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Minutes 04-08-08 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY MEETING HELD ON TUESDAY, APRIL 8,2008, AT 6:30 P.M. IN CITY COMMISSION CHAMBERS, 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 6:29 p.m. II. Pledge of Allegiance to the Flag and Invocation Mr. Hay gave the invocation, followed by the Pledge of Allegiance to the Flag. III. Roll Call The Recording Secretary called the roll. A quorum was present. IV. Agenda Approval: A. Additions, Deletions, Corrections to the Agenda None. B. Adoption of Agenda Motion Mr. Hay moved to approve the agenda. Ms. Ross seconded the motion that unanimously passed. V. Announcements & Awards: A. Oceanfront Concert by Eloquence, April 18, 2008, from 6-9 PM at Oceanfront Park 1 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida April 8, 2008 Kathy Biscuiti, Special Events Manager, reviewed the upcoming Oceanfront Concert featuring the band "Eloquence" specializing in disco and R&B. It was reported there were more people at the last concert than ever before. Chair Taylor noticed when the band took a break, there was no music. Another time there was recorded music on the break and people stayed and danced. It was suggested having recorded music played during band breaks. Additionally, it was reported there were beachgoers waiting at a trolley stop to go to the beach. The trolley runs on a continuous loop, but the trolley did not come back to the stop. Eventually it did, but by that time the beachgoers were blocks away. Ms. Biscuti explained the shuttle broke down and they got a new shuttle quickly. VI. Consent Agenda: A. Approval of the Period-Ended March 31, 2008 Financial Report B. CRA Policing District Stats for the Months of February and March 2008 (Info. Only) C. Boynton Beach CRA and Trolley Website Updates (Info. Only) Item B was pulled as Mr. Hay had questions on the statistics. Motion Ms. Ross moved to approve the Consent Agenda. Mr. Hay seconded the motion that unanimously passed. VII. Pulled Consent Agenda Items: B. CRA Policing District Stats for the Months of February and March, 2008 (Info. Only) Mr. Hay inquired what the 1,506 calls for services were for, or what category the greater number of the calls pertained to. Sergeant Joe DeGiulio, CRA Policing Unit, explained they were calls that go through Dispatch, and could be for disabled motorists, police assists or any variety of issues. Next month a breakdown of the calls would be provided. It was noted the calls were for the CRA district only and there were 400 fewer calls than last year. 2 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida April 8, 2008 On another matter, Mr. Weiland reported a problem involving a homeless person and requested an officer check on the matter. A "No Trespassing" sign was not posted on the premises and an agreement between the landlord and the Police was needed. The landlord would be contacting Sergeant DeGiulio about the matter. Motion Mr. Hay moved approval. Ms. Ross seconded the motion that unanimously passed. VIII. Public Comments: (Note: comments are limited to 3 minutes in duration) Gertrude Sullivan, 201 NE 6th Avenue, asked why the City does not have a place for homeless people to sleep instead of having police arrest them. She expressed the City needed solutions. Chair Taylor explained there is a center in West Palm Beach for them, but most of the homeless do not want help and do not want to leave the street. Additionally, not every City has facilities for them. Ms. Ross explained County Commissioner Jeff Koons and Representative Susan Bucher have been addressing this issue lately on the County level, and it was bringing it to the attention at the City level. Mr. Hay agreed with Ms. Ross that the homeless are a problem and the City should look into it. Herb Suss, 1711 Wood Fern Drive, repeated a question he posed to the City Commission last week. He explained the Auburn Development Group has a lobbyist. He asked what the Commission rate to the lobbyist was. He advised Auburn has access to the City which, he asserted, adds to the cost of the project and is taxpayer money. He did not see the logic behind having a lobbyist that adds to the cost of doing business with the developer. He further announced there was still a cloud hanging over the City. He suggested watching the budget and which direction it was heading. Chair Taylor explained the developer hired the lobbyist at no cost to the taxpayers. All developers have lobbyists. Auburn has multiple lobbyists. They build in other cities besides Boynton Beach. Mr. Suss explained the cost of the lobbyist comes in somewhere down the line and many people have a problem with that. He felt the funds being paid to the lobbyist should be taken off the top of the project cost when the City does business with them. Chair Taylor reiterated the Sunshine Square redevelopment project, the Promenade and the project on Woolbright all have lobbyists. It is a common practice. 3 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida April 8, 2008 IX. Public Hearing: None. X. Old Business: A. Consideration of Second Amendment to DIFA between the CRA and Boynton Waterway Investment Associates Vivian Brooks, Assistant Director, explained this item was a result of a meeting regarding renewing the lease with Boynton Waterway Investment Associates, which is the developer of the Promenade. The project is situated on CRA owned land, formerly known as the Relax Inn site. The issue raised by staff was at the time the original lease was executed, there was no tax burden to the CRA. However, once leased, it became taxable at $28K per year. The developer, Boynton Waterways, also under a pinch due to the downturn in the development market, wanted to maintain the current lease amount. Staff and counsel for the developer were able to agree on an amendment. Once the project is completed and on the tax rolls, a percentage of the taxes would go back to the developer, but the deferred rent, which is the difference between the $28K and the monthly rent, would be deducted from the amount the CRA would pay the developer. Essentially, they were taking it off the