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Minutes 10-14-14 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD IN COMMISSION CHAMBERS, CITY HALL, 100 E. BOYNTON BEACH BLVD., BOYNTON BEACH, FLORIDA ON OCTOBER 1, 2014, AT 6:30 P.M. PRESENT: Jerry Taylor, Chair Vivian Brooks, Executive Director Joe Casello, Vice Chair Ken Spillias, Board Counsel Buck Buchanan Michael Fitzpatrick Woodrow Hay Mack McCray David Merker I. Call to Order Chair Taylor called the meeting to order at 6:30 p.m. II. Invocation and Pledge to the Flag Mr. Hay gave the invocation followed by the members reciting the Pledge of Allegiance to the Flag. Ill. Roll Call Roll call established a quorum was present. IV. Legal: None V. Agenda Approval: A. Additions, Deletions, Corrections to the Agenda None. B. Adoption of Agenda Motion Mr. McCray moved to approve. Mr. Merker seconded the motion that unanimously passed. V1. 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 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2014 Chair Taylor disclosed he met with LeCesse months ago. B. Informational Announcements Mr. Merker announced he shot a 40 for nine holes in golf and was shocked. Vice Chair Casello attended a Farm Share food giveaway last Saturday with Representative Lori Berman. He thanked the City of Boynton Beach Utilities Department and Public Works Director Jeff Livergood for their assistance getting the food pallets off the truck. The event had a slow start, but was packed by the end of the day. He noted Mr. Hay had attended and it was great to participate. . Mr. Hay advised he attended the 2014 Annual Florida Redevelopment Association (FRA) Conference in Miami. He was impressed with accelerating urban investments, and he noted Riviera Beach has a City Ambassador program, which helped clean up the City and keep it safe. This program empowers citizens to take pride in their community. He suggested Boynton Beach may want to consider the program. He also noted several City staff members attended the Conference. He encouraged other departments to attend future conferences. Mr. Hay explained next Thursday, a candidate forum will be held at Boynton Beach High School at 4:30 p.m. Candidate discussions will take place about 5 p.m. and at 7 p.m. the Dimensional Harmony Choir will perform. The Choir is trying to raise funds to go to Carnegie Hall. He requested all support the event. He commented the Gubernatorial Debate will be on Wednesday, but the High School Principal advised the candidates may stop by the High School on Thursday to see the Choir. Vivian Brooks, Executive Director, also attended the Florida Council of Public and Private Partnerships Conference with the Finance Director and City Manager. They had a booth displaying the roll out of the Town Square Center plan and developers and financiers were particularly attentive to it. Chair Taylor announced he attended the Florida Council of Public and Private Partnerships and pointed out, in addition to the Finance Director and City Manager, Ms. Brooks, her staff, the Planning Director, Vice Chair Casello and Mr. Merker attended. They made contacts with many developers and their representatives from across the country who were very interested in the Town Square and all of the Downtown. The CRA had the best booth at the event and most attendees were unaware Boynton Beach has a great deal to offer. He looked forward to something occurring as a result. Mr. Merker thanked the citizenry for their input regarding the plan the TRCPC put forward. 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2014 VII. Announcements Awards: A. November CRA Board Meeting will be held on Wednesday, November 12, 2014 due to Veteran's Day Chair Taylor announced the change in meeting date due to the Veteran's Day holiday. B. 3 rd Annual Boynton Beach Haunted Pirate Fest and Mermaid Splash Amy Zimmermann, Boynton Beach CRA Special Events, announced the street entrance on Ocean Avenue was closed and there are roving acts to continue the event down the Avenue. There are family- friendly events such as Kids Buccaneer Village in Dewey Park and two separate interactive ships. A foam archery encampment will be available and dining tents will be at each end of the event with platform stages for entertainment. There is a Facebook page and a website detailing the event including parking areas. There have been inquiries from Pompano Beach and Broward County. Browns Distributors will supply beer from a few local breweries. A live broadcast from WRMF Radio will take place on Saturday. The hours are 11 a.m. to 9 p.m. on October 25, and 11 a.m. to 7 p.m. on Sunday, October 26. Several local businesses are involved in the event. C. Movies in the Park: 10/10/14 — Recap — Mr. Peabody & Sherman 11/7/14 — Maleficent Ms. Zimmermann explained they were extending the Movies in the Park events. The season would last October to June; however, the