Loading...
Minutes 03-15-17MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD ON WEDNESDAY, MARCH 15, 2017, AT 6:30 P.M., IN COMMISSION CHAMBERS, CITY HALL, 100 E. BOYNTON BEACH BOULEVARD BOYNTON BEACH, FLORIDA PRESENT: Steven Grant, Chair Mack McCray, Vice Chair Christina Romelus Justin Katz Joe Casello Call to Order Mike Simon, Interim Executive Director Tara Duhy, Board Counsel Chair Grant called the meeting to order at 6:30 p.m. ll. Invocation Vice Chair McCray gave the invocation. Chair Grant led the Pledge of Allegiance to the Flag. Ill. Roll Call A quorum was present. IV. Agenda Approval A. Additions, Deletions, Corrections to the Agenda Chair Grant requested moving item 13B and 14C before XIII. Old Business. Motion Vice Chair McCray moved to approve as amended. Ms. Romelus seconded the motion that unanimously passed. B. Adoption of Agenda V. Legal Tara Duhy, Board Counsel, distributed a quick update on legislation moving through Tallahassee that would impact CRAs. Anyone with questions should contact her. Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 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 had no disclosures or announcements. Vice Chair McCray thanked all for their participation in the voting process and announced another round to go. He thanked all and was grateful for the outcome. Ms. Romelus congratulated Vice Chair McCray on his initial election victory. Mr. Casello congratulated all the candidates that ran in District II on a great and civil campaign based on facts. He attended the Coalition of Boynton West Residential Association meeting and met with Bonnie Miskei and Davis Camalier. Chair Grant met with Andrew Podray from Casa Costa earlier in the day, the owners of Master Craft and went to Soul Baker; in Ocean Palms Plaza. B. Informational Announcements VII. Announcements & Awards A. 3rd Annual Boynton Beach Blarney Bash Mercedes Copans, Special Events Coordinator, announced the 3'd Annual Barney Bash to be held on March 17th, from 6 p.m. to 10 p.m. on E. Ocean Avenue. Ocean Avenue will be closed between NE 1St Street and Seacrest Boulevard. The Avenue will be lined with merchandise vendors, CRA merchants and Bailey Blendz. Live music will be provided by steampunk band Clockwork Knotwork and Celtic Mayhem. There will also be a performance by Aranmore Academy of Irish Dance. Craft beer from Due South, Copperpoint and Devour Breweries will be available. Food is available from the Food Truck Invasion and Green is the theme. Patrons are encouraged to dress festively and youth and adults can enter the Shamrock Costume Contest. The event is rain or shine. (Ms. Romelus left the dais at 6:36 p.m.) B. Movies in the Park Ms. Copans announced the next Movies in the Park will be April 7th featuring Hop, an animated PG comedy, starting at 8 p.m. instead of 7 p.m., due to the time change. Food vendors will be on site and movie goers will be entered into a raffle to win gift certificates from local CRA merchants. E Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 C. Career Expo at Carolyn Sims Center Thursday, March 23, 2017 from 8:30 a.m. — 12:00 p.m. sponsored by the CRA and CareerSource Mr. Simon announced this event has a long list of potential employers, which he read. He congratulated Bonnie Nicklien for her efforts on the Expo. It was noted this event was advertised in the community and in the City water bills mailed to customers. It was hoped people would be placed and Mr. Simon requested all spread the word. (Ms. Romelus returned 6:38 p.m.) Mr. Casello suggested the Expo be staggered in the future to include evenings. VIII. Consent Agenda A. Approval of Period Ended Feb. 28, 2017 Financial Report B. Monthly Purchase Orders C. Approval of CRA Board Meeting Minutes — Feb. 14, 2017 D. Approval of Service First Processing, Inc. for Commercial Fapade Improvement Grant Program E. Approval of Service First Processing, Inc. for Commercial Construction Permit Incentive Program IX. Pulled Consent Agenda Items: None. Motion Mr. Katz moved to approve the Consent Agenda. Vice Chair McCray seconded the motion that unanimously passed. X. Information Only A. Public Comment Log B. Marketing and Business Development Campaign XI. Public Comments: (Note: Comments are limited to 3 minutes in duration) None. XII. Public Hearing: None N Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 XIII. B. Consideration of Special Events Grant Payment for Application submitted by Boynton Beach Dr. Martin Luther King, Jr. Celebration Committee (Heard out of order) Greg Murphy, MLK Jr. Celebration Committee, commented Susan Harris, CRA Finance Director, advised the grant payment had to come before the Board for approval. Chair Grant favored the MLK Committee becoming their own legal entity so the Board could issue checks to the Committee. Mr. Murphy thought at one time it was entertained and he agreed to bring the issue to the Committee. Vice Chair McCray recalled funds for the MLK Committee had been funneled through the City. Mr. Murphy was aware the MLK Committee started out with its own account, but it was later dissolved and monies were channeled through the City. Chair Grant thanked him and the Committee for the great work and commented the event was a success in spite of the rain. Mr. Murphy thanked all, especially Ms. Copans, who did an outstanding job. Mr. Casello thought it was in the best interest of the City and CRA if the Committee formed a legal entity versus the status quo. Attorney Duhy explained it is legal, but becoming a legal entity may make payment more efficient. Motion Vice Chair McCray moved to approve. Ms. Romelus seconded the motion that unanimously passed. XIV. C. Consideration of Approval of Costa Center, LLC's Performance Audit for Year Ending December 31, 2016 for the Casa Costa Project (Heard out of order) Mr. Simon explained the performance audit for Casa Costa Center LLC, which occupies the commercial space in the Casa Costa building, under the DIFA agreement is required to provide the CRA with the annual performance audit. Once reviewed, the next step is to bring approval of the payment to the CRA Board. He noted this was year seven of a 10 -year DIFA and the amount to be approved is $539,163. Mr. Casello saw a different amount and learned two payments were made and the meeting materials provided a history. Motion Vice Chair McCray moved to approve. Mr. Katz seconded the motion. Mr. Casello asked if the 19,000 square feet of commercial space included the rooms that are considered like a hotel or if it pertained strictly to the storefronts and learned it was for the commercial bays within the development. At this time approximately 2,000 square feet is rented. Mr. Casello asked what was the most they had rented in the last six years. Mr. Simon did not know and commented it fluctuates year-to-year. Mr. 0 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 Casello commented the only requirement for the DIFA is to make an effort to rent so many square feet under fair market value. Mr. Simon explained the idea was to make it an affordable commercial space to be marketed as such. This was an early version of the DIFA trying to incentivize development