10/01/2018Monday, October 1, 2018
9:00 AM
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
Council Chambers
Community Redevelopment Agency
Meeting Agenda
October 1, 2018Community Redevelopment Agency Meeting Agenda
1. Call To Order
2. Approval of Minutes
2.1 Approve the minutes of the September 4, 2018 CRA Meeting as submitted in
written summation by the City Clerk.
3. Citizens to be Heard Regarding Items Not on the Agenda
4. Director's Report
4.1 Discuss 18-month action plan for the CRA.
4.2 Discuss Food and Drink Incentive Grant.
5. Adjourn
Page 2 City of Clearwater Printed on 9/28/2018
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#18-5077
Agenda Date: 10/1/2018 Status: Agenda ReadyVersion: 1
File Type: MinutesIn Control: Community Redevelopment Agency
Agenda Number: 2.1
SUBJECT/RECOMMENDATION:
Approve the minutes of the September 4, 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 9/28/2018
Community Redevelopment Agency Meeting Minutes September 4, 2018
Page 1
City of Clearwater
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
Meeting Minutes
Tuesday, September 4, 2018
9:00 AM
Council Chambers
Community Redevelopment Agency
Draft
Community Redevelopment Agency Meeting Minutes September 4, 2018
Page 2
City of Clearwater
Roll Call
Present 5 - Chair George N. Cretekos, Trustee Doreen Caudell, 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 9:19 a.m. at City Hall.
2. Approval of Minutes
2.1 Approve the minutes of the August 13, 2018 CRA Meeting as submitted in written
summation by the City Clerk.
Trustee Allbritton moved to approve the minutes of the August 13,
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 an Interlocal Agreement with the Community Redevelopment Agency (CRA) to
provide staffing, Information Technology services, general administrative services and
telephone services for the CRA, provide for the reimbursement of certain expenses by the
CRA to the City and authorize the appropriate officials to execute same.
As per Section 163.387, Florida Statues, allows that tax revenue in the
redevelopment trust fund may be expended for undertakings of a community
redevelopment agency, including providing for staff, as needed to implement the
2018 Clearwater Downtown Redevelopment Plan. The CRA agrees to provide
TIF funding in a total amount not to exceed $500,000 for Fiscal Year 2018-2019
to provide staffing for the CRA.
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Community Redevelopment Agency Meeting Minutes September 4, 2018
Page 3
City of Clearwater
This total amount includes $24,020 for Information Technology Services and
$2,000 for telephone services. These amounts are subject to adjustment and
approval in the CRA budget each year.
Trustee Caudell moved to approve an Interlocal Agreement with the
Community Redevelopment Agency (CRA) to provide staffing,
Information Technology services, general administrative services
and telephone services for the CRA, provide for the reimbursement
of certain expenses by the CRA to the City, and authorize the
appropriate officials to execute same. The motion was duly
seconded and carried unanimously.
4.2 Approve an Interlocal Agreement with the Downtown Development Board (DDB) to
provide personnel, administrative and management services during Fiscal Ye ar
2018-2019 in the amount of $71,026, refund the CRA tax increment fee of $274,651 and
authorize the appropriate officials to execute same.
Florida Statutes 163.387 requires all taxing authorities, which includes the DDB,
to make an annual appropriation in an amount equal to the incremental increase
in the ad valorem revenue within the CRA area. The DDB’s increment payment
is $274,651 according to the Pinellas County Property Appraiser’s office. In a
spirit of cooperation to further the downtown redevelopment plan, the CRA
Trustees executed the first Interlocal Agreement in Fiscal Year 1999-2000 to
provide personnel, administrative and management services to the DDB and to
refund the difference between the increment payment and the management fee.
This is the twentieth fiscal year that the CRA would enter into the agreement.
Pursuant to Florida Statute 163.01, the CRA and DDB can enter into this
agreement in which the DDB agrees to perform certain responsibilities and
functions including funding projects and programs consistent with the
downtown redevelopment plan. The intent of this agreement is for the DDB and
the CRA to work collaboratively on projects and programs that further downtown
goals and objectives. The management of the DDB by CRA staff enables the
CRA and the DDB to utilize the public dollars more efficiently.
The DDB shall pay the CRA $71,026 for the services agreed to in the Interlocal
Agreement.
The DDB approved the Interlocal Agreement at their meeting on August 1, 2018.
Trustee Cundiff moved to Approve an Interlocal Agreement with the
Downtown Development Board (DDB) to provide personnel, Draft
Community Redevelopment Agency Meeting Minutes September 4, 2018
Page 4
City of Clearwater
administrative and management services during Fiscal Year
2018-2019 in the amount of $71,026, refund the CRA tax increment
fee of $274,651 and authorize the appropriate officials to execute
same. The motion was duly seconded and carried unanimously.
