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Minutes 05-05-06 MINUTES OF THE SPECIAL CITY COMMISSION MEETING HELD IN THE LIBRARY PROGRAM ROOM, BOYNTON BEACH, FLORIDA, ON FRIDAY, MAY 5, 2006, AT 2:00 P.M. Present: Jerry Taylor, Mayor Carl McKoy, Vice Mayor Bob Ensler, Commissioner Mack McCray, Commissioner Kurt Bressner, City Manager James Cherof, City Attorney Janet Prainito, City Clerk Absent: Mike Ferguson, Commissioner I. CALL TO ORDER: Mayor Taylor called the meeting to order at 2:05 p.m. Mayor Taylor explained the purpose of the meeting was to allow the Intown Group to present their new proposal for the Heart of Boynton. Vice Mayor McKoy announced he would need to leave at 4 p.m. Commissioner McCray asked for clarification on how notice of the meeting had been given to the citizens. Mayor Taylor explained as a special meeting, only twenty-four hour notice was required. City Clerk Prainito confirmed notice was posted at City Hall within the twenty-four hours. Commissioner McCray recalled the Intown plans had been discussed as part of the agenda at the last Commission meeting and wondered why it now required a special meeting. Mayor Taylor asserted under his authority as Mayor he had called the meeting as a result of the recent eminent domain legislation being considered and passed to the Governor. The time lines were critical at this point. Commissioner Ensler requested an update from the City Manager on the posture of the eminent domain legislation. Commissioner McCray concurred. Kurt Bressner, City Manager, related House Bill 1567 was approved in final form. The significant language is in Section 15 indicating the effective date of the legislation would be upon signature by the Governor. Prior drafts of the legislation had effective dates ranging from July 1st to October 1st of this year. He indicated eminent domain cases must be filed in Court prior to the effective date of the legislation. The bill sent to the Governor could be signed at his discretion or the Governor could veto the bill or send it back to committee. If the Governor did not sign the bill, it would automatically be effective after sixty days. Commissioner Ensler requested more information on any proposed referendum to be submitted to the voters in November. Mr. Bressner could not speak to any referendum. He did confirm 1 Meeting Minutes Special Commission Meeting Boynton Beach, FL May 5, 2006 the bill as written would not allow eminent domain to be used for redevelopment of slums and blight. Public improvements would be the only allowable use. Mayor Taylor added the referendum in November would ask voters if they wanted the eminent domain law, as passed, to become permanent in the Constitution. Mr. Bressner indicated this would eliminate any challenges to the Statute. Bonnie Miskel, legal counsel for Intown Development Group, indicated the comments made during the last Commission meeting would not be reiterated. She hoped to discuss a new alternative that could be pursued in a very limited window of opportunity for eminent domain to proceed. Ms. Miskel requested the Commission allow staff to commence negotiations with Intown as the developer for Phase II only. The Phase II portion would be more attractive to Intown as they already owned several properties in that area. Ms. Miskel alleged the acquisition would be an incredible task for Intown as would the acquisition of the remaining properties by the City for Phase I of the Heart of Boynton. She contended Intown understood the risk and was prepared to proceed at their own expense and risk. She reiterated the request of her client was for the Commission to authorize staff to negotiate a master development agreement and commence condemnation for the Phase II parcels only. Mayor Taylor inquired how many parcels would be at stake and Ms. Miskel replied there were six properties not under Intown's control. He also inquired if Intown would be seeking any kind of reimbursement if the Governor signed the bill in the near future. Ms. Miskel replied no type of reimbursement would be sought. She did not feel the risk would be excessive as only a few properties remained. Although Intown was assuming some risk, they realized they could halt any expenditure at any point in time. Mayor Taylor wanted it understood if the Commission agreed to go forward, there was no agreement as to density. Ms. Miskel agreed the Project should be developed in conjunction with the CRA Master Plan. She did request to reserve the right to bring back any potential amendments as may be needed. Mayor Taylor asked if relocation of the residents would be part of Intown's plan. Ms. Miskel replied relocation would be included with the possibility of land swaps as part of the plans. Mayor Taylor further inquired if affordable housing would be included. Ms. Miskel explained the program included a mixed use project with a variety of housing types. A component would be workforce housing, as well as retail. Mayor Taylor asked the City Attorney if the City could enter into an agreement with the developer since the Heart of Boynton was technically under the control of the Community Redevelopment Agency (CRA). Attorney Cherof indicated those types of things would be reviewed in conjunction with any proposed agreement submitted, addressing the rights of all parties, including the CRA. Commissioner McCray asked Ms. Miskel where Intown had spent the millions of dollars alleged to have been spent in the Heart of Boynton. Ms. Miskel clarified the comment had been made by Ms. Simons that $3.6M of contracts had currently been executed. Intown had closed on a parcel in Phase I and will close on a parcel in Phase II. She purported Intown had spent a significant amount of money to date in addition to the $3.6M for real estate in the Heart of Boynton. Commissioner McCray inquired if the alleged contracts were actually binding and not simply promises. Ms. Miskel responded the May 9th closing would be a non-contingency contract. 