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Minutes 12-09-08 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD ON TUESDAY, DECEMBER 9, 2008, AT 6:30 P.M. IN CITY COMMISSION CHAMBERS, BOYNTON BEACH, FLORIDA PRESENT: Jerry Taylor, Chair Lisa Bright, Executive Director Jose Rodriguez, Vice Chair James Cherof, Board Attorney Woodrow L. Hay Marlene Ross Ron Weiland I. Call to Order – Chair Jerry Taylor Chair Taylor called the meeting to order at 6:30 p.m. II. Pledge to the Flag and Invocation Mr. Hay offered the invocation followed by the Pledge of Allegiance to the Flag. III. Roll Call The Recording Secretary called the roll, and a quorum was present. IV. Agenda Approval: A.Additions, Deletions, Corrections to the Agenda Motion Vice Chair Rodriguez moved to table the following items to the first meeting in January, 2009: Chair Taylor pointed out a second was not necessary on a motion to table. ?XI. Old Business, Item F, “CRA Staffing Plan” and Item G, “CRA Website”; and ?VI. Consent Agenda, Item R, “Approve Rescission of HR ILA with City” and Item S, “Approve Revised Benefits ILA with City.” Chair Taylor believed the Board was required to address Items R and S under Consent Agenda. Vice Chair Rodriguez felt the items could be addressed retroactively in January. 1 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 Lisa Bright, Executive Director, expressed concern about slanderous accusations leveled against her at the last meeting, and she noted for the record that she prepared a chronology to address her concerns under Items F and G. Members of the public had approached her in this regard as well. She acknowledged it was within the Board’s purview to table the items to the January meeting. The motion to table Item F, “CRA Staffing Plan” passed 3-2 (Chair Taylor and Mr. Hay dissenting). The motion to table Item G, “CRA Website” failed 2-3 (Chair Taylor, Mr. Hay and Ms. Ross dissenting). Chair Taylor called for discussion on the motion to table Item R, “Approve Rescission of HR ILA with City.” Ms. Bright explained this item had been included in the budget and the Board previously agreed it should be rescinded. Motion to table Item R, “Approve Rescission of HR ILA with City” failed unanimously. Motion to approve Item S, “Approve Revised Benefits ILA with City” failed unanimously. In summary, it was noted only Item F, “CRA Staffing Plan,” under XI. Old Business was tabled. With regard to VI., Consent Agenda, Item I, “Approval of Funding up to $20,000 from the Residential Improvement Program to Annet Lee,” Ms. Bright noted Ms. Lee passed away, and the item should, therefore, be removed from the Agenda. Ms. Bright distributed an agenda item requested to be added by a private entity and members of the community. The request was for lot use and funding for the Heart of Boynton Community Association, Inc.’s 2009 Heritage Awareness Celebration. Chair Taylor suggested this item be added under XII. New Business, Item B. B. Adoption of Agenda Motion Mr. Weiland moved to approve the agenda as amended. Mr. Hay seconded the motion that passed unanimously. V. Announcements & Awards A. Annual Holiday Boat Parade, Friday, December 12, 2008 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 Kathy Biscuiti, Special Events Director, encouraged everyone to view the Christmas tree, Menorah and Kwanzaa displays. The Cities of Boynton Beach and Delray Beach will host the Annual Holiday Boat Parade Friday, December 12, 2008, beginning at 6:30 p.m. The Parade would start at the Boynton Beach Inlet and proceed to the C-15 canal, south of Delray Beach. She anticipated 50 boats would be participating. The Boat Parade could be viewed from the Boynton Beach Harbor Marina. Food and beverages would be available. The City of Delray Beach would not be involved in the event, but would be participating to a greater degree next year. Ms. Biscuiti also announced the first annual Toys for Tots campaign and urged everyone to donate new, unwrapped toys. VI. Consent Agenda A.Approval of Minutes – CRA Special Board Meeting, October 21, 2008 B.Approval of Minutes – CRA Board Meeting, November 5, 2008 C. Approval of Minutes – CRA Special Board Meeting, November 17, 2008 D. Approval of Period-Ended November 30, 2008 Financial Report E. Approval of Funding up to $20,000 from the Residential Improvement Program to Louis Jean Valceus F. Approval of Funding up to $20,000 from the Residential Improvement Program to Karl Hobschaidt G. Approval of Funding up to $20,000 from the Residential Improvement Program to Cheryl Jackson H. Approval of Funding up to $20,000 from the Residential Improvement Program to Kathleen Capp I.Approval of Funding up to $20,000 from the Residential Improvement Program to Annet Lee (This item was removed from the agenda.) J. Approval of Funding up to $20,000 from the Residential Improvement Program to Lura Lee Lester 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 K. Approval of Funding up to $20,000 from the Residential Improvement Program to Wilfred Byam L. Approval of Funding up to $20,000 from the Residential Improvement Program to Clara Marie Williams M. Approval of Funding up to $50,000 from the Homebuyers’ Assistance Program to Sandra Gayle N. Approval of Funding up to $40,000 from the Homebuyers’ Assistance Program to Ingrid Green O. Approval of Funding up to $50,000 from the Homebuyers’ Assistance Program to Tosi Rigby P. Approval of Funding up to $40,000 from the Homebuyers’ Assistance Program to Jeffrey and April Eddings Q. Approval of Michael B. Schorah & Asssociates, Inc.’s Marina Survey Bid Proposal to Perform Topographical and Underground Utility Surveys for the Boynton Harbor Marina Master Redevelopment Project Construction Drawings R. Approve Rescission of HR ILA with City of Boynton Beach Vice Chair Rodriguez pulled Item R. S. Approve Revised Benefits ILA with City Vice Chair Rodriguez pulled Item S. T. Update on Strand and Bond Market Ms. Ross pulled Item T. Motion Mr. Hay moved to approve the Consent Agenda with the exception of Items R, S and T. Ms. Ross seconded the motion that passed unanimously. Vivian Brooks, Assistant Director, announced several people wished to express their gratitude to the City and CRA for the Homebuyers’ Assistance Program. 