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Minutes 04-14-15 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD IN COMMISSION CHAMBERS, CITY HALL, 100 E. BOYNTON BEACH BLVD., BOYNTON BEACH, FLORIDA, ON APRIL 1, 2015, AT 6:30 P.M. 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 6:30 p.m. II. Invocation and Pledge to the Flag Mr. McCray gave the invocation and led the Pledge of Allegiance to the Flag. III. Roll Call Roll call revealed a quorum was present. IV. Legal: None V. Agenda Approval: A. Additions, Deletions, Corrections to the Agenda Chair Taylor requested hearing New Business, item B after the Consent Agenda to accommodate a speaker present. Motion Vice Chair Casello moved to approve the change. Mr. Merker seconded the motion that unanimously passed. B. Adoption of Agenda Motion Mr. Hay moved to approve the agenda as amended. Mr. McCray seconded the motion that unanimously passed. Meeting Minutes Community Redevelopment Agency Board B oynton Beach, Florida April 1, 2015 VI. Informational Items and Disclosures by Board Members and CRA Staff: A. Disclosure of Conflicts, Contacts and Relationships for Items Presented to the CRA Board on Agenda Items Ms. Brooks had no disclosures. Mr. Hay disclosed he spoke with Mr. David Katz about a project. As for informational items, he attended the March 19 Concert featuring the Samantha Russell Band. He inquired how the bands were selected and learned staff tries to select bands with different genres. For a band to be considered, they should contact Christopher Burdick. On March 18' between 6 and 9 p.m. he attended the Phase II Harbor Master Building and Fuel Dock Ribbon Cutting. The ceremony was well attended and the project was an asset to community. On March 26 the Family Dollar Ground Breaking occurred. He acknowledged there were many ongoing projects and he was excited about the way the City was progressing. Mr. Fitzpatrick disclosed he spoke with Mr. Salvatore Campanile, Tara Sinclair, David Katz, and Rebecca Shelton. Vice Chair Casello attended the Family Dollar ground breaking and the Boynton Beach Fire Department Fishing Tournament and Chili Cook -off. This year, there were 127 boats and he and Mayor Taylor were judges in the cook -off. Mr. Merker attended the Fire Department event, but found the most meaningful event to be the first MLK day. He commended Rae Whitely and Michael Norwood for organizing it and expressed he believed it was the start of residents and their children learning about their history. Mr. McCray disclosed he spoke with Tara Sinclair. He attended the Delta Sigma Beta event and acknowledged the South Palm Beach County Scholastic Achievement Awards. He was happy to learn over 500 students received awards at St. John Missionary Baptist Church. Mr. Buchanan complimented staff on completing the Harbor Master Building and the City and CRA staff for the Model Block program. He spoke with Architect Jim Williams in the past about Ocean Breeze East. Chair Taylor also attended those events. He explained the director of the food kitchen on Boynton Beach Boulevard by Bethesda Hospital West approached him. The kitchen feeds over 200 people a day and they want to start a program to deliver meals to homebound individuals. They need a room with a few phones to take calls to know where to deliver the food. He stated although this operation was outside the City limits, he contacted the president of Bethesda Hospital who agreed to look into the matter. Chair Taylor encouraged all those present to spread the word to help the food kitchen by allowing them to use just one room to take calls for deliveries. B. Informational Announcements This item was previously addressed. 2 Meeting Minutes Community Redevelopment Agency Board B oynton Beach, Florida April 1, 2015 VII. Announcements & Awards: A. Movies in the Park: Recap — 4/3/15 — Big Hero 6 Next Movie — 5/1/15 — Paddington Bear Chris Burdick, CRA Special Events, reviewed the Big Hero 6 movie that played on April 3r and announced about 150 people attended. Staff also showed promotional videos of local business. Gift certificates, provided by local businesses, were given away at the end of the evening. He announced Paddington Bear would be viewed on May 1st and Mr. Burdick anticipated a good crowd. C. Music on the Rocks - Happy Hour Friday — 4/17/15 — Solid Brass About 100. people attended the March 19 concert featuring the Samantha Russell Band. The next concert on Friday, April 17 from 6 to 9 p.m. features Solid Brass, a classic rock, heavy brass band. The last concert would be on May 15 featuring Making Faces: a rock, reggae and funk band D. Recap of Boynton Beach St. Patrick's Day Celebration /Blarney Bash Mr. Burdick announced the Blarney Bash was very successful for a first -time event. It drew about 1,000 to 1,200 people and was equivalent to attendance at the holiday event. Different food vendors were available, and The Kitchen performed in the dining tent between sets for The Crack, Mighty Quinn, and U2 by UV. He hoped the event would grow bigger next year. VIII. Consent Agenda: A. Approval of Minutes — CRA Special Board Meeting, February 17, 2015 Mr. Hay pulled this item. B. Approval of Minutes — CRA Board Meeting, March 10, 2015 C. Approval of Period Ended March 31, 2015 Financial Report D. Monthly Purchase Orders E. Approval of Change to Homebuyer Assistance Grant Program Short Sale Policy & Guidelines Motion Mr. Fitzpatrick moved to approve the Consent Agenda less Item A. Mr. McCray seconded the motion that unanimously passed. IX. Pulled Consent Agenda Items: A. Approval of Minutes — CRA Special Board Meeting, February 17, 2015 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 1, 201 Mr. Hay explained he pulled this item for corrections on pages 2 and 3, where the mediator was quoted and referred to Mr. Merker as "a CRA Director." He pointed out Mr. Merker is not the CRA Director. Mr. Hay requested Attorney Duhy explain the rules about retaliation. Attorney Duhy clarified when a complaint of harassment or discrimination is filed, it is illegal to take action to retaliate against that individual for filing the complaint. Behaviors that