Loading...
Minutes 10-14-08 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD ON TUESDAY, OCTOBER 14, 2008, AT 6:30 P.M. IN CITY COMMISSION CHAMBERS, BOYNTON BEACH, FLORIDA PRESENT: Jerry Taylor, Chair Jose Rodriguez, Vice Chair Woodrow Hay Marlene Ross Ron Weiland Lisa Bright, Executive Director James Cherof, Board Attorney I. Call to Order Chair Taylor called the meeting to order at 6:30 p.m. II. Pledge to the Flag and Invocation Mr. Hay gave the invocation and Ms. Ross led 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 B. Adoption of Agenda Motion Mr. Hay moved to approve the agenda. Ms. Ross seconded the motion that unanimously passed. V. Announcements & Awards: None. VI. Consent Agenda: A. Approval of Minutes - eRA Board Meeting - September 2, 2008 Mr. Weiland pulled Item A. 1 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 B. Approval of the Financial Report Period-Ended September 30, 2008 C. Approval of Commercial Fa<;ade Grant to Monnin Properties in the amount of $15,000 with an Exception to Program Guidelines Mr. Weiland pulled Item C. D. Wavier of First Right of Refusal - Sasha Lagano - HAP Program Mr. Weiland pulled Item B. Motion Mr. Hay moved to approve the Consent Agenda less the items pulled. Mr. Weiland seconded the motion that unanimously passed. VIII. Pulled Consent Agenda Items: Heard out of order A. Approval of Minutes - CRA Board Meeting - September 2, 2008 Mr. Weiland noted on the September 2, 2008 Meeting Minutes on page 4 there was discussion of the Noise Ordinance. The motion should show Mr. Weiland dissenting, not Mr. Hay. Motion Mr. Weiland moved to approve Item A of the Consent Agenda with the changes as noted. Ms. Ross seconded the motion that unanimously passed. C. Approval of Commercial Fa<;ade Grant to Monnin Properties in the amount of $15,000 with an Exception to Program Guidelines Mr. Weiland explained Commercial Fa<;ade Grants are for exterior improvements. The applicant was seeking to make interior improvements to a warehouse in order to attract tenants. Warehouses are not built out and tenants move in and interior improvements are made to their specifications. Approving this application would set a precedent and should be denied. Other members of the Board agreed and there was mention if the members wanted to have a separate program for interior renovations, they could, but the current request should not be approved. Motion Vice Chair Rodriguez moved to deny. Mr. Weiland seconded the motion that unanimously passed. 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 D. Wavier of First Right of Refusal- Sasha Lagano - HAP Program Mr. Weiland explained he did not think the CRA would want to buy this back from Ms. Lagano at the present time. He explained there were still many empty units available that were brand new. Her unit was not sold and the lien was not being removed. Once the unit sold, the monies would be paid back. Motion Mr. Weiland moved to not exercise the first right of refusal (motion to approve). Vice Chair Rodriguez seconded the motion that unanimously passed. VII. Information Only A. CRA Policing Activity Report for the Month of August, 2008 and District Statistics for the Months of August and September, 2008 Vice Chair Rodriguez inquired about a deliverable due two months ago from Chief Immler. Sgt. DeGiulio explained he believed clearance rates on specific crimes were what was being referred to and clarified property crimes, compared to personal crimes, had clearance rates. He was unaware of how those rates were formulated and he suggested the Chief be contacted. Vice Chair Rodriguez requested Ms. Bright follow up to obtain those statistics. B. Boynton Beach CRA and Trolley Website Updates C. INCA Newsletter D. Minutes of the Boynton Beach Arts Commission Meeting on August 26, 2008 E. Update on Boynton Beach Faith-Based CDC Development of 3 Homes on Sea crest. Mr. Hay inquired if the Boynton Beach Faith-Based Community Development Corporation and R. M. Lee were still a part of the project. Ms. Brooks responded the Boynton Beach Faith-Based Community Development Corporation currently owned the homes and had contracts on all three homes. In December of 2006, they entered into a purchaser Developer Agreement and it took over a year for the homes to be constructed. The developer did not meet the performance standards, but not necessarily through their fault. They originally had three applicants who fell out of the program and they currently had three applicants. Ms. Brooks explained it was questionable whether individuals could make it through the mortgage lending process in the current environment. The sales price of the unit was 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 $207,000 for a two-story unit and the one-story unit was just under $200,000. The City had rezoned the area and to avoid a lawsuit, the CRA bought the land at the commercial appraised value. The Community Development Corporation and CRA did what they were going to with the exception of the Community Development Corporation closing on the properties. The Developer's Agreement was not amended. Ms. Brooks explained they had received updated time lines and they had difficulties getting their construction loan from L1SC (Local Initiative Support Corporation). They did catch up; however, but missed the last few deadlines to get the applicants in the homes. She also explained the appraised value of the home changed. Mr. Hay advised there was a meeting at the Sims Center the next evening regarding homebuyer counseling and he reported the Community Development Corporation was not aware of it. Jeff Wooster, 828 South Road, explained they were putting on a homebuyer seminar to market the last three homes they built. In July, the CRA approved their eight-home project in the Heart of Boynton. There were five homes under contract and four would be completed November 15, 2008. The seminar was to sell the last three homes. He advised they cooperate with the Community Development Corporation, but they were not exclusive to them. F. Marina Operations Mr. Weiland announced during the update and slip improvements process, one long- standing slip owner may lose his slip and it was within the Board's purview to determine what changes to make concerning the renovations. Mr. Weiland explained the issue was crucial for individuals who have a livelihood there, and he further explained if they are moved 15 slips away, they may lose business. In this instance, a slip would be eliminated leaving the owner with just his slip with Steve Skaggs from Two Georges. The slip owner needed electric and he did not understand why they could not run electric to that slip when they were running it to the 23 other slips. Ms. Brooks explained there has not been a boat in that slip and it never had electric, but they could be connected to it. The conceptual plans showed a boat in the slip, and a gangplank which they currently do not have on the bulkhead. The goal, when buying the marina, was always to preserve the business. Most boat owners live in Boynton Beach. The Sea Mist owned submerged lands there and has discussed with the CRA moving their pilings to the edge of their property, which would move the pilings north. This would possibly make it cumbersome for the slip owner to enter the slip. She explained they crafted an addendum to the lease regarding the matter because moving the pilings was not within their purview. The slip's current configuration may change because they need a gangplank to get to the slips. Ms. Brooks reported they were trying to make it better for the slip owners. 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 There was discussion the plans showed three smaller boats there at $450 a slip. Ms. Brooks clarified the conceptual plan was for a day "tie-up", similar to what Two Georges offered. Ms. Brooks explained even with the new gangplank, the slip owner, Paul Fasolo, owner of the Hammertime boat, could still maneuver into the slip. Captain Paul Fasolo, owner of a charter boat called Hammertime, slip owner at the CRA Marina, 1405 SW 25th Avenue, was present. Ms. Bright clarified he rents a space for his advertising sign which was over slip number one. Mr. Fasolo explained about three years ago, he was renting a slip by the CRA. He was approached by the Fire Marshall indicating the type of electric being provided was not up to Code and he was not supposed to be using electric for his slip. From that time forward, he rented from Steve Skaggs but he continued to pay for the slip because he built his business there and he has been there about 11 years. He explained more recently, he was feeling he was being pushed out of the way. He explained he signed the lease with the CRA but there were so many restrictive items in the lease that it makes him uncomfortable. He explained the lease is not user-friendly. Ms. Brooks confirmed the current boat could fit in the space and the design was conceptual. She clarified the lease was the one the Board approved. The members had made the policy decision to have one-year leases knowing individuals would be moving around. The electric was an issue on that slip and they were still hooked up to Two Georges because they carved off a piece of property the Skaggs family owned. At the time, to separate the electric required digging up the road, which cost the CRA $60,000. They had a grant from the County and would pursue a different design. The CRA was a public entity but the marina had no restrooms, trash or electric. Their goal was to change that and the conceptual plan included those upgrades. Mr. Fasolo's slip was restrictive because it was angled between two bigger boats. Mr. Fasolo wanted the slip because he liked the exposure of it and he ultimately wanted to have two boats. He reported he paid a considerable amount more to keep his boat at the Skaggs property than at the CRA's marina. The exposure at Two Georges was 10 times better and had all the amenities compared to the CRA slip. The issue was he was promised electric for two years and it was his understanding electric could easily be run there. He did not understand the delay. Ms. Bright explained the Board and the City Commission had to approve the Marina conceptual plan. The issue was the cost of the plan was $5,900,000, and they currently only had $2,000.0000. They were trying to approve the slip renovation plan. Vice Chair Rodriguez explained they were trying to improve the marina and he extended his apologies to Mr. Fasolo. He explained they have a master plan and the slips would have all the amenities they needed. He also explained the CRA had been paying Two Georges about $10,000 per year for public amenities and trash without a contractual agreement. He also thought the amount was not commensurate with the 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 actual use. Attorney Cherof confirmed there had not been a written document prepared. Mr. Hay agreed the amount was high. The calculations determining how the payment was calculated was in the meeting materials. Vice Chair Rodriguez believed most individuals using the restrooms were patrons. Chair Taylor thought Two Georges would not have any objections to entering into a written agreement. There was consensus to put together a written document. G. Reimbursement from Fireworks by Grucci Chair Taylor explained at the last Fourth of July Celebration, after the performance started there was an accident on the barge. There was a 25-minute delay before the fireworks started again and the CRA requested compensation for the disturbance. It was noted Grucci refunded $4,500. H. CRA Vendor List Vice Chair Rodriguez explained this item pertained to an email regarding utilizing Boynton Beach businesses. He thanked staff for the information and noted 25% of the vendors used were from the City. He encouraged staff to increase that number. D. Public Comments: (Note: comments are limited to 3 minutes in duration) Sherry Johnson, Community Caring Center, and Sister Joan Carusillo, Women's Circle, both located at 145 NE 4th Avenue, were present. Ms. Johnson requested clarification regarding the $200,000 the CRA gave them to find a new location, which they did. She acknowledged the budget adjustments made by the CRA and advised the Community Caring Center could not proceed with the sale of their building. She explained the intent, when the funds were given, was to facilitate the Women's Circle, the Community Caring Center and Boynton Beach PATCH. The funds would satisfy the space needs for all three organizations. She explained if the Women's Circle could move, it would allow for space for the other remaining two organizations. She explained there had been dialogue the CRA may not be around in the future and the funds would move to the City. She inquired what would happen to the money if that occurred. Chair Taylor explained the CRA would be around for a long time, and it was his understanding they had made an offer to purchase the building, but they were not interested in selling. Ms. Johnson clarified it was a choice of one or the other. 