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Minutes 02-15-07 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY SPECIAL MEETING HELD IN THE BOYNTON BEACH WOMENS CLUB, BOYNTON BEACH, FL ON THURSDAY, FEBRUARY 15, 2007 AT 6:00 P.M. Present: Henderson Tillman, Chair Stomet Norem, Vice Chair Rev. Lance Chaney Jeanne Heavilin Marie Horenburger Steve Myott Guarn Sims Lisa Bright, CRA Executive Director Ken Spillias, Board Attorney I. Call to Order Chair Tillman called the meeting to order at 6:20 P.M. II. Roll Call The Recording Secertary called the roll and determined a quorum was present. III. Agenda Approval a. Additions, Deletions, Corrections to the Agenda There were no additions, deletions or corrections to the agenda. b. Adoption of Agenda Motion Motion to adopt the agenda was unanimously approved 7-0. IV. Approve Contract for the Treasure Coast Region Planning Council Market Analysis and Development Program for the MLK Corridor- 2007 Ms. Horenburger asked what would happen if this report came back indicating the project was not feasible. Ms. Bright responded that she could have signed a cheaper contract that would have provided just the market study. Ultimately, the CRA Board would be responsible for developing the MLK Corridor target area, so she requested a feasibility study identifying what could be built there considering current market analysis. Mr. Bressner, City Manager, had emailed inquiring about the difference in the TIF projection with the current developer. Ms. Bright had 1 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida February 15, 2007 explained to Mr. Bressner that the current study, only a feasibility study, suggested a much lower unit rate. Therefore, the TIF projection for Seacrest Village is extremely high, which is the reason some of those units in that market study are as low as $436k for market rate up to $487k. Realistically, if this board moves forward, it needs to identify the type of product and development program. She hoped the study would be done before the development agreement comes back to allow for evaluation of suggestions and recommendations made by the City's Commission. Ultimately, staff can be redirected to move forward with some type of development program, even if this developer does not work out. With the results of this study, the board will be able to answer questions and know what to look for moving forward. The Treasure Coast study was part of the analysis and the board had to generally adhere to it. Unaware that the market was going to die, it was the board's assumption that they could sell those units at $436k to $487k. The CRA clearly knows differently now. It used the information it had then, when the high end units were $285k. Ms. Bright indicated that even if the Treasure Coast Regional Planning Council (TCRPC) Proposal for Market Study, Planning Evaluation & Analysis, and RFP Assistance for "Heart of Boynton" Redevelopment Project came back saying there is no way we can do a project of this size and magnitude in today's market, the CRA would be secure. Typically, a lender requires a developer to do its own market study. The CRA wanted some other validating document before signing on the development agreement. Motion Mr. Myott moved to approve the Contract for the TCRPC Market Analysis and Development Program for the MLK Corridor-2007. Ms. Horenburger seconded the motion that unanimously passed. v. Adjournment of Open Public Meeting Before adjourning, Attorney Spillias read into the record that the attorney/client meeting would be about the case of Boynton Beach Community Redevelopment Agency v. Jesus House of Worship, Inc. Case No. 502005 CA 004252 XXXX MB, Circuit Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida. He asked that the open public meeting be adjourned and everyone in attendance leave, other than board members and the Court Reporter. Motion Ms. Horenburger moved to adjourn the public meeting. Mr. Myott seconded the motion that unanimously passed. The open public meeting was recessed at 6:25 p.m. 2 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida February 15, 2007 VI. Executive Attorney/ Client Session Discussion of settlement negotiations or strategy session related to litigation expenditures in the case of Boynton Beach Community Redevelopment Agency v. Jesus House of Worship, Inc., Case No. 502005 CA 004252 XXXX MB, Circuit Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida VII. Adjournment of Executive Attorney/Client Session VIII. Call to Order of Open Public Meeting The open public meeting was reconvened at 6:45 p.m. IX. Consideration of Approval of Mediation Settlement Agreement in Boynton Beach Community Redevelopment Agency v. Jesus House of Worship Attorney Spillias had an executed copy of the Mediation Settlement Agreement by the Jesus House of Worship. He indicated it was the Board's