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Minutes 11-12-14 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD IN COMMISSION CHAMBERS, CITY HALL, 100 E. BOYNTON EACH BLVD., BOYNTON BEACH, FLORIDA ON NOVEMBER 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 1. 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. Vice Chair Casello led the members in 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. VI. Informational Items and Disclosures by Board Members and CRA Staff: A. Disclosure of Conflicts, Contacts and Relationships for Item presented to the CRA Board on Agenda Items Present Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL November 12, 2014 B. Informational Announcements Chair Taylor and Messrs. McCray, Buchanan, Hay and Fitzpatrick had no disclosures or conflicts. Mr. Merker attended the Veterans Day Ceremony. He pointed out the Mayor spoke eloquently at the ceremony. Vice Chair Casello agreed the Veterans Day ceremony was impressive and as was the Boy Scouts' recognition of the sacrifices made by our men and women in the armed forces. Vice Chair Casello announced Saturday was the Chamber of Commerce Harvest Fest at Intracoastal. This year, he hoped for good weather and for it to be a success. Vice Chair Casello requested the Board address Business Tax Receipts at Casa Costa. There are 90 units designated as hotel suites. Ms. Brooks agreed to contact Development Director Nancy Byrne, who was working with them on the matter. In his discussions with the City, Casa Costa has not paid for a Business Tax Receipt for the last five years. He inquired about the storefronts and noted the CRA has provided about $485,000 a year to Casa Costa for the last five years. One stipulation was the storefronts would be offered below fair market value. He commented not one unit has been rented and there are many units empty. He requested documentation for the next agenda, to see what was done to earn the $485,000. Mr. Hay agreed with prior comments made. To draw attention to the need for prostate cancer testing, Mr. Hay urged others to allow their facial hair to grow as he had. He noted African-American men, in particular, tend to not get tested Ms. Brooks disclosed she met with David Camalier two weeks ago and she will meet with him and his attorney, regarding development of the downtown. Mr. McCray noted Mr. Hay attended chaplain's training. Mr. Hay explained it was a worthwhile workshop. He learned how to handle death notices, hospitalizations and other issues. He is now a certified chaplain for the Boynton Beach Police Department. The members congratulated him on his accomplishment. VII. Announcements & Awards: A. Recap of 3 rd Annual Boynton Beach Haunted Pirate Fest and Mermaid Splash Amy Zimmermann, Special Events Coordinator, announced they had a great event. She thanked the City for their partnership. The event drew great accolades on social media from emails, vendors and entertainers, and concessionaires reported double 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL November 12, 2014 sales. They estimated attendance to be about 15,000 people over two days. They also received great feedback for next year's event. She was grateful the Board attended. This year staff used a survey to gain useful information to measure the economic impact which could help secure sponsorships for next year. Ms. Zimmermann advised 74% of the event goers attended for the first time so they reached the target demographics and some event goers attended both days. The event drew people from Broward, Loxahatchee and other far reaching areas. The on -site survey results showed attendees planned to visit local businesses, such as restaurants, bars and retail establishments before or after the event and 36% of them planned to spend between $31 and $50 at local businesses, resulting in at least a $270K impact. The CRA secured a beer distributor and chose the Schoolhouse Children's Museum to be the recipient of the sales which resulted in a $4,000 donation to the Schoolhouse Children's Museum. Many businesses on the east end of Ocean Avenue reported sales, and restaurant sales increased 25% from last year. Next year, Ms. Zimmermann was considering the event have the same start-to -end time for both days from one street to the other. Mr. Merker complimented Ms. Zimmermann. Mr. Fitzpatrick agreed it was a job well done. Ms. Zimmermann explained she went to three pirate events throughout Florida that were not as kid friendly. The parent feedback she received for this event was it was a great family event. She was thinking of having a Friday night Pirates Ball with a more adult theme. Next year, the event will have something for everyone and she sought to make this a Florida event. B. Movies in the Park Ms. Zimmermann announced this viewing of Maleficent had the second largest turnout and the weather was perfect. Food vendors were on site and she noted the event may be outgrowing the park. C. Happy Hour Thursday — Music on the Rocks Quarter Life will be featured at the next Music on the Rocks event on the 20th. They are a local band with a good following. Local vendors Maui Wowie and Kettle Corn would be on site. Chair Taylor advised a local businessman with a band volunteered to perform the first