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08/15/2022
Monday, August 15, 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 August 15, 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 options: 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 ClearwaterCRA@myclearwater.com. All comments received by 5 p.m. the day before the meeting (August 14) 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. Individuals with disabilities who need reasonable accommodations to effectively participate in this meeting are asked to contact the City Clerk at (727)562-4092 or rosemarie.call@myclearwater.com in advance. 1. Call To Order 2. Approval of Minutes 2.1 Approve the minutes of the July 18, 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 an Interlocal Agreement between the City of Clearwater and the Community Redevelopment Agency (CRA) to provide staffing and administrative services for the CRA, provided for the reimbursement of certain expense by the CRA to the City, and authorize the appropriate officials to execute same. Page 2 City of Clearwater Printed on 8/10/2022 August 15, 2022Community Redevelopment Agency Meeting Agenda 4.2 Approve an Interlocal Agreement between the Clearwater Community Redevelopment Agency (CRA) and the City of Clearwater to provide CRA funding in Fiscal Year 2022-2023 in the amount of $266,703 to underwrite the cost of additional Community Policing services by the Clearwater Police Department in the Downtown Gateway District, Prospect Lake District, and the Downtown Core District, encompassed by the CRA to address quality of life issues, drug dealing, prostitution, and homelessness and authorize the appropriate officials execute same. 4.3 Approve the Interlocal Agreement with the Downtown Development Board (DDB) to provide personnel, administrative and management services during Fiscal Year 2022-2023 in the amount of $81,504.18 and refund the CRA tax increment fee of $335,643.37 and authorize the appropriate officials to execute same. 4.4 Approve a purchase contract for the City of Clearwater Community Redevelopment Agency (CRA) to purchase real property located at 107 S. Osceola Avenue, Parcel No. 16-29-15-20358-002-0110, with a purchase price of $1,850,000.00 and total expenditures not to exceed $20,000.00 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 4.5 Approve the Business Renovation grant program for property owners and tenants to improve the visual appearance of commercial properties through exterior and interior improvements and authorize the appropriate officials to execute same. 5. Director's Report 6. Adjourn Page 3 City of Clearwater Printed on 8/10/2022 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#22-0621 Agenda Date: 8/15/2022 Status: Agenda ReadyVersion: 1 File Type: MinutesIn Control: Community Redevelopment Agency Agenda Number: 2.1 SUBJECT/RECOMMENDATION: Approve the minutes of the July 18, 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 8/10/2022 Community Redevelopment Agency Meeting Minutes July 18, 2022 Page 1 City of Clearwater City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 Meeting Minutes Monday, July 18, 2022 8:00 AM Main Library - Council Chambers Community Redevelopment Agency Draft Community Redevelopment Agency Meeting Minutes July 18, 2022 Page 2 City of Clearwater Roll Call Present 5 - Chair Frank Hibbard, Trustee Kathleen Beckman, Trustee Mark Bunker, Trustee David Allbritton, and Trustee Lina Teixeira Also Present – Jon Jennings – Interim CRA Executive Director, 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 The meeting was called to order at 8:00 a.m. 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. Trustee Allbritton moved to approve the minutes of the May 16, 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 – None. 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. 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 Draft Community Redevelopment Agency Meeting Minutes July 18, 2022 Page 3 City of Clearwater 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) 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. In response to questions, Consultant Amanda Thompson said The Nolen development received funds for site cleanup. The City Attorney said developers had asked in order for them to ensure successful financing, they needed to know that public commitments made by the CRA or the City would not be withdrawn. Specifically, they asked that Draft Community Redevelopment Agency Meeting Minutes July 18, 2022 Page 4 City of Clearwater CRA allocations be placed in an escrow account. He said the funds placed in escrow may earn a trivial interest amount. The funds are expected to be in escrow for approximately two years. The money will be released to the City when the impact fees are due when the building permits are issued, which will occur prior to closing on the real estate. He said the developer will not spend out of pocket for the permit fees since the fees will be released to the City. The City Attorney said the CRA can only reimburse or pay for certain types of fees. The City's impact fees are primarily 1) water and sewer impact fees, and 2) multimodal impact fee. The CRA is allowed to offset those impact fees because they fall under the public works category within the CRA areas. He said since the statute was amended in 2019, the CRA no longer has a basis to spend money on permit fees. The City does provide steep discounts available if the developers choose to utilize private providers for the building review process. Ms. Thompson said the funding will come out of the new property tax allocations on October 1, 2022 and will not impact any allocation in process or currently approved. Trustee Beckman moved to 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. The motion was duly seconded and carried unanimously. 4.2 Item Withdrawn Interim CRA Executive Director Jon Jennings said interviews for the CRA Executive Director are being conducted this week and staff expects to finalize a recommendation for the Trustees soon. He said the Trustees will have an opportunity to meet the finalists. He said he met with Pinellas County regarding the City taking over the maintenance of the Pinellas Trail; the County is responsible for maintaining the trail. Staff is looking at what the City can do to significantly upgrade the conditions of the trail. He said before the City addresses the Trail's economic impact, upgrading the conditions of the trail must be handled first. It was stated that the County is responsible for maintenance of the asphalt and that the City has nothing around its portion of the trail. In response to a comment, Consultant Amanda Thompson said the Draft Community Redevelopment Agency Meeting Minutes July 18, 2022 Page 5 City of Clearwater placemaking grant would target pop-up retail around the trail; anyone may apply. The Downtown Development Board (DDB) has allocated funds for design of the Pinellas Trail, since it located in the DDB's district. DDB funds would be used for potential improvements within the right-of-way and on adjacent properties. In response to a question, Mr. Jennings said he met with the East Gateway Neighborhood leadership regarding the Mercado design and the planning effort that was supported by the neighborhood ten years ago. Those who have recently moved into the neighborhood may not be as supportive of the planning effort. He said he is reviewing the information that was proposed originally and go back to the neighborhood and make a final decision in order for the project to move forward. He said staff will meet with the neighborhood and determine what should be Mercado's placeholder (i.e., grass or cement). 5. Adjourn The meeting adjourned at 8:23 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#22-0786 Agenda Date: 8/15/2022 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.1 SUBJECT/RECOMMENDATION: Approve an Interlocal Agreement between the City of Clearwater and the Community Redevelopment Agency (CRA) to provide staffing and administrative services for the CRA, provided for the reimbursement of certain expense by the CRA to the City, and authorize the appropriate officials to execute same. SUMMARY: The Clearwater Downtown Redevelopment Plan establishes that Tax Increment Funding (TIF) funds received by the CRA may be used for certain redevelopment activities. As per Section 163.387, Florida Statues allow that money in the redevelopment trust fund may be expended to support the activities of the Community Redevelopment Agency, including providing for staff. The CRA partners with the City to provide staffing and other administrative services (IT, Legal etc.) to implement the Downtown Redevelopment Plan. The CRA agrees to provide TIF funding in a total amount not to exceed $691,422 for this contract year. This amount includes $661,392 for existing staffing and $30,030 for other administrative services. These amounts are subject to adjustment and approval in the CRA budget each year. The CRA will only pay the City for actual funds spent. Any unspent funds carry over to the next fiscal year and are reallocated as part of an amended budget request. Page 1 City of Clearwater Printed on 8/10/2022 INTERLOCAL AGREEMENT This Interlocal Agreement is made and entered into this ________ day of _____________, 2022 by and between the Community Redevelopment Agency of the City of Clearwater, Florida (CRA), a redevelopment agency established pursuant to law, and the City of Clearwater (CITY), a municipal corporation of the State of Florida. WHEREAS, this Agreement is made and entered between the parties pursuant to Section 163.01, Florida Statutes, the “Florida Interlocal Cooperation Act of 1969”; and WHEREAS, on May 16, 2016, the Community Redevelopment Agency approved the City Manager’s hiring of a CRA Director as a City employee; and WHEREAS, the City will provide additional staff to assist the CRA director, for which the CRA agrees to reimburse the City; and WHEREAS, Section 163.387, Florida Statutes, allows that moneys in the redevelopment trust fund may be expended from time to time for undertakings of a community redevelopment agency, including providing for staff, as described in the community redevelopment plan; and WHEREAS, the Clearwater Downtown Redevelopment Plan establishes that funds received by the CRA through the use of Tax Increment Financing (TIF) may be used for certain redevelopment activities; and WHEREAS, the CRA wishes to enter into an Interlocal Agreement with the City for the City to provide staff to the CRA and outlining the scope of services and responsibilities of the parties. NOW THEREFORE, in consideration of the covenants made by each party to the other and of the mutual advantages to be realized by the parties hereto, the CRA and the CITY agree as follows: Section 1. Term. This Interlocal Agreement will be effective starting October 1, 2022 and will remain in effect unless terminated by either one of the parties. Section 2. Intent. It is the intent of the parties that the TIF funds paid to the CITY by the CRA pursuant to Section 163.387(6)(a), Florida Statutes, be used to provide the following staff in support of the CRA: INTERLOCAL AGREEMENT TO PROVIDE STAFF, EQUIPMENT AND OFFICE SPACE TO CRA 2 A. Pay the salary and benefits for the CRA Director for the Fiscal Year 2022/2023. This amount may increase annually and is subject to approval in the CRA budget each year. B. Provide for the salary and benefits of additional full-time, part-time and temporary CRA staff that are subject to approval in the CRA budget each year. Section 3. Responsibilities of the CRA Function: Provide TIF funding in the total amount not to exceed $691,422 for the contract year, said funds to be utilized by the City will be allocated in the following manner: A. An amount not to exceed $661,392 to pay the salary and benefits for CRA staff B. $30,030 to pay for City Internal Services These amounts are subject to adjustment and approval in the CRA budget each year. Section 4. Responsibilities of the CITY Scope of Duties: The services that the CITY will provide will be carried out by the City Manager. These services are: A. Provide staffing, Information Technology services, telephone services, Legal services, City Clerk services and other general services and office space in for the CRA. Adopt operational policies necessary to support the work of the CRA. Section 5. Notice. Sixty (60) days notice by either party to the other pursuant to the Interlocal Agreement shall be given in writing and hand-delivered or mailed as follows: Clearwater Community Redevelopment Agency Attn: Jon Jennings, CRA Interim Director PO BOX 4748 Clearwater, Florida 33758 Telephone: (727) 562-4039 INTERLOCAL AGREEMENT TO PROVIDE STAFF, EQUIPMENT AND OFFICE SPACE TO CRA 3 City of Clearwater Attn: City Manager PO BOX 4748 Clearwater, Florida 33758 Telephone: (727) 562-4046 Section 6. Entire Agreement. This document embodies the whole Agreement of the parties. There are no promises, terms, conditions or allegations other than those contained herein. This Agreement shall be binding on the parties, their successors, assigns and legal representatives. Section 7. Indemnification. The CRA and the CITY agree to be fully responsible for their own acts of negligence, or their respective agents’ acts of negligence when acting within the scope of their employment and agree to be liable for any damages resulting from said negligence only to the extent permitted by Section 768.28, Florida Statutes. Nothing herein is intended to nor shall it be construed as a waiver of any immunity from or limitation from liability that the CRA and the CITY are entitled to under the doctrine of sovereign immunity (Section 768.28, Florida Statutes). Nothing herein shall be construed as consent by the CRA or the CITY to be sued by third parties in any manner arising out of this Agreement. Section 8. Filing Effective Date. As required by Section 163.01(11), Florida Statutes, the Interlocal Agreement shall be filed with the Clerk of the Circuit Court of Pinellas County after execution by the parties, and shall take effect upon the date of filing. IN WITNESS WHEREOF, the parties hereto, or their law representatives, have executed this agreement as the date first above written. COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA By: _________________________ Frank V. Hibbard, Chairperson INTERLOCAL AGREEMENT TO PROVIDE STAFF, EQUIPMENT AND OFFICE SPACE TO CRA 4 Approved as to form: Attest: ____________________________ _______________________________ Michael Fuino Rosemarie Call CRA Attorney City Clerk Countersigned: CITY OF CLEARWATER, FLORIDA ___________________________ By:_________________________ Frank V. Hibbard Jon Jennings Mayor City Manager Approved as to form: Attest: ____________________________ _______________________________ Owen Kohler Rosemarie Call Assistant City Attorney City Clerk Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#22-0787 Agenda Date: 8/15/2022 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.2 SUBJECT/RECOMMENDATION: Approve an Interlocal Agreement between the Clearwater Community Redevelopment Agency (CRA) and the City of Clearwater to provide CRA funding in Fiscal Year 2022-2023 in the amount of $266,703 to underwrite the cost of additional Community Policing services by the Clearwater Police Department in the Downtown Gateway District, Prospect Lake District, and the Downtown Core District, encompassed by the CRA to address quality of life issues, drug dealing, prostitution, and homelessness and authorize the appropriate officials execute same. SUMMARY: Quality of life issues, drug dealing, prostitution, and homelessness, all negatively impact the re-development plans. Additional community policing resources are needed to effectively address these issues above and beyond the level provided by routine road patrol functions. An allowable funding source of this active item is the use of CRA Tax Increment Financing (TIF) funds. Florida Statutes allows for the use of TIF funds for “community policing innovations” in the Community Redevelopment Areas. The CRA and Clearwater Police Department have reached an agreement on a proposed scope of services and terms as delineated in the Interlocal Agreement. Included in the scope is the delineation of specific, measurable crime reduction targets by which to monitor the success of the initiative as well as providing clear language required by statute assuring that the resources are applied to the CRA/Downtown Gateway area. APPROPRIATION CODE AND AMOUNT: Funding for this Interlocal Agreement will be from CRA Project Code R2001 Community Policing. Page 1 City of Clearwater Printed on 8/10/2022 7/25/2022-12:48 PM 1 Officer 1 Officer 2 Officers Base Salary 76,968.00 78,037.00 155,005.00 Pension 16,088.00 16,312.00 32,400.00 Social Security 1,048.00 1,121.00 2,169.00 Major Medical 14,615.00 11,373.00 25,988.00 Life Insurance 9.00 9.00 18.00 Workers Compensation 1,628.74 1,628.75 3,257.49 110,360.00 108,480.00 218,840.00 Fuel $7,863.04 TOTAL 226,703.04 Police Department - CRA Funded Officers For FY 2022/23 EXHIBIT "A" Position Enhancement Fact Sheet G4549 Period Amount Fuel for periods 1-6 $1,965.76 Amount for 6 months $1,965.76 Times Two:$3,931.52 Summary Results: I pulled the first six months of fuel costs for G4549 and then doubled it for the total amount for the year. INTERLOCAL AGREEMENT This Interlocal Agreement is made and entered into this ________ day of _____________, 2022 by and between the Community Redevelopment Agency of the City of Clearwater, Florida (CRA), a redevelopment agency established pursuant to law, and the City of Clearwater (CITY), a municipal corporation of the State of Florida. WHEREAS, this Agreement is made and entered between the parties pursuant to Section 163.01, Florida Statutes, the “Florida Interlocal Cooperation Act of 1969”; and WHEREAS, Section 163.387(6)(c)(8) of the Florida Statutes allows for the use of Tax Increment Funding (TIF) funds for community policing innovations in Community Redevelopment Areas; and WHEREAS, the CRA has ascertained that the Downtown Gateway District, Prospect Lake District, and Downtown Core District, continue to experience a critical need for an enhanced community policing presence in order to specifically reduce drug dealing, prostitution and street crimes in the target area, and address quality of life issues; and WHEREAS, the CRA and the CITY first entered into an Interlocal Agreement during the Fiscal Year 2008-2009 in order to provide for the CRA's financial contribution to an additional community policing presence by the CITY in the Downtown Gateway area above and beyond the current activity levels; and WHEREAS, the CRA has funded two police officers for Fiscal Years 2012-2013, 2013-2014, 2014-2015, 2015-2016, 2016-2017, 2017-2018, 2018-2019, 2019-2020, 2020-2021 and 2021-2022 and wants to continue the use of TIF funds to fund the program; and WHEREAS, the CRA and the CITY recognize that police officers encounter persons with a wide variety of social, mental and physical health needs and require additional support to connect people with options other than jail, emergency rooms or shelters; and WHEREAS, the CRA and the CITY want to enter into another Interlocal Agreement during the Fiscal Year 2022-2023, outlining the scope of services and responsibilities of the parties. NOW THEREFORE, in consideration of the covenants made by each party to the other and of the mutual advantages to be realized by the parties hereto, the CRA and the CITY agree as follows: Interlocal Agreement between CRA/CPD FY 2022/23 2 Section 1. Term. The term of this Interlocal Agreement will be October 1, 2022 through September 30, 2023. Section 2. Intent. It is the intent of the parties that the TIF funds paid to the CITY by the CRA pursuant to Section 163.361(1), Florida Statutes, be used to provide a more visible community policing presence within the Community Redevelopment Area which includes the Downtown Gateway District, Town Lake District, and Downtown Core District Section 3. Responsibilities of the CRA Function: Provide TIF funding in the total amount of $226,703.04 for the contract year, said funds to be utilized by the Clearwater Police Department (CPD) to provide the additional community policing presence, to be allocated in the following manner: A. $218,840 to pay for the salaries, and benefits for two (2) police officers for the contract year. Exhibit "A," Position Enhancement Fact Sheet, attached hereto and incorporated by reference, contains detailed specifications on salary and benefits. B. $7,863.04 the estimated fuel cost for the contract year for a police vehicle used by the two (2) police officers within the Community Redevelopment Area. Section 4. Responsibilities of the CITY Scope of Duties. The services that the CITY will provide will be carried out by the CPD. These services are: A) Implementation of a Law Enforcement Strategy in the Community Redevelopment Area as follows: Goal 1: Reduce the sale of illegal narcotics and reduce the prevalence of prostitution. Objective 1: Eliminate sales and distribution of illegal narcotics. Tasks: a) Identify street level dealers which may be engaging in sales of illegal narcotics; Interlocal Agreement between CRA/CPD FY 2022/23 3 b) Gather intelligence information through proactive law enforcement techniques, utilizing undercover techniques and surveillance equipment; and c) Conduct regular plainclothes operations to determine if illegal narcotics are being offered for sale in the Community Redevelopment Area. Outcome Measures: a) Conduct a minimum of six (6) operations to determine if individuals in the Community Redevelopment Area are selling illegal narcotics. b) File criminal charges against anyone where probable cause is established that they are selling illegal narcotics. c) If any retail establishments are found to be engaging in the sales of illegal narcotics, the Florida Division of Alcoholic Beverages and Tobacco will be notified so that administrative action may be taken against those establishments which hold licenses to sell alcoholic beverages. Objective 2: Reduce incidence of prostitution and solicitations by "Johns" in the target area. Tasks: a) Conduct prostitution operations in the Community Redevelopment Area utilizing police officers as decoys; b) Utilize directed patrols to discourage prostitutes and "Johns" from frequenting the area; and c) Seek prosecution enhancements for repeat offenders that commit prostitution and solicitation offenses when applicable. Outcome measures: a) Conduct minimum of six (6) prostitution operations annually in the Community Redevelopment Area. b) File criminal charges against anyone where probable cause is established that they are either engaging in or soliciting prostitution. Goal 2: Address homeless issues in the Community Redevelopment Area. Objective 1: Participate in the city’s homeless initiative. Interlocal Agreement between CRA/CPD FY 2022/23 4 Tasks: a) Utilize directed patrol in areas known to be frequented by homeless individuals for the purpose of locating homeless encampments and identifying homeless persons new to the area or not known to the CRA officers; b) Enforce statutes and ordinances against public drinking, public urination, loitering or prowling, etc.; c) Utilize the “no trespass” affidavit program when authorized to address public safety interests in the target area; and d) Participate in activities/programs related to homelessness, as appropriate. Outcome measure: a) 100% of reported or observed violations of criminal law or ordinances will result in arrest, report, citation, warning, or referral to the appropriate social services agency; b) 100% of observed or reported trespass violations will result in trespass warnings, or arrest when authorized by Florida State Statute within the Community Redevelopment Area; c) CRA officers will complete Field Interview Reports (FIRs) in the appropriate circumstances. Goal 3: Improve safety and security of residents and businesses in the Community Redevelopment Area. Objective 1: Enhance code enforcement activities and identify properties meeting the criteria for referral to the Nuisance Abatement Board. Tasks: a) Coordinate with the CRA and the City's Code Compliance Department to enhance code enforcement in the target area relative to properties that are in disrepair and negatively impact the quality of life in the East Gateway; and b) Identify those properties meeting the criteria for referral to the Nuisance Abatement Board to discourage criminal behavior at those locations. Outcome Measures: a) Conduct regular inspections of properties that are in disrepair and negatively impact the quality of life in the Interlocal Agreement between CRA/CPD FY 2022/23 5 East Gateway, on a schedule as agreed upon the CRA, Code Enforcement Inspector, and CPD; and b) Identify and report to the CRA negative environmental factors (need for improved street lightning, vacant buildings, neglected properties, etc.) c) Identify and refer all properties determined to meet the criteria for referral to the Nuisance Abatement Board and provide the necessary documentation to support that referral. Objective 2: Enhance the relationship between the residential neighborhoods and the police department and increase the perception of safety through enhanced community policing efforts. Tasks: a) Conduct regular park, walk and talk (PWT) activities in the Community Redevelopment Area; and b) Make citizen contacts during PWT activities for the purpose of community relations and information gathering. Outcome Measures: a) CRA officers will conduct a minimum of four (4) PWT activities in the Community Redevelopment Area per week. b) CRA officers will document the outcome of the PWT activities in the TriTech clearance notes for that PWT. B) In order to carry out the Law Enforcement Strategy above, the CPD will provide the following: 1. Two (2) fully-equipped police officers to provide law enforcement services to the target area defined as the East Gateway for a minimum of 40 hours per week. 2. Specific duties, activities, and responsibilities: a) The officers will be assigned to a Community Policing Team with geographical responsibility for the Community Redevelopment Area only; b) The Team assignment will always ensure coverage by two (2) officers; c) Schedules of the officers will vary based on the determination of the CRA and CPD management to best serve the residents and business owners in the Community Redevelopment Area. CRA shall be Interlocal Agreement between CRA/CPD FY 2022/23 6 notified of significant changes of officers’ schedules or assignments; d) Officers will patrol by either vehicles, foot, or bicycles; e) A report of police activities and statistical information will be provided to the CRA on a monthly and yearly basis; and f) The officers selected will be experienced, current members of the CPD. 3. An existing, fully-equipped Police Car. a) All CRA funds pursuant to this agreement will be kept in the CPD's departmental account. b) No charges to the CRA account will be made for activities or hours worked by the two (2) officers outside the Community Redevelopment Area or for equipment used outside the Community Redevelopment Area. c) Other administrative duties as mutually agreed. Section 5. Notice. Sixty (60) days notice by either party to the other pursuant to the Interlocal Agreement shall be given in writing and hand- delivered or mailed as follows: Clearwater Community Redevelopment Agency Attn: Jon Jennings, CRA Interim Director PO BOX 4748 Clearwater, Florida 33756 Telephone: (727) 562-4072 City of Clearwater Attn: Jon Jennings, City Manager PO BOX 4748 Clearwater, Florida 33756 Telephone: (727) 562-4046 Section 6. Entire Agreement. This document embodies the whole Agreement of the parties. There are no promises, terms, conditions or allegations other than those contained herein. This Agreement shall be binding on the parties, their successors, assigns and legal representatives. Section 7. Indemnification. The CRA and the CITY agree to be fully responsible for their own acts of negligence, or their respective agents’ acts of negligence when acting within the scope of their employment and agree to be liable for any damages resulting from said negligence only to the Interlocal Agreement between CRA/CPD FY 2022/23 7 extent permitted by Section 768.28, Florida Statutes. Nothing herein is intended to nor shall it be construed as a waiver of any immunity from or limitation from liability that the CRA and the CITY are entitled to under the doctrine of sovereign immunity (Section 768.28, Florida Statutes). Nothing herein shall be construed as consent by the CRA or the CITY to be sued by third parties in any manner arising out of this Agreement. Section 8. Maintenance of Effort. The expenditures authorized by this Agreement are solely and exclusively to increase community policing activity and resources. The City agrees that no diminishment of existing police efforts in the East Gateway will occur as a result of this agreement. Section 9. Filing Effective Date. As required by Section 163.01(11), Florida Statutes, the Interlocal Agreement shall be filed with the Clerk of the Circuit Court of Pinellas County after execution by the parties and shall take effect upon the date of filing. IN WITNESS WHEREOF, the parties hereto, or their law representatives, have executed this agreement as the date first above written. COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA By: ______________________________ Frank V. Hibbard, Chairperson Approved as to form: Attest: ____________________________ _______________________________ Michael Fuino Rosemarie Call CRA Attorney City Clerk Interlocal Agreement between CRA/CPD FY 2022/23 8 Countersigned: CITY OF CLEARWATER, FLORIDA ___________________________ By: _____________________________ Frank V. Hibbard Jon P. Jennings Mayor City Manager Approved as to form: Attest: ____________________________ _______________________________ Melissa Isabel Rosemarie Call Assistant City Attorney City Clerk Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#22-0789 Agenda Date: 8/15/2022 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.3 SUBJECT/RECOMMENDATION: Approve the Interlocal Agreement with the Downtown Development Board (DDB) to provide personnel, administrative and management services during Fiscal Year 2022-2023 in the amount of $81,504.18 and refund the CRA tax increment fee of $335,643.37 and authorize the appropriate officials to execute same. SUMMARY: Florida Statutes 163.387 requires all taxing authorities, which includes the DDB, to make an annual appropriation in an amount equal to the incremental increase in the ad valorem revenue within the CRA area. The DDB’s increment payment is $335,643.37 according to the Pinellas County Property Appraiser’s office. In a spirit of cooperation to further the downtown redevelopment plan, the CRA Trustees executed the first Interlocal Agreement in Fiscal Year 1999-2000 to provide personnel, administrative and management services to the DDB and to refund the difference between the increment payment and the management fee. This is the twenty third fiscal year that the CRA would enter into the agreement. Pursuant to Florida Statute 163.01, the CRA and DDB can enter into this agreement in which the DDB agrees to perform certain responsibilities and functions including funding projects and programs consistent with the downtown redevelopment plan. The intent of this agreement is for the DDB and the CRA to work collaboratively on