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04/15/2024Monday, April 15, 2024 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 April 15, 2024Community Redevelopment Agency Meeting Agenda 1. Call To Order 2. Approval of Minutes 2.1 Approve the minutes of the March 18, 2024 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 July 15, 2024, for building improvements to implement the CRA Food and Drink Grant Program and authorize the appropriate officials to execute same. 5. Director's Report 6. Adjourn Page 2 City of Clearwater Printed on 4/10/2024 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0237 Agenda Date: 4/15/2024 Status: Agenda ReadyVersion: 1 File Type: MinutesIn Control: Community Redevelopment Agency Agenda Number: 2.1 SUBJECT/RECOMMENDATION: Approve the minutes of the March 18, 2024 CRA Meeting as submitted in written summation by the City Clerk. Page 1 City of Clearwater Printed on 4/10/2024 Community Redevelopment Agency Meeting Minutes March 18, 2024 Page 1 City of Clearwater City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 Meeting Minutes Monday, March 18, 2024 1:00 PM Main Library - Council Chambers Community Redevelopment Agency Draft Community Redevelopment Agency Meeting Minutes March 18, 2024 Page 2 City of Clearwater Roll Call Present 4 - Vice Chair Mark Bunker, Trustee David Allbritton, Trustee Kathleen Beckman, and Trustee Lina Teixeira Absent 1 - Chair Brian Aungst Sr. 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 Jesus Niño – CRA Executive Director To provide continuity for research, items are listed in agenda order although not necessarily discussed in that order. Unapproved 1. Call to Order – Vice Chair Bunker The meeting was called to order at 1:00 p.m. 2. Approval of Minutes 2.1 Approve the minutes of the February 12, 2024 CRA meeting as submitted in written summation by the City Clerk. Trustee Beckman moved to approve the minutes of the February 12, 2024 CRA meeting as submitted in written summation by the City Clerk. The motion was duly seconded and carried unanimously. 3. Citizens to be Heard Regarding Items Not on the Agenda – None. 4. New Business Items 4.1 Approve a Declaration of Restricted Covenant for property located at 1277 Grove Street, Clearwater, FL 33755, and authorize appropriate officials to execute same. At the February 12, 2024, Community Redevelopment Agency (CRA) meeting approved a fourth amendment to the Agreement for Development and Purchase and Sale to Archway Clearwater Gardens, LLC. The Amendment requires the execution of a declaration of a restrictive covenant, instead of a perpetual easement, restricting the use of the community garden site to use as a community garden for the benefit, use, and enjoyment of the public. This change eliminates the need for the City to procure, manage, or contract with future operators and users of the community garden. Archway will take on this responsibility. Draft Community Redevelopment Agency Meeting Minutes March 18, 2024 Page 3 City of Clearwater The Property shall be used solely as a community garden for a period of 30 years commencing on the Effective Date of this Declaration and for no other use. For purposes of this Declaration, community garden shall mean an activity on the property where more than one person grows produce and/or horticultural plants for their consumption and enjoyment, for the consumption and enjoyment of friends and relatives, and/or donation to a not-for-profit organization, generally on a not-for-profit basis. Trustee Teixeira moved to approve a Declaration of Restricted Covenant for property located at 1277 Grove Street, Clearwater, FL 33755, and authorize appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4.2 Approve the Community Redevelopment Agency (CRA) companion grant for the Gotham residential project on the Bluff and reallocate $750,000 from the vacancy reduction grant program. On February 1, 2024, the City Council approved a substantive amendment to the City’s purchase and sale agreement for the old City Hall site. As it pertains to the CRA, the amendment approved on February 1st creates a new condition precedent to closing for the Buyers which entitles the Buyers to a CRA grant in the amount of $2,250,000 upon Substantial Completion of the project. Because these funds are being allocated from the CRA, only the CRA can give final approval to that portion of the agreement. As provided in the amendment approved on February 1st, if the Buyers successfully close on the real estate by March 1, 2026, the CRA grant in the amount of $2,250,000 will be disbursed upon commencement of construction, instead of being deferred until Substantial Completion. In addition, if the Buyers successfully close on the real estate by March 1, 2026, the CRA shall disburse an additional $1,000,000 early closing incentive grant upon commencement of construction. This item seeks approval to allocate and set aside $3,250,000 in CRA funds for this grant, but no portion of these funds will be disbursed to the Buyers unless and until the conditions in this item and the Fourth Amendment to the Contract for Purchase of Real Property, approved the City Council on February 1, 2024, are met. To fund the $3,250,000, the staff is