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04/18/2005 . . . COMMUNITY REDEVELOPMENT AGENCY CITY OF CLEARWATER April 18, 2005 Present: Frank Hibbard William C. Jonson Hoyt P. Hamilton Carlen Petersen John Doran Chair Vice-Chair/ Trustee Trustee Trustee Trustee Also present: William B. Horne II Garry Brumback Pamela K. Akin Cynthia E. Goudeau Brenda Moses. . City Manager Assistant City Manager City Attorney City Clerk Board Reporter The Chair called the meeting to order at 9:39 a.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. Approval of Minutes - 1/18/05 Trustee Hamilton moved to approve the minutes of the January 18, 2005, meeting, as recorded and submitted in written summation by the City Clerk to each Trustee. The motion was duly seconded and carried unanimously. 1. . Accept the selection committee recommendation of Lambert Advisory. LLC and PRG Real Estate Research as the top ranked team from responses received to RFP #11-05 for a Downtown Clearwater Market StudY. approve the scope of work for the Market Study at a cost of $35.000 and accept a transfer of $35.000 from the DDB (Downtown Development Board) to fund this study. The current redevelopment activity in Downtown Clearwater is an indicator of the positive market potential for this area. However, a true understanding of the existing and future residential, retail, and office markets are needed in order to successfully implement redevelopment strategies. This. concept was discussed at the strategic planning session of the Main Street Joint Venture meeting in July 2004 and a downtown market study was identified as a short-term project for FY 04-05 in the Downtown-Gateway Strategic Action Program. CRA (Community Redevelopment Agency) staff proposed the downtown market study as a joint project between the CRA and the DDB. The DDB unanimously approved including this project in their annual FY 2004-05 budget process. A line item was established within the budget entitled Market Study in the amount of $35,000. In January 2005, RFP #11-05 Downtown Clearwater Market Study was issued to select a consultant to complete a downtown market study. The goals of the market study are to: 1) Identify Downtown Clearwater's existing economic base; 2) Identify the market potential for future redevelopment within Downtown Clearwater; 3) Identify opportunities for projects that would draw visitors and users from throughout the Tampa Bay Region to Downtown Clearwater; 4) Identify potential residential supporting uses for Downtown Clearwater; and 5) Identify recommendations and next steps based on the baseline data collected. Community Redevelopment Agency 2005-04-18 1 . The Market Study is the critical first part in a multi-part analysis of downtown. The final Market Study report will be utilized to identify the future direction of redevelopment efforts, recruitment strategies and to assist the City/CRA and its partners in refining short and long-term strategies for the redevelopment and revitalization of Downtown Clearwater. The CRA received nine proposals in response to RFP #11-05 Downtown Clearwater Market Study. The Selection Committee, composed of Geraldine Campos, Interim CRA Executive Director, Bob Fernandez, Chair of the DDB, Doug Matthews, Public Communications, and Laura St. Clair, Colliers Arnold, met on March 11, 2005 to review the proposals. The Selection Committee recommends to the CRA the selection of the top ranked team of Lambert Advisory, LLC and PRG Real Estate Research to conduct this work. The DDB Chairman and Treasurer will provide the authorization for disbursement for an "interdepartmental transfer of funds" debiting account code #0182-09411-530100-552-000-0000 (Other Contractual Services) and crediting the CRA revenue account code #0188-00000- 381782 (Inter-Fund Transfer from the DDB). The transfer may take place on or before the date of the contract with the RFP respondent chosen by the selection committee and the CRA. In response to questions, Economic Development and Housing Director Geri Campos said current and future markets for Downtown are part of the study. Downtown is the focus and anyone in the potential market will be included in the analysis. A request was made for examples of finished work products. . Trustee Jonson moved to accept the selection committee recommendation of Lambert Advisory, LLC and PRG Real Estate Research as the top ranked team from responses received to RFP #11-05 for a Downtown Clearwater Market Study, approve the scope of work for the Market Study at a cost of $35,000 and accept a transfer of $35,000 from the DDB (Downtown Development Board) to fund this study. The motion was duly seconded and carried unanimously. 2. Accept selection committee recommendation of Wallis Murphy Boyinaton Architects. Inc.: Swan Development Advisors. Inc. and Wilson Miller as the top ranked team from responses received to RFP #13-05 for a Cleveland Street Facade Desian Analysis. approve scope of work for the Facade Desion Analysis ata cost of $50.000. and a~cept a transfer of $50.000 from the Downtown Development Board to fund this proiect. A major component of downtown revitalization, the Cleveland Streetscape project is an infrastructure project that will address improvements to the public realm along Downtown's "Main Street." The next step to complement the new Cleveland Streetscape project is to encourage the adjacent private property and business owners to improve the facades of their buildings. This concept was Qiscussed at the strategic planning session of the Main Street Joint Venture meeting in July 2004 