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   Resolution No. 2024-27: Approval of FY2024-2025 CRA Operating Budget & Capital Projects

   approved

   The CRA Board adopted Resolution 2024-27, approving the FY2024-2025 CRA operating budget and five-year work program. Director Orbach presented an overview of tax increment revenue ($9M projected), accomplishments, capital projects, and major initiatives including Riverside Inn acquisition, Railroad Square, and the Schreppman/Historic Gulf High School redevelopment. The motion passed.

   Ord. Resolution No. 2024-27

   • motion:Move approval of the FY2024-2025 CRA operating budget and capital projects (Resolution 2024-27). (passed)

   📍7631 US Highway 19🏢Children's Museum🏢Comfort Inn and Suites🏢Dangood🏢Great Explorations Museum🏢Hacienda🏢Kaiser🏢Main Street🏢Ritchie Suncoast Theater🏢St. Leo University🏢Stantec🏢Starbucks🏢SunTrust🏢Tampa Bay Regional Planning Council👤Altman👤Andre👤Andy👤Crystal👤Mr. Orbach👤Sean👤Tina#ARPA#Aqua Harbor#Community Redevelopment Plan update#Discovery Center#Downtown Gateway Sign#Finding of Necessity Study#Florimar Terrace#Historic Gulf High School#Hurricane Helene recovery#Leisure Van Doren#Main and Bank Infill#Main and River#Missouri Grand#NICE program#Railroad Square#Resolution 2024-27#Rivergate Palm District#Riverside Inn#Schreppman property#Series 2020 bonds#Tides of Time project