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 Ms. Brooks explained the CRA indicated they could use the funds to help pay for their present location, and they could remain there indefinitely for $10 per year. Chair Taylor explained they were going to give $600,000 but were told that amount was not needed. Ms. Johnson explained that was because they believed the CRA would purchase the building and she was not aware those funds were included in the $600,000. If the City purchased the building for them, they would only need the $200,000. She explained they still needed more space. They had a contract, which would have given them two buildings and would have provided them with almost 7,000 feet of space. Had they sold the building and then been given the $200,000, they could have moved forward with the purchase. Ms. Bright explained there was a request from the Green Market to give a total of $600,000 for various options they needed. One part of the request was for $200,000 from rollover funds the Board promised. The final $200,000 was for gap funding. Ms. Brooks explained they had a budget for the purchase of the new building. Ms. Johnson believed they would have received funding from Addie Greene, Chair of the Palm Beach County Board of County Commissioners, but the funds did not materialize. She asked if there were other rollover funds they could use to make up the loss of funds they anticipated receiving from Addie Greene. She explained the property owners were willing to provide a second mortgage if the CRA did not have the funds, and they still could have structured the deal. Ms. Bright explained the item was in the budget agenda package and the Board did not support it. Instead, they maintained the original $200,000, which was a rollover from fiscal year 2007, would be the appropriate amount. The analysis included the value of the current property at closer to $250,000. Staff approached Ms. Johnson prior to the September 2, 2008 final budget hearing to ascertain if they would be interested in the CRA purchasing the current property and offering them a long-term lease. At the time, staff was informed they were not interested in the lease and they had secured property in industrial. She explained staff would need to know what and when they would want to do something with the $200,000. Ms. Bright explained the $200,000 was still in the budget; however, they needed $250,000, plus $200,000 to relocate. Ms. Johnson confirmed that as correct. She explained there had been ongoing dialogue with the CRA to sell their building to them. When they gave the Community Caring Center the money, they knew they would sell the building to the CRA and the Community Caring Center would receive the $200,000. They sent an email to draft the contracts on the sale of the property, and submitted a request for additional rollover funds. The response was there were no additional funds. Chair Taylor indicated his recollection was the request was for $600,000 and at the meeting when the item was discussed, they were advised the Community Caring Center 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 did not need all those funds, and they were working a deal and buying another place, so the CRA set aside $200,000 and then reallocated the rest of the funds. Ms. Johnson explained she did not understand that the amount included the purchase of the property. She thought the discussion about buying the property was budgeted. The $600,000 originally requested included the property, or she would have asked for $400,000. The Women's Circle did not have another place identified; they just need more space. Ms. Johnson explained they could go back to the other deal if the CRA had the funds to do both the purchase and the $200,000, If they did not, they wanted the Women's Circle to use all the money. However, if there was no more CRA next year, and the money went to the City, they did not want to lose the funding or lose the sale of the property. Chair Taylor explained they only had the $200,000. He indicated he always believed they needed a larger facility and if the Women's Circle moved out, it would only yield a little more space. He explained he was aware the quarters were cramped. Sister Carusillo explained the Women's Circle would be happy to use $100,000 to move. The area they were using was 11 feet by 13 feet for 10 to 15 women to use three to four times per week. She explained they had some money saved, about a third of what it would cost them to move and another $100,000 would help enormously. She explained they were investigating properties, but they could not make an offer because they did not have the funds. They were unsure about the $200,000 and had to get that clarified first, and then they could possibly make an offer and continue to fundraise. Ms. Brooks clarified they were looking for a $100,000 donation, which they could use to move. Chair Taylor explained the Board would have to decide. Ms. Brooks explained they would assist with leasing, which might help. Chair Taylor requesting bringing forward a proposal. Ms. Ross inquired if there was an increase in enrollment. Sister Carusillo responded there was. Jeremy Skolnik, 6311 Francis Street, Jupiter, had a pending contract at the Preserve, which he signed in August of last year. He had spoken with Michael Simon, CRA Board Development Manager, who indicated he was not approved for the Homeowners Assistance Plan because their income was too high. His dilemma was the Cornerstone Group would not accept the letter from Mr. Simon indicating he was not eligible for assistance. He was looking for direction whether his application would be approved or denied. It had been 14 months since he started the process and he was not able to obtain his refund. Ms. Brooks explained the issue was a contract issue between the applicant and the Cornerstone Group. His request was formally denied, which should be sufficient for the 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 developer to return the deposit and release him from the contract, which had not occurred. Mr. Skolnik had been advised by the developer that Mr. Simon did not understand the income limits of the program and Cornerstone would not accept the letter. Ms. Brooks explained Mr. Simon has worked with the City of Delray Beach SHIP plan for five or six years and was well aware of the income guidelines. She explained Cornerstone had wanted to increase the income limits to 140% of the median household income and the Board denied the request. She explained Cornerstone should return the deposit based on the fact that he did not qualify for the subsidy. This was not the first time the Board has heard of this type of issue. She explained some developers in this economic climate are not on the up and up. She recommended getting an attorney. Mr. Skolnik explained Cornerstone had advised him the median household income levels would be increased in February. Ms. Bright responded the CRA had no desire to revisit the issue, which was originally heard in September, 2008. Ms. Brooks explained they advised Ms. Mades of Cornerstone of the decision made to not raise the limit. Ms. Brooks and Mr. Simon would provide documentation for Mr. Skolnik to give to his attorney, based on Cornerstone's refusal to cancel the contract and refund his deposit. Mr. Weiland inquired if there was any way the CRA could require, when applicants are deemed ineligible for grants or assistance, that they receive a refund. Ms. Brooks explained that was included in the contract. She explained Cornerstone was making it very difficult for buyers to get their money back if they did not qualify for the subsidy. The CRA had no authority in a contract between the developer and the applicant. Ms. Bright corrected the record. The matter was originally heard on August 12, 2008, and was on the agenda as "Consideration of Request by the Cornerstone Group to amend the Homebuyers Assistance Program to 140% of AMI." The motion was made by Mr. Hay to deny the request. Mr. Weiland seconded the motion that was passed unanimously. Mr. Skolnik had previously provided those minutes to Cornerstone, and it did not change the outcome. Chair Taylor explained Cornerstone benefitted by the City working with them in the process and he inquired if the CRA could apply any pressure or influence on Cornerstone that if Cornerstone continued to conduct business in that manner, they would discontinue the agreements. He thought it was without conscience to treat the applicants in that manner. 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 Legal counsel will draft a letter to be signed by the Chair to the above comments. E. Public Hearing: Old Business: New Business: F. Old Business: A. Recommendation to City Commission - Conceptual Approval of Seacrest Blvd. Redesign Mr. Hay inquired what the objective was in changing the design of the road. Ms. Brooks explained the project began under the former Director. The goal for the future redevelopment of the Heart of Boynton, at that time, was to develop the area into a more residential area. It always was residential with a bit of commercial, but there was a lot of vacant land. They bifurcated a neighborhood type road into a five-lane highway in a residential neighborhood and Ms. Brooks advised there was no rationale for it. She explained the traffic counts did not justify the road being five lanes. She explained there were two elementary schools along the roadway and many school children crossing the street. She explained in the interest of safety and beautification, the CRA wanted to redesign the road and have a more diverse income population in the area. She explained the road had good proximity to Bethesda, City Hall and 1-95 and they wanted to make the area a neighborhood of choice. In 2005, the CRA started working on the issue, but the prior director proceeded incorrectly and the designs had to be redone. They had issued an RFQ for the project which is a County road. Ms. Brooks explained they were told initially there was no support for the reduction in lanes. Kimley Horn was selected to do the work and they proceeded with five lanes. Later, it was suggested the roadway be reduced. Since the traffic counts were low, the County agreed The County requires an amendment to their Comprehensive Plan, which can be amended twice a year. Ms. Brooks explained this was a concept to narrow the road, not a design plan, but they needed to get into the County's process. Ms. Ross explained there was a safety issue involved and cars were speeding by. Vice Chair Rodriguez explained he would like to see the concept applied all the way down the road and not stop at Boynton Beach Boulevard. He thought it should extend to the south end of Seacrest through Woolbright to the hospital area. Ms. Brooks explained the City could piggyback on the contract with Kimley Horn to continue the process in the City, and they would not be increasing the traffic 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 significantly. They would only be putting back what was there. It was noted the Ocean Breeze project would not impact the traffic counts. Mr. Hay also indicated the road was a safety issue. Ongoing traffic is required to stop for school buses because there was no median on the road. Ms. Brooks responded they had a concept of a median, where pedestrians could stop and they had a concept for a better crossway by Poinciana School as well. These concepts would be brought back to the Board. Chair Taylor supported the project 100% and advised residents have complained to him for years about the speeding and safety concerns. He agreed with Vice Chair Rodriguez and would like to see the improvements continued. This would be a good start and would upgrade the neighborhood. Ms. Bright advised this item would be placed on the City Commission agenda by the City Manager. Vice Chair Rodriguez indicated that he would like to amend the item and see the continuation of the improvements within the City south of Boynton Beach Boulevard to Woolbright as they approved the motion. Ms. Brooks explained if the City Commission did that, it would require traffic counts and there was no time for them to be conducted and still meet the County's time frame. She recommended moving forward with just the one piece. The project could be done in phases. Vice Chair Rodriguez left the dais at 7:48 p.m. Mr. Hay inquired if there were any objections from going to four lanes to two and why the CRA changed their mind. Ms. Brooks responded she had been told by the former director that no one supported going to fewer lanes. Vice Chair Rodriguez returned at 7:49 p.m. Ms. Brooks did not know who the former director received that information from. She explained she had been involved in narrowing a roadway in West Palm Beach and it added immense value to the neighborhood. Mr. Hay explained in West Palm on some roadways that had been narrowed, they became an eyesore. He explained if the project were undertaken, then they must do what was necessary to keep it up. Marwan Mufleh, Project Manager with Kimley Horn and Associates, explained their traffic engineers did a preliminary study. They met with the County to review the figures, and the impact and distribution of traffic when the road was narrowed. The traffic counts were acceptable to the County and it was indicated they supported going forward with the amendment to the Comprehensive Plan. 