time for free. Chair Taylor agreed to provide the contact information. D. Holiday Tree Lighting and Concert The Holiday Tree would be erected in front of the Schoolhouse Children's Museum. There would be white lights on the trees surrounding the museum and on the border of 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL November 12, 2014 all the structures. The sign will also be lit. The tree will be four feet higher due to it being on a four -foot riser. The lighting and concert will take place on Friday, December 5 and the City was holding the parade on Saturday. Local vendors and concessionaires will be present and the local school choir will perform before the Tree Lighting. A concert featuring Wonderama will occur after the Tree Lighting. Santa will be present and his Santa's Wonderland would be on stage. VIII. Consent Agenda: A. Approval of Minutes — CRA Board Meeting, October 14, 2014 B. Approval of Period Ended October 31, 2014 Financial Report C. Monthly Purchase Orders D. Approval of Commercial Facade Grant to JSG 2403, LLC (Sunoco Station Golf & Federal Hwy.) I. Pulled Consent Agenda Items: None. X. Information Only: A. Public Comment Log - None B. CRA Development Project Update: Boynton Harbor Marina Harbor Master Building Project C. CRA Development Project Update: Parking Lot Project on NE 1st Ave. & NE 1st Street and & Sidewalk Connector located at 208 NE 1st Avenue D. Business Development Advertising Campaign I. Public Comments: (Note: comments are limited to 3 minutes in duration) Victoria Castello, 406 S. Seacrest, noted the discussion in the minutes regarding Ms. Castello paying the rent for one month on behalf of Ms. Benoit. The check was deposited and would not be refunded. Ms. Castello wanted to point out that she had not asked for the rent to be returned. Chair Taylor requested moving New Business Item E up on the agenda. Motion Vice Chair Casello so moved. Mr. Merker seconded the motion that unanimously passed. 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL November 1, 2014 II. Public Hearing: III. Old Business: None IV. New Business: E. Consideration of Changing the Date for the Holiday Boat Parade for 2014 (Heard out of order) Ms. Brooks explained the date for the Boat Parade was changed during the budget workshop. At the Captain's Award Luncheon last year, the captains suggested to Ms. Zimmermann the parade be held on a Saturday because they did not have time on Friday to get home, decorate their boats and have their friends and family on board. Ms. Zimmermann polled them again on Monday and they still preferred Saturday. Chair Taylor commented the Boat Parade had always been held on a Friday. He pointed out that many boat captains participating in the parade on Friday then went to Ft. Lauderdale on Saturday. Delray Beach also has their Christmas parade on Saturday and they requested the parade remain on Friday to avoid a conflict. There was a concern about the parade, the CRA boundaries and a possible conflict with the laws governing CRAs. Staff had been in contact with Delray Beach since September to see if they would contribute to it to avoid conflicts with the governing laws, but due to turnover in the Delray Beach City government, CRA staff could not find anyone to respond. Chair Taylor explained the matter to Mr. Reeve Bright who held the parade in the past and Mr. Bright agreed to secure funding so Boynton Beach could hold the Parade within the legal guidelines for CRAs. He further agreed to inquire if Delray Beach staff or Police could help with the bridge openings. Chair Taylor suggested keeping the parade the same as it has been in the past and making the change next year. Mr. Merker contended the only issue was what was better for Boynton Beach. He thought if the CRA liked Saturday, then the Board should hold it on Saturday. Chair Taylor recognized Mr. Merker's comments, but pointed out it was important the two cities work together. Mr. McCray understood Mr. Merker's comments and pointed out the two cities always worked closely and they need to continue. He suggested hearing both arguments and then making a decision. Reeve Bright, 700 Seasae Drive, explained the Boat Parade was originally started by the Coast Guard Auxiliary and for the first five or six years was run by them. Laws were passed on the federal level, the Coast Guard could not sponsor Boat Parades because they did not have insurance. At that time, the Parade was the Delray /Boynton Holiday 5 Meeting Minutes Community Redevelopment Agency Board - Boynton Beach, FL November 12, 2014 N Parade starting from the Boynton Inlet to the C -15 canal. Mr. Bright went to the Kiwanis Club and the Mayor, and the Kiwanis Club had a blanket insurance policy that allowed them to sponsor the parade. Mr. Bright was the Parade Chairman for over 30 years. For most of that time, Mr. Bright ran the parade with help from volunteers from Boynton Beach. After that, another individual got involved with the event. Mr. Bright advised he would raise private funds to donate to the CRA to offset some of the expenses. He noted with the right permits, the Police Department had always manned the bridges for free. He requested holding the Parade on the 12 a Friday night, and holding it the night before the Boca