[1) Call to Order - Roll Call]
[00:00:07]
CHAIRMAN DAVIS. DIRECTOR. JONAH'S HERE. DIRECTOR. MURPHY. DIRECTOR. ALTMAN. TRY AGAIN HERE. DIRECTOR. BUTLER. EXECUTIVE DIRECTOR. MANNS. CITY ATTORNEY. DRISCOLL. HERE. WE HAVE APPROVAL TO APPROVE THE CONSENT AGENDA. MOVE TO APPROVE. TO HAVE A SECOND APPROVAL.
[2) Approval of Minutes]
MINUTES, MINUTES. OH. EXCUSE ME. APPROVAL OF MINUTES. OKAY. ALL THOSE IN FAVOR SIGNIFY BY SAYING AYE. AYE. I. CONSENT AGENDA MOVE FOR APPROVAL. MOVE TO APPROVE. I'LL SECOND. ALL[3) Consent Agenda]
THOSE IN FAVOR. SIGNIFY BY. AYE. THAT'S FIVE NOTHING BUSINESS ITEM FUNDING REQUESTS FOR[4.a) Funding Request to Support Infrastructure Agreement between the City of New Port Richey and NPR Grand 1, LLC RE: Villa del Sol Project]
SUPPORT FOR THE INFRASTRUCTURE AGREEMENT BETWEEN THE CITY OF NEW PORT RICHEY AND NPR ORDINANCE. A GRAND ONE FOR THE VILLAGE OF SOUL PROJECT, AS INDICATED TO YOU AT YOUR LAST MEETING. THE RECOMMENDATION BEFORE YOU THIS EVENING IS TO SUPPORT, FINANCIALLY THE ESTABLISHMENT OF AN EIGHT INCH WATER LINE AT THE VILLA DEL SOL PROJECT, WHICH WOULD BE INSTALLED TO TRANSMIT RECLAIMED WATER TO THE PROJECT SITE, WITH AN ESTIMATED COST OF $98,500 AND THE TERMS OF THAT AGREEMENT HAVE ALREADY BEEN DISCLOSED TO YOU, AND THE PROGRAM FUNDS, IF YOU APPROVE, THIS WOULD BE USED FROM THE CRA FISCAL YEAR BUDGET 2627 TO REPAY THE WATER AND SEWER UTILITY FUND. AND THE STAFF IS RECOMMENDING THIS AS PART OF THE ECONOMIC DEVELOPMENT. GRANT. REDEVELOPMENT. I'M SORRY, REDEVELOPMENT GRANT AGREEMENT ASSOCIATED WITH THE PROJECT, WHICH WILL MORE FURTHER EXPLAIN TO YOU ITEM.THIS IS ONE COMPONENT OF A FOUR COMPONENT PROGRAM THAT WE'RE RECOMMENDING THAT YOU CONSIDER PUBLIC COMMENT. SEEING NO ONE COME FORWARD, BRING IT BACK FOR DISCUSSION AND VOTE. I HAVE A.
