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10/16/2023 Community Redevelopment Agency Meeting Minutes October 16, 2023 City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 e P y 1 4 Meeting Minutes Monday, October 16, 2023 1 :00 PM Pinellas County, 333 Chestnut Street, Palm Room, Clearwater, FL 33756 Community Redevelopment Agency Page 1 City of Clearwater Community Redevelopment Agency Meeting Minutes October 16, 2023 Roll Call Present 5 - Chair Brian Aungst Sr., Trustee Mark Bunker, Trustee David Allbritton, Trustee Kathleen Beckman, and Trustee Lina Teixeira Also Present: Jennifer Poirrier— City Manager, Michael Delk—Assistant City Manager, Daniel Slaughter—Assistant City Manager, David Margolis — City Attorney, Rosemarie Call — City Clerk, Nicole Sprague — Deputy City Clerk, and Anne Lopez— Interim CRA Director To provide continuity for research, items are listed in agenda order although not necessarily discussed in that order. 1. Call to Order— Chair Aungst, Sr. The meeting was called to order at 1:00 p.m. 2. Approval of Minutes 2.1 Approve the minutes of the September 18, 2023 CRA Meeting as submitted in written summation by the City Clerk. Trustee Teixeira moved to approve the minutes of the September 18, 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 Eliseo Santana thanked those who attended the Hispanic Heritage Celebration yesterday. He said grass roots communication efforts led to the most active participation of the Hispanic community. Marilyn Turman thanked the City for supporting North Greenwood and reviewed event details for this year's Family Night. She encouraged all to attend. She said last year the event welcomed almost 3,000 attendees. Dina Ramos thanked the City for supporting the Hispanic Heritage Celebration and encouraged staff to consider the community and participants when planning events. She said the Hispanic Farmers Market focuses on family and youth. Page 2 City of Clearwater Community Redevelopment Agency Meeting Minutes October 16, 2023 Angel Santiago thanked the City for holding the Hispanic Heritage Celebration yesterday and encouraged the City to continue working with Latinos. 4. New Business Items 4.1 Approve the Contract for Purchase of Real Property by the Community Redevelopment Agency of the City of Clearwater of certain real property owned by Anna P. Birt, with a purchase price of$350,000 and total expenditures not to exceed $402,000; and authorize appropriate officials to execute same, togetherwith all other instruments required to affect closing. The subject property is addressed at 1105 Carlton Street and is located on the southeast corner of North Martin Luther King Jr. Avenue (N MLK) and Carlton Street within the North Greenwood Community Redevelopment Area (CRA). The property contains two contiguous parcels totaling approximately 8,054 square feet or 0.185 acres. Property identification numbers are 10-29-15-33534-003-0150 and 10-29-15-33534-003-0160. One of the parcels is a 45' X 85'; vacant lot fronting N MLK. The other parcel is 45.5' X 85' and contains two structures. Staff is recommending demolition of the vacant single-family home on the site. The two-story structure on the corner is a mixed-use building. The ground floor was formerly used as a restaurant and the second floor is residential. Post acquisition, staff is recommending rehabilitation of the residential portion of this building utilizing available housing funds to be determined at a later date (State Housing Initiatives Partnership Program or HOME Investment Partnership Program funding). Staff is also recommending rehabilitation of the restaurant using grant funding from the Community Development Block Grant program. Two independent appraisals were performed on the property. James Millspaugh and Associates, Inc. valued the property at $224,000 with a valuation date of June 9, 2022. Tobias Realty Advisors, LLC valued the property at $297,000 as of February 8, 2023. After the second appraisal was completed, staff observed additional transactions that occurred that are comparable sales to the subject property. To obtain the most recent property valuation, staff conducted an appraisal using the more recent sales data. Staff valued the property at$323,400 as of August 15, 2023. Staff is proposing to utilize remaining American Rescue Plan Act funds that have been dedicated to the CRA to fund this acquisition. The purchase price represents paying a premium for the property. This was a lengthy negotiation and staff is confident that terms presented on the purchase Page 3 City of Clearwater Community Redevelopment Agency Meeting Minutes October 16, 2023 contract are the most favorable terms for the CRA that could be negotiated. Acquisition Costs: Purchase Price $350,000 Survey $3,000 Environmental assessment $3,500 Building Conditions Assessment $25,000 Demolition $20,000 Closing Costs $1,000 TOTAL $402,500 With a questionable commercial market along N MLK, staff does not anticipate a direct return on investment with this transaction. Staff recommends this acquisition and rehabilitation project is considered a loss leader intended to stimulate additional private development along the N MLK commercial corridor. Staff intends to publish a request for proposals to sell the property to a non-profit organization familiar with the North Greenwood community and the North Greenwood Community Redevelopment Plan (Plan). A revenue and expense analysis will be conducted to determine the optimum sales price. Due to current commercial market conditions along N MLK, it is likely that the sales price, when selling to