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07/18/2022Monday, July 18, 2022 8:00 AM City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 Main Library - Council Chambers Community Redevelopment Agency Meeting Agenda July 18, 2022Community Redevelopment Agency Meeting Agenda Citizens wishing to provide comments on an agenda item are encouraged to do so in advance through written comment. The City has established the following four options to ensure public comment for a virtual meeting: 1)eComments via Granicus - eComments is integrated with the published meeting agenda. Individuals may review the agenda item details and indicate their position on the item. You will be prompted to set up a user profile to allow you to comment, which will become part of the official public record. The eComment period is open from the time the agenda is published. Comments received during the meeting will become part of the official record, if posted prior to the closing of public comment. The City Clerk will read received comments into the record. 2)Email – Individuals may submit written comments or videos to ClearwaterCouncil@myclearwater.com. All comments received by 5 p.m. the day before the meeting (July 17) will become part of the official record. The City Clerk will read received comments into the record. 3)Council Chambers - Additionally, like any other council meeting, the public may provide public comment at the Main Library, Council Chambers, 100 N Osceola Avenue. Due to COVID-19, all speakers desiring to appear in person will be subject to all applicable emergency measures in place to prevent the further spread of COVID-19. Speakers who appear in person will be subject to screening for symptoms of COVID-19. Any persons exhibiting any symptoms of COVID-19 will not be permitted to enter council chambers but will be able to participate through the remote options described above. 1. Call To Order 2. Approval of Minutes 2.1 Approve the minutes of the May 16, 2022 CRA Meeting as submitted in written summation by the City Clerk. 3. Citizens to be Heard Regarding Items Not on the Agenda 4. New Business Items 4.1 Approve the transfer of $1,500,000 in Community Redevelopment Agency tax increment financing (TIF) funds to pay for impact fees and connection fees generated by the redevelopment partnership between the City, The DeNunzio Group LLC, and Gotham Property Acquisitions, LLC, and authorize the appropriate officials to execute same. 4.2 Provide staff direction on future budget allocations for affordable and workforce housing in the downtown CRA. 5. Adjourn Page 2 City of Clearwater Printed on 7/13/2022 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#22-0683 Agenda Date: 7/18/2022 Status: Agenda ReadyVersion: 1 File Type: MinutesIn Control: Community Redevelopment Agency Agenda Number: 2.1 SUBJECT/RECOMMENDATION: Approve the minutes of the May 16, 2022 CRA Meeting as submitted in written summation by the City Clerk. SUMMARY: APPROPRIATION CODE AND AMOUNT: USE OF RESERVE FUNDS: Page 1 City of Clearwater Printed on 7/13/2022 Community Redevelopment Agency Meeting Minutes May 16, 2022 Page 1 City of Clearwater City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 Meeting Minutes Monday, May 16, 2022 8:00 AM Main Library - Council Chambers Community Redevelopment Agency Draft Community Redevelopment Agency Meeting Minutes May 16, 2022 Page 2 City of Clearwater Roll Call Present 5 - Chair Frank Hibbard, Trustee David Allbritton, Trustee Teixeira, Trustee Kathleen Beckman, and Trustee Mark Bunker Also Present – Jon Jennings – City Manager, Micah Maxwell – Assistant City Manager, Michael Delk – Assistant City Manager, David Margolis – City Attorney, Rosemarie Call – City Clerk, Nicole Sprague – Deputy City Clerk, and Matt Jackson – Assistant CRA Director To provide continuity for research, items are listed in agenda order although not necessarily discussed in that order. Unapproved 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 March 14, 2022 CRA meeting as submitted in written summation by the City Clerk. Trustee Allbritton moved to approve the minutes of the March 14, 2022 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 Kathy Flaherty requested that grass be installed in the Mercado Festival area until a workable community driven design is developed. She expressed concern with staff's recommendation to install a concrete pad and address the shade component with a more affordable option at a later date. She said she canvassed the area for input; there was support to install grass until the design has been finalized. 4. New Business Items 4.1 Confirm the City Manager’s appointment of Jon Jennings as the Interim CRA Executive Director. Draft Community Redevelopment Agency Meeting Minutes May 16, 2022 Page 3 City of Clearwater The Community Redevelopment Agency (CRA) rules require the Board to confirm the appointment of the CRA Executive Director. City Manager Jon Jennings is requesting that the CRA confirm him as the Interim Executive Director until the vacant position is filled. In response to questions, the City Manager said he anticipates fulfilling the responsibility for two to three months. Filling the position will be dictated by the market; filling positions has not been easy. He said there is great CRA staff support and the responsibilities dovetails with the city manager position. One individual spoke in support. Trustee Beckman moved to confirm the City Manager’s appointment of Jon Jennings as the Interim CRA Executive Director. The motion was duly seconded and carried unanimously. 