02/14/2022 Community Redevelopment Agency Meeting Minutes February 14, 2022
City of Clearwater
Main Library- Council Chambers
100 N. Osceola Avenue
Clearwater, FL 33755
m
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Meeting Minutes
Monday, February 14, 2022
8:00 AM
Main Library - Council Chambers
Community Redevelopment Agency
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City of Clearwater
Community Redevelopment Agency Meeting Minutes February 14, 2022
Roll Call
Present 5 - Chair Frank Hibbard, Trustee David Allbritton, Trustee Hoyt Hamilton,
Trustee Kathleen Beckman, and Trustee Mark Bunker
Also Present—Jon Jennings—City Manager, Micah Maxwell — Assistant City
Manager, Michael Delk — Assistant City Manager, Owen Kohler —
Lead Assistant 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 8:00 a.m.
2. Approval of Minutes
2.1 Approve the minutes of the December 13, 2021 CRA Meeting as submitted in written
summation by the City Clerk.
Trustee Hamilton moved to approve the minutes of the December
13, 2021 CRA Meeting 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 Loan to Grant Agreement with 949 Cleveland Street, LLC for the property at
943 Cleveland Street, to extend the agreement to March 1, 2023, 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
CRA 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
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Community Redevelopment Agency Meeting Minutes February 14, 2022
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 was delayed. The CRA Trustees approved
an extension to March 1, 2022.
Unfortunately, the COVID 19 pandemic continued to delay progress and the
applicant was not able to secure a general contractor until late 2021. The
applicant is committed to this project. They have received a building permit and
have begun construction. They have requested a second amendment to extend
the grant agreement by one year to complete the project and open the new
businesses.
Staff recommends amending the grant to allow a new completion date of March
1, 2023. 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 Allbritton 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, 2023, 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.
4.2 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, 2023, 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
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Community Redevelopment Agency Meeting Minutes February 14, 2022
CRA 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 was delayed. The CRA Trustees approved an extension to March
1, 2022.
Unfortunately, the COVID 19 pandemic continued to delay progress and the
applicant was not able to secure a general contractor until late 2021. The
applicant is committed to this project. They have received a building permit and
have begun construction. They have requested to extend the grant agreement
by one year to complete the project and open the new businesses.
Staff recommends amending the grant to allow a new completion date of March
1, 2023. 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 Beckman 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, 2023, 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.
4.3 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, 2023, for
building improvements to implement the CRA Food and Drink Grant Program and
authorize the appropriate officials to execute same.
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City of Clearwater
Community Redevelopment Agency Meeting Minutes February 14, 2022
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
CRA 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 was delayed. The CRA Trustees approved an extension to March
1, 2022.
Unfortunately, the COVID 19 pandemic continued to delay progress and the
applicant was not able to secure a general contractor until late 2021. The
applicant is committed to this project. They have received a building permit and
have begun construction. They have requested to extend the grant agreement
by one year to complete the project and open the new businesses.
Staff recommends amending the grant to allow a new completion date of March
1, 2023. 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 Bunker 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, 2023, 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.
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Community Redevelopment Agency Meeting Minutes February 14, 2022
4.4 Approve the Second Amendment to Agreement for Development and Purchase and Sale
of Property between the Community Redevelopment Agency, the City of Clearwater and
Blue Pierce, LLC and authorize the appropriate officials to execute same.
The purpose of this item is to request approval of an amendment to the
development agreement between the Community Redevelopment Agency
(CRA) and Blue Pierce, LLC to extend the allowable time for closing and the
construction of the Blue Dolphin Tower.
After unsuccessful attempts to attract commercial, market rate development,
the Community Redevelopment Agency (CRA) issued RFP 09-19 on August
17, 2019, to redevelop the former Fire Station 45 site at 610 Franklin Street as a
housing tax credit project. Staff reviewed three qualified proposals and
recommended Blue Sky Communities as the winning proposal on September
18, 2019. Blue Sky Communities proposes to construct a 9-story, 81-unit
housing development with a two-story, 81-space parking garage. The unit mix is
30 1-bedroom, 47 two-bedroom and 4 three-bedroom units. This is a mixed
income project with 16% of the units at 30% AMI, 69% of the units at 60% AMI
and 15% of the units at 80% AMI. The developer successfully obtained state tax
credits from the 9% program in 2020.
