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09/04/2007 COMMUNITY REDEVELOPMENT AGENCY MEETING MINUTES CITY OF CLEARWATER September 4, 2007 Present: Frank Hibbard Chair/CRA Trustee Carlen Petersen CRA Trustee John Doran CRA Trustee George N. Cretekos CRA Trustee Paul Gibson CRA Trustee Also present: William B. Horne II City Manager Joe Roseto Interim Assistant City Manager Rod Irwin Assistant City Manager/CRA Executive Director Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Brenda Moses Board Reporter The Chair called the meeting to order at 1:32 p.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. 2- Approval of Minutes Trustee Petersen moved to approve the minutes of the Community Redevelopment Agency meeting of May 15, 2007, as recorded and submitted in written summation by the City motion carried Clerk to each Trustee. The was duly seconded and unanimously. 3 - Community Redevelopment Agency Items : 3.1 - Approve the Revised CRA Façade Improvement Program Guidelines that provide design assistance up to $3,000 and two financial incentives (1) up to $10,000 of matching grant funding and (2) up to $25,000 of zero interest loan funds per application and authorize the Executive Director to implement the program as described in the Façade Improvement Program Guidelines. In April 2005, the CRA (Community Redevelopment Agency) selected Wallis Murphey Boyington, Wilson Miller and Swan Development Advisors, as the Project Team to prepare a Façade Design Analysis for Cleveland Street. The analysis was funded by the DDB (Downtown Development Board). The analysis identified opportunities for façade improvements along Cleveland Street, from Osceola to Myrtle avenues, depicted illustrative concepts of façade improvements of selected buildings, and established a “vision” for building design and character for Cleveland Street, from Osceola to Myrtle avenues, that were reflective of Clearwater’s unique character. The analysis and report also made recommended changes to the CRA’s Façade Improvement Program. During the Project Team’s analysis, the consultants concluded that a “unifying concept” was necessary to further “focus” CRA efforts and provide the basis for allocation of resources in the program. This unifying concept for Cleveland Street is the new “Café District” approach, Community Redevelopment Agency 2007-09-04 1 which promotes a sidewalk café environment with its integration into the streetscape currently under construction along Cleveland Street. As background, the analysis contained Façade Improvement Program recommendations and provided for short and long-term benefits to property owners who intend to make improvements that will contribute to the “Café District”. These recommendations included: design assistance, grants and loans, covenants that assure businesses ongoing support and participation, sidewalk furniture, and amenities. On February 2, 2007, a Request for Qualifications (RFQ) for the development of Façade Improvement Program Guidelines was sent out and Swan Development Advisors. Inc., a national real estate consulting firm along with Market Knowledge, a national market analysis and business district revitalization specialist based in Wilmington, Delaware, were selected to develop the Façade Improvement Program Guidelines. Swan Development and Market Knowledge met with nine property and business owners on Cleveland Street in order to understand their interest in a façade improvement program and to identify their specific priorities. Further, the composition and condition of current businesses and storefronts were examined. The program recommendations are the result of this input and research, as well as experience in designing or reviewing other façade improvement programs nationally. The proposed Façade Improvement Program was developed by Swan Development Advisors and Market Knowledge in concert with City of Clearwater staff. This program is designed to establish several effective tools that will encourage and stimulate private investment primarily in buildings along Cleveland Street from Osceola to Myrtle avenues and two blocks north and south from Drew to Pierce streets (a.k.a. as the “Cleveland Street District”). These tools include architectural design assistance to be provided by the CRA and funded by the DDB via contracts with local architects and two financial incentives: 1) up to $10,000 of matching grant funding and 2) up to $25,000 of zero interest loan funds. For the architect design assistance, local architects will design the overall look and improvement options that may be appropriate for their buildings. The CRA will recruit and retain an assortment of local architects for continuing service and provide business or property owners with up to $3,000 of architectural design services. The financial incentives component will provide a two-tiered financial incentive program that will assist business and property owners to invest in the façades of their buildings to further the Café District concept. The incentives will be provided to property or business owners and property owners must endorse any application made by a business. Grants will be available up to $10,000 for storefront improvements. Loans will be provided for amounts between $10,001 - $35,000 at a loan interest rate of zero percent (0.00%), to be due on sale of property and secured by a mortgage on the property. All CRA funding will be matched dollar-for-dollar by the property or business. All funds would be used to further the goals of the Café District concept and must be applied to improvements that: a) Effect immediate improvement to the storefront area of the building including signage, lighting, entryways, windows and other cosmetic or structural work associated with the first floor where customers interact directly with the building, and b) Are in concert with first floor façade improvements as described in a) above but that also may extend vertically to the upper areas of the façade. Isolated building improvements that are not directly connected to improvements at the street level façade are not allowed. All funds are to be disbursed by the CRA on a reimbursement basis upon completion of the improvements and final inspections needed to satisfy permit requirements. Community Redevelopment Agency 2007-09-04 2 The goal is for this program to foster and encourage investment and pride in building facades in the “Cleveland Street District” and add to the Café District effect envisioned in a revitalized downtown Clearwater. The existing façade improvement program (the $5,000 matching grant program) will still be available to businesses