Loading...
Minutes 08-24-02MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY WORKSHOP HELD IN THE CITY HALL CHAMBERS, BOYNTON BEACH, FLORIDA ON SATURDAY, AUGUST 24, 2002 AT 9:00 A.M. Present Larry Finkelstein, Chairman Jeanne Heavilin, Vice Chair Alexander DeMarco Don Fenton Doug Hutchinson, CRA Director Absent Josh Aguila Michelle Hoyland Henderson Tillman I. Call to Order Chair Finkelstein called the workshop meeting to order at 9:00 a.m. II. Roll Call The Recording Secretary called the roll. III. Agenda Approval Mr. Hutchinson asked that the Board allow time for a short discussion with Susan Villhauer, an applicant for the position of Controller. The Board agreed with this addition to the agenda. IV. CRA Planning A. Proposed Budget and Funding Forecasting Mr. Hutchinson stated that of the 141 responses to the advertisement for a controller, 98% were bookkeepers and did not have experience with non-profit accounting, grant writing and reporting requirements, financial statements, government reporting, working with non-profit boards, payroll, and budget forecasting. He introduced Susan Villhauer to the Board, stating that she had experience in all of these areas. He had previously sent information from Ms. Villhauer's resume to the Board members. Chair Finkelstein thought that the Controller would have to be bonded and insured. Ms. Villhauer expanded upon her background and experience and answered questions from the Board. Meeting Minutes CRA Budget Workshop Boynton Beach, Florida August 24, 2002 The Board had previously given Mr. Hutchinson the authority to recommend personnel that could be hired subject to the Board's approval. The consensus of the four Board members who were present was positive. Mr. Hutchinson will bring a fi~ .,.;;zed version of the employment contract to the Board at its next meeting. Budget Discussion Chair Finkelstein noted that they were gathered together to workshop on the budget from October 1, 2002 through September 30, 2003 and discuss some long-term planning issues in a five-year program. The Board discussed the details of the budget and received clarification from the Director on various points. Mr. Hutchinson provided the Board members with a four-page budget narrative that highlighted major items in the budget and provided insight as to their origination. Since this was the first budget as an independent CRA, Mr. Hutchinson sought the review and direction of the Board. Mr. Fenton inquired about a fiscal versus an annual budget and thought he had heard that the CRA had to have a fiscal budget. A discussion ensued on this topic. Chair Finkelstein stated that he believed the City not only wanted the CRA to be on a fiscal year budget, but also thought that State Statute required it. The Board's attorney did not agree with that. The Board had wanted to be on a calendar year basis to be more businesslike - to have profit and loss statements and balance sheets, rather than a sources and uses type of budget. It had also wanted to move to a more businesslike format of reporting system. Chair Finkelstein had asked the State Community Redevelopment Association to tell him how many CRAs were on fiscal years and how many were on calendar years and was waiting for their response. Mr. Hutchinson said that he had switched to a fiscal budget starting on October 1 due to the short timeframe. If the Board wished to switch to a calendar year in December, it could. Chair Finkelstein stated that the City had not entirely agreed with transferring their money to them. Mr. Hutchinson thought that having the Controller on Board and bonded, and having the financial software installed, should facilitate the funds transfer to the CRA on October 1. Mr. Hutchinson stated that in the future, small charts would be "blown up" prior to putting in the member's agenda packets. Mr. Hutchinson discussed the distribution list of the agenda packets (25) and it was decided that Ms. Payne would examine the list to see which ones were legally required and let the Board decide about the rest. INCOME The Board looked at the Income portion of the proposed budget. Mr. Hutchinson stated that the interest income on New Revenue was a "guesstimate" by staff. Chair Finkelstein asked about Year 2, Bond Proceeds for RiverVValk $3M. In his opinion, they were wasting $150K a year in interest holding on to the $3M for a year and not buying any real estate. He told the Director that he thought it should be paid off right away and turned into a Letter of Credit. This would mean that they still had access to $3M, but would not be paying interest on it. Chair Finkelstein's reason for asking the question 2 Meeting Minutes CRA Budget Workshop Boynton Beach, Florida August 24, 2002 was that under Year 2, Expenses, there was $90K to reissue $3M. Why would they want to spend $90K if.they could just pull off their line of credit? Mr. Hutchinson stated that this was purely for budget purposes. If they did acquire enough properties by the second year, $90K would be the underwriting fee for the bond, The Board debated the issue of bonds versus Letters of Credit at length. Chair Finkelstein favored paying off the loan_. .....