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Minutes 09-11-01MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY REGULAR MEETING HELD IN COMMISSION CHAMBERS, CITY HALL, BOYNTON BEACH, FLORIDA ON TUESDAY, SEPTEMBER 11, 2001 AT 6:30 P.M. Present Larry Finkelstein, Chairman Jeanne Heavilin, Vice Chair Don Fenton Michelle Hoyland Henderson Tillman Quintus Greene, Director of Development/CRA Lindsey Payne, Assistant City Attorney Absent Jos6 Aguila Alexander DeMarco I. Call to Order Chairman Finkelstein called the meeting to order at 6:37 p.m. II. Roll Call The Recording Secretary called the roll and declared that a quorum was present. III. Agenda Approval A. Additions, Deletions, Corrections Chairman Finkelstein announced the following changes to the Agenda: Item VlI.A.--Variance for Cherry Hills, Lots 312 and 313, has been withdrawn. Item IX.A.-ClP Fund Transfer Authorization, should be tabled due to the fact that City Manager Bressner is unable to be present tonight B. Adoption Motion Vice Chair Heavilin moved to approve. Motion seconded by Ms. Hoyland and unanimously carried. IV. Approval of Minutes - July 28, 2001 Workshop August 14, 2001 Regular Meeting August 22, 2001 Special Meeting Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida September 11, 2001 Motion Ms. Hoyland moved to approve. Motion seconded by Vice Chair Heavilin and unanimously carried. IV. Director's Report: A. Financial 1) July 2001 Financial Statement The balance in the CRA account as of August 2001 totals $994,088 down from $1,017,705 from the previous month. The line item for CRA Land Acquisition has an expense of $18,215. This represents two checks: one in the amount of $11,000 and the other for $1,000. These checks were needed to participate in the foreclosure sale of the property located at 907 N. Federal Highway. Other expenses included in this line item are $4,600 for Michele Mellgren (since there was no line item for consultant services, which the Finance Department will correct) and $1,590 for survey work for the promenade. Mr. Tillman requested that Mr. Greene present a full report on the results of the foreclosure sale for the next meeting, as well as an explanation why the sale did not go through. Mr. Greene wil provide this. Mr. Fenton inquired on the whereabouts of the two checks. Mr. Greene stated that the checks were returned to the Finance Department for handling and this will be reflected on next month's balance sheet. Vice Chair Heavilin inquired why there were legal fees for certain months and none for other months. Mr. Greene responded that as soon as the bills are received and reviewed, they are forwarded to Finance for further handling. He was not certain about the timing of the bills. Staff services totaled 113 billed hours for $3,235.45. There was an additional staff expense of $326.62 for materials. Mr. Tillman noted that he receives minutes from the CRA staff, as welJ as from the City Clerk's Office and questioned if both departments were billing the CRA for these copies. Mr. Greene replied that the CRA is only being charged once. The only expense the CRA pays towards the City Clerk's Office is overtime charges for a recording secretary. (Please note that the City Clerk's Office does not charge the CRA or any City Board for copies of Board minutes.) 2 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida September 11, 2001 2. Loan Status (to be addressed under New Business) B. Project Updates 1) Federal Highway The consultant has provided staff with a draft of recommended land use regulations for the proposed mixed-use zoning districts for the Federal Highway Corridor. Staff has been fine-tuning the recommendations and the final recommendations will be presented to the Board at its October regular meeting. Staff is recommending that the CRA hold a workshop on October 6t~ to give the Board, as well as the public, an opportunity to review and comment on the proposed changes prior to the October 9th meeting. 2) MLK (Heart of Boynton) A community workshop took place on Saturday, August 25th at Poinciana Elementary School. The consultants made a presentation and there was a great deal of discussion. The following are some of the recommendations that were made: · Take over and demolish the Cherry Hills Housing Project. · Land assembly in the neighborhood around MLK Boulevard. · Future study of the Shepard Addition as a m~xed use area. 3) Marina Work on Casa Loma drainage is currently ~n permit review and fill is being brought in. A Marina Project update wil be presented to the City Commission on October 2nd. C. Commission Actions On August 21st the City Commission approved two items on the Consent Agenda, which were variances for Lots 62 and 63 in the Cherry Hills section. D. Future Agenda Items A land use amendment for Dakota Lofts on South Federal Highway will be heard by the Board on October 9~. Vice Chair Heavilin inq uired if action by the Board was necessary to approve the October 6th workshop. Mr. Tillman asked what the purpose of the workshop was. Mr. Greene said that staff would be providing the Board and the public with an opportunity to have some perception and input on staff's approach towards zomng along the Federal Highway Corridor. Currently there are many uses. 3 Meeting Minutes ~'~ Community Redevelopment Agency Boynton Beach, Florida September 11, 2001 Staff is coming up with two basic categories; mixed use and mixed-use light. Within those two categories certain uses would ~)e allowed as a matter of dght, certain uses will not be allowed and certain uses will be allowed with restrictions. The restrictions will be identified. Mr. Fenton inquired if the public would be notified and Mr. Greene said that the usual public notice would be posted. When the formal public hearing takes place, everyone would be notified. There was a consensus to hold a workshop on Saturday, October 6th at 9:00 a.m. in Conference Room C'to be publicly noticed. *(Location later changed to Commission Chambers) VI. Announcements and Presentations None VII. Unfinished Business A. 2001-2001 Budget At the Board's request, two budgets were prepared for 2001-2002. One budget is based on City staff continuing to serve as the primary staff to the CRA Board (Alternative A). The second budget was prepared with the CRA having its own independent staff (Alternative B). Total resoumes available to the CRA for the new budget year are projected at $4,943,240. This includes the $3 million loan, approximately a $1 million carryover from the current year, and $943,240 in TIF revenues. Alternative A: This budget includes funds of $3.87 million for land acquisition and $250,000 for improvements; It is estimated that $4.1 million will be available for capital expenditures and allows for approximately $300,000 in reserve for future appropriation. Alternative B: This bUdget includes salaries for a Director, Administrative Secretary and Accountant totaling $136,532 plus FICA and benefits of approximately $22,000. The Director's salary would range between $75,000 to $80,000; Personnel costs would be approximately $158,669. Other expenses in this budget include the costs for mileage reimbursement, office space, office equipment, computer maintenance and the cost of connecting to the City's server, membership and other miscellaneous operating costs: City staff services would then be cut back by two-thirds. Total operating costs would come to $497,000. This would leave approximately $3.987 million for capital expenditures. 