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Minutes 08-18-14 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY SPECIAL BOARD MEETING HELD IN COMMISSION CHAMBERS, CITY HALL, 100 ■ BOYNTON BEACH BLVD., BOYNTON BEACH, FLORIDA ON AUGUST 18,2014, AT 5:00 P.M. PRESENT: Jerr Ta Chair Vivian Brooks, Executive Director Joe Casello, Vice Chair Ken Spillias, Board Counsel Michael Fitzpatrick ( Arrived 5:03 p.m. Woodrow Ha Mack McCra David Merker ABSENT: Buck Buchanan 1. Call to Order Chair Ta called the meetin to order at 5:00 p.m. Mr. Ha g ave the invocation followed b the members recitin the Pled of Alle to the Fla 111. Roll Call The Minutes Specialist called the roll and determined a q uorum was present. III, Old Business A. Consideration of Responses to RFP/RFQ for Ocean Breeze East Site Chair Ta commented the purpose of the meetin was to hear the two RFP proposaI s. Florida Affordable Housin Inc. would make their presentation first. Mr. McCra disclosed at the last CRA meetin he re he not be contacted, but he received a phone call from Mr. Mack Bernard, which he declined, and a call from Mr. David Katz, who on Wednesda became a lobb Mr. McCra contacted the Cit Mana and re he receive a lobb form from Palm Beach Count and Mr., Katz was on the list b the end of the da Vice Chair Casello also met with Mr. Katz on Frida re the Auburn proposal. Mr. Ha disclosed he met with Florida Affordable Housin and Mr. Katz. Meetin Minutes Communit Redevelopment A Board Bo Beach, Florida Au 18, 2014 Ms. Brooks, Executive Director, disclosed in 2005, she worked for Nei Renaissance. Mr. Merker met with Nei Renaissance and did not receive a call from a lobb or Auburn. Mack Bernard and Brian Hinners, CEO of Florida Affordable Housin Inc. and Dwi Stevenson, contractor on the pro were present. Mr. Bernard explained the Ocean Breeze RFP was a combination of American Communities, Inc., Florida Affordable Housin Inc., and a partnership with the CRA. Their Desi Construction it was Forum and the financin team was Boston Financin Team and Florida Housin The consultants were the Bo Beach Communit Development Corporation and the had a le tea M'. Their real estate development and marketin anal was reviewed. The have been developin in South Florida for over 26 y ears and receive Low Income Tax Credits, State Apartment Incentive Loans, ( SAIL ) , Urban Development Action Grants, (UDAG), and HOME funds. The received over $250 million in local, state and federal funds. The perform construction services and propert mana and have a proven track record in buildin senior and famil affordable housin Dwi Stephenson, President of D. Stephenson Construction Compan was excited to be present. He and his wife formed the compan in 1992 and the live in Delra Beach. He commented their bondin capacit for a sin pro was $25 million and the a was $100 million. The are able to do repeat business with 90% of their customers. Samples of affordable housin projects the constructed were viewed. There were some mixed-use buildin in Overton, Pahokee and other locations. Brian Hinners, CEO of Florida Affordable Housin Inc., explained the constructed Bo Ba which was 240 units for affordable moderate income seniors. He thou that was the most sustainable model to use for Ocean Breeze East as there is a need for affordable senior housin Bo Ba has 100% occupanc and a wait list. The constructed this t of housin in Miami, Delra and the Groves of Delra Bo Ba won the National Association of Home Builders Award for the finest Senior Affordable Housin pro in the countr He expressed the can do this a for Ocean Breeze. As well as bricks and mortar, the have a wealth of experience to brin The offer activities and services for the seniors, such as home health care and helpin them sta in their homes for as lon as possible. Mr. Bernard explained the location was about 4.32 acres. An aerial view of the propert was presented. The pro would be four stories. The RFP specified the li should be consistent with what exists on Seacrest Boulevard, six-foot wide sidewalks, and the ensure ve surrounds the pro The pro would be in keepin with a 2 Meetin Minutes Communit Bo Beach, Florida Au y Floribbean-style construction. final drawing of the project was viewed. scorin criteria i in the in interior the placed pro a the i or. It was a gated community, having office, clubhouse, pool, gazebos and 165 parking it e parkin was oriented i i . The proposed to build 90 senior affordable housing i t of the units would % would be two-bedroom units. well lit open space was incorporated. They beI i I the l because parking I d be easier for handi `r or individuals wi disabilities access. to The one bedroom I d be 656 square feet and the two-bedroom would 1 s feet. The rent for the one bedroom was proposed for $765, and the two bedroom would rent for $918. For seniors with low incomes, 1 lower. drawings it i viewed. reviewed Mr. Bernard i income for Palm i financin strategy. t was over $16 million. I % tax credits, so $6. million will be used as equity r I d seek project-based vouchers project- and the S.A.I.L. amount would be $2 million. I I for the l Home which Loan Bank, i, $750,000 in pre-development loans Bridge loan. The Selection i i 1 million in the i $40,000 indicated i they for. Between the total sources and use, the strategy i 1. 