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Minutes 02-10-15 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY L BOARD MEETING HELD IN COMMISSION CHAMBERS, CITY HALL, 100 E. BOYNTON BEACH BLVD., BOYNTON BEACH, FLORIDA, ON FEBRUARY 10, 2016, AT 6:30 P.M. TEEMMMM!= PRESENT: Jerry Taylor, Chair Vivian Brooks, Executive Director Joe Casello, Vice Chair Tara Duhy, Board Counsel Buck Buchanan Michael Fitzpatrick Woodrow Hay Mack McCray David Merker I. Call to Order Chair Taylor called the meeting to order at 6:32 p.m. 11. Invocation and Pledge to the Flag Mr. McCray gave the invocation followed by Vice Chair Casello leading the Pledge to the Flag. Ill. Roll Call Roll call established a quorum was present. I. Legal Ken Spillias, CRA Board Counsel, explained at the end of the month, he was withdrawing from his law firm and taking a position with Ocean Ridge. Attorney Tara Duhy will take over for him. He indicated he enjoyed his time as Counsel, and Boynton Beach has many things ongoing and great promise for the future. He thanked all for the opportunity to serve. Chair Taylor and the Board members wished him well. Attorney Spillias explained at the Board's direction, he engaged the services of West Palm Beach Attorney, Christine Hanley, an expert in Employment Law, who has conducted many investigations. Attorney Hanley started the investigation almost immediately, and she conducted many interviews. She will provide a written report to the Board with her findings and recommendations moving forward. Attorney Spillias recommended a special meeting take place between now and the next CRA meeting to review the report. It is an important topic and he anticipated one hour would be needed. After brief discussion, the members opted to have the special meeting at 5:30 p.m., one hour before the City Commission meeting scheduled for th February 17 Meeting Minutes Community Redevelopment Board Boynton Beach, Florida February 10, 2015 V. Agenda Approval: A. Additions, Deletions, Corrections to the Agenda None. B. Adoption of Agenda Motion Mr. McCray moved to approve the agenda. Mr. Hay seconded the motion that unanimously passed. I. Informational It and Disclosures by or Members and CRA Staff: A. Disclosure of Conflicts, Contacts and Relationships for Items Presented to the CRA Board on Agenda Items Mr. Hay had no disclosures. Mr. Fitzpatrick commented at a meeting yesterday, Ms. Brooks was upset when he advised her he would vote against the Gardner proposal because it was in District 11, in retaliation regarding comments made by Mr. McCray about how he would vote against a proposed greenway/bikeway/natural area in District Ill. Ms. Brooks asked him how she could accomplish anything "if you vote crazy." Mr. Fitzpatrick conceded she had a point and tried to explain how guys interact with each other. From the time a boy is in Cub Scouts until he dies, he must respond forcefully to any unprovoked attack from another male, otherwise they will see their fun has no cost, and they will continue to do it again and again. Ms. Brooks inquired if he tried speaking with Mr. McCray. Mr. Fitzpatrick responded he had not, and he would try her suggestion. He called Mr. McCray right then. Mr. cCray's response was he would not discuss the land purchase because of the Sunshine Law, Mr. Fitzpatrick understood and tried to say he wanted to talk about past votes and how to work together, but Mr. McCray cut him off, and that was the end of it. Mr. Fitzpatrick advised they were now at a public, noticed meeting with all the Sunshine requirements. He commented what he wanted to talk about was his philosophy about interacting with other Commissioners. The first principle was the Golden Rule — do unto others as you would have them do unto you. The second principle was live and let live. Mr. Fitzpatrick acknowledged "we are all different, and he did not expect Mr. McCray to see things Mr. Fitzpatrick's way all the time, but so what, he will try not to hold that against him." The third principle was Ted Turner's motto, "Lead, follow, or get out of the way." Mr. Fitzpatrick explained if someone had a project they were interested/invested in, he would try to follow along. The Mayor and Mr. Hay's initiative on mental health 2 Meeting Minutes Community Redevelopment r Boynton B each, Florida F 10, 201 was an example. The fourth principle was understanding the political process was a constant give and take. When Mr. Fitzpatrick was involved in volunteer groups, he considered if the result ended in 85% of what he thought was best; it was A bull's eye. Kids' Kingdom was not the total playground he wanted because there was no climbing wall, but it was a good playground that provided hours of play for thousands of children. The fifth principle was his word was his bond. The problem for him was what to do when the system breaks. What should he do and how should he respond when another Commissioner was doing things to him that he would not do back. There was no live and let live, but control so tight, he could not breathe. It stood as an obstacle between him and a goal he invested hundreds of hours in. They were quite willing to take millions of-dollars from his votes, but give no votes in return, and their word could not be trusted. This was a problem for him. Mr. Fitzpatrick did not plan to spend a lot of time thinking about responses until things shook out, and he would prefer to move forward in a positive direction for the City. Mr. Fitzpatrick ended his statements with two examples of his word as his bond that he found troubling. Mr. Fitzpatrick read from the January 21, 2014 meeting, "Mayor Taylor shared Commissioner Fitzpatrick's desire for more green space. He complimented Commissioner Fitzpatrick on the data he had gathered, meeting with County officials and reporting information submitted. Mayor Taylor thought the negotiations to purchase the property from the County for $100,000 could be pursued." He read another example from the 'September 3, 2014, City Commission meeting as follows: "Commissioner Fitzpatrick asked where the $100,000 was budgeted for the 4.8 acres around Lake Ida. Commissioner McCray asked if the funds could be attained from Park Impact Fees. Ms. LVerriere replied there was a Park Impact Fee Fund to be used for park improvements or planning. There was a balance of $585,000, with $250,000 to $300,000 encumbered for projects. The budget could be adjusted for $100,000 or funds pulled from fund balance reserves. Later on, 'Commissioner McCray disagreed with Commissioner erker and contended the park should be obtained, if available, for future growth. Motion, Vice Mayor Casello moved to have the money set aside for the purchase of the site out of the Park Impact Fee. Commissioner McCray seconded the motion. Vote - 1, Commissioner Merker dissenting.' Thank you." Chair Taylor commended Mr. Fitzpatrick on his strong desire about greenways. He advised he supports it and there was a greenway /blueways plan that all agreed with. It was in the plans, and he would support him on any greenway project that he thought merited support and he totally supports that type of effort. He clarified if he did not think a particular one was at the right time or at that vantage in time, he may or may not support it. With that said, he explained he was concerned about Mr. Fitzpatrick wanting a Board member, or Commissioner to vote for a project in his ,district, or he would not vote for a project in their district was a little unethical, and he should be careful. He did not believe it was ethical to trade votes back and forth. One was supposed to vote for what was good for the City and the vote should be based solely on that. Mr. Fitzpatrick clarified Ms. Brooks straightened him out and he would not do that. 3 Meeting Minutes Community Redevelopment or Boynton Beach, Florida February 10, 2015 Vice Chair Casello requested pulling Consent Agenda Items 8D and 8E for a point of information. Motion Mr. cCray moved to amend. Mr. Hay seconded the motion that unanimously passed. Mr. cCray disclosed he met with Scott Maslin along with the President of INCA regarding Yachtsman Plaza. This Plaza is in the City of Boynton, and the community has been plagued by it due to its bars, loitering and littering, etc. The individual came forth to upgrade the Plaza and make it a better area for all to live. He agreed with the project he was planning. Mr. cCray also spoke with CRA Board Counsel regarding his departure and thanked him for his time spent with him and his service and ethics training at Palm Beach State College. He advised when he first started office, he had baby skin, and when he left, he had alligator skin. When he gave the invocation, he had suggested when the members left the meeting, they should leave with love, and he loves everyone. Mr. Buchanan had no disclosures. B. Informational Announcements Mr. Hay attended the Kinetic Art Symposium and expressed it was well done, and spread out. He also attended a signing of athletes at Boynton Beach High School and advised the City should be proud of the students. Initially, there were no students who obtained athletic scholarships. This last week, there were 15 students that signed scholarships to major universities. The City has a great high school and students. Mr. Buchanan congratulated City Staff on the Kinetic Art Symposium. They did a great job and it was a terrific event. He thanked Attorney Spillias for his work for the Board. Mr. cCray also attended the Kinetic Art Symposium and spoke to others at the Garlic Fest about the event. One individual then attended the Symposium and was fascinated by the Talking Tree. Mr. Merker advised he attended the Kinetic Art Symposium and he was asked by a Church to give a talk on Black History Month. He advised a historian named Henderson started Black History Month 1926. In 1976, President Ford made Black History Month official in the U.S. The United Kingdom recognized Black History Month in 1987, and Canada did so.in 1999. He advised history teaches all the past. It is part of the present and one should look forward to the future. It was important for all Americans to understand the heart and soul of people who are part of the United States and it was an honor and privilege to speak. 4 MeetingMinutes Community Redevelopment or Boynton,Beach, Florida February 10, 2016 Chair Taylor attended the Kinetic Art Symposium three-day event, and advised it was a tremendous success. Over 5,000 individuals attended, and it was good for people to come to the community. Additionally, the Museum received donations and many new memberships. He attended the 1920s gala fundraiser at the Boynton Woman's Club. It was well attended and he had a great time. He requested Ms. Brooks contact the City's lobbyist to provide information on the grant the City was seeking to restore the historic building. It was hoped the lobbyist could assist with receiving an award. VII. Announcements & Awards: A. Movies in the Park: Recap — 2/6/15 — Penguins of Madagascar Next Movie — 3/6/15 Amy Zimmermann, CRA Special Events, announced the February 6, 2015, viewing of Penguins of Madasgascarwas rained out and would be viewed on March 6, 2015. C. Happy Hour Friday — Music on the Rocks — 2/20/15 — Sweet Justice Reggae Band, Sweet Justice, will play on February 20, 2015. D. Boynton Beach St. Patrick's Day Celebration/Blarney Bash — 3/13/15 Blarney Bash, a new event for St. Patrick's Day will be on March 13, 2015, from 4 p.m. to 10 p.m. Three bands will be playing which were U2 by UV, The Crack, and Mighty Quinn. Food, drinks, and children's activities would be available. There will be a Best Green Outfit contest and green beer to celebrate. She invited all to attend. E. Boynton Harbor Marina Fuel Dock & Master Building Ribbon Cutting Ceremony — 2/26/15 Tracy Smith-Coffee, CRA Marketing and Business Development, announced the Ribbon-Cutting Ceremony for the Boynton Harbor Marina Master Building. Save the Date cards were distributed. The event will take place on February 26, 2015, from 6 to 8 p.m. In