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Minutes 02-06-07 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY MEETING HELD IN CITY COMMISSION CHAMBERS, BOYNTON BEACH, FLORIDA ON TUESDAY, FEBRUARY 6,2007, AT 6:30 P.M. Present: Henderson Tillman, Chair Stormet Norem, Vice Chair Rev. Lance Chaney Marie Horenburger Steve Myott Guarn Sims Lisa Bright, Executive Director Ken Spillias, CRA Board Counsel Absent: Jeanne Heavilin 1. Call to Order - Chairman Henderson Tillman Chair Tillman called the meeting to order at 6:32 p.m. II. Pledge to the Flag and Invocation The board recited the Pledge of Allegiance to the Flag, followed by the invocation led by Reverend Chaney. III. Roll Call The Recording Secretary called the roll and determined a quorum was present. It was noted Mayor Taylor and Amy Dukes, Attorney with Lewis, Longman and Walker, were present. IV. Agenda Approval A. Additions, Deletions, Corrections to the Agenda B. Adoption of Agenda Ms. Horenburger moved to approve the agenda. Vice Chair Norem requested clarification that the board would be approving the agenda, which included the Consent Agenda and items could be removed from the consent agenda at this time. This was confirmed as correct. Vice Chair Norem pulled Consent Agenda Item VIII E. 1 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL February 6, 2007 Lisa Bright, Executive Director, announced Javier Camacho, from the Youth Gang Resource Center was present. Mr. Camacho had traveled from the Miami-Dade area to address the board about gang activity. She requested item, Item X A. be moved up on the agenda, in order to allow Mr. Comacho time to return to Miami-Dade area at a reasonable hour. Motion Ms. Horenburger moved approval of the agenda with the removal of Consent Agenda Item VIII E. being moved to the regular agenda and comments by Mr. Camacho moved on the agenda to immediately after adoption of the agenda, as Item C. Reverend Chaney seconded the motion that unanimously passed. x. New Business: - Heard out of order A. Evaluate Alternatives to Support the City's Strategic Initiatives Against Gang Violence. Ms. Bright explained at the last CRA meeting, the board was interested in supporting the City's efforts to deal with gang violence. Mr. Javier Camacho was present to provide a brief overview of the issue. Mr. Camacho was from Dade County and serves on the Fourth Annual Summit for Anti-Gang Violence. Mr. Camacho thanked the board and explained he was the Program Coordinator for the Youth Gang Resource Center, which was a program funded through the Alliance for Human Services in Miami-Dade County, the Miami-Dade Criminal Justice Council, and Miami-Dade County. His job is to disseminate information on gangs County-wide One program was the Youth Gang Resource Center, which provides parents with information to spot gang symptoms and in which he provided those outreach services. He advised he often speaks to community-based organizations that have parenting and life skill sessions to parents. GREAT (Gang Resistance Education and Training) provides training to Police Officers to go into the school system and discuss the issues with the students and staff. Another program funded was a hotline operated by the switchboard of Miami. This was an anonymous telephone number used to obtain information on gangs and resources available in the community. The third program, GUESS, was a therapeutic service that provides therapy to anyone gang involved or gang associated to assist them to leave the gang lifestyle. The fourth program was the Gang Summit. Mr. Comacho explained it was scheduled for April 13th and April 16th at the North Miami Beach City Hall. In prior years, up to 400 individuals attended the summit and this year, projected up to 500 individuals would attend this year. The summit would allow for two break-out sessions. Topics that would be discussed were intervention and prevention, and law enforcement and the federal view on gangs. 2 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL February 6, 2007 Mr. Comacho explained there was no cost to attend the summit and the registration form was being drafted. Ms. Horenburger suggested partnering with the tri-county region. She announced the federal government declared the area as a tri-county area, and she thought working together might yield a greater level of success. Mr. Camacho also announced another summit was being sponsored by the Homestead Police Department at Signature Gardens. Law enforcement personnel, police departments, community-based organizations, youth and parents and anyone else desiring to address the issue and become more informed on the topic could attend. Mr. Camacho explained the Palm Beach County Criminal Justice Commission was not directly involved with the Miami-Dade organization, but he thought it would be great to collaborate in this area. Ms. Horenburger explained, former Congressman, Harry Johnston, is the incoming chair for the Palm Beach County Criminal Justice Commission, which is engaged in five cities, including Boynton Beach. They have a gang program and Youth Violent Crime Prevention Program, which was being monitored through Florida State University. Ms. Bright announced they received a $300K unrestricted grant that would allow for program flexibility. She advised the City Manager met with neighboring cities and they were trying to harness some of the different programs. Mayor Taylor explained, he, the City Manager and the Police Chief attended a conference with the surrounding communities and compared the different programs and identified which worked the best. The $300K grant would be used for those types of programs, which could help prevent children from joining gangs. Mayor Taylor also advised he was working on a program implemented in Los Angeles, EI Paso and San Antonio, to go after gang members themselves. The program established exclusionary zones and if known gang members showed up in the zones, they could be arrested strictly for being there. This concept was tested in the courts and withstood legal challenges. Mayor Taylor advised he intended to ask the City Commission to review the initiative to see if they were interested in it. Examples of zones could be parks, school areas, shopping centers and others. The same concept applied to sexual predators. Chair Tillman asked about the effectiveness of the awareness programs. Mr. Comacho explained the more they were out in the community and promoting the programs in the schools, the more phone calls they received about therapeutic services and the more attendees they had at the summits. Mr. Comacho explained they received referrals from the Miami-Dade Juvenile