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Minutes 06-08-04 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY REGULAR MEETING HELD IN COMMISSION CHAMBERS, CITY HALL, BOYNTON BEACH, FLORIDA ON TUESDAY, JUNE 8, 2004 AT 6:30 P.M. Present: Jeanne Heavilin, Chairperson Henderson Tillman, Vice Chair James Barretta Alexander DeMarco Don Fenton Absent: Larry Finkelstein Charlie Fisher Douglas Hutchinson, CRA Director Lindsey Payne, Board Attorney Susan Vielhauer, Controller I. Call to Order Chairperson Heavilin called the meeting to order at 6:33 p.m. II. Roll Call The Recording Secretary called the roll and declared a quorum was present III. A. None Agenda Approval Additions, Deletions, Corrections to the Agenda Bo Motion Vice Chair Tillman unanimously carried. Adoption of Agenda moved to approve. Motion seconded by Mr. DeMarco IV. Consent Agenda A. Approval of Minutes of May 11th Meeting and May 20th Workshop B. Financial Report and Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida June 8, 2004 Vice Chair Tillman requested that on page 5324 of the agenda, which are the Minutes of May 11, 2004, in the third full paragraph, "Chair Tillman" should be changed to "Vice Chair Tillman." Mr. Hutchinson reported that there was a typo in the financial reports and new reports were distributed. Motion Mr. Fenton moved to approve the Consent Agenda. Motion seconded by Vice Chair Tillman and unanimously carried. Chairperson Heavilin introduced Commissioner Ensler and Assistant City Manager Dale Sugerman. V. Public Audience None VI. Public Hearing Attorney Payne administered the oath to all persons who would be testifying. Old Business A. Site Plan Time Extension Project Agent: Owner: Location: Description: Schnars Business Center (SPTE 04-003) (Tabled May 11th) James W. Mahannah, P.E., Schnars Engineering, P.E. 924 Venture, L.L.C. 924 North Federal Highway Request for a one (1) year time extension of the site plan approval granted on February 18, 2003, from February 18, 2004 to February 18, 2005 Motion Vice Chair Tillman moved to remove the item from the table. Motion seconded by Mr. DeMarco and unanimously carried. Maxime Ducoste, Planner, presented the item on behalf of staff. The item was tabled at the last meeting because the applicant was not present and the applicant is present tonight. The project is for a mixed-use office and retail building at the southeast corner 2 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida June 8, 2004 of NE 9th Avenue and North Federal Highway. Staff has reviewed the request and is recommending approval of the site plan time extension for one year. There is an additional condition that the applicant must obtain traffic concurrency approval prior to the issuance of a building permit. The site plan is for a three-story, 8,754 square foot office and retail building. Jeff Schnars, 951 Broken Sound Parkway, Suite 320, Boca Raton, assumed the podium. Vice Chair Tillman asked the applicant why he was requesting a one-year extension. Mr. Schnars stated that they were not ready to build due to market conditions, nor have they been able to find any tenants. Vice Chair Tillman inquired if they would be able to move forward within one year. Mr. Schnars anticipated that they would, but currently there are no tenants signed up. If they could not lease the building, they would not build it. Mr. DeMarco inquired about the market conditions mentioned by the applicant, and Mr. Schnars responded that they cannot lease the building at the rate they need to make it profitable. Mr. Fenton asked about their marketing efforts and Mr. Schnars responded that a broker has been hired and ads have been placed in trade magazines. Mr. DeMarco requested to see a copy of the ad and Mr. Hutchinson stated that it was available in the CRA office. Vice Chair Tillman inquired if Mr. Schnars thought that market conditions would improve. Mr. Schnars would like to see other things take place downtown so that their property could also move forward at the lease rate they need. Chairperson Heavilin inquired if they intended to sell the project if they could not lease it. Mr. Schnars stated that they would entertain an offer if someone wanted to move forward with the project. Vice Chair Tillman inquired if they agreed with the traffic concurrency requirement and Mr. Schnars stated that they did. Chairperson Heavilin opened the public hearing. Since no one wished to speak, the public hearing was closed. Mr. Barretta noted that when this project was approved one year ago, the CRA did not have any design criteria and still does not have any. He asked the applicant if construction did not start within six months, would they be willing to come back for review when the design criteria is in place to determine whether the building conforms to the criteria adopted. Mr. Schnars was not in favor of having to come back to the Board for any kind of design review and is only requesting a one-year extension. Motion Vice Chair Tillman moved to approve the one-year extension. 