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Minutes 03-10-09 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD ON TUESDAY, MARCH 10, 2009, AT 6:30 P.M. IN CITY COMMISSION CHAMBERS, BOYNTON BEACH, FLORIDA PRESENT: Jerry Taylor, Chair Lisa Bright, Executive Director Jose Rodriguez, Vice Chair Jim Cherof, Board Counsel Woodrow Hay Marlene Ross Ron Weiland I. Call to Order – Chairman Jerry Taylor Chair Taylor called the meeting to order at 6:29 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. A quorum was present. IV. Agenda Approval: A. Additions, Deletions, Corrections to the Agenda None B. Adoption of Agenda Motion Mr. Hay moved approval of the agenda. Mr. Weiland seconded the motion that unanimously passed. V. Announcements and Awards: A. Florida Redevelopment Association Video Lisa Bright , Executive Director, Community Redevelopment Agency, explained they did not have an opportunity to attend the last Florida Redevelopment Agency Conference. The members viewed a 10-minute video about the purpose of Community Redevelopment Agencies. 1 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 10,2009 B. Oceanfront Concert Series - Strictly Business Band - March 20th from 6- 9P.M. Vice Chair Rodriguez left the dais at 6:43 p.m. Vice Chair Rodriguez returned to the dais at 6:44 p.m. Kathy Biscuiti, Special Events Director, announced the next Oceanfront Concert would feature the Strictly Business Band. Parking was available onsite, and continuous trolley service was accessible at Bank of America beginning 5:30 p.m. to 9:30 p.m. Food and beverages would be available. She encouraged everyone to attend. VI. Consent Agenda: A. Approval of Minutes - Community Redevelopment Agency Board meeting February 10, 2009 B. Approval of Minutes - Community Redevelopment Agency Board Special Workshop February 11, 2009 C. Approval of Period-Ended February 28, 2009 Financial Report Vice Chair Rodriguez pulled Item C. D. Approval of Resolution 09-01 for Additional Three Year Term for IT Services E. Approval of Palm Beach International Film Festival Movie Showing F. Approval of Sponsorship from Panera Bread Vice Chair Rodriguez pulled Item F. G. Approval of Sponsorship for the Habitat for Humanity Collegiate Challenge in the Amount of $500 Vice Chair Rodriguez pulled Item G. H. Approval of Sponsorship for Artavox Event Ms. Ross pulled Item H. I. Monthly Procurement Purchase Orders Vice Chair Rodriguez pulled Item I. 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 10, 2009 Motion Mr. Hay moved to approve the Consent Agenda less the items pulled. Ms. Ross seconded the motion that unanimously passed. Item C. Approval of Period-Ended February 28, 2009 Financial Report. Vice Chair Rodriguez requested the budget be reviewed. Susan Harris , Finance Director, advised there were some substantial changes. The February 28, 2009 report did not reflect transfers for debt service and the project fund. There were bills from the Police payroll that she had not yet received. Approximately 42% of the budget was spent over five fiscal months. The early March report showed exactly 58% left. The revenue line item would be short on investment income, which was the interest earned on monies in the bank. The Community Redevelopment Agency would be short $50,000 in revenue necessitating a reduction in expenditures. The marina audit was ongoing and the budget would be short due to fuel sales being less than expected. At the end of the year, the marina expenses would likely balance. There may be $25,000 in the line item, provided unanticipated events did not occur. Department operating expenses were anticipated to realize a savings, as well as the insurance and another line item. Ms. Harris reforecast the budget each quarter and would provide it at the April meeting. The Holiday Parade expenses were budgeted at $30,000. The expenses were not reflected in the Project Fund as opposed to the General Fund. Motion Vice Chair Rodriguez moved to approve Item C. Mr. Weiland seconded the motion that unanimously passed. F. Approval of Sponsorship from Panera Bread Vice Chair Rodrigeuz requested clarification of the item. Ms. Biscuiti explained at a prior meeting, staff was directed to bring prospective sponsors forward. Panera Bread was interested in supplying product at the events and a cash donation. She clarified at this time, she did not know how much money would be donated but she wanted to obtain approval ahead of time. Vice Chair Rodriguez explained the language was the Board would accept donations, contingent on Board approval, when the actual monies were provided. 