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Minutes 05-05-99 MINUTES OF THE COMMUNITY REDEVELOMENT AGENCY MEETING HELD IN CONFERENCE ROOM C, WEST WING, CITY HALL BOYNTON BEACH, FLORIDA WEDNESDAY, MAY 5, 1999 AT 6:30 P.M. PRESENT: ALSO PRESENT: Gerald Broening, Mayor Melody Green, Recreation Superintendent Henderson Tillman, Vice Mayor Wilfred Hawkins, Interim City Manager Nellie Denahan, Commissioner Mike Rumpf, Planning & Zoning Director William Sherman, Commissioner Dale Sugerman, Assistant City Manager Ron Weiland, Commissioner John Wildner, Parks Superintendent I. CALL TO ORDER Mayor Broening called the meeting to order at 6:30 p.m. II. AGENDA APPROVAL Commissioner Denahan moved to approve the Agenda. Motion seconded by Commissioner Weiland. Motion unanimously carried. III. PRESENTATIONS Mayor Broening stated there were presentations, which will be made this evening, and that Larry Finkelstein will make the first presentation on the Boynton Promenade. A. Boynton Plaza by Larry Finkelstein Mr. Larry Finkelstein of 114 N. Federal Highway, Suite 202, Boynton Beach took the podium. Mr. Finkelstein said his presentation would be on the redevelopment of Boynton Beach Plaza and the first block of the Boynton Beach Promenade from Federal th Highway to NE 6 Street. Mr. Finkelstein read to the audience a portion of the CRA statute dealing with the redevelopment of the CRA area by private enterprise. Mr. Finkelstein said he was private enterprise, asking for CRA assistance for redevelopment in the core area. Mr. Finkelstein said he was also seeking conceptual approval and assistance for his project. This would permit him to begin start his project in phases to conform to the Visions 20/20 Plan beginning now, instead of sometime in the future. Mr. Finkelstein informed the Board that there are restrictions in some of the leases that preclude redevelopment of the property for up to 18 years. Mr. Finkelstein said his project would require tenant relocation, major site plan modifications, architectural and landscape MEETING MINUTES COMMUNITY REDEVELOPMENT AENCY BOYNTON BEACH, FLORIDA MAY 5, 1999 design work, demolition, possibly the loss of some tenant base and keeping some space vacant, as well as not renewing some current leases. Mr. Finkelstein said he wanted to change the focus and direction of the Plaza to merge and interact with the Promenade and the new pond park. Mr. Finkelstein presented artist’s renderings of his project to the Board and reviewed the plans with the Board. Mr. Finkelstein said his project would begin with the first block and the demolition would be on the south end of the Plaza and said the total cost of phase 1 is $7 million. Mr. Finkelstein stated his proposal is an economic and financially feasible proposal and is in accordance with the Visions 20/20 Plan and the CRA. Mr. Finkelstein read to the Board a letter he received from James Duncan & Associates regarding their approval of his project. Mr. Finkelstein also read a letter from St. Mark’s Catholic Church, which states the Church is in agreement with the plans. Mr. Finkelstein reviewed the proposed entrance to the Plaza with the Board. Mr. Finkelstein stated that in future phases there are plans for a very large plaza for public gatherings, festivals, etc. Mr. Finkelstein said there would be a 15’ outside area for sidewalk cafes and pointed out this area on the plans. Commissioner Denahan inquired about the Relax Inn. Mr. Finkelstein said he has not addressed that issue at this time and he could complete phase 1 of his project without the Relax Inn. However, Mr. Finkelstein stated the building extends all the way to the property line. Mr. Finkelstein stated that in order to do a full 60’ promenade, 10 to 15 feet from the Relax Inn property is needed. Mr. Finkelstein presented the benefits of his project to the Board and said he was asking for the following incentives ? A waiver of fees; ? Assistance with removal of the lease conditions, restricting redevelopment; ? Assistance with cancellation of long term lease renewals; and ? Assistance with Palm Beach County grants. Mr. Finkelstein presented some other incentives that he was seeking in connection with the loan on the property. Mr. Finkelstein said the CRA budget has approximately $521,000. There is a CORE Grant for Boynton Beach of $65,000 and a CBGD grant of $125,000 for a total of $711,000 available. Mr. Finkelstein said the City could place a lien on the property as security. Also, a development agreement needs to be formalized and signed. 2 MEETING MINUTES COMMUNITY REDEVELOPMENT AENCY BOYNTON BEACH, FLORIDA MAY 5, 1999 Mr. Finkelstein was asking the Board for a consensus this evening and then a development agreement could be approved. Mr. Finkelstein also read some recent newspaper articles on CRA development taking place in other cities in the County. Mr. Finkelstein said there were all kinds of tools available to stimulate CRA development. Mr. Finkelstein said he would be glad to answer any questions the Board may have. A gentleman in the audience asked Mr. Finkelstein when his project could get started and Mr. Finkelstein said if the Board approved it, probably within 90 days. Mayor Broening asked if anyone had any ideas on much it would cost to acquire the Relax Inn. Mayor Broening said the project would not be vital without the Relax Inn. Mr. Finkelstein said his project is o.k. without the Relax Inn, but the promenade could not be completed without the Relax Inn. Mr. Finkelstein said he had a letter of intent for the Relax Inn and would be glad to discuss it further with the Board. A gentleman in the audience asked if Mr. Finkelstein was asking the CRA to take the responsibility for condemning the leases that currently exist at the Plaza. Mr. Finkelstein replied that this was not his intent and that there were some restrictions in the current leases that do not allow redevelopment of the property. Mr. Finkelstein would like that provision in the lease cancelled. Mr. Finkelstein said that eventually his project might become larger than the marina project during the various phases and tonight he is merely presenting a concept. Mr. Finkelstein said that he already has people who have expressed an interest in the Plaza. A gentleman asked if Mr. Finkelstein was requesting the entire CORE Grant of $65,000. Mr. Finkelstein said he was just listing sources that are available and has not asked for any specific amount. The question was asked how long the grant money would be available and Mr. th Finkelstein said he thought the application deadline for grant money was June 4. Mr. Harvey Oyer