would be perceived as punishing the individual for filing a complaint would be considered retaliatory and make the CRA or the individual liable under the applicable Statutes and rules. Attorney Duhy agreed to provide further information and examples of what would constitute retaliation and forward it to all the Board members. Motion Mr. Hay moved to approve Item A as amended. Vice Chair Casello seconded the motion that unanimously passed. XIV. B. Consideration of Request from Morgan Boynton Beach, LLC to Change the Entity Name on the DIFA (Heard out of Order.) Motion Mr. Merker moved to approve. Mr. McCray seconded the motion that unanimously passed.. X. Information Only: There were no comments received on any of the following items: A. Public Comment Log B. Marketing and Business Development Campaign C. CRA 2014 Annual Report D. Boynton Harbor Marina Ribbon Cutting Ceremony Photo Gallery E. Family Dollar Groundbreaking Celebration Photo Gallery XI. Public Comments: (Note: comments are limited to three minutes in duration) Chair Taylor reminded attendees they could speak about items not on the agenda, but due to its length, the three - minute limit would be strictly enforced. There are also several proposals that would be made. He announced the presenters would have five minutes each to make their presentations. Anyone who wanted to address them would be limited to three minutes. There were no public comments. XII. Public Hearing: XIII. Old Business: A. Consideration of Value Engineering and Funding Options for the East Ocean Avenue Lighting Project 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 1, 2015 Mike Simon, Assistant CRA Director, reviewed staff was asked to negotiate a reduction in the price of the project through value engineering. The RFPs came in higher than the budgeted amount, creating a gap of $160,000. The project area encompassed the west end of Ocean Avenue to Seacrest Boulevard. Photographs of Ocean Avenue were viewed. The light poles stop in front of the Schoolhouse Children's Museum and the project proposed by Brang Construction, the selected contractor, was for nine poles on the north side of the street and six on the south. There would also be six new up lights between the sidewalk and Library parking lot which would draw attention to Ocean Avenue by the Library. Mr. Simon explained there were opportunities for additional lighting. The trees on Ocean Avenue have tree grates which allowed for the up- lights at those locations. There would be 32 lights and 32 new grates. For the area around Dewey Park, in front of the Civic Center and the playground east of the Civic Center was proposed to have 24 tree strap lights shining into the tree canopy. There would be 16 on the west side and eight at Dewey Park. Mr. Simon reviewed options one and two as contained in the meeting materials. Option one reduced the price by $41,000. Option two would reduce the project cost by $52,000. Staff was also directed to find funding in the event they could not close the funding gap and staff did so which was on the agenda as New Business Item A. Mr. Buchanan thought the project was very important to the development of Ocean Avenue and to the atmosphere in the lights and trees. He thought a project reduction would have a major effect on the area. Motion Mr. Buchanan moved to enter into a construction contract with Brang Construction for the East Ocean Avenue Lighting project in the amount of $349,907 with a 15% contingency for a total project funding amount of $405,000, and execute the contract once approved by CRA staff and the CRA Board legal staff. Mr. Hay seconded the motion. Mr. McCray favored the project, but inquired why the Board was not given a picture of what they were voting on. Mr. Simon explained the lights were the same lights used around the Marina tower entrance feature and on the Palm and coconut trees. Mr. McCray requested receiving examples next time. Mr. Merker asked if there was a Phase II and thought more lighting was necessary. He preferred to see a second phase planned and thought it would be easier to implement if done over a longer period of time, as the funds would be available for the project. This was done for other areas such as MLK Boulevard. Mr. Fitzpatrick asked if the poles on the south side would be in the way during construction of 500 Ocean and learned those poles would be relocated. Mr. Simon advised they would paint the blue light poles black, which was consistent with the development occurring on Boynton Beach Boulevard. Mr. Simon noted the current poles were at least 12 years old. He also explained they try not to change all the lights to LED lights because all the poles and fixtures would have to be changed. Additionally, the Board could save $12,000 by changing from multi - colored lights to white lights as long as the change would not sacrifice the integrity of the project. 5 Meeting Minutes Community Redevelopment Agency Board B oynton Beach, Florida April 1, 2015 Vice Chair Casello inquired if the poles by 500 Ocean could be relocated. Jonathan Hay, Kimley Horn and CRA design engineer, explained the poles were the same size and height and the difference in cost to remove them, refurbish and reinstall them was close to the price of new pole. He recommended salvaging the old poles and using them for replacement parts. Vice Chair Casello questioned lighting a playground that was closed at night. Mr. Simon explained changing from single lights to the double lights could stop people from sleeping at the park and the lighting offered crime prevention through environmental design. There are also individuals walking from behind the Civic Center to the street and it was a dark spot. He would like to have a wall light on the east side of the Civic Center wall. The banyan trees by the Civic Center may be removed. Mr. Simon agreed and explained that was part of the reason that area was identified for reduced lighting. It would not sacrifice the integrity of the job. Vice Chair Casello inquired how many poles were destroyed on Ocean Avenue due to car accidents. Mr. Simon was unsure, but explained the repair of the ballasts was