Book 3 Page 31761 10/1/12 2:30 P.M. MINUTES OF THE SPECIAL SARASOTA COMMUNITY REDEVELOPMENT AGENCY MEETING OF OCTOBER 1, 2012 PRESENT: Chair Suzanne Atwell, presiding, Vice Chair Willie Shaw, Members Paul Caragiulo, Shannon Snyder and Terry Turner, Executive Director Thomas Barwin, Attorney Robert Fournier, and Secretary Pamela Nadalini ABSENT: None The meeting of the Community Redevelopment Agency (CRA) was called to order by Chair Atwell at 2:55 p.m. 1. APPROVAL RE: MINUTES OF THE SPECIAL COMMUNITY REDEVELOPMENT AGENCY MEETING OF MAY 21, 2012 (AGENDA ITEM CRA-1) Chair Atwell noted CRA consensus to approve the minutes of the Special CRA meeting of May 21, 2012. 2. REPORT RE: DOWNTOWN COMMUNITY REDEVELOPMENT AGENCY (CRAAB) ADVISORY BOARD REPORT OF JULY 11, 2012 (AGENDA ITEM CRA-2) Vice Chair Javier Suarez, Jr., Downtown Community Redevelopment Agency Advisory Board (CRAAB), Chief Planner Steven Stancel, Building and Zoning Division, Neighborhood and Development Services Department (NDS), came before the Commission. Mr. Suarez stated that at its July 11, 2012, meeting, the CRAAB received a presentation and discussed a proposed hotel development located at 1289 North Palm Avenue by Floridays Development Company (Floridays); that the tollowing issues were discussed in detail: The number of parking spaces in the Palm Avenue parking garage required by the development proposal, The arrangements between the City and the developer concerning the parking spaces, and The off-site improvements in excess of $1.2 million which would be the responsibility of the developer Mr. Suarez stated that following discussion, the CRAAB passed a motion by a 6-0 vote to recommend the CRA accept the proposal by Floridays for the development of the Palm Avenue site; that the CRAAB also voted to recommend the CRA not wait until October 2012 to issue the Request for Proposals (RFP) for the State Street parking garage but to move forward as quiçkly as possible, which passed by a 7-0 vote; that the RFP has been issued. A motion was made by Commissioner Snyder, seconded by Commissioner Caragiulo, and carried by a 5-0 vote to accept the report of the July 11, 2012, meeting of the Downtown Community Redevelopment Agency Advisory Board. 3. PRESENTATION AND DISCUSSION RE: PROPOSED PURCHASE OF SALE AGREEMENT BETWEEN THE CITY OF SARASOTA AND FLORIDAYS DEVELOPMENT CORPORATION FOR INVITATION TO NEGOTIATE (#11-73MT) FOR DEVELOPING A HOTEL AND MIXED- USE PROJECT ON A VACANT CITY PARCEL LOCATED AT 1289 NORTH PALM AVENUE. (AGENDA ITEM CRA-3) Chief Planner Steven Stancel, Building and Zoning Division, Neighborhood and Development Services Department (NDS), and Purchasing Manager Mary Tucker, Financial Administration Department, came before the Commission. Mr. Stancel referred to a summary sheet for the proposal by the Floridays Development Company (Floridays) for the Palm Avenue hotel site at 1289 North Palm Avenue and a proposed September 24, 2012, Purchase and Sales Agreement (Agreement) included in the Agenda backup and presented the following concerning the project: History Financial considerations Timeline Mr. Stancel stated that the City solicited Invitations to Negotiate for development of a hotel and mixed-use project on the vacant City-owned parcel at 1289 North Palm Avenue; that a Selection Committee chose Floridays, a Florida Corporation, as the preferred Development Team; that Floridays is proposing a 160- to 200-room boutique hotel with a minimum of 6,000 square feet of meeting space, a minimum of 6,000 square feet of ballroom space, a restaurant, a lounge and other amenities; that Staff has met several times with Floridays to negotiate the Purchase and Sale Agreement Summary Sheet. Mr. Stancel displayed slides of the site on the Chamber monitors and stated that preliminary and conceptual site plans for the hotel, a June 29, 2012, letter from Angus Rogers, President of Floridays, indicating no lawsuits or actions have been filed against Floridays in the past five years, a five-year proposed proforma for the project, a benefits analysis provided by the Development Team and a June 20, 2012, appraisal by James Hatin, MAI, SRA, Commercial Appraiser are included in the Agenda backup material; that the City will retain ownership of the parking spaces in the Palm Avenue parking garage; that the hotel will be charged the lowest market rate for parking spaces in the Palm Avenue parking garage; that additional parking spaces and rates can be negotiated for valet parking and parking for special events through a parking agreement; that Staff recommends the CRA review the project proposal and the proposed Agreement between the City and Floridays and make a recommendation to the Commission for further direction or action. City Attorney Fournier stated that certain changes are required to the Agreement as follows: 1. The lis pendens on the record regarding the Buck-Leiter lawsuit has been resolved and is no longer a factor. 