MINUTES OF THE SPECIAL SARASOTA COMMUNITY REDEVELOPMENT AGENCY MEETING OF MAY 4, 2009 PRESENT: Chair Richard Clapp, presiding, Vice Chair Kelly M. Kirschner, Members Fredd "Glossie" Atkins, Suzanne Atwell, and Terry Turner, Executive Director Robert J. Bartolotta, Attorney Robert M. Fournier, and Deputy Secretary Karen D. McGowan ABSENT: Secretary Billy E. Robinson, out of the Country The meeting of the Community Redevelopment Agency (CRA) was called to order by Chair Clapp at 3:02 p.m. 1. APPROVAL RE: MINUTES OF THE SPECIAL COMMUNITY REDEVELOPMENT AGENCY MEETING OF APRIL 6, 2009 (AGENDAI ITEM CRA-1) Chair Clapp noted CRA consensus to approve the minutes of the Special Community Redevelopment Agency meeting of April 6, 2009. 2. REPORT RE: NEWTOWN COMMUNITY REDEVELOPMENT AGENCY ADVISORY BOARD'S REGULAR MEETING OF APRIL 2, 2009: AND APPROVAL TO PLACE THE MATTER ON THE JUNE 4, 2009, JOINT CITY COMMISSION AND SARASOTA BOARD OF COUNTY COMMISSIONERS WORKSHOP AGENDA FOR DISCUSSION (AGENDA ITEM CRA-2) North Sarasota Redevelopment General Manager Lorna Alston and Economic Development Coordinator Dru Jones, Neighborhood and Development Services Department, came before the Commission. Ms. Alston stated that she looks forward to presenting items and moving forward with initiatives concerning the redevelopment of the Newtown area; that the CRA is welcome to ask any questions regarding any critical issues as discussions proceed. Ms. Jones gave the following report of the April 2, 2009, Newtown Community Redevelopment Agency (CRA) Advisory Board: Staff reported a recommendation was made by former Mayor Lou Ann Palmer to ask the Sarasota Board of County Commissioners (BCC) to discuss the County's participation in the Newtown Community Redevelopment Area beyond the sunset of the Downtown Community Redevelopment Area in 2016, - BCC Commissioner Carolyn Mason attended the April 2, 2009, Newtown CRA Advisory Board meeting to begin and carry forward the discussion concerning extending the County's participation in the Newtown Community Redevelopment Area until 2048, The Newtown CRA Advisory Board voted to recommend the CRA open a discussion with the BCC to extend the County's portion of the Community Redevelopment Area for the Newtown Area to the 40-year term, and Staff recommends a motion to receive the Newtown CRA Advisory Board report, invite the BCC to open a discussion regarding extending the County's portion of the Community Redevelopment Area to the Newtown area for the 40-year term of the Newtown Community Redevelopment Area by letter, and place an item on the Agenda of the June 4, 2009, City Commission and BCC Joint meeting for discussion. A motion was made by Commissioner Atkins, seconded by Vice Mayor Kirschner, and carried by a 5-0 vote to open discussion with the County regarding extending the County's participation in the Newtown Community Redevelopment Area for 40 years and place an tem on the Agenda of the June 4, 2009, Joint City Commission and Sarasota Board of County Commissioners meeting to further discuss the matter. 3. APPROVAL RE: REQUEST APPROVAL TO EXPEND UP TO $6.1 MILLION OF TAX INCREMENT FINANCING FUNDS FOR THE PURCHASE OF PROPERTY AND BOOK2 Page 1698 05/04/09 2:30 P.M. BOOK2 Page 1699 05/04/09 2:30 P.M. DEVELOPMENT OF A PARKING LOT LOCATED AT 495 SOUTH ORANGE AVENUE, SARASOTA, FLORIDA, 34236; 1623 LAUREL STREET, SARASOTA, FLORIDA, 34236; AND 307 SOUTH ORANGE AVENUE (AGENDA ITEM CRA-3) Executive Director Bartolotta stated that the CRA delayed taking any action concerning the previous recommendation to purchase the property located at 307 and 495 South Orange Avenue and 1623 Laurel Street and directed Staff to obtain a second appraisal at the April 6, 2009, CRA meeting; that the summary appraisal is included in the Agenda backup material; that the Commission authorized the Administration to commence negotiations on two of the three parcels approximately 18 months ago at which time an appraisal was conducted; that the Commission authorized the Administration to purchase land at or below the appraised value; that a second appraisal was conducted in January 2009 due to the deteriorated real estate market and indicated a relative value of $6,591,360; that a subsequent appraisal report dated April 17, 2009, was received the week of April 27, 2009, and indicated a relative value of $5,720,000; that the proposed purchase price of the three parcels is $5,467,000; that the average relative value of the two most recent appraisals is $6.1 million; that the average purchase price is 11.2 percent less than the average relative value and 4.5 percent less than April 17, 2009, appraisal report; that Staff's recommendation is to acquire the property at $5,467,000 and authorize the expenditure of approximately $600,000 for development of the three parcels; that the long-term parking needs for Burns Square would be met with the development of this property for parking. The following people spoke: Robin Harrington, representing the Coalition of City Neighborhoods Association (CCNA), indicating the CCNA examined and discussed the proposal to purchase land during the May 2, 2009, CCNA meeting which resulted in a two-thirds vote to recommend the CRA not proceed with the proposal as currently offered as a result of several factors and concerns, the subject site currently has a lease for parking which is underutilized, the City must consider whether the proposal is wise and a vitally necessary expenditure at this time as the City has a constrained budget, the use of Tax