City Hall 112 S. Osceola Avenue Clearwater, FL 33756 Meeting Minutes Monday, August 4, 2014 1:00 PM City Hall Chambers Community Redevelopment Agency Page 1
Roll Call Present 5 - Chair George N. Cretekos, Trustee Doreen Hock-DiPolito, Trustee Jay E. Polglaze, Trustee Bill Jonson, and Trustee Hoyt Hamilton Also Present William B. Horne II City Manager, Jill S. Silverboard - Assistant City Manager, Rod Irwin - CRA Executive Director/Assistant City Manager, Pamela K. Akin - City Attorney, Rosemarie Call - City Clerk, Nicole Sprague - Official Records and Legislative Services Coordinator To provide continuity in research, items are listed in agenda order although not necessarily discussed in that order. Unapproved 1. Call To Order Chair Cretekos The meeting was called to order at 1:00 p.m. at City Hall. 2. Approval of Minutes 2.1 Approve the minutes of the June 2, 2014 CRA Meeting as submitted in written summation by the City Clerk. Trustee Jonson moved to approve the minutes of the June 2, 2014 CRA Meeting as submitted in written summation by the City Clerk. The motion was duly seconded and carried unanimously. 3. Citizens to be Heard Regarding Items Not on the Agenda None. 4. New Business Items 4.1 Ratify and confirm repayment of Community Redevelopment Agency (CRA) interfund loans for the environmental cleanup of Clearwater Automotive Salvage Yard and approve a 30% discount of said loan according to EPA rules for a total repayment amount of $454,179 to the s Brownfields Cleanup Revolving Loan Fund (BCRLF). The received a US Environmental Protection Agency (EPA) grant to establish a Clearwater BCRLF to provide funding to parties interested Page 2
in the redevelopment of environmentally impaired properties. The BCRLF is structured so that loan repayments made once a property has been remediated can cycle back through BCRLF to be made available for use at other properties. The BCRLF allows government entities to loan to other government agencies, but requires a City resolution. In May 2005, the City Council adopted Resolution 05-19 authorizing the use of the BCRLF, and a loan not to exceed $350,000 to the CRA for the environmental cleanup of the Clearwater Automotive Salvage Yard (Clearwater Auto). In June 2008, the City Council adopted Resolution 08-12 authorizing the allotment of $350,000 in additional monies to the CRA in the form of a loan to complete the Clearwater Auto remediation. Both resolutions state that the funds appropriated by the City from the BCRLF, and utilized by the CRA for this purpose, shall be repaid to the BCRLF by the City or the CRA from either: a) the private developer or another party to whom the CRA ultimately conveys the Site following the environmental cleanup; b) TIF funds; c) the General Fund of the City, through budget appropriations if the property is unable to be sold after a reasonable time (within five years of the completion of the environmental cleanup provided for herein); and d) other means legally sufficient and approved by the Environmental Protection Agency (EPA). The CRA is opting to repay the funds from TIF funds since the environmental cleanup has been completed as stated in the Florida Department of Environmental Protection (FDEP) Site Rehabilitation Completion order (SRCO) issued July 1, 2009 and the property has not been sold. The funds for the repayment of the loan have been approved through the CRA budget process and are available in CRA project 388-94855. The purpose for the ratify and confirm is that while Resolution 05-19 and the Interlocal Agreement between the City and CRA approved the loan repayment, it did not include the approval of a discounted loan repayment per EPA rules. EPA rule Section II FRL-7989-9 states that the City may discount up to 30% of the principal amount of a loan, provided that the total amount of the principal forgiven shall not exceed $200,000. In summary, the total amount of the two loans made to the CRA was $648,827. Applying the 30% discount for these loans at $194,648 makes the final repayment to the BCRLF (188-99802) total $454,179. This payment satisfies the Interlocal Agreement between the City and CRA regarding the cleanup related to the Clearwater Auto project. Page 3
APPROPRIATION CODE AND AMOUNT: 388-94855 Trustee Hock-DiPolito moved to ratify and confirm repayment of Community Redevelopment Agency (CRA) interfund loans for the environmental cleanup of Clearwater Automotive Salvage Yard and approve a 30% discount of said loan according to EPA rules for a total repayment amount of $454,179 to the s Brownfields Cleanup Revolving Loan Fund (BCRLF). The motion was duly seconded and carried unanimously. 