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Minutes 02-11-14 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD ON TUESDAY, FEBRUARY 11, 2014, AT 6:30 P.M. IN CITY COMMISSION CHAMBERS, 100 E. BOYNTON BEACH BLVD, BOYNTON BEACH, FLORIDA PRESENT. Jerry Taylor, Chair Vivian Brooks, Executive Director Woodrow Hay, Vice Chair Tara Duhey, Board Attorney Buck Buchanan Joe Casello Mike Fitzpatrick Mark Karageorge David Merker 1. Call to Order Chair Taylor called the meeting to order at 6:32 p.m. II. Invocation and Pledge to the Flag The invocation was given by Vice Chair Hay followed by the Pledge of Allegiance to the Flag. III. Roll Call Roll call was taken.. A quorum was present. IV. Legal None. V. Agenda Approval: A. Additions, Deletions, Corrections to the Agenda B. Adoption of Agenda Motion Vice Chair Hay moved to approve the agenda. Mr. Casello seconded the motion that unanimously passed. Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 11, 2014 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 No disclosures were made. B. Informational Announcements Mr. Karageorge announced the median home price in Palm Beach County, from December 2012 to December 2013, increased 19.4% to $160,000. The time a home was on the market is 34 days less than last year, both of which were positive signs for the City. Mr. Karageorge commended those who participated in the Barrier Free 5K Run/Walk. He encouraged all to participate in the Ninth Annual Community Caring Center Walk. There is a reception the evening before. Mr. Karageorge thanked Vice Chair Hay for his service to the City as he had two more meetings left before his term ended. Vice Chair Hay thanked those who participated in the Barrier Free RunNValk and he encouraged all to become involved in the event. There was more participation this year than last. He also encouraged all to attend the Chamber of Commerce luncheon being held the next day. Mr. Merker highlighted the Ocean Beach Cafe at 412 Ocean Avenue for lunch or breakfast. The establishment was clean and neat and the prices and food were good. He thought all would enjoy the fare and he recommended the Cafe to all. Mr. Buchanan attended the Annual Chamber of Commerce Dinner Dance. This year, the theme was Green Gala, which was part of the City's theme. A good time was had by all. Mr. Casello noted the Omphoy Hotel joined the Chamber of Commerce. Chair Taylor commented he participated in the Barrier Free RunNValk and was thankful for the Park. VII. Announcements & Awards: A. Commercial Broker Reception — 3/13/14 Amy Zimmermann, Marketing, Events and Economic Development Assistant, announced on March 13, the CRA will host a Commercial Brokers Happy Hour Reception in some of the vacant spaces in Las Ventanas. They will offer food and drinks. About 50 people, consisting of local and Commercial Brokers and Associates, 2 Meeting Minutes Community Redevelopment Agency Board oynton' each, FL February 11, 2014 were anticipated. A presentation giving an overview of available commercial and developable parcels in Boynton Beach to help draw more commercial development to the area will be made. This was an extension of the Familiarization Tour conducted last year. Mr. Karageorge requested having incentive information available at the event. Ms. Brooks commented a presentation on the available City and CRA sites, and a packet of information would be available. B. Movies in the Park: February 7 — Date Night — Recap Ms. Zimmermann reviewed the February 7 th movie and advised this event had better attendance than the last due to the weather. Food and beverages were available and the CRA had Valenti ne-themed snacks. The feedback was positive. March 7 — To Be Announced Staff was considering airing the movie "Frozen" contingent on licensing at the March 7th event. Ms. Zimmermann will learn next week whether it can be used. The film is up for several awards. Future Movies in the Park dates were April 4, 2014, and May 2, 2014. C. Happy Hour Thursday — Music on the Rocks /Shaken Not Stirred January 16 — U2 by UV — Recap U2 by UV performed at the January event and the weather was a challenge. The attendees still gave great feedback and the band played for 2.5 hours straight. February 20 — Sweet Justice /Reggae (in celebration of Bob Marley's birthday) The next band will be Sweet Justice. Food and drink will be available with a Caribbean flair and a special rum drink will be offered as a Happy Hour Special. March 7th The next Happy Hour dates were March 7 featuring Wonderama, a pop top 40's group with a good local following. April 4th April 4 th will be Funk Billy Playboys, also having a good following. May 2nd The next was country band Rivertown. 