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Minutes 06-09-01MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY WORKSHOP HELD IN CONFERENCE ROOM C, WEST WING, CITY HALL, BOYNTON BEACH, FLORIDA, ON SATURDAY, JUNE 9, 2001 AT 9:00 A.M. Present Larry Finkelstein, Chairman Jeanne Heavilin, Vice Chair Jos6 Aguila Alexander DeMarco Don Fenton Michelle Hoyland Quintus Greene, Director of Development/CRA Absent Henderson Tillman I. Call to Order Chairman Finkelstein called the meeting to order at 9:10 a.m. A quorum was present. In addition to the agenda prepared by Mr. Greene's staff, Mr. Finkelstein also · ; prepared a list of items for rewew, which was distributed to the members. II. Workshop: CRA Incentives Chairman Finkelstein distributed copies of the following: pamphlet that had been previously prepared for the CRA; Delray Beach's CRA incentives; draft of development incentives for the City of Boynton Beach; article about a supermarket in the City of Riviera Beach; and various newspaper articles regarding the downtowns of other municipalities· Chairman Finkelstein inquired if there was a current pamphlet available on the CRA that could be used as a handout? Mr. Greene responded that they have not developed a CRA brochure to date. However, as the result of a recent request by an individual who was interested in developing in Boynton Beach, staff put together a booklet, which Mr. Greene presented to members to look at. It was recognized that there is a need for such a brochure. Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida June 9, 2001 Mr. Greene said that the Development Department's web page also needs to be updated. Chairman Finkelstein would like a link from this page to a separate page on the CRA. Members were asked to refer to their agenda packet for the regular Tuesday meeting, which included the incentive ordinance for the CRA. Mr. Greene noted that there are two ordinances, one for the CRA and a separate one for Quantum Park. The City Manager would like to update these ordinances. Mr. Greene pointed out that the ordinances allow the Commission to pay certain fees that a developer would otherwise pay, such as capital facilities charges and building permit fees. Also included in the package is a draft of a fee-in-lieu-of parking ordinance. This ordinance states that for the first six months there is no fee. After that the fee is $1,000 the first year and goes up to $7,000 over seven years. Chairman Finkelstein requested this item be deferred until later in the meeting. Mr. Greene also reported that staff is working on a contract with Michele Mellgren to modify the zoning regulations to conform to the recommendations of the Federal Highway Corridor Plan. Mr. Greene also reported that $700,000 has been set aside by the Commission to pay for these kinds of incentives. Discussion is taking place among staff on whether the building permit fees should be deferred, rather than abated. However, since every situation is different, each one must be looked at on an individual basis. Chairman Finkelstein said that from the incentives contained in the current ordinance, this information could be included in a brochure. He would like to come up with a basic CRA brochure so that people are aware that there are incentives available. Ms. Hoyland questioned if an incentives brochure should be prepared separate from a CRA brochure. Members discussed how they would like to see the brochure set up and Ms. Hoyland said she would like to see demographics included, as well as maps. Mr. Greene noted that the Development Department would like to prepare an annual report that would include the CRA. Chairman Finkelstein thought this was a good idea, but he would still like to have the CRA have its own specific handout. Ms. Hoyland suggested that area businesses could help sponsor the brochure similar to what the Chamber does. It is not necessary that the incentives be specific, but only mentioned that incentives are available. Chairman Finkelstein also noted that the CRA could have the brochure prepared by a printing company. Chairman Finkelstein summarized what the CRA pamphlet should include: 2 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida June 9, 2001 2. 3. 4. demographics; boundary map; overview of the available incentives; and who and what the CRA is about. Ms. DeMarco distributed an outline that he had prepared regarding the CRA. Chairman Finkelstein inquired when a brochure could be prepared and Mr. Greene stated that he was not certain because staff is working on many assignments and would not have the time to do a brochure in the immediate future. Chairman Finkelstein noted that the CRA has no staff of its own and Mr. Greene said that this is another issue that needs to be discussed. Mr. Aguila volunteered his time and staff to develop a CRA brochure, which he will bring back to the Board for review and approval. After the Board has finalized the brochure, a printer could be hired. Chairman Finkelstein noted that the City and the Chamber of Commerce are preparing