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Minutes 12-12-96MINUTES OF THE SPECIAL CITY COMMISSION MEETING HELD IN THE LIBRARY PROGRAM ROOM, BOYNTON BEACH, FLORIDA, ON THURSDAY, DECEMBER 12, 1996, AT 7:00 P.M. PRESENT Gerald "Jerry" Taylor, Mayor Shirley Jaskiewicz, Vice Mayor Matthew Bradley, Commissioner Henderson Tillman, Commissioner Jamie Titcomb, Commissioner Dale Sugerman, City Manager James Cherof, City Attorney Sue Kruse, City Clerk CALL TO ORDER Mayor Taylor called the meeting to order at 7:05 p.m. Commissioner Bradley was not yet present. Therefore, Item A was discussed later in the meeting. ClTYWIDE AND MARTIN LUTHER KING, JR. BLVD. DEVELOPMENT STRATEGIES Todd Kotas, Director of Economic Development, showed video tapes during his presentation. One video depicted a jet, which was manufactured in a small town in Missouri. The community enticed that company with incentive dollars, and this created jobs in the community. Mr. Kotas spoke of what is necessary for a community to develop into a major manufacturing community. Investment in the community by government comes in a number of forms. One comes in the form of incentive dollars. These dollars can be either through bond issues, sales tax, etc., to entice companies to move to the area. We need this because, predominantly, we are known as a retiree city. We are not a tourist destination, nor are we a heavy manufacturing industrial area at this time. Motorola is our big manufacturer; however, they are going to announce the laying off of additional people in January. Mr. Kotas showed another video showcasing Ormond Beach and pointed out that they tried to sell the entire area, not just the City of Ormond Beach. He pointed out that the industries shown in the video have only been in the Volusia County area for six or seven years. Through the Mayor of Ormond Beach, the City was aggressive and grabbed industries around them. They also spent investment dollars to go to New Jersey and New York to try to solicit some of the northeastern companies to locate in their area. The whole key to a lot of problems in the community is employment. If you can raise the employment and wage level of the people, you remedy a lot of the problems in the CBD, CRA, or the western suburbs. MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA DECEMBER 12, 1996 Mr. Kotas reviewed his proposed five year economic development initiative. The first page identifies what we need to do in order to sustain obtainable growth on an ongoing basis. The next two pages show the business plan, including the costs involved in implementing this type of process. This five year program will help bring jobs to the community. At this time, Commissioner Bradley arrived. Mr. Kotas pointed out that the marketing process shows a five year, three tier system, comes to $2.265 billion dollars, and has an operating budget to develop materials, such as the tapes he showed this evening. Our wealth in this community is the people. We need to develop a piece of material in order to tell some of the manufacturers about our quality of life, as well as the quality of the people we have to work in their facilities. We will work in conjunction with the Business Development Corporation; however, they serve 35 cities and have other interests as well. He referred to the Community Redevelopment Agency taxable values and said that even if they are increasing, they are not increasing as good as in some of the surrounding communities. We need to develop additional sources of revenues. Enterprise Florida (now the Department of Commerce) has several grant programs, and we can get bonding money ($500,000.00 to $2.5 million) for manufacturing companies. Industry clustering of economic development is important because we do not have a track record on the targeted industries that we want to focus on from a marketing standpoint. He surveyed 15 major companies and asked them where they thought Boynton Beach was. A couple of them thought it was in California. Boynton Beach is not the identifier that we need. Ormond Beach includes themselves in the foreign trade zone site, which is actually in Daytona Beach. We are now doing that. The Commission will hopefully sign a resolution tha! will go to the Port of Palm Beach. That will help increase employment levels and allow us to recruit industries that are involved in the international arena. Witlh regard to incentives, it is necessary that we look at what some other cities have done throughout the State of Florida, which is a tax abatement incentive. Four major cities (D~land, Daytona, Ormond Beach, and New Smyrna Beach) have passed the tax abatement on ad valorem taxes in order to entice industries that will employ people. Mr. iKotas said right now there are about 14,000 of his counterparts throughout the United States who are attempting to solicit industries not only within the United States, but in the 2 MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA DECEMBER 12, 1996 Caribbean/Latin America area, which is now the big focus. There is a firm belief that this area will end up being the international headquarters for not only United States companies, but for European companies as well. This plan, with the tax abatements and other incentives offered by the State of Florida, the County, and the City, we can get into pretaxable bonds (a small business pool of money that with which we can start to develop in the community). There are a number of financial ways that we can help small businesses as well as large industries relocate here. The downtown facade program and a number of other things have been instituted in order to help small business owners and redevelop the downtown area. Vice Mayor daskiewicz asked if a study has been done to see how much land is available in Boynton Beach. Mr. Kotas advised that about 150 to 170 acres are available in Quantum Park for development. A hotel establishment is considering locating in the west. In addition to Quantum Park, there are several other areas available for light manufacturing, assembly work, or some sort of high tech commercial research type of companies. He pointed out that Boynton Beach does not have a trade booth to disptay its City, and said we need to focus on the industrial sector. Vice Mayor Jaskiewicz asked if Ormond Beach developed property owned by the City or by others. Mr. Kotas advised that they developed both. However, it did not matter if they owned it or not because it brought in jobs and tax revenue. He advised that most economic developers throughout the United States deal with private entities. Mr. Kotas advised that the tape he has shown cost about $14,000.00. It cost about $2.50 a Copy, and thousands of copies were probably sent out to CEO's offices. He said we need an additional vehicle, such as the Internet or other marketing materials in order to compete in the marketplace. We also need to structure an incentive package in order to recruit industries into the area. Mr; Kotas advised that the overall package contains incentives. However, we will not do it On our own, We will do it in conjunction with the State of Florida. He said right now, the homeowner in this community is probably taking the largest burden of the tax cost. Mayor Taylor asked if