Construction costs increased significantly during 2020 and 2021 due to the
pandemic, which led the developer to pause the Architecture process after
receiving a development order in August 2021. The developer did not wish to
continue preparing construction plans without obtaining additional funding to
construct the project. The developer has obtained additional funding as outlined
in the table below and is ready to finish construction drawings to obtain a
building permit. The development agreement requires obtaining all building
permits as a condition of closing.
BLUE DOLPHIN TOWER
Funding Sources Table, 1/24/22
*Presently scheduled for consideration by Pinellas County Commissioners at
Meeting on 2/8/22
Raymond James Bank$4,410,000
Raymond James Tax Credit Funds $17,744,225
Clearwater/CRA LGAO$610,000
Clearwater Addl Loan$1,800,000
Pinellas County - Penny Land Assembly* $1,000,000
Pinellas County - SHIP* $1,000,000
Deferred Developer Fee $1,560,425
TOTAL SOURCES $28,124,651
Closing is currently scheduled for March 2022 which the developer will not be
able to meet. Staff recommends extending the following dates in the agreement:
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Community Redevelopment Agency Meeting Minutes February 14, 2022
Task Current Deadline Amended Deadline
Closing/Sale of Property 3/1/2022 12/1/2022
Construction Commencement 4/1/2022 1/1/2023
Vertical Construction Commencement 10/1/2022 7/1/2023
Project Completion 4/1/2024 1/1/2025
APPROPRIATION CODE AND AMOUNT:
There is funding available in the Housing-County R2010 project fund for the
CRA's $305,000 portion of the local government contribution which remains
unchanged from the previous approval. The CRA will receive $2 million from the
sale of this property.
Chair Hibbard said his company, Steward Partners, has a
relationship with Raymond James and the City Attorney does not believe
a voting conflict exists.
In response to questions, CRA Executive Director Amanda Thompson
said the development review department is currently short-staffed,
requiring a time extension. The City is providing a no interest$1.8 million
loan using federal HOME funds. Blue Sky Communities President
Shawn Wilson said the company has made several commitments for
energy efficient features and achieving energy efficient ratings. The
company always tries to incorporate solar panels via a change order as it is
typically not required in a project.
Trustee Hamilton moved to approve the Second Amendment to
Agreement for Development and Purchase and Sale of Property
between the Community Redevelopment Agency, the City of
Clearwater and Blue Pierce, LLC and authorize the appropriate
officials to execute same. The motion was duly seconded and
carried unanimously.
4.5 Approve the Purchase contract for the City of Clearwater Community Redevelopment
Agency (CRA) to purchase real property located at 1351 Cleveland Street, Parcel No.
15-29-15-64890-003-0050, with a purchase price of$445,000 and total expenditures not
to exceed $10,000, including closing-related costs and preparation of the site, and
authorize the appropriate officials to execute same, together with all other instruments
required to affect closing.
The purpose of this item is to request approval to purchase 1351 Cleveland
Street which is the location of the Idle Spur Bar. The subject property, Parcel
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Identification Number 15-29-15-64890-003-0050, is owned by Clark D. Hubbard
(Seller). Seller's property has a total land area of approximately 10,500 square
feet and is developed with a 1,599 square foot building. The property has
approximately 50 ft of linear frontage on Cleveland Street and approximately 50
ft of linear frontage on Park Street. The subject property is adjacent to privately
owned land to the west and CRA-owned property to the east.
A primary purpose of the CRA is the assembly and redevelopment of blighted
property. This business generates numerous calls to the police and is in a state
of disrepair. It sits adjacent to three vacant parcels owned by the CRA that are
currently undergoing environmental remediation and are planned for
redevelopment. Once acquired, the CRA will demolish the existing building,
conduct any required environmental remediation, and engage the public in a
planning process to inform the redevelopment of the newly combined sites.
An independent appraisal was performed on the property on November 15,
2021, by Jim Millspaugh and Associates. The appraisal report determined that
the fair market value of the property is $220,000.00 and the fair market value of
the business is $225,000.00. Seller and Buyer have contracted herein for Real
Property only. The CRA does not typically purchase properties with active
businesses. The purchase price includes the fair market value of the business
to fairly compensate the property owner for the removal of an active business.
