Book 3 Page 31857 10/02/17 2:30 P.M. MINUTES OF THE SPECIAL SARASOTA COMMUNITY REDEVELOPMENT AGENCY MEETING OCTOBER 2, 2017 PRESENT: Chair Shelli Freeland Eddie, Vice Chair Liz Alpert, Members, Jen Ahearn-Koch, Hagen Brody and Willie Charles Shaw, 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 Freeland Eddie at 2:55 p.m. 1. APPROVAL RE: MINUTES OF THE SPECIAL SARASOTA COMMUNITY REDEVELOPMENT AGENCY REGULAR MEETING OF AUGUST 21, 2017 (AGENDA ITEM CRA-1) Member Ahearn-Koch stated that a few scrivener's errors will be provided to the Office of the City Auditor and Clerk for the minutes of the August 21, 2017, Special Meeting of Community Redevelopment Agency. AI motion was made by Member Shaw, seconded by Vice Chair Alpert, and carried by a 5-0 vote to approve the minutes of the August 21, 2017, Special Meeting of Community Redevelopment Agency as presented with edits for scrivener's errors. 2. APPROVAL RE: NEWTOWN COMMUNITY REDEVELOPMENT AGENCY ADVISORY BOARD REQUEST FOR APPROVAL OF TAX INCREMENT FINANCE (TIF) FUNDING IN THE AMOUNT OF $100.000 FOR PARTNERSHIP BETWEEN LEGAL AID OF MANASOTA AND THE CITY OF SARASOTA FOR THE "NO PLACE LIKE HOME" TITLE CLEARANCE PROGRAM: AND $100,000 FOR COMMUNITY INVOLI VEMENT PROGRAMS IN THE AMOUNT OF $100,000. (AGENDA ITEM CRA-2) Chairman Terrill Salem of thel Newtown Community Redevelopment. Agency Advisory Board, General Manager Economic Development Steven Stancel, Planning Department, CEO Linda Harradine of Legal Aid of Manasota, Pro Bono Coordinator Pamela Fields, Legal Aid of Manasota and Pro Bono Coordinator Allison Archibald, Real Property, Probate, and Trust Law section of the Florida Bar came before the Commission and displayed graphics on Chamber monitors. Mr. Stancel stated that on August 21, 2017, the Community Redevelopment Agency (CRA) reviewed and accepted the Newtown Community Redevelopment Agency Advisory Board (NCRAAB) Report for July 13, 2017; that during the. July 13, 2017, Newtown CRAAdvisory Board meeting the Board voted 8-0 to recommend approval of Tax Increment Finance (TIF) funding in the amount of $100,000 for a Property Title Clearance Program, with $50,000 coming from reallocated funds from the completed Newtown Entrance Plazas project; that an additional $50,000 in reallocated funds coming from the completed First Street U.S. 41 to Pineapple Avenue project; that the funds would be used in partnership for the pilot program being established by Legal Aid of Manasota and The Real Property, Probate & Trust Law Section of the Florida Bar; that the project will help Newtown home owners clear title issues, reduce concerns of gentrification and help to stabilize neighborhoods by maintaining property ownership within the community; that clear title issues inhibit eligibility for Office of Housing and Community Development (OHCD) and other federal funding benefits, the homestead exemption, and the refinancing of properties; that title issues can cause problems with home insurance and can often cause properties to be tied up in lengthy probate matters; that Legal Aid Manasota Legal Services will provide pro bono services or services at little cost; that program funds will be used for such things as marketing and outreach, title search services, and recording fees; that the project meets the City of Sarasota Strategic Plan, Goal 2, : Key Action 2.2, "Address gentrification as home values increase in historic neighborhoods. Mr. Stançel further stated that during the July 13, 2017, Newtown CRA Advisory Board meeting, the Board voted 8-0 to' reçommend approval of Tax Increment Finance (TIF) funding in the amount of $100,000 for community involvement programs; that the proposed funding would come from the Tax Increment Finance (TIF) Fund Balance; that programs would promote and assist positive community involvement informing residents about economic development education, health care access, marketing opportunities, and financial budgeting; that specific programs will include the following: Continue Community Entrepreneur Opportunity (CEO) business development educational courses. The CEO program is a partnership with CareerSource Suncoast to support entrepreneurial activity. Professional business consultants instruct up to two 8- or 12-week courses per year for approximately 10 to 15 persons each. Primary funding is provided with bank Community Reinvestment Act funds, which is managed by CareerSource; and County Economic Development funds supplement class costs and continued counseling services. Support Sarasota Memorial Healthcare (SMH) Center in Newtown assisting with community involvement events to increase resident and visitor awareness about the services available. Implement marketingwayfinding projects which promote businesses in the community. Staff will meet with business owners to determine types of visibility which would positively impact businesses and develop promotional products