Community Redevelopment Agency

City of Naples City Council Chamber 735 Eighth Street South Naples, Florida 34102 Community Redevelopment Agency Meeting – June 12, 2025 – 8:34 a.m. It is noted for the record that all documentation electronically appended hereto is also contained in the file for this meeting with the City Clerk’s Office. 1) ROLL CALL MOTION by Petrunoff to ALLOW Member Kramer to participate in that day’s meeting via Zoom; seconded by Hutchison and unanimously carried , all members present and voting (Barton-yes, Heitmann-yes Hutchison-yes, Penniman-yes, Petrunoff-yes, Christman-yes). CRA Members Present: Berne Barton Ray Christman, Chair Teresa Heitmann, Mayor Linda Penniman, Vice Chair Terry Hutchison, Vice Mayor Bill Kramer (via Zoom) Beth Petrunoff Staff Present: Gary Young, City Manager Mari Gallet, Deputy City Manager Matthew McConnell, City Attorney Tom Tucker, Deputy Building Official Anita Jenkins, CRA Administrator Robert Middleton, Public Works Director Dan Ohrenstein, City Engineer David Horton, Executive Assistant Others Present: Dan O’Berski Elizabeth Kurtz Isbell Mike Mahigel James Whittaker Lauren Batlle Judy Freiberg Cheryl Dromgoole Paul Stephens 2) PLEDGE OF ALLEGIANCE Chair Christman led in the Pledge of Allegiance. 3) SET AGENDA MOTION by Petrunoff to SET AGENDA; seconded by Penniman and unanimously carried, all members present and voting (Barton-yes, Heitmann- yes Hutchison-yes, Kramer-yes, Penniman-yes, Petrunoff-yes, Christman- yes). 4) PUBLIC COMMENT Elizabeth Kurtz Isbell, President of the Naples Design District, briefly spoke about the 60 percent Streetscape Plan for 10th Street, 1st Avenue South, and 12th Street. Mike Mahigel referenced Streetscape examples from other Florida communities, noting that both Lakeland and Coral Gables have successfully transformed commercial zones into enhanced, beautified areas that create a stronger sense of place. He noted that many businesses in the Design District are pursuing low-cost or no-cost improvements that require City approvals, and he urged for timely

Community Redevelopment Agency Meeting – June 12, 2025 – 8:34 a.m. 2 action. James Whittaker noted the absence of line items for River Park East in the proposed CRA budget, particularly given the ongoing flooding issues affecting that neighborhood. He expressed concerns regarding the backflow valves installed in his neighborhood’s drainage system that he claimed did not function properly. In addition, he mentioned that puddles of water in his neighborhood leave slippery residue, creating hazardous conditions for pedestrians. Lauren Batlle expressed concern regarding the lack of CRA funding allocated to blighted areas. She requested clarification on who is responsible for identifying needed improvements in the River Park East neighborhood. In addition, she noted concerns with pumping Lake Park stormwater into the Gordon River. Cheryl Dromgoole requested that the CRA direct funds to River Park East to clean canals and control flooding. Paul Stephens, former United States Department of Defense Project Manager, stated that a cleaned-out canal functions as an effective component of a drainage system. He indicated that cleaning the canals near the River Park East neighborhood would significantly reduce the flooding issues experienced in that area. He urged the CRA to act before Hurricane Season. Protecting communities from flooding would lessen the insurance crisis in the State, he added. Chair Christman noted that many of the items brought up during Public Comments will be addressed during that day’s meeting. 5) MINUTES 5.A) Approval of the May 21, 2025 Community Redevelopment Agency (CRA) Special Meeting Minutes. MOTION by Petrunoff to APPROVE the May 21, 2025 Special Meeting Minutes; seconded by Hutchison and unanimously carried, all members present and voting (Barton-yes, Heitmann-yes, Hutchison-yes, Kramer-yes, Penniman-yes, Petrunoff-yes, Christman-yes). Agenda Memorandum May 21, 2025 Special Meeting Minutes 6) ANNOUCEMENTS AND PRESENTATIONS None. 7) OLD BUSINESS 7.A) Discussion of 170 10th Street North Property. CRA Administrator Anita Jenkins reviewed the agenda memorandum, and noted that a letter of interest had been received to lease 170 10th Street North, Unit B. In response to Vice Mayor Hutchison, City Manager Gary Young clarified that if the City chooses to lease spaces at the 170 10th Street North property, the City, not the CRA, would serve as the landlord. Dan O’Berski, Partner at Trinity Commercial Group LLC, working alongside CBRE, stated that the CRA’s intent is to maintain the property as-is, with the presumption that it may likely be demolished in the future. In response to concerns regarding flooding in the area, he noted that the space is being offered as a triple net lease opportunity, with most responsibilities assigned to the tenant. Vice Chair Penniman questioned the rationale behind the CRA’s purchase of the property and expressed the opinion that the CRA should not assume landlord responsibilities. She suggested selling the property and utilizing the proceeds for much needed projects in the CRA. In response to Mayor Heitmann, CRA Administrator Jenkins explained that the purpose for purchasing the property was to fulfill the CRA’s