2 mi l l i . The Selection i indicated I million i impact to the City. land to be donated because they were i I which Beach Count HOME Fun requires i land could be applied towards. Bernard I i l included % minority participation partnered with i Development Corporation as their labor Compliance i r e would be recruitment working i Dwi Stephenson's Construction residents i rii from Beach could apply and work j I was to start construction 2015. Bernard thanked the Board for the opportunity it proposal to create a 90-unit project in . Mr. McCra inquired million i explained if Florida r l e Housing was unsuccessful in i funding, i l l seek infrastructure subsidies line item reflected ill 3 Meetin Minutes Communit Redevelopment A Board Bo Beach, Florida Au 18, 2014 $40,000 was CRA loan services. Mr. Bernard explained that was the HOME dollars and it was a misprint. Mr. Bernard explained the were not re a loan. Between the fundin sources and uses, the would have $1.2 million in loans. Mr. Merker in how close the nearest medical buildin food market and doctor offices would be to the pro Mr. Bernard responded the have partnered with ph to provide on-site care to residents. Mr. Merker in what kind of facilities would be there and if the would be in the clubhouse. He was impressed there wouI d be a medical facilit near the pro Mr. Bernard explained it would be in the clubhouse and the would brin ph and nurses to the residents for care. The could use a si to desi a portion of the cI ubhouse or all of it. Chair Ta re confirmation the $1 million was not needed and Mr. Bernard confirmed he was correct. it Ta mentioned he visited Bo Ba and was impressed. Mr. Fitzpatrick commented he had been to Bo Ba man times as a firefi and paramedic and it was well run. On Saturda once in a while, the had medical t fairs in the clubhouse. Residents there are handicapped in some wa and are livin independentI. Mr. Ha a with the prior comments and in about the one and two bedroom ratio. Mr. Bernard explained it could be modified but the one bedroom units would constitute 40% of the project and two bedrooms constituted 60%. The second bedroom couI d accommodate a famil member or other care g iver. Mr. Ha noted the buildin on 6 to Avenue and asked what kind of buffer would be used. Mr. Bernard intended to work with the nei owners to improve the area and what buffers would work to create s Vice Chair Casello stated.for the record the $1.4 million would be a net g ain of $295,000 to the CRA. He liked the 35% minorit participation which would be included in the a Vice Chair Casello in if parkin had to be on the interior because of Code. Mr. Bernard commented it would pass Code and it was best for seniors. Mike Rumpf, Plannin Director, explained an amendment was in pro Seacrest Boulevard was intended to have an urban overla parkin amendment, so if a project was not developed as a mixed-use project, and this pro would, parkin needed to be to the rear of the buildin instead of the front. Mr. Bernard commented the would have to g o throu plannin and zonin and the would conform to Code. Vice Cha.ir Casello asked what was the fastest g rowin g population. Mr. Bernard commented it was seniors and the were livin lon The pro would fit the area 4 they. Meeting Minutes Communit Redevelopment A Board Bo Beach, Florida Au 18, 2014 and r i I. it list for Bo Ba and the Groves and t j I d be occupied quickl . Brooks explained if i in December, they would i land for the match for the County HOME Dollars. . Bernard -explained because they could guarantee i t development agreement, they I request a purchase and sale contract for the land first so they could I . Chair Taylor thanked Mr. Bernard for the presentation. Steve Michael, a principal of Hudson Holdin Renaissance Inc. thanked the i to t i Holdin partnered i Neighborhood the j ect and has over 33 years in development constructing i - , retail, office, residential i li ty structures. The handle all phases of development r long-term investors in ii in i they it d. They pick developments certain ri i look for urban locations growing i n lifestyle deveI t. Mr. Michael was familiar with the parcel and purchased parcels adjacent i ne them and redevelop the block. this project i th mixed use, retail, office and residential brings a vibrancy the i and helps the downtown area sustain itself. The reason why they want an office building is it ti medical office, t it ill the retail side with it they feel is li . Terri explained the r j team is i driven, non-profit housing developer in I since 1992. The are i i ed Community Housing I Organization. The executives r with l i ngs and Steve Michael and herself. She introduced project staff comprised Michael Pecar, Development Director; Mark Karageorge, r; and Lashea Brooks, Communit and Social Services. A location i ewed and emphasized they can make a whole project i land and the l s they acquired adjacent to the subject site. Their 1 was driven l market study from Florida r l li. an Center which outlined is i i i rental homes the proposin were There is r for apartments in the t , with i potential renters includes r i I, small families and individuals not ready to r wantin downsize. There is r housin working Jim Williams, AW Architects and Rudolph Acevedo, Desi Principal, have been in t Florida mixed-use is it s'pecian The constructed % of the i