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Minutes 09-11-07 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY MEETING HELD IN CITY COMMISSION CHAMBERS, BOYNTON BEACH, FLORIDA ON TUESDAY, SEPTEMBER 11, 2007, AT 6:30 P.M. Present: Jerry Taylor, Chair Jose Rodriguez, Vice Chair Carl McKoy Ron Weiland Lisa Bright, CRA Executive Director OJ. Doody, CRA Board Counsel Absent: Mack McCray I. Call to Order Chair Taylor called the meeting to order at 6:31 p.m. II. Pledge to the Flag and Invocation The board recited the Pledge of Allegiance to the Flag, followed by a moment of silence. The invocation was given by Rev. Charles Brannon, Gateway Community Church. III. National Anthem The National Anthem was sung by Lou Galterio. IV. Roll Call The Recording Secretary called the roll and declared a quorum was present. V. Agenda Approval A. Additions, Deletions, Corrections to the Agenda None. B. Adoption of Agenda Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 11, 2007 Motion Mr. Weiland moved to approve the agenda. Vice Chair Rodriguez seconded the motion that passed unanimously VI. Consent Agenda A. Approval of the Minutes - CRA Board Meeting - August 14, 2007 (This item was pulled by Mr. Weiland) B. Approval of the Period Ending August 31, 2007 Financial Report C. Approval of Amendment to the Waypointe Marine Inc. Management Agreement D. Approval of RFP/RFQ for Fuel Dock and Marina Management Services E. Approval of Funding up to $20,000 from the Residential Improvement Grant Program (Bond II 02-58300-474) to Robert and Catherine Shaw for the property located at 117 NW 4th Avenue F. Approval of Funding up to $20,000 from the Residential Improvement Grant Program (Bond II 02-58300-474) to Ester Jerry for the property located at 423 NW ih Avenue G. Approval of Funding up to $20,000 from the Residential Improvement Grant Program (Bond II 02-58300-474) to Sharon Darrisaw for the property located at 509 NW 11th Avenue Vice Chair Rodriguez recalled it had been agreed the applications for grant funding, with the blacked-out Social Security numbers, would be included in the packets. Vivian Brooks, Assistant Director, pointed out staff had attempted to black out the social security numbers. However, the information was still visible. For this reason, the applications were not included in the packets; however the applications were available for inspection in the CRA offices. Motion Mr. Weiland moved to approve the Consent Agenda as amended. Vice Chair Rodriguez seconded the motion that passed unanimously. 2 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 11,2007 VII. Public Comments: (Note: comments are limited to 3 minutes in duration) Chair Taylor opened the floor for public comments regarding non-agenda items. George Kallai, and daughter, Lisa Hargrove, 1464 Bexley Drive, Delray Beach, commented on what they believed were miscommunications pertaining to the submission of grant applications they filed to improve property at 310 South Federal Highway and 810 North Federal Highway, Boynton Beach. Mr. Kallai was advised by CRA staff that there was no record of the permits, although all the necessary paperwork had been filed. Chair Taylor requested staff look into this in an expeditious manner, and respond to Mr. Kallai and his daughter. Harvey Grasscott, 100 NE 6th Street, a new business owner, expressed concerns relating to the pOSSible cancellation of trolley service from Marina Village to the beach and back. He requested the board reconsider cancelling the route, as ridership could increase. The trolley could be used by businesses for advertising purposes and to draw people to the area. The board pointed out the use of that trolley service was minimal. It was decided to expand service to the beach for awhile on one of the remaining two trolleys; however, that would not have been cost effective. While the route from Marina Village to the beach would be discontinued, the trolley would still run through Marina Village, which was a major stopping pOint for the route. Lisa Bright, CRA Executive Director, advised staff performed a complete analysis and recommended the other trolley service be expanded, as the Marina Village stop was a major relay point. CRA staff was endeavoring to increase ridership and draw more people to the downtown area, which would benefit the businesses at Marina Village and Ocean Plaza. No one else having come forward, Chair Taylor closed the floor for public comments. VIII. Public Hearing: Old Business: None. 3 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 11,2007 New Business: A. SE 4th Avenue Abandonment 1. PROJECT: AGENT: OWNER: LOCATION: SE 4th Avenue (ABAN 07-004) Jeff Tomberg 4th Street LLC Between Railroad Avenue and SE 4th Street (adjacent to 416-417 SE 4th Avenue) Request for abandonment of the west one- half of SE 4th Avenue right-of-way located east of Railroad Avenue, approximately 20 feet wide by 122 feet long DESCRIPTION: Kathleen Zeitler, City Planner, informed the board the applicant was requesting to abandon a portion of the