goals outlined in the CRA Redevelopment Plan, specifically related to parking, affordable housing, and open space. She agreed with Mayor Heitmann’s suggestion that one potential use of the property could be stormwater storage. Member Petrunoff also expressed support for selling the property. Chair Christman shared his thoughts on the various options the CRA could consider for utilizing the property, including: leasing the property to generate revenue; developing it for workforce housing; scraping the property and holding onto it until a beneficial use is identified; or placing the property on the market for sale. In response to Chair Christman, Mr. O’Berski stated that the current market is not showing improvement in real estate economic values. He added that he has not conducted a valuation of the property within the past 90 days; however, he estimated that the value has likely declined due to a softening market. He advised against scraping the property, noting that a potential buyer

Community Redevelopment Agency Meeting – June 12, 2025 – 8:34 a.m. 3 may see value in the existing structure. Due to the property’s location, Mr. O’Berski stated that there would likely be strong market interest in the property for affordable housing use. In response, Vice Chair Penniman stated that had the property possessed sufficient value, a buyer would likely have already expressed interest. Member Kramer suggested generating revenue from the property by renting space within the building. Vice Mayor Hutchison proposed scraping the property and retaining the open space for potential future use as affordable housing. Chair Christman stated that an estimated valuation of the property is necessary, along with an analysis of potential options for its use, including workforce housing, open space, or parking facilities. Member Petrunoff inquired about the potential cash flow that could be generated if the site were utilized as rental property, as well as the carrying costs it would place on the City. In response to Member Petrunoff, Chair Christman stated that if the building were utilized for housing, current zoning regulations would permit eight residential units above ground floor commercial space. He suggested that a zoning change in the Comprehensive Plan to allow for up to 26 units would be necessary to make the venture financially viable. Vice Mayor Hutchison asked for an investigation into potential management options for the site that would help mitigate stormwater runoff impacting the River Park communities, including the possibility of a pump station. Mayor Heitmann recommended conducting an in-house rental cash flow analysis. She noted that the property was originally acquired for parking purposes and expressed support for utilizing the site for stormwater retention. She spoke out against using the property for affordable housing and suggested holding onto it until options are studied. Mr. O’Berski summarized the discussion, stating that it was evident the CRA had no interest in leasing the site. He acknowledged the CRA’s interest in installing pervious parking with underground water storage while preserving the option for future vertical development. Consensus reached to not lease the property located at 170 10th Street North. City Manager Young suggested preparing two property value estimations: one reflecting the site with the existing building, and one assuming the property has been scraped. Member Petrunoff suggested listing the property at its original purchase price to determine if there is any buyer interest. Chair Christman expressed opposition to an immediate sale, stating that it would be contrary to the original intent of purchasing the property for a beneficial use in the CRA. Vice Chair Penniman noted that the County offers affordable housing incentives for developers and suggested that similar incentives would be necessary to attract affordable housing development within the City. She suggested selling the property and utilizing the money for other CRA initiatives. Mayor Heitmann warned that changes in the Comprehensive Plan to allow for additional units would lead to an undesirable increase in density. Member Barton expressed the opinion that the property was too small to accommodate affordable housing; thus, he suggested selling the property and utilizing the funds for stormwater and resiliency projects. Mr. O’Berski questioned the need for a property value estimate, stating that since the Board’s direction is not to sell the property for less than the City’s purchase price the property estimation would serve little purpose. Chair Christman stated that obtaining an estimate would assist the CRA in determining how far below the purchase price the property is currently valued. MOTION by Petrunoff to DIRECT staff to ascertain the current value of the 170 10th Street North property both with and without the building, and expand on short-term use and long-term use of the property, including considerations for open space, parking, and stormwater improvements to the immediate area and River Park East and River Park West; seconded by Barton and carried 5-2, all members present and voting (Barton-yes, Heitmann-yes, Hutchison-yes, Kramer-yes, Penniman-no, Petrunoff-no, Christman-yes).

