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02/13/2023Monday, February 13, 2023 1:00 PM City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 Main Library - Council Chambers Community Redevelopment Agency Meeting Agenda February 13, 2023Community 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 (February 12) 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. 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 January 9, 2023 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 Amend the Loan to Grant Agreement with 949 Cleveland Street, LLC for the property at 943 Cleveland Street, to extend the agreement to September 1, 2023, for building improvements to implement the CRA Food and Drink Grant Program and authorize the appropriate officials to execute same. 4.2 Amend the Loan to Grant Agreement with 949 Cleveland Street, LLC for the property at 1011 Cleveland Street, to extend the agreement to September 1, 2023, for building improvements to implement the CRA Food and Drink Grant Program and authorize the appropriate officials to execute same. 4.3 Amend a Loan to Grant Agreement with 949 Cleveland Street, LLC for the properties at 1017, 1023 and 1029 Cleveland Street, to extend the agreement to September 1, 2023, for building improvements to implement the CRA Food and Drink Grant Program and authorize the appropriate officials to execute same. Page 2 City of Clearwater Printed on 2/8/2023 February 13, 2023Community Redevelopment Agency Meeting Agenda 5. Director's Report 6. Adjourn Page 3 City of Clearwater Printed on 2/8/2023 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#23-0113 Agenda Date: 2/13/2023 Status: Agenda ReadyVersion: 1 File Type: MinutesIn Control: Community Redevelopment Agency Agenda Number: 2.1 SUBJECT/RECOMMENDATION: Approve the minutes of the January 9, 2023 CRA meeting as submitted in written summation by the City Clerk. SUMMARY: Page 1 City of Clearwater Printed on 2/8/2023 Community Redevelopment Agency Meeting Minutes January 9, 2023 Page 1 City of Clearwater City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 Meeting Minutes Monday, January 9, 2023 1:00 PM Main Library - Council Chambers Community Redevelopment Agency Draft Community Redevelopment Agency Meeting Minutes January 9, 2023 Page 2 City of Clearwater Rollcall Present 5 - Chair Frank Hibbard, Trustee Kathleen Beckman, Trustee Mark Bunker, Trustee David Allbritton, and Trustee Lina Teixeira Also Present: Jennifer Poirrier – Interim City Manager, Michael Delk – Assistant City Manager, David Margolis – City Attorney, Rosemarie Call – City Clerk, Nicole Sprague – Deputy City Clerk, and Dr. Jaye Matthews – CRA Executive Director. To provide continuity for research, items are listed in agenda order although not necessarily discussed in that order. 1. Call to Order – Chair Hibbard The meeting was called to order at 1:00 p.m. 2. Approval of Minutes 2.1 Approve the minutes of the November 14, 2022 CRA Meeting as submitted in written summation by the City Clerk. Trustee Allbritton moved to approve the minutes of the November 14, 2022 CRA meeting as submitted in written summation by the City Clerk. The motion was duly seconded and carried unanimously. 3. Citizens to be Heard Regarding Items Not on the Agenda – None. 4. New Business Items 4.1 Discuss active CRA grants. Presentation and discussion regarding active CRA grants including subject properties, grant status, funds expenditure and remaining funds in each grant program. CRA Assistant Director Matt Jackson provided a PowerPoint presentation. In response to questions, Mr. Jackson said The Nolen will not be eligible to receive the remaining grant funds if an extension is not submitted by March 1, 2023. The Nolen will have to come back in February to request an extension for the cafe portion. He said The Nolen is aware of the deadline. Mr. Jackson said the business renovation grant is very Draft Community Redevelopment Agency Meeting Minutes January 9, 2023 Page 3 City of Clearwater successful and staff would like to allocate grant funds that are not being used towards the business renovation grant program. There was trustee consensus to provide Scorpion Hall Brewing a 2 to 4-week deadline for them to update staff on the project related to the $500,000 vacancy grant. It was suggested the letter be sent via certified mail. In response to a question, Mr. Jackson said communication with the Immersive Museum has been lagging; staff has not been provided any of the requested information related to project progress. There was trustee consensus to require the Immersive Museum provide staff with information related to the project's submission of building timeline by February 21, 2023. Mr. Jackson requested direction on the white box grant program. He said the business renovation grant is very successful and provides grantees $100,000. Staff recommends terminating the white box grant program as it is similar to the business renovation grant and only provides up to $50,000. In response to questions, Mr. Jackson said individuals have utilized the white box grant program. Grantees who were approved for a white box grant want to terminate their grant in order to pursue a business renovation grant, such as Papa Johns. Emily's is working with staff on a grant but it has not been submitted an application yet. Trustee Beckman moved to terminate the white box grant program. The motion was duly seconded and carried unanimously. 