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 11, 2014 D. Boynton Beach Boutique Market This was the third week for the Market and attendance was increasing. Staff was trying to rotate vendors and Sundays have been successful. Live music is provided to help provide atmosphere. The Market will run each Sunday through April. It started with 12 vendors and now has 15 or 16. It is slowly building. Chair Taylor noted he received a letter from the adjacent church that has services on Sunday. Participants were parking in the Church parking lot. Ms. Brooks explained she had previously contacted them and offered to pay for parking, but they were not interested. Ms. Brooks will re- approach them. The market manager was told not to permit attendees to park in the Church parking lot. VIII. Consent Agenda: A. Approval of Minutes — CRA Board Meeting, January 14, 2014 B. Approval of Period Ended January 31, 2014 Financial Report C. Monthly Purchase Orders Motion Mr. Karageorge moved to approve the Consent Agenda. Mr. Fitzpatrick seconded the motion that unanimously passed. 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) Rolando Barerro, 422 W. Industrial Avenue, thanked the members that attended the Art Al Fresco event and the Board for the funds. Much of the community came out and he was glad his business was in Boynton Beach. As a result of the event, the organizer of Art Palm Beach invited the Arts District to the next Arts Festival which was the American International Fine Art Fair the following week and for the next two Fairs. Boynton Beach shined and now had extra opportunities to connect with other areas in Palm Beach County. They received press from cultural councils and other entities, all of which helped put the Boynton Beach name out there, as well as Art Synergy and it was a good relationship to forge. 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 11, 2014 He thanked his partner Craig Guinness for his assistance and connections with the former Illumination Lighting Organization which is now under a new name. Valet service was provided, and The Glass Mermaid made a presentation that awed the crowd. They got chili and all three Starbucks in the City donated the coffee. Overall, he was deeply grateful for the support and opportunity to serve the City and looked forward to next year. He has an exhibit at the Library with a small reception on the 13th at 5:30 p.m. He invited all to attend. It is a collaborative effort with two other artists. They are up and running with borrowed equipment as they could not cover the funds for some of the losses they incurred. They are still holding art walks as scheduled on the 3rd Thursday of the month and they provide some of the best entertainment in music and dance. Mayor Taylor commended Mr. Barrero on all his work on the art festival, and expressed his appreciation to him in attracting people to the City that may otherwise not be exposed to Boynton Beach. Mr. Barrero will discuss with Ms. Brooks activating more spaces and bringing some programming that outgrew the arts district to the downtown area. II. Public Hearing: None III. Old Business: A. Consideration and Selection of Responses to the Invitation to Bid for the Parking Lot Project - NE 1st Avenue & NE 1st Street & Sidewalk Connector Mike Simon, Assistant CA Director, explained the Board approved the release of an invitation to bid in November. The submission deadline was January 16, 2014, and the CRA received 10 proposals. After a review of the proposals by CRA staff, legal counsel and Kimley Horn, the CRA's project and design firm, Russo Site Development Inc. was determined to be the lowest and most responsible bidder under the terms in the Invitation to Bid. Their bid was $510,435.24 which included a section of the sidewalk connector which runs on the east side of the property from First Street to Ocean Avenue. The sidewalk connector in the Invitation to Bid would have landscaping, bollards and lighting. If the Board approved the selection, staff would bring the contract back to the next meeting. Motion Mr. Karageorge moved to approve.. Vice Chair Hay seconded the motion. Mr. Casello inquired why the amount was $33K over budget. Mr. Simon explained the budget amount in the fiscal year it was approved in was $528K. The difference between the $528K and the $510K that was bid was to cover the 10% contingency fee. They did not have enough in the budget for both. The $33K was the difference. The bid came in under budget, but with contingency fees, it was slightly over. There is an attachment of 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 11, 2014 $33K in the Fund Balance Resolution contained under New Business. Item 14C and reallocation of a portion of that fund balance. James Brake, 710 SW 27 Terrace, was in favor of the project. It would look nice and it would help parking in the area and the Oscar Magnuson House. The motion unanimously passed. B. Consideration of Entering into a Construction Agreement with Collage Design and Construction Group, Inc. d /b /a The Collage Companies for the Boynton Harbor Marina Harbor Master Building & Fuel Dock Site Improvement Project Mr. Simon presented the request and explained the Board selected