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08/31/2015 Community Redevelopment Agency Meeting Minutes August 31, 2015 City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 e d s w r' �mu Meeting Minutes Monday, August 31, 2015 1 :00 PM City Hall Chambers Community Redevelopment Agency Page 1 City of Clearwater Community Redevelopment Agency Meeting Minutes August 31, 2015 Roll Call Present 4 - Chair George N. Cretekos, Trustee Doreen Hock-DiPolito (Arrived — 1:06 p.m.), Trustee Jay E. Polglaze, and Trustee Hoyt Hamilton Absent 1 - Trustee Bill Jonson Also Present—William B. Horne — City Manager, Jill 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 Coo rd in ator To provide continuity for 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 1:00 p.m. at City Hall. 2. Approval of Minutes 2.1 Approve the minutes of the August 17, 2015 CRA meeting as submitted in written summation by the City Clerk. Trustee Polglaze moved to approve the minutes of the August 17, 2015 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 an Interlocal Agreement between the Clearwater Community Redevelopment Agency (CRA) and the City of Clearwater to provide CRA funding in Fiscal Year 2015-2016 in the amount of$166,596.78 to underwrite the cost of additional Community Policing services by the Clearwater Police Department in the East Gateway CRA District, pursuant to the East Gateway Five-Year Action Program for fiscal years 2012-2017 and authorize the appropriate officials to execute same. On October 15, 2012, the CRA approved the East Gateway District Five-Year Page 2 City of Clearwater Community Redevelopment Agency Meeting Minutes August 31, 2015 Action Program for FY 2012-2017. The Action Program responded to public input on the issues of drug dealing, prostitution and street crime by including an action item for the continuation of increased police presence and crime reduction within the East Gateway District. An allowable funding source of this action item is the use of CRA Tax Increment Financing (TIF) funds. Florida Statues allows for the use of TIF funds for community policing innovations in Community Redevelopment Areas. The CRA and Clearwater Police Department have reached an agreement on a proposed scope of services and terms as delineated in the Interlocal Agreement. Included in the scope is the delineation of specific, measurable crime reduction targets by which to monitor the success of the initiative as well as providing clear language required by statute assuring that the resources are applied to the CRA/East Gateway area. Funding will be from the CRA East Gateway Project account (388-94849). APPROPRIATION CODE AND AMOUNT: 388-94849 $166,596.78 Funding will be from the CRA East Gateway Project 388-94849. $166,596.78 Trustee Polglaze moved to approve an Interlocal Agreement between the Clearwater Community Redevelopment Agency (CRA) and the City of Clearwater to provide CRA funding in Fiscal Year 2015-2016 in the amount of$166,596.78 to underwrite the cost of additional Community Policing services by the Clearwater Police Department in the East Gateway CRA District, pursuant to the East Gateway Five-Year Action Program for fiscal years 2012-2017 and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4.2 Amend the operating budget for the Community Redevelopment Agency for fiscal year 2014-15; approve budget amendments to the CRA Capital Improvement Project Fund; and adopt resolution 15-02. Amendments to the revenues of the Operating Budget reflect a decrease of $55,563 in Tax Increment Financing (TIF) received for fiscal year 14-15 based upon final receipts for the TIF proceeds from Pinellas County, the City of Clearwater, and the Downtown Development Board. Operating expenditure amendments at mid-year include an increase of $75,000 from Payment to Other Agencies-Blast Friday to reflect the payment Page 3 City of Clearwater Community Redevelopment Agency Meeting Minutes August 31, 2015 to fund the grant to Clearwater Downtown Events, Inc for Blast Friday. Proposed amendments to operating budget include: 1. To adjust budgeted revenue to actual TIF receipts, and adjust the related payment to the DDB to match actual receipts. 2. To adjust budgeted interest revenue to actual receipts to date. 3. To adjust miscellaneous other review to actual receipts to date. 4. To allocate prior year reserves to fund the transfer to the City as compensation for the Prospect Lake land transfer reimbursement to HUD as approved by the CRA on August 4, 2014. 