and since then, the Board is supportive of all the protections the Board wants to implement in future agreements. He gave kudos to legal and staff over the years for trying to learn from past experiences to protect their interests without driving development away. He noted there is a balance. Vote The motion unanimously passed. On a different matter, Vice Chair McCray received a memo there is an employee retiring and an in-house promotion. He thought staff should address it. Motion Vice Chair McCray moved to reconsider the agenda. Mr. Casello seconded the motion that unanimously passed. Mr. Simon announced he received a letter from Susan Harris resigning after a successful 10 -year journey with the CRA. She has been an outstanding member of the staff with eight plus years of clean audits which is something other CRAs would want to model. Ms. Harris has been a good friend and mentor. Staff has been preparing for her retirement and extended an offer to Vicki Hill to take over the position effective June 15t which is Ms. Harris's last day. This is to give time to provide for the transition and interview for a finance specialist. Mr. Casello appreciated her work to ensure all audits were clean and looked forward to Ms. Hill coming on Board. Ms. Romelus thanked Ms. Harris for her assistance, guidance and dedication. ON111�01rg1>T4,= A. Consideration of Purchase and Development Agreement for the CRA owned property located at 222 N. Federal Highway, a/k/a the Ocean One Project Mr. Simon explained this item returned to the Board after a CRA Advisory Board review. The document is the most recent and acceptable version to the Ocean One, LLC development team. The purchase price of the property is $10 and the closing date is 30 days from Site Plan approval by the City Commission which would be at the end of April 2017. The developer offered to provide the CRA with a special warranty deed to protect the Agency if the project did not take place within a two-year period and improve the existing CRA property to a public plaza, irrigated the site with landscaping and a Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 sidewalk during the time in which they would be waiting to start construction. There is a two-year window and all indications with the team is they are excited to break ground. They are in the Site Plan approval process now. He commented the CRA Advisory Board recommendations were supplied on the agenda cover and backup. Linda Cross, 65 Casa Loma Blvd, Boynton Beach, explained it is within CRA's mission to eliminate slum and blight and for the CRA to give the property to the developer for $10. The Advisory Board supports it. She noted normally when there is a closing date, the CRA does not turn over the property until constructing financing is approved. This request was to obtain the property 30 days from site plan approval. The Advisory Board thought there was not enough protection to the City if the CRA sells it to the developer for $10 and they do not build. The developer could sell the property. She thought a lien should be placed on the property until construction was finished or offer the CRA a right of first refusal if they want to sell the property. One thing the CRA Advisory Board felt would bring more economic development was the phase II hotel site. The Advisory Board thought the developer should provide several letters of intent or develop phase II first as the hotel will provide more jobs. The last issue they had was to provide additional public parking on the site or nearby in the Town Square area equivalent to the value of the property which is $460,000. The Board wanted to ensure a financing commitment was in place prior to turning over the property. Mr. Casello asked about the special warranty deed. Mr. Simon explained it is a mechanism to secure an action and a good legal method for enforcing or allowing it to be known there is an expectation within the two-year period, that if not constructed, it would be recognized, as part of the deed, that it needs to be done as part of the transfer. Currently there is no approval in the contract that allows for a transfer with or without approval. Bonnie Miskel, on behalf of the developer and property owner, explained her client attempted to develop the site and had an understanding with the former CRA about the terms. In 2007, they moved forward and had paid for construction drawings which were nearly $1 million and the deal fell through. The reason this was crafted differently was because the developer spent nearly half a million on the site plan, and if the Board decided they did not want to allow the project, the site plan would be invalid. The owner was not willing to spend another million dollars and put it at risk unless he closed on the site and knows the property is there for development. Attorney Miskel also commented the developer agreed to build a public parking plaza until they break ground. While negotiating this, the question arose what would the CRA use the land for as it is a narrow property which was further narrowed by the expansion of Federal Highway and Boynton Beach Boulevard. The concept of a public plaza area was suggested and they incorporated it into the document to assure the CRA, if the project was not built timely, there would be a public plaza area. If there was any transfer, there would be a transfer of the value of the public plaza. They felt they were protecting the public by inserting it which is an innovative approach. They can close on Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 the financing, but the market could plummet and it may not be built, but at least with this, there would be a public plaza or park until something comes out of the ground. Attorney Miskel explained the right of first refusal is not in the document and they did not object to adding it. She noted public parking is included in the proposal coming before the City Commission which went before the Planning and Development Board. Mr. Casello asked if they would exceed the parking requirements and learned they would. Chair Grant noted the developer applied for TIF and they did not have an agreement for that. He was not willing to sell the property and development of the property for the park as it is not the best use of the land. If the City wants to use it for another municipal reason, they could use eminent domain for the use if the developer does not build on the land. He wanted to negotiate the TIF before they settle the agreement. Ms. Miskel suggested they be run concurrently. Mr. Simon asked how long and at what point does the developer have to take physical possession of the property as they go through the site plan process and permit review. Attorney Miskel noted it was timing. They are expected to appear before the City next month for the site plan. If they can accomplish all of this by then, it would not slow them down, but if not, they would not commence construction drawings until all is wrapped up. Mr. Simon thought the May meeting would be ideal because at some point, the CRA would have to sign on to the permit review application if both parties agree. They are already part of the site review