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09/12/2022 Community Redevelopment Agency Meeting Minutes September 12, 2022 City of Clearwater Main Library- Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 m ap ® e Meeting Minutes Monday, September 12, 2022 8:00 AM Main Library - Council Chambers Community Redevelopment Agency Page 1 City of Clearwater Community Redevelopment Agency Meeting Minutes September 12, 2022 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— Chair Hibbard The meeting was called to order at 8:00 a.m. 2. Approval of Minutes 2.1 Approve the minutes of the August 15, 2022 CRA Meeting as submitted in written summation by the City Clerk. Trustee Allbritton moved to approve the minutes of the August 15, 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 Tim Humes said he has operated a Papa Johns in downtown for 25 years. He received a CRA commercial beautification grant for$12,000 and has been working all year to invest the required $25,000. No payment on the awarded grant has been received. He said he approached staff regarding the ability to switch his grant to the recently approved CRA business renovation grant, which would allow additional work on the property. Staff advised him he could not apply for another grant for another five years. CRA Assistant Director Matt Jackson said the commercial business grant was not available when Mr. Humes applied for the commercial beautification Page 2 City of Clearwater Community Redevelopment Agency Meeting Minutes September 12, 2022 grant. CRA grants allow one approved grant every five years. He said there are six commercial beautification grants that have been approved but the applicants have not spent any funds. He expressed a concern regarding the budgetary impact if Mr. Hume was permitted to switch to the business renovation grant. Mr. Jackson said Mr. Humes has not received any of the grant funds for the commercial beautification grant. The City Manager said staff would like to have some leniency with the five-year rule in order to accommodate Mr. Humes'request. There was consensus among the Trustees to allow staff to look at the rules. 4. New Business Items 4.1 Discuss Fiscal Year 22/23 CRA/DDB Interlocal Agreement. In response to a comment, Downtown Development Board (DDB) Attorney Elise Winters said the meeting was not advertised as a DDB meeting. Conversations between the ex-officio members and DDB members are prohibited by the Sunshine Law. DDB members may provide a presentation and have a conversation with the non-ex-officio members. The City Attorney said DDB Chair Paris Morfopoulos may remain in the room while the other DDB members leave the room. He said he was not aware that the meeting was not noticed as a DDB meeting and agreed with Ms. Winters'concern. He said another option is to re-notice the meeting as a DDB and CRA meeting. Ms. Winters said the original appointments to the DDB were called ex-officio. The members have been referred to and treated as ex-officio members. She said the ex-officio members are appointed by the Trustees. The Chair is prepared to provide a report and have a dialogue with the non-ex-officio members. The City Attorney said the most prudent course of action would be to re-notice the meeting. He was not concerned with any discussions by the CRA Trustees as the meeting was noticed. He said the DDB could also designate a speaker today. Ms. Winters said each DDB member can do separate presentations. The members cannot speak with each other or with the ex-officio members. Page 3 City of Clearwater Community Redevelopment Agency Meeting Minutes September 12, 2022 Discussion ensued with comments made that it would be challenging for the DDB to spend the $400,000 and that Imagine Clearwater will provide an opportunity to the DDB for downtown event promotions. It was suggested that the funds be given to the CRA for initiatives and events. In response to a suggestion, Mr. Jennings expressed a concern with continuing the item as the budget must be approved by September 30. Mr. Jennings said he has received concerns from several business owners who said receiving the DDB grant funds is difficult. CRA staff is working on improving the process. He said one organization was requested to submit an audit, but staff was not able to find the request, which created the funding delay. He said the Trustees can approve the budget and amend it later. DDB Chair Paris Morfopolous said the DDB has tried to simplify the grant process. The grant application has been reduced from five pages to two pages. The DDB has a good track record of approving the grant applications. He said the pandemic has reduced the number of events and the construction of Imagine Clearwater has eliminated activity in the park. Many of the projects the DDB has funded in the past do not require volunteers or outside assistance. It was suggested to keep the status quo and allow the DDB the opportunity to spend funds. 4.2 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. 