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 On another matter, Ms. Bright publicly thanked Jeff Livergood, Director of Public Works and Engineering, regarding Federal Highway. She explained the CRA had taken a lot of grief regarding the corridor and she announced the landscaping on the corridor was breathtaking from border to border. She hoped the bids for Seacrest and MLK would look just as good. Mr. Livergood thanked the Board and advised they spent a lot of time with various homeowners associations. As it pertained to Seacrest, he explained the Board was considering changing the design elements on Seacrest, north of Boynton Beach Boulevard to the C-16 Canal. That would change the design parameters and what they wanted to do along the entire corridor. It had been suggested the area south of Boynton Beach Boulevard to Woolbright be improved and he thought it would be a second step. He recommended working with the County on the element north of Boynton Beach Boulevard, and obtaining their approval on the design features and concept. Then in the coming months, the City could work with Kimley Horn to develop the design scenarios and the City could then determine how to fund it. Mr. Hay inquired about the traffic circles. Mr. Livergood explained they wanted the diameter to be large allowing for a clear understanding of the assignment of rights-of- way. They did not want individuals going the wrong way, and they wanted easy slip in and out movements. A good size traffic circle would also provide a good focal point for landscaping in the middle of it. Vice Chair Rodriguez left the dais at 7:52 p.m. Motion Mr. Hay moved to approve the conceptual approval of Seacrest Boulevard redesign. Ms. Ross seconded the motion that passed 4-0. (Vice Chair Rodriguez was not present for the vote.) B. Consideration of Approval of Second Amendment to Work Order No. 1 with Kimley-Horn for Seacrest Blvd. Redesign in the amount of $51 ,600 Motion Mr. Weiland moved to approve. Ms. Ross seconded the motion that passed 4-0. (Vice Chair Rodriguez was not present for the vote.) C. Consideration of Approval of Work Order No. 08-0171 with MSCW, Inc. to Prepare the Request for Proposal to Solicit Construction Bids from Contractors for the Slip Renovation Project Mike Simon, Development Manager, explained they were working on developing the slip renovations with MSCW, who is the design consultant under continuing contract 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 with the CRA. The firm was also doing the conceptual Boynton Harbor Marina Redevelopment Plan, and they were working on the slip renovation conceptual plans. The CRA wanted to begin the process to go out for contractor proposals. In order to write the document, technical knowledge in the field of engineering, design and construction management of marine projects was needed. There was a time element involved because they would be receiving approvals of final renovation drawings to be sent with the proposals. Vice Chair Rodriguez returned to the dais at 7:55 p.m. Mr. Weiland inquired if there was any way the CRA could be more user-friendly on the walkway and if there were any other options to minimize the space needed. Mr. Simon explained they would take the notes from the meeting and try to develop alternatives, while still meeting Codes. Vice Chair Rodriguez inquired about using the Master Plan to go out for bids. Mr. Simon explained the Master Plan looked at enhancements conceptually, and not the slip renovation dimension, numbers, and electric. From this point forward, they would have images drawn. The Master Plan was also done by MSCW. Ms. Brooks explained conceptual plans were images and vendors cannot bid on conceptual plans. They were entering the construction part of the project. MSCW is being asked to prepare, under their continuing contract, the RFP to bid on the submerged land portion of the project. There are a number of permitting agencies involved and staff does not have the technical or permitting expertise, so they were asked to write the technical aspects of the RFP for the slip renovation project only. Simultaneously, the final drawings and concepts for that portion of that specific construction project in the water, not upland of the bulkhead, will also occur. The members would have final approval of the final slip design before it would be put out for bid with the RFP. Vice Chair Rodriguez inquired if they would have someone else do an RFP for the remainder of the marina project. Ms. Brooks explained when they have the ability to pay for that portion of the project, they would contract with them to design the construction drawings that would be permitted. Ms. Brooks explained the reason they wanted to proceed in this way was because there was hurricane damage to the pilings. Next month, the Board would be asked to approve the final drawings for the area above the bulkhead and the members would see the final drawings before they issue the RFP. Mr. Simon explained the Legal Department would be involved in the matter. If the Board members opted not to go to RFP, they have the option of choosing one of the three contractors they have under continuing contract. There were three general contracting firms that could bid against one another. Vice Chair Rodriguez thought they could give it to one of the general contractors and avoid the expense. 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 Ms. Brooks explained if the members wanted to go out to RFP, they need help crafting the RFP. If not, then MSCW would not be needed. Based on the final drawings, a vendor would provide a price. Discussion turned to using one of the three continuing vendors. It was noted they would not know which vendor to use and that the vendors should bid against one another. Ms. Brooks responded the vendors would then have to bid against the RFP and there were permitting issues involved. There are technical issues they may not be aware of. Proceeding in the manner they were recommending was common practice. One issue was they were trying not to interrupt business or traffic. Vice Chair Rodriguez suggested having a workshop instead of the RFP to present their detailed requirements. The project was also being paid for by the County. Attorney Cherof explained the expectation of spending the money to draft the RFP and go through the competitive process would save the same amount of money because there would be a larger pool of firms to choose from. Mr. Simon explained this was not a small project to just have a single company selected. The three firms were selected for their expertise and one of the three may be more marine oriented. The time frame between the approval of the drawings and approval of the RFP and bid was approximately eight weeks. Mr. Simon anticipated those approvals would occur in January or February at the latest. Motion Mr. Weiland moved to approve Work Order No. 08-0171 with MSCW, Inc. to prepare the RFP to solicit construction bids from contractors for the Slip Renovation Project, and to include a larger group of applicants above and beyond the three listed. It was noted this was Option 2. Ms. Ross seconded the motion that unanimously passed. D. Consideration of Approval of Addendum to Work Order No. 07-0124 with MSCW, Inc. to Provide Construction Administration Services Relating to the Slip Renovation Project at the CRA's Boynton Harbor Marina Mr. Simon explained the item was an amendment to the original work order under the continuing contract with the CRA. That work order was specifically to handle the conceptual marina redevelopment plans and not to provide any other services after the plan was developed. In working with them, he felt it would be a cost advantage of $18,000 for construction administrative services by MSeW. The services to be provided included field reports; act as liaison between the contractor and the CRA; weekly status reports; and provide a photographic record of construction. 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 There was discussion about who would be liable if they were challenged. Attorney Cherof explained both entities may have liability. Mr. Simon explained the vendor was aware of that possibility. There would be a separate work order and they would be required to have a different type of contractual requirement. A detailed list of their duties was contained in the Scope of Services in the meeting materials. Some of the tasks involved would be covered by the permitting process, but not all because not all items require a permit and those items would not be inspected. Vice Chair Rodriguez thought the construction manager should inspect those items and the item was not needed. Ms. Brooks explained with the Promenade project, there were four different permit levels required and the CRA paid someone to monitor all of them. Motion Ms. Ross moved approval of the addendum to Work Order No. 07-0124 with MSCW, to provide construction administration services relating to the slip renovation project at the CRA's Boynton Harbor Marina. Mr. Hay seconded the motion that passed 4-1 (Vice Chair Rodriguez dissenting.) E. Consideration of Options on Contract with American Realty - Ocean Breeze Ms. Brooks explained staff was previously directed to bring back options regarding the contract with American Realty. Staff contacted the second respondent, the Carlisle Group, and received no response. One of the issues regarding the project was funding. Since then, staff met with various entities for funding for the buyers assistance side of the project. She advised $100,000 from the CRAWLS (Constrained Roadway at Lower Level of Service) funds could be used for homebuyer's assistance for the project. The City received $2,900,000 from the Housing and Urban Development Division that could also be used. The Rule Committee for the Florida Housing Finance Agency for the rental portion was holding workshops. Ms. Bright would attend to advocate for a rule change for any projects within CRA districts. If the redevelopment districts do not have a grocery store, they miss out on funding. They recently met with brokers representing a national discount grocery chain who was very interested in putting a store in the MLK area. If they do not get the rule change, they may have the opportunity to have the grocery store help the Auburn and Ocean Breeze Projects. They have the funds to begin construction and some funding for down payment assistance for buyers. The project is nearly ready to go on the west side. The east side rental portion needs a grocery store or a rule change from the Florida Housing Finance Agency. Ms. Brooks advised they were pursuing both concurrently, and since they have many of the items 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 they need for the west side, they should pursue moving forward with that portion of the project. A contract addendum for the land on the west side indicates American Realty will purchase the land for $600,000 from the CRA and the CRA would use those funds to create an allocation of down payment assistance through the HAP program for those homes. The transaction would, in essence, be a wash. Frank Chirkinian, American Realty Development, explained they would acquire each lot with their