On the agenda

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

   Approval of February 18, 2020 CRA Meeting Minutes

   approved

   The CRA Board approved the minutes from the February 18, 2020 CRA meeting.

   • motion:Approve the February 18, 2020 CRA meeting minutes. (passed)

   ▶ Jump to 0:29 in the video

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   [00:00:29] Okay, Mr. Mayor. [00:00:30] Next thing on the agenda is approval of the February 18th CRA minutes. [00:00:35] Second. [00:00:36] Discussion? Hearing none, all those in favor, please signify by saying aye. [00:00:41] Aye. [00:00:42] 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

   Discussion Related to the Proposed Establishment of a Parking Structure on Property Located East of U.S. Highway 19 and South of Main Street

   discussed

   CRA staff and consultants presented a proposal to construct a ~350-space parking structure on a 1.29-acre parcel at the southwest corner of US Hwy 19 and Main Street as part of the Rivergate District redevelopment, tied to a January development agreement with Tina Development that would also create sites for Kaiser University and future development. Staff discussed financing options of approximately $6.5 million via city bond (Covenant to Budget and Appropriate), comparing 10-year vs 15-year amortization and tax-exempt vs taxable structures. No formal decision was requested at this meeting; staff will return with financing recommendations.

   • direction:Board received presentation on proposed parking structure financing; staff to return with detailed financing recommendation after further analysis. (none)

   📍East of U.S. Highway 19 and South of Main Street🏢BMO🏢Downtown Gyro and Seafood Shop🏢Ford & Associates🏢Kaiser University🏢Keenan Development Company🏢Media General🏢River Road Church🏢SunTrust🏢Tina Development🏢Walgreens👤Ben👤Duane Draper👤Mr. Rudd👤Will Reed#$6.5 million parking structure financing#10-year vs 15-year bond amortization#CRA Tax Increment Financing (TIF)#Covenant to Budget and Appropriate#Future development site (up to 60 spaces)#Gateway site#January 2020 purchase agreement with Tina Development#Kaiser University parking agreement (140 spaces)#Rivergate District redevelopment

   ▶ Jump to 0:45 in the video

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   [00:00:45] Next is a discussion related to a proposed establishment of a parking structure on property [00:00:51] located east of US 19 and south of Main Street. [00:00:55] Yes, sir, Mr. Mayor. [00:00:57] In that respect, to initiate the discussion this evening, I'd like to point out the fact [00:01:03] that the CRA and the City both have an opportunity, a very rare opportunity, to play a part in [00:01:12] the revitalization of the Rivergate District. [00:01:15] As the Mayor indicated in his introduction of the agenda item, the property is located [00:01:23] on the south side of Main Street, just east of Highway 19, and it's a very well-situated [00:01:30] piece of property. [00:01:32] It's located about halfway between city border to border on US Highway 19 and also in close [00:01:40] proximity to the city's downtown core. [00:01:44] Opportunities such as this don't come along frequently, but when they do, they're about [00:01:50] leading change and mobilizing reinvestment. [00:01:55] This is a copy of an aerial photograph which depicts the full property, which is 8.66 acres [00:02:04] in size. [00:02:06] It includes, on the corner, 1.4 acres of the former Walgreen's site, 2.63 acres of property [00:02:16] which currently houses the former Media General building, 0.5 acres of an out parcel that [00:02:26] was the former location of the downtown gyro and seafood shop, the current SunTrust building [00:02:33] and property, which is 2.18 acres, and 1.87 acres of property which is owned by the city [00:02:43] and is the former River Road church property. [00:02:49] As all of you know from your seat on the CRA, a key to revitalization in any urban area [00:02:58] is density. [00:03:01] One of the ways to achieve density is to free up land, and land is usually devoted in an [00:03:12] urban environment to parking and to buildings, and going vertical is a solution to achieve [00:03:21] density through design and construction. [00:03:25] Parking lots, unquestionably, are a large consumer of land. [00:03:33] They always vary in terms of their sightliness. [00:03:37] They also are always, though, essential to the key of market success of development projects. [00:03:49] When you consider the possibility of a structured parking, that can be said that it is an opportunity [00:03:59] to free up land for additional development. [00:04:04] In considering both density and the fact that parking lots take up valuable lots, you might [00:04:12] be tempted to say, so why are commercial lots surrounded by asphalt parking lots typically? [00:04:19] And the answer is quite simply that it's easier and cheaper to construct asphalt parking than [00:04:26] it is to construct a parking deck. [00:04:29] On an average, a surface parking lot costs about $4,000 per space. [00:04:38] On an average, a parking structure space costs about $20,000. [00:04:44] So, it can be said that the largest impediment in any case to constructing a structure is [00:04:52] the cost of it. [00:04:55] At this point, I think it's important to note that in the case of the proposed parking structure, [00:05:04] cost is not insurmountable. [00:05:07] We are fortunate to have a CRA district. [00:05:11] We are fortunate that this property is bounded within the district, and in our most conservative [00:05:20] estimate, through the year 2049, the CRA will yield $144 million in tax increment dollars. [00:05:31] We'll get further into that discussion as Mr. Rudd goes forward with his presentation, [00:05:39] but I think the most important thing for you to know is that the decision point tonight [00:05:46] clearly is, and will be at the conclusion of our presentation, do we want to do what's [00:05:55] Do we want to do what's easier, or do we want to do what's preferred in terms of the city's [00:06:03] responsibility to drive economic development and be a mobilizer for change? [00:06:11] With that, Mr. Rudd, please go forward with your PowerPoint. [00:06:16] Thank you, Ben. [00:06:33] We talked about not having problems with microphones tonight, so I'm sure we're okay. [00:06:39] We're going to zoom in on the project a little bit closer. [00:06:44] The three parcels we're going to talk about comprise 4.61 acres of land on the southwest [00:06:49] corner of US Highway 19 and Main Street. [00:06:52] The site was comprised, as was already stated, of the Walgreens, the Media General, and the [00:07:16] Seafood Restaurant. [00:07:18] R.A. assembled the parcels for redevelopment. [00:07:21] In January, this board approved a purchase agreement with Tina Development. [00:07:34] That development agreement will create three sites, a Kaiser University site, a future [00:07:40] development site, as well as a parking site. [00:07:44] We're going to zoom in on that parking site, which we're going to talk about tonight. [00:07:50] Part of that agreement is an option agreement in which Tina Development will convey the [00:07:57] parcels you see depicted there to the C.R.A. [00:08:01] parking garage at the C.R.A.'s expense. [00:08:05] The construction must commence by September 1st and conclude by September 30th. [00:08:11] As part of that entire deal, we will also execute a parking agreement in which, within [00:08:17] the structure, 140 spaces will be designated for Kaiser University. [00:08:21] Up to 60 spaces will be available for the future development site. [00:08:26] That site is developed, and in order to meet our parking code, they need 15 spaces. [00:08:33] That number would reduce to 15 spaces, but a maximum of 60 would be made available for [00:08:40] that development site. [00:08:42] Both Kaiser and that future development developer or tenant will pay prorated shares of the [00:08:50] parking garage operation and maintenance expenses. [00:08:53] The