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Minutes 04-11-17MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD ON TUESDAY, APRIL 11, 2017, AT 6:30 P.M., IN COMMISSION CHAMBERS CITY HALL, 100 E. BOYNTON BEACH BOULEVARD BOYNTON BEACH,L I PRESENT: Steven B. Grant, Chair Mike Simon, Interim Executive Director Justin Katz, Vice Chair Tara Duhy Board Counsel Joe Casello Mack McCray Christina Romelus I. Call to Order Chair Grant called the meeting to order at 6:32 p.m. II. Invocation, Mayor Grant gave an invocation and led the Pledge of Allegiance to the Flag. III. Roll Call IV. Agenda Approval A. Additions, Deletions, Corrections to the Agenda Mr. McCray requested to move New Business Item XIV. A. Consideration of the Letter of Intent from St. John Missionary Baptist Church for the Purchase of the CRA owned property location at 700 N. Seacrest Boulevard, also known as the Ocean Breeze East site, before Consent Agenda. Motion Mr. McCray moved to approve the above. Mr. Casello seconded the motion. Vote The motion unanimously passed. Mayor Grant added a vendor policy for events to the CRA Advisory Board Assignments. B. Adoption of Agenda Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 Motion Mr. Casello moved to approve the agenda with the amendments. Mr. McCray seconded the motion. Vote The motion unanimously passed.. V. Legal Chair Grant noted Legal provided an email regarding the proposed timeline which will be discussed with item 14.A. VI. Informational Items and Disclosures by Board Members and CRA Staff: A. Disclosure of Conflicts; Contacts, and Relationships for Items Presented to the GRA Board on Agenda Items Vice Chair Katz spoke to representatives from Aldi Markets with regard to a property in the City. Mr. McCray indicated to the CRA and CRA Advisory Board members that he appreciated the flowers sent for the passing of his mother. He disclosed he is a clerk and member of the St. John Missionary Baptist Church and he has no vested interest in the item coming before the Board tonight. Mayor Grant met with Roundstone and a few members of St. John Missionary Baptist Church. He announced he took his dog to Bark Avenue Hotel and Spa and attended the Career Expo. Ms. Romelus met with members of St. John Missionary Baptist Church and Roundstone Development. She also attended the quarterly Police Officers Awards ceremony. Mr. Casello spoke with representatives of Aldi markets and commented he was disappointed he was not invited to talk to Roundstone. B. Informational Announcements VII. Announcements & Awards A. 3rd Annual Boynton Beach Blarney Bash Recap Mercedes Copans, Special Events Coordinator, announced on Friday, March 17th, the CRA hosted the 3rd Annual Blarney Bash. It was a free, family -friendly event in Boynton 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 Beach along E. Ocean Avenue that attracted thousands to the area. Staff received very positive feedback. Surveys conducted showed many attendees live in Boynton Beach and learned about the event through print advertisement and event signs throughout the City. Hurricane Alley, Baileys Blendz and Dianetts Art Lounge participated in the event. All vendors reported positive feedback and they want to participate in future events. There were three local Boynton Beach Breweries on tap which was received well by attendees and staff thought it was an excellent addition to the event. B. Movies in the Park The next Movies in the Park will take place on May 5t" at the Ocean Avenue Amphitheater and will feature Hidden Figures, a true story of three African-American women who were human computers during the early space flights with NASA. The movie is rated PG and appropriate for all ages, although it may not hold the attention of young children. The movie starts at 8 p.m. and there will be free popcorn. Food and beverages will be available for purchase and attendees will be entered into a drawing to win gift certificates for CRA merchants featured in the trailer shown just prior to movie. Mr. McCray urged all to see the movie. C. Music in the Park The next Music on the Rocks event will take place on Friday, April 21 st at 7 p.m., also at the Amphitheater, featuring Runaway Mile, a country band incorporating rock and pop. Food and drinks are available for purchase from select trucks from the Food Truck Invasion who will be on site starting at 6 p.m. Ms. Copans agreed to provide Chair Grant with an estimate on the number of event goers for the March events and a spreadsheet with all the survey responses. D. Career Expo at Carolyn Sims Center Thursday, March 23, 2017 Recap Michael Corbett, CareerSource Director advised they held a successful Career Expo on March 23� at the Carolyn Sims Center. There were 26 companies present having over 100 open and available jobs and 141 job candidates. Mr. Corbett announced the event was well run and he thanked CRA staff