MINUTES OF THE SPECIAL SARASOTA COMMUNITY REDEVELOPMENT AGENCY MEETING OF OCTOBER 24, 2011 PRESENT: Chair Suzanne Atwell, Vice Chair Terry Turner, and Members Paul Caragiulo, Willie Shaw, and Shannon Snyder, Executive Director Robert Bartolotta, Attorney Robert Fournier, Deputy Secretary Karen McGowan ABSENT: Secretary Nadalini, attending the Florida Association of City Clerks 2011 Annual Fall Academy The meeting of the Community Redevelopment Agency (CRA) was called to order by Chair Atwell at 2:01 p.m. 1. APPROVAL RE: MINUTES OF THE SPECIAL SARASOTA COMMUNITY REDEVELOPMENT AGENCY MEETING OF SEPTEMBER 19, 2011(AGENDA ITEM CRA-1) Chair Atwell noted CRA consensus to approve the minutes of the Special CRA meeting of September 19, 2011. 2. PRESENTATION AND DISCUSSION RE: UPDATE ON DOWNTOWN COMMUNITY REDEVELOPMENT AGENCY (CRA) TAX INCREMENT FINANCING (TIF) FUNDS (AGENDA ITEM CRA-2) AND PRESENTATION AND DISCUSSION RE: UPDATE ON NEWTOWN COMMUNITY REDEVELOPMENT AGENCY (CRA) TAX INCREMENT FINANCING (TIF) FUNDS (AGENDA ITEM CRA-3) Neighborhood and Development Services (NDS) Director Timothy Litchet, Deputy Finance Director Kelly Strickland, Financial Administration Department, City Engineer Alexandrea DavisShaw, and Chief Planner Steven Stancel, NDS Department, came before the CRA. Ms. Strickland distributed copies of Schedules 1 through 3, CRA Financials, and stated that Schedule 1, CRA Revenue and Expenditure Projections, is a summary of the budget for the Community Redevelopment Area for fiscal years (FYs) 2011/12 through 2016/17; that the revenue valuations include a 1.5 percent increase in the assessed values for the years 2013 through 2016; that the expenditures are divided into the following three groups: Downtown Community Redevelopment Area, Newtown Community Redevelopment Area, and Shared Services between the Downtown and Newtown Community Redevelopment Areas; that the beginning balance for FY 2011/12 is approximately $1.9 million including reappropriations from past FYs; gave presentation concerning Schedule 2, CRA Assigned Funds as of September 30, 2011, which details the reappropriations from past FYs and Schedule 3, CRA Total Potential Spending as Planned as of September 30, 2011. Vice Chair Turner requested that the presentation regarding the new projects be made prior to asking questions. Ms. DavisShaw stated that the focus of the presentation will be solely on the new projects and not the projects approved in the Capital Improvement Program (CIP) and gave a presentation concerning the following new projects: Main Street at U.S. 41: evaluate the replacement of the northbound U.S. 41 left-turn lane into Bayfront Park with a paved and landscaped area for pedestrian refuge when crossing U.S. 41 at a cost of approximately $300,000, A discussion ensued concerning the construction of the proposed roundabout at Main Street and U.S. 41 within six years compared to the roundabouts proposed for the Tenth and 14th Streets at Book 3 Page 31744 10/24/11 2:30 P.M. Book 3 Page 31745 10/24/11 2:30 P.M. U.S. 41 intersections which are also anticipated for completion in six years, the possibility of constructing the roundabouts at the Main, Tenth, and 14th Streets at U.S. 41 intersections at one time, and the possible installation of shade structures at the four corners of the Main Street and Ringling Boulevard at U.S. 41 intersections. Pedestrian Connectivity at First Street at U.S. 41: the Florida Department of Transportation (FDOT) is not supportive of the installation of a crosswalk at a cost of approximately $120,000 at this time as other efforts may reduce vehicular speed in the area, Roundabout at the Main Street and Orange Avenue Intersection: the Request for Proposals (RFP) process to select a consultant has been completed, Staff is gathering the necessary information to prepare and present a contract to the CRA for approval, a consultant will conduct an evaluation of the Main Street and Orange Avenue intersection once hired, and the concern the proposed roundabout will be too close to the parking lot located on Main Street just east of Orange Avenue, In response to a question by Chair Atwell asking the impact of the proposed roundabout at Main Street and Orange Avenue to the landscaping and lighting approved for the intersection, Ms. DavisShaw stated that the hope is to present a contract to the CRA for approval on December 5, 2011; that the cost to construct the proposed roundabout can range from $300,000 to $400,000 based on the size and design of the proposed roundabout, and Reconfiguration of Main Street: the public is still considering options such as widening the sidewalks and different texture for sidewalks and Main Street with an approximate cost of $8 million and the next public meeting is scheduled for November 14, 