Services Department, and the office of Juvenile Justice Delinquency. He announced the daily programs that were in place were a tremendous Success. Prevention programs, such as Project IMPACT and Panzou, were specific to the location of the gangs. The Panzou Program catered to the Haitian community. He clarified gang 3 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL February 6, 2007 problems can be specific to areas. Through these programs, parents or community organizations could also receive training by attending life skills or parenting sessions. On the job training is also provided in some of the programs. Chair Tillman reported at least four cities have been involved in meetings on the issue, which were Delray Beach, Lake Worth, Lantana and Boynton Beach. He expected to hear what direction they wanted to go in the sub-district part of the county and thought the collaboration would enhance the success. He thanked Mr. Comancho, the CRA staff and Miami-Dade County for putting forth the information. He requested staff keep the board apprised of information from the City Manager's office. V. Public Comments: Herb Suss asked whether there was a meeting held this morning with the City Manager and Intown Development. Ms. Bright responded there was no meeting with the City Manager. Mr. Suss indicated that between Intown and the other developer, they had reported they had $60M of New Market Tax Credits nationwide. He indicated $40M was in the hopper and $20M was left nationwide. He thought the CRA should take this under advisement before entering any situation with Intown. Mr. Suss asked whether Intown had issued a financial statement. Chair Tillman responded that information would be addressed later in the meeting. Mr. Suss spoke about the gang violence issue. He asked whether the CRA could get more money and suggested the old Civilian Conservation Corps (CCC) program as an alternative. He explained the CCC program, during the 1930s took people and put them to work. He thought some of those programs could be tied to gangs if they could reach out and give them some type of training. He advised there were federal programs for this. He thought gang violence was a national epidemic. Kevin Ballard, 550 NW 13th Avenue, spoke about the gang violence issue. He indicated he did not see gangs in the area where he lived. If the City instituted zones, he was concerned about the definition of the term gang member. He asked if he was talking on the corner, whether he would be designated a gang member. Chair Tillman explained people would be taught exactly what the issue was before they instituted anything. He did not want the effort to backfire and further indicated the more educated people were, the more likely it would diminish gang movement. The board noted gangs were a national problem. They noted they moved around and thought it would behoove the City to partner with surrounding areas and have a unified effort. VI. Public Hearing: 4 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL February 6, 2007 Old Business: None New Business: A. PROJECT: Proportionate Fair-share Mitigation Program (CDRV 07-001) City-initiated as per 163.3180(16), Florida Statutes Amendment of Land Development Regulations, Chapter 1.5, Article VI. Concurrency Requirements, to comply with new growth management legislation directing local governments to adopt a methodOlogy for assessing proportionate fair-share contributions from developers to meet traffic concurrency requirements for local roads. AGENT: DESCRIPTION: Hanna Matras, Planner for the City, presented the item. She advised the board the State was requiring all local governments in Florida have a program for traffic concurrency. They missed the December 1, 2006 deadline because the Department of Community Affairs (DCA) was not clear whether the City would fall under the purview of the County, who was in charge of traffic concurrency programs. This item would add Article 8 to Chapter 1.5 and amended Concurrency Requirements, Chapter 6. The program provided a methOdology for developers, when they added road capacity over the adopted Level of Service (LOS) to pay its share towards improvements of the impacted facilities. Ms. Matras clarified this only applied to local roads, not roads that fell under county and state jurisdictions. The City needed to review concurrency. It was also clarified the program would exclude Traffic Concurrency Exception Areas. Motion Ms. Horenburger moved to approve the request. Vice Chair Norem seconded the motion that unanimously passed. VII. Pulled Consent Agenda Items. VIII E Boynton Beach Heritage Celebration Invitation Kathy Biscutti, Special Events Manager, praised the CRA staff for their dedication and advised she started with the CRA as an Event Consultant. She reported she made a commitment to create memorable events, which would drive attendance downtown and encourage relationship with developers that would be a base of sponsorship in years to come. Her experience with the City was lacking. Ms. Bright reported there had been emails circulated regarding funding and funding for an additional event. She reported the CRA had worked for nearly a year on an Interlocal Agreement with the City and had agreed to coordinate with the City on special events. These special events were the Pirates of the Intracoastal, the Holiday Extravaganza (the 5 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL February 6, 2007 parade and the concert), the Medieval Faire and the Heritage Celebration. Ms. Biscutti was a shared resource between the City and CRA for these events. Ms. Bright explained at the last minute, an event was proposed by the community for Heritage Fest. The City Manager was approached for funding, and he approached Ms. Bright. Ms. Bright explained she was made aware of the event on January 9, 2007. The event was originally conveyed to have a cost of $3K. The cost, however, was then clarified to be $20K, which was not under Ms. Bright's authority. The celebration was supposed to be a joint CityjCRA event as outlined in the Interlocal Agreement. Since the request came between meetings, Ms. Bright asked the Chair to intervene on behalf of the board. The neighborhood community request was an unexpected event. Mr. Myott noted the event sounded like a great idea but thought the issue was whether the CRA could afford it. Chair Tillman explained he met with the City Manager. City Staff was working on the event for a year and when the CRA became involved, they got involved in funding and personnel. He explained last year there was a major issue when n event was sponsored and it rained. They made sure they would have signature and