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Minutes 08-18-05 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY WORKSHOP MEETING HELD IN THE CRA CONFERENCE ROOM #107, 639 E. OCEAN AVENUE, BOYNTON BEACH, FLORIDA, ON THURSDAY, AUGUST 18, 2005 AT 6:30 P.M. Present: Jeanne Heavilin, Chairperson James Barretta (arrived at 6:47 p.rn.) Alexander DeMarco Don Fenton Steve Myott Doug Hutchinson, CRA Director Absent: Vice Chair Tillman Marie Horenburger I. Call to Order Chairperson Heavilin called the workshop meeting to order at 6:34 p.m. II. Roll Call The Recording Secretary called the roll and declared a quorum was present. III. Approval of Agenda Motion Mr. Myott moved to approve the agenda. Motion seconded by Mr. DeMarco and unanimously carried. IV. New Business A. Consideration of the CRA 2005/2006 Budget . Update of the Boynton Beach Boulevard Extension and Promenade Design/Build Project Mr. Hutchinson felt it has been sometime since the Board was updated on this project and he thought it would be worthwhile to have a progress report. Mr. Hutchinson introduced Dennis Haynes of Burkhardt Construction who would be giving an overview of the project's progress. Each month aerial photographs of the site are taken and photographs were displayed that showed how the project was progressing at various stages. Environmental permits Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida August 18, 2005 were received in May 2005 that allowed them to really start moving on the project. Prior to that time, they worked on the underground utilities. Mr. Hutchinson pointed out the photos would be put on the CRA's website. Mr. Haynes discussed the work they have performed to date that included mitigation of the mangroves for the cul-de-sac, the wall around the cul-de-sac, installation of the water mains, and storm drainage lines. Originally they anticipated a completion date for the project in October 2006 and have moved the date up to January 2007 because they had to get the FP&L easements signed by the Related Group. Mr. Haynes pointed out, however, that the project is ahead of schedule and recommended they remain with the original completion date. The contract has a value of $9.7 million and there is a contingency budgeted into the contract of approximately $400,000. Mr. Haynes estimated they are halfway through the construction, or approximately $4.5 million of construction, and have used less than 10% of the contingency budget. Mr. Hutchinson reported that Burkhardt Construction is working well with Related's contractor and the utmost cooperation is taking place. Mr. Haynes felt the CRA has been a very good neighbor to the Marina Project and has accommodated and coordinated well with their efforts, while addressing the Boynton Beach Promenade Project's needs. (Mr. Barretta arrived at 6:47 p.rn.) Mr. Fenton inquired how close the Marina Project was to the public right-of-way and Mr. Haynes responded seven feet. Mr. Haynes pointed out by having a 15-story building seven feet off the private property line, it is almost impossible to have any spillage into the public right-of-way. Mr. Haynes was very positive about the progress of the project. Chairperson Heavilin asked when the completion date for the Marina Project was and Mr. Hutchinson responded March 2007. Chairperson Heavilin also asked if the Promenade ended at the cul-de-sac. Mr. Hutchinson stated it ended there for vehicles, but people could walk to the end of the Promenade. Mr. Haynes displayed a photograph of the overall project in response to Chairperson Heavilin' question. Mr. Barretta inquired how the Promenade Project would interface with the intended streetscape improvements for Boynton Beach Boulevard. Mr. Hutchinson responded that the overlay is ready to go that would trigger putting in the streetscape elements in 2006. The Board will be reviewing the 30% design in September and critical areas have been identified to go alongside the overlay. 2 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida August 18, 2005 Mr. Barretta inquired about the "overlay". Mr. Hutchinson explained there is a project from Federal Highway all the way to 1-95 that is being undertaken by the State to redo the medians, paving and re-striping. The CRA improvements will be done in conjunction with the State project. Mr. Haynes stated they are trying to coordinate the CRA's project with the State so they could be done simultaneously. Mr. Hutchinson anticipated within six to eight months the area from 1-95 to the water would be redone. This is one of the items in the budget that the Board will be looking at. Mr. Haynes next presented an artist's rendering for the restroom at the Promenade and Mr. Hutchinson asked for the Board's input. Mr. Hutchinson pointed out that the proposed design of the restroom would fit within the footprint; however, he noted that there was some need for styling of the building. Mr. Haynes noted this did not have to be determined tonight, but a decision needed to be made so they could move forward with the design and permitting of the building. If possible, he would like to have this resolved within 60 days. Discussion ensued among the members on how they would like the restrooms to look. Mr. Hayes noted they would build whatever the Board decides and recommended providing copies of the building to the Board members so