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03/16/2020 Community Redevelopment Agency Meeting Minutes March 16, 2020 City of Clearwater Main Library- Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 e Meeting Minutes Monday, March 16, 2020 9:00 AM Main Library - Council Chambers Community Redevelopment Agency Page 1 City of Clearwater Community Redevelopment Agency Meeting Minutes March 16, 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 9:11 a.m. in Council Chambers at the Main Library. 2. Approval of Minutes 2.1 Approve the February 18, 2020 CRA Meeting Minutes as submitted in written summation by the City Clerk. Trustee Allbritton moved to approve the February 18, 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 Clearwater Community Redevelopment Agency's rules and regulations. The Clearwater Community Redevelopment Agency was established as an independent division within the City of Clearwater in 2016. It was formerly located in the Economic Development and Housing division. In response to this reorganization and recent changes in state legislation governing CRA's, revised rules and regulations have been prepared for adoption. New language has been added to recognize required ethics training for CRA trustees, establish new Page 2 City of Clearwater Community Redevelopment Agency Meeting Minutes March 16, 2020 purchasing procedures, financial reporting requirements and allowable expenditures. The updated rules establish a process for disposition of CRA owned properties and policies for the execution of documents and resolutions. The proposed rules will establish by adoption, what the CRA has followed in practice. The rules follow state and county CRA reporting requirements. In response to questions, Assistant City Attorney Michael Fuino said the annual report deadline is set by Florida Statutes. Staff should already be working on this year's report. CRA Executive Director Amanda Thompson said the CRA does the audit at the same time as the City's. The annual report has already been completed and includes last year's audit. She said Pinellas County has adopted a new reporting framework this year that includes different performance measures. Trustee Polglaze moved to amend the Clearwater Community Redevelopment Agency's rules and regulations. The motion was duly seconded and carried unanimously. 4.2 Authorize the CRA Director to develop a grant agreement in the amount of$500,000 to incentivize the construction of new rental housing as part of a mixed-use development at 708 Chestnut Street. The CRA received an incentive request from Chestnut and Myrtle, LLC for $750,000 to renovate an existing blighted building at 708 Chestnut Street to create a mixed-use development with 5,425 square feet of commercial space and up to 17 apartment units. The applicant has completed a preliminary zoning and permit review process but has not received a building permit. The proposed project would result in a significant renovation of a dilapidated building on a highly visible corner in downtown. It is a textbook example of a project that can take advantage of the downtown Opportunity Zone tax credits program. The construction of new rental housing is a high priority in the downtown plan and CRA strategy. The proposed project meets several policies and objectives in the 2018 Clearwater Downtown Redevelopment Plan including: Policy 18: The design of all projects in Downtown shall incorporate pedestrian-scale elements that create and maintain an inviting pedestrian environment Policy 5: Buildings and developments should be people oriented Policy 6: Support shared parking for mixed uses Objective 4A: Encourage redevelopment that contains a variety of building forms and styles Objective 1 F: Allow for a variety of residential densities and housing types to provide for a range of affordability and mix of incomes consistent with the Page 3 City of Clearwater Community Redevelopment Agency Meeting Minutes March 16, 2020 Character Districts Objective 1 G: Continue to utilize a variety of incentives to encourage the construction of new residential uses to locate Downtown The current economy does not support the construction of new housing without public subsidy. Increased downtown residents are critical to supporting local businesses and providing additional foot traffic on nights and weekends. Without this incentive, the applicant will renovate the existing commercial space and may construct up to 4 housing units. Based on available funding, an incentive of$500,000 is recommended. Staff is seeking authorization for the CRA Director to develop a grant agreement to bring to the Trustees for approval that would include the final number of housing units, a project timeline, a payment schedule and other items pertaining to the management of the grant. APPROPRIATION CODE AND AMOUNT: Funds are available in the Downtown Redevelopment fund 388-94714 for this grant. Applicants Ray Cassano and Shahab Emarni reviewed the mixed use commercial development project. Mr. Cassano said the project will spread beyond Cleveland Street and will ignite more development in the area. The requested incentive would allow for a third floor on the property or help buy the out parcel, which is currently for sale, for additional parking. It will take approximately$3 million to renovate the building and add 14 apartments, 4 stores, and 17 parking spaces in Downtown. In its current state, the building is un-occupiable. Mr. Cassano said the land was purchased in cash and a $750,000-loan from Valley Bank has been obtained, which can be upgraded to $1 million. If the incentive is not approved, the