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Minutes 09-11-12 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY MEETING HELD ON TUESDAY, SEPTEMBER 11, 2012, AT 6:30 P.M. IN COMMISSION CHAMBER CITY HALL, 100 E. BOYNTON BEACH BLVD, BOYNTON BEACH FLORIDA PRESENT: Woodrow Hay, Chair Vivian Brooks, Executive Director Mack McCray, Vice Chair James Cherof, Board Attorney James "Buck" Buchanan Steve Holzman Mark Karageorge ABSENT: Marlene Ross I. Call to Order Chair Hay called the meeting to order at 6:30 p.m. and welcomed all to the meeting. II. Invocation and Pledge to the Flag Chair Hay gave the invocation followed by the Pledge of Allegiance to the Flag, led by Mr. Buchanan. III. Roll Call The Recording Secretary called the roll. A quorum was present. IV. Legal None V. Agenda Approval: A. Additions, Deletions, Corrections to the Agenda Mr. Karageorge pulled, Items D and E from X from X, Information Only. Chair Hay advised that VIII, Items D, E, and F would be tabled to the October meeting. B. Adoption of Agenda Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL September 11, 2012 Motion Vice Chair McCray moved to approve the agenda as amended. Mr. Holzman seconded the motion that unanimously passed. VI. Informational Items and Disclosures by Board Members and CRA Staff: A. Disclosure of Conflicts, Contacts and Relationships for Items Presented to the CRA Board on Agenda Items Mr. Karageorge announced he joined Kelly Smallridge at her son's eoftball football game and discussed economic development. In addition, Boynton United was starting a program on mentoring which had been endorsed by the Chamber of Commerce. He also announced that Brad Miller would be having his ribbon cutting for his new office in the CRA district, at the old Subway office. The Chamber luncheon would feature the State of the City, the CRA, and the Mayor and Vice President of the Business Development Board (BDB). Chair Hay advised he attended the BDB gala. He heard some good comments on Boynton Beach, especially the green project and Seabourn Cove, which was the top project in the nation. B. Informational Announcements This item was combined with VI. A. VII. Announcements & Awards: A. Sunday in the Park — October 7, 2012 Kathy Buscuiti, Special Events Director, announced a new event, Sunday in the Park. The first one would be Sunday, October 7 from 12:00 p.m. — 3:00 p.m This event involves getting people to walk around the downtown. Many people come to have lunch or brunch on a Sunday and small groups would be set up the first Sunday of the month to get people to walk around. It was estimated the walk would take around 10 -15 minutes. Vivian Brooks, CRA Director advised the City and CRA were nominated by Sustainable Florida for an award for Seabourn Cove. The award would be presented on Thursday evening, September 13. VIII. Consent Agenda: A. Approval of Minutes — CRA Board Meeting August 14, 2012 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL September 11, 2012 B. Approval of Period Ended August 31, 2012 Financial Report C. Monthly Purchases Orders D Approval of Contract between Dee Dee Morrison and the CRA for Art on Ocean Avenue in the Amount of $10,000 E. Approval of Contract between David Langley and the CRA for Art on Ocean Avenue in the Amount of $17,925 F. Approval of Contract between Jo Chamness and the CRA for Art on Ocean Avenue in the Amount of $10,000 IX. Pulled Consent Agenda Items: None. X. Information Only: A. Public Comment Log There were no comments on this item. B Business Newsletter Mr. Karageorge commented it was a great effort by the staff. Ms. Brooks credited Heather English with the idea that keeps citizens informed what was happening in East Boynton Beach, what business were located there, among other useful things. Each newsletter would highlight a different area of the City. C. Memo to Interim City Manager Regarding Maintenance of Boynton Beach Blvd. Extension /Promenade Walkway and July 4th Event Ms. Brooks advised this was an item from the budget meeting and was included for information only. D. Back -up Regarding Citizen of the Year Award Procedure Mr. Karageorge commented that this was very exclusive as far as who could be honored. His intent with the proposed award was to be inclusive of everyone. He supports and commends the MLK Committee, but he would like to honor those volunteers and citizens who had contributed to the CRA and not base it on any other criteria other than the volunteer efforts and contributions to the CRA. 