On the agenda

1. 1Call to Order - Roll Call▶ 0:00
2. 2

   Approval of the August 4, 2015 CRA Board Meeting Minutes

   approved

   The CRA Board approved the minutes from the August 4, 2015 meeting.

   • motion:Approve the minutes of the August 4, 2015 CRA Board Meeting. (passed)

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   [00:00:30] Very good. [00:00:31] Next item on the agenda is the approval of the minutes from the August 4th meeting. [00:00:40] Move for approval. [00:00:41] Second. [00:00:42] Motion second. [00:00:43] Any discussion? [00:00:44] No sir. [00:00:45] All those in favor please signify by saying aye. [00:00:46] Aye. [00:00:47] Opposed like sign. [00:00:48] Motion passes. [00:00:49] Next.

   This text was generated automatically from the meeting video. It is not a verbatim or official record. For exact wording, consult the video or the city clerk.

3. 3

   ↳You arrived here from a search for “Gildog at Port Richie” — transcript expanded below

   CRA Budget

   approved

   The CRA Board reviewed Resolution 2015-17 to receive $1,469,037 in tax increment funds and considered the CRA budget, including a $5 million transfer from debt service related to refinancing $11 million in CRA debt through the general fund. After extensive discussion, the board amended the budget to remove a $150,000 waterfront activity center placeholder and roll those funds into redevelopment incentives, which could be used for residential or commercial purposes. Discussion also clarified that the city would fund a Main Street director position but would not assume Main Street's debts or assets.

   • motion:Move for approval of Resolution 2015-17 incorporating the CRA budget into the city budget as a combined unit. (passed)
   • consensus:Remove the $150,000 waterfront activity center line item and roll those funds into the redevelopment incentives line (bringing it to approximately $600,000) for residential or commercial use. (passed)

   🏢Bank of America🏢Gildog at Port Richie🏢Greater New Port Richey Main Street🏢Main Street Landing🏢Market off Maine👤Crystal👤Deputy Mayor Phillips👤Director Phillips👤Director Starkey👤Mr. Altman👤Mr. House👤Ms. Manz#CRA debt refinancing ($11 million)#Highway 19 improvements#Main Street Program#Millage rate (9.5/9.585)#Parking garage capital project#Redevelopment incentives#Resolution 2015-17#Tax Increment Financing (TIF)#Waterfront activity center

