On the agenda

1. 2

   Approval of June 7, 2022 CRA Meeting Minutes

   approved

   The CRA Board approved the minutes of the June 7, 2022 CRA meeting.

   • motion:Approve the June 7, 2022 CRA meeting minutes. (passed)

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   [00:00:00] Very good. Next on the agenda is the approval of the June 7th CRA meeting minutes. [00:00:06] Move for approval. Second. Any discussion? Hearing none, all those in favor, please [00:00:13] signify by saying aye. Aye. Opposed, like sign. Motion passes. Next is a request to

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2. 3

   Request to Amend Rent Reimbursement for Backdraughts LLC

   approved

   The CRA Board approved a request to deviate from the standard rent reimbursement grant requirements for Backdraughts LLC, allowing reimbursement to begin in April 2022 prior to the issuance of the CFO, with a maximum payment of $15,000 over 12 months. The deviation was granted due to construction delays creating financial hardship for the business opening a second location at 6345 Grand Boulevard.

   • motion:Motion to approve the deviation from the rent reimbursement grant requirements for Backdraughts LLC, allowing reimbursement starting April 2022 with a maximum payment of $15,000 over 12 months. (passed)

   📍6345 Grand Boulevard🏢Backdraughts LLC👤Allman👤Barbara Carr#CRA Rent Reimbursement Grant Program

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   [00:00:19] amend rent reimbursement for backdrops. Yes, the request relates specifically to [00:00:28] the rental reimbursement grant, which is a program offered through our CRA program, [00:00:35] and Mrs. Carr will present the agenda item. For the record, I'm Barbara Carr with the City of Newport, [00:00:45] which is Economic Development Director, and we're recommending that we do a deviation from our rent [00:00:52] agreement, which specifically has information regarding having to have a business tax receipt [00:01:01] license. The application states rent reimbursement will not be paid until all construction has ended, [00:01:06] and we're recommending a deviation from this application requirement and offer the rent reimbursement as of April of 2022 and end April of 2022 with a maximum payment of $15,000 of total [00:01:21] rent for the 12 months, which they are paying $38,400, and then their next two years, $48,000 in rent. The business is currently located in Tarpon Springs, and the location in [00:01:34] New Port Richey, will offer wood-fired pizza, wings, salads, and desserts to more than 200 square feet. There's also the construction that is about $110,000 that will happen to the building for the redevelopment of the property that's located at 6345 Grand Boulevard, and our recommendation is to allow us to provide them with a rent reimbursement [00:02:03] Thank you. Anything else? [00:02:07] This is a second location for the Tarpon Springs restaurant, and the grant program is structured so that it is for a 12-month period of time. So what we're specifically asking for is to allow them to participate three months prior to the CFO being issued for the property. [00:02:34] They paid for their rent six months in advance, and as a result of some unforeseen construction delays are in a spot where they're paying for their second six months of rent due, and that's created a hardship for them. So they've asked for some special consideration in that regard, and that's why we're bringing this matter forward to you for your consideration. [00:03:01] Thank you. I'll open it up for public comment. [00:03:04] Seeing no one come forward, I'll bring it back to Council, or back to the CRA. [00:03:09] Move for approval. [00:03:11] Second. [00:03:13] Any discussion? [00:03:15] Yeah, I'd just like to say I totally get the whole construction aspect of it with delays and materials, and it can definitely put a business in a financial situation without getting things done timely. [00:03:29] So I mean, this is something we were going to do for them regardless, just a little early to help them along, and honestly, I feel like that's kind of our job if we're going to help and promote the businesses get rolling here and be business friendly. [00:03:43] I think this is a good way to do it. [00:03:46] Mr. Allman? [00:03:47] I agree. [00:03:49] Yeah, my only comment is first we put a microbrewery in there, and then we put an ice cream store, and now we're putting a pizza place in all right across the alley from my office. [00:04:00] This is not good for my diet, but I can't hold that against them. [00:04:06] So if there's no further discussion, all those in favor, please signify by saying aye. [00:04:11] Aye. [00:04:12] Opposed, like sign. [00:04:14] Motion passes.

