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01/19/2021 Community Redevelopment Agency Meeting Minutes January 19, 2021 City of Clearwater Main Library- Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 Meeting Minutes Tuesday, January 19, 2021 9:00 AM Main Library - Council Chambers Community Redevelopment Agency 1 Community Redevelopment Agency Meeting Minutes January 19, 2021 Roll Call Present 5 - Chair Frank Hibbard, Trustee David Allbritton, Trustee Hoyt Hamilton, Trustee Kathleen Beckman, and Trustee Mark Bunker Also Present: William B. Horne II — 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 Hibbard The meeting was called to order at 9:08 a.m. in Council Chambers at the Main Library. 2. Approval of Minutes 2.1 Approve the November 16, 2020 CRA Meeting Minutes as submitted in written summation by the City Clerk. Trustee Allbritton moved to approve the November 16, 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 Kathy Flaherty suggested that future CRA agendas include updates from Clearwater Police Department regarding their enforcement efforts in the CRA district and from the Downtown Development Board regarding how they are spending the CRA funds. She also suggested increasing the CRA membership by one individual who would act as the treasurer. 4. New Business Items 4.1 Adopt the Community Redevelopment Agency (CRA) strategy that outlines the CRA's work program from January 2021 through December 2022. 2 Community Redevelopment Agency Meeting Minutes January 19, 2021 The purpose of this item is to present the amended January 2021 - December 2022 Community Redevelopment Agency (CRA) implementation strategy for adoption. At the September 2020 CRA meeting, the Trustees reviewed the proposed strategy and requested that staff identify specific objectives like the 2018 strategy and performance measures. The strategy has been revised to include the requested items which will be presented at the meeting. For reference, the September 2020 staff report summarizing the strategy has been included below. September 2020 Staff Report Revitalizing a downtown is a long term, complex process at the intersection of community engagement, economic development and urban planning. The CRA relies on partnerships, both city departments and external organizations, to bring the adopted vision for downtown to life. Commitment to a work program and funding priorities allows staff to successfully plan for multi-year projects and communicate potential CRA investments to its partners. In May 2018, the CRA Trustees adopted a new Clearwater Downtown Redevelopment Plan which outlined a vision and goals to increase the attractiveness of downtown as a place to live, work and play. The 2018 redevelopment plan also established an operational framework and capital improvements budget for the next 5-10 years. On October 29, 2018, the CRA trustees adopted a more detailed 18-month implementation strategy to guide the short-term work of CRA staff and investments. The strategy had one main outcome, "to shift the perceptions held by the public and investors about city government and downtown Clearwater to one that aligns with the 2018 adopted vision." This strategy had four objectives; each objective contained a variety of tasks: Creating and sharing authentic, positive stories about Downtown Clearwater Beginning construction on Imagine Clearwater Permitting 600 housing units Attracting $100 million dollars of private investment The CRA was able to achieve significant progress in each area, including a shift in operations to prioritize marketing, beautifying public spaces and providing new signature events. RFPs were issued for three CRA owned sites and seven food and drink grants were awarded. The CRA hosted the "Dreams of Dali" virtual reality exhibition for six months attracting over 4,600 visitors to downtown and winning an "Best of Bay" award. The 15% design was completed for Imagine Clearwater as well as the Harborview Center was demolished. However, during this time very few housing units were constructed and there was little private investment. This was primarily due to the lack of investor confidence in downtown's ability to attract customers/residents, the difficulty of obtaining financing to construct multi-story housing and the CRA's limited network of potential investors. This year has brought significant changes for the CRA including new trustees, the COVID-19 pandemic, a shift in the design of Imagine Clearwater to emphasize the live performance venue and a new funding source through 3 Community Redevelopment Agency Meeting Minutes January 19, 2021 Pinellas County for workforce housing. Downtown businesses and City/CRA staff have responded to these challenges with creativity through the temporary closure of the 400-500 blocks of Cleveland Street and the restaurant voucher program among other initiatives. Over the next two years, there will be significant construction of public improvements throughout the CRA with Streetscape Phase III/Mercado in the Downtown Gateway and the waterfront redevelopment in the Downtown Core which will impact the accessibility and visibility of current