4.3 Approve an Interlocal Agreement between the Clearwater Community Redevelopment
Agency (CRA) and the City of Clearwater to provide CRA funding in Fiscal Year
2018-2019 in the amount of $176,279.96 to underwrite the cost of additional Community
Policing services by the Clearwater Police Department in the Downtown Gateway
District, Prospect Lake District, and Downtown Core District, encompassed by the CRA
to address quality of life issues, drug dealing, prostitution and homelessness and
authorize the appropriate officials to execute same.
Quality of life issues, drug dealing, prostitution, and homelessness, all
negatively impact the implementation of re-development plans. Additional
community policing resources are needed to effectively address these issues
above and beyond the level provided by routine road patrol functions.
An allowable funding source of this action item is the use of CRA Tax Increment
Financing (TIF) funds. Florida Statutes allows for the use of TIF funds for
“community policing innovations” in Community Redevelopment Areas.
The CRA and Clearwater Police Department have reached an agreement on a
proposed scope of services and terms as delineated in the Interlocal
Agreement. Included in the scope is the delineation of specific, measurable
crime reduction targets by which to monitor the success of the initiative as well
as providing clear language required by statute assuring that the resources are
applied to the CRA/East Gateway area.
APPROPRIATION CODE AND AMOUNT:
Funding for this interlocal agreement will be from CRA project code
3887552-94849
In response to questions, Police Chief Daniel Slaughter said the
Department tracks the statistics in certain crime categories (i.e., robbery,
aggravated battery, burglary, etc.) and over the course of this
arrangement, the statistics are down 20%. The only change in the
agreement is elimination of the spice and synthetic drugs focus; the
agreement now includes language addressing drug in general. Chief
Slaughter said the total cost for services increased by $1,351. The City
Manager said staff provided the Trustees with a detailed summary of
police activities for the CRA area; as long as there is a market for
unlawful activity, police presence in the area will continue. Chief Draft
Community Redevelopment Agency Meeting Minutes September 4, 2018
Page 5
City of Clearwater
Slaughter said it will be easier to trespass individuals from the City Hall
site once City Hall is vacated.
Trustee Hamilton moved to approve an Interlocal Agreement
between the Clearwater Community Redevelopment Agency (CRA)
and the City of Clearwater to provide CRA funding in Fiscal Year
2018-2019 in the amount of $176,279.96 to underwrite the cost of
additional Community Policing services by the Clearwater Police
Department in the Downtown Gateway District, Prospect Lake
District, and Downtown Core District, encompassed by the CRA to
address quality of life issues, drug dealing, prostitution and
homelessness and authorize the appropriate officials to execute
same. The motion was duly seconded and carried unanimously.
4.4 Approve the Fiscal Year 2018-2019 Community Redevelopment Agency Preliminary
Budget, adopt CRA Resolution 18-02 and authorize the appropriate officials to execute
same.
With the adoption of the 2018 Clearwater Downtown Redevelopment Plan, the
Community Redevelopment Agency has updated and realigned its project
expenditures to facilitate implementation of the new plan. The major highlights of
the Fiscal Year 2018-2019 proposed preliminary budget are as follows:
Tax Increment Revenue increased by $792,415 over the Amended 2017-2018
budget, reflecting an increase in taxable value of approximately 20% in the
original CRA area, and an increase in taxable value of approximately 9% in the
expanded (Downtown Gateway) CRA. These compare with citywide 9.8%
increase in value.
Operating expenditures have increased by $166,282 to reflect an increase in the
use of consulting services for projects identified in the Downtown Plan including
utility studies, housing market studies, architectural and engineering services to
determine redevelopment possibilities for buildings in the CRA and real estate
appraisals. This portion of the budget also includes Information Technology
charges as per City/CRA Interlocal Agreement, the pass through revenues to
the Downtown Development Board (DDB) and the $100,000 agreement with
Ruth Eckerd Hall for Blast Friday.
Transfers Out to various projects have been designated in the CRA Plan.
County TIF Funds, $1,602,371 for this fiscal year, are restricted to capital
improvement projects and land acquisition. $1 million dollars of County funds
are allocated towards land acquisition. The remainder of the funds will be used
for wayfinding and trail improvements. $300,000 has been allocated towards Draft
Community Redevelopment Agency Meeting Minutes September 4, 2018
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City of Clearwater
Placemaking and Downtown Marketing and Events to support programming and
public art in Station Square, Second Century Studios and throughout the CRA.
There will be an increased focus on public relations and targeted advertising
campaigns through social media to increase foot traffic in Downtown. Finally,
$250,000 has been allocated to incentivize the redevelopment of the
commercial warehouse and adjacent greenspace on at 112 South MLK, Jr
Avenue to redevelop it as a full-service restaurant, microbrewery and
entertainment venue or a similar use.
One new project code is being proposed, R1901 - Streetscape and Trail
Improvements, to capture the new focus on improvements for the Pinellas Trail
and streetscaping designs and projects throughout the CRA.
In response to questions, CRA Executive Director Amanda Thompson
said staff needs to submit the TIF report to Pinellas County in October
before discussing an increase for the county portion. The Department
currently has a vacant position that has been reclassified to a Public
Relations and Programs Manager; candidates are being interviewed for
the position. She said a part-time position may be needed to run the
upcoming Dali Program next year.
