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Minutes 11-12-13 MINUTES OF COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD ON TUESDAY, NOVEMBER 12, 2013, AT 6:00 PM, IN CITY COMMISSION CHAMBERS, 100 E. BOYNTON BEACH BOULEVARD, BOYNTON BEACH, FL PRESENT: Jerry Taylor, Chair Vivian Brooks, Executive Director Woodrow Hay, Vice Chair Jim Cherof, Board Attorney Buck Buchanan Joe Casello Mike Fitzpatrick Mark Karageorge David Merker 1. Call to Order Chair Taylor called the meeting to order at 6:30 p.m. II. Invocation and Pledge to the Flag The invocation was given by Vice Chair Hay followed by the members reciting 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 None. B. Adoption of Agenda Motion Vice Chair Hay moved to approve the agenda. Mr. Merker seconded the motion that unanimously passed. MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA NOVEMBER 12, 2013 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 Mark Karageorge disclosed in years 2008, 2009 and 2010, he was advising a developer about a project. During 2009 and 2010, Mr. Karageorge ran for office. He disclosed a person contributed to his campaign was the attorney for the current Boynton One LLC project. He was not elected and there was no current benefit, but he wanted the relationship disclosed on record. He also discussed forthcoming matters and other legal issues which may come before the Board with Attorney Ken Spillias while attending the Florida Redevelopment Association (FRA) Conference. He spoke with Attorney David Tolces, Counsel for the Delray Beach CRA about the Auditor General's findings and recommendations. He met with the owners of DJs Grill regarding the driveway curb -cut project and he also met with Steve Michael and Harvey Greenbaum with Hudson Holdings about a future MLK project. Chair Taylor disclosed he was in contact with Mr. Camalier's representatives, Attorney Bonnie Miskel and Rebecca Shelton by phone and in person to discuss how the project was progressing. B. Informational Announcements Mr. Buchanan attended the Florida Redevelopment Association (FRA) Conference and advised it was excellent and informative. He attended and worked the Pirate Fest and Harvest Hoedown. He explained they were all great events in Boynton Beach. He had no conflicts to report. Mr. Casello also attended the FRA conference and the Chamber dedication with Ann Barrett, a founder of the Chamber of Commerce. He and other Commissioners participated at the Readersize at the Amphitheater, and he and his wife volunteered at the Hoedown at Intracoastal Park. He commented most Commissioners attended the Veterans' Day Ceremony at Veterans Park. Vice Chair Hay agreed with Mr. Casello's comments and also attended a Ronald McDonald event. He brought back the 2013 Best Look Brochure from the Florida Redevelopment Association Awards and commented Boynton Beach was well represented. Mr. Fitzpatrick commented he had a brief conversation with Commissioner Santamaria at a Sierra Club event and he met with Steve Michael and Harvey Greenbaum, principals of Hudson Holdings. 2 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA NOVEMBER 12, 2013 Mr. Karageorge explained he attended the FRA Conference and Boynton Beach was nominated for more awards in Florida than anyone else. The team is received with great respect. He noted there were many Family Dollar Stores in the CRA Districts in Tampa and a Family Dollar store was on the meeting agenda. The Tampa CRA was also opening a Walmart, just as the Boynton Beach CRA did. He was pleased to know the CRA has a reputation for doing things right. Chair Taylor commented he attended the aforementioned events and pointed out Mr. Fitzpatrick played a big role with the Stage Left Theatre and helped construct the stage, which was appreciated. He spoke with Attorney Spillias socially at the FRA and he commented they Agency received an award for the Little House and they were mentioned in the program five other times for their projects. He congratulated the Board. He and Messrs. Casello and Fitzpatrick attended a groundbreaking off West Seacrest to construct a home for disabled veterans. The home will be a three- bedroom, two -bath home. Disabled veterans worked alongside contractors on the project, giving them home building experience so they can find future employment, hopefully in the construction industry. VII. Announcements & Awards: None VIII. Consent Agenda: A. Approval of Minutes — CRA Board Meeting, October 8, 2013 B. Approval of Period Ended October 31, 2013 Financial Report C. Monthly Purchase Orders I. Pulled Consent Agenda Items: None. X. Information Only: A. Public Comment Log I. Public Comments: (Note: comments are limited to 3 minutes in duration) Chair Taylor opened the public comments. No one came forward and public comments were closed. II. Public Hearing: None 3 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA NOVEMBER 12, 2013 III. Old Business: A. Consideration of