Loading...
Minutes 12-08-09 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD TUESDAY, DECEMBER 8, 2009, AT 6:30 P.M. IN CITY COMMISSION CHAMBERS, BOYNTON BEACH, FLORIDA PRESENT: Jerry Taylor, Chair Lisa Bright, Executive Director Woodrow Hay, Vice Chair Jim Cherof, Board Attorney Jose Rodriguez Marlene Ross Ron Weiland I. Call to Order – Chair Jerry Taylor The meeting was called to order at 6:30 p.m. II. Pledge to the Flag and Invocation Vice Chair Hay offered the invocation followed by the Pledge of Allegiance to the Flag. III. Roll Call The Recording Secretary called the roll. IV. Agenda Approval A. Additions, Deletions, corrections to the Agenda None B. Adoption of Agenda Motion Mr. Weiland moved to approve the agenda. Ms. Ross seconded the motion that passed unanimously. V. Announcements & Awards: A. Small Business Development Program Orientation – December 10, 2009 1 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida December 8, 2009 Kathy Biscuiti, Special Events Director, announced the Small Business Development Program orientation would be held at the Carolyn Sims Center on Thursday, December th 10, from 6:00 p.m. to 7:00 p.m. The three-month program will be administered by the TED Center of Delray Beach and will run continuously. County Commissioner Priscilla Taylor and FPL's Tony Newbold, who is also Board President of the TED Center, will serve as guest speakers. The program is currently limited to 25 students per class and registration has been successful to date. Lisa Bright, Executive Director, noted staff had allocated $30,000 in the CRA budget in anticipation of the CRA Board changeover. A favorable turnout for the program was anticipated, and it appeared the continuous operation of the program would exhaust the funds allocated for this purpose. It was noted that pursuant to the 2010 schedule, Classes A, B, C and D will run from January through March. Ms. Biscuiti announced the annual Holiday Boat Parade, scheduled for Friday, December th 11, commencing at 6:30 p.m. All boats will converge at the Boynton Inlet and continue on south to the C-15 Canal. The parade could be viewed from the Boynton Harbor Marina. Food and beverages will be available for purchase. The judges include: ?Jim Williams of JMWA Architects and incoming Chair for the Chamber of Commerce; ?Chuck Magazine, the City's Risk Manager; ?Tim Burger, a disc jockey with WIRK; and ?An avid boater (his name was not provided) who has worked on the Boat Parade committee for several years. There would be no VIP section for City officials. Two Georges Restaurant will be setting up outdoor tents and will offer food and beverages for purchase at reasonable prices. CRA staff will also set up tables and chairs. A large waterfront area will be available for viewing. The Toys for Tots drive will coincide with the Boat Parade, and it was hoped all attendees would bring toys. Letters were sent to all citizens residing along the water in the hopes that they would donate toys as well. Sea towboats would pick up the donations from residents' docks. 2 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida December 8, 2009 Mr. Rodriguez had spoken with "Steve," at Two Georges. Steve had advised that the CRA requested two tables, one for the CRA and one for the Chamber, and he assumed the CRA table was intended for the CRA Board. Ms. Biscuiti indicated tables would be provided for the Boynton Chamber of Commerce, the Boat Parade committee members and the judges. Ms. Bright commended Ms. Biscuiti for her excellent work on last Saturday's very successful Holiday Extravaganza. She also noted the CRA offices were already filled with toys for the toy drive, and she credited Ms. Biscuiti and Ms. Majoy for this early success. Chair Taylor attended the concert and commended staff for a superb job. Despite the rain and chill in the air, the turnout was wonderful and the concert was a tremendous success. VI. Consent Agenda: A.Approval of Minutes – CRA Board Meeting - November 10, 2020 B.Approval of Period ended November 30, 2009 Financial Report C.Monthly Procurement Purchase Orders D.Approval of Sponsorship for the Habitat for Humanity Collegiate Challenge in the amount of $500 E.Approval of Sponsorship for Special Events from Rick Lococo - $2,000 F.Approval to submit Water Taxi Facilities Grant application G.Approval of CRA Community Committee Meeting Process H.Approval of CRA district 2008-2009 Comparison Police Stats This item was pulled by Ms. Ross for discussion. I.Approval of Survey for Consideration of Modification of Branding This item was pulled by Mr. Rodriguez for discussion. J.Approval of DMP 5-Year Action Plan Update 3 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida December 8, 2009 This item was pulled by Ms. Ross for discussion. K.Approval of Funding for Ralph Desir up to $50,000 from HAP Motion Mr. Weiland moved to approve the consent agenda, with the exception of those items pulled for discussion. Vice Chair Hay seconded the motion that passed unanimously. VII. Pulled