Trustee Allbritton moved to approve the Fiscal Year 2018-2019
Community Redevelopment Agency Preliminary Budget. The
motion was duly seconded and carried unanimously.
CRA Resolution 18-02 was presented and read by title only. Trustee
Caudell moved to adopt Resolution 18-02. The motion was duly
seconded and upon roll call, the vote was:
Ayes: 5 - Chair Cretekos, Trustee Caudell, Trustee Cundiff, Trustee Hamilton
and Trustee Allbritton
4.5 Approve an Agreement between the Community Redevelopment Agency and Ruth
Eckerd Hall, Inc., a Florida non-profit corporation, to produce Downtown Clearwater’s
festival series (Blast Fridays, Miracle on Cleveland Street, Cruisin’ at the Capitol) in an
amount not to exceed $100,000 for Fiscal Year 2018-2019 and authorize the appropriate
officials to execute same.
The Community Redevelopment Agency proposes to contract with Ruth Eckerd
Hall, Inc. to produce a downtown festival series that includes seven events,
tentatively scheduled as follows:
• December 1,2018 - Miracle on Cleveland Street Draft
Community Redevelopment Agency Meeting Minutes September 4, 2018
Page 7
City of Clearwater
• January 25, 2019- Blast Friday
• Mid-February - Cruisin’ at the Cap (dates TBD)
• February 22, 2019 - Blast Friday
• March 29, 2019 - Blast Friday
• April 26, 2019 - Blast Friday
• May 24, 2019 - Blast Friday
The Downtown Development Board has allocated $40,000 to help fund the
festival series, subject to CRA favorable action.
These events are signature events for Downtown and well attended. They are
highly regarded by Downtown merchants who consistently report an increase in
business during Blast Friday. CRA staff recommends approval of the Fiscal
Year 2018-2019 Agreement between the CRA and Ruth Eckerd Hall, Inc.
APPROPRIATION CODE AND AMOUNT:
Funding is available through Operating Budget 09311-581000
Trustee Cundiff moved to approve an Agreement between the
Community Redevelopment Agency and Ruth Eckerd Hall, Inc., a
Florida non-profit corporation, to produce Downtown Clearwater’s
festival series (Blast Fridays, Miracle on Cleveland Street, Cruisin’ at
the Capitol) in an amount not to exceed $100,000 for Fiscal Year
2018-2019 and authorize the appropriate officials to execute same.
The motion was duly seconded and carried unanimously.
4.6 Approve an Interlocal Agreement between the Clearwater Community Redevelopment
Agency (CRA) and the City of Clearwater to provide CRA funding in Fiscal Year
2018-2019 in the amount of $97,260 to underwrite activities in the Clearwater Main
Library that support community learning in the areas of Science, Technology, Engineering
and Math, Entrepreneurship and small business growth and authorize the appropriate
officials to execute same.
The Clearwater Main Library is a partner in the Clearwater Business SPARK
ecosystem of organizations working to support the development of
entrepreneurship and small businesses throughout Clearwater. This
partnership was prompted by the ULI report recommending public/private
partnerships to encourage business growth in this area.
The Main Library has a prominent position in the CRA area and will provide
education and training in the Business and STEM areas through research
opportunities, STEM maker space areas, classes and tutorials and meeting
accommodation.
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Community Redevelopment Agency Meeting Minutes September 4, 2018
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City of Clearwater
The CRA funding will pay one staff member to oversee these functions, assist
with additional library hours to make the facility available when needed by the
business community and provide educational and training opportunities.
APPROPRIATION CODE AND AMOUNT:
Funding will be from 3887552-94887 Library Activation
Trustee Hamilton moved to approve an Interlocal Agreement
between the Clearwater Community Redevelopment Agency (CRA)
and the City of Clearwater to provide CRA funding in Fiscal Year
2018-2019 in the amount of $97,260 to underwrite activities in the
Clearwater Main Library that support community learning in the
areas of Science, Technology, Engineering and Math,
Entrepreneurship and small business growth and authorize the
appropriate officials to execute same. The motion was duly
seconded and carried unanimously.
5. Director's Report
CRA Executive Director Amanda Thompson said focus group meetings with
property owners and tenants are scheduled for this Thursday at the Main
Library; Tom Kennedy, a commercial broker, will be facilitating the focus
groups. She will follow-up with those who are unable to attend with a
survey. She said the Florida Center for Creative Photography has taken
over Second Century Studios through October 12, 2018.
6. Adjourn
The meeting adjourned at 9:39 a.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#18-5185
Agenda Date: 10/1/2018 Status: Agenda ReadyVersion: 1
File Type: ReportIn Control: Community Redevelopment Agency
Agenda Number: 4.1
SUBJECT/RECOMMENDATION:
Discuss 18-month action plan for the CRA.