cash which would be deposited into an escrow account. The monies then become the Homebuyers Assistance Plan funds. They were recycling the funds. The housing prices were reduced to about $175,000 and the CRA would control the land until each unit was sold and built. Even though the prices of the homes were lower, there was still a large gap between the income of the applicants and the amount of mortgage they would qualify for. That aspect of a home purchase transaction was the main issue of affordable housing. The income levels in the City were low. Ms. Bright explained there was a transition of leadership, and with the Cornerstone Group, many people became aware of the subsidies available to homeowners. Prior to the Strand decision, under the former Board, they had entered into a development agreement to subsidize a developer. She explained this addendum was typical when both the builder and the buyer needed assistance. The amount needed was estimated to be between $800,000 and $1,000,000. Chair Taylor estimated the funds coming in to assist were about $400,000 from the City's allocation of HUD funds, and $100,000 from CRAWLS leaving about a $500,000 deficit over the course of two-to-three years. Mr. Weiland discussed the CRAWLS funding, and inquired about the allocation of $650,000. Kurt Bressner, City Manager, explained he put together a report to the City Commission earlier in the day. In July 2007, the City Commission adopted a resolution for the use of funds. The resolution provided for gap funding, financing purchase assistance loan program, rehab and rehab deferred loan program, disaster mitigation recovery and land acquisition. The Development Department put together a list of funds spent. There was approximately $100,000 of funds remaining. If the CRA wanted to request those funds, the resolution may need to be amended or an official request made. He explained the request would be a good use of the funds. Vice Chair Rodriguez explained he did not understand, with the subsidy given, how the homeowner could maintain the home given their income. Ms. Brooks responded if a quality home was constructed, it can be maintained. She explained this was a policy 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 decision for the Board. She explained there were options and she suggested moving forward and having legal counsel for both sides work out an agreement. Mr. Chirkinian clarified under the agreement, they were not acquiring the property until they sold the unit. They were investing their time and money and if they do not sell a home, they do not get the land. It was also a project that could ignite redevelopment. He also advised the homeowners would have a low homeowners association fee. Discussion about qualifying for a home and the income of the applicants ensued. It was hoped the applicants would not be qualified with the bare minimum. Ms. Brooks explained there would be some control over the program and assurance given that the units could not be flipped. Mr. Chirkinian explained they were looking for an addendum to be approved. They would be acquiring the land, closing and then getting the HAP funds. Attorney Cherof explained he reviewed the document and there were some minor issues. He recommended approving the document subject to the Legal Department's comments. Option 2 was discussed and staff believed it was a better option. The time frame to identify and close on the properties was within 36 months. The developer would close on the property first, and then develop it. There was performance language in the contract indicating they had to notify the CRA every 120 days regarding the number of units they would close on. Ms. Brooks suggested adding language regarding performance deliverables, a non-performance clause and site plan approval. There were no objections from Mr. Chirkinian to the suggestion provided they used reasonable benchmarks. Motion Vice Chair Rodriguez moved consideration of the American Realty Contract with the additions of performance criteria and with the Attorney's recommendations based on his review. Ms. Ross seconded the motion that unanimously passed. F. Update on SE Federal Hwy. Corridor Water Main, Storm Water & Roadway Improvement Project (4th Street Utility Project) Ms. Brooks advised the SE 4th Street project began in 2006 as a utility project. The CRA and the City then thought they could expand the project to include more streetscape. Mr. Weiland left the dais at 8:53 p.m. Originally, the CRA wanted overhead utilities underground, sidewalks, landscaping and traffic calming elements. In 2006, they could not have the utilities installed underground based on the cost, and the project would just include sidewalks, landscaping and a 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 median down the middle. The project did not go out to bid since the Board entered into the interlocal agreement in 2006. At the CRA budget workshop, there was discussion on funding the project and whether the project was the same and still merits CRA funding. Ms. Brooks was looking for direction whether the Board wanted to proceed with the streetscape elements at this time. Chris Roschek, Utilities Department, was present and reviewed the PowerPoint presentation. Mr. Weiland returned to the dais at 8:56 p.m. Mr. Hay left the dais at 8:56 p.m. Mr. Roschek presented a list of cost options associated with the improvements. Presently, there were wood power poles existing close to the pavement. One option was to delay the construction until the economy improved. The second option was to install Phase I of the reclaimed water line. This portion along SE 4th Street was a connector piece. There was grant funding from the South Florida Water Management District in the amount of $245,000 which was a 40% matching grant and there would be no funding from the CRA for that option. The Utilities Department was suggesting they bear the full cost of the project and the CRA not incur any cost for that option. Ms. Ross left the dais at 8:57 p.m. Ms. Bright explained they hope to receive a $300,000 grant from Commissioner McCarty that was available this year and next, and she advised the Board deferred approximately $823,000 to 2010 which was encumbered. The third option was to install reclaimed and potable water lines only. The potable watermains were important for fire flow. It was suggested the CRA's portion would be 50% of the potable water line costs to support the needs for fire flow and support redevelopment of the area. The cost for that option was about $600,000. Mr. Hay returned to the dais at 8:59 p.m. The next option included reclaimed and potable water improvements, and road, sidewalk, curb and median improvements. This would encompass a conduit for future lighting in the median. The Utilities Department has already secured funding from the Lake Worth Lagoon Partnership Program and a Palm Beach Environmental Resources Management Grant totaling $750,000 to be applied to Stormwater Management Construction work that would have to be completed by the year 2010. Another option included street lighting which could be maintained by either the City or the eRA, and still another option pertained to the center median landscaping. 18 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 The final option included the relocation of the wood power poles to behind the right-of- way and to exchange the poles from wood to concrete. He reported the burying of the power lines was cost prohibitive. Ms. Ross returned at 9:02 p.m. Discussion followed about the concrete poles and the ground being open. Ms. Bright explained the rule of thumb was the cost is about $1,000,000 per mile. Mr. Weiland requested a cost comparison. Mr. Livergood explained one of the driving factors of the program was to add lighting and place the electrical lines under the ground. It was recognized it was cost prohibitive and it was thought a decision needed to be made where they wanted to spend the funds or what streetscape elements would be used to enhance the appearance of the area. They would have to plan ahead and put ductwork underground so if in the future they should install electric underground, it would provide for less inconvenience. Chair Taylor thought the storm drainage needed to be improved, sanitary sewer improvements and a reclaimed water line was needed. As to the potable water and fire flow for development, he did not see any development within the next few years. He explained much of the installation appeared to be tasks the City would normally do. He questioned why the CRA was involved in the issue at all. Mr. Bressner explained this would be the time to build the capacity for the anticipated increase in density for the area, in anticipation of the market turning around. He advised the work should be done to prepare for redevelopment of the area and it would be fairly dense in population and in intensity of use. Presently, there is a 15 inch main. Vice Chair Rodriguez requested the options be identified by priority. These were identified as the reclaimed water and the backbone for the potable watermain. Mr. Roschek explained in order to get the drainage to work, there would be reconstruction of the roadway. Lori LaVerriere, Assistant City Manager, explained Option 4 was cumulative and included all the elements that Mr. Bressner mentioned which was stormwater, sewer, potable water, sidewalks, reclaimed water, medians, and conduits for future lighting which were important and what was currently on the slate to be done. She clarified the medians were not improved medians and that was what the CRA's portion would accomplish along with the City funding. They were looking for direction about what other amenities they were looking for in terms of enhanced landscaping, medians, lighting and other items where additional costs to the CRA would come in. Ms. Bright clarified if the Board opted for Option 4, the road would be torn up. She asked if there was anything else they wanted to commit to because if they added anything later, the road would be torn up. Mr. Livergood clarified lighting, power lines 19 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 and service connections to the utilities would require some excavation, but not major road construction. Ms. LaVerriere explained if they would add the conduits to it, the Board would be selecting Option 5. The median lights would be an additional $500,000, and it would allow the Utilities Department to eliminate the fixtures on the road edge, not necessarily eliminate the poles. A discussion followed whether the extras were appropriate at this time. Ms. Ross explained, compared to Seacrest and how behind they were on the road project, which was a priority, it was difficult to envision. Mr. Weiland explained by the time development occurred in that area, the light poles would need to be painted and replaced. Ms. Bright explained the CRA would pass the cost on to the developer and it would be part of an incentive in the future. Ms. LaVerriere explained they were looking for close to $1,000,000 in grant funding and if they walked away from it, they would lose the funding. Another element added for consideration was whether they wanted to extend the project from 2nd Avenue to Ocean Avenue. The underground work would stop and the work would be more aboveground improvements. The estimated cost would be about $300,000, which was Option 8. Under this option, the aboveground improvements would be extended, primarily on the west side of the road. Mr. Livergood explained if they stopped the improvements at 2nd Avenue, they would still have capacity. With the underground utilities, they would not need to go to Ocean Avenue. If they did the aboveground utilities, should they improve the roadway from 12th Street to 2nd, they could leave the last two blocks for the developer to complete, knowing the developer would have some significant underground work that they may need to do in the 4th Street right-of-way. If the City knew the project was coming next year, they would recommend stopping at 2nd Avenue. Since they did not know when that would occur, they have many decisions to make. The Board needed to ponder what they wanted the road to look like and what they think it would be in two-to-five years. There was going to be significant work done on 4th Street by the developer and they knew what the developer would do because of the site plans. If a different development comes forward, they may have different connection points to off-site utilities, but they could not ensure there would not be any