4.2 Recommend approval of Resolution 23-01 to the City Council that adopts the North Greenwood Community Redevelopment Area Plan. The purpose of a Community Redevelopment Plan is to address the unique needs of the targeted area and includes the overall goals for redevelopment in the area, as well as identifying specific projects. The North Greenwood Community Redevelopment Area Plan (CRA Plan) establishes policies and strategies that guide future actions and projects of the city’s Community Redevelopment Agency. The plan includes strategies designed to promote the improvement of North Greenwood’s social and physical conditions within the future 20-year planning horizon. They are intended to minimize negative Draft Community Redevelopment Agency Meeting Minutes January 9, 2023 Page 4 City of Clearwater impacts of gentrification and displacement with a focus on the most vulnerable populations who are low-income people of color. There was extensive engagement and outreach done to build consensus and provide a better understanding of community needs and the marketplace to guide development of the CRA Plan. Through the public engagement process six overriding goals were identified and the implementation strategies in the CRA Plan are organized by these goal topics, which include: Public Safety, Mobility, Poverty Reduction, Housing Availability, Quality of Life, and Invest in Youth. These implementation strategies have two primary sources of funding- Tax Increment Financing (TIF) and American Rescue Plan Act Funds (ARPA). Tax increment financing projections have been calculated for the CRA using the 2021 property tax value as the base year for the CRA; however, the intent is to base the CRA on the 2022 property tax value when it is available. TIF projections for the CRA assumed city and county millage rates would remain constant, property value would increase 3% each year, and there would be $100 million in development in the Old Bay District (accounted for in years 6-12). Based on these assumptions, it is projected that the CRA could generate approximately $30 million in tax increment over the next 20 years. Additionally, City Council approved $5 million in ARPA funding to go towards implementation of the CRA Plan. This funding must be allocated by the end of 2024 and spent by the end of 2026. People- and place-based strategies were identified and organized in the CRA Implementation Table in Chapter 4 of the CRA Plan by goal topics and include the estimated cost, funding source(s), and timeline for execution and who will lead the project or strategy. The Community Development Board, in its capacity as the Local Planning Agency, reviewed the proposed North Greenwood Community Redevelopment Area Plan at a public hearing on December 20, 2022, and unanimously recommended approval of Resolution No. 23-01 to City Council. However, after the meeting of the Community Development Board, the city received comments from Pinellas County staff that required changes to the CRA Plan before it is presented to the City Council. The changes include a correction to the county millage rate, which resulted in an update to Table 11 TIF Projections and Appendix C Tax Increment Projection. Appendix E TIF Expenditures was added to address several County staff comments and includes a narrative covering how the projects and strategies connect to the Finding of Necessity Study and that the city will not incur debt as a result of this CRA. Appendix E also includes tables that were created from the existing Tables 14 and 15 to show only items funded by TIF dollars and specifically identify which projects and strategies that will be funded by County TIF dollars. The total projected TIF increment as well as the total proposed TIF expenditure for each year over the first ten years is included in the tables. The Community Redevelopment Agency has the authority and responsibility to make a recommendation on the proposed North Greenwood Community Redevelopment Area Plan to the City Council. The Council has the authority for the final decision on plan adoption. Draft Community Redevelopment Agency Meeting Minutes January 9, 2023 Page 5 City of Clearwater Planning Division Manager Jayme Lopko provided a PowerPoint presentation. In response to questions, Ms. Lopko said privately-owned streets are driveways; there are two or three in the city. The rehabilitation of existing single-family homes was a highlight from the engagement response. She said there are strategies to develop new housing, focusing on infill and small scale. Tables 14 and 15 list the monies set aside needed to accomplish the identified strategy. She said the only funding source that is set in stone is the TIF. The one-time emergency assistance line item could be used for items a low-income household would need to get to work or get a child to school. The one-time emergency assistance funds can only for citizens, not non-profits or businesses. If Citizens Advisory Committee members are elected, the CRA staff would hold the election. Ms. Lopko said three of the nine-member South St. Petersburg CRA are appointed by the Board of County Commissioners. CRA Executive Director Jaye Matthews said she could pull best practices from the Baltimore CRA and bring back to the Trustees. In response to questions, Ms. Lopko said the Trustees need to determine the number of members that will comprise the Citizens Advisory Committee and determine if the members will be appointed or elected. The City Attorney said the plan identifies a 5-member advisory board, three of which will be elected by the voters in the area and two appointed by the City Council. He recommended the Trustees take the time to talk about the membership and discuss the County's request to increase the membership and to determine what the county commission feels comfortable pursuing. He said the redevelopment plan does not specify any stipends for the advisory board members. Ms. Lopko said if Council approves the plan, the next step would be to take the plan to the Board of County Commission for approval. The City Attorney said council can make alterations before Thursday. The item before the Trustees is to approve a redevelopment plan which is materially different than the one presented today. He said the governance structure in the presentation is not the same governance structure articulated in the plan. Planning and Development Director Gina Clayton said if the Trustees are not comfortable with elected members and prefer the members be appointed, staff recommends directing staff to implement the change before the council meeting. Ms. Lopko said