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL September 11, 2012 There was discussion on possibly going to the MLK Committee first and verify that it was for every citizen and not excluding anyone. Ms. Brooks would approach the Committee. E. Fun Night Out — September 6, 2012 Mr. Karageorge advised he would like an update from staff on the success as he remembered it rained very hard that night. He noted some businesses seemed to do well, while others were affected by the weather. Ms. Brooks reported some businesses reported they did great and some reported they did not do very well. She reminded everyone it was not a CRA sponsored event but they just assisted them in their promotion efforts. XI. Public Comments: (Note: comments are limited to 3 minutes in duration) Chair Hay opened public comments. John Porges, Chairman, Greater Boynton Beach Chamber of Commerce, 1880 North Congress Avenue, Suite 214, advised that their 600 business members employ 17,000 people in central and southern Palm Beach County. Great things were happening in the community and they were proud of the energy and productive alliances generating new appreciation and confidence in the future of Boynton Beach. The key driver was the enthusiasm of the CRA. Even with challenging times filled with economic distractions, the CRA had been tirelessly delivering on its mission to create a vibrant downtown core and revitalize neighborhoods within its district. He continued to praise the CRA for the great job it performs and the asset it was to the City. Chair Hay closed public comments. XII. Old Business: A. Consideration of Approval of Resolution No. R12 -04 Adopting the 2012/2013 CRA Budget Susan Harris, Finance Director, stated this item was to approve the final budget by Resolution, which would be ratified at the City Commission meeting on September 18. The only changes from the budget meeting on August 18 are all things that were discussed at the budget meeting. In the project fund, it was decided to consolidate the entire Marina funding so that Phase II of the Marina redevelopment could move forward which included the harbor master building, moving the fuel lines and performing all site work development. Since the CRA would not be funding the Fourth of July, that $75,000 was reallocated within the special events budget for other events that were discussed. The change in the General Fund was to remove the $27,000 from Promenade maintenance to two items. The CRA project maintenance for all CRA 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL September 11, 2012 properties was increased and the insurance quotes had not been in so that budget was increased by $10,000 because of the increase in the insurance line item for public officer's policy and employment practices liability. Mr. Buchanan inquired as to why there was such a large increase in the insurance. Ms. Harris advised it was for the litigation that was currently pending against the CRA by the former Executive Director. As an example this current fiscal year, $9,000 was paid to the officer's liability and employment practices. Next year, the quote was for $25,000. It unfortunately happens when an agency gets involved in litigation. Motion Mr. Karageorge moved to approve Resolution R12 -04. The motion was seconded by Mr. Buchanan and unanimously passed. B. Consideration of Resolution No. R12 -05 Authorizing the CRA Board to Enter into a Rate Lock Agreement with PNC Bank for the Refunding of 2004 and a portion of 2005 Bonds Ms. Harris introduced Mark Raymond, the CRA and City bond attorney and she advised he was available if anyone had any questions. There was an excellent offer proposed from PNC Bank. Ms. Harris explained the current interest rates on the 2004 bond and a portion of the 2005 bond that would be refinanced, with approval, was 4% - 5 %. The PNC deal was 2.56 %. Over the course of the loan, that would save $2.6 million, or over $200,000 a year. The key elements of the deal would be that it would be structured as a bank loan, rather than another bond. It lowers the cost of doing the refinance. The City guarantee would stay in place and the loan would mature in the same amount of time the bonds are currently structured. Approval was requested from the Board to lock in the rate of 2.56% with PNC Bank and also to sign and approve an agreement with the financial advisor's firm so that they could structure the escrow agreement and get the right investments. After that, the City would send out a notice to the taxing authorities to let them know this was happening. Motion Mr. Buchanan moved to approve R12 -05. Vice Chair McCray seconded the motion that unanimously passed. C. Consideration of Approval of Commercial Interior Build -Out Assistance Program Rules and Requirements for FY 12/13 Ms. Brooks advised these were the policy changes recommended at the budget meeting and covers Items C & D. 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL September 11, 2012 Motion Mr. Karageorge moved to approve this item. The motion was seconded by Vice Chair McCray and unanimously approved. D. Consideration of Approval of Commercial Rent Reimbursement Program Rules and Requirements for FY 12/13 Motion Vice Chair McCray moved to approve this item. The motion was seconded by Mr. Karageorge and unanimously approved. E. Consideration of Marina Management Agreement with Waypoint Marine, Inc. Mike Simon, Development Director, advised this item was the approval of the fuel dock and marina management services agreement with Waypoint Marine. Since the purchase of the marina in 2006, and the fuel dock in 2007, Waypoint Marine had been successfully operating them. There was an initial RFP done in 2007, Waypoint was selected as a carryover from the acquisitions. The