4 Meeting Minutes ~' Community Redevelopment Agency ' Boynton Beach, Florida September 11, 2001 Ms. Hoyland questioned why City staff charges the Board whenever a person appears before the Board for some type of application. Chairman Finkelstein noted that the City charges the applicant a fee, but the funds go into the City's General Fund. He suggested that CRA Boards in other cities be contacted to determine how they handle this. Mr. Greene said that the Board needs to decide which budget it would like to adopt and whether it wished to remain with City staff or retain an independent staff. Mr. Tillman felt that the Board's first pdority should be to recruit and hire a full-time Director. The Director would be the person who should choose his own staff. Mr. Greene agreed that th Is would be the best way to go and suggested that the Board should include under "Regular Salaries" a figure for a Director. This would allow the Board time to advertise and recruit. Attorney Payne pointed out that the Ordinance would also have to be changed s~nce it currently states that City staff would be the staff of the CRA. City Commission approval would also be required. Chairman Finkelstein would like to see a line item added that would set aside some funds for future projects. Vice Chair Heavilin suggested that funds could be added to line item 63-07 (CRA Improvements). Motion Mr. Fenton moved to accept Alternative B as the budget. Motion seconded by Mr. Tillman and unanimously carried. Chairman Finkelstein requested that Mr. Greene follow through with arranging a workshop with the City Commission. Mr. Greene said he has been working on this, but was having a problem getting everyone together due to conflicting schedules. VII. Public Hearings: Variances Project Name: Agent: Owner: Location: Description: Cherry Hills - Lot 312 and 313 Robert Dwelle Boynton Beach Faith Based Community Development Corp. 400 Block NW 11 Avenue, Lots 312 and 313 Request for relief from the City of Boynton Beach Land Development Regulations, Chapter 2, zoning, Section 5, F.2.a. to build a single-family home on a non-conforming lot zoned, F~-2, to include a 2-foot reduction from the twenty-five (25) foot rear yard setback 5 Meeting Minutes ~ Community Redevelopment Agency Boynton Beach, Florida September 11, 2001 required by code to allow setback. (Application withdrawn) a 23-foot rear VIII. New Business A. CIP Fund transfer authorization Postponed B. CRA Loan Authorization Resolution Mr. Greene referred members to the Resolution in their packet authorizing the ~ssuance of the note by the CRA in the principal amount of $3,000,000 to finance the cost of various community improvement projects through a loan from the Bank of America. The City's bond counsel, Mr. Mark Raymond, who was present, prepared the documents. Also included in the packet were copies of the promissory note, loan agreement, and transcript of proceedings. The City Commission will also have to execute a ResoJ ution agreeing to the CRA entering into the loan. The City would be the guarantor of the loan. Mr. Mark Raymond, 625 N. Flager Drive, 9th floor, West Palm Beach, Florida assumed the podium. Mr. Tillman asked for clarification regarding the City acting as guarantor. Mr. Raymond explained that if the CRA failed to pay any amount it owes to the Bank for any reason, the Bank could require the City to make the payments. Mr. Fenton questioned why the interest rate on the loan went up, since interest rates have been going down. Also, he noted that the Board was being asked to approve the loan without a cap on the loan rate. Mr. Raymond responded that the Bank issued a commitment letter that contains an index, but due to the occurrences in New York, he was unable to obtain the most current index. Mr. Greene said that the Bank provided him with an amortization schedule in June 2001 and at that time the effective annual rate was 7.278%. Mr. Raymond stated that as of July 25t~, the rate was 6.92%. The index used was the 15-year U.S. Swap Rate, plus 72 basis points. ~ice Chair Heavilin asked for clarification on the pre-payment fee. Mr. Raymond ~stated that the note contained a make-whole provision, ~vhich means if you make i prepayment when interest rates go down, the borrower would have to pay the 3ank an amount sufficient to make it whole. However, if a prepayment were "nade when interest rates have gone up, there would be no penalty. 6 Meeting Minutes ~=' ~. Community Redevelopment Agency Boynton Beach, Florida September 11, 2001 Chairman Finkelstein inquired about the newly inserted paragraph (h) on Page 7. Mr. Raymond stated that the purpose of this provis on was to allow the bank officer to book the loan in compliance with a covenant in their loan documents that Was not applicable to this borrowing. This new language simply states that the CRA will pay the principal and interest as Jt becomes due. Proposed CRA Resolution No. 01-01 Re: Authorizing the issuance of a note of the Agency in the principal amount of $3,000,000 to finance the cost of various community redevelopment projects Attorney Payne read Proposed CRA Resolution No. 01-01 by title only. Motion Mr. Tillman moved to approve Proposed CRA Resolution 01-01. Motion was seconded by Vice Chair Heavilin. The Recording Secretary polled the Board. The vote was unammous. IX. Public Audience None X. Other None Xl. Adjournment There being no further business the meeting properly adjourned at 7:40 p.m. Respectfully submitted, Barbara M. Madden ecording Secretary one tape) (September 12, 2001) 7