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 Mr. and Mrs. Gayle, 12 Crossing Circle, thanked the organization for their assistance and allowing them to look forward to their “dream house.” Tosi and Ian Rigby, thanked the City of Boynton Beach and the CRA for their assistance, which made a difference in their lives. They also thanked Jeff Wooster and Peggy Miller. Ms. Brooks noted of the eight houses set aside by the Homebuyers’ Assistance Program, six had been sold. Great progress has been made since the Board’s allocation of $400,000 last summer. She circulated photographs of the houses. VII. Information Only: A. CRA Policing Activity Report for the Month of October 2008 and District Statistics for the Months of October and November 2008 (This item would be addressed after Pulled Agenda Items.) C.Boynton Beach CRA and Trolley Website Updates D. Trolley Route Ridership Update E. Planning and Development Board Meeting Agenda – November 25, 2008 VIII. Pulled Consent Agenda Items: R. Approve Rescission of HR ILA with City of Boynton Beach Vice Chair Rodriguez noted the agreement provided for Human Resource services by the City at a cost of $6,000 per year, or $500 per month. He remarked the CRA was a small organization and did not have a Human Resources Department. He believed the CRA would benefit from the interlocal agreement with the City, as it could provide oversight, compliance and legal support. The services provided by the agreement were critical, and he would feel more comfortable with the City performing the functions. He felt $6,000 per year for the services was reasonable and believed the agreement should not be terminated. Ms. Bright explained the City Commission directed that a process be created for CRA staff to have access to the City’s Human Resource services. During the budget cycle, CRA Staff requested the agreement be rescinded. The Board concurred, as CRA staff utilized the services of independent Human Resource consultants rather than the City’s services. No new hires were planned for this year and positions had not been funded. If the Board felt the agreement should not be rescinded, CRA staff would be forced to pull $6,000 out of the contingency fund. 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 Chair Taylor noted it appeared the CRA did not utilize the City’s Human Resource services and as such, he was in favor of rescinding the agreement. Vice Chair Rodriguez reminded the Board of previous personnel issues at the CRA including challenges with the former CRA Director, former Chief Financial Officer and two administrative assistants who were given severance packages after very short periods of employment. He also noted when the Board granted an unbudgeted increase to the Executive Director, no questions were raised about dipping into the contingency fund. Ms. Bright pointed out none of the individuals referred to had ever filed a complaint against the CRA for improper hiring or firing practices, and none sought unemployment compensation at the expense of the Agency. The CRA followed the recommendations of the Board Attorney at the time. Vice Chair Rodriguez inquired whether City services were utilized in hiring the temporary Administrative Assistant. Ms. Bright replied in the negative, adding an advertisement for the position had been placed in the newspaper. Mr. Hay concurred with Chair Taylor and believed the agreement should be rescinded. Ms. Ross noted she had been satisfied with the explanation provided by the Executive Director. Mr. Weiland believed if funds were not projected for hiring this fiscal year, the issue could be considered during next year’s budget cycle. Chair Taylor reiterated his support for the Executive Director’s recommendation and had no objection to rescinding the agreement. Motion Mr. Hay moved to approve Item R. Ms. Ross seconded the motion that passed unanimously. S. Approve Revised Benefits ILA with City The agreement allowed the CRA to utilize the City’s benefit plans for medical, dental, vision and life insurance coverage. The monthly cost to the CRA was $8.20 per employee, or $73.80 for nine employees, at an annual cost of $885. Motion Ms. Ross moved to approve. Mr. Hay seconded the motion. Bob Brown, 701 South Seacrest, inquired as to the administrative costs for insurance. The Finance Director was not present, and Ms. Bright suggested Mr. Brown call or visit the CRA office, and she would provide specifics to his questions. He inquired about full- 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 time staff and was advised there were nine full-time employees in addition to the Executive Director. In response to another inquiry, Ms. Bright advised the combined salaries totaled $640,000 and no pensions were provided. The motion passed unanimously T. Update on Strand and Bond Market Ms. Ross requested the Strand Decision be addressed by the Executive Director, and specifically the law established by a legislator. Ms. Bright explained she had received recent emails from the Florida Redevelopment Association, and no bills were currently proposed. It was likely bills would be enacted when the Legislature was back in session. Ms. Bright believed Community Redevelopment Agencies would be urged to pay for police and fire services within CRA districts. There were challenges dealing with property tax reform and with the 141 Community Redevelopment Agencies in Florida regarding redevelopment efforts. As to the Strand Decision, the bond market was still volatile. This would likely not stabilize for six to eight months into the new presidential administration. Other financing options were now available. It was suggested the Board might want to consider issuing something similar to a utility tax. Motion Ms. Ross moved to approve. Mr. Weiland seconded the motion. Bob Brown, 701 South Seacrest, inquired as to the tax reformation referred to by Ms. Bright. Ms. Bright pointed out she referred to challenges the Legislature might set in motion because municipal governments were financially strapped as a result of rising personnel costs. Depending upon considerations by the Legislature, the ability could change for a CRA Redevelopment Trust Fund to assist in supporting services. The City did not provide the CRA with funds. Ms. Bright had discussed these issues with the Executive Director of the Redevelopment Association and attorney David Cardwell. Ms. Bright again suggested Mr. Brown contact her office with a list of his questions, and she would provide the requested information. IX. Public Comments: (Note: comments are limited to 3 minutes in duration) th Mack McCray, 806 NW 4 Street, expressed concerns about the Heart of Boynton. He read into the record an article that appeared in Monday’s Palm Beach Post: 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 “Slow the Heart of Boynton Rush.” Will Boynton Beach finally be able to revitalize the Heart of Boynton, twenty-six acres on Martin Luther King Boulevard between U.S. 1 and Seacrest Boulevard? Probably not. More than two years ago, the City’s Community Redevelopment Agency picked a developer for the project but the developer turned out to be short on credibility and short on financing. Now the runner-up, Auburn Group, has proposed a 12-year redevelopment plan that puts the CRA at risk if the plan doesn’t work, fails to answer critical financial questions and calls for $23 million in public support, far more than originally anticipated. The biggest chunk of that support will be $12 million for a parking garage that mostly will support market-rate townhomes and apartments. The project’s first phase, 160 affordable apartments for senior citizens, relies on tax credits that can’t be granted unless there’s a grocery store nearby. The project’s third phase called for the grocery store. Auburn’s predecessor, Intown Partners, failed to produce statements to show that it had the backing to pull off the project. CRA officials said that they haven’t seen Auburn’s financials since 