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05/15/2007 COMMUNITY REDEVELOPMENT AGENCY AGENDA Location: Council Chambers - City Hall Date: 5/15/2007- 8:00 AM 1. Call to Order 2. Approval of Minutes 2.1 Approve the minutes of the April 16, 2007 CRA Meeting as submitted in written summation by the City Clerk. I@l Attachments 3. CRA Items 3.1 Approve the Assignment of the Interest held by Clearwater Centre, LLC in the Development Agreement for the project known as "Clearwater Centre", located at 1100 Cleveland Street, to Clearwater Espacio Development, LLe. I@l Attachments 3.2 Approve a Development Agreement between the CRA and Clearwater Hospitality Properties, LLC of Jacksonville Florida concerning the "Residence Inn by Marriott" project, 940 Court Street, delineating the terms and conditions for the provision of certain economic assistance by the CRA. I@l Attachments 3.3 Adopt mid year budget amendments for the CRA for the period of October 1, 2006 though March 31, 2007. ~ Attachments 4. Other Business 5. Adjourn Meeting Date:5/15/2007 Community Redevelopment Agency Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the minutes of the April 16, 2007 CRA Meeting as submitted in written summation by the City Clerk. SUMMARY: Review Approval: 1) Clerk Cover Memo Item # 1 Attachment number 1 Page 1 of 4 COMMUNITY REDEVELOPMENT AGENCY MEETING MINUTES CITY OF CLEARWATER April 16, 2007 unapproved Present: Frank Hibbard Carlen Petersen John Doran George N. Cretekos Paul Gibson Also present: William B. Horne II Garry Brumback Rod Irwin Pamela K. Akin Cynthia E. Goudeau Patricia O. Sullivan Chair/CRA Trustee CRA Trustee CRA Trustee CRA Trustee CRA Trustee City Manager Assistant City Manag Assistant City Manage City Attorney City Clerk Board Reporter The Chair called the meeting to order at 2:05 p.m. To provide continuity for research, item necessarily discussed in that order. 2 - Approval of Minutes 6, 2007 CRA d in written summation d carried unanimously. minutes of the March 15, 2007 Special CRA ummation by the City Clerk to each Trustee. nimously. ment Efforts. (Community Redevelopment Agency) and CRA-related dev resolution of Board priority and scheduling as a formal part of the CRA eRA Executive Director and City Manager are seeking to begin discuss oard on priority and scheduling so that appropriate staff and resources can be a support the Board priorities in this area in a timely manner. Among the projects sp cally requiring direction to staff are: 1) Harborview redevelopment; 2) City Marina redevelopment; 3) Coachman Park development; and 4) OPUS/City Hall development. The City Attorney stated that the City Marina is not in the CRA. Community Redevelopment Agency 2007-04-16 1 Item # 1 Attachment number 1 Page 2 of 4 CRA Executive Director Rod Irwin reviewed the CRA priorities and contractual constraints regarding Harborview. The Stein Mart lease expires December 2009 and the Pickles Plus lease has 12 more years at its discretion. Mr. Irwin reported that discussions with the restaurant regarding early termination of its contract have not been fruitful. In response to questions, the City Attorney said the City would have to negotiate terms of disengagement with Pickles Plus. Discussion ensued. It was suggested a professional committe consider options regarding redevelopment of the Harborview Cente input. Staff will come back in the Fall with recommended paramet committee. Consensus was to consider the Harborview Center and Coac keep City Hall on a separate track. The Marina is the last priority. It was recommended that condominiums not be considered fo ar development not result in an increase in City FTEs (Full-Ti uivalent). 3.2A The purpose of this RFP (Re Team to successfully purchase an and Prospect Avenue in Dow one block east of the Downt fill project with ponent. The CRA's reation of a si ential concentration in and pport for a retal ecreational environment. The to further this strategy. Such a development is erty in the Downtown Redevelopment Plan. the following: 1) Mixed-use building fronting s in height; Commercial uses located on first floor of mixed- on the upper floors; 3) Mixed-use building should have a icular access to Cleveland Street; 4) Freestanding residential of the mixed-used building; 5) Location and orientation of talize on site's proximity to Prospect Lake Park; and 6) Maximum one residential buildings. eflecting significant variations from the preferred concept may be the sole and exclusive option of the CRA. The Downtown Plan allows up to 30 dwelling s or 40 hotel units per acre; a FAR (Floor Area Ratio) of 1 for commercial; and up to 75 feet in height. Additional density may be available pursuant to the City's Downtown Public Amenities Incentive Pool, in conjunction with the provision of significant public amenities. Proposals submitted will provide Developers the opportunity to demonstrate their ability to Community Redevelopment Agency 2007-04-16 2 Item # 1 Attachment number 1 Page 3 of 4 undertake the planning, design, financing, construction, and implementation of the project envisioned. A screening team will be formed to evaluate all submissions according to the following evaluation criteria: 1) Developer experience and qualifications - 25%; 2) Financial feasibility of the developer and project - 25%; 3) Conceptual development program and vision - 25%; 4) Economic Benefit to the CRA - 25%. In addition, a 10% bonus may be applied to project that reserves 10% of the residential units for workforce housing for a period of 0 ye The Screening Team will recommend a Preferred Developer to the CRA, I m fin selection. The anticipated selection schedule is: 1) Release RFP - M Submittal Deadline - June 12,2007; 3) Project Evaluation and Ran 2007; 4) Oral Presentations - week of July 9, 2007; and 5) Approval August 2007. The RFP will be available on the City's website. Staff list of interested developers. Staff also will advertise the release of Institute website, several economic development and homebuilder as as trade publications to ensure a wide variety of response CRA Executive Director Rod Irwin provided Downtown Plan's density and residential setbac Concern was expressed that the qualified bids. Consensus was to e 'nant plan pr sed that the lake price for the property rney said the CRA ase of Request for Proposals/Qualifications includes a commercial component, on the roviding eight weeks for responses. The sly. any discussion regarding the Harborview Center's future draws Community Redevelopment Agency 2007-04-16 3 Item # 1 Attachment number 1 Page 4 of 4 5 - Adjourn The meeting adjourned at 2:57 p.m. Chair Community Redevelopment Attest: City Clerk Community Redevelopment Agency 2007-04-16 4 Item # 1 Meeting Date:5/15/2007 Community Redevelopment Agency Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve the Assignment of the Interest held by Clearwater Centre, LLC in the Development Agreement for the project known as "Clearwater Centre", located at 1100 Cleveland Street, to Clearwater Espacio Development, LLC. SUMMARY: The ownership of the "Clearwater Centre" project, located at 1100 Cleveland Street, has notified the CRA of a change of ownership entity from Clearwater Centre, LLC to Clearwater Espacio Development, LLC and has requested CRA approval of the assignment of the interest held by Clearwater Centre, LLC in the development agreement approved by the CRA on January 16, 2007 for the above- referenced project to the new ownership entity. The new entity would assume and continue all of the obligations of Clearwater Centre, LLC under the development agreement. Espacio is the real estate development arm of Grupo OHL, a 103 year-old construction company headquartered in Madrid, Spain with revenues of approximately $2.5 Billion annually. They have completed projects worldwide and are currently making an entrance into the US real estate market, with a focus on Florida, Arizona, Texas and New York.Espacio will hold a 50% interest in Clearwater Espacio Development, LLC, with the remainder retained by the current principals of Clearwater Centre LLC. Espacio will provide construction financing, estimated at approximately $40,000,000 to allow the project to move forward with construction within the time parameters of the development agreement. Pending completion of due diligence by CRA staff, the new ownership entity, which includes a 50% ownership share by Espacio, would appear to strengthen the financial and performance capacity of the project. Approval of the Assignment is therefore recommended. Representatives of the ownership entity will be present to answer any questions on the ownership change. Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) City Manager 5) Office of Management and Budget 6) Legal 7) Clerk 8) Assistant City Manager 9) Clerk 10) City Manager 11) Clerk Cover Memo Item # 2 Attachment number 1 Page 1 of 5 ASSIGNMENT OF DEVELOPMENT AGREEMENT [CLEARWATER CENTRE DEVELOPMENTl WHEREAS, on January 24, 2007, the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA, a public body corporate and politic of the State of Florida, [the "Agency"], entered into a Development Agreement [the "Agreement"] to develop certain parcels of real estate located at the northeast corner of the intersection of Cleveland Street and MLK, Jr. Avenue, Clearwater, Florida, known as "Clearwater Centre" in the community redevelopment area of the City; and WHEREAS, the initial Developer, CLEARWATER CENTRE, LLC, a Florida limited liability company, wishes to create a new development entity, wherein it will be a fifty (50%) percent owner, with a new development partner, and incident thereto wishes to assign the Development Agreement to this new entity to be created; and WHEREAS, consistent with the authority set forth in Article 11.01, Assiqnments, Developer, subject to Agency approval, has the right to assign all of its right, title, interest and obligations in and to the Project; and WHEREAS, the new entity, assignee is CLEARWATER ESPACIO DEVELOPMENT, LLC, a Florida limited liability company, [the "Assignee Developer"], wherein the Developer will own a fifty (50%) percent membership interest, and ESPACIO USA, INC., a Delaware corporation, qualified to transact business in the State of Florida, or an affiliate thereof, will likewise own a fifty (50%) percent membership interest; it is NOW, THEREFORE, for Ten ($10.00) Dollars and other good and valuable considerations, the receipt of which is hereby acknowledged, as follows: 1 . Recitals. The recitals set forth above are true and correct and are incorporated herein by reference. 2. Assiqnment. Developer hereby assigns all of its right, title, interest and obligations in and to the Project to the newly formed CLEARWATER ESPACIO DEVELOPMENT, LLC, a Florida limited liability company, and the said Assignee Developer by joinder herein does assume all obligations under the said agreement and acknowledges that it shall be bound to perform all of the terms and provisions thereof. 3. Release. It is understood that CLEARWATER CENTRE, LLC, a Florida limited liability company, the original Developer, is released from the terms and provisions of the Development Agreement, as Developer, as the new entity, CLEARWATER ESPACIO DEVELOPMENT, LLC, a Florida limited Item # 2 Attachment number 1 Page 2 of 5 liability company, the Assignee Developer, shall henceforth be the Developer under the said Development Agreement. It is further understood that SEBASTIAN DORNER and ELIZABETH DORNER, are not released by this Assignment from their obligations to provide security for the development as provided by the original Development Agreement, and their obligations remain unchanged. 4. Consent. By joinder herein the Agency accepts and approves the assignment to the Assignee Developer herein; provided, nevertheless, that this said Assignment shall be effective only when recorded by the Agency in the Public Records in and for Pinellas County, Florida. The Agency shall only record this said Assignment upon written direction from the Assignee Developer, in writing, executed by the two identified Managing Mem bers. If such approval is not received within sixty (60) days from the date of approval hereof, then this Assignment shall be of no further force and effect. To the extent such written direction is received, and this Assignment is recorded in the Public Records as aforesaid, the same shall constitute a release of the Developer identified in the said Agreement and said Developer shall have no further rights or obligations as Developer except as an equal Managing Member in the new Assignee Development. 5. Notices. Paragraph 11.03, Notices, of the Agreement is amended to provide that notices to the Assignee Developer shall now be sent to: To the Developer: Clearwater Espacio Development, LLC c/o Clearwater Centre, LLC 1100 Cleveland Street Suite 101 Clearwater, FL 33755 FAX #: (727) 588-9404 With copies to: Harry S. Cline, Esq. Macfarlane Ferguson & McMullen Post Office Box 1669 Clearwater, FL 33757-1669 FAX #: (727) 442-8470 To Javier Escamilla c/o The Tower Group, Inc. 405 SW 148th Avenue, Suite 1 Davie, FL 33325 FAX#: (954)474-3111 2 Item # 2 Attachment number 1 Page 3 of 5 With copies to: Luis Perez, Esq. Hogan & Hartson, LLP Mellon Financial Center 1111 Brickell Avenue Suite 1900 Miami, FL 33131 FAX #: (305) 459-6550 6. Except as herein expressly amended, the said Agreement is ratified and approved in all respects. IN WITNESS WHEREOF, the parties hereto have set their hands and their respective seals affixed effective as of this day of 2007. COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA By: Frank V. Hibbard Chairperson Approved as to form: Attest: Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk CLEARWATER ESPACIO DEVELOPMENT, LLC, a Florida limited liability company Witnesses for CLEARWATER CENTRE, LLC: By: CLEARWATER CENTRE, LLC, a Florida limited liability company, Its Managing Member By: Sebastian Dorner, Executive Mem ber By: Elizabeth Dorner By: Guy M. Bonneville, Managing Member 3 Item # 2 Attachment number 1 Page 4 of 5 Witnesses for ESPACIO USA, INC.: ESPACIO USA, INC., a Delaware corporation, Its Managing Member By: Print Name: Title: Witnesses for CLEARWATER CENTRE, LLC: CLEARWATER CENTRE, LLC, a Florida limited liability company, as Assignor By: Sebastian Dorner, Executive Mem ber By: Elizabeth Dorner By: Guy M. Bonneville, Managing Member STATE OF FLORIDA COUNTY OF PINELLAS I HEREBY CERTIFY, that on this day personally appeared before me, an officer duly authorized to administer oaths and take acknowledgments, by SEBASTIAN DORNER and GUY M. BONNEVILLE, as Executive Member and Managing Member, respectively of CLEARWATER ESPACIO DEVELOPMENT, LLC, a Florida limited liability company, and ELIZABETH DORNER, to me known to be the individuals described in, or who produced as identification, and who executed the foregoing instrument as said members, and they acknowledged before me that they executed the same for the purposes therein expressed on behalf of the company. WITNESS my hand and official seal at Clearwater, said County and State, this day of , 2007. Notary Public Print Name My Commission Expires: 4 Item # 2 Attachment number 1 Page 5 of 5 STATE OF FLORIDA COUNTY OF I HEREBY CERTIFY, that on this day personally appeared before me, an officer duly authorized to administer oaths and take acknowledgments, by as of ESPACIO USA, INC., a Delaware corporation, to me known to be the individual described in, or who produced as identification, and who executed the foregoing instrument as said officer, and he acknowledged before me that he executed the same for the purposes therein expressed on behalf of the company. WITNESS my hand and official seal at County and State, this day of , said ,2007. Notary Public Print Name My Commission Expires: STATE OF FLORIDA COUNTY OF PINELLAS I HEREBY CERTIFY, that on this day personally appeared before me, an officer duly authorized to administer oaths and take acknowledgments, by SEBASTIAN DORNER and GUY M. BONNEVILLE, as Executive Member and Managing Member, respectively of CLEARWATER CENTRE, LLC, a Florida limited liability company, and ELIZABETH DORNER, to me known to be the individuals described in, or who produced as identifica- tion, and who executed the foregoing instrument as said members, and they acknowledged before me that they executed the same for the purposes therein expressed on behalf of the company. WITNESS my hand and official seal at Clearwater, said County and State, this day of , 2007. Notary Public Print Name My Commission Expires: h: \data \aty\hsc \clearwatercentre \developmentagmt -asgu5 07'07 .doc 5 Item # 2 Meeting Date:5/15/2007 Community Redevelopment Agency Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Approve a Development Agreement between the CRA and Clearwater Hospitality Properties, LLC of Jacksonville Florida concerning the "Residence Inn by Marriott" project, 940 Court Street, delineating the terms and conditions for the provision of certain economic assistance by the CRA. SUMMARY: Clearwater Hospitality Properties, LLC is developing the "Residence Inn by Marriott" project located at 940 Court Street. The Project is a 115 room extended stay hotel with accessory swimming pool and surface parking. Flexible Development Approval was issued by the Community Development Board (CDB) on May 16,2006 which permits development of the Project. 