2 Meeting Minutes Special Commission Meeting Boynton Beach, FL May 5, 2006 Commissioner McCray requested Quintus Greene, Director of Development reiterate the comments he had made at the previous Commission meeting. Mr. Greene indicated his perception was that the project was being railroaded through by Intown. He was concerned the process of urban revitalization by using land control was being ignored. Relocation guidelines needed to be followed, according to Mr. Greene, and the properties in the target area cleared before requests for proposals would be issued to qualified development entities both locally and nationally. An evaluation of the proposals should be done by members of the local community and local government to determine which proposal would be in the best interest of the community. Mr. Greene suggested the contract for the development entity would then be created. Mr. Greene's concern was that the entire process was being bypassed and the community was given the choice of only one developer. Vice Mayor McKoy inquired if Mr. Greene considered the CRA as one of the entities and Mr. Greene agreed they would be or a developer. Mayor Taylor agreed Mr. Greene's viewpoint was one way to do redevelopment. He did feel the CRA created incentive programs to attract private monies. Mayor Taylor contended it would take too long for the CRA to acquire all the properties so the only alternative would be to attract private investors. It was pointed out that many meetings had been held to determine the desire of the community and the elected officials were required to recognize those needs. On the other hand, Mayor Taylor recognized the fact the entire community would not be totally satisfied with any redevelopment plans or projects. The rush was precipitated by the State legislature regulating eminent domain. The citizens of the Heart of Boynton have been requesting assistance for several years. Mayor Taylor indicated only one developer has stepped forward with a plan and proposal that should be accepted or rejected by the Commission. Commissioner Ensler expressed his concern that nothing has been done for a considerable amount of time. There have been three directors of the CRA and yet nothing significant has happened. Commissioner Ensler asked for clarification on the number of parcels outstanding in Phase II. Ms. Miskel replied Intown had control over the majority of the pieces or were in negotiations. There were six parcels with no agreement that Intown intended to pursue in the interim. Ms. Miskel explained Intown had attempted to do as requested after meetings with City staff and review of the CRA Master Plan when the traditional assemblage techniques had failed. She contended if an RFP had been issued, the Intown Group would have submitted their proposal then; however, the RFP was not issued. Ms. Miskel contended Intown was operating in an assisting mode so everyone would benefit. She recognized all the existing rules and regulations would still apply. She noted eminent domain proceedings have been applied in the CRA, setting a precedent of not using the RFP process. Commissioner Ensler asked if any other developer had come forward with any plans for Phase 1. Mr. Greene responded a developer for Phase I had not come forward. The reason being a full scale commitment to acquire all the properties had just recently been undertaken by the CRA. He emphasized the objective was to make sure Phase I was successful before proceeding to Phase II. Commissioner Ensler inquired of Ms. Miskel, if Intown would allow the residents of the Heart of Boynton to have significant input into the development of Phase II including relocation assistance. Ms. Miskel concurred the dialogue already initiated would continue. Commissioner Ensler submitted staff time should not be wasted on drafting an agreement unless there could 3 Meeting Minutes Special Commission Meeting Boynton Beach, FL May 5, 2006 be a meaningful result based on the eminent domain issue. Ms. Miskel explained monies would be expended for surveys and appraisals immediately and delay could be critical. The input of the community should be ongoing and in the very early stages of development, according to Commissioner Ensler. Kevin Ballard, a resident of the Heart of Boynton, felt the residents needed an attorney who understood the process and the agreements being made. Mr. Ballard contended contracts had been signed, but no monies had been paid to the owners. Ms. Miskel advised the remaining properties should be acquired quickly and then all contracts would be brought to close in a relatively short period of time. Mr. Ballard then raised the issue of affordable housing and asked for compassion for the residents of the community that could not afford so called affordable housing. Ms. Miskel advised the federal relocation guidelines would be followed for any displaced residents. Mr. Ballard felt the commitment from Intown was insincere since no monies had been exchanged. Mitchell Robbins, a part of the development team, explained his concept of density and fair market value of properties to decrease the land costs for more economical units for the buyers. Mr. Robbins asserted he had