Issuing an Invitation to Bid for the construction of the CRA owned Public Parking Lot Project located at 208 NE 1st Street Mike Simon, Assistant Director, reviewed the item. The invitation to bid would be released after the CRA received final permit approval of drawings that are in a revision review in the Building Department. He anticipated receiving them back early next week and the Board will address the submission and release date, contingent on when they receive final approval. The document was reviewed by Legal, less the submission and release dates. Motion Mr. Karageorge moved to approve the issuance of the invitation to bid for the public parking lot project on CRA property located at 208 NE 1 st Street within three business days of receiving the final building approval from the City of Boynton Beach. Mr. Fitzpatrick seconded the motion. Vice Chair Hay did not see a crosswalk on NE 1st Street. Mr. Simon explained the City's Engineer and Building Department reviews did not support the crosswalk at the intersection of 1st Street and 1 st Avenue. They addressed the drawings per the City Commission comments, but were asked to remove it. The crosswalk midway on 1 st Avenue that takes one to the sidewalk connector remained. The street is a City -owned street. Currently the north /south street, (1 Street) is not a stop street. The east/west street (1 Avenue) is a two -way stop. In order to decide how to mark the four corners, it was the City's position it involved more research, analysis and markings than the project warranted. The CRA and their engineering firm took direction from the City Commission and submitted the drawings with the crosswalk as discussed. Andrew Mack and the Building Department staff took the position they would move forward with the review of the drawings with the mid - street crosswalk on 1 st Avenue. As the project progresses, they will see what can be done to accommodate it. Vice Chair Hay thought it should be reviewed down the road because it is not just an ordinary parking lot. There will be kids, parents and strollers using the lot and it will add to the safety of the pedestrians. He requested the item be addressed at the next City Commission meeting. Vote The motion unanimously passed. 4 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA NOVEMBER 12, 2013 B. Consideration of Agreement for Legal Services between the CRA and Lewis, Longman & Walker, P.A. Motion Vice Chair Hay moved to approve. Mr. Karageorge seconded the motion. Mr. Merker expressed he was confused and had many questions. He understood the change of attorney was based on a conflict of interest. He supported the idea of discussing what was right for the City; however, his research regarding any conflict of interest with the attorney over the last five years revealed there were none. Since he found no conflicts, he pursued the matter. He thought the real issue was cost. He was surprised the attorneys were negotiating their fees. He commented the fee for the current counsel is $195 per hours. The new law firm quoted a higher fee and then reduced the fees and came down to $41K a month for everyday work and $230 per hour for cases needing to be defended. The cost for the current attorney is less. Funds were also proposed to be .added to the line item. He inquired why they were potentially spending more. He was against the move and was present to protect the City and preserve and conserve funds. Chair Taylor explained the need for other counsel was already decided and had nothing to do with the current item, which was consideration of the agreement. Mr. Merker differed and thought cost was a major issue. Mr. Casello thought the way the applicants were vetted was skewed. He did not feel comfortable having all the applicants in the room, giving three to five minutes to present their proposal. He had mentioned to Ms. Brooks he was concerned about the higher fees. It was explained to him they would be negotiated to be in line with the current counsel's fees, which he understood now was not the case. Personally, he was satisfied with the current counsel and was disappointed with the fees. Vice Chair Hay recalled instances where there were possible conflicts. One was the parking lot on 1st Street and the issue of handicapped parking and whether there was an increase or decrease. The matter came before the Planning and Development Board, and the Board was represented by Mr. Cherof's firm; however, Mr. Simon had no representation. To him, that was a conflict when the City is represented by Mr. Cherofs firm and the CRA is not represented because the same firm represents both parties. He recalled another time the CRA was paying for the maintenance of a streetscape, and it came to the point they could not do so any more, which could have been opposed by the City. It could have been another conflict. There was another issue pending that would probably have a conflict. His position has always been to have separate legal