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06/12/2017 - SpecialMonday, June 12, 2017 1:00 PM City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 Council Chambers Community Redevelopment Agency Meeting Agenda Special CRA Meeting June 12, 2017Community Redevelopment Agency Meeting Agenda 1. Call To Order 2. Approval of Minutes 2.1 Approve the minutes of the May 30, 2017 Special CRA Meeting as submitted in written summation by the City Clerk. 3. Citizens to be Heard Regarding Items Not on the Agenda 4. New Business Items 4.1 Approve the Community Redevelopment Agency’s Anchor Tenant Incentive Program. 5. Adjourn Page 2 City of Clearwater Printed on 6/6/2017 Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#17-3617 Agenda Date: 6/12/2017 Status: Agenda ReadyVersion: 1 File Type: MinutesIn Control: Community Redevelopment Agency Agenda Number: 2.1 SUBJECT/RECOMMENDATION: Approve the minutes of the May 30, 2017 Special CRA Meeting as submitted in written summation by the City Clerk. SUMMARY: APPROPRIATION CODE AND AMOUNT: USE OF RESERVE FUNDS: Page 1 City of Clearwater Printed on 6/6/2017 Community Redevelopment Agency Meeting Minutes May 30, 2017 City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 Meeting Minutes Tuesday, May 30, 2017 9:00 AM Special CRA Meeting Council Chambers Community Redevelopment Agency Page 1 City of Clearwater Draft Community Redevelopment Agency Meeting Minutes May 30, 2017 Roll Call Present 4 - Chair George N. Cretekos, Trustee Doreen Caudell, Trustee Bob Cundiff, and Trustee Bill Jonson Absent1 - Trustee Hoyt Hamilton Also Present: William B. Horne II – City Manager, Jill Silverboard – Deputy City Manager, Micah Maxwell – Assistant City Manager, Pamela K. Akin - City Attorney, Rosemarie Call - City Clerk, Seth Taylor – CRA Executive Director and Nicole Sprague – Official Records and Legislative Services Coordinator To provide continuity for research, items are listed in agenda order although not necessarily discussed in that order. Unapproved 1. Call To Order – Chair Cretekos The meeting was called to order at 9:00 a.m. at City Hall. 2. Approval of Minutes 2.1 Approve the minutes of the May 1, 2017 CRA Meeting as submitted in written summation by the City Clerk. Trustee Jonson moved to approve the minutes of the May 1, 2017 CRA Meeting as submitted in written summation by the City Clerk. The motion was duly seconded and carried unanimously. 3. Citizens to be Heard Regarding Items Not on the Agenda – None. 4. New Business Items 4.1 Amend the operating budget for the Community Redevelopment Agency (CRA) for fiscal year 2016-2017, approve budget amendments to the CRA Capital Improvement Project Fund and adopt Resolution 17-02. The amended capital budget reflects shifting downtown redevelopment priorities for the Community Redevelopment Area, including business attraction, economic development incentives, placemaking, branding and marketing, among other priorities. Page 2 City of Clearwater Draft Community Redevelopment Agency Meeting Minutes May 30, 2017 In response to questions, CRA Executive Director Seth Taylor said the Downtown Beautification line item is for supplemental landscaping. Wayfinding signs are funded through the Downtown Redevelopment line item. Staff is working with MERJE design firm to design, fabricate and install a comprehensive wayfinding signage system. Mr. Taylor said the gateway monument signs will be part of the project. Trustee Caudell moved to amend the operating budget for the Community Redevelopment Agency (CRA) for fiscal year 2016-2017, approve budget amendments to the CRA Capital Improvement Project Fund. The motion was duly seconded and carried unanimously. Resolution 17-02 was presented and read by title only. Councilmember Cundiff moved to adopt Resolution 17-02. The motion was duly seconded and upon roll call, the vote was: Ayes: 4 - Chair Cretekos, Trustee Caudell, Trustee Cundiff and Trustee Jonson 4.2 Approve an agreement for loan and exhibition of artwork and management of a gallery space with Professional Association of Visual Artists (PAVA) for a term of six months, with an option to renew for an additional six months, and authorize the appropriate officials to execute same. The City Community Redevelopment Agency (CRA) wishes to contract with PAVA to program and manage the property located at 331 Cleveland Street for the purposes of a studio, gallery, public assembly space, and consignment shop. PAVA and its members will staff the gallery at times and dates coordinated with activities in Downtown Clearwater. These activities include, but are not limited to: Blast Friday, Pierce Street Market, events at the Capitol Theatre, and other significant downtown events. APPROPRIATION CODE AND AMOUNT: Placemaking: 388-94889; not to exceed $15,000. In response to questions, Cultural Affairs Specialist Christopher Hubbard said city staff and PAVA staff will be cross trained in their respective areas. The space will include text panels and videos informing visitors of the Imagine Clearwater and 2nd Century initiatives. City staff will include CRA employees. CRA staff will coordinate hours of operation (i.e., open to the public, closed to the public (restrictive to PAVA). Mr. Hubbard said Page 3 City of Clearwater Draft Community Redevelopment Agency Meeting Minutes May 30, 