4.2 Authorize the Community Redevelopment Agency (CRA) Director to prepare a Loan to Grant Agreement with 703 Jones Street, LLC, in an amount not to exceed $1,000,000 for building improvements to implement the CRA Vacancy Reduction Grant Program (Part A and B) and authorize the appropriate officials to execute same. The purpose of this item is to request authorization for the CRA Director to prepare a loan to grant agreement with 703 Jones Street, LLC in an amount not to exceed $1,000,000 for interior and exterior building improvements as part of the CRA’s Vacancy Reduction grant program (Part A & B). Program Background On April 12, 2021, the CRA Trustees adopted a new grant program to reduce vacancy by encouraging private investment to establish new, pedestrian generating uses for existing ground floor, commercial properties within the CRA district. The program has two parts with a total program budget of $1 million dollars for 2021 and 2022. Part A funds interior and exterior buildouts of vacant spaces to attract the following kinds of businesses: • Retail and restaurant businesses • Personal Services Industries (e.g., barber and beauty shops, health spas, dance studios, photography and art studios, tailoring, and other similar services) • Galleries, theaters, other cultural and community gathering spaces Applications must include a concept site plan, interior and exterior concept plans, a narrative description of the proposed improvements, description of the future tenant/use, project timeline, and a scope of work with a minimum of two quotes from qualified vendors for completing the work. The total project cost is Draft Community Redevelopment Agency Meeting Minutes May 16, 2022 Page 4 City of Clearwater determined by the total costs of eligible grant expenses. The applicant must match the grant amount dollar for dollar on eligible expenses. The maximum grant amount per project for Part A is $500,000, which requires a total project cost of a minimum of $1,000,000. Part B provides additional funding for renovations and the purchase of specialty equipment for tenants and/or uses that will serve as a unique destination in downtown. This section requires the applicant submit additional information that illustrates how the proposed tenant will serve as a catalyst for an increased number of visitors downtown. The maximum grant amount per project for Part B is $500,000 which requires a total project cost of a minimum of $1,000,000. Matching funds cannot be counted twice. Any matching funds used for a Part A grant, cannot be used for Part B grant. Applicant Request The applicant has applied for a $1 million dollar grant from the CRA to renovate approximately 18,000 square feet of vacant and underutilized space and construct and additional 8,500 square feet of space to support an audio-visual immersive museum with a focus on sports memorabilia. The estimated total project cost is $3,405,785. The project will be a complete renovation including new facades, new roof, windows, doors, electrical, mechanical, plumbing, HVAC, floor system and a fire sprinkler system. The current request does not include any kitchen equipment. 703 Jones Street, LLC is the owner of the building. They will lease to ArtsDistrict. Steve Stellar is the authorized decision maker for 703 Jones Street, LLC. The applicant believes that the immersive museum as an art meets technology hub is a catalytic use and qualifies for a Part B grant. Staff Recommendation The application and supplemental materials for Part A and B are substantially complete. The proposed use of an immersive museum, the building improvements and the project location are consistent with the goals and objectives of the 2018 Downtown Redevelopment and 2021-2023 CRA Strategy. Specifically: 2018 Downtown Redevelopment Plan Objective 3F: Promote the visual and performing arts. Objective 3G: Create and activate space to work as signature destinations, including civic plazas, markets, and retail gathering places that promote economic growth for Downtown. Objective 4A: Encourage redevelopment that contains a variety of building forms and styles. CRA 2021-2023 Strategy Focus Area Two: Increase investor confidence Objectives: 2.A. Attract $50 million dollars in private investment and 2.D. Reduce the number of ground floor, vacant commercial buildings by 10%. Focus Area Three: Placemaking and Placekeeping Objective: 3.C. Improve the physical appearance of blighted residential and commercial properties. Draft Community Redevelopment Agency Meeting Minutes May 16, 2022 Page 5 City of Clearwater The quality of the proposed improvements and use to reduce visual blight and prepare the building for occupancy justify a full Part A grant award. ArtsDistrict is a world class immersive arts, technology and entertainment hub which will be unique to downtown. The programming will occur in a sports themed interactive museum, a 360-degree rooftop theatre and wonder room. The sports memorabilia attraction is one of a kind utilizing pieces from the Sports Immortals, one of largest curated sports memorabilia collection in the world. The collection includes more than one million items and is recognized by the Smithsonian Institute as the most outstanding collection in all of sports. ArtsDistrict has a 20-year history creating immersive shows and venues capitalizing on world renowned artists and highest quality audio