Book 3 Page 31803 04/21/14 2:30 P.M. MINUTES OF THE SPECIAL SARASOTA COMMUNITY REDEVELOPMENT AGENCY MEETING OF APRIL 21, 2014 PRESENT: Chair Shannon Snyder, presiding, Vice Chair Willie Shaw, Members Suzanne Atwell, Paul Caragiulo, Susan Chapman and 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 Snyder at 2:50 p.m. 1. APPROVAL RE: MINUTES OF THE SPECIAL COMMUNITY REDEVELOPMENT AGENCY MEETING OF MARCH 3, 2014 (AGENDA ITEM CRA-1) Chair Snyder noted Community Redevelopment Agency (CRA) consensus to approve the minutes of the Special CRA meeting of March 3, 2014. 2. APPOINTMENT RE: NEWTOWN COMMUNITY REDEVELOPMENT AGENCY ADVISORY BOARD (CRA-2) Secretary Nadalini stated that one vacancy exists on the Newtown Community Redevelopment Agency Advisory Board (NCRAAB) due to the resignation of Victor Johnson who held the seat designated for an owner of land within the redevelopment area; that one application was received from Fredd "Glossie" Atkins which is included in the Agenda backup material. A motion was made by Vice Chair Shaw, seconded by Member Caragiulo, and carried by a 5-0 vote to appoint Fredd "Glossie" Atkins to the Newtown Community Redevelopment Agency Advisory Board (NCRAAB). Chair Snyder announced and congratulated Fredd "Glossie" Atkins on his appointed to the Newtown Community Redevelopment Agency Advisory Board (NCRAAB). 3. REPORT RE: NEWTOWN COMMUNITY REDEVELOPMENT AGENCY ADVISORY BOARD 'S SPECIAL MEETING OF MARCH 12, 2014, JOINT SPECIAL MEETING OF THE DOWNTOWN AND NEWTOWN COMMUNITY REDEVELOPMENT AGENCY ADVISORY BOARDS OF MARCH 20, 2014, REGULAR MEETING OF APRIL 3. 2014, AND SPECIAL MEETING OF APRIL 8, 2014 (AGENDA ITEM CRA-3) Mark Huey, Chair, Newtown Community Redevelopment Agency Advisory Board (NCRAAB), and General Manager Lorna Alston, North Sarasota Redevelopment Office (NRO), Neighborhood and Development Services (NDS) Department, came before the Community Redevelopment Agency (CRA). Ms. Alston stated that at the March 12, 2014, Special NCRAAB meeting the Board elected Mark Huey as Chair and Shelli Freedland-Eddie as Vice Chair. Mr. Huey stated that the NCRAAB held three meetings since last coming before the CRA Board; that at the March 12, 2014, Special NCRAAB meeting, the NCRAAB reviewed the Newtown CRA Redevelopment Plan and strategies which are either in progress, on-going, or not being pursued; that after review, the strategies were prioritized and specific projects were recommended; that Staff was directed to focus on further research of the estimated cost associated with each project and to prepare a written report for the April 3, 2014, Regular NCRAAB meeting; that the following proposed projects were identified: 1) Roadway Improvements for the Martin Luther King (MLK) Jr. Way corridor 2) Marian Anderson Place site development 3) Review of the Newtown CRAI Redevelopment Plan Mr. Huey stated that on March 20, 2014, a Joint Special meeting of the Downtown and Newtown CRA Advisory Boards was held to discuss the progress of the Downtown Community Redevelopment Area Extension Committee; that both Boards voted unanimously to accept the proposed recommendations of the Downtown Community Redevelopment Area Extension Committee; that at the April 8, 2014, Special meeting the NCRAAB reviewed and discussed the Priority Projects 2014/15 Report for Tax Increment Financing (TIF) funds for the City's Capital Improvement Program (CIP), along with reviewing a separate list of potential site plan areas; that the NCRAAB voted unanimously to accept the Priority Projects 2014/15 Report and requested Staff continue to prioritize the list of other potential sites with funding up to $5 million; that at the April 3, 2014, Regular NCRAAB meeting, the NCRAAB met without a quorum to receive and accept a presentation by the Financial Administration Deputy Director regarding the March 31, 2014, Financial Report which reflected a reduction of TIF funds in the Newtown CRA proposed budget since the December 31, 2013 report; that the NCRAAB also had a report on resetting the base year for the determination of TIF funds collected within the Newtown CRA area which is scheduled on today's City Commission Agenda for public hearing; that the NCRAAB is supportive of whatever decision is made by the CRA concerning the proposed State Street Parking Garage and Mixed-Use Project and recommends to hold harmless the Newtown CRA TIF funds; that the NCRAAB also received a request from the Robert L. Taylor Community Center (RLTCC) Manager to approve