MINUTES OF THE SPECIAL SARASOTA COMMUNITY REDEVELOPMENT AGENCY MEETING OF FEBRUARY 17, 2009 PRESENT: Chair Lou Ann R. Palmer, presiding, Vice Chair Ken Shelin, Members Fredd "Glossie" Atkins, Richard Clapp, and Kelly M. Kirschner, Executive Director Robert J. Bartolotta, Attorney Robert M. Fournier, and Secretary Billy E. Robinson ABSENT: None The meeting of the Community Redevelopment Agency (CRA) was called to order by Chair Palmer at 2:47 p.m. 1. APPROVAL RE: MINUTES OF THE SPECIAL COMMUNITY REDEVELOPMENT AGENCY MEETING OF JANUARY 5, 2009 (AGENDA ITEM CRA-1) Chair Palmer noted CRA consensus to approve the minutes of the Special Community Redevelopment Agency meeting of January 5, 2009. 2. APPOINTMENT RE: NEWTOWN COMMUNITY REDEVELOPMENT AGENCY ADVISORY BOARD (AGENDA ITEM CRA-2) Secretary Robinson stated that the terms of Tyrone Hill and Ed Rainey on the Newtown CRA Advisory Board have expired; that the original appointments were for one year; that Mr. Hill and Mr. Rainey are eligible for and have expressed an interest in reappointment, that if reappointed, the term will be for three years. Chair Palmer noted CRA consensus to reappoint Tyrone Hill and Ed Rainey to the Newtown CRA Advisory Board to serve three-year terms. 3. DISCUSSION RE: REDEVELOPMENT OF CITY'S PALM AVENUE PARCEL (AGENDA ITEM CRA-3) Parking Manager Susan Dodd and Chief Planner Steven Stancel, Neighborhood and Development Services Department, came before the CRA. Mr. Stancel stated that the CRA voted to delay making a decision regarding Staffs proposal for a parking structure and retail linear building at 1289 Palm Avenue for 90 days at the November 17, 2008, CRA meeting; that the 90-day delay was to allow an opportunity for parties who expressed an interest in the construction of alternate proposals such as a conference center to develop and submit ideas to Staff and for Staff to communicate with the Sarasota Convention and Visitors Bureau and County officials to gauge the interest in a proposed conference center, receive other proposals from interested parties, and to return to the CRA in 90 days to present the recommendations with any specific process to achieve the proposed recommendations; that eight proposals were received including Staffs original proposal. Chair Palmer stated that the City received a proposal from Ebach Realty and Development this afternoon. Mr. Stancel stated that the City also received an update to the proposal submitted by Corvus International, LLC, which he has not yet seen; that the proposals are grouped into two categories identified as a conference center with a hotel and a parking garage with retail space; and gave a computer-generated presentation concerning the following proposals submitted which did not have to follow any specific guidelines as no guidelines were established: Bayfront Center by Githler Development, Inc.: located on the Palm Avenue site, with the project to include a 75,000 to 80,000 square foot conference center, a 281-room Embassy Suites Hotel, approximately 25,800 square feet of retail and restaurant use, and BOOK2 Page 1680 02/17/09 2:30 P.M. BOOK2 Page 1681 02/17/09 2:30 P.M. an 818 space parking garage for a total cost of approximately $111 million, $62 million paid by the developer, $32 million by the County, and $18.5 million by the City. Corvus Proposal by Corvus International, LLC, (Corvus): located on a parcel of property between Fruitville Road, Fifth Street, and Lemon and Central Avenues, with the project to include a 90,000 to 100,000 square foot conference center, four 120-seat movie screening rooms, a 300-room hotel, 25,000 square feet of retail space, and a 940 space parking facility with 850 parking spaces within a structure for a total cost of $111.7 million which will be paid upfront by the developer and repaid using a combination of Tourist Development Tax (TDT) funds, Tax Increment Financing (TIF) funds, and possibly the creation of a Community Development District or similar entity, and the City would contribute a parcel of land with a current value of $1.7 million. Fairway Grande by Fairway Development Group Inc.: located on the northeast parcel of Fruitville Road and U.S. 41, with the project to include a 90,000 square foot conference center, a 275-room hotel, 35,000 square feet of retail space, and a 700 space public/private parking garage, however, a pro forma and cost estimates were not submitted. J.C. Ebach of Ebach Realty and Development advising contact will be made with a previously interested prospective developer to further gauge interest in providing a conference center in the City, however, the location and details were not included in the proposal. Mr. Stancel gave a computer-generated presentation concerning the City and County issues with the conference center/hotel proposals: Bayfront Center: proposed parking is insufficient to meet City goals, feasibility of a conference center is a concern, length of time to complete project may be too long, operating shortfall guarantee is not reflected in the submitted pro forma, and possible repayment sources are comprised of TDT funds, TIF funds, parking revenues, and the possible creation of a Community Development District, and the County would not generate the necessary Tourist Development Tax revenues over 20 years, requiring a referendum for any debt financing greater than $20 to $22 million, however, Githler Development, Inc., is now recommending the creation of a Community Development District with bonding authority and to extend financing from 20 to 30 years, Corvus Proposal: the County is concerned with the proposed use of TDT funds, Corvus will be presenting additional proposals for the funding of the development, and the City will have