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 Page 4 City of Clearwater Community Redevelopment Agency Meeting Minutes September 12, 2022 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. Trustee Beckman moved to 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. The motion was duly seconded and carried unanimously. 4.3 Approve the Fiscal Year 2022-2023 Community Redevelopment Agency Preliminary Budget, adopt CRA Resolution 22-02, and authorize the appropriate officials to execute same. The purpose of this item is to adopt the Fiscal Year (FY) 2022-2023 Community Redevelopment Agency (CRA) budget. The proposed budget provides funding to implement the 2018 Clearwater Downtown Redevelopment Plan and the adopted 2021-2022 strategy. CRA programs are focused on creating a positive narrative for downtown, increasing investor confidence and placemaking. CRA projects include the redevelopment of CRA owned sites into mixed income apartments, reducing ground floor commercial vacancy, the beautification of public space through park and streetscape improvements and supporting new community engagement programs. The highlights of the FY 2022-2023 preliminary budget are as follows: 2022-2023 total Tax Increment Revenue is $5,808,432 which is an increase of $658,799 over the $5,149,633 Amended 2021-2022 revenue, reflecting an increase in taxable value of both the original CRA area and the expanded (Downtown Gateway) CRA. CRA funds are divided between Operating Expenditures and Project Funds. Operating Expenditures include the services, supplies and expenses that occur during the fiscal year and are primarily used for conducting the CRA's day to day operations as well as consulting services that will begin and end within the fiscal year. Project Funds include Interlocal Agreements, Capital Improvements, and funding for established programs whose work extends beyond one fiscal year. Project Funds carry over from year to year. This year's budget continues Page 5 City of Clearwater Community Redevelopment Agency Meeting Minutes September 12, 2022 the use of project funds established in 2020 that distinguish between City and County TIF dollars. Operating Expenditures have increased slightly by $21,903 from FY 21/22 to FY 22/23. This increase is to account for a new full-time staff position. Operating Expenditures also includes the pass-through revenues, $335,643, to the Downtown Development Board (DDB). Transfers Out designates the funding this fiscal year that will be allocated to various Project Funds. The costs for Interlocal agreements with the City and Police Department are found in the General Fund and Community Policing lines for a total of$958,125. The remaining City TIF revenue has been allocated to Economic Development ($1,769,724) to meet the CRA's commitment to the redevelopment of The Bluff sites ($1,500,000) and the vacancy reduction grant programs ($269,724). County TIF Funds, $2,490,740 for this fiscal year, are restricted to capital improvement projects, housing, and land acquisition. The County TIF funds have been allocated to Economic Development ($250,000) to support fagade grants, Housing ($1,700,000) to support the 306 S. Washington workforce housing development and Transportation ($540,740) to support improvements to Pinellas Trail. Trustee Bunker moved to approve the Fiscal Year 2022-2023 Community Redevelopment Agency Preliminary Budget, and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. CRA Resolution 22-02 was presented and read by title only. Vice Mayor Beckman moved to adopt CRA Resolution 22-02. The motion was duly seconded and upon roll call, the vote was: Ayes: 5 - Chair Hibbard, Trustee Beckman, Trustee Bunker, Trustee Allbritton and Trustee Teixeira 4.4 Approve an amendment to the agreement for the sale and development of the property located at 1250 Cleveland Street and adjacent properties to Archway Partners and assigned to Archway Clearwater Gardens, LLC to approve public assistance of an amount not to exceed $3,610,000 and authorize the appropriate officials to execute same. The purpose of this item is to request approval of a second amendment to an existing development agreement between the Community Redevelopment Agency (CRA)Archway Partners and assigned to Archway Clearwater Gardens, LLC for the redevelopment of 1250 Cleveland Street and adjoining properties. For the first amendment, in accordance with Section 4.05 Project Schedule of the agreement, Archway Partners requested and was approved a Page 6 City of Clearwater Community Redevelopment Agency Meeting Minutes September 12, 2022 one-year extension of all project deadlines. For the second amendment, Archway Partners is requesting public funds of an amount not to exceed $3,000,000 from the CRA and $610,000 from the Economic and Development Department After receiving two Letters of Interest that aligned with the goals of the Downtown Redevelopment Plan, the Community Redevelopment Agency issued RFP/Q 43-21 for the redevelopment of its 2.35-acre site at 1250 Cleveland Street on May 26, 2021. The request called for a mixed-use or apartment development that maintained or expanded the existing community garden. The RFP was awarded to Archway Partners on August 16, 2021, because of the project's excellent site design, developer