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Minutes 12-12-23 Minutes of the Community Redevelopment Agency Board Meeting Held on Tuesday, December 12, 2023 at 6:00 PM City Hall Chambers, 100 E. Ocean Avenue and GoToWebinar Online Meeting Present: Chair Ty Penserga Tim Tack, Acting Executive Director Vice Chair Thomas Turkin Kathryn Rossmell, Board Counsel Board Member Angela Cruz Tammy Stanzione, Deputy City Clerk Board Member Woodrow Hay Board Member Aimee Kelley 1. Call to Order Chair Penserga called the meeting to order at 6:01 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. 5. Agenda Approval A. Additions, Deletions, Corrections to the Agenda Board Member Cruz requested to hear a short update on Item 15A. Vice Chair Turkin asked for consensus for the CRA to support the Unity Project. Board Chair Penserga said he is unfamiliar with the Unity Project and does not know if it is under the purview of the CRA. Ms. Rossmell said she is unfamiliar with the scope but, CRA's are not empowered to provide funds for causes. It must be a redevelopment effort. Vice Chair Turkin stated he will share additional information with staff offline. B. Adoption of Agenda Motion: Board Member Cruz moved to approve the agenda, as amended. Board Member Kelley seconded the motion. The motion passed unanimously. 6. Legal Meeting Minutes CRA Board Meeting Boynton Beach, FL December 12, 2023 11. CRA Advisory Board A. Pending Assignments B. Reports on Pending Assignments Mr. Tack said that the December meeting was cancelled due to lack of quorum. He noted that one member withdrew and may be reappointed at the next City Commission meeting. He said that he is meeting with each member individually to conduct a CRA 101 session. 12. Pulled Consent Agenda Items There were no items. 13. Old Business A. Discussion and Consideration of the Responses to the Second RFP/RFQ for the CRA- owned Property located at 401-411 E. Boynton Beach Boulevard Mr. Tack introduced the item and provided background. He noted, as of September 26, 2023, the CRA received two proposals. He noted that the CRA staff completed review of each of the proposals and both entities are in attendance for presentations. Mr. StevePotaki, DMR Construction Services, Inc., introduced himself and additional project team members. He reviewed the following: Our Boynton Beach Post Office; DMR Construction; About Us; Project Highlight Gulfstream Views Briny Breezes, FL; Landlord Proposal; Estimated and Expense. Mr. Rodney Locke reviewed the Post Office Project Details Challenges. Mr. Potaki continued by reviewing the following: US Post Office — Site Plan; and Staging Plan & Schedule. Mr. Brian Herbert, Gallo Herbert Architects, reviewed the following: Alternate Building Placement; and Community Design. Mr. Potaki finished the presentation by reviewing their financing structure. Chair Penserga invited the next applicant to present. Mr. ToddConley, Maple Tree Investments, reviewed the following: Maple Tree Investments; Greensburg, KY USPS Facility; Clarksburg, WV USPS Facility; Lewisville, NC USPS Facility; USPS Boynton Beach Downtown Station Project; Design and Development Team; Site Plan; and Project Estimated Budget. Board Member Kelley asked if there is a representative from the USPS. Ms. Curfman confirmed Mr. Richard Hancock is online. Board Member asked to hear feedback from Mr. Hancock. Meeting Minutes CRA Board Meeting Boynton Beach, FL December 12, 2023 Mr. Hancock said that he is familiar with the two proposals. He said that the two proposals are not currently able to be compared apples to apples. Additionally, he said that they would need to work more with the first proposer on the cost of maintaining and cost of handling a USPS facility. He said that one concern is price point. He noted that the building is standalone so there is no management costs. He said that they have a proposed plan, and the alleyway is crucial. He said that they would like to see both proposals utilize the alleyway. He said that their preference to keep the truck traffic separate. He noted that they are happy to have two strong candidates and it is too early to select one. Board Member Kelley said that one of her concerns is the differences between the two proposals. She wanted to hear if both options are viable and if the rent is close to what the Post Office pays. Mr. Hancock said that they are interested in both proposals but reiterated that they are not equal. He said they need to look at the passthroughs, land acquisition prices, and taxes. He said that they would need to drill down more. Board Member Hay