Loading...
01/17/2001 . . . CITY COMMISSION SPECIAL MEETING CITY OF CLEARWATER January 17, 2001 Present: Brian J. Aungst J. B. Johnson Robert Clark Ed Hart F. David Hemerick Mayor/Commissioner Vice-M ayor /Comm i ssioner Commissioner Commissioner Commissioner Also present: William B. Horne II Garry Brumback Pamela K. Akin Cynthia E. Goudeau Brenda Moses Interim City Manager Assistant City Manager City Attorney City Clerk Board Reporter The Mayor called the meeting to order at 1 :03 p.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. Interim City Manager Bill Horne welcomed everyone and briefly reviewed the process for negotiations with the three developers proposals for the beach. He said at the December 2000 meeting, the Commission had authorized staff to negotiate with developer teams on behalf of the Commission regarding specific projects for which the Commission would be asked to give their support. Staff has kept the Commission informed of the process. ITEM 2 - Staff and Consultant update of the proposals Planning Director Ralph Stone reviewed the status of beach development proposals. He said the term sheet from the Mack Development proposes development of a parking garage on the Pelican Walk site that would be open to public use. They propose the City lease the parking spaces for 5 years with the option to buy the garage for $16.1 million at the end of the 5 years, or in 3 years at the same level. A second garage is proposed as an option south of the Pier, generally between Hamden and Coronado and south of Third Street. A public boardwalk also is proposed. The Mack Development team also proposes to purchase the properties on East Shore and redevelop them into retail, residential, and motel/hotel uses. The improvements would dedicate the public boardwalk from the Pier north, and back around to Mandalay Avenue on the bay side. Redevelopment of the Yacht Basin would include 3 condominium towers with a maximum height of 150 feet. The City will grant them an allowance for bonus hotel rooms based on specific criteria. The City's primary interest is consolidation and redevelopment of East Shore and dedication of the public boardwalk. Staff feels it necessary for the Mack Development team to give the City some type of assurance or guarantee that all of the development will take place, before recommending the proposal. msp0101 1 0111 7/01 . . . Mr. Stone said the Markopoulos team has significantly amended its proposal in the right direction. They have proposed: 1) a reduction in the number of rooms to 460, using 240 rooms from the existing unit pool; 2) a 600 space parking garage for their private use; 3) two 150-foot high condominium towers, one on the current Portview property east of Coronado, and one west of Coronado on the corner facing the Portview property; the other structure on South Gulfview would be approximately 1 50 feet MOL high; 4) relocating First Street but not as far south as originally proposed, with skywalks. This proposal is still in the planning stages and staff continues to discuss initiatives for Coronado to become a 4- lane road. The proposal also considers using the Spyglass Hotel structure in order to construct an efficient parking garage. Charlie Siemon, Siemon and Larsen, said other than the two 1 50-foot towers in this proposal, the balance of the structures are less than 100 feet. Mr. Stone said the Kimpton team has submitted a formal site plan with modifications to their proposal: 1) the 250-room hotel requires 188 units from the bonus pool at a height of 1 50 feet; 2) parking garage with 800 spaces, 400 for their operation and 400 public spaces, but owned and operated solely by Kimpton; 3) dedication of 10 feet on the east edge of their property to allow the City to construct a 4-lane segment on Coronado; 5) agree to pay for the portion of the beachwalk and South Gulfview improvements that front their property; 6) front the costs for expanded length of South Gulfview relocation and the beachwalk from a line that would intersect the Pavilion to First Street, conditioned upon the City reimbursing them from ad valorem taxes that would be generated beyond the current taxes generated today; 7) elevated public pedestrian amenity for guests to cross over South Gulfview to link up with the beachwalk on the other side of South Gulfview; and 8) vacation of Third Street. Mr. Stone said this proposal to build and pay for a parking garage presents a significant advantage for the City not to have to finance a garage in that location. ITEM 3 - Staff update on Beach bv Deskm Mr. Stone said the current scale of development on the beach will continue to remain in line with the City's policy, except for limited locations identified for taller buildings; 1) between the Clearwater Beach Hotel and the Hilton, and 2) south of the Pier to the Adam's Mark Hotel. Staff needs the Commission's input regarding the area, as most of it is zoned tourist and has the potential for