Consent Agenda Items: H. Approval of CRA District 2008-2009 Comparison Police Stats Ms. Ross brought this item to the Board's attention as she felt the information was important. She highlighted statistics contained in the staff report which noted that southern CRA crimes over the past year had been reduced by 2.7%. Matt Immler, Police Chief, advised the City Commission had been receiving emails from residents in the southern portion of the CRA district regarding an increase in crime and concerns that crime would worsen. Statistics are reviewed by the Police Department almost daily in order to combat crime. Chief Immler had previously provided Mr. Rodriguez with a Comstat (computer statistics) report which compared a two-week period in the current year with a two-week period in the previous year. Statistics were viewed as a predictor as to where a problem might occur rather than as a "report card" reflecting the Police Department's performance. Comstat is a method by which a police force is deployed based upon hard evidence. The Police Department holds weekly Comstat meetings to review crime statistics, intelligence, neighborhood complaints and any other information that might be pertinent to the community. A decision is then made as to deployment. Holiday deployment is currently being addressed and, as such, most of the discretionary patrol is deployed in the Mall and other shopping areas along Congress Avenue. Chief Immler explained flex forces in the City were comprised of the CRA Police unit and Community Action Team (CAT). The flex forces are utilized to their maximum capability and are immediately deployed where needed. CRA staff provides a monthly report to the Board reflecting projects such as search and seizure warrants and neighborhood complaints which also are addressed immediately. One of the larger cases involving the CRA Police unit pertained to burglaries in the southern part of the City. A number of arrests had been made as reflected in the report. Ten more arrests were made this year over the preceding year. Another case in which the CRA unit was involved pertained to an arrest made of the owner of the Atlantic Lodge. The owner had been 4 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida December 8, 2009 involved in fencing stolen property. The CRA Police units had been able to recover stolen goods through the use of surveillance, informants and other undercover capabilities. While a conviction was handed down last week, the Police unit was still attempting to take possession of the property. The comprehensive report reflected a decrease in crime in the southern end of the CRA district. While a similar decrease was observed in the City overall, decreases or increases in the 2%, 3% or 3.5% range were considered more of a normal crime fluctuation. Chief Immler noted crime was currently 17.5% lower than in 2004, shortly before he became the Police Chief. Mr. Rodriguez opined that notwithstanding the statistics provided, he had been receiving a deluge of emails and telephone calls from citizens in the southern portion of the City where crime apparently had not been reduced. He asked that the Police Force continue its proactive stance. Chair Taylor felt the Police Force had been proactive, as witnessed by the arrests made relating to the motel and strip club operations. Additionally, holiday deployment at the mall and along Congress Avenue resulted in little, if any, criminal activity last year. Unlike the cities of West Palm Beach, Boca Raton and Delray Beach, when a crime is committed in Boynton Beach, the perpetrators are apprehended and arrests are made. Chair Taylor commended the Police Department for a superb job. Vice Chair Hay concurred with Chair Taylor, adding the Police Force has continued to do a phenomenal job. Vice Chair Hay had been advised that District II was perceived as a high-crime area. Chief Immler explained that District II was not a high-crime area, but rather a high-call area. Vice Chair Hay suggested measures be taken to correct misperceptions regarding District II. Ms. Bright added that in addition to the crimes and arrest statistics set forth in the monthly reports provided to the Board, calls-for-service statistics were also included by Sgt. DeGuilio. Motion Ms. Ross moved to approve item H. Vice Chair Hay seconded the motion that passed unanimously. I. Approval of Survey for Consideration of Modification of Branding Mr. Rodriguez referred to the Board's action at the last meeting directing staff to explore the renaming of the downtown area. Mr. Rodriguez did not believe there was 5 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida December 8, 2009 any value or incentive in renaming the area "Old Towne." Additionally, a cost factor would be involved as reflected in the staff report. Motion Mr. Rodriguez moved that the Board deny moving forward with this at all and leaving things as is. Chair Taylor seconded the motion. Ms. Ross was not firm with renaming the area "Old Towne." However, she