experience, mixed income approach and rooftop garden. The proposed project is a 4-story, no less than 80-unit mixed income, affordable apartment development. The project has an urban design that fits the downtown design guidelines and will complement the new streetscape as well as provide an appropriate transition between the commercial uses on Cleveland Street and the residential area to the rear of the site. At a minimum, the amount of code required parking spaces will be provided, a rooftop garden and preservation of the existing community garden. There are one bedroom and two-bedroom units that range from 650-975 square feet of floor area. The units will be limited to between 30-80% AMI and will be income restricted for the life of the project. The building will obtain green building certification. The overall project cost is approximately $28,000,000. Construction of the project was contingent on obtaining additional state funding. The developer failed to obtain four percent affordable housing tax credits/SAIL funding, in 2021 and may be submitting for nine percent tax credit financing as well as four percent tax credit financing in 2022 and requesting approximately $4 million in County funds through their Penny for Pinellas Program. The 30% "basis boost" is no longer available on this site which will make future 4% tax credit applications unfeasible; however, since the Developer already applied for bonds in 2021, the basis boost is preserved as long as the bonds are closed by the end of 2023. The Developer has also obtained 20 Project-Based Vouchers (PBVs) from the Clearwater Housing Authority, which are worth approximately $2 million in funding towards the development. The project-based vouchers add additional revenue, which allows for an increase in available cash flow to support approximately $2 million of additional debt. However, if they are unsuccessful and the CRA elects not to amend the agreement, the development more than likely will cease due to the funding gap of approximately $10 million dollars. Additionally, the funding requested from the CRA and City will allow this development to move forward. The proposed project meets the goals outlined in RFP/Q 43-21 derived from the Principles, Goals and Objectives of the 2018 Clearwater Downtown Redevelopment Plan to support redevelopment projects that are pedestrian friendly, incorporate quality urban design and provide a variety of land uses in Page 7 City of Clearwater Community Redevelopment Agency Meeting Minutes September 12, 2022 downtown, including: Policy 12: The City shall make use of Community Development Block Grant, HOME Investment Partnership Program, State Housing Initiatives Partnership program, and other federal, state, and county funds for Downtown infrastructure and increasing affordable housing options. Policy 18: The design of all projects in Downtown shall incorporate pedestrian-scale elements that create and maintain an inviting pedestrian environment. Objective 1 F: Allow for a variety of residential densities and housing types to provide for a range of affordability and mix of incomes consistent with the Character Districts. Objective 1 G: Continue to utilize a variety of incentives to encourage the construction of new residential uses to location Downtown. The $3,000,000 contribution from the CRA will be in the form of an interest-free, deferred loan. This is an excellent plan and Archway Partners is the right development team for this project. Approval of the amendment to allow public assistance of an amount not to exceed $3,000,000 is recommended. APPROPRIATION CODE AND AMOUNT: Funds are available and allocated in project code R2010 - County - Housing Trustee Teixeira moved to approve an amendment to the agreement for the sale and development of the property located at 1250 Cleveland Street and adjacent properties to Archway Partners and assigned to Archway Clearwater Gardens, LLC to approve public assistance of an amount not to exceed $3,610,000 and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4.5 Approve Fiscal Year 2021/2022 Third Quarter Budget Amendments of the Community Redevelopment Agency (CRA) and adopt CRA Resolution 22-03. Staff is recommending a transfer of$12,266 from Info Tech Charges to adjust operating expenditures to account for increases in Postal Services, Other Promotional Activities, Other Services, Office Supplies. A transfer of$1,870,000 from R2010 Housing-County to R2006 Infrastructure-County for the purchase of Peace Memorial Church site as approved at the August 15, 2022 CRA meeting. CRA Resolution 22-03 was presented and read by title only. Trustee Allbritton moved to approve Fiscal Year 2021/2022 Third Page 8 City of Clearwater Community Redevelopment Agency Meeting Minutes September 12, 2022 Quarter Budget Amendments of the Community Redevelopment Agency (CRA) and adopt CRA Resolution 22-03. The motion was duly seconded and upon roll call, the vote was: Ayes: 5 - Chair Hibbard, Trustee Beckman, Trustee Bunker, Trustee Allbritton and Trustee Teixeira 4.6 Approve Tenant Improvement Grant Agreement with Sports Facilities Companies, LLC, for retention and