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10/29/2018Monday, October 29, 2018 9:00 AM City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 Council Chambers Community Redevelopment Agency Meeting Agenda October 29, 2018Community Redevelopment Agency Meeting Agenda 1. Call To Order 2. Approval of Minutes 2.1 Approve the minutes of the October 1, 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 Downtown Parking Study Presentation - Kimley Horn Consultants 4.2 Approve the extension of a lease agreement between the Community Redevelopment Agency (CRA) and Water’s Edge Commercial Group, LLC, a Florida Limited Liability Company, for the premises located at 331 Cleveland Street No. 2502, and authorize the appropriate officials to execute same. 4.3 Adopt the Community Redevelopment Agency (CRA) 18-month strategy that outlines the CRA’s work program from November 2018 through March 2020. 4.4 Approve a time limited, grant program for tenants in the Community Redevelopment Agency (CRA) area that have permitted or opened food/drink businesses operating on nights and weekends, that received a Certificate of Occupancy or were under active construction after January 1, 2018 and authorize the appropriate officials to execute same. 4.5 Approve a time-limited grant program for property owners to support the establishment of new food and drink businesses that are open on nights and weekends in the Downtown Core and Prospect Lake districts and authorize the appropriate officials to execute same. 4.6 Tiered Incentive Idea Discussion 5. Director's Report 5.1 Update on Holiday Extravaganza - Madai Gutierrez 6. Adjourn Page 2 City of Clearwater Printed on 10/25/2018 Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#18-5231 Agenda Date: 10/29/2018 Status: Agenda ReadyVersion: 1 File Type: MinutesIn Control: Community Redevelopment Agency Agenda Number: 2.1 SUBJECT/RECOMMENDATION: Approve the minutes of the October 1, 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 10/25/2018 Community Redevelopment Agency Meeting Minutes October 1, 2018 Page 1 City of Clearwater City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 Meeting Minutes Monday, October 1, 2018 9:00 AM Council Chambers Community Redevelopment Agency Draft Community Redevelopment Agency Meeting Minutes October 1, 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 – Micah Maxwell – Assistant City Manager, Pamela K. Akin – City Attorney, Rosem ar ie Call – City Clerk, Nicole Spra gue – Offic ial Re cord s and Le gis lati ve Ser vice s Coo rdin 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 9:03 a.m. at City Hall. 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. Trustee Caudell moved to approve the minutes of the September 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. Director's Report – Given. 4.1 Discuss 18-month action plan for the CRA. CRA Executive Director Amanda Thompson provided a PowerPoint presentation. In response to questions, Ms. Thompson said staff anticipates talking to developers about the available housing units in May 2019. The apartments to be constructed in Downtown will address the 24-7 Downtown resident. The marketing campaigns will target Draft Community Redevelopment Agency Meeting Minutes October 1, 2018 Page 3 City of Clearwater residents who feel disconnected from Downtown. The targeted social media and print campaigns aim to provide these individuals with experiences they will not have in their neighborhoods. She said staff will ask the Trustees to adopt the Strategy at the October 29 meeting. 4.2 Discuss Food and Drink Incentive Grant. CRA Executive Director Amanda Thompson provided a PowerPoint presentation and an overview of the comments received. In response to questions, Ms. Thompson said there is a perception that the City has a hard time completing its projects. The property owners, nor the tenants, want to bare the investment risk because of the low foot traffic and brand. The property owners want the City to bare the risk; they want the City to provide them the money for their tenants. She said some property owners may invest as the investment risk decreases. Tenants are unlikely to invest in this market unless they have the experience and financial resources, such as Clear Sky. Discussion ensued with support expressed for the revised incentive plan. It was suggested that consideration be given to implement a tiered rent subsidy program in which the property owner and tenant negotiate a price, with the CRA providing a percentage, and to lessen the timeframe for the loan forgiveness. Comments were made that when property owners invest and build a quality product, such as Clear Sky, the people of Clearwater will support it. Support was expressed for the proposed 5-year loan forgiveness program. In response to a concern, Ms. Thompson said as part of the marketing campaign, staff will be able to provide merchants a URL that will inform their customers of nearby available public parking. Results of the parking study will be presented to the Trustees on October 29. Trustee Caudell departed Chamber at 10:00 a.m. an d returned at 10:01 a.m. In response to questions, Ms. Thompson said the proposed plan requires property owners to identify what they are willing to invest and improvements that will stay with the building. The CRA's funds will go towards improvements that provide lasting public benefit and help Draft Community Redevelopment Agency Meeting Minutes October 1, 2018 Page 4 City of Clearwater implement the Downtown vision. As of August 28, the per square-footage rental rates in the Tampa Bay area are as follows: $10.47 in Clearwater, $32.20 in St. Petersburg and $19.03 in Tampa. There was no consensus to consider the tiered rent subsidy program. 