back end of the incentive. Mr. Hay inquired how affordable commercial space was determined. Ms. Brooks explained it was the average going rent of commercial-retail space reduced by about 20% for a portion of the retail space in the project. That was contained in the original DIFA agreement. Lisa Bright, Executive Director, explained the goal was to encourage retail development. The CRA wanted those spaces to assist businesses getting a start. It was basically an exchange; the developer had to provide the space, and they were offering those spaces to small businesses looking to start up. In this particular project, the allotted space allowed two businesses to occupy two full bays which had the reduced rents. Motion Mr. Hay moved to approve. Ms. Ross seconded the motion that unanimously passed. B. Consideration of Renewing Lease with Boynton Waterway Investment Associates This item was simply a one-year lease renewal. 4 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida April 8, 2008 Motion Mr. Weiland moved to approve. Mr. Hay seconded the motion that unanimously passed. C. Consideration of Special Events Interlocal Agreement Ms. Bright explained the item is being brought forward because last year during budget discussions, the City Manager sought support to no longer fund the special events agreement that was created the year before. That position was supported by the City Commission and it was flipped to the CRA with the Special Events Manager reporting to the CRA Director. Subsequently, the CRA sought sponsorship dollars to offset the reduction in revenue from the City. There were a few instances involving various department heads who continued to invoke the agreement, because the agreement still stands. The CRA counsel advised the CRA needed to consider a rescission or a modification. She spoke with the City Manager who informed her he would be recommending not to financially support special events again this year. She noted the agreement remains in effect through 2009. Mr. Weiland explained this was done because of a budget crunch. He expressed, however, the entire City benefits, as well as people outside the City when special events are held. He would consider a modification in the future although it may not be to reinstate the present 49% of the amount. Chair Taylor commented the City Commission voted to take it completely out of its budget and the City would be looking at the same fiscal situation for a while. He suggested rescinding the current interlocal agreement, and if after budget hearings there were funds, they could reconsider it at that time. He thought it was senseless to have the agreement on the books. Mr. Hay asked if the $190K was the total cost or the City's part. Ms. Bright explained in fiscal years (FY) 06/07, it was $381,825 and an additional $72K for staff costs. The City was supporting about $450K. In FY 05/06, the CRA did not have the ILA, but there also was a City cost. Mr. Weiland agreed with the Chairman's comments, but noted next week they would be hiring an Economic Development Director and City Educational Liaison. He explained he would vote in favor of rescinding the agreement, and would be interested in seeing where the money is going in the budget process. Ms. Ross inquired how this would affect the Special Events Manager. Ms. Bright responded it would not affect her. They received financial support from the Auburn Group and Ruden McClosky. She expressed there was a concern at the staff level, that 5 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida April 8, 2008 with the downturn of the market, they would not be as flush next year with the sponsorship dollars. Mr. Hay expressed the events have a big effect on the community, but he would like to see the City do whatever it could. If there was any money left at all, he thought this item should be put on the top of the list, but must be rescinded at this time. Motion Mr. Hay moved to approve (the rescission). Ms. Ross seconded the motion that unanimously passed. D. Consideration of Renewing Lease with Jesus House of Worship Ms. Bright explained this was a similar lease to the Promenade. This item was a settlement agreement specific performance contract from last year which allowed the church to stay in the building for a nominal rent because they knew they would be redeveloping the area. She spoke with the Auburn Group about their plan for the area, and received their approval to renew the lease for one additional year. The CRA did not want to charge market rate rent, because doing so would cause a tax implication and they have no way to recoup it from this group. They recommended allowing Pastor Evans to stay at the rate of $10 per year so it would not be red flagged by the Property Appraiser's office. She believed it was desirous of the community to have the church there instead of tearing down the building. She advised this item would come back to the board next year as well. Mr. Hay asked the CRA police to provide information on how much activity is around the area of the church, as it related to the 1056 telephone calls received. Motion Mr. Hay moved to approve the lease renewal. Mr. Weiland seconded the motion that unanimously passed. XI. New Business: A. Consideration of Purchasing Property Located at 114 NE 5th Ave. Ms. Brooks explained the CRA has been assembling properties on NE 4th and 5th Avenue, east of Seacrest and north of Boynton Beach Boulevard. There was an opportunity to purchase vacant land there and there were a number of homes not up to Code. It was thought it would present an opportunity to provide up-to-date decent affordable housing. This structure was on 5th Avenue and was the last remaining home. The house is homesteaded, but was confirmed as rented by the owner and renter. The 6 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida April 8, 2008 seller agreed with the price, which was supported by an independent appraisal. She noted the appraisal was slightly more than what they were paid. The CRA could not put out an RFP for all the homes on 5th Avenue. They were still working on assemblies on 1 st and 4th, but some homeowners were not responsive to the