MINUTES OF THE SPECIAL SARASOTA COMMUNITY REDEVELOPMENT AGENCY MEETING OF MARCH 23, 2007 PRESENT: Chair Fredd "Glossie" Atkins, presiding, Vice Chair Danny Bilyeu, Members Lou Ann R. Palmer, Mary Anne Servian, and Ken Shelin, Attorney Robert M. Fournier, Secretary Billy E. Robinson, and Interim Executive Director V. Peter Schneider ABSENT: None The meeting of the Community Redevelopment Agency (CRA) was called to order by Chair Atkins at 1:00 p.m. INVOCATION/PLEDGE OF ALLEGIANCE: Secretary Robinson. 1. PRESENTATION RE: REQUEST FOR PROPOSAL NO. 06-61T REDEVELOPMENT OF THE CITY-OWNED LAND FRONTING PALM AVENUE =- INTRODUCTION (AGENDA ITEM CRA-1 AND 1A) Purchasing Manager Mary Tucker, General Services Department, and Chief Planner John Burg, Planning and Redevelopment Department, came before the CRA. Purchasing Manager Tucker stated that the CRA Advisory Board ranked the proposals for redevelopment of the City-owned property on Palm Avenue in the following order: 1) Palm Plaza by Benderson Development Company, Inc., Burton-Katzman Development Company, Inc., and Mark Kauffman, 2) The Palm of Sarasota by Florida Main Street, LLC, 3) Royal Palm Court by Roskamp and Patterson Management Company, and 4) The Palm Avenue Development by The John Buck Company and the Leiter Group, LLC. Purchasing Manager Tucker continued that the objectives of the meeting are as follows: Listen to Citizens' Input, Listen to five minutes of final remarks of the proposers, Conduct a question and answer session after the presentation of each proposer, Evaluate the proposals in accordance with the criteria indicated in the Request for Proposal, Discuss the evaluation criteria prior to the completion of the score sheets, Verify the addition of the points by the City Auditor and Clerk and the Purchasing Manager, Convert the points into first, second, third, and fourth places for each CRA member, which will be placed on a flip chart to finalize the process, and Announce the final ranking of the proposals which will be followed by a motion to approve the final ranking and authorize Staff to proceed with negotiating with the proposer who ranked first place. Chief Planner Burg stated that the following three clarifications must be made concerning issues raised regarding the proposals: Roskamp and Patterson Management Company indicated at the February 13, 2007, Special Commission meeting that they have a secondary position to include the purchase of the Coco Palm Gallery; however, the Purchase Agreement between Florida Main Street, LLC, and the property owners of the Coco Palm Gallery precludes such a position, BOOK2 Page 1646 03/23/07 1:00 P.M. BOOK 2 Page 1647 03/23/07 1:00 P.M. Florida Main Street, LLC, indicated the owners of the attainable housing units will have access to all amenities as the written proposal indicates the budget for the attainable housing units will be separate from the market rate units and additional amenities for which the market rate units pay will be available to the attainable housing units for an additional cost, and Benderson Development Company, Inc., Burton-Katzman Development Company, and Mark Kauffman submitted a proposal which raised questions regarding the adequacy of the parking spaces to meet the requirements of the Zoning Code (2002 Edition) and a determination was reached by the Purchasing Manager indicating the proposal had identified sufficient parking spaces in the drawing which are not included in the language of the proposal. 2. PARAMETERS FOR NEGOTIATION AND OTHER ISSUES (AGENDA ITEM CRA-1B) Attorney Fournier gave a presentation concerning the importance of following the evaluation criteria included in the Request for Proposal (RFP) as failure to follow or apply the evaluation criteria can result in a protest followed by a lawsuit to recover the costs for preparation and submittal of the proposal. Attorney Fournier stated that one of the seven criteria, minority participation, has been scored by Staff; that the CRA must score the remaining six criteria; that the CRA can negotiate some aspects of the proposals with the successful proposer if the evaluation criteria is applied correctly or can reject all the proposals under the following circumstances: Features of all the proposals are identified as non-responsive to the RFP, or Evaluation criteria deemed as relevant but not included in the RFP can be added or modified. 