03/30/2015Monday, March 30, 2015
1:00 PM
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
City Hall Chambers
Community Redevelopment Agency
Meeting Agenda
March 30, 2015Community Redevelopment Agency Meeting Agenda
1. Call To Order
2. Approval of Minutes
2.1 Approve the minutes of the March 16, 2015 CRA meeting as submitted in
written summation by the City Clerk.
3. Citizens to be Heard Regarding Items Not on the Agenda
4. New Business Items
4.1 Approve lease for the creation of a community garden at the NW portion of the
former Economy Inn site in the East Gateway District and authorize the
appropriate officials to execute same.
5. Trustee Discussion Item
5.1 Discuss April 13, 2015 Agenda for CRA Joint Meeting with ULI Stakeholders
6. Adjourn
Page 2 City of Clearwater Printed on 3/30/2015
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#15-1156
Agenda Date: 3/30/2015 Status: Agenda ReadyVersion: 1
File Type: MinutesIn Control: Community Redevelopment Agency
Agenda Number: 2.1
SUBJECT/RECOMMENDATION:
Approve the minutes of the March 16, 2015 CRA meeting as submitted in written summation
by the City Clerk.
SUMMARY:
APPROPRIATION CODE AND AMOUNT:
USE OF RESERVE FUNDS:
Page 1 City of Clearwater Printed on 3/30/2015
Community Redevelopment Agency Meeting Minutes March 16, 2015
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
Meeting Minutes
Monday, March 16, 2015
1:00 PM
City Hall Chambers
Community Redevelopment Agency
Page 1 City of Clearwater Draft
Community Redevelopment Agency Meeting Minutes March 16, 2015
Roll Call
Present 4 - Chair George N. Cretekos, Trustee Doreen Hock-DiPolito, Trustee
Jay E. Polglaze, and Trustee Bill Jonson
Absent 1 - Trustee Hoyt Hamilton
Also Present - William B. Horne II - City Manager, 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 for research, items are listed in agenda order although not necessarily
discussed in that order.
Unapproved
1. Call To Order – Chair Cretekos
The meeting was called to order at 1:11 p.m. at City Hall.
2. Approval of Minutes
2.1 Approve the minutes of the December 1, 2014 CRA meeting as submitted in written
summation by the City Clerk.
Trustee Hock-DiPolito moved to approve the minutes of the
December 1, 2014 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 ULI Recommendation 34 - CRA Bond Issuance
The recently completed Urban Land Institute (ULI) Advisory Panel Report
indicated the CRA should consider a more aggressive approach to the bonding
of TIF (Tax Increment Financing) revenue to “leverage an income stream to
generate significant capital to invest in redevelopment projects.” The ULI Panel
further concluded that the CRA “could generate $18 million to $20 million if the
CRA is willing to accept some risk.” Page 2 City of Clearwater Draft
Community Redevelopment Agency Meeting Minutes March 16, 2015
As with a recommendation of this nature, it requires a sensitivity analysis to
identify pros, cons, risk and reward to the issuing agency. To that end, CRA
staff felt it was timely and appropriate to have the CRA Financial Advisor, with
input from Bond Counsel, review the recommendation from a local financial
and operational conditions perspective.
CRA and Finance staff would offer the following summary
comments/considerations:
1. The issuance of TIF bonds is an established and legal technique for the
redevelopment toolbox under the appropriate conditions and risk
evaluations.
The most frequent redevelopment scenario lending itself to TIF bond
issuance is large parcel redevelopment where additional, significant
ratables are projected to offset and underwrite the added debt service.
The argument for issuance of debt is also strengthened by a strong
market condition whereby the proposed development has a strong
likelihood of financial success, thus assuring the revenue stream to
satisfy debt services.
Use of TIF bonds for other commercial projects, as part of a
redevelopment package of incentives, is entirely appropriate, as long as
the CRA recognizes and acknowledges the risk profile of the credit
supporting the debt service. ULI acknowledges this risk/reward
consideration in their report. Should the project not materialize, or fail to
generate sufficient additional funds to support debt service, the CRA
must be prepared to carve out the debt service from existing CRA
funds. It then also becomes an opportunity cost calculation vis-à-vis
other CRA programmatic demands.
Nonetheless, it is quite possible that catalyzing a project like The
Strand could require a significant CRA financial participation to make
the numbers work but with a much higher risk to the CRA than has
been the comfort level of the Board to date. This willingness to accept a
greater risk tolerance seems to be the thrust of the ULI report on
bonding. Examples, in a case like The Strand, could involve traditional
equity investment as a mezzanine tranche; balloon loans repayable
upon refinance with accrued interest; or property acquisition and
discounted re-sale to a third party, etc. All intended to make the
numbers work for a private developer to redevelop the parcel.
TIF bond issuance could also be useful for a large public capital need
which could not be underwritten by the CRA annual revenues. CRA
has not faced that situation in the recent past, but projected large-scale
investments in Coachman Park, Intermodal Center and/or a Downtown
Parking garage could present such a condition. A dedicated debt
service from TIF revenues would be required.