Bonnie Nicklien and Theresa Utterback for organizing the event. CareerSource is looking to hold another event in the fall at Intracoastal Park. The job expos are good to attract local job seekers to available jobs. Commissioner Romelus asked how many people will be placed. Mr. Corbett explained every attendee is given a code when they register. He thought about 70 people were offered jobs, but it takes about three months to receive the final tally. Some of vendors a were Home Depot, Publix, Lowes, a few McDonalds and others. Mayor Grant thought it was a great event. There were jobs available from First Transit, cooks for the Palm Beach County schools and more. Mr. Simon thanked Ms. Nicklien and Ms. Utterback for their hard work. He introduced Matthew Meinzer, the CRA new Social Media Business Consultant as discussed last month, to work on a six-month outreach program. Today was Mr. Meinzer's first day and he 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 has good team building skills how they can assist businesses in the area through social media, statistical outcomes and benchmarks. Mr. Meinzer advised he attended FullSail University in Orlando. His first social media job was for Event Grabber in downtown districts working with their business and partnering through social media to attract more people to experience the downtown venue. He worked with multiple sports team, handling social media, grass roots marketing and on-site promotions. His job entails visiting businesses and work via telephone. Item XiV. A Consideration of the Letter of Intent from St. John Missionary Baptist Church for the Purchase of the CRA Owned Property Location at 700 N. Seacrest Boulevard, also known as the Ocean Breeze East Side (Heard out of Order) Mr. McCray advised this was the first time he was seeing the presentation. Reverend Javon Davis, Pastor of St. John Missionary Baptist Church (SJMPC), introduced the team who worked to take the vision they have to seek ways to continue to make a lasting impact in the community. Knowing of the failed attempts for decent affordable housing on the Ocean Breeze East site, he commented ways to make lasting impacts in the community were before them. Deacon Guam Sims, SJMBC, Mark Karageorge, and Michael Hartman, Roundstone Acquisition Manager were present. Mr. Sims explained St. John Missionary Baptist Church has been rooted in the community for 109 years, having over 1,000 active members, a successful social service component called Pathways to Prosperity, and is well respected in the community, region and State. They are also property owners in the Heart of Boynton (HOB) with an unwavering commitment to uplift the community which is the driving effort for the development. They decided to reach out and partner with Roundstone, led by Clifton Phillips, and Michael Hartman. They have over 11 years of experience developing affordable housing communities. They developed over 2,000 units, have longstanding relationships with other management companies and have a commitment to use local and minority businesses. Their recent experience is in Delray Beach with the Village Square project formerly known as Carver Estates. Mr. Sims advised he has served on the Delray Beach Housing Authority for six years. They stepped up as the Church is doing and partnered with Roundstone for state-of-the-art, high -standard affordable housing projects. They completed a 144 multi -family development, are about two months away from another 84 units for the elderly and Phase III, which is affordable single-family homes. Roundstone proposed a three-story building with 62 one -bedroom units, 46 two-bedroom apartments, a retail component consistent with the HOB plan with 5,000 square feet of retail for a grocer and 47 parking units. Common amenities they feel are essential to the vision is to embed a family life center in the project to provide a catering kitchen and business and fitness centers. This is not just for St. John parishioners, it is for the community and residents of Boynton Beach. Standard amenities included energy star appliances to promote energy efficient units. They have a local participation plan and when 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 they started vetting the idea, they had to enlist the support of major community stakeholders. When they approached the community about their idea, the comment they heard the most was "It was time to get the project done." Their community outreach plan obtained the support of INCA, the HOB residents, the Coalition of Clergy, Boynton Intracoastal Group (BIG) and the Chamber of Commerce. All support the project which they can get done without the lottery system, which was the main reason why prior projects had failed. They were looking into advertising, utilizing the City and CRA websites and external and internal resources at the Church to advertise the project. The