TIF funds in the amount of $24,000 to employ seven youths for the Counselor-in-Training (CIT) Program; that the NCRAAB voted unanimously to recommend approval of the funding of $24,000 and to include an additional $9,000 if non-City funds are not secured to employ two additional youth counselors for a combined total of $33,000. In response to a question and comments from Chair Snyder asking about the received and accepted presentation to the NCRAAB by the Financial Administration Deputy Director at the April 3, 2014, Regular NCRAAB meeting; that the minutes in the CRA. Agenda backup material indicates no quorum was present; however, the meeting proceeded; that concerns exist regarding actions, if any, taken by the NCRAAB and any necessity to cure prior to the CRA's taking action, Attorney Fournier stated that after reviewing the minutes, the belief is no action was not taken. City Auditor and Clerk Nadalini stated that she discussed the concern regarding the April 3, 2014, Regular NCRAAB meeting with the Deputy City Attorney; that an effort was made to contact the NRO General Manager to no avail; that no quorum was present; however, action was taken as the result of a Change to the Order of the Day which allowed for receipt of the March 31, 2014, Financial Report reflecting a reduction of TIF funds in the Newtown CRA proposed budget since the December 31, 2013 report, along with a report concerning resetting the base year for determination of TIF funds collected within the Newtown CRA area; that an item concerning resetting the base year is set for public hearing before the City Commission today; that the minutes reflected the reports as being received which is taking action with all the other Agenda items being tabled. In response to a question from Chair Snyder asking if the Financial Administration Deputy Director presented the reports again at the April 8, 2014, Joint Special meeting of the Downtown and Newtown CRA Advisory Boards, Mr. Huey stated no. Discussion ensued about the concern regarding action made by City Staff to table all other Agenda items at the April 3, 2014, Regular NCRAAB meeting with the exception of receiving the report from the Financial Administration Deputy Director and the necessity to cure the problem by having the item re-presented by the Financial Administration Deputy Director to the NCRAAB with a quorum present. Deputy City Attorney Michael Connolly, City Attorney's Office, came before the Commission and stated that discussions with the City Auditor and Clerk and the Deputy City Auditor and Clerk indicated a problem as the result of action being taken by City Staff before a partial Board; that reporting the outcome of the April 3, 2014, Regular NCRAAB meeting at the next scheduled NCRAAB meeting is problematic since the process has been tainted. Book 3 Page 31804 04/21/14 2:30 P.M. Book 3 Page 31805 04/21/14 2:30 P.M. Discussion ensued about the potential possibility of other Agenda items on the April 3, 2014, Regular NCRAAB meeting being tainted which is hard to determine since the minutes are sparse, and if the other NCRAAB meetings held would also be tainted as the result of the April 3, 2014, Regular NCRAAB meeting. In response to a question from Attorney Fournier asking if subsequent action was taken as the result of the reports presented by the Financial Administration Deputy Director, Mr. Huey and Ms. Alston stated yes. Attorney Fournier stated that taking subsequent action without a quorum present is problematic; that the NCRAAB should have the Financial Administration Deputy Director re-present the reports with a quorum to receive the reports and take action. Deputy Attorney Connolly stated that in the future, the NCRAAB should wait 10 to 15 minutes to obtain a quorum; that if a quorum is not achieved, the meeting should not take place and be rescheduled; that the tainted item only relates to Agenda Item CRA-3. A motion was made by Vice Chair Shaw to accept the NCRAAB report with the exclusion of the recommendation for holding harmless the Newtown TIF funds with the understanding of the item being deferred to be discussed separately, which died for lack of a second. Chair Snyder passed the gavel to Vice Chair Shaw. Amotion was made by Chair Snyder, seconded by Member Caragiulo, and carried by a 5-0 vote to have the Financial Administration Deputy Director re-present to the Newtown Community Redevelopment Agency Advisory Board in the presence of a quorum the March 31, 2014, Financial