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3. 4

   ↳You arrived here from a search for “Peter Altman” — transcript expanded below

   Financial Update

   discussed

   Finance Director Mrs. Feast presented a CRA financial update through June 30, 2022, covering revenues (TIF from Pasco County $2,022,241; TIF from city general fund $2,413,790; ARPA funds $400,000), expenditures including redevelopment incentives ($587,408, with $250,000 to New Port Richey Hotel Group and $107,464 in tax rebates to Central Orange Partners LLC), capital projects, and debt service. The CRA has a negative fund balance of approximately $4.8–4.9 million tied to an $8.2 million advance from the General Fund, but a positive net change in fund balance of $1.2 million for the year. No action was taken.

   🏢Central Orange Partners, LLC🏢Newport Richey Hotel Group🏢SunTrust Bank👤Mr. Altman👤Mr. Murphy👤Mr. Peters👤Mrs. Feast#2016 bond#2020 A and B bonds#American Rescue Plan Act (ARPA) funds#Baptist Church property write-down#Downtown Improvement Project#Marine Parkway Pedestrian Bridge#Railroad Square project#Redevelopment incentives program#Tax Increment Financing (TIF)#U.S. Highway 19 and Main Street Gateway project

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   [00:04:15] Next, we have a financial update. [00:04:17] Yes, Mrs. Feast will be providing a financial update of the revenues, expenditures, and changes in fund balances of June 30, 2022. [00:04:28] Thank you, Mrs. Feast. [00:04:32] Good evening. [00:04:34] As the city manager mentioned, tonight I'll be giving you a financial update of the city's CRA through two-thirds of the fiscal year, ending June 30, 2022. [00:04:45] I will start by covering the significant activity for the fiscal year, and then I'll conclude with a snapshot of a set of financial statements to end the PowerPoint presentation. [00:05:00] So first, I'll go over revenues and other financing sources. [00:05:05] The CRA receives three significant streams of revenue, the first two being tax increment financing. [00:05:14] One is received from Pasco County, and what they received this fiscal year totaled $2,022,241. [00:05:23] The second tax increment financing was from the city's general fund, and that totaled $2,413,790. [00:05:33] This stream of revenue is required to be provided to the CRA by December 31st of each year. [00:05:41] The next and final stream of income or revenue for the CRA was from the American Rescue Plan Act funds, totaling $400,000. [00:05:52] If you recall, this was part of the approved spending plan that was approved last fiscal year, where we dedicated our obligated $400,000 for redevelopment incentives for the CRA. [00:06:08] The next category is expenditures, and we'll start with the general government payroll and operating totaled at this point, June 30th, $266,117. [00:06:22] And that primarily includes 25% of the city manager and city attorney's time and a full-time marketing specialist position. [00:06:35] And then other operating costs that are included are marketing and ads and planning services. [00:06:42] The next category under expenditures is redevelopment incentives, and as of June 30th, the CRA has spent $587,408 in this category. [00:06:55] And some of the high-dollar development incentives that have gone out thus far include $250,000 to the New Port Richey Hotel Group and $107,464 in tax rebates to the Central Orange Partners, LLC. [00:07:18] The next category I'll go over is capital projects, the first being the Marine Parkway Pedestrian Bridge. [00:07:26] So far this fiscal year, we've spent about $32,000, which covers design and consulting work so far on this project. [00:07:38] Along with that capital project, we also have two others that are budgeted but have not really spent many dollars thus far, and that includes the downtown improvement project, [00:07:52] which