Church is committing to hold community meetings, to host a minimum of three job fairs pulling potential skilled laborers, subcontractors and whomever it may be, to have employment during and after construction with the major focus on living in District Il. Mr. Sims advised this project was similar to how the project in Delray Beach was structured with the Housing Authority and Roundstone, with a significant percentage of residents from Delray Beach working as subcontractors and skilled laborers on the Delray Beach project. They learned how important this component is. They will work with CareerSource, the School District and Adult Education Department and South Tech Academy to build an infrastructure of job training programs to get residents ready to compete for jobs during development and beyond. The Church would step up to provide those job training opportunities in the HOB and other locations. A conceptual site plan was viewed showing the front elevation was consistent with the HOB plan. They invited all to visit the Village Square project in Delray as it is impressive. Mr. Sims explained a prior low-income housing project became an eyesore after a hurricane and the residents had to evacuate. The City and CRA partnered with the Delray Beach Housing authority for the land, with assurances the development would proceed. The team believes the same can happen with this project. Roundstone's Pinellas project was viewed. Mr. Sims explained it is one thing to have a ribbon -cutting ceremony for a development and two years later, no one wants to live there because it has a bad reputation. It is important to build affordable housing and maintain it to a high standard. Ms. Sims explained the development will not have a bad reputation after opening because of the Church's reputation. The Church will be involved from start to finish. The standard will be the same, years later, as in the first year and it is a partnership. They spoke with the CRA Advisory Board and they want City Commission and stakeholder buy in. It is not a Church project or a Roundstone project; it is everyone joining together to finally develop various properties in the HOB without the lottery. Mark Karageorge explained he has 17 years of experience in development and property management and knows quality. He was humbled to be part of the Roundstone team and praised the leadership and vision of Pastor Davis who was building on the legacy of past Pastors Lee and Chaney. He noted he and Deacon Sims both have experience serving on the CRA Board and former Mayor and CRA Chair Woodrow Hay and Deacon Gibson, from the Life Center, are part of the team. Mr. Karageorge explained this project addresses all three components of Statute 163 and conforms to the HOB and CRA Master Plans and the City's Comprehensive Plan. He noted there have been several failed attempts to develop Ocean Breeze East. When Ocean Breeze West was rolled out, the development faced 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 opposition from the community, but when it was finished, they loved it. He applauded Deacon Sims who suggested adding deed restrictions. The Family Dollar store was another success story. The proposed plan included a Community Benefits Agreement (CBA), holding job workshops and job training, with a preference on minority hires from District II. Mr. Hartman explained Roundstone has been around 12 years and he has been involved with Affordable Housing since 1988. He understood the difficulty with the lottery system which often results with a project that does not get funded. He recalled a high rise affordable housing building in Ft. Lauderdale they started working on in 2007. It took 9.5 years to make it a reality and they had a perfect score every time. Mr. Hartman explained if they get a commitment from CRA for set funds for a set time, they can borrow on that and turn the funds into the lump sum needed to build the development. It seemed more doable and it would involve less CRA funding for a longer period of time. Option one is expected to pay $110,000 a year in real estate tax of which 90% will go to the CRA. The City has $7 million a year of funds that go to various projects. Mr. Hartman proposed if the Board wants to build a project, they could take $100,000 Roundstone will provide, plus $350,000 of CRA funds, because at $450,000 for 20 years, HUD will lend Roundstone $6.5 million against the payment which will provide the source of funding for the development. Roundstone and the Church would form a limited partnership to own the building and the land. If the CRA committed the funds for the project, Roundstone would start a loan application with HUD, a construction application from Palm Beach County Finance Housing Authority and secure an equity buyer for the non-competitive tax credits and get permits. Roundstone would put up $1.3 million to be used mainly for