acknowledged Mr. Hancock's concern and said he shares it as well. He said that his bigger concern is the alley. He asked Mr. Hancock if they had use for a tractor trailer. Mr. Hancock replied no, they would never need to use a tractor trailer for a facility this size. Board Member Hay asked Mr. Tack to review the bullet points on the lease attachments. Mr. Tack referenced the lease attachments and the comparison between the two applicants. Board Member Hay asked about the evaluation criteria. Mr. Tack summarized the four evaluation criteria, and each applicant addressed the evaluation criteria. Vice Chair Turkin said Maple Tree is the obvious option but what is presented is not the end all. He said they could negotiate the purchase price to drop the cost. He said he prefers Maple Tree, Inc. Board Member Cruz said all her questions have been answered. She appreciated that the full purchase price. She asked the Post Office what they can afford to pay per square foot. Mr. Hancock said what they are paying now does not impact new construction. He said that the purchase price of the land is significant to the overall project costs. He said that the full asking price is not their goal. He said that they would push back significantly on the proposed expenses by DMR Construction Services. He further explained their process. Board Member Cruz asked who pays the property taxes. Mr. Hancok said that the land owner would be the taxes, but the Post Office would reimburse. Chair Penserga summarized the position of each Board Member. Board Member Kelley asked DMR Construction what their position in following what the USPS desires versus the alternative design they proposed. Mr. Potaki said they are willing to make it work. Meeting Minutes CRA Board Meeting Boynton Beach, FL December 12, 2023 Board Member Kelley asked about waivers for impact fees. Mr. Tack said that he does not have an idea what that would be. Ms. Rossmell said that the CRA is not empowered to waive those on behalf of the City. Board Member Kelley asked DMR Construction about the anticipated CAM fees. Mr. Potaki said that it will be whatever the Post Office requires, and they were just doing their due diligence. He said that it was based on quotes from local maintenance companies. Chair Penserga asked Board Member Kelley about her position. Board Member Kelley stated that she is not being pulled in one direction. She said that she favors Maple Tree's experience but likes the locally established business who has worked in their area like DMR Construction. She noted that USPS may be better suited with Maple Tree. She said she is still pondering. Chair Penserga said that Vice Chair Turkin and Board Member Kelley are both leaning towards Maple Tree. Board Member Hay stated that if he had to decide tonight, it would be Maple Tree. He said that he has concerns but Maple Tree would be the better choice. Chair Penserga opened public comment. No one came forth to speak. No virtual comments. Chair Penserga closed public comment. Motion: Vice Chair Turkin moved to authorize CRA staff and legal counsel to begin negotiations with Maple Tree Investments, LLC, and waive any inconsistencies or irregularities with the submittal, and contingent upon financing information. Board Member Hay seconded the motion. Board Member Cruz asked if it would be fair to permit both applicants to provide an updated purchase price. Board Chair Penserga said it feels like they are beyond that point with a majority favoring one applicant. The motion passed unanimously. B. Discussion and Consideration of Extension of Lease with the USPS at 217 N. Seacrest Boulevard Mr. Tack introduced the item and provided background. The USPS has submitted a request to extend the lease to January 31, 2025. He noted that the CRA Board may elect to increase the rent. He stated that the current rent is $180,125 annually. Board Member Cruz asked if they recently purchased a new air conditioning unit. Mr. Tack stated that they have expended close to $60K this year since they owned the property, which included studies and a new air conditioning unit. Board Member Cruz said she is in favor of a rent increase. Vice Chair Turkin and Board Member Hay agree with a 5% increase. Meeting Minutes CRA Board Meeting Boynton Beach, FL December 12, 2023 Board Member Kelley said she was leaning towards 3% but could support a 5% increase. She asked if anything came out of the study that would be concerning within the next year. Mr. Tack said it is hard to anticipate. Chair Penserga open public comment. No one came forth to speak. No virtual comments. Chair