such as signage, banners, websites, advertisement, brochures with maps, etc. Support establishment of a neighborhood financial institution along the Martin Luther King (MLK), Jr., Way corridor developing local financial programs and budgeting educational services. Mr. Stancel stated that the programs meet the City of Sarasota Strategic Plan, Goal 2, Key Action 2.4, "Continue to support Newtown's efforts to maintain the historic foundation of the community, to increase educational opportunities and economic development for residents, and to secure convenient health care access for north Sarasota." In response to questions from Chair Freeland Eddie asking about the budget, the costs of thel NCRAAB project, the number of properties which have been identified by Staff for receiving the helpful benefits which the project would provide, and questions of the ways in which the City will perform outreach to the community, Mr. Stancel stated that Staff is looking to utilize the Property Title Clearance Program to identify approximately 45 houses per year over the next three years; that the amount of $100,000 for the "No Place Like Home" Title Clearance Program should be enough to cover the projected costs; that the City of Philadelphia, Pennsylvania, utilizes a similar program for residents with the average cost being $1,200 per case; that Staff utilized the Community Development Block Grant (CDBG) program to identify eight current properties locally; that nearly 50 properties within the City have been identified by Staff, that of the 50 properties many have numerous names on the deed as the title holder; that many meetings for purposes of community outreach will occur. Ms. Harradine stated that the CDBG funding will be available to Staff to outreach and to seek more homes within the community which could benefit from the program. In response to a question from Chair Freeland Eddie asking if CRA Staff office hours will be available locally, Ms. Harradine stated that CRA Staff has partnered with the Sarasota Memorial Healthcare (SMH) Center in Newtown where one Staff member will be located; that a future meeting at the Robert L. Taylor Community Complex (RLTCC) will occur for community outreach; that 22 lawyers in and around the City have volunteered time and effort towards the project. Member Shaw stated that the CRA Staff and the ManaSota League of Cities have worked together in the past to halt gentrification which is occurring in the Newtown area; that the "No Place Like Home" Title Clearance Program is initiated to help the residents of the community to correct home titles as well as helping to retain the houses in the area. Book 3 Page 31858 10/02/17 2:30 P.M. Book 3 Page 31859 10/02/17 2:30 P.M. In response to a question from Member Brody asking what Staff will decide if met with the issue of contested titles and litigation of the identified properties along with how the funding in the amount of $100,000 for partnership between legal aid of ManaSota and the City of Sarasota for the "No Place Like Home" Title Clearance Program will be allocated, Ms. Harradine stated that the extra funding may be needed as clearing the titles of certain properties may be more difficult than others; and Mr. Stancel stated that all the money provided will be funded toward direct costs of the Title Clearance Program; that the completed Newtown Entrance Plazas project will provide $50,000 from reallocated funds; that the completed First Street and U.S. 41 to Pineapple. Avenue project will provide an additional $50,000 in reallocated funds. Chair Freeland Eddie stated that the project is supported; that Staff should create a budget to itemize the specifics of projects to which funding willl be directed; that the current amount of funding for the project may not be enough which would create multiple issues; that the project budget should be higher as each property will have different issues which may cost more than another home. In response to questions from Member. Ahearn-Koch asking if the Title Clearance Program is replicated from a pilot program and if the statistics from the pilot program have been used in the City, Ms. Harradine stated that the pilot program incorporated with Real Property, Probate, and Trust Law Section of the Florida Bar provides funding which has been newly introduced in the State of Florida; that the program is similar to a program in Philadelphia, Pennsylvania, with an average cost of $1,200 and 35 hours of legal aid per case. In response to a question from Chair Freeland Eddie asking the next steps for the project after approval, Ms. Harradine stated that Staff will work toward completion of the project plans within a few months; that Staff must wait for the issuance of the grant to continue with plans; that the provided sub grant would last for a two-year period with an option to renew. Member Shaw stated that the TIF and the CRA funding sources