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Minutes 08-08-06 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY MEETING HELD IN CITY COMMISSION CHAMBERS, BOYNTON BEACH, FLORIDA ON TUESDAY, AUGUST 8,2006 AT 6:30 P.M. Present: Henderson Tillman, Chair Stormet Norem, Vice Chair Rev. Lance Chaney Jeanne Heavilin Marie Horenburger Steve Myott Guarn Sims Lisa Bright, CRA Director Ken Spillias, Board Attorney I. Call to Order Chair Tillman called the meeting to order at 6:30 p.m. II. Roll Call The Recording Secretary called the roll and declared a quorum was present. Mayor Taylor, Vice Mayor McKoy, Commissioners McCray and Ensler were in attendance as well as Amy Dukes, Esq. of Lewis, Longman and Walker. III. Pledge and Prayer Rev. Chaney gave the Invocation followed by the Pledge to the Flag. IV. Agenda Approval A. Additions, Deletions, Corrections to the Agenda Motion Ms. Heavilin moved to approve the agenda. Mr. Myott seconded the motion. Ms. Horenburger questioned whether the Consent Agenda Items were approved with the adoption of the agenda. Attorney Spillias explained there was no correct or incorrect way, from a legal standpoint. Historically, the Consent Agenda is listed as a separate agenda item. Adoption of the agenda only indicated the agenda, as presented, is the manner in which the items would be considered. Vote The motion to approve the agenda unanimously passed. 1 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL V. Public Comments August 8, 2006 Ms. Bright introduced new CRA staff member, Leah Ford and highlighted her background. Ms. Ford will be providing Executive Assistant services. VI. Consent Agenda: A. Approval of the Minutes CRA Board Meeting - July 11, 2006 This item was pulled at the request of Ms. Heavilin. B. Approval of Financial Results - July 31, 2006 This item was pulled at the request of Mr. Sims. C. Approval of FY 05-06 Budget Amendment - General Fund D. Approval of RFP for Boynton Beach Blvd. Promenade Maintenance E. Approval of an RFP for the Mangrove Mitigation Area Maintenance G. Denial - Residential Fac;ade Grant Application - 3675 S. Federal Highway This item was pulled at the request of Ms. Horenburger. H. Approval of a Palm Beach County Easement for the Two Georges Marina 1. Approval of Contract to Update and Revise Staff Performance Appraisals. Motion Vice Chair Norem moved to approve the Consent Agenda less the items pulled. Ms. Heavilin seconded the motion that unanimously passed. A. Approval of the Minutes CRA Board Meeting - July 11, 2006 The following changes were made to the minutes: Page 12 - Motion was seconded by Vice Chair Norem and unanimously passed. Page 17 - Second motion was made by Vice Chair Norem. Page 7 - Second paragraph, third line from the bottom should read, " There seemed to be a consensus the $50,000 never occurred was never received by the church." Last paragraph, first line, change "countered" to "encountered" Page 8 - second paragraph from the bottom, seventh line from the bottom, "they do not use the Florida Bar Contract" should be clarified by adding, "which allows us to cover issues more specific to the CRA. " Page 2 - second motion should read as being made by "Vice Chair Norem". 2 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL August 8, 2006 Motion A motion was made by Ms. Horenburger to approve the minutes as amended. Ms. Heavilin seconded the motion that unanimously passed. B. Approval of Financial Results - July 31, 2006 Mr. Sims asked about the trolley system and why more businesses have not taken advantage of using it. Mr. Reardon explained the original company hired to market the trolley, and set the schedules, was no longer with the CRA. The issue is being handled by AMBIT Marketing. The CRA has been in close contact with AMBIT to increase those revenues and increase the exposure. Ms. Bright explained the original group was not a local firm, which negatively impacted the operation and resulted in a loss of revenues close to $90,000. The new firm will revamp the program. Motion Vice Chair Norem moved to approve the item. Ms. Heavilin seconded the motion that unanimously passed. G. Denial - Residential Fac;ade Grant Application - 3675 S. Federal Highway Ms. Horenburger asked the board to reconsider the program. She explained she was beginning to see the CRA improving facades that were later being torn down, thereby throwing monies away. She suggested the board re-evaluate the issue, address it at a later time, or hold a workshop on the matter. Additionally, she noted the item did not have a staff recommendation for approval or denial. She clarified the request was for roof work which was not an eligible expense, the work was done over six months ago, and the property, although homesteaded, was operated as a business that was unlicensed in the City. She recommended denial. Vivian Brooks, CRA Planning Director, announced she recommended denial and agreed with Ms. Horenburger. She added later in the meeting they would be discussing the Residential Incentive Grant, and how the program could be changed to have a better effect on the community. Motion A motion was made by Vice Chair Norem and seconded by Rev. Chaney to approve denial of the request. Motion unanimously passed. IX. Old Business A. CRA Downtown Parking Analysis and Recommendations 3 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL August 8, 2006 Ms. Brooks explained the board had requested staff review the parking in the downtown area. Ms. Brooks gave a PowerPoint presentation on the matter, a copy of which is attached to the backup for the meeting. In summary, staff reviewed the data and acknowledged parking was needed at the recently completed Boynton Beach Promenade. The area was expected to be an activity center as was the Marina, Ocean Avenue, as the downtown corridor between Sea crest and the Intracoastal, and the Mangrove Walk. These areas were within a couple of blocks of each other. She noted the developers create parking for their own projects, not additional public parking. She announced there was a parking deficit of about 2,500 spaces in the Central Business District . (CBD) with the greatest deficit at the Marina. Ms. Brooks identified five proposed locations to create public parking. Two of the proposed sites were within a proposed development and staff would work with the developer about designated public parking. Two sites were on unimproved vacant lands and one on improved land. Ms. Brooks