Loading...
06/02/2014 Community Redevelopment Agency Meeting Minutes June 2, 2014 City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 e d s w r' �mu Meeting Minutes Monday, June 2, 2014 1 :00 pm Council Chambers Community Redevelopment Agency Page 1 City of Clearwater Community Redevelopment Agency Meeting Minutes June 2, 2014 Present 5 - Chair George N. Cretekos, Trustee Doreen Hock-DiPolito, Trustee Jay E. Polglaze, Trustee Bill Jonson, and Trustee Hoyt Hamilton Also Present: Jill S. Silverboard -Assistant City Manager, Rod Irwin - CRA Executive Director/Assistant City Manager, Pamela K. Akin - City Attorney, Rosemarie Call - City Clerk, Nicole Sprague - Official Records and Legislative Services Coordinator To provide continuity in research, items are listed in agenda order although not necessarily discussed in that order. 1. Call To Order - Chair Cretekos The meeting was called to order at 1:08 p.m. at City Hall. 2. Approval of Minutes 2.1 Approve the minutes of the September 16, 2013 CRA meeting as submitted in written summation by the City Clerk. Trustee Jonson moved to approve the minutes of the September 16, 2013 CRA meeting as submitted in written summation by the City Clerk. The motion was duly seconded and carried unanimously. 3. Citizens to be Heard Regarding Items Not on the Agenda - None. 4. New Business Items 4.1 Approve Agreement for Development and Purchase and Sale of Property between the Community Redevelopment Agency of the City of Clearwater and Prospect Park Development, LLC, and authorize the appropriate officials to execute same. The City and CRA's redevelopment strategy emphasizes the creation of a significant residential concentration in and around the downtown core, to create the support for a retail and recreation destination environment in the Cleveland Street District. In addition, the City's Economic Development Strategic Plan calls for the growth/support of employment opportunities as part of the CRA's Technology District and its software/information technology industry cluster. The CRA views the development of the Cleveland Street and Prospect Lake Park site as a major opportunity to further these strategies by adding a mixed-use project that activates the street and creates living opportunities for the District's workforce. Page 2 City of Clearwater Community Redevelopment Agency Meeting Minutes June 2, 2014 The CRA released a Request for Proposals/Qualifications (RFP/Q) 12-13 on February 19, 2013 with the goal of selecting a qualified Development Team to successfully develop the 5.91+/- acre site located on Cleveland Street and Prospect Avenue in Downtown Clearwater, one block east of the Downtown Core. Four proposals were received on April 2, 2013. After review and ranking, the Selection Committee recommended the CRA negotiate an Agreement with the top-ranked Developer, Prospect Real Estate Group, LLC, on June 18, 2013. The proposal from Prospect meets all stated CRA objectives: • A market-rate, urban residential project with ground floor retail; • Ability to finance the proposed project; • Ability to construct the project in the timeframe requested; and • A purchase price of the site within market value. CRA staff and Developer proceeded with the preparation of a definitive Development and Purchase and Sale Agreement to set forth the respective duties and responsibilities of the parties pertaining to the conveyance of the Project Site, and the design, development, construction, completion, operation and maintenance of the Project. Project Scope The Project will consist of 257 market-rate rental dwelling units and approximately 10-15,000 sq. ft. of ground floor retail. Approximately 7 of these units will be Live=ork units fronting Cleveland Street, which will be composed of a retail/office space and a residential component. The project will have 300 parking spaces (1 stall per 1-bedroom unit and 1.5 stalls per 2-bedroom unit). The on-site parking lot will be open and made available to commercial patrons during daytime hours in addition to 694 available public parking stalls within '/4 mile from the site. In addition, there will be approximately 10,000 sq. ft. of accessory uses (exercise area, leasing office, and business center). The Developer is required to file a CDB application with a preliminary site plan and design consistent with their response to the RFP/Q, a copy of which will be attached to the Development Agreement as an exhibit, and agrees that any material changes to the preliminary site plan will be submitted to the CRA for approval. The site plan approved shall be the basis for the subsequent project plans and specifications, which shall be submitted to the CRA for review and approval as owner. Any material modification of the design and/or site plan by the CDB will require an amendment from the CRA. Business Terms The main business terms of the Development Agreement (DA) are as follows: 1. Purchase of Property • Developer will pay $2,500,000 for the site. Price will be adjusted by multiple of$10,000 if unit count falls below 242 units. Page 3 City of Clearwater Community Redevelopment Agency Meeting Minutes June 2, 2014 • $250,000 earnest money deposit to be escrowed as follows: $125,000 upon execution of Agreement after approval by CRA and $125,000 upon approval of CDB. • Developer to purchase property on or before the date which is 30 days after issuance of all building permits, but not later than October 31, 2014. • CRA has the option to repurchase site (subject to mortgages on the property) if Developer does not commence vertical construction 90 days following the 18 months vertical construction requirement (approx. 