Minutes 05-11-10
MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING
HELD TUESDAY, MAY 11,2010, AT 6:30 P.M.
IN CITY COMMISSION CHAMBERS, BOYNTON BEACH, FLORIDA
PRESENT:
Jose Rodriguez, Chair
Marlene Ross, Vice Chair
Steven HQlzman
Woodrow Hay
William Orlove
Lisa Bright, Executive Director
Jim Cherof, Board Attorney
I. Call to Order
Chair Rodriguez called the meeting to order at 6:30 p.m.
II. Pledge to the Flag and Invocation
Mr. Hay gave the invocation, which was 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
I. Board Attorney Request for Closed Door Session to Discuss Litigation
(see X.A. & B. below)
Mr. Hay pulled Item VILC.
Ms. Bright pulled Item VILA.
Chair Rodriguez added discussion of the Administrative Fee Policy to New Business as
Item XILE.
Chair Rodriguez had questions regarding Old Business, X.E. In March, this item was
discussed and a motion made to enter into an agreement for a land swap. He was
unsure why the item was back on the agenda.
1
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11, 2010
Jim Cherof, Community Redevelopment Agency (CRA) Board Attorney, clarified this
was the formal approval of the transaction. As the item needed formal action, there was
a record of approval by the Board and City Commission for land title purposes. He
requested that in the future, staff distinguish whether the action was a formal approval
or other action that differed from the original item.
Mr. Holzman pulled Item VII.B.
Chair Rodriguez requested discussion of the business incubator and noted staff was to
bring back a feasibility analysis of the Roberts Property and Jesus House of Workshop
as the location for the incubator. Lisa Bright, Executive Director, Community
Redevelopment Agency, responded the drawings were not final. The Board had also
previously indicated the item may not go forward due to the budget. She met with
Neighborhood Works and the Community Housing Partnership Group and was
attempting to locate a funding source. The item was not brought forward because the
details were not final for the Board to consider.
The facility would be a 20,000 square-foot building fronting Sea crest Boulevard. The
first floor would contain office and retail space, and the second floor would be dedicated
to office-related services for the Heart of Boynton area. Chair Rodriguez noted the item
was listed as a Future Agenda item on the April agenda, and it was not on this agenda
under any category. Ms. Bright indicated they would ensure it was on the agenda for
the next month.
Motion
Vice Chair Ross moved to approve the agenda as amended. Mr. Orlove seconded the
motion. The motion passed.
B. Adoption of Agenda
V. Informational Items by Board Members & Community Redevelopment
Agency Attorney
Attorney Cherof noted the agenda referenced a request for a closed-door Executive
Session. The pending matter had been discussed previously in Executive Session with
regard to litigation strategy. The facts had not changed. After the last closed-door
session, the Board could have taken action regarding resolution of the case and was
now in a position to do so.
The matter was not required to be discussed with the Board privately in closed-door
session nor at a public meeting. The Board's consent was required to delete the
requirement (Item X.A) for the closed-door session. All of the issues would then be
discussed under Item X.B. A motion to delete the closed-door session was requested.
2
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11, 2010
Motion
Mr. Hay so moved. Mr. Holzman seconded the motion. The motion passed.
Mr. Orlove expressed there was a good turnout for the Mayor's Walk that took place in
the CRA district. Four hundred people participated and the event was well done. He
complimented staff and applauded all, including the public. It was a nice first event in
the district.
Mr. Hay also commended the walk and expressed in the future, that if another event
was held, it would be better to discuss it beforehand with other members of the Board,
to ensure all could participate. Mr. Hay had a scheduling conflict but would have liked
to participate in the event as he attends many of them. Mr. Hay wanted his concern
noted.
Mr. Holzman indicated he requested information from the Executive Director regarding
how many vacation days she had taken to-date. It was noted she was entitled to 15
days, but he had not received a response. He requested the Board be provided, on a
rolling basis, the number of days missed so they could keep track of the Executive
Director's attendance, just as any manager would do for their employees. He also
indicated the Executive Director did not keep track of the staff's attendance on a daily
basis. He reiterated it was important to keep track of staff's attendance to ensure they
were working towards the same goal. It was the Board's responsibility to ensure things
were running smoothly and the Board was held to a higher standard to ensure
transparency and accountability.
Mr. Hay understood the need for transparency and expressed he was satisfied with the
CRA staff and he did not want to micromanage their time. Unless there was a problem
or an issue, he would not need that type of information.
Mr. Holzman clarified there was no problem, rather it was a point of information.
Ms. Bright responded last month she asked the Board if they wanted to have a
workshop. The role of the Executive Director was a contractual position; however, she
explained she was receiving individual requests from Board members. Her past practice
was to include her calendar in the Board packet every month. When the change in
leadership occurred, the new Chair requested a weekly calendar. She complied with
the request, and she consulted with counsel. There were a few occasions when the
calendars were not received and there was an inference she was not providing them in
a timely manner. Accordingly, she provided it to the entire Board.
When Mr. Holzman requested adding another task to her weekly calendar on a rolling
calendar basis, she received mixed messages. Ms. Bright clarified if the request was
about her time and leave, she could comply, but she wanted to ensure that the Board,
for the next 90 days, clearly outline exactly what everyone wanted.
3
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11, 2010
She expressed the request was micromanagement. The auditors manage the leave
requests that she signs. Her vacation was a compensated absence that the auditors
also monitor. If the Board wanted to add this to her responsibilities she would comply.
She requested a procedure be promulgated. She wanted to ensure if the Board
monitored her attendance, that other Executive Directors or Directors in the City would
be held to the same standard. She expressed she was receiving disparate treatment.