excavation into a newly constructed road. The cost share of the improvements would need to be determined by the Board and City Commission. Mr. Weiland inquired about the project when it was discussed years ago and advised it could have been completed six years ago. He also expressed anything breaking ground would be about three-to-four years away. Mr. Bressner explained when they upgraded Ocean Avenue they stopped the improvements at the Childrens' Schoolhouse Museum because, at the time, they did not know what would happen with the Civic Center and the Old High School. The thought 20 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 was to leave the street alone and they extended it east to Federal Highway and to the bridge as they were waiting for that part of the downtown to be completed. In this instance, and from an aesthetic point of view, it made sense to do so, but they did not know the current version of the development plans approved for the Arches. They included some infrastructure in the 4th Street right-of-way, which was minimally invasive, but there still was work that had to be done. Aesthetically, it made sense to finish the project. The first portion of this project to bring the utilities to 2nd Avenue would allow for sufficient utility capacity for that whole area. Mr. Bressner preferred the CRA pay for the project on the tail end. They would have to use General Fund dollars to pay for it. The amount was $300,000 and the work would have to be done in the next fiscal year (2009/10.) He recognized the CRA was not in a position to pay the original $800,000 until that time. Susan Harris, Finance Director, explained the $823,000 allocated for the project in 2010, was moved forward to this year for the MLK Project. The Board only has $423,000 available in the fund balance and they would need to come up with another $400,000 in this year's or next year's budget. She explained in the next two years they would be in a deficit position due to their projects. Chair Taylor polled the members about splitting the $300,000. Vice Chair Rodriguez was in favor of the proposal to extend the project. Mr. Hay was in favor of splitting the $300,000 and extending the project. Ms. Ross was also in agreement. Mr. Weiland left the dais at 9:27 p.m. Motion Vice Chair Rodriguez moved to approve Option 8 and the Community Redevelopment Agency encumber $150,000 or half the cost. Mr. Weiland returned to the dais at 9:28 p.m. Motion Vice Chair Rodriguez moved to approve Option 4, plus Option 8 as an attachment, less the lights and the Community Redevelopment Agency encumber half the total cost for this project. Mr. Hay seconded the motion that passed 4-1 (Mr. Weiland dissenting.) G. Consideration of Proceeding with Sale of Liquor License Owned by the CRA Ms. Brooks presented the item and explained they purchased the first right of refusal to prevent a future adult use and they purchased the liquor license and wanted to put it on 21 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 the market. The State requires they activate the license by June 16, 2009. Staff wanted to put the license on the market and advised they could realize $90,000 to $150,000 from the sale, less any broker's fee if they used a broker to market it. The broker's fee is typically ten percent. Since this could take a long time, staff was recommending selecting the Prakas Group to sell the license, based on their experience. Motion Mr. Hay moved that the staff go with the Prakas Group because of their extensive experience in the South Florida Restaurant and Bar area (of expertise). Mr. Weiland seconded the motion that unanimously passed. There was brief discussion about the adult use license. Ms. Brooks explained that license was not transferrable off the property. Mr. Bressner explained when the City purchased Morey's, they sold the liquor license and burned the use license. H. Consideration of Approval of Master Development Agreement between the CRA and the Auburn Group for the MLK Corridor Ms. Bright explained, in order to move forward with the Master Development Agreement, staff was seeking policy direction from the board on several items she outlined. On July 10, 2007, the CRA Board directed staff to begin negotiations with the Auburn Development Group for the MLK Corridor. The project was brought forward and conceptually approved by the Board in June of 2008. Since then, the Strand decision was made, then reversed and then upheld. In addition, the Property Tax Reform caused a $1,500,000 deficit to the CRA budget, and the world capital market was still changing. Item 1. Term of the AQreement. Auburn proposed a 20-year term and staff recommended a 10-year term. Auburn indicated they could build the project within 12 years. Ms. Bright requested the term be changed to 12 years, and was comfortable with the change. Chair Taylor explained he had a concern with signing a 20 or 12 year contract because of what has transpired in the market. He was inclined to do the project in Phase I and if that worked well, then to proceed to Phase II. He recalled, initially, Auburn had indicated they could build the project with their own funding; however, the CRA would be providing $20,000,000 in Tax Increment Financing funds. It was his understanding an analysis was done for Phase I and the developer needed $200,000 to be made whole, but was, in fact, requesting $1,900,000 in the first phase. He advised the design has changed in height from three stories to six and seven stories and he thought the entire package needed to be reviewed. Mr. Weiland spoke about performance issues from phase to phase in the contract as well as penalties and he was opposed to the 20-year time frame. Phase IV would be 22 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 the phase the developer made his profit on. He pointed out to authorize Phases I and II, and the developer not have a guarantee Phase III would be developed would not be right especially when the developer would be providing a senior center and affordable housing. He explained down the road, another Board may not want to continue the project, and damages would have to be paid. Also, if the developer did not perform, there should be a non-performance clause and the CRA should be paid damages. It was unlikely the project would be profitable to the developer unless they had the density to do it, and that aspect made it unlikely the project would be only two or three stories. Vice Chair Rodriguez did not believe the public would purchase in the development unless the price was appropriate, and that was contingent on the density. Mr. Hay agreed with most of what Mr. Weiland discussed, but expressed it seemed unrealistic the developer would not make a profit on the first three phases. When the project was originally discussed, the Board did not want three-to-five stories and he thought further discussion was needed before the project would be developed to that extreme. Mr. Weiland explained the pro forma showed where the developer would make his profit, and if the developer did not build the project, the community would have nothing. Chair Taylor read a portion of the contract that indicated if Phase I did not move forward and the contract was ended by the CRA, then the developer was requesting overhead expenses be reimbursed. Additionally, the developer would seek liquidated damages in the amount of $5,000,000 if the CRA did not fund $13,000,000 for Phase IV. He indicated it was not known if they would have the money when they got to Phase IV. There was a developer's agreement listing an amount, and when the City received $2,900,000 for affordable housing from the Housing and Urban Development Division, the amount in the contract changed. Chair Taylor was not in favor of signing the agreement and indicated the CRA could go broke over the agreement. He preferred to have an agreement for Phase I. Ms. Bright explained Phase I would be the senior, tax credit residential building. The four-story product would originally be constructed on the City/CRA land. She was advised by the developer that they have 100% of the option contracts in the middle of the project area that comprised four acres and he was ready to move forward with that project. Cito Beguiristain responded to the comments and explained the height of the project has not changed for over a year; it was the same project approved on June 10th. The number of units, or subsidy requested had not changed but he did indicate they were considering single-family homes. He explained it was the same concept presented at the Sims Center. Mr. Weiland discussed one of the phases changed to seven or eight stories. Mr. Beguiristain explained nothing had changed in design but there was one change which 23 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 was that if the developer received funds from any other source, they would reduce, in equal amounts, the CRA's commitment. They improved the agreement. Mr. Berguiristain advised the term of the original agreement was 20 years because that was the maximum amount of time under the law that could be used. The intent was never to extend it for that length of time. The Ocean Breeze project took three years to build on three or four acres of land. His project was on 27 acres and had 697 units. The project would take longer and it would require competitive financing. The annual rental aspect of the project was an annual allocation, which would reduce the cost for the CRA on a per unit basis. If other funds were received from other sources it would reduce the CRA's commitment. Mr. Berguiristain explained the Auburn Group actively seeks additional funds. Item 2, Subsidy Amount Requested by Auburn. The main issue was financial verification of project costs was typically conducted by a third party. Mr. Berguiristain explained the CRA has the analysis. Ms. Bright explained they only had the pro forma for Phase I. Mr. Berguiristain responded he provided them to Ms. Harris when the Tax Increment Financing analysis was done. Ms. Brooks explained Phase /I was originally supposed to be multi-family townhomes and condominiums but would be single-family infill. She did not have a pro forma or operating agreement for anything other than Phase I. Mr. Berguiristain pointed out it was an exhibit to the agreement they were emailed earlier in the day and they were sent several times. He explained a pro forma for Phase" was unrealistic because they were still acquiring property. He agreed they added the possibility of single-family because, on the north side, where the CRA owned parcels, there were single-family homes that were new. He explained contingent on what happened in the market, single-family homes could be less burdensome in terms of coming up with down payment assistance. Ms. Brooks explained the purpose of the document was to help develop an agreement the Board could live with and they needed to know how much subsidy was reasonable. Mr. Berguiristain explained, compared to the Ocean Breeze project, Auburn leveraged the dollars much better. Ms. Brooks explained they still needed the numbers, and they needed to verify the amount of subsidy. She inquired why the numbers stayed the same in the agreement when the project changed. There was a calculation used to determine subsidies and in order to ascertain what was needed, information from the development, the operating pro forma, and the sources and uses was needed. Mr. Berguiristain presented the Board with the pro forma and provided them with all the contracts for Phase I. He clarified in Phase I, the developer would not receive any subsidy from the CRA above and beyond what was necessary to pay its developer fee. That provision was in the agreement and the worst case scenario would be a 1.2 debt coverage ratio. When Florida Housing underwrites the project, it is determined if the $1,900,000 was too much, the CRA did not have to provide that amount of money at 24 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 closing. They could give the CRA the money. He explained Phase II was not oversubsidized because the CRA was giving 25%, the same amount as Ocean Breeze. Phase I contained clauses to ensure oversubsidy did not occur. In Phase III, they were building the grocery store at no cost to the CRA in the retail area and giving it to them for one dollar. In Phase IV, if all three phases were delivered, they were building the parking garage, which was what they presented to the community. There was no negative response to the garage, which was located right on Federal Highway. Vice Chair Rodriguez