expansion of Headquarters operation and authorize the appropriate officials to execute same. Proposed project is an expansion of Sports Facilities Companies' headquarters operation. The company currently employs 60 at its Clearwater location, anticipates adding at least 10 new jobs per year for 5 years for a total of no fewer than 50 net new jobs in 5 years. Thus, the company will lease approximately 5,600 additional square feet to accommodate the expansion. Company stated they are evaluating site locations outside of downtown area including locations in other municipalities of Pinellas and Hillsborough counties. Fiscal & Economic Analysis: Economic Development Division conducted a fiscal and economic impact analysis and finds that the project is expected to yield approximately $298,000 in net benefits to the CRA over a 10-year period and that a Tenant Improvement Grant of$100,000 will have a 29.8% rate of return, with a payback period of 4.2 years. Direct and Indirect ("Spin-off')jobs will total an estimated 227 retained and new jobs in the Downtown area. Total capital investment, including landlord's tenant improvement allowance, is anticipated to be $900,000. Basis for Consideration of Incentives: The proposed project is located within the Downtown Core Character District. Use of Community Redevelopment Agency (CRA) funds is consistent with Goals & Objectives of Clearwater Downtown Redevelopment Plan (hereafter, "Plan"). Specifically, 1. People Goal: Objective 1 D and Policy 8 which state, in part, "Encourage a variety of office-intensive businesses ..." and, "The CRA will develop property owner incentives for building improvements to support intensive office uses ..." The Plan also provides the following considerations for use of tax increment finance (TIF) funds for incentives: 1) Is the proposed incentive compliant with federal, state, and local laws? 2) Is the proposed incentive aligned with the Vision and Goals of the 2018 Downtown Redevelopment Plan? 3) Has the private sector attempted to implement this project without an incentive? 4) What is the expected return on investment from a financial and public benefit perspective? 5) Does the site/building under consideration have adequate access to the required public infrastructure and/or public utilities to support the proposed use? For each of these questions, the answer is, "yes". Page 9 City of Clearwater Community Redevelopment Agency Meeting Minutes September 12, 2022 About Sports Facilities Companies: Since 2003, the Sports Facilities Companies, comprised of Sports Facilities Advisory, Sports Facilities Management, and Sports Facilities Development, have been a resource for communities who want to plan, fund, develop, or operate sports, recreation, entertainment, and fitness centers. APPROPRIATION CODE AND AMOUNT: For fiscal year 2022/23, funds are available in CRA Project 3887552-R2003 - Economic Development-City. In response to questions, Economic Development and Housing Director Denise Sanderson said the agreement would compare to one approved for The Ring, the CRA invested $600,000. The group is looking to take over the rest of the 9th floor. She said the funds are to expand in Downtown and stay in the location for ten years. Trustee Bunker moved to approve Tenant Improvement Grant Agreement with Sports Facilities Companies, LLC, for retention and expansion of Headquarters operation and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 5. Director's Report In response to questions, CRA Assistant Director Matt Jackson said staff is actively reaching out to individuals and organizations interested in holding events in Station Square Park. Staff is working with Scorpion Brewing Hall on the projected construction timeline, cost and funding. He said a healthy living grocery store and Kara Lynn's second location is expected to open within the next month. Planning and Development Director Gina Clayton said Nash Keys has been addressing the fire issues on the first and second floors.The project is moving in the right direction but opening day is still unknown. Mr. Jackson said there is no written record that the Mercado underwent a name change. There was a discussion among CRA and Engineering staff regarding changing the name to The Festival Core, in an effort to be more inclusive. The public art installations in the space would recognize the different cultural identities in the city. The City Manager said Trustee Teixeira has spent a lot of time talking to leadership in the neighborhood, there seems to be agreement with the most recent rendition of the grassy area. Regardless what it is called, staff Page 10 City of Clearwater Community Redevelopment Agency 6. Adjourn Meeting Minutes September 12, 2022 wishes to move forward with the streetscaping work. He said a Meet and Greet with the CRA Executive Director Candidates will be held this Friday. A survey will be used to seek public feedback. The meeting adjourned at 9:07 a.m. Chair Attest Community Redevelopment Agency — Ldt-tit 00 c (74J-( ,,,N�►nlurr,n, City Clerk �<C�����JELOpMc�i,�� A. z OA. f' .CORPORATE . ;`O�n i1.°$Y$ 14,11,"ORIDA00 Page 11 City of Clearwater