3. CITIZENS' INPUT (AGENDA ITEM CRA-1C) The following people spoke: Brett Hendricks indicating decisions should be based on the criteria included in the RFP and the John Buck Company and the Leiter Group, LLC, has the ability to complete the project. Julie Rohr-McHugh, representing the Golden Apple Dinner Theatre and the Benderson Development Company, supporting the proposal submitted by Benderson Development Company, Inc., Burton- Katzman Development Company, and Mark Kauffman as the project will retain the Golden Apple Dinner Theatre Downtown. Wayne Barcomb, representing the Golden Apple Dinner Theatre, indicating the Golden Apple Dinner Theatre should not be relocated as the establishment is a wonderful experience. Eva Slane supporting Benderson Development Company, Inc., Burton-Katzman Development Company, and Mark Kauffman as the proposal submitted has adhered to the requirements of the RFP and the proposed project is uniquely designed. Nik Degler, representing the Young Professionals Group, indicating affordable housing should be considered in all proposals rather than considering exclusionary housing for persons 55+ years of age. Bob Trisolini, representing the Golden Apple Dinner Theatre, indicating the CRA should strongly consider the Benderson Development Company, Inc., Burton-Katzman Development Company, and Mark Kauffman proposal. Ray Peper, the Golden Apple Dinner Theatre, supporting the Palm Plaza project and indicating the Golden Apple Dinner Theatre should remain Downtown. John Harms supporting the John Buck Company and Leiter Group, LLC, proposal as the project has low density, a significant amount of public parking and retail, and provides immediate revenue. Mike Jacobson, representing Habitat for Humanity Sarasota, Inc., supporting the Roskamp and Patterson Management Company proposal and indicating $3.5 million has been proffered to construct affordable housing at a different location which is near the Downtown area. John Engel, representing the Bay Plaza, indicating parking is a great need in the City and supporting the John Buck Company and Leiter Group, LLC, proposal. Andrew Foley, representing Palm Avenue, supporting the construction of attainable housing as part of the project rather than providing an in-lieu-of option to construct attainable housing at a different location, indicating the demographics of the Downtown residents should be broadened and the parking entrance should not be on Cocoanut Avenue, and opposing a 55+ community on public property. Zeb Portanova indicating affordable housing should be constructed near Downtown and not in Downtown as land is more expensive in the Downtown area. Genevieve Hall indicating an exclusionary project should not be selected. Terry Osborn indicating having retail on the ground floor is important to retain the retail flow of Palm Avenue and recommending the CRA select a successful design which is compatible with Palm Avenue. Christopher Charles, representing Florida Reprographics, supporting the proposal submitted by Florida Main Street, LLC. George Allen, representing L and A Metals Group, Inc., supporting the Palm of Sarasota project which will utilize minority-owned businesses during the construction phase of the project. Jo Anne Allen, representing L and A Metals Group, Inc., supporting the Palm of Sarasota project. Garry Breul, representing the Golden Apple Dinner Theatre employees, indicating the Golden Apple Dinner Theatre should be retained Downtown as the establishment attracts people from different locations. Peter Shaw supporting the Florida Main Street, LLC, project and indicating Benderson Development Company, Inc., Burton-Katzman Development Company, and Mark Kauffman have failed to meet the criteria in the RFP and should not be considered. Donna Des Isles, representing the Golden Apple Dinner Theatre, indicating the Golden Apple Dinner Theatre should remain Downtown as the establishment attracts many people and the CRA should consider the City has an international reputation for having good design when making a decision. Lenore Suttle indicating employees of Downtown businesses expressed they cannot find a place to live Downtown. J.P. Knaggs disagreeing with all proposals submitted as a City-owned parking structure should be constructed due to the great need for parking in the Downtown and indicating Florida Main Street, LLC, has the best design as the project will be pedestrian friendly. BOOK 2 Page 1648 03/23/07 1:00 P.M. BOOK2 Page 1649 03/23/07 1:00 P.M. David Mills, representing Benderson Development Company, Inc., supporting the Benderson Development Company, Inc., Burton-Katzman Development