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Minutes 08-11-15 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD ON AUGUST 11, 2015, AT 6:30 P.M., IN CITY COMMISSION CHAMBERS CITY HALL, 100 E. BOY BEACH BOULEVARD, BOYNTON BEACH, FLORIDA Present: Jerry Taylor, Chair Vivian Brooks, Executive Director Joseph Casello, Vice Chair Tara Duhy, Board Counsel James "Buck" Buchanan Michael Fitzpatrick Woodrow Hay Mack McCray David Merker Call to Order I. Invocation and Pledge to the Flag Mr. Hay gave the invocation and led the Pledge of Allegiance to the Flag. II. Roll Call Roll call revealed a quorum was present. III. Legal: A. Memorandum - Foreclosure Actions Involving CRA HAP Loans Attorney Duhy explained the memorandum was for information only. There have been foreclosure actions regarding the CRA Housing Assistance Program (HAP) loans. The memo contained recommendations to follow should future HAP loan foreclosures arise. IV. Agenda Approval: A. Additions, Deletions, Corrections to the Agenda Mr. Merker pulled Item E from the Consent Agenda. B. Adoption of Agenda Mr. Hay moved to approve the agenda as amended. Mr. McCray seconded the motion and noted they were working from the amended agenda. The motion unanimously passed. Meeting Minutes Community Redevelopment Agency Board B oynton Beach, Florida August 11, 2015 V. 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 Mr. Buchanan had no disclosures. Mr. McCray received a phone call yesterday from the Related Group indicating that a Board member told him to call him. Mr. McCray did not speak with him and requested no one direct anyone to contact him. He also received a call from Attorney Michael Weiner and he ended that conversation. Mr. Merker disclosed the same thing occurred with him and the Related Group. He had a 30- second conversation and that was it. Vice Chair Casello met with representatives of the Related Group. Mr. Fitzpatrick disclosed he met with the Related Group. Mr. Hay advised on July 16, 2015, he attended the Board of Directors Chamber of Commerce event. On July 31, 2015, he met with the Team of Hope to help convicted felons integrate into mainstream society. He attended the CRA Budget Workshop on August 6, 2015, and met with developers from the Auburn Communities and the Related Urban Group on August 7 th Chair Taylor met with the Related Group and the Housing Trust. Under Informational Announcements, he wanted to read two letters he received. One letter was from the Office of the Attorney General, Bureau of Advocacy and Grants Management, advising the City will be awarded a $56,595 Victims of Crime Act Grant for the 2015/2016 cycle. The City's agencies that provide services to crime victims were the key factors used in awarding the grant to the City. Chair Taylor thanked the Boynton Beach Police Department for all they do. He acknowledged the grant was a lot of money and its receipt was due to the Police Department's efforts. The next letter was from a company placing a public records request, praising the City Clerk's staff in the manner in which they responded to Peter Toroscik's request. Chair Taylor complimented the Clerk's office for outstanding service. Mr. McCray commented he requested information about Music in the Park attendance and advised he would like a hard copy in his mailbox. He also announced when leaving the grocery store, he was approached by a young man who was familiar with the Team of Hope. He reported the Team's efforts were acknowledged and appreciated. B. Informational Announcements: None 2 Meeting Minutes Community Redevelopment Agency Board Boyn Be Fl orida Au gu s tll,2 015 VI. Announcements & Awards: A. Florida Festivals & Events Association (FFEA) Awards Tracy Smith - Coffey, Marketing and Business Development Specialist, advised they won four awards at the Florida Festivals and Events Association (FFEA) Conference. She announced there were over 500 entries and the CRA won first place for a promotional item for the Pirate Fest, which was the pirate/ treasure map and a treasure chest participants could win in a drawing. The CRA won first place for their public relations media campaign for the Pirate Fest. They won second place for the radio ad they used for the Pirate Fest and third place for the Pirate Fest street banners. She and Christopher Burdick, CRA Special Events Coordinator, were happy to accept the awards. She announced next year they plan to get more. Chair Taylor congratulated them. He thought one award was great; but four was outstanding. Ms. Brooks praised her team. VII. Consent Agenda: A. Approval of Minutes — CRA Board Meeting, July 14, 2015 Chair Taylor noted the minutes reflect Attorney Duhy was present, but it was Attorney Dodge. Motion Mr. Merker moved to approve as amended. Mr. McCray seconded the motion that unanimously passed. B. Approval of Period Ended July 31, 2015 Financial Report C. Monthly Purchase Orders D. Approval of Commercial Facade Grant to Scobee- Combs - Bowden Funeral Home located at 1622 NE 4 th Street, Boynton Beach, FL E. Approval of Commercial Facade Grant to Octavia Bell as Owner of the Property Located at 1213 NW 4 th Street, Boynton Beach, FL- Cherry Hill Mini Market Mr. Merker pulled this item. VIII. Pulled Consent Agenda Items: 3 Meeting Minutes Community Redevelopment Agency Board B o y nton each, Florida August11,2015 E. Approval of Commercial Fagade Grant to Octavia Bell as Owner of the Property Located at 1213 NW 4th Street, Boynton Beach, FL- Cherry Hill Mini Market Mr. Merker announced he had no problem with this item, but he wanted to ensure it was done properly. He wanted signs installed prohibiting loitering, litter or trespassing and a signed statement with the Police so they could enforce the provisions. Mr. Fitzpatrick agreed it was a tool the Police could use. Mr. Hay inquired if this was legally allowed and thought the property owner had to give permission. Mr. Buchanan inquired if it was a condition of approval and Mr. Merker advised it was. Discussion followed whether the condition could be imposed. Attorney Duhy explained they could add a condition that the applicant make every effort to install the signs. The applicant would have to apply for and pay for it. Octavia Bell, the property owner and applicant, explained there are signs on the premises regarding loitering and trespassing, and she had already signed an agreement with the Police Department. She questioned why it would be a stipulation to her receiving a fagade grant to beautify the building. Mr. McCray pointed out Ms. Bell's sister previously operated the