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Minutes 05-08-07 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY MEETING HELD IN CITY COMMISSION CHAMBERS, BOYNTON BEACH, FLORIDA ON TUESDAY, MAY 8,2007, AT 6:30 P.M. Present: Henderson Tillman, Chair Rev. Lance Chaney Jeanne Heavilin Marie Horenburger Guam Sims Lisa Bright, Executive Director Ken Spillias, CRA Board Counsel Absent: Stormet Norem, Vice Chair Steve Myott I. Call to Order- Chairman Henderson Tillman Chair Tillman called the meeting to order at 6:33 p.m. II. Pledge to the Flag and Invocation The board recited the Pledge of Allegiance to the Flag. Rev. Chaney gave the invocation. III. Roll call The Recording Secretary called the roll and determined a quorum was present. IV. Agenda Approval A. Additions, Deletions, Corrections to the Agenda Ms. Bright removed Item IX. A, "Approval of City/CRA lLA for the Avenue of the Arts," as the City had agreed to pay for that. Ms. Heavilin pulled Consent Agenda Items C and F. Ms. Horenburger pulled Consent Agenda Item A. Rev. Chaney pulled Consent Agenda Item D. Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 B. Adoption of Agenda Motion A motion was made by Ms. Heavilin to approve the agenda with the changes. Ms. Horenburger seconded the motion that passed unanimously. V. Consent Agenda A. Approval of the Minutes-CRA Board Meeting-April 1, 2007 (pulled by Ms. Horenburger) B. Approval of the Monthly Financial Report and Budget Amendment C. Sea Mist Acquisition Status (info. only) (pulled by Ms. Heavilin) D. Review of Infill Site Plans & Home (pulled by Rev. Chaney) E. Marketing and Communications Update (info. only) F. Residential Improvement Grant Program (info. only) (pulled by Ms. Heavilin) VI. Public Comments Chair Tillman opened the floor for public comments. No one having come forward, Chair Tillman closed the floor to public comments. VII. Public Hearing Old Business: None New Business: Attorney Spillias announced Items VILA. and VII.B. were quasi-judicial proceedings. He provided an explanation of the quasi-judicial procedures and requested board members disclose whether they had any ex-parte communications. None were disclosed Attorney Spillias administered the oath to all persons who would testify. A. Harbor Cay Site Plan Time Extension 2 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 Description: Harbor Cay (SPTE 07-006) Sid E. von Rospeunt, Managing Member for Harbor Cay, LLC Harbor Cay, LLC East side of Federal Highway; approximately 150 feet north of Gateway Boulevard Request for a one (1) year site plan time extension for Harbor Cay (NWSP 06-011) approved on May 2, 2006, from May 2, 2007 to May 2, 2008. 1. Project: Agent: Owners: Location: Kathleen Zeitler, City Planner, set forth the request and advised the project was approved for 23 townhouse buildings ranging from 2,534 square feet to 2,599 square. The project was delayed due to required reconfiguration of underground utilities, civil and engineering plan revisions, platting delays and construction plan revisions necessary to address the conditions of approval. Their concurrency project buildout year is 2009. The site plan time extension was still subject to the original 85 conditions of approval. Staff recommended approval to extend to May 2, 2008, with the following conditions of approval: (1) the site plan time extension would be subject to all previous conditions of approval; and (2) the applicant would pay the Capacity Reservation Fee amount due to the City prior to final action by the City Commission on the site plan time extension request. Chair Tillman opened the floor for public hearing. Sid E. von Rospeunt, Representative of AmerCan Development Corp., Managing Partner for Harbor Cay, LLC, set forth the circumstances surrounding the requested extension. He advised they had worked with City staff on the water issue for the past eight months. A six-foot wide public easement was recently discovered on their property, and would be utilized to remedy the issue. Bonnie Jones, 628 Lakeside Harbor Drive, commented the homeowners had tried to work with Mr. von Rospeunt; however, he was not willing to work with them on several issues with respect to the entry gate, community dock and Lakeside Harbor Drive. The homeowners would like for the project to move forward and upon approval of the extension, would request construction of a privacy wall and for the gate to be moved back. Mark Maher, owner of the property at 618 Lakeside Harbor Drive adjoining the developer's property on the southeast side, remarked the extension should have been applied for in advance of the expiration of the site plan time extension, and he did not believe the developer had any intention of building. He believed the project would be beneficial and would agree with the extension if the developer installed a stucco masonry wall on the site separating the single-family properties from the project; relocated the residential community gate to the east side of his property, ensuring it was in proper working order; and completed all work within the next four months. 3 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 Mr. von Rospeunt responded as follows: (1) they had no objection to the gate being removed; however, if it was removed, application would have to be made for a building permit and it would be necessary to have a turnaround lane installed in front of the gate and past their property; (2) the road currently at the site is approximately five to six feet less in width than the new road they were are putting in; (3) when the developer purchased the property, the gate was inoperable as it was damaged by the hurricane; (4) they improved the site by ridding the property of rats and undesirable apartment dwellings; and (5) the site plan provided for a masonry wall to separate the residences from the project. Mr. Sims requested clarification as to the issue of the wall and inquired as to when the wall would be constructed. Mr. von Rospeunt advised they could not build a wall unless they had the approval of their utilities and a development order. No one would issue any permits to them for a perimeter wall in order to protect the residents at Harbor Cay, as well as to the south, north and east of the community. No one else having come forward, Chair Tillman closed the floor for publiC hearings. Chair Tillman commented he had listened to several extension requests and project proposals and on several occasions, homeowners professed their opposition to the project. However, there appeared to be no overall resistance to this project, with the exception of some minor issues which should be worked out. Secondly, with regard to the issue previously addressed by Ms. Horenburger wherein the City Commission would explore an 18-month extension in lieu of the 12-month extension, Chair Tillman inquired of staff whether this had been explored and the status with respect thereto. Kathleen Zeitler advised the Code had been revised to allow for 18 months instead of 12 months for the initial site plan approval. Ms. Heavilin expressed confusion as to several of the comments made. The applicant did not respond to the issue of the dock damage and she requested he do so. Mr. von Rospeunt maintained they had addressed the dock issue with the homeowners on several occasions. They pulled permits for the dock and filed the extension for the dock permit; however, they would want to perform the dock work when the entire area was redone in order to avoid construction of a substandard dock. The developers had suggested they would remove the dirt and put in gravel and brick pavers, similar in fashion as shown in the site plan for the pool area and plaza. Rev. Chaney requested that Mr. von Rospeunt clarify the commitments made by the developer. Mr. von Rospeunt commented they committed to build a new dock to enrich the community, and it was their intention to do so. However, if they bore the expense, they would build the dock to their specifications in order that it would be constructed properly. 