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   [00:00:51] Ms. Manz, the CRA budget? [00:00:55] Yes. [00:00:59] You know, I'm not seeing the CRA budget. [00:01:04] We can put it up on the screen. [00:01:09] Is it not in the? [00:01:10] Oh yeah, it is. [00:01:11] It's an exhibit. [00:01:12] I'm sorry. [00:01:13] I didn't see it. [00:01:15] The recommendation from the staff is to approve Resolution 2015-17 and recommend that it be [00:01:24] incorporated into the budget as a combined unit as has been the case in past years. [00:01:33] The resolution for the Community Redevelopment Agency is to receive $1,469,037 in tax increment [00:01:44] funds. [00:01:47] The spending of which is outlined for you in attachment A to the communication of the [00:01:59] city staff dated September 9th. [00:02:05] And we're prepared to respond to any specific questions that you might have of us. [00:02:09] All right. [00:02:10] At this time I'll open it up for any public comment or questions. [00:02:14] Seeing no one come forward, bring it back to the board. [00:02:19] We'd entertain a motion to get this thing on the table. [00:02:29] Move for approval. [00:02:32] Do we have a second? [00:02:34] Seconded. [00:02:35] For discussion. [00:02:37] Thank you. [00:02:38] Director Phillips, if you'd like to lead off on the discussion. [00:02:41] Yeah, let me just make sure I walk back through this correctly. [00:02:50] I'm seeing a large transfer on the revenue, so like $5 million. [00:02:56] Can you describe for me, is this a balancing effort with regards to the CRA still operating as a debt service fund? [00:03:12] No, sir, not really. [00:03:17] Okay. [00:03:19] And what's the $5 million revenue line in the proposed budget? [00:03:26] Because it's brand new. [00:03:28] It hasn't been there the last couple of years. [00:03:30] I'm just trying to make sure that I clearly understand that. [00:03:33] And then I do have some questions about the operating budget side. [00:03:37] Director Phillips, what line are you on? [00:03:39] Very good. [00:03:40] On the revenue side, we've got the exhibit here, we've got this one, [00:03:48] and I've got a second budget that I got when I got here tonight. [00:03:51] But if you come down to 15-16, you've got ad valorem tax revenue of $643,000 at the top. [00:03:59] Right. [00:04:00] And then as you drop down where it says transfer from debt service fund proceeds, $5,029,000. [00:04:09] Right where I'm looking. [00:04:12] To respond to the $5 million first, I guess I would ask you to look at the capital improvement plan, [00:04:21] which indicated that there were to be commercial area improvements, [00:04:27] and also within the budget there are redevelopment incentives. [00:04:36] The $5 million ends up as being retained by the CRA. [00:04:44] Really, this is a request by the CRA for the general fund to provide them some additional cash [00:04:53] in order to accomplish capital improvements over the next few years. [00:04:58] It is part of the request by the CRA to have the general fund provide relief from the debt. [00:05:06] So, Director Phillips, in terms of it is related to, [00:05:11] but it isn't directly associated with the payment of the $11 million in indebtedness [00:05:17] that the CRA will inherit in its budget at the beginning of the year. [00:05:21] So, what the CRA has asked is that the city government and through the city council [00:05:29] would refinance the $11 million and would like to have some additional funds to assist it [00:05:36] in providing the incentives to complete some projects to include the parking garage, [00:05:45] which would be planned for the city's town. [00:05:49] Let me try to say that one more time. [00:05:54] In 2014, in fiscal 2014, the general fund paid off one of three notes. [00:06:01] That note, and you all will recall, had a balance of about $7 million that was paid on behalf of the CRA. [00:06:11] There are two notes that remained and those two notes were pledged fully by the CRA [00:06:18] and the conditions of those notes with Bank of America were such that the CRA effectively [00:06:25] was stymied from offering incentives or functioning as a CRA. [00:06:30] So, the plan in 2014 was to shift the indebtedness to the city's general debt service fund [00:06:38] and have the total indebtedness of the CRA be channeled through the non-ad valorem taxes of the general fund. [00:06:47] In other words, the general fund acting as the sponsor or the cosigner, for lack of a better word, [00:06:54] of the indebtedness to free the CRA from any conditions that would stop it from being able to make future plans. [00:07:05] The $5 million is in excess. [00:07:08] It's a request effectively saying, hey, help me to pay off this indebtedness and I'll pay that money back, [00:07:15] which is factored into the budget over a more extended period or under more favorable terms. [00:07:22] And by the way, we have a pending agreement to provide incentives. [00:07:27] I believe the Main Street landing is going to require some incentive money. [00:07:31] And, of course, the key, Director Phillips, is the parking garage. [00:07:36] That's what the money is there for, a million and