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Minutes 4-09-24 Minutes of the Community Redevelopment Agency Board Meeting Held on Tuesday, April 9, 2024, 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 Aimee Kelley Kathryn Rossmell, Board Counsel Board Member Angela Cruz Tara Duhy, Board Counsel Board Member Woodrow Hay Tammy Stanzione, Deputy City Clerk Board Member Thomas Turkin 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 Cruz 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 Item 16A. B. Adoption of Agenda Motion: Board Member Hay moved to approve the agenda, as amended. Vice Chair Kelley seconded the motion. The motion passed unanimously. 6. Legal Ms. Rossmell had no legal updates. 7. Informational Items and Disclosures by Board Members and CRA Staff: Meeting Minutes CRA Board Meeting Boynton Beach, FL April 9, 2024 A. Disclosure of Conflicts, Contacts, and Relationships for Items Presented to the CRA Board on Agenda Board Member Turkin disclosed that he received emails regarding items 12A and 12B and spoke to the principal and Bonnie Miskel regarding item 15A. Board Member Hay disclosed that he spoke with Danny regarding item 15A. Vice Chair Kelley disclosed that she spoke to Christina Romelus regarding item 12 and the Hyperion representatives regarding items 15A and received emails as well. Board Member Cruz disclosed that she spoke to residents and applicants regarding items 12A and 12B. She also received text messages. She spoke to Bonnie Miskel regarding item 15A. Mayor Penserga disclosed that he received two emails regarding item 15A and spoke to the representatives. Additionally, he spoke to representatives regarding items 12A and 12B. 8. Informational Only A. Quarterly Progress Report #4 from Pulte Home Company, LLC for the Cottage District Infill Housing Redevelopment Project - January 2024 - March 2024 Mr. Eliot Goldstein, Director of Land Acquisition for Pulte Home Company, LLC, said that they are eager to move this project closer to a reality. He noted their master plan, site plan, and zoning approvals were obtained on February 6, 2024, and the restrictive covenant was approved on February 13, 2024, and the plat and land development was submitted on February 27, 2024. They are awaiting staff comments, along with the draft developer's agreement. He thanked Mr. Tim Tack for facilitating a meeting to discuss building permit sand the land development permits. Board Member Hack asked about the timeline. Mr. Goldstein said that they are prepared to close as soon as they receive plat approval and the developer's agreement. 9. Announcements and Awards A. Boynton Beach CRA FY 2022-2023 Financial & Annual Report Mr. Tim Tack, Acting Executive Director, provided an update on the CRA FY 2022-2023 Financial & Annual Report. An electronic copy is located online. B. Announcement for Rock the Plaza at Ocean Palm Meeting Minutes CRA Board Meeting Boynton Beach, FL April 9, 2024 Ms. Mercedes Coppin, Business Develop and Promotions Manager, announced Rock the Plaza will be held on April 27th at Ocean Palm Plaza, featuring live music by Solid Brass. 10. 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. Chair Penserga opened public comments. Susan Oyer asked about the status on city beautification. She reached out to the City Manager and has not heard back. She also asked about the status on the NW 11th Avenue blue lights. She said she reached out to the cruiser representatives about advertising, but she did not receive a response. She inquired about the urban orchard at Sara Sims. She mentioned the toxic chemicals going into their waterways from the cypress mulch. She recommended pine bark mulch, which also costs left. Cindy Falco deCorrado said three more people were shot today in District II. She mentioned the art on East Ocean Avenue and thanked them for removing the plastic monstrosity. She said the art is making harsh statements. She stated that there are still lights out on Boynton Beach Boulevard and it looks scary. Martin Klauber thanked Board Member Turkin for the community meeting he held with staff and Police Chief. He acknowledged the replacement of the royal palms and ballyards. He also thanked the CRA for posting the no fishing signage on the pier. No virtual comments. Chair Penserga closed public comments. 11. Consent Agenda A. CRA Financial Report Period Ending March 31, 2024 B. Approval of the Increase in Funding to the Commercial Property Improvement Grant Program in the Amount of$2,650 for Eligible Design Fees to Nate & Maddie LLC d/b/a ROK Prime Korean BBQ located in Sunshine Square at 1729 S. Federal Highway Motion: Meeting Minutes CRA Board Meeting Boynton Beach, FL April 9, 2024 Board Member Cruz moved to approve the Consent Agenda. Vice Chair Kelley seconded the motion. The motion passed unanimously. 