business, but Ms. Bell had taken it over. There has been much improvement at the mini -mart since then, and he thanked her for addressing the problems. Mr. Hay agreed to some degree this could prevent future issues, but commented in America, property owners have rights. Since Ms. Bell already addressed the matter, it was a moot point. Mr. Buchanan acknowledged the issue was already addressed, but it should be a consideration with future requests. He also recognized in America, the CRA could not force people to put signs on their property, but the CRA was not obligated to fund any request. Motion Mr. McCray moved to approve. Mr. Hay seconded the motion that unanimously passed. IX. Information Only: A. Public Comment Log - None B. Marketing and Business Development Campaign There were no comments on this item. 4 Meeting Minutes Community Redevelopment Agency Board B oynton Beach, Florida August 11, 2015 X. Public Comments: (Note: comments are limited to three - minutes in duration) Chair Taylor opened the public comments. No one came forward. XI. Public Hearing: None XII. Old Business: A. Consideration of Agreement for Real Estate Broker Services between the CRA and Anderson & Carr, Inc. Ms. Brooks explained this was a follow up item. The Board selected Anderson & Carr at the last meeting and after Legal reviewed the agreement, it was ready to be signed. Mr. McCray commented finding someone to handle the real estate brokering has been trying, and he was glad Mr. Snitkin, Anderson & Carr, agreed with what the CRA was trying to do. In the past there was backlash and he would hold Anderson & Carr accountable. He wanted to get the most "bang for the buck." Vice Chair Casello inquired about advisory services at $200 an hour. Mr. Snitkin, responded that would be used for special consultant projects such as research regarding an acquisition. He gave an example of a special consultant project that occurred in Delray Beach. Vice Chair Casello asked if the Board requested Mr. Snitkin purchase property for them, if they would be charged and learned it was part of the deal. Motion Mr. Merker moved to approve. Messrs. Buchanan and Hay seconded the motion that unanimously passed. B. Consideration of Letters of Intent for the Ocean Breeze East Site — Tabled July 14, 2015 Motion Mr. McCray moved to remove the item from the table. Mr. Hay seconded the motion that unanimously passed. Mr. McCray queried why Related Urban was added to the agenda. Ms. Brooks explained this item was not an RFP. It was a public - private partnership they are seeking with developers. The Board opted to use the private marketing of the property on LoopNet and staff did not want to preclude them from making a presentation. There is no deadline. 5 Meeting Minutes Community Redevelopment Agency Board Boy nton each, Florida August 11, 2015 Mr. McCray explained he received a call yesterday from Related Urban. He would have preferred the Board members be given early notice. He has a problem with the way things are given to the members. Ms. Brooks explained their name was left off the agenda item, but the backup was included. a. Centennial Management — five - minute presentation Vice Chair Casello requested leeway from the five - minute presentation requirement. Elizabeth Roque, Centennial Management, thanked the Board for the opportunity to make a presentation. They believe they could restore and update the housing they need while keeping integrity of its historical landmarks. She introduced Alberto Urrechaga, Lewis Swezy, and Kimberly Mitchell. She reviewed their handout and provided the history of the firm. They have experienced developers building over 3,000 residential units and 900,000 square feet of commercial, retail, and industrial space. They take pride in managing their properties. Mr. Urrechaga reviewed some of their recent developments, and what they planned for the Ocean Breeze project. He noted often when building these types of projects, they sometimes lose the translation between building the project, managing it and maintaining it. The members reviewed the firm's financial strengths and learned the firm deals with the Florida Housing Finance Corporation. They are bonded up to $100 million. Each year, they receive awards for the beauty of their communities and compliance. They listed some projects and interior photos were viewed as were two communities. When they studied the project areas, they determined they needed to bring a lot of attention to the community to incorporate mixed - income housing. They planned to have a fully -gated community and would follow whatever guidelines the Board and the community wants. They had originally offered $1.8 million for the property and raised it to $2 million. Site plans were reviewed. They would add six -foot sidewalks, street parking and lighting. All their communities are green and they follow the required guidelines. Some of the features found in their communities were listed and it was pointed out they use the National Green Building standards. Mr. Urrechaga reviewed the tenant programs offered were after school programs, literacy training and employment assistance programs, or whatever else was wanted. They will contribute $250,000 for the CRA Board to use to improve the surrounding areas based on community input. They could beautify the surrounding areas. They want to donate a playground set to a local area and do many things for the community outside of their project. They have the financial ability to come in and close immediately after receiving underwriting and Board approval. They would not have to wait for housing fund assistance. 