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07/16/2018 Community Redevelopment Agency Meeting Minutes July 16, 2018 City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 m ap ® e Meeting Minutes Monday, July 16, 2018 1 :00 PM Council Chambers Community Redevelopment Agency Page 1 City of Clearwater Community Redevelopment Agency Meeting Minutes July 16, 2018 Rollcall Present 5 - Chair George N. Cretekos, Trustee Doreen Caudell (Arrived — 1:40 p.m.), Trustee Bob Cundiff, Trustee Hoyt Hamilton, and Trustee David Allbritton Also Present—William B. Horne 11 — City Manager, Jill Silverboard — Deputy City Manager, Micah Maxwell —Assistant City Manager, Pamela K. Akin — City Attorney, Rosemarie Call — City Clerk, Nicole Sprague — Official Records and Legislative Services Coordinator, and Amanda Thompson — CRA Executive Director. To provide continuity for research, items are listed in agenda order although not necessarily discussed in that order. 1. Call to Order— Chair Cretekos The meeting was called to order at 1:12 p.m. at City Hall. 2. Approval of Minutes 2.1 Approve the minutes of the June 4, 2018 CRA Meeting as submitted in written summation by the City Clerk. Trustee Cundiff moved to approve the minutes of the June 4, 2018 CRA Meeting as submitted in written summation by the City Clerk. The motion was duly seconded and carried unanimously. 3. Citizens to be Heard Regarding Items Not on the Agenda — None. 4. New Business Items 4.1 Approve the Release of Reservation for the purpose of discharging certain rights retained by the Community Redevelopment Agency in previously owned land lying in the Northwest quarter of Section 15, Township 29 South, Range 15 East, Pinellas County, Florida in favor of Prospect Park Development, LLC and authorize the appropriate officials to execute same. The City of Clearwater (City) transferred ownership of certain real property to Page 2 City of Clearwater Community Redevelopment Agency Meeting Minutes July 16, 2018 the Community Redevelopment Agency of the City of Clearwater (CRA) on August 7, 2014. This property was then conveyed by deed from the CRA to Prospect Park Development, LLC for the construction of The Nolen Apartments. Florida Statutes Section 270.11 provides for a reservation of certain underlying phosphate, mineral, metal and petroleum rights to the CRA when conveying real property. In the deed from the City to the CRA, the CRA did not release its interest in all mineral rights, in on or under the surface of the land. Prospect Park Development, LLC, is intending to re-finance their construction loan for the construction of The Nolen Apartments. Their lender has raised concern over the CRA's retention of these mineral rights in the deed and has requested the release of the reservation as a condition of financing. This Release of Reservation will release, relinquish and disclaim all of the CRA's right, title or interest in all minerals along with the right to enter upon the property for purposes related to this reservation of mineral rights. Trustee Hamilton moved to approve the Release of Reservation for the purpose of discharging certain rights retained by the Community Redevelopment Agency in previously owned land lying in the Northwest quarter of Section 15, Township 29 South, Range 15 East, Pinellas County, Florida in favor of Prospect Park Development, LLC and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4.2 Approve a fagade grant for 101 N. Garden Avenue in the amount of$63,540, accept the fagade preservation easement and authorize the appropriate officials to execute same. The Community Redevelopment Agency trustees approved amendments to the Fagade Improvement Grant program in April 2018. The amendments created a new scoring system and the potential for greater investment from the CRA to incentivize renovation of commercial properties in downtown. Fagade improvements further the goal of the Downtown Redevelopment Plan to create a high quality public realm. Eligible improvements are cosmetic and structural changes to the front wall of a building including brick restoration, lighting, entryways, windows, public art and signage that is attached to the fagade. Routine maintenance is not eligible for grant funding, nor improvements on facades that are not adjacent to the public right of way. All improvements must be compatible with the City's zoning and design regulations. Page 3 City of Clearwater Community Redevelopment Agency Meeting Minutes July 16, 2018 101 N. Garden Avenue is the location of the former City of Clearwater Police and Fire stations. It was purchased by Zaniboni Architectural Lighting in November 2016. The owner plans to fully restore the historic brick building and pay tribute to the original occupants by displaying public safety memorabilia from the mid-1900's. The owner has already expended $163,500 to remove stucco around the entire exterior of the building and replace a few windows. The owner has requested a fagade grant to offset the costs of the remaining work including new exterior doors, brick restoration, landscaping and exterior lighting. The total cost of the remaining exterior improvements is $158,850. The proposed project received 90 points (out of 100 total points) as part of the grant application review. This score is eligible for a 40% match of the total cost of the project or $63,540. In addition to matching the CRA's