On the agenda

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

   Approval of February 5, 2019 CRA Meeting Minutes

   approved

   The CRA Board approved the minutes of the February 5, 2019 CRA meeting.

   • motion:Approve the minutes of the February 5, 2019 CRA meeting. (passed)

   #February 5, 2019 CRA Meeting Minutes

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   [00:00:22] Next item is the approval of the minutes of the February 5th meeting. [00:00:25] Move for approval. [00:00:28] Second. [00:00:29] Any discussion? [00:00:30] All those in favor, please signify by saying aye. [00:00:32] Aye. [00:00:33] Aye. [00:00:34] Opposed? [00:00:35] Like sign. [00:00:36] 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.

3. 3

   Resolution No. 2019-07: 2019 CRA Update and Sunset Provision Extension

   discussed

   The CRA Board considered Resolution 2019-07, recommending to City Council adoption of an updated and amended Community Redevelopment Plan, including an 18-year extension of the CRA sunset date from 2031 to 2049. Staff and consultants presented the plan's seven chapters, financial projections showing strong growth and debt-service capacity, and strategic redevelopment areas including the former community hospital site, US 19/Rivergate/Main Street Gateway, and Magnuson land assembly. Board members discussed potentially expanding focus to the west side of US 19 from Main Street to Green Key Road and confirmed the CRA remains a single citywide district.

   Ord. Resolution No. 2019-07

   • direction:CRA Board considered Resolution 2019-07 recommending adoption of the updated CRA Plan with sunset extension to 2049, with discussion of potentially adding the west side of US 19 from Main Street to Green Key Road as a future plan amendment. (none)

   📍Hacienda📍US 19 Carter, Rivergate, and Main Street Gateway📍US 19 Carter, Southgate, and Magnuson Land Assembly📍former community hospital site📍leisure lane area📍west side of 19 from Main Street to Green Key Road🏢HCA🏢Kimley Horn🏢Leverox🏢Magnuson👤Director Starkey👤Ken Kravling👤McGurn👤Mr. Holman👤Mr. Izzoni👤Mr. Klepper👤Mr. Reminger👤Ms. Manns#1989 original CRA plan#2001 CRA plan#2012 CRA plan#2019 CRA Plan Update#CRA sunset extension to September 30, 2049#Chapter 163 Part 3 Florida Statutes#Community Development Block Grant#Finding of Necessity#Great Recession of 2008#Land Development Review Board (LDRB) review#Resolution 2019-07#Section 163 Part 3.36 Modification of Community Redevelopment Plans