plan for us to exercise this option is maintenance. [00:09:03] Kaiser University, up to 60 spaces for future development. [00:09:07] We feel that 350 spaces will take, depending on the final design, will also allow for additional [00:09:15] parking, for improved density, for other redevelopment opportunities to utilize the structure. [00:09:21] This structure will act as a catalyst, or can act as a catalyst, for further development [00:09:27] of the Gateway site. [00:09:29] And I think it might be important to note that the parcel of property that we're talking [00:09:34] about is 1.29 acres in size, and absent a parking structure, the plan of Keenan Development [00:09:42] Company is to construct 250 surface parking spaces to accommodate the development. [00:09:51] Absolutely. [00:09:56] Some research on the cost of the structure that we need. [00:09:59] That is a $6.5 million. [00:10:04] There we go. [00:10:07] $6.5 million would be appropriate. [00:10:12] Next, please. [00:10:14] So, to talk about the $6.5 million financing, we have our consultant here, Will. [00:10:19] Will come up and... [00:10:21] Will Reed of Ford & Associates is present this evening to talk about the amortization [00:10:29] schedules for the debt. [00:10:34] And a copy of a communication from their firm was contained in your packet, as well as a [00:10:42] letter from Duane Draper of BMO. [00:10:47] In Mr. Draper's letter, he talked about the fact that we needed to investigate a little [00:10:55] further, if you determine it's appropriate to construct a deck, whether or not all of [00:11:02] the financing would be eligible to be accomplished on a tax-exempt basis. [00:11:08] Mr. Reed will talk to you this evening a little bit about the difference between a 10-year [00:11:15] and a 15-year schedule. [00:11:18] In part, based on the fact that they're recommending a 10-year schedule, which is a relatively [00:11:28] short time frame. [00:11:31] It is a high number, and please don't allow me to make it sound like it's not. [00:11:41] And we take it very seriously that we'll be asking you to bond to finance the project. [00:11:50] 15 years is a consideration that we would like to look into, in large part, based on [00:11:58] the fact that the annual payment is less. [00:12:03] But the CRA, according to our current very modest projections, is more than capable of [00:12:14] repaying debt either in a 10-year or a 15-year schedule. [00:12:19] I'll let you go ahead, Mr. Reed. [00:12:21] Okay. [00:12:22] With that, the first thing I want to bring up is that this anticipates the city borrowing [00:12:27] under its Covenant to Budget and Appropriate for the CRA borrowing on its own. [00:12:32] That has been a conscious decision that the city has used in the past to preserve flexibility [00:12:37] with the use of the CRA and the use of those projects, because the Covenant to Budget and [00:12:43] Appropriate gives you more flexibility with the ability to use those dollars than you [00:12:48] have under the CRA. [00:12:50] So that I just wanted to bring up front. [00:12:53] The document provided by Duane Draper with BMO discusses the taxable versus tax-exempt [00:12:59] aspect. [00:13:01] Where that really comes into play here is the private use aspect, because this is being [00:13:05] used by – because the agreement is being struck with the developer as opposed to with [00:13:11] a tax-exempt entity or a not-for-profit entity. [00:13:15] You run into private use issues, which would lead for all or a part of this financing to [00:13:21] be done as a tax – on a taxable basis. [00:13:25] Because there's a number of spaces that would be open for city use, there is a portion [00:13:31] that would likely be eligible for tax-exempt financing as well, which would help decrease [00:13:35] the costs there a bit. [00:13:38] The discussion on the 10-year versus 15-year is driven primarily by bank appetite. [00:13:45] When we went through and reached out to a number of banks to try and gauge their appetite [00:13:50] for making loans in this current environment and trying to see exactly how far out they're [00:13:56] willing to go through and lend on this basis, we did so on an anonymous basis. [00:14:02] We didn't want to go through and discuss your project or any of the details here to [00:14:08] provide a little bit of color. [00:14:10] When we went through, the majority of the banks that we reached out to, 10 years seems [00:14:14] to be a pretty conservative number that they'd be willing to go through and lend. [00:14:18] There are a few that, depending on circumstances as whether they are your primary depository, [00:14:24] whether you have existing relationships, may be willing to extend out to a 15-year. [00:14:30] The balance between a 10-year financing and a 15-year financing is really looking at the [00:14:37] total interest cost versus the annual cost, as you see in the amortization breakdown up [00:14:43] there. [00:14:44] While the 15-year amortization has a significantly lower annual cost, the total cost down at [00:14:52] the bottom is higher, and that's because you're paying more interest because the money [00:14:56] is outstanding longer. [00:14:58] That's a tradeoff. [00:15:00] that we can go through and analyze as we move through this a little bit more. [00:15:07] I do want to make sure I mention the fact that the bank appetite for loans right now is [00:15:14] fragile. The market just between COVID and everything happening in the lending space, [00:15:22] it's really a day-by-day basis whether banks are going to be in or out or whether they're [00:15:28] looking to go 10 years or 15 years. And that's something that we're continually going through [00:15:34] and pulling banks. But that is fluctuating. With respect to Mr. Reed's comments, [00:15:43] I think it's important to note that the reason that the city has structured this [00:15:50] as the municipal corporation of the city applying for bond financing is [00:15:58] because we could use the full faith and credit of the city and in all likelihood [00:16:04] as such would yield a better interest rate. We would recommend to you that the CRA [00:16:10] enter into an agreement with the city for the repayment of the bond. And we are very [00:16:19] interested in preserving our tax-exempt status as it relates to the borrowing of funds, so much so [00:16:29] that we have had conversation with the developer who indicated that they would be open to allowing [00:16:37] us to enter into the operations and maintenance agreement with the college rather than with the [00:16:45] developer. The college is a not-for-profit organization, and so that would improve [00:16:50] the likelihood that we could finance the whole project on a tax-exempt basis. [00:16:57] And we're not tonight asking you to make any of those big decisions related to the finance. [00:17:03] That is something that we would come back to you once we [00:17:07] have an opportunity to further analyze and prepare a recommendation for your consideration. [00:17:18] So this slide represents an effort to boil down those giant spreadsheets that are in front of you. [00:17:25] The third column is our projected revenues over the next 10 years, and those are derived from [00:17:31] our anticipated increase in the TIF, both from increasing property values and growth, but also [00:17:37] our redevelopment projects coming online and increasing to the overall TIF. And those are [00:17:42] very conservative, I think, a conservative estimate of our growth. And then the available capital [00:17:47] funds is that's what would be, after all of our grant programs and our overhead and operating and [00:17:53] things we're doing now, available capital funds, you can see that would slowly grow back into the [00:18:00] millions again for other projects or other borrowing and so forth. This is the 10-year, [00:18:06] and this is the 15-year projection. And then I've got a, I'll put them side, the next slide is [00:18:14] actually having them side by side to show you. Actually, the 15-year starts out a little lower

