09/13/2004
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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Adiourn
The meet~ng..adlourned~t 2:06 p.m.
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Attest:
0#.: / jt..~. ..,
Cit lerk - '
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