City Commission Workshop Meeting

APPROVED:9f20/2018 City Hall City of Eustis, Florida 10 North Grove Street Post Office Drawer 68 Eustis, FL 32727-0068 Meeting Minutes- Final* City Commission Workshop Thursday, August 9, 2018 5:30PM City Hall CALL TO ORDER: Vice Mayor Aliberti - 5:34 p.m. ACKNOWLEDGEMENT OF QUORUM AND PROPER NOTICE Present: 5- Marie Aliberti; Linda Bob; Carla Gnann-Thompsen ; Michael L. Holland; and Robert Morin I. Workshop Items 18-0190 Presentation by Property Appraiser Carey Baker Ron Neibert, City Manager, explained the purpose of the workshop and introduced Property Appraiser Carey Baker Mr Baker presented a comparison of the percent change in property valuations between the three cities of Eustis, Mount Dora and Tavares. Mayor Morin arrived at 5:39p.m. Mr Baker provided a taxable value trend line, minus the net new value (NNV) which also compared the three cities. He then reviewed a breakdown of the property types between the three cities. He commented on the anticipated passage of a third $25,000 homestead exemption. He explained that the first $25,000 applies to the first $25,000 of assessed value with the second $25,000 being taxed and the second exemption applying to the $50,000 to $75,000 of value. He explained that the third exemption would only apply to $125,000 and up. He further explained that, in Eustis, over 45% of the homes will receive no benefit from the third exemption as they are valued at less than $100,000, 18% of the homes will only receive a partial benefit and 36% will receive full benefit. He compared the percentage of homes receiving full benefit between the three cities. He then presented the percentage of revenue loss due to the third homestead exemption between the cities at around 5% each. He compared the revenue loss versus gain from net new construction based on the previous years amount of new construction with Eustis anticipated to recoup more than 50% of its loss through new construction. He stated that the maximum savings to a Eustis resident will be $371 with $189 from the City millage. Mr Baker then commented on the tangible personal property taxes noting that over 10% of the City's tax revenue is from tangible taxes and compared that with Mount Dora and Tavares noting that Eustis' is significantly higher He cited the anticipated improvements by Florida Foods which will generate additional revenues. He explained the reason why neighboring properties often have differing tax liabilities. 18-0191 General Discussion regarding Property Valuations and related Mr Neibert asked if the same property were moved to Mount Dora from Eustis would there be a difference in value with Mr Baker responding affirmatively He stated that assessed value is based on market values within a neighborhood. Mayor Morin asked if there is information regarding the age of the City's homes and the amount of rental properties. City of Eustis, Florida Page 1 Printed on 911412018 City Commission Workshop Meeting Minutes - Final August 9, 2018 Mr. Baker cited the high amount of rentals in Leesburg versus other communities. He commented that neighborhood stability starts with home ownership. He indicated they are seeing a number of rental properties that are being sold to home owners. Mayor Morin commented on his desire to start a home improvement program to increase enthusiasm dn the City's market. Mr. Baker responded that good law enforcement, well cared for roads and good schools are key to increasing values. Mayor Morin questioned the number of homes that are not taxed due to low values with Mr. Neibert stating that 45% of the City's homes are valued at under $100,000. He noted that the City would receive more tax revenue from a comparably priced rental property than from an owner occupied home. Mr. Baker stated that the City's single family home values are going up at the same rate as Mount Dora and Tavares. Mr. Neibert questioned whether or not cosmetic improvements increase property values with Mr. Baker indicating that increases in property values are based primarily on property sales. He indicated he did not see how a home improvement program would improve tax valuations appreciably. He stated the. City is doing a good job with street improvement which is a big quality of life issue for residents. He commented on improved grades to the Eustis schools. Commissioner Bob explained that Eustis Heights and Beverly Shores elementary schools have the same issue with a large number of self-contained classrooms which Jowers the overall grade for the school. Mr. Baker complimented the Commission for greeting the students on the first day of school with Commissioner Bob commenting on the City's summer tutoring program. Commissioner Holland thanked Mr. Baker for the presentation and complimented him for the website improvements. 