financial investment, the owner must grant a conservation easement to preserve and maintain the fagade for a minimum of five years. CRA staff recommends funding at the full 40% match and acceptance of the conservation easement. APPROPRIATION CODE AND AMOUNT: Funds are available in CRA project 3887552-99979. Fagade Improvement Program CRA Executive Director Amanda Thompson provided a PowerPoint presentation. In response to questions, Ms. Thompson said Zaniboni has just under 50 employees. If Zaniboni goes out of business within the five-years, the City may place a lien on the property. The City Attorney said the City has an easement over the facade for the five-year period, once corrected, the fagade cannot be changed for the period of five years. Trustee Cundiff moved to approve a facade grant for 101 N. Garden Avenue in the amount of $63,540, accept the facade preservation easement and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4.3 Approve Chapter 4 of the Clearwater Redevelopment Plan which serves as the Community Redevelopment Agency's work plan. As stated in the Downtown Redevelopment Plan's introduction, the Plan, "lays the groundwork to reclaim Downtown as Clearwater's historic urban core and Page 4 City of Clearwater Community Redevelopment Agency Meeting Minutes July 16, 2018 the heart of the city." The primary focus of Chapter 4: Plan Implementation is to provide a summary of the major activities and capital improvements that will be completed by the City and the Community Redevelopment Agency over the next five years. The Downtown Redevelopment Plan serves as a Special Area Plan in accordance with the Countywide rules of Pinellas County. It also serves as the Community Redevelopment Plan in accordance with Florida's Community Redevelopment Act. The Plan will be implemented in four major ways: • Plan goals, objectives and design standards are applied through the site plan review process • The Public Amenities incentive pool program • The Capital Improvements Program • Policy implementation through City led projects and programs There are four sections in this Chapter: • Role of the Community Redevelopment Agency • Funding Sources • Incentives • Capital Improvement Program and Policy Implementation Projects The Community Redevelopment Agency (CRA) section outlines the role of the CRA in downtown revitalization. The Funding Sources section contains all the identified and potential sources of revenue for implementation as well as tax increment projects for the CRA districts. The Incentives section provides information on available incentive programs for the downtown area. It also includes the relationship of this plan to the Community Development Code and Public Amenities Incentive Pool. The Capital Improvement Program and Policy Implementation Projects section lists planned improvements for the entire downtown plan area as well as each character district. Work sessions on this Chapter have been held with the CRA Trustees, the Downtown Development Board and the Community Development Board. In addition, the CRA has solicited comments from the Clearwater Chamber of Commerce, Clearwater Downtown Partnership, the Downtown Merchants Association and several individual downtown stakeholders. This item will come before the Community Development Board on July 17, 2018 and City Council on July 19, 2018 for approval. APPROPRIATION CODE AND AMOUNT: No funds are needed for this action. CRA Executive Director Amanda Thompson provided a PowerPoint presentation. Page 5 City of Clearwater Community Redevelopment Agency Meeting Minutes July 16, 2018 In response to questions, Ms. Thompson said the Clearwater Regional Chamber of Commerce provided positive feedback, One Downtown stakeholder was neutral on the document but expressed support for funding business incentives. She said the Community Development Board and Downtown Development Board approved the proposed document. The estimated$82 million public investment, from 2018 through 2023, includes every city department with projects in the CRA area. It was suggested that staff determine the public and private investment costs for the previous five years. In response to questions, Ms. Thompson said public utilities is a major concern for Downtown landowners, if significant redevelopment is to occur, the utilities must be in place. She said this is the first time public utility improvements is reflected in the Plan. The City Manager said part of the Cleveland Street streetscape project included utility upgrades, but once north of Cleveland Street, infrastructure degradation is an issue. Ms. Thompson suggested adding a question to the incentives framework that identifies public infrastructure as a barrier. She said a project could be added for a public utilities study that would identify the improvements needed in the buildings in Downtown. There was consensus to add a public utilities study. In response to questions, Ms. Thompson said the placement of benches along the trail that goes through the Downtown is listed as a future capital improvement. She has discussed the Plan with Forward Pinellas, as discussed, the trails were included as a description, as well as the Cultural Arts Trail along Alt. 19. Specific trail improvements have not been discussed with Forward Pinellas since the improvements have not been identified, $500,000 has been allocated to work with Forward Pinellas