the firm at the January 11, 2014 meeting and directed staff to commence contract negotiations that is attached. Per the contract, the construction costs were $974,545 plus a 15% contingency fee of $146,182, for a total amount of $1,127,027. Staff had allocated $1.6M in this year's budget, but there will also be additional expenses to finish the interior of the Marina store or offices, as well as some of the fuel dispensers and fuel dock additions that may or may not be included in future scopes of work. Mr. Simon wanted the Board to be aware that staff did not ask the contractor to bid on those additional items as staff was unsure whether they would handle those items themselves. However, as the project develops, for ease of coordination and cost, it may be better to have a discussion with the contractor about it. The bid was under the estimates staff had for the project. The work was finishing work. Motion Vice Chair Hay moved to approve. Mr. Karageorge seconded the motion. Mr. Casello received confirmation this pertained to the Harbor Master's Office, the public restrooms, the hardscape and the landscape. This would eliminate the public having to use the restroom at Two Georges. Mr. Simon also highly complimented the firm for the communication and cooperation. The Harbor Master is WayPointe Marine Inc. Chair Taylor opened the public comment. No one came forward. The motion unanimously passed. C. Consideration of Installing an Irrigation System on the Vacant Lot Located at 222 North Federal Highway Mr. Simon presented the request was to install an irrigation system to water Bahia grass they installed after they removed the parking lot. There was some discussion of it at the November 12, 2013 meeting. The cost to irrigate the property was $3,000. 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 11, 2014 Motion Mr. Fitzpatrick moved to approve. Vice Chair Hay seconded the motion. Mr. Buchanan commented the lot looks as good as the adjoining lot and it is sufficient as is. Mr. Casello inquired about the cost of the water. Mr. Simon responded it would take minimal water and would only need watering once a week. There could be additional plant materials installed if water is supplied, which could cost $1,000. Chair Taylor commented the property would likely be given to a developer and suggested holding off. Mr. Simon also pointed out the recent rain helped the grass take hold. Mr. Merker thought the expenditure was a waste of money and Mr. Fitzpatrick commented he brought it up because Casa Costa had complained and the cost was minimal. The motion passed 4 -3, (Messrs. Buchanan, Karageorge and Merker dissenting.) XIV. New Business: A. FY 2012/2013 CRA Annual Audit Results Susan Harris, Finance Director, requested the Board accept the Annual Audit Financial Statements. She explained this was the fifth year in a row there were no audit findings. There is a strong balance sheet, sound net assets, fund balances are sufficient to meet operating requirements and reserves, and there is an unassigned fund balance that will be discussed later in the meeting. The bond refinancing saved the Agency over $200,000 in annual interest costs. The Auditor, Richie Tandoc of Sanson Kline Jacomino Tandoc & Gamarra, LLP, 805 Blue Lagoon Drive, Suite 220, Miami, was present and announced he was the partner in charge of the audit. He thanked staff for an efficient audit and announced the audit continues to be clean and their documents are well organized. Mr. Tandoc reviewed his responsibilities and the auditing standards. They issued a clean opinion for the Agency's basic finances for the year ending September 30, 2013. They issued their report on the Agency's Internal Controls, Financial Reporting and compliance in other matters and found no material weaknesses or material non- compliance issues. Both reports are dated December 31, 2013. The Agency's significant accounting policies were described in the report and they were consistent with the Government Accounting Standards. The Agency's finances and related disclosures were clearly presented in a complete matter. For the fiscal year ending September 30, 2013, management established useful lives of Capital Assets and it was determined those estimates were reasonable. Methods of accounting for significant, unusual transactions, and controversial or emergent areas, 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 11, 2014 no such areas were identified. As to significant and /or unadjusted audit adjustments, no material audit adjustments were found. Mr. Tandoc was not aware of any fraud or illegal acts that occurred during the fiscal year involving senior management or any acts involving employees that would cause a material misstatement of the financial statements. There were no disagreements or difficulties with management and there were no major issues discussed with management prior to the firm's retention. There was no relationship between the firm and the