Raton parade on Saturday next year. He pointed out the boat parade has been a community event in these two towns for 40 years and he did not want to see a scheduling snafu. Ms. Zimmermann explained the captains were aware the parade would be held on a Friday and would be held the same way, extending to the C -15 canal. As long as funds were raised and the event was a partnership, the event expenditure was within the CRA's guidelines. Further dialogue followed that it was not a big plus for the boat parade to start at 6:30 when most people could barely get home from work. In Delray Beach, there was no real interest in having the parade go down that far. It was thought to be a legally defensible CRA activity, Delray Beach would have to make the parade a legitimate partnership Ken Spillias, CRA Board Counsel, did not think there was a formula that would give the precise donation amount needed, but did think, based on the overall nature of the program, the donation would have to be a proportional amount. The members discussed the importance of being a good neighbor. The total cost was between $3,000 and $5,000. The CRA budgeted $12,000, including advertising and marketing, which was not done in the past. Due to the turnover in Delray Beach government, Boynton Beach could get together with Delray Beach leaders next year and discuss a partnership event that was mutually beneficial. It was important for the event to have continuity. Most members believed holding the event this year on the Friday was sufficient and agreed they should approach Delray Beach to work on a Saturday event next year. A suggestion was also made to change the start of the boat parade from 6:30 p.m. to 7 p.m. Mr. Merker thought change was healthy if it resulted in improvement. He contended if it was better for Boynton Beach to have the parade on Saturday, then it should be on Saturday. Ms. Brooks also advised Saturday was better for residents, the captains, and the parade would cover a greater area. Chair Taylor thought it would not be a big difference to residents. 6 Meeting Minutes Community Redevelopment Agency Board Boynton B each, FL November 12, 2014 Motion Mr. Hay moved to keep the boat parade on Friday with the normal route. Mr. Bright would do what he can to raise funds and next year will go to negotiations. Mr. Fitzpatrick seconded the motion Mr. Buchanan commented the event requires effort, lots of manpower and money. He agreed the boat parade would be better on Saturday, and he and Vice Chair Casello wanted a stipulation the funding would be in place included in the motion, so they would not violate the law. It had to be a legitimate partnership. Attorney Spillias explained the portion of funding the CRA could legally expend was the CRA servicing the program within the CRA boundaries, and using products and marketing that are directed to the CRA and its residents. He also noted the marketing was something that goes beyond the boundaries of the CRA, so if funding was provided as part of that partnership, there was a joint operation. The fact that boats go to Delray Beach was not a violation. Any money they receive would be spent in Boynton. Mr. Merker commented if Delray Beach was having issues, it was not Boynton's problem and he reiterated having the parade on Saturday was what was best for Boynton Beach residents. Discussion ensued that for years Delray Beach generated the boat parade and the City was a recipient without contributing anything. Now that situation will be corrected. Mr. McCray inquired who would control the event if the boats did not go to Delray Beach. Attorney Spillias explained, as the information is presented and the planning goes forward, he could advise what expenditures were appropriate. Chair Taylor explained the captains compete for prizes and the City sets the route. Mr. Bright explained the Coast Guard kept a boat at the C -15 canal and to win a prize, the captains had to go around the boat so all got to see the parade. Vote The motion passed 5 -2 (Messrs. McCray and Merker dissenting.) A. Consideration of Entering into an Exclusive Listing Agreement with the Firm of Prakas & Co. for the CRA Owned Property at 480 E. Ocean Avenue — Deferred 10/14/14 Ms. Brooks explained this item contained changes the Board wanted. The Board wanted a reduction in minimum commission from $10K to $51K, and Mr. Prakas' right to a commission on a sale or lease changed from one year to six months after he showed the property. Exhibit A changed the terms of the agreement. They removed the Request For Proposal and listed the required documents the interested party would 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL November 12, 2014 provide to Prakas & Company. The changes were sent to Mr. Prakas, who was unable to attend. Ms. Brooks explained there were two ways to dispose of property within a CRA which is by either using the RFP process or a 30 -day notice to dispose. Staff recommended replacing the RFP process and then when the Board has potential businesses for each property, staff would issue a 30 -day notice to dispose of property which was done for the Family Dollar store. Exhibit A listed the types of businesses the CRA wants and does not want. Motion Mr. Merker moved to table this until Mr. Prakas