building may be blocked out for a one-person tenant, which would not benefit Downtown as much. He said he has a tenant willing to use the space as is and they will build out the interior. In response to questions, Mr. Cassano said the apartments will not be expensive to rent, will not be subsidized rentals nor high-market rentals. CRA Executive Director Amanda Thompson said since the applicants are not a housing authority, a target, such as 70% AMI, has not been set. The rates discussed with staff will be slightly less than the Nolen Apartments, contingent on the final construction costs. Since there are no amenities and the units will be smaller, the proposed apartments will be less expensive the Nolen or Apex 1100. She said the Trustees could set an AMI; workforce housing is set at 80-120% AMI. Mr. Cassano said the 17 parking spaces will be available for retail during the day since most of the Page 4 City of Clearwater Community Redevelopment Agency Meeting Minutes March 16, 2020 apartment tenants will be gone during the day. He said the total cost for the building renovations will be $3.6 million. Ms. Thompson said if the Trustees are not supportive of encumbering this amount of money and the project's concept, staff will not initiate going into the details, such as funding sources and project timelines. The applicants do not have tenants for the retail spaces; if the incentive is not provided, they will create a shell space for a potential medical office tenant. She said the CRA is interested in the housing proposal. Ms. Thompson said she thinks it's possible to get a shared parking agreement with Walgreens; parking for retail will not be needed at night. The project site is extremely close to public transit and to the Pinellas Trail. The City's zoning ordinance for commercial uses does not require parking. Mr. Cassano said the smallest unit will be a 650-sq. ft. studio and the largest unit will be approximately 1,000 sq. ft. Mr. Cassano said they have owned the property for approximately two years. A concern was expressed that the application was incomplete as it did not identify all dedicated funding sources or plans for retail spaces. In response to questions, Ms. Thompson said staff recommends restricting the CRA's funds to the housing construction. The 17 spaced-parking lot will be located on the site the applicants already own (the one-story addition). The CRA's interest is to reduce the cost to build housing units; the CRA should not worry whether or not the applicants get the additional parking. She said the Trustees may tie approval of the project contingent on the applicant's obtaining additional land for parking. The City Attorney said if the motion is approved, the Trustees authorize Ms. Thompson to negotiate a grant agreement. The Trustees will have an opportunity to approve, or not, the grant agreement as recommended by staff. To some extent, the item will give staff direction on what the Trustees would like to see in the agreement. If the motion is not approved, staff will not have any reason to continue negotiations. Ms. Thompson said when the grant agreement comes back, zoning approved plans, construction timelines and financing details will be included. She said it is clear the Trustees have questions regarding total project cost and whether that includes land acquisition, sources of financing, timelines, types of uses on the ground floor, and how it may influence perception/foot traffic in Downtown. Trustee Cundiff moved to authorize the CRA Director to develop a grant agreement in the amount of $500,000 to incentivize the Page 5 City of Clearwater Community Redevelopment Agency Meeting Minutes March 16, 2020 construction of new rental housing as part of a mixed-use development at 708 Chestnut Street. The motion was duly seconded and carried with the following vote: Ayes: 4 - Chair Cretekos, Trustee Cundiff, Trustee Hamilton and Trustee Allbritton Nays: 1 - Trustee Polglaze 4.3 Approve the first amendment to the Fagade Grant for 808 Court Street Shopping Center in the amount of$39,825, 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. Facade 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 facade. 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. 888 Business, LLC. property owner Sherry Lung received approval for a facade grant to make improvements to the 808 Court Street Shopping Center in June 2019. The original request received 100 out of 100 total points due to its highly visible location on Court Street, the poor condition of the existing building fagade and the extent of the proposed improvements. The original application estimated the total project costs at $50,000, which made the project eligible for a $25,000 grant. This grant amount can be approved by the CRA Director and a fagade grant was approved. No reimbursement for the June 2019 grant has been requested to date. The original project scope was expanded to include additional improvements that increased the total project cost from $50,000 to $79,650. The owner has requested an increase in the fagade grant amount from $25,000 to a total of $39,825. Based on the work completed by the owner to date, eligible grant expenses include demolition of the old facia, stucco bands, exterior light fixtures, canopy and signage. The storefront window framing system has been reconstructed. New LED canopy lighting fixtures, signage, a parapet wall and stucco siding have been installed. The building has been painted as well. All changes comply with the downtown design standards. In addition to matching the CRA's financial investment, the owner must grant a Page 6 