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Minutes 12-14-10 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD ON DECEMBER 14, 2010, AT 6:30 P.M. IN CITY COMMISSION CHAMBERS, BOYNTON BEACH, FLORIDA PRESENT: Jose Rodriguez, Chair Marlene Ross, Vice Chair Woodrow Hay Steven Holzman William Grlove Vivian Brooks! Interim Executive Director Jim Cherof, Board Attorney I. Call to Order - Chairman Jose Rodriguez Chair Rodriguez called the meeting to order at 6:30 p.m. II. Pledge to the Flag and Invocation The invocation was offered by Vice Chair Ross, followed by the Pledge of Allegiance led by Chair Rodriguez. III. Roll Call The Recording Secretary called the roll. IV. Legal A. Update on Mediation with Splashdown Divers Attorney Cherof advised the mediation process commenced last week which he and Interim Executive Director Brooks attended. The mediation process had been suspended after a few hours to allow the parties to consider suggestions offered by the mediator. Mediation conferences were confidential in nature! pending conclusion of the proceedings. Thereafter, the matter would be returned to the respective parties for more detailed discussions. An update would be provided to the Board upon the conclusion of the mediation. B. Status of Meeting with Cornerstone-The Preserve Attorney Cherof endeavored to keep the Board up-to-date on the matter by forwarding the emails exchanged by the respective parties. Attorney Cherof and Ms. Brooks met 1 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 14, 2010 with the parties a few weeks ago which led to the exchange of documents. There was not much Attorney Cherof could add with regard to statements made by the parties via the emails and what might be communicated at this meeting. The Board had requested Attorney Cherof review the record as to what had occurred at the time the Board approved the application made by Cornerstone to determine, in Attorney Cherofs opinion, whether any misrepresentations had been made to the Board. Based upon what was said at the meeting, Attorney Cherof reviewed the transcript and his individual discussions with each of the Board members to determine what else might have been said privately. Nothing else had been said, nor had Attorney Cherof discovered any record of misrepresentation as to what had occurred before the Board. Chair Rodriguez allowed Greg Kino, representative for the residents, five minutes to address the Board. Greg Kino, of the law firm of Casey Ciklinr 515 N. Flagler, provided a handout to the Board and spoke on behalf of several residents at the Preserve. He believed material misrepresentations had been made at the mediation meeting with regard to the amendment to the Direct Incentive Funding Agreement (DIFA)r Cornerstone's responsibilities as to its maintenance obligationsr and the issue of notice to the community. As a result of the alleged misrepresentations, change in use and character of the property from a homeownership to a rental community, he requested the Board rescind the agreement and hold another hearing with the residents of the Preserve present. Michael Weiner, spoke on behalf of the rcsidcnts developer of the Preserve, and questioned whether any action would be taken on the matter. Chair Rodriguez explained that while the matter fell under "Legal Updates/, a motion could be made with regard to any area of discussion. Attorney Weiner appeared before the Board at the request of Mr. Wolfe, of the Cornerstone Group, and read a statement which addressed the halt in the project caused by various market conditions and units having Chinese drywall issues. More than $250,000 had been advanced to support the Homeowners' Association to cover the unit owners who had not paid their assessments. In-kind personnel and other services had also been provided without payment by the Association. He believed the only possible resolution in the current environment would be to build out the remaining 114 units as a rental community. Neither the footprints nor the design of the building would be changed and no changes in entitlements were sought. The only issue at hand was the Direct Incentive Funding Agreement (DIFA) and for the rental units to be qualified. The affordability requirement had doubled from 50 to 100 unitsr and a portion of the DIFA was offered to the Homeowners' Association to defray fees. 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 14, 2010 Chair Rodriguez believed further discussions with the attorneys were necessary. Attorney Cherof noted meetings could continue, and a conclusion of the discussions could be brought back to the Board. Mr. Orlove felt that as a result of the comments offered by Attorney Kino! Attorney Weiner and the residents, a difference of opinion had existed in terms of the maintenance of the community. He inquired whether a misrepresentation was being dealt with in the ongoing discussions. Attorney Cherof agreed a good deal of disagreement had existed. However, to characterize disagreements as a misrepresentation for the Board's purposes was different. It was the intent of Attorney Cherof to determine whether anything that was said to the Board in conjunction with the Board's approval of the amendment of the Direct Incentive Funding Agreement (DIFA) constituted a misrepresentation on the record. In his opinion, it had