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   [00:00:37] Next, Resolution 2019-07. [00:00:38] Resolution 2019-07, a resolution of the Community Redevelopment Agency of the City of New Port Richey [00:00:44] recommending to the City Council of New Port Richey adoption of an updated and amended community [00:00:49] redevelopment plan, including extension of the time certain for redevelopment activities [00:00:54] in tax increment revenue funded activities through September 30, 2049, and providing [00:01:00] an effective date. [00:01:01] Ms. Manns? [00:01:02] Yes, sir. [00:01:03] Mr. Mayor. [00:01:04] As all of you are already aware, the city's community redevelopment area plan has been [00:01:12] adopted under the provisions of Chapter 163, Part 3 of the Florida Statutes. [00:01:20] Originally, the plan was adopted in 1989. [00:01:25] It was also updated in the years 2001 and 2012. [00:01:32] The 2019 community redevelopment plan update contains several chapters that define the [00:01:42] existing state of the area as well as representing the community's input for the future of the [00:01:50] New Port Richey CRA. [00:01:53] In addition to the content of the plan, I want to make specific note of the fact that [00:02:01] it does incorporate an extension to the CRA from its current termination year of 2031 [00:02:10] to 2049. [00:02:12] That is an 18-year extension. [00:02:16] It is the farthest out that we can go under the current sunset provisions of the law, [00:02:22] and we would like to do so in order to complete the programs and projects of the CRA. [00:02:30] And with that, Mr. Izzoni has a short PowerPoint. [00:02:39] Thank you very much, Executive Director, and thank you very much, Board. [00:02:44] The city manager did a great job introducing some of the basic points that we're dealing [00:02:47] with. [00:02:49] Two years ago, we went out on RFQ to find a consulting firm, Kimley Horn here tonight, [00:02:55] to assist with the update of the plan. [00:02:58] One of the key components you pay attention to is, though it took about two years to do, [00:03:03] about six months ago, the data that came in was really positive, and one of the real benefits [00:03:08] of going that time span was the fact that we had a better handle on our financial projections [00:03:15] and allowed us a lot more insight. [00:03:19] It's only about 10 slides here, but basically, as discussed, the Florida law basically regulates [00:03:24] how we have to go through this process. [00:03:25] I'm going to go over briefly the contents of the plan, but I'm not going to get into [00:03:30] detail there. [00:03:31] I'm going to talk about the sunset provision reset, and then I don't know if you read the [00:03:37] resolution, but I read the resolution already here that is required to be able to do this. [00:03:44] It's regulated by 163 Part 3.36, Modification of Community Redevelopment Plans, and I'm [00:03:52] going to get a little bit more into this slide a little bit later on, actually. [00:03:56] The plan update actually consists of basically seven chapters. [00:04:02] It builds on the 2012 CRA plan, which was important. [00:04:06] We felt that those components were effective, and it was helpful to do that. [00:04:10] It conveys existing conditions and growth trends. [00:04:14] It details the community engagement that was involved, listening to community feedback [00:04:20] and envisioning efforts that are in the plan. [00:04:22] It also provides for financial analysis and budgeted forecasts, and it details the targeted [00:04:28] redevelopment and strategic initiatives. [00:04:33] As part of the public involvement, listening to community, the consulting firm in conjunction [00:04:39] with the CRA conducted several stakeholder interactive roundtables. [00:04:43] They solicited public opinion, which is discussed in more detail in the plan, and what the community [00:04:48] had to say. [00:04:49] They also did some preference surveys where we focused a little bit more on people that [00:04:53] had a little bit stronger connection to the community. [00:04:57] And the areas of focus were what are the community needs, where do the opportunities lie, and [00:05:03] how can the community successes be leveraged. [00:05:13] The financial section is rather interesting, and again, as we kind of got to the end of [00:05:19] this process, we were able to really ratchet down our numbers. [00:05:23] One key component here, basically, is that we know that for quite a number of years there [00:05:28] was challenges in terms of just basically making the plan solve, and a key component [00:05:33] was the refinancing of that bond up to about 2.5% interest rate that really kind of helped [00:05:40] the plan out. [00:05:42] So currently, we're experiencing about an 8.7% growth rate in the CRA. [00:05:47] The fund balance is actually $4,000, but the reason for that is largely due to the fact [00:05:51] you have McGurn's big payment sitting in there. [00:05:53] So one of the things that I pay close attention to in the CRA plan is its ability to look [00:05:58] with the eight to debt, because that's what the challenge that the plan had for several [00:06:02] years as the economy kind of tanked during the Great Recession. [00:06:05] But if you look five years out, we have this very strong growth rate, and Ken Kravling [00:06:11] and I discussed this in depth in terms of what would that number be, and we continue [00:06:15] to see solid growth going forward in time. [00:06:18] Five years from now, we have about $6.4 million in excess funds to kind of work with. [00:06:23] And this is the key component here, that we're able to successfully service the existing [00:06:27] bond that occurs, plus also the money that's kind of owed back to the general fund, we've [00:06:32] estimated to be about $600,000. [00:06:34] So the plan is going to be able to comfortably service the debt that's currently, or the [00:06:40] revenue that comes from the tax increment is going to be able to successfully service [00:06:43] that debt. [00:06:44] If you go out 10 more years, we have about $22 million in the fund balance in terms of [00:06:50] cumulative to work with. [00:06:51] Again, our capacity to service the debt continues to improve. [00:06:56] And then if you go out 20 years, and the reason I do 20 years is because that's the [00:06:59] typical time frame for doing a bond, if you ever consider that. [00:07:02] And again, you can see the accumulation of funds that you're working with. [00:07:05] So one of the nice parts about taking the time to do this plan correctly was it really [00:07:10] gave us a real good, strong insight that the plan has the capacity to do what it needs [00:07:15] to do going forward in time. [00:07:17] Again, key components here is that for looking to financial health improves, it provides [00:07:23] the opportunity for bonding capital projects. [00:07:26] The growth rate remains solid. [00:07:29] Fund balances continue to improve. [00:07:31] And again, it has the capacity to service debt and actually improves. [00:07:35] And again, this is just a little bit of a detail in your book in terms