MINUTES OF THE SPECIAL SARASOTA COMMUNITY REDEVELOPMENT AGENCY MEETING OF OCTOBER 20, 2008 PRESENT: Chair Lou Ann R. Palmer, presiding, Vice Chair Ken Shelin, Members Fredd "Glossie" Atkins, Richard Clapp, and Kelly M. Kirschner, 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 3:06 p.m. 1. APPROVAL RE: MINUTES OF THE SPECIAL COMMUNITY REDEVELOPMENT AGENCY MEETING OF JUNE 2, 2008 (AGENDA ITEM CRA-1) Chair Palmer noted CRA consensus to approve the minutes of the Special Community Redevelopment Agency meeting of June 2, 2008. 2. APPROVAL RE: REQUEST FROM THE NEW YORK TIMES (NYT) MANAGEMENT SERVICES FOR RELEASE FROM RESTRICTION CONTAINED IN ARTICLE 13 OF THE AGREEMENT FOR REDEVELOPMENT OF PROPERTY, SARASOTA HERALD-TRIBUNE PROJECT, BETWEEN NYT MANAGEMENT SERVICES AND THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SARASOTA (AGENDA ITEM CRA-2) In response to a question by Chair Palmer asking if Staff has informed the CRA Advisory Board of the request of the New York Times (NYT) Management Services for any suggestions or advice, Attorney Fournier stated no; that the Agreement indicates the matter would go before the CRA; that a mechanism to send the matter to the CRA Advisory Board does not exist unless the CRA decides to do SO. Mr. Fournier gave a report concerning the history of the approval of the Redevelopment Agreement for the construction of a building which is currently the Herald-Tribune Headquarters located at 1741 Main Street and stated that Section 13-01 of the Redevelopment Agreement restricts the use of the building to an office building and for office use occupied by the Herald-Tribune or an affiliated entity; that the Redevelopment Agreement requires CRA approval to allow the leasing of office space to an entity not affiliated with the Herald-Tribune; that the CRA is requested to grant permission for NYT Management Services to lease 15,000 square feet of office space as a result of the decrease in the number of employees during the difficult economic times. Chair Palmer stated that the City must ensure an infringement on any portion of the agreement which includes provisions to address the availability of civic space for public events and public parking does not occur. Mr. Fournier read the provisions concerning parking requirements and civic space including a high-quality meeting facility available to the public and a public outdoor plaza for live broadcast of events among other uses into the record which were referred to by the Chair and stated that the release does not appear to have any impact. In response to a question by Member Atkins asking if the CRA can view any documentation reflecting the use of the facilities by the public, Mr. Fournier stated that an answer is not known; that the question should be directed to the Applicant. In response to a question by Vice Chair Shelin asking if the City subsidy provided to the Applicant can be recovered if the Redevelopment Agreement is modified, Mr. Fournier stated that the intent was to recover the subsidy through the collection of Tax Increment Financing (TIF) funds; that the suggested release form submitted to the CRA can be negotiated if desired. BOOK2 Page 1670 10/20/08 2:30P.M. BOOK2 Page 1671 10/20/08 2:30 P.M. Brenda Patten, Attorney, Law Firm of Kirk-Pinkerton, representing NYT Management Services and the Sarasota Herald-Tribune, and Rob Sprayberry, Financial Services Manager, Herald-Tribune, came before the CRA. Ms. Patten stated that request was not presented to the CRA Advisory Board as no changes are being proposed to Development Agreement or the Site Plan; that the request is to allow other entities not affiliated with the Herald-Tribune to lease up to 15,000 square feet of office space; that the Redevelopment Agreement provides a process to make any requests to the CRA; that the Herald-Tribune has fully complied with all requirements included in the Redevelopment Agreement; that parking is being used by the public after hours during the week and all day Saturday and Sunday; that the civic space is used frequently by the public; that the plan is to allow other entities to rent office space to have 72,000 square feet of office space occupied if the. release from Article 13 of the Redevelopment Agreement is approved. Mr. Sprayberry stated that the meeting facility is used primarily by local organizations. Ms. Patten stated that Article 13 of the Redevelopment Agreement allows the CRA to make a decision without any input by the CRA Advisory Board. In response to a question by Vice Chair Shelin concerning making payments to the City from the new leases rather than NYT Management Services to recover the City's subsidy, Ms. Patten stated that the concept was to bring a facility to the Downtown area which could attract more people and provide public parking and a meeting facility available to the public. In response to a question by Member Clapp asking the number of employees currently working in the new building and at the time the building first opened, Mr. Sprayberry stated that 262 employees are currently working in the new building and 357 employees moved into the building when opened. In response to a question by Member Clapp asking the number of employees anticipated to occupy the 15,000 square feet if the request is approved, Mr. Sprayberry stated that the Herald-Tribune is hoping to have approximately 60 to 70 additional employees if the request is approved by the CRA. The following person spoke: Robert Hillier, representing Center Pointe property owners, indicating office space Downtown still remains unoccupied in many office buildings, conditions included in the Redevelopment Agreement require the sole occupancy by the NYT Management Services or an affiliate, NYT Management Services will now be competing with other office buildings which are not subsidized with tax dollars, and requesting the release of the restriction included in Article 13 of the Redevelopment Agreement be denied. Chair Palmer passed the gavel to Vice Chair Shelin. A motion was made by Chair Palmer, seconded by Member Clapp, and carried by a 5-0 vote to refer the request from the New York Times (NYT) Management for release from the restriction in Article 13 of the Agreement for Redevelopment of Property, Sarasota Herald-Tribune Project, between NYT Management Services and the City of Sarasota to the Community Redevelopment Agency Advisory Board. Vice Chair Shelin returned the gavel to Chair Palmer. 3. ADJOURN Chair Palmer adjourned the meeting at 3:36 p.m. KOu ANN R. PALMER, CHAIR ATTEST: 13 d Ey Rubunson BILLY E. ROBINSON, SECRETARY BOOK2 Page 1672 10/20/08 2:30 P.M.