5. Adjourn The meeting adjourned at 10:08 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#18-5288 Agenda Date: 10/29/2018 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.1 SUBJECT/RECOMMENDATION: Downtown Parking Study Presentation - Kimley Horn Consultants SUMMARY: Page 1 City of Clearwater Printed on 10/25/2018 Parking Facilities City / County Lot City/ County Garage Private Garage Private Lot LegendDistrict Outlines 3 Downtown Core QDowntown Gateway Old BayProspect Lake South Gateway Parking Facilities Surveyed in Downtown Redevelopment Area Zone Parking Inventory Address Type of Use Privately - Owned Parking Facilities 30 198 198 Seminole St Marina / Theater 31 53 118 N Fort Harrison Ave Office 32 145 100 N Fort Harrison Ave Commercial 33 178 122 N Garden Ave Commercial 34 66 15 N Garden Ave Commercial 35 113 500 N Osceola Ave Residential 36 30 300 N Osceola Ave Residential 37 61 601 Cleveland St Office 39 30 501 Bay Ave Chiller Plant 40 62 1130 Cleveland St Office 41 83 1150 Cleveland St Office 42 184 100 S Missouri Ave Office 43 156 100S Missouri Ave Office 44 271 1209 Cleveland St Retail 45 214 1255 Cleveland St School 46 140 1280 Cleveland St Office 47 171 619 S Ft Harrison Ave Commercial 4.8 76 715S Ft Harrison Ave, Bank 49 31 301 Pierce St Commercial 50 37 450 Pierce St Church 52 31 427 Laura St Restaurant 53 251 949 Cleveland St Residential 54 16 405 Cleveland St Commercial 55 86 416 Drew St Hotel 56 41 225 N Fort Harrison Ave Church 58 23 100 Pierce St Residential 59 583 645 Franklin St Bank 57 359 33 N Garden Ave Office City and County- Owned Parking Facilities 1 125 112 S Osceola Ave Library 2 168 300 Cleveland St Harborview Center 5 261 35 Watterson Ave Coachman 10 135 112 S Osceola Ave City Hall 11 42 150 Pierce St Downtown Boat Slips South 13 50 475 Oak Ave County Courthouse 14 20 100 Drew St Downtown Boat Slips North 15 76 220 Pierce St City Hall Overflow 17 28 3515 Fort Harrison Ave Public and Permit 19 52 311 S Osceola Ave Public 21 498 310 Court St. County Garage 22 120 315 Court St Pinellas County 23 42 620 Pierce St Office 29 48 420S Fort Harrison Ave County Courthouse 51 53 14 S. Fort Harrison County Building A 272 28 N Garden Ave Garden Ave Garage B 528 640 Pierce St Municipal Svcs Garage C 82 628 Cleveland St Station Square Garage PC 104 515 Park St County Employees Downtown Clearwater Parking Inventory 0 0. 2 Miles 0. 4 Document Path: K: \ FTL_ Parking \ 043573001 Clearwater Parking Study\ GIS\ MXD\ DowntownClearwaterParkinglnventoryV t0 Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#18-5245 Agenda Date: 10/29/2018 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.2 SUBJECT/RECOMMENDATION: Approve the extension of a lease agreement between the Community Redevelopment Agency (CRA) and Water’s Edge Commercial Group, LLC, a Florida Limited Liability Company, for the premises located at 331 Cleveland Street No. 2502, and authorize the appropriate officials to execute same. SUMMARY: The CRA began a lease with Water’s Edge Commercial Group, LLC on June 1, 2017 to use approximately 2,000 square feet of first-floor retail space located in the ground floor of Water’s Edge Condominiums as an Artist Workshop/Exhibit Space and public education space for Imagine Clearwater. The retail space, branded as Second Century Studios, has assisted in implementation of downtown redevelopment goals by providing increased cultural programming to generate foot traffic in downtown and engaging the public in the Imagine Clearwater plan. To date, the space has hosted Bazaar Art Collective, an arts installation, Plasti-Plast, by national artist Amy Landesburg, two Clearwater employee arts shows and most recently the Florida Center for Creative Photography. Second Century Studios will continue to play a key role in the CRA’s 18-month strategy by providing a space for public art programming, hosting targeted networking events for private investors and supporting “pop-up retail” businesses to increase opportunities for shopping in downtown. These activities support building a positive brand, attracting housing and encouraging private investment. Also, the studio fills a space on highly visible downtown corner that is difficult to lease due to the lack of guaranteed parking. Future activities in Second Century Studios include: ·Temporary installations by Seahorse Gallery, located on Clearwater Beach, featuring the art of Jim Warren and Dick Zimmerman as well as daily programs (October 13 -November 16, 2018) ·Holiday Vendor Market (November 17 - December 31, 2018) ·“Dreams of Dali”, a virtual reality exhibit, by The Dali Museum (January - June 2019) ·Pop up retail and art exhibitions (July-November 2019) ·Holiday Vendor Market (November - December 2019) The original lease agreement had a term of six months, with two six-month extensions, which is set to expire on November 1, 2018. The agreement had a monthly rental rate of $1,425.24 and the CRA was responsible for all utility and build out costs. The CRA wishes to extend the lease to a new end date of January 31, 2020 at the same rental rate and other terms of the Page 1 City of Clearwater Printed on 10/25/2018 File Number: ID#18-5245 agreement. After January 31, 2020, staff anticipates this retail space will return to use by the private market. APPROPRIATION CODE AND AMOUNT: Funding for this agreement is available in CRA project 94885, ULI Implementation. Page 2 City of Clearwater Printed on 10/25/2018 1 AMENDMENT TO LEASE AGREEMENT THIS AMENDMENT TO LEASE AGREEMENT (the “Amendment”) is made effective this _____ day of October, 2018, by and among the Water’s Edge Commercial Group, LLC,a Florida limited liability company (“Lessor”), having its principal place of business at 331 Cleveland Street, #2502, Clearwater, Florida 33755, and City of Clearwater Community Redevelopment Agency, a redevelopment agency established pursuant to law (“Lessee,” and together with the Lessor, the “parties”), having its principal place of business at 112 South Osceola Avenue, Clearwater, Florida 33756. W I T N E S S E T H: WHEREAS, Lessor and Lessee entered into a lease agreement (the “Lease”) dated June 1, 2018, whereby Lessor did lease to Lessee all of the premises addressed at 331 Cleveland Street No. C (a/k/a commercial space A), Clearwater, Florida 33755, all as more particularly described in Exhibit “A” attached to said Lease; and WHEREAS, the lease term (the “Lease Term”) as set forth in the Lease commenced on the June 1, 2017 and continued until November 30, 2017, with an option to renew the Lease for two additional six-motion terms; and, WHEREAS, the parties did, in fact, renew the Lease for two additional six-month terms such that the Lease Term continued until November 30, 2018; and, WHEREAS, the parties now mutually agree to amend said Lease solely with respect to the Lease Term and as otherwise provided below, and in no other manner whatsoever; NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1.Lease Term. The Lease is hereby amended, extending the Lease Term until January 31, 2020, so long as Lessee is not in default of any other terms and provisions of the Lease. 