they could review the design. Mr. Myott inquired if the restrooms could be built in another location along the Promenade. Mr. Hayes noted this has been discussed ad infinitum. Mr. DeMarco was opposed, in any event, to using any dark colors on the building. Mr. Haynes pointed out the colors used picked up the Marina Project colors. Mr. Haynes will follow through by providing a copy to the members for their review and input. Mr. Barretta requested he not be furnished with a copy. Mr. Haynes concluded his presentation. Mr. Hutchinson noted there is a drainage project earmarked for 4th Street and he has included in the CRA bud~et a match for another project in this area. Chairperson Heavilin noted wherever "4 Avenue" is mentioned, it should be "4th Street." Mr. Hutchinson reported that 4th Street is becoming an urban streetscape with a great many projects fronting on that street. Mr. Barretta inquired how much retail the Arches project would be putting in along 4th Street. Mr. Hutchinson responded none for the Arches. Mr. Barretta questioned this, since 4th Street is an important street. Mr. Myott noted Ms. Brooks was in favor of retail along this Street, but the developer wanted more living units and parking spaces. Paul Fleming, the City's Project Manager for the Utilities Department, presented drawings of the project. Approximately three to four years ago the Utilities Department recognized the need to address flooding in the downtown area. The first phase of this project was the construction of a retention pond. The project also included a phase 2 and phase 3. Phase 2 is the railroad project, which is nearing completion. Fourth Street 3 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida August 18, 2005 is part of phase 2 and a small portion of phase 3. Phases 2 and 3 have since been combined into the final phase of the downtown watershed project. Mr. Fleming pointed out they went through several design characteristics and have worked closely with Public Works. They have considered closing 4th Street at Pence Park and making it one large park with a dry retention area, but there is a stormwater issue if this were done. Community involvement meetings were held with the residents and business owners and it was unanimously agreed to accept Alternative A that was displayed in the artist drawing. This would meet Utilities' need to manage stormwater. The project was originally designed with an 8" water main going up 4th Street that has now been upgraded to 12" to support the Marina District's needs. The project had been designed and was in permitting when the Arches project was announced. Staff went back and determined the water main size needed to be increased between 6th Avenue to 2nd Avenue since this area had a significant stormwater problem. There was enough funding to complete the project for this area. With all the new development intended for this area, staff determined that the project needed to be looked at again. Two meetings took place that were attended by the Planning and Zoning staff and the CRA to come up with alternatives. Mr. Fleming pointed out there was no funding for the alternatives and they have been working closely with Post, Buckley, Schuh & Jernigan (PBS&J), the design consultant. As a result, they have come up with some conceptual ideas and some conceptual costs. Mr. Livergood explained that the design has more of an urban feel and they have placed raised curbs on the median and have included streetscape improvements on the median as well. Mr. Livergood pointed out the roadway would be a good location for staging events and they are giving consideration to provide water and electricity for vendors. Originally the project was supposed to manage stormwater and other infrastructure needs and now it is being changed. Mr. Livergood would like to provide parking and introduce traffic calming to get people to slow down. Mr. Hutchinson would like to see mature trees introduced. The project has now been changed from a Utility project to an urban setting project that would change the streetscape in the Central Business District. Mr. Hutchinson pointed out that to bring these other elements into the project would cost $225,000. The City is requesting that the CRA contribute $208,000 towards the project and Mr. Hutchinson remarked that it is included in the budget, plus the contingency. Mr. Fenton inquired how the new plan would look and Mr. Livergood explained it would look close to Plan A that was presented. Mr. Fleming pointed out the plan has been changed to include a sidewalk on both sides of the street and the water main would be located under one sidewalk. There would be 8' parking and 11' travel lanes with a 6' raised median that would be grassed and irrigated. Mr. Fleming said they would work closely with the CRA and bring back different designs and color schemes for approval. 