not. What had occurred between the parties! the developer! the purchasers and the residents was a private issue. If the differences could not be resolved through discussion, litigation was a possibility. A portion of the litigation couid be based upon misrepresentations or allegations of misrepresentation made by the developer to the purchasers. However, Attorney Cherof was not in a position to make any judgment, nor did he feel the Board should be involved in any such evaluation. With regard to Attorney Weiner's statement relating to the properties having Chinese drywall! Mr. Orlove inquired whether the Board was responSible or liable for those units and whether the issue was being handled properly in terms of the replacement of the drywall. Attorney Cherof did not believe the Chinese drywall was a CRA issue, as issues of this nature were often addressed at the City level. In prior instances when inspections were made by the City for approved properties, no liability resulted either to this Board or the City arising out of the condition of the property. Pursuant to Chair Rodriguez's inquiry, Attorney Cherof confirmed he had reviewed the agreement with the Cornerstone Group and the CRA for the Tax Increment Financing (TIF) and subsidies provided by the CRA in its Homeowners Assistance programs and found no misrepresentations. v. Agenda Approval: A. Additions, Deletions! Corrections to the Agenda Chair Rodriguez requested the following additions as there were a number of items on thp ::lflpnd::l th::lt rlp::llt VI,ith nPIM nl"f"\gr::ln"\c ::Inri the :::>lIf"1r:::>tif"ln f"lf nOI./ r1f"1ll:::>rC' for ,^lhirh ....,'-' ~~"'" \,.01 '-11\....'" ",",,""'\.001110. YI'-II 'I'-V'I fJlV .....11..... """1'\",.1 ~II \,AIIV"'"'U.....V.I VI '-VV \..oIVIIUI.;;J I YV.II\,.;I. the Board had not budgeted. . XIII. New Business! G., "The Second Annual Mayor's "Commit2BFit "Walk 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 14, 2010 . XIII. New Business! H., "The Boynton Gala" B. Adoption of Agenda Chair Rodriguez inquired whether the Board members wished to pull any consent agenda items for discussion. Vivian Brooks! Interim Executive Director! requested Item A, Approval of Minutes of the CRA Board Meeting of November 9! 2010, be pulled for discussion. Motion Mr. Orlove moved to approve the amended agenda. Mr. Hay seconded the motion that passed unanimously. VI. Informational Items by Board Members & eRA Attorney: Attorney Cherof noted he had covered his items earlier in the meeting. Vice Chair Ross reported on the success of Sunday's third and last! "Coffee with the Commissioner" series. She emphasized the CRA had always been included in the Coffee series! as the Agency was an important component of the City. She also thanked all who had attended. Vice Chair Ross had participated in the City's Holiday Parade and Extravaganza, and she thanked staff for their wonderful work. She was able to serve as a judge on Friday night at the Holiday Boat Parade at the Boynton Harbor Marina and Two Georges, and thoroughly enjoyed the experience. She looked forward to attending the Small Business Development Class graduation to be held Friday evening at the Carolyn Sims Center. Mr. Orlove concurred with all of the comments made by Vice Chair Ross relating to the Boat and Holiday Parades and offered special thanks to Kathy Biscuiti for her hard work. He thanked staff as well. Mr. Hay concurred with the above comments. He had attended the Chamber luncheon which featured "Dimensional Harmony," adding the choir had performed well at both the luncheon and Christmas parade. Mr. Holzman concurred with the Board members regarding Ms. Biscuitrs work and that f"lf et~ff I"olatinn tf"l t-ho Boat- D:::>I'":::>r1o Mr l-If"\I'7n"\:::>n ::Ind hie nlloctc had \/iO\Morl tho VI """'\,.ofll 1'-" \.111':;1 \..V \"11",," \. I \.oIIYY""1 I . 1"'....14.111....."...... III..., ':1....."",,,.,.1\......, I '11.......yy~....., \,.11"-' parade! and Ms. Biscuiti had assisted him in collecting Toys for Tots. Ms. Biscuiti had mentioned that 2010 had been the CRA's finest year in terms of the success of Toys for Tots and the Boat Parade. 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 14, 2010 VII. Announcements &. Awards: Kathy Biscuiti, Special Events Di recto rr announced that with the help of CRA staff members Theresa Utterback and Heather Englishr the votes selecting the winners of the Boat Parade had been tallied the night of the Parader and the results were sent to Channel 6. The winners had been notified that night as well. The Awards Presentation would be held at the Chamber of Commerce luncheon on January 12th and a Powerpoint presentation would reflect images of all the boats and the top three winners. A. Movies on the Ave. "The series would be commencing in January, and the first movie of the seasonr Avatar, would be shown at the Amphitheater on January ih at 6:00 p.m. Food and beverages would be available for purchase, and she encouraged all to attend and bring chairs and blankets. Pets would not be allowed. B. Ocean Avenue Concerts The concert series would be opening on January 21st from 6:00 p.m. to 9:00 p.m. at the Amphitheater. The music of Bulldogr a Rock & Roll Band, would be featured. Food and beverages would be available for purchase, and all were encouraged to attend and to bring chairs and