a CD on the City. Vice Chair Heavilin reported that the CD is almost ready. Anyone who has information they would like to include in the CRA brochure should send it to Mr. Greene who will send it on to Mr. Aguila. Mr. Greene requested that any information furnished to him should be put on a floppy disk or e-mailed to him at the City. Mr. Aguila said he would try to have a draft ready by the end of this month for the Board to review at its July 10th meeting. Mr. Aguila inquired if there was enough money for the CRA to print the brochure and Chairman Finkelstein did not feel that this would require a great deal of money. Ms. Hoyland suggested that they could look for sponsors, but most members were not favor of any kind of sponsorship and felt that the CRA should pay for its own printing. Incentive Ordinance Mr. Greene stated that he furnished the ordinance for informational purposes to let the Board know that there are incentives available. Mr. Greene felt the ordinance was a good ordinance and that City Manager Bressner would like to update it. Members agreed that they would discuss this at the Tuesday night meeting. Mr. Aguila inquired if the ordinance was lacking in anything. Mr. Greene said that the ordinance contained a great many incentives that could be offered to desirable businesses. Members discussed the types of businesses that could be 3 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida June 9, 2001 offered incentives, as well as offering incentives to businesses that they would like to see relocated. Mr. Greene said that the City has never developed a real consensus as to what it wants to be. Mr. Greene stated that you must look at the character of the City and that Boynton Beach has historically been blue collar and its policies have been dominated by working-class retirees, which have shaped the City's character. In order to change the values of the City, it will be necessary to have an infusion of younger, wealthier and more contemporary residents, which can be accomplished by promoting up-scale, residential development and apartments. Chairman Finkelstein noted that this is beginning to change. The age of the population is beginning to drop and the household income is beginning to grow. Mr. Greene stated this is attributable to the new apartments going up in the City. Mr. Greene said that people have spoken at Commission meetings saying they do not want to see any more apartments in Boynton Beach. He pointed out that apartments are taxed as commercial developments and there is no $25,000 homestead exemption, which means that apartments are winners for everyone. Ms. Hoyland raised the following points: · The City needs newer landscape requirements. · Why is everybody going out west? · How do we draw the people east? · Do the downtown businesses feel that the CRA is trying to draw people downtown? Mr. Greene pointed out that businesses follow people and that is why it is v. ery important that a residential base be built downtown. Every successful downtown has a residential base. He further pointed out that the downtown businesses today may not be there tomorrow because as the population changes, there will be a demand for different types of businesses and services. Chairman Finkelstein pointed out that there are four new residential projects going up, plus the marina that will also have apartments. Ms. Hoyland would like to see the Board concentrate more on the downtown area, which is the core area. Chairman Finkelstein stated that this is the intention of the CRA. Mr. Greene reported that they plan to initiate an aggressive land acquisition program in Area 3 and in order to do that, money is needed. Mr. Greene said that he included in the agenda packet information from the Bank of America regarding borrowing funds under four different scenarios and he will be making a 4 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida June 9, 2001 recommendation to move forward. Once the Board decides how it wants to proceed, he will go to the Bank to secure the loan, which will be guaranteed by the City. Once the funds are in place, the CRA can initiate a property acquisition program in the downtown. Mr. Greene would like to ensure that the CRA would have an ongoing income stream, separate from the TIF revenues. Mr. Aguila acknowledged that there are landscaping deficiencies in the City and once the CRA starts addressing them, it will extend citywide. Chairman Finkelstein stated that the Landscaping Code was recently reviSed, but he would like to see explicit guidelines in specific core areas. Mr. DeMarco said that the FEC representatives informed him that they want to talk to the City about landscaping. Mr. DeMarco also received a call from the USDA who would like to come to talk to the City to make federal funds available for landscaping. Ms. Hoyland would like to see the design guidelines raised to a higher standard in the CRA area. Members agreed that there should be design requirements in the downtown area. Ms. Hoyland reported that when she visited the new