inquired if the third party review could be done post approval. Attorney Cherof explained that was a business decision, but if it was done afterwards, the CRA could wind up chasing their funding. Susan Harris, Finance Director, explained they needed new numbers whenever there are changes and it changes the pro forma. Mr. Berguiristain suggested, in addition to the contract language in Phase I, that Auburn would only be subsidized to a certain amount based on debt coverage ratios. In Phases II, III and IV, there would be language that indicates that if it was determined by a third party that the developer came up with an unreasonable developer return in terms of profit on the project over a certain percentage, then Auburn would agree the amount would be reduced. That amount would be determined by a bank or third party analysis. Ms. Bright explained staff must be able to calculate some type of Tax Increment Financing based on the unit and product type and what portion of the Tax Increment Financing would cover future bonding. Mr. Berguiristain explained he could provide a revised pro forma showing a certain percentage of single-family homes for Tax Increment Financing calculation purposes. Item 3. Auburn's Request for a 163 Aqreement. This item pertained to the length of the agreement for future funding agreements. Mr. Berguiristain explained the term of the agreement was not unreasonable and the CRA was not bound to future funding commitments because the agreement was subject to year-to-year budget allocations. He inquired if Auburn purchased the entire 27 acres for the project and started investing, and the CRA decided not to continue the project, how Auburn would be made whole. Chair Taylor noted for the first three phases, they wanted the CRA to purchase the land and give 7.5% interest. Mr. Beguiristain explained Auburn was making the investment with Auburn's dollars, and under those conditions, Auburn should be able to recover that investment. He explained Phase IV included a deterrent figure to encourage dialogue and the number did not have to be $5,000,000. Mr. Berguiristain explained he received an email from D.J. Doody's office dated September 23, 2008 indicating they made a revision to the agreement and eliminated Phases III and IV. Mr. Weiland noted he never voted on that. 25 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 Ms. Bright explained she was never in favor of using $12,000,000 in public dollars funded through a bond to pay for a private parking garage for a market rate product in Phase IV. She explained there has to be a public purpose benefit and there had to be an internal rate of return for Auburn. The Senior Tax Credit rental project in Phase I had to be a public purpose for the Phase IV development to occur. Mr. Beguiristain explained the project was between 30% and 40% workforce and affordable housing and had a 3,500 square foot senior center that was open to the public. The project was not four projects; it was one project with four phases. It revitalized the entire street. Vice Chair Rodriguez inquired how organizations were protected against people changing their minds. Ms. Bright explained typically an RFP is not issued unless there was site control. This project never had it. Auburn was charged, as was the CRA staff, to execute a Master Development Agreement. Auburn incurred the properties in good faith, but without an agreement with the Board. Vice Chair Rodriguez inquired how Auburn could be protected from termination from a future Board. Mr. Beguiristain explained they would have some protection when the land use was changed and a 163 Agreement was entered into, but the City has to give the CRA the authority to enter into the agreement. He noted in it, they proposed the bare minimum for the first three phases. There would be profit made on the phases but the incentive for trying to assemble the project was Phase IV. The CRA was protected because they do not pay Auburn until the site plan approvals, permits and all else were in place and they were closing on the construction financing. That was only for Phase IV. He anticipated spending about $2,500,000 to $2,800,000 on Phase I. There was brief discussion about land purchases, and more specifically the owners of the Galley and Finkelstein properties, who had knowledge about the project. Mr. Berguiristain explained they did not want to overpay and they wanted to give individuals fair prices. There was no clause in the agreement that required if they overpaid for land, the CRA had to pay the difference. There would be some properties that would be overpaid. Chair Taylor noted, the provisions in Phase I indicated the CRA still would pay for the land plus 7.5% interest if they dropped out of Phase I. Vice Chair Rodriguez explained there would be some properties that would be overpaid and some properties on which they may get a good deal. Item 4. Number of Phases. There was discussion about the number of phases in the project and the protections added in the contract. Susan Motley, Attorney for the Auburn Group, explained when the Auburn Group received the email and learned the phases were reduced to two, they were upset. In terms of the provisions, they felt they could not deal with just a two-phased project. They insisted it be a four-phased project, but as a result of raising the issue of it only 26 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 being a two phased contract, they wanted additional protections. There was a draft agreement and the parties needed to work together and move forward. She indicated once the Board determines if it would approve a four phase project, they could discuss other issues such as liquidated damages. Mr. Weiland expressed the Board has always discussed four phases, and was never told it was suggested to be two phases. He was not happy about the correspondence. Vice Chair Rodriguez also expressed his disappointment. Attorney Cherof explained it was within the Executive Director's authority to explore the negotiating process, and she has the authority to test some of the aspects of the contract. Vice Chair Rodriguez indicated then Ms. Bright could have exercised the same philosophy applied to the 16 items under discussion; however, Attorney Cherof advised that was not correct, as they were policy matters. Ms. Ross appreciated the items being brought to the Board's attention and was glad they started to discuss them. The environment was changing and the CRA could not assume they would stick with four phases. She explained it was a leap of faith for her to embrace the project at four phases. She clarified she was not implying she absolutely would not do so, but at this point, there was no way. She wanted as much information as possible from staff because these were serious questions. Item 5, Request for Public Subsidy for Market Rate Development. Chair Taylor spoke about the garage and felt it was not the CRA's responsibility to build a garage in someone else's project. Mr. Hay inquired if the garage would have a public use. Mr. Berguiristain responded when the concept for the four phases was presented, it included the garage, and the Board approved it. Some of the items identified were the senior center, 270 affordable and workforce homes, and neighborhood retail. Ms. Harris explained there were many public purposes in the entirety of the agreement. In light of the amount of funds they would have to bond for, she suggested they obtain the opinion of their bond financial advisor on whether it was public or private use. She explained it may not meet the criteria for the 163 bond. The affordable housing and senior center was in the overall agreement but may not be specific about what they want for bonding. There were no liquidation damages if the CRA did not have the ability, by law, to bond. The amount of subsidy for Phase I was $1,900,000. Mr. Hay explained he always heard the project was four phases and he needed to know if the project would be four phases or not. He wanted to see the project get back on track. 27 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 Mr. Weiland explained if it was one or two phases, the project and its numbers would change drastically. He expressed it was his understanding the CRA was close to finalizing an agreement and now he felt it was not. Attorney Cherof explained the agreement drafted was not far from a final product. The policy issues presented needed to be answered. He explained Item 4 was the number of phases which caused uncertainty about the revenue stream going out beyond the first phase. Once that was resolved, they could continue on. Vice Chair Rodriguez inquired if contingencies could be built around the revenue stream. Mr. Beguiristrain explained he was amenable that if funding for the CRA revenue decreased by a certain percentage, they would not construct Phase IV. Ms. Motley explained the most recent draft agreement received from the attorney was a two-phased project. Attorney Cherof clarified the Board was working on the agreement submitted by Auburn which was for four phases. Vice Chair Rodriguez explained if the revenue stream was diminished by a certain percent, that percentage would be carried over commensurately to the subsidy given to the project. There was consensus the two attorneys would develop a plan for Item 4 and bring it back to the Board. Phase IV was further discussed. Ms. Motley explained the intent of the garage was also to provide a public purpose as well as serving the residents living within the structures. It would provide parking for those using the senior center, Park and Ride for visitors to the area, and shoppers in the retail areas. It was assumed the senior residents living adjacent to the senior center would use it, and would be bused in. None of the monies provided by the CRA would be given until the time Auburn secured and closed on its construction financing for that particular phase and it would occur simultaneously at closing. The time frame for that to occur was anticipated to be 2016. The monies would totally subsidize the garage. Tom Hinners, Auburn Development Group, explained they want public parking during the day and private for the condominium residents at night. They were willing to have the condominium units priced with income limits for the workforce housing ordinance, which makes it a public purpose. The construction of the commercial property, the grocery store, would cost about $2,500,000 and would be deeded to the CRA. They could find public purposes for the garage. Chair Taylor felt individuals could not park during certain hours of the day if they lived in one of the units and there should be a certain number of spaces for private parking and a certain number of spaces for public parking. Mr. Hinners responded the spaces were not reserved and shared parking was a common arrangement. 28 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 Ms. Bright suggested Auburn add another level to the garage so they could get all public amenities there. She explained if they go to bond, they have specific criteria that must be met. Mr. Hinners explained the garage was for a workforce housing community and a percentage of units was required. Ms. Bright explained the issue was this was a bond and advance matter, not a back-end revenue sharing Tax Increment Financing agreement. They were a partner in the deal. She emphasized it has to have some sort of Transit Oriented Development stop there, and some public benefit for public dollars to be spent on it. The parties have gone back and forth on the matter. Boynton Beach was targeted to get three of 96 stops on the transit rail. Ms. Motley suggested having bond counsel make a determination based on what Auburn proposed to use the garage for and the public's level of use. Attorney Cherof pointed out they could obtain an opinion today, but it was not clear how binding the opinion would be when the obligation comes forward. The obligation was in Phase IV, and was tied to a liquidated damages clause. Ms. Motley explained the clause, the way it was written, pertained to if the CRA defaulted on the clause; not Auburn. There was consensus to consult with bond counsel. Item 6. Request for FundinQ for Public Improvements. Ms. Bright explained this amount was not in the revised agreement, and staff was to work with Auburn to develop a streetscape. They agreed $500,000 would be for a traffic circle and the balance would cover the entire area. Ms. Brooks explained they do not have a design at this point, so the funds did not relate to anything specific at this point. It was recommended, during negotiations it be a City/CRA project because it was in a public right-of-way and they would work in collaboration with Auburn. The CRA would undertake the design to ensure it would not conflict with what was planned. Then staff would go out to bid, contract and undertake the project in a time line that was consistent with what Auburn would do. Mr. Hinners explained the reason to have Auburn oversee the construction was to coordinate it with the construction of the homes. They would not make profit on the improvement, and they could be made at the correct times in the process. Mr. Hinners was amenable to the CRA handling the process. Ms. Bright recommended the City and the CRA reasonably work with Auburn. Vice Chair Rodriguez explained the City would take over the responsibility for public improvements and the CRA would fund it. Chair Taylor left the dais at 11:06 p.m. Item 7. PhasinQ Order. Mr. Hinners explained for purposes of obtaining the housing credits for affordable housing, they must have the grocery store. Ms. Bright explained they were trying to get the rule changed, and they likely would not make the next cycle. If that did not occur, in the agreement for next year they would have to move forward with the grocery store. Mr. Hinners explained they would have to move quickly and Auburn would pay for the building. 