Summary of costs for the purchase of the subject property are as follows:
Purchase price $445,000
Closing related costs (not to exceed) $10,000
TOTAL $455,000
Your approval is recommended.
APPROPRIATION CODE AND AMOUNT:
Funding is available in CRA Project Fund R2004 - Economic Development
County.
In response to a question, CRA Executive Director Amanda Thompson
said downtown zoning provides a lot of flexibility but staff envisions it will
be a commercial redevelopment project for businesses, housing, and
mixed use. She said combining the lots to form a larger site provides more
options. She spoke with an individual recently who is interested in
building a restaurant/distillery from the ground up.
Trustee Allbritton moved to approve the Purchase contract for the
City of Clearwater Community Redevelopment Agency (CRA) to
purchase real property located at 1351 Cleveland Street, Parcel No.
15-29-15-64890-003-0050, with a purchase price of$445,000 and
total expenditures not to exceed $10,000, including closing-related
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costs and preparation of the site, and authorize the appropriate
officials to execute same, together with all other instruments
required to affect closing. The motion was duly seconded and
carried unanimously.
4.6 Approve an amendment to the agreement for the sale and development of the property
located at 1250 Cleveland Street and adjacent properties to Archway Partners, LLC to
extend the project schedule by one year and authorize the appropriate officials to execute
same.
The purpose of this item is to request approval of an amendment to an existing
development agreement between the Community Redevelopment Agency and
Archway Partners, LLC for the redevelopment of 1250 Cleveland Street and
adjoining properties. In accordance with Section 4.05 Project Schedule of the
agreement, Archway Partners has requested a one-year extension of all project
deadlines.
After receiving two Letters of Interest that aligned with the goals of the
Downtown Redevelopment Plan, the Community Redevelopment Agency
issued RFP/Q 43-21 for the redevelopment of its 2.35-acre site at 1250
Cleveland Street on May 26, 2021. The request called for a mixed-use or
apartment development that maintained or expanded the existing community
garden. The RFP was awarded to Archway Partners on August 16, 2021,
because of the project's excellent site design, developer experience, mixed
income approach and rooftop garden. The proposed project is a 4-story, 81-unit
mixed income, affordable apartment development. The project has an urban
design that fits the downtown design guidelines and will complement the new
streetscape as well as provide an appropriate transition between the
commercial uses on Cleveland Street and the residential area to the rear of the
site. There are 109 parking spaces, a rooftop garden and preservation of the
existing community garden. There are one bedroom and two-bedroom units that
range from 650-975 square feet of floor area. The units will be limited to
between 30-80% AMI and will be income restricted for the life of the project. The
building will obtain green building certification. The overall project cost is
approximately $28,000,000.
Construction of the project was contingent on obtaining additional state funding.
The developer failed to obtain state affordable housing tax credits, SAIL funding,
in 2021 and has presented three financial options for the CRA to consider
including applying for SAIL funding in 2022, requesting $6 million in County/City
grants or pursuing additional funding options by building an age restricted
development. Staff is recommending the developer pursue SAIL funding again
prior to considering other options.
Archway Partners believes that they can successfully obtain SAIL funding in
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Community Redevelopment Agency Meeting Minutes February 14, 2022
2022 if they can increase the number of units from 81 to 100 through the City's
Level 2 FLD process. They already have a 30% "basis boost" for this project
since they applied for bonds in 2021 and have obtained 20 Project-Based
Vouchers (PBVs) from the Clearwater Housing Authority which are worth $2
million in funding towards the development. Preparing the application for the
Level 2 FLD process will cost approximately $40,000 and take 3-4 months. The
current development agreement with the CRA requires closing by August 2022.
If the CRA Trustees approve an extension, the developer will have time to
request the additional units and file a new SAIL funding request. If the CRA
elects not to amend the deadlines, the developer will have until August 2022 to
fill a gap of approximately $6 million.
