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07/15/2019 Community Redevelopment Agency Meeting Minutes July 15, 2019 City of Clearwater Main Library- Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 Meeting Minutes Monday, July 15, 2019 9:00 AM Main Library - Council Chambers Community Redevelopment Agency Page 1 City of Clearwater Community Redevelopment Agency Meeting Minutes July 15, 2019 Roll Call Present 5 - Chair George N. Cretekos, Trustee Bob Cundiff, Trustee Hoyt Hamilton, Trustee David Allbritton, and Trustee Jay Polglaze Also Present— William B. Horne 11 — City Manager, Micah Maxwell —Assistant City Manager, Michael Delk - Interim Assistant City Manager, Pamela K. Akin — City Attorney, Rosemarie Call — City Clerk, Nicole Sprague — Official Records and Legislative Services Coordinator and Amanda Thompson — CRA Executive Director To provide continuity for research, items are listed in agenda order although not necessarily discussed in that order. 1. Call to Order— Chair Cretekos The meeting was called to order at 9:08 a.m. in Council Chambers at the Main Library. 2. Approval of Minutes 2.1 Approve the June 3, 2019 CRA Meeting Minutes as submitted in written summation by the City Clerk. Trustee Allbritton moved to approve the June 3, 2019 CRA Meeting Minutes 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 Bill Jonson said he went to Venice and Bradenton. Venice is a vibrant city that recently completed a streetscape. He visited the Bradenton Riverwalk on Saturday and found that there were not a lot of people due to how large the area was, he noted there were several areas where you could sit and relax and play areas for children. He questioned how the Stantec contract, which will be discussed as part of the work session, will address the experiential objectives of the ULI study and HR&A project. 4. New Business Items Page 2 City of Clearwater Community Redevelopment Agency Meeting Minutes July 15, 2019 4.1 Amend the Loan to Grant Agreement with Fourcee LLC d/b/a Blackbrick Tavern and Kitchen at 432 Cleveland Street to extend the agreement through October 1, 2019 and authorize the appropriate officials to execute same. Black Brick Tavern will be a full-service bar and restaurant. They received a food and drink grant in February 2019 from the Community Redevelopment Agency with an anticipated opening date of July 1, 2019. Due to various construction challenges the opening date has been delayed. The grantee has requested that the grant agreement be amended to extend the opening date to October 1, 2019. Staff recommends approval of the extension. No other changes to the terms of the grant are proposed. In response to a question, CRA Executive Director Amanda Thompson said the delay was not caused by the City, the grantee requested additional time. Trustee Cundiff moved to amend the Loan to Grant Agreement with Fourcee LLC d/b/a Blackbrick Tavern and Kitchen at 432 Cleveland Street to extend the agreement through October 1, 2019 and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4.2 Authorize the CRA Executive Director to prepare an agreement for the development and sale of the property at 115 South Martin Luther King Jr. Avenue and the adjoining vacant lot for the purposes identified in RFP 09-19. The CRA issued Request for Proposal (RFP) 09-19 in November 2018 to select a qualified applicant for the acquisition and development of the property located at 115 South Martin Luther King (MLK) Jr. Avenue and adjoining vacant lot that sits on the NW corner of South Washington and Pierce Street as a restaurant, microbrewery/winery, or similar use or attraction that is open nights and weekends. This is a 1+/- acre site located downtown in the Prospect Lake Character District. The Downtown Redevelopment Plan encourages the redevelopment of the building as a microbrewery/winery and/or restaurant to help activate the area and to provide entertainment and gathering spaces for visitors and residents expected with the addition of two residential projects that are Page 3 City of Clearwater Community Redevelopment Agency Meeting Minutes July 15, 2019 within walking distance for this area. Proposers were asked to address the following objectives in their response: • Reuse of the existing warehouse structure or a proposal for a new building that meets the Downtown Design Guidelines • Preservation of existing healthy trees and greenspace to the maximum extent possible for use as an outdoor dining facility and neighborhood amenity • A business use that addresses one or more of the current gaps in downtown's restaurant/retail market that lacks brewpubs, microbreweries, winery, small scale music/arts venues, and full-service restaurants that are open on nights and weekends • Can support a weekly schedule of programs like yoga, live music, maker markets, etc. • Utilizes or reconfigures the existing parking on site and works towards a shared parking agreement with adjacent parking sites • Updated streetscape and bike/pedestrian amenities • Illustrates an understanding of how to attract Clearwater residents and visitors from Clearwater Beach to this destination • Creates a destination worthy brand for downtown Clearwater The RFP received one response, from Hop Daddy, LLC, to open a micro-brewery with an