counsel for the City and the CRA. Mr. Karageorge clarified the reason why he moved to issue an RFP for legal services was to avoid the appearance of conflict. The FRA suggested to the members at their 5 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA NOVEMBER 12, 2013 training, there be separate legal counsel. Some city attorneys handle CRA matters and others have separate counsel. He pointed out Attorney Cherof's firm had the opportunity to respond to the RFP and did not respond. After going out to RFP, the Board made a decision from the four applicants who responded. The members are now discussing the agreement before them. They already made the decision and as a point of order allowing discussion on the matter could only be achieved from someone on the prevailing side to do so. He agreed with Vice Chair Hay's comments and was familiar with the listed potential conflicts, which they were able to overcome. He expressed there was, a potential conflict of interest with a project coming down the road. Chair Taylor agreed with Vice Chair Hay and Mr. Karageorge. Mr. Merker explained the word potential did not mean it would occur. He found the issue being no one mentioned the cost. If all were satisfied with the current counsel, the only issue is fees. If the fees are less, he did not understand why the Board wanted to spend more to accommodate items that may or may not have conflicts and thought it was ludicrous. Chair Taylor explained the fees were not the only issue. Mr. Merker differed and noted there was a significant difference of $35 per hour between the two firms. Chair Taylor reiterated the FRA strongly recommended there be separate counsel. Vice Chair Hay called the question. Vote The motion passed 5 -2 (Messrs. Merker and Casello dissenting.) C. Status and Direction of the One Boynton /Kanner & Pintaluga Project Ms. Brooks explained since March, when they issued an RFP for property at 222 North Federal, they got a response from One Boynton for a project involving an office building, residential buildings and a hotel. Staff has been trying to obtain development terms to enter into a development agreement. When an RFP is issued, the expectation is to get business terms and a development and /or purchase agreement follows. Staff has not been able to obtain such. Staff made an offer on a piece property to locate Kanner and Pintaluga on their site, contingent upon an appraisal and bringing it before the Board. Ms. Brooks and Attorney Miskel have been emailing trying to get a response from her client on the contingent offer on the land, which was a very generous offer. Between the cash and all else, the offer was $2 million for .6 of an acre. This is a high priority project that the Board has identified as Class -A office space, creating jobs downtown which meets two goals of the Board. Ms. Brooks tried to elicit a response and they could not get a price from the seller, so the CRA made the offer. The negotiation between Kanner and Pintaluga and One Boynton, who the CRA would be selling the land to, has a disconnect. Typically, the letter of intent is between the entities buying the land (the CRA) and the party who 6 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA NOVEMBER 12, 2013 would be selling the property or leasing it. There has been no real negotiation involving the party who issued the RFP, which was the CRA and the respondent, who was One Boynton, on the potential terms. Ms. Miskel has emailed Ms. Brooks over the weekend and explained Mr. Camalier rejected the CRA's offer for the land. Mr. Karageorge inquired why the CRA offered $2 million for a property with a market value of $600,000, based on a nearby similar undeveloped parcel. Ms. Brooks explained the parcel across the highway was under contract for about $580,000. Mr. Casello inquired if Mr. Camalier had an appraisal. Ms. Brooks explained Mr. Camalier got an appraisal depicting the property when developed. It was not an appraisal banks could use. Mr. Merker commented in purchasing land, there is always negotiation. The party purchasing the land wants to pay as little as possible and the party selling the land wants to get as much as possible. The third party is the "City" (CRA). The key point is the CRA would like to be informed periodically. He inquired whether the project was dead or alive, and if alive, hopefully it would come to fruition. Attorney Bonnie Miskel, on behalf of the property owner, explained they believed the project was alive until they read an article saying the project was dead. They did not believe it was an accurate representation of what had occurred. She clarified she just got involved in the matter during the last two months, not in March. The matter was unique because the CRA was not interested in acquiring the property unless the firm of Kanner and Pintaluga was involved in the transaction, which complicated the matter. It was not simply a negotiation between a willing seller and willing