BOOK 46 Page 18317 06/02/99 5:00 P.M. MINUTES OF THE SPECIAL SARASOTA CITY COMMISSION MEETING OF JUNE 2, 1999, AT 5:00 P.M. PRESENT: Mayor Mollie C. Cardamone, Commissioners Albert F. Hogle, Carolyn J. Mason and Mary J. Quillin, city Manager David R. Sollenberger, Deputy city Auditor and Clerk Karen D. McGowan, and Michael A. Connolly, Attorney, City Attorney's Office ABSENT: Vice Mayor Gene M. Pillot PRESIDING: Mayor Cardamone The meeting was called to order in accordance with Article III, Section 9 (b) of the Charter of the City of Sarasota at 5:00 p.m. Deputy City Auditor and Clerk McGowan gave the Invocation followed by the Pledge of Allegiance. 1. DISCUSSION RE: FINANCING PLAN FOR LINKS PLAZA AND RELATED IMPROVEMENTS = APPROVED (AGENDA ITEM I) #1 (0030) through (1660) City Manager Sollenberger stated that the conceptual financing plan for Links Plaza and related improvements was previously estimated at $430,000; that the park portion of the budget consumed $315,000 with the remainder allocated to streetscaping including landscaping, old fashioned street lights and brick pavers on the Ringling Spur and Links Avenue; that since the original budget was developed, additional costs have developed as follows: $40,000 for streetscaping to which developer agreed as a condition of the vacation of the Ringling Spur right- of-way, and - $30,000 for architectural and planning services associated with an artist recommended by the Public Art Committee City Manager Sollenberger stated that additionally, the agreement between the City and the developer, Dr. Mark Kauffman, is similar to a development agreement rather than a public/private partnership agreement and requires the developer to pay the cost of undergrounding and relocating utilities as well as construction of the alley leading from the Ringling Spur to Links Avenue; that Links Plaza is an excellent example of a public/private partnership to facilitate development of downtown property on which development will be difficult; that the developer has determined the currently anticipated costs exceed the financial capacity of the project and is requesting relief; that Links Plaza presents an excellent opportunity to create a public space which will enrich the downtown experience and is consistent with the downtown redevelopment efforts. Gibson Mitchell, Director of Finance, William Hallisey, Director of Public Works, and Phillip Smith, Landscape Architect, David W. Johnson Associates, Inc., came before the Commission. Mr. Smith distributed several elevation renderings of the proposed Links Plaza and stated that the plaza area has three fountain elements; that surrounding the fountain areas are several seating areas offering both shade and sun exposures; that the fountains and sculpture elements of the plaza will attract people to view the fountains, sculpture and landscaping; that Ringling Spur and Links Avenue will have street and sidewalk treat tment similar to Main Street including but not limited to brick with sidewalk accents, vertical palms, small scale trees, ornamental lighting and irrigation. Mayor Cardamone asked the location of the public seating. Mr. Smith stated that the seating is located on the Main Street side of the fountains; that the seating capacity for the plaza will be approximately 50 pedestrians not including raised planter areas which will provide additional seating. Mayor Cardamone asked for clarification of the location of the fountain which will throw a ball composed of water. Mr. Smith stated that the fountain is located on the east side next to the Golfer sculpture which will be installed in the plaza. Commissioner Quillin asked the cost of the tountain? Mr. Smith stated that the cost is $70,000. Mr. Hallisey stated that the proposed plaza will require realignment of utilities and streets to comply with the City's Zoning Code; that the infrastructure upgrade will cost an estimated $306,000. Mr. Mitchell stated that the financing plan is as follows: Project Costs Links Plaza Park $387,692 Streetscape Enhancement 112,952 Infrastructure Upgrade/Relocation 305.941 Total Costs $806,585 BOOK 46 Page 18318 06/02/99 5:00 P.M. BOOK 46 Page 18319 06/02/99 5:00 P.M. Funding Local Option Sales Tax (L.0.S.T.) extension, also called the Penny Sales Tax: Links Park $261,500 Street Trees 20,800 $282,300 Gas Tax: Bridge/Culvert $ 51,485 Resurfacing 102,135 Eighth Street 33,800 $187,420 Tax Increment Financing (TIF) dollars: FY 98/99 Debt Service Reserve $84,569 FY 98/99 Excess Revenues 75,820 FY 99/2000 Excess Revenue Projection 44,866 $205,255 Donation by Dr. Kauffman $ 25,000 Public Art Fund 64,000 Utilities 42,610 Total Funding $806,585 City Manager Sollenberger stated that Dr. Kauffman has donated the Golfer sculpture which was purchased for $25,000; that most of the recommended Public Art funds are from other Dr. Kauffman projects; that the City will benefit from a park valued at $689,272 with construction costs of only $387,692; that