improved 20-foot right-of-way for SE 4th Avenue, the western half of the road, which was located between SE 4th Street and Railroad Avenue. The applicant submitted ownership and encumbrance reports and met all notice requirements to the public and utility providers. Previous requests for abandonment in the area had been approved. All utility providers, excluding BellSouth, indicated they had no objection to the abandonment. The Engineering Division and BellSouth required conditions of approval, which must be satisfied prior to future development of the applicant's property. The applicant had agreed to the conditions of approval, at the applicant's expense, which included relocation of the existing utilities, and the establishment of a 10-foot utility easement for BellSouth. Staff reviewed the request and recommended approval with the conditions. Jeff Tomberg, representing 4th Street LLC, advised the right-of-way to be abandoned currently served no purpose under the current plan for land assemblage. Fourth Street LLC owned the property on both sides of the right-of-way, and would be the only party to be affected. Applicant would meet the conditions set forth by staff. Chair Taylor opened the public hearing. Dennis Meadows, 419 SE 4th Street, commented he owned the lot in the back where the road would be abandoned. He was desirous of seeing a plan before the property was abandoned and expressed concern as to the manner in which the property would be used. 4 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 11, 2007 Chair Taylor explained the abandonment was merely being discussed at this point, and would be required to come back before the board for additional hearings and for approval. Board discussion ensued regarding the monetary value of the property, and whether deed restrictions were necessary. Ms. Zeitler replied she was not aware of any monetary value for which the City or CRA would be reimbursed if the right-of-way were to be abandoned. If the right-of-way were to be abandoned for private development, it would be listed on the tax rolls and the City would benefit from the tax value. Attorney Doody opined an abandonment process did not necessarily entail the conveyance of title. The process could be effectuated through the adoption of a resolution, which would represent the board's actions of abandonment. There would be no deed or instrument recorded, other than the resolution. Accordingly, no deed restrictions would be imposed on the property. Under Florida law, in terms of abandonment, if one were to take a line down the center of the property, the title would revert to the adjoining property owners. Mr. Tomberg pointed out the applicant owned the property surrounding the street, and the street had not been used for any purpose. BellSouth was the only known utility, and the applicant was wel/ aware of Bel/South's requirements. As to the proposed project, the applicant had been in discussions with CRA staff regarding zoning and land use requirements. Attorney Doody indicated the right-of-way was in favor of the City and not the CRA. As such, any action taken by this board would serve as a recommendation to the City. It was his understanding the City would address this item at a later date. Mr. Tomburg advised the property in question was vacant land. The north side of the property was torn down approximately six years ago and on the south side, the existing structure was recently burned down as part of a demonstration by the Boynton Beach Fire Department. He contended the property was in the process of being cleared of debris. Motion Mr. Weiland moved to approve abandoning the rights-of-way, with the condition that the property would be cleaned up within three months. Mr. Tomberg agreed, on behalf of the applicant, to the conditions imposed 5 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 11, 2007 Vote Vice Chair Rodriguez seconded the motion that passed unanimously. B. Railroad Avenue Abandonment 1. PROJECT: AGENT: OWNER: LOCATION: DESCRIPTION: Railroad Avenue (ABAN 07-005) Jeff Tomberg 4TH Street LLC East of the F.E.C. Railroad between SE 2nd Avenue and SE 2nd Avenue and SE 4th Avenue (adjacent to 399-417 SE 4th Street) Request for abandonment of a portion of Railroad Avenue right-of-way approximately 30 feet wide by 484 feet long Ms. Zeitler advised the applicant, 4th Street LLC, requested the abandonment of a 30 foot right-of-way on Railroad Avenue. The property was unimproved, was 30 feet wide by 483 feet long, and was located adjacent to the FEC Railroad. Applicant had submitted a copy of the title opinion, met all the requirements, received comments from City staff and public utility companies. Excluding BellSouth and the Engineering Division, all public utility providers had indicated they had no objection to the applicant's request. Both the Engineering Division and BellSouth required conditions of approval, and applicant would ensure the conditions of approval were satisfied prior to any future development of the property. Mr. Tomberg advised, if