6 Meeting Minutes Community Redevelopment Agency Board B oynton Beach, Florida August 11, 2015 Mr. Swezy confirmed they were willing to close within 15 days with corporate funds. By acting as the general contractor, they can conduct community outreach and obtain minority contractors and participation to support the local community and Palm Beach County. The $250,000 donated to the CRA Board would be taken from their developer fee. Mr. Merker inquired how tall the project would be and learned it would be three stories. Vice Chair Casello asked if the project as proposed incorporated a medical facility for a doctor. Mr. Swezy responded there is a retail component on the north end of the site, and they were open to suggestions. They had considered it and could incorporate a doctor center or healthcare facility. The development would not be limited to aged 55 and over occupants. It would include working families with a one bedroom component. Mr. McCray wanted to ensure they had the funds for the development, and they would not rely on tax credits, but learned they would apply for tax credits. Mr. Buchanan inquired if the project would still be feasible without the 9% tax credits and it was learned it would not be without some subsidy, such as 4% bond credit application and another layer of subsidy usually from the County or state surtax which is not as competitive as the 9% tax credits. Mr. Buchanan learned the firm had successfully competed for the 9% tax credits and they constructed about six or seven developments with them. Vice Chair Casello inquired if they would look for concessions from the CRA if they used 4% tax credits, and Mr. Swezy could not definitively respond. Vice Chair Casello questioned why the firm upped the offer from $1.8 million to $2 million. Mr. Swezy responded they ran the numbers and did the site plan, and saw they could offer the funds. They did not mind giving part of the developer fee to the City and surrounding neighborhood. Mr. Swezy commented he felt at a disadvantage about not meeting with the members before the meeting as some of the other developers and thought there was a cone of silence. Mr. Hay asked if the gated community was an option and learned Centennial Management was open for suggestions. B. Housing Trust Group — five - minute presentation Michael Weiner thanked the Board for the opportunity to present on behalf of the above group. He introduced Matthew Rieger, President and Chief Executive Officer, and Allan Schnier, Vice President of Development for the company. Mr. Rieger explained they have a highly experienced team in the affordable housing businesses. Combined, the team has completed over 22,000 residential units and more than one million square feet of commercial space. He is a third generation Floridian and an attorney. He gave his family history and explained the Housing Trust Group (HTG) is 7 Meeting Minutes Community Redevelopment Agency Board B oynton Beach, Florida August 11, 2015 a family business committed to providing affordable communities residents can call home. Their mission is to provide the highest quality of work, service, and care in a professional environment and ethical manner. Since 2002, they constructed 12 new communities in Palm Beach County comprised of nearly 2,000 multi - family units and $200 million of investment in the County. In the last three years, they were awarded 9% tax credits for seven new developments, including Green Cay Village, the largest workforce mixed income development in Palm Beach County. The HTG can construct Ocean Breeze East timely and on budget. He conveyed the firms guiding principal as their assets are their people and their reputation. If either is diminished, the last is the most difficult to restore. HTG' s reputation and his family's good name is his guarantee. Mr. McCray inquired how long Mr. Schnier was with the company and learned it was since May 2015. Alan Schnier thanked the Board for the opportunity to present HTG's vision for the Ocean Breeze East community. They planned to develop 110 multifamily residential units with one, two and three - bedroom units. The goal is to meet the CRA's need and they will be out in the community holding public meetings with residential groups to explain their vision for the site. When developed, the community will meet all green standards and requirements of the Florida Housing Corporation and what they, as a developer require. They have been involved in Palm Beach County for years and their commitment is to build a first -class community to cater to residents and the community's needs. He was involved in this process since the first RFP was issued and they are pleased to present their vision. Mr. McCray inquired if anyone asked the CRA for the plans they wanted for that community. Ms. Brooks responded they were referred to the Heart of Boynton Plan update and this project conforms to that Plan's design guidelines in height and density. They were all given a copy of the Plan. Mr. McCray commented they had already determined they wanted clubhouses, doctors' offices or medical clinic. Chair Taylor noted Mr. Schnier worked with the County and had experience getting the tax credits. Mr. Schnier confirmed he did and before his present position, he won tax credits in Delray Beach, Lake Worth and a few bond deals underwritten by the Florida Housing Finance Corporation, so they have many years of experience. At one time, he served on the Board of Directors of Coalition of Affordable Housing Providers for eight or nine years. Chair Taylor noted security was listed as a project amenity. Mr. Schnier explained the community will be a gated community, typically where residents will have a card and key to drive through a card entry. Visitors will have to call in. , A 24 -hour guard is very expensive. They can open discussion regarding the gate, but are concerned with security and safety of the residents. If the residents do not want a gate, they will consider. 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 11, 2015 Mr. McCray commented when Mr. Schnier worked with the Palm Beach County Housing Authority he worked in Belle Glade and there was bad blood there. Mr. Schnier differed. Vice Chair Casello inquired if he ever represented a company in Boynton Beach to secure a project for MILK. Mr. Schnier explained the company decided in February they did not want a South Florida representative and they terminated the contract at the same time his mother passed away. He later contacted the Rieger Family. The family is composed of first -class people and it is a first -class development company. Vice Chair Casello inquired if there was a Plan B and inquired if they would also seek 4% tax credits. Mr. Schnier confirmed they would. When asked if they would look for concessions from the CRA, Mr. Schnier responded they would not. Mr. Fitzpatrick inquired who the company worked with regarding Green Cay Village and Mr. Rieger responded it was a joint venture with Gray Properties and the Housing Trust Group. It was a public- private partnership as the Green Cay Village land owner had chosen them to be their partner. Mr. Merker commented Centennial Management and the HTG have the experience to build the development. Mr. Hay inquired if they have been awarded 9% tax credits and learned they received the most awards for the 9% in the State of Florida. C. Related Urban Group Alberto Milo, Principal, Related Urban Group, thanked the Board for the opportunity to present their proposal. He reviewed the history