2011. A discussion ensued concerning the discussion of changes proposed to the sidewalks along Main Street and the potential cost, whether Main Street has brick under the asphalt, and the interest of the Downtown Improvement District (DID) to contribute funds to reconfigure the segment of Main Street located within the DID. Mr. Stancel stated that Staff has held one public meeting to discuss the reconfiguration of Main Street; that the Commission will be receiving invitations to the public meeting scheduled for November 14, 2011. Mr. Stancel stated that providing cost estimates at this time is difficult as no engineering plans have been completed and gave a presentation concerning the following cost estimates for the construction of the State Street Parking Garage: $38.46 per square foot for 377-square-foot parking spaces, $157.50 per square foot for 8,750 square feet of potential shell retail space, and $50 per square foot for 8,750 of potential shell residential space. Mr. Stancel stated that whether to include parking spaces on the ground floor will be determined throughout the vetting process. Executive Director Bartolotta stated that some cost could be offset if the City sells rather than leases the retail space; that no deçisions have been made at this time; that a comprehensive plan amendment will be necessary if a liner building is not constructed on State Street or Lemon Avenue which are primary streets. Mr. Stancel stated that the City could possibly waive the required use of the second floor of the proposed State Street Parking Garage; that a waiver of the use on the ground floor would require a zoning code amendment. Mr. Bartolotta stated that the City has a development agreement with the developer of the Pineapple Square project which requires the construction of a minimum of 300 public parking spaces within three years and six months of the signing of the development agreement. Mr. Stancel stated that the site currently has 139 parking spaces prior to commencing the construction of the State Street Parking Garage; that the City would be investing a significant amount of funds to only provide an additional 161 public parking spaces. Ms. DavisShaw stated that the estimated cost to widen the sidewalks along Main Street from U.S. 41 to Five Points would be approximately $1.5 million including landscaping to match the landscaping installed along Palm Avenue, otherwise the cost can be reduced by approximately $200,000. In response to a question by Mr. Bartolotta asking if landscaping, sidewalks, and pavement are included in the price, Ms. DavisShaw stated that the price includes landscaping and sidewalks but not pavement. A discussion ensued concerning the possible installation of European curbing similar to the Selby Five Points Plaza and Lemon Avenue Plaza and the potential cost for appropriate drainage. Mr. Bartolotta stated that Staff has not received any policy direction at this time; that the intent was to return to the CRA and the DID various options and associated cost; that the reconfiguration of Main Street may require completion over a ten-year period; that Staff anticipates having the necessary details for presentation by November or December 2011. Ms. DavisShaw stated that Staff anticipates presenting the various options including associated costs and the public input received by the CRA by December 2011. Mr. Bartolotta stated that the CRA is recommended to set aside the necessary funds if improving Main Street is a priority; that any improvements would require reprioritization of projects in the Downtown Community Redevelopment Area. A discussion ensued concerning the portion of the design for Main Street which would be low-impact design and the reason the installation of the proposed pedestrian sleeves on Fruitville Road should be delayed. In response to a question by Vice Chair Turner asking the improvements the City will obtain on Fruitville Road for $400,000, Project Manager William Nichols, Public Works Department, came before the CRA and stated that the existing vegetation in every island will be removed, irrigated, and replanted based on the landscape design; that the existing asphalt will be removed, and the base course, friction course, and final striping will be done; that the bulldozers will be brought back to allow for an adequate turn radius and landscaping. A discussion ensued concerning the addition of medians on Fruitville Road between U.S. 41 and U.S. 301 and the possible removal of some improvements upon the installation of pedestrian sleeves. In response to a question by Vice Chair Turner asking the number of pedestrian sleeves proposed for installation on Fruitville Road, Ms. DavisShaw stated that one pedestrian sleeve is proposed for installation at Fruitville Road at Osprey Avenue