On the agenda

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

   Approval of December 21, 2021 CRA Meeting Minutes

   approved

   The CRA Board approved the minutes from the December 21, 2021 meeting by unanimous voice vote.

   • motion:Approve the December 21, 2021 CRA meeting minutes. (passed)

   #December 21, 2021 CRA Meeting Minutes

   ▶ Jump to 0:16 in the video

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   [00:00:16] First item on the agenda is the approval of the December 21st [00:00:20] meeting minutes. [00:00:21] Move for approval. [00:00:22] Second. [00:00:23] Any discussion? [00:00:25] Hearing none, all those in favor, [00:00:26] please signify by saying aye. [00:00:28] Aye. [00:00:29] Opposed, like sign.

   This text was generated automatically from the meeting video. It is not a verbatim or official record. For exact wording, consult the video or the city clerk.

3. 3

   Request for Waiver of Penalty Fees from Pasco County

   approved

   The CRA Board considered a request from Pasco County to waive $121,334.47 in penalty fees and 1% monthly interest associated with a roughly one-month-late payment of FY2022 CRA funds. Staff recommended waiving the fees citing the county's partnership with the city, and the board approved the waiver.

   • motion:Motion to approve waiver of the 5% penalty fee and 1% monthly interest ($121,334.47) on Pasco County's late FY2022 CRA payment. (passed)

   🏢Pasco County🏢West Pasco Press Building👤Davis👤Ms. Mams👤Murphy👤Peters#FY2022 CRA funds#Port Richey CRA audit#Tax Increment Financing base year calculation

   ▶ Jump to 0:32 in the video

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   [00:00:32] Next is a request for a waiver of penalty fees [00:00:35] from Pasco County. [00:00:37] Ms. Mams. [00:00:38] Yes. [00:00:38] Earlier this year, I received a letter [00:00:40] from the county administrator in which [00:00:43] he asked that the city's CRA board waive [00:00:46] the penalty fees and interest associated [00:00:49] with a delayed payment of fiscal year 2022 CRA funds. [00:00:56] The Florida statute requires that a 5% penalty [00:01:00] fee with an additional 1% interest [00:01:03] fee for every month that a payment is late be paid. [00:01:10] That calculated, in this instance, to $121,334.47 [00:01:20] for a payment that was late just about a month. [00:01:28] And in review of the matter, CRA districts [00:01:35] may waive the fees if they choose to do so, [00:01:39] in the case of an oversight. [00:01:41] And they respectfully requested that we [00:01:45] agree to waive the fee in respect to the fact [00:01:50] that Pasco County has been a good partner to the city [00:01:54] in many respects, and that this is not [00:01:58] a common occurrence by them. [00:02:01] I'm recommending to you that you consider [00:02:04] waiving the penalty of the fee and the additional interest [00:02:09] of 1%. [00:02:10] Thank you. [00:02:11] We'll open up for public comment. [00:02:13] Seeing no one come before it, I'll [00:02:15] bring it back to the board. [00:02:16] Move forward. [00:02:17] Move to approve. [00:02:19] Thank you. [00:02:20] To the mayor? [00:02:21] Yes, I mean, the fact is, I think even the city perhaps [00:02:27] didn't always put all the funds over according [00:02:29] to when we should have. [00:02:30] So it's good for the goose. [00:02:33] However, I would say that one of the things I heard from the New Port Richey audit was that the county had not properly [00:02:43] calculated an expansion. [00:02:45] And the collection of the payment of tax increment [00:02:55] before the expansion of New Port Richey, [00:03:02] the base year was not included from the original base year. [00:03:05] In our city, the same thing occurred [00:03:07] when we did the CRA back in the early days, [00:03:12] when the year 2000 came and it went more citywide. [00:03:17] The county calculated the base year for our downtown [00:03:22] as of the year 2000, not the old year. [00:03:24] So there are probably hundreds of thousands of dollars [00:03:27] as well that we did not collect and could have made a claim for. [00:03:35] But in the spirit of cooperation and because they [00:03:39] hold so many other funds and support us [00:03:44] in so many other ways, and we're transferring property, [00:03:47] and hopeful that they'll continue to look favorably, [00:03:49] particularly on the West Pasco Press Building, which [00:03:52] I hope we can obtain for parking, [00:03:58] I think it's no problem. [00:04:01] So I'm hopeful. [00:04:03] Thank you. [00:04:04] Mr. Murphy? [00:04:05] No, nothing further. [00:04:08] Mr. Davis? [00:04:08] Treat family right. [00:04:11] Mr. Peters? [00:04:13] We didn't incur any hardship or any expense [00:04:16] because of late payments, so I don't think we should do that. [00:04:21] I see no reason to hold their feet to the fire on this. [00:04:24] I think it was probably just an honest mistake. [00:04:28] There's no further discussion. [00:04:30] All those in favor, please signify by saying aye. [00:04:32] Aye. [00:04:33] Opposed, like sign.