addition to the ribbon cutting, there will be light hors d'oeuvres and drinks. VIII. Consent Agenda: A. Approval of Minutes — CRA Board Meeting, January 13, 2015 B. Approval of Period Ended January 31, 2015 Financial Report C. Monthly Purchase Orders 5 Meeting Minutes Community Redevelopment Board Boynton Beach, Florida February 10, 2015 D. Approval of Commercial Fagade Grant to Boynton Beach Dive Center, LLC E. Approval of Commercial Fagade Grants to Yachtsman Properties, LLC IX Pulled Consent Agenda Items: D. Approval of Commercial Fagade Grant to Boynton Beach Dive Center, LLC Vice Chair Casello pulled this item and advised he supported Items D and E. He noted the Dive Center was just under the required square footage to be eligible for the grant. Ms. Brooks explained that square footage was not a requirement for a fagade grant, and this would be discussed later. E. Approval of Commercial Fagade Grants to Yachtsman Properties, LLC Vice Chair Casello noted there were two grants going to Yachtsman Plaza. Ms. Brooks clarified there were two properties involved, and the owner was spending over $600,000 just to improve the exterior. Mr. Buchanan favored the grants and advised the President of INCA was present to suggest one change regarding this item. Harry Woodworth, INCA President, 685 NE 15 Place, advised he and Commissioner McCray met with Mr. Maslin, who had any good ideas; one being to move the bus stop. Chair Taylor advised his daughter works for Palm Tran, and she was integrally familiar with how to move a bus stop. He recommended he speak with her for assistance. Mr. Maslin was amenable to paying for a bus shelter if the stop was moved. Mr. Buchanan did not want to delay the grant, but was concerned about the safety of the area. He wanted to approve the item with a strong recommendation this be included. Ms. Brooks commented she would need an easement agreement from him. Chair Taylor agreed with Mr. McCray, the change was needed for a long time. Yachtsman Plaza would be greatly improved. Motion Mr. McCray moved to approve Items VIII D and E. Mr. Fitzpatrick seconded the motion. Mr. McCray announced he had spoken with the President of INCA regarding removal of the wood FPL poles. A letter to the president of the gas plant on Federal Highway 6 Meeting Minutes Community Redevelopment Board Boynton Beach, Florida February 10, 2015 informing them of what they would like to improve at that corner, in reference to the trains coming in, was also sent. Mr. cCray pointed out this would be for the benefit of the entire City. The motion unanimously passed. X. Information Only: A. Public Comment Log B. Business Development Advertising Campaign C. Potential Refunding of Series 2005B Bond D. Banner Project — Heart of Boynton, Marina & Boynton each Blvd. I. Public Comments: (Note: comments are limited to 3 minutes in duration) Daniel pot N. Federal Highway, offered comments about the CRA meeting held in January and hoped they would be construed as constructive. He indicated he did not know who was right or wrong regarding the situation involving Ms. Brooks and Mr. Merker regarding inappropriate touching and indicated that her two emails were nothing more, or less, than a smear on the reputation of Mr. Merker. It noted Ms. Brooks' prior CA boss, Lisa Bright, made similar accusations against Board Member and Mayor Jose Rodriguez. He understood Ms. Bright filed charges with the police. Other Commissioners urged Mayor Rodriguez to resign, and when he did not, he was charged with domestic violence and eventually Ms. Bright and Mayor Rodriguez were forced out. More recently, Commissioner Ross was accused of odd and indecent behavior, purportedly emailing nude pictures of herself to her male cousin. Now a CRA Director asserted Mr. Merker touched her posterior. Mr. Spotts commented he rarely hears of any other community having even one sex related incident involving elected officials over decades, and Boynton Beach has had at least four in the past few years. He contended either Boynton has the oddest, homiest group of elected officials, or something else was going on, Mr. Spotts commented many individuals have noted that since Mr. Merker was elected, it appeared to Mr. Spotts, that at almost every meeting there is some kind of insult, backhanded comment, or cold shoulder directed at him. Mr. Spotts was present when a citizen was allowed to make outrageous comments about Mr. Merker's supposed behavior in a local restaurant, which he believed was Hurricane Alley's. Mr. Spotts expressed even if they were true, the comments seem to violate the Commission's policy about decorum at public meetings during the comment period if the Mayor let the person speak without comment or question. Mr. Spotts clarified he was not a fan or a defender of Mr. Merker, who gave an odd invocation a few months ago 7 Meeting.Minutes Commun(ity Redevelopment or Boynton Beach, Florida February 10, 2015 suggesting a deck of playing cards could be a substitute for the calendar and the Holy Bible, but noted when Mr. Merker was finished, individuals applauded saying Praise the Lord, Amen, and Jesus is King. Even the Mayor commented with a straight face, what was said was all very true and very important. Mr. Spotts differed from that view. Mr. Fitzpatrick spoke for 15 minutes how Hitler's rocket base, the Peenemunda, could strike the closest train station, so he was not the only oddball present. At the same CRA meeting, a citizen asked how the sexual harassment allegations could occur when all City employees are covered by a Policy and Procedure for handling these complaints; however, it was learned CRA employees were not City employees. CRA employees serve at the discretion of the CRA Board, and it makes them the perfect choice to. launch political assignation campaigns, especially if the person making the charge is in danger of losing his or her job. Mr. Spotts recalled when he first came to Boynton; Ms. Brooks was a CRA receptionist. He asserted by any measure, Ms. Brooks was a nice lady, but a