the staggered terms and the stipend can be addressed when the bylaws are created. Ms. Clayton said the stipend would come from CRA funds. Ms. Lopko said the County has requested to increase Draft Community Redevelopment Agency Meeting Minutes January 9, 2023 Page 6 City of Clearwater the membership to seven, with two appointed by the county. Staff did not want to see prospective residents interested in serving on the committee to be a detriment because they work; the small stipend could offset their ability to serve. The City Attorney said stipends are not given to current advisory board members. The stipend could be paid through the CRA as an administrative cost; he raised concerns with potential tax issues. Ms. Lopko said since the trust fund will require two readings, approval the plan can be delayed to February 2, 2023 without it impacting the county approval. Ms. Clayton said if the County Commission does not approve the plan by May, the TIF will not go into effect for another year. One individual spoke in support and stated that the steering committee did not request the stipend. She said the stipend was added to cover some of the campaign costs associated with running an election. She expressed concerns with increasing the citizen advisory committee to seven as it will be difficult to find five individuals willing to serve. The St. Petersburg CRA has difficulty filling seats for their 9-member board. Trustee Beckman moved to recommend approval of Resolution 23-01 to the City Council that adopts the North Greenwood Community Redevelopment Area Plan and change the governance to appoint five members, three by City Council and two by Pinellas County, with staggered terms and no stipend to be included in the bylaws. The motion was duly seconded and carried unanimously. 5. Director's Report CRA Executive Director Jaye Matthews reviewed a recent article in the Business Observer about Downtown Clearwater. Special Events Coordinator Vickie Shire provided a PowerPoint presentation regarding the recent events and community partnerships for the 2022 Holiday Extravaganza. Dr. Matthews reviewed upcoming events and said staff is evaluating the CRA grants to determine what is working and the requirements needed to revamp the grants program. She will meet business owners on Thursdays in February to seek their feedback and suggestions. Staff is working on programming Station Square Park this Spring. She said some of the furniture will be stored away as it is not fully utilized at all times. Staff is working collaboratively to program the Pinellas Trail. Trustee Beckman expressed concerns with a citizen's complaints related Draft Community Redevelopment Agency Meeting Minutes January 9, 2023 Page 7 City of Clearwater to overflowing dumpsters near drains that should be addressed by code enforcement and requested consideration to instruct Solid Waste to conduct daily trash pickups. Trustee Beckman said there was a suggestion for the Market Marie to have an electronic sign near Myrtle Avenue to direct attendees to Station Square Park. It was stated that sign would be located on Myrtle and Court Street (SR 60) and would require the Florida Department of Transportation to approve. Trustee Beckman questioned the activity on the corner of Martin Luther King, Jr. Avenue and Gulf to Bay Boulevard; she noted a large sign depicting potential development. In response to questions, Deputy Police chief Michael Walek said the homeless count is conducted once a month. Kathy Hamm, the Department’s Police Social Services Specialist, uses all available resources. He said he would get additional information regarding the definition for a new subject and where the funds are being received to provide assistance. CRA Assistant Director Matt Jackson said 60 S. Washington project has been resubmitted with significant changes noted in the sources of funds. The project was not ready to move forward today. 6. Adjourn The meeting adjourned at 2:30 p.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#23-0054 Agenda Date: 2/13/2023 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.1 SUBJECT/RECOMMENDATION: Amend the Loan to Grant Agreement with 949 Cleveland Street, LLC for the property at 943 Cleveland Street, to extend the agreement to September 1, 2023, for building improvements to implement the CRA Food and Drink Grant Program and authorize the appropriate officials to execute same. SUMMARY: At the October 29, 2018, Community Redevelopment Agency (CRA) meeting, the CRA Trustees approved a time limited, grant program for property owners to support the establishment of new food and drink businesses that are open on nights and weekends in the Downtown Core and Prospect Lake districts in the CRA area. Under this program, property owners must commit, at a minimum, to matching the CRA’s grant funding, dollar for dollar, for building improvements that will be maintained for a minimum of five years. The owner must also maintain a lease with a business that serves food and/or drinks on nights and weekends for a minimum of five years.   On February 18, 2020, the CRA Trustees determined that the applicant’s proposal met the program requirements and approved a loan to grant in the amount of $187,632.50 for 949 Cleveland LLC to build out a vacant storefront and establish a coffee and dessert shop that will serve hot and cold drinks along with a wide selection of desserts. The total project cost is $375,265.00. The applicant planned to complete construction by February 18, 2021. Due to the COVID-19 pandemic, construction was delayed. The CRA Trustees approved an extension to March 1, 2022.   