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Minutes 10-09-12 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING, HELD ON TUESDAY, OCTOBER 9, 2012, AT 6:30 PM IN COMMISSION CHAMBER 100 E. BOYNTON BEACH BLVD. BOYNTON BEACH, FL PRESENT: Woodrow Hay, Chair Vivian Brooks, Executive Director Mack McCray, Vice Chair James Cherof, Board Counsel James "Buck" Buchanan Steven Holzman Mark Karageorge Marlene Ross I. Call to Order Chair Hay called the meeting to order at approximately 6:30 p.m. II. Invocation and Pledge to the Flag Chair Hay gave the invocation and Vice Chair McCray led the Pledge of Allegiance to the Flag. 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 Chair Hay announced XI. New Business, Item D was pulled. Mr. Buchanan had no disclosures or items to add or remove. Mr. Holzman pulled Consent Agenda Items, E, F, and G. Vice Chair McCray disclosed he met with Attorney Bonnie Miskel regarding New Business, Item D that was pulled. For Informational Items, he announced Pastor Lance Chaney's 10th Anniversary would be celebrated the fourth Sunday of October at 10 a.m. 1 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL October 9, 2012 Ms. Ross received an invitation to the 2012 South Florida Veterans Day Dinner at Benvenuto to be held on November 12, 2012, at 6:30 p.m. The speakers were Congressmen Allen West and Ted Deutsch. The American Military Organization was the sponsor, and other veteran's organizations would be involved. Ms. Ross also disclosed a friend of hers was involved in XIII New Business, Item E, which was added to the amended agenda. Mr. Karageorge also disclosed he knew the realtor involved in New Business, Item E, which was on the amended agenda and that he would not receive any personal gain. He pulled Items 8 B and D. For Informational Items, he announced he attended the Annual Blessing of the Animals and reported it was an enjoyable event. Chair Hay announced he also attended the Blessing of the Animals. He thanked staff for participating with the read to the kids at the various elementary schools this week. The book read was "Lady Bug Girl and the Bug Squad ". He thought they would beat out West Palm Beach. B. Adoption of Agenda 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 B. Informational Announcements These items were addressed under Agenda Approval. VII. Announcements & Awards: A. Boynton Beach Haunted Pirate Fest Kathy Biscuiti, Special Events Director, announced the First Annual Haunted Pirate Fest would be held on October 27 and 28th, from 10 a.m. to 5 p.m. on Ocean Avenue. The entire block would be closed and there would be three stages, continuous entertainment, pirate enactments, sword fights, a mermaid tank, a comedy and magic show, children's treasure hunts and events for children such as a bounce house, a pirate ship slide and a rock climbing wall. Over 70 pirates would be on site the entire weekend. Continuous music would be on the amphitheater stage and there would be a 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL October 9, 2012 60 -foot dining tent with food and beverages. It was hoped each year, this event would grow. C. Sunday in the Park This past Sunday was the first Sunday in the Park; however; due to the rain, the event was cancelled. The next event was November 7, from 12 noon to 3 p.m. with Paul Bee. Mr. Bee plays several instruments. He records himself on some instruments and plays others resulting in many types of music. Ms. Biscuiti pointed out the park was located on the corner of 4th and Ocean. Vivian Brooks, Executive Director, announced the Community Redevelopment Agency won the Florida Sustainability Award with the City for the Seabourn Cove project in the Government category. This was the largest green project of its kind in the U.S. The City /CRA partnership helped offset the cost of the green elements and for that effort, received the award. Chair Hay acknowledged the award was a nice award, which was in the Commissioner's Office and he noted Boynton Beach beat out big cities such as Tallahassee and Orlando. He also recognized the developer Rick Lococo for a great job. VIII. Consent Agenda: A. Approval of Minutes — CRA Budget Meeting, August 22, 2012 B. Approval of Minutes — CRA Board Meeting, September 11, 2012 This item was pulled. C. Approval of Period Ended September 30, 2012 Financial Report D. Monthly Purchase Orders This item was pulled. E. Approval of Contract between Dee Dee Morrison and the CRA for Art on Ocean Avenue in the Amount of $10,000 — Tabled 9/11/12 This item was pulled. F. Approval of Contract between David Langley and the CRA for Art on Ocean Avenue in the Amount of $17,925 — Tabled 9/11/12 This item was pulled. 