MINUTES OF THE SPECIAL SARASOTA COMMUNITY REDEVELOPMENT AGENCY MEETING OF OCTOBER 15, 2007 PRESENT: Chair Lou Ann R. Palmer, presiding, Vice Chair Kelly M. Kirschner, Members Fredd "Glossie" Atkins, Richard Clapp, and Ken Shelin, 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 2:45 p.m. 1. APPROVAL RE: MINUTES OF THE SPECIAL COMMUNITY REDEVELOPMENT AGENCY MEETING OF OCTOBER 1, 2007 (AGENDA ITEM CRA-1) Chair Palmer noted Commission consensus to approve the minutes of the Special Community Redevelopment Agency meeting of October 1, 2007. 2. APPOINTMENT RE: COMMUNITY REDEVELOPMENT AGENCY ADVISORY BOARD (AGENDA ITEM CRA-2) Secretary Robinson stated that the terms of the following Board members have expired: Seat Requirement Dale Parks individual involved in planning or design in the Community Redevelopment Area Kathleen Baylis a representative of the Economic Development Board Mike Shafer individual involved in finance or banking Secretary Robinson continued that all are eligible for and have expressed an interest in reappointment, that no applications meeting the seat requirements are on file. A motion was made by Member Shelin and seconded by Member Clapp to reappoint Dale Parks, Kathleen Baylis, and Mike Shafer to the CRA Advisory Board. Vice Chair Kirschner stated that the appointments should be postponed until the future of the CRA Advisory Board is determined under Agenda Item CRA-3, Discussion Re: Appointment of additional members to the existing CRA Advisory Board or creating a separate CRA Advisory Board for the expanded Community Redevelopment Area into Newtown. In response to a question by Member Atkins asking for clarifiçation of the concern regarding reappointment of the CRA Advisory Board members expressed by the Vice Chair, Vice Chair Kirschner stated that the Executive Director has indicated having one CRA Advisory Board is preferable to creating a second CRA Advisory Board. Chair Palmer noted CRA consensus to postpone the reappointment of the CRA Advisory Board members until discussion of Agenda Item CRA-3 takes place. 3. DISCUSSION RE: APPOINTMENT OF ADDITIONAL MEMBERS TO THE EXISTING COMMUNITY REDEVELOPMENT AGENCY ADVISORY BOARD OR CREATING A SEPARATE CRA ADVISORY BOARD FOR THE EXPANDED COMMUNITY REDEVELOPMENT AREA INTO NEWTOWN (AGENDA ITEM CRA-3) Chair Palmer stated that a separate CRA Advisory Board consisting of six new members and three members of the existing CRA Advisory Board should be established; that the existing CRA Advisory Board will no longer exist when the current Community Redevelopment Area expires in 2016; that the BOOK2 Page 1656 10/15/07 2:30 P.M. BOOK 2 Page 1657 10/15/07 2:30 P.M. CRA Advisory Board for the expanded Community Redevelopment Area into Newtown would be the only CRA. Advisory Board after 2016. Member Atkins stated that the two Community Redevelopment Areas should have separate CRA Advisory Boards. Member Shelin stated that the option indicated by the Chair should be explored; that two CRA Advisory Boards cannot exist and operate independently of each other as the funds for the Newtown Community Redevelopment Area would originate from the Downtown Community Redevelopment Area and the members must work together. Member Clapp stated that the CRA can make a division of funds with each CRA Advisory Board indicating how the funds will be expended. In response to a question by Vice Chair Kirschner asking the reason for Staff's concern of having two CRA Advisory Boards, Executive Director Bartolotta stated that the reason is to avoid potentially conflicting direction being given by two CRA Advisory Boards on any given item; that conflict could be eliminated if the CRA makes a division of funds. Member Shelin stated that Staff should return with recommendations concerning the transition process. Chair Palmer stated that Agenda tems CRA-2 and -3 should be placed on the next CRA. Agenda. Attorney Fournier stated that the existing CRA Advisory Board was created by resolution; that a resolution could be drafted for each scenario and presented to the CRA at the next CRA meeting. Executive Director Bartolotta stated that the CRA should postpone the appointment of members to the existing CRA Advisory Board until the decision is made to create a separate CRA Advisory Board for Newtown or to create additional seats on the existing CRA Advisory Board. Chair Palmer noted CRA consensus to postpone the appointment of members of the existing CRA Advisory Board until the Administration provides direction as to whether to create a separate CRA Advisory Board or create additional seats on the existing CRA Advisory Board for the CRA to make a final decision; that the City's general policy is a member who has not been replaced continues to serve until a decision is made; that the three members of the CRA Advisory Board whose terms have expired should be notified of the action taken by the CRA. 4. APPROVAL RE: RECOMMEND APPROVAL TO THE CITY COMMISSION OF PROPOSED INITIAL REDEVELOPMENT AGREEMENT BETWEEN THE CITY OF SARASOTA AND BUCK LEITER PALM AVENUE DEVELOPMENT, LLC, PURSUANT TO REQUEST FOR PROPOSAL #06-61T (AGENDA ITEM CRA-4) Attorney Fournier gave a presentation concerning the recommendation for Commission approval of the proposed Initial Redevelopment Agreement between the City and Buck Leiter Palm Avenue Development, LLC, pursuant to Request for Proposals (RFP) #06-61T. Redevelopment Specialist Steven Stancel, Planning and Redevelopment Department, and Patrick Phillips, President, Economics Research Associates (ERA), came before the CRA. Redevelopment Specialist Stancel gave an overview of the history of the process of the Palm Avenue Redevelopment Project; and stated that the Palm Avenue Redevelopment Summary Matrix included in the Agenda back-up material outlines the original objectives of the RFP, the original proposal by the developer, and the current proposal; that the following modifications have been made to the original development program: Two stories have been added to the hotel as the concept design of the parking garage requires a condensation of the physical structure and Retail and restaurant