noted the proposed capacity that could be achieved within the Ocean Pointe anq Ocean One projects showed less of a need for public spaces during the day. In the evening and on weekends almost 800 public spaces would be gained due to offices being closed. At the other locations, there were approximately 100 surface parking spaces each, on an interim basis. Delray Beach instituted surface parking first, and then as demand increased, they were reprogrammed to structured parking spaces. The total parking spaces available from all the sites tallied to 592 daytime surface parking spaces, 1,800 during weekend evenings and 1,100 on weekend days. Surface parking cost estimates were lower than structured. At $30 per foot for surface parking at the three sites, the estimate was $3.9M. This included lighting, paving, land acquisition, construction, marking the spaces, and possibly security. Structured parking was more expensive at $35,000 without land tallied to about $39M, which would have to be phased. Ms. Brooks explained she also recommended the Urban Land Use Shared Parking Calculations, contained in City Code, be amended. The Urban Land Institute revised the Shared Parking Calculations in 2005. She discussed this issue with City staff and indicated a recommendation to the City for the amendment needs to be made. She also noted in the Code, there was a payment in lieu of clause within the Central Business District (CBD) as it pertained to parking, and recommended that clause be extended beyond the CBD to all the mixed-use districts within the CRA area. She recommended staff proceed to negotiate on the five proposed sites to see what kind of figures could be developed or included in the private development projects for public parking. Motion Ms. Horenburger moved approval to authorize staff to begin negotiations with property owners and developers of Ocean One and Ocean Pointe to secure public parking, with priority being the acquisition of private property. Vice Chair Norem seconded the motion and asked Ms Horenburger to include all three recommendations in the motion. 4 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL August 8, 2006 Ms. Horenburger amended her motion to also include staff recommendation numbers two and three. Vice Chair Norem amended his second. Ms. Heavilin noted there was a correction on recommendation number one, which was to add language to the recommendation to read "... begin negotiations with property owners and developers of Ocean One and Ocean Pointe to secure public parking on all sites. . . ." Ms. Horenburger amended her motion to include the additional language. Vice Chair Norem amended his second. Vote Motion unanimously passed. B. Review and Selection of RFP Respondents - Old Boynton Beach High School Ms. Bright announced the proposals were received and evaluated by the selection committee, resulting in two organizations being short-listed. Those organizations were the Boynton Beach Charter Academy School and Five Towns College. Mr. Reardon reviewed the financials of the two proposers, which were also satisfactory. Both organizations were in attendance to make their presentations. Mr. Rick Abedon, Vice President of Acquisitions and Development for Brenner Real Estate Group, began the presentation for the Boynton Beach Charter Academy School and highlighted the following goals: ~ To create a cultural focal point for downtown ~ Improve the grounds for use for public events ~ To make the project financially feasible ~ Have a team in place with the ability to obtain financing and execute the plan The public survey they conducted showed: ~ 65% of the public preferred a combination of public/civic and private/commercial use for this site ~ 69% wanted to see a public cafe, outdoor recreation area ~ 92% wanted the gymnasium to be used for public entertainment Boynton Beach Charter Academy School was seeking to: ~ Preserve and rehabilitate the Old High School building ~ Have the re-use be consistent with the CRA and resident goals and objectives ~ Create a complimentary use with the Children's Museum, playground and library Mr. Abedon explained the primary user and owner would be the Charter School of Boynton Beach and Harid Conservatory. Financing was already arranged and they had a well-defined team and vision for the future of the site. The developer would be the Brenner Real Estate Group, and Staubach Co. would provide design and construction services. DPK & A Architects 5 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL August 8, 2006 would provide architectural services; Padula and Wadsworth Construction would be the general contractor and Jeff Auslander would be the tax and financial consultant. Mr. Abedon reported the team had a lot of experience in redevelopment in CRA areas in Palm Beach and Broward Counties, having rehabbed facilities for Deerfield and Oakland Park. He announced DPK & A Architects focuses on restoration and rehabilitation projects throughout the country and that Padula and Wadsworth, the General Contractor has undertaken over $200M in school construction projects in Broward County and had a bonding capacity of $85M. The presentation team consisted of Wayne Owens, Chief Operating Officer and Principal of the school, Pamela Owens, Executive Director of the school, and Mr. Clyde Copping of DPK & A Architects. Historically, the Charter School was founded in 1999 and was created for the betterment of the community residents and students. Foreign language classes such as Spanish, French, Japanese, school choir, violin and keyboard programs were offered. Dr. Owens explained the present facility was at maximum capacity and had a waiting list. The school also enjoyed a relationship with Harid Conservatory. The Conservatory was established in 1987 and was created as a school of superior professional training for gifted young dancers. Harid also provided ballet and modern dance performances to community residents in South Palm Beach County and to students of the Charter School. The team was proposing to have the facility be a public events catalyst for cultural arts programs and serve as the cornerstone of the Ocean District project. Through the partnership with the Conservatory, the Boynton Beach Charter School was looking to conduct performances in an 8,000 square foot (sf) performing arts facility that would be constructed as part of the Old Boynton Beach High School structure. Harid was part of a program that included a plethora