the successful respondent to the RFP, will be less than the purchase price for the CRA's acquisition. This property is currently commercial taxable within the CRA. If the CRA trustees approve this purchase acquisition, the CRA and City will no longer receive tax revenue unless and until the property reverts to private, taxable ownership. This acquisition is a unique opportunity as this property is adjacent to city-owned property immediately to the south. Acquisition of the subject property would result in full city and CRA ownership fronting N MLK between Tangerine Street and Carlton Street. Acquisition of this property presents a strategic development opportunity to achieve the following objectives set forth in the Plan: • Housing affordability - The residential portion of the building will be rehabilitated and will be rented to low-income tenants. • Vacant land redevelopment - a portion of the property is vacant land along the N MLK commercial corridor that can be added to additional city-owned land to increase the site's redevelopment options. • Building community capacity - Staff will seek a non-profit partner currently working within the CRA. The Plan also provides a recommendation to "support private infill residential and commercial redevelopment on vacant and underutilized properties." Further, this project will implement a policy in the Plan to reduce poverty by funding improvements to a commercial building, establish new business, and Page 4 City of Clearwater Community Redevelopment Agency Meeting Minutes October 16, 2023 reduce blight in the N MLK commercial corridor. APPROPRIATION CODE AND AMOUNT: Funds are available in special program G2210, ARPA North Greenwood CRA, to fund this purchase. Discussion ensued with comments made that the project will be a kickstarter for the block. A concern was expressed that the renovations needed are extensive and expensive. In response to questions, Economic Development and Housing Assistant Director Chuck Lane said the floors are soft and have holes, making the building unsafe to reside. Staff has not been asked for relocation assistance for the current tenants. He said staff can share information with non-profit partners to see if there is availability. Clearwater Urban Leadership Coalition Executive Director Gloria Campbell said the Coalition was working with another organization to purchase the property over 2.5 years ago. She said there is a plan for the property, as the Coalition believes it will jumpstart the area. She said there is no development on the corner and the community is growing impatient and want to see progress. She said this is the best opportunity for the community to see something is happening. Ms. Campbell said the Coalition has engaged several partners, such as architects, developers, and consultants, to advise what can be done on the site and the associated timeline. The easiest option is demolishing the building and redevelop the entire block at the same time but she would like to see if the building, which has historical significance, could be preserved. In response to questions, Ms. Campbell said renovation costs have not been determined yet. Mr. Lane said the City will have an engineer review the structure during the due diligence period to determine the renovation costs. He said the demolition will occur on the single-family home portion. Mr. Lane said the due diligence period will provide the City an opportunity to walk away if the analysis shows it will not work for the city. Ms. Campbell said it is the oldest building in North Greenwood. She said every appraiser who looked at the building said the structure is sound, the interior is the issue. She said if housing cannot be retained above due to renovation costs, the Coalition is okay with stepping away from the idea. Trustee Beckman moved to approve the Contract for Purchase of Real Property by the Community Redevelopment Agency of the City of Clearwater of certain real property owned by Anna P. Birt, with a purchase price of $350,000 and total expenditures not to exceed $402,000; and authorize appropriate officials to execute same, Page 5 City of Clearwater Community Redevelopment Agency Meeting Minutes October 16, 2023 together with all other instruments required to affect closing. The motion was duly seconded and carried unanimously. 5. Director's Report Interim CRA Executive Director Anne Lopez said four new Business Renovation Grants were approved; three are located in the Downtown Gateway and one in Downtown. She said there are two additional grants pending review. Three Restaurant Operations Grant were approved; two in the Gateway and one in Downtown. She said there is one pending application. One Economic Recovery Grant has been approved and one being reviewed. She said staff has met with Prospera and are working to connect the organization with the Hispanic/Latino businesses in the Downtown Gateway. Ms. Lopez said all 25 ARPA grants have been awarded. She said the application for the North Greenwood Citizen Advocacy Committee has been posted online. It was suggested that staff provide updates on crime, homeless action and transports, trail activation, housing (i.e., container homes, tiny homes, planned construction, etc.), new businesses, and closed businesses. Ms. Lopez said staff provided an update on the Mercado at the last meeting. Sod was laid last Friday. She said she will discuss the status of the new bid request with Finance and verify if trees will be planted. 6. Adjourn The adjourned at 1:39 p.m. Attest LW/14 2 0 City Clerk City of Clearwater Community Redevelopment Agency Page 6