~ ~......~. ,..,~ .~..~ ~ ~.~ ~.^~,, .., ..,.,., ..~ ¢~v but was not in favor of doing the $3 million bond at a cost of $90K. The interest payment shown for the bond matched the interest being paid now on the Letter of Credit - he did not see any benefit to the bond. Mr. Hutchinson mentioned the issuance cost, which would be 4%. He used a rule of thumb for budgeting purposes to say that it would take about 10% to retire the principal amount of the bond because they were looking at the bond market in two years' time. Mr. Hutchinson knew they were looking at assembling the properties but did not think that anyone had a feel for how quickly the properties would be assembled. Chair Finkelstein submitted that the CRA would have the $3M Letter of Credit if they converted the current loan. And, their TIF income had tripled from when they took out the loan. Any properties they were buying would be capitalized in one year so they had enough annual income from TIF and the reserve balance to purchase everything without taking out a bond. Mr. Hutchinson agreed but pointed out that it would take $3M for the RiverWalk and Phase One and Two of the Promenade and that this would put them over the edge. He realized that the acquisition of properties could probably be handled in house. Mr. Fenton stated that if they did go out for a bond, he did not want to be in the position of having only one bidder. Mr. Hutchinson thought that under the mechanisms that were being set up, including the budget forecast, this would not happen since the expenditures would be planned. Also, the Letter of Credit would buy them a cushion. TIF Projection Mr. Hutchinson stated that the TIF projection was what the City, County, and taxing districts had given them and were pretty firm numbers. The years beyond year one show moderately pessimistic numbers for TIF, as projected by the City. Mr. Hutchinson thought that if the western Industrial Park area were to be removed from the CRA, it would not substantially impact the CRA. EXPENSES Chair Finkelstein remarked that the money for SEP IRA was not supposed to begin until after the first year, per Mr. Hutchinson's contract, and the contracts of the other new hires. Mr. Hutchinson stated that that was in the salary figures now but that it would be .....,~,...,~,"'^'" amended since this was the case. $13,250 would be removed in year one. The CRA's goal was to have their contract employees become regular employees as soon as possible. When this occurred, it was possible that as regular employees of the CRA, they might be able to obtain coverage through the City's insurance; however, the amounts for insurance were left in for budgetary purposes, just in case. Mr. Hutchinson indicated that the CRA Statute called for CRA Plans to be kept updated. The Plan had been accomplished in part - the Heart of Boynton and the Federal Highway Corridor had been done. The Ocean District was being finished up by City 3 Meeting Minutes CRA Budget Workshop Boynton Beach, Florida August 24, 2002 was that under Year 2, Expenses, there was $90K to reissue $3M. Why would they want $90K if they could just pull off their line of credit? Mr. Hutchinson stated that. as purely for budget purposes. If they did acquire enough properties by the sec~,~d year, OK would be the underwriting fee for the bond. The Board debated the issue of bonds ~us Letters of Credit at length. Chair Finkelstein favored paying off the and in doing a $3M bond at a cost of $90K. The interest payment shown fo bond the interest being paid now on the Letter of Credit - he did not any benefit to the id. Mr. Hutchinson mentioned the issuance cost, which woul, 4%. He used a rule for budgeting purposes to say that it would take 10% to retire the principal of the bond because they were looking at the market in two years' time. Mr. Hutchinson knew the' that anyone had a feel Finkelstein submitted that the the current loan. And, their TIF properties they were buying income from TIF and the reserve