buildings up to 100 feet. In exchange for the framework proposed by the Mack Development, the City would embrace the type of project proposed, not the specifics. Staff's secondary position is for the City to consolidate the property and issue a public request for proposal (RFP) to determine if there are any other proposals. The worst case scenario is the City would have to establish a framework along East Shore and Poinsettia. In that circumstance, east of East Shore, allowable buildings would be a maximum of two levels of development over parking. Between East Shore and Poinsettia, buildings would be 3 to 4 levels over parking. Similar language is included in the other districts mentioned by staff. msp0101 2 01/1 7/01 . Mr. Stone said staff is introducing the option of creating a development parcel framed by First Street, Coronado, and South Gulfview that would provide an opportunity for development. Staff is concerned the current parcel is too small to develop. Language has been added in the Beach by Design document stressing the need for a sidewalk between the beachwalk area and Clearwater Pass. Mr. Stone said in an effort to make Hamden a more residential community, staff is proposing to add the option to take properties on Hamden, vacate Hamden, and wrap residential uses around a parking garage, subject to traffic impacts. Staff also proposes increasing the bonus pool from 400 to 600 units. Staff proposes: 1) use the density pool to incent 3 projects; 2) increase the bonus pool; 3) change the limitation of 10% of units with kitchen facilities to 25%; 4) modifiy to allow a fourth taller building within a specified distance, as 500 feet between buildings does not work well; and 5) add the possibility of a Marina parking garage. ITEM 4 - Mack Development Team . Rick Gillette, architect, reviewed the site plan. The project includes retail activity on the beach side of the development. The main portion of the building is slenderized in the center. Step-backs are incorporated to lessen the impact of the height and consideration has been given to the space between buildings. The proposal includes 310 units of high end residential condominiums, 110 mid-rise villas, 230 units of hotel space, over 93,000 square feet of retail uses. The development incorporates an overall urban design, harmony of buildings with vistas, and a strong sense of human scale and form from street views. The linkage of different elements comprise streestscaping along Poinsettia with awnings and other amenities and a boardwalk with varying widths and seating and landscaped areas, gazebos, etc. to enjoy the view. Tim Johnson, representing the Mack Team, submitted an economic analysis and detailed term sheet of the proposal. He said the Fishkine study provides extensive analysis of the net benefit to the City if Mr. Mack is successful in completing the entire development. If only one-third of the proposal is completed, it would provide over $600,000 annually to the City. If the entire project were completed, the City would net approximately $900,000 annually. He reviewed some of the major elements in the detailed term sheet which has been reviewed by staff: 1) guarantees the City that needed parking facilities would be constructed on the north and south beach; 2) refurbishment of Pelican Walk and redevelopment of the Yacht Basin site; and 3) provides economic stimulus needed for redevelopment of East Shore. He said Mr. Mack could not give the City a guarantee that all property along East Shore will be acquired and the boardwalk constructed. He said that is primarily because the City has not exercised its power of eminent domain. However, Mr. Mack will make generous offers to property owners and once acquired, will impose unities of title on all properties. Mr. Johnson said large incentives are built into this project: 1) if the project meets the defined developer obligations in the term sheet relating to property on East Shore, Mr. Mack will receive a minimum of 160 bonus rooms; 2) on the south garage site, Mr. Mack would receive vacation of Hamden which would carry with it associated density; 3) Mr. Mack would be permitted to build the south beach garage and take the remaining density from the garage . msp0101 3 01 /1 7/01 . . . site for use elsewhere; 4) if assemble East Shore properties, the City will vacate East Shore which also will provide additional density; and 5) if successful in assemblage of properties on East Shore, it would delay the City's option for 2 years to purchase the north beach garage. Mr. Johnson felt none of the developer proposals are competitive with each other. He said the Mack proposal is fair to both the City and the developer and represents the City's best opportunity for redevelopment of the East Shore area. He stated he has received petitions signed by over 700 persons in favor of this proposal. He said additional large non-refundable deposits are required to be made by Mr. Mack by the end