01/16/2007
COMMUNITY REDEVELOPMENT AGENCY MEETING MINUTES
CITY OF CLEARWATER
January 16, 2007
Present: Frank Hibbard
Carlen Petersen
J.B. Johnson
William C. Jonson
John Doran
Also Present: William B Horne II
Garry Brumback
Rod Irwin
Pamela K. Akin
Cynthia E. Goudeau
Rosemarie Call
Chair/CRA Trustee
CRA Trustee
CRA Trustee
CRA Trustee
CRA Trustee
City Manager
Assistant City Manager
Assistant City Manager/CRA Executive Director
City Attorney
City Clerk
Management Analyst
The Chair called the meeting to order at 8:30 a.m. at City Hall
To provide continuity for research, items are in agenda order although not
necessarily discussed in that order.
2. Approval of Minutes
2.1 Approve the minutes of the December 12,2006, Community Redevelopment AQency
MeetinQ as submitted in written summation by the City Clerk.
Trustee Petersen moved to approve the minutes of the regular meeting of December 12,
2006, as recorded and submitted in written summation by the City Clerk to each
Councilmember. The motion was duly seconded and carried unanimously.
3. CRA Items
3.1 CHIP Campus Discussion
CRA Executive Director Rod Irwin said CHIP (Clearwater Homeless Intervention Project)
is seeking assistance from the City and policy feedback from the CRA.
Police Chief Sid Klein, CHIP President, said increasing need for transitional and
affordable rental units has created need to expand current transitional housing program. CHIP
is under contract to purchase the "Car-Pro" property, 1359 Cleveland Street, in hopes of
developing the first in a series of modular components that would include transitional housing
and commercial/retail opportunities in the Gateway District. The CHIP Police Substation will
relocate to this facility. The CHIP administrative offices will relocate to the space vacated by the
police department, providing significant cost savings.
Turnstone Properties representative Nina Banzoni reviewed the proposed campus
expansion plan and funding.
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Mr. Irwin said the commercial/retail component will provide CHIP an income stream.
CHIP is seeking support to acquire the Car-Pro property and $25,000 from the CRA for
Brownfield Assessment.
Discussion ensued. Concerns were expressed regarding community impact,
commercial component, and site clean up.
In response to questions, Finance Director Margie Simmons said the portion of the
property that is leased as affordable housing will be tax exempt, the commercial portion will be
taxable.
Trustee Petersen moved to approve the concept of the Car-Pro and brownfield
components. The motion was duly seconded and carried unanimously.
3.2 Approve a Development AQreement between the Community Redevelopment AQency
(CRA) and Clearwater Centre, LLC, concerninQ the "Clearwater Centre" proiect, 1100 Cleveland
Street, delineatinQ the terms and conditions for the provision of certain economic assistance by
the CRA.
The purpose of this Development Agreement is to secure economic assistance through
the Community Redevelopment Agency (CRA) to increase the economic feasibility of a project
which supports the implementation of the City of Clearwater's "District Vision" for the
revitalization of the Downtown Core; and to further the implementation of the Downtown
Redevelopment Plan by the development and construction and operation of the project to
enhance the quality of life, increase employment and improve the aesthetic and useful
enjoyment of the downtown.
Clearwater Centre, LLC, is developing the "Clearwater Centre" project located at 1100
Cleveland Street. The project is a mixed-use development with a maximum of 88 residential
condominium units; approximately 214 private parking spaces; not more than 15,498 square
feet of ground floor retail space; and, 6,000 square feet of office space. The Community
Development Board issued a Flexible Development Approval on July 18, 2006.
The primary business terms of the Agreement are: CRA will establish a project account
in the amount of $1,040,000 to provide payment of the following project expenses: (1) CRA
payment of project impact fees, as they become due, not to exceed $425,000; (2) CRA payment
of certain water and sewer utility relocation costs, as they become due, in an amount not to
exceed $260,000; (2) CRA payment of project streetscape and landscape improvements, upon
completion, following the Downtown Streetscape Design, in a total amount not to exceed the
lesser of $500,000 or the amount of funds remaining in the project account after payment for the
items in (1) and (2) above. The total payments shall not exceed $1,040,000. A first quarter
budget amendment will establish a new CRA project "Clearwater Centre - 1100 Cleveland", in
the amount of $1 ,040,000 with the transfer of funds from project 315-94714, Downtown
Redevelopment. Direct payment of the project assistance is indicated in this case to reduce the
equity requirement of the developer, thus facilitating his ability to access construction financing,
and allowing this "pivotal" redevelopment project to move forward as expeditiously as possible.