the property were to be abandoned, half would go to 4th Street LLC and the other half to the FEC Railroad. Applicant contacted both parties and provided notice of the hearing. He contended the City previously abandoned two parcels to the south of the property in question. Chair Taylor opened the floor for public hearing. Cheryl Meadows, 419 SE 4th Street, expressed dissatisfaction with the condition of the easement, which was littered with empty beer cans and trash, and also noted concerns as to the manner in which the property would be utilized. Board discussion ensued as to responsibility for cleaning up the right-Of-way. 6 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 11, 2007 Jeff Tomberg, agent for 4th Street LLC, indicated the trash referred to by Ms. Meadows, was located in the abandoned area. He pOinted out, upon abandonment of the right-of-way, the property would become the responsibility of the applicant, and the applicant would work with Code to ensure all problems were remedied. The board requested staff endeavor to clear the property. Motion Mr. Weiland moved to approve Item B, under New Business. Vice Chair Rodriguez seconded the motion that passed unanimously. IX. Pulled Consent Agenda Items A. Approval of the Minutes - eRA Board Meeting - August 14, 2007 Mr. Weiland requested clarification as to the status of Rufus Ribs, and whether they could utilize the existing location as well as a second location. Chair Taylor explained Rufus Ribs would be permitted to do so, provided they could comply with the stipulations set forth in the new regulations for mobile vendors. There was some question as to whether two units would fit on their property. Rufus Ribs believed the property was large enough to accommodate the two units, but they would still be required to comply with the regulations. Mr. Weiland understood Rufus Ribs could either work out of the building itself or out of the cart, but not both. Lisa Bright, CRA Executive Director, concurred with Mr. Weiland, adding there was a problem with the proximity of the kitchen versus the cooker, and Rufus Ribs had, therefore, considered purchasing a special cooker, in order to have a solidified unit in one spot. Motion Mr. Weiland moved to approve the minutes of August 14, 2007. Vice Chair Rodriguez seconded the motion that passed unanimously. X. Old Business: A. Approval of CRA Marina Dockage Agreement and Rental Rates for FY 2007-2008 (Tabled from August 14, 2007 meeting) 7 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 11,2007 Chair Taylor called for a motion to remove this item from the table. Motion Mr. McKoy moved to remove this item from the table. Vice Chair Rodriguez seconded the motion that passed unanimously. Mike Simon, Development Manager, pOinted out this item was brought before the board for approval of a unified docket slip rental rate, as well as the approval of a yearly renewable lease at the Boynton Harbor Marina, which was owned by the CRA. The current tenants were at the Marina prior to the CRA's ownership and remained there under the terms and conditions verbally agreed to by the previous owner. The first item for approval would be to establish a rental rate. The spreadsheet indicated rates of $14, $16, $17.60, $18 and $20 per linear foot. In addition to the $14 rate recommended, staff also suggested a minimum charge for a slip of $450 per month. Board suggestions included the feasibility of establishing two rates, whereby for boat owners currently paying below $14, the rate would be increased to $14, and for owners paying above $14, the rate would be standardized at $18. Concerns were also raised as to a decrease in the annual rental currently received by the Marina. Motion Vice Chair Rodriguez moved to approve the rate of $16 per linear foot, which would bring the rate close to that which is currently received. Mr. Simon addressed the issue of amenities in establishing a comparative rate to other slips and marinas. Lisa Bright, CRA Executive Director, advised the CRA received $2M from the Palm Beach County Waterway Bond Grant and wondered whether the board would consider setting a standardized rate, and whether the CRA could subsidize the rent out of the Waterway Bond money so that it covered the current income. This would allow the existing fisherman to remain at the Marina. The Waterway Bond access money would support public access to the Marina. She noted the CRA was about to enter a construction phase, and the fisherman had endured previous renovations. She believed it would be unjust for the fisherman to be penalized because staff wished to standardize legal issues and insurance issues. 