of the firm. The Related Group was founded in 1979 initially focusing solely on affordable housing, and they are the largest multi - family and condominium developer throughout the State. They developed Marina Village in Boynton Beach and purchased the Casa Costa project. The focus is on affordable and mixed - income housing and he is in charge of the Affordable and Work Force Housing Division. They developed over 20,000 affordable and mixed - income units in Florida. The Related Urban Development Group, founded in 2002, focused on revitalizing urban communities and they specialize in public - private partnerships. They take a grass roots approach and work with the communities and elected officials. Rather than try to impose their vision, they want to ensure they will implement what the community wants. They just completed 800 units for Miami Dade public housing, requiring extensive dialogue with the residents to ensure they had consensus prior to renovating the units. They have held public charrettes and they want to engage the Board and community to implement their vision for the community. 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 11, 2015 They reviewed the initial plan and their vision was a green and open design for new urbanism to ensure parking is hidden. The natural approach is to always gate the community, but it has not always been the best approach for pedestrians. Sometimes gates isolate the neighborhood as a whole. They will meet with the CRA when final input is received, and their proposal was a four -story development with 120 units. The site plan has a u- shaped design with a courtyard integrated with low -rise apartments on the south side of the property. All of their communities have a green designation and they have a consultant who handles this. They have a sister affiliated company which is a general contracting entity which allows them to complete projects on time and under budget. They had six tax credit developments and finished under budget. They also returned tax credits which is rarely done. Mr. McCray inquired about returned surtax money to Miami for one project in the amount of $700,000. One another, they returned over $200,000 in tax credits to the State. Each one was different. Mr. Milo explained they place emphasis on local hiring. Since they have an affiliated general contractor, they could directly negotiate with local subcontractors who give a guaranteed maximum price. They could build a community for a set amount. Being a general contractor, they maintain control and help as many minority subcontractors as possible. Vice Chair Casello inquired how much local labor was used to build Marina Village. Mr. Milo did not know because it was not part of his division. He offered to forward the information to Vice Chair Casello. Mr. Milo spoke about the project amenities and advised they will have a community room, fitness center, a library, computer room and wellness center. In all of their recently completed properties, they have wellness centers because they understand residents do not always have access to quality health care, so they include it on -site. They will also have an affiliated property management division, giving them the ability to control their costs and hiring. They have over 10,000 affordable housing projects, regional and on -site managers and property maintenance workers at each community. They will have social workers and staff that can implement some of the wellness and health services for residents. They have after - school programs run by the property management division. Health care services are operated out of the wellness center area. Mr. McCray inquired if field trips were based on need or if there was a cost. Mr. Milo explained they have resident services staff to handle that in- house. The initial financing plan is to apply for 9% tax credits. It is the most lucrative financing program and highly competitive. In the last two cycles, project selection was lottery based. There was discussion about local governments setting a preference and investing $535,000 to show the Florida Housing Finance Corporation they are serious 10 Meeting Minutes Community Redevelopment Agency Board B oynton Beach, Florida August 11, 2015 about the project. The last time they had a merit -based system, they had six developments funded. They received over $100 million and several applications funded after that. Plan B would involve 4% tax exempt bonds and additional gap funding. They would seek to close that gap via the State HOME program. Later in the year, the SAIL Program will be available and they could obtain gap funding there, although there were no SAIL or HOME projects funded in the County last year. Vice Chair Casello inquired if they would approach the CRA for concessions if they cannot obtain gap funds. He noted rents are dictated by area median income. Using 4% would create a financing gap, and one would have to be creative to close it. In the last two years the Related Urban Group closed five different bond deals and they pieced the gap together. They may not get all the funding from one source. They have to mix and match the financing. He emphasized they can build less expensively than their competitors because they control the construction site. If the project is less expensive the gap is smaller and easier to fill. Photographs of recently completed projects were viewed. They purchased the Casa Costa. Vice Chair Casello inquired what they were doing to fill the empty store fronts. Rick Fortenbury was in charge of that project. They completed the sales of the condominium units and they have two or three leases for the retail space and were actively marketing the retail to see how they can generate tenants. They recently experienced an influx of some tenants that moved out of the Delray Beach area, but they have not generated the right type of tenant that can afford the rents or the build out concessions. Vice Chair Casello thought it was great they opened the garage to pass through to the store fronts and would like to see them more aggressively market the store fronts. It was important to get the store fronts filled and Mr. Milo agreed. They will work to push that issue. Mr. Merker inquired if they were involved with Auburn Development in Delray Beach. He commented Auburn has a track record of financial instability. He questioned if they were so successful, why use such a company when the CEO had his license revoked. He asked if David Katz was used as a lobbyist and was told he was not. Mr. Milo explained Auburn's finances have