October event was rained out. She reviewed both movies, and hoped all would attend. The December Movie event would take place on December 12, 2014, to tie into the other holiday events. Future Movies in the Park dates were January 2nd, February 6th, March 6th, April 3th, May 1 and June 5 th , D. Happy Hour Thursday — Music on the Rocks — Funkabilly Playboys Ms. Zimmermann explained this group was invited to perform again this year and the have a good local following. Drinks will be available for purchase. The November 20 concert would feature String Theory, which was rained out last year. Additional concert dates were December 18 January 15 February 19 March 19 April 16 May 21 and June 19 VIII. Consent Agenda: A. Approval of Minutes — CRA Special Board Meeting August 18, 2014 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida Oct 1, 2014 B. Approval of Minutes — CRA Board Meeting, September 9, 2014 C. Approval of Period Ended September 30, 2014 Financial Report D. Monthly Purchase Orders IX. 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. Victor Norfus, 261 Palm Drive, on behalf of the Heart of Boynton Neighborhood Association, announced a fundraiser and remembrance service in honor of past president Gertrude Sullivan. Since her passing, the neighborhood sought ways to honor her and improve the community. This was their first event. Mr. Norfus explained Ms. Sullivan was known as the "Cake Lady" and he reviewed her accomplishments and community contributions. Ms. Sullivan wanted, and advocated for, positive changes in the City and the Heart of Boynton. She had lived in the Heart of Boynton for decades. She fought for businesses in the community and would be remembered as a Christian woman, a loving mother and a community leader. He invited all to the celebration of her life on Saturday, October 25 from 11 a.m. to 5 p.m. at the corner of MLK and Seacrest Boulevards. Food and beverages would be available. Mr. Norfus acknowledged other community activists who had passed such as Lena Rahming- Williams and Reverend Lance Chaney. The event was to continue their legacy. Victoria Castello, 406 S. Seacrest Boulevard, agreed with Mr. Norfus and quoted Harry Gerber. She supported the activity. Chair Taylor closed the Public Comments. XII. Public Hearing: None. III. Old Business: 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 1, 2014 A. Presentation on Business Development Marketing Campaign Tracey Smith- Coffey, Marketing and Business Specialist, commented the CRA started the tag line "Catch Yourself in Boynton Beach ", balanced with a "splash" featuring water to represent the Marina. Staff was attempting to attract a younger demographic to the downtown and to open new businesses. The CRA showcases downtown businesses to build a positive perception of the area. Each month, they feature videos of four local businesses in the CRA district, before the Movies in the Park feature film starts. They also have a raffle of the showcased businesses in the video, which was very popular. Staff created YouTube, Twitter and Facebook accounts. Since the new website was launched, the Haunted Pirates event received 4,331 hits. As of the last CRA Board meeting, there were 2,270 hits, and Movies in the Park had 3,960 hits. The email list continues to grow by about 10 subscribers a week. The CRA has a double -page spread in the Boynton Forum featuring different businesses, under a different theme each month. They also place ads in the Pineapple newspaper, with a circulation of about 20,000. The Boynton Forum has a circulation of about 34,000. Circulation areas are Delray Beach, Boca Raton, Boynton Beach and Lake Worth. Examples of ads from the Boynton Forum were viewed. Ms. Smith -Coffey reported banners for the Pirate Fest were installed along Ocean Avenue and staff was working on another banner campaign for Ocean Avenue and the Marina. She also reviewed the Annual Report and marketing campaigns. The Marina brochure, which contained information about fishing and diving charters, jet ski, boat rentals, restaurants and Marina Bites, was distributed to 33 hotel concierges. Cards detailing local restaurants with addresses and phone numbers were also distributed to hotel guests. The CRA won a first place award for a promotional poster. "Offers and Ads" was contained on Facebook, which featured what local businesses were offering. Visitors click on the ad to learn what their offer was. This created a lot of activity on the Facebook Page and for the featured businesses. The CRA's marketing partnership with Discover the Palm Beaches and Visit Florida was viewed. Ms. Smith -Coffey was working with Communications Manager, Eleanor Krusell, to promote the Marina. Ms. Smith -Coffey was also working with the Business Development Board with businesses looking to open. Grant incentive brochures were viewed. The invitation for the Commercial Brokers event held last year was viewed, as was the follow -up postcards that highlight grants and what the CRA had to offer. Images of additional posters, postcards, email blasts and digital displays on 1 -95 for CRA events were viewed. 