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12/12/2006 COMMUNITY REDEVELOPMENT AGENCY MEETING MINUTES CITY OF CLEARWATER December 12, 2006 Present: Frank Hibbard Chair/CRA Trustee Carlen Petersen CRA Trustee William C. Jonson CRA Trustee John Doran CRA Trustee Also Present: J.B. Johnson Councilmember appointee William B. Horne II City Manager Garry Brumback Assistant City Manager Rod Irwin Assistant City Manager/CRA Executive Director Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Rosemarie Call Management Analyst The Chair called the meeting to order at 2:18 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 2.1 Approve the minutes of the October 2, 2006, Community Redevelopment Agency Meeting as submitted in written summation by the City Clerk. Trustee Jonson moved to approve the minutes of the regular meeting of October 2, 2006, as recorded and submitted in written summation by the City Clerk to each Trustee. The motioncarried was duly seconded and unanimously. 3. CRA Items 3.1 Approve a Development Agreement between the CRA and OPUS South Development, LLC concerning “Water’s Edge” project, 331 Cleveland Street, delineating the terms and conditions for the provision of certain economic assistance by the CRA. OPUS South Development, LLC is developing the Water’s Edge project located at 331 Cleveland Street. The Project is a mixed use development with a maximum of 157 residential condominium units, approximately 310 private parking spaces, not more than 10,600 square feet of ground level retail and sidewalk and site improvements. Flexible Development Approval was issued by the Community Development Board (CDB) on August 16, 2005 that permits the development of the Project. The purpose of this Development Agreement is to secure economic assistance through the Community Redevelopment Agency (CRA) to increase the economic feasibility of a project which supports the implementation of the City of Clearwater’s “District Vision” for the revitalization of the Downtown Core; and to further the implementation of the Downtown Redevelopment Plan by Community Redevelopment Agency 2006-12-12 1 the development and construction and operation of the Project to enhance the quality of life, increase employment and improve the aesthetic and useful enjoyment of the downtown. The main business terms of the Agreement are for (1) the reimbursement of impact fees not to exceed $535,000 and (2) the reimbursement of sidewalk and site improvements following the Osceola Streetscape Conceptual Design not to exceed $500,000. The total reimbursement to the Developer will not exceed $1,035,000. The project is estimated to generate between $750,000 and $1,000,000 in tax increment in the first full year of assessment the project is operational (estimated to be received in 2009). Starting in the fiscal year in which tax increment revenue is expected to be generated (most likely 2009), the CRA will budget for the anticipated reimbursement to the Developer, and in each annual budget thereafter until the reimbursement is paid in full. Upon execution and recordation of the Completion Certificate, the Developer will provide the CRA with documentation verifying both the amount and payment of Impact Fees for the Project by the Developer and the Developer’s expenditures for the Sidewalk and Site Improvements. Within thirty (30) days after receipt of such documentation, the Agency will acknowledge in writing to the Developer the amount of: a) the Impact fees to be reimbursed to the Developer and b) the cost of the Sidewalk and Site Improvements constructed by the Developer. Within sixty (60) days after the Developer has paid its annual Ad Valorem Taxes, the Agency shall pay the Developer the lesser of the amount necessary to satisfy the total reimbursement due Developer, or fifty percent (50%) of the increment of the Project’s Annual Ad Valorem Taxes that are paid to the City of Clearwater and/or the Agency that year. If the first Annual Reimbursement (50% of the City of Clearwater’s and Agency’s Tax Increment) is not sufficient to satisfy the Total Reimbursement Due Developer, then the Annual Reimbursement shall be continued for up to three (3) additional years (for a maximum total of four (4) years after recordation of the Certificate of Completion) until the Agency has paid the Developer the Total Reimbursement Due Developer. Upon completion of the terms of this Agreement all parties will execute an Agreement Expiration Certificate. If the Agreement is not terminated earlier, it will terminate on the 10th anniversary of the effective date. In response to questions, OPUS South representative Mr. West said funds earmarked for streetscape improvements along Cleveland Street and Osceola Avenue are for public right- of-way only, any remaining funds could be used for façade enhancements but nothing final has been determined. City Attorney Pam Akin said this project is not subject to new public art ordinance as it was initiated prior to the ordinance being in place. Trustee Jonson moved to table the Development Agreement between the CRA and OPUS South Development, LLC until an approved TIF policy and plan is presented. There was no second. A concern was raised that on page 9, there is a reference to the CRA approving the site plan but the CRA has not had a full review of the site plan. Consensus was to change “approve’ to “accept.” In response to questions, it was indicated the reimbursement of impact fees was discussed at beginning of negotiations and staff agreed to recommend. Trustee Petersen moved to approve a Development Agreement between the CRA and OPUS South Development, LLC concerning “Water’s Edge” project, 331 Cleveland Street, delineating the terms and conditions for the provision of certain economic assistance by the Community Redevelopment Agency 2006-12-12 2 . . . CRA. The motion was duly seconded. Upon the vote being taken, Trustees Petersen, Doran and Chair Hibbard voted "Aye"; Trustee Jonson voted "Nay. II Motion carried. 3.2 Clearwater Aqua Proiect Status Review Reiker & Associates, Inc. President Mark Reiker reviewed the project development cycle, theater/office retail and garage components, pricing process, and structural requirements. In response to questions, Mr. Reiker said two years ago the City of Orlando invested $28 million in a 1.6 million sq. ft. downtown movie theater with retail and residential components and provided the developer with a $20 million no interest loan. Discussion ensued regarding future of traditional theaters and garage location standards. Consensus that theater would be a wonderful asset to downtown but currently cost prohibitive. 4. Other Business Discussion ensued regarding the need to address street lights and sidewalks within the CRA district. Trustee Jonson moved to establish a project to fill streetlight gaps within the CRA district. Concerns were expressed with lack of data and information. The motion was withdrawn until the CRA plan is discussed. 5. Adjourn: The meeting adjourned at 3:23 p.m. Attest: -~/~ ~ir Community Redevelopment Agency ~----0:NW'tL2: JE;-~~ f CitY~lerk _ ' Community Redevelopment Agency 2006-12-12 3