2006. Times obviously have changed since then. Also, Auburn is in a default dispute with the Delray Housing Authority over its plans to rebuild Carver Estates, but the troubles haven’t slowed the push for a Heart of th Boynton contract signing at a special meeting slated for December 16. The CRA calculates that it would have to put up $3 million for the project’s first phase. If work didn’t start by 2012, the CRA could cancel the contract and buy Auburn’s land, but the Agency would have to pay Auburn’s development expenses, including consulting contracts. Auburn says that it needs assurance to move forward with land purchases. The Intown deal fell apart after City Commissioners disbanded the independent CRA Board and took over the many financial issues that they said had been lacking, but where is that attention to the financial strength of the developer now? The controversy involving Intown also led to an FBI probe, as Ron Weiland pressured Intown President, Samantha Simons, to make payments to lobbyist David Katz, a former City Commissioner. Mr. Katz switched last year from Intown to Auburn and remains its lobbyist. Some members of the CRA Board, notably Mayor Jerry Taylor, Commissioners Woodrow Hay and Marlene Ross, have been taken the responsibility of taking a hard look at Auburn. Nobody wants the Heart of Boynton’s first proposal for development in 2001 to remain blighted, but Boynton Beach can’t move forward with the plan that has little chance to succeed and would prove costly if it failed. He inquired as to the amount spent on Requests for Proposals (RFP). Chair Taylor pointed out this would be discussed under Item E, “Master Development Agreement with the Auburn Group Status Report.” Mr. McCray believed financial statements should be provided by Auburn, and contended if anything went wrong, the entire City would be held accountable. 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 Mark Karageorge, 240-A Main Boulevard: (1) commended Chair Taylor for promoting the City’s first “green” office in the Marina Village. Chair Taylor noted Ms. Ross had taken the lead on the “green” initiative; (2) was impressed with the Public Art mural painted on the “Pantry” as part of the CRA’s facade grant program; (3) invited the Board to attend the Chamber luncheon tomorrow at 11:30 at Benvenuto’s; (4) Habitat for Humanity was building another affordable home in the City and was seeking volunteers; (5) commended Kathy Biscuiti, Wally Majors, and Chiefs Immler and Bingham on the Holiday Extravaganza and concert; and (6) requested clarification on Auburn’s sponsorship of the Holiday Extravaganza and the City’s return of Auburn’s check. Chair Taylor noted the issue would be addressed under Item E. Jeff Wooster, 828 South Road, and Peggy Miller, 7144 Coral Key Way, thanked the Board for making the Boynton Hills project possible. Three houses were sold, three more were under contract, and Mr. Wooster anticipated the project being sold out by March. He also acknowledged the Boynton Beach Faith-Based CDC’s role in the project and noted Ms. Miller, of Seaside Bank, had been an integral part of the project as well. Ms. Miller thanked the Board for providing the funding which benefited many homeowners. The partnership created between the lender, CRA, CDC and RTG would not exist without the Board’s financial contribution. Mr. Hay thanked Mr. Wooster and RTG, adding he had toured many of the homes and found them to be of high-quality. In conversations, Mr. Wooster indicated he would resolve the rodent issue. Mr. Hay publicly thanked Mr. Wooster for a job well done. Victor Norfus, 261 N. Palm Drive, inquired whether developers had taken any steps to do away with the rodent problem prior to clearing land. Mr. Hay advised he had spoken with developers, and they agreed to take measures, including the use of traps and chemicals. Mr. Norfus indicated he would address this issue with the Planning and Development Board as well. Keturah Joseph, Boynton Beach Faith-Based CDC, echoed the remarks of Mr. Wooster and Ms. Miller, noting the importance of the collaborative efforts in working with RTG, Seaside Bank and Ms. Miller. The CDC had been working with the buyers in obtaining a mortgage and was currently in communication with the Auburn Group. Bob Brown, 701 South Seacrest, inquired/commented as follows: ?Was the contribution to RTG from the CRA or the City? Chair Taylor advised it was from the CRA. ?What was the contribution per house? Ms. Bright advised the contribution per house was $50,000 each for eight houses, for a total of $400,000. 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 ?Were the CRA Board members paid for their services? Chair Taylor advised that the CRA Board members were not paid for their services. ?Did the baseline tax on properties that fell within the CRA go directly to the CRA? Chair Taylor responded in the affirmative, adding Tax Increment Financing (TIF) revenues were required to remain within the CRA boundaries. In the event of the CRA’s dissolution, funds would revert back to the City. ?Were the food and beverage vendors also sponsors of the Holiday Extravaganza? Ms. Biscuiti advised the CRA had a contract with a catering company that provided the CRA with 20% of the proceeds. ?He understood the only people invited to the VIP party were members and friends of the CRA Board, CRA staff and City Manager. He believed this was inappropriate. Ms. Bright offered to provide a list of the guests. Chair Taylor noted a VIP area was usually set aside for elected officials or Board members and their guests at public events in most cities. Ms. Biscuiti explained the VIP area was a sponsor/hospitality area. The sponsor paid for everything and ensured all of the elected officials and their guests were invited. ?He felt “squeamish” about the City’s return of Auburn’s check. Chair Taylor noted the decision was made to refund the sponsor’s money on the last day of the event. The event went forward as scheduled, as it was too late to make any changes. th Nancy Chandler, 914 N.E. 7 Street, expressed concerns about the MLK improvement project, in that she understood nine-story buildings were going to be constructed. Chair Taylor pointed out this would be addressed under Item E of the agenda, and she could address her concerns at that time. No one else having come forward, Chair Taylor closed the public comments. X. Public Hearing: Old Business: New Business: XI. Old Business A.Consideration of Monthly Police Reporting Format 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 Ms. Brooks noted the item was on the agenda at the request of the Chief of Police in order for the Board to gauge the effectiveness of the CRA policing efforts. There had been a change in the reporting method. The old report consisted of an Excel spreadsheet, while the new report consisted of an Excel spreadsheet and a narrative of the activities performed by the team during the time period. A summarization was included as to number and type of arrests made by police districts. Sgt. DeGiulio provided a more in-depth narrative report from March through October 