no bearing on this project. Auburn only made them aware of the opportunity and was not part of the ownership entity. Mr. Hay inquired where registered nurses would make home calls and learned they included wellness centers in other developments and they were in active discussions with major health care providers who want to bring these services on site. They are not in the medical field, but they could provide the space for it onsite. One health care organization was national; the other just was acquired by a national entity. Mr. Buchanan requested confirmation they would be dealing with the Related Group, but learned they would be dealing with the Related Urban Group. Mr. Milo explained 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 11, 2015 the Related Urban Group was the entity that was a joint venture with the Related Group and the Related Group is the managing member or the Corporation. Mr. Buchanan was not in favor of a gated community unless the residents want one. D. Westbrook Center, LLC — 5 minute presentation John Dupont, Director Affordable Housing for Westbrook Center, LLC, advised the presenters all have excellent projects. The concepts of urban design, high efficient resident services are standards in the industry. Florida Housing guidelines steer them in that direction. He was impressed by the community and the CRA. He comes from the Midwest and completed projects in rough neighborhoods in Michigan. He complimented the community leaders. This is a great opportunity to partner. He advised they have tax credit developments in Pasco County and the City of New Port Richey. The site plan was viewed and was subject to change. A photograph of the Pasco County project had over 100 units. They are builders who got into tax credit developments as a diversification. He is a general contractors and the product is their success. They build the best product ovailable. The project is in a typical urban setting and he sees the potential and vision and all that is needed is the right people and development. (Mr. Merkerleft the dais at 7.47 p.m.) Mr. McCray inquired if he had been to the project area and was concerned that Mr. Dupont indicated he worked in much worse neighborhoods than this one. He requested clarification and Mr. Dupont commented he was concerned about the proposed density. He thought the density was very ambitious for a 4.5 acre parcel. Traffic control is a consideration and a secondary entrance other than Seacrest may be needed. It will be an open process. He stressed the complications of working with the Florida Housing Finance Agency as they have to reach a threshold to qualify for the lottery and after that, funding is lottery- based. Everyone has an equal chance in the competition, but they have to be careful working with Florida Housing because it was likely, only one project would be funded in Palm Beach County, and it is their role to eliminate the competition. He advised they have experience in that and they work in multiple states which strengthens their capability. Vice Chair Casello inquired if they had any experience in developments in Palm Beach County and learned they did not. Their office is in Jacksonville. They applied for the 9% tax credits and they funded two projects through them. They never had a vacancy. The rents ranged from $400 to $600. Vice Chair Casello inquired if they did not receive the 9 %, if they could construct the project with the 4% credits. Mr. Dupont explained there is the challenge of the gap. Mr. Dupont explained the developer cannot fill the gap. They have to seek HOME, SAIL and federal funds. They have worked with 4% credits and filled the gap with HOME and neighborhood stabilization funds. 12 Meeting Minutes Community Redevelopment Agency Board B oynton Beach, Florida August 11, 2015 (Mr. Merker returned to the dais at 7:49 p.m.) Mr. Buchanan asked what kind of services would be offered when occupied and learned the company is not in management business. They work with Royal American, who has resident services staff that work with medical, counseling and job placement. Mr. McCray appreciated the presentation. Mr. Fitzpatrick commented LoopNet worked out well and the four candidates were well qualified. It was the best selection they ever had. He commented he would not count on the 9% tax credits. The average time is four months to find financing which was standard. Ms. Brooks explained the Florida Housing Finance process will be the same for all of the presenters. Some of the presenters wanted to close and get other financing from the bank. Centennial Management indicated they would close when they have the underwriting completed. The rest would wait until they got their permanent financing in place. Ms. Brooks explained it could be six months for the second element of the financing. Mr. Fitzpatrick inquired if anyone spoke about TIF funds. Ms. Brooks explained if they use the 4% and not the 9 %, it could be revisited. It could result in the price of the property being reduced, receiving Tax Increment Financing (TIF) or a combination of items such as utility assistance. She pointed out it is a negotiated element. Related did indicate TIF could be used as a gap filler if 4% was received. It would be difficult because there are many layers of funding from different entities. Mr. Fitzpatrick was familiar with Auburn Development, who constructed Boynton Bay, and commented he was always impressed with how well Auburn managed the development and how well built it was. His problem was everyone was good and the decision would come down to small things. As to Green Cay, there were articles about the development and housing. His wife was impressed with management there. In order for the presenters to meet the proposed November 5 deadline, the Board had to make a selection, and bring the agreement back at the next meeting. Vice Chair Casello thanked all for the presentations and thought they were great. He liked using local contractors and their being sensitive to some of the amenities the Board and community wanted and that they had a Plan B. He advised all did a wonderful job. Mr. Merker thought experience and financing was the key and who you relate to and work with is vital. When you lose the 9% tax credit, it is up in the air and it is all negotiable. Mr. McCray asked how long a wait to find out if they would be funded and learned it would be in May. There would be a few more months involved in other financing. 