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 10, 2009 Attorney Cherof clarified the purpose of the methodology was there could be items that would influence the Board’s decision whether to accept the donation or not, which were unique to the time when the donation was given. Down the road, Panera Bread could be seeking a development approval, and funds would not want to be accepted in conjunction with that. Staff was able to accept the donation; however, if the Board rejected the donation, it would be returned. The methodology would not delay acceptance. Ms. Biscuiti was advised she could accept the donation, and bring it before the Board. Motion Vice Chair Rodriguez moved to approve. Mr. Weiland seconded the motion that unanimously passed. G. Approval of Sponsorship for the Habitat for Humanity Collegiate Challenge in the amount of $500 Vice Chair Rodriguez pulled this item because it was a Consent Agenda item, yet it would use monies from the contingency fund. He inquired whether the event should be funded from special events. Ms. Bright agreed it should have reflected the special event line item. Motion Vice Chair moved to approve with the funding coming from the special events line item. Mr. Hay seconded the motion that unanimously passed. H. Approval of Sponsorship for Artavox Event Ms. Ross pulled the item and wanted to highlight the Artavox event was held in different locations each year. This was the first time the event would be held in Boynton Beach, at the Children’s Museum. The Palm Beach County Cultural Council and Palm Beach County Art in Public Places organization were involved in the event. She expressed it was a noteworthy event and it would bring good publicity to the City. Vice Chair Rodriguez commented the item was funded from the special events line item. He requested clarification when the line item would be used, and what the criteria was when an item was before the Board as recommended or not. He felt staff was determining which sponsorships and/or events to support. Other activities, such as the Heritage Festival were not recommended for funding by the staff. 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 10, 2009 The Procurement Policy prohibited the Executive Director from making recommendations to the Board for events over $1,000. It was within her authority to make a recommendation of an event if the money was in the budget when the item is under $1,000; however, the item still had to come before the Board. The Heritage Fest Committee made a request for $5,000 to $20,000 and was an agenda item because Ms. Bright did not have the authority to approve it. Last year, the Heritage event included a concert, an art show, events at the Sims Center, and at the Library. Artavox was not a budgeted event. The holiday event came in under budget and staff wanted to use the funds for something that would showcase the downtown area. The funds were to accommodate the cost of an electrician and police. Food and beverages were donated. Motion Vice Chair Rodriguez moved to approve. Mr. Hay seconded the motion that unanimously passed. a. Monthly Procurement Purchase Orders Vice Chair Rodriguez noted this was the first report to be provided since they raised the approval of $25,000 for the Executive Director. He commented the property at 211 East Ocean was purchased for the Community Redevelopment Agency office and he recalled they were not going to allocate funds for the property. He questioned why they were expending $6,490 on the building. Ms. Bright responded that previously the Board could not consider renovating the building because they could not secure a mortgage. This was due to the Strand Decision. Staff had indicated if the Strand Decision was reversed, they would go back to the Board and request the opportunity to consider taking a mortgage to renovate it. If it was not the intent of the Board to renovate the office building, then the item did not need to be approved. If the Community Redevelopment Agency would have a permanent work environment, staff needed the information regarding the cost to renovate it. Vice Chair Rodriguez noted the contract was signed so the item was contradictory. It was noted Ms. Bright had the authority to sign the contract with REG. If REG conducted value engineering to determine the cost to construct that building, she would bring the document back to the Board. Ms. Brooks explained, for the purposes of budgeting, it would be helpful to ascertain the cost of the building. An estimate from an architect was previously provided for $500,000 but the entire market has since changed. Contractors could advise how to cut renovation costs. The Board had approved a work order with Hedrick Brothers for the work but the order was rescinded at the last meeting. Vice Chair Rodriguez was not in favor or moving forward with the project. 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 10, 2009 Chair Taylor noted the dwelling was built in 1919 and was a historic building. Previously members entertained spending $8 million to renovate a building constructed in 1926. Motion Vice Chair Rodriguez moved to deny any expenses on the property until the budget cycle review where the dollars would be allocated from, and they focus on helping people in the community. There was office space at the marina. The motion died for lack of a second. Motion Mr. Hay moved to approve. Ms. Ross seconded the motion that unanimously passed. VII. Information Only A. Community Redevelopment Agency Policing Activity Report for the Month of February, 2009 and District Statistics for the Months of January and February, 2009 B. Boynton Beach Community Redevelopment Agency and Trolley Website Updates C. Complaint/Comment Log – Monthly Update D. Planning and Development Board Meeting Agenda – February 24, 2009 E. Administrative Policy Manual: Five Important Changes Request F. FY 2009/2010 Appropriation Request Submittal Report G. Holiday parade 2009 Route Update H. Approval of Boynton Beach Community Redevelopment Agency Trolley Ridership Update There were no comments on the Information Only items. VIII. Pulled Consent Agenda Items: This item was addressed earlier in the meeting. IX. Public Comments: (Note: comments are limited to 3 minutes in duration) Chair Taylor opened the public comments. 