On the agenda

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

   Approval of January 7, 2020 CRA Meeting Minutes

   approved

   The CRA Board approved the minutes from the January 7, 2020 CRA meeting.

   • motion:Approval of the January 7, 2020 CRA meeting minutes. (passed)

   #January 7, 2020 CRA Meeting Minutes

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   [00:00:20] of the January 7th CRA meeting minutes. Move for approval. [00:00:25] Second. Any discussion? Hearing none, all those in favor, please [00:00:28] signify by saying aye. 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.

3. 3

   ↳You arrived here from a search for “Kenan Development Company” — transcript expanded below

   Presentation of Phase I of the Gateway Area Redevelopment Project

   discussed

   CRA Executive Director Ms. Manns presented Phase I of the Gateway Area Redevelopment Project, a catalyst project at U.S. 19 and Main Street involving demolition of the former Walgreens, Media General building, and former downtown gyro/seafood site to construct a 41,156 sq ft, two-story building to house Keiser University (up to 1,000 students, 100 staff). The $12 million project includes land assemblage by the CRA (purchasing Walgreens for $1.75M and Rivergate/AG property for $2.5M, then selling to Kenan Development for $4.25M) and recommended economic development incentives of $2.1M (18% of project cost). Longer-term phases contemplate a $5M flagship hotel and a stacked parking deck.

   • direction:Ms. Manns previewed three action items for later in the agenda: authorize purchase agreement with AG Development Group/River Great Park LLC ($2.5M), authorize purchase/sale agreement with Kenan Development Group ($4.25M), and authorize an option agreement with Kenan for potential stacked parking acquisition. (none)

   📍5800 Main Street📍U.S. 19 and Main Street🏢AG Development Company🏢Keiser University🏢Kenan Development Company🏢Kenan Development Group🏢Main Street Landings🏢Media General🏢River Great Park LLC🏢Rivergate🏢Urbanomics🏢Walgreens🏢Wright's Natural Food Market🏢downtown gyro and seafood restaurant👤Ken Kravling👤Mario Iazzoni👤Ms. Manns👤Tim#Community Redevelopment Agency (CRA)#Economic development incentives ($2,100,000 / 18% of project cost)#Gateway Area Redevelopment Project#Land assemblage of 4.61 acres#Office of Demographic Research#Option agreement for 1.48-acre parking parcel and 1.26-acre hotel parcel#Phase I#Tax Increment Financing (TIF)