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 CRA area, 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. The main business terms of the Agreement are: (1) the reimbursement of impact and permit fees, not to exceed $178,000, payable upon receipt of a Certificate of Occupancy for the property; and (2) the reimbursement of the City only portion of the TIF, but not more than fifty percent (50%) of the total TIF revenue generated by the project, for a period of six years, to offset extraordinary costs, including an enhanced FF&E package required by the Marriott Corporation, and to allow the project to meet the minimum hurdle rates of return necessary to support construction of the project. However, the total reimbursement to the Developer under item (2) shall not exceed a total of $400,000. At an assessed value of $12,000,000 the project is estimated to generate $140,000 in tax increment revenue in the first full assessment year the project is operational (estimated to be 2010). A total of $1,684,087 in TIF revenue is estimated to be generated through the expiration of the TIF authorization in 2019. Appropration Code 388-94714 Amount $578,000 Appropriation Comment Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) Clerk 6) City Manager 7) Clerk Cover Memo Item # 3 Attachment number 1 Page 1 of 30 DEVELOPMENT AGREEMENT (Court Street Residence Inn) This Development Agreement (this "Agreement") is made as of this day of , 2007, by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA, a public body corporate and politic of the State of Florida created pursuant to Part III, Chapter 163, Florida Statutes ("Agency"), and CLEARWATER HOSPITALITY PROPERTIES, L.L.C., a Delaware limited liability company ("Developer"). WITNESSETH: WHEREAS, Developer proposes to develop certain parcels located at 940 Court Street, Clearwater, Florida, and legally described as set forth in Exhibit A, as a limited services hotel to be operated initially under a franchise agreement with Marriott International, Inc. as a "Residence Inn by Marriott" (the "Project") as more specifically described and defined herein, in the community redevelopment area of the City; WHEREAS, Developer has requested certain assurances and incentives to insure the success of the Project, which negotiations have resulted in this Agreement; WHEREAS, at a duly called public meeting on _,2007, the Agency approved this Agreement and authorized and directed its execution by the appropriate officials of the Agency; WHEREAS, the members (as that term is defined in the operating agreement of the Developer) of Developer have approved this Agreement and has authorized and directed certain individuals to execute this Agreement on behalf of Developer; and NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties hereby agree as follows: ARTICLE 1. DEFINITIONS. 1.01. Definitions. The terms defined in this Article I shall have the following meanings, except as herein otherwise expressly provided: (1) "Act" means the Constitution of the State of Florida; Section 163.01, Florida Statutes, Part III, Chapter 163, Florida Statutes; Chapter 166, Florida Statutes, other applicable provisions of law, and ordinances and resolutions of the City and the Agency implementing them. Item # 3 Attachment number 1 Page 2 of 30 (2) "Agency" means the Community Redevelopment Agency of the City, as created by Resolution No. 81-68 of the City, adopted by the City Council on August 6, 1981, including any amendments thereto, and any successors or assigns thereto. (3) "Agreement" means this Development Agreement, including any Exhibits, and any amendments hereto or thereto. (4) "Agreement Expiration Certificate" means the instrument executed by the parties hereto as provided in Section 11.19 certifying that all obligations of the parties hereto have been satisfied and this Agreement has expired in accordance with its terms, the form of which is attached hereto as Exhibit E. (5) "Agreement Termination Certificate" means the instrument executed by the parties hereto as provided in Section 9.06 stating that this Agreement has been terminated prior to its Expiration Date as provided in Section 9.05, the form of which is attached hereto as Exhibit F. (6) "Area" means the area located within the corporate limits of the City having conditions of slum and blight (as those conditions are defined in the Act) as found by the City Council in Resolution No. 81-67, adopted by the City Council on August 6, 1981, and as amended by Resolution No. 03-22, adopted by the City Council on May 1,2003. (7) "Authorized Representative" means the person or persons designated and appointed from time to time as such by the Developer or the Agency, respectively, pursuant to Section 2.04. (8) "Building Permit" means, for all or any part of the Project to be constructed on the Site, any permit issued by the City authorizing, allowing and permitting the commencement, prosecution and completion of construction to the extent provided in said permit. (9) "City" means the City of Clearwater, Florida, a Florida municipal corporation, and any successors or assigns thereto. (10) "City Council" means the governing body of the City, by whatever name known or however constituted from time to time. (11) "Commencement Date" means the date of issuance of the foundation permit for the Project and commencement of construction pursuant thereto. (12) "Completion Date" means the date on which construction of the Project IS substantially complete as evidenced by a Completion Certificate. (13) "Contractor" means one or more individuals or firms constituting a general contractor or other type of construction contractor properly licensed by the State of Florida or 2 Item # 3 Attachment number 1 Page 3 of 30 other appropriate jurisdiction to the extent required by applicable law, authorized to perform construction contractor services in the State of Florida, registered with the City as required by applicable law, bonded and insured to the extent required by applicable law and this Agreement, including the Developer or any affiliates of the Developer. (14) "Developer" means Clearwater Hospitality Properties, L.L.C., a Delaware limited liability company, and any successors and assigns thereof, including any entity, partnership, joint venture, or other person in which Clearwater Hospitality Properties, L.L.C., is a general partner or principal, but not including any entity, partnership, joint venture, or other person in which Clearwater Hospitality Properties, L.L.C. is a general partner or principal which is not undertaking or participating in any development of the Project, or any part thereof. (15) "Effective Date" means the date determined in accordance with Section 11.20 when the Memorandum of Development Agreement is recorded and this Agreement becomes effective. (16) "Exhibits" means those agreements, diagrams, drawings, specifications, instruments, forms of instruments, and other documents attached hereto and designated as exhibits to, and incorporated in and made a part of, this Agreement. (17) "Expiration Date" means the date on which this Agreement expires, as evidenced by the Agreement Expiration Certificate being recorded in the public records of Pinellas County, Florida, as provided in Section 11.19 hereof. (18) "Impact Fees" means those fees and charges levied and imposed by the City, Pinellas County and any other governmental entity on projects located on the Site for certain facilities and services impacted by development such as the Project. (19) "Permits" means all zoning, variances, approvals and consents required to be granted, awarded, issued, or given by any governmental authority in order for construction of the Proj ect, or any part thereof, to commence, continue, be completed or allow occupancy and use, but does not include the Building Permit. (20) "Plan" means the community redevelopment plan for the Area, including the Site, as adopted by the City Council on August 17, 1995 by enactment of its Resolution No. 95-65, and including any amendments to the Plan. (21) "Project" means the development project as identified in the first recital of this Agreement, being a limited services hotel containing one hundred and fifteen (115) guest rooms in a building of approximately 88,090 square feet, plus related amenities such as breakfast room and swimming pool. The designation of or reference to the Project as a "Residence Inn by Marriott" is subject to the disclaimers and limitations set forth in Section 4.02. 3 Item # 3 Attachment number 1 Page 4 of 30 (22) "Proj ect Plans and Specifications" means the plans and specifications pertaining to the construction, installation and equipping of the Project, including the schedule for completing the Project, consisting of the plans and specifications. (23) "Project Professionals" means any architects, attorneys, brokers, engineers, consultants, planners, construction managers or any other persons, or combination thereof, retained or employed by the Developer in connection with the planning, design, construction, permit applications, completion and opening of the Project, but does not include the Developer. (24) "Site" means that certain property with a street address of 940 Court Street, located in Clearwater, Florida, as more particularly described on Exhibit A attached hereto, on which the Project is to be located. (25) "Site Plan" means the depiction and description of the Project on the Site, the initial version of which is attached hereto as Exhibit B. (26) "Termination Date" means the date on which this Agreement is terminated by any party hereto as provided in Section 9.05, and as evidenced by the Agreement Termination Certificate. (27) "Unavoidable Delay" means those events constituting excuse from timely performance by a party hereto from any of its obligations hereunder, as such events are defined in and subj ect to the conditions described in Article 10 hereof. 1.02. Use of Words and Phrases. Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. Unless the context shall otherwise indicate, the singular shall include the plural as well as the singular number, and the word "person" shall include corporations and associations, including public bodies, as well as natural persons. "Herein", "hereby", "hereunder", "hereof', "hereinafter" and other equivalent words refer to this Agreement and not solely to the particular portion thereof in which any such word is used. 1.03. Florida Statutes. All references herein to Florida Statutes are to Florida Statutes (2006), as amended from time to time. ARTICLE 2. PURPOSE; PROPOSAL 2.01. Intent; Purpose of Agreement. (a) The purpose of this Agreement is to (i) secure economic assistance through the Agency which supports the implementation of the City of Clearwater's "District Vision" for the revitalization of the Downtown Core; and (ii) to further the implementation of the Plan by the development and construction and operation of the Project thereon in accordance with the Proj ect Plans and Specifications, all to enhance the quality of life, increase employment and 4 Item # 3 Attachment number 1 Page 5 of 30 improve the aesthetic and useful enjoyment of the Area through the eradication of conditions of blight, all in accordance with and in furtherance of the Plan and as authorized by and in accordance with the Act. (b) (1) Specifications. The Site IS to be redeveloped according to Project Plans and (2) As provided in this Agreement, the Agency shall undertake certain public actions pursuant to the Act and as implementation of the Plan, and provide assistance in obtaining such approvals by governmental authorities as are necessary for development of the Proj ect. ( c) As provided in this Agreement, the Developer shall carry out the redevelopment of the Site by obtaining approvals by governmental authorities necessary for development of the Proj ect, and constructing various private improvements on the Site. 2.02. Developer's Proposal. The redevelopment of the Site, specifically including the design, construction, equipping, completion and use of the Project, and each component thereof, is hereby found by the Agency and acknowledged by the Developer: (1) to be consistent with and in furtherance of the objectives of the Plan, (2) to conform to the provisions of the Act, (3) to be in the best interests of the citizens of the City, (4) to further the purposes and objectives of the Agency, and (5) to further the public purpose of eradicating conditions of blight in the Area. The parties recognize and agree that during the process of review and approval provided for in this Agreement the design of the Project may be subject to change and modification as may be either agreed to by the parties or required as provided herein or by the appropriate regulatory authority, and should any changes be necessary or desirable the parties agree that they will act expeditiously and reasonably in reviewing and approving or disapproving any changes or modifications to the Project. 