of what that [00:07:38] looks like. [00:07:41] Key component of the CRA plan are the strategic action plans. [00:07:46] And we actually work on quite a number of these pretty much on a daily basis. [00:07:49] But these are the targeted redevelopment districts here. [00:07:52] The former community hospital site, I talk to the city manager often. [00:07:57] We're in constant conversation with HCA. [00:08:01] And we have some, quite frankly, I'm just trying to back up here. [00:08:06] If you go back and read the 2001 CRA plan, the reason why the city went to a citywide [00:08:11] CRA was the improvement of the existing housing stock, okay? [00:08:16] And we struggled at trying to get to that level, and that was the explanation as to [00:08:20] why they did a citywide CRA. [00:08:22] And I think there's a real opportunity here on this site to do 4-cell housing and to really [00:08:26] look at being able to do something there, because it's a large piece of land that's [00:08:32] available. [00:08:33] And I think it kind of works with the schools that surround that property, and we're constantly [00:08:36] working on this. [00:08:37] The US 19 Carter, Rivergate, and Main Street Gateway, we work on that constantly. [00:08:42] There's a real opportunity there. [00:08:43] We've kind of really held the line in the fact that this should be connected to the [00:08:47] city. [00:08:49] I was just down at the Magnuson this afternoon, and the US 19 Carter, Southgate, and Magnuson [00:08:53] Land Assembly is a great opportunity. [00:08:55] And again, there's always ongoing conversations there. [00:08:58] You know, you're just looking at the challenges from a business owner's perspective. [00:09:01] If we put a restaurant there in the old Leverox building, where do we find the staff? [00:09:05] All those details of opening up a business is what they work for, and they are actively [00:09:10] looking for somebody to go into the Leverox facility. [00:09:12] Mr. Raizoni? [00:09:13] Yes. [00:09:14] Can I just point out, I pointed out at the last CRA meeting that I think we should also [00:09:19] look at, maybe it's up there. [00:09:20] Are these lights brighter than normal, or is it just me tonight? [00:09:23] They are warmer. [00:09:24] Yeah. [00:09:25] The reflection off the sides is killing me. [00:09:28] But look at the area on the west side of 19 from Main Street to Green Key Road as well. [00:09:33] I think that's really, it's got a huge shopping complex for the old motel that's there right [00:09:39] now. [00:09:40] And I just think it's an opportunity for some really, really great development ideas. [00:09:44] Yeah. [00:09:45] I think we might be able to address that. [00:09:46] And one of the things we're going to discuss a little bit is the annexation going forward [00:09:48] and those strategies associated with that. [00:09:50] I don't think that we got, we've highlighted that in the plan, if I'm not mistaken. [00:09:55] But it was something that we can update the plan and include it and add it in the plan. [00:10:00] We're not limited to being able to bring that to. [00:10:02] But you make a really good point. [00:10:03] Yeah. [00:10:04] If it's in the will of my colleagues, I just, I think it's a prime area for Main Street [00:10:08] and a gateway out to the Gulf of Mexico as well, right there on Green Key Road. [00:10:12] Is this the point where we're going to get involved in a discussion or what, if we let [00:10:17] you finish? [00:10:18] No, Mr. Holman. [00:10:19] I was just making my point. [00:10:20] My apologies. [00:10:21] My point, no, no. [00:10:22] My point is I've got some things to say as well. [00:10:23] That's all I had. [00:10:24] Sorry. [00:10:25] Well, I mean, that's the reason why we look at that excess cash flow. [00:10:28] You know, there is the capacity to do that in the plan and address those issues going [00:10:31] forward. [00:10:32] And obviously, we'll take direction as required. [00:10:37] I'm just kind of highlighting the basic components in the plan. [00:10:39] But you're right. [00:10:40] There's a lot of detail in the plan. [00:10:42] But it's something that I think working with City Manager could be addressed. [00:10:45] I didn't mean to interrupt. [00:10:46] I'll hold the rest of my comments until the end. [00:10:50] Obviously, a hostie end in the property across the street, leisure lane in that area. [00:10:55] The plan talks about that. [00:10:57] And then there's the annexation. [00:10:58] And we're going to cover that a little bit later on in terms of a continued service agreement. [00:11:02] This requires a finding of necessities. [00:11:05] One of the reasons why we tried to move this update to this point in time is that the finding [00:11:09] of necessities can take a considerable amount of time. [00:11:13] We wanted to be able to make sure that, you know, currently a legislator is considering [00:11:18] basically addressing the time limits on CRAs. [00:11:22] And we wanted to kind of get this resolution in place and set it. [00:11:25] That's why we felt it was important to go through the update and the time extension [00:11:29] and then come back with the annexation issues. [00:11:36] The sunset provision, what we're asking to do, basically, is to add 18 more years to [00:11:42] the existing plan, which would expire in 2031 and reset that to 2049. [00:11:50] The statute's quite clear in terms of how you would address that and the modification [00:11:54] of community redevelopment plans. [00:11:57] A change in the sunset dates requires a plan amendment. [00:12:01] You must comply with the city comp plan. [00:12:03] And what we did was we did submit that to the LDRB for review. [00:12:06] They had a whole month to look for that and they came back and adopted the plan. [00:12:11] We have publicly advertised our intent to basically change the sunset date. [00:12:18] We did provide adequate notice to the taxing authorities. [00:12:21] They were all sent registered and certified letters within the time frame that was required. [00:12:28] We sent them to all taxing authorities, not like mosquito control, all of them out there. [00:12:34] And there's two resolutions. [00:12:35] This is the one that you're considering right now. [00:12:37] It's the 2019-07, sorry, adoption. [00:12:40] And then we're going to come at you during the council session with the second resolution [00:12:44] here. [00:12:45] One of the things that we did early on to make sure that we were within compliance is [00:12:49] we reached out to a law firm that provides advice on government compliance and they issued [00:12:55] an amendment. [00:12:56] And we're following that process based on the recommendations of the firm and also our [00:12:59] city attorney had the opportunity to review and provide a critical comment also. [00:13:06] I always like to have a basis for why we extended the sunset provision and it's as the city [00:13:11] manager kind of highlighted and as what's highlighted in the plan is that the time extension [00:13:15] is necessary to complete the revised strategic initiatives. [00:13:19] The Great Recession had a significant impact and this is