4 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida August 18, 2005 Mr. Hutchinson pointed out that the estimated cost would be spread out over two years. Mr. Livergood noted the CRA would incur additional construction costs for the streetscape elements and the stormwater storage that would now be placed underground in pipes. Mr. Fenton asked what the entire costs would be over the next two years. Mr. Hutchinson responded it would cost the CRA $225,000 this year. Next year, the CRA would contribute $750,000. Mr. Fenton asked what would have to be cut in order to come up with the funds. Mr. Hutchinson said this was a decision the Board would have to make. Mr. Hutchinson has included the funds in the budget. Mr. Myott inquired if the project would extend from Boynton Beach Boulevard to where 4th Street ends to the south. Mr. Fleming responded the project would be from SE 2nd Avenue to 1 ih Avenue. Second Avenue would go from a 60' right of way to a 40' right of way. The project would end one block south of Ocean Avenue. Mr. Barretta thought the Board had already determined that 4th Street was not an important pedestrian street and questioned why the CRA should spend $1 million for this project. Other members felt it would be needed for parking for other projects that would be coming in. Mr. Myott also pointed out the Lofts project would benefit from the improvement of 4th Street. Mr. Fleming reported that the design professionals for the project have been told not to do anything further until the City gives them direction on how to proceed. If the CRA decided to participate in the project, Mr. Fleming will bring back some artists' renderings of how the redesigned project would look. Mr. Barretta did not think it made sense to improve the street so that people could walk along parking garages. Mr. Barretta was opposed to giving money to the City if the City was not going to listen to what this Board had to say. Mr. Hutchinson felt the project was a good project and with CRA participation, it would even be a better project. Also, there was money available to do the project. However, this was a decision the Board would have to make. Mr. Barretta felt the project was the responsibility of the City and Mr. Fenton concurred with this. Mr. Fenton has reviewed the budget and did not think the money was available. If the Board decided to do the project, monies would have to be cut elsewhere. Mr. Livergood responded the City did not want to do any more design work until it was known who would be participating in the project. Since not a great deal of money has been spent on the project, Mr. Livergood felt this would be a good point to make a decision on how to proceed. Mr. Fleming pointed out the City has made promises to the residents and business owners to move forward with the project, but now a conscious decision has been made to stop the project until it is determined whether the CRA would participate. 5 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida August 18, 2005 Mr. DeMarco inquired if the City Commission viewed the plan. Mr. Fleming noted the project was approved from 2nd to 6th by the City Commission and was funded as a drainage project. Mr. DeMarco was in favor of moving forward with the project and thought the CRA should participate since the project was a pedestrian-friendly project. Mr. Fleming also pointed out the Commission approved the extension of the project from 6th to 12th by awarding the design contract to PBS&J. Mr. Myott suggested if the Commission and the City Manager were made aware that the project was not a good urban street design, the City might agree to contribute more money to the project. Mr. Fleming reported that staff has received the final draft proposal from PBS&J and the City is, in fact, contributing more money. The value of the requested change is $354,000 and they are asking the CRA to contribute $225,000. The Utilities Department is actually putting in another $145,000 for something that has already been designed and permitted. Mr. Fleming pointed out the added construction value was $2.4 million. They are asking the CRA to contribute $1.491 million and the City and Utilities would be contributing an additional $943,000 beyond what had been budgeted. He noted that the northern portion of the project has been designed and permitted and the southern portion has already started. Mr. Fleming pointed out that a large cost of the project included the lighting. The project has progressed from a utilitarian stormwater water main project and would now be a project that would run underground pole boxes, conduits, wire and the placement of aquamarine lightscapes. Mr. Fleming pointed out that even if the CRA chose not to participate, the Utilities Department would still move forward with the project as designed. Mr. Livergood requested that Mr. Hutchinson get back to the City about participation in the project prior to the Utilities CIP Workshop scheduled for August 30th. . Staff Presentation of Budget Mr. Hutchinson reported the TIF projections over last year were up $1.1 million. The TIF forecast is $6.1 million, but he has left the figure at $6 million in the budget. Mr. Hutchinson anticipated there will be a small adjustment in the millage rate for the County and City, but this should not cause any kind of significant impact, if, in fact, there are adjustments. Mr. Hutchinson pointed out the rollover cash is underbudget this year due to construction starts. He noted the bond money could only be used for bond projects. He has categorized the budget, "operating, programs, and projects. "Bond issue" and "cash" are listed under projects. Mr. Hutchinson is recommending that the $2 million for the Arches incentive be set aside as required by the agreement. The $2 million cannot come from the bond funds and must come from cash. As a result, cash is affected, and the non-bond projects have to be adjusted. 