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HomeMy WebLinkAbout2013-12-04 CRA Board Regular Meeting Minutes MINUTES OF MEETING CITY OF DANIA BEACH COMMUNITY REDEVELOPMENT AGENCY WEDNESDAY, DECEMBER 4, 2013 — 6:00 P.M. 1. Call to Order/Roll Call Chairman Duke called the meeting to order at 6:00 p.m. Present: Chairman: Walter B. Duke III Vice-Chairman: Chickie Brandimarte Board Members: Bobbie H. Grace CRA Executive Director: Jeremy Earle City Attorney: Thomas Ansbro CRA Secretary: Tom Schneider Absent: Board Member: Albert C. Jones 2. Citizen Comments There were no citizen comments. 3. Administrative Reports 3.1 CRA Economic Development Updates Dan Murphy, Economic Development Manager, addressed business retention efforts undertaken concerning Material Handling System; specifically, assisting them in finding a suitable site where the business can expand its operations, and finding Enterprise Zone and state benefits. Retention efforts were also made on behalf of Dockers in assisting them with the process of leasing their restaurant and getting a fagade grant to incentivize a potential lessee. Board Member Grace questioned whether return of the CRA grant given to Dockers has been pursued in light of them turning over their property. Economic Development Manager Murphy responded they have been informed that if the lessee makes significant changes to the restaurant, they have to return the grant. He added the lessee being negotiated with has indicated they would not change anything. CRA Director Earle noted the owner of the property provided a letter stipulating that they would not make any changes to the restaurant in terms of what the CRA has paid for. Chairman Duke commented he is hopeful the new tenant will make Dockers better, and although the CRA's investment should be protected, if the tenant presents us with a situation that something would be better a slightly different way, we should not be penny wise and pound foolish. Economic Development Manager Murphy next addressed Enterprise Zone benefits and efforts to determine which businesses could possibly benefit from them. He explained the way benefits work and noted the CRA has worked closely with the owners of the Holiday Inn Express to help them with the process. Chairman Duke said any time the CRA has successes like this or partnerships with our business owners and developers, they should be promoted and put it out there that we are helping our commercial and community partners to access funds and incentives. Economic Development Manager Murphy described Dania Jai Alai's Enterprise Zone benefits from increased hiring, machinery, and building materials. He noted the CRA is working with Dania Jai Alai to get employees from Dania Beach and nearby communities in order to qualify for the new Enterprise Zone benefits. CRA Director Earle noted Dania Jai Alai is on board with holding a job fair at City Hall and advertising it to our residents. Economic Development Manager Murphy further described the job fair and efforts undertaken to bring it to fruition, noting that training grants, facilitated by the CRA and Work Force One, are available for the people who have been hired. Lastly, he spoke about efforts to facilitate new business creation and how the CRA has been working with several new companies in Dania Beach. 3.2 CRA Development Updates Director Earle said the recently approved Columbus Project is moving ahead and the developers are working on their plat with Broward County. He noted the developers of the Dania Beach Hotel site brought in their plans for site plan review, and he presented renderings of the project, a copy of which is attached to and incorporated in these minutes. Lastly, the developers of the Pirates Inn site are moving forward with their plans and hopefully will submit something to us soon. Chairman Duke referred to a memo from Consultant Damon Adams, copies of which he distributed to the Board, and discussed the proposed projects outlined therein, including Pirates Inn property, Dania Beach Hotel property, Lucky's Hotel, Columbus Project, City Center, and San Soucy. CRA Director