very costly and they were not very easy to obtain. The street lights have to match the lights. The up lights were LED lights, but not the poles. Mr. Hay explained the quality of light from an LED light had a different light level on the street and it should be consistent. It would also be safer. Vice Chair Casello noted the Board had discussed using all LED lights and thought it was beneficial to do so on the neon% poles. Chair Taylor responded it was not consistent. Mr. Simon also noted there would be a greater up front cost, which was why the City has not conducted a change out. He could do a cost analysis to determine the cost, but explained this was a design with elements that could be changed. Mr. Hay had no problem with the poles being black, but explained years ago, there was discussion about the poles on the Ocean Avenue Bridge to A1A and Seacrest to A1A, and the teal color was selected for consistency. Mr. McCray also recalled the discussion. Mr. Hay questioned the need to deviate. Ms. Brooks explained all that was put in since then was black on Federal Highway to the downtown. Mr. Simon explained the poles could be painted teal. The 500 Ocean project was putting in black lights. Mr. Hay liked teal from Seacrest to A1A. Chair Taylor expressed the motion on the floor was for the full amount, but staff did not have it budgeted and gave some suggestions to reduce the project. He pointed out under New Business, there was a budget amendment, and he did not want to vote on the motion before he knew where the money was coming from. He requested the Board defer this motion and discuss it with the budget amendment. XIV. New Business: A. Consideration of Resolution No. 15 -02, Budget Amendment #1 FY 2014 -2015 (Heard out of order.) Susan Harris, Finance Director, explained there were two funding sources. There was money from last year's budget for project closeouts, which were the Marina, Phase II and the parking lot. In addition, there was funding for the Cornerstone DIFA that was not utilized, and the developer has not approached the CRA for a performance audit. That totaled $173,285 and a motion would be needed to move the money from last year's budget to this year's. 6 Meeting Minutes Community Redevelopment Agency Board Boynton 'Beach, Florida April 14, 2015 Another funding source was from this year's budget totaling $618,665, from three sources. These were the close out of the Marina Phase II, which was budgeted for $386,000. When everything was paid, there would be $185,000 to re- allocate. Another source was $100,000 from the Preserve DIFA for Cornerstone, who did not provide the information needed to release those funds by the required deadline. Therefore, staff could allocate those funds. The third option was to use $333,665 from the Town Square line item. There was $509,000 in that budget and only a small amount was used. Even if staff allocated the $333,000 to this project and ongoing grants, there would still be $135,000 left in the Town Square line item. Ms. Harris noted the Ocean Avenue Lighting project needed $160,000 to complete as originally bid. Mr. McCray emphasized the City Commission determined the poles on the bridge on Ocean Avenue would be teal. Motion Mr. Buchanan amended his motion to specify the poles remained teal. Mr. Fitzpatrick advised he supported eliminating the tree lights and the LEDs, but could not support the motion as proposed. Chair Taylor repeated the motion was to approve the project amount of $405,000 and make the poles teal. Vote The motion passed 5 -2 (Vice Chair Casello and Mr. Fitzpatrick dissenting.) Mr. Merker went on record he was opposed to the color change to teal, but supported the motion. (Approval of the budget amendment was addressed later in the meeting.) B. Consideration of Value Engineering and Funding Options for the City Welcome Signage Project Mr. Simon reviewed the project and the history of the responses. Collage Design Construction Group's bid was $243,472 with a contingency that created a funding gap of $125,000. The Board directed all to meet again to reduce the price though value engineering. The members viewed two sign options. Motion Mr. Buchanan moved to enter into a construction contract with Collage Design & Construction Group, Inc,., as the general contracting firm for the Welcome Signage Project in the amount of $243,472 including a 15% contingency for a total project funding amount of $280 thousand and execution of the contract once approved by CRA staff and Board Legal staff. Mr. Hay seconded the motion. 7 Meeting Minutes Community Redevelopment Agency Board B oynton Beach, Florida April 1, 2015 Motion Mr. McCray amended the motion that gap would be funded from the budget amendment. Mr. Hay seconded the motion that unanimously passed. The lights were LED lights. C. Consideration of Development Agreement Terms with HH Boynton, LLC for Ocean Breeze East — Tabled 3/10/15 Motion Mr. McCray moved to remove the item from the table. Mr. Hay seconded the motion that unanimously passed. Steve Michaels, Hudson Holdings, Boynton, LLC, informed the Board they withdrew from the RFP. The action was not due to lack of interest; rather it was the timing and the ability to compete with potential credit projects as a market rate project made it difficult. He expressed it has been a pleasure to work with Ms. Brooks and Mr. Simon and thanked the Board for the opportunity to bid on the project. If the project is rebid, they would hopefully come back with a more redesigned and more thought out plan for the City. Vice Chair Casello expressed his disappointment as the project was in limbo for months and expressed he did not think their heart was in the project. The remaining Board members expressed similar sentiments. Mr. Buchanan inquired how the Board should proceed with the project. Ms. Brooks recommended they re- appraise the property given the updated Heart of Boynton (HOB) plan and list the property with a commercial multiple listing service, linked to the HOB to obtain interested developers. Staff could negotiate with them and bring the best proposals back to the Board. She commented the RFP process has limitations