of other proposed entities and programs such as classical and contemporary music, chamber music, violin ensembles, theater, drama, plays and other visual arts. The School would like to have the programming interfaced with local, educational, and civic organizations. The team explained the facility would create 25-30 new jobs, and would create a property tax base. The project would also generate less traffic and parking since the school taught elementary aged students. The project site was reviewed and thought to have no real positive interaction with the street. The buildings were lost due to surface parking. The team recognized the facility as part of an overall plan, and along with surrounding structures, comprised 20% of the redevelopment area. The team indicated once surface parking had been removed, space could be converted for a new City Hall and the building could be expanded to accommodate community cultural uses as well. DPK & A Architects, who was experienced in restoring dilapidated or destroyed structures, anticipated 35 daytime and about 200 evening parking spaces would be needed. An aggressive two-year construction schedule would be used and intended the project to be the anchor for the business and ocean districts. Mr. Abedon took the project one step further and explained if the City of Boynton Beach bought land and built a new 300 car-parking garage strictly for City Hall, the estimated cost would be $10M - $14M. Alternatively, if a 400 car-parking garage were constructed where the City owns the land, the potential cost would be $8M. In addition to the economic benefits, there would 6 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL August 8, 2006 now be 100 spaces available for cultural use during the day and 400 for evenings and weekends. This would have a dual purpose of saving money and the City would be creating a one-of-a-kind environment for special City events. The cost estimate was $8.5M. The construction of the facility would be completed by December 31, 2008. The financing would come from Historic Tax Credits, CRA contribution of land and building, New Markets Tax Credits, Bonus Depreciation Benefits afforded under the Gulf Opportunities Zone Act of 2005, and a $500,000 loan from the CRA. Mr. Abedon concluded his presentation and indicated the Charter School feels they have met the goals in the RFP and the public survey. He thanked the board for the opportunity to make the presentation. The Five Towns College Presentation Team consisted of Dr. Stanley Cohen, Founder and President of the College. Dr. George Alterman, Founder and member of the Board of Trustees, Brittany Glazier, representing Educational and Career Placement and current liaison, Mr. Mort Kuff, Museum Curator and Advisor, Mr. Robert Sloat, Advisor from Boynton Beach, and Mr. Joseph Ferrer, Advisor from Five Towns College. Dr. Patricia Schmidt explained Five Towns College had already demonstrated, through their campus in Dix Hills, New York, that they met the requirements of the CRA, RFP. She elaborated the Five Towns College provides performing arts, teacher education, music and business instruction. Their mission and goal was to use the performing arts to raise teacher education standards, as well as bring the community into the area. She highlighted the team would renovate the facility and bring in high quality teacher education programs, theater arts programs, as well as a college program bringing the arts to the community. The school was accredited with the Middle States Commission, the National Accrediting Association for Teacher Education Programs, and was on record in Tallahassee as being desirous of starting a program in Florida. Additionally, the school had 34 years experience operating, staffing and maintaining campus facilities for 1,200 students. They hoped to increase enrollment to 2,000 students by 2111 and anticipated a charter class commencing in September 2008 with 25 students in each program. The college also was planning on providing off site education at local schools as warranted, and offered 30 different programs in the education and cultural fields. The vision for Boynton Beach was to provide entertainment, to encompass the Boynton Beach Civic Center and to establish an Industry Gallery of Honor Museum that highlights noted individuals in the entertainment industry. They were proposing the high school be an administrative hub of their operations. They indicated the College had a record of achievement, as it pertained to working with communities, and they would bring in outside audiences, balanced with outside entertainment and student provided arts. She noted the audio, video, theater and acting components were student provided. Information resources, such as the 18+ online databases could be shared with the Boynton Beach Library, the Palm Beach County Library, and the Five Towns College Library. The 7 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL August 8, 2006 financial resources would be secured through New Market Tax Credits, Historic Tax Credit, Florida Community Loan funds, student tuition and the Five Towns College financial support. This concluded the Five Towns College presentation. Chair Tillman thanked them for their presentation. The CRA had questions regarding conveyance of the building, and/or conveyance without any deed restrictions, covenants and default issues. Attorney Spillias responded if the building was conveyed, and the new owner stopped operating, the organization could sell the building and there would be no default. Attorney Spillias explained conveyance of the building could take place with a reverter clause, if the building was not used for the intended purposes. He advised, as the matter pertained to tax credits and receipt of tax credits, those issues would need to be addressed and examined during negotiations. It was noted in order for the Boynton Beach Charter School to rehabilitate the building and take advantage of the tax credits; they needed to be an ownership entity. Five Towns College was proposing to lease the building for one dollar per year. There was a question on whether the CRA, in partnership with the organization could apply for the tax credits. Attorney Spillias advised all the possibilities could be examined. There was discussion on the Charter School's strong reliance on State revenues, and should the State amend, or end the funding, the impact it would have. Dr. Owens explained, as it