Earle noted Kim Briesemeister, MetroStrategies, met with developers of the City Center project today and hopefully something will be forthcoming by January. Minutes of Regular Meeting 2 Dania Beach Community Redevelopment Agency Wednesday,December 4,2013—6:00 p.m. Chairman Duke noted in order to meet the hurdles from the airport settlement agreement so the outstanding loans will be forgiven, all that can be done as a City and CRA Board is to approve good quality redevelopment that falls within the parameters of the vision for downtown and of what we are trying to accomplish economically. He added whether or not the market will believe that we can accept all of these units is out of our control. Vice-Chairman Brandimarte commented the San Soucy project seems to be going on forever. Chairman Duke said he spoke to the owner and this project has not made it to the top of his list. 4. Presentations 4.1 CRA Draft Economic Benefit Analysis—RMA CRA Director Earle noted he asked Redevelopment Management Associates to provide this analysis of what has actually occurred in the CRA from 2009 to the present. Kevin Crowder, CEcD, RMA, gave a PowerPoint presentation on economic and fiscal impacts of CRA activities, a copy of which is attached to and incorporated in these minutes. Kim Briesemeister, Principal, RMA, brought for the Board an economic impact study RMA did for seven CRAB in Broward County. She noted that even as a TIFless CRA, the financial and outside investment impact beginning to happen to Dania Beach is becoming quantifiable. She added the Broward County study shows the importance of tools that are used within a CRA extending beyond the financial part of it. She addressed Dania Beach's ability to leverage City dollars to bring in private sector investment, and emphasized the fact that the City has a CRA is a powerful tool. Mr. Crowder added that the Board should not underestimate the impact of continuing to look at and approve good developments and projects as they come forward. Chairman Duke commented about Dania Beach's tremendous location and noted he used to think location was the key factor in creating value in real estate, but now thinks it is really timing. He added now we have a great location and good market timing occurring at the same time. He questioned whether the study considered the rise in the economy in general. Mr. Crowder responded he ran all of the numbers to look at what the market was doing, and noted there are a number of different ways to increase the tax base. 4.2 CRA Media&Public Relations—Dan Murphy, Economic Development Manager Economic Development Manager Murphy gave an overview of media coverage and marketing message points, a copy of which is attached to and incorporated in these minutes. Minutes of Regular Meeting 3 Dania Beach Community Redevelopment Agency Wednesday,December 4,2013—6:00 p.m. Vice-Chairman Brandimarte felt this is blogging and the City should not go on the internet to counteract someone's personal point of view. She questioned who "City spokespersons" refers to. Economic Development Manager Murphy responded a spokesperson could be any City official, and we are, and will continue to be, asked questions about Dania Beach in person. CRA Director Earle explained at this time of increasing development potential and positive news coverage about Dania Beach, the CRA is suggesting there be a cohesive message that we can all talk about when the opportunity arises. Board Member Grace said she does not buy into the concept of twittering because of the negativity of some people adding to or deleting from what someone may have said. Economic Development Manager Murphy said the CRA will draft the message points and rehearse them with City officials for delivery however they see fit. He noted more news media will be brought into Dania Beach for upcoming events in order to get a much higher profile for the City, and message points would be very useful. Vice-Chairman Brandimarte agreed that twittering could be changed to the wrong person's point of view, and asked why the CRA cannot simply do their own update of what is going