businesses. There could be a referendum on the sale/lease of the bluff properties and the establishment of a conservancy which will need the support of Clearwater voters and donors to be successful. There will be increased county funding for workforce housing developments as well as the continuance of the Opportunity Zone federal tax benefits which could stimulate multi-family housing construction. Physical distancing impacts from COVID-19 will be in place through Spring 2021 limiting in person special events continuing the need to create new ways of gathering. Anticipating the impact of these factors is an essential part of our planning for the next two years. It is vital that the CRA keep downtown at the forefront of our residents' and visitors' minds to sustain current businesses and build up patrons for future ones. The outcome of the proposed strategy is the same at the 2018 strategy -to change the perception held by the public and investors about downtown to one that is positive and encourages investment. All the proposed CRA programs, capital improvement projects and activities are designed to change the perception of downtown to show it is welcoming, arts infused, vibrant, diverse and sustained by partnerships. The work will be contained in three focus areas: 1. Creating and sharing positive, authentic stories about downtown Clearwater 2. Increasing investor confidence 3. Investing in placemaking and placekeeping The plan lists the proposed activities for each focus area as well as how we will measure our success. Highlights include new business assistance grant programs, identifying "Downtown Champions" to bring their ideas to life in downtown, the redevelopment of CRA owned properties with housing, public art projects and increased marketing efforts to target developers. Staff has created momentum over the past two years and are poised to continue the ongoing transformation of downtown. Staff looks forward to the Trustees' feedback and guidance on this approach. CRA Executive Director Amanda Thompson provided a PowerPoint presentation. In response to questions, Ms. Thompson said the Engineering Department is implementing the Mercado project, the RFP for construction services is out and responses are due within 45 days. Staff anticipates construction will begin in June. She said the Trustees have 4 Community Redevelopment Agency Meeting Minutes January 19, 2021 already approved the pavilion design; construction will be built at the same time as the streetscape. Ms. Thompson said during the last three-year period, the estimated private investment in the CRA was $10-15 million in new businesses, rehabilitation of properties or the purchase of an operational business. The DDB pays the CRA $76,000 annually for administrative services. CRA Business Assistance Administrator Howard Smith will provide an update regarding improving the exterior surfaces of the commercial business in the Downtown Gateway at the February meeting. She said the Cleveland Street Lighting project will be year-round immersive light installation. Due to COVID travel restrictions, the lighting project is on pause until the Canadian consulting team is free to travel. In response to a comment regarding Scientology tours, it was stated that the Church of Scientology would not be involved with the tours. The proposed guided tours would be conducted by former members who would provide a history of the organization in Clearwater. In response to questions, Ms. Thompson said there are appropriate mechanisms in place that monitor DDB's finances. The DDB meetings are all public. She said staff can work with the DDB to have their information more accessible. CRA staff looks at development agreements, business tax receipts, construction permits, and philanthropic investments to determine private investment in the CRA. She said the $50 million in private investment may be underestimated but it is achievable in a two-year timeframe. The City Attorney said she believes the City can require the grants provided by the CRA be expended for the improvements. The CRA does require receipts before releasing the grant funds but does not require the property owner to expend the funds. She said the City is not a party of the agreement between the property owner and the tenant. Ms. Thompson said the 115 S MLK, Jr. Avenue Brewery Compost Site project was being discussed pre-COVID with the Community Garden and city staff in an effort to grow food that is served in restaurants. Breweries produce a lot of waste that could be composted and used in the garden, when done correctly, composting does not smell. Discussion ensued with comments made that the Downtown Ambassadors should not be limited to Downtown or Clearwater residents. Staff was directed to provide information on the percentage of vacant properties. It was suggested that a viewing area of Imagine Clearwater with a full schematic be considered. One individual expressed concern with the lack of progress being made in 5 Community Redevelopment Agency Meeting Minutes January 19, 2021 the Gateway area. Trustee Hamilton moved to adopt the Community Redevelopment Agency (CRA) strategy that outlines the CRA's work program from January 2021 through December 2022. The motion was duly seconded and carried unanimously. 