was present so the Board can ask questions. Ms. Brooks explained she could make a recommendation, but the longer they wait, the longer the properties are vacant. Mr. Merker felt the person should be present and believed that was why the matter was postponed. He did not agree Ms. Brooks should present the item for Mr. Prakas and thought it was unprofessional. Ms. Brooks commented the Board indicated what they wanted and Mr. Prakas agreed to the changes when he was present. The motion died for lack of a second. Chair Taylor noted the document says the commission on the rental would be five percent of the basic lease amount of the initial phase or $5,000, whichever is greater. Later in the document it states sales commission shall be due and payable at the consummation of the sales transaction, except as otherwise provided in this agreement. The minimum commission payable to the broker was $10,000. Ms. Brooks explained they only changed the sales commission and not the "lease" commission because a lease would be a lot lower than a sale. Mike Simon, Assistant Director, explained Mr. Prakas did not suggest adjusting the sales commission. The concern was the $10,000 minimum seemed excessive if the amount of the lease was low. A five or six percent commission on a lease of $1,000 a month was low compared to a sales price. He explained receiving $60,000 on a five - year lease is a $3,500 commission or $5,000, whichever is greater. The chances of negotiating a more favorable lease rate for a tenant would exclude Mr. Prakas from potentially earning a fee for a three -year lease or three -year paid lease. In a sale, there is much more work and the potential for a fee should be higher. Typically, commercial brokerage commissions would be double the amount the Board wants to pay. If the Board sells the property, Mr. Prakas would broker the sale. Six percent, while negotiable, seemed reasonable under the conditions. If a sale, Mr. Prakas would receive a percentage. 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL November 12, 2014 The list of businesses that were desirable and undesirable was discussed. Vice Chair Casello thought the Board should be open to receive as many ideas as possible and he was seeking to expand the list of criteria as a submittal and not as a concept. The additional items would broaden who Mr. Prakas would provide as a potential respondent. Vice Chair Casello did not want the criteria so rigid someone other than a restaurant or bar could not apply. Mr. Merker felt an individual who works on a commission basis should be in front of the client to answer questions. He agreed the matter should not be delayed, but expressed if Mr. Prakas was not present, he did not care. Ms. Brooks explained the reason for Mr. Prakas' absence. Mr. Buchanan explained the Board was giving a highly experienced person in the restaurant business, the opportunity to bring potential clients to the CRA. Those not feasible will be filtered out. Once past that, the CRA will determine who would be a tenant or buyer. If anything, the CRA owes Mr. Prakas nothing if they turn down all he brings and the CRA is not obligated to select someone he brings. He favored moving forward as soon as possible. It was clarified if Mr. Prakas brought a viable owner or renter the Board did not like, he would not be paid. Vice Chair Casello inquired if the five items provided to parties interested in leasing or purchasing was a guideline. Mr. Simon clarified if an interested party did not meet one of the five items, it would be considered incomplete. He inquired if the Board wanted to add or detract items. Staff did not offer language on how to expand the documentation of prior ownership of a restaurant, bar or other successful business. Chair Taylor agreed it would be beneficial to be receptive to any kind of great idea that would be dynamic and create foot traffic. Ms. Brooks suggested removing "type of business ", "desired hours of operation" and "proof of current ownership" and leave the rest of Exhibit A. Mr. Merker inquired with the new wording, if Vice Chair Casello meant another form of business aside from a restaurant or bar, and noted if so, that was not Mr. Prakas' expertise. Mr. Buchanan suggested sticking with a restaurant and bar concept which drives early successes. It was important to get people there to eat and drink. He noted there are very few retail businesses that generate foot traffic. Ms. Brooks explained the goal would be to create the most foot traffic. She explained 480 E. Ocean was already built out as a restaurant and has a big cooler. The former Little House could have a cooktop and hood. It was just a matter what the Board wants to see on Ocean Avenue. Attorney Spillias explained one reason staff recommended this methodology rather than the RFP was to use a realtor that is a renowned expert in restaurants that will go out and try to find a restaurant that will meet the Board's criteria. If he cannot, the Board will know it cannot be done for these two buildings. It gives more flexibility. 