2.Lessor Recognition of Potential Artwork Display. Lessor recognizes that between January 1, 2019 and June 30, 2019 The Dali Museum may display certain artwork at the leased premises and hereby acquiesces to the use of the leased premises for this purpose during this time. 3.Remainder of Lease Unaffected. In all other respects, the remainder of the Lease shall remain in full force and effect. Any portion of the Lease that is inconsistent with this Amendment is hereby amended to be consistent. 2 4.Headings. The headings contained in this Amendment are for reference purposes only and shall not modify or affect this Amendment in any manner whatsoever. 5.Counterparts. This Amendment may be executed in counterparts, all of which together shall constitute one agreement binding on all the parties hereto. IN WITNESS WHEREOF, Lessor and Lessee have caused this Amendment to be duly executed on the day and year first written above. AS TO LESSOR:WATER’S EDGE COMMERCIAL GROUP, LLC By: Name: Title: AS TO LESSEE:CITY OF CLEARWATER COMMUNITY REDEVELOPMENT AGENCY (“CRA”) Countersigned: ____________________________________________________________ George N. Cretekos, CRA Chairperson Amanda Thompson, CRA Director Approved as to form:Attest: ___________________________________________________________ Michael Fuino, Assistant City Attorney Rosemarie Call, City Clerk Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#18-5246 Agenda Date: 10/29/2018 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.3 SUBJECT/RECOMMENDATION: Adopt the Community Redevelopment Agency (CRA) 18-month strategy that outlines the CRA’s work program from November 2018 through March 2020. SUMMARY: In early 2018, the CRA Trustees adopted a new Clearwater Downtown Redevelopment Plan which outlined a vision and goals to increase the attractiveness of downtown as a place to live, work and play. Within the Plan, Chapter 4: Plan Implementation contains four sections. The CRA section outlines the specific 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 projections for the CRA districts. The Incentives section provides information on available incentive programs for the downtown area as well as a framework for establishing new incentive programs. The Capital Improvement Program and Policy Implementation Projects section lists planned improvements and their costs for the entire downtown plan area as well as each character district. With the adoption of the 2018 Clearwater Downtown Redevelopment Plan, the CRA trustees established an operational framework and a capital improvements budget for the next 5-10 years. A recommended next step is to adopt a more detailed implementation strategy for the next 18 months to leverage existing city leadership that will be in place until March 2020 and focus on activities that will support sustainable economic development in downtown. The proposed 18-month strategy focuses on four objectives: ·Creating and sharing authentic, positive stories about Downtown Clearwater ·Beginning construction on Imagine Clearwater ·Permitting 600 housing units ·Attracting $100 million dollars of private investment Each objective includes a list of activities that will support meeting the objective and are aligned with the 2018 Downtown Plan. CRA staff will report on these objectives to the CRA Trustees monthly beginning in December 2018. APPROPRIATION CODE AND AMOUNT: Future CRA expenditures are identified and approved as part of the annual budgeting process. Page 1 City of Clearwater Printed on 10/25/2018 File Number: ID#18-5246 Page 2 City of Clearwater Printed on 10/25/2018 |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 10/8/2018 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. 10/8/2018 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 10/8/2018 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 10/8/2018 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 10/8/2018 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 10/8/2018 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 10/8/2018 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 •Targeted Pitches •Consider tenant incentives Completed Underway Planned •Land sale and acquisition •Retail developer pitch •Educational and cultural partnerships 10/8/2018 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." 10/8/2018 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 10/8/2018 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. 