MOVE FOR APPROVAL OF A SECOND. I'LL SECOND. YOU HAVE ANY COMMENTS? NO, WE'VE TALKED ABOUT IT. NO. YEAH. I WOULD JUST SAY THAT THE $150 MILLION PROJECT AND THE INVESTMENT IT'LL MAKE IN THAT COMMUNITY IS WELL WORTH ADDING RECLAIMED WATER, BUT THAT MY CONCERNS OVER THE NORTHEAST CORNER OF THE PROJECT REMAIN OVER POSSIBLE FLOODING THERE, AND THAT IF ANY OF THE PLANNED INCENTIVES FOR THIS PROJECT HAVE A DIRECT IMPLICATION TO THAT, THEN I'LL BE RAISING THOSE CONCERNS. THE I'M GOOD WITH THE MOTION. THANK YOU. ALL THOSE IN FAVOR SIGNIFY BY I, I, I THAT'S FIVE NOTHING. COMMERCIAL REAL ESTATE
[4.b) Commercial Real Estate Redevelopment Grant Agreement – Villa del Sol]
REDEVELOPMENT GRANT AGREEMENT. BILL OF THE SOUL. THIS AGENDA ITEM IS TO REQUEST FUNDING FROM THE COMMUNITY REDEVELOPMENT AGENCY TO COVER COSTS TO. ASSOCIATED WITH A AND A PACKAGE TO ENTICE THE DEVELOPMENT OF THIS 24 ACRE PARCEL AND MR. GAMMON WILL PRESENT THE AGENDA ITEM. AND THEN WE'LL BE PREPARED TO TALK ABOUT THE PROJECT. WE DO HAVE MR. GRADY PRIDGEN IN ATTENDANCE THIS EVENING, WHO IS THE PRINCIPAL OF NPR GRAND ONE, LLC. IN RELATIONSHIP TO THE PROJECT. HE'LL BE ABLE TO TALK ABOUT IT. WE'LL NEED TO CLARIFY ONE OF THE REFERENCES TO THE PROJECT ABOUT THE TOTAL AGGREGATE TO BE INVESTED, AND THAT'LL BE DONE AS PART OF THIS PRESENTATION TO YOU THIS EVENING. AND WITH THAT, I'M GOING TO TURN IT OVER TO MR. GANNON. THANK YOU, MISS MANNS. MR. CHAIRMAN, FELLOW DIRECTORS, AS YOU KNOW, WE'VE[00:05:03]
BEEN DISCUSSING VILLA DEL SOL FOR QUITE A LONG TIME. AS LONG AS I'VE BEEN HERE. BUT I HAVEN'T BEEN HERE THAT LONG. BUT EVEN LONGER THAN THAT, WITH THIS AGREEMENT, WE MOVED THAT MUCH CLOSER TO SEEING THIS PROJECT GET BUILT. STAFF IS REQUESTING AUTHORIZATION TO ENTER INTO A COMMERCIAL REAL ESTATE REDEVELOPMENT GRANT AGREEMENT WITH MPR GRAND ONE ON THE VILLA DEL SOL PROJECT. THIS IS THIS IS WHERE WE NEED TO CORRECT A LITTLE BIT ABOUT WHAT THE INVESTMENT IS. THIS IS AN APPROXIMATELY $106 MILLION REDEVELOPMENT PROJECT CONTAINING 270 APARTMENT UNITS AND 120 TOWNHOMES. WE HAD DISCUSSED EARLIER WHAT IT IS.IT'S THE 24 ACRE FORMER HOSPITAL SITE, REALLY THE SOUTHERN ENTRANCE TO OUR CITY.
IT HAS BEEN A TARGET AREA IN OUR COMMUNITY REDEVELOPMENT PLAN, BOTH IN THE 2019 PLAN, WHICH IS OUR CURRENT PLAN AND ALSO IN THE 2012 PLAN. SO THIS IS NOT NEW STATUS. THE PROPERTY IS CURRENTLY UNDER CONTRACT, LIKE I MENTIONED, OR I'M LOOKING AT MY NOTES, WHICH I DIDN'T PRESENT EARLIER. SO I'M NOT GOING TO SAY THAT IN DECEMBER OF 2024, THE PROPERTY WAS REZONED TO PD D, ALLOWING UP TO 473 UNITS. AND IN NOVEMBER OF LAST YEAR, THIS BOARD DIRECTED THE STAFF TO NEGOTIATE A REDEVELOPMENT AGREEMENT, WHICH WE'RE CONSIDERING TONIGHT. THIS IS THE CURRENT SITE PLAN FROM THE APPLICANT. THE PROPOSAL IS AGAIN TO CONSTRUCT AT LEAST 390 UNITS. 270 OF THOSE WILL BE APARTMENTS. THEY'RE UP IN THE TOP LEFT PORTION OF THE OF THE SITE PLAN. AND THEN TOWNHOMES KIND OF ON THE BOTTOM RIGHT.