SUMMARY:
APPROPRIATION CODE AND AMOUNT:
USE OF RESERVE FUNDS:
Page 1 City of Clearwater Printed on 9/28/2018
|1CITY OF CLEARWATER
Proposed CRA Strategy
October 2018 - March 2020
|2Downtown Clearwater – 18-Month Plan
Creating Lasting Change in Downtown
Known
•Other cities are built out
•Market demand to live near water
•Can attract residents and visitors to
Downtown
•Building a live/work/play
neighborhood is successful approach
•Stable leadership through March 2020
Unknown
•Change in market conditions
•Exactly who our residents
and visitors will be
•What property owners will
do with their property
•Who will be in leadership
after March 2020
|3Downtown Clearwater – 18-Month Plan
Shifting the Perception of the City Government
•From Risk Adverse to
Committed
•From Indifferent to Welcoming
•From Unpredictable to
Predictable
•From Scattered to Focused
•From Sole Funder to Partner
•From Poor Timing to
Synchronistic Timing
Shifting the Perception of Downtown
•From Vacant to Vibrant
•From Quiet to Lively
•From Concerts to a Variety of Events
•From No Arts to Arts Infused
•From Exclusive to Welcoming
•From Disconnected to Connected
9/26/2018 4 |4Downtown Clearwater – 18-Month Plan
Desired Outcome
Change the perceptions held by the public
and investors about city government and
downtown Clearwater to one that aligns with
the adopted vision.
9/26/2018 5 |5Downtown Clearwater – 18-Month Plan
Four Steps to the Desired Outcome
1. Commit to an 18-month strategy with a defined focus and
measurable outcomes
2. Communicate the strategy
3. Implement the strategy
4. Track and publish results*
*Repeat steps two through four for 18 months
9/26/2018 6 |6Downtown Clearwater – 18-Month Plan
Proposed 18-Month Strategy
1. Create and share authentic,
positive stories about
Downtown Clearwater
2. Begin construction on Imagine
Clearwater
3. Permit 600 housing units
4. Attract $100 million dollars of
private investment
9/26/2018 7 |7Downtown Clearwater – 18-Month Plan
Create and Share Positive Stories
•New logo and
website
•Targeted events
e.g. the Dali tour
•New wayfinding
signage approved
•Targeted social media
campaigns
•Dedicated development
and permitting team
•Designated CRA resource
in city departments
Completed Underway Planned
•Hiring for full- time
PR person
•Public art programs
•Creating signature
and everyday events
9/26/2018 8 |8Downtown Clearwater – 18-Month Plan
Begin Construction on Imagine Clearwater
•Presented the 15%
design to public and
gathered feedback
•Decision made to move
out of City Hall
•Early meetings with
mixed-use developers
and cultural anchor
institutions
•Issue RFP's for
redevelopment of city
parcels
•Attract a cultural anchor
•Imagine park
construction
commences
Completed Underway Planned
•New parking
location
recommendations
•Council approves
remaining design
•Demolition of
Harborview Center
9/26/2018 9 |9Downtown Clearwater – 18-Month Plan
Permit 600 Housing Units
•Acquired the
parking lot adjacent
to The Nolen
•Provide a safe
environment
•Approval for
Streetscape Phase III
•Attract 4-7 new restaurants/bars
•Build Mercado
•Market research and utility study
•Housing developer event
•Pinellas Trail improvements
Completed Underway Planned
•Sustain current
businesses
•Issue RFP for MLK
Jr Avenue
warehouse site
•Issue two RFPs for
rental housing
9/26/2018 10 |10Downtown Clearwater – 18-Month Plan
Attract $100 Million in Private Investment
•New state opportunity
investment fund
•Updated zoning code
•The Nolen and Apex
1100 ($44+ million)
•Land acquisition
•Market research
•Targeted pitches
Completed Underway Planned
•Land sale and
acquisition
•Retail developer
pitch
•Educational and
cultural
partnerships
9/26/2018 11 |11Downtown Clearwater – 18-Month Plan
$50 M
Residential
$30M
Commercial
$20M
Other
In March 2020, we hear
•"I decided to open my restaurant because the city committed to building
Imagine Clearwater and I see construction. The permit process was
predictable and I knew what I had to do."
•"It was tough with Coachman Park closed for a year, but the city continued
to support events on Cleveland Street and in Station Square."
•"Between The Dali museum pop up, murals and all the art events put on by
the merchants, I can experience something cultural every day of the week."
•"I rented an apartment in downtown because I’m within walking distance
to four restaurants and pubs that I love."
•"With the city's focus on quality of life through walkability, greenspace and
public art, it was a natural place for us to invest."
9/26/2018 12 |12Downtown Clearwater – 18-Month Plan
What about all the other ideas?
•Downtown Development Board
•Clearwater Regional Chamber of Commerce
•Downtown Property Owners
•Clearwater Downtown Partnership
•Downtown Merchants' Association
•Institutional Organizations and Non-profits
9/26/2018 13 |13Downtown Clearwater – 18-Month Plan
First Step to the Desired Outcome
Step 1:
CRA trustees commit to an 18-month strategy with a defined focus and measurable outcomes
•Create and share authentic, positive stories about Downtown Clearwater
•Begin construction on Imagine Clearwater
•Permit 600 housing units
•Attract $100 million dollars of private investment
Desired Outcome
Change the perceptions held by the
public and investors about city
government and Downtown
Clearwater to one that aligns with
the adopted vision.