other infrastructure investments total $418,893 which is a ratio leverage of 7.43 to 1 for a $3,114,000 building; that the project will create additional jobs downtown; that the City has an established history of public/private partnerships; that Dr. Kauffman has contributed $50,000 towards Links Plaza of which $25,000 is in cash and $25,000 is for the purchase of the Jack Dowd Golfer sculpture; that the land area of 16,484 square feet is being donated by Dr. Kauffman; that the estimated value of the land donation is $310,306; that the original construction cost estimates were $2.6 million and now are $3.1 million; that in the past, the City has paid for undergrounding of utilities in similar situations. Mark Kauffman, M.D., Joel Freedman, ACIP, Bishop and Associates, and Gary Hoyt, Gary B. Hoyt Architect, came before the Commission. Dr. Kauffman stated that the concept for Links Plaza began two years ago; that the project is a great one for the City; that the project will result in a personal financial loss; however, the goodwill generated will produce future dividends; that Links Plaza is designed to enhance the downtown area; that the existing infrastructure will require upgrading regardless of the status of the property's development; that having the City fund the ungrounding and relocation of utilities as well as construction of the alley from the Ringling Spur to Links Avenue will provide the necessary relief to make the project a realityi that the City is investing in the improvement of the downtown area. Mr. Hoyt stated that the building's design is a classic urban design; that currently a large open parking lot exists at the site; that the roadway contains confusing drives and right-turn- only lanes; that the proposed park area will eliminate the roadway and thus remove the right-turn lanes; that the proposed parking garage will provide the same parking capacity and contribute to the overall beautification of the downtown area; that the garage incorporates retail/commercial space on every side of the ground elevation; that barrel tile has been added to the project to keep the project in concert with the surrounding area as opposed to constructing a modern building; that marble has been added to the structure; that arches accented with marble are also being considered. Commissioner Hogle asked the street providing access to the parking garage? Mr. Hoyt stated that the entrance to the parking garage is on Links Avenue. Mayor Cardamone asked the number of public parking spaces provided? Dr. Kauffman stated that the design provides 144 parking spaces inside the garage; that additional angled parking spaces are proposed for the street; that 10 parking spaces will be located in the alley. City Manager Sollenberger stated that overall a net loss of one parking space is created. Commissioner Quillin stated that the City should upgrade the infrastructure while the area is under construction; that funding construction of a park is not supported; and asked if another funding source is available for the project? Mayor Cardamone stated that the question can probably be answered by the Administration; that the elevation renderings are welcome as none were previously available. Dr. Kauffman stated that a planned crosswalk was eliminated due to expenses escalating from $25,000 to $85,000. Commissioner Hogle stated that the plans as presented are unique and attractive. Mr. Freedman stated that the existence of retail space on all sides is important from a planning perspective; that most parking structures are dead space; that pedestrians will not know the BOOK 46 Page 18320 06/02/99 5:00 P.M. BOOK 46 Page 18321 06/02/99 5:00 P.M. parking facility exists as the parking structure will be integrated into the building. Mayor Cardamone asked if vehicle headlights and bumpers will be visible through the parking lot grids? Mr. Hoyt stated that greenery will be used to mask the parking facility and provide another benefit to the building. Mayor Cardamone stated that the County parking garage is the only attractive garage in the City; that the features of the County parking garage include a tower on top of the building; that the vehicles are not obvious and greenery has been incorporated on the exterior of the building. Dr. Kauffman stated that the County building is only a garage; that the proposed structure is a retail building with parking facilities contained within the structure. Mr. Hallisey stated that the original estimate for the park was $315,000; that the revised estimate is $398,000 which includes approximately $25,000 as contingency funds; that cost cutting is required and anticipated; that Staff is working with Dr. Kauffman to find solutions; that excavation for the park is required; that the area requires new curbs, new hardscape, and the installation of street trees and furniture; that the demolition alone to remove all the existing material at the site and grade the location will cost approximately $30,000; that other costs include drainage in addition to the drainage associated with the utilities; that large items required are: street furniture, accent palms, and large specimen palms with a height to complement the parking structure to make the scale of the entire project compatible and attractive; that Staff hopes the project will be under budget. Commissioner Quillin stated that the park project will cost over $750,000; and asked the cost for infrastructure versus the park and the source of the cost estimates? Mr. Hallisey stated that three elements compose the project; that the approximate cost of each element is $397,000 for the park, $113,000 for the streetscape including the enhancements to the area around the park and $306,000 for the infrastructure upgrade. Mayor Cardamone stated that a concern is if the fountain will actually throw a ball rather than a spout of water; that the interest created by the ball of water will draw people to the park; and asked if the fountain will work correctly? Mr. Freedman stated that the creator of the patented fountain process indicated the fountain will work correctly. Commissioner Quillin stated that a fountain which spits water over the people's heads in a high use pedestrian park is a concern; that a more passive fountain may be safer and cost less to install. Paul Thorpe, 1818 Main Street (34236), Executive Director, Downtown Association of Sarasota, Inc., came before the Commission and stated that the project is endorsed by the Downtown Association of Sarasota, Inc. (Downtown Association); ; that the project will be an asset to the area; that Dr. Kauffman's other development projects historically have been of value to the City; that the Links Plaza project will have old fashioned street lights as part of the streetscape; that citizens continue to contact the Downtown Association with questions regarding the installation of additional street lights to illuminate the entire Main Street. City Manager Sollenberger stated that the City intends to have old fashioned street lights installed the entire length of Main Street. Mr. Thorpe stated that a financial institution has expressed interest in assisting the City with funding the installation of street lights on Main Street; that the project will create an incentive for addition development projects on Main Street. Commissioner Quillin stated that the improvement of the infrastructure in the proposed Links Plaza area of downtown is supported; however, funds expended for the Links Plaza project can reduce funds available for other projects; that funding used for the proposed Links Plaza project could be used to enhance the Rosemary District; that the project could be accomplished in phases with grant funds. Commissioner Mason stated that the understanding was other areas of the City would not be adversely affected by the proposed Links Plaza project; and asked for clarification. City Manager Sollenberger stated that no other projects or areas of the City will be adversely affected by the proposed Links Plaza project; that the Administration recommends approval of the revised financing plan for Links Plaza, the streetscape and related improvements. On motion of Commissioner Hogle and second of Commissioner Mason, it was moved to approve the revised financing plan for Links Plaza, the streetscape and related improvements. Motion carried unanimously (4 to 0): Hogle, yes; Mason, yes; Quillin, yes; Cardamone, yes. 2. ADOPTION RE: PROPOSED RESOLUTION NO. 99R-1187, APPROPRIATING $160,389 FROM THE TAX INCREMENT FINANCING (TIF) FUND TO PARTIALLY FUND IMPROVEMENTS AT LINKS PLAZA = ADOPTED (AGENDA ITEM II) BOOK 46 Page 18322 06/02/99 5:00 P.M. BOOK 46 Page 18323 06/02/99 5:00 P.M. #1 (1660) through (1667) Gibson Mitchell, Director of Finance, came before the Commission and stated the proposed Resolution No. 99R-1187 is an appropriation to partially fund improvements at Links Plaza; that the source of funding is the Tax Increment Financing (TIF) fund. Commissioner Quillin asked if repayment totals could appear on financial reports? Mr. Mitchell stated that normally the totals appear on reports; however, due to time restraints, totals were erroneously omitted. Deputy City Auditor and Clerk McGowan read proposed Resolution No. 99R-1187 in its entirety. On motion of Commissioner Mason and second of Commissioner Hogle, it was moved to adopt proposed Resolution No. 99R-1187, appropriating $160,389 from the Tax Increment Financing (TIF) fund to partially fund improvements at Links Plaza. Mayor Cardamone requested that Deputy City Auditor and Clerk McGowan proceed with the roll-call vote. Motion carried unanimously (4 to 0): : Cardamone, yes; Hogle, yes; Mason, yes; Quillin, yes. 3. APPROVAL RE: AUTHORIZE MAYOR AND CITY AUDITOR AND CLERK TO EXECUTE THE LOAN AGREEMENT BETWEEN THE CITY OF SARASOTA AND THE COMMUNITY REDEVELOPMENT AGENCY CRA) TO CONSTRUCT A PARK, TO BE KNOWN AS LINKS PLAZA, BETWEEN MAIN STREET AND RINGLING BOULEVARD