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Minutes 06-14-16 MINUTES OF THE COMMUNTY REDEVELOPMENT AGENCY BOARD MEETING HELD IN CITY COMMISSION CHAMBERS, 100 E. BOYNTON BEACH BOULEVARD BOYNTON BEACH, FLORIDA ON TUESDAY, JUNE 14, 2016, AT 6:30 P.M. PRESENT: Steven B. Grant, Chair Vivian Brooks, Executive Director Mack McCray, Vice Chair Ken Dodge, Board Counsel Justin Katz Christina Romelus Joe Casello I. Call to Order Chair Grant called the meeting to order at 6:30 p.m. II. Invocation given by Reverend Jack Copas and Pledge to the Flag Reverend Jack Copas, Church of our Savior, Metropolitan Community Church, gave the invocation. Chair Grant 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 Grant noted there was a revised agenda adding New Business Item A. Mr.. Casello pulled Consent Agenda, Item A. B. Adoption of Agenda Motion Vice Chair McCray moved to approve the agenda as amended. Mr. Casello seconded the motion that unanimously passed. Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 14, 2016 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 Mr. Katz explained he was out of town and was unable to attend the CRA Workshop, but would attend the next one. Vice Mayor McCray disclosed he met with Bradley Miller and Bob Dubois earlier in the day. Chair Grant attended the CRA Advisory Board meeting and went to Two Georges; Twisted Fish; East Ocean Cafe; DJs Grill, and visited Cabinets Etcetera; Fire and Pins.com, and NewVape.com. which are high tech manufacturers in the Heart of Boynton (HOB). He met with Senator Jeff Clemens and attended the Saturday Workshop regarding the Consolidated CRA Plan. Chair Grant explained it was mentioned, during the CRA workshop, that Kohls Department Store was not doing well. He explained the Boynton Beach Kohls was doing well, but other Kohls were not. Ms. Romelus met with Bradley Miller and Bob DuBois. Mr. Casello prayed for those who were touched by the terrorism that occurred in Orlando. He commented until legislators get a handle on assault weapons, the carnage would continue. He noted the airlines have a no fly list, but one could buy an assault weapon the next day. He urged the legislators to gain control of the issue because it would continue. He was tired of it and it was the general consensus of the public. Mr. Casello attended the Memorial Day Observation at Memorial Park and the 30 Anniversary of the Coalition of Boynton West Residential Association (COBWRA.) The Association has a significant membership and keeps a watchful eye on development to the west up to Route 441. He attended the CRA public workshop and commended Ms. Brooks and staff. The event was well attended. He had met with Bradley Miller, of Miller Land Planning. Ms. Brooks explained the third workshop went well. There are a number of CRA plans and staff sought to simplify and consolidate the plans for residents and investors. There were 115 attendees present. Staff tries to make the workshops as quick as possible, but there were many questions and clarifications made. Staff will have another workshop and will meet one -on -one with the Board. Staff will provide the questions and the responses from the developer's workshop and questions and responses from the CRA Advisory Board. The data will be compiled so the Board will have all the information. She explained it will be a public meeting and the public can comment. 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 14, 2016 B. Informational Announcements VII. Announcements & Awards: A. Music on the Rocks Christopher Burdick, CRA Special Events Coordinator, announced the last Music on the Rocks concert of the season on July 17 featuring the Red Eye Band playing classic rock at the Ocean Avenue Amphitheater. The concert is from 5 p.m. to 9 p.m., with food provided by the Food Truck Invasion and the bar provided by Carefree Catering. Free on -site parking is available. The concerts will resume October 21 with the Pirate Fest. B. Movies in the Park Mr. Burdick explained the last Movies in the Park event featured Beet(ejuice on June 3 rd at 8 p.m. Guests were encouraged to bring beach chairs and blankets. There was free on -site parking available. A trailer of selected CRA District businesses was shown before the show and gift cards from the selected CRA businesses and Pirate Fest souvenirs were given away through a drawing. Food and beverages were available for purchase from local vendors. The Movies in the Park series will return October 7, 2016. VIII. Consent Agenda: A. Approval of Minutes CRA Board Meeting May 10, 2016 Mr. Casello pulled this item. B. Approval of Period Ended May 31, 2016 Financial Report C. Monthly Purchase Orders D. Approval of Commercial Facade Grant to Del Sol Bakery, LLC in the Amount of $2,250 E. Approval of Commercial Rent Reimbursement Grant to Dei Soi Bakery, LLC in the Amount of $8,550 IX. Pulled Consent Agenda Items: Mr. Casello referred Ms. Brooks to page 