On the agenda

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

   Approval of the May 2, 2017 CRA Minutes

   approved

   The CRA Board approved the minutes from the May 2, 2017 CRA meeting.

   • motion:Approve the May 2, 2017 CRA minutes. (passed)

   #May 2, 2017 CRA Minutes

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   [00:00:20] Next item is the approval of the May 2nd CRA minutes. [00:00:25] Move for approval. [00:00:27] Second. We have a motion and a second. [00:00:30] Any discussion? [00:00:32] Hearing none. [00:00:33] All those in favor, please signify by saying aye. [00:00:35] Aye. Aye. [00:00:37] Opposed? [00:00:38] Flag sign. [00:00:39] Next, business incubator lease.

   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

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   Business Incubator Lease

   approved

   The CRA Board discussed a proposed three-year lease extension with MyNetworkOne for the business incubator building (former old post office), at $3,000/month with 3% annual increases, including a first right of refusal and continued city access to the conference and classroom. After extensive discussion about lease terms, insurance, signage, square footage rate, and the impact of the Starkey project on property value, the board moved to approve.

   • motion:Move to approve the three-year lease extension with MyNetworkOne for the business incubator at $3,000/month with 3% annual increases. (passed)

   📍6345 Grand Boulevard📍Main Street Landings🏢Chamber of Commerce🏢Greater New Port Richey Main Street🏢Historic Society🏢MyNetworkOne🏢Pasco County Economic Development🏢Race Face TV🏢USF👤Councilman Phillips👤Deputy Mayor Starkey👤Mr. Bell-Thomas👤Mr. Driscoll👤Mr. Iazzoni👤Mr. Starkey👤Ms. Manns👤Rod Wortham#Business Incubator Lease#Church property acquisition ($3.1 million)#Section 23 sale clause#Section 3C renewal clause#Starkey project