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   [00:00:34] Ms. Manns, presentation phase one of the Gateway Area Redevelopment Project. [00:00:38] Thank you very much. It's my pleasure to present to you this evening what we're referring to [00:00:47] as phase one of the Gateway Area Redevelopment Project. For some time now, there has been [00:00:57] discussion about the prominence of this particular assemblage of property located in the city, [00:01:07] as you can see, on U.S. 19 and bounded on the south side of Main Street, containing [00:01:15] the former Walgreens store. That retail facility closed almost two years ago. The former Media [00:01:25] General building, which has been unoccupied in excess of seven years, and the site of [00:01:33] the former downtown seafood and gyro restaurant, which has since been razed before the time [00:01:43] of the aerial that I've presented to you. This property is important for various reasons. [00:01:53] Its prominence on U.S. Highway 19 is our principal commercial corridor in the city, [00:02:00] and additionally, as a result of the fact that Main Street does serve as our gateway [00:02:06] to the downtown district. In the kindest of descriptions, I think it's appropriate to [00:02:14] suggest that the buildings are an eyesore to the city. They reflect poorly on the image [00:02:21] of the city, and they do nothing to advance positive economic development in the area. [00:02:29] The property, though, does provide a great opportunity in that the three properties are [00:02:36] currently available, and I have talked to you a number of times over the years about [00:02:48] different proposals that have been advanced for either a part of the project, parcel, [00:02:56] or all of it, and you have advised me that none of them, or none of the proposals that [00:03:06] have been advanced, served as a catalyst project, and that this property should, and is of critical [00:03:17] consequence to the city, be a catalyst project for development. So what is being proposed [00:03:27] in phase one of the project? There are actually some short-term project goals as well as some [00:03:35] longer-term project goals. The current project scope involves the demolition of the two remaining [00:03:43] structures on the property, the construction of a 41,156-square-foot, two-story building, [00:03:53] which would house Kaiser University as a tenant. The building is projected to house up to a [00:04:01] thousand students and 100 staff positions. That number of students more than doubles [00:04:13] what their current location in the city provides for. They will be offering day and evening [00:04:21] classes at the campus. The total project cost is $12 million. The construction, if this [00:04:30] project is approved by you, will commence in summer of 2020 and will conclude in April of 2021. [00:04:40] The second part, and the longer-term project goals, include the establishment of a flagship [00:04:53] hotel valued at $5 million on a portion of the property. It also calls for the construction [00:05:01] of a stacked parking deck to provide spaces for not only some of the school needs, but [00:05:09] also hotel and public use as well. Go ahead and move on to the next slide, please. I thought [00:05:20] it would be important to tell you a little bit about Kaiser University. I want to report [00:05:28] to you that they are a private, not-for-profit university. They have over 3,800 employees, [00:05:37] serve 20,000 students, and they have 21 campuses in the state. They offer degrees in a wide [00:05:46] range of areas. They have a comprehensive graduate program, and they do have an online [00:05:53] division. They also have international campuses in China and Nicaragua. They have the distinction [00:06:01] of having been named in the 2019-20 edition of Money Magazine as number 8 based on factors [00:06:12] such as affordability, quality of education, and employment earning outcomes in a listing [00:06:18] of colleges in the state. As I indicated, they do provide a wide range of programming, [00:06:24] but they have sustained rankings of second in the state for degrees in nursing, associate [00:06:30] degrees in computer and information services, and in criminal justice and corrections. I [00:06:39] thought that you might ask me about their current location where they are a tenant. [00:06:47] And there is a future use in mind, so a move to a new and larger facility won't create [00:06:57] a vacancy in the downtown area. The owner of the property has in mind expanding the [00:07:06] footprint of the property, and they will be constructing a transitional care facility [00:07:13] for senior citizens in place of Kaiser as a current tenant. In respect to Kaiser, it [00:07:24] became known to us some time ago that they were looking for a new location. At that time, [00:07:33] I met with Mario Iazzoni, who's in attendance this evening, and I approached Kaiser and [00:07:40] also proposed their consideration of several sites in the city, principally, though, the [00:07:48] site that we're talking about tonight. And for various reasons, the site didn't work [00:07:56] for them. There were a lot of moving parts and a lot of different deals in the works, [00:08:03] and they determined there were just too many moving parts. They needed to solidify land [00:08:09] control in a relatively short time frame, and so they had caused them to consider some [00:08:18] alternate locations. In respect to that, you know, Mario and I, we just don't give [00:08:29] up easy, so we continue to pursue a relationship with Kaiser University and Kenan Development [00:08:40] Company, their representative on construction. And at one point, and I believe it's as a [00:08:49] result of those ongoing relationships, they were willing to engage us in further discussion, [00:08:54] which is what brings us to today. And I want to talk to you first about what the economic [00:09:02] benefits are to the city. Clearly, by the slides being presented, we can suggest that [00:09:09] there is an elimination of slum and blight, because those are the conditions that are [00:09:14] perpetuated on that prominent corner in the city. There are other economic benefits to [00:09:23] the city, though, and they are improved frontage on U.S. Highway 19, as previously stated, [00:09:31] and gateway to our downtown district. The project represents a positive and substantial [00:09:38] economic stimulus in the CRA district, and additionally, an increase of property value [00:09:45] in the CRA district. Lastly, but very importantly, it also promotes job creation, both direct [00:09:53] and indirect. There are, though, in addition to that, other benefits to the CRA and the [00:10:01] city. The student body and staff are potential customers to our existing business community. [00:10:10] The presence of Kaiser University in the city ensures accessibility of quality academic [00:10:17] programs, and lastly, it provides local area residents with workforce training so that [00:10:25] they're better prepared to compete in the job market. So that brings us back to what [00:10:34] is a community redevelopment agency and what is our role in the project. And quite simply [00:10:43] put, a community redevelopment agency is an economic tool. That tool is based on state [00:10:52] statutes and it provides local units of government with authority to establish a redevelopment [00:11:00] district and to determine a plan of attack as it relates to urban decay. As you know [00:11:07] from your experience on the CRA, we operate on a budget that is generated through an increase [00:11:13] in property values, and the budget each year is used to fund projects and initiatives that [00:11:21] mobilize further reinvestment in the district. So what are economic incentives? And there [00:11:34] are a host of types of them, but CRAs are designated generally as physical districts [00:11:43] which are established for purposes of carrying out redevelopment activities and eliminating [00:11:51] slums and blight, improving the economic health of an area, and encouraging public and private [00:11:59] investments in the district. One of the ways that local units of government fund economic [00:12:08] development incentives is through a CRA, and economic development incentives are offered [00:12:14] to companies as an inducement for either retaining a location in the city or for relocating into [00:12:23] the city or expanding in the city. Those are three variables that are allowed for in the [00:12:29] Act. The types of economic development incentives that are commonly used are tax-based. They're [00:12:41] tax rebates. There are subsidies, there are financial, which is typically cash, there [00:12:47] are grants and loans, there are below market rate leases or deeds for real property, and [00:12:54] they're also fee-based. Those are the most common tools that are used in the state of [00:13:00] Florida. Typically an economic development incentive package represents two or more of [00:13:07] the economic development types based on the need of the property user. The next question [00:13:19] I thought that you would have of me is, how do you determine what an appropriate amount [00:13:26] is of economic development incentives? And in general, the amount of the incentive is [00:13:33] typically a percentage of the amount of the total investment, and it's additionally reflective [00:13:40] of the answers to the following factors. Will the project enhance a distressed area? What [00:13:48] is the expected return on investment? Will the project enhance the local economy? Will [00:13:55] the project provide opportunities of increased income to residents? And what other benefits [00:14:03] does the project offer to residents and members of the business community? In the case of [00:14:07] this project, I think it is fair to suggest that the amount of economic incentives should [00:14:18] be in a range that is fair to the CRA, to our future ability to provide incentives to [00:14:29] others, but also it needs to consider the amount of investment that the project is committed [00:14:41] to. In this case, the project is the largest investment on the part of a private property [00:14:51] owner or developer in the city for over two decades. We have not seen a project of this [00:14:59] magnitude. [00:15:00] And in fact, the only projects in this scale that have been implemented were done so on [00:15:09] the part of a public agency. For instance, the city, the hospital, and the tax collector [00:15:22] are the three projects that occurred in the last two decades. So in moving on, the Office [00:15:32] of Demographic Research, which is the branch of the Florida government that talks to CRAs [00:15:40] and cities about the tools being offered, suggests that there are incentives in the [00:15:48] 10% to 50% range as a whole. The concentration, though, is in the 20% to 25% range of total [00:15:57] project costs. There was one project last year that actually hit 60.7%, but it was comprised [00:16:08] largely of impact and permit fees and not cash. So in moving on, what specific role [00:16:24] does the city of New Port Richey CRA play in the proposed project? And that answer is twofold. [00:16:32] It relates to land assemblage, and it also relates to the amount of economic development [00:16:38] incentives. The current project scope calls for a net land assembly of 4.61 acres. The [00:16:51] land involves the Walgreens piece, which you have offered me the authority to purchase [00:17:02] at the purchase price of $1,750,000. Tonight I will be, as part of our agenda, requesting [00:17:13] that you provide the authority to me as your Executive Director to purchase property from [00:17:21] Rivergate, A.G. Gowen's development company, in the amount of $2,500,000. And that represents [00:17:33] property that currently, I should say, used to have the former year-owned seafood shop [00:17:40] on it and also Media General. The property, though, would be transferred to Kenan Development [00:17:51] Company for $4,250,000. So in short, what I'm telling you is the amount of the purchase [00:18:01] price equals the amount of the sales price for the property, with the exception only [00:18:10] of 0.9 acres of property, which is being reserved along the northern property line and held [00:18:20] by the city so that an entry feature can be developed on the property into the city's [00:18:30] parking. It is being located in the city and transitioning into our downtown area. [00:18:39] The process to achieve all of that is that we complete the closing on the Walgreens property, [00:18:51] which is 1.48 acres and, as previously indicated, was purchased for $1,750,000, enter into [00:19:04] a purchase agreement with A.G. Development Company for $2,500,000, and then to enter [00:19:14] into a purchase agreement with Kenan Development Group for $4,250,000 for the Media General, [00:19:25] the downtown year-owned seafood shop, and Walgreens. The next step would be to close [00:19:33] on the Media General and downtown year-owned seafood restaurant, and then to close on the [00:19:40] sale of Walgreens. That would complete all of the land agreements that need to be executed, [00:19:49] and our city attorney has been working very hard to make sure that those closings occur [00:19:57] simultaneously and with the exception of the Walgreens piece, which you have already authorized [00:20:09] us to purchase, we could hold that potentially up to 60 days based on the current layout. [00:20:19] So what are the economic development incentives that I'm recommending to you to support this [00:20:25] project? They aggregate to the amount of $2,100,000. That represents 18% of the total [00:20:38] project's costs. We are recommending that those be provided in the form of financial [00:20:47] and fee-based incentives. The amount is to be dispersed completely prior to the issuance [00:20:56] of a Certificate of Occupancy on the Kaiser University building. One of the questions [00:21:03] that I thought you might have of me is, what did we do in the case of Main Street Landings? [00:21:11] Because that too was a project of about equal scale. And in that case, the incentive provided [00:21:21] was in the amount of 23%. We also provided significant incentives as it relates to 5800 [00:21:34] Main Street, which now houses Wright's Natural Food Market. And the incentives provided to [00:21:46] that project aggregate 21%. So it was over $1,400,000 of benefits. [00:22:02] The last slide that I want to provide to you, or maybe the last slide about the last slide [00:22:11] that I want to present to you, talks about what we need to do as it relates to the potential [00:22:18] future elements of the project. And we will be asking you tonight to enter into an option [00:22:27] agreement with Kenan Development Group. And the option agreement will call for them to [00:22:34] donate 1.48 acres of property to the CRA. That is property that they would be developing [00:22:48] for surface parking. The option specifically provides the CRA with an opportunity to determine [00:23:00] in terms of density for the overall project, if it may make sense to establish a stacked [00:23:10] parking facility rather than providing surface parking. If the CRA determines at a future [00:23:19] time that we would like to construct a parking structure, Kenan Development Company is asking [00:23:26] for the CRA to construct the deck at their expense, and additionally to provide an appropriation [00:23:36] of spaces for their use. The last part of the agreement, and Tim help me out if I don't [00:23:47] represent this appropriately, is we're talking about Kenan Development Group potentially [00:23:54] constructing a building on 1.26 acres of property intended to house a flagship hotel. And if [00:24:06] they determine that they aren't going to do it, then we can ask them the question when [00:24:13] they have an opportunity to speak. But as I understand it from them, then they would [00:24:17] sell the property for another purpose. So the next slide outlines for you what is presented [00:24:33] later on in your agenda under six, the three action items that we're asking your consideration [00:24:42] of this evening. And the first is to authorize entering into a purchase and sale agreement [00:24:49] with AG Development Group and River Great Park LLC in the amount of $2,500,000 in respect [00:24:59] to the two properties that they control on U.S. Highway 19 just south of Main Street. [00:25:07] The next agenda item would be to authorize the Executive Director to enter into a purchase [00:25:15] and sale agreement with Kenan Development Group in the amount of $4,250,000 in respect [00:25:24] to the purchase of all three properties. Lastly, we will ask you to consider authorizing the [00:25:33] Executive Director to enter into an option agreement for the potential acquisition of [00:25:38] property from Kenan Development Group related to the establishment of the stacked parking [00:25:44] facility, which it will be at your discretion whether or not that option is exercised. [00:25:54] And I would like to thank you very much for your careful consideration and deliberation [00:25:59] of this very important matter. And with that being said, Mr. Mayor, if you could call for [00:26:09] the next agenda item, I would like to ask Ken Kravling of Urbanomics to present for [00:26:19] us the taxable value and the tax incentive finance authority projections that have been [00:26:27] prepared for the project through a 20-year period of time. Thank you.

   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

   Presentation of the Taxable Value and Tax Incentive Finance Authority Projections

   discussed

   Ken Kravling of Urbanomics, Inc. presented projections of taxable value and tax increment revenue for the proposed Kaiser School/office building (Phase 1) and hotel (Phase 2) development. Phase 1 alone is projected to raise the parcel's taxable value from about $2 million to $5 million and generate approximately $730,000 in TIF revenue over 10 years ($1.7M over 20 years); with the 80-room hotel added, total revenue projections rise to $1.6M over 10 years and $3.8M over 20 years.

