CRA (Community Redevelopment Agency) approved a $250,000 redevelopment grant for an 89-room Comfort Inn at 6206 US 19 and waived $121,334 in late-payment penalties for Pasco County.
6 items on the agenda · 3 decisions recorded
On the agenda
- 1Call to Order - Roll Call▶ 0:00
- 2
Approval of December 21, 2021 CRA Meeting Minutes
approvedThe 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)
▶ Jump to 0:16 in the videoShow transcriptHide transcript
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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.
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Request for Waiver of Penalty Fees from Pasco County
approvedThe 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 CountyWest Pasco Press BuildingDavisMs. MamsMurphyPetersFY2022 CRA fundsPort Richey CRA auditTax Increment Financing base year calculation▶ Jump to 0:32 in the videoShow transcriptHide transcript
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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.
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You arrived here from a search for “Peter Altman” — transcript expanded below
Commercial Real Estate Redevelopment Grant Agreement w/New Port Richey Hotel Group LLC
approvedThe 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 19Choice HotelsComfort Inn and SuitesFlagship BankKaiser UniversityNew Port Richey Hotel Group LLCSpring Hill Suites by MarriottEric SimoneMr. AltmanMr. PetersMs. MannsPaul Simone$800,000 state grant for area redevelopmentCommercial Real Estate Redevelopment GrantDevelopment Review Committee meetingHacienda project▶ Jump to 4:35 in the videoShow transcriptHide transcript
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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.
- 5Communications
- 6Adjournment