is, if you recall, the majority of the funds here is obligated for the Railroad Square project. [00:08:01] And staff is currently near completion of the design documents and will make a presentation to the CRA board actually next meeting. [00:08:10] The final project is the U.S. Highway 19 and Main Street Gateway project, and similarly this project is also in design phase. [00:08:20] Staff is currently in the process of obtaining construction estimates and will make a presentation once that information is solidified, most likely in August. [00:08:32] The final category of expenditures includes transfers out, and that is a transfer. [00:08:41] The first item is a transfer to the General Fund for Administrative Services. [00:08:45] This is just services that the General Fund provides on behalf of the CRA, and the total through June 30th is $200,843. [00:08:55] The next item is debt service payments, which total $1.9 million, and this covers debt service requirements for the 2016 bond and the new bonds, which we issued in 2020, both A and B. [00:09:14] And the final transfer out is also to the General Fund, but it's to repay the advance that the CRA and General Fund have, which is approximately $8.2 million. [00:09:29] If you recall a couple of years ago, the CRA did start repaying this debt, and so the annual debt service requirement is $619,310. [00:09:42] So this slide, and I apologize for the font, I thought it would appear a little bit larger than that, but so this slide pulls all of the highlights together into a set of financial statements, [00:09:54] specifically the statement of revenue and expenditures and change in fund balance. [00:09:59] And so you'll see that the fund balance as of 6-30-2022 is a negative $4.8 million, $4.9 million. [00:10:09] And this is directly related to that advance between the CRA and the General Fund that I mentioned before. [00:10:16] As the CRA pays this debt down, then the fund balance will obviously go down and become positive at some point. [00:10:26] So a better reflection of the activity that I just presented is what's circled in red, and that's the net change in fund balance. [00:10:34] And it's a positive $1.2 million. [00:10:37] And it's a better representation because it represents the activity of current revenue and current expenditures. [00:10:44] So basically that $1.2 million represents what's left or what's available of fiscal year 22 funds for the CRA. [00:10:53] And that's all I have. [00:10:54] I'll take questions if there are any. [00:10:57] Thank you. [00:10:58] Open up for public comment. [00:11:00] Seeing no one come forward, bring it back to the CRA. [00:11:02] Mr. Altman, anything? [00:11:04] Yes, thank you. [00:11:06] So this is half of the financial statement. [00:11:09] The other half is a balance sheet. [00:11:12] And so when you commented about the $6 million negative fund balance going down as a direct effect of paying the loan back to the city, [00:11:26] the revenue, the positive revenue, obviously helps to eliminate the negative fund balance. [00:11:37] But the fund balance was created when the $7 million was paid off and money came from the utilities to the general fund, [00:11:49] which then loaned it back to the CRA to get rid of a loan from SunTrust Bank, I think, that was there. [00:11:59] But the negative fund balance is a result of the write-down of the Baptist Church property, [00:12:05] which includes not only the central but also the pizza, ice cream shop. [00:12:14] So it was the CRA's purpose when they took the non-property tax payment paying nonprofit parcel in our downtown [00:12:31] and converted it to land for redevelopment, which then creates the taxes that are coming in. [00:12:37] So there's a financial strategy. [00:12:40] And the reason I mention it is because my colleague who's not here, Mr. Peters, [00:12:45] made an assertive