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06/17/2024Monday, June 17, 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 June 17, 2024Community Redevelopment Agency Meeting Agenda 1. Call To Order 2. Approval of Minutes 2.1 ID#24-0244 Approve the minutes of the April 15, 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 ID#24-0691 Approve the 2023 Annual Financial Statement. 4.2 ID#24-0690 Presentation on Art Oasis Mural Fest 2024. 4.3 ID#24-0692 Approve the Community Redevelopment Agency (CRA) Business Spotlight program that will provide exposure to businesses within the Downtown Clearwater CRA and authorize the appropriate officials to execute same. 4.4 ID#24-0689 Provide direction on Cleveland Street Shipping Container/Mobile Vendors. 5. Director's Report 5.1 ID#24-0703 Directors Report - June 2024 6. Adjourn Page 2 City of Clearwater Printed on 8/23/2024 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0244 Agenda Date: 6/17/2024 Status: PassedVersion: 1 File Type: MinutesIn Control: Community Redevelopment Agency Agenda Number: 2.1 SUBJECT/RECOMMENDATION: Approve the minutes of the April 15, 2024 CRA Meeting as submitted in written summation by the City Clerk. Page 1 City of Clearwater Printed on 8/23/2024 Community Redevelopment Agency Meeting Minutes April 15, 2024 Page 1 City of Clearwater City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 Meeting Minutes Monday, April 15, 2024 1:00 PM Main Library - Council Chambers Community Redevelopment Agency Draft Community Redevelopment Agency Meeting Minutes April 15, 2024 Page 2 City of Clearwater Roll Call Present 5 - Chair Bruce Rector, Trustee Ryan Cotton, Trustee Michael ManNiño, Trustee David Allbritton, 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 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 – Chair Rector The meeting was called to order at 1:00 p.m. 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. Trustee Cotton moved to approve the minutes of the March 18, 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 Kathleen Beckman congratulated the newly elected Trustees, encouraged the City to include a line item in the general fund for North Greenwood CRA operations, and suggested the City post a CRA dashboard online as soon as possible. 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. 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 Draft Community Redevelopment Agency Meeting Minutes April 15, 2024 Page 3 City of Clearwater 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. APPROPRIATION CODE AND AMOUNT: Funding for this grant has been encumbered in 3887552-R2003 Economic Draft Community Redevelopment Agency Meeting Minutes April 15, 2024 Page 4 City of Clearwater Development- City In response to a question, CRA Executive Director Jesus Niño said an extension was provided through July in case the improvements were not completed by June. Trustee Teixeira 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 July 15, 2024, 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 Mr. Niño introduced the CRA staff and said starting next month, staff will include updates for the North Greenwood CRA. Staff is working on a new webpage design that will include a dashboard. He said staff has developed a communications plan and a flyer regarding the North Greenwood Citizens Advisory Committee. Mr. Niño reviewed recent and upcoming events. In response to a question, Senior CRA Manager Anne Lopez said she met with the new owners of 530 Cleveland Street last week. She said the owners own Grahame's Gourmet Cafe. Ms. Lopez said they discussed the repairs needed in the space and the applicable CRA grant programs currently available. 6. Adjourn The meeting adjourned at 1:14 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#24-0691 Agenda Date: 6/17/2024 Status: PassedVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.1 SUBJECT/RECOMMENDATION: Approve the 2023 Annual Financial Statement. SUMMARY: Presentation of the fiscal year 2023 Annual Financial Report by external auditors. Page 1 City of Clearwater Printed on 8/23/2024 Clearwater Community Redevelopment Agency (A Component Unit of the City of Clearwater, Florida) Annual Financial Report Year Ended September 30, 2023 CLEARWATER COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Clearwater, Florida) ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Brian J. Aungst Sr. Chair David Allbritton Trustee Kathleen Beckman Trustee Mark Bunker Trustee Lina Teixeira Trustee Anne Lopez Interim CRA Executive Director PREPARED BY: CITY OF CLEARWATER FINANCE DEPARTMENT CLEARWATER COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Clearwater, Florida) ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2023 TABLE OF CONTENTS Independent Auditor’s Report 1 - 3 Management’s Discussion and Analysis 4 - 12 Basic Financial Statements Government-Wide Financial Statements: Statement of Net Position - Governmental Activities 13 Statement of Activities - Governmental Activities 14 Fund Financial Statements: Balance Sheet – Governmental Funds 15 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 16 Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds 17 Reconciliation of the Change in Fund Balance of the Governmental Funds to the Statement of Activities 18 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund 19 Notes to the Financial Statements 20 - 27 Compliance Section Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 28 - 29 Management Letter 30 - 32 Independent Accountant’s Report on Compliance with Section 218.415, Florida Statutes 33 Independent Accountant’s Report on Compliance with Redevelopment Trust Fund 34 This Page Intentionally Left Blank INDEPENDENT AUDITOR’S REPORT To the Honorable Chair and Trustees Clearwater Community Redevelopment Agency Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of the governmental activities and each major fund of the Clearwater Community Redevelopment Agency (“Agency”) as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the Agency’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Clearwater Community Redevelopment Agency, as of September 30, 2023, and the respective changes in financial position and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Agency and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Agency’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 1 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: x Exercise professional judgment and maintain professional skepticism throughout the audit. x Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. x Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Agency’s internal control. Accordingly, no such opinion is expressed. x Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Agency’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. 2 We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 11, 1111, on our consideration of the Agency’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Agency’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Agency’s internal control over financial reporting and compliance. CARR, RIGGS 1 I1GRAM, 11C Clearwater, 1lorida April 11, 1111 3 4 Management’s Discussion and Analysis As management of the Clearwater Community Redevelopment Agency (CRA), we offer readers of the CRA’s financial statements this narrative overview and analysis of the financial activities of the CRA for the fiscal year ended September 30, 2023, with comparisons to prior year performance. We encourage readers to consider the information presented here in conjunction with the statements and related notes contained in the Basic Financial Statements. Financial Highlights The assets of the Clearwater Community Redevelopment Agency exceeded its liabilities as of September 30, 2023, by $21,588,241 (net position). Of this amount, $8,309,481 is invested in capital assets and $13,278,760 is restricted for community redevelopment activities. The CRA’s total net position increased by $3,810,563 during the fiscal year ended September 30, 2023, versus an increase of $2,224,348 in fiscal 2022. Program expenses decreased $734,042 from the prior year, while program revenues decreased $428,959 and general revenues increased $1,281,132, resulting in an increase in the change in net position of $1,586,215. General revenues increased $1,281,132 due to an increase in investment earnings due to rising interest rates in addition to an increase in the CRA’s cash balance of $1.8 million. Overview of Financial Statements This discussion and analysis are intended to serve as an introduction to the Clearwater Community Redevelopment Agency’s basic financial statements. The CRA’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the Clearwater Community Redevelopment Agency’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the CRA’s assets and liabilities, with the differences between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the CRA is improving or deteriorating. The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes). 5 Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Clearwater Community Redevelopment Agency, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. CRA activities are accounted for in a General Fund and a Capital Projects Fund. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Clearwater Community Redevelopment Agency adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this requirement. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. 