6, Item 13 of the minutes and asked when the Family Dollar Store was sold. Ms. Brooks explained the developer of the Family Dollar Store, Boos Development, had presented a development cost outline when they entered into the Purchase and Development Agreement and Boos had explained they would not own the building. The property sold in October for $2.5 million, setting a comparable that has not been seen for retail in the Heart of Boynton. This would allow 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 14, 2016 successors to borrow money without the CRA's assistance. The transaction started in 2013 and the CRA gave two parcels; one valued at $62,000 and the other at $65,000. The CRA also provided economic development grants and did not provide any TIF. Without the CRA's property, the value of the land was worth about $170,000. Boos bought two private properties. Now the property will go on the tax roll next year for nearly $2.5 million. Mr. Casello noted last month, the CRA approved two grants to Boos for about $25,000 each. One was for a build out and one was for a fapade. He questioned why the funds were given when they did not own the property. Ms. Brooks explained the provision was included in the Purchase and Development agreement. Mr. Casello thought the grant should end with the sale of the property and the sale would void the provision. He noted this was also done with the Casa Costa property as it pertained to the developer wanting the TIF with a potential sale of a building. The developer developed the property and sold it, and the Board agreed to the grants last month. Chair Grant was aware the grants were matching reimbursable grants and noted the Board could have given them $25,000, but the CRA gave them $22,500. He commented when conducting business, it was good to honor their contracts. Although the property was sold, the CRA contract does not end, unless it is added to future contracts. Mr. Casello noted he and Ms. Brooks had spoken about the matter and asked if they could add the provision. Ms. Brooks responded if done, there is no incentive for a developer to talk to the CRA and clarified developers sell properties all the time. She commented they have an agreement and a TIF agreement with Seaborne Cove. Seaborne Cove did what they were supposed to do. The development was constructed to the green standard, and was sold at time of occupancy. The CRA cannot say they did their part, and the CRA renege on its agreement because the project was sold. She commented there would be no incentive. Mr. Casello thought the CRA should renegotiate with the new buyers. Ms. Brooks explained the Board could do so but cautioned the Board should contemplate the goal of the CRA. It is a policy decision and she understood developers do not own property for very long. Small developers would, but not the larger ones. When 500 Ocean is completed and the rents stabilize, it will be sold. Motion Vice Chair McCray moved to accept the minutes as presented. Mr. Katz seconded the motion that unanimously passed. Motion Mr. Katz moved to approve the remaining items on the Consent Agenda. Vice Chair McCray seconded the motion that unanimously passed. 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 14, 2016 Motion Mr. Casello moved to hear Item XI., Public Audience before Item X. Information only.. Mr. Katz seconded the motion that unanimously passed. X. Information Only: A. Public Comment Log Chair Grant noted there was a letter and an email in the log. B. Marketing and Business Development Campaign C. Annual Filing of Statement of Financial Interests D. Community Police Program — Quarterly Report — January — March, 2016 Ms. Brooks advised this was the first quarterly report for the program. Mr. Casello wanted to know what was paid in salaries and office supplies. Ms. Brooks explained the agreement only specified they were to issue a quarterly report. When the report is received and compliant, the CRA reimburses the Police Department. Ms. Brooks clarified the only thing the CRA pays is for personnel and it is a flat $200,000. She had advised the department the CRA was not purchasing equipment or ammunition because the City pays for those supplies. Mr. Casello requested a breakdown of the expenses. Ms. Brooks explained the program was a trial and staff will bring it back during the budget and can require a line item budget be prepared. The CRA originally sought to include a line item budget in the agreement, but was unsuccessful. Mr. Casello thought the CRA was spending $200,000 of taxpayer money and wanted the department to specify where the $50,000 was spent within two weeks for the quarter. Ms. Brooks agreed to email the Police Chief asking him to forward the breakdown to her. Vice Chair McCray thought an officer should have been present to answer questions. Chair Grant noted the Interlocal Agreement was included in the meeting backup and it did not include a line item budget; however, they could request one. E. CRA Advisory Board Agenda The CRA Advisory Board had made a recommendation regarding the Americas property on Federal Highway. At the meeting, Chair Grant saw a different request for proposal for the Ocean Breeze East site than what the Board received and was pleased the Board received an updated Request for Qualifications for that property. He noted the CRA Advisory Board did not review the MLK South Request for Proposals due to the timing of the meetings. 