a half the first year and a million and a half the next year, [00:07:41] so you could move forward with a parking garage. [00:07:43] The CRA doesn't have the ability to raise funds [00:07:46] and it doesn't really have the ability to continue to manage both of those debts in its budget and still function. [00:07:55] Okay. [00:07:59] I think it's a little clear. [00:08:01] I'm just trying to obviously the budget, once again, [00:08:06] predicated on us taking steps within this next calendar year to refinance our existing debt, [00:08:14] as well as to take on additional debt as a way to move the capital project budget forward. [00:08:23] And, again, the CRA is acting as some kind of a conduit into that process. [00:08:28] That's my understanding. [00:08:29] Is that fair? [00:08:30] Okay. [00:08:31] Yes, sir, and I think just to close the circle there, [00:08:34] if I could direct you all to the budget to the part that shows the payment of debt service. [00:08:40] And if you look on the estimate of 2014-15, you'll see that the debt service of the CRA was $1,362,101. [00:08:48] Right. [00:08:50] And most particularly about $850,000 that was in principal payment. [00:08:56] So the ability to refinance and effectively find the CRA in a different pattern, [00:09:06] sort of sponsored by the parent entity, is the plan. [00:09:13] Okay. [00:09:14] All right. [00:09:15] That's one. [00:09:17] Just so I can be clear, we're taking over the operations of Main Street, correct? [00:09:26] That's what that salary, is that what that salary shows there? [00:09:29] Yes, it is. [00:09:30] Okay. [00:09:31] And we're taking over a 20-year entity. [00:09:35] Are we getting any assets at all? [00:09:37] And is there going to be a subsequent budget element down the road where we're writing off other expenses [00:09:44] that were not collected when we took over the entity? [00:09:47] I want to be clear about what we're taking on. [00:09:54] And I don't have any other way to step around it anymore. [00:09:57] I've got to ask it straight out because I want to be clear when I vote [00:10:03] and when I make my vote that I understand what we are doing. [00:10:08] And, you know, if the entity we're taking over that's been in existence for however many years, [00:10:15] if it has assets, where are they? [00:10:18] Were they reflected in the city taking over this? [00:10:21] And or are they just having the ability to garage sale that out? [00:10:26] And does that entity still owe the city any money? [00:10:30] Like I said, I don't want to see a budget amendment come in at the end of the year [00:10:37] and not be aware of what we are truly trying to achieve and trying to move forward. [00:10:46] So I know that's a series of my own five or six questions, but that's what my concerns are. [00:10:55] Ms. Manns, I think I've got a different view of what we're doing with the Main Street Program from Director Phelps. [00:11:05] Could you clarify that? [00:11:06] Because one of us, I think. [00:11:09] Well, in response to Deputy Mayor Phillips' questions, [00:11:14] we won't be accepting any debt that the Main Street Organization may currently have, [00:11:23] nor am I aware of any assets they have that they'll be turning over to the city. [00:11:29] The way this has been contemplated to occur is that we will take over at the beginning of the fiscal year, [00:11:40] if you allow us to do so. [00:11:43] We will only be funding a position. [00:11:45] We won't be funding any of their operating expenses or any of their existing debt. [00:11:52] So how are we taking over then? [00:11:54] That's my point. [00:11:56] We're not actually taking them over. [00:11:58] We're assigning a city employee to head it, basically. [00:12:02] To serve as the director of the program. [00:12:05] I wouldn't. [00:12:06] I don't see that as us taking over Grady-Neperitchi Main Street. [00:12:09] The organization, I'm presuming, continues to exist as their own independent organization, as they've always been. [00:12:18] That's correct. [00:12:21] We're simply directing, my understanding is we're looking to put a city employee [00:12:30] as responsible for implementing the national Main Street sectors. [00:12:36] That's correct. [00:12:38] I think it's been a long time since I've been involved in that organization, [00:12:43] other than from what I understand now. [00:12:46] But if you went to a Main Street program conference, [00:12:50] you would find a split between staff members and private members. [00:12:55] So this has been a privately manned leadership. [00:13:00] And I think it's just a matter of the city wouldn't be accepting membership fees [00:13:05] or getting involved at all with the membership or any of the activities of the organization, [00:13:09] as I understand it. [00:13:11] Thank you. [00:13:13] I think that anywhere from 40 to 60 different cities, they're managed differently. [00:13:21] But there are some cities that fund the position of the executive director. [00:13:28] But in all other respects, it's a nonprofit organization, and it manages the four key points. [00:13:35] It moves forward with whatever initiatives that they have in place in terms of the four