City of Clearwater Community Redevelopment Agency Meeting Minutes March 16, 2020 conservation easement to preserve and maintain the facade for a minimum of five years. CRA staff recommends approving the grant amendment to bring the total grant amount to $39,825 and acceptance of the fagade preservation easement. APPROPRIATION CODE AND AMOUNT: Funds are available in CRA Project code 3887552- 99979 Fagade Program. Trustee Hamilton moved to approve the first amendment to the Facade Grant for 808 Court Street Shopping Center in the amount of$39,825, accept the facade preservation easement, and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4.4 Approve an Agreement between the Community Redevelopment Agency and Amplify Clearwater, a Florida non-profit corporation, to produce and manage Downtown Clearwater events in an amount not to exceed $40,000 through Sept. 30, 2021 and authorize the appropriate officials to execute same. Special events, of all sizes, are an integral part in creating a welcoming atmosphere in downtown. The 2018 Clearwater Downtown Redevelopment Plan principles call for downtown to be a vibrant place for public expression, to enable the arts and to create a more socially resilient community by connecting neighborhoods to downtown. The CRA has demonstrated that downtown can transition to a lively, arts-infused place through its programming at Second Century Studios, Holiday Extravaganza and support for events like the Clearwater Downtown Partnership's craft beer festival and Blast Fridays. While there have been successes, staff has learned that smaller businesses and individuals have a difficult time navigating the City's special event permitting process and paying for city required public safety costs. This results in lost opportunities for new ideas, new audiences and additional events to occur on a regular basis. It is important to maintain a consistent schedule of downtown events, large and small, to generate foot traffic to support local businesses, to increase the quality of life for downtown residents and employees and to invite in new audiences to experience downtown. Once construction on Imagine Clearwater and Streetscape Phase II I begins, the CRA will need to increase its marketing efforts to remind our residents that downtown is still "open for business." To build on our successes and address current challenges with producing special events, the CRA proposes to contract with Amplify Clearwater to manage ten events in Downtown Clearwater in fiscal year 2020-2021 including: • 1 large-scale event (1,000+ people) Page 7 City of Clearwater Community Redevelopment Agency Meeting Minutes March 16, 2020 • 2 medium-scale events (100-1,000 people) • 3 small-scale events (20-100 people) • 4 arts events (10-1,000 people) Amplify will use its considerable resources, network and expertise to source and manage events in downtown with various partners and merchants to activate and program public spaces. Amplify will coordinate with the CRA to develop a process for soliciting and evaluating event ideas, provide staff to complete required paperwork for the city of Clearwater's Special Event permitting process and provide a basic level of marketing. The event producer will still maintain responsibility for staffing the event, paying for the talent and other production costs. The CRA will work with Parks and Recreation to request co-sponsorship of downtown events to offset public safety costs outside of this grant request. The proposed grant meets Objective 1H: Maintain, activate and program parks, plazas and recreational areas and Objective 3F: Promote the visual and performing arts in the downtown plan. It aligns with the CRA's adopted strategy of creating and sharing positive stories about downtown. This grant will serve to incentivize activity in downtown, helping to foster a vibrant and active public realm, to create recreation and entertainment opportunities, to promote the visual and performing arts, and to support the community in creating a downtown they love. APPROPRIATION CODE AND AMOUNT: Funds for this contract are available in professional services 1 88931 1-5301 00 In response to questions, CRA Executive Director Amanda Thompson said staff will be using time through October 1st to solicit ideas for the identified events and then find the talent and event producers. It will be an opportunity to determine what types of events people have wanted but unable to pursue. She said the City has big signature events but she would like to build the capacity of different organizations to produce events in Downtown. Trustee Allbritton moved to approve an Agreement between the Community Redevelopment Agency and Amplify Clearwater, a Florida non-profit corporation, to produce and manage Downtown Clearwater events in an amount not to exceed $40,000 through Sept. 30, 2021 and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 5. Director's Report Page 8 City of Clearwater Community Redevelopment Agency Meeting Minutes 6. Adjourn Attest March 16, 2020 CRA Executive Director Amanda Thompson presented three conceptual designs for the Mercado. The market festival plaza will be constructed as part of the Streetscape Phase 3 construction. Staff anticipates a final design will be recommended in May. Comments were made that the conceptual design should include the surrounding buildings. As presented, the conceptual design appears the plaza is located at the beach. The meeting adjourned at 10:15 a.m. City Clerk City of Clearwater air \,,\ pNIFf;vir"/i,„ CommRedevelopment Agency s.a E,fla;j ER'1C;ch Q'''''P• PQpRME ,< 0A :i '0', -tz F uO�`OP• \\ Page 9