The proposed project meets the goals outlined in RFP/Q 43-21 derived from the
Principles, Goals and Objectives of the 2018 Clearwater Downtown
Redevelopment Plan to support redevelopment projects that are pedestrian
friendly, incorporate quality urban design and provide a variety of land uses in
downtown, including:
Policy 12: The City shall make use of Community Development Block
Grant, HOME Investment Partnership Program, State Housing Initiatives
Partnership program, and other federal, state, and county funds for
Downtown infrastructure and increasing affordable housing options.
Policy 18: The design of all projects in Downtown shall incorporate
pedestrian-scale elements that create and maintain an inviting
pedestrian environment.
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 Character Districts.
Objective 1 G: Continue to utilize a variety of incentives to encourage
the construction of new residential uses to location Downtown.
If approved, the new closing date would be no later than August 2023 and
construction would be complete by December 1, 2024. This is an excellent plan
that will only be enhanced with increased density and Archway Partners is the
right development team for this project. Approval of the amendment to allow a
one-year extension is recommended.
In response to questions, Archway Partners representative Brett Green
said one positive component regarding the state housing funds was
that a lot of the monies were shifted to the SHIP program, which is
directed to local governments for affordable housing. The company is
committed to the project, regardless if SAIL funds are awarded. He said
the company will explore other avenues to fund the gap that exists if SAIL
funds are not attained. The proposed site plan contemplates 100 unit.
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Community Redevelopment Agency Meeting Minutes February 14, 2022
Trustee Beckman moved to approve an amendment to the
agreement for the sale and development of the property located at
1250 Cleveland Street and adjacent properties to Archway Partners,
LLC to extend the project schedule by one year and authorize the
appropriate officials to execute same. The motion was duly
seconded and carried unanimously.
4.7 Discuss a proposed agreement for the sale and development of the property located at
306 South Washington to SP Clearwater WFH, LLC and the Clearwater Housing
Authority for the purposes identified in Request for Proposals and Qualifications (RFP/Q)
53-20 and authorize the appropriate officials to execute same.
The purpose of this item is to request approval of a development agreement
between the Community Redevelopment Agency (CRA), the Clearwater
Housing Authority (CHA) and SP Clearwater WFH, LLC (Developer) to
redevelop the CRA-owned property at 306 South Washington Avenue for the
purposes identified in RFP/Q 53-20.
Background
The Community Redevelopment Agency issued RFP/Q 53-20 for the
redevelopment of its site at 306 South Washington on August 17, 2020. The
request called for a mixed-use or apartment development with a focus on
workforce and market rate housing, the opportunity for shared parking to serve
surrounding restaurant/retail businesses and ample outdoor amenity space.
There is currently a lack of supply of rental housing for employees in the
technology industry downtown, at Morton Plant Hospital and on Clearwater
Beach who earn 80% or higher of the area median income (AMI). Building
shared parking on the South Washington site is key to supporting commercial
uses on the ground floors of APEX 1100, The Nolen apartment buildings and the
planned brewery at 115 S. Martin Luther King, Jr. to the north of the subject
property.
The CRA received responses from the Housing Trust Group, LLC and SP
Clearwater WFH LLC. On October 12, 2020, the CRA Trustees selected SP
Clearwater WFH, LLC as the winning bidder and authorized the CRA Director to
prepare a development agreement.
Proposed Project
The project is a 171-unit mixed income apartment development, with a
minimum 260-space parking garage with tenant amenities including a pool, dog
walking area, two playgrounds, exercise room and community room. There is a
mixture of 1-bedroom (725 sq. ft.) units and 2-bedroom (925 sq. ft.) units. There
will be 18 affordable units at 80% of AMI, 49 units at 100% of AMI and 104
affordable units at 120% of AMI. The building will include high efficiency HVAC,
Energy Star rated windows, low flow toilets and sound deadening construction.
The parking area will include a dedicated Uber/Lyft area to support car sharing
services as well as ample bicycle parking. There will be 40 public parking
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spaces operated by the apartment management company that will be available
to the public for a minimal charge. The overall project cost is approximately
$38,436,995.
Current Status
From November 2020 to April 2021, the developer obtained approval for grant
funding from Pinellas County, filed with the City for site plan approval and for six
additional units from the public amenities pool, confirmed construction cost
estimates and completed environmental site analysis. Two issues emerged that
increased construction and operating costs - an environmental issue and a
property tax issue.