   📍River Street📍former Walgreens parcel🏢Hampton Inn🏢Holiday Inn Express🏢Kaiser School🏢Kimley-Horn🏢Tru by Hilton🏢Urbanomics, Inc.🏢Walgreens👤Allman👤Ken Kravling👤Ms. Manns#CRA Plan#Main Street Landing project#Phase 1 - school/office building#Phase 2 - 80-room hotel#Tax Increment Financing (TIF)#US 19 corridor

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   [00:26:31] Very good. So this will have the next item as the presentation of the taxable value and [00:26:35] tax incentive finance authority projections. Go ahead. [00:26:39] Good evening, CRA Board members, City staff, Ken Kravling, Urbanomics, Inc., Economic Consultants. [00:26:48] I was pleased to work with you in recent years on the update of the CRA plan as part [00:26:57] of the Kimley-Horne team, so I recognize some faces from the past. Nice to see you again. [00:27:04] I guess we, is there a slide? [00:27:08] We did not prepare a slide for your presentation, but we did present to the Council as part [00:27:15] of their packet, the tables that we put together. [00:27:20] Sorry, I thought maybe that was part of the PowerPoint presentation. All right. We were [00:27:25] asked to try to estimate the potential tax revenue impact of the project, including Phase [00:27:34] 1, which is the school office building. I call it a school and an office building because [00:27:41] in outward appearance, it's an office building, although it functions as a school, it's really [00:27:48] both. And this Phase 2 is, of course, the hotel. [00:27:55] We did an analysis of the potential tax revenues to be generated by Phase 1 as well as the [00:28:02] overall project. And just to, I'll summarize a few key points. The Phase 1 of the development [00:28:14] consists of the Walgreens, the former Walgreens parcel, which is an acre and a half, plus [00:28:19] another half acre of property that would be part of the school office development and [00:28:26] surface parking area. That has an existing 2020 taxable value of about $2 million, a [00:28:34] shade under $2 million. As soon as the school office building is completed and it's on the [00:28:43] tax roll, there's a potential there to increase in Year 1, which would be 2021 or whenever [00:28:53] it appears on the tax roll, the taxable value would increase to about $5 million. And that's [00:29:01] based upon a couple of assumptions. The assumptions relative to land value and building value. [00:29:10] And in round numbers, it all translates to about $116 a square foot. If you add land [00:29:15] and building together, the taxable value is we estimate to be $116 a square foot. Now, [00:29:26] how does that relate to the rest of the world in New Port Richey? You might be interested [00:29:32] to know that typically your office buildings or what could be considered office buildings [00:29:41] are typically in the $20 to $50 a square foot range taxable value because the inventory [00:29:49] is old. It's 20 to 60 years old. So, therefore, you have low taxable values. And this would [00:29:57] be obviously quite a new facility. [00:30:00] and the taxable value you could expect to increase considerably. [00:30:05] We looked at comparable properties in the Wesley Chapel, [00:30:10] office properties in the Wesley Chapel area, Trinity, and so on elsewhere in the [00:30:15] county, [00:30:16] and are comfortable with the notion that it could increase [00:30:21] very quickly to about a hundred and sixteen dollars a square foot, [00:30:25] including land and building, and [00:30:29] some are higher, some are lower of the newer facilities in the county, but we [00:30:33] feel comfortable that that's [00:30:35] the case, and we hope it is the case, because as you know, [00:30:40] values of property, both land and improvements, have been so [00:30:46] held down for years in New Port Richey [00:30:50] because the inventory of [00:30:54] commercial buildings is old, [00:30:57] and we're hoping and expecting that the, [00:31:01] this will be a good shot in the arm for commercial construction in the [00:31:05] community, and will begin to elevate those property values. [00:31:10] How does that translate, that taxable value, [00:31:13] translate into revenues, both city and county [00:31:17] revenues that come to the CRA through the tax increment fund mechanism? [00:31:23] And we estimate that over a ten-year period, [00:31:27] this phase one development will generate about seven hundred and thirty [00:31:31] thousand dollars of tax revenue. [00:31:35] Right now, the Walgreens parcel [00:31:38] itself is about, probably generates something in [00:31:43] in the order of twenty thousand a year, something like that. [00:31:47] I don't have the figures directly in front of me, but [00:31:51] that will give you an idea of the potential increase [00:31:54] in revenue potential. [00:31:57] Over a 20-year period, the revenue potential, [00:32:01] and these are based on fairly conservative valuation [00:32:04] appreciation assumptions, can increase to about 1.7 million [00:32:09] over a 20-year period. Now if we add in phase two, which is the hotel, [00:32:15] and here we're assuming an 80 room [00:32:19] good quality hotel, Hampton Inn, [00:32:22] Holiday Inn Express, True by Hilton, that [00:32:25] level of quality and modernness [00:32:29] that the hotel will increase the [00:32:33] revenue potential for the whole development [00:32:43] in ten years to [00:32:46] about 1.6 million total, and in [00:32:50] in 20 years to 3.8 million. [00:32:53] So you can see the potential tax revenue benefit of this new development [00:32:58] is going to be quite significant, and those [00:33:01] that taxable value increase in revenue increases provides the basis for the [00:33:06] incentives that Ms. Manns was [00:33:08] discussing with you, or part of the basis for those [00:33:13] incentives. [00:33:14] I'll be happy to answer any questions you might have. [00:33:18] Questions anyone? Mr. Allman? [00:33:23] Your comments have all been based on the tax increment and [00:33:27] its effect on the CRA, and we are the CRA board, but [00:33:30] as to my colleagues who are very similar looking than we are [00:33:34] on the city's general fund, our city council, [00:33:38] what would you expect [00:33:41] to occur with the doubling of the size of the facility in terms of [00:33:46] economic impact to the existing businesses in town? [00:33:49] Restaurants, sales tax, spending, [00:33:53] communication taxes, those sorts of things. [00:33:57] That's a benefit that you haven't mentioned. I just wonder, do you have any [00:34:00] comments about that? [00:34:02] Happy to discuss that with you. Of course, [00:34:05] this development, as well as the Main Street Landing project, [00:34:10] is a big shot in the arm for the downtown area [00:34:14] and the 19 corridor. [00:34:17] What impacts it will have on adjacent properties and so on is [00:34:22] clearly bound to have some impacts, [00:34:26] to significant impacts. It remains to be seen what those are, [00:34:31] but I suspect that it will result in some turnover of property, [00:34:36] some interest on the part of property owners and developers to [00:34:41] take an interest in those properties that are in the adjacent area [00:34:45] and to redevelop them based upon [00:34:49] the improved image, [00:34:53] general image and opportunities in the area. [00:34:57] The school building itself, the office building itself, [00:35:01] my understanding is that the student population may increase. [00:35:06] I'm not sure the level of increase. [00:35:09] I think the representatives are here and [00:35:13] perhaps can talk about that more, but more population [00:35:17] obviously generates more spending [00:35:20] and more activity in the area. [00:35:23] The proximity of the potential Kaiser [00:35:26] School to the downtown area, [00:35:31] you're a little further removed now being down at the end of [00:35:35] River Street, but here you're thrust almost right in the middle of [00:35:39] the Main Street area, so that's going to be a big help. [00:35:42] So, I'm speaking qualitatively, but clearly there are going to be some [00:35:47] beneficial impacts to [00:35:48] all the adjacent properties, and I think that will be recognized [00:35:53] in the increased taxable value of those [00:35:56] properties that are adjacent and in the [00:35:59] vicinity. Any other questions? [00:36:03] Thank you very much.

   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.

5. 5

   Introduction of Keenan Development Group, Inc.

   The Keenan Development Group was formally introduced to the CRA Board, with partners Bill Keenan and Dale Chenoweth present, accompanied by Jim Waldron, general counsel to Keiser University, and Chuck Gibbons from Keiser University to answer questions.

   🏢Keenan Development Group, Inc.🏢Keiser University👤Bill Keenan👤Chuck Gibbons👤Dale Chenoweth👤Jim Waldron

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   [00:36:07] I believe the next is the introduction of the Keenan [00:36:11] Development Group. It's my pleasure to introduce [00:36:14] the partners in Keenan Development Company, Mr. Bill Keenan [00:36:20] and Mr. Dale Chenoweth. [00:36:23] They have brought with them Jim Waldron, [00:36:26] who serves as general counsel [00:36:30] to Kaiser University, and we also have in attendance [00:36:34] Mr. Chuck Gibbons from Kaiser University [00:36:38] in the event that you should have questions about the university [00:36:41] itself, but I wanted to formally introduce them to you [00:36:46] and allow them to present themselves and respond to any questions that you might [00:36:51] have. [00:36:52] Very good. At this point,

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6. 6

   Gateway Area Redevelopment Project Phase I

   discussed

   The CRA Board discussed Phase I of the Gateway Area Redevelopment Project, involving the city's purchase of the Walgreens property and Goins/Rivergate parcels (~$4,250,000 total) for conveyance to Keenan Development Group, with Kaiser University planned as an anchor educational tenant. Public comment from former Economic Development Director Mario Iezzoni strongly supported the project's long-term economic and educational benefits, while resident John Cain raised concerns about CRA advertising requirements, financial risk, and transparency. The item involved discussion of a simultaneous closing structure and broader Main Street streetscaping implications.