pertained to their Charter School, they have a good academic record and had been given a ten-year contract for their present location. The school is presently in the fifth year of the contract and they have not ever come close to being closed down. At the mall location, the school was using a year-to-year lease. It was further noted that should the State decide to end the revenues to the school, the State must provide notice to the school in sufficient time to allow the school to convert to the private sector. The CRA was interested in learning whether a market analysis had been conducted by Five Towns College regarding the need for the type of programs the College would provide. Dr. Schmidt responded there had been an analysis and there was a need. The high school structure would be the administrative hub, having only a few classrooms. She added there were employment opportunities needed in the entertainment and business sectors. The pre- proposal indicated all the programs would be instituted, however, she clarified they would concentrate on the teacher education component. Parking was discussed. Five Towns College indicated they would work with the CRA to solve the parking aspects. Scheduling events at certain times of the day was mentioned by both organizations and both organizations indicated their facilities would create up to 35 jobs. The CRA was interested in how the organizations intended to support the maintenance of the facility. The Charter School intended to maintain the facility and indicated the organization has to own the property in fee simple to take advantage of the tax credits. There cannot be a leasehold interest, and it would become a securities matter when a tax credit is taken and sold to an investor bank. If lease were introduced, the financial structure would become defective and collapse, and the tax credits could not be used. The Charter School approached the 8 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL August 8, 2006 proposal with the understanding and expertise to assemble the needed resources. Those funds were available and accessible and their investors and bank were prepared to participate in the project and fund the $8.5M needed with hard dollars. It was also noted historic renovation was more expensive than ground up development. The reversionary clause would not impede the effort as long as the threshold requirement and intent were adhered to. The deed restriction presently on the property effectively was the reversionary clause. Should there be a default, a letter of intent from their lender would be issued and they would have the first mortgage lien, which could foreclose the property. The property, however, would be maintained and another tenant would be sought for the compatible use. There would be a total of $8.5M invested and the first mortgage was estimated at $5M net dollars leaving $3.5M in equity. The Charter School, if deeded over, would not provide revenue to the CRA. $500,000 in TIF funds was also requested. The Charter School indicated the property would then be on the tax roll because the for-profit ownership entity is a for profit taxable entity paying property taxes. Five Towns College responded they were not asking for funds and had the financial stability to take on the project. They explained that was why they had the lease option. Dr. Schmidt reported the school has been in existence for 34 years and had never come close to default. The College indicated they did not see the need for financial support. Five Towns College indicated they had originally planned to start their project with 1,200 students, however, they did not intend to hold all their classes at the facility. Schools in Palm Beach County have indicated they were amenable to on-site training at their own schools. The CRA expressed concern about school funding being changed by the whim of the legislature. The Charter School had provided a pro forma with the proposal that outlined the expenses for maintenance and operation of the facility. They further advised if the legislature cut or were to sunset the funding, notice would need to be provided by the legislature. They noted with a private entity, there would not be any notice. The Charter School reported the extra funding amply provided them the dollars needed to maintain the facility, which was considered separate to providing the schooling. The Charter School indicated they could fill the high school to capacity not only with their curriculum but also with Harid Conservatory providing cultural events. There are many auxiliary programs, after school programs and summer programs that could be added to cover the debt service should a need arise. The CRA requested information about whether there were any other properties associated with the site that would need to be developed. The Charter School advised their primary focus was the development of the old high school. Five Towns College had the cash to renovate the building, however, they did not need the Historic Tax Credits. Conversely, the Charter School did and would renovate the building to historic standards. Ms. Bright announced, for the record, the Five Towns College financial documents had been reviewed by Mr. Robert Reardon. Those documents were protected and were privileged and confidential. The CRA members did not review those documents, however Mr. Reardon did review the financials about four or five months ago, and verified his findings with the accountants. He indicated the College was a viable tenant. 