6 Government-Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the Clearwater Community Redevelopment Agency, assets exceeded liabilities by $21,588,241 at the close of the most recent fiscal year. The following table provides a summary of the CRA’s net position: Clearwater Community Redevelopment Agency Comparative Statement of Net Position September 30, 2022 and 2023 Governmental Activities 2023 2022 ASSETS Current and other assets $ 13,733,301 $ 11,878,123 Capital assets(net) 8,309,481 6,292,806 Total assets 22,042,782 18,170,929 LIABILITIES Current and other liabilities 454,541 393,251 Total liabilities 454,541 393,251 NET POSITION Net investment in capital assets 8,309,481 6,292,806 Restricted 13,278,760 11,484,872 Total net position $ 21,588,241 $ 17,777,678 7 The following table provides a summary of the Clearwater Redevelopment Agency’s changes in net position for the years ended September 30, 2023 and 2022: Clearwater Community Redevelopment Agency Changes in Net Position September 30, 2022 and 2023 Governmental Activities 2023 2022 REVENUES Program revenues: Charges for Services $ 81,504 $ 78,748 Operating Grants and Contributions 5,448,958 4,952,878 Capital Grants and Contributions - 927,795 General revenues: Investment earnings (loss) 220,443 (1,060,689) Total revenues 5,750,905 4,898,732 EXPENSES Governmental activities: Economic Environment 1,940,342 2,674,384 Total expenses 1,940,342 2,674,384 Change in net position 3,810,563 2,224,348 Total net position - beginning 17,777,678 15,553,330 Total net position - ending $ 21,588,241 $ 17,777,678 Governmental Activities The increase in governmental activities net position in fiscal 2023 totaled $3,810,563 as compared to an increase in net position of $2,224,348 in fiscal 2022. Key elements of this change are as follows:  Total expenses decreased $734,042 (27.4%). General fund expenses increased $74,362 (7.1%), primarily due an increase of $34 thousand in the payment to the Clearwater Downtown Development Board to return tax increment funding due to increased property values; an increase of $138 thousand in the payment to the City of Clearwater for staffing and administrative services provided by the City to the CRA; offset by a decrease of $87 thousand in professional and contractual services due to reduced spending on art exhibits, Cleveland Street landscaping, website maintenance and seasonal lighting; and a decrease of $10 thousand in advertising for exhibits and events. Capital projects fund expenses decreased $808,404 (48.3%), primarily due a decrease in spend from fiscal 2022 for construction costs to prepare the Main Library for art exhibits ($81 thousand), installation of additional security cameras for art exhibits at the Main Library ($14 thousand), furniture for Station Square Park ($40 thousand), reduction in loan to grant agreements for downtown businesses ($296 thousand), and a capital transfer to the City of Clearwater for the Gateway Mercado project ($428 thousand); offset by an increase to the City of Clearwater for 8 community policing services in the CRA area ($54 thousand). Depreciation expense was the same as the prior year because the CRA has only one depreciable asset.  Total program revenues decreased $428,959 (7.2%), due to an increase in tax increment revenues in the amount of $496,080 received from Pinellas County, the City of Clearwater and the Clearwater Downtown Development Board as a result of increased property tax values in the CRA district, as well as an increase of $2,756 (3.5%) in the payment received from the Clearwater Downtown Development Board (DDB) for administrative services provided by CRA staff, offset by a decrease in capital grants and contributions of $927,795 due to a one-time contribution from the City of Clearwater for the Gateway Mercado project in fiscal 2022.  Total general revenues increased $1,281,132 (120.8%) due to an increase in investment earnings resulting from rising interest rates in addition to an increase in the CRA’s cash balance of $1.8 million. Expenses and Program Revenues - Governmental Activities Program Net (Expense) Functions/Programs Expenses % of Total Revenues % of Total Revenue Economic Environment $ 1,940,342 100.00% $ 5,530,462 100.00% $ 3,590,120 Total $ 1,940,342 100.00% $ 5,530,462 100.00% $ 3,590,120 $ 1,940,342 $ 5,530,462 $ - $ 1,000,000 $ 2,000,000 $ 3,000,000 $ 4,000,000 $ 5,000,000 $ 6,000,000 Economic Environment Expenses and Program Revenues - Governmental-Type Activities Expenses Revenues 9 Revenues by Source - Governmental Activities Revenues Source Revenues % of Total Charges for Services $ 81,504 1.42% Operating Grants and Contributions 5,448,958 94.75% Investment Earnings (Loss) 220,443 3.83% Total $ 5,750,905 100.00% Financial Analysis of the Clearwater Community Redevelopment Agency’s Funds As noted earlier, the Clearwater Community Redevelopment Agency uses fund accounting to ensure and demonstrate compliance with finance related requirements. 1.42% 94.75% 3.83% Revenues by Source - Governmental Activities Charges for Services Operating Grants and Contributions Investment Earnings (Loss) 10 Governmental Funds The focus of the Clearwater Community Redevelopment Agency’s general fund is to provide information on near term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the CRA’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the CRA’s general fund reported an ending fund balance of $3,500, a decrease of $2,713 for fiscal 2023 in comparison with a decrease of $6,687 for the prior year. Revenues increased $1,779,968 due to an increase in investment earnings of $1,281,132 due to rising interest rates in addition to an increase in the CRA’s cash balance of $1.8 million, an increase of $496,080 (10.0%) in tax increment revenue received from Pinellas County, the City of Clearwater and the Clearwater Downtown Development Board as a result of increased property tax values in the CRA district, as well as an increase of $2,756 (3.5%) in the payment received from the Clearwater Downtown Development Board (DDB) for administrative services provided by CRA staff. Current expenditures increased $74,362 primarily due an increase of $34 thousand in the payment to the Clearwater Downtown Development Board to return tax increment funding due to increased property values; an increase of $138 thousand in the payment to the City of Clearwater for staffing and administrative services provided by the City to the CRA; offset by a decrease of $87 thousand in professional and contractual services due to reduced spending on art exhibits, Cleveland Street landscaping, website maintenance and seasonal lighting; and a decrease of $10 thousand in advertising for exhibits and events. The fund balance of the capital projects fund increased from $11,478,659 to $13,275,260, an increase of $1,796,601 or 15.7% during the current fiscal year compared to an increase of $1,801,182 for fiscal 2022. Revenues decreased $927,795 due to a one-time contribution received from the City of Clearwater for the Gateway Mercado project in fiscal 2022. Current expenditures decreased $808,404 (48.3%), primarily due a decrease in spend from fiscal 2022 for construction costs to prepare the Main Library for art exhibits ($81 thousand), installation of additional security cameras for art exhibits at the Main Library ($14 thousand), furniture for Station Square Park ($40 thousand), reduction in loan to grant agreements for downtown businesses ($296 thousand), and a capital transfer to the City of Clearwater for the Gateway Mercado project ($428 thousand); offset by an increase to the City of Clearwater for community policing services in the CRA area ($54 thousand). Capital outlay increased $1,586,822 (350.5%) from the prior year, due primarily to acquisition of the Peace Memorial Church property at 107 South Osceola Avenue for the construction of a public parking garage, in addition to construction work at the Gateway Mercado project. The fund balances are restricted, and only available for spending to preserve and enhance the tax base per the redevelopment trust fund established pursuant to Chapter 163.387, Florida Statutes, City of Clearwater Ordinance 7214-03, and Pinellas County Ordinance 04-10. General Fund Budgetary Highlights Final budgeted General Fund revenues are $187,951 less than original budgeted revenues due to a decrease in tax increment financing from Pinellas County and the City of Clearwater in the amount of $222,970, and an increase in interest earnings of $35,019. Final budgeted General Fund expenditures are the same as original budgeted expenditures. Final budgeted General Fund transfers out are $187,951 less than original budgeted transfers out, reducing funding to capital projects to adjust for actual tax increment funding received from Pinellas County and the City of Clearwater. 11 Total actual expenditures were less than final budgeted expenditures in the amount of $229,480, primarily due to expenditures being less than anticipated for professional and contractual services ($155 thousand), payments to the City of Clearwater for administrative services provided by the City to the CRA ($33 thousand), and advertising and promotional costs ($19 thousand). Capital Assets Capital assets include land, buildings and building improvements, improvements other than buildings, and machinery and equipment. At September 30, 2023, the Clearwater Community Redevelopment Agency had investments in capital assets totaling $8,309,481 (net of accumulated depreciation). Clearwater Community Redevelopment Agency Comparative Statement of Capital Assets September 30, 2022 and 2023 Governmental Activities 2023 2022 Land $ 7,717,844 $ 5,840,550 Buildings 458,098 458,098 Construction in progress 223,250 60,964 8,399,192 6,359,612 Less: accumulated depreciation (89,711) (66,806) Capital assets, net $ 8,309,481 $ 6,292,806 Net capital assets for the CRA’s governmental activities increased from $6,292,806 to $8,309,481, reflecting an increase in land of $1,877,294 due primarily to the acquisition of the Peace Memorial Church property at 107 South Osceola Avenue for the construction of a public parking garage, and an increase in construction in progress of $162,286, offset by $22,905 in depreciation expense. Land and buildings consist of properties purchased by the CRA to be offered to for redevelopment opportunities intended to attract people to live, work and play downtown. Construction in progress consists of construction of the Gateway Mercado, a dynamic public plaza space at the intersection of Cleveland Street and Gulf to Bay Boulevard to be incorporated with the larger Cleveland Street Streetscape Phase III project, recently completed by the City of Clearwater. Long-Term Debt The Clearwater Community Redevelopment Agency’s tax increment revenues are not pledged externally to any lender for any indebtedness related to the CRA. 12 Economic Factors and Next Year’s Budgets and Rates Factors considered in preparing the Clearwater Community Redevelopment Agency’s budget for fiscal year 2024 included:  In the original CRA district, taxable county property values increased 6.6%, from $510.5 million to $544.4 million, while taxable municipal property values increased 6.6%, from $510.4 million to $544.2 million. In the expanded CRA district, taxable county property values increased 16.3%, from $165.5 million to $192.5 million, while taxable municipal property values increased 16.3%, from $165.2 million to $192.2 million. The difference between municipal and county taxable values is due to an additional homestead exemption offered by the City of Clearwater to low-income seniors. The tax increment received by the CRA from Pinellas County, the City of Clearwater and the Clearwater Downtown Development Board is based on the increase in taxable value in the CRA district over a base year, which is identified as 1981 for the original CRA district and 2004 for the expanded CRA district.  