buyer. It was a situation with a conditionally willing buyer and a conditionally will seller and a third party that is not bringing money to the table, but must occupy the property for the Board to find the project appealing. It is not a typical transaction. When Attorney Miskel became involved, she contacted Ms. Brooks and started to put potential terms together. After discussions with the broker, they recognized the three parties did not understand where each party stood. She had anticipated the future occupant, Kanner and Pintaluga would participate in the transaction, but learned they had a list of requirements, but did not bring funds to the table. There were items all parties were unaware of that needed to be resolved in order to return to the Board with negotiated terms. Attorney . Miskel believed all parties were on the same page. The CRA made an offer, which her client rejected. At her next meeting with Ms. Brooks a few days later, they verbally advised the. offer was rejected, but the idea was there may be other ways to come to terms, such as land swaps to make the transaction more financially feasible for all parties concerned. 7 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA NOVEMBER 12, 2013 When Attorney Miskel and all parties met at the CRA office, including the broker representing Mr. Kanner, new information came forth. Her understanding was they needed to ensure that the ultimate user had "skin in the game" and was prepared to move in, in the event they negotiated a deal. Subsequent meetings were held. Within a few days, she drafted a letter of intent and they did not respond until last Tuesday. They now have something from them which would warrant continued dialogue about the matter. There is an understanding between the user and the seller so they can negotiate and deal with prices, appraisals and all else. There are three committed parties. Chair Taylor has been involved talking with the parties, as the project was substantial if they can make it happen. It comes down to money. The CRA made a good offer and CRAB often pay more than a project is worth, but the idea is to kick -start the downtown. The CRA put "skin in the game." Mr. Camalier needs to provide an acceptable price and the CRA needs to find out the position of Kanner and Pintaluga. They are getting free land to build a building, and if there is a gap, perhaps staff can contemplate how they can fill it. He suggested allowing another 30 days to see if an agreement can be negotiated. At the end of 30 days, the Board can determine whether to move forward. Motion Vice Chair Hay moved to do so. Mr. Fitzpatrick seconded the motion. Mr. Buchanan commented the CRA is buying, One Boynton was selling. He inquired what difference the third party would make. Attorney Miskel explained the CRA is only interested in buying the land if One Boynton brings in the law firm, with all its employees, and their commitment to construct an office building of minimum size of 50,000 square feet. If they are not part of the deal, it was Attorney Miskel's understanding there was no deal. Normally, a sale occurs from a willing seller and a willing buyer if they can agree on a price. Kanner and Pintaluga has submitted a contract that suggests they are willing to build a $20 to $25 million dollar office building. It was just received last Tuesday. Mr. Buchanan inquired why the CRA was not negotiating with the law firm. Ms. Brooks explained the way she would have structured the deal was she would have drafted an agreement with Mr. Camalier, contingent on the CRA getting a letter of intent from Kanner and Pintaluga. Instead, they are getting a letter of intent from Kanner and Pintaluga, contingent on them making a deal with the CRA. Mr. Fitzpatrick agreed with the concerns raised by Mr. Buchanan. He commented the Board just wanted One Boynton to sell the land to them and thought Attorney Miskel had taken on too much as the CRA is paid to negotiate. He thought Mr. Camalier was complicating the deal. Attorney Miskel clarified no one said the CRA could not negotiate and Mr. Camalier was willing to work with the Board if they could come up 8 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA NOVEMBER 12, 2013 with a reasonable price. The owner was approached to purchase the land and he thinks it's a great idea and for downtown. So far, the parties have gotten much further in one month than they had in six. She thought they were moving in the right direction. They are now in a place to have productive conversations. The landowner would not just give away the property. Ms. Brooks acknowledged the progress Attorney Miskel has made and Attorney Miskel appreciated the 30 -day extension and explained they will move forward. If they cannot make the project work, they will acknowledge that. Ms. Brooks explained there is an open RFP which involves the CRA's land on the opposite corner, where they are discussing purchasing. Development business terms were