Fort Walton Beach Council agenda — 02-12-13--cra — reading text

Present Trey Goodwin Council Seat 4 Present Bobby Nabors Council Seat 5 Present Bull Rigdon Council Seat 6 Present Dick Rynearson Council Seat 7 Present Mr. Griggs arrived at 5: 02 pin. Dr. gossom was absent. 2. Pledge of Allegiance 3. Presentations AN ORDINANCE OF THE CITY COUNCIL OF FORT WALTON BEACH, REPEALING ORDINANCE 1747, WHICH REPEALS THE 2007 COMMUNITY REDEVELOPMENT AREA PLAN; PROVIDING FOR SEVERABILITV; AND PROVIDING AN EFFECTIVE DATE. Synopsis: ( Fnginecring & Utility Services Director) Repeals the 2007 CRA Plan in order to adopt the 2012 CRA Plan. I A( NIENIS: Ord'mxn,, 1 - 41 ( PI) F) Tim Bolduc, Acting Engineering/ Utilities Director, advised that Ord. 1869 repeals the 2007 CRA Plan, which was adopted by Ord. 1747 in 2007, and allows the 2012 CRA Plan to be adopted by resolution. Mr. Bolduc informed a resolution has been drafted to adopt the 2012 CRA Plan which will be considered at the upcoming Council meeting. This is an information item for the CRA and no vote is needed. CommtmtN RedtnelaPrnen( Agene, Page l Packet Pg. B  5. 1 Regular Meeting Minutes September 11, 2012 2. A RESOLUTION OF THE CITY OF FORT WALTON BEACH, FLORIDA, ADOPTING THE 2012 COMMUNITY REDEVELOPMENT AREA PLAN UPDATE, AND PROVIDING AN EFFECTIVE DATE. Synopsis: ( Engineering & Utility Services Director) For information only - Resolution 2012 -20 adopts the 2012 CRA Plan and will be considered by the City Council on September 25, 2012. AI JACHMIAIS: H- 1'_ 01'_ ( ItA Plan 6 20 12 t PDF) Mc Bolduc informed this is the resolution to adopt the CRA Plan and is for information only. The resolution will be considered by Council at the upcoming Council meeting. 4. Approval of Agenda 1. Approval of Agenda Synopsis: ( Executive Assistant) The vote on the motion to approve the agenda as presented carried unanimously. RESULT: APPROVED JUNANIMOUS1 MOVER: Dick Rynearson, Council Seat 7 SECONDER: Bull Rigdon, Council Seat 6 AYES: Reeves, Goodwin, Nabors, Rigdon, Rynearson ABSENT: Bobby Griggs, Joyce gossom 5. Approval of Minutes 1. Tuesday, June 26, 2012 5: 00 PM 6. Public Comments None. 7. Action -Direction -Discussion 1. Revised Interlocal Agreement for Sound Side Development Synopsis: ( Engineering & Utility Services Director) Staff requests CRA Board of Commissioners authorization to execute a revised Interlocal agreement for the Sound Side Development to reduce the City' s responsibilities in the infrastructure construction. I IA( H ( NIY S I. S: Sonvd S,& lmc, kS, 1 rxcancxl OF25. 2010 ( PDr) So um1 So, In"' I"" I Amend nem 08 2'_0. 012 ( 1) 0() The City Manager explained that during their review of the project, HUD determined that the secured loan amount could be increased to accommodate the general contractor performing the infrastructure improvements, allowing the general contractor to complete construction of the entire project. Therefore, the Interlocal Agreement is revised to reduce the CRA' s financial Co..., in Redevelopment Agemq• Page 2 -... Packet Pg. 9  F-5 1- 1 Regular Meeting Minutes September 11, 2012 contribution from $ 2, 5000, 000 to $ 700, 000, benefiting the City by allowing the reallocation of the remaining funds to other projects and programs within the CRA. The vote on the motion to authorize the CRA Chairman to execute the amended Interlocal Agreement with the Fort Walton Beach Housing Authority and Sound Side apartments, LLC, for the Sound Side apartments development and any accompanying documents associated with the Interlocal Agreement, carried unanimously. RESULT: APPROVED [ UNANIMOUS] MOVER: Bobby Nabors, Council Seat 5 SECONDER: Dennis Reeves, Council Seat 3 AYES: Griggs, Reeves, Goodwin, Nabors, Rigdon, Rynearson ABSENT: Joyce gossom 2. Approval of the :Meeting Schedule for the CRA Ad -Hoc Citizen' s Advisory Committee Synopsis: ( Engineering & Utility Services Director) Sets the schedule, including the first meeting, for the CRA Ad -Hoc Citizen's Advisory Committee. Stella Jones, planner, advised that all seven members of the CRA Ad -Hoc Committee have been appointed, and the resolution creating the committee states that the committee will meet