the reason for extending the CRA [00:13:24] and sunset date. [00:13:26] And just a little bit of history in terms of how CRAs evolve over their 30-year lifespan [00:13:31] is that in 2001 is when we kind of set the new boundaries here, but you have to let these [00:13:36] plans age for a little bit. [00:13:38] You have to lift the millage rate up to be able to generate some revenue to be able to [00:13:42] justify a bond at some point in time and that's exactly what happened. [00:13:46] From 2002 to 2005, the CRA plan aged, you're able to project basically what the growth [00:13:51] rate is and then borrow to be able to implement the actions of the plan. [00:13:56] So in 2004 and 2005, implementing the strategic action components of that, there were several [00:14:02] land purchases, things, you know, construction of a recreational facility, quite a lot happened [00:14:08] in those years, acquisition of the Hacienda. [00:14:11] So there were several CRA investments were made and then we had the Great Recession of [00:14:16] 2008 which really impaired the taxable values, dramatic decline in the taxable value. [00:14:23] So essentially, the CRA kind of evolved into basically a debt service entity and the land [00:14:28] values were significantly impaired and it was a total of about 11 years that this occurred. [00:14:33] The millage rate had to be increased and if you didn't do the increase in the millage [00:14:36] rate, you wouldn't be able to service the debt that was currently in the CRA and nobody [00:14:42] can kind of predict that. [00:14:43] We had to bail out the auto industry in that period of time, we had to bail out the banking [00:14:46] industry in that time, quite a bit happened. [00:14:49] So I don't, we just never addressed that in a way, maybe a workout, how most of the other [00:14:58] industries would have worked out their problems. [00:15:00] back then. We basically tried to repair the plan, let it get better, and by 2019 [00:15:05] there was a CRA recovery. 11 years did lapse. The millage rate, but here's a key [00:15:13] component. The millage rate didn't really return to the 6.25 [00:15:18] mils to the 2002 levels, and the goal of the CRA plan is to elevate the [00:15:22] taxable values to generate enough revenue and to address a lot of the [00:15:26] blight issues, and you'll see that in the last chart coming up here. And so we [00:15:32] need basically additional time to implement the strategic initiatives [00:15:37] as results, and pretty much the resolution kind of details that and the [00:15:42] necessary components of that. This is a graphical perspective. These are your [00:15:47] millage rates from the inception of the CRA plans. Again, you can see [00:15:52] here that 6.25 mils was the millage rate back in 2002-2001, and then it was [00:15:58] increased a little bit, and that's what happens here. This is the county millage [00:16:01] rate, okay, so as this declines, taxable value is actually increasing, or they're [00:16:07] trying to drive down the millage rate. And here the city actually kind of lifted [00:16:11] this millage rate a little bit, and this is the bonding phase here, and then we [00:16:15] had the collapse of the real estate market, and they'd be able to keep the [00:16:18] CRA solvent. Pretty much we had to, as the property values declined, we had to [00:16:22] raise the millage rate as a result. So you have what is what we call, in my [00:16:27] industry, an impairment of the revenue stream. So then we have a curing of it, [00:16:32] and again, council's effort is to drive down the millage rate, and if you read [00:16:37] in the CRA plan, one of the big things that's affecting the city in terms of [00:16:40] capital investment in the city is, you know, you know, Port Rich is 5.4 mils, [00:16:45] we're at 8.9 mils, and so entrepreneurs, when they see that, it becomes a cost [00:16:49] factor for them. So basically what we're saying is that, taking about 18 more [00:16:53] years, we want to drive the millage rate down in this direction here, okay, and [00:16:59] we have an improving of property values, and that's why you're kind of seeing a [00:17:02] slight decline here, but we're not back to this 2002 level, and that's the goal, [00:17:07] is to return back to that. Okay, thank you very much. If there's any questions, I'll [00:17:14] take them at this time. Questions? Yeah, just comment-wise, and I guess maybe [00:17:22] there's a question in it too, playing off of Director Starkey's comment there [00:17:28] about some areas we see in the plan. There was a point when there was some [00:17:34] advocation of establishing districts, but this plan, as I [00:17:42] understand it, is an extension of the entire area. There's been no effort to [00:17:46] release or remove any areas from the plan. When we do an annexation, we can [00:17:51] always contract and extend, so this is not something that we have to settle [00:17:55] today. So I understand, and that's not an argument to be had at this point in time. [00:17:59] I'm happy with that. But it is a CRA of the entire boundary, mostly, and so [00:18:12] when we talk about districts, you know, that would be like in the city of [00:18:17] Gainesville, where they have 12 or 14 districts, and the money that's collected [00:18:22] in that district stays in that district, which became problematic when one area [00:18:26] is really successful, and it has pressures at it that it's time to say [00:18:31] it's over, and an area that really wasn't attracting development that really needed [00:18:36] it, let's just say the new area that you're talking about, didn't have access [00:18:40] to those higher revenue streams. So I'm also in agreement that this is one CRA. I [00:18:46] had advocated otherwise, and I can be my own devil's advocate as well sometimes [00:18:51] and talk myself in and out of things. I think it's a healthy exercise, you [00:18:56] know, to look at all sides. So I'm just confirming on the record that what you're, [00:19:02] when you're saying these are strategic plans or places that if an investor [00:19:07] comes in and sees something that's outside those areas, they still have the [00:19:11] ability, through our plan, to develop and locate wherever they can. So I'm [00:19:18] interpreting what I'm hearing, and I just would like some clarification that I'm [00:19:22] right, that we have identified some strategic objectives, but it doesn't, [00:19:27] as you've said before, it doesn't preclude us from looking at these other [00:19:32] areas and finding important and not having to wait for the, to, you know, [00:19:37] to act on opportunities. So, and I'm not, I'm not asking you to speak for a [00:19:45] minute because I just want to get my thoughts out, please. So the look at the [00:19:51] downtown, it said the Hacienda and the land across from it. Well, the [00:19:57] Hacienda will be completed, so I'm not so sure what effort is left to do on the [00:20:02] Hacienda. Our plan is a look forward plan. The land across from it, you mentioned [00:20:07] the immediate land across from it, but I also know we have forthcoming soon a [00:20:13] report on all the alleys