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL October 9, 2012 G. Approval of Contract between Jo Chamness and the CRA for Art on Ocean Avenue in the Amount of $10,000 — Tabled 9/11/12 This item was pulled. IX. Pulled Consent Agenda Items: B. Approval of Minutes — CRA Board Meeting, September 11, 2012 Mr. Karageorge noted a change on page 2, Item VI. A of the minutes that he attended Ms. Smallridge's son's football game, not softball game. Motion Mr. Karageorge moved to approve the minutes. Vice Chair McCray seconded the motion that unanimously passed. D. Monthly Purchase Orders Mr. Karageorge inquired if the purchase orders were for items to be acquired in October and November. Along that line, he had a question on the Swan Development Proforma Analysis. Ms. Brooks explained staff was directed to have them look at the numbers. They had a purchase order open when that would occur. The Kimley -Horn purchase order was for their services for work on Boynton Beach Boulevard. Motion Mr. Karageorge moved to approve. Vice Chair McCray seconded the motion that unanimously passed. E. Approval of Contract between Dee Dee Morrison and the CRA for Art on Ocean Avenue in the Amount of $10,000 — Tabled 9/11/12 F. Approval of Contract between David Langley and the CRA for Art on Ocean Avenue in the Amount of $17,925 — Tabled 9/11/12 G. Approval of Contract between Jo Chamness and the CRA for Art on Ocean Avenue in the Amount of $10,000 — Tabled 9/11/12 Motion Vice Chair McCray moved to remove from the table. Mr. Karageorge seconded the motion that unanimously passed. 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL October 9, 2012 There were no objections to hearing Items E, F, and G together and Mr. Holzman inquired if the artists were from Boynton Beach, and if not, why. Debby Coles - Dobay, Public Art Administrator, explained the Call to Artist procedure. The Call to Artists for this project was posted in numerous places and through numerous media. About 30 responses were received, many from local artists. A selection committee composed of Community Redevelopment Agency staff, Arts Commission Board members, a public artist and other stakeholders in the project, such as Glenda Hall, narrowed the submissions down based on the artist's qualifications and how the pieces would look collectively. Preference is given to artists residing in Boynton Beach; however, the artists from the area did not have the skill sets and could not match the criteria needed. An overview is given so artists were made aware of the process. Barbara Ready, Arts Commission Chair, explained the criterion the art was selected on was contingent on other factors aside from where the artist lived, and that there was a difference between public artists and other artists. Ms. Coles - Dobay clarified public artists have training in different materials that last outdoors. They are familiar with the structural components each piece needs to have to ensure its durability and public safety. The subject pieces were unusual as they would be displayed as art hanging from the trees. The pieces were lightweight, illuminated, and not all artists could deal with these types of materials and with the lighting needed for them. The Arts Commission gives opportunities to all kinds of artists and all could apply, but with this project, the artists had to demonstrate they were familiar with these aspects and prove they had done so in the past. These individuals could install their own artwork and had the training to do so. Mr. Holzman suggested giving a greater preference to local artists in the future. He noted they keep hearing about a group of local artists in Boynton Beach. When opportunities arise, much effort should be given to ensure they are supported. Further discussion ensued about the electrical components to the artwork and Mr. Karageorge inquired if an electrician would be used. Ms. Brooks responded they were waiting for prices, and they would try to use a local electrician as long as it was within the budget. The figures provided were not inclusive of the electric and many electricians cannot do this type of work. Mr. Karageorge recalled this project was delayed due to issues with the electricity. The project was a tricky project, but he was concerned the electrical cost may come in at a level that would make it uncomfortable when considering the total cost. He preferred to have a better grasp of the cost before moving forward with the item. Ms. Brooks explained they received enough information to know the total cost would be within budget. Both Ms. Brooks and Ms. Harris were comfortable with the numbers. Vice 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL October 9, 2012 Chair McCray preferred to see the cost beforehand and inquired if the item had to be passed at this meeting. Ms. Brooks explained the artists have to get started making the item. The