12. Pulled Consent Agenda Items A. Approval of the Commercial Property Improvement Grant Program in the Amount of $26,200 to PolitiCALM LLC located in Heart of Boynton Shops at 139 NE 10th Avenue, Unit 106 - TABLED 03/21/2024 (REVISED 04/05/2024) B. Approval of the Increase in Funding to the Commercial Property Improvement Grant Program in the Amount of$2,650 for Eligible Design Fees to Nate & Maddie LLC d/b/a ROK Prime Korean BBQ located in Sunshine Square at 1729 S. Federal Highway Approval of the Commercial Rent Reimbursement Grant Program in the Amount of $11,550 to PolitiCALM LLC located in Heart of Boynton Shops at 139 NE 10th Avenue, Unit 106 - TABLED 03/21/2024 (REVISED 04/05/2024) Motion: Board Member Hay moved to remove item 12A from the table. Board Member Cruz seconded the motion. The motion passed unanimously. Motion: Board Member Hay moved to remove item 12B from the table. Vice Chair Kelley seconded the motion. The motion passed unanimously. Mr. Tack stated that the CRA has received a complete property improvement and rent reimbursement grant application from PolitiCALM LLC located in Heart of Boynton Shops at 139 NE 10th Avenue. He said the applicants falls under a Tier 2 business and seeking reimbursement for a complete interior buildout. If approved the applicant is eligible to receive the maximum grant of $25,000 for property improvements. If approved, PolitiCALM LLC would be reimbursed for rent for a total grant amount of $11,550 for its first year of business. Ms. Rossmell provided an overview of the attached memo. Chair Penserga opened public comments. Ms. Colleen Paul said that she called Ms. Romelus when she first moved to the city. She said that Ms. Romelus helps people and has always been a supporter of small businesses. She stated that Ms. Romelus has met all the application guidelines. She noted that voting against this project sends a message to minority-owned small businesses. She asked the CRA to vote in favor. Ms. Cindy Falco deCorredo said that Ms. Romelus has an active investigation against her. She stated that Ms. Romelus already has an office, and it is political. She said that if they agree to this, they are participating in a crime. She mentioned that it is deceitful and asked them to vote no. Meeting Minutes CRA Board Meeting Boynton Beach, FL April 9, 2024 Ms. Susan Oyer stated that this has not received enough scrutiny. She asked how many jobs will be created by this. She recommended that other businesses that would be a better use of money. She stated that this should not involve politics in any way and suggested this is setting a dangerous precedent. She asked that the Board to vote against. Pastor Richard Dames said that he supports the grant proposal. He noted that if the applicant met all criteria, then all concerns should be irrelevant. He encouraged the city to support more minority-owned businesses, especially by black women. He asked if there are other entities within the CRA that received funds connected to political involvement. He noted that the right thing to do is approve the application. Barbara Ready expressed a concern about the other candidates wanting to open other political offices and the ethics. No virtual comments. Chair Penserga closed public comments. Mayor Penserga welcomed the applicant to present and respond to comments. Ms. Christina Romelus stated that she served the City from 2016-2022 and is proud of her legacy. She said that she has been in this application process the last 7 months. She acknowledged her virtual office and said that she wants to open a physical office in Boynton Beach. She further described her business, which supports nonprofits and small businesses. She stated that her office will not participate in the campaign electoral process. She acknowledged the public comments. She noted that her work is mainly outside of Palm Beach County. She said that she has met the criteria and thanked the CRA for being fair and impartial. Board Member Hay said that he heard nothing which would change his mind from last month. Vice Chair Kelley stated that she appreciates Ms. Romelus' service to the City, but she has concerns with grant funding to be used for a government affairs business with no benefit to the residents. She does not feel that it is an appropriate use for this grant funding. Board Member Cruz said that if the application is denied then they should set parameters in their CRA policies. She noted that it is an eligible business. She stated that the interior updates would remain with the building and benefit the CRA. She mentioned that she shares similar concerns that it would be used as a campaign office. Board Member Cruz offered conditions of approval. Meeting Minutes CRA Board Meeting Boynton Beach, FL April 9, 2024 Ms. Romelus clarified that she will serve Boynton Beach residents and businesses but will not lobby in front the City Commission and CRA. She accepted the conditions offered by Board Member Cruz. Board Member Turkin liked the conditions of approval but asked about enforcement. He suggested that it does fit within the Tier 2 businesses. He expressed concern about accountability. He said that this application should have been ineligible. He stated that he cannot use taxpayers' money for a business that they cannot hold accountable. Board Member Cruz agreed with the recommendation for accountability. She said Ms. Romelus mentioned in their conversation that she would try to help local businesses secure grant funding. Mayor Penserga asked counsel about enforcement. Ms. Rossmell said the question of enforcement would be better directed at staff. She provided an example of enforcement for