which eliminates the eastbound to northbound left-turn lane onto Osprey Avenue; that a second pedestrian sleeve is proposed for installation at Fruitville Road and Cocoanut Avenue which eliminates the eastbound to northbound turn lane onto Cocoanut Avenue. Mr. Bartolotta stated that Staff has discussed moving the pedestrian sleeve from Fruitville Road and Cocoanut Avenue to Central Avenue as businesses are located along Central Avenue. Staff answered CRA clarifying questions to the budget regarding the Downtown Redevelopment Plan, strategic parking facilities, the Ringling Square and Sarasota-Herald Tribune Public Infrastructure Projects, and the inter-fund transfers for services provided by the General Fund. The following people spoke: Ernest Ritz ndicating plans for the streetscape along Main Street began during the 2010 Semcon Conference, a public meeting was held October 10, 2011, to obtain public input, the DID will discuss the options proposed by the public at the November 1, 2011, DID meeting, a second public meeting which will include displays is scheduled for November 14, 2011, cost estimates will be provided once final the Book 3 Page 31746 10/24/11 2:30 P.M. Book 3 Page 31747 10/24/11 2:30 P.M. selections are approved, and a major step will be to increase security, businesses, and residents Downtown. Valerie Buchand indicating the City does not abide by guidelines and criteria set for the use of Tax Increment Financing (TIF) funds and continues to give funds to organizations which do not meet the required criteria, organizations which received TIF funds are not using the funds as agreed which is a significant concern, she would like to see whether all the organizations which have received TIF dollars are using the funds as agreed, and she would like to have a better understanding of the City and CRA budgets, and asking to see the proposals for the use of TIF funds to pay for services provided by the General Fund which were submitted to the CRA for approval. In response to a question by Vice Chair Turner asking the projects which can be completed by the 2012 tourist season, Mr. Ritz stated that the DID will have answers for the CRA by November 2011; that the DID anticipates completing the DID's portion of the reconfiguration of Main Street within two to three years rather than the ten years proposed by the City. Vice Chair Turner stated that his belief is transients and street people are a detriment to the economic development of the Downtown; gave a report concerning his discussion with Brian Pope, General Manager, the Salvation Army, regarding the implementation of an outreach program which has been very successful in the City of Daytona Beach; and requested that $50,000 be allocated annually for two years for the implementation of a pilot outreach program through the Salvation Army to help transients and street people get off the street. Member Caragiulo stated he has spoken with the City Manager of the City of Daytona Beach; that a significant amount of literature illustrating the success of the outreach program is available; that the implementation of a pilot outreach program through the Salvation Army is supported. Member Snyder stated that the Salvation Army should maintain documentation of the number of times a person has been offered to participate in the outreach program if the City funds an outreach program or services to assist transients and street people. Mr. Bartolotta stated that a report regarding the outreach program was given to the Police Complaints Committee (PCC); that the outreach program is well managed; that the Salvation Army will choose who will participate in the outreach program; that Staff is considering implementing one or two teams but is waiting to obtain liability information. Public Works Director Douglas Jeffcoat, came before the CRA and stated that the conversation was regarding the implementation of two street teams comprised of five members each team; that the City will decide manner and areas in which the street teams will be utilized; that Staff is in the process of obtaining the necessary information for possible implementation. A discussion ensued concerning the possibility the cost may exceed the annual allocation of $50,000 as the population of transients and street people fluctuates based on the time of year. Mr. Jeffcoat stated that Staff was advised the estimated cost for each street team is $40,000 for six months. Member Snyder stated that the implementation of two street teams at an annual cost of $80,000 for each street team is supported. Member Caragiulo stated that the funds should be set aside for the pilot outreach program to assure the TIF funds are not utilized for another project. In response to a question by Member Shaw asking if the outreach program will