bond. Mr. Hutchinson agreed but and Phase One and Two of the He realized that the acquisition of looking at assembling the properti but did not think how quickly the properties would assembled. Chair RA would have the $3M Letter of if they converted had tripled from when took out the loan. Any e capitalized in one year they had enough annual lance to purchase without taking out a out that it take $3M for the RiverVValk ~de and that thi #ould put them over the edge. could be handled in house. Mr. Fenton stated that if they did go out for of having only one bidder. Mr. Hutchinson tho being set up, including the budget expenditures would be planned. Also, the he did not want to be in the position that under the mechanisms that were this would not happen since the would buy them a cushion. TIF Projection Mr. Hutchinson stated that the TIF ection was what districts had given them and firm numbers. show moderately pessimistic for TIF, as projected thought that if the western Ind~ Park area were to be would not substantially CRA. City, County, and taxing years beyond year one ~e City. Mr. Hutchinson from the CRA, it EXPENSES Chair Finkelstein rema that the money for SEP IRA was not su to begin until after the first year, Mr. Hutchinson's contract, and the contracts of other new hires. Mr. Hutchin stated that that was in the salary figures now but would be waived, since thi,, the case. $13,250 would be removed in year one. CRA's goal was to their contract employees become regular employees as as possible, this occurred, it was possible that as regular employees of th, RA, they might able to obtain coverage through the City's insurance; however. am~ insurance were left in for budgetary purposes, just in case. Mr. Hu The Hig indicated that the CRA Statute called for CRA Plans to be kept updated. had been accomplished in part - the Heart of Boynton and the Federal Corridor had been done. The Ocean District was being finished up by City 3 Meeting Minutes CRA Budget Workshop Boynton Beach, Florida August 24, 2002 Staff. The next two areas that had to be updated during 2003 were the West Industrial Avenue area and the Boynton Beach Boulevard Corridor. They could pay City staff to do it like they did with the Ocean District for $25K, hire a consultant, or do it in-house. Chair Finkelstein stated that the CRA did not approve the Development Department doing the Ocean District. The Board asked to be relieved of the charge for the hours that were spent on that project. Chair Finkelstein had told Mr. Greene that a bid should go to outside parties to make sure that they were not overspending. They spent $10 - $15K on the Federal Highway Corridor and he did not see why they had to spend $25- 30K on the Ocean District. If the CRA undertook the Boynton Beach Boulevard Corridor, they should bid it out. Mr. Hutchinson stated that it could be done in-house. Chair Finkelstein stated that the Board wanted to do design guideline overlays for development on the Federal Highway Corridor and Boynton Beach Boulevard Corridor. The consensus was to hire a consultant to do it and go out for bid. The Board discussed office space. The projection was for $15/sq. ft. per year plus CAM. Nothing had been firmed up yet for a definite place. Chair Finkelstein asked about advertising and public notice. He understood that this would be for CRA-specific projects, not Planning & Development projects, and Mr. Hutchinson agreed. The projected amount was $4K. Mr. Fenton mentioned that the CRA might have to go out and get a new attorney and there would be some costs for that. Mr. Hutchinson said that would be part of the Public Notices. Chair Finkelstein asked about the amount of GALA. Mr. Hutchinson stated that this was an acknowledgment of the goal of starting to get some festivals for the downtown area. He thought that GALA might not occur and it might not happen in the first year because there was no place for it. Chair Finkelstein stated the Promenade was always supposed to become an event corridor. The budget item could also be for contributions towards events. Chair Finkelstein did not want checks to start going out the door once the budget were approved and thought that if specific programs were to be named, it would amount to a commitment on the part of the CRA. Mr. Hutchinson understood. Mr. Fenton suggested putting $40K under festivals and deleting the reference to GALA and the Board concurred. Chair Finkelstein questioned spending $40K on festivals. Mr. Hutchinson said that any requests would be brought before the Board for their approval. Vice Chair Heavilin