2.03. Cooperation of the Parties. The parties hereto recognize that the successful development of the Project and each component thereof is dependent upon continued cooperation of the parties hereto, and each agrees that it shall act in a reasonable manner hereunder, provide the other party with complete and updated information from time to time, with respect to the conditions such party is responsible for satisfying hereunder and make its good faith reasonable efforts to ensure that such cooperation is continuous, the purposes of this Agreement are carried out to the full extent contemplated hereby and the Project is designed, constructed, equipped, completed and operated as provided herein. 2.04. Authorized Representative. (a) Each party shall designate an Authorized Representative to act on its behalf to the extent of the grant of any authority to such representative. Written notice of the designation of such a representative (and any subsequent change in the Authorized Representative) shall be 5 Item # 3 Attachment number 1 Page 6 of 30 given by the designating party to the other party in writing in accordance with the procedure set forth in Section 11.03 hereof. (b) Except as otherwise expressly provided in this Agreement, whenever approval or action by the Developer or the Agency is required by this Agreement, such action or approval may, in the discretion of the party considering such approval or action, be taken or given by the Authorized Representative thereof. A party to this Agreement may rely upon the representation of the other party's Authorized Representative that such person has the requisite authority to give the approval or take the action being done by that Authorized Representative. A party may not later deny that its Authorized Representative had the authority represented to and relied upon by the other party or revoke or deny any action taken by such Authorized Representative which was relied upon by the other party. (c) The Developer does hereby notify the Agency that its initial Authorized Representative for the Project is William H. Long, Jr. of The Clarkson Company. (d) The Agency does hereby notify the Developer that its initial Authorized Representative is Rod Irwin, Executive Director of the CRA. ARTICLE 3. LAND USE REGULATION. 3.01. Zoning. On the Effective Date, the zoning classification for the Site is "Downtown District", abbreviated as "D". The parties recognize and acknowledge that the zoning classification of the Site as of the Effective Date, as well as the Flexible Development Approval issued by the Community Development Board (CDB) on May 16, 2006, permits development of the Project. 3.02. Redevelopment Plan. The Agency represents to the Developer and the Developer acknowledges that as of the Effective Date, the provisions of the Plan pertaining to the Site were consistent with the Project as contemplated by the Proposal and this Agreement. 3.03. Development of Regional Impact. The parties hereto acknowledge and agree that the Proj ect as contemplated by the Proposal and this Agreement was not and is not as of the Effective Date a "development of regional impact" within the meaning of Section 380.06, Florida Statutes. 3.04. Permits. (a) The Developer shall prepare and submit to the appropriate governmental authorities, including the City, the applications for each and every Building Permit and any and all necessary Permits for the Project, and shall bear all costs of preparing such applications, applying for and obtaining such permits including applicable application, inspection, regulatory and Impact Fees or charges pertaining to the Project, including, but not limited to, any such permit, review, application, inspection, regulatory or Impact Fees. 6 Item # 3 Attachment number 1 Page 7 of 30 (b) The Agency shall cooperate with the Developer in obtaining all necessary Permits and the Building Permits required for the construction and completion of the Project. (c) The Agency's duties, obligations, or responsibilities under any section of this Agreement, specifically including but not limited to this Section 3.04 do not affect the Agency's or the City's right, duty, obligation, authority and power to act in its governmental or regulatory capacity in accordance with applicable laws, ordinances, codes or other building or project regulation. (d) Notwithstanding any other provisions of this Agreement, any required permitting, licensing or other regulatory approvals by the Agency or the City shall be subject to the established procedures and requirements of the Agency or the City with respect to review and permitting of a project of a similar or comparable nature, size and scope. In no event shall the Agency or the City, due to any provision of this Agreement, be obligated to take any action concerning regulatory approvals except through its established processes and in accordance with applicable provisions of law. 3.05. Concurrency. (a) The parties hereto recognize and acknowledge that Florida law (specifically, Part II, Chapter 163, Florida Statutes, and Rule 9J-5, Florida Administrative Code, collectively the "Growth Management Act") imposes restrictions on development if adequate public improvements are not available concurrently with that development to absorb and handle the demand on public services caused by that development. The City has created and implemented a system for monitoring the effects of development on public services within the City. The Developer recognizes and acknowledges it must satisfy the concurrency requirements of Florida law as applied to the Project. Specifically, the Developer covenants and agrees to comply with the City's land development code, including providing to the City any and all data and analysis that shows the Project will be consistent with the goals, objectives and policies of the comprehensive plan for the City, adopted by the City and in effect on the Effective Date, and the Developer further covenants and agrees to comply with concurrency certification provisions of the City's land development code. (b) The Agency represents and warrants and the Developer acknowledges that as of the Effective Date the Project as contemplated by this Agreement does not require any reservation of capacity or to seek any approvals as a result of the concurrency requirements described in subsection (a). If legally obligated in the future to comply with such requirements, the Developer agrees to seek issuance of a concurrency compliance certificate or other similar document by whatever name known and a reservation of services capacity under the City's concurrency management system, and does further agree to maintain such certificate and reservation. The Developer covenants and agrees with the Agency not to undertake any action, or fail to take any action, which would cause the City to revoke or invalidate the concurrency compliance certificate or the reservation of services capacity. 7 Item # 3 Attachment number 1 Page 8 of 30 3.06. Not a Development Order or Permit. The parties do hereby acknowledge, agree and represent that this Agreement is not intended to be and should not be construed or deemed to be a "development order" or "development permit" within the meaning of those terms in Section 163.3164, Florida Statutes. 3.07. Permitted Uses. (a) The Project shall consist of a limited services hotel and accessory uses. (b) Provided however, the following uses are prohibited: 1. All uses prohibited by the Clearwater Downtown Redevelopment Plan; 2. Nightclub or bar; 3. Alcoholic beverage package store; 4. Medical or veterinary offices. ARTICLE 4. PROJECT PLANS AND SPECIFICATIONS. 4.01. Site Plan. (a) The Developer has prepared and received approval from the CDB of a preliminary Site Plan, a copy of which is attached hereto as Exhibit B, that contemplates development of the Project consistent with this Agreement. The Developer agrees that during the term of this Agreement any material changes to the preliminary Site Plan or any subsequent versions of the Site Plan will be submitted to the City for review in accordance with the Land Development Code; and Agency for approval, which approval shall not be unreasonably withheld or delayed. (b) The Site Plan approved by the CDB, is hereby accepted by the Agency and shall be the basis for and incorporated into the Project Plans and Specifications. 4.02 Project Name. The Project from time to time may be or may have been during the development process referred to or designated as a "Residence Inn by Marriott". The Developer contemplates initially operating the Project under a franchise agreement with Marriott International, Inc. The Project will be independently owned and operated, and such designation or reference shall not be deemed to be an endorsement or guaranty of the Project by Marriott International, Inc. nor any indication that Marriott International, Inc. owns any interest in the Proj ect other than as franchisor. ARTICLE 5. CONSTRUCTION OF THE PROJECT. 8 Item # 3 Attachment number 1 Page 9 of 30 5.01. Site Clearance. Permits issued by the City for pre-construction activities on the Site, including site clearance, shall not be considered a Building Permit for purposes of this Agreement. 5.02. Construction of the Project. (a) (1) The Developer shall construct the Project on the Site substantially in accordance with the Project Plans and Specifications therefore. Subject to Unavoidable Delay and the terms and conditions in this Agreement, the Developer shall commence construction of the Project by August 15, 2007. (2) For purposes of this Section 5.02, "commence construction" of the Project means commencement of meaningful physical development of that part of the Project as authorized by the Building Permit, which shall include construction pursuant to a foundation permit, which is continued and prosecuted with reasonable diligence toward and with the objective of completion of the Project. (b) (1) After the Commencement Date, the Developer shall continue, pursue and prosecute the construction of the Project with reasonable diligence to completion by the Completion Date and shall not at any time actually or effectively have abandoned (or its Contractor having actually or effectively abandoned) the Site. For purposes of this subsection (b), "abandoned" means to have ceased any construction work which effectively advances the construction of the Project toward completion. The Developer shall complete construction of the Project no later than three (3) years from the Commencement Date. (2) All obligations of the Developer with respect to commencement, continuation and completion of construction of the Project shall be subject to delays and extensions from time to time for Unavoidable Delay. The Developer shall not be deemed to be in default of this Agreement to the extent construction or completion of the Proj ect, or any part thereof, is not complete by reason of Unavoidable Delay. (c) For purposes of this Section 5.02, "completion", "complete", "substantially complete" or "substantial completion" means, with respect to construction of the Project, a Certificate of Occupancy for the structure has been issued by the City. (d) If the Agency believes adequate progress in the construction of the Proj ect is not being made, the Agency shall give notice to the Developer that adequate progress is apparently not being made in the construction of the Project and to respond within ten (10) business days thereafter as to why adequate progress is or is not being made toward completion of the Project. 5.03. Proj ect Alterations or Improvements. During the construction of the Proj ect, the Developer may, from time to time, make alterations and improvements, structural or otherwise, to the Project as the Developer deems desirable and consistent with the Project Plans and 9 Item # 3 Attachment number 1 Page 10 of 30 Specifications for the use contemplated by this Agreement; provided, however, that prior to the commencement of any material alterations or improvements of sufficient size and scope as to constitute a material change in the previously approved Project Plans and Specifications, the Developer shall notify the Agency of such material change and may submit a change, amendment or revision to the Project Plans and Specifications to the Agency for review. Nothing in this Section 5.03 is intended nor shall be deemed to limit or restrict the exercise of governmental or regulatory powers or authority by the City or any other governmental entity or to enlarge its regulatory authority. 5.04. Completion Certificate. (a) (1) Upon the substantial completion of the construction of the Project in accordance with the provisions of this Article 5, the Developer shall prepare and execute the Completion Certificate, which shall then be delivered to the Agency. Upon receipt of the certificate the Agency shall promptly and diligently proceed to determine if construction of the Proj ect has been completed substantially in accordance with the Proj ect Plans and Specifications and this Agreement. Upon making such a determination, the Agency shall execute the certificate and return it to the Developer. The date of the Completion Certificate shall be the date when all parties shall have executed said certificate. (2) The Completion Certificate shall constitute a conclusive determination by the parties hereto of the satisfaction and termination of the obligations of the Developer hereunder to construct the Project; provided, however, that nothing in this Section 5.04 shall be a waiver of the rights, duties, obligations or responsibilities of the City or any other governmental entity acting in its regulatory or governmental capacity or an approval of said construction for purposes of the issuance of a certificate of occupancy for the Proj ect. (3) The parties agree that it is their intent that the review by the Agency for purposes of the Completion Certificate determination pursuant to this Section 5.04 is not to be an additional or duplicate inspection over and above that required for purposes of the Building Permit, including the issuance of a certificate of occupancy. The Agency agrees that for purposes of determining if the Project has been substantially completed in accordance with the Project Plans and Specifications, the issuance of a certificate of occupancy for the Project shall be a conclusive determination of substantial completion for purposes of this subsection (a) and, if such certificate has been determined to have been issued, then the Agency agrees to execute the Completion Certificate. (b) (1) If the Agency shall refuse or fail to execute the Completion Certificate after receipt of a request by the Developer to do so, then the Agency shall, within ten (10) days after its receipt of such request, provide the Developer with a written statement setting forth in reasonable detail the reason(s) why the Agency has not executed the Completion Certificate and what must be done by the Developer to satisfy such objections so that the Agency would sign the certificate. Upon the Developer satisfying the Agency's objections, then the Developer shall submit a new request to the Agency for execution of the Completion Certificate and that request 10 Item # 3 Attachment number 1 Page 11 of 30 shall be considered and acted upon in accordance with the procedures in paragraph (a)(I) for the original request. (c) The Completion Certificate shall be in a form sufficient to be recorded in the public records of Pinellas County, Florida. After execution by the Agency, it shall be promptly returned to the Developer who shall record the certificate in the public records of Pinellas County, Florida, and pay the cost of such recording. 