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2014 The overall marketing campaign was to create a positive image and build an experience with the events. The CRA wants businesses to locate to the CRA District and have a good atmosphere for existing businesses. Ms. Smith -Coffey explained staff has great ideas for next year. Chair Taylor praised the marketing strategies used. He inquired if the printed materials and flyers or notices were printed in Spanish or Creole and learned they were not. He noted there was a diverse population in Boynton Beach and the Haitian community expressed to him they were unaware of what was occurring in the City. Mr. McCray thanked Ms. Smith -Coffey for a job well done and liked using the billboard. He suggested using it for the Holiday Parade. Mr. Hay commented the CRA missed the deadlines for FRA awards. Ms. Brooks explained the projects would be forwarded for consideration at next year's awards. He pointed out that last year, the Little House won an award. Vice Chair Casello inquired when marketing with the Business Development Board, if the businesses stay within the confines of the CRA District. Ms. Smith -Coffey explained the "Open for Business" section of the web page contained information on land and office locations suitable for businesses. She and Ms. Brooks had also discussed mailing postcards to commercial brokers. Vice Chair Casello inquired if there were any new businesses that resulted from the commercial brokers reception. Ms. Brooks explained the information on available property and the City's processes and turn- around time was helpful. The idea of the reception is to gain exposure. Marketing is a continuous process. It is necessary to attract individuals to the area for brokers to call. A. Consideration of Approval of Executive Director's Employment Agreement for Fiscal Year 14/15 Chair Taylor announced a three percent increase was approved at the last meeting. This document would initiate that payment. Motion Mr. Hay moved to approve. Mr. McCray seconded the motion that unanimously passed. XIV. New Business: A. Consideration of TIF Agreement between Morgan Boynton Beach, LLC and the Boynton Beach CRA for the 500 Ocean Project Ms. Brooks explained staff worked diligently with LeCesse, the developer, who is developing the project under the name Morgan Boynton Beach, LLC for 500 Ocean 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2014 Avenue. The project was heard earlier in the year under a discussion of gap financing. Negotiations ensued and an agreement was received. The project was good for the downtown and encompassed 347 residential units that will contribute to the local economy since residents will not be snowbirds and the project will activate Ocean Avenue. LeCesse, at the request of the CRA, added 6,600 square feet of office space on the second floor. Staff also requested they construct a green building. Ms. Brook's noted the CRA would like the downtown to be known as a green downtown. Tom Hayden, representing LeCesse, 302 Salvador Square, Winter Park, explained this project was the last development to bring the downtown plan to fruition. Morgan Boynton Beach LLC and LeCesse partnered to construct the project. Mr. Hayden provided information on mixed -use and prior projects and introduced Matt Zerkelbach, Consultant for the green development. Matt Zerkelback, Grumbrook Green Builders, West Palm Beach, explained they constructed many projects throughout the State, and his firm certified a variety of green projects. He reviewed a PowerPoint, reflecting there are six levels of green building practices, and they will construct the building to the National Green Building Standards. The rating matrix was reviewed as contained in the PowerPoint presentation included in the meeting materials. The project will have energy efficiencies to reduce heat gain, have HVAC and duct systems - operating efficiently, address water conservation, waste management, stormwater run -off, and many more elements including efficiencies in the lot design, preparation and development of the project. There will be operations and maintenance education to ensure the homeowners and maintenance staff would know how to operate a green building. He explained the project work will be third party verified through an independent party, and it will meet a rigorous standard. There will be energy efficient windows, recycled content block on structural foundations and walls. Framing, the roof and forms, would minimize waste, and tankless hot water systems will be used. Mr. Zerkelback explained when the project is certified, inspectors will look at the individual units. The units will be 38% more energy