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 10, 2009 Herb Suss, 1711 Wood Fern Drive, objected to Vice Chair Rodriguez doing something other than viewing the Community Redevelopment Agency video shown earlier in the meeting and advised it was insulting. Lynn Simmons , Splash Down Divers Shop Proprietor, advised there was a need for a paid position at the marina to handle requests for information and services available. She complimented the Community Redevelopment Agency on the marina and advised the public loves it. For the past nine years, she was handling the requests, but now she had to find another job to meet expenses and could no longer assist the public. Ms. Bright agreed to meet with Ms. Simmons to determine what was needed. Mark Karageorge , 240A Main Boulevard, complimented the Community Redevelopment Agency on their special events. He suggested having the Los Lonely Boys at the 2009 Holiday Parade and Concert, as the group incorporates faith, family and fun when they entertain. John Lawrence Jolley , 515 Sunset Road, spoke of his activities, which were nonsensical. He also advised, last week the Commission discussed increasing the cost of water to encourage people to use less water. He expressed his opinion on the matter but explained the City puts chemicals in the water, which were not good. Chair Taylor advised he should attend the City Commission meeting on the 17th, as the matter did not pertained to them. Mr. Jolley insisted the Board listen to what he had to say; however, since proper decorum was not maintained, Mr. Jolley was asked to leave, and escorted out of the meeting by the Police. Chair Taylor closed the public hearing. X. Public Hearing: Old Business: New Business: XI. Old Business: A. Auburn Development, LLC 1. Consideration of Master Development Agreement with Auburn Development, LLC Vivian Brooks, Assistant Director, advised that after the February 11, 2009 community meeting, staff and the legal department received a revised Master Development Agreement, which was different from the prior agreement. The meeting materials contained staff’s notes regarding the agreement and some of the items addressed the 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 10, 2009 third party verification differently than how the Board had directed. The conceptual site plan changed significantly as did the amount of public subsidy requested. The initial RFP response indicated they would only need public dollars for public purpose improvements. Vice Chair Rodriguez left the dais at 7:22 p.m. Staff was seeking policy direction from the Board and legal counsel regarding how to move forward. Vice Chair Rodriguez returned to the dais at 7:23 p.m. Mr. Hay expressed his disappointment with Intown and the 12 months spent negotiating with them. The Board spent 18 months negotiating with Auburn Development. At the community meeting, one theme was heard, which was to eliminate crime. He pointed out, until that occurred, no one would want to move to the Heart of Boynton. He noted only four property owners from the Heart of Boynton area attended the meeting. Auburn Development did not want a third party verification; the Community Redevelopment Agency had no contract with them, and items were changed from meeting to meeting. District II was still suffering. He expressed Auburn was a good company but the current economy made it impossible for Auburn to deliver. Until the economy improved, Mr. Hay saw the relationship between the developer, the City and the Community Redevelopment Agency getting worse before it gets better. He explained the Community Redevelopment Agency could still move forward and accomplish things in the Heart of Boynton immediately. Motion Mr. Hay moved that the Community Redevelopment Agency cease negotiation with Auburn; that staff be directed to immediately hold a community meeting with the property owners of the Heart of Boynton; and they direct staff to develop a plan of what to do with the Martin Luther King development money. Ms. Ross seconded the motion. Vice Chair Rodriguez agreed Mr. Hay raised good points, but advised the project was a large and difficult one. The developer made changes, but he pointed out the community, the Board and the public requested them. When the developers accommodated the request, they were criticized. This was potentially the second developer who would not develop the project and he suggested the Board examine themselves. The Community Redevelopment Agency did not develop anything in Boynton Beach, and would not be successful unless they endured. Mr. Weiland agreed and thought the project should be salvaged. The dollars would be redirected to moving City Hall to another location and redeveloping the current City Hall site. There would be tax credits given. 