8 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 11, 2007 Mr. Simon added the rates could be reviewed on an annual basis at the renewal of each lease period. Additionally, once renovations were completed and amenities were added, not only would the fishermen benefit, but rates could be adjusted as well. Ms. Bright indicated rent would be subsidized at the rate of approximately $24,000 for one year and $50,000 for two years during the renovation period, which would come from the Waterway Bond. Board concerns related to the loss of income, and utilizing the $2M grant for renovations rather than subsidizing rents. The board invited boat owners in the audience to provide input on this matter. Lynn Simmons, 700 Casa Loma Boulevard, owner of the "Delta Splash," a 38 foot boat, observed her dock rent increasing from $100 per month to $500 per month. She had been at the Marina for 25 years and would like to remain in Boynton Beach. As she is "just getting by," she looked forward to her business improving. Paul Fasolo, 1405 SW 25th Avenue, owner of the "Hammertine," commented his business had survived for some time and was not dependent upon the restaurants. The Boynton Beach Fire Department shut down his slip, which would have to be completely refurbished in order for his boat to be docked. He currently paid $450 per month basically to display a sign for advertising purposes. He believed the Marina was not a "real" marina in that it did not provide electricity or restroom facilities. Board discussion ensued and included the advantages attributable to the Boynton Marina, which included ocean access, and comparisons to amenities and fees for marinas in other municipalities such as Delray Beach, Lantana, Boca Raton and South Palm Beach. Mr. Simon emphasized the purpose of the Marina was to encourage only commercial- type enterprises. Rich Betterley, 5178 Rosen Boulevard, owner of the "Pelican I," a 29' 8" boat, commented his rate was high; therefore whatever rate the board selected would be lower. He added he believed the Marina provided impressive services and was drawing revenue to the State of Florida. Greg Knuth, 9340 Calliandra Drive, owner of "Knot Impressed," a 25 foot boat, one of the few private individuals at the Marina, commented he was assured the Marina would take care of the "locals," who contributed to the Marina and made it what it was. He had no objection to a small rate increase. 9 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 11, 2007 Vice Chair Rodriquez pointed out, at the $16 rate, a majority of the boat owners would enjoy a decrease. While the City would experience a small decrease in revenue, it would be close to the revenue currently collected. Chair Taylor reiterated staffs recommendation for the $14 rate and noted the motion on the floor for the $16 rate. Mr. McKoy seconded the motion. Motion Mr. Weiland made a substitute motion to approve the rate of $15 per linear foot. The motion failed for lack of a second. Chair Taylor commented, with the anticipated two-year construction phase, he would favor approving the $14 rate recommended by staff. He would agree to explore an increase after the completion of the renovations. Vote The motion failed, 2-2 (Wee Chair ROdriguez and Mr. Weiland dissenting). Motion Mr. Weiland made a substitute motion to approve a rate of $14.50. Chair Taylor passed the gavel to Vice Chair Rodriguez and seconded the motion. Vice Chair Rodriguez referred to the financials reflected on the spreadsheet, and noted if the board considered anything other than those figures, he would want to review the financials for those figures as well. Therefore, at this time, he would be opposed to any other rates. Motion Chair Taylor moved to approve the $14 rate as recommended by staff. Mr. Weiland seconded the motion for discussion purposes. Mr. Weiland believed, upon completion of the construction, with the improvement of the Marina and added amenities, rates would increase. However, at the present time, there were no amenities and the boat owners would be burdened by the construction. Vice Chair Rodriguez emphasized rates were not being increased, and at the $14 rate, 16 out of 24 boat slip renters would actually experience a rate reduction. At the $16 rate, 11 renters would experience a reduction. 10 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 11, 2007 Vote The motion passed 4-0. Mr. Simon requested clarification on the motion. Vice Chair Rodriguez replied the motion called for a rate of $14 with a minimum charge for a slip of $450 per month. Attorney Doody advised formal adoption of the form of lease was required, as the second portion of this item. Ms. Bright informed the board, in the event of a vacancy, staff could expeditiously use the lease form to re-rent the space. Mr. Simon added the current slip renters would be required to execute the lease by the end of September 2007 so that everyone would be signed up at the beginning of the fiscal year. Motion Motion to adopt the Community Redevelopment Agency Dockage Agreement, with the correction of any errors that need to be made. Vice Chair Rodriguez seconded the motion. Mr. Weiland expressed concern with regard to the $450 minimum monthly charge. Chair Taylor pOinted out the motion which passed, included the $450 charge. ~ The motion passed unanimously. B. Approval of Purchase Agreement with Mr. and Mrs. Gillard for 402 NW 12th Avenue in the amount of $170,000 (budget Line Item 58300-200) Ms. Brooks advised this item was on the agenda for the August 2007 meeting, and at that time, the board directed staff to approach the sellers to determine whether they would accept the appraised value for their property. The Gillards did agree to sell the property for the CRA appraised valuation of $170,000. Each party would pay customary closing costs. 