Agency or any related entities including the City of Boynton Beach that could impede their independence in regard to the Agency's Audit. They are in accordance with the AICPA rules interpretations, rulings and auditing standards and they had not performed any non -audit services for the Agency during the fiscal year ending September 30, 2013, thereafter. The firm issued a management letter pursuant to Auditor General Rules dated December 31, 2013, and there were no findings noted. In regard to management representations, the firm requested certain representations from management that were included in the Management Representation Letter dated December 31, 2013. Motion Mr. Merker moved to accept the audited financial statements for FY 2012/2013. Mr. Karageorge seconded the motion. Mr. Fitzpatrick requested confirmation that the CRA was not paying for any items they should not. Mr. Tandoc responded they were not. Ms. Harris explained the CRA pays the City for certain services such as ITS, Human Resource, payroll services and they pay certain facility charges in accordance with what a CRA should be doing. Mr. Fitzpatrick noted close to $600K needed to be placed in accounts and inquired where the funds came from. Mr. Tandoc explained those funds were left over and they were not committed or restricted. Chair Taylor opened the public comments. No one came forward. The motion unanimously passed. Chair Taylor complimented staff on exceptional work and wanted to recognize five years of audits without any findings was outstanding. Ms. Harris acknowledged Vicki Hill, who worked with Mr. Tandoc's staff. Ms. Brooks also gave kudos to staff B. Consideration of Resolution No. 14 -01 to Establish a Self- Funded Insurance Reserve Ms. Harris explained when the Marina was renovated three or four years ago, the cost was $725K and the renovations were insured at full replacement value. Due to changes 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 11, 2014 in the insurance industry, underwater items such as pilings, seawalls and underground utilities were no longer insured. A year and a half ago, while still under the old insurance policy, staff was informed the items would be insured at a value of $155K which is what they are insured at with the current firm. There is a difference of $570K and in the event something happened to the uninsured assets, the CRA would have to cover those costs. Ms. Harris pointed out sometimes unanticipated occurrences do occur. Staff recommended taking 20% on any unassigned fund balance if any, and placing it in a self- funded insurance reserve which would show in the fund balance as committed funds until the difference between the replacement value and the insured value is closed. She commented this would only occur if there were funds to do so. Mr. Merker agreed with the need to self -fund and suggested researching the issue every year to ascertain whether 20% was enough. Mr. Karageorge agreed. Motion Mr. Merker moved to approve. Vice Chair Hay seconded the motion. Chair Taylor opened the public comments. No one came forward. The motion unanimously passed. C. Consideration of Resolution No. 14 -02 Budget Amendment No. 2 — FY 2013- 2014 Ms. Harris explained this item had two components. She explained one component pertained to a project fund balance allocation to cover the prepaid items for Special Events and the Marketing fees of the Haunted Pirate Fest. The event is held in the first week of the new fiscal year, but the funds are budgeted in the prior fiscal year. When they issue the checks in the prior fiscal year, the checks are recorded on the Agency's financial statements as a prepaid but the expense hits the current year budget. To even this up, Ms. Harris needed to effect a fund balance allocation to make the budget in the current fiscal year correct. The project fund balance allocation amount was $667,940. Of that, $62,275 was for special event pre -paid items, and $5,665 for marketing the Haunted Pirates Fest as a prepaid expense. The second component was the unassigned fund balance allocation discussed previously for the self - funded insurance reserve. Assigning $119K for the insurance would leave $479,254 for the Board to allocate. Staff made three recommendations. One was to allocate $83,085 for parking redevelopment. This was $50K higher than the $33K the Board previously heard, but the purpose was to allow staff to start the design and engineering work on the second parking lot. Ms. Brooks and Mr. Simon felt $50K was the appropriate amount to allocate this fiscal year for the second parking lot. 