   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

   Request Authority to Release a Request for Proposal in Respect to the Construction of a Parking Structure on a Design-Build Basis

   discussed

   The CRA Board discussed authorizing release of an RFP for a design-build parking structure at Highway 19 and Main Street, with a budget under $6.5 million and minimum 350 spaces (140 committed to Kaiser University). Board members expressed support, emphasizing aesthetic design, landscaping, potential ancillary uses (rental car/golf cart leasing, small retail), and the project's role in spurring redevelopment of the Palm District/west side of the bridge. A motion was being initiated at the end of the excerpt.

   • direction:Staff requested authority to release an RFP for design-build construction of a parking structure at Hwy 19 and Main Street, under $6.5M with at least 350 spaces. (none)

   📍Grand Boulevard and Main Street📍Highway 19 and Main Street🏢Atomac building / Helena's🏢Enterprise🏢Hertz🏢Kaiser University🏢La Hacienda🏢SunTrust👤Director Davis👤Director Murphy👤Director Starkey👤Mr. Kaiser#10-year vs 15-year financing#140 spaces committed to Kaiser#350-space parking deck#Design-build delivery method#Palm District redevelopment#RFP for parking structure

   ▶ Jump to 18:18 in the video

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   [00:18:20] because that first payment is actually larger than the 10-year, but then it quickly becomes, [00:18:26] we have, you know, one and a half million dollars available for capital projects within [00:18:31] two or three years. So we're asking you tonight to authorize the Executive Director to exercise [00:18:39] the option agreement to construct a parking structure on the property located at Highway [00:18:43] 19 and Main Street as submitted. The next agenda item is to ask you to consider [00:19:00] a delivery system for the construction project. The delivery system that we're asking you to [00:19:08] consider is design build. So it may, so we do not have design documents at this point. [00:19:16] What we are indicating so far is that we know that we want it to cost less than six and a half [00:19:26] million, and we know minimally we want it to have 350 parking spaces, and designers will compete [00:19:34] with each other. We'll spec some additional things that we need to have included in the [00:19:44] proposal, because it would be a request for proposal that we would let to design build firms, [00:19:52] and once those come back, then we would present those to you. [00:19:57] Before we get too far in the discussion, I want to ask if we've got any public comments? [00:20:02] I did not receive anything. [00:20:06] Do we have anybody on the phone in that case? [00:20:09] Opened up for discussion. Who would like to kick it off, Pete? [00:20:31] Okay. [00:20:51] But this is a decision based on what we want. [00:21:01] So [00:21:22] four of us, they added one part. [00:21:25] A lifetime cycle of visually accumulating and growing. [00:22:25] I do have a closing pending and it's not reflected in here because the payment goes [00:22:54] back to the Water and Sewer Fund. [00:23:17] Director Starkey, thoughts? [00:23:19] Well, I'm going to just throw a couple things out there. [00:23:24] Overall, I think I am definitely in favor of this project. [00:23:27] I agree with Director Davis that for me, the details are what's going to matter. [00:23:37] I was in New York City three summers ago and we went to a parking garage across the water [00:23:44] in Jersey to rent a car, actually. [00:23:46] And you looked at this parking garage, similar to the ones they put at Disney Springs, which [00:23:52] was formerly Downtown Disney. [00:23:53] And you look at these beautiful structures and you don't, from the outside, you literally [00:23:57] can't tell they're parking garages. [00:23:59] It's pretty amazing how they can design these these days. [00:24:03] I'd like to see some green implemented in the design, whether it be palm trees on the [00:24:08] upper deck, around the building as well. [00:24:17] I think the negative feedback from our constituents may be, why are we building this here rather [00:24:24] than on the other side of the bridge, right? [00:24:26] Because everyone's hanging out on the other side of the bridge. [00:24:29] I would assume from this parking garage to walk to Grand Boulevard and Main Street is [00:24:34] probably less than a quarter of a mile or around a quarter of a mile. [00:24:39] Yeah, so it's really, I mean, people are used to finding spots downtown. [00:24:43] But as we're witnessing, we're creating a downtown district that's really starting to [00:24:49] attract people that want to live here and that want to visit here. [00:24:52] And I've been saying this up here for years. [00:24:55] You have to get used to not, you can't expect to just go to a restaurant downtown and be [00:25:01] able to park right outside that door. [00:25:03] It's not like that anymore. [00:25:04] I mean, you may have to. [00:25:05] We put these big parking signs up, I've noticed, on Boulevard. [00:25:10] They're very informational, but personally, I'm a huge fan of them, just because they're [00:25:15] so big. [00:25:16] But the point being that we've been talking about, I think the city's done a great job [00:25:22] thus far on our downtown district and corridor, as we always talk about on the east side of [00:25:27] the bridge. [00:25:28] This is an opportunity, I think, to modernize the west side of our Main Street district. [00:25:34] And I think by creating such a structure, we can talk to businesses and private investors [00:25:43] in the future that may take notice of this district that we're trying to build and explain [00:25:48] to them, you're going to have options for parking. [00:25:51] You're not going to have to just leave this many spaces per square footage of your building. [00:25:56] We have a huge parking garage right here. [00:25:58] So I think that's a positive thing. [00:26:01] If we can afford it, because we're talking about this tonight, we're talking about possibly [00:26:04] purchasing two other parcels on the river later on in the agenda. [00:26:10] Staff says we can afford this, and we can get a good interest rate. [00:26:12] I would be in favor of, if we can handle that monthly payment, of saving a little over a [00:26:18] half a million dollars with the 10-year. [00:26:20] It sounds like that's what the banks would prefer to do right now. [00:26:22] And a friend of mine is a commercial banker, and everything you said regarding commercial [00:26:27] loans right now is what he has reiterated to me as well. [00:26:31] So overall, I'm in favor of it. [00:26:33] I think it's going to create a great opportunity to, number one, we talk about that area and [00:26:38] how it's just a concrete jungle. [00:26:40] So if we just put this huge parking lot with 240 cars, it's just going to contribute to [00:26:46] that. [00:26:46] If we put a structure up where we can have two stories of parking and do some nice landscaping [00:26:50] around there and open up other space for businesses and other private public partnerships if need [00:26:58] be, it's kind of like we're building it to help with the redevelopment, rather than vice [00:27:06] versa. [00:27:07] We're kind of ahead of the game. [00:27:08] But with Kaiser University going in there, what's the percentages that we're going to [00:27:14] see a nice chain hotel there in the near future? [00:27:17] Are they just going to build Kaiser, and then we'll figure that out after the fact? [00:27:20] Because to me, that has an impact on it as well. [00:27:22] If we're going to build a hotel there and have a park garage right behind it, that's [00:27:25] going to help that hotel out tremendously as well. [00:27:27] I think that there's a high likelihood that the developers will go forward with the construction [00:27:33] of