   • direction:Council/CRA direction to proceed with the Gateway redevelopment acquisitions and consider dusting off Main Street streetscaping plans from River Road to US 19. (none)

   📍5511 West Shore Drive📍6041 Florida Avenue📍Goins/Rivergate parcels📍Highway 19 corridor / US 19📍Main Street from River Road to US 19📍Walgreens property🏢Bank of America🏢Encore Development Company🏢Kaiser University🏢Keenan Development Group🏢Main Street Landing🏢Sips🏢USF🏢Walgreens👤Alan Goins👤Bill Keenan👤Dale👤John Cain👤Lisa👤Lisa Fierce👤Mario Iezzoni👤Mr. Belkina👤Mr. Biles👤Mr. Davis👤Mr. Rudd👤Mr. Starkey👤Ms. Mance#$4,250,000 total acquisition price#Baptist Church property acquisition#CRA extension (30 years)#Gateway Area Redevelopment Project Phase I#Harbors Redevelopment Plan#Harvest Plan#simultaneous closing structure

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   [00:36:55] I know we've got some interest from the public on this. [00:36:59] I would like to ask Mario if you could [00:37:04] give us your perspective on this thing. [00:37:16] Mario Zoni, 5511 West Shore Drive, [00:37:20] former Economic Development Director of the City of New Port Richey, [00:37:23] now entrepreneur in the private sector. [00:37:27] Gosh, my second day here when I was hired by the City of New Port Richey to deal with as many [00:37:32] challenges, [00:37:33] my thoughts were, [00:37:37] how do you deal with the long-term economic benefit [00:37:41] that I could bring to the city as a goal and objective? [00:37:44] I think clearly most of us know, having gone to educational institutions, [00:37:48] that educational institutions bring rather significant value to the long-term [00:37:53] sustainability of communities. [00:37:54] We have many examples throughout the entire country where you have an academic [00:38:00] institution [00:38:01] and all the knowledge and learning that comes from that, [00:38:04] that communities benefit in a variety of ways. I am an example of that. [00:38:09] I was trying to buy a whitewater rafting company [00:38:13] and I wanted to be an employee. I took an accounting 101 class [00:38:18] at a local community college. I realized that [00:38:21] it answered all the questions that the banks kept throwing me out the door on [00:38:25] to be able to buy this company. [00:38:26] I've taken that to the level now where I am a licensed CPA in two states [00:38:33] and a certified valuation analyst, [00:38:35] an area that I take great pride and knowledge on. [00:38:38] So I think education is what I call [00:38:42] intellectual infrastructure for the city. [00:38:45] A lot of time sitting there as economic development director, we see a lot of [00:38:49] capital investment as advocated by the group. [00:38:51] As the city manager says, [00:38:54] public investment leads to more private investment. [00:39:00] I generally believe that [00:39:03] the location of Kaiser on the site will be extremely beneficial [00:39:07] to the community. In regard to the Walgreen's site, [00:39:11] some of the information I gathered over the years is the fact that [00:39:14] people don't realize that in 2001, when it was put on the tax roll as a CYCRA, [00:39:20] it was put on its maximum value of $4.2 million. [00:39:23] Appreciation of the property and the value of the property [00:39:26] has eroded to $1.1 million. [00:39:30] Kent was correct in the $20,000 there. [00:39:34] Media property has not generated property taxes since 1986 until it was purchased by [00:39:39] Alan Goins [00:39:41] because it was a non-profit entity. If you look at the tax records, you will see [00:39:44] that there was no revenue coming to the site. [00:39:47] As the city manager properly said, slum of light conditions have [00:39:51] occurred there. [00:39:53] Also, working with the city manager, [00:39:56] we had focused specifically on Labrador quite extensively to get the county to [00:40:01] focus on the plan that they won the award from, which was called the [00:40:05] Harvest Plan. [00:40:07] The Harvest Plan said that the Gateway District would be, [00:40:10] and should be, the first site of focus for [00:40:13] economic development to revitalize the Highway 19 corridor. [00:40:17] Every project that I think I've done for the city of New Port Richey, [00:40:23] in terms of the mathematical calculations, were always designed to be a benefit [00:40:29] of who we all are as public servants, that they get their money back. [00:40:32] I think a lot of times we look at incentives as a way of money going out [00:40:36] the door and never returning, [00:40:38] or returning in somehow what we explain in terms of an intangible way, [00:40:42] which really does occur. However, the Main Street landings, [00:40:46] my taxable value that I used was $8 million. I believe that is insured for [00:40:51] $15 million. [00:40:52] We get that money back much faster. That money gets returned to the [00:40:57] taxpayers of the city. [00:40:59] The dynamic with the Central, that was a [00:41:02] little bit less aggressive, declining balance method, [00:41:05] which I worked with the city manager on and negotiated [00:41:09] quite effectively. There was a real challenge in the property, and again, you [00:41:13] simply were caught up in the 05 collapse of the economy, where we bailed out the [00:41:17] auto industry, [00:41:18] and we bailed out the banking industry. And there was New Port Richey, [00:41:23] dealing with the CRA, was very successful, making very pragmatic investment [00:41:27] decisions. And when you read [00:41:29] the notes by the Baptist Church property, [00:41:33] you realize that they were just dealing with the times, and the city paid [00:41:36] $2.6 million for that piece. [00:41:39] The economy blew up, and there accrued an interest of $1.3 million, and the cost of [00:41:43] that land [00:41:44] was $3.9 million to the residents of the city. [00:41:48] The reason why we pushed aggressively for the density rights on that, [00:41:52] and sadly to say, and with much respect for Lisa Fierce, [00:41:57] she carried that mantra on her back, [00:42:00] and advocated for those 84 units, which made the market for the investment [00:42:05] capital to do that. [00:42:07] And I do the math, the present value on that, [00:42:11] in terms of current dollars, is $5.4 million, so the city does get made whole [00:42:16] on that, in addition to the additional economic benefits that that does bring [00:42:20] to the city. [00:42:21] So, you know, when you look at incentives, and you look at trying to [00:42:27] bring, and really I work with these guys, [00:42:29] Bill Keenan and Dale, and I'll tell you, [00:42:33] you know, it's about building a really strong entrepreneurial community within [00:42:37] the town. We have [00:42:38] Lisa from Sips, who generates 134 [00:42:41] golf cart community through her social media. [00:42:45] The world's changing very rapidly, and where we struggle with our old concepts [00:42:49] of marketing, [00:42:50] our entrepreneurs deal, and drive, and leverage [00:42:54] new concepts that we couldn't even buy as a city, in terms of the price. [00:42:58] So, and I can't just say enough, I was on the, [00:43:03] I don't know if I'm still on, but I was on the advisory for [00:43:07] Kaiser at the time, was invited to them, [00:43:10] have been working with non-profits, they like to have people from the community, and that's [00:43:13] when I heard about [00:43:14] their intention to construct this building. [00:43:19] And I just can't say enough, in terms of the conversations that we have with [00:43:23] Keenan Development, [00:43:24] for the first year and a half, they're excellent conversations, [00:43:28] they're very straightforward, and more than willing to [00:43:32] work with us, and it's unfortunate [00:43:36] that the dynamics evolve, because we are in a competitive society, and we have to [00:43:39] deal with those competitive issues often. [00:43:42] I ran the numbers, Ken, [00:43:46] okay, and I actually, we worked very closely on the CRA numbers, and we worked [00:43:50] closely on extending the CRA [00:43:51] for 30 years, and I think you used my numbers in the CRA, [00:43:55] in terms of extending your project, if I'm not mistaken, and I've really enjoyed kind of [00:43:59] working with them. [00:44:00] And quite frankly, I think the incentive, however it's fashioned, or however it's structured, [00:44:05] is of benefit to the citizens of New Port Richey, [00:44:09] in the fact that they're going to be recapturing tax dollars, [00:44:14] because we not only pull in [00:44:17] to the CRA payments made by the citizens, but we do pull in a county portion to that. [00:44:23] And when I begin to look at the numbers from a quantitative standpoint, [00:44:27] I hate to say from a recreational standpoint, because this is what I used to do, [00:44:32] I am very comfortable with the potential status that might occur there. [00:44:36] I think it's absolutely very important that we bring an [00:44:40] educational institution to this town, [00:44:44] because there are individuals here, [00:44:47] in the schools that we all deal with on a daily basis, that have [00:44:50] absolutely incredible talent. And when they get out in the workplace, and they're [00:44:56] standing up to the signs, trying to push an oil change business, [00:44:59] that's probably... [00:45:00] be not what their ultimate motive is, and they can go [00:45:03] to a very affordable school like Kaiser College, [00:45:05] who by the way is SACS accredited, and if USF showed [00:45:10] up here or UF showed up here to plant their flag [00:45:13] on that corner, their accreditation is [00:45:16] at that same level. [00:45:18] However, that would be tax exempt to them [00:45:21] in this dynamic, if I'm not mistaken, and the dynamic [00:45:25] as Kaiser's at, they were for profit but went to non-profit. [00:45:29] However, Kaiser leases the land that the universities are