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   [00:00:41] Ms. Manns? [00:00:42] Sure. Mr. Mayor, the, as you know, the city is currently [00:00:48] in a lease agreement with MyNetworkOne as it relates [00:00:54] to a portion of the former old post office in the building, [00:01:00] which is commonly referred to as the business incubator. [00:01:05] They are interested in an extension [00:01:10] to the term of their lease. [00:01:13] And Mr. Iazzoni, in his May 16th communication, [00:01:19] indicated the terms of the lease, which are as follows. [00:01:25] A three-year period of time. [00:01:27] $3,000 monthly rent increasing 3% in the second [00:01:32] and the third year of the contract. [00:01:35] A first right of refusal [00:01:37] on the property should the CRA determine it's appropriate [00:01:41] to sell the incubator. [00:01:43] And lastly, the city has asked to continue its use [00:01:49] of the conference room and classroom upon request. [00:01:53] With those terms, the annual revenue to the city is $36,000. [00:02:01] And it includes the elimination [00:02:04] of the utility costs currently associated [00:02:07] with maintaining the building. [00:02:09] With that, the CRA, the economic development director, [00:02:15] is recommending to us that we consider approval of the lease. [00:02:18] We'll open it up for public comment. [00:02:21] Seeing no one come forward, I will bring it back [00:02:24] to the CRA board. [00:02:27] What's the square footage just of the building? [00:02:28] I didn't see any lease. [00:02:30] It's 9,000 square feet. [00:02:32] 9,000 square feet. [00:02:34] What's the amount of square feet that we'll still have access to? [00:02:38] We're maintaining that office for about three months [00:02:44] and then they'll have full access to the building. [00:02:47] We'll be available to the classroom upon scheduling [00:02:52] with them and the conference room. [00:03:01] Entertain a motion? [00:03:02] If I could just ask a question. [00:03:06] Sure. The lease agreement indicates, [00:03:09] I think it's the fourth bullet on the memo or the cover letter [00:03:17] that the city would have access to the conference room. [00:03:21] But is that, that's not just part blanche. [00:03:24] I mean, is there, should there be an addition to that [00:03:28] which would indicate, you know, when it's available? [00:03:31] Or is it just available to us when we need it? [00:03:36] It's pretty much been available to us whenever we've needed it. [00:03:40] We've never had a problem in the past whatsoever. [00:03:46] They've been really accommodating. [00:03:47] We try to work with anything that they have in terms of, [00:03:51] that might be a priority to them. [00:03:54] But in the past year since we've been working with them, [00:03:56] there really has never been an issue in terms [00:03:58] of scheduling whatsoever. [00:04:00] And we don't expect that going forward. [00:04:03] Okay. And then the other thing is, I mean, ironically, [00:04:08] with us approving the Starkey project, it's almost, [00:04:13] I'm thinking that the success of that project will have a direct [00:04:18] impact on potential value for the rent on that property. [00:04:25] And so I'm not sure if, you know, a three-year lease, [00:04:29] that's almost, I'm trying to figure [00:04:34] out the dollar amount per square foot. [00:04:37] But that's really not very much. [00:04:39] I would think that in and of itself would generate an [00:04:43] additional, an increase. [00:04:45] So I'm not sure that a three-year lease, [00:04:47] although I appreciate, [00:04:49] typically would appreciate having a longer lease, [00:04:53] I think that's something that we really need [00:04:55] to pause and think about. [00:04:58] Also, is it our intention then [00:05:01] to eliminate the front office after September, [00:05:05] which is presently being occupied [00:05:06] by the Main Street organization? [00:05:10] That's correct, because the business is growing considerably [00:05:12] in there, and we'd need that space based on the fact [00:05:15] that I think there are up to 13 employees at this point in town [00:05:19] and could grow more and continue to book additional deals. [00:05:23] Okay, which then also comes back to the availability. [00:05:29] I know that over the last couple of weeks, [00:05:34] it has presented a problem where that area is not available [00:05:38] because they've booked it for their, which, you know, [00:05:41] it's understandable, but so I'm wondering if that may, [00:05:45] what part of that is important to us [00:05:48] as a city having access to that property? [00:05:51] I mean, the conference room and the classroom. [00:05:55] It hasn't been a problem at all. [00:05:58] I think Mr. Wortham can kind of talk a little bit more [00:06:00] about regarding that, but they've been, I mean, [00:06:04] one of the things we've talked [00:06:05] about is the CRE meetings, having the CRE meetings there. [00:06:08] We've already discussed that, [00:06:09] and that will be made available to us. [00:06:11] They've been exceptionally accommodating. [00:06:14] It's always been designed as a facility that's been open pretty [00:06:17] much for organizations that kind of need [00:06:20] that, you know, it was originally designed [00:06:24] as a business incubator where we actually kind of facilitated [00:06:27] that, and this business has grown considerably. [00:06:29] Considerably, what we've been trying [00:06:30] to do is recapture the cost and the investment the city has [00:06:34] and to the point to where it does become a value for the city [00:06:38] to the point where council decides to move forward [00:06:41] in another direction with facility. [00:06:43] We're trying to, simply trying to recoup a lot [00:06:45] of costs we have in that. [00:06:46] We're trying to take a building that's been a long time vacant [00:06:49] and absent. [00:06:51] My Network One has put quite a bit of their own money [00:06:54] and sweat equity into the building, and, you know, [00:06:59] they are a technologically driven company. [00:07:01] They do work with a lot of millennials. [00:07:03] They have a lot of activity going back and forth there, [00:07:05] so it serves to facilitate basically driving additional [00:07:09] downtown traffic also where we've had that conversation [00:07:12] where business owners need additional business, [00:07:14] and that's really been pretty much the goal of the incubator, [00:07:17] and they've requested a three-year lease [00:07:19] because they've made considerable investments [00:07:21] into their business. [00:07:25] Thank you. [00:07:26] Does Greater Newport, have they been notified that they're going [00:07:29] to have to find new office space? [00:07:31] No, they have not. [00:07:33] We don't have a lease yet. [00:07:35] I, yeah, I'm fond of Mr. Wertham. [00:07:39] I used to be in the real estate business, [00:07:41] so very much appreciate the lease agreement, [00:07:44] but it didn't touch on all the things [00:07:47] that I thought are important to the city, [00:07:51] and should be important to you, by the way, [00:07:53] and your business operation. [00:07:56] First of all, obviously, we're doing the lease at this point 16 [00:08:01] or 17 days after expiration, start on May 1st. [00:08:07] I agree with Mr. Bell-Thomas that, you know, [00:08:10] a 3% increase every year [00:08:13] for the next three years really is a sweetheart deal, [00:08:19] in some ways. [00:08:20] The other is, is there was a clause in this lease [00:08:23] under Section 3C, where it says compensation [00:08:26] for any renewal term shall be negotiated at time of renewal. [00:08:30] That left me questioning, does that mean we go back [00:08:34] and get a chance to renegotiate? [00:08:36] Does that open the pages up to us? [00:08:38] And I was understood from my conversation at noontime today [00:08:41] with Mr. Iazzoni and Ms. Manns [00:08:44] that Mr. Driscoll might have some insight into that for me, [00:08:48] what the phrase means, because to me, it almost means [00:08:53] like you got a lease, but under the renewal, [00:08:57] if you decide to renew, we get a chance to reopen, [00:09:00] so it really is a one-year deal. [00:09:02] No, it's actually a three-year lease. [00:09:04] That's renewal after three years. [00:09:06] For any future renewal terms would be negotiated [00:09:12] at the time, but it doesn't say that. [00:09:14] It says any renewal term. [00:09:16] So if you exercise your 30 or 90-day clause, [00:09:19] you're going to renew. [00:09:20] To me, that's what triggered that. [00:09:22] That's here or there at the moment. [00:09:25] The other is a site plan that they put together for this lease. [00:09:29] I am not in favor of it, because first of all, [00:09:33] it doesn't clearly define areas. [00:09:36] It says we have the ability to use the conference room, [00:09:42] but if we got into an adversarial aspect, [00:09:47] you could almost tell me, yeah, you can use the room, [00:09:49] but you can't use the restrooms down the hall, [00:09:51] because the lease doesn't give you the right to do that. [00:09:53] Not that you would, but I'm telling you, [00:09:55] the document doesn't say that. [00:09:58] The other is, as we talk about signage, I think that we ought [00:10:01] to push from the city and from your side to put a sign [00:10:04] out in the middle of the landscape area. [00:10:06] But we give authorization for doing the signage back [00:10:08] to the development department. [00:10:10] It doesn't come back to the CRA. [00:10:11] It doesn't come back to the directors. [00:10:13] So in essence, you know, you get a chance to do it. [00:10:18] We don't have anything to say about it. [00:10:19] I think if there's a shared situation. [00:10:23] The other thing that really concerns me is we're asking [00:10:27] to have access to the conference room, which means we're going [00:10:32] to be inviting people onto your property. [00:10:36] And with that, we are asking you [00:10:38] to provide all the insurance coverages. [00:10:40] Nothing in this lease says that we've got coverage, [00:10:43] that we're doing a reciprocal element that protects you [00:10:49] from the invitees that we bring in. [00:10:52] To me, as much as I would love to be on your liability [00:10:57] or risk element, I don't know that I want you to take [00:11:01] that on in being, giving us access to the space. [00:11:05] That concerns me there. [00:11:07] And so, you know, those elements alone and the bigger question is [00:11:13] to me, and Mr. Bill Thomas talked about it briefly, [00:11:16] is that with Mr. Starkey's development, [00:11:18] it's going to make this property go up. [00:11:21] Well, I'm of the opinion as a director on this board, [00:11:25] because the director here and the mayor of the city has pointed [00:11:30] out that I want to get out of the real estate business. [00:11:33] And I've wanted to get out of the real estate business [00:11:35] for a while, because this parcel was part of the church property, [00:11:39] which we paid a $3.1 million fee for. [00:11:45] I think at the same time we do this lease, that we at least go [00:11:48] out and investigate what the value of this building is. [00:11:51] Because I personally would like to see you own the building. [00:11:56] I would like to give you the opportunity to expand the use [00:11:59] of that building, whether it's vertically or however. [00:12:03] But I also want to be able to take that money and reinvest it [00:12:06] into other elements that the CRA and the city is going [00:12:10] to need to do downtown. [00:12:12] And that has to do with parking, [00:12:14] has to do with other aesthetic elements. [00:12:16] And so with that, we give you first right of refusal. [00:12:19] I just think that it's in our interest to find [00:12:23] out using whatever cap rate is in the real estate market now [00:12:27] to figure out what it's worth. [00:12:30] Because I really like your operation. [00:12:34] I think I'd love for you to be the, and I use this, the pinky [00:12:40] or the small toe or whatever, what ESPN was, [00:12:44] and use downtown New Port Richey as the draw for that. [00:12:47] And we've given you the platform to do that. [00:12:50] And I would love for you, I would love for your organization [00:12:52] to own that building, to be prominently displayed [00:12:56] and to be able to draw your business model, your millennials, [00:13:00] all those things, because I don't know [00:13:02] that it gives the right impression to have a lease [00:13:05] that you might go away and we're building millennial housing [00:13:08] down the street or at Main Street Landings, [00:13:10] and all of a sudden you go somewhere else. [00:13:12] I don't want that to happen. [00:13:14] I want your footprint. [00:13:16] I want your operation to be on Orange Lake. [00:13:19] So those are the things that I saw in this document, [00:13:22] whether it protects your interests or ours, [00:13:24] I just think it's a shared liability and I want to make sure [00:13:27] that we're all on the same page. [00:13:30] So those are my concerns. [00:13:33] Please. [00:13:33] I guess I need to state my name again, Rod Wortham, [00:13:41] owner of my number one 6345 Grand Boulevard. [00:13:46] It is definitely my intention and my wish [00:13:49] to eventually purchase that building. [00:13:51] As of right now, for some that have not been into it, [00:13:55] I've invested over $100,000 of my own money inside [00:13:58] of that building, just in the cosmetic sides of it. [00:14:01] So if you haven't been in, I encourage you [00:14:03] to come down and take a