pond this weekend, there were homeless people sleeping on the benches. Mr. Greene stated that in order to prevent this, it is necessary to put in center armrests. Mr. Fenton said that the Police Department should be informed of this situation. Contract with Michele Mellgren Mr. Greene reported that there is a draft contract to hire Ms. Mellgren, and a funding source needs to be identified. The cost of the contract is $9,990. Mr. Greene said that the Board needs to identify a line item in order to pay Ms. Mellgren. Chairman Finkelstein asked what services Ms. Mellgren would be performing. Mr. Greene stated that she would be implementing the changes to the zoning ordinance to effect the recommendations in the Federal Highway Corridor Plan. Mr. Fenton inquired who would have final approval on the changes and Mr. Greene stated that the Commission would have final approval. The recommendations would first come to the Board for review before going to the Commission. Mr. Fenton inquired why the Commission should not pay for the contract. Chairman Finkelstein replied that the changes are for the redevelopment of the CRA and would affect the CRA. Mr. Greene pointed out that as soon as a line item is identified by the CRA, Ms. Mellgren could begin work. 5 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida June 9, 2001 Going back to spreading information about the CRA to residents, Vice Chair Heavilin inquired if the CRA could include some information in the City's water bill. Mr. Greene said he would speak with Dale Sugerman about this. Chairman Finkelstein also suggested having a column devoted to the CRA in the City's newsletter. Mr. Greene suggested contacting Wayne Segal on this. Mr. Greene reported that based upon the revised property assessment of the City, the CRA in fiscal year 2001-2002 would bring in approximately $800,000, which is up $305,000 from the current fiscal year. Members discussed the role of the CRA over the CRA budget. Members also discussed their concerns about approving items without having some knowledge of how the money is being spent. They requested that the Board be advised where the money is going before it is appropriated. Members also felt at some point they will need a staff member to keep track of the CRA funds. Mr. Greene acknowledged that in order for the CRA to be a true independent CRA, it will need its own staff. Ms. Hoyland suggested that the CRA and the Commission each pay one-half of the Mellgren contract. Mr. Greene read from a portion of the Mellgren contract, which in effect stated that the consultant would be addressing regulations for the CBD, as well as the other areas along the Federal Highway Corridor to be completed within 60 days. After reviewing the areas covered in the contract, Mr. Aguila inquired why areas 1 and 5 were not mentioned. Mr. Greene replied that those areas are ancillary areas, which are mostly single family areas along the Intracoastal. Chairman Finkelstein would like to have these two areas mentioned in the contract as well. He does not have a problem with the Board paying for the contract. It was suggested that since the contract has been signed, that an amendment to the contract could be prepared to include those two areas. Mr. Fenton suggested the item be added to Tuesday night's agenda for approval. Ms. Hoyland pointed out that by updating the code for the Federal Highway Corridor this would also include updating the City's code; therefore, she felt that each party should pay one-half of the contract. Mr. Greene pointed out that the CRA's income would be more than doubling and that the funds are there for the CRA to pay for the entire contract. Further, most of the new regulations pertain to the downtown area. Chairman Finkelstein requested that Mr. Greene add this to Tuesday's agenda since it was agreed that the Board would approve all funds that are used from the CRA budget. Mr. Aguila suggested that a separate CRA set of Land Development Regulations be prepared. Members discussed this suggestion, but realized that this would still be part of the City's Land Development Regulations and didn't see a need for separate regulations. 6 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida June 9, 2001 Parking Chairman Finkelstein referred to the draft ordinance, which was included in their packet. Mr. Greene stated the ordinance would be on the Commission agenda on June 19th and is being provided to the Board for informational purposes. Chairman Finkelstein asked if the CRA has been made the City's Parking Authority. Mr. Greene replied that it has not and that would require a separate ordinance. Chairman Finkelstein noted that currently there is no parking policy. Mr. Greene acknowledged that there is no shortage of parking in the downtown, but there are people who feel that there is not enough parking space in the CBD. The draft ordinance provides that for the first six months, there will be no parking fee. This would apply to the CBD District and properties abutting Ocean Avenue between Federal Highway and Seacrest. Next year the fee would be $1,000 and it goes up $1,000 every year for seven years to a maximum of $7,000. This incentive will be in addition to the 50% reduction in parking spaces and the shared parking requirements. Members discussed whether the fee was high enough. In other cities the fee is anywhere from $8,000 to $14,000 per parking space. Mr. Aguila pointed out that you have to take into mind the local market. Chairman Finkelstein noted that the incentives available with regard to parking are: 2. 