on. [00:45:34] Additionally, and just in terms of being a student [00:45:38] of the market conditions and the demand up here, [00:45:41] it's kind of interesting because I think [00:45:43] that it's a greater opportunity for Kaiser University [00:45:47] to really focus in on expanding in this community and this area [00:45:51] because I think there's a stronger market [00:45:53] up there than in Tampa. [00:45:55] I was a professor at USF for over 12 years. [00:45:58] I've dealt quite extensively with the different players [00:46:01] in that market, and I think that there's a real opportunity [00:46:04] to position themselves in the marketplace by investing [00:46:07] in the city of New Port Richey. [00:46:10] I don't know why you didn't start the three-minute clock, [00:46:14] okay, probably because you know it's going to go over, okay. [00:46:16] You got this whole thing rolling, so we're giving it back. [00:46:18] Well, the point also is I think it needs to be said publicly, [00:46:22] which I've never had a chance to do, [00:46:25] is that we have a truly excellent council and city staff [00:46:31] that really understand the challenges [00:46:33] that this city's had over the years, [00:46:34] and have been able to make the really bold [00:46:36] and brave decisions that are necessary to do that. [00:46:39] The economic times are much stronger these days. [00:46:42] From a tax perspective, the tax laws up north [00:46:45] drive a lot more people down here, [00:46:46] which do drive up the values, and however the incentive is, [00:46:52] working with these guys, I do find that they are reasonable, [00:46:56] and I do think that there is a meeting of the minds [00:46:58] that can occur that can benefit the citizens [00:47:01] quite extensively going forward in time, [00:47:04] particularly from the educational standpoint. [00:47:07] These individuals, when they decide to, [00:47:10] that are challenged in the schools, [00:47:12] when they walk into these classes, [00:47:14] and I'll tell you, I taught at a community college [00:47:16] for over, I think, 15 years, and they offered me [00:47:19] a full-time job, decided to move to Florida at the time, [00:47:22] and I like teaching community college students [00:47:28] at the freshman and sophomore year level, [00:47:30] because they were hungry for the information [00:47:32] that they might not have gotten in their earlier education. [00:47:35] I've taught at the doctoral level at the universities, [00:47:38] I taught mainly at a master's degree level at the university, [00:47:41] and when I was working here my first two years, [00:47:44] I was teaching entrepreneurship at USF [00:47:46] and driving down after work. [00:47:47] So, again, you know, I can't, [00:47:50] and thank you for the opportunity to speak, city manager, [00:47:54] and I want to thank all you guys, [00:47:55] and I wish you the best in your decision. [00:47:58] I know that you believe that your decision's [00:48:01] on behalf of the citizens of New Port Richey, [00:48:03] and thank you for your time. [00:48:04] Thank you. [00:48:05] Open it up if anybody else in the audience [00:48:08] wants to say something. [00:48:11] Come on down, John. [00:48:18] John Cain, 6041 Florida Avenue. [00:48:23] Kind of hard to follow all that up. [00:48:27] You know, I have a lot of people with a lot of credentials [00:48:29] and a lot of education in this, [00:48:31] and they built a lot of trust from this community. [00:48:36] I can tell you, I have some, [00:48:38] this is kind of a mixed conversation, [00:48:39] so I have some questions built in. [00:48:41] So I also remember the sale [00:48:44] of the Baptist Church property and all. [00:48:48] There were some things that were done, [00:48:50] because I had looked up a lot of CRA law, [00:48:53] that weren't done, and I had presented that, [00:48:56] and it was, in fact, [00:48:58] there's a lot of things that weren't done, [00:49:00] but one of the things I came across was that [00:49:04] to purchase that, according to CRA law, [00:49:07] there was supposed to be a full-page ad run [00:49:10] in any one of our local papers to the public, [00:49:14] giving them the opportunity to, [00:49:17] and have a special meeting for the public [00:49:20] to come and give an informed input into that process. [00:49:25] I don't know if this qualifies for that. [00:49:28] I don't know if that law has been changed, [00:49:30] if that's something that was taken out. [00:49:34] But I think it's important to do that nevertheless. [00:49:37] This is a big decision, and I think people, [00:49:41] there's a lot of smart people out there, too, [00:49:43] that probably have something to say. [00:49:48] I know we did lose money on that, [00:49:52] on that Baptist Church, as you all know. [00:49:54] I don't know that we'll ever make that back. [00:49:57] That was a lot of money. [00:49:59] I know everybody's saying these figures and projections, [00:50:02] and I've been in this chamber a few times, [00:50:06] first time with the rec center, [00:50:07] and we had people from Bank of America [00:50:09] that were all professionals in investments, [00:50:12] and they gave us their figures and guarantees. [00:50:17] And you know, we're still paying on that also. [00:50:20] So it seems like no matter where we get these guarantees [00:50:25] and projections, it seems like the world goes on, [00:50:31] and it does whatever it's going to do. [00:50:34] And whether or not we have a recession, nobody here knows. [00:50:38] Some of their Reuters the other day [00:50:43] said that we are already in a standstill, [00:50:46] and that a lot of these projections that you're hearing [00:50:50] are just simply not so, that they can't project [00:50:54] when it's going to start, [00:50:55] but they feel we're going to start slipping. [00:50:57] I don't know. [00:50:57] It's not my thing. [00:50:58] I can't tell you, but I can tell you what I do here [00:51:01] when I listen to the news. [00:51:04] If that be the case, [00:51:07] if there's a possibility that we could lose, [00:51:10] I think that should be considered, majorly considered, [00:51:15] because no matter how you cut it, it's still a projection. [00:51:19] It's still a gamble. [00:51:21] And I don't know. [00:51:23] I also kind of missed, because at the last thing I said in, [00:51:27] I didn't know that we already purchased that property. [00:51:31] I thought, because there was a vote on something [00:51:35] about the storm, borrowing the money [00:51:38] from the stormwater fund. [00:51:40] And that was at the last meeting I was at. [00:51:42] And I thought we hadn't gotten to the point [00:51:44] where there was a vote, but now I'm hearing CRA money, [00:51:47] which I'm a lot more comfortable with. [00:51:50] That all happened very fast that night. [00:51:54] Even the deputy mayor was a bit confused [00:51:57] as to how it all happened so fast. [00:51:59] There was almost no discussion. [00:52:00] It went from one person opening to have a discussion [00:52:04] to another person moving for a vote. [00:52:06] It got voted on, and I still don't know what happened. [00:52:10] But anyway, as a citizen, those are my concerns. [00:52:14] Those are my comments. [00:52:15] I enjoy everything you've done that's worked out well. [00:52:19] I enjoy the park. [00:52:20] I enjoy all the adjoining things to that park. [00:52:22] I'm looking forward to more things. [00:52:26] But I'm going to confess to you, [00:52:27] I am a little leery about big investments [00:52:31] when I hear big amounts of money. [00:52:32] And I would like it to be a little simpler [00:52:35] for the simple citizen like myself [00:52:38] to understand how much we really going to be putting out [00:52:42] and exactly where it's all coming from. [00:52:45] And I would also like to know if this is something [00:52:46] that has to be advertised for a special meeting, [00:52:49] being it's under CRA. [00:52:51] I don't know. [00:52:52] Thank you for your patience. [00:52:54] Thank you, John. [00:52:55] Anyone else? [00:52:57] Seeing no one else, come forward, bring it back. [00:52:59] Would ask to the attorney, [00:53:00] are we okay as far as the advertising is concerned? [00:53:03] We've advertised it, right? [00:53:04] Yeah. [00:53:07] And as Ms. Mance pointed out, [00:53:10] the total price is 4,000,250,000. [00:53:18] And if you take the two parcels, [00:53:20] the 1.75 and the 2.5, [00:53:25] it adds up to the 4,000,250,000. [00:53:28] So it's basically a wash. [00:53:31] And my understanding is we're looking at having [00:53:35] what's called a simultaneous closing, [00:53:38] which means that the city's not out [00:53:41] the 4,000,250,000 for more than a few seconds. [00:53:45] Mr. Mayor, may I ask a question? [00:53:47] Sure. [00:53:47] Tying into that, if I may. [00:53:49] That's how I, that's how it was presented to me as well, [00:53:52] unless I misinterpreted what you said earlier. [00:53:55] I was under the impression that the way the deal was brokered [00:53:58] that the city would not be purchasing [00:54:01] the Walgreens building at all. [00:54:02] That's what I was told, [00:54:04] unless I misunderstood a few days ago. [00:54:07] If that's not the case, [00:54:08] if the city does still need to go ahead [00:54:10] and purchase the building, [00:54:12] why not have a simultaneous closing [00:54:15] as with the Goins properties? [00:54:17] Because you said something about [00:54:18] maybe up to 60 days we would hold it. [00:54:22] In response to the Deputy Mayor's question, [00:54:26] we are already in an agreement [00:54:30] as it relates to the purchase of the Walgreens property. [00:54:36] We actually were due to close on that [00:54:39] by the end of the calendar year, [00:54:42] but as a result of the fact that Encore Development Company, [00:54:47] who is the company that owns the property, [00:54:51] did not have their attorney complete closing