The CRA entered into an interlocal agreement with the Clearwater Downtown Development Board to provide personnel, administrative and management services for fiscal year 2024. This agreement has been in place since fiscal year 2000. It provides for the Clearwater Downtown Development Board to pay the CRA $84,357 for these services in fiscal year 2024, an increase of 3.5% over the previous year. It also provides for the CRA to return the tax increment payment received from the Clearwater Downtown Development Board pursuant to Florida Statue 163.387 in exchange for the performance of certain responsibilities and functions consistent with and in furtherance of the Downtown Redevelopment Plan.  The CRA entered into an interlocal agreement with the City of Clearwater to provide staffing and administrative services to the CRA for fiscal year 2024, and to provide for the reimbursement of certain expenses by the CRA to the City.  The CRA entered into an interlocal agreement with the City of Clearwater to provide funding in the amount of $257,643 for fiscal year 2024 to underwrite the cost of additional community policing services performed by the Clearwater Police Department in the Downtown Gateway District, Prospect Lake District, and the Downtown Core District encompassed by the CRA to specifically reduce drug dealing, prostitution and street crimes in the target area, and address quality of life issues. Request for Information This financial report is designed to provide a general overview of the Clearwater Community Redevelopment Agency’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Clearwater, Finance Department, 100 S. Myrtle Avenue, Clearwater, Florida 33756-5520. ASSETS Current assets: Cash and cash equivalents 13,692,956$ Receivables 40,345 Total current assets 13,733,301 Noncurrent assets: Land 7,717,844 Buildings, net 368,387 Construction in progress 223,250 Total noncurrent assets 8,309,481 Total assets 22,042,782 LIABILITIES Accounts payable and other current liabilities 81,101 Due to other governments 373,440 Total liabilities 454,541 NET POSITION Net investment in capital assets 8,309,481 Restricted for: Community Redevelopment 13,278,760 Total net position 21,588,241$ The notes to financial statements are an integral part of this statement. Clearwater Community Redevelopment Agency (A Component Unit of the City of Clearwater, Florida) Statement of Net Position September 30, 2023 13 Functions/Programs Expenses Charges for Services Operating Grants and Contributions Governmental Activities Governmental activities: Economic Environment 1,940,342$ 81,504$ 5,448,958$ 3,590,120$ Total governmental activities 1,940,342 81,504 5,448,958 3,590,120 Total primary government 1,940,342$ 81,504$ 5,448,958$ 3,590,120$ 220,443 220,443 3,810,563 17,777,678 21,588,241$ Net (Expense) Revenue and Changes in Net Position Program Revenues Primary Government General revenues: Investment earnings Total general revenues Change in net position Net position - beginning Net position - ending The notes to financial statements are an integral part of this statement. Clearwater Community Redevelopment Agency Statement of Activities For the Year Ended September 30, 2023 (A Component Unit of the City of Clearwater, Florida) 14 General Fund Capital Projects Fund Total Governmental Funds Assets Cash and cash equivalents 339,527$ 13,353,429$ 13,692,956$ Accrued interest 40,345 - 40,345 Total assets 379,872$ 13,353,429$ 13,733,301$ Liabilities Accounts and contracts payable 2,932$ 78,169$ 81,101$ Due to other governments 373,440 - 373,440 Total liabilities 376,372 78,169 454,541 Total liabilities and deferred inflows of resources 376,372 78,169 454,541 Fund Balance Restricted 3,500 13,275,260 13,278,760 Total fund balance 3,500 13,275,260 13,278,760 Total liabilities and fund balance 379,872$ 13,353,429$ 13,733,301$ The notes to financial statements are an integral part of this statement. Clearwater Community Redevelopment Agency (A Component Unit of the City of Clearwater, Florida) Balance Sheet Governmental Funds September 30, 2023 15 $ 13,278,760 Cost of capital assets $ 8,399,192 Less: Accumulated Depreciation (89,711) 8,309,481 $ 21,588,241 The notes to the financial statements are an integral part of this statement. Net position of governmental activities Amounts reported for governmental activities in the statement of net position are different because: Fund balances of governmental funds Capital assets used in governmental activities are not financial resources and are not reported in the funds. Reconciliation of the Balance Sheet to the Clearwater Community Redevelopment Agency Statement of Net Position For the Year Ended September 30, 2023 (A Component Unit of the City of Clearwater, Florida) 16 General Fund Capital Projects Fund Total Governmental Funds Revenues Intergovernmental revenue - tax increment 5,448,958$ -$ 5,448,958$ Charges for services 81,504 - 81,504 Investment earnings (loss): Interest 266,490 - 266,490 Net appreciation (depreciation) in fair value (46,047) - (46,047) Total investment earnings (loss) 220,443 - 220,443 Total revenues 5,750,905 - 5,750,905 Expenditures Current: Economic Environment 1,051,785 865,652 1,917,437 Capital outlay: Economic Environment - 2,039,580 2,039,580 Total expenditures 1,051,785 2,905,232 3,957,017 Excess (deficiency) of revenues over expenditures 4,699,120 (2,905,232) 1,793,888 Other Financing Sources (Uses) Transfers in - 4,701,833 4,701,833 Transfers out (4,701,833) - (4,701,833) Total other financing sources (uses) (4,701,833) 4,701,833 - Net change in fund balances (2,713) 1,796,601 1,793,888 Fund balances - beginning 6,213 11,478,659 11,484,872 Fund balances - ending 3,500$ 13,275,260$ 13,278,760$ The notes to financial statements are an integral part of this statement. Clearwater Community Redevelopment Agency (A Component Unit of the City of Clearwater, Florida) Governmental Funds For the Year Ended September 30, 2023 17 $ 1,793,888 Expenditures for capital assets $ 2,039,580 Less: Current year depreciation (22,905) 2,016,675 $ 3,810,563 The notes to the financial statements are an integral part of this statement. Clearwater Community Redevelopment Agency Fund Balances to the Statement of Activities Reconciliation of the Statement of Revenues, Expenditures and Changes in For the Year Ended September 30, 2023 Net change in fund balances - total government funds Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate these costs over the life of the assets. This is the amount by which capital outlays exceeded depreciation in the current period. Change in net position of governmental activities (A Component Unit of the City of Clearwater, FL) 18 Original Final Actual Variance with Final Budget REVENUES Intergovernmental revenue - tax increment 5,671,928$ 5,448,958$ 5,448,958$ -$ Charges for services 81,504 81,504 81,504 - Investment earnings (loss): Interest 55,000 90,019 266,490 176,471 Net appreciation (depreciation) in fair value - - (46,047) (46,047) Total investment earnings 55,000 90,019 220,443 130,424 Total revenues 5,808,432 5,620,481 5,750,905 130,424 EXPENDITURES Current: Economic Environment 1,281,265 1,281,265 1,051,785 229,480 Total current 1,281,265 1,281,265 1,051,785 229,480 Total expenditures 1,281,265 1,281,265 1,051,785 229,480 Excess (deficiency) of revenues over expenditures 4,527,167 4,339,216 4,699,120 (359,904) OTHER FINANCING SOURCES (USES) Transfers out (4,527,167) (4,339,216) (4,701,833) (362,617) Total other financing sources (uses) (4,527,167) (4,339,216) (4,701,833) (362,617) Net change in fund balances - - (2,713) (2,713) Fund balances - beginning 6,213 6,213 6,213 - Fund balances - ending 6,213$ 6,213$ 3,500$ (2,713)$ Budgeted Amounts The notes to financial statements are an integral part of this statement. (A Component Unit of the City of Clearwater, Florida) Clearwater Community Redevelopment Agency Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended September 30, 2023 19 CLEARWATER COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Clearwater, Florida) Notes to the Financial Statements September 30, 2023 20 (1) Summary of Significant Accounting Policies In 1981, the City of Clearwater (City) initially established a Community Redevelopment Agency (CRA), generally encompassing 260 acres, excluding existing rights-of-way, within an area generally described as Jones and Grove Streets to the north, Chestnut, Turner and Gould Streets to the south, Clearwater Bay to the west, and Missouri and Frederica Avenues to the east. The CRA was expanded in 2002 with approval of the City and the Pinellas County Board of County Commissioners to incorporate the eastern gateway area to downtown now referred to as the “Downtown Gateway.” The expansion area contains approximately 228 acres, excluding existing rights-of-way, abutting and to the east of the original CRA, more generally described as the area lying east of Greenwood and Missouri Avenues, east to Highland Avenue, and bounded to the north by Drew Street, and to the south by Court Street. In 2004, the City and Pinellas County approved a significant update to the Clearwater Downtown Redevelopment Plan that set forth an ambitious list of capital improvement projects and strategies for reducing blight and spurring economic redevelopment, for a duration of thirty years. As a condition of CRA expansion, the CRA was required to update Pinellas County on its progress in implementing the 2004 redevelopment plan after a 15-year time period. On February 26, 2019, the County voted unanimously to continue its support of the CRA as an urban revitalization area and to fund the CRA at 95% of the eligible tax increment for another 15 years, to 2034. On January 12, 2023, the City of Clearwater adopted a Redevelopment Plan for the North Greenwood Community Redevelopment Area by Resolution 23-01; and on February 2, 2023 adopted Ordinance No. 9642-23 establishing a Redevelopment Trust Fund for the North Greenwood Community Redevelopment Area pursuant to F.S. 163.387, providing for the deposit of funds into the trust fund, establishing the base year, providing for the funding of the Redevelopment Trust Fund, providing for the appropriation of tax increment revenues to the Redevelopment Trust Fund, providing for the use of such funds by the Community Redevelopment Agency, and providing for the duration of the tax increment financing. On May 23, 2023, the Pinellas County Board of County Commissioners adopted County Resolution 23-44 and County Ordinance 23-5, formally approving the North Greenwood CRA Plan, creating a Redevelopment Trust Fund, and setting the County’s TIF contribution rate at 95%. The County’s approval also established a mid-point review in ten years that will include a full assessment by staff with recommendations if the County’s TIF contribution should be adjusted or ended, and directed the creation of a North Greenwood Community Redevelopment Citizen Advisory Committee. The CRA is funded primarily by tax increment financing (TIF) revenues collected from Pinellas County, the City of Clearwater, and the