4.2 Approve the Agreement for Exchange of Real Property (Exchange Agreement) between the Community Redevelopment Agency (CRA) and the ; authorize cash compensation to be paid from the CRA to the City in an amount not to exceed $301,303 funded from sales proceeds; and authorize the appropriate officials to execute same, together with all other instruments required to affect closing. The City and CRA s redevelopment strategy emphasizes the creation of a significant residential concentration in and around the downtown core, to create the support for a retail and recreation destination environment in the Cleveland Street District. In addition, the City s Economic Development Strategic Plan calls for the growth/support of employment opportunities as part of the CRA s Technology District and its software/information technology industry cluster. The CRA views the development of the Cleveland Street and Prospect Lake Park site as a major opportunity to further these strategies by adding a mixed-use project that activates the street and creates living opportunities for the District s workforce. The CRA released a Request for Proposals/Qualifications (RFP/Q) 12-13 on February 19, 2013 with the goal of selecting a qualified Development Team to successfully develop the 5.91+/- acre site located on Cleveland Street and Prospect Avenue in Downtown Clearwater, one block east of the Downtown Core. The successful proposal was submitted by Prospect Park Development, LLC (Developer). The proposal consists of 257 market-rate rental dwelling units and up to 24,000 sq. ft. of allowable ground floor retail. Approximately 7 of these units will be Live/Work units fronting Cleveland Street, which will be composed of a retail/office space and a residential component. The project will have 300 parking spaces and approximately 10,000 sq. ft. of accessory uses (exercise area, leasing office, and business center). On June 10, 2014, the CRA and the Developer entered into the Agreement for Development and Purchase and Sale of Property (Development Agreement). The Development Agreement requires that the CRA is, or will be, the owner of Page 4
the project site by the closing date. The City owns approximately 77,834 square feet of property (City Parcel) within the project site. The CRA owns approximately 3,829 square feet of property (CRA Parcel) that it will no longer need following the transfer of property to the Developer. The CRA Parcel is not located within the project site and is adjacent to City-owned property. The proposed Exchange Agreement stipulates that the City will transfer the City Parcel to the CRA and the CRA will transfer the CRA Parcel to the City. The City Parcel was acquired by the City with assistance of a grant from the United States Department of Housing and Urban Development (HUD). HUD will be reimbursed for a portion of this grant to remove any grant-related restrictions from the City Parcel. The reimbursement amount has not been determined, however, will not exceed $301,303 and will be confirmed by HUD after closing of the sale of the Prospect Lake Park development site. The CRA will transfer the appropriate amount to the City from these sales proceeds as compensation for the land transfer. The City will then provide reimbursement to HUD. In response to a question, Economic Development and Housing Director Geri Campos-Lopez said the strip of land not part of the transfer or part of the development of Prospect lake is 3,829 sq. ft. and will be part of the park. Trustee Polglaze moved to approve the Agreement for Exchange of Real Property (Exchange Agreement) between the Community Redevelopment Agency (CRA) and the ; authorize cash compensation to be paid from the CRA to the City in an amount not to exceed $301,303 funded from sales proceeds; and authorize the appropriate officials to execute same, together with all other instruments required to affect closing. The motion was duly seconded and carried unanimously. 4.3 Approve the First Amendment to Agreement for Development and Purchase and Sale of Property by and between the Community Redevelopment Agency (CRA) and Prospect Park Development, LLC (Developer); and authorize the appropriate officials to execute same. On June 10, 2014, the CRA and the Developer entered into the Agreement for Development and Purchase and Sale of Property (Development Agreement) in response to Request for Proposals/Qualifications (RFP/Q) 12-13. In summary, the mixed-use project consists of 257 market-rate rental dwelling units and up to 24,000 sq. ft. of allowable ground floor retail. Approximately 7 of these units will be Live/Work units fronting Cleveland Street, which will be composed of a retail/office space and a residential component. The project will have 300 parking spaces and approximately 10,000 sq. ft. of accessory uses (exercise area, leasing office, and business center). Page 5