documents, [00:54:56] it didn't occur. [00:54:57] We actually just received closing documents [00:54:59] on Friday of last week. [00:55:01] And there are actually two ways we can proceed. [00:55:05] I can ask Encore Development Company to delay the closing [00:55:12] and pay what I expect would be a carrying cost [00:55:17] for the privilege of doing that. [00:55:19] And we would have to determine whether that amount of money [00:55:23] was worth a delay or not. [00:55:27] Or we can go forward with the closing [00:55:30] knowing that as soon as we obtain land control [00:55:37] on the Goins Rivergate pieces [00:55:39] that we would be in a position [00:55:42] to convey the property to Kenan Development Group. [00:55:47] I don't want to pay any more than we have to. [00:55:49] And don't get me wrong, [00:55:50] I'm hugely in favor of this project. [00:55:53] I think it's going to be just a catalytic. [00:55:57] And we've been talking about the Harbors Redevelopment Plan [00:56:00] for years and years and years. [00:56:03] And everyone just keeps saying, [00:56:04] when are we going to see some results? [00:56:05] When are we going to see some changes in West Pasco? [00:56:08] Similar to a project of this size. [00:56:12] A little disappointed, I don't want to say disappointed, [00:56:14] but I'd like to see the county involved in some way. [00:56:17] That was their project, the Harbors Redevelopment. [00:56:19] And this is where they said it needs to start. [00:56:22] It is in our city limits. [00:56:23] But I think we should reach out to the commission [00:56:26] and to Mr. Biles and see what they can bring [00:56:29] to the project if possible. [00:56:31] But once again, I'm hugely in favor of the project. [00:56:33] I think it's going to be an economic stimulus [00:56:36] for that area that we've been talking about [00:56:38] between the bridge on Main Street and US 19. [00:56:40] I think it's going to have a huge economic impact [00:56:43] on our businesses, on restaurants, and delis, [00:56:45] on Sims Park. [00:56:46] I just have these visions of students [00:56:48] sitting in the park on a nice spring day [00:56:50] studying and eating in our downtown. [00:56:52] It's very, very exciting. [00:56:54] I'm very, very excited about this project. [00:56:56] The College University and the hotel, [00:56:58] I guess I just misunderstood you [00:57:00] when we had a conversation previously. [00:57:03] I thought we were no longer purchasing [00:57:04] the Walgreens building. [00:57:06] Yeah, I'm sorry if I didn't represent it [00:57:08] clearly to you at that time. [00:57:09] It might have been me. [00:57:10] Yeah, and we're going to keep a piece. [00:57:12] I understand that. [00:57:13] So, I would probably go a step further [00:57:17] and suggest that either as a CRA or as City Council, [00:57:24] we need to dust off the plans for right-sizing [00:57:31] or streetscaping, whatever you want to call it, [00:57:34] the section of Main Street that runs from River Road [00:57:38] all the way to US 19, because once this project opens, [00:57:45] there is going to be significant interest, I believe, [00:57:50] by the owners of all of the properties between them [00:57:56] to upgrade their buildings. [00:57:59] A lot of those buildings are in [00:58:03] charitably horrible condition. [00:58:07] They were built back in the 50s in many cases. [00:58:11] They don't have adequate electric. [00:58:12] They don't have adequate air conditioning. [00:58:15] They're just not adequate all the way around. [00:58:18] And you could make a pretty good case [00:58:25] to do a tear down and replace [00:58:28] of a whole bunch of those buildings [00:58:31] and bring them up closer to where Main Street ought to be. [00:58:36] And so, I think we need to be thinking in those terms [00:58:39] because there are going to be some people [00:58:42] that are knocking on the door [00:58:43] of our Economic Development Director and saying, [00:58:46] Mr. Rudd, we'd like to refresh our building. [00:58:50] What can we do with the city? [00:58:54] And I think those questions are going to come [00:58:56] sooner rather than later. [00:58:58] So, but I agree with you, Mr. Starkey. [00:59:02] This is, I think, will set the tone [00:59:06] for that entire section of Main Street. [00:59:10] With Main Street landing on one end [00:59:13] and Kaiser University on the other, [00:59:17] that's going to be an exciting place [00:59:18] for people to open businesses. [00:59:21] Mr. Davis, any thoughts? [00:59:23] I didn't know if we were going on [00:59:24] or whether we were going to get the presentation. [00:59:27] Do we have a? [00:59:28] We can certainly ask them any questions if they've got. [00:59:32] Did you guys want to do a presentation? [00:59:41] This is Mr. Belkina. [00:59:42] I think the presentation that we've seen so far [00:59:46] is pretty comprehensive and. [00:59:48] Raise the mic up, people can't hold it. [00:59:50] Oh, sorry. [00:59:52] What we've heard, Ms. Manns has put together, [00:59:56] city manager, is a very comprehensive description [00:59:59] of what's proposed. [01:00:00] I mean, I can flesh that out with some additional details. [01:00:05] Maybe a brief history of our relationship with Kaiser. [01:00:09] We have been doing business with them for a period of 27 years. [01:00:14] Our first endeavor was to buy a building together 27 years ago. [01:00:19] And since that time, our construction company, which I'm the qualifier since the late 80s, [01:00:26] has done all sorts of work for them. [01:00:27] They often go to a market, and once they get comfortable, their leasing will help them [01:00:33] with their leasehold improvements as a history. [01:00:37] Then they might say, well, I think we're interested in this market. [01:00:41] And they put us in charge of trying to find some land and do a ground-up construction. [01:00:46] This over a period of 27 years would be our 11th ground-up construction facility. [01:00:53] So during that period of time, we do all kinds of construction work for them on their own. [01:00:57] We look at leaseholds and help them out with any and all of their real estate needs. [01:01:02] So as far as this particular property is concerned, Mario and city manager Manns, as I pointed [01:01:13] out, the initial history was there's too many moving parts. [01:01:18] And what we mean by that is the ownership, there was control through contractual relationships [01:01:24] with one of the developers whose plan were predicated on the future elements coming together [01:01:30] and that development coming together, predicated on certain other things like a house of cards [01:01:34] on top of a house of cards, and another land ownership with the Walgreens site that I think [01:01:41] at some point that developer had plans for that. [01:01:44] We tried to look for a way to work something out, and it just wasn't possible. [01:01:51] Afterwards, we actually secured a contract with another piece of property, which we currently own. [01:01:56] And Ms. Manns has been very instrumental, and I applaud her tenacity in working with [01:02:08] us to try to put this together in, as it turns out, a limited period of time due to the advanced [01:02:14] stage that we're in our current contract. [01:02:18] This was always a preferred location for the university. [01:02:22] It's better for them. [01:02:24] And I think a key catalyst for this being able to come together to this point is the [01:02:30] commitment on behalf of the city to, or the CRA, to get the Walgreens property under contract. [01:02:37] And my take on that is you agree to the city to buy that, you've taken that leap of faith [01:02:44] to say we're not going to let this key piece of property go. [01:02:48] And sometimes you have to dig deep to do that, but that's a key element to this whole thing. [01:02:53] And then working together to get the additional piece that would come together for us. [01:02:59] We worked together and came up with a development plan. [01:03:04] A lot of things happened very quickly. [01:03:07] And so we're in a position now to make a final commitment. [01:03:14] We have signed up an agreement that we're hoping will be accepted. [01:03:20] And I just want to point out that the way it's structured then, so given that the city [01:03:26] has agreed to buy that property without our participation, and that's fixed, so there's [01:03:33] no incremental dollar that will be spent by the city because it's structured on us [01:03:40] having committed to building this facility. [01:03:43] So that means you're locking your initial investment into a certainty. [01:03:49] And that, I think, is something that you should maybe look at, that incremental way of seeing [01:03:57] what you're getting for what we're going to bring to the table. [01:04:05] Mr. Davis, any questions? [01:04:08] Yeah, I do. [01:04:09] Okay, go ahead. [01:04:10] I do, because one of the things that is often the buzzword in the redevelopment community [01:04:19] is public-private partnership. [01:04:23] The city does own another piece of property that we bought a long time ago to have a good [01:04:27] bit of capital investment in, which is the church at the other quadrant, which is not [01:04:32] a part of this deal that's being presented to us. [01:04:36] But the city's interest is a broader interest. [01:04:39] This was proposed to us on the CRA as phase one of the gateway area. [01:04:45] So in tagging along with what the mayor has said and what the deputy mayor has said with [01:04:51] respect to where all this heads, I want to maybe just question you and confirm what I [01:05:01] believe is your true partnership approach to this, which is for a public partnership [01:05:11] to work, both parties have to see the advantages. [01:05:14] We've heard the revenue stream. [01:05:16] We've seen that this is a cash-positive, long-term investment for the city. [01:05:23] It's been