BOOK3 Page 31713 10/04/10 2:30 P.M. MINUTES OF THE SPECIAL SARASOTA COMMUNITY REDEVELOPMENT AGENCY MEETING OF OCTOBER 4, 2010 PRESENT: Chair Kelly M. Kirschner, presiding, Members Suzanne Atwell, Richard Clapp, and Terry Turner, Executive Director Robert J. Bartolotta, Attorney Robert M. Fournier, and Secretary Pamela M. Nadalini ABSENT: Vice Chair Fredd "Glossie" Atkins The meeting of the Community Redevelopment Agency (CRA) was called to order by Chair Kirschner at 3:18 p.m. 1. APPROVAL RE: MINUTES OF THE SPECIAL COMMUNITY REDEVELOPMENT AGENCY MEETING OF SEPTEMBER 20, 2010 (AGENDA ITEM CRA-1) Chair Kirschner stated that the motion made by Vice Chair Atkins for Agenda Item CRA-2, Report Re: Joint Board Report of the Downtown and Newtown CRA Advisory Boards and the proposed CRA policies for the use of Tax Increment Financing (TIF) funds for the Downtown and Newtown Community Redevelopment Areas should be clarified to indicate the one-third allocation for affordable housing was reallocated in equal parts to the Downtown and Newtown Community Redevelopment Areas. Chair Kirschner noted CRA consensus to approve the minutes of the Special CRA meeting of September 20, 2010, as clarified. 2. REQUEST RE: DISPOSITION OF THE RETAIL SPACE IN THE PALM AVENUE MIXED-USE GARAGE (AGENDA ITEM CRA-2) Purchasing Manager Mary Tucker, Financial Administration Department, and Chief Planner Steven Stancel, Neighborhood and Development Services Department, came before the Commission. Mr. Stancel stated that Staff will be providing a recommendation for the use of retail space in the Palm Avenue Parking Garage; however, other options for the use of retail space can still be considered and gave a computer-generated oresentation concerning the disposition of retail space which can be divided into eight spaces of approximately 1,600 square feet and one 600 square foot retail space on the northern side of the Palm Avenue Parking Garage, interest expressed by businesses to purchase the retail space, and advantages and disadvantages of selling versus leasing retail space. A discussion ensued concerning the perception of the City's being in competition with local businesses and property owners. Mr. Stancel gave a computer-generated presentation concerning a financial analysis of the sale versus leasing of retail space including the marketing of the property north of the Palm Avenue Parking Garage. A discussion ensued concerning the generation of positive cash flow from the application of lease payments to the amount borrowed by the City, the cost allocation for Staff time, all costs associated with the construction of the Palm Avenue Parking Garage including the approval process, and the annual rents not including finance charges. Executive Director Bartolotta stated that the CRA should consider the potential vacancy rates due to the current economic situation when making a decision. Mr. Stancel stated that Staff compared the existing market with appraised values; that a list of 70 spaces of office and retail space available for lease and 20 spaces available for sale located in the urban core is included in the Agenda backup material; and gave a comparison overview concerning the cost of existing vacant spaces and the retail space proposed for the Palm Avenue Parking Garage and a computer- generated presentation concerning the restriction of user types and the advantages and disadvantages of controlling the types of tenants who lease or purchase the retail space. Mr. Stancel stated that Staff recommends the CRA request the Commission to direct Staff to develop an invitation to bid and return with a subsequent negotiated contract for the purpose of selling the retail space as identified in the Palm Avenue Mixed-Use Garage Plan with the following conditions: The City obtain an updated appraisal outlining the estimated value per square foot for the retail space, The invitation to bid shall include the appraisal as the required minimum bid, Deed restrictions shall be placed on the property to require all potential users be retailrestaurant establishments which will be defined in the invitation to bid, The deed restrictions shall indicate the Commission has the right to waive the requirement for retail use in the future by a super-majority vote following the receipt of a proposal outlining an alternate use of the space, and The identified deed restrictions shall expire at the end of a ten-year period from the date of closure on the sale of the property. Mr. Stancel continued that Staff believes the selling of the retail space is the most expeditious process; that a different approach