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02/18/2020 Community Redevelopment Agency Meeting Minutes February 18, 2020 City of Clearwater Main Library- Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 m ap ® e Meeting Minutes Tuesday, February 18, 2020 9:00 AM Main Library - Council Chambers Community Redevelopment Agency Page 1 City of Clearwater Community Redevelopment Agency Meeting Minutes February 18, 2020 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 - Assistant City Manager, Pamela K. Akin — City Attorney, Rosemarie Call — City Clerk, Nicole Sprague — Deputy City Clerk 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 9:16 a.m. in Council Chambers at the Main Library. 2. Approval of Minutes 2.1 Approve the January 13, 2020 CRA Meeting Minutes as submitted in written summation by the City Clerk. Trustee Allbritton moved to approve the January 13, 2020 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 — None. 4. New Business Items 4.1 Amend the time limited CRA Food and Drink Grant Program for property owners to allow for reimbursement of grant expenses during construction. The CRA's goal is to enhance downtown's ability to serve as a restaurant destination and to provide existing employees/residents in downtown more food and drink options that are open on nights and weekends. In October 2018, the Community Redevelopment Agency (CRA) approved a time-limited grant program for property owners to support the establishment of Page 2 City of Clearwater Community Redevelopment Agency Meeting Minutes February 18, 2020 new food and drink businesses that are open on nights and weekends in the Downtown Core and Prospect Lake districts. The existing program requires applicants to fund all building improvements and finish construction prior to receiving grant funds. Currently, grants funds are released once the applicant has received a Certificate of Occupancy and submitted receipts verifying expenditures. CRA staff is recommending modifying the grant program to allow the applicant to be reimbursed for grant expenses after they have occurred, but prior to receiving a Certificate of Occupancy (CO). Ten percent of the total grant funds will be held until after a CO has been issued. Submission of receipts and/or paid invoices will still be required to receive reimbursement. This will allow applicants greater flexibility in financing large construction jobs. APPROPRIATION CODE AND AMOUNT: This program is funded through the Opportunity Fund 388-94893. In response to questions, CRA Executive Director Amanda Thompson said the grantee has signed a promissory note for the total cost, if the project does not get the certificate of occupancy, the grantee will have to pay the CRA all funds that have been reimbursed to them as part of the grant. Assistant City Attorney Michael Fuino said if the grantee is unable to pay, the CRA would sue on the promissory note. The grant program requires additional security of a personal guarantee by one of the LLC members. If the Trustees are not comfortable with each applicant's security, staff can renegotiate that. Trustee Cundiff moved to amend the time limited CRA Food and Drink Grant Program for property owners to allow for reimbursement of grant expenses during construction. The motion was duly seconded and carried unanimously. 4.2 Approve a Loan to Grant Agreement with 949 Cleveland Street, LLC for the property at 943 Cleveland Street, in the amount of$187,632.50, for building improvements to implement the CRA Food and Drink Grant Program and authorize the appropriate officials to execute same. At the October 29, 2018 Community Redevelopment Agency (CRA) meeting, the CRA Trustees approved a time limited, grant program for property owners to support the establishment of new food and drink businesses that are open on nights and weekends in the Downtown Core and Prospect Lake districts in the Community Redevelopment Agency area. Page 3 City of Clearwater Community Redevelopment Agency Meeting Minutes February 18, 2020 On November 2, 2018, 949 Cleveland Street LLC submitted a pre-qualification form with a list of building improvements for preliminary grant approval to convert the existing, unfinished ground floor commercial space into a finished space for use by food and drink tenants. Under this program, property owners must commit, at a minimum, to matching the CRA's grant funding, dollar for dollar, for building improvements that will be maintained for a minimum of five years. The owner must also maintain a lease with a business that serves food and/or drinks on nights and weekends for a minimum of five years. On September 30, 2019, 949 Cleveland Street LLC submitted a full application to establish a coffee and dessert shop that will serve hot and cold drinks along with a wide selection of desserts. The property owner has formed a new company, Cleveland Street