Report which reflected a reduction of Tax Increment Financing funds in the Newtown Community Redevelopment Agency proposed budget since the December 31, 2013 report, along with a report concerning resetting the base year for the determination of Tax Increment Financing funds collected within the Newtown Community Redevelopment Agency area. 4. PRESENTATION AND DISCUSSION RE: REQUEST THE CRA TO AFFIRM TO THE CITY COMMISSION THE NEWTOWN COMMUNITY REDEVELOPMENT AGENCY ADVISORY BOARD'S RECOMMENDATION FOR $24,000.00 OF TAX INCREMENT FINANCING (TIF) FUNDS FOR SEVEN YOUTHS TO BE HIRED AS COUNSELORS IN TRAINING FOR SUMMER CAMP AT THE ROBERT L. TAYLOR COMMUNITY COMPLEX FROM JUNE TO AUGUST 2014 (AGENDA ITEM CRA-4) General Manager Lorna Alston, North Sarasota Redevelopment Division, Neighborhood and Development Services (NDS) Department, and Manager Jerry Fogel, Robert L. Taylor Community Complex (RLTCC), Public Works (PW) Department, came before the Community Redevelopment. Agency (CRA). Ms. Alston stated that at the. April 8, 2014, Newtown Community Redevelopment Agency Advisory (NCRAAB) meeting RLTCC Manager Fogel requested the NCRAAB approve Tax Increment Financing (TIF) funds in the amount of $24,000 to employ seven youth for the ten-week Counselors-in-Training (CIT) Program; that the NCRAAB voted unanimously to recommend approval of $24,000 in TIF funds and to provide Staff the option of an additional $9,000 for a total of $33,000 in the event of a funding shortfall despite the program manager's best effort to secure non-City funds; that Staff recommends the CRA approve and make a recommendation to the City Commission to approve $24,000 in TIF funds to employ seven youth for the ten-week CIT Program at RLTCC and provide Staff the option of an additional $9,000 for a total of $33,000 in the event of a funding shortfall. Mr. Fogel stated that the CIT Program at the RLTCC consists of training youth counselors ages 16 to 21 for ten weeks; that the youth counselors assist with all aspects of the Summer Camp Program which runs from June to August for youths 6 to 12 years old; that last year 75 youths attended with an additional 60 on the waiting list; that this year Staff is trying to accommodate more children in the community and has approximately 90 youths signed up for the Summer Camp Program; that the hope is to have the Summer Camp Program extension in Payne Park with an additional 40 to 50 youths to meet the needs of the community; that throughout the Summer Camp Program CITS learn and enhance their leadership, organizational, and communication skill sets along with receiving a weekly four-hour in-kind training for ten weeks on Life Skills which is taught by Career Source, formerly known as Suncoast Workforce. In response to a question from Vice Chair Shaw asking if the additional 50 youths at a proposed Summer Camp Program extension at Payne Park and the 90 youths already participating result in a total of 140 youths participating, Mr. Fogel stated yes; that the proposed Summer Camp Program extension at Payne Park would occur next year; that the request is to approve $24,000 of TIF funds and provide Staff the option of an additional $9,000 for a total of $33,000 which would suffice to employ 15 additional youths. In response to a question from Member Atwell asking about additional funding being sought, Mr. Fogel stated that Staff has made contact with the Suncoast and Gulf Coast and Sarasota Community Foundations. In response to a question from Member Caragiulo asking for clarification regarding the request for $24,000 with the option of an additional $9,000, Mr. Fogel stated that the request is for the CRA to recommend to the Commission the approval of $24,000 of TIF funds to employ seven youth in the ten-week CIT Program at RLTCC and to provide Staff the option of an additional $9,000 for a total of $33,000 in the event of a funding shortfall. Deputy City Manager Marlon Brown, City Manager's Office, came before the CRA and stated that the request is approval of $24,000 of TIF funds with the option of an additional $9,000; that additional funding would not be requested if approved; and Member Caragiulo stated that for clarification the request should be stated in the initial request and in the content of the Agenda backup material. In response to a question from Chair Snyder asking if the youths in the Summer Camp Program reside in the City, if youths from the County also participate and if the $24,000 of TIF funds being requested was