6 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida August 18, 2005 Staff is also proposing an affordable access bond issue. Mr. Hutchinson opined they have a $12 million bonding capacity. Staff, therefore, is recommending an $11 million bond issue for programs that Mr. Hutchinson has outlined in the Heart of Boynton Area. The money would also be used for set asides back to the City for single-family residential. Mr. Hutchinson referred to the spreadsheets in the budget that indicate what the CRA's operating costs would be, as well as the CRA debt. Next year's TIF was established this year, since they are already in the eighth month. Going forward, there is a $3.8 million operating and bond debt coverage for the two bond issues and the loan debt. Mr. Hutchinson reported that CRAs would be targeted to address the affordable housing issue since Chapter 163 of the Florida Statutes is intended to eliminate slum and blight and help low income areas. As a result, the CRA will have to set aside some TIF funds to address this. If the CRA did not do this voluntarily, Mr. Hutchinson felt the CRA would be requested to do so. He felt it would be prudent to do the bond issue, since the CRA is just beginning to address affordable projects. The CRA has been successful with grant funding and Mr. Hutchinson anticipated that staff would be more aggressive in seeking out grants. Mr. Hutchinson reported that the trolley system is up and coming on line. There have been some staff changes and $60,000 has been set aside for the Human Resource Consultant. Mr. Hutchinson anticipated recommendations for changes and salary adjustments will be made and that this amount was more than sufficient for this purpose. Equipment and software: Mr. Hutchinson pointed out when the CRA began its operations there was a budget of $800,000 and three employees. Now the budget is at $17 million and, as a result, the accounting software needs to be upgraded. The CRA now has eight computers and more sophisticated programs. Mr. Hutchinson will be presenting the software and hardware package at the August 30th workshop. He would like to be on the new system beginning October 1, 2005. Mr. Hutchinson pointed out in the expense for programs, the $2 million set aside needed to be included. At the workshop, the Board looked at the bond issue projects that were just under $19 million that could be used for acquiring additional key properties for mangroves. They had to hold up on the Riverwalk construction until it was known if they were going to proceed with the Museum on the waterfront. As a result, the bond funds have been reallocated. Next addressed were non-bond issue funds that would be used for the adaptive re-use for the Old High School. Staff is working with the federal lobbyist and have been informed they are in final negotiations to receive some grants for multi-million dollar 7 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida August 18, 2005 exhibits that would be exhibited inside the Old High School. Mr. Hutchinson is encouraged with this progress. Mr. Hutchinson referred members to the back page of the budget that shows there is $800,000 in reserve and it is available if needed. Mr. Fenton felt the forecast of a 15% appreciation rate was too high and he did not want to see it increase more than 10%. He could not find the "see detail sheet" for the $6 million mentioned under the TIF Revenue on page 1. Mr. Fenton inquired where the $2.4 million in TIF funds were coming from. Mr. Hutchinson responded that these funds would be coming from the actual tax rolls and the CRA received the certified tax base numbers from the Tax Appraiser's Office. This is discussed in the handout. Mr. Hutchinson pointed out the CRA is in the 8th month of next year's TIF and he felt that this would increase by at least $1 million. The budget is not speculative. Mr. Hutchinson pointed out that normally he would do a five-year forecast and anticipated having it for the Board next month. The budget presented is not a forecast budget, but the actual budget for this year and next year. It was pointed out that the debt service is carried forward and needed to be looked at compared to the $6 million TIF. Mr. Hutchinson pointed out that the only change that would occur is if there was a very slight decrease in the millage rate. He noted the actual TIF revenue was $6.1 million, but he used only $6 million. The actual TIF numbers increased by 41 % in the Heart of Boynton. Mr. Fenton still felt the 15% was unrealistic and Mr. Hutchinson responded when he prepares the forecast, he will use 10%. Mr. Fenton was amenable with this approach. Mr. Fenton inquired if the CRA lost the County grant for the trolley and Mr. Hutchinson responded that was correct, but the CRA received a federal grant. Mr. Fenton inquired how the federal grant would offset the loss of the County grant. Mr. Hutchinson explained the County's grant was $120,000 per year and the federal grant was $155,000 and should increase next year to $250,000. Mr. Hutchinson also pointed out there is still a possibility that they would receive the County grant. Mr. Fenton recalled that the County announced that the CRA would be receiving the grant and now they have reneged. Mr. Hutchinson reported that staff is working to recoup some of those grant funds. He also pointed out with the new software, staff will have a better cash flow management and would be able to keep the Board better informed. Mr. Myott inquired who on the CRA staff would be writing the grants. Mr. Hutchinson responded that grant writing would be a team endeavor. The City's grant team would also be available to assist CRA staff. Mr. Myott would like to have a report on this included in the Director's Report. Mr. Hutchinson will start a new category entitled "grant activity" in the Director's Report. 