on and leave it at that. CRA Director Earle said Twitter and those kinds of things are just tools; basically, the focus is on having message points at the ready whenever someone approaches us and asks what Dania Beach is doing for economic development. He noted the CRA will work with everyone over the next few months so that we all carry the same message. Chairman Duke clarified the intent of this presentation is to get the same, cohesive message out. He said he supports putting together a cohesive marketing campaign, getting it out there, and having consistent talking points. He made note of the challenge of putting the word out citywide, beyond the CRA boundaries. 5. Consent Agenda Items Added to Consent Agenda: #5.5 Items Removed from Consent Agenda: #5.4 5.1 Minutes: Approve minutes of October 2, 2013 CRA Board Meting 5.2 Travel Requests: Minutes of Regular Meeting 4 Dania Beach Community Redevelopment Agency Wednesday,December 4,2013—6:00 p.m. Request of Kathleen Weekes, CRA Coordinator, to attend the 2013 Florida Redevelopment Association Annual Conference in Tampa, Florida on October 31 - November 1, 2013 (Estimated cost$545.59) 5.3 Cancel the January 1,2014 CRA Board Meeting Addendum 5.5 Approve Merchant Assistance Program (1) Program Grant Agreement, (2) Demand Promissory Note, and (3) Declaration of Restrictive Covenants documents Board Member Grace motioned to approve the Consent Agenda, with the addition of Item #5.5, and with the exception of Item #5.4; seconded by Vice-Chairman Brandimarte. The motion carried unanimously. 5.4 Approve the Merchant Assistance Program for Grace Art Center in an amount not to exceed$14,000.00 Chairman Duke referenced the unexecuted lease agreement included in the agenda backup, and requested to see an executed lease from the applicant. Vice-Chairman Brandimarte motioned to approve the Merchant Assistance Program for Grace Art Center in an amount not to exceed $14,000.00, subject to an executed lease; seconded by Board Member Grace. The motion carried unanimously. 6. Proposals and Bids There were no proposals on this agenda. 7. Discussion and Possible Action There were no discussion items on this agenda. 8. Board Member Comments Vice-Chairman Brandimarte asked if Federal Highway would be decorated for the holidays. Chairman Duke said the City was putting up decorations today. Chairman Duke commented he is really interested in City Center and wants the deal done; however, he is concerned about leasing the entire City Hall site for development of only one Minutes of Regular Meeting 5 Dania Beach Community Redevelopment Agency Wednesday,December 4,2013—6:00 p.m. phase. He noted he prefers to take it one step at a time and not tie up all of the land if only part of it is going to be used. 9. Adjournment Chairman Duke adjourned the meeting at 7:06 p.m. ATTEST: CO TY DEVELOPMENT AGENC LOUISE STILSON, CMC WALTER B. DUKE III CRA SECRETARY CHAIRMAN—CRA Approved: February 11, 2014 B� DANIA BEACH COMMUMITY fill" Ef.Q�M�AfiEMClfi Minutes of Regular Meeting 6 Dania Beach Community Redevelopment Agency Wednesday,December 4,2013—6:00 p.m. •h� c �', rt r „ ;�/ � '�"' Ind I��IiCI I �'�4VGtl- +4�iadh�i . •d�� ���Ml�„�.:I � „5 nc'71 dry I 4. iiii ,I 3 t � r�A'++ .�naIIL• r � / � ' ��/ �' i��• 7p ��, �` � .,,�►� � 1. . dMarg lCon' 'wow "iw rti y w i i r+r-....i_ 'r;r��, ._��.-_:�� � I �`I � Lrlw��r � 1 r .,,,•� 'r\ _ n Can gel 1 .._._, ".,R +ww+awr aaata�arr�aa• ��r l r��l _ I �Il�lll�w<•r awwu.�:_.. — ID :` I� I 00110 1010 jim " all Ip f I. 1 kdrlk, glow IL _....• I� I IT < VLL 4 W sit-- 'uW r G � O ����� ��� :,, l� a.` ,� . 'i �� �f �, - - �� �, I�U v _ __ ,.. e � �,., � � ,. � � �r. `. _�t \ �1i i �_. �, _ ����� ., _i �� p 1 1 �= �e� .� �� y ill` �. 1 .� ... � � .:,. 