a hotel. [00:27:35] Mr. Kaiser himself is in the business of constructing hotels, has done it in the past, has indicated [00:27:46] an interest in this specific site. [00:27:49] We do not have any agreement, though, in writing that commits them at this point to do that. [00:27:56] We just believe that there's a very high likelihood that it will occur. [00:27:59] Obviously, this would help accommodate their decision to build that hotel there. [00:28:05] Once again, the devil's in the details for me. [00:28:07] You can just say you're going to build a parking garage, but I want to know what it's going [00:28:11] to look like, what the design is, whether or not we're going to have arrows showing [00:28:14] there's seven spots open in this lane like they do at Disney. [00:28:17] What can we afford, and how nice can we make it? [00:28:20] There might even be an opportunity, like I said, I went to a beautiful parking garage [00:28:23] in New Jersey. [00:28:23] They actually had a rental car business running out of the parking garage, and they took up [00:28:28] spots there. [00:28:29] I'm sure they paid lease to the municipality that owned it, so that might be an option [00:28:33] as well before all this new construction starts. [00:28:35] We could maybe look into Enterprise or Hertz or a company like that, see if that's something [00:28:38] that's just a thought, something they may be interested in to generate some revenue [00:28:42] while we're not using all those spots right off the bat. [00:28:45] Overall, I think it's a great project. [00:28:48] I don't think it's – it sounds like we can afford it. [00:28:51] Obviously, I always get a little nervous with these huge, huge investments, but we [00:28:55] really need a spur development from the Bridge to 19, and I think this is really going to [00:28:59] help do that. [00:29:00] Thank you. [00:29:01] Director Murphy. [00:29:02] Yeah, I think it was understood, but I didn't hear anybody mention about the parking garage [00:29:07] as far as the city being able to use it for special events and when, I guess, the county [00:29:11] is not in session and using the spots. [00:29:15] In response to the question, Councilman Murphy raises the remainder of the spaces in the [00:29:23] structure would be open for public use. [00:29:27] At this point, the commitment to Kaiser is for 140 spaces, and our expectation is that [00:29:35] the deck will house 350 spaces. [00:29:39] Okay, so plenty of room, then, to get on. [00:29:42] Very good. [00:29:43] Yeah, I agree with everyone so far. [00:29:45] Details to come before any final, final is made. [00:29:50] But, yeah, I think we have to do this right now. [00:29:56] The opportunity is there right now. [00:30:00] It can make or break any future development in that area. [00:30:03] Not having the parking garage could be doomless later. [00:30:07] I think it's just something we really need to look at and move forward with. [00:30:11] As long as it makes sense monetarily, we can afford it. [00:30:15] I think it's going to be a good project for that area. [00:30:19] Director Davis. [00:30:26] The Kaiser site, not the Rivergate site. [00:30:31] That's not working. He's doing it over there. [00:30:33] Next slide. [00:30:34] Oh, you can point her here. [00:30:39] Next slide. [00:30:42] There. [00:30:43] That one? [00:30:44] No. [00:30:45] This one that we've got here. [00:30:47] This one here. [00:30:48] Oh, next. [00:30:49] Keep going forward. [00:30:50] There. [00:30:52] Microphone. [00:30:53] You need a microphone. [00:30:55] Okay. [00:31:00] What my first thought is, my first thought is that this would be two floors. [00:31:15] We're going to enter here because they're going to be coming out of the parking lot. [00:31:46] I don't know the number. [00:31:51] I'm just saying I don't know the number. [00:31:53] But, you know, some small retail in here. [00:31:55] And then also, just like those from the hotel, you know the type of retail that we would want in here. [00:32:04] Back to the 10 and 15-year thing. [00:32:15] Make this difference here and here to half a million dollars. [00:32:19] You know, that's two of these. [00:32:22] Back to the 10 and 15-year thing. [00:32:31] Make this difference here and here to half a million dollars. [00:32:35] That's two of these. [00:32:56] Thank you. [00:33:00] I think this is a key part of being able to spur the redevelopment in the Palm District. [00:33:13] I can think of several of the properties there that could definitely be in play if there's adequate parking [00:33:25] and they don't have to worry about huge amounts of parking. [00:33:29] The old Atomac building, or Helena's for those of you who haven't been around long enough to remember the lumber yard. [00:33:37] Yeah. [00:33:39] But they've got that huge amount of parking sitting out front and they wouldn't need it in that building. [00:33:47] The buildings to the west of there could well become very attractive for the sort of retail [00:33:57] that I think, Mr. Davis, I think that you're thinking of as well that would cater to the college crowd. [00:34:05] And if parking is not a concern, then it starts to become a lot easier for people to pull the trigger and say, [00:34:15] hey, we want to do this. [00:34:17] And I think that's key to getting that whole area redeveloped. [00:34:22] So I very much think we should go forward. [00:34:25] I do agree we don't want it to be ugly. [00:34:28] That may be part of the discussion on the text about design-build. [00:34:33] But we definitely want the thing to be attractive. [00:34:39] And certainly if there are options for leasing out some portion of it, as Mr. Starkey had suggested, [00:34:52] like a rental car company or the first thought that came to my mind was a golf cart company. [00:34:57] You could come in, park your car, and take a golf cart in to the rest of the city if you wanted. [00:35:03] I mean, there's a lot of options there that some enterprising individual may want to take advantage of. [00:35:11] So it's got lots of possibilities. [00:35:15] And I think it's a good step for us to go ahead and get this done while we can. [00:35:21] Yes, sir. [00:35:22] One other thing that you could comment, maybe you could say, too. [00:35:32] I'm trying to put it in the parking lot, but there's a certain floor. [00:35:37] That's a good point. [00:35:39] Hopefully we'll be addressing some of the parking on this side of the bridge, too. [00:35:43] But that's a good point. [00:35:45] And it is. [00:35:46] It's a four-minute walk from La Hacienda. [00:35:51] Yeah, it really is. [00:35:53] It's a very short walk. [00:35:56] Anything else on this? [00:35:59] Mr. Chairman, I want to make a motion, but I would also like to say [00:36:07] to incorporate the concerns about the ultimate product, that what we've seen is a promise that we would do this. [00:36:15] I would like to say that that is a promise, that that is a minimum standard that we could make agreement with the university. [00:36:22] Because, you know, the property that goes all the way to Main Street there, it could be, again, [00:36:28] that a private developer comes on quickly and says, hey, you're going to do this. [00:36:32] So I would love to see some urban planning and some interaction [00:36:37] and sort of like an active brewing of this concept of us rebuilding the gateway area. [00:36:45] So this would be a commitment. [00:36:48] But how can I make a motion to approve, to agree to do this? [00:36:54] There's always the amendment process, I guess, afterwards. [00:36:59] If another developer came in and said they've got their hotel site, but here's SunTrust over here. [00:37:05] The bank is certainly way bigger than banks need to be. [00:37:10] And they may want some visibility that might cause them to want to relocate. [00:37:15] And there have been some private enterprises that have expressed interest in maybe residential property or other things.