Chair Rodriguez responded the Community Redevelopment Agency Board was an
independent Board with oversight of the staff and the Executive Director. There should
be no outside influence. He assumed, as a new Board member, that Mr. Holzman
noticed the Executive Director, in the last month and a half, had taken almost two weeks
time.
Ms. Bright noted that information was incorrect.
Chair Rodriguez clarified in the last month and a half Ms. Bright took six days and this
week would take another few days. She was asked about her time and some members
felt the discussion was not an effective use of tax dollars.
Chair Rodriguez mets with the Executive Director and Attorney Cherof weekly. Attorney
Cherof confirmed the Board member had the right to ask questions and the Executive
Director works for the Board and has the responsibility for the staff. He asserted the
Executive Director was being uncooperative and he expressed the matter was
discouraging.
Mr. Holzman explained the question had nothing to do with a review of the Executive
Director's job. He only noticed that there were three days of absence for this week. He
pointed out there was a contract that governed the relationship and according to the
contract, the Executive Director received 15 days of vacation time and any other days of
vacation did not fall within the contract.
If she has taken 15 days, then the Board would know she would be in the office for the
rest of the time required by the contract. The Board was accountable to the citizens of
Boynton Beach and for overseeing the CRA. He disputed there was disparate
treatment.
Ms. Bright inquired if she answered the question at the meeting if the Board would
continue to request every week that she continue to calculate her time. Mr. Holzman
explained she already provided the Board with a rolling calendar. She should continue
to provide her calendar indicating she took day one of 15 days, or day two of 15 days,
etc., so each Board member was aware of what was occurring.
Vice Chair Ross expressed concerned and inquired whether all of the Board members
met regularly with the staff. She contended the Board was not dedicated or effective
4
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11, 2010
unless they met with the staff. Ms. Bright was on the list of "must-know" contacts in
Florida Trend Magazine. Ms. Bright was excellent with her staff and they could not
accomplish what they did without her being dedicated and putting in hours and hours,
including evenings and weekends, or days.
Chair Rodriguez felt Vice Chair Ross's comments were irrelevant to the discussion of
answering a question. Vice Chair Ross felt her comments were relevant and she did
not appreciate the assertion.
Ms. Bright explained she took five days in April, and was taking three days of leave
time, in order to travel to New York for her daughter's medical procedure. She noted
her trip to New York was not vacation. She expressed this was blown out of proportion
and that she was offended that she had to be the only Executive Director in the City and
County to have to provide a rolling attendance report to individuals who were not going
to be her bosses in 90 days. If the information was intended to be used to scrutinize her
operations and how she conducts business, she would provide the information. She
explained since her time rolled over, her accumulated leave time was more than 15
days.
Chair Rodriguez requested she send an email to the entire Board containing the
information. It was noted Vice Chair Ross and Mr. Hay did not need or want the
information. Vice Chair Ross requested a vote. Chair Rodriguez explained the matter
had been overblown, but only because of her lack of response. Ms. Bright agreed and
pointed out she was the only Executive Director in the City that was having their
attendance monitored.
Mr. Hay commented too much time was spent on the issue. He hoped the hours worked
by Ms. Bright beyond regular work day would be recognized and the Chair was nit
picking issues. He felt she was being singled out, the issue should be left alone and
they move along on the agenda. He did not want her calendar, or the days she has
taken. He commented there were issues that could be raised regarding the Chair such
not picking up his agenda until the day of the meeting.
Chair Rodriguez explained for the record, the agenda was delivered to his home and
the City agenda was on a CD which could be downloaded. It was not necessary to go
into the office and to obtain it.
VI. Announcements & Awards:
A. Ocean Avenue Concert - May 21st Pure Justice Band
Ms. Bright announced on Friday night, the Boynton Beach CRA was presenting the
Pure Justice Band. The event was sponsored by Rick Lacoco, the developer for
Gulfstream Gardens. The concert was free. Food and drink vendors would be on-site
and attendees should bring folding chairs. No pets were permitted.
5
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11, 2010
B. Movies on the Ave. - June 4th The Blind Side
The Blind Side, starring Sandra Bullock, would be aired June 4th. The film was rated
PG-13. No pets were allowed and parking was available. It was noted the Movies on
the Ave. had become a favorite venue for the local residents. It was noted the movie
was the last in this year's series.
VII. Consent Agenda:
A. Approval of Minutes - CRA Board Meeting April 13, 2010
This item was pulled by Ms. Bright.
B. Approval of Period Ended April 30, 2010 Financial Report
This item was pulled by Mr. Holzman
C. Approval of the Mayor's Boynton Harbor Marina Slip Tenant Meeting
This item was pulled by Mr. Hay.
D. Approval of Commercial Fa<;ade Grant to Janashpa Ent. d/b/a McDonald's
Restaurant
E. Approval of Commercial Rent Subsidy Grant to Tsunami Subs & Wraps
F. Approval of Commercial Interior Build-out Grant to Doubleplay Media, Inc.
This item was pulled by Chair Rodriguez
G. Approval of Commercial Rent Subsidy Grant to Doubleplay Media, Inc.
VIII. Pulled Consent Agenda Items:
A. Approval of Minutes - CRA Board Meeting April 13, 2010
Ms. Bright noted a clerical error in the minutes. The program pertaining to Items J
through M was the Homebuyer's Assistance Program. The minutes reflected the
program as the Residential Improvement Grants.
Mr. Holzman noted the motion on page 21 was "that the Board select the Auburn
Development Company to implement the Heart of Boynton vision", He felt the motion
should be "to approve selection of Auburn Development to begin negotiations on a
purchase agreement." as opposed to selecting Auburn Development to implement the
Heart of Boynton.