Increment Financing (TIF) funds is not acceptable as additional parking is provided on the subject site, the current economic environment requires a more financially cautious approach, and concerns of the legitimacy of negotiations and appraisals still remain. John McGruder inquiring whether saving approximately 4 percent of a proposed purchase price of $5.5 million and a relative value of $5.7 million is a good investment, indicating priorities have changed with the decrease in the economy, the proposed recommendation to purchase the parcels of property is based on an outdated model, the current proposal will require the City to borrow funds at 4 to 5 percent interest rate at a time when the City is faced with difficult fiscal challenges, and the timing of proposal for the purchase of the parcels is poor. Valerie Buchand, representing the residents of Newtown, indicating the purchase of the three parcels using TIF funds is a significant concern, Newtown has been used as a reason to obtain TIF funds and other grants for many years which have been used for projects in other parts of the City, the Newtown residents deserve to use TIF funds to redevelop Newtown during the current difficult economic times, the City has continuously used TIF funds for projects the City deems appropriate except projects in Newtown, urging the Commission to vote against the purchase of the three parcels at this time. Barbara Langston, representing the Amaryllis Park Neighborhood Association, indicating she has watched the past two State of the City Addresses at Commission meetings in which Newtown is said to be the first priority, the City has initiated the New Beginnings in Newtown Initiative, inquiring what occurred to the TIF funds from 1986 to 2009, what has the City done for Newtown prior to 2003, asking if the Commission understands the City of Sarasota Comprehensive Newtown Redevelopment Plan through 2020, the reason the Commission allows a runaway train to control the City, how the City can spend a significant amount of funds when people are losing their jobs and City services are being cut, and indicating actions speak louder than words. Denise Kowal, representing Burns Square, indicating urban planning and redevelopment is a complicated issue, many people with money are circling the area and have the ability to purchase blocks of property very easily, businesses have to compete with each other for parking, important businesses should be considered anchors rather than competing businesses, a parking structure should be constructed to help businesses thrive, and requesting the Commission follow through with the promises to the merchants of Burns Square. Michael Furen, Attorney, Law Firm of Icard, Merrill, Cullis, Timm, Furen, and Ginsburg, representing Michael Saunders, indicating the 2008 tax assessed value of the site is $6,467,500, the site was appraised at $6.6 million by Richard Bass, Appraiser, Bass and Associates, Inc., a second appraisal was conducted by James Piro, Appraiser, Piro and Associates, with the site appraised at $5.72 million, the appraisal conducted by Mr. Piro is based on sales well removed from the site, the current proposal is a once-in-a-lifetime opportunity for the City to obtain a key property which is essential to implement the policies of the Downtown Master Plan 2020. Michael Saunders indicating she did not approach the City but rather the City Manager approached her in an attempt to purchase the three parcels, she understands the difficult economic times, she would not be attempting to sell the parcels if the real estate market were different, she would not want the City to take away funds away from other areas which need the TIF funds more than Burns Square, the purchase of the three parcels can be revisited in the future if Commission believes now is not an appropriate time and if the three parcels are still available for purchase. Susan Chapman indicating the shortfall in TIF funds requires the City to reorder priorities, the situation with the TIF funds was different when the City was requested to acquire property to provide additional parking for the merchants in Burns Square, a more careful stewardship of funds is necessary due to the limited TIF funds received, requesting the Commission carefully consider a $32,000 annual expenditure over an $800,000 annual expenditure which will be the cost if the City purchases the three parcels, indicating the current parking lot leased by the City is rarely found full, the need for parking in Burns Square is recognized, and the $11 per square foot lease-back provision is a conçern. John Harshman indicating both appraisers are respected appraisers, an appraisal is an educated opinion, the highest and best use for the parcels is believed to be a mixed-use project, the demand for parking will be absorbed by projects planned for construction when the economy improves, no one is considering to purchase the 2.2 acre site located on Ringling Boulevard near Orange Avenue, centralized parking in urban areas is fine, however, the payment method for centralized parking must be determined. Dick Sheldon indicating sound judgment would say the City should not consider the purchase of the three parcels of property at this time, using TIF funds to purchase a parking lot is really absurd, and asking the Commission to vote against the expenditure of TIF funds for the purchase of the three parcels of property. In response to a question by Member Turner asking if TIF funds can be legitimately utilized for General Fund