another scenario. She added that the CRA can terminate a grant at any point. Mr. Tack confirmed that they could develop definitive requirements for accountability. He noted that the buildout is easy to track due to reimbursements. Board Member Hay stated they seem to be making up rules on the fly. He reiterated that the applicant has met all the qualifications. He noted that they have approved other businesses before. He expressed discomfort about developing conditions tonight. Ms. Rossmell stated that all questions presented to her have been addressed. Ms. Romelus addressed the comments about enforcement. She reiterated that she agrees to the conditions of approval. Motion: Board Member Hay moved to approve Item 12A, with conditions. Board Member Cruz seconded the motion. The motion passed 3-2. Board Member Turkin and Vice Chair Kelley dissented. Motion: Board Member Hay moved to approve Item 12B, with conditions. Board Member Cruz seconded the motion. The motion passed 3-2. Board Member Turkin and Vice Chair Kelley dissented. Meeting Minutes CRA Board Meeting Boynton Beach, FL April 9, 2024 13. CRA Advisory Board A. Pending Assignments - New Assignments from the CRA Board Assigned at the February 13, 2024, CRA Monthly Board Meeting Mr. Tack stated that there were no updates. He confirmed the CRA Advisory Board met and will report at the May meeting. 14. Old Business A. Consideration of Approval of 500 Ocean Performance Audit for Year Ending December 31 , 2023, for Compliance with the Direct Incentive Funding Agreement Mr. Tack introduced the item and provided background. He noted that the Performance Audit is in compliance with the terms of the agreement, if approved, the CRA will be issuing payment in the amount of $349,319 for FY24. Motion: Board Member Hay moved to approve the Performance Audit as submitted and authorize release of DIFA payment number five (5) in the amount of$394,319 to Avanti Residential- 500 Ocean TIC I LLC. Board Member Cruz seconded the motion. The motion passed unanimously. B. Discussion and Consideration of a Waiver for Payment in Accordance with 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. The First Amendment to the ILA was entered into on February 6, 2024, (City Resolution R24-021 , see Attachment II) extending the termination date from February 11 , 2024, to September 30, 2024. If the CRA Board does not wish to approve a Second Amendment to the ILA for the requested waivers, the City will not be eligible to collect the remaining balances for FY21-22 ($15,897.37) and FY22-23 ($193,849.00) for a total of $209,746.37. Chair Penserga opened public comment. No one came forth to speak. No virtual comments. Chair Penserga closed public comment. Motion: Vice Chair Kelley moved to approve Item 14B. Board Member seconded the motion. The motion passed unanimously. Meeting Minutes CRA Board Meeting Boynton Beach, FL April 9, 2024 C. Update on Status of Contract Negotiations with Candidate for New Executive Director Ms. Rossmell introduced the item and provided background. She said they hope to provide an update next month. 15. New Business A. Discussion and Consideration of Request of Developer for TIF Funding for the Ocean One Project Ms. Tara Duhy, Board Counsel, introduced the item, briefly reviewed the order of how the item will be heard, and provided background. In summary, BB1's pending application requests 95% of the Project TIF over the course of 15 years up to a maximum of $11,500,000.00. As consideration, Developer proposes: To construct 90 public parking spaces restricted for use by the public; To construct the Project in accordance with several green building standards; and to incorporate various tools to promote local hiring and the use of Locally Owned Small Businesses for construction of the Project. On March 28, 2024, CRA staff received an Evaluation of the TIRFA request for the project from Mr. Abramson, who was hired by the CRA as a third-party financial consultant to assist in reviewing the TIRFA request (see Attachment XVI). The evaluation focused on the Project's need for TIF funding and the financial impact to the CRA of awarding the requested TIF as proposed. The evaluation also includes general comments evaluating the public benefits proposed by BB1. Ms. Bonnie Miskel, on behalf of the applicant, provide a presentation on the following: CRA Mission Statement; Property Location; Approved Master Plan/Site Plan; Summary of Terms; and TIF Valuation Summary. Chair Penserga opened public comment. Ms. Susan Oyer said that she has been commenting on this project for years. She stated that the project does not have enough office spaces and they need more jobs in the City. She noted that they were supposed to get a hotel out of this agreement. She suggested white roofs for the project, so it is eco-friendly and hoped to see more vegetation on the buildings. She asked what makes this project distinctive. She noted that there was no height differentiation in the building. She stated that she would like to see less TIF Funding for this project. Mr. Harry Woodworth stated this is prime property and the waterfront is an attraction. He noted that it is a good project, but they need to receive something in exchange for that amount