blankets. Pets would not be allowed. Both series would continue through May. Chair Rodriguez expressed his gratitude to Ms. Biscuiti for her continued energYr smiles and enthusiasm through all of the events. VIII. Consent Agenda: A. Approval of Minutes - CRA Board Meeting, November 9r 2010 B. Approval of Period Ended November 30, 2010 Financial Report c. Monthly Procurement Purchase Orders D. Approval of Commercial Fac;ade Grant to Cabinets Etc. by RGJ, LLC E. Approval of Business Signage Improvement Grant to Toby Roseman Center for Divorcer Transition and Family Advocacy 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 14, 2010 IX. Pulled Consent Agenda Items: A. Approval of Minutes - CRA Board Meeting, November 9, 2010 This item was pulled by Ms. Brooks, as she wished to make a correction to page 14, XIII. New Business, Item B, "Consideration of Salary Adjustment for Interim Executive Director." The last sentence which readr "The average employee did not forego their retirement and she thought it was important for staff morale..." should be changed to read, "A majority of City employees did not forego their retirement benefits and she thought it was important for CRA staff morale to get some type of compensation since they did give up their retirement benefits for this fiscal year." Motion Mr. Hay moved to make the correction. Mr. Orlove seconded the motion that passed unanimously. X. Information Only: A. CRA Policing Activity Reports B. Public Comment Log C. Staff Electioneering Legal Training D. Small Business Development Program Class Graduation E. Revised CRA Holiday Schedule for 2011 F. Letter to Palm Beach County (Parks & Recreation) Re: Waterfronts Access Bond Funding XI. Public Comments: (Note: comments are limited to 3 minutes in duration) Joseph Elkins, 1850 NE 5th Street, in the Preserver protested the action to approve the conversion of the Preserve to a rental community at the last CRA meeting. He contended that at a meeting held with the homeowners, developer and CRA Interim Executive Directorr Mr. Wolfe had offered a proposal that failed to address the major issue of the rental conversion. He believed a reasonable offer would place monthly occupancy costs on a par with those of the new rental tenants. He felt Cornerstone should either buy the homeowners out entirely or at the after-conversion sale price. As to Mr. Wolfe's assertions that residents could not afford to pay the Homeowners 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 14, 2010 Associations feesr he noted most had stopped paying because Cornerstone had eliminated services. He was astonished that the CRA Board had taken the developer's assertions at face value and approved the conversion. In response to an inquiry by Chair Rodriguezr Mr. Elkins commented he was not represented by Attorney Kino. Mr. Holzman commented on the assertions mader specifically that the Board had approved a change of use. The Board's last vote in no way approved a change of use, and only approved an addendum to a Tax Increment Funding (TIF) agreementr which had nothing to do with the conversion to rentals. Chair Rodriguez added that Cornerstone could rent the buildings if they wished, and nothing could stop them from doing so. The CRA Board had agreed to help subsidize the building through a Tax Increment Funding (TIF) allocation. Mr. Orlove pointed out that the brochure provided by Attorney Kino had indicated 50 units would be set aside as affordable housing. The Board had not changed anything from its last vote regarding the issue of rentable units within the Preserve. Attorney Cherof noted the Mayor covered the point as well as he could have with respect to what the Board had or had not approved. The Board had not approved the conversion from homeownership to a rental property. Attorney Cherof maintained the conversion was a right that existed regardless of the actions of the Board. Attorney Kino noted that although he addressed this issue earlier, he could not controlr nor would he attempt to control the public from speaking during publiC comments. Jennifer Lopez, 1851 NE 5th Streetr in the Preserve, contended the residents had not received notification of the conversion to rental properties. While it had been contended a strict policy had been established for rentersr this was not the case. If a conversion to rentals was necessary, the community should be converted to luxury rather than low-income rentals. If the developer was financially strappedr the property should be sold. Four management companies had taken over in the last three years and services had been discontinued while fees had increased. Erica Poag, 1759 NE 6th Street, asked for and received verification that the City would continue to facilitate ongoing discussions with the developer. She asserted she would not have purchased the property had she known the City would approve the continuation of tax breaks for the developer of an affordable rental community. Lloctor 1.........0... 1851 1\1t: c::th Ctre..nr l"'.."''''^rterl rh^ ~^"';denl-'" ^of: l-h^ Pr^"'^~'^ LJne I'lpllr ......... 1."'1'"''''''''', ~ ~ In....J ...J 1:;1., ':>\.II-'I-'V U 1.111:; I e;;:>1 11.;) VI Llle; e;;:,e;1 ve;. .... ~ Cornerstone should put the development up for sale and allow someone else to step in to complete the project. It had not been his intent to buy into a low-income rental community. 