On February 14, 2022, the CRA Trustees approved a second extension to March 1, 2023, due to the continued effects of the COVID-19 pandemic delaying progress as well as the applicant not being able to secure a general contractor until late 2021. They received a building permit and are nearing construction completion. The space requires a roof replacement including structural engineered drawings, permitting, procurement and the subsequent installation. Furthermore, the materials needed are expected to be received in the next few weeks allowing construction to be completed on the roof by the end of April. Upon completion, the HVAC systems will be installed along with fixtures, equipment, and finishes. Separate from the construction, the space originally intended for a café is being modified to restaurant to ensure meeting the intent of the space with the requirement of being open from 5:00pm to 10:00pm. This results in required permit modifications before final build out. As such, the applicant is not able to meet the March 1, 2023, deadline. They have requested a third amendment to extend the grant agreement to the end of the current year to complete the project and open the new businesses. Page 1 City of Clearwater Printed on 2/8/2023 File Number: ID#23-0054   Staff recommends amending the grant for six months to allow a new completion date of September 1, 2023.  This site is critical to serving existing residents and attracting new residents to apartment developments in this area and, in turn, generating a favorable market to encourage new housing developments in the downtown core. It will also fill a persistently vacant site on Cleveland Street. The original grant agreement incorporates the property owner’s full application and financial documents to secure the loan to grant agreement over a five-year period. Those documents will remain unchanged. APPROPRIATION CODE AND AMOUNT: Funds for this grant are available in 3887552-R2003 Economic Development-City Page 2 City of Clearwater Printed on 2/8/2023 CLEVELAND STREET MARKET Table of Contents: Page 1: Project Summary Page 2: Progress Photos 485 South Keller Road, Suite 520 | Maitland FL 32751 | (407) 872-1900 nvisiondevelopment.com COMMUNITY REDEVELOPMENT AGENCY FOOD & DRINK GRANT EXTENSION REQUEST Project: Cleveland Street Market Project Addresses: 943 Cleveland Street Clearwater Fl, 33756 1011 Cleveland Street Clearwater Fl, 33756 (Lower Marketplace) 1017-1029 Cleveland Street Clearwater Fl, 33756 (Upper Marketplace) Owner: 949 Cleveland Street, LLC Date: January 17th, 2023 Nvision Development is writing to request grant extension for the Cleveland Street Market at The Nolen Apartments, currently set to expire on March 1, 2023. Over the past year, the construction of Cleveland Street Market has gained substantial progress, while also facing a handful of unforeseen challenges. In the lower, all millwork fabrication is nearing completion, ceiling supports are being hung to hold the millwork, and HVAC systems are being installed. The upper marketplace is ready for millwork installation. The upper kitchen and public restrooms have been completed. The Top Golf Swing Suites are installed and awaiting permanent power for a final connection. While nearing completion, these spaces have been delayed due to supply chain issues related to permanent power. The original schedule provided by the General Contractor indicated permanent power being in place in February of 2022. The meter cans were not received and installed until January 2023. While the contractor has continued to complete certain tasks despite the delay, they were unable to complete certain line items related to finishing of the space until the air conditioning went live. The remaining scope of work mainly includes millwork installation and build-out of individual stalls, which will require additional permitting timing. The café space will require the longer extension when compared to the other two spaces due to unforeseen conditions, leaving the space requiring a roof replacement prior to recommencement of work. The fix required review of the issues, structural engineered drawings, permitting, procurement, and subsequent installation of roof replacement. The material is expected to be received in the next few weeks, allowing construction to be completed on the roof by the end of April. Upon completion, the HVAC systems will be installed, with FF&E and finishes following. Separate from construction, the originally anticipated use in this space has been modified from café to restaurant to ensure we are better meeting the intent of the space with the requirement to be open from 5:00PM – 10:00PM. As a result, permit modifications will be required prior to recommencement of the interior buildout. Final discussions on the intended use are in progress. Given these setbacks and with the intent to open as soon as possible, we are requesting an extension through the end of the year. We appreciate the City’s understanding of the challenges faced and look forward to delivering this amenity to the City of Clearwater. 485 South Keller Road, Suite 520 | Maitland FL 32751 | (407) 872-1900 nvisiondevelopment.com Upper Marketplace: Top Golf Swing Suites Upper Marketplace: Back of House Kitchen Upper Marketplace: Restrooms Upper Marketplace: Murals 485 South Keller Road, Suite 520 | Maitland FL 32751 | (407) 872-1900 nvisiondevelopment.com Lower Marketplace: Keg Walk-In Cooler Lower Marketplace: Mural Lower Marketplace: Millwork Ceiling Cloud Structures Lower Marketplace: Progress Overview 485 South Keller Road, Suite 520 | Maitland FL 32751 | (407) 872-1900 nvisiondevelopment.com Cafe/Restaurant: Overview Cafe/Restaurant: Slab Poured & Utilities Stubbed Up Cafe/Restaurant: Rooftop Underway – Support Walls Cafe/Restaurant: Kitchen Cafe/Restaurant: Overview THIRD AMENDMENT TO THE FOOD AND DRINK PROPERTY OWNER GRANT PROGRAM LOAN-TO-GRANT AGREEMENT 485 N. KELLER ROAD, SUITE 520, MAITLAND, FL 32751 949 CLEVELAND STREET, LLC THIS THIRD AMENDMENT TO THE FOOD AND DRINK PROPERTY OWNER GRANT PROGRAM LOAN-TO-GRANT AGREEMENT, entered into this ____day of __________, 2023, by and between the Community Redevelopment Agency of the City of Clearwater, Florida (hereafter "CRA"), whose address is P.O. Box 4748, Clearwater, Florida 33758-4748, a public body corporate and politic of the State of Florida, and 949 Cleveland Street, LLC, a Florida limited liability company whose