still needed and all agreed it is a great project. It came down to the terms. Mr. Fitzpatrick noted there are other players coming down the road such as Hudson Holdings and LeCesse. If the CRA comes across as a push over to cut a deal, he thought they were setting a bad precedent for the next project and he would rather see this project fail than that occur. Mr. Casello noted it was Ms. Brooks' jab to bring the issue together and he left it to her to make it happen. Mr. Karageorge commented the Board issued an RFP and One Boynton responded. He agreed the negotiations were not handled in the normal development manner, and had issues with One Boynton meeting with Board members and not the entire Board. He had problems with the Anderson & Carr appraisal, as it did not look at the land in its current status, which is vacant. He also did not look at the property appraiser because it was not market value, only taxable value. When he looks at an appraisal, he reviews the market value of comparable properties. The properties used for comparisons were fully developed, not vacant. Mr. Karageorge felt that if staff handled the matter in the usual way, they would have secured intent from Kanner and Pintaluga and the CRA needs to negotiate with One Boynton on a reasonable value. He acknowledged the owner over paid for the land and his timing of the purchase was when the market was at a high point. He liked the additional 30 -day extension and he had confidence in staff and Attorney Miskel. He wanted to see 200 jobs come to the location, but he would not give away the store. There may be others interested. To his knowledge, this is the third proposal made on the property. He commented he would not accept the Anderson Carr appraisal. Mr. Merker agreed with the Mayor and the suggestion for a 30 -day extension. It was an important project and catalyst for the downtown. He hoped all parties would make the project work as it would be good for everyone. Chair Taylor explained he met with Mr. Camalier and noted Mr. Camalier did not meet with all Board members. He clarified he invited Mr. Camalier to town and to sit at the table with Mr. Kanner to determine the status of the project. He thought it was a productive discussion. Attorney Miskel expressed confidence in staff. Ms. Brooks 9 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA NOVEMBER 12, 2013 explained she and Attorney Miskel communicate well. Mr. Casello suggested negotiations remain at the table and not in the press. Vote Mr. Merker seconded the motion that unanimously passed. (Mr. Merker left the dais at 7:33 p.m.) Mr. Fitzpatrick noted he went to the water planting event and parked on the CRA property. There was sod laid, which looked like it would die unless it was watered. Ms. Brooks commented it is Bahia grass, and when it rains, it will come back. It cost over $3,000 for an irrigation system and a pump. Mr. Simon explained they typically sod over the demolition area. For two months, it rained so heavily, they could not harvest the sod. After it was laid, it had not rained. The grass is bred to come back when it rains. They were going to irrigate the area, but the staff was hesitant to spend the funds to beautify the corner in the event the property changed hands. Staff will update the maintenance bid. Currently, there is not enough pressure in the line to irrigate all the sprinkler heads, which requires a different system. (Mr. Merker retumed to the meeting at 7:34 p.m.) Mr. Fitzpatrick commented he was concerned if negotiations did not progress, the rest of the property would be maintained and not the CRA lot Ms. Brooks explained staff would prepare the bid to go through the process. IV. New Business: A. Consideration of Request by Boos Development Group for Acquisition of CRA Property at Martin Luther King, Jr. Ave. and Seacrest Blvd. Ms. Brooks explained there were a number of development groups looking to develop retail on MLK and Seacrest. Of the three, Boos Development Group has been able to assemble property on two lots needed to construct a retail store on the SW corner of MLK and Seacrest. The request is to obtain two lots on that corner. One was a former convenience store and one is the old church that was just vacated on 9 and Seacrest. They are seeking the lots at no cost because the other two lots they have under site control cost them in excess of the value of the properties, which was what they anticipated. One lot was vacant on MLK and the other had a small house on it. Paul Tremblay with Boos Development Group, 5789 NW 151 Street, Suite B, Miami Lakes, the regional director of real estate and development for the south Florida office made a I presentation. Also present was Henry Dirksen, Real Estate Manager, and Sharon Boggs, Project Manager. 