4.2 Update on staff and financial requirements to administer a Vacant Property Registry in the Community Redevelopment Area. CRA Executive Director Amanda Thompson provided a PowerPoint presentation. In response to questions, Ms. Thompson said neither process guarantees the property owner will provide truthful information. Assistant City Attorney Michael Fuino said ProChamps collects data and a $100 registration fee for each registered property. It will be up to staff to determine what to do with the collected data. Ms. Thompson said the CRA's strategy has been focused on directing most of its time and money towards CRA and City owned properties to get those spaces developed and filled. In addition, the CRA has been developing grant programs that incentivize filing vacant spaces and temporary programming that reduce blight. Mr. Fuino said ProChamps maintains these registrations for 200 local governments nationwide, with ten located in Florida. He contacted the code compliance mangers from the cities of Sanford, Miami, and West Palm, from the code compliance perspective, they all stated the vacant property registry was positive. The vendor has their own means to collect the information, but the easiest way to collect the information would be from staff. Discussion ensued with comments made that the vacant property registry may not accomplish a reduction in vacant properties. One individual supported a vacant property registry. Trustee Allbritton moved to proceed with staff's recommendation for a staff driven vacant property registry. The motion was duly seconded and carried unanimously. 6 Community Redevelopment Agency Meeting Minutes January 19, 2021 4.3 Amend the Loan to Grant Agreement with 949 Cleveland Street, LLC for the property at 943 Cleveland Street, to extend the agreement to March 1, 2022, 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. 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 February 18, 2020, the CRA Trustees determined that the applicant's proposal met the program requirements and approved a loan to grant in the amount of$187,632.50 for 949 Cleveland LLC to build out a vacant storefront and establish a coffee and dessert shop that will serve hot and cold drinks along with a wide selection of desserts. The total project cost is $375,265.00. The applicant planned to complete construction by February 18, 2021. Due to the COVID-19 pandemic, construction has been delayed. The applicant is committed to this project. They have applied for a building permit and been through a revision process, so they anticipate receiving a building permit in the next 30 days. They have requested to extend the grant agreement by one year to complete construction. Staff recommends amending the grant to allow a new completion date of March 1, 2022. 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. It will also fill a persistently vacant site on Cleveland Street. The original grant agreement incorporates the property owner's full application and financial documents to secure the loan to grant agreement over a five-year period. Those documents will remain unchanged. APPROPRIATION CODE AND AMOUNT: Funds for this grant are available in 3887552-R2003 Economic Development-City The Trustees recessed from 10:34 a.m. to 10:42 a.m. NM Residential representative Matthew McWilliams provided project updates and provided a PowerPoint presentation. In response to questions, Mr. McWilliams said most of the third set of 7 Community Redevelopment Agency Meeting Minutes January 19, 2021 comments received for the permit submittals. The parking needs will be met by using some of the parking at the former Walgreens site, parallel parking on Cleveland Street and the new parking lot on the north side of the property. CRA Executive Director Amanda Thompson said there is no parking requirement in the Downtown zoning district. The CRA did the land swap to assist them with parking. Trustee Beckman moved to amend the Loan to Grant Agreement with 949 Cleveland Street, LLC for the property at 943 Cleveland Street, to extend the agreement to March 1, 2022, 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 Amend the Loan to Grant Agreement with 949 Cleveland Street, LLC for the property at 1011 Cleveland Street, to extend the agreement to March 1, 2022, 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. 