architects, engineers up to $500,000, building permits for about $118,000 and HUD and the PBC Housing Finance Authority deposits and fees which are almost $600,000. Roundstone has to submit those fees while they are processing the loan. Tax credit fees are $82,700. Mr. Hartman pointed out tax credits, in this case, are not competitive. Roundstone would receive tax exempt bonds from the Palm Beach County Housing Finance Authority as a construction loan. The non-competitive tax credits automatically come along with the bonds and they have to file a 20 -page application with the State and the State allocates the credits as there is no competition for them. There are only so many options and this was an idea as a way to get the development done now. If the CRA would commit to the $450,000 for 20 years, Roundstone would start the process tomorrow. Roundstone made an initial application to a HUD lender and they blessed the numbers provided. The lender did not take the application to HUD, but their underwriting department underwrites for HUD and they endorsed the application. They would approach the Palm Beach County Housing Finance Authority, run by David Brand, who advised there is plenty of bond capacity available. The general partner puts up the funds to make the project a reality. Once construction starts, an investor will come in and buy the tax benefits and put up about $7.2 million of their money. The City and CRA can only get tax benefits if they remain an owner for 15 years. If there were a problem and something happened to the church and they could not follow through as a general partner, the limited partner has to step up for 15 years Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 to get their money back. He gave scenarios of what could occur and advised the tax credits go with the property. Mr. Hartman explained the financing will include a HUD 221(d)(4) loan of about $13 million. The first component is a 20 -year loan based on the revenue generated by the property and the other is the $450,000 from the CRA each year. They will give 20 years at 4.17% interest. The limited partner will put up about $7.2 million and they have to stay in the project for 15 years. The CRA will have $1 million in the project and Roundstone and the Church will have about $350,000 in the development after the $7.2 million which is typical. The general partner puts up an operating guarantee, but usually no cash. The partnership will have a six-month operating deficit reserve and a six-month debt service reserve. If there should be a shortfall, the funds are in an escrow to pay for any shortfall in expenses or debt service. Mr. Hartman commented the City and the CRA inquired how to build the project without the lottery and Roundstone advised this was a way to build the project. He anticipated if the CRA approved option 1, they would break ground right after the New Year in 2018 and start occupancy in early 2019. He thought the project would fill up in 30 days. The 84 senior units in the Delray Beach project have 384 people on the wait list. Linda Cross, 625 Lasa Loma Boulevard, Unit 601, explained the CRA Advisory Board heard a similar presentation. The plan fits perfectly in the community, the CRA Master Plan and it will be a green community. St. John Missionary Baptist Church stepped up as a partner in the development and it provides the community commitment that should satisfy the CRA Board. The Church will be the partner to ensure there is a CBA. Option 1 is to give the land, $1 million and $450,000 for 20 years. The Advisory Board feels the Church will ensure the CBA is satisfied and provide jobs with a livable wage for the community and residents of District II. It will revitalize District II and the Town Square. The Advisory Board supports the project and the use of option 1. The CRA would contribute the land, the project funds of $1 million and the $450,000 annually for 20 years. Netting property taxes, the improved property will pay at least $100,000 which may grow over time. The Advisory Board feels the project does exactly what a CRA is supposed to do. David Merker, 8 Southport Lane, supports the project. He lives in District I, and pointed out the development of the City is a complete workforce and all the Districts should help one another. He feels strongly that what was presented was for the good of all the residents and not just some of the residents. He hoped all the Districts, Commissioners and CRA Board who represent the different Districts would endorse the project. Dr. Piotr Blass, 113 W. Tara Lakes, wished all a happy holiday and commented the project is a terrific project. He suggested the grocery store be named after Gertrude Sullivan whose dream it was to have a store. He suggested naming the community center after Reverend Chaney. He promotes the University of Boynton, and he mentioned everyone in the City will have a full scholarship to the University. The project will be a model private/public partnership, and soon he will tell all about the project to develop the High School. He announced he is a candidate for Mayor and would support the project. 