Community Redevelopment Agency had a budget for the item and with the electrical figures they received to -date, they were within budget. Mike Simon, Development Director, commented the electric was negotiated down from $26,000 to $13,000. Another bid had the cost around $11,000 that did not include the individual controllers. He expressed, with the electric, they would be close to the budget. Vice Chair McCray recommended that information be included in the future. Ms. Brooks clarified the action was to approve the artists. They would go through the procurement process for an electrician. The total project budget was $50,000. Staff tabled the item last month because the cost of the art was over $50,000 so they negotiated with the artists to reduce the price. That was why the item returned to the Board. Mr. Simon explained there were components of the project, such as brackets, installation, the lift to hang the art, and the electrician. The only advantage to approving the contracts for the artists was so they could commence work. It was up to the Board whether they wanted to defer the item to next month. Vice Chair McCray agreed staff could provide the information to him after the meeting. The electrical costs would come back to the Board. If it exceeded the budget, staff would advise where the funds would come from. Vice Chair McCray expressed he was uncomfortable moving forward with it. Motion Mr. Holzman moved to approve Items E, F, and G, Mr. Buchanan seconded the motion that passed 5 -1 (Vice Chair McCray dissenting). Mr. Buchanan thanked Ms. Coles -Dobay for bringing the Kinetic Art Symposium to the City. He commented he was already enjoying the art that was installed. X. Information Only: A. Public Comment Log There were no comments on this item. B. Commercial Familiarization Tour Information Ms. Ross inquired if most of the information for the tour was ready to go. Ms. Brooks responded the tour was in January. They had a list of commercial brokers, a Save the Date card designed, the speakers and presenters aligned, and the format. The tour route was scheduled and another planning meeting was scheduled for this week. She anticipated meeting every few weeks up until the event as there was a lot of information 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL October 9, 2012 to be presented in the half -day event. Staff sought to showcase what was new in Boynton, what was coming and good in Boynton, and why prospects should be sent to the City. Most of it would highlight incentives and how one could layer the incentives between the City, County, and State. They would also discuss development opportunities within the City and unincorporated area by Canyon and they would take a tour. Mr. Karageorge thought all parties did a great job putting the program together and they were receiving many inquiries. The tour educated brokers on all the incentives that other markets did not have. It allowed Boynton Beach to shine and the tour could yield major dividends. Ms. Brooks noted the last Familiarization Tour provided great coverage for Boynton Beach. Sweet Waters was featured on the cover of the Sun - Sentinel Weekend and the last Familiarization Tour paid off. Many individuals do not think of Boynton Beach. By the time the participants enjoyed two meals and saw what was offered, they would have a better feel for the City. C. Update on Seamist Project at Marina There were no comments on this item. D. Media Outreach and Editorial Coverage Vice Chair McCray felt the information was not self - explanatory and recommended including the year with the information. Ms. Walsh explained last month she was out and could not attend the meeting so they had to table the media coverage presentation. She combined the two months for this meeting, which was why there was a press release for Sunday in the Park from last month. Typically, the information would be presented month by month. E. E -mail from County Administrator Robert Weisman to Lynn Simmons of Splashdown Vice Chair McCray had read the email and upon his inquiry was told there was nothing else the Community Redevelopment Agency needed to do. XI. Public Comments: (Note: comments are limited to 3 minutes in duration) Lynn Simmons, Splashdown Divers, 640 E. Ocean Avenue, explained last month, the Board discussed the grant monies approved for Splashdown and the Board reduced the funding by about $15,000. She requested the Board reconsider that action. Ms. Simmons explained she moved everything she had over to the location. The unit was inspected and approved. She obtained her license and was fine. In March, she received a violation notice from the City as she had installed a compressor without a permit. She 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL October 9, 2012 