look. [00:14:04] From the standpoint of being able to have the conference room [00:14:10] and or the training room available for the city [00:14:13] when they want to use it, I can only think of one occasion, [00:14:17] and I think that had to do with the pregnancy center [00:14:19] that needed it when we had a special two-day event scheduled [00:14:23] that we were not able to accommodate that. [00:14:27] Currently, to let you know what our goal is, we've moved [00:14:32] in a little bit of a different direction, Councilman Phillips, [00:14:35] since you were there. [00:14:36] I mean, our goal right now is 100% doing two things. [00:14:41] We work with small business owners every day as a place [00:14:44] for them to come to be able to get everything that they need [00:14:48] to market their business under one roof. [00:14:51] Last month, we saw 223 different business owners inside [00:14:55] of our facility. [00:14:56] Three times a month, we put on free... [00:15:00] workshops that are open to any business owners in the area to come in, learn about social [00:15:04] media, learn about, you know, text messaging, podcasting. Currently, right now, we're doing [00:15:11] eight live television shows that are substantial, especially our Race Face TV show, which is [00:15:18] basically being viewed around the world. Every single thing that we do there, at the very [00:15:23] end of every single episode that we do, there's a tagline in there that says, thank you to [00:15:27] the city of New Port Richey. So, we believe that we're getting New Port Richey out there. [00:15:34] Probably 75% of the business owners that visited us last month were business owners not from [00:15:39] this area that are coming downtown to look at it and say, wow, I had this preconception [00:15:45] of what New Port Richey was all about, but this is really pretty nice. So, I think from [00:15:49] that aspect, we're really doing some good things. We have nine full-time employees, [00:15:54] two part-time, two interns, and we have 11 account executives that are scattered now [00:15:58] from Sarasota up to Brooksville. All of them are business coaches and what their goal is [00:16:06] is to bring business owners into our facility. So, our goal is not just about growing MyNetworkOne. [00:16:13] Our goal really is about helping to grow the city. And again, we see these business owners [00:16:18] every day and we know that they're lacking the new way to be able to advertise their [00:16:24] business. That's why many of them are struggling. But, as far as the building is concerned, [00:16:29] there's nothing more than I would like to put our feet in the ground there and to purchase [00:16:34] that building. That is our intent, if we're offered that opportunity and of course, if [00:16:39] the price is agreeable. But, I mean, I'm here for the long run. I'm 57 years old. The kids [00:16:46] that I have, I call them kids. I've hired kids in here to make sure that they're able [00:16:50] to take this business over and then, you know, maybe I can enjoy a few years of my life just [00:16:55] coming in every once in a while. But, that's kind of what our mission is there. And again, [00:17:02] for any of you that haven't been in lately, I think if you come in, you will be absolutely [00:17:07] surprised at what you see. [00:17:10] Thank you. I will defer to Deputy Mayor Starkey on issues of insurance that Councilman Director [00:17:22] Phelps brought up. I'm not as concerned about the three-year term and the fact that the [00:17:33] lease is fixed during that period because the very last section, Section 23, says that [00:17:39] tenant acknowledges that the city may elect to sell the property at any time during the [00:17:43] term of the lease or any renewal thereof. So, should Mr. Starkey's project take off [00:17:54] and send prices skyward, I would think we'd be talking to Mr. Wortham about buying the [00:18:01] building at some suitable price and I certainly wouldn't object to it. We get something that [00:18:10] matches in there. So, I see this lease as basically, for lack of a better term, a bridge [00:18:16] that gets us to a point where that piece of property is off the city's list of buildings [00:18:25] and is back in private hands. So, I don't have a problem with the way the lease is structured [00:18:32] now, given that I think we'll want to sell the building between now and the end of the [00:18:39] lease. [00:18:40] I guess the only question I have is going back to the $10,000 square foot property at [00:18:48] $36,000 a year. I think that's like $4 a square foot. I want to be judicious with the [00:18:55] properties that we do own and make sure that we are... And I certainly do appreciate the [00:19:03] fact that you have put the money into that building. Yes, I would say I have been in [00:19:07] the building many times and it's phenomenal. It's fabulous. It's tremendous. And I think [00:19:13] that all of what you did speaks very well of you and certainly the quality business [00:19:20] that you have run and I see why you are successful because you're able to help people see a vision [00:19:28] where there might not be one. But I still am thinking that I don't know if this is being [00:19:35] fiscally responsible of us, directors, to allow that for a three-year term at that minimal [00:19:48] amount of money. [00:19:49] I first looked at this project back when I came to the city in 2013. What do we do [00:19:58] with this building? Where do we go with it? What's the brand name of the city? I've worked [00:20:06] with actually four business incubators throughout my years at USF and they're all very, very [00:20:13] challenging to execute. This is an example of a business incubator that's successful. [00:20:20] And they all try to mitigate the cost so that these businesses can nurture and grow and [00:20:26] statistically basically eight out of ten business startups actually do fail. The goal here has [00:20:32] always been to basically try to mitigate some of the operating expenses until they evolve [00:20:38] their business model, they get some of the business processes and transactions that are [00:20:44] necessary to root that business. Previously we were paying a fee to Pasco County Economic [00:20:51] Development to facilitate that program and we've been very fortunate enough to have evolved [00:20:57] a program in there where we've been able to make a significant capital investment on Rod's [00:21:02] side to support that. So there's an additional benefit there. I certainly understand the [00:21:07] concern about the fair market value pricing of that, but I still very much believe as [00:21:13] Economic Development Director that we've got quite a ways to go in terms of developing [00:21:18] businesses, in terms of creating the catalyst necessary to support a lot of things that [00:21:24] we're trying to do here. So that's when I look at the rent rates. I think if I were [00:21:27] to go back to Mr. Wortham and ask for a much higher rent, he'd be looking at a different [00:21:32] place. And I do not want to lose the talent, I do not want to lose the intellectual property [00:21:38] that's inside that building, and I don't want to lose the efforts that we've had of taking [00:21:43] a vacant building that we bought back in 2004 that's done nothing for 10 years and we're [00:21:49] certainly moving that building further and we're elevating to a point where there could [00:21:53] be a significant financial benefit to the city as it executes on those other projects. [00:21:58] So yes, do we give them a competitive rent rate? Absolutely, but for 10 years the rent [00:22:04] rate was zero and nothing was happening in that building. I certainly respect the Council [00:22:08] members' perspective in terms of how we can escalate those rates, but having worked in [00:22:14] business developments for nearly 30 years, helping businesses start up, I think it's [00:22:20] absolutely important and the message is that we need to send the business owners out there [00:22:24] just like we do in a grant program, that we're here to support you and by providing him a [00:22:29] rent rate that is affordable in this phase of a business, I think is absolutely essential [00:22:33] to the success of this business. If we escalate the cost to them, I think that they'll sink [00:22:38] other alternatives. I agree with Mr. Arizoni, I agree with the Mayor, this is a no-brainer [00:22:43] in my opinion. I mean, you guys put $100,000 in the building, we couldn't have scripted [00:22:46] a better course for this building five years ago. I mean, we had a bunch of small businesses, [00:22:52] it was a great idea with the incubator, we had some small businesses in there, they're [00:22:54] all squabbling and it's a nightmare and Mario's dealing with it, now we've got a business [00:22:58] that's actually succeeding, he needs a space. My biggest thing is let's make sure we work [00:23:02] with Greater New Portage Main Street to find them a new office because this is probably [00:23:06] going to upset a few people over in that area, I would imagine. So, I appreciate your partnership [00:23:13] with the City, you give us great exposure, you've done great things with the building. [00:23:16] I don't do a lot of commercial insurance, maybe checking your business owner's policy, [00:23:19] checking the incidental occupancy, for the rare occasion we use the conference room [00:23:23] to recover in case I slip and fall and crack my head, but I'm sure you'll be fine. But [00:23:28] I mean, to me, we don't squabble over rent with the Historic Society building, we don't [00:23:32] do it with Chamber of Commerce, they're assets to the City, we need them there, they're doing [00:23:35] a great job. I hope you buy it too someday. [00:23:42] I would like the bathrooms to be put in there, just because you've got a lot of high-dollar [00:23:48] equipment in there, and I don't want that problem to arise. So, having that bathroom [00:23:53] zone, and I'm really not interested in selling the property until the three years are up. [00:23:58] I'd entertain a motion. [00:24:01] Move to approve. [00:24:03] With the bathrooms. [00:24:05] I'm not going to make them renovate the bathrooms. [00:24:08] No, no, no. [00:24:09] Access. [00:24:10] You want to add that to the lease? It's fine, yeah. I have to use the bathroom, so I'm looking [00:24:16] to vote. [00:24:17] Would you take a friendly amendment to ask about the liability for a rider, or an addendum [00:24:26] to the lease that we can talk about to put an addendum on the lease with regards to the [00:24:29] insurance and the accessibility, because I don't want to put any additional risk. Obviously, [00:24:37] we're escalating you from 75% of occupancy costs to 100% in a three-month time period. [00:24:45] It's kind of one long sentence with a period and then another one. If you don't read it [00:24:50] that close, that's how it comes. I disagree. At some point, I would like to see some revenue [00:25:02] back so that we can not have to go out and borrow all of our revenue to face some of [00:25:08] the other challenges that we have on both sides of our downtown area, especially when [00:25:12] it comes to parking, because we're not going to make any improvement. I don't see any decking [00:25:18] elements there on the Gloria Swanson lot because I'm not going to be behind it. It won't happen. [00:25:23] Not in my lifetime. Not next to Sims Park, but somebody will. I'm just trying to make [00:25:30] sure that we protect your side and ours, too. [00:25:35] You want that addendum in the lease? I said that the exposure is on you, so if you want [00:25:38] it, I'll endorse it on. No, he's talking about the liability exposure, I believe. [00:25:45] I have no exposure. I can add a sitting on to that as a priority. [00:25:52] So we have a motion and a second? Yeah, I'm seconding it now. To the maker? Nothing. To the second? Nothing. [00:26:03] Mr. Bell-Thomas? Yes, to include that as well, I certainly appreciate and understand what we're wanting to do in that property. [00:26:14] My concern was that we had just recently approved exactly what you said, Mr. Storchino. We didn't [00:26:21] quibble over the chamber of the West Pasco Historical Society. However, it just doesn't seem comparable [00:26:31] in terms of the lot. I do appreciate what you're doing there, and I would suggest – I'm [00:26:37] not sure that it needs to be part of this amendment – but I would appreciate them [00:26:41] putting up signage, being able to point people in that direction. They really don't get [00:26:47] – they can't find it. We've been waiting for the signage for the [00:26:55] building to get repainted. She can't hear you. He's in California. I forgot you're [00:27:02] in California. We've been waiting on the signage for just one reason, and that is to [00:27:07] get the roof completed and to get the building repainted. The building is now painted, and [00:27:12] the roof, I would say as of today, is at least 30 percent on and repaired. So as soon as [00:27:17] that is over, then we'll be – we definitely want to have a sign-up. We want to call it [00:27:23] the M&O Business Center. I mean, that's how much personal ownership we want to take [00:27:27] in that building. [00:27:29] The other 70 percent of the roof, including the roofing screws that are that long, are [00:27:34] on the driveway. [00:27:36] Director Phillips. [00:27:37] Not a thing. [00:27:39] There's no further discussion. All those in favor, please signify by saying aye. [00:27:43] Aye. [00:27:44] Aye. [00:27:45] Opposed? [00:27:46] Aye. [00:27:47] Opposed, like sign. Motion passes.