10/8/2018 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 10/8/2018 15 |15Downtown Clearwater –18-Month Plan |16CITY OF CLEARWATER Proposed CRA Strategy October 2018 -March 2020 Clearwater Community Redevelopment Agency 18-month Strategy November 2018 – March 2020 1 | P a g e Background In early 2018, the CRA Trustees adopted the 2018 Clearwater Downtown Redevelopment Plan which outlined a vision and goals to increase the attractiveness of downtown as a place to live, work and play. Within the Plan, Chapter 4: Plan Implementation contains four sections. The CRA section outlines the specific 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 projections for the CRA districts. The Incentives section provides information on available incentive programs for the downtown area as well as a framework for establishing new incentive programs. The Capital Improvement Program and Policy Implementation Projects section lists planned improvements and their costs for the entire downtown plan area as well as each character district. With the adoption of the 2018 Clearwater Downtown Redevelopment Plan, the CRA trustees established an operational framework and a capital improvements budget for the next 5-10 years. The next step is to adopt a more detailed implementation strategy for the next 18 months to leverage existing city leadership that will be in place until March 2020 and focus on activities that will support sustainable economic development in downtown. Creating Sustainable Change in Downtown The largest and most persistent barrier to the redevelopment of downtown Clearwater is a negative perception of the downtown and the city organization. This negative perception limits visitors to downtown and potential investment in downtown. The desired outcome of the 18-month strategy is to change the perceptions held by the public and investors about city government and downtown Clearwater to one that aligns with the 2018 adopted vision. The 2018 vision states, “Downtown Clearwater will thrive as the urban core and heart of the City, as the center of business and government, and as an attractive place to live, work, shop and play. A revitalized Downtown will be achieved through quality urban design, continued creation of a high quality public realm, and a dense and livable pattern which will strengthen the overall health of the City.” The CRA must focus on activities and investments that encourage others to participate in the implementation of the adopted vision for downtown. There are four steps to achieving 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 The 18-Month Strategy Step one is to commit to an 18-month strategy with a defined focus and measurable outcomes. The strategy will be in place from November 2018 – March 2020 and includes four objectives: Clearwater Community Redevelopment Agency 18-month Strategy November 2018 – March 2020 2 | P a g e 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 Each objective includes a list of implementation activities that are aligned with the 2018 Downtown Plan and will achieve the desired outcome of shifting perceptions of downtown and the city. Communicate the Strategy Step two is to communicate the strategy. The CRA will do this through its website www.downtownclearwater.com, monthly updates the CRA Trustee meetings, internal city department meetings, downtown events and the monthly e-newsletter. Implementing the Strategy Step three is to implement the strategy. This section lists the activities that accompany each of the four objectives. They are categorized as ongoing, underway as of October 1, 2018 and planned to finish by March 2020. Objective 1. Create and share authentic, positive stories about Downtown Clearwater Ongoing o Downtown Clearwater logo and website o Targeted events (e.g. the Dali tour) o New wayfinding signage Underway o Hiring for full- time PR person o Public art programs (Murals, Art Installations, Second Century Studios etc.) o Creating signature and everyday events (e.g. Holiday Extravaganza) Planned o Targeted social media campaigns o Dedicated development and permitting team o Designated CRA resource in city departments Clearwater Community Redevelopment Agency 18-month Strategy November 2018 – March 2020 3 | P a g e Objective 2. Begin construction on Imagine Clearwater Ongoing o Presented the 15% design to public and gathered feedback o Establishing a new location for City Hall o Early meetings with mixed-use developers and cultural anchor institutions Underway o Downtown parking study location recommendations for new parking and parking management o Council approves remaining Imagine Clearwater design o Demolition of Harborview Center in Spring 2019 Planned o Issue RFP's for redevelopment of city parcels o Secure new cultural anchor(s) for downtown o Imagine park construction commences Objective 3. Permit 600 housing units Ongoing o Utilizing the parking lot adjacent to The Nolen to support new restaurant/retail uses o Provide a safe environment through community policing Underway o Construction of Streetscape Phase III o Sustaining current businesses through marketing, special events and grant programs o Issue RFP for 115 MLK Jr Avenue warehouse site o Issue two RFPs for rental housing at 306 S. Washington and 1250 Cleveland Street Planned o Attract 4-7 new restaurants/bars through grant programs o Build Mercado/Market Festival Clearwater Community Redevelopment Agency 18-month Strategy November 2018 – March 2020 4 | P a g e o Market research and utility study to reduce barriers to building new housing and businesses o Housing developer event to showcase redevelopment opportunities o Pinellas Trail improvements Objective 4. Attract $100 million dollars of private investment Ongoing o New state opportunity investment fund o Updated zoning code o The Nolen and Apex 1100 rental and buildout ($44+ million) o Land acquisition for redevelopment Underway o Land sale and acquisition o Retail developer pitch o Educational and cultural partnerships Planned o Targeted pitches to residential and commercial investors o Consider tenant incentive program Results Step four is to track and publish results. The CRA staff will provide monthly reporting to CRA Trustees at their meetings beginning December 2018 and provide monthly e-newsletter updates through www.downtownclearwater.com. Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#18-5248 Agenda Date: 10/29/2018 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.4 SUBJECT/RECOMMENDATION: Approve a time limited, grant program for tenants in the Community Redevelopment Agency (CRA) area that have permitted or opened food/drink businesses operating on nights and weekends, that received a Certificate of Occupancy or were under active construction after January 1, 2018 and authorize the appropriate officials to execute same. SUMMARY: The Community Redevelopment Agency (CRA) is recommending approval of a time-limited Food and Drink Tenant grant program as part of the CRA’s 18-month strategy to share positive stories about downtown, attract new housing and encourage private investment into downtown. The CRA’s goal is to enhance downtown’s ability to serve as a restaurant destination and to serve existing employees/residents in downtown by providing more food and drink options that are open on nights and weekends. In August 2018, the CRA Trustees ended the Anchor Tenant Incentive program and directed CRA staff to work with tenants to develop solutions to that would support existing food and drink businesses that opened or began construction while the Anchor Tenant program existed, but due to a variety of factors were not eligible to participate in the Anchor Tenant program. From July to September 2018, CRA staff has held numerous individual meetings, two focus groups and conducted an online survey with existing food and drink tenants in downtown and potential tenants who have indicated they would consider establishing a business in downtown. Based on the feedback received, the proposed grant program is designed for current food and drink tenants, who are open on nights and weekends, that received a Certificate of Occupancy or were under active construction after January 1, 2018. Key elements of the grant program include: ·This is a one-time, limited grant opportunity for tenants. The application period will open from November 1- December 15. The CRA trustees will be asked to award grants in February 2019. ·The food and drink business must be open at a minimum from Wednesday - Saturday from 5:00pm to 10:00pm to be eligible for the grant. ·The business must be located within the CRA area. ·There is a distinction between full service restaurants and bars. ·Full service restaurants are eligible to be reimbursed for improvements made to the building for 35% of their costs up to $100,000. They must provide a legal and financial performance guarantee that they will remain in operations for 5 years. ·Bars are eligible to be reimbursed for improvements made to the building, fixtures and Page 1 City of Clearwater Printed on 10/25/2018 File Number: ID#18-5248 furnishings. All eligible expenses will be 100% reimbursed up to a $30,000 maximum. They must provide a legal guarantee that they will remain in operation for 2 years. The proposed grant program balances the legal requirements for the use of CRA funds, meets the goals of the downtown redevelopment plan and addresses the tenants’ primary concerns. It provides support to those businesses that have already invested in downtown this year and support for the completion of investment that are underway. APPROPRIATION CODE AND AMOUNT: Funding is available in the Opportunity Fund 388-94893. Page 2 City of Clearwater Printed on 10/25/2018 |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 10/8/2018 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 10/8/2018 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 10/8/2018 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 10/8/2018 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 10/8/2018 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 10/8/2018 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 10/8/2018 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 10/8/2018 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 10/8/2018 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 10/8/2018 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 10/8/2018 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 October 31 •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 October 31 •Eligible food/drink improvements •No property owner involvement •Submit receipts for improvements •Can receive a reimbursement grant up to $15,000 maximum 10/8/2018 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 10/8/2018 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 10/8/2018 15 |15CRA –Attracting New Food and Drink Experiences |16CITY OF CLEARWATER Attracting New Food and Drink Experiences CRA Work Session October 1, 2018 1 | P a g e A. Program Overview The Community Redevelopment Agency’s (CRA) Food and Drink Tenant Grant Program is a time limited opportunity for tenants to potentially receive support for investments they have made from January 1, 2018 through October 31, 2018 to properties within the CRA to establish food and/or drink businesses that are open on nights and weekends. The grant application period will open from November 1- December 15, 2018. Grants will be awarded in February 2019 by the CRA Trustees. The Food and Drink Grant 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 Tenant Grant Program’s main objectives are as follows: To provide limited financial support to tenants who meet the goals of the CRA’s redevelopment strategy for downtown but were not eligible to participate in the former Anchor Tenant incentive program. To sustain food and/or drink establishments that are open on nights and weekends in the CRA to promote Downtown’s ongoing revitalization as a dining destination. City of Clearwater Community Redevelopment Agency Food and Drink Business Tenant Grant Program City of Clearwater CRA | Food and Drink Tenant Grant Program 2 B. Program Eligibility and Activities Grant Activities: For the purposes of this grant program, the CRA will distinguish between full service restaurants and bars. Full service restaurants operate a kitchen that serves hot and cold food that is prepared within the same site as the customers being served. They may or may not serve alcohol. Bars serve alcoholic drinks and do not have a kitchen or have limited cooking equipment. Bars serve pre-prepared food or food that is prepared in a different location from where customers are served. The CRA will provide a grant to reimburse full service restaurants for eligible improvements made to the building for 35% of