better events this year, which occurred. He explained recently, an event was added that did not involve a cost, and then a cost was attached to it. He indicated the CRA does not conduct business that way The board discussed advertising the event and noted the marketing of the event was entirely different this year than in prior years. It appeared the Interlocal Agreement had been fragmented significantly. Mr. Sims asked if the partnership had improved. Ms. Biscutti reported it was totally frustrating, at best. Ms. Bright explained the Interlocal Agreement was a partnership arrangement and the City and CRA staff were to handle the issue. Ms. Bright explained the City Commission was looking for a return on investment to bring the people to the downtown area. Ms. Bright also indicated she met with a developer who indicated as part of his project criteria he would include a $lM budget specifically to bring people to the downtown area strictly for the events on ongoing basis. Ms. Bright explained Ms. Biscutti has had to work through a framework where all the entities had budgets. She noted the event was a large multi-cultural event and the CRA was supporting it. But, the request was a last minute addition from the neighborhood. She indicated last year they were approached at the last minute to contribute $25K, which they did, but the result was the CRA had to cancel events. The two events in question were the Super Weekend Welcome Reception on Friday night and the Gospel Concert on Sunday night. Mr. Myott noted the reception invitation already went out and then proposed splitting the cost with the City and doing better next year. Vice Chair Norem seconded Mr. Myott's comments. 6 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL February 6, 2007 Ms. Bright thought there were two issues at hand. One was to get though the event. The other issue was to look at the Interlocal Agreement and how the process worked. Ms. Horenburger thought the issue was not planned, and each entity was operating on a different page. Robert Reardon, Assistant Director, advised there were funds in the Contingency Account, but he did not think the expenditure would be approved by the auditors. He advised he had no idea, specifically, on what the funds would be used for and he did not know if the issue was bid out. He suggested, after this event, the CRA consider abandoning the Interlocal Agreement. He reported the issue has become a nightmare for Bill Mummert and himself and he has no purchase orders for anything. Bills for the Pirates of the Intracoastal were still coming in four months after the event. He explained the City staff has been putting on the events for years and Ms. Biscutti has been cut out of the loop. He would rather see the CRA just give the money to the City and the CRA bow out of it. He explained when the budget was adopted, $50K was committed for Heritage Fest. He explained the request was not just for the additional $23K, it was actually $55K and with all the events combined, the entire budget was now $170K. The CRA would be paying $100K and they do not have it. Mr. Reardon suggested holding one event in the future. Mr. Reardon emphasized he was real nervous about how the extra costs have come about, and how they could be justified to the auditors. He indicated he was not sure if he could issue a check to the Finance Department. He explained a special account has not been set up in the City for the City and the CRA to fund and for Ms. Biscutti to control. Ms. Biscutti explained she had no information on the event. She reported she had been asking for the names of the speakers and the name of the gospel group for more than a month, and did not receive it. Reverend Chaney thought $l71K seemed extravagant. and paying Kool and The Gang $65K was outrageous. He wanted to know who negotiated the price. He explained the group has not had a hit in 15 years. Ms. Horenburger explained other requests came in and additional events were added on top of that. It was also noted the event in question was a duplicate event. Vice Chair Norem removed his second. Margie Adelsperger, Marketing and Communications Director, discussed the Interlocal Agreement and reported it diluted the CRA's message. She explained it was a challenge, working with different City departments on developing different logos, tag lines, flyers, posters and street signs because they do not have cohesive agreement on how it should be done. It has been done on a compromise basis. She advised that was her biggest concern . Chair Tillman indicated many of the issues need to be addressed on a higher level, and announced the CRA is not able to move forward with the request for funds. He thought after the event was over, the amount of monies expended might even be higher. He 7 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL February 6, 2007 reported although the agreement started in earnest, this happened last year and a pattern was established. Ms. Bright indicated Ms. Biscutti indicated the CRA would diligently work with the City for 2008. VIII. Consent Agenda; A. Approval of the Minutes - CRA Board Meeting - January 9, 2006 B. Approval of the Financials - January 31, 2006 C. Budget Amendment - 2006-2007 #01 D. Resolution No. 06-04 - Set Reimbursement to Waypointe Marine, Inc E. Boynton Beach Heritage Celebration Invitation IX. Old Business: A. MLK Corridor Update Ms. Bright explained there have been meetings on the MLK Corridor, which included Torti Gallas of Torti Gallas and Partners, and the firm of McCormack Baron Salazar. Ms. Bright explained when the City came to the table, all the partners were present. She announced Mr. Baron acknowledged he had considered some of the staff concerns that the market had shifted significantly and it may be difficult to sell market rate units on MLK regardless of the financing. Ms. Bright reported Attorney Spillias forwarded a development agreement to Intown for review. She advised they were working towards bringing an agreement back to the board on March 13, 2007. Attorney Spillias summarized the board's prior directive, that he review contracts and other documents to demonstrate the level of land control Intown had to date. He advised he had reviewed those documents immediately prior to the meeting. He could ascertain in the MLK Corridor there were a number of contracts. He advised some of the contracts date to 2005, and one from 2004, that included addendums extending closing dates. The most recent addendum extended to the execution of a tripartite agreement and he pOinted out some documents were not formal letters of intent. They were property owners indicating they wanted to sell to