Market, LLC, that will operate the business. The cafe will meet the grant required evening and weekend operating hours. Pending approval, the applicant anticipates beginning construction in February 2020 and completing in September 2020. A full list of building improvements, the lease and site plans are contained in the application. Of two bids, the lowest bid estimates a total project cost of$375,265.00 for eligible improvements. On October 24, 2019, the application was reviewed by an internal staff committee that included the CRA Director, Planning Director, Building Official and Assistant City Attorney according to the following criteria: • Consistency with the goals of the Downtown Redevelopment Plan. • Feasibility of the proposed scope of services and timeline. • Ability to provide an experience that does not exist in Downtown presently. • Ability to meet the legal and financial requirements of the grant program. The committee found that the application met the grant criteria and recommends approval of loan to grant in the amount of$187,632.50. This site is critical to serving existing residents and attracting new residents to apartment developments in this area, in turn, generating a favorable market to encourage new housing developments in the downtown core. The grant agreement incorporates the property owner's full application and financial documents to secure the loan to grant agreement over a five-year period. APPROPRIATION CODE AND AMOUNT: Funds are available in CRA project 3887552-94893, Opportunity Fund ($81,800.82) and CRA Project 3887552-94714 Downtown Redevelopment ($105,831.68). In response to questions, CRA Executive Director Amanda Thompson said the grantee will have three different stores, the property owner has several different arms in their development company. The owner will start businesses at their mixed-used property and hire someone who has expertise in a given area, such as a coffee shop, and other individuals to run the company. Ms. Thompson said the owner will eventually sell off the company or find a similar tenant. The increased foot traffic will make Page 4 City of Clearwater Community Redevelopment Agency Meeting Minutes February 18, 2020 the property more attractive to renters in the residential section, which will lead to increased rental rates. Since their commercial rental rate is currently zero, the project will establish comparison lease rates for the commercial market. She said there is plenty of raw commercial spaces in the Downtown's mixed use buildings because the current lease rates do not support building out the spaces, the incentive will help improve the market. Ms. Thompson said the proposed grant contemplates improvements to the building which will remain beyond the tenant. The grant funds will be provided on a reimbursement basis. If the tenant does not last for the 5-year term, the owner has 6 months to find a new food or drink tenant that is open on nights and weekends. The City Attorney said the original owners of the Nolen were given additional funds for the muck issue and $700,000 as an incentive to build the retail space,- the pace,the incentive funds were tied to the build-out of the retail space or lease of the space. Ms. Thompson said the grant program requires the owner to have a signed lease Concerns were expressed that there is already a self-serve wine bar in Downtown and an ice cream shop and that the owner would receive a lot of grant funds because three grant applications were submitted for the same property. Owner representative Matthew McWilliams provided a PowerPoint presentation. He said if the Trustees approve the request, the property owner will hire managers and staff for the three proposed businesses. In response to questions, Mr. McWilliams said the iPour will be one of the booths in the marketplace and will take a lot of the wall space. The space will have a shared kitchen for the beer and wine concept or other micro-market vendors. Ms. Thompson said one of the key goals of the grant program is to make these spaces occupiable by anything that is allowed by Downtown zoning. In response to a concern, Ms. Thompson said several buildings have shared services, such as bathrooms. The CRA budgeted for this grant program which has ended. Trustee Allbritton moved to approve a Loan to Grant Agreement with 949 Cleveland Street, LLC for the property at 943 Cleveland Street, in the amount of $187,632.50, for building improvements to implement the CRA Food and Drink Grant Program and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. Page 5 City of Clearwater Community Redevelopment Agency Meeting Minutes February 18, 2020 4.3 Approve a Loan to Grant Agreement with 949 Cleveland Street, LLC for the property at 1011 Cleveland Street, in the amount of$250,000, for building improvements to implement the CRA Food and Drink Grant Program and authorize the