5.05. Agency Not in Privity with Contractors. The Agency shall not be deemed to be in privity of contract with any Contractor or provider of goods or services with respect to the constructi on of any part of the Proj ect. ARTICLE 6. FINANCIAL OBLIGATIONS OF AGENCY. 6.01. Reimbursement of Impact and Permit Fees. Following execution and recordation of the Completion Certificate, the Agency shall reimburse the Developer in a total amount not to exceed one hundred and seventy-eight thousand dollars ($178,000.00) for Impact Fees and permit fees paid by the Developer for the Project as provided herein.. The Developer shall provide the Agency with documentation verifying both the amount and payment of Impact Fees and permit fees for the Project by the Developer. Within thirty (30) days after receipt of such documentation, the Agency shall review the documentation and acknowledge in writing to the Developer the amount of the Impact Fees and the permits fees to be reimbursed to the Developer (as set forth in the submitted documentation, but not to exceed $178,000.00). Reimbursement shall be made within thirty (30) days after the written acknowledgement. 6.02 Payment of Hotel development costs. In order to facilitate the development of a "Residence Inn by Marriott" within the Area, the Agency agrees to pay not to exceed four hundred thousand dollars ($400,000) of the Project development cost which represents: (i) costs for enhanced landscaping; (ii) the cost of enhanced furniture, fixtures and equipment package required by Marriott International for this location; and (iii) sums necessary to partially offset increased construction costs in order to allow the Project to meet the minimum rates of return to support the financing of the construction of the Project. This amount shall be paid as follows: a) Within sixty (60) days after the Developer has paid its annual ad valorem taxes due in connection with the Project (the "Project's Annual Ad Valorem Taxes"), the Agency shall pay Developer that portion of the tax increment generated by the City portion of the ad valorem taxes paid by the Project but not to exceed fifty percent (50%) of the increment of the Project's Annual Ad Valorem Taxes that are paid to the Agency that year (the "Annual Reimbursement"); and b) If the first Annual Reimbursement is not sufficient to satisfy the amount due, then the Annual Reimbursement shall be continued for up to five additional years (for a maximum total of six years after recordation of the Certificate of Completion) until the Agency has paid to the Developer the amount due pursuant to this subsection. However, 11 Item # 3 Attachment number 1 Page 12 of 30 in no event shall the Agency payments to Developer under this section 6.02 exceed four hundred thousand dollars ($400,000). 6.03 In the event the Project is not operated under a franchise agreement with Marriott International, Inc. or a brand or trade name generally regarded as reasonably comparable to a "Residence Inn by Marriott" under hospitality industry standards, or ceases to be so operated at anytime within six years after recordation of the Certificate of Completion; the Agency shall have no obligation to make any payments pursuant to this Article 6. ARTICLE 7. REPRESENTA TIONS, WARRANTIES AND COVENANTS OF THE DEVELOPER. 7.01. Representations and Warranties. The Developer represents and warrants to the Agency that each of the following statements is currently true and accurate and agrees the Agency may rely upon each of the following statements: (a) The Developer is a Delaware limited liability company duly organized and validly existing under the laws of the State of Florida, has all requisite power and authority to carry on its business as now conducted, to own or hold its properties and to enter into and perform its obligations hereunder and under each document or instrument contemplated by this Agreement to which it is or will be a party, is qualified to do business in the State of Florida, and has consented to service of process upon a designated agent for service of process in the State of Florida. (b) This Agreement and, to the extent such documents presently exist in form accepted by the Agency and the Developer, each document contemplated or required by this Agreement to which Developer is or will be a party have been duly authorized by all necessary action on the part of, and have been or will be duly executed and delivered by, the Developer, and neither the execution and delivery thereof, nor compliance with the terms and provisions thereof or hereof: (1) requires the approval and consent of any other party, except such as have been duly obtained or as are specifically noted herein, (2) contravenes any existing law, judgment, governmental rule, regulation or order applicable to or binding on the Developer, (3) contravenes or results in any breach of, default under or, other than as contemplated by this Agreement, results in the creation of any lien or encumbrance upon any property of the Developer under any indenture, mortgage, deed of trust, bank loan or credit agreement, the Developer's articles of organization, or, any other agreement or instrument to which the Developer is a party or by which the Developer may be bound. (c) This Agreement and, to the extent such documents presently exist in form accepted by the Agency and the Developer, each document contemplated or required by this Agreement to which the Developer is or will be a party constitutes, or when entered into will 12 Item # 3 Attachment number 1 Page 13 of 30 constitute, a legal, valid and binding obligation of the Developer enforceable against the Developer in accordance with the terms thereof, except as such enforceability may be limited by applicable bankruptcy, insolvency or similar laws from time to time in effect which affect creditors' rights generally and subject to usual equitable principles in the event that equitable remedies are involved. (d) There are no pending or, to the knowledge of the Developer, threatened actions or proceedings before any court or administrative agency against the Developer, or against any controlling manager, member, employee or agent of the Developer, which question the validity of this Agreement or any document contemplated hereunder, or which are likely in any case, or in the aggregate, to materially adversely affect the consummation of the transactions contemplated hereunder or the financial condition of the Developer. (e) The Developer has filed or caused to be filed all federal, state, local and foreign tax returns, if any, which were required to be filed by the Developer, and has paid, or caused to be paid, all taxes shown to be due and payable on such returns or on any assessments levied against the Developer. (f) All financial information and other documentation, including that pertaining to the Proj ect or the Developer, delivered by the Developer to the City and the Agency, was, on the date of delivery thereof, true and correct. (g) The principal place of business and principal executive offices of the Developer are in 3100 University Boulevard South, Suite 200, Jacksonville, Florida 32216 and, until the expiration or termination of this Agreement, the Developer will keep original or duplicate records concerning the Project (such as construction contracts, financing documents and corporate documents) and all contracts, licenses and similar rights relating thereto at an office located in the corporate limits of the City of Clearwater. (h) As of the Effective Date, the Developer has the financial capability to carry out its obligations and responsibilities in connection with the development of the Project as contemplated by this Agreement. (i) The Developer (with the assistance of its Project Professionals) has the experience, expertise, and capability to develop, cause the construction, and complete the Project and, oversee and manage the design, planning, construction, and completion of the Proj ect, and to acquire the Site as provided herein. 7.02. Covenants. The Developer covenants with the Agency that until the earlier of the Termination Date or the Expiration Date: (a) The Developer shall timely perform or cause to be performed all of the obligations contained herein which are the responsibility of the Developer to perform. 13 Item # 3 Attachment number 1 Page 14 of 30 (b) The Developer shall assist and cooperate with the Agency to accomplish the development of the Project by the Developer in accordance with this Agreement, and the Project Plans and Specifications and will not violate any laws, ordinances, rules, regulations, orders, contracts or agreements that are or will be applicable thereto, including the Plan and the Act. (c) Subsequent to the Effective Date, the Developer shall maintain its financial capability to develop, construct and complete the Project and shall promptly notify the Agency of any event, condition, occurrence, or change in its financial condition which materially adversely affects, or with the passage of time is likely to adversely affect, the Developer's financial capability to successfully and completely develop, construct and complete the Project as contemplated hereby. (d) The Developer shall promptly cause to be filed when due all federal, state, local and foreign tax returns required to be filed by it, and shall promptly pay when due any tax required thereby so as to avoid an uncured tax lien against the Site. (e) Subject to and except as permitted by Section 11.01, prior to the expiration or termination of this Agreement, the Developer shall maintain its existence, will not dissolve or substantially dissolve all of its assets and will not consolidate with or merge into another limited liability company, corporation, limited partnership, or other entity without the prior approval of the Agency, unless the Developer is the surviving entity or retains a controlling interest in the consolidated or merged entity, in which case no consent by Agency shall be required. In any event, prior to the expiration or termination of this Agreement, the Developer, will promptly notify the Agency of any changes to the existence or form of the corporation of Developer. (f) The Developer shall not sell, lease, transfer or otherwise dispose of all or substantially all its assets without adequate consideration and will otherwise take no action which shall have the effect, singularly or in the aggregate, of rendering Developer unable to continue to observe and perform the covenants, agreements, and conditions hereof and the performance of all other obligations required by this Agreement. (g) Provided all conditions precedent thereto have been satisfied or waived as provided herein, the Developer shall design, construct and complete the Project such that it is substantially complete as provided in this Agreement no later than the Completion Date. 7.03 Covenant: Nondiscrimination. The Developer covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, ancestry or national origin in the marketing, sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the site, nor shall the Developer itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Site. 14 Item # 3 Attachment number 1 Page 15 of 30 ARTICLE 8. REPRESENTA TIONS, WARRANTIES AND COVENANTS OF THE AGENCY. 8.01. Representations and Warranties. The Agency represents and warrants to the Developer that each of the following statements is currently true and accurate and agrees that the Developer may rely on each of the following statements: (a) The Agency is a validly existing body corporate and politic of the State of Florida, is the duly created community redevelopment agency of the City under Part III, Chapter 163, Florida Statutes (known as the Community Redevelopment Act of 1969), has all requisite corporate power and authority to carry on its business as now conducted and to perform its obligations hereunder and under each document or instrument contemplated by this Agreement to which it is or will be a party. (b) This Agreement and, to the extent such documents presently exist in form accepted by the Agency and the Developer, each document contemplated or required by this Agreement to which the Agency is or will be a party have been duly authorized by all necessary action on the part of, and have been or will be duly executed and delivered by, the Agency, and neither the execution and delivery thereof, nor compliance with the terms and provisions thereof or hereof (1) requires the approval and consent of any other party, except such as have been duly obtained or as are specifically noted herein, (2) contravenes any existing law, judgment, governmental rule, regulation or order applicable to or binding on the Agency, (3) contravenes or results in any breach of, or default under or, other than as contemplated by this Agreement, results in the creation of any lien or encumbrance upon any property of the Agency under any indenture, mortgage, deed of trust, bank loan or credit agreement, applicable ordinances, resolutions or, on the date of this Agreement, any other agreement or instrument to which the Agency is a party, specifically including any covenants of any bonds, notes, or other forms of indebtedness of the Agency outstanding on the Effective Date. (c) This Agreement and, to the extent such documents presently exist in form accepted by the Agency and the Developer, each document contemplated or required by this Agreement to which the Agency is or will be a party constitute, or when entered into will constitute, legal, valid and binding obligations of the Agency enforceable against the Agency in accordance with the terms thereof, except as such enforceability may be limited by public policy or applicable bankruptcy, insolvency or similar laws from time to time in effect which affect creditors' rights generally and subject to usual equitable principles in the event that equitable remedies are involved. (d) There are no pending or threatened actions or proceedings before any court or administrative agency against the Agency, or against any officer of the Agency, which question the validity of any document contemplated hereunder, or which are likely in any case, or in the aggregate, to materially adversely affect the consummation of the transactions contemplated hereunder or the financial condition of the Agency. 