Intown. He also commented some of the contracts were not complete, or needed to be signed. Attorney Spillias reported his calculations of the properties that were under control or contract with Intown, or there was a letter of intent, or were represented as being in heavy negotiation with, amounted to about 6.6 acres of the area, which equated to slightly over 25% of the project area. 8 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL February 6, 2007 Of those properties that were under contract with the closing date addenda, those calculations equated to approximately 14%. Properties under contract, plus the letter of intent, calculated to be between 16% and 17%. Attorney Spillias advised that on February 1, 2007, the parties agreed there would be a schedule of tasks to be completed. The initial task was to review the contracts. The second task was to convey the information about the results. The third issue was to provide a status on the development agreement. Attorney Spillias announced comments were received back and incorporated into the next version of the draft. He suggested, if the board wanted to move forward with the agreement to have it ready for the March 13, 2007 meeting. There were key dates, which needed to be met, and he suggested holding a workshop on February 15, 2007. The purpose of the workshop was to present the draft agreement as it existed at that point in time. There would be blanks that needed to be filled in by the CRA and the developer. There would be provisions that he would need policy guidance on. Attorney Spillias advised after the workshop, those comments would be incorporated into the development agreement. He also explained it was hoped they would have received comments from the developers before the workshop. The CRA would like a new draft from the developers by February 26, 2007, with the agreement returned by the developer and received by the CRA no later than March 5, 2007, with a final product by March 13th. The board discussed items the CRA asked for at the last meeting. Attorney Spj/lias explained they received the contracts. He indicated with regard to the joint venture agreements, or partnership agreements with the partners, which were McCormack Baron, Torti Gallas, and Intown, they had not received those. Attorney Spillias explained he made it clear that he would recommend the CRA not enter into any agreement that was not an agreement with an entity or entities that puts all three of those entities on the line. Mr. Baron had indicated to him that prior to presenting the agreement to the board for approval, they would have their partnership agreements in place. For the immediate moment, however, the agreements were oral and not written. Ms. Horenburger asked if it was possible to enter into an agreement, contingent upon receiving the written agreements being put in place within a certain, short amount of time, and if not, then the agreement would be null and void. Attorney Spillias responded the board could proceed that way, but his counsel would be to have them in place prior to executing the agreement. Ms. Bright commented since staff had not met with McCormack Baron or Torti Gallas, with the exception of the initial presentation, it was apparent to staff that they had not conducted due diligence in the community. They were not aware of zoning or other factors. They were not knowledgeable about Boynton Beach, and the restrictions they had in place. Samantha Simons, Intown Development, explained her group knew they needed a comprehensive plan since they started the project over three years ago. She reported Torti Gallas knows they need to file it by August 15th and with the increase in workforce housing needs, the density needs to be changed. She reported the project was making 9 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL February 6, 2007 progress, they were working through some of the negotiations and they would have a Joint Development Agreement in place prior to contracts being signed. Ms. Simons clarified in reference to the New Market Tax Credits, Mr. Baron has proportioned those credits aside for the project, which help buy down retail opportunities in the project area. She explained the allocation of New Market Tax Credits was $60M, and that was discussed in the RFP. The figure, she advised, had not changed. Ms. Horenburger asked what densities were being discussed in the meeting. Ms. Simons explained what was presented in response to the RFP was 10.8 dwelling units per acre. Nancy Byrne, Assistant Development Director, explained they met with Torti Gallas, about the Heart of Boynton Plan. If the issue of density comes up, that would be the only point they would make in the development agreement now. She explained, the plan would need to be presented to the community first, and then the appropriate land changes would take place once it has been formally adopted by the CRA. Ms. Horenburger asked if changes in density were minimal, if the project was still feasible to the partners. Ms. Simons responded they needed to look at all aspects of how they would plan and adopt a plan that worked for everyone to make it a win-win for all parties. She explained she thought they were close and suggested crossing that bridge when they got to it. Ms. Horenburger asked what percentage or portion of the tax credits were committed to the project. Ms. Simons explained the Tax Credits were an annual allocation. The next round may have additional tax credits. She could not speak on Mr. Baron's behalf, but she felt he would set aside a proportionate amount. Ms. Bright noted at the last City Commission meeting, she was asked why the CRA was not supporting the 175,000 square feet of commercial space for Sea crest Village. She clarified the retail analysis the CRA had conducted with Howard Kohn, and Metropolitan Planning Council pOinted out 3,000 homes were a minimum to support that amount of retail. The Metropolitan Study, by Florida International University, showed the housing needs assessment pOinted out the average income was $26,000 and retail would not change the economic dynamics in the area. She wanted the board to note the City Commission had a concern about that, and that decisions were being based on those studies. She announced the CRA did not think, based on the Congress Avenue and Woolbright corridors that neighborhood retail was the appropriate venue for that area. Mr. Sims asked why the three pieces of information they had requested were not received. Ms. Simons expressed it was her and the partners' understanding, they were supposed to have the contracts submitted and then have 60 days to provide the other information. At the