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09/13/2004 . . . COMMUNITY REDEVELOPMENT AGENCY MEETING CITY OF CLEARWATER September 13, 2004 Present: Brian J. Aungst Frank Hibbard Hoyt P. Hamilton William C. Jonson Carlen Petersen Dwight Matheny Chair/CRA Trustee CRA Trustee CRA Trustee CRA Trustee CRA Trustee Ex-Officio Member Also present: William B. Horne II Garry Brumback Geri Campos Pamela K. Akin Cyndie Goudeau Brenda Moses City Manager Assistant City Manager Interim Executive Director City Attorney City Clerk Board Reporter The Chair called the meeting to order at 1: 11 p.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. Approval of Minutes: August 30.2004 Trustee Jonson moved to approve the minutes of the August 30, 2004, meeting, as recorded and submitted in written summation by the City Clerk to each Trustee. The motion was duly seconded and carried unanimously. 1. Approve the Interlocal Agreement with the DDB (Downtown Development Board) to provide personnel. administrative and management responsibilities during Fiscal Year 2004-05 for an administration fee in the amount of $49.134 and authorize the refunding of Fiscal Year 2004-05 tax increment revenues to the DDB in the estimated amount of $89,797. The CRA (Community Redevelopment Agency) Trustees executed the first Interlocal Agreements to provide personnel, administrative and management responsibilities to the DDB in Fiscal Year 1999-2000. This is the sixth fiscal year that the CRA would enter into the agreement. The agreement between the CRA and the DDB states the CRA will provide a comprehensive scope of administrative and programmatic functions to the DDB including all administration of the program and the implementation of any funded projects. The management of the DDB by CRA staff enables the CRA and the DDB to utilize the public dollars more efficiently. The DDB shall pay the CRA an administration fee of $4,094.50 per month for the services agreed to in the Interlocal Agreement. The administration fee is cost neutral to the CRA because the CRA transfers this amount to the General Fund. The DDB's estimated share of the CRA tax increment revenues for Fiscal Year 2004-05 to be refunded is $89,797. The difference of $40,663 between the administration fee and the Community Redevelopment Agency 2004-09-13 1 . estimated increment payment will be reserved by the DDB to provide financial support for Clearwater's Main Street program. Trustee Hamilton moved to approve the Interlocal Agreement with the Downtown Development Board (DDB) to provide personnel, administrative and management responsibilities during Fiscal Year 2004-05 for an administration fee in the amount of $49,134 and authorize the refunding of Fiscal Year 2004-05 tax increment revenues to the DDB in the estimated amount of $89,797. The motion was duly seconded and carried unanimously. 2. Mediterranean Villaae Proiect Update Interim CRA Executive Director Geri Campos said in December 1999, the CRA issued a Request for Proposals for the development of an approximately 5-acre site fronting on Cleveland Street, commonly known as the Dimmitt property. As a result of that process, the CRA selected The Balk Company, Inc., for the purpose of negotiation for the redevelopment of the site in conjunction with the City's development of Prospect Lake Park, a regional stormwater lake and public park. The Balk Company proposed to build 100 residential townhomes, a swimming pool, and a community facility in three phases. The Balk Company will purchase the property in three stages at a rate of $7.75 per square-foot. The total land cost is $1,823,560 based on 235,298 square feet (5.4 acres mol). Stage 1 (15 units) is 37,117 square feet or $287,657, Stage 2 (49 units) is 120,740 square-feet or $935,735 and Stage 3 (36 units) is 77,441 square-feet or $600,168. . Per the Development Agreement, the CRA and Brownfields Program agreed to pay certain development related fees, estimated to be $386,771, on behalf of the project. Those fees include impact fees, permit fees, utility connections fees and stormwater "buy-in" fees. The fees will be paid as construction occurs and have timeline incentives associated with them. The City has agreed to reduce thestormwater buy-in fee pursuant to City resolution No. 99-43 from $200,000 to $100,000. The remaining Stormwater buy-in fee of $100,000 will be paid from the CRA Mediterranean Village Project Fund. In addition, the City has committed to certain remedial actions on the property pursuant to the Brownfields Site Rehabilitation Agreement entered into July 2001 between the City and Florida Department of Environmental Protection. To date, State and Federal Brownfields grants have provided $1,038,882 in funds for assessment, remediation, permit fees, demolition, hydraulic lift removals, and legal fees for the Mediterranean Village project. Balk has paid $130,000 for soil remediation on the property and will be responsible for all backfill costs on the site. Additional remediation costs, if any, will be borne by the CRA. At the time of the development agreement the total estimated construction value of the project at build out is $16,425,000. A total of $224,808 of annual ad valorem and non ad valorem revenues is projected for this project at build out. . A letter dated April 30,2004 from the Pinellas County Property Appraiser office stated an estimated 2005 just market value on the 15 units in Mediterranean Stage I development to be $2,235,000. This value was used by Mediterranean Village, L.L.C. in filing applications for the Enterprise Zone building materials sales tax refund. Refund is anticipated to be $46,757.40 for the 15 units. Community Redevelopment Agency 2004-09-13 2 . . . The CRA closed on the 5.4 acre Dimmitt property on March 9, 2000 for a purchase price of $1,207,539.20 less a 3% repair