within the City could be utilized if the funds earmarked for the project were to reach a low point. Executive Director Barwin stated that Staff is thanked for thei initiative and work performed on the CRA: and the Title Clearance Program. AI motion was made by! Member Shaw, seconded by Member Brody, and carried by a 5-0 vote to approve the Newtown Community Redevelopment Agency Advisory Board (NCRAAB) request for approval of Tax Increment Finance (TIF) funding in the amount of $100,000 for a partnership between legal aid of ManaSota and the City of Sarasota for the "No Place Like Home" Title Clearance Program. Member Shaw stated that Staff is thanked for the work and opinions provided regarding the Title Clearance Program. Mr. Stancel displayed graphics on the Chamber monitors concerning the Community Involvement Programs and continued the presentation that City Staff recommends the Community Redevelopment, Agency provide a recommendation to the City Commission to approve Tax Increment Finance funding of $100,000 for the Community Involvement Programs. In response to a question and a comment from Member Shaw asking about the Economic Development Corporation (EDC) of Sarasota County and the benefit the City receives regarding the current project and indicating businesses owned by persons of color who meet the demographics of the community should receive top priority, Mr. Stancel stated that Mark Huey, President and Chief Executive Officer, Economic Development Corporation of Sarasota County, has contacted Staff to complete the current project as well as work on prospective future projects. In response to questions from Chair Freeland Eddie asking how much of thet funding for the community projects will be allocated and how the project will be advertised to the community and the Newtown Corridor specifically, Mr. Stancel stated that the Continue Community Entrepreneur Opportunity (CEO) business development educational courses will cost approximately $28,000; that a Wayfinding System may cost approximately $30,000 to $40,000; that a satellite bank which provides other banking services may be built along MLK' Way. In response to a question from Member Shaw asking if the advertising work performed by Staff is duplicative of the advertising costs for which the City already pays, Mr. Stancel stated that Staff is aware of the local issues regarding the lack of opportunity and resources within the Newtown community; that Staff and the NCRAAB plan to combat the matter with an approach to keep everything associated with the project local. In response to questions from Member Brody asking if Staff has spoken to any other advertising firms to obtain ideas and opinions and exactly the project on which the funding will be spent, Mr. Stancel stated that none of the money will be allotted for Staffing purposes; that the City has funded the operating costs using the General Funds account; that the TIF will be utilized to help fund the Community Involvement Programs. Mr. Salem stated that research regarding the federal policies concerning banks and CRAS was completed; that banks are required by federal law to provide services to urban areas which utilize a CRA; that Fifth Third Bank was contacted to determine interest in the bank's helping the Newtown community; that a bank or some type of similar financial service should be constructed on MLK Way which is very important to the success of any community. In response to a question from Member Brody asking the projects on which thet funds will be spent, Mr. Stancel stated that the CEO program will educate residents with classes which the City will help fund; that the City will spend roughly $15,0001 to $20,000; that a wayfinding system to be implemented within the Newtown community would be very beneficial to the community; that Newtown residents would benefit from local banks fori financial services as similar resources are not available. Member Brody stated that the explanation of where the funding for the Community Involvement Programs will be spent is too broad; that the idea of a blank check cannot be supported. Chair Freeland Eddie stated that a wayfinding system or road map is needed within the Newtown area to help residents locate local businesses; that banks and financial institutions are needed and are critical for the success of a community; that the CRA: should not relinquish any rights to any bank due to the federal laws and regulations dealing with banks and CRA policies; that advertising is important in the Newtown community to attract other potential businesses for the same area; that a budget for Community Involvement Programs must be created by Staff and the Newtown CRAI to make further plans; that the CRAI budget could be amended by the City at a later date if necessary. Member Shaw stated that the mobile transportation company I-Ride was approved for use by the Commission for $500,000; that the