requesting approval to transfer $750,000 from the vacancy reduction grant program. To date, none of this allocation has been utilized; nor are there any current applications in progress. The remaining $2,500,000 is being funded administratively through the use of Draft Community Redevelopment Agency Meeting Minutes March 18, 2024 Page 4 City of Clearwater City TIF funds already available in the Housing Project of the CRA Budget. APPROPRIATION CODE AND AMOUNT: A mid-year budget amendment will provide a transfer of $2,500,000 from capital improvement project R2009- Housing -City, to capital improvement project R2003, Economic Development-City, to fund this commitment. In response to questions, CRA Executive Director Jesus Niño said there are funds remaining in the Vacancy Reduction Grant Program; staff continues to market the grant program. Trustee Allbritton moved to approve the Community Redevelopment Agency (CRA) companion grant for the Gotham residential project on the Bluff and reallocate $750,000 from the vacancy reduction grant program. The motion was duly seconded and carried unanimously. 4.3 Approve the North Greenwood Community Redevelopment Citizens Advisory Committee Policy. On May 23, 2023, the North Greenwood Community Redevelopment Area (NGCRA) was formally established as a community redevelopment area under the purview of the City of Clearwater Community Redevelopment Agency (CRA). Originally, the NGCRA was proposed by the Clearwater Urban Leadership Coalition in 2019. The City of Clearwater and the CRA then moved forward with the approval of a required Finding of Necessity Study, identifying, and ultimately establishing the NGCRA boundaries (840.88 acres or 1.31 square miles), and the creation of the NGCRA Plan. The NGCRA Plan is the guiding document for implementation strategies and policies to eliminate slum and blight in the NGCRA. To ensure the Plan is implemented in continuous collaboration with the community, the Plan, sections 5.4 and 5.5, states the city will establish a Citizens Advisory Committee (CAC), a “recommending body,” comprised of residents, business owners, property owners, and non-profit organizations located in the plan area. Once established, the CAC will aid staff and the CRA Trustees to administer the implementation of the NGCRA Plan. Prior to CRA staff conducting a robust CAC member recruiting campaign, CAC policies and guidelines must first be in place. Staff is requesting approval of the attached “North Greenwood Community Redevelopment Area Citizens Advisory Committee Policy.” The purpose of the Policy is to establish uniform guidelines under which the CAC for the NGCRA will be organized, comprised, and Draft Community Redevelopment Agency Meeting Minutes March 18, 2024 Page 5 City of Clearwater administered. It also provides guidelines the CAC will follow unless relevant circumstances justify an alternative approach acceptable to and approved by the CRA Trustees. The CAC will consist of five members, with three members appointed by the City of Clearwater City Council (City Council) and the remaining two members appointed by the Pinellas County Board of County Commissioners (Section 5.5, NGCRA). CAC members will serve without compensation. In response to questions, Mr. Niño said staff has reached out to Pinellas County to discuss how they wish to proceed with appointing their two members. For the city appointees, staff will collect the applications and present those that meet the criteria to the Trustees for appointment. Trustee Beckman moved to approve the North Greenwood Community Redevelopment Citizens Advisory Committee Policy. The motion was duly seconded and carried unanimously. 5. Director's Report Mr. Niño said now that the North Greenwood CAC policy was approved, staff will start a recruitment campaign that includes community outreach materials. Outreach efforts will include flyers, videos, and presentations at various public meetings. In response to a question, Mr. Niño said staff is seeking an Attorney General opinion as he does not believe trust funds from one CRA can be used for another CRA. 6. Adjourn The meeting adjourned at 1:21 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#24-0410 Agenda Date: 4/15/2024 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 July 15, 2024, 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 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 of the CRA. On February 18, 2020, the CRA trustees approved the applicant’s proposal for a loan to grant in the amount of $187,632.50 for 949 Cleveland Street, 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. On January 19, 2021, the CRA trustees approved an amendment to the grant agreement for an extension to March 1, 2022, due to construction delays and the COVID-19 Pandemic. 