05/26/1989 (2)
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**REVISED**
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, AGENDA
,COMMUNITY REDEVElOPMENT'AGE~CY MEETING
FRIDAY, MAY 26, 1989 @ 10:30 A.M.
, MAYOR1S CONFERENCE ROOM
CITY HALL, CLEARWATER, FL
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1. Call to Order.
2.', Approval of Minute~ for March
10, 1989.
1.
2.
Approyed 'as submitted.
10:31 A.M.
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3: ,dl~ Busine~s:
Approval of contract with H &
", G Structures (DHgore Property),
4. New Bu~iri~ss: I,
A.' Conceptual' discussion
"regarding sale of
,Laura/Cleveland Street
parking lot ~o MAS ONE.
B., Discussion' regar.ding
status of Downtown
Developmen~ Board.
5. 'Adjournment
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3. Option'to purchase real estate
with H & G'Structures approved
as amended. '
4. A ~, ,Contract to be drawn up,'
,discussion to continue.
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S. Joint meeting between eRA
and DDS set ,for 9:30 A.M. June
13 I 1989.'
5.
12:41 P.M.
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COMMUNITY REDEVELOPMENT AGENCY MEETING
May 26, 1989
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The Community Redevelopment Agency (CRA) of' the City of Clearwater met at
City Hall, May ,26. 1989 at 10:31 A.M., with the following members present:
Rita Garvey
Lee Regulski
Don Winner
William Nunamaker
Richard Fitzgerald
Tyler Grady
Chairperson
Member
Member
Member
Member
Member ex officio
Also present were:
Ron H. Rabun
Michael J. Wright
leo'Schrader
Cynthia E. Goudeau
Executive Director
Assistant City Manager
Assistant City Attorney
Secretary
The Cha; rman of the Commun i ty Redevelopment Agency (eRA) ca 11 ed the meet i n9
(;:1\ to order and the fol'lowing items were discussed.
Item #2 Minutes
Member Winner moved to approve the minutes of the March 10,'1989 meeting.
Motion was duly secondp.d and carried unanimously.
Item #3 Approval of Contract with H & G Structures (BilQore Propertv)
City Staff has been negotiating with H & G Structures over the' past few
months for the sale of the tract known as the Bilgore Property. Leo Schrader,
Assistant City Attorney, reviewed the proposal stating ~hat it has been set up
as an option and provides the developer two (2) years to put the package
together. He stated that they will pay $25,000 for the first year option and
$25,000 for the second year opt ion. As s i gnment may be a 11 owed by :the CRA. There
is also a provision regarding the developer not being liable for 'increases in
impact fees.
In response to a question, it was reported that the purchasers have two
years to exercise their options and three years to complete the project.
Discussion ensued regarding the provisions of the agreement with concerns being
expressed regarding the purchaser's ability to assign the agreement to another
party, the fact that the City is accepting a' $290;000 loss on it's investment,
how to assure the City receives it's funds and that the project is completed.
Discussion als~ ensued regarding the provision that ,the City would deduct any
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increase in impact fees from the purchase price. Concerns were expressed that
this would 'increase the payback period to the City and that the City could not'
control other agencies' imposition of impact fees. The purchasers stated they
would agree to a time limit'or cap regarding the deduction of impact fees.
Based on the discussion and concerns expressed, Leo Schrader, Assistant
City Attorney, presented the following amendments to the agreement:
1) , On page one (1), paragraph B, add "prov i ded, however, the optionee
shall have no power to exercise this option until 25 condominium
units are pre-sold and 10% of the purchase price of each condominium
. unit is placed in escrow.II;,
2) On page one (1), paragraph C. strike IIwithout the prior written
consent of the optionor" wherever it appears in the paragraphj
3) On page five (5), paragraph 5 add "and closing shall mean the
delivery and transfer of legal title" i '
4) On page six (6), add Sec. 3.05 liThe obligation of Seller hereunder
to consummate the Closing contemplated hereby is subject to the
satisfaction, at the Closing, of each of the,following conditions
(any of which may be waived in whole or in part in writing by Seller
at or prior to the Closing):' ,
(a) Presales. Purchaser shall have entered into agreements
with consumers for the purchase of a minimum of fifty
(50%) percent of the Condominum Units to be constructed
on the Property, with each consumer having pa id ail
earnest money deposit, in escrow, of at least ten (10%)
percent of the ,purchase price for the respective unit.
(b) Approvals of Governmental Authorities. Purchaser shall
have secured the approva 1 s of a 11 federal, state, county
and municipal 'governmental authorities necessary for the
development ,of the Property contemplated hereby. '
(c) Escrow Aoreements. Purchaser shall have entered into
such Escrow Agreements as may be required hereby for the
escrow of Purchaser I s Earnest Money Depos it, Cert ; f i cate
of Deposit or Irrevocable Letter of Credit and the escrow
of the Earnest Money Deposits of condominium purc~asers; ,
which Escrow Agreements shall be upon terms mutually
acceptable to the parties hereto.
(d) Comp 1 i ance b v Purchaser. Purcha ser sh a 11 have performed,
observed and camp 1 i ed wi th a 11 the covenants, agreements
and conditions required by this Agreement to be
performed, observed and compl ied with by Purchaser prior
to or as of C10~ing.~ .