asked if Mr. Finkelstein would be adding a building to the north end of the plaza. Mr. Finkelstein said he planned to do this in a future phase. Mr. Oyer inquired if the parking garages would be adjacent to Federal Highway and was informed they were. Mr. Oyer questioned if a wider road going into St. Mark’s would be more desirable. Mr. Finkelstein said he would like to see a wider road. 3 MEETING MINUTES COMMUNITY REDEVELOPMENT AENCY BOYNTON BEACH, FLORIDA MAY 5, 1999 Mr. Oyer also thought that Cypress Manor was closed and this would be a good time to approach the owners of that property, to which Mr. Finkelstein agreed and said he left the curb out of his plans for that specific reason. Commissioner Denahan asked Mr. Finkelstein to be specific in what he would like from the City in the terms of incentives. Mr. Finkelstein said because this was a workshop, he did not come up any specific outline. Mr. Finkelstein said he would need assistance with the leases if that becomes an issue. Commissioner Sherman inquired if Mr. Finkelstein had a specific figure in mind. Mr. Finkelstein said the financial assistance could be done in many ways, depending upon the Board. It could be through a loan or a loan guaranty or through cash or any combination of these. Mr. Finkelstein said he has a commitment and is buying the shopping center in any event. Mr. Finkelstein said that seven of the tenants are on a month-to-month basis and the Bank wants the tenants on long-term leases. However, if the tenants were put on long- term leases, he would not be able to redevelop the plaza because he now has long- term tenants. The bank is willing to take an additional guarantor and to take a cash escrow. The bank is also willing to do some other things that would not require Mr. Finkelstein to place the tenants on long-term leases. Mr. Finkelstein said only two tenants are involved with these restrictions. Mr. Finkelstein said he would be looking for about $300,000 to $375,000 and could be secured as previously discussed. Mr. Finkelstein said if there was a consensus that the Board was interested, he would put together a developer’s agreement that would outline all the specifics. Mayor Broening stated that the project lacks specificity and Mr. Finkelstein said he was advised this was a workshop and that specifics were not necessary. Also, Mayor Broening said consideration needs to be given on how to acquire the Relax Inn. Conceptually, Mayor Broening stated the project fits in with what the City wants to do. Mr. Finkelstein said there are funds in the 20/20 Visions process that could be redirected to purchase the Relax Inn. Mr. Finkelstein said he would like to see the $1 million earmarked for the City Club taken and used to purchase the Relax Inn to keep the work in the core redevelopment area. Vice Mayor Tillman reminded the audience that tonight is a workshop and there won’t be any action taken this evening. Vice Mayor Tillman said that the City is not in the business of becoming landlords and it is important to make sure that things are done in a more direct way. At the same time concepts need to become more concrete and better defined before anything can be put in writing. 4 MEETING MINUTES COMMUNITY REDEVELOPMENT AENCY BOYNTON BEACH, FLORIDA MAY 5, 1999 Mr. Jed Denahan stated it is time for the City to move forward and even though the ribbon cutting for the Marina Project took place, nothing has happened to date. He also stated that it is up to this Board to move forward. Mayor Broening said he did not know how a private investor could come into the City and invest tens of millions of dollars without the City taking some kind of risk. Mayor Broening said there is not much to show in terms of private development and noted that the City could receive 100% assurance that something will be successful. Mayor Broening said he would like the City to be able to be involved in the process of defining the City’s risk. Mayor Broening said he did not want the City to turn away a good idea simply because there are impediments and said good ideas need to be nurtured and should not be turned away. Mayor Broening said he would like a consensus tonight that the Board has the ability to work with someone to get a good project completed. Mr. Finkelstein said that when phase 1 is completed and put back on the tax rolls after reassessment, it would bring $70,000 back in TIP funds. Mr. Finkelstein said that 12 banks have turned him down, since the banks don’t like the area, they don’t like the occupancy and the banks don’t see anything happening in the City. Mayor Broening also felt that the citizens don’t see anything happening and are loosing confidence in the City. Mayor Broening said something needs to be done. Mr. Black inquired if the Board could request tonight that Mr. Finkelstein furnish them with the specifics so that it can be presented at the next CRA meeting in order that a decision could be made. Mr. Black said that things must start somewhere and he thought Mr. Finkelstein presented a good project. Mayor Broening inquired if any other concepts like Mr. Finkelstein’s have been presented and was informed there were none. Mr. Hawkins said that other projects might follow. Mr. Finkelstein said he is ready to proceed if the City is. Commissioner Weiland also liked the project and liked the concept that the back end of the plaza opened up to the lagoon and creates a large place for people to congregate. Commissioner Weiland said that the Relax Inn needs to be acquired since it is necessary for the promenade. Commissioner Weiland also said he has concerns about the long-term leases and the project could begin with phase 1, but if the remainder of the project doesn’t get completed, phase 1 won’t offer that much since the congregation area would not be available. Commissioner Weiland would like assurances that the entire project would be completed within three to five years. Mr. Finkelstein said his project is a market-driven development. If the market is not there, the rest of the project 5 MEETING MINUTES COMMUNITY REDEVELOPMENT AENCY BOYNTON BEACH, FLORIDA MAY 5, 1999 won’t happen. However, Mr. Finkelstein thinks the market is there and he has had inquiries from national tenants. Mr. Hawkins stated that having a good development agreement could minimize the risks. Also, a market study could be taken to determine what the market might be to sustain this type of development. Commissioner Weiland felt that the Marina Project and Mr. Finkelstein’s project would be a great success if it were done right. Mayor Broening said the Board was in consensus that when the