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Minutes 05-14-13 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING, HELD ON TUESDAY, MAY 14, 2013, AT 6:30 PM IN COMMISSION CHAMBERS 100 E. BOYNTON BEACH BLVD. BOYNTON BEACH, FL PRESENT: Jerry Taylor, Chair Vivian Brooks, Executive Director Woodrow Hay, Vice Chair James Cherof, Board Counsel James "Buck" Buchanan Joe Casello (Arrived 6:56 p.m.) Michael Fitzpatrick Mark Karageorge David Merker 1. Call to Order Chair Taylor called the meeting to order at 6:31 p.m. II. Invocation and Pledge to the Flag Vice Chair Hay gave the invocation and 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 Vivian Brooks, Executive Director, pulled Item VIII.D. from the Consent Agenda. Mr. Buchanan wanted to add to the next agenda a Galaxy Wi -Fi Project, covering the Heart of Boynton down to Ocean Avenue, as a Future Agenda Item. He explained Galaxy Elementary School was providing students with iPads and computers that can be used in that area. Mr. Buchanan believed the project fit the Community Redevelopment Agency's (CRA) mission to alleviate slum and blight through education, and it provides economic opportunities by helping businesses in that area. He thought it was a worthwhile project, and he wanted to partner with the City and School Board. He Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL May 14, 2013 pointed out there is a short timeframe to act on it. He recognized it was not in the budget, but by partnering with the City, the program could be implemented. Mr. Karageorge pulled Item VIII.B of the Consent Agenda. B. Adoption of Agenda Motion Vice Chair Hay moved to approve the agenda as amended. Mr. Karageorge 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 There were no conflicts or disclosures made. B. Informational Announcements Mr. Karageorge welcomed Scott Klein, the new Economic Development Director. He complimented the Related Group for selling 80 units at Costa Cosa, which Waterway Investments was unable to do. He commented the purchases were made by individuals from South America, Brazil, Argentina, and individuals from the New York/ New Jersey metropolitan area. The purchases totaled about $25 million, which will help the tax base and local businesses. He congratulated Kelly Smallridge of the Business Development Board. Ms. Smallridge was recently recognized by the Governor with the Ambassador Award, for recruiting jobs to the State and the County. Mr. Karageorge announced the Red Hot Blues Cruise was a success. He thanked Mr. Buchanan and the volunteers, especially Mr. Casello and his wife, who were present with their daughter. Mr. Casello commented he enjoyed the day. It was a great event and one could see it would grow every year. He commented the Move On Boynton Beach event was great. Mr. Karageorge encouraged anyone who had not purchased tickets for the Taste Of Boynton event to do so. The cost was $40, and tickets could be purchased through the Chamber of Commerce. The event will be held at Indian Springs Country Club and about 20 restaurants, plus the Wine Cellar would be present. It is always a fun event and all were encouraged to attend. 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL May 14, 2013 Vice Chair Hay attended the Arbor Day event and planted trees with students from St. Mark School. A few days later, he attended the Birthday Extravaganza at Mangrove Park and learned a great deal. He attended the Chili Cook -Off and commented there were 19 different varieties of chili. He congratulated the Fire Department for a great activity and charitable event. Mr. Merker advised he is in the health insurance industry and participating in the Move On walk brings people together. His participation, as a senior citizen, demonstrated that all have the opportunity to stay healthy, happy and wise. Mr. Casello attended the Chili Cook -Off and ran into a former co- worker from a Massachusetts Fire Department. He thought volunteerism was great and a good way to promote the City and get the public involved. Mr. Buchanan announced he participated in the Red Hot Blues Cruise. Chair Taylor reminded all that the Police Awards Ceremony would be held on Wednesday, May 15, 2013, at 10 a.m. at Intracoastal Park. VII. Announcements & Awards: A. Ocean Ave. Concert — 5/17/13 Kathy Biscuiti, Special Events Director, announced this Friday was the last Ocean Avenue concert of the season. It is held at the amphitheater, and would feature The People Upstairs. This band has a following and should draw a nice crowd. The concert would be held from 7 to 9 p.m., and attendees should bring chairs and blankets. The Little House Restaurant would provide food, beer and wine, and the food truck would be onsite. VIII. Consent Agenda: A. Approval of Minutes — CRA Board Meeting, April 9, 2013 B. Approval of Period Ended April 30, 2013 Financial Report This item was pulled by Mr. Karageorge. C. Monthly Purchase Orders D. Approval of Commercial Fagade Grant to Global Project Boynton Beach SW, LLC (Sherwin Williams) E. Approval of Rent Reimbursement Grant to FAH Associates, LLC d /b /a Maui Wowi Hawaiian 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL May 1, 2013 Motion Vice Chair Hay moved to approve Consent Agenda Items A, C and E. Mr. Fitzpatrick seconded the motion that