15 Item # 3 Attachment number 1 Page 16 of 30 8.02. Covenants. The Agency covenants with the Developer that until the earlier of the Termination Date or the Expiration Date: (a) The Agency shall timely perform or cause to be performed all of the obligations contained herein which are the responsibility of the Agency to perform. (b) During each year that this Agreement and the obligations of the Agency under this Agreement shall be in effect, the Agency shall cause to be executed and to continue to be in effect those instruments, documents, certificates, permits, licenses and approvals, and shall cause to occur those events contemplated by this Agreement that are applicable to and are the responsibility of the Agency. (c) The Agency shall assist and cooperate with the Developer to accomplish the development of the Project in accordance with this Agreement and the Project Plans and Specifications, will carry out its duties and responsibilities contemplated by this Agreement, and will not violate any laws, ordinances, rules, regulations, orders, contracts, or agreements that are or will be applicable thereto, and, to the extent permitted by law, the Agency will not enact or adopt or urge or encourage the adoption of any ordinances, resolutions, rules, regulations or orders or approve or enter into any contracts or agreements, including issuing any bonds, notes, or other forms of indebtedness, that will result in any provision of this Agreement to be in violation thereof. (d) The Agency shall maintain its financial capability to carry out its responsibilities as contemplated by this Agreement and shall notify the Developer of any event, condition, occurrence, or change in its financial condition which adversely affects, or with the passage of time is likely to adversely affect, the Agency's financial capability to carry out its responsibilities contemplated hereby. ARTICLE 9. DEFAULT; TERMINATION. 9.01. Default by Developer. (a) Provided the Agency is not then in default of this Agreement under Section 9.02 hereof, there shall be an "event of default" by the Developer upon the occurrence of anyone or more of the following after the Effective Date: (1) The Developer shall fail to perform or comply with any material provision of this Agreement applicable to it within the time prescribed therefor; provided, however, that suspension of or delay in performance by the Developer during any period in which the Agency is in default of this Agreement as provided in Section 9.02 hereof will not constitute an event of default by the Developer under this subsection (a); or (2) The Developer shall make a general assignment for the benefit of its creditors, or shall admit in writing its inability to pay its debts as they become due or shall file a 16 Item # 3 Attachment number 1 Page 17 of 30 petition in bankruptcy, or shall be adjudicated a bankrupt or insolvent, or shall file a petition seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation or shall file an answer admitting, or shall fail reasonably to contest, the material allegations of a petition filed against it in any such proceeding, or shall seek or consent to or acquiesce in the appointment of any trustee, receiver or liquidator of the Developer or any material part of such entity's properties; or (3) Within sixty (60) days after the commencement of any proceeding by or against the Developer seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation, such proceeding shall not have been dismissed or otherwise terminated, or if, within sixty (60) days after the appointment without the consent or acquiescence of the Developer of any trustee, receiver or liquidator of any of such entities or of any material part of any of such entity's properties, such appointment shall not have been vacated. (b) (1) If an event of default by the Developer described in subsection (a) above shall occur, the Agency shall provide written notice thereof to the Developer, and, if such event of default shall not be cured by the Developer within thirty (30) days after receipt of the written notice from the Agency specifying in reasonable detail the event of default by the Developer, or if such event of default is of such nature that it cannot be completely cured within such time period, then if the Agency is not then in default of this Agreement and the Developer shall not have commenced to cure such default within such thirty (30) day period and shall not diligently prosecute such cure to completion within such reasonable longer period of time as may be necessary then, in addition to any remedy available under Section 9.03, the Agency may terminate this Agreement or pursue any and all legal or equitable remedies to which the Agency is entitled, provided, however, if the Developer shall fail to cure such event of default within said thirty (30) day or longer period or ceases to proceed diligently to timely cure such event of default, then the Agency may proceed to enforce other available remedies without providing any additional notice to the Developer. (2) Any attempt by the Agency to pursue any of the above referenced remedies will not be deemed an exclusive election of remedy or waiver of the Agency's right to pursue any other remedy to which either may be entitled. (3) Any time periods or deadlines provided in this Agreement shall be tolled or extended by the amount of time to cure any event of default hereunder if such event affects the Developer's or Agency's ability to perform by such deadline or the expiration of such period. (d) In the event of a termination of this Agreement pursuant to this Section 9.01, the Agency shall not be obligated to make or to continue to make any payments or reimbursements pursuant to Article 6. 9.02. Default by the Agency. 17 Item # 3 Attachment number 1 Page 18 of 30 (a) Provided the Developer is not then in default under Section 9.01, there shall be an "event of default" by the Agency under this Agreement in the event the Agency shall fail to perform or comply with any material provision of this Agreement applicable to it; provided, however, that suspension of or delay in performance by the Agency during any period in which the Developer is in default of this Agreement as provided in Section 9.01 hereof will not constitute an event of default by the Agency under this subsection (a). (b) If an event of default by the Agency described in subsection (a) shall occur, the Developer shall provide written notice thereof to the Agency, and, after expiration of the curative period described in paragraph ( c) below, may terminate this Agreement, institute an action to compel specific performance of the terms hereof by the Agency or pursue any and all legal or equitable remedies to which the Developer is entitled; provided, however, if the event of default by the Agency occurs on or prior to the Commencement Date, any monetary recovery by the Developer in any such action shall not include any lost profits or consequential damages and shall be limited to bona fide third-party out-of-pocket costs and expenses, including reasonable attorneys' fees, incurred by the Developer in connection with the negotiation of this Agreement as well as any investigation, due diligence, development, design or construction costs incurred by the Developer in connection with the proposed acquisition and development of the Site, unless any such default by the Agency was willful and committed in bad faith with reckless disregard for the rights of the Developer. (c) The Developer may not terminate this Agreement or institute an action described in paragraph (b) above if the Agency cures such event of default within thirty (30) days after receipt by the Agency of written notice from the Developer specifying in reasonable detail the event of default by the Agency, or if any such event of default is of such nature that it cannot be completely cured within such period, then within such reasonably longer period of time as may be necessary to cure such default, provided however, if the Agency is proceeding diligently and in good faith, the curative period shall be extended for a period of not exceeding an aggregate of thirty (30) days without any approval or consent of the Developer being required, but such approval will be required (and shall be given or withheld in Developer's sole discretion) if the curative period is to be extended beyond thirty (30) days after the notice of default has been given by the Developer to the Agency if the Agency has commenced to cure such default within such thirty (30) day period and is diligently prosecuting such curative action to completion. The Agency shall within said thirty (30) day period or such longer period promptly, diligently and in good faith proceed to cure such event of default after receipt of the notice from the Developer and shall succeed in curing such event of default within said period of time, provided, however, if the Agency shall fail to cure such event of default within said thirty (30) day or longer period or ceases to proceed diligently to timely cure such event of default, then the Developer may proceed with its available remedies without providing any additional notice to the Agency. (d) Any attempt by the Developer to pursue any of the remedies referred to in paragraphs (a), (b), or (c) above will not be deemed an exclusive election of remedy or waiver of the Developer's right to pursue any other remedy to which it might be entitled. 18 Item # 3 Attachment number 1 Page 19 of 30 (e) Any time periods or deadlines provided in this Agreement shall be tolled or extended by the amount of time to cure any event of default hereunder if such event affects the Developer's or Agency's ability to perform by such deadline or the expiration of such period. 9.03. Obligations, Rights and Remedies Cumulative. Unless specifically stated herein to the contrary, the specified rights and remedies to which either the Agency or the Developer are entitled under this Agreement are not exclusive and are intended to be in addition to any other remedies or means of redress to which the Agency or the Developer may lawfully be entitled and are not specifically prohibited by this Agreement. The suspension of, or delay in, the performance of its obligations by the Developer, while the Agency shall at such time be in default of their obligations hereunder shall not be deemed to be an "event of default". The suspension of, or delay in, the performance of the obligations by the Agency while the Developer shall at such time be in default of its obligations hereunder shall not be deemed to be an "event of default" by the Agency. 9.04. Non-Action on Failure to Observe Provisions of this Agreement. The failure of the Agency or the Developer to promptly or continually insist upon strict performance of any term, covenant, condition or provision of this Agreement, or any Exhibit hereto, or any other agreement, instrument or document of whatever form or nature contemplated hereby shall not be deemed a waiver of any right or remedy that the Agency or the Developer may have, and shall not be deemed a waiver of a subsequent default or nonperformance of such term, covenant, condition or provision. 9.05. Termination. (a) The Developer and the Agency acknowledge and agree that as of the Effective Date certain matters mutually agreed by the parties hereto are essential to the successful development of the Project have not been satisfied or are subject to certain conditions, legal requirements or approvals beyond the control of any of the parties hereto or which cannot be definitely resolved under this Agreement. In recognition of these events or conditions, the parties hereto mutually agree that, provided the appropriate or responsible party therefor diligently and in good faith seeks to the fullest extent of its capabilities to cause such event or condition to occur or be satisfied, the failure of the events or conditions listed in subsection (b) below to occur or be satisfied shall not constitute an event of default by any party under this Article 9, but may be the basis for a termination of this Agreement as provided in this Section 9.05. (b) In addition to any other rights of termination provided elsewhere in this Agreement, this Agreement may be terminated as provided in subsection ( c) after the occurrence of any of the foll owing events or condi ti ons: (1) All of the Site is taken by the exercise of the power of eminent domain by a governmental authority (except the City or the Agency) or a person entitled to exercise such power or benefiting therefrom, or such part of the Site is taken by the power of eminent domain 19 Item # 3 Attachment number 1 Page 20 of 30 so as to render the Project commercially unfeasible or unusable for its intended uses as contemplated by this Agreement; (2) The appropriate governmental authority (but not including the City in exercise of its governmental and regulatory authority and responsibility), upon petition by the Developer, unduly delays or denies or fails to issue the Permits, issue the Building Permits, or approve any other land use approval necessary to commence construction of the Project on the Site; (3) A moratorium on new construction is imposed by a governmental authority within the City or Pinellas County so as to prevent construction of the Project to commence; (4) The City or other appropriate governmental authority has issued a concurrency compliance certificate or a reservation of services capacity as described in Section 3.05 and such certificate or reservation has been revoked, repealed, superseded, or otherwise no longer of any effect or the Developer is unable to rely upon such certificate or reservation, if such a certificate or reservation is required for development of the Project on the Site, and the Developer cannot obtain a new or replacement certificate or reservation for the Project. (5) The City approves an amendment to the Plan which is inconsistent with the Project being located on the Site. (6) Utilities are not readily available at the boundaries of the Site at locations satisfactory to the Developer by the Closing Date. (c) Upon the occurrence of an event described in subsection (b), then the Developer or the Agency may upon determining that such event cannot reasonably be expected to change in the foreseeable future so as to allow development of the Project, may elect to terminate this Agreement by giving a notice to the other party hereto within thirty (30) days of the occurrence of such event or the determination of inability to cause a condition precedent to occur or be satisfied, stating its election to terminate this Agreement as a result thereof, in which case this Agreement shall then terminate, provided, however, only the Developer may elect to terminate this Agreement upon the occurrence of an event described in paragraph (5) and (6). (d) In the event of a termination pursuant to Section 9.05(b), neither the Developer nor the Agency shall be obligated or liable one to the other in any way, financially or otherwise, for any claim or matter arising from or as a result of this Agreement or any actions taken by the Developer and the Agency, or any of them, hereunder or contemplated hereby, and each party shall be responsible for its own costs. (e) Notwithstanding anything to the contrary contained herein, in the event that any party shall have, but shall not exercise, the right hereunder to terminate this Agreement because of the non-satisfaction of any condition specified herein, and such condition is subsequently 20 Item # 3 Attachment number 1 Page 21 of 30 satisfied, then the non-satisfaction of such condition shall no longer be the basis for termination of this Agreement. 