particulars are received, the Board would be ready to make a decision. Mr. Finkelstein inquired if the Board wished for him to bring this back to the June meeting, or did they wish to review the particulars prior to the next meeting. Mr. Hawkins said that the consensus is that the Board likes the project and wants Mr. Finkelstein to come back, Mr. Finkelstein would have to start working with staff to talk about numbers, the development agreement and how to make the project work. Commissioner Weiland inquired about the time period. Mr. Hawkins said that staff needs time to look at more financial information about the project and Mr. Finkelstein has already met with the planning staff to discuss the design of the project. Mr. Hawkins said that Mr. Finkelstein is far enough along in his project that it could be brought back to the Board next month. Mr. Brian Edwards asked Mr. Finkelstein if he had a follow-up plan if the Commission did not go along with his project. Mr. Finkelstein said he plans to purchase the property and part of his agreement with the bank is that he could sign the month-to-month tenants on long-term leases. Mr. Finkelstein said he would lease the property to make it an income producing property. Ms. Melody Green asked when Mr. Finkelstein expected the special event area to be completed and Mr. Finkelstein said it would probably be in two to three years. B. Gateway Intracoastal Destination Park B.I.K. Enterprises, Inc. Mr. Bulent Kastarlak took the podium to address the Commission and the audience. Mr. Kastarlak stated that the project he is about to present could only come to fruition if the City reverses its decision to build the Intracoastal Park. Mr. Kastarlak said that the City of Boynton Beach was at the end of the totem pole when it comes to the tourism 6 MEETING MINUTES COMMUNITY REDEVELOPMENT AENCY BOYNTON BEACH, FLORIDA MAY 5, 1999 economy of southern Florida and no one has heard of Boynton Beach. Mr. Kastarlak feels that Boynton Beach can become a tourist attraction and that he has the expertise to accomplish this. Mr. Kastarlak said he is the President of B.I.K. Enterprises, Inc., a Florida venture company engaged in international trade, technology, tourism and real estate development. Mr. Kastarlak said he had with him the consent of Mr. Peter Gondolfo, owner of Wahoo’s Restaurant, if the concept can move forward, Mr. Gondolfo would be willing to sell his property to Mr. Kastarlak’s group. Secondly, Mr. Kastarlak said he is speaking on behalf of a group of a national investment and development company, which he is unable to disclose at this time. Mr. Kastarlak stated that this national company does business in the billions and their minimum project level is $100,000,000. Mr. Kastarlak said he would like to discuss the Gateway destination Intracoastal Park and explained what a destination is. Mr. Kastarlak had a consultant’s study completed in 1970 by himself together with Harvard University and the study proves that attractions drive the tourism economy. Mr. Kastarlak displayed a map and pointed out various attractions in Massachusetts, as well as a national map of attractions. Mr. Kastarlak said he has served as a consultant for over 30 years to 40-45 different municipalities, state agencies, counties, and states. Mr. Kastarlak said he has traveled to 35 countries and worked as a consultant in 17 of those countries. Mr. Kastarlak pointed out that no economic studies have ever been done in Boynton Beach. Mr. Kastarlak said there is no more manufacturing, but tourism, service industries and retail are the driving force behind the economy. Mr. Kastarlak read the definition of a “destination”. Mr. Kastarlak said he has considered two destination locations in Boynton Beach. One was downtown and the other is north on U.S. 1 where the current 10-acre park will be located, next to Wahoo’s three acres. Mr. Kastarlak said that the Park Department came up with a plan for the Intracoastal Park as a passive recreation. However, Mr. Kastarlak said this is not a destination. This particular park would utilize approximately 60% for a paved parking space with a lake and a trail that goes around the park. The City Club would also be located at the park, together with some shelters. Mr. Kastarlak said these activities have already been envisioned in the promenade area and the retention pond. The retention pond also will have a park and the entire downtown would be a destination point where concerts and art festivals can take place. Mr. Kastarlak said this area could draw 10,000 people at any given time. Mr. Kastarlak said that this area offers the exact same attractions as the Intracoastal Park would offer. 7 MEETING MINUTES COMMUNITY REDEVELOPMENT AENCY BOYNTON BEACH, FLORIDA MAY 5, 1999 Mr. Kastarlak presented an aerial photograph of the proposed 10-acre park site and Mr. Gondolfo’s 3.25-acre property. Mr. Kastarlak project would be offered to the City as a partnership, and would require no funds from the City. Mr. Kastarlak pointed out on the plan the proposed facilities for this property as follows: ? 5-acre area would be zoned C-3 which would allow a 130-room hotel, a conference center, restaurant, a parking garage (to keep the surface area free of paving); ? 1.95 acres would be used for a recreation and entertainment center; ? 2.98 acres would be used for townhouses and condominiums; and ? 3.27 acres for common areas. The entire area would be open to the public, except for the residential condominiums. Twenty-five percent of the entire property would be dedicated as common areas for the public. Mr. Kastarlak said the hotel would be three stories high and 45’ in height, which is allowed in C-3 zoning. A one-story restaurant would contain approximately 385 seats and would be approximately 25’ in height. The conference center would consist of 12,600 feet, which could accommodate approximately 600 people, and would be one story and 25’ in height. The parking garage would accommodate 500 cars and would not exceed 45’. Mr. Kastarlak said that this part of the project would take up about 40% of the entire 13 acres and pointed out the location of the buildings on the plan. There would be a recreation and entertainment center for everyone, not just children. It would contain approximately 80,000 square feet and would be three stories high. The residential aspect would contain 30 units. They would be two-story condominiums or rental units, 45’ in height. The marina would contain 100 slips. Mr. Kastarlak said he envisions the entertainment center to be educational, scientific and would include mind- expanding type experiences, which would be an asset for the community and would assist in the education of the children. Mr. Kastarlak pointed out the two access avenues that would lead all the way to the waterfront and anyone coming to the area would have access to the waterfront. The waterfront would be 720’ long and approximately 60’ wide. The entire waterfront could be a location for power walking, jogging, etc. There would be picnic shelters, fountains, lockers for the marina and a monument to the men who served this country. There would also be approximately 65 ground-level parking spaces directly next to the waterfront. Mr. Kastarlak said that his project offers more area for outside activities, than the passive park and there would be parking for 622 vehicles. 