to relocate Fire Station No. 1 and the developer will be seeking amendments to the City's Comprehensive Plan and Zoning Code to allow the construction of a ten-story building, and Fairway Grande: the County issues are not available at this time as the proposal was submitted after the memorandum to the CRA was completed and the City issues identified through a quick analysis indicates the City and/or County financial involvement has not been defined for the proposed Fairway Grande Project, the 1.2 acre site is small compared to industry standards which may inhibit future expansion of facilities, and traffic concurrency presents issues which may require significant off-site improvements. Mr. Stancel stated that Staff obtained input concerning the proposed conference center concepts from the Sarasota Convention and Visitors Bureau (SCVB) and the Sarasota Board of County Commissioners (BCC); that the SCVB has reservations about committing TDT funds toward the construction of a facility as the same funds are required for the marketing and operations of the facility and suggests a market feasibility study including recommended locations in the Downtown and surrounding areas, size, and the cost of construction and operations of a proposed facility be conducted prior to moving forward; that the BCC will not endorse a proposal until the City Commission makes a policy decision to initiate the process, does not endorse a specific project as similar proposals for a conference center may be equally worth pursuing, directed County staff to engage in preliminary discussions with the City to review the conference center proposals, and would be interested in being involved in conversations with the City regarding options to determine the structure of such conversations. Mr. Stancel gave a computer-generated presentation concerning the following five proposals for a public garage/retail space project on the Palm Avenue parcel which utilizes a portion of the parcel and leaves a portion of the parcel available for future development: Finfrock Proposal: proposes a project to include a 713 space parking garage, with 15,900 square feet of retail space at a cost less than $11 million, Triton Proposal: proposes to design a project to City specinications providing all necessary funding upfront with the agreement the City will make lease payments and will own the structure at the end of the Lease Agreement, Santomenno Proposal: proposes a project to utilize the back corner of the lot for the construction of the garage only and presented three different parking garage arrangements based on either a precast garage or mechanical garage structure, the footprint of which decreases as the height of the structure increases, Kraft, Fawley, Bryant, and Main Street Realty, LLC Proposal: proposes the developer lease and operate the retail space associated with the development, negotiate a price with City, be responsible for leasing the retail space, and submitted clear illustrations as to how to accommodate a hotel with a conference center and meeting space, and Staff Proposal: proposes a parking garage with retail space on the bottom floor which will generate jobs and will leave approximately one acre of land available for future development. Mr. Stancel stated that any of the proposers could compete for the opportunity to provide design and construction services if the City moves forward with the preparation of a Request for Proposals (RFP); that the Palm Avenue site currently has 120 parking spaces; that the number of parking spaces can be increased by paving portions of the lot which are currently unimproved; and gave a computer-generated presentation concerning the following two Wait-and-See options outlined for Commission review: Option 1, the Cadillac: involves grading and reconstructing the entire site into one surface parking lot, resulting in approximately 265 parking spaces at an approximate cost of $423,000 and - Option 2, the Pinto: involves restriping a portion of the current Palm Avenue site and adding pavement to the unimproved areas which yields approximately 250 parking spaces at an approximate cost of $191,000. Mr. Stancel stated that knowing each design could be achieved with the least amount of pervious compared to impervious surfaces and/or grass parking at an increased cost may be germane; that the established needs in the area of the Palm Avenue parcel must be reiterated as follows: Andres Duany, the consultant who developed the City of Sarasota Downtown Master Plan 2020 (Downtown Master Plan 2020), identified civic parking recommendations to address the need for public ownership of land which may be required for infrastructure and/or municipal functions as the City evolves, The Downtown Master Plan 2020 identified the Palm Avenue site as a critical, civic parking reservation site without quantifying the need for parking, and BOOK2 Page 1682 02/17/09 2:30 P.M. BOOK2 Page 1683 02/17/09 2:30 P.M. Tindale-Oliver and Associates, Inc., was hired as a consultant in 2004 to quantify the need for parking while the City created the Downtown Master Plan 2020 to allow the City to use the quantified need as a base request for parking. Mr. Stancel continued that the need identified in 2004 for parking spaces was established at an average of 400 parking spaces to accommodate the immediate need as the City proceeded with the previous RFP process for the Palm Avenue site by examining the daytime and evening parking inventory in the area; and gave a computer-generated presentation concerning the following four potential options for review: Option 1: Design and build an approximately 700 public parking space garage with a retail liner and continue to explore the development