process. Ms. Miskel explained they do not want to delay the project because the market is supportive of the project. Chair Grant apologized noting they were already in February, but the item was received the day after the CRA Advisory Board meeting. April 6th is the next CRA Advisory Board meeting and then the Board meeting on April 11. Mr. Simon thought the review was possible and the May meeting would be the fall back. Ms. Romelus recalled Ms. Miskel had indicated they would take time to speak with the community regarding jobs and had not seen anything in the document. Ms. Miskel explained it is in the incentive agreement and the Board will see it as an A and B item on the agenda. They are working with a consultant who has a special program in Delray and Pompano Beach that does much more than what is previously done and he will speak to the Board that evening. Ms. Romelus wanted to see the document beforehand in case there are amendments. The document would be forwarded to Mr. Simon. She pointed out the community is 30% minority and she wanted to see those numbers reflected in the local contractors hired and permanent employees. Motion Ms. Romelus moved to table the item to next month so they can vote on the two items together. Mr. Simon asked if there was any other direction other members may want to give to expedite the process. Attorney Duhy explained this project is coming before the Board as the CRA and City Commission so tonight's comments and directions to staff should be directed to the purchase and sale agreement and the TIF request and not the 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 site plan. Mayor Grant noted parking is an issue and they are looking forward to having a hotel in the downtown area. Mr. Casello noted the project has been pretty well vetted over the last few months. Vice Chair McCray agreed as long as they agreed to table it. Vote Mr. Katz seconded the motion which unanimously passed. B. Consideration of Special Events Grant Payment for Application Submitted by Boynton Beach Dr. Martin Luther King, Jr. Celebration Committee This item was heard earlier in the meeting. C. Status of the Ocean Breeze East Project — NuRock Development Partners, Inc. Mr. Simon explained NuRock requested an extension and did not receive approval of an aware from the Low Income Housing tax credit application program and did not elect an extension. Prior to that, the Board had indicated they were not in favor of granting the extension. They did submit a letter in the backup to terminate the contract effective February 27th and their deposit was returned. The contract with NuRock for Ocean Breeze East was terminated. Chair Grant noted they issued an RFP and the year before they got a letter of intent. He proposed waiting a few months before issuing another RFP to see what happens with the Town Square. There were no objections. D. Consideration of Community Benefits Agreement between the CRA and Heritage at City View Housing Partners, LP (NuRock Development Partners, Inc.) for the 2.97 Acre Project Site Known as MLK, Jr. located in the Heart of Boynton Tabled 10/10/16 Motion Vice Chair McCray moved to remove from the table. Mr. Katz seconded the motion that unanimously passed. Mr. Simon noted items C and D are tied together. The application for the Low Income Housing Tax Credit program is with the State. There was a delay opening, processing and scoring the applications and issuing lottery numbers until April, due to challenge of the local contribution preference points that projects would receive that have local government support. The applications will be opened in April and the Florida Housing Finance Corporation will meet on May 5 and give their official rankings. The CRA is in a holding pattern between now and May 5th. The Community Benefits Agreement can be discussed, but it had been tabled pending the award. The deadline for the contract is June 30, 2017. n Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 Mr. Simon has spoken with NuRock Partners several times. The Community Benefits Agreement (CBA) has not come up. He did not believe the last document the CRA submitted with overly objectionable to them, but there were some points NuRock wanted to discuss. He can reach out to NuRock to be more specific and handle it prior to the May award. In the event they are funded, they will be further ahead in the CBA. Mr. Casello asked if the Coalition of Clergy is made up of City residents and learned the majority were not residents, but they represent City residents and the churches are in the City. Mr. Casello asked if they should be residents. Mr. Simon responded it is up to the Board. This was previously discussed and the one detail that was shaky was the Coalition of Clergy is a group of people and a successful committee, but as an entity, they did not have legal authority to sign as a contract participant. Some sections of the agreement allow the Board to select a liaison to connect with a neighborhood, community development organization or other non-profit for assistance with the CBA. Chair Grant agreed the majority should be residents, but the people who work in the City have a stake. He thought they should have some sort of ratio for residents to be part of the CBA and there was agreement to put it on a future agenda. Vice Chair McCray suggested calling the Coalition as they work in the City. He wanted to hear from them first. Mr. Simon agreed to contact the Coalition of Clergy. E. Status of the 2.97 Acre Project Known as MILK, Jr. South — NuRock Development Partners, Inc. Motion Vice Chair McCray moved to table item E. Mr. Casello seconded the motion that unanimously passed. F. Update on 480 E. Ocean Ave and 211 E. Ocean Ave Projects Mr. Simon advised the 480 E. Ocean Avenue project received building permit approval on February 3rd and can move forward with construction. He provided pictures on March 8th on the construction that began. At a prior meeting, the timeframe in the contract had been specific and adhered to in both contracts, but the one time frame not specified was the time period when the developer has been allowed to receive final building permit approval once they submitted their permit application. Mr. Simon explained this is partly because they do not have controls in place over City staff conducting the reviews. They were aware of the time delay, and have access to Naviline to track permits. They meet with city staff regularly and have been kept up-to-date, but they do not have strong arm enforcement for that window. In reference to the 211 project, the developer submitted for their building permit on December 30th which may have caused a delay. There were comments from the 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 planning staff they are responding to and also interviewing contractors and restaurant operators. Mr. Simon assured all the developer is sincere in his interest in opening a restaurant. Staff was watching the development process timeline, which has a short timeframe to start the process upon approval of the building permit. Mr. Casello heard the developer did not have anyone to run the 211 restaurant and also took