determination to approve the settlement agreement. Motion Mr. Myott moved to authorize and approve the executed Mediation Settlement Agreement. Chair Tillman seconded the motion that unanimously passed. Attorney Spillas advised he would send a copy to opposing counsel, dismiss the lawsuit and set up a closing on the property. X. Adjournment Motion Chair Tillman moved to adjourn the special meeting at 6:47 p.m. Mr. Sims seconded the motion that unanimously passed. Respectfully submitted, Robin Hemingway Recording Secretary 02/16/07 3 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY WORKSHOP MEETING HELD IN THE BOYNTON BEACH WOMENS CLUB, BOYNTON BEACH, FL ON THURSDAY, FEBRUARY 15, 2007 AT 6:30 P.M. Present: Henderson Tillman, Chair Stomet Norem, Vice Chair Rev. Lance Chaney Jeanne Heavilin Marie Horenburger Steve Myott Guarn Sims Lisa Bright, CRA Executive Director Ken Spillias, Board Attorney I. Call to Order Chair Tillman called the workshop meeting to order at 6:47 P.M. II. Approval of the Agenda Attorney Spills indicated that anything could be discussed at the workshop keeping in mind that no actions would be taken. III. Old Business a. Consideration of Draft Master Development Agreement with Intown Partners for Development of the Martin Luther King Corridor Mr. Myott wanted to explore what everyone's roll would be moving forward. Attorney Spillas responded the City Commission had directed the City Attorney and the City Manager to take the lead negotiating position in the tripartite agreement. The negotiations would include the Executive Director of the CRA as a resource, in addition to anybody she felt needed to be there for support, including the attorney. The decision was not intended to exclude CRA counsel. Mr. Spillias had received a short letter indicating the City Commission had made the decision for Mr. Bressner, City Manager, and Mr. Cheroff, City Attorney, to be the lead negotiators on the contract. The City Commission voiced the fewer people involved the better in terms of efficiency and effectiveness. Therefore, only Mr. Bressner would be present to represent the City at the negotiation sessions and the CRA had been asked to limit participation personnel to Ms. Bright and Attorney Spillias. Additionally, since the City Commissioners had indicated possible interest in attending some of the negotiations, Mr. Cheroff and Mr. Bressner had determined these meetings would be public with 1 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida February 15, 2007 minutes taken by the City Clerk's office. Moving forward, all negotiations would be open to the public. Chair Tillman indicated that when read back, the minutes and motions from the City Commission meeting pretty much standardized what was in play. He suggested that if the CRA Board needed to ratify its position or argue what its position is, that should be done at the next meeting, making it official. Attorney Spillias opined that rarely is this type of negotiation done in public. He and Ms. Bright had recently addressed this due to the misinformation that was being distributed by the developer. Ms. Bright confirmed this was her interpretation. She had previously complained about the continued communications between Commissioners and the developer. Ms. Horenburger had been approached by a reporter who said Commissioner Weiland and Commissioner Rodriguez had taken the entire matter with every possible detail of the MLK corridor redevelopment back to the City Commission. She responded to the reporter that her understanding was the CRA had always had a tripartite agreement since the August meeting. Now, the City Commission had simply shifted negotiations on the agreement. The City Commission had not taken over everything, only the responsibility for the negotiations. Mr. Sims asked if the board, now utilized as a resource, had the authority to disagree with this agreement. Attorney Spillias indicated that the board had the authority to not approve based upon the following reasons: One, this is an autonomous board with its own legal identity. It is obligated to make its decision in public meetings with public discussion and within the context of its' fiduciary obligations. Two, to the extent that the City Commission wanted any funding from the CRA or property that the CRA owns, the board had total control of that decision. The City could not direct or supersede the board. Absent that, they did not have the power to make the board agree. Third, there could be provisions the CRA did not like, and it had the right to not agree. Mr. Sims wanted clarification on whether these "public meetings" take the place of meetings previously understood to be "community meetings". Attorney Spillias indicated that the community meetings were intended to provide community input on the details of the project. These would be contract negotiation meetings