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   [00:00:21] Resolution number 2024-27. Approval of the fiscal year 2024-2025 CRA operating budget and capital projects. [00:00:36] This is resolution number 2024-27, a resolution of the City of New Port Richey, Florida Community Redevelopment Agency, a public body corporate and politic, adopting the 2024-2025 operating budget, adopting the 2024-2025 five-year work program for the Community Redevelopment Agency of the City of New Port Richey, Florida, and providing an effective date. [00:01:05] Mr. Orbach will present the proposed budget. [00:01:09] Good evening, Mr. Chair, members of the board. [00:01:12] Sometimes in our duties as public servants, we're required to deal with great tragedy and disaster, and at the same time, still do the business of the city and the CRA and look towards the future. [00:01:25] And the tones can be a lot different, and we would never want to be in the position of being in an awkward juxtaposition or callous to everyone who's hurting and is suffering right now. [00:01:37] So I want to acknowledge that and want to say that we can right-size these presentations tonight in the tone to whatever you deem appropriate. [00:01:46] But just first, I want to just acknowledge everyone who's hurting in the community and to remind them that we're here for them. [00:01:54] At the same time, we're going to go forward with this presentation on really what's the future. [00:01:59] So in the moment, we're dealing with catastrophe and tragedy and disaster. [00:02:03] Be that as it may, the future, there's still great promise and reasons to be hopeful. [00:02:08] We are a city of good neighbors, and we are going to meet this moment. [00:02:13] Working hard, smarting together, we will recover, and we will rebuild, and probably an even better version of the city. [00:02:21] But it's going to take some work, and it's going to take some time. [00:02:24] To help us get there, we're going to talk about the budget. [00:02:27] I will just want you to know that it's there. [00:02:29] Anytime we're talking about the budget, it's a great time to talk about the ABCs of redevelopment. [00:02:33] So this presentation is available to you if you ever want to take it to HOA and Better Times. [00:02:38] It explains all the ins and outs of the CRA, what it is, where it is, what we do, who we are, [00:02:47] what community redevelopment is under Florida statutes, because that's actually a defined term in Florida statutes. [00:02:54] It's not just like, oh, this is what we think community redevelopment is. [00:02:57] No, it's actually specified in state law what it is. [00:03:00] What you can do. [00:03:03] Well, it kind of boils down to you can do community redevelopment that's defined in state law and authorized by the plan. [00:03:09] And there's specific things you can't do, and that includes no eminent domain for economic development purposes, [00:03:15] no construction or expansion of administrative buildings, and then that big paragraph right there, [00:03:20] that basically says, hey, CRA, you can't do it if it was in the city general fund capital improvement program, [00:03:28] unless it's been out of it for three years. [00:03:31] And then the big no-no, no general government operating expenses unrelated to the planning [00:03:36] and carrying out of a community redevelopment plan. [00:03:39] And you can't do anything unless it's in the plan, and that's why we're always advocating for flexibility [00:03:44] and put everything in the kitchen sink in the plan. [00:03:49] So you know what a plan is. [00:03:50] We're working on it. [00:03:51] But let's spend some time with tax increment revenue. [00:03:53] That's the funding source of the agency. [00:03:55] Obviously, it's instrumental. [00:03:58] That's what powers your budget. [00:04:00] So your redevelopment trust fund, let me go back just, let me go back there. [00:04:09] So how this is calculated is you take, you know, when the CRA was reestablished in 02, you created a floor, [00:04:15] the base, quote, unquote, base value of the district, what the whole district was worth. [00:04:20] And then every year thereafter, you take the total taxable value of the district, [00:04:24] you subtract the base, and the difference is the increment. [00:04:27] Well, you get 95% of the city and county general fund taxes generated off of that increment. [00:04:34] So you take the increment, you multiply it by the millage, you multiply it by 95%, [00:04:39] and you get the revenue of the agency. [00:04:42] So your base year value was $366 million back in the day. [00:04:47] Your peak value before the bus, the Great Recession, was $827 million. [00:04:52] So the bottom of the bus, the nadir, that was $436. [00:04:57] I mean, you almost dropped 50% of your value. [00:05:00] So as of January 1, 2023, which powered our last budget year, you were at $869 million. [00:05:08] And then this year, which is the assessed value as of January 1, 2024, this is always confusing, [00:05:16] the assessed value as of January 1, 2024 is what's used as the basis for calculating your 24-25 budget. [00:05:23] And that bill, that tax bill, it's not due until March 31, 2025. [00:05:28] You already have another assessment year. [00:05:30] So sometimes you've got to map all that stuff out. [00:05:33] But the important thing to know is that for this budget year, your taxable value as of January 1, 2024, [00:05:39] that goes into the 24-25 budget, was $959 million. [00:05:44] So you did $90 million, almost $100 million increase in the total taxable value of the community redevelopment area. [00:05:52] That generated an increment of $592 million. [00:05:55] And that produces a tax increment revenue of close to $9 million, [00:05:59] with $4.67 coming from the city and $4 and change coming from the county. [00:06:05] This is hard to read at that scale and distance, even if you've been eating your carrots. [00:06:12] But you can see the positive trend. [00:06:16] And then we project into the future, just for the purposes of planning and looking ahead, [00:06:23] and like to give you a conservative estimate of 3% growth. [00:06:28] Why? [00:06:29] Because if you took a straight line through the ups and downs of New Port Richey, [00:06:34] the booms and busts, and you even factored in the Great Recession, [00:06:38] you would have a straight line annual increase of 3% and change. [00:06:42] So that's safe. [00:06:44] So even though we hope to see things like Aqua Harbor and the redevelopment of the former community hospital [00:06:50] and so many other positive redevelopment projects, that's not plugged into your model yet, [00:06:55] just a base increase of 3% over time. [00:06:58] That allows us to plan for your future and our future. [00:07:01] The last year's budget is in there, just in case you guys ever needed it. [00:07:05] The mission for the CRA is pretty straightforward. [00:07:07] It's to bring your community redevelopment plan to life [00:07:10] and to collaborate with everyone who cares about New Port Richey [00:07:13] on making our city the best walkable waterfront historic hometown in Florida. [00:07:18] Accomplishments. [00:07:19] We talked about this in the workshop, the installation of the downtown gateway sign. [00:07:24] We did some