their costs, up to a maximum grant of $100,000. The grant will be structured as a five-year loan to grant. The applicant must provide a signed grant agreement and financial performance guarantee that they will stay in operation for a minimum of five years. The CRA will provide a grant to reimburse bars for improvements made to the building, new fixtures, new furnishings and signage for 100% of their costs, up to a maximum grant of $30,000. The applicant must sign a grant agreement committing to remaining an eligible business for two years after the grant agreement is signed. Grant awards exceeding $15,000 will be paid over two years to mitigate the risk of losing public funds in the event the tenant closes its business. For grant applicants that are under construction during the grant period, the grant funds will not be released until a Certificate of Occupancy has been obtained and the business must open by July 1, 2019. All grants require approval of the CRA Trustees. Grant Applicants: Eligible applicants are tenants who meet the following criteria: -Business is located in the CRA area. -Operate a business that serves food and/or drinks that is open a minimum of Wednesday through Saturdays from 5:00 pm to 10:00 pm on a weekly basis. -Received a Certificate of Occupancy to open their food/drink business between January 1, 2018 through October 31, 2018 OR -Pulled a construction permit after November 1, 2017 and are actively under construction to establish an eligible food/drink business. Eligible Improvements for all applicants: The general rule of thumb for building improvements that qualify 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: City of Clearwater CRA | Food and Drink Tenant Grant Program 3 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 Eligible Improvements for Bars ONLY: Furniture, fixtures, equipment and signage C. Grant Process: Applicants are required to submit a Tenant Food and Drink Grant Form to the CRA by December 15, 2018. CRA staff will review the grant form and confirm in writing if the applicant meets the eligibility requirements within 10 business days of submission to the CRA. CRA staff and the City Attorney’s office will prepare a grant recommendation for adoption by the CRA Trustees at their February 2019 meeting. The grant program form and timeline are available at www.downtownclearwater.com D. Grant Implementation: After the grant is awarded by the CRA Trustees: 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 additional 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. E. Next Steps If you are interested in learning more about the Food and Drink Tenant Grant Program, please visit downtownclearwater.com or contact Anne Fogarty France at anne.fogarty-france@myclearwater.com City of Clearwater CRA | Food and Drink Tenant Grant Program 4 Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#18-5249 Agenda Date: 10/29/2018 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.5 SUBJECT/RECOMMENDATION: Approve a time-limited grant program for property owners to support the establishment of new food and drink businesses that are open on nights and weekends in the Downtown Core and Prospect Lake districts and authorize the appropriate officials to execute same. SUMMARY: The Community Redevelopment Agency (CRA) is recommending approval of a Food and Drink Property Owner grant program as part of the CRA’s 18-month strategy to share positive stories about downtown, attract new housing and encourage private investment into downtown. The CRA’s goal is to enhance downtown’s ability to serve as a restaurant destination and to serve existing employees/residents in downtown by providing more food and drink options that are open on nights and weekends. There is a total grant budget of $1 million for all the food and drink grant programs combined. In August 2018, the CRA Trustees ended the Anchor Tenant Incentive program and directed CRA staff to work with property owners and tenants to develop solutions that would support the establishment of new food and drink businesses in downtown. From July to September 2018, CRA staff has held numerous individual meetings, focus groups and conducted an online survey with existing commercial property owners in downtown and potential tenants who have indicated they would consider establishing a business in downtown. Based on the feedback received, the proposed grant program sets up a partnership between the CRA and the commercial property owner to identify building improvements that will make their space “restaurant ready.” Key elements of the grant program include: ·There is a pre-qualification period from November 1 to December 1, 2018. During this time, the property owner submits a list of building improvements and the total cost of those improvements to the CRA for preliminary grant approval. ·The CRA will establish a preliminary grant approval amount that will provide for reimbursement of the owner’s building improvement expenses by 50% up to a maximum grant of $250,000. Rental subsidy is not an eligible grant expense. ·Once pre-qualified, property owners will have 60 days to find an eligible tenant and submit a full grant application. The tenant must be open, at a minimum, Wednesday - Saturday from 5pm-10pm. ·Pre-qualification will begin November 1, 2018, preliminary grant amounts will be established in December 2018 and property owners will have until March 1, 2019 to secure a tenant and submit a full application. Grants must be approved by the CRA Trustees and will be awarded on a first come, first served basis. Page 1 City of Clearwater Printed on 10/25/2018 File Number: ID#18-5249 The proposed grant program balances the legal requirements for the use of CRA funds, meets the goals of the downtown redevelopment plan and provides a partnership opportunity for property owners who wish to invest in their buildings to attract restaurants and bars. APPROPRIATION CODE AND AMOUNT: Funding is available in Opportunity Fund 388-94893 Page 2 City of Clearwater Printed on 