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Minutes 03-08-16 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD IN COMMISSION CHAMBERS,CITY HALL, 100 E. BOYNTON BEACH BLVD. BOYNTON BEACH, FLORIDA ON TUESDAY, MARCH 8, 2016 PRESENT Jerry Taylor, Chair Vivian Brooks, Executive Director Joe Casello, Vice Chair Tara Duhy, Board Counsel Michael M. Fitzpatrick Mack McCray David Merker I. Call to Order Chair Taylor called the meeting to order at 6:30 p.m. II. Invocation and Pledge to the Flag Mr. McCray gave the invocation and led the Pledge of Allegiance to the Flag. Ill. Roll Call All members were present. IV. Legal: None V. Agenda Approval: A. Additions, Deletions, Corrections to the Agenda Chair Taylor requested moving New Business Items F and G to the front of the agenda. B. Adoption of Agenda Motion Mr. McCray moved to approve the agenda as amended. Vice Chair Casello seconded the motion that unanimously passed. VI. Informational Items and Disclosures by Board Members and CRA Staff: A. Disclosure of Conflicts, Contacts and Relationships for Items Presented to the CRA Board on Agenda Items Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 8, 2016 Vice Chair Casello attended the CRA Advisory Board Meeting and was impressed how it was run. He attended the Souls to the Polls event on Sunday and attended the Forum Club with the City Manager at the Convention Center in West Palm Beach for discussions on national debt. Mr. Merker also attended the Souls to the Polls and thought the leadership was excellent. He thought voting was the greatest privilege for citizens. He noted Election Day was pending and he was honored to work with the CRA staff. He thanked them for their time and effort as this could be his last meeting. Mr. McCray attended a 5K Run and on Sunday, he marched with the Souls to the Polls for early voting. He encouraged all to vote early. Mr. McCray also attended the water treatment plant project. He wanted to see the drilling under 1 -95 and the train tracks when the connections are made. Chair Taylor advised two weeks ago, he toured the construction at the 500 Ocean development. It was informative and the project was progressing well. He read to Freedom Shores Elementary School students. He toured the East Water Treatment Plant, which is undergoing a revitalization. A new three million gallon water tank was installed, in addition to the martini glass shaped water tower that holds 1.5 million gallons. When complete, the City could produce over 24 million gallons of water at any time and provide water for new developments in the downtown. He noted the West Water Treatment Plant was being connected to the East Water Treatment Plant. When completed, the project will fulfill the City's water needs up until 2050. He commended staff at the Utilities Department and the planners for a great job. Mr. Fitzpatrick noted over the weekend a flyer was issued by James Brake giving false information. He noted the Election Code violations and penalties indicate that, "any candidate, who in a primary or other election, with actual malice makes or causes to be made, any statement about an opposing candidate that is false, is guilty of a violation and subject to fine." The flyer asserts Commissioner Fitzpatrick was the only candidate who voted for a sober home, but it actually pertained to the Novus medical office which the Commission voted down 1 -4 on November 17 He contended Mr. Brake knowingly lied about it because James Brake was a member of the Planning and Development Board. On October 27, 2015, the Board heard the request and then voted 7 -0 to approve the request. He felt Mr. Brake lied and was a hypocrite. Mr. Fitzpatrick announced he intended to file an election violation. Ms. Brooks advised she also toured the 500 Ocean site with the contractor. Mr. McCray hoped other Board members would be invited for a tour after the election. 2 Meeting Minutes Community Redevelopment Agency Board Boynto Beach, Fl March 8, 2016 B. Informational Announcements VII. Announcements & Awards: A. Music on the Rocks Chris Burdick, Special Events Coordinator, advised on Friday, February 19, 2016, Music on the Rocks featured a free concert by Funkabilly Playboys. Six food trucks were present at the Ocean Avenue Amphitheater. The event, which had free parking, took place from 6 p.m. to 9 p.m. Five hundred people attended. Music on the Rocks events were planned for March 18 April 15 May 20 and June 17 th . B. Movies in the Park The March 4 th Movies in the Park event featured ET the Extraterrestrial from 7 p.m. to 9 p.m. Attendees were encouraged to bring beach chairs and blankets. There was free parking. Gift card raffles for CRA District businesses and Pirate Fest souvenirs were given out after the movie. Food and beverages were available from local vendors and about 120 people attended. April 1 St would feature Ghostbusters. He noted the time will change from 7 p.m. to 8 p.m. due to Dayllyht Savings Time. The May 6 th event will feature Labyrinth and Beetlejuice on June 3 . Mr. McCray advised he attends the Senior Center daily and when he is there, patrons often speak about Movies in the Park. C. 2nd Annual Boynton Beach Blarney Bash On Friday, March 11 th , the 2" Annual Boynton Beach Blarney Bash will take place at the Ocean Avenue Amphitheater and along Ocean Avenue from 6 p.m. to 10 p.m. Entertainment will be provided by Fire in the Kitchen, Clockwork Knotwork and Blues Dragon. Retail vendors will be lined along Ocean Avenue and children's activities were planned. Three cash prizes will be given to Wearing of the Green