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Direct Redevelopment Expenses (Hard Costs) 60% d F k �' Dania Beach CRA Direct Redevelopment Investments Marketing and P.R. Redevelopment _6% Initiatives 9% .r, parking Garage 46 Economic Impact • The impact that an activity has in the local and regional economy. • Input Output model measures the impact of money flows through the industries and subsectors the activity impacts. • Measured in estimates of — Job creation; — Labor Income; — Value Added; — Total Economic Activity. Economic Output 40.0 $ 2,148,543 $ 2,677,342 $ 4,675,882 5.3 $ 263,547 $ 358,165 $ 591,920 20.1 $ 1,045,610 $ 1,325,255 $ 2,290,030 14.3 $ 730,769 $ 993,709 $ 1,679,835 10.2 $ 444,155 $ 634,273 $ 1,069,109 Average 18.0/yr $ 4,632,624 $ 5,988,744 $ 10,306,776 Dania Beach CRA Economic Impact of Direct Redevelopment Investments $12,000,000.00 $10,000,000.00 $8,000,000.00 . $6,000,000.00 $4,000,000.00 E _ $2,000,000.00 Investment Labor Value Total Income Added Economic Generated Output Dania Beach CRA Direct Redevelopment Investments - Industry Sector Economic Impact Construction of new nonresidential commercial and health care structures Maintenance and repair construction of nonresidential $1 161 987 structures Construction of other new nonresidential structures 352 683 Real estate establishments 322, 16 Architectural, engineering, and related services $310, 09 Advertising and related services $ 93, 86 Museums, historical sites, zoos, and parks $21.05,964 Food services and drinking places $ 87,9 7 Offices of physicians, dentists, and other health $168,71 4 practitioners Other amusement and recreation industries $1 012 9 $0 $500,000 $1,OO ,000$1,500,000$2,000,000$2,500,000$3,000,000$3,500,000$4,000,000$4,500,000 Fiscal Impact and Leverage • Direct Redevelopment Investments ($6.4m) — $888K in Federal Taxes — $283K in state and local taxes • Leverage is the use of financial instruments to increase the potential return of an investment. For a CRA, it represents the total invested in redevelopment activities for every dollar that is contributed by a single entity. Leverage of City Support Project Funding Spent for Every $1.00 of City Funds $1.20 $1.00 I $0.80 $0.60 $0.40 s � 7� $0.20 "kd r �'a� rr7r.•,�y 1'' 2010 2011 2012 2013 2014 Leverage of County Support Project Funding Spent for Every $1.00 of County Funds 1.40 -- $1.26- - 1.20 1.00 -----$0..8 0.80 i ' _ I 0.60 T 0.40 � I I 0.20 � ! 2010 2011 2012 2013 2014 Direct Assistance Programs • Facade Improvement Program • Merchant Assistance Grants • Purposes include : — Improve the physical environment; — Assist local businesses; — Encourage additional investment; — Leverage public funding with private funds. — Enhance the Tax Base. Improved Properties DIRECT INDIRECT • Jaxson's Ice Cream 0Franco's Auto Repair • Millennium Fire & Safety 0Ornamental Home Design • Grampa's Bakery 0Kodner Galleries • Dania Rexall Pharmacy 0Resolutions • The Beauty Factory 0Aaron's • Fetch Branding 0Paolo's 3's Company • Dania Beach Florist • Dockers • King's Head Pub Facade Improvement Programs • Approximately 70% of the businesses reported an increase in sales; • Approximately 85% of the businesses also made interior improvements including new inventory and product lines, merchandising, and display; • Over 90% of the participants received favorable comments from customers. • All businesses experienced an average increase in the annual percentage increase in gross sales of 272% the following year; • The majority sustained an average increase in sales of 222%. Dania Beach CRA Private Sector Assisted Direct Investment $450,000 $400,000 $350,000 - $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 All Assisted Properties Assisted With Facade Assisted With Merchant Assisted Facade & Grant Only Grant Only Merchant Grants Ej CRA Contribution E Business Match Dania Beach CRA 2011-2013 Taxable Property Value Trends for 2011 and 2012 Grant Recipients $6,000,000 $5,000,000 $4,000,000 i i I � i i $3,000,000 I i $2,000,000 I $1,000,000 $0 All Assisted Properties Assisted With Facade Assisted With Assisted Facade & Grant Only Merchant Grant Only Merchant Grants El 2011 Value 2013 Value Dania Beach CRA 2011-2013 Overall Taxable Property Value Trends $600,000,000 - $500,000,000 $400,000,000 $300,000,000 $200,000,000 wx,ra i i I i i $100 000 000 Expanded CRA Commercial in Original Total Property in Total Property in Commercial Property CRA Expanded CRA Original CRA El 2011 Value -J 2013 Value