06/06/1991 CITY COMMISSION SPECIAL MEETING
Maas Brothers Property Acquisition
June 6, 1991
The City Commission of the City of Clearwater met in Special Session in the Commission Chambers at City Hall. The meeting was called to order at 4:00 P.M. with the following members
present:
Rita Garvey Mayor/Commissioner
Sue Berfield Vice-Mayor/Commissioner
Lee Regulski Commissioner
William Nunamaker Commissioner
Richard Fitzgerald Commissioner
Also present were:
Michael J. Wright City Manager
M. A. Galbraith, Jr. City Attorney
Cynthia E. Goudeau City Clerk
The purpose of this special meeting was to take action for the acquisition of the Maas Brothers property.
Item #1 - Interfund loan to CRA for Maas Brothers Property Bid.
Staff is proposing an interfund loan for the purpose of allowing the CRA to bid on the Maas Brothers property. This loan will be made from the Penny for Pinellas Infrastructure Tax
Funds included in the special development fund. The Myrtle Avenue extension project will be deleted and other projects will be rescheduled as necessary to provide the necessary cash
flow.
If the property is acquired, the City and the CRA intend to solicit public input regarding the ultimate use of the property, including a referendum as to whether or not City general
obligation debt should be issued to retain the property for use as a park or for other municipal purposes. If such general obligation debt is approved, the interfund loan will be included
in and repaid from the proceeds of such debt. If general obligation debt is not approved and the CRA decides to retain the property, other tax exempt or taxable debt will be pursued
including the repayment of this interfund loan. If for any reason such external debt is not completed the loan shall remain outstanding until forgiven by the City, repaid by the CRA
or until the purchased property is sold or otherwise disposed of by the CRA. Any remaining balance on the loan will be payable at the time of and from the proceeds of such sale or disposition.
The City Manger reported two appraisals had been received for the Maas Brothers property; one of $3 million and the other of $3.5 million. Both appraisals indicated the site is not
viable for retail use with one indicating an institutional or suite hotel use being feasible. There is no value to the structure and there is liability due to asbestos being in the
building. The asbestos is not harmful to people shopping there but would become a problem if the asbestos was disturbed for renovation. The asbestos removal would cost at least $300,000
and removal of the building would be an additional $350,000.
In response to a question, the City Manager indicated if the City is successful in acquiring the property the proposal is to seek public input to
decide to what use the property should be put; either extend Coachman Park or redevelop. He stated the recommendation is structured in order to give flexibility to the City. The property
is heavily mortgaged at this time.
Discussion ensued regarding which entity should buy the property. Concern was that there was conflict between the City Commission and their role as the CRA. The CRA is for development
purposes and purchase by the CRA would invite resale of the property as well as zoning and variances to permit development. The City Manager again indicated that his proposal was based
on giving flexibility as to the disposition of the property as public sentiment is not known at this time. It was indicated that once the property has been purchased by the City, resale
and development restrictions will be imposed.
Further discussion ensued regarding which entity should be purchasing the property. Concerns were expressed that the main reason for purchasing the property would be to protect the
bayfront, in which case, the City should be the entity which purchases it.
Two citizens spoke in support of the City obtaining the property rather than the CRA, with one expressing concerns that should the CRA purchase it, the citizens would not have input
as to the final disposition of the property. One citizen spoke requesting that the upper portion of the property remain on the tax rolls in order to increase the tax base.
Discussion ensued regarding whether or not the City should purchase the property.
Questions were also raised regarding once the building is removed whether or not the hole which would be left could be filled. The City Attorney indicated the Commission could agree
on a reasonable interpretation of the Charter, which would still be subject to judicial review.
Commissioner Regulski moved that an offering bid of $1.9 million be made by the City of Clearwater from its General Fund. The motion was duly seconded and upon the vote being taken,
Commissioners Regulski, Berfield and Nunamaker voted "aye". Commissioner Fitzgerald and Mayor Garvey voted "nay". Motion carried.
It was indicated the proposed purchase agreement would be forwarded to Allied Stores, but they would also be proposing a purchase agreement which will come back to the City Commission
for approval.
The CRA meeting scheduled for immediately after this meeting was canceled due to there no longer being a need for CRA action regarding the Maas Brothers site.
The meeting adjourned at 4:55 P.M.