expended more than $lM to conceptualize ideas, plans and designs for the Heart of Boynton. He briefly outlined his previous redevelopment ventures along the eastern coastline of the United States. Greer Wright, a resident of the Heart of Boynton, reminded Mr. Robbins that many of the residents do not want the neighborhood to change. He also pointed out that the area has many prominent citizens who have come from the area and achieved national recognition. Ms. Miskel recognized there would be some homeowners who need to be relocated in the immediate area, but not in the core area of the plan. She contended the goal of elected officials should be to meet the needs of the majority. It would be an injustice to many residents to allow a few families to sidetrack the entire 30 acre parcel. Mayor Taylor believed eminent domain for blight and slum would most likely be abolished. In light of that, he inquired if Intown would still be prepared to move forward. Ms. Miskel advised the Intown Group intended to proceed within the time constraints. She contended Intown would continue to work towards acquiring all the parcels. Vice Mayor McKoy reiterated his concern relating to a master developer for the entire project. He commented the elected officials had a responsibility to protect the citizens and sometimes it would be necessary to step outside the box to protect the rights of the residents. Vice Mayor McKoy requested specifics of the work done over the last four years and specifically in relation to St. Paul's Church. Samantha Simons, President of Intown Development Group, outlined her contacts with the various employees of the CRA in relation to developing the Heart of Boynton plan. She felt the plan submitted was well received with 40 dwelling units and 45 feet including diversity to meet the needs of all residents. Monies were expended for the plans and neighborhood meetings were held to share the plans. Intown then partnered with Mr. Robbins to assist in making a difference in the community and build value in the community. A bidding war ensued with the CRA for available land. The thirteen churches have been addressed with the addition of a civic building for the smaller congregations. Vice Mayor McKoy pointed out the churches are different faiths so a civic building would not be suitable. 4 Meeting Minutes Special Commission Meeting Boynton Beach, FL May 5, 2006 Ms. Simons summarized her contact with St. Paul's church and Mr. Aikens on the board, culminating with the trustee board voting in favor of Intown to help develop the Heart of Boynton plan. She asserted an agreement could be reached with the church and is ongoing. The goal of Intown has not changed according to Ms. Simons, and remains to give value to the neighborhood. She indicated a commitment has been made to the remaining families to give them equal or better living conditions. Antwon Elwood, Pastor of Greater St. Paul Church, is the new leader of the church and has requested Intown to make a presentation to the board of trustees of the church to keep the leadership informed. Ms. Simons alleged further contractual agreements require the master developer agreement be put in place. Pastor Elwood contended something in writing and binding needs to be brought to the church for its consideration instead of more words and meetings. Mayor Taylor answered that Intown could not make those type of commitments because the Intown Group has not yet been approved by the City Commission and given the right to negotiate those type of agreements. Ms. Miskel invited any members of the community to be included in the model as it developed. Commissioner McCray indicated the Commission had not done anything over the last four years and neither had Intown to further the Heart of Boynton. He indicated he would not endorse any project until the process was tracked. Mr. Greene pointed out the Heart of Boynton is a single and two family neighborhood with no building over two stories. He felt the character of the neighborhood should not be sacrificed simply because the income levels are lower in the area. The original idea was to successfully set the stage with Phase I for the rest of the development. Mr. Greene theorized if the cost of land is deducted from the cost of housing, affordable housing is generated. The CRA was capable of absorbing the land cost and thereby achieve affordable housing. Pastor Patrick Chaney of St. John's Missionary Baptist Church, pointed out the notice to the residents of the Special Commission Meeting was limited and an injustice to the citizens. He felt a precedent was being set to circumvent a process. Pastor Chaney related his feelings that the business practices of Intown Development Group were questionable. The contingency clause in the contracts they have produced binds the owner but not the Intown Group. He questioned Intown's moral integrity and sense of fairness when they join a church to garner support within the church. Pastor Chaney inquired if any of the Commission had ever visited a project the Intown Group had completed. He feared that once Intown owns the land, it could be developed to meet the owner's financial needs, not the community's needs. Pastor Chaney interpreted the presentation by Intown to be that millions of dollars had been committed, but only thousands actually spent. He requested the Commission allow the process to be used so other developers can come forward. Pastor Chaney indicated he found some of the remarks made by the Intown Group to be offensive and condescending to the neighborhood and the residents. He contended CRA monies had been spent in other areas of the City and caution should be applied to assure the monies are spent correctly and not just to get it done based on time constraints. Commissioner Ensler felt any decision may only be academic at this point. He preferred to be criticized for trying something rather than doing nothing. 