in town, and we have an initiative that the city [00:20:19] managers brought to us to use community development block grant monies to start [00:20:23] to put the housing element. I know that the larger plan, and maybe when we get [00:20:28] Mr. Reminger or Mr. Klepper up here too, to reassure or that, you know, that these [00:20:35] areas are identified and that we can take action on them, includes the [00:20:41] rehabilitation of our older neighborhoods, includes the ability for [00:20:45] us to come up with a strong plan to deal with our alleys, our parking. So, you [00:20:53] know, the city took a bold move to extend beyond the downtown to the entire city, [00:20:59] has a good revenue stream. I'm following all of what you're saying, but if we [00:21:05] could go back to the slide with the revenue, when you were talking about [00:21:08] how much money would be in the fifth year out or the tenth year out, there's [00:21:14] two issues that I would like to maybe determine how it's premature for us to [00:21:23] identify the strategy to the level that you've mentioned it. [00:21:29] First of all, to say that I was involved in over 25 community development [00:21:36] districts, including the bonding of those districts, including suing the state [00:21:42] for bond validations, and all of those plans were infrastructure plans that [00:21:48] would put in infrastructure in these new communities, and they all, every one, was a [00:21:54] 30-year bonded infrastructure plan. So, I'm not sure what experience you have, [00:22:00] other than I know that there's some statutory, you know, there's some [00:22:05] thoughts about 20 years is enough, but if we were going to build sewer lines, if we [00:22:11] were going to build a city utility or drainage project, I believe that it [00:22:17] would be more normal that that would be a 30-year investment. [00:22:22] So, if we were to do something now in a public-private partnership, then we would [00:22:30] see that the numbers that are in your strategy, which is based on the growth [00:22:33] rate, I don't know how much you factored in new investment and new development in [00:22:41] to the numbers, you're talking about a growth rate of the property values, but [00:22:45] I'm talking about, you know, we've heard recently someone would come in with a [00:22:50] $30 million project, that's going to add $30 million, that's a brand new [00:22:56] increment, and that's a whole different revenue stream over and above the [00:23:01] revenue stream that you're identifying now. So, I would just like to say on the [00:23:05] record, these numbers are going to change as we see what investment is brought into [00:23:09] the city, and when those investors come in, I just want to reenact the discussion [00:23:15] we had before for the record to say, when we had our first 30 years, because we're [00:23:22] halfway through 60 now, the investments that were made there were speculative in [00:23:27] nature with respect to the Baptist Church, the churches we purchased, there [00:23:31] were some actual projects that were done, I think, by Mr. Deeb, where he built some [00:23:35] new housing in town, and he fulfilled that from a residential basis, but those [00:23:42] projects did not have the guaranteed partner to go into it with it. So, we had [00:23:49] a discussion as a council that we would be looking for partners that would say, [00:23:54] if we built the infrastructure, if we participated, then you're going to put [00:23:59] some property value on the tax rolls. So, not that we would not find that we would [00:24:05] have to look at existing revenue streams that when we hadn't on, as you properly [00:24:10] pointed out, when it started in 2002, there wasn't a whole lot, just a little [00:24:14] downtown district, which didn't amount to a whole lot of revenue, but we're coming [00:24:19] into the second 30 years, as you properly pointed out, extinguishing debt, [00:24:26] extinguishing obligations other than the debt that's on there. So, I liked your [00:24:30] first slide with the 30% of debt coverage being 30%. The 95% debt coverage in your [00:24:42] first slide is current. You're saying that 95% of the balance, could you explain [00:24:49] those slides? [00:24:49] This is the revenue. Basically, because it's a budgeted year, we fully budgeted [00:24:55] on it, we're committed to all those projects. What's impacting that is the [00:24:59] McGurn payment. [00:25:00] I mean, just to explain, what do you mean by debt coverage ratio, 95%? [00:25:05] Right. That's basically CRS capacity to liquidate the debt. In other words, [00:25:09] prior to this, if you look at those ratios, they were very poor. They were 60, [00:25:14] 70%. You know, I probably could, it's mainly that, I guess what I'm trying to [00:25:19] emphasize here is that for several years gone, we've been a debt service [00:25:23] entity. That's all we've had the capacity to do. This is probably the, you know, [00:25:28] one of the, you know, and we were able to fully absorb the incentive payment to [00:25:33] Maitreya Landings with $1.475 million. If we were to back that out, that ratio [00:25:37] would improve significantly. [00:25:38] Oh, that would be year one, the ratio is significant. Not, we wait five years [00:25:45] until we can take action. In year one, you'll have your debt service coverage [00:25:50] reasonable within the revenue stream that's coming in. [00:25:53] You make really valid points. I was just trying to emphasize the fact [00:25:57] historically we've been kind of in this environment. This is probably the first [00:26:01] year that we had a little bit of breathing room. [00:26:03] I'm with you. I think that the thing I would like to just mention to my [00:26:08] colleagues is so that I have said it and we all at least acknowledge that the [00:26:18] projection that's up there is not anticipating additional major capital [00:26:25] improvements and higher property values. And it's also not anticipating any [00:26:33] major economic activity by the city. It would be as if we were sitting there in [00:26:39] a savings account watching that money grow over the years. And the whole [00:26:44] objective of the CRA is the same objective, which is get something in place [00:26:50] that increases property values, that stimulates the economy. And so [00:26:54] consequently, it's helpful. But I think as soon as the first next project comes [00:27:00] along, we'll need a new projection and a new look at it. [00:27:05] You're correct. I want to just address Councilman Stark's point, but you're [00:27:08] absolutely right. With the CPME, we really focus on protecting the downside [00:27:12] risk. And that's what those projections are, is what happens if everything [00:27:17] goes bad. And so those are conservative numbers. Like you say, if you do [00:27:21] implement the plan, you do have some tremendous upside. But just to kind of [00:27:25] address the Councilman's position here, one of our [00:27:31] greatest concerns was we felt we needed to kind of get the time extension in. We [00:27:35] felt we can always come and update the plan and look at the more [00:27:39] evolved issues in regard to that. The concern was looking at the legislation [00:27:43] and the fact that should they drop one of the provisions in the legislation, [00:27:47] then we would go into the next legislative year at a disadvantage. [00:27:53] We might not be able to go out the 30 years. That's why we kind of moved [00:27:56] this forward and tried to get this set as quickly as possible, because there is [00:28:02] some language in there. If it gets removed in the committee, which is the [00:28:06] quorum vote that's required to continue the CRA, if that gets dropped in the [00:28:10] legislative session, then we won't be able to extend the CRA out. So we wanted [00:28:14] to get this in before July 1. Thank you. Back to his point again, and I'm sorry if [00:28:18] I'm speaking more than I should, but can we go back to the slide that showed [00:28:23] those districts one more time? And if we do, I don't know, maybe because the Land [00:28:34] Development Review Board, and I'm looking to the attorney on this one, [00:28:36] because the Land Development Review Board has looked at this document that's [00:28:39] been presented to it. I'm kind of hearing approve this as it is, because if we [00:28:46] change it today, I would personally say, just looking at that, that we could, [00:28:52] where it says the Hacienda and nearby properties, we could say the city's [00:28:56] historical downtown district. You know, I'm not sure what strategic action plan [00:29:02] we have for the Hacienda, but the Hacienda is great, but you look at the, [00:29:06] you look at all that part in the downtown and all that part that isn't [00:29:10] colored in, and to me, I don't see any downside with enlarging it a little bit. [00:29:15] And to the Highway 19 issue, if the issue is we don't own it, and so we can't make [00:29:21] it a plan until it's annexed in, but I would say everything on the west side of [00:29:25] the highway, we could just color it in right now if we were able to, and say [00:29:28] that's our zone, we don't really know who is going to act first or who's going [00:29:33] to be prepared. So can you point out with your pointer where on the Highway 19 [00:29:39] corridor, you're saying the Magnuson Land Assembly, what you're suggesting is we [00:29:48] do CRA funds to help to highlight that area around the North Channel to do [00:29:55] something. I'm not sure what they want us to do. [00:30:00] then is there anything what else is west of the highway on your map is there's [00:30:04] nothing it's district up in here but I mean none of that as any of that part of [00:30:08] what's over on the left is that all what we call the corridor it's not colored in [00:30:14] or anything I think that was director was that your point that you didn't see [00:30:20] anything colored in over there because that's kind of I'm trying to get to what [00:30:24] you're trying to ask here I just I just pointed out the last area meeting I'm [00:30:28] sure if you want to call the whole Westside 19 from from Southgate the [00:30:32] bridge is fine with me that the smaller that I was looking at that I think is [00:30:36] just a great opportunity for to read for redevelopment once again as a Westside [00:30:40] and I came from Main Street to green key road green key roads the only access [00:30:44] directly to the Gulf of Mexico there there's an old hotel on the corner that [00:30:48] lot an older very large plaza and then just just some older buildings and a lot [00:30:55] of concrete I just thought it was a good area that we should possibly target [00:30:59] as well with an investor maybe a chain name hotel on that corner like I brought [00:31:03] up before where you could do you know golf cart tours down to watch the [00:31:07] sunset it at Robert K Reese Memorial Park it's just but if you want to if you [00:31:11] want to incorporate the whole Westside at 19 on the question is can we do it [00:31:19] now to me yeah it doesn't matter if we do it now I just want to point it I [00:31:22] think it's an area that we need to really target as well it's going to take [00:31:25] a long process to get it on there it would be good to put it on I don't know [00:31:28] that it'll take a long process okay director Murphy did you have any yeah [00:31:32] just piggyback a little bit on what I'm director Starkey was talking about on [00:31:36] the west side of Main Street there on 19 that that to me is like we need bare [00:31:43] bones I mean start with stormwater drainage I mean it's it's a really bad [00:31:47] shape over there I know some of it we don't own so that would be something to [00:31:51] look at but that would be a good project or something to put together for [00:31:55] appropriations for next year submit to Tallahassee also maybe in [00:32:01] conjunction with CRA money and even the county if they you know want to help out [00:32:06] with that so it might be a group effort on there too with some of that stuff [00:32:11] yes sir mr. mayor I just want to point out that the seven areas that are [00:32:17] identified in the targeted redevelopment districts are areas where [00:32:22] we think larger scale projects need to occur it is not though an exclusive list [00:32:29] of where funding can be appropriated and we do come to you every year with a [00:32:35] recommendation on a budget for specific project excellent excellent point I had [00:32:40] a question you had mentioned the community hospital redevelopment did I [00:32:44] hear you correct that you were thinking that might ultimately be an area that [00:32:47] could be redeveloped with affordable housing well you know and looking you [00:32:53] even we've been pursuing us because it's an opportunity zone we've been pursuing [00:32:58] basically memory care center system living facilities and quite frankly I [00:33:03] pulled back and looked at it and I looked at the Zimmerman bulk study and [00:33:06] then we looked at the gap in the marketplace for three to three bedroom [00:33:11] homes homes of 185,000 to 210 and we just started inquiring and bouncing it [00:33:17] off some builders and it was a very very strong interest in doing for sale [00:33:20] housing for that we were quite surprised and I'll let the city manager continue [00:33:26] with it in addition the only point that I'd like to notice we have had [00:33:30] discussions with HCA and they have indicated an interest in selling the [00:33:36] property and would do so for residential development they though would want it [00:33:41] to be the type of project that represented well on them so the the [00:33:46] price points would be at least 185 and it would be three bedrooms two baths and [00:33:51] that that's a from my understanding and I we've got a realtor in the back that [00:33:56] may shake his head yes or no but it's my understanding that's a part of the the [00:34:02] city stock that's pretty much missing at this point we've got a lot of little [00:34:07] tiny houses and we've got some very big ones we don't have a whole bunch in the [00:34:11] middle which these three bedroom two baths would would fit in with okay that [00:34:17] that's answered my biggest