was eager to obtain feedback from the business community and believed an identity was important. An undefined area would be more obscure. She had observed what Palm Beach County, as well as what other states and cities had done and believed it would be very effective to have a certain brand, not only from a marketing perspective, but from an overall community sense as well. Mr. Weiland could not agree to move forward at this time but could do so after the downtown was more established. Vice Chair Hay agreed he could consider moving forward with this issue when the time was right. The motion passed unanimously. J. Approval of DMP 5-Year Action Plan Update Ms. Ross brought this item to the attention of the Board and wanted to ensure the major updates were noted. Ms. Ross noted the brownfield resolution excluded mixed- use districts within the Central Business District at Ocean Avenue and Federal Highway. The exclusion would also prohibit property owners from drawing down the job creation tax credit incentives and 6% sales tax construction tax credit incentives. The CRA would have to bear part of the cost to assist property owners. Ms. Ross wanted to be sure the Board was aware of this as she believed the Board would be asked to reconsider the brownfield issue. Ms. Bright believed there appeared to be a good deal of confusion about the Central Business District area in the Downtown Master Plan. She noted the area stretched all the way to MLK Boulevard and just south of Ocean Avenue. Previous discussions included whether to include a historic district in the area. If the CRA were to support the developer of the Bank of America site, the CRA would be responsible for the cost of the brownfield designation or for assisting the developer in terms of incentivizing the particular area. Ms. Bright requested the Board take a position with the Downtown Master Plan. There would not be much she could do in a particular budget year if the Board did not 6 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida December 8, 2009 appropriate monies for the Downtown Master Plan activities. The commercial activity areas at Seacrest and MLK Boulevard were readily available tools for the development community and every source of funding was necessary. Ms. Bright noted residents' concerns with the eminent domain process. She advised that legislation had been signed by Governor Bush on May 11, 2006 prohibiting the eminent domain process. Pursuant to Amendment 8, private property could not be taken without a vote of three-fifths of the Legislature. As such, Ms. Bright wanted to ensure residents were aware that the process was complex and against the Constitution of the State of Florida. She also wished to dispel the misconception that the CRA would take private property for public redevelopment. Vice Chair Hay believed clarification was needed before proceeding. He did not wish to block existing development. However, in reviewing the brownfield map, he felt there were too many unanswered questions with regard to properties to be declared brownfields. He noted the brownfield areas were limited to commercial and industrial uses. Vice Chair Hay suggested the CRA Executive Director and Legal Department review this further. Mr. Rodriguez indicated the map was not comprehensive. The resolution adopted by the Board was limited to commercial and industrial zoned parcels. He agreed with Vice Chair Hay that further work was necessary on this issue, but believed this should be left to the City Commission to handle. Ms. Ross reviewed the 13 major action plan updates as set forth in the staff report, which she believed were important. She requested clarification with regard to the enterprise zone. Ms. Bright advised the enterprise zone was similar to a brownfield designation with incentives included. Unfortunately, however, the Governor had not designated any city in the State of Florida an enterprise zone for the past two years and his office did not anticipate any such designation would be considered in the near future. Ms. Bright requested that Ms. Harris advise the Board as to the amount of funds allocated for the enterprise zone. Susan Harris, Finance Director, advised $20,000 had been designated for the enterprise zone. Ms. Bright requested that if the City Commission were to table the enterprise zone issue, CRA staff would request direction from the Board to reallocate the funds for any individual property owners for whom a brownfield designation would be helpful. 