complete failure as the CRA Director. While Ms. Brooks could hold a Pirate Bash or party, in the past eight months, over 21 businesses have left the CRA District, and none have been replaced. More than two dozen other spaces, some built with Ms. Brooks' assistance, have not been rented in years, yet she still claims there is a shortage of retail space in the downtowd. Millions have been spent, with nothing to show for it. He inquired why Ms. Brooks was still employed, and asserted it was because she was doing what the CRA Board wants her to do. When the elected Commissioners dissolved the independent CRA Board and appointed themselves, and a couple of their friends, there is the appearance the CRA is nothing more than a taxpayer funded slush fund for Commission members to reward their friends, and attack their enemies. Mr. Spotts urged the CRA Board to replace Ms. Brooks as soon as possible, and urged them to return the CRA Board to members of the business community, the faith-based community or other non-governmental organization with the City Commission as a check and balance for all their decisions. He urged them to immediately adopt the same policies and procedures for handling sexual harassment claims at the CRA that the City has, or outsource the whole job to the City. He did not think there should be a discussion of what should be done, and urged them to call for an outside investigation by the Governor's Office, or the Florida Department of Law Enforcement, rather than a pointless.CRA investigation, paid for by the same members that want Mr. Merker thrown out. He urged the Board to listen to its counsel that neither the CRA Board or the City Commission could remove Mr. Merker. Only the Governor or the people who elected him could, and he suggested they let him do his job. x1l. Public Hearing X111. Old Business: 8 Meeting Minutes Community Redevelopment or Boynton Beach, Florida February 10, 2015 A. Consideration of Direct Incentive Funding Agreement for the 500 Ocean Project between Morgan Boynton Beach, LLC and the Boynton Beach Community Redevelopment Agency - Tabled 12/9/14 Motion Mr. cCray moved to remove. Mr. Hay seconded the motion that unanimously passed. Ms. Brooks explained they had been waiting for two items. One was the proposed green elements from the developer, and the other was how they would be monitored over a 10 -year period. When they were received, she worked with Andrew Mack, Chief Building Inspector, who was LEED certified to ensure the project met the green building criteria. Morgan Boynton Beach, LLC, had requested $3 million upfront and a 15-year TIF agreement. After negotiations, the request was for a 10-year TIF agreement and no upfront funds. Ms. Brooks emphasized for the benefit of the public, there was no upfront money from the CRA, and they would only be paid when the project was constructed and on the tax rolls. The CRA and the developer would share the TIF created by the project. She recommended approval of the development. Tom Hayden, Morgan Boynton Beach, LLC, confirmed Ms. Brook's comments and advised it took some time to reach agreement. From a personal perspective, he found Ms. Brooks to be extremely professional and to always have the City's best interest in mind when they negotiated. He did not find anything other than her representing the City in a fashion which the Board would be proud of. Mr. Hayden explained they hoped to commence in April provided approval was given. The plans for the garage and site will be submitted at the end of the month, followed by the building plans the following month. Vice Chair Casello had also met with Mr. Hayden. He commended him on his patience and Ms. Brooks for making the project work. Mr. Hayden explained their faith in Boynton Beach had not wavered. They believe in Boynton Beach and were looking forward to get started. Mr. cCray inquired if Mr. Hayden was in agreement with no upfront funds and the 10- year TIF plan, and Mr. Hayden responded he was. Mr. Fitzpatrick inquired about Section 8 limitations and read a provision of the agreement. He inquired if the project changed ownership if the TIF would go away and Ms. Brooks confirmed it would. Daniel Spotts, 805 N. Federal Highway, wanted to ensure Mr. Hayden was aware the Florida East Coast (FEC) Railroad would be running 30 freight trains per day within a 9 Meeting Minutes Community Redevelopment Board B oynton Beach, Florida February 1, 2015 few yards of the project's apartments. If All Aboard Florida was approved, 32 more passenger trains would be traveling between 80 to 100 miles per hour a few yards from the retail stores. He commented the project was laid out with the main entrance and exit next 'to the Ocean Avenue railroad crossing, and he should expect 60 or more closings per day, backing up traffic for tenants. Mr. Spotts explained the quiet zones were not guaranteed. He inquired if Mr. Hayden was prepared to assume the moral, if not legal responsibility, in writing, about the plans for the railroad and asked if there were any tenants lined up. He asked the Commission what the $4. 4 million was for and understood at first, it was described as an investment incentive. Then it was called rental support. Now, it was described as a green incentive and they would be required to install three electric vehicle charging stations. He asked why the CRA was paying for this and asked how the $4.4 million benefitted the existing businesses and residents of the CRA District. He thought it looked pathetic the CRA was paying WalMart $2.3 million to locate to the area and now another developer $4.4 million for this project. He asked if limited liability corporations have guaranteed tenants. He explained anyone could hire a crew to build empty retail spaces and offices, but believed a developer comes with guaranteed tenants. Mr. Spotts indicated Ms. Brooks claims there is a shortage of retail space in the downtown area, and pointed out that half of Las Ventanas, Marina Village, and Ocean Walk were empty, and 100% of Casa