Company, and Mark Kauffman proposal as no public funding is requested and the project ties the Downtown together. Diana Hamilton supporting the proposal submitted by The John Buck Company and Leiter Group, LLC, as the scale and character result in a beautiful and modern piece of architecture. Keren Shani-Lifrak supporting the Palm of Sarasota project which is considering all the arts and indicating affordable housing is very scarce in the City. Dick Sheldon requesting the construction of a parking garage on Palm Avenue and indicating The John Buck Company and Leiter Group, LLC, are willing to construct a parking garage first and minimize the disruption to merchants during construction. Jane Baldwin, representing the Golden Apple Dinner Theatre, indicating the Golden Apple Dinner Theatre should remain Downtown. Giovanni Migiliorini, representing Cafe Epicure, indicating business has been lost due to the lack of parking and supporting the Palm of Sarasota project. Molly DeMeulenaese concerning embracing young people to live Downtown and supporting the Palm of Sarasota project as the Golden Apple Dinner Theatre remains Downtown. Alan Kurland indicating parking is greatly needed Downtown and supporting the proposal submitted by the Roskamp and Patterson Management Company as senior housing has a place Downtown. Steven Carlin supporting the proposal submitted by Florida Main Street, LLC, and indicating the City should embrace a practical and dynamic development. The CRA recessed at 2:33 p.m. and reconvened at 2:44 p.m. 4. SUMMARY AND CLARIFICATION BY FOUR SHORT-LISTED TEAMS (AGENDA ITEM CRA-1D) Chair Atkins stated that following a discussion with the Attorney and the Secretary, the CRA has agreed to provide The John Buck Company and the Leiter Group, LLC, The Roskamp and Patterson Management Company, and Florida Main Street, LLC, 7 minutes to speak since individuals who work for the Benderson Development Company, Inc., Burton-Katzman Development Company, Inc., and Mark Kauffman, signed up to speak during Citizens' Input; that representatives of the Benderson Development Company, Inc., Burton-Katzman Development Company, Inc., and Mark Kauffman which had individuals speak during Citizens' Input will have 5 minutes to speak. 1) THE JOHN BUCK COMPANY AND THE LEITER GROUP, LLC (AGENDA ITEM CRA-1D-1) John Buck III, Vice President, The John Buck Company, Steven Niles, AIA, Partner and Executive Vice President, Goettsch Partners, and Matthew Leiter, Vice President, the Leiter Group, LLC, came before the CRA. Mr. Buck gave a presentation concerning the design and amenities of the proposed project; and stated that a proffer has been submitted to use minority-owned businesses for the project; that the project will result in minimal interruption to pedestrians and vehicular traffic. Mr. Leiter gave a presentation concerning parking and the financing of the project; and stated that Staff ranked the project the highest while the CRA Advisory Board ranked the project the lowest. Mr. Niles stated that the CRA should follow the evaluation criteria and be guided by fundamental factors; that projects relying on advance sales are high risk. Following the Developer's summary, the CRA entered into a session of questions and answers. 2) ROSKAMP AND PATTERSON MANAGEMENT COMPANY (AGENDA ITEM CRA-1D-2) Robert Roskamp, Roskamp Management Company, LLC, Steven Roskamp, Partner, and Greg Patterson, Partner, Roskamp and Patterson Management Company, William Thorning Little, Architect, and Jeff Russell, Attorney, Freedman Consulting Group, came before the CRA. Attorney Russell stated that the Request for Proposal (RFP) does not prohibit the construction of a senior living project nor does the RFP require the project be a structure for young professionals; that although the project does not meet the exact requirement for housing as required by the RFP, the developer will provide $3.5 million in cash to construct affordable housing units at a different location; that the project does not require any assistance from the City; that the parking garage will be transferred to the City upon completion of construction; that the construction impact to surrounding neighbors will be minimized as the project allows the use of other areas for the construction staging area. Mr. R. Roskamp stated that an established need of the citizens is being addressed; that the residents and staff of the development will be present throughout the year and not on a seasonal basis. The CRA had no questions for the Developer. 