meetings with the City and CRA, they discussed having those items with the agreement. She thought the cart was being put before the horse. They would be more 10 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL February 6,2007 than happy to present the joint development agreements before the execution of the contracts. Mr. Sims read a portion of correspondence from the CRA attorney that indicated Intown was seeking to submit the document to a neutral third party. He pointed out if the letter was referencing the City, the City was not a neutral party. He wanted to know specifically, who was the third party. Ms. Simons explained Mr. Baron was perturbed that properties were being negotiated by the CRA before a tripartite agreement was executed, and a joint conclusion reached. If the CRA was seeking appraisals, there should be coordination and communications about said properties to avoid a bidding war. Ms. Simons indicated they were trying to find a neutral party, but the issue was not moot and they shared the contracts with Attorney Spillias anyway. She reported with the City and CRA property, Intown advised a total of 43% of the project area was secured. Attorney Spillias explained at the February 1, 2007 meeting, there was a concern the CRA was still negotiating for properties. A process for purchasing property in the MLK Corridor had been put into the draft agreement. The process was the developer would make every effort to purchase property, and only if there was difficulty purchasing a property, they would advise the CRA and the City, and identify the property. They would also provide any offers made and appraisals and then they would go forward. The issue was raised because Ms. Bright had ordered an appraisal on one of the properties in the MLK corridor. Ms. Bright explained at that time, she made it very clear to all at the table, that no negotiation or conversation had been held. The only thing that occurred was an appraisal was ordered and has not been received. Ms. Bright explained the previous attorney for Intown, Lee Worsham, was present at the meeting. The CRA felt they had missed the opportunity on the Jefferson Estate because they were not prepared. At the December 12th meeting, she explained it was made clear to her that if there were missed opportunities, and if funding were available, ultimately Intown would be the beneficiary of whatever land was purchased. The statement given to Ms. Bright, by Mr. Arthur D'Almeida, the Estate Attorney for Bob Katz, was that he was unsuccessful with striking a deal with Intown Partners on the two parcels on MLK, and would they be able to negotiate. Ms. Bright advised she would be happy to get an appraisal and would follow up with him. She ordered the appraisal on January 19, 2007 and it has not been received. She informed Intown she was ordering the appraisal, and that she was directed by the board to order an appraisal for the DelrayjBoynton Academy. Ms. Bright referenced a letter from the first meeting on September 20, 2007 with Intown Partners. She explained those issues were items they were dealing with for a comprehensive strategy back then. The CRA was Intowns partner. She explained they were trying to follow a protocol that changed daily and they do not buy land there. Attorney Spillias pointed out, the parties recognize that if they are all out in the area, doing their own negotiations, it gives purchasers the opportunity to play one off the other. They do not want prices increased for Intown or the CRA. He commented he 11 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL February 6, 2007 was disturbed at the letter as well. It appeared the issue keeps coming back there is a fear the CRA is negotiating deals and it was governing the conduct. Attorney Spillias received the letter by email earlier in the day but was allowed to review the contract prior to the meeting. Mr. Myatt left the meeting at 8:15 p.m. Reverend Chaney was concerned about the ownership of the property. The total property between Intown, the CRA and the City was approXimately 43%. Vice Chair Norem was disturbed by the letter. He expressed his thoughts there would not be an agreement ready next month and thought changing attorneys and delays were a pattern. He was ready to change and indicated if there was no draft, how could the board vote on it. Chair Tillman indicated the situation did not look good as a growing City. Over the past eight months, over $50K was spent on legal fees. He indicated the CRA needs to do business in a viable public way and they are entrusted to do so under State Statute. He asked for a motion to end this. Ms. Horenburger spoke about her comments in prior minutes about contractual agreements, which explained there would be a development agreement by March 13, 2007. Her feelings were there was a pattern to make public statements and not give clear answers to very specific questions. She clarified the vote was to have a March 13, 2007 deadline. She acknowledged the relationship deteriorated significantly and she did not know why. She was not sure this was the time to end the matter. Mr. Sims was disturbed with the letter, particularly after so much momentum was gained with the tripartite agreement. He asked the board to maintain its integrity and its work and honor the March 13, 2007 deadline. He expressed he was doubtful the agreement would be reached by then. He thought the CRA was being incredibly patient. Vice Chair Norem pOinted out there were certain items that had not been delivered. He was unsure of when to draw the line. Reverend Chaney concurred it was unfair to board counsel to receive documents at the last minute and thought it created an adversarial role. He agreed with Mr. Sims, that Attorney Spillias needed to adequately review the documents and then properly advise the board. He has received partial reports and if requested information could not be received by the agreed on date, the CRA should be properly apprised as opposed to learning about it at the last minute. He expressed frustration they had asked direct questions and had not received direct answers. He expressed the CRA wanted the project to proceed with fairness and integrity, but the CRA was not getting the straight answers it needed. There was consensus from the board to wait until the March 13, 2007 meeting to discuss the issue. 