allowance of $1,171,303.03 with a loan from the City. The principal balance of the loan at the end of FY 2003-04 is $481,605.49 to be paid out over 4 years at $120,401.37. The total interest due is $62,804 to be paid out over 4 years at $15,701. The total principal and interest outstanding obligation due to the City is $544,409.49. II. Update on Construction of Staae I Mediterranean Village received a Development Order approving a Flexible Standard application for 100 multifamily dwellings on December 13, 2001. Stage I broke ground in August 2002. Certificates of Occupancy were issued in June 2004 on units 1-9; units 10-15 and pool have not been issued CO's. Outstanding issues: ~ Community Facility-Contractor is currently working on this ~ Pool III. Soil Remediation at Staae II As per the Development Agreement, the City/CRA is responsible for the soil remediation of Stage II. The City retained consultants for assessment and remediation of Stage II. We are currently using URS Corporation for this purpose. Below are highlights of the work completed to date: A Phase I Environmental Site Assessment (ESA) was conducted by IT Corporation in March 1999. Phase II ESA's were conducted by URS Corporation (formerly Dames & Moore) from April 1999 to October 2000. Twelve hydraulic lifts were removed by URS Corporation in June 2000. Approximately 450 tons of petroleum-impacted soil was removed from two hydraulic lift areas in September 2000. A 1,OOO-gallon underground storage tank was removed at the location of the former Caseber Furniture showroom in July 2000. This portion of the property had been used as a Packard gasoline station in the 1930s. No further assessment of this storage tank area was approved by the Pinellas County Health Department. Soil assessment activities were conducted by URS Corporation from September 2000 to October 2001. Interim source removal activities were conducted in two phases. The initial phase was conducted from November 2001 to December 2001. The second phase was conducted in May 2002 and August 2002. Approximately 13,000 tons of soil was excavated and transported to a thermal treatment facility. A soil remediation- engineering plan was submitted to the FDEP in March 2004. This plan was approved in August 2004. Community Redevelopment Agency 2004-09-13 3 . Approximately 800 cubic yards of soil containing Arsenic exceeding the current Residential Soil Cleanup Target Level (SCTL) of 0.8 was removed from the site and transported to 507 Vine Street, a city-owned facility. The original cost estimate to remove 800 yards of Arsenic impacted soils was approximately $44,000. In lieu of transporting the soil to a waste disposal facility, the cost to the City has been reduced to approximately $16,000. This was accomplished convincing the Department of Environmental Protection to agree to let the City transport 90% of the soil to a City facility. There, the soil will be sifted of all debris and grass, and will be stockpiled until it can be used at City sites where the Arsenic Commercial SCTL of 12 ppm is acceptable. Once the soil has been removed, URS will conduct confirmation sampling to determine which lots will require temporary deed restrictions; temporary deed restrictions will be placed on those lots where soil with Arsenic readings between 0.8 and 2.1 will remain under structures. The current Arsenic Residential SCTL of 0.8 ppm is expected to be raised to 2.1 ppm by the end of 2004. Once this occurs, deed restrictions (for soil contamination) can be removed from the site. At this point, all environmental remediation issues have been addressed. IV. Groundwater Monitorina Plan The Florida Department of Environmental Protection (FDEP) in June 2004 approved a Groundwater Monitoring Plan for this site. Initiating the Plan has been postponed until such time that monitoring wells scheduled to replace wells damaged during excavation can be installed without further damage by construction activities. Only a small portion of the west side of the property will be monitored under the Plan outlined in a Brownfield Site Rehabilitation Agreement (BSRA). The BSRA was entered into between the City and FDEP in 2001 to facilitate future development of the site. . Once new monitoring wells are installed, groundwater monitoring will continue until two consecutive quarterly monitoring events show that Residential Groundwater Cleanup Target Levels (GCTL's) have been met. $28,800 from Brownfields EPA funds have been set aside for the monitoring. At this time, it is not known how long groundwater monitoring will be required at the site. V. Construction of Staae II In preparation for the construction of Stage II, Mr. Balk selected a new contractor, Crawford Construction. Furthermore, he has also hired a construction manager. At this time, the estimated construction time for Stage II, once begun, is one year. Mr. Balk is available to present plans and elevations for Stage II, specifically how the fayade will look from Cleveland Street. Any major revisions to the approved Development Order and related site plan /design will require review and approval as a new Flexible Standard application with approval authority by the Community Development Coordinator. Minor revisions to the site plan and/or design can be approved administratively. VI. Next Steps S Mr. Balk's contractor, Tanktek, is currently backfilling Stage II. This portion of the project is estimated to be complete by mid-September 2004. . S URS will finalize the Site Rehabilitation Completion Report and submit to FDEP. URS will also determine the lots that will have temporary deed restrictions (estimated at 10-15 Community Redevelopment Agency 2004-09-13 4 . lots). Again, all deed restrictions will go away once the residential soil clean up target levels are raised from their current levels to 2.1 ppm. ~ Once city