City has provided money to similar projects in the past; that the Newtown community projects should be treated equally and should not be repeatedly heavily scrutinized. A motion was made by Member Shaw, seconded by Member Ahearn-Koch, to approve the Newtown Community Redevelopment. Agency Advisory Board (NCRAAB) request for approval of Tax Increment Finance (TIF) funding in the amount of $100,000 for Community Involvement Programs. Chair Freeland Eddie stated that I-Ride faced numerous questions from the Commission as well; that the Commission seeks to obtain information to protect the integrity of the projects. Member Ahearn-Koch stated that the proposal for the Community Improvement Programs is well established; that a specific financial breakdown of how the funds will be allotted is not currently necessary; that locating a financial institution in the Newtown Community is very important; that the motion will be supported. Member Brody stated that the I-Ride discussion took place during the tenure of a previous Commission; that questions of funding and budget specifics are asked for nearly every project which comes before the Commission and not just the Newtown Community projects; that the residents and taxpayers of the City should know where the money for projects will be allotted; that approving funds with such a vague idea of where the money will be spent is irresponsible. Book 3 Page 31860 10/02/17 2:30 P.M. Book 3 Page 31861 10/02/17 2:30 P.M. Member Shaw stated that comments made were not an attack on another Member personally; that the Newtown Community should be protected due to the prolonged neglect. Discussion ensued regarding clarification regarding the exact specifics of the motion by Member Shaw. Vice Chair Alpert stated that the motion to approve Tax Increment Finance (TIF) funding in the amount of $100,000 for Community Involvement Programs is supported; that an exact outline of how each dollar would be spent can be provided at a later CRAI Meeting. Chair Freeland Eddie called for a vote on the motion to approve the Newtown Community Redevelopment Agency Advisory Board (NCRAAB) request for approval of Tax Increment Finance (TIF) funding in the amount of $100,000 for Community Involvement Programs, which carried by a 4-1 vote with Member Brody voting no. 3. APPROVAL RE: NEWTOWN COMMUNITY REDEVELOPMENT AGENCY ADVISORY BOARD REQUEST FOR APPROVAL OF THE NEWTOWN BUSINESS ASSISTANCE GRANT PROGRAM WITH A COMBINED TOTAL OF $590,000 IN TAX INCREMENT FINANCE (TIF) FUNDING AVAILABLE TO BUSINESSES. (AGENDAI ITEM CRA-3) Chairman Terrill Salem of the Newtown Community Redevelopment Agency Advisory Board, and General Manager Economic Development Steven Stancel, Planning Department, came before the Commission. Mr. Stancel displayed graphics on the Chamber monitors and stated that on August 21, 2017, the Community Redevelopment Agency (CRA) reviewed and accepted the Newtown Community Redevelopment Agency Advisory Board (NCRAAB) Report presented for the July 13, 2017 ; that at the July 13, 2017, Newtown CRA Advisory Board meeting the Board voted 7-0 to recommend approval of a grant program which would incentivize business owners to locate new businesses or improve existing establishments by offering financial assistance in the form of grants; that the maximum grant amounts are $40,000 and the business must match the total project cost in the amount of 50 percent if the applicant lives outside of the Newtown District or 30 percent if the applicant lives within the Newtown District; that the program supports business retention and new business activity on the Dr. Martin Luther King, Jr. (MLK) Way Corridor and adjacent thoroughfares within the Newtown CRA; that funding for the program of $590,000 exists in previously approved TIF funds set aside for business development in Newtown. Some key points of the proposed program: Grants can be used for capital costs for permanent improvements made inside or outside of the business. Applicants must be able to show that "but for" the assistance, the proposed business would not be able to complete the project. Businesses must provide three price quotes for any proposed capital improvements. Businesses must pay for the improvements upfront and receive reimbursements from the City after review of receipts in accordance with the City procurement process which is a 7-1 to 10-day period Business plans, proof of business experience or classroom attendance in a business program is required. Lessees can receive grants with approval of property owners but must have a minimum three-year lease in place at the time of receipt of the grant. Mr. Stancel further stated that the program meets the City of Sarasota Strategic Plan, Goal 2, Key Action 2.4, "Continue to support Newtown's efforts to maintain the historic foundation of the community, to increase educational opportunities and economic development for residents, and to secure convenient health care access for north Sarasotal"; that City Staff recommends that the Community Redevelopment Agency recommend approval of the $590,000 in funding for Newtown Business Assistance Grant program to the City Commission; and further recommend one of the following: 1. Approval for the Grant Program as presented. 