Mr. Kotas had the opportunity to review the video that the Chamber of Commerce has put together. Mr. Kotas answered affirmatively. Mayor Taylor also asked if Quantum has been contacted to see what they are doing to market their park. Mr; Kotas advised that they have yet to complete a final agreement with Simon, and they donot plan on doing a video at this time. The Chamber tape focuses on the quality of life. MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA DECEMBER 12, 1996 We can probably use some excerpts from it to save some costs; however, we want to focus on industrial development. As we try to attract high teoh companies, we need some sort of inducement. We are competitive in the marketplace as a community; however, we just need to market ourselves. No one knows where Boynton Beach is. We have one of the most premium industrial parks in South Florida that has been untapped. It is necessary that we make this known from a marketing standpoint to industrial site developers and get into the trade shows to develop energy and a cluster of industry around what we currently have. We might look at plastic suppliers or CNC operators that would want to be suppliers to Motorola. Once we entice that type of subsupplier, in essence we have sealed Motorola into staying in the community. Right now there is nothing really holding them to this community, other than their initial investment. He assured the Commission that a company of this size can move in and out of this type of marketplace very easily. Mr. Kotas advised that we also have an industry program to help our industries expand their operations to make sure they are not going to leave us. Mr. Kotas showed a video of the "Breeze" manufactured by Solarmax, which is based in Sarasota. Mr. Kotas said his plan anticipates 2,500 jobs by the next five years. He hopes to target jobs that pay at least $14.00 an hour, plus benefits. This is necessary in order to have a community grow in order to be a world class community. Commissioner Titcomb stated that most communities are looking for economic development. He asked what methodology Mr. Kotas recommends to match the appropriate types of industries that are right for this community. Mr. Kotas advised that we need to do a target market study on value added, and a study on what we currently have that might be a cluster type of industry base. We need to do a survey on every one of our industries and ask them who their subsuppliers are. Some of them will not name their subsuppliers; however, many times you can find that out. Mr~ Kotas pointed out that the jet shown in the video was not built at an airport or in the desert, and most of the large boat makers in the State of Florida are not located on the water. One of the target markets that he would like to look at is the Demon Group, which manufacturers dive equipment. Quantum is an ideal spot for manufacturing. We need to sit down as an economic development team and decide what we want to entice, and we want to look at high end jobs. At this time, Item A was discussed. Discussion of Item B continued afterward. 4 MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA DECEMBER 12, 1996 PROPOSED BUDGET FOR FAMU BAND'S PARTICIPATION IN 1997 BLACK AWARENESS DAY FUNCTIONS WITH REPORT FROM BLACK AWARENESS DAY COMMITTEE Wilfred Hawkins, Assistant to the City Manager, distributed and reviewed a revised proposed budget showing the potential revenues for this event. Aisc, eight local bands will be invited instead of six. (A copy of this budget is attached to the original minutes on file in the City Clerk's Office.) The Committee has embarked on some fund raising efforts. We have contacted both alumni chapters of the Alumni Association in Palm Beach County and they have expressed interest in participating in this event. They will give us their final answer by December 22. Santaluces High School has been contacted for the use of their field and that should be finalized by next week. Lena Rahming, Chairperson of the Black Awareness Day Committee, advised the Commission of the organizations and individuals that she has forwarded letters to requesting donations. She requested each City Commissioner of Boynton Beach to be role models and donate at least $100.00 towards this cause to help bring about a change in Boynton Beach. She stated that people are coming from other cities and states to make a change and maybe the youth would want to join the band and do something constructive other than wasting their lives away. She said the Committee is not asking the City to give them anything. They are only asking for a loan. She advised that about six years ago, she borrowed money from the City to bring the Bahamian band here, and she paid it back within six weeks. Mr. Hawkins added that this loan was $18,000.00. Aisc, staff will be sending out corporate sponsorship requests to the local businesses. Commissioner Titcomb asked how much money is needed up-front. Mr. Hawkins did not know how much the band will request; however, the transportation expenses to bring the band here will have to be paid up-front. Commissioner Titcomb asked how much rain insurance will cost. Mr. Hawkins estimated it to cost between $500.00 and $1,000.00. However, he did not consider this an expense because based upon our relationship with our carrier, it is already budgeted for in our Risk Management budget for special events. Vice Mayor Jaskiewicz asked if sanitary facilities and security will be provided at the stadium. Mr. Hawkins advised that sanitary facilities will be provided; however, we would have to arrange for security through the Sheriff's Office Auxiliary. They are a volunteer organization, but will probably ask for a donation. We will also probably use volunteers for the parking. The stadium can seat 4,000 to 5,000 people or more. 5 MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA DECEMBER 12, 1996 Commissioner Titcomb asked if there has been an attempt to get the media to sponsor the advertising. Mr. Hawkins advised that the Palm Beach Post, the Sun-Sentinel, and television stations will be asked to help sponsor this event. Mayor Taylor asked when the event will be held. Mr. Hawkins advised that he is shooting for January 25th. That date may change, depending on the availability of the field and the band. With regard to the rain insurance, Commissioner Bradley asked if a policy will be purchased that would protect the revenues if the event were rained out. Mr. Hawkins advised that we will insure ourselves for $44,000.00. Commissioner Bradley advised that it is a lot more expensive than $1,000.00 and is really cost prohibitive. You need to put 50 percent of the money up-front to buy a rain insurance policy. He would not suggest going that route. Mr. Hawkins advised that we have access to a lot of different underwriters and there are ways to work that out. Mayor Taylor agreed that it was cost prohibitive. He was involved in a rodeo in Boca Raton that was rained out. A considerable amount of money was paid for rain insurance, and it could not be collected. He asked if we have to provide facilities for the members of the band to change into their uniforms. Mr. Hawkins advised that they will not need such facilities, Mayor Taylor asked if the event will