4 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 Rev. Chaney inquired of staff whether any Tax Increment Funding (TIF) or other incentive funding was involved in this extension. Mr. Zeitler replied there were none. Ms. Horenburger remarked that it appeared the developer was unable to move forward with the project for the reasons outlined in the backup material. However, after considering all of the comments made, she concluded there was also a problem with cooperation on both sides. She inquired as to why the developer was unable to meet the City's requirement to pay the Capacity Reservation Fee within seven days of the original site plan approval and whether this was an undue requirement which the developer could not meet while others could. Mr. von Rospeunt commented they considered the requirement to be unreasonable as they did not know how many water meters were needed at the time. Ms. Horenburger inquired of staff as to how common it was for people to not pay their Capacity Reservation Fee in a timely matter. Ed Breese, Principal Planner, indicated the fee was generally paid within seven days. Motion Ms. Horenburger moved to grant the request for a six-month time extension, subject to payment of the Capacity Reservation Fee and compliance with all of the other conditions of approval. Mr. Sims seconded the motion for discussion purposes. Chair Tillman advised he believed granting a six-month extension could set a negative precedent, as it had been the City's policy to grant twelve-month extensions. Further, the developer requested the twelve-month extension in order to deal with hardships and Chair Tillman would want the developer and homeowners in the adjacent communities to have as much time as needed in order to resolve the issues. Mr. Sims contended he would be concerned about setting a precedent and would not be comfortable with granting a six-month extension at this time, although it could be something for the board to explore. He added he hoped the developer and homeowners would work through the issues within the year, as he would be hard pressed to vote in the developer's favor again. Ms. Heavilin advised that she would support the 12-month extension and urged the developer and residents to be open minded and work things out. Rev. Chaney commented he would support the 12-month extension as well and emphasized cautioning developers coming into the City to do due diligence in working with neighbors, as it was the board's responsibility to ensure the needs of the entire community would be served. 5 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 Ms. Horenburger inquired of Attorney Spillias whether the board would be setting a precedent if the Capacity Reservation Fee was not paid as required by the City's Code. Attorney Spillias advised the standard for making a decision was based upon competent substantial evidence to support the decision. In terms of precedent, the board members would have to consider whether they treated people who were similarly situated in a similar fashion. These were basically the standards to be applied by the board in making a determination. If the board believed there was substantial evidence that established the individual was not similarly situated, that would be the basis for a decision to grant something other than a year's extension. If the board did not believe the differences in this instance were significant enough to determine Mr. von Rospeunt was not similarly situated, then there would be no evidence. Staff had recommended a year's extension after their review, which would be part of the record as well. Chair Tillman called the question on the motion to grant a six-month extension. Vote The motion failed 1-4, Rev. Chaney, Ms. Heavilin, Mr. Sims, and Chair Tillman dissenting. Motion Mr. Sims moved to approve the one (1) year site plan time extension including all conditions recommended by staff. Ms. Heavilin seconded the motion which passed 4-1, Ms. Horenburger dissenting. B. Boynton Beach Lofts Site Plan time Extension 1. Project: Agent: Location: Description: Boynton Beach Lofts (SPTE 07-007) Bradley Miller, Miller Land Planning Consultants James A. Seifert/Addison Properties of South Florida, Inc. 623 South Federal Highway Request for a second one (1) year site plan time Extension for site plan (NWSP 05-008) and height exception (HTEX 05-001) originally approved on April 19, 2005, from April 19, 2007 to April 19, 2008. Gabriel Wuebben, Planner, provided an overview of the project. The Planning & Zoning Division received the extension request on April 4, 2007, approximately ten days prior to the expiration of the previous site plan time extension. According to the applicant, since the project's last site plan time extension, the developer had completed working drawings, had worked toward the marketing and sales of future units, completed a website, cared for onsite landscaping and secured County Civil permits. To date, the developer had spent nearly $730,000 toward the project. However, as a result of current market conditions, the developer was not able to pull a permit and was currently working with the CRA to modify the plans to make the project more 6 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 economically feasible. In terms of traffic concurrency, it appeared the applicant had adequate time. Records indicated the Utility Reservation Fee had been paid. The original project would still be subject to the original conditions of site plan and height exception approvals. Therefore, staff recommended approval of this request for a one (1) year time extension for the site plan and height exception. All conditions from the original approvals must still be satisfactorily addressed during the building permit process. Bradley Miller, Miller Land Planning Consultants, advised he was present to represent the applicant. He reiterated the request for the extension, and as staff covered the majority of the points, he advised he would be pleased to address any specific issues brought forth. Chair Tillman opened the floor for public hearings. No one else having come forward, Chair Tillman closed the floor for public hearings. Rev. Chaney inquired as to the type of modifications sought, whether they pertained to workforce housing incentives or other modifications. Lisa Bright, CRA Executive Director, advised modifications were sought as described by Rev. Chaney and based on discussion with Mr. Seifert. A site plan was already in motion. In at least seven meetings, staff attempted to save this project in terms of the real estate