Community Redevelopment Agency Meeting – June 12, 2025 – 8:34 a.m. 4 City Manager Young clarified that Mr. O’Berski would be responsible for conducting the property valuation, while the Streets and Stormwater staff would prepare the estimates for demolition and stormwater installation. Deputy City Manager Mari Gallet reminded the Board that the property is currently being marketed for short-term leasing and stated that it would be removed from the market in accordance with earlier Board direction. Agenda Memorandum Letter of Interest 7.B) Consideration of Modifications to and Renewal of the Residential Improvement Program. CRA Administrator Anita Jenkins reviewed the agenda memorandum and reported that work for five Residential Improvement Program applications is nearing completion, with one applicant electing to replace the windows in their home, while two others chose not to. She noted that the Community Redevelopment Agency Advisory Board (CRAAB) recommended increasing the Program’s budget from $200,000 to $400,000 for the 2025-26 Fiscal Year, and increasing the funded amount from $20,000 to $40,000 per approved homeowner application. She stated that there were no new applications at that time, however one home was in the process of being elevated. In response to Chair Christman, CRA Administrator Jenkins expressed confidence that work on all five current applicants’ homes will be completed. She confirmed that the five applicants will spend $100,000 of the $200,000 budgeted funds for Fiscal Year 2024-25. Chair Christman stated that the CRA needed to determine whether to continue the Program and, if so, whether the Program’s budget should be increased, and by what amount. In addition, he stated that the CRA needed to decide whether to increase the individual funding amount from $20,000 to $40,000 and to consider incorporating eligible improvements recommended by the CRAAB. In response, Mayor Heitmann expressed opposition to all the proposals, stating that home repairs often address one issue while leading to additional, larger problems. Vice Chair Penniman expressed agreement with Mayor Heitmann’s remarks. Member Kramer expressed support for the CRAAB recommendations and hoped that the Program would continue beyond its brief initial period. Vice Mayor Hutchison asserted that CRA funding for the Residential Improvement Program contradicts the suggestion made during Public Comments that the CRA has not invested in River Park East. He questioned the advisability of increasing the Residential Improvement Program at that time, noting that the Water Basin Improvement Plan is scheduled for release the following week and may require CRA funding for infrastructure improvements. Nevertheless, he stated that the financial burden of the Program is minimal and expressed support for increasing its funding and expanding the list of eligible improvements. Member Barton expressed interest in continuing the Program and increasing its funding, noting its relatively low cost, while also supporting the pursuit of infrastructure upgrades in River Park East. Member Petrunoff spoke about the need to focus primarily on infrastructure improvements in River Park East. While acknowledging that the Residential Improvement Program was beneficial, Member Petrunoff noted that there has been little interest from residents. In response to Vice Chair Penniman, CRA Administrator Jenkins confirmed that funds may be used for home elevations. Chair Christman expressed support for the continuation of the Program and the recommended funding increase. He expressed support for the inclusion of the CRAAB recommended eligible improvements but did not support the use of funds for appliance replacement. MOTION by Hutchison to APPROVE a $200,000 cap on the Residential Improvement Program, raise the per applicant funding from $20,000 to $40,000, and approve the CRAAB recommended eligible improvements; seconded by Penniman and carried 5-2, all members present and voting (Barton-yes, Heitmann-no, Hutchison-yes, Kramer-yes, Penniman-yes, Petrunoff-no, Christman-yes). Agenda Memorandum DRAFT Residential Improvement Program FY 2025-26 Recess: 10:24 a.m. to 10:37 a.m. It is noted for the record that the same Members were present when the meeting reconvened.