8 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida August 18, 2005 Ms. Bright has recently met with the Federal Transit Administration and they provided her with a timeline when the CRA would be receiving the grant funds. Mr. DeMarco inquired if the CRA auditors were familiar with grant reporting and Ms. Bright stated the CRA's auditors are familiar with this type of auditing and would be capable of handling the CRA's needs. Mr. Hutchinson also pointed out it is a State requirement that the CRA be audited on an annual basis. Mr. Fenton noted even though the trolley would be receiving a grant for $155,000, how much of a deficit would remain. Mr. Hutchinson responded there would be a deficit of $490,000 because of some one-time expenses. Mr. Hutchinson noted they would be receiving advertising income of approximately $95,000. Mr. Hutchinson explained the benefits of having the trolley. If they did not have the trolley system, the CRA would have to apply for a grant to fund an annual traffic concurrency exemption study. Ms. Bright also pointed out that MPO is allowing the CRA to reapply for $40,000 per route, which would mean another $80,000 of the $120,000 of the original grant. Mr. DeMarco inquired what the costs were for running the trolley on a weekly basis. Ms. Bright responded it cost $6,600 for the Congress Avenue route and $1,940 for Ocean Avenue route. Mr. Fenton noted this came out to a $330,000 deficit. Mr. Hutchinson explained it is not uncommon for public transportation to operate at a deficit. Mr. DeMarco noted that the ridership was very low and asked why people were not utilizing the trolley. Mr. Hutchinson noted it was unrealistic to judge a public transit system during the first 30 days of operation. Public transportation is measured by years in order to build ridership. Ridership has increased and a marketing plan will be online shortly. Ms. Bright also noted that seven additional stops have been added. Data on the ridership is being kept and she would be glad to report on this in the Director's Report. Also, Mr. Hutchinson explained that ridership during "season" and "off season" would be different. There is a possibility that the City might use the trolley to transport people to the beach, which would be an additional revenue source. Chairperson Heavilin requested to address Personnel Costs. She was in favor of adding a position for a receptionist or receptionist/secretary. Mr. Hutchinson noted the Administrative Assistant assists him, and it was not possible for that position to sit at the front desk and act as a receptionist. Mr. Hutchinson noted there have been requests that the agenda be placed in binders for the Board members. This duty would be the responsibility of the Administrative Assistant as well. He felt, with the current staff, their staffing needs are being met. Chairperson Heavilin felt it was important to have someone up front to direct people coming to the CRA offices, since the offices are split into two locations. In addition, this person could perform secretarial duties on the operations side. 9 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida August 18, 2005 Mr. Fenton questioned the need for a marketing position. Mr. Hutchinson responded that this is an essential position and the person in this position is in charge of the Website that must be updated regularly. Also, that person is in charge of the CRA quarterly newsletter, annual report, press releases and a multitude of other duties. Chairperson Heavilin thought this position would be more appropriately titled marketing/public relations. Mr. Barretta inquired if there was enough room in the current offices for all staff. Mr. Hutchinson explained how the offices would be set up. Mr. Barretta thought it would be more feasible to have the staff in one office and he would like to see the CRA move in this direction. Mr. Hutchinson agreed with this and noted they have been looking for over a year to find office space within the CRA area. Mr. Hutchinson felt their current location was temporary and at some future date, they would move to a new location in one of the new projects. Mr. DeMarco asked how much space the CRA office would require and Mr. Hutchinson responded 3,000 square feet. Mr. DeMarco felt this was not sufficient. Mr. Hutchinson noted the current offices provide 2,100 square feet. Chairperson Heavilin requested that Mr. Hutchinson include this position in the revised budget. Discussion ensued about setting up partitions and performing remodeling in the current offices and whether it was feasible. Mr. Fenton asked what the cost would be and Chairperson Heavjlin said $1,500. Mr. Hutchinson noted the CRA staff brought forth many ideas for new offices, but the Board would not approve them. He also pointed out that the $1,500 