buildings. i t was a miniature version in r i t Oriented District will enhance the 5 so meetin Minutes Com Redevelopment A Board Bo Beach, Florida Au 18, 2014 Attracting i in it proposal.' Rudolph'Acevedo, Desi Principal, AW Architects, explained to g uidelines i i- i l with 1 tiles, arches, parapets mission I e buildin environment to enrich the i reconstructing the bI II the parking is towards the inside i buildings the ri . It will recreate an urban it with i I, parkin trees and green space. It will be a catal for future development. The clubhouse is , feet, intended activities and i l r r hours. The streetscape will continue entire around the 1 ock. There will small landscape buffer. The project created plaza t her art plaza. The residential component of the project included - two-bedroom 1 three-bedroom j density i per acre, below allowable i . It would mixed . The development included I t s and the team has LEED professional several staff. The'tearn has completed LEED certified projects: one being platinum, i of them silver, and they will use the Florida Building lii project. i will be market rate t i th granite counter tops, appliances, laundry and balconies the I will be somethin community I . advised Lashea Brooks, Communit and Social Services, ill be room in clubhouse for afterschool programs, educational classes for all ages, and have an art would pro - Bo Beach r with t more i iti . They would reach out to local schools, neighborhood leaders l i tenants would rent, but some may want to purchase will have an in- house homeownershi inside i will offer small business l ing, have a business incubator, local barbers and hairdressers t may want to start out in one of the retail units. They would to students have involved j they i iti clubhouse. at the Ms. Murra commented the project will increase ! estate tax base, will provide community uses, and bring i t through its construction office I. They will i i opportunities i residents. The pro would attract 400 new residents I businesses. Families earning i ng at $800 a month and they will be affordable to the . The proposal addressed the r i the Heart of Bo This was an important project because the just begi i g row. to It was important to have the i development. Meetin ity Minutes Florida Commun Redevelopment A Board Bo Beach, Mr. McCra inquired if there were any discrepancies . Michael responded there were none. Vice it Casello asked if i Renaissance i i ng any funds to the project. Mr. Michael responded would, but they have not yet created their partnership agreement. Mr. Michael commented they r e able to sustain the development if over billion in loans in r j i million in Increment Financing. i it Casello commented the land was bought for a lot of mone y ears a and the CRA bonded to pa for i, which they till paying. He thou presenters r requesting the land which i for $500,000. Michael explained they were also combining ir land and buildings into r . The were i into j ect. Vice Chair Casello requested confirmafi'on they were proposing to demolish i ! relocation responded the were. The have a r residents I . Vice Chair Casello inquired the ! oor size of the tit component of the . Mr. Michael responded the units i Chair Ca'sello noted the same floor i in , since Las Ventanas had empt store fronts due to the size, t this I would well. The price t based on their market analysis. Michael reached out yo other market l they it to make the pro viable. It also i the j . In some cases, the support it own retail stores for a period time then sell to an operator. I , bike shops and others. The have been operating i i value-add I . He owns fill retail strip centers, and if t right market, there are 1 i not anticipate there 1 issues. The would pre-lease the I ready spoke to different medical facilities. They hope to bring medical facility to the project r it it. Vice Chair Casello commented he liked i it Casello inquired if project I into ii housing. Mr. Michael responded he never owned such a project they I with I leasing lower t . The community will not be gated and they planned to include i ri ty participation. r liked i t because of long-term i i l i issues with various the l i l facility was a significant t to the development the . Residents 1 d walk to their offices. Mr. Ha asked about the maintenance r i 1 explained they handle leasing i i they i t their Delray, Community Meeting Minutes -Bo Beach, Florida Au 18, 2014 Bo and Lake Worth projects. i , and they maintain units it integrity. i target market is i t y active middle-a i C install an elevator because it t the best use of the funds. The I hi l ubhouse for different events and they planned on the amenities i r. Williams explained - i which t I units. If i citizen to live r, they can live on the g round floor. Hinners, explained i t is I y sustainabl a three or four other agencies monitor that their performance in maintenance. mana and , in i reserves with 1 opment set aside at the beginning development replacement of an item, such as a roof, an air conditioner i i landscaping. tax credit I reapply r new tax credits i i development. The price it r Neighborhood i ce would ran from $800 to $1,200. Michael explained the 8% developer fee is i dirt to finished r. Fitzpatrick noted the r million, and when completed, I receive million. If t, he would onl down $300,000. Mr. Michael