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 11, 2015 Mr. Hay thought there were good candidates and anyone of them could do the job. His final decision will be based on experience and stability. Chair Taylor liked all the proposals. He agreed with Mr. Fitzpatrick and also thought Boynton Bay was an outstanding and well managed community. He was interested in people with local knowledge of the community. The Housing Trust Group worked on a lot of the projects with the County and the tax credits as has the Related Urban Group. He thought it was obvious what they did with Marina Village and Casa Costa and they did incredible top notch work. He favored the Housing Trust Group and Urban Related. Motion Mr. McCray moved to award to the project to Related Urban. Mr. Hay seconded the motion that passed 5 -2, (Messrs. Merker and Fitzpatrick dissenting.) C. Project Seahorse Presentation (Mr. Merker left the dais at 8:06 p.m.) Tracy Smith - Coffey, Marketing and Business Development Specialist, gave a brief presentation about Project Seahorse. This was a collaborative project with the CRA, and the City and County Parks and Recreation Departments. They started the process a few months back and thought it was a great fit for Boynton Beach because they have the Marina. One goal was to show the community, the Marina is family friendly. (Mr. Merker returned at 8:07 p.m.) Thirty -six youth went on a snorkel excursion with the Loggerhead Dive Charter, Calypso of the Palm Beaches and Splashdown Divers. The youth worked very hard, and some had never been on a boat. The kids were extremely well behaved and so excited about what they accomplished. They learned how to swim and snorkel from Florida Free divers. On the day of the excursion, the weather was perfect, the water was calm, and the youth could see the shipwreck. All 36 youth were in the water. The youth were then bused to the Boynton Harbor Marina where parents came to pick them up. The youth were all smiles and got to keep their equipment, donated by Splashdown Dive Centers. A quote from a parent said, "You really are changing people lives. All my son wanted to do was play video games all day. Now he is begging me to take him to the beach and the pool all of the time. What you are doing is wonderful." Chair Taylor attended the closing ceremony and thought it was a tremendous experience for the kids and a great program. Mr. Merker agreed. He thought a lot of the kids were afraid to try to swim, but afterwards could not wait to do it again. Ms. Smith - Coffey advised they were looking forward to next year and they will have more sponsorships next year. 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 11, 2015 Mr. Hay commented these are the types of projects that make Boynton Beach stand out. The members watched the video of the event. D. Consideration of Purchase and Development Agreement for 480 East Ocean Avenue Ms. Brooks explained the CRA received an offer from Richard Lucibella and his partner Barbara Ceuleers for 480 East Ocean and an offer from Bruce Kaplan for both properties. Mr. Lucibella wanted Lisa Mercado who owns The Living Room on Congress Avenue, to operate the Little House and Mr. Kaplan indicated he would work with local businesses for them to be a tenant. Mr. Lucibella gave the entire purchase price to Lewis Longman for an escrow account and Mr. Kaplan gave a 10% deposit for each property to his attorney. Mr. Merker inquired if the business would be a replica of the Living Room. Russ Bornstein, 20944 Pacifico Terrace, Boca Raton, CBRE, explained Mr. Lucibella lives in Ocean Ridge, but he could not be present and requested he attend in his place. Mr. Lucibella and Ms. Ceuleers own nine properties in Palm Beach County and some historic properties. They would be financial partners and Lisa Mercado, the Living Room owner, would be their operational partner, offering eclectic food and tapas and local vegetables and an herb garden. One reason Ms. Mercado would be the perfect partner was she has an existing restaurant in Boynton Beach. The Little House does not have a kitchen; however, Ms. Mercado has an existing kitchen in her Congress Avenue location. Food would be prepared there and driven over and finished at the Little House. Ms. Mercado opened her business in 2009, when no one was opening restaurants, and was successful and continues to be successful. It was important to have a success at the location. Lisa Mercado, 9930 Pineapple Tree Trail, and resident since 1983. They opened the Red Lion Pub in 1985, and opened the Living Room in 2009 which was later expanded. Her concept for the Little House would be very different, mostly tapas and fresh salads. She would love to add a small greenhouse to the property and have herbs and source local produce. She does work with the Community Caring Center and will help with one of their big events. She does charity work for the Library and the Schoolhouse Children's Museum and frequently donates cooked goods, wine or gift certificates. Her staff lives in the local area, and thought she could make a positive contribution. She passed on this project in 2010 because the Living Room was a few months old and she needed to focus on its success. The food would have to be driven over from the Living Room and heated using convection ovens. She planned for either a breakfast and dinner or lunch and dinner menu. Many groups use the Living Room and some groups are smaller. It would be too costly for these groups to meet at the Living Room, but she could accommodate them at the Little House. She provided her background in the business and her many accomplishments dating back to 1983. She wanted to return to Boynton, so she sold the establishment and came back to Boynton Beach. Chair Taylor 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 11, 2015 asked if there was a way to enlarge the restaurant to accommodate a kitchen facility. Ms. Brooks explained she met with other interested parties who wanted to add one, and it was a possibility. Mr. Hay inquired if she would change the seating and learned Ms. Mercado would like to see a smaller bar and the banquet could wrap around. She would like to see the outside area glassed and she would like to fence in the area along the sidewalk so people felt safer eating outside. Mr. Buchanan inquired how long until she would be up and running. Ms. Mercado responded she opened the Living Room in a month and added an annex to one of her pubs in a month. She would sell beer and wine. The place had an amazing tap system, but too many for a small space. She would like to use some for wine and fermented tea. She reiterated she would like to have an herb garden and if