8 MEETING MINUTES COMMUNITY REDEVELOPMENT AENCY BOYNTON BEACH, FLORIDA MAY 5, 1999 Mr. Kastarlak said that the benefits of his project would be: ? A major economic generator of new jobs and revenues to the City; ? A landmark complex of high quality buildings of art and architecture; ? An independent recreational facility to serve the City exclusively, without the County; (The County is trying to use the City land to put more facilities for the County’s use.) ? 24-hour access for the public; ? Longer trails and sidewalks; ? Landscaping/ vegetation; ? Large waterfront. Mr. Kastarlak said the cost of the total package that he has presented, including the acquisition cost of Wahoo’s on the Wharf, would be approximately $47 million. With that kind of investment, the revenue potential would be enormous. According to his research, the recreation center alone could generate between $200 to $1,000 per square foot in gross revenue every year and the center contains 80,000 square feet. If the agreement with the City contains a lease of the land, the City would keep the land, and the City would get rent from the lease. Also, the City could possibly become a shareholder and could benefit from the net proceeds of the restaurant, hotel and the entertainment center. Mr. Kastarlak said that this project would create jobs. During construction it is estimated that approximately 200 permanent jobs would be created over a two-year period with a payroll of approximately $9.6 million. After construction, for permanent employment, there would be a minimum of 65 to 70 jobs created and this would generate an income of over $1.5 million per year. Also besides receiving rent, the City would get the commercial tax rates and this taxable revenue would exceed $320,000 per year. This would be in addition to the lease and possibly a percentage of the revenues. Mr. Kastarlak said this project would have a “ripple affect” upon the City in terms of employment and income. Mr. Kastarlak said he is not asking for any concessions at this point, but is simply offering the City an opportunity to develop these destinations. Mr. Kastarlak said he prepared and submitted to the City Manager a Project Planning and Control System on how to organize the City. Mr. Kastarlak said he never heard from the City Manager on this. The document sets forth how to organize the City and there are procedures and organizations that are available to the City. In anticipation of the projects, three planners, one urban designer, one transportation planner, one urban planner, one civil engineer, one economist and one financial expert have been added to staff. Mr. Kastarlak understood that some of these positions have already been filled. Also, Mr. Kastarlak said he has one prospect that has expressed an interest in the Marina Project 9 MEETING MINUTES COMMUNITY REDEVELOPMENT AENCY BOYNTON BEACH, FLORIDA MAY 5, 1999 and conceivably the projects could be combined. Mr. Kastarlak said he would be glad to answer any questions. Mr. Black said the project was impressive and that it looks more like private development and the citizens of Boynton Beach who don’t own a boat would have no reason to go there. Mr. Black was under the impression that when making Boynton Beach a destination, it would not all be at one location, but would encompass the entire City. Mr. Kastarlak said that the synergy of tourism requires that a person can walk from one place to another within a reasonable time. If it takes too long to go from one place to another within the City, it was not worth it. By putting all this in one location, they feed into one another and that is the importance of the entertainment/recreation center. The design of the building itself could become an experience, such as a crystal place. Mr. Oyer said that he and his family have lived here for several generations and he can see the pattern of economic development that is followed along the water. Mr. Oyer said that one of the first things that bring in people of substance was boating facilities. Mr. Oyer said that the taxpayers voted to buy the land and in prior cases, the City has sold itself out to the County. Mr. Oyer said we should look more for what the City can do for Boynton Beach, instead of having a partnership with the County Commission. Mr. Oyer said it is important to have a partnership with private industry, but at the same time to make sure that there are safeguards to ensure public access. Mr. Oyer said there needs to be more emphasis on docking of larger boats. Mr. Oyer would like to see a yacht club. Also, Mr. Oyer said the hotel should be larger and the number of condominiums could be reduced. Mr. Kastarlak noted that residential development is not an attraction. Residential developments consume city services, etc. The purpose of the residential portion of his project is that people who travel to the destination may want to stay close to it and that is the purpose of the condominium. Commissioner Denahan applauded Mr. Kastarlak on his very thorough presentation. Commissioner Denahan said that Boynton Beach doesn’t have enough access to the water and questioned whether the quality of life in Boynton Beach would be increased by the ripple effect because of a revenue source that could possibly be located in Quantum Park as opposed to the waterfront property. Commissioner Denahan felt that the Boynton Beach Promenade from I-95 to the Intracoastal already gives Boynton Beach a special niche. Commissioner Denahan said that the residents that live here also want access to this property; more than just a pedestrian walkway and more than just a park bench by the water. 