Loading...
Minutes 02-14-12 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD ON TUESDAY, FEBRUARY 14, 2012 AT 6:30 PM IN CITY COMMISSION CHAMBERS, CITY HALL, 100 E. BOYNTON BEACH BLVD., BOYNTON BEACH, FLORIDA PRESENT: Woodrow Hay, Chair Vivian Brooks, Executive Director Bill Orlove, Vice Chair James Cherof, Board Attorney James "Buck" Buchanan Mark Karageorge Marlene Ross ABSENT: Steve Holzman I. Call to Order Chair Hay called the meeting to order at 6:31 p.m. II. Pledge to the Flag and Invocation Chair Hay gave the invocation and Vice Chair Orlove led the Pledge of Allegiance to the Flag. II. Roll Call The Recording Secretary called the roll. A quorum was present. IV. Agenda Approval: A. Additions, Deletions, Corrections to the Agenda Attorney Cherof requested a closed -door session be held before the next regular Community Redevelopment Agency meeting. The session was anticipated to take about 45 minutes. There was agreement the Board would convene at 5:45 p.m. Vivian Brooks, Executive Director, added to Old Business, Item 11. E., Discussion of Lease Terms for the Ruth Jones Cottage. Ms. Brooks pulled items 7.D. and E. from the Consent Agenda, at the request of the applicant. 1 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 14, 2012 Vice Chair Orlove explained he would comment on Informational Item 9.B. B. Adoption of the Agenda Motion Vice Chair Orlove moved to approve the agenda as amended. Mr. Karageorge seconded the motion that unanimously passed. V. Informational Items and Disclosures by Board Members and CRA Staff: A. Disclosure of Conflicts for Items Presented to the CRA Board on Agenda Items There were no disclosures made. B. Informational Announcements None. VI. Announcements & Awards: A. Ocean Avenue Concert — Friday, February 17, 2012 B. Heritage Celebration — Saturday, February 18, 2012 Ms. Biscuiti announced this Friday's concert featuring the New Horizon Band. Attendees were requested to bring a chair and blanket, and Gourmet Food Trucks would be on site. The concert would be in honor of the Heritage Celebration and would continue the next day from 11 to 4 p.m. with the band, CP + 3, a rhythm and blues and jazz band. Eleven community groups would be performing, interspersed with the band and amphitheater activities. Community vendors, a rock wall, bounce house, trackless train, face painting and craft table would be available as would Gourmet Food Trucks specializing in ethnic foods for the day. All were invited to attend. C. Downtown Open Market — Sunday, February 26, 2012 This event would be held both inside and outside the Civic Center. The band, Cricklewood, would perform and Gourmet Food Trucks would be onsite. There was also an art district event occurring that would be in another area of the City and a bus was available to take attendees to the district and visa versa. 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 14, 2012 D. Movies on the Ave. — Friday, March 2, 2012 The movie, Moneyball, would be showing at 7 p.m. with Gourmet Food Trucks on site. The screen was installed at the amphitheater and no matter where one sat, the view would be good. E. Sunday Funday — Sunday, March 11, 2012 The Sunday Funday event would be held at the Marina from 1 — 4 p.m. Inflatable activities for youth, as well as art, crafts and more. It was a fun family event and the members were urged to attend. Mr. Karageorge commended Ms. Biscuiti for her work on the events and agreed the amphitheater screen provided for good views for all. He pointed out at the last Funday event, the Boynton Beach Canine Corp and Fire Rescue were present giving screenings and demonstrations. The SWAT team was there and it was a great event. Chair Hay agreed and commended City and CRA staff for a great job. VII. Consent Agenda: A. Approval of Minutes — CRA Board Meeting January 10, 2012 B. Approval of Period Ended January 31, 2012 Financial Report C. Monthly Purchases Orders D. Approval of Commercial Facade Grant to Family Development Partners, Inc. (Subway Regional Offices) This item was pulled. E. Approval of Interior Build -Out Grant to Family Development Partners, Inc. (Subway Regional Offices) This item was pulled. F. Approval of Interior Build -Out Grant to Cuthill's, Inc. d /b /a Cuthill's Backyard G. Approval of Rent Subsidy Grant to Cuthill's, Inc. d /b /a Cuthill's Backyard H. Approval of Interior Build -Out Grant to GPS PEO, Inc. I. Approval of Interior Build -Out Grant to Law Offices of Angelo A. Gasparri, P.A. d /b /a Debt Relief Law Center of PBC 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 14, 2012 VIII. Pulled Consent Agenda Items: D. Approval of Commercial Facade Grant to Family Development Partners, Inc. (Subway Regional Offices) E. Approval of Interior Build -Out Grant to Family Development Partners, Inc. (Subway Regional Offices) Ms. Brooks explained these items were pulled