of this month in order to keep critical properties under contract. He requested the Commission authorize staff to enter in to a Memorandum of Understanding before the end of the month that reflects the term sheet. The meeting recessed from 2:02 to 2: 14 p.m. ITEM 5 - Markopolous Development Team Alan Rousch, HKS Architects, Inc., said he felt Mr. Stone provided a good representation of the project. He presented no additional material. ITEM 6 - Kimpton Development Team Bill Kimpton, Kimpton Development, complimented staff. He said this is a great opportunity for the City and felt the proposal meets the City's vision and goals for beach redevelopment. Richard Gehring, Kimpton Development, said the project reflects the City's request to reduce the number of parking spaces. Approximately 400 to 600 spaces may be available for public use in the parking garage. An environmental review, geotechnical borings, site plan, application for review by the CDB, traffic studies, etc. have been completed. He reviewed the site plan and said the project will front Coronado and South Gulfview. The dynamics of the beachwalk have not been designed. The project will include 3 - 4 restaurants, sidewalks, pedestrian walkway, parking garage, swimming pool, health spa, elegant hotel, and other amenities. He said the construction and completion of this project tracks the City's Memorial Causeway bridge opening. Nine persons spoke in favor of pursuing redevelopment of the beach and the three proposals. Two persons expressed some concerns regarding the proposals In response to a question, Finance Director Margie Simmons said the Kimpton team plans to build and pay for the parking garage with no costs to the City. The impact to the City is a reduction of 300 parking spaces on Gulfview which will result in an estimated $500,000 loss in revenue. Ms. Simmons felt the City could absorb the loss. The other impact is redevelopment of South Gulfview. The City has $5.5 million set aside from Penny for Pinellas funds, but Ms. Simmons was unsure of the specific amounts slated for Mandalay, Coronado, and South Gulfview. She said the parking fund pays for lifeguards, msp0101 4 01/1 7/01 . etc. and the possibility exists that cuts may need to be made to the general fund or ad valorem taxes increased. Assistant City Manager Garry Brumback said the structure of the deal does not necessarily create a loss that needs to be recouped. In response to a question, Mr. Gehring said the hotel rates would be determined by the Marriott corporation. He said the Kimpton proposal provides for an 80-foot right-of- way on Coronado. The entrance into the parking garage provides for 15 cars to prevent traffic jams under normal conditions, with 2 points of departure. Buses will use drop-off sites outside the building. Of the approximately 835 parking spaces, 400 to 600 public spaces would be available, based upon hotel occupancy. The number of hotel rooms has been reduced to 250. He said the construction of the parking garage and the Gulfview improvements are subject to discussion. The Kimpton group would advance dollars that would be reimbursed for various segments of the project related to Gulfview improvements. The project also includes a commitment to expand the South Gulfview redesign further south. . Charlie Siemon, Siemon and Larsen, said the developer obligation would be for Gulfview beachwalk improvements from First Street to the Pavilion. The Kimpton group would be reimbursed for part of that project out of funds described in the term sheet. The City also requested the group construct the balance of the beachwalk and the City would provide some dollars. In response to a question, Mr. Siemon said improvements to north and south Coronado are part of the municipal obligation. He said all 3 developers' projects depend upon removal of parking from the beach. Staff wants the developers to assume the risk of a revenue shortfall. It was remarked that the City could not enter into any other parking agreements on the south beach for a period of 3 to 5 years to allow the Kimpton group to construct their parking garage. Mr. Gehring said if the City builds other parking structures, he has requested the City participate in any risk the Kimpton group assumes due to the possibility of competing parking garages. Mr. Siemon said the negotiating team has not determined a level of protection regarding parking garage issues. He feels there is a way to balance competing interests. Mr. Stone said in meetings with the Secretary of the Department of Community Affairs (DCA) last week, he indicated the bonus pool of rooms is an option the DCA would most probably support. Mr. Siemon said in the event the provision for the pool does not materialize, the obligations of the agreement would no longer be in effect, but the City and developer would enter into good faith agreements for the future use of the property. It was remarked that the PPC has addressed the issue of