05/09/1983Community Redevelopment Agency Meeting
May 9, 1983
The City Commission of the City of Clearwater met as the Community
Redevelopment Agency at City Hall, Monday, May 9, 1983. The meeting was
convened at 1:10 p.m. with the following members present:
Kathleen Kelly
William G. Justice
Rita Garvey
James L. Berfield
Absent:
James Calderbank
Also present were:
Anthony L. Shoemaker
Thomas A. Bustin
Lucille Williams
Mayor -Commissioner
Vice-Mayor/Commissioner
Commissioner
Commissioner
Commissioner
City Manager
City Attorney
City Clerk
By letter of May 4, 1983, addressed to the members of the City
Commission and the Community Redevelopment Agency this joint meeting was
called for Monday, May 9, 1983, at 1:00 p.m.
ITEM #2 - Approval of the Minutes.
Commissioner Garvey moved to approve the Community Redevelopment
Agency minutes of January 6, and February 17, 1983, as submitted by the
City Clerk. Motion was duly seconded and carried unanimously.
ITEM #3 - Discussion of the Downtown Development Project of J. K.
Financial Corporation.
David Healey, Planning Director, and Joe McFate, Community Development
Director, reviewed the history of the Redevelopment Agency. They reported
that in 1981, the central downtown business district was declared a
blighted area, a redevelopment agency was proposed, and the Clearwater
City Commission appointed as that Agency. Also in 1981, the City adopted
an ordinance which adopted the Redevelopment Plan for Downtown Clearwater
and approved street parking, utility and paid improvement and land
acquisition by the City and/or the Agency as a Community Redevelopment
Project. The plan included the redevelopment of the downtown retail office
core with funding sources which included private investment, tax increment
financing, general revenues, and industrial revenue bonds. The
Redevelopment Trust Fund was established to receive appropriated tax
increment funds. An early project of the plan included office retail
redevelopment within Block 31 and the development of a parking garage on
1. 5/9/83
Block 47. Pinellas County approved the Redevelopment Plan and
establishment of the Redevelopment Trust Fund.
The Agency then solicited proposals for the development of an office
and retail building on Blocks 28, 30 or 31 indicating it would consider
various financing proposals. This request for proposals complied with the
early action goals of the Redevelopment Plan. Proposals were received
in 1982 and the Agency authorized and directed the City Manager to
negotiate a development agreement with J. K. Financial Corporation for
the development of an office and retail building and a parking garage,
subject to further approval of the Agency.
A development agreement was negotiated with specific obligations for
each party. The City would declare as surplus and sell Parking Lot 9 and
air -rights over the lot and lease the remainder of the police parking lot
to the Agency, grant an easement for a pedestrian walkway over Park Street,
approve an inducement resolution for an Industrial Development Bond issue
to finance the office building and garage, and to upgrade the existing
sanitary sewer system serving the project site.
The Community Redevelopment Agency would purchase Lot 9 from the City
and sell it to the developer as well as the air -rights; sublease the
remainder of the lot to J. K. Financial Corp.and pay for the cost of
construction of the pedestrian walkway over Park Street; acquire the
Jannelli parcel through exercise of power of emminent domain, if necessary;
and sell to the developer for $650,000. All other costs of acquisition
would be paid by the Agency. J. K. Financial Corp. would be given an
option to lease 50 parking spaces in the lower half of the garage for 75%
of rental charge by J. K. Financial Corp. The Agency would also pay for
various appraisals, surveys, title insurance, and closing costs.
The developer, J. K. Financial Corporation, would purchase Lot 9 for
$140,000; purchase the air -rights for the assessed value, maximum $10,000;
construct a parking garage subject to reimbursement for the lower half;
construct a walkway over Park Street with costs being reimbursed by the
Agency; purchase the Jannelli land for $650,000, construct the project;
and agree not to sell the property without consent of the City or the
Agency.
The City Manager reported that Mr. Jannelli would sell the property
for $1.2 million or lease it under a long term lease for $110,000 per
year. He recommended the CRA support condemnation proceedings to ensure
the credibility of the City for development of the downtown area.
Ken Heretick, vice-president of J. K. Financial Corp., reported that
Mr. Jannelli had refused the appraised offer of $650,000 which included
the building which would be torn down. He stated an office retail
development would be a viable project in downtown Clearwater.
2. 5/9/83
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Commission questioned whether Mr. Jannelli had been approached and
expressed concerns on the cost of proceeding to condemnation. The cost
to the developer would remain at $650,000 regardless of the City's cost
if condemnation proceedings were started. Discussion also ensued on the
cost of the parking garage and the issuance of Industrial Development
Bonds.
The City Attorney recommended the agreement with J. K. Financial
Corp., be approved and negotiations with Mr. Jannelli be started.
Commissioner Garvey suggested an attorney with Eminent Domain
Proceeding expertise be hired if the City goes to condemnation
proceedings.
Charles Finton spoke in opposition to condemnation proceedings
because of the cost of a prior suit. He also felt the parking garage costs
were too high and that other property owners downtown would increase their
asking price if the City goes to condemnation.
Commissioner Berfield moved to continue the item until more
information is received on condemnation proceedings of other municipalities
and that further negotiations be started with Mr. Jannelli. lotion was
duly seconded and carried unanimously.
The City Manager stated that the City will benefit from the project
because it will improve the tax base. If there is no project, he felt
that downtown redevelopment would be on hold for the next few years.
Meeting adjourned at 2:28 p.m.
Attest:
yor/Commissioner
City Clerk
3. 5/9/83
/(o
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V1:rF.+�'R'IATT POIaTT ASSCCIATICN
CLEiliE Y iT'aLt, F?AO IDA
Yr. J. R. Stewart, City Manager,
City Hall,
Clearwater, Florida.
Dear sir:
The Venetian Point Association represents the
owners of 30 pieces of real property located on
Venetian Point, and is a corporation, not for
profit, under sections 617.01 and 617.10 Florida
Statutes Annotated. We are concerned, among other
things, with maintaining the beauty of Edgewater
Drive for the enjoyment of existing and future
generations.
This Association therefore respectfully requests
the opportunity to appear before the City Commission
at the December 7th meeting. At that time we
propose to ask the City Commission to reaffirm
their bulkhead line recommendation and make said
reaffirmation known to the Pinellas County Water
and Navigation Control Authority.
Very truly yours,
J.W
John S. Wiley,
Chairman,
Ad hoc committee
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AGENDA
COMMUNITY REDEVELOPMENT AGENCY (1 p.m.)
May 9, 1983
1. Call to Order.
2. Approval of Minutes 1/6/83 & 2/17/83.
3. Discussion and Review of Downtown
Development Project of J. K. Financial
Corporation.
4. Adjournment
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2,30
1. Date
*ACTION AGENDA*
1. 1:10 p.m.
2. Approved as submitted
3. Cont'd for additional information
on condemnation suits.
4. 2:28 p.m.
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