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08/13/2018Monday, August 13, 2018 1:00 PM City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 Council Chambers Community Redevelopment Agency Meeting Agenda August 13, 2018Community Redevelopment Agency Meeting Agenda 1. Call To Order 2. Approval of Minutes 2.1 Approve the minutes of the July 16, 2018 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 Repeal and Replace the Community Redevelopment Agency’s Anchor Tenant Incentive Program. 5. Adjourn Page 2 City of Clearwater Printed on 8/13/2018 Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#18-4782 Agenda Date: 8/13/2018 Status: Agenda ReadyVersion: 1 File Type: MinutesIn Control: Community Redevelopment Agency Agenda Number: 2.1 SUBJECT/RECOMMENDATION: Approve the minutes of the July 16, 2018 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 8/13/2018 Community Redevelopment Agency Meeting Minutes July 16, 2018 Page 1 City of Clearwater City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 Meeting Minutes Monday, July 16, 2018 1:00 PM Council Chambers Community Redevelopment Agency Draft Community Redevelopment Agency Meeting Minutes July 16, 2018 Page 2 City of Clearwater 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 Presen t – William B. Horne II – City Manager, Jil l Silverboard – Deputy City Mana ger, Micah Maxwell – Assistant City Manager, Pamela K. Akin – City Attorney, Rosem ar ie Call – City Clerk, Nicole Spra gue – Offic ial Re cords and Le gis lati ve Ser vices Coordin ator, and Amanda Thompson – CRA Executive Director. To pro vi de continui ty fo r research, items are li sted in agend a order altho ugh not necessarily disc ussed in that order. Unapproved 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 Draft Community Redevelopment Agency Meeting Minutes July 16, 2018 Page 3 City of Clearwater 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 façade grant for 101 N. Garden Avenue in the amount of $63,540, accept the façade preservation easement and authorize the appropriate officials to execute same. The Community Redevelopment Agency trustees approved amendments to the Façade 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. Façade 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 façade. 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. Draft Community Redevelopment Agency Meeting Minutes July 16, 2018 Page 4 City of Clearwater 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 façade 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 façade 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. Façade 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 façade cannot be changed for the period of five years. Trustee Cundiff moved to approve a façade grant for 101 N. Garden Avenue in the amount of $63,540, accept the façade 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 Draft Community Redevelopment Agency Meeting Minutes July 16, 2018 Page 5 City of Clearwater 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. Draft Community Redevelopment Agency Meeting Minutes July 16, 2018 Page 6 City of Clearwater 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 P inellas; 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 Draft Community Redevelopment Agency Meeting Minutes July 16, 2018 Page 7 City of Clearwater 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 façade 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 Draft Community Redevelopment Agency Meeting Minutes July 16, 2018 Page 8 City of Clearwater 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 Draft Community Redevelopment Agency Meeting Minutes July 16, 2018 Page 9 City of Clearwater 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 Draft Community Redevelopment Agency Meeting Minutes July 16, 2018 Page 10 City of Clearwater 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 Draft Community Redevelopment Agency Meeting Minutes July 16, 2018 Page 11 City of Clearwater 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 CRA Executive Director Amanda Thompson provided a PowerPoint presentation, a status update on housing, restaurant, public art projects. 6. Adjourn The meeting adjourned at 3:07 p.m. Chair Community Redevelopment Agency Attest City Clerk Draft Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#18-4915 Agenda Date: 8/13/2018 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.1 SUBJECT/RECOMMENDATION: Repeal and Replace the Community Redevelopment Agency’s Anchor Tenant Incentive Program. SUMMARY: 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 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 Page 1 City of Clearwater Printed on 8/13/2018 File Number: ID#18-4915 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 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 Page 2 City of Clearwater Printed on 8/13/2018 DRAFT 1 | P a g e A. Program Overview The Community Redevelopment Agency’s (CRA) Food and Drink Incentive Program provides grant funding to commercial property owners and tenants to assist with building improvements and rent