be advertised in the newspaper. Mr. Hawkins was hoping to get the Palm Beach Post and radio stations to sponsor the advertising. Mayor Taytor felt this is a great idea. However, he was concerned that there is not enough time to advertise this event. He said he was involved with grad night several years ago. The Gatlin Brothers, a nationally known County and Western group, were going to be there. The event was well advertised, yet only about 300 tickets were sold in advance and only 300 at the gate. He said these type of events are tough to pull off if you do not know what you are doing. He asked how the 1,000 advance ticket sales and 3,000 ticket sales at the gate were arrived at. Mr. Hawkins advised that this is the number of tickets that need to be sold. Tommy Williams, former City employee, advised that the FAMU band will bring in people from Palm Beach, Broward, and Dade Counties. Octavia Sherrod of Community Improvement stated that two years ago, the FAMU band was invited to an all-expense paid trip;to France. With the proper advertising, those tickets are going to be sold. The children in our community live to go to college to become members of this band. 6 MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA DECEMBER 12, 1996 Commissioner Titcomb felt the crucial element is the advertising so that people know FAMU is going to be here. Mayor Taylor pointed out that the Committee needs to make sure they are not competing with another great event that may be scheduled for that night. He also pointed out that it would be setting a precedent for the City to loan money for an event. Mr. Hawkins advised that the Committee will know right away how well things are going. If it does not look like it is going to go well, the Committee wilt be ill advised not to come back to the Commission and tell them that they cannot do it. Mayor Taylor cautioned the Committee to be careful of how much they contract up to that point. Mr. Hawkins advised that the only contract needed to be signed is with the FAMU band. Vice Mayor Jaskiewicz asked if refunds have to be given for the tickets that have been paid for if it rains. Mr. Hawkins said there will be no refunds. Commissioner Bradley asked if the profits would go to seeding Black Awareness next year. Commissioner Tillman stated that some of the money will go toward scholarships. He would like some to go to the Bulldogs football team, and stated that some could go to seeding Black Awareness next year. The money will be divided as equitably as possible. He said this event will be advertised; however, the mere mention that this band is coming here is going to draw people. This is something that is positive for the community, especially during this time of the year, and especially because of the direction in which we are trying to move. Vice Mayor Jaskiewicz asked if all the bands will be there at one time. Mr. Hawkins answered affirmatively. He said it is a marching festival. The high school bands will be competing against one another for first, second, and third place, and the FAMU band will be last as the feature show. He advised that the members of the FAMU band are idols. Mr. Tillman pointed out that this serves a dual role. It serves as entertainment and as a vehicle for recruitment for the university. It is a vehicle for change and for uplifting the kids. Ms. Rahming would like to see some of the profits go towards at least two scholarships to any needy, deserving student. Mayor Taylor asked if all the money would come into a fund controlled by the City. Mr. Hawkins answered affirmatively. 7 MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA DECEMBER 12, 1996 Commissioner Bradley was in favor of proceeding with this event. He asked how much the City needs to put up and suggested specific numbers be brought back to the Commission. Mr. Hawkins advised that the Committee is not going to ask for anything until they need it. The first thing we need to do is to book the transportation. He does not yet know when and how FAMU wants to be paid. Motion Commissioner Bradley moved to accept the proposed budget for the Black Awareness Day March Band Festival, and leave it up to staff to allocate dollars as needed. He asked to be updated as to how things are coming along. Commissioner Tillman seconded the motion. Mayor Taylor pointed out that this is a loan from the City and will be repaid. Mr. Hawkins stated that a document will be drawn up for the Mayor's and Committee's signatures. Vice Mayor Jaskiewicz was very excited about this, but she was also very nervous. She advised that she and Mr. Hawkins worked for a year on Unity Day, and only 256 people attended. She wished the Black Awareness Day Committee good luck. Mr: Sugerman asked if the Commission is appropriating $44,000.00 from the Contingency Fund to be drawn against as needed. Mayor Taylor answered affirmatively and added that the funds should be replaced after the event as revenues come in. The motion carried 5-0. Mayor Taylor wished the Committee luck. CITYWIDE AND MARTIN LUTHER KING, JR. BLVD. DEVELOPMENT STRATEGIES Mr, Hawkins said there is a direct connection between what Mr. Kotas talked about and redevelopment. Mr. Kotas talked about economic development (the money situation relative to how we support development activities). Mr. Kotas also talked about the marketing necessary to attract businesses for economic development. Mr. Hawkins talked about some strategies for development, whether it be business development or community development. He focused on the Martin Luther King, Jr. target area. He introduced Arthur Fleming, the Executive Director of the Community Financing Consortium, one of the co-sponsors of the Martin Luther King, Jr. Boulevard Corridor Developers' Forum held on September 6, 1996. Mr. Fleming holds a JD degree from the MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA DECEMBER 12, 1996 University of Florida, a Master's degree in Urban and Regional Planning, and is a former Director of the legal affairs of a nonprofit development company. He was also on the staff of FAU/FIU joint center for environmental and urban problems. In his current capacity, he is the Director of a 17 bank consortium that does development planning. He brings three phases of expertise to this arena (financing of development projects, planning, and legalese in those particular arenas). He also played a very important role in attracting the 21 different individuals that came to the Forum in September. Mr. Hawkins reviewed the handout that he distributed to the Commission. He referred to the redevelopment strategies as some of the key things that have to be done. First, we need a master plan for redevelopment or development, showing where to go and how to get there. We also need a lot of land to assemble. Then we need a public/private partnership to pull redevelopment off. We also need financial commitment from the City. In addition, we need to consider what role developers would like to see the Community Redevelopment Agency play in redevelopment or development activities. Mr. Hawkins stated that we all need to understand how we think about development and what it means to us. A generalized textbook or planner related definition of development or redevelopment is