and a fac;ade design analysis project was identified as a short- term project for FY 04-05 in the Downtown-Gateway Strategic Action Program. CRA staff proposed the fac;ade design analysis for Cleveland Street as a joint project between the CRA and the DDB. The DDB unanimously approved including this project in their annual FY 2004-05 budget process. A line item was established within the budget entitled Facade Design Analysis in the amount of $50,000. . Community Redevelopment Agency 2005-04-18 2 . In January 2005. theCRA released a Request for Proposais to select a consultant to complete a fac;ade design analysis for Cleveland Street. The goals of the analysis are to: 1) Identify opportunities for fac;ade improvements along Cleveland Street, from Osceola Avenue to Myrtle Avenue, in Downtown Clearwater; 2) Prepare illustrative concepts of fac;ade improvements to selected buildings; and 3) Establish a "vision" for building design and character for Cleveland Street, from Osceola Avenue to Myrtle Avenue, reflective of Clearwater's unique character. The final Fac;ade Design Analysis will be utilized to identify and illustrate the form and design of future building renovations and redevelopment along Cleveland Street. The analysis will also serve as a basis for the improvement of the CRA's Fac;ade Improvement Grant Program. The CRA received four proposals to RFP #13-05 Cleveland Street Fac;ade Design Analysis. The Selection Committee, composed of Geraldine Campos, Interim CRA Executive Director, Bob Fernandez, Chair of the DDB, Gina Clayton, Planning Department, and Laura St. Clair, Colliers Arnold, met on March 10, 2005 to review the proposals. The Selection Committee recommends to the eRA the selection of the top ranked team of Wallis Murphy Boyington Architects, Inc., Swan Development Advisors, Inc., and Wilson Miller to conduct this work. . The DDB Chair and Treasurer will provide the authorization fer disbursement for an "interdepartmental transfer of funds" debiting account code #0182-09411-5301 00-552~000-OOOO (Other Contractual Services) and crediting the CRA revenue account code 0188-00000-381782 (Inter-Fund Transfer from the DDB). The transfer may take place on or before the date of the contract with the RFP respondent chosen by the selection committee and the CRA. In response to a question, Ms. Campos said the analysis would consider only the fronts of buildings. Historic preservation is not a consideration with this project. As soon as the project is approved, the kick-off meeting will be scheduled along with public meetings. In response to a concern regarding costs, Ms. Campos said the other bids came in with the same amount. She noted architectural drawings are expensive. In response to a concern, Ms. Campos said the team selected has a very good sense of the economic viability of the businesses and has requested AutoCAD drawings of the streetscapes. The analysis will. show preferred designs and elevations for Cleveland Street's revitalization and create a vision of what Cleveland Street could look like. Several alternatives will be provided. A suggestion was made to engage younger architects or architectural students to participate in the project. Ms. Campos said there is a young architect on the team. She said staff wants this project to be a good tool for property owners, something economically realistic. Trustee Petersen moved to accept the selection committee's recommendation of Wallis Murphy Boyington Architects, Inc.; Swan Development Advisors, Inc. and Wilson Miller as the top ranked team from responses received to RFP #13-05 for a Cleveland Street Fac;ade Design Analysis, approve scope of work for the Fac;ade Design Analysis at a cost of $50,000, and accept a transfer of $50,000 from the Downtown Development Board to fund this project. The motion was duly seconded and carried unanimously. . Community Redevelopment Agency 2005-04-18 3 . 3. Approve professionai services contract from Swan Deveioprnent Advisors. Inc. in the amount not to exceed $7.750. to conduct an analysis of the future tax increment that will be aenerated in the oriainal and expanded CRA boundaries and the appropriate officials be authorized to execute same. This item was puiled by staff. 4. Appoint Trustees Carlen Petersen and John Doran as ex-officio members of the Downtown Development Board. Trustee Hamilton moved to appoint Trustees Carlen Petersen and John Doran as ex- officio members of the Downtown Development Board. The motion was duly seconded and carried unanimously. 5. Deny request for an additional time extension of "Aareement of Development and Disposition of Property IMR Site II" located at 1180 Cleveland Street. . The CRA approved the original Development Agreement with IMR (Information Management Resources, Inc.) on October 27, 1998, for the purchase of the approximate 1.23- acre parcel (site) on the north side of Cleveland Street in the amount of $131,770. IMR sold the Site on March 10, 2000, to Paul Simone or assignees (Buyer) for the proposed hotel development. On April 12, 2000, the Buyer assigned all rights to S&P who assumed all of IMR's obligations under the Development Agreement. As a result, the Development Agreement was amended at the request of S&P Properties LC (S&P) to allow the construction of 55 hotel rooms, as described in the amended Development Agreement. In order to obtain the incentive, that is payment of impact fees, the project was required to commence by October 2003. Additionally, the Agreement provides that if the project does not commence by October 2003, the developer is required