market decline. Motion Ms. Horenburger moved to approve the site plan extension as recommended by staff. Mr. Sims seconded the motion. Ms. Heavilin inquired whether the motion included the height extension. Ms. Horenburger advised it included all conditions recommended by staff. Chair Tillman called the question on the motion. Vote The motion passed unanimously. C. Land Development Regulations Rewrite Code Review 1. Project: Land Development Regulations (LDR) Rewrite (CDRV 07-004) Use Matrix and Notes City-initiated Agent: 7 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 Description: Group 2 deliverable as indicated on the proposed LDR Rewrite Work Schedule, including the Zoning Use Matrix and corresponding Notes and Restrictions to ultimately replace and enhance portions of the current LDR Part 3, Chapter 2. Zoning, Sections 5 through 8. Mike Rumpf, Planning & Zoning Director, presented the second work product of the Rewrite Project, which is a subset of the next deliverable entitled "Zoning Use Matrix, Notes & Restrictions." In addition to researching different topics and issues which needed to be incorporated into the code, staff was engaged in a reorganization of the regulations. Basic components of modern code rewriting were being used, which would be a Use Matrix. He reviewed the Project Objectives, which include preserving initial work efforts; maximizing user- friendliness; continuing public involvement; using a flexible approach and maintaining priority functions of the Planning & Zoning Division. As to the Code, staff is within the proposed rewrite to be represented by a new Chapter 3, Zoning, and specifically, Use Regulations, in Article IV. A PowerPoint presentation was provided, a copy of which is available in the City Clerk's Office. Mr. Rumpf reviewed the first draft product, the Use Matrix, and the Attributes, which included "All uses explained in one table," "Like uses merged for simplicity/consistency," Terminology from North American Industrial Classification System (NArcS) implemented," "New (or improved) use titles and descriptions," and "continued implementation of M-1 study" and set forth an explanation of each category shown on the slides. He then reviewed the second draft work product including "Attributes," which were comprised of "Consolidation of regulations," "Clear and concise wording," and "Addition of needed restrictions." Mr. Rumpf provided an explanation for each category. Staff recommended approval of the draft work products to the City Commission. Ms. Horenburger commented under Live-Work Units, "consultant" was not listed in home-based businesses. She advised she was a consultant and had occupational licenses with the City and County. Under Adult Entertainment, "Separation," she inquired whether this pertained to Separation only and whether the 1,000-foot requirement was mandated. Mr. Rumpf advised he did not believe there was a standard mandate for separation; however, the separation requirements vary from jurisdiction to jurisdiction. Ms. Horenburger commented, with regard to churches, residential zoning districts, public usage districts, recreation district or schools, she would like to see separation distances greater than 1,000 feet. She inquired whether this issue was studied. Mr. Rumpf advised it was studied thoroughly. There were residential zoning districts scattered throughout the City of Boynton Beach, including the Planned Industrial Development District. Ms. Horenburger inquired as to how many zoning districts were permitted. 8 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 Eric Johnson, Planner, Planning & Zoning, advised that currently, one zoning district had been identified in which Adult Entertainment would be allowed. Previously, if a use was not indicated anywhere in the Code, it was allowed in M-l. This was eliminated. Ms. Horenburger, questioned the language relating to, Sightseeing and Scenic Tours, pertaining to "Vehicles in support of the operation that are a size in excess of a standard parking shall be stored in a zoning district where outdoor storage of vehicles is allowed./I She inquired whether the City's trolley would be included under this section, and whether the reference to storage pertained to overnight storage. Mr. Rumpf replied in the affirmative, adding this was a principle use. Ms. Heavilin inquired whether a use not currently provided for would come under M-1. Mr. Rumpf replied in the affirmative. Ms. Heavilin remarked she read through the Rewrite and figured it out very quickly. She commended staff for doing a great job in facilitating the public's understanding of the intricacies of zoning districts. Chair Tillman opened the floor for public hearings. No one having come forward, Chair Tillman closed the floor for public hearings. Motion Ms. Heavilin moved to receive and file. Mr. Sims seconded the motion which passed unanimously. VIII. Pulled Consent Agenda Items Item A- Approval of the Minutes - eRA Board Meeting - Apri/l0, 2007 Ms. Horenburger referred to a discussion in the minutes regarding a motion she made allowing for a Treasure Coast Study. The minutes also noted she elaborated the study might indicate more analysis was needed. During the discussion, a June 12, 2007 deadline was requested with respect thereto. She recalled making a statement at that time to the effect that the board could always reconsider and vote to move the deadline. That language did not appear in the minutes. Ms. Horenburger therefore requested that the minutes be corrected to include the omitted language. Motion Ms. Horenburger moved approval of the minutes as corrected. Ms. Heavilin seconded the motion that passed unanimously. 9 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 Item C - Sea Mist Acquisition Statue (info. only) Ms. Heavilin indicated she wanted to hear more about the kind of improvements to be made and whether certain improvements could be required as the City was not going forward with the purchase. Ms. Bright advised Mike Simon was working with Code Enforcement relating to the dumpster in the trolley stop as well as other improvements. Staff had have been working with Nancy Byrne and the Development Department, and some of the items were not coded. As the Sea Mist has been at its location for some time, many things had been overlooked even prior to the redevelopment of the Marina Village area. Two staff members serve on the board for the Marina Village. Therefore, both sides were being heard in terms of where the Sea Mist area is. Ms. Horenburger inquired whether, with regard to the PBC Development Regions Grant, the County grant guaranteed perpetual public access or would the City move closer to its original intent regarding the purchase. Ms. Bright advised the City went ahead and purchased the public parking spaces in order for the Sea Mist to remain a viable business. Now that they do not wish to move forward in that direction with the City, staff is hoping to work with the PBC Development Regions Grant next year. Ms. Horenburger inquired whether it was known if the Regions Grant would help keep that area more public once funding was received, as she believed it should be. Ms. Bright advised there would be no reasons that caveat could not be added by the City. Motion Ms. Horenburger moved for approval to cancel