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Minutes 1-18-24 Minutes of the Community Redevelopment Agency Board Meeting Held on Thursday, January 18, 2024 at 6:00 PM City Hall Chambers, 100 E. Ocean Avenue and GoToWebinar Online Meeting Present: Vice Chair Thomas Turkin Tim Tack, Acting Executive Director Board Member Woodrow Hay Kathryn Rossmell, Board Counsel Board Member Aimee Kelley Tammy Stanzione, Deputy City Clerk 1. Call to Order Vice Chair Turkin called the meeting to order at 6:00 P.M. 2. Invocation The Invocation was given by Board Member Hay. 3. Pledge of Allegiance Board Member Kelley led the Pledge of Allegiance to the Flag. 4. Roll Call Ms. Tammy Stanzione, Deputy City Clerk, called the roll. A quorum was present. Ms. Stanzione read into the record text from Board Member Cruz explaining why she could not attend the meeting. 5. Agenda Approval A. Additions, Deletions, Corrections to the Agenda Vice Chair Turkin stated that tonight's meeting will end at 7:00 PM due to scheduling constraints of Board Members. Vice Chair Turkin requested to reorder the agenda as follows: Section 12 will be after Section 14 New Business, move items 13A, B, and C to Consent Agenda, move 14 to after 11. Items 14A and 14C to be brought back by staff at the February meeting. Section 15 will not be heard. B. Adoption of Agenda Motion: Board Member Kelley moved to approve the agenda, as amended. Board Member Hay seconded the motion. The motion passed unanimously. 6. Legal Meeting Minutes CRA Board Meeting Boynton Beach, FL January 18, 2024 Kathryn Rossmell, Board Counsel, introduced her law partner Janice Rustin, who is here to assist the Board with the Circuit Agreement. 7. Informational Items and Disclosures by Board Members and CRA Staff: A. Disclosure of Conflicts, Contacts, and Relationships for Items Presented to the CRA Board on Agenda All Board Members stated that they had no disclosures. 8. Announcements and Awards There were none. 9. Public Comments The public comment section of the meeting is for public comment on items on the consent agenda or 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. Vice Chair Turkin opened public comments. Eliot Goldstein, Pulte Home Company, LLC gave an update to the Cottage District Infill Housing Redevelopment Project. He noted that the Project received zoning approval on First Reading at the City Commission Meeting on January 16, 2024, and the final approval will be next month. No virtual comments. Vice Chair Turkin closed public comments. 10. Consent Agenda A. CRA Financial Report Period Ending December 31, 2023 B. Approval of the CRA Board Meeting Minutes for December 12, 2023 C. Approval of the Commercial Property Improvement Grant Program in the Amount of$25,000 to Dimensional Health Care LLC located in Casa Costa at 458 N. Federal Highway, Unit 5 2 Meeting Minutes CRA Board Meeting Boynton Beach, FL January 18, 2024 D. Approval of the Commercial Rent Reimbursement Grant Program in the Amount of$19,176 to Dimensional Health Care LLC located in Casa Costa at 458 N. Federal Highway, Unit 5 13.A. Audited Financial Statements - FY 2022-2023, Fiscal Year Ended September 30, 2023. 13.B Third Quarterly Progress Report from Pulte Home Company, LLC for the Cottage District Infill Housing Redevelopment Project 13.0 Quarterly Progress Report from BB QOZ, LLC for the 115 N. Federal Highway Mixed-Use Project (aka The Pierce) Motion: Board Member Hay moved to approve the Consent Agenda. Board Member Kelley seconded the motion. The motion passed unanimously. 11. Pulled Consent Agenda Items There were no items pulled. 12. CRA Advisory Board A. Pending Assignments B. Reports on Pending Assignments There was Board consensus for the CRA Advisory Board to meet next month and review all current projects. 13. Old Business — Items 13 A, B and C were moved to Consent. D. Discussion and Consideration of Lease Amendment between Boynton Beach CRA and Cafe Barista, Inc. d/b/a Hurricane Alley Mr. Tim Tack, Acting Executive Director, said that the CRA purchased the properties located at 511, 515 & 529 East Ocean Avenue on December 16, 2021, and at the time of the closing, Cafe Barista, Inc. (d/b/a Hurricane Alley) was a tenant with an active lease which was assigned to the CRA. He stated that the lease is set to expire on February 29, 2024, and Kim Kelley, owner, has requested a one-year lease extension under the same terms and conditions of the current lease. He mentioned that due to the condition of the aging building and cost associated with ongoing maintenance the CRA Board may elect to increase the rent. He stated that a typical annual commercial rent increase would be between 3-5%. He commented that any additional extensions shall be subject to CRA Board approval for any unforeseen circumstances that may arise from current litigation. 