property acquisition that would make a downtown riverfront come to life. [00:07:29] We got Aqua Harbor moving forward. [00:07:31] Missouri Grand was done. [00:07:33] Ritchie Suncoast Theater is doing great things. [00:07:36] We've had a number of grant improvement projects. [00:07:39] But I did want to just take this opportunity to thank everybody [00:07:42] for allowing the Children's Museum Summer Program to move forward. [00:07:47] And that did recently come to an end. [00:07:49] So thank you to the board for your leadership. [00:07:51] I want to thank, of course, the manager and also Andy and Andre, [00:07:55] who really made it go in the library and parks and rec. [00:07:59] They really made it happen. [00:08:00] So I just want to thank them and their teams. [00:08:02] And I want to thank, of course, the whole board, [00:08:04] but I want to give special thanks to Board Member Altman, [00:08:08] because in his capacity as a philanthropist, he came through. [00:08:12] I just want to give him a shout-out because he and his group of caring people [00:08:19] did offset the cost of the program as intended. [00:08:23] So when those final invoices came in and it was time to pay, [00:08:28] our bill was offset by the contribution of the group. [00:08:32] So I just wanted to thank you and acknowledge that you delivered [00:08:36] on your promise to fundraise. [00:08:41] Moving on, accomplishments of 24. [00:08:45] Obviously, we're working on the redevelopment plan. [00:08:48] We're working on the hospital redevelopment. [00:08:51] The acquisition of Historic Gulf High School, [00:08:53] the executive director has been working very hard on. [00:08:57] We have a very long list of projects that we're working on. [00:09:04] We're working with Main Street, of course. [00:09:07] They have been really exemplary. [00:09:11] They're on the rise. [00:09:13] And shout-out to our good friend Tina, who broke her wrist [00:09:17] and lost everything again in the house. [00:09:20] So she'll be out for the week, but she's still texting away with one hand. [00:09:26] Amidst the chaos, I just want to recognize her and everyone there. [00:09:31] A special highlight of collaboration is the Tides of Time project, [00:09:35] so thank you to everyone that's involved. [00:09:37] Since this is the budget and we're a family, [00:09:40] I always think it's good to celebrate financial accomplishments. [00:09:44] And again, I know this is weird because we're in a difficult moment of time [00:09:50] and talking about happy stuff, [00:09:52] and it's hard not to be excited when you're just narrowly looking at this [00:09:57] and not considering everything. [00:09:59] So, again, if you're catching this out of context, [00:10:02] it's not meant to be calloused in any way. [00:10:05] The total taxable value increased 10%, which is obviously a great trend. [00:10:10] Anytime your portfolio goes up 10% in a year, you're usually pretty happy. [00:10:15] It certainly beats the alternative. [00:10:18] We also paid off the 2020 aid bonds, which funded a portion of the parking garage. [00:10:22] So any time that a family can knock off one of those pieces of debt, [00:10:25] that is something to celebrate and to recognize. [00:10:28] And maybe not today because the budget is getting adopted hopefully [00:10:31] knock on wood tonight, and it's been a busy week. [00:10:35] Later this week, we'll pay off the SunTrust note. [00:10:39] So that piece of debt that she used to acquire SunTrust will be paid in full. [00:10:44] Okay, so, again, you knocked that off. [00:10:48] We're going to have a really busy and great 25. [00:10:51] It's hard to fit everything in there. [00:10:54] We're going to complete the finding necessity study. [00:10:56] We're going to complete the update to the master plan. [00:10:59] We're going to work on the redevelopment of the hospital site, [00:11:01] Historic Gulf High School, the redevelopment. [00:11:04] Sorry, Sean, I've got to say it out loud, Riverside Inn, [00:11:07] Aqua Harbor, Main and River, the Rivergate Palm District, [00:11:11] Rochey Suncoast Theater, the redevelopment disposition of the health department building. [00:11:16] And I'm looking at the executive director because I was lobbying her this week [00:11:19] because it's really come into play due to recent events. [00:11:23] We might need some homes for some displaced folks. [00:11:28] So I'm lobbying her. [00:11:29] She'll beat me up later. [00:11:33] Main and Bank Infill, Leisure Van Doren is going to be a huge work effort. [00:11:38] We're going to get out into the neighborhoods with the NICE program, [00:11:42] whether it's Hurricane Helene recovery or otherwise. [00:11:47] But we're going to encourage infill development, revitalization, and homeownership. [00:11:52] Additionally, the new community redevelopment plans uses the terminology from Stantec of pillars [00:12:00] and identifying that there's really four pillars, [00:12:03] whether you call them pillars or cornerstones or essential elements or foundational. [00:12:09] These are the things that kind of make us us. [00:12:12] And that's downtown, our historic neighborhoods, U.S. Highway 19 corridor, and the river. [00:12:18] And so we got capital projects and placemaking like Railroad Square and Grand Boulevard, [00:12:24] Florimar Terrace improvements, U.S. 19 and Main Street Gateway landscaping, [00:12:29] Main Street improvements, continuing what we've done into that Rivergate Palm District. [00:12:35] Finally, hopefully addressing this issue of downtown shade tree bump outs and getting shade downtown. [00:12:43] We have an amazing downtown. [00:12:45] We could use more shade. [00:12:47] I didn't get out there this year. [00:12:48] We're kind of leaving summer. [00:12:49] I wanted to get out there with a pyrometer and actually shoot the temperature. [00:12:54] If you know what a pyrometer is, it's a laser device that you can measure temperature with. [00:12:58] Measure my forehead or the mayor's forehead, see if we're running hot or not. [00:13:03] But you could also use it and see the differential in temperature between like out front of City Hall [00:13:09] and the library where there's shade and then like in front of Dangood where you're just cooking. [00:13:15] And it's going to be a 10 to 20 degree temperature swing. [00:13:20] And so it would be good to get shade downtown. [00:13:23] And we're going to use tax increment revenue to leverage other funding. [00:13:26] We're going to go out there and we're going to win some funding this year. [00:13:29] We have a grant writer, and you have a director underneath the executive director. [00:13:35] So a lot done in 24, a lot to look forward to in 25. [00:13:40] Of course, you only had me for three quarters of last year, [00:13:44] and the executive director had to put me through a JEDI training for half of it. [00:13:48] So we're just getting started together. [00:13:51] Jumping into the org chart, you've seen it before. [00:13:55] But Crystal was kind enough to put in the actual percentages of time [00:13:59] because we know that that's been a question in the past. [00:14:02] And by the way, Crystal and Madam Executive Director, if you want to jump in, tag team this at any moment. [00:14:09] Just give me the sign. [00:14:12] Crystal's also prepared