3. 4. 50% reduction; shared parking agreements; fee-in-lieu-of is being created; property is being purchased and leased to provide parking spaces; and parking spaces can be located within 1,000 feet of their business. Mr. Greene said that at the Tuesday meeting he would give an update on the parking issues within the CBD. At that time, the Board could present any other ideas or suggestions that they may have. Mr. Greene reported that the City has acquired a parcel of land from the FEC and entered into a lease agreement with the Congregational Church to make parking available. Members discussed whether the fee-in-lieu-of should cover only a percentage of the required parking or all of the required parking. Questions arose as to how the City could keep track of all these shared parking spaces. Mr. Greene felt it was unnecessary to get too complex on this issue. Mr. DeMarco suggested that parking meters could be used for additional income. Mr. Greene stated he had suggested installing parking meters, but the City did not wish to utilize parking meters. Mr. Greene did point out that a parking 7 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida June 9, 2001 structure could be built, which could support itself and also produce additional income. Mr. DeMarco asked Mr. Greene what his recommendation was and Mr. Greene said that the Board should move forward with the ordinance as presented. Mr. Fenton suggested that the property that has been recently purchased could be leased to a parking garage company and they could run it. Chairman Finkelstein stated that in order to promote downtown development it is important to provide parking. He informed Mr. Fenton that City ordinance does not permit any outside parking companies coming into the City. Mr. Aguila was of the opinion that there should be "zero" parking requirements. (Ms. Hoyland left the workshop at 12:15 p.m.) Chairman Finkelstein would like to see parking guidelines in place before a problem with parking arises. This would put the City ahead of other municipalities that are now trying to correct their parking shortages. Chairman Finkelstein requested that the Board members read the draft ordinance prior to Tuesday's meeting and bring suggestions with them. Mr. Aguila inquired if the Board was asked to comment on the ordinance and Mr. Greene said that he is charged with keeping the Board informed of issues pertinent to the CRA. Mr. Aguila informed the Board that he would be out of town for the next two meetings and if he has any comments on the draft ordinance, he will convey them to Mr. Greene. Land Acquisition Program Chairman Finkelstein asked if financing options would be brought before the Board on Tuesday night. His major concern is that there is always enough reserve and that all the TIF money is not spent. Mr. Greene said there are four loan options that have been presented by Bank of America. There are two 15-year options and two 10-year options. Another option being offered is fixed rate versus variable. The rates being offered are based on a taxable interest rate aS follows: > 15 year variable rate at 5.37% ;> 15 year fixed rate at 7.278% > 10 year variable rate at 5.27% > 10 yearfixed at 6.916%. 8 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida June 9, 2001 Chairman Finkelstein inquired what the vadable rate would be based upon and Mr. Greene was not certain. Mr. Fenton asked about "zero coupon bonds" that he had previously brought up. Mr. Greene stated that the City does not get involved with these bonds any more, according to Ms. Reese, the City's Finance Director. Mr. Fenton explained how "zero coupon bonds" work and how they could provide a great deal of money to the City. Chairman Finkelstein said he would like to speak with Ms. Reese about this. Chairman Finkelstein had suggested a revolving line of credit, because he does not want to pay interest on money that would not be used right away. Mr. Greene said this was still an option and that the Bank would be willing to set up a line of credit. Members felt the rates quoted by the Bank were quite high and that there were better rates available. Members would like the City to get quotes from two other banks. Chairman Finkelstein requested that Mr. Greene determine what the points and fees would be, as well as obtain additional quotes from two other banks and determine what the interest rates would be for a line of credit. Promenade Update Chairman Finkelstein reported that he met with Mr. Jarvis and his architect and they are moving forward. Riverwalk