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 14,2010 No one else came forward, and Chair Rodriguez closed the public comments. XII. Old Business: A. Results of CMAR Request for Proposals Ms. Brooks advised staff had received two proposals to the Construction Manager at Risk (CM at Risk) Request for Proposals (RFP) for the construction of the Amphitheater, the moving and renovation of the Ruth Jones Cottage, and the construction of the open space and lighthouse element at the Marina. However, staff had been asked by a member of the Board to obtain additional information that would allow a line-by-Iine analysis per each Division of the Construction Manager at Risk (eM at Risk) standard 16 items for comparison purposes. As suchr staff contacted both respondents and requested the analysis. Staff learned that one of the CRA consultants had inadvertently omitted the plans for the iighthouse element from the construction CD. It was therefore necessary to ask the respondents to review the material to determine whether their pricing would change. Staff felt the matter could not be addressed until January as a result of the additional work requested. The respondents had been encouraged to provide the additional information sooner in order that the matter could be addressed at this meeting as originally planned. However, the additional information had only been received from one of the respondents at 2:00 p.m. this date which did not allow staff sufficient time to prepare an analysis of the submission. As suchr Ms. Brooks recommended the matter be tabled to the January 14, 2011 meeting. This would provide an opportunity for staff to include with the meeting materials all of the responses together with staffs analysis. Motion Mr. Holzman moved to table. Mr. Hay seconded the motion. Chair Rodriguez noted he had requested the additional information. The proposals received were widely spread from a dollar standpoint. As such, he felt it was critical to ensure the Board clearly understood the Construction Manager at Risk (CM at Risk) pricing and services to be provided based upon such pricing. It was hoped the information would have been available for this meeting in order to move the project forward. The:> mf"\tif"\n n::lc::serl Iln::lnimouchr I I....... IV"-I,..n 11""""'''''' "'" \",0111\,.011111111 """1 w Ms. Brooks pointed out the process would not be held up and was moving forward. Through the joint efforts of CRA and City staff, the projects were going through the 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 14, 2010 permitting process. Comments had already been received for the Marina entry feature and the Amphitheater and the documents have been resubmitted together with the recommendations of City staff. Chair Rodriguez added Attorney Cherof would begin preparing the agreement to be entered into with the respondent selected. B. Update on Transfer of Four Lots to Habitat for Humanity Ms. Brooks advised the transfer had been completed and she would be meeting with Mike Campbell, Executive Director of Habitat for Humanity of South Palm Beachr on Thursday. She hoped to be able to discern the date of the ribbon-cutting ceremony at that time. XIII. New Business: A. Consideration of Funding Demolition of Structures in the Heart of Boynton in Partnership with the Citis Code Compliance Dept. Ms. Brooks noted a number of slum and blighted structures existing within the Heart of Boynton (HOB) (Boynton Beach Boulevard north of the C-16 Canal and I-95 to Federal Highway) had been deemed uninhabitable as a result of lack of maintenance or fire. CRA staff had been asked by City staff to consider paying for the cost of demolishing the structures, estimated at $27,000. Staff paid for the costs of the title search, approximately $lr700r through the City Attorney's Office. Ms. Brooks believed the funding was consistent with governing State statutes, and a line item of $25,000 had been provided in this fiscal year's budget for demolition. No other CRA properties would be demolished this fiscal year. It was noted any motion made would refer to the $25rOOO line item. Ms. Brooks advised the City1s Code Compliance Division would provide the "legwork" and permitting fees, if required. The property was neither owned by the CRA nor the City. However, the City had the right to lien or demoiish a structure deemed dangerous or uninhabitable. Attorney Cherof verified the City had demolished properties in the past and would do so in this case as well. Motion Mr. Holzman moved to allow $25rOOO in the demolition line item for this project. Mr. Hay seconded the motion. Chair Rodriguez opened the public comments. 