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Minutes 06-13-23Minutes of the Community Redevelopment Agency Board Meeting Held on Tuesday, June 13, 2023 at 6:00 PM City Hall Chambers, 100 E. Ocean Avenue and GoToWebinar Online Meeting Present: Chair Ty Penserga Vice Chair Thomas Turkin Board Member Angela Cruz Board Member Woodrow Hay Board Member Aimee Kelley 1. Call to Order Chair Penserga called the meeting to order at 6:00 P.M. 2. Invocation The Invocation was given by Board Member Hay. 3. Pledge of Allegiance Thuy Shutt, Executive Director Tim Tack, Assistant Director Kathryn Rossmell, Board Counsel Tammy Stanzione, Deputy City Clerk Board Member Aimee Kelley led the Pledge of Allegiance to the Flag. 4. Roll Call Ms. Tammy Stanzione, Deputy City Clerk, called the roll. Vice Chair Turkin joined virtually. A quorum was present. 5. Agenda Approval A. Additions, Deletions, Corrections to the Agenda B. Adoption of Agenda Chair Penserga noted Item 8A should say recap and not announcement since the event occurred. Additionally, he asked the Board if they would like to hear any items from section 15. No Board members wanted to hear any items from section 15. Motion: Board Member Kelley moved to approve the agenda, as amended. Board Member Hay seconded the motion. The motion passed unanimously. 6. Legal Ms. Kathryn Rossmell, Board Counsel, stated there were no updates. 7. Informational Items and Disclosures by Board Members and CRA Staff: Meeting Minutes CRA Board Meeting Boynton Beach, FL June 13, 2023 A. Disclosure of Conflicts, Contacts, and Relationships for Items Presented to the CRA Board on Agenda Board Member Kelley had no disclosures. Board Member Hay disclosed he attended the P2P meeting on June 12. He said County Commissioner Bernard was in attendance and turnout was good. Chair Penserga had no disclosures. He stated he attended the Rock the Plaza event, and it was great despite the weather. He also attended the ribbon cutting for Dr. Sally's dental office. Vice Chair Turkin had no disclosures. Board Member Cruz had no disclosures. She also attended the Rock the Plaza and ribbon cutting events. She thanked staff for their hard work. 8. Announcements and Awards A. Recap of Rock the Plaza at One Boynton Ms. Mercedes Coppin, Business Promotions and Event Manager, recapped the event. She noted the event activated One Boynton with live music and entertainment and included 8 Boynton Beach Bucks offers. She said they conducted a ribbon cutting ceremony for Dentology and they disseminated information about BBCRA projects. 9. Public Comments The public comment section of the meeting is for public comment on items that are not on the agenda. For items on the agenda, the public will be given an opportunity to comment at the time each item is considered. Each speaker will be given a total of three (3) minutes to comment; however, the Board retains the right to reduce the number of minutes prior to the start of public comment. Persons making public comment may not assign or donate their public comment time to another individual to allow that other individual additional time to comment; however, any persons requiring assistance will be accommodated as required by the Americans with Disabilities Act. Prior to addressing the Board, please go to the podium or unmute your device when prompted and state your name and address for the record. Chair Penserga opened public comments. No one came forth to speak. No virtual comments. Chair Penserga closed public comments. 10. Consent Agenda A. CRA Financial Report Period Ending May 31, 2023 B. Approval of CRA Board Meeting Minutes - May 9, 2023 C. Approval of the First Amendment to the Purchase and Development Agreement with 306 NE 6th Avenue LLC for the CRA Owned Property located at 211 E. Ocean Avenue Meeting Minutes CRA Board Meeting Boynton Beach, FL June 13, 2023 D. Approval of the Commercial Rent Reimbursement Grant Program in the Amount of $15,000 to Napi Dog Grooming, LLC located at 1406 N. Federal Highway E. Approval of the Commercial Property Improvement Grant Program in the Amount of $35,000 to Napi Dog Grooming LLC located at 1406 N. Federal Highway F. Approval of the Commercial Property Improvement Grant Program in the Amount of $27,250 to Ocean Palm Plaza LLC located at 1550 - 1600 N. Federal Highway Ms. Rossmell asked Chair Penserga if he wanted to open public comments on Consent Agenda items. He noted that is not typical practice, but he is ok with it. Public Comments: Chair Penserga opened public comments. No one came forth to speak. No virtual comments. Chair Penserga closed public comments. 11. Pulled Consent Agenda Items There were no Consent Agenda items pulled. Motion: Board Member Cruz moved to approve the Consent Agenda. Board Member Hay seconded the motion. The motion passed unanimously. 