expenditures, Mr. Bartolotta stated that TIF funds have been used to reimburse the General Fund for services such as a Downtown Planner and the Police street-walking patrols in the Community Redevelopment Area; that the Administration advised the Commission during the April 23, 2009, Commission Workshop some of the General Fund expenditures reimbursed by TIF funds would no longer be charged to the TIF Fund if the TIF revenues are not adequate. Chair Clapp stated that the practical demand for public parking in Burns Square is 391 parking spaces on an average weekday and 500 on an average weekend; that the City currently has 127 on-street parking spaces and 63 off-street parking spaces resulting in a shortage of approximately 200 parking spaces on a weekday and 300 parking spaces on a weekend according the parking demand data included in the Agenda backup material; that the CRA had previously discussed the Valencia lot located at 635 South Orange Avenue as a possible suitable parking alternative site. BOOK2 Page 1700 05/04/09 2:30 P.M. BOOK: 2 Page 1701 05/04/09 2:30 P.M. In response to question by Member Atwell asking the possible use of the air rights at the County Administration Building and the Valencia lot located at 635 Orange Avenue and Dolphin lot located at 1530 Dolphin Street as alternate sites for public parking, Mr. Bartolotta stated that the County's Administration Building has two parking lots; that the southern lot has air restrictions and the northern lot does not; however, the northern lot is further away from the Burns Square area and the distance was expressed as a concern; that the construction of a pedestrian thoroughfare was proposed to help eliminate the parking demand; that the use of the parking lots by patrons after 5:00 p.m. is allowed at the County's Administration Building; that TIF funds can be used for the Valencia property which can provide 99 additional public parking spaces; that Staff would like to perform design work if the CRA would like to pursue the purchase of the property as Staff does not know if the site is suitable for the proposed use; that the Dolphin lot is not believed to be a good alternative due to the current commercial activity on the property. In response to a question by Member Turner asking if the 391 parking space demand on an average day is throughout the day or during peak hours, Parking General Manager Susan Dodd, Neighborhood and Development Services Department, came before the CRA and stated that the 391 parking space demand on an average day is during peak hours; that former Parking Manager Robert Kamper conducted a walking survey to determine the parking demand. In response to a question by Member Turner asking if the peak hours are during the day or evening, Ms. Dodd stated that the peak hours are during the day. In response to a comment by Vice Chair Kirschner indicating the parking data does not include the property currently leased by the City and the County's parking spaces, Ms. Dodd stated that the data includes the property currently leased by the City; that the County's parking spaçes are not included as the public is not using the spaces during evening hours and the weekends. In response to a question by Member Turner asking the location at which the vehicles are being parked when the approximately 190 available parking saces are in use, Ms. Dodd stated that vehicles are either parking out of the Burns Square area or may be parking illegally. A motion was made by Vice Chair Kirschner and seconded by Member Atwell to table the purchase of the property at this time, continue to monitor the market, and continue to lease the property from Michael Saunders. Chair Clapp passed the gavel to Vice Chair Kirschner. A motion was made by Chair Clapp and seconded by Member Atwell to amend the main motion to consider the Valencia lot located at 635 South Orange Avenue and consider the construction of a pedestrian thoroughfare from the County's southern lot to determine if the long-term parking needs of Burns Square can be met. In response to a question by Mr. Bartolotta asking if Staff would have the ability to obtain appraisals and perform preliminary designs for the Valencia lot located at 635 South Orange Avenue to determine if the site is suitable for a parking garage, Chair Clapp as the maker of the amendment with the approval of Member Atwell as the seconder modified the amendment to the main motion to allow Staff to obtain appraisals and perform preliminary designs of the Valencia lot located at 635 South Orange Avenue to determine if the site is suitable for a parking garage. Vice Chair Kirschner called for a vote on the amendment to the main motion to consider the Valencia lot located at 635 South Orange Avenue and the construction of a pedestrian thoroughfare from the County's southern lot to determine if the long-term parking needs of Burns Square can be met and allow Staff to obtain appraisals and perform preliminary designs of the Valencia lot located at 635 South Orange Avenue which failed by a 2-3 vote with Vice Chair Kirschner and Members Atkins and Turner voting no; and returned the gavel to Chair Clapp. Chair Clapp called for a vote on the motion to table the purchase of the property at this time, continue to monitor the market, and continue to lease the property from Michael Saunders, which carried by a 5-0 vote. 3. ADJOURN Chair Clapp adjourned the meeting at 3:57 p.m. Ridhnadl Cgp RICHARD CLAPP, CHAIR ATTEST: he KAREN D. MCGOWAN, DEPUTY SECRETARY BOOK: 2 Page 1702 05/04/09 2:30 P.M.