7 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida December 8, 2009 Vice Chair Hay requested a "ballpark" figure for the cost of a brownfield inspection report. Ms. Bright advised the cost would depend upon the legal work and surveying required. However, she felt $20,000 would be helpful with regard to several of the properties that would require a brownfield designation within the CRA. She would keep the Board apprised of anyone wishing to work with staff and legal counsel on the issue. Chair Taylor inquired whether any Board member wished to make a motion to transfer the enterprise zone funds which would not be utilized. Motion Ms. Ross made a motion to move the enterprise zone funding to brownfield designation funding as needed. Vice Chair Hay seconded the motion. Ms. Bright clarified the monies would be used for remediation and to remove the brownfield barrier in order to take advantage of the job creation tax incentives and the 6% savings on the construction costs needed for the brownfield designation. Vice Chair Hay inquired whether the Downtown Master Plan included the Seacrest and MLK corridors. Ms. Bright replied in the negative, adding one of the intentions under the Economic Development Five-year Action Plan was to include a brownfield designation to create redevelopment incentives. If the Commissioners approved the designation, they would determine where in the CRA district they wanted the designation. Additionally, an overlay district could be created, allowing any individual to opt out. If the brownfield designation were not approved by the Commission, each parcel would have to be individually surveyed by CRA staff, with the necessary expenses incurred. Ms. Bright noted staff had attempted to have the entire CRA area designated a brownfield in 2008, and a presentation to that effect had been provided in March 2008 by Greg Veday of the Treasure Coast Regional Planning Council. In May 2008, the City Commission voted unanimously to abandon the brownfield designation. This year, Buck Buchanan, as President of the Chamber, asked that the CRA revisit the brownfield issue. Ms. Bright noted staff was currently aware of two sites that would need assistance, and she would appreciate the ability to work with the individuals immediately if possible. Vice Chair Hay would support staff's request. However, he was not comfortable with designating only District II as a brownfield area, as reflected in the map. He felt there had to be areas other than District II that needed brownfield tax credits. Chair Taylor pointed out that the map before the Board was not comprehensive and at the last City Commission meeting, the Commissioners had been provided with a map of 8 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida December 8, 2009 the entire CRA area with all of the designations included. He reiterated the Board would not be voting on the brownfield designation. The motion would allow the $20,000 to be used as a tool for the CRA until the City Commission made a determination regarding the brownfields. If the brownfield designations were approved, the funds could be reallocated by the Board at a future meeting. The motion passed unanimously. VIII. Information Only A.CRA Policing Activity Report for the month of November 2009 and District Statistics for the months of October and November 2009 B.Public Comment Log Monthly Update C.CRA Media D.Economic Development Activity Report IX. Public Comments: (Note: comments are limited to three minutes in duration) Victor Norfus, 261 N. Palm Drive, believed Quantum Park and MLK Boulevard had previously been designated enterprise zones. While Quantum Park had been developed, MLK Boulevard had not. He was not certain why staff had discussed bringing back an issue that already existed. Secondly, he did not believe the brownfield issue had been discussed at any of the community meetings, and he contended no one was aware of the issue. Chair Taylor explained the brownfield issue had been discussed at a number of meetings and citizens from Mr. Norfus' community had commented on the issue, both positively and negatively, at the meetings. Ms. Bright believed confusion existed with regard to the motion made in March calling for staff to hold a public meeting immediately in order for the community to provide input as to the manner in which the $1.6 million should be spent. On May 12, 2009 the Community Committee's recommendations were brought forward by CRA staff and approved by the CRA Board. Ms. Bright noted the issue had been discussed for two years and was included in the Five Year Master Plan. Currently, however, the issue was at the Commission level. The Citizens Community Committee meetings were a means of imparting information to the community. The last Citizens Community Committee meeting held October 12th focused on the Heart of Boynton and those issues were 9 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida December 8, 2009 being addressed as part of the overall work program approved by the Board on May th 12. The agenda for that meeting reflected discussion on the Downtown Master Plan Five-Year Action Update and "Economic Development-The Brownfield Designation th Program." Chair Taylor added the matter would be addressed at the December 15 City Commission meeting. Vivian Brooks, Assistant Director, noted the economic enterprise zone referred to by Mr. Norfus was not the enterprise zone referred to by Ms. Bright. The previous designation was targeted toward industrial uses and was not a Florida