of TIF money. He spoke about a hotel or something that draws people into the City. Meeting Minutes CRA Board Meeting Boynton Beach, FL April 9, 2024 Mr. Dan Tubberdy said that they appreciated the 90 public parking spaces but asks if it lasts if the TIF funding is being used. He suggested they should have parking in perpetuity. Mr. Michael Minia stated that the Marina Village condo board set in a letter. He mentioned that there is more history to this project. He noted their builder did not receive TIF funding for their parking. He asked the CRA to hold everyone to the same standard. He spoke about the 90 parking spots. He stated that someone will build something beautiful there without TIF funding. Mr. Martin Klauber said that the video did not give the perspective for residents who live to the east. He said that they are asking for public money for private purposes. He noted the traffic safety problem in the area. He provided Casa Costa as an example of lost public parking spaces. He asked for parking in perpetuity no matter the owner. Ms. Hope Sukin said that the Marina Village residents live with a serious safety problem because of traffic. She expressed concern about the sum of requested TIF funding. Ms. Barbara Ready stated that the CRA gave the property to the previous owners. She expressed concern about the amount of retail space and lack of public parking. She also noted that there appears to be parking meters. She said that they need more parking downtown, including more handicapped parking. No virtual comments. Chair Penserga closed public comment. Ms. Miskel responded to the public comments. Ms. Duhy recommended that the CRA directs staff one of three ways: vote down the application and cease negotiations; direct staff to further negotiate issues with the developer; or approve the request as presented and for staff to bring back an agreement. She noted that Mr. Abramson was available online as well. Board Member Cruz asked if the parking spaces are in perpetuity. Ms. Miskel affirmed. Board Member Cruz said it may be a good idea for staff to handle further negotiations. Vice Chair Kelley asked Ms. Duhy if this is a typical timing of a request like this. Mr. Tack explained that there need is expressed within their request. He added that the timing is of the essence to the applicant. Vice Chair Kelley asked for clarification on the process. Ms. Duhy replied that, from a timing perspective, this is nothing illicit. She reiterated that they have an approved master plan. She also added that the developer's agreement requires them to submit for a building permit by September 2024. Meeting Minutes CRA Board Meeting Boynton Beach, FL April 9, 2024 Mr. Barry Abramson, consultant, addressed the timing issue and spoke about the current market. He said 58 of the 90 retail parking spaces have been switched from dedicated to available for the general public. He noted that they were able to reduce their garage by 32 parking spaces and provide those spaces. He spoke about job creation. He stated that the applicant's estimates are reasonable in the current market. Board Member Hay said that the location is vital to how Boynton Beach will look in the future. He stated that he is still not convinced, and he wants more. He suggested that they need to look at their top priorities within the City. He asked for a total of 100 parking spaces. He emphasized the need for more public benefits. Board Member Turkin thanked the Marina Village resident for speaking on this item. He reviewed the history of this project and the CRA's decision-making. He stated that the Live Local Act removes the authority to approve projects. He said that they do want increased height or density if the developer needs to sell the property. He stated that he cannot vote for this item as it exists today. He requested that the President of the Marina Village Condo Board be included in negotiations. He asked to be involved with staff in the negotiation of terms. He said that no deal is better than a bad deal. Vice Chair Kelley agreed with Board Member Turkin's sentiments. She stated that the requested amount is too much for what the CRA is receiving. She said that she is comfortable with staff negotiating the terms. She is not comfortable with the 15-year terms as it would tie up income too long. She expressed similar concerns regarding the parking. She noted that she cannot support it as presented. She asked about recapturing parking revenue. Chair Penserga said negotiations should be able to bring about a compromise for both parties. He said that he wants to ensure adequate public benefit. Mr. Robert Urbanski, applicant, addressed comments and concerns. He emphasized the benefits of the public private partnership and the positive impact on Boynton Beach. He commented on providing public parking. He stated that they plan to sign a guaranteed contract with the construction company within a month. He reiterated that they are required to pull permits by September 2024. There was consensus from the Board to direct staff to continue negotiations with the applicant. Mr. Tack asked for clarity on desire for parking. Mayor Penserga asked staff to find the best possible deal for the CRA and City. Ms. Duhy clarified