5. To increase payment to agencies by $75,000 to fund the grant to Clearwater Downtown Events, Inc for Blast Friday as approved by the CRA on November 3, 2014. 6. To reduce the budget transfer of Restricted County TIF funds to the East Gateway project by $20,089 to compensate for the loss in tax increment financing. 7. To reduce the budget transfer to the Downtown Redevelopment project by $75,000 to fund the grant to Clearwater Downtown Events, Inc for Blast Friday as approved by the CRA on November 3, 2014; and by $3,647 to compensate for the loss in tax increment financing net of the miscellaneous revenue amendments noted above. Proposed amendments to CRA Capital Improvement Project Fund include: 1. To reduce the budget to the Downtown Redevelopment project by $75,000 to provide funding for the grant to Clearwater Downtown Events, Inc for Blast Friday as approved by the CRA on November 3, 2014, and by $3,647 due to the reduction in tax increment receipts in the operating budget for the fiscal year, and to adjust for the amendments noted below. (items 2, 3 and 6) 2. To transfer $65,000 from 388-94714, Downtown Redevelopment, to project 388-94884, Property Acquisition 1356 Park Street to provide funding necessary for property acquisition as approved by the CRA on July 13, 2015. 3. To increase the budget by a net total of$536,317.15 representing prior year excess cash which totals $535,343.24 and other revenue, which totals $973.91. This will bring the budget in the line with actual cash received in the project. 4. To reduce the budgeted transfer by $20,089 due to the reduction in County Tax increment receipts in the operating fund for the fiscal year, and adjust for the amendment below. (items) Page 4 City of Clearwater Community Redevelopment Agency Meeting Minutes August 31, 2015 5. To increase the budget by a net total of$3,146.04 representing an increase to other revenue which totals $4731.98, and increase to reimbursements for $1,000 and a decrease to CRA transfer in revenue of$2585.94. This will bring the budget in line with actual received in the project. 6. To establish project 388-94885, ULI Implementation and transfer $1,000,000 from 388-94714, Downtown Redevelopment to provide funding for ULI priorities as discussed by the board on September 15, 2014. The City Manager said he received a call from Trustee Jonson, he recommended that the item be deferred to the next CRA meeting as he would not support the $1 million transfer without more specific information. There was no consensus to defer the agenda item. In response to questions, CRA Executive Director Rod Irwin said the funding is needed now. Staff would feel more comfortable having the funds available to ensure implementation is not delayed. Economic Development and Housing Director Geri Campos Lopez said the budget presented to the Trustees includes preliminary TIF estimates provided by Pinellas County. The budget amendments presented throughout the year are actuals. The County overestimates the TIF roll. Trustee Hamilton moved to amend the operating budget for the Community Redevelopment Agency for fiscal year 2014-15; approve budget amendments to the CRA Capital Improvement Project Fund. The motion was duly seconded and carried unanimously. Resolution 15-02 was presented and read by title only. Trustee Hock-DiPolito moved to adopt Resolution 15-02. The motion was duly seconded and upon roll call, the vote was: Ayes: 4 - Chair Cretekos, Trustee Hock-DiPolito, Trustee Polglaze and Trustee Hamilton 4.3 Approve the Fiscal Year 2015-2016 Community Redevelopment Agency (CRA) Preliminary Budget and adopt CRA 15-03. The major highlights of the Fiscal Year 2015-2016 proposed preliminary budget are as follows: Tax increment revenues increased by $166,771 over the proposed 2014-2015 Page 5 City of Clearwater Community Redevelopment Agency Meeting Minutes August 31, 2015 budget, reflecting an increase in taxable value of 8.1% in the old Downtown CRA (Downtown) and a 6.3% increase in the expanded CRA area (East Gateway). These compare with Citywide 6.9% increase in value. The new CRA value increase is positive, as it indicates value increases in the East Gateway are more closely approximating the citywide number, as compared to previous years. The Downtown/Old CRA value increases continue to exceed citywide increases, indicating positive market response to redevelopment and public investment activities. Operating expenditures increased by $ 13,509 or 5.1% largely due to the increase in pass through revenues to the Downtown Development Board (DDB), as well as minor increases in operating expenses across