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06/14/2004COMMUNITY REDEVELOPMENT AGENCY MEETING CITY OF CLEARWATER June 14, 2004 Present: Brian J. Aungst Chair/CRA Trustee Hoyt P. Hamilton CRA Trustee Frank Hibbard CRA Trustee William C. Jonson CRA Trustee Carlen Petersen CRA Trustee Also present: William B. Horne II City Manager Garry Brumback Assistant City Manager Ralph Stone CRA Executive Director/Asst. City Manager Pamela K. Akin City Attorney Mary K. Diana City Clerk Brenda Moses Board Reporter The Chair called the meeting to order at 1:08 p.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. 2. Approval of Minutes Trustee Hibbard moved to approve the minutes of the April 12, 2004, meeting, as recorded and submitted in written summation by the City Clerk to each Trustee. The motion was duly seconded and carried unanimously. 3. Approval of the Assignment of the CGI Inc. Development Agreement with the Community Redevelopment Agency to Crum Services Inc. and authorize the appropriate officials to execute same. The property, originally developed as the headquarters for IMR Inc., is now owned by CGI Inc., and has been for sale for some time. Recently, a contract for purchase of the property was executed by a local company, Crum Services. CGI formally contacted the CRA (Community Redevelopment Agency) to request approval of assigning the Development Agreement to Crum Services. Crum Services, an employee leasing and staffing business, also has business interests in insurance and payroll and benefit services. The company indicates it will relocate its corporate headquarters to the CGI property and relocate 200-250 employees to the site upon purchase. Company representatives indicate that they will not sublease space in the building, as the company is experiencing rapid growth and expects to absorb the space in the property. However, subleasing of the space is possible in the future. The development agreement between the CRA and CGI provides for the assignment of the Development Agreement upon approval by the CRA. The Development Agreement included terms for the original sale of the property to IMR and the development of their corporate headquarters. The two Class A office buildings include a total of 129,000 square-feet of space on approximately seven acres. An additional 7.4 acres of property are available for future development. The 2003 assessed value of the property by the Property Appraiser's Office is $12,450,000. The CRA and City committed to certain infrastructure improvements, environmental indemnification, environmental remediation, fill material, improvements to surrounding streets, and reinvestment of three years of tax increment revenue from the project toward streetscape improvements in the general area. The respective commitments of the two parties have been fulfilled. Environmental monitoring continues on a small portion of the site pending FDEP (Florida Department of Environmental Protection) Regulation clearance and the third year of tax increment has been collected and set aside for streetscape improvements in the area. CRA staff is developing project parameters to utilize the streetscape funding. The Legal Department has prepared a Consent to Assignment Agreement that will be executed by the Chair of the CRA, subject to CRA approval. The CRA Executive Director and City Attorney recommend approval of the assignment of the Development Agreement. Frank Crum, Jr., President and owner of Crum Services, said he anticipates his company will grow and may construct a parking garage in the future. He expressed excitement about relocating to Clearwater and offered to assist the City in any way possible. In response to a question, Assistant City Manager Ralph Stone said environmental monitoring would continue on the portion of property that fronts Cleveland Street. He anticipates receipt of a letter in the near future from the FDEP declaring the property remediated. The property owner will then be able to close the sale on that property. It was remarked the City is excited to have Mr. Crum in the downtown. Trustee Hamilton moved to approve assignment of the CGI Inc. Development Agreement with the Community Redevelopment Agency to Crum Services Inc., and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4. Discussion and further evaluation of the CRA, DDB, and Main Street Program Trip to Daytona Beach and Orlando. Representatives from the CRA/City Council, DDB (Downtown Development Board), and Main Street Program, along with Economic Development staff, visited Daytona Beach and Orlando on May 13 and 14, 2004. The group met with City, CRA, DDB, and Main Street program representatives to find out how their programs are working, the relationships between the groups, downtown strategies, etc. The group also visited the cities of Deland and Winter Park and briefly toured their downtowns. Daytona Beach and Orlando had several successful plans for Downtown revitalization that may be applicable to Downtown Clearwater. Below are several initiatives and program ideas that need further staff evaluation: 1) Define incentive programs necessary to spur desired downtown redevelopment, specifically residential and entertainment (Project-based incentives, TIF (Tax Increment Financing) rebates, upfront cash); 2) Conduct economic analysis to identify downtown’s target markets; 3) Develop a restaurant and retail recruitment strategy to cater to Clearwater’s target markets; 4) Develop special events downtown with focus on target markets; 5) Strengthen City partnerships with property and business owners; 6) Improve and create additional downtown “Anchors,” specifically entertainment and public spaces to include: a) Redevelopment of Coachman Park; b) Development of a downtown Marina; and c) Develop a market connection between Downtown and Clearwater Beach. Assistant Economic Development Director Geraldine Campos gave a power point presentation of the trip identifying key program highlights including marketing, development trends, incentives, streetscapes, public parking, and retail/restaurant recruitment and summarized strategies. It was remarked that Daytona Beach’s streetscape program did not impact the business community until the City identified customers and determined how to target that market. Daytona Beach has an economic restructuring committee that actively pursues waterfront grants. Their historic district is in the southern half of downtown. In response to a question, Mr. Stone said Orlando’s Main Street program is in its twentieth year and has produced $10 million in TIF revenue yearly from residential and commercial revenues. Discussion ensued with comments that Orlando’s program began with only $150,000, and that the program has transformed the downtown over time. It was stated these cities prove the importance of downtown streetscaping, creating a demand for downtown residential uses, developing parking partnerships with local churches, etc. Mr. Stone said the populations of Deland and Daytona Beach are much smaller than Clearwater. Discussion ensued with comments that Orlando’s “City Beautiful” model includes landscaping, gateway enhancements, and a neighborhood program staffed with 15 people, working to construct neighborhoods around downtown. 5. Executive Director (Assistant City Manager) verbal reports Mr. Stone recognized Economic Development and Housing Director Reg Owens for the exceptional job he has done for the City. Mr. Owens encouraged consideration of site-specific incentives, reported private development would help grow the tax base, recommended use of the waterfront by providing a destination, and thanked staff. He announced he has taken a position in Arizona but will retain local ties. 6. Other Business – None. 7. Adjourn The meeting adjourned at 1:40 p.m.