3 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida June 8, 2004 Mr. DeMarco asked Vice Chair Tillman if he would amend his motion to six months and Vice Chair Tillman stated that he would not. Motion seconded by Mr. Fenton and carried 4-1 (Mr. Barretta dissenting). New Business A. Annexation Project: Agent: Owner: Location: Waterside (ANNEX 04-002) Carlos Ballbe, Keith & Ballbe, Inc. Hector Garcia, Southern Homes of Palm Beach, LLC East side of South Federal Highway, between Palmer Road and Chukker Road Description: Request to annex 7.30 acres of property in connection with the request to build 115 fee- simple townhomes and related site improvements Project: Agent: Owner: Location: Waterside (LUAR 04-002) Carlos Ballbe, Keith & Ballbe, Inc. Hector Garcia, Southern Homes of Palm Beach, LLC. East side of South Federal Highway, between Palmer Road and Chukker road Description: Request to amend the Comprehensive Plan future Use Map from Commercial High Intensity and Medium Residential (Palm Beach County) to Special High Density Residential; and Request to rezone from General Commercial (Palm Beach County) and Multi-Family Residential to Planned Unit Development (PUD) Proposed use: 115 unit townhouse community Mr. Hutchinson noted that there was a letter from the applicant requesting that these two items be tabled to the next meeting. 4 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida June 8, 2004 Motion Vice Chair Tillman moved to table Items A.1 and B.1 to the July 13, 2004 meeting. Motion seconded by Mr. Barretta and unanimously carried. Project: Agent: Owner: Location: Description: Florida Collision Center (LUAR 04-005) Carl A. Cascio, P.A. Boynton Beach RE Enterprises, Inc. 902 NE 3rd Street Request to amend the Comprehensive Plan Future Land Use Map from General Commercial (GC) to Industrial (I); and Request to rezone from General Commercial District (C-4) to Industrial District (M-l) Proposed use: auto body repair, storage and towing Hanna Matras, Planner, presented the item on behalf of staff. The applicant is requesting to rezone the property from general commercial to industrial and from C-4 to M-I. Staff recommends approval of the amendment, which is consistent with the Comprehensive Plan and the Heart of Boynton Community Development Plan. The applicant currently owns the land east of the subject property, which is zoned industrial. By approving the rezoning it would make the zoning uniform for the entire property and would contribute to the supply of industrial land suitable for small businesses. Ms. Matras pointed out that M-1 requires adequate screening for storage of vehicles. The applicant has been informed of this requirement and is agreeable to supplying adequate screening by utilizing landscaping. Chairperson Heavilin inquired if this was a condition of approval. Ms. Matras pointed out that this is a requirement of M-1 zoning and does not have to be a condition and could be adopted by Ordinance. Carl Cascio, 525 NE 3rd Avenue, Suite 102, Delray Beach, represented the applicant. Mr. Cascio pointed out that there is screening on the property, but it is not landscaped. Andrew Cohen, 246 Lake Eden Way, Delray Beach, purchased the property that was an eyesore. He has cleaned it up, fenced and screened it in. Mr. Cohen said that he agreed to add the landscaping and has hired a landscaper for this purpose. He anticipates that he will have to add 400 hedges around the property, which is a substantial amount of money and he is willing to do what is necessary. Mr. Cohen noted that the Police Department visited his establishment today, and they informed him that if the property were screened in it would become a security issue. He informed them that if they had a problem with the screening, they should speak with City 5 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida June 8, 2004 staff. He anticipated that it would take between six to eight weeks to complete all the landscaping work and irrigation is already in place. Mr. Cascio asked about the screening along the western side of the property that abutted a daycare center and if the City was requiring that this side be landscaped as well. Ed Breese, Senior Planner stated that since this property is in the Heart of Boynton they are requiring landscaping on all sides. Staff is agreeable to allowing the applicant enough time to put in the landscaping and felt that 90 days after the City Commission hears the item would be appropriate. Staff will handle this as a minor site plan modification to be reviewed by staff. Mr. Fenton inquired if staff spoke to the Police Department regarding the comments made by the Police Officers and Mr. Breese stated they did not because the screening is required. Attorney Payne pointed out that the item before the Board deals with a Comprehensive Plan Amendment and rezoning and is not a site plan issue. Chairperson Heavilin opened up the public hearing. Sarah Williams, 1331 SW 27th Avenue, Boynton Beach, was administered the oath by Attorney Payne. Ms. Williams noted that she received notice because she has some properties that are located within the notice area. One