negotiations with the Sea Mist. Rev. Chaney seconded the motion that passed unanimously. Item D - Review of Inti/! Site Plans & Home Designs (Parker Site & Habitat Site) Rev. Chaney requested this item be pulled as he wished to reiterate that when the CRA provided the land for Habitat for Humanity, it was with the understanding that they would upgrade the design of the home. Vivian Brooks, Planning Director, advised that Habitat was to install a metal roof, which they never did, and enlarge two of the bedrooms. This would be one of the nicer homes, with more architectural detail added. Ms. Brooks suggested Habitat look at homes on Old Boynton, just south of Boynton Beach Boulevard, where the homes were smaller, affordable, and well- designed, and would be a good example for this community, based upon the Heart of Boynton (HOB) Plan. 10 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 Chair Tillman inquired whether the CRA could institute specific standards for the land governed by the CRA. Ms. Brooks advised that the development agreement with Habitat already provided for the number of bedrooms, minimum size, and roof type required to meet the design criteria of the HOB Plan. Rev. Chaney inquired whether the Community Development Corporation (CDC) was being held to the same standards for the land provided to them by the CRA. Ms. Brooks replied in the affirmative, adding that the CDC's development agreement was exactly the same. The CDC installed the metal roof and enlarged two bedrooms. Rev. Chaney articulated the designs indicated a driveway coming in and out of Seacrest while one unit had them in the back, which he believed would be better. Ms. Brooks advised that the property in back of the other two lots belonged to someone else. The City did not permit shared driveways, and the lots were too narrow on the other corner. Ms. Heavilin inquired whether it would be possible to have a circular driveway similar to what was done on Gateway Boulevard with the road widening. Ms. Brooks advised that it might be possible as the lots were 60 feet wide. She would have to determine whether there was enough arc landscaping in order to avoid a sea of concrete. Ms. Brooks advised upon direction of the board to move forward, the plans would then be submitted to the City. Motion Rev. Chaney so moved. Ms. Heavilin seconded the motion that passed unanimously. Item F - Residential Improvement Grant Program (info. only) Mr. Heavilin expressed concerns regarding the need for the improvements, especially roofing, and how to ensure that the roofs are maintained; whether that meant changing the process or changing the person accepting applications, and whether greater marketing efforts were required. Ms. Brooks advised that staff met with the CDC and direct marketing efforts would be made. The CDC would leave door hangers for people not at home whose roofs required attention. Financial assistance would be available for those with limited incomes. Continuing contracts would be executed next month with the general contractors, who indicated the roofs would be attended to during hurricane season. 11 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 Ms. Heavilin suggested that perhaps counseling could be provided to some of the families requiring assistance. Mr. Sims inquired as to some of the CDC's marketing strategies. Ms. Brooks advised that they did not have to do much marketing as the Heart of Boynton newsletter generated a lot of interest. However, most of the people required more than $20,000 and that meant partnering with the City and utilizing the City's funds. Mr. Sims inquired whether there was any dialogue with the City with regard to residents requiring assistance. Octavia Sherrod, Community Redevelopment Manager, contended that a good deal of counseling and convincing was required. There were fewer barriers over the last couple of years as people had been forced to participate because of the hurricanes. People must be convinced that it is all right to be in need. She added that once a neighbor or relative participated in the program, this could provide an incentive for more residents to participate. She advised that she had a list of people waiting to participate. Mr. Sims inquired whether the ten-year lien rule was imposed by the City and if the rule itself presented barriers. He wondered whether consideration should be given to amending the rule. Ms. Sherrod inquired whether Mr. Sims was suggesting that the lien be eliminated or lowered. Mr. Sims contended it could be either; however, he suggested it be amended in order to alleviate the situation. Ms. Sherrod replied that the process was working for her and she had no problem utilizing the funds. The process was amended initially when the program began, and the 15-year encumbrance was amended to 10 years. The policy was consistent with policies of other municipalities as a one-time gesture of good will. It was not intended to maintain the same homes time after time. Ms. Heavilin wondered whether a lien would be placed, if a resident applied solely for CRA money. Ms. Brooks advised that the CRA would not place a lien against the property. Ms. Heavilin inquired whether the CRA would pick up some of the City's backlog. Ms. Sherrod advised that she did refer people located in the CRA district to the CRA for assistance. Rev. Chaney inquired whether the City had any applicants that could partner with the CRA. 12 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 Ms. Sherrod replied they made referrals to the CRA. They would also advise the CDC of the referrals and applications sent to those people. Rev. Chaney commented that the CRA should use due diligence in following up on families that qualify for assistance. He expressed concern that the CRA was limiting the scope of the program to roofs only. The Residential Improvement Grant also pertained to interior improvements and if the cost for the improvements was under $20,000, it would seem that a plethora of repairs would be needed. Ms. Brooks noted that roofs were very visible and if people proceeded with their roof repairs with the assistance of the CRA, this might bring about trust in the program, and would improve the appearance of the neighborhood. Rev. Chaney contended that he could understand placing emphasis on roofs, but suggested the program remain open to all aspects. Ms. Bright commented that she believed this was a special part of the program to be addressed during the hurricane season and that the original programs were still available. However, as the funds were not being drawn down fast enough from a bond point of view, staff decided to become aggressive as to the issue of roofs. Thereafter, once trust had been established, inside repairs could be suggested. Ms. Sherrod noted that after the hurricanes, an executive order was issued permitting staff to make repairs and amend the State Housing Initiatives Partnership Program (SHIP) strategy to pay insurance deductibles for those who could not afford to pay. It was difficult for staff to give the money away. When Ms. Brooks approached staff, it was agreed that it would be beneficial to leverage the CRA and City monies as on many occasions, funds were exhausted before the rehabilitation efforts could be made. Ms. Heavilin inquired whether it would make sense to have a workshop in the community to let people know what is available to them, especially with hurricane season coming up. Chair Tillman advised that any time a person is deprived of an opportunity, whether it was from a banking or cultural standpoint, the growth of the community would be negated. Sometimes rules hamper development. He suggested that the board take a good look at the manner in which issues are addressed. When cases are pending, action must be taken and cultural issues set aside. There are times when rules must be dispensed with and every effort should be made to resolve the problems. Chair Tillman concurred with Ms. Heavilin that a workshop might be in order for the benefit of the board as well as for the community. Ms. Heavilin inquired whether the original Improvement Grant Program was to be part of the Heart of Boynton Work Program and whether the re-roofing process was limited to the Heart of Boynton. 