3 Meeting Minutes CRA Board Meeting Boynton Beach, FL January 18, 2024 Kim Kelley, owner/operator of Hurricane Alley, said that she is asking for the same terms and conditions as the current lease. She noted that her rent is $7,300 and raising the rent would hurt the business. Board Member Hay said that he understands the cost of material has gone up, everything is going up, and that we also know that situation is out of the CRA's hands. He inquired about the quoted rent of $6,477.19 versus $7,300. Theresa Utterback, CRA Development Services Manager, commented that the base rent is $6,477.19, and on top of that, she has $1,000 added for her liquor license and $375 for the office upstairs. She said that all of those combined comes to $7,300. She noted that the increase would be on the base rent and not the $1,000 for her liquor license. Ms. Kelley stated that her business is worthless right now because she does not have a lease. She said that she is trying to save every penny she can, so when it is time to move she is able to do it. Commissioner Hay inquired if there were any high expenses for maintenance over the past year. Ms. Utterback replied the air conditioner had to be replaced, and every six months, a structural engineer monitors the structural issues. The cost is approximately $450. Ms. Kelley said that she takes care of anything that breaks and that she does not call the CRA. Board Member Hay said that he does not have a problem with keeping the agreement as is and extending it for one more year. Vice Chair Turkin said that his position is similar to his colleagues. Vice Chair Turkin opened public comments. No virtual comments. Vice Chair Turkin closed public comments. Motion: Board Member Kelley moved to approve and execute the one-year extension under the same terms and conditions. Board Member Hay seconded the motion. The motion passed unanimously. E. Status Update on Development Project with 306 NE 6th Avenue LLC for the CRA Owned Property located at 211 E. Ocean Avenue - TABLED 11/13/2023 4 Meeting Minutes CRA Board Meeting Boynton Beach, FL January 18, 2024 Motion: Board Member Kelley moved to remove Item 13E from the table. Board Member Hay seconded the motion. The motion passed unanimously. Board Member Kelley inquired if anything has changed in the past week. Mr. Tack said that on July 11, 2023, the CRA Board requested a project update on the restaurant project located at 211 E Ocean Avenue. He said that an email was sent to Mr. Barber and copying Mr. Mayo, requesting the status of the of the major site plan approval application. He stated that at the last CRA meeting, there was an understanding that they were to provide a financial commitment or proof of financing by tonight's meeting, which has not been provided. He noted that a default letter has been provided in case the Board elects to enforce the requirements per the agreement. He commented that he does not see a representative here to discuss this matter. He said that they have made several attempts, and sent several emails to communicate and stressed the importance of this and has not received any feedback. Board Member Kelley said that she was not on the Board at the time this project came up, but it was something they were all excited about and wanted to see happen. She noted that there has been no effort to work with CRA staff and her position is to move forward with the notice of default. Board Member Hay stated that this unfortunate, he had high hopes for this project. He said that he is ready to move forward with the default. Vice Chair Turkin state his position is similar, the CRA has granted multiple extensions and expressed how important it was for Mr. Barber be here tonight. Vice Chair Turkin stated that it is important for the public to know that there is fifteen days to cure the default. Vice Chair Turkin opened public comments. No virtual comments. Vice Chair Turkin closed public comments. Motion: Board Member Hay moved to direct Staff to go forward with the default on 211 E. Ocean Avenue. Board Member Kelly seconded the motion. The motion passed unanimously F. Consideration of Candidates for Selection of New Executive Director. Motion: 5 Meeting Minutes CRA Board Meeting Boynton Beach, FL January 18, 2024 Board Member Kelley moved to table Item 13F until the next meeting. Board Member Hay seconded the motion. The motion passed unanimously. G. Discussion and Consideration of a Contract with Circuit Transit Inc. for the BBCRA Pilot Ride Share Program Mr. Tack gave an overview of the Contract with Circuit Transit Inc. for the CRA Pilot Ride Share Program. He commented that at the November Board meeting, the Board gave Staff permission to move forward with negotiations with Circuit. Board Member Hay inquired, if needed, how long would it take to get another vehicle. Mr. Bagley, Circuit Transit Inc., replied the time it would take to add an additional vehicle, depends on the type of vehicle. He commented that if it was a sedan, it would be a few weeks, if it was a Gem vehicle, it has a longer order time. He stated that the sedans are going to be the better fit and offer the most flexibility. Board Member Hay asked who is responsible for the vehicles when they are parked overnight. Mr. Tack said that the CRA will be responsible, and the CRA is working with the City to provide four parking spaces in the current City parking lot on the corner of East Boynton Beach Boulevard and Seacrest Boulevard. He stated that Circuit would be responsible for liability since the vehicles and equipment belong to them. Board Member Hay inquired about special events and who is responsible for paying the overtime. Mr. Tack stated that the way the contract is written, it would not be considered overtime, there would be additional staffing and there is a rate within the contract that would provide the hourly rate structure. Vice Chair Turkin opened public comments. No virtual comments. Vice Chair Turkin closed public comments. Motion: Board Member Hay moved to approve the agreement with Circuit Transit, Inc. for the CRA Pilot Ride Share Program as presented and authorize the Board Chair to execute, subject to final legal review. Board Member Kelley seconded the motion with discussion. Board Member Kelley inquired what happens at the end of the six-month agreement. 6 Meeting Minutes CRA Board Meeting Boynton Beach, FL January 18, 2024 Janice Rustin, Counsel, replied that at the end of the six months, the contract will automatically be renewed for another six months. 