appropriate officials to execute same. At the October 29, 2018 Community Redevelopment Agency (CRA) meeting, the CRA Trustees approved a time limited, grant program for property owners to support the establishment of new food and drink businesses that are open on nights and weekends in the Downtown Core and Prospect Lake districts in the Community Redevelopment Agency area. On November 2, 2018, 949 Cleveland Street LLC submitted a pre-qualification form with a list of building improvements for preliminary grant approval to convert the existing, unfinished ground floor commercial space into a finished space for use by food and drink tenants. Under this program, property owners must commit, at a minimum, to matching the CRA's grant funding, dollar for dollar, for building improvements that will be maintained for a minimum of five years. The owner must also maintain a lease with a business that serves food and/or drinks on nights and weekends for a minimum of five years. On September 30, 2019, 949 Cleveland Street LLC submitted a full application to establish a self-serve beer and wine bar with indoor and outdoor lounge areas, including significant improvements to The Nolen's existing outdoor plaza and high-quality interior finishes. The property owner has formed a new company, Cleveland Street Market, LLC, that will operate the business. The bar will meet the grant required evening and weekend operating hours. Pending approval, the applicant anticipates beginning construction in February 2020 and completing in September 2020. A full list of building improvements, the lease and site plans are contained in the application. Of two bids, the lowest bid estimates a total project cost of$610,438.00 for eligible improvements. On October 24, 2019, the application was reviewed by an internal staff committee that included the CRA Director, Planning Director, Building Official and Assistant City Attorney according to the following criteria: • Consistency with the goals of the Downtown Redevelopment Plan. • Feasibility of the proposed scope of services and timeline. • Ability to provide an experience that does not exist in Downtown presently. • Ability to meet the legal and financial requirements of the grant program. The committee found that the application met the grant criteria and recommends approval of loan to grant in the amount of$250,000. This site is critical to serving existing residents and attracting new residents to apartment developments in this area, in turn, generating a favorable market to encourage new housing developments in the downtown core. The grant agreement incorporates the property owner's full application and financial documents to secure the loan to grant agreement over a five-year period. Page 6 City of Clearwater Community Redevelopment Agency Meeting Minutes February 18, 2020 APPROPRIATION CODE AND AMOUNT: Funds are available in CRA project 3887552-94893, Opportunity Fund ($250,000). Trustee Polglaze moved to approve a Loan to Grant Agreement with 949 Cleveland Street, LLC for the property at 1011 Cleveland Street, in the amount of$250,000, for building improvements to implement the CRA Food and Drink Grant Program and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4.4 Approve a Loan to Grant Agreement with 949 Cleveland Street, LLC for the properties at 1017, 1023 and 1029 Cleveland Street, in the amount of$250,000.00, for building improvements to implement the CRA Food and Drink Grant Program and authorize the appropriate officials to execute same. At the October 29, 2018 Community Redevelopment Agency (CRA) meeting, the CRA Trustees approved a time limited, grant program for property owners to support the establishment of new food and drink businesses that are open on nights and weekends in the Downtown Core and Prospect Lake districts in the Community Redevelopment Agency area. On November 2, 2018, 949 Cleveland Street LLC submitted a pre-qualification form with a list of building improvements for preliminary grant approval to convert the existing, unfinished ground floor commercial space into a finished space for use by food and drink tenants. Under this program, property owners must commit, at a minimum, to matching the CRA's grant funding, dollar for dollar, for building improvements that will be maintained for a minimum of five years. The owner must also maintain a lease with a business that serves food and/or drinks on nights and weekends for a minimum of five years. On September 30, 2019, 949 Cleveland Street LLC submitted a full application to establish a "micro" market, food hall concept that will provide space for up to 8 vendors. Each vendor will have access to individual electrical and plumbing hook-ups and a shared communal kitchen for preparation and storage of goods. Patrons will have access to the lounge areas in the adjacent self-serve beer/wine business. New restrooms