just the big overview of where the revenues come from. [00:14:18] And so there you see the tax increment from county. [00:14:20] And the way our budget is done, because these are all funds of the city, [00:14:25] rather than tax increment from city, it's shown as a transfer from the general fund. [00:14:30] So you see almost that 4.2, that's tax increment. [00:14:34] And even though it's called transfer from general fund TIF, that 4.7 is also tax increment just from the city. [00:14:42] Then you have interest earnings because of the amount of balance we carry, [00:14:45] and that's why little things like cash management that Crystal does is so important. [00:14:50] Because if you manage your cash correctly and you earn interest, [00:14:54] you might find that you could do half of a downtown sign program through interest. [00:15:00] earnings, and those are the little things that end up making a big difference over time. [00:15:06] Surplus land sales is actually a pass sale, that's the payment from Hacienda coming in, [00:15:11] and contractual contributions, that's things like Comfort Inn and Suites in Kaiser participating [00:15:16] in the maintenance of the parking garage, and you'll see later that that gets sent out. [00:15:22] And then we use the rollover of the previous year's funds. [00:15:26] Now this revenue number, especially to our larger departments who have a lot of staff [00:15:34] and are looking at numbers, this number of 19 and almost 19.5 million, this is really [00:15:40] double the real number, and why that is is because of proceeds from bond issue, because [00:15:45] we're proposing to finance the acquisition of the 7631 US Highway 19 property, which [00:15:54] at this point I'm just, again, taking off the moratorium, Sean, the Riverside Inn property, [00:16:00] and then also Railroad Square. [00:16:02] So because those financing proceeds are anticipated and coming in as revenue, that's causing that [00:16:09] spike in revenue. [00:16:10] It's not real recurring revenue, it's one time as a result of financing. [00:16:13] So that's not the steady state budget. [00:16:15] The steady state budget is closer to 9 to 10 million. [00:16:20] You went through the personnel, and I won't stop there unless you have an issue, operating. [00:16:26] I just want to highlight in operating, hey, what stuff are we really doing? [00:16:31] Like your personnel and operating, that's the stuff you have to do just to keep the [00:16:34] lights on and stay open. [00:16:36] What are we doing? [00:16:37] Where's the action? [00:16:38] The action is in redevelopment incentives, and redevelopment incentives residential under [00:16:43] the operating budget, and that's where you see 1.24 million for redevelopment incentives. [00:16:49] That includes all of your grant and loan programs, and also your tax increment revenue [00:16:54] rebate programs like you have on the central and others. [00:16:58] And then redevelopment incentives residential. [00:17:01] That's where we want to help fund NICE, promote homeownership, get into the neighborhoods, [00:17:07] and of course evaluate all opportunities. [00:17:11] That number, you'll notice, was increased based on board discussion and no opposition. [00:17:17] So we were able to bring that up to 250 as part of balancing our budget. [00:17:25] In the capital projects, it's the same list that you saw before. [00:17:31] What's not shown there, the real difference is that Railroad Square, rather than being [00:17:35] funded by ARPA and the CRA, will be funded by the CRA. [00:17:38] And again, it's anticipated that a debt instrument will be used for the acquisition of Riverside [00:17:47] and also the completion of Railroad Square. [00:17:53] We do make a number of sizable transfers, and we make a transfer to the general fund [00:17:59] for general services. [00:18:02] These are for internal services that the CRA uses and that the general fund provides. [00:18:07] It's right that they be reimbursed. [00:18:09] In fact, I can make an argument, and often do, to the executive director slash city manager [00:18:14] that we should look at that going forward. [00:18:17] I'll put that on the list of things that she'll get me for later. [00:18:20] The transfer to the general debt service, and Crystal was kind enough to put a note [00:18:26] in there for the various debt instruments that we currently have on the books, and of [00:18:31] course that former SunTrust building, that's coming off after this year. [00:18:35] That other series, you know, with the series 2020, there was an A and a B. [00:18:40] There were two series to that, so we still have one left. [00:18:43] I think that we won't pay that off until 2030, 2031, somewhere around there. [00:18:49] Pop quiz, when does your CRA turn into a pumpkin? [00:18:52] 49. [00:18:53] 49. [00:18:54] Chair is an A student, that's right. [00:18:58] So you still have 18 years, even after you pay off that instrument, to keep going. [00:19:06] And then the CRA covers the operating of the garage that it funded. [00:19:12] And so obviously only a portion of that garage is offset by the contributions we talked about [00:19:17] earlier. [00:19:18] So this is your proposed fiscal year 25 budget, be happy to answer any questions that you [00:19:25] may have. [00:19:26] Do we have any public comment? [00:19:29] Seeing no one come forward, we'll bring it back for discussion and vote. [00:19:32] I'll move approval of the budget that's presented. [00:19:37] I'll wait a second. [00:19:40] Yeah, I think as was said, one most important thing was said is that you can't do it if [00:19:46] it's not in the plan, other than it being flexible. [00:19:49] I also want to make sure that, you know, what we're doing today is approving a budget, but [00:19:54] what we're going to be doing hopefully in the near future is identifying that plan, [00:19:59] whether it's waiting for the expansion of the district to happen at the same time, so [00:20:03] that we can include those projects that have been contemplated for behind the Starbucks, [00:20:09] or anything else. [00:20:10] But just two comments. [00:20:14] One related to seeing the Shretman property revitalization in the budget. [00:20:21] The year has already begun. [00:20:25] There has been a willingness from the Tampa Bay Regional Planning Council to help to work [00:20:31] on participating in the planning and envisioning of that. [00:20:36] They've got a lot of young, very enthusiastic folks who would love to work on that. [00:20:44] I talked to the city manager about it, I mentioned it before. [00:20:48] The more I think about it, it would be most appropriate if it was a city initiative, so [00:20:55] to the degree that, as we did with the Science Museum, we need some public input. [00:21:02] We do have money for the renovation of that, and I would like to suggest that we could [00:21:08] use that public agency who has shown some excitement about getting into 3D imagery and [00:21:14] identifying projects and opportunities to use that property, because I know that's still [00:21:19] a big discussion. [00:21:22] But in particular, the number of entities that have come and said they'd like to participate. [00:21:27] What would be the square footage? [00:21:28] Are they ready to start paying us some money for it? [00:21:33] The