address is 485 N. Keller Road, Suite 520, Maitland, FL 32751 (hereinafter "Borrower"). WITNESSETH WHEREAS , the CRA and the Borrower entered into a Food and Drink Business Property Owner Grant Program Loan-to-Grant Agreement ("the Agreement") on February 27, 2020 for the property commonly referred to as 943 Cleveland Street, Clearwater, FL 33756; and WHEREAS, the CRA and the Borrower amended certain provisions of the Agreement on January 15, 2021; and WHEREAS, the CRA and the Borrower amended certain provisions of the Agreement on January 24, 2022; and WHEREAS, the parties now again desired to amend certain provisions of the Agreement on the terms and conditions contained here; NOW THEREFORE, in consideration of the premises, the mutual covenants, and promises contained herein , and other good and valuable consideration, the Borrower and the CRA agree and covenant each with the other as follows: Section 1. Section B " Program Funding," Paragraph 3 of the Agreement is amended to read as follows: Loan funds will be disbursed on a monthly reimbursement basis for satisfactorily completed work towards the Project. However, the final 10% of the loan funds will not be disbursed until Borrower obtains a Final Certificate of Occupancy and the proposed restaurant use is open for business during the required business hours. Additionally, if Borrower does not obtain a Final Certificate of Occupancy and the proposed restaurant is not open for business by September 1, 2023, Borrower agrees that this Agreement shall become null and void, that Borrower will not be entitled to the final 10%, and that the CRA will be entitled to the return of any loan funds disbursed under this Agreement. Section 2. Section D "Default by Borrower," Paragraph 2 of the Agreement is amended to read as follows: Borrower's failure to obtain a Final Certificate of Occupancy or to open the proposed restaurant for business by September 1, 2023. Section 3. All terms and provisions of the Agreement not modified, changed, or amended hereby shall remain in full force and effect. IN WITNESS WHEREOF, the Borrower and CRA have executed or caused these presents to be executed by its respective authorized representatives to be effective as of the day and year first above written. This Amendment is executed in two original copies of which one is to be delivered to the Borrower and one to the CRA. COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA By: Frank V. Hibbard Chairperson Approved as to form: Attest: ________________________ _______________________________ Michael P. Fuino Rosemarie Call CRA Attorney Clearwater City Clerk BORROWER: 949 Cleveland Street, LLC, a Florida limited liability company By: _______________________ Its: _______________________ STATE OF FLORIDA ] COUNTY OF PINELLAS ] The foregoing instrument was acknowledged before me this _____ day of _____________________, who is personally known to me or who has produced a driver’s license as identification. My Commission expires: Notary Public Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#23-0056 Agenda Date: 2/13/2023 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.2 SUBJECT/RECOMMENDATION: Amend the Loan to Grant Agreement with 949 Cleveland Street, LLC for the property at 1011 Cleveland Street, to extend the agreement to September 1, 2023, for building improvements to implement the CRA Food and Drink Grant Program and authorize the appropriate officials to execute same. SUMMARY: At the October 29, 2018 Community Redevelopment Agency (CRA) meeting, the CRA Trustees approved a time limited, grant program for property owners to support the establishment of new food and drink businesses that are open on nights and weekends in the Downtown Core and Prospect Lake districts in the CRA area. Under this program, property owners must commit, at a minimum, to matching the CRA’s grant funding, dollar for dollar, for building improvements that will be maintained for a minimum of five years. The owner must also maintain a lease with a business that serves food and/or drinks on nights and weekends for a minimum of five years. On February 18, 2020, the CRA Trustees determined that the applicant’s proposal met the program requirements and approved a loan to grant in the amount of $250,000 for 949 Cleveland LLC to build out a vacant storefront and establish a self-serve beer and wine bar with indoor and outdoor lounge areas. The total project cost is $610,438.00. The applicant planned to complete construction by February 18, 2021. Due to the COVID-19 pandemic, construction was delayed. The CRA Trustees approved an extension to March 1, 2022. On February 14, 2022, the CRA Trustees approved a second extension to March 1, 2023, due to the continued effects of the COVID-19 pandemic delaying progress as well as the applicant not being able to secure a general contractor until late 2021. They received a building permit and are nearing construction completion. Due to supply chain issues related to permanent power and the inability to complete certain timeline items related to finishing of the space until the air conditioning went live, they are not able to meet the March 1, 2023, deadline. They have requested a third amendment to extend the grant agreement to the end of the current year to complete the project and open the new businesses. Staff recommends amending the grant to allow a new completion date of September 1, 2023. This site is critical to serving existing residents and attracting new residents to apartment developments in this area and, in turn, generating a favorable market to encourage new housing developments in the downtown core. It will also fill a persistently vacant site on Cleveland Street. The original grant agreement incorporates the property owner’s full Page 1 City of Clearwater Printed on 2/8/2023 File Number: ID#23-0056 application and financial documents to secure the loan to grant agreement over a five -year period. Those documents will remain unchanged. APPROPRIATION CODE AND AMOUNT: Funds for this grant are