that the City Attorney and City Manager decided to now open to the public. Ms. Horenburger clarified the agreement would establish the partnership between the three parties, not all the details of the development. Mr. Myott wanted to know if community forum meetings for feasibility and analysis would work with the Treasure Coast Regional Planning Council Proposal for Market Study, Planning Evaluation & Analysis, and RFP Assistance for "Heart 2 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida February 15, 2007 of Boynton " Redevelopment Project. Ms. Bright responded that Treasure Coast is most likely going to simply update an existing study, probably the June, 2005 Seacrest study. These are not community meetings, rather development scenarios with planners making recommendations. In her discussions with Intown in September, she asked them for a community meeting for November. Torti Gallis, of Torti Gallis and Partners, indicated she could not afford to fly in for that particular meeting. Then when the meeting occurred, Ms. Gallis acted surprised. This community wanted to have a meeting every three months, which was clarified to the partner and documented in Ms. Bright's notes. She indicated that at one of the very first development meetings, the CRA had been given a timeline, a copy of which would be provided for the meeting. Samantha Simons with Intown Partners had only included one charrette, even though the community was looking for a great deal of input. Those community residents expected CRA meetings with proper public notice. Ms. Bright also had correspondence from Gertrude Sullivan, a community resident, explaining she was concerned that she missed one of those meetings at St. Paul AME. Those meetings were not appropriately publicized and Ms. Bright advised Ms. Simons we could not operate that way as partners. Chair Tillman indicated that the meetings held in the church were supposed to be focus group meetings to be held in different places in the community. With the board's process in place, he wondered if there was any current or long term liability, since the board had someone waiting for an RFP. Attorney Spillias responded that the board retains the right at all times to enter into an agreement or not, and to reject proposals at any time. Ms. Horenburger questioned the expansion of the proposal and any issues involved. Attorney Spillias indicated an RFP area could not arbitrarily be expanded. Ms. Bright stated that substantial deviation would be open to interpretation, adding that they have repeatedly tried to include the Public Works site. Ms. Bright commented she had not been able to secure the information needed to answer very specific questions that had been asked. Rev. Chaney wanted clarification regarding the City asking for limited participation in one paragraph and at the same time saying it is a public meeting. He wondered if the meeting had been appropriately presented to the publiC and questioned what would happen if he wanted to attend the meeting with the public. Attorney Spillias responded there were different types of "public meetings". The public meeting that a board holds has certain legal requirements that cannot be dismissed, such as notice. The mere fact that the meeting is open to the public does not mean that it is the kind of public meeting that requires those notices. The City Commission certainly does not need to allow anyone else to participate in any way other than to observe. 3 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida February 15, 2007 Mr. Norem wanted to know what would happen if a vocal Commissioner started participating. Attorney Spillias cautioned that if Commissioners start participating, then it would become a public meeting that had to be publicly noticed. Ms. Heavilin inquired if any of the Commissioners or anyone on the CRA Board were to participate or comment during the meeting, would that impact the CRA's ability to vote on the agreement. Attorney Spillias did not like the fact that, due to claims of obstructionism and lack of cooperation on the CRA's part, the City Commission had taken an action where they now have taken on the responsibility incurred. He suggested the City Manager and City Attorney, coming into this at a very difficult time, were trying to establish framework to make sure that communication gaps could no longer occur because it would all be written down. Mr. Spillias did not know how well that would work. He recommended since nobody could know what the dynamic would be like, it would be wise to let this first meeting be the City Commission's show. He would report back to the board, which would then be better positioned to make a good judgment. Ms. Heavilin added that she was very uncomfortable with the fact that they were opening negotiations up to the public and she doubted negotiations could be streamlined with