9/26/2018 14 |14Downtown Clearwater – 18-Month Plan
Steps Two - Four to the Desired Outcome
1. Commit to an 18-month
strategy with a defined focus
and measurable outcomes
2. Communicate the strategy
3. Implement the strategy
4. Track and publish results*
*Repeat steps two through
four for 18 months
We will:
•Implement each strategy area
•Provide monthly reporting to CRA
Trustees
•Provide monthly e-newsletter updates
through downtownclearwater.com
9/26/2018 15 |15Downtown Clearwater – 18-Month Plan
|16CITY OF CLEARWATER
Proposed CRA Strategy
October 2018 - March 2020
Holiday Extravaganza
Your Fun Guide to the Holidays in Downtown Clearwater
Events:
Nov 19 -Dec 30:
o Holiday Pop Up in Second Century Studios
Dec 1:
o Miracle on Cleveland Street
o Capital Theatre: Robert Cray
Dec 2:
o Capital Theatre: Celtic Angels Christmas
Dec 5:
o Tony's: Running for Brews @7pm
o Capital Theatre: The Outlaws
Dec 6:
o Capital Theatre: Iris Dement
Dec 7-9
o Downtown Clearwater Holiday Carnival
Dec 7:
o Capital Theatre: The Outlaws
Dec 8:
o Island Estate Boat Parade
o Capital Theatre: Manhattan Transfer
Dec 9:
o Capital Theatre: Peter White Christmas
Dec 10:
o Capital Theatre: Michael W. Smith Christmas
Dec 12:
o Pour Yours: Karaoke Night
o Tony's : Running for Brews @7pm
Dec 13:
o Cleveland Street Cafe: Tour of Rome Special
Dec 14:
o Pour Yours: Holiday Trivia
o Capital Theatre: Holidays with Celebrity
Housewives
o Cleveland Street Cafe: Tour of Rome Special
Dec 15:
o Clearwater Community Players Concert at 4pm
o Capital Theatre: Sweethearts of the Rodeo
Dec 16:
o Movie in SSP "National Lampoon Family
Vacation"
Dec 18:
o Stacy Krupa: Wine Glass Paint Party in Station
Square Suites Courtyard
Dec 19:
o Pour Yours: Karaoke Night
o Tony's : Running for Brews @7pm
o Cleveland Street Cafe: Tour of Rome Special
Dec 20:
o Cleveland Street Cafe: Tour of
Rome Special
o Pour Yours: Tsunami Thursday
Sushi
Dec 21:
o Delphi Academy Holiday
Performance
o Capital Theatre: Rockapella
o Cleveland Street Cafe: Tour of
Rome Special
Dec 23:
o Movie in SSP "Polar Express"
Dec 26:
o Tony's: Running for Brews @7pm
o Pour Yours: Karaoke Night
Dec 27:
o Pour Yours: Tsunami Thursday
Sushi
Dec 30:
o Capital Theatre: Classic Albums
Live: The Beatles Abbey Road
Merchant Specials/ Activities for the Month of
December:
Tony's: Happy Hour 4-7pm $1 off in all craft
beers and house wines
2 off wells
Vector bar & arcade:
o Every Tuesday Drink and Draw
Social Club 7-10pm 3$ select drafts.
o Every Wednesday Vector Arcade
Pinball League
5pm-midnight, league starts 7pm,
Drink specials 20% for league
members on all beers.
o Happy Hour Monday- Thursday 5-
7pm 1$ off all drafts and select
beers.
The Path Bicycles: Free helmet with a
purchase of a kid bike plus free tune ups fo
rlife on all new bike sales
Gregori-Fuster: Art Pop-up
Healthy Pawsibilities: FREE first
appointment and Giving Tree within the
store.
Gala's Gelateria: Every Wednesday in
December, buy 2 gelatos and get a free
small gelato when you say the password
MAMA MIA". Open 4 —10 p.m.
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#18-5186
Agenda Date: 10/1/2018 Status: Agenda ReadyVersion: 1
File Type: ReportIn Control: Community Redevelopment Agency
Agenda Number: 4.2
SUBJECT/RECOMMENDATION:
Discuss Food and Drink Incentive Grant.
SUMMARY:
APPROPRIATION CODE AND AMOUNT:
USE OF RESERVE FUNDS:
Page 1 City of Clearwater Printed on 9/28/2018
|1CITY OF CLEARWATER
Attracting New Food and Drink Experiences
CRA Work Session
October 1, 2018
Agenda
•CRA 18-month strategy
•What is missing in downtown food and drink experiences
•What we heard
•Legal considerations for program design
•Proposed program design
9/28/2018 2 |2CRA –Attracting New Food and Drink Experiences
Relationship to CRA 18-Month Strategy
Actions
•Increase positive stories/experience
•Increase private investment
•Attract new housing
Perception
•Welcoming to new business
•Partner with property owners and
investors
•Focused and understandable approach
•Vibrant/Lively downtown
9/28/2018 3 |3CRA –Attracting New Food and Drink Experiences
Goal: Vibrant
Downtown
•Walkability
•Something to
walk to
Food and Drink are
Successful Attractors
•Destination
Restaurant OR
Restaurant
Destination?