   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

   Review of Budget vs. Actual Summary

   approved

   CRA Finance staff (Mrs. Feist/Crystal) presented a budget vs. actuals report for FY2019-2020 as of April 30, showing $4.85M of $6.46M in revenues received and $3.28M of $6.35M in expenditures, with property assemblage (notably the Walgreens building purchase) being the primary capital activity. The Board approved a budget amendment to add $519,368 from the sale of the business incubator to CRA reserves for future use. Councilman Altman raised questions about administrative cost allocations and the timeliness of property tax transfers from the general fund to the CRA, which the City Manager agreed to verify with the city attorney.

   • motion:Move to approve the budget amendment adding $519,368 from the sale of the business incubator to CRA reserves. (passed)

   🏢Hacienda Hotel🏢Main Street🏢Main Street Landing🏢Walgreens👤Councilman Altman👤Crystal👤Mr. Murphy👤Mrs. Feist#Branding Project#Business Incubator Sale#CRA Budget Amendment#FY2019-2020 CRA Budget#Property Assemblage#Redevelopment Incentives#Tax Increment Financing

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   [00:37:21] So I would love to see us begin to draw that whole block out in a vision, at least, to say this is kind of what we have in mind. [00:37:30] And I think that would make a great excitement, additional excitement. [00:37:35] It may be that whatever that person wants to come in with is a whole nother, obviously would be a whole nother discussion. [00:37:42] But if anything made sense economically for someone else to say, hey, I'm going to do this. [00:37:49] And I want a piece of it. And I've picked up the piece that goes to Main Street. [00:37:54] And I want to put the retail in front, or I want to wrap it around. [00:37:59] Because we're restricted with the site, what you'd like to see in the front. [00:38:03] If you take that retail out of the first floor, as I see the way it's been drawn into that tight space, [00:38:10] then someone might come up with a third deck above. [00:38:15] Someone might come up and say, hey, we need some spaces too. [00:38:20] So I think that it's hard when you go out with an RFP to say, this is my footprint. [00:38:26] This is what I want to build. [00:38:28] But I would love to see the options that you all have mentioned and put something into the RFP to say, [00:38:38] you are allowed to use some creative influence so we can actually see those projects as they're proposed to us. [00:38:48] And there may be some additional economy in a larger deck or whatever. [00:38:53] I think that'll be part of the discussion before the next motion comes up. [00:38:56] But if you'd like to make a motion to authorize this, that would be great. [00:39:01] Second motion and second. Any further discussion? [00:39:05] Yeah, we'll discuss it more. [00:39:07] At this point, we're just approving this motion to move forward with an RFP. [00:39:10] I don't think we need to make it too complicated at this point. [00:39:14] We're just going to put an RFP out, have some companies come in and say, [00:39:17] this is what we vision for this amount of space, create designs, [00:39:21] and then at that point we'll cross that bridge and decide to go with what we're comfortable with. [00:39:25] Actually, this motion is on exercising our option. [00:39:30] Well, I second it, so I'm ready to do it. [00:39:34] If there's no further discussion, all those in favor, please signify by saying aye. [00:39:37] Aye. [00:39:38] Opposed, like sign. [00:39:40] Motion passes. [00:39:41] Next is review of the budget, actual versus budget. [00:39:49] Yes, Mr. Mayor. [00:39:50] We have five months left in the fiscal year, unbelievably. [00:39:55] In that regard, I've asked Mrs. Feist to prepare and present for you a budget versus actuals [00:40:06] so that you know where we are in terms of the implementation of the fiscal year 2019-2020 budget. [00:40:16] Good evening. [00:40:20] I think you're on. [00:40:21] All right. [00:40:24] Just to reiterate what the city manager said, also given the items that are being presented tonight, [00:40:32] management thought that it was a good opportunity to present to you the current state of the CRA. [00:40:37] So we'll do just that. [00:40:44] So the first slide, we'll go over revenues. [00:40:47] And you'll see that the total budgeted revenues for the CRA totaled $6,463,070. [00:40:56] Of that amount, as of April 30th, the CRA has received $4,851,862. [00:41:07] The major revenue drivers for the CRA are the tax increments that it receives from Pasco County, [00:41:13] and that's that first line item. [00:41:16] We've received all of that for the fiscal year, and that came in just a little under what we've budgeted. [00:41:23] But the budgeted amount is an estimate. [00:41:26] We try to get as close as possible to what the county calculates. [00:41:30] We have some interest that's been earned, so we've added that to the actual budget for the CRA, [00:41:38] our actual dollars for the CRA. [00:41:41] That's $230 and $1,240. [00:41:44] Obviously, the interest has been affected by the market over the last few months. [00:41:51] We receive rent, well, we did up until May, for the incubator. [00:41:58] And you'll see that budgeted was $42,000. [00:42:02] The actual amount for that was $29,794. [00:42:08] We've included in the actual for the CRA the first installment for the sale of the hacienda. [00:42:14] Based on criteria and certain requirements that were met, [00:42:17] we were able to recognize that $75,000 in the current fiscal year, so we've done that. [00:42:24] And then we have the sale of the business incubator, which happened actually in March, not May. [00:42:29] And that sold at $519,368. [00:42:35] Included in your agenda packet was a budget amendment, [00:42:37] so that we can include those funds in the CRA's budget. [00:42:42] And I'll go over that at the end of the slide. [00:42:46] We have some other miscellaneous revenue coming in at around $1,400. [00:42:51] We have our transfer from the general fund to the CRA for the city's tax increment owed to the CRA. [00:42:58] We're almost at $1 million of transfers. [00:43:01] We'll continue to transfer that on a monthly basis until we've exhausted the budgeted amount. [00:43:08] The last revenue source for the CRA was the transfer from the water and sewer [00:43:12] to cover the purchase of the Walgreens building at $1,750,000. [00:43:20] Next we have expenditures. [00:43:22] We'll go over personnel costs first. [00:43:25] The personnel for the CRA includes 30% of the city manager's salary [00:43:29] and then the position for marketing specialist. [00:43:32] And then also taxes, health insurance, and other benefits. [00:43:36] In total, we had $111,000 budgeted, and we've used $31,356 so far. [00:43:49] Next we'll move on to operating. [00:43:52] Our operating expenses include 30% of the city attorney contract, some professional services, [00:44:00] ads and marketing costs, Main Street Grant Award, which we extend to them on a quarterly basis, [00:44:08] contractual services, travel and training, data lines, postage, electric, and trash removal. [00:44:15] You'll see that all of the expenditures incurred thus far were still under budget [00:44:23] in all of them except for a couple of line items. [00:44:27] The biggest one is trash removal. [00:44:30] With the purchase of the Walgreens building, we did have to pay some assessment fees to the county, [00:44:36] which did exceed what we had budgeted. [00:44:39] We didn't anticipate having to pay that, but we'll reallocate some money by the end of the year [00:44:46] to make sure that that account is covered for appropriately. [00:44:54] The final list of operating expenses include water and sewer, [00:45:00] Light assessment, stormwater assessment on the CRA properties, insurance, maintenance [00:45:06] and repairs, printing and binding, other charges, office supplies, and dues and memberships. [00:45:12] And you'll see that as of 4-30, we're well under budget for those line items as well. [00:45:22] The capital budget for the CRA totals $4,575,000. [00:45:30] The majority of the time over the fiscal year, the months in the fiscal year, have been dedicated [00:45:39] to property assemblage. [00:45:41] We've purchased Walgreens primarily. [00:45:45] We've also paid out the developer incentive to Main Street Landing and did a little work [00:45:52] on the Hacienda Hotel that we were obligated to do. [00:45:56] So as far as the capital budget goes, you can see that we haven't initiated on a lot [00:46:02] of the projects. [00:46:04] Our focus has been on the property assemblage. [00:46:11] So in total, we've spent $2,757,884. [00:46:16] So we have quite a bit remaining available in our capital budget. [00:46:25] The last bit that's budgeted in the CRA fund include redevelopment incentives, which [00:46:31] are business grants, residential incentives, and then transfers for administrative services [00:46:37] and transfers to cover our debt service obligations for the CRA. [00:46:42] Business grants, as of 4-30, total $93,734. [00:46:49] We've issued a few residential incentive grants at $6,350. [00:46:54] So we do still have funds available. [00:46:57] A lot of that has been obligated, but just not actually issued to grantees at this time. [00:47:04] We have our transfer that's done on a monthly basis to both funds. [00:47:10] So we'll continue to transfer that amount on a monthly basis. [00:47:15] So in total, revenues budgeted $6,463,070. [00:47:21] We've received $4.8 million of that. [00:47:24] So we have a remaining amount we expect of $1,611,208. [00:47:33] Transfers budgeted $6,351,890. [00:47:38] And we've expended $3,278,166 at this point. [00:47:44] So we have about $3 million left budgeted to spend. [00:47:50] That leaves about $1.5 million of revenues over expenditures at this point, as of April [00:47:59] 30th. [00:48:01] And that's what I have. [00:48:03] Do you have any questions? [00:48:05] Crystal, are you also going to introduce the budget amendment? [00:48:11] So the budget amendment that's included in your packet includes an addition to revenue [00:48:17] for the CRA of the $519,368. [00:48:23] And it increases the fund balance, or the reserves for CRA, for that same amount. [00:48:29] And it's the reserves for future use. [00:48:31] So it's not obligated to any project at this point. [00:48:34] But during the budget process, we can obligate those funds at a later date. [00:48:39] Good. [00:48:40] Thank you. [00:48:41] Do we have any comments? [00:48:42] I did not receive any. [00:48:45] Nobody online? [00:48:46] Okay. [00:48:47] So bring it back to the CRA. [00:48:50] Move to approve the budget amendments. [00:48:53] Second. [00:48:54] We have a motion and a second to the maker. [00:48:58] Just to take note that the administrative cost of the CRA of $350,000 does not include [00:49:05] legal, director, and a good bit of other expenses. [00:49:14] So I know it has always been a goal to get as much back money into the cousin who loaned [00:49:24] it all the money, who is on Social Security, so to speak, in personal terms. [00:49:31] Those are the items that our colleagues at the county level and that others look at carefully. [00:49:37] You know, somebody did a study and said 10% of everything done in the city is related [00:49:43] to the redevelopment in some way. [00:49:46] You know, probably reasonable, but it's a number. [00:49:50] That's the number that our critics always look at, so other than that, I do have a question [00:50:01] about the timeliness of the transfer of the city's collected property taxes into it. [00:50:09] I know that you're doing this monthly and then you're pushing it back monthly in terms [00:50:13] of these other costs, but I would like to have some assurances that from a legal standpoint [00:50:19] these escrow dollars can be gradually deposited. [00:50:25] The county gives them all to us all at once and we do it on a budget transfer