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07/18/2005 . . . COMMUNITY REDEVELOPMENT AGENCY MEETING MINUTES CITY OF CLEARWATER July 18, 2005 Present: Frank Hibbard Hoyt P. Hamilton William C. Jonson Carlen Petersen John Doran Chair/CRA Trustee CRA Trustee CRA Trustee CRA Trustee CRA Trustee Also present: William B. Horne II Garry Brumback Pamela K. Akin Geri Campos Cynthia E. Goudeau Patricia O. Sullivan City Manager Assistant City Manager City Attorney CRA Executive Director City Clerk Board Reporter The Chair called the meeting to order at 9:29 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 Trustee Jonson moved to approve the minutes of the May 31, 2005, meeting, as recorded and submitted in written summation by the City Clerk to each Trustee. The motion was duly seconded and carried unanimously. Cbmmunitv Redevelopment Aaencv Items: 1 - Update on status of neaotiations with Clearwater Development LLC. "Aequali (fka AmSouth). On February 13, 2004, the CRA (Community Redevelopment Agency) released a RFP/Q (Request for Proposals/Qualifications) to select a qualified developer to develop a multiplex movie theater in downtown Clearwater. On October 18, 2004, the CRA authorized the negotiation of a development agreement with Clearwater Development, LLC. for redevelopment of a 3.99-acre site known as the SuperBlock (consisting of AmSouth and adjacent sites). The proposed terms are for a redevelopment project with 245 condominium dwelling units, 87,800 square-feet of upgraded office space, 35,000 square-feet of new destination retail, a 55,000 square-foot first-run multiplex theatre, consisting of a minimum number of screens, 1 ,100 parking spaces consisting of 560 public spaces for office/retail/theatre parking and 540 private spaces for condominium parking. The 560 public spaces will be handled as follows: 360 to be operated by the CRA and purchased by the CRA at the actual cost per space, including a reasonable allocation of land and soft costs, not to exceed $25,000 per space, or $9-million, and 200 to be shared parking with the Office building for after-hours use to be operated by Acqua. The obligation of the CRA to issue bonds to purchase the parking spaces is contingent upon demonstration by the Developer of construction financing sufficient to complete Community Redevelopment Agency 2005-07-18 1 . construction of vertical infrastructure which will generate a present value of projected TIF (Tax Increment Financing) revenues calculated on the basis of the tax exempt insured borrowing rate of the CRA from the first date of projected TIF revenues through and including the year 2019. The financial obligations of the CRA also are contingent upon production of an enforceable agreement for the development and operation of a first run multiplex theatre. The payment shall be made at the time of issuance of Certificates of Occupancy for the parking spaces. These spaces will be located onsite and will be owned and operated by the CRA or its assignee, City of Clearwater With consent of the County, TIF revenues generated from the project shall be pledged to support a bond issue to cover the costs associated with the 360 public spaces within the parking garage. Should tax increment be available from this project during the term of this agreement, in excess of that required to repay the bond, the funds may be utilized to reimburse Acqua for: 1 )Road improvements to streets surrounding the site, 2) Streetscaping of Osceola and Ft. Harrison Avenues; 3) Relocation costs or off site costs paid by Acqua for water, sewer, stormwater, gas, electric and other utilities; 4) From the City portion of the TIF, impact fees for the retail and condominium component of the project, concurrency assessments, permit fees, and utility connection fees in connection with the project; 5) In the event the CRA is able to obtain County consent to bond TIF from the project for up to 20 years, proceeds shall be used in the following order: a) 360 public parking spaces to be owned by the CRA; b) streetscaping of Osceola and Fort Harrison; c) cost of relocation for water, sewer, stormwater gas, electric and other utilities; to the extent permitted by law, from the City portion of the TIF, impact fees for the retail and condominium component of the project, concurrency assessments, permit fees, and utility connection fees in connection with the project. . Acqua must maintain parking during construction for the operation of the existing office building, and anticipates approximately 150 spaces will be displaced. The CRA shall make a good faith effort to identify for Acqua convenient locations where temporary parking spaces may be made available and shall assist Acqua by identifying appropriate contacts and facilitating introductions where n~cessary. Acqua must have adequate space for parking of construction personnel during construction of the project. The Engineering Department shall work with Acqua to provide staging areas for construction, including the possibility of allowing contractor's trailers to stage on Laura Street during construction The CRA shall reimburse Acqua for impact fees attributable to the multiplex theater. Such reimbursement shall be prorated over the life of the Development Agreement and shall commence on the first anniversary of the issuance of the certificate of occupancy for the theater; provided however, that no reimburse shall be made unless the theater is in continuous operation during the year for which the reimbursement is sought. The CRA shall obtain any required approvals from the County for bonding of the TIF and shall modify the CRA plan, if necessary, to provide funding for the outlined commitments. CRA Executive Director Geri Campos reported the RFP/Q was issued following a study that identified a gap in the availability of nearby movie theatres. . Community Redevelopment Agency 2005-07-18 2 . Tim Baker, representative for Acqua, said the project was designed to be the cornerstone for revitalizing Downtown Clearwater. He said the development would be a catalyst, creating an environment where residents can work and play. He said the project reflects City direction and reviewed the evolution of the development's design. In response to a concern regarding the project's contemporary look, Assistant City Manager Garry Brumback said Downtown design guidelines encourage a diversity of design. Mr. Baker said the developer had reviewed City streetscapes, and determined the Chicago style, with its traditional detailing, is prevalent in Downtown Clearwater. He said the project's curved shapes and other architectural elements reflect a nautical design and connect with Clearwater's environment. Concern was