AT LINKS AVENUE IN THE AMOUNT OF $250,830 - APPROVED (AGENDA ITEM III) #1 (1767) through (1870) Gibson Mitchell, Director of Finance, came before the Commission and stated that debt service payments and the loan required shall be easily accomplished if the Links Plaza project is developed as proposed; that the loan will be an investment in the City. On motion of Commissioner Hogle and second of Commissioner Mason, it was moved to authorize the Mayor and City Auditor and Clerk to execute the loan agreement between the City of Sarasota and the Community Redevelopment Agency (CRA) to construct a park to be known as Links Plaza between Main Street And Ringling Boulevard at Links Avenue in the amount of $250,830. Motion carried unanimously (4 to 0): Hogle, yes; Mason, yes; Quillin, yes; Cardamone, yes. The City Commission recessed and reconvened into a Special session as the Community Redevelopment Agency at 5:40 p.m. The Community Redevelopment Agency adjourned and reconvened into the June 2, 1999, Special Commission meeting at 5:55 p.m. 4. APPROVAL RE: AUTHORIZE THE CITY MANAGER TO EXECUTE THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SARASOTA AND DOWNTOWN ASSOCIATION OF SARASOTA, INC. PERMITTING DOWNTOWN ASSOCIATION INTERIM USE OF THE SOUTHERN PORTION OF LEMON AVENUE MALL - APPROVED WITH A REVIEW OF THE AGREEMENT IN 90 DAYS (AGENDA ITEM IV) #2 (0012) through (1290) V. Peter Schneider, Deputy City Manager, came before the Commission and stated that the Downtown Association of Sarasota, Inc., has requested an agreement for the interim use of the southern portion of the Lemon Avenue Mall; that at the May 17, 1999, Regular Commission meeting, Paul Thorpe, Executive Director of the Downtown Association of Sarasota, Inc. (Downtown Association), requested interim use of the property; that the Commission by consensus agreed with the concept and referred the matter to the Administration for disposition; that Staff subsequently met with Mr. Thorpe to discuss the details of the proposed use as follows: Beer and wine service provided Food service provided Hours of operation: 5 p.m. to 11 p.m. Fridays 7 a.m. to 11 p.m. - Saturdays Security provided Bathroom facilities maintained Standard liability insurance coverage indemnifying the City provided Rent not charged Mr. Schneider stated that beer and wine service has presented problems in the past and should be considered very carefully; that the Administration has some reservations about the recommendation; that Staff suggests the following conditions should apply if the Commission agrees to the general terms: The City retains the right to unilaterally terminate the Memorandum of Understanding by written notice. The Downtown Association is responsible for repairing any equipment, furnishings or fixtures on the premises if damaged or broken during operation. Management or Staff responsibilities will not be provided by the City as part of the agreement Marcia Dahlquist, 1050 24th Street (34234), came before the Commission and stated that having lived in most major cities in America, all have public entertainment; that the City had a unique situation with the Lemon Avenue Mall; that the lack of public entertainment in the area is a loss for the City; that the BOOK 46 Page 18324 06/02/99 5:00 P.M. BOOK 46 Page 18325 06/02/99 5:00 P.M. difference between four month ago and now in the downtown area is significant; that people should be drawn to the area with nightly reasonably priced events; that crime may be reduced with people in the area. Thomas Rossa, 1490 1st Street (34236), representing the West End Grill, came before the Commission and stated that the idea of opening the area is supported; that business in the area will benefit from the events; that several concerns do exist with the project: 1) the Downtown Association may not have the expertise to manage the proposed use, 2) not having to pay rent provides an unfair competitive advantage to the Downtown Association as the West End Grill pays prime property rent, 3) having the project open on Fridays and Saturdays will draw patrons from established businesses in the already slow off-season trade, and 4) a concern exists as to the utilization of any profits. Paul Thorpe, 1818 Main Street (34236) Executive Director, Downtown Association of Sarasota, Inc., came before the Commission and stated that the Downtown Association has been involved with the Lemon Avenue Mall since original construction in 1976; that serving beer and wine with proper controls is supported; that with proper management and a police presence, the area can be an attraction for people; that on June 6, 1999, a event will be held to evaluate the potential and problems with having the area open to the public for entertainment; that the entertainment will be non-amplified now and in the future; that maintenance of the park will be provided; that a management team will be hired to run the project; that a rental fee would be possible; that