no less than monthly with a one -year time frame. Ms. Jones informed the best dates for the committee to meet is the third Wednesday of each month at 5: 30 pm, with the first meeting scheduled for October 17, 2012. At that meeting, a chair and vice chair will be selected and goals and objectives will be discussed. The vote on the motion to hold the CRA Ad -Hoc Committee meetings on the third Wednesday of each month at 5: 30 pm, with the first meeting scheduled for October 17, 2012, carried unanimously. RESULT: APPROVED [ UNANIMOUS] '.. MOVER: Bobby Nabors, Council Seat 5 SECONDER: Dick Rynearson, Council Seat 7 AYES: Griggs, Reeves, Goodwin, Nabors, Rigdon, Rynearson ABSENT: Joyce gossom 8. Director /Staff Reports The City Manager updated the CRA on the downtown pedestrian improvements, stating he has received information from the consultant and will forward a letter to Rep. Matt Gaetz who will assist with the City' s request for improvements to the FDOT. 9. CRA Board Member Reports Mr. Reeves stated the importance of the CRA ad -hoc committee is discussion of funding and the use of vacant parcels for parking. Community Redevelapmrnt Agency Ng, 3 Packet P0. 10  5A] Regular Meeting Minutes September 11, 2012 10. 10: Adjourn: 5: 09 pro Communlry Redeveloprnem A, nm Page 4 PackelPg. 11 1. BACKGROUND: 1. 1. In June 2010, the Community Redevelopment Agency Board of Commissioners and City Council executed an Interlocal Agreement with the Fort Walton Beach Housing Authority ( FWBHA) and Sound Side Apartments, LLC for infrastructure improvements at Sound Side Apartments. 1. 1. 1. The City agreed to contribute up to $ 2. 5M in CRA revenues for site demolition, infrastructure improvements, restoration, and other qualifying costs towards the Sound Side development. 1. 1. 2. Sound Side Apartments, LLC agreed to repay the $ 2. 5M at 1. 5% interest with a maximum annual payment of $119K. 1. 2. In September 2012, the CRA Board and City Council executed the First Amendment to the Interlocal Agreement to reduce the loan amount from the City to $ 700K for site demolition and other qualifying costs. The City was removed from any participation in the infrastructure improvements. The repayment of the $ 700K was at 1. 5% interest with a maximum annual payment of $52, 142. 41. 1. 3. The U. S. Department of Housing and Urban Development ( HUD) has completed their review of the Development Application and has set a closing deadline of February 191h. 2. DISCUSSION: 2. 1. During HUD' s final review of the development application, HUD commented on the First Amendment to the Interlocal Agreement and requested revisions, which are incorporated in the Second Amendment to the Interlocal Agreement. The proposed revisions to the Interlocal Agreement are as follows: 2. 1. 1. Adding Section 1( g) to the Interlocal Agreement - " This Agreement sets forth the terms and conditions of the agreement between the parties to provide in -kind services and funding for qualifying costs associated with the Project and site demolition". 2. 1. 2. Revising Section 6( a) of the Interlocal Agreement as follows - " The City will adopt a special assessment pursuant to chapter 170 of the Florida Statutes to recover the expenditure of all qualifying costs associated with the Project and the cost of site demolition that will be initially paid from Revenue Special Trust Pagel of 3 Packet Pg. 12  7. 1 Funds of the CPA. The total special assessment will be charged against the Property at 26, 28, 30, 32, 36, 38, 40, 42, & 44 Carson Drive SE, Fort Walton Beach, Florida, and shall, until paid in full, remain a lien, coequal with the liens of all state, county, and municipal taxes and superior in dignity to all other liens, titles, and claims, other than as set forth in this Agreement. The parties acknowledge that the total estimated qualifying costs and Post 9- 4he o` d .. t,.__ _ in fin. tMEt _. .... alat... Bests site demolition will not exceed $ 700, 000. The total amount shall be repaid by the Property owner to the City at no more than $ 52, 142. 41 per year at one and one -half percent ( 1. 5 %) interest, and shall be payable no sooner than three years after the Closing (