subsidy. The goal of the program is to incentivize commercial property owners in downtown to renovate their buildings to attract food and/or drink businesses that are open on nights and weekends, which in turn will help stimulate the local economy and improve quality of life for Clearwater residents and v isitors. This grant requires a 100% match of the CRA’s grant funding from the property owner and the tenant. The CRA has allocated $1 million dollars for this program and the minimum grant is $10,000 and the maximum grant per tenant space is $250,000. This is a time limited grant opportunity that will begin September 3, 2018 and will end September 3, 2019 or when the funding has been exhausted. The Food and Drink Incentive Program directly promotes goals and objectives of the 2018 Clearwater Downtown Redevelopment Plan, specifically: People Goal (page 46) – Downtown shall be a place that attracts residents, visitors, businesses and their employees and enable the development of community. The City shall encourage a vibrant and active public realm, recreation and entertainment opportunities and support the community and neighborhoods. Objective 1E: Maintain Cleveland Street as Downtown’s Main Street which is valued for its historic character and pedestrian scale. Urban Design Goal (page 48) – Downtown will be a dynamic built environment of dense and livable patterns and active and attractive streets through the use of quality urban design and architecture. Objective 4D: Encourage renovation, restoration and reuse of existing historic structures to maintain the character of Downtown’s neighborhoods. The Food and Drink Incentive Program’s main objectives are as follows: • Attract food and/or drink establishments that are open on nights and weekends to the Downtown Core and Prospect Lake districts to promote Downtown’s ongoing revitalization as a dining destination. • Increase the number of commercial properties that can attract and accommodate food and drink tenants within the next 12 months. • Improve the condition and appearance of downtown commercial buildings. City of Clearwater Community Redevelopment Agency Food and Drink Incentive Program City of Clearwater CRA | Food and Drink Catalyst Program 2 • Increase downtown commercial occupancy rates and property values. B. Program Eligibility and Activities Property Owners Commercial property located in the Community Redevelopment Area’s Downtown Core and Prospect Lake districts are eligible for participation. Ad-valorem property tax exempt properties are not eligible (in cases where a portion of a property is tax-exempt, funding may be made only to the taxable portion/percentage of the property.) A property must be current in tax bills and without city liens. Property owners must commit to matching the CRA’s grant funding dollar for dollar in reduced rent and/or building improvements that will be maintained for a minimum of five years. They must secure a tenant that i s a food and/or drink business that is open on nights and weekends. Grant funds are not to be used for routine maintenance and should be part of a larger scope of improvements to the leasable space. Rent Reduction A property owner may provide free or reduced rent to the tenant over a period of five years to match the CRA’s grant. The lease rate must be approved by the CRA Director which will include a review by an independent commercial real estate broker. Reduced rent qualifies for a maximum of 50% of the required match amount. The general rule of thumb for improvements that qualify towards a property owner's match is that the improvement should remain with the property and should directly benefit tenants. Eligibl e interior and exterior 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 wa lls, roofing systems) • Room and space reconfiguration including wall relocations • Grease traps • Windows/Doors • Outdoor hardscape improvements, landscape improvements and lighting • Energy efficiency improvements • General building or facade repairs and roof repair and replacement are NOT eligible Tenants Food and/or drink business tenants, that are open on nights and weekends, are eligible for this grant program in partnership with a commercial property owner. The tenant must match the CRA’s grant funding dollar f or dollar in business start-up costs, interior and/or exterior building improvements. The tenant must have a minimum five-year lease term with the property owner. City of Clearwater CRA | Food and Drink Catalyst Program 3 Eligible business start-up costs include: • Rent payments • Furniture, fixtures, equipment, signage Example Grant Project: The property owner at 123 Downtown Lane has secured a tenant who wishes to establish a full service, Italian restaurant and wine tasting room. The restaurant is open Thursday-Saturday nights and offers brunch on the weekend. The wine tasting room is open from 4—7pm Tuesday – Friday and from 11am-3pm on the weekends. The proposed restaurant will be in one corner unit of a larger building. All eligible improvements are limited to that unit. The total cost of the project is $5 