9.06. Termination Certificate. (a) In the event of a termination of this Agreement for any reason prior to the Expiration Date, each of the parties hereto do covenant and agree with each other to promptly execute a certificate prepared by the party electing to terminate this Agreement, which certificate shall expressly state that this Agreement has been terminated in accordance with its terms, is no longer of any force and effect except for those provisions hereof which expressly survive termination, that the rights, duties and obligations of the parties hereto have been terminated and released (subject to those surviving provisions hereof) and that the Site is no longer subject to any restrictions, limitations or encumbrances imposed by this Agreement. (b) The certificate described in subsection (a) shall be prepared in a form suitable for recording and promptly after execution by all of the parties hereto shall be recorded in the public records of Pinellas County, Florida. The cost of recording the termination certificate shall be paid by the terminating party. 9.07 Remedies. All remedies provided for herein and under Florida law shall be cumulative and shall survive the technical termination of this Agreement pursuant to execution, delivery and recordation of a Termination Certificate or otherwise hereunder. ARTICLE 10. UNAVOIDABLE DELAY. 10.01. Unavoidable Delay. (a) Any delay in performance of or inability to perform any obligation under this Agreement (other than an obligation to pay money) due to any event or condition described in paragraph (2) as an event of "Unavoidable Delay" shall be excused in the manner provided in this Section 10.01. (b) "Unavoidable Delay" means any of the following events or conditions or any combination thereof: acts of God, acts of the public enemy, riot, insurrection, terrorist attack, war, pestilence, archaeological excavations required by law, unavailability of materials after timely ordering of same, epidemics, quarantine restrictions, freight embargoes, fire, lightning, hurricanes, earthquakes, tornadoes, floods, extremely abnormal and excessively inclement weather (as indicated by the records of the local weather bureau for a five-year period preceding the Effective Date), strikes or labor disturbances, delays due to proceedings under Chapters 73 and 74, Florida Statutes, restoration in connection with any of the foregoing or any other cause beyond the reasonable control of the party performing the obligation in question, including, without limitation, such causes as may arise from the act of the other party to this Agreement, or acts of any governmental authority (except that acts of the Agency shall not constitute an Unavoidable Delay with respect to performance by the Agency). 21 Item # 3 Attachment number 1 Page 22 of 30 (c) An application by any party hereto (referred to in this paragraph (c) and in paragraph (d) as the "Applicant") for an extension of time pursuant to subsection (a) must be in writing, must set forth in detail the reasons and causes of delay, and must be filed with the other party to this Agreement within thirty (30) days following the occurrence of the event or condition causing the Unavoidable Delay or thirty (30) days following the Applicant becoming aware (or with the exercise of reasonable diligence should have become aware) of such occurrence. (d) The Applicant shall be entitled to an extension of time for an Unavoidable Delay only for the number of days of delay due solely to the occurrence of the event or condition causing such Unavoidable Delay and only to the extent that any such occurrence actually delays that party from proceeding with its rights, duties and obligations under this Agreement affected by such occurrence. ARTICLE 11. MISCELLANEOUS. 11.01. Assignments. (a) (1) Prior to the earlier of the Termination Date or the Expiration Date, the Developer may sell, convey, assign or otherwise dispose of any or all of its right, title, interest and obligations in and to the Project, or any part thereof to any person with the prior written consent of the Agency, provided that such party (hereinafter referred to as the "assignee"), to the extent of the sale, conveyance, assignment or other disposition by the Developer to the assignee, shall be bound by the terms of this Agreement the same as the Developer for such part of the Project as is subject to such sale, conveyance, assignment or other disposition. (2) If the assignee of Developer's right, title, interest and obligations in and to the Proj ect, or any part thereof, assumes all of Developer's obligations hereunder for the Proj ect, or that part subject to such sale, conveyance, assignment or other disposition, then the Developer shall be released from all such obligations hereunder which have been so assumed by the assignee, and the Agency agrees to execute an instrument evidencing such release, which shall be in recordable form. (b) An assignment of the Proj ect, or any part thereof, by the Developer to any corporation, limited partnership, general partnership, or joint venture, in which the Developer is the or a general partner or has either the controlling interest or through a joint venture or other arrangement shares equal management rights with a financial institution and maintains such controlling interest or equal management rights for the term of this Agreement shall not be deemed an assignment or transfer subject to any restriction on or approvals of assignments or transfers imposed by this Section 11.01, provided, however, that notice of such assignment shall be given by the Developer to the Agency no less than thirty (30) days prior to such assignment being effective and the assignee shall be bound by the terms of this Agreement to the same extent as would the Developer in the absence of such assignment. If the Developer shall at any 22 Item # 3 Attachment number 1 Page 23 of 30 time withdraw or be replaced as a general partner or no longer have the controlling interest or management rights as described in this subsection, then that event shall constitute an assignment of the Developer's right, title, interest or obligations under this Agreement for purposes of this Section 11.01 and the prior approval of the Agency shall be obtained before such an event shall be effective. (c) If the Developer shall sell, convey, assign or otherwise dispose of any or all of its right, title, interest and obligations in and to the Project for use as a limited services hotel to be operated other than under a franchise agreement with Marriott International, Inc., then the Agency shall have the right to terminate this Agreement unless the assignee or the franchisor of the assignee shall operate the limited services hotel under a brand or trade name generally regarded as reasonably comparable to a "Residence Inn by Marriott" under hospitality industry standards. 11.02. Successors and Assigns. The terms herein contained shall bind and inure to the benefit of the Agency, and its successors and assigns, and the Developer, and its successors and assigns, except as may otherwise be specifically provided herein. 11.03. Notices. (a) All notices, demands, requests for approvals or other communications given by either party to another shall be in writing, and shall be sent by registered or certified mail, postage prepaid, return receipt requested or by overnight courier service, or by hand delivery to the office for each party indicated below and addressed as follows: To the Developer: Clearwater Hospitality Properties, L.L.C. c/o The Clarkson Company 3100 University Boulevard South, Suite 200 Jacksonville, Florida 32216 Attention: To the Agency: Community Redevelopment Agency of the City of Clearwater 112 S. Osceola Avenue Clearwater, FL 33756 Attention: Rod Irwin with copies to: Mi chael A. Altes, Esq. 4219 Lexington Avenue Jacksonville, Florida 32210 with copies to: City of Clearwater 112 S. Osceola Avenue Clearwater, FL 33756 Attention: City Attorney (b) Notices given by courier service or by hand delivery shall be effective upon delivery and notices given by mail shall be effective on the third (3rd) business day after mailing. Refusal by any person to accept delivery of any notice delivered to the office at the address indicated above (or as it may be changed) shall be deemed to have been an effective delivery as provided in this Section 11.03. The addresses to which notices are to be sent may be changed from time to time by written notice delivered to the other parties and such notices shall be 23 Item # 3 Attachment number 1 Page 24 of 30 effective upon receipt. Until notice of change of address is received as to any particular party hereto, all other parties may rely upon the last address given. 11.04. Severability. If any term, provision or condition contained this Agreement shall, to any extent, be held invalid or unenforceable, the remainder of this Agreement, or the application of such term, provision or condition to persons or circumstances other than those in respect of which it is invalid or unenforceable, shall not be affected thereby, and each term, provision and condition of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 11.05. Applicable Law and Construction. The laws of the State of Florida shall govern the validity, performance and enforcement of this Agreement. This Agreement has been negotiated by the Agency and the Developer, and the Agreement, including, without limitation, the Exhibits, shall not be deemed to have been prepared by the Agency or the Developer, but by all equally. 11.06. Venue; Submission to Jurisdiction. (a) For purposes of any suit, action, or other proceeding arising out of or relating to this Agreement, the parties hereto do acknowledge, consent, and agree that venue thereof is Pinellas County, Florida. (b) Each party to this Agreement hereby submits to the jurisdiction of the State of Florida, Pinellas County and the courts thereof and to the jurisdiction of the United States District Court for the Middle District of Florida, for the purposes of any suit, action, or other proceeding arising out of or relating to this Agreement and hereby agrees not to assert by way of a motion as a defense or otherwise that such action is brought in an inconvenient forum or that the venue of such action is improper or that the subject matter thereof may not be enforced in or by such courts. (c) If at any time during the term of this Agreement the Developer is not a resident of the State of Florida or has no office, employee, agency or general partner thereof available for service of process as a resident of the State of Florida, or if any permitted assignee thereof shall be a foreign corporation, partnership or other entity or shall have no officer, employee, agent, or general partner available for service of process in the State of Florida, the Developer hereby designates the Secretary of State, State of Florida, its agent for the service of process in any court action between it and the Agency arising out of or relating to this Agreement and such service shall be made as provided by the laws of the State of Florida for service upon a non-resident; provided, however, that at the time of service on the Florida Secretary of State, a copy of such service shall be delivered to the Developer at the address for notices as provided in Section 11.03. 11.07. Agreement Not a Chapter 86-191, Laws of Florida, Development Agreement. The Developer and the Agency acknowledge, agree and represent that this Agreement, including, 24 Item # 3 Attachment number 1 Page 25 of 30 without limitation, any of the Exhibits, is not a development agreement as described in Sections 19-31, Chapter 86-191, Laws of Florida, codified as Sections 163.3220-163.3243, Florida Statutes. 11.08. Estoppel Certificates. The Developer and the Agency shall at any time and from time to time, upon not less than ten (10) days prior notice by another party hereto, execute, acknowledge and deliver to the other parties a statement in recordable form certifying that this Agreement has not been modified and is in full force and effect (or if there have been modifications that the said Agreement as modified is in full force and effect and setting forth a notation of such modifications), and that to the knowledge of such party, neither it nor any other party is then in default hereof (or if another party is then in default hereof, stating the nature and details of such default), it being intended that any such statement delivered pursuant to this Section 11.08 may be relied upon by any prospective purchaser, mortgagee, successor, assignee of any mortgage or assignee of the respective interest in the Proj ect, if any, of any party made in accordance with the provisions of this Agreement. 11.09. Complete Agreement; Amendments. (a) This Agreement, and all the terms and provisions contained herein, including without limitation the Exhibits hereto, constitute the full and complete agreement between the parties hereto to the date hereof, and supersedes and controls over any and all prior agreements, understandings, representations, correspondence and statements whether written or oral, including the Proposal. (b) Any provisions of this Agreement shall be read and applied in para materia with all other provisions hereof. (c) This Agreement cannot be changed or revised except by written amendment signed by all parties hereto. 11.10. Captions. The article and section headings and captions of this Agreement and the table of contents preceding this Agreement are for convenience and reference only and in no way define, limit, describe the scope or intent of this Agreement or any part thereof, or in any way affect this Agreement or construe any article, section, subsection, paragraph or provision hereof. 11.11. Holidays. It is hereby agreed and declared that whenever a notice or performance under the terms of this Agreement is to be made or given on a Saturday or Sunday or on a legal holiday observed in the City, it shall be postponed to the next following business day. 11.12. Exhibits. Each Exhibit referred to and attached to this Agreement is an essential part of this Agreement. The Exhibits and any amendments or revisions thereto, even if not physically attached hereto shall be treated as if they are part of this Agreement. 25 Item # 3 Attachment number 1 Page 26 of 30 11.13. No Brokers. The Agency and the Developer hereby represent, agree and acknowledge that no real estate broker or other person is entitled to claim or to be paid a commission as a result of the execution and delivery of this Agreement, including any of the Exhibits, or any proposed improvement, use, disposition, lease, conveyance or acquisition of any or all of the Site. 11.14. Not an Agent. During the term of this Agreement, the Developer hereunder shall not be an agent of the City or the Agency, with respect to any and all services to be performed by the Developer (and any of its agents, assigns, or successors) with respect to the Project, and the Agency is not an agent of the Developer (and any of its agents, assigns, or successors). 