unanimously passed. Mr. Buchanan noted on page two of the minutes, a sentence in the last paragraph should read, "Blues will be presented by top bands clubs such as BB Kings, ..." IX. Pulled Consent Agenda Items: B. Approval of Period Ended April 30, 2013 Financial Report Mr. Karageorge requested an update on the insurance costs and legal fees paid so far on the Lisa Bright case. Susan Harris, Finance Director, did not know how much the insurance company was paying their attorney to represent the CRA. The CRA paid the $5,000 deductible directly to the insurance firm. Attorney Cherof's firm was paid $21,000 to -date. The type of insurance, called Public Officers and Employment Practices Liability, increased from $9,000 to $25,000 in this fiscal year. It was an increase of 300 %. Attorney Cherof explained the case is scheduled for a mediation conference in the near future. They were working out the details and the parties agreed to a mediator. Motion Mr. Karageorge moved to approve. Vice Chair Hay seconded the motion that unanimously passed. D. Approval of Commercial Fagade Grant to Global Project Boynton Beach SW, LLC (Sherwin Williams) Ms. Brooks pulled this item because she could not confirm the liens were paid; however, Attorney Cherof confirmed they were. The property went through a bankruptcy proceeding and he was able to obtain the court order. It was further confirmed by the City's Bankruptcy Attorney just before the meeting. The property was the old Ralph and Rosie property. Motion Vice Chair Hay moved to approve. Mr. Karageorge seconded the motion. An inquiry was made whether the applicant was present. Mr. Buchanan commented the CRA has design guidelines and he did not think the drawings met them. He did not want 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL May 14, 2013 to award funds to someone who would not follow them. The applicant; however, was not at the meeting to respond. Ms. Brooks explained the design guidelines were geared more to new buildings. In this instance, the applicant was removing the old mansard roof, leaving the original square building. It did not meet the design guidelines for a newly constructed building, but it was okay to update the building. The applicant was retrofitting the building and cleaning it up. Ms. Brooks commented there will be projects that do not fit the guidelines 100 %, but in her opinion, it was still an improvement. The applicant was a good quality business that paid its liens and improved the property. She pointed out this would be for an interim use. The Agency would not improve all five miles of Federal Highway for many years and there will be similar projects that are rehabbed. She pointed out Sunshine Square was to be a mixed -use project, but because of the economy, that did not occur. What was done did not necessarily meet the design guidelines, but it is an interim redevelopment of that site, until at some point, it would be a mixed -use project. She clarified redevelopment projects usually occur in phases. She thought the Board needed to leave room for small businesses to be able to improve their establishments. Mr. Buchanan agreed, but his point was the building did not have to be made to look so industrial. There could be cosmetic changes to make it more compatible with the guidelines. The change would be reviewed by staff as a minor site plan modification; however, City staff is not familiar with the Community Redevelopment Agency's requirements. After brief discussion, the members decided to table the item and ask the applicant to work with staff on the building design. Motion Mr. Buchanan so moved. Mr. Merker seconded the motion that unanimously passed. X. Information Only: A. Public Comment Log B. Media Outreach and Editorial Coverage C. Special Events Recap D. FRA Regional Meeting — CRA Board Basics Training 5/18/13 Ms. Brooks reminded all the training was this Saturday at the DoubleTree Hotel on PGA Boulevard. All the members were registered and were eligible for mileage reimbursement. 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL May 14, 2013 I. Public Comments: (Note: comments are limited to 3 minutes in duration.) Chair Taylor opened the Public Comments. Mack McCray, 806 NW 4th Street, former Community Redevelopment Agency Board member, thanked the Board for keeping Boynton Beach on track and for all the current events. There being no one else coming forward, Public Comments was closed. II. Public Hearing: None. III. Old Business: A. Consideration of Renewing Lease with Jesus House of Worship (Tabled April 9, 2013) Motion Mr. Karageorge moved to remove. Vice Chair Hay seconded the motion that unanimously passed. Vice Chair Hay thanked the Board for giving him the opportunity to discuss the lease with clergy from Jesus House of Worship. He and Mike Simon, CRA Development Director, sat down with Pastor Evans and others at the property and discussed the issue. Together, they discussed the CRA Board's position with regard to a future lease and the meeting ended on a positive note and with prayer. Since Vice Chair Hay fellowships nearby, he thought it was necessary to end the lease on a positive note, and he thanked the Board for allowing him to establish a good neighbor exit. Motion Mr. Karageorge moved to terminate the lease with Jesus House of Worship for the property located at 1000 N. Seacrest Boulevard and allow five months to vacate the premises. Vice Chair Hay seconded the motion. Chair Taylor appreciated Mr. Simon's and Vice Chair Hay's efforts. He agreed the Board was extremely gracious to allow them to stay for five months. He would not have been as lenient, as the Board paid the Church $300,000 and then it was leased to them for $10 per year. It was thought they rented it out to another house of worship for probably more than $10 a year. 