25,000. Financial Breakdown CRA: $175,000 grant to property owner paid on a reimbursement basis Property Owner: $25,000 in rent subsidy (up to $87,500 would be eligible) $150,000 in buildout costs including a grease trap, upgrades to the fire protecti on system and ADA bathroom Total Match: $175,000 Tenant: $50,000 in furniture $75,000 in kitchen equipment $25,000 for rent payments $25,000 for signage and lighting Total Match: $175,000 C. Grant Process: There are three phases to this grant program, Pre-Qualification for Owners and Tenants, Full Application Submission and Review and Project Implementation. The grant program timeline is available at www.downtownclearwater.com Pre-Qualification for Owners and Tenants The purpose of the Pre-Qualification review is to ensure that property owners and prospective tenants meet the minimum eligibility requirements to participate in the grant program. Each potential owner/tenant grant applicant must submit the Pre-Qualification form for review and approval by the CRA Director prior to submitting a full grant application. City of Clearwater CRA | Food and Drink Catalyst Program 4 Full Application Submission and Review After a successful Pre-Qualification, property owners and tenants may jointly submit a full grant application for review. 1. Applicants set up a meeting with CRA staff to review the full application requirements which includes a review of the tenant's business model, eligible improvement activities and a proposed scope of work and budget. 2. Property Owner and Tenant submit a full application. 3. Application is reviewed within 15 days of submission for completeness and accepted or returned with comments by CRA Director. 4. Once an application is determined complete by the CRA Director, the grant request will be heard at the next available CRA Board hearing. Each application will be reviewed by an internal staff committee including the CRA Director, Planning Director, Building Official, City Attorney, Assistant Cit y Manager and Economic Development Director according to the following criteria: • Consistency with the goals of the Downtown Redevelopment Plan. • Feasibility of the proposed scope of services and timeline. • Clear definition of a target audience and marketing plan. • Tenant track record and business experience. • Ability to provide an experience that does not exist in Downtown presently. 5. All Food and Drink Incentive grant requests require the approval of the CRA Trustees. The CRA Director shall prepare a recommendation for the trustees based on the internal staff committee ’s review. Project Implementation After the grant is approved by the CRA Trustees, the grantee may begin their project. 1. The CRA executes the grant agreement, which includes a payment schedule and project milestones. Submission of receipts, invoices and other appropriate documentation will be required for payment. 2. All necessary permits and approvals are 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. 3. Applicant completes a Grant Completion Form which includes AFTER pictures of the project, a copy of the Certificate of Occupancy and any final invoices for payment. D. Next Steps If you are interested in learning more about the Food and Drink Incentive Program , please visit downtownclearwater.com or contact Anne Fogarty France at anne.fogarty-france@myclearwater.com I.Applicant and Property Information Date of Application:____________________ Name of Property Owner:____________________ Name of Tenant:____________________ Property Address:____________________ Telephone Number:____________________ Cell Number:____________________ Email Address:____________________ Date Application Review Meeting with CRA Staff: __________________________ II.Project Summary Name, Description and operating hours of the food and drink business: _______________________________________________________________________________________ _______________________________________________________________________________________ ____________________________ Total Project Cost: $____________________ Amount of Grant Funds Requested:$____________________ III.Project Description and Grant Match Community Redevelopment Agency Food and Drink Incentive Program Application City of Clearwater CRA | Anchor Tenant Incentive Program 2 1. Please attach a scope of work, an estimated timeline and description of how the grant funds will be invested. Please attach two bids for the proposed scope of work. Bid One / Contractor Name:____________________ Bid Amount:$____________________ Bid Two / Contractor Name:____________________ Bid Amount:$____________________ 2. Please describe how the property owner will meet the 50% grant match. 3. Please describe how the tenant will meet the 50% grant match. 4. How will you ensure this project stays within the costs and timeline described in your proposal? 5. Who is your ideal patron for this business? How will you market to them? 6. How is your business different than what exists in Downtown Clearwater today? IV.Additional Documentation Required Copy of Pre-Qualification Applications. BEFORE photos of the site. Proof of property ownership. 