SUBJECT/RECOMMENDATION:
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Authorize City of Clearwater Interim Economic Development Director to enter into negotiations with the Clearwater Urban Leadership Coalition (CULC) for the leasing of certain real properties located at 1321 N. Martin Luther King, Jr. Avenue, 1317 N. Martin Luther King, Jr. Avenue, and 1106 Tangerine Street along with certain property owned by the City of Clearwater Community Redevelopment Agency (CRA) located at 1325 N. Martin Luther King, Jr. Avenue to CULC. (consent)
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SUMMARY:
The purpose of this item is to select CULC as the recommended respondent for Letters of Interest 01-25 (LOI) and to authorize City of Clearwater staff to enter into negotiations with CULC to prepare a lease and operation agreement for the development and use of certain adjacent parcels located within the North Greenwood Community Redevelopment Agency boundaries.
The City is the owner of the parcels located at 1321 N. Martin Luther King, Jr. Avenue, Clearwater, FL 33755; 1317 N. Martin Luther King, Jr. Avenue, Clearwater, FL 33755; and 1106 Tangerine Street, Clearwater, FL 33755 (collectively the “City Parcels”). The CRA is the owner of the parcel located at 1325 N. Martin Luther King, Jr. Avenue, Clearwater, FL 33755 (the “CRA Parcel”). All four of these parcels will be subject to the lease and operation agreement for a unified project.
The City and CRA jointly issued the LOI for the lease and development of the City Parcels and the CRA Parcel as a mini outdoor mall/shipping container village. The parcels collectively have a total land area of 0.347 acres and are within the North Greenwood MLK Corridor.
The City and CRA received one response to the LOI being the proposal from CULC. The LOI review committee (Committee) read the proposal and evaluated the project budget, a financial strategy, and a plan of redevelopment of the City Parcels and CRA Parcel. CULC is proposing to accommodate no less than fifteen businesses to occupy this space. In the event the parties can come to agreement on a lease and operation agreement, CULC will receive $500,000.00 from the CRA for this project.
Certain points to be discussed with CULC in relation to the lease and operating agreement include:
• A potential 5-year initial lease with renewal options, with CULC responsible for all utilities, property taxes, building insurance, and maintenance.
• Potential deferment of rent until the Certificate of Occupancy is issued, after that rent will be adjusted to a rate acceptable to both the City and the CRA.
• CULC must obtain liability insurance acceptable to the CRA and City.
• The CRA’s participation in vetting businesses that will lease space within the development.
• A requirement that CULC submit quarterly reports on the project's progress and milestone for the next quarter.
• CULC’s potential partnership with M1 Containers, the design-build firm behind the Krate at the Grove project in Wesley Chapel, to oversee the construction of container-based spaces.
• The CRA will provide up to $500,000 in funding for eligible expenses directly related to the project, such as the purchase of containers, construction, design, and permitting, with disbursements tied to verified project milestones. CRA funds will not be used for any purposes prohibited by state statutes governing their use.
The proposed project meets the requests outlined in the LOI and the Committee recommends selecting CULC as the winning respondent and authorizing city staff to enter into negotiations for the preparation of a lease and operation agreement.
APPROPRIATION CODE AND AMOUNT:
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USE OF RESERVE FUNDS:
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STRATEGIC PRIORITY:
2.1 Strengthen public-private initiatives that attract, develop, and retain diversified business sectors.
2.2 Cultivate a business climate that welcomes entrepreneurship, inspires local investment, and supports Eco-friendly enterprises, and encourages high-quality job growth.