budgeted from the perceived base year reset or from the previous year prior to the base year reset, Mr. Fogel stated that both City and County youths participate in the Summer Camp Program, and Ms. Alston stated that the $24,000 of TIF funds was budgeted in the previous year prior to any base year reset. Ar motion was made by' Vice Chair Shaw, seconded by Member Atwell, and carried by a 4-1 vote to approve and make the recommendation to the City Commission to approve $24,000 in Tax Increment Financing (TIF) funds to employ seven youth in the ten-week Counselors In Training (CIT) Program at the Robert L. Taylor Community Complex (RLTCC) and provide Staff the option of an additional $9,000 for a total of $33,000 in the event of ai funding shortfall, with Chair Snyder voting no. 5. REPORT RE: DOWNTOWN COMMUNITY REDEVELOPMENT AGENCY ADVISORY BOARD'S REGULAR MEETING OF MARCH 13, 2014 (AGENDA ITEM CRA-5) Mark Huey, Chair, Newtown Community Redevelopment Agency Board (NCRAAB), and Vice Chair, Downtown Community Redevelopment Agency Advisory Board (CRAAB), and Chief Planner Steven Stancel, Building and Zoning Division, Neighborhood and Development Services (NDS) Department, came before the Community Redevelopment. Agency (CRA). Mr. Stancel stated that Michael Beaumier, Chair, Downtown Community Redevelopment Agency Advisory Board (CRAAB), is absent; that Mr. Huey, Vice Chair, will be representing the Board on his behalf. Mr. Huey stated that at the March 13, 2014, Downtown CRAAB meeting the following actions took place: 1) The Downtown CRAAB minutes of December 19, 2013 were approved unanimously. 2) AI recommendation to send invitations to Downtown organizations inviting representatives to attend a forum to discuss marketing strategies was approved unanimously. 3) Project priorities were recommended and approved unanimously as follows for fiscal year 2015 Tax Increment Financing (TIF) funds: Downtown Storefront Program Book 3 Page 31806 04/21/14 2:30 P.M. Book 3 Page 31807 04/21/14 2:30 P.M. Fruitville Road Connectivity Improvements Promotion of Cultural Park Concept Plan Downtown Circulator 4) The Downtown CRAAB voted unanimously to eliminate from the previous fiscal year Downtown CRAAB Priority Matrix the recommendation of a roundabout at First Street and Cocoanut Avenue. 5) The Downtown CRAAB voted unanimously to approve a recommendation to add the following three future projects after a presentation was reçeived from Norman Gollub, Downtown Economic Development Coordinator, Greater Sarasota Chamber of Commerce: Creation of a Downtown Mobile. Application Provision of free Downtown Wi-Fi access Exploration of the possibility of employing a Security Officer Downtown A motion was made by Vice Chair Shaw, seconded by Member Caragiulo, and carried by a 5-0 vote to accept the Downtown Community Redevelopment Agency Advisory Board (CRAAB) Report of the March 13, 2014, Regular meeting. 6. PRESENTATION AND DISCUSSION RE: REQUEST THE CRA1 TO REÇOMMEND TO THE CITY COMMISSION AUTHORIZATION FOR THE CITY MANAGER TO EXECUTE THE FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SARASOTA AND A.D. MORGAN CORPORATION, (RFP #12-62DB) PERTAINING TO PHASE II OF THE STATE STREET PARKING GARAGE PROJECT IN THE AMOUNT OF $10,566,826.00 (AGENDA ITEM CRA-6) Chief Planner Steven Stancel, Building and Zoning Division, Neighborhood and Development Services (NDS) Department, Financial Administration Director John Lege, III, and Purchasing Manager Mary Tucker, Purchasing Division, Financial Administration Department, came before the Community Redevelopment Agency (CRA). Executive Director Barwin stated that Staff will be providing the CRA an update of the proposed State Street Parking Garage and Mixed-Use Project. Mr. Stancel gave a PowerPoint presentation displayed on the Chamber monitors of an overview of the historic process, referred to PowerPoint slides, and stated that two CRA Agenda Items are presented; that CRA Item No. 6, is to request the CRA recommend the Commission authorize the City Manager to execute the First Amendment to the Agreement with A.D. Morgan (A.D. Morgan) Corporation in the amount of $10,566,826; that CRA Item No.7 is a follow-up to CRA Item No. 6 to request the CRA recommend to the Commission the adoption of proposed Resolution No. 14R-2413 to amend the budget and approve the Interfund Loan Agreement for the added cost to the initial contract amount of $7,279,341; that four subsequent Agenda items are scheduled to come before the Commission