As the Board is aware, the Community Redevelopment Agency (the “Agency”) offers a Commercial Real Estate Redevelopment Grant Program (the “Program”) in order to support qualifying private redevelopment projects that effectuate the Community Redevelopment Plan.  The Program sets forth several notable eligibility requirements, including:

·         Targeted project location of the Downtown, Marine District, or Highway 19 Corridor.

·         Minimum investment of $500,000.

·         Specific outcomes:

o   Purchase and/or significant upgrade of commercial properties.

o   Improvements to the leasehold space…so the building can be prepared for multiple tenants and/or an anchor tenant.

o   Redesign of the building façade and exterior grounds…

o   Jobs creation and business growth…

Awards over $25,000 are subject to Board approval and limited by the amount of funding made available in the Agency’s Adopted Annual Budget.

On March 2, 2021, the CRA Board approved a Commercial Real Estate Redevelopment Grant Award of $400,000 to Widow Fletcher’s, LLC, for the redevelopment of the subject property, which was previously home to Leverock’s and, before that, the Sea Market.  The award, to be paid over three years, was intended to help the restaurateur transform what had become a blighted building and nuisance property back into a marquee waterfront restaurant and community landmark. 

Unfortunately, Widow Fletcher’s, LLC, faced difficulties from the beginning and was not able to execute on its vision.  The CRA only made one of its anticipated three grant payments, and Widow Fletcher’s closed its doors in the fall of 2023.  On December 5, 2023, Widow Fletcher’s, LLC, conveyed the subject property to WF Development, LLC, led by Dr. David Hirschauer, who was part of the previous ownership group; and on December 7, 2023, WF Development, LLC, leased the property to Seafire Grill, Inc., led by Mr. Billy Fernandez (owner of local favorite, the Social NPR), for the operation of a new restaurant, Seafire Grill.  Almost immediately thereafter, our administrative team began collaborating with the owner and tenant on achieving our shared vision for a thriving waterfront destination restaurant at the subject location, which, in addition to being significant in its own right, is part of the greater Aqua Harbor Redevelopment Project.  

As the Board may recall, the Seafire Grill officially opened its doors to the community on March 1, 2024, and provides guests with two distinct experiences.  Upstairs, the formal dining room and bar seat 200 and offer fine dining and spirits.  Downstairs, the restaurant seats 100 and is branded as the “Sunset Cove Grill and Bar,” which offers casual dining, featuring appetizers, handheld sandwiches and fried foods, cocktails and craft beers, and live entertainment. 

As part of opening Seafire Grill, the property owner and tenant built off of the rehabilitation initiated by Widow Fletcher’s, LLC, making an additional investment of more than $900,000.  Highlights of the rehabilitation include:

• Landscaping and site improvements.
• Accessibility improvements.
• Painting, flooring, and carpentry.
• Plumbing, Electric, and HVAC upgrades.
• Energy efficiency improvements. 

Attached, please find the location map and photographs illustrating some of the improvements.

A review of the property owner and tenant expenditures to date indicates that up to $585,000 are eligible Program expenditures, providing the basis for a grant of up to $117,000.

Agency staff finds the application consistent with the parameters of the Program and past approvals granted by the Agency.  In considering the application, staff noted several positive outcomes associated with the redevelopment project, including:

• The re-establishment of a destination waterfront restaurant.
• A significant investment in our community that satisfies all four specific outcomes targeted by the Program.  Since redevelopment began in 2020, the property owners and tenants have invested several millions of dollars, and the taxable value has increased by 71%.
• Though legally separate, this project is an integral piece of the transformative Aqua Harbor Redevelopment Project, which is anticipated to anchor the City’s southern gateway, expand our City’s renaissance out of downtown, advance a decades-in-the-making revitalization of the US Highway 19 Corridor, and bring us closer to realizing our vision for the future (best walkable, waterfront, historic hometown in Florida).  Aqua Harbor cannot reach its full potential without the subject property contributing to the greater whole. 

In order to protect the Agency’s investment in the Seafire Grill Project and to promote the restaurant’s continuing operation, staff proposes to include a clawback provision in the Grant Agreement that amortizes over the tenant’s initial lease period of three years.  The amount of the Grant subject to clawback would be written down by 33% on December 6 of each year of the lease, striking zero on December 6, 2026.