13 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 Ms. Brooks replied in the affirmative, adding that staff wanted the board to be aware of some of the difficulties encountered and how staff would ameliorate those difficulties and try to get the residents to understand that this was free money, without any encumbrances. Ms. Heavilin urged that the board provide this program throughout the CRA. There were areas outside the Heart of Boynton where roofs and other repairs were needed, and she did not believe the program should be confined to the Heart of Boynton. Ms. Brooks advised that the prior Residential Improvement Program did not allow for roof repair or replacement. She commented that staff would market the program and attempt to bring about community trust. Ms. Heavilin requested a consensus of the board as to expanding the program beyond the Heart of Boynton. Chair Tillman pointed out that the Residential Improvement Grant Program was in place currently and suggested that any discussion pertaining to an expansion be addressed at another time. He requested that staff place this item on a future agenda. Rev. Chaney commented St. John Missionary Baptist Church in the Heart of Boynton had several thousand members and would be a wonderful place to hold a workshop in order to disseminate information. Ms. Brooks advised that no action was need for this item. IX. Old Business: A. Approval of City/CRA lLA for the Avenue of the Arts (Removed by Ms. Bright) B. Approval of EDAW Contract Ms. Brooks advised this item pertained to a contract between EDAW Inc., the firm that was selected to work with the CRA on the Downtown Master Plan. The contract was prepared by the CRA Attorney and approved by EDAW Inc. in form. The fiscal impact would be $180,000 plus related expenses. Staff recommended approving the contract between the CRA and EDAW Inc. for the development of the Downtown Master Plan. Motion Ms. Horenburger advised she would make a motion to approve; however, as previously pointed out, she would like for all agreements to be signed off by the CRA Attorney as to legal sufficiency before the agreements are presented to the board. This would prevent the board from being left open to the possibility of problems relating to the agreements. Ms. Heavilin seconded the motion for discussion purposes. 14 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 Chair Tillman inquired as to the additional expenses related to the $180,000. Ms. Bright advised that the additional costs included travel, copying, and Federal Express, which would be paid by the CRA, and were estimated to be approximately $20,000. This would increase the fiscal impact to $200,000. Rev. Chaney commented he made the assumption that once the CRA Attorney signed the contract, he had already read the contract and was in agreement with the recommendations. Ms. Horenburger opined that in the event a director signed off on the contract and it was amended, this could present a problem for the board. She contended that it was common practice to have the CRA Attorney sign off on contracts. Ms. Heavilin asserted that was all the more reason the CRA Attorney should not sign off on the contract. CRA Attorney Spillias commented he believed what Ms. Horenburger was saying, was when the contract was in final form, the CRA Attorney would sign off on it and the board would be assured that the contract presented was indeed what the CRA Attorney reviewed. Chair Tillman requested that CRA Attorney Spillias bring something back to the board for consideration. Chair Tillman called the question on the motion. Vote There was a vote on the motion that passed unanimously. C. Approval of Recommended Professional Services Providers per RFQ Ms. Brooks advised that the board approved the issuance of Requests for Qualifications for Professional Services (RFQ) for architectural engineering and marine engineering. Staff received 14 responses from qualified firms, and the selection committee narrowed it down to three recommendations. The firms were ranked on a scoring system similar to the scoring system utilized for the firms that responded to the RFQ for general contractors. Staff recommended Kimley-Horne and Associates, Inc., MSCW, Inc. and REG, and requested authorization to enter into continuing contracts with the aforesaid firms for the provision of ongoing services for the various CRA projects including the rehabilitation and expansion of the 211 East Ocean Boulevard Building and Streetscape Design for Sea crest Boulevard. These three firms would be rotated as projects arose. Motion 15 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 Ms. Horenburger moved for approval of staff's recommendation. Ms. Heavilin seconded the motion that passed unanimously. D. Approval of PBC Development Regions Grant Agreement for Village Homemade Ice Cream Ms. Brooks advised the board had previously approved a match to the Palm Beach County Regions Grant Program for this business, which was in the Village Marina. The County required municipalities and/or CRAs to enter into this agreement in order for the County to provide their share of the money, which is $50,000. The agreement would require the CRA to create jobs; however, the CRA would then subrogate its liability to create those jobs to the business pursuant to an agreement with the business. The business would have a mortgage or lien placed against its property until it met the requirements of the agreement. Ms. Horenburger inquired whether the business owned the property. Ms. Brooks replied in the affirmative. Motion Ms. Horenburger moved for approval. Rev. Chaney seconded the motion that passed unanimously. E. Presentation of Treasure Coast Regional Planning Council Market Update Ms. Bright explained the board directed staff to contract Treasure Coast Regional Planning Council to do a market analysis update and subsequent financial feasibility for the CRA district and specifically the MLK corridor. She announced that Tom LaVash from ERA and Kim Delaney from Treasure Coast would present the market findings tonight and next month the financial feasibility would be addressed. Ms. Delaney provided a brief overview of in-depth work Treasure Coast had undertaken with ERA over the past six weeks. The preliminary findings of the market study would be the first of a multi-step process. With the findings of