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 14, 2010 Mark Karageorge, 240A Main Boulevard, contended no funds had been allocated over the past two years in the City's budget for abatement issuesr or for Code Compliance to secure buildings or demolish structures. He believed several of the blighted properties were located in the 400 to 500 block on 11th where Habitat for Humanity was currently building a home and the areas on 4th an 5th Avenues were being cleaned up as well. He supported the demolition. Noting Mr. Karageorge's remarks, Mr. Orlove inquired whether he could amend the motion to concentrate on the properties on 11th Avenue and if funds became availabler consideration could be given to those properties on 5th Avenue. Chair Rodriguez indicated the City Commission could make that change if they chose to do so. The motion passed unanimously. Chair Rodriguez noted that six of the eight items under New Businessr including Items G and H which were added to the agenda, included a request for the allocation of new dollars. He inquired whether Susan Harris could provide an update on available monies. Susan Harris, Finance Director, advised that staff had been informed by representatives of the the Promenade that they were not going to draw down their Tax Increment Financing (TIF) or Direct Incentive Funding Agreement (DIFA) related dollars this coming fiscal year, which would provide staff with approximately $159rOOO. She verified a line item of $25rOOO had been provided for site work and demolition fees. Chair Rodriguez cautioned the Board to consider the entirety of the projects set forth on the agenda and the financial ramifications. B. Consideration of Funding a Feasibility Analysis for the Creation of a Green Market in Downtown Boynton Beach Ms. Brooks had not realized this item would be addressed at the City Commission meeting. Chair Rodriguez had inquired as to the feasibility of a green market in the downtown area. As suchr Ms. Brooks met with Peter Robinsonr who created and operated the West Palm Beach Green Market and is currently operating the Oceanside Green Market on the beach in Lake Worth. Mr. Robinson submitted a proposalr which 'A':::>C inrl.,r1orl W'lth tho rY'Iooting matorblc th~t inrludorl tho fl'\lll'\,^ling e1orY'lont-C'. YYU.,,} II I '-'1l.,AU\"",oU II ,-'I\";': 1I1~~""1I1 \,.,.011"-'11,;;), \,.,IIU\.. 111\.,,1 \;;U "'Il~ IVIIVVVII 1"'111\.....1\..;.. 1. Feasibility of the financial success of a market in downtown Boynton Beach 2. Identify type of market, day of the week and time for optimum success 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 14, 2010 3. Recommendation of the best site for a market 4. Creation of a start-up budget 5. Creation of an operating budget 6. Identification of potential vendors 7. Creation of a marketing plan 8. Operational details The analysis would be completed over several months at a cost of between $27,000 and $28,500. The funds could be secured by amending the budget to reallocate Tax Increment Financing (TIF) monies to the Promenade. Ms. Brooks did not recommend going forward without the information to be provided by the analysis. Chair Rodriguez felt the cost of the analysis was somewhat steepr and if it were demonstrated the success of a market in the downtown area would not be feasibler he did not believe the remaining elements of the proposal should be considered. Chair Rodriguez commented the concept proposed was similar to that of the Boynton Gala. In addition to the green market, other concepts were discussed including a public market or event unique to Boynton Beach. It was advocated a few, rather than all of the elements proposed by Mr. Robinson, be explored. As suchr it was suggested Mr. Robinson be asked to provide a proposal relating to the feasibility of a market, the recognition of a market concept that is different and unique, and a recommendation for the best site for a market or event. Motion Mr. Holzman moved to direct staff to request a proposal from Peter Robinson for the first three items on the list stated in the agenda -- the feasibility of a marketr whatever market that might be, identification of a market, a day of the week and a recommendation of a best site for that market. Chair Rodriguez requested item 4 on the listr "the creation of a start-up budget/, be included in the motion. Mr. Holzman agreed to the request. Mr. Orlove seconded the motion. It was questioned whether a Request for Proposals (RFP) was needed. Attorney Cherof opined that Mr. Robinson could be included in one of two exceptions to the Procurement Code Provision for an RFP. He would be considered the type of consultant who was unique in nature or, alternativelYr that he would be a sole source provider. Attorney Cherof did not believe the Board was in a position to make either determination at this meeting. Staffr however, could make that determination with the assistance of Attorney Cherof, and this would be addressed at the next meeting. 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 14, 2010 Chair Rodriguez opened the public comments. Victor Norfusr 261 N. Palm Drive, commented local vendors frequenting City events were required to make application and pay a participation fee. He felt Community Gardens and Habitat for Humanity were favorable venues for engaging local vendors. A bazaarr event or market held monthly rather than weekly would draw more participants at the local level. Chair Rodriguez noted the Board recently initiated contacts with local vendors and CRA staff provided literature informing the vendors of what was necessary to participate in CRA events. The motion passed unanimously. C. Consideration of Sponsoring Habitat for Humanity, Collegiate Challenge Ms. Brooks noted the Board had sponsored this event in the past. The event provided an opportunity for college students to contribute to the local community and, in this instance, the students would be building a house on NE 11th Avenue in the Heart of Boynton (HOB). The sponsorship options available include: . Option 1: $200 as a lunch sponsor; and . Option 2: $500 as a T-shirt sponsor Motion Mr. Holzman moved to approve Option 2 to be a T-shirt sponsor. Vice Chair Ross seconded the motion. Vice Chair Ross reminded all that Habitat for Humanity had been given a tribute and recognition at a City Commission meeting for its hard work in the City and CRA district. Chair Rodriguez opened the public comments. No one came forward and public comments were closed. The motion passed unanimously. D. Consideration of Amendment to Lease on 710 N. Federal to Include the Cost of Architectural and Mechanical Plans 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 14, 2010 Ms. Brooks advised staff had been working on the design for the interior of 710 N. Federal Highway (the former Holiday House), and a conceptual design had been submitted by REG. However, while REG assisted staff in laying out the spacer staff felt REG's costs for the construction drawings and mechanicals were excessive. If these elements were to be added to Mr. D'Almeida's scope of work and included in the terms of the leaser the City would realize a savings of $10rOOO. Motion Mr. Holzman moved to approve an amendment to the lease to include the costs of $7,700. Mr. Hay seconded the motion. Chair Rodriguez opened the public comments. No one came forward and the public comments were closed. The motion passed unanimously. E. Discussion of Potential Direct Incentive Funding Agreement between the CRA and Gulfstream Gardens to Create the City1s First Green Residential Project Ms. Brooks explained the item was brought before the Board for discussion purposes. Gulfstream Gardens is a 15-acre site on South Federal Highway, just north of the new WalMart project. Construction of both projects would result in the redevelopment of 27 acres on South Federal Highway. (Chair Rodriguez left the dais at 7:52 p.m.) Gulfstream Gardens has been approved for 308 residential units to be sold at market rate. It was the intent of the developer to design the building with energy-saving elements that could reduce greenhouse gas emissions by 70%, thereby furthering the goals of the City and CRA to create a green community and reduce greenhouse gas emissions. The addition of the green elements, however, would also result in significant additional costs to the project. (Chair Rodriguez returned to the dais at 7:54 p.m.) If it were the Board's desire to move forward, a Tax Increment Financing (TIF) "",,,..nomenr ,^If'\lllrI hQ nernc-C"", 1"\ 1 Onco tho nrf"\:iert h"",c hoon romnlotorl -:>nrl enro..orl U':;I' e;e;1 I.. yyv....,u ue; \,.,....;>.;>UI y. e; 1..11e; 1-" vJ \,., ,'u.;;> u..."", \,., I-"...I.....U UIIU 'I."" ...u on the tax rolls, revenue would be shared by the developer and the CRA in order to offset the developer's additional costs for the green elements. 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 14, 2010 Erin Deady, with Lewis Longman & Walkerr P.A. presented an overview of the projectr a copy of which is located in the Office of the City Clerk. She noted Rick Lococor of Gulfstream Gardens, had made it his mission to create the design of the project which included 32 buildings and incorporated 12 different energy efficiency features. Combined, these features, along with a solar photovoltaic system, would result in a net-zero energy use of the building. The project was unique not only to the City of Boynton Beach, but to the country as well, and is the largest net-zero energy complex in the United States. The developer had coordinated a greenhouse gas reduction analysis using CDM, the consultant engaged for the City's Climate Action Plan. Economic benefits for future residents and return on investments had been explored. The project would be highly visible nationally and would provide a huge marketing opportunity for the CRA and the City. With the anticipated 70% reduction in greenhouse gas emissions, the solar photovoltaic system would cover the remaining 30% of the energy needs of the building and would potentially produce an excess in energy that could be used throughout the common elements of the project. A comparison of the greenhouse gas reductions for this apartment complex project would equate to 7% of the City's emissions. It was anticipated the project would be completed over an 18-month period, creating approximately 425 to 439 jobs over the duration of the project. The total cost of the energy-efficiency measures and solar photovoltaic system would be $8.5 million. The energy efficiency measures alone would provide a quicker payback, but when combined with the solar photovoltaic systemr the payback would average out to 21 years. The shelf life on a solar photovoltaic system would amount to 30+ yearsr but the technology has improved every year and the developer has the ability to research the best technology for the best payback. Ms. Deady indicated the developer was requesting to enter into a Direct Incentive Program and for the costs of the energy efficiency measures to be offset. If the Board approved the conceptr the next step would be to direct Ms. Deady to work with staff and develop provisions to be included in the Direct Incentive Funding Agreement. Thereafter, the agreement would be brought back to the Board for final approval. Mr. Orlove inquired