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida .tune 14, 2016 F. Washingtonian Article: "How Whole Foods Decides If Your Neighborhood Is Worthy Ms. Brooks commented some residents thought they would have a Whole Foods store in the CRA area. At the workshop, staff explained existing and demographic conditions had to be considered. She noted the income in the area is $20,000 below Palm Beach County's income within the CRA District. The article detailed the first factor Whole Foods looks at is education and the correlation between education and income in the community. The article contained locational decisions by organizations such as Whole Foods which included population density, density, education, demographics and the community's interest in natural and organic foods. She advised the City's current demographics would not attract a Whole Foods store. She noted the CRA has work to do to get there and have a vibrant downtown. Ms. Brooks explained each CRA plan recommended density, traffic calming and all of the aforementioned items. On Saturday, staff explained almost all of it is in the Federal Highway Corridor Plan, the Ocean District and Heart of Boynton Plan. There were very few differences. The CRA was not adding a lot of height or density anywhere, and was reducing density and height in some areas and putting it in areas that connect to 1 -95. There are planning principals in place. She understood residents do not want anything in their backyard they do not like, but if a Whole Foods was wanted, the CRA needed to attract people with education and income. Chair Grant noted several Whole Foods are located in mixed residential areas and sometimes they build horizontally up to 150 feet. XI. Public Comments: (Note: comments are limited to 3 minutes in duration) Harry Woodworth, 685 NE 15 Place, President of INCA, commented the CRA meeting was good, but it was more of a presentation and not much of a workshop. He thought attendees were shaping Boynton through clicking on presentations that had carefully worded questions that did not always match the graphics, and there was no public or citizen input. He noted many people left during intermission. He suggested the CRA Advisory Board review the presentation and provide input on the six areas presented. He hoped the CRA Advisory Board would review the materials by the June meeting and come to the next meeting with information and citizen input. He imparted the citizens feel they are being ignored. Lulu DeCamara, 836 East Drive attended the Saturday CRA workshop, but had to leave. She appreciated the work and effort for the presentations and handouts. She explained the attendees were requested to hold off on questions until the end, and if they did not understand the question being voted on, they could ask for clarification. Ms. DeCamera commented the answers were yes, no, or not sure, but the problem was an attendee was voting on an item without first having their questions answered. She could not stay for the Heart of Boynton and Federal Highway Corridor Plans, but noted the Industrial Craft area would have additional parking and sidewalks. She asserted the land had to come from current owners and asked if they were approached or agreeable to the Plan. She also explained Boynton Beach Boulevard would have a public use and 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 14, 2016 a change to Mixed -Use Medium. Some residential property would be reclassified to Mixed -Use Low and Mixed -Use Medium. She inquired if those property owners were aware there was an overlay. She opposed building heights of 100 to 150 feet as they block air, light, and add more concrete. She requested the Board consider some of their comments. Chair Grant explained the workshop was on the Consolidated Plan. It was not a new plan for the CRA. The reason for the yes, no, or not sure was so all would be aware of what was contained in the old plans. Rick Tufano, High Point Director, Section 4, commended the Board on the workshop. He explained his background is in real estate law and zoning regulations. He thought a consolidated plan is excellent and noted two changes from prior workshops: the west side of Federal Highway was changed to MU -II zoning which went from 75 foot zoning and the node by Winn Dixie was changed from MU -3 to 75 foot zoning. He noted it is a 20 -year plan and there are two developers looking for variances to build. He