5) on page eight (8) , paragraph 4.13 insert "one year after the
execution of the optionlt after the words "becoming effectivelt and
add at the end of the paragraph, uprovid i ng however the total
deduction from the purchase price shall not exceed $20,OOOIt'; ,
6) On page nine (9) paragraph 5.01, Subparagraph 3 add, Itand any
construction 'undertaken on said property, shall be covered by a
performance bond with a copy thereof to be delivered to the sellerj
7) On page ten (10), paragraph 6.01, delete "without the prior writt~n
consent of the se11er" wherever it appears in the paragraph.
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\ ," Commi ss ioner Regu lsk i moved to approve the opt ion to purchase rea 1 estate
with H & G Structures as amended. The motion was duly seconded and carried
unanimously.
Item #4 New Business
~ Conceptual discussion regardino sale of Laura/Cleveland Street
parkino lot to MAS ONE.
t41\S ONE Limited Partnership ;s proposing to construct the Clearwater Towers
next to the First Florida Bank Building. MAS ONE Limited Partnership has been
negotiating to buy a portion of Clearwater1s' Parking Lot #8 in order to
faci litate t.he deve lopment of the Clearwater Tower Project. The current proposa 1
, includes the price, to be set at $102,275 which ;s less than the appraised price
of $139,000. They are requesting that the eRA construct a public park on the
south half of the parking lot with construction costs estimated at $300,000.
Once the park is constructed,. MAS ONE will maintain it. They are also requesting
additional security at the Garden Avenue parking garage.
Michael Wright, Assistant City Manager, provided information that the
proposed building is to be completed in 2 years, and will ,be at least equal in
value to the existing First Florida building. The current building is assessed
at $9.45 million, which generates almost $90,000 a year in eRA funds and $1,900
a year in general revenue funds. That equates to $450,000 over a 5 year period, .:
making the proposed eRA.contribution of $336,000 from the park construction and
t3':~4 reduced price, equal to less than a 4 year payback. The new building will
'f.t".. require the elimination of 68 publ,ic parking spaces that will be off-set by the
proposed 374 spaces to be built on site. The Garden Avenue parking garage
currently has 104 available spaces.
Bill Kravis, the owner of the adjacent parking lot to the east is aware
of the City plans, and voiced no objection at a recent meeting.
Michael Wright indicated the CRA would' need to buy the property from
the City, and there would be a loss of $10,000 a year to the parking fund.
Concerns were expressed regarding converting a portion of the parking lot
to a park costing the City $300,000 ,for construction. It was indicated that
MAS ONE is concerned as this is "their front yard" and they would 1 ike some input
as to its development. They would like it to remain as a passive park.
Concerns were also expressed regarding the CRA providing additional
security at the parking garage. The Assistant eity Manager indicated they would
draw up a contract and would continue to discuss the police protection issue.
He stated they would include that the price for development of the park would
not exceed $300,000 and that there would be language regarding it being a passive
use and a joint venture regarding the de~ign.
In response to a question he indicated it was hoped closing could be before
the 15th of October, '1989.
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Discussion reriardinQ status of Downtown Development Board.
,In the absence of further action by the City Commission, the Downtown
Deve~opment Board will cease to exist as of September 30, 1989. If there is a
desire to continue the Board's existence and taxing authority, decisions need
to be made within the next few weeks regarding an operating millage for the 1989-
,90 fiscal year. One mill of DDB taxing authority will generate between $135,000
to $145,000 in tax revenue. The CRA will receive about $800,000 of which
$460,000 must be spent on fixed cost including debt service. That leaves about
$340,000 available for other various projects including land acquisition,
advertising,' promotion and construction projects. This fund should increase
incrementally, as new buildings enter the tax rolls, but it will be at least 2
years before the impact of the two proposed projects are realized. In light of
the renewed revital ization effort reconsideration of the "sunset" of the Downtown
. Development Board is needed. Staff is suggesting a partnership between DDB and
the CRA whereby the eRA concentrates on matters leading to construction/and land
acquisition and,the DDB concentrate on promotion and public relations. It was
stated that the deadl ine for submi ss ion of millage rates to the Property
Appraiser is July 19, 1989. '
o i scus sian ,ensued regarding whether or not the DDB shou 1 d cont i nue in
existence and it was suggested that'a joint meeting with the Downtown Development
Board be established. Further discussion ensued regarding the 'need for the
Downtown Development Board and whether or not the taxing authority was an undue
burden,on the downtown property owners. It was the consensus of the eRA to set
a joint meeting with the Downtown Development Board for 9:30 A.M. on June 13,
1989.
In response to a question regarding the status of the Downtown Streetscape
Program, it was indicated that the project is slightly behind schedule, however,
part of this was due to the Department of Transportation prohibiting closure of
lanes earlier than 9:00 A.M. and later than 3:00 P.M. This time frame has been
expanded and the work should be going more quickly.
Item #5 - Adjournment.
, The meeting adjourned at 12:41 P.M.
Attest: '
~z. ~~._
Secretary
5/26/89
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