6
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11,2010
Attorney Cherof felt the clarification was beneficial, and in addition to the language, he
recommended adding, "and to commence negotiations." to the motion.
Motion
Mr. Holzman moved to approve the minutes as amended. Mr. Hay seconded the
motion. The motion passed.
B. Approval of Period Ended April 30, 2010 Financial Report
Mr. Holzman inquired about the car allotment. He noted there was a $5,400 allotment
for cars. It was noted the Assistant, and the Executive Director each had a $5,400 car
allowance.
Motion
Mr. Orlove moved to approve the Financial Report. Vice Chair Ross seconded the
motion. The motion passed.
C. Approval of the Mayor's Boynton Harbor Marina Slip Tenant Meeting
Mr. Hay inquired about the Boynton Harbor Slip Tenant Marina meeting. He noted each
Board member could go to the CRA, make inquiries and receive information. He
inquired from legal counsel about the properness of the Mayor giving direction to staff to
take action on the item. He felt that action was more than fact finding,
Chair Rodriguez explained the meeting was fact finding. A brainstorming session was
held and issues and actions were identified. Chair Rodriguez advised he was clear with
staff that any issue that required them to take action would need approval by the Board.
It was noted the agenda did not reflect Chair Rodriguez' directives to staff and he
agreed it required Board approval. Staff had not commenced with any of the directives.
Mr. Hay requested the Legal Department's comments.
Attorney Cherof explained the members each have independent authority to engage in
activities and obtain information. Some members call staff or meet with them or
constituents in the area. There was no clear line established in this regard. However,
the Board could establish one. There were Rules of Governance which could be
brought back to the Board. It was thought the current Board had not reviewed those
rules which were intended to provide guidelines regarding the role of the Board and
staff. Attorney Cherof suggested it be added it to the next agenda. He commented the
Board may want to govern differently than the previous Board, or govern differently as
the process of transitioning to the new Board began. Attorney Cherof expressed his
perception was the Board wanted the transition to occur with control. It was up to the
Board to establish parameters. He suggested allowing each of the Board members to
have some discretion how they gathered information. Mr. Hay thought it would be
7
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11, 2010
inappropriate, at this time, for the Board to go through that process. The rules, as
already established, could be added to the next agenda for discussion, conversation
and understanding. Mr. Hay encouraged the members to read the document and if
anyone had any questions they discuss it so the members would be on the same page.
Ms. Bright noted the entire Board received the Rules of Governance and job description
for the Chair after the election and the request had been made public record. The
number one rule of Administration was to see that the policies and directives of the
Community Redevelopment Agency Board were enforced. Her interpretation was it had
to come back to the Board because the existing policy required it come through staff. A
meeting was held with legal counsel and the Mayor to ensure she and the staff would
not be engaging in any area or actions, pertaining to the marina, that the Board was not
aware of. Ms. Bright put the request on the agenda prior to taking any action.
Attorney Cherof commented the events taking place up to the marina meeting were well
coordinated with the Chair and the Executive Director. Legal counsel was consulted for
each step of the process of setting up the meeting and conducting it. Both individuals
were cautious of their respective roles. Mr. Hay advised he only raised the concern
based on some of the actions he had observed.
Chair Rodriguez commented the meeting was the Mayor's Boynton Harbor Marina
Meeting, not the Chairs, and any action would return to the Community Redevelopment
Agency Board for action and be moved forward.
Motion
Mr. Hay moved to approve. Mr. Orlove seconded the motion. The motion passed.
Chair Rodriguez requested pulling Item F.
Motion
Vice Chair Ross moved to pull Item F. Mr. Holzman seconded the motion. The motion
passed.
F. Approval of Commercial Interior Build-out Grant to Doubleplay
Inc
Media,
Chair Rodriguez noticed the item was the first request having a full-time employment
component. It was noted the applicant had four or five employees in Delray Beach. He
inquired if all the applicant had to do was move the employees into the City of Boynton
Beach to be eligible for the program. It was noted the applicant had seven full-time
employees and it was confirmed that moving them to Boynton Beach would qualify him
for the program.
8
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11, 2010
The applicant was not hiring anyone from Boynton although the building would be
utilized. There was discussion of the overall impact of moving the business and
attracting businesses to Boynton Beach. By allowing them to use existing employees, it
would be an incentive to locate businesses into Boynton with the hope they could create
more jobs after they relocated. The applicant had an executed lease agreement
commencing June 1 st.
There was further discussion the guidelines did not require him to stay for a certain
time. He could move at the end of the year. The length of time the applicant operated in
Delray Beach was unknown, but it was noted, the program had a requirement that the
applicant had to own the property or sign a two-year lease.
Motion
Mr. Hay moved to approve. Mr. Holzman seconded the motion. The motion passed
unanimously.
Ms. Bright noted the applicant was established five years in Delray Beach.
IX. Public Comments: (Note: comments are limited to 3 minutes in duration)
Herb Suss, 1711 Woodfern Drive, was glad the topic of the Executive Director's
vacation leave was discussed. He noted all five members of the Board were
responsible to the taxpayer and transparency was important. During the election, Mr.
Suss questioned staff being at election headquarters and he asked if it was on City
time. He emphasized he was entitled to know the whereabouts of staff and all were
accountable.
Mark Karageorge, 240A Main Boulevard, commended the Mayor and CRA Board on a
great Mayor's walk. He commended all who participated and sponsored the event and
thought it was the start of something good. Having 400 people participates sends the
right message. He also thanked Mr. Holzman regarding his comments on the
Doubleplay Media agenda item. The rent subsidy and build-out assistance programs
were the tools that help bring business into the City.