orchestra is still wanting to take some of the space that we're using out there at [00:21:37] the SunTrust building for their rehearsals. [00:21:41] The theater is going every day now and could use some additional space. [00:21:45] So I think that's a discussion we all want to have together again, and I think there [00:21:50] could be some good leadership by the Regional Planning Council at a greatly discounted from [00:21:55] going out to bid and figuring all that out to allow all those that are interested in [00:22:00] proposing putting their projects in. [00:22:04] And I would like to add that the Great Explorations Museum has still been approved by the state [00:22:13] to do a Discovery Center, and I'm more convinced than ever that the use of the river and the [00:22:21] idea of an outpost that can do research and help to protect our scallop beds and keep [00:22:27] track of the river quality, it's a very scientific effort that could be a great theme for our [00:22:34] young people as they, you know, get the opportunity. [00:22:38] So I would not see them in the Shreppman Building, but I would see them as potentially being [00:22:44] the lead of maybe an element of the site development that could be designed for the purposes of [00:22:52] it. [00:22:52] I think it would be a great draw to our city to bring that attention back to one of our [00:22:57] four pillars, and I think they have a lot of resources and money. [00:23:01] So I know I tend to get ahead of you guys in this design stuff, because I've got St. [00:23:08] Leo University that's saying, let me know, we want to come over and start cleaning up [00:23:11] the waterfront, and that want to go into the old biology class and start teaching marine [00:23:17] biology here. [00:23:20] And they're ready as soon as we let them know, but we have to put together the business plan, [00:23:25] the economic plan, to say, you know, everyone's saying it's going to cost us this much money [00:23:29] to fix it, or who's going to pay for it? [00:23:32] And to me, our library and our recreation department, and, you know, I'm pinning a lot [00:23:37] of hopes on this service tax, that there'll be some revenue that we can generate that [00:23:41] we don't know of, that'll be a new source of income to the city for its recreation as [00:23:47] well. [00:23:48] So I can't wait to share what I've been thinking about with you guys, so I can get your opinions, [00:23:55] and we can start to develop a, you know, some kind of a picture of what this could be for [00:24:00] the next hundred years as we're coming up on this one. [00:24:03] So I'll, I'll, can, Debbie, I think if it's all right, I'll get you back in touch with [00:24:08] Sarah again, or have her get in touch with you. [00:24:13] There's a resiliency effort to the whole project as well, as we look at what's happened to [00:24:19] the river. [00:24:20] The saltwater wedge is such a unique thing we have in our river. [00:24:24] The zipper on my golf bag won't turn in just one day of saltwater, so it's shot. [00:24:31] It's a minor little thing, but it just, the people that have told me how quickly and corrosive [00:24:36] the salt has been, you would know. [00:24:38] Come and look at my yard, and you'll see all the plants that have died already. [00:24:42] Oh, and in ours as well. [00:24:43] So understanding where we live and what makes it happen is really, I think it's the appropriate [00:24:51] time for us to, you know, to bring some excitement about what can come to with all of the problems [00:24:59] we have. [00:25:00] Anyway, the redevelopment plan, there's one other idea that could bring money to the city [00:25:08] and could be a CRA plan because it's not in our budget yet, and that's the Area Agency [00:25:13] on Aging. [00:25:14] I haven't followed up with you, but I know that you have met with or talked to the county [00:25:18] or are planning to have a visit with them at some point. [00:25:20] Yes, and there's a meeting schedule that's coming up. [00:25:23] Yeah, so if we had an adult daycare facility with the grant that Bill Arrakis and a number [00:25:31] of the, that that agency's got some $7 or $8 million and they're looking for the place [00:25:36] to put that, there's a private aspect to that as well that could bring some CRA dollars [00:25:45] into town. [00:25:46] So if there, if that meeting has some wheels on it, then it gets to the CRA director. [00:25:55] There's still time to put the concept of our community building by having adult daycare, [00:26:03] and I was devastated to know there was over 100, close to 200 people waiting for daycare [00:26:09] on that end of the spectrum. [00:26:12] So I think it would be a great, a great part of your great neighborhood comment to show [00:26:18] that we care for folks young and old. [00:26:23] Thank you. [00:26:24] Yeah, to the point of the pillars in the old historic Gulf High School building and how [00:26:28] it captures three of the four of them, if not all four of them, I see three of those [00:26:36] four pillars have been really developed and really activated, including our downtown. [00:26:40] We're starting to really focus in on our river now, too, through the resiliency efforts. [00:26:46] And now we're having the beginnings of what would be some more emphasis on our neighborhoods [00:26:50] and the historic piece comes from that old historic Gulf High School building, the modernization [00:26:55] of some areas near Leisure Lane, even US 19 corridor contributes to that historic, how [00:27:02] we can redefine our, excuse me, activate our historic neighborhoods. [00:27:07] And then that $250,000 piece that Mr. Horvath highlighted, that's starting fresh. [00:27:14] So we have $250,000 now to start a beginning of what could be taking that 10% incremental [00:27:22] increase and expanding that somewhat by finding niche areas or unique opportunities and innovative [00:27:29] grants to target and to improve our property values and the mobility of our homeowners. [00:27:36] And to the point of the mayor that he's made in the past, as it relates to renters, to [00:27:41] empower them to become homeowners or to at least system in some way where they can feel [00:27:47] confident in the home they currently live in and work towards making New Port Richey [00:27:51] a permanent home. [00:27:53] I am very excited for this community redevelopment agency's budget and what can be accomplished. [00:28:00] And I'm really looking forward to it. [00:28:03] Yes, I agree with both of you. [00:28:05] And I do have some ideas that I've talked to our city manager about for Schwetman too. [00:28:09] And I won't bring those up now, I'll bring those up at a later date when it's more appropriate. [00:28:13] But I think that there's a lot of great things we can do for our community there and making [00:28:17] that a center that we can be super proud of. [00:28:20] And that will bring in dollars from not only out of our area, but out of our state and [00:28:25] out of the country, and bring in dollars to our area, I think that will be beneficial [00:28:30] to everybody. [00:28:31] So. [00:28:32] All those in favor signify by aye. [00:28:35] Aye. [00:28:36] Those opposed. [00:28:37] 4-0. [00:28:38] Okay, proposed purchase and sale agreement for the 7631 U.S. 19.