Community Redevelopment Agency Meeting – June 12, 2025 – 8:34 a.m. 5 8) NEW BUSINESS 8.A) Neighborhoods Plan Update. CRA Administrator Anita Jenkins reviewed the agenda memorandum and used an electronic presentation to provide details of the CRA Neighborhood Plans, including strategies and actions identified by participants during the planning process. The neighborhoods addressed included the 41/10 Commercial Area (the Design District), Lake Park, River Park East, and River Park West. She then outlined the critical actions identified for each neighborhood, along with proposed short-term and long-term strategies for each of the neighborhoods. She concluded the presentation by sharing a list of CRA Capital Improvement Projects scheduled for Fiscal Years 2026–2030, along with a line item detailing the projected annual costs associated with the Neighborhoods Plans projects. Chair Christman noted that many of the critical actions identified in each of the neighborhoods have already been addressed and work has been completed within the last five years. CRA Administrator Jenkins responded to questions from Members regarding the various measures implemented to address both the short-term and long-term actions outlined in the adopted Neighborhoods Plan. In addition, she provided updates on progress and ongoing efforts in each designated area. Among these include traffic cut throughs in the 41/10 Commercial Area, Community Development Block Grant (CDBG) funding to pay for street lighting, sidewalks on 7th Avenue North, riprap replacing seawalls in River Park East, Freedom Park drainage, the Rowing Association of Naples relocation in Charlie C. Anthony Park, LED streetlights, State Housing Initiatives Partnership (SHIP) in River Park East, Job Fairs in coordination with the County, canal cleanup, a City liaison for the Neighborhoods Plan project, and allocating CRA funds, Member Barton noted that dredging was not included in the presentation and asked whether this omission was due to CRA funds not being eligible for this use. In response, City Manager Gary Young stated that dredging is not outlined in the CRA Redevelopment Plan and should therefore be addressed by the City Council rather than the CRA. Member Kramer said he recently surveyed the River Park East canals by boat, and noted that he discovered no underwater debris. He did, however, express the need for dredging in the area, noting that he was uncertain whether the canals had ever been dredged. In response to Vice Mayor Hutchison, Public Works Director Robert Middleton stated that dredging the canals in River Park East would offer no identifiable benefit in addressing stormwater flooding. He then provided a brief explanation of how backflow preventers function and affirmed that they serve a useful purpose. He also noted that the seawalls in River Park East are privately owned, and therefore the City would not be responsible for their repair. CRA Administrator Jenkins confirmed that the Residential Improvement Program funds could be used for seawall repairs. In response to Vice Mayor Hutchison, CRA Administrator Jenkins stated that CRA funds could be used for roundabout repairs on 7th Avenue North. Vice Mayor Hutchison expressed concern about the proposal to remove the fence surrounding the grassy area in front of the River Park Community Center, emphasizing that the fence provides important protection for children who play there. In response to reports that the Jade Apartments were recently sold, CRA Administrator Jenkins speculated that the units may be converted to market-rate housing. Chair Christman added that the sale of the Jade Apartments could result in the City losing nearly 200 workforce housing units. In response to Vice Chair Penniman, Public Works Director Middleton stated that while some water mains and sewer laterals in River Park have been replaced over the years, water service lines are typically replaced only when a new home is constructed on a property. He noted that the neighborhood’s water distribution system mains have never been replaced. At Vice Chair Penniman’s request, Public Works Director Middleton agreed to provide a ranking of where the service lines in River Park fall within the Water Distribution Master Plan. Chair Christman stated that the issue would be included on the next CRA agenda. Public Works Director Middleton noted that upgrades to the stormwater system will be discussed during the Multi-Basin Assessment presentation at the upcoming City Council Workshop scheduled for the following Monday, June