the Commissioners and press attending. Mr. Norem stated that, to date, he did not know of any member of the CRA board that had participated in the legal negotiations. The board had never been involved in the negotiations of this agreement, but that could change next week. Attorney Spillias agreed and added that one of the difficulties is that no one had designated a member of the CRA board as a negotiation participant. Rev. Chaney questioned what would happen if the City Commission and the developer agreed to this agreement and this board did not. Chair Tillman confirmed that if the agreement came back around and the CRA did not want to sign it, it would not be signed. Ms. Bright indicated she felt less pressure now that they were considered a resource and confirmed that they were anxious to move forward. It had been uncomfortable to be accused of something that was not even remotely accurate. Mr. Sims wanted everyone to know that he saw a large number of community folks speaking up for the CRA, so the "approval rating" must be looking good. He suspected this new process would be a mockery and would become more difficult. He believed the Board still had something to loose if it did not recognize that much of the community believed in the CRA. He opined if this negotiation falls apart, the CRA would be bashed by the community. He suggested it would be wise to be proactive to maintain their approval rating. 4 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida February 15, 2007 Chair Tillman reminded everyone that when the incident happened in the Mall and the City did not respond, the CRA held a meeting immediately and discussed a ninety day information blitz. The CRA had initiated a proactive process and should be more in the forefront, especially right now. He reported that Ms. Bright had already started some projects with public relations firm in Ft. Lauderdale to push these concepts forward. He also shared a current Boynton Beach CRA, Heart of Boynton, article in a Delray Beach magazine. The CRA was doing the right thing and needed to keep doing the right thing. Ms. Bright added that she had spoken to community residents and shared that the CRA was still committed to all the initiatives and was not stopping or going anywhere. Mr. Myott stated that the Treasure Coast Proposal for Market Study, Planning Evaluation & Analysis, and RFP Assistance for "Heart of Boynton" Redevelopment Project would work for the future of Boynton development whether the agreement with Intown moved forward or not. The CRA had done something positive, since all information gathered would be valuable. He requested the negotiation minutes be added to the CRA March meeting. Ms. Bright confirmed she would debrief everyone with the highlights and distribute the actual minutes. Mr. Myott wanted to know who would be responsible for approving those minutes and Attorney Spillias indicated the City Commission would approve the minutes. Rev. Chaney voiced that although it seemed they were living under the shadow of being dissolved if they did not agree with certain factions of our community, that was really not what this was about. It was really about the CRA doing the best it could for the citizens and the community, not worrying about the repercussions. Following up on recent inquiries, Ms. Bright suggested the group come up with a plan to start making acquisitions on the corridor. Ms. Horenburger confirmed the CRA was responsible for redeveloping the MLK corridor and as such, the CRA needs to continue to do its job. If the negotiations did not work out with the developer, the CRA needed to be in a position to move forward. Chair Tillman endorsed business as usual. Ms. Horenburger expressed that they should consider a consensus for Attorney Spillias to develop a lobbyist registration policy for the board. Discussion indicated it would be considered. Mr. Norem then read verbatim a short overview of the experience of Bethesda Healthcare System regarding a joint venture project they had been involved in. 5 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida February 15, 2007 IV. Adjournment Motion Mr. Sims moved to adjourn the meeting at 7:26 p.m. and Ms. Horenburger seconded the motion that unanimously passed. Respectfully submitted, ,~ ~~WC4(f Robin Heming ay Recording Secretary 02/15/07 6 t!