2. Approval of the Grant Program with revisions. 3. Table the proposed Grant Program and send back to the Newtown Community Redevelopment Agency Advisory Board for further review with direction for recommended changes. Chair Freeland Eddie stated that the Grant Program proposal still has numerous issues which must be addressed; that many new businesses lack the funding to pay for new buildings or office space due to the establishment as a new company; that prospective business applicants may not be approved initially for any loans due to the lack of funds; that the grants being provided to the City should be for operational as well as capital purposes; that many new business owners lease an office space or single room from which to operate and purchase al larger space or building after funding has been established; that the City should find a way to avoid a bidding process over the amount of grant funds; that thel lease agreement of three years for a business in the area is unfair for older businesses which are established and should have top priority; that help should be made available to the new businesses to help the purpose of helping the business nott to fail; that businesses may be lost as owners seek cheaper leases and agreements elsewhere. Mr. Salem stated that CRA1 funding cannot be provided to businesses in the same way as other grants; that the funding provided byt the CRA cannot be used for employee or Staff wages; that the prospective business owner would need to pay 30 percent of the $40,000 of grant funding which would amount to nearly $12,000. Discussion ensued about the 30 percent funding required up front by the prospective business owners. Mr. Salem stated the goal of the CRA is to revitalize an underprivileged area by supporting businesses in the area; that the businesses will create jobs which will be filled by local hires; that jobs being provided within the community will help with the circulation of the dollar as well as help residents become productive; that the Grant Program proposal is not perfect but is a start to a good project which may help bring tax dollars to the Newtown Community. Mr. Stancel stated that the City can decide to subsidize leases although the decision could result in a loss of moneyf for the City with little chance to regain the funds; that if a commitment is made by a prospective business owner and the City towards the $40,000 grant, the business owner may visit a financial institution and receive the remaining funds as a loan. In response to a question from Member Brody asking how the reimbursement process may occur, Mr. Salem stated that the $12,000 is required no matter the circumstance; that a contractor would be paid to perform the work needed from the allotment of $12,000. Discussion ensued about the Grant Program funding and the options available for the resident to be reimbursed byt the City. Mr. Stancel stated that the three-year lease agreement must be in place before any loan can be provided due to protecting the business from any negative practices from outside sources; that money has been set aside for certain projects within the Newtown community which will begin soon. Inresponse to questions from Member Brody asking if potential business owners can applyi for loans elsewhere to cover the $12,000 required up front and how the approval and appeals process officially works, Mr. Stancel stated that an application would be completed and submitted to Staff who would then submit the application to the NCRAAB for a recommendation; that the CRA would receive the application for final review and decision. Book 3 Page 31862 10/02/17 2:30 P.M. Book 3 Page 31863 10/02/17 2:30 P.M. Mr. Salem stated that a business does not have to be operating for three years but rather have a lease in place for three years, that the thought was to curb outside negative practices by landlords who may want to strip business owners of certain privileges. A motion was made by Member Shaw, seconded by Member Ahearn-Koch, and carried by a 5-0 vote to approve the Newtown Community Redevelopment Agency Advisory Board request for approval of the Newtown Business Assistance Grant Program with a combined total of $590,000 in Tax Increment Finance (TIF) funding available to businesses. In response to a question from Member Brody asking if any legal issues may arise from the proposals, Attorney Fournier stated no. 4. ADJOURN. Chair Freeland Eddie adjourned the Community Redevelopment Agency (CRA) Meeting at 4:07 p.m. à Shelli Freeland Eddie, Chair Attest: 9 9 - N Pamela M. Nadalini, Secretary