explained none of the projects were discussed during the presentation. He thought it was obvious that someone was talking to someone and the Comprehensive Plan was adjusted to make it work for developers. He suggested the Board look into the matter. Mary Nagle, 2006 S. Federal Highway, attended the CRA workshop and had seen a prior presentation. She asked why Riverwalk was not included and was told it was not ready. She saw those in attendance worked and lived in Boynton Beach. She thought there was a big difference in input and outcome, if one is a resident verses someone who only works in Boynton Beach. She felt the questions were big and broad. She commented they could not discuss height and have it apply to all the districts because one size would not fit all. She hoped there will be a step down from 10 and 15 story buildings to something more in line with buildings south of Woolbright Road, which were at the four and five - stories. She was upset at the thought of a potential 10 -story building and thought it was out of place. She noted Las Ventanas is five - stories. She requested the Board not be fooled and asserted the CRA was gathering data saying the citizens support it, but they do not. Butch Buoni, 450 Horizon East, No. 304, President of Sterling Village attended the public workshop and agreed combining land plans was good. He questioned why the CRA Advisory Board had not provided input, as without the CRA Advisory Board input, citizen input was removed. He advised he felt like the Board was locked into the previous administration's plan and the citizens do not want the west side of Federal Highway allowing 75 -foot buildings and thought it was extreme. They support responsible development and thought anything higher than 45 feet would not be appropriate. Tom McClure, 2004 S. Federal Highway, thanked the Board for the flexibility to speak and he applauded Ms. Brooks. He had attended the Consolidated Plan Workshop and commented the Plan appears to usurp the responsibility of the City Commission and to 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 14, 2016 hand over the design to the CRA and developers who want to turn the City into high rises. He thought it was unfair to ask the City Commission to vote on all six districts at once, because each district was unique. He thought the review should be conducted by the CRA advisory Board, so they can advise the City Commission and hoped it was not an attempt to reduce citizen involvement. He wanted to think his thoughts and the community's thoughts are heard. He commented continuity is a cornerstone of responsible development. If the individuals guiding the process are voted out each election, because developers are doing an end run on the City Commission, the City will become stagnant. The plans offered at the workshop appeared to him to be the agenda of the prior City Commission and he asked that it be stopped. Susan Oyer, 140 SE 27 Way, complimented Ms. Brooks on the presentation and agreed with a lot of the ideas. Her issue was height and density. She favored using live oak trees or some other tree that could provide for shade and withstand hurricanes and did not want palm trees. She expressed none of the questions addressed height and density specifically and that was what the residents were interested in. In 1982, the citizens voted for a 45 -foot height limit and Ordinance 82 -1 was passed. In 1989, the issue resurfaced, but the Commission took no further action. She noted there is a home rule, and she implored the City Commission to adhere to the 45 -foot height limitation. She favored controlled growth. No one else coming forward, Public Audience was closed. XII. Public Hearing: None XIII. Old Business: A. Consideration of Approval of Transferring Portions of CRA Model Block Properties to the City of Boynton Beach for Rights of Way and Easements Chair Grant asked for a motion to discuss item A. Mike Simon, Assistant CRA Director, asked if there were any questions on the item or if he should make a presentation. Motion Vice Chair McCray moved to discuss. The motion was duly seconded and unanimously passed. Vice Chair McCray asked why a motion to discuss was needed as they never had to make a motion to discuss what is on the agenda. The Board had always heard the presentation first and then discussed it. Ken Dodge, CRA Attorney explained a motion was not needed. The item is open for presentation and discussion. 