because of the way staff frames the project and it precluded market creativity. If the Board found a response they liked, staff would issue a Notice of Intent to Dispose of Real Property. She pointed out the CRA is not legally required to issue an RFP and there are very few residential sites left in Palm Beach County. By using the commercial listing service, she thought they would get a better price and find a stronger developer. She explained staff could obtain an appraisal in three weeks. She thought the CRA would receive a better return on the property. Mr. Merker commented this was the second time the project stalled. He inquired if the person coming to the table would be creditable. Ms. Brooks responded that was up to the Board to determine. David Katz, 67 Midwood Lane, suggested the Board allow the second - ranked RFP respondent to re- present their project to the Board. He did not think another month would hurt. Attorney Duuhy explained if the Board wanted to formally terminate negotiations with HH Boynton based on their withdrawal, a motion was needed. Motion Mr. Buchanan so moved. Mr. McCray seconded the motion that unanimously passed. 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 1, 2015 Chair Taylor asked if the Board wanted to pursue Ms. Brooks' recommendation. Mr. McCray favored following Ms. Brooks' recommendation. Mr. Hay inquired why the Board would not reconsider the second respondent. Ms. Brooks explained only Auburn and Hudson Holdings replied to the RFP and Auburn did not offer anything for the property. She thought the CRA would do better in the current market, but commented Auburn could still apply. Vice Chair Casello favored including parameters in an RFP because an RFP was negotiable. Ms. Brooks cautioned when they received responses to this RFP and negotiations changed, many Board members were not happy. She suggested it may be better to negotiate up front and then go through the process as it may have a better outcome. Mr. Buchanan favored following Ms. Brooks' recommendation. Chair Taylor inquired who favored her recommendation. Except for Vice Chair Casello, there was consensus to follow Ms. Brooks' recommendation. C. Consideration of Interested Parties for 480 and 211 East Ocean Avenue — Tabled 3/10/15 Motion Mr. McCray moved to remove the item from the table. Mr. Hay seconded the motion that unanimously passed. Ms. Brooks reminded all they sought to add activity to Ocean Avenue, to convert non - active uses to active, add to the tax rolls, maintain the historic character, create an identify for Ocean Avenue and encourage other businesses to invest there. This was not an RFP. They wanted to obtain qualified interested parties through a commercial broker and the process will remain open until the Board, decides to close it or select a party. 480 Ocean Avenue was built out as a restaurant and had a seating capacity of 75, The property was appraised for $190,000 without the land and the Property Appraiser valued the land at $153,000. The qualified interest parties for 480 E. Ocean Avenue were Sal Campanile for a pizza shop; Bruce Kaplan, for a local development company for a craft beer and pizza establishment; and Rodney Mayo, a local restaurateur contemplating either a fish, coffee, or pizza shop establishment. Mr. Merker noted Mr. Mayo was a new presenter and inquired if allowing him to make a presentation was professional or correct. The only thing that upset him was others could come to the table. Attorney Duhy explained there was no legal reason the Board could not consider who the broker brings to the table. Mr. Merker inquired if they had the right to deny a proposer to make a presentation. Attorney Duhy clarified the CRA has a duty to dispose of property in the best interest of the CRA. It was within the Board's discretion, and she cautioned when making selections, they be based on the CRA's plans and criteria. Mr. Merker the thought door should have been shut. 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 14, 2015 Ms. Brooks explained the three individuals met the CRA's criteria. Vice Chair Casello inquired if a business plan was part of the criteria and learned it was not. Not everyone had a full business plan. Ms. Brooks explained each presenter would have five minutes to make their presentation. Mr. Merker questioned how someone could buy something from a City or County without seeing a plan. Ms. Brooks explained a business plan was a very detailed financial plan and not everyone had one. They had conceptual plans. The CRA asked for proof of their financial ability to operate. Mr. Merker thought financial plans and conceptual plans should be part of the requirement. Ms. Brooks cautioned the members not to get caught up with what they will put there as opposed to their ability to get the project done. The buildings are old buildings and the members should not miss the main issue of what can activate the project before season. Mr. Fitzpatrick was not comfortable moving forward until the CRA owned the land and wanted to consider Item 14D before voting on 480 Ocean Avenue. Attorney Duhy explained the Board was just hearing presentations from proposers on two pieces of property. The goal of the Board was to choose someone to negotiate with. From a legal standpoint, she did not think Item 14D had to be considered first. Chair Taylor disclosed he met with Tara Sinclair and Salvatore Campanile. Salvatore Campanile, Diane Drive, advised he is a master chef and master pizza chef. He trained at the Naples Institute of Culinary Arts and Hotel Management. He owns a 250 -seat restaurant in Delray Beach, which serves wood -fired pizza. His previous restaurant was a 6,000 square -foot, waterfront restaurant in Sugar Loaf Key. He took an abandoned landmark restaurant /tavern and turned it into a restaurant. It was a huge project. When they opened, there was a line out the door and a two -hour wait for a 250 -seat restaurant. He belongs to an association certifying he uses healthful ingredients and old world methodologies. He was under the impression there was a deadline in March to present concepts or plans by a certain time. His