THIS IS FROM THE DEVELOPER'S APPLICATION PACKAGE, A CONCEPT RENDERING SHOWING WHAT THE APARTMENT UNITS COULD LOOK LIKE. AND AGAIN, LIKEWISE, FROM THE DEVELOPER'S APPLICATION OF THE CONCEPT RENDERING OF SHOWING THE PROPOSED TOWNHOME UNITS. SO LET'S DIG INTO SOME OF THESE NUMBERS. I PRESENTED THEM BACK IN NOVEMBER, BUT THEY'VE CHANGED A LITTLE BIT SO WE CAN KIND OF GO THROUGH THEM AGAIN. FIRST, LET'S START WITH THE CRA. BASE YEAR IS 2001. IN 2001, THE TAXABLE VALUE ON THIS PARCEL OF PROPERTY WAS $23.5 MILLION. THAT WAS WITH THE HOSPITAL'S OPENING. NOW, WITH VACANT PROPERTY, THE TAXABLE VALUE IS LESS THAN 6 MILLION. OBVIOUSLY, THE GOAL OF THIS REDEVELOPMENT IS TO INCREASE THAT VALUE, HOPEFULLY GREATER THAN IT WAS AS A HOSPITAL AND MUCH GREATER, HOPEFULLY REAL QUICKLY ON TIMING OF WHEN WE GET TAXES.
JUST AS A REMINDER, YOU ALL KNOW THIS, BUT THERE'S A DELAY IN GETTING THINGS DONE. FOR EXAMPLE, IF A PROJECT IS COMPLETED JANUARY 2ND. LET'S JUST THROW A YEAR OF 2024. IF IT WAS COMPLETED JANUARY 2ND, 2024, IT WON'T HIT OUR TAX ROLLS UNTIL JANUARY 1ST OF 2025.
FOR THE FISCAL YEAR, OCTOBER 25TH, ALL THE WAY THROUGH SEPTEMBER 26TH. THOSE TAXES AREN'T DUE UNTIL MARCH OF 26, AND THEN THE CRA DOESN'T RECEIVE THOSE MONIES FROM THE COUNTY AND FROM THE CITY UNTIL A FEW MONTHS AFTER THAT. SO IT CAN BE ANYWHERE FROM 24 TO 28 MONTHS AFTER THE PROJECTS BUILT ON THE ON THE WORST CASE. LET'S DO FROM THE DEVELOPER'S APPLICATION, WE WERE ABLE TO PRODUCE A TIMELINE FOR COMPLETION AND COSTS FOR BOTH THE APARTMENTS AND THE TOWNHOMES. SO LET'S KIND OF WALK THROUGH THIS REAL QUICKLY.
THE DEVELOPER HAS FOUR YEARS, ACCORDING TO THE AGREEMENT, TO COMPLETE THE APARTMENT UNITS AND SIX YEARS TO COMPLETE THE TOWNHOMES. AND HE CAN DO THOSE IN FOUR TRANCHES. IT'S 120 TOWNHOMES. HE CAN DO FOUR TRANCHES OF 30 UNITS EACH. HE'S OBLIGATED TO SPEND THE 106 MILLION. YOU CAN SEE THAT IN THE BOTTOM RIGHT HAND CORNER, $63 MILLION APPROXIMATELY FOR THE APARTMENTS AND $44 MILLION FOR THE TOWNHOMES. THE RESULT OF THIS PAGE SHOWS WHEN WE GET THAT TAXABLE VALUE AND WHEN WE CAN EXPECT TO GET REVENUE INTO THE CRA. SO HERE'S THE CRA REVENUE AGAIN, I ALWAYS APOLOGIZE FOR THESE SMALL NUMBERS, BUT SHOWN ON THIS. SO AS YOU KNOW THE CRA SUNSETS IN NINE. SO THIS SHOWS OUR TAX. BUT TAX INCREMENT REVENUE UNTIL THE END OF THE CRA. YOU'LL NOTICE A COUPLE OF THINGS HERE. WE DON'T REALIZE GROWTH INTO THE CRA TAXABLE VALUE UNTIL 2030. THAT'S WHEN WE YOU CAN FINALLY START SEEING IT THERE. THAT'S THE 28 MILLION. IT'S REAL SMALL TO SEE. BUT IT'S AFTER THAT FIRST LINE. AND THEN THE PROJECT WILL BE COMPLETED AND ON THE TAX ROLLS BY 2034, USING THE CURRENT CURRENT MILLAGE RATE FOR BOTH THE CITY AND THE COUNTY, AND A MODEST 3% ANNUAL INCREASE, THE CRA CAN EXPECT TO GENERATE APPROXIMATELY $35 MILLION. YOU'LL SEE THAT IN THE BOTTOM RIGHT HAND PART RIGHT THERE. THAT'S HOW MUCH COMES INTO THE CRA OVER ITS LIFE.