the market study, Mr. LaVash's firm would produce the financial feasibility study which would determine the supportable development program for the Heart of Boynton, Seacrest Village area of Martin Luther King Jr. (MLK) Boulevard. This would be blended with a planning analysis that would take place in June 2007. At that time, the board would be presented with a view of what would be financially feasible for that property on MLK Boulevard, and a view as to how it could physically fit in a way that would make sense in the neighborhood. Mr. LaVash, principal and partner with ERA (Economics Research Associates), Washington, D.C. office, covered what ERA was charged with on behalf of the Treasure Coast Regional Planning Council. In terms of the scope of work, they would determine what was driving the economy of the City of Boynton Beach and Palm Beach County such as population, household and employment growth. In conjunction with that, they would explore market conditions. The 16 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 challenge would be to identify when the down cycle was over and to determine when the next "hot" opportunity would be. All of the market data would be utilized to outline a set of programs and various scenarios. The next step would be to test the financial feasibility. Market demand would be part of the equation. Financial feasibility would be critical to the role the City and CRA would play in helping to push this project along. Mr. LaVash provided a PowerPoint presentation, beginning with the demographics for Palm Beach County and the City of Boynton Beach. In 2007, there were 1.2 million residents with 515,000 households, and by 2012, forecasts indicate an increase to 101,000 new residents in 36,000 new households. The average household incomes were expected to increase from $87,000 the to $108,000 over the next five years, with an increasingly diverse population. Boynton Beach held its pace with the County in terms of its proportion at 6.5%. It was anticipated that there would be 8,000 new residents in 3,000 households over the next seven years. The pace of growth was expected to increase by 2021 to 6,300 new residents in 2,400 households. By 2020, the population would continue to grow with 17,300 new residents in 6,600 households. The average household incomes of $64,000 were expected to rise to $76,000 over the next five years. The strongest growth is expected among peak earners such as empty nesters. Employment statistics in the County indicate 53,200 new jobs over the next seven years and by 2020, forecasts indicate there would be approximately 114,000 new jobs, with the strongest sectors being in services and finance, insurance and real estate (FIRE). Boynton Beach provided 33,000 jobs with the majority in the retail sector. The City's share is expected to increase by 2020 to 10,200 new jobs. Housing statistics in Boynton Beach revealed the City issued 675 permits each year, with a 50% split between multi-family and single-family dwellings. The County issued 11,600 permits, 67% of which were for single-family dwellings. Market dynamics for the City indicated a loss of rental units to conversions, declining vacancies and price escalations. The median price of single-family dwellings was $350,000 Citywide and $222,500 in the CRA district. Rents increased by 58% since 2000. New residential development was either underway or proposed along AlA in Boynton Beach and Delray Beach. The market had slowed substantially, producing excess inventory, conversions to rental and project cancellations. Delayed market recovery could further increase inventory. Approximately 20 residential projects on Federal Highway were profiled, nine or ten of which were believed to be most comparable or competitive. The Sea crest Village site did not have as many of those marketable premiums as other projects. Pricing was generally $290,000-$500,000 per unit for condominiums and $220,000-330,000 per unit for the townhouse project along Federal Highway. Slowdowns were reflected in the absorption on the order of two to seven units per month, which suggested it became increasingly difficult to finance a project. This index would be considered in their financial model. Renaissance Commons was selling approximately two units per month. There were approximately 74 square feet of retail per person in Boynton Beach, while the national average was 26 square feet. This would reflect the City's role as a dominant retail destination in the region. West Boynton Beach 17 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 was leasing about 790 square feet of retail space a year. Of all retail inventory in Boynton Beach, the average rent was about $17.00 per square foot. New retail development, such as Starbucks at Boynton Beach Boulevard and Congress Avenue, was renting for approximately $31.00 per square foot, which met threshold feasibility. Retail opportunities at the Seacrest Village site would determine how much a developer could expect for retail space. Within a mile of the Sea crest Village site there was untapped retail demand. There was approximately $5M spent by those households that is leaking out elsewhere, suggesting an opportunity to capture some of that retail leakage for development. With regard to the office market, in Boynton Beach, the lowest vacancy rates were in the worst office buildings. Nationally, the opposite was indicated. Class "A" properties were most favored and most expensive. The lowest vacancies were in the Class "c" stock. The City was absorbing approximately 6,000 square feet per year, leasing on average of one or two office buildings a year, oriented to professional services. The 10,000 new jobs forecasted for the City would bode well for office demand. Three scenarios across a range of housing types, including condominiums, rental apartments, townhouses and 30% workforce housing, were illustrated. The variables between the scenarios were significant in terms of the ability to penetrate the market, marketability factors, and the issue of the market bounding back with the variables. The other issue was the number of workforce housing units, the demand for which was significant. The scenarios would be tested in their next task. Market potential was reviewed for retail development for the year 2012. In primary markets, each resident supported three to seven square feet of space while each employee supported two to five square feet. Growth in office and residential space generated new retail demands. Partial-year residency affected resident-based demand. Significant constraints for the Heart of Boynton limited market potentials. The market analysis suggested there was an opportunity for a second-tier grocery store which would be critical in supporting neighborhood retail programs. Limited supporting convenience/service tenants would follow. The majority of new office development in Boynton Beach was expected in superior locations, such as downtown and West Boynton. The Heart of Boynton is a tertiary office location. There was a limited market for "rooftop-serving" professional office tenants. The public sector could induce the market. The next steps would be the financial feasibility study in May and June 2007. The planning evaluation/testing would integrate a market and financial feasibility