of a conference center in other locations in the Downtown area, Option 2: Sell the Palm Avenue parcel for possible development of a conference center with a hotel and build a public parking garage at another Downtown location, Option 3: Delay action for six months to allow the City and the County to pursue the opportunity to locate the public/private conference center in the Downtown and surrounding area, and Option 4: Reestablish surface parking lots with greater occupancy of parking spaces. Mr. Stancel stated that the City recommends the approval of either Option 1 or Option 2 and read an excerpt from the Downtown Master Plan 2020 as follows: By setting aside property in key locations to be constructed as public parking garages, the City reduces the need for developers to build large, bulk buildings and induces workers and visitors to use the streets of the Downtown to move between garages and their offices, stores, or other destinations. Institutionalizing this one program will enhance the vitality of the Downtown and will control the creeping gigantism of recent developments. Chair Palmer noted Commission consensus to allow the people who signed up to speak prior to Commission questions and requested that the Secretary repeat the Pledge of Conduct. Secretary Robinson repeated the Pledge of Conduct. The following people signed up to speak: Michael Carlson, representing the Sarasota Branch of the U.S. Green Building Council and American Institute of Architects Committee on the Environment, indicating the City is a member of the International Council for Local Environmental Initiatives (ICLEI) committing the City to sustainable development, has signed the U.S. Mayors' Climate Protection Agreement requiring the City to practice and promote sustainability in building practices, read an excerpt from the U.S. Mayors' Climate Protection Agreement, and placed pictures of a mixed-use project with retail on the ground level and parking above being constructed in Denver, Colorado, and a parking structure being built in Santa Monica, California, and indicating upgrading to a midlevel of sustainability will cost one or two percent more based on the level of Leadership in Energy and Environmental Design (LEED) certification the City would like to achieve. Gwen Calloway indicating the City should devise a system to bring buildings into Newtown to help redevelop the storefronts. Robert Hillier, representing the Center Point Properties, indicating he would like to be involved in the revitalization of the Downtown, the best location for a conference center would be in close proximity to the Hotel Indigo and the Ritz-Carlton Hotel, and supporting Option 1. William Finfrock, representing Finfrock Design Manufacturer Construct, presented a picture of a parking garage which could be built to obtain 713 parking spaces and approximately 16,000 square feet of retail space at a cost of less than $11 million including all architectural engineering fees, more than $1 million worth of off-site stormwater improvements, all site work, $10,000 worth of public art, and building permits, indicating the price of less than $11 million can be guaranteed right now for the parking structure shown in the picture, Finfrock Design Manufacturer Construct is the largest design builder of parking structures in the State and is a pre-cast concrete manufacturer, the schedule and quality of the parking garage is assured, and a parking garage will have a positive economic impact to the City as did a similar parking garage to the City of Winter Park, Florida. Glenn Valenta, representing Finfrock Design Manufacturer Construct, indicating the recent writings of the Urban Land Institute calls parking the new amenity, the remainder portion of the Palm Avenue site can be developed following the construction of the parking garage, the building has no complex financing involved, the parking garage can be opened by the first or second quarter of 2010, and the City should consider a design-build rather than a design-bid-build option due to the Spearin Doctrine which arose from the case of the United States versus Spearin, 248 U.S. 132 (1918) maintaining a contractor will not be liable to the owner for loss or damage resulting solely from insufficiencies or defects in such information, plans, and specifications and a design builder will be responsible for any errors which minimizes the risk to taxpayers of the City and the County. Mary Ciner requesting the City build a parking garage for additional parking for events held in the Downtown and the Bayfront, indicating a conference center on the Palm Avenue site is not necessary as a conference center does not generate a profit and City taxpayers do not need to subsidize any more venues. Robert Morey, representing the Fairway Development Group, Inc., indicating the Fairway Development Group of Sarasota favors the construction of parking on the Palm Avenue site and is not convinced a conference center on the Palm Avenue site meets the guidelines of a functional location, the airport, the Van Wezel Performing Arts Hall, and the Sarasota Quay areas were identified as potential sites for a conference center, a conference center must be located near the City's core of hotels to keep the travel of the participants compact, Fruitville Road and U.S. 41 is the proposed site for the Fairway Grande and is in close proximity to the Hyatt Hotel, the Ritz-Carlton Hotel, the Indigo Hotel, and the future Waldorf- Astoria Hotel. Dale Parks distributed a letter indicating his disagreement with the proposed project presented by Githler Development as the 818 space parking garage will not be sufficient to meet the parking needs of the City, indicating the Zoning Code does