Successful completion of a mixed-use project at this location will materially support the
Downtown redevelopment program and catalyze further redevelopment in the area.
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Since this assistance is a direct payment of project expenses by the CRA, with
disbursement to take place prior to project completion and commencement of TIF receipts by
the Agency, the grant has been secured by a performance mortgage (lien) on the adjacent
owned property (1130 Cleveland Street) with performance deadlines and provision for interest
accrual should the project not proceed within the performance deadlines. In such case interest
shall be prime plus 100 basis points. The performance mortgage shall be in a second position to
a primary mortgage of $770,000 on the property held by the Chamber of Commerce. An
independent appraisal of the property has established value sufficient to fully collateralize the
CRA's interest in the property. Under the terms of the agreement, construction must commence
no later than June, 2007 and be completed within 24 months from that date. Based upon the
recent TIF Study commissioned by the Agency, the project is estimated to generate between
$538,000 in tax increment funds (TIF) in the first full year of assessment (2009), based upon an
estimated construction cost of $46,000,000. Using the assumptions in the Swann TIF study, the
project is estimated to generate $6,471,785 in TIF by the expiration of the TIF authorization in
2019.
Clearwater Centre, LLC representative Mr. Guy Bonneville reviewed plans and timelines
of the project. Pre-sales are currently up to 12%; need 50% to meet lender requirements and
begin construction. Mr. Bonneville is working with an investor who is willing to purchase 30% of
the units if the pre-sale stipulation is not met.
CRA Executive Director Rod Irwin said construction must start in June, meet
performance standards, and be completed within 24 months.
Discussion ensued. Concerns were expressed regarding liquor sales, public art
contribution, and parking. In response to questions, Mr. Irwin said the agreement was crafted to
not allow a bar but allow flexibility to sell liquor with no consumption on premises. Mr.
Bonneville noted the entire operation will be controlled by the Homeowners and Retail
Associations. Mr. Bonneville said design of project may contribute to the public art requirement;
overflow parking lot across the street will provide additional spaces for commercial use.
Trustee Johnson moved to approve a Development Agreement between the Community
Redevelopment Agency (CRA) and Clearwater Centre, LLC, concerning the "Clearwater
Centre" project, 1100 Cleveland Street, delineating the terms and conditions for the provision of
certain economic assistance by the CRA. The motion was duly seconded and carried
unanimously.
3.3 TIF Policy Discussion
CRA Executive Director Rod Irwin presented a draft regarding the use of TIF funds. The
policy is intended to meet three objectives: 1) establish a empirical basis for the allocation of TIF
funds to private and public development projects; 2) provide Board guidance to CRA staff on the
utilization of TIF funds generated in the CRA; and 3) allow the public and development interests
to understand the process and bases upon which decisions to allocate TIF funds will be made
by the CRA.
Discussion ensued. Concerns expressed regarding profit margins, project assessments,
infrastructure improvements, and affordable housing. Council will provide City Manager Bill
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Horne with specific suggestions during individual weekly meetings and the policy will be brought
back for Trustee approval.
4. Other Business
Balk Proiect
City Attorney Pam Akin said Fairway Development Group is interested in purchasing the
Balk Project and is requesting to extend termination for two weeks to allow due diligence.
In response to questions, Fairway Development Group representative Robert Morey said
he is intrigued by redevelopment efforts in the area and believes Balk is a viable project. He
has provided staff with financial information. Mr. Morey reviewed projects developed in the
Sarasota area.
Trustee Jonson moved to extend termination for two weeks to allow Fairway
Development Group solely for due diligence and consideration of assignment. The motion was
duly seconded and carried unanimously.
5. Adjourn
The meeting adjourned at 10: 16 a.m.
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