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Minutes 04-01-08 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD SPECIAL MEETING OF TUESDAY, APRIL 1, 2008, AT 5:45 P.M. IN THE COMMISSION CHAMBERS AT CITY HALL, BOYNTON BEACH, FLORIDA PRESENT: Jerry Taylor, Chair Woodrow Hay Marlene Ross Ron Weiland Lisa Bright, Executive Director James Cherof, Board Attorney ABSENT: Jose Rodriguez, Vice Chair I. Call to Order Chair Taylor called the meeting to order at 5:49 p.m. and noted the purpose of the meeting. American Realty was applying to the State of Florida for an allocation of federal low-income housing tax credits to develop the rental portion of the Ocean Breeze site. The State required a match from local government of at least $200,000. American Realty, managing partner of Madison Breeze, LLC, was requesting a grant of $200,000 from the CRA to meet the State's requirement. II. Pledge of Allegiance to the Flag and Invocation The Pledge of Allegiance to the Flag was led by Chair Taylor, who also gave the invocation. III. Roll Call The Recording Secretary called the roll. A quorum was present. IV. Consideration of Assignment of Purchase and Sale Agreement from Ocean Breeze, LLC Vivian Brooks, Assistant Director, noted that in furtherance of American Realty's application to the State for an allocation of low-income tax credits, IRS regulations required a single-asset entity be formed. It was intended that the contracts originally entered into in January 2008 would be assignable to a single- asset entity for this purpose. Ms. Brooks assured the board American Realty was neither abandoning the project nor selling it to another developer to be flipped. American Realty could not close on the property until funding was received from the State. Other conditions set forth in the original contract would prevent such action, and staff was resolute in its intent that the property be developed. Motion Mr. Weiland moved approval of Item IV. Mr. Hay seconded the motion that passed unanimously. V. Consideration of Grant to Madison Breeze, LLC Chair Taylor indicated it was necessary to commit to a $200,000 grant in order for American Realty to go forward with its application to the State. Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida April 1,2008 Ms. Brooks noted the grant was a "threshold" item required by the State. The State maintained a substantial checklist of requirements which were to be met in order to participate in the process. While the land had been significantly written down, it would take some time to determine whether the State would consider the land writedown as a match from the local government. Submission of the executed grant verification form was required by the State in order for the tax credit allocation to be considered. Time was of the essence in that the application was due April 7, 2008, and the process was highly competitive. Numerous applications had been submitted to the State, chiefly as a result of the market downturn. Lisa Bright, Executive Director, noted the State's requirement for the additional $200,000. The contribution would ensure the funding opportunity was not lost. Motion Mr. Weiland moved approval. Mr. Hay seconded the motion that passed unanimously. VI. Consideration of Addendum to Purchase and Sale Agreement between the CRA and Madison Breeze, LLC Ms. Brooks advised the addendum to the purchase contract set forth the obligations of the CRA and Madison Breeze relating to the $200,000. The addendum was subject to Madison's receiving funding from Florida Housing Finance, closing on the property and obtaining a building permit for the site. It also required American Realty to contribute $200,000 (provided by the grant from the CRA) to a down- payment assistance program to aid renters in the transition into homeownership. If the application was not approved, the CRA would have no liability for the funding. Motion Mr. Hay moved approval. Ms. Ross seconded the motion that passed unanimously. Attorney Cherof noted that generally, Chair Taylor would not be asked to execute the documents until the other party had signed. However, the documents were required to be mailed out overnight in order to reach Tallahassee by April 7, 2008. Chair Taylor consented to execute the documents. VII. Adjournment There being no further business to discuss, the meeting properly adjourned at 5:59 p.m. ~ [)f--. Stephanie D. Kahn Recording Secretary 040808 2