21 months after CRA approval of DA). Upon commencement of vertical construction, CRA's option to purchase terminates. 2. Performance Schedule: • Developer must file complete application to CDB within 3 months of CRA approval of DA. • Developer must file complete building permit applications within 6 months of CDB approval. • Developer must commence construction within 12 months of CRA approval of DA and vertical construction 6 months thereafter. • Developer must complete construction of the Project within 14 months of the commencement date. 3. Utility Relocation: • CRA agrees to reimburse Developer for the approved costs for the relocation of necessary utilities on site to allow Project to be constructed in an amount not to exceed $250,000. 4. Retail Incentive: • To facilitate the development and leasing of retail uses along Cleveland Street, CRA agrees to reimburse Developer $700,000 representing a portion of the permit/impact fees. 50% will be paid after the certificate of occupancy (CO) is issued for the first retail building and 50% will be paid after the CO of the second retail building. Developer will use these funds as Retail Support Funds to assist with the leasing and build out of the retail spaces. 5. Soil Conditions: CRA agrees to a credit of$725,000 at time of Closing for Developer to address the soil conditions (muck) found on the site. This generally represents the added cost for a timber pile foundation. Any/all costs above this amount will be the responsibility of the Developer. Cooperation of the City Page 4 City of Clearwater Community Redevelopment Agency Meeting Minutes June 2, 2014 The DA includes signature lines for the City to join the agreement in order to cooperate and support the CRA in meeting its obligations to transfer the ownership of the property to the CRA, grant easements over City property required for the construction of the Property, and enter into other agreements. HUD Stormwater Grant Reimbursement The City received a Housing and Urban Development (HUD) grant in the amount of $1,295,000 for costs associated with the land acquisition and development of a regional stormwater retention facility, which became the Prospect Lake project. Since a portion of the land is not needed for the stormwater project, it will transferred to the CRA to be sold to the Developer and the City/CRA will be required to reimburse HUD according to the conditions of the grant used to acquire the property. From discussions with HUD staff, CRA staff has estimated the amount to be reimbursed to HUD is $249,732. The final amount due HUD will be calculated after the closing of the Property to cover the expenses from the sale. TIF Estimate At an estimated project value of$24,000,000 (land and improvements after construction), the Project is estimated to generate $275,000 in tax increment (City, County and Downtown Development Board) in the first full assessment year the project is operational (estimated to be 2017). A total of$838,000 in TIF revenue is estimated to be generated through 2019. Economic Development and Housing Director Geri Campos Lopez provided a PowerPoint presentation. In response to questions, CRA Executive Director Rod Irwin said the development entails a residential condominium and one or more commercial condominium(s). They will retain ownership of both components. The City Attorney said the residential component is composed of rental apartment units. In the event of default by the Developer, the Lender is not obligated to complete the project, the City will have an opportunity to cure default. If the City chooses not to cure default, whoever purchases the property will have to come to the City if they do not build as provided in the development agreement. Ms. Campos Lopez said the TIF (Tax Increment Financing) may be broken down as follows: $23,000 for the DDB, $123,000 for the City, $128,000 for Pinellas County, assuming the rate at current millage rate. Staff met with HUD to discuss monies owed to the agency for portions of land being sold that were originally bought with agency grant funds. Staff has provided HUD a draft of the development agreement and description of closing process. The City Clerk said HUD would determine the amount owed by the City after the development agreement has been executed and the closing process completed. The Page 5 City of Clearwater Community Redevelopment Agency Meeting Minutes June 2, 2014 agency has not raised any concerns. The City Attorney said the Developer is responsible for site maintenance after closing. Staff was directed to provide information regarding parking spaces within a 114 mile of the project. Trustee Hock-DiPolito moved to approve Agreement for Development and Purchase and Sale of Property between the Community Redevelopment Agency of the