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 10, 2009 Chair Taylor disagreed. He explained they were looking at a brand new contract, but he was not sure the contract coincided with the RFP that was issued. They could not develop Phase II unless they developed a grocery store and they do not own the land. The store is supposed to be on the north side, and the map showed the structure on the south side. He had no exhibits to the contract and the schedule for the development was subject to change. He agreed with the motion. Cito Berguistrain , Auburn Development, thanked the Community Redevelopment Agency Board for the opportunity to have participated in the process. He indicated they have a long history of affordable housing, and the Board members would be invited to the grand opening of Boynton Bay in Boynton Beach. For the record, Mr. Berguistrain advised Auburn did not say they did not want a third party verification. Auburn had agreed to pay for the verification in the agreement. If the Community Redevelopment Agency wanted to develop its own project and go through the RFP process, it would have to spend its own dollars. A public/private partnership leverages the funds with the funds from the private sector. In Phase II, the Community Redevelopment Agency would have provided $1,920,000 and Auburn would have provided four acres, 120 units of affordable senior housing and a senior center. The cost to develop the project was about $30-$40 million with the Community Redevelopment Agency only paying $1.9 million. Mr. Berguistrain disagreed the economy would halt the project as the stimulus package included credits to the developer offering a higher leveraged ratio. Modifying the agreement was part of the negotiation process; any modifications were made in an effort to satisfy the Board. He explained they were trying to act in good faith, listen to the community, the Board and staff, and deliver a project. Auburn was appreciative of the Board’s discretion in moving forward or not. He advised if it did not, it was not because Auburn kept changing its message or refused a financial review. He requested Mr. Hay modify his motion not to cease negotiation today as many community residents were not present. He suggested having another community meeting to let the community ask the question and advise whether they want the project Gertrude Sullivan , 201 NE 6th Avenue, respected Mr. Hay’s remarks but advised MLK would never be built. Each time a development was close, they were pushed out and something was going on that was not right. She implored the Board to wake up and listen to the community. Keturah Joseph , Executive Director, Boynton Beach Faith Based Community Development Corporation, advised she has been attending the meetings for the past eight months. She expressed her disappointment, as it appeared the Community Redevelopment Agency would make a decision not to do anything in the community. She was doubly disappointed with Mr. Hay’s motion to cease negotiations. Auburn indicated they would pay for the third party financial verification when the contract was signed, and she expressed that was sound business judgment. If units were built, there would be less crime. The Board’s instruction to speak with the property owners was 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 10, 2009 vague and direct staff to use the funds to develop a plan for MLK. She urged the members to reserve the MLK funds for the new plans. Mack McCray, 806 NW 4th Street, applauded Mr. Hay’s motion. He expressed the community did not want a rushed project and the Board should be cognizant the project was not what they wanted. The Community Redevelopment Agency staff is capable and able to deliver. He requested the members step back and allow them to deliver. Victor Norfus , 261 North Palm Drive, advised no other alternatives were brought forward except for the Board’s intentions to develop something in the future. He acknowledged he could not vote for the Auburn policy without a plan or a financial agreement, but it should not be killed either unless they had something to offer them. The Board was not showing leadership. Lee Wische , 1302 SW 18th Street, was in favor of Mr. Hay’s comments as he was watching out for the citizens in District II. His opinion was the developer was not appropriate for Boynton Beach. He quoted articles regarding the Delray Beach Community Redevelopment Agency and the Housing Authority, which indicated Auburn’s relationships with those entities were no longer viable. He explained a project would be built; only the developer would change. He displayed an enlarged newspaper article confirming his statement. Kevin Ballard , 550 NW 13th Avenue, a MLK property owner, inquired if they would ever see