visual equipment. In addition, ArtsDistrict plans on utilizing local artists as partners assisting in the creation of an archive of ever-changing installations. The submitted proforma anticipates at the least, 4,650 tickets sold each week attracting more than 240,000 visitors to downtown each year. The unique world-renowned art technology hub providing a first-class high quality immersive audio-visual experience justify a full Part B grant award. The applicant proposes a financial match from private equity sources and can meet the required 18-month construction timeline post permitting. Staff recommends establishing grant approval of up to a maximum of $1,000,000 for the proposed project and moving forward with developing a grant agreement. Contingent Approval If the CRA Trustees wish to move forward with awarding a five-year loan to grant agreement for Part A and B, the following conditions will apply: 1. A final project budget including cost estimates and matching funds for eligible interior and exterior improvements that will establish the final CRA grant amount not to exceed 1 million dollars. 2. A building permit 3. A Clearwater Business Tax Receipt 4. A tenant lease 5. A payment schedule 6. A commitment to a five-year loan to grant agreement secured through one or more of the following methods: • A mortgage on the property • A personal guarantee • A promissory note APPROPRIATION CODE AND AMOUNT: Funds are available in CRA project code 3887552-R2003 ED-City. ArtsDistrict Representative Jake Feldman provided a PowerPoint presentation. In response to questions, Mr. Feldman said in regard to Limitless AI, what is being done in Brooklyn is the first of its kind. There are other Draft Community Redevelopment Agency Meeting Minutes May 16, 2022 Page 6 City of Clearwater immersive arts destinations; one in Miami and one in Paris, France. He said there is no single hub dedicated to the creation of new IP in this way, using only digital projection. The Sports Immortals exhibit is one of a kind. He said the sport memorabilia exhibition hall would be a launching pad for similar exhibitions around the country. The sports memorabilia will be installed and integrated into the experience. Although details have not been finalized, it is anticipated there will be an admission price for each exhibit, with the opportunity to bundle exhibits. Sustainable features will be implemented after access to the facility is obtained. The private equity backers in Brooklyn committed to continue their support; ArtsDistrict's technology partners will finance some of the technology features. He said the company has resources to seek any gap funding. Assistant CRA Director Matt Jackson said the reimbursement grant is provided after the building permits have been approved and the agreement executed. Planning staff has met with the applicant. Mr. Feldman said the facility in Brooklyn was retrofitted to absorb the vibrations created by trucks on the main thoroughfare. The flow capacity is 450 and the maximum capacity on the rooftop is 200. He said there will also be an opportunity to stream 360-events via subscriptions or pay per view. Mr. Jackson said the proposed use does not require parking; the Garden Street parking garage will be available. One individual spoke in support. Trustee Bunker move to authorize the Community Redevelopment Agency (CRA) Director to prepare a Loan to Grant Agreement with 703 Jones Street, LLC, in an amount not to exceed $1,000,000 for building improvements to implement the CRA Vacancy Reduction Grant Program (Part A and B) and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4.3 Amend the operating budget for the Community Redevelopment Agency (CRA) for fiscal year 2021-2022 and adopt CRA Resolution 22-01. The purpose of this item is to request approval to amend the CRA’s operating budget to add a new full-time position, CRA Special Events Specialist. The CRA’s main goal is shifting the perception held by the public and investors about downtown to one that encourages investment. Supporting a wide variety of events and programs in downtown is a key part of our strategy. In anticipation of Coachman Park opening in summer 2023 and the continued closure of Cleveland Street, the CRA wishes to provide a greater number of events and greater assistance to event producers to ensure a full calendar of activities Draft Community Redevelopment Agency Meeting Minutes May 16, 2022 Page 7 City of Clearwater throughout the year. The proposed position will serve as a liaison to Parks and Recreation staff, event producers and merchants to help coordinate their efforts as well as produce new CRA events. The current Interlocal agreement allocated up to $115,000 to cover the cost of new and temporary employees for this fiscal year. Exhibit A shows the transfer of funds from Salaries and Benefits to City General Fund - Administrative which will cover the cost of the proposed position. Trustee Teixeira moved to amend the operating budget for the Community Redevelopment Agency (CRA) for fiscal year 2021-2022 and adopt CRA Resolution 22-01. The motion was duly seconded and upon roll call, the vote was: Ayes: 5 - Chair Hibbard, Trustee Beckman, Trustee Bunker, Trustee Allbritton and Trustee Teixeira 4.4 Annual Financial Report. Presentation of fiscal year 2021 annual financial report by external auditors Carr, Riggs and Ingram representative David Alvarez provided a PowerPoint presentation and said there were no findings to communicate. Trustee