UPON THE SUNSET OF THE CRA, THAT REVENUE DOESN'T GO AWAY. THE CITY CAN STILL EXPECT TO BRING IN ABOUT $1.3 MILLION PER YEAR FROM THIS PROJECT. YOU CAN SEE THAT KIND OF IN THAT MIDDLE
[00:10:01]
COLUMN, 1.276 IS WHAT IT IS IN 2049, ESTIMATED CITY FEES, CITY BUILDING PERMIT FEES BASED ON THAT $106 MILLION INVESTMENT WOULD BE ABOUT $1.2 MILLION. AGAIN WE WOULD BE COVERING THE CRA WOULD BE COVERING 75% OF THAT DEVELOPER DOING 25%. WATER AND SEWER IMPACT FEES ARE ESTIMATED A LITTLE OVER 1.5 MILLION. BUT THAT REVENUE DOESN'T COME IN AS HE HAS PROVED THAT THERE'S IMPACT FEE CREDITS TO COVER THAT COST. SO LET'S GO THROUGH THE INCENTIVE SUMMARY ON THE NEGOTIATED TERMS. A COUPLE OF THINGS I WANT TO NOTE UP FRONT. NOTHING IS UPFRONT. ALL OF THE ALL OF THE INCENTIVES ARE REIMBURSABLES. SO THAT'S NUMBER ONE. NUMBER TWO, ALL OF THESE INCENTIVES ARE CONTINGENT ON THEM BEING BUDGETED AND APPROPRIATED BY THE AGENCY AND THE CITY. WE HAVE TO DO THAT BY LAW. SO WE CAN'T WE CAN'T DO A 15 YEAR PACKAGE, WHICH GOES EVERY YEAR. THREE CATEGORIES OF INCENTIVES BESIDE THE ONE YOU'VE ALREADY APPROVED EARLIER, THE 98 500 HAS ALREADY BEEN APPROVED. SO THERE'S REALLY FOUR. BUT THESE THREE ARE YOU'RE CONSIDERING RIGHT NOW. THE FIRST IS THE CAPITAL INVESTMENT REIMBURSEMENT EQUAL TO $18,750,000. THAT WILL BE PAYABLE IN TRANCHES BASED ON WHEN CERTIFICATE OF OCCUPANCY ARE OBTAINED, WHETHER IT'S THE APARTMENTS OR ONE OF THE LEVELS OF THE TOWNHOMES, AND THAT PAYMENT WILL BE PAID OVER A 15 YEAR PERIOD. AND WE'VE SPLIT IT BETWEEN APARTMENTS AND TOWNHOMES, 6040 AND THERE'S THERE'S MATH IN THERE, BUT THAT'S NOT TOO IMPORTANT TONIGHT. THE SECOND INCENTIVE IS THE CITY OR THE CRA WILL REIMBURSE 75% OF THE BUILDING FEES. AGAIN, THAT'S ESTIMATED AT ABOUT NINE $900,000. THE DEVELOPER PAYS THE OTHER PORTION. THE THIRD REIMBURSEMENT IS FOR INFRASTRUCTURE IMPROVEMENTS THAT TOTAL ABOUT $3 MILLION. SO THE DEVELOPER PUTS THAT IN, AND WE REPAY THAT OVER A THREE YEAR PERIOD. THE TOTAL INCENTIVE PACKAGE YOU ADD ALL THOSE UP IS 22 MILLION 648, $951. THAT REPRESENTS ABOUT 21% OF THE PROJECT COSTS, AND 65% OF THE ANTICIPATED TIF REVENUE THAT WE GET FOR THE LIFE OF THE CRA. HOW THAT MONEY IS PAID OUT.THIS IS OUR ANNUAL OBLIGATIONS. SO AGAIN, ALL OF THE FEES ARE REIMBURSED FEES, NOT UPFRONT.
THIS SHEET SHOWS WHERE THEY OCCURRED IN 26 AND 27. WE PAY 50% OF THE PERMITS. AGAIN WE PAY 75% OF THOSE PERMITS. AND THE RECLAIM, JUST ASSUME WE PAID HALF AND HALF ON THOSE.
