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08/27/1992CITY COMMISSION SPECIAL WORK SESSION CITY OF CLEARWATER August 27, 1992 Present: Rita Garvey Mayor/Commissioner Richard Fitzgerald Vice-Mayor/Commissioner Lee Regulski Commissioner Sue Berfield Commissioner Arthur X. Deegan Commissioner Michael J. Wright City Manager Kathy S. Rice Deputy City Manager Jerry Sternstein Economic Development Director Cynthia E. Goudeau City Clerk The meeting was called to order at 1:30 p.m. at the East Library to receive presentations regarding development of the East End property. The City Manager indicated this is the result of a lengthly process to encourage downtown development. Two proposals were submitted: 1) Clearwater Public/Private Associates for redevelopment of the entire downtown area, and 2) MAS Properties for an apartment development on the East End property. Jim Kersey of Lincoln Properties and Rich Whaley of MAS Properties introduced themselves. Mr. Kersey indicated the competitors had seen and critiqued each others plans. Mr. Kersey introduced Lee Arnold who reviewed the credentials of the companies involved in Clearwater Public/ Private Associates. Mr. Kersey reviewed the credentials of Lincoln Property. He stated the goals of the East End project also apply to downtown and he felt they should be looked at as a whole. He suggested the creation of a design district for the entire downtown with 3 or 4 distinctive zones. He indicated it was important to link the East End to the waterfront. His recommendations included: 1) along Cleveland Street to have first floor retail with offices and residences on the second and third; 2) below Park Street focus on multi-family residential; 3) build on the existing office core; 4) the bluff area to Ft. Harrison be retail/entertainment/government. He stated the plan being presented has a lot of flexibility. The development of the bluff could include the proposed Art Center. City Hall could be placed at the corner of Drew and Osceola and the library could be located at the current City Hall site. Phil Dangerfield of HOK Architects and Warren Pollack of Stuart S. Golding Co. spoke regarding the plans for the East End and Bluff stating the East End residential component would be the catalyst to bring people downtown. The bluff development would offer a festive retail environment that would also pull people downtown. The two components would compliment each other. Mr. Kersey indicated they are seeking the ability to move forward with these concepts. In response to a question he indicated this is different than the Bay Plaza project in St. Petersburg as Clearwater will not be asked to front millions of dollars for the project. Mr. Whaley indicated he his reaffirming his commitment to downtown. His proposal is to develop the East End property with 240 apartment units. This will bring the people needed to make downtown successful. Pat McQuire of Opus, the general contractor for the project and Mike Fitzpatrick of Architect Alliance reviewed the credentials of their companies. They reviewed the proposal stating it would include seven buildings with 4 unit types. Phase II could be retail or more residential. The development will include an active water element. The perimeter will be heavily landscaped. Jim Carswell, President of MAS Apartments, stated the proposal is based on a sound financially based market concept. He felt it is important to set an image that is tied to downtown. He stated the demographics call for rental units with a mix of varying sizes. Their projections show a healthy cash flow. Tom McVeigh stated this is a low risk, market supported/driven, financially sound project. Mr. Carswell stated the City’s investment in the land showed foresight. He reviewed the proposal stating the City would receive $3,000,000 for the land. MAS in conjunction with Opus will develop the property, with MAS borrowing the money needed for construction. Once the project is completed the Community Redevelopment Agency (CRA) will buy the project and lease it back to MAS for thirty years. Mr. Whaley stated this will provide an aesthetically pleasing gateway to downtown. This is a win-win proposition. In response to a question the City Manager indicated the CRA can lease property for 30 years. A concern was expressed that the Cleveland frontage would remain vacant. Mr. Whaley indicated the apartments would generate a market for what is to be placed there. During this time the property could be used as a park. In response to a question Mr. Kersey indicated land would be needed to square off the frontage at least to Washington. He also indicated the first stores to go in along the Cleveland Street frontage would serve the neighborhood. The City Manager indicated the City would want the project to be market driven. He also stated the City would not want to be involved in providing a subsidy. Mr. Kersey indicated they would not come back with a subsidy deal. Mary Vaughn of the Downtown Development board (DDB), questioned if it is too soon to begin a recruitment program. Mr. Whaley indicated it was not too soon as there would be a need to house the companies transferring to the area. Gordon McDougall questioned the need to transfer the land to the CRA. It was indicated the City is barred from a thirty year lease. Brenda Nixon questioned what risk Mr. Whaley would be taking. Mr. Whaley indicated that during the construction phase MAS would have all the risk. Who would pay the cost of infrastructure was questioned. Mr. Carswell responded that they would assume those cost and then fold them into the CRA purchase of the project. Ms. Vaughn questioned how they would slow Cleveland Street traffic. Mr. Kersey indicated this would be done with cross-walks and other methods. Terry Flowers questioned how the proposal for redevelopment of downtown and the bluff would affect the negotiations for the Art Center in the old Maas Brothers building. Mr. Kersey indicated this was a concept that had been developed quickly using the downtown plan and does not specify an area for the Art Center. The Mayor pointed out a referendum regarding the Art Center is scheduled for November. Questions were raised regarding the City Hall Annex. It was indicated a decision would have to be made quickly regarding the departments housed in that facility. In response to a question regarding contamination of the land it was indicated if the CRA delivers the land in a clean state it has to be returned in a clean state. Discussion ensued regarding additional property in the area. It was indicated private ownership was preferred. The City Manager indicated the City is removing old dilapidated buildings on property it owns. It was questioned how long it would be before the City makes a decision. It was indicated a response re the East End proposal would be easier than on the proposal for development of the downtown and bluff. Lee Arnold indicated this is the first time this type of development team has been put together. He stated this is a “whole fix” and that it has momentum. The meeting adjourned at 4:06 p.m.