described by our experts. [01:05:26] We know your position, that you want to have certainty and know that you can build this building, [01:05:30] that you can make your deadline, you can get your university open in time. [01:05:36] A lot has been said about the parking. [01:05:38] The agreement incorporates parking. [01:05:41] When I look at the site plan, I'm seeing a huge retention pond and parking lot off of Main Street. [01:05:51] A huge retention pond? [01:05:53] Well, I'm sorry. [01:05:56] I don't see the retention here. [01:05:58] I guess I'm looking at the building here, your second building, I guess, that you have in mind there. [01:06:04] That's the national. [01:06:07] That's your hotel. [01:06:08] I'm sorry. [01:06:10] The property is comprised of three individual parcels. [01:06:14] The first one is the Walgreens, and then the second one is owned by AG. [01:06:19] Don't get too upset. [01:06:22] What I'm trying to get to is I've been an advocate of having a block-wide approach to the stormwater utilities. [01:06:34] As it comes to the folks we want to bring along, whether it's Mr. Chalice, long-time CPA, Mr. Waller, [01:06:41] a long-time attorney who sold his property in Simms Park, by the way, to allow us to consolidate that property once before. [01:06:49] For us to get our vision of getting Main Street itself, which I guess I'm trying to position myself here on the top, [01:07:00] to get Main Street itself to keep on going is to find a way to come back to you to say maybe there's a better deal. [01:07:09] Maybe we don't need you to put all that parking in place now. [01:07:11] Maybe we go forward with the parking garage. [01:07:14] Maybe we inch you out closer to the highway. [01:07:17] Maybe we try to get some immediate opportunity for you to have a better deal, [01:07:25] which would become a better deal for our residents as well by taking not just giving you $2 million [01:07:31] but providing you with parking immediately and perhaps being able to do some master planning of that. [01:07:39] If we master planned the whole thing, it probably wouldn't look like that because we have a parking garage right from the start. [01:07:45] So when I had a private opportunity to speak with you all, I suggested that if we acted quickly [01:07:54] and we were able to take to the county, to their planners, as the Deputy Mayor has said, we're their skin in the game, [01:08:00] and to the Regional Planning Council, who's done some visioning for us to see in a few weeks [01:08:07] that we may have an even more grandiose vision of how we would like that to work, [01:08:12] and come back to you and say we'd like to improve the conditions for you, improve the economic circumstances for you. [01:08:22] So my agreement to vote for this is to say I'll vote for this, that's your right, you have it, [01:08:27] but I would like to ask you if you would be willing in the next 20, 21 days to let us show you some of the innovations [01:08:39] that we could do for resiliency in terms of improvements of impervious surfaces, [01:08:46] providing stormwater onsite off of your site, providing more density for you, providing more opportunity for you, [01:08:57] versus the site plan that you have, which is attractive, but if we could make it more attractive, [01:09:05] I'm just asking if you would give us 30 days. [01:09:08] You pushed us that you had to get this decision made because you were in that point. [01:09:13] I'm asking you to give us another 30 days to internally through our planning department, [01:09:19] through our discussions with our Regional Planning Council, and through discussions with the property owners [01:09:25] up and down Main Street to say we're offering this deal to someone who wants to do something. [01:09:31] We can offer that same deal to all of those properties as well or to somebody interested in developing it [01:09:37] and develop this parking lot right now versus having you pave all of that and have to go to that expense. [01:09:46] Well, I will say that we have a rather tight schedule to achieve an opening by the end of their existing lease, [01:09:58] which is April 30th of next year. [01:10:02] That translates to us starting breaking ground in June. [01:10:06] Between now and then, typically the approval process is rather lengthy in most cities, [01:10:12] and I think you can perhaps find ways to streamline that for us here to the extent that you can [01:10:17] because there are certain jurisdictions that we need to deal with like FDOT and the Florida Water Management District, [01:10:24] which can sometimes be a tedious process. [01:10:28] So in order for us to get going, we have to sort of get our plans together fairly quickly. [01:10:33] Now, certain things like pervious drainage within the parking lot doesn't change the orientation, [01:10:39] doesn't change the building locations, which we could accommodate if you had an idea of how our costs were otherwise equal. [01:10:45] Sure, we'd look at it. [01:10:46] We're flexible people. [01:10:47] As far as using the other property to house drainage, the way we understand it, [01:10:53] that a certain portion of the drainage will go on the neighboring roads, [01:10:57] and a certain portion of it will go along Acorn Street and tie into an existing. [01:11:03] But you're required now to have retention ponds to hold that before you put it to us, [01:11:08] or we're required to provide you with a master utility. [01:11:13] So all I'm saying is the utility wasn't discussed in the memo. [01:11:17] It was all parking. [01:11:19] I've just come from a resilience conference with the mayor. [01:11:23] I'm on the Regional Planning Council's resiliency steering committee, [01:11:29] and I'm looking for ways for us to build a community that will last well beyond, you know, [01:11:36] the 20 years or 30 years with parallel flood and some of those things. [01:11:40] Well, I guess I can just say we're always open to suggestion, [01:11:44] and to the extent that we want to entertain something that won't trip us up to get this thing open in time, [01:11:51] we're open. [01:11:53] Thank you. [01:11:55] Particularly if the city wants to contribute in some way to help do something. [01:12:01] Let's have a look at it, sure. [01:12:02] But in the meantime, we'll be doing what we need to do to get this open. [01:12:07] I appreciate that answer. [01:12:08] Thank you. [01:12:09] Very good. [01:12:10] Mr. Murphy? [01:12:12] Nope, nothing at this time. [01:12:15] I'd like to say a couple things. [01:12:17] First of all, I met with Dale and Bill and enjoyed our conversations and the route we're going, [01:12:24] because I found out, and Debbie can vouch for, I'm the type of guy that finds out what you're really about when I sit down [01:12:30] and talk with you, and I was real happy with you guys. [01:12:34] I know you'll come through with a project that you've set. [01:12:37] So I was real happy with that. [01:12:39] Something about education I want to talk a little bit about, not just, you know, you can have a seat now as far as I'm concerned. [01:12:45] You know, this has to do with the whole project. [01:12:48] You know, we have 46% rental in this area, and we have a 7% college education. [01:12:55] If we put on the main street, the main corner of our town, [01:12:58] this is how much education is important to us, [01:13:00] then I can't see a better advertising tool of what we want in this community [01:13:05] than to have a university on the corner of Main and US 19. [01:13:12] Another thing is I'd like to thank Mr. Willis. [01:13:15] Mr. Willis was my English teacher, which was my hardest subject in school. [01:13:19] He was my sophomore, junior and senior English teacher. [01:13:24] And I know more about Shakespeare than probably everybody in this room together. [01:13:28] And I don't even need to talk about it and don't want to talk about it anymore. [01:13:32] But what he said was he said, Chopper, he says, just get your diploma. [01:13:38] It doesn't make any difference what you get it in. [01:13:40] So you can write 16 down instead of 12 and meaning you got a college education versus a high school education. [01:13:47] And I think that if we put that on a 19 in Main Street, we're telling this town that we're here to help you get an education. [01:13:54] We're helping you get a foundation in your life that you could take for the rest of your life. [01:13:59] And I can't be happier than to be a part of this project. [01:14:03] Some mention was up here about the harbors project. [01:14:06] The harbors was, in my opinion, I've been around since it came around, is a dream of the county and not a reality dream. [01:14:18] I was here sitting in this in these in this building in this room when this county commission, county commission was here. [01:14:28] The county staff was here and the administrator and they just went through the motions to talk about the harbor project. [01:14:37] They were not going to do anything. It was pretty much a great project. [01:14:40] As long as private industry stepped up and as long as the public, you know, public got behind it. [01:14:46] And that's kind of what we're doing right now. [01:14:49] This project is a private project and it's getting the backing of the city. [01:14:53] And I just can't think of anything better that I'd like to see. [01:14:56] There is a business on Main Street. [01:15:00] that I was involved with, and the people that own it now bought it a year and a half ago. [01:15:05] And it's Jilly's, and those who don't know. [01:15:09] And he said, we've been waiting for Main Street landings to open up, because then it's going [01:15:13] to direct on what we do with that piece of property. [01:15:15] Well, if we go ahead and add a university on the other end of the corner, I don't think [01:15:20] that he's going to be waiting very long before he changes his ideas on the project that he [01:15:24] wants