No one else coming forward, Chair Rodriguez closed the public audience.
X. Old Business:
I. Board Attorney Request for Closed Door Session to Discuss Litigation
(see X.A. & B. below)
Attorney Cherof explained the Board would not hold a closed door session for this item,
which pertained to the CRA Board's action against Delray Boynton Academy to recover
grant money. The CRA made demands for records confirming that they had the
9
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11, 2010
requisite number of employees hired and working during a specific time period that
qualified them for the grant money The recipient did not respond to the numerous
requests from the Executive Director or legal staff. Accordingly a lawsuit was filed.
During deposition, documents were produced that on their face substantiated the
recipients claim they had the right number of employees during the specified time
period. During the closed door session held at the last meeting, Attorney Cherof
provided the information to the Board and indicated they were doing additional
discovery to substantiate the information was accurate and could be relied on during
litigation. The information they received was positive in resolving whether or not there
was a breach of contract. There was now an offer of settlement on the table from the
Delray Boynton Academy for $5,000. Based on Attorney Cherof's review of the matter,
he recommended that they accept the settlement offer.
There was discussion how the Board got into the position that they had not complied,
legal fees were expended and now it was learned the recipient did comply. Attorney
Cherof responded The Academy kept poor records which resulted in them not being
able to prove they complied before the lawsuit was filed. He noted there were
substantial efforts made by staff and, more specifically, Vivian Brooks to obtain the
information. Only after months of making the requests was the lawsuit filed. With the
assistance of the Attorney that was retained by the Boynton Delray Academy were the
records gathered, produced and substantiated reflecting the requirements for receiving
the grant monies were met.
Mr. Holzman commented he was contacted by the owner of the Delray Boynton
Academy and, with the approval of counsel, he met with them to discuss the issue. He
agreed with Attorney Cherof the offer of settlement was something they should accept.
Mr. Hay agreed they should accept the offer and inquired if the Board had developed
any measures to avoid being in this position again. Ms. Bright noted the grant was a
Palm Beach County grant, which was a matching grant that was no longer available.
She commented staff pursued litigation at the request of the County because the
County provided a portion of the money.
The grant was a $50,000 match from the County and $50,000 from the CRA, The legal
expenses were unknown, but Attorney Cherof would email the information about the
fees to the Board the next day. The grant was forgiven and the requirements for
earning the money were satisfied.
Vice Chair Ross inquired if any other Board members met with Mr. Green. It was
ascertained no other members met with him.
10
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11, 2010
Motion
Mr. Hay moved to accept the $5,000 from Mr. Joe Green for the Delray Boynton
Academy. Mr. Holzman seconded the motion. The motion passed 4-1, (Mr. Orlove
dissenting. )
A. Legal Discussion of Splashdown Diver's Lease
Attorney Cherof advised the Board authorized execution of a new lease, which was
prepared and forwarded by staff.
A letter from Attorney Sarkin was received indicating the lease would not be signed
because they had a different expectation about the type of lease that would be offered
by the CRA. It contained references to legal standards that did not apply to a lease
transaction in the State of Florida. Attorney Cherof responded to the letter on April 28,
explaining the proper legal basis about the issues and he included a deadline of May 4,
2010 for Splashdown Divers to sign the lease. He telephoned Mr. Sarkin but, to
Attorney Cherof's knowledge, he had not responded to him or to staff. The direction
staff needed was whether to withdraw the offer of the lease and move forward with
other business activities for the site.
Chair Rodriguez inquired if the lease was withdrawn, whether the tenant would be a
month-to-month occupant. There were two separate leases involved, and it was
clarified this had to do with the building lease and not the boat lease. A strategy would
be needed.
Waypoint Marine was the Board's property manager and they could locate a tenant if
the Board desired, No fees would be involved, rather the action was part of the Board's
contract with Waypoint Marine.
There was an inquiry whether anyone contacted the CRA regarding the property and
how easy or difficult it would be to release the space. Ms. Bright explained staff had not
received calls about the dive shop. She was not sure staff would recommend the Board
release the dive shop. Staff would, more likely, bring forward the second phase of the
Marina plans.
It was not known how long it would be to rent the property again. Ms. Bright explained it
would be contingent on eviction proceedings or how long it would take if the Board
wanted the tenant to vacate the building. Attorney Cherof expressed it would be about
two months.
Attorney Cherof clarified he did not have a legal OpiniOn, rather the matter was a
business issue. Until an alternative plan was in place, the tenant was paying the rent,
and there was some revenue being generated. He suggested developing an alternate
plan and then taking action regarding an eviction. There was a question what would
11
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11, 2010
happen if the tenant changed their mind about the lease. Attorney Cherof explained he
would send a letter saying the offer was withdrawn. The Board had to make the
decision whether the lease should be with drawn or let the tenant remain on a month-to-
month basis.
If they were to choose to evict the tenant, the CRA would recommend demolishing the
building to redevelop the area.
There had been prior discussion with Ms. Simmons and Mr. Simon about the lease. Mr.
Orlove recalled Ms. Simmons made a comment at a meeting that inferred if that was all
that was offered, that was it. He commented it appeared she was willing to accept the
lease. He inquired if there was anything other than a legal response reflecting she had
a change of heart. Ms. Bright explained Ms. Simmons typically approaches Mr. Simon
or herself. She confirmed there has been no communication from her or her attorney.
Ms. Bright spoke with Brian Smith, the Marina Manager of Waypoint Marine, so she
ensured the answers were available for the Board.