not make a distinction in commercial uses, and the proposal only references public parking during the off-season. Timothy Morris, representing Corvus International, LLC, indicating the proposal designed approximately one year ago provides a total of 639,000 square feet, an amendment to the Zoning Code will not be sought as Corvus is willing to comply with the current zoning which limits the height to five stories, that the current proposal includes a 90,000 square foot conference center and approximately 1,336 parking spaces, the hotel phase of the proposed project is ready to move forward, and recommending the City attempt to obtain Federal funds to help the project move forward immediately. Debra Torres, representing the Downtown Partnership of Sarasota (Downtown Partnership), indicating the Downtown Partnership continues to strongly support the development of a conference center Downtown, the City must consider redevelopment projects which promise to bring substantial economic benefits to the community during the current difficult economic time, the Downtown Partnership is not taking a position on the conference center but rather is requesting the CRA to consider all possible sites and proposals and develop a course of action to provide the best possible plan for successful development for the Downtown, and parking is important but a project with high economic stimulus is necessary. BOOK: 2 Page 1684 02/17/09 2:30 P.M. BOOK2 Page 1685 02/17/09 2:30 P.M. Alan Kurland supporting the construction of a parking garage/retail proposal, opposing the construction of a conference center on the Palm Avenue site as businesses may experience a negative impact, indicating the Fruitville Road and U.S. 41 locations should be considered for the construction of the conference center, and requesting the Commission allow Corvus to construct additional parking and revitalize the Rosemary District. Craig Colburn supporting the letter sent by the Community Development Corporation (CDC), indicating the investment of TIF funds on profit-generating projects proposed in the TIF District is a recurring theme the City will continuously hear going forward, the City should consider any action taken at the current meeting as a strategic investment in the City's competitiveness, supporting the construction of a conference center and hotel on the Palm Avenue site, and the appearance of parking attracts customers. Andy Dorr, representing Githler Development, indicating the City should delay taking any action concerning the development of the Palm Avenue site until a joint meeting between the Commission and the Sarasota Board of County Commissioners can be held, recommending the CRA approve Option 3 if the CRA must make a decision, indicating the City should have a LEED certified conference center Downtown, Githler Development recommends the City continue with the analysis of a conference center on various sites rather than promoting the proposed Bayfront Project, support preliminary proposals to develop the conference center and hotel Downtown, delay action on the Palm Avenue site to allow the County, the City, and the community to contract for specific site feasibility, market analysis, best location, size of facility, configuration, consistent with the SCVB recommendation, the City and County undertake the formation of a special district and evaluate financing alternatives using hotel and conference center experts, continue with other mixed-use alternatives for the Palm Avenue site if the CRA chooses another location for the conference center, and the City is not obligated to pledge any revenues from the retail or parking operations if sufficient TIF funds are available to pay the $9.6 million for the 500 parking spaces and 16,000 square feet of retail. Michael Saunders requesting the City have leadership and vision, indicating creating parking in the Downtown has been discussed for the past 18 to 20 years, constructing parking on the Palm Avenue site which is a gateway to the City is not appropriate, the City currently has an opportunity for a more vibrant integrated project which creates the much needed parking Downtown, and advocating for the City's vision to construct more than a parking garage and not leave another parcel of land to become a silo by not integrating a mixed-use project at the gateway of the City which creates jobs, vibrancy, and connectivity, and recommending the City ensure the developer guarantee any operations shortfalls. Dan Bailey, representing Githler Development, displayed Section 163.345, Florida Statutes, concerning CRAS on the overhead and read the pertinent portion regarding the involvement of a private enterprise to the greatest extent possible, indicating Options 2 and 3 combine the elements regarding the greatest extent and maximum opportunity to partner with a private enterprise in evaluating the options, and the CRA should involve a private enterprise to the greatest extent possible. Paul Thorpe, representing the Downtown Association, indicating the Palm Avenue site has been vacant for approximately 30 years, the Bayfront Center proposal submitted by Githler Development will attract various businesses to the community, the Florida Redevelopment Association has not returned to hold a conference in the City due to the lack of the necessary facilities, two new stores located on Main Street are holding going out of business sales, the City must bring a project which will help stimulate the local economy, something really constructive and beautiful should be constructed and not just a parking garage, and the St. Armands Business Improvement District unanimously endorses the idea of a parking garage, conference center, and hotel. Bruce Franklin