On the agenda

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

   Approval of November 21, 2017 CRA Meeting Minutes

   approved

   The CRA Board approved the minutes from the November 21, 2017 meeting.

   • motion:Approval of the November 21, 2017 CRA meeting minutes. (passed)

   #November 21, 2017 CRA Meeting Minutes

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   [00:00:22] First item on the agenda is approval of the November 21st meeting minutes. [00:00:23] Move for approval. [00:00:24] Second. [00:00:25] We have a motion and a second. [00:00:26] Any discussion? [00:00:28] All those in favor, please signify by saying aye. [00:00:30] Aye. [00:00:31] Opposed, the like sign.

   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 “AG Development Company” — transcript expanded below

   CRA Land Sale of .2 Acre Parcel

   approved

   The CRA Board approved the sale of a 0.2-acre CRA-owned parcel to AG Development Company for $35,555 to facilitate construction of a 22,498-square-foot Aldi grocery store at 6214 US Highway 19. Staff explained the parcel is part of a larger redevelopment that includes the former Media General building and possibly the SunTrust and Walgreens properties as future phases, with future phases expected to be rezoned as a planned development district.

   • motion:Approve the sale of the 0.2-acre CRA parcel to AG Development Company for $35,555. (passed)

   📍6214 US Highway 19📍7224 Grand Boulevard🏢AG Development Company🏢Aldi🏢Encore Development Company🏢FDOT🏢Media General🏢River Road Church🏢SunTrust🏢Walgreens👤Bill Madem👤Mario Iazzoni👤Mr. Colson👤Ms. Fierce👤Ms. Manz👤Ms. Spears👤Wendy Brenner#July 25, 2016 appraisal ($320,000 sales capital; $173,000/acre)#Letter from Bill Madem regarding minimum housing square footage#Marine Parkway elevated walkway#Phase one / Phase two redevelopment site plan#Planned Development District rezoning (future phases)