piece of property that she owns is adjacent to the site and she is concerned that the zoning is being changed from residential to industrial. Ms. Matras pointed out that the zoning is being changed from General Commercial to Industrial and was not zoned Residential. Ms. Williams questioned why this property was zoned Commercial when her property was zoned Residential. Also, she thought that this might be detrimental to the Heart of Boynton Plan and the existing properties. She noted that there was a daycare next to the subject property and Day Start Academy at St. John's Missionary Baptist Church will be opening up soon. Ms. Williams asked if her five unit property was ever destroyed, would she still be able to replace it with residential. She also pointed out that industrial uses might result in physical hazards in the area and questioned whether industrial use would be aesthetically pleasing. Ms. Matras explained that C-4 zoning includes heavy commercial use and the current use of the property is currently allowed under C-4. Ms. Williams inquired how many properties would be affected by this change, and Mr. Hutchinson pointed out that the rezoning would only apply to this one lot on NE 3rd Street. There is a plan that was approved within the industrial corridor and it would not spread any further than this lot. Chairperson Heavilin closed the public hearing. 6 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida June 8, 2004 Mr. DeMarco inquired if the rezoning would affect the new school that this Board recently approved, and he was informed that this school is north of this property and the rezoning would have no impact upon the school. Quintus Greene, Director of Development, explained that item was to rezone one lot that is currently adjacent to an Industrial zoned lot in a planned industrial corridor. No other properties would be affected. Staff is trying to minimize the impact upon the neighborhood with the screening. Mr. DeMarco noted that one of the uses of the property would be auto body repair and he felt that this would be noisy. Chairperson Heavilin said that the property is already doing repairs. Mr. Cascio stated that they want to unify title to the parcels and the only way this could be done was to make the zoning and land use the same. Motion Vice Chair Tillman moved to approve. Motion seconded by Mr. Fenton and unanimously carried. C. New Site Plan Project: Agent: Owner: Location: Phillips Industrial Lot 4 (NWSP04-008) John Phillips Phillips Equipment 1040 West Industrial Avenue Description: Request for new site plan approval for an outside storage lot for RV, boats and trailers and related site improvements on a 1.44-acre parcel in a M-1 zoning district Maxime Ducoste, Planner, presented the item. The property is located on West Industrial Avenue, west of the C.S.X. Railroad right-of-way. There are industrial uses to the north and south of the property and residential on the west side zoned single family R-lA. There will be one ingress/egress along West Industrial Avenue that will have automated 15' sliding gates. This project will be connected to Phillips Industrial Park, which is the project to the north. Staff is requiring the applicant to obtain a Unity of Title and Cross-Access Agreement as conditions of approval because both projects will share driveways and an office. The Land Development Regulations require a minimum of four parking spaces, but since 7 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida June 8, 2004 there is no building proposed for the project, there will be sufficient parking when the property comes under the Unity of Title. Mr. Ducoste stated that the design of the project would be compatible with the surrounding areas by utilizing color-coordinated fencing and landscape buffering. The property will be used to provide slips for outdoor storage of recreational vehicles. Staff is recommending approval contingent upon all comments contained in the conditions of approval in Exhibit C. Chairperson Heavilin inquired why the applicant was obtaining a Unity of Title. Mr. Ducoste stated that this was necessary because the office being used for the outdoor storage business is located in one of the bays in Phillips Industrial Park. John Phillips, 6900 Carissa Circle, Lake Clarke Shores, stated that he is in the process of constructing a 12,000 square foot warehouse with 23,000 square feet of outside storage for heavy equipment. Since he owns both lots, he determined that as Boynton Beach continues to add more boat slips, this property would be a good place for people to store their recreational boats and RVs. Through the Unity of Title he would be able to operate the outside storage while maintaining his office in the building on the other lot. Mr. Phillips stated that he agreed with all staff conditions and presented photographs of the building that is currently under construction. The photographs are on file in the City Clerk's Office. Motion Mr. Fenton moved for approval, subject to all staff conditions. Motion seconded by Vice Chair Tillman and unanimously carried. D. Site Plan Time Extension Project: Agent: Owner: Location: The Arches (SPTE 04-004) Ryan Weisfisch, Boynton Ventures 1, LLC Multiple Owners Southwest corner of Ocean Avenue Federal Highway and Description: Request for a one (1) year time extension of the site plan approval granted on June 3, 2003, from June 3, 2004 to June 3, 2005 Eric Johnson, Planner, handed out a condition of approval that was set out in a Memorandum from Peter Mazzella, Deputy Director of Utilities, to Michael Rumpf, Director of Planning & Zoning, dated June 4, 2004. 