2008 which included a year-to-date net gain or loss in criminal activities. Essentially 95% of the CRA area was encompassed within the policing reporting areas. Ms. Bright pointed out th the CRA Policing Unit would not mark its one-year anniversary until March 17 and as such, the benchmark was difficult to establish. Bob Brown, 701 South Seacrest, requested meeting materials be provided at the front desk. Chair Taylor suggested Mr. Brown stop by the CRA office, at which time he would be provided with copies. Ms. Brooks asked for a consensus as to whether the new reporting form was acceptable. Attorney Cherof recommended the format be accepted by motion. Motion Mr. Hay moved to accept the format. Mr. Weiland seconded the motion that passed unanimously. B.Consideration of CRA Boundary Amendment Action Ms. Brooks reported the issue had been resolved after two and a half years. Chair Taylor, Attorney Cherof, Ms. Bright and Ms. Brooks met with Palm Beach County Appraiser Gary Nikolits and his staff. Mr. Nikolits will be able to create the new CRA districts in the year of annexation of the projects. As a result, the CRA would be receiving the revenue for the improvements to the projects, and the five-year budget projections were on target. Additionally, the Property Appraiser did not expect the valuation drop to be as severe as anticipated, and would be closer to 5%. The City Manager’s projections were approximately 4.5% for the CRA. Chair Taylor expressed his appreciation to Ms. Bright, Ms. Brooks and Attorney Cherof for their efforts in resolving the issue to the benefit of the CRA. A tremendous amount of work was involved in bringing the matter to fruition. C.Consideration of Action on Ocean Breeze Site Ms. Brooks advised action had been taken at the November 5, 2008 City Commission meeting to allocate $400,000 of the City’s $2.9M Neighborhood Stabilization Funds 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 (NSF) to the Ocean Breeze Project. CRA staff was unaware of the caveat added at the meeting that the CRA receive matching funds from the County within six months. She explained County Neighborhood Stabilization Funds (NSF) could not be utilized because Boynton Beach was an entitlement City. The County had allocated their development funds for the year and would not be able to allocate funds for developer assistance until June. The six-month requirement to obtain matching funds from the County rendered the $400,000 from Neighborhood Stabilization Funds (NSF) unusable to the project. Additionally, the six-month caveat was illogical. The funding requested was for down- payment assistance and the funds would not be utilized until the project had been completed and closings occurred. Chair Taylor believed Ocean Breeze was a much-needed project in the Heart of Boynton which would provide homes for 32 single families. Chair Taylor would be meeting with the CRA Executive Director and a County Commissioner in order to pursue other funding opportunities from the County. He requested additional time to pursue this. Regardless of the six-month proviso required by the City Commission, the City would have 18 months within which to encumber the funds. Kurt Bressner, City Manager, advised the application packet had been sent to the Federal Department of Housing and Urban Development (HUD), and HUD noted its preliminary approval of the City’s use of the $400,000. The only comment received from HUD was that the dollars that were to be used to purchase the homes were to be utilized in areas having a higher concentration of foreclosed homes, mainly in the northwest and northeast quadrants. That did not mean that funding would not be available for other parts of the community. Ms. Brooks advised the land was being subsidized. The project was not in default on the west side, as the Board executed an amendment to the contract granting an extension to American Realty. Vice Chair Rodriguez advised he had received calls from developers who agreed to develop the project at affordable prices if the land were subsidized. He believed this should be explored. Ms. Bright noted staff previously met with the developer, Assistant County Administrator Shannon LaRocque, and Ed Lowery, who dealt with Community Development and entitlement funds. While the County did not have funds available this year, Ms. LaRocque believed it was important for the project to be in the “pipeline” to be considered next year. Staff would be meeting with County Commissioner Addie Greene in search of funding and support for the project. Ms. Bright did not believe the community would be pleased if a third Request for Proposals (RFP) was sought. She did not favor delaying the project further. 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 Frank Chirkinian, representing American Realty Development (ARD), commented the $400,000 contribution allowed American Realty Development (ARD) to write down the retail value of the homes and reduce the cost to the buyers. He contended he could build and sell the homes for more money, but he did not wish to do so. Ms. Brooks noted there were two purchase agreements relating to the sale of two parcels of land. The purchase agreement addressed at this meeting related to property on the west side. The original the cost of the land was $1.2 million, but was written down to $600,000. It was noted there had been no material changes in the cost to develop housing other than a slight change in construction costs. Chair Taylor requested the six month deadline originally imposed by the City Commission on November 5, 2008 be lifted so that other funding opportunities could be explored. Vice Chair Rodriguez felt that, although the funds were not required to be encumbered for 18 months, they would be worth considerably less at that time. Mr. Bressner explained that final approval of the funding would not be received until February 2009, at the earliest. He suggested the six-month requirement begin running from February rather than November, but believed the City Commission might wish to amend its previous timeline. He felt the County might be able to provide funding for the next fiscal year. Chair Taylor suggested that the Board make a motion requesting the City Commission reconsider the six-month deadline on the project. Motion Ms. Ross moved to recommend that the City reconsider the six-month timeframe. Mr. Hay seconded the motion. Peggy Miller pointed out the funding provided to the buyers was not a gift and had to be repaid. Based on current market conditions, the subsidy was crucial for buyers to obtain financing. Ms. Bright noted that at the August 12, 2008 Board meeting, there was consensus to move ahead with the project by giving American Realty the land. Staff also supported the request to develop the property on the west side. Ms. Brooks noted the contract would have to be revised and the item brought back to the Board. The motion passed unanimously. 