that they were looking for the best and final offer from the applicant. Meeting Minutes CRA Board Meeting Boynton Beach, FL April 9, 2024 Ms. Miskel said that they look forward to discussing with staff. She requested that the meeting to occur quickly since they do not have a luxury of time. Ms. Duhy said if they get started right away, they should be able to come back with revised terms for the next CRA meeting. Ms. Miskel stated that she has a conflict with the next meeting date. She asked if they could host a special meeting or change the date. Board Member Cruz would not be in the support of a special meeting but noted she also has a conflict for the next CRA meeting. She recommended another date. Discussion ensued. There was consensus to hear the item prior to the May 7th City Commission meeting. Ms. Duhy summarized the feedback from the CRA fand next steps for Mr. Abramson. B. Discussion and Consideration of Purchase of 703 S. Federal Highway Mr. Tack introduced the item and provided background. The vacant lot located at 703 S. Federal Highway is a commercial 27,843.552 square foot (0.6392 acres) vacant lot which appraised at $1 ,568,000.00 (Attachment Ill). The future development of the lots would be mixed-use under the MU Medium Future Land Use Classification. The development potential would allow a mixed-use development with a maximum density of 40-50 units per acre and a maximum height of 65'-75'. He stated that the options are: • Approve the purchase of the vacant lot located at 703 S. Federal Highway in the amount of $1,568,000.00 and allow the Chair to sign the Purchase and Sale Agreement. • Do not approve the purchase of the vacant lot located at 703 S. Federal Highway. • Alternative direction as provided by the CRA Board. Chair Penserga opened public comment. Ms. Barbara Ready asked if it is large enough to build a new senior center. No virtual comment. Chair Penserga closed public comment. Motion: Board Member Cruz moved to not approve the purchase of the vacant lot at 703 S. Federal Highway. Vice Chair Kelley seconded the motion. The motion passed unanimously. C. Discussion and Consideration of Purchase of 524 NW 3rd Street Meeting Minutes CRA Board Meeting Boynton Beach, FL April 9, 2024 Mr. Tack introduced the item and provided background. The property is approximately 8,476.78 square feet (0.1946 acres) and zoned R1A-Single Family, 6 DU/AC. The future development would be low density residential (LDR) 5 DU/AC. The development potential would allow low density residential with a maximum density of 7.5 units per acre and a maximum height of 45'. The CRA has successfully partnered with Habitat for Humanity and the Boynton Beach Faith Based Community Development Corporation in using such infill lots to fulfill its mission of providing affordable housing within the BBCRA Districts. The property is currently listed for sale at$199,999.00 (Attachment III) and was appraised on February 17, 2024, for $195,000.00 (see Attachment IV). The seller has accepted the appraised value for the property and provided an executed Purchase and Sale Agreement (Attachment V). This is comparable to the square footage cost of recent CRA acquisitions in the Heart of Boynton District (Attachment VI). He reviewed the options: • Approve the purchase of 524 NW 3rd Street in the amount of $195,000.00 and allow the Chair to execute the Purchase and Sale Agreement. • Do not approve the purchase of the vacant lot located at 524 NW 3rd Street. • Alternative direction as provided by the CRA Board. Chair Penserga opened public comment. No one came forth to speak. No virtual comment. Chair Penserga closed public comment. Motion: Board Member Hay moved to approve the purchase of 524 NW 3rd Street in the amount of $195,000.00 and allow the Chair to execute the Purchase and Sale Agreement. Vice Chair Kelley seconded the motion. The motion passed unanimously. 16. CRA Projects in Progress A. Coastal Cruiser Powered by Circuit Transit Inc. Project Update Ms. Bonnie Nicklien provided an update on the item. She showed the promotional video. She noted that they will provide data in a few months. Board Member Turkin thanked Chair Penserga for bringing this opportunity forward. Board Member Cruz thanked staff for ensuring the event was a success. B. Boynton Beach Spring Market Recap C. Social Media & Print Marketing Update D. Social Media Outreach Program 2nd Quarterly Report for FY 2023-2024 (January 2024 - March 2024) E. CRA Economic & Business Development Grant Program Update Meeting Minutes CRA Board Meeting Boynton Beach, FL April 9, 2024 F. MLK Jr. Boulevard Corridor Mixed Use Project (d/b/a Heart of Boynton Village Apartments) Update - April 2024 17. Future Agenda Items A. Discussion and Consideration of the Submittals from the Request for Proposals for Property Appraisal Services - May 2024 B. Update on Negotiations with Maple Tree Investments in Response to the Second RFP/RFQ for the CRA-owned Property located at 401-411 E. Boynton Beach Boulevard - May 2024 Board Member Cruz requested to add a discussion about code enforcement officers to the June meeting. 18. Adjournment There being no furth-r business to discuss, the meeting was adjourned at 9:19 P.M. Tammy Sta'zione, C Deputy City Clerk