to pay $35,000 to the CRA. The $35,000 represents the difference between the purchase price of the site payable pursuant to this agreement and the estimated fair market value of the site. The Developer is requesting a 12-month time extension. This is the third request for an extension of time by S&P. A 12-month extension was granted in October 2003. On October 18, 2004, the CRA again extended the timeframe for commencement of the project through April 30, 2005. These prior amendments were requested because of the downturn in the tourism economy due to the events of September 11, 2001, and the fact that IMR was purchased by CGI (who has since sold the building to CRUM Services). During the last several years, the developer has been seeking interest for a joint venture to develop the property. A hotel and office condominiums were areas that the developer explored that did not work out. S&P currently has the property listed with Keller Williams, a national real estate firm whose commercial division is trying to locate a prospect for the site. If the commencement requirement of the Development Agreement is not extended, the developer is in default of the agreement and shall pay the eRA $35,000. Additionally, the CRA will not be obligated to pay impact fees for the project. The payment of impact fees and sale of the property for "fair value" as opposed to fair market value are CRA incentives for the timely redevelopment of the property. The commencement date has been shifted from October of 2003 to October of 2004 to Apiil of 2005. Staff sees no benefit to the CRA in extending the commencement date for the project. Staff recommends that the time extension be denied. . Community Redevelopment Agency 2005-04-18 4 . Andre Perone, S&P Properties, reviewed the history of the project. He said several months were spent trying to obtain the Goodyear site. The events of 9-11 froze financing in the hotel industry. He said they have been looking for the right prospect and noted two market studies were done on this project. S&P has been aggressively looking for an opportunity for the site. He requested the CRA's indulgence and a 12-month extension. City Attorney Pam Akin said when the CRA originally entered into this agreement, incentives were offered to the developer. The property was sold to the developer for fair value at the time. She said if the extension is not granted, the agreement does not terminate until 2008 but the incentives do. In response to a question, Mr. Perone said the market study done 8 months ago was limited to a hotel. A question was raised if the City has done everything expected of them and Mr. Perone responded nothing is required from the City at this point. He said the property was purchased from IMR for fair market value. It was noted the City removed a structure at its own expense on the property. Mr. Peron said the current agreement includes incentives and creates the opportunity to market the property. He said they would lose the impact fee waiver, if the extension is not granted. In response to a question, Ms. Akin said staff determined the estimated impact fees for a hotel were not insignificant. Mr. Peron said his firm passed on the opportunity for lower priced motels at this site in an effort to get the "right fit." . Discussion ensued in regard to obtaining a "flag" and it was remarked it is almost impossible to find a flag for a 55-room hotel. In response to questions, Ms. Akin said the $35,000 is a repayment to the City for non- performance of the agreement. She said the developer changed the original plans for a conference facility with suites to the development of a hotel on the site. Discussion ensued and concern was expressed the agreement was made 7 years ago and has been extended twice. Support was expressed in having the developer come back and work out a new proposal. A question was raised if the extension is denied whether the developer could come back with a new proposal. The City Attorney said the development agreement would stay in place and the developer would be able to request an amendment based on a new project and ask for additional incentives. The developer would still have to pay the $35,000 for being in default of the original agreement. Trustee Doran moved to deny the request for an additional time extension of the "Agreement of Development and Disposition of Property IMR Site II" located at 1180 Cleveland Street and that $35,000 is due and payable to the City for default of the original development agreement, with the understanding the developer may come back and request an amendment to the agreement and additional incentives based on a new project. The motion was duly seconded and carried unanimously. . Community Redevelopment Agency 2005-04-18 5 . DDB (Downtown Development Board) member Bob Fernandez said the DDB is planning a trip to Lakeland to see a redevelopment project that has been completed. He said he supports the fac;ade analysis and market study. 6. Executive Director (Assistant City Manaaer) verbal reports Ms. Campos said the City received environmental clearance from the EPA (Environmental Protection Agency) for the Mediterranean Village project. 7. Other Business Trustee Jonson said there was a positive side to the Downtown Survey results and encouraged the DDB, eRA. and Mainstreet Committee to continue (0 push for small improvements in the Downtown. 8. Adiourn The meeting adjourned at 10:34 a.m. 4~ ;Y~u/ ~ir . ' Community Redevelopment Agency A~st: .. .... ,~~, If- . .... City@erk -. · . . .o~_ - . Community Redevelopment Agency 2005-04-18 6