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. V.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 ____________________ VI.Property Owner Authorization As the property owner, I hereby authorize the applicant as identified above to undertake the activities specified in this application. City of Clearwater CRA | Anchor Tenant Incentive Program 3 Property Address ____________________ Property Identification Number ____________________ Owner Signature ____________________ Print Name ____________________ Date ____________________ For Staff Use Only Date Application Received: Date of Staff Review: Scheduled CRA Trustee Hearing Date: Staff Recommendation: Recommend Approval Recommend Approval with modifications Recommend Denial Thank you for your interest in Downtown Clearwater and the Food and Drink Incentive Program. To start the process please complete this Pre-Qualification Form. Please email the completed form to anne.fogarty- france@myclearwater.com. City staff will review this form and follow-up with you within 10 business days to discuss your eligibility for the incentive program. CONTACT INFORMATION Applicant Name ____________________ Phone Number ____________________ Email Address ____________________ This section is for property owners 1. What is the address of the property/space you wish to lease to a restaurant? ________________________________________________________________________ 2. Is the address above commercial property in the Downtown Core or Prospect Lake districts? Y or N 3. Are you willing to lease to a food and/or drink establishment that is open on nights and weekends for a minimum of five years? Y or N 4. Does the property have any outstanding code violations? City liens? Outstanding tax bills? Y or N 5. What amount of grant funding are you seeking? The maximum request is $250,000. _______________________________________ 6. How will you meet the 100% required match for the grant? (Note that subsidized rent is only eligible for up to 50% of the required match). Please describe your matching proposal below _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ 7. Please describe the space that you wish to rent. What is the condition of the space, the total floor area and current lease rate? Does it currently contain kitchen equipment? A grease trap? _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ City of Clearwater Community Redevelopment Agency Food and Drink Incentive Program Pre-Qualification Form City of Clearwater CRA | Food and Drink Incentive Program | Pre-Qualification 2 This section is for tenants 1. Proposed Business Name __________________________________________________________ 2. Briefly describe your business concept for Downtown Clearwater including operating hours, the type of patrons you wish to attract and the type food and/or drink you will serve. _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ ______________________________________________________________________________________ 3. What amount of grant funding are you seeking? The maximum request is $250,000. _______________________________________ 4. How will you meet the 100% required match for the grant? (Note that the CRA funds will go directly to the property owner on a reimbursement basis). Please describe your matching proposal below _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ 5. Please describe the space that you wish to lease. What is the total floor area and other amenities you would like to be provided? _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ 5. What is your desired timeframe for opening your business? ____________________________________ Thank you! To review the Food and Drink Incentive Program description, please visit www.downtownclearwater.com. Please Note: Florida has a very broad Public Records Law. Most written communications to or from City Officials and employees regarding City business are public records available to the public and media upon request. Your written communications, including your email address, may therefore be subject to public disclosure, unless otherwise exempt by the Public Records Law. City of Clearwater CRA | Food and Drink Incentive Program | Pre-Qualification 3 For staff use only 1. Date Form Received: 2. Date of Staff Review: 3. The Pre-Qualification Form is Complete Incomplete 4. Date Applicant was notified of a decision: gilef D 0 W N T O W N CLEARWATER DRAFT City of Clearwater Community Redevelopment Agency Food and Drink Incentive Program A. Program Overview The Community Redevelopment Agency's (CRA) Food and Drink Incentive Program provides grant funding to commercial property owners to assist with building improvements and rent subsidy. The goal of the program is to provide financial incentive to commercial property owners in downtown to renovate their buildings to attract food and/or drink businesses that are open on nights and weekends. This will help stimulate the local economy and improve quality of life for Clearwater residents and visitors. Currently, historic commercial spaces in Downtown Clearwater