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 14, 2016 Vice Chair McCray removed his motion. Mike Simon, Assistant CRA Director, explained the item required approval in order to transfer property to the City. The properties had predetermined rights -of -way and utility easements as part of the Model Block project. The properties were acquired by the CRA and the City Commission will accept the rights -of -way and easements. A map was included. Mr. Simon explained the item was approved through engineering and was a formality. Vice Chair McCray noted when the Model Block came before them, they had understood they had to address easements and rights -of -way. Motion Vice Chair McCray moved to approve. Mr. Katz seconded the motion that unanimously passed. B. Consideration of Approval of Purchase Agreement between AmeriGas and the CRA for 711 N. Federal Highway in the Amount of $625,000 Ms. Brooks explained this property was an industrial property on a major corridor to the downtown, although it was not located in the downtown area. The property owner was operating until last year without a Business Tax Receipt. They were shut down because they were a non - conforming use and could no longer operate. The CRA viewed it as an opportunity to purchase the property. It is an eye sore and the property has barbed wire and a chain link fence. The property appraised at $560,000 and after negotiation, staff settled at $625,000 if AmeriGas removed the equipment. The CRA does not have the technology to remove the equipment or want the liability. The CRA also has a 90 -day feasibility period to conduct the Phase I and II Environmental Assessments to ensure the property does not have excessive environmental issues. The County was prepared to provide a grant to pay for the Phase I and II environmental assessment costs and staff will know fairly quickly if there are issues at the location. Vice Chair McCray noted the business was there for about 64 years and INCA complained to him about it many times. A concern was also raised if a train derailed and hit the gas tank. He understood it was a lot of money for the property, but he favored the purchase and the company removing the tanks. Mr. Casello learned there was a small underground oil heating tank for the office, which would not be difficult to remove. He asked about the tank stanchions. Attorney Dodge explained the large concrete blocks the tanks were on would go through another layer of approval and it was an additional cost that would have to be negotiated. Ms. Brooks thought it would be few thousand dollars to remove. Mr. Casello agreed with Vice Chair McCray and asked what the plan was and the real cost. Ms. Brooks explained there is a broker fee, and closing costs. There was $835,000 budgeted for key acquisitions. 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 14, 2016 The Downtown vision calls for the area to be green space. The CRA will remove the fence and Code requires the CRA to grass the property. The CRA could issue an RFP in the future if the Board desired. The property could also be used for Fire Station No. 1 as it meets the criteria for a fire station which will help move the Town Square forward. Mr. Casello had not heard any comments from the Police or Fire Chief they would consider the property. He noted Mastercraft was next door and they were interested. Mr. Casello was concerned the CRA would pay $800,000 and Mastecraft indicate they want to purchase the property and the CRA sells it for pennies on the dollar. He asked if that could occur and if the CRA can partner with them if they meet certain criteria. Ms. Brooks explained the contracts are only assignable to the City. The CRA could back out and let Mastercraft negotiate with AmeriGas. It was up to the Board if the CRA would sell the property for pennies on the dollar, but Ms. Brooks would not recommend it. She explained that was done in the HOB, not the Federal Highway Corridor. Mr. Katz noted the Purchase Agreement gives nine days to conduct the environmental assessment and commented if contamination is found, the CRA did not have to purchase the property. The property would still be polluted. He asked if the CRA could put something in the contract that indicates the company would be liable for the clean- up costs. Ms. Brooks explained the CRA has to first know what they are dealing with. If there is minor contamination, they could negotiate. She explained propane is a gas and CRA funds could be used for clean -ups. The Board could decide if it is worth it and if the contamination was contained on site. The soil would be removed, disposed of properly, and the property is put on the tax rolls. The Board will make that decision and staff will apprise the Board of all the relevant information. Mr. Katz wanted the company to commit to pay the cost of cleanup, prior to purchase, if there was contamination and the CRA could not use the property or would have to pay to remediate the property. Chair Grant explained if something is found, they could report to the EPA who has regulations regarding clean up. He thought if the CRA tries to limit them to clean up, they may not sign the new contract and it could fall through. The CRA could exit the contract. Chair Grant thought it was better to do the study and not require them to clean up because there are other avenues, aside from the City, to make them clean it up. Ms. Brooks