basis. [00:50:32] Something in the back of my mind tells me that we may ought to look at getting those [00:50:37] funds just transferred over. [00:50:38] Both accounts have plenty of money in them. [00:50:40] It doesn't really mean much other than from an auditor and a county standpoint, but I [00:50:45] want to make sure that we're complying with our requirement to move that money. [00:50:50] Mr. Mayor, if you'll allow me to address Councilman Altman's comments. [00:50:54] The first, related to the percentage that we allocate to support some of the administrative [00:51:02] expenses associated with the administration of the program, he's correct in that we do [00:51:09] appropriate a percentage of the city manager's salary and the city attorney's salary. [00:51:14] We do, though, feel comfortable that the percentage that we are seeking reimbursement [00:51:21] for is an appropriate number, as are the general fund expenditures that we're funding back [00:51:29] through the use of CRA funds. [00:51:34] Do you have some information to look at that? [00:51:37] Yes. [00:51:38] Okay. [00:51:40] In respect to the collected property taxes in my tenure here, we've done it one of two [00:51:45] ways, and there were years where we transferred the whole amount from the county into our [00:51:58] budget in one fell swoop. [00:52:02] Other times we've done it in twelfths so that the accrual was done on a monthly basis. [00:52:08] I have not had a conversation with the city attorney in recent times, though, to verify [00:52:14] that we're not somehow required to transfer all at once, but I'll do that and report back [00:52:20] to you. [00:52:21] Very good. [00:52:22] Thank you. [00:52:23] To the second? [00:52:24] Nothing? [00:52:25] Mr. Murphy? [00:52:26] No, nothing for me. [00:52:29] In that case, the only thing that jumped out at me was that we haven't spent much on marketing, [00:52:34] which in the last couple of months is probably understandable, but as the city starts coming [00:52:41] back to life, I think we probably should get some marketing expenditures out there so people [00:52:48] know that we're here, we're alive. [00:52:50] We're prepared to do so, Mr. Mayor. [00:52:55] Part of the reason that we haven't is we're waiting for the branding project to be completed [00:53:01] so that we've got some specific recommendations on the most effective way to market the city. [00:53:06] And that'll be coming up real soon now. [00:53:08] Yes, it is. [00:53:09] Very good. [00:53:10] Any further discussion? [00:53:11] Hearing none, all those in favor, please signify by saying aye. [00:53:14] Aye. [00:53:15] Opposed? [00:53:16] Like sign. [00:53:17] Motion passes. [00:53:18] Next is review of the budget, actual versus budget. [00:53:25] Yes, Mr. Mayor. [00:53:26] We have five months left in the fiscal year, unbelievably. [00:53:32] And in that regard, I've asked Mrs. Feist to prepare and present for you a budget versus [00:53:41] actuals so that you know where we are in terms of the implementation of the fiscal year 2019-2020 [00:53:50] budget. [00:53:51] Good evening. [00:53:52] I think you're on. [00:53:57] All right. [00:54:00] Just to reiterate what the city manager said, you know, also given the items that are being [00:54:06] presented tonight, management thought that it was a good opportunity to present to you [00:54:11] the current state of the CRA. [00:54:13] So we'll do just that. [00:54:17] So the first slide, we'll go over revenues, and you'll see that the total budgeted revenues [00:54:26] for the CRA totaled $6,463,070. [00:54:33] Of that amount, as of April 30th, the CRA has received $4,851,862. [00:54:43] The major revenue drivers for the CRA are the tax increments that it receives from Pasco [00:54:48] County, and that's that first line item. [00:54:52] And we've received all of that for the fiscal year, and that came in just a little under [00:54:58] what we've budgeted. [00:55:00] But the budgeted amount is an estimate. [00:55:02] We try to get as close as possible to what the county calculates. [00:55:07] We have some interest that's been earned. [00:55:11] So we've added that to the actual budget for the CRA, our actual dollars for the CRA. [00:55:17] That's $230 and $1,240. [00:55:21] Obviously the interest has been affected by the market over the last few months. [00:55:27] We receive rent, well, we did up until May for the incubator, and you'll see that budgeted [00:55:36] was $42,000. [00:55:38] The actual amount for that was $29,794. [00:55:44] We've included in the actual for the CRA the first installment for the sale of the hacienda. [00:55:51] Based on criteria and certain requirements that were met, we were able to recognize that [00:55:55] $75,000 in the current fiscal year, so we've done that. [00:56:01] And then we have the sale of the business incubator, which happened actually in March, [00:56:05] not May. [00:56:06] That sold at $519,368. [00:56:11] Included in your agenda packet was a budget amendment so that we can include those funds [00:56:16] in the CRA's budget, and I'll go over that at the end of the slide. [00:56:22] We have some other miscellaneous revenue coming in at around $1,400. [00:56:27] We have our transfer from the CRA, from the general fund to the CRA for the city's tax [00:56:32] increment owed to the CRA. [00:56:34] We're almost at a million dollars of transfers. [00:56:38] Each will continue to transfer that on a monthly basis until we've exhausted the budgeted amount. [00:56:44] The last revenue source for the CRA was the transfer from the water and sewer to cover [00:56:49] the purchase of the Walgreens building at $1,750,000. [00:56:57] Next we have expenditures. [00:56:59] We'll go over personnel costs first. [00:57:02] The personnel for the CRA includes 30% of the city manager's salary and then the position [00:57:07] for marketing specialist, and then also taxes, health insurance, and other benefits. [00:57:13] In total we had $111,000 budgeted, and we've used $31,356 so far. [00:57:26] Next we'll move on to operating. [00:57:28] Our operating expenses include 30% of the city attorney contract, some professional [00:57:36] services, ads, and marketing costs, Main Street Grant Award, which we extend to them on a [00:57:43] quarterly basis, contractual services, travel and training, data lines, postage, electric, [00:57:50] and trash removal. [00:57:51] You'll see that all of the expenditures incurred thus far were still under budget in all of [00:58:00] them except for a couple of line items. [00:58:03] The biggest one is trash removal. [00:58:06] With the purchase of the Walgreens building, we did have to pay some assessment fees to [00:58:12] the county, which did exceed what we had budgeted. [00:58:15] We didn't anticipate having to pay that, but we'll reallocate some money by the end [00:58:22] of the year to make sure that that account is covered for appropriately. [00:58:27] Next slide. [00:58:30] The final list of operating expenses include water and sewer, street light assessment, [00:58:37] stormwater assessment on the CRA properties, insurance, maintenance and repairs, printing [00:58:44] and binding, other charges, office supplies, and dues and memberships. [00:58:48] You'll see that as of 4-30, we're well under budget for those line items as well. [00:58:58] The capital budget for the CRA totals $4,575,000. [00:59:06] The majority of the time over the fiscal year have been dedicated to property assemblage. [00:59:17] We've purchased Walgreens primarily. [00:59:21] We've also paid out the developer incentive to Main Street Landing and did a little work [00:59:28] on the Hacienda Hotel that we were obligated to do. [00:59:32] As far as the capital budget goes, you can see that we haven't initiated on a lot of [00:59:38] the projects. [00:59:40] Our focus has been on the property assemblage. [00:59:48] In total, we've spent $2,757,884, so we have quite a bit remaining available in our capital [00:59:55] budget. [01:00:00] The last bit that's budgeted in the CRA fund include redevelopment incentives, which are [01:00:07] business grants, residential incentives, and then transfers for administrative services [01:00:13] and transfers to cover our debt service obligations for the CRA. [01:00:18] Business grants, as of 4-30, total $93,734. [01:00:25] We've issued a few residential incentive grants at $6,350. [01:00:30] So we do still have funds available. [01:00:33] A lot of that has been obligated, but just not actually issued to grantees at this time. [01:00:40] We have our transfer that's done on a monthly basis to both funds. [01:00:46] So we'll continue to transfer that amount on a monthly basis. [01:00:51] So in total, revenues budgeted $6,463,070. [01:00:57] We've received $4.8 million of that. [01:01:00] So we have a remaining amount we expect of $1,611,208. [01:01:09] Expenditures budgeted $6,351,890, and we've expended $3,278,166 at this point. [01:01:20] So we have about $3 million left budgeted to spend. [01:01:26] That leaves about $1.5 million of revenues over expenditures at this point, as of April [01:01:35] 30th. [01:01:36] And that's what I have. [01:01:39] Do you have any questions? [01:01:42] Crystal, are you also going to introduce the budget amendment? [01:01:47] So the budget amendment that's included in your packet includes an addition to revenue [01:01:53] for the CRA of the $519,368, and it increases the fund balance, or the reserves for CRA, [01:02:03] for that same amount. [01:02:05] And it's the reserves for future use. [01:02:07] So it's not obligated to any project at this point, but during the budget process we can [01:02:12] obligate those funds at a later date. [01:02:15] Good. [01:02:16] Thank you. [01:02:17] Any questions? [01:02:19] I did not receive any. [01:02:21] Nobody online? [01:02:22] Okay, so bring it back to the CRA. [01:02:25] Move to approve the budget amendments. [01:02:28] Second. [01:02:29] We have a motion and a second to the maker. [01:02:32] Just to take note that the administrative cost of the CRA of $350,000 does not include [01:02:41] legal, director, and a good bit of other expenses. [01:02:50] So I know it has always been a goal to get as much back money into the cousin who loaned [01:03:00] it all the money, who is on Social Security, so to speak, in personal terms. [01:03:08] Those are the items that our colleagues at the county level and that others look at carefully. [01:03:15] You know, somebody did a study and said 10% of everything done in the city is related [01:03:19] to the redevelopment in some way. [01:03:22] You know, probably reasonable, but it's a number. [01:03:26] That's the number that our critics always look at. [01:03:32] Other than that, I do have a question about the timeliness of the transfer of the city's [01:03:42] collected property taxes into it. [01:03:45] I know that you're doing this monthly and then you're pushing it back monthly in terms [01:03:49] of these other costs, but I would like to have some assurances that from a legal standpoint [01:03:55] these escrow dollars can be gradually deposited. [01:04:01] The county gives them all to us all at once and we do it on a budget transfer basis. [01:04:07] Something in the back of my mind tells me that we may ought to look at getting those [01:04:12] funds just transferred over. [01:04:14] Both accounts have plenty of money in them. [01:04:16] It doesn't really mean much other than from an auditor and a county standpoint, but I [01:04:20] want to make sure that we're complying with our requirement to move that money. [01:04:25] Mr. Mayor, if you'll allow me to address Councilman Altman's comments. [01:04:30] The first related to the percentage that we allocate to support some of the administrative [01:04:37] expenses associated with the administration of the program. [01:04:42] He's correct in that we do appropriate a percentage of the city manager's salary and the city [01:04:48] attorney's salary. [01:04:50] We do, though, feel comfortable that the percentage that we are seeking reimbursement for is an