Costa retail space was empty. Over 21 businesses left the downtown and Mr. Spotts believed if the CRA subsidized the building of more empty retail office space, it further decreased the rental and property values of those who own business property. He did not believe in the "build it and they will come perception," and asserted downtown Boynton could never reach its full potential while 60 trains a day pass by without stopping. He commented the CRA would continue to waste money with this and he wanted to know if there would be guaranteed tenants. Chair Taylor commented the TIF funds do what they are supposed to do, which was attract businesses to an area that would otherwise not be developed. They have been working very hard to develop a downtown for Boynton Beach for years. In order to have a downtown, one must attract businesses and have a population to support the businesses. That was the purpose of mixed uses. Mr. Merker commented Ms. Brooks spent a lot of time and effort to make the development successful, and he gave her kudos. He understood about the trains, but pointed out other cities face the same issue and it would not stop the City from moving forward. He strongly believed in Mr. Hayden's project and wanted it to be successful, so the City would be successful. He wished Mr. Hayden success and urged all to be optimistic. Vice Chair Casello addressed Mr. Spotts' comments made each week about the train and explained the train was coming and they will live within the parameters. The project, which proposed 341 apartments, would bring people and residents to the area, which 10 Meeting Minutes Community Redevelopment or Boynton Florida February 10, 2015 hopefully would be a catalyst for businesses to occupy the empty store fronts. He recommended trying to be more understanding. Ms. Brooks clarified the non-credit worthy businesses were leaving, and credit worthy businesses were coming in. One example was Sunshine Square. They filled the entire plaza with credit worthy businesses. Casa Costa just signed a lease with an Argentinian Steak House and another restaurant. The CRA is changing and rents were increasing. As a result, businesses that were not credit worthy, could not afford the increase and were leaving. Ms. Brooks explained this was her second CRA position and she never worked as a receptionist. Las Ventanas was currently working on lease arrangements. She thanked Mr. Hayden for his patience, and she was glad he was investing in the downtown. She hoped many of his tenants would use the commuter train, when it arrived, to go to Miami, Orlando, or wherever they wanted. Motion Mr. Hay moved to approve the Direct Incentive Funding Agreement for the 500 Ocean Project between the CRA and Morgan Boynton Beach LLC. Mr. Merker seconded the motion that unanimously passed. Mr. McCray explained an individual made comments about a receptionist and an individual ' responded. He thought it was redundant and comments and personal attacks bothered him. He urged all to move on with the business at hand. B. Update on Marina Village Parking Garage Management Mike Simon, Assistant CRA Director, updated the Board the Marina Village Master Board voted to institute fees. The fees will be in effect Fridays through Sundays from 7 and 9 p.m. between February 13 th and June 14 th , which was the height of season. Mr. Simon also advised he and Ms. Brooks had been working on the agreement for parking at the former Bank of America site. The CRA was contemplating other sites for parking and were working to make them available through the same process as Bank of America. Vice Chair Casello inquired if CRA tenants received passes so they would not be charged to park and Mr. Simon responded each of them was given one pass to park in the garage for free. In response to a question from Mr. McCray, Mr. Simon explained the parking fee was instituted by Marina Village Board, not the tenants or CRA. Mr. Hay inquired if CRA counsel should be apprised of the changes. Mr. Simon explained staff sent the agreement that was used in the past for special events to Bank of America so they had something to work with and respond. They tweaked it for long- 11 Meeting Minutes Community Redevelopment or Boynton Beach, Florida February 10, 2015 term use, which included basic terms to work with. The CRA would review it when it was returned C. Consideration of Purchase Agreement with Gardner Capital for CRA Owned Property along the Martin Luther King, Jr. Blvd. Corridor Ms. Brooks explained at the December 2014 meeting, Gardner Capital submitted a letter of interest to construct a mixed-use project. The Board was interested and instructed staff to issue a Notice of Intent, (NOI) and no other party came forward. Gardner Capital attempted to obtain land use zoning and site plan approval for the 2014 Florida Housing Finance Tax Credit cycle, but there was not enough time to accomplish that. Gardner Capital was returning to the Board for a Purchase Agreement, which was a standard purchase and development agreement the CRA used in the past. They were offering $600,000 for 10 parcels on the south side of the corridor. Ms. Brooks explained the property on the north side should be preserved for commercial uses because Family Dollar was contemplating bringing in a full-service grocer and other neighborhood retail. Ms. Brooks recommended approving the agreement with them until they go through the 2015 Florida Housing Finance Tax Credit cycle and site plan, permitting and construction process. Gardner Capital requested two years, but Ms. Brooks did not agree. Instead, they added an option to renew the agreement if both parties desired to move forward. That was the only change to the standard agreement. Mr. Merker requested confirmation if Gardner did not get the credits, they could apply next year. Ms. Brooks explained if Gardner sought to do so, it would come back to the Board. It was not automatic. Additionally, if they were approved for the land use, rezoning and site plan, and unsuccessful with the