29 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 Mr. Weiland explained if Auburn builds the store, it would benefit American Realty. He inquired if there was any communication between the two developers. He thought there could be a partnership with the store. The location of the store was on Seacrest at the northern block of MLK north. Chair Taylor returned at 11:09 p.m. Ms. Brooks explained the CRA has an obligation for the grocery store. Under the current agreement, the CRA would lease the space at a debt coverage ratio of 1.2 and be responsible for finding a tenant. There was also an unknown number they would be paying to lease the store from Auburn. When Phase IV was completed, Auburn would give them the store. The CRA needed some flexibility and input on the location and the store itself because if they built to the minimum of the Florida Housing Finance Agency standards, it may not equate to getting a grocery store tenant in the retail world. Ms. Brooks explained they had a private sector developer. Ms. Brooks preferred to see negotiation occur with a real grocery store developer as opposed to an existing business owner. That was not what they were looking for. Mr. Hinners was flexible with that provision and would work with the CRA on that. Ms. Bright explained both American Realty and Auburn Development were specialized in affordable housing and she suggested using a retail/commercial developer might be a better option. Item 8. Proiect Scope. Ms. Bright explained this was an error that occurred with the agreements going back and forth during negotiations. When she spoke with the developer, the question was more of a typographical error. Mr. Hinners had no issue with the item. Item 9, Retail. Mr. Hinners was agreeable to the item. There was Board consensus the CRA would not be in the retail business and not be leasing the space and finding a tenant. Item 10. Heiqht. This item pertained to height. The Heart of Boynton Plan would have to be amended, and it would show the project going from four to eight stories for Phase IV only. There was agreement this should be brought back to the public and Mr. Weiland was aware INCA had previously been opposed to the proposed height. Ms. Bright would contact the Development Director and they would contact Auburn to see if the public meetings they held were sufficient and if anything else needed to be done. Mr. Bressner explained the City Commission approved the Heart of Boynton Plan, and this would be a modification. He explained there should be some Board action for the modification of the plan. As part of that, there would be some public discussion. He believed there should be some public notification process. The major modification was on the east end and the original plan did not have that density. eity staff was not sure of the senior center at that location. Ms. Brooks explained that updating the Heart of 30 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 Boynton Plan would require a public hearing, which would likely occur after the agreements are done. There was a timing issue. The height has to be approved via Planning and Zoning, and then further approvals were needed. Ms. Motley explained they would ensure the language provided for some flexibility if that did not occur. The CRA would not be making a commitment as a governmental body to do anything. They would agree to consider land use plan amendments and rezonings to accommodate the project. It did not and cannot obligate them. Attorney Cherof explained they would work to eliminate any language in the contract that could attract litigation. Item 11. Financial Capacity. Mr. Hinners explained paragraph 25 of the contract had a provision that the CRA's obligation to provide funding was contingent upon Auburn Development providing at least 45 days prior to the initial request for advancement of funds for a particular phase, certain financial documents related to the financial condition of Auburn. If the CRA determines Auburn was not financially able to do the deal, they can cancel the entire contract. He explained if Auburn has obtained construction financing for the entire development, then Auburn has proved its financial worthiness and the financial statement requirement would not exist for that phase. That was contained in the draft they developed. Item 12. liquidated DamaQes. Mr. Hinners explained this item was an overreaction on their part. They do not need the liquidated damages portion. Item 13. Overhead Reimbursement. Mr. Hinners had suggested July 1, 2008 be the starting date for their costs. It would not include the cost of the highest paid staff in Auburn. Should the CRA not move forward, he indicated staff who was specifically working on the development, should be reimbursed. He commented the costs would have to be verified. Item 14. Property Acquisition PricinQ. Mr. Hinners explained there was no provision in the agreement the CRA would have to pay for land they acquired beyond the stated obligations of the CRA regarding any phase. Ms. Bright indicated the most important issue was there was no expectation for the CRA to buy land. If they did request they purchase nuisance land, they would not pay anything above and beyond appraised value which would reduce the amount of the CRA's financial obligations they had committed to during the term of the agreement. Mr. Hinners confirmed that was correct. Item 15, Rollover of Community Redevelopment Funds. Mr. Hinners explained paragraph 15 of the last draft entitled "Grants and Loans", Exhibit B - "Funding Example", provides the funds that would be rolled over were funds obtained from grants from other government bodies. The grants reduce the funding obligation. The loans are generally one-percent loans, and the purpose of obtaining the loans was to accelerate 31 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 the process of closing on land while prices were still low. Grants or loans would result in a rollover of funds, but the loans would have to be repaid. Accordingly, only the grants would reduce the dollar amount. Vice Chair Rodriguez inquired if the loans would reduce the CRA's obligation. Mr. Hinners clarified it would provide funds sooner, so the CRA would not have to provide those funds because they could be rolled over. Ms. Brooks asked, for example, in Phase I for the Senior Center, if Auburn did not need all the funds, then under the language in the contract, the funds would rollover to Phase II. She indicated that perhaps the language should be more concise in the document, rather than be contained in the exhibit. Mr. Weiland indicated if all the CRA funds are not used, they should be returned. Mr. Hinners clarified under this scenario, the funds would never be expended by the CRA to begin with. It would not go to Auburn. Rather, it would rebound to the benefit of the CRA. He clarified they were not looking for additional funds. They were asking that some of those funds be used to reduce the CRA's obligation. They were not asking to reduce the funds for the project. The transactions would be settled at the end. Ms. Brooks explained the contract did not contain the provision of verification of the actual project cost versus the CRA's contribution. The pro forma occurs before the development, which was a best estimate. Then there was the actual as-built cost. Mr. Hinners was amenable to providing all of their costs. Ms. Bright explained the issue was the agreement did not provide for the as-built comparison and if it was wanted in the agreement, then language should be added. Ms. Brooks advised Auburn was required to provide that to the State for the senior rental portion of the project, and they could have a similar requirement on the balance of the phases. Mr. Hinners had no objection. Ms. Bright explained this was necessary from a financial/operational aspect. Ms. Motley explained the funds are paid simultaneously at closing of the construction loan for that phase, and the funds paid by the CRA were offset and reduced by the amount of funding or grants that were obtained by Auburn. Those amounts did not come out of the CRA's coffers. The grants would not keep rolling over and over. Mr. Hinners explained the funds being rolled over were proposed to be used at the CRA's discretion to accelerate other phases and it was their objective to construct the development as fast as possible. Item 16. Below Market Rate FinancinQ. Mr. Hinners agreed to the provision. It was expressed that the review of the above items was sufficient for the parties to continue to prepare a final agreement that would be brought back at the next meeting. The agreement would be circulated to the members prior to the meeting for review. The City Commission would also need to approve the agreement the following week. Attorney Cherof suggested having a joint eRA/City Commission meeting the week after the CRA's meeting. G. New Business: 32 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 A. Consideration of Transferring CRA Owned Property to City Ms. Brooks explained back in 2003/04, there was an understanding that whatever land was acquired on the west side of Seacrest would be transferred to the City to enlarge Sara Sims Park, or to create a single-family redevelopment project. The City's lands on MLK would go to the CRA for the redevelopment project. Due to the RFP, they lost track of this. The CRA agreed to buy the City's land on MLK and it was supposed to be an exchange, but it has changed a bit. The CRA owns parcels on the west side of Sea crest, around MLK. More specifically, the parcels were two vacant lots north of MLK, two vacant lots south of MLK, and one that has the Sims Barber Shop on it. The CRA paid $759,975 for the land, purchased mostly in 2004/05. The Property Appraiser's Office shows the value at $307,500. The CRA has no plans for the properties, but the City does, as they have been assembling land for a single- family redevelopment project. The other parcel could be used to enlarge Sara Sims. She reviewed the options. Years ago, some of the City land came from the County as a result of tax deed foreclosures that had a restriction that it had to be used for open space. Chair Taylor inquired if the City could use some of the $2,900,000 from the Housing and Urban Development Division, and if it would be a legitimate purchase. Mr. Bressner explained the City did not have monies in the budget for acquisitions and it was possible they could use part of the Housing and Urban Development funds for that purpose. Doing so would help with the land swap. It would help with the redevelopment of the property on the east side of Seacrest because of the deed restrictions on the vacant property next to the market area on the south side of MLK. The $307,000 was not budgeted, nor was it discussed with his office. Mr. Bressner wanted some time to research the issue with his staff and he requested the item be tabled. Mr. Weiland inquired if the City land purchased from the County was $60,000 and was appraised for $1,200,000. It was agreed they would pay $600,000. He was looking for an even-keeled swap. Chair Taylor explained Mr. Greene, the Development Director would like to have that land. Motion Vice Chair Rodriguez moved to table. Mr. Weiland seconded the motion. Ms. Bright explained staff was given direction to work with the City about items that are of value, and to work with them on the possible Housing and Urban Development allocation. Vote There was a vote on the motion that unanimously passed. 