   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.

4. 4

   5800 Main St. Redevelopment Grant Application

   approved

   The CRA Board considered a redevelopment grant application for 5800 Main Street, involving a $150,000 reimbursement grant (20% match, capped) to 5800 Main Street LLC for a $1.2M renovation of a blighted 9,700 sq ft downtown building, plus a development agreement up to $100,000 with JAICA Inc. (DBA Wright's Natural Market) to serve as anchor tenant. The project aims to bring an anchor grocery store back to downtown after 30+ years, create 3-5 businesses and 20-50 jobs, and increase the property's taxable value to approximately $800,000. A motion for approval was made and seconded.

   • motion:Motion to approve the grant application for 5800 Main Street LLC (not to exceed $150,000) and authorize the executive director to enter into a development agreement with JAICA/Wright's Natural Market (not to exceed $100,000). (passed)

   📍5800 Main Street📍7731 Bloomfield, Port Richey📍Davis Plaza📍Railroad Square🏢5800 Main Street LLC🏢First Research🏢JAICA Inc.🏢Potter Brothers Food Liner🏢Wright's Natural Market👤Jeff Wright👤Mr. Arzoni👤Mr. Driscoll👤Ms. Bolster👤Ms. Manns#2001 CRA Plan#2012 CRA Plan#CCINA program#Citywide CRA#Commercial Real Estate Redevelopment and Reimbursement Grant#Florida Statute 163.345#Job creation program#TIF funds#Urban gardening ordinances