   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. 4

   Proposed Purchase and Sale Agreement for 7631 US Highway 19

   approved

   The CRA Board considered approval of a Purchase and Sale Agreement to acquire the Riverside Inn property at 7631 US Highway 19 for $5.5 million to implement the adopted community redevelopment plan and create a North Gateway mixed-use waterfront destination. Staff (Mr. Horvath) presented extensive justification tying the acquisition to the city's master plans and adjacent Pasco County assemblage; a motion to approve as presented was made and seconded.

   • motion:Motion to approve the Purchase and Sale Agreement for 7631 US Highway 19 at $5.5 million as presented. (passed)

   📍7631 US Highway 19🏢Comfort Inn and Suites🏢Kaiser🏢Moffitt Center🏢Pasco County🏢Riverside Inn🏢Suncoast Motels🏢Whiskey River👤Mr. Horvath👤Sean Patel#2011 Plan#2019 Community Redevelopment Plan#Aqua Harbor#Downtown and US-19 Corridor Master Plan#Former Community Hospital redevelopment#Highway 19 Master Plan#Historic Gulf High School#Hurricane Helene#MPO#North Gateway#Rivergate Palm District#South Gateway#TDC (Tourism Development Council)

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   [00:28:46] As you know, this is a project that we've been working on for some time. [00:28:55] And Mr. Horvath will talk to you about some of the specifics of our proposed purchase [00:29:01] of the property. [00:29:04] Thank you, Madam Executive Director, Mr. Chair, members of the board. [00:29:07] Again, my apologies that circumstances are bringing a talk about future in this moment, [00:29:15] this present moment of need. [00:29:16] So again, I'm sorry if you're just catching this. [00:29:20] But this is the timing. [00:29:22] And so as the Executive Director correctly pointed out, this request for the board to [00:29:26] approve the purchase of 7631 U.S. Highway 19 for $5.5 million pursuant to a purchase [00:29:32] and sale agreement substantially in the form of attachment one for the purposes of implementing [00:29:37] the adopted community redevelopment plan. [00:29:39] This request has been in the works for years. [00:29:44] It's in your 2019 plan. [00:29:46] So by definition, year five going six years in, but we could look to the 2011 plan and [00:29:53] find kind of its genesis there. [00:29:56] So you've truly, truly been working on [00:30:00] on this for a long time. [00:30:02] It's a pleasure to be here presenting it to you, [00:30:04] even under the circumstances, [00:30:06] just because of the amount of time [00:30:07] that's involved in the potential of it. [00:30:09] This is the subject property at US-19 and the river. [00:30:14] You probably know it as Riverside Inn. [00:30:18] This map helps put it in context. [00:30:20] There's a lot going on in this area. [00:30:22] So this is part of what your downtown [00:30:25] and US-19 corridor master plan [00:30:27] identify as the North Gateway area. [00:30:31] But it's an area where the cities come together [00:30:34] along with the river. [00:30:35] So you have New Port Richey in green, [00:30:37] we're in yellow. [00:30:39] The subject property is red. [00:30:41] And what you're seeing with some of that other shading [00:30:44] is ownership. [00:30:45] So Pasco County has acquired property [00:30:49] in the area both to the south and the north. [00:30:52] And then you also have a Whiskey River development [00:30:56] that's been identified there. [00:30:59] That kind of is Pac-Manning the area [00:31:02] that's been acquired by Pasco County. [00:31:07] The key attributes of the subject property, [00:31:10] about 3.39 acres. [00:31:12] You have the total taxable value right now [00:31:15] at about 1.25 million. [00:31:18] Appraised value as is via the sales comparison approach. [00:31:23] By professional appraisal was 5.5 million. [00:31:27] The as is via income approach was lower, was 4.5. [00:31:32] It is a seven building, more or less motel property [00:31:34] consisting approximately, let's call it 35,500 square feet [00:31:40] and 150 rooms built in 86. [00:31:43] Currently highway commercial both in land use and zoning. [00:31:46] This again is in your adopted community redevelopment plan. [00:31:50] It's in the downtown U.S. 19 corridor master plan [00:31:54] specifically called for, specifically authorizes you [00:31:58] to consider acquisition. [00:32:03] So these are actual excerpts [00:32:05] from your various planning documents [00:32:07] including your adopted plan [00:32:09] and the sister documents that help form it. [00:32:13] So those are the concepts. [00:32:16] The keys are that the plan calls for mixed use development [00:32:21] and kind of again, the things that help make us us. [00:32:26] Architectural character, riverfront, [00:32:30] destination, mixed use. [00:32:33] So these are the concepts called for [00:32:36] by your adopted community redevelopment plan. [00:32:40] The purchase and sale agreement itself, [00:32:41] the purchase price as mentioned is 5.5 million. [00:32:44] The first deposit of 24,000 and change already been made. [00:32:49] With your approval, the second deposit of 275,000 [00:32:53] would be made within three business days. [00:32:55] There's a contingency period of 45 days [00:32:57] during which the agency can cancel for any reason. [00:33:01] The anticipated closing date is on or before December 16th. [00:33:05] Accommodations were made in the negotiation [00:33:08] and this proposal before you. [00:33:11] Most of the closing costs would be paid by the CRA [00:33:13] pursuant to section 17 [00:33:15] of the proposed purchase and sale agreement. [00:33:17] If necessary, additional security for the site [00:33:19] will be provided by the CRA due to the seller's choice [00:33:22] to cease motel operations and the operator [00:33:26] and owner of Suncoast Motels, [00:33:29] Sean Patel is here this evening. [00:33:31] I'll invite him up after the presentation [00:33:34] or of course you will, Mr. Chair. [00:33:38] So he's already submitted that request. [00:33:40] He's concerned about the welfare of the building. [00:33:44] Seller will be allowed to salvage materials [00:33:46] from the property and we didn't have an issue [00:33:48] making that recommendation to you [00:33:50] because we will be proposing its demolition [00:33:52] as soon as we acquire it. [00:33:55] Key considerations that went into staff's recommendation [00:33:58] is that the agency has been working [00:33:59] to acquire this property for years [00:34:02] in the hopes of creating a northern gateway [00:34:04] reflecting the city's character, vision and direction [00:34:07] and a special destination on the riverfront. [00:34:09] The property was not listed for sale [00:34:11] and actively marketed by the property owner. [00:34:13] So that dynamic went into negotiating this contract. [00:34:17] He didn't have to sell it. [00:34:18] He was kind of willing to [00:34:23] because maybe the executive director made him an offer [00:34:25] he couldn't refuse. [00:34:26] No, we had to find the win-win-win outcome, [00:34:29] a win for the property owner, [00:34:32] a win for the agency slash city [00:34:34] and