for recommendations; that the Commission has a Contractual Agreement to have the construction of the proposed State Street Parking Garage and Mixed-Use Project with 300 parking spaces completed by mid-February 2015; that numerous community and stakeholder meetings and public workshops have been held from March through October 2013 as well as Staff's having kept the Commission informed; that Staff presented the Commission several site plan options to afford the opportunity for public/private partnerships; that Staff was directed to refine further the design options with assistance from the Urban Design Studio (UDS) Staff prior to marketing and report back to the Commission; that at the October 21, 2013, Regular Sarasota City Commission meeting, the Commission selected the "Pad Lite" option as well as the architectural style and design of the building; that at the February 3, 2014, Regular Sarasota City Commission meeting, Staff provided the Commission an update concerning the project cost; that the Commission directed Staff to proceed with construction preparations, adhere to the construction time schedule, and bring back a final design in concert with an Interfund Loan to fund the gap between the original estimated cost and the expected final construction cost; that Staff attended the March 12, 2014, Planning Board/Local Planning Agency (PBLP) meeting and sought approval for three adjustments regarding street access, which were approved; that Staff attended the March 19, 2014, Development Review Committee (DRC) meeting and presented the Committee with 45 percent development plans of the proposed project and received input; that no major issues were identified; that Staff recommends the CRA recommend the Commission direct the City Attorney's Office to draft and to approve the First Amendment to the. Agreement with A.D. Morgan (A.D. Morgan) Corporation in the amount of $10,566,826 for the City Manager's signature. Mr. Lege referred to the PowerPoint presentation displayed on the Chamber monitors and stated that since Staff's presentation at the February 3, 2014, Regular Sarasota City Commission meeting the projected cost has not changed; that the Guaranteed Maximum Price (GMP) for the project is $11,379,459 which was budgeted for $7,279,341, resulting in a shortfall of $4,100,118; that Staff is proposing to cover the shortfall by using the Fund Balance in the amount of $880,000; that Staff is also recommending the reallocation of funds from discretionary projects in the Downtown Redevelopment Plan for the Downtown area and the Downtown Community Redevelopment Agency (CRA) grants which total $361,528 combined; that Staff is also proposing to extend the following three proposed Downtown projects into the future for a combined total of $1.11 million: 1) Wayfinding Signage $600,000 2) Downtown Transportation $460,000 3) Enhanced Maintenance $50,000 Mr. Lege continued that the funds would total approximately $2.3 million with a continued funding shortfall of $1.748 million; that Staff is proposing an Interfund Loan of $874,295 from the Fleet Liability and Workers' Compensation Funds; that the proposed Interfund Loan would be a two-year loan to the CRA with an interest rate of three percent; that the CRA sunsets on September 30, 2016; that the Interfund Loan can be repaid using one of the following options: 1) Sale of retail space and the Pad Lite site which is estimated at $2 million. 2) Excess revenues from the Palm Avenue Hotel site of $1.3 million. In response to a question from Vice Chair Shaw asking about holding harmless the Newtown CRAI revenue, Attorney Fournier stated that the motion was to defer consideration of the item, which could be brought back. In response to a question from Chair Snyder asking about the Fleet Liability and Workers' Compensation Funds balances, Mr. Lege stated that the Fleet Liability Fund balance is $1.9 million and as of September 30, 2014, the balance is projected to be $1.8 million; that the Workers' Compensation Fund balance is $3.7 million and as of September 30, 2014, the balance is projected to be $2.93 million. Ms. Tucker stated that to determine a GMP, A.D. Morgan received bids from the various trades; that currently 78 percent of the project has been bid; that an agreement with the lowest bidder which meets all the requirements will be entered into by a subcontract agreement with A.D. Morgan; that the City had received and reviewed all the bids received by A.D. Morgan; that of the 78 percent