12 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL February 6, 2007 Attorney Spillias indicated they would hold a workshop on February 15, 2007 to review the work product in terms of policy decisions and in anticipation of a final contract. This would give him the information he needed to properly review the draft. He also indicated he brought Tara DUhy, a contemporary from Lewis Longman and Walker, P.A. into the arena so there would always be two knowledgeable individuals available to advise the board in the event he was unavailable. Motion Ms. Horenburger moved to hold a workshop on February 15, 2007 at 6:30 p.m. Vice Chair Norem seconded the motion that unanimously passed. Herb Suss requested to speak. Chair Tillman explained there was no public comment on the item. B. Dive Shop Lease Update Ms. Bright reviewed the item. Staff wanted to terminate the lease on December 31st in order to renovate the restroom at the marina. The goal was to create an interim lease until the construction plans and other issues would be finalized. Ms. Bright explained a long-term lease keeps coming back from Ms. Simmons counsel detailing long-term issues that the CRA was not prepared to address at this juncture. Ms. Simmons was currently paying $1.36 per square foot for their space, versus about $17 per square foot. The commitment was to build the public restrooms and the CRA spent $7,000 trying to negotiate a lease. Ms. Simmons was present to discuss the issue with the board. Ms. Bright clarified Ms. Simmons needed to have a lease in place in order for her to be able to operate as a dive shop. Lynn Simmons, 700 Casa Lorna Boulevard, announced she was the Owner of the dive shop. She reported she was unsure how they wound up in an adversarial pOSition and thought the lease was progressing well. She agreed attorney fees were becoming unreasonable and announced she had agreed to a one-page lease, which has evolved into a 10 page lease. She agreed to paying rent. Ms. Simmons advised she had a problem with two issues. She reported the business had become, because of the location and surrounding activities at the site, more than a dive shop. Over the last three years, she provided the public access to restrooms, she accepts and delivers deliveries and she is open all year from 7:00 a.m. to 7:00 p.m. She reported Until the public restrooms are complete, there were no facilities for charter boats and others to Use. She appreciated the board trying to work with her and she expressed her desire to work with the board. She further announced she has been at the marina for 24 years, and the business has grown from a miniscule business to the biggest dive operator in the City. She was not sure what to do about the lawyers. Mr. Sims discussed two items. One was insurance. Ms. Simmons discussed Item 24 of the lease, which indicates she has a $2M liability insurance policy, but the lease is 13 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL February 6, 2007 requiring her to pay property insurance of $500K. She does not OWn the property, and her insurance agency indicated the property owner should be paying the property insurance. Amy Dukes, attorney for the CRA explained that was not correct and she would need to review it. She thought the item could be remOVed. Ms. Dukes, also indicated the 10 page lease was Proposed by Ms. Simmons attorney, not the CRA. Ms. Dukes clariffed the CRA was interested in offering an interim lease, not a long tenn lease because they did not know what the facility would look like until they got in there and commenced renovations. The second item had to do with the prohibition of sale of food. Ms. Simmons announced she had no objection to the addition of this item in the second lease, but not for the first. Ms. Simmons had been providing the Marina Village construction crew with food and beverages. Ms. Bright expiained the food being soid in open containers was against CRA poiicy. She commented she Spoke with the boat owners and they preferred she offer pre-packaged food and soda outside in a vending machine. Ms. Simmons had no objections to the request. She reported food in open containers had been eliminated. Attorney Spillias explained it appeared there was a disconnect between Ms. Simmons and her attorney. He suggested having a meeting with a CRA representative, Ms. Simmons and her counsel. Ms. Horenburger asked about the size of the dive shop and how the leasing rate was established. Mr. Reardon explained the rate was inherited from Two George's, but the CRA owned the property. Mr. Reardon explained as a government entity, they do not pay taxes on the property, but when the space is leased, taxes would be paid, but he did not know how much the taxes would be. He explained he submitted a report to the County on January 15, 2007 outlining what leases they had on the building and advised next year they would be subject to property tax. Mr. Reardon asked Attorney Spillias if before any space was leased by the CRA, whether they had to publish announcements in the newspaper, annoUncing the leasing of space in order to allow another dive shop to opt to pay the regular retail price as OPPOsed to the $1.36 per square foot interim amount. Mr. Reardon reported he read the requirement in the Florida Statutes and he was unsure if they could continue the matter without doing so. Attorney Spillias clarified the issue was in some respects, a continuation of the eXisting lease which ended with Two George's. Attorney Spillias clarified when the CRA purchased it from Two George's they became Two George's successor. He did advise they would need to publish for the iong-tenn lease, but not for the interim lease. 14 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL February 6, 2007 Mr. Reardon clarified for the record, there was a men's and ladies' bathroom at Two George's. Ms. Horenburger thought the temporary lease should reflect a cost and assessment, and an in lieu of tax fee. She clarified the CRA did not know how much tax wouid be owed and this year the taxes would be increasing. She suggested obtaining the information from the Property Appraisers office and that the item be continued to the next meeting. She thought the calculations could be built into the lease. Ms. Bright indicated staff could prepare the market rate calculation and a tax rate calculation. The lease was a hold Over on a month-to-month basis. Ms. Bright explained the interim iease was to cover the time the CRA staff was going to evaluate, with their construction contractor, how long the renovations would take. Ms. Simmons already agreed to move to a temporary site, and at that time, a new lease would be negotiated. The board suggested having the attorneys consult on the matter. C. Review recommendations and responses to Transit Study RFP Ms. Brooks, Planner read the item and explained there is a Transit Concurrency Exception Area, (TCEA) within the CRA, which allowed them to redevelop without having to run into level of Service