study, and would evaluate the physical development program on site. The work-in-progress presentation is slated for June 12, 2007. The final report would be available sometime in July 2007. ChairTillman called for board comments. Ms. Horenburger commented that she received an issue of Multi-Family Trends/Urban Land Institute which included an article entitled "Revitalizing the Heart of Boynton." The article asserted that Intown Development Group, a development firm based in Delray Beach, was 18 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 selected by Boynton Beach in a Request for Proposals (RFQ) process as the Master Developer for the $580M project. The article was contributed by Samantha Simons and Barbara Rudd, as principals of Sea crest Village Master Plan. As they were not the City's Master Developers at this time, she believed it was wrong to disseminate this information. She requested that the board concur to have staff assist with the Chair to develop a response and send it to Urban Land Institute under the Chair's signature as this was not a timely article. A copy should be sent to the local Urban Land Institute to the attention of Carla Coleman, Director. Chair Tillman concurred that was totally inappropriate and, further, it went forward without any contact with the CRA whatsoever. He agreed that the board should respond in an appropriate fashion. Rev. Chaney inquired of the presenters as to feasibility of single-family dwellings in the Heart of Boynton project and/or Martin Luther King corridor of Sea crest, as it appeared from their study there were very few single-family dwellings produced within the City. Mr. LaVash replied it would suggest that a low-density project such as a single-family detached housing development would not be feasible. Rev. Chaney inquired whether there was a trend in the County to move away from single-family dwellings. Mr. LaVash responded that it would depend on the price of land and location. As approximately 67% of the permits were issued by the County for single-family detached dwellings, there was still significant low-density residential development in outlying parts of the County. Chair Tillman thanked Ms. Delaney and Mr. LaVash for their presentation. X. New Business A. Consideration to Purchase 127 NE 4th Avenue (Bailey) for Townhouse Project Mike Simon, CRA Development Manager, provided background on the project. The board approved the purchase of the Robinson and Russo properties located on NE 5th Avenue In January and March 2007. These properties combined would provide the CRA with a large area for future workforce housing development in partnership with the Boynton Beach Faith-Based Community Development Corporation (FBCDC), which at this time was under contract to purchase adjacent land to the already-existing CRA-owned properties. The addition of the Bailey acquisition would provide five more units to the overall project. The CRA owned the parcel on 5th Avenue and the Robinson property. Mr. Simon provided an explanation as to the properties set forth on the drawings and proposed site plans. He advised that the Bailey property would be a good acquisition along with the adjacent properties and staff was optimistic that an agreement could be reached with the other parties in the near future. Staff recommended approval of the purchase agreement between the CRA and Sandra Bailey for $200,000 for the purchase of 127 NE 4th Avenue. 19 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 Motion Ms. Horenburger moved for approval. Ms. Heavilin seconded the motion that passed unanimously. CRA Attorney Spillias noted the last page of the contract, the signature page, contained the legal sufficiency certification requested by Ms. Horenburger. XI. Comments by Staff Susan Harris, Finance Assistant, Human Resources Administrator, advised of recent discussions at the board level regarding the recruitment process in order to ensure the largest applicant pool possible for any position within the CRA. Subsequently, Ms. Harris and City staff implemented the City's own recruitment processes at the CRA. More than 150 resumes and applications were received for the Administrative Services Manager position. Of those 150, seven candidates were interviewed, and on the basis of those interviews, Ashley Buckley was hired as the new Administrative Services Manager. Ms. Buckley previously worked with a 21- member board with the Heritage Conservancy in Pennsylvania. XII. Comments by Executive Director Ms. Bright commented she received a telephone call from Stormet Norem apologizing for not being able to attend the meeting. His wife unexpectedly lost her 42-year old brother as a result of a heart attack, and his wife's mother was having emergency surgery tonight on her appendix. Staff recently had discussions to go forward with the purchase agreement with the Women's Club. Discussions were had at the City Commission level to ensure staff was reviewing the operations and maintenance of the Club. Staff also met with the Club's attorney. The Women's Club approached staff, and staff agreed to the general terms of $1.6M for a purchase price of a property valued at $2.4M. In exchange, they would like to use the facilities which could be incorporated into a purchase agreement. Staff also evaluated the Club's past three years of operating expenses, which average about $65,000. Last year they were $7,000 in the red. One of the reasons Ms. Bright made these remarks under "Executive Director Comments" was the Club's board did not approve of the agreement. Therefore, at this time, staff wished to entertain a Letter of Intent to their board. If their board approved it on Thursday prior to summer recess, staff could negotiate a purchase agreement through CRA counsel. Ms. Bright advised that staff brought this issue forward for discussion when they were retracting from monies from the direct incentive funding agreement, and the opportunity arose. She inquired whether the board had any interest in pursuing this issue. The $1.6M purchase price would go to the Women's Club for their fund raising efforts in the community. Ms. Horenburger believed rather than the board spending more than $1.5M, consideration might be given to a purchase option contract with a right of first refusal in exchange for paying 20 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 the Club's operating expenses each year. She would like for the board to explore that option as well as an actual purchase. Rev. Chaney inquired as to what the board would do with the building. He opined that what the Women's Club did with their funding was their business. He was more concerned with staying out of the red and the board's plans with respect thereto. Ms. Bright advised that the building was an Addison Mizner structure which had already received historic designation. Boynton Beach did not have many historic buildings and the purchase would be something CRAs typically did. In terms of general discussions, staff considered creating a 501C3 for cultural programming. Staff did not hJ'JC had a funding source and was therefore seeking board direction. Chair Tillman suggested that the board explore the option of a lease buy-out and, over the long term, satisfy the actual value while providing cultural programs to demonstrate