This Commission Meeting was conducted utilizing Communications Media Technology. Some Staff members were present in the Commission Chambers while others were present via the Zoom application.
ELECTED OFFICIALS PRESENT
IN CHAMBERS:
Shirley Groover Bryant, Mayor
Tamara Cornwell, Vice-Mayor, Commissioner-at-Large 2
Sunshine Joiner, Commissioner, Ward 2
Sheldon Jones, Commissioner-at-Large 1
Harold Smith, Commissioner, Ward 1
Brian Williams, Commissioner, Ward 3
STAFF PRESENT IN CHAMBERS:
Mark Barnebey, City Attorney (Entered the meeting at 4:33 pm)
Jim Freeman, City Clerk
Edward Johnson, Interim CRA Director
Mohammed Rayan, Public Works Director
Scott Tyler, Chief of Police
Cassi Bailey, Assistant City Clerk
Penny Johnston, Executive Assistant
STAFF PRESENT ELECTRONICALLY:
Todd Williams, Information Technology (IT) Consultant
Mayor Bryant opened the meeting at 4:30 pm.
Mr. Freeman explained to the Commission the format for today’s Workshop. He also explained that they are asking for recommendations at the 7:00 pm meeting. They would then follow the statutory requirements for unsolicited proposals.
1. UNSOLICITED PROPOSAL DISCUSSIONS
· ReEnvision Palmetto, LLC (45 Minutes)
Frank DeBose, President of ALFA Residential Development Holdings LLC, discussed their vision for what they can bring to Palmetto. He highlighted the PowerPoint, which was included in the Agenda packet. “Elite Workforce Housing” is a term they like to use for their designs. They are proposing to do a total of 4 projects on 7 properties. Mikhail Scott spoke on the elite workforce housing apartment complex. Mr. DeBose discussed the townhomes, which would be for sale around $275,000 with down payment assistance, etc. Rental properties will be for apartment rentals. David Carmena discussed building quality units. The property he highlighted was at 301 7th Avenue West which would be where mid-rise market rate condominium units would be for sale. Mr. Debose went on to discuss the mixed-use development at 401 6th Street West.
Commissioner Jones questioned the 7th street parcel and what would happen if they couldn’t obtain that private property. The interest is there from the current property owner, per Mr. DeBose. The townhomes were
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questioned. Commissioner Jones didn’t know if that’s affordable for that area. Mr. DeBose answered that they’re aiming for a mortgage around $1400-$1500 a month.
Commissioner Smith loved the plan. He believed the price of $275,000 would be great if they can achieve the $1400-$1500 monthly payment. It will clean up some of these areas.
Commissioner Joiner agreed that these were great ideas. She questioned if this was an all or nothing deal. It was answered that if they were to prioritize, the elite housing would be the highest priority. He went on to prioritize the rest of the projects.
Mayor Bryant asked about the moving components and the ability for these properties to remain on the tax roll.
Commissioner Williams thought the projects were good. He sees some concerns, such as the timeframe, survival of HOAs, and the management component. It was clarified that each project would have its own team to get the project done. They are not contingent on each other. They will start spending money once they have site control. The contract would say they have site control for a designated period.
Commissioner Cornwell expressed concern that they’ve never worked with them before. Mr. DeBose explained the process for each project. Commissioner Cornwell asked how they would stop someone from purchasing a townhome and then turning it into a rental. They couldn’t but they would have some control through the HOA’s. A 3 bedroom/2.5 bath would be approximately 1200-1300 square feet over 2 stories. She would like to phase these projects and see how it is to work with them and see how the products are produced. She was very interested in the townhomes, but hesitant on doing all the properties at once.
Mr. Freeman clarified that the only ask of the CRA Board is the contribution of the land.
· Gray Property Group (45 Minutes)
Nick Gray, from the Gray Property Group, highlighted the PowerPoint which was made part of the minutes. This project would be on the corner of 10th Avenue and Riverside Dr. They are proposing to purchase 320 10th Avenue West and develop it together with 336 10th Avenue West.
Commissioner Williams liked the project. He thought it had good merits. He had several questions/concerns surrounding the parcel. They discussed the coastal high hazard regulations, impacts it may have on setbacks, the 7% fee vs. flat price for parking spaces, and the storm water plans/vault system.