11.15. Memorandum of Development Agreement. The Agency and the Developer agree to execute, in recordable form, on the Effective Date, the short form "Memorandum of Agreement for Development and Disposition of Property", the form of which is attached hereto as Exhibit D, and agree, authorize and hereby direct such Memorandum to be recorded in the public records of Pinellas County, Florida, as soon as possible after execution thereof. The Agency shall pay the cost of such recording. 11.16. Public Purpose. The parties acknowledge and agree that this Agreement satisfies, fulfills and is pursuant to and for a public purpose and municipal purpose and is in the public interest, and is a proper exercise of the Agency's power and authority under the Act. 11.17. No General Obligation. In no event shall any obligation of the Agency under this Agreement be or constitute a general obligation or indebtedness of the City or the Agency, a pledge of the ad valorem taxing power of the City or the Agency or a general obligation or indebtedness of the City or the Agency within the meaning of the Constitution of the State of Florida or any other applicable laws, but shall be payable solely from legally available revenues and funds. Neither the Developer nor any other party under or beneficiary of this Agreement shall ever have the right to compel the exercise of the ad valorem taxing power of the City, the Agency or any other governmental entity or taxation in any form on any real or personal property to pay the City's or the Agency's obligations or undertakings hereunder. 11.18. Technical Amendments; Survey Corrections. In the event that due to minor inaccuracies contained herein or any Exhibit attached hereto or any other agreement contemplated hereby, or due to changes resulting from technical matters arising during the term of this Agreement, the parties agree that amendments to this Agreement required due to such inaccuracies, unforeseen events or circumstances which do not change the substance of this Agreement may be made and incorporated herein. The Chairman of the Agency is authorized to approve such technical amendments on behalf of the Agency, respectively, and is authorized to execute any required instruments, to make and incorporate such amendment to this Agreement or any Exhibit attached hereto or any other agreement contemplated hereby. 11.19. Term; Expiration; Certificate. 26 Item # 3 Attachment number 1 Page 27 of 30 (a) If not earlier terminated as provided in Section 9.05, the term of this Agreement shall expire and this Agreement shall no longer be of any force and effect (except for those matters which specifically survive such expiration) on the tenth (10th) anniversary of the Effective Date. (b) Upon completion of the term of this Agreement, all parties hereto shall execute the Agreement Expiration Certificate. The Agreement Expiration Certificate shall constitute (and it shall be so provided in the certificate) a conclusive determination of satisfactory completion of all obligations hereunder and the expiration of this Agreement. (c) The Agreement Expiration Certificate shall be in such form as will enable it to be recorded in the public records of Pinellas County, Florida. Following execution by all of the parties hereto, the Agreement Expiration Certificate shall promptly be recorded by the Developer in the public records of Pinellas County, Florida, and the Developer shall pay the cost of such recording. 11.20. Effective Date. Following execution of this Agreement (and such of the Exhibits as are contemplated to be executed simultaneously with this Agreement) by the authorized officers of the Agency and by authorized representatives of the Developer following approval hereof by the Agency and the Developer, this Agreement (and any executed Exhibits) shall be in full force and effect in accordance with its terms and upon the recording of the Memorandum of Development Agreement as contemplated by Section 11.15 hereof. IN WITNESS WHEREOF, the parties hereto have set their hands and their respective seals affixed as of this day of ,2007. COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA By: , Chairperson Approved as to form: ATTEST: By: Pamela K. Akin, City Attorney Cynthia E. Goudeau, City Clerk CLEARWATER HOSPITALITY PROPERTIES, L.L.C., a Delaware limited liability company By: 27 Item # 3 Attachment number 1 Page 28 of 30 , its STATE OF FLORIDA COUNTY OF PINELLAS The foregoing instrument was acknowledged before me this _ day of , 2007, by as of Clearwater Hospitality Properties, L.L.C., a Delaware limited liability company, on behalf of such limited liability company. He or she is personally known to me or have produced a valid driver's license as identification. (SEAL) Printed/Typed Name: Notary Public-State of Florida Commission Number: 28 Item # 3 Attachment number 1 Page 29 of 30 LIST OF EXHIBITS Legal Description EXHIBIT A EXHIBIT B Site Plan Intentionally Omitted EXHIBIT C Memorandum of Agreement for Development and Disposition of Property EXHIBIT D Agreement Expiration Certificate EXHIBIT E Agreement Termination Certificate EXHIBIT F 29 Item # 3 Attachment number 1 Page 30 of 30 EXHIBIT A LEGAL DESCRIPTION Parcel 1: All of Lots 11 and 12 and that portion of Lots 13 through 18 inclusive lying on the northerly side of Court Street in Block C, COACHMAN HEIGHTS REPLAT, including the south one-half of vacated Haven Street on the northerly side of said Lot 11, as recorded in Plat Book 20, page 26, public records of Duval County, Florida. Parcel 2: All of Lot 1 and that portion of Lots 2 and 3 lying north and east of Court Street in Block C, COACHMAN HEIGHTS REPLAT, including the south one-half of vacated Haven Street lying north of and adjacent to said Lot 1, as recorded in Plat Book 20, page 26, public records of Duval County, Florida. 30 Item # 3 ~~~ m~ 0 ir:i 00"; O>w :::I:': ~~~~~ <( iz ~~~~~ 2Z' ~i5.J o '" "OW :r:~ ~<~ 2<U ~IU . <~ 0 ,!. ~~:~ ~~!:! ~~~ 2U< ~~~~ e~ ~S!l:l~; ii: < 0<0 Ul 00 Ow. wi~:n ~m ~~ ~~~-ill: " ~~ . .0. Ig~ ";"0 ~~ :::. 0 8 ~~ eU8 6<~ ~~~g ~ 1i ..J i~ ~~~;i ~~ ~ ~3~ ~~! " ... ; "20 -,' ~~8B ~ JOI-I ~g I~ 8li~ '.0 ~. '" <Z:J-<( ~8 ~~~~~ ~~ ." ~D..Vl 0 a~ I!! ~~~~ :r<<l:l . O' <, ~~: ~88 00 ~~~~ ~~ ~ U1~,.jli: o' 2" ~Ei WWW ~ wO <00 ~H ~d j::':-<i!S ~~~~ :~ ~~~~~ ~!:! ~j 000 H j~~~ :gg ~. ~~~~ ~~ ~~g ~~~ ~2~ Zz i~g~ WU ~~ GO i:i~ <F R. g~ '" ;~ ~i~~~ ~~~ fI! ~~ <( ~~g~ ~~ ~~ ~~ ~~~ ~~ I"~ ~ f11 .~ i~ " . ~ ti;; () .. J $ .!iZ'l<l<1i> ..OZ.l<O.OO S 3nN3AV ~N1M3 " ~. ~~ ~Rti:. ltil~ ~~;; I. ~~i5~ ~ ~ (.I.'tld ~Jd ^~M-30-J.H~Ii:l JOIIfI ,01<) / 4;.J~..," . "",,~~~.4i f!...:J, 'lot) ;;~. I!! Vi >-"'ZZIO.,c ~~~~~~ mUi e ;~~~: mm ~~~~~~: z <( ..J 11. #'<fr<l' ~~ ~~ ,< (.I.V'ld l:lJd ,l....."'-.:I0-H-l!)1l:l _3~ _ + . 3nN3AV' .L03dSO~d H.LnOS Q:~ <" .J1II':"; G~ ~ :i!~ ~ vi<li<Ji!/lvi<Jivi .;;- ;;8 U ;j~::.o ~~~m~ ~ ~~~ oor ZO" OM Attachment number 3 Page 1 of 3 EXHIBIT D MEMORANDUM OF DEVELOPMENT AGREEMENT [Court Street Residence Inn] This Memorandum of Agreement for Development of Property ("Memorandum") is made this _ day of , 2007, by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA, a public body corporate and politic of the State of Florida (the "Agency"), whose address is 112 S. Osceola Avenue, Clearwater, FL 33756, CLEARWATER HOSPITALITY PROPERTIES, LLC, a Delaware limited liability company (the "Developer"), whose address is c/o The Clarkson Company, 3100 University Blvd. South, Suite 200, Jacksonville, FL 32216. This Memorandum pertains to an Agreement for Development of Property (Court Street Residence Inn), by and between the Agency and the Developer, dated as of , 2007, (the "Development Agreement"), which provides for the development and construction of the Residence Inn By Marriott Project, as same is defined in the Development Agreement. The Development Agreement is incorporated herein and made a part hereof by reference as fully as though it were set forth herein in its entirety. It is the intention of the parties to hereby ratify, approve and confirm the Development Agreement as a matter of public notice and record. Nothing herein shall in any way affect or modify the Development Agreement, nor shall the provisions of this Memorandum be used to interpret the Development Agreement. In the event of conflict between the terms of this document and those contained in the Development Agreement, the terms in the Development Agreement shall control. A copy of the fully-executed Development Agreement is on file with the City Clerk, City of Clearwater, Florida, located at City Hall, 112 S. Osceola Avenue, Clearwater, Florida, which is available for review and copying by the public. IN WITNESS WHEREOF, the parties hereto have set their hands and their respective seals affixed as of the day of ,2007. [SIGNATURE PAGE FOLLOWS] D-I Item # 3 (SEAL) ATTEST: By: , as Its: Executive Director (SEAL) ATTEST: By: Its: Secretary , as Attachment number 3 Page 2 of 3 COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA By: Its Chairman , as CLEARWATER PROPERTIES, LLC HOSPITALITY By: Its , as D-2 Item # 3 Attachment number 3 Page 3 of 3 STATE OF FLORIDA COUNTY OF PINELLAS The foregoing instrument was acknowledged before me this _ day of , 2004, by , Chairman of the Community Redevelopment Agency of the City of Clearwater, a body corporate and politic of the State of Florida, on behalf of the Agency. He is personally known to me or has produced a valid driver's license as identification. (SEAL) Printed/Typed Name: Notary Public-State of Florida Commission Number: STATE OF FLORIDA COUNTY OF PINELLAS The foregoing instrument was acknowledged before me this _ day of 2007, by of CLEARWATER HOSPITALITY PROPERTIES, LLC., a Delaware limited liability company, on behalf of the corporation. He is personally known to me or has produced a valid driver's license as identification. (SEAL) Printed/Typed Name: Notary Public-State of Florida Commission Number: D-3 Item # 3 Attachment number 4 Page 1 of 3 EXHIBIT "E" AGREEMENT EXPIRATION CERTIFICATE [Court Street Residence Inn] This Agreement Expiration Certificate ("Certificate") is made this _ day of _, by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARW ATER, FLORIDA, a public body corporate and politic of the State of Florida (the "Agency"), whose address is 112 S. Osceola Avenue, Clearwater, FL 32521, and CLEARW ATER HOSPITALITY PROPERTIES, LLC, a Delaware limited liability company (the "Developer"), whose address is c/o The Clarkson Company, 3100 University Blvd. South, Suite 200, Jacksonville, FL 32216. This Certificate pertains to an Agreement for Development of Property by and between the Agency and the Developer, dated as of , 2007, (the "Development Agreement"), which provides for the development and construction of the Residence Inn by Marriott Project, as same is defined in the Development Agreement. The Development Agreement has expired in accordance with its own terms as of _, , and is no longer of any force or effect, and that the Project site is no longer subj ect to any restriction, limitation, or encumbrance imposed by the Development Agreement. This Certificate has been executed by the parties to the Development Agreement as provided in Section thereof and constitutes a conclusive determination of satisfactory completion of all obligations under such Agreement and that the Development Agreement has expired, except for those matters which survive as noted above. A copy of the fully-executed Development Agreement is on file with the City Clerk, City of Clearwater, Florida, located at City Hall, 112 S. Osceola Avenue, Clearwater, Florida, which is available for review and copying by the public. IN WITNESS WHEREOF, the parties hereto have set their hands and their respective seals affixed as of the _ day of E-l Item # 3 (SEAL) ATTEST: By: , as Its: Executive Director (SEAL) ATTEST: By: Its: Secretary , as Attachment number 4 Page 2 of 3 COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA By: Its Chairman , as CLEARWATER PROPERTIES, LLC HOSPITALITY By: Its , as E-2 Item # 3 Attachment number 4 Page 3 of 3 STATE OF FLORIDA COUNTY OF PINELLAS The foregoing instrument was acknowledged before me this _ day of by , Chairman of the Community Redevelopment Agency of the City of Clearwater, a public body corporate and politic of the State of Florida, on behalf of the Agency. He is personally known to me or has produced a valid driver's license as identification. (SEAL) Printed/Typed Name: Notary Public-State of Florida Commission Number: STATE OF FLORIDA COUNTY OF PINELLAS The foregoing instrument was acknowledged before me this _ day of , _, by of Clearwater Hospitality Properties, LLC., a Delaware corporation, on behalf of the corporation. He is personally known to me or has produced a valid driver's license as identification. (SEAL) Printed/Typed Name: Notary Public-State of Florida Commission Number: E-3 Item # 3 Attachment number 5 Page 1 of 3 EXHIBIT "F" AGREEMENT TERMINATION CERTIFICATE [Court Street Residence Inn] This Agreement Termination Certificate ("Certificate") is made this _ day of , _, by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA, a public body corporate and politic of the State of Florida (the "Agency"), whose address is 112 S. Osceola Avenue, Clearwater, FL 32521, and CLEARW ATER HOSPITALITY PROPERTIES, LLC, a Delaware limited liability company (the "Developer"), whose address is c/o The Clarkson Company, 3100 University Blvd. South, Suite 200, Jacksonville, FL 32216. This Certificate pertains to an Agreement for Development of Property by and between the Agency and the Developer, dated as of , 2007 (the "Development Agreement"), which provides for the development and construction of the Residence Inn by Marriott Project, as same is defined in the Development Agreement. The Development Agreement has terminated in accordance with its own terms as provided in Section thereof as of _, , and is no longer of any force or effect except for those provisions which expressly survive termination. This Certificate has been executed by the parties to the Development Agreement as provided in Section thereof and constitutes a conclusive determination that the Development Agreement has been terminated, the rights, duties and obligations of the parties hereto have been terminated and released (subject to those surviving provisions) and the Project is no longer subject to any restrictions, limitations or encumbrances imposed by the Development Agreement. A copy of the fully-executed Development Agreement is on file with the City Clerk, City of Clearwater, Florida, located at City Hall, 112 S. Osceola Avenue, Clearwater, Florida, which is available for review and copying by the public. IN WITNESS WHEREOF, the parties hereto have set their hands and their respective seals affixed as of the _ day of COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA F-l Item # 3 (SEAL) ATTEST: By: , as Its: Executive Director (SEAL) ATTEST: By: Its: Secretary , as By: Its Chairman Attachment number 5 Page 2 of 3 , as CLEARWATER HOSPITALITY PROPERTIES, LLC By: Its , as