usability of the building. The lease buy-out would provide an opportunity for the board to take over the operation and institute programs and activities that would benefit the community. Ms. Horenburger believed it would be a mistake to purchase the building outright with the unresolved tax situation. Rev. Chaney indicated he had no objection to purchasing the building; however he would like other options explored. Ms. Heavilin concurred that she would have no objection to purchasing the building; however, she questioned the Club's ability to fund operational costs and remodeling and preservation issues. The board agreed this issue could be further addressed after the summer in order to explore other options. Chair Tillman concluded it must be determined whether the building was sound in terms of its structural integrity, whether anything was owed on it, whether it was deliverable in its present condition and whether there would be any financial impact to the board in terms of a lease buyout. Ms. Bright apologized for bringing the following item at the last minute. She indicated an International Youth Summit sponsored by the Guiding Light Church and supported by a group of bishops and ministers across America would be held in Birmingham, Alabama this summer. The purpose of the summit was for local youth to revisit the Martin Luther King dream. Youths from Delray Beach, Boynton Beach, West Palm Beach, Vero Beach and Belle Glade would be participating. She inquired whether it was the will of the board to make a donation. Mr. Bright advised the overcall costs for the summit was $15,000 Chair Tillman suggested the sum of $3,000 be donated. 21 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 Motion Ms. Horenburger moved for approval of a $3,000 donation for the International Youth Summit. Mr. Sims seconded the motion and inquired whether $3,000 would be above and beyond what had already been donated for this trip. Ms. Heavilin inquired as to how many of the youths would be participating from Boynton Beach. CRA Attorney Spillias pointed out for the record, as any expenditure of CRA funds would have to be for a public purpose that involved people or things within the boundaries of the CRA, clarification was required to determine that some of the youth benefiting from this event were from within the CRA boundaries. Pursuant to the request of Chair Tilllman, Ms. Horenburger added the aforesaid caveat to her motion. Ms. Bright advised that she would obtain clarification that the youth participating were from within CRA boundaries and report back to the board. Vote There was a vote on the motion that passed unanimously. Lastly, Ms. Bright advised she would like to begin planning a public meeting for the residents of the MLK corridor in order to disseminate as much information as possible with regard to the land purchase. She would like to schedule the meeting in the third or fourth week of July if acceptable to the board. The board was agreeable to Ms. Bright's suggestion. XIII. Comments by CRA Board Attorney CRA Attorney Spillias provided an update on the Ocean Breeze purchase closing. As he reported to the board last month, there was a marketability issue under the contract having to do with Boynton Associates, the property owner. He was advised that Mr. Puder and Mr. Finkelstein resolved the issue in a manner that allowed for a release of the recorded document and permit a closing. However, documentation to that effect had not yet been received. Mr. Finkelstein would have until May 15, 2007 to cure the marketability issue. Mr. Reardon indicated if it was accomplished by May 15,2007, it would take another week for the funds to be transferred and a closing would probably occur a week after that. If the marketability issue was not cured by May 15, 2007, the board would have the authority to either grant a further extension or allow the contract to lapse. He requested direction as to the manner in which to proceed in the event the documentation is not received by May 15, 2007, 22 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 Ms. Horenburger suggested that a special meeting be held. If the board continued to grant extensions, the parties would continue to negotiate with each other. CRA Attorney Spillias advised the current extension was not granted by the board. It was permitted under the contract, which expires on May 15, 2007. It could be suggested to the parties that if the documentation was not received by Monday, May 14, 2007, the board could call a special meeting on 24 hours' notice and meet on May 15, 2007. XIV. Comments by CRA Board Ms. Horenburger commented she was in a meeting recently with an official from another city and was asked if she knew where Five Towns College was going to be located. She replied she did not know. The official advised the College was going to be located in the City of Lake Worth. Ms. Horenburger subsequently mentioned this to CRA Executive Director Bright. Ms. Horenburger understood officials were involved in representing Boynton Beach in its Requests for Proposals (RFP) for development. Ms. Horenburger attempted to contact the official, while Ms. Bright contacted Dr. Cohen. Dr. Cohen indicated the arrangement had not been completed. Ms. Horenburger believed the CRA should approach Five Towns College to determine what it would take to bring them back to Boynton Beach. She believed the site they were exploring did not provide sufficient parking and was a lot smaller in square footage than Boynton Beach High School. She urged this be explored by the City's legal staff and CRA Executive Director, and for renegotiation efforts to be made with Five Towns College. Chair Tillman believed a Letter of Understanding from the board to Five Towns College was in order, and that the board should receive a direct response from the consultant as to the timeline and how this issue came about. Rev. Chaney expressed his appreciation that the CRA Executive Director was working with the Youth Violence Initiative. The board had discussed a youth summit and he believed the board should move forward with action. Additionally, he expressed his gratitude to the board for committing the dollars to the youth participating in the Alabama summit. He believed, however, that prior to donations made by the board, formal presentations by youth organizations were needed in order to provide clearer information and to ensure proper supervision. Ms. Heavilin wished to follow up on Ms. Horenburger's comments and believed every effort should be made to get Five Towns College back to Boynton Beach. Secondly, she was approached by several people requesting something be done with regard to the deplorable conditions on Federal Highway. Signs were down, as were utility poles, from the last hurricane. She was advised that Code Compliance was not doing anything, although this was not verified. Ms. Bright advised that she would take care of the situation. Chair Tillman asserted with respect to issues of liability, the board previously discussed developing a policy next year in terms of outreach. He suggested this be explored. 23 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 XV. Adjournment No further discussion having come before the board, the meeting properly adjourned at 9:25 p.m. ~o~ Recording Secretary 24