2. To date, CRA has been able to underwrite large financial transactions
through loans from the City, thus avoiding the interest premium and
Page 3 City of Clearwater Draft
Community Redevelopment Agency Meeting Minutes March 16, 2015
costs of issuance of a bond issue. The interest rate differential between
the borrowing of city funds and an unsecured bond issue would be in
the 200-300 basis point range, thus saving the CRA 2%-3% interest
payments and freeing up TIF revenues for other CRA programs.
For example, the CRA financed the $3.4 million Economy Inn
acquisition with a loan from the Central Insurance Fund at the
backward-looking interest rate equivalent to the investment return on
money market investments by the City. The interest rate spread and
avoidance of issuance costs were significant.
Use of this internal financing strategy has proven to be preferable
where conditions allow. Staff would consider a bond issuance only
after internal opportunities have been fully vetted.
3. ULI indicated the CRA could issue $18-20 million in TIF bonds. At the
same time, the Financial Advisor’s White Paper concludes that this
level of issuance could only be supported by TIF revenues if annual
collections reached $2.5 million and the CRA committed 100% to TIF
debt service.
However, TIF revenues (City + County-DDB) over the past 10 years
have averaged only $1.7 million, with annual collections varying
between $1 million and $2.3 million. The CRA Financial Plan anticipates
only modest TIF growth over the foreseeable future. The take away is
that the $20 million ULI issuance opportunity projection is unlikely to be
realizable and the wide fluctuation in collection history over the past
economic cycle warrants caution. Furthermore, the debt service
availability must be reduced by the $500,000-$600,000 needed to
underwrite the CRA operating budget and expenses.
Without a significant change in the CRA Work Program, it appears that
only $300,000-$500,000 would be available for debt service, resulting in
a bond issuance of $2 million-$3M million if the full County share is
available. Without the certainty of the County share, a much smaller
issuance would be feasible. Furthermore, a bond issuance utilizing the
County share would require County concurrence as to purpose and
use.
As recommended in the White Paper, no bond issuance should include
County share availability until the length/terms of extension of the
County share part 2019 is determined.
4. As highlighted by the Financial Advisor, the CRA likely has the ability to
issue bonds at a competitive rate, with a pledge of TIF tax collections
but without a backstop or credit guarantee from the City. Nonetheless,
the Financial Advisor prudently raises the caution that it is
indeterminate what effect a default by the CRA would have on the
broader credit position of the City.
The City/CRA Financial Advisor will be available to address
questions at the March 16 CRA meeting. Page 4 City of Clearwater Draft
Community Redevelopment Agency Meeting Minutes March 16, 2015
In response to questions, Stifel, Nicolaus, and Company Financial Advisor
Matthew Sansbury said the charts included in the White Paper do not
include data from the City of Clearwater but rather depicts the
TIF issuance ratings for other cities nationwide. The City has not done a TIF
issuance. Mr. Sansbury said bond insurance is no longer available. TIF
provides a fine deal. There is more stability when the developer has a project
in hand and there is an agreement. Stifel does more TIF deals
than anyone in the country. Without a city backing, one can get a BBB
or low A TIF rating; with 5-6% interest rate range in today's market. With
a city backing, the interest rate could be 3.5% or lower. Assistant City
Manager Rod Irwin said Economic Development is finishing the
marketing materials that identifies key city parcels and underdeveloped
private parcels. The marketing initiative will include advertising in
Florida Trend magazine and another magazine with nationwide
distribution. Staff has shared the TIF assumptions with the Clearwater
Marine Aquarium. The CMA is requesting to use the County TIF in a
different way: they are interested in using a stream of revenue to issue
debt for a discounted revenue stream. The City Attorney said if the
County allows the use, the CRA will still have the ultimate decision.
Pinellas County has some control over how the TIF funds are used. Mr.
Irwin said most of the City's TIF is used for operating and community
policing expenses, which are not bondable expenses. The CMA wants
to assume the county TIF funds in 2016, $650,000 for twenty years,
which will require an early commitment from the County on the TIF
extension through 2034. Mr. Irwin said this requires the County
Commission to make a decision on whether to allow, or not, the use of
the TIF funds for a discounted cash flow. If allowed, some of the county
TIF funds earmarked by the CRA for current projects will not be
available. The City Attorney said the CMA has not come to the CRA
for TIF funds.
Mr. Irwin said staff has begun the TIF extension process and is half-way
through. Staff has not received a definitive request from the CMA for TIF
funding. The TIF extension matter will not come back to the CRA until
the CMA request has been clarified as it may impact the TIF extension. The
TIF extension would be from 2019 to 2034.