comment about our debt and what we could afford and what we're doing. [00:12:51] And looking at the cash flow, I guess my first question is, [00:12:56] do we have any more debt payments before the end of the year to pay on our notes? [00:13:02] No, that represents the rest. [00:13:05] So we're pretty much year-end other than whatever is spent this year. [00:13:08] So the good news is we had a positive cash flow this year, [00:13:14] and we have a lot of projects that we need to start talking about that the CRA will have. [00:13:19] I would like to reflect on the other comment you made about the payment in lieu of taxes. [00:13:25] One of the expenses is giving back to the central taxes that they pay as an incentive, [00:13:31] and I think we've done that in a number of other cases. [00:13:35] And so I just want to make the point that as new investment comes into our town, [00:13:40] it creates new tax base that, to the degree that the payments that are made, [00:13:47] to the extra money coming into the city as a result of economic activity, [00:13:52] funds are available to rebate back. [00:13:56] So when we talk about the city growing, we're not talking about a city that's sitting on a salary, [00:14:05] having to decide how to spend its money. [00:14:08] We're talking about economic activity that we're trying to create that will generate more taxes. [00:14:14] And so I really hope we can get past the level of discussion that I've had up here before [00:14:23] and had to sort of interact with before, [00:14:26] which is not an understanding of economics and the economics of the CRA. [00:14:32] The faster it grows, the more it grows, the more it can pay back the general fund, [00:14:36] $8 million transfers back over. [00:14:40] You know, hopefully the CRA as its entity, as we sit here with a different hat on, [00:14:48] can be well recognized by the other departments of the city [00:14:52] to whom some money is allocated for the effort that's spent on that. [00:15:00] because we have projects, as you've mentioned, that haven't begun yet. [00:15:07] And the final thing I'll say is you mentioned the majority of the funds [00:15:12] that were obligated for the Railroad Square project. [00:15:15] But when we passed the budget last year, we enlarged the topic to say shade [00:15:24] and lighting throughout the town. [00:15:26] And we have all these great studies which can give us a lot of things that we can do [00:15:31] to help keeping that ball rolling. [00:15:33] So I think it's great news. [00:15:36] I think the balance sheet is the problem when you see that loss [00:15:41] and it makes you worry that you're in the hole. [00:15:43] But we made it. [00:15:45] I wasn't on the Council at the time, [00:15:47] but the Council made a concerted decision to sell that hospital [00:15:51] so that that redevelopment could occur. [00:15:54] Those taxes will continue to come in well into the future [00:15:57] when the CRA is done to the benefit of the city. [00:16:00] So I'm a CRA preacher man, and I just got a chance to do a little sermon, [00:16:06] so thank you for letting me slip that in. [00:16:10] But I would like to ask if we could get complete financial statements, [00:16:14] which we'll get at the end of the year. [00:16:16] But without the balance sheet, the income statement doesn't tell it all. [00:16:22] Thank you. [00:16:23] I would direct you towards your inbox upstairs if you haven't been there. [00:16:30] The audited financials are there, which congratulations. [00:16:35] I know we're going to have an audit report from the accountants next meeting, [00:16:40] but it's not too early to say I am just tickled to death to see what you did. [00:16:47] Mr. Murphy, anything? [00:16:48] I'm good, thank you. [00:16:49] In that case, all those in favor? [00:16:52] Because we have to do anything. [00:16:53] Motion on that one.