2. Additional conditions precedents to closing Section 13 - Floridays will: waive the right to sue for damages if negotiations not successful hold the City harmless for any fees or costs acknowledge no contractual obligation to sign parking or redevelopment agreement Section 5 - The City will have an opportunity to cure any problem related to the title due to the Notice of Agreement which has been filed against the property. 3. Section 13(A) - Change the date for signature from November 6, 2012, to November 13, 2012. 4. Sections 2 and 13(C) = Clarify the hotel will be required to pay market rates for the use of the parking spaces. City Attorney Fournier stated that two additional issues will be addressed by the developer: assignment of ownership and classification of the hotel. In response to a comment from Commissioner Turner concerning periodic adjustments to the parking rates, City Attorney Fournier stated that the intent for periodic market rate adjustments can be clarified in the Agreement. Angus Rogers, President of Floridays Development Company, Brenda Patten, Attorney, Berlin-Patten Law Firm, and Michael Beaumier, Project Executive, Mills Gilbane, came before the Commission. Mr. Rogers stated that Sarasota has a rich resource with the arts community; therefore, Floridays decided the best use for the property is to deliver a boutique, life-style, arts-themed, four-star hotel which will incorporate the local attributes to become part of the fabric of Downtown; that Floridays delivers value for the price point; and described other projects developed by Floridays. Book 3 Page 31762 10/1/12 2:30 P.M. Book 3 Page 31763 10/1/12 2:30 P.M. Mr. Rogers displayed a video of the considerations incorporated in the development proposal on the Chamber monitors. Mr. Rogers stated that the hotel will be a wonderful experience for guests and will become an economiç driver for Downtown with over 150 full-time jobs and a half billion dollars of economic impact over the next ten years; that Floridays is seeking approval of the development proposal and is anxious to get to work. In response to a question from Commissioner Caragiulo concerning Section 3(F), concerning inspection, Mr. Rogers stated that the proposal would not have been submitted if problems arising from the inspection were anticipated. In response to a comment from Commissioner Caragiulo concerning the quality of the project, Mr. Rogers stated that the hotel will meet the standards of an upper up-scale hotel. In response to a question from Commissioner Caragiulo concerning the provision for assignment in the Agreement, Mr. Rogers stated that the intent is to construct and operate the hotel in the near term; however, assignment of interest may be possible in the long term. Attorney Patten stated that the following changes are proposed in the Agreement: 1. Section 2(A): Change the word "luxury" to "upper up-scale. 2. Sections 19 and 20 The President of Floridays agrees to remain a principal at least through construction of the hotel so the vision will be realized with review by the City Attorney. Attorney Patten stated that Floridays agrees with the suggestion the parking rates can be adjusted periodically based upon market rates. In response to a question from Commissioner Caragiulo concerning reimbursement for improvements, Attorney Patten stated that Section 13(B)(4) of the Agreement addresses reimbursement for improvements; that the specifics can be addressed in a redevelopment agreement. In response to a question from Commissioner Turner concerning any obstacles on the purchase of the adjoining property, Mr. Rogers stated no. In response to a question from Commissioner Turner concerning the amount to be paid for repurchase, Mr. Rogers stated that Floridays would have an expenditure of $100,000 plus permit and legal fees. In response to a question from Commissioner Snyder concerning an opening date, Mr. Rogers stated that al December 2014 opening date is anticipated. The following people spoke: Peter Fanning indicating the Downtown Sarasota Alliance (DSA) voted unanimously to support the project at the July 11, 2012, meeting. Paul Thorpe indicating the project is a wonderful opportunity to create an entranceway to the Downtown and should be approved to help the City's economic structure. Ernest Ritz indicating 234 people can be accommodated at the hotel per night or over 85,000 people per year at 60% occupancy resulting in an economic benefit of $9 million annually, property taxes, tourist taxes, and sales taxes will be generated, and the hotel should be built. A motion was made by Commissioner Caragiulo and seconded by Commissioner Snyder to approve the proposed September 24, 2012, Purchase and Sales Agreement with the four changes recommended by the City Attorney and the two changes proposed. by the Developer's Attorney and direct the City Attorney start the process for a development and parking agreement. Following discussion, Chair Atwell called for a vote on the motion which carried by a 5-0 vote. 3. ADJOURN Chair Atwelladjourned the meeting at 4:08 p.m. SUZANNE ATWELL, CHAIR A ST V OMOY oas PAMELA NADALINI, SECRETARY Book 3 Page 31764 10/1/12 2:30 P.M.