F-2 Item # 3 Attachment number 5 Page 3 of 3 STATE OF FLORIDA COUNTY OF PINELLAS The foregoing instrument was acknowledged before me this _ day of by , Chairman of the Community Redevelopment Agency of the City of Clearwater, a public body corporate and politic of the State of Florida, on behalf of the Agency. He is personally known to me or has produced a valid driver's license as identification. (SEAL) Printed/Typed Name: Notary Public-State of Florida Commission Number: STATE OF FLORIDA COUNTY OF PINELLAS The foregoing , _, by corporation, on behalf of the corporation. driver's license as identification. instrument was acknowledged before me this _ day of of Clearwater Hospitality Properties, a Delaware He is personally known to me or has produced a valid (SEAL) Printed/Typed Name: Notary Public-State of Florida Commission Number: F-3 Item # 3 Meeting Date:5/15/2007 Community Redevelopment Agency Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Adopt mid year budget amendments for the CRA for the period of October 1, 2006 though March 31,2007. SUMMARY: The attached amendments reflect anticipated operating amendments to the CRA at mid year reflecting corrected receipts from tax increment financing with the adoption of final millage rates for the City of Clearwater and Pinellas County. In addition, budget amendments to CRA capital projects will shift all CRA funding out of the City's Special Program and Capital Improvement Funds and establish the appropriate projects in the newly established CRA Program Fund. Review Approval: 1) Office of Management and Budget 2) Legal 3) Clerk 4) City Manager 5) Clerk 6) City Manager 7) Clerk 8) City Manager 9) Clerk Cover Memo Item # 4 Community Redevelopment Agency Mid Year Review For the Six Month Period of October 1, 2006 - March 31, 2007 Attachment number 1 Page 1 of 9 2006/07 Mid Year 2006/07 Adopted Proposed Amended Amend Budget Amendments Budget Ref 1,221,668 (106,284) 1,115,384 1 1,114,721 (52,598) 1,062,123 2 167,543 (3,179) 164,364 3 2,503,932 (162,061) 2,341,871 15,000 15,000 1,686,914 1,686,914 4 819,747 819,747 5 53,143 53,143 7,848 7,848 2,579,923 2,344,600 4,924,523 Revenues & Transfers In Tax Increment Financing Revenues 338930 Pinellas County 381115 City of Clearwater 381116 Downtown Development Board Total TIF Revenues Other Revenues 361101 Interest Earnings Transfers In 381715 381781 381782 381782 Capital Improvement Fund Special Program Fund DDB Administration Loan Payment From DDB Total Revenues & Transfers In Expenditures & Transfers Out Operating Expenditures 530100 540200 540700 543100 543600 547200 548000 550100 550400 557100 557300 571200 571220 581000 582000 Transfers Out 590200 590200 590800 590800 590800 598800 Professional Services Document Reproduction Postal Service Advertising Taxes Employee Expense-Travel Other Services Office Supplies Operating Supplies Memberships and Subscriptions Training and Reference Principal Payment for Loan Interest Payment for Loan Payments to Other Agencies-DDB Aid to Private Organizations Total Operating Expenditures 75,000 4,200 2,000 1,000 5,000 5,500 2,200 1,000 500 3,000 3,000 120,402 4,000 167,543 56,000 447,345 (3,179) (179) 75,000 6,200 1,000 5,000 5,500 2,200 1,000 500 3,000 3,000 120,402 4,000 164,364 56,000 447,166 3 253,141 55,000 1,221,668 50,000 552,769 (106,284) (52,598) 2,503,661 2,344,779 2,344,600 253,141 55,000 1,115,384 50,000 500,171 2,503,661 4,477,357 4,924,523 2 4,5 General Fund- Administrative Clearwater Auto Site Restricted County TIF Funds Fagade Improvement Grant Fund Redevelopment Projects Fund CRA - Capital Improvement Fund Total Transfers Out Total Expenditures & Transfers Out Excess of Revenues & Transfers In Over Expenditures & Transfers Out 2,132,578 2,579,923 Budget Amendments to Operating Budget The proposed amendments reflect the actual receipt of tax increment revenues from Pinellas County and the offsetting transfer of these funds to the Downtown Streetscape project. The proposed amendments reflect the actual receipt of tax increment revenues from the City of Clearwater, and the related reduction in the estimated transfer to the Redevelopment project based upon the above amendments, as 2 necessary to balance the CRA fund. The proposed amendments reflect the actual receipt of tax increment revenues from the Downtown Development Board 3 and the offsetting payment to the DDB. The budget amendment reflects the return of CRA funds from the Capital Improvement Fund and the redistribution of 4 these funds to the same project in the new CRA capital fund. The budget amendment reflects the return of CRA funds from the Special Program Fund and the redistribution of these 5 funds to the same project in the new CRA capital fund. Item # 4 Attachment number 1 Page 2 of 9 Community Redevelopment Agency Special Program and Capital Improvement Projects Mid Year Review For the Six Month Period of October 1, 2006 - March 31, 2007 Mid Year Actual Expenditures Project Budget Proposed Amended Project Open Available Amend # Description 3/31/2007 Amendmnts Budget To Date Encumbr Balance Ref 181-99846 . Economic Development - OTI 145,330 (72,970) 72,360 9,275 63,085 1 181-99963 Economic Development Incentive 126,930 (74,323) 52,608 52,608 0 2 181-99968 Cleveland Street Maintenance 58,810 (20,000) 38,810 38,810 0 3 181-99978 Mainstreet Program 12,954 (12,954) 0 0 0 4 181-99979 Historical Fayade 161,386 (75,312) 86,074 86,074 0 5 181-99986 Mediterranean Village 532,224 (259,538) 272,687 272,687 0 6 181-99988 Increment Revenue - IMR 302,401 (302,401) 0 0 7 Total 1,340,036 (817,498) 522,538 459,453 63,085 Mid Year Actual Expenditures Project Budget Proposed Amended Project Open Available Amend # Description 3/31/2007 Amendmnts Budget To Date Encumbr Balance Ref 315-94714 Downtown Redevelopment 3,350,809 (2,027,744) 1,323,064 1,323,064 0 8 315-94765 IMR Development 1,441,788 (99,271) 1,342,517 1,342,517 0 9 Total 4,792,597 (2,127,015) 2,665,582 2,665,582 Mid Year Actual Expenditures Project Budget Proposed Amended Project Open Available Amend # Description 3/31/2007 Amendmnts Budget To Date Encumbr Balance Ref 388-94714 Downtown Redevelopment 1,274,053 402,242 1,676,296 19,600 1,656,696 10 388-94765 IMR Development 99,271 99,271 9,012 90,259 11 388-94847 Clearwater Centre - 1100 Cleveland 1,040,000 1,040,000 1,040,000 12 388-94848 Station Square Park 400,000 400,000 400,000 388-94849 East Gateway 100,384 100,384 100,384 388-99881 Clearwater Auto Site - General 55,000 55,000 40 54,960 388-99963 Economic Development Incentive 147,293 147,293 147,293 13 388-99968 Cleveland Street Maintenance 20,000 20,000 20,000 14 388-99979 Historical Facade Program 50,000 77,034 127,034 127,034 15 388-99986 Mediterranean Village 259,538 259,538 54,519 205,019 16 388-99988 Increment Revenue - IMR 302,401 302,401 302,401 17 Total 1,879,437 2,347,779 4,227,216 40 83,131 4,144,045 Budget Amendments to Projects These projects are only partially funded with CRA funds. This analysis reflects all project funding. Item # 4 Attachment number 1 Page 3 of 9 SPECIAL PROGRAM FUND - Fund 181 Mid Year Amendments FY 2006/07 Increase/ Amdmt Project (decrease) Transfer Net Budget # Number Amount Amount Description Amendment Economic Development - QTI The budget amendment reflects the transfer of $72,969.84 of CRA funds to project 181- 99963, Economic Development Incentive Program, to provide the appropriate funding for the QTI project. The QTI project was funded 1 81-99846 (72,970) with CRA funds in error. (72,970) Economic Development Incentive The budget amendment reflects the transfer of $72,969.84 of CRA funds from project 181- 99963, Economic Development Incentive Program, to provide the appropriate funding for the QTI project. The QTI project was funded 72,970 with CRA funds in error. The budget amendment reflects the return of $147,292.73 ofCRA funds to the CRA operating fund for redistribution to the same project in the new CRA capital fund. No CRA 2 1 81-99963 (147,293) funds remain in this project. (74,323) Cleveland Street Maintenance The budget amendment reflects the return of $20,000 of CRA funds to the CRA operating fund for redistribution to the same project in the new CRA capital fund. No CRA funds remain in 3 1 81-99968 (20,000) this project. (20,000) Mainstreet Program - CLOSE PROJECT BudQet Amendment Only - The budget amendment reflects the interest earnings posted to the project in the amount of $527.16 4 181-99978 527 for fiscal year 2005/06. The budget amendment reflects the return of $13,481.08 of CRA funds to the CRA operating fund. This project is now closed and funds are available for redistribution and will be transferred to project 388-94714, Downtown (13,481) Redevelopment. (12,954) Item # 4 Attachment number 1 Page 4 of 9 SPECIAL PROGRAM FUND - Fund 181 Mid Year Amendments FY 2006/07 Increase/ Amdmt Project (decrease) Transfer Net Budget # Number Amount Amount Description Amendment Historical Fa~ade BudQet Amendment Only - The budget amendment reflects the interest earnings posted to the project in the amount of $1 ,721 .33 5 181-99979 1,721 for fiscal year 2005/06. The budget amendment reflects the return of $77,033.64 of CRA funds to the CRA operating fund for redistribution to the new CRA capital fund. No CRA funds remain in this project. (77 ,034) (75,312) Mediterranean Village The budget amendment reflects the return of $259,537.58 of CRA funds to the CRA operating fund for redistribution to the same project in the new CRA capital fund. No CRA 6 1 81-99986 (259,538) funds remain in this project. (259,538) Increment Revenue - IMR The budget amendment reflects the return of $302,401.47 of CRA funds to the CRA operating fund for redistribution to the same project in the new CRA capital fund. No CRA 7 1 81-99988 (302,401 ) funds remain in this project. (302,401) TOTAL (817,498) Item # 4 Attachment number 1 Page 5 of 9 CAPITAL IMPROVEMENT FUND - Fund 315 Mid Year Amendments FY 2006/07 Increase/ Amdmt Project (decrease) Transfer # Number Amount Amount Description Downtown Redevelopment BudQet Amendment Only - The budget amendment reflects the return of $440,100.39 to the Community Redevelopment Fund at fiscal year-end 2005/06, which was required to establish CRA reserved fund balance for land held for resale, in accordance with generally accepted accounting principles as applied to governmental units. This transfer reflects a return of monies previously transferred from the CRA Fund to the Capital Improvement Fund Redevelopment project. The future sale of land will eliminate the reserve requirement and allow the return of the monies to the Redevelopment Project, in the 8 315-94714 (440,100) new CRA 388 Fund. The budget amendment reflects the return of $1 ,587,643.75 of CRA funds to the CRA operating fund for redistribution to the same project in the new CRA capital fund. No CRA (1,587,644) funds remain in this project. IMR Development The budget amendment reflects the return of $99,270.70 of CRA funds to the CRA operating fund for redistribution to the same project in the new CRA capital fund. No CRA 9 315-94765 (99,271) funds remain in this project. TOTAL Item # 4 Attachment number 1 Page 6 of 9 Net Budget Amendment (2,027,744) (99,271 ) (2,127,015) Item # 4 Attachment number 1 Page 7 of 9 COMMUNITY REDEVELOPMENT AGENCY - Fund 388 Mid Year Amendments FY 2006/07 Increase/ Amdmt Project (decrease) Transfer Net Budget # Number Amount Amount Description Amendment Downtown Redevelopment To record a budget decrease of $52,598.27 to reflect the actual receipt of tax increment revenues from the City of Clearwater and a decrease of $106,284.16 to reflect the actual receipt of tax increment funding from Pinellas County, resulting in a net loss of $158,882.43 in antipated revenue due to the lowered millage rates upon final 10 388-94714 (158,882) adoption of these agency budgets. The budget amendment reflects the appropriation of $1 ,587,643.75 of CRA funds returned from the capital improvement project for Downtown Redevelopment, and $10,481.08 from closed project 181- 99978, Mainstreet Program, and the redistribution of these funds to the same project in the new 388-94714 1,598,125 CRA capital fund. The budget amendment reflects the transfer of CRA funds in the amount of $615,000 of County TIF and $425,000 of City TIF, for a total of $1 ,040,000 to establish a new CRA project (388-94847) "Clearwater Centre - 1100 Cleveland" and allocate funding in accordance with the development agreement between the CRA and Clarwater Centre, LLC. This was approved by the CRA on January 388-94714 (1,040,000) 16,2007. 399,242 IMR Development The budget amendment reflects the appropriation of $99,270.70 of CRA funds returned from the capital improvement project for the IMR Development and the redistribution of these funds to the same project in the 11 388-94765 99,271 new CRA capital fund. 99,271 Item # 4 Attachment number 1 Page 8 of 9 COMMUNITY REDEVELOPMENT AGENCY - Fund 388 Mid Year Amendments FY 2006/07 Increase/ Amdmt Project (decrease) Transfer Net Budget # Number Amount Amount Description Amendment Clearwater Centre - 1100 Cleveland The budget amendment reflects the transfer of CRA funds in the amount of $615,000 of County TIF and $425,000 of City TIF for a total of $1 ,040,000 from project 388-94714, Downtown Redevelopment, in order to establish funding in accordance with the development agreement between the CRA and Clarwater Centre, LLC. This was approved by the CRA on January 12 388-94847 1,040,000 16,2007. 1,040,000 Economic Development Incentive The budget amendment reflects the appropriation of $147,292.73 of CRA funds returned from the capital improvement project for Economic Development Incentive and the redistribution of these funds to the same project in the new CRA capital fund. 13 388-99963 147,293 147,293 Cleveland Street Maintenance The budget amendment reflects the appropriation of $20,000 of CRA funds returned from the capital improvement project for Cleveland Street Maintenance and the redistribution of these funds to the same project in the new CRA capital 14 388-99968 20,000 fund. 20,000 Historical Fa~ade Program The budget amendment reflects the appropriation of $77 ,033.66 of CRA funds returned from the capital improvement project for the Historical Fac;ade Program and the redistribution of these funds to the same project in the 15 388-99979 77,034 new CRA capital fund. 77,034 Item # 4 Attachment number 1 Page 9 of 9 COMMUNITY REDEVELOPMENT AGENCY - Fund 388 Mid Year Amendments FY 2006/07 Increase/ Amdmt Project (decrease) Transfer Net Budget # Number Amount Amount Description Amendment Mediterranean Village The budget amendment reflects the appropriation of $259,537.58 of CRA funds returned from the capital improvement project for Mediterranean Village and the redistribution of these funds to the same project in the new 16 388-99986 259,538 CRA capital fund. 259,538 Increment Revenue - IMR The budget amendment reflects the appropriation of $302,401.41 of CRA funds returned from the capital improvement project for Increment Revenue - IMR and the redistribution of these funds to the same project in the 17 388-99988 302,401 new CRA capital fund. 302,401 TOTAL 2,344,779 Item # 4