10 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA NOVEMBER 12, 2013 The development group is a privately -held, family -owned company, founded in 1997. The executive team has more than 200 years of collective experience. They have retail development and public accounting backgrounds in addition to extensive in -house real estate research and acquisitions experience, and development staff can deliver retail expansion programs nationwide. They handle all phases of the project from acquisition to turning over the keys. They have a unique business model and provide real estate services to selected clients. They have developed patterns of strategic growth in response to specific client needs. Their headquarters is in Clearwater, and they have offices in Miami, Atlanta, Birmingham, Bentonville, Philadelphia, and Southern California. They are a fee for service developer. They are paid a set fee to deliver a product to a client. Regardless of the land value or return on investment to the client, their fee is only based on the success of the project as a lump sum and not on a graduated sale. They are paid at the end. They have done over $600 million worth of work for CVS, Family Dollar, Chase Developers, and Carrabbas, Outback and Advanced Auto Parts. Family Dollar is a primary client and they pride themselves in being a neighborhood store. Once the store opens, they will ensure it will be a positive addition to the community. The store's core clients are moms with limited means who constantly budget balance. The store employs between eight and 10 persons and always hire within the community. Urban shoppers need the same value, convenience and brands as other shoppers and they do a good job with having up -to -date products. Henry Dirksen, of the same address, is a real estate manager who identifies sites where there is a need for a store and where it would benefit the community and the client. They reviewed the SE corner of Seacrest and MILK and identified four parcels, two of which are owned by the CRA at 1000 and 1010 N. Seacrest, and two parcels owned by private property owners. He worked with the owners to acquire the property to assemble the land for the store and agreed on a price, and signed contracts. They were now seeking CRA support for their parcels. Boos Development visited the site with the Family Dollar Vice President, who approved the project to be advanced to their Real Estate Committee to seek their corporate approval, which would occur after CRA approval. The entity that will close on the property is Family Dollar and they sought the CRA's support. He showed an aerial of the different parcels and the site plan. They received input from the Planning and Zoning staff and promulgated a site plan that meets the requirements, of Family Dollar that accesses visibility, trucking and store operations, but also meets the goals of the CRA Overlay District for a store that will provide a benefit to the community. The site plan did not encroach on a site with public art or mechanical equipment that operates the traffic signal. They are working through what the ultimate product would look like and drafted a very preliminary elevation. Photographs of what the other stores looked like were viewed. 11 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA NOVEMBER 12, 2013 Mr. Karageorge inquired about curb cuts after the monument sign on Seacrest for dumpsters; however, it was learned that area was for open access. Mr. Merker inquired if the store was corporately owned or franchised and learned it was corporately owned. Mr. Tremblay explained the project is an open infill project that meets the goals of the CRA. They believe it is the highest and best use of the property. It is very compatible with the community, and it is a nice product that will fit in with the neighborhood. It will contribute to the tax base, add jobs, can be a focal point to the area, and it has convenience and adds value to the area, which could provide a leadership effect to the area. The store includes groceries. Vice Chair Hay was excited about the project. It was a long awaited project to provide a jump -start to the area. He inquired about property on 9 th Avenue which would prevent Family Dollar from squaring off the property. It was explained that lot was a residential lot and was not zoned for commercial use. Square is always better, but in this case, it would add a cost to the property. The project could work without it and remain in budget. As to whether there were any mom and pop operations in the near vicinity that could be affected, Ms. Brooks explained there are small convenience stores in the neighborhood, but they are not full service. The project would have food and sundry items. The existing stores do not. She thought the convenience stores were not providing what the neighborhood would like. In the Heart of Boynton plan, the neighborhood wanted the stores gone because in many cases they are a nuisance. Chair Taylor explained, having spent many weekends trying to stamp out drugs, this type of store will accomplish what the CRA is supposed to do. They have eliminated undesirable operations