will be constructed as part of this project. The property owner has formed a new company, Cleveland Street Market, LLC, that will operate the business. Each vendor will sub-lease space from the Cleveland Street Market LLC. The market will meet the grant required evening and weekend operating hours. Pending approval, the applicant anticipates beginning construction in February 2020 and completing in September 2020. A full list of building improvements, the lease and site plans are contained in the Page 7 City of Clearwater Community Redevelopment Agency Meeting Minutes February 18, 2020 application. Of two bids, the lowest bid estimates a total project cost of $570,655.48 for eligible improvements. On October 24, 2019, the application was reviewed by an internal staff committee that included the CRA Director, Planning Director, Building Official and Assistant City Attorney according to the following criteria: • Consistency with the goals of the Downtown Redevelopment Plan. • Feasibility of the proposed scope of services and timeline. • Ability to provide an experience that does not exist in Downtown presently. • Ability to meet the legal and financial requirements of the grant program. The committee found that the application met the grant criteria and recommends approval of loan to grant in the amount of$250,000.00. This site is critical to serving existing residents and attracting new residents to apartment developments in this area, in turn, generating a favorable market to encourage new housing developments in the downtown core. The grant agreement incorporates the property owner's full application and financial documents to secure the loan to grant agreement over a five-year period. APPROPRIATION CODE AND AMOUNT: Funds are available in CRA project 3887552-94893, Opportunity Fund ($250,000). CRA Executive Director Amanda Thompson said the Mercado will be a pavilion and not a permanent building structure. The micro-market concept is affordable space in the CRA that artists could rent. In response to questions, Ms. Thompson said the space would be affordable because it would not require an individual to rent out an entire space. Owner representative Matthew McWilliams said the drawings for the design development is in process, plumbing and electric has been contemplated for each space. There will be a shared kitchen for the vendors. A concern was expressed that the owner will receive half of the money needed to build out the space due to the multiple grant applications that were submitted. Trustee Cundiff moved to approve a Loan to Grant Agreement with 949 Cleveland Street, LLC for the properties at 1017, 1023 and 1029 Cleveland Street, in the amount of $250,000.00, for building improvements to implement the CRA Food and Drink Grant Program and authorize the appropriate officials to execute same. The motion was duly seconded and carried with the following vote: Page 8 City of Clearwater Community Redevelopment Agency Meeting Minutes February 18, 2020 Ayes: 4 - Trustee Cundiff, Trustee Hamilton, Trustee Allbritton and Trustee Polglaze Nays: 1 - Chair Cretekos 4.5 Approve a Business Lease Contract between the Clearwater Community Redevelopment Agency and the Clearwater Community Gardens, Inc. for a community garden at 1273 Grove Street, 1277 Grove Street and 20 North Betty Lane to establish a new lease for the community garden and authorize the appropriate officials to execute same. The purpose of this request is to enter into a lease with Clearwater Community Gardens, Inc for a period of one year with a one-year renewal period. The Clearwater Garden Club and the Clearwater Community Redevelopment Agency entered into a three-year lease in 2015 for a community garden in the Downtown Gateway neighborhood. The Clearwater Community Garden group established and has maintained the community garden on Grove Street since April 2015. The Clearwater Community Garden group has formed their own 501 c3, the Clearwater Community Gardens, Inc and requested to enter into a new lease with the CRA to serve as the lessee overseeing the community garden property Staff is recommending approval of the new lease for one year with a one-year renewal. In response to a question, CRA Executive Director Amanda Thompson said the lease includes a 30-day termination clause if the site is redeveloped. Trustee Hamilton moved to approve a Business Lease Contract between the Clearwater Community Redevelopment Agency and the Clearwater Community Gardens, Inc. for a community garden at 1273 Grove Street, 1277 Grove Street and 20 North Betty Lane to establish a new lease for the community garden and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4.6 Approve a fagade grant for 405 South Missouri Avenue in the amount of$76,375, accept the fagade preservation easement and authorize the appropriate officials to execute same. The Community Redevelopment