at the request of the applicant due to their decision to purchase a different building. IX. Information Only: A. Public Comment Log B. Update on Marketing Incentive Program Vice Chair Orlove reviewed the backup and thought the proposed ads and messaging looked good. He complimented Ms. Walsh, Marketing Director, on a good job. He liked the look and feel of the advertisements and hoped it would draw more people to the area. C. Events Recap - January 2012 D. Memo Regarding Mr. Oyer's Statements at Building Board of Adjustment and Appeals IX. Public Comments: (Note: comments are limited to 3 minutes in duration) Chair Hay opened Public Comments. No one coming forward, Public Comments was closed. XI. Old Business: A. Update on Outcome of the Palm Beach County Board of Commissioners Decision on the Dive Shop Demolition and Discussion of Future Action and Consideration of Letter of Support to BCC Ms. Brooks explained she and Mike Simon appeared before the County Commission on January 24, 2012, requesting the County, under their existing easement agreement, allow them to demolish the existing building at the Marina. Staff felt the issue was not a significant request as the building was aged and the tenant moved to another location across the street. The County wanted staff to try to fit a retail store in the building they were proposing to construct on the waterfront parcel, where the dock master and public restrooms were located. This would add at least another 1,500 square feet to that 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 14, 2012 building, which would violate the tri- partied agreement that was in effect. The County then wanted the CRA to keep the building and keep the Dive Shop as a tenant. The County believed the building was historic, and the proposed building on the waterfront parcel was "made of sticks." Ms. Brooks explained the meeting consisted of a barrage of questions and the County requested they come back in 30 days and advise them what they would do to keep the tenant. Ms. Simmons, owner of Splashdown Dive Shop, was present at the County Commission meeting and stated the CRA put her out of business even though Ms. Brooks had a signed lease for her current location and had documentation showing the CRA awarded her nearly $40,000 in relocation funding. The City's Historic Planner issued a letter indicating the building was not historic, and a letter from the Marina Village Master Association was also obtained which indicated the Association would not support amending the tri- partied agreement to add retail at the waterfront parcel. There was retail space readily available in the Marina Village building that was open. The Association does support the Master Plan for the Marina. Ms. Brooks would return to the County Commission and again make their case. Under the terms of the agreement with the County, staff had to request the County's permission to demolish the building. She clarified it did not say the building could not be demolished. It was pointed out other marinas do not have dive shops on the premises and Ms. Brooks planned to submit letters from such dive shops indicating they were operating just fine, when she next appeared before the County. Ms. Brooks reviewed the agreement for the Palm Beach Yacht Club which received $11 million in County funds and there was no such permission clause. Boynton Beach received $2 million in funding and had the clause. Sailfish Marina, the most successful Marina, did not have a dive shop on the premises. There was lengthy discussion on this item. Not all County Commissioners were present for the item, but Commissioners Vana, Markus, and Aaronson were not supportive. The backup information included with the item showed there was a clear way for the dive shop to bring their equipment to the boat dock. The Commission was not amenable to reviewing the materials which included the agreement with Ms. Simmons who had agreed to move, and everything else. All of the Board members present were in favor of signing a letter of support to present to the County. Interim City Manager LaVerriere agreed to attend the next County Commission meeting with them. A suggestion was made to use Option 1 if the County Commission did not support the CRA's plan. It was important the County Commissioners read the backup materials as the building does not currently meet Code. Additionally, the County approved the Marina plan which showed the area as green space. 