9 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL August 8, 2006 Chair Tillman thanked both groups for their presentations. He announced the City needs to make the best use of the building. It was his opinion the approval of Five Towns College represented the best use. Motion Vice Chair Norem moved to recommend staff enter into discussions with Five Towns College to have staff enter into a development agreement. Ms. Horenburger seconded the motion for discussion regarding time frame. Attorney Spillias recommended staff use as much dispatch as possible because there are several elements to be negotiated and the process would not be a one-month process. Staff would move as quickly as possible and bring it back to the board. Vote There was a vote on the motion that passed 6-1. (Mr. Sims dissenting) C. Consideration of Letter of Intent (LOI) Marina Village Pad & Parking Mr. Reardon thanked the members for allowing him to respond to the Chairman's concerns regarding this item. He also thanked the board for reading the Consent Agenda Item pertaining to the easement on the Marina so the $2M county grant could be secured. Mr. Reardon reported for the last two months, he had been working diligently to secure a grant from the county for the Marina. At the end of the meeting the Chair and Vice-Chair could sign the letter, which he would witness and personally deliver to the County on the 15th of August. CRA Legal Counsel drafted the LOI to be reviewed by The Related Group and their legal counsel. Next year's budget could address the debt service for the first of the four years. With the additional TIF this would generate, the matter could be closed. Attorney Spill as advised he did not sign off on the agenda memo because he had not received it ahead of time to sign it. He recommended two changes; receive the documents early enough to sign off on, and the documents that do not require legal review not have a signature line for him. A few items Attorney Spillias focused on were if the CRA entered into the LOI, the due diligence period would begin as soon as the LOI was effective, not upon signing of the contract. While contract negotiations were ongoing, the CRA would conduct due diligence which includes environmental review and the review of title issues, marketability issues, etc. Usually, there was a time period after the contract that due diligence can be conducted, however because of the manner the deal was structured, the CRA must conduct due diligence after signing the LOI. The LOI specifically stated the CRA would not be required to enter into a contract until no later than five days after the due diligence is over. If defects were discovered, then the contract did not need to be signed. Attorney Spillias did, however, point out that after the ninety day period was over, if the CRA determines there is no basis to move forward, the monies would become non-refundable. Attorney Spillias advised the CRA was protected and would know well before the $100K was deposited whether they would enter into a contract. 10 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL August 8, 2006 Another issue with the purchase would be the gas pumps. The LOI indicates they were included as part of the property, however when the environmental review is conducted, if the CRA determines they should not move forward with the gas pumps, they did not need to be included in the purchase and there would be a pro-rata reduction in purchase price of the parking and the property. Ms. Bright announced The Related Group has the environmental study from when they purchased the property. The CRA would need to update it and Attorney Spillias recommended a Phase II Environmental Impact Study be conducted right away. He advised this was an additional cost with a potential risk, but if the CRA wanted to sign the contract, they would have had to do it anyway. Another item Attorney Spillias advised the CRA about was changing the nature of the recommendation of the agenda item to: ~ Authorize the Chairman to execute the LOI ~ Authorize the staff and attorney to begin the due diligence process ~ Authorize commencement of negotiations for a contract ~ Bring it back to the board for final decision Attorney Spillias clarified this included complying with the terms of the LOI which encompassed putting up the initial $100,000 deposit. Motion Vice Chair Norem made a motion to move forward with the four recommendations of the attorney. Ms. Horenburger seconded the motion. A vote was taken and unanimously passed. D. Adoption of the Final HOB Plan Economic Analysis by TCRPC Ms. Brooks indicated the CRA had the above information, which was provided by the Treasure Coast Regional Planning Council. She recommended memorializing the study by adoption. There were no changes to the content of the document, although there were some typographical changes. Motion A motion was made by Ms. Horenburger to adopt the Treasure Coast Regional Planning Council report that was presented in May 2006, and to adopt the final document. Vice Chair Norem seconded the motion that unanimously passed. E. Final Approval of Direct Incentive - Workforce Housing Ms. Bright indicated in January, the CRA staff requested the board pull the above item for general revisions. She advised this item represented the final document and both Amy Dukes and Ken Spillias reviewed the document. The key component was the CRA changed the responsibility to report on the developer who accepts and receives the incentives. There were communication errors with existing agreements, and the goal was if the board awarded an incentive, that the recipient of the award needs to communicate to the CRA the status of their 11 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL August 8, 2006 project, and work within the time lines and framework. Another change was they have separated the workforce component from public amenities. She indicated some of the larger scale projects were coming in and the board might want to provide an incentive in both areas, provided 100% of the TIF is not expended. This item would take away the scoring of the project and allowed for greater flexibility. She reminded the board they found developers were backing into dollars instead of doing their best work and this would allow the board to evaluate the project on issues such as great design, extraordinary value or the seed project that is necessary to fund. Ms. Heavilin discussed the units being constructed for the new developments were not affordable to the workforce populations. Ms. Heavilin pointed out maintenance fees alone were $500 per month, exclusive of any other fees such as insurance. It was noted developers do not come forward regarding that aspect. In addition to not allowing development front loading, the board discussed having a timeframe. With market conditions changing, the CRA should have the capability of re-examining the incentive for what was needed today as opposed to a few years ago. There were provisions such as timetables, and validation periods and extensions that were not contained in the document. Mr. Reardon explained these were guidelines. The controlling document would be a tight contract with the developer that would be spelled out in the funding agreement. He added they have tried to make the gUidelines available to a developer, so they would know what to expect. To date, there have been no applicants