8 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida June 8, 2004 Mr. Johnson noted that The Arches site plan is due to expire on June 3, 2003 and the applicant is requesting a site plan time extension to June 3, 2005. The applicant submitted the application in a timely manner, staff reviewed the request, and is recommending approval, subject to the condition contained in Mr. Mazzella's Memorandum. The property is located at the southwest corner of Ocean Avenue and Federal Highway and is comprised of approximately two city blocks. Mr. Johnson pointed out that the applicant's traffic concurrency has been approved until 2005 and applies to 59,000 square feet of retail and 257 dwelling units with an indoor parking garage. The site plan would still be subject to the original conditions of approval, plus the new one. Mr. Johnson reported that the applicant is aware of this new condition and has agreed to it. Ryan Weisfisch, of Boynton Ventures 1, LLC, 1250 East Hallendale Beach Boulevard, Suite 305, Hallendale, Florida, informed the Board that he had been a partner with Nancy Graham and Kevin Lawler when the original site plan was submitted, but they are no longer partners in the project. Mr. Weisfisch explained that there is an environmental issue surfaced that resulted in a delay of the project. He was anxious to get the project off the ground, but he cannot proceed until this issue is resolved. He pointed out that the environmental issue is also a State issue, and they have been working with the State to get it resolved. Mr. Weisfisch stated that legal issues were involved as well. Mr. Fenton inquired what type of environmental problem was uncovered, and Mr. Weisfisch stated that there were benzene levels in excess of the acceptable amount. Mr. Weisfisch said that a Plan of Remediation has been submitted to the State and they are waiting for approval. However, the seller of the property will not allow him to access the property. Mr. Weisfisch pointed out that they are contract purchasers. They do not own the site at this point and the matter is now in litigation. Vice Chair Tillman pointed out that the litigation could drag on for a long period of time and could go beyond one year, to which Mr. Weisfisch agreed. Vice Chair Tillman inquired if the applicant had any remedies that he thought would cause the situation to change and would he eventually be able to purchase the property. Mr. Weisfisch reported that a judge heard the case on June 4th and they expect a ruling in their favor hopefully this month. In that event, they would be able to remediate and then gain access to the property to clean up the issues and close on the purchase. Mr. Fenton asked who was responsible for cleaning up the environmental problem and Mr. Weisfisch stated that it was the responsibility of the seller, but he would be willing to work with the seller to ensure that the property is clean. They approached the seller several times offering their assistance. 9 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida June 8, 2004 Mr. DeMarco inquired if the applicant were in fact the buyer. Mr. Johnson explained that the documents that the applicant provided staff were forwarded to Legal. Legal reviewed all the items and determined that the paperwork submitted was adequate and sufficient so that the project could continue to move through the process. Attorney Payne pointed out that the Court would determine whether the contract is valid. For purposes of tonight, this is the proper applicant. Mr. Barretta inquired what stage the construction documents for the project were in. Mr. Weisfisch stated that they are about one-third done and have not been completed. He has no plans to make any major changes and would be coming to the Board with minor changes. Mr. Johnson noted that them is an approved site plan and any modification to the site plan would have to come to Planning and Zoning. Staff would determine whether the changes were major or minor. Mr. Fenton inquired about the status of the incentives given the applicant if the extension was granted. Mr. Hutchinson explained that the contract is tied to the site plan approval process from the City, both for modification and approval. The applicant would be applying for an incentive package extension, but the City has to approve the site plan extension first. Mr. Hutchinson has already requested that the applicant provide the incentive package extension request in writing. Chairperson Heavilin asked the applicant if he agreed to pay the reservation