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   [00:27:49] Next is the 5800 Main Street redevelopment grant application. [00:27:53] I just have to excuse myself for one moment. Please carry on. [00:27:56] Ms. Manns. [00:27:58] Sure. Mr. Arzoni is prepared to present the agenda item. [00:28:06] Thank you very much, City Manager, Mayor, and Council. I want to go back to where this [00:28:15] concept came from originally. You know, we have a citywide CRA, and a lot of this goes [00:28:24] back to a conversation I had with the development director in terms of how we deal with another [00:28:28] building that actually – Ms. Bolster kind of has leases, and there's always these [00:28:33] repetitive problems inside these buildings when new tenants try to go into the building. [00:28:38] And we talked about doing what's called a mini – what can we do when somebody has [00:28:42] a fairly large building, and can we do a mini-development agreement for that? [00:28:47] And that's really where this idea initiated as far back as last year. [00:28:54] We have since evolved that program. The other concern was in the smaller grant programs, [00:29:01] which I think are highly effective. For every dollar we put in, we're getting about $2.75 [00:29:08] million in additional investment capital. And I wanted to address a much bigger problem, [00:29:14] which is really trying to stimulate capital investment into our larger buildings. [00:29:20] As you've heard from me before, the average year built of our downtown buildings is 1947. [00:29:26] And so we put a grant program out there that if we have a project more than a half million dollars, [00:29:33] we want to see a one to four ratio. [00:29:36] And again, the biggest challenge that we have here – and I've done some work here – [00:29:40] is that when I first showed up here, we had this $7 million debt. [00:29:43] We had purchased all these assets. 44% of it was actually in the Baptist Church property complex. [00:29:50] And there was a considerable number of challenges. [00:29:52] And the current accumulated cost on that $7 million debt is $10,400,000. [00:30:00] and $32,000. So as economic development director, I don't look at, you know, relationships out [00:30:09] there. I look pretty much where is the investment capital that I can stimulate with economic [00:30:15] development dollars to liquidate this $10 million debt because the cost per lot up until [00:30:22] this point is $1,490 and there's a cost per citizen of about $696. So as economic development [00:30:29] director, I'm looking to drive those limited CRA dollars we have to attract a fairly significant [00:30:37] amounts of private infrastructure investment which is I think part of the public investment [00:30:44] that we need to make to really drive the capital investment. So that's what this agenda item [00:30:49] is about. What we're requesting is this, is to, okay, put my glasses in here. This basically [00:31:07] is a request to authorize the executive director to approve two items here because they work [00:31:12] in tandem. It's what we call the commercial real estate redevelopment and reimbursement [00:31:16] grant for 5800 Main Street LLC which is an entity that has purchased 58 Main Street property [00:31:26] and they are the property owners. In addition to that, we're looking to enter into a development [00:31:31] agreement by a vice of Mr. Driscoll for an organization called JECA Inc. DBA Rights Natural [00:31:38] Market to serve as the anchor tenant for a community-based natural grocery market. [00:31:46] This is the building here. I think we're all familiar with it. And what they're proposing [00:31:52] here basically is to take advantage of the CCINA program and the language within the [00:31:59] CRA statutes at the state level and also the language within the CRA plan that we've had [00:32:05] in 2001 and 2012 for matching funds of about 20 percent to the project. This is what they're [00:32:14] proposing here. They're proposing to bring in an anchor tenant that is currently out [00:32:20] in Davis Plaza. I'll get into the details. What they're going to try to do is redesign [00:32:26] this building all together where they're going to bring this grocery store into town. And [00:32:31] I can tell you I've handled some of these stores as a CPA and they actually do very [00:32:36] well. The CPA firm that I work with up north is handling a store with a close friend of [00:32:41] mine and says it's the best decision that they ever made in terms of taking an equity [00:32:45] position of that. What you'll see here is that they're kind of breaking up the store [00:32:49] front and I think I'll ask Jeff to kind of talk about this a little bit more. But this [00:32:54] is the entire building here where it's kind of broken up and I'll let the architect kind [00:32:59] of explain all that kind of happens there. But the goal basically is to take this building [00:33:04] and completely refurbish the building. This is the back of the building. This is what [00:33:09] they're proposing here on Railroad Square where Rice Nutrition would occupy initially [00:33:14] 3,500 square feet and they would continue to try to evolve the building in terms of [00:33:19] custom built retail. This redevelopment project basically is a 9,700 square foot single story [00:33:27] structure. Probably a lot of you folks have been around here a while. It's the original [00:33:33] home of Potter Brothers Food Liner. It contains, one of the things that they discovered when [00:33:38] they went in the building is it does contain hazard materials and there's a cost for remediating [00:33:43] that. The building has steadily declined in avalorum value here. The peak of what it ever [00:33:49] was was $717,000 in 2006. Prior to purchase, it was $261,000. There's been a 64% decline [00:33:59] in taxable value and under some of the language related to the CRA, this is considered a blighted [00:34:04] property. What they plan to do as part of 5800 LLC is to demolish the interior space, [00:34:13] remove the asbestos, replace exterior awning, make major repairs, significant improvements [00:34:19] to the overall design, and maximize customized retail space. The overall investment is $1.2 [00:34:27] million. It's to anchor a grocery store and several custom built retail spaces and the [00:34:37] goal here, basically what's going to happen is that we can create anywhere from three [00:34:41] to five businesses here and employ up to 20 to 50 people in this facility. The benefit [00:34:48] here is that at Revi, this is 100 feet of frontage on Main Street with up to date architectural [00:34:55] multivated activated storefronts, sidewalk merchandising, and outdoor seating. Creates [00:35:01] a new activity on Railroad Square. The most important thing to me here is specifically [00:35:06] this, is this investment of this one CRA dollar to basically bring in four additional [00:35:13] dollars in private sector infrastructure investment. The building is going to renovate and rehabilitate [00:35:23] an aging downtown building and what's going to happen here is there's going to be an increase [00:35:30] in Avaloran value of the property, estimated to be about $800,000 when this project is [00:35:35] completed and the income coming into the CRA, net of the 5% that the county takes [00:35:43] out is about $12,700. It will have a substantial visual effect and it reintroduces an anchored [00:35:52] grocery store in downtown missing for over 30 years and to me I think this is a really [00:35:58] important component and essentially the role for economic development is to provide such [00:36:04] a facility to the residents of this town. This is just kind of a view of what's happened [00:36:10] to the taxable value. It's declined steadily since 2006 and one thing I want to kind of [00:36:16] point out is analysis of the tax record, the property taxes were going delinquent on this [00:36:21] property. Upon renovation, this is the current benefit we get right now from the acquisition [00:36:28] of the property. Like entrepreneurs, they want to move much faster than the city and [00:36:35] I think that's a good thing in the fact that we get done much sooner and we expect the [00:36:39] taxable value to jump to $800,000 which will be the highest taxable value this property [00:36:44] has ever had since I can go back to 1999 in regard to that and we expect that taxable [00:36:51] value to continue to grow there and obviously there is an additional benefit. In that grant [00:36:56] program, we talk about projects that must have a creative effect. Not only should it [00:37:03] improve its own taxable value, but it should improve the taxable values of the adjoining [00:37:07] properties and I remember some of the county here talking about downtown vacancies and [00:37:12] why are our avalorums so low? We have a lot of downtown vacancies and that's why they [00:37:16] consider that. So this investment, I believe, is beneficial to the adjoining properties [00:37:22] and also steps up the game for individuals that kind of want to join. Our grant application [00:37:30] request is a 20% reimbursement capped at $150,000. The reimbursement would happen in three phases. [00:37:37] The first would be the demolition, the abatement, cleanup, and engineering of the property. [00:37:42] The second phase would be the facade and site development, which is removing that whole [00:37:47] outside awning and getting a facade. And then the third phase basically is replacing [00:37:52] the roof, interior construction, and again the mechanicals. So what 5800 Main Street [00:37:59] LLC is taking this building, completely renovating it to the tune of $919,000 is what their estimate [00:38:09] in terms of including acquisition of the building. We would basically be supporting a portion [00:38:16] of that to the degree of $150,000. The point that they make there is it creates a touchstone [00:38:21] for development, new architectural elements such as awning trim, I guess that's an architectural [00:38:29] name, parpettes there, to different units. I'm a numbers guy. I learned a very long time [00:38:36] ago when I was in business you pay attention to the numbers and that's what drives and [00:38:39] motivates me. And I've seen a lot of businesses do very well as a result of paying to that [00:38:44] little piece of information. Wright's Natural Market will serve as the anchor. And again, [00:38:51] in looking at trying to justify why you would put close to a million dollars in buying this [00:38:57] building and renovating it, one of the solutions here is to sign a long-term lease. And this [00:39:03] is the key here with this anchor tenant to provide a rent rate that supports the renovations [00:39:10] that must occur in this property. And the other thing that, if you're reading the narrative [00:39:15] also, they plan on recruiting complimentary retail businesses and they plan on keeping [00:39:21] the rent rate substantially high. In other words, the goal here basically is to put a [00:39:27] product out there that where you're renting it at $11, $12, $13 a square foot, it simply [00:39:34] changes the game for our downtown. Wright's Natural Market, this is where we're going [00:39:39] to the development agreement here. This is a two-step process and this is why it has [00:39:44] to be a development agreement. And this is absolutely essential to Wright's Natural Market [00:39:49] to be able to kind of move forward with their plans. They're looking for a 20% match on [00:39:54] their capital investment in the property. And in this grant program we have a job creation [00:40:00] program, which is common throughout the country. We've done extensive research on this to make [00:40:04] sure that other cities offer this program. They would need to sign a minimum of five [00:40:09] years. So my understanding is that the lease term is a lot more aggressive than that where [00:40:12] there's several renewal options. And they would need to maintain an average of at least [00:40:18] five FTEs to be able to justify the parameters of that job creation