and they will bring in something the community wanted. This would be the first step to upgrade the neighborhood. Mr. Buchanan supported the project and requested staff work on the appearance of the building as the elevation could be more visually appealing with a floribbean flavor and enhance Ocean Breeze West. Vice Chair Hay agreed and commented he had spoken to the owner of the closest business, just east of the proposed project and told him of the potential for the project and he had no problem with it. Motion Vice Chair Hay moved to publish an Intent to Dispose of the Real Property at 1000 N. Seacrest Boulevard and 1010 N. Seacrest Boulevard, including the legal description in the notice, conduct an independent real estate appraisal of both parcels and schedule a review of parcels at the January 14, 2014, CRA Board meeting. Mr. Karageorge seconded the motion. 2 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA NOVEMBER 12, 2013 Mr. Fitzpatrick commented Hudson Holdings was also discussing a grocery store located a few hundred yards away. Ms. Brooks explained in her conversations with them, they were talking about operating something different than this. She thought they would make adjustments as needed. Mr. Fitzpatrick pointed out they had a budget for the property and two property owners exploited it knowing the CRA wanted the project to come to fruition. . He inquired if this was a trend and where the balance was. He thought it was the same thing that was occurring with Kanner and Pintaluga. Mr. Casello noted they paid $345,000 for a parcel appraised at $35,000 which was the current selling price. Ms. Brooks explained the proposal was to turn over the property for $10. There was a convenience store on the property when it was purchased for $345,000 in February 2010. Ms. Brooks explained they have to obtain appraisals for land purchases. He questioned paying $345,000 for property they would give away for $10. Ms. Brooks responded they can request to see the contract with property owners. There are property owners who have been there a long time, one of them, the former CRA Chair, who purchased several properties where the CRA was buying land with the intent of the CRA purchasing the land from him. She commented this was what the Agency was up against. Mr. Karageorge explained the store was one of three crime nodes identified by the Police Department when they purchased it. The CRA purchased the property with the intent to redevelop it as retail for an anchor on the corner. He explained the area was a food desert and it solves the food desert problem. It takes the establishment from a convenience store to a more full service store. He wanted to know what the purchase price was and he commented they still have to go through the other hurdles to approve the development. However, it already went through the corporate Board process and if approved today, they only have to go through the real estate committee for approval. Mr. Merker thought the project was a positive attribute. Mr. Casello expressed his concern the CRA paid $345,000 for a building they demolished and then was asked to sell the land for $10. Vote The motion unanimously passed. B. Review and Evaluation of Delray Beach CRA Auditor General's Findings and Recommendations Ms. Brooks explained this item was at the request of Mr. Merker. The Delray Beach CRA had the Auditor General review their work and there were 19 findings. Attorney David Tolces reviewed the findings with them and there was nothing serious. Susan Harris, Finance Director, prepared a spreadsheet comparing the Delray Beach CRA findings to the Boynton Beach CRA and whether any findings applied to the Boynton Beach CRA. Ms. Brooks explained, for the most part, the findings do not apply to them. 13 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA NOVEMBER 12, 2013 They have had five years of clean audits. After reviewing it with Attorney Tolces, it was determined the Delray Beach CRA operates differently, as they fund non- profits annually at a very high rate. Some of the issues were they were issuing payments before they received the required reports, which the Boynton Beach CRA does not do. Mr. Merker wanted to ensure the Boynton Beach CRA was aware of the issues. Ms. Brooks agreed and noted CRA's are in the limelight. Attorney Cherof pointed out finding No. 8, means CRA staff members will be assisting Board members next year with respect to Financial Disclosures since a few members of the Board failed to timely file this past year. The matter was cured by filing, but it was after the deadline. Ms. Brooks inquired if the members file as City Commission members, whether they would have to file as a CRA Board member and Attorney Cherof responded they did not. Only the appointed CRA members would be assisted by staff. C. Consideration of Funding the Driveway Curb -Cut Closure Project Located within the Florida Department of Transportation (FDOT) Right -of -Way at 