explained once one pulls a permit, all of the property had to be brought to Code, which included a handicapped restroom. The restroom increased the cost of the improvements to over $30,000. When Ms. Simmons first applied for grant funding, there was a little wiggle room where the funds could be spent. Ms. Simmons intended to use the back door area of the building for the entrance to her business with fancy signage and a better entranceway. There would have been enough money, had they received the funds originally promised, to do both. With $6,000 left, Ms. Simmons commented she could not satisfy the Code's requirements. Ms. Simmons contended the consequences were not only to her. Her landlord was happy to have the unit occupied as it was unoccupied for over two years. Another business that uses her services to fill air tanks would no longer be able to do so. She requested, for wisdom and justice, that the Board think about what they did and how it would affect other people. She requested the Board reconsider and reinstitute all of the grant monies the Board had made available to Splashdown Divers for the move. Chair Hay closed Public Comments. XII. Old Business: A. Update on Boynton Beach Blvd. Improvement Project Ms. Brooks explained Adam Kerr, of Kimley Horn, was present to provide an update. Staff sent information to FDOT and Mr. Kerr would apprise what has transpired since then. Adam Kerr, Kimley Horn and Associates, 5732 57th Way, West Palm Beach, explained they submitted a study to the Florida Department of Transportation regarding the impact of the beautification and the potential lane reduction. In general, the State was very supportive. They met with the department heads from the FDOT and minor technical comments were received. The comments were addressed and resubmitted to the State. The next step was reviewing a site plan to understand what the road may look like, in terms of what was permissible to the Florida Department of Transportation. Vice Chair McCray inquired if there was a time certain the Board would receive something in writing when the project would start. Mr. Kerr anticipated it would be about another two months for FDOT to respond. At that point, they would start the conceptual design which would take about six to nine months. A public meeting would then be held, when they had a plan that was acceptable to the FDOT. From there, they would go to the design phase which was construction documents. 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL October 9, 2012 B. Consideration of Resolution No. R12-07— Bond Refunding Series 2004 and Series 2005A and Authorizing the Issuance of Series 2012 in Principal Amount of $16,185,000 Motion Mr. Holzman moved to approve. Vice Chair McCray seconded the motion that unanimously passed. Susan Harris, Finance Director, thanked Jay Glover, the City and Community Redevelopment Agency's financial advisor for going to the market and obtaining a great deal. She also thanked Mark Raymond, the City and Community Redevelopment Agency bond counsel who was instrumental in moving through this process smoothly and efficiently. As a result of their efforts, a 2.56% reduction was achieved, saving $2.6 million over the life of the loan and over $200,000 a year in interest payments. Vice Chair McCray also recognized the City's Finance Director for his assistance. C. Update on the Ocean Breeze West Project Vice Chair McCray disclosed he knew Mr. Campbell, but not personally. Mike Campbell, Habitat for Humanity, 181 SE 5th Avenue, Delray Beach, explained there were 10 lots drawn down for the project, with three lots currently in construction. One lot was in permitting. Habitat for Humanity had some difficulty from March to August drawing down seven lots and those issues were resolved. They were trying to ensure there would be no additional closing costs to transfer lots from the land trust to the CDC. They incurred about $120,000 due to FPL, the cable, and irrigation systems that would be divided amongst the property owners resulting in a cost of about $5,700 to each. He explained both Mike Williams and Keturah Joseph were present to give an update on the construction of the homes. In response to an inquiry, Mr. Campbell explained if a two -story home would be constructed, it would be constructed on one of the four center lots. Keturah Joseph, Boynton Beach Faith Based Community Development Corporation, 2191 N. Seacrest Boulevard, explained it took about five months to transfer the lots from the Community Redevelopment Agency through Habitat to Humanity to the CDC. It finally took place in August and was why they had not started construction. There were about seven approved buyers. Some buyers became discouraged because the process lagged and two of the buyers purchased homes on the open