10 MEETING MINUTES COMMUNITY REDEVELOPMENT AENCY BOYNTON BEACH, FLORIDA MAY 5, 1999 Mr. Kastarlak said that location is what real estate is all about and that Quantum Park has sat idle for 10 years and no business benefits have come out of that location. Mr. Kastarlak said they were doing the wrong type of marketing to get people into Quantum Park. Mr. Kastarlak said that water is a great attraction, especially in Florida and his project does not deny any access to the public to the waterfront. Mr. Kastarlak said his project has more waterfront than the passive park project. Mr. Black agreed with Commissioner Denahan that the quality of life is an issue for everybody in Boynton Beach and in 1988 the residents voted for a bond referendum of $10 million to make this area a park. Mr. Black said that at the Commission meeting last night Commissioner Tillman stated that because the Commission now has two or three new members, this does not mean that everything they did and say was “last year’s Commission”. Mr. Black said a plan was adopted to build a park and now this Commission wants to change it around. Mayor Broening said he did not think that the best use for this land has been addressed publicly in a long time. Mayor Broening said he had the two Ordinances, which authorized the bond issue and there is not one word in the Ordinances about a park. Secondly, Mayor Broening said that the previous Commission did not vote to make it a park. There was a meeting, at which one Commission member was absent, and there was consensus to move ahead with the park and some engineering was started. Mayor Broening said there was never a vote on the project. Mayor Broening said this piece of land is the one remaining jewel for development left in the City of Boynton Beach and thinks there needs to be some discussion. Mayor Broening said he did not want to see 80 trailers parked on the most valuable piece of land in Boynton Beach because the County wants to give us money. Mr. Ron Washam said that input is needed from the people and that during the election the citizens made it known what they wanted to do with this property. Mayor Broening wants everyone to have the benefit of what might be available in terms of jobs, improving our tax base and this would greatly affect the CRA. A gentleman in the audience stated that in another decade all of southern Florida from Miami to Vero Beach will be one and would be like Southern California. This has to be accepted and the City must move forward. He also said that respect should be given to developers who want to come in and better our community and that you cannot satisfy 100% of the people. Mr. Mike Fitzpatrick stated that he has been in Boynton Beach four and one-half decades and there used to be a lot more green space. Mr. Fitzpatrick said he would like a place where he can live and look at the Intracoastal and doesn’t have to look 11 MEETING MINUTES COMMUNITY REDEVELOPMENT AENCY BOYNTON BEACH, FLORIDA MAY 5, 1999 through buildings. Mr. Fitzpatrick suggested taking some older area within the City for development as opposed to the last open space in the City for more buildings. Mr. Kastarlak said it is anticipated that 2 million people will be coming to South Florida in the next ten years. Mr. Kastarlak stated that projects of this type would bring people east of I-95 to develop more residential areas. Mr. Kastarlak did not think that the City Club was necessary and the City would be saving $1 million because the hotel facilities would be available to the citizens. Mr. Fenton asked if a height adjustment was made to the hotel and it was made higher, would Mr. Kastarlak consider giving more to recreational space. Mr. Kastarlak said he would be agreeable, but did not think that much space would be made available. Commissioner Weiland thought that the park was a “done deal” and now he sees two streets with a waterfront area. Commissioner Weiland envisions this becoming a private entity and most people in Boynton Beach would not recognize the area as a place to go. Commissioner Weiland also asked if more green space could be added to the project. Mr. Kastarlak said he was trying to comply with the zoning code for C-3 zoning and it is conceivable that the hotel could be made higher. In conclusion, Mr. Kastarlak said he was present tonight to present an opportunity to the Board and feels his project is doable and the funds are in place. MAYOR BROENING DECLARED A RECESS AT 8:20 P.M. THE MEETING RECONVENED AT 8:30 P.M. IV. APPROVAL OF MINUTES – APRIL 26, 1999 Motion Vice Mayor Tillman moved to approve the minutes of the April 26, 1999 meeting. Motion seconded by Commissioner Denahan and unanimously carried. V. UNFINISHED BUSINESS A. Staff Presentation on Proposed City Club at Intracoastal Park Interim City Manager Hawkins stated that Ms. Melody Green, Recreation Superintendent and John Wildner, Parks Superintendent would be presenting some facts about the proposed City Club building. 12 MEETING MINUTES COMMUNITY REDEVELOPMENT AENCY BOYNTON BEACH, FLORIDA MAY 5, 1999 Mr. Wildner took the podium and said he would explain the existing plan, which the Board has looked at previously. Therefore, a complete presentation of the park plan would not be necessary, but he would review the plan to answer some concerns that have been voiced over the last couple of weeks. Mr. Wildner said he would speak about the outdoor aspects of the plan and Ms. Green would speak about the City Club and recreational programming. Mr. Wildner informed the Board that the Intracoastal Park site was purchased with a bond issue, but there was no funding in place for development of the park at the time the land was acquired. Interim City Manager Hawkins requested that the presentation proceed directly to the City Club issue since all the Board members are familiar with the park itself. Mr. Wildner said that the City Club would be located in the northeast corner of the park site and would be adjacent to the Intracoastal Waterway. The Club would be a 7,000 square foot facility and would be a replacement for the Royal Palm Clubhouse, which will be demolished because of the enlargement of Gateway Boulevard. The City Club would be built in conjunction with a two-story picnic facility and an open area patio with boardwalk decking and paver bricks to allow use by the public at all times. Mr. Wildner said there would be a great deal of passive recreation available and there would be complete access to the Intracoastal Waterway. There would be sail boarding and canoeing. Mr. Wildner stated that Ms. Green would address the Board on the interior of the City Club. Ms. Green said she would like to address the concerns of the Chamber of Commerce. The first question raised was how much space of the waterfront the City Club would obscure. Ms. Green said the City Club is 7,000 square feet and would only take up 1.5% of park space. It would be approximately 330 feet of the entire length of the waterfront. Ms. Green said that City Club would be replacing Royal Palm Clubhouse, which is currently used by 42 groups and organizations, and is scheduled to be demolished within three to six months. This would displace 2,100 people. Ms. Green said it could be at any location, but some type of meeting space needs to be provided for the 2,100 people being displaced. Commissioner Denahan inquired if 2,100 people monthly used the space and Ms. Green stated it was monthly. Currently there are meetings and bridge taking place. Ms. Green said the Royal Palm Clubhouse operates seven days a week from 8:00 a.m. to 12 midnight. Ms. Green said they are not able to accommodate all the clubs and organizations that want to use the Royal Palm Clubhouse after 5:00 p.m. because of lack of space. 