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6. 6

   ↳You arrived here from a search for “Congress Street” — transcript expanded below

   Trails Feasibility Study Task Order

   approved

   The CRA Board approved a task order with S&ME Incorporated for a Trails Feasibility Study, not to exceed $20,800. The study, recommended in the 2017 Parks Master Plan, will identify gaps in trail infrastructure, opportunities for connections to the regional/community trail system, prioritization, and order-of-magnitude construction cost estimates.

   • motion:Approve the task order from S&ME Incorporated for the Trails Feasibility Study in an amount not to exceed $20,800. (passed)

   📍Congress Street📍Plath Road (west side)🏢S&ME Incorporated👤Chris Borenfleth👤Mr. Murphy👤Mr. Stark#Coast-to-Coast Trail#Great Preserve trail#MPO (Metropolitan Planning Organization)#Parks Master Plan (2017)#Trails Feasibility Study#US-19 bridge underpass

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   [01:04:57] appropriate number, as are the general fund expenditures that we're funding back through [01:05:05] the use of CRA funds. [01:05:11] In respect to the collected property taxes in my tenure here, we've done it one of two [01:05:21] ways. [01:05:23] There were years where we transferred the whole amount from the county into our budget [01:05:36] in one fell swoop. [01:05:38] Other times we've done it in twelfths so that the accrual was done on a monthly basis. [01:05:44] I have not had a conversation with the city attorney in recent times, though, to verify [01:05:50] that we're not somehow required to transfer all at once, but I'll do that and report back [01:05:56] to you. [01:05:57] Very good. [01:05:58] Thank you. [01:05:59] To the second? [01:06:00] Nothing? [01:06:01] Mr. Murphy? [01:06:02] No, nothing for me. [01:06:05] In that case, the only thing that jumped out at me was that we haven't spent much on marketing, [01:06:10] which in the last couple of months is probably understandable, but as the city starts coming [01:06:17] back to life, I think we probably should get some marketing expenditures out there so people [01:06:24] know that we're here, we're alive. [01:06:27] We're prepared to do so, Mr. Mayor, and part of the reason that we haven't is we're waiting [01:06:33] for the branding project to be completed so that we've got some specific recommendations [01:06:39] on the most effective way to market the city. [01:06:42] And that'll be coming up real soon. [01:06:43] Yes, it is. [01:06:44] Very good. [01:06:45] Any further discussion? [01:06:46] Hearing none, all those in favor, please signify by saying aye. [01:06:49] Aye. [01:06:50] Opposed? [01:06:51] Like sign. [01:06:52] Motion passes. [01:06:53] Next is the Trails Feasibility Study. [01:06:55] And Mr. Borenfleth is prepared to present this item to you this evening. [01:07:00] We are asking to enter into an agreement with SM&E, who is the firm that conducted our Recreation [01:07:08] Master Plan. [01:07:09] Go ahead, Chris. [01:07:10] So the request before the CRA is to review the attached task order for a Trails Feasibility [01:07:15] Study to be conducted by S&ME Incorporated. [01:07:19] SM&E Incorporated submitted a proposal to conduct a Trails Feasibility Study. [01:07:26] The study follows a recommendation included in the Parks Master Plan that was completed [01:07:30] in 2017. [01:07:31] The study will identify gaps in the current and proposed trail infrastructure for the [01:07:36] city, both within the city and as the trail system connects to adjacent portions of the [01:07:43] community trail system. [01:07:44] In addition to the identification of opportunities for connections, they will develop an order [01:07:50] of magnitude opinion of probable construction costs. [01:07:55] A recommendation, the recommendation before the CRA is to approve the task order from [01:08:00] S&ME Incorporated for the Trails Feasibility Study in the amount not to exceed $20,800. [01:08:12] That I can't tell you, but I can definitely look into it. [01:08:15] We're planning on wrapping up before the end of the fiscal year. [01:08:19] We can't tell you that. [01:08:22] And the other component of the project that I'd like to add is that they'll be helping [01:08:26] us to prioritize the project so that we know in what order we should implement them as [01:08:31] funding becomes available. [01:08:34] Chris was getting a message from the peanut gallery. [01:08:37] I think that was three months. [01:08:39] Yes. [01:08:40] Okay. [01:08:43] Do we have any public comment? [01:08:46] Phone calls? [01:08:47] We do not receive anything. [01:08:48] In that case, move approval to the maker. [01:08:52] I've been looking forward to this and I think it's critical for us to be able to try to [01:08:56] connect ourselves to that coast-to-coast trail eventually. [01:08:59] Discussions years ago with DOT about getting in on the coast-to-coast trail map started [01:09:07] with the need for this and I'm excited to see that they're doing it. [01:09:13] I would also ask that, I'm assuming that the trail that we are anticipating to happen on [01:09:19] the Great Preserve, that's going to take that Congress Street out to the Great Preserve? [01:09:23] Yes. [01:09:25] I've always thought that would be a good way out at some point from a nature standpoint [01:09:30] for people in town and I don't know, there's no landing site for that on the other side, [01:09:37] but through the woods, that west side of Plath Road always looks like it's all vacant and [01:09:44] ready for some nice long trail out there to get to Little at some point. [01:09:48] I know we've done a lot of work to get to Massachusetts and that's more of a bicycle [01:09:52] route, but I'll be very interested to see the results of that. [01:09:57] Very good. [01:09:58] To the second? [01:09:59] Yeah, it's real important to get out and make sure... [01:10:25] Mr. Murphy? [01:10:26] It's an important part to our city's redevelopment, so I'm looking forward to seeing what they [01:10:31] come up with. [01:10:32] Mr. Stark? [01:10:33] I am as well. [01:10:34] Once it's completed, can we please send a copy to all the MPO staff, the head staff [01:10:38] at the county, along with the MPO board members, because I can't stress to you guys enough [01:10:43] how long that list is for projects right now. [01:10:45] We're constantly fighting for West Pasco projects and if you look at a heat map, East Pasco [01:10:50] is just burning up and we battle and battle and battle. [01:10:53] We all get along well on the MPO board, but it is a battle. [01:10:56] I mean, it's just the underpass at the US-19 bridge to me is pretty darn simple and we [01:11:01] just, for some reason, just made it way, way too complicated. [01:11:05] So the earliest we get the study to the board members and staff at the MPO, the county MPO, [01:11:11] then they know that we're taking the positive steps to move forward within our city limits [01:11:17] to tie these trails together, but it's county trails as well. [01:11:21] Just because it's in the city limits doesn't mean, in my opinion, that we need to be foot [01:11:24] in the door for all this. [01:11:25] Yeah, I think it's very important that we get the stuff inside the city limits completed [01:11:29] and then we can go to the MPO and to the tourist folks and everybody and say, [01:11:35] all right, here's what we've got. [01:11:37] Let's fill in the holes in the county to tie everything together. [01:11:41] So I think it's really important we get this done. [01:11:45] Further discussion? [01:11:47] Hearing none, all those in favor, please signify by saying aye. [01:11:51] Opposed, like sign.

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7. 7

   Request to Pursue Property Acquisition RE: 6356 & 6348 River Road and 5432 Acorn Street

   approved

   Staff presented a proposal to acquire three parcels (two on River Road north of Main Street and one on Acorn Street south of Main Street) to expand the city boat ramp, parking, and add kayak/paddle access. Initial offers based on appraisals were rejected by the two northern property owners. The board authorized the city manager to continue negotiations on all three properties, with discussion of seeking Pasco County and grant funding given heavy non-resident use of the ramp.

   • motion:Authorize the city manager to continue to negotiate for the three parcels (6356 and 6348 River Road and 5432 Acorn Street). (passed)

   📍5432 Acorn Street📍6348 River Road📍6356 River Road🏢Anclote Village Marina🏢Duke🏢Main Street Landings🏢River's Edge Pediatrics🏢Sam's Beach Club👤Charles👤Dana Gaydos👤Earl👤George Stacy👤Mr. Davis👤Mr. Elman👤Mr. Murphy👤Mr. Rudd👤Mr. Starkey👤Ms. Vance#2019 Redevelopment Plan Section 7#Anclote Park boat ramp expansion#Pithlachascotee (Port Richey) Park boat ramp#State grant up to $200,000 for boat access improvements