CRA. She advised the CRA assembled about 3 acres in total and the whole block was about 5.5 acres. They were aware they would not get all parcels and they were working to relocate some parties, but she expressed they were also confident that eventually it would happen. Motion Mr. Hay moved to approve. Mr. Weiland seconded the motion that unanimously passed. B. Discussion of Current CRA Continuing General Contract Agreements Ms. Bright explained this item was brought forward at the request of Vice Chair Rodriguez. She explained his request inquired how a contractor was able to get on the CRA approved list of vendors. She responded the CRA does not operate the same way the City operates. The City Development Department has 50 employees and can handle individual bidding projects. The CRA does not. The CRA chose to go out to continuing contract and they selected three firms, with different specialties, and negotiated contracts that would be brought back to the board in June. The difference in her statement and the email to the board members regarding the Residential Improvement Grant was that particular program offers 17 grants. If they went to independent general contractors, they would need 17 different bids with 17 different general contractors and it would be nearly impossible for the staff to handle. Ms. Bright was looking to the board for direction. There was brief discussion of the item and it appeared the board was pleased with the way the process was currently working. They did, however, decide to table the item to the June meeting to allow Vice Chair Rodriguez to be present. XII. Future Agenda Items None. XIII. Comments by Staff Ms. Biscuti announced there was a packet of photos from the Commodores concert. Commissioner Ross left the dais at 7:12 p.m. 7 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida April 8, 2008 XIV. Comments by Executive Director Ms. Bright advised in the spring of 2007, a City Commissioner was concerned the CRA did not perform appropriately regarding the Old High School. That item languished for many months as an agenda item, for the City Commission. Meanwhile the CRA board decided the high school should be discussed with a larger project area, however the item was never removed from the City Commission Agenda. She was looking for direction from the CRA, in light of the RFQ and RFP the CRA and City staff were working, on for the Town Square area. She expressed the item was still outstanding and she needed to know if they felt the responsibility for the high school should be with the CRA or not. Commissioner Ross returned to the dais at 7:14 p.m. The board discussed the matter with some members supporting rehabilitating the structure and others in support of demolishing it. The structure could be a jewel but it was an expense. Discussion then turned to the Schoolhouse Museum. The project was successful because staff got behind it. Chair Taylor advised, for the Children's Schoolhouse Museum, it was a fundraising and City effort. When the initial discussion of the high school was held, the price to rehab the structure was $3M and now was $8M. The building is rotten and there was hardly anything to save. He explained perhaps some part of it could be saved and something else could be built there to save the sentiment. The City, however, was still pouring money into it every month to maintain it and it was in shabby condition. He expressed if it was worth that much money, someone from the public sector would have stepped in. He explained there are other more pressing needs in the community than the building. Chair Taylor explained they waited for a master plan, and then went out to proposal. No proposals have been received. The cost to maintain the building was about $18K to $24K per year in addition to $27K for insurance. There was agreement to let the City Commission make the decision. On a new matter, Ms. Bright reported she received the City's appraisals on MLK property pertaining to the potential CRA and City's land swap and sale purchase. Attorney Doody recommended both parties obtain independent appraisals and they would present them at next month's meeting so they could proceed with the purchase agreements to place all the MLK land under the CRA. XV. Comments by CRA Board Attorney None. 8 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida April 8, 2008 XVI. Comments by CRA Board It was noted in May, it would be known if American Realty received CWHIP funds. Ms. Ross thanked Ms. Bright and the CRA staff for the trolley tour of the south route. The CRA was receiving 10 calls a day from residents who did not have independent travel, who could now get around through the trolley. Mr. Hay inquired if they would have a trolley stop at the library. Ms. Bright explained they were trying to evaluate what works for the immediate moment and that stop would be better addressed during the next budget. Chair Taylor received a letter from the Florida Redevelopment Association sent to Senator Jeff Atwater requesting he vote against Senate Bill 1528, which would abolish CRAs in Florida. The CRA would be sending a letter to him, and all of the other representatives. Ms. Ross inquired if Representative Storms was the legislator seeking to abolish CRA's. Ms. Bright explained she was and there were other bills seeking the same result due to property tax reform. The South Florida Business Journal had a good article about North Miami, but there are people giving negative press. There was a push to stop all economic development in Florida, and it is not necessarily gaining ground. Ms. Bright spoke with the City's lobbyist, and meetings would be scheduled. Chair Taylor explained there is a card detailing what the CRA has accomplished. He suggested that information be brought forward when meeting with officials. Ms. Bright and Chair Taylor already met with County Commissioner Mary McCarty and others to present the CRA's annual report from last year and this year's audited financial statements. Ms. Bright noted they were already aware of the issue. XVII. Adjournment There being no further business, the meeting adjourned at 7:29 p.m. ~~r$kt Recording Secretary 040908 9