restaurant in Delray Beach was very successful. He opened in October and it was voted Best Pizza in Palm Beach County. Mr. Campanile grew up in Naples, Italy and has been in this business his whole life. In Italy, they produce olive oil, wine, and mozzarella. His plan for 480 Ocean Avenue was to create a pizzeria for authentic wood -fired pizza in addition to other foods and farm salads. He thought the building was the ideal location for a destination pizzeria. He is a 10 -year resident of Boynton Beach and has been looking for a location in Boynton Beach for a year. He agreed Ocean Avenue needs foot traffic, a destination restaurant, and social spots where people can meet and enjoy craft beer. He emphasized it was not just romance about food. Operators have to know costs and be able to transition from concept to execution. He did it already and between the two locations on Ocean Avenue, he planned to create at least 40 new jobs. Christian Prakas, one of the brokers, was representing a local development company that could not be at the meeting and advised he has a fiduciary relationship to the board and the presenter and to present all offers to the best of his ability. Mr. Merker thought if the person was not present, the Board should not hear from a third party the Board hired and thought it was absurd. Mr. Prakas commented the presenter was at the last meeting. The local development company wanted to implement a craft beer and artisan pizza 10 Meeting Minutes Community Redevelopment Agency Board Boynton. Beach, Florida April 14, 2015 concept. They increased their offer to purchase the property to $335,000, all cash to close and no CRA incentive. They would like to see if the incentive for the hood system remained. If not, they have a professional partner with the expertise to run the restaurant. The company had invested a, lot in South Florida. They purchased a large property in Delray Beach and were zoning experts. They rezoned a 3.5 acre parcel on Federal Highway and just purchased a restaurant in Delray Beach. They have the financial ability to develop the properties. Paul Smidkin, Anderson and Carr, representing Rodney Mayo, was present with Mr. Mayo. He has been with the business in West Palm Beach since 1986 and Mr. Mayo was in business since 1987. Mr. Mayo is a proven winner with 15 restaurants and has three concepts on Clematis Street. He has multiple units in Delray Beach and he wants to do the same in Boynton Beach. Mr. Mayo would be creative with the spaces he has to work with. 480 Ocean Avenue is a small building with parking. One concept Mr. Mayo was contemplating was an Old Florida Raw Bar similar to Conchy Joe's in Jensen Beach. It would be a casual eatery with craft beers and fresh made to order sandwiches and salads. It would be a true seafood stop with a rustic feel. The second concept was a real chic pizzeria with a wood burning oven. A wood fire menu would be prepared with all foods fresh daily with no freezers, microwave ovens or corners cut. Another concept was the subculture coffee, featuring fresh coffee roasted in -house daily, along with teas, whole beans and other treats. Mr. Mayo would partner with small ecological minded farmers and offer his customers, organic, socially responsible and sustainable products in a warm and quaint atmosphere. Craft beers and wines would also be offered. Mr. Mayo opened a new store in Delray Beach and has a total of 315 employees. They all have friends that frequent his restaurants, and his restaurants are very successful. Chair Taylor opened the floor for questions. Mr. Merker asked Mr. Smidkin if he was contacted by a lobbyist, or member of a City board other than the CRA and he responded no. Mr. McCray noted the three separate concepts and inquired if there would be a fish market. Mr. Smidkin responded there will not be a fish market. Vice Chair Casello inquired what subculture coffee was and learned they would roast their own coffee on site and bake treats with no preservatives. People would gather there and converse. It would be a destination. Operating hours would be seven days a week from 7 a.m. to midnight and Mr. Smidkin anticipated they would employ between 8 and 12 employees. Currently they own 15 restaurants and they proposed to lease with an option to buy after three years. If that was not possible, they would purchase. Mr. Fitzpatrick inquired why they were not present to make a presentation at the last meeting. Mr. Smidkin explained they got word at the last minute. Vice Chair Casello inquired about the lease amount, which was included in the meeting backup and further learned the lease was for startup and then they would go straight to purchase. The only incentive they requested was the hood and free time at the beginning of the lease for design changes o!, redecoration. Christian Prakas for Bruce Kaplan explained they wanted to purchase the building and they had increased their purchase price to $325,000. Mr. Prakas explained he was a transactional 11 Meeting Minutes Community Redevelopment Agency Board B oynton Beach, Florida April 1, 2015 broker, authorized to represent Mr. Kaplan. Vice Chair Casello inquired if the CRA signed off on it and Mr'. Prakas responded he was not legally required to do so regarding commercial buildings. That provision only applied to residential buildings. The only incentive requested was the $45,000 interior -build out for the hood. They guaranteed to invest over $90,000, and the hood was anticipated to cost $20,000 to $30,000. Mr. Prakas explained Mr. Kaplan has a craft beer supplier from South Florida lined up, and Lou Ventura, a famous operator from Atlantic City would come down for the project in Delray. Mr. Prakas did not know which concept he would select. Mr. McCray was concerned the person would back out. Mr. Prakas explained the owner wanted a fast close as soon as the CRA could issue a contract. Mr. Merker explained it sounded like Mr. Prakas was working for the developer because he was representing the developer. He also noted the purchase offer increased. He inquired if anyone else had the chance to negotiate and increase their price. Mr. Prakas