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 11, 2014 The second item pertained to allocating an additional $20K as the CRA planned to hold more community meetings. Staff held a successful Heart of Boynton (HOB) meeting last October and was planning another Commercial Brokers meeting. They had many more meetings in mind. The third item was to place the balance of $376,169 in the property acquisitions line item. Ms. Harris explained the Resolution was worded in a way that, if the Board reallocates any of the funds, the Resolution would stand and Ms. Harris would adjust the backup exhibit according to the Board's vote. Mr. Merker inquired whether staff would make the total reallocation or just a part of it. Ms. Harris explained this was for a total allocation of any funds left over from the prior year, but the Board could decide. Mr. Merker preferred to make an assumption on the total amount versus having a percentage. Ms. Brooks explained if there was any other direction from the Board, they would recommend the Board allocate all the funds. Chair Taylor commented there was $376K toward purchasing property. At the last City Commission meeting, there was discussion regarding the demolition of the Old High School for $254K and the City Manager had no idea where the funds would come from. The item was deferred to the next budget year. He inquired if the CRA would consider allocating funds for demolition and he was told it was at the Board's discretion. He commented Ms. Brooks researched demolition and found a company who could do the work for $174,500. Chair Taylor explained this did not mean the property would be demolished; it would only take the burden off the City, and if the property would be demolished, staff would have to go out to bid. He proposed setting money aside for this purpose. Mr. Casello received confirmation the set aside does not mean the property would be demolished. Demolition would only occur if the City Commission voted to demolish the building and that decision would be made in June or July. Vice Chair Hay noted there was a study pending for the area. He recommended no decision be made until that study was presented, and cautioned it was important for the Board and City Commission to be consistent. Developers and other leaders are watching Boynton Beach and the City Commission declared the Old High School as a historic structure. A vote to tear it down would be inconsistent. He proposed to wait until the Treasure Coast Regional Planning Council completed its study before making any decision. Mr. Merker agreed with Vice Chair Hay. He inquired if the Board did not allocate the money, should he assume the money would not be there later. Ms. Harris explained if the Board did not allocate the funds and they used the entire amount for property acquisitions, the money would not be there. The Board could always reallocate funds from any budget line. Ms. Harris explained the safest thing to 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 11, 2014 do was set the money aside and if not spent, the Board had it to reallocate at their discretion. Vice Chair Hay recalled the Board previously had a line item for demolition, but because of the economy, the line item was deleted. He commented it should not be construed the Board would demolish the building just because the Board had the funds to do so. He was not opposed to putting money aside for demolition. The funds could be reallocated. Ms. Harris explained the Board did not have that line item; rather the City had a demolition line item. Mr. Fitzpatrick commented the perception was the Mayor's position was clear that he preferred to demolish the building and at the last City Commission meeting, they did not know where the funds would come from and tonight they were learning where the funds could come from. He commented the perception on the vote taken last Tuesday was not part of the agenda and was not pre - published. At this meeting, this item was dated yesterday and was not on the agenda or pre - published. It does not look good. He pointed out at the City Commission meeting, they voted to defer the item to the budget workshop and at this meeting they would set the funds aside. He thought it made them look like hypocrites. Chair Taylor commented when he got the agenda, the discussion was printed on the agenda and was pre - published. Mr. Karageorge commented the building was a city -owned building and he was concerned about the CRA designating funds for it. He was aware the CRA wanted to address other items such as the Cottage District and areas along MLK Boulevard. He spoke with Ms. Brooks about the matter because the expenditure of CRA funds was close to the line. Mr. Karageorge agreed with Vice Chair Hay that consistency was important. The City Commission designated the building as historic, and worked with an architect/developer for a project there, which was now being litigated. He commented the Board can make an allocation at a later date, but the timing was wrong. Mr. Buchanan agreed with Mr. Karageorge. If the CRA was a party and litigation was resolved, what the architect would have done to fulfill his side of the agreement could no longer be done and he believed that would make the CRA liable. His other concern was the message the CRA would send about Historic Preservation. He commented property acquisition was important and property values are turbulent. He wanted the funds to stay in property acquisition in case a situation arose so they could move. If progress is made towards demolition, the decision can be made then. Mr. Merker commented he has been the most consistent about being against the Old High School. He agreed with prior comments made by the other Board members and it raised some questions. Timing was important. He did not want what happened on the vote with the high school where all the Commissioners except he changed their mind of occur again. Mr. Merker did not want obstacles or problems. 