12. CRA Advisory Board A. Pending Assignments 1. Discussion and Consideration of Draft Scope to Amend the 2016 Community Redevelopment Plan Ms. Thuy Shutt, Executive Director, said there was no quorum present at the June 1, 2023, CRAB meeting. The three CRAB Board members opted to discuss the scope informally and concluded they would like more input since it is an important project. Ms. Shutt said there is currently five vacancies on CRAB. She recommended discussing the item under Item 13C or the CRA Board can table the item until the full CRAB Board is appointed and onboarded. Board Member Kelley asked why there was no quorum. Ms. Shutt the sitting Board members were aware they were still in their positions. She said many of the Board members simply could not attend, including the Board Member who would have made it a quorum, but she was sick that night. Board Member Kelley asked about the additional Board members who did not attend. Ms. Shutt said she does not know their personal situations or why they did not attend. She noted that four Board members' terms were up, and it was on the agenda for reappointment. She stated the City Clerk sent a reminder email to all Board members. Ms. Shutt stated that it is the CRA Board's discretion whether to table the item or not until the Meeting Minutes CRA Board Meeting Boynton Beach, FL June 13, 2023 CRAB reappointments occur. Chair Penserga concurs with staff's recommendation. Motion: Board Member Kelley moved to table Item 12A. Board Member Cruz seconded the motion. Public Comments: Chair Penserga opened public comments. Susan Oyer said they should be looking at voter qualification for Boards, so they are active citizens. She recommended a five-year residency with proof to sit on a Board. She said new residents should not be able to sit on a Board because they have no historical knowledge about City projects. She recommended looking at what Delray Beach does. She also said Board Chairs should be based on seniority. She suggested stronger enforcement of the three -absence rule. No virtual comments. Chair Penserga closed public comments. The motion passed unanimously. 13. Old Business A. Quarterly Progress Report from Pulte Home Company, LLC for the Cottage District Infill Housing Redevelopment Project Ms. Shutt introduced the item. Mr. Elliot Goldstein, Pulte Home Company, LLC, joined virtually. Mr. Goldstein provided an update on the project. He said they are in their 120 -day feasibility period and reviewed the development deadlines. He noted they are unable to submit the plat by the 60 days deadline and the purchaser is currently working on the applications. Ms. Shutt said they would like to meet with Pulte to work with the City on the issue. She said if they cannot figure out a solution, they will need to amend the Purchase and Development agreement. She said it is not the developer's fault and they will try to rectify it internally. Chair Penserga asked if it came to an amendment, would it be ready by the next Board meeting. Ms. Shutt replied yes. B. Consideration of Approval of System Audit Reports and Payments Release to Seabourn Cove Holdings LLC for the Properties known as Seabourn Cove — Phase I & Phase Ms. Vicki Hill, CRA Finance Director, introduced the item. She asked for approval of the Phase 1 reimbursement payment of $466,528. She noted the Phase II reimbursement payment is $227,351. Ms. Shutt briefly explained the TIF rebate. Meeting Minutes CRA Board Meeting Boynton Beach, FL June 13, 2023 Public Comments: Chair Penserga opened public comments. Susan Oyer spoke about the garbage from this project. No virtual comments. Chair Penserga closed public comments. Motion: Board Member Kelley moved to approve the payment release to Seabourn Cove Holdings LLC for the Properties known as Seabourn Cove in the amount of $$466,528 for Phase I and $227,351. for Phase II. Board Member Hay seconded the motion. The motion passed unanimously. C. Discussion and Consideration of Draft Scope to Amend the 2016 Community Redevelopment Plan (TABLED 05/09/2023) Motion: Board Member Hay moved to remove the item from the table. Vice Chair Turkin seconded the motion. The motion passed unanimously. Ms. Shutt introduced the item. She said they anticipate the process taking a year and include public input. She described the potential role of a consultant. She said the City Attorney noted they may want to host a joint workshop with the Board and the City Commission. Ms. Rossmell explained the benefits of the joint workshop. Board Member Kelley likes the idea of a joint meeting, but it is just a matter of timing. Ms. Shutt recommended said they would likely have to bump a joint workshop past their budget adoption. Chair Penserga does not want to replace a meeting because the work will pile up. He would support a joint workshop. Discussion ensued about scheduling. Board Member Hay does not see a need to bother with the size of the CRA district at this point since they are getting closer to sunsetting in 2044. He wondered about the gain. Ms. Shutt provided examples of projects and spoke about the CRA boundary. Board Member Hay would like to hear more input from CRAB and the public. He is in favor of a joint workshop. Vice Chair Turkin said he is in support of expediating a joint workshop. He does not want to kick the can down the road and wait for the input from CRAB, which has a lot of uncertainty. Meeting Minutes CRA Board Meeting Boynton Beach, FL June 13, 2023 Board Member Cruz said she is open to having a joint workshop. Consensus was reached to direct staff to identify a date for a joint workshop. Ms. Shutt anticipates the meeting would occur in September. D. Discussion and Consideration of the Options for the CRA -owned Property located at 401-411 E. Boynton Beach Boulevard Mr. Tim Tack, Assistant Director, introduced the item. He reviewed the options for site development including Invitation to