need significant repair to meet modern fire and building code requirements. Newer commercial spaces have the potential to serve restaurant uses, but lack the necessary restaurant support services, e.g. grease traps. The CRA has allocated $1 million dollars for this program and the minimum grant is $10,000 and the maximum grant per tenant space is $250,000. This grant requires a partnership between the property owner, tenant and the CRA. The CRA's grant funding will be used to reduce the overall project cost for building improvements by a property owner by 50%. This is a time limited grant opportunity that will begin DATE and will end DATE or when the funding has been exhausted. The Food and Drink Incentive Program directly promotes goals and objectives of the 2018 Clearwater Downtown Redevelopment Plan, specifically: People Goal (page 46) — Downtown shall be a place that attracts residents, visitors, businesses and their employees and enable the development of community. The City shall encourage a vibrant and active public realm, recreation and entertainment opportunities and support the community and neighborhoods. Objective 1E: Maintain Cleveland Street as Downtown's Main Street which is valued for its historic character and pedestrian scale. Urban Design Goal (page 48) — Downtown will be a dynamic built environment of dense and livable patterns and active and attractive streets through the use of quality urban design and architecture. Objective 4D: Encourage renovation, restoration and reuse of existing historic structures to maintain the character of Downtown's neighborhoods. The Food and Drink Incentive Program's main objectives are as follows: Attract food and/or drink establishments that are open on nights and weekends to the Downtown Core and Prospect Lake districts to promote Downtown's ongoing revitalization as a dining destination. Page ZCAA 'cc% 0 City of Clearwater CRA I Food and Drink Catalyst Program Increase the number of commercial properties that can attract and accommodate food and drink tenants within the next 12 months. Improve the condition and appearance of downtown commercial buildings. Increase downtown commercial occupancy rates and property values. B. Program Eligibility and Activities Property Owners Commercial property located in the Community Redevelopment Area's Downtown Core and Prospect Lake districts are eligible for participation. Ad -valorem property tax exempt properties are not eligible (in cases where a portion of a property is tax-exempt, funding may be made only to the taxable portion/percentage of the property.) A property must be current in tax bills and without city liens. Property owners must commit to matching the CRA's grant funding dollar for dollar in reduced rent and/or building improvements that will be maintained for a minimum of five years. They must secure a tenant that is a food and/or drink business that is open on nights and weekends. Rent Reduction A property owner may provide free or reduced rent to the tenant over a period of five years to match the CRA's grant. The lease rate must be approved by the CRA Director which will include a review by an independent commercial real estate broker. Reduced rent qualifies for a maximum of 50% of the required match amount. The general rule of thumb for improvements that qualify towards a property owner's match is that the improvement should remain with the property, should improve the appearance and value of the property and should benefit tenants. Eligible interior and exterior building improvements include: ADA requirements Florida Fire Protection Code Requirements Mechanicals and HVAC systems Plumbing and electrical, including utility connections and upgrades Structure stabilization (repair and replacement of foundations, footers, load bearing walls, roofing systems) Room and space reconfiguration including wall relocations Grease traps Windows/Doors Outdoor hardscape improvements, landscape improvements and lighting Energy efficiency improvements General building or facade repairs and roof repair and replacement are eligible Tenants Food and/or drink business tenants, that are open on nights and weekends, are eligible for this grant program in partnership with a commercial property owner. The tenant must match the CRA's grant funding dollar for 2 City of Clearwater CRA 1 Food and Drink Catalyst Program dollar in business start-up costs, inventory and interior and/or exterior building improvements. The tenant must have a minimum five-year lease term with the property owner. Eligible business start-up costs include: Furniture, fixtures, equipment, signage, inventory Example Grant Proiect: The property owner at 123 Downtown Lane has secured a tenant who wishes to establish a full service, Italian restaurant and wine tasting room. The restaurant is open Thursday -Saturday nights and offers brunch on the weekend. The wine tasting room is open from 4-7pm Tuesday – Friday and from 11am-3pm on the weekends. The proposed restaurant will be in one corner unit of a larger building. All eligible improvements are limited to that unit. The total