Community Redevelopment Agency Meeting – June 12, 2025 – 8:34 a.m. 6 16, 2025. Chair Christman added that information from that meeting will assist the CRA in determining the extent to which it can contribute to infrastructure improvements within the CRA. Agenda Memorandum CRA Neighborhoods Plan, adopted December 2020 Presentation 8.B) Presentation and Direction on the CRA Preliminary Capital Improvement Plan for Fiscal Years 2026-2030. CRA Administrator Anita Jenkins reviewed the agenda memorandum and noted that the Preliminary CRA Capital Improvement Plan (CIP) received a unanimous recommendation for approval from the Community Redevelopment Agency Advisory Board (CRAAB). She then utilized an electronic presentation that highlighted budget requirements and the FY 2025–26 Preliminary Capital Improvement Plan totaling $14,359,000. She then detailed each budget item, including: 1st Avenue South, 12th Steet South, and 10th Street North improvements; Naples Design District improvements; the Design Walk Pilot Project; security enhancements; a landscape vehicle; Neighborhoods Plan projects; and park improvements. Mayor Heitmann expressed opposition to allocating funding for exterior improvements in the Design District, citing concerns over the area's frequent use by delivery trucks. She maintained that funding should be directed to the River Park East neighborhood for infrastructure improvements. Member Kramer expressed concern about making further investments into property that may not have long-term viability, and stated that resiliency needs to be a top priority. Public Comment: Judy Freiberg maintained that the 1969 Community Redevelopment Act, which authorized the creation of the CRA, specifies that its primary purpose is to fund improvements in blighted neighborhoods and to support affordable housing. She asserted that, historically, only three percent of the CRA budget has been allocated to River Park East and West. She expressed concern that many items in the proposed budget did not align with the original directive of the CRA. In response, Chair Christman questioned the validity of the statements made by Ms. Freiberg and requested that the City Attorney review the email she had sent to CRA Members outlining her assertions. He further asked the City Attorney to provide a written response to CRA Members within the next two weeks. He stated that the actual portion of the CRA budget directed toward River Park East and West initiatives is 16 percent. He then stated that Naples' actions to support resiliency are among the strongest in Southwest Florida. Member Petrunoff questioned why funding earmarked for improvements to Charlie C. Anthony Park is included in the Neighborhoods Plan, implying that the allocation of funds for a public park may be inaccurately represented as supporting residential improvements. In response, Chair Christman stated that Charlie C. Anthony Park is a neighborhood park that is intricately connected to and serves the surrounding community. MOTION by Hutchison to APPROVE the CRA Preliminary Capital Improvement Plan; seconded by Penniman and carried 4-3, all members present and voting (Barton-yes, Heitmann-no, Hutchison-yes, Kramer-yes, Penniman-no, Petrunoff-no, Christman-yes). Agenda Memorandum Preliminary CIP Presentation 9) CRA ADMINISTRATOR’S REPORT 9.A) CRA Administrator’s Report - June 2025 CRA Administrator Anita Jenkins noted that the agenda memorandum for Item 9.A includes an update on current CRA projects. Agenda Memorandum 10) PUBLIC COMMENT None. 11) COMMUNICATIONS FROM CRA CHAIR, MEMBERS AND STAFF Vice Chair Penniman cited a study indicating that an upcoming lunar cycle, set to begin within the next three to four years, could significantly impact storm surges over the following decade, and questioned whether current resiliency plans are sufficient.

Community Redevelopment Agency Meeting – June 12, 2025 – 8:34 a.m. 7 Mayor Heitmann expressed concern regarding the cost associated with the Design District Alleyway Activation. In addition, she questioned whether redevelopment incentives in the Design District are necessary, particularly in light of the ongoing parking challenges in the area. Mayor Heitmann also expressed concern about garbage accumulation near the intersection of 4th Avenue South and 4th Street South, and requested that a garbage can be placed at that location. Member Kramer pointed out that a sunken vessel is located in the canal north of the Naples Water Plant and expressed hope that it could be removed. Member Petrunoff proposed categorizing Design District projects based on necessity versus nonessential enhancements, noting that this approach would help the CRA more effectively manage its budget. Vice Mayor Hutchison reminded CRA Members that the Design District Walk Pilot Project was unanimously approved during the January 30, 2025 CRA meeting. Chair Christman recalled that the Pilot Project originated from the 2021–22 Design District Master Plan, which was enthusiastically received by the public at the time. He acknowledged that priorities could shift and suggested that the Pilot Project may no longer be a priority. 12) ADJOURN 1:05 p.m. ____________________________ Raymond Christman, Chair ________________________________ Patricia L. Rambosk, City Clerk Meeting clerked by: ________________________________ David Horton, Executive Assistant Minutes prepared by: David Horton, Executive Assistant Minutes Approved: 8-28-25