adjoining beer garden. The reviewing committee agreed that the proposal met the minimum qualifications and that the CRA Executive Director should work with the applicant to further develop the proposal. Since the application was reviewed in February 2019, CRA staff has worked with the applicant to develop a proposal that fulfills the goals of the Downtown Redevelopment Plan. Staff recommends that the Trustees authorize the CRA Executive Director to prepare an agreement for the development and sale of the property for the purposes identified in RFP 09-19. APPROPRIATION CODE AND AMOUNT: The CRA has funding in Downtown Redevelopment, Fagade Improvements and Streetscape Improvements project funds. Specific funding amounts and funds will be identified as part of the final development agreement. HopDaddy Brewery President/CEO Bryan Borosky and Co-founder Jeff Moran provided a PowerPoint presentation. In response to questions, CRA Executive Director Amanda Thompson said early last year the CRA approved a land exchange for the Page 4 City of Clearwater Community Redevelopment Agency Meeting Minutes July 15, 2019 multi-space parking lot adjacent to the Nolen, which will be available to HopDaddy Brewery for their immediate parking needs. Staff will be working with the developers of the redevelopment property to the south to build additional public parking. HopDaddy would purchase the property from the CRA for$600,000; the CRA would provide HopDaddy$500,000. She said the CRA is acting as the lender, requiring the applicant to pay the purchase price over ten years. Ms. Thompson said all CRA funds are limited to the exterior building improvements and site improvements. If the business fails to open in 18 months, the property reverts back to the CRA. Should the business close during the agreement, the CRA will hold title on the property. Trustee Hamilton moved to authorize the CRA Executive Director to prepare an agreement for the development and sale of the property at 115 South Martin Luther King Jr. Avenue and the adjoining vacant lot for the purposes identified in RFP 09-19. The motion was duly seconded and carried unanimously. 4.3 Approve a grant agreement with 1100 Cleveland, LLC, in the amount of$400,000, for street view improvements as part of the 1100 APEX mixed use development and authorize the appropriate officials to execute same. APEX 1100 is a mixed use building currently under construction at 1100 Cleveland Street. The site is located within the Clearwater Downtown Redevelopment Plan (CDRP) area in the Prospect Lake Character District. Glenstar Properties purchased the property in late 2016 after the building sat vacant in a blighted condition since 2009. 1100 Cleveland LLC applied for a building permit on August 30, 2017 for the adaptive reuse of a 15-story mixed-use redevelopment project including 134 residential apartment units, 202-space parking garage, approximately 5,000 square feet of commercial/restaurant/retail space and amenities such as a heated pool, 24-hour fitness room, a chef's kitchen and various amenities for pets. The Developer has requested an incentive in the amount of$400,000 in the form of a grant to assist with the cost of aesthetically enhancing the first-floor fagade of the building. These improvements will add to the pedestrian experience in the public realm via enhanced treatment of the low-rise stucco around the building's perimeter, landscaping on the North, South and West side, sidewalk pavers for right-of-way improvements on Cleveland Street and Martin Luther King Jr. Avenue, signage, railings for the commercial facades, awnings, and a living wall at the parking deck Page 5 City of Clearwater Community Redevelopment Agency Meeting Minutes July 15, 2019 ramp. The total costs of these improvements are estimated at $470,456. The Developer has secured two restaurant leases for the ground floor commercial space contingent on the Developer providing $400,000 to the tenants for interior buildout for the restaurants. The restaurants are Billy Brick's Pizza and Egg Jam Cafe. The CRA incentive funds will allow the Developer to construct higher quality exterior improvements, beyond minimum code requirements, to secure the restaurant leases and create an attractive outdoor dining environment. The 1100 Apex project 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. Objective 1G: Continue to utilize a variety of incentives to encourage the construction of new residential uses to locate Downtown. Accessibility Goal (page 46) - Downtown will have a connected network with mobility choices. Objective 28: Strengthen Cleveland Street, Osceola and Ft. Harrison Avenues as local, pedestrian oriented streets. Identify other local streets to be reinvigorated with active ground floor uses. 