note of the back and forth between developers and staff regarding comments which delay the process. He asked if they can set parameters when asked for technical comments to respond in a certain amount of time. Attorney Duhy explained the CRA Board can put in purchase and development contracts when contemplating this process with the City, the developer responds to comments within a certain time. On the City side, the City could make changes to policy and Codes to do the same. Mr. Casello favored the requirements on both sides. G. Discussion regarding CRA Funding Requirements for Project Areas known as the Cottage District Site and Ocean Breeze East Site Mr. Simon reviewed the Ocean Breeze East and Cottage District sites, which did not receive any responses to the RFP that was issued. Since then, they had several meetings with successful housing development firms regarding the site, pitching their perspective, market conditions, what is viable and received good feedback. It was clear to staff that it will take a level of financial commitment or a partnership for these projects to be developed and appealing to a builder/developer. In order to appeal to a builder/developer, it was clear the site, in its current condition, is not a site a developer would be willing to risk acquisition of considering site development, road development, public improvements and construction of the homes as an all -in project like the Board would see on a construction project. The Board did see that from NuRock and Brownstone on the Ocean Breeze and MLK site, because they had the opportunity, financially to obtain the tax credits to make the project viable. He wanted to provide a financial update at the April meeting and would detail financial expectations the Board would accept and issue an RFP as a partnership. The CRA would commit to a dollar value for improvements and underground site work, similar to what was done with the Ocean Breeze West site and then the developer can manage that process and vertical construction or the CRA would prepare the site and the developer would take it from there. The Board needs to decide what they are willing to do, because both sides of the streets; especially the Cottage District, would need those improvements to make a project like this stand out and be appealing to workforce housing, buyers and have homes slightly above and below that rate. Both sites are close to Town Square, but the risk is limited to proximity to where they feel the market is. He will present those figures to the Board and then have discussion. Mr. Casello thought it is a prime property and ideal for workforce housing. He looked forward to learning the cost to improve the property's curb appeal and purchasing other properties on the lot to help the project along. Mr. Simon advised they have had discussions with the Community Caring Center about their expansion and relocation. 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 Mr. Katz noted if the Board wants the project to be developed, they have to allocate funds for those improvements to roadways, sidewalks and lighting, but they should be cautious how they spend money on different things in the future. It is a big project in a centralized area and they should be conscious of the budget and make prudent decisions. He wanted to ensure, if spending funds, to make home improvement subsidies or acquire foreclosures or short sales for the two recommended housing programs, they tag team that initiative with these projects and target homes in the surrounding area to raise the value of future home developments in Ocean Breeze East and the Cottage District, Vice Chair McCray asked if there were funds set aside for this and learned only $75,000 was allocated for this site. Chair Grant asked Ms. Harris to provide a six-month update where the projects are and where money is in the budget. XIII. New Business A. Discussion and Consideration of two Letters of Intent to Purchase the CRA Owned Property Located at 711 N. Federal Highway Mr. Simon explained this item was originally a single letter of intent on February 11th for the property known as the Amerigas site that was received from S. Florida Marine, owned by Mr. and Mrs. Woods, to acquire the property to expand their business and carry a new line of marine vessels and outboard motor boat sales. They offered a purchase price of $350,000, putting 10% down and using conventional mortgage financing through the Small Business Administration for the balance. They met with the City regarding site improvements and meeting Codes and the CRA Plan. The renovation is anticipated to be about $200,000 and would take a year to complete. They were committing to $65,400 of the $200,000 and would look to the CRA for a match of $65,400 and balance of $69,200 would seek additional assistance from the CRA in the form of a grant. After their submittal and discussion at the CRA Advisory Board meeting, staff received a second letter of Intent from Coastal Customs International Tackle Company, from owners Brian and Michael Reimer. They have a business in Boynton on High Ridge Road, manufacturing high and medium -end technologies for marine vessels and they want to expand their business to the site. They offered $365,000 to the CRA, paid in cash without any financing and they contribute $150,000 of their funding for renovations of about $350,000 They are seeking matching grants in the amount of $71,550 and an additional $31,000 straight grant. A balance of $96,500 in their budget for renovation and there was reference made to a new job creation grant to make up the difference. Both parties were present to answer questions. Chair Grant noted one business was reviewed by the CRA Advisory Board and the other did not. He asked if the second business should go before them as well. There was agreement both parties would speak. Vice Chair McCray asked if there were any 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 gas lines at the Amerigas site and learned there were not. There was no contamination at the site according to the Phase I study and the tanks were moved. Janna Wood, 725 N. Federal Highway, explained they have owned the S. Florida Marine property for the past seven years, and been in business for the past 17 years. They provided over 10 jobs and plan to expand the business with a new line of boats. They are contemplating partnering with South Tech Academy and offering jobs to students. Mr. Casello asked how many new jobs were estimated and learned there would be 6 to 10 new jobs. They plan to have a ship/shore store in the front part of the business selling dock lines and equipment. When boaters forget something, a store would be open on Saturdays from 6 a.m. or 7 a.m. to 3 p.m. or 4 p.m., and also open on Sunday morning when people fish. The back of the facility would accommodate customization of a new line of center consoles. Boats come with engines and T -tops, but they do not have their electronics on the boats which the employees would add. They would have additional customization employees handling the electronics for the new boats arriving. His first boat arrives tomorrow in time for the boat show. They