program. Their goal here, [00:40:26] now, Wright's Nutrition, and again, in looking at these projects and what projects that we're [00:40:32] looking going forward, these have to be significantly benefit the city in a very big way. And clearly [00:40:39] this is what we want. We want investors and entrepreneurs coming together, pooling their [00:40:45] resources to do something that is of significant benefit to the residents of this town. And [00:40:52] talking to Mr. Wright, I can really tell you he knows his stuff and he knows his numbers. [00:40:57] And I've been talking to people for a very long time about it. He knows his revenue per [00:41:01] square foot. He knows his break-even. And to me that's absolutely essential. Otherwise [00:41:07] I don't even go in that direction with an entrepreneur because I know how risky businesses [00:41:11] are. They're an active tenant to serve as a downtown retail hub. So their advertising [00:41:18] dollars are going to be bringing people into this town. They're going to be generating [00:41:22] over a million dollars of revenue a year. They're going to be reinvesting that in employees. [00:41:26] They're going to be telling people, just like my network is, please come to New Port Richey. [00:41:32] We're importing capital into this town so it can be released amongst the businesses [00:41:37] within town, if not completely in Mr. Wright's store. It plays an important part in meeting [00:41:43] the needs of downtown residents, adding significance to the quality of life, providing a convenient [00:41:50] walkable location for groceries and health. And I believe there's a narrative in there [00:41:54] talking about improving the walkability score of a town. And when we do that, it improves [00:41:59] the property values and avalor values of other properties simply by that dynamic. And that [00:42:06] provides economic development opportunities for urban farming. So I thought this was really [00:42:10] quite interesting because this group has already made inroads with those organizations [00:42:15] and it has very strong relationships with those individuals. And I think it melds well [00:42:20] with what Council's been doing with the urban gardening ordinances. And I think this project [00:42:26] really kind of helps. I view this as the tipping point. I take a lot of heat from the fact [00:42:32] of when you're going to stop giving out these credits? When are we going to start negotiating [00:42:38] very aggressive deals in terms of trying to bring money into the city? And it's not [00:42:43] my goal to give everything away here. My goal basically is to drive the economics of this [00:42:49] town, to create a catalytic environment so that investment capital flows into this town [00:42:55] so that we can lower our millage rate and we can provide a better quality of life to [00:43:01] the cities. That's what I simply focus at in terms of the aspects of my job. [00:43:07] I always run this economic report just to kind of make sure. What you see up here is [00:43:12] basically is the additional capital investment beyond the acquisition price of the building [00:43:19] that essentially creates about seven jobs there. There's some labor revenues generated [00:43:24] and some salaries there. But this is actually the renovations that would occur. And the [00:43:31] total output would be about $1 million. And I forget what that fee is. I think it's like [00:43:36] maybe it's the 734 figure out here. But there is a benefit from the money that they've kind [00:43:40] of put into the building. More importantly is, you know, the question is, can Rich Nutrition [00:43:46] maintain the five FTEs? Now, this data I pretty much pull from my resources. You know, we [00:43:54] use a product called First Research. I'm using plan. And basically the direct effects is [00:44:00] that six full time equivalencies can be created. Again, here's your payroll that would be [00:44:07] as a result based on the nature of this business and its NAS code. So again, you know, I'm [00:44:13] not so my greatest concern from a risk perspective is, you know, I don't care about the [00:44:21] win. I want to protect the downside. And that's what I'm looking at here. We're investing [00:44:26] money. It's residents money to provide a benefit to the residents to bring additional [00:44:32] capital in town. I never really look at the upside, look at the most conservative approach [00:44:36] to things. So that's why I kind of look at this data here. And what's the bottom number? [00:44:42] And this was a real concern to me. Can we, you know, can this business sustain six employees [00:44:47] and make good on the money that we're going to loan it to? And researching this, these [00:44:54] are the laws, since we are a citywide CRA and. [00:45:00] The Florida Statute 163.345, you know, specifically talk about encouragement of private enterprise, [00:45:09] and in your package you have the details of this stuff. I simply didn't want to kind of [00:45:12] read all the narratives, but it is quite extensive, and the Florida Statute basically says municipalities [00:45:19] such as us, or counties, or CRA districts should be looking at these issues. You need [00:45:24] a workable program, and it further defines that public and private resources to eliminate [00:45:29] and prevent the development or spread of slum, slum and blight. So this is a public [00:45:34] and private project. Also talk, and again this is at the state level, 163 also talks [00:45:40] about the fact that, you know, the municipalities have the power to do this, and they have the [00:45:47] power to insist in relocations of persons and business, and make payments for their [00:45:52] cost of relocation, which is what Rice Nutrition needs basically to try to make this concept [00:45:57] work. In 2001, inside, you know, I have the page, when we did the 2001 CRA plan, when [00:46:07] we made the citywide CRA, in this section it talks about community enhancements, it [00:46:12] talks about strengthening local tax base, it talks about strengthening land use patterns [00:46:17] with the community, within the community to enhance the business districts and reverse [00:46:25] obsolescence. This project addresses all four of these issues. That's why I'm so supportive [00:46:31] of this project. It isn't anything other than that, that it fits completely within the directives [00:46:37] that was created by the CRA law at the state level, at the community level in 2001, and [00:46:43] also in 2012. They make it even clearer here, and again you have quite a bit of detail in [00:46:49] the narrative there, and the fact that on page 46 and 47, it talks about the fact that [00:46:59] we should be promoting the establishment of new businesses in the community, to enhance [00:47:03] the existing tax base and further redevelopment efforts. It talks about rehabilitation assistance [00:47:10] program, which is a program that we'd be providing here. We should consider incentive programs [00:47:15] to entice private redevelopment and revitalization of centrally located commercial properties, [00:47:22] and this clearly is one that has been identified as underutilized or poorly maintained. It [00:47:28] talks about store frontages here, TIF funds for the redevelopment of store frontage and [00:47:33] rehabilitation of run-down business facades. And finally, this last point is really critical [00:47:39] and it drives to the heart of what's in the CRA plan, is that we provide incentive-based [00:47:45] recruitment of targeted businesses, which is what we're doing in economic development [00:47:50] here. The city should consider the target marketing of properties, especially in the [00:47:55] downtown, to specific types of businesses in order to encourage activity generation, [00:48:03] and the number one example here is specialty food store, which is what this project is. [00:48:11] And so, I had one other thought there, but I kind of jumped off my own. You know, we've [00:48:19] been following the Florida CRA statute kind of closely, and we almost looked at the elimination [00:48:24] of that statute in the Florida legislative session, and the big argument that happened [00:48:31] was that you want to take local dollars and turn it back into local communities, and when [00:48:36] I watched that whole narrative, it looked like, quite frankly, the state wanted to get [00:48:40] rid of municipalities. And I think what we've heard through this very long night here is [00:48:44] that we want a municipality here, we love our diversities and our opinions, and we certainly [00:48:49] have different voices, but as economic development director, my goal is to provide this girl [00:48:54] here on the left the cash flow to be able to pay for city services, to pay for fire, [00:48:59] to pay for police, you know, to pay for the library so that she doesn't, I've been in [00:49:04] her shoes before, okay, and that's what my job is here, and it's not to align with anybody [00:49:10] or a specific group, my job is specifically to focus on opening up wallets and investment [00:49:16] capital and having that money flow into the city, and within the language of the CRA that [00:49:22] was about sitting legislation, one of the benchmarks that the state is eventually going [00:49:27] to ask for is a relationship of CRA dollars and how much private sector investment did [00:49:34] those CRA dollars attract, and that's going to be an extremely important benchmark, and [00:49:41] that's what this project really focuses on, how can we best partner with our businesses [00:49:47] and investment capital to redefine the city so that we can provide the services that we [00:49:52] need to do as a city. Recommendation is to improve the grant application for 5800 Main [00:49:57] Street, LLC, budget not to exceed $150,000, and to authorize the executive director to [00:50:03] enter into a development agreement with JAICA, I think I misspelt that, it's JAICA, or Rights [00:50:10] Natural Market, a budget not to exceed $100,000. Thank you very much. [00:50:18] Thank you. I'll open it up for public comment. [00:50:34] My name's Jeff Wright, my wife and I own Rights Natural Market, my address is 7731 Bloomfield [00:50:41] in New Port Richey, and we're very excited about the opportunity to expand the store, relocate [00:50:48] ad departments that we feel the community is asking for, and developing a downtown presence. [00:50:57] If you have any questions, I'm glad to try and answer those, but just to kind of give [00:51:03] you a thumbnail of what we're looking at doing, we're looking at expanding our produce section [00:51:07] where we've been featuring organic produce and locally grown produce. We're in the process [00:51:13] of adding more local producers, whether they're growing food or it's a cottage product that [00:51:22] we might be able to sell in the store to help promote local businesses and help them to [00:51:27] flourish. We're looking at adding a sidewalk cafe, we're looking at having an organic barista [00:51:34] station, smoothie bar, and some grab-and-go food, as well as what we already have. If [00:51:41] you're not familiar with our store, we have bulk foods, health and beauty care, packaged [00:51:46] foods, specialty foods for people who have allergies like gluten-free foods, nut and [00:51:52] dairy free. So we're very optimistic about working with you guys and moving downtown. [00:52:05] Other public comment? Seeing none, I'll bring it back to the directors. [00:52:14] Move for approval. Second. To the maker. As I stated before, I'm looking to help businesses [00:52:22] downtown and bring business downtown, and so this is right up the alley of where I want [00:52:27] to go. Second. Mr. Arizona, excellent presentation. I'm one of your fans, you know that. I think [00:52:34] you do a very good job, and I appreciate all the hard work you put into this presentation. [00:52:39] It's a lot of money, and we all know that, but that's why we created this, right? They're [00:52:46] putting a lot of money into it, and this is going to help with redevelopment, and