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   [00:00:33] Next item is CRA land sale, .2 acre parcel. [00:00:36] Ms. Manz? [00:00:37] Yes, sir, Mr. Mayor. [00:00:39] This agenda item is being advanced to you for your consideration in respect to a plan [00:00:47] to construct a 22,498-foot grocery store at 6214 US Highway 19. [00:00:58] The reason this is being put forward to you is because it involves the sale of .2 acres [00:01:07] of CRA property for the purpose of redeveloping and establishing the prototype store, which [00:01:17] would be an Aldi grocery food market. [00:01:21] The Economic Development Director and I have been working with AG Development Company, [00:01:28] who is the interested developer on this proposal for some time now. [00:01:35] And Mr. Riazoni does have a few words and a PowerPoint to share with you this evening. [00:01:44] Our recommendation is that we sell the property to AG Development Company in the amount of [00:01:52] $35,555 for .2 acres of property. [00:01:58] Mr. Riazoni, if you could. [00:01:59] Mayor, can you make sure you speak really, bring the mic up? [00:02:02] I've heard from some people that obviously the acoustics in the room aren't great, but [00:02:07] that some of the folks at home are having a little trouble hearing us. [00:02:11] Thank you. [00:02:12] Thank you very much. [00:02:14] Thank you very much, Executive Director and Mr. Chairman. [00:02:19] The yellow area kind of indicates where the Aldi's would be constructed here. [00:02:23] They've already gone ahead and purchased the Media General building for a price of $1 million. [00:02:28] And from what I understand is they've also closed on another piece here where the sub [00:02:31] shop was kind of at. [00:02:33] The piece that they need to acquire is related to the River Road Church property right here, [00:02:38] and it's just small two-tenths of an acre in the corner to be able to make this site [00:02:43] work. [00:02:44] I went out and actually reviewed the Aldi's. [00:02:47] This is a larger Aldi's by about 5,000 more square feet. [00:02:50] 500, Mario. [00:02:51] I'm sorry. [00:02:52] 500 square feet. [00:02:53] Is it 500? [00:02:54] Yeah, it's 500 more, not 5,000. [00:02:55] Okay. [00:02:56] I have to check my math on that. [00:02:57] I apologize for that. [00:02:58] And I looked at the one up in Cinnamon Drive and looked at the taxable value there, and [00:03:09] it was like $1.78 million. [00:03:12] And the whole goal, it looks like this one's a little bit larger, and we're probably looking [00:03:17] at a taxable value for this area, about $2 million to the benefit of the city to construct [00:03:23] this site here. [00:03:25] So the recommendation, the request is to allow the city manager to enter into an agreement [00:03:30] to sell this partial to AG Development for the construction of this facility. [00:03:35] Thank you. [00:03:36] Open it up. [00:03:37] Let me just ask, I apologize, I have another piece here. [00:03:42] One of the concerns was, this is kind of the math on it, this is the .2 acres, this is [00:03:46] the whole parcel size here of 1.84 on the River Road Church property. [00:03:52] We actually had it appraised on July 25th, 2016, and the sales capital came out at $320,000. [00:04:03] The breakdown per acre was $173,000. [00:04:06] And so the value of that property based on that appraisal would have been $34,783. [00:04:12] AG Development has offered $35,555. [00:04:18] And just we were concerned whether we needed to update this appraisal or not, or kind of [00:04:22] look at it again. [00:04:24] And we looked at actually, in the during appraisal, they used a just value of $255,000. [00:04:32] When I actually looked at the following year, the property value had declined by about $6,000, [00:04:36] it had declined again. [00:04:38] So we just felt that there wasn't a need to update appraisal, that this offer should still [00:04:43] stand. [00:04:45] Thank you. [00:04:46] I'll open this up for public comment. [00:04:51] Please come down and please identify yourself. [00:05:03] Wendy Brenner, 7224 Grand Boulevard. [00:05:08] First of all, the appraisal, I don't know who these people are, but they said that all [00:05:14] the utilities come from the county. [00:05:17] Hello? [00:05:18] Is that not in the city? [00:05:20] Do we not provide the utilities for our building, the church building, the church property? [00:05:28] It says here Pasco County for the electric and the water and the sewer and police and [00:05:33] fire and everything. [00:05:35] So that was kind of like, do these people not know where they're appraising the property? [00:05:42] And they also said that there was a few developing sites along US 19, including Lone Star. [00:05:48] Lone Star hasn't been here for more than 10 years, so I don't know where they were [00:05:52] getting their information. [00:05:58] I think it's fantastic that they want to come here, but I just have sort of a