Clearwater Downtown Development Board (for the original CRA only). TIF revenues are based on the increase in taxable value in the CRA district over a base year, which is identified as 1981 for the original CRA district and 2004 for the expanded CRA district. The base year taxable value has not yet been determined for the North Greenwood CRA. The Clearwater City Council serves as the governing board of the CRA, and City management has operational responsibility for the CRA. The CRA does not have any employees. The CRA maintains its accounting records in accordance with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board CLEARWATER COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Clearwater, Florida) Notes to the Financial Statements September 30, 2023 21 (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the CRA’s accounting policies are described below. (a) Reporting Entity The Governmental Accounting Standards Board requires that these financial statements disclose any component units of the Clearwater Community Redevelopment Agency. Component units generally are legally separate entities for which a primary government is financially accountable. In addition, the primary government is able to impose its will upon the component unit, or there is a possibility that the component unit may provide specific financial benefits or impose specific financial burdens on the primary government. The CRA does not have any component units. The CRA a component unit of the City of Clearwater and, therefore, is reported as a blended component unit in the City’s Annual Comprehensive Financial Report in accordance with generally accepted accounting principles. (b) Government-Wide and Fund Financial Statements The government-wide financial statements (the statement of net position and the statement of activities) report information on all of the activities of the primary government. Governmental activities normally are supported by tax increment financing collected from the Pinellas County, the City of Clearwater, and the Clearwater Downtown Development Board, which are reported as intergovernmental revenues. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for the governmental funds. Since the governmental fund financial statements are presented on a different measurement focus and basis of accounting than the government-wide statements’ governmental activities column, a reconciliation is presented on the page following each statement, which briefly explains the adjustments necessary to reconcile the fund based financial statements to the governmental activities column of the government-wide presentation. (c) Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash CLEARWATER COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Clearwater, Florida) Notes to the Financial Statements September 30, 2023 22 flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within sixty days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Interest income associated with the current fiscal period is considered to be susceptible to accrual and so has been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the CRA. The CRA reports the following major governmental funds: The general fund is the government’s primary operating fund, and includes the services, supplies and expenditures that occur during the fiscal year to conduct the CRA’s daily operations. The capital projects fund is used to account for capital improvements and funding for established programs whose work extends beyond one fiscal year. Funds are appropriated to specific redevelopment projects in support of the Clearwater Downtown Redevelopment Plan, which was most recently updated in 2018. (d) Budgets An annual appropriated budget is legally adopted by the Trustees by resolution on a basis consistent with generally accepted accounting principles for the general fund. The budget is controlled at the fund level. The Trustees are authorized to transfer budgeted amounts within the general fund. In instances where appropriations and estimated revenues have been amended during the year by resolution, budget data presented in the financial statements represent final authorized amounts. Encumbrances outstanding at year-end are not reappropriated as part of the subsequent year’s budget. (e) Encumbrances Encumbrance accounting is used in governmental funds to ensure effective budgetary control and accountability and to facilitate effective cash planning and control. At September 30, 2023, encumbrances expected to be honored upon performance by the vendor in the coming year were: General fund $ 3,500 Capital projects fund 3,949,238 $3,952,738 CLEARWATER COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Clearwater, Florida) Notes to the Financial Statements September 30, 2023 23 (f) Cash and Investments The Clearwater Community Redevelopment Agency does not currently maintain accounts with either financial institutions or brokerages titled under its name. Cash and cash equivalents as presented in these financial statements reflects the CRA’s equity in the City of Clearwater’s pooled cash and investments and for purposes of these financial statements are considered demand deposits. All investments are governed by the City’s Investment Policy, adopted on September 9, 2010. Investments with original maturities of three months or less are considered to meet the definition of cash equivalents. The majority of the investments in which the City’s funds have equity are held by the City’s consolidated pool of cash and investments. The City utilizes a consolidated cash pool to account for cash and investments of all City funds other than those which are required by ordinance to be physically segregated. The CRA is a participant in the City’s pooled cash and investments program. The consolidated cash pool concept allows each participating fund to benefit from the economies of scale and improved yield which are inherent to a larger investment pool. Formal accounting records detail the individual equities of the participating funds. The cash pool utilizes a single checking account for all receipts and disbursements. Since fund equities in this cash management pool have the general characteristics of demand deposits in that additional funds may be deposited at any time and also funds may be withdrawn at any time without prior notice or penalty, each fund’s equity account is considered a cash equivalent regardless of the maturities of investments held by the pool. (g) Fund Balance The Clearwater Community Redevelopment Agency classifies the elements of fund balance in accordance with GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definition. The objective of this statement is to enhance the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied. This statement establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which the CRA is bound to observe constraints imposed upon the use of the resources reported in the general fund. Each classification of fund balance is based on the relative strength of the constraints that control how specific amounts can be spent. The order of spending would follow the same hierarchy; that is, if an amount for a specific purpose is categorized as restricted or committed, then spending for such purpose would come from that classification before any lower classification. Nonspendable fund balance represents amounts that cannot be spent, such as inventories, prepaid amounts, property held for resale, long-term notes receivable and amounts that are legally or contractually required to remain intact. Restricted fund balance includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation. Committed fund balance includes amounts that can be used only for the specific purposes CLEARWATER COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Clearwater, Florida) Notes to the Financial Statements September 30, 2023 24 determined by the highest level of legal authority of the Trustees, a resolution, and can only be changed by the same action. Assigned fund balance includes amounts that are intended to be used by the Trustees for specific purposes but do not meet the criteria to be classified as restricted or committed because they are supported by management’s intent rather than a formal action of the Trustees. Unassigned fund balance represents the residual amount of fund balance not contained in the other classifications. The Clearwater Community Redevelopment Agency has not adopted a minimum fund balance policy. (2) Deposits and Investments Cash and cash equivalents as of September 30, 2023 are as follows: Demand deposits $13,692,956 Interest Rate Risk As a means of limiting exposure to fair value losses arising from rising interest rates, the City’s pooled cash investment policy prohibits investments in securities maturing more than fifteen years from the date of purchase, unless matched to a specific cash flow requirement. Additionally, the policy allows no more than 10% of the portfolio to have maturities in excess of ten years unless specifically matched against a debt or obligation. Finally, the investment policy states that it is the City’s intent to keep the weighted average maturity to three years or less, except for temporary situations due to market conditions and/or cash needs when the average maturity may exceed three years but shall not exceed five years. Credit Risk The City’s pooled cash investment policy, in accordance with Florida Statutes, allows investments in direct obligations of the United States, federal agencies, debt issued by the State of Florida or any political subdivision, and commercial paper of prime quality of the highest letter and numerical rating as provided by at least one nationally recognized rating service. Concentration of Credit Risk The City’s pooled cash investment policy limits the investment in any one issuer to 40% of the portfolio. CLEARWATER COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Clearwater, Florida) Notes to the Financial Statements September 30, 2023 25 Custodial Credit Risk Monies on deposit with financial institutions are held in qualified public depositories pursuant to Chapter 280, Florida Statutes, which provides protection against any loss to public depositors. Consistent with the City’s investment policy, investments securities owned by the City are held by the City’s custodian in the City’s name and all purchases use the “delivery vs. payment” procedure. (3) Capital Assets Capital asset activity for the year ended September 30, 2023 is as follows: Beginning Ending Governmental Activities:Balance Increases Decreases Balance Non-depreciable capital assets: Land 5,840,550$ 1,877,294$ -$ 7,717,844$ Construction in progress 60,964 162,286 - 223,250 Total non-depreciable capital assets 5,901,514 2,039,580 - 7,941,094 Depreciable capital assets: Buildings 