fee for the water and sewer capacity and Mr. Weisfisch responded that he would. Chairperson Heavilin noted that this had been a condition that it be paid within 30 days of site plan approval by the City Commission, which was almost one year ago. She asked the applicant why this fee was never paid. Mr. Weisfisch thought that his previous partners had paid it. It will be corrected prior to the June 15th City Commission meeting. Chairperson Heavilin opened up the public hearing. Since no one wished to speak, the public hearing was closed. Mr. Barretta proposed a condition that any site plan modification be brought back to the Board. There was a consensus on the Board that this be a condition of approval. Mr. Johnson inquired what the Board meant by a "modification." Chairperson Heavilin responded that it would be any change to what had been previously approved by the Board. Mr. Johnson inquired if it was a "minor" site plan modification, as determined by staff, would it have to come back to the Board, or would it be a "minor" modification, subject to a courtesy review by the CRA Board. Mr. Hutchinson inquired if the Board wanted to review any changes as a courtesy review. Mr. Barretta wanted the Board to have the authority to review any change and to impose conditions. Chairperson Heavilin inquired if this would be a condition of the site plan extension or the incentive plan extension. Mr. Johnson recommended that if staff determines that it is 10 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida June 8, 2004 a minor site plan modification, it would go before the Board for Board review and approval. Staff would not approve the minor modification until the Board reviews it, to which the Board agreed. Mr. Fenton did not feel that a one-year extension should be granted and he recommended approving a six-month extension. He wanted to see the project moved along as soon as possible. Mr. DeMarco pointed out that when Courts are involved it is hard to know how long it would take to get the issue resolved. Mr. DeMarco recommended adding the words "one year or sooner" in the motion. The applicant stated that he would like to move as fast possible, but noted he was dealing with a reluctant seller and there were a lot of issues involved. He requested that he be granted the one-year extension. Mr. Fenton felt that "or sooner" would not apply in this case since the applicant could have up to one year. Motion Mr. Fenton moved to approve the extension of the site plan approval for The Arches for six (6) months. Mr. Barretta agreed to second the motion if Mr. Fenton would agree to add the condition that any site plan modifications would come back before this Board. Mr. Fenton agreed to amend his motion to include this condition. Motion seconded by Mr. Barretta. Mr. DeMarco inquired if the applicant could come back after six months and apply for another extension and was informed that he could. Chairperson Heavilin requested that the motion also be subject to condition #6 regarding the water and sewer reservation fee. Mr. Fenton agreed to add condition #6 contained in the Memorandum dated June 4, 2004 from Peter Mazzella to Michael Rumpf to the motion. Mr. Barretta seconded the amended motion. Mr. Johnson added that if it were a minor site plan modification, staff would withhold issuance of a minor modification approval letter until the CRA has approved it, and Mr. Fenton stated that this was the intent of his motion. Chairperson Heavilin would like to grant the one-year extension due to the environmental issues. She did not feel that 12 months was unreasonable. Vote Motion carried 4-1 (Chairperson Heavilin dissenting). VII. Director's Report Mr. Hutchinson noted that his report was included in the agenda packet. He also reported on the following: 11 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida June 8, 2004 The final SFWMD permitting papers were signed this afternoon for the Boynton Beach Boulevard/Promenade/Riverwalk. He anticipates that they would be pulling full permits with the contractor and City staff. He thanked Burkhardt Construction, City staff and Jonathan Ricketts for their assistance. A letter from the Community Economic Development Committee to Chairperson Heavilin was distributed. This is a countywide Committee and they would like a representative from this Board to serve on the Committee. The representative could either be staff or Board member. He felt it was important that this Board have a representative on the Committee. Motion Vice Chair Tillman nominated Douglas Hutchinson, CRA Director, to be this Board's representative on the Community Economic Development Committee. Motion seconded by Mr. Barretta and unanimously carried. Mr. Hutchinson urged Board members to review the Annual Report because he would like to go to print as soon as possible. The wayfinding signs are being reviewed for permitting with the City. Four Police Officers have been selected for the CRA Police Pilot Program and the contract will be presented to the Board at the July meeting. Mr. Hutchinson reported that the Marina job