TOR (transfer of development rights) and the bonus pool. They are considering how it impacts traffic. Other cities are facing the same issues. Mr. Gehring said King Engineering's analysis of traffic impacts indicates that the double feed system would not create major movement problems. Mr. Siemon reviewed the pluses and minuses of the Kimpton project. He said the proposal contemplates immediate construction of an upscale resort on the beach that includes a schedule that allows them to move forward with no major conditions. They are prepared to begin the project immediately. It also allows achievement of Gulfview improvements without responsibility for raising funding, soliciting contracts, and eliminates the City's risk on financing and cost overruns. The project allows the City to remove . msp0101 5 0111 7/01 . . . parking spaces from the beach. The firm has a proven track record and the ability to deliver. He knew of no significant negatives to the project. He felt the project is as good as the City could hope for. In response to a remark, Mr. Siemon said although discussions are ongoing regarding parking issues, the project concurs with the City's initiatives and goals. The developer has submitted schedules and new terms and made adjustments to various elements of the plan as requested by staff. Mr. Siemon did not feel the $500,000 shortfall in parking revenues would be difficult to overcome. In response to a question, Mr. Gehring said the Marriott Hotel had indicated their interest in participating in the project, but must complete a design review process before committing to it. He said shifting to an alternative hotel would not be difficult. He said the quality of the resort and proximity to the beach is why Marriott wants to be in Clearwater. He said he is confident about their participation and the Kimpton group is poised to deliver. It was requested staff supply the Commission with traffic impact studies. It was suggested that performance guarantees be given. Discussion ensued regarding the Markopolous project. Concern was expressed regarding the alignment of First Street to ensure it is not a key intersection. In response to a question, Public Works Administrator Mashid Arasteh said staff would request authorization for a work order for a traffic nalysis of all 3 projects at the next Commission meeting. Mr. Siemon said discussions are ongoing with the Markopolous team regarding the location of the parking garage and the right-of-way. Staff is looking for ways to complete a parking garage in addition to the ability to make Coronado a 4-lane road. It was remarked that further negotiations are necessary and that media articles pertaining to the lack of negotiations are unfounded. Mr. Siemon said concerns that are being addressed include sensitivity to height and scale of the building on the Marina side of the property. The skywalk across Gulfview is a major gateway that includes the Pier 60 area and its aesthetics/character is a major issue as it could be a community resource. He said the location of First Street is a policy decision. Direct dry sand access for a hotel is a major plus and would attract patrons. He said this project sensibly makes use of a larger unit of land with two equal blocks of land connected. He said although the building is large, that is what it takes for such a large- scale destination resort to be successful. This project complies with the requirements originally conceived in the Beach by Design concept. He said the principal issue to how to deal with the right-of-way on Coronado, the character of the skywalk, and if the Marina is the best place to put an additional building that exceeds 1 50 feet in height. He said at this point in the process, he could not offer any remarks as to its principal disadvantages. In response to a question, Mr. Siemon said the project involves 220 units. The Spyglass Motel would be renovated. Mr. Markopolous is anxious to proceed as quickly as possible with the project. The 60 parking spaces are for private use by the hotel. Staff has requested a better design rather than more parking. Staff is discussing various issues with the developer including costs of improvements for Gulfview, etc. Mr. Stone said staff has had discussions with the Markopolous team regarding various elements of the plan. Staff also has discussed elements of the Kimpton plan with them as it relates to the beachwalk and Coronado, and is making considerable incentives msp0101 6 01/17/01 . available to them that should improve this project. In response to a question, Mr. Rousch said he is looking forward to moving ahead with discussions regarding the project. He thanked staff for their efforts. . Discussion ensued regarding the Mack Development proposal. In response to a question, Mr. Stone said the developer could not guarantee construction of the boardwalk until all properties were acquired. They indicated cash flow issues and the timing of improvements