credits, the CRA would reimburse Gardner for those costs, except for legal and overhead, because they own the land that was now entitled. They initially wanted the CRA to pay for the whole thing, but she only agreed, since the CRA owns the land, reimbursement of only the expenses she listed was fair. Mr. Merker explained this project was important, and if they could change the atmospheres in certain areas, they were truly developing the City. Other developers will realize what was accomplished and want to develop in this area. Mr. McCray inquired if they sold the land for $600,000, when the CRA would obtain the money, and Ms. Brooks responded at the construction loan closing. Mr. Fitzpatrick understood they would show the market value and the appraised value. Ms. Brooks explained the information was in the December meeting materials. The Property Appraiser's Office assessed the property for less than $600,000, but the CRA paid more at the height of the market. The procedure with CRAB was to write down the value of the land as an incentive. Mr. Fitzpatrick preferred to have the information available and Ms. Brooks agreed to email it to him. 12 Meeting Minutes Community Redevelopment or Boynton.'Beadh, Florida February 10, 2015 Mr. Fitzpatrick also inquired about the Notice and if the process was similar to an RFP. Ms. Brooks explained they issued a Notice of Intent because Gardner came in expressing an interest about the two parcels. Ms. Brooks explained staff could issue an RFP or issue a Notice of Intent to dispose of the property, which was what they did with Family Dollar. (Mr. Merker left the dais at 7.32 p.m.) The Notice is advertised in a newspaper of general circulation, and any proposals received had to be brought to the Board for consideration. In this instance, this firm was the only One that expressed interest. Under the Heart of Boynton Plan, they could construct 20 dwelling units per acre, which was ambitious considering the regulations. (Mr. Merker returned to the dais at 7:34 p.m.) The developer was seeking to obtain the Florida Housing Finance 9% tax credits, which were based on a scoring system. A minimum score is needed to get into the lottery. Generally, one project is picked per year. It was a good way to fund a project in a difficult to develop census tract. The tax credits are sold which provides the construction costs and. the rents are then limited to the County's median income. The construction is subsidized and the rent was capped. Increases were based on income and other factors. , (Mr. McCray left the dais at 7:35 p.m.) Ms. Brooks explained a one bedroom could be $700, a two bedroom could be $950, and a three mbedroom could be $1,500. Mr. Fitzpatrick inquired what happens if they disagree with what the Board wants. Ms. Brooks explained the details are ironed out before the land is transferred, plus there is a reverter clause. Vice Chair Casello asked about the firm's history with Tax Credit project. Allan Schnier, 10489 Mateo Court, Boca Raton, was on the original committee that created the tax credit program in 1986. It is one of the best programs ever to come out of Washington for affordable rental housing. The program is geared to families that earn up to 60% of the area median income. In Palm Beach County, the median income was about $63,600. Sixty percent would be about $44,000. (Mr. McCray returned to the dais at 7:38 p.m.) Mr. Schnier provided the program's history and offered to take them to Lake Worth to view a state of the art development he recently completed. He agreed selling the tax credits provided the equity to develop the project so there was less debt. Mr. Schnier, as a developer, completed six or seven developments. As an investor, he was involved in over 20,000 units. His experience with the program dated back to 1986. 13 Meeting Minutes Community Redevelopment or Boynton Beach, Florida February 10, 2015 Ms. Brooks advised if they did not meet the timeline in the development agreement, which the Board sets, the CRA could indicate they did not want to move forward. If Gardner fell behind, and the Board thought it was for a valid reason, they could continue. If the tax credits were not obtained, nothing would occur, only entitlement costs would be reimbursed and ownership of the property would revert back to the CRA. Chair Taylor noted they missed the 2014 tax credit deadline. Mr. Schnier explained the 2015 application cycle would be towards the end of the calendar year, and they would start the land use and zoning process now, since other funding opportunities would be available in the late fall. Ms. Brooks noted the CRA received the letter of intent in December, and this would follow the City Commission and Planning and Development process just like any other project. They would learn if they were successful in February or no later than March. Chair Taylor noted this was a year-long process. If someone else wanted to develop a project, they could not. Ms. Brooks explained the difficulty developing the area was the average median income for that census tract was $22,000. She doubted anyone would come in to develop without a tax credit deal. The plus side was the land would already be entitled and they would not have to wait four or five months to go through the planning process. Mr. Merker understood there were other grants available. Mr. Schnier explained they will pursue every financing opportunity there was. Ms. Brooks reiterated if they failed to obtain .tax credits, the Board could back out of the agreement. Mr. Fitzpatrick was willing to wait a little longer and thought it was a trade-off. Mr. Merker viewed it as the Board was hiring a company to complete the project through various avenues. Mr. Hay agreed with Mr. Fitzpatrick, but did not see a contingency plan. Mr. Schnier clarified there were various ways to build the project, and they would leave no stone unturned. They would pursue various options, but he knew from experience, the 9% tax credit was a good way to proceed. If they should fail, due to its entitlement, someone else could reap the benefit of an improved property in the future. Mr. Buchanan acknowledged a year was a long time to wait, but noted there would be six months' work completed. He thought it was a good way to proceed. Motion Mr. Buchanan moved to approve the purchase and development agreement. Messrs. McCray and Merker seconded the motion Mr. Fitzpatrick asked if they did not get the tax credit, and used lower-quality materials, if they had the option to back out. Ms. Brooks responded they would most likely offer less for the property, or request a DIFA. Mr. Schnier explained whether they obtain the 9% tax credits or the 4% credits, they would use the highest quality materials because it would lower their maintenance costs. 