18-0192 Presentation regarding Business and Development Update Lori Barnes, Development Services Director, provided to the Commission an update on current business activities, development activities and interest in the City. She cited the number of new business tax receipt applications and highlighted a number of new commercial businesses that have opened in the last six months. She then noted new programs including a Welcome New Businesses Bulletin Board in the City Hal/lobby and on the website. She stated they are also working on creating a new business guide that will provide information for new business startups. She noted those will be distributed in conjunction with the Lake Eustis Area Chamber of Commerce. Ms. Barnes then cited various new and pending development projects including Cobb Commerce Park, Discount Tire, and the final building in the Eustis Retail Center which will house Marco's Pizza, Kay Jeweler and Hand & Stone Spa. She noted the grand opening of the new Ollie's Store and Fishman-Sheridan Eye Specialists will be opening a new eye center on South Bay Street. She stated that a disc golf course is being constructed at Palmetto Point and cited the construction of the new skatepark at Sunset Island and the beginning of the final construction at Palmetto Plaza. She reviewed the projects in plan review including Dollar Tree, Magnolia Street Apartments, Oakwood Apartments, Popeye's, expansion of the Storage Depot, and Universal Divide. She then provided a comparison of the Goodwill building versus the Oaks at Summerglen to show the benefits of commercial development over residential. Ms. Barnes reported on the incentive programs administered by Development Services including the annexation incentive program. She provided a review of the tax benefits to annexation for a City of Eustis, Florida Page2 Printed on 911412018 City Commission Workshop Meeting Minutes - Final August 9, 2018 homestead residential property and a non-homestead property. She noted that the City has received a third annexation request under the incentive program. She then reported on the new construction incentive program which provides a water/sewer impact fee waiver. She stated they also offer an expedited permitting/plan review process and cited the recent projects that qualify for the expedited review. She announced that staff would again be offering surplus property either for outright sale or through the mow to own (MTO) program. She stated the City has received three properties from . Lake County with demolitions pending and there are seven MTO terminations. Ms. Bames discussed the recent inquiries into property within the City and cited the following properties: 1) 3000 E. Orange Ave.; 2) 1.26 acres on Northshore Drive for a potential assisted living facility; 3) 17 acres on Orange Avenue at the 44 bypass; 4) 5.82 acres on north SR 19 which is proposed for an office/warehouse or contractors flex-space; 5) 241 acres on the former Pine Meadows golf course property; 6) SR 44 and Hicks Ditch Road; 7) 3.51 acres on CR 44 adjacent to existing Dollar General; and 8) 37.8 acres on Old Mount Dora Road. She cited the County Park on 44144A and a developer that is interested in annexing into the City. She indicated the site has the potential to start the natural progression to the east. Commissioner Gnann-Thompson questioned why the Middle School has not annexed into the City with Mr. Neibert indicating the school would be exempt from the utility tax and they would save 25% on their utility costs if they annexed. Mr. Neibert and Ms. Barnes indicated that is something that staff could discuss with the Superintendent and the local school representative. Commissioner Bob asked about the property across from Trout Lake with Ms. Barnes responding that · is City owned property that the City is seeking a public-private partnership for development with Mr. Neibert confirming it is already located within the City. Commissioner Gnann-Thompson expressed concern about the City becoming too much like south Lake County with all of the housing developments. She questioned the number of proposed new housing subdivisions with Ms. Barnes responding there is a 35-lot residential subdivision, a 14-unit multi-family and a 20-unit multi-family under review. She stated the others are only speculative and there have been no actual plans submitted. She indicated that the majority of the in-City subdivisions are now built-out with only approximately ten lots available. She stated there is not a stock of available lots in the City. Commissioner Holland indicated his belief that the City's existing land use regulations will protect the City. Commissioner Bob commented that the City needs to have infill development. She noted that the City's schools are pretty much maxed out and that would slow down some of the growth. She indicated that the City needs healthy growth. The Commission complimented staff on their outreach to the business community which is helping to improve the growth in business with Mr. Neibert commenting on the City's efforts to mend the image of Eustis not being friendly to business. Tom Carrino, Economic Development Director, reported that the old Lowe's building was recently purchased by a medical group who will build a small number of medical offices with the balance to be a commercial redevelopment. He stated that the existing structure will probably be demolished and indicated staff has been discussing with them how the City can assist including the possibility of creating a new CRA. The Commission discussed the adjoining convenience store/gas station with Mr. Neibert explaining staff has informed the owners of some serious code violation issues that the City will be taking immediate action on and that may help them to accelerate their schedule. City of Eustis, Florida Page3 Printed on 911412018 City Commission Workshop Meeting Minutes - Final August9,2018 Mr. Carrino reviewed the economic development incentive programs including the Gateway Corridor matching grant facade improvement program. He noted that a proposal has been made that the City increase the