available in 3887552- R2003 Economic Development- City Page 2 City of Clearwater Printed on 2/8/2023 CLEVELAND STREET MARKET Table of Contents: Page 1: Project Summary Page 2: Progress Photos 485 South Keller Road, Suite 520 | Maitland FL 32751 | (407) 872-1900 nvisiondevelopment.com COMMUNITY REDEVELOPMENT AGENCY FOOD & DRINK GRANT EXTENSION REQUEST Project: Cleveland Street Market Project Addresses: 943 Cleveland Street Clearwater Fl, 33756 1011 Cleveland Street Clearwater Fl, 33756 (Lower Marketplace) 1017-1029 Cleveland Street Clearwater Fl, 33756 (Upper Marketplace) Owner: 949 Cleveland Street, LLC Date: January 17th, 2023 Nvision Development is writing to request grant extension for the Cleveland Street Market at The Nolen Apartments, currently set to expire on March 1, 2023. Over the past year, the construction of Cleveland Street Market has gained substantial progress, while also facing a handful of unforeseen challenges. In the lower, all millwork fabrication is nearing completion, ceiling supports are being hung to hold the millwork, and HVAC systems are being installed. The upper marketplace is ready for millwork installation. The upper kitchen and public restrooms have been completed. The Top Golf Swing Suites are installed and awaiting permanent power for a final connection. While nearing completion, these spaces have been delayed due to supply chain issues related to permanent power. The original schedule provided by the General Contractor indicated permanent power being in place in February of 2022. The meter cans were not received and installed until January 2023. While the contractor has continued to complete certain tasks despite the delay, they were unable to complete certain line items related to finishing of the space until the air conditioning went live. The remaining scope of work mainly includes millwork installation and build-out of individual stalls, which will require additional permitting timing. The café space will require the longer extension when compared to the other two spaces due to unforeseen conditions, leaving the space requiring a roof replacement prior to recommencement of work. The fix required review of the issues, structural engineered drawings, permitting, procurement, and subsequent installation of roof replacement. The material is expected to be received in the next few weeks, allowing construction to be completed on the roof by the end of April. Upon completion, the HVAC systems will be installed, with FF&E and finishes following. Separate from construction, the originally anticipated use in this space has been modified from café to restaurant to ensure we are better meeting the intent of the space with the requirement to be open from 5:00PM – 10:00PM. As a result, permit modifications will be required prior to recommencement of the interior buildout. Final discussions on the intended use are in progress. Given these setbacks and with the intent to open as soon as possible, we are requesting an extension through the end of the year. We appreciate the City’s understanding of the challenges faced and look forward to delivering this amenity to the City of Clearwater. 485 South Keller Road, Suite 520 | Maitland FL 32751 | (407) 872-1900 nvisiondevelopment.com Upper Marketplace: Top Golf Swing Suites Upper Marketplace: Back of House Kitchen Upper Marketplace: Restrooms Upper Marketplace: Murals 485 South Keller Road, Suite 520 | Maitland FL 32751 | (407) 872-1900 nvisiondevelopment.com Lower Marketplace: Keg Walk-In Cooler Lower Marketplace: Mural Lower Marketplace: Millwork Ceiling Cloud Structures Lower Marketplace: Progress Overview 485 South Keller Road, Suite 520 | Maitland FL 32751 | (407) 872-1900 nvisiondevelopment.com Cafe/Restaurant: Overview Cafe/Restaurant: Slab Poured & Utilities Stubbed Up Cafe/Restaurant: Rooftop Underway – Support Walls Cafe/Restaurant: Kitchen Cafe/Restaurant: Overview THIRD AMENDMENT TO THE FOOD AND DRINK PROPERTY OWNER GRANT PROGRAM LOAN-TO-GRANT AGREEMENT 485 N. KELLER ROAD, SUITE 520, MAITLAND, FL 32751 949 CLEVELAND STREET, LLC THIS THIRD AMENDMENT TO THE FOOD AND DRINK PROPERTY OWNER GRANT PROGRAM LOAN-TO-GRANT AGREEMENT, entered into this ____day of __________, 2023, by and between the Community Redevelopment Agency of the City of Clearwater, Florida (hereafter "CRA"), whose address is P.O. Box 4748, Clearwater, Florida 33758-4748, a public body corporate and politic of the State of Florida, and 949 Cleveland Street, LLC, a Florida limited liability company whose address is 485 N. Keller Road, Suite 520, Maitland, FL 32751 (hereinafter "Borrower"). WITNESSETH WHEREAS , the CRA and the Borrower entered into a Food and Drink Business Property Owner Grant Program Loan-to-Grant Agreement ("the Agreement") on February 27, 2020 for the property commonly referred to as 1011 Cleveland Street, Clearwater, FL 33756; and WHEREAS, the CRA and the Borrower amended certain provisions of the Agreement on January 15, 2021; and WHEREAS, the CRA and the Borrower amended certain provisions of the Agreement on January 24, 2022; and WHEREAS, the parties now again desired to amend certain provisions of the Agreement on the terms and conditions contained here; NOW THEREFORE, in consideration of the premises, the mutual covenants, and promises contained herein , and other good and valuable consideration, the Borrower and the CRA agree and covenant each with the other as follows: Section 1. Section B " Program Funding," Paragraph 3 of the Agreement is amended to read as follows: Loan funds will be disbursed on a monthly reimbursement basis for satisfactorily completed work towards the Project. However, the final 10% of the loan funds will not be disbursed until Borrower obtains a Final Certificate of Occupancy and the proposed restaurant use is open for business during the required business hours. Additionally, if Borrower does not obtain a Final Certificate of Occupancy and the proposed restaurant is not open for business by September 1, 2023, Borrower agrees that this Agreement shall become