market. Two others purchased existing Community Development Corporation, Neighborhood Stabilization Program homes and three homes were completely rehabbed and were just closed. The first three lots were ready for permitting and they were waiting on the 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL October 9, 2012 surveys which would be submitted by next week. Ms. Joseph hoped to start construction on the three units soon. The construction timeline was three to four months, and it was hoped they would close on the three lots around the end of March. Ms. Joseph explained the CDC decided not to build more than three homes at a time for various reasons, one of which was to hold the absorption rate. If someone dropped out, they would not be left with a bunch of houses. When they neared completion of the three homes, they would start on the next three. Three approved buyers were still interested in purchasing CDC units. One approved buyer just dropped out because she was working part time, but the CDC would put her into an NSP home. They had two approved buyers they hoped would hold until they were ready to start the next three units. She reported they were moving along, the builder was in place, all was ready and they were moving through the permitting process. Once the permit was received, they would start construction. Mr. Holzman thought there was a discrepancy in the number of approved buyers. Ms. Joseph explained they have a pipeline of buyers and she offered to email the members the names of the approved buyers. Ms. Brooks explained ten homes had to be under construction by June and Ms. Joseph anticipated they would meet that deadline. It was noted the developers would be making quarterly reports to the Board. Mr. Karageorge encouraged individuals to help with the project. He recommended contacting Diane Barbosa of Habitat for Humanity. Habitat was building Thursdays through Saturdays and it was a great experience. Chair Hay agreed with Mr. Karageorge and issued a challenge to the Board members to participate in the project. It would be a good image builder. Mike Williams, Habitat for Humanity, South Palm Beach County, 181 SE 5th Avenue, Delray Beach, gave an update on the Ocean Breeze West project. Three homes were under construction. One was in permitting. The three under construction were not complete due to issues with FPL; however, they committed to having the issue resolved by the end of October. He hoped to have dedications for at least two of the homes by the end of November. They were submitting permits for an additional five lots so at the beginning of the year, they could prepare for the Collegiate Challenge, and blitz builds in the beginning of May. Both of those activities should expedite the completion of the project and all 11 homes should be completed by the end of June 2013. Mr. Karageorge thanked Mr. Williams for his efforts as they were above and beyond. D. Reconsideration of Rent Increase for Slip Tenants Mr. Buchanan explained he requested this item be revisited. He received a letter from fishing boat owners at the Marina, a copy of which was enclosed in the meeting materials. It was his thought that the increase previously approved would be passed on 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL October 9, 2012 to customers. He requested the increase be postponed to January when they would be in season. Motion Mr. Buchanan moved to maintain the increase but not start it until January. Ms. Ross seconded the motion that unanimously passed. XIII. New Business: A. Consideration of Resolution No. 12 -06 - Budget Amendment No. 1 — FY 2012 -2013 Ms. Harris explained in September when the Community Redevelopment Agency budget was approved, the City had not yet finalized the millage rate for the new fiscal year. When they did, the millage was increased which resulted in an extra $185,000 in revenue for the Community Redevelopment Agency. In addition to that, there were some commercial fagade grants that did not utilize all of the funds in the last fiscal year. The unused amount totaled $28,000. All together, there was $213,840 extra. From that amount, they needed to increase DIFA payments to developers by $28,000. Staff recommended another $100,000 be put into the economic development grant program which was funded at $185,000. For the new fiscal year, it would bring the total to $285,000, which was close to the $310,000 which was almost entirely expended during the last fiscal year. Staff also recommended $85,840 be allocated for parking / redevelopment planning in the Community Redevelopment Agency District. Mr. Holzman suggested taking the $85,000 for parking and increasing the amount for the economic development program to the original amount of $310,000. The difference was $25,000. Motion