13 MEETING MINUTES COMMUNITY REDEVELOPMENT AENCY BOYNTON BEACH, FLORIDA MAY 5, 1999 Another concern was if City Club would compete with private enterprise. Ms. Green said City Club would replace the meeting space for non-profit groups at Royal Palm Clubhouse. Most of these groups could not afford to go to a hotel or upscale facility like Benvenuto’s for their weekly meetings. Also, it was asked if the City Club would impact the location of a future Civic Center close to City Hall. Ms. Green said the Civic Center has a very active recreation programming use and is used from Monday through Saturday and sometimes Sunday. The function of the Civic Center is to provide recreational activities and it is not a meeting place. Ms. Green did not think that the City Club would impact private enterprise since non-profit groups and organizations use the Royal Palm Clubhouse. Ms. Green stated that whenever the City has needed dining/catering functions for meetings and special activities, it has had to pay for it from private enterprise. Also, Interim City Manager Hawkins stated that the new City Club would have modern technology built in such as overhead projectors to allow for Power Point presentations from a computer for use by outside organizations, as well as the City. Interim City Manager Hawkins said there is a difference between a true meeting facility and an entertainment space. Mr. Fisher inquired why the City Club could not be placed elsewhere on the property so that the Intracoastal view would not be blocked. However, Mr. Fisher stated that the club couldn’t be moved because of the Johnson Sea grass. Interim City Manager Hawkins noted that the other issue raised is all the space being made available to accommodate the overflow parking for Boat Club Park. Mr. Oyer said that the location of the Clubhouse was not important, but only that it would be available. Mr. Oyer did not want to ruin this valuable piece of land. Mr. Oyer suggested going over to the boat ramp and put a building on that space as far west as possible and make a parking lot that would not allow trailers to provide for the people of Boynton Beach. Mr. Oyer said the County should come up with its own additional parking. Mr. Kastarlak stated Mr. Oyer’s suggestion was an excellent suggestion. Mr. Kastarlak said the first suggested location for the City Club was at the boat landing area and he designed the first floor plan for the building. Mr. Kastarlak said there is space available at the boat landing and the building would fit nicely. However, at some point it was decided to move the City Club to the Intracoastal Park site. A gentleman in the audience asked why it was necessary to build a 7,000 square foot building to replace a 1,400 square foot building. Ms. Green said a significant number of 14 MEETING MINUTES COMMUNITY REDEVELOPMENT AENCY BOYNTON BEACH, FLORIDA MAY 5, 1999 groups have requested to use the City’s facilities, not just the Royal Palm Clubhouse. It was also asked if Lucille and Otley’s could be used to accommodate these groups. Interim City Manager Hawkins said that Lucille and Otley’s is a senior center facility and it will not be a recreation/meeting facility. Interim City Manager Hawkins stated that the purpose of most senior centers is to provide necessary services and programs and mixing other programs with that space could cause conflicts. Ms. Green said that not only would recreational services be provided for the seniors, but also health, fitness and social services. It is anticipated that this Center would be programmed night and day. A woman in the audience inquired why the Royal Palm Clubhouse was being torn down and Ms. Green replied because of the expansion of Gateway Boulevard. She also asked if the non-profit organizations that use the Royal Palm Clubhouse pay for its use. Ms. Green said they pay a nominal fee of either $25 or $50 per year, which in fact means the City is providing a service for non-profit organizations. Mayor Broening inquired about the vacant old high school and Mr. Hawkins said it would cost approximately $5 million to bring the building up to code. It would cost $300,000 to raze the building. Mr. Edwards recalled at the last Neighborhood Summit Meeting that former Mayor Taylor walked into the meeting and announced that the CRA had approved the park concept. Mr. Edwards said the park should be built as originally intended and the City needs a place for residents to bring their children to enjoy some scenery. Mr. Edwards said the money should go downtown. Mr. Edwards said the City already has a community center and the money could be used to enlarge that facility. Ms. Sara Williams noted that the Martin Luther King corridor does not have any place to meet and that she holds a monthly forum at the Bible Church of God because there is no clubhouse available like other developments. Also, Ms. Williams said people in the south end of the City are also looking for meeting space. Ms. Williams said that meeting space should be considered in the City’s redevelopment plans and that instead of building one big building, several smaller buildings could be built in different areas to accommodate everyone’s needs. Interim City Manager noted that there is a need for space and where the space goes will be up to the community. Mr. Hawkins thanked Ms. Green for her presentation. Ms. Shabotynskyj asked if this would be an agenda item in the future. Ms. Shabotynskyj said she would like an opportunity to make their presentation again. Mayor Broening agreed that it needs to be addressed again. 