   This text was generated automatically from the meeting video. It is not a verbatim or official record. For exact wording, consult the video or the city clerk.

4. 4

   ↳You arrived here from a search for “6206 US Highway 19” — transcript expanded below

   Commercial Real Estate Redevelopment Grant Agreement w/New Port Richey Hotel Group LLC

   approved

   The CRA approved a $250,000 commercial real estate redevelopment grant to New Port Richey Hotel Group LLC for construction of an 89-room Comfort Inn and Suites hotel at 6206 US Highway 19. The project, valued at approximately $13 million on 1.29 acres, requires $2.5 million in expenditures to be eligible and is targeted for completion by spring 2023. Discussion also touched on a related condo/Spring Hill Suites by Marriott project with 48 two-bedroom condos.

   • motion:Approve the $250,000 commercial real estate redevelopment grant agreement with New Port Richey Hotel Group LLC. (passed)

   📍6206 US Highway 19🏢Choice Hotels🏢Comfort Inn and Suites🏢Flagship Bank🏢Kaiser University🏢New Port Richey Hotel Group LLC🏢Spring Hill Suites by Marriott👤Eric Simone👤Mr. Altman👤Mr. Peters👤Ms. Manns👤Paul Simone#$800,000 state grant for area redevelopment#Commercial Real Estate Redevelopment Grant#Development Review Committee meeting#Hacienda project