~~qY~T2~ eRA . East Side-West S'lde-Seas'lde Renaissance COMMUNITY REDEVELOPMENT AGENCY Special Meeting Thursday, February 15,2007 Boynton Beach Women's Club Boynton Beach, Florida 6:00 P.M. I. Call to Order. II. Roll Call. III. Agenda Approval. A. Additions, Deletions, Corrections to the Agenda. B. Adoption of Agenda. IV. Approve Contract for the Treasure Coast Regional Planning Council Market Analysis and Development Program for the MLK Corridor- 2007 V. Adjournment of Open Public Meeting. VI. Executive Attorney/Client Session. Discussion of settlement negotiations or strategy session related to litigation expenditures in the case of Boynton Beach Community Redevelopment Agency v. Jesus House of Worship, Inc., Case No. 502005 CA 004252 XXXX MB, Circuit Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida. VII. Adjournment of Executive Attorney/Client Session. VIII. Call to Order of Open Public Meeting. IX. Consideration of Approval of Mediation Settlement Agreement in Boynton Beach Community Redevelopment Agency v. Jesus House of Worship X. Adjournment. I. II. III. IV. r ~~~qY~T2~ eRA . East Side-West S'lde-Seas'lde Rena'lssance COMMUNITY REDEVELOPMENT AGENCY Workshop Meeting Thursday, February 15,2007 Boynton Beach Women's Club Boynton Beach, Florida 6:30 P.M. Call to Order Approval of the Agenda Old Business A. Consideration of Draft Master Development Agreement with In Town Partners for development of the Martin Luther King Corridor Adjournment vi ~' ~ sS ~.... (' oflJl 0- "'~ rY DRAFT DRAFT DRAFT February 15, 2007 Lisa Bright, Executive Director Boynton Beach Community Redevelopment Agency 639 E. Ocean Avenue Suite 103 Boynton Beach, FL 33435 Subject: Proposal for Market Study, Planning Evaluation & Analysis, and RFP Assistance for "Heart of Boynton" Redevelopment Project Dear Ms. Bright: Thank you for considering the Treasure Coast Regional Planning Council (TCRPC) to provide the Boynton Beach Community Redevelopment Agency with planning and economic review and analysis services regarding the "Heart of Boynton" redevelopment proj ect. Weare submitting this proposed agreement which includes a draft scope of services and proposed fee to perform such services. If you have any questions or wish to further refine our suggested scope of services, please contact us at your earliest convenience. However, if the agreement meets with the CRA's approval, we ask that you sign it in the space provided and return a signed copy to our office for execution. I. Scope of Work PLANNING & ECONOMIC ANALYSIS AND ASSISTANCE FOR HEART OF BOYNTON REDEVELOPMENT PROJECT - $65,000 Per our understanding of the project, the CRA selected a proposer (In-Town Development Group) in response to an RFP issued by the agency in 2006. It is our understanding the CRA wishes to utilize the TCRPC to assist with a comprehensive planning analysis and evaluation of the plans under consideration as well as provide an update to a 2005 market study completed by ERA for the project area. Accordingly, TCRPC intends to retain Economic Research Associates, an economic consulting firm with extensive knowledge of the South Florida market generally and Boynton Beach in particular, as a subconsultant to complete the tasks identified above. The specific tasks to be undertaken are delineated as follows: Task 1: Project Initiation Meeting: · Participate in a meeting with City of Boynton Beach and CRA staff, other agencies as identified by the City and CRA, and other project representatives as identified, to fully understand how the project has evolved since June 2005, review current project issues, DRAFT, REV. 2/15/2007 DRAFT DRAFT, P. 1 OF 4 confirm current site plan/architectural renderings/uses, and identify other policy/program Issues. · Review of relevant supporting documentation, including previous planning studies, the CRA Plan, retail market studies, and FlU's housing needs assessment. · Confirm the project approach, schedule, and study deliverables. · Participate in a site and area tour of the CRA. Task 2: Key Market Interviews · Interview selected commercial real estate specialists, development/institutional representatives, project managers, and other market sources in Boynton Beach and/or Palm Beach County to gauge market response to redevelopment potentials in the CRA · Assess views of competitive product types, absorption potentials, target markets, pricing, development costs and other economic issues as appropriate, and · Address current strengths and weaknesses of the redevelopment opportunity and the experience of comparable and competitive projects in Boynton and/or surrounding/nearby communities such as Delray Beach or other parts of Palm Beach County. Task 3: Economic & Demographic ProiIle Update · Utilize current economic and demographic data to evaluate appropriate economic indices or "drivers" designed to measure fundamental sources of demand for the proposed uses, including population and household growth, distribution of age cohorts, etc. · Evaluate employment growth and distribution trends and characteristics to understand potential local demand for the project's workplace/office uses, and · Examine household/consumer and employee retail spending patterns and other measures of economic growth that inform potential supporting and destination retail uses. Task 4: Real Estate Market Conditions · Update historic and current market performance for the proposed