participate in many boat shows in South Florida and do a lot in the community to attract people to Boynton Beach throughout the year. Mr. Casello asked if they had tried to purchase the property and learned they did. Amerigas had no intention to sell it as they only use it for propane for Manalapan and Briny Breezes. Mr. Casello asked if they would display or store boats on the property and learned they would. They met with the City and there would be four boats behind a white picket fence as they currently have with two tiers of landscaping, a monument sign up front and an additional privacy fence for boats coming in they do not want the public to see. Mr. Casello asked if South Tech students would be paid employees and progressively learn to customize the boats and learned they would. They will help train graduated students or those out of school early. There were employees present and businesses from around the community. They currently have eight employees. Six are from Boynton Beach and one just moved out of the City. Vice Chair McCray asked if the unloaded boats would be stored on Federal Highway and learned they would not. They worked with the HOA across the street. They would open the expansion and drive from their location to the adjacent location without entering on Federal Highway. Bigger boats use Gateway Marina so they do not need that type of equipment at the facility. Mr. Casello asked if they do repair work. Mr. Woods responded they customize and service boats, but most work is electronics, stereo equipment, new upholstery, tower equipment and warrantied work. Employees did not need a mechanics license. Chair Grant asked if they would add a sidewalk to the west side of the property and learned they would. When they purchased their 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 current property, there was a vacant alleyway to the west the City maintains. They would be interested in purchasing that land as well Mike Reimer, Coastal Customs, 3455 High Ridge Road was excited to submit a proposal and explained they also do customization and are a manufacturer. They want this site to be a showroom and keep their facility on High Ridge Road. They live in Marina Village and they were trying to keep everything within the City as their employees are in Boynton Beach. The expansion would result in 12 new positions. They have eight positions full-time at their other location and they are open six days a week. They interviewed four people and have four people in mind and they all live in the City. This site would be a high-end showroom. They currently deal with 12 boat builders and are growing faster than they can keep up. The overview with the proposal had higher renovation costs. They wanted to invest in curb appeal and the interior of the building. They designed more green space on the exterior and did not load the site with a parking lot. There will be areas that will be landscaped and have green space with a patio area. Ms. Romelus asked if there was enough parking to accommodate a showroom and learned there was. Mr. Casello asked if this business would complement the Woods' business and learned it would and they are friends. Chair Grant asked, if in addition to acquiring extra space on NE 6t" for sidewalks, if they would take the City's property on the railroad tracks and learned he would. The area has green space and people can come in and have lunch. He wants the showroom to be a destination. He has been in business for three years. The site plan was designed to look like Marina Village. Ms. Romelus asked if the 12 employees will be full time and learned they would. She noted the application indicated 6 to 10 new employees would be needed and inquired why 12. Mr. Reimer responded they thought they would be open five days, but need to be open for six; hence the change in the number of employees. Mr. Simon explained the CRA initiated an alleyway abandonment so a portion of the land by the railroad tracks would be incorporated into the property. Chair Grant opened public comments Linda Cross, Chair of the CRA Advisory Board, explained they did not have the benefit of the second letter of intent, but she received it today. When the Advisory Board looked at the analysis, the purchase price is lower than what the CRA paid which is typical of CRAs as it alleviates slum and blight. They considered three aspects with South Florida Marine which was to have a CBA due to the amount of CRA funding; no on street parking; and the property be brought to Code and maintained per Code and eliminate any grandfathered provisions. Considering what the CRA paid for the property, after the purchase price with S. Florida Marine, there was a cost to the CRA of $408,000. With Coastal Customs, it would only cost the CRA $363,000 and had a lot more skin in the game. The CRA Advisory Board suggested which ever one proposer was selected, the agreement include the three stipulations. 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 Doug Besecker, owner of Easy Pay Tire, south of the subject property advised the Woods have not disrupted their business at all and they were dealing with Amerigas for over 30 years. Their current location was previously an abomination. The Woods made it beautiful when they moved in and it is a high-end facility. They want a retail facility. He spoke to neighbors before and behind and they support The Woods and South Florida Marine. Vick Arena, Boynton Beach resident for over 40 years, commented MasterCraft is a high-end boat and the premier boats in America. If reading the City's motto, "America's Gateway to the Gulfstream" what a better line of boats than theirs. He noted the supplies they will have are available in West Marine in Delray and another in West Palm Beach. When going to the boat ramp, it is difficult to pick up something they would offer. Christopher Knapp, General Manager of Tijuana Flats, supported Mr. and Mrs. Wood and MasterCraft. He thought it was a great idea to help youth and students by working with South Tech and a great opportunity for younger residents to learn work ethics as it is a stepping stone for their future and their career. Bill Walsh, Boynton Beach resident, explained Mike Wood is his son-in-law. He saw them take a distressed property and turn it into a beautiful dealership. Down the line and looking to the future, his two grandsons grew up in the business and both are excellent boat technicians and they are the future of the company. They have been in business seven years on Federal Highway and built the business 10 years prior to that. He smiles seeing what they accomplished and are ambassadors for the City. The owner of Guttersmith on 6t" Avenue commented since Mr. Woods bought the building, it changed the area completely and it is a big improvement from what it was. If allowed to expand, Mr. Wood will improve this property in the same way. Mr. Casello asked Coastal Customs if the CRA sells him the property if he would agree to the same conditions the Woods have agreed to including the three stipulations discussed earlier and learned he would. Mr. Katz objected initially to the acquisition of the site, but commented this item