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 14, 2012 Additional discussion followed about the agreement made between the CRA and Splashdown Divers, which permitted Ms. Simmons to apply for grants; however, that was incumbent on them moving and needing assistance to do so. In light of Ms. Simmons orchestrating the issue on the County Commission level to oppose the demolition of the building, it was questioned whether that action was contrary to the agreement they had. Attorney Cherof explained there was nothing in the agreement that barred Ms. Simmons from advancing the argument before the County. It was not a direct violation of the agreement. As to providing Ms. Simmons with the Facade Grant, Rent Subsidy, and Build -out grant funds, which were approved but not yet released, a question was raised if the funds could be held pending the outcome of the matter. The monies were taxpayer dollars and it appeared wasteful to release them at this point. Attorney Cherof advised that action be inconsistent with the prior actions of this Board. One document was a settlement agreement and the others were applications for CRA monies. The CRA would be in a better position with the County to continue to honor those commitments. He also explained there was time, if their determination was inconsistent, to reconsider the matter of the incentives. Those actions were the higher ground. As to recouping any funds released, the CRA would not be able to recover them. Ms. Brooks explained rent subsidy payments are released on a quarterly basis to tie into the UCT6 reports, and Ms. Simmons had just requested her first rent subsidy payment so funds would not be released until after April. With respect to the other two payments, there were many variables at this point and it was unknown. Attorney Cherof reiterated if the County Commission denied the CRA's application and did so, in part, because of the presentation made by Splashdown Dive Shop, the Board was in a position to reconsider their allocation and grant. Chair Hay agreed and thought the Board should stack the deck as much as possible in the Board's favor. The Board was also not required to rehabilitate the building which did not meet Code. Ms. Brooks was in the process of gathering her support materials and explained it takes a minimum of four weeks to get on the County Commission agenda. Motion Mr. Buchanan moved to go forward with Option 2, to direct the CRA attorney to work with the County Attorney and explain all of the legal constraints, and get clarification on the Waterfront Easement. Depending on the County attorney's opinion on the Easement and the City's legal constraints, continue with the request to the County Commission to demolish the building and the members sign the letter of support. Mr. Karageorge seconded the motion that unanimously passed. Chair Hay agreed to attend the meeting and Vice Chair Orlove, schedule permitting, would attend as well. 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 14, 2012 B. Consideration of Request by Kaufman Lynn Construction, Inc. to Revisit the Approval of Change Orders Under the CMAR Contract Agreement for the Ocean Avenue Projects Mike Simon, Development Director, presented the item On March 17, 2011, the CRA denied, with the option to revisit, change orders associated with the Ocean Avenue Amphitheater and Marina projects due to unforeseen issues. The three change orders for the above two projects totaled $9,709.50 and were for additional drainage piping for the Marina Tower, costs associated with footers to support the beams that hold the awning structure, and costs to redo existing plumbing to the restroom. The changes were initiated either by events in the field or from the architectural firm or owner. In August, change orders were presented for items pertaining to the Ruth Jones Cottage. These were generated due to structural and /or were supervision /general conditions in nature and totaled $52,973.16 The change orders were conditionally approved and would be brought back when the project was completed and reached the Guaranteed Maximum Price. The work was not part of the original scope of work As a result, by approving the change orders, alterations to the original scope of work were made and the contractor issued credits back, totaling $23,766 The change orders totaled $38,916.66. Discussion followed it was important that people want to work with and have confidence in the Board. Motion Mr. Karageorge moved to approve payment to Kaufman Lynn of $37,068.07 $38,916.66. Mr. Buchanan seconded the motion. Steve Kaufman, of Kaufman Lynn, and Rick Brown, Project Manager, were present and explained in response to a question, change orders were common in other projects. The change orders for the amphitheater were for old underground pipes that no one knew were there that had to be relocated. The changes were made as they were working on the project. Change orders also occurred with the Ruth Jones Cottage. There were design changes and additional windows installed that were not included in the original price. Mr. Kaufman explained change orders in the 10% range were typical. Susan Harris, Finance Director, explained the funds were available to pay for the change orders. There was $40,000 that was allocated for the Direct Incentive Finance Agreement (DIFA) account for the Preserve which would not be drawn down. There was also $75,000 in the contingency account. Motion Mr. Karageorge amended his motion to include the use of funds from the Preserve DIFA account for the payment. Mr. Buchanan agreed to the amendment. 