301 E. Boynton Beach Boulevard Mike Simon reviewed the item. They were working with Kimley -Horn on the Boynton Beach Boulevard Beautification Project, part of which was identifying existing conditions. One condition brought forward in the conceptual preliminary stage was the many curb cuts along the middle lane. In this case, the owner of the property at 301 E. Boynton Beach Boulevard, D.J.'s Grill, wanted to expand his facility to allow for outdoor cafe dining and other improvements. The CRA was assisting them with the improvements and they had utilized an architectural enhancement grant. In this instance, the curb cut and apron to pull into the property exists within the Florida Department of Transportation right -of -way. Staff was requesting approval to pay for the renovation and reconstruction of the apron to the FDOT standard sidewalk. It will be beneficial to the area. It eliminates an excess drive apron and allows a restaurant to have cafe dining. Vice. Chair Hay had breakfast there and commented they did a great job with the modification. This was a good improvement to the project. The platform is beautiful and the curb area needed to be addressed. He supported the project. Mr. Casello inquired why the curb existed there and it was learned it used to be parking at one time. Motion Vice Chair Hay moved to approve. Mr. Merker seconded the motion. 14 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA NOVEMBER 12, 2013 Mr. Karageorge explained they are planning on making more improvements to the site, to the exterior and it would be good if they can motivate the surrounding businesses to do the same. Vote The motion unanimously passed. V. Executive Director's Report: A. Special Events Recap — Pirate Fest and Mermaid Splash Ms. Brooks explained they tracked attendance throughout the two -day event and estimated about 8,000 people attended. Between sponsorships, concession rebates and vendor fees, they raised $12,550. Next year, she wanted to rely more on sponsorship to underwrite the events and would bring an RFQ /RFP for that service, which is outside the realm of the CRA's expertise. She hoped the funds would be raised through the Greater Boynton Beach Foundation since they are a City non - profit to fundraise for that purpose. She sought to take the larger events off the budget and onto sponsors to use the CRA funds for projects. As events become larger, she anticipated sponsorship would become easier. She was aware Corona loved the event and wanted to discuss how to make it bigger next year. The Children's Schoolhouse Museum attendance was down a bit because the mermaid tank was there. They did not have their tent erected until the second day of the event nor did they have a proper sign for the event. Mr. Fitzpatrick inquired if the CRA would keep having events crossing Federal Highway and Ms. Brooks responded they would not. B. New Businesses in CRA District Ms. Brooks advised from June to October, there were 26 new businesses in the CRA District. She thought this was indicative of the economy returning, the Agency's marketing efforts, and creating a positive business environment. She commented only two of the businesses received grants, but because there is a business - friendly environment and assistance available, it creates an atmosphere businesses will want to come to.. She thought 26 new businesses was outstanding. C. Development Projects Update Ms. Brooks explained there is a project called 500 Ocean proposed, which was what the site was formerly known as. The proposal includes 345 rental units and 15,000 square feet of retail. It is a nice looking project and she and City staff met with the developers. The CRA requested a few adjustments and the developers will submit their site plan in 15 MEETING MINUTES COMMUNITY REDEVELOPMENT AGENCY BOARD BOYNTON BEACH, FLORIDA NOVEMBER 12, 2013 early December. It was hoped they would concurrently start the construction permitting process. They requested funding from the CRA, but did not receive any. Motion Vice Chair Hay moved to adjourn. Mr. Karageorge noted the Sherwin Williams business was not listed. Ms. Brooks explained she obtains her list from the Fire Department, so the business had not yet received its Fire Inspection. It was agreed the business will have a nice impact on the area. VI. Future Agenda Items: None. VII. Adjournment There being no further business to discuss, Chair Taylor adjourned the meeting at 8:18 p.m. Catherine Cherry Minutes Specialist 111413 16 �n m Ujj, w a rr . Q m D? 0 a r m r � y m S m n Co n - rD r� c co z ea �. C- o o o r 1 rm V O w �. �(D� �,3cO O 0 r) r1 r-r — f -r r1 < Ai w O O rD U;' �� '� vgu .� N 0 � –' rD rD (D X rD �rnDc�n�•� ��- � :3 O 0 Ai Cr CL = — rD r-r Pi rD cn p O rn < -� rD O 3 CL X- rD CA 3 D LO — X�� M pu rD rD M 3 rD rD p n r-r — rD X �' (p n O ro��� �. O ��o= Pu 3� 70 =r*�c�n3 - a te � rD 70 rD LO 0 p' �, cn �' �• rD -r 3 , -�, — _. 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