10/25/2018 |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 10/8/2018 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 10/8/2018 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 10/8/2018 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 10/8/2018 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 10/8/2018 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 10/8/2018 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 10/8/2018 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 10/8/2018 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 10/8/2018 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 10/8/2018 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 10/8/2018 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 October 31 •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 October 31 •Eligible food/drink improvements •No property owner involvement •Submit receipts for improvements •Can receive a reimbursement grant up to $15,000 maximum 10/8/2018 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 10/8/2018 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 10/8/2018 15 |15CRA –Attracting New Food and Drink Experiences |16CITY OF CLEARWATER Attracting New Food and Drink Experiences CRA Work Session October 1, 2018 1 | P a g e A. Program Overview The Community Redevelopment Agency’s (CRA) Food and Drink Grant Program for Property Owners provides grant funding to commercial property owners to assist with building improvements. The goal of the program is to provide financial support 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 space is $250,000. This grant requires a partnership between the property owner 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 November 1, 2018 and will end May 1, 2019 or when the funding has been exhausted, whichever comes first. The Food and Drink Grant Program for Property Owners 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 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. City of Clearwater Community Redevelopment Agency Food and Drink Grant Program for Property Owners City of Clearwater CRA | Food and Drink Grant Program for Property Owners 2 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, Prospect Lake and the CRA’s portions of the Old Bay 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, at a minimum, to matching the CRA’s grant funding dollar for building improvements that will be maintained for a minimum of five years. They also must secure a tenant that is a food and/or drink business that is open on nights and weekends (at a minimum Wednesday through Saturday from 5:00 pm to 10:00 pm). An applicant may have begun construction, but grants will not be awarded to projects that have been completed prior to the CRA Trustee’s hearing to award the grant. 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 C. Grant Process: There are three phases to this grant program, Pre-Qualification for Owners, Full Application Submission and Review and Project Implementation. The grant program timeline is available at www.downtownclearwater.com. Pre-Qualification The pre-qualification period will be open from November 1 to November 30, 2018. Property Owners who wish to participate in this grant program must file a pre-qualification form no later than November 30, 2018. The purpose of the Pre-Qualification review is to ensure that property owners meet the minimum eligibility City of Clearwater CRA | Food and Drink Grant Program for Property Owners 3 requirements to participate in the grant program and to establish a tentative grant amount for each applicant. Each potential property owner applicant must submit the pre-qualification form for review and approval by the CRA Director prior to submitting a full grant application. CRA staff will review each submission and respond in writing within 10 business days of submission to confirm each applicant’s eligibility for the grant program and set a tentative grant amount. Full Application Submission and Review After a successful Pre-Qualification period, property owners may submit a full grant application for review. Full applications may be submitted between December 1, 2018 and March 1, 2019. Grant funds will be awarded on a first come, first served basis to eligible applicants. Applications will be heard by the CRA Trustees in the order they are received. Therefore, there is a possibility that full applications submitted later in the grant process will not have access to the full, tentative grant amount established during the pre-qualification phase or the grant funds will be exhausted. Full Application Process: 1. Applicants set up a meeting with CRA staff to review the full application requirements which includes a review of the proposed tenant's business concept and operating hours, eligible building improvement activities and a proposed scope of work and budget. 2. Property Owner submits a full application once they have secured a lease with an eligible tenant. 3. Application is reviewed within 15 business days of submission for completeness and accepted or returned with comments by the 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 and City Attorney according to the following criteria: Consistency with the goals of the Downtown Redevelopment Plan. Feasibility of the proposed scope of services and timeline. Ability to provide an experience that does not exist in Downtown presently. Ability to meet the legal and financial requirements of the grant program. 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 Project implementation begins after the grant is awarded by the CRA Trustees. 1. The CRA executes the grant agreement, which includes a payment schedule and project milestones. Submission of receipts, paid invoices and other appropriate documentation will be required for payment. CRA funding will be distributed once a Certificate of Occupancy has been issued. City of Clearwater CRA | Food and Drink Grant Program for Property Owners 4 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 final invoices for reimbursement. 