458,098 - - 458,098 Total depreciable capital assets 458,098 - - 458,098 Less accumulated depreciation for: Buildings (66,806) (22,905) - (89,711) Total accumulated depreciation (66,806) (22,905) - (89,711) Net depreciable capital assets 391,292 (22,905) - 368,387 Net governmental activities capital assets 6,292,806$ 2,016,675$ -$ 8,309,481$ (4) Interfund transfers Transfers from the general fund to the capital projects fund contributed to the following projects: Economic Development – City project $ 1,769,724 Housing – County project 1,862,617 Transportation – County project 552,789 Community Policing project 266,703 Economic Development - County project 250,000 $ 4,701,833 There were no transfers from the capital projects fund to the general fund. CLEARWATER COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Clearwater, Florida) Notes to the Financial Statements September 30, 2023 26 (5) Interlocal Agreements On August 15, 2022, the Clearwater Community Redevelopment Agency (CRA) Trustees approved an interlocal agreement with the City of Clearwater (City) to provide funding in the amount of $266,703 to underwrite the cost of additional community policing services by the Clearwater Police Department in the Downtown Gateway District, Prospect Lake District, and Downtown Core District, encompassed by the CRA to address quality of life issues, drug dealing, prostitution and homelessness. On August 15, 2022, the Clearwater Community Redevelopment Agency (CRA) Trustees approved an interlocal agreement with the City of Clearwater (City) to provide funding for staffing, information technology and telephone services for the CRA, and reimbursement of certain expenses by the CRA to the City. Actual fees reimbursed to the City by the CRA totaled $658,264 for the fiscal year. On September 12, 2022, the CRA Trustees approved an interlocal agreement with the Clearwater Downtown Development Board (DDB) for the term of October 1, 2022 to September 30, 2023. The agreement specifies that the CRA will refund to the DDB the fiscal 2023 tax increment payment received from the DDB, which totaled $335,643 for the fiscal year, in support of downtown redevelopment initiatives. The agreement also provides that the CRA will deduct $81,504 from the reimbursement, to represent reimbursement to the CRA from the DDB for fiscal 2023 administrative support services provided. (6) Contingent Liabilities and Commitments For the year ended September 30, 2023, the CRA did not receive any amounts from grantor agencies that are subject to audit and adjustment by grantor agencies. (7) Loans Payable The following loans payable are reported as Due to Other Governments on the general fund balance sheet and the government-wide statement of net position: City of Clearwater: On September 1, 2011, the City of Clearwater approved a loan to the CRA in the amount of $325,440 for the environmental cleanup expense of the Car Pro site in the East Gateway area of the downtown. The loan is interest-free and is to be repaid upon the sale of the parcel. Clearwater Downtown Development Board: On September 22, 2003, the CRA Trustees approved an interlocal agreement with the Clearwater Downtown Development Board (DDB). Under the terms of this agreement, the DDB agreed to loan the CRA $48,000 to purchase property. The unsecured loan is not subject to interest and will be repaid to the DDB upon subsequent sale of the property. If the property is resold for an amount greater than the original purchase price, the CRA will pay a proportionate share (3.85%) of the profit. If the property sells for less than the original purchase price, then the CRA will reimburse the DDB for the entire principal amount of the loan. CLEARWATER COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Clearwater, Florida) Notes to the Financial Statements September 30, 2023 27 (8) Subsequent Event On April 9, 2024, the Community Redevelopment Agency closed on the sale of 6 adjoining parcels at 1260 Cleveland Street and 1277 Grove Street to Archway Clearwater Gardens, LLC for the construction of an 81-unit affordable apartment development consisting of one- and two-bedroom units ranging from 620-890 square feet. The units will be limited to households earning up to 30%-80% of Area Median Income and will be income restricted for the life of the project. This transaction is secured by a mortgage note in the amount of $17 million to Raymond James Bank as senior lender; a second subordinate mortgage note to the Community Redevelopment Agency in the amount of $3 million for a 30-year deferred term at 0% interest; a third subordinate mortgage note to the City of Clearwater in the amount of $610,000 funded by SHIP and HOME grants for a 30-year term at 0% interest; and a fourth subordinate mortgage note to the Community Redevelopment Agency in the amount of $1.35 million for a 40-year deferred term at 4.18% interest. INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Chair and Trustees Clearwater Community Redevelopment Agency We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of the Clearwater Community Redevelopment Agency (“Agency”), as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the Agency’s basic financial statements, and have issued our report thereon dated April 15, 2024. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Agency’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Agency’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Agency’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Agency’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests 28 disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CARR, RIGGS & INGRAM, LLC Clearwater, Florida April 15, 2024 29 MANAGEMENT LETTER To the Honorable Chair and Trustees Clearwater Community Redevelopment Agency Report on the Financial Statements We have audited the financial statements of the Clearwater Community Redevelopment Agency (“Agency”), as of and for the fiscal year ended September 30, 2023, and have issued our report thereon dated April 15, 2024. Auditor’s Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Accountant’s Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated April 15, 2024, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. No audit findings or recommendations were noted in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. Community Redevelopment Agency is a component unit of the City of Clearwater, Florida and was established by the City of Clearwater, Florida, Ordinances 2576-81 and 2779-82, pursuant to Chapter 163, Part III, Florida Statutes. Financial Condition and Management Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the Agency has met one of more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific conditions met. In connection with our audit, we determined that the Agency did not meet any of the conditions described in Section 218.503(1), Florida Statutes. 30 Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures. It is management’s responsibility to monitor the Agency’s financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Specific Information As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Clearwater Community Redevelopment Agency reported: a. The total number of district employees compensated in the last pay period of the Agency’s fiscal year as -0-. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the Agency’s fiscal year as 26. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $-0-. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $236,586. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported. The City of Clearwater completed the Cleveland Street streetscape project in FY2023 which included Paving, Beautification, Water and Sewer, and Stormwater work. The Agency has spent $223,250 to date ($162,286 in FY2023) for the purpose of an outdoor festival area at the end of the Cleveland Street project, which is still under construction as of 9/30/2023. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General included in the Agency’s basic financial statements. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)7, Rules of the Auditor General, the Clearwater Community Redevelopment Agency reported: a. The millage rate imposed by the Agency as -0-. b. The total amount of ad valorem taxes collected on behalf of the Agency as -0-. c. The total amount of outstanding bonds issued by the Agency and the terms of such bonds as $-0-. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. 31 Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CARR, RIGGS & INGRAM, LLC Clearwater, Florida April 15, 2024 32 INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES To the Honorable Chair and Trustees Clearwater Community Redevelopment Agency We have examined the Clearwater Community Redevelopment Agency (“Agency”), compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2023. Management is responsible for the Agency’s compliance with the requirements. Our responsibility is to express an opinion on the Agency’s compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Agency complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Agency complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the examination engagement. Our examination does not provide a legal determination on the Agency’s compliance with specified requirements. In our opinion, the Agency complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2023. This report is intended solely for the information and use of management and the State of Florida Auditor General and is not intended to be and should not be used by anyone other than these specified parties. CARR, RIGGS & INGRAM, LLC Clearwater, Florida April 15, 2024 33 INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH REDEVELOPMENT TRUST FUND To the Honorable Chair and Trustees Clearwater Community Redevelopment Agency We have examined the Clearwater Community Redevelopment Agency’s (the “Agency”), compliance with the requirements of Sections 163.387(6) and 163.387(7), Florida Statutes, Redevelopment Trust Fund, during the year ended September 30, 2023. Management of the Agency is responsible for the Agency’s compliance with those requirements. Our responsibility is to express an opinion on the Agency’s compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Agency complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Agency complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the examination engagement. Our examination does not provide a legal determination on the Agency’s compliance with specified requirements. In our opinion, the Agency complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2023. This report is intended solely for the information and use of City Council, management and the State of Florida Auditor General and is not intended to be and should not be