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL May 14, 2013 Vice Chair Hay was unsure whether Pastor Evans was paying Pastor Ed and Reverend Jeune any money as they relocated to 10th Avenue. Because of that transition, Reverend Jeune was allowed to use the building at no cost, so there was no exchange of funds. They were originally from Jesus House of Worship and started ministries there. Additionally, the insurance shown to staff was still listed under Jesus House of Worship. Vote The motion unanimously passed. B. Consideration of Responses to RFP for 211 E. Ocean Ms. Brooks explained the RFP for 211 E. Ocean Boulevard, known as the Magnuson House, was issued on January 8th. Staff received two proposals on April 22nd: one from Orange Studios and the other from Telluride Bar and Grill. The first proposal suggested a live /work arrangement for the property constructed in three phases. In the first phase, the house would be rehabbed. The second phase would be a second building providing live /work space behind the property itself, and in phase three, there would be more live /work units on the property west of 211, which is vacant. In the first phase, Orange Studio proposed to have an architectural office and rent the upstairs. The applicant was offering $45,000 for the property. The second proposal was for a barbeque, Tex Mex bar and grill. They proposed a 150 seat restaurant, which was the concept staff had sketched out with REG Architects. They proposed to pay $1,700 per month on a 10 -year lease with four, 10 -year renewals and have an option to purchase at the current appraised value within the first 10 years. Both proposers would use the $185,000 the CRA was offering to incentivise the project. Ms. Brooks advised both proposals complied with the general response criteria of the RFP, but there was some key financial information lacking. Staff requested such via email from both parties, and their responses were included in the meeting backup. Blaise McGinely, the architect from Orange Studio was present to make a presentation; however, staff was not recommending approval of his proposal due to it not being able to generate foot traffic on Ocean Avenue. Right now, Mr. McGinely is a one -man operation, but he did, later in the day, indicate that there would be eight employees. Ms. Brooks recalled not too long ago, the Board rejected a hi -tech company with eight employees for that site. Staff wanted a more active use. There was no market study for the live /work proposal, but that type of arrangement has not worked well in Florida at all. West Palm Beach has many live /work units downtown that are vacant and the concept has not proven to be successful. Staff was not convinced it was something to pursue. 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL May 14, 2013 The second proposal lacked proof of financial viability. It was a restaurant and staff wanted to see if the applicant had the funding to move it forward. The applicant was not present at the meeting, and Ms. Brooks commented the applicant became defensive when staff asked for additional information. The applicant was invited to the meeting and were told if they appeared and were still interested, staff would give them a list of documents that were needed and 20 days to produce them. Ms. Brooks thought the applicant's failure to appear for a project of this magnitude reflected their lack of interest. Mr. McGinely made a presentation on his concept. Afterwards, there was Board discussion they would rather see an active use and the activity must attract individuals to Ocean Avenue. The use, as proposed, would not make Ocean Avenue a destination, nor would it have an immediate impact. Aside from the fact that live /work units are not successful, the selected proposal, ideally, would provide an 18 -hour activity on the street. As to a restaurant, Mr. Buchanan would accept an interim lease, but noted barbeque restaurants do not do well. The CRA purchased the Magnuson House for $820,000, and staff indicated there are projects coming down the road which may garner interest that was more appropriate for the site. Additionally, parking was anticipated to become available in April 2014. Discussion ensued that the applicant may not have appeared due to an emergency. Some members thought allowing 20 additional days to submit the documentation would be permissible. Some members disagreed. Motion Mr. Karageorge moved to reject both proposals and revisit this when staff receives interest. Vice Chair Hay seconded the motion. Ms. Brooks pointed out that reissuing an RFP may not generate responses. Staff was open to hearing from interested parties about the site. Additionally, the streetscape will change once the old high school is redeveloped. It was likely that there will