applying under these guidelines. The board agreed it should be indicated the agreement was not open ended. Many extensions were received recently and tying the incentives to the site plan extensions and renewals was discussed. Attorney Spillias clarified the incentives could be tied to anything the CRA deems appropriate, and there would be no problem with putting a comment in the gUidelines to put the developers on notice that this issue would be an element of the ultimate agreement. He also indicated it would be very clear in the contracts that there would be specific time periods tied to specific things. Ms. Bright explained she, Attorney Spillias, and Mr. Reardon would like to make this an agenda item for the next board meeting and have been discussing this issue with the other two groups. She indicated staff would need board direction on this item next month after they have a status report on both of the groups. Ms. Bright announced Boca Raton had held a special meeting on affordable housing and their City Commission was making a play that all affordable housing was coming to Boynton Beach. Ms. Bright reported she appeared at the meeting and thanked them for all their funding for affordable housing in Boynton Beach because she had been unsuccessful in instituting inclusionary zoning. She reported they were aware that Boynton Beach had no intention of becoming an affordable community at their expense, especially since they indicated their tax rolls were over $20B. Ms. Horenburger indicated it was important to determine how much affordable or workforce housing would be appropriate for Boynton Beach. She indicated she did not want the City of Boynton Beach to become known as the affordable housing capital of South Palm Beach 12 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL August 8, 2006 County. The effort must be distributed evenly in the county. She also expressed concern, given the attitudes demonstrated by Boca Raton, that Boynton Beach would be giving incentives and spending funds from Boynton Beach taxpayer monies, and would be the only entity doing so in the region. She indicated the CRA did receive a figure on the percentage of affordable housing in the City CRA area. She noted some cities have designated a percentage of units from each development be affordable housing units. Ms. Horenburger indicated that ratio should be maintained. Mr. Sims spoke about item number 3 and wanted the board to determine a range of affordable housing that would be needed. Mr. Myott suggested adding to item 11, page 4, a schedule and phases for the project so the applicant could indicate the schedule or whether it would be a phased development. Attorney Spillias indicated in reference to item 3, the document was a contract with standard breach of contract provisions. Staff agreed the comments made by Mr. Myott and Ms. Heavilin should be incorporated into the document. Motion Vice Chair Norem moved to approve this item with Mr. Myott's and Ms. Heavilin's comments incorporated into the document. Ms. Heavilin seconded the motion that unanimously passed. Chair Tillman requested, in view of the issues Ms. Horenburger raised, that a meeting be convened with the City Manager, followed possibly by a meeting with the CRA and the City Commission to finalize workforce housing in Boynton Beach. F. Final Approval of Direct Incentive - Public Amenities Ms. Bright explained this was the same procedure as Item E, however, they separated out the public amenities portion, i.e. wanting to work with a developer entity that wanted to provide public parking, or a park, or infrastructure. Those types of amenities would be served by this agreement. She asked if there were any other additions. Both statements previously made would also be added to this agreement. Motion Ms. Heavilin moved to approve the Direct Incentives for Public Amenities with the additions previously noted in Item E. Motion seconded by Mr. Myott and unanimously passed. x. New Business A. Consideration of FY 06/07 HOB Work Program Ms. Brooks explained this item was the result of comments made by the Chair and Ms. Horenburger at the last meeting. Now that the CRA was looking for a Master Developer for the 13 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL August 8, 2006 MLK acquisition, there were funds from Bond #2 they could reprogram. Staff reviewed the HOB Plan and the findings of the TCRPC study and staff identified some items to be addressed. The CRA was recommending in the Ocean Breeze work program, the acquisition of additional property on the west side to square off the block west of Seacrest. It was an odd shaped project site making it difficult for a really good site plan. Given the zoning regulations and the shape of the site, the acquisition would have a much bigger impact on Seacrest. The Boynton Beach Faith Based CDC Townhome project was on the east side of Seacrest around 5th Avenue and they were looking to create a 100% affordable townhome project in that neighborhood. The CRA had discussed with them the possibility of expanding that development, which would create a better project and help provide amenities. Ms. Brooks announced the Palm Beach County Housing Authority had received approval from HUD to raise the Cherry Hills redevelopment units for sale as single-family homes. The units do not go corner to corner and do not occupy the entire block. The CRA was looking for land acquisition to square off the blocks, where they could, in order to create a model block concept. Ms. Brooks indicated The MLK Corridor would be a catalyst project. To mitigate displacements, the CRA was recommending funding the Homebuyers Assistance Program to assist individuals purchasing homes in the neighborhood and bringing homes up to Code. Ms. Brooks recommended continuing the Urban Infill Housing program to create new single-family homes west of Sea crest by purchasing property. Ms. Brooks reported the Residential Improvement Program that exists has not been used. The individuals that have applied for program have not qualified. Ms. Brooks recommended reorganizing the entire program to target the HOB only. She also recommended the dollar match be set aside because the income for many individuals interested in the program has prohibited them from being able to come up with the match. Delray Beach's program does not require a match nor does it require the funds for owner/occupied properties. The Community Improvement Program