projects and programs that further downtown goals and objectives. The management of the DDB by CRA staff enables the CRA and the DDB to utilize the public dollars more efficiently. The DDB shall pay the CRA $81,504.18 for the services agreed to in the Interlocal Agreement. The DDB approved the Interlocal Agreement at their meeting on August 3, 2022. Page 1 City of Clearwater Printed on 8/10/2022 2022-23 CRA/DDB Interlocal Agreement 1 INTERLOCAL AGREEMENT This Interlocal Agreement is made and entered into this ____ day of __________, 2022, by and between the Community Redevelopment Agency of the City of Clearwater, Florida (CRA), a redevelopment agency established pursuant to law, and the Downtown Development Board (DDB), a special district organized and operating pursuant to the ordinances and laws of the City of Clearwater. WHEREAS, Florida Statutes 163.387 requires all taxing authorities to make an annual appropriation in an amount equal to the incremental increase in the ad valorem revenue within the CRA area; and WHEREAS, the DDB is a taxing authority within the meaning of the statute; and WHEREAS, the CRA and the DDB in the spirit of cooperation desire to offer the downtown constituents the opportunity to utilize more efficiently the public dollars collected for each entity; and WHEREAS, the CRA and the DDB have a special obligation to ensure wise and sound administration of the programs; and WHEREAS, the CRA and the DDB desire to enter into an Interlocal Agreement outlining the scope of services and responsibilities of the parties; and WHEREAS, the CRA and the DDB wish to enter into an Interlocal Agreement pursuant to Florida Statues 163.01, in which the DDB agrees to perform certain responsibilities and functions consistent with and in furtherance of the Downtown Redevelopment Plan, in return for an amount equal to the difference between the increment payment of $334,414.86 and the $81,504.18 the DDB pays the CRA for administration. NOW THEREFORE, in consideration of the covenants made by each party to the other and of the mutual advantages realized by the parties hereto, the DDB and the CRA agree as follows: Section 1. Term. The term of this Interlocal Agreement will be October 1, 2022, through September 30, 2023. Section 2. Intent. It is the intent of the parties that the moneys paid to the CRA by the DDB pursuant to Florida Statute section 163.387, commonly referred to as the tax increment payment, be used to advance the goals and objectives of the Downtown Redevelopment Plan. The CRA shall retain $81,504.18 to offset the cost of administration of the DDB as further described herein. The remaining money shall be returned to the DDB by the CRA in exchange for performance of certain responsibilities and functions by the DDB consistent with and in furtherance of the Downtown Redevelopment Plan. 2022-23 CRA/DDB Interlocal Agreement 2 Section 3. Responsibilities of the DDB. The DDB will promote, facilitate and support activities that sustain, promote and advance downtown revitalization and attract businesses and residents to relocate and stay in the DDB’s district. In furtherance of these goals, the DDB will: a. advise the City of Clearwater (City) and the CRA on policies and procedures which will succeed in bringing more businesses and residents into the downtown district and thus improve its tax base and overall economic conditions; b. survey downtown property owners, residents and businesses to determine needs and attitudes, to monitor progress, to evaluate success or failure of initiatives; c. sponsor community events and encourage public attendance at events in support of downtown merchants and other goals in the Downtown Redevelopment Plan; and d. cooperate with local, state and regional organizations in promoting the downtown district as a destination. Section 4. Responsibilities of the CRA. The services that the CRA will provide are: a. Prepare correspondence for DDB members; b. Maintain all DDB funds in the City’s bank account and with funds segregated for accounting purposes in the City’s records as a separated, interest-earning fund; c. Assist with preparation and monitoring of the annual budget and prepare amendments as necessary; d. Prepare monthly financial reports; e. Prepare agendas and distribute packets to DDB members prior to each meeting; f. Prepare meeting notices for monthly and special DDB meetings; g. Attend meetings and supervise work of Board Reporter who records and transcribes minutes; h. Coordinate committee meetings, if applicable; i. Handle all phone inquiries and follow up on the calls; j. Handle any special mailing notices; k. Serve as coordinator for the DDB special activities; l. Assist in research and implementation of projects initiated by the Board; m. Assist with promoting design related programs to the downtown community; n. Manage loans, contracts and all applicable documents; o. Coordinate field trips and travel arrangements in accordance with the City of Clearwater Travel and Meals Policy; p. Other administrative duties as mutually agreed; q. Coordinate the annual election process in cooperation with the Pinellas County Supervisor of Elections; r. Act as a Liaison to the Pinellas County Property Appraiser, Pinellas County Tax Collector, and DDB legal counsel; 2022-23 CRA/DDB Interlocal Agreement 3 s. Assure that the annual audit is conducted in compliance with requirements of the State of Florida Auditor General; t. Comply with State of Florida Tax Increment Millage Compliance with Chapter 200, Florida Statutes, Sections 218.23, 218.63, Florida Statutes (TRIM); u. Comply with the Florida Department of State Information Services Records Disposition Act; v. Comply with the State of Florida Department of Community Affairs Special District Information Program; w. Comply with the State of Florida Department of Insurance Treasurer’s Public Depositor Annual Report; and x. Coordinate financial disclosure requirements of the State of Florida Commission on Ethics. Section 5. Compensation. In return for the above services, the CRA shall pay to the DDB this difference upon receiving the increment payment from the DDB. The budget for the CRA for services listed in Section 4 above shall be as follows: Personnel and Administration $81,504.18. Section 6. Notice. Any notice by either party to the other pursuant to the Interlocal Agreement shall be given in writing and hand-delivered or mailed as follows: Chairperson, Board of Trustees Community Redevelopment Agency 600 Cleveland Street, Suite 600 Clearwater, Florida 33755 Chairperson Downtown Development Board Post Office Box 4748 Clearwater, Florida 33758-4748 Section 7. Entire Agreement. This document embodies the whole Agreement of the parties. There are no promises, terms, conditions or allegations other than those contained herein. This Agreement shall be binding on the parties, their successors, assigns and legal representatives. Section 8. Filing Effective Date. As required by Section 163.01(11), Florida Statutes, the Interlocal Agreement shall be filed with the Clerk of the Circuit Court of Pinellas County after execution by the parties and shall take effect upon the date of filing. IN WITNESS WHEREOF, the parties hereto, or their lawful representative, have executed this agreement as of the date first above written. 2022-23 CRA/DDB Interlocal Agreement 4 COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA By: ______________________________ Frank V. Hibbard, Chairperson ATTEST: By: ______________________________ Rosemarie Call, City Clerk Approved as to form: __________________________ Michael Fuino Attorney for CRA DOWNTOWN DEVELOPMENT BOARD BY: Paris Morfopoulos, Chairperson Approved as to form: __________________________ Elise K. Winters Attorney for DDB Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#22-0794 Agenda Date: 8/15/2022 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.4 SUBJECT/RECOMMENDATION: Approve a purchase contract for the City of Clearwater Community Redevelopment Agency (CRA) to purchase real property located at 107 S. Osceola Avenue, Parcel No. 16-29-15-20358-002-0110, with a purchase price of $1,850,000.00 and total expenditures not to exceed $20,000.00 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 SUMMARY: The subject property, Parcel Identification Number 16-29-15-20358-002-0110, is owned by Peace Memorial Presbyterian Church of Clearwater, Florida, Inc. (Seller). Seller’s property has a total land area of approximately 36,000 square feet. The property has approximately 225 ft of linear frontage Osceola Ave and approximately 160 ft of linear frontage on Pierce Street. The subject property is adjacent to the former City Hall site. The CRA intends to redevelop the property as a public parking garage with a potential for ground floor commercial use following closing. Certain parking spaces will be reserved for the Seller’s use as follows: 1) no less than 125 spots reserved on each Sunday between 6 a.m. and 2 p.m.; 2) no less than 20 spaces reserved on Monday through Friday between 6 a.m. and 10 p.m.; 3) no less than 75 spaces reserved on Ash Wednesday, Maundy Thursday, and Good Friday between 11:30 a.m. and 9 p.m.; 4) no less than 125 spaces reserved on Christmas Eve between noon and 12:00 a.m.; and 5) no less than 125 spaces reserved on the second Sundays of October through March between 2 p.m. and 5 p.m. In addition, the contract provides that the CRA will: 1) grant the Seller a right of first refusal; 2) provide the Seller with temporary parking after closing and during construction of the parking garage; 3) agree to certain use restrictions on the potential ground floor commercial use; 4) not convey or transfer any interest in the property until after the proposed parking garage is constructed and operational, except for a lease or transfer for any commercial uses; 5) construct and maintain a pedestrian walkway; 6) move the Seller’s existing chiller to a temporary location at the CRA’s expense during construction of the garage and place the chiller on the roof of the garage or another location after construction if the Seller is not able to connect to the County’s chilling system; and 7) permit the Seller to present its construction preferences to the CRA for the CRA’s consideration. The contract provides that these restrictions, which are generally provided for in Exhibit “C” to the agreement, will be Page 1 City of Clearwater Printed on 8/10/2022 File Number: ID#22-0794 memorialized into Covenants, Restrictions, and Grant of Easements agreement that must be executed and entered as a condition to closing. The City is also asked to join on the contract for purposes of Sections 37 and 38, and any obligations the City has under Exhibit “C.” Two independent appraisals were performed on the property. The first, performed by Tobias Realty Advisors, LLC and dated May 4, 2022, valued the property at $4,855,000.00. The second, performed by Entreken Associates, Inc. and dated May 13, 2022, valued the property at $1,620,000.00. The Seller has agreed to the terms of the Contract prior to presentation to the CRA and the City. Should the CRA and the City approve the contract, each via its applicable process, each will execute the contract accordingly. If approved by the CRA and the City, the Seller will present for formal approval by its governing body. If approved by Seller’s governing body, the Seller will execute and deliver a fully executed copy of the Contract to the City and the CRA. Summary of costs for the purchase of the subject property are as follows: Purchase price $1,850,000.00 Closing related costs (not to exceed) $20,000.00 TOTAL $1,870,000.00 APPROPRIATION CODE AND AMOUNT: A fourth quarter budget amendment will provide a transfer of $1,870,000 from capital improvement project R2010, Housing - County, to capital improvement project R2006, Infrastructure - County, to fund this purchase. Page 2 City of Clearwater Printed on 8/10/2022 Pierce Street 40' R/W Lot 23 S Osceola Avenue(40' R/W Per Plat)55' R/WS Fort Harrison Avenue70' R/WAlley 17' R/W Vacated Alley Per OR 17754-1270 Lot 22 Lot 21 Lot 20 Lot 19 Lot 18 Lot 17 Lot 16 Lot 8 Lot 9 Lot 10 Lot 11 Lot 12 Lot 13 Lot 14 Lot 15 John R. Davey et al ReSubdivision,Block B,Plat Book 1, Page 87Alley 28' R/WThe South Half (S12) of Lot Eleven (11) and Lots Twelve (12) through Lot Fifteen (15) in Block "B" of the John R. Davey, et al's Resubdivision of the Earll, Mumford, Ross and Starr's Subdivision of Clearwater, Florida, according to the plat of said Resubdivision as recorded in Plat Book One (1), Page Eighty Seven (87), of the public records of Hillsborough County, Florida, of which Pinellas County was formerly a part. DRAWN BY CHECKED BY DATE DRAWN SECT-TWNSP-RNG SHEETDWG. NO. OF -- CITY OF CLEARWATER ENGINEERING DEPARTMENT Exhibit A Peace Memorial Presbyterian Church Purchase Contract to the CRA & CityJABTLM 07/29/2022 Lgl_2022-16 1 2 16 29S 15E This is not a survey N.T.S. Legal Description Pierce Street 40' R/W Lot 23 S Osceola Avenue(40' R/W Per Plat)55' R/WS Fort Harrison Avenue70' R/WAlley 17' R/W Vacated Alley Per OR 17754-1270 Lot 22 Lot 21 Lot 20 Lot 19 Lot 18 Lot 17 Lot 16 Lot 8 Lot 9 Lot 10 Lot 11 Lot 12 Lot 13 Lot 14 Lot 15 John R. Davey et al ReSubdivision,Block B,Plat Book 1, Page 87Alley 28' R/WLots Sixteen (16) through Lot Twenty (20) in Block "B" of the John R. Davey, et al's Resubdivision of the Earll, Mumford, Ross and Starr's Subdivision of Clearwater, Florida, according to the plat of said Resubdivision as recorded in Plat Book One (1), Page Eighty Seven (87), of the public records of Hillsborough County, Florida, of which Pinellas County was formerly a part. DRAWN BY CHECKED BY DATE DRAWN SECT-TWNSP-RNG SHEETDWG. NO. OF -- CITY OF CLEARWATER ENGINEERING DEPARTMENT Exhibit D Peace Memorial Presbyterian Church Purchase Contract to the CRA & CityJABTLM 07/29/2022 Lgl_2022-17 1 1 16 29S 15E This is not a survey N.T.S. Legal Description Appraisal Report Peace Memorial Tract 107 S Osceola Ave Clearwater, Pinellas County, Florida Prepared For: Ms. Suzanne Kramer City of Clearwater 100 S. Myrtle Ave Clearwater, FL, 33756 Prepared By: Entreken Associates, Inc. 1100 16th Street North Saint Petersburg, Florida 33705 EAI File #: 20220174 May 13, 2022 Ms. Suzanne Kramer City of Clearwater 100 S. Myrtle Ave Clearwater, FL 33756 Re: Appraisal Report 107 S Osceola Ave Clearwater, FL, 33756 Dear Ms. Kramer: As requested, Entreken Associates, Inc. has prepared an Appraisal Report of the above-referenced property for the purpose of estimating the value of the Fee Simple interest of the properties, as is, as of the effective date of value. The subject property is located at the northeast corner of S Osceola Ave and Pierce St. The subject property is a 0.83 acre site or 36,000+/- square foot parcel of land. The site is improved with a two-story, 15,556 square foot, that is scheduled to be demolished. The subject property is identified by the Pinellas County Property Appraiser as Parcel Number(s) 16-29-15-20358-002-0110. The subject property is more fully described in the body of this report. To the best of our knowledge and belief, our analyses, opinions, and conclusions were developed, and this report has been prepared in conformance with the standards and reporting requirements set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), as promulgated by the Appraisal Standards Board of the Appraisal Foundation; the FDIC Market Value Definition; the Appraisal Institute's Code of Ethics and Standards of Professional Practice; Title XI of the Federal Financial Institution Reform, Recovery, and Enforcement Act of 1989 (FIRREA), the Interagency Appraisal and Evaluation Guidelines; as well as our understanding of the appraisal guidelines of the City of Clearwater. The client of this report is the City of Clearwater. The intended user of this report is the City of Clearwater The intended use of this report is To determine the as-is fee simple market value of the subject property for internal use. No other use or users are intended or authorized by Entreken Associates, Inc. The scope of this assignment is restricted to the specific identified intended use and user noted above. Under no circumstances, shall any of the following parties be entitled to use or rely on the appraisal or this appraisal report: (i) the borrower(s) on any loans or financing relating to or secured by the subject property, (ii) any guarantor(s) of such loans or financing, or (iii) principals, shareholders, investors, members or partners of such borrower(s) or guarantor(s). This letter is not an appraisal report, hence, it must not be removed from the attached appraisal report. If this letter is disjoined from the attached appraisal, then the value opinions set forth in this letter are invalid and the analyses, opinions, and conclusions developed herein cannot be properly understood. We certify that we have no present or contemplated future interest in the property beyond this estimate of value. The appraiser has not performed any services regarding the subject within the three-year period immediately preceding acceptance of this assignment. Your attention is directed to the Limiting Conditions and Assumptions section of this report. Acceptance of this report constitutes an agreement with these conditions and assumptions. In particular, we note the following: Hypothetical Conditions There are no hypothetical conditions for this appraisal. Extraordinary Assumptions There are no Extraordinary Assumptions for this appraisal. Based on the appraisal described in the accompanying report, subject to the Assumptions and Limiting Conditions, Extraordinary Assumptions and Hypothetical Conditions (if any), we have made the following value conclusions: We have also concluded to the following market values as part of the analysis: Premise Interest Appraised Effective Date Value Conclusion Estimated Marketing Current As Is Market Value Fee Simple 4/20/2022 $1,620,000 5-6 Months Value Conclusions It has been a pleasure to assist you in this assignment. If you have any questions concerning the analyses, or if Entreken Associates, Inc. can be of additional service, please contact us. Respectfully submitted, Entreken Associates, Inc. Angelo Lallis Senior Real Estate Analyst State-Certified General Real Estate Appraiser RZ4211 alallis@eai-rea.com 727.256.8040 Tampa Bay Office 1100 16th St N, St. Petersburg, FL 33705 http://entrekenassociates.com Florida Keys Office 2409 N Roosevelt Blvd, Ste. 1, Key West, FL 33040 Ph. (305) 767-3410 https://floridakeysappraisals.com Wesley R. Sanders, MAI, AI-GRS, CCIM Senior Managing Director State-Certified General Real Estate Appraiser RZ2911 wsanders@eai-rea.com 727.256.8025 Tampa Bay Office 1100 16th St N, St. Petersburg, FL 33705 http://entrekenassociates.com Florida Keys Office 2409 N Roosevelt Blvd, Ste. 1, Key West, FL 33040 Ph. (305) 767-3410 https://floridakeysappraisals.com Page 1 Table of Contents Summary of Salient Facts and Conclusions ............................................................................................................. 2Scope of Work .............................................................................................................................................................. 3General .......................................................................................................................................................................... 7Site Analysis Summary ............................................................................................................................................... 8Improvements Analysis Summary ............................................................................................................................ 12Highest and Best Use ................................................................................................................................................ 13Sales Comparison Approach – Vacant Site ............................................................................................................. 14Final Reconciliation ................................................................................................................................................... 19Certification Statement .............................................................................................................................................. 20Basic Assumptions and Limiting Conditions .......................................................................................................... 21Addenda ...................................................................................................................................................................... 24Regional Analysis ...................................................................................................................................................... 25Neighborhood Analysis ............................................................................................................................................. 34Office Market Analysis ............................................................................................................................................... 41Legal Description ....................................................................................................................................................... 45Subject Photographs ................................................................................................................................................. 47Land Sale Comparables ............................................................................................................................................ 52Qualifications ............................................................................................................................................................. 59 Page 2 Summary of Salient Facts and Conclusions Report Date 5/13/2022 Inspection Date 4/20/2022 As Is Date of Value 4/20/2022 Report Dates Property Major Type N1DBProperty_Major_TypeLand Address N1DBAddress107 S Osceola Ave City N1DBCityClearwater County N1DBCountyPinellas State N1DBStateFL Zip N1DBZip33756 Tax ID N1DBTax_ID16-29-15-20358-002-0110 Owner N1DBOwnerPeace Memorial Presbyterian Church Land SF N1DBLand_SF36,000 Acres N1DBAcres0.83 Zoning N1DBZoningD Subject Summary Highest and Best Use as Vacant Commercial or Multifamily Development Highest and Best Use Extraordinary Assumptions There are no Extraordinary Assumptions for this appraisal. Hypothetical Conditions There are no hypothetical conditions for this appraisal. Projected Exposure and Marketing Time Exposure time is estimated at 5-6 Months for the subject property. Marketing time is estimated at 5-6 Months for the subject. Value Premise Date of Value 4/20/2022 Value Type Market Value Value Perspective Current Interest Appraised Fee Simple Land Analysis $1,620,000 Summary of Values Page 3 Scope of Work According to the Uniform Standards of Professional Appraisal Practice, it is the appraiser’s responsibility to develop and report a scope of work that results in credible results that are appropriate for the appraisal problem and intended user(s). Therefore, the appraiser must identify and consider: ● the client and intended users; ● the intended use of the report; ● the type and definition of value; ● the effective date of value; ● assignment conditions; ● typical client expectations; and ● typical appraisal work by peers for similar assignments. Intended Use To determine the as-is fee simple market value of the subject property for internal use Intended Users City of Clearwater Intended Use and Users No other use is intended or authorized by Entreken Associates, Inc. The scope of this assignment is restricted to the specific identified intended use and user noted above. Under no circumstances, shall any of the following parties be entitled to use or rely on the appraisal or this appraisal report: (i) the borrower(s) on any loans or financing relating to or secured by the subject property, (ii) any guarantor(s) of such loans or financing, or (iii) principals, shareholders, investors, members or partners of such borrower(s) or guarantor(s). Scope Problem To estimate the as-is fee simple market value of the subject property as if vacant. No demolition costs were deducted based on the scope of work from the client. Appraisal Report Based on the intended users understanding of the subject's physical, economic and legal characteristics, and the intended use of this appraisal, an appraisal report format was used. This is an Appraisal Report as defined by Uniform Standards of Professional Appraisal Practice under Standards Rule 2-2(a). This format provides a summary or description of the appraisal process, subject and market data and valuation analyses. Page 4 Report FormatAlthough the current USPAP does not discern between appraisal report formatting, Entreken Associates, Inc., has adapted the following descriptions and comparisons to previous editions of USPAP. Entreken Associates, Inc. Report format descriptions: Comprehensive Format - Similar to the former Self-Contained Appraisal Report requirements and provides the greatest depth and detail of analysis in an appraisal. Summary Format - Similar to the former Summary Appraisal Report requirements and provides a summary of the analysis, property type overviews, and area analysis. Abbreviated Summary Format - Meets the minimum requirements of the former Summary Appraisal Report and provides a brief summary of data and analysis, as well as summary overviews. Concise Format: Meets the minimum requirements of USPAP for an Appraisal Report and provides a concise summary of data and analysis. This format also resembles a form report for some sections and has minimal overviews. The current USPAP Restricted Appraisal Report is equivalent to the former Restricted-Use Appraisal Report and states the valuation conclusions. This analysis was prepared in a Summary Format. Additional supporting documentation is retained in our workfile. The significant elements of scope included the following: Inspection of the subject property. Collection, verification, and analysis of market data through searches of our in-house sales database, and multiple subscription-based sales databases. It is our opinion that the scope of research and analysis associated with this Appraisal Report is adequate to produce a credible value conclusion that will serve the needs of the client. Market Area and Analysis of Market Conditions A complete analysis of market conditions has been made. We maintain and have access to comprehensive databases for this market area and have reviewed the market for sales and listings relevant to this analysis. The market overview is retained in our files and database. The global outbreak of a “novel coronavirus” known as COVID-19 was officially declared a pandemic by the World Health Organization (WHO). The reader is cautioned, and reminded that the conclusions presented in this appraisal report apply only as of the effective date(s) indicated. The appraiser makes no representation as to the effect on the subject property of any unforeseen event, subsequent to the effective date of the appraisal. Highest and Best Use A highest and best use analysis for the subject has been conducted. Physically possible, legally permissible and financially feasible uses were considered, and the maximally productive use was concluded. Property Identification The subject has been identified by the legal description and the assessors' parcel number. Property Rights Appraised We have appraised the Fee Simple property rights. Subject Inspection An exterior inspection of the subject property has been made, and photographs taken. Role Name Inspected Extent Date of Inspection Appraiser Angelo Lallis has Exterior 4/20/2022 Reviewer Wesley R. Sanders, MAI, AI-GRS, CCIM has not N/A N/A Property Inspection and Report Compilation Assistance Use of Real Estate as of Effective Date of Value As of the as is effective date of the appraisal, the subject was a Church property that is scheduled for demolition. Page 5 Appraisal Process Typically, the cost, sales comparison, and income approaches are used in determining the value of a property. The indicated value developed by these various approaches is weighed by the Appraiser based on the reliability of market data in determining the final value estimate. Income Capitalization Approach The income approach measures the present worth of anticipated future benefits (net income) derived from a property. The approach develops the subject property's estimated net income during the remaining economic life of the improvements. It consists of estimated vacancy, gross income, expenses and other charges. The net income is capitalized to arrive at an indication of value. In the case of multi-tenanted properties, or where a property is not fully leased, a discounted cash flow (DCF) analysis may also be appropriate. Sales Comparison Approach The sales comparison approach produces a value estimate by comparing the subject property to recent sales of similar properties in the same or competing market areas. Inherent in this approach is the principle of substitution. The comparative process involves judgment as to the similarity of the subject and the comparable sale with respect value factors such as the time of sale, land size, building size and quality of construction. The estimated value through this approach represents the probable price at which the subject property would be sold as of the date of value. Cost Approach The cost approach considers the current cost of reproducing a property, less depreciation. The value of the land, as if vacant and available for development, is added to the depreciated cost in arriving at a value conclusion by the cost approach. This approach is based on the assumption that a purchaser is not warranted in paying more for a property than the cost of the land and duplicating the improvements. Applicable Appraisal Methods x Methods Utilized the scope of this assignment is to value the subject as vacant land since the improvements are scheduled to be demolished and since buyers do not typically rely on this method for properties similar to the subject. there is adequate data to develop a value estimate and this approach reflects market behavior for this property type. the subject is not an income producing propertyand this approach does not reflect market behavior for this property type. Income Approach Sales Comparison Approach Cost Approach Conformity We developed our analyses, opinions and conclusions and prepared this report in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) of the Appraisal Foundation; the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute; the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA); and the requirements of our client as we understand them. Page 6 Sources of Information We obtained information from public records, the client, property contact, and a variety of sources as noted throughout the report. Category Sources Market Data Third Party Subscription Sources and Inhouse Research Ownership & Transaction History Pinellas County Public Records Assessment & Tax Data Pinellas County Public Records Site Data Pinellas County Public Records Zoning Data City of Clearwater Public Records Improved Data Pinellas County Public Records Data Sources Page 7 General Property Identification The subject property is a 0.83 acre site or 36,000 square foot parcel of land. The site is improved with a two-story, 