cost of the project is $350,000. Financial Breakdown Property Owner: 25,000 in rent subsidy (up to $87,500 or 50% of $175,000 would be eligible) 150,000 in buildout costs including a grease trap, upgrades to the fire protection system and ADA bathroom Total Property Owner Investment: $175,000 Tenant: 50,000 in furniture 75,000 in kitchen equipment 25,000 in inventory 25,000 for signage and lighting Total Tenant Investment: $175,000 CRA: 87,500 grant to property owner paid on a reimbursement basis which reduces the Property Owner's investment costs by 50% C. Grant Process: There are three phases to this grant program, Pre -Qualification for Owners and Tenants, Full Application Submission and Review and Project Implementation. The grant program timeline is available at www.downtownclearwater.com Pre -Qualification for Owners and Tenants The purpose of the Pre -Qualification review is to ensure that property owners and prospective tenants meet the minimum eligibility requirements to participate in the grant program. Each potential owner/tenant grant applicant must submit the Pre -Qualification form for review and approval by the CRA Director prior to submitting a full grant application. Full Application Submission and Review 3 City of Clearwater CRA 1 Food and Drink Catalyst Program After a successful Pre -Qualification, property owners and tenants may jointly submit a full grant application for review. 1. Applicants set up a meeting with CRA staff to review the full application requirements which includes a review of the tenant's business model, eligible improvement activities and a proposed scope of work and budget. 2. Property Owner and Tenant submit a full application. 3. Application is reviewed within 15 days of submission for completeness and accepted or returned with comments by CRA Director. 4. Once an application is determined complete by the CRA Director, the grant request will be heard at the next available CRA Board hearing. Each application will be reviewed by an internal staff committee including the CRA Director, Planning Director, Building Official, City Attorney, Assistant City Manager and Economic Development Director according to the following criteria: Consistency with the goals of the Downtown Redevelopment Plan. Feasibility of the proposed scope of services and timeline. Clear definition of a target audience and marketing plan. Tenant track record and business experience. Ability to provide an experience that does not exist in Downtown presently. 5. All Food and Drink Incentive grant requests require the approval of the CRA Trustees. The CRA Director shall prepare a recommendation for the trustees based on the internal staff committee's review. Project Implementation After the grant is approved by the CRA Trustees, the grantee may begin their project. 1. The CRA executes the grant agreement, which includes a payment schedule and project milestones. Submission of receipts, invoices and other appropriate documentation will be required for payment. 2. All necessary permits and approvals are 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. 3. Applicant completes a Grant Completion Form which includes AFTER pictures of the project, a copy of the Certificate of Occupancy and any final invoices for payment. D. Next Steps If you are interested in learning more about the Food and Drink Incentive Program, please visit downtownclearwater.com or contact Anne Fogarty France at anne.fogarty-france@myclearwater.com 4 Proposed Food and Drink Incentive Grant Timeline August August 13th - New program adopted August 14th - Pre -Qualification for Property Owners and Tenants Opens August 14th - 17th - Forms posted on website, Press releases sent August 14th - Workshop 1 August 16th - Workshop 2 August 20th - Workshop 3 August 22nd - Workshop 4 August 29th - Workshop 5 September September 14th - Pre -Qualification period closes September 17th - List of Pre -Qualified applicants is published September 18, 19 and 28th - Property Owner and Tenant joint workshops October October 1g — Full Application opens October 8 -12th —1 on 1 meetings with CRA Director October 26th — Full application closes November November 9th - All grants requests reviewed and in Legistar December December 3' — CRA Trustees vote on grants 1 Proposed Food and Drink Incentive Grant Timeline with additional community engagement September Week of September 3rd - Facilitated focus groups with Property Owners and Tenants to discuss potential incentive programs October October 8th — Revised program uploaded into Legistar for the October 29th CRA agenda October 30th — Pre -Qualification period opens, Press Release sent, Forms uploaded to the website November 5 Workshops held throughout the month November 30th - Pre -Qualification period closes December December 7th - List of Pre -Qualified applicants is published 3 Property Owner and Tenant matchmaking workshops December 10th — Full Application opens 1 on 1 meetings with CRA Director January January 7th — Full application closes Staff review and upload recommendations into Legistar February CRA Trustees vote on grants 2