As part of the site plan approval process, it became necessary for the Developer to request additional commercial entitlements to ensure that sufficient commercial square footage is available for both the retail uses and the Live/Work units. Therefore, the Development Agreement needs to be amended to reflect the change that the Project means the 257 residential multi-family dwelling units, including 7 Live/Work units, and appurtenant facilities and up to 24,000 square feet of allowable ground floor retail space. While the proposed design of the ground floor retail spaces and Live/Work units (Buildings A and B) have remained unchanged, the calculation of the allowable commercial space has been refined. The first amendment to the Agreement reflects this change throughout the Agreement. A second amendment to the Agreement includes language requested by the Construction Lender to clarify and amend the following: a) notice of default, b) a name and address to send such notices, and c) an additional 30 days, for a total of 90 days, for the Construction Lender to respond to the CRA s notice of default. The final amendment to the Agreement is a revised Proposed Site Plan. As part of the site plan approval process, the Developer needed to make adjustments to Building E, or the building closest to Martin Luther King, Jr. Ave. (MLK), in order to overcome safety concerns from nearby electrical transmission lines. In the best interest and marketability of the project, the project was redesigned to increase the building setback of Building E from 0 feet to 40 feet (45 feet from the transmission lines), reduce the height from three to two stories (approximately 41 feet to 29 feet in height) thereby reducing the number of dwelling units from 37 to 5. The 32 units removed from Building E were divided equally among Buildings C and D (total dwelling units in each building increased from 48 to 64) adding an additional floor to each building and increasing the height of the buildings (from approximately 37 feet to 58 feet). The total number of units in the project and general location/building footprints of Buildings C and D remain unchanged. The project site plan was approved by the Community Development Board on July 15, 2014. The anticipated closing date for the sale of the property is mid-august 2014. Trustee Hamilton moved to approve the First Amendment to Agreement for Development and Purchase and Sale of Property by and between the Community Redevelopment Agency (CRA) and Prospect Park Development, LLC (Developer); and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 5. Trustees Discussion Item 5.1 Multicultural Farmer's Market - Trustee Polglaze Page 6
AND 5.2 Farmer's Market Location (shift east one block on Cleveland St. from last location) - Trustee Polglaze Councilmember Polglaze said the multicultural farmers market was successful but concerned that discontinuing funding has negatively impacted staff s ability to engage the Hispanic community. He requested consideration to reinstitute the market. Councilmember Polglaze said Nature s Food Patch now supports event if the market is moved one block east, to accommodate overflow parking. In response to questions, Councilmember Polglaze said the CRA would initially provide a higher level of support. CRA Executive Director Rod Irwin said Pinellas County has applied for a grant for the multicultural farmers market. If there is an interest to pursue reinstating the market, staff will return with a budget and recommendations. Community Development Manager Ekaterina Gerakios-Siren said the Nature s Food Patch now supports the market if the location is moved one block east and the vacant lot is used for event parking. Although the proposed site is sloped, the market will be located in a fairly flat section. Mr. Irwin said the CRA budgets $6,000 for the Downtown Farmers Market (DFM). Ms. Siren said the DFM also receives $15,000 from the Downtown Development Board. If reinstated, the CRA would have to provide approximately $20,000 the first couple of years. There was consensus for staff to pursue reinstating the market and present the CRA with a proposed budget and recommendations. 5.3 Community Garden (site of former motel on Cleveland St.) - Trustee Polglaze Councilmember Polglaze said he discussed with members of the East Gateway regarding the possibility of a community garden at the Northeast corner of the Econo Inn site. After meeting with staff, he now understands that their desired location could interfere with future redevelopment and will relay the information. CRA Director Rod Irwin said there would be additional issues to address such as water service, security, and insurance. 5.4 Report from Ashville NC where there are three top grocery stores next to each other in the same block: Whole Foods, Harris Teeter, and Trader Joe s - Trustee Jonson Page 7
Councilmember Jonson said Whole Foods, Harris Teeter, and Trader Joe s in Asheville, NC operate within the same block with no apparent competitive issues. 5.5 CRA Monthly Project Status Reporting Request - Trustee Jonson Councilmember Jonson said during the last meeting it was suggested that staff provide monthly reports on the status of the department s work program. The City Manager said staff will meet to determine how the monthly status reports will be provided. 6. Adjourn The meeting adjourned at 1:51 p.m. Chair Attest Community Redevelopment Agency City Clerk Page 8