explained once Mr. Kaplan saw the documents posted on the website, he decided to raise his offer so he would have the best chance to obtain the property. Mr. Prakas did not approach anyone to see if they wanted to increase their purchase price. Mr. Merker found it disdainful he was speaking and selling for Mr. Kaplan and working for the CRA. Mr. Prakas explained he wanted Mr. Kaplan or a representative to be present, but they were not. Mr. Merker inquired if Mr. Prakas was contacted by a lobbyist or member of a City Board other than the CRA and learned he had not. Sal Campanile, explained he made an offer to purchase both 480 and 211 Ocean Avenue. He did not receive any paperwork that Mr. Kaplan increased the purchase price and explained he was only interested in purchasing the property. Mr. Buchanan asked what would occur if he could only purchase one of the two properties. Mr. Campanile explained they have $1.5 million for the two properties. He was confident he could operate both the Boynton Beach and Delray locations. , Mr. Campanile advised he has a business in Brooklyn that is very successful, and they were contemplating rolling out their restaurants in all major airports in the U.S. There would be local craft beer and wine on tap and by the glass at 480 Ocean Avenue. He planned to slightly change the building footprint. Mr. Campanile expressed air conditioned space was needed in order to have a year -round comfortable place. He was looking to add an additional 800 to 1000 square feet. Mr. Campanile also advised he does not know David Camalier. Mr. McCray liked that Mr. Campanile was local, but did not like the attack on Mr. Kaplan. Mr. Campanile explained he was not attacking anyone, but Mr. Kaplan advised he was in the business of flipping properties. Mr. Merker inquired if he would be a hands -on owner and learned he would. In response to Mr. Merker's questions whether he was contacted by a lobbyist, Mr. Campanile advised he received a call from David Katz. Mr. Katz explained he was on the Planning Board and he asked about the project and if he would like to meet, Mr. Hay inquired if he had the finances to take the project from concept to completion and learned he did. Chair Taylor opened floor for public comment. No one came forward. 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 14, 2015 Chair Taylor explained he was looking for experience and some of the respondents have it. Mr. Campanile and Mr. Mayo did and Mr. Kaplan was a developer. He wanted the business to generate activity. He thought it was good to get the properties on the tax rolls through a purchase. He liked Mr. Campanile's project and they could get it going. Vice Chair Casello supported' Mr. Campanile's plan as did Messrs. McCray and Merker. Ms. Brooks noted Mr. Kaplan raised the price, and the Board could ask Mr. Campanile if he would match it. Mr. Fitzpatrick liked that the owner lives in Boynton Beach. He liked the Master Pizza Chef designation and there were only five in the country. That criterion could not be duplicated. He advised he was leaning toward Mr. Campanile. Mr. Hay noted they just had a failure with the prior restaurant owner and did not want to get hung up on a concept. He wanted an operator to take the project and complete it. He did not want the CRA to be in a land owner position and did not want the same owner for both properties. He felt Mr. Kaplan has good financial backing and was leaning towards him. Mr. Buchanan inquired if Mr. Campanile would be agreeable to a deed restriction giving the CRA the first right of refusal and learned Mr. Campanile would not oppose it. He would also match the $325,000 offered by Mr. Kaplan. Motion Mr. Merker moved to accept the offer by Mr. Sal Campanile for 480 Ocean Avenue and open negotiations for contract approval to be brought back to the Board. Vice Chair Casello seconded the motion that passed 6-1 (Mr. Hay dissenting.) Ms. Brooks reviewed the 211 East Ocean property needs a major site plan approval by the Planning and Development Board if they were to add to the building. They would have to appear before the Historic Resources Preservation Board and the City Commission. This was not a rezoning, but it takes the same amount of time as a zoning change would. All the uses will need to be handicap accessible, including ramps and restrooms. The building needs significant renovation and the CRA budgeted $200,000 for the selected operator. The CRA obtained an independent appraisal reflecting the property was valued at $255,000. (Mr. Merker left the meeting at 8 :37 p.m.) The respondents who met the qualifications for this property were Sal Campanile, Bruce Kaplan, Rodney Mayo, Tara Sinclair, and Eric Weast, Jason Ficarra, and Kory Patrick, who would make presentations in that order. Mr. Campanile advised his concept for 211 E. Ocean was La Piazetta, which means little square or social gathering space. It would feature wood fire authentic pizza and a full -scale restaurant, open kitchen, and al fresco indoor and outdoor dining with a completely different menu. He would display an oak fired grill for steaks and seafood and they would offer homemade artisanal pastas and flatbreads. There would be a small stage with controlled sound system and a full bar with craft beer and wine. (Mr. Merker returned at 8:40 p.m. and left the dais again.) 