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08.17.2021 - City Council MinutesCity of Clermont MINUTES CITY COUNCIL WORKSHOP August 17, 2021 CALL TO ORDER The City Council met in a workshop on Tuesday, August 17, 2021 in the Clermont City Council Chambers. Mayor Murry called the workshop to order at 6:30 pm with the following Council Members present: Council Members Pines, Entsuah, Bates, and Purvis. Other City officials present were Parks & Recreation Director Scott Davidoff, City Attorney Mantzaris, and City Clerk Howe. OPENING COMMENTS Director Davidoff stated that the purpose of the workshop was due to the Council requesting additional information regarding the proposed Lincoln Park South Lake Alliance project. He informed the Council that Sharon Keys is present on behalf of the alliance to make a presentation and answer questions from the Council. Lincoln Park South Lake Alliance Presentation Ms. Sharon Keys, President, Lincoln Park South Lake Alliance, made a presentation to the Council via PowerPoint. The PowerPoint provided an overview of the project and highlighted the following items: • Who the organization and the need for the project • Potential reach of the project • Phases of Implementation • Letters of Support • Model Programs • Economic Impact • Renovation Budget & Opportunity Cost • Operations Budget • Timeline & Funding Sources • Organization Structure Some key points that were made were: • They are projecting that the facility will be fully occupied within 30 months. • General contractors have walked the site, but a full inspection has not been done of the facility. Areas currently priced are based on market rates and what were visible during the initial walkthroughs. The buildings need renovations to electrical, plumbing, and HVAC, but the structure is sound. • Goal is negotiate the lease so that the South Lake Alliance is not responsible for overhead of the buildings until the construction is complete and the buildings are occupied by tenants. They desire to avoid structured operating deficit. • Funding will be made up of a combination of public, private, and grant contributions. Local government must participate for this project to move forward. • Proposed the creation of a Community Redevelopment District, but not going into the Lincoln Park neighborhood. Ms. Keys concluded her presentation by stating what the Alliance is seeking from the City of Clermont. They are seeking the following: 1 City of Clermont MINUTES CITY COUNCIL WORKSHOP August 17, 2021 1. A commitment to partner on the project. 2. For the City to perform or fund a comprehensive economic impact study on the project. 3. To approve the use of ARPA funds for the project. 4. To apply for the Lake County match for ARPA funds for the project. 5. To form a CRA for the Lincoln Park Neighborhood for economic development. 6. To provide resources to reduce the cost of overhead of the project. Ms. Keys had several speakers within her presentation that spoke as listed below. The first speaker was Dr. Jerry Parrish who discussed potential economic impact of the project. Dr. Jerry Parrish, Chief Economist, Florida Chamber Foundation — Dr. Parrish disclosed that he has no financial interest in the project and represents the Florida Chamber Foundation. He advocated for a full economic impact study to be done for the project. He stated that he is in favor of the project as a means to lift children and adults out of poverty. He informed the Council that in the 34711 zip code, there are 1,190 children under the age of 18 that are living in poverty; 615 children under 12. Ms. Keys introduced Attorney Jimmy Crawford to talk about the use of ARPA funds. Jimmy Crawford, Legal Representative, South Lake Alliance — Mr. Crawford stated that he was going to discuss the financing of the project. He is aware, after a conversation with the City Attorney that no decision can be made on the project at this meeting. Mr. Crawford stated that he believes that American Rescue Plan Act (ARPA) can be used towards the cost of the project at the City level. Mr. Crawford stated that they had communicated with the City of Orlando and they stated that in their interpretation ARPA funds may be used for a community center. They are planning to use their funds to improve neighborhood centers and other social programs. Mr. Crawford asked the Council for permission to work with City staff to determine if ARPA funds can be used for the project. If it turns out that they can be, the alliance will be asking for a portion of those funds. Ms. Keys introduced County Commissioner Sean Parks to discuss the County's commitment. Sean Parks, Lake County Commission Chairman — Supports the South Lake Alliance and the project. Mr. Parks informed the Council that the Lake County Commission voted by unanimous resolution to continue exploring and supporting the project. He personally supports a Public, Private, Philanthropic (P3) model. The County will be receiving approximately $72,000,000 and believes that ARPA funds do qualify for the project. He is talking with Lake Technical College to see if there is opportunity to partner with them on this project for additional dollars. Ms. Keys introduced Ms. Paula Hoisington to speak in support of the project. Paula Hoisington, Board Member, South Lake Alliance — Spoke in support of the project. Ms. Hoisington gave examples of how programs help alleviate poverty. She asked that the City partner with the Alliance and make this project happen. After the presentation, Mayor Murry opened the floor for public comments. Those that spoke in favor are listed below: Chris Walker, 100 E. Minnehaha Otis Taylor 2 City of Clermont MINUTES CITY COUNCIL WORKSHOP August 17, 2021 Cheryl O'Rourke, 20260 Hwy 27 Steve Smith, 1323 Briar Haven Lane, Clermont Seeing no further comments, Mayor Murry closed the floor. Council Member Bates stated that he recognizes the need for it. He wants to take some time to look through the booklet that was created and look at the numbers to get a better understanding. He wants staff to look into whether ARPA funds can be used for it. Council Member Bates — there is a need for it. Want to look through this booklet and look at the numbers. Get a better understanding. Wants city staff to look into whether ARPA funds can be used for it. Asked for clarification on the boundaries of the proposed CRA. Ms. Keys stated that the CRA boundary does not go into the Lincoln Park Neighborhood and ends at East Avenue. Amerial Swart, South Lake Alliance — The purpose of the CRA is to fund both this project and other future projects for that area. Council Member Entsuah asked if the CRA would be an extension of the downtown or a new district entirely. Ms. Swart stated that their intent is to have it be its own district that is specific to the Lincoln Park community. Council Member Bates asked for clarification on the process to create a new CRA. City Attorney Mantzaris informed the Council that the first step is to identify an area as blighted which requires the Council to make certain findings that the area is in need of some special assistance. There is a public hearing process. He cautioned the Council that creating a CRA does have negative impact of property values in the short term, but long term will restore or raise the value. The key is the redevelopment with the premise that over the years the value will go up. Council Member Pines asked the boundaries were determined for the proposed district. Ms. Swart stated that she used previously depressed areas. A study would need to be done in order to determine the real boundaries. Council Member Bates stated that he believes the City has no business doing this solo, so he likes the P3 concept. However, he is not sure the City has the money to invest in this project. He restated he does like the idea and wants to keep the conversation going. Mayor Murry asked staff where they currently stand on the interpretation of use for ARPA funds. City Attorney Mantzaris stated that the next meeting agenda has the agreement for ARPA funds. There has been a lot of discussion on the uses, staff has reviewed it and is not prepared to say the City can use these funds for this project. It has a provision that requires audits and if the audit determines that these funds were not used appropriately, the City has to repay those funds. Director Davidoff clarified for the Council that no funds have been received to date. City of Clermont MINUTES CITY COUNCIL WORKSHOP August 17, 2021 Council Member Purvis stated that he is a proponent of programs like this. He talked about the successfulness of these programs in Pennsylvania and how they staved off downturns in the culture and community. He felt that it was the cessation of funding for social programs that really hurt those communities. However, this is a lifetime commitment by the City and to make a commitment like this is very heavy because funding mechanisms change over time. He expressed where this program will be in 10 to 20 years from now. He asserted that the City cannot carry this project on their own. He is in support to further explore the partnership options. He thanked the alliance for the presentation and is onboard with the concept. Council Member Entsuah agreed with Council Member Purvis. He asked what that backup plan is if the ARPA funds do not come through. Ms. Keys stated that they are looking at grants, but no specific plan. She stated that they are seeking a grant writer to assist. The alliance has talked to the City of Orlando a lot who has showed them how to get funding. Council Member Entsuah stated that he supports the project and wants the City to be a partner. He supports the City funding an economic impact study. Council Member Pines has great concerns about the financial aspect of the project. The City does not have the funds to cover this cost. She does support the concept. She asked who will be running the partnership. Ms. Keys stated that they do not have a plan in place and that would need to be discussed. Mr. Crawford stated that they are asking the Council to direct staff to work with the alliance to submit the proposal to the state to see if it is approved for ARPA funds use. Council Member Entsuah asked if the City and County could ask for a state appropriations for this request. Director Davidoff stated that staff could look at the option and utilize the City's contracted grant writers to look at the various state programs. City Attorney Mantzaris asked for clarification on if Council Member Entsuah was asking for what Director Davidoff referenced or a direct appropriation through their legislative representative. Council Member Entsuah stated that he is not asking for anything right now. City Attorney Mantzaris informed the Council that if they are going to seek a legislative appropriation they need to submit it soon. Commissioner Parks supported the legislative appropriation idea and said the County is formulating its list of priorities now and that the County could work together with the City to pursue it as an option. The County is able to use their ARPA money for job training. Council Member Purvis supported this plan and asked what the next steps were to partner with the County. City Attorney Mantzaris replied that the Council give legislative priorities to the lobbyist and it does not need to be on an agenda. He reminded the Council that if they wish to pursue this funding mechanism they need the state representatives on board to get traction. Mayor Murry expressed concerns with a partnership form of governance. He is concerned about who will lead the partnership. Mayor Murry pointed out to the Council that after 10 years or so, he expects this community center to make a profit. He suggested that the City be the leader on this project and asked the City Attorney if that would be an issue. City Attorney Mantzaris stated that at a very high level, there should not be an issue for this if it is for the public purpose. 4 City of Clermont MINUTES CITY COUNCIL WORKSHOP August 17, 2021 Council Member Purvis stated his position that he would never support the City being the leader on this project as he believes it strays too far from the City's scope of services. He strongly supports the project and supports the City assisting with programs, but believes the City needs to help others step up and not be the crutch that others rely on. Mayor Murry stated that it is the responsibility of a City to run the community center. Council Member Pines stated that if the City were to take the lead, it would require a significant increase in the budget and asked where that money would come from. Council Member Bates agreed with Council Member Purvis that taking over the project is too far from the City's scope at this time. He still supports the City being a partner though. Mayor Murry agreed that the budget would need to be increased for the City, but still stated his support of the City taking on more of a leadership role. He acknowledged that it seemed the rest of Council does not support his position. He stated that the City provides virtually no services for its residents and it is time for the City to step up. Council Member Purvis stated that the City can provide the services tomorrow by providing funding, in conjunction with the County, to place people on a bus to transport them to nearby areas such as Tavares that already have these types of programs. Council Member Pines agreed that the City should not be involved in staffing the facility or day-to-day operations. She reminded the Council that they just voted to not increase the millage rate, but when an organization is looking to add an additional facility, they have to seriously consider increasing taxes. Council Member Entsuah stated that before anybody moves forward, some of these details that the City Attorney mentioned need to be worked out. Council Member Pines asked about the provided agreement. City Attorney Mantzaris stated that the provided MOU needs significant work, and staff needs direction from the Council as to whether they want staff to engage with the school board. He stated the draft agreements he has seen do include 10 year agreement reviews. Mayor Murry asked if there was consensus of the Council for staff to work with the school board and Mr. Crawford on the agreement. Council Member Purvis asked what the expense is for City staff to pursue this. Director Davidoff responded that it is hard to pin down as there are so many moving parts of the overall project. The Council decided that staff should not put any effort into the agreements until such time as the ARPA funds usability is determined. Once the funds usability is determined, staff should make a report back to the Council and let the Council decide if more staff time should be allocated. Director Davidoff asked for clarification on what staff would be looking into and listed off several items that had been discussed during the workshop. The Council said that staff needs to focus on use of ARPA funds; all the other items are premature. City Attorney Mantzaris informed the Council that if they are interested in pursuing grants or funding from the state, an economic impact study would be helpful. It could be done jointly with the County. 5 City of Clermont MINUTES CITY COUNCIL WORKSHOP August 17, 2021 The Council agreed to move forward with the economic impact study due to the timelines for making requests of the state. Commissioner Parks said they were willing to participate, especially in terms of the jobs training component. Ms. Keys thanked the Council for their time and interest. Director Davidoff asked for clarification from the Council if they wanted staff to move forward with the MOU with the school board. The Mayor and the Council stated that the negotiation of the MOU should fall to whoever is leading the partnership. City Attorney Mantzaris explained that the MOU is nothing more than an agreement; if the Council decided to move forward with the partnership, the City Attorney's Office will recommend a firm contract tied to performance. When the Council is ready, they will work with Mr. Crawford and the school board. As to who would sign the agreement, it is undetermined at this time. CLOSING COMMENTS Mayor Murry asked if there were any closing comments by the Council or city staff. No additional comments were offered. L City of Clermont MINUTES CITY COUNCIL WORKSHOP August 17, 2021 ADJOURN: With no further comments, this workshop adjourned at 8:08 pm. APPROVED: Tim Murry, M or ATTEST: v Tracy Ackro ,d Howe, City Clerk ,:.. I" 1�d lw4 � I *T tit'