City of Clearwater and Prospect Park Development, LLC, and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4.2 Provide direction on preparation and filing of County Tax Increment Financing (TIF) Extension Request. The Community Redevelopment Agency (CRA) and staff have discussed pursuit of early approval from the Board of County Commissioners for extension of the County portion of the CRA TIF revenues beyond the current mid-point review in 2019, to align commitment and expiration of the County TIF with the City CRA/TIF expiration in 2034. Much has been accomplished to date through the CRA/TIF, but challenges remain to be addressed moving forward to fully achieve the objectives of The Redevelopment Plan and Chapter 163. Long-range strategic planning needs would indicate that clarification of the availability and use of County TIF funds should be completed at the earliest practicable date. The CRA and staff have also periodically discussed requesting that the County remove the current use restrictions on the County portion of TIF (i.e., infrastructure, environmental remediation and land acquisition) to allow more strategic use of the County TIF in pursuit of the objectives of the Downtown Redevelopment Plan and accomplish the purposes of Chapter 163, Florida Statutes: 1) elimination of deterioration and/or blight. 2) tax base preservation/expansion for the municipality: and, 3) reduction of the inordinate demand for services from deterioration and underutilization of property in the redevelopment area, among other stated objectives. More flexibility in County TIF use would facilitate all these objectives. Additionally, the Clearwater Marine Aquarium has recently requested the CRA to pursue both an early determination of the county willingness to extend and modify use restrictions on the County TIF funds, as part of a request for financial participation by the City CRA in the Downtown Marine Aquarium project. Page 6 City of Clearwater Community Redevelopment Agency Meeting Minutes June 2, 2014 Staff has prepared a memorandum outlining the history of the CRA, conditions for a County extension application and the requirements the CRA will have to meet to pursue the extension. Staff seeks direction whether and when the County TIF extension/modification process should begin. It is estimated that a concerted, multi-departmental effort over a 2-3 month period will be required to prepare the documentation. Concurrent of the County to begin and complete an earlier review of the extension request will also be necessary. Staff seeks direction on the following questions- 1) Does the Board direct staff to seek agreement from the County for an earlier review and decision on the extension of the commitment of the County TIF until 2034? 2) Does the Board direct staff to begin the Work Program necessary to petition the County to extend the commitment of County TIF until 2034? 3) Does the Board direct staff to include in the county application a request to remove, or modify, the current county restrictions on use of the county portion of TIF? In response to questions, CRA Executive Director Rod Irwin said requesting Pinellas County for an earlier review of a city's TIF for an extension has not been done previously. Economic Development and Housing Director Geri Campos Lopez said the Department will coordinate with other city departments to ensure the data needed for the Work Program is collected in a timely manner. The Department is working currently on the incentives policy, which must be set aside until the TIF extension Work Program is completed. Assistant City Manager Jill Silverboard said proceeding with this project may impact the US Hwy 19 and East Gateway work plans. Ms. Silverboard said she had not discussed potential work plan impacts with Engineering. Mr. Irwin said, if directed by the Trustees, staff anticipates beginning the Work Program at the end of July since the Urban Land Institute study will take precedence in the coming weeks. The TIF Work Program may take approximately three months to complete. Mr. Irwin said the City will have to make a case for both the TIF removal and modification of the current restrictions on the use of county portion of the TIF. Staff will provide the Trustees a suggestion based on the data collected in the Work Program. It was suggested that staff provide monthly reports on the status of the Work Program. Trustee Polglaze moved to direct staff to seek agreement from the County for an earlier review and decision on the extension of the commitment of the County TIF to 2034. The motion was duly seconded and carried unanimously. Page 7 City of Clearwater Community Redevelopment Agency 5. Adjournment Meeting Minutes June 2, 2014 Trustee Hamilton moved to direct staff to begin the Work Program necessary to petition Pinellas County to extend the commitment of the county TIF through 2034. The motion was duly seconded and carried unanimously. Trustee Jonson moved to direct staff to include in the county application a request to remove, or modify, the current county restrictions on use of the county portion of TIF. The motion was duly seconded and carried unanimously. The meeting adjourned at 1:46 p.m. Page 8 City of Clearwater