Subject:
Title
Resolution approving the use of Tourist Development Tax funds for capital improvements to the Clearwater Beach Municipal Marina.
label
Recommended Action:
Recommended Action
Approval to make a legislative finding that the Clearwater Beach Municipal Marina (Marina/Project) is needed to increase tourist-related business activities in the County.
It is further recommended the Board of County Commissioners (Board) adopt a Resolution approving the use of Tourist Development Tax (TDT) to fund capital improvements to the Clearwater Beach Municipal Marina through the Fiscal Year (FY) 2024 Capital Projects Funding Program (CPFP).
• On February 19, 2025, the Tourist Development Council (TDC) approved the City of Clearwater’s (City) CPFP application for the Marina for a maximum funding amount of $7,350,000.00.
• On March 25, 2025, by a vote of 4 to 1, the Board approved a total of up to $26,400,000 for 5 CPFP projects, including $7,850,000 for the Marina, a public facility; but did not expressly make the legislative determinations required by Florida Statutes to fund a “public facility” capital project.
• This Project is an authorized use of TDT as a publicly owned and operated “public facility” as defined in Florida Statute 125.0104(5)(a)6 that is demonstrated to be a tourist attraction.
• The Board must make a legislative finding that the public facilities are needed to increase tourist-related business activities in the County and confirm the Project meets the requirements in Florida Statutes if the City is to move forward with CPFP funding for the Marina.
• The Board must approve this Project by a vote of 2/3 of its membership (5).
• With Board approval, staff will negotiate an individual funding agreement with the City of Clearwater to be brought before the Board for approval.
• This action, by itself, does not have a fiscal impact. Funding to support the Capital Project Funding Program is budgeted in the FY25 Adopted Budget.
Body
Strategic Priorities:
Prosperity and Opportunity
3.2 Provide and promote tourism opportunities
Summary:
Summary
The Board must make a legislative finding that the Marina, as a public facility, is needed to increase tourist-related business activities in the County before CPFP funding can be awarded as approved. By adopting a Resolution, the Board will formally establish support of the Marina’s capital improvement project.
Body
Background Information:
On February 19, 2025, the TDC approved CPFP funding for 5 projects for a maximum funding of $24,785,000, including the Marina for a total of $7,350,000.
On March 25, 2025, by a vote of 4 to 1, the Board approved a total of up to $26,400,000 for the five projects, increasing the Marina, a public facility, to a maximum funding of $7,850,000; but did not expressly make the legislative determinations required by Florida Statutes to fund a “public facility” capital project.
This Project is an authorized use of TDT as a publicly owned and operated public facility as defined in Florida Statutes 125.0104(5)(a)6 that is demonstrated to be a tourist attraction. In passing this agenda item, the Board must confirm that the following statutory requirements are met:
a. The TDC must recommend the funding of such project. The TDC recommended the funding of this Project at the February 19, 2025, TDC meeting.
b. The Board must make a legislative finding that the public facilities are needed to increase tourist-related business activities in the County. (This is the purpose of this resolution.)
c. An independent professional analysis, funded by TDT, must demonstrate the positive impact of the project on tourist-related businesses in the County. An analysis complying with this requirement and demonstrating a positive projected impact on tourism was provided by Crossroads Consulting Services LLC (Crossroads) as part of the CPFP process.
d. At least $10 million in TDT must have been collected in the prior FY. The gross collection for FY23 was $98,096,192.83, and for FY24 was $96.758,114.61, each far exceeding the $10 million requirement.
e. No more than 70% of the project can be paid for with TDT, and sources of funding for the remainder must be identified and confirmed by the Board. Pursuant to the Marina Project application, the total capital project cost is $43.5 million, meaning no more than $30.5 million of the Project can be funding by TDT. The proposed grant amount is significantly less than 70% of the total. The other funding sources are indicated in the City’s application.
f. At least 40% of all TDT must be used to promote and advertise tourism. The current Tourist Development Plan requires that at least 60% of all TDT be allocated to promote and advertise tourism, exceeding the 40% requirement.
g. The BCC must approve the project by a vote of 2/3 of its membership (5).
With Board approval, staff will negotiate an individual funding agreement with the City of Clearwater to be brought to the Board for approval; funding is not committed until a funding agreement is executed by both parties.
Fiscal Impact:
This action in itself does not have a fiscal impact.
Funding to support the Capital Project Funding Program is provided through the Tourist Development Tax Fund.
Staff Member Responsible:
Brian Lowack, Director, Convention and Visitors Bureau
Partners:
Tourist Development Council
Attachments:
Resolution
Crossroads Memo dated February 13, 2025