uses, including mixed- density rental and for-sale housing, multi-tenant office/workplace, and supporting and destination retail and supporting services such as lodging · Assemble and analyze secondary data on development patterns such as building permits and housing starts, pipeline projects, etc. · Research prospective buyer profiles, including demographic characteristics, to understand market positioning of new residential development in the CRA, and · Update inventory, vacancy trends, commercial and residential rents, historic absorption/leasing activity, tenant characteristics, key operating metrics such as seasonality, demand generators and segmentation, and buildout/schedule of new and proposed comparable or competitive projects Task 5: Market Potentials/Redevelopment Programming · Define relevant trade areas and market characteristics for. each use · Test potential market demand/redevelopment opportunities for each use using appropriate demand methodologies (expressed in gross square feet, number of residential units, etc.) · Estimate likely absorption and phasing considerations and identify an achievable (market supportable), five- and 10-year development program that considers current market conditions, near-term demand expectations, local and regional growth indices, locational characteristics, and phasing/buildout · Outline preliminary redevelopment and implementation strategies for the CRA that examine critical issues such as public-private partnerships, public investment and leverage ratios, etc. 2 Task 6: Interim Project Review Meeting · Attend one (1) interim project review meeting in Boynton Beach · Present the findings of the demographic and market conditions updates as well as key recommendations regarding redevelopment potentials in the study area to TCRPC and CRA staff Task 7: Economic Impacts · Estimate the economic impacts accruing to the City of Boynton Beach, Palm Beach County, and other levels of government as appropriate · Calculate expected project benefits, including construction and permanent employment, permanent payroll; estimated taxable sales and sales tax receipts, business/licensing and other use taxes, estimated assessed values, and property tax receipts accruing to relevant jurisdictions Task 8: Planning Evaluation and Assessment · Attend one (1) initial project meeting with CRA and City staff, other relevant agencies, and project representatives to review project concepts, urban design considerations, housing types and quantities, project scale and massing. · Participate in one (1) design session with City and CRA staff, other relevant agencies, and project representatives to evaluate alternative design approaches, given alternative development program pursuant to findings of market study. · Present the findings of the planning evaluation and assessment, with project recommendations, to a public meeting of CRA, City, and other representatives. Recommendations to include illustrative and schematic renderings, as many as necessary, to illustrate key project components. Task 9: Final Presentation & Report · Participate in one (1) final project meeting in Boynton Beach with City and CRA staff (and other project representatives as appropriate) · Conduct a final presentation to the CRA Board in Boynton Beach · Prepare draft and final project report TCRPC anticipates data, mapping, and financial data to be provided by the Boynton Beach CRA and/or City of Boynton Beach. II. Schedule It is TCRPC's understanding the CRA anticipates completion of this work effort within three to six months. A specific timeframe will be developed with the Boynton Beach CRA staff at the project initiation meeting. III. Type and Format of Deliverables TCRPC will provide the Boynton Beach CRA the following items as deliverables under this contract: . Three (3) color copies and two (2) electronic copies of the Draft Report . Ten (10) color copies and two (2) electronic copies of the Final Report 3 TCRPC will also format the data from the Draft and Final Reports into slides appropriate for inclusion in a powerpoint presentation. Other electronic formats to be determined in collaboration with CRA staff. IV. Fees and Reimbursable Expenses TCRPC will perform the professional services described in this proposal for a fixed fee in the amount of $70,000. This includes travel, out of pocket expenses (printing and reproduction costs) film processing, mail, couriers, sub-consulting costs, and other costs related to the professional services to be provided. Fees shall be submitted as follows: $35,000 or 50% upon execution of this contract $17,500 or 25% upon submittal of draft report $17,500 or 25% upon submittal of final report APPROVED AND ACCEPTED on this ... day of ....................,2007 By: Lisa Bright As Executive Director, Boynton Beach CRA By: Michael J. Busha, AICP As Executive Director, TCRPC 4