Agency trustees approved amendments to the Fagade Improvement Grant program in April 2018. The amendments created a new scoring system and the potential for greater investment from the CRA to Page 9 City of Clearwater Community Redevelopment Agency Meeting Minutes February 18, 2020 incentivize renovation of commercial properties in downtown. Fagade improvements further the goal of the Downtown Redevelopment Plan to create a high-quality public realm. Eligible improvements are cosmetic and structural changes to the front wall of a building including brick restoration, lighting, entryways, windows, public art and signage that is attached to the fagade. Routine maintenance is not eligible for grant funding, nor improvements on facades that are not adjacent to the public right of way. All improvements must be compatible with the City's zoning and design regulations. 405 South Missouri Avenue is the former property of Buds Electric and Motor Services Inc. It was purchased by Joseph Clancy on October 31, 2018 to establish a new restaurant, Philly Joe's. The building is on the corner of South Missouri Avenue and Santa Rosa Street which makes two sides of the building eligible for grant funding. The owner has removed the stucco panels that covered the original brick building, reconfigured the building for restaurant usage, added a mural, and provided parking spaces with improved landscape, an outdoor dining and new signage. The owner has already expended $100,000 to remove stucco around the exterior of the building and added new doors and windows. The owner has requested a fagade grant to offset the costs of the remaining work including new exterior doors, windows, brick restoration, landscaping, artwork, and exterior lighting. The total cost of the additional exterior improvements is $152,750. The proposed project received 100 out of 100 total points as part of the grant application review process. This score is eligible for a 50% match of the total cost of the project for$76,375. In addition to matching the CRA's financial investment, the owner must grant a conservation easement to preserve and maintain the fagade for a minimum of five years. CRA staff recommends funding at the full 100% match and acceptance of the conservation easement. APPROPRIATION CODE AND AMOUNT: Funds are available in CRA capital improvement project 3887552-99979, Fagade Program for this grant. In response to questions, CRA Executive Director Amanda Thompson said downtown zoning does not require parking for commercial establishments. There is a surface parking lot that surrounds their patio and on-street parking on the side street. The tentative opening is scheduled within the next two weeks. Trustee Cundiff moved to approve a facade grant for 405 South Missouri Avenue in the amount of$76,375, accept the facade preservation easement and authorize the appropriate officials to Page 10 City of Clearwater Community Redevelopment Agency Meeting Minutes February 18, 2020 execute same. The motion was duly seconded and carried unanimously. 4.7 Discuss potential Letters of Interest for CRA-owned properties. CRA Executive Director Amanda Thompson provided a PowerPoint presentation. In response to questions, Ms. Thompson said an RFP in the CRA is limited to 30 days. A letter of interest may match what is included in an RFP, the City may ask for housing projects but receive responses for an art center. Staff may determine what the market is seeking based on the letters of interest received. She said the new downtown zoning allows many uses but the CRA must specify what is seeks. The CRA has the ability to sell property at a fair value and does not have to sell to the highest bidder. The CRA may extend the payment for land over time or take the proceeds from the sale back into the property, which is an additional source of funding. The 306 S. Washington Avenue site is located in an Opportunity Zone and is perfect for an investor with capital gains. Staff anticipates the community gardens at the 1250 Cleveland Street site would remain onsite but shift on rooftop terraces or hanging off the walls. There was consensus to move forward with the call for letter of interest. 5. Director's Report CRA Executive Director Amanda Thompson provided a PowerPoint presentation and presented a video of the 3-D tree wrapping projections. In response to questions, Ms. Thompson said staff will research the cost to own the projection equipment versus renting the equipment. Staff would come back with a recommendation. There was consensus for staff to move forward with determining if the projection equipment should be rented or owned. Page 11 City of Clearwater Community Redevelopment Agency 6. Adjourn Attest City Clerk tat: Meeting Minutes February 18, 2020 The meeting was adjourned at 10:36 a.m. geoittvelticof $;communitY m��Chair Redevelopment Agency Page 12 City of Clearwater