was another program that had not been used. The CRA was seeking to reorganize the program into a youth program to be administered by the local CDC, who already has a youth program. This program would assist elderly or disabled persons, or others that were eligible for the program, by providing manpower to help these individuals with clean up and maintenance of their homes and community. The youth would be paid a stipend for their cOllege. If the individuals were too young, they could earn a home computer and community service hours. Ms. Horenburger noted Target has great youth programs where the children are given gift cards for their service. The CDC has discussed this matter with Ms. Brooks. The corresponding budget impacts for the projects were: ~ Provide Ocean Breeze Gap Funding would have $1.2M ~ Ocean Breeze property acquisition $500K ~ Boynton Beach Faith Based Townhome project $500K 14 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL August 8, 2006 ~ Homebuyer Assistance Program for 06/07 - $3M ~ Residential Improvement Program - $400K to be administered by the CDC for intake, marketing of the program, direction to the CRA for approval and then assist the resident and contractor ~ Cherry Hill for strategic acquisition - $lM ~ Community Improvement Grant (Youth Grant) in partnership with the CDC - $25K ~ Urban Infill Housing Program for acquisition of property for new or rehabbed single family homes - $1.8M ~ Total - $8,450,000 Mr. Myott questioned whether funding for HOA fees could be incorporated into the down payment assistance program. He also asked whether some type of CRA self-insured program could address the insurance costs. Ms. Brooks explained the HOA and insurance costs being included in the homebuyers assistance program was needed. When those other fees were added to the cost of the unit, it effectively reduced the amount of mortgage an individual could afford. Those fees were covered. Ms. Brooks elaborated the study by Florida International University did not base their figures for housing needs, on the jobs in the community and anticipated to remain in the community in the future. The figures were not based on housing stock. Many people were paying 50% of their income on housing stock as opposed to 35%, because of the job and housing cost gap. Ms. Bright explained this aspect has been outlined and marketed to the community. The funding has come from a bond and the funds must be expended. Ms. Brook clarified the reality was the CRA needed to acquire property and turn it into housing. She noted within three years, the CRA would have made a very big improvement. She asked the board approve this item so she can bring back the details of the youth program and the Residential Improvement Program, and as acquisition occurred, she will bring the contracts before the board. Motion Ms. Horenburger moved to approve the Heart of Boynton CRA Work Program and budget as presented, incorporating the comments made. Mr. Myott seconded the motion that unanimously passed. B. Consideration of Executive Director Six Month Wage & Benefit Adjustment Chair Tillman indicated the members received this information and the issue has not been publicly discussed. Ms. Bright explained the board packets contained a contract. When she was approved as the CRA Director, at the suggestion of the Chair, she was approved at the salary of the former director and the wage and salary review would be conducted six months from the contract date. August 14th the review period ended. The board had approved the Executive Director's job description in May. She has been on the job for fourteen months and a question was raised about the performance appraisal process and whether it would be used. She explained it was not necessary at this time, but she was looking for direction on this issue. Dr. Lindsey Willis had prepared a competency based performance appraisal. 15 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL August 8, 2006 Dr. Willis, who developed the program, was present and explained the form was long and she was present because Ms. Bright reports to seven individuals who cannot communicate except in public forum. She explained the idea was to rate her privately and independently, she would be scored, and then a consensus score would be reached that would be tied to an amount. This methodology eliminated bias and created a benchmark. Dr. Willis reviewed the competencies and the rating scale. Mr. Sims like that justification for low scores must be which would eliminate rater bias. There would be opportunities for comment by board members on the form, which was based on Ms. Bright's job description. Dr. Willis suggested Rev. Chaney not participate in the evaluation process due to his recent appointment. Ms. Heavilin indicated when she reviewed some of the categories on the form, there would be some categories the board could not rate her on. She asked if one member did not rate Ms. Bright in a category, whether it would skew the score. Dr. Willis responded in those instances the scores would be averaged by six members, as opposed to seven. Members could also write, "do not know" on the form. Ms. Bright also commented she did not expect a retroactive salary increase back to January, however, she asked the August 14th date be used for the compensation. Dr. Willis suggested Ms. Bright rate herself using the form and attach some work samples to it. She would then distribute the self-evaluation to the board members. The board members, separately, would review the information and complete their own evaluation by the next board meeting. The information would then be publicly tabulated. Motion Ms. Horenburger moved approval of the form with the comments incorporated by the various board members, especially Mr. Sims' most recent comment and with the anniversary date being retroactive to August 14th. Mr. Myott seconded the motion. Ms. Heavilin requested clarification. Chair Tillman explained Ms. Bright would complete a self- evaluation and distribute it to the members. The members will then marry that to their own evaluation and bring it back to the board. The members would not be conducting any one-on- one sessions regarding the evaluation. Dr. Willis indicated that could taint the process. Vote Motion unanimously passed. XI. Comments. by Staff There were no comments made by staff. 