provide beds at the Salvation Army, Vice Chair Turner stated that a bed will be provided at the Salvation Army as long as a person continues to participate in the outreach program. Chair Atwell noted Commission agreement to allocate a total of $160,000 in TIF funds for two years to implement a pilot outreach program to form two street teams comprised of five members each which will be administered through the Salvation Army. The CRA recessed at 3:17 p.m. and reconvened at 3:26 p.m. Deputy Finance Director Kelly Strickland, Financial Administration Department, NDS Coordinator Erica Reed-Agard, Economic Development Coordinator Dru Jones, Chief Planner Steve Stancel, NDS Department, came before the CRA. Mr. Stancel stated that a discussion regarding the Community Development and Economic Development and Business Enhancement Grant Programs is desired; that Staff is seeking direction from the CRA regarding whether the CRA wishes to move forward with future rounds of grants or proceed in a different direction. Mr. Bartolotta stated for clarification that Staff would like to determine whether the CRA wishes to continue issuing grants to the Downtown and Newtown Community Redevelopment Areas in 2012. Mr. Stancel gave an overview of the following five areas in which TIF funds can be obtained: community development, economic development and business enhancements, public/private partnership, development on CRAICity-owned property, and public program/intfrastructure improvements; and stated that some companies are in the process of drafting proposals; therefore, CRA direction is requested. Member Shaw stated that moving forward with the Community Development and the Economic Development and Business Enhancement Grant Programs is supported. Member Snyder stated that the awarding of TIF funds for the Downtown Community Redevelopment Area is coming to an end; that explaining the issuance of grants for the use of TIF funds in the Downtown Community Redevelopment Area is difficult; that the Downtown has become successful; that the Community Development and Economic Development and Business Enhancement Grant Programs should be discontinued in the Downtown Community Redevelopment Area only; that continuing the Community Development and Economic Development and Business Enhancement Grant Programs in the Newtown Community Redevelopment Area is supported. Vice Chair Turner stated that discontinuing the Community Development and Economic Development and Business Enhancement Grant Programs in the Downtown Community Redevelopment Area is generally agreeable; and asked the manner in which the funds for the pilot outreach program to be administered through the Salvation Army would be approved. Mr. Stancel stated that the funds were approved under the public programsintrastructure improvements program which is essentially approved as an amendment to the budget. Vice Chair Turner stated that the discontinuation of the Community Development and Economic Development and Business Enhancement Grant Programs in the Downtown Community Redevelopment Area is supported; that the inclusion of accountability criteria in the Community Development and Economic Development and Business Enhancement Grant Programs in the Newtown Community Redevelopment Area will improve the programs; that the grant programs should be monitored closely. A motion was made by Vice Chair Turner, seconded by Member Shaw, and carried by a 5-0 vote to recommend the Commission approve the elimination of the Community Development Grant Program and the Economic Development and Business Enhancement Grant Program in the Downtown Community Redevelopment Area only and continue the grant programs in the Newtown Community Redevelopment Book 3 Page 31748 10/24/11 2:30 P.M. Book 3 Page 31749 10/24/11 2:30 P.M. Area for another one to two years with a monitoring of the progress of the grant programs in the Newtown Community Redevelopment Area. Ms. Strickland gave a presentation concerning Schedule 1, CRA Revenue and Expenditure Projections, and the proposed budget for the Newtown Community Redevelopment Area; and stated that the TIF funds were allocated as follows: 40 percent was allocated to economic development, 35 percent was allocated to community health and welfare, and 25 percent was allocated to an administralivelplaning study; that the Inter-fund transfer for services provided by the General Fund reflects the use of TIF funds to pay $455,613 of the $483,097 cost of the Newtown Redevelopment Office. Staff answered clarifying questions concerning the proposed budget for the Newtown Community Redevelopment Area regarding the ncreased administrative costs and economic development. Mr. Bartolotta that some large projects to which funds have not yet been allocated such as the cleanup of the Marian Anderson