null and void, that Borrower will not be entitled to the final 10%, and that the CRA will be entitled to the return of any loan funds disbursed under this Agreement. Section 2. Section D "Default by Borrower," Paragraph 2 of the Agreement is amended to read as follows: Borrower's failure to obtain a Final Certificate of Occupancy or to open the proposed restaurant for business by September 1, 2023. Section 3. All terms and provisions of the Agreement not modified, changed, or amended hereby shall remain in full force and effect. IN WITNESS WHEREOF, the Borrower and CRA have executed or caused these presents to be executed by its respective authorized representatives to be effective as of the day and year first above written. This Amendment is executed in two original copies of which one is to be delivered to the Borrower and one to the CRA. COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA By: Frank V. Hibbard Chairperson Approved as to form: Attest: ________________________ _______________________________ Michael P. Fuino Rosemarie Call CRA Attorney Clearwater City Clerk BORROWER: 949 Cleveland Street, LLC, a Florida limited liability company By: _______________________ Its: _______________________ STATE OF FLORIDA ] COUNTY OF PINELLAS ] The foregoing instrument was acknowledged before me this _____ day of _____________________, who is personally known to me or who has produced a driver’s license as identification. My Commission expires: Notary Public Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#23-0057 Agenda Date: 2/13/2023 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.3 SUBJECT/RECOMMENDATION: Amend a Loan to Grant Agreement with 949 Cleveland Street, LLC for the properties at 1017, 1023 and 1029 Cleveland Street, to extend the agreement to September 1, 2023, for building improvements to implement the CRA Food and Drink Grant Program and authorize the appropriate officials to execute same. SUMMARY: At the October 29, 2018 Community Redevelopment Agency (CRA) meeting, the CRA Trustees approved a time limited, grant program for property owners to support the establishment of new food and drink businesses that are open on nights and weekends in the Downtown Core and Prospect Lake districts in the CRA area. Under this program, property owners must commit, at a minimum, to matching the CRA’s grant funding, dollar for dollar, for building improvements that will be maintained for a minimum of five years. The owner must also maintain a lease with a business that serves food and/or drinks on nights and weekends for a minimum of five years. On February 18, 2020, the CRA Trustees determined that the applicant’s proposal met the program requirements and approved a loan to grant in the amount of $250,000 for 949 Cleveland LLC to build out a vacant storefront and establish a “micro” market, food hall concept with space for 8 vendors. The total project cost is $570,655.48. The applicant planned to complete construction by February 18, 2021. Due to the COVID-19 pandemic, construction was delayed. The CRA Trustees approved an extension to March 1, 2022. On February 14, 2022, the CRA Trustees approved a second extension to March 1, 2023, due to the continued effects of the COVID-19 pandemic delaying progress as well as the applicant not being able to secure a general contractor until late 2021. They received a building permit and are nearing construction completion. Due to supply chain issues related to permanent power and the inability to complete certain timeline items related to finishing of the space until the air conditioning went live, they are not able to meet the March 1, 2023, deadline. They have requested a third amendment to extend the grant agreement through the end of the current year to complete this project and open the new businesses. Staff recommends amending the grant agreement for six months to allow a new completion date of September 1, 2023. This site is critical to serving existing residents and attracting new residents to apartment developments in this area and, in turn, generating a favorable market to encourage new housing developments in the downtown core. It will also fill a persistently vacant site on Cleveland Street. The original grant agreement incorporates the property Page 1 City of Clearwater Printed on 2/8/2023 File Number: ID#23-0057 owner’s full application and financial documents to secure the loan to grant agreement over a five-year period. Those documents will remain unchanged. APPROPRIATION CODE AND AMOUNT: Funds for this grant are available in 3887552-R2003 Economic Development-City Page 2 City of Clearwater Printed on 2/8/2023 CLEVELAND STREET MARKET Table of Contents: Page 1: Project Summary Page 2: Progress Photos 485 South Keller Road, Suite 520 | Maitland FL 32751 | (407) 872-1900 nvisiondevelopment.com COMMUNITY REDEVELOPMENT AGENCY FOOD & DRINK GRANT EXTENSION REQUEST Project: Cleveland Street Market Project Addresses: 943 Cleveland Street Clearwater Fl, 33756 1011 Cleveland Street Clearwater Fl, 33756 (Lower Marketplace) 1017-1029 Cleveland Street Clearwater Fl, 33756 (Upper Marketplace) Owner: 949 Cleveland Street, LLC Date: January 17th, 2023 Nvision Development is writing to request grant extension for the Cleveland Street Market at The Nolen Apartments, currently set to expire on March 1, 2023. Over the past year, the construction of Cleveland Street Market has gained substantial progress, while also facing a handful of unforeseen challenges. In the lower, all millwork fabrication is nearing completion, ceiling supports are being hung to hold the millwork, and HVAC systems are being installed. The upper marketplace is ready for millwork installation. The upper kitchen and public restrooms have been completed. The Top Golf Swing Suites are installed and awaiting permanent power for a final connection. While nearing completion, these spaces have been delayed due to supply chain issues related to permanent power. The original schedule provided by the General Contractor indicated permanent