THEN YOU'LL SEE THE $3 MILLION COME OVER THREE YEARS PERIOD DOWN THE MIDDLE COLUMN NOW AGREED UPON TERMS. FINALLY, BEGINNING IN 20 2032, HE STARTS, WE START DOING THE REIMBURSEMENT OF THE CAPITAL INVESTMENT AND THE TOTAL OF $98,000, 98 500 IS INCLUDED IN THERE. SO YOU'LL NOTICE THAT THE BOTTOM NUMBER IS A LITTLE BIT DIFFERENT. IT'S 98,500 BIGGER THAN THE SHEET. I JUST SHOWED YOU. THE LARGEST OUT OF POCKET EXPENDITURE OCCURS IN 2030 YEAR FOR WE'RE OUT ABOUT $3.5 MILLION. AND THEN BY THE END OF THE THE END OF THE TERM OF THE CRA, CRA BENEFITS FOR ABOUT $14 MILLION. OKAY. AS WITH ALL INCENTIVE PACKAGES, A PROJECT LIKE THIS MAY NOT HAPPEN AGAIN. AND THE WORD IS. BUT FOR AN INCENTIVE PACKAGE AND MAYBE FINANCIAL ASSISTANCE. SO THAT'S WHY WE'RE BRINGING THIS TO YOU TONIGHT. WHAT SOME OF THE THINGS WE CONSIDERED STAFF CONSIDERED THE SIZE OF THE PRIVATE SECTOR INVESTMENT.
IT'S CONSISTENT WITH CRP, HAD TO MAKE SURE IT WAS CONSISTENT WITH THEIR ANTICIPATED INCREMENT. REVENUE. IS THE PACKAGE THE APPROPRIATE SIZE, AND DOES IT MEET INDUSTRY STANDARDS? FINALLY, WHAT ARE SOME OF THE THINGS WE LOOKED AT? IT'S OBVIOUSLY A TRANSFORMATIONAL REDEVELOPMENT PROJECT. IT EXPANDS OUR REVITALIZATION OUT OF DOWNTOWN.
THIS PROJECT HAS BEEN IN THE MAKING FOR YEARS. THE DISCUSSIONS ON IT, IT BOOSTS OUR TAX BASE. IT'S CONSISTENT WITH THE CRP, WHICH I HAD MENTIONED. IT'S 106 MILLION IN PRIVATE INVESTMENT, 35 MILLION TIF REVENUE. AND WE ALSO GET THE ADDED TAX REVENUE TO THE CITY. ONCE THE CRA SUNSETS IN 2049. UPON APPROVAL, THE INCENTIVES SHALL BE PROGRAMED INTO THE APPROPRIATE ANNUAL BUDGETS RECOMMENDATION. UPON BOARD APPROVAL, AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE THE COMMERCIAL REAL ESTATE REDEVELOPMENT GRANT AGREEMENT.