site and the CRA office building were vandalized with graffiti and there has also been vandalism at St. Mark's Church. He pointed out the need for these patrols as soon as possible. The Officers that have been selected will be at the July meeting. Mr. Hutchinson pointed out their professionalism and ability to work with the community. Mr. DeMarco recommended that the advent of these Officers downtown should be disseminated to the public, which would be good publicity for the CRA and the City. The draft Museum Feasibility Study should be received by the beginning of next week that will contain two options. As soon as it is received, it will be forwarded to Board members. Mr. Hutchinson anticipated that the final study should be available within four weeks. The CRA logo has been finalized and will be put on shirts and hats. Board members and staff will each receive one shirt and one hat. If any Board member would like more than one shirt, please let Mr. Hutchinson know. The shirts will also be used as a marketing tool. VIII. Old Business None 12 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida June 8, 2004 IX. New Business A. Consideration of Fa(;ade Grant Application for Scully Burgers Mr. Hutchinson noted that the applicant was present to answer questions. He pointed out that a lot of work went into improving the building and the applicant has presented a wonderful project. Motion Mr. Fenton moved to approve the Fa(;ade Grant Application for Scully Burgers in the amount of $10,498. Motion seconded by Mr. DeMarco and unanimously carried. Mr. Hutchinson reported that the application to the County for a grant program for economic development and job creation for the Boynton-Delray Academy was approved. This will bring a gmat deal of money into the area and will require a one-third match. Chairperson Heavilin inquired if they could put up a CRA sign at Scully Burgers while the work is being performed. Mr. Hutchinson stated that Ms. Gray is working on this and applicants are being asked to allow a sign to be posted. Chairperson Heavilin thought that this was wonderful publicity for the City and the CRA. Mr. Hutchinson noted that the CRA is accomplishing a great deal with their grant programs. B. Consideration of The Urban Group's Relocation Services Mr. Hutchinson referred to the handout presented to the Board. He noted that there has been a reduction in the estimated services. It had been estimated at $221,000 and has been decreased to $207,000. It is important that these services be implemented so that they could move forward with the acquisition of the properties. There is an offer that will be coming before the Board tonight and they need these services in order to move forward with the purchase. The needs assessment has been completed and the Urban Group needs to be authorized to deal with the relocation fees and make the offers based upon the relocation needs assessment. Chairperson Heavilin inquired if the City was using HUD money for this project. Mr. Hutchinson stated that HUD money was never used for this project. He explained that the City receives funds from HUD and CDBG money is being used in the Head of Boynton Plan. Quintus Greene, Director of Development, explained that Boynton Beach receives approximately $630,000 yearly in CDBG money from HUD. The principal target ama for these funds is the Head of Boynton and HUD funds are being spent in the Head of Boynton area. The City has applied to HUD for a $2.5 million Section 108 loan, which is 13 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida June 8, 2004 paid back to HUD from the annual block grant allocation. This will depend upon the Federal budget, since the President is recommending the abolition of the Section 108 Loan Program. Whether or not they do or do not receive the Section 108 loan, there will be CDBG funds spent in the Heart of Boynton. Chairperson Heavilin asked about the relocation process that is required. Mr. Hutchinson explained that when an offer is made to purchase property under this program, it has two elements. One is the offer to purchase the property at the appraised value and the second one is the relocation entitlements as set out by statute. The relocation entitlements are only estimates based upon a certain formula. Therefore, each time an offer to purchase comes before the Board, it would also come with an offer for the relocation entitlements. Mr. Fenton noted that the purchase offer that the Board would be considering tonight does not include any relocation money. Chairperson Heavilin noted that this was the next item. Chairperson Heavilin pointed out that almost 50% of the relocation costs are fees and requested that this be justified. Mr. Hutchinson noted that the fees would probably be collected over 15 to 24 months and The Urban Group would be performing a great deal of work. He also noted that The Urban Group is following HUD guidelines for relocation. If The Urban Group does not do the task, they would not get paid. Mr. Hutchinson explained that each project will be dealt with individually and the Board