What’s Missing?
•Of the 31 food
and drink
establishments,
only 13 are open
nights/weekends
for dinner
GAP: Places That Are Open on
Nights/Weekends
Happy Hour and weekend destination dining
patrons are underserved the downtown market
9/28/2018 4 |4CRA –Attracting New Food and Drink Experiences
Actions To Date
July:
•Introduced new grant program
August:
•Asked for feedback and input
September:
•Held three focus groups and an
online survey
•Focus groups included current
tenants, prospective tenants and
property owners
•Focus groups were
facilitated by Tom
Kennedy, commercial
real estate
•Clearwater Regional
Chamber of Commerce
was present at the focus
groups
•City Attorney’s office was
present at the focus
groups
9/28/2018 5 |5CRA –Attracting New Food and Drink Experiences
Highlights from Market Research
In comparison to St. Petersburg
and Tampa downtowns:
•Lower rent amounts
•Similar vacancy levels
•Less population within one mile
•Similar population within five
miles
Key Takeaways:
•Enough people within five miles
to support new restaurants
•Important to increase the
population downtown to provide
long-term sustainability for
restaurants and decrease
perception of risk
9/28/2018 6 |6CRA –Attracting New Food and Drink Experiences
Focus Group: Why Establish a
Business in Clearwater?
•Business owner lives in Clearwater
•Low overhead costs to start up
•Landlord facilitated with low/free rent
•Excited about Imagine Clearwater (but don’t know if it will happen)
•Beautiful streetscape
•Downtown is changing for the better
9/28/2018 7 |7CRA –Attracting New Food and Drink Experiences
Focus Group: Biggest Barriers?
•Lack of foot traffic and 24/7 residents
•Lack of marketing for downtown
•Permitting process is unpredictable
•Too expensive to take a risk and low trust in the city to complete projects
•A grant only helps in year one, what about year two through five?
•Property owner is unlikely to invest in their buildings unless they see a
return on investment in two years or they have a proven tenant
•Many tenants want to buy their own building
9/28/2018 8 |8CRA –Attracting New Food and Drink Experiences
Focus Group: What Should the CRA Do?
•Focus on marketing downtown and producing events
•Build more housing
•Build more cultural attractions, e.g. Bellagio Fountains
•Commit to Imagine Clearwater and other long-term plans
•Make permitting process clear and predictable
9/28/2018 9 |9CRA –Attracting New Food and Drink Experiences
Focus Group: Thoughts on Grant Program Design
•Current tenants will not receive funding support from
property owners
•About half of property owners are likely to participate in
paying for improvements to their building
•Tenants would like a real estate database
•Building out a restaurant costs a minimum of $300,000
•Use a contest approach where the first applicant receives the
most money
•Define the program clearly and commit to a schedule to
minimize confusion
9/28/2018 10 |10CRA –Attracting New Food and Drink Experiences
CRA Food and Drink Program Goals
•Create a grant program that aligns with 18-month strategy and
addresses the current gap in our food and drink market ($1 million
grant budget)
•Legally compliant with focus on building improvements
•Open a minimum of four new, eligible businesses within 18 months
•Provide a grant option for tenants that were left out of the Anchor
Tenant program because they were NOT destination restaurants or
breweries
•Identify property owners willing to invest in their properties in the
next six months
9/28/2018 11 |11CRA –Attracting New Food and Drink Experiences
Legal Perspective
Role of CRA
•Tie to downtown development plan
•Community problem vs. individual
problem
•Transparent, repeatable process
Securing Public Dollars
•Reimbursement
•Unified Commercial Code
•Performance mortgage
9/28/2018 12 |12CRA –Attracting New Food and Drink Experiences
Possible Grant Program: Tenants
Full Service Restaurant
•Under construction or received a
Certificate of Occupancy in 2018 prior
to November 1
•Eligible food/drink improvements
•No property owner involvement
•Submit receipts for improvements
•Will cover 35% of costs up to $100,000
•Must provide some type of legal and
financial performance guarantee
No Kitchen
•Under construction or received a
Certificate of Occupancy in 2018
prior to November 1
•Eligible food/drink improvements
•No property owner involvement
•Submit receipts for improvements
•Can receive a reimbursement
grant up to $15,000 maximum
9/28/2018 13 |13CRA –Attracting New Food and Drink Experiences
Proposed Grant Program: Owners
•Property owner pre-qualifies and sets total improvement budget
for building to make it “restaurant ready”
•CRA sets a tentative grant approval that reduces property owner
costs by 50%. Maximum grant remains $250,000
•Property owner has 60 days to find an eligible tenant
•First-come, first-served to receive full grant amount
•Funding is on reimbursement basis for improvements
•Improvements only, not eligible for rent reduction
9/28/2018 14 |14CRA –Attracting New Food and Drink Experiences
Proposed Timeline
Property Owners
•October: adoption of program
•November: education through
workshops, pre-qualification
•December: preliminary grant amount
approved
•January –February: owner finds
tenants, grant review
•March: grants awarded
Tenants
•October: adoption of program
•November and December: submit
grant requests
•January: grant review
•February: grants awarded
9/28/2018 15 |15CRA –Attracting New Food and Drink Experiences
|16CITY OF CLEARWATER
Attracting New Food and Drink Experiences
CRA Work Session
October 1, 2018
0 0 WN f OWN
CLEARWATER
TO: Amanda Thompson, CRA Director
FROM: Anne Fogarty France, CRA Business Assistance Manager
DATE: September 26, 2018
RE: Summary of Food and Drink Focus Group Results
The Community Redevelopment Agency (CRA) established the Anchor Tenant Incentive
Program in June 2017 to attract "anchor tenant" restaurants and breweries to Downtown
Clearwater. At the August 2018 CRA Meeting, the CRA Trustees repealed and replaced the CRA
Anchor Tenant Incentive Program. The program had failed to attract eligible tenants and
participating property owners due to its lack of clarity and a defined timeline for review.