final term of their second renewal ends on September 30 and based on the RFP, Waypoint was selected to be the contractor at a cost of $158,000 for the initial term of three years and two subsequent opportunities to renew for an additional three years. Motion Mr. Buchanan moved to approve the agreement. The motion was seconded by Vice Chair McCray and unanimously approved. F. Update and Request for Direction on Splashdown Divers, Inc.'s Commercial Interior Build -Out Assistance Program Grant Ms. Brooks advised this was brought before the Board at the request of the Board for updates. These grants were approved in January 2012. Splashdown received an interior facade grant for $15,000, an interior build out for $15,000, and a rent subsidy of $7,200. To date, they have a remaining balance of rent subsidy of $4,200, remaining balance of commercial facade of $14,393, have spent $600 in April and there was not much more they could do. Funds for interior build out, had a balance of approximately $6,952. They have applied to the City for a permit, but amendments to the plan must be done before the permit would be issued. The recommendation would be to extend the interior build out funds by 60 days so they can redo their plans and submit them to the City for approval. 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL September 11, 2012 Motion Mr. Holzman moved to approve the recommendation. The motion was seconded by Vice Chair McCray and unanimously approved. G. Update and Request for Direction on Splashdown Divers, Inc.'s Commercial Facade Grant Ms. Brooks advised this was related to Item F. There is a balance of $14,393 with no activity since April. The recommendation would be to close this out so the money could be used by another business. Motion Mr. Holzman moved to approve the recommendation. The motion was seconded by Mr. Buchanan and unanimously approved. XIII. New Business: A. Approval of New Marina Leases and Terms for Fiscal Year 12/13 Mr Simon advised this was the annual approval of the Marina's dockage agreement which was the agreement between the CRA, as owner and the slip tenants. When the Marina was first purchased in 2006, there were no lease agreements with tenants and the Board chose to select a rate of $14 /1inear foot at that time. At the budget meeting this year, the Board approved setting a rate of $16 /1inear foot for the vessels in each slip. This item was for approval of the leases and setting the rate. Richard Wiltzy, 860 NW 8 Avenue, was the owner and operator of Off the Porch Intracoastal Cruises, located at Boynton Harbor Marina. He was present on behalf of many small business owners in the Marina and wanted to discuss concerns on the direction of the Marina and also proposed rate increases. They received the proposed rate increase along with a market assessment of marinas in the area. He, along with the other owners, felt it was unfair to compare this Marina with others due to the amenities they do not have such as direct access to the ocean, which restricts the type of boats and boaters the area. To compare the rates to Palm Beach or Ft. Lauderdale was not a fair assumption. Other missing amenities were bathrooms, pump out facilities, security, limited parking for patrons or owners and a ship store. While the owners appreciate all the hard work that had been accomplished thus far, there was still a long way to go. The request would be to increase the rent as the property improves and amenities become available. If an increase was necessary, a 7% increase would make more sense than a 15% increase. Ms. Brooks commented that the CRA pays Two Georges $750 per month for the use of the bathroom facilities. She also stated that parking in Marina Towers was for 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL September 11, 2012 everyone. She felt the increase was justified and that many dollars were being put into the effort on a continuous basis. Mr. Holzman commented that after listening to both sides, he could not be in favor of the total amount being requested for the rent increase. He felt the rent should remain the same until the bathrooms were in place and everything promised was complete. At that point, the increase could be revisited. If an increase was necessary, he would agree with a 7% increase rather than the 15% requested. Motion Mr. Karageorge moved to approve the new marina leases and terms for the fiscal year 2012 -2013. Mr. Buchanan seconded the motion with discussion. He advised last year he was the swing vote to hold the increase. He now felt that with the money going in, an increase was substantiated. The motion passed 3 -2 (Vice Chair McCray and Mr. Holzman dissenting). B. Executive Director's Annual Review Motion Mr. Karageorge moved to accept the review. The motion was seconded by Mr. Buchanan and passed unanimously. Motion XIV. Executive Director's Report A. Project Status Update and HOB Investment Update There were no comments on this item. XV. Future Agenda Items: XVI. Adjournment There being no further business to discuss, the meeting was properly adjourned at 7:15 p.m. ri 4 3 Ellie Caruso Recording Secretary 092412 8