discovery or rediscovery of community assets and development potential underlining neglected and/or under utilized lands within mature residential and commercial areas through comprehensive analysis, use of current, creative, and multiple funding sources and land development strategies, and through significant public and resident involvement and support. He said at the Forum, there was discussion about the definition of redevelopment. A master plan should be produced to provide direction for re(development) in target areas. We have to know what we want to redevelop and decide what we want to see there. That is the purpose of a master plan. Citizens should be a part of Producing the master plan because the people living there or close to it, or who want to live there when it is completed, need to buy into that plan. In order to get that buy-in, they need to be a part of producing that plan. Potential developers should be required to use the plan as a guide for development in the target areas. However, there should be some flexibility and they should have some input. Mr. Fleming said it says something that we were able to get 21 high level individuals who are used to placing their money at risk and getting a return on that investment to come to the Forum. The panel at the Forum looked at Boynton Beach as a possible place for investment. The master plan was a heavily debated issue. He attributed this to the fact that most of these professionals were fed up with engaging in master planning type activities that never lead to actual development. The panel sensed from the Mayor and the Commissioners who attended the Forum that they wanted to see something happen in MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA DECEMBER 12, 1996 their community. Therefore, we did not look at the master planning concept process from the traditional planning mode. We looked at it as the actual guide for development, with very detailed ideas exactly how that development is to be funded, a step by step procedure, the development processes involved, and exactly what was involved from the City's end to make it a reality. There is only so much a city can do in order to turn around some of the tremendous problems that they have in their communities. We had to also look at the master planning concept from the standpoint of what the City can actually accomplish; what is within its power. Then we discussed land assemblage and public/private partnerships. Mr. Hawkins stated that we have to know where we are going and the best way to do that is to have a plan. Aisc, there has to be a buy-in from the community. The plan is a document that we can actually act on. Mr. Hawkins advised that there is going to be a need to assemble large tracts of land to make redevelopment occur. We cannot limit ourselves to any particular area. He displayed an aerial of the original target area for redevelopment, the boundaries of which were as follows: the C-16 canal to the north, N. E. 9th Avenue to the south, Federal Highway to the east, and Seacrest Boulevard to the west. At the Forum, the developers did not think this was enough. They said it was a good core area and could be a subdevelopment area, but we cannot do what we want to do totally in there. They said it was a good nucleus, but we cannot stop there. Mr. Fleming said the reason for this is that we, are building a sustainable community. You cannot look at a two block area that is surrounded by decay and expect them to do redevelopment within that two block area and be sellable. You have to development something that is also marketable and sellable. Land assemblage is critical. Mr. Hawkins defined the proposed area of expansion as follows: Boynton Beach Boulevard to the south. The northern boundary will be left at the C-16 Canal and the western boundary will be left at 1-95; however, the eastern boundary would be expanded to the Intracoastal. The whole concept is maximizing your environment. By expanding your horizons, you are going to maximize your potential. By maximizing your potential, you are talking about economic viability and long lasting sustainability. Vice Mayor Jaskiewicz asked if the developers suggested demolishing everything in that area. Mr. Fleming advised that they did not discuss demolition or individual property. They clearly looked at it from the standpoint of critical mass, sustainability, and sellability to a user (renter or home buyer). When a home buyer makes a choice of where they want to live; they want to know whether or not the surrounding properties are under some sort of 10 MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA DECEMBER 12, 1996 control. People live out west because there is predictability in the land use and there are controls. They have safety and soundness in their investment. Everybody wants safety and predictability in development. This is what the expansion had to do with. The next important part of land assemblage is that the City must be in control and take the lead. Commissioner Titcomb asked if the City must take control regulatory-wise or ownership- wise. Mr. Hawkins said, "Both". Mr. Fleming advised that there are lots of examples around the country of cities that have became involved with land assemblage and purchase for commercial and public facility use. Once you place the public facilities there, there is no real tax benefit. If you acquire land for commercial uses and give a tax abatement in order to keep the commercial use there, the benefit is questionable. Cities have not been able to consistently draw up a large scale land assemblage process in order to create more and better consumers in their boundaries. More and better consumers means more and better people and more and better taxpayers. Not many cities have taken that leap to do this for a variety of reasons. Normally, big time residential developers do not approach you the same way someone who is looking to build an office park or warehouse would. The panel determined that your future in that area, which is much broader than the MLK corridor, had to do with creating more and better consumers. This way, your economic development has a better chance of sustainability because you have consumers for the goods and services that were neighborhood based. Manufacturing is one thing. The other sort of goods and services that make for Iiveability of a city are all the little businesses (supermarket, clothing store, florist, dry cleaners, real estate office) that you see along Federal Highway. They need to have homeowners and renters that are stable. We are also looking at mixed income. We have to be able to attract an affordable product and a variety of different types of people and incomes into the area. This area was viewed as a perfect place for new critical mass and large scale residential development which would then lead to economic development and commercial development. However, the problem is that you lack unified ownership of the property. You have acres of lots east of 1-95 that are owned by different landowners. Not many private developers will take a chance and do stealth acquisition. Some local governments in the country are starting to take the chance on residential development. They have economic models that show that redevelopment of a house that is vatued at $90,000.00 has more economic impact than some manufacturing plants because you are taking a vacant piece of property that is assessed at $4,000.00 and turning it into $90,000.00. The multiplier effect of that is tremendous. You are creating a new local taxpayer as well. So the land assembly process, who takes the responsibility for it, and how it is paid for is critical. 