several line items. New to the budget this year is funding of an Economic Development (ED) Coordinator position needed to support Urban Land Institute (ULI), East Gateway and Downtown program activities. This is an expansion of capacity on the CRA side similar to the addition of an ED Coordinator on the ED side to implement the ED Strategic Plan several years ago. In this case, the added work generated by the ULI Advisory Panel project implementation activities indicates the need for a similar staff addition. Also in support of the ULI Program and Clearwater Business Spark, an entrepreneurial ecosystem initiative, funds in the amount of$99,600 are being allocated to a new project account to underwrite the STEM (Science Technology Engineering and Mathematics) and Youth STEM centers at the Main Library. The budget appropriation of$50,000 to the existing Economic Development Incentives project account will allow a continuation of the well-established parking subsidy initiative for office lease deals. As staff continues to support lease-up of the office space in the Tech District, this initiative has been very helpful. The Blast Friday agreement with Clearwater Downtown Events/Ruth Eckerd Hall has expired and a new proposal, including an increase in CRA financial participation, has recently been submitted to staff. However, the proposal has not been sufficiently vetted to warrant inclusion of an appropriation request in the proposed budget. As was the case in Fiscal Year 2014-15, if agreement is reached on a program to meet the expanded scope and re-direction requested by the CRA Board, a funding agreement can be brought forward at a subsequent meeting. Should a proposal be subsequently approved by the Board, funding could be appropriated from the Downtown Redevelopment Fund. Page 6 City of Clearwater Community Redevelopment Agency Meeting Minutes August 31, 2015 Please note that the annual $6,000 contribution for the Farmer's Market has been deleted from the budget. The DDB has not funded the event in their budget, and CRA staff has determined that the business model likely will no longer be sustainable. Alternately, the DDB has approved funding for a Saturday Market which seems promising. The CRA will support the effort through payment of meter fees to the Parking Fund. Transfers Out to various projects are as designated in the CRA Six Year Plan. The Proposed Fiscal Year 2015-2016 Agency budget is consistent with the Six Year Plan. In response to questions, CRA Executive Director Rod Irwin said the proposed additional position will assist with the ULI quarterly reports and TIF renewal, as well as working actively in the East Gateway. Economic Development and Housing Director Geri Campos Lopez said the position will work on CRA projects, such as the streetscaping and the Mercado. Mr. Irwin said the CRA is able to subsidize parking for businesses that lease space in the CRA as an incentive to recruit businesses. In regards to expanding the City's use at Station Square Parking Garage, outside counsel Peter Dunbar said the City could not expand its use unless the condo documents were amended. The condo documents only allow retail meter parking. Staff supports the amendment but the homeowners association must approve the change. Mr. Irwin said there are many vacancies in the parking garage. Finance Director Jay Ravins said staff has confirmed with bond counsel that the bonds used for construction have been paid. In response to a question, Mr. Irwin said the Farmers Market held on Wednesdays has declined over the years. The Saturday Market has a stronger business plan that will link with the Arts Stroll during the Summer. Ms. Campos Lopez said the Saturday Market will feature local products, ingredients, and vendors. The market has a broader appeal than the Wednesday Farmers Market. Staff was directed to provide a list of companies that have been recently recruited into the City. Trustee Hamilton moved to approve the Fiscal Year 2015-2016 Community Redevelopment Agency (CRA) Preliminary Budget. The motion was duly seconded and carried unanimously. Resolution 15-03 was presented and read by title only. Page 7 City of Clearwater Community Redevelopment Agency 5. Adjourn Attest Meeting Minutes August 31, 2015 Trustee Hock - DiPolito moved to adopt Resolution 15 -03. The motion was duly seconded and upon roll call, the vote was: Ayes: 4 - Chair Cretekos, Trustee Hock - DiPolito, Trustee Polglaze and Trustee Hamilton The meeting adjourned at 1:47 p.m. City of Clearwater Chair Community Redevelopment Agency Page 8