9 Meeting Minutes Community Redevelopment Agency Board B oynton Beach, FL November 12, 2014 Motion Mr. Buchanan moved to enter into an exclusive listing agreement with the firm of Prakas & Company for the CRA owned property at 480 E. Ocean Avenue. Mr. McCray seconded the motion. Vice Chair Casello wanted it noted the bullet points were flexible. Mr. Simon clarified there was a slight change in verbiage from sole type to type of business. Businesses that are not bars or restaurants would be excluded. Mr. Buchanan explained the agreement with the bullet points was somewhat rigorous. If it did not work out or meet the criteria, the Board could revisit it. If someone met the criteria, there was a better chance they would be successful. He wanted to move forward with the agreement as it was written. He noted Mr. Prakas was successful in this arena, it would speed up development, and it could always be revisited. Mr. Merker emphasized he was not against a broker, but was against a person who runs a business that is not present to answer questions and he would vote in opposition. Vice Chair Casello restated if using the five bullet points, its rigidness will restrict the number of applicants and waste the six months for Mr. Prakas. He favored opening it up and making if flexible. He was against the motion. Vote The motion passed 5 -2, (Vice Chair Casello and Mr. Merker dissenting.) B. Consideration of Entering into an Exclusive Listing Agreement with the Firm of Prakas & Co. for the CRA Owned Property at 211 E. Ocean Avenue — Deferred 10/14/14 Motion Mr. Buchanan moved to approve. Mr. McCray seconded the motion. Ms. Brooks suggested in reference to Vice Chair Casello's prior comments that they change the language in Exhibit A, "Sole type of business" to "Desired type of business ", so they could consider other types of businesses; leaving "Desired Days of Operation "; and adding language for "Proof of current or prior ownership being proposed" referencing management or other type of business, so they would not bar someone with a start -up. The property was a blank slate and uses for the building were more flexible. Motion Vice Chair Casello so moved. Mr. Hay seconded the motion. 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL November 12, 2014 As there was a motion on the floor, Mr. Buchanan offered a substitute motion with the changes as previously stated. Mr. McCray seconded the motion. Mr. Merker received confirmation Mr. Prakas would be handling this item Vote The motion passed 6-1, (Mr. Merker dissenting.) C. Consideration of Issuing a Request for Proposals for CRA Owned Property at 480 E. Ocean Avenue — Deferred 10/14/14 Staff recommended withdrawing this item in favor of the prior two items Motion Mr. Buchanan so moved. Mr. McCray seconded the motion that unanimously passed. D. Consideration of Issuing a Request for Proposals for CRA Owned Property at 211 E. Ocean Avenue — Deferred 10/14/14 Staff recommended this item be withdrawn. Motion Mr. Buchanan so moved. Mr. Hay seconded the motion that unanimously passed. F Phase I Ocean Ave. District Banner Project & Phase 11 Marina District Banner Project Mr. Brooks commented new banners will be installed down Boynton Beach Boulevard, Ocean Avenue and the Marina. They are replaced every few years and were part of the Downtown and Marina District Marketing Campaign. No action was needed on this item. G. Consideration of Resolution No. 14-07 Supporting the County's Continued Membership in Treasure Coast Regional Planning Council Chair Taylor advised he attends the League of Cities meetings and they were unanimous in remaining with the Treasure Coast Regional Planning Council (TCRPC), but the County was trying to use a new Planning Council. The CRA wanted to maintain the status quo. A resolution in support of the TCRPC was needed. Motion Mr. McCray so moved. Mr. Merker seconded the motion. 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FL November 12, 2014 Vice Chair Casello was unfamiliar with the South Florida Regional Planning Council. He inquired about the pros and cons and why the County wanted to use them. Ms. Brooks explained the TCRPC was geared towards slower growth and Palm Beach County was getting larger. The CRA has had great service with the TCRPC and she thought it would be a lot harder to get service with the South Florida Council. Additionally, the TCRPC was involved with ongoing CRA projects. Vote The motion unanimously passed. Mr. Fitzpatrick requested an update on 500 Ocean. Ms. Brooks wanted the Board to be aware that an agreement was reached. She would invite them to the next meeting and noted they were meeting the timeline. Chair Taylor announced he, Ms. Brooks, City Manager Lori LaVerriere and Development staff met with "The Plaza", a builder/contractor company. They discussed the Town Square project and were very interested. Chair Taylor anticipated they would be invited to speak with their President and would keep the Board apprised. Mr. McCray wished all a safe and Happy Thanksgiving. Mr. Hay inquired about Ocean Breeze and the Family Dollar store. Ms. Brooks explained the store has a building permit and construction should commence in January. They were also meeting again with Ocean Breeze east the next week. V. Executive Director's Report: None XVI. Future Agenda Items: None XVII. Adjournment There being no further business to discuss, Chair Taylor adjourned the meeting at 8:08 p.m. Catherine Cherry Minutes Specialist 120114 12