3) BENDERSON DEVELOPMENT COMPANY, INC., BURION-KATZMAN DEVELOPMENT COMPANY, INC., AND MARK S. KAUFFMAN (AGENDA ITEM CRA-1D-3) Larry Fineberg, Vice President, Benderson Development Company, Inc., Laurence Goss, Principal, Burton-Katzman Development Company, Javier Suarez, Senior Vice President, The ADP Group, Inc., and Mark Kauffman, M.D., came before the CRA. Mr. Fineberg gave a presentation concerning the benefits and financing of the project; and stated that the Sarasota Community Housing Trust expressed support for the construction of the proposed project; that providing ground-floor parking takes away from the mixed-use area and was sacrificed to retain the Golden Apple Dinner Theatre; that the design can be adjusted; that the City is being asked to contribute $300,000 towards the cost for the construction of a proposed roundabout and the developer will pay any amount in excess of the $300,000, if needed. Mr. Suarez gave a presentation concerning the design of the project and indicating the project meets the requirements of the Zoning Code (2002 Edition); and stated that the project is designed to connect to the Downtown area; that the project proposes the construction of parking as required by the Zoning Code (2002 Edition). Mr. Kauffman gave the closing comments; and stated that 60 percent of the parking is on a level surface and 40 percent of the parking will be on the ramps to gain efficiencies. Following the Developers summary, the CRA entered into a session of questions and answers. BOOK2 Page 1650 03/23/07 1:00 P.M. BOOK2 Page 1651 03/23/07 1:00 P.M. 4) FLORIDA MAIN STREET, LLC (AGENDA ITEM CRA-1D-4) Jonathan Parks, Jonathan Parks Architecture, Chris Brown, Partner, Florida Main Street, LLC, and Karin Murphy, Senior Project Manager, Wilson-Miller, came before the CRA. Ms. Murphy gave a presentation concerning the design of the project, financing, cost of land, and attainable housing element of the project; and stated that the project includes items which are desired by the City and allocates funds toward projects for the Community Redevelopment Area. Mr. Brown gave a presentation concerning the location of parking spaces; and stated that the project includes attainable housing; that the project is a vision based on the arts as the project is designed for artists to live, work, and perform at the same location. Following the Developer's summary, the CRA entered into a session of questions and answers. 5. DISCUSSION (AGENDA ITEM CRA-1E) Purchasing Manager Mary Tucker, General Services Department, came before the CRA and stated that the evaluation criteria is as follows: Evaluation Criteria 1 has a total of 20 possible points for the demonstrated ability of the Respondent to complete the project which includes experience, financial strength, and the ability to complete the project, Evaluation Criteria 2 has a total of 20 possible points for the extent to which the Respondent's proposal meets or exceeds the Public Parking and Parking Management related objectives as outlined in the Request for Proposal (RFP) as Objectives 1 and 2, Evaluation Criteria 3 has a total of 15 possible points for the extent to which the Respondent's proposal meets the Architecture related objective outlined in the RFP as Objective 4, Evaluation Criteria 4 has a total of 10 possible points for the extent to which the Respondent's proposal meets or exceeds the Attainable Housing related objective outlined in the RFP as Objective 5, Evaluation Criteria 5 has a total of 15 possible points for the extent to which the Respondent's proposal meets the Financial Terms related objective outlined in the RFP as Objective 6, and Evaluation Criteria 6 has a total of 15 possible points for the extent to which the Respondent's proposal meets or exceeds the Construction Impacts related objective outlined in the RFP as Objective 8. The CRA recessed at 3:44 p.m. and reconvened at 3:55 p.m. 6. COMPLETION AND COMPILATION OF EVALUATION FORMS (AGENDA ITEM CRA-1F) Chair Atkins stated that the compilation of the evaluation forms has been completed. 