issues. Two major requirements of the TCEA With the County's approval was the CRA would proVide 5% affordable housing of all new development and conduct a transit study. The CRA staff did not think they needed the study, but the County did not agree, so an RFP was issued. She reported Hanna Matras, Economic Planner for the City, who also Works with the County on traffic issues, received three proposals. Staff reviewed the Proposals and recommended PBSJ be selected based on their experience with transit studies. Motion Ms. Horenburger moved for approval. Vice Chair Norem seconded the motion that unanimously passed. D. Presentation by Northwood Renaissance for a Community land Trust Ms. Brooks explained there was prior discussion about land trusts. She reported they were developing products to have more affordable units in the market. Examples of those were down payment assistance and rehabilitation programs, and the Workforce Housing Ordinance. She explained they addressed the moderate-income category but not the lOW-income category. She explained with a Comprehensive Housing Policy, they needed a tool for the very-low and iow-income families. A Community land Trust was a very good tool for that because it allowed for individuals who could not otherwise own a home from being precluded from owning a home and receiVe the tax benefits and equity benefits that are established through a land trust. Scott Kline, Northwood Renaissance, explained their miSSion was to put homes Within reach of working families in Palm Beach County and to improve neighborhoods through a holistic approach. The organization incorporated in 1992 and sought to proVide business and job creation in the Northwood Business District. In 199B they expanded 15 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL February 6, 2007 their focus to address the affordable housing issues in the City of West Palm Beach. In 2005, their services expanded to encompass County-wide issues. The organization received the Bank of America Neighborhood Builders Award. In 2005, they were named as USK Community Development Champion and they were also presented with the 1000 Friends of Florida Community Steward Award. They prided themselves on their successful track record in obtaining competitive grants and loans. They recently received $2.3M Federal Home Loan Bank's Edge Program for the Village Center project. They also received $9M in housing tax credits from the Florida Housing Finance Corporation to build 84 workforce rental apartments. In 2005 they received Citibank's Partners in Progress Award. The traditional solution was to provide public subsidies to an income-qualified buyer to bridge the affordability gap. The gaps, he commented, were becoming cost prohibitive. Not only were the subsidies not deep enough, but the homes were not being kept affordable. The primary benefits of a community land trust was public subsidies would be preserved and the trust would maintain the affordability of the home for future generations. The concepts of the land trust were they are driven by a community based non-profit entity, governed by a volunteer board representing the community's interest. The long-term control of the land is placed in the hands of the local community and the land trust ensures affordability, using a 99-year ground lease with the home buyer. Mr. Kline explained depending on how the trust was set up, the community land trust removed the cost of land from the equation and then reaches the buyers. Resale prices are restricted but the homeowner would still realize a reasonable return. They would only sell the home to income-qualified buyers and the trust had the first right of refusal upon foreclosure of the homes. Northwood has constructed and rehabbed 30 affordable housing homes and assisted a family to become a first time homeowner. They offer an alternative to renting. The largest segment of the workforce and low-income wage earners would never be able to own their own home without substantial subsidies. There is a non-stable rental market. The trusts provide stable living environments. He apprised the board over the last year, Palm Beach County lost of 14,000 rental units to condo conversions and the remainder of the rentals were higher end. The trust leverages public dollars and added value. Mr. Klein reported last year, more workers moved out of Palm Beach County than moved in the County and indicated the trust would help sustain local economies. He advised over the next few years, more than lOOK affordable units would be needed and having affordable units helps to sustain and attract businesses. They revitalize distressed neighborhoods, replaced ugly vacant lots in blighted areas and constructed homes that compliment the neighborhood. Ms. Brooks thought this would be a good tool to add to the other tools the board has instituted in the last year. She reported they were one of the few CRA's conducting these types of efforts and she commended the board for their foresight. She recommended staff begin negotiations with Northwood Renaissance. 16 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL February 6, 2007 Ms. Bright explained this was a property management tool. It was suggested Ms. Bright also contact the Delray Land Trust, but it was ascertained they did not have the level of interest Northwood had. Motion Vice Chair Norem moved to begin negotiations with Northwood. Reverend Chaney seconded the motion for discussion. Reverend Chaney asked about land trusts and if other land trusts had expertise. Ms. Brooks explained the Delray Land Trust was brand new, the County was forming one, but it was not up and running yet. She explained there was much more to a land trust than forming a corporation. She thought it behooved the board to work with entities that were familiar with non-profit housing. She announced the Northwood Renaissance staff had access to subsidies that large non-profit developers did not. Ms. Brooks expressed this entity had the most experience in this area and further expressed government entities do not have access to many subsidies. Ms. Horenburger asked if they entered into an agreement if it would be for long term. Ms. Brooks recommended making the agreement renewable based on performance and also recommended a percentage of land they purchase be put into the trust. The land needed to remain affordable. Ms. Murray, Executive Director, explained they work collaboratively with all land trusts. She assured the board, their mission was to preserve housing. Ms. Horenbuger thought if they entered into an agreement, they should have the ability to transfer the land from one trust to another if they wanted. Vote