enterprise zone. Victoria Castello, 406 Seacrest Blvd., inquired of Attorney Cherof whether he had observed any inconsistencies in the CRA Agency Board's actions and statements at the November 10, 2009 meeting regarding the Downtown Master Plan and their statements and voting record as City Commissioners at the November 17, 2009 meeting. Attorney Cherof replied that he had not, adding Ms. Castello was referring to two separate legal entities -- the City Commission and the Community Redevelopment Agency Board, each of which had its own goals and missions. Ms. Castello suggested Attorney Cherof contact a former City Attorney and Mayor with regard to a lawsuit levied against the City that resulted from a "flip-flop." Steven Drucker, Village Homemade Ice Cream, noted he and a partner had purchased a retail condominium at Marina Village several years ago at the time of the downtown revitalization. The property was secured by a mortgage. Mr. Drucker and his partner had opened an ice cream shop and obtained grants in the amount of $50,000 from the County and $50,000 from the CRA. The business failed as a result of the economic downturn, and the bank was prepared to foreclose on the property. Bank officials were willing to do a short sale provided the partners could reach an agreement with the CRA and the County. The appraised value of the business was less than 50% of what the partners owed. Mr. Drucker noted he was personally on the verge of bankruptcy as well. Ms. Brooks noted the County's grant had been provided pursuant to an economic development program. However, the County stopped providing the grants two years ago as a result of the economic crisis. Ms. Brooks noted the CRA was responsible for the entire $100,000 as the grants were tied to the creation of jobs. Ms. Brooks had anticipated receiving a proposal from either Mr. Drucker or the bank with regard to the indebtedness. She suggested Mr. Drucker appear before the Board with the proposal as she was not authorized to make policy decisions. Mr. Drucker acknowledged he did not have a proposal at this time. He confirmed that the lender's attorneys were taking measures to begin the foreclosure process. It was 10 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida December 8, 2009 believed once the foreclosure process had been finalized, neither the City nor the CRA would receive any monies. Attorney Cherof informed the Board that Ms. Brooks was correct. The first step was for either of the parties to provide a written proposal as to the action they feel should be taken by the Board with respect to reducing the indebtedness. Mr. Drucker advised the bank was expecting to do a short sale. The bank officials believed that with all the foreclosures pending, it would be 18-24 months before they could foreclose. While the bank officials would rather dispose of the property at a reduced rate, the encumbrance of the CRA lien prevented them from doing so. Ms. Brooks noted the lien would be repayable if jobs were not created. For new businesses replacing out-of-business operations, the County allowed the CRA to count those new jobs toward the job creation obligation. If an agreement could be reached with the CRA, it would enhance the bank's ability to sell the property and equipment. Pursuant to the request of the Board, Mr. Drucker would provide a letter from the bank. Attorney Cherof inquired whether the property or the business was the subject of recent ongoing litigation. Mr. Drucker responded neither he nor his partner had any problems other than the inability to operate a successful business. Mark Karageorge, 240A Main Boulevard, requested the CRA move forward with the brownfields, enterprise zones and transit district initiative which were necessary in order for the City to become a destination point. He believed it was important to provide the CRA with the tools necessary to establish economic development. With regard to the brownfields, it was known that owners of a particular business were prepared to open in District III, and this would create 200 jobs. However, in order for this to happen, a brownfield designation was needed. No one else having come forward, the public comments were closed. X. Old Business: A.Consideration of Environmental Clean-up – 1002 MLK Blvd./Betty's Place Ms. Brooks noted the CRA had been under contract with Mr. and Mrs. Roberts for their property at the corner of MLK and Seacrest Boulevards. The property was commercially zoned. Due diligence had been completed with a Phase I environmental assessment which indicated a gas station was formerly located on the site. Thereafter, a Phase II environmental assessment was conducted and while a tank was discovered, no soil or water contamination had been detected. The tank measured 8" x 4" and contained a bit of petroleum. The DEP (Department of Environmental Protection) recommended the 11 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida December 8, 2009 petroleum be removed and a tank closure be performed. The