contest winners. Food and beverages will be available from KP Concessions and Carefree Catering. Parking was free. VIII. Consent Agenda: A. Approval of Minutes — CRA Board Meeting February 9, 2016 B. Approval of Period Ended February 29, 2016 Financial Report C. Monthly Purchase Orders 3 Meeting Minutes Community Redevelopment Agency Board B oynton Beach, Florida March 8, 2016 Motion Mr. Merker moved to approve the consent agenda. Mr. McCray seconded the motion that unanimously passed. IX. Pulled Consent Agenda Items: None. X. Information Only: A. Public Comment Log -None B. Marketing and Business Development Campaign C. Media Regarding the Heart of Boynton Neighborhood Policing Program Chair Taylor announced there was a good article in the newspaper about the kickoff of the program. He has already received feedback from residents about how much they like the program, and the youth were interacting with the Officers. Mr. McCray announced a Senior Health Fair on March 16 at the Civic Center. Free transportation to the Civic Center was available for seniors. XI. Public Comments: (Note: comments are limited to 3 minutes in duration) Cindy Falco Decorato, 316 NW 1 St Avenue, heard someone indicate how Boynton was established, and she wanted to set the record straight it was not established by Bahamians, it was by Birdie Dewey who founded and purchased Boynton Beach. She commented Mr. Merker was kind to her and her husband at a dinner, but when running for office, he should not call people names. Mr. McCray agreed with Ms. Decorato regarding the history of Boynton Beach as the book about the City's history was in the Library. He favored researching the matter before acting. No one else coming forward, Public Comments was closed. XII. Public Hearing: None XIII. Old Business: A. Consideration of Entering into Interlocal Grant Agreement between the City of Boynton Beach CRA and Solid Waste Authority of Palm Beach County and 4 Meeting Minutes Community Redevelopment Agency Board B oynton Beach, Florida March 8, 2016 Allow the CRA Executive Director, Vivian Brooks, to Execute the Agreement on behalf of the CRA Board. Ms. Brooks explained the City and CRA wrote a grant to the Solid Waste Authority (SWA) for a Blighted and Distressed Property Clean Up Beautification Grant for three projects in the Heart of Boynton neighborhood. The SWA fully funded the grant. The CRA match was $31,247 and the total amount was $93,547. The SWA is a governmental agency of the County and one entity has to be the monitor. Ms. Brooks advised the CRA will monitor the grant. Chair Taylor thought staff did a great job cleaning up the area. Vice Chair Casello and Mr. McCray complimented staff on the grant and for working so hard. Motion Mr. McCray moved to approve. Mr. Merker seconded the motion that unanimously passed. XIV. New Business: G. Consideration of Publication of a Notice of Intent to Dispose Real Property for CRA Owned Property Located at 222 N. Federal Highway. Ms. Brooks advised she received a Letter of Intent from Attorney Bonnie Miskel regarding CRA property at 222 N. Federal Highway, on the corner of Boynton Beach Boulevard. The property was originally larger and had a motel. The intent of the CRA purchasing the property was to provide access to Marina Village and create a pedestrian Promenade walkway. The CRA paid $900,000 in 2002, and then lost a lot of the property to public improvements. The property was appraised on January 11, 2016, and sent to Attorney Miskel and Mr. Morris to issue a Letter of Intent and begin negotiations for a Purchase and Development Agreement. A site plan and zoning change was submitted to the City for the CRA property and a portion of Mr. Camalier's property because, as owners, they have to sign off for staff to begin the review process. Ms. Brooks explained she could not sign off on the submittal as it requires Board authority and Board authority could not be obtained until the process detailed in the Statutes was followed. After receiving the Letter of Intent, the CRA would issue a 30- day notice of Intent to Dispose of Real Property. If selling the property below market value, they have to obtain City Commission approval. The appraised value of the now smaller CRA property is $460,000. The land use was mixed -use core and the property was slightly less than half an acre. The project would be situated on both properties and be mixed use. The developers were asking for the land at no cost. Staff advised transferring the property for the Ocean One project was the best use of the land. Ms. Brooks recommended accepting the Letter of Intent. 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 8, 2016 Mr. McCray noted the CRA purchased the property because there were many problems and illegal activities with the motel. Although they may have paid too much, the problems that were alleviated in the City because the motel was closed was money well spent. Ms. Brooks explained the CRA does not generally turn over properties. The Purchase and Development agreement would specify the property would not be transferred until the closing of their construction loan, as a simultaneous close. Mr. Fitzpatrick did not feel comfortable moving forward without knowing more about the project. Ms. Brooks explained they just received the plans on Thursday. Staff had copies made and the backup materials included the building elevations. She explained this would be the first step in the transaction. Nothing would happen until the May CRA meeting. Mr. McCray was in favor of accepting the letter and noted the CRA had been trying to develop