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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