5 Meeting Minutes Special Commission Meeting Boynton Beach, FL May 5, 2006 Mayor Taylor clarified that developers are required to followed the Codes of the City controlling the development of any land. The Commission does have the ability to assign conditions of approval for a project. Lisa Bright, CRA Director, explained community meetings had been halted until a Heart of Boynton feasibility analysis for augmentation of the plan had been received. She admitted that decision may have been a mistake. She announced the feasibility study would be presented on May 9th in City Chambers to the CRA Board. Ms. Bright indicated she was working very hard to make something happen in the Heart of Boynton. Phase I would take the entire amount of monies from the bond issue to acquire all the parcels of land and private developers would then take over. She also noted no other significant developer had come forward for the Heart of Boynton except the Ocean Breese town homes. Ms. Bright noted the affordability issue is regulated by federal and county guidelines set at $280,000. There are programs available to meet the affordable standards. She clarified that CRA monies were not used for any project on Woolbright or Federal Highway south of Woolbright. Mr. Greene explained the land swap was proposed to accommodate the expansion of St. Paul Church and improve access to the Public Works complex. David Zimet, Boynton Beach Faith Based CDC, did not understand the need to hurry at this stage and felt the processes should be restored and followed. The delays have been problematic. Mr. Bressner noted only one property under eminent domain had actually gone to trial; all others had been negotiated. Quick take involves a public agency taking use of the property immediately for public improvements. Mr. Zimet also noted the federal definition of affordable housing varies from the county's interpretation. Woodrow Hay, a resident of Boynton Beach and Vice Chair of the Planning and Development Board, asked if the Intown Group was associated with the Intown Group in Atlanta in light of recent business developments. Ms. Simons indicated the two groups were not related. Commissioner Ensler requested assurance that Phase I could continue. He understood five parcels had not been included in eminent domain proceedings as yet. Mr. Bressner replied the properties were to be discussed at the CRA meeting on Tuesday, May 9th. Carolyn Young, with the self assembly group, understood her property would not be taken under eminent domain, along with the three other owners. Mr. Bressner indicated it would be a CRA decision. Vice Mayor McKoy inquired if Intown would be a part of the RFP process if that was the direction of the Commission. Ms. Miskel indicated Phase II would not exist if direction was not given to negotiate a contract. She added her client would not move forward without a contract and no other developer has come forward and the CRA has no monies. Mayor Taylor emphasized an RFP cannot be issued unless the City owns the land which it does not, nor does the CRA. 6 Meeting Minutes Special Commission Meeting Boynton Beach, FL May 5, 2006 Mr. Ballard advised he lived in Phase II and Intown had never discussed his property with him or met with him at all. Commissioner McCray wondered what, if any, difference it would make to wait another two months before acting. Mayor Taylor's position was something needed to get started and he moved that staff be given the direction to negotiate a contract with Intown Development Group. Commissioner Ensler asked the motion be amended to include the verbal commitments made by Intown Group at this time. Commissioner Ensler seconded the motion. Vice Mayor McKoy was interested in the Heart of Boynton Phase I and Phase II development. He felt the community could not continue in its current condition and encourage growth and economic development and a better quality of life. He requested, if approved, a committee be formed with residents from the Heart of Boynton, citizens, and City staff to move the Heart of Boynton forward. Vice Mayor McKoy contended the project should be finished. Mr. Bressner asked for clarification if the motion included staff working towards eminent domain on the remaining properties in Phase 1. Attorney Cherof commented the first draft submitted by Intown did not reflect the spirit of the community. Vice Mayor McKoy specifically inquired of Intown if Attorney Cherof's suggestion regarding the spirit of the community could be accomplished. Ms. Miskel agreed efforts would be made to capture the spirit of the community and incorporate those feelings into the agreement. Commissioner McCray indicated Intown had already met with the community. He reiterated his belief that waiting two months would be the better way to proceed. Ms. Miskel felt the request of Attorney Cherof was appropriate but cautioned the business terms did not delve into the land use amendment, rezoning, colors or designs. Mayor Taylor called for a vote and the motion passed 3-1. (Commissioner McCray dissenting.) Mayor Taylor adjourned the meeting at 4:08 p. m. 7 Meeting Minutes Special Commission Meeting Boynton Beach, FL May 5, 2006 ATTEST: CTIY OF BOYNTON BEACH C i' er /?~lCJ- rm.missioner ~C Commissioner ~ 8