Dania Beach CRA 2011 and 2012 Grant Recipients Percent Change in Assessed Property Value 2011-2013 i 7.0% 6.0% 5.0% / 3 ° 4.0% 3.0% AII_P-r-o -e_r-t-ies Y f y 2.0% OY O • %FIW 0.0% ;.r i -1.0% Or*g+nal Expanded Original—Expanded 01-3-Gr-ant-s—Assisted-w-/—Assisted-w-/—Assisted-w-/—AN-Assisted CRA CRA CRA CRA Currently Facade and Merchant Fa4ade Properties -2.0% Commercial Commercial Underway Merchant Grant Grant (Not Grant / -3.0% Completed) Private Investment Pirates Inn Property $60,000,000 Dania Beach Hotel Property $301000,000 Lucky's Hotel (Holiday Inn Express) $71000,000 The Columbus Project $56,000,000 City Center Project $17,000,000 San Soucy Proiect (180 units, E. Dania Bch Blvd) $45,000,000 Total $215,000,000 • 65,000 square feet of commercial and 1 ,500 new units • 100 new jobs, $50 million in annual economic activity • Approximately $185 million in taxable value when completed. Private Investment Impact • During construction — 2,786 jobs — $146 million in labor income — $351 million in total economic impact — Over $20 million in local and state taxes and fees, and over $54 million in federal taxes. Private Investment Impact • After construction — 100 local jobs — $50 million in total economic impact • Occupancy of the residential units — $63 million in purchasing power — Supports creation of over 500 new permanent jobs New Residential Economic Impact Top Ten Sectors — Annual Economic Impact from New Household Spending Real estate establishments $171938.339 Insurance carriers $4,.850..822 Food services and drinking places $4..385..489 Other amusement and recreation industries $3,,069.,450 Retail Stores - Motor vehicle and parts $21017,894 Hotels and motels, including casino hotels $1,650,684 Insurance agencies, brokerages, and related activities $1,650,219 Retail Stores - Food and beverage $1..507.,446 Other private educational services $1,432.,209 Retail Stores - Furniture and home furnishings $1..027.,751 New Residential Economic Impact Top Ten Sectors — Job Creation from New Household Spending Real estate establishments 123 Food services and drinking places 71 Other amusement and recreation industries 55 Retail Stores - Food and beverage 26 Other private educational services 22 Retail Stores - Motor vehicle and parts 20 Insurance carriers 18 Hotels and motels, including casino hotels 13 Insurance agencies, brokerages, and related activities 12 Retail Stores - Furniture and home furnishings 12 CRA's are the only tools cities have that are dedicated to redevelopment to promote vitality, growth, and job creation. We implore the legislative delegation to act as a leader in ensuring this message is not lost. To do so, would only result in undermining future job creation and widespread "dis-investment" resulting in tax increases to the general public and more strain on the state budget through unemployment rectification. Thank you for your consideration. Sincerely, Judy Pa ayor Pe land, Mayor Fis ay r ,�6vn of avie City of Deerfield Beach Ci ompano Beach J C per, r Frank B.Talerico,. Mayor Peter Bober, Mayor C o daI ac City of Margate City of Hollywood o P. Sei9r, Mayor City of Fort Lauderdale PUBLIC PERCEPTION IS FORMED BY MEDIA COVERAGE ❑ Thirty-second sound bytes in news media, web sites or Twitter help define Dania Beach's economic development. ❑ Developers, investors and business owners research information remotely, often via search engines and other informal sources. ❑ Consistent, accurate and salient message points are an excellent way to spark and sustain interest and differentiate the city from competitors. The Dania Beach CRA Will Develop three to five Marketing Message Points ❑ They'll help frame issue "sound bytes" quickly, overcome negativity and communicate the city's many attributes. ❑ When understood and repeated by various city spokespersons, message points create the city's "brand identity" and convey its true potential for economic development. ❑ Certain interview techniques increase the effectiveness of message points. The CRA will share these techniques and rehearse message points with Dania Beach spokespersons at their convenience.