cost for the removal and disposal of the tank would be approximately $15,000. The average "Mom and Pop" operation could not afford to purchase the property, set up the business and have the environmental remediation performed. As such, the CRA would clean up the property and prepare it for development. As the tank cleanup would disrupt the business operation of Mr. and Mrs. Roberts, following discussions with Attorney Cherof, staff recommended a closing be held on the property, with the tank cleanup to follow. Chair Taylor agreed the cleanup project should move forward. As the contract was contingent upon a clear environmental assessment, Mr. Rodriguez felt staff should advise the property owner of the findings of the environmental inspection and offer to reduce the property by $15,000 or at least split the cost with the homeowner. Attorney Cherof noted that could be done. The contract with the CRA provided a cancellation clause if unsatisfactory conclusions were noted in the environmental inspection. Vice Chair Hay felt it was important for the area to be cleaned up and developed. For the amount of money involved, he believed the Board should move forward and show due diligence in an effort to take positive measures for the area. Mr. Weiland felt the property owner should be responsible for the full cost. However, as noted by Chair Taylor and Vice Chair Hay, for the amount of money needed to clean up the property and move the project forward, he would begrudgingly go along with the recommendation. He would not want to see the deal fall apart and would, therefore, approve the project. Ms. Bright pointed out the area was considered by staff to be a key commercial property, and was important to the community. The citizens had noted their interest in local commercial retail. As the CRA owned the Jesus House of Worship, the opportunity would be available, if the CRA were to purchase the property at 1002 MLK Boulevard, to have a small building constructed by a commercial developer to provide the incubation type of businesses sought by the community. This would also tie in with the Heart of Boynton plan and the goals of the Community Committee. Ms. Bright noted the area was considered by the CRA Police to be the second highest crime spot in the City. Motion Vice Chair Hay moved that the Board recommend approval of keeping the closing date of January 25, 2010 and the expenditure of $14,910 +/- (plus or minus) to conduct the underground tank storage removal and closure. Mr. Weiland seconded the motion that passed unanimously. 12 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida December 8, 2009 B.Consideration of Deeding a portion of CRA-owned Land to Palm Beach County Ms. Brooks noted the request related to the streetscape project for Seacrest between Boynton Beach Boulevard and the C-16 Canal. Seacrest Boulevard was a County road with federal funding administered by the State. The City was installing medians in the streetscape to allow for beautification and landscaping. The medians required U-turn areas. As such, staff proposed that the U-turns be planned on property owned by the CRA so that there would be no additional acquisition costs relating to the project. A deed, which was included with the meeting materials, had been reviewed by Attorney Cherof. Also included was a sketch and a description of the right-of-way. Ms. Brooks stressed the County would not approve the project without the turn-around. Motion Vice Chair Hay moved to approved. Mr. Weiland seconded the motion that passed unanimously. C.Consideration of Options on Mortgage Foreclosure-HAP Recipient Kathleen Barbee Mike Simon, Development Director, noted the Board had approved the distribution of Homebuyer's Assistance Program (HAP) funds of $50,000 to Ms. Barbee in November 2007. The closing was held December 3, 2009. On October 29, 2009, the CRA was served with a complaint for foreclosure by HSBC Mortgage. Staff sought direction from the Board on the manner in which to answer the complaint. The options presented in the staff report were the same options presented to the Board in September for a similar situation regarding a Homebuyer's Assistance Program (HAP) recipient. Attorney had suggested the following options: ?Option #1 was to file an answer only. If the foreclosure were to go through and the property was sold, some or all of the monies left over after satisfaction of the first and second mortgages would be provided to the CRA. ?Option #2 was to file an answer and cross-claim to foreclose on the CRA's third mortgage. The Board had previously approved Option #1 for the aforementioned Homebuyer's Assistance Program (HAP) recipient, which was to file an answer only and for the CRA to be kept apprised of the foreclosure proceedings. The CRA had an option in its mortgage that allowed a first right of refusal to purchase the property for the appraised 13 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida December 8, 2009 value. This option had not been previously exercised. The