Mr. Holzman moved to approve, with the shifting of the $25,000 from parking to economic development. Mr. Karageorge seconded the motion. Ms. Ross requested Ms. Brooks' input regarding the transfer from parking to economic development. Ms. Brooks explained next year there would be additional funds from the Marina, and staff would come back with the additional $200,000 they saved. They could fund parking at that time as it would be needed. The motion unanimously passed. B. Consideration of Improvements to Veteran's Park at Ocean Avenue /4 Street 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL October 9, 2012 Motion Mr. Holzman moved to approve. Vice Chair McCray seconded the motion that unanimously passed. C. Florida Redevelopment Association Annual Conference Board Travel Ms. Brooks explained Mr. Buchanan and Chair Hay were interested in attending the conference and it was the policy of the Agency that the Board must approve the travel. She pointed out the cost for each member was approximately $982. Motion Vice Chair McCray moved to approve. Mr. Holzman seconded the motion. This year, the Conference would be held in Daytona. Mr. Karageorge had attended in the past and found it to be beneficial. He urged all to attend. Additionally, he announced this year the Community Redevelopment Agency was nominated for awards in four or five categories. The Community Redevelopment Agency was already under consideration for an award next year due to missing a deadline this year. He explained it was obvious how good staff was when one attended the Conference. The Agency had been recognized last year for best practices for various projects and he commended all of the staff. Chair Hay agreed and noted Ms. Brooks was a speaker at the Conference and would discuss redevelopment incentives on day two of the Conference. There was a vote on the motion that unanimously passed. D. Request by The Related Group to Set Aside Section 8.1.6 of The Promenade DIFA for a Certain Time Period (Back -up to follow at a later date) This item was pulled at the request of the applicant. E. Consideration of Request from HAP Grant Recipients, Teasha & Kelly Thomas, to Accept Terms of Short Sale Negotiation Mr. Simon explained this item was added at the request of the Community Redevelopment Agency Attorney and the recipient of Housing Assistance Program (HAP) funds, Teasha and Kelly Thomas, who were present with their realtor and attorney. Mr. Simon reviewed in July of 2008, the Board approved Ms. Thomas for the HAP grant and she closed on her unit. Close to $2,000,000 was spent under the program with the typical award being $50,000. 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL O ctober 9, 2012 In December 2011, the Board set a foreclosure policy to pursue the indebtedness to the Community Redevelopment Agency subsequent to the foreclosure proceedings. This was done at least three times and the Board had not given any waivers. Recently, staff was approached by Ms. Thomas who was negotiating a short sale. In this instance, the issue was not yet a foreclosure, so no direction was given. He noted if it was the Board's desire, they could hear from the applicant. Alex Bandien, 1851 Via Granada, Boynton Beach, the listing agent was also representing the buyer, explained he marketed the property for about a month. The value had dropped dramatically. When they had the property under contract in 2009, its value was $211,000. The property was now worth $73,000 and it was under contract for $76,333. The attorney, Angelina Namia, was present who was negotiating with the first lien holder, Bank of America. The mortgage was an FHA mortgage and they were willing to waive deficiencies. They received a verbal preapproval of a payoff for $63,000 and the original loan amount was $161,000. Mr. Bandien explained the proposal was to offer the typical average for second lien holders, which was about 10% of the total mortgage to the Board. They appropriated funds through a draft pre -HUD settlement statement in the amount of about $5,000. Mr. Bandien explained the homeowner had an extreme hardship and no longer had the ability to pay for the property. Angelina Namia, Esq. 2010 Belmont Place, Boynton Beach, the attorney through Mr. Bandien's office, having the authorization and disclosure of the homeowner pointed out the mortgagee was Bank of America. Normally, there were two different banks involved and if the short sale was not approved, all parties lose. The conditional approval granted by Bank of America was conditioned upon meeting FHA Guidelines for the short sale as well as submitting paperwork. She clarified the paperwork was submitted in May through July. It was now October, and due to delays would have to be resubmitted. Although the Board has pursued deficiencies