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 D.Consideration of Resolution No. 08-07 Amending the Community Redevelopment Plan to Include Community Policing Innovation Program and Infrastructure Improvements The CRA was currently funding a Community Policing Program, and had entered into an interlocal agreement with the City to fund infrastructure improvements. However, these items were not within any CRA Plan. The first CRA Plan noted that the City’s Capital Improvement Program (CIP) was sufficient, and it was not necessary for the CRA to participate in upgrading the infrastructure. The CRA’s current auditors advised that in order to comply with State Statutes, the use of CRA dollars for these projects should be set forth in a plan. This item was brought before the Board to consider amending the Plan in order that the infrastructure and policing services could be legally funded. Attorney Cherof explained the amendment would require the approval of the City Commission, as only the City Commission had the authority to amend the Community Redevelopment Plan. This item had several subcomponents, including the approval of the Downtown Master Plan. Ms. Brooks pointed out language to amend the Downtown Master Plan would be presented to the Board in February and would ensure compliance with State Statutes. Ms. Ross inquired whether the policing structure was decided by the previous CRA Board. Ms. Brooks replied in the negative, adding the decision was made in the summer of 2007. The following language was a direct quote from the original CRA Plan based on the City’s Capital Improvement Program (CIP) in effect at the time: “The analysis concludes that the proposed redevelopment project will neither strain existing facilities nor incur costly improvements.” A study made in 1984 deemed the infrastructure to be sufficient for the redevelopment of the downtown. Since that time, the density had increased. Mr. Weiland left the dais at 8:01 p.m. Attorney Cherof explained one would have to picture the condition of the entire area in 1984 to understand the determination that infrastructure improvements were not needed. The current development of the property was the result of the activities of the current Board, and there was a need to support the improvements. Bob Brown, 701 South Seacrest, inquired as to how many police officers had been added to the CRA. Chair Taylor replied five had been added. Mr. Weiland returned to the dais at 8:03 p.m. 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 Motion Mr. Hay moved to adopt Resolution No. 08-07. Ms. Ross seconded the motion that passed unanimously. E.Master Development Agreement with the Auburn Group Status Report Attorney Cherof reported he had not received the most recent revised Master Development Agreement from attorney Susan Motley until 6:00 p.m. and had not had an opportunity to review the document. The agreement was to move forward for joint consideration by the Board and City Commission at next Tuesday’s City Commission meeting. Chair Taylor disclosed the following comments. In December 2007, the CRA decided to present a Holiday Extravaganza and sought sponsors for the event. The Auburn Group sponsored the event. Chair Taylor participated in the Christmas parade, lighting of the Christmas tree, and welcoming the public. At the same time, a small VIP area was set up for the elected officials, Board members and their guests, and beverages and snacks were served. In 2008, the Auburn Group had appeared before the Board with regard to the Master Development Agreement. Chair Taylor noted his participation in the events would have no bearing on the manner in which he would vote on the Development Agreement. At a recent workshop, one of the issues discussed in relation to the agreement was a third-party financial review, which the Board agreed it would not pursue. Chair Taylor now advocated a third-party review prior to going forward with the agreement. The third-party verification would determine whether Auburn had the ability to complete the project and whether the CRA had the necessary funds. Additionally, there had been no financial reviews since July 2006. Chair Taylor’s second concern relating to the Development Agreement was the required 12-year commitment of Tax Increment Financing (TIF) funds in the amount of $23 million. As his term of office would be expiring in the near future, Chair Taylor expressed apprehension in committing the current or future Board or City Commission to the $23 million contribution, and preferred that the project be completed in phases. Another concern pertained to the construction of a parking garage at a cost to the taxpayers of $16 million dollars. Chair Taylor did not feel the garage could be deemed a public use because of its location. While these concerns should have been addressed in the latest revised agreement, Chair Taylor noted his concerns with the public’s perception of Auburn’s sponsorship and any perceived notion that the sponsorship could influence the Board. To that end, unless otherwise advised by the City/Board Attorney, Chair Taylor noted he would execute a document stating he would not vote for or against the Development Agreement. 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 Vice Chair Rodriguez interjected, noting the Board members had been approached for advice at numerous events and had an obligation to respond. Pursuant to communications with the Board’s Attorney regarding Auburn’s sponsorship of the events, Chair Taylor determined Auburn’s check should be returned. Mr. Hay agreed with Chair Taylor, and while he did not believe Auburn would use its sponsorship as leverage, public perception could not be ignored. He had no objection to the return of Auburn’s check. It was his position the item be tabled pending the Board’s thorough review of the agreement. He noted his intent to vote one way or the other after fully digesting the provisions of the agreement. Ms. Ross requested clarification from Chair Taylor. Chair Taylor believed the Board members should do whatever they felt was best, but because of public perception, he would not vote on the Development Agreement at this time or in the future. Mr. Weiland pointed out the Board would be subject to a tie if a fifth vote was not available. Attorney Cherof advised no action was required at this meeting. The matter was placed on the agenda to provide a status report and would be addressed at next week’s Commission meeting. At that time, the CRA would also meet in a special session jointly with the Commission. It was contemplated that a decision would be made whether to go forward or not with the project at that time. Mark Karageorge, 240-A Main Boulevard, understood and empathized with Chair Taylor’s position. He questioned whether the costs would now have to be incurred by the taxpayer. He was advised the costs would come out of the contingency fund, or Tax Increment Financing (TIF) dollars. Ms. Bright indicated the costs might be able to be offset by marina slip revenues. She pointed out Auburn had not been the only company approached, and that staff maintained a comprehensive list of the individuals solicited. It was hoped some of the individuals would be able to underwrite the costs after the first of the year. She would explore other