indicating the citizens were sold a mixed-use Downtown project which would energize the redevelopment of the Downtown core and not a parking garage with some retail when attempting to purchase the Palm Avenue parcel, Staffs proposal will not create the necessary additional job opportunities, expediency is not justification for mediocrity, and the CRA should consider Option 3 to have the necessary time to reflect on the current economic times and the opportunities available to leverage a better future for the City. Kim Githler indicating creating an opportunity to have better meeting facilities is extremely important to the City and to the charities and people of the City as the City is very limited in the number of appropriately sized meeting facilities, the City can attract people by attracting groups, and a convention center is needed in the Downtown to help support the jobs and restaurants. Del Borgsdorf, representing the Greater Sarasota Chamber of Commerce (Chamber), indicating the Chamber continues to support a conference center in the Downtown and Option 3 has the most merit as the CRA would have an opportunity to carefully review and consider the proposals submitted by the various developers and determining which best meets the needs of the City and to retain professional assistance using the available TDT funds, and commending Staff for the work accomplished within 90 days. Karin Murphy, representing Githler Development, indicating the City has recognized the Palm Avenue area as vitally important to the health of the Downtown and the civic functions for the past 85 years, the plans created by John Nolen, R/UDAT, and Duany Plater-Zyberk and Company promote vitality, walkability, and human scale in the built-out environment as well as allowing an economic opportunity, Andres Duany provided the City the necessary tools to balance the current needs of the City when creating the Downtown Master Plan 2020 and integrating the recommendations with the Comprehensive City Plan developed by John Nolen in 1925, the Downtown Master Plan 2020 cautions opportunities should be provided for partnerships which promote the underlying goals of new urbanism, and having a civic use, an economic generator, and a possible stimulus plan on the Palm Avenue site would be nice. Allen Parsons supporting Option 3, indicating the much needed potential benefits arising from the conference center/hotel concept preclude passing the opportunity for expediency, the expenditure of TIF funds should always be to maximize projects having the greatest multiplier effect for incoming and outgoing funds, public/private partnerships are not difficult to pursue, the City should avoid setting a minimum number of required parking spaces at this time and prejudging any traffic concurrency issues as a result of any of the proposals submitted, and a conference center and the Palm Avenue site are too important to just move forward without further evaluation. Mollie Cardamone, representing Githler Development, indicating the City has been considering the construction of a conference center for many years, a conference center has many positive benefits to Downtown merchants, the construction of a parking garage is not as urgent at this time as the economy has drastically changed, requesting the CRA support Option 3 to allow vetting a conference center/hotel concept by a market feasibility study, indicating the revenues generated by the various taxes such as the bed tax will cycle throughout the community if a conference center is constructed, and urging the CRA be tempted by and interested in the long-range impact of a proposed conference center/hotel project. Ron Reyovich, representing the Five Points Neighborhood Association, indicating time will be necessary to make a conference center work, a properly sized conference center would be positive and a stimulating factor for the City, free-standing parking garages with a retail liner do not work well, and supporting Option 3. Chair Palmer noted CRA consensus to extend the meeting to finish public input and to reconvene in the evening session of the Agenda for deliberations. Fredrick Piccolo, representing the Sarasota Manatee Airport Authority, indicating a conference center is a positive development in strengthening the community's destination infrastructure and has a positive effect on air transportation service and will help create long- and short-term employment opportunities at the conference center, restaurants, Downtown businesses, real estate, and the Sarasota-Manatee International Airport, and the City must rebuild the destination infrastructure as tourism is a critical portion of the local economy. BOOK2 Page 1686 02/17/09 2:30 P.M. BOOK: 2 Page 1687 02/17/09 2:30 P.M. Charles Githler, representing Githler Development, indicating he has recused himself from the discussions of the CRA Advisory Board during consideration of the matter, the City is no longer able to accommodate large conferences, supporting Option 3 which would provide additional time to allow the City and the County to obtain an appropriate comprehensive analysis to further develop the possible construction of a conference center/hotel proposal, a conference center must be able to sell itself, Githler Development is the appropriate team to construct the first conference center/hotel project since the worst economic downturn in 1982 as Githler Development has repeatedly brought major financing to hotels in the City, the smaller conference center can be developed and be successful, and the CRA should not let perfection be the enemy of much needed progress. Eileen Hamsphire, representing the Palm Avenue Merchants Association, indicating she would vote for an economic