11 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 11, 2007 Chair Taylor opened the floor for public hearing. No one having come forward, the public hearing was closed. Motion Mr. McKoy moved to approve the Purchase Agreement with Mr. and Mrs. Gillard in the amount of $170,000. Vice Chair Rodriguez seconded the motion that passed unanimously. C. Approval of Budget for FY 2007-2008 Mr. Weiland noted the budget called for the allocation of $350,000 for attorneys' fees, which was carried over from the previous CRA attorney. Mr. Weiland suggested, after working with the CRA for six months, the attorneys be requested to provide a projected estimate of their fees, based upon what they observed in the first six months. Susan Harris, Finance Director, advised budget amendments were made during the year as needed and there were four or five amendments made. Typically, Finance would go through the audit process, and the first budget amendment would be made in January or February. As the year progressed, the current budget would be evaluated and adjustments would be made. Motion Mr. Weiland moved to approve the budget for FY 2007-2008. Vice Chair Rodriguez seconded the motion that passed unanimously. XI. New Business: A. Consideration of Work Order # 1 with Burkhardt Construction (Seacrest Streetscape) in the amount of $24,800 Ms. Brooks advised the board previously approved a work order with Kimley-Horn for the completion of a design for Seacrest Boulevard from Boynton Beach Boulevard north to the canal. Staff recommended utilizing Burkhardt Construction for early-on value engineering, working with Kimley-Horn, making suggestions for construction methodology, and obtaining approval from the County. They would also price the project at 30% and 60% so that staff woud be aware of the financial burden associated with the project. The amount for this service would be $24,800. The contract was a design-build contract done through Requests for Qualifications (RFQ). The board selected Burkhardt, Hedrick Brothers Construction and Kaufman Lynn Inc. 12 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 11,2007 Vice Chair Rodriguez expressed concerns as to the necessity of spending $24,800, and putting the other companies at a disadvantage by having Burkhardt work on the design and bid on the implementation. Ms. Brooks advised Burkhardt was primarily a civil improvement contractor where Kaufman Lynn, Inc. and Hedrick Brothers were vertical contractors. Vice Chair Rodriguez pOinted out the CRA would be paying Kimley-Horn to do the engineering and design, and he suggested going out for Requests for Proposals (RFP) and have the construction companies, including Burkhardt, provide their proposal at that time, together with their pricing. Ms. Brooks advised the CRA had Burkhardt under a continuing contract for any project the board deemed suitable. This project would go out for RFP, and if the pricing was deemed to be high, staff would then go back and value engineer the project. Therefore, staffs request to approve the work order was intended to streamline the process. Dennis Haynes, Vice President, Burkhardt Construction, Inc. advised the board previously went through the RFQ process in selecting general contractors some months ago. It appeared the three contractors selected had various areas of expertise; Burkhardt's being downtown renovations, public infrastructure, and streetscape projects. The Promenade Project was done as a design-build, and in response to an RFQ. Burkhardt was selected by the board. The preconstruction services requested for this project were done in the design-build, and Burkhardt provided an initial opinion of probable costs when the plans were only 30% completed. The CRA spent less, upon commencement of the project, than what was provided as an initial opinion of probable cost at 30%. In paying for preconstruction services at the 30% plan, Burkhardt would review the plan and prepare a cost estimate. It was his understanding Kimley-Horn was under contract to the CRA to report back at threshold levels of 30%, 60% and final construction documents. Ms. Brooks advised early cost estimates for this project were approximately $8M; however, staff would be taking the project to its logical end, which was the C-16 Canal. To date, staff had not budgeted for this project. Staff anticipated development on Ocean Breeze and possibly the 4th and 5th Street townhomes up to MLK Boulevard. The board expressed concerns with Burkhardt having an unfair advantage over other contractors in bidding for the project. Attorney Doody opined he was not comfortable with Burkhardt being permitted to bid on the project. 