to put there. [01:15:25] So I'm 100% behind this project. [01:15:28] I can't wait for it. [01:15:29] And I'm glad you're on a deadline. [01:15:33] Thank you. [01:15:34] Any other comments or questions? [01:15:35] Real quick, yes. [01:15:36] I agree 100%. [01:15:37] We welcome your partnership. [01:15:38] It's going to be just a phenomenal project for our city. [01:15:41] I'm very, very excited about it. [01:15:42] I want to thank you, Mr. Iazzoni, for, I know you put, even though you're not employed by [01:15:47] the city anymore, a tremendous amount of work into this. [01:15:49] Ms. Manns, once again, I may have misunderstood the whole Walgreens property, but at least [01:15:53] we have a contract to sell it, unlike the other real estate that we bought in the past, [01:15:57] correct? [01:15:59] And thank you, Mr. Driscoll, for all of your hard work. [01:16:01] I know you guys have been just, burned the candle at both ends this past week to 10 days [01:16:06] to put all this together. [01:16:07] Thank you for working with the city, and just very, very excited about the partnership. [01:16:12] I can't wait until it's done, and I'm just a true believer this is going to spearhead [01:16:17] redevelopment from the bridge to 19th. [01:16:19] Very, very excited about that. [01:16:22] If we could have the three motions that need to be dealt with, could you get those up on [01:16:28] the screen for us? [01:16:30] And Mr. Altman. [01:16:31] Yeah, one more, one more comment. [01:16:33] Related to the hotel, as it's been described, I'd just like to understand the legal aspect [01:16:38] of it a little bit better. [01:16:40] We've got a proposed hotel, we've had a projection of revenue that could be created by it, and [01:16:45] then we have a comment that if it isn't built, that it would be sold. [01:16:48] So does the city retain a right to repurchase if it's not done? [01:16:52] Is there any kind of deadline for a decision on that? [01:16:56] The end result was, through the negotiations, that that is just a parcel that they're going [01:17:01] to continue to own. [01:17:02] That is a development opportunity. [01:17:04] You can certainly question them about whether they're going to do it or not, but there are [01:17:08] no commitments in this deal that they will develop the hotel. [01:17:12] I understand that. [01:17:13] If there is a development hotel that's interested and they're not, I wouldn't want that parcel [01:17:18] to find us in the same boat we were at trying to acquire land to complete our redevelopment. [01:17:23] So I would like to hear from them if I can, if there's any... [01:17:32] Well, as far as the additional land comes into play, our initial interest was simply [01:17:40] to build an education facility, which is what we do. [01:17:44] So we needed, in most cases, we get about 10,000 square feet per acre. [01:17:50] We need typically four acres, more or less, for a project of this size. [01:17:54] And this whole property comes in a 4.26 acre piece, which works for a fairly close fit. [01:18:01] So that's perfect. [01:18:03] So basically, in order for our facility to work, we need to place our building and surface [01:18:07] park the rest. [01:18:09] It's just the nature of the business. [01:18:10] We have the university, when they function, they have peak times. [01:18:13] They have a lot of parking, particularly when they have convocation, have guests. [01:18:17] These need to be accommodated for. [01:18:20] So then we discussed a goal that the city has, which was, if the city was able to somehow [01:18:30] produce some higher density parking, would that free up some land? [01:18:35] Which it would. [01:18:36] And then we had some initial discussion. [01:18:39] We built facilities. [01:18:41] We have in the past, and some of the owners of the university own hotels, and we sort [01:18:46] of talked about that as a potential. [01:18:48] I said, listen, we have enough problems getting this initial phase one discussed and agreed [01:18:54] to without bringing in the future. [01:18:56] So the city has the option, but not the obligation, to build this parking facility. [01:19:00] And we didn't come up with some agreement for them to enforce, but I think when the [01:19:07] time comes to exercise the option, something might come up where we discuss that, and the [01:19:14] city can say, well, you know what, maybe we'll just cool our heels for now and not [01:19:19] make that investment and leave it the way it is, or we come up with some idea. [01:19:22] So that's basically where we stand on it. [01:19:27] It's only in the event that the structure gets built, that that land gets freed up, [01:19:31] and to the extent that happens, then we'll figure something out. [01:19:36] So, conversely, we could free up the land now by accepting the responsibility to provide [01:19:41] parking to the whole area and design a common parking area internal, which is one of the [01:19:46] problems we have on Main Street, which is all parking outside of the units and trying [01:19:51] to move them. [01:19:52] So I understand your answer, and I'm hopeful that this great relationship that's been described [01:19:59] over the years will continue to result in fairness on both sides as we go forward. [01:20:05] And I apologize. [01:20:06] I often interchange city and CRA, you know, that's a different, it's a technical issue, [01:20:12] a distinction for me, which sometimes I... [01:20:14] Aaron? [01:20:15] Yes, sir. [01:20:16] Are we going to be voting all three of these? [01:20:18] One at a time. [01:20:19] But is there going to be discussion between each one, or is it just... [01:20:22] We can do discussions, if you would like, between each one. [01:20:24] I would just caution you that unless you're going to vote in favor of all three, you shouldn't [01:20:28] vote for any, because they're all intermingled, and the whole project is dependent upon all [01:20:34] three of these agreements being approved. [01:20:35] All right. [01:20:36] Well, if I could just say real quick, then I don't need discussion in between each one. [01:20:40] I just want to say the option portion of it is, I think, is very important to the future, [01:20:47] both of that corner, that area, for redevelopment, and that's something we really have to look [01:20:50] at seriously, part of the parking garage, because I know one of the things that I don't [01:20:57] like to see, and I would imagine a lot of people don't like to see, is a sprawling parking [01:21:01] lot. [01:21:03] That's kind of what we have there now, and it's not something that's going to look good. [01:21:08] Just from a density standpoint, we really need to look at that hard and weigh those [01:21:14] options for the parking garage, because we could be really inhibiting future growth there [01:21:20] by not having something that can dense that area. [01:21:24] I would go one step further and say, if we're going to be talking about doing a parking [01:21:28] garage on that particular parcel, we might also want to be talking about an additional [01:21:34] parking structure in the historic downtown, because we might well be able to get a better [01:21:42] deal on construction if we're doing two of them at the same time. [01:21:47] I don't want to muddy tonight's discussion. [01:21:49] Right. [01:21:50] We'll have future discussions about that. [01:21:51] I've done that enough already, too. [01:21:52] I agree. [01:21:53] Okay. [01:21:54] The paperwork that I saw, I'm not sure if it's in the new paperwork, but it was that [01:21:59] we have an option on the parking garage for six months. [01:22:02] Is that correct? [01:22:03] Or is that... [01:22:04] Actually, it's April 30th of this year. [01:22:07] Okay. [01:22:08] It was originally six months. [01:22:09] Okay. [01:22:10] All right. [01:22:11] So it's changed to April 30th. [01:22:12] Okay. [01:22:13] Correct. [01:22:14] We like deadlines on ourselves now, don't we? [01:22:15] Probably. [01:22:16] Do we have anybody that would like to make a motion? [01:22:19] I'll make a motion that we accept all three at one time. [01:22:25] I'll second. [01:22:26] We have a motion and a second. [01:22:27] Is that going to pass legal muster? [01:22:29] I'd rather you vote on each contract and approve it, if you could. [01:22:32] All right. [01:22:33] I'll make a motion. [01:22:34] What do we do for the first contract? [01:22:35] Second. [01:22:36] Second. [01:22:37] Very good. [01:22:38] Any discussion? [01:22:39] I'm hearing none. [01:22:41] All those in favor of the first item, please signify by saying aye. [01:22:44] Aye. [01:22:45] Aye. [01:22:46] Opposed? [01:22:47] Like sign? [01:22:48] Very good. [01:22:49] All right. [01:22:50] I'll make a motion for the second contract or agreement. [01:22:52] Second. [01:22:53] Thank you. [01:22:54] Any discussion? [01:22:55] Hearing none. [01:22:56] All those in favor, please signify by saying aye. [01:22:57] Aye. [01:22:58] Aye. [01:22:59] Opposed? [01:23:00] Like sign? [01:23:01] I'll make a motion to accept the third agreement. [01:23:02] Second. [01:23:03] Any discussion? [01:23:04] Yes. [01:23:05] Yeah. [01:23:06] Just because this is related to the parking, and I just want to put it on the record that [01:23:07] I'm anxious and hopeful that the city can act quickly to try to develop a better vision [01:23:08] of how this will work and to establish our commitment so that everyone will know exactly [01:23:09] what we're hoping to do. [01:23:10] Very good. [01:23:11] Further discussion? [01:23:12] Any discussion? [01:23:13] Hearing none. [01:23:14] All those in favor? [01:23:15] Aye. [01:23:16] Aye. [01:23:17] Opposed? [01:23:18] Aye. [01:23:19] Aye. [01:23:20] Aye. [01:23:21] Aye. [01:23:22] Aye. [01:23:23] Aye. [01:23:24] Aye. [01:23:25] Aye. [01:23:26] Aye. [01:23:27] Aye. [01:23:28] Aye.

   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.

7. 7Communications▶ 1:23:29
8. 8Adjournment▶ 1:27:20