2017 operation hours will also coincide during Downtown special events and shows at the Capitol Theatre. Normal hours of operation will be 11:00 a.m. to 5:30 p.m., Wednesdays through Fridays. The PAVA art pieces handle the consignment of all art pieces; all transactions will be electronic. Mr. Hubbard said the space will not include a kitchen; the intent is to work with Downtown restaurants to cater community activities, mixers and artist presentations hosted in the space. Trustee Cundiff moved to approve an agreement for loan and exhibition of artwork and management of a gallery space with Professional Association of Visual Artists (PAVA) for a term of six months, with an option to renew for an additional six months, and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4.3 Approve a lease agreement between the Community Redevelopment Agency (CRA) and Water’s Edge Commercial Group, LLC, a Florida Limited Liability Company, for the premises located at 331 Cleveland Street No. 2502, and authorize the appropriate officials to execute same. The CRA will lease approximately 2,000 square feet of first-floor retail space located in the ground floor of Water’s Edge Condominiums to serve as an Artist Workshop/Exhibit Space. The lease agreement between the CRA and Water’s Edge Commercial Group, LLC will commence on June 1, 2017, for a term of six months, in the amount of $1,425.24 per month. The CRA will be sharing the retail space with the Pinellas Association of Visual Artists (PAVA) for a collaborative, coordinated initiative to foster public art and engagement in Downtown. The CRA will utilize half of the leased space to house a 2nd Century Clearwater exhibit. The exhibit will feature the Imagine Clearwater - Bluff Master Plan and showcase additional 2nd Century Clearwater (formerly referred to as ULI) priority projects. APPROPRIATION CODE AND AMOUNT: Funding for this agreement to be provided by CRA funding code 388-94885 ULI Implementation. As of May 11, 2017, the balance in this fund is $570,120. In response to questions, CRA Executive Director Seth Taylor said Exhibit A is a blueprint that shows space dimensions. The space will be a white box, which is ideal for exhibit space, that will be built to code but not include a kitchen. Mr. Taylor said the secondary goal of the arrangement is to help market the spaces to interested parties. The City Attorney said the lease is for six months, with two renewals. Sixty-day notice would be required if the CRA chooses not to renew the lease. Page 4 City of Clearwater Draft Community Redevelopment Agency Meeting Minutes May 30, 2017 Staff anticipates the CRA would be asked to leave because Water's Edge would have a new tenant. Mr. Taylor said PAVA is contributing to the monthly utilities; the CRA is paying for the lease. Trustee Jonson moved to approve a lease agreement between the Community Redevelopment Agency (CRA) and Water’s Edge Commercial Group, LLC, a Florida Limited Liability Company, for the premises located at 331 Cleveland Street No. 2502, and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. Seth Taylor said staff has scheduled a special meeting on June 12 to announce the CRA's Anchor Tenant Incentive Program. 5. Adjourn The meeting adjourned at 9:23 a.m. Chair Community Redevelopment Agency Attest City Clerk Page 5 City of Clearwater Draft Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#17-3594 Agenda Date: 6/12/2017 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.1 SUBJECT/RECOMMENDATION: Approve the Community Redevelopment Agency’s Anchor Tenant Incentive Program. SUMMARY: The CRA’s Anchor Tenant Incentive Program will provide loan to grant funding to commercial property owners and/or commercial tenants to assist with interior building improvements and business start-up costs. The goal of the program is primarily to incentivize anchor restaurants and breweries (food and drink establishments) to open downtown, which in turn will help stimulate the local economy and improve quality of life for Clearwater residents and visitors. Loan to grant funding may be offered to a business outside the food and drink category if it is determined to have unique catalytic potential. Eligible program participants may receive loan to grant funding for 35% of the total interior building improvement and start-up costs, up to a maximum of $250,000. A participant may receive funding above the 35% and $250,000 level if it is determined to be a unique catalytic project. The CRA’s Anchor Tenant Incentive Program directly promotes goals and objectives of the Clearwater Downtown Redevelopment Plan. APPROPRIATION CODE AND AMOUNT: 94893 - CRA Opportunity Fund; $1,601,674.00 Page 1 City of Clearwater Printed on 6/6/2017 A. Program Overview The Community Redevelopment Agency’s Anchor Tenant Incentive Program provides loan-to-grant funding to commercial property owners and/or commercial tenants to assist with interior building improvements and business start-up costs. The goal of the program is primarily to incentivize anchor restaurants and breweries (food and drink establishments) to open downtown, which in turn will help stimulate the local economy and improve quality of life for Clearwater residents and visitors. The Anchor Tenant Incentive Program directly promotes goals and objectives of the Clearwater