explained the County funds are EPA dollars. She thought if contaminated, no one would want the property and they may reduce the asking price or clean it up. The property would not be able to be financed if contaminated. Mr. Katz questioned if there was excessive contamination and it violated Federal standards and the EPA tried to assist, if that was a guarantee that if something was discovered the company would legally be forced to clean it up. Ms. Brooks was unsure, but commented if there was a super fund site; the EPA would intervene, but not always on smaller sites. She noted propane is natural and would dissipate over time. Sometimes only monitoring wells are used such as with former gas stations or they could wait for a period of time. 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 14, 2016 Motion Vice Chair McCray moved to approve. Ms. Romelus seconded the motion that passed 3 -2, (Messrs. Casello and Katz dissenting.) XIV. New Business: A. Request for Proposals /Request for Qualifications or accept the Letter of Intent from Nurock Acquisitions Florida, LLC for the CRA Owned Parcel known as Ocean Breeze East Chair Grant announced the CRA received a Letter of Intent offering $800,000 with a contingency of obtaining 4% housing credits and other financing options. He noted if the Board was inclined to move forward with the Letter of Intent, the CRA would have to follow a different procedure than issuing the RFP. He noted Nurock can respond to the RFP, but this item would give them a head start so they would not have to do as much work to meet the requirements of the RFP. Vice Chair McCray asked how reliable the company was and learned they are a national company and the 12 th largest development company in the US. Mr. Block, representing Nurock was present. Robby Block, 8794 Boynton Beach Boulevard, clarified they were not trying to skim the system and do more work. He explained the Florida Housing Finance Corporation (FHFC) has a tax exempt bond and state incentive loan coming due prior to when the RFP would be completed, approved and going to contract, which was why they submitted the Letter of Intent. Nurock has been in existence for 20 years and have been in Florida for over 10 years. There are three projects in the pipeline; two in Broward and one in Palm Beach County. They completed two communities; one in Davie and the other north of Tampa. They are the 12 largest affordable housing developer in the country and they own over 9,000 units between Florida, Georgia and Texas. He had brochures which he distributed to the Board. The property in Broward was a 92 unit townhome community that was constructed with a similar financing structure. They also won tax credits for downtown Pompano Beach off Dixie Highway, which was a seven- story high -rise, with retail on the first floor and 116 senior living units on seven stories. Vice Chair McCray commented the CRA has been trying to do something with the property since the hurricane and each time the RFPs have been unsuccessful and they have to start all over again. He favored issuing the Letter of Intent. Chair Grant noted Nurock has constructed retail and noted the current zoning has a height limitation of 45 feet. He asked if the proposal would be higher than that and learned the plan called for 100 units and three stories with no retail. Mr. Block commented three stories on 4.5 acres was dense, and the other projects were competing for 9% credits. The SAIL money was not competitive and a bond deal has 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 14, 2016 fewer funds available for mid -rise products that would encompass retail. Vice Chair McCray noted retail was wanted. They could have retail on MLK Boulevard, but housing was first needed before doing retail and he could support the effort. Mr. Casello did not like the timing and wanted more time to review the proposal. He had no knowledge that the item would be walked onto the agenda and thought the CRA Advisory Board could review it. Mr. Katz agreed and liked entertaining other options than the lottery. This would be a guarantee, but he wanted more time for the review. Vice Chair McCray asked if there was urgency. Mr. Block explained the previous contract the CRA had with another developer was recently terminated, so they had not pursued the project. He commented Florida Housing released the dates for the next cycle within the last week and a half. The CRA could approve the documents in late July and there are a few documents they have to get from the County for their application to the State in late September. There was not much time between August and September, and when the County releases their soft loan program, Nurock would have to show they had site control of the property to submit for the funds. When Florida Housing releases the dates, the County will back date their programs and prepare their RFPs and RFQs to submit for local funds, but