efficient than a standard home. The economic importance of the project reflected residents, collectively, over a 10 -year period, would save $654,720 in utility bills, 308 metric tons of carbon emissions, and 38.5 million gallons of water. The energy efficiencies will complement the City's Climate Action Plan. Mr. McCray inquired about the definition of O &M under the National Green Building Standards. Mr. Buchanan asked about the roof insulation which may be icynene, but it most likely will be a rigid back R21 insulation. There would be also be insulation on the CME block walls. This would reduce heat gain and loss. 7 Meeting Minutes Community Redevelopment Agency Board Boynton, Beach, Florida October 14, 2014 Mr. Fitzpatrick inquired about the National Green Building Standards. Mr. Zerkelback responded the standards were from Home Innovation Labs, an organization similar to the U.S. Green Building Council. It is more widely used in South Florida and it was the only consensus Green Building Standard that was approved by the American Standards Institute. It is similar to LEER, is very rigorous and requires each unit be individually verified. Had the project been LEED scored, Mr. Zerkelback explained it would be at the Silver level, if not better. John Flynn, LeCesse Development, 650 S. Northlake Boulevard, Altamonte Springs, discussed economics and markets. An additional slide presentation discussed rents and demographics in Boynton Beach compared to Boca and Delray Beach. This was part of the reason why LeCesse wanted to work with the CRA and request the Tax Increment Financing (TIF). He noted there was a rental gap between Boynton Beach and Delray and Boca Raton. Mr. Merker queried Mr. Flynn whether the construction was required by law or was it their initiative to add the additional features and learned green building enhances marketing. When residents understand they save 18% on their electric and water bills, it enhances the product over the long -term. Ms. Brooks had indicated how important it was that Boynton Beach take the lead on a green project. Everything that was done was above what was required by Code. Vice Chair Casello noted the building was originally perceived as a standard construction and not a green building. While it was not green in the strictest sense, elements of the building were energy efficient. Vice Chair Casello commended Mr. Hayden on the building. Mr. Buchanan asked if the colors on the artists renderings were an accurate representation of the colors, and learned the developer worked with Ms. Brooks on the palate. Messrs. McCray and Hay asked about the third party verification. Mr. Zerkelback explained the company they use has verified over 500K square feet of green building in Florida. They worked with them on other projects in the past in Miami and Kendall, which he reviewed. Chair Taylor opened the Public Comments. Victoria Castello, 306 S. Seacrest Boulevard, explained the Promenade and Las Ventanas were not pedestrian friendly. Delray Beach had similar buildings, but pedestrians were able to walk around inside. She hoped this would be addressed. Chair Taylor commented that issue would be reviewed at the time of site plan review. Chair Taylor pointed out he had been waiting a long time for this development to occur and the project would be a catalyst in Boynton Beach. It would show that something was finally occurring downtown. He asked when the project would commence with 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2014 vertical construction and learned the developers planned to construct the project in the spring. Vice Chair Casello inquired if the CRA approved the project, if Mr. Hayden would guarantee he would remain with the project until it was finished. His concern was the project would be packaged and flipped to another developer. Mr. Hayden explained they are in the business of developing communities. He planned to remain with the project until completion. Mr. Merker thought Vice Chair Casello's comment should be part of the agreement. Ms. Brook's explained there was no agreement on the agenda. The item was agendaed for direction to move forward. She suggested the CRA require Morgan Boynton Beach, LLC to stay in the same ownership until a Certificate of Occupancy is issued. It could be a condition of approval for the TIF funds. If they broke ground in the spring, completion would be approximately 18 months later. Mr. Hayden suggested the agreement be signed when the construction loan was signed, since the timing of the transaction would give assurances they would stay until the end. Mr. McCray requested Legal provide guidance on how to form the motion. Chair Taylor clarified, if they approve the TIF agreement, the motion would be to tie it to the signing and become effective at the closing of the construction loan. Motion Mr. Hay so moved, Mr. McCray seconded the motion. Mr. Fitzpatrick