stimulus of a conference center rather than a parking garage and the City should stop studying projects excessively and support what the citizens believe is in the best interest of a robust future for the City and requesting the City restripe the existing parking lot on the Palm Avenue site during the planning phase. Mary Dougherty-Slapp, representing the Gulf Coast Builders Exchange (GCBX), indicating GCBX supports the concept of a conference center and hotel to bring long-term economic stimulus, job creation, and vibrancy to the Downtown as opposed to a parking garage, requesting the CRA include in any agreement an understanding the developer is to utilize local general contractors and subcontractors to help keep the dollars local. Elsie Souza indicating the City needs parking but not necessarily a parking garage, the parking garage located at 100 Central Avenue has never been filled to capacity, building a stand-alone parking garage is a concern, the CRA can stripe and create a surface garage rather than using TIF funds to build a parking garage, and requesting the CRA make a decision for the taxpayers of the community. Sy Sherr indicating the placement of a parking garage on Palm Avenue to help resolve the Downtown parking issues is not understood, convincing people to use a parking garage is not easy as many people will prefer to walk further rather than to use a parking garage, and no one is using the public parking spaces at the Sarasota Opera during the night. Diana Hamilton indicating an urgency was heard in the voices of the people who came before the CRA, previous speakers are requesting the CRA build a vibrant and fabulous project on the Palm Avenue site which will create job opportunities and add to the City's tax revenues rather than a parking garage, the idea of a conference center has always been appealing, people will want to attend conferences in the City ifa conference center is built, and asking the CRA to do something fabulous with the vision of the City. John Moran requesting the CRA choose a project which will enable the Palm Avenue site to reach its full potential and indicating a mixed-use project comprised of a conference center, hotel, retail, and parking garage will help the Palm Avenue site reach its full potential. Secretary Robinson stated that the CRA will reconvene immediately following the public hearings on the Agenda of the February 17, 2009, Regular Commission meeting. The CRA recessed at 4:52 p.m. and reconvened at 7:02 p.m. 4. CONTINUATION AND DISCUSSION RE: REDEVELOPMENT OF CITY'S PALM AVENUE PARCEL (AGENDA ITEM CRA-3) Chair Palmer stated that the public input was completed during the afternoon session of the CRA meeting. Finance Director Christopher Lyons, Financial Administration Department, and Parking Manager Susan Dodd and Chief Planner Steven Stancel, Neighborhood and Development Services Department, came before the CRA. Mr. Stancel stated that the public made very good comments for debate. Ms. Dodd stated that the Bayfront Center proposal does not include public parking and gave a presentation concerning the method used to calculate the parking demand Downtown including the consideration of captive users, cross purposes, and non-overlapping peaks. In response to a question by Member Atkins asking if the City is short 1,200 parking spaces Downtown, Ms. Dodd stated that the Bayfront Center proposal does not include the 400 public parking spaçes identified in the City of Sarasota Downtown Master Plan 2020 (Downtown Master Plan 2020) as necessary on Palm Avenue. Executive Director Bartolotta stated for clarification that the Bayfront Center proposal includes shared parking which is embraced by the City; however, the fundamental need must be considered; that 400 public parking spaces are necessary to support the existing Downtown businesses and retail; that the vision is for employees of Downtown businesses to use the 400 public parking spaces located in the parking garage resulting in more turnover of parking spaces on the street for customer use; that the ideal situation is to sell 70 to 80 percent of the parking garage to employees working in the Downtown; that 700 public parking spaces are proposed even though 400 public parking spaces were identified as being necessary to support the Downtown businesses and retail and to accommodate the Sarasota Opera sO the City can sell the remaining parking spaces to future developments; that parking can lead to an economic stimulus. Vice Chair Shelin stated that treating the concept plan as a site plan is a concern as negotiation will be necessary regardless of the proposal selected; that the perception being given is the CRA is attempting to discredit a proposal. Ms. Dodd stated that the Staff proposal does not reject the concept of a conference center; that Staff must determine if the Palm Avenue parcel is the appropriate location to build a conference center or would another location be better suited. In response to a question by Vice Chair Shelin asking if the City is utilizing the study conducted by Walker Parking Consultants (Walker) to determine the necessary parking spaces, Ms. Dodd stated that Staff is utilizing a study conducted in 2004 by Tindale-Oliver and Associates, Inc. (Tindale-Oliver). In response to a comment by' Vice Chair Shelin indicating the use of a parking study conducted in 2004 to determine the current parking needs of the City is a concern, Ms. Dodd stated that the Tindale-Oliver study identifies the parking spaces needed in the Downtown. In response to a comment by Vice Chair Shelin indicating Staff is not listening to the comments by the citizens who indicated support for a mixed-use project on the Palm Avenue parcel or considering