most of all, a win for the community. [00:34:36] We think that we've done that. [00:34:38] Of course, it's subject to your determination. [00:34:41] We're recommending approval of this request [00:34:43] because it's directly supported by [00:34:45] and serves to implement the plan. [00:34:46] We're literally effectuating the plan. [00:34:49] The plan says you should think about doing this [00:34:51] and we're proposing to do it. [00:34:54] The site, especially in combination with Pasco County's [00:34:56] assembled property will accommodate [00:34:58] a transformative redevelopment project [00:35:00] that can turn an aging, sorry Sean, [00:35:03] aging roadside motel into a landmark waterfront [00:35:06] mixed-use destination that anchors [00:35:08] the city's north gateway area, [00:35:09] continues the expansion of the city's renaissance [00:35:11] out of downtown, advances the decades-in-the-making [00:35:14] revitalization of the U.S. Highway 19 corridor. [00:35:17] Remember, the county did the Highway 19 Master Plan [00:35:21] way before you did any of your latest master planning, [00:35:24] increases public access to the Gulf and River [00:35:27] and brings us closer to realizing our vision [00:35:29] for the future, which is the best walkable [00:35:30] waterfront historic hometown in Florida. [00:35:34] Continuing on, the anticipated redevelopment [00:35:36] would have a significant economic impact [00:35:38] on the community, including construction [00:35:40] and long-term direct, indirect, and induced jobs, [00:35:43] increased consumer base with above-average buying power, [00:35:46] tens of millions of dollars in private investment, [00:35:48] aggregate assessed value in excess of 50 million. [00:35:51] That's again being conservative. [00:35:52] Remember, right now it's valued at one and change, [00:35:55] so it's going to create $50 million increment [00:35:59] when you redevelop this, which is an important concept. [00:36:03] Increased tourism. [00:36:05] And so here again are those four pillars [00:36:07] and I just would like to connect this to the big picture. [00:36:10] So the four pillars, kind of the essence, [00:36:12] if you were just a planning consultant looking at the city, [00:36:15] hey, what makes NPR tick? [00:36:17] Downtown, historic neighborhoods, U.S. 19 corridor, [00:36:21] the river, and I'll just add that we're a city [00:36:23] of good neighbors, and that's being proven [00:36:25] by this latest disaster and Hurricane Helene, right? [00:36:28] So that's kind of what makes us us. [00:36:31] And through this process of redevelopment, [00:36:35] where you've had this great success over the last 10 years, [00:36:38] you know, you've had the luxury of reflecting, [00:36:41] man, why is so much going into downtown? [00:36:44] Well, downtown is, I'm just going to say it's your goose [00:36:47] that lays the golden eggs. [00:36:48] Your downtown is everyone's neighborhood. [00:36:52] This is, your downtown is your city's calling card. [00:36:56] It's a reflection of every neighborhood in the city. [00:36:59] So it's one way to reach everyone. [00:37:02] It's a unique selling proposition [00:37:04] and it's really a unique part of our charm. [00:37:07] It's kind of what makes us a Norman Rockwell painting. [00:37:09] And remember, for the people that don't know me, [00:37:11] I was born here in 74, so I got street cred on this. [00:37:16] Downtown, you've made it special again. [00:37:19] And that's the goose that lays the golden egg. [00:37:22] And there's this talk of, well, what's next? [00:37:25] Well, you've done it. [00:37:26] So you, it's never all the way done, it's a process, [00:37:30] but you've connected downtown to 19 [00:37:34] with Kaiser, Comfort Inn and Suites, [00:37:36] and some of the seeds you've planted [00:37:38] at the Rivergate Palm District. [00:37:39] And even though the Rivergate Palm District, [00:37:41] like everywhere else west of the river flooded, [00:37:43] we're going to come back. [00:37:45] We're going to make it happen. [00:37:45] We're going to meet this moment. [00:37:47] We're going to recover. [00:37:47] We're going to rebuild. [00:37:50] And those new buildings, by the way, did not flood. [00:37:53] All right? [00:37:54] So we walked every property between the river and 19 [00:37:58] the day after, and everything flooded [00:38:03] except for your new buildings. [00:38:05] Again, so coming up to proper elevation is important. [00:38:09] It's going to be an important part of our rebuilding effort. [00:38:11] But you've done it. [00:38:12] You've connected downtown to 19. [00:38:14] We've talked about Aqua Harbor [00:38:16] and what we've started there. [00:38:17] We have to follow through, [00:38:19] but you've planted the flag at the South Gateway and 19. [00:38:24] And so with this, now we're planting the flag [00:38:27] and we would be planting a flag with your approval, [00:38:30] redevelopment of the North Gateway. [00:38:32] So now you've anchored both the North and the South of 19, [00:38:38] funding it, coming out of the downtown. [00:38:40] Because remember, if you didn't create the value, [00:38:43] you could have never funded these other things, [00:38:45] but you're doing it. [00:38:46] What comes next? [00:38:48] Well, Historic Gulf High School might come next. [00:38:52] Maybe the former community hospital redevelopment. [00:38:55] Who's going to get there first? [00:38:56] Madam Executive Director, [00:38:58] we've got to figure out when we're going to get [00:38:59] that Historic Gulf High School from the school board. [00:39:02] Fingers crossed. [00:39:03] One of those things is going to pop really soon though. [00:39:07] And then you talked about it already. [00:39:10] What happened there? [00:39:11] Well, we're just highlighting Grand Boulevard and the river. [00:39:16] And Grand's really connected, right? [00:39:18] It's connected via Marine Parkway to Aqua Harbor. [00:39:21] Connects Aqua Harbor to the former community hospital site [00:39:24] and the renovated current Gulf High School. [00:39:27] And then that goes into downtown via Grand. [00:39:31] You could arguably draw that Grand all the way up [00:39:33] to the redevelopment of the North Gateway, right? [00:39:36] Through New Port Richey. [00:39:37] The mayor's always got, Mr. Chair's always got [00:39:39] his fellow mayor running mate out there in the audience. [00:39:44] So that connects to New Port Richey on Grand. [00:39:47] And then the river connects the whole city. [00:39:50] You can make inroads on 19 from where you've planted [00:39:55] your flag at the North, the South, and Main Street. [00:39:59] But then really, this is the huge point. [00:40:02] You talk about the order it had to go in. [00:40:05] Well, you have to kind of go in order of magnitude [00:40:07] because if you started with the single family homes, [00:40:09] you would have never created the tax increment [00:40:11] to fund redevelopment of the downtown. [00:40:13] But by starting with the downtown and working out, [00:40:15] you create the increment that you can get [00:40:17] to the four corners of your city map. [00:40:20] And so this is what's going