The Montrose Phase I Environmental Report prepared for the Developer
acknowledges that the 2009 City Phase I environmental report's conclusion that
the project site is "clean" relies on a Site Rehabilitation Completion Order
("SRCO") dated July 1, 2009, by the Florida Department of Environmental
Protection ("FDEP") after testing of the soils and the groundwater showing no
contaminates exceeded the allowed thresholds. This determination was found
to be still in place because there has been no activity on or near the site that
would have introduce contaminants to the site since the report was issued.
However, the ECS Geotech Reports 1 and 2 completed in March 2021 found (1)
a buried concrete vault that needs to be dug out and replaced with controlled fill,
(2) buried peat that is unbuildable and requires being dug out and replaced by
controlled fill and (3) the top 2 feet of soil covering the site has small bodies of
non-soil debris including slag throughout the site that could not be used for
building. All unusable dirt will need to be hauled off the site and replaced with
structurally sound dirt. The CRA has allocated up to $300,000 in additional grant
funds to remove the concrete vault, the buried peat and bring in controlled fill to
make the site buildable.
Typically, affordable housing projects pay local property taxes on only 50% of
the taxable value. This is a benefit under Florida law to support affordable
housing. This project is a mixture of affordable and workforce housing units that
will be subject to income restrictions and the land will be owned by the Pinellas
County Land Bank. Although this is a permanently affordable project, it is not
recognized as such under current Florida law. Because most of the units
exceed 60% AMI, it will be taxed as a market rate, for profit project at 100% of
the taxable value. Based on the land restrictions requiring permanent
affordability, the developer assumed the state discount and estimated a tax
payment of$1,200 per unit or $205,200 annually in City/County taxes as part of
their project proposal and grant requests. After meeting with the property
appraiser in March 2021, the CRA and developer learned the actual tax payment
per unit would be $2,388 per unit or$408,348 annually. Under current and
projected rental rates, the project will not generate enough income to pay the full
project amount of City and County property taxes.
To address the property tax increase, staff recommends the CRA partner with
the Clearwater Housing Authority (CHA) to manage and own the project. The
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CHA is a tax-exempt entity. However, the CRA has negotiated a revenue
sharing agreement to provide up to $200 per unit to the City/CRA and $200 to
the County. The terms of the revenue sharing are outlined in a separate
Interlocal agreement. The developer, Southport LLC, will still design and build
the project as originally proposed.
Proposed Development Terms
The proposed development agreement is conditioned on the construction of
plans substantially similar to those submitted with the original application and
the following CRA incentives:
- The sale of the site to the Pinellas County Land Trust for
$3,420,000 and reinvestment of those funds back into the project
- The provision of an $800,000 grant towards the project in
exchange for public parking and up to $300,000 for site remediation
- Support an application before the Community Development
Board to receive 6 housing units from the density pool
- Assignment of the project to the Clearwater Housing Authority (Term
Added January 2022)
The applicant is requesting the following funding from the City (which is a
separate action from the CRA development agreement):
- $880,000 HOME loan
Sale of the property, or closing, is anticipated to occur in late 2022. The
proposed agreement requires the following conditions to be met prior to closing:
Approval for the $880,000 HOME loan from the City
Final zoning entitlements for the additional 6 units from
the density pool
Closing dates and final approvals established for transfer
of ownership to the Pinellas County Land Trust
Project Justification
The proposed project meets the goals outlined in RFP/Q 53-20 derived from the
Principles, Goals and Objectives of the 2018 Clearwater Downtown
Redevelopment Plan to support redevelopment projects that are pedestrian
friendly, incorporate quality urban design and provide a variety of land uses in
downtown, including:
Policy 12: The City shall make use of Community
Development Block Grant, HOME Investment Partnership Program,
State Housing Initiatives Partnership program, and other federal, state,
and county funds for Downtown infrastructure and increasing affordable
housing options.
Policy 18: The design of all projects in Downtown shall
incorporate pedestrian-scale elements that create and maintain an
inviting pedestrian environment.
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 Character Districts.