There was an inquiry if the Board could include in the letter that this is the last 30 days
and if no response was received during the timeframe, eviction proceedings would
commence. It was noted eviction proceedings could take a minimum of two months.
An eviction would not be cost effective for the Board. It was noted the Board had been
prepared to lease to her for a year. Ms. Bright clarified it would be a one year lease with
one year renewals. Ms. Bright explained if the tenant were not there, staff would not
recommend any replacement because the renovation was forthcoming. Tearing down
the building would change the entire visual corridor when entering the marina area.
Attorney Cherof noted under the existing lease, the rent doubled. If a notice to vacate
was issued and the tenant did not vacate, there was a double rent provision for holding
over, The notice period on the lease has expired and she was holding over at the
same rate.
There was discussion whether there was any statute governing raising the rent.
Attorney Cherof explained they could hold the rent for the first month, and then when
the new notice about the rent increase was sent, it would apply. There was discussion
about using that methodology because the Executive Director has plans for the building.
Motion
Mr. Holzman moved to withdraw the lease offer per the letter by the CRA attorney. Mr.
Orlove seconded the motion. The motion passed,
The monthly rent charged for Ms. Simmons building matched the Heart of Boynton
rental rates, which were approximately $1.45 per square foot. The rent under the
proposed lease was $1,397.
There was agreement to double the rate which was still under the market rate.
12
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11, 2010
Motion
Vice Chair Ross moved to double the rate from $1,397. Mr. Hay seconded the motion.
Attorney Cherof recommended adding a time period to the motion, which could provide
an exit maneuver for the recipient. Allowing 30 days was thought to be sufficient.
Motion
Vice Chair Ross moved to double the current offer of rent effective July 1 st.
Ms. Bright noted there was a small kiosk inside the dive shop where the Seamist fishing
boat sold their tickets that would also be affected by Ms. Simmons losing the dive shop.
The Seamist paid Ms. Simmons $300 per month for the kiosk. There were no other
locations for the kiosk at this time.
Motion
Vice Chair Ross moved to double the rent from $1,397 effective July 1 on a month-to-
month basis. Mr. Holzman seconded the motion. The motion passed.
B. Approval of Business Signage Improvement Grant to South Florida
Mastercraft - TABLED April 13, 2010
Vice Chair Ross moved to remove from the table. Mr. Hay seconded the motion. The
motion passed.
Ms. Bright explained the program guidelines and policies required Board approval prior
to the work being done. The Board tabled the item in order to give staff time to evaluate
the existing guidelines and make changes. Such changes would affect this grant and
others that had requested reimbursement retroactively. The auditor advised it would be
fiscally irresponsible for staff to change the existing guidelines that do not allow for
retroactive reimbursement. Board approval must be given prior to all work being
performed. Staff recommended the item be denied.
Motion
Mr. Holzman moved to deny. Mr. Hay seconded the motion. It was noted the applicant
was not present. A vote was taken. The motion passed.
C. Consideration of Entering into a Land Swap Agreement with the City
Attorney Cherof explained he reviewed the minutes of the March meeting. The
approval was conceptual. There was no document prepared. This item could be
approved formally. Nothing changed regarding the properties to be exchanged.
13
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11, 2010
Motion
Mr. Hay moved to approve. Attorney Cherof recommended the Board approve the land
swap agreement and to authorize the execution of the deeds. Mr. Hay amended his
motion to include the suggested language. Vice Chair Ross seconded the motion.
There was discussion about whether the assessed property value presented to the
Board was from the time of the purchase or the current value. Ms. Bright explained legal
counsel suggested, a few years ago, that the City and CRA conduct their own
appraisals. It was noted the appraisals were not included in the meeting backup. The
only information provided was the value from the property appraiser, the assessed
value from the property appraiser and the purchase price.
Vote
The motion passed.
D. Consideration of Options for Magnuson House - TABLED April 13, 2010
Motion
Vice Chair Ross moved to remove from the table. Mr. Hay seconded the motion. The
motion passed.
Ms. Bright explained on March 15 th, staff was directed to implement the redevelopment
of 211 Ocean Avenue as the CRA office. At the last month, the Board indicated they
did not want the project to linger and they directed staff to formulate a plan for this
meeting.
The agenda item contained the various options for use of the building. The uses
considered were for commercial, restaurant, office, to sell or donate the building, or take
no action. It was noted the building was a historic building. Ms. Bright noted all the
work was done by REG Architects, the Board's architect.
At the meeting on April 14th, Chair Rodriguez suggested staff evaluate the building for
the various options. REG Architects also pursued an option for a restaurant with a 100-
seat capacity and an expansion of the building.
Chair Rodriguez inquired if the renovation of the building had to meet a certain standard
for historic homes. Ms. Bright responded it varied for historic buildings and the costs
presented were based on the modification.
Chair Rodriguez inspected the building. The structure was a nice home. He thought the
estimates to renovate the structure were high. He pointed out, in the project budget
originally presented, they had about $400,000 available without having to get a
14
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11, 2010
mortgage. Anything above the $400,000 that the Board would spend would need to be
financed,
There was an inquiry whether any interested party came forward since the matter was
tabled. Ms. Bright was not aware of any interested party. It was noted; however, the
Assistant Director knew of an individual interested in the building for a restaurant. Staff
had not actively solicited anyone for the property, nor was staff authorized to do so.
Staff was only to investigate uses for the property, The party interested in the subject
building would be a subsidy project. Any restaurant would require a subsidy, and that
should be part of the dialogue if that was the use the Board wanted. It would also be
necessary to issue an RFP if a custom restaurant were located there.