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 1, 2015 The focal 'point would be the large oak fired grill. (Mr. Merker returned to the dais at 8:49 p.m.) Mr. Campanile announced he operates a culinary academy and workshops are booked three months in advance. This was a larger, full -scale restaurant and if the City permits it, would have at least 200 seats. Mr. Campanile reiterated he has $1.5 million to dedicate to both projects and thought most of it would be used for 211 Ocean Avenue. As soon as approval is given, he would use his mechanical, electrical and plumbing team and create a CAD (computer aided design) of the kitchen and restaurant and a 3 -D video would be brought to the Board and City Commission. Christian Prakas reviewed Mr. Kaplan's offer which was to lease to Three Horns Brewery, and they may request funds to bring the building up to Code. If Three Horns Brewery was unwilling to accept the venture with the local development company, the development company would contact other local businesses, including other CRA applicants to lease the space. If unable to secure a tenant, they would add a wraparound porch to the property, and renovate the indoor and outdoor space to open a hip tapas restaurant and lounge with a full liquor license and an intimate beer garden in the rear of the property. Mr. Kaplan expressed they were willing to give the CRA the first right of refusal if they were to redevelop the property down the road. The offer was $300K. Mr. Prakas explained Mr. Kaplan wanted to be present, and they were again acting as a transactional broker. If Mr. Campanile could not attend, they would have appeared on his behalf too.. Mr. Smidkin explained Rodney Mayo owns multiple restaurants such as Dada, Holly's Trist, KaPow, Camelot, Lost Weekend, Hugabaloo, Longboard's Restaurant and Bar and Subculture Coffee and likes establishments to be in close proximity to one another. In light of 480 E. Ocean Avenue being purchased, Mr. Mayo withdrew his proposal for 211 E. Ocean Avenue. Tara Sinclair clarified unfair misconceptions circulated about her proposal made it appear she was seeking more than she was. She had distributed a written statement prepared by her CPA to the Board to demonstrate they were financially viable. She was investing as much or more than the other proposers had, but the two differences between her proposal and the others was the amount of assistance she was requesting and the outcome her project would achieve. There was a suggestion her research on construction costs was lacking. Her calculations were conservative. In the study from the CRA in 2013, it was determined the property requires the construction of outbuildings to make proper and full usage of the property. She addressed that through four luxury suites for the bed and breakfast (B &B). Her project costs more because it addressed the actual issues. It incorporates multiple revenue streams including a beer and wine bar, a B &B, and a dynamic event space. She noted 70% of new restaurants in underdeveloped areas, such as the subject location, fail in the first two years. The project gives the local community a place to congregate in a fun, artsy downtown area. Her project provides local non- profits gifted event spaces once a month to create community alliances and outlets for charitable enterprises. The elements are a perfect match to the Boynton Beach Master Plan, Zone 3. The project will create economic spin offs apart from the project. It would hold a number of events each week, including art, social clubs and weddings. Two of the largest travel agencies, Zell and Triple A and one of the largest bridal fashion houses, Alfred 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 14, 2015 Angelo, will be clients of hers. A single destination event creates $25,000 in economic spin offs from patrons visiting local restaurants, shops, spas and the Marina. The City invested $5 million to upgrade the Marina, but sports fishermen need a place to stay. There is a huge demand for classy B &Bs and Boynton does not have one. Her proposal includes local, national and international marketing. It will have a large sophisticated crowd. It is the only project that addresses the preservation issue and the home would be a landmark destination. Ms. Sinclair received a. Facebook page response from someone on the Historic Resources Preservation Board they liked her concept. Eric Weast, and Jason Ficarra reviewed their proposal and explained craft beer is the largest growing market in the alcohol industry. South Florida was becoming a brewery hub and has had continued growth year- over -year. Between 2012 and 2014, there was a 40% increase in output of beer volume from Florida breweries. He reviewed craft beer sales increased 17.6% and accounted for about 20% of total beer sales while only taking an 11 % market share. It is a high - profit item. Mr. Ficarra:. explained the group is comprised of three friends who love to make beer. They could not buy the properties and wanted to lease and eventually buy. They do not want to fail, as this is their livelihood. They produce great beer in small quantities that would only be available in Boynton Beach. They intend to provide food options that complement their beer and create a community for millennial consumers and craft beer enthusiasts. The goal is make the best beer in the world. They were born in Boynton Beach and two of the three live in Boynton Beach. They think the downtown area currently lacks the millennial crowd they would attract and hold events on the Avenue to address tourism. Mr. Ficarra explained beer festivals attract 3,000 to 5,000 attendees, impacting the surrounding establishments and Ocean Avenue is the perfect place for festivals. Their revenue streams would consist of beer and food sales, and bottle releases, brewing events and merchandise sales. They have a site plan prepared and the historic significance of the building, combined with their plans, would be a huge draw and bring a renewed energy to the downtown. Mr. Merker commented this building is a special piece of property and there are varied venues. He wanted to table the item to give him more time to comprehend the property and plans. Motion Mr. Merker moved to table the decision on the 211 item. The motion died for lack of a second. Mr. McCray received confirmation they could not purchase the property and Mr. Ficarra clarified the offer was to purchase at fair market value after three years of leasing. They planned to have a full bar and beer and wine with meal foods or snack foods and he had already spoken with Mr. Campanile about a permanent mobile kitchen for big events. He anticipated the seating capacity would be about 150 seats in the tap room. Their request was for $200,000 plus the grant funds as needed. Ms. Brooks added the language and explained 211 E. Ocean Avenue was an $800,000 project for anyone because of the add -ons. She assumed all the Respondents