funding opportunities. Mr. Karageorge believed two separate agreements, a sponsorship agreement and Master Development Agreement, were at issue. Attorney Cherof noted there was no contract with any individual or corporation to sponsor a CRA event. The offer was a gratuitous act by the sponsor, and no contract was entered into between the CRA and the sponsor. Ms. Biscuiti explained a sponsorship packet was reviewed by the parties, and an agreement had been reached with regard to the compensation. There had never been a written, signed contract, but rather a “gentleman’s agreement.” Mr. Karageorge 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 contended contracts could be verbal, but if the necessary elements were present, a contract existed. Attorney Cherof indicated Mr. Karageorge was entitled to his interpretation of the relationship, but he would not comment on whether a contract existed as that was not a matter before the Board. Mr. Karageorge contended the funding of the event with Tax Increment Financing (TIF) dollars was a matter governed by the Board. Attorney Cherof maintained this was a policy decision and not a matter before the Board. Bob Brown, 701 South Seacrest, did not feel the Board should have a separate VIP tent, and should avoid any conflict. Vice Chair Rodriguez believed this issue should have been placed on the CRA agenda for consideration. He expected future requests for dollars would be placed on the agenda for the Board’s consideration. nd Bellesheba Edden, 1208 NE 2 Street, agreed with Chair Taylor and suggested Vice Chair Rodriguez conduct himself honorably as an elected official. Vice Chair Rodriguez responded he had always acted as a steward of taxpayer dollars. th Mack McCray, 806 NW 4 Street, inquired as to the amount of the returned check. Ms. Bright noted the amount of the check was $25,000. Mr. McCray noted his respect for Chair Taylor. Victor Norfus, 261 N. Palm Drive, supported Chair Taylor in his stance on the Development Agreement. He believed there should have been a timeframe within which the Development Agreement was to be provided. Any item on the agenda for discussion should be received timely. th Nancy Chandler, 914 N.E. 7 Street, inquired whether anything higher than three- story buildings were proposed in the Master Development Plan. Chair Taylor responded in the affirmative. Ms. Chandler questioned whether the agreement would be voted on th at the December 16 Commission meeting and whether the public would have an opportunity for input. Attorney Cherof noted the item would be on the agenda for discussion and possible action by the Commission and the Board, and the public would be invited to speak. Ms. Chandler voiced her objection to nine-story buildings and believed exceptions to the zoning should not be the rule. She maintained many people th would be addressing this issue at the December 16 Commission meeting. Ms. Bright questioned whether the Board would consider not having the joint meeting th on December 16. Mr. Hay felt a separate meeting was needed. There were a number of issues he wanted to discuss, and he did not believe enough time would be available just prior to the Commission meeting. He, therefore, suggested the CRA meeting be 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 scheduled for some time in January. While he was aware of a meeting with the Homeowners’ Association in the Heart of Boynton area, he did not recall any meetings with the Inlet Cove Association (INCA). He believed their input was necessary on development affecting Federal Highway. He inquired whether the east side of Federal Highway had been down zoned. Ms. Brooks verified that it had been down zoned as part of the Federal Highway Corridor update. Mr. Hay believed it was inequitable to down zone on one side of the Highway while allowing the other side to exceed eight or nine stories. As discussions were necessary, he would not advocate moving forward too quickly. While he previously objected to the third-party review and then rescinded, he supported Chair Taylor’s position that the third-party review was necessary in a project of this size. Mr. Weiland objected to the third-party review, as it would require additional time and cost to the CRA. Vice Chair Rodriquez believed Mr. Hay had referred to a financial review, not a contractual review. He inquired as to who conducted the first financial review in July 2006. Ms. Bright responded it was CRA staff and PMG Associates. Cito Beguiristain indicated the Auburn Group had no objection to providing financials, and the Master Development Agreement allowed for an annual review of Auburn’s financials. Additionally, the CRA was not required to provide funding until a bank or other lending institution provided financing. The agreement included provisions for a third-party review, and he did not believe the CRA should provide Auburn with any funds without the third-party review. Attorney Cherof confirmed the rights of review were included in the previous agreement. Vice Chair Rodriguez pointed out provisions for a review were already built into the Master Development Agreement. If there was no risk of providing funding or expending any dollars until the review had been completed, he questioned the necessity of a third-party review. Attorney Cherof pointed out there were risks associated with entering into an agreement. There was a good deal of “fuzzy” language in the previous draft which should have been removed. It was often difficult to withdraw from an agreement without the other party asserting a breach. Ms. Bright advised a review would take six weeks to complete. Mr. Beguiristain suggested the Board approve the agreement in its form, subject to a third-party financial review. Auburn was concerned as, in addition to the six weeks 18 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 needed for the review, another three months might be required to prepare a Request for Proposals (RFP) and select a company. Timing was important to Auburn because they wanted to have the grocery store and retail center completed before March 2010 in order to obtain a tax credit. They would have the confidence to move forward if an agreement was approved subject to a financial review. Chair Taylor pointed out the current financial information was more than two years old and he would not recommended an agreement be signed without a third-party financial review. Commissioner Ross requested clarification of the two meetings to be held on December th 16. Attorney Cherof explained it was proposed a contemporaneous review of the final draft of the agreement be held by the Commission and CRA Board. Chair Taylor believed the meetings might be too much for one night. Commissioner Ross agreed. Attorney Cherof pointed out it would be unlikely the City Commission would unilaterally consider the Auburn agreement, as the CRA bore the bulk of the responsibility in its relationship with Auburn. Chair Taylor suggested, rather than having the CRA meeting prior to the Commission meeting on December 16, 2008, the issue be addressed at the regular CRA Board meeting on January 