Penserga closed public comment. Motion: Board Member Kelley moved to approve a one-year extension under the current terms and conditions and a 5% increase in rent. Board Member Cruz seconded the motion. The motion passed unanimously. C. Discussion and Consideration of the First Amendment to the Interlocal Agreement between the City and CRA for the Historic Woman's Club of Boynton Beach located at 1010 S. Federal Highway Mr. Tack introduced the item and provided background. He noted they are requesting to extend the expiration date from February 11, 2024, to September 30, 2024. Chair Penserga open public comment. No one came forth to speak. No virtual comments. Chair Penserga closed public comment. Motion: Board Member Cruz moved to approve the Amendment to extend the termination date of the Interlocal Agreement between the City and the CRA for the funding of certain improvements, operations, and maintenance for the Historic Woman's Club of Boynton Beach. Board Member Hay seconded the motion. The motion passed unanimously. D. Discussion and Consideration of the First Amendment to the Interlocal Agreement between the City and CRA for the CRA District Streetscape/Lighting Improvements Mr. Tack introduced the item and provided background. Chair Penserga open public comment. No one came forth to speak. No virtual comments. Chair Penserga closed public comment. Motion: Board Member Cruz moved to approve the First Amendment to the Interlocal Agreement to extend the termination date of the CRA Streetscape/Lighting Improvements and authorize the Board Chair to executive subject to final legal review. Board Member Kelley seconded the motion. The motion passed unanimously. E. Update on Recruitment of New Executive Director Meeting Minutes CRA Board Meeting Boynton Beach, FL December 12, 2023 Mr. Tack introduced the item and provided background. He noted that they have currently received 27 resumes as of December 5, 2023. He said staff is recommending closing the application deadline on Friday, December 15, 2023. Chair Penserga said he recalls the Board being split between 30 and 60 days at the previous meeting. Chair Penserga said how many meet the minimum qualifications. Mr. Tack replied that 12 applicants meet the minimum qualifications. Board Member Kelley stated that she would be open to keeping it open but starting the review process, similar to the City Attorney search. Chair Penserga said that he would prefer the begin the process simultaneously for all applicants. Board Member Hay stated that 12 is a good number to start the process. He does not believe they need to keep it open for another 30 days. Mr. Tack clarified tha+ the 12 applicants meet the minimum qualifications of the position, as advertised. Board Member Hay said that he felt strongly about 60 days during the prior discussion. He said he will stick with his original thought to extend the deadline for another 30 days. Vice Chair Turkin said that he is indifferent. Board Member Cruz said that it is good to start the review process and they can open it again, if needed. Board Member Kelley suggested closing the posting before the next meeting so they can review the packet of resumes at their January meeting. Chair Penserga recommended closing it by the end of the calendar year. Mr. Tack said they could do that and have binders ready for their January 18, 2024, CRA meeting. There was consensus. F. Discussion and Consideration of Process for Selection of New Executive Director Mr. Tack introduced the item and provided background. He reviewed the process. Board Member Cruz asked if they need to interview candidates before January 18, 2024. Mr. Tack clarified they would be directing staff at the January 18, 2024, meeting which candidates, if any, to interview. Vice Chair Turkin said that he would like the identified candidates to shadow the CRA staff and to receive feedback from staff. He said it is a small department and they need to be able to successfully lead the tight-knit team. Meeting Minutes CRA Board Meeting Boynton Beach, FL December 12, 2023 Chair Penserga said one option is to host a mixer with CRA Board, CRA staff and each candidate. Ms. Rossmell said they would need to notice it for Sunshine compliance. Discussion ensued about Vice Turkin's suggestion. Board Member Hay said that he does not see a social component making a difference or not. He said he does not have confidence in the process because what was done in the past. Board Member Kelley stated that she comfortable with staff's recommendations. Board Member Cruz said a mixer makes things complicated. Chair Penserga open public comment. Mark Karageorge said he appreciates Board Member Hay's comments. He said it is a position that is critical to the success of the CRA. He said 2-3 candidates could meet with the CRA staff and provide input. He said it will be tough to find someone who will meet all the criteria. They want the most qualified person. He said previous Boards made decisions that should not have been made. He said vetting is critical. No virtual comments. Chair Penserga closed public comment. Motion: Board Member Cruz moved to direct staff to proceed of recruiting a New Executive Director as provided. Vice Chair Turkin seconded the motion. The motion passed unanimously. 