power being in place in February of 2022. The meter cans were not received and installed until January 2023. While the contractor has continued to complete certain tasks despite the delay, they were unable to complete certain line items related to finishing of the space until the air conditioning went live. The remaining scope of work mainly includes millwork installation and build-out of individual stalls, which will require additional permitting timing. The café space will require the longer extension when compared to the other two spaces due to unforeseen conditions, leaving the space requiring a roof replacement prior to recommencement of work. The fix required review of the issues, structural engineered drawings, permitting, procurement, and subsequent installation of roof replacement. The material is expected to be received in the next few weeks, allowing construction to be completed on the roof by the end of April. Upon completion, the HVAC systems will be installed, with FF&E and finishes following. Separate from construction, the originally anticipated use in this space has been modified from café to restaurant to ensure we are better meeting the intent of the space with the requirement to be open from 5:00PM – 10:00PM. As a result, permit modifications will be required prior to recommencement of the interior buildout. Final discussions on the intended use are in progress. Given these setbacks and with the intent to open as soon as possible, we are requesting an extension through the end of the year. We appreciate the City’s understanding of the challenges faced and look forward to delivering this amenity to the City of Clearwater. 485 South Keller Road, Suite 520 | Maitland FL 32751 | (407) 872-1900 nvisiondevelopment.com Upper Marketplace: Top Golf Swing Suites Upper Marketplace: Back of House Kitchen Upper Marketplace: Restrooms Upper Marketplace: Murals 485 South Keller Road, Suite 520 | Maitland FL 32751 | (407) 872-1900 nvisiondevelopment.com Lower Marketplace: Keg Walk-In Cooler Lower Marketplace: Mural Lower Marketplace: Millwork Ceiling Cloud Structures Lower Marketplace: Progress Overview 485 South Keller Road, Suite 520 | Maitland FL 32751 | (407) 872-1900 nvisiondevelopment.com Cafe/Restaurant: Overview Cafe/Restaurant: Slab Poured & Utilities Stubbed Up Cafe/Restaurant: Rooftop Underway – Support Walls Cafe/Restaurant: Kitchen Cafe/Restaurant: Overview THIRD AMENDMENT TO THE FOOD AND DRINK PROPERTY OWNER GRANT PROGRAM LOAN-TO-GRANT AGREEMENT 485 N. KELLER ROAD, SUITE 520, MAITLAND, FL 32751 949 CLEVELAND STREET, LLC THIS THIRD AMENDMENT TO THE FOOD AND DRINK PROPERTY OWNER GRANT PROGRAM LOAN-TO-GRANT AGREEMENT, entered into this ____day of __________, 2023, by and between the Community Redevelopment Agency of the City of Clearwater, Florida (hereafter "CRA"), whose address is P.O. Box 4748, Clearwater, Florida 33758-4748, a public body corporate and politic of the State of Florida, and 949 Cleveland Street, LLC, a Florida limited liability company whose address is 485 N. Keller Road, Suite 520, Maitland, FL 32751 (hereinafter "Borrower"). WITNESSETH WHEREAS , the CRA and the Borrower entered into a Food and Drink Business Property Owner Grant Program Loan-to-Grant Agreement ("the Agreement") on February 27, 2020 for the property commonly referred to as 1017, 1023, 1029 Cleveland Street, Clearwater, FL 33756; and WHEREAS, the CRA and the Borrower amended certain provisions of the Agreement on January 15, 2021; and WHEREAS, the CRA and the Borrower amended certain provisions of the Agreement on January 24, 2022; and WHEREAS, the parties now again desired to amend certain provisions of the Agreement on the terms and conditions contained here; NOW THEREFORE, in consideration of the premises, the mutual covenants, and promises contained herein, and other good and valuable consideration, the Borrower and the CRA agree and covenant each with the other as follows: Section 1. Section B " Program Funding," Paragraph 3 of the Agreement is amended to read as follows: Loan funds will be disbursed on a monthly reimbursement basis for satisfactorily completed work towards the Project. However, the final 10% of the loan funds will not be disbursed until Borrower obtains a Final Certificate of Occupancy and the proposed restaurant use is open for business during the required business hours. Additionally, if Borrower does not obtain a Final Certificate of Occupancy and the proposed restaurant is not open for business by September 1, 2023, Borrower agrees that this Agreement shall become null and void, that Borrower will not be entitled to the final 10%, and that the CRA will be entitled to the return of any loan funds disbursed under this Agreement. Section 2. Section D "Default by Borrower," Paragraph 2 of the Agreement is amended to read as follows: Borrower's failure to obtain a Final Certificate of Occupancy or to open the proposed restaurant for business by September 1, 2023. Section 3. All terms and provisions of the Agreement not modified, changed, or amended hereby shall remain in full force and effect. IN WITNESS WHEREOF, the Borrower and CRA have executed or caused these presents to be executed by its respective authorized representatives to be effective as of the day and year first above written. This Amendment is executed in two original copies of which one is to be delivered to the Borrower and one to the CRA. COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA By: Frank V. Hibbard Chairperson Approved as to form: Attest: ________________________ _______________________________ Michael P. Fuino Rosemarie Call CRA Attorney Clearwater City Clerk BORROWER: 949 Cleveland Street, LLC, a Florida limited liability company By: _______________________ Its: _______________________ STATE OF FLORIDA ] COUNTY OF PINELLAS ] The foregoing instrument was acknowledged before me this _____ day of _____________________, who is personally known to me or who has produced a driver’s license as identification. My Commission expires: Notary Public