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. As part of the 1100 Apex mixed use redevelopment, the enhanced first floor building treatment and right-of-way improvements will aesthetically improve the area, add to the pedestrian experience and provide a connection between the existing Cleveland Street Streetscape, the Page 6 City of Clearwater Community Redevelopment Agency Meeting Minutes July 15, 2019 Downtown Core Character District and the transition to the Prospect Lake Character District. Providing pedestrian friendly amenities and supporting restaurants uses are critical to retaining and attracting residents as well as encouraging new housing development, a primary focus area of the CRA's 18-month strategy. The 2018 CDRP contains an adopted evaluation framework for all incentive requests and the 1100 Apex project meets the criteria set forth in the plan. It is compliant with federal, state and local laws, it is aligned with the Vision and Goals of the 2018 Downtown Redevelopment Plan, the project has been attempted to by two previous developers without an incentive, the return on investment will be seen by the surrounding merchants who have goods and services that the residents of these apartments will use, the residents will add to the vibrancy of the area and attend events and activities that are held in the downtown and lastly, the public infrastructure and utilities have already been upgraded to support the proposed use. The majority of the CRA's annual funding is allocated to capital improvement projects and existing grant programs. Staff recommends approval of this grant in an amount not to exceed $400,000. There are funds available in the Downtown Redevelopment Fund for this grant. APPROPRIATION CODE AND AMOUNT: Funds are available in CRA capital improvement project, 94714, Downtown Redevelopment. Developer Larry Debb said the 1100 Cleveland project is within a month of occupancy, 15 leases have been signed to date. Since the item was originally presented to the CRA, the following changes have occurred: 1) the tenant amenity requirements have increased dramatically, requiring an outdoor theater, putting green, billiards table, grill, hot tub, pool and interior health club, yoga room, fitness on demand room, free office space, conference room facilities, indoor theater, dog washing facility, dog walking area and gourmet kitchen for tenant use, and 2) the two retail spaces, an Italian restaurant and a bakery, have required additional upgrades that include additional lighting, pavers, furniture, landscaping and new storefronts. Page 7 City of Clearwater Community Redevelopment Agency Meeting Minutes July 15, 2019 In response to a question, Mr. Debb said the proposed bakery will be approximately 1,000 sq. ft. and the restaurant will be approximately 3,000 sq. ft. CRA Executive Director Amanda Thompson said there has been a huge labor shortage in construction, which have impacted the cost of materials and the project's original timeline. If the request is not approved, the applicant will only be able to complete the project to meet minimum city code standards. She said the grant funds would allow the applicant to provide a higher level of quality in the streetscape and the first floor building fagade. All CRA funds will be used for outdoor improvements. One individual spoke in opposition. In response to a concern, it was stated that the CRA's objective is to enhance its defined area by reinvesting tax dollars from that area into that area. In response to a question, Ms. Thompson said staff will be issuing two Request for Proposals for tax credit housing projects for low to moderate income and mixed income rental apartments. Unlike most communities, Clearwater lacks market rate rental housing projects. she said the Nolen is the only market rate project in the CRA. Trustee Polglaze moved to approve a grant agreement with 1100 Cleveland, LLC, in the amount of$400,000, for street view improvements as part of the 1100 APEX mixed use development and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4.4 Amend the Loan to Grant Agreement with Tequilas Mexican Grill and Cantina LLC at 422 Cleveland Street to extend the agreement through October 1, 2019 and authorize the appropriate officials to execute same. Tequilas Mexican Grill and Cantina will be a full-service bar and restaurant. They received a food and drink grant in February 2019 from the Community Redevelopment Agency with an anticipated opening date of July 1, 2019. Due to various construction challenges the opening date has been delayed. The grantee has requested that the grant agreement be amended to extend the opening date to October 1, 2019. Staff recommends approval of the extension. No other changes to the terms of the grant are proposed. Page 8 City of Clearwater Community Redevelopment Agency Meeting Minutes July 15, 2019 Trustee Cundiff moved to Amend the Loan to Grant Agreement with Tequilas Mexican Grill and Cantina LLC at 422 Cleveland Street to extend the agreement through October 1, 2019 and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 5. Director's Report Executive Director Amanda Thompson said the Downtown is an opportunity zone and highlighted in the Invest Tampa Bay industry book and requested those interested in investing in Downtown to contact her. She encouraged those interested in the CRA's food and tenant grant program to visit Downtown Clearwater.com for information. The Dreams of Dali exhibition closed on June 30, over 4,200 individuals visited the exhibition over 6 months. Staff is working with USF's 3D Open Access Lab to develop augmented reality applications for the murals throughout Downtown. 6. Adjourn The meeting adjourned at 9:49 a.m. Chair Attest Community Redevelopment Agency City Clerk Page 9 City of Clearwater