is purely a business decision to the CRA and the Board's decision should be made based on dollars and cents. If S. Florida Marine will increase their offer, the Board could determine where the CRA office ends up and they should make the decision based on that. He would support whoever offers the most and decreases the total CRA investment. Chair Grant did not see it as a dollars issue. South Florida Marine submitted the first letter of intent and he gave them some preference, but understood, in reference to 22 N. Federal Highway, about giving away the property for less than its worth. He supported a reverter clause or no interest lien, so if they decide to purchase the property, it would 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 not be a windfall for the designated party. South Florida Marine is already there as an expansion of their business. The CRA wants to help current businesses. Coastal Customs could work with the CRA to find another property. It makes more sense to sell the property to South Florida Marine. Mr. Casello thought Coastal Customs would complement South Florida Marine and side -by- side, would make an excellent partnership. It is prudent for the Board to get the most they can for the property they sell. He favored Coastal Customs. Mr. Katz commented, with regard to who gave their letter of intent first, the prior CRA Director thought the property would go to the adjacent business. He did not think it was fair to penalize or reward someone that offered the letter first because the property has not been advertised. He had an extended discussion with the prior Director. The Board was told the property could be a park or fire station, when it was always intended to go to the adjacent property owner. The Board has a lot of plans that cost money, and although it is only a difference of $15,000, if they squander $15,000 or $20,000 on each decision, it adds up to a lot. He would support which ever company had the highest offer. As to the redevelopment of the grope Ly, they did not have an estimate of the return to the CRA on the increased property tax value. It is an economic decision. Vice Chair McCray commented S. Florida Marine endured Amerigas for seven years. He represents District Il, heard the testimony and favored S. Florida Marine as they were there first. Ms. Romelus asked Mr. Simon if there are other properties that could accommodate these businesses. Mr. Simon noted the two-story store to the north which is being demolished did not have the needed parking relative to the square footage of the building. The further north the narrower the lots become, the less square footage there is and the development potential decreases up to MLK and Federal Highway. It is very limited. Mr. Simon explained the CRA would work with either party to find an appropriate location, noting there are separate owners and pricing for those parcels. Ms. Romelus noted it is prime property and the Town Square should attract people to the City. If S. Florida Marine wants to submit anything to be more competitive to Coastal Customs, she would consider it, otherwise she favored Coastal Customs. Mr. Wood explained they would match the $15,000. They could sell and move elsewhere to expand, but they want to connect to their existing property and not have as many boats tightly knitted into the property. To move to a property that is not attached to them would result in having to attach boats to a trailer, hauling them down the road, and back and forth. It was proposed the Woods reconsider and submit new documents to Mr. Simon. Ms. Woods noted they plan to be at the site more than the 10 years. Ms. Romelus asked about South Tech. Mr. Woods responded South Florida Marine spoke to the administrator that runs the marine division. He also had no problem agreeing to a soft second on the property if they sold the property in five years. Ms. 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 Romelus inquired about site improvements. The front of the store will be open at night so the equipment, new boats and marine decorations would be visible. Trees would also be used. Ms. Romelus asked what they would be willing to do with the CRA to hold events that would attract people to the business and the City's marine life. Mr. Wood explained they have held demo days at the boat ramps, have free get togethers and test drives to Two Georges events with their boats and have used the Two Georges valet to advertise learning to surf. They have participated in parades in most years and had a booth at the Pirate Fest. Mr. Simon explained the City is requiring a 10 -foot landscaped setback from the sidewalk. The site plan is different as it is a marine vessel sales lot. There is more of a retail -only feel from Coastal Customs as they have different uses. Landscaping, lighting and buffering for South Florida Marine would meet Code and enhance the site. There would be three boats on Federal Highway, one boat towards 6th Avenue on the new lot, and a small white picket fence, shrubs, dock pilings and thick rope. Motion Mr. Katz wanted to table the issue to see who would pay the most, and also noted there is a property across the street that houses the CRA office, that could be made available. He wanted to table the item for one month to engage in bidding on the property and review the financial feasibility to use the CRA building and property as the CRA may potentially move to the West Wing of City Hall. Ms. Romelus seconded the motion Mr. Simon explained the motion is to table and allow 30 days or to the next meeting for the two entities to reconsider their proposals and resubmit them. The suggestion was, as part of the motion, they submit sealed bids by a certain date and allow staff to advertise the 30 -day public Notice of Intent to dispose of real property and potentially receive other offers. Attorney Duhy explained the 30 -day period to publish is a legal requirement; sealed bids are not. Chair Grant commented if not a sealed bid, once it is received it becomes public and someone could come and review it and offer more. Mr. Simon explained the public notice is to advertise the property is available to the public and the CRA may receive additional bids. Thirty days would be April 16 or 17th. It would be reviewed by the CRA Advisory Board on May 4th and return to the CRA Board on May 9th. Attorney Duhy explained if the Board made a selection at this meeting, staff could publish the advertisement to negotiate a contract to bring back to the Board next month. After the close of the 30 -day advertisement period, the Board will have received all the proposals the Board is legally required to take. The legal provision bars the CRA from executing a contract without advertising 30 days prior. At the April meeting, the Board would select a proposal. After the April meeting, staff would negotiate a purchase contract which will be brought to the Board in May and at that time the Board could 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 approve and execute the agreement. Attorney Duhy explained the motion, if amended, could request certain requirements. Mr. Casello wanted drawings and thought the next