used by anyone other than these specified parties. CARR, RIGGS & INGRAM, LLC Clearwater, Florida April 15, 2024 34 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0690 Agenda Date: 6/17/2024 Status: FiledVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.2 SUBJECT/RECOMMENDATION: Presentation on Art Oasis Mural Fest 2024. SUMMARY: STRATEGIC PRIORITY: Page 1 City of Clearwater Printed on 8/23/2024 ART OASIS MURAL FEST DOWNTOWN & EAST GATEWAY ART OASIS MURAL FEST SIX PARTICIPATING BUSINESSES IN THE DOWNTOWN AND EAST GATEWAY NEIGHBORHOODS RANCHITO DE PEPE SEÑOR BUBBLES CLEAR TRACK STUDIOS FRATERNAL ORDER OF THE EAGLES SEÑOR SUBS CHARLIES SUSHI RANCHITO DE PEPE ARTIST - FRANKIE G TITLE -FAMILIA (FAMILY) RANCHITO DE PEPE RANCHITO DE PEPERANCHITO DE PEPE SEÑOR BUBBLES ARTIST - NAOMI HAVERLAND TITLE -THE ADVENTURES OF SEÑOR BUBBLES SEÑOR BUBBLES SEÑOR BUBBLES CLEAR TRACK STUDIOS ARTIST - CECILIA LUEZA TITLE - PRISMATIC RUSH CLEAR TRACK STUDIOS CLEAR TRACK STUDIOS FRATERNAL ORDER OF EAGLES ARTIST - ZULU PAINTER TITLE - JOY OF FLIGHT THROUGH MUSIC (FLY LIKE AN EAGLE) FRATERNAL ORDER OF EAGLES FRATERNAL ORDER OF EAGLES SEÑOR SUBS & GYROS ARTIST - REI RAMIREZ TITLE - REVERIE MARSHES SEÑOR SUBS & GYROS SEÑOR SUBS & GYROS CHARLIE'S SUSHI & JAPANESE RESTAURANT ARTIST - EVOCA1 TITLE - WALTZ IN ORANGE AND BLUE CHARLIE'S SUSHI & JAPANESE RESTAURANT CHARLIE'S SUSHI & JAPANESE RESTAURANT ART OASIS MURAL FEST GENERATED SOME POSITIVE BUZZ AROUND CLEARWATER! BUSINESSES ARE ALSO FEELING THE BUZZ! We want to tell you how incredibly grateful we are to have such a beautiful mural on our wall. For 15 years I've been in this building and went from being embarrassed of our exterior to so proud to show the world the beauty that is that mural that Cecelia painted. My clients love it and I hear talk about future music videos being recorded in front of it. My family and I often walk outside and walk around the building just to look at it. My 3-year-old son loves the colors and shouts them out as we walk past it. It brings so much joy, even to people walking or slowly driving past it. :-) Thanks again!, Mike Johnson BAY NEWS 9 STORY ART OASIS MURAL FEST DOWNTOWN & EAST GATEWAY Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0692 Agenda Date: 6/17/2024 Status: PassedVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.3 SUBJECT/RECOMMENDATION: Approve the Community Redevelopment Agency (CRA) Business Spotlight program that will provide exposure to businesses within the Downtown Clearwater CRA and authorize the appropriate officials to execute same. SUMMARY: The Community Redevelopment Agency (CRA) recommends approving the CRA Business Spotlight Program to support its goals of attracting residents, visitors, businesses, and employees to downtown. Over six months, CRA staff has engaged with business owners and community stakeholders to develop partnerships that foster meaningful connections within the community. The purpose of the Community Redevelopment Agency (CRA) Business Spotlight program is to promote local businesses within the community. It provides exposure and support to these businesses, helping them thrive and contribute to the economic growth and vitality of the area. The program involves showcasing different businesses through marketing efforts or other initiatives to attract customers and increase awareness of the products and services offered by local establishments. It will foster a sense of community pride and engagement by highlighting the unique offerings of businesses in the area. The Business Spotlight Program directly promotes goals and objectives of the 2018 Clearwater Downtown Redevelopment Plan, specifically:  People Goals: Downtown shall be a place that attracts residents, visitors, businesses, and their employees and enable the development of community. The City shall encourage a vibrant and active public realm, recreation and entertainment opportunities and support the community and neighborhoods.  Objective 1D: Encourage a variety of office-intensive businesses, including finance and insurance, IT/Software, professional services, data management, analytics and services, and medical to relocate and expand in Downtown to provide a stable employment center.   This program is intended for local business owners who meets specific criteria, including location within designated Downtown Clearwater redevelopment boundaries, legal compliance, active operational status, and a commitment to community involvement. Eligible businesses surrounding various sectors, including retail and restaurant businesses, personal services industries, galleries, theaters, and other cultural and community gathering spaces. Upon approval, the Business Spotlight will follow a marketing and communications plan. The application window will be open for four weeks to allow businesses to submit their applications. Once the application window has closed, committee members will carefully review and assess all received applications. Upon completion of the review process, approved businesses will be notified, and meetings will be scheduled to discuss timelines, expectations, and other pertinent details. At a future CRA meeting, a presentation of the final recipients of the Business Spotlight Program will be recognized. Page 1 City of Clearwater Printed on 8/23/2024 File Number: ID#24-0692 The proposed program meets the goals of the downtown redevelopment plan and provides a partnership opportunity for business owners who wish to establish a sense of community in our redevelopment area. Funding for this program in an amount not to exceed $5,000 will be used for printing flyers and other marketing to help administer this program as authorized by Florida Statute 163.387(6)(c)1. APPROPRIATION CODE AND AMOUNT: Funding for this program in an amount not to exceed $5,000 are available in R2002 Community Engagement. STRATEGIC PRIORITY: 2.2 Cultivate a business climate that welcomes entrepreneurship, inspires local investment, supports Eco-firendly enterprises, and encourages high-quality growth. 3.1 Support neighborhood identity through services and programs that empower cmmunity pride and belonging. 3.3 Promote marketing and outreach strategies that encourage stakeholder engagmenet, enhancement community educations, and build public trust. Page 2 City of Clearwater Printed on 8/23/2024 1 _____________________________________________________________________________________ A. Program Overview The purpose of the Community Redevelopment Agency (CRA) Business Spotlight program is to promote local businesses within the community. It provides exposure and support to these businesses, helping them thrive and contribute to the economic growth and vitality of the area. The program involves showcasing different businesses through marketing efforts or other initiatives to attract customers and increase awareness of the products and services offered by local establishments. It will foster a sense of community pride and engagement by highlighting the unique offerings of businesses in the area. The approval of the program will be established by the Community Redevelopment Agency Trustees on an annual basis. Applications will be accepted on a rolling basis. The Business Spotlight Program directly promotes goals and objectives of the 2018 Clearwater Downtown Redevelopment Plan, specifically: People Goals (page 46): Downtown shall be a place that attracts residents, visitors, businesses, and their employees and enable the development of community. The City shall encourage a vibrant and active public realm, recreation and entertainment opportunities and support the community and neighborhoods. Objective 1D: Encourage a variety of office-intensive businesses, including finance and insurance, IT/Software, professional services, data management, analytics and services, and medical to relocate and expand in Downtown to provide a stable employment center. B. Program Eligibility The Community Redevelopment Agency staff will administer the Business Spotlight Program. Approval for this program is contingent on the CRA Trustees. Application submission does not guarantee approval. Applications will be reviewed for completeness and compliance with the program criteria. Applications that do not comply with the program criteria and conditions will not be eligible. All applications must meet the following criteria: • Location: The applicant must be located within the boundaries of the Downtown CRA. (see attached map) • Legal Compliance: The business must be legally registered and compliant with all local, state, and federal regulations. • Operational Status: During the application process, the business should be actively operating and open to the public. City of Clearwater Community Redevelopment Agency Business Spotlight Program 2 • Business Type: The program may focus on the following kinds of businesses as defined in the Downtown Zoning code: o Retail and restaurant businesses o Personal Services Industries (e.g., barber and beauty shops, health spas, dance studios, photography and art studios, tailoring, and other similar services) o Galleries, theaters, other cultural and community gathering spaces. • Commitment to Community: The business should demonstrate a commitment to the local community through involvement in community events, initiatives, partnerships, supporting local suppliers, or contributing to the overall economic development of the area. • Business Recipient Requirements: The business is required to participate in program activities, such as marketing campaigns, and promotional efforts coordinated by the Community Redevelopment Agency. C. Program Process Business representatives must first complete a Business Spotlight program application. Selection committee reviews the application for eligibility. Once an application is completed and in compliance with the Business Spotlight program, the selection committee will contact approved applicants to proceed with the next steps of the process. Below is a comprehensive outline of the procedural steps involved in the program: • Application Submission: Interested businesses within the designated Community Redevelopment Area (CRA) submit their applications through the designated portal on the Community Redevelopment Agency website, hand-delivered, or via email to XXX. Each application will undergo review to ensure alignment with the objectives outlined in the Downtown Redevelopment Area Plan. A representative from the Community Redevelopment Agency will provide general guidance and support to potential applicants throughout the application process. Incomplete applications will not be accepted. • Review and Evaluation: The selection committee reviews all received applications to ensure they meet the eligibility criteria outlined for the Business Spotlight Program. This may involve verifying the business's location within the CRA boundaries, legal compliance, and operational status. The property must be free from any liens (except mortgage liens), judgments, or encumbrances (except easements) of any kind, and all city obligations must be current. The applicant must possess a current City of Clearwater Business Tax Receipt and must be the business owner or a registered agent. Applications that meet the criteria proceed to the evaluation stage. • Selection Process: A selection committee comprised of representatives from the Community Redevelopment Agency, representatives from the City of Clearwater, and community stakeholders evaluates the eligible applications. They consider factors such as the business's alignment with program goals, its potential impact on the community, and its readiness to participate in program activities. • Notification of Selection: Businesses selected to participate in the Business Spotlight Program are notified of their acceptance via email and official letterhead followed by a scheduled one-on- one meeting. They will receive detailed information about the program guidelines, including expectations, benefits, promotional activities, opportunities for engagement, and next steps. 