be a lot more interest in the future. Vote The motion passed unanimously, and Mr. Karageorge clarified his motion did not include a time limit. C. Consideration of Terms of Conveyance of 222 N. Federal Highway to One Boynton LLC Ms. Brooks explained at the last meeting, staff and legal were directed to draft a conveyance document that would include a claw -back provision and other terms. The project was proposed in four phases, with the first phase being an office building for a 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL May 14, 2013 law firm that would employ up to 200 people. Phases two and three were proposed as mixed -use residential towers. Phase four would be a flagship hotel. David Camalier, the principal of One Boynton, LLC, agreed with the terms and legal staff would draft a formal conveyance agreement that would be brought back for the Board's approval. The additional provisions that were included were as follows: ➢ Site plan approval by the City of Boynton Beach of an office building of at least 40,000 square feet by December 31, 2013. ➢ Construction permit approval by the City of Boynton Beach for the office building by March 30, 2014. ➢ Construction of the office building to begin by May 1, 2014. After the property conveys, the following conditions would apply: ➢ Construction of three water features, public plaza and walkways, and landscaped areas as shown on the proposal submitted to the CRA Board on April 9, 2012. Changes to the proposed plans must be approved by the CRA Board. ➢ Inclusion into the site plan of a covered Palm Tran stop that will be architecturally consistent with the project. ➢ Once the overall site plan is approved, material changes to the plan would require Board approval. Failure to do so would trigger the reverter clause of the agreement. ➢ Failure to construct the public improvements or the bus shelter shall trigger the reverter clause. Motion Mr. Karageorge moved to approve the business terms and direct staff to work with legal to draft a conveyance document to bring back to the Board at the next meeting. Mr. Buchanan seconded the motion that unanimously passed. Chair Taylor commented he received a call from Mr. Knight who was working with the developer's attorney, who had a concern the project would not move forward. He then received a call from Mr. Camalier who would be in town next week. Mr. Camalier explained he was very much in favor of moving forward, but he had some questions. Chair Taylor thought the items he discussed were very solvable, and he asked Ms. Brooks and staff to set up a meeting to work with Mr. Knight and Mr. Camalier to resolve them. 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL May 14, 2013 XIV. New Business: A. Consideration of Short Sale Terms from HAP Grant Recipient Martha Guerich Ms. Brooks explained the buyer for the property changed, but staff received all the documentation they needed earlier in the day, and they received the HUD statement and contract. The item was good to go. Motion Vice Chair Hay moved to approve. Mr. Merker seconded the motion that unanimously passed. Mr. Fitzpatrick inquired about the agreements and asked if things did not work out, whether the Agency was in the business of accepting short sale terms in the future. Ms. Brooks explained this was a project at the Preserve. The project was originally a "For Sale" townhouse project. The developer has a DIFA agreement and wanted to switch the project from a "For Sale" community to a low- income rental community. The individuals who originally purchased and received down - payment assistance were firefighters, teachers and police officers. They are now in the middle of a low- income development. Staff did not support the change, but the Board voted to allow it and the units would never be worth anything. The Agency assisted twenty residents that were foreclosed on or who short sold. The only other type of project the CRA was involved in, that could have a similar circumstance, was single- infill housing, and there was only one instance there. B. Consideration of Dates for Budget Meeting Ms. Harris explained budget hearings are usually held in August. The City's are held the third week of July. The following dates were suggested: ➢ August 14, the Wednesday after the CRA meeting ➢ August 21, the Wednesday after the City Commission meeting ➢ August 27, a Tuesday ➢ Aug 28, a Wednesday The meeting would start on the selected date at 6 p.m. and be held at the Intracoastal Park Clubhouse. After discussion, there was consensus to meet on August 27, 2013. It was noted none of those dates were good for Mr. Merker and an inquiry was made whether he could call into the meeting. Attorney Cherof advised he could not. The member has to be ill or experience some other critical event. A routine absence for the meeting was not permissible. 