allowed, a small greenhouse for hydroponic vegetables. She commented she is involved with the Community Caring Center and they do amazing work. Tom Prakas, 715 Fox Point Circle, Delray Beach, Prakas and Co., broker for the 480 and 211 properties explained they handled this property for seven or eight months and wanted to be forthright about who they are bringing forward. They were representing Bruce Kaplan, who had wanted to acquire both locations, but would accept one location if necessary. He has a concept and experience, and they operate restaurants in Delray. They are from Philadelphia, but two partners and the general partners have residences in Casa Costa. They are very savvy restaurant operators and developers. He was aware the Board preferred a Boynton Beach resident operate an establishment. Mr. Prakas noted in Delray Beach, a lot of the people and talent come from other areas and they bonded to make Atlantic Avenue what it is. They need to have people with the backing and knowledge to make the locations successful. Mr. Kaplan preferred both properties to make an impact on the area. He pointed out they own D'Angelo's in Delray Beach, they are under contract for the Frog Restaurant. Tom Carney explained he served on the Delray Beach CRA in 1981 and they looked for experience, finance and commitment. He was proud to represent Bruce Kaplan and advised they put together The Office and Max's Harvest in Delray Beach. They are committed to coming into Boynton Beach. They join with the community and will be great partners. He requested they take over both properties. Mr. Kaplan would have been present last month, but was told he did not need to be here. Bruce Kaplan, 8 Cypress Point Ct., Blackwood, New Jersey, apologized for his absence last month and clarified he did not realize they were still in the running. They developed many restaurants and were operating 14 restaurants in the Philadelphia area. One was a movie set which they developed, designed and operated for $16 million. They are a strong company and he referred them to their website. They have sold over 280 different projects in the last 24 months. 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 11, 2015 Vice Chair Casello asked how many properties were in the general area. Mr. Kaplan explained the strongest part of their company acquires land, develops it, including all the planning, zoning, engineering and architectural components to produce shovel ready properties. In addition to that, they have vast experience in restaurant development, marketing and operations. He listed the restaurants they operate. They were offering $255,000 for the 211 property for an upscale Italian restaurant. Mr. Merker asked about the time table to open a restaurant. Mr. Kaplan explained the smaller property would need a kitchen, but it would be operating immediately. He explained they build quickly. For the 211 property, the engineering could be done within 90 days and constructed within the following 90 days. The Little House would be designer pizza hoagies, and salads and the 211 would serve lunch and dinner Mr. Hay asked if it would be a deal breaker if they did not obtain both properties and learned it would not. Vice Chair Casello noted Ms. Brooks had previously indicated it would be unwise to sell both properties to the same owner. Ms. Brooks responded her suggestion was not to sell to the same end user, because if it failed it would fail at both locations. She explained if you want to sell both to a developer, it would be a better solution than the same operator. They need an operator and Mr. Kaplan confirmed they would not have the same operator. Mr. Merker was not opposed to two owners, but whoever had the money was the key. Mr. Kaplan explained they have been doing this for 20 years and they do not fail. For the speed of generating revenue, if they had to select one of the two properties, they would prefer the Little House. The 480 Ocean Avenue property was appraised at $335,000 and they offered $325,000, but could go to the full appraised value. It was noted Mr. Lucibella and Ms. Ceuleers also has capital readily available. They have no problem with expansion and acquisition. His company sold in excess of $25 million. They do this because they live in the area and it was important they contribute back to the community. They have the utmost faith in the Living Room and have been involved with Ms. Mercado over 30 years and they want to give her next establishment, a hand up. Motion Mr. Buchanan moved to award 480 Ocean Avenue to Mr. Lucibella and 211 Ocean Avenue to Mr. Kaplan. Vice Chair Casello seconded the motion. Attorney Duhy suggested the wording of the motion be to negotiate a purchase and development agreement with them. Mr. Buchanan agreed to the language as did Vice Chair Casello. The motion unanimously passed. 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 11, 2015 Mr. Buchanan thanked both parties for their interest in Boynton Beach and they will do all they can to help them be successful. He noted there may be more opportunities on Ocean Avenue. Vice Chair Casello thanked Mr. Kaplan for taking a second look at Boynton. XIII. New Business: A. CRA Executive Director Annual Performance Review Motion Mr. McCray moved to not extend the contract for the Executive Director Vivian Brooks. Vice Chair Casello seconded the motion. Mr. McCray explained one reason he did not favor a renewal of the contract was because he felt Ms. Brooks has lost the vision for the CRA in Boynton Beach, she lost the vision for the HOB, and because they do not have the material they need for proper decisions, as sometimes it was withheld. Vice Chair Casello explained the overall rating of Ms. Brooks was 3.8 and 4 was meets expectations. He would like to see the director position go to someone with a new vision and move the CRA in a new direction with less fumbles. He commented they have trudged along and 211 and 480 Ocean Avenue were examples of losing an opportunity. These issues accumulate and his decision was based on those things. Chair Taylor thought being an Executive Director of a CRA is a very tough position. They have seven bosses who may go in different directions and then have to deal with developers who sometimes do not receive all they want and think the Executive Director stands in their way. Ms. Brooks has done a lot of good and there is a list of items that were accomplished under her supervision. There were hiccups. He also believed what was important to the development community was the Executive Director have the backing of the