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
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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.
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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.
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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.
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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
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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
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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.
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Community Redevelopment Agency
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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.
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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
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