14. New Business A. Discussion and Consideration of Purchase of 417, 445 and 521 N Federal Highway, 520 and 522 NE 5th Avenue, and 511 and 522 NE 4th Street (aka the Hall Properties) Mr. Tack introduced the item and provided background. He referenced the location map and reviewed the two options that were provided in the updated offer. He noted there are a total of 7 parcels. Board Member Cruz asked about the tenants in the spaces. Mr. Tack said the representative would need to be asked. Board Member Cruz said that she is not a fan of displacing local businesses. She said she does not like the 22% over the appraised value. She does not want to displace the golf cart business. She stated that she is not in favor of moving forward with this today. Vice Chair Turkin said that he is open to some of the parcels, but he does not want someone else to purchase these properties and could be developed with greater density. He is open to something but wants to hear from the rest of the Board. Meeting Minutes CRA Board Meeting Boynton Beach, FL December 12, 2023 Board Member Hay said the properties are not contiguous, but property is a high commodity item. He said that he does not support going that high above appraisal value. He said if he needs to make a choice, he would go with the property north of Tom Kaiser. He asked if they would be willing to break the properties up. Mr. Tack said that would need to be a further discussion. Board Member Hay said that he is in favor of giving CRA staff the leeway to negotiate the properties north of the park. Board Member Kelley said that she struggles with shutting down local businesses. She spoke about the properties north of the park. She said that she would be interested to see if the sellers would be amenable to splitting up the properties. She is not in favor of purchasing them all. Mr. Tack stated that they can see if the sellers would be amenable to selling some of the properties. Chair Penserga would feel more comfortable knowing the plan first. There was consensus to direct CRA staff to explore other combinations with the seller. Chair Penserga open public comment. No one came forth to speak. No virtual comments. Chair Penserga closed public comment. 15. CRA Projects in Progress A. 2023 Holiday Boat Parade Recap Ms. Coppin, Business Development and Promotions Manager, provided a recap of the 2023 Holiday Board Parade. She noted they judged 34 boats, and the winners will be announced on January 10, 2024. Board Member Hay said it was a beautiful event and it was a job well done. The CRA Board agreed and thanked staff for the event. B. Social Media & Print Marketing Update C. CRA Economic & Business Development Grant Program Update D. MLK Jr. Boulevard Corridor Mixed Use Project (d/b/a Heart of Boynton Village Apartments) Update — December 2023 16. Future Agenda Items A. 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)- January 2024 B. Discussion and Consideration of a Draft Request for Proposals regarding Property Appraisers - January 2024 Meeting Minutes CRA Board Meeting Boynton Beach, FL December 12, 2023 C. Update on Amending the 2016 Community Redevelopment Plan - January 2024 D. Discussion and Consideration of First Amendment to the Interlocal Agreement (ILA) for Technical Support Services with the City of Boynton Beach - January 2024 E. Discussion and Consideration of a Contract regarding Ride Sharing Program - January 2024 F. Discussion and Consideration of an Interlocal Agreement (ILA) with City of Boynton Beach regarding Ride Sharing Program - January 2024 17. Adjournment Chair Penserga said the March/April and November/December meetings are close in dates and they will discuss in future meetings. Board Member Cruz moved to adjourn. Board Member Hay seconded the motion. The motion passed unanimously. There being no furthe, business to discuss, the meeting was adjourned at 8:14 P.M. Tammy Sta ione, CM Deputy Cit Clerk