15,556 square foot, that is scheduled to be demolished. The subject property is located at 107 S Osceola Ave within Clearwater, Pinellas County, Florida. The subject property is identified by the Pinellas County Property Appraiser as Parcel Number(s) 16-29-15-20358-002-0110. Legal Description: Abbreviated as:Multiple Lots, John R. Davey, Et Al's Resubdivision of the Earll, Mumford, Ross and Starr's Subdivision of Clearwater, according to the map or plat thereof as recorded in Plat Book '0-2', Page 107, Public Records of Pinellas County, Florida The full legal description is in the Addenda of this report. Inspection Date:April 20, 2022 Date of Report:May 13, 2022 Ownership History:The subject property was taken in Fee Simple Deed in May of 1964. We are not aware of any other transactions that have involved the subject property in the past three years. Personal Property/ Non-Realty Items: None, personal property owned by the occupant. Real Estate Taxes:Assessing Authority: Pinellas County Assessment Year: 2021 The subject property is owned by Peace Memorial Presbyterian Church and is tax exempt. The 2021 assessment is summarized in the table below. The total assessment was $904,573. The taxes concluded were calculated at $19,260 using the 2021 millage rates and assessed values. This assessment seems to be in line with the assessments of similar properties in the area. There were no past due taxes owed as of the inspection date. The following table presents the current real estate taxes, including non-ad valorem assessments and any cap adjustments applied to the subject property. Current Real Estate Assessment and Taxes School District All Other Total 16-29-15-20358-002-0110 $904,573 $904,573 Total Assessed Value $904,573 $904,573 Less: Total Cap Adjustment $0 $0 Total Taxable Value $904,573 $904,573 Millage Rate 6.32500 14.96660 21.29160 Assessment Per $1,000 $1,000 Total Ad Valorem Taxes $5,721 $13,538 $19,260 Total Non-Ad Valorem Taxes $0 Total Real Estate Taxes $19,260 Page 8 Site Analysis Summary Location: The subject is located at the northeast corner of S Osceola Ave and Pierce St in Downtown Clearwater. This location is average for an office and retail use. Aerial Map Plat Map Page 9 Parcel ID 16-29-15-20358-002-0110 Location at the northeast corner of S Osceola Ave and Pierce St Map Latitude 27.96432 Map Longitude -82.80089 Site Analysis & Comments The site has average and typical utility. Site Summary Gross Land Area (Sq Ft)36,000 Gross Land Area (Acres)0.83 Usable Land Area (Sq Ft)36,000 Usable Land Area (Acres)0.83 Site Size Attributes Hazardous Material No hazardous materials were observed on the subject site. However, we are not experts in the matters of the presence or effects of hazardous materials; therefore, we assume hazardous material is not present on the site. Primary Frontage Street Name S Osceola Ave Secondary Frontage Street Name Pierce St Frontage - Primary Street (Feet)225 Frontage - Secondary Street (Feet)160 Average Depth (Feet)160 View Average Access Average Site Visibility Average Street Lighting Yes Sidewalks Yes Curb and Gutter Yes Topography Gently sloping Shape The site is rectangular. Soil Conditions Adequate for development Site Characteristics Adequacy of Utilities The subject's utilities are typical and adequate for the market area. Public Electricity The site is served by public electricity Water Supply Type City water Sewer Type City sewer Site Utilities Site Improvements The subject has mature landscaping, paved parking areas, concrete sidewalks and streetlights. FEMA Map #12103C0108J FEMA Map Date 8/24/2021 Flood Zone X Flood Zone Comments The subject improvements do not appear to be in a flood prone area. The Zone X classification is in an area located outside the 100-year designated flood hazard area. Encumbrance / Easement Description There no known adverse encumbrances or easements. Please reference Limiting Conditions and Assumptions. Environmental Issues There are no known adverse environmental conditions on the subject site. Please reference Limiting Conditions and Assumptions. Site Hazards Site CommentsThe site has average and typical utility. Page 10 Flood Map Page 11 Zoning 1 Zoning Authority City of Clearwater Zoning Code D Zoning Type/Description Downtown Gateway Character District Current Use Permitted Yes Current Use Legally Conforming Yes Zoning Intent/Summary Downtown Gateway Character District is intended for moderate intensity residential and mixed-use development in buildings with street facing entries opening onto pedestrian friendly streetscapes. Buildings are designed with facades aligned along streets, modest setbacks, and parking primarily located behind buildings. The area is intended to create transition between higher density mixed-use areas to the west like Prospect Lake Character District and lower to medium intensityresidential areas outside of Downtown to the east and northeast. Future Land Use CBD Future Land Use Description Central Business District Zoning Consistent with FLU Yes Development Standards Max FAR 0.55 Front Set Back Distance 5' Side Yard Distance 5' Back Yard Distance 10' Maximum Building Height 55' Zoning Parking Requirements Places of worship: 1 space per 2 seats Site Conforms to current standards Yes Zoning Data Source Public Records Zoning Comments The subject property has 54 parking spaces. Zoning Summary Zoning Map Page 12 Improvements Analysis Summary Property Description The subject property is a 0.83 acre site or 36,000 square foot parcel of land. The site is improved with a two-story, 15,556 square foot, that is scheduled to be demolished. No demolition costs are included and the scope of the assignment is to value the subject, as vacant. Page 13 Highest and Best Use Highest and best use may be defined as the reasonably probable and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. 1. Legally Permissible: What uses are permitted by zoning and other legal restrictions? 2. Physically Possible: To what use is the site physically adaptable? 3. Financially Feasible: Which possible and permissible use will produce any net return to the owner of the site? 4. Maximally Productive. Among the feasible uses which use will produce the highest net return, (i.e., the highest present worth)? Zoning Code, District D Legally Permissible Comments Given the legally permissible uses under the zoning and future land use, a commercial use, a multifamily use, and a mixed use is given further consideration in determining highest and best use of the site, as vacant. Physically Possible X Land Size .83 acres, 36,000 square feet Shape The site is rectangular. Topography Gently sloping Utilities The subject's utilities are typical and adequate for the market area. The site is served by public electricity, City water, City sewer Access Average Visibility Average Functional Utility Average Physically Possible Comments Based on an analysis of the physical characteristics of the site, there does not appear to be any adverse conditions or lack of utility. Thus, there are no apparent physical or functional problems with the site, which would hinder development. Financially Feasible X Of the legally permissible uses that are physically possible, we have analyzed the market for sales and rental rates versus the cost to construct for the uses that are financially feasible. These include: multifamily and commercial development. Overall, commercial and multifamily development is in demand in the subject's location. Maximally Productive X There does not appear to be any reasonably probable use of the subject site that would generate a higher residual land value than a commercial or a multifamily use. Accordingly, we have concluded that a commercial or multifamily use, developed to the normal market density permitted by current zoning and development standards, are the maximally productive use of the property as both have similar demand. Highest and Best Use as Vacant Commercial or Multifamily Development Comments The Highest and Best Use of the subject site, as vacant, is for commercial or multifamily development (based on current market parameters; when development warrants construction) Highest and Best Use as Vacant The highest and best use of the site, as vacant, is for Commercial or Multifamily Development. Page 14 Sales Comparison Approach – Vacant Site The Cost Approach is based on the premise that an informed purchaser would pay no more for a property than the cost to produce a substitute property with equivalent utility. The Cost Approach herein will utilize a cost-estimating service to estimate the hard costs of the improvements. The cost-estimating service utilized is the Marshall Valuation Service cost manual published by Marshall and Swift Publication Company. When available, the developer’s actual costs are compared to the results of the cost-estimating service and a hard cost is reconciled. Additionally, when available, construction cost comparables are utilized to test the reasonableness of the reconciled hard and soft cost for the subject property. Land Analysis To estimate the land value, we have utilized the Sales Comparison Approach. In this approach the appraiser develops an opinion of value by analyzing similar properties and comparing these properties with the subject property. Application of the sales comparison approach requires the comparing and rating of other comparable properties to the property appraised. The aim of this approach is to develop indications of what the comparable sales would have sold for if they had possessed all of the basic and pertinent physical, functional and external characteristics of the subject property. The steps involved in the Sales Comparison Approach are summarized as follows: 1. Comparable land sales data in the competitive market is obtained and verified, whenever possible; 2. Market-oriented unit(s) of comparison is determined and applied to each of the comparable sales; 3. The elements of comparison that affect the value of the property being appraised are identified and applied to each comparable sale; 4. A net adjustment is applied to each comparable unit sale price to arrive at a range of adjusted sale or unit prices for the subject property; and 5. The adjusted prices are reconciled to an indication of an appropriate value of the subject property. Comparable Sales Data – Land The subject is located in Clearwater. We have identified recent sales of vacant commercial sites. The comparable land sales selected represent the best available for this analysis. The most widely used unit of comparison in this market for the subject property type is the sale price per square foot of land area. As a result, we have analyzed the comparable sales on a price per land square foot basis. The comparable land sales included in this appraisal report are summarized in the table below. The following page includes a location map for the comparable land sales and reflects proximity to the subject property. The Addenda contains comparable land sales data sheets. Given the characteristics of the subject site, as well as the information obtained for the comparable data, the comparables were analyzed through the application of a traditional adjustment grid using percentage adjustments. Comp Address Date Price Land SF Price Per Land SF 1 1258 & 1271 Court St 11/17/2021 $425,000 17,836 $23.83 2 701-714 N Fort Harrison Ave 12/16/2021 $1,600,000 33,423 $47.87 3 639-645 Chestnut St 3/15/2022 $960,000 31,682 $30.30 4 502 Palm Bluff St 4/26/2022 $1,240,000 30,368 $40.83 Page 15 Land Sales Map The Adjustment Process The main points of comparison for this analysis includes the transactional elements such as property rights conveyed, financial terms, the conditions and/or motivations surrounding the sale, and changes in market conditions since the sale date. Property level adjustments account for differences in the locational, physical and economics elements of the sales as compared to the subject property. The comparable sales utilized herein were analyzed relative to the subject property for the following factors: Transactional Components Property Rights Conveyed Adjustments were made when applicable for conveyance of property rights other than those being appraised herein. No transactional components adjustments were warranted for the comparable land sales. Financing Terms Adjustments were made when applicable for extraordinary, special or non-market financing or credits provided by the seller or others which may have influenced the sale price. No adjustment is required. Conditions of Sale Adjustments were made when applicable for non-arm’s length sale transactions and/or atypical conditions. Each of the sales (or pending sales) was an arm’s length transaction. No condition of sale adjustment was required. Expenditures After Sale Adjustments were made when applicable for any reported anticipated expenditures that were incurred after the comparable was purchased. No adjustments are required. Market Conditions The sales used represent reasonably similar land parcels compared to the subject’s underlying land, which sold since November 2021. No adjustments are required. Page 16 Property Level Characteristics Location The subject is located at the at the northeast corner of S Osceola Ave and Pierce St, in Clearwater. Each of the sales was adjusted for location and frontage accordingly, if required, for locational characteristics differing from those of the subject property. The subject is in the Central Downtown Clearwater area adjacent to City Hall. Comparables 1 and 3 are located east of the subject area with upward adjustments required for location. Comparables 2 and 4 are located along Ft Harrison Ave near Clearwater Harbor along with marinas and the Seminole Boat Ramp; therefore, a smaller upward adjustment is warranted. Size The subject site is 36,000 SF in size. Differences in land size were also considered. The adjustment is based on the economies of scale as larger tracts typically sell at a lower per square foot price, all else equal. Likewise, a smaller tract typically sells at a greater per square foot price, all else equal. However, if a site is too small, the site is less desirable and would require an upward adjustment for being limited in development potential. Therefore, Comparable 1 requires an upward adjustment for its limited development potential. Topography The subject site has a generally level topography. Each of the land sales has similar topography; therefore, no adjustments were warranted. Shape The subject site is irregular to slightly rectangular. Each of the comparable land sales is also rectangular or nearly rectangular and conducive to development with the exception of Comparable 1 with an upward adjustment warranted. Utilities The subject and comparables have access to all public utilities with no adjustments warranted. Zoning The subject property is located in the Downtown Core Zoning District with high intensity development permissible. Comparable 1 is in the Downtown Gateway district with moderate intensity development permissible; therefore, an upward adjustment is required. Comparable 4 is in the C- Commercial District with limited uses as compared to the subject zoning district; therefore, an upward adjustment is required. Comparable 3 has similar zoning. Flood Zone The subject and all the comparables are located in a flood zone X with no adjustments required. Improvements Comparables 2 and 4 have improvements for possible interim use prior to development; therefore, a downward adjustment is required. Summary of Adjustments The following table presents a summary of the adjustments for the underlying site. Page 17 Land Analysis Grid Address City State Date Price Land SF Land SF Unit Price Transaction Adjustments Property Rights Fee Simple 0.0%Fee Simple 0.0%Fee Simple 0.0%Fee Simple 0.0% Financing Conventional 0.0%Conventional 0.0%Conventional 0.0%Conventional 0.0% Conditions of Sale Arm's Length 0.0%Arm's Length 0.0%Arm's Length 0.0%Arm's Length 0.0% Expend. After Sale Market Trends Characteristics Adjustments Location Frontage % Adjustment $ Adjustment Land SF % Adjustment Qualitative $ Adjustment Topography % Adjustment Qualitative $ Adjustment Shape % Adjustment Qualitative $ Adjustment Utilities % Adjustment Qualitative $ Adjustment Zoning Character District % Adjustment Qualitative $ Adjustment Flood Zone % Adjustment Qualitative $ Adjustment Improvements % Adjustment Qualitative $ Adjustment Adjusted Land SF Unit Price Net Adjustments Two Sides Downtown Core Downtown Gateway Old Bay Downtown Core N/A $0.00 Similar $0.00 0% $0.00 Mostly RectangularRectangular Gently Sloping $0.00 0% All to Site $4.08 30,368 $0.00 0.00 5%0% $0.00 0% Similar Available to Site $2.39 0% Similar 20% Comp 1 31,682 $30.30 $40.83 30,368 $0 639-645 Chestnut St 502 Palm Bluff St 4/26/2022 Comp 4 0.0% 12/16/202111/17/2021 $1,600,000$425,000 $960,000 33,423 $47.87 $0.00 Comp 3 $2.38 $0.00 Gently Sloping $40.83 Two Sides Three Sides Two Sides Three Sides 0% 0% $23.83 $0.00 $47.87 $47.87 $6.06 Gently Sloping All to Site Rectangular 31,682 $0.00 $2.04 0.00 Superior 0% Zone X -2.04 Similar 36,000 Comp 2 33,423 0% 0.0% 107 S Osceola Ave FL Clearwater FL -- 36,000 17,836 Adjusted Land SF Unit Price $4.77 10% 0.0% Similar Similar Zone X Gently sloping Irregular 10% Inferior Gently Sloping $2.38 $0.00 The site is served by public electricity, City water, City sewer DD 0% $0.00 $0.00 0% Available to Site $0.00 X D Inferior 10% 0% D 0% $2.38 -5% Similar 0.00 -2.39 0% 0.00 None Noted 0% Similar As if Vacant None noted 0% Yes, Occupied Inferior Similar 0.0% 20% $30.30 C 0% Inferior $6.12 15% Zone X $30.30 Yes, Occupied -5% 10% Similar $0.00 Similar $0.00 0% Superior Similar 0.00 0% 0% Similar Similar Inferior Similar 5% 0.0% $36.36$35.74 50.0% $51.04 Similar 0.00 Zone X Clearwater 701-714 N Fort Harrison Ave $0.00 $1,240,000 0% The site is rectangular. Inferior Similar Similar Similar Clearwater $23.83 3/15/2022 $0.00 Clearwater FL 17,836 $40.83 Similar Similar Similar InferiorInferior Clearwater FL Conventional Fee Simple Adjusted Land SF Unit Price $23.83 1258 & 1271 Court St FL $47.87 25.0%20.0% Page 18 Land Sale Value Metrics The following table presents the metrics for the unadjusted and adjusted land sales. The table also presents the concluded market value per land square foot for the subject property. Comparables 1 has the most net adjustments and is given less weight. Weight is given to Comparables 2, 3, and 4. Number of Comparables:4 % Δ 50% 7% 20% 18% 35.57 1,100,000.00 land sf $35.57 One Million Six Hundred Twenty Thousand Dollars Subject Size: $45.00 Reconciled Final As Is Value: $1,620,000 36,000 Reconciled Value/Unit Value: Indicated Value: $1,620,000 High:$47.87 $35.74 Median:$42.12 $42.75 Land Value Ranges & As Is Reconciled Value Low: $51.04 Unadjusted Adjusted $23.83 $35.71Average: Page 19 Final Reconciliation The process of reconciliation involves the analysis of each approach to value. The quality of data applied, the significance of each approach as it relates to market behavior and defensibility of each approach are considered and weighed. Finally, each is considered separately and comparatively with each other. Cost Approach The Cost Approach was not applicable and was not used in this analysis. Sales Comparison Approach The Sales Comparison Approach analyzes similar properties, which have sold in the general area of the subject property. The sales used are recent transactions of reasonably similar properties in the subject’s immediate area and/or nearby competing market areas. The properties are representative of the most recent transactions involving similar properties available for comparison with the subject. This approach provides a reliable value indication for the subject in the current market. Income Approach – Direct Capitalization The Income Capitalization Approach was not applicable and was not used in this analysis. Value Premise Date of Value 4/20/2022 Value Type Market Value Value Perspective Current Interest Appraised Fee Simple Land Analysis $1,620,000 Summary of Values Market Value Conclusion The Sales Comparison Approach was used in valuing the Fee Simple interest as this is the typical method utilized by buyers of property similar to the subject. Based on the data and analyses developed in this analysis, we have reconciled to the following value conclusions, as of April 20, 2022, subject to the Assumptions and Limiting Conditions. Premise Interest Appraised Effective Date Value Conclusion Estimated Marketing Current As Is Market Value Fee Simple 4/20/2022 $1,620,000 5-6 Months Value Conclusions According to the Appraisal Standards Board (ASB) of the Appraisal Foundation, “reasonable marketing time” is an estimate of the amount of time it might take to sell a property interest at the estimated Market Value during the period immediately after the effective date of the report. It is not intended to be a prediction of a specific date of sale and, therefore, may be expressed as a range. Exposure time is defined as the estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at Market Value on the effective date of report. Based upon the sales presented herein, an exposure period of 5-6 Months or less is considered reasonable. Marketing time is also concluded at 5-6 Months. Page 20 Certification Statement We certify that, to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and is our personal, impartial, and unbiased professional analyses, opinions and conclusions. 3. We have no present or prospective future interest in the property that is the subject of this report, and have no personal interest with respect to the parties involved. 4. We have no bias with respect to the property that is the subject of this report, or to the parties involved with this assignment. 5. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP). 8. No one provided significant real property appraisal assistance to the person(s) signing this certification. 9. We certify sufficient competence to appraise this property through education and experience, in addition to the internal resources of the firm. 10. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 11. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 12. The appraiser has not performed any services regarding the subject within the three-year period immediately preceding acceptance of this assignment. 13. Angelo Lallis has made an inspection of the subject property. 14. Wesley R. Sanders, MAI, AI-GRS, CCIM has not made an inspection of the subject property. As of the date of this report, Wesley Sanders, MAI, AI-GRS, CCIM has completed the requirements of the continuing education program for Designated Members of the Appraisal Institute. As of the date of this report, Angelo Lallis and Wesley Sanders, MAI, AI-GRS, CCIM have completed the requirements of the Department of Business and Professional Regulation under the provisions of Chapter 475 FS of the Florida Real Estate Appraisal Board. Angelo Lallis Senior Real Estate Analyst State-Certified General Real Estate Appraiser RZ4211 Wesley R. Sanders, MAI, AI-GRS, CCIM Senior Managing Director State-Certified General Real Estate Appraiser RZ2911 Page 21 Basic Assumptions and Limiting Conditions 1. By this notice, all persons, companies, or corporations using or relying on this report in any manner bind themselves to accept these contingent and limiting conditions, and all other contingent and limiting conditions contained elsewhere in this report. Do not use any portion of this report unless you fully accept all contingent and limiting conditions contained throughout this document. 2. Throughout this report, the singular term "Appraiser" also refers to the plural term "Appraisers”. The terms "Appraiser" and “Appraisers” refer collectively to "Entreken Associates, Inc.", its officers, employees, contractors, and associate appraisers. The masculine terms "he" or "his" also refer to the feminine term "she" or "her”. 3. These conditions are an integral part of this appraisal report, and are a preface to any certification, definition, description, fact, or analysis. Moreover, these conditions are intended to establish as a matter of record that the purpose of this report is to provide one or more value opinions for the subject property. All value opinions are prepared solely for the explicitly identified client and other explicitly identified intended users. 4. Value opinions involve only real estate, and inconsequential personal property. Unless explicitly stated otherwise, value conclusions do not include personal property, un-affixed equipment, trade fixtures, business-good will, chattel, or franchise items of material worth. 5. As part of this appraisal, information was gathered and analyzed to form value opinion(s) that pertain solely to one or more explicitly identified effective value dates. The effective value date is the only point in time that the value applies. Information about the subject property, neighborhood, comparables, or other topics discussed in this report was obtained from sensible sources. In accordance with the extent of research disclosed in the Scope of Work section, all information cited herein was examined for accuracy, is believed to be reliable, and is assumed reasonably accurate. However, no guaranties or warranties are made for this information. No liability or responsibility is assumed for any inaccuracy which is outside the control of the Appraiser, beyond the scope of work, or outside reasonable due diligence of the Appraiser. 6. Real estate values are affected by many changing factors. Therefore, any value opinion expressed herein is considered credible only on the effective value date. Every day that passes thereafter, the degree of credibility wanes as the subject changes physically, the economy changes, or market conditions change. The Appraiser reserves the right to amend these analyses and/or value opinion(s) contained within this appraisal report if erroneous, or more factual-information is subsequently discovered. No guarantee is made for the accuracy of estimates or opinions furnished by others, and replied upon in this report. 7. This appraisal is not an engineering, construction, legal, or architectural study. It is not an examination or survey of any kind. Expertise in these areas is not implied. The Appraiser is in no way responsible for any costs incurred to discover, or correct any deficiency in the property. In the case of limited partnerships, syndication offerings, or stock offerings in the real estate, the client agrees that in case of lawsuit (brought by the lender, partner, or part owner in any form of ownership, tenant, or any other party), the client will hold Entreken Associates, Inc., its officers, contractors, employees and associate appraisers completely harmless. Acceptance of, and/or use of this report by the client, or any third party is prima facie evidence that the user understands, and agrees to all these conditions. 8. Unless specifically stated otherwise herein, the Appraiser is unaware of any engineering study made to determine the bearing capacity of the subject land, or nearby lands. Improvements in the vicinity, if any, appear to be structurally sound. It is assumed soil and subsoil conditions are stable and free from features that cause supernormal costs to arise. It is also assumed existing soil conditions of the subject land have proper load bearing qualities to support the existing improvements, or proposed improvements appropriate for the site. No investigations for potential seismic hazards were made. This appraisal assumes there are no conditions of the site, subsoil, or structures, whether latent, patent, or concealed that would render the subject property less valuable. Unless specifically stated otherwise in this document, no earthquake compliance report, engineering report, flood zone analysis, hazardous substance determination, or analysis of these unfavorable attributes was made, or ordered in conjunction with this appraisal report. The client is strongly urged to retain experts in these fields, if so desired. 9. For appraisals of multifamily property, only a portion of all dwellings was observed. A typical ratio of observed dwellings roughly approximates 10% of the total number of units, and this ratio declines as the number of dwellings grows. It is assumed the functionality, physical condition, and interior finish of unseen units are similar to the functionality, physical condition, and interior finish of observed units. If unobserved dwellings significantly differ from those that were viewed in functionality, physical condition, or finish, the Appraiser reserves the right to amend theses analysis and/or value opinion(s). 10. If this appraisal values the subject as though construction, repairs, alterations, remodeling, renovation, or rehabilitation will be completed in the future, it is assumed such work will be completed in a timely fashion, using non-defective materials, and proper workmanship. All previously completed work is assumed to substantially conform to plans, specifications, descriptions, or attachments made or referred to herein. It is also assumed all planned, in-progress, or recently completed construction complies with the zoning Page 22 ordinance, and all applicable building codes. A prospective value opinion has an effective value date that is beyond or in the future relative to the report preparation date. If this appraisal includes a prospective valuation, it is understood and agreed the Appraiser is not responsible for an unfavorable value effect caused by unforeseeable events that occur before completion of the project. 11. This valuation may or may not include an observation of the appraised property by a signatory to this report. The extent of any observation is disclosed in the Scope of Work section of this report. Any observation by a signatory is not, and should not be misconstrued as a professional property inspection. Comments or descriptions about physical condition of the improvements, if any, are based solely on a superficial visual observation. Electric, heating, cooling, plumbing, water supply, sewer or septic, mechanical equipment, and other systems were not tested. No determination was made regarding the operability, capacity, or remaining physical life of any component in, on, or under the real estate appraised. All building components are assumed adequate and in good working order unless stated otherwise. Private water wells and private septic systems are assumed sufficient to comply with federal, state, or local health safety standards. No liability is assumed for the soundness of structural members since structural elements were not tested or studied to determine their structural integrity. The roof cover for all structures is assumed water tight unless otherwise noted. Comments regarding physical condition are included to familiarize the reader with the property. This document is not an engineering or architectural report. If the client has any concern regarding structural, mechanical or protective components of the improvements, or the adequacy or quality of sewer, water or other utilities, the client should hire experts in an appropriate discipline before relying upon this report. No representations are made herein as to these matters unless explicitly stated otherwise in this report. 12. If this appraisal values an interest that is less than the whole fee simple estate, then the following disclosure applies. The value for any fractional interest appraised plus the value of all other complementary fractional interests may or may not equal the value of the entire fee simple estate. 