Objective 1 G: Continue to utilize a variety of incentives to
encourage the construction of new residential uses to location
Downtown.
Objective 2M: Create parking as infrastructure through a
park once strategy that utilizes consolidated parking to serve all of
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Downtown and reduces the requirement for use-by-use on-site
parking.
This is a catalyst project for this area that would provide new residents to
downtown and parking to support nearby businesses on Cleveland Street.
There are three aspects to this proposal that provide long term housing
affordability. First, the CRA will sell the land to the Pinellas County Land Trust
who will own the underlying land in perpetuity. The land trust will then provide a
99-year lease to the Clearwater Housing Authority. Second, the rental rates are
set by the AMI established by Pinellas County and cannot increase more than
1.02% per year. Typically, market rate rental amounts increase more than 1%
per year. Third, all revenues generated by the Clearwater Housing Authority
must be used aligned with their mission to provide affordable and workforce
housing. This project will be a long-term source of revenue for affordable
housing in Clearwater.
APPROPRIATION CODE AND AMOUNT:
Funds are available in CRA Project Code 3887552 - R2009 Housing - City.
In response to questions, Clearwater Housing Authority Jacqueline
Rivera said there is consensus among the CHA Board of
Commissioners (Board) to continue the process to determine if the
numbers will fit the portfolio. She said the costs for the operations,
construction, and debt-issuance will be updated in March. She said
once the numbers are updated, the Board will have to issue a resolution if
they are in agreement to move forward with the project. CRA Executive
Director Amanda Thompson said if there if agreement to move forward
with the project, an item will be presented to the CRA no later than May.
South Port representative Peter Leech said the Clearwater Housing
Authority is one of the best in the state and the project's potential fits their
ability.
4.8 Discuss an Interlocal Agreement between the City of Clearwater and the Community
Redevelopment Agency (CRA), Pinellas County, and the Clearwater Housing Authority to
provide for revenue sharing and the redevelopment of 306 S Washington Avenue, and
authorize the appropriate officials to execute same.
The purpose of this item is to discuss a pending Interlocal agreement that is a
companion item to the 306 South Washington Avenue development agreement.
The 306 South Washington project is a 171-unit mixed income apartment
development, a minimum of 260-space parking garage with tenant amenities
including a pool, dog walking area, two playgrounds, exercise room and
community room. There is a mixture of 1-bedroom (725 sq. ft.) units and
2-bedroom (925 sq. ft.) units. There will be 18 affordable units at 80% of AMI, 49
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City of Clearwater
Community Redevelopment Agency Meeting Minutes February 14, 2022
units at 100% of AMI and 104 workforce units at 120% of AMI.
Typically, affordable housing projects pay local property taxes on only 50% of
the taxable value. This is a benefit under Florida law to support affordable
housing. This project is a mixture of affordable and workforce housing units that
will be subject to income restrictions and the land will be owned by the Pinellas
County Land Bank. Although this is a permanently affordable project, it is not
recognized as such under current Florida law. Because most of the units
exceed 60% AMI, it will be taxed as a market rate, for profit project at 100% of
the taxable value. Based on the land restrictions requiring permanent
affordability, the developer assumed the state discount and estimated a tax
payment of$1,200 per unit or $205,200 annually in city/county taxes as part of
their project proposal and grant requests. After meeting with the property
appraiser in March 2021, the CRA and developer learned the actual tax payment
per unit would be $2,388 per unit or$408,348 annually. Under current and
projected rental rates, the project will not generate enough income to pay the full
project amount of city and county property taxes.
This mixed income housing project is a high priority for the city, CRA and
Pinellas County to meet the significant need for workforce housing and
downtown redevelopment goals. Without additional financial subsidy, this
project cannot move forward. Staff believes the best option is to transfer
ownership to the Clearwater Housing Authority (CHA) who has the expertise to
manage a mixed income property and has proposed a revenue sharing
agreement. Additionally, all revenues generated by the CHA must be spent to
further their mission of providing affordable housing. Mixed income projects like
these provide a continuous source of revenue to construct and maintain
affordable housing without relying on federal, state, or local subsidies.