Chairman Finkelstein said he would like to hire a design professional and then put the project out for bid. Mr. Greene suggested that the Board follow the City's procedures. Mr. Greene stated the first thing that must be done is to identify people who do this kind of work (pre-qualification) and then prepare an RFP. Mr. Greene explained the process, the first step being to establish a budget. Mr. Aguila disagreed with this process and stated that the first thing that should be done is to come up with some kind of schematic design. Chairman Finkelstein would like to sit down with a design professional and work out some kind of design and then you would be able to determine how much the project would cost. He estimated this might cost between $1,500 to $2,000. Mr. Greene said that a design-build could be done. You would then have to go out for an RFP, but a budget would still have to be established first. Mr. Greene suggested that Chairman Finkelstein write a verbal description of what he envisions for the Riverwalk and he would incorporate this into the RFP. Chairman Finkelstein stated that he would like to include a conceptual drawing with his verbal description. Chairman Finkelstein presented members with 9 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida June 9, 2001 surveys and plans of the area that he had prepared previously. Members spent time reviewing and discussing the plans. Mr. Aguila raised the question that if the Board would be looking for design professionals, he would like to know if all design professionals would have an opportunity to bid on projects because his firm would like to have an opportunity to do so. Members discussed whether this would be permissible. Mr. Agui:la was aware that as a member of the Board he could not steer any work to any company with which he has an equity partnership, but he would like his firm to have this opportunity to do work within the CRA area in Boynton Beach. Mr. Greene said he would consult legal counsel with this question. Chairman Finkelstein also had some questions that he would like to refer to legal counsel regarding his involvement with projects within the CRA. (Mr. DeMarco left the meeting at 1:00 p.m.) Mr. Greene said that he would prepare and send out a RFP for design-build services to construct a Riverwalk. A project budget will be established. Mr. Aguila brought up the idea of doing the project in phases in order to keep the costs down because there are so many unknowns when requesting a design- build Project. Mr. Greene said that allowances are included for anything that is unknown. After further discussion, members agreed that it would be best to come up with a design, instead of verbally describing the project, before going out for an RFP. Mr. Aguila said that the City used to have contracts with three to five design professionals to handle these types of projects. Mr. Greene said he would check with Mr. John Wildner, Parks Director, to determine if this arrangement still exists. Chairman Finkelstein questioned if the City no longer had this arrangement with any firm,, how would they proceed? Mr. Aguila said that the City could always piggyback an open contract with another municipality. Members discussed the alternatives if this option were not available. (Mr. Fenton left the meeting at 1:20 p.m.) Vice Chair Heavilin inquired if the Board would have to approve this Tuesday night and Vice Chair Finkelstein noted that the project had already been approved by the Board. Summary Mr. Greene will speak with John Wildner regarding design professionals and will get back to Chairman Finkelstein. Vice Chair Heavilin will speak with Wayne Segal regarding a column in the City's news paper. 10 Meeting Minutes Community Redevelopment Agency Workshop Boynton Beach, Florida June 9,2001 Mr. Aguila will prepare a brochure to be brought back to the Board for review. Mr. Aguila requested that the CRA have its own web page on the City's web site. Vice Chair Heavilin will also speak with Mr. Segal on this issue. Boynton Beach Boulevard The roof on the gazebo at the new pond matches the blue roof on the Eckerds. Chairman Finkelstein asked whether the light poles on Boynton Beach Boulevard would also be blue? Mr. Greene was not certain. Chairman Finkelstein said it is important that design guidelines are put into effect so that another Eckerds doesn't occur on Boynton Beach Boulevard. Mr. Greene said it is very important that the type of fixture be a standard, and then the color. Mr. Greene noted that Boynton Beach Boulevard does not have to be like Ocean Avenue. Chairman Finkelstein asked if Ms. Mellgren would be bringing back her specific recommendations to the Board and Mr. Greene stated she would. Mr. Greene complimented the Board by stating that the CRA has accomplished a great deal in such a short period of time. ADJOURNMENT There being no further business to discuss, the workshop propedy adjourned at 1:45 p.m. Respectfully submitted, Barbara M. Madden Recording Secretary (four tapes) June 11,2001 at 3:30 p.m 11