16 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL XII. Comments by Executive Director August 8, 2006 The MLK RFP's were received and Ms. Bright reported two proposals met the deadline and a third did not and was returned. Staff would begin reviewing the qualifications and the goal was to courier the qualified proposals to the board by Friday. Ms. Bright announced the City Commission would be recognizing Mr. DeMarco next week for his service. She invited the members to attend. Ms. Bright printed a cover sheet of an agenda item for the six-month board plan the CRA follows that would be used to apprise the City Commission of their efforts. Chair Tillman explained he had received a number of calls about how information is given to the City Commission and stressed the communication must be ongoing and properly channeled. The Executive Director meets with the City Manager. That relationship needs to be reaffirmed and continued. Chair Tillman indicated by doing so, the structure, integrity and creditability of the CRA will be maintained. If an individual Commissioner wants the Executive Director to do something, it may not always be in line with the CRA Director job responsibilities and in effect, that Commissioner may be asking the Executive Director to do something outside the purview of her job description. Ms. Heavilin explained while she was Chair of the CRA, it was requested she continue meeting with the City Commission for informational purposes. Ms. Bright's direction comes from the CRA board. The City Commissioners communicate through the Mayor and any directives should come from the CRA. Ms. Bright reported she meets with Commissioners about once a month for a recap and did not feel any Commissioner had been over utilizing her time, nor did she feel her job had been hindered. There were no written reviews of those meeting. The meetings were short and usually to answer questions Commissioners had from their constituency. Ms. Bright explained the CRA follows protocols. Mayor Taylor was present and indicated in his mind, and he assumed, in the minds of the other Commissioners, the CRA operates independently. The decisions, unless they have to do with zoning, do not come before the City Commission and those decisions are made independently. To date, he has met three times with the Executive Director, in the presence of the City Manager, once a month for informational purposes. He asked questions and noted not all Commissioners attend the CRA meetings and do not know what transpires. He reported he gains a lot of valuable information from those meetings. He announced he does receive calls from his constituency and he has never directed her to do anything, nor would he. He confirmed if he needed something, he would take it to this board. He recognized Ms. Bright works for the CRA, and indicated he would like to have the meetings continue. He also complimented the CRA on their selection of a tenant for the old high school. XIII. Comments by CRA Board Attorney Attorney Spillias provided an update on the St. Paul AME Church lease. He announced the Chair sent a letter to the State Attorney and they were waiting for a response. He also 17 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL August 8, 2006 indicated, in reference to the board's options regarding the lease of the property, the property was never utilized for the purposes of the lease and the lease had expired. Presently, the CRA has total control over the property. Ms. Bright indicated she had recently received a response on the issue and the State Attorney's Office determined the Andrew Luchey conversation ended abruptly and without enough information to close the investigation. Consequently, the City Manager has given her authorization to contact Investigator Gitto to continue her attempts to discuss the issue with Mr. Luchey and receive closure. It was unknown what the State Attorney would do if the discussions with Mr. Luchey did not take place. As it presently stood, the matter was returned to the Police Department for documentation and then the CRA could move on from there. XIV. Announcements by CRA Board None received. xv. Future CRA Special Meetings and Workshops: A. CRA Board Special Meeting - Selection of the Master Developer for the MLK Corridor Request for Proposal (RFP), August 17th at 6:00 p.m. at Clayton Conference Center at Bethesda Hospital, 2815 S. Seacrest Boulevard, Boynton Beach, Florida Mr. Sims asked what presentation gUidelines would be used in evaluating the MLK RFP's. There were two proposals to be heard and the presentations would be one half hour each, with a fifteen minute question and answer period. Motion Mr. Sims moved to accept the format for the presentations as discussed. Ms. Horenburger seconded the motion. Attorney Spillias also recommended when hearing the presentations, they be heard separately and apart from one another. Each party had the right to be present, however, the presentations were usually made separate. It was also suggested flipping a coin to determine which party would make the first presentation. Ms. Horenburger added using the coin method of selection to her motion. Mr. Sims did not object to the addition. Vote A vote was taken and unanimously passed. Ms. Heavilin indicated she had received information on a conference regarding board governance, which could replace what was currently being used. Ms. Bright indicated the American Assembly Steering Committee was planning for the next visioning process. She announced she had nominated the entire board. 18 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL August 8, 2006 Ms. Horenburger asked if anyone would be formally appointed to the Florida Redevelopment Agency (FRA). Ms. Horenburger indicated she was available to do this. She had asked Ms. Bright if she was interested, but her schedule would not permit this. Ms. Bright agreed the CRA should have its own representation and/or lobbyist. The ability to piggyback contracts for lobbyists was discussed. There was consensus to have a staff person become the FRA representative. Ms. Bright indicated Mr. Reardon would be the representative. B. CRA Strategic Plan & Budget Workshop - August 24th at 6:00 p.m., Boynton Beach Senior Center, 1021 S. Federal Highway, Boynton Beach, Florida XVI. Adjournment Motion A motion was made by Ms. Heavilin to adjourn. Vice Chair Norem seconded the motion that unanimously passed. Meeting adjourned at 10: 11 p.m. Respectfully submitted, (1/ u/'d1ii /7 i,' '- ~!ti~LL/}n(lI//~1 Catherine Cherry-Gu . rman Recording Secretary 080806 19