33 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 Vice Chair Rodriguez requested in the future that the City be engaged in the items so they would get information from both sides. B. Consideration of Adopting Economic Development Plan for CRAlCity Chair Taylor explained this was an item recommended by the American Assembly. If they were to approve it, the item would be adopted but they would not move forward with hiring anyone to implement the plan. It would be a discussion item with the CRA, the City and the Chamber of Commerce. Ms. Ross thought the plan was an excellent idea. She pointed out Ms. Bright, as the Executive Director of the CRA, was appointed to the Board of Palm Beach County Overall Economic Program Committee and was appointed by the Palm Beach County Commission. The appointment occurred in May. Ms. Bright explained the plan was beneficial to the CRA, specifically for all the Marina Villages as well as it being another tier of the Business Development Board. She explained Scott Kline did an excellent job working through the Chamber and working with Mark Karageorge and his committee from the Boynton Assembly. Staff also worked with City staff. Vice Chair Rodriguez inquired about Item 2 regarding the liquor license. Scott Kline was present and explained when he was putting together the plan, he was not aware of the time to utilize the liquor license by June of next year. That was the only change. Vice Chair Rodriguez wanted more time to review the document and he offered a motion to table the item. Ms. Bright explained they met with the Assistant City Manager and Hanna Matras, Economic Development Planner, about who would do this. They wanted to issue quarterly reports. This was a temporary measure until the budget, when a decision could be made who would fund a full time position. Mr. Kline explained there were ways to measure progress which were being developed. Motion Ms. Ross moved to adopt the Economic Development Plan. Mr. Hay seconded the motion that unanimously passed. C. Consideration of Recommending to City Commission to Allocate Funds to the MLK Corridor and Ocean Breeze Projects 34 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 Ms. Brooks explained they met with City staff about funds for these projects. Both projects have requested funds from the CRA and the City. The City has a number of funding sources for housing such as the Community Development Block Grant program, the State Housing Initiative Partnership program, and more recently the Neighborhood Stabilization Funds. They met with City staff and there were issues raised by City staff regarding whether they could use the funds to acquire properties that were not foreclosed. The Housing and Urban Development Program Division confirmed the funds did not have to be used for down payment assistance and land acquisition. They were forwarding the requests to make a recommendation to the City Commission to allocate a certain portion of the funds to the projects. Ms. Bright explained the City Manager has a working group for this and a plan needed to be created. Mr. Bressner explained the goal was to have a plan available at the second meeting in November. The Housing and Urban Development Division required that in order to obtain the funds, Boynton Beach, as an entitlement community, must have its Community Development Block Grant program modified and reviewed. The public notification and other requirements to amend the Community Development Block Grant program were in place. It was also indicated that any entitlement community that received funding must submit its preliminary application to the Housing and Urban Development Division by December 1, 2008. Technically, they have until February 9, 2009 to finalize it. A public information hearing was set for October 27, 2008, and they needed public input about how they would like to see the funds used. The team felt the funds should be used not only in the MLK area, but in other areas that are dealing with foreclosure issues. Staff was determining where in the community the clusters exist and what opportunities were available to them. The foreclosed properties would be rehabilitated and resold to income-qualified individuals as a home ownership opportunity. It could also provide a revenue stream to the City. More information would be known later in the week about foreclosures. There was consensus this item would be brought back. D. Consideration of Approval to Offer a Marine Fuel Discount Rate to Commercial Tenants, Neighboring Vessels Occupying Slips and Police Marine Units Mike Simon explained the CRA had purchased the marina and it was brought to their attention by the Fire Marshall that fueling vessels from a mobile truck was not allowed. They added that language to the lease the Board approved in September, which eliminated the ability of the tenants to purchase gas from a truck. The lease and developing some type of discounted fuel rate was discussed. The eity Police Department wanted a discounted rate for some time now. It was at the Board's discretion to determine how to proceed. Three options were given and a determination was needed regarding to whom to extend the discounts. The Boynton Harbor Marina 35 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 only, other vessels within the basin, and the Police Department were identified. Further options were to give no discount of any kind; a 20 cents discount off the fuel dock pump price for gas, and a 30 cents discount off the daily rate of the pump price for diesel. Tenants in good standing were on record with the Dock Master who could give them the discounts on Monday through Friday. The markup on the gas was 45 cents from the cost of the gas from the truck. The cost to operate the pump station was unknown. Ms. Brooks explained they did not know the overhead cost because it was never broken out; it was for the entire marina. They also add an additive in the fuel for boats and that has a cost associated with it. They were not recommending giving the fuel at cost because there were other associated costs, which they believed were approximately the difference to get the fuel there, pay the worker to put the additive in, and put the fuel in the boat. Brian Smith, President Waypoint Marine, the Dock Master, was present and explained the current price of fuel was approximately $4.10 and diesel was just reduced to $3.85. The Hammertime Boat was paying $3.52 and $4.19 and had been purchasing from the truck about 30 years before the Fire Department stopped the operation. It was noted some individuals continue to purchase fuel in that manner, but it was not on the Marina property. Mr. Weiland discussed fuel spills, and felt there needed to be some concessions if they could not purchase from the fuel truck. The CRA agreed, and indicated they did not want to lose business. Mr. Simon explained he, Mr. Smith and his staff, since they took over management of the company and the leases were in place, discussed the matter. They estimated they used about 500 gallons a week. Offering the discount was an opportunity to gain more business. Vice Chair Rodriguez felt if a discount were offered, it should be offered to every Boynton Beach resident who owns a boat, he felt individuals should not be isolated. Ms. Brooks responded it was a common practice. He asserted the CRA is supposed to remove blight and slum and not provide reduced gas prices. Mr. Weiland and Vice Chair Rodriguez debated the issue. Ms. Bright explained this item arose because the Fire Chief issued a mandate, regardless of how long the activity had been ongoing. As a public entity, she did not believe they could ignore the mandate, and they tried to develop a solution. It was her understanding that no one regulated the trucks and regardless of why the Fire Chief issued the mandate, if they made a recommendation to assist the tenants with the discount, they should offer it to the police and tenants in Two Georges, as well. The fuel would be offered to the tenants in the marina basin. There may be five other boat users eligible for the discount. 36 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 Motion Mr. Weiland moved to approve a 20 cents discount price for gas and a 30 cents discount price for diesel for the CRA marina slips as well as slips owned by Steve Skaggs, commercial. Ms. Ross seconded the motion. Mr. Weiland added the Police Marine Units to the motion, which was noted to be Option 1. The motion passed 4-1 (Vice Chair Rodn"guez dissenting.) E. Executive Director Performance Appraisal Mr. Weiland explained he was very pleased with the Executive Director and staff. In light of the CRA staff receiving an increase, and the Executive Director had not requested an increase, he offered Ms. Bright a 2.5% increase and accepted her performance report. Chair Taylor explained the highest rating possible would be five points. The overall score given to Ms. Bright was 4.32 out of a possible five which was outstanding. He praised her leadership, management and organizational abilities. Additionally, the CRA was recognized locally, statewide and internationally, and it has to do with the leadership she demonstrates. He praised her staff which reflects her leadership potential. He agreed with Mr. Weiland and explained that kind of performance deserves recognition. Mr. Hay agreed but noted one Board member did not turn in an evaluation and wanted to know if it was voluntary or involuntary. Vice Chair Rodriguez responded he was out of town and it was a bit of both. He got caught up in what he was doing and he asked for an electronic version, but one was not available. Ms. Ross reiterated she had previously pointed out Ms. Bright's appointment by the Palm Beach County Commission to the Economic Development Committee as County- wide CRA Liaison, and nomination for the Executive Woman of the Palm Beaches Leadership Award earlier this year. She has had a role in other achievements for the CRA along with other staff members. She agreed with the 2.5% increase. Motion Mr. Weiland moved to accept the report of Item 12 E of the Executive Director's Performance Report and recommend they give her a 2.5% increase. Mr. Hay seconded the motion that unanimously passed. XIII. Future Agenda Items None. XIV. Comments by Staff 37 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 Ms. Brooks advised they received a contract from MSG Platinum Gold for the adult and liquor license. There was a right of first refusal. They delivered a contract to them yesterday for $2,200,000. This item would be heard at a Special Community Redevelopment Agency Board Meeting prior to the next City Commission Meeting. Margie Walsh, Marketing and Communications Director, distributed a draft of the CRA "FYI" newsletter. She advised this would be a direct mail piece sent to over 60,000 residents. This would be an educational tool to help distinguish between the CRA and the City. The material explained their financing and had a listing of projects as well as events. The piece would be mailed this week. XV. Comments by Executive Director Ms. Bright thanked the Board for the raise and the recognition. She praised her staff and advised over the past year working with the Board, all was moving in a great direction. XVI. Comments by CRA Board Attorney None. XVII. Comments by CRA Board Mr. Hay requested the Commission Chamber door be fixed so it would not slam. He recommended adding a device that would not allow the door to slam. Vice Chair Rodriguez inquired why the meeting was being videotaped. Ms. Bright explained it was done for their webcasts and podcasts. It was part of the contract but they do it for free. She explained if the Board did not like it, they could discontinue it, but they wanted pictures of the Board in action. The contract was a one-price contract, and there was no extra charge. Ms. Bright would email the cost information to Vice Chair Rodriguez. Vice Chair Rodriguez did not like the Board being videotaped and requested that anything put out about videotaping the meetings be brought to the Board first. XVIII. Adjournment There being no further business to discuss, the meeting properly adjourned at 12:33 a.m. " I - i J '{II 4 I. 'i\ /" (! / I IJ ,,) , '\ 1 ~/ ~~t~~~~~~~h~;~ ~'.Vl;L "1 - Recording Secretary 101608 38