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. On February 13, 2023, the CRA Trustees approved a third extension to December 31, 2023, due to requirements with replacing the roof including structural engineered drawings, permitting, procurement, and a subsequent installation. On December 4th, 2023, the CRA Trustees approved a fourth extension to January 31, 2024 due to unexpected conditions, specifically the necessity for a roof replacement before the build-out work can begin. There was also a complication with the previous prospective tenant for the café space who withdrew their lease. The applicant has since acquired a new leaseholder. The applicant is requesting a fifth extension; the previous request for an extension was motivated by the necessity to provide the applicant’s newest tenant with the opportunity to design the space according to their vision and needs. However, during the work, the applicant encountered unexpected challenges regarding the electrical infrastructure. Upon further examination, it has come to the applicant’s attention that the electrical feed to the space is undersized, necessitating a complete update to the electrical feed to the main breaker to support the required power for the establishment. Addressing this issue has prolonged the applicant's timeline for completion, and they are currently working diligently to rectify the situation. The applicant has been working with the city building department throughout this process, and they are confident that they will obtain a permanent Certificate of Occupancy by July 15, 2024. In the interim, they are actively pursuing a Temporary Certificate of Occupancy, which will allow them to furnish the space and commence staff training while the applicant finalizes the permanent electrical upgrades. Staff recommends amending this grant for three months to allow for the final completion date to be July 15th, 2024. Page 1 City of Clearwater Printed on 4/10/2024 File Number: ID#24-0410 APPROPRIATION CODE AND AMOUNT: Funding for this grant has been encumbered in 3887552-R2003 Economic Development- City STRATEGIC PRIORITY: 2.1 Strengthen public-private initiatives that attract, develop, and retain diversified business sectors. 2.2 Cultivate a business climate that welcomes entrepreneurship, inspires local investment, supports Eco-friendly enterprises, and encourages high-quality and high-quality job growth. Page 2 City of Clearwater Printed on 4/10/2024 CLEVELAND STREET MARKET Table of Contents: Page 1: Project Summary Page 2: Progress Photos I am writing to formally request an extension for our ongoing project, the Cleveland Street Market Cafe. Our previous request for an extension was motivated by the necessity to provide our newest tenant with the opportunity to design the space according to their vision and needs. However, during the course of our work, we have encountered unexpected challenges regarding the electrical infrastructure. Upon further examination, it has come to our attention that the electrical feed to the space is undersized, necessitating a complete update to the electrical feed to the main breaker to support the required power for the establishment. Addressing this issue has prolonged our timeline for completion, and we are currently working diligently to rectify the situation. Despite these setbacks, I want to assure you of our commitment to completing the project in a timely manner. We have maintained a positive and constructive relationship with the city building department throughout this process, and we are confident that we will obtain a permanent Certificate of Occupancy by June 1st, 2024. In the interim, we are actively pursuing a Temporary Certificate of Occupancy, which will allow us to furnish the space and commence staff training while we finalize the permanent electrical upgrades. We are sincerely grateful for the support and understanding that the city has extended to us thus far. We appreciate your patience and comprehension regarding the challenges we have encountered. Our team is dedicated to presenting the Cleveland Street Market Cafe as a vibrant and attractive addition to the City of Clearwater at the earliest opportunity. Thank you for your attention to this matter. Should you require any further information or documentation, please do not hesitate to contact me directly at Jgonzalez@nmresidential.com. We look forward to your favorable consideration of our request. 485 South Keller Road, Suite 520 | Maitland FL 32751 | (407) 872-1900 November 2023: Project Status Cleveland Street. Market Café: 485 South Keller Road, Suite 520 | Maitland FL 32751 | (407) 872-1 Overview Café Progress as of March 2024 FIFTH 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 FIFTH AMENDMENT TO THE FOOD AND DRINK PROPERTY OWNER GRANT PROGRAM LOAN-TO-GRANT AGREEMENT, entered into this ____day of __________, 2024, 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 19, 2021; and WHEREAS, the CRA and the Borrower amended certain provisions of the Agreement on February 14, 2022; and WHEREAS, the CRA and the Borrower amended certain provisions of the Agreement on February 13, 2023; and WHEREAS, the CRA and the Borrower amended certain provisions of the Agreement on December 4, 2023; 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 toward 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 July 15th, 2024, 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 July 15, 2024. 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: Bruce Rector Chairperson Approved as to form: Attest: ________________________ _______________________________ David Margolis 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