thing about [00:06:04] the church property and our ability to market this property. [00:06:10] In the drawing, in one of the pictures, it shows proposed, it shows the property A and [00:06:19] then proposed B or future B and C. B is the, I guess, the current piece that they want [00:06:32] to buy. [00:06:33] Sorry, I've got to get the map out here. [00:06:36] It says parcel, or phase one, future phase two, and CRA-owned property. [00:06:42] So they intend to buy phase two also? [00:06:47] They intend to buy that building, the bank? [00:06:51] I think... [00:06:52] In response to the question, if you'll allow me to swear it is their intent to purchase [00:06:56] the original property. [00:06:57] I just have an idea. [00:06:58] They are. [00:06:59] They are intending to buy it. [00:07:00] They haven't purchased it yet that you know of? [00:07:04] I'm sorry. [00:07:07] They've been in discussions with SunTrust and my understanding is that they're coming [00:07:12] very close to closing on that property. [00:07:14] Okay. [00:07:15] Since we have a bargaining chip, this little piece that they want, can we talk to them [00:07:22] about getting access to 19 for that church property? [00:07:25] Because it will make marketing the church property a whole lot easier and better if [00:07:30] they have 19 access. [00:07:32] So if they in fact are going to buy this building, the bank building, it could very [00:07:39] easily, you can very easily incorporate like where the drive-thru goes in all the way back, [00:07:47] it goes straight into this property. [00:07:49] Then we would have 19 access for that property, which would make it more valuable in my opinion. [00:07:56] Just my opinion, just an idea. [00:07:58] It's a bargaining idea at this point since we have a little room. [00:08:02] Thank you. [00:08:03] Thank you, Ms. Brunner. [00:08:04] I can respond to that. [00:08:05] If you would, please. [00:08:06] So the site plan for the Aldi building, as well as the building immediately to the north, [00:08:13] which is called Retail A, is nearing completion through the development review process. [00:08:20] And it actually is shown on the phase one site plan, access from US 19 to the west, [00:08:29] heading to the east, which will include the two-tenths of an acre partial the city owns, [00:08:35] and it will eventually continue further east to River Road. [00:08:39] So on the site plan at the north end of the room, the access point is shown here, and [00:08:44] the access will travel through phase one here, continuing to the piece that you are contemplating [00:08:50] selling tonight, and then it will continue over to River Road in a future phase. [00:08:54] That's how the site plan lays out today. [00:08:59] Thank you, Ms. Spears. [00:09:02] You're welcome. [00:09:05] Anyone else in the public? [00:09:06] I'll bring it back to the CRA. [00:09:09] Questions for staff? [00:09:10] I have a question. [00:09:11] So what's the plan with Walgreens then? [00:09:14] Is there one? [00:09:18] It's owned by a different developer. [00:09:19] I'm sorry, Ms. Maynes. [00:09:20] That's okay. [00:09:21] I didn't know where the question was being directed. [00:09:24] Just whoever wants to answer it, who's qualified to answer it. [00:09:27] I can tell you that we've approached Walgreens, and I'll tell you quite frankly... [00:09:37] There's a lot of movement currently. [00:09:39] The good news that I think Mr. Iazzoni's trying to communicate to you is that there's a lot [00:09:45] of interest in the parcel. [00:09:48] Encore Development Company is the primary company that is interested in purchasing the [00:09:56] Walgreens. [00:09:57] They do have several different redevelopment options for the property, though, and they [00:10:02] have not solidified a final plan. [00:10:05] Just to add to that, we've been trying to... [00:10:07] From the jurisdiction manager, we've really been trying to take advantage of that location. [00:10:13] We really kind of add value to the entrance of the city, and quite frankly, I had conversations [00:10:19] with them even before I just left work today. [00:10:25] Those conversations are good conversations, but again, like all projects, it's a matter [00:10:30] of kind of putting all the pieces to the puzzle together, and I'm really encouraged with what [00:10:34] we've seen there. [00:10:35] I'm really encouraged with the interest we've seen in that property, and I think that's [00:10:38] a positive. [00:10:39] Good. [00:10:40] That's a good enough answer. [00:10:41] There's a lot of rumors going around out there with the public. [00:10:42] It's not a good thing. [00:10:43] People are instant messaging me on Facebook saying, I heard Ollie wants to move here, [00:10:47] but the city doesn't want to deal with him, and just horrible rumors going around, so [00:10:51] I'm just trying to get a little bit of clarification publicly without disclosing too much information. [00:10:55] Then my next question