on improvements to the Pinellas Trail. Concerns were expressed with the Plan's transit component. It was suggested staff seek approval from other regional agencies before the CRA approves the Plan. Ms. Thompson said the Plan identifies who the partners will be, where the CRA and County TIF funds will be spent. The item before the Trustees must be voted on now in order to make the October County TIF extension Page 6 City of Clearwater Community Redevelopment Agency Meeting Minutes July 16, 2018 deadline. One individual spoke in support, he suggested increasing the funding identified for street landscaping and including undergrounding utilities. One individual raised concerns with the lack of details provided to fund the redesign of Ft. Harrison Ave. as a Complete Street, the Cultural Art Mural Program, and the fagade renovation of the Main Library. Trustee Cundiff moved to approve Chapter 4 of the Clearwater Redevelopment Plan which serves as the Community Redevelopment Agency's work plan. The motion was duly seconded and carried with the following vote: Ayes: 4 - Chair Cretekos, Trustee Cundiff, Trustee Hamilton and Trustee Allbritton Nays: 1 - Trustee Caudell 4.4 Discuss the Community Redevelopment Agency's Anchor Tenant Incentive Program. The CRA established the Anchor Tenant Incentive Program in June 2017 to attract "anchor tenant" restaurants and breweries to Downtown Clearwater. Using restaurants as an attractor, or destination, is a commonly accepted strategy to bring in an increased number of visitors and pedestrian activity to a downtown. To date, the Anchor Tenant program has received 32 pre-applications, invited 3 full proposals and received only 1 partially complete full application. Of those 32 applications, only 2 were micro-breweries and only 7 were full service restaurants open on nights and weekends. From an administrative perspective, the program lacks clarity and a defined timeline for review. It places all the risk and burden of compliance on the tenant. The program is not working as intended. After a review of pre-applications and in-depth conversations with applicants, commercial property owners and potential tenants common barriers to implementing the Anchor Tenant program emerged. Tenants cited high rental rates, expensive building and fire code improvements, a lack of foot traffic, little knowledge of available properties for sale or lease and the perceived risk of being "first to market" as challenges. Larger and more established restaurants cited lack of adjacent parking as a challenge. Tenants are interested in establishing restaurants and other types of businesses in Downtown Clearwater. They recognize that downtown has a Page 7 City of Clearwater Community Redevelopment Agency Meeting Minutes July 16, 2018 concentration of hi tech workers, a walkable main street, numerous special events and are excited about the implementation of Imagine Clearwater. In some cases, the rental rate in Clearwater is less than St. Petersburg and Tampa which makes this an attractive area for establishing a new business. It is recommended that the CRA repeal and replace the Anchor Tenant Incentive Program with a broader approach that brings together the CRA, property owners and tenants to establish food and/or drink businesses that are open on nights and weekends. The revised program, the Food and Drink Incentive program, focuses on establishing new businesses in the Downtown Core and Prospect Lake districts with a budget of$1 million. Currently, there are only 13 restaurants and 4 bars in these two districts that are open on nights and weekends vs. 21 restaurants that are open for lunch. This grant program incentivizes property owners to improve their buildings and reduce rent through a matching grant from the CRA. Property owners are eligible for up to $250,000 per space, which the CRA will provide on a reimbursement basis. Tenants must match the grant amount as well through business start up costs, rent payment or building improvements. The revised program includes a pre-qualification form to assist property owners and tenants in finding each other, a full application form with defined review timelines and more clarity on the required supporting information. Grant programs are more successful when education and staff assistance is included. As a companion to the grant revision, CRA staff would implement the following grant review timeline as well. Proposed Grant Process and Timeline July CRA Trustees establish the new grant program City staff forms an internal development review team of building, planning, fire, engineering and health to plan for an expedited review team for selected grantees Publicize the new grant program August CRA hosts five grant workshops for potential property owners and tenants to explain the new program Pre-Qualification Form is open for 45 days for property owners and tenants City offers property inspections to identify major code updates needed for property owners September Pre-Qualification period closes Full Application form is open for 45 days CRA publishes a list of property owners and tenants who have pre-qualified CRA hosts 3 "matchmaking" workshops Page 8 City of Clearwater Community Redevelopment Agency Meeting Minutes July 16, 2018 CRA Director has 1 on 1 meetings with each applicant October Full application closes and staff review begins CRA Trustees vote on grant