13. An appraised property that is a physical portion of a larger parcel or tract is subject to the following limitations. The value opinion for the property appraised pertains only to that portion defined as the subject. This value opinion should not be construed as applying with equal validity to other complementary portions of the same parcel or tract. The value opinion for the physical portion appraised plus the value of all other complementary physical portions may or may not equal the value of the whole parcel or tract. 14. No liability is assumed for matters of legal nature that affect the value of the subject property. Unless a clear statement to the contrary is made in this report, value opinion(s) formed herein are predicated upon the following assumptions. (A) The real property is appraised as though, and assumed free from all value impairments including yet not limited to title defects, liens, encumbrances, title claims, boundary discrepancies, encroachments, adverse easements, environmental hazards, pest infestation, leases, and atypical physical deficiencies. (B) All real estate taxes and assessments, of any type, are assumed fully paid. (C) The property being appraised is assumed to be owned under responsible and lawful ownership. (D) It is assumed the subject property is operated under competent and informed management. (E) The subject property was appraised as though, and assumed free of indebtedness. (F) The subject real estate is assumed fully compliant with all applicable federal, state, and local environmental regulations and laws. (G) The subject is assumed fully compliant with all applicable zoning ordinances, building codes, use regulations, and restrictions of all types. (H) All licenses, consents, permits, or other documentation required by any relevant legislative or governmental authority, private entity, or organization have been obtained, or can be easily be obtained or renewed for a nominal fee. 15. The allocation of value between the subject's land and improvements, if any, represents our judgment only under the existing use of the property. A re-evaluation should be made if the improvements are removed, substantially altered, or the land is utilized for another purpose. 16. The Appraiser assumes a prospective purchaser of the subject is aware of the following. (A) This appraisal of the subject property does not serve as a warranty on the physical condition of the property. (B) It is the responsibility of the purchaser to carefully examine the property, and to take all necessary precautions before signing a purchase contract. (C) Any estimate for repairs is a non-warranted opinion of the Appraiser. 17. Any exhibits in the report are intended to assist the reader in visualizing the subject property and its surroundings. The drawings are not surveys unless specifically identified as such. No responsibility is assumed for cartographic accuracy. Drawings are not intended to be exact in size, scale, or detail. 18. Conversion of the subject's income into a market value opinion is based upon typical financing terms that were readily available from a disinterested, third party lender on this report’s effective date. Atypical financing terms and conditions do not influence market value, but may affect investment value. 19. All information and comments concerning the location, market area, trends, construction quality, construction costs, value loss, physical condition, rents, or any other data for the subject represent estimates and opinions of the Appraiser. Expenses shown in the Income Approach, if used, are only estimates. They are based on past operating history, if available, and are stabilized as generally typical over a reasonable ownership period. 20. The Appraiser is not required to give testimony or appear in court because of having prepared this report unless arrangements are agreed to in advance. If the Appraiser is subpoenaed pursuant to court order, the client agrees to compensate the Appraiser for their court appearance time, court preparation time, and travel Page 23 time at their regular hourly rate then in effect plus expenses. In the event the real property appraised is, or becomes the subject of litigation, a condemnation, or other legal proceeding, it is assumed the Appraiser will be given reasonable advanced notice, and reasonable additional time for court preparation. 21. Entreken Associates, Inc. and the Appraiser have no expertise in the field of insect, termite, or pest infestation. We are not qualified to detect the presence of these or any other unfavorable infestation. The Appraiser has no knowledge of the existence of any infestation on, under, above, or within the subject real estate. No overt evidence of infestation is apparent to the untrained eye. However, we have not specifically inspected or tested the subject property to determine the presence of any infestation. No effort was made to dismantle or probe the structure. No effort was exerted to observe enclosed, encased, or otherwise concealed evidence of infestation. The presence of any infestation would likely diminish the property's value. All value opinions in this communication assume there is no infestation of any type affecting the subject real estate. No responsibility is assumed by Entreken Associates, Inc. or the Appraiser for any infestation or for any expertise required to discover any infestation. Our client is urged to retain an expert in this field, if desired. 22. Effective January 26, 1992, the Americans with Disabilities Act (ADA) - a national law, affects all nonresidential real estate or the portion of any property, which is non-residential. The Appraiser has not observed the subject property to determine whether the subject conforms to the requirements of the ADA. It is possible a compliance survey, together with a detailed analysis of ADA requirements, could reveal the subject is not fully compliant. If such a determination was made, the subject's value may or may not be adversely affected. Since the Appraiser has no direct evidence, or knowledge pertaining to the subject's compliance or lack of compliance, this appraisal does not consider possible noncompliance or its effect on the subject's value. All opinions are those of the signatory Appraiser based on the information in this report. No responsibility is assumed by the Appraiser for changes in market conditions, or for the inability of the client, or any other party to achieve their desired results based upon the appraised value. Some of the assumptions or projections made herein can vary depending upon evolving events. We realize some assumptions may never occur and unexpected events or circumstances may occur. Therefore, actual results achieved during the projection period may vary from those set forth in this report. Compensation for appraisal services is dependent solely on the delivery of this report, and no other event or occurrence. 23. No part of this report shall be published or disseminated to the public by the use of advertising media, public relations media, news media, sales media, electronic devices, or other media without the prior written consent of Entreken Associates, Inc. This restriction applies particularly as to analyses, opinions, and conclusions; the identity of the Appraiser; and any reference to the Appraisal Institute or its MAI, SRPA, or SRA designations. Furthermore, no part of this report may be reproduced or incorporated into any information retrieval system without written permission from Entreken Associates, Inc., the copyright holder. Page 24 Addenda Page 25 Regional Analysis REGIONAL MAP Introduction The subject property is located in Bradenton, Pinellas County, Florida, which is within the Tampa-St. Petersburg-Clearwater Metropolitan Statistical Area (MSA). The Tampa MSA is generally referred to as the Tampa Bay area, which consists of Hernando, Hillsborough, Pasco, and Pinellas Counties, as defined by the US Census Bureau. It includes the major municipalities of Tampa, St. Petersburg, Clearwater, and Brandon. Some publications also include the Citrus, Manatee, Pasco, Polk, and Sarasota counties. However, for this analysis, we have included the four county area. The Tampa Bay area is approximately 80 miles west of Orlando, 270 miles northwest of Miami, and 200 miles southwest of Jacksonville. Because the subject benefits from the strength of the area, an overview of this area is appropriate, followed by a description of the community in which the subject is located. The Tampa Bay MSA is located in Southwest Florida on the Gulf of Mexico and Tampa Bay and encompasses 2,554.5 square miles. Page 26 MSA at a Glance - TAMPA-ST. PETERSBURG-CLEARWATER FL Page 27 Page 28 Employment Tampa Bay’s unemployment rate has decreased from a high of 13.2% in April 2020, and is at 3.3% as of January 2022, according to the Bureau of Labor and Statistics figures. The losses slowed in mid-2020 as Florida re-opened businesses, but much of the leisure, hospitality and tourism industries had ground to a halt. Among the other hardest hit industries were health care, social assistance, retail trade, professional and business services and construction. Health care job loss may have seemed unexpected, but the sector lost at least 43,000 jobs nationally, according to the report. Since mid-2020, these industries have recovered, and Florida unemployment now well outpaces the national average. Unemployment The following table exhibits current and past unemployment rates as obtained from the Bureau of Labor Statistics. Overall, the metro had a lower unemployment rate than the state and the nation. This, combined with the pro-business philosophy of Florida, has increased investor demand for real estate in Florida over the past couple years. Area YE 2016 YE 2017 YE 2018 YE 2019 YE 2020 YE 2021 Jan-22 Tampa-St. Pete-Clwr, FL MSA 4.3%3.7%3.4%2.7%5.7%2.7%3.3% Florida 4.5%3.8%3.4%2.6%6.3%2.9%3.5% United States 4.7%4.1%3.9%3.6%6.7%3.9%4.0% Unemployment Rates 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Unemployment Rates Tampa-St. Pete-Clwr, FL MSA Florida United States Page 29 The following table provides the employment by industry for the Tampa Bay MSA. Mining/Logging 300 0.0% Construction 87,800 6.1% Manufacturing 69,900 4.8% Trade, Transportation, Utilities 272,700 18.9% Information 28,000 1.9% Financial Activities 135,300 9.4% Professional and Business Services 271,300 18.8% Education and Health Services 220,600 15.3% Leisure and Hospitality 158,500 11.0% Other Services 45,500 3.2% Government 154,500 10.7% Employment by Industry - Tampa Bay MSA Industry Feb-22 Percent of Employment Major Employers The following table indicates the major employers within the Tampa Bay MSA. Company No. of Employees BayCare Health Care Systems 28,357 Publix Super Markets 26,000 Hillsborough County School District 24,000 HCA West Florida Division 18,000 University of South Florida 16,277 MacDill Air Force Base 15,000 Pinellas County School District 15,000 Polk County School District 13,235 Pasco County School District 12,733 AdventHealth West Florida 12,000 Major Employers - Tampa Bay MSA COVID-19 Employment impact:The coronavirus pandemic and the unprecedented economic shutdown had a profound impact in the Tampa Bay metro, as it did nationwide, in the short-term. Florida’s Safer-at-Home order went into effect on April 3rd, 2020. The order allowed for loosely defined essential workers to continue working. Most states experienced a similar shut-down, which triggered a round of stimulus checks and enhanced unemployment benefits. Florida Governor Ron DeSantis partially reopened the State on May 4th, 2020, and continued to open more sectors over the next few months. Unemployment in Tampa Bay was at 10.5% in the second quarter 2020, compared to 11.7% in Florida and 11.1% in the US, overall. Considering the modest tourism industry in Tampa Bay compared to Florida in general, employment rapidly increased after the re-opening. Overall, due to the diverse workforce and strong economy before the COVID-19 outbreak with a 2.9% unemployment in Tampa Bay in February 2020, unemployment receded to 3.5% as of November 2021. The employment base also improved with additional people entering the workforce. These additional employees and jobs will continue to spur economic growth in Tampa Bay. Tourism Tampa Bay’s start to 2020 was welcomed with a boom in the hotel industry. The new Marriott Autograph Collection boutique has opened on the West Shore District waterfront. Hotel Alba is Tampa Bay’s first Hilton Tapestry Collection property in the metro, while Seminole Hard Rock Hotel & Casino features a new luxurious 500-room tower. The new Hampton Inn/Home2 Suites near Port Tampa Bay has also opened and Chicago’s Aparium Group opened a new Page 30 boutique in the heart of Ybor City in March. In addition, a new JW Marriott Hotel & Resort is seen steps away from Tampa Riverwalk & Amalie Arena. The 5-star Tampa EDITION will open in 2022 as part of the Water Street project. A new Hyatt Place/Hyatt House in downtown is open as well as the Aloft and Element that makes up the said $500 million Midtown Project. A Home 2 Suites has opened, and a Cambria hotel will be built near Tampa International Airport. Busch Gardens Tampa Bay launches Iron Gwazi, the tallest and steepest hybrid rollercoaster in North America, while Adventure Island Water Park offers its new ride called The Solar Vortex. ZooTampa at Lowry Pak has also expanded its site to treat some of the injured Florida manatees. Pinellas County is known for the beaches of the barrier islands including from Clearwater Beach in the north to St. Pete Beach in the south. The St. Petersburg/Clearwater area is the leading destination on the Gulf Coast with more than 6.5 million overnight visitors in 2017. The economic impact of tourism in Pinellas County exceeded $10.3 billion in 2017. The Gulf Coast draws visitors for the outdoor and on-the-water recreational opportunities such as golf with a myriad of public, municipal and private courses. The area is known as one of the best fishing grounds with both inshore and offshore opportunities and charter companies operating out of the many marinas in the area. Clearwater Beach is known as one of the best beaches in the world (Trip Advisor’s #1 in 2018) with many attractions including the Clearwater Marine Aquarium featuring Winter, perhaps the most famous dolphin in the world. There are many museums and other cultural attractions that draw tourists including the Dali Museum, the Chihuly Collection, St. Petersburg Museum of History and Imagine Museum to name a few. The St. Petersburg Arts Alliance partnered with St. Petersburg to ensure a strong arts-related economic presence and foster growth in the seven arts districts. Largo offers several attractions including the Florida Botanical Gardens, and the Pinellas County Heritage Village, an open-air historical village and museum dating to the mid-19th Century. The Pinellas Trail is a linear trail extending from St. Petersburg to Tarpon Springs through Largo. The 45-mile trail is developed mostly along abandoned rail lines and is open for cyclists, joggers, and skaters. Linkages Interstate 275 traverses north and south through the center of the county. This limited-access highway provides access to Interstate 75 to the north and Saint Petersburg to the south. Interstate 75 is a limited-access highway which traverses north and south through the center of the county. This highway provides access to Manatee County to the south and Hernando and Pasco counties to the north. Interstate 4 is a limited access highway that terminates in Hillsborough County and travels east to Orlando. There are several limited-access toll roads that traverse through the county and numerous county roads. There are three major bridges that provide access to Pinellas County from Hillsborough County. These include the West Courtney Campbell Causeway (State Route 60), the Howard Frankland Bridge (Interstate 275/State Route 93) and U.S. Highway 92/State Route 600. Overall, the linkages throughout the county are ample with good access to other areas of the Tampa Bay area. Page 31 Transportation The Tampa Bay MSA is home to two major airports including St. Pete-Clearwater International Airport (PIE) in Pinellas County, and Tampa International Airport in Hillsborough County. Tampa International Airport is an international airport approximately 6.0 miles west of Downtown Tampa. It is served by over twenty major airlines, including Southwest Airlines which operates up to 121 flights per day. In 2019, the airport reportedly handled 22,497,953 passengers, making it the 28th busiest airport in North America. Mass transit is provided by the public transports available for each county as stated below: Pinellas County Pinellas Suncoast Transit Authority (PSTA) Hillsborough County Hillsborough Area Regional Transit Authority (HART) Pasco County Pasco County Public Transportation (PCPT) Hernando County Hernando County Transit Services (TheBus) Population The 2021 population data is the most current available for the Tampa MSA with growth as illustrated below. As employment has increased over the past few years, the population growth has also increased. The four county Tampa MSA had an estimate 2021 population of 3,228,154 in which is expected to increase by 1.27% per year until 2026. 2021 Population 2026 Population Estimation 2021-2026 Population: Annual Growth Tampa-St. Petersburg-Clearwater 3,228,154 3,438,732 1.27% Florida 21,733,419 23,197,833 1.31% USA 333,934,112 345,887,495 0.71% Median Household Income Total median household income for the region is presented in the following table. Overall, the subject’s county is similar to the MSA and state. However, is slightly below the nation. 2021 Median Household Income 2021 Average Household Income 2021 Per Capita Income Tampa-St. Petersburg-Clearwater 58,049 82,576 33,696 Florida 58,462 83,820 32,917 USA 64,730 92,435 35,106 Page 32 Residential Real Estate House Price Appreciation: Median price for houses is $390,000 in March 2022 compared to $300,000 in March 2021, which was a 30.0% increase. Similarly, condo/townhome median pricing is up 25.6% during the same timeframe, up to $270,000 from $215,000. Active listings are down 3.6% from last year in the Single-Family home market and down 27.4% in the Townhouse/Condo market. This is due to the increased sales volume and increase in demand for housing. The table below summarizes the most important housing market indicators for the Tampa, FL metro in March 2022. Source: Greater Tampa Realtors The Tampa, FL metro had a strong seller’s market in March 2022. For the Single-Family segment, months’ supply stood at 0.6 months. For the Townhouse/Condo segment, it stood at 0.6 months. On a market segment basis, entry-level markets tend to have a somewhat lower demarcation point between a buyer’s and seller’s market (estimated around 5 months) and move-up markets tend to have a somewhat higher demarcation point between a buyer’s and seller’s market (estimated around 7months). This is because even in a balanced market, the less expensive entry-level homes usually sell more quickly than move-up homes. Lower levels of months’ inventory tend to lead to upward price pressures. This is especially common in the entry-level market, where supply has been most constrained since 2012 and which has led to reduced affordability. Mortgage Risk: AEI measures the level of mortgage risk present in a metro through the mortgage default rate. A higher mortgage default rate implies greater access to credit, but also indicates greater likelihood of default. While at first glance, greater access may seem like a positive, especially for first-time buyers trying to enter the market, when market conditions are tight, it actually works to their detriment. During a seller’s market, greater access to credit is capitalized into higher house prices, which then generally results in home prices rising faster than, for example, incomes or rents. In the Tampa, FL metro, the most recent mortgage default rate data is for the 3rd quarter of 2021, which stood at 13.2%, compared to 12.0% for the nation. The mortgage default rate in the Tampa, FL metro increased from a year ago, when the mortgage default rate stood at 12.5%. The mortgage default rate varied substantially by market segment for the Tampa, FL metro. The mortgage default rate for entry-level buyers was 16.6%, but only 9.9% for move-up buyers. Expected mortgage rate increases is not likely to be positive for the residential housing market. We expect pricing to stabilize and likely only moderately increase in 2022. This depends heavily on the net positive in-migration of people moving to the area from other parts of the country. Page 33 New Construction Activity: In the third quarter of 2021, new construction added 13.9% to the Tampa, FL metro housing stock. This is higher than the nation, for which the new construction contribution during the same time period was 9.9%. Additions to the existing housing stock during this period varied substantially by market segment. While 3.6% was added to the low price tier stock, 10.2% was added to the low-medium price tier stock, and 13.9% was added to the medium-high & high price tier stock. MSA Conclusion Housing demand and prices continue to grow, while 2021 housing permits topped the previous year by 20%, housing prices are also at the highest levels since 2008. As the economy continued to improve throughout late 2021, not only did housing prices continue to rise, but residential rental rates also increased. These trends have continued into 2022 throughout the residential and commercial real estate sectors. It is unclear what effect rising interest rates will have on the economy and real estate markets. Healthcare is another key driver for the metro area—jobs in the medical profession are over 15% of the area’s workforce and pay slightly more than the local average. Hiring in these elective fields is evidence that residents are optimistic about the region’s recovery. This increase is also attributable to the extra demand created by the large, fast-growing senior population. Among major metro areas, the Tampa MSA maintains the largest percentage of residents older than 65, even with a population growth trend of under 20-year olds outpacing the country as a whole. Tampa-St. Petersburg-Clearwater is expected to outpace the nation over the next two years, as an influx of residents, mostly retirees and people moving from the northeast, will drive demand for housing and other locally produced services. These transplants will contribute to its tax base, but not add as much to its tightening labor supply as a high percentage appear to be retirees and remote employees. This will also help to continue to drive the construction market. Overall, these factors have led to the lowest unemployment levels in Tampa Bay since before the COVID pandemic, a growing labor force with more people entering the job market, while driving up wages. While the hospitality industry in the beaches area has been robust over the past few years, continually breaking records, the industry is also expected to continue to slowly recover outside the beaches areas, as the US and world economies improve. The beaches continue to be some of the upmost traveled to destinations with outdoor venues especially in high demand in 2020 and 2021. These factors will ensure that Tampa Bay’s income expands faster than the nation’s over the forecast horizon. Robust healthcare and the outdoor lifestyle demand will be a catalyst for the foreseeable future and the outlook for the long-term economy is positive. Page 34 Neighborhood Analysis Due to the summary format of the report, detailed information relative to regional and city trends have been summarized as follows. Overview Pinellas County was founded in 1912. The county seat, Clearwater, was incorporated in 1891. It totals 608 square miles, made up of 274 square miles of land and 334 square miles of water. The subject’s neighborhood is located in the City of Clearwater, within Pinellas County. The borders include Sunset Point Rd to the north, S Keene Rd to the east, Belleair Rd to the south, and the Intracoastal Waterway to the west. Access/Visibility Within the immediate area of the subject property, transportation access helps define the character of its development. This portion of Pinellas County has average to good access with the primary north and south roadway being Alt US-19, and the primary east and west roadway being Gulf to Bay Blvd, which gives the subject neighborhood quick access to Hillsborough County. There are a number of secondary and tertiary streets traversing the neighborhood to provide good access. Land Use Patterns Development within the neighborhood includes low-density commercial/retail development along major thoroughfares such as Court St and S Missouri Ave., with residential developments located on secondary thoroughfares scattered throughout the neighborhood. Residential makes up most of the development in the neighborhood on the south side of Court St, and the north side of Court St to Drew St has mixed development as it’s part of Downtown Clearwater. There is very little industrial development. The developable area in the PMA is approximately 95% developed, with most vacant land being parcels that were previously developed and were demolished for re-development. The approximate breakdown of land uses is as follows: Single-family 45%, Multifamily 15%, Retail 25%, Office 10%, Industrial 3%, and Vacant Land 2%. The neighborhood is in the stability phase of its life cycle. Page 35 New retail and mixed-use developments are also underway within 5 miles of the subject. The Clearwater Downtown Redevelopment Plan Area serves as a long-term vision for Downtown Clearwater and surrounding residential and commercial areas. It includes a 540-acre community redevelopment area namely Imagine Clearwater; a $55 million master plan along downtown’s waterfront that will offer high-rise office, mixed-use residential and retail space, and the North Marina Master Plan area on the other hand covers 64 acres just north of Downtown Clearwater which focuses on attracting commercial, retail, restaurants and more residential to the neighborhood. Public Facilities/ Services Public utilities (sewer, water, trash) are available to most portions of the neighborhood and provided by Pinellas County Utilities and the City of Clearwater, while TECO Energy provides electricity. Fire and police protection are adequate to meet the needs of the neighborhood’s residents and are provided by the City of Clearwater. Public transportation is available in the neighborhood and adequate medical services are also provided. Neighborhood Demographics The following tables present the subject neighborhood demographics for a one-, three- and five-mile radius from the subject property. Page 36 2021 Median Age 45.3 46.3 50.7 2021-2026 Annual Rate 0.92%0.60%0.62% 2010-2021 Annual Rate 1.29%0.48%0.62% 2000-2010 Annual Rate -0.16%0.21%0.05% 2026 Population 7,837 85,520 217,519 2021 Population 7,487 83,004 210,848 2010 Population 6,483 78,640 196,623 2000 Population 6,586 76,971 195,595 1 mile 3 miles 5 miles In the identified area, the current year population is 210,848. In 2010, the Census count in the area was 196,623. The rate of change since 2010 was 0.62% annually. The five-year projection for the population in the area is 217,519 representing a change of 0.62% annually from 2021 to 2026. Demographic Data Population characteristics and income levels were obtained from STBOnline for 1, 3, and 5-mile radii near the subject’s location. A summary of the information is presented in the following tables. POPULATION Page 37 2021 Average Household Size 2.02 2.27 2.13 2021-2026 Annual Rate 0.96%0.54%0.58% 2010-2021 Annual Rate 1.32%0.35%0.54% 2000-2010 Annual Rate -0.11%-0.11%-0.01% 2026 Total Households 3,699 36,194 99,690 2021 Total Households 3,526 35,237 96,854 2010 Households 3,042 33,877 91,131 2000 Households 3,077 34,266 91,258 2021 Wealth Index 58 86 79 1 mile 3 miles 5 miles The household count in this area has changed from 91,131 in 2010 to 96,854 in the current year, a change of 0.54% annually. The five-year projection of households is 99,690, a change of 0.58% annually from the current year total. Average household size is currently 2.13, compared to 2.11 in the year 2010. The number of families in the current year is 51,561 in the specified area. HOUSEHOLD Page 38 2021-2026 Annual Rate 2.60%2.49%2.54% 2026 Per Capita Income $32,047 $37,293 $38,168 Per Capita Income 2021 Per Capita Income $28,184 $32,983 $33,662 2021-2026 Annual Rate 2.65%2.59%2.61% 2026 Average Household Income $66,778 $86,907 $82,782 Average Household Income 2021 Average Household Income $58,597 $76,470 $72,773 2021-2026 Annual Rate 2.48%2.27%2.35% 2026 Median Household Income $36,791 $56,184 $57,341 Median Household Income 2021 Median Household Income $32,552 $50,222 $51,044 Mortgage Income 2021 Percent of Income for Mortgage 34.4%22.0%19.5% 1 mile 3 miles 5 miles Current median household income is $51,044 in the area, compared to $64,730 for all U.S. households. Median household income is projected to be $57,341 in five years, compared to $72,932 for all U.S. households. Current average household income is $72,773 in this area, compared to $90,054 for all U.S. households. Average household income is projected to be $82,782 in five years, compared to $103,679 for all U.S. households. Current per capita income is $33,662 in the area, compared to the U.S. per capita income of $34,136. The per capita income is projected to be $38,168 in five years, compared to $39,378 for all U.S. households. INCOME Page 39 2026 Vacant Housing Units 1,333 9,731 21,858 2026 Renter Occupied Housing Units 2,632 14,452 36,808 2026 Owner Occupied Housing Units 1,067 21,741 62,882 2026 Total Housing Units 5,032 45,925 121,548 2021 Vacant Housing Units 1,289 9,763 21,878 2021 Renter Occupied Housing Units 2,529 14,267 36,536 2021 Owner Occupied Housing Units 997 20,970 60,317 2021 Total Housing Units 4,815 45,000 118,732 2010 Vacant Housing Units 1,058 9,444 21,590 2010 Renter Occupied Housing Units 2,125 13,787 33,795 2010 Owner Occupied Housing Units 917 20,090 57,336 2010 Total Housing Units 4,100 43,321 112,721 2000 Vacant Housing Units 699 6,233 15,825 2000 Renter Occupied Housing Units 1,985 12,373 29,403 2000 Owner Occupied Housing Units 1,092 21,893 61,855 2000 Total Housing Units 3,776 40,499 107,083 2021 Housing Affordability Index 66 106 119 1 mile 3 miles 5 miles Currently, 50.8% of the 118,732 housing units in the area are owner occupied; 30.8%, renter occupied; and 18.4% are vacant. Currently, in the U.S., 57.3% of the housing units in the area are owner occupied; 31.2% are renter occupied; and 11.5% are vacant. In 2010, there were 112,721 housing units in the area - 50.9% owner occupied, 30.0% renter occupied, and 19.2% vacant. The annual rate of change in housing units since 2010 is 2.34%. Median home value in the area is $237,203, compared to a median home value of $264,021 for the U.S. In five years, median value is projected to change by 3.08% annually to $276,012. HOUSING Page 40 Market Area Conclusion The subject is located in Downtown Clearwater, FL. The area is nearly completely developed. The neighborhood is well located and is within commuting distance of other areas of Pinellas County and surrounding communities along the barrier islands. The accessibility of the locale is enhanced by its proximity to Court St and S Missouri