is the SunTrust building. [00:10:58] Any idea what type of businesses are wanting to put there, or are we not there yet? [00:11:02] We aren't... [00:11:03] Because it impacts... [00:11:04] I'll go back to your previous question. [00:11:08] One of the things that... [00:11:09] The reason why this was delayed so much is that they had requested some additional assistance [00:11:13] from the city, and we weren't willing to kind of go that distance, and then they had come [00:11:18] back and continued with the process. [00:11:19] It was kind of a big ask for the whole assembly on there, and those conversations always kind [00:11:25] of go back and forth. [00:11:28] There's just some really strong interest in both the SunTrust property and the Walgreens [00:11:33] property, and I'd be getting ahead of myself, like I said, if there was something kind of [00:11:37] moving there, but I am in conversations with the scenarios that could have kind of occurred [00:11:44] there. [00:11:45] AG Development could possibly expand in there. [00:11:47] Other individuals can come to their property. [00:11:49] I'm trying to put that together, quite frankly. [00:11:51] Good enough. [00:11:52] Thank you. [00:11:53] Any other questions? [00:11:54] Counselor? [00:11:55] Yeah, sure do. [00:11:56] I understood that some of the ask was they were trying to get some 19 access from north [00:12:04] to south, trying to get it to where they could have a left-hand turn into the center. [00:12:10] I understood that. [00:12:11] That's number one. [00:12:12] About Walgreens, I understood that it was close to being sold, but there wasn't any [00:12:17] viable use, and then on the SunTrust property, obviously they want to tear it down because [00:12:21] SunTrust wants a new freestanding thing out closer, and then we'd have retail shops. [00:12:27] So in response to those comments, regarding the access, yes, the developer, AG Development, [00:12:33] did seek some changes to access along US 19, but they did not pursue those through FDOT. [00:12:40] So what you see on that plan, which is not the final plan, is fairly accurate. [00:12:45] They are not looking for any amendments to the median on US 19. [00:12:51] The other suggestion you made was about SunTrust. [00:12:53] They're obviously interested in pursuing that as their phase two, and the understanding [00:12:57] we have is SunTrust is interested in maintaining its presence on US 19. [00:13:02] I'm not sure what your third... [00:13:04] Remind me of your third comment. [00:13:06] Same as always. [00:13:11] Third comment was that Walgreens, obviously, there's some development elements there, and [00:13:18] obviously we all see them building a new one down in New Port Richey, and we appreciate that, [00:13:25] but obviously, this corner, we've always wanted it to be more dynamic, and I think [00:13:35] initially that's where the crossover was initially discussed, but then it was taken down to Marine [00:13:43] Parkway, the elevated walkway that we got money for, that I'm sure will come back around, [00:13:49] because in New Port Richey, we've always been interested about making accesses on major [00:13:55] intersections interesting, and obviously making Main Street and 19 more dynamic, because we [00:14:02] make Gulf Drive and Grand Boulevard like an obstacle course over there, but that's a different [00:14:09] story for another day. [00:14:10] So... [00:14:11] So, Mr. Colson, in response to that comment, I would tell you that the Walgreens site is [00:14:15] ripe for redevelopment, and so the exciting part is the Encore folks are... [00:14:21] They want to be a partner with the city, and we've had meetings with them where we've conveyed [00:14:26] that we actually want to be a partner with them, too, so we're expecting to see them [00:14:30] come in with some redevelopment proposal that would redevelop that corner with something [00:14:36] that's going to benefit the city and meet our goals and objectives. [00:14:41] And the final thing is, I know you used the old appraisal for this, and it's got some [00:14:46] ambiguities. [00:14:47] It's got some... [00:14:48] It actually has mistakes in it. [00:14:51] Obviously this is .2 acres, it balances there. [00:14:55] We get a name brand, at least their stock is doing well. [00:15:00] and they've got other divisions and all that. [00:15:02] I would just say, though I won't be here, [00:15:06] that when it comes time to negotiate on that back parcel, [00:15:11] the one that we've owned for a long, long time, [00:15:14] that we get a top-notch appraisal company to look at it. [00:15:19] They use current information. [00:15:22] They don't give discounts. [00:15:25] Because at the end of the day, [00:15:27] the impact of that, making that whole development, [00:15:31] and if you got two million with Aldi, [00:15:33] and you do the other, and there's two million there, [00:15:35] and you do the back one, it's a million five. [00:15:37] You take