downtown Boynton. He agreed with Vice Chair Casello this would be a good project for the CRA Advisory Board to learn and review. Bill Morris, 777 E. Atlantic Avenue, Delray Beach, a principal in the Ocean One project with Davis Camalier was present. Mr. Morris would be responsible for the vertical construction, having much experience with similar projects in urban locations. They submitted initial plans a week ago including architectural, traffic, civil engineering and photometric plans. They would use the same architect as was used for Casa Costa, formerly the Promenade, and were in discussions with General Contractors such as Coastal Construction and LandSouth Construction working on the 500 Ocean project. The project would have 237 rental units in an eight story, U- shaped configuration. It will be a high - quality project having a pool, landscaped area, connected garage, retail and commercial on the corner of Boynton Beach Boulevard and Federal Highway, and also on the corner at 6 They hope to start construction in late summer or early fall. The developers had been considering the project for a long time and are serious about moving forward. He hoped the Board would support it. Chair Taylor clarified the subject property was the lot where the Bank of America was and only half the property was needed. Mr. Morris commented the corner piece could be a hotel and the back portion; to the east, could be a high -rise, for -sale project. Chair Taylor disclosed he met with Messrs. Morris and Camalier and learned about their plans Y p about a month ago. t Mr. McCray commented there is a project being developed on Woolbright and the Intracoastal Waterway, and a group had concerns. He asked if he would meet with the group, if needed. Mr. Morris responded he would. Ms. Brooks clarified the Downtown Master Plan envisioned a mixed -use building which was not possible on that small property and staff hoped it would be part of a larger project. The project would form two corners on a major intersection of the downtown. 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 8, 2016 Mr. Fitzpatrick thought payment for the land could be used for other projects and was not comfortable moving forward without additional information such as funding and other details. Ms. Brooks explained all the details would be negotiated and brought to the Board. Mr. Fitzpatrick thought the more they moved forward without hard negotiations, the weaker the City's bargaining position was. Motion Mr. Merker moved to approve the Letter of Intent. Mr. McCray seconded the motion. Steve Grant, Mayoral candidate, asked how many stories the building would be and if a traffic study was done and learned, the developer had a preliminary traffic study done and they would hire local residents to work on the project. The motion passed 4 -1, (Mr. Fitzpatrick dissenting.) G. Consideration of Publication of a Notice of Intent to dispose Real Property for CRA Owned Property Located at 222 N. Federal Highway. Motion Mr. McCray moved to approve. Mr. Merker seconded the motion that unanimously passed. A. Consideration of Interlocal Agreement (ILA) between the City of Boynton Beach and the CRA for the Property Maintenance of the NE 4th Street Parking Lot Mike Simon, Assistant Director, CRA, presented the item. The property is owned by the City and if the CRA was to maintain it, an Interlocal Agreement was needed. Vice Chair Casello and Mr. McCray asked about the cost and learned it would cost about $6,700 per year, mostly due to trash pickup in addition to regular maintenance. The City did not have the funds budgeted for it, but the CRA could decide to maintain it until such time as the City could absorb the cost of the capital improvements. Staff recommended the ILA be terminated September 30, 2018. Motion Mr. Merker moved to approve. Mr. Fitzpatrick seconded the motion that unanimously passed. B. Consideration of Approval of Interlocal Agreement between Boynton Beach CRA and the City of Boynton Beach in regard to the Solid Waste Authority (SWA) of Palm Beach County Grant. 7 Meeting Minutes Community Redevelopment Agency Board B oynton Beach, Florida March 8, 2016 Ms. Brooks explained this was the agreement between the City and CRA regarding the aforementioned Interlocal Agreement. The SWA wants to know who will maintain the improvements they were paying for. Some were on City land and the City has to maintain them. The agreement clarified the responsibilities of each. Motion Mr. Merker moved to approve. Vice Chair Casello seconded the motion that unanimously passed. C. Consideration of Performance Audit - Boynton Village, LLC - The Preserve Susan Harris, Finance Director, explained this agreement for the Preserve was signed in 2006. It had a clause to defer requesting payment from the CRA until an unspecified time. Last June, a request was received and the Preserve was denied, because the audit was not performed by a CPA. The developer came back with a CPA audit, but there were some issues. This agreement provides for payment based on affordable housing units and affordable rental units. There were no problems with the rental units, but the developer was to provide 23 units classified as affordable, and of the 23 units, there were only five units still owned by the original owners that were affordable units. This was documented and sent to the developer. A week ago, staff and legal had a conference call with the developer to explain staff could not recommend approval of the $67,000 payment to the Board. The CRA's calculations showed payment should be $45,759. The developer