asked if the figure for seasonal decorating would be in addition to the City's lighting budget. Mr. Hutchinson stated that in the CRA area, they needed to be proactive if they were redeveloping. He did not want to have to ask the City for money if they had to have the banners along the streets replaced with Christmas banners for the merchants, for example. Chair Finkelstein thought that this would be an issue for a Downtown Development Authority. The Board decided to put festivals, lighting events, seminars, and decorating, in one lump sum. Vice Chair Heavilin asked what Mr. Hutchinson was thinking of for seminars. Mr. Hutchinson said that when the CRA began to look at BODA and the Heart of Boynton, they might want to bring in retail specialists and other special speakers to do on-site 4 Meeting Minutes CRA Budget Workshop Boynton Beach, Florida August 24, 2002 seminars for local businesses on such topics as marketing their businesses and how to develop web pages. $100K was put in the budget for the Fac,,ade Grant Program in 2003, subject to approval of the CRA. Mr. Fenton asked if anyone had applied. Mr. Hutchinson stated that they now had two applications and some people waiting in the wings. They had to discuss where they were going to let that apply. People had inquired about the program on buildings that may be obsolete, and this meant that the design guidelines had to be put in place as soon as possible. The fac,,ade grant program was subject to their approval as a Board - it was not a given. The Board agreed that having a booth at the mall would be a good idea, when their brochure was ready. A discussion ensued about the term "venture capital" in the draft budget. The Board's consensus was that the term "venture capital" should be replaced by the term "revolving loan fund" or something similar. It could be put in with the economic incentive program also. The $175K in year 2 for the sign program was discussed. Mr. Hutchinson stated that he wanted to come in with a whole program for identification in the CRA but was not ready yet. Chair Finkelstein asked if this would include what the Board wanted to see, which was an entry marker at 1-95 and Boynton Beach Boulevard. Mr. Hutchinson replied that he was thinking of the Ocean District, the Marina, the Downtown Core, and the MLK Corridor, to develop some gateways rather than just wayfinding. The Board advised Mr. Hutchinson that they had a presentation from a professional who could do something for less. Chair Finkelstein thought that the line item should be changed to gateway features or markers or CRA identifications. The Board discussed the RiverWalk and Promenade and agreed that they wanted both done as far as design. They wanted to see a figure that reflected the design and architectural fees through construction bid documents for the project. The Board discussed whether it wanted to have an amount for consistent reserves like a percentage of TIF or some such number. The Board agreed that $750K would be a good target, with some dissension. The Board thought that the tentative budget before them was a great start and thanked Mr. Hutchinson for his efforts. PUBLIC AUDIENCE Herb Suss, citizen of Boynton Beach, asked if the CRA would participate in GALA this year. Chair Finkelstein understood that GALA would not take place this year. Mr. Suss thought that it would be good for the CRA to advertise its progress at City Hall in the Mall so people's excitement could be maintained. He expressed his excitement at the potential plans for the IMAX and RiverVValk area. Mr. Hutchinson commented that the 5 Meeting Minutes CRA Budget Workshop Boynton Beach, Florida August 24, 2002 CRA was looking at a newspaper article in cooperation with the City and possibly something with the Chamber of Commerce. Chair Finkelstein stated that the CRA had remarks in the Chamber's newsletter that goes out monthly to 30,000 to 40,000 people. Mr. Suss asked if they were coordinating their efforts with the Marina developers. He noted that the Marina developers would start to build in January. Chair Finkelstein mentioned that the developers come before the CRA for approval and would be coming back again. Mr. Hutchinson stated that the Marina developers meet weekly with City staff. Mr. Suss felt they should be working closely together. Mr. DeMarco commented that the presentation Dale Sugerman had made at the Economic Development meeting was excellent and would be shared with the public. The meeting adjourned at 10:45 a.m. Respectfully submitted, Susan Collins Recording Secretary (two tapes) (O83OO2) 6