CRA had not heard from the bank as to their short-sale offer. Ms. Ross expressed concern that more complaints of this nature would be received. In fact, a complaint had already been presented to the City Commission. At this point, she was hoping the Board would set a precedent and consider Option #2 as people could come into money at some point, and the CRA's judgment could be satisfied. Mr. Weiland agreed with Option #2 as well. He could not justify Option #1. Chair Taylor inquired whether there was any way to track persons relocating out of the State to determine whether they indeed came into money. Attorney Cherof advised it would be difficult to do so. Individuals holding judgments could request an asset or records search to track persons every few years, but the results would be "hit or miss" at best. Mr. Rodriguez believed the Board had an obligation to consider Option #2. While the situation was unfortunate, the Board would not be causing any damage to Ms. Barbee. The Board would be filing a response in order to protect the interests of the taxpayers of Boynton Beach. If at some point in the future, or during the sale of the property, there were monies remaining, the monies would be returned to the CRA. Attorney Cherof agreed that no damage would be caused to Ms. Barbee and at a minimum, Option #1 should be considered. Option #2 would be an add-on with no significant additional costs involved and would result in a judgment against the homeowner. Monies to satisfy the judgment could be collected if Ms. Barbee were to win the Lottery or come into money by other means. Ms. Ross agreed with Option #2 which would provide the opportunity to collect monies in the future. Mr. Weiland believed Option #2 would protect the citizens of Boynton Beach. The $395 cost to file a cross-claim would allow the CRA to place a lien against the homeowner. If the homeowner ever came into money, the homeowner would be required to satisfy the judgment. Option #1 would result in a losing situation for all three parties. Vice Chair Hay noted his support for Option #1 to file an answer only. If the foreclosure were to go through and the property were sold, and if money was left over after satisfying the first and second mortgages, the CRA would receive some or all of the remaining money. Option #2 would be "wishful thinking" as he did not feel the homeowner would win a lottery. 14 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida December 8, 2009 Motion Mr. Rodriguez moved for Option #2 at this point. Ms. Ross seconded the motion. Chair Taylor pointed out from comments made, it appeared the CRA would be faced with more of these cases. As such, he suggested the program be examined to determine whether the CRA should continue to provide the funding. Chair Taylor requested this issue be addressed at the next meeting in January to reconsider the funding. Mike Simon noted that after the last approval, $180,000 remained for the program, with $150,000 to be distributed to RTG Properties and $30,000 to the general public. Vice Chair Hay pointed out that each time the Board was faced with a foreclosure complaint, it would cost the CRA $395 if Option #2 were selected. The motion passed 4-1 (Vice Chair Hay dissenting). Chair Taylor inquired whether the Board wished to provide direction for staff to place a hold on the program pending further discussion of the issue in January. Motion Mr. Rodriguez moved to put a hold on the program until the Board had recommendations to review in January. Vice Chair Hay seconded the motion. Mr. Simon noted Assistant City Attorney Jamila Alexander was currently working on this particular foreclosure, and in comparison, she mentioned foreclosure notices had been coming through almost weekly with regard to the City's programs. Ms. Harris pointed out to the Board that the Agency had an existing contract with RTG which ran through June 2010. As such, she questioned whether staff would be able to put a hold on a request for funding. It was Attorney Cherof's understanding that the motion would apply to any new transactions, and not anything for which the CRA was under contract. He added the CRA was bound by its contractual obligations to RTG in the event application was made. Mr. Rodriguez inquired whether the program could be modified and, if so, whether RTG would be bound by the modified program. Attorney Cherof advised he would review the language of the contract to determine the CRA's obligations at the time the contract was entered into. He agreed to bring back his findings to the January meeting. 