mentioned by Chairperson Heavilin would be an expense for next year and the costs for remodeling the offices were in this year's budget at $10,000. The plans and sketches are complete and Jonathan Ricketts is working with the contractors on moving forward with the remodeling. Chairperson Heavilin pointed out that the audit services were contained on page 5 of the budget handout at $7,500. The CRA has had a contract with the current auditors since 2003. Mr. Myott inquired if the budgeted amount for legal ($120,000) was a historical figure and Mr. Hutchinson responded that it was. Under "Audit" on page 5, Chairperson Heavilin pointed out in the first sentence it should be changed to read, "The CRA has entered into a contract with an outside CPA firm in 2003..." Under "Rent," Mr. Hutchinson noted the CRA would be renting an air-conditioned "off- site" storage to store records at a cost of $2,040 and Ms. Bright is trained in records management. 10 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida August 18, 2005 Mr. Fenton pointed out by adding additional staff, the costs for benefits would change. Association Meetings & Seminars: Mr. Fenton asked what the costs would be for the trip to Colorado. Mr. Hutchinson pointed out the costs for attending the International Downtown Association for eight people would be $15,000. Chairperson Heavilin inquired if the CRA would be paying for any City staff to attend and Mr. Hutchinson stated this was the Board's decision. Mr. Fenton would like to revisit this item. Mr. Hutchinson pointed out it was important that the CRA and the City be on the same page when it comes to streetscapes and design. The CRA will also be receiving an award. Chairperson Heavilin was not in favor of staff putting the agenda and backup in notebooks and Mr. Fenton concurred. Mr. Hutchinson pointed out that this was a Board member request. Mr. Fenton requested it be placed on the agenda for a vote. Mr. Hutchinson will include it as an item in the Director's Report. Office Equipment & Supplies: Mr. Hutchinson felt it was time to update the current system, which is not adequate. Chairperson Heavilin inquired if there would be a monthly fee for the central server. Mr. Hutchinson stated the CRA would be purchasing it and the City's IT Department will be installing it. Under "Membership/Subscriptions", Mr. Fenton requested a definition of all the acronyms used. Mr. Hutchinson will follow through with this request. Mr. DeMarco remarked about the high cost for the subscription to the Downtown Promotion Reporter. Mr. Hutchinson felt the expense for this publication was more than worthwhile. Bond Payments: Mr. Hutchinson pointed out that under "Bond #2 Payments" the amount reflects issuance costs, plus the payment in the amount of $850,000. This is included in the event the CRA decided to move forward with a second bond. Mr. Hutchinson pointed out the City would again be a co-signer on the bond. Mr. Fenton questioned if the City had to co-sign on the bond. Mr. Hutchinson will do an analysis with and without the City as a co-signer. He noted that the CRA saved over $1.2 million with the City as a co-signer. Chairperson Heavilin asked what the City's Community Improvement Division was doing to address affordable housing. Mr. Hutchinson recommended Chairperson Heavilin direct this question to the City. Mr. Fenton felt the City should become more involved with this. Chairperson Heavilin noted there was a dearth of affordable housing throughout the Country and it should not just be a CRA issue. She would like the CRA to meet with the City to find out if the City wanted to help with the affordable housing issue. Mr. Myott questioned if they could spend any of the bond money on affordable housing in the next budget year, and Mr. Hutchinson stated it was possible. Mr. Hutchinson referred members to the handout on how the bond issue would be used. Mr. Hutchinson 11 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida August 18, 2005 is estimating that $4 million of the bond funds could be used for property acquisition in Phase 1 of HOB and for the entry boulevard to the Ci~'s Public Works. Mr. Hutchinson referred members to the last page of the August 15 h memo that was a map of the properties that he referred to. For these properties to become affordable access housing, when they go out for an RFP, the Board could decide to contribute the land at no cost, taking units in trade for the real estate trust, and then managing the finished units. If they decide to move with this, the funds must be available to transfer into a court account. If the Board decides not to acquire property, the private sector will not be able to deliver an affordable product. Mr. Hutchinson has included $2 million for incentives in order to underwrite the private sector projects. Mr. Fenton questioned the rationale of building single-family homes west of Seacrest Boulevard. Mr. Hutchinson pointed out that staff is working on this and will be bringing something forward in the very near future. Mr. Fenton questioned whether it was possible to write a covenant based on the information he has heard so far in the bond issue. Mr. Hutchinson reported that Mark Raymond has reviewed the concepts of acquiring those specific properties and turning over the mechanism through development and he felt comfortable that the