14. New Business A. Discussion and Consideration of a Request for Proposals for Property Appraisal Services (Moved to February) B. Discussion and Consideration of Purchase of 1111 S. Federal Highway Mr. Tack gave an overview of the property located at 1111 S. Federal Highway. He said that the CRA Staff actively pursues the purchase of properties within the CRA District in order to spur redevelopment opportunities in accordance with the CRA Plan. He stated that 1111 S. Federal is a vacant lot, approximately .35 acres, which is currently zoned as C3 Community Commercial. He stated that the future development would be a potential mixed use under the Mixed Use Medium Future Land Use Classification. He commented that the development potential would allow mixed use development with a maximum density of 40 to 50 units per acre, and maximum height of 65 to 75 feet. Board Member Kelley stated that this is prime property with Federal Highway access and proximity to other properties owed by the CRA, and this an opportunity to capture property that has potential. Board Member Hay stated that it is a good deal and he is in favor of the purchase. Vice Mayor Turkin stated that he agrees with his colleagues this is a great opportunity. Vice Chair Turkin opened public comments. Blair Lee, the Broker for the property, stated that he had conferred with his client who owns the property at 1111 S. Federal Highway. He commented that they discussed a price of somewhere between the list price and $850,000. He noted that the purchase price came in at $891,000. He stated that the owner has continued to get the approvals on the square footage with a site plan, and the owner would like the Board to consider paying the appraised value. No virtual comments. Vice Chair Turkin closed public comment. Motion: Board Member Kelley moved to approve the purchase of the vacant lot located at 1111 S. Federal Highway in the amount of$850,000 and authorize the Board Chair to execute a Purchase and Sale agreement subject to final legal review. Board Member Hay seconded the motion with discussion. The motion passed unanimously. Board Member Hay inquired if there was anything currently planned for the site. 7 Meeting Minutes CRA Board Meeting Boynton Beach, FL January 18, 2024 Mr. Tack replied that there is nothing currently planned for that site. Vice Chair Turkin opened public comment. No one came forth. No virtual comments. Vice Chair Turkin closed public comment. Motion: Board Member Kelley amended the motion and moved to approve the purchase of the vacant lot located at 1111 S. Federal Highway and direct staff to negotiate with seller to determine appropriate sales price and bring back to the Board for further direction. Board Member Hay seconded the motion. The motion passed unanimously. C. Discussion and Consideration of Purchase of 703 S. Federal Highway (Moved to February) D. Discussion and Consideration of Purchase of Lot 348-350 NW 11th Avenue Mr. Tack gave an overview of Lot 348-350 NW 11th Avenue, the property is approximately .175 acres and zoned R-2 Duplex. He said that the future development would be mixed use under the mixed-use future land use classification. He stated that the development potential would be medium density residential with a maximum density of up to 11 units per acre and a maximum height of 45 feet. He commented that the CRA has successfully, in the past, partnered with Habitat for Humanity and the Boynton Beach Faith-Based Community Development Corporation using such infill lots to fulfill the mission of providing affordable housing. He commented that the property is currently listed at $174,900, and the owner would accept $165,000 which is the appraised value of the property. Board Member Hay stated that this was a good deal and to move forward with the purchase of Lot 348-350 NW 11th Avenue based on Staff recommendations. Board Member Kelley stated that she agreed that this is fair and that the CRA is getting a good deal for future partnering with either the Faith Based CBC or Habitat. Vice Chair Turkin opened public comments. Fleur Life Heaton, stated that the property is ready to build and that the seller has agreed to the purchase price from the CRA. No virtual comments. Vice Chair Turkin closed public comment. Motion: Board Member Hay moved for Staff to proceed with the purchase of Lot 348-350 NW 11th 8 Meeting Minutes CRA Board Meeting Boynton Beach, FL January 18, 2024 Avenue consistent with the terms in the Staff Report and to bring back for final approval from the Board. Board Member Kelley seconded the motion. The motion passed unanimously. 15. CRA Projects in Progress A. Social Media & Print Marketing Update B. CRA Economic & Business Development Grant Program Update C. MLK Jr. Boulevard Corridor Mixed Use Project (d/b/a Heart of Boynton Village Apartments) Update - January 2024 16. Future Agenda Items A. Update on Discussion and Consideration of the Responses to the Second RFP/RFQ for the CRA-owned Property located at 401-411 E. Boynton Beach Boulevard - February B. Discussion and Consideration of First Amendment to the Interlocal Agreement (ILA) for Technical Support Services with the City of Boynton Beach C. Discussion and Consideration of an Interlocal Agreement (ILA) between the CRA and the City of Boynton Beach regarding Contract with Circuit Transit Inc. for the BBCRA Pilot Ride Share Program 17. Adjournment Motion Board Member Kelley moved to adjourn. Board Member Hay seconded the motion. The motion passed unanimously. There being no further business to discuss, the meeting was adjourned at 7:04 P.M. Tammy Stan lone, M6./ Deputy City Clerk 9