Downtown Redevelopment Plan, specifically: People Goal (page. 48): Goal 1: Downtown Clearwater shall be a place that attracts people for living, employment and recreation. The City shall encourage redevelopment that will attract residents and visitors to Downtown as a recreation, entertainment and shopping destination. Objective 1E: A variety of businesses are encouraged to relocate and expand in Downtown to provide a stable employment center, as well as employment opportunities for Downtown residents. Objective 1F: Cleveland Street shall be maintained as Downtown ’s Main Street which is valued for both its historic character and scale of development and for its function as a major retail street. Objective 1H: A variety of incentives shall be available to encourage redevelopment within the Downtown. The Anchor Tenant Incentive Program’s main objectives are as follows:  Attract high quality restaurants and breweries to Downtown Clearwater.  Improve the condition and appearance of downtown commercial buildings.  Increase downtown commercial occupancy rates and property values.  Promote Downtown Clearwater’s ongoing revitalization as a waterfront dining and entertainment destination. Eligible participants may receive loan-to-grant funding for 35% of the total interior building improvement and business start-up cost, up to a maximum of $250,000. Loan-to-grant funding may exceed $250,000, go above the 35% rate, and be made available to businesses outside the food and drink category, if the CRA is presented with a unique ‘catalyst’ project. A catalyst project is generally defined as a business that is first -to-market and anticipated to have a catalytic impact that will promote the Downtown Redevelopment Plan’s vision for a thriving downtown where people can live, work and play. City of Clearwater Community Redevelopment Agency Anchor Tenant Incentive Program City of Clearwater CRA | Anchor Tenant Incentive Program 2 Funding for the Anchor Tenant Incentive Program will be budgeted annually by the CRA Board of Trustees; funding will be made available to participants on a case-by-case basis after review by an advisory committee and with approval from the CRA Board of Trustees. B. Program Eligibility and Activities Commercial property located in the Community Redevelopment Area is eligible for participation. Ad-valorem property tax exempt properties are not eligible. A property must be current in tax bills and without city liens. If a commercial tenant is applying for loan-to-grant funding, written permission from the property owner must be obtained as part of the application process. Moreover, the tenant must have a minimum 5 year lease term with the property owner. Eligible Activities: The CRA will provide funding for interior building improvements as well as business start-up costs. Eligible interior building improvements include:  ADA requirements  Florida Fire Protection Code Requirements  Mechanicals and HVAC systems  Plumbing and electrical  Structure stabilization (repair and replacement of foundations, footers, load bearing walls, roofing systems)  Room and space reconfiguration including wall relocations  Energy efficiency improvements Please note that all necessary permits and approvals must be obtained from the City of Clearwater before work is commenced. All work is to be performed by a licensed and insured contractor; all work must comply with the Downtown Design Guidelines of the City of Clearwater Code of Ordinances and be properly permitted by the City of Clearwater Development Services Department. Eligible business start-up costs include:  Rent subsidy (to be negotiated with tenant and/or landlord on a case-by-case basis.)  Furniture, fixtures, equipment C. Program Funding Loan-to-Grant Funding: Loan-to grant funding will be provided to program participants for 35% of the total project cost up to a maximum of $250,000. If a project is determined to be a unique ‘catalyst’ project, funding may exceed the $250,000 level. The term of the loan will be five years from the issuance of a Certificate of Occupancy. For each year the business is open and operating, 20% of the loan will be forgiven. If after five years the business is open and operating, the loan will be forgiven entirely and converted into a grant. In the City of Clearwater CRA | Anchor Tenant Incentive Program 3 event of default by the debtor, loans shall be secured through a UCC-1 financing statement, a personal guarantee or other instrument. Funding Disbursement: Loan-to-grant funds will be disbursed to a program participant on a reimbursement basis. The CRA and program participant will create a payment schedule to determine project milestones. Submission of receipts, invoices and documentation will be required for payment. D. Application and Evaluation Process A property owner or tenant that is interested in participating in the Anchor Tenant Incentive Program must submit a completed and signed application (see attached) to: City of Clearwater Community Redevelopment Agency City Hall, 112 South Osceola Avenue, Clearwater FL 33756 Applications will be reviewed by an evaluation committee comprised of representatives from city staff. The committee’s recommendation will be presented to the CRA Board of Trustees for approval. Applications will be evaluated using the following criteria:  Consistency with the goals of the Downtown Redevelopment Plan.  