Additionally, the risk and the burden of compliance was fully on the tenant in what was
perceived as a high-risk investment market.
CRA Trustees directed staff to hold meetings with Downtown Clearwater property owners and
tenants to develop a new approach with a focus on broadening the eligible businesses to those
that served food and/or drinks and were open on nights and/or weekends. CRA staff and the
Clearwater Regional Chamber of Commerce held three focus group meetings to discuss
attracting new food and drink businesses to Downtown Clearwater.
Staff requested participation from existing tenants, potential tenants and property owners to
learn about current barriers that exist in establishing restaurants, bars and cafes in Downtown
Clearwater. Staff solicited input on the types of incentives that could be provided to reduce
those barriers and attract new food and drink businesses and to educate attendees of the CRA
role in the downtown.
The focus group was facilitated by Tom Kennedy of Westport Group, a local expert in
commercial real estate services.
Focus group invitations were sent via Event Brite with follow-up emails, phone calls and
personal invitations.
26 existing tenants of downtown food and drink tenants were invited and 3 attended.
11 potential tenants identified through the Clearwater Downtown Partnership and
previous grant applications were invited and 4 attended from 3 businesses.
32 downtown property owners/managers were invited and 7 attended from 6
properties.
During the three focus groups, participants identified a resounding need for more foot traffic in
downtown, additional residential development to create the "rooftops for the retail and
restaurants" and more unique events. One point of contact in the city's permitting department
to shepherd projects from submittal to final inspection was also a common request. The need
for more positive marketing and education campaigns from the city about parking awareness,
new zoning changes, existing businesses/events and the city's future redevelopment plans were
also high priority items.
For those property owners and tenants who could not attend the focus groups, staff sent a
survey via SurveyMonkey with ten questions. They were given one week to complete the
survey.
21 property owners were sent a survey and 1 responded.
23 current tenants were sent a survey and 3 responded.
Each of the 3 tenants who responded indicated that staff wages and marketing were the largest
expenses in their budget. 2 of the 3 had invested over $100,000 in building out the
restaurant/bar space with no investment from the property owner. The 1 property owner who
responded indicated they would invest $25,000 towards building out their space for a
restaurant/bar.
Based on the feedback from the focus groups it will be difficult to design a program that is "one
size fits all" due to the wide range of financial resources available to property owners and
tenants. There are also different points of view on the types of leases that are preferred by
tenants versus property owners. Both property owners and tenants appreciate maintaining
flexibility to design an agreement that meets their unique circumstances. Attached to this
memo is a copy of the facilitator's discussion guide and a summary of all the focus group
comments.
2
D OWN T OWN
CLEARWATER
DOWNTOWNCLEARWATER.COM
Thursday, September 6, 2018
Clearwater Main Library
Focus Group to
Help Design Future Incentive Programs
Agenda
1. Welcome by Chamber and CRA (5 minutes)
2. Overview of CRA (5 minutes)
3. Market Overview (10 minutes)
4. Facilitated Discussion (30 minutes)
5. Wrap Up and Comment Sheet (10 minutes)
3
Overall Purpose:
To understand what barriers exist to the establishment of food and drink businesses
that are open on weekends/evenings in the Downtown Core and Prospect Lake districts.
To understand what the CRA could do to reduce the identified barriers.
To increase the participants understanding of what role the CRA plays in the downtown.
Current Tenant Focus Group Questions
1. Who is your ideal landlord? Customer?
2. How much did you invest into building out the space you currently occupy?
3. What made opening your business easy? Hard?
4. Why did you decide to open in downtown Clearwater?
5. If the CRA was to offer incentive funds to attract new night/weekend businesses, how
do you think that program should work?