16, 2008. The Board concurred. Mr. Beguiristain noted there was no timeline challenge to address the agreement in January. st Elizabeth Jenkins, 711 NW 1 Street, suggested the board give thought to the Agreement. Vice Chair Rodriguez left the dais at 8:55 p.m. and returned at 8:58 p.m. The Board confirmed to Ms. Bright its wishes to have the MLK Agreement brought back at the CRA Board’s January 16, 2009 meeting. Ms. Bright also requested consensus on whether the Board was directing staff to seek a financial consultant for the third-party verification. Chair Taylor, Mr. Hay and Ms. Ross indicated their agreement. Motion Mr. Hay so moved. Ms. Ross seconded the motion that passed unanimously. In testing Auburn’s capacity for funding, Ms. Bright inquired whether the Board wished to include CRA staff in the process. It was determined the CRA’s capacity to fund would be under Ms. Bright’s purview. It was questioned whether the bond issues and procedures had been resolved. Attorney Cherof noted the bond counsel advised that 19 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 with respect to the financing of the garage element, he would like to see the Commission test that process through a bond validation proceeding. With the reversal of the Strand decision, Ms. Bright inquired whether the Board still wished to proceed through a bond validation proceeding. It was agreed the proceeding should go forward and be contingent upon approval of the agreement. Attorney Cherof explained a bond validation proceeding would not be conducted until such time as attempts were made to float a bond. F.CRA Staffing Plan (Tabled to the first meeting in January 2009) G.CRA Website Ms. Bright noted the item had been added to the agenda for the November 5, 2008 meeting. Vice Chair Rodriguez observed a link on the CRA website, contending City and staff resources were being used to sell paintings. Ms. Bright noted Vice Chair Rodriguez had accused her of gross misconduct. Ms. Bright was directed to respond to the allegations, and she provided an analysis of her activities relating to the history of the CRA and Public Art, as well as her relationship with Katie Barr. Vice Chair Rodriguez indicated he had been perusing the website and observed a link to “Fine Caribbean Art,” which included a photograph of the Director of Marketing’s sister as the painter on the site. He contended the painter was also the best friend of the Executive Director. He noted the Executive Director previously commented she was not aware of the links. Vice Chair Rodriguez believed it was a conflict of interest to have the sister of the Marketing Director and the Executive Director’s friend as the only vendor linked to the CRA website. If there were opportunities for other vendors, he would have no objection. He requested the Executive Director acknowledge the potential conflict, correct it and move forward. Chair Taylor did not believe a conflict existed or that art was sold through the CRA. Art exhibiting varying cultures in the community was displayed at the CRA offices as well Commission Chambers and other City facilities as part of an Arts program undertaken by the City several years ago. Ms. Bright noted Ordinance No. 06-085 was adopted at the November 21, 2006 City Commission meeting. The ordinance provided for voting abstentions by Board members with conflicts of interest and disclosure of conflicts of interest by Board members. At the May 20, 2008 Commission Meeting, Vice Chair Rodriguez applied for a hardship variance for his residence at 947 Isles Road. Staff found no basis for a hardship and recommended a denial. She contended Vice Mayor Rodriguez did not step down from the dais at that time and as such, he did not follow the provisions of the ordinance. 20 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 Vice Chair Rodriguez explained he had been advised by the City Attorney at that time as to the actions he needed to take. Ms. Bright read from an article featured in the November 15, 2008 Sun-Sentinel, a copy of which is attached to the original minutes of December 9, 2008, and which is on file in the City Clerk’s Office. She noted her relationship with Ms. Barr was developed through work. The link on the website had been removed and replaced with other sales and links. She did not feel this issue was pressing in light of the crisis faced by the nation and noted she would take any action directed by the Board with regard to the website. While the link on the website had been removed, it would not change the fact that the City was authorized to sell art on the website pursuant to an agreement with Ms. Barr and the former CRA Board for in-kind services. Vice Chair Rodriguez felt he was a steward of taxpayer dollars, and if he observed an inappropriate use of funds, he had an obligation to bring the issue to the Board. Neither Chair Taylor nor Mr. Hay believed any conflict of interest existed. Staff members were professionals who relied upon their reputations to earn a living, and comments pertaining to gross misconduct impacted directly on their responsibilities. XII. New Business: th A. Request by Boynton Beach Faith-based CDC to Sell Land on NE 4 Avenue to the CRA Ms. Brooks noted a letter had been received from Keturah Joseph, the Interim Executive Director of the Boynton Beach Faith Based CDC. The CDC had purchased thth land on the block between NE 4 and NE 5 Avenues. The CRA had assembled three acres with that block as well. The CDC inquired whether the CRA would have any th interest in purchasing the land on NE 4 Avenue, and the issue was brought before the Board for consideration. Monies had not been budgeted for land acquisition in the current budget year as a result of revenue shortages. If the Board was desirous of purchasing the land, the CRA might be able to assume the mortgage. Ms. Joseph advised the CDC was not currently making monthly mortgage payments to Local Initiatives Support Corporation (LISC), but rather quarterly interest-only payments of approximately $9,000. In a review of the files, Mr. Joseph determined Local Initiatives Support Corporation (LISC) provided a loan to the CDC to purchase the land. It was intended that the CDC would develop the parcel concurrently with the CRA, as the CRA had been purchasing the surrounding properties. Ms. Joseph had inquired as to the CRA’s intent to develop the property. She was advised the CRA was focusing on the Ocean Breeze project and did not anticipate developing the property at this time 21 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 because of the current market conditions. It was financially difficult for the CDC to continue the quarterly interest payments to Local Initiatives Support Corporation (LISC). Therefore, the CDC's Board decided to either offer the property to the CRA or put it up for sale. The mortgage on the property was appraised at $600,000 and was recorded in that amount. As the CRA owned most of the surrounding properties, the CDC believed it would be in the best interest of the CRA to consider purchasing the property. With the current market conditions and lack of CRA