groups, [00:13:43] the economic restructuring, design, promotion, and membership. [00:13:50] And it's just how each city determines how they want to manage that program. [00:14:02] In addition to the funding of the position, some cities do it as a W-9 contracted employee. [00:14:12] Some do it as an employee, a city employee. [00:14:16] As many cities as there are, it can be done. [00:14:19] It was my understanding as well that it was going to be a funded position, [00:14:24] but that the organization was going to continue to work under the four programs. [00:14:32] I think that they're at a point right now where they're working very closely with development director, [00:14:37] as well as, you know, following the tenets of the program. [00:14:49] No, I mean, I agree with your point. [00:14:51] I just want clarification, or just even for public knowledge as well, [00:14:55] is that we're not taking over Greater New Brunswick. [00:14:58] I just don't like that term, taking over. [00:15:00] Just assigning an employee to lead it, that's the way I interpret it. [00:15:04] Not even lead the organization, but lead our participation in the Main Street Program, [00:15:09] which is separate and distinct from the Main Street Corporation, [00:15:15] Greater New Port Richey, Main Street, and their freestanding non-profit. [00:15:22] And my last point is, I see no net benefit of spending $150,000 [00:15:31] on this waterfront activity center, because my overall question that I have for you, [00:15:36] Mr. Altman, is what does it take in looking at this budget for us? [00:15:44] We obviously set the millage rate at 9.5, or 9.55, or 9.585, whatever it was. [00:15:52] What does it take from us, as on the CRA board, and then eventually as council people [00:16:01] with a different hat, to be able to look at this budget and drive [00:16:08] to where we could come in at 9.3? [00:16:11] What dollar amount would it be for us to be able, at the end of the process, [00:16:17] over our next two meetings, to come in with a budget that does X and Y [00:16:22] and allows us an opportunity to look at taking our millage rate down? [00:16:33] Is there a magic number? [00:16:35] Yeah, there sure is, and I think what I'll do, I'll probably ask Crystal [00:16:40] to look into her crystal ball there and find just the total value of the city [00:16:47] for tax purposes was $500, and then we need to multiply that times $1 per thousand [00:16:57] and, you know, knock that down. [00:17:01] Because I'd like to look at the, I'd like to have that in the back of my mind. [00:17:07] I may not get there, but I have two other meetings before the 23rd [00:17:12] till I have to say this is the best and final. [00:17:17] And to me, I've seen no compelling argument why we'd have $150,000 [00:17:23] about a waterfront activity center. [00:17:25] I would much rather, if we were going to utilize those dollars, [00:17:28] I'd like to utilize them in other ways, because I haven't seen, [00:17:33] from the Community Redevelopment Authority, I still don't see it in this budget. [00:17:37] I still don't see it as a director of this department or of this entity where, [00:17:44] when the CRA is benefited by tax dollars from the entire city, not just downtown [00:17:51] and not just the business core, that I don't see it in here. [00:17:55] I see these redevelopment incentive grants. [00:17:58] I see this $5 million that we're going to go out and refinance [00:18:01] so we have TIF dollars and everything else. [00:18:04] I do not see where we are trying to raise the water level of our residential properties, [00:18:11] because that's going to have as much or more impact [00:18:15] than raising the commercial property values in this entity, [00:18:20] because we get to get those dollars across the board. [00:18:23] So in my mind, it's short-sighted on my behalf if I don't ask those questions [00:18:31] and if I don't strive to do two things at the end of the day, [00:18:34] raise the property values and the CRA value, [00:18:36] because that's how I get more discretion over those dollars, and I do ad valorem, [00:18:40] and number two, that there's the ability to balance our approach throughout the city [00:18:48] when it comes to raising those values, because every time those go up, [00:18:53] I even heard Mr. House tell me one time in a conversation, [00:18:57] he'd love to come back and tell me at some time in the future [00:19:00] that we've raised property values so much that he has to pay us too much taxes, [00:19:04] and I laughed at him and said, you know what? [00:19:06] I look forward to that day that you're having to pay me more tax dollars [00:19:09] and tell me that we've done enough things to do that. [00:19:12] So in my mind, I'm just trying to make sure, [00:19:16] because this budget here drives a lot of other things, [00:19:20] and when you put that TIF money in here, [00:19:22] it becomes an open-ended pocket that everybody wants to come in and say hello to. [00:19:27] Mr. Allman, is there a line item, it may be in the regular budget [00:19:33] as opposed to the CRA budget, that talks about the residential grant program? [00:19:38] Yes, I mean, there's