11 MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA DECEMBER 12, 1996 Vice Mayor Jaskiewicz asked if anyone on the panel would have serious intentions if a land mass were available. Mr. Fleming answered affirmatively. Vice Mayor Jaskiewicz said she got the impression from talking to Pulte Homes that they would like to put upscale multi- family in that area. Mr. Fleming advised that Pulte is interested because they know that with the growth restrictions in this County, the only way to turn is east of 1-95. However, they need to do it in such a way as to support the way in which they have been doing development for the last 25 years, which is a large contiguous tract of land. They are not going to retool the way in which they have been doing business. Mr. Fteming said he receives at least two telephone calls every other week from one of the individuals who participated in the panel asking him what is happening. The developers are interested because they are looking for opportunities. Mayor Taylor asked why the developers do not acquire the land if they are interested. Mn Fleming stated that they will not acquire the land because of the speculation, risk, and timing involved. When you get into individual negotiation, it is a timing issue. The City has certain regulatory powers which will allow it to do a quick take through its condemnation powers that private developers do not have. It would take private developers forever to negotiate. Mayor Taylor asked if the private developers would be willing to buy the property from the City if the City owned it, or if they are looking for the City to give them the property. MrJ Fleming said that would have to be individually negotiated. None of the developers asked the City to purchase land on a speculative basis. It would be part of the total transaction where there are certain commitments up-front in terms of dollars from the financial institutions and from the developers, certain development schedules, and certain streamlined development approval processes. Commissioner Titcomb stated that the City of Delray Beach was probably set back 8 or 10 years with a plan a decade ago that was going to take the area west of Atlantic Avenue and bulldoze a few blocks in from Swinton to F95, which created havoc and distrust in the community. He asked what we would do with the people we displace, and how we would accomplish this goal and at the same time appease the long term historical residents who have emotional attachment to their properties. Mr. Fleming pointed out that in Delray Beach, there was a change in land use from residential to commercial. In Boynton Beach, we are giving people a better place to live. Commissioner Titcomb asked if the same residents will be moved back into the area. Mr. Fleming advised that we can reserve some of the product for the existing residents. However, you want to get people who are interested in buying the product, whether it be 12 MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA DECEMBER 12, 1996 the existing residents or new residents. You cannot hold it until they make up their minds. You go with the first renter or purchaser. Mayor Taylor fe!t the residents that this would affect should be involved and have some input into what we do; however, he knows everyone is not going to be pleased. Mr. Fleming did not believe any of the developers talked about demolition. There is enough vacant property or property owned by absentee landlords; however, it has to be tied together. There are properties that are decrepit and in severe need of repair. The development community is looking at it as an opportunity for new development which creates new people and an opportunity for the existing residents to live in a better place. Rather than paying exorbitant rental rates for the dilapidated living units that they live in now, they can pay those same rates to live in a better place. Mr. Hawkins advised that the developers recognized the value of what new development is already happening on 11th, 12th, and 13th, and are willing to work within those parameters. There are people with sentimental connections to their property; however, there are certain realities of redevelopment and, in the long run, improvement and neighborhood stabilization will occur. Mr. Fleming said no one is stopping the existing property owners from doing this now; however, it is not happening. Therefore, the question is whether or not the City is going to bite the bullet for the good of the entire community. There are four or five developers ready to take advantage of whatever opportunity there is for them here. Their ideas were not earth shattering, but common sense. Mayor Taylor stated that when he attended the Forum, he was looking at it from the standpoint of commercial development. He envisioned businesses along MLK Boulevard that would bring jobs and money into the community. However, what came out of the Forum was that we need residential development. Mr. Fleming advised that consumers are needed. The people living there now do not have the purchasing power to sustain new businesses. There is no critical mass of wealth. There are lots of renters and some transient renters. There is stable home ownership there, but they are either very young or very old. The middle class has chosen to move elsewhere, and their purchasing power is much greater than those who are very old or very young. The City needs homes that will attract a variety of people. It needs people who not only clean up City Hall at night, but people who own the company that cleans up City Hall. Mayor Taylor asked if we could bring in commercial and residential in simultaneously. Mr. Fleming pointed out that businesses and goods and service producers locate next to 13 MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA DECEMBER 12, 1996 where buying power is. A mall is built next to where you think new development is going · up because of the purchasing power in the area. He advised that Peter Borges from Regional Initiative and Equity Investment, which is involved in making investments in shopping centers, said he could provide financing for a supermarket; however, he was afraid that nobody will shop there because there are not enough people to sustain it. Mayor Taylor stated that there are people there; however, they have to leave their neighborhoods to shop because there are no businesses in their neighborhoods. Mr. Fleming reiterated that there are lots of people there who do not have the purchasing power to sustain what you would like to see in terms of quality, economics, and retail and commercial development. They are either very young or very old, and the middle class, which is the big purchasing group, is moving away. Mr. Hawkins pointed out that at the Forum, Steve Feidman, President of Pulte homes, said the following: There is a lack of