14 Meeting Minutes Community Redevelopment or Boynton Beach, Florida February 10, 2015 Chair Taylor appreciated the questions and comments made. The motion unanimously passed. Mr. cCray disclosed he had met with Mr. Schnier. Mr. Hay inquired if there was anything they could do to help the project along. Chair Taylor hoped the lobbyist would have some influence in the matter. D. Consideration of Development Agreement Terms with HH Boynton, LLC for Ocean Breeze East Ms. Brooks explained staff and the development team met on January 9th to develop terms and move the project along. This was a 4.5 acre site the CRA owns on Seacrest Boulevard. The developer responded to the RFP and proposed to build about 200 units and 1,200 square feet of medical office on site. Staff had to determine how much the CRA would contribute and how much the developer would contribute. The Respondent owns adjacent rental property. Staff desired to redevelop the entire block which would have the most impact to the community. Steve Michaels from HH Boynton LLC sent a letter, included in the meeting backup, indicating the developer would purchase the land at the end of a 15-year term at 4% non-compounded interest, and the CRA would pay for the site improvements. The estimated cost of those items was $600,000. She clarified those items were required of the developer in the RFP. The third item was tax increment financing at 50% of the tax increment revenue created by the project for a 15 year term.. Ms. Brooks explained the CRA was writing down the value of the land depending on how many units were constructed. The HOB plan permitted up to 40 dwelling units per acre, placing the value of the land between $3.2 million and $6.4 million. She did not think they should have to wait 15 years to receive the cost of their land. The adjacent property owner would get the uptick on his property value when the construction loan closed and Ms. Brooks believed the CRA should get their property costs at construction loan closing as well. Ms. Brooks was okay with the DIFA because it was sharing in the value of the project over time, but supported a 10 -year term. The developer was looking to the CRA for $5.3 million and $8.5 million. The completed project value was estimated to be $21 million. She thought it was more than staff felt they would contribute. Ms. Brooks recommended the CRA receive the land costs at construction loan closing, just as Family Dollar and Garner Capital did. The streetscape elements were included in the RFP and could be financed in the project and she did not think it was an issue. She thought if the developer could agree to those terms, and the project was doable, staff could bring back a purchase and development agreement in March. Mr. Merker thought the project should be further negotiated in the next 30 days. 15 Meeting Minutes Community Redevelopment Board Boynton Beach, Florida February 10, 2015 Vice Chair Casello inquired if Ms. Brooks had any verbal communication with the developer. She responded they met on January 9 He noted the project did not look anything like what the Board agreed with. Ms. Brooks explained it was a matter of negotiation and they have to consider the neighborhood they were working in. She thought they were on the right track and it was a difficult census tract to building. She did not want to leave the meeting without firm direction from the Board. Vice Chair Casello did not want to give away the store. Ms. Brooks agreed. Chair Taylor was unsure what was being considered. He did not agree to the terms, and explained the developer should agree with the terms in the RFP. The project was changed and he was unsure who the developer was. Ms. Brooks confirmed there were some design revisions, and she had not viewed a site plan. Ms. Brooks expressed the CRA wants to move the project forward and interest rates were good. If the developer wants to move forward under the terms set by the Board, they could. The Board always has design approval. Mr. McCray agreed the project was confusing. Motion Mr. McCray moved to table the item. Mr. Fitzpatrick seconded the motion that unanimously passed. XIV. New Business: A. Discussion of Rent Reimbursement Grant to Boynton Beach Dive Center, LLC Motion Mr. McCray moved to approve. Vice Chair Casello seconded the motion. Vice Chair Casello questioned the square footage, which was slightly less than the requirements dictated. Mr. Simon explained the program parameter was the building would increase by 50% of its current square footage. All other conditions were met. This item was not able to be on the Consent Agenda and staff supported the request. Vice Chair Casello inquired if the Board approved the request, would they be setting a precedent? Mr. Simon explained in the next budget year, they would be reviewing all the conditions of the grant, their hindrances and other factors that may need to be adjusted. The square footage was only one requirement they were reviewing. The intent was to save and promote businesses. In the past, they discussed waivers, legal waivers, special conditions and the consensus at the time was rather than granting a waiver, each grant application be reviewed on a case-by-case basis. 