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 14, 2012 Chair Hay opened the Public Comment. No one coming forward, the Public Comment was closed. The motion passed unanimously. C. Update on Code Lien Foreclosure Matter on Luchey Property Located at 118 and 128 MLK Blvd. and Consideration of Offering Lender $140,000 to Purchase Both Properties Ms. Brooks explained this item was associated with a City Commission agenda item wherein the City moved to make an offer to the lender to acquire the property and the Community Redevelopment Agency would be the source of funds. The land, if acquired, would become part of the Sara Sims Park as contained in their master plan. Motion Vice Chair Orlove moved to approve. Mr. Karageorge seconded the motion that unanimously passed. There was brief discussion the property was adjacent to the Brandon property and this acquisition would be in addition to demolition and closing costs. Both Attorney Cherof and Tolces were commended for their work on this item. Vote The motion unanimously passed. D. Discussion of Expanding Disclosure of Conflicts for Items Presented to the CRA Board on Agenda Items Mr. Buchanan commented he thought this was already resolved at a prior meeting. The intent of the item was to disclose conflicts, contacts and relations for transparency purposes. It was important all would be cognizant and have confidence in the members, and that the members act with integrity. It was noted the disclosures would pertain to contacts with individuals regarding items on the agenda that would be voted on. There were no objections to operating under this method. E. Discussion of Lease Terms for the Ruth Jones Cottage Ms. Brooks explained this item arose from a discussion regarding the future tenant for this property and staff was requesting direction. The tenant would like to eventually purchase the property. The issue was what would happen if the FEC tracks were used for a commuter rail in the future. There would then be a greater public purpose for the property. 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 14, 2012 Attorney Cherof clarified the draft lease does not have the ability for the Community Redevelopment Agency to exit the relationship in favor of a larger project, redesign project or something like a train station that would be more significant than a cottage. Should that occur, the CRA had no ability to exit the relationship. Currently, there was no option to purchase the building. The RFP only requested proposals to use the property, but the tenant could make an offer. This was discussed with the tenant who was apprehensive she was making a large investment and a year later, she may have to leave. The FEC plan was being formulated and the area could become a potential stop. There could also be stops at Ocean Avenue and Woolbright. The clause could have a broader application and there is a lot of vacant land in that area. Staff did not want to be in a position they were tied to a lease they could not exit. There was consensus to have an exit clause. XII. New Business: A. Consideration of Second Amendment to Development Agreement between CRA and HFHSPBC CLT, Inc. to Update Legal Description Ms. Brooks explained there was an error in the legal description for the Ocean Breeze West project that needed to be corrected. Motion Vice Chair Orlove moved to approve. Mr. Karageorge seconded the motion that unanimously passed. B. Discussion of Directing Staff to Operate Under FSS 288.075 for the Old High School and Town Square Project Ms. Brooks recalled at a prior meeting, she and City staff were directed to work with an individual from the Museum of Natural History. She explained a process was needed so these types of matters could be handled in a consistent matter. In discussions with Claudine McKenna, the County Attorney, she relayed her experience in operating under Florida State Statute, (F.S.S.) 288.075. The County had wanted high -tech jobs for an area. The statute allowed them to operate through a process and it protected the process until it was heard on the Commission level. The process was successfully used by the County. The Boynton Beach Town Square and museum projects would involve the City because there would be CRA incentives used and possibly CRA and City land. Ms. Brooks' 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 14, 2012 concern was working through a process, and at the end, an event would occur which would nullify all their previous work. Attorney Cherof commented he had spoken with Attorney McKenna as well, but