can be pursued if a minimum bid is not received. A discussion ensued concerning Staffs obtaining a report or analysis regarding the proposal from the Downtown CRA Advisory Board. The following people spoke: Eileen Hampshire indicating she is representing a group of gallery owners and a restaurateur interested in purchasing the retail space located at the Paim Avenue Parking Garage, the Request for Proposals (RFP) should require the units be owner-occupied to minimize the possibility of an empty storefront, the retail mix is very important, and Palm Avenue should be maintained as the avenue of the arts. David Dabbert indicating his business may be seeking a new location as the building his business currently occupies has been condemned, he is part of the group mentioned by Ms. Hampshire, the City should attempt to continue to maintain Palm Avenue as the avenue of the arts as many people visit the City as similar stores are not found in the Tampa Bay and Orlando areas, and the hope is the City will continue to consider to retain the quality of stores and attractions. A discussion ensued concerning the retail space having the necessary amenities for a restaurant such as ventilation, disposal of garbage, and grease traps, the assignment of parking spaces if the retail spaces are sold, and the ability to divide and resell retail spaces if the entire space Is purchased by one group. In response to a question by Chair Kirschner asking if requiring the retail spaces be owner-occupied is supported by Staff, Mr. Stancel stated that Staff recommends against a requirement the retail spaces be owner-occupied as the restriction could potentially limit the sale of the retail spaces. In response to a question by Member Clapp asking if language could be added to the invitation to bid which indicates a business must be opened by a specified date, Mr. Stancel stated that Staff intends to include such language in the invitation to bid; however, Staff did not want to present the CRA a list of conditions at the present meeting; that Staff can present the invitation to bid to the Commission prior to its issuance if the CRA desires. In response to a question by Member Turner asking if Staff has the ability to reject all bids if a minimum bid is not received, Ms. Tucker stated yes. BOOK3 Page 31714 10/04/10 2:30 P.M. BOOK3 Page 31715 10/04/10 2:30P.M. A discussion ensued concerning the inclusion of a minimum bid requirement in the invitation to bid. Attorney Fournier stated that the CRA is not restricted from negotiating directly with a known interested party. Mr. Stancel gave a presentation concerning the recommended process to identify the type of anchor tenants which would attract pedestrian traffic at the request of Chair Kirschner. Member Clapp stated that delaying a decision until the Downtown CRA Advisory Board has an opportunity to review and provide a recommendation to the CRA is supported; that he is not comfortable with making a decision with secondhand information received from commercial realtors; that hopefully, the Downtown CRA Advisory Board can meet prior to its next scheduled meeting; that the sale of retail spaces is generally supported. Member Atwell stated that she is not certain an appropriate decision can be made without receiving input from the Downtown CRA Advisory Board; that a significant concern is the types of businesses using the retail spaçe; that the future construction on the property located north of the Palm Avenue Parking Garage is critical to the CRA's decision about the retail space. Member Turner stated that he is comfortable with obtaining input from the Downtown CRA Advisory Board; that the belief is selling rather than leasing the space is not fiscally imprudent of the CRA. Chair Kirschner noted CRA consensus to delay a decision at this time to allow the Downtown CRA Advisory Board to schedule a special meeting to discuss the issue of selling versus leasing the retail space under the Palm Avenue Parking Garage. In response to a question by Chair Kirschner asking the date of the next Downtown CRA Advisory Board meeting, Mr. Stancel stated that the Downtown CRA Advisory Board has a special meeting scheduled for October 28, 2010. Chair Kirschner stated that the Downtown CRA Advisory Board should discuss the matter at the October 28, 2010, Special Downtown CRA Advisory Board meeting. A motion was made by Member Atwell, seconded by Member Clapp, and carried by a 4-0 vote to extend the meeting beyond 4:30 p.m. 3. ADJOURN Chair Kirschner adjourned the meeting at 4:17 p.m. KÉLLY M. KIRSCHNER, CHAIR AT D Nodalo) PAMELA M. NADALINI, SECRETARY