The proposed Interlocal agreement is a multi-party agreement including the
Clearwater Community Redevelopment Agency (CRA), the City of Clearwater
(City), Pinellas County (County) and the CHA. The agreement outlines each
parties funding commitments to the project, the long-term ownership of the
project site and public parking and the revenue sharing arrangement between
the CHA and the other parties. The agreement includes the following terms:
• Acknowledges that the provision of workforce and affordable housing is
an adopted policy of all entities that are party to the agreement.
• The CRA will sell the project site to the Pinellas County Land Trust for
$3,460,000 and will reinvest the proceeds into the construction of the
project. The Land Trust will enter a long-term lease with the Clearwater
Housing Authority.
• The CHA and the Developer will construct and manage the project in
accordance with the terms adopted in the development agreement with
the CRA. This includes the provision of 40 spaces for public parking, no
assignments unless approved by all parties and maintaining income
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City of Clearwater
Community Redevelopment Agency Meeting Minutes February 14, 2022
restrictions.
• The CHA will participate in revenue sharing if there is net surplus after all
loan obligations, administrative fees and maintenance costs are met.
"Net Surplus Revenues of the Project" shall mean the net cash income
of the Project after the payment of all operating expenses (including
management fee of not in excess of 6%), funding or replenishment of
operating, debt service and replacement reserves for the Project,
required payment of debt service (including redemption of bonds issued
for the construction of the Project).
• The CHA will pay 50% of the Net Surplus Revenues of the Project, up to
but not exceeding an amount equal to $400 per unit shall be paid to the
City ($100 per unit), the CRA ($100 per unit) and the County ($200 per
unit); If, during the term of this Agreement, the CRA ceases to exist, the
City's portion of the annual payment shall be increased to include what
would have been the CRA's share.
• 50% of the Net Surplus Revenues of the Project shall be retained by the
CHA and used for any purpose consistent with Chapter 421, Florida
Statutes.
• Payment will begin after the first year of stabilization of the project
meaning occupancy levels of 95% for a period of six months. Payments
will be made on an annual basis.
There is a significant need for affordable and workforce housing in Pinellas
County and in Clearwater. This project is a public/private partnership that can
deliver a high quality, mixed income apartment development that will remain
financially sustainable ensuring affordable housing for decades into the future.
5. Director's Report
CRA Executive Director Amanda Thompson introduced Matt Jackson,
the new CRA Assistant Director. She said staff met with the 400 and 500
block property owners and merchants last Friday that went very well.
Another meeting has been scheduled for April 8 to discuss the potential
enhancement on Cleveland Street. She said staff has informed the
business owners that their business model cannot be based on having
access to the street. The Downtown Development Board has decided that
they will continue to hear funding requests and invite individuals to the
meetings. CRA staff will continue to host quarterly Downtown coordination
meetings. She said the North Greenwood CRA planning meeting is
scheduled for February 24.
In response to questions, Ms. Thompson said the grants provided to the
individuals at the corner of Chestnut Street and Myrtle Avenue expires at the
end of May. Based on the Trustees'sentiment, staff will not bring back the
item for an extension. If the grant agreement is not extended, the agreement
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City of Clearwater
Community Redevelopment Agency
6. Adiourn
Meeting Minutes February 14, 2022
expires. She said the individuals have had difficulties with the access
agreement with Walgreens. The individuals had two years to obtain a
building permit. She said the individuals have funding to do a project, maybe
not the project they proposed. The City Manager said the 26/28 N. Fort
Harrison Avenue sites are owned by a local individual and there is interest by
other parties to purchase the sites; staff has been focusing on cleaning
up the sites. He said in the coming days there will be announcement
regarding the redevelopment of the former Dunkin Donuts building and
400/500 blocks on Cleveland Street. Ms. Thompson said the Lucky
Anchor tenant was given a 30 -day eviction notice. The City Manager said
the eviction notice was part of the redevelopment effort on Cleveland
Street. He said staff assisting the owners of the dueling piano bar with
the opening process. Ms. Thompson said staff is in the process of
sourcing new furniture for Station Square Park in preparation for
re -opening the area.
The meeting adjourned at 8:45 a.m.
Chair
Attest Community Redevelopment Agency
City Clerk
City of Clearwater
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