Ave. Given its location characteristics and being mostly built-out, a slow population growth is expected within 3 miles of the subject over the next several years. Demand for properties is expected to be stable to increasing with the new Imagine Clearwater waterfront development. The long-term outlook for the neighborhood is anticipated to be one of continued slow growth, re-development, and demand into the foreseeable future. Page 41 Office Market Analysis The subject property is classified as a property within the general Tampa Bay MSA market area based property classifications from the CoStar Group, Inc., a leading provider of real estate information services. The following analysis will present a macro level analysis of this property type within the generally defined market area of Tampa Bay MSA and a micro level analysis of this property type which is defined as the Downtown Clearwater submarket. Tampa Bay MSA Market Area The following table presents the historical market performance for the market area. Tampa Bay MSA Market Office Market Statistics Vacancy Direct Quarter Rate Rental Rate 2022 Q1 10,682 127,260,208 654,333 6 65,156 (303,116)8.1%$25.23 2021 Q4 10,677 127,198,190 600,739 3 14,500 (86,575)7.9%$24.70 2021 Q3 10,676 127,463,306 585,056 8 540,028 232,256 7.9%$24.15 2021 Q2 10,668 126,923,278 990,584 15 443,196 358,018 8.3%$23.81 2021 Q1 10,656 126,560,603 1,381,124 15 651,285 (181,305)8.1%$23.66 2020 Q4 10,643 125,916,719 1,875,409 13 356,609 (211,688)7.5%$23.00 2020 Q3 10,634 125,692,688 2,075,020 11 157,421 (185,175)7.0%$23.01 2020 Q2 10,623 125,534,883 1,997,474 13 282,486 201,136 6.6%$22.61 2020 Q1 10,613 125,273,734 2,183,902 12 264,271 114,621 6.4%$22.72 2019 Q4 10,606 125,038,218 2,310,953 6 373,406 190,795 6.7%$22.56 2019 Q3 10,607 124,733,352 2,313,627 13 103,475 124,933 6.8%$22.02 2019 Q2 10,609 124,739,970 1,922,432 8 54,991 (84,502)6.9%$21.03 2019 Q1 10,603 124,722,202 1,275,299 10 246,550 98,223 6.8%$20.94 2018 Q4 10,595 124,549,623 1,000,156 7 38,800 62,070 6.8%$20.34 2018 Q3 10,594 124,667,450 656,395 12 508,740 414,762 7.0%$20.32 2018 Q2 10,584 124,170,871 1,020,032 2 7,370 285,334 6.9%$19.99 2018 Q1 10,586 124,250,852 706,575 10 227,829 171,252 7.2%$19.64 2017 Q4 10,591 124,326,682 881,959 7 102,738 17,363 7.1%$19.54 2017 Q3 10,589 124,339,582 470,377 10 35,184 113,037 7.2%$19.36 2017 Q2 10,581 124,333,298 499,561 16 238,467 383,167 7.4%$19.24 Minimum 10,581 124,170,871 470,377 2 7,370 (303,116)6.4%$19.24 Maximum 10,682 127,463,306 2,313,627 16 651,285 414,762 8.3%$25.23 Median 10,608 124,889,094 1,010,094 10 233,148 113,829 7.1%$22.29 Mean 10,621 125,384,785 1,270,050 10 235,625 85,730 7.2%$21.89 Net Absorption SF Total Number of Buildings Total Inventory Under Construction Buildings Delivered Square Feet Delivered Inventory The Tampa Bay MSA market contains an overall inventory of 127,260,208 square feet of rentable area within 10,682 buildings. This equates to an average building size of 11,914 square feet. ConstructionThere is currently 654,333 square feet of space under construction in the market area. There were 20 quarters that reported construction over the past five years. The largest amount of construction during this time period was in the third quarter of 2019, with 2,313,627 square feet constructed. Deliveries The most recent quarter reported 6 buildings delivered, containing 65,156 square feet of rentable area. There has been a total of 4,712,502 square feet in 197 buildings over the past five years. Absorption The most recent quarter reported negative 303,116 square feet of absorption. Absorption in the market over the past five years has been positive with an aggregate of 1,714,606 square feet absorbed. Page 42 Rental Rates and Vacancy The average quoted rental rate in the Tampa Bay MSA market was $25.23 per square foot for the most recent quarter. This represents the highest rental rate over the past 20 quarters. The lowest rental rate over the past five years in the market was in the second quarter of 2017 at $19.24 per square foot. The vacancy rate in the Tampa Bay MSA market was 8.1% in the most recent quarter. The following table presents the vacancy rate and rental rate relationship for the market area. Vacancy-Rental Rate Comparison 0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 Vacancy RatePeriod Rental Rate0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 Vacancy RatePeriod Rental RateThe above graph indicates the market’s vacancy rates have been slowly decreasing over the past five years, while the rental rates have been increasing as the economy continues to improve. Tampa Bay MSA Market Area Conclusion Overall, the Tampa Bay MSA market has been moderately growing with generally positive absorption figures, along with stable rental rates and stable vacancy rates. Based on all data presented, it has been concluded the market area is expected to display moderate growth into the foreseeable future. Page 43 Downtown Clearwater Submarket Area The following table presents the historical market performance for the submarket area. Downtown Clearwater Submarket Office Market Statistics Vacancy Direct Quarter Rate Rental Rate 2022 Q1 353 3,484,074 0 0 0 (182,084)4.8%$17.18 2021 Q4 353 3,484,074 0 0 0 8,408 3.3%$16.56 2021 Q3 353 3,484,074 0 0 0 (491)3.4%$16.90 2021 Q2 353 3,484,074 0 0 0 (6,588)3.5%$16.63 2021 Q1 353 3,484,074 0 0 0 10,621 3.3%$16.31 2020 Q4 353 3,484,074 0 0 0 (33,009)3.7%$16.34 2020 Q3 353 3,484,074 0 0 0 21,093 2.7%$15.97 2020 Q2 353 3,484,074 0 0 0 2,728 3.0%$15.45 2020 Q1 353 3,484,074 0 0 0 2,090 3.4%$15.58 2019 Q4 353 3,484,074 0 0 0 14,510 3.4%$15.22 2019 Q3 353 3,484,074 0 0 0 15,058 3.9%$15.41 2019 Q2 353 3,484,074 0 0 0 28,749 4.3%$15.17 2019 Q1 353 3,484,074 0 0 0 260 4.6%$15.99 2018 Q4 353 3,484,074 0 0 0 64,497 4.8%$15.18 2018 Q3 353 3,484,074 0 0 0 13,905 7.0%$15.19 2018 Q2 353 3,484,074 0 0 0 6,967 7.3%$14.85 2018 Q1 353 3,484,074 0 0 0 (10,134)7.5%$14.15 2017 Q4 353 3,484,074 0 0 0 26,972 7.3%$14.26 2017 Q3 353 3,484,074 0 0 0 (33,976)8.0%$15.01 2017 Q2 353 3,484,074 0 0 0 (8,895)7.0%$14.73 Minimum 353 3,484,074 0 0 0 (182,084)2.7%$14.15 Maximum 353 3,484,074 0 0 0 64,497 8.0%$17.18 Median 353 3,484,074 0 0 0 4,848 4.1%$15.43 Mean 353 3,484,074 0 0 0 (2,966)4.8%$15.60 Number of Buildings Total Inventory Under Construction Net Absorption SF Total Buildings Delivered Square Feet Delivered Inventory The Downtown Clearwater submarket contains an overall inventory of 3,484,074 square feet of rentable area within 353 buildings. This equates to an average building size of 9,870 square feet. ConstructionThere is currently no space under construction in the market area. -- Deliveries The most recent quarter reported no deliveries. Absorption The most recent quarter reported negative 182,084 square feet of absorption. Absorption in the market over the past five years has been negative with an aggregate of 59,319 square feet absorbed. Page 44 Rental Rates and Vacancy The average quoted rental rate in the Downtown Clearwater market was $17.18 per square foot for the most recent quarter. This represents the highest rental rate over the past 20 quarters. The highest rental rate over the past five years in the market was in the first quarter of 2022 at $17.18 per square foot. The lowest rental rate over the past five years in the market was in the first quarter of 2018 at $14.15 per square foot. The vacancy rate in the Downtown Clearwater market was 4.8% in the most recent quarter. The following table presents the vacancy rate and rental rate relationship for the market area. Vacancy-Rental Rate Comparison 0 0.01 0.02 0.03 0.04 0.05 0.06 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 Vacancy RatePeriod Rental Rate0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 Vacancy RatePeriod Rental RateThe above graph indicates the market’s vacancy rates have been decreasing over the past five years, while the rental rates have been increasing as the economy continues to improve. Downtown Clearwater Market Area Conclusion Overall, the Downtown Clearwater submarket has been moderately growing with generally negative absorption figures, along with stable rental rates and stable vacancy rates. Based on all data presented, the submarket displays similar fundamentals compared to the market area; and it has been concluded the submarket area is expected to display moderate growth into the foreseeable future. Page 45 Legal Description Page 46 Page 47 Subject Photographs Exterior Exterior Exterior Exterior Page 48 Subject Photographs Exterior Exterior Exterior Exterior Page 49 Subject Photographs View Looking East on Pierce St (Subject on Left) View Looking North on S Osceola Ave (Subject on Right) Page 50 Plat Map (Outline is Approximate) Source: Pinellas County Property Appraiser Aerial Map (Outline is Approximate) Source: Pinellas County Property Appraiser Page 51 Flood Map Page 52 Land Sale Comparables ID 21712 Address 1258 & 1271 Court St City Clearwater State FL Zip 33756 County Pinellas Latitude 27.96135442 Longitude -82.78481627 Tax ID 15-29-15-38574-015-0060 Property Major Type Land Property Type Commercial Address 1258 & 1271 Court St Date 11/17/2021 City Clearwater Price $425,000 State FL Price per Acre $1,037,952 Zip 33756 Price per Land SF $23.83 Tax ID 15-29-15-38574-015-0060 Financing Conventional Grantor DJ Court, LLC Property Rights Fee Simple Grantee A.M.A. Sunshine Car Wash, LLC Conditions of Sale Arm's Length Legal Description Long Legal Days on Market Acres 0.41 Topography Gently Sloping Land SF 17,836 Zoning D Road Frontage Court St and Santa Rosa St Flood Zone Zone X Shape Irregular Encumbrance or Easement None Noted Utilities Available to Site Environmental Issues None Noted This 17,836 SF commercial land property located North of Court St and South of Santa Rosa St was sold on November 17, 2021, for a reported price of $425,000. This property was then two parcels that were merged into one after purchase. The buyer received approvals for the development of a 14-unit multifamily property. Site Transaction Land Comparable 1 Sale Comments Page 53 ID 21713 Address 701-714 N Fort Harrison Ave City Clearwater State FL Zip 33755 County Pinellas Latitude 27.97279461 Longitude -82.7998959 Tax ID 09-29-15-52200-000-0041 , 09- 29-15-52200-000-0010 , 09-29- 15-52200-000-0050 , 09-29-15- 52200-000-0040 Property Major Type Residential Property Type Residential Land (1 to 4 Lots) Address 701-714 N Fort Harrison Ave Date 12/16/2021 City Clearwater Price $1,600,000 State FL Price per Acre $2,085,261 Zip 33755 Price per Land SF $47.87 Tax ID 09-29-15-52200-000-0041 , 09-Financing Conventional Grantor Osceola Properties, Inc.Property Rights Fee Simple Grantee Caeruleum Development, LLC Conditions of Sale Arm's Length Legal Description Long Legal Days on Market 749 Acres 0.77 Topography Gently Sloping Land SF 33,423 Zoning D Road Frontage N Fort Harrison Ave, N Osceola Flood Zone Zone X Shape Rectangular Encumbrance or Easement None Noted Utilities All to Site Environmental Issues None Noted This 0.77-acre property located at 701-714 N Fort Harrison Ave, Clearwater, FL was sold on December 16, 2021, for a reported price of $1,600,000. The property sold with 7 apartments fully occupied and was marketed as an interim use during permitting and planning. According to the broker, the buyer expressed intentions to demolish the existing structures and redevelop the property. The property was previously owned by Osceola Properties Inc. The seller was represented by Gro Miller at Sunshine Professional Realty Corp. Land Comparable 2 Sale Comments Site Transaction Page 54 ID 21711 Address 639-645 Chestnut St City Clearwater State FL Zip 33756 County Pinellas Latitude 27.96042622 Longitude -82.7971478 Tax ID 15-29-15-54450-019-0030 Property Major Type Land Property Type Commercial Address 639-645 Chestnut St Date 3/15/2022 City Clearwater Price $960,000 State FL Price per Acre $1,319,914 Zip 33756 Price per Land SF $30.30 Tax ID 15-29-15-54450-019-0030 Financing Conventional Grantor Chestnut Development Property Rights Fee Simple Grantee Chestnut & Trail LLC Conditions of Sale Arm's Length Legal Description MAGNOLIA PARK BLK 19, LOTS Days on Market 5361 Acres 0.73 Topography Gently Sloping Land SF 31,682 Zoning D Road Frontage Chestnut St Flood Zone Zone X Shape Rectangular Encumbrance or Easement None Noted Utilities Available to Site Environmental Issues None Noted Transaction Land Comparable 3 This 0.73-acre commercial land property located at 645 Chestnut St, Clearwater, FL was sold on April 4, 2022, for a reported price of $960,000. The seller reports the sale as an arm's length transaction without any approvals. Site Sale Comments Page 55 ID 21786 Address 502 Palm Bluff St City Clearwater State FL Zip 33755 County Pinellas Latitude 27.97761932 Longitude -82.7977378 Tax ID 09-29-15-65466-000-0060, 09- Property Major Type Land Property Type Mixed Use Address 502 Palm Bluff St Date 4/26/2022 City Clearwater Price $1,240,000 State FL Price per Acre $1,778,645 Zip 33755 Price per Land SF $40.83 Tax ID 09-29-15-65466-000-0060, 09-Financing Conventional Grantor Palm Bluff Properties Llc Property Rights Fee Simple Grantee S & T Investors Group 1 LLC Conditions of Sale Arm's Length Legal Description Long Legal Days on Market 180 Acres 0.70 Topography Gently Sloping Land SF 30,368 Zoning C Road Frontage Palm Bluff, N Garden Ave and N Flood Zone Zone X Shape Irregular Encumbrance or Easement None Noted Utilities All to Site Environmental Issues None Noted Sale Comments This 0.7-acre commercial land property located at 502 Palm Bluff St, Clearwater, FL was sold on April 26, 2022, for a reported price of $1,240,000. The properties sold with well-maintained residential apartments that will be used for interim use. The buyer intends to redevelop the property into a 3-story overnight lodging facility. There were no approvals for redevelopment at the time of sale. Land Comparable 4 Transaction Site Page 56 Definitions Definitions are from The Dictionary of Real Estate Appraisal, 6th Edition (Dictionary), the Uniform Standards of Professional Appraisal Practice (USPAP), and Building Owners and Managers Association International (BOMA). Absolute Net LeaseA lease in which the tenant pays all expenses including structural maintenance, building reserves, and management; often a long-term lease to a credit tenant.1 Amortization The process of retiring a debt or recovering a capital investment, typically through scheduled, systematic repayment of the principal; a program of periodic contributions to a sinking fund or debt retirement fund.1 As Is Market Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.1 Base RentThe minimum rent stipulated in a lease.1 Base Year The year on which escalation clauses in a lease are based.1 Building Common Area In office buildings, the areas of the building that provide services to building tenants but which are not included in the office area or store area of any specific tenant. These areas may include, but shall not be limited to, main and auxiliary lobbies, atrium spaces at the level of the finished floor, concierge areas or security desks, conference rooms, lounges or vending areas, food service facilities, health or fitness centers, daycare facilities, locker or shower facilities, mail rooms, fire control rooms, fully enclosed courtyards outside the exterior walls, and building core and service areas such as fully enclosed mechanical or equipment rooms. Specifically excluded from building common area are floor common areas, parking space, portions of loading docks outside the building line, and major vertical penetrations.2 Building Rentable Area The sum of all floor rentable areas. Floor rentable area is the result of subtracting from the gross measured area of a floor the major vertical penetrations on that same floor. It is generally fixed for the life of the building and is rarely affected by changes in corridor size or configuration.2 Certificate of Occupancy (COO) A formal written acknowledgment by an appropriate unit of local government that a new construction or renovation project is at the stage where it meets applicable health and safety codes and is ready for commercial or residential occupancy.1 Common Area Maintenance (CAM)The expense of operating and maintaining common areas; may or may not include management charges and usually does not include capital expenditures on tenant improvements or other improvements to the property.1 The amount of money charged to tenants for their shares of maintaining a [shopping] center’s common area. The charge that a tenant pays for shared services and facilities such as electricity, security, and maintenance of parking lots. Items charged to common area maintenance may include cleaning services, parking lot sweeping and maintenance, snow removal, security and upkeep.3 Condominium A multiunit structure, or a unit within such a structure, with a condominium form of ownership.1 Conservation EasementAn interest in real estate restricting future land use to preservation, conservation, wildlife habitat, or some combination of those uses. A 1 Dictionary of Real Estate Appraisal, 6th Edition 2 Building Owners and Managers Association (BOMA) 3 International Council of Shopping Centers (ICSC), 4th Edition conservation easement may permit farming, timber harvesting, or other uses of a rural nature as well as some types of conservation-oriented development to continue, subject to the easement.1 Contributory Value A type of value that reflects the amount a property or component of a property contributes to the value of another asset or to the property as a whole. The change in the value of a property as a whole, whether positive or negative, resulting from the addition or deletion of a property component. Also called deprival value in some countries.1 Depreciation 1) In appraisal, a loss in property value from any cause; the difference between the cost of an improvement on the effective date of the appraisal and the market value of the improvement on the same date. 2) In accounting, an allocation of the original cost of an asset, amortizing the cost over the asset’s life; calculated using a variety of standard techniques.1 Disposition ValueThe most probable price that a specified interest in property should bring under the following conditions: Consummation of a sale within a specified time, which is shorter than the typical exposure time for such a property in that market. The property is subjected to market conditions prevailing as of the date of valuation; Both the buyer and seller are acting prudently and knowledgeably; The seller is under compulsion to sell; The buyer is typically motivated; Both parties are acting in what they consider to be their best interests; An adequate marketing effort will be made during the exposure time; Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto; and The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.4 Easement The right to use another’s land for a stated purpose.1 Effective Date 1. The date on which the appraisal or review opinion applies. (SVP) 2. In a lease document, the date upon which the lease goes into effect.1 Effective Gross Income (EGI) The anticipated income from all operations of the real estate after an allowance is made for vacancy and collection losses and an addition is made for any other income.1 Effective Rent Total base rent, or minimum rent stipulated in a lease, over the specified lease term minus rent concessions; the rent that is effectively paid by a tenant net of financial concessions provided by a landlord. (TIs).1 Excess LandLand that is not needed to serve or support the existing use. The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Excess land has the potential to be sold separately and is valued separately.1 4 Dictionary of Real Estate Appraisal, 6th Edition Page 57 Expense Stop A clause in a lease that limits the landlord’s expense obligation, which results in the lessee paying operating expenses above a stated level or amount.1 Exposure Time 1) The time a property remains on the market. 2) The estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; Comment: Exposure time is a retrospective opinion based on an analysis of past events assuming a competitive and open market.1 Extraordinary Assumption An assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. Comment: Uncertain information might include physical, legal, or economic characteristics of the subject property; or conditions external to the property, such as market conditions or trends; or the integrity of data used in an analysis. (USPAP, 2018-2019 ed.) 5 Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.1 Floor Common Area In an office building, the areas on a floor such as washrooms, janitorial closets, electrical rooms, telephone rooms, mechanical rooms, elevator lobbies, and public corridors which are available primarily for the use of tenants on that floor.6 Full Service (Gross) Lease A lease in which the landlord receives stipulated rent and is obligated to pay all of the property’s operating and fixed expenses; also called a full service lease.1 Furniture, Fixtures, and Equipment (FF&E) Business trade fixtures and personal property, exclusive of inventory.1 Going-Concern ValueAn outdated label for the market value of all the tangible and intangible assets of an established and operating business with an indefinite life, as if sold in aggregate; more accurately termed the market value of the going concern or market value of the total assets of the business.7 Gross Building Area (GBA) 1) Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of the above-grade area. This includes mezzanines and basements if and when typically included in the market area of the type of property involved. 2) Gross leasable area plus all common areas. 3) For residential space, the total area of all floor levels measured from the exterior of the walls and including the superstructure and substructure basement; typically does not include garage space.1 Gross Leasable Area (GLA) Total floor area designed for the occupancy and exclusive use of tenants, including basements and mezzanines; measured from the center of joint partitioning to the outside wall surfaces.1 Gross Up Method A method of calculating variable operating expenses in income-producing properties when less than 100% occupancy is assumed. Expenses reimbursed based on the amount of occupied space, rather than on the total building area, are described as “grossed up.”1 Gross Retail Sellout The sum of the separate and distinct market value opinions for each of the units in a condominium, subdivision development, or portfolio of properties, as of the date of valuation. The aggregate of retail values 5 USPAP, 2018-2019 ed. 6 Building Owners and Managers Association (BOMA) 7 Dictionary of Real Estate Appraisal, 6th Edition does not represent the value of all the units as though sold together in a single transaction; it is simply the total of the individual market value conclusions. Also called the aggregate of the retail values, aggregate retail selling price or sum of the retail values.1 Ground Lease A lease that grants the right to use and occupy land. Improvements made by the ground lessee typically revert to the ground lessor at the end of the lease term.1 Ground Rent The rent paid for the right to use and occupy land according to the terms of a ground lease; the portion of the total rent allocated to the underlying land.1 Hypothetical Condition 1) A condition that is presumed to be true when it is known to be false. (SVP – Standards of Valuation Practice, effective January 1, 2015) 2) A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. Comment: Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. (USPAP, 2016-2017 ed.)1 Insurable Value A type of value for insurance purposes. (Typically this includes replacement cost less basement excavation, foundation, underground piping and architect’s fees).1 Investment Value The value of a property to a particular investor or class of investors based on the investor’s specific requirements. Investment value may be different from market value because it depends on a set of investment criteria that are not necessarily typical of the market.1 Leased Fee Interest The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires.1 Leasehold Interest The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease.1 Liquidation Value The most probable price that a specified interest in property should bring under the following conditions: Consummation of a sale within a short time period. The property is subjected to market conditions prevailing as of the date of valuation. Both the buyer and seller are acting prudently and knowledgeably. The seller is under extreme compulsion to sell. The buyer is typically motivated. Both parties are acting in what they consider to be their best interests. A normal marketing effort is not possible due to the brief exposure time. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.1 Page 58 Market Rent The most probable rent that a property should bring in a competitive and open market reflecting the conditions and restrictions of a specified lease agreement, including the rental adjustment and revaluation, permitted uses, use restrictions, expense obligations; term, concessions, renewal and purchase options and tenant improvements (TIs).1 Market Value The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: Buyer and seller are typically motivated; Both parties are well informed or well advised, and acting in what they consider their own best interests; A reasonable time is allowed for exposure in the open market; Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.1 Marketing Time An opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of an appraisal. (Advisory Opinion 7 of the Appraisal Standards Board of the Appraisal Foundation and Statement on Appraisal Standards No. 6, “Reasonable Exposure Time in Real Property and Personal Property Market Value Opinions” address the determination of reasonable exposure and marketing time.)1 Modified Gross Lease A lease in which the landlord receives stipulated rent and is obligated to pay some, but not all, of the property’s operating and fixed expenses. Since assignment of expenses varies among modified gross leases, expense responsibility must always be specified. In some markets, a modified gross lease may be called a double net lease, net net lease, partial net lease, or semi-gross lease.1 Operating Expense Ratio The ratio of total operating expenses to effective gross income (TOE/EGI); the complement of the net income ratio, i.e., OER = 1 – NIR1 Partial Interest Divided or undivided rights in real estate that represent less than the whole, i.e., a fractional interest such as a tenancy in common, easement, or life interest.1 Pass Through A tenant’s portion of operating expenses that may be composed of common area maintenance (CAM), real property taxes, property insurance, and any other expenses determined in the lease agreement to be paid by the tenant.1 Potential Gross Income (PGI) The total income attributable to property at full occupancy before vacancy and operating expenses are deducted.1 Prospective Future Value Upon Completion A prospective market value may be appropriate for the valuation of a property interest related to a credit decision for a proposed development or renovation project. According to USPAP, an appraisal with a prospective market value reflects an effective date that is subsequent to the date of the appraisal report. … The prospective market value –as completed- reflects the property’s market value as of the time that development is expected to be complete.1 Prospective Future Value Upon Stabilization A prospective market value may be appropriate for the valuation of a property interest related to a credit decision for a proposed development or renovation project. According to USPAP, an appraisal with a prospective market value reflects an effective date that is subsequent to the date of the appraisal report …The prospective market value – as stabilized – reflects the property’s market value as of the time the property is projected to achieve stabilized occupancy. For an income-producing property, stabilized occupancy is the occupancy level that a property is expected to achieve after the property is exposed to the market for lease over a reasonable period of time and at comparable terms and conditions to other similar properties.1 Rentable Area For office buildings, the tenant’s pro rata portion of the entire office floor, excluding elements of the building that penetrate through the floor to the areas below. The rentable area of a floor is computed by measuring the inside finished surface of the dominant portion of the permanent building walls, excluding any major permanent penetrations of the floor. Alternatively, the amount of space on which the rent is based; calculated according to local practice.1 Replacement Cost The estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvements, using modern materials and current standards, design, and layout.1 Reproduction Cost The estimated cost to construct, at current prices as of the effective date of the appraisal, an exact duplicate or replica of the building being appraised, using the same materials, construction standards, design, layout, and quality of workmanship and embodying all of the deficiencies, superadequacies, and obsolescence of the subject building.1 Retrospective Value Opinion A value opinion effective as of a specified historical date. The term retrospective does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective market value opinion.”1 Surplus Land Land that is not currently needed to support the existing use but cannot be separated from the property and sold off for another use. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel.1 Triple Net (Net Net Net) Lease An alternative term for a type of net lease. In some markets, a net net net lease is defined as a lease in which the tenant assumes all expenses (fixed and variable) of operating a property except that the landlord is responsible for structural maintenance, building reserves, and management; also called NNN lease, net net net lease, or fully net lease.1 Value-in-Use The value of a property assuming a specific use, which may or may not be the property’s highest and best use on the effective date of the appraisal. Value in use may or may not be equal to market value but is different conceptually. Page 59 Qualifications Page 60 Page 61 Page 62 APPRAISAL OF DOWNTOWN CORE SITE/LAND ONLY/LAND ONLY (PEACE MEMORIAL PRESBYTERIAN CHURCH PROPERTY) 107 S. OSCEOLA AVENUE CLEARWATER, FLORIDA 33756 (22017) FOR SUZANNE KRAMER, REAL ESTATE SERVICES COORDINATOR ENGINEERING DEPARTMENT CITY OF CLEARWATER 100 S. MYRTLE AVENUE CLEARWATER, FL 33756 May 9, 2022 Suzanne Kramer, Real Estate Services Coordinator Engineering Department City of Clearwater 100 S. Myrtle Avenue Clearwater, FL 33756 Dear Ms. Kramer: Re: Downtown Core Site/Land Only (Peace Memorial Presbyterian Church Property) 107 S. Osceola Avenue, Clearwater, Florida 33756 As requested, I have made a detailed investigation, analysis, and appraisal of the fee simple interest of the referenced property, legally described later in the report. This appraisal has been prepared for our client, City of Clearwater; Intended Use- Assist client in potential purchase of subject property. Intended user- City of Clearwater. In my opinion, the fee simple interest of appraised property, Downtown Core Site/Land Only (Peace Memorial Presbyterian Church Property), 107 S. Osceola Avenue, Clearwater, Florida 33756, had a market value “AS IS”, as of the effective date, May 4, 2022, of FOUR MILLION EIGHT HUNDRED FIFTY-FIVE THOUSAND DOLLARS ($4,855,000). The report is an Appraisal Report, which has been prepared in compliance with the provisions of FIRREA, USPAP, the Interagency Guidelines, and the specific contractual requirements of the client, City of Clearwater. The appraiser meets the competency requirements of USPAP for this assign- ment. The appraiser has not previously appraised subject property nor provided other professional services with respect to it in the last three years. Respectfully submitted, TOBIAS REALTY ADVISORS, LLC C. Richard Tobias, MAI State-Certified General Real Estate Appraiser RZ705 AERIAL VIEW OF SUBJECT NEIGHBORHOOD AERIAL VIEW OF SUBJECT FROM SOUTH AERIAL VIEW OF SITE FROM EAST AERIAL PLAT OF SUBJECT SITE VIEW OF SITE FROM ITS SOUTHWEST CORNER VIEW FROM PIERCE STREET LOOKING NORTH VIEW FROM SOUTHEAST CORNER OF SITE SUBJECT FROM PIERCE STREET LOOKING NORTH ALONG ALLEY 2-STORY BUILDING IN NORTH SECTION OF SITE; VIEW FROM ALLEY 2-STORY BUILDING FRONTING S. OSCEOLA AVENUE PINELLAS COUNTY UTILITIES FACILITY NORTH OF SUBJECT ON S. OSCEOLA AVENUE FORMER CITY HALL PROPERTY DUE WEST OF SUBJECT VIEW SOUTH ON OSCEOLA AV TOWARD COURTHOUSE; SUBJECT AT LOWER LEFT VIEW EAST ON PIERCE STREET TO S. FT. HARRISON AVENUE TOBIAS REALTY ADVISORS, LLC 2 APPRAISAL REPORT Property Identification: Downtown Core Site/Land Only (Peace Memo- rial Presbyterian Church Property), 107 S. Os- ceola Avenue, Clearwater, Florida 33756; the 0.83-acre site is located at the northeast corner of S. Osceola Avenue and Pierce Street in the west edge of Downtown Clearwater in the Downtown Core Character District. Client: Suzanne Kramer, Real Estate Services Coordinator Engineering Department City of Clearwater 100 S. Myrtle Avenue Clearwater, FL 33756 Client Type: Municipality Appraiser: C. Richard Tobias, MAI State Certified General Appraiser, RZ705 Purpose of the Appraisal: To provide the client with an opinion of market value “as is” as defined by the Interagency Ap- praisal and Evaluation Guidelines. USPAP Competency: The appraiser has 42 years of experience in commercial properties of subject’s type in Pinel- las County, Florida. Market Value is “The most probable price which a property should bring in a competitive and open market un- der all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably, and assum- ing the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and each acting in what they consider their own best interest; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and, the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by any- one associated with the sale.” 1 1 Interagency Appraisal and Evaluation Guidelines, Department of the Treasury; December 2010. TOBIAS REALTY ADVISORS, LLC 3 Intended Use Of Report: Assist client in potential purchase of subject property Intended User: City of Clearwater Interest Valued: Fee simple Property Owner: Peace Memorial Presbyterian Church 3-Year Sales History: Subject property has been owned by the church for several decades. The subject property has not been listed for sale or otherwise been under contract during the last three years. A Notice of Commencement was filed March 30, 2022 with the Pinellas County Clerk for asbestos abate- ment and demolition of the 2-story education building on site. Date of Inspection: May 4, 2022 Effective Date of Value: May 4, 2022 Scope of Work: Inspection of the subject site; Analysis of regional and neighborhood data with emphasis upon the market for major sites in Downtown Clearwater; Description of property and site improve- ments; Analysis of zoning, utilities, services, prop- erty taxes, site, and improvements; Highest and best use analysis; Cost approach to value was excluded as the subject is vacant land; Land valuation by sales comparison was un- dertaken as the only relevant approach; re- cent comparable sales of CBD development sites in the Pinellas County market were re- searched and confirmed; adjustments were made to the comparable sales where they materially differed from the subject proper- ty; comparables were analyzed on basis of price per dwelling unit and price per square foot of land area; comparables were ranked based on their overall comparability; results TOBIAS REALTY ADVISORS, LLC 4 of this analysis identified the market value of this property “as is” in fee simple interest Income capitalization approach was exclud- ed as subject is undeveloped land; Reconciliation of the data and values to pro- vide conclusion of market value “as is” in fee simple interest. Legal Description: The South ½ of Lot 11 and all of Lots 12 through 15, Block B, of John R. Davey’s Re- Subdivision (abridged). Zoning: D, Downtown District; City of Clearwater; as such there is a wide variety of permitted uses. The Level 1 uses with minimum standards in- clude multi-family, bars, brewpubs, congregate care facilities, medical clinics, museums, offic- es, hotels, places of worship, research and tech- nology facilities, restaurants, retail, schools, and community centers. In addition to the above permitted uses, Level 1 flexible standard uses include educational facilities, government uses, micro-breweries, and nightclubs. Maximum FAR: 4.0 (would yield building of 144,000 sq. ft. MOL) Maximum Residential Density: 75 units per acre (would yield roughly 62 units) Maximum Hotel Density: 95 units per acre (78 units) Maximum Building Height: Unlimited Future Land Use Plan (FLUP): CBD, Central Business District; current zoning consistent with FLUP. Character District: Downtown Core Tax Parcel Numbers: 16-29-15-20358-002-0110 Property Assessment (2021): $904,573 Millage Rate (2021): 21.2916 TOBIAS REALTY ADVISORS, LLC 5 Real Estate Taxes (2021): $0.00; property 100% exempt as church-owned. DeLorme Street Atlas USA® 2013 NEIGHBORHOOD MAP Data use subject to license. © DeLorme. DeLorme Street Atlas USA® 2013. www.delorme.com TN MN (5.9°W) 0 400 800 1200 1600 2000 0 140 280 420 560 700 ftm Scale 1 : 16,000 1" = 1,333.3 ft Data Zoom 13-6 TOBIAS REALTY ADVISORS, LLC 6 Neighborhood Description: The subject property is located at 107 S. Osceola Avenue (at the northeast corner of Osceola and Pierce) due east of the former Clearwater City Hall; site is also located in the west edge of Downtown Clearwater in the Downtown Core Character District; the property sits on a bluff over- looking Clearwater Harbor and Memorial Causeway leading to Clearwater Beach. Clearwater is the county seat of Pinellas County and its second largest municipality (117,698); it is located in north central Pinellas and spans roughly two-thirds of the peninsula from Clearwater Beach eastward to McMullen- Booth Road; the city’s northerly limits are at Union Street approximately 1.9 miles north of the subject site. According to the 2000 U.S. Census, the population of Clearwater was 109,268, making it the second largest community in Pinellas County behind St. Petersburg (247,894); as of 2010 Clearwater’s population had de- clined slightly to 108,759; as of 2021 the population has grown by 8.2% to 117,698. St. Petersburg is located at the south end of the county, approximately 12 miles south of the subject property; Downtown Clearwater (Core Dis- trict), site of the Pinellas County Courthouse and gov- ernment center, is the location of the subject. Clearwater is a sprawling community bounded on the north by Palm Harbor and Dunedin and on the south by Largo; it ex- tends across the Pinellas peninsula from Clearwater Beach eastward approximately 7 miles to Old Tampa Bay. U.S. Highway 19 is a six-lane, limited access highway; there is an elevated interchange with Gulf-to-Bay Boule- vard, 4.0 miles east of the subject. It is the primary north/south artery in Pinellas County and along much of Florida's west coast. According to the latest FDOT Traf- fic Count Map, approximately 119,000 cars utilize this roadway daily in Clearwater. Gulf-to-Bay Boulevard (SR 60) is a six-lane, east/west artery spanning the center portion of Clearwater; it lies ½ mile south of Drew Street and is the primary commercial artery linking US Highway 19 and the CBD; daily traffic TOBIAS REALTY ADVISORS, LLC 7 count is 51,500 just east of the intersection of Court Street and Highland Avenue; volume drops significantly to 5,000 in the northwest leg of Gulf-to-Bay, which links with Cleveland Street. Cleveland Street lies 2 blocks north of the subject and provides linkage within the CBD; it extends 1.2 miles west through Downtown, where it terminates at Coach- man Park (site of Imagine Clearwater) just ¼ mile north- west of the subject property; Cleveland had formerly been the approach to Clearwater Causeway, which links the CBD with Clearwater Beach; following the construc- tion of the new, elevated span the beach traffic is routed west on Court Street through the CBD. Court Street (SR 60) lies 2 blocks south of the subject and provides linkage within the CBD; it extends from the Highland Avenue intersection west through the CBD to Clearwater’s Memorial Causeway (to Clearwater Beach); following the construction of the new span the beach traf- fic is now routed west on Court Street through the CBD, where the daily traffic count is 15,500. Drew Street (SR 590) is 0.3 miles north of the subject and acts as an alternative east/west artery linking US Highway 19 with the CBD; it carries 13,500 cars per day in the west section. Keene Road (CR 1) is 2.0 miles east of the subject; it is a 4-lane, north/south artery linking Clearwater with Largo and Seminole to the south as well as Dunedin and Palm Harbor to the north; traffic count is 27,359 south of Gulf- to Bay. Ft. Harrison Avenue is ½ block east of the subject; it is a 2-lane, north/south roadway linking the Downtown Core Area with Old Bay District; at the Dunedin city lim- its it becomes Edgewater Drive; traffic count is 14,862 in South Gateway just south of the Core; South Ft. Harrison extends south from the Core District accessing Morton Plant Hospital (0.3 miles south of subject) and the area known as South Gateway. TOBIAS REALTY ADVISORS, LLC 8 Myrtle Avenue lies 4 blocks east of the subject site; it is a multi-lane, north/south artery extending through the east portion of the Core District roughly 0.3 miles east of S. Ft. Harrison Avenue; it currently carries 15,600 cars per day in Downtown Clearwater. The highway infrastructure described above provides av- erage to good access to most population centers through- out Pinellas County and the greater Tampa Bay area. Access is particularly good from Largo, Dunedin, and Safety Harbor to the east as well as the Clearwater CBD Core. Morton Plant Hospital is a primary traffic generator for the CBD. It is the 5th largest medical center in the Tampa Bay area with 687 beds and 546 affiliated physicians; Morton Plant is also a major employer in the county with 2,200 employees. Similar to most major hospitals in the area it has attracted extensive satellite development of medical offices, clinics, outpatient centers, and other healthcare relate uses. Some ancillary office development has extended east of the Core District but the bulk of this activity lies in the South Gateway District. As the county seat, downtown Clearwater is home to many Pinellas County government and agency offices that employ several thousand persons. The county court- house and government complex, which are located west of South Ft. Harrison between Court and Chestnut Streets, has steadily expanded over the last 20 years to the surrounding blocks. The City of Clearwater houses its numerous employees and departments in several loca- tions throughout the Core District but primarily 3 blocks east of the subject (Municipal Services Center, Police Headquarters, and Fire Department Headquarters). Another major factor that has influenced downtown Clearwater for the past three decades is the Church of Scientology (COS). This religious group has its interna- tional headquarters located in the Ft. Harrison Hotel, just north of the county courthouse and south of the subject. A substantial administrative staff is located at this facility on a permanent basis, and thousands of church members TOBIAS REALTY ADVISORS, LLC 9 regularly visit Clearwater for extended periods of training and study. Over the years the COS has steadily expanded its property holdings throughout the Downtown Core area and northward into Old Bay. The Flag Building (or Super Power Building) is a 7-story, 353,000-square foot facility that opened in 2103 after several years of construction; it is located ½ block east of the subject property. A multi- level parking structure supporting the COS facilities is located 2 blocks southeast. In the block southwest of the subject is the church’s Oak Cove retreat, a 13-story con- dominium with 232 units built in 1975 (1.8-acre site). The church's headquarters has generated an enormous economic impact in terms of housing, retail sales and ser- vices in the downtown area. Several high-rise condominiums were built in downtown Clearwater during the recent development boom (2004 through 2006); most of these projects experienced stalled sellouts as the market collapsed in mid-2006, followed by the credit crisis and national recession. A modest recov- ery commenced in 2013 with a resumption of condomini- um sales in Downtown. Also, a 257-unit, high-end, rental community (The Nolen) was developed in 2016/2017 in the Prospect Lake area east of Downtown. 1100 Apex, a 15-story complex, was completed in 2019 and has 134, market-level, rental units. Other smaller multi-family pro- jects have also had reasonable success in the recovery pe- riod in Downtown. One block north of the subject on S. Osceola Avenue is the Waters Edge Condominium, a 26-story complex with 155 residential units built in 2008; after a troubled start during the market collapse we now see resales averaging $650,000 in the lower and mid-level floors to $1,575,000 for a 3,400-square foot penthouse on the 26th floor. The former City Hall property and the former Aquarium par- cel (SW corner of Osceola and Pierce) represent A+ con- dominium or hotel sites similar to Waters Edge; the only negative aspect is that they will tend to diminish the view amenity of the Harbor for the subject site on the east side of Osceola Avenue. TOBIAS REALTY ADVISORS, LLC 10 The City of Clearwater embarked in early 2018 on the design phase of Imagine Clearwater, a beautification and revitalization project covering 66 acres in the Coachman Park area overlooking Clearwater Harbor (two blocks northwest of the subject site). This will include an expan- sion of the band shell to encourage larger entertainment opportunities in Downtown, thus driving greater demand for goods and services for Clearwater businesses. This $84 million project, which will follow the extensive in- frastructure investments of recent years (Memorial Causeway Bridge, Town Lake drainage, Cleveland Street re-design, Capitol Theater rehab, and others) should pro- vide the impetus for additional Downtown housing simi- lar to what has been experienced in St. Petersburg and Tampa. Assuming national economic prosperity continues, Downtown Clearwater appears poised to finally achieve the growth and revitalization many of the urban centers in Florida have experienced in the last 5+ years. The Core District will likely see new, high-end, condominium and apartment development in the next few years and the cen- tral and east sections should experience moderate-priced condominium and rental apartment development similar to the Nolen project in the Town Lake area east of the Core District. This will result in some block consolidation and assemblage with upward trending land prices where older obsolete structures are absorbed and razed. The Downtown Clearwater market is unlike any other in Tampa Bay and possibly, the State of Florida. The magni- tude of the involvement of COS in this market over- whelms it. The motivations of sales and purchases by COS and its members stand apart from those of on non- COS investors. As a result we see transactions involving COS and affiliates sometimes reflecting price ranges typ- ical of the broader market but many times greatly exceed- ing strict economic metrics. Summarizing, the Downtown Clearwater market is extremely asymmetrical because of these atypical seller/buyer motivations and the economic- based investors are confronted with a confusing and diffi- cult business environment in an otherwise exceptional CBD. TOBIAS REALTY ADVISORS, LLC 11 Utilities/Services: Water: Clearwater Sewer: Clearwater Electric: Duke Energy Telephone: Frontier Communications Police: Clearwater Police Department Fire/EMS: Clearwater Fire & Rescue Public Transportation: PSTA (bus) Site Data: Physical Location: Northeast corner of S. Osceola Avenue and Pierce Street, Downtown Clearwater Survey: None available Street Address: 107 S. Osceola Avenue Land Area: 36,000 square feet or 0.83 acres MOL Configuration: Rectangular Site Position: Corner (non-signalized) Primary Frontage: 225 Feet MOL; west side of S. Osceola Avenue Secondary Frontage: 160 Feet MOL; north side of Pierce Street Additional Frontage: 225 Feet MOL; west side of public alley Average Depth: 160 Feet MOL (East/West) Land/Bldg. Ratio: 2.4:1 (considering existing 2-story structure) Developed FAR: 0.42 Topography/Drainage: Level site at road grade; parcel sits on a bluff over- looking Clearwater Harbor roughly ¼ mile to west; good drainage typical of the immediate area Easements: Typical utility and drainage easements TOBIAS REALTY ADVISORS, LLC 12 Encroachments: None apparent Flood Designation: Zone X-Unshaded, area of minimal flood hazard; FEMA Map Panel 12103C 0108H; May 17, 2005 Visibility Good visibility from surrounding streets Access: Above average access by virtue of street frontage on two sides of tract and alley to east View Amenity: Site has good views of Clearwater Harbor, marina, Coachman Park, and distant views of Clearwater Beach at present; this amenity will be diminished with development of former City Hall and Aquari- um parcels to west Conclusion: The site’s primary assets are its relatively large size for CDB, west edge location in Core District, good dimensions and configuration, as well as its limited view amenities. TOBIAS REALTY ADVISORS, LLC 13 Highest and Best Use: The subject property is an above average sized site front- ing two streets in the west edge of the Core District of Downtown Clearwater. It has some favorable aspects that are balanced by some negative conditions. The positive factors include: 1- Location in west edge of Downtown Clearwater Core District overlooking Memorial Causeway and Clear- water Harbor 2- Several access points with frontage on two local streets and a public alley 3- Above average visibility and limited view amenities 4- Cleveland Street 2 blocks north and S. Ft. Harrison Avenue ½ block east 5- All public utilities and services available 6- Zoning is D, Downtown District located in Core Character District 7- Future Land Use Plan is CBD, Central Business Dis- trict 8- Good highway infrastructure linking several commu- nities in Pinellas County 9- Complimentary uses in immediate area such as offic- es, government buildings, high-rise condominiums and major CBD properties 10- Site is designated as minimal flood hazard 11- Close proximity to Coachman Park in Downtown Core and the approved expansion of waterfront park land in the Imagine Clearwater program 12- Steady improvement in commercial market since 2012 with upward trend in rents and occupancy 13- Residential market in 10th year of steady recovery in Pinellas County; condominium development has surged in Tampa and St. Petersburg but to a lesser de- gree in Clearwater 14- Much better equity and credit availability than 2009- 2012 period 15- Steady improvement in employment in Pinellas County and Tampa Bay area TOBIAS REALTY ADVISORS, LLC 14 The subject property also has some negative aspects that include: 1- Economic disruption over last 24 months due to glob- al pandemic 2- Clearwater CBD market has lagged behind those of Tampa and St. Petersburg in redevelopment 3- Recent emergence of high inflation with expected in- creases in interest rates Given the mostly positive assessment of the subject prop- erty and its market, I have concluded highest and best use to be high-rise, residential condominium development. Marketability: Subject property’s marketability is rated good at this time. This assessment is based on the economic factors enumerated in the highest and best use analysis and the input of local commercial brokers. Potential buyers are likely to be national and regional condominium develop- ers. Estimated Marketing Time: 12 months Estimated Exposure Time: 12 months Valuation Process: Cost approach was excluded as the subject property is vacant land with highest and best use as a high-rise condominium development. Sales comparison approach (Land) was adopted as the sole, relevant methodology as prime CBD sites are regularly traded in the Tampa Bay area; the most common units of measure in the market are price per square foot of land area or price per developable dwelling unit. Income capitalization approach was excluded as the subject property is vacant land with highest and best use as a high-rise condominium development. TOBIAS REALTY ADVISORS, LLC 15 Land Valuation- The procedure involves estimation of land value by the sales comparison approach, compar- ing subject site with similar sites which have recently sold. These comparable sales are re- duced to a common denominator or unit of comparison, such as price per square foot or price per dwelling unit. Adjustments are made to the sale properties for such factors as changes in market conditions since date of sale, zoning, location, and physical characteristics, reducing dissimilarities and arriving at an estimate of value for the subject site. I have selected six CBD land sales from two, major Pinellas County markets (Clearwater and St. Petersburg) as the best available indicators of subject’s current land value. The St. Peters- burg sales were included as that market is more advanced than Clearwater with respect to high-rise, multi-family redevelopment and the corresponding level of activity. It is apparent that the Downtown Clearwater condominium market is set to erupt as there have been some recent successes such as Marina Bay in the Old Bay District and strong re-sales in Waters Edge (2008) and Bay View (2004). Also, the locational and functional aspects of the subject site identify it as a prime condominium target by the numerous developers already active in Pinellas County. For these reasons I have expanded the market research to include St. Peters- burg and have also focused the analysis upon a price per developable unit basis. Subject site is calculated to have a reasonable capacity of 62 units at the maximum density of 75 units per acre. COMPARATIVE ANALYSIS: The reader is referred to the Comparable Land Sales chart on page 18, which summarizes the comparative analysis on a price per square foot basis. Land Sale 1 is the pending purchase of the 1.09-acre, Fire Station 45 (closed) property locat- ed two blocks east of the subject site in the Core District; first, an upward adjustment was indicated for the 2019 contract date; the location was rated much inferior to the subject due to the subject’s position in the west edge and its view amenities of Clearwater Harbor, etc.; also, the sale was rated slightly inferior to subject in physical factors(corner and dimensions); oth- er categories produced neutral comparisons; Sale 1 indicated a unit value of $34,568 per dwelling unit, which establishes the lower limit of the range; this property is clearly identi- fied as a rental apartment site as opposed to a high-value, condominium project. Land Sale 2 is the assemblage purchase in April 2019 of a 4.01-acre, under-developed prop- erty 1.5 blocks north of the Core District in Old Bay; first, upward adjustment was applied for improvement in market conditions since 2019; the location was rated inferior to the sub- ject (Old Bay versus Core District) and lack of harbor proximity; also, the sale was rated slightly inferior to subject in physical factors(corner and dimensions); other categories pro- duced neutral comparisons; Sale 2 indicated a unit value of $60,028 per dwelling unit, which TOBIAS REALTY ADVISORS, LLC 16 is 21% less than the mean of the data ($76,240). This property also is identified as better candidate for rental apartments than condominiums. Land Sale 3 is the assemblage purchase in December 2021 of a 0.77-acre, 4-parcel, under- developed property in Old Bay; the location was rated inferior to the subject in the Core Dis- trict but this site has some potential as a mid-rise, condominium with limited water views; other categories produced neutral comparisons; Sale 3 indicated a unit value of $77,439 per dwelling unit, which is 6.2% less than the mean of the data ($76,240). Land Sale 4 is the assemblage purchase in early 2018 of a 1.28-acre, under-developed prop- erty two blocks southwest of the subject in the Core District; first, an upward adjustment was applied for improvement in market conditions since 2018; the location was rated inferior to the subject as it has considerable potential as a hotel site but lacks the water view amenities of the subject; other categories produced neutral comparisons; Sale 4 indicated a unit value of $67,813 per unit, which is 11% less than the mean of the data ($76,240). Land Sale 5 is the purchase in 2013 of a 0.54-acre, under-developed property near Straub Park and Tampa Bay in St. Petersburg; first, a large upward adjustment was applied for im- provement in market conditions since 2013; the location was rated much superior as it has similar water views as the subject but the St. Petersburg market is well ahead of Clearwater in condominium development and sales activity; also, the sale was rated slightly inferior to subject in physical factors(corner and dimensions); other categories produced neutral com- parisons; Sale 5 indicated a unit value of $110,647 per unit, which is 45% greater than the mean of the data ($76,240). Land Sale 6 is the purchase in 2021 of a 0.55-acre, under-developed property near Straub Park and Tampa Bay in St. Petersburg; it is also situated adjacent west of Sale 5; the location was rated much superior as it has similar water views as the subject but the St. Petersburg market is well ahead of Clearwater in condominium development and sales activity; also, the sale was rated slightly inferior to subject in physical factors(corner and dimensions); other categories produced neutral comparisons; Sale 6 indicated a unit value of $112,903 per unit, which is 48% greater than the mean of the data ($76,240). The adjusted unit values of the six comparables range from $34,568 (Sale 1) to $112,903 (Sale 6), resulting in an extremely broad variance of 227%. The adjusted mean price was $76,240 per unit and the median was $69,647. Excluding the low outlier, No. 1, the variance is reduced to 88%. Sales 2, 3 and 4 vary by just 19%. I have assigned statistical weights to the sales based upon their overall degree of comparabil- ity. Sales 3 and 4 emerge as the most relevant indicators of value for the subject site and were TOBIAS REALTY ADVISORS, LLC 17 given greater emphasis than the other data; secondary weight was assigned to Sales 2, 5, and 6. The weighted mean of the sales was slightly greater than the natural mean. Therefore, based upon my analysis of the six comparable sales, I have selected a unit value of $78,300 per dwelling unit for the subject site: 62 Units @ $78,300 = $4,854,600 Rounded, $4,855,000 22017LS Comparable Land Sales Sale Number Subject 1 2 3 4 5 6 Location 107 S Osceola Av 610 Franklin St E/S of N Ft Harrison Av 180' N of Jones St NW Cor N Ft Harrison Av & Eldridge St 415 S Fort Harrison Av 146 4th Av NE 126 & 136 4th Av NE Clearwater Clearwater Clearwater Clearwater Clearwater St Petersburg St Petersburg Date May-22 Oct-19 Apr-19 Dec-21 Jan & Mar 2018 Oct-13 Dec-21 OR Book/Page X Contract 20503/1911 etal 21861/1345 19920/869 & 20000/2284 18192/1058 21854/841 GRANTOR X City of Clearwater Wikoff Properties, etal Osceola Properties, Inc Elan Vitale, LLC etal G&T Holdings of Pinellas, LLC Raysup, LLC GRANTEE X Blue Sky Communities, LLC Success Business, LLC Caeruleum Development, LLC IBP Funding, LLC Rowland Place, LLC DDA-126, LLC Parcel Number 16-29-15-20358-002-0110 15-29-15-54450-007-0010 09-29-15-37440-003-0040 etal 09-29-15-52200-000-0010 etal 16-29-15-18648-000-0470, 0280 19-31-17-73432-002-0010 19-31-17-77238-000-0080 etal Price X $2,000,000 $5,770,000 $1,600,000 $4,650,000 $2,090,000 $7,000,000 Gross Land Area (SF) 36,000 47,433 174,660 33,429 55,960 23,575 24,000 Price Per Sq Ft X $42.16 $33.04 $47.86 $83.10 $88.65 $291.67 Gross Land Area (AC) 0.83 1.09 4.01 0.77 1.28 0.54 0.55 Zoning/Character District D, Downtown/Core D, Downtown/Core D, Downtown/Old Bay D, Downtown/Old Bay D, Downtown/Core DC-3 DC-3 Improvements at Time of Sale Obsolete 2-St Bldg. & Surface Parking Fire Station 45 (1975)Several comml & industrial bldgs- older Older retail and residential bldgs 3-Story office (1927) + service station Older multi-family dwelling Historic structure and small inn Max Density (Units /Ac) 75.0 75.0 35.0 35.0 75.0 N/A; controlled by FAR N/A; controlled by FAR Max No of Units 62 81 140 27 96 17 31 Price Per Unit X $24,691 $41,115 $59,568 $48,438 $122,941 $225,806 Maximum FAR 4.00 4.00 1.50 1.50 4.00 4.00 4.00 Maximum Hotel Density (Units/Ac) 95 95 35 35 95 N/A N/A Maximum Bldg Height Unlimited Unlimited 55 55 Unlimited 300 Ft 300 Ft Highest/Best Use High-Rise Condo High-Rise Multi-Family/Mixed Use Mid-Rise Multi-Family/Mixed Use Mid-Rise Multi-Family or Condo Mixed use incl retail, restaurant, hotel High-Rise Condo High-Rise Condo Tract Shape Rectangle Flag shaped Rectangle Rectangle Generally Rectangular Rectangular Rectangular Other Corner site on bluff overlooking Clearwater Harbor, marina, and Coachman Park; due east of former City Hall & north of Ft Harrison Hotel Interior site with frontage on north and south; adjacent east of COS Hdqtrs facility (Flag Bldg) and west of CPD Hdqtrs; buyer plans high-rise low-income housing Large, assembled tract 1.5 blocks north of Core in Old Bay; frontage on N Garden also; largest parcel was highest unit price at $38.03 per SF 4-Parcel assemblage in Old Bay adjacent east of newer condo and Clrw Garden Club; listed at $1.7M and sold in 25 months Prime parcel in center of Downtown; acquired for development of 40-story hotel; multi-parcel assemblage with potential for road & alley vacations Redevelopment site in DTSP just west of Beach Drive, Straub Park, Vinoy Hotel and North Yacht Basin; Rowland Park Condo (17 units) built 2015 from $500K+ Redevelopment site in DTSP just west of Beach Drive, Straub Park, Vinoy Hotel and North Yacht Basin; Nolen Condo willl be 23 stories with units priced from $1.2M Utilities All Available All Available All Available All Available All Available All Available All Available Financing X Conventional + secondary loan by City Cash Sale Cash Sale Cash Sale Cash Sale Cash Sale Confirming Source X Chuck Lane (City of Clearwater) Sherry Lung (Buyer) Gro Miller (Broker) Daphna Fischler (Broker) Mike Cheezem (Buyer) A. J. Ribeiro (Seller) COS or Affiliate Purchase No No Yes Yes Yes No No Prior Sales (3 yrs)None None None None None None 2017; $3,876,500 ($125,048 per Unit) Price Per Dwelling Unit ADJUSTMENTS Financing X $0 $0 $0 $0 $0 $0 