agreed to the change. The request before the Board was to approve the first of 10 payments, of different amounts based on the property values each year. This first payment would be $45,759. Mr. McCray questioned if future payments would exceed $45,759 and learned they could, contingent on the value of the property each year. Most units were funded by State money which limits the income of the residents that would limit the value of the property. Ms. Brooks did not anticipate there would be a significant increase. Vice Chair Casello inquired if Ms. Harris will have to check the units each time they submit a request and learned she would. The project was supposed to be market -rate housing. The Board thanked Ms. Harris for her due diligence Ms. Harris explained from 2005 to 2008, the 23 units did qualify, but the property records showed the original owner went bankrupt. There was a short sale and the units were then purchased by investment firms. A few were sold to individuals that were not affordable eligible. Mr. Fitzpatrick noted the agreement indicated there would be 23 units, but with five units, they would receive the $45,759. Ms. Harris explained the payout is based on the number of eligible units. Ms. Harris explained the process to be followed was percentage based and explained the chart is in the meeting backup and clarified the 8 Meeting Minutes Community Redevelopment Agency Board B oynton Beach, Florida March 8, 2016 issue. Ms. Brooks explained once the developer starts drawing down, the CRA has to keep making payments. Mark Karageorge, 240A Main Boulevard, thanked Ms. Harris for her work and due diligence. He thought there were flaws with the agreement when it was executed. Mr. McCray also pointed out the agreement was executed by the independent CRA Board Chair, not by the current Board. Motion Mr. McCray moved to approve the payment. Mr. Merker seconded the motion that unanimously passed. D. Consideration of Approval of PRH Boynton Beach, LLC's Performance Audit for Year Ending December 31, 2015 for the Casa Costa Project Ms. Harris explained this was the 6 th year of a 10 -year agreement. PRH Boynton Beach, LLC met the requirements of the performance audit and the payment this year was $539,578, an increase from last year. Motion Mr. Merker moved to approve. Mr. McCray seconded the motion. Mr. McCray noted the total funds remaining were $596,376 after the payment was made, and he questioned if that was the amount they had to work with until the 10 -year period was up. Ms. Harris explained the value would change each year based on the assessed values, millage rate and the payments could vary. Ms. Harris clarified the CRA received the $539,578 plus the portion for the CRA. Ms. Brooks explained the actual tax increment funding created by the project was $1,135,954. The amount that is paid to the Related Group is 47.5% which is $539,578. The CRA keeps $596,376. Each year the numbers will vary, based on the Property Appraiser's value of the units. Vice Chair Casello noted last year the Related Group received around $480,000. Until recently, the store fronts were empty. The Related Group was receiving over half a million dollars for the last six years. It did not seem developers had the incentives to keep their end of the bargain to attract retail tenants. He thought a future discussion to set the bar higher was warranted, otherwise funding would not be automatic. He was also concerned if the property was sold the DIFA would go with the new buyer. He did not favor transferring the DIFA and thought the new owner should come to the CRA and renegotiate the funding. The motion unanimously passed. 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 8, 2016 E. Consideration of Purchase Agreement between the CRA and David Hargrove for the Property Located at 146 NW 11 Avenue as Part of the Model Block Project. Motion Mr. McCray moved to approve. Mr. Merker seconded the motion. Vice Chair Casello asked about the closing and legal costs. Mr. Simon explained it would be about $3,000. Chair Taylor thought the acquisition would greatly assist the Model Block Program. Mr. McCray personally thanked staff and pointed out the property was a haven for less than desirable activities. Ms. Brooks explained they will be able to put two homes on the property. The motion unanimously passed. XV. Executive Director's Report: A. CRA Advisory Board Packet for 3/3/16 Mr. McCray noted the CRA Advisory Board packet and commented there was a perception that Board had not been working. He commented the Advisory Board was going through due diligence and he thanked Ms. Brooks for educating them. B. Recap of CRA Plan Consolidation Workshop held 3/2/16 Vice Chair Casello attended the workshop and commented it was pretty well attended. The attendees provided input which was very informative. He commended Ms. Brooks and thought there were many good and exciting things happening in the City. Mr. McCray commented he could not attend, but he thanked Ms. Brooks for the backup. Chair Taylor commented at the last City Commission meeting, there was a group of people concerned about the development of the old Winn Dixie property and he had suggested they meet with the developer. He contacted the developer and a meeting with the group was forthcoming. XVI. Future Agenda Items: 10 Meeting Minutes Community Redevelopment Agency Board B oynton Beach, Florida March 8, 2016 XVIL Adjournment There being no further business to come before the Board, Chair Taylor properly adjourned the meeting at 7:37 p.m. a ,,p r Catherine Cherry Minutes Specialist 03916 11