7. ACTION RE: RANKING AND AUTHORIZATION TO PROCEED WITH NEGOTIATIONS (AGENDA ITEM CRA-1G) Secretary Robinson announced results will be read in the order of ranking by each CRA Member and read the following ranking: Chair Atkins ranked the projects in the following order: 1. The John Buck Company and the Leiter Group, LLC, 2. Florida Main Street, LLC, 3. Roskamp and Patterson Management Company, and 4. Benderson Development Company, Inc., Burton-Katzman Development Company, Inc., and Mark Kauffman Vice Chair Bilyeu ranked the projects in the following order: 1. The John Buck Company and the Leiter Group, LLC, 2. Roskamp and Patterson Management Company, 3. Benderson Development Company, Inc., Burton-Katzman Development Company, Inc., and Mark Kauffman, and 4. Florida Main Street, LLC. Member Palmer ranked the projects in the following order: 1. The John Buck Company and the Leiter Group, LLC, 2. Roskamp and Patterson Management Company, 3. Benderson Development Company, Inc., Burton-Katzman Development Company, Inc., and Mark Kauffman, and 4. Florida Main Street, LLC. Member Servian ranked the projects in the following order: 1. Florida Main Street, LLC, 2. Benderson Development Company, Inc., Burton-katzman Development Company, Inc., and Mark Kauffman, 3. The John Buck Company and the Leiter Group, LLC, and 4. Roskamp and Patterson Management Company. Member Shelin ranked the projects in the following order: 1. Benderson Development Company, Inc., Burton-Katzman Development Company, Inc., and Mark Kauffman, 2. The John Buck Company and the Leiter Group, LLC, 3. Roskamp and Patterson Management Company, and 4. Florida Main Street, LLC. Chief Planner Burg stated that three points will be assigned for first place, two points for second place, one point for third place, and no points for fourth place; that the points will be totaled to provide a final ranking of the proposals. Following the totaling of the points, Purchasing Manager Tucker announced The John Buck Company and Leiter Group, LLC, came in first place, Benderson Development Company, Inc., Burton-Katzman Development Company Inc., and Mark Kauffman, came in second place, Roskamp and Patterson Management Company came in third place, and Florida Main Street LLC, came in fourth place. A motion was made by Member Shelin, seconded by Vice Chair Bilyeu, and carried by a 5-0 vote to approve the final ranking and authorize Staff to begin negotiations with the Developer who ranked in first place. BOOK2 Page 1652 03/23/07 1:00 P.M. BOOK2 Page 1653 03/23/07 1:00 P.M. 8. APPROVAL RE: PALM AVENUE PROJECT, ERA FINANCIAL ANALYSIS SERVICES (AGENDA ITEM CRA-2) Chief Planner John Burg came before the CRA and stated that the proposed contract authorizes the hiring of Economic Research Associates (ERA) Financial Analysis Services to assist the City in negotiations, if any financial negotiations are needed; that the amount requested is contingent upon the need to hire the ERA to assist in financial negotiations. A motion was made by Member Servian, seconded by Member Shelin, and carried by a 5-0 vote to authorize the CRA enter into an Agreement with Economic Research Associates Financial Analysis Services in an amount not to exceed $20,000. 9. OTHER MATTERS/ADMINISTRATIVE OFFICERS A. Interim Executive Director Schneider stated that the Joint meeting of March 23, 2007, between Staff of the County and the municipalities commenced with the County's request to remove funding for some of the County's capital projects from the total amount of Local Option Sales Tax (L.O.S.T.) extension, also called the penny sales tax available for distribution to the municipalities; that following discussion, the determination was for the municipalities to review their list of projects to determine if any of the projects are considered regional in nature; that the Staff of the County and the municipalities will meet again during the week of April 1, 2007; therefore, the CRA is requested to postpone the Joint Workshop of the Commission and the Surtax Advisory Board to review the list of projects for the Surtax Extension scheduled for March 26, 2007, as the list of projects may change. Interim Executive Director Schneider continued that a Special Commission meeting should be scheduled for 3:00 p.m., March 26, 2007, to approve an amendment to the Agreement between the City and the Cincinnati Reds which changes the pledge of revenue source and extends the funding period from 20 years to 30 years. Chair Atkins noted CRA consensus to postpone the Joint Commission Workshop scheduled for March 26, 2007, to review the list of projects for the Surtax Extension and schedule a Special Commission meeting for 3:00 p.m., March 26, 2007, to approve an amendment to the Agreement between the City of Sarasota and the Cincinnati Reds. 10. ADJOURN (AGENDA ITEM CRA-3) Chair Atkins adjourned the meeting at 4:05 p.m. FREDD "GLOSSIE" ATKINS, CHAIR ATTEST: BELE Ro BILLY E. ROBINSON, SECRETARY