a change on MLK Boulevard. He encouraged moving forward. Herb Suss , 1711 Woodfern Drive, was in agreement with the motion and advised there were 75 property owners unwilling to sell their property at market value. Two Commissioners at a recent meeting in the MLK area left the meeting and did not hear the comments of the residents. Additionally, a lobbyist was involved in the project and that cost would be included in the development cost. He was in favor of developing the MLK corridor. He suggested issuing another RFP and urged the Board to vote the project down. Brian Edwards , 629 NE 9th Avenue, recommended slowing down and thinking about the matter before voting. He observed chastising and nit picking instead of addressing the issue and felt there was room for discussion. He attended the meeting and only four residents living in the project area attended. The Community Redevelopment Agency Board had discussed the safety measures built into the contract. He opined the developer should have jumped on the financial agreement and not doing so gave an impression something was hidden. The Board and staff had to take some leadership and oversight of developers. If the company was worth negotiating with, there should be room for more negotiation. If not, then it should be shared with the public. He added the staff was excellent and he was upset to hear the staff talked down. Nancy Chandler , 914 NE 7th Street, indicated a good attorney could write an airtight contract. She read every Master Development Agreement and indicated it did not 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 10, 2009 protect Boynton. She attended the last meeting, and the only thing that changed was the tall buildings were removed. She did not understand why the deal was falling apart. She suggested someone watch the developer and ensure Boynton Beach was protected. Chair Taylor closed the floor to public hearing. Chair Taylor agreed with Mr. Hay’s motion. With regard to the third party financial verification, Chair Taylor clarified Auburn originally agreed to pay $14,000, but they did not like the party. They got another party at $70,000, and Auburn agreed to pay up to $15,000 after an agreement was signed. So far, the Board spent $17 million in the Heart of Boynton. The Community Redevelopment Agency, the City and the developer still had to obtain the land and it may not be possible as some owners were asking absurd amounts of money. Property owners could not be forced to sell. They could do something with the land from individuals who did want to sell, such as infill housing, or a grocery store which could help to remove bad elements; however, the earliest anything would have occurred on the development was three years down the road, after Auburn received their tax credits. There were many holes in the contract and the Community Redevelopment Agency was responsible for a lot of money. Chair Taylor expressed the Community Redevelopment Agency would make something happen and would ensure the money remained for a project. Vice Chair Rodriguez felt the effort they put forward over the last 18 months was worth pursuing. He indicated the financial reviews were not the same. Vice Chair Rodriguez also took exception to Mr. Wische’s comments and publicly responded Mr. Wische bashed Auburn but was seen sitting with Jim Comparato, the developer who wanted to do the project. The residents in District II were going to suffer because of the politicking that was occurring. The constituents want development and the developer did what was asked. He respectfully requested Mr. Hay put a timeline to the request. Chair Taylor explained although the Vice Chair left the meeting at the Sims Center, the discussion was the developer would deliver something at the Community Redevelopment Agency meeting and the public was advised that the Board would decide whether they would move forward with the developer or take the project on by themselves tonight. Ms. Ross received confirmation that Nancy Chandler and Brian Edwards were from INCA. She received an urgent email from someone from INCA indicating the agreement was reviewed and should not be supported due to a clause it contained. Ms. Ross was also frustrated. The negotiation process was extremely difficult and the agreement unacceptable. After a period of months, her sense was it must stop. As a Community Redevelopment Agency Board member, she takes her responsibilities seriously. She was aware the crime issue was a priority and 75 landowners did not want to sell their property. The Community Redevelopment Agency was not ready to sign a contract with Auburn. 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 10, 2009 Vote There was a vote on the motion that passed 3-2 (Vice Chair Rodriguez and Mr. Weiland dissenting.) 