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   [00:04:35] Next is a commercial agreement regarding redevelopment grant [00:04:38] application agreement with New Port Richey Hotel Group. [00:04:42] Ms. Manns? [00:04:43] Certainly, Mr. Mayor, members of the CRA. [00:04:47] The agenda item before you this evening [00:04:52] is a request for a grant in the amount of $250,000 [00:05:01] for the New Port Richey Hotel Group LLC, which [00:05:06] is represented this evening by Eric and Paul [00:05:10] Simone in relationship to the establishment of an 89 room [00:05:17] limited service hotel, which will be branded [00:05:22] with the name of a Comfort Inn and Suites [00:05:24] Hotel, which is a franchise hotel of Choice Hotels, [00:05:32] and of which they have entered into a 20 year franchise [00:05:38] agreement. [00:05:39] The hotel will be located on 1.29 acres of property [00:05:45] on US Highway 19, located just south of Kaiser University [00:05:53] at 6206 US Highway 19. [00:05:58] The property was purchased by the Simone family [00:06:04] in September of 2021 for $1,250,000 [00:06:11] for the purposes of establishing the branded hotel. [00:06:15] At the time, the property value was considered to be lower. [00:06:28] It was actually considered to be 4.69 per square foot [00:06:32] with the vacant commercial property. [00:06:35] The base land valuation that's now [00:06:37] been assigned to the property is 7.50. [00:06:40] I've provided to you a revenue projection [00:06:43] for the proposed 89 room hotel with a very modest valuation [00:06:50] growth rate of 3% for the project. [00:06:55] And as you can see, the tax increment revenues [00:07:00] over a 10 year period of time aggregate [00:07:05] in the amount of $1,129,564. [00:07:12] Over a 20 year period of time, $2,661,473. [00:07:24] The project has been appraised to contain a value of $13 [00:07:30] million, $100 at its conclusion. [00:07:35] The Simone family today was installing footings [00:07:42] on the project. [00:07:44] They will complete the construction [00:07:48] by the spring of 2023 as I understand it from them. [00:07:54] The incentive that we are offering them for the project [00:08:02] is more than fair in lieu of the amount of investment [00:08:07] that they have made in the project, [00:08:10] both in terms of their cash and the loan that [00:08:15] will need to be made for construction [00:08:19] to bring it to fruition. [00:08:21] The terms of the grant are that they [00:08:27] will need to expend $2,500,000 to be eligible for the grant [00:08:34] payment. [00:08:35] And our grant payment is secured by Flagship Bank, who [00:08:40] is the bank that they've gone to for their construction [00:08:43] loan in the form of retainage. [00:08:46] With that, we're recommending that you approve the grant. [00:08:49] Thank you. [00:08:50] Open it up for public comment. [00:08:53] Seeing no one coming forward, I'll bring it back to the group [00:08:57] for approval. [00:08:58] Second. [00:08:59] The maker? [00:09:00] No, I mean, it's exciting to see some new growth [00:09:04] from that corner. [00:09:05] It also happens to be in that same large block area [00:09:10] where we received the $800,000 grant from the state [00:09:14] to do some additional work. [00:09:15] And I know we had some talk about whether to put that [00:09:18] in or not. [00:09:18] So hopefully, with the quality of what's happening, [00:09:21] we can attract some really exciting and interesting [00:09:24] project on the rest of that whole. [00:09:27] Thank you, section of the street. [00:09:28] To the second. [00:09:29] Do you have roughly an idea of how long [00:09:31] it will be until we can get the information from them [00:09:35] on the $1.2 million where we can give them the quarter million? [00:09:39] I mean, how long is that? [00:09:41] They're very close already. [00:09:43] Yeah, that's what I would say. [00:09:45] You're talking about a $13 million project. [00:09:47] It must be real close anyhow. [00:09:48] OK, that's what I'm saying. [00:09:49] Because of all the materials that are coming. [00:09:50] Correct, correct. [00:09:51] Yeah, OK. [00:09:52] That's good. [00:09:53] That's what I wanted to hear. [00:09:54] I believe that the property owners want [00:09:57] to say something when they're aware of this fact. [00:09:58] He's on the edge of his seat. [00:09:59] That's all I know. [00:10:00] I know. [00:10:05] I saw the elder, Mr. Simone, out there [00:10:07] with a paint can yesterday, so. [00:10:10] Was he? [00:10:11] Hello, Eric Simone. [00:10:13] I am Paul Simone. [00:10:17] Fire away. [00:10:18] What were you doing today out there? [00:10:21] We started the footers and put a lot of deposits down. [00:10:28] Steel, rebar, steel beams, blocks. [00:10:34] Are you really frustrated with the pricing? [00:10:38] Were you frustrated with the pricing of materials? [00:10:41] Point of order here. [00:10:42] Before you talk yourself out of this, [00:10:44] let us get the vote in, can we? [00:10:47] Not that you would, but anything could happen. [00:10:49] And it's to us right for the sake of it. [00:10:52] We've still got Ms. Manns brought us off track, I think. [00:10:58] Mr. Peters? [00:10:59] Yeah, I don't have any comments. [00:11:02] Looking forward to it. [00:11:04] Thank you, Mr. Altman. [00:11:05] Yes, sir. [00:11:07] Yeah. [00:11:08] Those in favor? [00:11:09] All those in favor, please signify