funding, and it's within the development services funds, [00:19:44] but if I may respond to the larger question just briefly, [00:19:51] and I'm watching the clock, I know we have another meeting coming up, [00:19:54] it would be no, there would be nothing wrong with removing that item [00:19:59] or having this body amend its motion to remove it from the budget [00:20:04] until such time as a viable plan came up, [00:20:07] and I think that's what I've heard before, which is, you know, there's talk, [00:20:11] but when it comes to advancing the residential base of the downtown [00:20:16] and all the discussion that's been had about the downtown itself, [00:20:21] you know, one of the suggestions by the early discussions with financial folks is, [00:20:26] you know, maybe if you extend the life of the CRA either at whole or in the downtown, [00:20:33] it would allow you to concentrate the dollars that are earned in that area [00:20:37] to what comes from there and reallocate debt, [00:20:40] so that the residents of the town who live outside the downtown [00:20:44] would fairly not be assessed or charged or have to pay that portion. [00:20:50] Well, let me take Director Phillips' comments maybe a step further [00:20:56] in a slightly different direction, and understand I'm not as interested [00:21:01] in changing the miller's rate this year as perhaps I will be next, [00:21:07] but we're at a choice between putting $150,000 into what I would consider [00:21:13] a fairly speculative pot for a waterfront activity center. [00:21:21] If that money were going into residential area improvements, [00:21:27] call it residential grants or something else, [00:21:32] I'd be much happier seeing the money go there personally. [00:21:37] Director Starkey. [00:21:38] As far as this waterfront activity center, I mean, I think it's something [00:21:42] in the future we would like to have, but having it in this budget, [00:21:45] to refresh my memory, I mean, are we planning on starting this [00:21:48] within the next 12 months? [00:21:49] Well, I think when you say... [00:21:50] Or are we just budgeting in case we decide, oh, now's a good time [00:21:52] or a piece of property opens up that would work for us? [00:21:56] Well, as an example, when you say at this time, I don't think at this time [00:22:00] there's intentions for the large project that was exposed to [00:22:03] by the Olympic athlete... [00:22:04] I'm not even talking about any of that. [00:22:06] But from the discussions of only a few weeks ago when it was like, [00:22:09] where would it be and how could it help the dynamics? [00:22:12] And just about every document you read going back 20 years talks [00:22:15] about our river, and the city council in their last discussion [00:22:19] talked about it. [00:22:20] This is just a placeholder to allow for discussion. [00:22:24] For example, the market off Maine just moved, and I think that site [00:22:27] was even identified as a potential site. [00:22:30] The owner of that site may be interested in talking to the city [00:22:33] about moving forward with the development plan. [00:22:36] If he did, then there could be some development effort that could be [00:22:40] done there in some kind of getting that property into the public domain. [00:22:45] The discussion with Main Street Landing was it would be nice if there [00:22:48] was more waterfront or look at these other places. [00:22:50] So $150,000 is not something that ought to probably create a lot of debate. [00:22:57] Putting something out there for residential would probably be a good move. [00:23:01] There's enough money in the CRA budget if, in fact, the city council does fund it [00:23:06] the way it's asked, that's for future incentives, that if something came [00:23:10] along and somebody says, I'm going to put $10 down, if you'll put $1 down, [00:23:14] that you have the ability as a CRA to entertain it. [00:23:17] So I think it, you know, I would recommend that you might follow the course [00:23:22] of action of the chairman if you would like. [00:23:24] It doesn't mean you're not going to do a waterfront activity, but it does maybe [00:23:28] speak to your priorities at this time until you get a solid plan together. [00:23:34] I guess that's my concern, is it's nice if we have the money to budget it, [00:23:37] but I don't see any time in the near future we're going to slop up a piece [00:23:42] of property on the river and build some in the next 12 months. [00:23:44] So what does it need to be in there for this budget, I guess? [00:23:49] I might, OK. [00:23:50] Director. [00:23:54] If there is money in the development director's funds for the residential, [00:24:00] I don't know what the dollar amount is, but I also would think that, [00:24:05] I don't know that we necessarily need a placeholder of $150,000. [00:24:08] I think if we wanted to have that conversation, we could start the conversation [00:24:12] without having a placeholder there necessarily. [00:24:14] And even the good folks that own the property on, that market off Maine just exited, [00:24:22] my thinking is that they're, again, to have a conversation with them, you know, [00:24:27] we would