15 MEETING MINUTES COMMUNITY REDEVELOPMENT AENCY BOYNTON BEACH, FLORIDA MAY 5, 1999 B. Update on Progress Trail Ms. Shabotynskyj, President of the Chamber of Commerce said that the Progress Trail was her idea and when it was presented at a City Commission/Chamber workshop last fall, it was suggested that the Chamber collaborate with the City staff and to develop the idea. The idea was to take the City’s redevelopment, use a progress trail concept and market the redevelopment through a progress trail. Ms. Shabotynskyj said a progress trail is similar to a fitness trail, but instead of stopping to do exercises, you would stop and learn about the progress of Boynton Beach, project by project. There have been meetings since November and Ms. Shabotynskyj is on the Marketing and Communication Team, from which the Progress Trail Team originated. The Progress Trail Team consists of about 13 people, four of whom are City staff members and Ms. Virginia Farace and Ms. Shabotynskyj are leading the effort. A number of people from the private sector have been brought in to work on the project and considerable progress has been made. The components of a progress trail have been identified, which is basically a station consisting of a kiosk. On the kiosk would be a storyboard that would give a person the concept of what the finished product would look like, the cost, the architect, the general contractor, the time line and any other pertinent information. There would be a brochure available about the entire Progress Trail and there would be an up-date sheet about this particular project. Comment cards would be available. Seven locations for the Progress Trail have been identified: 1. 1913 Museum 2. The Ocean Avenue Promenade (Scully’s Block) 3. Bob Katz’s oldest house and the redevelopment 4. The 500 Block of Ocean Avenue, which would include Harvey Oyer, Bob Katz and Chris Francois 5. The DOT Bridge Project 6. The Marina Project 7. The Port Promenade, which is another name for the extension of Boynton Beach Boulevard. Mr. Shabotynskyj showed a prototype of the kiosk to the Board and the audience and said they anticipate having the first kiosk placed in front of the 1913 Schoolhouse stth between June 1 and June 15. Brochures will be prepared which would be ready by July 15th. The remainder of the kiosks should be displayed between August and September. 16 MEETING MINUTES COMMUNITY REDEVELOPMENT AENCY BOYNTON BEACH, FLORIDA MAY 5, 1999 Ms. Shabotynskyj said that a public/private partnership has been organized to market the redevelopment through the promotion of a Progress Trail. The cost of the kiosk would be between $1,800/2,000 each. A sponsor for one of the kiosks has been located, together with a sponsor for the design and publishing of the Progress Trail Brochures. A volunteer has been recruited to work on the map design and a manufacture of the signs has been secured. The life of the kiosk is anticipated at two years and after that the kiosks could be used elsewhere in the City. On top of the kiosk would be a sign that would encompass the themes and colors identified in the Visions 20/20 Plan, such as a Compass Rose. Also, if the kiosk were off the street, there would be notification on how to get to that particular station. Ms. Shabotynskyj said they are asking the CRA to support the Progress Trail Plan and to identify and give direction on the funding of its components. Ms. Shabotynskyj stated that the City’s Building Department is going to cover the expense of the permits and fees, which is approximately $250. American Recycled Plastic has sponsored the first kiosk. Funding for seven stations would be approximately $14,000. The Chamber could sell the sponsorships for $2,000 and the Chamber would act as the go-between. Also, the City and CRA funds could partially or totally fund the kiosks. Also, the Chamber is seeking direction on the marketing of the Progress Trail and the Chamber anticipates a kick-off event, which is estimated at $1,000. There would be mailing expenses of $500 and an advertising campaign estimated at $1,000 per month. The Chamber would also like the CRA to appoint a point person to monitor the Progress Trail and to keep the CRA informed. This could be staff and/or a member of the CRA Board. The question was asked which private companies are putting money into the Progress Trail and Ms. Shabotynskyj stated the Palm Beach Post is doing the brochures and the Sun Sentinel will do something, but it hasn’t been identified yet. Mr. Wische asked how much total funds the Chamber would need from the City. Ms. Shabotynskyj said it depended on what the CRA wanted to fund. If the CRA funded everything, the cost would be $14,000 for the kiosks and $24,000 for the advertising campaign for two years. Mr. Wische asked which portion would the Chamber be contributing and Ms. Shabotynskyj said they have not identified any expense, as they have been providing professional services, volunteers and resources. It was determined that approximately $39,000 would be the total expense. Commissioner Weiland suggested that park benches and buses could have advertisements on them. 17 MEETING MINUTES COMMUNITY REDEVELOPMENT AENCY BOYNTON BEACH, FLORIDA MAY 5, 1999 Mayor Broening liked the idea and said they needed an opportunity to review the funding requests. Mr. Hawkins liked the sponsorship idea as the first approach to the funding. Mr. Hawkins said that a group of small businesses could chip in to purchase a kiosk. Mr. Hawkins said the CRA could be a back up to make up any shortfall. Mayor Broening noted that the marketing expenses are long term. Commissioner Denahan said that the Visions 20/20 Plan specifically earmarked funds for marketing and thought it was in the vicinity of $35,000 per year. Mr. Hawkins said that this would be the first marketing strategy. Commissioner Denahan said she did not see this funding listed in any of the figures and Mr. Hawkins said it has never been included in the current budget. Mr. Hawkins noted that the Visions 20/20 Plan identified marketing as an important component and gave a recommendation of the necessary funding. Commissioner Denahan said she would like to see the Progress Trail become successful and would like the Commission to strongly back up this effort. Ms. Sara Williams asked how the projects were selected. Ms. Williams said she has heard no plans for the more undesirable areas of the City. Ms. Shabotynskyj stated that all the development is in one area, which is the core redevelopment area and the CRA has not identified any projects outside that area. Ms. Shabotynskyj said that other projects were discussed, but it was felt these projects could get most easily started and that the Progress Trail is a walking trail. Commissioner Denahan