commented CRA staff sent a list of required documents to the developer and understood most of the requested documents were not received. He read the list and asked why. It was learned the operating and development proformas were received. They were working towards a construction loan commitment letter. Ms. Brooks explained the CRA would not enter into an agreement until the loan closed. Proof of equity letter, which was the amount the partners were funding was not received. Mr. Hayden explained that type of information is not generally disclosed, but they would disclose it before closing. Ms. Brooks explained if Morgan Boynton Beach LLC did not get the construction loan they would not get the TIF. The partners had the real estate contract and would produce it to Ms. Brooks. The market study was also emailed to Ms. Brooks. Mr. Fitzpatrick commented he was new on the Board and some business owners thought approaching the CRA was a way to get extra funding. He commented he did not see any hard evidence the developer needed TIF funding. Chair Taylor, however, 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2014 pointed out TIF funding was used with Seaborne Cove and Casa Costa and a chart was included with the meeting materials showing why they needed gap funding. Vice Chair Casello inquired if Ms. Brooks was comfortable with the motion and taking the next step and learned she was. Mr. Buchanan if the Direct Incentive Financing Agreement being executed simultaneously with the close of the construction loan, if the recommendations regarding the LLC not changing ownership until the project received a Certificate of Occupancy, and that no major modifications to the project be made prior to CRA approval was in the motion. Ms. Brooks explained those were her recommendations, but they were not in the motion. Motion Mr. Buchanan moved to make a substitute motion that also included his last two points. Attorney Spillias explained except for the questions Mr. Fitzpatrick raised, and if those were elements they wanted to see before executing the document, they should be included. Mr. Fitzpatrick reiterated Ms. Brooks had to wait for documents, and receiving those documents should be included in the motion. Chair Taylor understood the documents would be provided. Mr. Fitzpatrick emphasized the next developer should understand the documents have to be provided. He also inquired if TIF funding would be reduced if the millage was reduced, and learned it would. Ms. Brooks explained when the process started, it was assumed the TIF agreement would be entered into earlier. In this instance, the bank indicated the development team was bankable and the project was marketable. At the request of the CRA, the developer had provided items they did not want to provide initially for the benefit of the public. One of the items was office space, which likely would not be occupied immediately. They had not considered incorporating green elements, but did because CRA staff.requested they do so. The project was basically a public - private partnership. The way to guarantee the CRA would not be stranded was to not sign any documents until Morgan Boynton Beach LLC executed theirs. Vice Chair Casello inquired if a motion was needed to include the three items in the TIF Agreement. Ms. Brooks explained staff would bring the Agreement to the Board in the future. Mr. Fitzpatrick did not feel Morgan Boynton Beach LLC made a case they needed the funding. Ms. Brooks responded she was comfortable they needed the funds because rents would not be received immediately and construction costs were high because of 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2014 the demand for contractors. The funding was stacked $75K for the first four years and then it decreased as reflected in the meeting materials. Vote The motion unanimously passed. B. Consideration of Entering into an Exclusive Listing Agreement with the Firm of Prakas & Co. for the CRA Owned Property at 480 E. Ocean Avenue Ms. Brooks explained this unique, CRA -owned property is a historic property that is not on a major thoroughfare. There is a grease trap inside the building, but no hood. Staff had issued two RFPs and only received two responses each time. She did not think two responses were representative of the broader range and type of business that could be located there. Putting a sign on the property would not accomplish anything and having ads in different publications was not reaching the core group needed. Mr. Prakas has done a lot of work in Palm Beach County and Delray Beach with restaurants and bars. He purchased a liquor license on South Federal Highway which enabled the strip club to be removed from the City. The CRA has worked with Mr. Prakas in the past and was confident he could find tenants for both properties. The listings would be for 90 days, concurrent with the RFPs. The properties were