round of proposals would be final. He also expressed concern bidders would keep upping the other which is why sealed bids would be requested. Vice Chair McCray thought it was not fair to the individuals who submitted proposals as their proposals were public record. He advised he would oppose it. Attorney Duhy explained there is a motion to table with amendments which were the submission of sealed bids and to allow staff to advertise the property legally as required. Vote The motion passed 4-1 (Vice Chair McCray dissenting.) Mr. Katz requested consensus for CRA staff to analyze the potential of the CRA building going to market if both businesses expand in that location. Mr. Katz understood there is space available in the West Wing for the CRA. Chair Grant wanted to discuss moving the CRA to the West Wing with the City first to ensure the CRA has a place to go. Mr. Katz recalled there had been prior discussion of it and direction was given to staff, in reference to tabling the item, to allow the bids and accommodate both businesses which would be a win-win. The CRA and City would have to review the matter before the next meeting. Mr. Simon requested a date certain to submit the bids to the Board prior to the CRA Advisory Board on March 28tH Staff recommended the bid deadline be March 316t. Mr. Katz asked, in the event one of the proposers withdrew a request for funding from the CRA, if the Board was bound to the highest bidder or best overall financial transaction. Attorney Duhy clarified the motion was, the Board tabled consideration, to have them present sealed bids and the direction is the most economically beneficial program that results from the bids is the one the Board will likely select. Mr. Simon will analyze them and provide a breakdown of purchase price, incentives requested, developer contributions and more so the Board will have a side-by-side comparison outlining the overall financial benefit to the CRA. Mr. Casello noted if bids come in higher, there could be less renovations on properties that need to be brought up to Code and thought it was just moving money. Attorney Duhy agreed and pointed out the Board will have the opportunity to discuss the issue because the Board is outlining why the issue is tabled and for sealed bids to come in. There are a lot of considerations that go into a proposal. The Board had already requested a site plan. The full package will be reviewed. This is useful information for the proposers. This information will not be contained in the notice because the notice is a required notice declaring the CRA intends to sell the property, which gives the opportunity for anyone else interested to approach the CRA. It does not detail the purchase price. It only lists the address. Chair Grant asked if it could be included. Attorney Duhy explained if included, the notice would be more an RFP. 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 Ms. Romelus asked if the two entities have the opportunity to bid on the project with a deadline of March 31St, the CRA was allowing for outside entities to bid. Attorney Duhy explained it was not. Each time the CRA decides to dispose of property, the CRA has to legally advertise it and the staff was asking for permission to do so concurrently with the request from these purchasers which allows the process to move quicker. She commented someone could send in another letter of intent. Legally, the CRA has to post the notice. The 30 days has to lapse before execution of the agreement. If the Board agreed to a price less than fair market value, it would require approval from the City Commission, Ms. Romelus asked what if someone came in after the CRA meeting with a higher bid and learned after the next meeting, staff will negotiate a contract. When another letter of intent is received, it will be put on the same agenda with the purchase agreement staff negotiated. In May the Board would be looking at a new letter of intent with general parameters and a draft purchase and sale agreement. If it is the CRA's desire, the Board could direct Mr. Simon to move forward with the other letter of intent. Chair Grant requested voting on the motion to submit sealed bids by March 31St. Mr. Katz thought if it resulted in both businesses locating in the area, it would be worth the one-month delay. Vote Ms. Romelus so moved. Mr. Casello seconded the motion that passed 4-1, (Vice Chair McCray dissenting.) B. Consideration and Discussion of Social Media Outreach Program Mr. Simon explained this item was a discussion of a pilot program offering a social media consultant in partnership with CareerSource. There would be an application and needs assessment. Staff wanted to provide local CRA businesses with social media and marketing assistance at no cost to the business, and track the results through Facebook and Instagram. Staff was already using newspaper, billboard and website advertising at the CRA's expense. The concept arose from a discussion held months ago about creating another Economic Development Grant. The CRA would hire an employee for local business to obtain interior and facade grants, and obtain a grant to hire the employee through CareerSource which may evolve into a full-time job. Staff has been soliciting feedback from existing grant applicants and other businesses, and there is a buzz in the business community about using social media. The CRA would provide the service to businesses meeting the criteria at no cost to them. The program would be one-year commitment for funding. Quarterly reports would be provided including statistical information and incorporating techniques, sales and financial tracking. Nikole Konieczny, Manager, CareerSource Work -based Learning, worked in partnership with CRA staff and explained this is a pilot program to help businesses bring in more revenue. She will be recruiting and vetting, as part of CareerSource, qualified iN Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 candidates and she will be present for the kick-off orientation for the staff members to offer any additional assistance that is needed. Chair Grant noted the consultant wages are paid to ManPower and asked if they are a third party vendor or if they will be paid through a 1099. Mr. Simon explained a 1099 will be issued similar to a contract consultant. The individual would not be a CRA employee and would be a sole proprietor with a Business Tax Receipt. Ms. Konieczny explained they started to plan the program at six months and it evolved to a year. Chair Grant favored two people for 26 weeks and thought it was a great opportunity for the person selected. Mr. Casello asked if the program only focused on social media and learned it would. A needs assessment will be conducted to ascertain what businesses were looking for. Mr. Casello asked if this could be conducted through the City and learned staff could work with the City for activities and businesses in the CRA, but they are limited to the CRA District. The CRA would also utilize the person to augment the social marketing the CRA staff was undertaking, helping them link to the businesses, and take a community connection approach as all can do a better job with social