adequate housing and a lack of supporting amenities (supermarket, drug store, shoemaker, etc.). There is a viable economic mass out there that can support a central theme at MLK, given the appropriate delineation of whatever those things are; however, it needs critical mass. Without a critical mass of housing, you are not going to support sufficient commercial retail operations. He suggested we look beyond that and expand the concentric geography. Mr. Hawkins said the bottom line is that when Waigreens, Winn Dixie, and Albertsons contemplate locating to an area, they look at a specific one and a half to two mile area, and the numbers have to add up. Mr, Fleming advised that if you are able to create the critical mass in terms of varying income levels, different housing types, and new consumers, you do not necessarily have to have as aggressive an economic development program as you may think because entrepreneurs go where potential consumers are. Residential home building is the second largest industry, after government, in this County. All the major commercial and retail are west of the City. We are trying to duplicate that east of 1-95. Not many people have been successful in doing that. The Panel felt Boynton Beach is prime to do it because it is not as far gone as some other areas. In addition, the developers thought the view that is currently blocked on Federal Highway, east of the Intracoastal, is a tremendous asset. He advised that every retail group is geared toward homeowners, which are the biggest consumers in America, and we need critical mass in order to attract retail and commercial establishments. Mr. Hawkins and Mr. Fleming broached the subject of public/private partnerships and the City's financial commitment. Mr. Fleming advised that we have to take into consideration (1) how much money is available from private sector lenders, (2) the City's capacity to 14 MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA DECEMBER 12, 1996 accomplish, and (3) what can be expected from private developers from a risk standpoint, from a guaranty standpoint, and from a standpoint of assuming responsibility for development over time. First we have to consider the legal structure in order to look at assemblage of property. Your Community Redevelopment Agency does not have the tax increment proceeds in which to be a funding vehicle. However, it is a legal vehicle for the quick take of property. Banks can make a loan to the CRA for the acquisition, and perhaps be creative on the terms of that loan. One good thing about a residential or commercial development is that if there is a purchaser or renter, there is cash flow and a repayment source. The City can also look at the traditional bonding type capacities that it has and make a loan to the CRA for the acquisition. In addition, the City must have some sort of reciprocal commitment from private developers in terms of their investments of dollars. Public/private partnerships boil down to money, time, and a streamline approval process. Mr. Hawkins stated the City needs to contribute financially to a redevelopment project. Developers and non-profit organizations count on and expect this from a City. This is a key component of the expressed commitment from a City. The financial commitment includes: (1) land assemblage, (2) abatement of development fees, (3) cash incentives, (4) bond financing, accessing grant funds from federal and state government, (5) leveraging Tax Increment Financing dollars, and (6) explore financing partnerships with banks. With regard to accessing grant funds from federal and state government, Mr. Fleming advised that the Community Financing Consortium and some of the private developers can work for the City to access money from the state and federal government. There is a great deal of funding for residential development at the state and federal levels. There is not as much funding for commercial. The problem is that we are not aggressive enough in capturing those funds. He felt the City should not necessarily be totally responsible for capturing those funds. The City should place that within the responsibility of the other fu0ding partners, financial institutions, and developers, and have them bring that money to the table. Mr. Hawkins advised that these type of partnerships are going on all over the country and are successful. Mr! Fleming advised that the Mayor of Louisville took a chance and was able to accomplish ~n a few short years something that many cities talk about for years. There is a direct co~relation from what we are talking about and the fact that every taxpayer would like to haye another person to share the burden. In a city south of here, there were bond issues that resulted in the creation of public facilities. However, public facilities do not necessarily re§ult in increasing the tax base. Each of the homeowners there is being hit hard with high prqperty taxes. Mr. Fleming was surprised that no one is thinking about placing their taxes, their tax dollars, and their bonding capacity in ventures that result in new tax dollars being 15 MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA DECEMBER 12, 1996 created. Ninety percent of the budget comes from the residents. The bottom line is that you need more revenues, more neighbors, more partners, and more consumers. The only way you are going to do that is by putting it toward good residential development which would lead to a good neighborhood base, retail, and commercial development. Mr. Hawkins stated that the economic plan for the business side and the residential side are both sustainable. Retail applications are not sustainable income. However, strong manufacturing of business type applications and a strong sustainable residential application in areas creates sustainable income. Mr. Fleming advised that cities are very competitive in trying to attract manufacturers. If they are highly sought after, every major manufacturer looks for sufficient quality of life for their employees, a decent place for their employees to live, and whether or not there are parks, recreation, retail, etc. This is your best economic development tool. Mr. Hawkins pointed out that church, school, home, and recreation make a community, and these already exist in the defined area. The missing components are sustainability within homes and the applicable retail/commercial to go along with it. Mr. Fleming said we cannot look at one segment of our population in terms of what we need to attract to Boynton Beach. We need $150,000.00 homes as much as we need $75,000.00 homes. We need high-end luxury rental as much as we need moderate rental. That product is doable. You have a great location right off of 1-95. You have a great beach and a great mall. He pointed out that there are some major developments on Congress Avenue and Lawrence Road that are selling for $120,000.00 and $130,000.00. Mr. Hawkins added that we also have the untapped portion of the Intracoastal. It seemed to Mayor Taylor that the key is the City getting involved financially as far as land acquisition. He felt that if the City is serious, we have to consider a bond issue. The Task Force is probably working in that area. He assumed they would be coming to the Commission in the near