   ▶ Jump to 1:11:53 in the video

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   [01:11:53] Motion passes. [01:11:55] Next is a request to pursue property acquisition of two parcels on River Road [01:12:04] and one on Acorn Street. [01:12:06] Yes, sir, Mr. Mayor. [01:12:07] Mr. Rudd has a presentation for you in regard to the three properties that are currently [01:12:16] available and we'll let you start off, Mr. Rudd. [01:12:20] Thank you. [01:12:21] As you recall in the 2019 redevelopment plan in Section 7 under strategies, [01:12:25] there is reference under various proposed future projects to the city-owned boat ramp [01:12:30] and parking and concerning redesign and efficiency of mixed uses. [01:12:34] So as well as conversations we've had, as you know, over the months on acquiring property [01:12:39] in that area. [01:12:40] So this is an overhead view of the city facility. [01:12:46] The boat ramp and the building there, the site is 1.37 acres zoned government. [01:12:54] And the properties, there we go. [01:12:59] This is 6356 River Road. [01:13:02] It's 0.61 acres. [01:13:05] Currently actually has split zoning R2 on the north and office on the south. [01:13:11] And this is an overhead view. [01:13:13] This is a bird's eye view from the Sims Park side. [01:13:20] The property is a vacant piece of property. [01:13:22] Next slide. [01:13:24] Next to that, immediately adjacent to the boat ramp, also 0.61 acres zoned office [01:13:30] is River's Edge Pediatrics. [01:13:33] Next slide, please. [01:13:35] And this is the view again from across the park. [01:13:38] Next slide. [01:13:40] And then on the other side of Main Street Landing, this parcel, 0.27 acres is zoned R2. [01:13:47] It's actually 5432 Acorn Street. [01:13:51] Next slide is kind of the bird's eye view. [01:13:54] Again, this is an old aerial of the site, Main Street Landing site. [01:13:58] And then next slide. [01:13:59] These are the three parcels together that we've been looking at. [01:14:03] We did order appraisals for all three properties. [01:14:07] There's a copy of those, a summary of that in your packet. [01:14:10] And on the two to the north there, we did, actually all three, we provided copies to the owners. [01:14:16] And the two properties to the north, we indicated that as an offer, initial offer, which was rejected. [01:14:23] And so the next slide, please. [01:14:25] What we're asking tonight is to provide us with direction as to whether or not to continue to pursue those, [01:14:30] the purchase of those properties for this project. [01:14:34] I think that we should note additionally that [01:14:37] the two pieces of property that are located north of Main Street [01:14:43] are contemplated in large part as an expansion of the boat ramp property [01:14:51] and potentially the redevelopment of the building that currently is. [01:15:00] on the property. The parcel that is located south of Main Street is very [01:15:08] well suited for use by paddle boaters and kayakers. There's some discussion [01:15:19] that potentially a boat ramp could fit into that property and there are some [01:15:26] grant opportunities that would be helpful in terms of implementing that if [01:15:32] it were determined to be a project of interest to you. Very good. Do we have any [01:15:38] comments from the public? I did receive an email comment from George Stacy who [01:15:45] wrote that we just moved downtown on the river at Main Street landings from Gulf [01:15:50] Harbors. We really love it. Walking to everything, even work. But one thing we [01:15:55] are not able to do is use our boat very easily. The ramp on Main Street is very [01:16:00] much overcrowded on weekends and limited parking and no place for the boat to be [01:16:05] docked and easily used. If the city had more property to store and launch boats [01:16:09] it would attract more and more residents that really want to live downtown and be [01:16:14] a part of this wonderful growth. I know the city is really trying to grow in the [01:16:18] right way. Adding locations for boats and storing and launching is the next big [01:16:24] thing and I believe a great step in attracting new residents for downtown. [01:16:28] Anybody on the phone? No. In that case, I'm going to bring it back. I will kick [01:16:36] off that it was I think Saturday night I actually emailed Ms. Vance a picture. [01:16:46] There were empty boat trailers that stretched from the entrance to the boat [01:16:52] launch area all the way back out to Main Street. There were literally seven [01:17:00] or eight truck-trailer combinations totally clocking up traffic. It was [01:17:07] people trying to get in and out to do boat launches and that to me drove home [01:17:12] the critical need we have for more trailer parking immediately adjacent to [01:17:19] that ramp. I'm surprised it wasn't blocking traffic on Main Street [01:17:25] without new vehicles. Mr. Starkey? Referencing the comment from the [01:17:31] email from the public there, I'd love to see Main Street landings. I said this [01:17:35] when we first re-engaged, put boat slips with boat lifts out back and people will [01:17:41] rent them. I know a ton of people that would move there if they could rent a [01:17:45] boat slip out back. I would love to see that developer proceed with that. I know [01:17:48] it's a weird time financially with our economy right now in the U.S., but it [01:17:54] just reiterates someone moved here from Gulf Harbors, got their boat on their [01:17:56] trailer, they would love to have it out back. They wouldn't have to worry [01:17:59] about the boat ramp. I'm in favor of all three parcels, primarily the two to the [01:18:07] north. It's all going to come down to design. However, I'm going to hit you up for [01:18:13] tourism dollars here, Mr. Davis, and anywhere else we can get money past [01:18:18] Pasco County, I'm a boater, I grew up on the water here, does not have enough [01:18:24] access to boaters with boats on trailers. They just don't. We have a huge complex [01:18:29] at Antelope Park that they're purchasing land from Duke, I believe, and expanding [01:18:34] that boat ramp. I can tell you a huge number of people that use that ramp are [01:18:38] not county residents. The next parcel to the south of that park, Antelope Village [01:18:44] Marina, half the marina's in Pasco, the north side, the south side's in Pinellas. [01:18:48] I would venture to say the majority of people use that boat ramp are not Pasco [01:18:52] County residents. We, just like I get on my soapbox about not having enough [01:18:59] district parks to serve our youth and whatnot, this is another huge aspect of [01:19:05] what the county needs, in my opinion, needs to be working on. They have, other [01:19:09] than the, let's call it the Pinellas-Pasco boat ramp at Antelope, Porgachee, way [01:19:15] overcrowded, that's a city ramp, our ramp, way overcrowded, and a tiny, tiny, tiny [01:19:20] little ramp in Hudson. That is it for our entire coastline. That is not good enough. [01:19:26] This is a huge project if we do it right. I personally love the thought of people [01:19:31] driving over the bridge. I love seeing the boats. I love seeing the boats. It reminds [01:19:35] me we're in a waterfront community. I love it, but it's overcrowded right now. [01:19:38] But why, I'm in favor of it, in favor of doing the appraisals, but why should we as [01:19:42] a municipality put the entire bill for something that is much, much needed on a [01:19:47] countywide basis? If we're checking driver's license at our boat ramp, the [01:19:52] majority of those folks, in my opinion, are not city residents either, and that's [01:19:56] fine, but we need some help, right? I'm okay buying those two parcels, doing a [01:20:00] great design, maybe putting some other slips on the north side, come in, drop [01:20:03] your boat, have a nice way to go in and out and park, but this is one of the [01:20:10] biggest downfalls I think we have as a waterfront community in our county, is no [01:20:15] space for people to access and launch, or to launch their boats to the water. The [01:20:20] county knows it. This should be a huge project, but I just don't think we should [01:20:25] have to put this bill by ourselves. I've talked to county [01:20:29] commissioners, not regarding this project, but they're all in [01:20:32] agreeance. We don't have enough access to the Gulf of Mexico for [01:20:36] voters, period. End of discussion, we have a very sensitive estuary shoreline [01:20:41] between all the creeks and mangroves that run up and down our coast, so you kind of [01:20:45] have to do it at rivers. We have Anclote, the Pitlow-Chascote, and a little area [01:20:49] behind Sam's Beach Club in Hudson. That's our only access points, so I think we [01:20:53] need to be looking to build a huge boat ramp on the New Port Richey Park as well, [01:20:56] and expanding our park, but I think the county, I think we need to engage the [01:21:00] county and get some help on this one. I really do. Excellent points. Mr. Elman. [01:21:04] Yeah, I remembered the time we had the request from the owner on the south side [01:21:10] for us to acquire that, but they were A, not here, and B, didn't ask for a [01:21:15] specific use, because we looked at it, and I remember the comment from Director [01:21:20] Starkey that a little shop or something would be nice in conjunction with [01:21:26] it. I kind of took his idea and talked to some folks I know who have made [01:21:34] applications for grants. In fact, the individual, Dana Gaydos, who does some [01:21:39] work for the city, had previously been involved with the city and made an [01:21:43] application for money from the state. We failed to get up to $200,000 [01:21:50] from them because we didn't add an extra boat access, so effectively a little [01:21:55] ramp for the smaller boats to keep out of the way of the bigger ones on the [01:21:59] south side opened us up for a $200,000 for some of the improvements on the [01:22:05] other side. So it all got me excited, and then when our little visioning thing [01:22:10] happened a few weeks ago, and they just keep going back to the river, the river, [01:22:13] the river, and the folks that are moving into the complex, as Mr. Stacy, who [01:22:20] incidentally is the owner of our old post office, who just put that money back [01:22:27] in, his boat is too big to moor there anyhow. But in addition, we had a [01:22:35] gentleman who was interested in some workforce housing, but he was also saying [01:22:40] that this is a fellow who's a regional manager of a large housing company, and [01:22:48] he met with the staff, I think Earl and Charles were there, but his comment was [01:22:54] for us to get the folks we want with the money in their pockets who want to live [01:22:58] here, they want to have access to the water, and he was recommending that he [01:23:03] was interested in himself, personally, trying to recruit someone to do a little [01:23:09] bit of some kind of, and I don't know that would fit there, they might have to [01:23:12] buy other land, but some sort of a little dry docking place where a person could [01:23:16] actually store their boat, wouldn't have to have their trailer in a spot. So [01:23:19] there's a lot of opportunity, I think, and I look at the financials that have [01:23:26] been presented, and I see that there are some substantial funds left at [01:23:33] the end of the year. If there's a time for us to buy anything, it would be the [01:23:37] time to buy some waterfront across from our park and open that up to see what [01:23:42] creative, again, another creative planning exercise could really make [01:23:47] some interesting, exciting, continue the excitement. So I'm for an approval to [01:23:53] send her, and again, we don't want to talk cost because she has to negotiate, but [01:23:58] you don't buy a waterfront now without paying a premium for that, and I know [01:24:04] that that's probably one of the problems that can be solved through the CRA, [01:24:09] because we're not necessarily tied, I think, to the appraisals, because [01:24:17] nobody's willing to sell for that price, but the city manager, and so I think the [01:24:22] director of our CRA is pretty closely related to her, is a great negotiator, [01:24:27] and I stay out of all that, even trying to accomplish, because you've done a [01:24:33] great job with what you did with Kaiser and so far, so I trust that we could get [01:24:40] a good recommendation, I wouldn't... [01:24:45] Mr. Davis? [01:25:04] Mr. Murphy? Definitely need these parcels. I'm in 100% agreement with [01:25:12] Director Starkey about the county, if they're able to help us, I just don't [01:25:16] know how, what kind of timetable and, you know, how long that would push things out [01:25:20] and get them to agree. I would say, you know, 50% or more probably people don't [01:25:25] even live in the city. I mean, it's definitely something they should help [01:25:29] out with, so I don't know if it's something that we can move forward and [01:25:32] get agreement with them saying, we'll reimburse you for something, or [01:25:34] something like that. I don't know how that would work, but at the same time, we don't [01:25:39] want to, you know, opportunity lost and push it out where we may lose the [01:25:43] properties and not be able to even have access to them, so. I've not seen Mr. [01:25:50] Stacy's boat, but I've seen the trailer, and if the boat matches the trailer, that [01:25:54] thing is huge. It's not going to be in, probably be stored in town. He's got it [01:25:57] at the Marine Out, he's taking it to the Marine Out by the mouth of the river. [01:26:02] I make a motion to authorize the city manager to continue to negotiate for [01:26:08] those three portions. I'll second. We have a motion, multiple seconds, any further [01:26:13] discussion? Hearing none, all those in favor, please signify by saying aye. Aye. [01:26:17] Opposed, like sign. Motion passes. Communications, Ms. Mance? I have nothing

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8. 8Communications▶ 1:26:20
9. 9Adjournment