2. Review of Board Direction Regarding Third Party Financial Verification of Master Development Agreement with Auburn Development, LLC. Vice Chair Rodriguez requested the record reflect that they were not informed of the differences between the two financial reviews. B. Mangrove Maintenance RFP 1. Review of Responses and Ranking 2. Selection of Contractor 3. Approval of Contract Between Community Redevelopment Agency and Environmental Design South Last month the Board rescinded the contract with Native Technologies and staff was given permission to issue an RFP. Seven responses were received, which were ranked and aggregated. Staff recommended using Environmental Design South and advised by doing so, they would save money in the budget over the next two years. Jaycee Park and part of the Promenade were the areas needing to be serviced. A short discussion of an email sent by Ms. Brooks to Native Technologies was held. Native Technologies would not pick up the certified mail staff sent terminating the contract. Ms. Brooks sent them an email with a letter attachment advising them they were served. Attorney Cherof advised service via e-mail was a means of substitute notice. Motion Mr. Hay moved to approve Environmental Design South. Vice Chair Rodriguez seconded the motion that unanimously passed. C. Consideration of Approval to Issue a RFP to Solicit Bids from Contractors for the Boynton Harbor Marina Slip Renovation Project Mike Simon , Development Manager, reviewed the item. On October 14, 2008, the Board approved a work order to issue an RFP to solicit bids from contractors to perform the slip renovation project at the Boynton Harbor Marina. MSCW provided staff with assistance in writing the RFP and would oversee the pre-bid conference, provide technical assistance to bidders and review and rank the respondents. Staff recommended issuing the RFP and anticipated the amount would be between $450,000 to $650,000. 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 10, 2009 Motion Vice Chair Rodriguez moved to approve. Mr. Hay seconded the motion that unanimously passed. D. Consideration of Work Order #08-0203 with MSCW in an amount of $622.671 Mr. Simon presented the item and explained the Board approved the Conceptual Marina Master Redesign and Master Development Plan in June in 2008. A PowerPoint presentation on the plan was given. Ms. Ross left the dais at 8:43 p.m. The recommendation from staff was to work with MSCW. They solicited prices from sub-contractors, and accelerated the process to obtain bids from different architects and engineers in order to retain a firm with the tightest and smallest budget. The project could range from $4.5 million to $6 million and could have a seven to nine month design period. Vice Chair Rodriguez felt they were spending a lot of money for the drawings. It was noted drawings comprised between 8%-12% of the estimated project cost. It was noted many individuals go to an area in east Boynton that does not have any attractions except for the water. Vice Chair Rodriguez inquired if they were focusing on the wrong area, and if the monies might be better spent connecting the waterway with the Town Square area. Ms. Ross returned to the dais at 8:47 p.m. Ms. Bright explained the project was one of two projects slated for federal stimulus funds, which required drawings be ready to go. The Florida Department of Transportation was seriously reviewing the MLK/Seacrest design, which was the #2 project the City Commission approved. Drawings were needed in order for the marina to be considered for federal stimulus monies. The funds for the drawings would be expended from county grant funds. Vice Chair Rodriguez contended that if they did not receive the federal funds, the monies would be for naught. Additionally, he noted the City Commission has not acted on the Downtown Master Plan and it may be changed. Mr. Simon reviewed how the grant would be used and emphasized they were applying for grants to offset the cost of the slips. 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 10, 2009 Mr. Suss inquired if the any consideration was given to the fuel pumps and the no wake zones. Staff responded the Police were present it was monitored. Attorney Cherof advised Exhibit A of the Schedule of Rates and Director Costs contained an unusual provision that “in cases where overtime work is performed by hourly paid employees, it shall be billed at time and one half.” He advised the provision was not ordinarily found in this type of agreement and recommended it be stricken. Regarding the General Conditions to the agreement, Exhibit B indicated if there were any dispute, it would be resolved in the courts of Orange County, Florida. Attorney Cherof recommended changing the language to reflect it would be resolved in the courts of Palm Beach, Florida. Motion Vice Chair Rodriguez moved to approve with the elimination of the time and a half and the removal of Orange County and to include Palm Beach County. Ms. Ross seconded the motion that unanimously passed. Mr. Hay commended staff for the outstanding job they did with the redevelopment plan. He requested staff maintain the same level of enthusiasm for the projects in the Heart of Boynton. E. Consideration of Request for Funding the Graffiti Art project – TABLED February 10, 2009 Motion Ms. Ross moved to remove from the table. Mr. Hay seconded the motion that unanimously passed. This item was tabled last