he was unsure when that date would be. Ms. Romelus appreciated the attempt, but did not want to rush. She explained they had requested some retail. She preferred Nurock go through the RFP process. David Katz, 67 Midwood Lane, commented when the CRA ended the contract with Urban Related, the CRA asked if going to RFP would upset the cycle and Ms. Brooks responded it would not regarding the 9% tax credits. She noted the development community was aware the CRA was using the RFP for the site. If the Board wanted to consider a purchase and use 4% tax credits, it should be communicated to the development community as there may be other entities there that would make the same type of offer including retail. He hoped the word would get out the Board would entertain a purchase and commented some developers may not need the 4% credits. Ms. Brooks explained the RFP specifies it is a mixed -use project and the land use and zoning was already in place. Staff planned to list it on Loopnet, and any kind of offer could be submitted. Developers were not limited to the 9% credits. Mr. Katz inquired if the proposed plan would meet the qualifications and submit through the RFP process. Ms. Brooks responded they could, but the timing may not and likely would not work. The other issue is the change to the 9% tax credit and where they would allocate them. The 4% would be a tool, as would SAIL, and the bond and the financing would be layered. Mr. Katz asked if tabling the matter for a month would hinder the 9% credits. Mr. Block explained the 9% tax credit applications would be due early December. The current RFP would potentially be in position for the 9% competitive round tax credits. Mr. Block noted there are Qualified Census Tracts (QCTs) and Difficult Development Areas (DDAs). The Housing and Urban Development changed the way they categorized 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 14, 2016 DDAs. If a majority of the County was in a OCT and DDA, they encompassed the macro - county. As of July 1 HUD moved it to small area DDAs, which are higher income and higher education areas. The QCTs are lower income, higher poverty areas. Florida Housing created factor areas, which were higher income, education and employment placement jobs, and those factors are not located at the Seacrest site as it is not in a OCT. The Florida Housing 9% credits would assist developers with factor areas only. They cannot deny the assistance for QCTs, but they could adjust the amount of funds that would be used for QCTs. Ms. Brooks asked if that meant applications for 9% may not score or receive as much funding. Mr. Block explained Florida Housing has Requests for Applications (RFAs) for 9% credits for six counties including Palm Beach. Each County gets one deal, and their goal this year is to fund at least two to three projects in factor II or III areas. If someone applied for a project in a factor II or III area, the project would be preferred over a site in a OCT. The Ocean Breeze site is in a OCT area, but will not get as much leverage or credit as a factor area and would be given a lower preference. The site, although in the past was a good project to score, was currently not a good site. Mr. Block proposed to layer the financing which is common in affordable housing. Mr. Casello asked why the late entry and learned the market had shifted. Tax exempt bond communities were built before the market crashed and the State would appropriate funds for the SAIL loans which are low- interest loans that bridge the gap on the bond financing structure. Equity prices increased and interest rates are lower, and they had SAIL for the last 2.5 years. Mr. Block explained he had been aware of the property for a while. Vice Chair McCray appreciated the Letter of Intent, but wanted another month to review it and favored tabling the item. Mr. Katz agreed. Anyone wanting to use these tools would be fine for the 9% tax credits due in December, but it would be tight for the 4% bonds and SAIL. Motion Mr. Katz moved to table the item to the next meeting. Vice Chair McCray seconded the motion. There was very lengthy discussion about whether to reject or accept the Letter of Intent, release the RFP or not and the timing for the applications. Vice Chair McCray wanted to issue the RFP on Loopnet. Motion Mr. Katz amended his motion, per Vice Chair McCray comments, and moved to issue the RFP. It was noted the Board must first accept or deny the Letter of Intent. 