explained were i i ng the project privatel It would be unusual to not have a fee to cover their costs. Mr. Fitzpatrick there are i i in it inquired if r j ect would offset them. Mr. Michael responded they t . Fitzpatrick i Neighborhood i ssance and noted they ! half the i 1 explained they ran the I I ti want it to i t e project. They have their own equity in 1. The pro vibrant must be i in r them to i i. Mr. Fitzpatrick his disappointment i Murray that this i nt was not raised. Ms. Murray I i information was cont i in the I and the wanted to present the project and staff would scrutinize the i This I d be negotiated if awarded the were I working i . Mr. Fitzpatrick commented the CRA needs that money for other project . Mr. Michael commented there is i involved contributing r project. It was a partnership. Mr. Fitzpatrick without i l , he felt experience, the CRA takes a i. He preferred this j if those funds were included, support the 1. Chair Taylor inquired t the completion Holdings/ Renaissance Nei I d complete the project in s. Chair Commun Meeting Minutes Bo -Beach, Florida Au 18, 2014 Ta y lor r this j r. McCray commented the Neighborhood Renai p r o ject addressed what was requested in i tri II. Mr. McCra read an art icle tl Redeve Ne ighborhood" Re For Loan To Revamp 1 , into r as fo llows: "This time r r Del 1 t A Boa rd i rev the r n Trace Complex t w ith less than a month to commit to lending i not to hand out an mone There is i Membe Annette Gray last Tuesday ni g ht , but we are char w ith i in s time i. Aubu , represented by Mack Bernard said they are pursui $1.4 m illion loan from the Pal Au the r. interested affordable i devel a re t r. Ma C ity i i repayment of the $4.2 million I I. in , the group asked the City renegoti mi llion 1 l restructuring l nett the C ity mi i t, The remaini wou ld amount i t money is it I all other ob ligations r. The deal was approved by a l ame duck comm issi on , but then overturned t ii I s ruled t renego tiations b r law. Redevelopment officials said i the latest request in I leave the City I r l i i ti a r en 't frame, y ou r ng to be able to t decision," said board a ttorney i l . "Loan applica to in r ti frame, not exped ited." Mr. McCra was not in r of the r . Mr. Buchanan cou ld not be present but had submitted i i rev iew r I , which Ms. Brooks read into ll : morn ti responses to the RFP r Ocean Breeze East by Florida Affordabl Ho using 1 proposals. F irst I'd like their first class . I am ver p leased i t qual interested in s cri p ivotal I . In II disclosur I reported before I met w ith r - ti the i wo rking David Katz, now 1 Florida 1 Housi althou noth we spoke of i time i . Fu�ther I reviewed the proposals r i i ons before 1 Meetin Minutes Communit Redevelopment A Board Bo Beach, Florida Au 18, 2014 reviewed the scores of the individuals char with evaluatin proposals. Therefore, m conclusions were not influenced b their scores. For simplicit I g rouped m thou into three cate Desi — the inclusion of the propert ad to the CRA propert so the entire block could be redeveloped is a clear advanta to HH Bo The desi provides more than twice as man livin units. The inclusion of smaII retail and a medical buildin utilizin urban desi with structures next to the sidewalk and interior parkin are important and excitin elements. Financin - HH Bo is lookin at market rate housin instead of g rants and subsidies. The financin is in place while Florida Affordable Housin is uncertain even thou Florida Affordable Housin clearl has expertise in obtainin public fundin In this da and a of diminishin g rants and subsidies, a trend that will probabl continue as decreasin the mass of public debt becomes a necessit a market rate project has the potential to pioneer additional privatel funded projects. Impact — it providin affordable senior housin as Florida Affordable Housin proposed is alwa an admirable g oal, this pro is ke to the future of the Heart of Bo I believe that the lar HH Bo pro with a mixture of residents ran from toddlers to workin people to retirees, and retail medical space will brin much needed vitalit into the area. For these reasons, while Florida Affordable Housin proposaI is excellent, I feel the HH Bo proposal stands head and shoulders above it. Buck." Motion Mr. McCra moved that this RFP/RFQ be awarded to HH Bo LLC. Mr. Ha secondedthe motion. Vice Chair Casello stated on record that whatever compan the vote for, the have to sit at the table and discuss finances. As he alluded earlier, the cannot pa millions of dollars for a piece of land, have it appraised at $535,000, and j ust g ive it awa There has to be somethin g iven in the process. The CRA should ne hard. Attorne Spillias explained the next step for the RFP/RFQ after an award is made, is to ne development a includin all of the financial arran If the do not reach a within 180 da the process starts over. Mr. Merker a and will vote for HH Bo Each presented their wa to finance the project and the reputation of HH B was excellent. 10 meetin Minutes Communit Florida Bo Beach, y Vice y Chair Casello thanked both companies r t i were both I ass-A companies. He hoped the company who did receive r would still take an interest in . The ti _ r. Fitzpatrick dissenting. being Adjournment There i ness before the Board, Chair Taylor at 6:33 . . i Minutes i li 09