Council presses developers on who owns Cleveland Street properties and tax status as activation plans proceed

Councilmembers used a May 28 Clearwater special work session to press presenters for greater transparency about who owns the Cleveland Street buildings, why many parcels are held in limited liability companies and whether tax‑exempt entities are involved in commercial activity. The mayor said the community wants to know "who actually owns these properties," and councilmembers repeatedly asked whether invited presenters or the Flag Service Organization appeared as owners on the property‑appraiser rolls.

City staff and developers answered in part: the economic development director said staff used property‑appraiser records to list owners in the city presentation. Scott Dobbins, who runs leasing and activation for the Cleveland Street Alliance, said many of the recent historic renovation activities "have been funded by the parishioners of the church," and described the Alliance’s role as funding, sequencing and tenant curation rather than necessarily serving as the title holder for each address. Dobbins said typical development practice uses special‑purpose LLCs for property ownership and that developers often keep specific membership private for legal and liability reasons.

Councilmembers pressed on the tax question. Vice Mayor Cotton read a list of property‑appraiser tax records to make the point that the Church of Scientology and associated parishioners pay taxes on many downtown properties; he told the council "Scientology is paying taxes, they're the largest taxpayer downtown," and urged caution about assuming a blanket tax‑exempt status for all parcels. Developers and staff emphasized that certain uses or portions of properties may be tax‑exempt while commercial activities pay tax, and that ownership structures vary by parcel.

Several councilmembers also raised concerns about how redevelopment and curated leasing will affect smaller, local operators. Councilmembers asked whether rents and tenant selection could price out existing small businesses; Dobbins and other presenters said they were "curating" tenants with a mix of local, regional and national operators and that LOIs and lease negotiations are in progress. Dobbins confirmed the EVO announcement and a "modern Asian restaurant" (described as Sheng during the session) as public items; other lease details are being finalized and subject to confidentiality.

Presenters generally declined to disclose the names of individual members of development LLCs during the session, saying investor privacy and legal structures limited what could be shared. Councilmembers said public disclosure of owners would help build trust, while others cautioned that privacy protections for LLC members are common practice in real estate. The session closed as informational; staff will continue normal review of submitted materials and council members may request follow‑up information. No votes or formal actions were taken.