future with some suggestions. Mr. Hawkins advised that other financing alternatives and creative financing mechanisms are available. We have to increase the valuation of the land within the CRA in order to maximize our TIF dollars because you can bond off of TIF money. Vice Mayor Jaskiewicz inquired about the 108 grant. Mr. Fleming stated that it is a future advance against your CDBG entitlement. You are about to become an entitlement city, which will bring in another level of flexibility. You do not have to pay anything back for five years. First, the acquisition of the property should only take place if you have executed a 16 MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA DECEMBER 12, 1996 lien. Secondly, it does not necessarily have to be all a bond. You can mix and match five different sources of money in order to get it done, but it has to be done quickly and efficiently. You cannot over buy the land and you cannot let emotions enter into it because it is a dollars and sense scenario for the good of the community. The things that the panet came up with pay for themselves and create another tax base. Commissioner Tillman inquired about land assemblage and cash incentives and asked if there can be a starting point. Mr. Hawkins said there can be a starting point, but it has to be ongoing, and you need a master plan. He referred to one area that is 23.95 acres, which is a drop in the bucket when a developer looks at potential development. Developers like to see hundreds of acres. The 23.95 acres could be a starting point; however, the master plan has to show that it has to keep moving. You have to develop critical mass of population with economic buying power and neighborhood stability in order to attract the commercial and retail that you want. Mr. Fleming advised that some of the individuals at the Forum believed the City should create the master plan because this saves them time and effort. However, he felt the professional developers should be responsible for creating the master plan. He thought it would be better for the City to respond to the master plan rather than create it. He suggested reconvening four or five of the developers and have them tell the City what is achievable so that the City does not have to hire somebody to do that. Commissioner Bradley advised that part of the scope of our vision planning process is to look at housing stocks in the MLK corridor and on Boynton Beach Boulevard. He was pleased to hear that we are going to consider the whole area. He felt that made a lot of sense; however, he wondered if there is a way to save some money or time by looking at the scope of work that the visions planning process is going to be doing when we select that company to pinpoint this area of emphasis. He pointed out that there is going to be a lot of overlap between the master plan and the information that comes back about that area. Mr. Hawkins stated that timing is everything. Qnce you decide to do something, you cannot sit around and think about it. You cannot allow somebody to take two years to develop a master plan. You have to look at target areas. Each target area may have its own plan, but all the target areas have to be planned. The idea is to have a great plan, yet still have things going on in each one of those components. Mr. Fleming stated that the planning process and the visioning process are useful for a risk taker only from the standpoint of establishing predictability. Sometimes the people who I7 MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA DECEMBER 12, 1996 are doing the visioning are not the people who are buying the product. You have to plan for the people who are buying the product or you will quickly go bankrupt. You have to look at the visioning process from the standpoint of establishing predictability, decision making for government, and what is happening around you. Predictability is linked directly to marketing and selling your product to a user, whether a renter or home buyer. If the developer knows what is going to happen in three or four years, it is easier to market and sell the product. Then you can transfer that to the consumer. Also, no one wants to get caught up in changes in Commissions where you have a Commission who is not as in tune with what you are trying to accomplish. Mayor Taylor asked if the panel discussed the value of expanding the CRA area. Mr. Fleming advised that they only talked about the impact of the tax increment proceeds. The valuation of both commercial and residential is not maximized. We have to work on increasing the valuation of what we have. He did not think expanding it right now will meet the goal of increasing valuation. Mayor Taylor pointed out that it may increase the ability of what we want to do in those areas from an assembly standpoint. Commissioner Tillman wouId like to know how much acreage is enough to start with. He would like a time line. He would like to know how much assemblage will be required, and he would like additional information about cash and other incentives that may come from the City and/or other financial lenders. He would also like to see a scenario or model with every component in place. Mr. Fleming pointed out that this is a master plan for development. He said you want a response to a proposal. You do not want to create a plan yourself. You want someone to submit a master plan to you and respond to it by letting them know what you can or cannot afford. A gentleman in the audience who owns apartments on MLK Boulevard in Cherry Hill said it is easier for him to rent apartments in Cherry Hill than in the MLK neighborhood. He said it is an undesirable place to live because a crowd of people hang out at the bar on the corner of Seacrest and MLK Boulevard. These are not the people you are targeting. Also, this area contains transients. Mr. Hawkins advised him that the City knows it has to clean up that area. We can do that through the traditional method of law enforcement or through development/redevelopment. Mr, Hawkins talked about the role of the CRA. The Commission sits as the CRA; however, an independent body outside the political arena can be appointed as the CRA. Many jurisdictions are successfully using those independent bodies to do some of the acquisition, negotiating, and planning. Professional staff within the City can assist the CRA. He 18 MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA DECEMBER 12, 1996 pointed out that developers like to move along with development outside of the political arena. Mr. Fleming said he WOuld love to get involved in putting a financial package together and applications for funding from the state and federal government. He recommended reconvening the panel and negotiating with them. Bring them in as a group initially, and then schedule individual meetings. Ask them to borrow a staff person for one week. Have that person look at the City and write a master plan based on what their company can do in Boynton Beach. They will tell you exactly what you need in dollars. Commissioner Bradley asked if it is best to put together a hypothetical assemblage that is a specific size. Mr. Fleming said they will do that and then the City can tell them whether or not that is doable from a financial