16 Meeting Minutes Community Redevelopment or Boynton Beach, Florida February 10, 2015 Chair Taylor noted there was no space in the building to expand to, and they were almost doubling the retail space at their other location. Motion Vice Chair Casello moved to approve. Mr. cCray seconded the motion. There were no comments from the audience. The motion unanimously passed. B. Discussion of Interior Build-Out Grant to Boynton Beach Dive Center, LLC Motion Mr. Merker moved to approve. Mr. cCray seconded the motion that unanimously passed. Mr. Simon explained the building next to the Pantry that was vacated by Artist Deborah Brookes will be reoccupied. It was appropriate to approve the request. B. Consideration of Invitation to Bid for Marine Fuel Dispenser Replacement Project Mr. Simon explained this item was to release the Invitation to Bid for the Marine Fuel Dispenser contained in Phase 11 of the development of the Marina. The condition of the equipment was included in the meeting materials. They did use the contractor for the underground work while the site improvements were made in preparation for the above ground facilities. The request was essentially a replacement of the equipment. Due to the cost being over $25,000, they had to use an RFP. Motion Mr. Merker moved to approve. Mr. Hay seconded the motion. There was an inquiry about where the CRA purchases the fuel. Mr. Simon explained they purchase fuel from the Port of Miami in bulk through a distributor. Mr. Hay inquired how many larger boats the equipment could now service. Mr. Simon responded the closest fueling station for them was by Key Lime House. The Boynton Marina fuel equipment would be changed from delivering 18 gallons a minute to between 40 and 60 gallons a minute. The motion unanimously passed. 17 Meeting Minutes Community Redevelopment or Boynton Beach, Florida February 10, 2015 C. Consideration of Addition of Domestic Partnership Policy and Revision of Non-Discrimination Policy Motion Mr. Merker moved to approve. Vice Chair Casello seconded the motion. Susan Harris, Finance Director, explained the item was before the Board because the City recently enacted this policy and the CRA uses the same vendor. The item was the same as the City's. This initiative was being recognized nationwide and the CRA wants to be current. The policy was sent to the attorney to ensure it was compliant with City and State Statute. Chair Taylor commented he voted against this policy on the City Commission level and he would oppose it again. The motion passed 5-2 (Chair Taylor and Mr. Hay dissenting.) XV. Executive Director's Report: A. Development Projects Update Chair Taylor noted it was incredible what was occurring. There were 22 different projects underway. The work was fantastic. B. New Businesses in CRA District Chair Taylor noted two businesses were listed. He inquired what Asura Entertainment LLC was about. Ms. Brooks explained they just obtained the list before the meeting, so they have not yet contacted them. Mr. cCray commented he was shocked that Radio Shack was leaving the Boynton Beach Mall. He also addressed Mr. Fitzpatrick and commented he was not bitter and he was on the.Board to work with everyone. He says good afternoon, and they are still friends. Attorney Duhy was asked if she wanted to make any comments in light of Attorney Spillias leaving the firm. Ms. Duhy explained she was with Mr. Spillias when he interviewed for the position on the Board, and she had been working closely with staff on most of the issues on the agenda. She was a practicing attorney for 10 years, and she handles a great deal of development for local governments, local government entities such as CRAs, and private developers in other areas. She expressed she would be a good representative and provide good counsel. She was Counsel on the Minto West approval in Palm Beach County. Ms. Brooks explained she and Attorney Duhy have worked closely on several issues. 18 Meeting Minutes Community Redevelopment or Boynton 'Beach, Florida February 10, 2015 Mr. Merker inquired was what the normal procedure for the Board to take to fill the position. He asked if they would go out to bid, let the contract run out or if it was the Board's decision how to proceed. Attorney Spillias explained when they were hired, they hired the firm with him as general counsel, but they have always worked for the Board at will, and there was no specific time period on the contract. If the Board is ever not satisfied with Counsel, they have the right to change at a moment's notice. Mr. Fitzpatrick advised, in reference to Mr. McCray, he was fine with Mr. Brooks' suggestion and he would still like to talk about issues with him. He also noticed it appeared the Board was slowly developing a DIFA policy, and it sounded practical to him. Mr. McCray responded to Mr. Fitzpatrick he was a representative of the City, he was sworn in and he respects the Sunshine Law, and he did not see the need to meet. He was all about moving the City forward. Mr. Hay did not think speaking one to one was appropriate. Mr. Fitzpatrick expressed that was an incorrect interpretation of the Sunshine Law, as talking about the past was permissible, but not about future votes. Attorney Duhy explained they cannot talk about issues that were likely to come before the Board in the future if it was remotely possible the issue would arise in the future. She advised against any discussion. Mr. Fitzpatrick asked if expectations of one another were off limits. Attorney Duhy responded to the extent if it was in regard to any particular issue, he should not. XVI. Future Agenda Items: A. Consideration of Proposals for 480 East Ocean Avenue and 211 East Ocean Avenue B. Responses to Invitation to Bid for the Ocean Avenue Lighting . Project C. Responses to Invitation to Bid for the Entry Signage Project D. Responses to Invitation to Bid for the Marine Fuel Dispenser Replacement Project XVII. Adjournment There being no further business to discuss, Chair Taylor adjourned the meeting at 8:19 p.m. 4 L Catherine Cherry Minutes Specialist 021215 19