and property owners in the CRA but outside the Cleveland Street District area. The next steps will be to release a RFP (Request for Proposals) for architectural design services, make changes to the existing Sidewalk Café Ordinance, and develop a Sidewalk Café Furniture Program that will be funded by the DDB. Bruce Lyon, of Swan Development Advisors, provided a PowerPoint presentation. He said the program will encourage and stimulate private investment in the Cleveland Street district and ancillary areas. He reviewed the program timeframes, implementation, and financial incentives. Discussion ensued with comments that downtown-generated CRA dollars, not ad valorem taxes, will fund this project. In response to questions, CRA Executive Director Rod Irwin said program participants must maintain improvements for at least five years. While grants and loans are limited to property owners, owners can permit tenants to make improvements. Cash matches will be required. Mr. Lyon recommended initial efforts remain in the core designated areas where streetscaping efforts have taken place. Mr. Irwin said the six-year plan will be reviewed annually with recommended changes presented to the CRA Trustees for consideration. Trustee Doran moved to approve the Revised CRA Façade Improvement Program Guidelines that provide design assistance up to $3,000 and two financial incentives: 1) up to $10,000 of matching grant funding, and 2) up to $25,000 of zero interest loan funds per motioncarried application. The was duly seconded and unanimously. 3.2 - Approve the Interlocal Agreement with the Downtown Development Board (DDB) to provide personnel, administrative and management responsibilities during Fiscal Year 2007/08 in the amount of $55,269 and refund the difference between the CRA tax increment fee of $158,948 and the management fee of $55,269. Florida Statute 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 $158,948, 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 FY (Fiscal Year) 1999/2000 to provide personnel, administrative and management responsibilities to the DDB, and to refund the difference between the increment payment and the management fee. This is the ninth 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 Community Redevelopment Agency 2007-09-04 3 projects and programs consistent with and in furtherance of 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. This year, downtown retail and restaurant recruitment programs, marketing and branding programs, and downtown events are the focus for CRA and DDB collaboration. The management of the DDB by CRA staff enables the CRA and DDB to utilize the public dollars more efficiently and provides support to the Main Street Program. The agreement also outlines the DDB’s commitment to financially support the construction debt service, operation and maintenance of the boat slips, docks, boardwalk, promenade and related facilities proposed to be constructed in the Downtown Waterfront. The DDB made its first contribution of $50,000 in April 2007. The intent of the DDB is to contribute up to $50,000 a year for 10 years, for a total not to exceed $500,000. The DDB shall pay the CRA $55,269 for the services agreed to in the Interlocal Agreement. The compensation shall be deducted from the tax increment payment of $158,948. The DDB approved the Interlocal Agreement at their meeting on August 15, 2007. In response to a question, Mr. Irwin said the DDB was established prior to the CRA by a special act of the legislature. The CRA provides redevelopment strategies and concentrates on bricks and mortar while the DDB assists downtown businesses regarding downtown business efforts. Trustee Cretekos moved to approve the Interlocal Agreement with the Downtown Development Board (DDB) to provide personnel, administrative and management responsibilities during Fiscal Year 2007/08 in the amount of $55,269 and refund the difference between the CRA tax increment fee of $158,948 and the management fee of $55,269. The motioncarried was duly seconded and unanimously. 3.3 - Adopt final budget amendments for the Community Redevelopment Agency for Fiscal Year 2006/07. Amendments reflect final proposed amendments to the Community Redevelopment Operating and the Capital Projects Funds for FY 2006/07. All expenditure activity reflected in the Capital Projects Fund is for the period ending June 30, 2007. Amendments to the Operating Budget: 1) Interest Earnings increased by $125,000 from $15,000 to $140,000 to recognized unanticipated interest earnings for the CRA Fund for FY 2006/07; 2) Advertising expenditures increased by $1,500 from $5,000 to $6,500 to offset unanticipated expenses related to the Cleveland Street and Prospect Lake Park Site RFP, etc.; and 3) Redevelopment Projects Fund Transfer Out increase of $123,500 from $500,171 to $623,671 to reflect a budget transfer to CRA project 388-94714, Downtown Redevelopment. Amendment to the Capital Projects Fund: Available balance for Downtown Redevelopment decrease from $1,799,796 to $1,780,196 to recognize additional funding available for redevelopment in the CRA operating budget. Community Redevelopment Agency 2007-09-04 4 Trustee Gibson moved to adopt final budget amendments for the Community Redevelopment Agency for FY 2006/07. The motion was duly seconded and carried unanimously. 3.4 - Approve the FY 2007/08 Community Redevelopment Aqency (CRA) budQet and adopt Resolution 07-01. The proposed FY 2007/08 CRA budget reflects preliminary Tax Increment revenue projections from the Property Appraiser. A final budget will be presented when final TIF (Tax Increment Financing) numbers are certified. Mr. Irwin said this $2.5 million reduction moves CRA project funds into a separate CRA account that lists fund balances. Jolley Trolley funding has been deleted. Some line item increases reflect a more aggressive focus on Cleveland Street marketing efforts. TIF revenues are anticipated to decline due to razed structures. Trustee Petersen moved to approve the proposed FY 2007/08 CRA budget reflects preliminary Tax Increment revenue projections from the Property Appraiser. The motion was duly seconded and carried unanimously. Resolution 07-01 was presented and read by title only. Trustee Doran moved to pass and adopt Resolution 07-01 and authorize the appropriate officials to execute same. The motion was duly seconded and upon roll call, the vote was: "Ayes": Doran, Petersen, Cretekos, Gibson, and Hibbard. "Nays": None. 4 . Other Business: - None. 5 . Adjourn The meeting adjourned at 2:26 p.m. -1~/ ~ ~r Community Redevelopment Agency City Community Redevelopment Agency 2007-09-04 5