13 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 11,2007 Ms. Brooks advised staff was required to follow guidelines, and Burkhardt was selected, as well as Hedrick Brothers and Kaufman Lynn, Inc., strictly based on performance, experience and credentials. Kimley-Horn would be doing the civil improvement work, along with the CRA's selected contractor. Ms. Brooks advised she was in error, as the CRA had already gone out to bid, and Burkhardt was the CRA's roadway and streetscape professional for the ensuing three years. Mr. Haynes advised Burkhardt was the contractor for the Ocean Avenue and the Promenade projects. Mr. Haynes added Burkhardt currently served 11 cities in Florida between Orlando and Miami, doing streetscape projects. In all the cities, Burkhardt was chosen through a qualifications-based selection, rather than a price-driven selection. Ms. Brooks reiterated the board was being asked to approve the Work Order # 1 for this item. Motion Mr. Weiland moved to approve Item A, under New Business, Work Order #1 with Burkhardt Construction, in the amount of $24,800. Mr. McKoy seconded the motion. Ms. Brooks advised the project would be brought back before the board as additional dollars were allocated. Additionally, staff would provide the board with the 30% and 60% plans along with estimated prices, as well as a list evidencing the top three firms selected. Vote The motion passed unanimously. B. Consideration of Purchase Agreement with Elaine Venturelli for 508 N. Sea crest, 103 NE 4th Avenue and 105 NE 4th Avenue in the amount of $545,000 (BUdget Line Item 58300-200) Ms. Brooks advised staff began working on this project two years ago, having purchased vacant land at a price below its appraised value. The land was located at the southwest corner of Seacrest and NE 4th Avenue. Because of its proximity to Ocean Breeze, the board determined it would be a good place to assemble properties in the area. She provided a PowerPoint presentation indicating the Ocean Breeze site and the three new houses being constructed on Sea crest. These projects would be very visible 14 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 11,2007 from Boynton Beach Boulevard and would be instrumental in causing the private sector to become more interested in developing in the Heart of Boynton (HOB). The CRA currently assembled apprOXimately 2.0 acres of the 5.5 acres for the entire block. The Boynton Beach Faith Based CDC owned approximately one acre within the block and was interested in partnering with a for-profit developer to develop their site in conjunction with the CRA parcels. Staff believed there were parcels the CRA could not purchase, including the residence of HalVey Oyer, Jr., the parking lot for the Treasure Chest Child Care Center, and a single-family-owned home, which did not require redevelopment. The remainder of the block required redevelopment. Staff anticipated bringing an RFP/RFQ for development of the site to the board for approval after the development agreement was finalized for Ocean Breeze. Staff would contInue to assemble properties within the block to the extent it was financially feasible, or, if the board directed otherwise. Ms. Brooks informed the board Ms. Venturel/i had agreed to sell at the appraised value and staff recommended the board approve the purchase of the three properties. Funds had been provided in the bUdget for such purchase. The CRA had purchased property from Mike Parker on which three houses were being constructed. Mr. Parker owned the property rezoned by the City from commercial to single-family and the Oty requested the CRA purchase the land, so there were no legal iSSues. Some of the properties purchased by the CRA were vacant land, some were prefabricated homes, and some were standard construction homes. The prefabricated homes were not up to Code, and their value was significantly Jess. The first chunk purchased was a landlOCked piece of vacant land for which the CRA paid below the appraised value. Chair Taylor commended staff, and indicated he was in favor of the purchase. Motion Mr. Weiland moved to approve Item B, the purChase of the Venturel/i property at 508 N. Sea crest, 103 NE 4th Avenue, and 105 NE 4th Avenue, for $545,000. Vice Chair Rodriguez seconded the motion. Ms. Brooks advised it was staff's intent to demolish the properties, and to solicit requests for proposals to develop the property. 