the reason for providing a 90-day extension to receive proposals from developers who had expressed an interest in the Palm Avenue site, Mr. Bartolotta stated that the City is proposing a mixed-use project as the Staff proposal includes a parking garage with a retail liner building and the remainder of the Palm Avenue site being sold for development, that the City has received interest in the purchase of the remainder oft the Palm Avenue site by many developers. In response to a comment by Vice Chair Shelin concerning the lack of a plan for the entire Palm Avenue site, Mr. Bartolotta stated that a Request for Proposals (RFP) would have to be issued to identify the minimum requirements as being parking, tax base, or a mixed-use project as mixed signals are being received from the CRA; that the Administration heard the CRA indicate Staff should evaluate the unsolicited proposals received from a developer who expressed an interest in building a conference BOOK2 Page 1688 02/17/09 2:30 P.M. BOOK2 Page 1689 02/17/09 2:30 P.M. center on the Palm Avenue site 90 days ago and other proposals; that Staff evaluated nine proposals as directed; however, evaluating nine proposals without any criteria is difficult. Vice Chair Shelin stated that the RFP process proposed by the Executive Director has failed in the past. Member Clapp stated that the RFP process was used with the last four failed proposals; that the four proposals failed because the developer changed the submission numerous times. In response to a question asked by Member Clapp asking the potential funds available for the Palm Avenue site, Mr. Lyons stated that the funds available were originally set aside for the Palm Avenue Parking Garage; that funds can be used for any purpose the CRA designates; that he does not have the projections of Tax Incremental Financing (TIF) funds at this time; however, property values have been decreasing, resulting in a decrease of TIF revenues; that the City will not have any available funds to build a parking garage in the future if the City decides to build the conference center/hotel proposal; therefore, the City only has one chance to provide adequate public parking Downtown. Member Kirschner stated that he disagrees with the interpretation of the motion made 90 days ago by Vice Chair Shelin as the motion was the CRA wanted Staff to evaluate the proposals and determine the process in addition to providing staging plans to avoid construction during the peak season; that hearing comments indicating the parking study is obsolete is surprising; and requested that Staff explain the comments of individuals indicating the City's parking study is obsolete, a parking garage with a retail liner building is no longer popular, and the criticism by Mr. Duany approximately one and a half year ago indicating the City did not have the courage to build a parking garage. Ms. Dodd stated that she recently met with Tindale-Oliver to review the figures included in the original parking study conducted in 2004: that no significant changes in the study area affecting the parking study were identified since the original study; however, changes have occurred in the adjacent areas such as the addition of parking spaces on Gulf Stream Avenue; that the additional parking spaces in the adjacent areas were required by the Zoning Code for development projects and should not be included in the public parking inventory; that Staff believes the figures in the original parking study conducted in 2004 are still valid; that initially, the requirement was for 400 public parking spaces which was reduced to 300 public parking spaces to improve the opportunity to negotiate during the RFP process for the development of the Palm Avenue site; than an issue with mixed-use is the operations of the parking garage as the users have different agreements for the use, operation and maintenance of the facility; that a reason the Whole Foods Parking Garage may not be utilized to capacity could be the varying uses for the different levels which can be confusing to the public. In response to a question by Member Kirschner asking if Staff has found any similar-sized municipalities which do not have a flourishing transit system but have a conference center to determine the feasibility, Ms. Dodd stated that the number of parking spaces dentified in the study conducted by Walker are believed site specific. Mr. Stancel stated that Staff received a conference center/hotel proposal from Corvus International, LLC, with 940 parking spaces and a proposal from Fairway Grande Development with 700 parking spaces; therefore, the number of 796 parking spaces proposed for the parking garage appears accurate; that stand-alone parking garages do not seem unpopular as various cities in the State have constructed stand-alone parking garages from 1997 to 2006. In response to a question by Vice Chair Shelin asking if Staff compared the revenues which will be generated by the parking garage/retail proposal compared to the revenues generated by a mixed-use project, Ms. Dodd stated that parking revenue was presented to the CRA in November 2008; that placing a conference center adjacent to the parking garage would add more users creating more revenue in the municipal parking garage; however, the. City would not receive all revenues generated from the parking garage with the Bayfront Center proposal. In response to a question by Vice Chair Shelin asking the projected revenues generated from a stand- alone parking garage, Ms. Dodd stated that the projected revenues are approximately $153,000 annually. In response to a question by Vice Chair Shelin asking the projected revenues generated from a mixed- use project, Ms. Dodd stated that the