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 1, 2016 Motion Ms. Romelus noted a motion must be made in the affirmative and moved to approve the Letter of Intent. Vice Chair McCray seconded the motion for discussion. The motion would allow the issuance of the RFP without the Letter of Intent. The motion failed 0 -5 (all dissenting.) Motion Vice Chair McCray moved to continue with the RFP. Mr. Katz seconded the motion. Chair Grant noted the HOB Plan because parties were interested in developing the HOB but the rezoning was completed. Ms. Brooks explained the land use and zoning was included in the RFP. He requested they be made aware the HOB Plan had not been updated to 2016. The motion unanimously passed. B. Request for Proposals /Request for Qualifications for Properties Located on Martin Luther King, Jr. Blvd Motion Mr. Casello moved to approve. Vice Chair McCray seconded the motion that unanimously passed. C. Special Events Grant for Hurricane Alley Motion Vice Chair McCray moved to approve. Mr. Casello seconded the motion that unanimously passed. Mr. Casello commented Hurricane Alley was the anchor in the downtown for a long time He praised Kim Kelly and thought the event could be great and hoped it would become a tradition. Chair Grant agreed, and hoped it would be held every year. Mr. Burdick inquired which option was approved and learned it was for the full $5,000. Kim Kelly, 529 East Ocean Avenue, thanked the Board and advised she wanted to have the Summer Sizzle event each year. She noted there would be three bands and the streets would be lined with vendor tents down to the park. They would also have a DJ and picnic in the park. She invited E. Ocean Cafe to provide for customized picnic baskets, there would be oversized games and activities for children. They would invite Cafe Frankie to sell pizza and was trying to involve other small businesses and 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 14, 2016 restaurants to participate. The event will be held on Saturday, July 30th, from 3:30 p.m. to 11 p.m. She encouraged all to check their Facebook page, for a list of activities and hoped all would attend. D. Consideration of Approval of Commercial Facade Grant to 500 Ocean Properties, LLC (Oyer Building) Motion Vice Chair McCray moved to approve. Mr. Katz seconded the motion. Mr. Casello noted Hurricane Alley was six months short of the five -year time period. He understood the six months would be added to the back end of the grant period. Motion Vice Chair McCray moved to approve Option 2 with the six -month extension. Ms. Romelus seconded the motion that unanimously passed. E. Consideration of Approval of Subordinating the CRA HAP Mortgage to Neville Marques for the Purpose of Refinancing Motion Vice Chair McCray moved to approve. Ms. Romelus seconded the motion that unanimously passed. XV. CRA Advisory Board Mr. Casello commented he wanted the CRA Advisory Board to review the Consolidated Plan, and asked if the CRA Advisory Board could review the Letter of Intent. Ms. Brooks explained the Advisory Board would be reviewing the presentation and was not at Saturday's workshop. The Saturday workshop was not a charrette. The Advisory Board will review the same exact presentation that everyone else saw and they will be polled and they will give their response as well. Mr. Casello suggested they be allowed to ask questions. He commented there are six zones with a lot of information and suggested it may have been better to break it down to two or three zones per session. Their input would be more beneficial. There was unanimous consensus. Chair Grant inquired if the Advisory Board would be willing to meet twice a month. He suggested they meet on the first and third Thursday. Ms. Brooks commented she does not have sufficient staff to prepare three board packets a month. Mr. Katz opposed the 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida June 1, 2016 suggestion noting they are a volunteer board. Chair Grant explained they would only ask to have an extra meeting instead of one long meeting noting their last meeting lasted at least three hours. Ms. Brooks pointed out the Advisory Board would also have an extra meeting for the budget Chair Grant thought if the Board had anything left over from their first meeting, they address it at a second meeting on the third Thursday. Ms. Brooks explained staff would have to get the packet out, which was problematic. Mr. Katz was opposed to asking the question as was Vice Chair McCray and Ms. Romelus. Mr. Katz explained they already have three items on their agenda. Ms. Romelus agreed with Mr. Casello's comments and thought they could take some time to split the review of the Consolidated Plans into two or three sessions. They could adjourn the meeting and continue the items to the next meeting. A. Assignments — Research on the Feasibility of a Regular Art Walk Event on Ocean Avenue XVI. Future Agenda Items: Chair Grant asked Ms. Brooks to add upcoming items as Future Agenda Items. Ms. Brooks commented the Cottage District RFP /RFQ and the selection of a contractor for the final phase of the Marina redevelopment project would be on the July agenda. XVII. Adjournment Motion Ms. Romelus moved to adjourn. Vice Chair McCray seconded the motion that unanimously passed. The meeting was adjourned at 8:20 p.m. >� r Vi..µ .. Catherine Cherry Minutes Specialist 061516 16 i