Cash Price Per DU X $24,691 $41,115 $59,568 $48,438 $122,941 $225,806 Market Conditions X 15% 18% 0% 20% 40% 0% Location X 20% 25% 20% 20% -55% -55% Land Size X 0% 0% 0% 0% 0% 0% Physical Factors X 5% 3% 0% 0% 5% 5% Max Density, Height, FAR X 0% 0% 0% 0% 0% 0% Other X 0% 0% 0% 0% 0% 0% Total Adjustment X 40% 46% 20% 40% -10% -50% Adjusted Price/DU X $34,568 $60,028 $71,482 $67,813 $110,647 $112,90318 SALE #1: 610 FRANKLIN STREET, CLEARWATER SALE #2: EAST SIDE OF N. FT. HARRISON; 180 FEET NORTH OF JONES ST., CLEARWATER SALE #3: NW COR N. FT HARRISON AV & ELDRIDGE ST, CLEARWATER SALE #4: 415 S. FORT HARRISON AVENUE, CLEARWATER SALE #5: 146 4TH AVENUE NE, ST PETERSBURG SALE #6: 126 & 136 4TH AVENUE NE, ST PETERSBURG DeLorme Street Atlas USA® 2013 LAND SALES MAP Data use subject to license. © DeLorme. DeLorme Street Atlas USA® 2013. www.delorme.com TN MN (5.9°W) 0 1 2 3 4 5 0 1 2 3 4 5 mikm Scale 1 : 175,000 1" = 2.76 mi Data Zoom 10-2 TOBIAS REALTY ADVISORS, LLC 19 Reconciliation: The subject of this appraisal is an oversized site of 36,000 square feet or 0.83 acres MOL overlooking Clearwater Harbor in the west edge of the Core District of Downtown Clearwa- ter. The marginally improved, corner site is located between the Pinellas County Courthouse and government offices and the Imagine Clearwater project now underway at Coachman Park. It is also proximate to several major holdings of the Church of Scientology such as Ft. Harrison Hotel, Flag Building, and Oak Cove Retreat. The condominium market in Downtown Clearwater has exhibited renewed vitality in the last 5 years albeit at a much smaller scale than the CBDs of Tampa and St. Petersburg. The 15- story, Station Square (2008) on Cleveland Street reveals numerous recent re-sales of mid-size units in the $300,000 to $500,000 range ($200 to $300 per sq. ft.); Waters Edge (2008), the 26-story complex adjacent northwest of subject site, shows 2021 re-sales in the $500,000 to $700,000 range for mid-level units with an average of $368.00 per square foot; Bay View (2004) in the Old Bay District is a 7-story building directly fronting the harbor with 2021 re- sales in the $560,000 to $779,000 range, or roughly $390 per square foot; newest entry in Old Bay is Marina Bay (2021) with developer sales from $800,000 to $900,000 for standard units ($400.00 to $700.00 per square foot). Reviewing Land Sale Nos. 6 and 7 from St. Petersburg, we see original developer sales (No. 6 Rowland Place) in 2015 averaging $525,000; these units have now appreciated 30 to 40% to the $900,000 to $1.2 million bracket. Sale 7 (Nolen) will have its units priced from $1.2 to $2.0 million in a 22-story building with many floors containing just one unit. Relating the land costs of these sites with good Tampa Bay views to their retail unit prices, we find a range of 10% to 16%. Relating this historic data from St. Petersburg to Downtown Clearwater, we see a typical re- sale unit at Waters Edge with price of $650,000 would impute a land contribution of $65,000 ($650,000 x .1 = $65,000). Likewise, a re-sale unit price of $700,000 at Bay View would in- dicate a land value of $70,000. And a new unit at Marina Bay priced at $850,000 would indi- cate land contribution of $85,000 at the 10% level (or $136,000 at the 16% level). Considering this market data and the potential for a developer’s profit margin, I would con- clude that highest and best use of subject site is a high-rise, residential condominium of 62 units MOL. The cost approach was excluded from this assignment as the subject property is vacant land with highest and best use as a high-rise condominium development. Sales comparison approach (Land) was adopted as the sole, relevant methodology as prime CBD sites are regularly traded in the Tampa Bay area; the most common units of measure in the market are price per square foot of land area or price per developable dwelling unit. TOBIAS REALTY ADVISORS, LLC 20 Income capitalization approach was also excluded as the subject property is vacant land with highest and best use as a high-rise condominium development. Six comparable land sales, 4 from Downtown Clearwater and 2 from St. Petersburg, formed the basis of our application of the sales comparison approach. Each sale was compared to the subject site in six categories found relevant to this property type; adjustments were applied to the sales where they were found to rate superior or inferior to the subject. Most adjustments were centered in the areas of market conditions (related to date of sale versus current date of valuation) and location. All but the very recent Sales 3 and 6 (both December 2021) required upward adjustment for market conditions. The four Clearwater sales were rated inferior in location either because of area (Old Bay versus Core) or lack of view amenity. The St. Pe- tersburg sales shared the view amenity of subject but the market is more mature, stronger, and the inventory of sites much smaller; thus downward adjustment was applied for the loca- tion category. Sales 3 and 4 (Clearwater) emerged as the most relevant indicators of value for the subject site and were given greater emphasis than the other data; secondary weight was assigned to Sales 2, 5, and 6 and the pending Sale 1 was given marginal weight. The data was processed on the basis of price per dwelling unit, given the conclusion of high- est and best use (high-rise condominium) and the differences in density, building height, and FAR. I concluded market value at $78,300 per dwelling unit for 62 units, or $4,855,000, rounded, as of May 4, 2022. TOBIAS REALTY ADVISORS, LLC 21 CERTIFICATION This is to certify that, upon request for valuation by Suzanne Kramer, Real Estate Services Coordinator, City of Clearwater, I have personally inspected, collected, and analyzed various data, and appraised the fee simple interest of the Downtown Core Site/Land Only (Peace Memorial Presbyterian Church Property) located at 107 S. Osceola Avenue, Clearwater, Florida 33756. The property is more fully described in the attached report. I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclu- sions. I have no present or prospective interest in the property that is the sub- ject of this report and no personal interest or bias with respect to the parties involved. I have no bias with respect to the property that is the subject of this re- port or to the parties involved with this assignment. My engagement in this assignment was not contingent upon develop- ing or reporting predetermined results. My compensation for completing this assignment is not contingent up- on the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. My analyses, opinions, and conclusions were developed, and this re- port has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP). The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Profes- sional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. TOBIAS REALTY ADVISORS, LLC 22 I have made a personal inspection of the property that is the subject of this report. No one provided significant real property appraisal assistance to the person signing this certification. As of the date of this report, I have completed the requirements under the continuing educa- tion program of the Appraisal Institute. The appraiser is qualified to appraise this property with respect to the Competency Provision of USPAP. The appraiser had not previously appraised subject property nor provided other professional services with respect to it in the last three years. This certificate is in accordance with the Uniform Standards of Professional Appraisal Prac- tice Standard Rule 2-3 and with the Appraisal Institute's Supplemental Standards of Profes- sional Practice. The reader should review the assumptions and limiting conditions included in this report. C. Richard Tobias, MAI State-Certified General Real Estate Appraiser RZ705 TOBIAS REALTY ADVISORS, LLC 23 ASSUMPTIONS AND LIMITING CONDITIONS 1. The conclusions as to market value contained herein represent the opinion of the under- signed and are not to be construed in any way as a guarantee or warranty, either ex- pressed or implied, that the property described herein will actually sell for the market value contained in this opinion. 2. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 3. The property is appraised free and clear of all encumbrances, unless otherwise noted. 4. No survey of the property was made or caused to be made by the appraiser. It is assumed the legal description closely delineates the property. It was checked with public records for accuracy. Drawings in this report are to assist the reader in visualizing the property and are only an approximation of grounds or building plan. 5. It is assumed that there are no hidden or unapparent conditions of the property's subsoil or structure that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 6. Subsurface rights (minerals, oil, or water) were not considered in this report. 7. All value estimates have been made contingent on zoning regulations and land use plans in effect as of the date of appraisal, and based on information provided by governmental authorities and employees. 8. It is assumed that there is full compliance with all applicable federal, state, and local en- vironmental laws and regulations, unless noncompliance is stated, defined, and consid- ered in the appraisal report. 9. It is assumed that all applicable zoning and land use regulations and restrictions have been complied with, unless a non-conformity has been stated, defined, and considered in the appraisal report. 10. It is assumed that all required licenses, certificates of occupancy, consents, or other leg- islative or administrative authority from any government or private entity or organiza- tion have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. TOBIAS REALTY ADVISORS, LLC 24 11. This appraisal report covers only the premises herein; and no figures provided, analysis thereof, or any unit values derived are to be construed as applicable to any other proper- ty, however similar they may be. 12. Certain data used in compiling this report was furnished by the client, his counsel, em- ployees, and/or agent, or from other sources believed reliable. However, no liability or responsibility may be assumed for complete accuracy. 13. An effort was made to verify each comparable sale noted in the report. There are times when it is impossible to confirm a sale with the parties involved in the transaction; all sales are confirmed through public records. 14. The appraiser, by reason of this report, is not required to give testimony in court with reference to the property herein, nor obligated to appear before any governmental body, board, or agent, unless arrangements have been previously made therefore. 15. Estimates of expenses, particularly as to assessment by the County Property Appraiser and subsequent taxes, are based on historical or typical data. Such estimates are based on assumptions and projections which, as with any prediction, are affected by external forc- es, many unforeseeable. While all estimates are based on my best knowledge and belief, no responsibility can be assumed that such projections will come true. 16. Responsible ownership and competent property management are assumed. 17. Unless otherwise stated in this report, the existence of hazardous materials, which may or may not be present on the property, were not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser is not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibil- ity is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field. TOBIAS REALTY ADVISORS, LLC 25 QUALIFICATIONS C. RICHARD TOBIAS, MAI EDUCATION: B.A., 1971, Boston College, School of Arts and Sciences Have passed or received credit for the following courses sponsored by the Appraisal Institute. 1A-1 Real Estate Appraisal Principles 1A-2 Basic Valuation Procedures 1B-1 Capitalization Theory and Techniques 2-1 Case Studies in Real Estate Valuation 2-2 Valuation Analysis and Report Writing 2-3 Standards of Professional Practice 6 Investment Analysis Attended numerous seminars sponsored by American Institute of Real Estate Appraisers (now Appraisal Institute), Society of Real Estate Appraisers (now Appraisal Institute), Flori- da State University, National Association of Mutual Savings Banks, and other financial insti- tution associations. Most recent appraisal course was Uniform Standards for Federal Land Acquisitions (June 2010), sponsored by the Appraisal Institute. Most recent seminar was Cost Approach (October 2020). Florida State-Certified General Real Estate Appraiser RZ705 Expert witness in appraisal of real estate and businesses -- Circuit Court of Florida, Sixth District Federal Court, Middle District of Florida BUSINESS EXPERIENCE: 2015 to Present: Manager/owner, Tobias Realty Advisors, LLC, a firm specializing in appraisal and consulting in commercial and investment real estate in west central Florida. 1987 to 2015: Independent Contractor associated with Valuation Services, Inc. and To- bias Realty Advisors, LLC, firms specializing in appraisal and consulting in commercial and investment real estate. Assignments have included ap- praisal of a variety of commercial, industrial, and investment properties, as well as vacant land. Areas of specialization include churches, schools, convenience food/gasoline outlets, restaurants, retail centers, industrial, of- fices, medical/dental clinics, apartments, and lodging facilities. Appraisal TOBIAS REALTY ADVISORS, LLC 26 assignments have been prepared for financing, litigation, sale/purchase, and other functions. 1980 to 1987: Vice President, Warren Hunnicutt, Jr., Inc., Real Estate Appraisers and Consultants. Assignments included office buildings, shopping centers, in- dustrial facilities, residential developments, apartment buildings, resort properties, and closely-held businesses. 1979 to 1980: Associate Appraiser with L. T. Bookhout, Inc., Real Estate Appraisal and Consultation. Assignments included industrial facilities, special purpose properties, undeveloped land tracts, as well as historically significant properties being acquired by the National Park Service. 1977 to 1979: Commercial Loan Analyst/Appraiser with Poughkeepsie Savings Bank. Duties included appraisal of residential and commercial properties for mortgage loan purposes; review and recommendation of commercial loans to Board of Directors; field inspection and analysis of investment proper- ties in Southeast and Southwest United States. 1975 to 1977: Associated with Dutchess County Department of Real Property Tax and City of Beacon, New York in the assessment of properties for ad valorem taxation purposes. 1973 to 1975: Owned and operated masonry contracting firm specializing in custom resi- dential fireplaces, accent walls, exterior facades, etc. Independently registered Real Estate Broker -- State of Florida; BK348850 PROFESSIONAL AFFILIATIONS: MAI, Appraisal Institute Realtor, Florida Gulfcoast Commercial Association of Realtors (FGCAR) The Appraisal Institute conducts a program of continuing education for its designated mem- bers. MAI's who meet the minimum standards of this program are awarded periodic educa- tional certification. C. Richard Tobias is currently certified under this program. 2013 President, Florida Gulf Coast Chapter of Appraisal Institute ADDENDA Halsey Beshears, SecretaryRon DeSantis, GovernorSTATE OF FLORIDADEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATIONFLORIDA REAL ESTATE APPRAISAL BDTHE CERTIFIED GENERAL APPRAISER HEREIN IS CERTIFIED UNDER THEPROVISIONS OF CHAPTER 475, FLORIDA STATUTESTOBIAS, CHARLES R JRDo not alter this document in any form.723 20TH AVE NLICENSE NUMBER: RZ705EXPIRATION DATE: NOVEMBER 30, 2022This is your license. It is unlawful for anyone other than the licensee to use this document.ST PETERSBURG FL 33704Always verify licenses online at MyFloridaLicense.com [RE22-1313-178/293301/1] 1 CONTRACT FOR PURCHASE OF REAL PROPERTY BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER PARTIES: PEACE MEMORIAL PRESBYTERIAN CHURCH OF CLEARWATER, FLORIDA, INC., a Florida not-for-profit corporation, whose mailing address is 110 S. Fort Harrison Ave., Clearwater, Florida 33756-5107 (herein "Seller" or “Peace”), and the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA, a public body corporate and politic of the State of Florida (herein "Buyer" or “CRA”), whose post office address is P.O. Box 4748, Clearwater, Florida 33758-4748, joined by the CITY OF CLEARWATER, FLORIDA, a municipal corporation of the State of Florida (herein “City”), whose post office address is P.O. Box 4748, Clearwater, Florida 33758-4748, (collectively "Parties") enter into this CONTRACT FOR PURCHASE OF REAL PROPERTY BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER (“Contract”), and hereby agree that the Seller shall sell, and Buyer shall buy the following real property ("Property") upon the following terms and conditions. 1. PROPERTY DESCRIPTION 107 S. Osceola Avenue, Clearwater, FL 33756 Real Property ID No 16-29-15-20358-002-0110 As more particularly described in Exhibit “A” and depicted in Exhibit “B” (attached hereto and incorporated herein). PERSONALTY: NONE 2. FULL PURCHASE PRICE ..........................................………………….… $1,850,000.00 3. MANNER OF PAYMENT: Wire in immediately available U.S. funds at time of Closing 4. PURCHASE PRICE The Full Purchase Price as established herein has been reached through negotiations with the Seller by the Buyer’s staff, following due consideration, and within the range of values of that certain real estate appraisal dated May 13, 2022, as developed for the CRA by Entreken Associates, Inc., which valued the Property at $ 1,620,000, and that certain real estate appraisal dated May 4, 2022, as developed for the CRA by Tobias Realty Advisors, LLC., which valued the Property at $ 4,855,000. 5. TIME FOR ACCEPTANCE; APPROVALS Following written approval of the terms of this Contract by Seller (remaining subject to formal approval by its governing body), the price, terms, and conditions as contained herein shall remain unchanged and be held unconditionally open for a period of 60 days following delivery in duplicate original of such written approval to the Executive Director of the Community Redevelopment Agency of the City of Clearwater for acceptance and approval, [RE22-1313-178/293301/1] 2 counteroffer, or rejection by action of the Clearwater City Council ("Council") serving in its capacity as the governing board of the CRA. If this Contract is accepted and approved by the CRA, it will be executed by duly authorized CRA officials and delivered to the Clearwater City Council for consideration. If Clearwater City Council approves the Contract, duly authorized City Officials will execute and return the Contract to the CRA. The CRA shall deliver to Seller within 10 days thereafter. The Seller shall then present the Contract for formal approval of its governing body, and upon such approval, execute and return to Buyer. The “Effective Date” shall be the date all parties hereto have fully executed. If a counteroffer is approved by the CRA, it shall be delivered to Seller in writing within 10 days of such action by the CRA, and Seller shall have 10 days thereafter to deliver to Buyer written notice of acceptance or rejection of such counteroffer. If written notice of acceptance is not timely delivered, or if the counteroffer is rejected by Seller, the offer for sale or purchase and this Contract, as the case may be, shall thereafter be null and void in all respects upon rejection, or at the end of the 10-day period, as applicable. If this Contract is rejected by the CRA upon initial presentation to the CRA, the offer for sale or purchase, and this Contract, as the case may be, shall be null and void in all respects upon rejection by the CRA and Seller shall be so informed in writing within 5 days of such action. 6. TITLE Seller warrants legal capacity to and shall convey fee simple title to the Property by Special Warranty Deed, subject only to matters contained in Paragraph 7, which are acceptable to Buyer. Otherwise, title shall be free of liens, easements and encumbrances of record or known to Seller, but subject to property taxes for the year of Closing; covenants, restrictions, and public utility easements of record; and no others provided there exists at Closing no violation of the foregoing. 7. TITLE EVIDENCE Seller shall, at Seller’s expense, no later than 15 days prior to Closing Date, deliver a title insurance commitment issued by a Florida licensed title insurer (“Title Company”) setting forth the condition of title to the Property. Seller shall convey a marketable title subject only to liens, encumbrances, exceptions, or qualifications set forth in this Contract. Marketable title shall be determined according to applicable Title Standards adopted by The Florida Bar and in accordance with law. Buyer shall have 5 days from receiving evidence of title to examine it. If title is found defective, in Buyer’s sole discretion, Buyer shall, within 3 days thereafter, notify Seller in writing specifying the defect(s). If the defect(s) render title unmarketable, Seller will have 120 days from receipt of notice within which to remove the defect(s), failing which Buyer shall have the option of either accepting the title as it then is without reduction in the Purchase Price or terminating this Contract whereupon both parties shall be released from further liability (except those terms and conditions that survive termination). Seller will, if title is found unmarketable, make commercially reasonable effort to correct defect(s) in title within the time provided therefor, provided, however, Seller shall not be obligated to file suit or incur any third-party costs or expenses. 8. SURVEY [RE22-1313-178/293301/1] 3 Buyer, at Buyer's expense, within time allowed for the Inspection Period, may have the Property surveyed and certified to the Buyer by a registered Florida land surveyor. If survey shows any encroachment on the Property, or that improvements located on the Property encroach on setback lines, easements, lands of others, or violate any restrictions, contract covenants or applicable governmental regulation, the same shall constitute a title defect. The survey shall be performed to minimum technical standards of the Florida Administrative Code and may include a description of the property under the Florida Coordinate System as defined in Chapter 177, Florida Statutes. Seller shall have no obligation to cure any title defects reflected on the survey. Buyer’s failure to terminate this Contract prior to expiration of the Inspection Period shall be deemed a determination that Buyer is satisfied with the survey of the Property. 9. CLOSING PLACE AND DATE Seller shall designate closing agent (“Closing Agent”) and this transaction shall be closed (“Closing”) in the offices of the designated Closing Agent in Pinellas County, Florida, on or before 120 days of the Effective Date (“Closing Date”) unless extended by other provisions of this Contract including but not limited to time allotted for the removal of title defects as provided for in Paragraph 7 above. If either party is unable to comply with any provision of this Contract within the time allowed, and be prepared to close as set forth above, after making all reasonable and diligent efforts to comply, then upon giving written notice to the other party, time of Closing may be extended up to 60 days without effect upon any other term, covenant or condition contained in this Contract. Each Party shall have independent opportunity for said extension. 10. CLOSING DOCUMENTS Seller shall furnish closing statements for the respective parties, deed, bill of sale (if applicable), mechanic's lien affidavit, assignments of leases, tenant and mortgage estoppel letters, and corrective instruments, as applicable. If Seller is a corporation, Seller shall deliver a resolution of its Board of Directors authorizing the sale and delivery of the deed and certification by the corporate Secretary certifying the resolution and setting forth facts showing the conveyance conforms with the requirements of local law, or such other documentation that the Title Agent shall reasonably require. 11. CLOSING EXPENSES Documentary stamps on the deed, unless exempt under Chapter 201.24, Florida Statutes, shall be paid by the Seller. Seller shall also pay the costs of recording any corrective instruments. Recordation of the deed shall be paid by the Buyer. Buyer shall be responsible for the cost of the title search and title premium for the owner’s title insurance policy in the amount of the Purchase Price. 12. PRORATIONS; CREDITS [RE22-1313-178/293301/1] 4 Taxes, assessments, rent (if any) and other revenue of the Property shall be prorated through the day before Closing. Closing Agent shall collect all ad valorem taxes uncollected but due through day prior to Closing and deliver same to the Pinellas County Tax Collector with notification to thereafter exempt the Property from taxation as provided in Chapter 196.012(6), Florida Statutes. If the amount of taxes and assessments for the current year cannot be ascertained, rates for the previous year shall be used with due allowance being made for improvements and exemptions. Assessments for any improvements that are substantially complete at time of Closing shall be paid in full by Seller. 13. OCCUPANCY Seller warrants that there are no parties in occupancy other than the Seller, or as otherwise disclosed herein. If Property is intended to be rented or occupied beyond Closing, the fact and terms thereof shall be stated herein, and the tenant(s) or occupants disclosed pursuant to Paragraph 14. Seller agrees to deliver occupancy of the Property at time of Closing unless otherwise stated herein. If occupancy is to be delivered before Closing, Buyer assumes all risk of loss to Property from date of occupancy, shall be responsible and liable for maintenance from that date, and shall be deemed to have accepted Property in its existing conditions as of the time of taking occupancy unless otherwise stated herein or in separate writing. 14. LEASES AND OCCUPATION Seller warrants there are no tenants occupying the Property and that no leases exist, recorded or unrecorded, authorizing such occupancy and any authorized tenancy or lease for use of the Property created by Seller prior to Closing or prior to the expiration hereof, shall constitute a material breach of this Contract. The Parties acknowledge and agree that Seller will continue to occupy the Property post-closing as provided for in that certain Covenants, Restrictions, and Grant of Easement Agreement as described herein in section 36. 15. PROPERTY CONDITION Seller shall deliver the Property to Buyer at time of Closing in its present "as is" condition, ordinary wear and tear excepted, and shall maintain the landscaping and grounds in a comparable condition prior to Closing. Seller makes no warranties other than is disclosed herein and marketability of title as set forth in the deed delivered at Closing. Buyer’s covenant to purchase the Property “as is” is more specifically represented in the following paragraph. a. As Is With Right of Inspection: Buyer may, at Buyer expense within 60 days following the Effective Date hereof (“Inspection Period”), conduct inspections, tests, environmental and any other investigations of the Property Buyer deems necessary to determine suitability for Buyer’s intended use. Upon Seller’s execution hereof, Seller shall grant reasonable access to the Property to Buyer, its agents, contractors and assigns for the purposes of conducting the inspections provided, however, that [RE22-1313-178/293301/1] 5 all such persons enter the Property and conduct the inspections and investigations at their own risk. Seller will, upon reasonable notice, provide utilities services as may be required for Buyer’s inspections and investigations. Buyer shall not engage in any activity that could result in a mechanics lien being filed against the Property without Seller’s prior written consent. Buyer may terminate this Contract by written notice to Seller prior to expiration of the Inspection Period if the inspections and/or investigations reveal conditions which are reasonably unsatisfactory to Buyer. In the alternative, at the Buyer’s sole discretion, if Seller offers to repair or otherwise remedy such conditions to Buyer satisfaction, Buyer may accept such offer; or Buyer, at its option, may elect to accept a credit at Closing of the total estimated repair costs as determined by a licensed general contractor of Buyer’s selection and expense, to the extent agreed to in writing by Seller. If Buyer terminates this Contract, and this transaction does not close, Buyer agrees, at Buyer expense, to repair all damages to the Property resulting from the inspections and investigations and return the Property to the condition that existed prior to its investigation. 16. WALK-THROUGH INSPECTION At a time mutually agreeable between the parties, but not later than the day prior to Closing, Buyer may conduct a final “walk-through” inspection of the Property to determine compliance with any Seller obligations under Paragraph 15. No new issues may be raised as a result of the walk-through. 17. SELLER HELD HARMLESS Buyer is self-insured, and subject to the limits and restrictions of the Florida Sovereign immunity statute, F.S. 768.28, agrees to indemnify and hold harmless the Seller from claims of injury to persons or property during the inspections and investigations described in Paragraph 15(a) resulting from Buyer’s own negligence only, or that of its employees or agents only, subject to the limits and restrictions of the sovereign immunity statute. 18. RISK OF LOSS If the Property is damaged by fire or other casualty before Closing and cost of restoration does not exceed 3% of the assessed valuation of the Property so damaged, cost of restoration shall be an obligation of the Seller and Closing shall proceed pursuant to the terms of this Contract with restoration costs escrowed at Closing. If the cost of restoration exceeds 3% of the assessed valuation of the improvements so damaged, Buyer shall have the option of either taking the Property “as is”, together with any insurance proceeds payable by virtue of such loss or damage, or of canceling this Contract. 19. PROCEEDS OF SALE; CLOSING PROCEDURE The deed shall be recorded upon clearance of funds. Proceeds of sale shall be held in escrow by Seller’s attorney, the Closing Agent, or by such other mutually acceptable escrow agent for a period of no longer than 5 days from and after Closing, during which [RE22-1313-178/293301/1] 6 time evidence of title shall be continued at Buyer's expense to show title in Buyer, without any encumbrances or change which would render Seller's title unmarketable from the date of the last title evidence. If Seller's title is rendered unmarketable through no fault of the Buyer, Buyer shall, within the 5-day period, notify the Seller in writing of the defect and Seller shall have 30 days from the date of receipt of such notification to cure the defect. If Seller fails to timely cure the defect, all funds paid by or on behalf of the Buyer shall, upon written demand made by Buyer and within 5 days after demand, be returned to Buyer and simultaneously with such repayment, Buyer shall vacate the Property and reconvey it to Seller by special warranty deed. If Buyer fails to make timely demand for refund, Buyer shall take title "as is", waiving all rights against Seller as to any intervening defect except as may be available to Buyer by virtue of warranties contained in the deed. The escrow and closing procedure required by this provision may be waived if title agent insures adverse matters pursuant to Section 627.7841, F.S. (2014), as amended. 