Place Site will be forthcoming in the near future. Ms. Reed-Agard and Ms. Jones gave a computer-generated presentation conçerning the Newtown Community Redevelopment Area including an overview concerning the Newtown 2002 Redevelopment Plan, eight goals to overcome major community challenges, budget allocations, objectives of economic development and proposed projects, community health, safety, and welfare, and adminstrationpanning. In response to a question by Member Shaw asking the impact on marketing of the Marian Anderson Place Site of limited access, Mr. Bartolotta stated that the City made an offer on an adjacent site which was rejected by the property owner who was asking twice as much; that once a potential developer is located, the developer may wish to acquire the property as the Marian Anderson Place Site will essentially need an entrance road; that the City is not aware of any current distress sales at this time. NDS Director Timothy Litchet came before the CRA and stated that Staff is monitoring whether any distress sales arise. Vice Chair Turner stated that the use TIF funds for the Robert L. Taylor Community Complex is supported; that sales and employment data for 12 months prior and subsequent to the storefront improvement using TIF funds should be provided for review; that performance measures should be established for everyone seeking the grant. A discussion ensued concerning the assumption of available TIF funds in FY 2016/17 for the Newtown Community Redevelopment Area. The following people spoke: David Shiner supporting the construction of the proposed State Street Parking Garage and indicating he has invested time and money into an art gallery located on State Street. Valerie Buchand indicating beautifying the outside of a building does not necessarily result in an increase of income, a developer will not consider developing the Marian Anderson Place Site as long as the hourly rate a company must pay its employees is in place, more than 100 people have completed the 12-week Chief Executive Officer course, however, the City does not have an incubator to help graduates establish a business, many graduates who currently have a business already had the business prior to completing the 12-week CEO course, asking the CRA consider allocating the funds budgeted for Community Development and Economic Development and Business Enhancement Grant Programs for the Downtown Community Redevelopment Area into the Newtown Community Redevelopment Area to assist with economic development. Paul Thorpe opposing the discontinuation of the Community Development and Economic Development and Business Enhancement Grant Programs as assistance for economic development Downtown is still necessary due to the current economy. In response to a question by Member Caragiulo asking the time the City has to provide the 300 public parking spaces, Mr. Stancel stated that the City has four years from February 2010 to provide 300 public spaces. A discussion ensued concerning the design process for the proposed State Street Parking Garage. Mr. Bartolotta stated that the cost of construction is currently relatively low as the demand for construction is down; that Staff would like to pre-sell any retail or residential space prior to commencing construction of the proposed State Street Parking Garage. Mr. Stancel stated that a delay between Phases 1 and 2 of the construction of the proposed State Street Parking lot may occur. Vice Chair Turner stated that any additional funds available can be utilized for other projects if the size of the proposed State Street Parking Garage is reduced, resulting in a savings in the construction cost. Mr. Bartolotta stated that the cost of construction will be based on the size of the proposed State Street Parking Garage. Vice Chair Turner stated that the hope was for consideration of the potential expenditure of funds by the DID and the CRA would be further along; that the CRA must decide the expenditure of funds in the Downtown Community Redevelopment Area in a short period time; that the hope is the CRA will establish the expenditure of TIF funds in the Downtown Community Redevelopment Area within the next three or four months. Member Snyder stated that the DID should have all necessary information by the early to mid January 2012 to make a recommendation to the CRA; therefore, a CRA meeting should be scheduled for mid to late January 2012. A discussion ensued concerning the possibility of issuing Invitations to Negotiate SO developers can present potential designs for projects and the CRA can obtain the feasibility perspective from developers. 3. ADJOURN Chair Atwella adjourned the meeting at 4:38 p.m. a 1 N SUZANNE ATWELL, CHAIR -7 AP B * KAREN MCGOWAN, DEPUTY SÉCRETARY Book 3 Page 31750 10/24/11 2:30 P.M.