to power [00:40:22] all this preceding redevelopment [00:40:24] and every step that you've taken, [00:40:25] cascades and it's cumulative in nature. [00:40:27] And it's actually, it's more than a line, it's a curve. [00:40:31] And where you get leverage, you get geometric growth. [00:40:35] That's what's now going to pour [00:40:38] into your historic neighborhoods [00:40:40] starting this year and beyond. [00:40:42] So all of this is working together. [00:40:45] And the thing is, though, about a golden goose, [00:40:48] and as you know, as elected officials, [00:40:50] you never get to stop doing what got you there. [00:40:54] In fact, the second you stop [00:40:56] training to be an Olympic champion, [00:40:57] you're no longer an Olympic champion. [00:40:58] So guys, even though we focus on these other things, [00:41:02] never lose sight of the golden goose. [00:41:05] And whatever you do, don't pluck your golden goose [00:41:10] and fry it and never take it for granted. [00:41:13] You got to continue to feed the golden goose, [00:41:15] let it do its thing, continuous improvement, [00:41:18] and then reinvest that into your other areas [00:41:22] so that they create additional tax increment [00:41:25] that you can reinvest in other areas. [00:41:27] But even though this is like a somber moment, [00:41:31] we're actively recovering from a hurricane, [00:41:34] I hope that you take heart [00:41:36] and the good work that you've done in 10 years. [00:41:39] And after we get through this moment, [00:41:40] like you've gotten through every other moment, [00:41:43] and we'll continue to get through these moments, [00:41:45] you got the bright future. [00:41:47] So it's hard for everyone to see, [00:41:49] especially when they don't have air conditioning, [00:41:51] electric, refrigeration, but we're going to get through this [00:41:55] and this is waiting for us on the other side, [00:41:57] a lot of good things. [00:42:01] So the budget, the fiscal impact, [00:42:03] the approval, the request would impose direct costs [00:42:06] equal the acquisition costs of 5.5 million [00:42:08] plus additional due diligence and closing costs. [00:42:11] This is in your proposed budget. [00:42:14] As previously mentioned, [00:42:15] it's anticipated this would be financed. [00:42:19] Next steps, there's a lot of them, and these are loaded. [00:42:22] I mean, some of them are easy, [00:42:25] but some of these are loaded. [00:42:27] So the easy ones are things like paying the deposit, [00:42:30] and even though it's work, [00:42:33] completion of the due diligence, [00:42:35] you close, you demolish, [00:42:38] but there's some moving pieces in here. [00:42:40] So the executive director has been doing a great job [00:42:42] of working with Pasco County, the county administrator, [00:42:46] and actually there have been some active [00:42:49] political elected leaders interested in this project also. [00:42:53] So the executive director has been doing a great job [00:42:55] in working that, but we'll have to now get serious [00:42:58] and go from conceptual conversations to actual framework [00:43:03] that would be negotiated and presented [00:43:05] to the respective legislative bodies. [00:43:07] There should, and my recommendation would always be [00:43:10] to carry out a community-driven master planning process [00:43:13] that engages all the stakeholders, [00:43:15] and you got a lot of them in this. [00:43:17] So you got the usual plus in this case, the county direct. [00:43:21] You got the city of New Port Richey [00:43:23] that you would probably want to include. [00:43:25] You got, on projects like this, [00:43:28] you should always include DEP, [00:43:30] any core water management district. [00:43:33] You want to include as many people as possible. [00:43:35] They might bring good ideas [00:43:36] and they might even bring money to the table. [00:43:38] So we should involve as many people as possible [00:43:41] to come up with a master plan. [00:43:43] And then after you have the master plan, [00:43:44] you have the basis for recruiting the private developers. [00:43:48] And remember, you should invite the private developers [00:43:50] to the master planning process [00:43:52] so that it's not just all pie in the sky planning ideas, [00:43:56] but it's actually actionable, bankable, [00:43:59] and could be done. [00:44:03] That's an RFP process or a public-private partnership [00:44:06] that's presented to you. [00:44:08] And then there has to be a negotiation [00:44:10] of a redevelopment agreement, [00:44:11] and then the redevelopment agreement gets carried out, [00:44:13] and that's a whole thing. [00:44:15] But then one day you get to celebrate the opening [00:44:17] of a landmark waterfront mixed-use destination. [00:44:20] So those are some of the next steps. [00:44:21] If you approve this, obviously we will be back [00:44:23] in front of you talking about it a lot [00:44:25] over the next year plus, [00:44:26] but the staff recommendation is to approve it, [00:44:29] and I'd be happy to take any questions. [00:44:32] Any public comment? [00:44:36] Seeing no one come forward, [00:44:37] we'll bring it back for discussion and vote. [00:44:39] I'll make the motion to approve as presented. [00:44:42] I'll second. [00:44:45] He's covered everything except that, [00:44:49] I want to just remind you that I was the president [00:44:52] of the junior high school when you were born. [00:45:00] certainly have risen to the level with the presentation and with the support of [00:45:07] the city manager and working with the county. It's crucial when you look at our [00:45:11] budget of the four million that's coming in from the county that they see us [00:45:16] doing projects that they also can be excited about and participate in because [00:45:22] that's going to help us on the tourism board, that's going to help us at the [00:45:26] MPO meetings, that's going to help us to to let them understand that people come [00:45:35] to cities, they don't say I'm going to Hillsborough County, they say I'm going [00:45:40] to Tampa or St. Pete or a beach or a small city. So I think that in our county [00:45:48] we've reached a turn where the county has grown so much with so much [00:45:53] revenue coming into them as well. The new Moffitt Center that's coming in, all [00:45:58] the things that are happening here, that we can engage them in celebrating [00:46:04] what we're doing and participating and so there's a lot of reasons to go [00:46:11] forward with this as well as keeping the boats from flying in when the rainstorms [00:46:16] come when they could be pulling their boat out at the boat ramp at the bridge [00:46:20] now and helping us to reconfigure the maritime activity as well. So [00:46:29] congratulations and I'm hoping, you know, looks like we're about to make this big [00:46:34] step. I'm excited to make it happen, public-private partnerships, TDC meeting,

   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. 5Communications▶ 46:39
5. 6Adjournment▶ 49:10
6. 2

   Approval of September 3, 2024 CRA Meeting Minutes

   Approval of the minutes from the September 3, 2024 CRA meeting.