space has increased by approximately 8,500 square feet as City regulations require retail be on the first floor of frontages on primary streets. Redevelopment Specialist Stancel continued that the architectural designs remain to be determined; that the architectural designs must receive Commission approval before the process continues to move forward. Redevelopment Specialist Stancel gave a presentation concerning the parking program requirements and the currently proposed parking project; and stated that the disadvantages of the current proposal for the project are fewer parking spaces will be available than originally proposed and the current agreement has a slightly higher parking demand; that the proposed project continues to meet the Zoning Code (2002 Edition) (Zoning Code) requirements. Redevelopment Specialist Stancel gave a presentation concerning the Financing Program, the Attainable Housing Program, and the Off-Site Improvement Program; and stated that an option to construct a roundabout at the Cocoanut Avenue and First Street intersection exists if the Commission is willing to participate financially. Redevelopment Specialist Stancel gave a presentation concerning the most recent concept plan for the Palm Avenue Development Project. Mr. Phillips gave a presentation concerning the financial analysis for the proposed Palm Avenue Development Project; and stated that the three major current challenges are the underlying real estate market, the credit market, and high general construction cost inflation; that the CRA should consider the proposed project works well within a constrained public financing environment; that the overall cost-share formula, the durability of the Phase Two option price, and the terms of attainable housing exceed the terms of the RFP; that the challenge of any private/public partnership is assuring the allocation of cost and benefits is equitable to both parties. Attorney Fournier stated that the following corrections should be to the Initial Redevelopment Agreement: Insert the word approximately" just prior to the number 453 under Section 2(a), Development Program, Move the word "overnight" to modify the words "hotel guests" rather than the word parking" under Section 2(d), Development Program, Correct the spelling of the word' "appurtenant" under Section 3(c), Land/Lease Options, Clarify the developer will not be requested to contribute the cost of the median cut towards the roundabout under Section 4(b), Financing, if the developer would not have been required to do sO to meet concurrency requirements, Reword the second sentence for consistency with the wording of the first sentence under Section 7(e), Compliance with Code and Regulations, and Insert the phrase "or the Leiter Group, LLC," after the John Buck Company under Section 13(b), Other Provisions. Attorney Fournier stated that impact of the Strand versus Escambia County, Florida, 2007 WL 2492294 (Fla.) case concerning bonds secured by a pledge of Tax Increment Financing (TIF) funds should be discussed during the presentation to the Commission concerning the same matter in the evening session BOOK2 Page 1658 10/15/07 2:30 P.M. BOOK2 Page 1659 10/15/07 2:30 P.M. of the October 15, 2007, Regular Commission meeting to avoid losing the focus on the Initial Redevelopment Agreement. In response to a question by Member Shelin concerning reserved parking spaces for the Sarasota Opera House, Attorney Fournier stated that Section 2 (b), Development Program, of the Initial Redevelopment Agreement makes reference to reserved parking spaces for the Sarasota Opera House. In response to a comment by Member Shelin indicating the Downtown Residential Overlay District (DROD) Ordinance does not include a provision for the waiver of fees, Attorney Fournier stated that an ordinance must be developed to include a provision indicating DROD fees can be waived upon the construction of the attainable housing units. In response to a question by Vice Chair Kirschner asking the reason for the additional two floors to the proposed hotel, Jack Buck, Vice President, the John Buck Company, came before the CRA and stated that the two additional floors are a result of changing the shape of the building; that the square footage of the proposed hotel remains the same. In response to a question by Chair Palmer asking about parking during the construction, Bill Moody, Principal, the John Buck Company, came before the CRA and stated that an attempt to complete the entire logistic plan without closing major streets will be made; that alleys will be significantly impacted due to deliveries to the construction site; that Palm Avenue will be affected for an overnight utility connection. Matthew Leiter, Vice President and General Manager, the Leiter Group, LLC, came before the CRA and stated that the developer is working with the City's Downtown Projects Coordinator to design a construction site staging plan; that weekly meetings to update the City will take place. In response to a question by Vice Chair Kirschner concerning the equal division of proceeds, Mr. Phillips stated that the equal division of proceeds was a mechanism designed to ensure the City would participate in the potential sale of the option of selling the condominiums which will assure the cost and benefits be equitably distributed. In response to a question by Vice Chair Kirschner concerning the letter of commitment to finance Phase One of the proposed hotel from the developer, Redevelopment Specialist Stancel stated that the letter of commitment will be included in the Final Redevelopment Agreement which is not yet available. A motion was made by Member Shelin, seconded by Member Clapp, and carried by a 4-1 vote with Vice Chair Kirschner voting no to recommend approval to the City Commission of the proposed Initial Redevelopment Agreement between the City of Sarasota and Buck Leiter Palm Avenue Development, LLC, pursuant to Request for Proposals #06-61T with the changes recommended by the Attorney. 5. ADJOURN Chair Palmeradjourned the meeting at 4:04 p.m. Lou ANN R. PALMER, CHAIR ATTESTS WE Robersey BILLY E. ROBINSON, SECRETARY