would request the grants in the next fiscal year. Mr. Hay visited the site yesterday and inquired if they had conducted an assessment of bringing the building to Code. Mr. Ficarra responded his contractor had indicated it would be about 15 Meeting Minutes Community Redevelopment Agency Board Boynto Beach, Florida April 14, 2 0 1 5 $220,000 because the house was secondary to the use. They want to keep the house as historic as possible, keeping a 1920s and 1930s lounge theme and bring it up to Code with two restrooms. The tasting room would be in the back with a design to complement the interior. Mr. Hay thought adding a porch and parking may be an issue. The front did not have room for parking, but they could have parking in the back to the north off the alley and primarily rely on City lots since they do not have to add parking due to the building being historic. If they were wildly successful they would look at an industrial location to manufacture. Vice Chair Casello could see growth happening quickly and being overly successful. He inquired other than tastings, what events they would hold. Mr. Ficarra explained beer festivals are big events, where 30 or 40 breweries participate and event goers have tastings. They can use food truck events, food pairings, and small concerts or shows. Mr. Ficarra explained they invested $200,000. Chair Taylor explained their estimate to bring the building up to Code was $250,000 and those are often low estimates. He asked where the extra cash would come from if it were to cost $300,000 and the wrap around porch was $220,000. Mr. Ficarra explained they tried to obtain a detailed breakdown and got rough estimates, but was willing to take the steps to see if they could do it. Very lengthy discussion followed with all the respondents about each aspect of their proposal. Chair Taylor opened floor for comments. Chris Montague, 222 West Ocean Avenue, asked if the members received his proposal for the music school and learned the members had. He expressed his disappointment with his experience with the CRA. He commented the CRA violated their own rules, deadlines changed, and there were late submittals. As interested as he was, he hoped in the future if doing something like this, the CRA would decide what they want to do and then do it and not waste everyone's time. The realtor advertised leasing a building and there was a for sale sign in its front yard, Vice Chair Casello advised he made a great presentation and he hoped he continued to grow and stay in Boynton Beach. He hoped they could help in the future. Mr. Montague expressed he would stay in Boynton Beach, but he would not want the CRA as his landlord. No one else coming forward, Chair Taylor closed the floor to comments. Attorney Duhy clarified some Board members used the word "award ". She explained after a selection they would negotiate a contract to come back to the Board for approval. There was a final approval that would be needed later. She recommended the Board impose a deadline for the contract negotiations so it would not remain open ended, and Ms. Brooks indicated something could be brought before the Board by the next meeting. Attorney Duhy recommended a motion be made to that effect. Motion Mr. Buchanan so moved for a 30 -day contract negotiation time limit for the 480 property. Mr. Merker seconded the motion that unanimously passed. 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 14, 2015 Mr. Buchanan, due to fiscal responsibility, would support purchase of the property. He really liked Ms. Sinclair, but with the expense to the CRA for the project, he did not think it would generate as much foot traffic as a successful restaurant or brewery would. Chair Taylor liked the bed and breakfast concept and would like to find another location where it could be located. He agreed foot traffic was important. There were 300 units that would be constructed on Ocean and Federal. Mr. Campanile was highly successful. He fit the order and had the financial backing to succeed. He requested the members assist Ms. Sinclair in finding her a location Vice Chair Casello agreed with Chair Taylor. He and Mr. Campanile had spoken before and he was leaning towards him. Mr. Fitzpatrick thanked Mr. Prakas on an excellent choice of proposers. He was disappointed Mr. Mayo withdrew his proposal and thought he held the gold standard of restaurant. He thought Mr. Campanile was a good substitute and was concerned about putting all the eggs in one basket. Mr. Merker thought there was a contradiction. If the Board wanted to help someone, they should postpone the matter. He liked the B &B concept and thought they should delay the decision another 30 days. Mr. McCray liked Ms. Sinclair's project and would like to find her another location. Motion Mr. McCray moved the project be awarded to Mr. Salvatore Campanile with the 30 days to negotiate a contract to come back to the Board. Mr. Hay seconded the motion that unanimously passed. XIV. New Business: B. Consideration of Resolution No. 15 -02, Budget Amendment #1 FY 2014 -2015 Motion Mr. Buchanan so moved. Mr. McCray seconded the motion that unanimously passed. C. Consideration of Request from Morgan Boynton Beach, LLC to Change the Entity Name This item was addressed earlier in the meeting. D. Consideration of Purchase Agreement between the CRA and Vonerick Capital Partners, LLC in the Amount of $130,000 for Property Located at 515 NE 1 St Street Motion Mr. Merker so moved. Mr. McCray seconded the motion that unanimously passed. 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 1, 2015 E. Consideration of Approval of Conveyance of Property and Closing Documents for the property located at 480 E. Ocean Avenue from the City of Boynton Beach to the Boynton Beach CRA Motion Mr. McCray moved to approve. Mr. Merker seconded the motion that unanimously passed. XV. Executive Director's Report: A. New Businesses in CRA District There were no comments on this item. XVI. Future Agenda Items: XVII. Adjournment There being no further business to discuss, Chair Taylor properly adjourned the meeting at 9:57 p.m. O f f Catherine Cherry Minutes Specialist 041515 18