month pending Attorney Cherof’s research for a funding source. His research indicated funds for the project were not an option. Debby Coles-Dobay , Public Art Administrator, explained the mural was a great project for the Community Redevelopment Agency because it involved the Heart of Boynton Community. She provided details about how and where the funds would be spent. Information on the Philadelphia project, which was a similar effort, was distributed. Vice Chair Rodriguez felt funds should be taken from the special events line item as opposed to contingency. Mr. Hay felt the expenditure was not appropriate at the time. Ms. Harris confirmed there was $1,600 left in that line item and there would be a surplus but it was unknown what the surplus would be. She did not think it would be prudent to use the funds at this time. There was discussion the project was more of an initiative as opposed to an event. 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 10, 2009 Motion Vice Chair Rodriguez moved to approve the item using the Special Events line item budget. The motion died for lack of a second. Ms. Ross expressed the Community Redevelopment Agency was unable to fund the Heritage Festival and she was concerned. Ms. Bright responded they provided $5,000 to fund the activities that typically occurred during the Heritage Fest, which was the Family Fun Day. It was noted the Family Day at the Sims Center was upcoming. There were unencumbered funds in the budget. Vice Chair Rodriguez pointed out, the Board does not approve $10,000 projects; but approves 20 - $500 projects as recommended by the Director, which was not fair. Ms. Ross noted the Dumpster Art program was approved. Ms. Bright clarified the Arts Commission budget was reduced. She indicated the item was at the discretion of the Board. Since the budget would be reforecast, there was consensus for staff to see if they could find the funds for this project. Motion Vice Chair Rodriguez moved to table. Mr. Hay seconded the motion that unanimously passed. F. Discussion of Community Redevelopment Agency Owned Property Located at 201 NE 1st Avenue Mr. Simon explained the item was a discussion item. It was the Vice Chair’s understanding the Community Redevelopment Agency purchased the home and that it would be demolished for parking when the owner vacated. Vice Chair Rodriguez indicated Mr. Blasie had advised him the Community Redevelopment Agency was redeveloping the property, which was contrary to what he was told. The Downtown Master Plan was approved and the June 12, 2007 meeting minutes were referenced. Mr. Simon explained the intent of the purchase was for parking, but not at the immediate moment. The acquisition was to be land banked. The land would be paved and the home moved to another parcel. The property was part of the Town Square Plan, which included an Art and Historic District along Ocean Avenue. The structure was on the City’s historic preservation list, had not been updated, and was original. The home could be clustered with other old 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 10, 2009 homes, creating a district along Ocean Avenue connecting the Library and the marina. The intent was to create a mall effect with an anchor on each end. Mr. Hay suggested painting the home. Mr. Simon agreed and explained there was a budget for maintenance. The item was put on the agenda so the Board would be aware of the Community Redevelopment Agency’s plans for the property. Motion Vice Chair Rodriguez offered a motion to move forward with the small project rehab (painting, mulching and making it Code compliant.) Mr. Hay seconded the motion that unanimously passed. G. Consideration of Appropriating Additional Funds for the Residential Improvement Program Ms. Brooks explained there was discussion between staff and the Vice Chair regarding whether the program was effective. There was very little money left for the program and they had applicants remaining. They also have not received many qualified applicants outside the Heart of Boynton. She did not want to market the program unless there would be funds available. Vice Chair Rodriguez preferred when staff reviewed the budget for the graffiti art project, they do the same for this program. It was a key program and was an opportunity to assist people with their homes. H. Consideration of Splash Down Dive Shop Lease Renewal Mr. Simon advised the current tenant, Lynn Simmons, pays $1,597 per month, taxes included for her dive shop at the marina. No capital improvements were made to her building, other than painting. Options to renew the lease were provided; however, it was recommended the lease be renewed on a one-year renewal basis. Ms. Simmons advised she was excited about the development of the marina and she wished to stay as she has been in business for 25 years. When the marina was under construction, she assisted the public by providing information to them and lunch to the construction crews. Motion Vice Chair Rodriguez moved to renew the lease for a one-year term at the current rate. Mr. Hay seconded the motion. Ms. Ross inquired if the