also are considerations. In response to a question, Mr. Siemon said if nothing but Phase One was completed, the boardwalk would not materialize. The only boardwalk being guaranteed is around the Yacht Basin. It was remarked the boardwalk should not present a dead end to negotiations. In response to a question, Mr. Siemon said as currently proposed, the south garage conflicts with the 3-year reservation that Kimpton asked for, but has not received. Mr. Siemon said for the project to move forward, an acceptable design for the area is necessary. Negotiations have reached an impasse because of 2 conditions. In response to a question, Mr. Brumback said if the City purchased the parking garage within 3 years, the cost would be $20.5 million; in 5 years the cost would be $23.7 million. Mr. Siemon felt if the Commission did not want to agree to consider this project it would be on the basis of the risk that the consolidation of properties and completion of the boardwalk would not be completed, except around the Yacht Basin. He said if the Commission wishes staff to continue to negotiate without those elements, they could instruct staff to move forward. In response to a question, Mr. Johnson said Mr. Mack believes he can complete the project and make a profit while providing benefits to the City. Mr. Mack will not promise something he cannot do or respond to unrealistic expectations from the public. Mr. Mack is offering the Yacht Basin project, rehabilitation of the Pelican Walk site with the City's option to acquire it in 3 years, and buying and holding the parking site at the south beach. He said staff suggested vacating Hamden in order to address other requests for residential uses in conjunction with the parking garage. It was remarked the Yacht Basin does not need to be incentized, as any developer would be interested in developing that area. Mr. Siemon said this project presents an opportunity to achieve redevelopment of the property in a comprehensive fashion and receive a public amenity of access along the waterfront. He disagreed with Mr. Johnson's opinion regarding the City's inability to build parking garages. He said the City could provide additional parking on the Marina property or on the Rockaway site without additional public costs. He said positive cash flow could be realized from the garages. With City funds, the net cost to the City would be less. He said the parking analysis for Beach by Design identified 3 sites north of the Days Inn and south of the Palm Pavilion that were economically viable assuming the City had the financial resources to ensure their construction. The Pelican Walk site was the preferred site. It was remarked that the rehabilitation of Mandalay has been budgeted. In response to a question, Mr. Siemon said if there is a valid public use and the action can eliminate negative conditions, eminent domain is an option. He said further negotiations are needed on this project. In response to a question, Mr. Johnson said Mr. Mack's representatives have not spoken to property owners regarding holding onto properties for lengthy periods of time. He said the City is in a position to have the developer bank the land for a south beach parking garage and East Shore is not the issue. . msp0101 7 01 /1 7/01 . In response to a question, Mr. Siemon said Beach by Design recognized and suggested the City needs to set realistic expectations, recognizing that the excess demand today at the beach is more than the City will ever have the capacity for, and other means for traffic needs must be addressed to improve mobility at peak times. Shifting resort accommodations where people stay, using shuttles and other amenities, could mitigate traffic concerns versus building small motels and forcing visitors to drive elsewhere. If facilities are upgraded and provide adequate, convenient parking, people will use the facility and get out of their cars. Discussion ensued regarding what could be done to move forward with this project. It was remarked that parking garage prices are too high. It was suggested the developer could construct the boardwalk and work around those properties that have not yet been acquired. It was suggested the developer present plans regarding development of East Shore now, rather than wait for the entire project to be designed. It was remarked that due to some of the stringent requirements placed on the developer, the project cannot move forward. Mr. Johnson said his client is willing to continue negotiations in good faith. Mr. Horne said at tomorrow night's meeting, staff would request feedback on Beach by Design amendments and further guidance regarding how staff is to proceed with each of the developer proposals. It was remarked that approximately 7 public meetings have been held regarding these proposals in an effort to obtain public input. . ITEM 7 - Adjournment The meeting adjourned at 5:06 p.m. ([r/~.---- ATTEST: ~~[. ~ I City Clerk ~ . msp0101 8 01 /1 7/01