In response to questions, Mr. Irwin said the state allows TIF for thirty
years. The City's portion of the TIF is approximately $850,000. The
City has obligated approximately $500,000 for operating costs and
$150,000 for community policing. Mr. Irwin said the City may bond up to
$3 million without a major change in the current program direction,
which includes the projects identified in the 5-year financial forecast and
East Gateway Action Plan. The two major portions in the county TIF
portion are the debt service for the Economy Inn, which will be paid off
this year, and the East Gateway Plan Implementation. The City
Page 5 City of Clearwater Draft
Community Redevelopment Agency Meeting Minutes March 16, 2015
Manager said staff typically would not bring a high risk option; if the
Trustees are inclined to riskier options, direction must be given.
Staff was directed to provide information identifying the properties within
the CRA that are tax-exempt. It was suggested that staff update council
with status of marketing efforts and include updates on social media.
5. Adjourn
The meeting adjourned at 1:45 p.m.
Chair
Community Redevelopment Agency
Attest
City Clerk
Page 6 City of Clearwater Draft
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#15-1097
Agenda Date: 3/30/2015 Status: Agenda ReadyVersion: 1
File Type: Action ItemIn Control: Community Redevelopment Agency
Agenda Number: 4.1
SUBJECT/RECOMMENDATION:
Approve lease for the creation of a community garden at the NW portion of the former
Economy Inn site in the East Gateway District and authorize the appropriate officials to
execute same.
SUMMARY:
On December 1, 2014, the Clearwater Community Redevelopment Agency (CRA) approved
the request submitted by Mr. Howard Warshauer, which he made on behalf of the East
Gateway Community Garden Steering Committee (Steering Committee), to lease a portion of
the former Economy Inn property. The request, which included the CRA -owned parcels at 20
N. Betty Lane, 1273 Grove Street, and 1277 Grove Street, was for the creation of a
community garden on those premises.
The CRA approved the request and instructed staff to prepare a 3-year lease for the creation
of a community garden in the East Gateway community. Some of the items mentioned in the
Business Lease Contract (Lease) are the following:
·The Lease is between the CRA and the Clearwater Garden Club (an existing 501c3
non-profit organization);
·The Lease is for a 3-year period, and may be extended annually for 2 successive year
periods;
·The CRA may terminate the Lease in the event the CRA Board determines at a duly
constituted CRA Board meeting that the Leased Premises are needed for other
municipal purposes and provides the Clearwater Garden Club with 6-months notice of
such intended use;
·The Clearwater Garden Club may terminate this Lease at anytime upon 30 days
written notice to the CRA;
·The annual rent is $1.00 per year;
·The Leased Premises shall only be used as a community garden;
·All utilities shall be the sole responsibility of the Clearwater Garden Club;
·The Clearwater Garden Club shall install and maintain a fence along the south
boundary of the Leased Property;
·The Lease is not assignable and the Lease Premises cannot be sublet (other than for
the use of individual garden plots);
·All improvements shall be installed and maintained at the sole responsibility of the
Clearwater Garden Club;
·The Clearwater Garden Club is not allowed to add permanent or temporary bathroom
facilities on the Leased Premises;
·Parking is not allowed on the Leased Premises, however, parking is available along
Page 1 City of Clearwater Printed on 3/30/2015
File Number: ID#15-1097
local streets;
On February 15, 2015, the City Council adopted Ordinance 8654-15 on second reading,
approving amendments to the Clearwater Community Development Code regarding numerous
provisions, including Community Gardens. This ordinance addresses several items, including
storage, property maintenance, accessory structures, parking, trash, etc. Prior to applying for
a permit, the Clearwater Garden Club will provide a detailed site plan for review and approval
by the CRA Executive Director. The Clearwater Garden Club is planning to hold a
groundbreaking event on April 25, 2015, in conjunction with the East Gateway Business and
Neighbors Association (BNA) Neighborhoods Day celebration. They are also planning on
officially opening the community garden in August/September 2015.
Page 2 City of Clearwater Printed on 3/30/2015
CLEVELAND ST
GROVE ST N BETTY LN N FREDRICA AVE N LINCOLN AVE KENWOOD AVE EXHIBIT A
JB TM
03/10/2015
Map Gen By:Reviewed By:
Date:
Prepared by:Engineering DepartmentGeographic Technology Division100 S. Myrtle Ave, Clearwater, FL 33756Ph: (727)562-4750, Fax: (727)526-4755www.MyClearwater.com
CRA AGENDA ITEM: ID #14-723
²
N.T.S.Scale:
1273 Grove Street1277 Grove Street20 N Betty Lane
Document Path: V:\GIS\_Staff\Jim_B\Projects-Location Maps\Tom Mahony\CRA agenda item map2-new.mxd
REAR
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#15-1161
Agenda Date: 3/30/2015 Status: Agenda ReadyVersion: 1
File Type: Council Discussion
Item
In Control: Community Redevelopment Agency
Agenda Number: 5.1
SUBJECT/RECOMMENDATION:
Discuss April 13, 2015 Agenda for CRA Joint Meeting with ULI Stakeholders
SUMMARY:
APPROPRIATION CODE AND AMOUNT:
USE OF RESERVE FUNDS:
Page 1 City of Clearwater Printed on 3/30/2015