15 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida December 8, 2009 Keturah Joseph, of the Boynton Beach Faith-Based CDC, cautioned the Board against curtailing a very good program. While there were foreclosures nationwide, the lowest incidences of foreclosures were observed in affordable housing. Mr. Rodriguez pointed out the program funds were allocated by taxpayer dollars and as such, were subject to a different level of scrutiny. Ms. Bright stressed the CRA's primary business involved affordable housing. As the Boynton Beach CRA could not be the only CRA experiencing foreclosures, staff would research other CRAs to determine the manner in which foreclosures were handled. There was no vote on the motion. Piotr Blass, 113 West Tara Lakes Drive, mayoral candidate, commented his vision for the City would include a 10-year moratorium to stop foreclosures in the City and allow citizens to remain in their homes while paying what they could afford. Chair Taylor emphasized this was not possible as the banks, and not the City foreclosed on properties. XI. New Business: A.Consideration of Work Order with REG for Master Plan of Sara Sims Park Ms. Brooks noted the item related to the Heart of Boynton redevelopment plan. Under a continuing contract with the CRA, REG was proposing a conceptual master plan for Phase I of Sara Sims Park. The master plan would be incorporated into the Recreation and Parks Department's overall parks plan and would hopefully be funded in the future by the City and CRA through a Five-year Capital Improvement Plan. The proposed work would enhance Sara Sims Park and align the main entry of the Park off Seacrest with 9th for a more impressive entrance. Monies were available for this project from Heart of Boynton funds. Staff recommended approval of the REG work order. Motion Vice Chair Hay moved to approve. Mr. Weiland seconded the motion that passed unanimously. B.Consideration of Executive Director's performance Appraisal Chair Taylor reviewed the appraisal with the Executive Director. Ms. Bright received an overall score of 4.25% after averaging all of the Board members' scores. Chair Taylor 16 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida December 8, 2009 noted Ms. Bright's evaluation was outstanding, as the highest score one could achieve was 5%. He commended Ms. Bright for her leadership and guidance over the past year which resulted in countless accomplishments by her and the CRA staff. While Ms. Bright was certainly deserving of a salary increase, in light of the economic crisis, no one would be receiving a salary increase. Motion Mr. Rodriguez moved to accept the performance review. Vice Chair Hay seconded the motion that passed unanimously. XII. Future Agenda Items A.Consideration of Economic Development Programs 1.Rent Subsidy 2.Signage Improvement program 3.Tenant Improvement XIII. Comments by Staff None XIV. Comments by Executive Director Pursuant to a discussion at the November 10, 2009 meeting, Ms. Bright was attempting to develop a plan with Joe Zalman, Executive Director with the Palm Beach County Housing Authority, to obtain 26 parcels of land to become part of the CRA's Urban Infill Housing Program. Ms. Bright would keep the Board apprised of the progress made on this issue. With regard to the Chinese Drywall problem at the Preserve, Ms. Bright advised the Board that Attorney Cherof was addressing the issue and assisting those residents where possible. The City Manager and Development Director were working on a business retention program with the Chamber. Ms. Bright informed the Board she had been asked by the City to participate in a business survey to determine the needs of the business community and the manner in which the community could be assisted by either the City or CRA. A first meeting was recently held and the survey was scheduled to go out in January. 17 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida December Sf 2009 XV. Comments by CRA Board Attorney None XVI. Comments by CRA Board Mr. Weiland reiterated earlier comments made by the Board. He commended Ms. Biscuiti for a flawless job on last Saturday's parade and concert. He also extended kudos to the Executive Director and her staff for their excellent teamwork and for a job well done. Ms. Ross enjoyed the parade and expressed gratitude to the staff for the wonderful event. This was the third time she had attended the parade and concert and it was good to see the citizens lining the streets each year. She felt the chill in the air added to the festivities. Ms. Ross and her guests took pleasure in the music of Gloria Gaynor and that of the opening band. Mr. Rodriguez wished everyone a Merry Christmas and Happy Holidays. He asked that staff call him at hO,me if they needed any help with the Toys for Tots drive. Chair Taylor noted he had received at least three telephone calls with respect to the Chinese Drywalls, asking what the City would do about the problem. Two of the calls were from people west of the City boundaries. He referred all callers to the City Attorney's Office as the situation was a nationwide legal issue. He suggested all such calls be referred to the City Attorney's Office. Vice Chair Hay commended staff for a job well done and to continue in this direction next year and in years to come. XVII. Adjournment There being no further business to discuss, the meeting properly adjourned at 8:24 p.m. ~0 Stephanie D. Kahn Recording Secretary 120909 18