3 • Business Recipient Requirements: Throughout the program duration, selected businesses actively engage in promotional activities coordinated by the Community Redevelopment Agency. This may include participation in marketing campaigns, attendance at community and networking events and/or Community Redevelopment Agency council meetings, and networking with fellow participants. The application form is available by clicking on the link provided XXX. D. Program Timeline The proposed program timeline begins with presenting the Business Spotlight Application for approval by the CRA Trustees at a CRA meeting. Following approval, the Business Spotlight Program will follow a marketing and communications plan. The application window will be open for four (4) weeks to allow businesses to submit their applications. Subsequently, committee members will dedicate four (4) weeks to carefully review and assess all received applications. Upon completion of the review process, approved businesses will be notified, and one-on-one meetings will be scheduled to discuss timelines, expectations, and other pertinent details. Finally, at future CRA meeting, a representative from the CRA will formally present the final recipients of the Business Spotlight, culminating the selection process and recognizing the chosen winners. E. Next Steps If you are interested in learning more about the Business Spotlight program, please click on the link provided XXX or contact [CRA representative] at XXX [email]. Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0689 Agenda Date: 6/17/2024 Status: FiledVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.4 SUBJECT/RECOMMENDATION: Provide direction on Cleveland Street Shipping Container/Mobile Vendors. SUMMARY: CRA staff met with city departments to discuss the feasibility of shipping containers and mobile vendors on the pedestrian corridor of Cleveland Street, with the goal of creating new commercial activity not within traditional storefronts. Shipping container businesses will not be allowed on the public right of way, but mobile vendors can be granted access to operate within this area as a new form of commercial activity. This commercial activity could be Airstreams, food trucks, and other businesses operating on wheels. The following three ideas could bring new commercial activity to the Cleveland Street corridor: 1.Dedicated Commercial Activity The road closure on the 400 block of Cleveland Street provides an opportunity for new commercial activity within the center turn lanes. This currently empty and unused space could potentially accommodate two vendors at Fort Harrison Avenue and one vendor at Osceola Avenue, creating up to three new business locations. Businesses operating from these locations could operate as their primary place of business. Although technically mobile, these businesses would remain within their designated location. The addition of parklets in nearby unused parking spaces could help further enhance these new business locations with outdoor seating and other public amenities. 2.Event Commercial Activity Mobile vendors could be utilized during special events, such as food truck festivals. These special event vendors could operate out of the unused parking spaces and open areas along both the 400 and 500 blocks of Cleveland Street. This type of activity would generate an influx of activity during special event times, and it could become a monthly or seasonal event. 3.Hybrid Commercial Activity A hybrid could be utilized with mobile vendors to establish regular dedicated ongoing new businesses. Plus, special events could be created to bring an influx of new commercial activity during those events. These plans to enliven the Cleveland Street corridor do meet the following CRA goals and objectives: Goal 1 - People -Objective 1E: Maintain Cleveland Street as Downtown’s Main Street which is valued for its historic character and pedestrian scale. -Objective 1H: Maintain, activate, and program parks, plazas, and recreational areas. Page 1 City of Clearwater Printed on 8/23/2024 File Number: ID#24-0689 Goal 2 - Accessibility -Objective 2B: Strengthen Cleveland Street, Osceola, and Fort Harrison Avenues as local, pedestrian-oriented streets. Identify other local streets to be reinvigorated with active ground-floor uses. -Objective 2H: Support temporary techniques that improve the street environment, such as murals, temporary planters, sharrows, bike lanes, and painted intersections until permanent improvements are made. Goal 3 - Amenity -Objective 3G: Create and activate space to work as signature destinations, including civic plazas, markets, and retail gathering places that promote economic growth for Downtown. Goal 4 - Urban Design -Objective 4A: Encourage redevelopment that contains a variety of building forms Staff Recommends a hybrid model to provide a mixture of opportunities for consumers and enliven the Cleveland Street corridor. STRATEGIC PRIORITY: 2.1 Strenghten public-private iniatives that attract, develop, and retain diversified business sector. 2.2 Cultivate a business climate tht welcomes entrepreneurship, inspires local investment, supports Eco-friendly enterprises, and encourages high-quality job growth. Page 2 City of Clearwater Printed on 8/23/2024 |1DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Cleveland Street Mobile Vending Update |2CLEARWATER COMMUNITY REDEVELOPMENT AGENCY 1.Target Area 2.Types of Businesses 3.Three Potential Options 4.Recommendations 5.Next Steps GOAL: Create opportunities for new commercial activity on Cleveland Street not within traditional building storefronts. |3DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Downtown Target Area 400 - 500 Blocks of Cleveland Street |4CLEARWATER COMMUNITY REDEVELOPMENT AGENCY New Business Types CRA staff met with Planning & Development, Public Works, Economic Development, and the City Manager’s Office to discuss options for new commercial activity on Cleveland Street. Type Shipping Container Mobile Vendor Status •Not Allowed •Allowable |5DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Option 1: Dedicated Commercial Activity 400 Block of Cleveland Street -Activating the unused center turn lane on the 400 block of Cleveland Street -Location of new dedicated commercial activity -Mobile vendors operating dedicated business locations -Parklets adjacent to new commercial activity |6DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Commercial Activity Options -Airstream -Food Truck -Mobile Vendors |7DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Parklets -Areas to support new commercial activity with seating and amenities. -Areas become a new public destination. |8DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Option 2: Event Activity -Special events -Activating Cleveland Street for a set time -Example: Food Truck Festival -Reoccurring schedule, i.e. monthly or seasonal -Support from the Downtown Development Board (DDB) 400 - 500 Blocks of Cleveland Street |9DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Option 3: Hybrid Commercial Activity -Utilizing both dedicated and event commercial activity. 400 - 500 Blocks of Cleveland Street |10DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Recommendation -Option 3: Hybrid Commercial Activity -Creation of up to three new dedicated commercial spots using the center turn lane on the 400 block of Cleveland Street. -Creation of dedicated parklets on both ends of the 400 block of Cleveland Street. -With the support of the Downtown Development Board (DDB), issue an RFP for event organizers to create reoccurring events with mobile vendors on the 400 - 500 blocks of Cleveland Street. |11DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Cleveland Street Mobile Vending Update 400 Block Occuppied Institutional Non commercial Unavailable Restaurants Services Retail construction challenged 19 SPACES 12 2 7 5 4 2 3 out 7 2 out of 7 Parking 4 salon Art realtor cony store religioustheater 500 Block 3 5 0 9 3 0 0 3 out 9 5 out of 9 20 SPACESParking 7 600 Block 7 1 1 10 0 6 1 0 10 21 SPACES vape Parking 7 web mktgpilatesescapechirosalon Prkg Total 17 60 TOTAL 22 6 3 26 8 10 1 6 7 n ra A 14. 4 6- 4 TermsInstitutional Not open to general public, no goods or sevices provided. Non CommercialUnavailableConstructionChallenged may have public access but no goods or services Can not be leased or occupied. No leases being offered. under long term renovations. Spaces blocked off for +++ YEARS spaces kept empty for ++ years, leases at significantly above market rates ChallengesLack of Volume We simply do not have enough buisnesses to sustain a successful downtown Lack of Diversity Dt needes diverse retail and food and drink to sustain continued high traffic. Perception Dowtown' s lack of buisnesses feeds the negative perception of downtown. Lack of control over Private Property The property owner have held steadfast in their resistance to activate their property Visual Blight There is a significant negative impact to visibly empty and blighted buildings. Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#24-0703 Agenda Date: 6/17/2024 Status: FiledVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 5.1 SUBJECT/RECOMMENDATION: Directors Report - June 2024 SUMMARY: STRATEGIC PRIORITY: Page 1 City of Clearwater Printed on 8/23/2024 |1DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA ZDirector’s Report 06/2024 |2CLEARWATER COMMUNITY REDEVELOPMENT AGENCY Table Of Contents 1.CRA Department Updates. •Clearwater CRA Webpage. 2.Downtown CRA Updates. •Projects completed. •Projects under construction. •CRA/Clearwater Police Department Engagement. •Downtown Grants. 