It was suggested, since Chair Rodriguez had some contacts regarding the building, that
he pursue the matter, follow up on his ideas and be given the authorization to make it
happen. This would allow the Executive Director time to pursue a lease. Chair
Rodriguez expressed he would not work on it independently, rather he would work in
concert with the Executive Director. Chair Rodriguez noted part of the dialogue
indicated the members would prefer to see the building used for another use.
Discussion should also include using the building as a CRA office.
It would be difficult to determine viable options for the building because the property
was never advertised. As it pertained to using the building as a restaurant, Chair
Rodriguez felt it would saturate the market too quickly. His opinion was it would be
better to use the building for a commercial entity because the build-out could be
accomplished under budget. He noted the Business Development Training helped
citizens establish businesses. He suggested using the building for a start-up location
for the Business Development Training individuals. In this manner several businesses
could be located there. He thought in the future the building could be converted to a
restaurant.
There was agreement Option A, using the building for a commercial use without expansion
would be the best option.
Motion
Mr. Hay moved to approve option A, the commercial, no expansion of the building
estimated at $289,062 or a possible high of $349,375. Vice Chair Ross seconded the
motion. The motion passed.
Ms. Bright requested clarification on what the expectation from staff was, such as was
there a timeline, what would be brought back to the Board, or if it was marketing,
commercial use, i.e. retail. Chair Rodriguez explained it was marketing the building to
suit; the CRA would do the build out. Ms, Bright indicated the property would be posted
on the commercial LoopNet with the parameters discussed. She suggested posting it
there for at least 60 days and she would provide a progress report at the budget
15
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11, 2010
meeting in August. If a member wanted an updated status prior to that time, they could
email Ms. Bright. It would be beneficial to market the space to graduates of the TED
Center if there was room available. It was noted a company may occupy all or part of
the building. The goal was to use the building completely. The Board would be flexible
to what was being done and how they would do it.
D. Consideration of CRA Office Options
Ms. Bright explained effective at the end of the month the CRA office would be on a
month-to-month basis. The building was up for sale as commercial building. She did
not know the status if they wanted to vacate for 30 days. Staff created a spreadsheet
outlining potential office locations. They were thorough in assessing their space needs
within the entire CRA district.
There was discussion of the Holiday House on North Federal Highway. The property
was about 3,500 square feet, and was gutted. Ms, Bright was familiar with the property
and had spoken to the manager, Art D'Almeida. Mr. D'Almeida would not accept
anything less than $18 per square foot plus common area maintenance (CAM) charges.
Chair Rodriguez thought this was an opportunity to improve a building that needed work
and this could be a project. The north end of Federal Highway was more stagnant and
the building was an eyesore. Ms. Bright explained she worked with Mr. D'Almeida for
five years and they tried to obtain the building for a bakery, but their efforts were
unsuccessful. The current CRA building was 1,700 square feet and they paid $3,300
per month. It was noted Mr. D'Almeida was asking $4,600 for 3,500 square feet, or
double the space and the roof needed to be repaired. Chair Rodriguez indicated the
owner would replace the roof and do the build out. He thought the prospect was worth
exploring. Another building was on Boynton Beach Boulevard, Buds Carpet and Tile.
The property was owned by Mr. D'Almeida and had about 2,400 square feet
Mr. Hay reviewed the options presented. Locating the office to the south was not an
issue because the present location was already to the south. The Holiday House was
worth a try to renegotiate. While Ms. Bright was not interested in trying to negotiate with
him, Chair Rodriguez indicated he would. Another location discussed was Las
Ventanas. He noted it would be a boost to put something in the area. A minimum of
2,500 square feet was needed. Las Ventanas and Sunshine Square would also
welcome the office. Staff needed a plan.
Chair Rodriguez felt the CRA was supposed to address blight and slum. Ms. Bright
explained the renovation process for of the interior of Sunshine Square and explained it
would take a minimum of six to eight months to have the interior and roof done at Mr.
D'Almeida's location. Only $20,000 was budgeted for interior renovations. Chair
Rodriguez confirmed Mr. D'Almeida's listing indicated he would replace the roof and
make interior renovations. Chair Rodriguez noted the CRA had $400,000, and there
would be money available to assist with this item.
16
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11, 2010
Mr. Holzman liked the idea of renovating along Federal Highway north of Boynton
Beach Boulevard. It was a blighted area and needed help. He felt it might be beneficial
if staff could try to negotiate with the owner to see what lease options were available. If
the owner was unwilling to bring an equitable solution for the lease option, they could
use one of the other options. By selecting that location, staff was actually going into the
blighted community and trying to assist with its redevelopment.
Ms. Bright explained that was the goal of the Magnuson House. Staff only moved into
the current site and stopped paying rent until they obtained a permanent location. She
requested direction to negotiate a lease or to provide her with two locations and she
would come back in 30 days and the Board could select the best deal then. She
explained they were trying to redevelop Ocean Avenue by purchasing that home. She
was supportive of the Board's decision, but much has changed. She thought her
responsibility as Executive Director was to obtain a permanent lease as effectively as
possible. Chair Rodriguez respected the comments, but noted Ocean Avenue was
nowhere as close to the level of blight and slum as that which exists on Federal
Highway. Chair Rodriguez noted the Federal Highway was a major corridor and
entryway into the City.
After lengthy discussion there was agreement to move to pursue Holiday House with
Las Ventanas as the back-up location.
Motion
Mr. Hay moved to pursue the first option of Holiday House as Option 1 and as the back-
up Option 4 - Las Ventanas. Mr. Orlove seconded the motion.