stated the Progress Trail would be around two miles and it would be difficult to spread it too far out. Commissioner Sherman requested that Ms. Shabotynskyj bring back to the CRA a break down of the total cost so that the City could determine how much it wanted to contribute. Ms. Shabotynskyj felt it was the City’s job to determine how much they wanted to market the redevelopment. Ms. Shabotynskyj stated that out of the total of $39,5000, the Chamber could possibly match 50% from the private sector. Mayor Broening said he could support the concept wholeheartedly and noted that there needs to be some marketing and this appears to be a viable way to do some of the marketing. Ms. Shabotynskyj requested that the CRA Board take this to the City Commission at their next regular meeting and have some kind of formal action because st the Chamber would like to have the first kiosk in place by June 1. Also, Ms. Shabotynskyj would like to have a point person in place either from staff or the CRA Board to participate in the Progress Trail. 18 MEETING MINUTES COMMUNITY REDEVELOPMENT AENCY BOYNTON BEACH, FLORIDA MAY 5, 1999 Commissioner Weiland inquired if other alternatives were looked at and thought $2,000 was a lot of money for a plastic kiosk. Ms. Shabotynskyj said there are other alternatives, but they did not have the shelf life and the Chamber thinks this is the best way to go. Commissioner Denahan said she would be in agreement to support the project at 50% funding by the City. Also, the Chamber would have to be asked to be the intermediary and Commissioner Denahan asked for a consensus from the Board that this be placed on the agenda. Mayor Broening asked if anyone else in the audience wished to speak. Mr. Scully said he had concerns regarding some of the information from the last meeting that Ocean Avenue would be closed down for a certain amount of months. Mr. Scully said he did not want to have to move his business. Mayor Broening said that a city couldn’t be redesigned without having construction and disruption. Mayor Broening did not think it would be a long time for the disruption of Mr. Scully’s business. Mayor Broening noted that the store would be inconvenienced, but felt most of Scully’s customers would continue to come to his store. A woman in the audience asked if both sides of the road would be closed and Mr. Hawkins said it is possible that the entire road could be closed at the same time. Mr. Hawkins did not have a time line and it is possible it could be 18 months. Commissioner Weiland stated that access to the property would not be denied. Vice Mayor Tillman said that signs could be placed on the adjoining roads to bring the customers in. Mr. Scully said he could not make it because he would not be able to accommodate the lunch crowd. Mr. Hawkins said everything would be done to limit the negative impact on Mr. Scully’s business and Mayor Broening stated that everything would be done to facilitate entrance to Mr. Scully’s property. Mr. Scully said that the County has invested a great deal of money in his business and if he doesn’t make it, nine people will be out of jobs. Mayor Broening also said that the City would do whatever it can to encourage people to support the businesses that are being affected by the redevelopment. Mr. Kastarlak said that if the City establishes the proper project planning and control, it would be known in advance the schedule, cost and all other ramifications before the project ever starts. Mr. Kastarlak felt this particular project should not take more than six months to complete. 19 MEETING MINUTES COMMUNITY REDEVELOPMENT AENCY BOYNTON BEACH, FLORIDA MAY 5, 1999 Interim City Manager Hawkins said the City is doing this project totally in the open. There is a project team that would be developing a construction schedule and the final design will be brought back to the people. People on that street will know what is going on from the start to finish and will be involved in the process. Mayor Broening stated that the Commission is very sympathetic to the business owners on the street. Ms. Williams asked if there are plans for the redevelopment of the Martin Luther King quarter and asked if the City plans to purchase the property on the north side of MLK Blvd. for the Utilities and Public Works Departments. Mayor Broening stated the City is committed to doing the infrastructure improvements and for redevelopment of most of the properties, they will have to rely on private industry. Mayor Broening said that the City has to show that it has done something successful with a private developer with the downtown section in order to attract business to do other projects. Ms. Williams said that this area continues to be passed over and something needs to be done to provide peaceful living in this area. Ms. Williams questioned the method of spending the $500,000 in community block grant funds. Mr. Edwards said that the MLK community needs to initiate a partnership with the City in order to be able to spend some of the money. Mr. Edwards said that more money has been spent on that community than any other community. Mr. Edwards said there must be a community initiative and people need to take ownership for their own problems. Mr. Fitzpatrick said he purchased a lot for $33,000 and has $30,000 in cash and has a great credit rating, but cannot borrow $127,000 and can’t get a loan because the property is in a “bad place”. Mr. Fitzpatrick said the property is 300 yards from City Hall. Mr. Fitzpatrick would like to know what direction this neighborhood is going and the City should help residents who are trying to overbuild the area. Also, Mr. Fitzpatrick stated the building permit fees are $7,408. It was noted that this includes county impact fees and other fees. Vice Mayor Tillman said that two major issues came up tonight that need to be addressed. Besides the rezoning and variance issues, the City needs to set aside some funds to be available when projects come up. The City has revenue sources and the City should put some challenge grants into the budget in order to move forward and allow citizens to come in and ask for assistance in an organized way. VII. NEW BUSINESS A. DATE FOR NEXT MEETING; WEDNESDAY, JUNE, 1999 20 MEETING MINUTES COMMUNITY REDEVELOPMENT AENCY BOYNTON BEACH, FLORIDA MAY 5, 1999 VII. OTHER None VIII. PUBLIC AUDIENCE IX. ADJOURNMENT Mayor Broening thanked everyone for attending this evening. There being no further business, the meeting properly adjourned at 9:45 p.m. Respectfully submitted, ________________________________ Barbara M. Madden Recording Secretary (three tapes) 21