key properties and Ms. Brooks noted there was not a lot of retail space on Ocean Avenue. Therefore, it was important to have the right concept and operators. Using a professional in this instance was worth the money as restaurants were not something staff was familiar with. As to the fee, there is a flat fee of $10K. If there is no concept that is financially viable, no payment would be made. Chair Taylor expressed concern if Mr. Prakas brings in someone and the CRA does not like the concept. Ms. Brooks responded a list of items that would not be acceptable should be included in the listing agreement. Mike Simon, Assistant Director, explained it is within an owner's right to determine a realtor is not entitled to any compensation or commission if the owner does not agree with a prospective tenant or sign a document. A fee is not generated by bringing someone to the table and leaving the deal. Vice Chair Casello read the language in the document and stated the agreement was terrible. Mr. Simon explained a consultant's agreement could be negotiated and every agreement has elements that are very commonly negotiated. 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2014 Ms. Brooks explained Exhibit A had to be completed and would indicate what would be included or excluded. Mr. Merker agreed this was a specialty area, and the CRA should define what it wants and does not want. A time frame has to be specified. Mr. Fitzpatrick noted the contract provided was Mr. Prakas' contract and inquired if the CRA writes its own contract. Ms. Brooks explained the document was Mr. Prakas' contract and it could be changed. She had already removed a lot from it. Mr. Buchanan favored using a consultant. The individual would bring a proposal to Mr. Prakas as their contact. Under the RFP, the cone of silence would apply to staff and the Board. Mr. Buchanan commented if the CRA wants a restaurant, and a restaurateur is brought before the Board and sells one product, the way the agreement was written, the CRA would have to accept the tenant Mr. Prakas brought forth and Mr. Prakas would receive a Commission. Mr. Spillias clarified the way the documents are set up, there was no connection between the RFP and the consultant's agreement, although it was anticipated Mr. Prakas would assist the CRA in the RFP process. It should be tied together. Mr. Prakas knows individuals he could encourage through the RFP, but the CRA would make the ultimate decision. If Mr. Prakas does so, there is nothing wrong with having an agreement that he would receive a commission. However, Attorney Spillias commented a 30 -day letter may not be sufficient due to having to provide notice. When the RFP is issued, interested parties have to go through Mr. Prakas. Mr. Prakas would also make the presentations and the rankings. Tom Prakas, President and Broker of Prakas & Co., understood the Board's concerns. He explained if he brings someone to the Board during the 30 -day period, he would be paid. He was amenable if the length of the agreement was changed too. His firm has brokered or leased /sold over 450 restaurants over the last 12 years and he would like to bring his firm to Boynton Beach and lease or sell properties for the Board. Ms. Brooks can convey the Board's concerns and terms to him and he did not anticipate any issues as long as the terms and concerns were realistic. He had already reduced his commission. His firm added 30 of the 36 restaurants in Delray Beach. He was agreeable to just bringing bars or restaurants and would not force anyone into entering into a lease. Mary Louis, Boynton Beach, attended the meeting to present a restaurant business. She has .a business established for 18 years in Lantana. On the advice of Attorney Spillias, presentations should not be discussed until the RFP was issued. Mr. Fitzpatrick inquired about the status of the Little House and learned it was vacant and not free and clear of lease issues. 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2014 Emily Rollins, 519 NW 8th Avenue, was very familiar with the business and commented it was important to place someone at the location that can succeed. She suggested having a consulting fee with Mr. Prakas for one or two years. She had no relationship with Mr. Prakas. Victoria Castello explained she was a licensed real estate broker, and she wanted the Little House to succeed. She paid the rent for Ms. Benoit for October which was deposited as rent. Ms. Castello's attorney was out of town and she inquired if Ms. Benoit was in default. Attorney Spillias explained she was in default and had a few days to cure the matter. The premises were vacant and she removed items from the premises which was not permitted. Renovations without the CRA's permission are not allowed. Ms. Benoit was notified by letter and could respond. Additionally, Ms. Benoit had sent a letter indicating she was vacating. Ms. Castello