15 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 11, 2007 Vote The motion passed unanimously. C. Consideration of Purchase Agreement with Richard and Linda Emilcar for 511 NE 1st Avenue in the amount of $210,000 (Budgeted Line Item 58300-200) Ms. Brooks, advised the sellers agreed to sell the property for the sum of $210,000, which was below the appraised value of $220,000. Motion Vice Chair Rodriguez moved approval. Mr. Weiland seconded the motion that passed unanimously. D. Consideration of Burkey Risk Services, Inc. Insurance Proposal for FY 2007-2008 Ms. Harris advised the proposal was before the board as the amount of properties purchased in the last year had risen. Acquisitions included the Marina, its public parking spaces and WiFi equipment. The insurance needs of the CRA had grown tremendously, and it was necessary for staff to have a comprehensive review of its insurance program. The City's Risk Manager, Chuck Magazine, had worked with Ms. Harris through this process, including the Requests for Qualifications for a broker of record, who would provide the comprehensive services required. The proposal before the board was a recap of what was approved in the budget. Staff requested the board's approval of the proposed insurance program. Motion Vice Chair Rodriguez moved to approve. Mr. Weiland seconded the motion. Ms. Brooks advised the coverage included all the properties within the CRA district. Chair Taylor pointed out a typographical error included in the description of property covered. Ms. Brooks advised the error, "Newly Acquired Properly,'! would be corrected to "Newly Acquired Property." Vote The motion passed unanimously. 16 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 11, 2007 E. Consideration of a Direct Incentive Funding Agreement for Eastside Lofts Lisa Bright, CRA Executive Director, pOinted out the CRA had been working with James Seifert, of Eastside Lofts Development, LLC, for three years in an attempt to develop the project. With the downturn of the market, Mr. Seifert had switched the CRA's residential project on Federal Highway to include a large affordable housing component. Staff requested the board's permission to begin negotiations to create a direct incentive funding program to support the project. Bradley Miller, Miller Land Planning Consultants, advised he represented the owner. The site spanned Federal Highway and 4th Street and in between 5th and 6th Streets; the old Boynton Hotel site. He proposed to have a development that would include two separate towers; one facing Federal Highway, a retail component on the ground level, and residential above it. The parking would be off 4th Street and between the two towers; with a portion on the ground level and residential above. The project would be comprised of 48 units, with 12 units, or 25%, allocated for workforce housing. The remainder, 36 units, would be at market rate. The retail space comprised approximately 3,000 square feet on Federal Highway. Ms. Bright added the CRA could also work with Mr. Miller to develop affordable commercial space for new businesses. This project would involve extensive legal review. Staff inquired if the board would be interested if offered some type of financial incentive. The former CRA board historically shared in 50% of the TIF throw-off for 10 years. If this project threw off $500,000, the CRA would provide East Side Lofts with $250,000 for 10 years, over time. The site plan extension for this property was contingent upon beautification of the perimeter of the property, and this had not yet Occurred. James Seifert, Eastside Lofts Development, LLC, indicated he was working on getting these incentives in place and to begin the marketing. They would be putting in a construction trailer as well as a sales trailer. There was a site plan in existence and sufficient parking underneath to accommodate all the units. Ms. Bright pointed out no zoning changes were required and there was no requirement for workforce housing on this particular property. Mr. Seifert indicated pricing for the non-workforce hOUSing would be between $260,000 to $380,000. Mr. McKoy inquired whether staff would like the motion to include consideration of incentives for new business start-ups. 17 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 11,2007 Mr. Bright commented she would like to explore the option of considering smaller bays. Motion Mr. McKoy moved to direct staff to come up with incentives for East Side Lofts Development, LLC, and to include incentives for smaller or first-time business start-ups. Vice Chair Rodriguez seconded the motion. Vice Chair Rodriguez requested a commitment from Messrs. Miller and Seifert as to the beautification of the perimeter and timeline prior to voting on this item. Mr. Seifert advised he would proceed with the landscaping within eight weeks. Mr. Miller indicated they would follow through with Kevin Hallahan, the City Forester, on that issue. Vote The motion passed unanimously. F. Consideration of Entering into a Five-year Contract with Grucci Fireworks for the Fourth of July Salute to Independence Chair Taylor pointed out the contract called for a rate of $50,000 per year with a deducted amount over the first three years as follows: $12,000 the first year; less $8,000 the second year, less $4,000 the third year. He believed the last fireworks display was the best he had observed in the City. The contract provided that the fireworks would be produced and displayed on a barge on the Intracoastal Waterway. Kathy Biscuiti, Special Events Manager, advised she would be pleased to answer any questions. The CRA was entering into the "National Class of Fireworks" which included a sound technician. Although the last display was excellent, she did observe areas which could be improved. The Fire Department was impressed by the display and requested the same crew be used next year. The board agreed the fireworks and overall celebration deserved high praise. The board did raise concerns as to the celebration being rained out or cancelled pursuant to an Act of God after the deposit had been paid. Ms. Biscuiti explained a backup date was always provided, which was usually the following day. The City did make the 50% payment up front this year, which she believed was customary with all the fireworks companies. 