of the bid-outs, 30 percent are local vendors which will be utilized for the project; that A.D. Morgan has been working with Career Source, formerly known as Suncoast Workforce; that the overall anticipated number of job placements is 150 to 160 with 50 to 60 of the placements being related to cast-in-place construction. Mr. Stancel stated that the proposed project will provide economic development and activity; that if the CRA approves to recommend to the Commission authorization fori the City Manager to execute the First Amendment to the Agreement with. A.D. Morgan in the amount of $10,566,826, work will begin at the site in mid- or late-May 2014, to be followed by vertical construction in July 2015, substantial completion by February 14, 2015, and with receipt of a final Certificate of Occupancy (CO) on March 17, 2017; that Staff anticipates the garage will be fully operational in February 2015; that Staff spoke with the Sarasota Farmers Market representative regarding an adjustment to the proposed fencing which would allow for continued use of Lemon Avenue during construction. Book 3 Page 31808 04/21/14 2:30 P.M. Book 3 Page 31809 04/21/14 2:30 P.M. The following person spoke: Phil Pagno, Executive Director, Sarasota Farmers Market, indicating building the State Street Parking Garage and Mixed-Use Project as soon as possible is supported and everyone involved in the process is thanked. In response to a question from Member Caragiulo concerning the water-line construction and cost, Ms. Tucker stated that the City will be doing the water-line construction; that the cost is unknown; however, the project is in the design phase. In response to a question from Member Atwell asking the timeline for lan Black, President/Realtor, lan Black Real Estate, to begin marketing, Ms. Tucker stated if the CRA approves to recommend to the Commission authorization for the City Manager to execute the First Amendment to the Agreement with A.D. Morgan in the amount of $10,566,826, Mr. Black could begin marketing late this week or early next week. In response to a question from Member Chapman asking if the price includes value engineering, Ms. Tucker stated yes; and Mr. Stancel stated that $377,000 in contingency fees is built in. In response to a question from Chair Snyder asking if a written contract is available or if the CRA is approving to recommend the Commission authorize the City Manager to execute the First Amendment to the Agreement with A.D. Morgan in the amount of $10,566,826 to be followed by a contract, Attorney Fournier stated that the CRA is approving the price; that the proposed type of authorization is not uncommon and has been done in the past; and Ms. Tucker stated that the proposal is for an amendment; that a contract does exist with A.D. Morgan. In response to a question from the Chair Snyder asking if the City Manager may delegate signing the proposed First Amendment to the Agreement A.D. Morgan in the amount of $10,566,826, Attorney Fournier stated that the CRA is approving to recommend the Commission delegate to the City Manager authority to execute the proposed First Amendment to the Agreement with A.D. Morgan in the amount of $10,566,826; however, the item can come back for execution by the Mayor if the Commission desires. Executive Director Barwin stated for the record that he has never signed a contract until reviewed and signed by the City Attorney's Office. Discussion ensued about the individuals who have the authority to sign binding contracts on behalf of the City, an amendment to the City Charter requiring all contracts must be approved by the Commission unless an Ordinance is adopted, an already existing Ordinance codified in the City Code authorizes the three Charter Officials to sign certain contracts which are enumerated, and a majority of those contracts are under the City Manager. Executive Director Barwin stated that Staff and others involved are thanked; that when the project is completed, the City will have acquired 400 parking spaces which will be paid for and owned in a relatively short period of time; that the State Street Parking Garage is a positive for the community and Downtown. A motion was made by Member Atwell and seconded by Member Chapman to recommend to the Commission to direct the City Attorney's Office to draft the First Amendment to the Agreement with A.D. Morgan (A.D. Morgan) Corporation in the amount of $10,566,826 and authorize the City Manager to execute. Member Atwell stated that the