bond could be placed with the covenants. Mr. Raymond actually wrote the covenants for the Arches in the last bond issue. Mr. Hutchinson also felt confident that this would work. He has not requested a legal opinion, however, until the Board instructed him that they want to move forward. Mr. DeMarco inquired if the City was aware of the affordable housing issue and Mr. Hutchinson stated they were. Mr. Hutchinson could not speak on behalf of the City, but felt the CRA was the entity to generate the programs for the Board to consider. Mr. Hutchinson had concerns of assembly of the property and who would be doing it. There were seven property owners that wanted to do self-assembly with the CRA. Mr. Fenton was not in favor of any of the three presentations that the Board viewed. Mr. Fenton was not certain whether he was in favor of the bond issue. Mr. Hutchinson pointed out that the projects previously viewed by the Board were not related to the bond issue. The purpose of the presentations was to give the Board an opportunity to preview them before they voted on them and is beneficial before they are forwarded to the City. Mr. Hutchinson noted the presentations the Board viewed dealt with three different tracts of land. Several Board members have encouraged Mr. Hutchinson to have these presentations come before the Board and they have been on the agenda since the workshop. Police Programs: Currently the CRA has four police officers on staff and Mr. Hutchinson would like to increase this to six. Officers are more successful when they work in teams of two and the CRA police officers would be utilizing bicycles. It is staff's recommendation that the officers remain visible on the street and not in vehicles. Mr. 12 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida August 18, 2005 Hutchinson noted staff has received letters of appreciation from residents about the visibility of the police officers. When WiFi comes on line, the officers will be equipped with Palm Pilots. Mr. Fenton inquired if it was appropriate to add two more officers. Mr. Hutchinson pointed out new officers would not be hired until mid-year because the City is currently hiring new officers. Mr. Hutchinson commended the quality of the CRA officers and pointed out the importance of having two officers on bicycles when patrolling the area. Chairperson Heavilin questioned whether $55,000 for fa9ade grants was sufficient. Mr. Hutchinson noted this would be monitored and if more money were needed, he would come to the Board for additional funds. Festivals/Events/Business Programs/Marketing: Mr. Hutchinson pointed out that the CRA would be receiving an international award for the Business Genesis Program. The budget includes an additional $20,000 for an intern. Margee Adelsperger of the CRA staff distributed a flyer for an event the CRA will be holding on October 22 and 23, 2005 entitled "Pirates of the Intracoastal." Ms. Adelsperger gave a brief description of the event. Mr. Hutchinson explained that this will be a replacement event for Movies on the Avenue and there will be a series of different events that Ms. Adelsperger will be organizing to encourage people to come to the downtown area. Non-Bond Issue Projects: Mr. Hutchinson pointed out that $2 million needed to come from this for the Arches' incentive. He is suggesting putting $2 million into the Arches' set aside account and putting projects for 4th Avenue and Boynton Beach Boulevard into bond issue #2 and reducing the City Single Family Program. Mr. Fenton inquired if this was permitted under a bond issue and Mr. Hutchinson stated it was allowed. Mr. Myott inquired if a line item for the Arches would be created. Mr. Hutchinson stated there was one under Grants entitled "Direct Incentives Loan (Arches)." The "0" would become "$2 million." Mr. Hutchinson explained that the agreement provided that the CRA will set aside upon notification of commencement of vertical construction. When the CRA received the $6 million TIF check, he would recommend setting aside the $2 million. If the Arches does not meet their deadline and it goes to the next budget year, the CRA would be $2 million ahead. The developer of the Arches has stated they would be in construction by the spring. Board Direction Mr. Hutchinson reported the Board's recommendations would be incorporated into the budget and be presented in workshop form on August 30th. Staff is proposing that it be on the September 15th agenda for approval. If the budget cannot be approved at that meeting, a special meeting could be called to adopt the budget prior to October 1st. 13 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida August 18, 2005 Mr. Myott noted the only changes the Board requested were to add a receptionist and the Arches. Mr. Fenton requested that the $15,000 be cut back to $10,000. Mr. Myott inquired if the $700,000 would be spent on the Old High School during this budget period. Mr. Hutchinson noted they have to do an adaptive reuse program and he did not anticipate that the entire $700,000 would be spent. Mr. DeMarco thought that this would be a good place for the CRA offices and Mr. Hutchinson agreed. Adjournment There being no further business, the workshop meeting properly adjourned at 9:30 p.m. Respectfully submitted, '~AAAA- ~ - ~. ~'-"- Barbara M. Madden Recording Secretary (August 24, 2005) 14