parcels here that are somewhere, [00:15:40] value around, I don't know what the city's value is [00:15:43] on River Road, but let's say you got 2.5, [00:15:46] next thing you got six, seven, eight million dollars [00:15:49] sitting there, along with the CRA equivalent. [00:15:53] Sure makes up for a lot of other developments [00:15:55] that we weren't able to get to come to conclusion last year. [00:15:59] So obviously it pulls all that together. [00:16:03] Any other comments? [00:16:07] No, I respect the fact that we have to be careful, [00:16:10] because nothing's for sure. [00:16:11] I'm just very eager to find out what their plans are [00:16:14] for these additional parcels, what type of retail [00:16:17] they're looking to put in there, [00:16:18] whether it be the Walgreens or behind, [00:16:21] where the new SunTrust Bank would go out towards the 19th. [00:16:24] I know you have a vision in your head [00:16:26] where we're heading with the city, [00:16:28] and I trust you, I'm just eager, I guess. [00:16:32] They evolve, and all of a sudden you can get a call [00:16:34] at 505, and all of a sudden, [00:16:37] there's some really exciting things, [00:16:39] and for the past two hours, I'm in conversation. [00:16:43] I think the best thing to say is we are in good conversation [00:16:45] with the Walgreens people, and they pick up the phone [00:16:48] right away, they get back to us right away. [00:16:51] Aging development and other individuals [00:16:54] might be interested in looking at that site. [00:16:56] The conversations are always good, [00:16:57] and we hope that we can bring them all together [00:16:59] to really make that river gate come alive at some point. [00:17:03] Deputy Mayor, I could also address that as well. [00:17:06] We didn't mention this, but one of the other points [00:17:09] we wanted to bring to you is that we are expecting [00:17:13] that the property owned by AG Development [00:17:16] will be rezoned as part of a planned development district, [00:17:19] which will give you the ability to review the uses [00:17:25] that would be proposed as part of the plan, [00:17:27] as well as the development standards. [00:17:29] So it's not happening with phase one, [00:17:31] but with future phases, including the balance of the site [00:17:34] that the CRA owns, we would be looking at all of that [00:17:37] rolling into a planned development district zoning. [00:17:44] Any further questions? [00:17:46] Entertain a motion. [00:17:47] Move to approve. [00:17:49] We have a motion. [00:17:51] Second. [00:17:52] Second, to the maker. [00:17:55] It's exciting times, and there'll be a lot [00:17:57] of movement and stuff, and I anticipate [00:18:01] that if they want to partner with us, [00:18:04] just like everybody else that's partnered with us, [00:18:07] I expect them to come with their checkbook. [00:18:12] I won't be here, but I would expect people to be here [00:18:15] that they come with their checkbook, [00:18:17] and that obviously we'll be asked to help participate [00:18:21] and make it all come together. [00:18:23] But it really would be a big, this would be the first time [00:18:26] that I can remember that intersection being that dynamic [00:18:31] since 1964 to 75, because as I tell the old story, [00:18:39] my dad had his clothing store next to the theater. [00:18:43] He moved it out next to Nisner's, [00:18:45] and then he was one of the first stores in Southgate [00:18:50] before the economy caught up with him [00:18:52] in the late 60s, early 70s, so it is dynamic [00:18:55] that Main Street will once again be defined [00:18:57] by being called Main Street. [00:19:01] Thank you. [00:19:03] To the second. [00:19:04] No, it is exciting. [00:19:05] I'm not sure what happened here. [00:19:07] Nothing more. [00:19:08] I'm not sure, okay. [00:19:12] I'm quite surprised that that .2 acres [00:19:17] wasn't part of the US-19 parcel to begin with. [00:19:20] It's sort of an odd piece that sits smack in the middle [00:19:23] of where some asphalt is today, so sort of odd. [00:19:28] But anyway, if there's no further discussion, [00:19:31] all those in favor, please signify by saying aye. [00:19:33] Aye. Aye. [00:19:34] Opposed, like sign. [00:19:35] Before I adjourn the meeting, I have a letter [00:19:38] from Bill Madem, which I suspect the rest [00:19:41] of you guys got as well. [00:19:44] If not, I'll get the city clerk to make copies. [00:19:48] He's making some suggestions about us looking [00:19:50] at the minimum square footage for housing, [00:19:54] and it's a well-written letter and includes [00:19:56] an article that was in the newspaper, [00:19:58] so I'll give that to the clerk and ask her [00:20:01] to make copies for everybody and also to provide [00:20:04] that to Mr. Izzoni and Ms. Fierce. [00:20:07] So with that, I would entertain a motion to adjourn. [00:20:10] Move to adjourn.

   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. 4Adjournment