design she initially choose was not selected; however, the project should move forward. Member Chapman stated that while serving as a member of the PBLP, the recommendation to the Commission was not to accept the State Street Parking Garage and Mixed-Use Project deal; that if the Commission had accepted the recommendation, the Commission would not be bound to build the parking garage right away; however, the obligation is to build now or risk being sued. Vice Chair Shaw stated that the intention to build the State Street Parking Garage and Mixed-Use Project is supported; however, building a parking garage with improvements in one portion of the City while taking away from another portion is not supported; that the recommendation of the Newtown CRA Advisory Board to hold harmless the Newtown TIF funds with assurances of not having a zero balance fund due to a Downtown improvement project is not being taken into consideration before the proposed motion moves forward. Executive Director Barwin stated that the Interfund Loan is written to hold harmless the Newtown TIF funds since all the funds will be replenished once all the repayments are made; and Vice Chair Shaw stated that, therefore, with this assurance the motion is supported. Member Caragiulo stated that building the State Street Parking Garage and Mixed-Use Project has always been supported; that trying to continue the CRA is a concern since spending issues are apparent; that the expenditure is pretty egregious for what the City would be receiving and, therefore, the motion cannot be supported. Chair Snyder stated that the motion is not supported; that the cost to have purchased the Pineapple Square property rather than building the proposed State Street Parking Garage and Mixed-Use Project would have been cheaper; that the long-term cost to maintain the parking garage was not discussed and will either require a property tax increase or the re-installation of parking meters; that the City is basically writing a blank check. Chair Snyder called for a vote on the motion to recommend the Commission direct the City Attorney's Office to draft the First Amendment to the Agreement with A.D. Morgan (A.D. Morgan) Corporation in the amount of $10,566,826 for the City Manager's signature, which carried by 3-2 vote with Chair Snyder and Member Caragiulo voting no. 7. PRESENTATION AND DISCUSSION RE: REQUEST THE CRA TO REÇOMMEND TO THE CITY COMMISSION ADOPTION OF PROPOSED RESOLUTION NO. 14R-2413, APPROVING AN INTERFUND LOAN OF $874,295 FROM THE FLEET LIABILITY FUND AND $874,295 FROM THE WORKERS COMPENSATION FUND TO THE COMMUNITY REDEVELOPMENT AGENCY, ETC. (AGENDA ITEM CRA-7) Executive Director Barwin stated that the item is to approve the Interfund Loan to finance the cost of the State Street Parking Garage and Mixed-Use Project with a short-term loan from the Fleet Liability and Workers' Compensation Funds in the amount of $874,295 each; that repayment of the loan will occur using the proposed options presented by the Financial Administration Director; that Staff is recommending the CRA approve a recommendation to the Commission to adopt proposed Resolution No. 14R-2413. A motion was made by Vice Chair Shaw and seconded by Member Chapman to recommend the Commission adopt proposed Resolution No. 14R-2413. Vice Chair Shaw stated that the motion is supported; that no problem exists moving forward based upon the assurance made by the Executive Director to hold harmless the Newtown TIF funds. Member Chapman stated that the current Commission is bound to build the State Street Parking Garage and Mixed-Project due to the previous Commission's disregard of the recommendation of the Planning Board/Local Planning Agency (PBLP). Chair Snyder stated that borrowing money from the Fleet Liability and Workers' Compensation Funds is troubling; that the fund balances have been sitting dormant despite the Commission's having to raise taxes last year; that Staff never made known the fund balances from which the Commission could have siphoned rather than raising taxes; that the proposal is risky and the motion is not supported. Chair Snyder called for the vote on the motion to recommend the Commission adopt proposed Resolution No. 14R-2413, which carried by a 3-2 vote with Chair Snyder and Member Caragiulo voting no. Book 3 Page 31810 04/21/14 2:30 P.M. Book 3 Page 31811 04/21/14 2:30 P.M. 8. ADJOURN Chair Snyder adjourned the meeting at 4:25 p.m. SHANNON SNYDER, CHAIR ST: 41 wo V PAMELA NADALINI, SECRETARY