Mr. Holzman requested clarification that the motion was to negotiate lease terms. It
was noted it was and the lease would return to the Board. The motion passed.
XI. Executive Director's Report
A. Small Business Development Program Survey and Testimonials from
Students (1st Quarter Classes)
Ms. Bright explained this item was in response to questions Mr. Holzman had regarding
the new economic development program and the surveys.
Chair Rodriguez left the dais at 8:28 p.m.
The data was received from the Center for Technology, Enterprise and Development
(TED Center.) The backup was not included with the meeting materials because it was
voluminous. It was, however, put on record that the compilation was available. If the
members want changes to the survey, the TED Center would be happy to add any
questions the Board might have.
17
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11,2010
Chair Rodriguez left the dais at 8:29 p.m.
It was noted there were several locations that indicated below average responses. Mr.
Holzman inquired if there was any follow up to determine what could be done differently.
Ms. Bright explained she had the data, which they needed for the budget, and they were
going to sit with the program administrator to determine what could be done differently
and incorporate the responses and update the curriculum.
Chair Rodriguez reviewed the responses and gave examples of the responses received
having negative comments. Ms. Bright commented they liked the candor of the
participants and the instructors, She observed some of the classes and she noted the
class was a difficult class. The small business failure rate was an issue and the
individuals were not from one class. You cannot take one class and develop a business
plan and hire more people. One of the participants was actively working with the CRA to
move his business. The results had to do with where the participants were in their
business experience which was not quantifiable. It was also noted the letters reflected
different aspects were beneficial to different participants.
One comment noted was to include seasoned experts in the program topic syllabus.
Facilitators relied on reading materials, handouts, or PowerPoint presentations. It was
noted it was difficult to find experts willing to volunteer. When Ms. Bright first assumed
her position on the Board and they had the Small Business program, she contacted
SCORE and they did not want to participate unless it was at a specific time. The
SCORE executives were not reliable. SCORE now switched to the model the CRA used
requiring they go to a location. The program was not free and staff would address the
issue.
Vice Chair Ross pointed out other comments were they would not change anything and
there were positive comments. Chair Rodriguez acknowledged positive comments
showed some aspects were effective. He suggested, if approached, the Chamber of
Commerce may have a volunteer available.
It was noted no motion was needed. The item was for information.
The Board mentioned issues who would find a remedy for within 60 days. Ms. Bright
noted the program was a CRA program and was created with the TED Center. Any
changes made would come from the CRA.
XII. New Business:
A. Presentation of Audited Financial Statements for FY 2008-2009 -
TABLED April 13, 2010
18
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11, 2010
Motion
Mr. Hay moved to remove the item from the table. Mr. Orlove seconded the motion. The
motion passed.
Susan Harris, Finance Director, reviewed the financial statements. She explained an
auditor applies Government Accounting Standards to municipalities and special
districts. They review financial statements to ensure:
· They are presented fairly and accurately
· They are in compliance with the laws, regulations and procedures in place
· That they have internal controls both in terms of financial processes and
procedures
· That they have other items such as Human Resource and Procurement
procedures.
The first few pages of the report were the Auditors Report which reflected a clean audit
indicating the CRA's financial statements were fair and accurate. They were in
compliance with applicable laws and regulations, and there were no new audit findings
for the fiscal year ending September 30, 2009. The CRA had strong balance sheets,
assets that exceeded liabilities by $8M, their cash position was strong and they were
able to fund the October through December period before the Tax Increment Financing
(TIF) Revenues were received. They have one revenue stream coming in during mid-to-
late December, Based on their fund balance, the Agency was in a position to fund the
October through December period again this year. There was a roll over of $490,000
from the last fiscal year which the Board designated for three or four different projects
which were the Children's Schoolhouse Amphitheater, the Marina signage, the Jones
cottage and Magnuson House and commercial build-out. The prior year's audit findings
were reviewed and cleared by the Auditor and no new audit findings for last fiscal year.
Chair Rodriguez had questions regarding the cover sheet which indicated the audit was
designated to express an opinion on the 2009 basic financial statement. It indicated
they were not engaged in an audit of internal controls over financial reporting.
Ms. Harris explained the financial reporting being referenced was the auditor does not
audit whether the CRA submits the report to their governing body in a timely fashion. It
was the submission timeline of all the financial reporting. They do not audit whether the
CRA presents the report to the Auditor General within the timeline required and they do
not audit whether they comply with the Bond continuing disclosures.
Ms. Harris advised she handles what reports they need to provide and the timeline. The
Auditor audits how they handle cash, accounts payable and those types of things.
19
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11, 2010
Internal controls are handled by a financial consultant who reports to Ms. Harris. The
consultant also meets with Ms. Bright quarterly to advise if staff had failed in any area or
handled the cash improperly. This methodology would ensure the Agency would not
have any missing funds for more than three months.
Motion
Mr. Orlove moved to accept the Financial Statement for 2008/2009. Vice Chair Ross
seconded the motion. The motion passed.
B. Consideration of Purchase of Vacant Lot at NW 6th Avenue for $20,000
Ms. Bright explained this item was part of the Urban Infill program, which assists the
CRA Police Officers. It assisted with building homes and having additional surveillance
in the area. She supported staff's request to use $20,000 of Heart of Boynton funds to
purchase the lot and include in the RFP they would build single-family homes on it.
Motion
Mr. Hay moved to approve. Mr. Holzman seconded the motion. The motion passed.