THE EXECUTIVE DIRECTOR, CITY ATTORNEY, THE APPLICANT, GREAT BRITAIN, MYSELF ARE ALL AVAILABLE IF YOU HAVE ANY QUESTIONS. WE HAVE ANY PUBLIC COMMENT. SEEING NO ONE COME
[00:15:01]
FORWARD, BRING IT BACK FOR DISCUSSION AND VOTE. CAN I HEAR, MR. CHAIRMAN? I'LL MAKE A MOTION TO APPROVE THE PACKAGE AS IT'S BEEN DESCRIBED. BUT A SECOND. I'LL SECOND. ANYTHING ELSE YOU'D LIKE TO SAY, PETE? YEAH. I THINK THE ONE THING I REALLY WANT TO SAY IS THAT WHEN IT WAS DISCUSSED THAT THE CRA WOULD PAY THE A PERCENTAGE OF THE BUILDING FEES AND SOME OF THE IMPACT FEES THAT WHEN IT'S BEEN STATED THAT THIS MONEY GOES TO THE DEVELOPER OR A LOT OF THE MONEY GOES TO THE DEVELOPER. IN FACT, SOMEONE CAN CORRECT ME IF I'M WRONG, BUT A GOOD BIT OF THESE FUNDS ARE COMING FROM THE ACCOUNT THAT THE CITY HAS IN THE CRA THAT HAS A SIGNIFICANT AMOUNT OF REVENUE AND GOING TO SUPPORT THAT THOSE BUILDING PERMITS AND COMING BACK TO THE CITY FOR, YOU KNOW, IMPORTANT AND VALID USAGE AND THE SUPPORT OF THOSE ELEMENTS OF THE CITY STAFF AND COSTS. SO IT WAS, YOU KNOW, I THINK NOT STATED CORRECTLY WHEN IT WAS DISCUSSED THAT THIS WAS TAKING MONEY FROM FROM THE EXISTING POPULATION, ESPECIALLY AS IT'S BEEN DESCRIBED. SO THANK YOU FOR THAT DESCRIPTION. AND IT'S BEEN A LONG TIME COMING, AND I'M HOPEFUL THAT WE'LL GET THE VOTES TO MOVE THIS FORWARD. OKAY. NO, JUST TO ADD, I'M VERY EXCITED ABOUT THE PROJECT AND I'M LOOKING FORWARD TO GETTING THIS THING MOVING FORWARD. YEAH, I'M LOOKING FORWARD TO IT. ALSO, I KNOW IT SEEMS LIKE A LOT OF MONEY. THE OVERALL PROJECT IS, IS, IS A LOT OF MONEY, BUT IT'S GOING TO HAVE SO MUCH MORE BENEFIT AND IMPACT TO OUR COMMUNITY. SO. THANK YOU. I JUST THINK THAT BRIAN AND I ARE REGULARS AT GRANDMA SALLY'S. WE'LL HAVE TO GET RESERVATIONS ONCE THIS PLACE OPENS UP BEFORE YOU CALL FOR THE VOTE. COULD I JUST POINT OUT FOR THE RECORD THAT YOU HAVE IN FRONT OF YOU A REVISED AGREEMENT THAT WAS BASED ON DISCUSSIONS THAT WE'VE HAD WITH THE DEVELOPER AND AS COUNCIL, SINCE THE AGENDA WAS PROVIDED, ALL OF THOSE CHANGES I'VE REVIEWED FOR LEGAL IMPLICATIONS, AND I'M COMFORTABLE WITH ALL OF THEM. SO WHAT YOU HAVE BEFORE YOU IS APPROVED FROM A LEGAL STANDPOINT, AND THE NUMBERS ARE REFLECTIVE OF THE CHANGES THAT WERE POINTED OUT IN MR. GAIMAN'S PRESENTATION. AND THAT'S THE ONLY THING THAT WOULD BE A SUBSTANTIVE CHANGE THAT WOULD MERIT YOUR CONSIDERATION. I THINK THE REST OF IT WAS, LIKE I SAID, LEGAL ISSUES THAT WE I WAS ABLE TO WORK OUT WITH THE DEVELOPER AND HIS COUNSEL, AND I APPRECIATE THEIR HARD WORK ON IT AND THE FACT THAT WE WERE ABLE TO, TO ACCOMPLISH ALL OF THAT IN THE TIME NEEDED. BUT I JUST WANT TO MAKE SURE THAT YOU HAVE THAT INFORMATION. FOR THE RECORD, ALL THOSE IN FAVOR SIGNIFY BY I, I, I. WHAT DID YOU SAY? NAY.OKAY. I DIDN'T KNOW IF YOU. YEAH, YEAH. SO IT'S 4 TO 1. COMMERCIAL REAL ESTATE
[5) Communications]
REDEVELOPMENT GRANT. OH EXCUSE ME. I DIDN'T MARK IT. OKAY. COMMUNICATION. PATEL. NOTHING FOR ME, SIR. PETE. NO, I JUST LOOK FORWARD. BUDGET SEASON IS COMING AHEAD AND LOTS OF WORK.I'M SURE FOR STAFF. AND I LOOK FORWARD TO PARTICIPATING IN OUR POLICY GOING FORWARD. I LOOK FORWARD TO SEEING PETER IN PERSON. I WONDER HOW HE'S DRESSED. I'M GOOD.
* This transcript was compiled from uncorrected Closed Captioning.