current rate was $1,500 per month. Ms. Simmons responded the rent was difficult as her business dropped about 70%. The dive shop across the 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 10, 2009 street recently closed and any assistance the Board could provide would be appreciated. Motion Ms. Ross made a substitute motion to renew the lease for the term of one year at the adjusted rate of $1,250. Vice Chair Rodriguez seconded the motion that unanimously passed. XII. New Business: A. Consideration of Purchasing Property located at 111 NE 9th Avenue At the February 11, 2009 Community Redevelopment Agency workshop, Mr. Berguistrain indicated staff could purchase property within the MLK area and deduct it from the amount due Auburn under the Development Agreement. A major obstacle in developing the MLK area was not having enough property to develop. The land was not contiguous and three or four acres were needed for development. Staff contacted two property owners in the Seacrest and MLK area, who were not under contract. The owners asked for a firm $300,000. A narrative appraisal had more detail than a typical appraisal and using the narrative was suggested. The cost would not exceed $1,200. Staff would use the narrative as a benchmark and bring recommendations to the Board. The zoning on this parcel was different, and there were other properties along the road that were similar. Additionally, narrative appraisals were used when the City and staff were discussing swapping property it owned on MLK. Staff needed the information to develop a work project. Vice Chair Rodriguez commented the Community Redevelopment Agency Board allowed individuals to purchase property at inflated prices and he suggested holding the line. Mr. Hay acknowledged staff needed a good baseline. Obtaining a narrative appraisal would help staff formulate a work plan with the MLK money. Motion Mr. Hay moved to direct staff to obtain a narrative appraisal. The motion was duly seconded and unanimously passed. B. Consideration of Purchase Agreement for Two Lots on NE 9th Avenue Ms. Brooks reported the owner had been offered about $325,000 for the two lots through eminent domain and he agreed to sell the lots for $275,000, about $20.83 per foot. The purchase agreement was contingent upon a clean environmental assessment, a clear title, and an appraisal that would support the purchase price. The environmental 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 10, 2009 assessment was about $1,200, which the Community Redevelopment Agency was required to pay. The Board Attorney recommended a Phase I appraisal be conducted, which staff does as a best practice. The contract had a clause that, if the appraised value was lower, the closing did not have to go forward. Ms. Bright advised directing staff to move forward with this was another step in the plan that Mr. Hay made in his earlier motion. The funds would be taken from the MLK Land Acquisition line item. Motion Mr. Hay moved to purchase the lots based on the appraisal and on the environmental. Ms. Ross seconded the motion that unanimously passed. XIII. Future Agenda Items Ms. Bright advised staff would try to develop a strategy to address the portion of the motion made by Mr. Hay as a beginning discussion. XIV. Comments by Staff None XV. Comments by Executive Director None XVI. Comments By Community Redevelopment Agency Board Attorney Attorney Cherof suggested staff include new language in the RFP. The respondents would be required to show how the funding would make its way into either creating or keeping jobs in the community. In this manner, the Community Redevelopment Agency could track their dollars, in terms of job creation and survival. There was agreement language would be developed and brought to the next meeting for review. XVII. Comments by Community Redevelopment Agency Board Vice Chair Rodriguez explained at a meeting, a citizen in District II talked about land owned by the Community Redevelopment Agency on which Code violations exist. A report he received indicated about half the Community Redevelopment Agency properties had Code violations. Ms. Bright reviewed the report but had not analyzed the ratio of Community Redevelopment Agency properties to City properties. Regular clean-up funds were budgeted, but the issue has been a continuing problem as properties are cleaned, and shortly thereafter, are dumped upon. 18 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 10,2009 Mr. Simon responded they would continue with the regular monthly mowing. He advised the report noted one item was for an overgrown tree, and further advised staff had not been notified by Code Enforcement of any violations or liens. Mr. Simon explained they could hire more contract vendors to pick up the trash. They maintain the properties and if Code Enforcement advises there are instances of dumping, they address it. XVIII. Adjournment There being no further business to discuss, the meeting properly adjourned at 9:50 p.m. -' I (I r '/ . ,'('ll . . ^ 11 ...Jl t- Lt': t Itl. ...f.~;LJU,.J. Catherine Cherry ( Recording Secretary 031109 19