they were not dealing with comparable situations. The Statute referred to was not a process. It provided the opportunity for confidentiality. An Attorney General Opinion indicated Community Redevelopment Agencies are not economic development agencies. An amendment to the Statute; however, created greater flexibility in the term Economic Development Agency. The best way for a prospective business to have their information confidential is for the City Commission to designate the CRA and Executive Director as having the power of an Economic Development Agency, as doing so would establish the protection for the documentation and submittal. Attorney Cherof could not guarantee it was defensible, but it would improve its defensibility. Any company coming forward would have to make their own determination of whether the Statute would apply to keep their documents confidential. This would provide a starting point. The first step would be to make a recommendation to the City Commission, in the form of a resolution or amendment to the Community Redevelopment Agency Ordinance, to vest that authority in the Community Redevelopment Agency. This provision would apply to other projects within the Community Redevelopment Agency. Vice Chair Orlove expressed concern it could be used in a negative way. He agreed this situation was unique as the project was lingering for some time. Attorney Cherof explained it could be used on a case -by -case basis and there were limits. If the Board does not want it to be used in the future, the resolution would be fashioned to reflect that. Motion Vice Chair Orlove moved to forward this discussion to the City Commission and request a resolution that would allow the Community Redevelopment Agency to work within the confines of State Statute 288.075. Ms. Ross seconded the motion that unanimously passed. C. Discussion of Status of Mayor's Challenge Event Ms. Biscuiti explained this event was in its third year. Retired Public Information Officer, Wayne Segal, handled the event for the first two years, and when he retired, former Mayor Rodriguez requested Ms. Biscuiti take the lead. One meeting was held. The event planned for this year would cost nearly $7,000. It was thought individuals came to the area and left, so the event was going to be expanded. Former Mayor Rodriguez raised the monies in the past, but they did not have the funds. Accordingly, Ms. Biscuiti sought direction. 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 14, 2012 All of the Board members supported the event, but the issue was there was no funding for it. A suggestion was made to include this event in the Heritage Fest in the future. A suggestion was also made to move the date back to allow time to obtain sponsors. Former sponsors could be approached and informed the event was bigger than anticipated. It was good for the City; it promoted fitness and helped prevent childhood obesity. It was recognized the event was worthy but it was driven by one individual who was no longer serving. Three sponsors expressed they had conflicts and events have to be properly organized. Staff was already overloaded. It was suggested the event be postponed and revisited during budget hearings. Chair Hay also thought the activity name should be changed as in the future it would be associated with an event. It was noted the name had been lengthened to The Mayors Challenge /Family/Walk/Run. Motion Mr. Buchanan moved to postpone the race to next year as part of another event, and take it off the table for this year. Vice Chair Orlove seconded the motion. Chair Hay opened the public comment. Alan Hendricks, 122 SE 4th Avenue, was disappointed the event would not occur. He explained he would like to see the event held just to be consistent. It was important to handle events in a professional and consistent manner. Barbara Ready, 329 SW 13th Avenue, thought a viable alternative was suggested and expressed her disappointment the Board would not continue an event that was worthwhile. She thought the Board should continue the event. Vote The motion passed 4 -1 (Mr. Karageorge dissenting.) XIII. Executive Director's Report A. Project Status Update and HOB Investment Update There were no questions on this report. Mr. Karageorge commented the report was excellent and he was pleased to see progress on the project on Seacrest and permit activity on the Ruth Jones Cottage. He wanted positive coverage that accentuated the positive activities and projects of the Community Redevelopment Agency. Ms. Ross agreed. 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 14, 2012 XIV. Future Agenda Items: A. Renegotiate the Terms /Fees with the Palm Beach County Commission on Ethics (Tabled 11/8/11) XV. Adjournment There being no further business to discuss, the meeting was properly adjourned at 8:13 p.m. Catherine Cherry Recording Secretary 021512 12