will review them as they are presented. Vice Chair Tillman was not in favor of retaining The Urban Group for $200,000 before anyone is actually relocated. He also remarked about the fees being charged for personnel and thought that the Board should consider hiring someone on staff to perform this work. Mr. Fenton inquired if there were no relocation fees involved in a purchase, would the $207,000 fee be reduced by $6,597 each time. Mr. Hutchinson stated that it would depend on how much time The Urban Group spent on getting the contract signed and if it took less time, then the fee would be reduced. Mr. Fenton also asked that if a person did not want the relocation money, how much time would The Urban Group devote to the purchase. Diane Mason, Relocation Administrator for The Urban Group, 1424 Andrews Avenue, Ft. Lauderdale, stated that if there were no relocation involved in the purchase of a parcel, they would not charge any fee on this aspect of the purchase and $6,597 could be deducted from their fee. Mr. Hutchinson also pointed out that these were estimates and things may move more quickly than anticipated. Mr. Hutchinson pointed out that The Urban Group has done this type of work for the City many times. The City had gone out to bid to find someone to perform these services and The Urban Group came out as best qualified with the best pricing and the CRA has piggybacked the City's contract. Chairperson Heavilin inquired if the Board approved the contract, how quickly would they start to review contracts. Ms. Mason stated that the contracts could be presented to the Board immediately. 14 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida June 8, 2004 Motion Mr. Barretta moved to approve the relocation package as presented and to hire The Urban Group to make the offers for the relocation compensation fees according to HUD guidelines. Motion seconded by Mr. DeMarco. Vice Chair Tillman asked what the timeline was on the contract and Mr. Hutchinson stated until the job is done. There are 31 properties that have been identified and the life of the contract would be to acquire those 31 properties. Vice Chair 'l-illman would like to make the contract term for one (1) year. Chairperson Heavilin asked Mr. Sugerman to address this. Dale Sugerman, Assistant City Manager, stated that at a prior Board meeting, the CRA asked the City Commission to move forward with eminent domain actions on these 31 parcels. This process has not been instituted yet, and they would like The Urban Group to give it their best try to get these properties purchased. If a property cannot be purchased, eminent domain action would be instituted. He does not anticipate that it would take one year to get this done and could take upwards of five to six months. Mr. Sugerman did not think that The Urban Group needed one year to get this done, but he also thought that it was not necessary to have a time certain for The Urban Group to get the job done. Mr. Hutchinson pointed out that even if property were taken utilizing eminent domain, The Urban Group's services would still be needed. Chairperson Heavilin asked how long this could take and Mr. Sugerman stated that this could take between two to three years. Chairperson Heavilin asked if the relocation money would still be offered if a person's property were taken by eminent domain. Mr. Sugerman felt that the property owners would probably be entitled to the benefit of relocation. Chairperson Heavilin inquired if there was a timeframe on the original contract and Mr. Hutchinson noted that it was task driven. Vice Chair Tillman was still in favor of having a one (1) year contract and if it had to be extended, it could in order to protect the interests of the CRA. Chairperson Heavilin pointed out that the original contract has no timeframe. Ms. Mason stated that the Uniform Relocation Act states that any person or business that is displaced has up to 18 months to file a relocation claim. Mr. Barretta did not wish to amend his motion to include a time limit. Vote Motion carried 4-1 (Vice Chair Tillman dissenting). 15 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida June 8, 2004 Mr. Hutchinson noted that staff is working very hard to get this done. He realizes the importance of getting these properties purchased and will move as fast as possible. Mr. DeMarco requested that they be furnished with monthly progress reports, and Mr. Hutchinson stated that this would be included in the agenda packets. Consideration of Acquisition of Property at 129 NE 9th Avenue in the MLK Phase I Area Mr. Hutchinson reported that the Board is being presented with a purchase contract for Juanita Kelly for parcel #122. The contract was devised by Legal and TUG. The property was appraised at $135,000 and an offer in that amount was presented to the owner. Ms. Kelly has counter-offered with $148,500. Staff is recommending that the appraised value of $135,000 should remain as the Board's offer. He pointed out that the seller is waiving her relocation entitlements. Mr. DeMarco requested to look at the appraisal and was