Bid (ITB), Request for Proposals (RFP), Invitation to Negotiate (ITN), Letter of Interest (LOI), and Public -Private Partnerships (P3s). Board Member Kelley asked if the USPS has anyone interested in going the LOI route. Ms. Shutt said they do not have a development partner in this region. Ms. Shutt said they would like to cast a broader net if they go with an RFP, to include more entities outside of Florida. She said previous proposers could opt to submit another proposal. She stated they can entertain LOls or try more public advertising. Chair Penserga said his preference is an RFP with a pre -submission meeting. He does not want to repeat the mistakes of the past. They need to be clear what the USPS requires and asked for it to incorporated in an RFP. Board Member Kelley agreed about the RFP. Chair Penserga asked when the cone of silence would take effect. Ms. Rossmell said from RFP issuance until a decision is made. Board Member agreed with Chair Penserga and supports an RFP with a pre -submission meeting. Vice Chair Turkin said he is ok with the consensus. Board Member Cruz supports an RFP. Public Comments: Chair Penserga opened public comments. No one came forth to speak. No virtual comments. Chair Penserga closed public comments. Motion: Board Member Cruz moved to approve Option 1 as recommended by CRA staff. Board Member Kelley seconded the motion. The motion passed unanimously. E. Project Update on the Bride of Christ Daycare Center at NE 10th Avenue (TABLED 05/09/2023) Meeting Minutes CRA Board Meeting Boynton Beach, FL June 13, 2023 Motion: Board Member Hay moved to remove the item from the table. Board Member Kelley seconded the motion. The motion passed unanimously. Ms. Shutt provided background on the item. She said the church failed to commence construction by the extension deadline, but they are in process for site plan approval. She said staff received an email today from the church's representative asking or another extension until March 1, 2024 and will agree to amend the contract to remove CRA obligations to pay back development costs. She asked the Board to include a requirement that the church needs to secure financing by November 2023. She clarified they are requesting a March 1, 2024, deadline and not January 16, 2024. Board Member Cruz said she agrees to the amendment of the Purchase Agreement but does know not if she agrees with the March 2024 request. Chair Penserga asked about the March 1, 2024, extension request. Ms. Rossmell said they considered the City's process and timeline during negotiations. Ms. Shutt stated that securing financing is key. Vice Chair Turkin agreed with Board Member Cruz. Discussion ensued about the extension date request. Board Member Hay said he does not want to pay construction costs. He said the church must do their due diligence in meeting the deadlines or the reverter clause should become effective. Board Member Kelley asked for clarification on the proposed November 14, 2023, date for financing. Ms. Shutt explained why they are recommending that date for financing. Board Member Kelley said they need to see some major headway and cannot keep putting this off since a daycare is needed. She stated she is ok with the November financing deadline. Public Comments: Chair Penserga opened public comments. Claude Maxine, from the Bride of Christ church, said they will have financing before March 2024. He stated they are currently working with a bank. Ms. Shutt clarified that the financing needs to be secured by November 14, 2023. Mr. Maxine acknowledged the November financing deadline. Mr. Kyle Malleaux, project engineer, said they met with Planning and Zoning and are working through one last question with the Fire Department. Meeting Minutes CRA Board Meeting Boynton Beach, FL June 13, 2023 Board Member Hay asked if they are where they would like to be on the project to date. Mr. Malleaux said they are still discussing firetruck access with the Fire Department and are awaiting their confirmation on their proposed plan. He said they should then be resubmitting their site plan. Board Member Hay said he wants them to be successful, but they need to do their part. No virtual comments. Chair Penserga closed public comments. Board Member Kelley asked staff to make sure the Bride of Christ is sticking to the deadlines. Board Member Hay agreed and asked staff to ensure Bride of Christ agrees with the deadlines. Motion: Board Member Cruz moved to approve a contract amendment to the Purchase and Sale Agreement with Bride of Christ Board Tabernacle Church to provide a time extension until March 1, 2024, to commence development of the daycare facility and to delete the obligation of the CRA to reimburse the Bride of Christ Church for the improvement costs and development expenses should the Bride of Christ fail to meet the March 1, 2024, deadline. In addition, they must come to the CRA meeting on November 14, 2023, and prove financing and authorize the Board Chair to execute, subject to final legal review. Board Member Hay seconded the motion. The motion passed unanimously. 