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 11, 2014 Vice Chair Hay noted it was not a crime to change one's mind. He had questioned legal counsel about the perception if the building were demolished while in litigation. Attorney Cherof had responded the perception would not be created. He thought it would. He expressed the matter should run its course. Timing was everything. At a later date, if the Board felt it should set aside the funds, they should address it then. Chair Taylor explained Attorney Cherof was asked at the last City Commission meeting if there would be any problems if they demolished the building with regard to the litigation and Attorney Cherof responded there would be no problem. Chair Taylor also consulted with the attorney representing the City on the lawsuit who assured him there would be no problems if the building was demolished. Chair Taylor expressed he sat in on the closed -door meeting, and the developer did not care about the building and would not re- approach the City. The developer's only concern was to obtain money and the issue is off the table. The building sits on CRA property and the City at one time gave it to the CRA. The CRA can buy vacant properties within their boundaries. The Treasure Coast Regional Planning Council will come to the City with a plan how to develop the entire area. As such, it would be much easier to plan knowing what the City's plans were for the property. Chair Taylor commented it was not a secret he felt the building should be demolished. If it were a nice green space, developers would swamp the City wanting to put an anchor store there. If the City does not move on the matter, the building will remain for years and the City will continue spending $30K per year to insure it. The City Manager does not know where the funds for demolition would come from, but there are other items in the budget in the same situation. All the Board was being asked to do was set the funds aside in case they decide to demolish it, and that would be decided down the road. Vice Chair Hay wanted to hear from CRA Legal Counsel about what the City's Legal Department had indicated. Chair Taylor commented at the last City Commission meeting, Attorney Cherof was directed to return to the Commission with a Resolution to rezone the property back to its original designation and in that action, remove the City's Historical designation. Mr. Fitzpatrick explained he misspoke on his prior comments pertaining to the item being on the City Commission agenda. Mr. Merker commented June was approaching and did not want to rush the issue. Although he was consistently against the Old High School, because of the lawsuit and other issues, and no one can guarantee that something would not occur, he emphatically thought the delay until June would not hurt the City or CRA. Mr. Casello requested the Clerk produce, at the next meeting, every vote on the Old High School since the new Commission has been seated and how each individual voted to verify consistency. 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 11, 2014 Mr. Buchanan requested instructing the CRA Attorney to evaluate their legal position as a CRA, if in fact, they would pay to tear it down. There are variant opinions from different attorney's and in law, what is true and correct today may not be down the road because case law changes. He requested the CRA Attorney examine the Board's vulnerability. Ms. Brooks explained they were going into a workshop and planning session with the Treasure Coast Regional Planning Council which will include a review of the building and its viability. She suggested setting the money aside. When the session is over and there is no possibility of the Old High School being used, they could take the funds and pay the City to demolish the building and prepare the site for development. The funds are not to demolish the building, it was to prepare the site for redevelopment. She wanted it to be clear that through the planning process, that the building does not have any viable use or have any economic value. If the money is set aside and the study is issued and it supports the Board's position, the funds would be available and a transfer to the City could take place after bids are issued. The study was just approved at the last meeting, and the first