probably be looking at next year's budget to make any incentives with that. [00:24:33] I'd like to know what the residential monies are in the development fund. [00:24:40] If they're substantial enough, then I would say in light of what we're attempting to do [00:24:45] with the entryway to our city, the improvements on Highway 19, I would just as soon see [00:24:53] that rolled into the redevelopment incentives. [00:24:58] My second thought would be, or my first thought would be, [00:25:01] depending on what the amount of money is in the development director. [00:25:05] I think that gives you a lot of leeway because redevelopment incentives can be residential [00:25:10] or commercial, whatever they turn out to be. [00:25:12] And they also don't have to be downtown incentives. [00:25:14] They can be incentives on some of these other areas that you've talked about as well. [00:25:18] So the $450,000 that's in here on redevelopment incentives, [00:25:22] if we were to load that $150,000 onto that, we could use it as residential or commercial. [00:25:29] Yes. [00:25:30] Just another point on the waterfront, too. [00:25:32] I mean, who's to say a private entity is not going to want to come in [00:25:35] and build a waterfront activity center like Gildog at New Port Richey as well? [00:25:39] I mean, I'm just not sure it's the city's place to build a kayak rental shop and a beach shop. [00:25:43] I mean, personally, I just think that would be more of a venture for a private entity. [00:25:48] So I'm okay with going this direction. [00:25:52] Yeah, I just, you know, this really is the only time we get to talk about it. [00:25:57] So I mean, and once again, I say that we get to talk about it, but we do it up here on the dais. [00:26:06] And that way, we really don't get, in my mind, substantial flow of free thinking and everything by sitting up here [00:26:14] because we have to be much more proper. [00:26:18] We can't just throw ideas around because that's where you get your best thoughts in a lot of ways. [00:26:25] Because Jeff would throw something out about, Mr. Starkey would throw it out about that property, [00:26:32] and we talk about some others. [00:26:33] I'm just saying, in my mind, that the message that I want to present across the board [00:26:43] is that we have a very balanced plan, that we have a balanced approach. [00:26:48] Because the majority of this money that comes into the CRA comes in from the residential. [00:26:55] And to me, incrementally, you could make it 50, you could make it 150, [00:27:01] but I really believe now is the time to do something so that if we have to compete for something else, [00:27:08] we show that our approach is to go on multiple levels so that we don't get disqualified [00:27:14] because we don't have something that we didn't do, and we can't back up and do it. [00:27:21] That doesn't make, I know it's not clear, but what I'm saying is if we're competing for something [00:27:25] and we haven't balanced our approach on everything we do within the city, [00:27:29] it does give people the ability to disqualify you. [00:27:32] And that's where my biggest thing is, because I think there's going to be some competitions in the future, [00:27:39] and I don't want to be disqualified because we concentrated more on one element than the other. [00:27:46] And I think if you incrementally build those, I think it comes back too full, I believe. [00:27:53] So those are my thoughts, and I don't mean to drag it out, but the CRA budget [00:27:58] is really where you have a multitude of discretion or community-based dollars [00:28:04] that you can spend that ad valorem dollars don't allow us to do. [00:28:09] It can go from community policing, it can go from libraries to recreation, to all of those things. [00:28:14] And to me, this is kind of the gateway into all of those other things that you want to do [00:28:22] that your ad valorem dollars are really tied tight with. [00:28:25] So like I said, I don't mean to belabor it, but I just think it's really important, [00:28:29] and I don't want to understate it. [00:28:31] I understand. My understanding is tonight, though, we're adopting a budget for the CRA, [00:28:38] which is certainly subject to being modified at some point down the road. [00:28:49] Derek Phillips, I would have no problem whatsoever if we took that line 63-43 [00:28:56] and just stuffed it into 49-52, with the idea that a significant part of that total [00:29:06] then needs to be available for the residential stuff. [00:29:09] Fine. I'm okay with that. [00:29:11] If you'd like to... [00:29:12] So in my motion to approve, I would amend it to remove line 63-43 [00:29:22] and move that $150,000 to line 49-52 under the redevelopment incentives. [00:29:33] With the understanding that it can be used for residential incentives. [00:29:40] I would second that. [00:29:44] Director Starkey, any... [00:29:46] No further comment. Thank you. [00:29:50] If there's no further discussion on it, all those in favor, please signify by saying aye. [00:29:54] Aye. [00:29:55] Opposed, the mic's on.

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4. 5Adjournment▶ 29:56
5. 4Communications