Allbritton moved to accept the Annual Financial Report. The motion was duly seconded and carried unanimously. CRA Report In response to a question, Interim CRA Executive Director Jon Jennings said the messaging that went out to the community regarding the Mercado should have stated that the project was being postponed until the anticipated cost comes down. Staff is seeking a less costly solution for the shade component. The plan is to pour the concrete and finish the Mercado project. He said the East Gateway needs this type of investment. Assistant CRA Director Matt Jackson said the shade structure was approximately $200,000 over the original $500,000 estimate. Mr. Jennings said Council could approve the use of general fund reserves to fund the $200,000 gap. It was suggested that staff confirm if the CRA is contractually obligated to proceed with the concrete pourer. Staff was directed to pause the project, not pour the concrete, and come back with other shade structure Draft Community Redevelopment Agency Meeting Minutes May 16, 2022 Page 8 City of Clearwater alternatives. In response to questions, Mr. Jackson said the Ray Cassano project on Myrtle Avenue and Chestnut Street is in the building permit phase. The Dueling Pianos is in the building permit phase; there were issues with accessibility on the second floor. Mr. Jennings said staff is working on a plan for Pride Month and Juneteenth. In response to a suggestion to allow food trucks in downtown, concerns were expressed that brick-and-mortar restaurants in downtown would be negatively impacted if food trucks were permitted on a consistent basis and that the downtown merchants would oppose the idea. 5. Adjourn The meeting adjourned at 8:53 a.m. Chair Community Redevelopment Agency Attest City Clerk Draft Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#22-0679 Agenda Date: 7/18/2022 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.1 SUBJECT/RECOMMENDATION: Approve the transfer of $1,500,000 in Community Redevelopment Agency tax increment financing (TIF) funds to pay for impact fees and connection fees generated by the redevelopment partnership between the City, The DeNunzio Group LLC, and Gotham Property Acquisitions, LLC, and authorize the appropriate officials to execute same. SUMMARY: On May 5, 2022, City Council directed the City Manager and City Attorney to take all necessary actions to identify a redevelopment concept and team(s) for the former City Hall site and former Harborview Center site to present to Clearwater voters for consideration at a November 8, 2022 referendum. Staff recommended disposition of the properties through an open call for development concepts. After reviewing each of the three responses, on June 16, 2022, the City Council unanimously selected Gotham Property Acquisitions and The DeNunzio Group as the City’s development partners for these properties. In the 2018 Clearwater Downtown Redevelopment plan Policy 11 states, “The CRA may consider reimbursement of impact fees and permit fees as an incentive for redevelopment projects that are consistent with this Plan.” The redevelopment proposal for these sites, which includes new rental housing and ground floor commercial uses, is consistent with the objectives of the downtown plan including: Objective 1B: Support the relocation of Clearwater City Hall to another location within Downtown Area Plan. Allowing the former City Hall site, which is in a prime waterfront location, to be utilized for mixed-use, high-rise development with residential and commercial ground floor uses. Objective 1C: Osceola Avenue should develop as an active street frontage. The pedestrian experience from Downtown to the waterfront will be active and engaging. Objective 1G: Continue to utilize a variety of incentives to encourage the construction of new residential uses to locate Downtown. This item seeks approval to transfer one million five hundred-thousand dollars ($1,500,000) from the Agency’s TIF to a third-party escrow account for the purpose of offsetting and paying all impact fees and utility connection fees that will be owed to the City as a result of this project. The transfer to a third-party escrow account shall occur in a manner acceptable to the City’s Finance Director. If approved by the Agency, the escrow will be released to the City on the developers’ behalf as the fees become due, provided that each of the following contingencies have occurred: (1) Page 1 City of Clearwater Printed on 7/13/2022 File Number: ID#22-0679 approval of changes to the City Charter at the November 2022 election; (2) City Council approval of a forthcoming development agreement and a forthcoming purchase and sale agreement on July 21, 2022 or August 4, 2022, and (3) City Council approval of a forthcoming Purchase and Sale agreement. Any unused portion or remainder in the escrow account shall revert to the Agency after payment of all fees described in this agenda item. APPROPRIATION CODE AND AMOUNT: Funding for this transfer will be included in the fiscal year 2022/23 proposed CRA budget in project R2003, Economic Development - City. Page 2 City of Clearwater Printed on 7/13/2022 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#22-0680 Agenda Date: 7/18/2022 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.2 SUBJECT/RECOMMENDATION: Provide staff direction on future budget allocations for affordable and workforce housing in the downtown CRA. SUMMARY: Page 1 City of Clearwater Printed on 7/13/2022