media. Mr. Simon advised the CRA got results from its postings and commented anything they can learn from the professional on how to track and get a return on investment would be adapted to the City and CRA and would be available for uses as directed. Mr. Casello did not think this was a CRA's function to set up social media sites. Mr. Simon explained it is a marketing method to promote businesses and it was more economic development oriented. These are business promotion platforms from which a small business that is not technology savvy could benefit. Chair Grant explained it is not just for businesses. It is for any event in the CRA as well. Mr. Simon advised it is strictly for CRA businesses, not the CRA itself. Chair Grant asked if there could be Community Benefit Agreements. Ms. Konieczny responded they were looking at college graduates taking digital or media classes at Palm Beach State College at the Lake Worth campus as the majority of the students live in the Lake Worth and Boynton Beach area. The CRA has the final say on hiring. Vice Chair McCray asked if this has been used in other cities and learned there are preliminary discussions, but not as of yet. Boynton Beach would be the innovator. Vice Chair McCray asked about Ms. Konieczny's qualifications which she gave. She specializes in internships or direct placement. CareerSource is a non-profit, she does not make a commission, and she does this because this is what she loves. Vice Chair McCray wanted to try it for half a year. Ms. Romelus recalled a discussion with Mr. Simon the CRA would benefit from the program by seeing if the staff's advertising methods were effective. Mr. Simon responded they could. It will also help further the CRA's mission to the businesses. They would talk about grant programs, events, and postcards from existing businesses to promote CRA events. The CRA could employ one, two or three people to handle this specific type of work. If there are other avenues or programs that grow out of this or other adjustments the Board wants to make, it is easy to do and it is a fairly small 19 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 investment to potentially start a program other communities may model. Ms. Romelus asked if staff created measurable goals and learned they would. They will look for increases from a baseline that is established for that business and have more structured goals in the pilot program. Ms. Konieczny responded they would look at quarterly reviews based on revenue. Ms. Romelus asked if they were asking for total disclosure and transparency from the businesses. Mr. Simon listed the information they need from the business. He commented this is a free service and any benefit received is great for them and measurable for the CRA. The information is needed to keep the program going. Mr. Casello learned businesses that do not want to provide the information would not be part of the program. The goal was to assist 15 total businesses out of 63 in the first three months. He noted the program will be discussed at the budget meeting. Tracking the market will give indicators what the person is doing for the business and CRA to justify the program. This is one option to assist businesses,. Mr. Casello asked why t"-- program was a pilot program. It was indicated from a labor market standpoint, it is a new position. Many employees have outdated skills and they have to recruit employees with new skills. They are specialized skills requiring a four- year degree. The program was trying to accommodate those needs. Vice Chair McCray asked where the two contractors would be housed and learned they would be in the CRA office conference room or available space when the auditor is not there. The contractors will be in the District and come back for meetings and reports. Mr. Simon thought it would further the CRA's mission similar to public relations. Chair Grant noted they are paid at an hourly rate. Mr. Simon explained they will have a weekly time sheets and mileage forms, check offs from businesses they visited and for how long. Linda Cross, 65 Casa Loma Boulevard, Unit 601, explained the discussion is an extension of the CRA Advisory Board contemplating the potential for a grant to create jobs and businesses to hire. They spoke to CareerSource and discussed what kind of employees a business would like to have. Business would like to have someone help them with social media. When the Board changed the position from one person for a year, to two people for six months, she noted it is hard to get someone to commit for six months and it is easier to hire them for a year. The information would be provided for a year, but there would be a lag in the beginning as opposed to receiving less information from a six-month period. Ms. Romelus asked if they would evaluate the program in six months and then consider an extension. Mr. Katz commented as far as gathering data to determine the success of the program, if it takes a month or two for an employee to develop a plan for these businesses, the CRA would only receive three or four months' worth of data. He did not mind more employees to get more done, but if they cannot cultivate the conclusions in a wt Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 shorter time period, spending the money may not be prudent. Chair Grant did not want to hedge all their bets on one candidate. Motion Vice Chair McCray moved for two candidates for six months. Ms. Romelus seconded the motion that unanimously passed. C. Consideration of Approval of Costa Center, LLC's Performance Audit for Year Ending December 31, 2016 for the Casa Costa Project This item was heard earlier in the meeting. XIV. CRA Advisory Board A. CRA Advisory Board Agenda — March 2, 2017 S. Minutes from CRAAB Meeting — Feb. 2, 2017 C. Pending Assignments 1. Discussion and Creation of Draft Community Benefits Agreement 2. Research and Recommendations Regarding DIFA Agreements and the Current Policy Regarding DIFA Agreements D. Reports on Pending Assignments 1. Research for a Potential CRA Grant for Job Creation Linda Cross explained the Advisory Board started the process to review grants for job creation and it evolved into an internship. CareerSource has some funding already to help pay for interns at jobs, and they would like to see how the pilot program goes and decide. At this point, they did not think, in this year's budget, they would review it. E. New Assignments from February 14, 2017 Meeting: None XV. Future Agenda Item A. Direction Regarding the Disposal of CRA Owned Properties Located at E. MLK, Jr. Blvd. and NE 9th Avenue to St. Paul AME Church of Boynton Beach (appraisals received 01/03/17) B. Status of District Clean Program C. Interim Director Position (tabled until June 2017 — 6 mos. From Dec. 13ch meeting) D. Discussion and Consideration on Formation of Residential Improvement Program 21 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 15, 2017 XVI. Adjournment Motion There being no further business to discuss, Vice Chair McCray moved to adjourn. Mr. Katz seconded the motion that unanimously passed. The meeting was adjourned at 9:27 p.m. Catherine Cherry Minutes Specialist 1►�: