CRA trustees approve conversion of city grant to loan for Bluff project; multiple grant guideline updates pass
Loading...
Summary
The Clearwater CRA on Jan. 12 approved converting a previously approved $2.25 million grant tied to the old City Hall/Bluff development into a non-recourse CRA loan (terms/ timing unchanged) and adopted several grant program updates, increasing residential exterior improvement grants to $25,000 and North Greenwood commercial grant max to $100,000.
CRA trustees and councilmembers voted unanimously on multiple redevelopment financing and grant updates at the Jan. 12 meeting.
Trust counsel described a long-running redevelopment agreement for the old City Hall parcel with the Gotham/DiNunzio team, which included a $2.25 million CRA grant originally payable upon substantial completion. The agreement was amended in early 2024 so that the $2.25 million would be payable at commencement of construction if the developer closed by March 1, 2026, and to include a $1,000,000 early-closing incentive.
As the Gotham team asked for tax-related changes, trustees approved converting the CRA grant into a non-recourse loan with the same amount and timing conditions; the loan balance would be discharged by the buyer at project completion. The motion passed by unanimous voice vote.
Separately, trustees approved staff-recommended updates to multiple CRA grant programs:
- The residential exterior improvement grant for North Greenwood increased its maximum award from $20,000 to $25,000 to reflect current materials and labor costs; the program primarily funds exterior repairs and limited interior work for ADA or safety reasons.
- The Downtown/Clearwater commercial grant program was revised to simplify applications, clarify eligibility and disbursement procedures, and improve transparency.
- The North Greenwood commercial grant maximum award was increased from $75,000 to $100,000 to better respond to rising construction costs.
Staff said the CRA has approved or has in-progress 11 commercial projects and 24 total commercial/residential projects for FY 2024-25 with more than $1.1 million approved and nearly $500,000 reimbursed to local businesses to date.
Trustees directed staff to post grant application materials at myclearwatercra.com/grants and continue outreach in North Greenwood.