A vote was taken and the motion unanimously passed. Attorney Spillias explained his firm represents the Northwood Renaissance CDC. Ms. Bright indicated they could use other counsel. Attorney Spillias agreed and commented as long as both lawyers had a waiver, all should be fine. E. Approval of Mediation Settlement for Jesus House of Worship Attorney Spillias indicated there was a mediation session and a settlement proposed. He indicated the matter could be discussed openly, or if not, he suggested holding another Executive Closed Session. He suggested if an Executive Session was held, to hold it on February 15, 2007 before the workshop. At that time, he would explain the issues and if all the questions were answered, the board could vote on it that night. There was no deadline. Attorney Spillias preferred to hold a special meeting. Attorney Spillias announced for the record he was looking for guidance with regard to settlement and cost of litigation in Boynton Beach CRA vs. Jesus House of Worship, Case No. 502005CA004252XXXMB in the 15th Judicial Circuit in and for Palm Beach County. 17 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL February 6, 2007 The attorney client session would be at a special meeting at 6:00 p.m. on February 15th in Chambers, to be attended by the board, The Executive Director, and Legal Counsel. Motion A motion was made by Ms. Horenburger to hold executive closed-door session. Vice Chair Norem seconded the motion that unanimously passed. x. New Business: A. Evaluate Alternatives to Support the City's Strategic Initiatives Against Gang Violence. Ms. Horenburger indicated there was a task force in the Sheriff's Department and they were short personnel. She did not know whether the City had a Police Officer on the task force. She thought they should explore whether the shortfall in personnel was due, in part to the City and if so, to consider funding an additional Police Officer to become involved in the effort. Reverend Chaney asked if two members of the board served on the board, whether a Conflict of Interest existed. Ms. Bright explained as long as the meeting was noticed, there were minutes taken and the members did not discuss the issue among themselves outside of the meeting, there would be no conflict. B. Consideration of a Match to the Palm Beach County Development Regions Grant Program for Village Ice Cream in the Amount of $50,000 Ms. Brooks explained the CRA participates in the above program, which encouraged new and existing businesses to expand. The program provides a grant of up to $50K from the County and requires a match from the local municipality or the CRA. She announced Village Ice Cream Cafe applied for the grant and recently purchased space at Marina Village offering hand made ice cream and other confections. Ms. Brooks recommended supporting the application and recommending it for funding. She noted the applicant has closed on the property and the funds were budgeted. Motion Ms. Horenburger moved to approve the request. Mr. Sims seconded the motion that unanimously passed. C. Consideration to apply to the State for designation of the marina and mangroves as Waterfront Florida Communities. Ms. Brooks explained this was a State program designed to preserve and enhance existing marinas and keep them as working marinas. Many marinas were being lost to condominium construction and the State was attempting to preserve the traditional and marine related jobs in the community. The measure was also an economic development initiative. If the City received the designation, they would receive up to $50K to plan for improvements to the marina. 18 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL February 6, 2007 Motion Ms. Horenburger moved to approve the item. Vice Chair Norem seconded the motion that unanimously passed. D. Consideration of Entering into a Purchase Agreement with Thomas Walsh for the 211 E. Ocean Avenue property Ms. Bright explained over a year ago, Ocean Avenue was designated as the downtown pedestrian core. The subject property was across from Kenny's Market Place, and CRA staff negotiated a purchase agreement for $850K. The CRA would like to purchase the property to activate redevelopment Motion Vice Chair Norem moved to approve the purchase agreement. Ms. Horenburger seconded the motion that unanimously passed. E. Consideration of additional staff. Ms. Bright explained staff was overworked and needed two positions; one in the administrative area and the other in property management. She informed the board the positions were in the budget. She reported they were buying quite a bit of property and they needed a person in Property Management. She explained no matter how bleak the market, they were always looking for individuals to purchase land. The property management position would be about $70K and the administrative position in the mid $30K range. Reverend Chaney requested an organizational chart, and a personnel plan indicating what they have for the budget, what positions they had, what they were projecting and future projected positions. Ms. Bright pointed out there were some vacancies that were not filled that were absorbed by staff. There was consensus to fill the vacancies. Attorney Spillias advised there was no vote needed. XI. Comments by Staff XII. Comments by Executive Director Ms. Brighter reported Arthur Slavin, 500 Ocean Plaza, indicated to Ms. Bright he has documents due. He was supposed to submit documents in 90 days. Ms. Bright announced they would bring something back next month. Ms. Bright announced Palm Beach County Days were on March 6, 7 and 8th and she would make arrangements for members wanting to attend. Those interested should let her know. 19 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL February 6,2007 Ms. Bright thanked Mr. Reardon for his efforts and for the photos of the Heart of Boynton (HOB) Beautification Day. The motto was Neighbor Helping Neighbor, sponsored by the CRA and St. John Missionary Baptist Church. Mr. Reardon gave a Powerpoint presentation about the HOB Beautification Day. Reverend Chaney commented 150 volunteers showed up for the Beautification Day and it was one of the best events he attended. Ms. Bright indicated she was working with Mr. Reardon to show the board what projects were cancelled and the potential unrealized TIF funds. The information would be brought to the next meeting. XIII. Comments by CRA Board Attorney None. XIV. Comments by CRA Board None. xv. Adjournment There being no further business to discuss, the meeting properly adjourned at 9:35 p.m. Respectfully submitted, 11/ '~ (' 1, U' Catherine Ch rry-Guberman Recording Secretary 020706 20