you [00:52:50] touched on every aspect that you and I have spoken about before, but it's late, my mind's [00:52:55] drifting, but they're quality candidates. They're bringing a much-needed business, in [00:53:01] my opinion, to downtown. My wife's best friend lives in Manhattan. She's a poster child for [00:53:09] urbanization. She loves living in the urban atmosphere. She and her husband and his family [00:53:14] own a very nice Italian restaurant right off of Times Square. They do very well, but she [00:53:20] was just so enthralled that when she came to visit for two nights that our friend Amy [00:53:23] could bring the golf cart over, pick them up, take them to dinner, hit a couple bars, [00:53:27] and then go home. She called it golf carting, and she thought it was so cool. And people [00:53:31] like golf carts, people are going to want to live and work in this downtown atmosphere [00:53:36] that we're creating, and they want to be able to go and stop by and grab something for dinner [00:53:40] without having to hit Southgate on their way home from work if they do drive to work, and [00:53:43] this is going to enable them to do that. I think it's a great idea, and I'm in favor [00:53:49] of this. Director Phillips. Director DeBella Thomas. Thank you. Well, you know, it reminds [00:54:03] me of two things. When my husband was on council and we went down to Fort Lauderdale and we [00:54:08] were so impressed with the incentives that that city was creating to create their Riverwalk [00:54:15] area, and it was so exciting to be part of that. I know when Mario was early on in his [00:54:23] – when we first hired him, I chatted with him and said I would love to see a Trader [00:54:29] Joe's downtown at the old IGA store, and I'm really enthused that, you know, better [00:54:36] than a Trader Joe's because we've got now a – [00:54:45] Come on, Luther Mandrose, baby. Just come on up. Come on down, baby. Sing me a song. [00:54:57] Was there a time limit on that, like the air conditioning? Because it's apparently done [00:55:04] a great job. We waiting? [00:55:12] Well, I'll be happy to jump in. Mr. Wright, I fully support your part of the package. [00:55:21] Okay? I fully support it. I think it's the right thing. I remember when it was Potter's [00:55:26] IGA and all those kind of things. Obviously, we didn't have this fund set up earlier [00:55:33] in the year and wasn't in the overall concept of our budget last year in the CRA, and now [00:55:39] we're talking about moving things, but I've made points all night long that there's [00:55:43] been no support for, nothing to come along with. I wanted Mr. Starkey's project to [00:55:49] be two-phased, you know, pay it as you go, kind of go through the process. It's already [00:55:54] been – you know, we've already made the motion. It's late at night. We're all [00:55:59] extremely – I don't know. We're not tired. We just – there's been a lot on [00:56:05] our plate, and this particular element with the CRA and redoing ad valorem and all those [00:56:15] kind of things really needed a much better platform than we gave you. I apologize. I [00:56:22] personally apologize, because I felt like this in the development – because also in [00:56:27] the development, and this piggybacks on other things that the economic development side [00:56:32] has done here recently, in that we want to embrace it, and we do, because I remember [00:56:40] what downtown used to be like, because my dad tried to get a thriving business in the [00:56:45] 60s here, and unfortunately he faced the outcomes of the economy in the late 60s, early 70s, [00:56:52] so his business didn't survive. He moved it three places. I really want to bring it [00:56:58] back downtown, and I appreciate that you want to be here, but once again, there's a couple [00:57:05] things in the development aspects that we've kind of glossed over. One, we're going to [00:57:11] be creating some outdoor seating areas for your business. It's not well-defined right [00:57:16] now. It's going to be in the main side of the park. For Rose's Bistro, we had to create [00:57:22] it after the fact, so we're going to have to deal with that. You're also asking us [00:57:27] to take a project on Railroad Square, where we spent a million dollars, not this council, [00:57:35] another council, and now we're going to have to take that, and to make it more appealing [00:57:40] for you and the other part of the development, we're going to tear that out. Then we're going [00:57:44] to create dynamics where we want to close that street, because that's what we designed [00:57:49] it for, to close it off, and what the impact's going to be on your business, and all those [00:57:54] kind of things. We've gone through those growing pains, because [00:58:01] we lease our outside entertainment area to Dulcet's. They reggae the crap out of it on [00:58:07] Friday and Saturday nights, and they bounce it off of Jimmy Ferraro's theater there and [00:58:12] ran him out of town, maybe because of theater-goers. Then we also are facing, obviously, and you've [00:58:20] done it for a long time, what your business cycles are between when the snowbirds are [00:58:25] here and when they're not here. God bless, I don't care what anybody wants to tell you. [00:58:29] When they're not here, it's a different environment. I was in the real estate business. We ended [00:58:36] up doing deals over in Zephyr Hills in a food line shopping center, where we had charged [00:58:41] somebody higher rents for six months, and then lower rents for another six months, because [00:58:47] we knew that if we charged them the same rent year-round, we were going to run them out [00:58:51] of business. As I said, I wish this document would have [00:58:57] been structured differently, because we brought this program in late in the game. Now we're [00:59:02] going to give them 150 and be a 20% partner. I love your concept, and I want it downtown [00:59:09] really badly, because I want to prove that it can survive. I want to prove that it's [00:59:12] the right element. I think it resets the stage. Once again, there are other things [00:59:18] that are going to come with that development that we're collectively going to have to deal [00:59:23] with as a council up here, because it's not in our present footprint downtown. That's [00:59:29] where I don't want to preclude you from not having outdoor seating, but it's going to [00:59:34] have to take some elements. I do really appreciate that you did put the [00:59:38] palm trees as part of your depiction of the front of that store, instead of those drake [00:59:44] elms, so the mayor wouldn't say, God, what's with that drake elm there? It's going to be [00:59:48] gone. Like I said, I brought up points all night long, and I spent multiple hours looking [00:59:54] at all this. I'm fatigued, and I'm tired. I'm also feeling a point [01:00:00] in this that if we're not going to take the extra time, then let's just expedite some [01:00:08] of this stuff and be done with it. We're going to go to communications here, and I'm going [01:00:14] to pass, even though I got 12 things to talk about, because it's a long night. I really [01:00:19] thought we should have given this element a much better platform, especially when it's [01:00:27] driving our CRA and our re-elevation of the CRA. With that, you have my personal apology [01:00:34] as a city councilman and as a resident in New Port Richey who pays fairly substantial [01:00:40] taxes into the CRA, and I just wanted to let you know that I want your business to be successful, [01:00:46] but I also think the platform for us to discuss this and really show the benefits wasn't done, [01:00:53] and that is on us and on me, because I didn't do a good enough job to say, this thing's [01:00:58] going to be way out. We need to spend this a little differently, but I know Mr. Starkey [01:01:03] wants to talk about his side of the project, and that's fine, but I have to tell you that [01:01:09] I wanted some staging, because I want to try to utilize that money as much as possible. [01:01:14] I know we're not going to pay them until they get done, and we got timelines and all that, [01:01:18] but at the end of the day, I'm much more nuts and bolts, and I like it much more defined, [01:01:24] and I'm sure you do from a business operation standpoint. So again, that's me, and I get [01:01:29] to say it because I'm elected, and I serve in this role all the time. I've been here [01:01:34] six years, been here 20 years ago, and I'm back again, and when I have stuff to say, [01:01:39] I usually bring it to the forefront. [01:01:42] Director DeBello-Thomas, are you back with us? [01:01:45] Yes, thank you. I felt like I was on a roll there saying what I needed to say, and I apologize. [01:01:50] I missed the beginning of Mr. Phillips' conversation, so I apologize for that, but I was wanting [01:01:58] to say two things, and that was that I'm pleased to know that this is exactly the reason why [01:02:05] we have created the CRA, this kind of opportunity to be able to generate redevelopment in our [01:02:15] downtown, and in light of what was presented in terms of the outdoor seating, I think there's [01:02:24] actually a couple of weaknesses that we might need to revisit because I really think that [01:02:30] outdoor seating component especially, we over-reached for something, but we definitely [01:02:39] should re-look at that. And with that said, the hour is late. The point is I'm pleased [01:02:49] that you're coming into the downtown, and I'm pleased that we're able to give you a [01:02:53] leg up on this project. [01:02:57] Thank you. [01:03:04] So that is part of our ultimate goal, but we do realize we still have to pass permitting, [01:03:12] coding, and everything else. So while that is our goal, we haven't had that conversation [01:03:18] yet because that's kind of put in the cart before the horse. So we do realize that we [01:03:23] do need to follow those procedures and policies. [01:03:27] The conceptuals, and you can tell Jose I said this, pretty much sold it for me. It's the [01:03:38] before and after shots, both on the Main Street side and on the Railroad Square side. There's [01:03:49] some ongoing conversations among multiple individuals regarding the outdoor seating, [01:04:00] and as recently as this past weekend have had chats bouncing all over Facebook about [01:04:11] similar type of outdoor seating being made available at a place like Zip or at the White [01:04:20] Heron Tea Room, where there isn't really adequate space on the sidewalks right now. So there [01:04:25] are folks that are thinking about this, I think in some very creative manners. One of [01:04:32] the city's staff members actually found a picture from New York that looked pretty intriguing, [01:04:41] and to see you incorporate that in, I think it's a step in the right direction. We want [01:04:50] people to have a reason to be on the sidewalks. And yeah, I don't like the Drake Elms, as [01:04:56] it was pointed out. I lost the argument about palm trees, but I'll survive. We just need [01:05:02] to make sure there's enough shade so that people don't get heat stroke during the summer [01:05:06] when they come out to sit out on the sidewalk. I'm excited about this. I think it's a step [01:05:15] in the right direction. Mario, thank you for coming up with a way of doing these grants [01:05:23] to make something significant happen. Getting the old Potter Brothers IGA food liner back [01:05:30] into productive use, particularly with a food store, is going to be a real boon to the downtown. [01:05:42] I just wish I had some of that dark chocolate bark with coconut for up here tonight. I could [01:05:48] use the boost right about now. That was delicious stuff I bought over at their current store [01:05:55] a couple of weeks ago. It was really good. So with that, I'm supportive of this. We have [01:06:03] a motion and a second to do this. Any further discussion? Hearing none, all those in favor, [01:06:12] please signify by saying aye. Aye. Opposed, light sign. Next item on the agenda is the