informed that it was available in the CRA office. Mr. Hutchinson also noted that they were required to hire an appraiser to check the appraiser. Vice Chair Tillman inquired what the scenario would be if the seller would not accept the Board's offer. In that event, Mr. Hutchinson stated they would continue to negotiate with the owner. Vice Chair Tillman inquired how they could negotiate if they were given authority to offer only the appraised value. Chairperson Heavilin stated that they could always offer more than the appraised value, which she was not in favor of. Vice Chair Tillman was in favor of staff having a 10% leeway. Vice Chair Tillman felt that this could affect the CRA's public image and would appear to be petty. He would like to have some leeway in negotiating; otherwise, the item would come back to the Board next month to be readdressed. Mr. Hutchinson wanted to avoid being taken advantage of on their first purchase. Mr. Barretta felt that this would set a precedent and if they purchased this property 10% above appraised value, they would end up paying this for all properties they purchase. Motion Mr. Fenton moved to give The Urban Group the authority to offer $135,000 to Juanita Kelly to purchase the property at 129 NE 9th Avenue. Motion seconded by Mr. Barretta. Barry Lazarus, Project Manager for The Urban Group, has been involved in the eminent domain field for over 12 years and said it was unrealistic to think that the CRA could purchase properties at appraised value during condemnation proceedings. He pointed out that Ms. Kelly waived almost $15,000 in relocation money to close on the deal and she is well connected with the community. Not approving this transaction could result in poor public relations. Also, if the property was foreclosed upon and they had to 16 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida June 8, 2004 use eminent domain and go to the lender, this would result additional costs that would well exceed $13,500 that Ms. Kelly is asking for. If the lender takes over the property, the price would far exceed the additional $13,500. Mr. Hutchinson did not agree with Mr. Lazarus' assessment of the situation. He felt that this would set a dangerous precedent using taxpayer money. Mr. Fenton inquired if the property was under foreclosure and was informed that the seller has been served with a notice of foreclosure. Dale Sugerman, Assistant City Manager, stated that staff always prefers to have some flexibility, but not necessarily in this particular situation. He noted that the negotiations become public and are on the record. He recommended that the Board either approve the purchase at the appraised value or if the Board feels that there is some value in the seller waiving her rights to the relocation costs, it might be prudent for the Board to authorize another figure. Mr. DeMarco recommended offering $139,000. Mr. Fenton moved to call the question, which was seconded by Mr. Barretta. Vote Motion carried by 3-2 (Vice Chair Tillman and Mr. DeMarco dissenting). Consideration of approval for the Executive Director to negotiate a purchase contract(s) for real property for a proposed CRA office and to secure said contract(s) with up to $10,000 earnest money, contingent on Board approval of the contract Mr. Hutchinson stated that the CRA office space is critical and they need more space. He would like to build a site with a leaseback, or purchase a condo or real property. There is a project in an area that he would like to look at and bring back a contract to the Board to consider at the July meeting. He was concerned that if they had to wait, they may lose the property. Mr. Hutchinson was not in favor of staff having to build an office, but this is an opportunity to have a condominium that they could own and would provide them with the necessary space. Mr. Fenton asked if the property was within the CRA and Mr. Hutchinson stated that it was. He had spoken to the Chair about this, and he felt that the Board would be pleased when he brings the offer back. The earnest money would be contingent upon Board approval. Chairperson Heavilin was in favor of purchasing, rather than leasing. Mr. Hutchinson pointed out that debt service and lease payments are approximately the same, and he felt it would cost less to own the property than to lease it. 17 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida June 8, 2004 Motion Mr. Fenton moved to authorize the CRA Director with the concurrency of the Chairperson to offer earnest money up to an amount of $10,000 for the purchase of real property for the CRA offices, contingent upon Board approval. Motion seconded by Mr. DeMarco and unanimously carried. X. Commission Actions There were no CRA public hearing items to report on. Mr. Hutchison reported on the items that the Board has an interest in. Xl. Board Member Comments None XlI. Other Items None XlV. Future Agenda Items None XV. Adjournment There being no further business, the meeting properly adjourned at 8:46 p.m. Respectfully submitted, Barbara M. Madden Recording Secretary (June 9,2004) 18