20. DEFAULT If this transaction is not closed due to any default or failure on the part of the Seller, other than to make the title marketable after diligent effort, Buyer may seek specific performance or unilaterally cancel this agreement upon giving written notice to Seller. If this transaction is not closed due to any default or failure on the part of the Buyer, Seller may seek specific performance. If a Broker is owed a brokerage fee regarding this transaction, the defaulting party shall be liable for such fee. 21. Intentionally Deleted. 22. RADON GAS NOTIFICATION In accordance with provisions of Section 404.056(8), Florida Statutes (2014), as amended, Buyer is hereby informed as follows: RADON GAS: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county public health unit. 23. CONTRACT NOT RECORDABLE; PERSONS BOUND Neither this Contract nor any notice of it shall be recorded in any public records. This Contract shall bind and inure to the benefit of the parties and their successors in interest. Whenever the context permits, singular shall include plural and one gender shall include all. 24. NOTICE [RE22-1313-178/293301/1] 7 All notices provided for herein shall be deemed to have been duly given if and when deposited in the United States Mail, properly stamped, and addressed to the respective party to be notified, including the parties to this contact, the parties’ attorneys, escrow agent, inspectors, contractors and all others who will in any way act at the behest of the parties to satisfy all terms and conditions of this Contract. 25. ASSIGNABILITY; PERSONS BOUND This Contract is not assignable. The terms "Buyer", "Seller", and "Broker" (if any) may be singular or plural. This Contract is binding upon Buyer, Seller, and their heirs, personal representatives, successors, and assigns (if assignment is permitted). 26. ATTORNEY FEES; COSTS In any litigation arising out of this Contract, the prevailing party shall be entitled to recover reasonable attorney's fees and costs. 27. TYPEWRITTEN OR HANDWRITTEN PROVISIONS Typewritten or handwritten provisions shall control all printed provisions of contract in conflict with them. 28. BROKER REPRESENTATION If either Party chooses to be represented by a Licensed Real Estate Broker upon Seller’s execution hereof, then that Party solely shall be responsible for any such Broker fee or expense due to said Broker. 29. COMPLIANCE WITH SECTION 286.23, FLORIDA STATUTES Seller shall execute and deliver to the CRA the “Disclosure of Beneficial Interests” required pursuant to Section 286.23, Florida Statutes. 30. EFFECT OF PARTIAL INVALIDITY The invalidity of any provision of this Contract will not and shall not be deemed to affect the validity of any other provision. In the event that any provision of this Contract is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision. 31. GOVERNING LAW It is agreed by and between the parties hereto that this Contract shall be governed by, construed, and enforced in accordance with the laws of the State of Florida. [RE22-1313-178/293301/1] 8 32. COUNTERPARTS; FACSIMILE COPY This Contract may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. A facsimile copy of this Contract, including any addendum, attachments, and any written modifications hereof, and any initials or signature thereon shall be deemed an original. 33. ENTIRE AGREEMENT Upon execution by Seller and Buyer, this Contract shall constitute the entire agreement between the parties, shall supersede any and all prior and contemporaneous written and oral promises, representations, or conditions in respect thereto. All prior negotiations, agreements, memoranda, and writings shall be merged herein. Any changes to be made in this agreement shall only be valid when expressed in writing, acknowledged by the parties, and incorporated herein or attached hereto. 34. PARKING GARAGE SPACES Buyer represents and warrants to Seller that the Buyer will redevelop the Property as a public parking garage following Closing. The Buyer agrees that certain parking spaces will be reserved for the Seller’s use as reflected in Exhibit “C”, a general list of certain covenants as between the Parties, which will be subsequently formalized in a Covenants, Restrictions, and Grant of Easement Agreement to be recorded in the Official Records of Pinellas County, Florida (“Official Records”) at Closing, as more particularly described below. The physical location of the parking spaces within the garage will be determined at the Buyer’s reasonable discretion. 35. RIGHT OF FIRST REFUSAL Following Closing, if the Buyer receives a bona-fide third-party offer to purchase the Property, the Buyer, within thirty (30) days, must give written notice to the Seller detailing the terms and conditions of the offer, prior to Buyer being able to accept such offer. Seller shall have fifteen (15) days from the date of receipt of said offer to provide the Buyer with written notice of acceptance of the offer, upon the same terms and conditions as set forth therein. If the Seller accepts said offer, Closing shall take place within sixty (60) days from the date of acceptance. If the Seller fails to accept said offer, in writing within the fifteen (15) days provided herein, the Buyer may proceed to sell to said third party in accordance with the terms of the offer. It is the express intent of the parties that the terms and conditions contained in this paragraph shall survive Closing and delivery of the deed and not be incorporated into the deed. At Closing, a memorandum of this right of first refusal shall be recorded in the Official Records. 36. COVENANTS, RESTRCITIONS, AND GRANT OF EASEMENTS AGREEMENT The Parties have entered into this Agreement for the sole purpose of the CRA constructing [RE22-1313-178/293301/1] 9 a parking garage on the subject Property. Commercial retail space and operations may be included within the garage structure at the ground level. As a condition to the sale and Closing of the Property, Seller and Buyer are mutually desirous of, and shall enter into a mutually acceptable Covenants, Restrictions, and Grant of Easements Agreement (the “CREA”) setting forth the parameters and restrictions under which the subject conveyance will occur, and certain parameters on how the subject Property will be developed, utilized, and maintained (the “Restrictions”). The CREA and Restrictions shall run with the land and be binding on the successors and assigns of the parties hereto unless seller’s adjacent parcel (“Seller’s Adjacent Parcel”, as more particularly described in Exhibit “D” hereto), is sold and not leased back to Seller for a religious use. If Seller’s Adjacent Parcel is sold and not leased back to the Seller for a religious use, or if leased back to Seller for a religious use and said lease terminates, the CREA and Restrictions shall automatically terminate in their entirety upon said conveyance, except easements therein that are expressly intended to run with the land in perpetuity. Seller shall, at the request of the Buyer, execute a Release of Covenants, Restrictions, and Grant of Easements Agreement (“Release”) reflecting those portions of the CREA to be released, and said Release shall be recorded in the Official Records simultaneous to closing of the sale of Seller’s Adjacent Parcel or at such time as Seller’s Adjacent Parcel is no longer used for a religious purpose by Seller, whichever is later. Generally, said Restrictions are provided for in Exhibit “C”, (attached hereto and incorporated herein). More specifically, the Restrictions shall be memorialized in the CREA, which shall be executed and entered into as a prerequisite to Closing and recorded in the Official Records. The obligations of Buyer and Seller under this Contract are conditioned upon Buyer and Seller agreeing upon the form and content of the CREA. The parties shall use good faith reasonable efforts to negotiate the form of the CREA within forty-five (45) days following the expiration of the Inspection Period. In the event the parties are unable to agree on the form of the CREA on or before the Closing Date, either Buyer or Seller shall have the right to terminate this Agreement whereupon both parties shall be released from further liability hereunder, except those terms and conditions herein that expressly survive termination. 37. VACATION OF DIVISION STREET The City agrees to cooperate in good faith with Peace as it relates to Peace’s request to vacate the alleyway located between the Property and Seller’s Adjacent Parcel located at 110 S. Ft. Harrison Avenue, Clearwater (“Division Street”), which vacation shall be a condition of Closing in favor of Seller. The City's agreement to cooperate is not made in its regulatory capacity, and the City makes no representations as to the outcome of the regulatory process required for the requested vacation. The vacation shall be subject to customary easements for City and other utilities presently located in Division Street. 38. COOPERATION OF THE CITY OF CLEARWATER. The City of Clearwater (“City”), a municipal corporation of the State of Florida, has joined in this Agreement for the sole purpose of reflecting its agreement to cooperate and support the CRA in meeting the obligations and enjoying the benefits, as the case may be, created by Sections 36, 37, and Exhibit “C”, and any other provision herein which the CRA may [RE22-1313-178/293301/1] 10 delegate to the City. EXECUTED this _____ day of ________________________, 2022 by Seller. Attest: Peace Memorial Presbyterian Church of Clearwater, Florida, Inc. ______________________________ By: ___________________________ ______________________________ Title: __________________________ Print Name ______________________________ ______________________________ Print Name [RE22-1313-178/293301/1] 11 APPROVED BY BUYER & EFFECTIVE this _____ day of _________________________, 2022. Countersigned: Community Redevelopment Agency of the City of Clearwater, Florida ___________________________ By: __________________________ Frank Hibbard Jon Jennings Chairperson Executive Director Approved as to form: Attest: ___________________________ ________________________________ Michael Fuino Rosemarie Call Senior Assistant City Attorney City Clerk [RE22-1313-178/293301/1] 12 JOINED BY AND EFFECTIVE this _____ day of _________________________, 2022. Countersigned: City of Clearwater, Florida ___________________________ By: __________________________ Frank Hibbard Jon Jennings Mayor City Manager Approved as to form: Attest: ___________________________ ________________________________ Laura Mahony Rosemarie Call Senior Assistant City Attorney City Clerk [RE22-1313-178/293301/1] 13 EXHIBIT “C” 1. Permanent Parking without charge. CRA covenants to provide parking spaces within the to-be-built CRA Parking Garage, in locations to be determined by the CRA in its reasonable discretion, as follows: a. Sunday morning worship: 52 Sundays annually, 6 a.m. – 2 p.m. (No less than 125 spaces); b. Staff parking: weekdays, 52 weeks annually, Monday – Friday, 6 a.m. – 10 p.m. (No less than 20 spaces); c. Holy Days traditionally observed in the Liturgical Year: i. Annual (varying) dates, depending on the date of Easter Sunday: 1. Ash Wednesday: February or March TBD (No less than 75 spaces 11:30 a.m. – 9 p.m.); 2. Maundy Thursday: last Thursday before Easter (No less than 75 spaces 11:30 a.m. – 9 p.m.); 3. Good Friday (last Friday before Easter) (No less than 75 spaces 11:30 a.m. – 9 p.m.); d. Christmas Eve, December 24 (No less than 125 spaces, Noon – 12:00 a.m.); e. Concert Dates, Second Sundays October – March (No less than 125 spaces from 2 p.m. – 5 p.m.) 2. Temporary Parking. CRA will ensure availability of temporary parking spaces as follows: a. Peace will be permitted to utilize the Property (existing parking) for parking purposes until such time as the CRA begins actual and continuous construction and requires sole use and control of the Property. Peace shall indemnify the CRA and the City for liability resulting from Peace’s use. b. Once Peace can no longer use the Property, the CRA will ensure the availability of temporary parking within 112 S. Osceola Ave. (the “City Hall Lot”), 301 Pierce St. (the “CMA Lot”), 28 N. Garden Ave. (the “Garden Ave. Lot”), and/or 640 Pierce St. (the “MSB Lot”) as follows: i. Sunday morning worship: 52 Sundays annually, 6 a.m. – 2 p.m. (No less than 125 spaces); ii. Staff parking: weekdays, 52 weeks annually, Monday – Friday, 6 a.m. – 10 p.m. (No less than 20 spaces); iii. Holy Days traditionally observed in the Liturgical Year: 1. Annual (varying) dates, depending on Easter Sunday: a. Ash Wednesday: February or March TBD (No less than 75 spaces 11:30 a.m. – 9 p.m.); b. Maundy Thursday: last Thursday before Easter (No less than 75 spaces 11:30 a.m. – 9 p.m.); [RE22-1313-178/293301/1] 14 c. Good Friday (last Friday before Easter) (No less than 75 spaces 11:30 a.m. – 9 p.m.); iv. Christmas Eve, December 24 (No less than 125 spaces, Noon – 12:00 a.m.); v. Concert Dates, Second Sundays October – March (No less than 125 spaces from 2 p.m. – 5 p.m.) c. Should the construction of the garage exceed a period of two (2) years from the date Seller is required to vacate its temporary parking rights on the Property, and Seller is not accommodated within the lots enumerated above in 2(b), the Buyer shall provide an alternative parking location meeting the requirements set forth above, and if said location is a distance further than .3 miles (equidistant from Peace to the Garden Ave. Lot or MSB Lot), the Buyer will provide for a valet service to shuttle parishioners to and from the Seller’s Adjacent Parcel during the enumerated times or such reduced times as may be agreed upon between the Parties. 3. CRA Covenants. CRA covenants as follows: a. The ground floor commercial spaces within the garage shall be leased or otherwise occupied by commercial for-profit entities, unless otherwise consented to by Seller, which consent shall not be unreasonably withheld, and the following uses shall be prohibited: i. Any adult bookstore or other establishment selling or exhibiting pornographic materials; ii. Any establishment selling or exhibiting merchandise or paraphernalia related to the use or production of illicit drugs; iii. Liquor stores or bars (alcohol may be served in bona fide restaurants); iv. Tattoo parlors; v. CBD or marijuana dispensaries; vi. Hookah lounges; vii. Gaming or betting facilities. b. These restrictions apply only as may be permitted by law. c. The CRA shall not convey or transfer any interest in the Property until such time that the Garage is fully constructed and operational and available for use by Peace pursuant to the CREA, except for lease or transfer for any commercial uses within the garage as contemplated. d. Construction Parameters. i. Subject to the requirements of the Agreement and this Exhibit, the CRA shall retain ultimate decision making, follow applicable regulatory processes, and defer to CRA or City Council decision making, as applicable, however, Peace shall have the opportunity to present its preferences to the CRA for consideration. Notwithstanding the foregoing, the garage design shall be in keeping with the Mediterranean style and original color palette of the historic 1921 sanctuary Seller’s Adjacent Parcel. [RE22-1313-178/293301/1] 15 ii. Seller’s existing chiller on the Property (”Chiller”) may be moved at CRA expense to a temporary location during the construction of the garage. If Seller is not able to connect to the County chilling system, at Seller expense, then it is anticipated that the CRA would place the Chiller on the roof of the garage or accommodate it at another location secured by the CRA – in close proximity, at CRA expense, without interruption of Peace’s cooling capacity or service. 4. Easements. The Parties shall grant mutual easements as follows: a. Easement in favor of CRA to construct, own and maintain “Covered Walkway” in a location mutually agreeable to the Parties. This easement shall survive until such time as the walkway is removed because Seller’s Adjacent Parcel is no longer used for a religious use by Seller. b. Ingress, Egress (pedestrian and vehicular) and Parking Easement in favor of Peace on the Property. c. A Pedestrian ingress, egress easement through the alley in favor of the Public. A vehicular ingress, egress easement through the alley in favor of the City and CRA for purposes of repair and maintenance to the garage. The Parties acknowledge that the entrance to/exit from the garage will not be located on the East/alley side of the Property. d. Those certain reservation of easements and grant of easements, and any other conditions necessitated by the vacation of Division Street as provided for in Section 37, above, and the related City Ordinance. Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#22-0793 Agenda Date: 8/15/2022 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.5 SUBJECT/RECOMMENDATION: Approve the Business Renovation grant program for property owners and tenants to improve the visual appearance of commercial properties through exterior and interior improvements and authorize the appropriate officials to execute same. SUMMARY: The Community Redevelopment Agency (CRA) is recommending approval of the Business Renovation Grant program to reduce blight and encourage private investment into downtown. The purpose of the Community Redevelopment Agency (CRA) Business Renovation grant program is to improve the visual appearance of commercial properties through small scale exterior and interior building and site improvements. The Business Renovation Program’s objectives are to: ·Improve the condition and appearance of commercial buildings in Downtown Clearwater. ·Increase the number of commercial properties that can attract and accommodate tenants in the CRA District. ·Increase commercial occupancy rates and property values. Grants may be awarded to property owners or tenants for exterior and interior improvements to commercial property within the CRA district. This program is intended for renovations and repairs that do not exceed a total project cost of $200,000. The CRA will fund projects based on the cost of eligible improvements based on a tiered system as shown in the attached program summary. Only one grant per property address/tenant is allowed every five years. Eligible improvements include painting, signage, lighting, doors, windows, roof, site improvements, and other minor exterior repairs. Eligible interior improvements include windows, doors, standard lighting and electrical, basic HVAC, concrete floor, ADA restrooms, fountain, and fire code improvements. The amount of grant funds for the program will be established by the CRA Trustees on an annual basis. All grant awards are subject to budget availability. Applications will be accepted on a rolling basis. In this program, the CRA Director has the final approval authority to approve grant applications, execute grant agreements and authorize reimbursement up to $99,997.30 per project. Staff recommends allocating $300,000 for the first year of the program which would cover three properties at the full grant amount. With the fiscal year ending September 30, 2022, the $300,000 would be for fiscal year 2022-2023. The proposed grant program balances the legal requirements for the use of CRA funds, meets the goals of the downtown redevelopment plan and provides a partnership opportunity for Page 1 City of Clearwater Printed on 8/10/2022 File Number: ID#22-0793 property owners and tenants who wish to invest in downtown. APPROPRIATION CODE AND AMOUNT: Funds are available in CRA project code 3887552-R2003 ED-City. Page 2 City of Clearwater Printed on 8/10/2022 1 A. Program Overview The purpose of the Community Redevelopment Agency (CRA) Business Renovation grant program is to assist property owners and tenants with funding to renovate occupied spaces with long-term or short-term uses that generate significant downtown pedestrian foot traffic. Grants may be awarded to property owners or tenants for exterior and interior improvements to commercial property within the CRA district. This program is intended for renovations and repairs that do not exceed a total project cost of $200,000. Eligible improvements include exterior improvements for painting, signage, lighting, doors, windows, site improvements, and other minor exterior repairs. Eligible interior improvements include windows, doors, standard lighting and electrical, basic HVAC, concrete floor, ADA restrooms, fountain, and fire code improvements. The CRA will fund projects based on the cost of eligible improvements based on a tiered system based on the below table: Cost of Eligible Improvements Maximum Funding $0 to $24,999 100% of Cost of Eligible Improvements $25,000 – $49,999 $24,999 + 60% of the amount over $24,999 $50,000 - $99,999 $39,998 + 50% of the amount over $49,999 $100,000 - $149,999 $64,997.90 + 40% of the amount over $99,999 $150,000 – $200,000 $84,997.50 + 30% of the amount over $149,999 The amount of grant funds for the program will be established by the CRA Trustees on an annual basis. All grant awards are subject to budget availability. Applications will be accepted on a rolling basis. The application form is available at www.downtownclearwater.com. The Business Renovation grant program directly promotes goals and objectives of the 2018 Clearwater Downtown Redevelopment Plan, specifically: People Goals (page 46) – Downtown shall be a place that attracts residents, visitors, businesses, and their employees and enable the development of community. The City shall encourage a vibrant and active public realm, recreation and entertainment opportunities and support the community and neighborhoods. Objective 1E: Maintain Cleveland Street as Downtown’s Main Street which is valued for its historic character and pedestrian scale. Urban Design Goal (page 48) – Downtown will be a dynamic built environment of dense and livable patterns and active and attractive streets through quality urban design and architecture. City of Clearwater Community Redevelopment Agency Business Renovation Program 2 Objective 4D: Encourage renovation, restoration, and reuse of existing historic structures to maintain the character of Downtown’s neighborhoods. The Business Renovation grant program’s objectives are as follows: • Improve the quality of commercial spaces to increase the number of downtown destination attractors • Incentivize the attraction of new businesses that generate pedestrian foot traffic to occupy vacant spaces by reducing the costs of renovation B. Program Eligibility and Activities The Community Redevelopment Agency staff will administer the Business Renovation grant program. Funding for this grant program is based on budget availability and will be considered on a first-come, first-served basis. Application submission does not guarantee approval. Applications will be reviewed for completeness and compliance with program criteria to determine eligibility for grant funding. Applications that do not comply with the program criteria and conditions will not be eligible for funding. No grants will be awarded for work completed prior to an executed grant agreement. The funding decision of CRA staff is final. The same property address or building unit can only be awarded one CRA grant within a 5-year period. Individual storefronts contained on one parcel will be considered eligible for funding if they have unique mailing addresses and entrances. Grants are limited to one grant per business. All applications must meet the following criteria: 1. The subject property must be a commercial or mixed-use property located within the CRA. The applicant must be the property owner or a business tenant in the subject property. Business tenants or property owners must possess a current city of Clearwater Business Tax Receipt. 2. The applicant must submit a scope of work with a minimum of two quotes from qualified vendors for completing the work. The total project cost is determined by the total costs of eligible grant expenses. Grant funds can only be used towards eligible expenses. Matching funds must be used towards eligible expenses. The maximum grant amount per application is $99,997.30, which requires a total project cost of a minimum of $200,000. Applicants may spend more than $200,000, however, the maximum grant will remain $99,997.30. 3. Grants funds must be for the following kinds of businesses as defined in the Downtown Zoning code: • 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 4. Prior to execution of a grant agreement, the subject property must be free from any liens (except mortgage liens), judgments, or encumbrances (except easements) of any kind, and all city obligations must be current. 3 Eligible Grant Expenditures Grant funds must be used for improvements to the building, that remain with the building. The CRA’s general rule for improvements that qualify towards a property owner's match is that the improvement should remain with the property. Eligible interior and exterior building improvements include: • ADA requirements • Window/Doors • Interior Water Fountains • Florida Fire Protection Code Requirements • Mechanicals and HVAC systems • Plumbing and electrical, including utility connections and upgrades • Structure stabilization (repair and replacement of foundations, footers, load bearing walls, roofing systems) • Room and space reconfiguration including wall relocations • Energy efficiency improvements • Windows and Doors (Interior or Exterior) • Outdoor hardscape improvements and lighting • Signage- New Signage Only that meet city department requirements • Painting (including murals) • General exterior surface repairs, new roof, or roof repairs • Siding Materials • Minor site improvements, e.g., driveway repair, re-striping parking lot C. Grant Process: Property owners or tenants first complete a grant application. CRA staff reviews the application for funding eligibility. Once an application is determined complete and in compliance with the grant program, CRA staff will execute a grant agreement that outlines the approved funding amount, total project costs, project timeline and scope of work. The application form is available at www.downtownclearwater.com. Application Submission 1. Applications can be submitted via email, in person, or postal services. The applicant must meet with the CRA staff. Staff will provide the applicant with general guidance on proposed project and if the project qualifies for grant funds for submission. Incomplete applications will not be accepted. 2. Each application will be reviewed according to the following criteria: • Consistency with the goals of the Downtown Redevelopment Plan • Feasibility of the proposed scope of services and timeline • Ability to meet the program objectives, legal and financial requirements of the grant program 3. If the application is approved by the CRA Director, the applicant shall sign and complete a funding agreement. After the funding agreement has been executed, the applicant may begin work on theproject. Project Timeline For scopes of work which require a permit, permits must be obtained prior to the execution of a grant 4 agreement. For scopes of work which require a permit, reimbursement funds are available only for work started after building permit issuance. Any work requiring a permit must be performed by a licensed and insured contractor and comply with the Downtown Design Guidelines of the City of Clearwater Code of Ordinances. Renovations must be completed within one year from execution of the grant agreement. The CRA Director has the authority to extend time limits one year for project completion based on extenuating circumstances. Grantees must request an extension in writing and if approved, an amendment to the grant agreement will be executed. Payment Process Grant funds will be disbursed by the CRA to the applicant on a reimbursement basis for eligible project expenses. CRA staff must review and approve all reimbursement requests. The CRA Director can approve grant reimbursements up to $99,997.30. Applicants must submit paid invoices as proof of payment. Projects requiring a building permit will need to submit proof of a Certificate of Occupancy or Completion prior to requesting reimbursement. The CRA Director has the authority to modify the payment process based on extenuating circumstances. D. Next Steps If you are interested in learning more about the Business Renovation grant program please visit www.downtownclearwater.com or contact Howard Smith at howard.smith@myclearwater.com. Business Renovation GRANT APPLICATION FORM Program Information The purpose of the Business Renovation Grant program is to assist property owners and tenants with exterior and interior renovations and repairs of commercial property within the Community Redevelopment Agency district. This program is intended for mid-scale renovations and repairs and the maximum CRA grant is $99,997.30. Grants cannot be awarded retroactively for work that has already been completed. Please review the Business Renovation Grant program description for complete information on the review process, eligible improvements, grant amounts and other requirements. Applicant Information Subject Property Address Applicant Name Phone Number Email Are you a Property Owner or Tenant If property owner, please provide your current tenant’s use of the property: Note: The tenant must fall into one of these categories. •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 If tenant: What is your current business? Note: Your business must fall into one of these categories. •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 How long is your lease? Proposed Improvements 1.Provide a brief description of the proposed improvements to the subject property. 2.Please indicate which eligible improvements will be included in your project. Every project must include interior improvements:ADA requirements Window/Doors Interior Water Fountains Florida Fire Protection Code Requirements Mechanicals and HVAC systems Plumbing and electrical, including utility connections and upgrades Structure stabilization (repair and replacement of foundations, footers, load bearing walls, roofing systems) Room and space reconfiguration including wall relocations Energy efficiency improvements Windows and Doors (Interior or Exterior) Outdoor hardscape improvements and lighting Signage- New Signage Only that meet city department requirements Painting (including murals) General exterior surface repairs, new roof, or roof repairs Siding Materials Minor site improvements, e.g., driveway repair, re-striping parking lot 3.What is the total cost of eligible improvements? Note: These costs must be verified by two quotes from qualified vendors 4.When will this renovation project start? End? Please include with this application 1.Two quotes from vendors for the eligible improvements 2. Project budget including costs for eligible improvements3. Photos of the exterior of the property in its current condition I understand that if this grant request is approved, I may be required to provide the following additional information as part of a grant agreement: Clearwater Business Tax Receipt Tenant LeaseBuilding Permit (if applicable) Applicant Signature Date Property Owner/ Representative Signature Date