applications at the October 29th regularly scheduled hearing APPROPRIATION CODE AND AMOUNT: Funds are available in CRA Project 388-94893 Opportunity Fund CRA Executive Director Amanda Thompson provided a PowerPoint presentation. In response to questions, Ms. Thompson said the proposed changes requires one application that includes the property owner. The incentive program assumes the property owner and tenant have not started or completed work when the grant is issued. She said the program includes deadlines because without them, there would be no sense of urgency and nothing would be done. The proposed incentive program would repeal the current program, the new program uses the funding remaining in the current program. The pre-qualification timeframe will be defined by specific dates. Discussion ensued with comments made that the proposed program provides flexibility and clarity. Support was expressed for the proposed maximum grant amount and grantee workshops. A concern was expressed with the grant application process. 4.5 Discuss ClearSky and Pour Yours grant funding requests. At the request of City Council, CRA staff has researched and reviewed requests for CRA grant funding by two downtown businesses, ClearSky and Pour Yours. The CRA has three grant programs - the Anchor Tenant Incentive Program established in June 2017, the Sidewalk Cafe Grant Program established in 2004, and the Facade Grant Program established in 2004 and amended in 2018. Each grant program requires the business or property owner to apply for the grant and receive approval prior to opening their completing the grant activities. ClearSky ClearSky pulled a building permit on August 23, 2016 and opened in June 2017 Page 9 City of Clearwater Community Redevelopment Agency Meeting Minutes July 16, 2018 in Downtown Clearwater. A full search of written and email records showed that CRA staff emailed the restaurant operator, Dan Shouvlin, an application for the Facade Grant Program. Mr. Shouvlin did not apply for any CRA grant programs. There are no written records that discussed providing CRA funding to ClearSky. Pour Yours Pour Yours submitted a Pre-Application for the Anchor Tenant Incentive Program on January 29, 2018. The CRA Director reviewed the pre-application and met with the business owner in February 2018 to discuss the concept. Pour Yours is a wine tasting lounge with a tapas menu provided by the adjacent restaurant. The CRA Director did not invite a full application from the business since it did not meet the program guidelines of a "destination restaurant" or "brewery." The owner of Pour Yours was informed at the meeting with the CRA Director that the concept did not qualify for an anchor tenant grant. Pour Yours opened for business in May 2018. Discussion ensued with comments made that Pour Yours is a unique and catalytic business in Downtown and should have received some funding assistance from the CRA. A concern was expressed with granting funds that do not meet the grant guidelines established by the CRA. It was suggested staff determine if there is any flexibility within the current grant guidelines. The City Attorney recommended the Trustees not look at the personalities but on the business, Pour Yours did not meet the program criteria. In response to questions, CRA Executive Director Amanda Thompson said the proposed incentive program guidelines could allow any eligible activities within a certain timeframe could apply, if the program is structured in that manner. Pour Yours'grant request would be eligible for the new incentive program because it would allow food and or drinks open nights and weekends. The City Attorney said making the policy retroactive for a period would be an incentive payment to the landlord. Ms. Thompson said the landlord could get credit for rent reduction. Under the new incentive program, the CRA reimburses the property owner and the tenant shows their match. In the case of Pour Yours, the tenant could expect future rent reduction. The City Attorney said the Trustees do not have to award the grant now, first, make the policy retroactive for a period of time. There was consensus for staff to amend the incentive program that Page 10 City of Clearwater Community Redevelopment Agency Meeting Minutes first, make the policy retroactive for a period of time. July 16, 2018 There was consensus for staff to amend the incentive program that includes a retroactive time period and requires receipts and that the grant application be considered in October. Discussion ensued with comments made that Clear Sky was under the impression that funds that staff verbally promised would be provided. Concerns were expressed that this may have a negative impact on the CRA if the funding request is not addressed. In response to a concern, City Attorney suggested reopening the old program to allow Clear Sky to file an application, which can be processed as an exception because of the promises made by former staff. The program would be reopened retroactively for one applicant only. There was consensus to reopen the program to allow Clear Sky submit an application. 5. Director's Report 6. Adjourn CRA Executive Director Amanda Thompson provided a PowerPoint presentation, a status update on housing, restaurant, public art projects. The meeting adjourned at 3:07 p.m. — e(Nkt(\ciAtOt Chair Community Redevelopment Agency Page 11 City of Clearwater