by saying aye. [00:11:12] Aye. [00:11:13] Opposed, like sign. [00:11:14] Now you can speak without worrying [00:11:16] about screwing up the vote. [00:11:19] So where are we? [00:11:23] We're excited. [00:11:23] That's the most I can say. [00:11:25] It's exciting. [00:11:26] It's exciting. [00:11:26] It's a big thing for us. [00:11:28] Are you surprised at the cost of materials right now? [00:11:32] Or were you ready for it, I guess, is to say? [00:11:35] What would you say to that? [00:11:37] Are we surprised at the cost of materials? [00:11:40] It's supply, really. [00:11:42] I've been doing this for 30 years. [00:11:45] This is probably my 12th, the ninth one I'm going to own. [00:11:48] I've built 12 hotels. [00:11:50] It's just what's going on in the last couple of years. [00:11:52] Yeah, but I have a good reputation [00:11:57] with a lot of suppliers. [00:11:58] So they're out there. [00:12:00] You just have to find them. [00:12:02] If there's a will, there's a way. [00:12:03] That's it. [00:12:04] Fair enough. [00:12:05] Like for blocks, for example. [00:12:06] You listening to that, Pete? [00:12:07] You've got some property, right? [00:12:09] Maybe you can help me. [00:12:11] I would say 15%, 20% increase on the whole. [00:12:17] So we're going to spend $10.5 million. [00:12:20] This project, five years ago, probably [00:12:23] cost $9.5 without land, with inflation and everything. [00:12:29] So this should be OK. [00:12:31] Glad to hear you're happy. [00:12:33] Not happy, but happy. [00:12:35] Well, there's a lot of little things like, for example, [00:12:38] blocks. [00:12:38] Is it hard to get? [00:12:39] Yes, but if you're willing to get a flatbread truck [00:12:42] and go get it, there you go. [00:12:44] It's stuff like that. [00:12:46] So it's like, all right, rented truck, let's go get it. [00:12:50] Excellent. [00:12:52] Anything else? [00:12:54] Good luck. [00:12:54] Yeah, good luck. [00:12:56] We're going to shoot for March 1, 2023. [00:13:00] So if we don't make it, 13, 14 months tops. [00:13:07] But I'm shooting for March 1. [00:13:09] Excuse me, can I get out for a second [00:13:11] before we close the meeting? [00:13:13] Yeah, go ahead. [00:13:14] Did anyone ask any questions about the magazine or anything? [00:13:20] When do you plan on starting that? [00:13:23] Well, Thursday is the final development review. [00:13:26] Yeah, we're going to have a development review committee [00:13:28] meeting on the project on Thursday. [00:13:29] On the condo? [00:13:31] No. [00:13:32] At the hotel. [00:13:33] At the hotel. [00:13:36] I knew that was coming. [00:13:38] He did that at the Hacienda also, by the way. [00:13:41] We're not going to rent rooms by the hour, don't worry. [00:13:45] I mean, by the minute. [00:13:50] Where are we on the magazine? [00:13:52] Magazine, we're about maybe $350,000, $400,000 so far [00:14:02] into this whole development. [00:14:05] Sorry it took so long. [00:14:06] But we are going full blast Thursday at 10 o'clock. [00:14:13] We're going for final site plan. [00:14:15] Yes. [00:14:16] Which is big. [00:14:17] And if everything goes well, June, July, it's coming now. [00:14:24] And then I have to do piling October. [00:14:29] It's going to take me two, three months to tear that place down. [00:14:32] And then we'll want to start October construction. [00:14:38] Very good. [00:14:39] It's very exciting. [00:14:40] Thank you for what you're doing to help. [00:14:41] That's going to be very nice. [00:14:44] Two buildings, 48 condos, 48 condos, and a rooftop bar, [00:14:50] Spring Hill Suites by Marriott. [00:14:53] Six stories above the parking, monster buildings, [00:14:57] all two bedrooms. [00:15:00] 1,582 square feet, each condo. [00:15:04] All two twos, so. [00:15:07] The Spring Hill Suites in Bradenton on the river there. [00:15:11] Yes, you're familiar with that hotel? [00:15:13] Yeah. [00:15:13] Yeah, so you'll have an idea of what. [00:15:17] I mean, it's all custom built, right? [00:15:20] But you have an idea, it's on the river. [00:15:22] Right, yeah, it's a beautiful, beautiful building. [00:15:24] Yeah, so that's what we would like to do. [00:15:26] What's your estimate on the value, the purchasing value? [00:15:31] For the condos? [00:15:32] For by unit, yeah, condos. [00:15:34] For the condos? [00:15:35] Yeah. [00:15:36] The average price right now, as of now, [00:15:38] because a lot of condos are starting to sell for a lot [00:15:40] higher in New Port Richey. [00:15:42] Brand new construction, they'd probably [00:15:43] be floating around $360,000 average price. [00:15:47] So it's kind of full scale, you know? [00:15:51] Probably second, third floor, $330,000. [00:15:54] And they go up $10,000, and then the seventh floor or six, [00:16:01] above parking. [00:16:03] You want to move your deposit to that? [00:16:05] No, not right now. [00:16:08] Wait till I, well, if I, you know, [00:16:09] I'm not even getting the raise next April, [00:16:12] so I won't even know this April. [00:16:14] I'm getting fired. [00:16:15] Well, thank you. [00:16:16] Thank you very much for what you're doing. [00:16:18] Do we have any? [00:16:19] We'll pay for the first inspection. [00:16:20] Yeah. [00:16:21] Any other business to come before the CRA tonight? [00:16:27] Hearing none, I'd entertain a motion to adjourn. [00:16:31] 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.

5. 5Communications
6. 6Adjournment