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5. 5

   Resolution 2017-19 Hacienda Special Category Grant 2018/19

   approved

   The CRA Board considered Resolution 2017-19 authorizing submission of a Special Category Historic Preservation Grant application of up to $500,000 for the Hacienda Hotel, with up to $250,000 in city matching funds for FY 2018/19. Director Phillips expressed strong frustration with the slow pace of the Hacienda rehabilitation but indicated support, and the resolution passed.

   Ord. Resolution 2017-19

   • motion:Move to approve Resolution 2017-19 authorizing submission of a Special Category Historic Preservation Grant application up to $500,000 for the Hacienda Hotel with up to $250,000 in city matching funds. (passed)

   📍Hacienda Hotel📍Sims Park🏢Division of Historical Resources🏢Friends of the Hacienda👤Debella Thomas👤Director Phillips👤Mr. Driscoll👤Mr. Iazzoni👤Mr. Langford👤Ms. Mance#Hacienda Special Category Grant Program 2018/19#RFP/RFQ for Hacienda#Resolution 2017-19#Special Category Historic Preservation Grant

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   [01:06:20] resolution of the Hacienda Special Category Grant Program, which I hope is quick. Resolution [01:06:26] number 2017-19, a resolution of the Community Redevelopment Agency of the City of New Port Richey authorizing the submission of a grant application to the Division of Historical [01:06:35] Resources for a Special Category Historic Preservation Grant requesting funds up to [01:06:39] $500,000 for the Hacienda Hotel and further authorizing an amount up to $250,000 as the [01:06:46] city's required matching funds. I'll open up for public comment. I see nobody racing [01:06:53] down here. Bring it back to... Y'all aren't allowed to leave. You've got to stand out. [01:06:57] Yeah, really. No one's allowed to leave. Ms. Mance, do we have a presentation on this? [01:07:03] Mr. Mayor, Mr. Iazzoni is interested in trying his hand again at his efforts in receiving [01:07:12] grants to take further the rehabilitation and the preservation of the Hacienda Hotel. [01:07:20] As Mr. Driscoll has indicated, we are requesting $250,000 from fiscal year September 2018 to [01:07:32] serve as a match for the grant should we be successful in our efforts. Motion? Move [01:07:40] to approve. Second. To the maker. Hello? Yes, I'm sorry, did you say something? Yes, did [01:07:50] you have any comments? Oh, yeah, I think that is an excellent point that we need to do that. [01:07:56] I'm thankful that Mr. Iazzoni is taking another presentation. I appreciate what he did before, [01:08:02] but this is a seemingly no-brainer. I just want to keep the Hacienda rolling and make [01:08:08] it more enticing for a developer. Thank you. Director Phillips? I'm done talking about [01:08:17] the Hacienda. It's a case study to me, and I've said it over and over. We continue to [01:08:24] push this thing down the road. We've got the fence up. I've talked about it exhaustively, [01:08:29] and I was one of the ones that tried to start it up back in 2012 into 2013. Mr. Iazzoni [01:08:36] knows my point of view. I've made it over and over to him, both in public and in private. [01:08:41] I've made it to Mrs. Mann's that I am tired of the fence being up, and every year we want [01:08:47] to go ask the state for some more money that has strings tied to it. At the end of the [01:08:52] day, let's identify what needs to, and let's get the daggum fence down. Let's prove to [01:08:57] people that you can get people in and out of it. Once again, I said I'm not going to [01:09:00] talk about it, but once again, I'm passionate about it. It just seems like we continue to [01:09:05] do this over and over. We did it. We got it. Now we want to talk about the doors and all [01:09:11] this. It's going to be 18. It's going to be 19. We got one user that came to us when we [01:09:17] did our RFP or RFQ. Then I see an article in the paper that we're seriously considering [01:09:24] that, and we've talked to the guy. We haven't even heard about it up here. You know what? [01:09:29] Somebody's off the reservation doing something with this thing that isn't here. Like I said, [01:09:38] now we're talking about going into next year's cycle. We got to hope that we've got a good [01:09:44] PR with legislative bodies to get it, but once again, we're talking about what's going [01:09:51] to happen next year, and it's not open. You can't go into it. You got to have a special [01:09:58] invitation. Friends of the Hacienda drive 4,000 people through it on four different [01:10:03] 1,000 each occasion. Like I said, I can tell you in my wildest dreams when we had 400 people [01:10:12] there in January 2013 that I never thought we'd be sitting here in 2017 without the ability [01:10:20] to at least walk in and out of it and to make it accessible. But again, we ain't there. [01:10:26] I keep asking the same questions over and over again. I know what that means. There's [01:10:30] an insanity element there because I keep asking it, and if any of you don't agree, that's [01:10:37] fine. But at the end of the day, it's something that we just can't continue to make it an [01:10:44] ongoing, let me go to the state and ask them for money. Either we come up with the money [01:10:48] up front, get it ready and open it up, but we keep waiting around for somebody to come [01:10:54] around. It is late in the hour, and I have to tell you, my frustration level has reached [01:10:59] a point, and usually I'm not this unprofessional, but I'm just really tired, and especially [01:11:05] when you talk about the Hacienda. To me, it just looks like ... My second three-year [01:11:13] term's up next April, and I know the last time I was on council, we were talking about [01:11:19] redoing Sims Park in the 90s, and two years later it got done. Mr. Langford, I keep looking [01:11:25] at you because you and I have walked a lot of miles in our shoes here, and I know we [01:11:30] keep thinking we're covering the same ground over and over again, and it disappoints me [01:11:36] to no end. Absolutely no end. So that's my personal opinion. [01:11:40] I appreciate the state giving us money when we're able to. I want to get the Hacienda [01:11:45] open as well. I wanted to partner with the right developer to do so. I appreciate the [01:11:50] Friends of the Hacienda. You guys do great things for that building. We're all passionate [01:11:54] about it. A representative from your organization approached me and thought it'd be a great [01:11:58] idea to open it up and put porta-potties in the parking lot and have class reunions [01:12:03] downstairs. That's not my vision for the Hacienda, getting it open. So I let him know that I [01:12:08] want it open, too. I'm okay getting free money until we get the right developer, and I pray [01:12:12] to God that it does get open properly sooner than later, but I don't see a point to throw [01:12:18] portalettes in the parking lot and have class reunions. That's where I stand. [01:12:25] And I'm going to vote in favor of this when we're ready to open. [01:12:28] Director? Debella Thomas, anything? [01:12:31] No, I'm good. [01:12:33] Okay. Yeah, I don't mind using the state money at all. I would definitely love to get us [01:12:38] open ASAP, but in the meantime, if they want to throw money this way, I'm all for it. [01:12:45] If there's no further discussion, all those in favor, please signify by saying aye. [01:12:49] Aye. [01:12:50] Aye. [01:12:51] Opposed? [01:12:52] No. [01:12:54] No. [01:12:55] Opposed? [01:12:56] Aye.

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6. 6Adjournment▶ 1:12:57