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
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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.
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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
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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.
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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.
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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
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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.
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Ellie Caruso
Recording Secretary
092412
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