C, Consideration of an RFP for Four Vacant Lots within HOB
Ms. Bright announced this item was previously discussed with the City and CRA Land
Swap agreement. The CRA owned one lot on 10th across from St. Paul AME and two
on 11th. The Board just approved NW 6th. Staff wanted to assemble the land and
issue an RFP and see what type of response they receive for single-family development
housing with the Heart of Boynton area, There was an inquiry why they would issue an
RFP for four lots now and another 11 later. Ms. Bright explained it had to do with
zoning. Portions were commercial and some were residential. That issue needed to be
decided in order to determine how to structure an RFP. This request was less
complicated; it was strictly single-family residential housing.
Motion
Mr. Hay moved to approve. Mr. Holzman seconded the motion. The motion passed.
D. Consideration of Options on Mortgage Foreclosure-HAP Recipient
Shonae Trotman
Attorney Cherof explained the item was a foreclosure proceeding which arose from the
HAP funds. The property owner stands in second place to the mortgage. The options
were to file an answer only. If this occurred and there were funds left over, the CRA
would realize some or all of the funds,
20
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11, 2010
The second option was to file an answer and cross claim in which the CRA would sue
the property owner and bank foreclosure. They could possibly recover the money
through the foreclosure and could pursue a personal judgment against property owner
which they may recover funds. It was very unlikely this option would result in a benefit
to the CRA. It cost more to pursue Option 2 as opposed to Option 1. It was noted the
value of the property was unknown.
Mr. Holzman felt Option 2 was the viable option. There was discussion about the Board
having an obligation to try to collect.
The only cost involved was to file the cross claim. Legal has a boilerplate document so
there would be no additional attorney's fees in asserting the cross-claim. Attorney
Cherof requested if the Board decided on Option 2, to note this was the way they would
respond to future actions without having to come before the Board. Ordinarily they
would just file an answer, but they've been coming forward one by one because of the
concerns about the difficult economic environment and the ability to recover monies.
He felt, as a policy, they would follow the same procedure unless the Board directed
otherwise by policy.
Attorney Cherof explained he would only bring forward items that had extraordinary or
catastrophic family circumstances which caused the default, as opposed to the recipient
obtaining the funds in order to purchase an item they should not have probably bought
in the first place.
Motion
Mr. Hay moved to approve Option 2. Mr. Holzman seconded the motion. The motion
passed.
Motion
Mr. Holzman moved to direct the attorney that in all similar occasions to pursue Option
2 as stated in the report as policy. Vice Chair Ross seconded the motion. The motion
passed.
Attorney Cherof explained the policy would be followed and only items with unique
circumstances to the case would be brought forward.
E. Administrative Fee Policy
Chair Rodriguez explained at the last meeting, there was discussion about the 1 %, no
percent and a motion to change the policy to not charge intercity organizations an
administrative fee. That policy was amended to reflect no fees between the City and
CRA. Attorney Cherof had explained a separate motion was needed as a policy
direction.
21
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11,2010
Ms. Bright inquired if this was applicable strictly to grant administration. Chair Rodriguez
explained it pertained only to grants, not tangible services. Mr. Holzman thought it might
be difficult to make a policy decision because different grants have different
administrative requirements. It could put the Board in a corner and he was concerned
about a broad blanket policy being made.
Chair Rodriguez felt any fees charged to each other would reduce the amount and
would detract from the end result of the grant. A policy fee could be set.
Ms. Bright explained the prior conversation had extraordinary circumstances. Staff
typically did not do enter into joint grants, and they were not adverse to them, but she
noted the City had the standard practice of 10% coming off the top. It was emphasized
this was only for intra-agency grants and only as it related to the City and CRA. Vice
Chair Ross explained it would be a reciprocal practice. Chair Rodriguez spoke with the
City Manager and he was okay with the concept. It was unknown when this type of
circumstance would occur again. Ms. Bright explained it was up to the Board to decide
if they wanted to establish a policy.
Chair Rodriguez noted this could be of benefit with the Old High School and the
situation could arise in the near future.
Ms. Bright recalled with the Neighborhood Stabilization Program (NSP) funds with the
allocation in 2008 and City staff unnecessarily requested they be restricted to only use
the funds for what they wanted to do. City staff charged a fee with the NSP 1 funds and
told the CRA they did not want to do the work on the Davis Bacon analysis, so the CRA
had to layout more money.
The issue boiled down to fiduciary responsibilities and as long as it is unilateral there
was no issue. The CRA was unable to activate the grant because of the unwillingness
of the City staff to work with the CRA staff.
Mr. Hay's position was to move forward with it. Chair Rodriguez commented they could
approve it now and then approve it on the City Commission level. There was
agreement a unilateral reciprocal agreement was acceptable.
Motion
Mr. Orlove moved to approve an administrative fee policy that would mean that any
administrative fees incurred by the CRA or the City would be waived specific to grants.
Mr. Holzman seconded.
Mr. Hay received confirmation the motion provided for a mutual waiver. Attorney Cherof
explained if any further improvements were needed, they would be made before it was
presented to the City Commission.
22
Meeting Minutes
Community Redevelopment Agency Board
Boynton Beach, FL
May 11, 2010
Vote
The motion passed.
XIII. Future Agenda Items
A. Request for Proposal for Multifamily Project on Martin Luther King
B. Land Lease between City and CRA for Ruth Jones Cottage
C. Land Use and Zoning Ruth Jones Cottage
D. Children's Schoolhouse Amphitheater
E. Marina Signage Entryway Feature
F. Revised Marina Dockage Lease Agreement
XIV. Adjournment
There being no further business to discuss, the meeting properly adjourned at 9:03 p.m.
C{Jjj~/L1/V~ 0~UtLL-
Catherine Cherry l'
Recording Secretary
051310
23