allowed dollar amounts and that will occur in the new fiscal year. He reviewed the number of applications and completed projects under the program. He then reviewed the economic development incentive program for new construction. He stated there is one project with a pending application for the downtown apartment building. He discussed the CRA tax increment financing program. He cited recent downtown projects the City has used to promote business activity including the El Marie Pizza ria, the watercraft rental business that will operate out of the Crazy Gator using the City's docks and a possible project with Quest Fuel. He indicated the City property located along CR 44 adjacent to the Cobb Commerce Park and stated there is interest in the property but staff is trying to find a user that will result in job creation and small business development. Mr. Carrino then reviewed the various organizations that the City works with to promote economic development and various marketing materials staff is utilizing. He announced an upcoming program called "Opportunity Zones" which allows investors to defer federal tax on any prior gains. He indicated that the IRS is still working on the criteria but Eustis has been designated as an opportunity zone. He stated that as the program is finalized, staff will be getting out information on it. Mr. Carrino stated staff's desire to work on the City's overall brand and economic development message. He explained that staff is conducting retention visits to find out why they are located in the City to help identify assets and advantages to attract new development. He reported on a recent meeting to discuss the business improvement district. He presented a brochure that was designed by staff and produced by HennHouse Printing at no cost to show the downtown businesses what could be done. ll. Commission Discussion Mayor Morin cited the grand opening of Ollie's Discount Outlet and questioned how the curtJ could be removed between the shopping centers with Mr. Neibert indicating he could contact the property owners to determine their willingness to do so. lll. -Public Input Mayor Morin opened the floor to public comment at 7:11p.m. George Asbate encouraged the Commission to consider more incentives for businesses. He commented on the issue with changes in land use. and cited the difficulty a business has experienced in opening. Ms. Barnes indicated that neither the Commission nor administration has authority to allow a business that moves in where there is a change of use occurring without complying at a minimum of ADA standards. She explained some of the issues that have occurred with changes in use with new ADA requirements, ventilation, etc. She indicated that those wanting to open a business need to contact the City first to determine if they can do want they want in that location. She explained that staff has sent information to the commercial property owners to help reduce the number of change of use issues. She questioned whose responsibility it is - the property owner or the tenants' to check into those issues. The Commission questioned whether or not there were other options and did the business need to be fined. Ms. Barnes stated there are two considerations - can the City have an incentive or assistance program to help when there is a change in use. She explained the business under code enforcement performed construction without building permits and did not have a business tax receipt. The Commission commented on the benefit to the community from home ownership. City of Eustis, Florida Page4 Printed on 911412018 City Commission Workshop Meeting Minutes -Final August9, 2018 Mr. Asbate complimented staffs efforts to help businesses know the proper procedures and cited the difficulty in the public knowing what constitutes a change of use. He cited the need to attract more small businesses into the City. He expressed support for increasing the gateway conidor dollar amounts. Jasmine Ali, Florida state University student and former City resident, thanked the Commission for the progress she has seen in the City. IV. Commission Direction Commissioner Gnann- Thompson commented on the detriment to the downtown if the old hospital parking Jot is lost. She expressed support for the City obtaining the parking lot. Mr. Neibert indicated the City could probably get it but at a cost. He indicated there are no current projects looking at the parking Jot. He added that any project that comes in will have to consider parking. He cited the possibility of developing a parking master plan. Commissioner Holland expressed support for fuming the property across from the post office into a parking Jot due to the value of the other parking Jot for development and Commissioner Bob indicated the property across from the post office is not usable for other development. Mr. Neibert noted a request from a developer for individual meetings with the Commissioners regarding the downtown properties. V. Adjournment- 7:29 p.m. City Clerk ~;I Mayor/Commissioner •These minutes reflect the actions taken and portions of the discussion during the meeting. To review the entire discussion concerning any agenda item, go to www.eustis.org and click on the video for the meeting in question. A DVD of the entire meeting or CD of the entire audio recording or verbatim transcript of the meeting can be obtained from the office of the City Clerk for a fee. City of Eustis, Florida Page5 Printed on 911412018