18 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 11,2007 Motion Mr. Weiland moved to approve Item F. Vice Chair ROdriguez seconded the motion that passed unanimously. G. Consideration of Exempting Ocean District from the Utility Tax for restaurant seating Ms. Bright advised many restaurants and cafes were opening along Ocean Avenue, which was designated as a commercial corridor. Staff conducted preliminary comparisons with adjacent municipalities, and it appeared the City's seat taxes were a bit intense for the small independent businesses and prohibited small business development growth. Staff, therefore, recommended the area from Ocean Avenue at the Marina, down through Seacrest, be exempted from paying the tax. The board expressed interest in having the exemption for the entire Federal Highway corridor. Ms. Bright advised she would favor any expansion. Kim Kelly, 529 East Ocean Avenue, (Hurricane Alley) discussed utility tax fees she was required to pay for additional seating at the restaurant as well as an annual fee, the total of which was estimated to be $8,000. She communicated with CRA staff, and they supported a restaurant tax exemption to aid the small business owners. Chair Taylor agreed an exemption should be considered for the entire downtown area, which would have to go before the City Commission as the Code would have to be amended. He added neither Delray Beach nor Boca Raton charged a table tax. Ms. Kelly pointed out the more help the City and CRA could provide, the more the businesses would thrive. Motion Mr. Weiland moved for the CRA to recommend this item be sent back to the City Commission to exempt the ocean district from the utility tax and, in addition, make the exemption more broad based throughout the downtown area to include the entire CRA district. Vice Chair Rodriguez seconded the motion that passed unanimously. H. Consideration of CRA Lobbyist Chair Taylor advised he wished to address this item to determine the feasibility of the CRA sharing the City's lobbyist in Tallahassee, Smith and Ballard, which was believed to be one of the best lobbying firms in the State of Florida. He believed it would be cost 19 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 11, 2007 effective to share the expenses between the City and CRA, and would obviate the need to deal with two separate lobbyists. Ms. Bright noted the CRA secured an independent lobbyist as the CRA was involved in eminent domain cases which were critical to the development of the downtown area. Thus, the CRA secured their lobbyist and focused on the CRA's issues. The only request she would have, as it would be the board's lobbyist rather than staff's lobbyist, was that the CRA and City execute separate contracts. There was no connectivity between the lobbyists and the CRA board and staff. The issues were all run through the City Manager. The board had no objection to having separate contracts. The board directed staff to enter into a lobbyist contract. XII. Comments by Staff None. XIII. Comments by Executive Director Ms. Bright provided an update on the MLK corridor development agreement, adding she met with Cito Beguiristain, Vice President of the Auburn Group, to determine timelines. She advised Mr. Beguiristain it was imperative he provide a contract to CRA counsel for review within 10 days in order that the item could be placed on October 9, 2007 agenda. If approvals by the CRA and City Commission were not received by the end of the year, the CRA would be unable to meet the April 2008 target date for the zoning approvals by the Department of Community Affairs (DCA). She advised she would follow up on this matter. Ms. Bright advised she received three responses to the RFP for Boynton Breezes, and this would be brought before the board on October 9, 2007. Ms. Bright advised a board member made a request for staff to break down the TIF districts. Staff was working on this and it would be forthcoming. Lastly, Ms. Bright requested someone to spearhead the review process for her evaluation and make a recommendation with respect thereto. Chair Taylor agreed to take on this task. 20 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 11, 2007 XIV. Comments by CRA Board Attorney None. XV. Adjournment There being no further business to discuss, the meeting adjourned at 9:05 p.m. Q~ Stephanie D. Kahn Recording Secretary 09-12-07 09-18-07 21