14. New Business A. Discussion and Consideration of Purchase and Sale Agreement for 413 W. Boynton Beach Boulevard Vice Chair Turkin experienced brief technical difficulties. Ms. Shutt introduced the item. She explained the Board options. Mr. James Bonfiglio, owner, described the property and the current tenants. Board Member Kelley asked about the initial outreach. She expressed concern about forcing tenants out. Ms. Shutt said they send out Letters of Interest to adjacent properties. She said they are not in the business of being a landlord. She said they offer grants for relation to for -profits but not to non -profits. She said one of their preferred terms is to have a vacant property. She noted that Mr. Bonfiglio can work to relocate his tenants, but they cannot fund relocation through the CRA. Mr. Bonfiglio said his non-profit tenant would like to remain in the building after they close but he would be willing to close a few months later to provide more time. Board Member Kelley reiterated her hesitancy. Meeting Minutes CRA Board Meeting Boynton Beach, FL June 13, 2023 Board Member Hay said he does not have a problem with tenant relocation but expressed concern about the offer of 27% over the appraised value. He said he would support this project. Vice Chair Turkin asked about the appraisal value. Ms. Shutt replied that it is appraised at $780,000 and the asking price is $990,000. Vice Chair Turkin said he does not like to pay over asking but recommended a counteroffer of under $900,000. He stated he would like to move forward with the purchase for the right price. Chair Penserga said they do not like to negotiate on the dais and recommended staff negotiate on their behalf. Vice Turkin said he preferred only 12-17% over appraisal. Board Member Cruz said this is not the best time to overpay for the property and it is not fiscally responsible. Chair Penserga said he agrees with Board Member Cruz. He said the 27% is too much and would like staff to negotiate the price. He prefers to give the non-profit enough time to transition and relocate. Mr. Bonfiglio said the non-profit may need until February or March 2024 to find a new location. Board Member Cruz said Holistic Suites recently opened and may be an affordable opportunity for the non-profit. Ms. Shutt clarified the Board direction and next steps with Mr. Bonfiglio. B. Discussion and Consideration of Participating in the National Community Stabilization Trust Program Ms. Shutt introduced the item. She said if the Board wants to participate that they provide specific parameters for the CRA Executive Director. Chair Penserga is very interested in participating. Ms. Vicki Curfman showed a video about the program. Chair Penserga asked about the cost. Ms. Shutt said there are no costs to participate. Board Member Cruz said she likes the idea. Ms. Shutt further explained the process and timeline for any interested properties. She recommended a cap of 10-15% over. Board Member Cruz would support up to 15% over for foreclosures. Vice Chair Turkin said it is great and he supports the 10-15% range. Chair Penserga supports 10-15% range. Meeting Minutes CRA Board Meeting Boynton Beach, FL June 13, 2023 Board Member Hay supports the range. He asked about the duration of the program. Ms. Shutt said they participated in 2013 so they have been around since then. Board Member Kelley asked how many properties are in their area and if anyone else in Boynton Beach has used this program. Ms. Shutt said she does not know who uses it locally but knows the County has. Board Member Kelley asked how Ms. Shutt would report back on interested properties. Ms. Shutt replied that they can provide quarterly reports based on remaining acquisition money. Public Comments: Chair Penserga opened public comments. No one came forth to speak. No virtual comments. Chair Penserga closed public comments. Motion: Board Member Hay motioned to approve participation in the National Community Stabilization Trust Program, with the parameter of no greater than 15% of the appraised value for the purchase price and regular quarterly reports, subject to legal review. Board Member Cruz seconded the motion. The motion passed unanimously. C. Discussion and Consideration of CRA Board Travel to the 2023 International Economic Development Council's Annual Conference Ms. Shutt introduced the item and provided conference details. She said the CRA can reimburse if the Board books their own travel. She asked the Board to contact Ms. Curfman with interest and coordination of travel. 15. CRA Projects in Progress A. Art Walk Event Recap B. CRA Economic & Business Development Grant Program Update C. Social Media & Print Marketing Update D. MLK Jr. Boulevard Corridor Mixed Use Project (d/b/a Heart of Boynton Village Apartments) Update 16. Future Agenda Items A. Consideration and Discussion of Fiscal Year 2023-2024 Project Fund Budget -July B. Semi -Annual Progress Report for the Development Agreement with Wells Landing Apartments, LLC d/b/a Heart of Boynton Shops - July C. Semi -Annual Progress Report for the Purchase and Development Agreement with Wells Landing Apartments, LLC d/b/a Heart of Boynton Village Apartments — July D. Discussion and Consideration of Interlocal Agreement between the City of Boynton Beach and the CRA in Preparation for Pirate Fest — July Meeting Minutes CRA Board Meeting Boynton Beach, FL June 13, 2023 17. Adjournment Motion: Board Member Kelley moved to adjourn. Board Member Cruz seconded the motion. The motion passed unanimously. There being no further business to discuss, the meeting was adjourned at 8:21 P.M. 'Tammy Stanz' ne, CM Deputy City lerk