explained she was a taxpayer and the CRA was signing the property as an exclusive listing. She inquired if the property was in default. Ms. Castello contended it was not. Attorney Spillias clarified she was in default for different reasons, and non - payment of rent was not one of them. Vice Chair Casello inquired why staff would accept a check from a third party. Attorney Spillias explained a check coming from a third party is of no issue as anyone can pay someone's rent. The letter from Ms. Benoit initially made it clear she was leaving at the end of September. At that point in time, it could be construed as anticipatory breach of the contract, which means the individual states they are not moving forward with the contract. Then the rent check was tendered. An email was received from Ms. Benoit indicating the rent was for September. The CRA then learned Ms. Benoit removed items from the facility, the doors were locked, and it was not run as a restaurant. All those items were a breach of contract. At that point, the CRA declared a breach, and Ms. Benoit was given a certain amount of time to cure the breach, which was by October 21, 2014. On that date, the fixtures were to be put back in, the restaurant be operational and the rent and insurance be current. Otherwise, it is a default that has not been cured and the CRA souls terminate the lease. Vice Chair Casello inquired how to proceed. Attorney Spillias suggested, based on the discussion regarding the RFP and Mr. Prakas contract being tied together, that the matter be deferred. The rent check will not be returned to Ms. Castello. Mr. Buchanan did not think a motion was needed and thought staff should be given direction to move forward to develop an agreement the Board would approve that tied together the RFP and contract. 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2014 Motion Vice Chair Casello moved to defer the item until they come up with the verifications that are tied to the RFP. Mr. Hay seconded the motion. Mr. Hay spoke about an issue that surfaced at the FRA conference regarding the RFP responses. The CRA has not had a good response to the RFP, and at a meeting, a comment was made the infrastructure was not in place. He requested Mr. Simon explain why developers were not considering the CRA as seriously as they should. Mr. Simon explained the development community felt RFPs written by cities and CRAs were not inviting enough to actual and legitimate developers because of the conditions and the amount of money that is spent putting the response together, only to learn the Board is not interested in a project after they have spent a lot of money on a response. This has occurred with CRA properties in the past. He requested the Board remember there were RFPs they issued before that nothing occurred thereafter. The concern from the public that the CRA is bringing in a commercial entity to review and be a part of this was evidence there should be a third party involved in the process. With the Little House, it appeared the CRA has been pitted against Ms. Benoit; however, the CRA supported Ms. Benoit for many years with free rent and other items. They had a great relationship with her and worked together to build the restaurant. Ms. Benoit terminated her lease on her own. She was in the paper describing the fact she is on a new adventure, and these were not things that were initiated by the CRA. Asking her to leave was not part of the CRA's plan and, in fact, staff worked very hard to keep her successful. Mr. Simon commented there are other elements the CRA could address in the RFP that will be more beneficial. Chair Taylor expressed his concern there will be a vacant property. He thought there was something that could be worked out and requested the CRA do so as quickly as possible. Ms. Brooks suggested having a special CRA meeting. Mr. McCray expressed his confidence in Ms. Brooks and Board Counsel, but thought these issues should be worked out before the agreement comes to the Board. Mr. Merker agreed with the Chair and thought in light of the letter received from Ms. Benoit, she broke the lease. Chair Taylor requested the CRA review the 30 -day letter in addition to the RFP. There was a vote on the motion to defer the item which passed unanimously. 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 1, 2014 The following items were deferred: C. Consideration of Entering into an Exclusive Listing Agreement with the Firm of Prakas & Co. for the CRA Owned Property at 211 E. Ocean Avenue D. Consideration of Issuing a Request for Proposals for CRA Owned Property at 480 E. Ocean Avenue E. Consideration of Issuing a Request for Proposals for CRA Owned Property at 211 E. Ocean Avenue V. Future Agenda Items: None. VI. Adjournment There being no further business to discuss, Chair Taylor adjourned the meeting at 8:38 p.m. aWV A P Catherine Cherry Minutes Specialist 141022 15