planning meeting with staff will be set up. A charette, which is a public meeting, will be schedule on a Saturday. It is important to know if the building will be part of the Town Square or not. Ms. Brooks anticipated the charette would occur in April. Further work would be done in May and June. If the funds are not approved for site preparation, they can be used for other items. Mr. Buchanan still requested an opinion from Legal Counsel. Ms. Harris clarified the amount set aside would be $175K. All the other items would remain with the exception of property acquisition. The $175K for the Old High School would be subtracted from the property acquisition line item, leaving $276K budgeted for acquisitions. Motion Vice Chair Hay so moved. Mr. Karageorge seconded the motion which passed 4 -3 (Messrs. Fitzpatrick, Merker and Casello dissenting.) D. Consideration of Resolution No. 14 -03 Release of Demolition Lien on Former Boynton Terrace Properties (Ocean Breeze West) Mr. Simon presented the item. The liens were assigned by the City to the CRA for the former Boynton Terrace project. The property had a lengthy history as contained in the meeting backup. There were hurricanes two years in a row which damaged the property and the City initiated demolition. There was about $206K worth of Code and Demolition liens and the City kept the Code liens and subordinated their liens on the property behind the CRA's demolition liens. Due to the redevelopment and replat of the 13 Meeting Minutes Community Redevelopment Agency Board Boy Beach, FL February 11, 2014 Ocean Breeze project, during the title search for some of the Ocean Breeze closings, the liens surfaced. When the property was awarded to Habitat for Humanity for redevelopment, the CRA intended to release the liens as it calls for the CRA to deliver clear title as part of the development agreement. Motion Mr. Karageorge moved to approve. Mr. Casello seconded the motion that unanimously passed. E. Consideration of Purchase and Development Agreement between Boos Development Group, Inc. and the CRA for Properties at 1000 and 1010 N. Seacrest Blvd. Ms. Brooks explained an amended agreement was presented. The only substantial change was the development timeline. The agreement in the meeting backup had Ms. Brooks' dates without input from Boos Development. The amended agreement contained the correct timeline based on Nancy Byrne, the Development Director's input and Henry Dirksen from Boos. The change was contained in Section 18.3. Boos Development is in agreement with the changes and already signed it. Another substantial portion of the agreement is there is a reverter clause. Boos Development will not get the property until the construction loan and permit approval is obtained, and the design approval of the site and building from the Board is given, before being presented to the City. The changes was contained in Section 18.4 and 18.1 Henry Dirksen, Boos Development Group, 5789 NW 151 Street, Miami Lakes, was present and in agreement. Motion Mr. Fitzpatrick moved to approve. Vice Chair Hay seconded the motion. Mr. Casello inquired if it was the CRA's responsibility to remove the current structure. Ms. Brooks responded it was. Boos Development had asked for other items such as compacting the soil and underground utilities and Ms. Brooks rejected the request. Ms. Brooks explained this demolition was contemplated before this item came before the Board. The motion unanimously passed. XV. Executive Director's Report: A. New Businesses in CRA District Ms. Brooks advised four new businesses located within the CRA District in one month and the economy was improving. 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL February 11, 2014 The new water taxi was in one of the Marina Slips. The East Ocean Cafe opened for breakfast and lunch and was very good. Ocean Ridge Chiropractic opened on East Ocean Avenue and Access Accounting and Payroll opened on South Federal Highway. LeCesse came in with their site plan. Staff submitted comments and they reviewed the staff comments last week. There was a long meeting to clarify the intent of staff's comments and they should resubmit revised site plans to the City fairly soon. CRA staff was working with a full - service grocery store in the Heart of Boynton. A senior living facility was looking along Federal Highway and found a site. There is a limited service hotel developer looking at two sites: one is the One Boynton site and the other on the north end contingent on an agreement being reached. In response to a question from Mr. Casello, Ms. Brooks advised the senior living facility was a for- profit organization. B. Development Projects Update XVI. Future Agenda Items: A. Consideration of a Direct Incentive Funding Agreement with LeCesse Development Group XVII. Adjournment There being no further business to discuss, Chair Taylor adjourned the meeting at 8:06 p.m. OW J - JAt/u 9 Catherine Cherry Minutes Specialist 022494 5