receives letter from FDEP, the CRA and Mediterranean Village LLC can close on Stage II. ~ City will also transfer the Florida Department of Environmental Protection Voluntary Cleanup Tax Credit (VCTC) Certificate awarded to the City of Clearwater in February 2002 in the amount of $189,622.36 to Mediterranean Village, LLC as per development agreement. In response to a question, Ms. Campos said there will be deed restrictions on these properties. In response to a question, Assistant City Manager Garry Brumback said 507 Vine Street is a Parks and Recreation maintenance area. He said it is difficult to make a determination as to when the remediation would be completed. A letter from the FDEP (Florida Department of Environmental Protection) will be required. . Mr. Balk reviewed the proposal. He said the buildings were moved back and the interior of the project was designed to provide more room for plantings. In response to a question, Mr. Balk said the wall facing Cleveland Street will be concrete block. He said the horizontal lines on the wall facing Cleveland Street are commonly used elements that give the building a textured appearance and diminish the scale of the wall. The units were designed to fit the site, which is rather tight on the north and south boundaries. Mr. Balk said he also will provide the metering and water lines for additional landscaping the City plans to install. He said the homeowners' association will be responsible for maintaining the landscaping in common areas. In response to a question, Mr. Balk said security and speed are a concern through the development. Discussion ensued in regard to access to the development from Cleveland Street and it was felt the homeowners may not want pedestrian traffic through their residential development. Mr. Balk said he will let prospective buyers make that decision. Mr. Balk introduced the construction manager and contractor for the project. 3. Update on the Downtown - Gatewav Strateaic Action Proaram In February 2002, the CRA and the Main Street Joint Venture Committee met with Downtown Development Board members, Clearwater Regional Chamber of Commerce representatives and local property owners to identify specific actions for improving downtown Clearwater. Through a strategy meeting and a tour of the area, the group identified the strengths, challenges and opportunities downtown as well as short-term action items to be accomplished in one to three years. . From this meeting, a matrix was developed defining projects, programs, and costs by year as well as priorities for the future redevelopment of downtown and the gateway. It was envisioned that this matrix, the Downtown-Gateway Strategic Action Program, would be updated on a yearly basis and new items identified and added to subsequent years. Fiscal Year 2002-2003 was designated Year One of the Downtown-Gateway Strategic Action Program. The Action Program is a key redevelopment tool that is identified in the Downtown Clearwater Redevelopment Plan as a strategy that we continue to implement the program and update on a yearly basis. The implementation of the Action Program requires a partnership of the CRA, DDB, Main Street Program and the City to succeed. Community Redevelopment Agency 2004-09-13 5 . . . Year One of the Action Program was an incredibly successful and productive year. In July 2003, a Joint Venture Strategic Planning Session was held with Main Street program volunteers, Chamber representatives and property owners to review the first year's efforts. Many of the projects listed were completed and a total of $100 million in public improvements had begun. After the presentation, attendees suggested potential projects for Years 2 and 3 to be considered in the Action Program. We are now nearing the very successful end of Year 2 (Fiscal Year 2003-2004). On July 14,2004, the Joint Venture again hosted its partners to celebrate our Year 2 accomplishments. Some of these successes include: starting the reconstruction of Myrtle Avenue and Ft. Harrison roadway improvements; approval of the Station Square Condominium project, implementing the Wayfinding portion of the Streetscape and Wayfinding Master Plan; conducting a feasibility study for a movie theater downtown; and beginning Cleveland Street Streetscape construction documents. Furthermore, the group brainstormed additional projects and programs for Years 3, 4 and 5. Ms. Campos gave an update on the Downtown-Gateway Strategic Action Program. She said the basic idea of the program is for all Downtown groups to get together to strategize on how to improve Downtown. She reviewed successes and main themes. Ms. Campos was complimented for her approach to the program. She has asked the Mainstreet Committee to prioritize the most important projects, come up with a plan to implement them, and make sure the financial budget is available to accomplish them. Ms. Campos reviewed the 2004/05 work program. In response to a question, she said there is a two-way communication effort to find consensus in dealing with the waterfront area In response to a concern, Ms. Campos said the 20 signs in Downtown that have never completed amortization are near completion. 4. Executive Director (Assistant City Manaaer) verbal reports - None. 5. Other Business Discussion ensued in regard to fayade grants and concern was expressed in telling property owners how to develop their property. It was felt the opening of the bridge would be an incentive to property owners. CRA Ex-Officio Member and DDB (Downtown Development Board) member Dwight. . Matheny said Cleveland Street is the target zone for streetscape and other improvements"and - felt it important to keep some grant funds for this area. 6. Adiourn The meet~ng..adlourned~t 2:06 p.m. " . "'-.-' ", Attest: 0#.: / jt..~. .., Cit lerk - ' Community Redevelopment Agency 2004-09-13 6