developer indicated the City would receive 60 percent of the projected revenues of approximately $500,000; however, Staff is unaware of how the figure of $500,000 was derived. Chair Palmer stated that the City needs a conference center; that the Palm Avenue site may not be the best location; that another site should be considered; that proposals requiring the City to undertake bonding will not be supported; that many people are no longer attending conferences as a result of the current economic situation. Member Atkins stated that a conference center is needed in the City; however, the Palm Avenue parcel does not appear the appropriate location for a conference center; that the City should speak with the developers of the Sarasota Quay property and the proposed Proscenium Project to determine if a conference center can be constructed in conjunction with those projects; that the City must satisfy some of the needs of the City to relieve some of the grief the City has caused the community for the past 10 to 20 years. Vice Chair Shelin stated that the CRA is having difficulty exhibiting leadership with the Bayfront Center Project; that the City should consider selling the Palm Avenue site; that the community supports Option 3. Mr. Bartolotta stated that Option 2 provides the sale of the Palm Avenue parcel at the recently appraised value of $9.1 million and use the funds to build a municipal-owned parking garage; that Githler Development had expressed an interest in purchasing the remainder of the Palm Avenue parcel to construct a hotel; that whether or not Githler Development would be willing to purchase the entire Palm Avenue site is not known. Mr. Stancel stated that Staff spent 180 days studying the problem prior to the 90-day period granted by the CRA; that the City should not sell the Palm Avenue parcel during the current economic time as the assessed property values have decreased and the City would suffer a significant loss. Chair Palmer stated that all the proposals submitted by the developers are good; however, the City and the County do not have sufficient funds to build a conference center and a parking garage; that the City must provide the necessary public parking Downtown; that the TIF funds will no longer be collected by the City in seven years which is another problem. Member Clapp stated that the element of the low cost of construction has not yet been mentioned; that one of the developers indicated a parking garage could be built for less than $11 million; that the cost of construction will increase in the future which is another concern. Mr. Kirschner stated that the drawings submitted by Mr. Githler and Mr. Dorr are impressive; that the project appears to have the ability to improve the Downtown; however, the City may not be able to accommodate the proposed Bayfront Center Project at this time due to the economic situation; that Urban Retailing Expert Bob Gibbs had previously indicated stores such as Apple Computer would not open a store in area which did not have immediate parking available; that the City could build a world class Leadership in Energy and Environmental Design (LEED) certified parking garage with impressive architecture; that Mr. Githler expressed an interest in the adjacent parcel regardless of the decision made by the CRA; that Sarasota Board of County Commissioner Nora Patterson indicated she was on the City Commission when the City purchased the Palm Avenue parcel; that the Palm Avenue parcel was not originally purchased for a mixed-use project. BOOK2 Page 1690 02/17/09 2:30 P.M. BOOK2 Page 1691 02/17/09 2:30 P.M. Mr. Bartolotta stated that the first recommendation is to direct Staff to prepare an RFP for design-build services for the design and construction of an approximately 700 space parking garage with a retail liner building and to explore the development of a conference center in other locations in the Downtown area; that preliminary architectural services would be brought to the CRA Advisory Board; that the City would bid a design-build concept. Chair Palmer stated that the CRA must indicate the level of financing the City is willing to contribute towards the parking garage/retail proposal to avoid any misunderstandings. Mr. Bartolotta stated that the City has a line item for the Palm Avenue Parking Garage in the TIF budget; that the available funds in the line item is what the City will contribute. Chair Palmer stated that she will support the majority of the CRA; however, the parking garage must have ai facade which is architecturally excellent. A motion was made by Member Clapp and seconded by Member Atkins to proceed with Option 1 to pursue a design-build for an approximately 700 space parking garage with a retail liner building and to continue to explore the development of a conference center in other locations in the Downtown area. Member Kirschner stated that the City should continue to commit to exemplary architecture on the Palm Avenue parcel, have a Leadership in Energy and Environmental Design (LEED) certified parking garage built, insure the parking garage is a Class A parking garage, and the CRA should seek input from retail specialists to ensure the retail spaces are constructed appropriately to attract future tenants. Chair Palmer called for a vote on the motion to proceed with Option 1 to pursue a design-build concept for an approximately 700 space parking garage with a retail liner building and to continue to explore the development of a conference center in other locations in the Downtown area, which carried by a 4-1 vote with Vice Chair Shelin voting no. 5. ADJOURN Chair Palmer adjourned the meeting at 8:06 p.m. LOU ANN R. PALMER, CHAIR ATTEST: Illy E Roly BILLYE E.GOBINSON, SECRETARY