funds, Chair Taylor encouraged the CDC to sell the property. Mr. Hay believed it would be to the CRA's advantage to purchase the property. He suggested Finance Director Susan Harris explore funding opportunities in the budget. Chair Taylor felt if funding prospects were discovered, he would rather they be applied towards the 32 single-family homes for the Ocean Breeze project. Ms. Brooks suggested staff contact Local Initiatives Support Corporation (LISC) to determine if they would be willing to write down the loan. Vice Chair Rodriquez suggested letting the market settle, and the CRA could purchase the property at a later date. Motion Vice Chair Rodriguez moved to deny. Mr. Weiland seconded the motion that passed 4-1 (Mr. Hay dissenting). B. Request for Lot use and Funding for the Heart of Boynton Community Association, Inc.'s 2009 Heritage Awareness Celebration Ms. Bright reported the request was received from the Heart of Boynton Community Association Heritage Awareness Celebration Committee. They requested use of the CRA lots located on MLK Boulevard, and a monetary donation of an amount to be determined by the Board. Their budget, letter of request and map were included with the meeting materials. Motion Mr. Weiland moved to deny. Chair Taylor passed the gavel to Vice Chair Rodriguez and seconded the motion for discussion purposes. Dr. Martha Meeks Light, 225 NW 6th Avenue, advised she was a member of the Celebration Awareness Committee for 2009 and Heart of Boynton Neighborhood Association. The Committee was requesting authorization to use the lots on MLK Boulevard for this year's event. The Committee also contacted the other landowners and received their approval. The event would be held on February 21, 2009, and was 22 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9,2008 intended to raise awareness of the City's multicultural community. The Committee was not in search of funding, but rather a contribution, and was currently in the process of participating in fundraising efforts. While Chair Taylor had no objection to the use of the CRA land, there were no monies budgeted for this event. Mr. Weiland wished to ensure there were no liability issues. Dr. Meeks Light pointed out insurance coverage in the amount of $1 million had been obtained. Ms. Ross inquired whether the land was near the Sims Center. Dr. Meeks Light responded it was near the Sims Center, but not at the Center. Ms. Ross agreed to match Chair Taylor's contribution from her Community Investment Funds. Vice Chair Rodriguez noted he would not have previously supported the program, as he believed the Board agreed to sponsor only two events, the Fourth of July and the Holiday Extravaganza. Ms. Bright noted the CRA had budgeted $5,000 to sponsor Family Fun Day at the Sims Center on February 7, 2008. Family Fun Day events previously held at the Hester Center were outside the CRA district. The events would now be held at the Sims Center which was within the CRA district. Mr. Hay offered to contribute $2,000 from his City Community Investment Funds, but believed, as a measure of good will, monies should be discovered in the budget to support the Heritage Celebration. Vice Chair Rodriguez agreed, but felt the Heritage and Sims events should be combined. Brenda Williams opined both events had been going on in the City for a number of years. The Sims picnic had always been held in August and had now been changed to February. Changing the Heritage Festival would be akin to changing the Fourth of July, as February was designated "Black History Month." Gertrude Sullivan, 201 NE 6th Avenue, would like to see the Heritage Celebration go forward as a number of the schools were involved. She would not want to change the date of the celebration to coincide with the Sims event. Ms. Bright noted there was a possibility of other funding opportunities, and she would report back to the Board with the information. Motion to deny passed 3-2, (Mr. Hay and Ms. Ross dissenting). 23 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9,2008 Victor Norfus, 261 N. Palm Drive, pointed out the request was not for a donation, but for the use of CRA land. Motion Vice Chair Rodriquez moved to reconsider. Mr. Weiland seconded the motion that passed unanimously. Motion Vice Chair Rodriguez moved to allow the use of the land on MLK Boulevard. Mr. Hay seconded the motion that passed unanimously. While the Board believed the celebrations should be held on the same day, it was pointed out the events were sponsored by two separate entities, and they would have to resolve the issue. Bellesheba Edden, 1208 NE 2nd Street, opined the date for the Heritage Festival should not be changed. If the Sims celebration had been held in August, it should continue to be held in August. XIII. Future Agenda items: XIV. Comments by Staff: Ms. Biscuiti provided a flyer for the Oceanfront Concert Series. As Oceanfront Park was not within the CRA district, funds for the Series could not be provided by the CRA. Funds provided by the Auburn Group had been refunded. Ms. Biscuiti requested Board direction to address the City Commission at its next meeting and request the funding for at least the first concert on January 16, 2009. She would also seek additional funds from sponsors. Vice Chair Rodriguez believed the Board previously discussed relocating the event to the Intracoastal property, which was included in the CRA district. Ms. Biscuiti discussed this with Ms. Rivers and Mr. Majors, who indicated they were not in favor of the relocation. Chair Taylor pointed out the location had previously been moved from the beach to Ocean Avenue. However, this did not fare well with the community. While Chair Taylor had no objection to a request for funding from the City Commission, he encouraged Ms. Biscuiti to continue her search for sponsorship dollars. If this was not possible, he suggested the event be canceled. The Board agreed. xv. Comments by Executive Director Ms. Bright read into the record a letter she prepared to the CRA Board addressing issues existing with Vice Chair Rodriguez. A copy of the letter is attached to the original 24 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 minutes of December 9, 2008, and is on file in the City Clerk's Office. In her letter, Ms. Bright requested the Board recommend Vice Chair Rodriguez clearly outline in writing his expectations of her role as Executive Director. Ms. Bright also requested she and Vice Chair Rodriguez attend a mediation proceeding no later than January 15, 2008. XVI. Comments by CRA Board Attorney None XVII. Comments by CRA Board Vice Chair Rodriguez inquired as to the status of a "handshake" agreement with the Two Georges for the use of their restroom facilities, and questioned whether the agreement had been solidified. Mike Simon, Development Manager, indicated both agreements had been signed by the Two Georges and the CRA, and approved by counsel. A copy would be provided to the Board. XVIII. Adjournment There being no further business to discuss, the meeting properly adjourned at 9:51 p.m. Jir:~~ YL- Stephanie D. Kahn Recording Secretary 121008 25