entire Board, otherwise it makes it very difficult to do that job. He was not sure Ms. Brooks would want to continue if she did not have 100% backing of the Board. Mr. Buchanan could not say enough things that Ms. Brooks accomplished and the items planned and done. The City has greatly improved and is about to explode. He pointed out the four developers coming in for Ocean Breeze East and the restaurants. There were hiccups, but some of them were Board hiccups. He commented they need continuity. She has a high quality staff and her leadership cannot be questioned. There are all kinds of developers out there, good, bad and ugly. There are ghost developers and semi -ghost developers. None of those things were the Director's fault. She has the respect of developers. He thought anyone who attended the meetings would see that 18 Meeting Minutes Community Redevelopment Agency Board B oynton Beach, Florida August 11, 2015 no one would have 100% backing of the Board. He felt she is the best person to lead this effort forward. Mr. Hay agreed with Mr. Buchanan. He questioned if it had occurred to the Board members, as leaders, why Boynton Beach was not moving ahead as other locations had. It was not Ms. Brooks, or the Police Chief, or City Manager. He thought it starts with the leadership of the City. Their focus should be on what is good for the City and what is good for the citizens. They need a united front to move the City forward. Even if they disagree, they could at least show respect for one another. They have great opportunities, but they always find a way to mess it up. If he were a developer in the audience listening to the bickering, he would take his business to another City. As leaders, they need to learn it is not about Board members as individuals, it was about the City. He thought maybe they need a meeting before the meeting where no voting takes place to have issues addressed. He cautioned not to be swayed by special interest groups or controlled by those contributing to one's campaign. If a member wants a project, fine. If not, then move on. They do not need to have 100% of the Board for the Executive Director to stay. The majority rules. Mr. Fitzpatrick thought running a CRA is like whitewater canoeing: one rushes down and get bounced around, and the ones that are on the top are the ones that stay on course. He thought Ms. Brooks did well to stay on track and have forward momentum while keeping her eye on the prize and goals. He agreed with Mr. Buchanan; no one can do it all. Some of his issues with her were mainly philosophical. He did not see getting seven people to agree because the members all have different points of view. He pointed out the City was just coming out of a recession and nothing was moving fast enough. He pointed out next year will look good. He favored renewing her contract. Chair Taylor heard the majority, excluding Mr. Merker, did not want to cancel her contract. Whatever the majority wanted was how he would vote. He believed it was important for her to go forward with confidence to do her job and send the right messages to the community The majority did not want to cancel the contract. He requested those members who want to cancel her contract have a positive attitude and be 100% behind the Director. Mr. Merker favored keeping Ms. Brook as Executive Director. He thought the idea of not having a difference of opinion was ridiculous. He agreed with Mr. Fitzpatrick's comments. He observed, as a Board member, that there are people who want money, but there is a point of reality. He referenced the owner of the property at One Federal Highway was unrealistic because the owner wants to be overpaid. He supported Ms. Brooks remaining. Mr. McCray responded to the comments made and pointed out he is an elected official to represent District II, and he thought the CRA Director did not respect his position. She lost her vision of who she works for. He works for the people of the City and he was told not to chastise her staff. He commented the staff does not belong to her. The 19 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 11, 2015 issue between them was a simple scheduling problem. He told Ms. Utterback about the problem and she replied his schedule was correct. The next week he went to the CRA and was admonished by Ms. Brooks about challenging staff. He thought she should recognize who she works for. Chair Taylor asked Ms. Brooks if she wanted to continue. Ms. Brooks agreed it was difficult to get everyone to agree. She is a strong person and was accustomed to working in difficult environments and the development environment was difficult. She wanted the Board to know she is in charge of her staff and if her staff comes to her upset because of mistreatment, she has a right to request they stop. This occurred in a respectful manner. She respects all of the Board members. She makes recommendations, sometimes the Board accepts them, and sometimes they do not. She knows not everyone will like one another as it is human nature. There will be differences. It is up to the Board, not to her. Ms. Brooks will go forward and she commented they have made great accomplishments. To say not, is an outright mistruth. Chair Taylor hoped this would be ended on a positive note. He called the question on the motion not to renew the contract. The motion failed 2 -5 (Chair Taylor and Messrs. Buchanan, Fitzpatrick, Hay, and Merker dissenting.) Motion Mr. Fitzpatrick moved to retain Ms. Brooks for another year as CRA Director. Messrs. Merker and Hay seconded the motion that passed 5 -2 (Vice Chair Casello and Mr. McCray dissenting.) It was noted the contract will be on the September agenda and they could address a salary increase then. Mr. McCray advised he will not be meeting one on one with the Executive Director. XIV. Executive Director's Report: A. Update on City Entry Signage and Ocean Avenue Lighting Projects Ms. Brooks announced they were moving forward on both projects and they will be completed on time. B. Martin Luther King, Jr. Blvd. Clean -Up Project Ms. Brooks advised she was working with Captain McNevin of the Police Department and they will conduct a Friday cleanup with police volunteers and members of the Police 20 Meeting Minutes Community Redevelopment Agency Board Boynto Beach, Fl August 11, 2015 Academy between 8 a.m. and 11 a.m. The CRA would provide equipment, food and drinks. XV. Future Agenda Items: XVI. Adjournment There being no further business to discuss, Chair Taylor properly adjourned the meeting at 9:11 p.m. .. Catherine Cherry Minutes Specialist 21