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL May 14, 2013 C. Consideration of Issuing RFQ for Professional Services Mr. Simon explained the item was a request for Qualifications for Professional Services for architecture, landscaping, engineering and civil work. In the past, the CRA issued an RFQ, and from that RFQ, solicitations and submittals from professional organizations, such as Kimley Horn, REG Architects, and VHB Miller Sellen (formerly known as MSCW), were received. The current firms were selected from that RFQ. After seven years, staff felt it was time to issue another RFQ. He noted there are many projects forthcoming, and it was a good time to review all options. Motion Vice Chair Hay moved to approve the issuance of an RFQ for Professional Design and Engineering Services with the submission deadline of 3 p.m. on June 24, 2013. Mr. Karageorge seconded the motion for discussion. Mr. Karageorge inquired if the RFQ would prohibit the current firms from continuing. Ms. Brooks explained any outstanding work orders for the firms currently under contract would be completed through an addendum to the existing contract, if they were not selected. New terms would fall under the new contract, but the existing contractors would have to reapply. Vote The motion unanimously passed. D. Consideration of Issuing RFP for Insurance Brokerage Services Ms. Harris explained the current five -year contract for insurance brokerage services was expiring and an RFP was needed. The proposed RFP was heavily modeled on the City's last RFQ and RFP, and City and legal staff reviewed it. She thanked Lori LaVerriere, the City Manager, for volunteering her staff to help. The RFP would commence with a two -year initial term with two, two -year renewals. The broker would go to market to look for bids on the Agency's insurance needs, evaluate them and bring back the most responsible, cost - effective bids from high -rated companies that can be relied on. Additional terms were added, including being available to meet with staff at least twice per year and have experience with municipalities and other public entities. It would be an apples -to- apples comparison. In addition to the public notice, she would reach out to the City's current brokers to ensure they were aware the Agency was in the market for a new broker. If approved, staff would issue the RFP May 15th, and it would come back to the Board with recommendations for review and approval in July. 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL May 14, 2013 As to the Agency's current legal situation, an inquiry was made whether it would carry over to the new insurer as it would affect the market quote for that line of insurance. Attorney Cherof explained there will be no ramifications regarding any ongoing litigation carrying over as the claim is made under a certain policy, and it is pursued under that policy until it is completed. Motion Mr. Casello moved to approve. Mr. Merker seconded the motion that unanimously passed. E. Consideration of New Commercial Construction Project Incentive Program Mr. Simon explained the application and guidelines for this item were included in the meeting backup and the CRA had several programs, beginning in 2005, with the Commercial Fagade Program. In 2009 and 2010, staff worked to develop new ways to incentivize the area and help existing businesses and attract new ones. Staff developed a Rent Reimbursement Program, an Interior Build -Out Grant, and Commercial Signage Grant. The Commercial Interior Build -Out and Rent Reimbursement Grants were tied to job creation and the Commercial Fagade Program was just for existing structures. During those years, they assisted 40 existing business and 18 new ones, with the bulk of them assisted in 2009 and 2010. The Board approved $730,000 in CRA grant funds for the programs, and the private sector match was $5.8 million, which was great public -to- private dollar ratio. By working with businesses to identify what they needed, they developed a program to assist with site development and permit -fee type costs for new projects. Mr. Simon pointed out there are substantial costs involved with permitting and impact fees, and this Program would be an incentive to advance an existing business and recruit new business to Boynton Beach. Staff was targeting businesses between the $250,000 and $2 million investment mark. The program would provide a 3.3% reimbursement of the initial construction cost as listed on the permit application. The guidelines would not allow reimbursement of the fees to that percentage until after the developer paid their permit fees and received their Certificate of Occupancy. Mr. Karageorge commented since 2004, the grant programs generated 188 new jobs in the City. The program is another economic tool and not every municipality was offering it. He thought it would make Boynton Beach more attractive. 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL May 14, 2013 Motion Mr. Karageorge moved to approve the Commercial Business Grant Program as outlined and the Commercial Project Construction Incentive Program Guidelines and application. Vice Chair Hay seconded the motion. Vice Chair Hay thought the program was great and reminded all, for the record, that submission of an application is not a guarantee of funding. It is the responsibility of the applicant to read and understand all aspects of the application and guidelines. Vote The motion unanimously passed. XV. Executive Director's Report: A. Project Status Update There were no questions on the update. XVI. Future Agenda Items: XVII. Adjournment There being no further business to discuss, Chair Taylor adjourned the meeting at 8:06 p.m. OdwUA�X1, Af Catherine Cherry Minutes Specialist 051513 13