on foreclosures, she pointed out if the homeowner had nothing to come after; good money was being spent in vain. Ms. Thomas was a local teacher and she and her sister love the home, but circumstances warranted the sale. If the Board did not approve the request, the only option was foreclosure. Ms. Namia submitted documentation and explained they would be happy to address any questions the Board may have. The Board had not recaptured any funds from foreclosures involving HAP recipients. Mr. Karageorge thought this was a win -win situation as previously, recipients went into foreclosure and then came to the Board; however, he did not want to set a precedent. Attorney Cherof explained the Board had not seen any documentation from the Bank. Attorney Namia explained this would be the first month the property would be in default and the first time the homeowner could not make the mortgage payment. A demand letter was not yet received. The homeowner initiated the short sale process. Because 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL October 9, 2012 the loan was an FHA loan, there were steps to follow which they qualified for up until this point. Mr. Holzman expressed the pitch was if the Board did not approve the request, it would go into foreclosure. He noted it was only one month and foreclosures take several months. He thought it would be a mistake for this Board to rush to accept 10% of the grant and that the Board was not the Bank. The funds were taxpayer dollars and the Board must be extremely vigilant about what the Board does and does not do with the dollars. He thought it was premature for the Board to accept 10 %. Further discussion followed the owner was still employed and had only missed one month of mortgage payment. There was no demand letter from the Bank. Mr. Karageorge related to individuals in much worse hardship situations and noted this was not to that point and the short sale was rushed. There could be another 10 individuals from the Preserve coming forward with a similar situation and he did not want an avalanche of requests. Attorney Namia explained they expedited the matter because the client came to the realtor. Once a foreclosure starts, the Board would no longer have the opportunity to recapture any funds. The buyer was a cash buyer who could walk and they had to start the process early. Because the mortgage was a FHA loan, the buyer qualified. The owner tried a modification, getting a second job while going to graduate school, and helped her sister with a minor child, but the situation would get worse and then the opportunity would be lost. She asked the Board to consider all of the documentation submitted and any additional documents the Board requests. Mr. Buchanan noted there were three foreclosures and inquired if any funds were recaptured. Attorney Cherof offered to check and advise the Board of their status as he believed two cases were dismissed. Teasha Thomas, 1763 NE 6th Street, explained the way the City wrote the grant, she was not able to refinance unless done so at a higher rate which was cost prohibitive. She was unable to rent the unit because of the grant agreement. This was her only option. She explained it was a struggle to maintain the mortgage. Mr. Holzman acknowledged Ms. Thomas's situation and thought any decision made would set a precedent going forward. He suggested accepting 50% of the $50,000 that would close, bringing $25,000 back to the Board. This would allow her to close while safeguarding citizen dollars that were expended in her situation and others. Motion Mr. Holzman moved as stated. The motion died for lack of a second. 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL October 9, 2012 Attorney Namia acknowledged the amount suggested by Mr. Holzman would be generous under typical circumstances, but in this instance with the value of the home, the cash buyer's offer and what the bank, who was waiving over $100,000 in deficiencies offered, it would not possible. Attorney Cherof suggested the Board table the matter and gather more facts to determine if it is a win or lose situation. Motion Mr. Holzman so moved. Vice Chair McCray seconded the motion. Mr. Karageorge indicated a short sale could still occur once the lis pendens was filed and with the tabling. Since the lis pendens had not yet been filed, there was still time. He agreed tabling the request was appropriate to allow the Board time to review the matter more closely. The motion unanimously passed. IV. Executive Director's Report A. Project Status Update There were no comments on this item V. Future Agenda Items There were no comments on this item. VI. Adjournment There being no further business to discussed, the meeting was properly adjourned at 7:57 p.m. Catherine Cherry Recording Secretary 109012 15