MINUTES OF THE SPECIAL SARASOTA COMMUNITY REDEVELOPMENT AGENCY MEETING OF NOVEMBER 15, 2010 PRESENT: Chair Kelly M. Kirschner, presiding, Vice Chair Fredd "Glossie" Atkins, Members Suzanne Atwell, Richard Clapp, and Terry Turner, Deputy Executive Director Marlon Brown, Attorney Robert M. Fournier, and Secretary Pamela M. Nadalini ABSENT: None The meeting of the Community Redevelopment Agency (CRA) was called to order by Chair Kirschner at 2:59 p.m. 1. APPROVAL RE: MINUTES OF THE SPECIAL COMMUNITY REDEVELOPMENT AGENCY MEETING OF OCTOBER 18, 2010 (AGENDA ITEM CRA-1) Chair Kirschner noted CRA consensus to approve the minutes of the Special CRA meeting of October 18, 2010. 2. REPORT RE: COMMUNITY REDEVELOPMENT AGENCY ADVISORY BOARD'S REGULAR MEETING OF OCTOBER 28, 2010 (AGENDA ITEM CRA-2) Dale Parks, Chair CRA Advisory Board, and Chief Planner Steven Stancel, Neighborhood and Development Services Department, came before the Commission. Mr. Parks gave the following report of the actions taken at the October 28, 2010, CRA Advisory Board meeting: Pineapple Square Development - motion passed unanimously to approve Development Agreement Application No. 10DA-01 with the deletion of Section 4 which requires the construction of a parking garage within a four-year period and Palm Avenue Parking Garage Retail Space the following motions passed unanimously to recommend the CRA: Sell rather than lease the retail space, Provide and identify the required number of parking spaces according to the Zoning Code (2002 Edition) (Zoning Code), Exclude the small retail space located behind the elevators from any restrictions imposed on retail spaces with a frontage on South Palm Avenue, Advertise the sale of the 12,000 square foot retail space with a frontage on South Palm Avenue in increments of 1,600 square feet, Restrict the use of the 12,000 square foot retail space with a frontage on South Palm Avenue to either retail or restaurant as defined by Staff, Allow the waiver of any deed restrictions by a super-majority vote of the Commission, and Provide any deed restrictions shall be in effect for ten years. A discussion ensued concerning the number of required parking space, the small retail space proposed to be excluded by use restrictions, the reason a separate contract is not prepared for the developer's right to use the State Street Parking Lot. Chair Kirschner stated that an item concerning the Pineapple Square Development will be placed on the Agenda of the December 6, 2010, Regular Commission meeting. BOOK 3 Page 31718 11/15/10 2:30 P.M. BOOK3 Page 31719 11/15/10 2:30 P.M. A discussion ensued concerning the cost and location of the required parking spaces allocated with the sale of the retail space. A motion was made by Member Clapp, seconded by Vice Chair Atkins, and carried by a 5-0 vote to receive the report of the October 28, 2010, CRA Advisory Board Regular meeting. 3. REPORT RE: DISPOSITION OF THE PALM AVENUE MIXED-USE GARAGE RETAIL SPACE, 1289 NORTH PALM AVENUE (AGENDA ITEM CRA-3) Purchasing Manager Mary Tucker, Financial Administration Department, and Chief Planner Steven Stancel, Neighborhood and Development Service Department, came before the CRA. Mr. Stancel stated that the two primary questions which must be answered are whether the retail space should be sold or leased and what is the best process to sell or lease the retail space; that the actual square footage of the Palm Avenue Parking Garage is 11,400 square feet with 10,722 square feet of net leasing space; and gave a presentation concerning the mixed-use parking garage in the City of Punta Gorda, Florida. Mr. Stancel stated that Staff continues to believe the retail space should be sold; that the retail space should be sold in the entirety to one buyer rather than incrementally to multiple buyers; that Staff recommends the issuançe of a Request for Proposals (RFP) rather than an invitation to bid if the retail space is sold incrementally to allow more flexibility. Ms. Tucker stated that an invitation to negotiate can also be used to negotiate the sale or leasing of the retail space. Mr. Stancel stated that Staff specifically recommends the CRA request the Commission to direct Staff develop an invitation to bid and return with a subsequent negotiated contract for the purpose of selling the retail space with the following conditions: The City obtain an updated appraisal outlining the estimated value per square foot for the retail space, The invitation to bid shall include the appraisal, City's cost, or any other amount not yet determined as the required minimum bid, Deed restrictions be provided to require all potential users be retail or restaurant establishments as will be defined in the invitation to bid as establishments selling goods and/or food, Deed restrictions shall indicate the Commission has the right to waive the requirement for retail use in the future by a supermajority vote following the receipt of a proposal outlining the alternate use of space, and The identified deed restrictions shall expire at the end of the ten-year period from the date of the property closure. A discussion ensued concerning the current design of the retail space being appropriately equipped for a restaurant and the possible placement of garbage in the rear of the establishment by the tenants. The following people spoke: John Harshman indicating the City should sell the retail space and recommending the retail space be advertised for sale in increments rather than as a whole. Lee DeLieto indicating the City should sell the retail space rather than lease and now is the opportunity for a buyer to obtain financing. lan Black indicating the City should sell the retail space and one space with a frontage on South Palm Avenue should be 3,500 square feet. Eileen Hampshire indicating the high standards of the group she represents which is seeking to purchase the entire retail space, inquiring the reason the City had front and back doors installed if the plan was to sell the retail spaces in increments, requesting the CRA require the retail spaces be owner occupied, and indicating she would like to see Palm Avenue remain known as the street of the arts. A discussion ensued concerning controlled tenancy, the consideration of lease-options for the retail space, the difference between an invitation to bid and an invitation to negotiate, the inclusion of a minimum price in the invitation to negotiate, and the other types of businesses people would like to see in the retail space based on a survey previously conducted. Mr. Stancel stated that the invitation to negotiate or Staff's proposal can be presented to the CRA for review prior to issuance if desired. Chair Kirschner gave a report of the recently held Economic Development Corporation meeting, specifically, the desire of Mote Marine Laboratory and Aquarium (Mote Marine) to open a local fish market in Sarasota, possibly at the Palm Avenue Parking Garage location. A discussion ensued concerning considering the opening of a local fish market by Mote Marine in a space located on the first floor of the Palm Avenue Parking Garage. A motion was made by Commissioner Turner to direct Staff to prepare an invitation to negotiate to sell the retail spaces in the Palm Avenue Parking Garage on an incremental basis or as a whole, set a minimum price as the higher of a recent, new appraisal and the City's cost, and prepare the criteria outlining the types of buyers for Commission approval, provide deed restrictions for ten years, and not provide an option for a supermajority vote to override the deed restrictions, which died for lack of a second. A motion was made by Member Clapp, seconded by Member Turner, and carried by a 3-2 vote with Chair Kirschner and Member Atwell voting no to direct Staff develop an invitation to bid and return with a subsequent negotiated contract for the purpose of selling the retail spaces as identified in the Palm Avenue Mixed-Use Garage Plan with the conditions previously mentioned including setting the minimum price as the higher of appraisal or City's cost. 4. ADJOURN Chair Kirschner adjourned the meeting at 3:55 p.m. KÉLLY M. KIRSCHNER, CHAIR ATTEST Dwva PAMELA M. NADALINI, SECRETARY BOOK3 Page 31720 11/15/10 2:30 P.M.