as to the excess energy to be used throughout the common elements of the project. Ms. Deady explained lighting had been considered as part of the energy model used, and a portion of this energy could be used for the common elements. Mr. Orlove inquired as to the viability of a project of this size and naturer when a number of buildings in the CRA district were currently empty. Ms. Deady indicated rental units typically enjoyed a 5%-7% higher occupancy rate when they 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 14, 2010 were designed pursuant to energy efficiency standards. The energy efficiency features would make the rental of the complex more attractive. Rick Lococo addressed the viability issuer noting the demand for good quality, market rate rental apartments in the Cities of Boynton Beachr Delray Beach and Boca Raton, a fact confirmed by a number of studies and reporting agencies. Examples of market rate rental apartments would include Las Ventanasr which is currently 86% occupied, and Worthing Place, currently 51% occupied. A start date in February or March was contemplated, with an 18-month buildout in 2013. Mr. Holzman expressed concerns relating to the viability of the project, as many condominiums and rental apartments along Federal HighwaYr as well as an entire community on the waterr are currently unoccupied. Chair Rodriguez inquired as to the anticipated subsidy to/ be provided by the City or the eRA. Ms. Deady responded she could not provide the figures at this time as she would be exploring other viable funding incentives and opportunities to bring costs down. She referred to a new congressional tax bill currently being debated that would extend the Department of Treasury Cash in Lieu of Grantr providing a 30% tax credit for solar installations or the cash upfront. Ms. Brooks indicated negotiations would include a direction to staff to begin hammering out some of the more detailed provisions of the agreement. It would be necessary for a third party to certify the construction documents and verify the elements and goals to be achievedr including the reduction of greenhouse gases. The agreement would also provide that the CRA would reduce its funding proportionately with regard to any funding received by the developer through tax credits or other program. Ms. Brooks assured CRA staff had the capability to negotiate the agreement. Chair Rodriguez had no objection to supporting the matter as the Interim Executive Director indicated she had the ability to proceed with the agreementr and as the developer would be securing other viable funding opportunities. Vice Chair Ross inquired whether Ms. Brooks had discussions with the City's sustainability team. Mr. Brooks responded she had forwarded the information to the team. She reiterated the need for the third-party' verification to ensure clarity of the public benefit. There was no risk to the agency as no upfront money would be Pl"f"I\rirlorl IVV'\.A\",o\,..l. Mr. Holzman expressed concerns in "blazing a trail/' specifically with regard to the value of the improvements. Unfavorable decisions had been made in the past and as 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 14; 2010 such, consideration should be given to all of the other agreements previously entered into for which the CRA had not been paid back. He articulated he was not comfortable doing anything at this time. Chair Rodriguez pointed out Ms. Brooks had outlined what she would be doing to prepare for potential subsidies or grants in the future, but these would not be occurring in the first step of the process. Ms. Brooks would undertake some of the legwork and had the capacity to commence negotiations. He felt it was important to proceed cautiously. He suggested staff address this matter before the Board at a future date after some of the legwork had been completed and federal dollars had been acquired by the developer. There would be no subsidy provided upfront nor would there be any risk to the CRA during the first step of the process. Mr. Hay expressed he would like to move forward with caution. While not much historical data was available; he believed Ms, Brooks would bring something back to the Board that would allow the members to feel more comfortable with the project. While concurring with Mr. Holzman's concernsr he looked forward to the possibilities that could be realized and indicated he would be performing his own research as well. Vice Chair Ross inquired whether CDM, the consultant engaged for the City's Climate Action Plan, would have a roll in the matter at this point. Mr. Deady advised she had requested CDM crunch numbers and wanted to ensure their methodology was consistent with what the City had already done. Motion Mr. Orlove moved to direct staff to look into an incentive funding agreement and possible other means to work with the developer of the Gulf Stream Gardens project. Mr. Hay seconded the motion. Mr. Holzman noted one of the factors discussed was the creation of jobs. He felt it was important this issue be considered during the evaluation, and that any jobs created be filled by individuals residing in Boynton Beach. Chair Rodriguez opened the public comments. No one came forwardr and the public comments were closed. The motion passed unanimously. F. Discussion of CRA Board Meetings Dates for 2011 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 14, 2010 As set forth in the meeting materials, Ms. Brooks noted the November 8, 2011 meeting would fall on Election Day. As such, it was agreed to move the meeting to November 9th. It was noted the March 8, 2011 meeting would also fall on Election Day and as suchr should be moved to March 9th. Motion Mr. Holzman moved to approve with the addition. Mr. Hay seconded the motion. Chair Rodriguez opened the public comments. No one came forward, and the public comments were closed. The motion passed unanimously. G. The Second Annual Mayor's "Commit2BFit " Walk (Mr. Hay left the dais at 8:21 p.rn.) Chair Rodriguez sought concurrence from the Board relating to support from CRA staff for the event. While no dollars had been allocated last yearr staff had participated. Contributions of approximately $6rOOO had been received last year from the communityr and breakfast and T-shirts had been provided to participants. Chair Rodriguez requested a motion of support from the Board for an allocation of dollars and for staffs participation in this coming year's event, which he hoped would occur in March or April. Wayne Segalr the City's Public Affairs Director, was in search of weekends for the event that would not conflict with other events in the County. Motion Mr. Holzman moved to direct staff to work with the City in scheduling the Mayor's Walk as well as allocating up to $3,000 for the Mayor's Walk. Ms. Harris noted $7,000 had been budgeted in the General Fund for the entire year. While monies from other sources were available, funds for the event would normally be allocated from the General Fund. Mr. Holzman included in his motion that up to $3rOOO should be allocated from the General Fund for the Mayor's Walk. Mr. Orlove seconded the motion. Chair Rodriguez opened the public comments. No one came forward and the public comments were closed. 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach; Florida December 14, 2010 The motion passed unanimously (Mr. Hay was absent for the vote.) (Mr. Hay returned to the dais at 8:24 p.rn.) H. The Boynton Gala Chair Rodriguez believed this item had been covered in the motion approved pertaining to the feasibility of markets and events. Vice Chair Ross believed "GALA" stood for Great American Love Affair," and inquired whether this name or another name would be utilized. Chair Rodriguez indicated he was less concerned with the namer but desired an event downtown that would attract visitors and artists. Mr. Orlove wished to oursue the issue discussed earlier in terms of a market rather I than a signature event. With the Movies and Concerts on the Avenue series already in existence, he did not favor an event that would conflict with those held in other cities. He did not believe the GALA should be piggybacked on the action taken with respect to the markets/events discussed earlier. Chair Rodriguez explained he addressed the item at this time so that an analysis could be made and discussions could commence in order to include the GALA in next year's budget. If the Board agreed, he suggested staff have a preliminary discussion with the City to determine how the event had been organized in the past, the "pros and cons" of the event and why it had been discontinued. Staff would come back to the Board with a basic analysis and points for discussion. The Board concurredr and a consensus was achieved. Ms. Brooks reminded the Board that upon the completion of the new Amphitheater, additional events would be scheduled and weekly musical concerts featuring local bands were anticipated. XIV. Interim Executive Director's Report A. Project Status Update Updates had been provided in the meeting materials. As there were no questions from the Board membersr this item was not discussed. 18 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 14, 2010 B. Memo Regarding CRA Funding of City General Operation Expenses Ms. Brooks discussed a memo she sent to City staff regarding expenditures of eRA dollars. City staff had requested CRA staff place three water meters in the CRA's name to cover plant watering costs for the Seacrest project. She addressed this matter for future reference so that the Board would be aware of the expenditures allowed by the State. She noted the expenditures were broad in nature. The appropriate State Statute provided, ''The following projects may not be paid for or financed by increment revenues...(c) General government operating expense unrelated to the planning and carrying out of a community redevelopment plan." Attorney Cherof explained that consideration of expenditures should always be determined on a case-by-case basis. At the time of approval, all expenditures of CRA funds should include some reference to the provision of the eRA Plan that justified the use of those funds. Mr. Orlove believed the issue might be moot, as it was his understanding this would be addressed by the City. XV. Future Agenda Items: A. Discussion Regarding Process for Replacement of Executive Director - Tabled 10/12/10 Chair Rodriguez wished all a Merry Christmas, Happy Chanukah, Happy Kwanzaa, Feliz Navidad and a Happy New year. XVI. Adjournment There being no further business to come before the Boardr the meeting properly adjourned at 8:35 p.m. Stephanie D. Kahn Recording Secretary 12/27/10 19