3.North Greenwood CRA Update. •NGCRA Community Advisory Committee. •NGCRA Community Grants. |3CLEARWATER COMMUNITY REDEVELOPMENT AGENCY CRA Department Updates |4CLEARWATER COMMUNITY REDEVELOPMENT AGENCY Clearwater CRA Website The Clearwater CRA is in the process of building a new website that will cover news, grant opportunities, and updates about the Downtown Clearwater and North Greenwood CRA areas. Website Details: Contractor:Granicus Consultant:Lauryn Morstorf Budget:$13,250.00 Website timeline: •April 2024 - Wireframe approved. •May 2024 – Design finalized. •June/July 2024 - Content creation. •August 2024 - Site development and content migration. •September 2024 - Review and Launch. |5DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Downtown CRA Updates |6DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Annual Report (Complete) Digital copy of the FY 2022-23 Clearwater CRA Annual Report available at myclearwater.com/cra. Budget: $350 printing expenses. Art Oasis Mural Festival (Complete) The Arts & Cultural Affairs department and Clearwater CRA helped fund the Art Oasis Mural festival that took place in Downtown Clearwater March 2024. Budget: CRA: $60,000 | Arts & Cultural Affairs : $10,000 | Total: $70,000 |7DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Mercado – Public Art (In Progress) Project Details: •Budget:CRA: $60,000 | Cultural Affairs: $10,000 | Total: $70,000 Progress: •May 15: CRA staff and Cultural Affairs met to discuss plans for community engagement for Mercado public art and construction. •May 20: CRA, Cultural Affairs, and Public Communications met to discuss community engagement. Next Steps: •The community will select their favorite artist at community meetings this summer. The Clearwater CRA and Cultural Affairs will combine resources to beautify the Mercado with mosaic art from 3 different artist. |8DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Mercado Project (Under Construction) Project Details: •Contractor:Biltmore Construction. •Budget:$1,154,762.61. •Fall 2024:Projected completion of the Mercado. Community Outreach: ✓4/18/24:CRA staff distributed flyers to businesses in the Downtown Gateway area. ✓4/24/24: The Mercado community meeting was held at De Luka's Restaurant and Bar. ✓4/26/24: The Mercado community meeting was a featured article on Bay News 9. Construction is underway on the Mercado, a new public gathering space coming to the intersection of Cleveland Street and Gulf-to-Bay Boulevard. |9DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Downtown Gateway Trolley (In Progress) Progress: •May 8: CRA staff met with Planning & Development, Public Works, Engineering, and the City Manager’s Office to discuss plans. CRA staff is collaborating efforts to research the possibility to implement a trolley route that would connect the Downtown Gateway to the Downtown to the Downtown Core. |10DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Clearwater Police Department &Downtown CRA Community Outreach Engaged with a total of 39 businesses 4/13 – 400-600 Blocks of Cleveland street . Engaged with 11 businesses 4/14 – Gateway 1401-1407. Engaged with 7 businesses 4/20 – Gateway 1200-1364. Engaged with 11 businesses 4/21 – Gulf to Bay Strip in the Gateway 1390-1478. Engaged with 10 businesses |11DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Downtown Clearwater CRA Police Statistics 2024 Month: 2024 Jan Feb Mar Apr Total Arrest 16 8 6 6 36 Ordinance violations 7 2 -2 14 FIR/Citizen contacts 14 12 8 23 57 Marchman Act (Intoxication) transport to jail 3 1 -1 5 Safe Harbor transport 1 -1 2 4 Trespass after warning (Arrest)8 3 3 4 18 Trespassing warning issued 16 7 9 16 48 Directed patrols 86 101 120 160 467 Offence/incident reports taken 54 35 42 64 195 Totals:205 169 189 278 844 "The neighborhood has improved a lot. Before, it was very hard, but not anymore because of the job you guys have done." - Don Juan Envios Universal |12DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Archway Gardens (Under Construction) Project Details •Contractor: Archway Clearwater Gardens, LLC. •Budget: $3,000,000. •04/09/2024: Closed on Archway Gardens 1250 Cleveland Street. •Groundbreaking: TBD The Clearwater CRA helped fund an affordable housing project with Archway Gardens located at 1250 Cleveland Street. The project will provide for 52 one- bedroom and 29 two-bedroom units for a total of 81 units. |13DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA New Businesses Machi Boba & More Location: 1219 S Missouri Ave Opened: 5/2024 Los Amici Bakery & Pizza Location: 1100 Cleveland St, Suite A Opened: 4/2024 Waffle’s Dream Location: 1438 Gulf to Bay Blvd Opened: 4/2024 Olive & Thyme Location:520 Cleveland Street Opening: TBA |14DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Business Renovation - Approved Grants Glass Service 8, Inc 1160 Ct St Clearwater, "Thanks to my Clearwater CRA grant we were able to get a new roof that we desperately needed. Thank you so much for helping our community look Great." Awarded: $59,951.82 for new roof renovations. |15DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Business Renovation - Approved Grants Natures Food Patch 1225 Cleveland St "We are thrilled with the new signs and are grateful that the city could help us achieve a fresh new look that is more in line with our brand of being Clearwater’s local & organic grocery store since 1987!" Awarded: $7,282.50 for new storefront signage. |16DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Approved - Economic Recovery Grants Business Approval Date Amount Proposed Amount Awarded Hands on Bicycle 09/20/2023 $25,000 $24,128.80 Travelers Inn 12/22/2023 $15,903 $15,903 Taste of Africa Groceries LLC 12/22/2023 $24,318.61 $24,318.61 Juanito's Grocery LLC 02/15/2024 $25,000 $24,626.90 State Farm Insurance: Robinson and Finical Services Inc.03/08/2024 $23,816.85 $23,717.16 Fraternal Order of Eagles #3452 03/08/2024 $18,811 $13,171.95 Ak Tax and Translation Services LLC 04/03/2024 $25,000 $5,394.12 Charlie's Sushi & Japanese Restaurant 04/03/2024 $25,000 $25,000 Tiny Paws Daycare 04/05/2024 $25,000.00 $13,079.40 Talanga's Holding LLC / Deluka's Restaurant 05/13/2024 $25,000.00 $25,000.00 Program Budget: $500,000 |17DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Approved - Essential Equipment Micro-Grant Business Description Amount Proposed Amount Awarded Talanga's Holding LLC (Deluka's Restaurant)Bottle Cooler $2,119.00 $1,758.90 Charlie's Sushi & Japanese Restaurant Repair Kitchen Prep Station Refrigerator & Replace Beverage Air SPE 72HC-18 72" sandwich, salad prep table with refrigerated base $4,475.00 $3,500.00 Robinson Hospitality Corp/Downtown Pizza Replace Sandwich prep table/cooler (new)-avantco SS-PT-71M-C 70" 3 door Mega Top Stainless Steel Refrigerated Sandwich Prep Table with 11 ½ board. $3,162.49 $3,162.49 Program Budget: $175,000 |18DOWNTOWN CLEARWATER COMMUNITY REDEVELOPMENT AREA Approved – Business Renovation Grants Business Description Total Project Amount CRA Funding Amount Fashion Cleaners and Shirt Laundry Inc.Roof & Asphalt $100,066.00 $50,033.00 Energy Professionals, LLC Roof Replacement, Install AC Units, Repave Parking Area, & Repair Dumpster Gate $195,029.60 $97,514.80 MBA Food and Beverage, LLC Repair Roof & Replacement of Cooler $67,196.23 $33,598.12 Clear Track Recording Studios, LLC Approved, but decided to proceed at a later date.$17,452.47 $0 Glass Service 8 Inc.Replacement of Roof & New Asphalt for Parking Lot $119,903.65 $59,951.82 Nature's Food Patch Replacing the Storefront Signs & Repainting the Exterior $14,565.00 $7,282.50 45 Sports Bar and Lounge Demolition of walls, new framing, electrical, plumbing, kitchen hood installation, fire suppression system, ramps/restroom in compliance with ADA code $38,900.00 $19,450.00 Program Budget: $800,000 |19NORTH GREENWOOD COMMUNITY REDEVELOPMENT AREA North Greenwood CRA Updates |20NORTH GREENWOOD COMMUNITY REDEVELOPMENT AREA North Greenwood CRA Community Advisory Committee Recruitment Update Campaign Key Dates: •Mid-April: Campaign Launch. •May 17 : NGCAC Application Deadline. •June 17 : Council meeting for applicant appointment. Recruitment Progress: •CRA staff distributed flyers to 16 businesses. •Flyers were distributed and at North Greenwood Recreation Center. •CRA emailed key stakeholders with NGCAC information. •CRA attended community meetings to share information on NGCAC. •CRA received final applicants on May 17. The CRA has launched a recruitment campaign for the North Greenwood CRA Citizens Advisory Committee.Promotions for the campaign will involve the distribution of printed postcards,flyers, posters and community engagement. |21NORTH GREENWOOD COMMUNITY REDEVELOPMENT AREA Ongoing North Greenwood CRA Community Engagement Efforts CRA staff meets monthly (at a minimum) with the following: •Clearwater Urban Leadership Collation •Business owners •Residents Stakeholder Identification: •Staff in process of identifying area not-for-profits, financial institutions, religious organizations, etc., to build relationships and potential future partnerships |22NORTH GREENWOOD COMMUNITY REDEVELOPMENT AREA North Greenwood CRA - ARPA Grant Recipients, FY 2022-23 Business Date Approved Amount Proposed Amount Recommended Sr. Utility Assistance 9/19/2023 $22,400 $24,000 North Greenwood Homeowner Repair 9/19/2023 $91,300 $91,300 Home Expo & Tool Library 9/19/2023 $88,300 $40,000 Feeding Tampa Bay 9/15/2023 $200,000 $90,000 Metropolitan Ministries Inc 9/22/2023 $128,875 $60,000 New Vision Behavioral Health Inc 9/12/2023 $295,520 $100,000 Hypatia Collective 8/14/2023 $50,000 $50,000 Andrea Evans-Dixon 8/8/2023 $32,450 $32,450 Greenwood Groves 8/9/2023 $47,000 $47,000 KB Technology 8/16/2023 $15,000 $15,000 ReDefiners World Languages 8/22/2023 $98,340 $98,340 360 Eats 8/22/2023 $84,000 $30,000 In fiscal year 2022-23,25 ARPA grants totaling to $1,400,000 was awarded to help jumpstart programing in North Greenwood. |23NORTH GREENWOOD COMMUNITY REDEVELOPMENT AREA North Greenwood CRA - ARPA Grant Recipients (Continued) Businesses Date Approved Proposed Amount Amount Rewarded Advantage Insurance Solutions 8/4/2023 $35,000 $22,500 Martin Luther King jr. Neighborhood Family Center 8/4/2023 $131,000 $100,000 Dr. Traci's House 8/4/2023 $299,600 $100,000 Family Enrichment Services 8/4/2023 $30,000 $30,000 CULC 8/4/2023 $325,000 $175,000 The First Rung Project 8/4/2023 $50,000 $25,000 Pinellas County African American History Museum 8/18/2023 $50,000 $50,000 Loaded 8/4/2023 $25,000 $20,000 Konscious Kreation 8/8/2023 $10,000 $10,000 Mt. Olive CDC 8/18/2023 $169,983 $98,000 PDAPx A4L2 8/10/2023 $21,000 $21,000 Youth on Track 8/8/2023 $100,000 $20,410 Move On up 8/10/2023 $60,000 $50,000 ARPA GRANT TOTAL: ----- $2,023,785 $1,400,000