question and I know it's coming up on a council [00:34:25] meeting in the next month or so talking about the ADU issue it's proposed to [00:34:33] come up before you in the next month yes and that's that also addresses that [00:34:38] whole affordable housing issue we've got we've got a lot of balls in the air [00:34:45] right now with the council having put the the motels on notice that they need [00:34:52] to either clean up their act or close out on us-19 that are providing slum [00:34:59] housing for people that can't get into better housing and so we sometime in the [00:35:05] next three years we need to come up with some alternatives to to make sure those [00:35:10] people have a roof over their heads so I think this this probably works out real [00:35:16] well you know we've done so much work with the VA site that we have a [00:35:20] tremendous amount of information we just kind of tossed it out there was strong [00:35:24] interest in that idea it just fits well across the boards and into the original [00:35:28] 2001 concept of CRA in terms of building stock and you know the taxable [00:35:34] value would return to what it originally was when AC when the community hospital [00:35:37] was on the site in projection on how many homes has anyone I was going to say [00:35:49] before we take a motion to do something on it I'd like to open up for any public [00:35:54] comment that might be out there [00:35:56] I don't see anybody racing forward so I'll bring it back [00:36:01] Mr. Chairman I would like we've got our engineers coming from far parts of the [00:36:07] ones who designed it they've listened to us and if it's like anyone else they [00:36:11] probably have a few things on their mind if not I still like to test them out and [00:36:15] see if they can come up and tell us something [00:36:17] Come on down. We have with us Mr. Keith Grimminger and Kelly Klepper both of [00:36:28] Kimley Horne and Associates and they are the planners and architects that we and [00:36:36] engineers that we have worked with on the draft document before you this [00:36:40] evening and Mr. Grimminger if you could come up front and talk to the council [00:36:48] for a couple of minutes that would be great [00:36:54] good evening Keith Grimminger with Kimley Horne as Mario was saying earlier [00:37:02] that you know this has been about a two-year process it's gone through a lot [00:37:06] of reiterations as we've gone back and largely as we've looked at this and and [00:37:12] have been fortunate that during this time frame you know the the taxable [00:37:17] value is dramatically increased over the past few years in fact I was just [00:37:21] looking almost 9% from 17 to 18 alone and I think the projections that Mr. [00:37:29] Arizona put forth are very conservative especially as you go to the five year [00:37:35] 10 year and 20 year dropping those down so even those at those very conservative [00:37:41] projections we still so show the tip is going to continue to grow in respect to [00:37:47] the the projects last time we were before you presented another slate of [00:37:55] opportunities and we believe that those opportunities are well suited we've [00:38:00] identified as as miss man said a couple of the strategic larger scale [00:38:05] opportunities but the variety of the smaller scale opportunities will exist [00:38:10] throughout the entire city and as pointed out the nice thing about having [00:38:14] a citywide CRA is none of the areas are precluded from receiving some of those [00:38:20] TIF dollars if the project comes forward so with that we feel it's a very good [00:38:26] plan a very solid plan we hope the economy will continue to serve well but [00:38:32] I think we've made the appropriate considerations conservatively to show [00:38:37] how how the how the revenue source will be penciled out over the years one [00:38:44] follow-up on something that's not structural but that's been a topic which [00:38:50] is parking you know there had been a lot of advocation of a parking issue the [00:38:55] city's already taking action to try to improve its parking the event that's [00:38:59] going on now has for the first time had a park-and-ride and a low-speed [00:39:03] transportation shuttle those kind of elements are also identified in the plan [00:39:10] as I recall a number of options so in the in the larger plan that is being [00:39:16] that underpins this could you speak to that that's some yeah there's a couple [00:39:23] of different parking scenarios that have been done now what we've looked at [00:39:28] but you've had other consultants look at some some parking scenarios obviously as [00:39:32] the Hacienda moves forward its demand and needs for parking will be brought [00:39:37] forth glorious Watson lot is an obvious opportunity there we have also looked at [00:39:44] other sites for potential parking the the issue with structured parking is it's [00:39:51] it's rather expensive so the ability to be able to couple that with the [00:39:56] community's needs with a development where you can have the offset of [00:40:02] additional development more than likely from residential standpoint with [00:40:07] ground-floor retail to supplement that that cost of developing structured [00:40:13] parking but we have found in other communities where we where we have [00:40:17] worked structured parking is usually an alternative when the land is limited and [00:40:23] the demand is high but we have found it it basically adds about a dollar a [00:40:28] square foot to the rental rate so what would normally be a dollar and a quarter [00:40:33] per square foot could then very quickly be $2.25 so that balancing of what the [00:40:40] market could support from your rental standpoint as well as the additional [00:40:45] parking to serve the larger community those will be some things that will have [00:40:48] to be looked at but they have been have been talked about anything else [00:40:54] entertain a motion I'll take a motion to approve the extension of the time and [00:41:02] the resolution as presented yes I am a second to the major now we we've talked [00:41:08] about it all and I appreciate the fact that we put some stuff on the record [00:41:13] which I think could be very important if there is any need for us to defend [00:41:17] our actions it's really clear particularly that the economic downturn [00:41:22] as the as the argument for why we have such an extended time for us to recover [00:41:27] and the opportunity that we all see that's happening right now in front of [00:41:31] us and the ability for us to to act on that opportunity it's the most exciting [00:41:38] time and I've been in office 30 years I've been here this is the most exciting [00:41:43] time for me to be up here right now and I appreciate the ability for us to go [00:41:49] through this time period thank you to the second no just anxious to move [00:41:54] forward with these projects director Starkey I have nothing further thank you [00:41:58] in that case all those in favor please signify by saying aye aye opposed like [00:42:03] sign motion passes next community redevelopment annual report mr. mayor

