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06/19/1986• *Corrected* • • Community Redevelopment Agency Meeting June 19, 1986 The City Commission of the City of Clearwater met as the Community Redevelopment Agency at City Hall, Thursday, June 19, 1986. The meeting was convened at 6:23 p.m. with the following members present: Kathleen Kelly *Lee Regulski James L. Berfield *Rita Garvey Don Winner Also present were: Anthony L. Shoemaker Milton A. Galbraith, Jr. Paula Harvey Cynthia Goudeau ITEM #2 - Minutes of June 5, 1986. Mayor -Commissioner Vice-Mayor/Commissioner Commissioner Commissioner Commissioner City Manager City Attorney Planning Director City Clerk Commissioner Garvey moved to approve the minutes of the meeting of June 5, 1986. Motion was duly seconded and carried unanimously. Item #3 - Purchase of Bilgore Property for $690,000. CRA staff has negotiated with the Bilgore Liquidating Trust to purchase the property bounded by East Avenue, Pierce Street, Myrtle Avenue and Park Street. It is recommended that this property be purchased for the sum of $690,000 ($9.47/square foot) payable $100,000 at closing and the balance at the end of three years. Interest on the unpaid balance would be paid semi-annually at the rate of 9% per annum and secured by a mortgage on the property. The purposes of acquisition are: 1. To provide future development opportunity in furtherance of the Downtown Redevelopment Plan. 2. To provide interim off-street parking if necessary. Funding for the purchase is proposed as follows: 1. $100,000 down payment be loaned to the agency by the City from the Special Development Fund, without interest and to be repaid upon subsequent sale of the property. 2. Annual interest, as required (maximum $56,050), to be paid from annual deposits into the Redevelopment Trust Fund. 3. The balance of the purchase price to be paid from the current bond issue of the agency, subsequent sale proceeds or other funds available to the agency. The proposed mortgage may be prepaid without penalty. The City Manager stated purchase of this property will be a benefit to redevelopment of Downtown and could be a revenue source on a short-term basis. 1. June 19, 1986 • • • • Upon request, Joe McFate, Planning and Urban Development Director, explained the funding used by the CRA stating the tax increment financing can be used for Downtown improvements, administration, Downtown redevelop- ment or payment of debt service on Downtown projects. The funds must be used by the end of each fiscal year or be returned or put toward payment of the debt service. A suggestion was made that the loan from the City Special Development Fund to the CRA be interest free, but once a reasonable amount of time has elapsed if the loan has not been paid back, the CRA pay the interest comparable to what the funds would have earned had they been left in the Special Development Fund which is in an interest bearing account. Discussion ensued regarding how much funding is available at this time and whether or not the $100,000 would be paid back at the end of the year. The $100,000 will be borrowed only if it is needed and would be paid back at the end of the year. The Commission has concerns regarding this being purchased for possible residential development and stated they are only doing it as a land banking measure. Discussion ensued regarding how much property would be taken off the tax roll and whether or not the City would be competing with private developers in the Downtown area. Concerns were also expressed regarding the need for other projects in Downtown, such as the Streetscape program, the tennis complex and questioned what the plans are for projects in the next 5 years. Further discussion regarding the debt service and whether or not there are sufficient funds to cover all the proposed expenditures of the CRA ensued. It was stated the CRA needs to establish priorities for its projects and the consensus was to do this at a future work session. William O'Malley, representing the Downtown Development Board, stated it was the overwhelming consensus of the Board to support the land banking effort. He stated land banking has a top priority for the Downtown Development Board over other projects. He feels the financial figures given by staff are conservative. Commissioner Garvey moved to approve the purchase. The motion was duly seconded. Upon the vote being taken: Commissioners Garvey, Winner and Regulski voted "aye". Commissioners Berfield and the Mayor voted "nay". Motion carried. The meeting adjourned at 7:18 p.m. yor/ ommissione 2. June 19, 1986 • COMMUNITY REDEVELOPMENT AGENCY AGENDA 1. Call to Order 2. Approval of Minutes of June 5, 1986 meeting. June 19, 1986 ACTION 1. 6:23 p.m. 2. Approved as submitted 3. Purchase of Bilgore Property 3. Approved purchase $690,000 (cont. from 6/5/86) 4. Adjourn. 4. 7:18 p.m.