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02/13/2023 Community Redevelopment Agency Meeting Minutes February 13, 2023 City of Clearwater Main Library- Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 Meeting Minutes Monday, February 13, 2023 1 :00 PM Main Library - Council Chambers Community Redevelopment Agency Page 1 City of Clearwater Community Redevelopment Agency Meeting Minutes February 13, 2023 Roll Call Present 4 - Chair Frank Hibbard, Trustee Kathleen Beckman, Trustee David Allbritton, and Trustee Lina Teixeira Absent 1 - Trustee Mark Bunker 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 2:36 p.m. 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. Trustee Allbritton moved to approve the minutes of the January 9, 2023 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 Lisa Lanza expressed concerns with an ex-officio member of the DDB advocating funding for a specific community group. CRA Executive Director Jaye Matthews said CRA staffs recommendation to the DDB was within the Board's policy, which was established at $10,000 the month prior. In response to a comment, the City Attorney said ethics questions related to DDB should be directed to the DDB's attorney. From an ethics standpoint, he did not see anything wrong from the City's side. 4. New Business Items Page 2 City of Clearwater Community Redevelopment Agency Meeting Minutes February 13, 2023 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. 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 cafe is being modified to restaurant to ensure meeting the intent of the space with the requirement of being open from 5:OOpm 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. 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 Page 3 City of Clearwater Community Redevelopment Agency Meeting Minutes February 13, 2023 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 In response to questions, CRA Business Associate Administrator Howard Smith said, originally, the grant agreement was written for a specific use; restaurant that operated from 5:00 p.m. to 10:00 p.m., Wednesday through Sunday. The applicant knew of the requirement to operate in the evening. Development Manager Brittany Eveler said the cafe is located in a separate building. The original intention was for it to be a cafe space as the market area would have more of an afternoon and evening feel. Due to the nighttime operation requirement, it was decided to change the vendor. She said the main reason for the request was to address the structural issues that must be resolved prior to completing the buildout. There is an indoor ramp, which was approved and permitted with the original building permits. She said the structural issues were a result of the previous owner, the issues were discovered during the HVAC installation, which required to pause the project, Mr. Smith said the CRA has provided funding for the permanent structure improvements, the CRA is not funding any of the exterior improvements. He said staff has recommended a 6-month extension, which is consistent with previously approved extensions. Discussion ensued with support expressed to extend the agreement to December 31, 2023. Trustee Beckman moved to amend the Loan to Grant Agreement with 949 Cleveland Street, LLC for the property at 943 Cleveland Street, to extend the agreement to December 31, 2023, for building improvements to implement the CRA Food and Drink Grant Program and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4.2 Amend the Loan to Grant Agreement with 949 Cleveland Street, LLC for the property at 1011 Cleveland Street, to extend the agreement to September 1, 2023, for building improvements to implement the CRA Food and Drink Grant Program and authorize the appropriate officials to execute same. Page 4 City of Clearwater Community Redevelopment Agency Meeting Minutes February 13, 2023 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 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 In response to questions, Development Manager Brittany Eveler said permanent electrical power was not received until first quarter or 2023. CRA Executive Director Jaye Matthews said the Trustees historically have provided 6-month extensions and directed CRA staff to recommend a 6-month extension. Mr. Smith said staff was provided photographs of the Page 5 City of Clearwater Community Redevelopment Agency Meeting Minutes February 13, 2023 work completed this far. Trustee Teixeira moved to amend the Loan to Grant Agreement with 949 Cleveland Street, LLC for the property at 1011 Cleveland Street, to extend the agreement to December 31, 2023, for building improvements to implement the CRA Food and Drink Grant Program and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4.3 Amend a Loan to Grant Agreement with 949 Cleveland Street, LLC for the properties at 1017, 1023 and 1029 Cleveland Street, to extend the agreement to September 1, 2023, for building improvements to implement the CRA Food and Drink Grant Program and authorize the appropriate officials to execute same. At the October 29, 2018 Community Redevelopment Agency (CRA) meeting, the CRA Trustees approved a time limited, grant program for property owners to support the establishment of new food and drink businesses that are open on nights and weekends in the Downtown Core and Prospect Lake districts in the CRA area. Under this program, property owners must commit, at a minimum, to matching the CRA's grant funding, dollar for dollar, for building improvements that will be maintained for a minimum of five years. The owner must also maintain a lease with a business that serves food and/or drinks on nights and 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. Page 6 City of Clearwater Community Redevelopment Agency Meeting Minutes February 13, 2023 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 owner's full application and financial documents to secure the loan to grant agreement over a five-year period. Those documents will remain unchanged. APPROPRIATION CODE AND AMOUNT: Funds for this grant are available in 3887552-R2003 Economic Development-City Trustee Allbritton moved to amend 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 December 31, 2023, for building improvements to implement the CRA Food and Drink Grant Program and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 5. Director's Report CRA Executive Director Jaye Matthews reviewed recent and upcoming events. She said information shared with the Trustees during the last meeting related to active grants was not accurate. Staff is currently reviewing and auditing grant files, an update will be provided at the April meeting. In response to questions, Dr. Matthews said staff is working on improving communications with businesses that are opening. Mr. Smith said the Captain's Lounge has a soft opening planned this Friday, the business is working with Amplify Clearwater for the grand opening on the 23rd. The Market Marie's agreement with the Downtown Development Board ends in April, another grant request would be needed in order to extend the market. He said businesses do not have to join Amplify to schedule a grand opening; there may be a required fee to coordinate a ribbon-cutting ceremony. Dr. Matthews said a list of the vacant properties is available; staff is augmenting the list with additional information. In conducting the vacancy assessment, several business owners have raised concerns with their landlord. She said staff is looking at how the CRA could facilitate with business expansion opportunities. She said she toured the East Gateway with the citizen who has raised concerns with overflowing trash Page 7 City of Clearwater Community Redevelopment Agency 6. Adjourn Attest Meeting Minutes February 13, 2023 receptacles; no overflowing trash was observed but several trash bins were missing lids. The pictures being emailed are old. She said many of the bins are located near the street and unable to be enclosed. The meeting adjourned at 3:20 p.m. 41" -- Chair ��,,,,�►►+++++,,,,,, Community Redevelopment Agency \\����.�� -OPAL iii/ City Clerk °-<= Page 8 City of Clearwater