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4. 4

   Community Redevelopment Annual Report

   discussed

   Staff presented the CRA's required annual report for fiscal year ending September 30, 2018, highlighting projects including the Hacienda Hotel, Main Street Landings, central residential project, business incentive grants, 5800 Main Street, Opportunity Zone designations, and the CRA 2019 plan update. A board member requested a map of the Opportunity Zones, which staff agreed to provide in the city manager's report and post on the website.

   • direction:Staff directed to provide a map of the Opportunity Zones in the city manager's report and post it on the city website. (none)

   📍5800 Main Street🏢Gibbs Planning Group🏢Hacienda Hotel🏢Main Street Landings👤Chopper Davis#Business Incentive Grant program#CRA 2019 Plan Update#CRA Annual Report FY2018#Florida Statute 163.356(3)(c)#Opportunity Zone designations#U.S. Highway 19 and Marine District

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   [00:42:10] the Florida statute 163 point 356 3c requires that each year the community [00:42:18] redevelopment agency report its activities for the preceding fiscal year [00:42:24] the report before you highlights the CRA activity for the fiscal year ending [00:42:30] September 30th 2018 and provides narrative specifically about the [00:42:37] following projects the Hacienda Hotel Main Street landings the central [00:42:42] residential project the business incentive grant economic impact downtown [00:42:49] rent rates and business count 5800 Main Street commercial redevelopment [00:42:54] properties the Opportunity Zone designations u.s. highway 19 and Marine [00:43:00] District and the CRA 2019 plan update and the Gibbs planning group market [00:43:07] studies now mr. is only a few words and respect to the very well done report [00:43:13] that he put together before you do that I would like the record indicate that a [00:43:17] director chopper Davis is with us good thank you very much directors and board [00:43:26] members just want to do is to plan that we've prepared it's required every year [00:43:32] basically kind of outlights the requirements of the plan in the first [00:43:38] page here an overview of the reason why we kind of introduce these plans in this [00:43:42] to be reporting annual basis you should know that the legislation that's going [00:43:47] to be implemented if it passes is going to require even more detailed [00:43:51] presentation of these type plans it highlights the CRA boundaries and it [00:43:56] talks about the various projects how the Hacienda Hotel which is something we've [00:44:00] been working on for many years progress we've made on that Main Street landings [00:44:05] and we're getting close on that property and the fact that we were able to move [00:44:10] that whole concept forward the central project something that we've worked for [00:44:16] many years on to be able to try to realize and just the overall downtown [00:44:23] development our business and center program has been very beneficial to [00:44:29] community in a variety of ways obviously 5800 Main Street which I spend a lot of [00:44:34] money on a regular basis but I'm getting much healthier by being there you know [00:44:41] some of the facade improvement programs again the before and after 5800 Main [00:44:46] Street so the plan kind of highlights these different components here bear [00:44:56] with me like the opportunity zones designation [00:45:00] we get quite a number of calls as to where they are in the city and, you know, [00:45:05] the opportunity to buy a strip mall in these locations would be very [00:45:11] beneficial from a tax standpoint. So it kind of reports on the Main [00:45:16] Street evolution and talks about the CRA plan update that we've kind of moved [00:45:22] forward with and then the presentation of the financial statements both on the [00:45:26] balance sheet and on the income statement and then notes to the plan. So [00:45:31] this is required to be posted on the city website and we'll be sending these [00:45:35] to the various taxing authorities as required. [00:45:42] Open this up for public comment. Seeing no one coming forward, bring it back to [00:45:49] the board. The question of the Opportunity Zone. Mr. Chairman, you [00:45:55] mentioned that there were a lot of people asking where they were. Is it [00:46:00] possible for us to have a map? Reading this, I'm not sure. Could you identify [00:46:05] where they are? Yeah, I can identify them. There's actually an interactive map that [00:46:09] you can find online. However, basically it's the ACA site and the Opportunity [00:46:15] Zone starts on the east side of Grand on the ACA site. It follows all the way [00:46:21] up and to Louisiana on the east side of Grand and pretty much wraps around the [00:46:27] various school districts. I really think that that's what the state strategy was [00:46:30] to address those issues. And so it kind of comes around the southern and the [00:46:36] eastern side of the city and goes all the way up to Massachusetts. So it's from [00:46:40] Congress out to Rowan, north and south, and then along the south side of [00:46:45] Louisiana and as far south as the ACA site. In addition, though, to providing the [00:46:51] verbal description, we will follow up with a map and the city manager's report [00:46:55] this week. It would be wonderful. I probably wouldn't hurt for it to be on [00:46:58] the city website so that people could see it. We need to adopt the Community

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5. 5

   ↳You arrived here from a search for “Annexation needs assessment and finding of necessity” — transcript expanded below

   Professional Services Agreement with Kimley-Horn and Associates, Inc.

   approved

   The CRA Board approved Amendment No. 1 to the professional services agreement with Kimley-Horn and Associates for $32,000 for additional work on the Community Redevelopment Plan update, annexation-related CRA services, a needs assessment, finding of necessity, and financial forecasting for future annexation.

   • motion:Move to adopt the Community Redevelopment Agency's annual report. (passed)
   • motion:Approve Amendment No. 1 to the professional services agreement with Kimley-Horn and Associates for $32,000 in additional CRA-related work. (passed)
   • motion:Motion to adjourn the CRA meeting. (passed)

   🏢Kimley-Horn and Associates, Inc.👤Mayor#Amendment No. 1#Annexation needs assessment and finding of necessity#CRA Annual Report#Community Redevelopment Plan update

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   [00:47:03] Redevelopment Agency's annual report, so I would entertain a motion to that effect. [00:47:07] Move to adopt the report. Second. [00:47:09] We have a motion and a second to the maker. [00:47:11] Second. [00:47:13] Nothing more. [00:47:15] In that case, all those in favor, please signify by saying aye. [00:47:18] Aye. [00:47:19] Opposed, like sign. Motion passes. Next, professional services agreement with [00:47:23] Kimberly Horn and Associates. Yes, sir, Mr. Mayor. The request before you this [00:47:29] evening is to consider an amendment to the agreement with Kimberly Horn and [00:47:34] Associates for some additional work that they did in preparation of the [00:47:42] Community Redevelopment Plan update before you, as well as additional CRA [00:47:48] services that they have provided in respect to annexation, and additionally [00:47:54] what they will provide in terms of a needs assessment and finding of necessity [00:48:00] as well as financial forecasting for future annexation. The fee being [00:48:05] requested for the service is $32,000 and the staff has reviewed the proposal and [00:48:15] finds that the fee being requested is consistent with industry standards and [00:48:22] that it is fair and appropriate. We are therefore recommending that you [00:48:26] consider amendment number one with Kimberly Horn and Associates for [00:48:32] additional work. Thank you. Open it up for public comment. Seeing no one come [00:48:38] forward, bring it back to the board. Move approval. Second. We have a motion and a [00:48:43] second to the maker. I think somebody that's been studying our city for two [00:48:48] years probably about the best one we could get to keep working with us. [00:48:51] Probably. To the second. No, I'm good. Thank you. Directors? Nothing. In that case, all those in [00:48:59] favor, please signify by saying aye. Aye. Opposed, like sign. At this point I will [00:49:04] entertain a motion to adjourn. Move to adjourn. Thank you. We will reconvene as [00:49:10] the City Council in about 12 minutes.

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6. 6Adjournment