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4. 5

   Request to Authorize a Letter of Intent to Purchase Property Located at 6128 U.S. Highway 19

   approved

   The CRA Board authorized the City Manager to submit a letter of intent to purchase the former SunTrust property at 6128 U.S. Highway 19 from Madison Marquette for $2,200,000. The property is intended for redevelopment in conjunction with the adjacent former church property, with potential uses including highway commercial, stormwater resiliency, and housing, to be developed via RFP with a private partner.

   • motion:Authorize the City Manager to prepare and release a letter of intent to Madison Marquette to purchase 6128 U.S. Highway 19 for $2,200,000. (passed)

   📍6128 U.S. Highway 19📍South River (old church property)🏢BB&T Bank🏢Madison Marquette🏢Ordinance 1🏢SunTrust Bank🏢Tampa Bay Regional Planning Council🏢Truist👤Barbara Carr👤Councilman Altman👤Dale Hollis👤Debbie👤John👤Mr. Murphy👤Ms. Manns👤Sean#$800,000 grant for drainage and river cleanup plan#People Places event#Resiliency and stormwater planning#Water and Sewer Fund (bonding mechanism)

   ▶ Jump to 16:55 in the video

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   [00:16:55] Next is a request to authorize a letter of intent to purchase property [00:16:58] located at 6128 U.S. Highway 19. [00:17:03] This is a property that you are all familiar with. [00:17:08] It is not the first time that I have asked you to authorize a letter of intent, [00:17:14] and it relates to the property which houses the former Suntus property. [00:17:21] The last time I asked you about the property, [00:17:24] we were responding to an appraisal that was conducted in November of 2021, [00:17:32] and the appraised value at that time for the property was $2 million. [00:17:39] And the property at that time was owned by Truist, [00:17:48] which was and is an organization that was formed through a joint venture [00:17:59] of SunTrust and BB&T Bank. [00:18:02] We, as a city, have enjoyed quite a propitious relationship with SunTrust Bank. [00:18:09] It became very complicated when BB&T entered the picture, [00:18:14] and they did not or we did not enjoy quite as much cooperation with them [00:18:21] as we did with Truist as it related to the city's interest in the property. [00:18:28] In fact, one could suggest that they may have misrepresented their intent, [00:18:36] to some degree, to sell the property to the city at the $2 million price. [00:18:44] And unfortunately then, when our letter of intent was submitted to them, [00:18:52] they were unable to actualize the sale as they had committed orally to doing. [00:19:03] So, that being said, the sale has gone on to an investment group [00:19:10] whose name is Madison Marquette, and they are due to close with Madison Marquette [00:19:17] towards the end of this month. [00:19:21] No, I'm sorry, either in the coming weeks. [00:19:25] And Madison Marquette bought over 400 banks in a package from Truist, [00:19:33] and they are interested in selling all of the banks [00:19:40] and were interested in buying one of the banks. [00:19:44] I have had discussion with their director of real estate [00:19:51] to indicate the CRA's interest in the New Port Richey location, [00:19:56] and he's indicated an interest in selling. [00:20:01] Rather than to have a new appraisal conducted, [00:20:07] which commits to writing an increased value, [00:20:13] which I'm certain would reflect a value in excess of what our last letter of intent was, [00:20:23] I'm recommending that we put in an offer in our letter of intent [00:20:31] in the amount of $2,200,000, [00:20:35] which I would consider to be a strong offer [00:20:39] and one that will gain their ear, at least, [00:20:45] and one that represents potentially a modest transfer profit for them [00:20:55] and motivation to go forward with the sale of just one bank out of their group. [00:21:02] The property continues to be of interest as part of an overall plan [00:21:08] to redevelop the quadrant of the city that it represents [00:21:18] relating to our property located immediately to the east. [00:21:26] And the value, I think, is fair and appropriate [00:21:34] based on the growth in real estate values since November of 2021. [00:21:42] So with that, I'm asking for your authority [00:21:48] to go forward with the preparation and release of a letter of intent to Madison Marquette [00:21:57] for the purchase of 6128 US Highway 19. [00:22:02] Thank you. I'll open it up for public comment. [00:22:05] Seeing nobody come forward, I'll bring it back to the CRA. [00:22:09] Move for approval for discussion. [00:22:11] Second. [00:22:12] To the maker. [00:22:14] Yes, sir. [00:22:15] So, you know, we've got the parking garage. [00:22:20] We've got a lot of stuff happening, [00:22:21] and we've also got a $800,000 grant to do something to create a drainage [00:22:29] and a river cleanup plan. [00:22:33] I know we talked about that. [00:22:34] There was even some hesitation at the point about how much space that would take [00:22:39] in order for that valuable redevelopment property. [00:22:45] I'm certain that it's our intention to have more development come out of this purchase. [00:22:52] But the consolidation of those two properties, [00:22:56] the advice we've already received from DOT about the traffic issues we have [00:23:01] and the potential to put from Main Street back to the south, [00:23:08] an additional sort of road there between Waller [00:23:11] and do something that can allow all of this new activity to escape out to the highway, [00:23:17] especially if it's