4. Grantees will have one year to obtain a Certificate of Occupancy from the day the grant agreement is executed. 5. If a property owner has a change in tenant during the five-year grant period, the grant period will be extended by six months or until the property owner secures a new, eligible tenant, whichever time is less. D. Next Steps If you are interested in learning more about the Food and Drink Grant Program for Property Owners, please visit downtownclearwater.com or contact Anne Fogarty France at anne.fogarty-france@myclearwater.com Citizen Comment Card Name: Cot'/ Address: J.si' Glr v ( City: , w Y c= Zip: 3s; Telephone Number: 2'z % 7 /' S"27 7 Email Address: j si ° C 2'-2 ( 41.5Y- • C-R/'? Speaking under citizens to be heard re items not on the agenda? Agenda item(s) to which you wish to speak. - r C What is your position on the item? For Against Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#18-5289 Agenda Date: 10/29/2018 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.6 SUBJECT/RECOMMENDATION: Tiered Incentive Idea Discussion SUMMARY: Page 1 City of Clearwater Printed on 10/25/2018 Name: Citizen Comment Card C of- v V / _ Address: 3,3Y 7 City: Zip. 3S 7 Telephone Number: 72 7 7 Email Address: C% 2('i i-. fl Speaking under citizens to be heard re items not on the agenda? EJ Agenda item(s) to which you wish to speak I What is your position on the item? For Against eLA .( e Avid 1O/ 2-- a f ( g Assessing the current market conditions and demands for establishing new businesses in Downtown Clearwater 0102 The Trilateral Partnership 3 Party Initiative Working Together To Build A Thriving Community TENANTFood & beverage business operators seeking to expand to or establish a new location in Downtown Clearwater. COMMUNITY REDEVELOPMENT AGENCY ( CRA) The branch of local government responsible for incentivizing and overseeing the successful implementation of new incentive programs. 03 PROPERTY OWNER/ LANDLORD A Major Stakeholder with property available for lease. Program Snapshot The Dynamic Incentive is a loan to grant program offered by the CRA that can be adjusted based on prospect interest and overall market demand. The incentive is open to all food and beverage business operators seeking to establish a new business or expand to Downtown Clearwater. Incentives will be prioritized based on the highest proposed project budget in each tier. The Landlord and Tenant ( Grantee) are expected to make a 2. 5 year commitment Grants will burn off at a rate of 20% every 6 months for both the Tenant and Landlord. If the Landlord sells their property within the initial 2. 5 years, they will be liable and will reimbuse the CRA the balance of the grant received by the tenant. Landlords may supplement their contributions by increasing the Tenant Improvement Allowance TIA) or provide free rent for an extended lease period. Grantees will receive a percentage of a fixed minimum investment respective of each tier. All applicants will have 45 days to submit their applications to the Clearwater CRA for review. The CRA will review and approve applications 45 days after submittal. Stakeholder Contributions Property Owner CRA 100K $ 400K 75K $ 225K 50K25K0 In kind 100K25K10K 1. 3 Mil to ( 15) Future Tenants New Business Minimum Capital Investment Tenant600K525K400K225K9K 4. 2 Mil in Capital Investments Tier 1OVERVIEWClassification: Contributions Food & Beverage Tenant: $ 600K CRA: $ 400K Landlord: $ 100K Grant Limit 1 Recipient up to 50% of the minimum investment Qualifications: Existing Business Operator seeking to expand to Downtown Clearwater Lease Term: 10+ Years Approval Timeline: 90 Days New Business Minimum Capital Investment 1, 000, 000. 00 + Tier 2OVERVIEWClassification. Food & Beverage • ContributionsTenant: $ 525K • • CRA: $ 225K ** Landlord: $ 75K Grant Limit: 2 Recipients up to 40% of the minimum investment Qualifications: Existing Business Operator seeking to expand to Downtown Clearwater Lease Term: 10+ Years Approval Timeline: 90 Days New Business Minimum Capital Investment 1, 000, 000. 00 + 750, 000. 00 + Tier 3OVERVIEWClassification: Contributions Food & Beverage Tenant: $ 400k CRA: $ 100K Landlord: $ 50K Grant Limit: 3 Recipients up to 30% of the minimum investment Qualifications: Existing Business Operator seeking to expand to Downtown Clearwater Lease Term: 10+ Years Approval Timeline: 90 Days New Business Minimum Capital Investment 1, 000, 000. 00 + 750, 000. 00 + 500, 000. 00 + Tier 4OVERVIEWClassification: Contributions Food & Beverage Tenant: $ 225k CRA: $ 25K Landlord: $ 25K Grant Limit: 4 Recipients up to 20% of the minimum investment Qualifications: Existing Business Operator seeking to expand to Downtown Clearwater Lease Term: 10+ Years Approval Timeline: 90 Days New Business Minimum Capital Investment 1, 000, 000. 00 + 750, 000. 00 + 500, 000. 00 + 250, 000. 00 + Tier 5OVERVIEWClassification. Contributions Food & Beverage Tenant: $ 90k CRA: $ 10K Landlord: $ 0 Grant Limit: 5 Recipients up to 10% of the minimum investment Qualifications: Existing Business Operator seeking to expand to Downtown Clearwater Lease Term: 5+ Years Approval Timeline: 90 Days New Business Minimum Capital Investment 1, 000, 000. 00 + 750, 000. 00 + 500, 000. 00 + 250, 000. 00 + 100, 000. 00 + Property Owner 100K75K50K Stakeholder Contributions 400K225K100K 25K $ 25K 0 In kind 10K 1. 3 Mil to ( 15) Future Tenants New Business Minimum Capital Investment Tenant600K525K400K225K9K 4. 2 Mil in Capital Investments Property Owner Approvals FIRST NAME LAST NAME SIGNATURE rk Y C (' 4 r 7/ 47cS 2 I. C, L. 044., vit., f) t tel S 6? r 02,&" 7 X...- 7/— tj ii te 1, , i. o c b/ 5- 10 ` 3 go/ c % free Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#18-5274 Agenda Date: 10/29/2018 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 5.1 SUBJECT/RECOMMENDATION: Update on Holiday Extravaganza - Madai Gutierrez SUMMARY: APPROPRIATION CODE AND AMOUNT: USE OF RESERVE FUNDS: Page 1 City of Clearwater Printed on 10/25/2018