standpoint. Commissioner Bradley asked if that would be a much longer process from a time standpoint. Mr. Fleming did not know; however, he said the panel would like the City to hire someone to do a master plan. They want control, but they do not want to spend a lot of time and money doing it if the City is not serious about moving forward. Mri Fleming advised that Pulte is clearly a home ownership developer and is going to look at townhouses and home ownership. Trammel Crow knows rental and will look at where they can build a couple of 300 unit upscale apartment complexes. Syntex is going to look at individual, detached, single-family homes. Therefore, the City may be in a position where it is dividing up land uses, which is great. Mr. Hawkins stated that this means the City will have more partners and better financing opportunities. Commissioner Bradley spoke of Phase II and the affiliated properties around the Marina project. He did not want to take away from the endeavor that is going forward with Mr~ Garcia. However, when you look at the big picture and get all the players and resources banging away, good things can happen. He looked forward to hearing what staff has to bring forward at some point about Phase II. A lady in the audience said she was involved in the planning of her City, and many of the home ownership buildings that were built are still in excellent condition. Not so with the rental units. She suggested that a provision be made so that some of the rent goes toward equity of the rental buildings. Mr. Hawkins said this is one of the housing opportunities that you must continue to explore. However, this is where planning comes into play. We have been encouraging more home owner application. However, there are multi-family home ownership applications, like condominiums, duplexes, quadruples, etc. that are available. You can rent them and turn them into home ownerships through leasing options or equity. 19 MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FLORIDA DECEMBER 12, 1996 There are ways to make sure that it is a stabilized environment, especially in the design phase. Mr. Hawkins thanked the Commission for the opportunity to discuss these issues. He requested another workshop to discuss what the entitlement process is going to entail. A date for this workshop will be chosen at the next Commission meeting. Mayor Taylor thanked Mr. Fleming for being open and sharing his thoughts, ADJOURNMENT There being no further business to come before the City Commission, the meeting was adjourned at 9:45 p.m. CITY OFBOYNTON BEACH Mayor ATTEST: Cit~'Clerk Recording Secretary (FOur Tapes) Commissioner C,/~issioner 20 DEVELOPMENT ORDER OF THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA APPLICANT: Sheryiyn McAlister APPLICANT'S AGENT: Sherylyn McAlister DATE OF HEARING BEFORE CITY COMMISSION: 1212196 TYPE OF RELIEF SOUGHT: Master plan modification to change the existing non-zero setbacks for pools, jacuzzi or spas and screen roof enclosures from 15 feet to 10 feet - Communities of Citrus Glen, Lawrence Road LOCATION OF PROPERTY: Citrus Glen, Lawrence Road, Boynton Beach, FI DRAWING(S): SEE EXHIBIT "B" ATTACHED HERETO. THIS MATTER came on to be heard before the City Commission of the City of Boynton Beach, Florida on the date of hearing stated above, The City Commission having considered the relief sought by the applicant and heard testimony from the applicant, members of city administrative staff and the public finds as follows: 1. Application for the relief sought was made by the Applicant in a manner consistent with the requirements of the City's Land Development Regulations. The Appli,qant v HAS HAS NOT established by substantial competent evidence a basis for the relief requested. 3 The Appli~,a'nt's application for relief is hereby v' GRANTED subject to the conditions marked as "include" in Exhibit "E" hereto. DENIED 4. This Order shall take effect immediately upon issuance by the City Clerk. 5. All further development on the property shall be made in accordance with the terms and conditions of this order. 6. Other: ~{/~' DATED: December 3, 1996 City'Clerk City AttOrney LOCATION MAP CITRUS GLE PUD L. UI; !~,O AG PUD I..UI: 4,1 GRO IRSERIES" I..UI:4.0 PUD . LUI: 4 LUI ~IIAA 1/8 40O. '8O0 ~¢~AuSALITO LUI:5-O MILE,' FEET EXHIBIT "E" Conditions of ADoroval Project name: Citrus Glen File number: MPMD 94-008 Reference: The plans consist of 1 sheet identified as 2nd Review, Master Plan Modification New Site Plan. File #MPMD 94-008 with a September 17, 1996 Planninq and Zonin~ Department date stamp markino. DEPARTMENTS I INCLUDE tREJECT ~UBLIC WORKS Comments: NONE UTILITIES Comments: 1. Due to existing easements the following lots may not be allowed to have the requested reduction in side yard setback: Lot #1, 5, 7, 13, 23, 28, 31, 3743, 46, 48, 50, 54, 61, 68, 75, 82, 89, 93, 97, 100, 141,144, v/ 148, 153, 159, 163, 172, 176, 181,191, and 194. As this proposal was submitted for the entire PUD, the request cannot be approved due to the Dresenc¢. ef utilities in the side vards of these lots. FIRE Comments: 2. Many of the side yards have extra foliage, fences, etc. that may intrude on the Fire Department's access. All models with the exception of the v' "Courtyard" models seem to have completed their desired improvements. 3. Noting the situation with the courtyard models we have no further objections to the request for a ten (10') foot side yard (specifically lots - V 2, 11, 12, 14, 16, 18, 19, 21, 53, 63, 99, 126, 131-138, 143, 145- 147,149-152, 154, 156, 157, 190, 192, 193, 195, 196. POLICE ~emments: NONE DEVELOPMENT DEPARTMENT Comments: NONE PARKS AND RECREATION Comments: NONE FQRESTER/ENVIRON MENTALIST Comments: NONE PLANNING AND ZONING Comments: 4. The chart listing amended setbacks indicates different requirements for pools/spas/jacuzzis and screen enclosures. Illustrate these different setback requirements on separate drawings for the following categories: v,/ a. building b. pool/spa/and jacuzzi, and c. screen enclosure 5. Provide a statement on the master plan that within the 10 feet, non-zero lot line setback area trees, decorative elements and other access obstructions do not exist or, if they do, will be removed or relocated prior to receiving a building permit for a pool, spa, jacuzzi, or screen enclosure. 6. To maintain an unobstructed access to the lot it is recommended that a 10 feet wide access easement be established and dedicated along V' the non-zero lot line at time of permit. 7. Provide a statement by a registered engineer that the drainage can be handled by the existing drainage system when amenities on all lots are constructed. 8. It is recommended that modified setback requirements, as proposed by petitioner will apply only to the following courtyard houses, as these are the only courtyard houses that currently have no existing utility easements in the side yard and pose no Fire Department access problems: 2, 11, 12, 14, 16, 18, 19, 21, 53, 63, 99, 126, 131-138, 143, 145-147 149-152 154. 156. 157 190 192 193. 195and 196 ADDITIONAL PLANNING AND DEVELOPMENT BOARD CONDITIONS 9 To be. determined. ADDITIONAL CITY COMMISSION CONDITIONS 10. To be determined. /bme d:\citrglen\cond app r.wpd ADDITIONAL CONDITIONS FROM COM~SSION MEETING 1. lot