expressed the high-rise element may be too contemporary for Clearwater. Mr. Baker said the goal was to create a piece of architecture that will not blend in with Gverything else. It was felt the modern design reflects the look of the Ma:n Library, and provides a nice transition across Osceola Avenue, while the street front fa9ades tie into older buildings on Cleveland Street. In response to a question, Mr. Baker said the AmSouth building would be re-clad with similar materials so that it blends with the development. Mark Krieger, Acqua representative, said the interior of the AmSouth building eventually would be refurbished. He said the development's architecture was designed to be timeless and elegant and street fa9ades will have a historic feel. He reported the development, as planned, would include 245 residential units, 55,000 square-feet of theatre space, and 35,000 square-feet of destination retail. . Kevin Burke, Acqua representative, said the TIF (tax increment financing) would pay for 360 of the project's 560 public parking spaces. After business hours, the extra parking spaces will be available for public use. He felt the theatre, which will have a minimum of eight screens, would attract people to Downtown businesses before and after movies. He estimated that construction of the retail portion of the project will cost $7-million, the theatre will cost $12- million, and upgrading the AmSouth building will cost $3-million. He said the theatre would be an important draw to Downtown after beach traffic no longer flows through Downtown. He said the benefit of the theatre would spill out into currently empty retail space on Cleveland Street and impact Downtown retail rental rates. In response tQa question, Mr. Burke said while AmStar wants a minimum of 10 screens; he anticipated the theatre would have between 10 and 12 screens. Ms. Campos said the City's study had determined 10 to 14 screens would be ideal. Concern was expressed that 360 parking spaces would be inadequate to meet the needs of a 2,200-seat movie theatre. Mr. Burke said the main hours of movie operation parking needs differ from business uses. He said . the Garden Street garage also has available parking. He reported AmStar recommends a 1:4 ratio of parking spaces to theatre seats but in downtown areas it is lower as some residents walk from their homes. In response to a question, Mr. Brumback said the development will provide minimal impact on removing asphalt and parking from the Downtown waterfront. Mr. Krieger said the proposed development is 377 feet tall and has 32 stories. He said as it was not economically feasible to incorporate underground parking, the development will have six floors of parking above grade. . Community Redevelopment Agency 2005-07-18 3 . . . Ms. Campos said the Downtown Plan proposes medians for the Osceola Avenue streetscape, but the design is not finalized. Mr. Baker said it is critical that retail venues captivate movie theatre crowds before and after shows for dinner and entertainment in order to alleviate parking and activate the streetscape. Ms. Campos reported the developer had requested the City consider bonding the project for a longer period of time to cover additional costs. Staff continues to negotiate the cost of the City's parking spaces. The developer claims that each parking space costs $25,000. Mr. Kreiger offered to provide a detailed study on the parking space costs. Concerns were expressed that the price is exceedingly expensive. Traffic engineering is comfortable with the proposed parking lot access off Ft. Harrison Avenue, as that road's Alternate 19 designation soon will be transferred to Myrtle Avenue. Concern was expressed regarding the proposed height of the building and Mr. Burke said the developer's study, which used some renderings of the project, found that 78% of those sUi'Veyed had no problem with the building's height. Ms. Campos said staff had not seen the survey. She reported the City's survey had found public support for mixed-use development with restaurants and retail. She said that type of development requires the construction of tall buildings. Support was expressed for taller buildings to meet public activity needs. The City Manager said staff purposely had not imposed a height limit. The City Attorney reported the CDB (Community Development Board), not the City Councilor CRA, will make the final decision regarding the structure's design and height. The Council will enter into a development agreement and decide if they want to approve incentives. Additional negotiations are still necessary. Support was expressed for a guaranteed number of screens, with a minimum of 10, showing first run movies for a certain period of time. It was noted trade-offs are necessary, as the project does not have the critical mass to pay for itself. The CRA will need to decide if a "subsidy" is acceptable. It was recommended that staff begin dialog with the County regarding support of the TIF. It was recommended the TIF from this development be used throughout the Downtown and that benefits of the project finance some Coachman Park improvements. It was felt that construction of a few catalytic projects is necessary to develop momentum. Ms. Campos said this development is a critical piece in the strategy for Downtown development and indicated TIF projections will be available next month. The City Attorney said while the City previously has not tied up the TIF for longer than five years, this longer. more substantial investment is proposed to bring a movie theatre to the Downtown. The City Manager said staff has been consistent with its redevelopment strategy. Mr. Brumback said this project represents the best opportunity to meet Council direction to get a movie theatre Downtown. It was noted if the theatre portion of this project dissolves, the TIF could be used elsewhere. The City Attorney reported the developer had requested the City invoke eminent domain to obtain control of a property, that is a cutout from the development. City Council will decide if they are willing to consider the request. Mr. Burke said stripping away too much of the condominium portion of the development will result in diminished TIF revenues. He said Acqua's study, independent from City efforts, will show how the tax base supports the TIF. The study will be completed this week Community Redevelopment Agency 2005-07-18 4 . The CRA recessed from 11: 19 to 11 :26 a.m. Executive Director (Assistant Citv Manaaer) Verbal Reports - None. Other Business - None. Adiourn The meeting adjourned at 11 :26 a.m. -:/~ ~ ~r / Community Redevelopment Agency ~. ~.City ... ... .. . . Community Redevelopment Agency 2005-07-18 5 '~-> <",