Potential for project to attract additional businesses and to stimulate the d owntown economy.  Overall strength of business plan.  Applicant track record and business experience.  Investment level and source of funds from the applicant. Interior Building Improvement Costs: If a program participant seeks loan-to-grant funding for interior building improvements, he/she must provide two written costs estimates from licensed and insured contractors itemizing the scope and cost of work. The loan -to-grant funding amount will be based off the lower of the two costs estimates. Business Start-Up Costs: If a program participant seeks loan-to-grant funding for business start-up costs, he/she must provide a written cost estimate of all furniture, fixtures, and equipment needed to launch the business. If the participant seeks a rent subsidy, he/she must provide a copy of the lease agreement. E. Compliance Requirements Program participants must sign an agreement with the CRA Board of Trustees that describes their rights and obligations upon issuance of the loan-to-grant award. To ensure successful project completion, the participant shall meet the following deadlines:  Within 60 days of execution of the Loan-to-Grant Agreement, file a “Notice of Commencement” pursuant to the requirements of the City’s Planning and Development Department. City of Clearwater CRA | Anchor Tenant Incentive Program 4  Within 6 to 18 months of execution of the Loan-to-Grant Agreement, request a “Review of Completed Work” from the City of Clearwater. F. Next Steps Please complete the Anchor Tenant Incentive Program application and forward to Seth Taylor, CRA Director, at seth.taylor@myclearwater.com. To discuss the program in more detail, please call 727-562-4072. ## City of Clearwater CRA | Anchor Tenant Incentive Program 5 I. Applicant and Property Information Date of Application: ____________________ Name of Applicant: ____________________ Name of Business: ____________________ Project/Building Address: ____________________ Telephone Number: ____________________ Cell Number: ____________________ Email Address: ____________________ Proposed Use of Improved Building Space: ____________________ Are there any liens or existing Code Violations on the property? _____YES _____NO If yes, briefly explain: ________________________________________________________ _____________________________________________________________________________ II. Property Owner Information (if different from Applicant) Name of Property Owner: ____________________ Telephone Number: ____________________ Email Address: ____________________ Business Address: ____________________ Community Redevelopment Agency Anchor Tenant Incentive Program Application City of Clearwater CRA | Anchor Tenant Incentive Program 6 III. Project Financing Information Total Project Cost: $____________________ Bid One / Contractor Name: ____________________ Bid Amount: $____________________ Bid Two / Contractor Name: ____________________ Bid Amount: $____________________ Amount of Loan-to-Grant Funds Requested: $____________________ How will the applicant portion of the project be financed? _________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ IV. Project Summary Interior Building Improvement Please check all that apply for the proposed interior building improvement: ADA Requirements __________ Florida Fire Protection Code Requirements __________ Mechanical and HVAC Systems __________ Plumbing and Electrical Improvements __________ Structure Stabilization __________ Room and Space Reconfiguration __________ Energy Efficiency Improvements __________ Other (Please describe.) __________ Business Start-Up Costs Please check all that apply for proposed business start-up costs: Rent Subsidy Request __________ Furniture, Fixtures, Equipment __________ City of Clearwater CRA | Anchor Tenant Incentive Program 7 V. Project Description Please provide a summary of the proposed project and how the loan -to-grant funds will be invested. Please describe the overall scope of work and estimated timeline for project completion. __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ VI. Additional Documentation Required  Proof of property ownership; or, copy of the lease.  Documentation indicating that all property tax payments are current.  Proof of property insurance.  Two bids from licensed contractors with itemized cost estimate of the project.  Complete and Signed Uniform Commercial Code Financing Statement Form (if applicable.) VII. Applicant Certification and Signature I certify that the information provided in this application is true and accurate to the best of my ability and no false or misleading statements have been made in order to secure approval of this application. Applicant Signature ____________________ Print Name ____________________ Date ____________________ City of Clearwater CRA | Anchor Tenant Incentive Program 8 VIII. Property Owner Authorization As the property owner, I hereby authorize the applicant as identified above to undertake the activities specified in this application. Property Address ____________________ Property Identification Number ____________________ Owner Signature ____________________ Print Name ____________________ Date ____________________ ##