going north without crossing Main Street, [00:23:20] which is becoming busier all the time. [00:23:23] It's a master plan that needs to happen, [00:23:25] and it needs to have a private partner at some point. [00:23:29] This is like inventory, like when we bought the church, I guess, in that regard. [00:23:33] Inventory that would allow us to be able to have a good seat at the table [00:23:38] to get something that we want to have happen there. [00:23:42] I will add to the comment for you, Debbie, as our director, [00:23:50] and to Barbara from the economic side and the redevelopment side, [00:23:56] that the Tampa Bay Regional Planning Council showed that old video of the pond [00:24:01] and all this activity around there at their recent symposium, [00:24:06] and that Sean indicated that he has a willingness, if there's any interest, [00:24:12] in helping to put together like an RFP or design request, [00:24:19] which they've been doing for other cities. [00:24:21] So this goes all the way back to John's comment about resiliency. [00:24:24] This is what we got the money for. [00:24:27] And the only other question that I have before I vote would be, [00:24:31] I remember when we talked about certain things related to timing. [00:24:39] When a building is empty, does the – I guess it doesn't matter how long it's empty [00:24:47] when it comes to rights to remodel or for it to not be – not something good happen to it. [00:24:59] It's all about signage, which we were talking about in the past, I think. [00:25:04] When it comes to the impervious state condition of all those parking lots [00:25:10] that don't require a builder to put drainage in, [00:25:14] then all that drainage that's currently going directly into the river, [00:25:18] there's no other way for us to solve that really, is there, [00:25:22] other than for us to solve it, I guess, because you can't put that obligation on the developer. [00:25:28] So I'm very keen to see that we implement resiliency and stormwater as well as – [00:25:38] I have this incredible picture from last week of Three Manatee right there at the bridge. [00:25:44] Some of you might have seen it if it was on – I put it on Facebook. [00:25:48] But, you know, we had a real good thing going here, and I think that's a great project, [00:25:53] and I'm very happy to see that you brought it to in front of us. [00:25:56] Mr. Murphy. [00:25:57] Yeah, I agree with Councilman Altman. [00:25:59] We need to make sure we're incorporating the resiliency part of that in that project, [00:26:04] and any project we really can for our future. [00:26:07] I know people get uneasy about the city buying property and things like that, [00:26:12] but it puts us in a situation where we can drive what happens in our city [00:26:17] versus a corporate entity that just wants to make a profit and sell to anybody. [00:26:22] So it puts us in a good position, and it's not something we want to hang on to. [00:26:25] It's something that we want to have developed by a private entity [00:26:28] and be what's best for the citizens. [00:26:31] So I look forward to seeing what that hatches there. [00:26:36] Mayor, I should have stated previously, [00:26:40] and thank you, Councilman Murphy, for Deputy Mayor this evening, Mr. Murphy. [00:26:49] It is the intent, if this purchase is solidified, [00:26:54] to let the development of this property through an RFP in the short term. [00:27:00] We expect to bring on a private developer, [00:27:04] and if the property is to be held as an asset, [00:27:10] then the city would bond for the property in the likelihood [00:27:18] that it would only be held for a short period of time. [00:27:22] Then we would borrow the money through the Water and Sewer Fund, [00:27:25] and we pay it at the time of title transfer. [00:27:29] Thank you. [00:27:30] The nice thing about this parcel is, of course, [00:27:33] it's immediately adjacent to the old church property on South River, [00:27:38] which instead of having two relatively small properties, [00:27:43] potentially gives us one very large one, which has a number of potential uses, [00:27:49] including highway commercial, including stormwater resiliency, [00:27:57] and including housing as all part of the package. [00:28:02] So it has a lot of merit, [00:28:04] and I'm very glad to see us attempting to go ahead and get control of this. [00:28:09] Any other discussion? [00:28:12] Hearing none, all those in favor, please signify by saying aye. [00:28:15] Aye. [00:28:16] Opposed, like sign. [00:28:18] Motion passes. [00:28:20] Before we close, I would just like to mention that our Economic Development Director, [00:28:25] Barbara Carr, is the featured speaker next Tuesday night at People Places, [00:28:34] which is from 5.30 to 7 o'clock at Ordinance 1. [00:28:40] That should be a very interesting meeting. [00:28:43] I contacted Ms. Manns and the city clerk to see if we could adjust our schedule [00:28:50] for next week so that we can actually be there and be in attendance [00:28:54] and hear all the good stuff that you're going to talk about. [00:28:58] I think it's Dale next time. [00:29:00] Dale Hollis with Community Development. [00:29:02] But if he wants to switch, I will gladly do it. [00:29:04] I think they said Economic Development Director in their promotion. [00:29:10] I'm more than happy to do it. [00:29:12] Okay. [00:29:13] Well, you guys might better check with People Places [00:29:17] and find out which one of you is actually expected to talk. [00:29:21] Okay.

   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. 6Adjournment▶ 29:22
6. 1Call to Order - Roll Call