any profits go to the Downtown Association for use in the City for Christmas decorations, flags on national holidays, events such as fireworks and other non-profit events; that the expected income is to cover the operating expenses of the project with enough funds left to fund other items in the City. Commissioner Hogle asked if a 90-day limit on the agreement would be acceptable to the Downtown Association? Mr. Thorpe stated yes; that other concerns are the use of a portable iron fence to allow park use during the daytime and the control of evening events. Mayor Cardamone stated that the project will be operated for a trial period with the Administration's having the ability to cancel the agreement with 24-hour notice. Commissioner Quillin stated that the project should require a Request for Proposal (RFP) to move forward; that the original request from the Downtown Association was for permission to hold special events in the park; that selling beer and wine was not mentioned; that the public restrooms are not available for the use of vendors and patrons of the Farmers' Market on Saturday mornings; that the water is not turned on even if the bathroom facilities are open; that cleaning the facilities will cost approximately $90 to $100 per month including cleaning supplies for Saturday service; that the Farmers' Market vendors are charged a fee and should receive restroom cleaning service. Mr. Thorpe stated that the services provided are liability insurance, permits, advertising and management of the market. Commissioner Quillin stated that the project as currently presented is not supported; that an RFP should be part of the process; that perhaps a partnership with another entity can be found. Mr. Thorpe stated that June and July are very active months; that the Downtown Association would like some events to take place; that an RFP would mean a six-month delay. City Manager Sollenberger stated that the arrangement is a temporary one; that an RFP would be required at the time the City decides to acquire a permanent tenant; that the City is not in a position to develop an RFP; that the issue of the ownership of a five-foot portion of the Lemon Avenue Mall is unresolved; and asked if the Downtown Association would open the restroom facilities on Saturday mornings for the convenience of the Farmers' Market patrons and vendors. Mr. Thorpe stated that the request and the Administration's recommendation will be brought to the Board of Director of the Downtown Association Commissioner Quillin stated that the issue of the restrooms has been brought to the attention of Staff who has advised the restrooms will be open for Saturday, June 5, 1999; that Staff was of the impression the restrooms were already open on Saturdays. Mr. Thorpe stated that the water has not been turned on. Commissioner Quillin stated that no one was previously aware the water was not turned on. Mayor Cardamone stated that the Farmers' Market has been attended almost every Saturday for years; that a complaint has never been heard; that the food service operations in the area have always been accessible; that tables are apparently stored in the restrooms; and asked for clarification of the plans to open the restrooms. Commissioner Quillin stated that a locker room has a stage stored inside. BOOK 46 Page 18326 06/02/99 5:00 P.M. BOOK 46 Page 18327 06/02/99 5:00 P.M. Mr. Thorpe stated that the stage which was purchased by the Downtown Association has been stored for years in the locker room; that the focus of the request is to have a downtown event. Commissioner Mason asked the term of the agreement? Attorney Connolly stated that the agreement includes the ability to terminate without cause with 24-hour notice. Commissioner Hogle stated that the project is supported. Commissioner Quillin stated that the sale of beer and wine by the Downtown Association is not supported; that the project will detract from other established commercial operations; that the agreement should include having the restroom facilities open for the Farmers' Market; that special functions sponsored by the Downtown Association are supported. Commissioner Hogle stated that increased traffic from the project will have a positive effect on the entire the Downtown area. Mayor Cardamone stated that from a retail perspective, large crowds are good for business due to the spill-over effect" of people shopping after an event. Mayor Cardamone restated the motion as to: 1) approve the request of the Downtown Association to operate the Lemon Avenue Mall on Fridays and Saturdays as indicated in the Memorandum of Understanding and 2) review the agreement at the end of 90 days. Motion carried (3 to 1): Hogle, yes; Mason, yes; Quillin, no; Cardamone, yes. 5. ADJOURN (AGENDA ITEM VII) #2 (1291) There being no further business, Mayor Cardamone adjourned the Regular meeting of June 6, 1999, at 6:36 p.m. CCad MOLLIE C. CARDAMONE, MAYOR ATTEST a KARENAD. MCGOWAN, DEPUTY CITY AUDITOR AND CLERK