Potential Tenant Focus Group Questions
1. Who is your ideal landlord? Customer?
2. How much would you invest into building out a space?
3. What would make opening your business easy? Hard?
4. What you need to know (to see?) to decide to open in downtown Clearwater?
5. If the CRA was to offer incentive funds to attract new night/weekend businesses, how
do you think that program should work?
Property Owner Focus Group Questions
1. Who is your ideal tenant?
2. What is the Clearwater brand to you? The selling points for your building?
3. When your building is vacant, what are the primary reasons for that?
4. What would you need to do to attract a restaurant tenant that is open evenings and
weekends?
5. If the CRA was to offer incentive funds to attract new night/weekend businesses, how
do you think that program should work?
4
FOCUS GROUP SUMMARY
COMMONALITIES BETWEEN GROUPS
Common threads that surfaced with existing tenants and property owners were:
The need to have more people on the street
The need for more residential developments for the full-time residents needed in
downtown
The need for more businesses and their employees on the street who will eat at
restaurants, shop at stores and use services.
The need to educate locals and visitors about parking awareness: locations of garages,
location of spaces, our parking app, additional signage and access to future parking.
Educational campaigns to increase traffic to downtown from the beach.
More city events to add to business promotions and events.
The need to promote the positive success stories to our neighboring communities.
PERMITTING
Permitting comments brought up by existing tenants were:
Regulations are less onerous in St. Petersburg because there is one point of contact.
There's a disconnect between plan reviewers and inspectors which leads to failed
inspectors.
Older buildings need a reduction in permitting requirements, process and timelines.
The perception of Clearwater government is that it's not true to its word and is a city of
N0"
The permitting process timelines are difficult, laborious and there's shifting on
inspection requirements.
Property owner's comments on permitting included:
There's a need for one point of contact to shepherd development research requests.
Would like city zoning assistance to allow assemblage of properties more easily.
Ease the city's sign and landscaping code.
Potential Tenant's permitting comments were:
Need building and fire inspection team on the same page
An expedited planning process that is predictable.
5
Building from scratch is better than dealing with codes to retrofit existing structures to
code.
CURRENT MARKET
Existing Tenants:
When the Capitol Theatre doesn't have a show, it's desolate downtown.
Came to Downtown Clearwater because of the low overhead costs.
Businesses feel it when the Church of Scientology decides to boycott businesses.
For restaurants and bars to be successful they must make money at dinner.
Empty storefronts are a result of high lease rates that is more rent than the market will
bear.
More of operating budget is spent on marketing and events than rent because we must
create foot traffic.
Property Owners:
Need a way to transport people around downtown (horse & carriage, small train or
trolley)
Need to draw tourists and beach residents to downtown by offering them unique and
special cultural experiences or activity magnets.
Want a long-term tenant that produces a good product
Need positive promotion that we're one mile from the beach, a bedroom community
with a short commute to Tampa/St. Petersburg that has cheaper rent and larger spaces.
Looking for high end restaurants and bars, an entertainment complex and higher end
retail.
Want to build an Oxford Exchange.
Add entertainment that is permanent such as a movie theater or jazz club.
Highlight the waterfront in PR.
Alert tenants about facade grant
Potential Tenants:
Concern about having customers with more disposable income.
Would prefer to own building.
Current environment cannot support leases that charge $25/sf, expect that in 5-10
years.
Need more residents living downtown.
6
Want the city to help to reduce the risk of having a business through more events and
organic foot traffic.
Tenants need to know the city's 1, 3 and 5 -year plan and city must commit to it.
Need a PR person from the city about the city.
Need a quantifiable plan on what's going to be built in downtown.
Need more city events and organic traffic to attract beach traffic.
Requirements for the city to live up to their promises.
THOUGHTS ON FUTURE INCENTIVES
Property Owners:
Property owner can participate in build -out in a % of partnership type lease. Usually
provide free rent as a concession and lease rate is $5-8/sf to start.
City could reduce city taxes, not have impact fees or sales tax on utilities to reduce
overhead.
Property owner supports program design with 3 -way partnership between
CRA/Property Owner/Tenant.
Vacant property deals can't be done with the landlord, tenant and the city, they don't
have the resources, the best they can do is a graduated lease.
Structure incentive so that first one in receives the most money.
When asked if there should be landlord participation in incentive plans, two said "Yes",
four said "Maybe" and two said "No."
Free rent during construction period, then graduated lease with lower price early on.
Most beneficial thing to do is attract people by incentivizing an attraction to locate here.
When asked if they would invest cast to get a brewery here they all agreed that it
depended on the tenant.
Have a program that is patterned after the original program with investment by the
tenant and city only.
Use $500K for first new restaurant with 30% to other applicants.
Potential Tenants:
City could pay rent for 5 years for tenant.
Tell property owners to find tenants and then they mitigate the risk in reduction of rent
or expenses. Under current system landlords reap all the rewards of the tenant taking
the risk.
Need a clear understanding of what the incentive funds can be used for.
7