Commissioner Jones questioned the 99-year lease. Mr. Gray explained that the idea is that his company takes ownership of the entire structure and would be wholly responsible for the project. Discussions continued between Mr. Gray, Mr. Morris and Commissioner Jones regarding being compliant with the sewer system needs/upgrades, downstream lift stations, coastal high hazard regulations, the storm water system. Commissioner Jones opined that the project looked great. He also noted that a traffic study should be done to account for the 400 parking spaces and the traffic that may bring to the area.
City Commission/CRA Workshop
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Commissioner Smith asked Mr. Barnebey if it would be the City or the CRA paying the $8 million. Mr. Freeman responded that they could re-invest the $1 million they get from the property back into the project, along with the $400,000 they get from Safe Harbor Marina, and an additional $1 million from reserves. That would total $2.4 million coming from the City. The City would take out a 15-year loan for the remaining 5 ½ million dollars. Fifteen years is the length remaining in the CRA. The CRA would pay the debt service with the TIF that comes in as part of this project. TIF monies could be used with the tax revenue that would be generated over the years. Mr. Freeman explained that they would be using the CRA TIF rebate to pay the debt service, therefore they wouldn’t be able to incentivize beyond that. Mr. Johnson further noted that this is a legitimate collaboration for a CRA investment. It is a City owned property but is within the CRA. Legal has agreed.
Mr. Barnebey stated it is okay for them to invest in a project like this, but they have reached out to the bond council for further clarification. To date, they have done TIF reimbursements, not upfront payments.
Commissioner Cornwell discussed the restrictions on the property staying a parking lot. Mr. Barnebey responded yes, there is a restriction on the property, but it is not clear cut. We would be providing more parking here and Safe Harbor has agreed to putting parking on the site. She was also concerned with the water storage, traffic pattern, fire safety, foot traffic, etc. She also asked what the rental rates would be. It was answered that a 2 bedroom would be approximately $2650/month and $2800/month for 3 bedrooms.
Commissioner Joiner questioned the parking/control areas. She appreciated the effort they have put into this presentation.
· Stadler Development (45 Minutes)
Nick Stadler presented a Powerpoint, which was included in the Minutes. He began by discussing the history of their projects and introducing their new proposal, which includes 3 properties.
Commissioner Williams questioned the adjourning property, the old oriental village. It was answered that they are under agreement with the sellers of that land. Commissioner Williams noted that the boat spaces have been removed, which was part of the original agreement. They discussed oversized parking spaces and the incentives they’re asking for. Commissioner Williams was not in favor of what was being presented.
Commissioner Joiner asked if they are proposing to do all 3 properties or nothing at all. They responded that they would be comfortable with moving forward with the Riverside property and the old Slicks parcel, but they would need additional funding for parking.
Commissioner Cornwell emphasized that this was a tremendous change from the original design. They won the bid because they said they could do certain things at a certain cost. It is now a totally different proposal. She loved the original design. She was hesitant on all these changes. She would not move forward until she had a better understanding.
Mr. Freeman clarified they are asking for the contribution of the land value, a waiver of impact fees, and an 80% rebate of the TIF. They continued to discuss the total amounts they are asking the City/CRA for.
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Mr. Barnebey asked Mr. Stadler if they don’t get the 320 10th Avenue West parcel, how they were on the parking spaces needed for each project per our code. Mr. Barnebey reminded the Commission that their due diligence is up on October 9th for the Riverside Property. This is a different proposal all together.
Mr. Stadler agreed that their current proposal had changed dramatically. He explained that the pro-formas weren’t working. They must get to a 6.5% return on cost to get financing.
Mr. Freeman reminded the Commission that they are asking for recommendations at the 7:00 pm meeting if they want to move forward with any/all of the unsolicited proposals.
Commissioner Cornwell opined that she was feeling rushed with this decision. She didn’t feel comfortable with making a decision at the 7:00 pm meeting tonight.
Mayor Bryant adjourned the meeting at 6:42 pm.
Minutes approved: OCTOBER 21, 2024
JAMES R. FREEMAN
James R. Freeman
City Clerk