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 February 18, 2020, the CRA Trustees determined that the applicant's proposal met the program requirements and approved a loan to grant in the amount of$250,000 for 949 Cleveland LLC 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 total project cost is $610,438.00. The applicant planned to complete construction by February 18, 2021. Due to the COVID-19 pandemic, construction has been delayed. The applicant is committed to this project. They have applied for a building permit and been through a revision process, so they anticipate receiving a building permit in the next 30 days. They have requested to extend the grant agreement by one year to complete construction. Staff recommends amending the grant to allow a new completion date of March 1, 2022. This site is critical to serving existing residents and attracting new residents to apartment developments in this area, in turn, generating a favorable 8 Community Redevelopment Agency Meeting Minutes January 19, 2021 market to encourage new housing developments in the downtown core. It will also fill a persistently vacant site on Cleveland Street. The original grant agreement incorporates the property owner's full application and financial documents to secure the loan to grant agreement over a five-year period. Those documents will remain unchanged. APPROPRIATION CODE AND AMOUNT: Funds for this grant are available in 3887552-R2003 Economic Development-City Trustee Bunker moved to amend the Loan to Grant Agreement with 949 Cleveland Street, LLC for the property at 1011 Cleveland Street, to extend the agreement to March 1, 2022, 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. 4.5 Amend a Loan to Grant Agreement with 949 Cleveland Street, LLC for the properties at 1017, 1023 and 1029 Cleveland Street, to extend the agreement to March 1, 2022, 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. 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 February 18, 2020, the CRA Trustees determined that the applicant's proposal met the program requirements and approved a loan to grant in the amount of$250,000.00 for 949 Cleveland LLC to build out multiple vacant storefronts 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 total project cost is $570,655.48. The applicant planned to complete construction by February 18, 2021. Due to the COVID-19 pandemic, construction has been delayed. The applicant 9 Community Redevelopment Agency Meeting Minutes January 19, 2021 is committed to this project. They have applied for a building permit and been through a revision process, so they anticipate receiving a building permit in the next 30 days. They have requested to extend the grant agreement by one year to complete construction. Staff recommends amending the grant to allow a new completion date of March 1, 2022. 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. It will also fill a persistently vacant site on Cleveland Street. The original grant agreement incorporates the property owner's full application and financial documents to secure the loan to grant agreement over a five-year period. Those documents will remain unchanged. APPROPRIATION CODE AND AMOUNT: Funds for this grant are available in 3887552-R2003 Economic Development-City Trustee Hamilton moved to amend a Loan to Grant Agreement with 949 Cleveland Street, LLC for the properties at 1017, 1023 and 1029 Cleveland Street, to extend the agreement to March 1, 2022, 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. 4.6 Temporarily re-open the Food and Drink Business Tenant Program for the purpose of renewing the Loan to Grant Agreement with Fourcee LLC d/b/a Blackbrick Tavern and Kitchen at 432 Cleveland Street and authorize the appropriate officials to execute same. At the October 29, 2018 CRA meeting, the CRA Trustees approved a time limited, grant program for restaurant tenants in the Community Redevelopment Agency (CRA) area that received a Certificate of Occupancy or were under active construction after January 1, 2018. As part of that program, Fourcee LLC d/b/a Blackbrick Tavern and Kitchen received a loan to grant in the amount of $61,341.25. The grant agreement, after two extensions, required the business to receive a Certificate of Occupancy by October 1, 2019. Fourcee LLC d/b/a Blackbrick Tavern and Kitchen submitted a grant application, supporting invoices and the financial documentation necessary for a complete grant request. The applicant provided invoices totaling $175,260.72 detailing improvements necessary to open a restaurant as part of their grant request. The CRA determined that $61,341.25 was eligible for grant funding. The Business Tenant Food and Drink grant program allows for a loan to grant to be forgiven over a 5-year period. The tenant must stay in business and maintain the existing improvements to the building for a minimum of 5 years. After several delays during construction, Black Brick Tavern has received a CO 10 Community Redevelopment Agency Meeting Minutes January 19, 2021 and is now open as a full-service bar and restaurant. Staff recommends renewing the grant and moving forward with issuing eligible grant reimbursements. No other changes to the terms of the grant are proposed. APPROPRIATION CODE AND AMOUNT: Funds are available in 3887552-R2003 Economic Development -City Trustee Allbritton moved to temporarily re -open the Food and Drink Business Tenant Program for the purpose of renewing the Loan to Grant Agreement with Fourcee LLC d/b/a Blackbrick Tavern and Kitchen at 432 Cleveland Street and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 5. Director's Report 6. Adjourn It was suggested the CRA meetings be held earlier. There was consensus to hold the CRA meetings at 8:00 a.m. The meeting adjourned at 10:54 a.m. Attest Community Redevelopment Agency City Clerk 11