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach; Florida April 11, 2017 Mary Nagle, President, Boynton Intracoastal Group, was contacted about the project. She attended to watch and learn more about the project. She saluted the approach and commented it sounds like a great project, but was confused if the project was workforce housing or for seniors. She commented she supports the project. Rev. Bernard Wright, announced he was pleased he was approached for his support regarding the project as he is a community advocate He liked the project, would like to see it shovel ready and wants to see development in the Heart of Boynton Beach. He thanked Deacon Guam Sims and St. John Missionary Baptist Church for a spirit of a better Boynton. Rae Whitely, 223 NE 12th Avenue, representing the Boynton Beach Coalition of Clergy, explained the project has the potential to build or add on to the HOB, but also to create a template of how projects are supposed to be done. He thought with a partnership with developers, the City and CRA, there was no limit to what they could do. The Coalition of Clergy supported the project. No one else coming forward, public comments was closed. Mr. Casello expiained he has not had a lot of time to study the project and asked if the HUD and tax exempt bond fees of $600,000 were refundable. Mr. Hackman responded if the project is funded, those fees will be returned. The equity partner pays the fees as a development cost for the project. He commented it is a big risk. They once had a deal that fell apart three weeks from closing and they lost $750,000. He advised they are looking at an eight-month process to put the cash up. If at any point the lenders change their mind, or the tax plan changes and they do not want to invest, they will be out of pocket $1.3 million. He commended the Church for its involvement in the project. Mr. Casello asked if the HUD 221 (d)(4) program was new and learned the program has been around for 30 years. Since the interest rate is cheaper on HUD funds, they borrow money short term on exempt bonds as a construction loan, which allows them to get the tax credit equity on a non-competitive basis and pay back the bonds to the Palm Beach County Housing Financing Authority with the 221 (d)(4) monies. If the Board uses this option, they will be blazing new ground. Mr. Hackman spoke to his lender after speaking with Mr. Simon about the project, and was informed the lender has never seen a City fill the gap this way. The Delray Beach CRA stepped up because there was a funding gap, and Roundstone funded the project as a non-competitive project, but they only needed $2.7 million because tax credits were 25% higher than they are now. The equity decreased and the gap was larger on this deal. Mr. Casello asked about the $100,000 and what portion goes back to the City. Mr. Simon responded based on their calculations, staff projected $202,000 in Tax Increment Financing, which is 100%, to the CRA. Mr. Casello asked how, as a Director, Mr. Simon felt about the $800,000 appraisal of the land, the $1 million in cash and $450,000 for 20 years. The CRA's investment is about $11 million and he asked what kind of interest the n. Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 CRA would pay. Mr. Simon advised the HUD loan has an interest rate of 4.17%, or about $3 million over 20 years, which the CRA would pay. Mr. Casello asked how the project would affect other projects such as the Town Square. Mr. Simon explained with the $450,000 a year including the TIF that would be created, the funds would have to come from the overall project fund line item which has $6 million this year. The CRA would have to reallocate the funds, given there is no decrease in property values or TIF revenue. The CRA has the funds, but it may result in a future project not being funded because the CRA would have $250,000 a year dedicated to this project. Mr. Simon contemplated accelerating the payments, which would take a higher amount each year to pay, to avoid the interest on the $3 million. Mr. Simon favored finding a way to avoid paying the $3 million in interest as a partner. Mr. Casello wanted to slow the process in order to review the numbers, implications and after further Board discussion, he asked for Mr. Simon's personal opinion if it is a good deal with the CRA. Mr. McCray did not want the Board to get hung up on if the CRA could afford other projects. I'he developer was only asking for $250,000 for an affordable housing project in District II which everyone will benefit from and the Board has always wanted. He commented this was the Board's chance. He noted the Board has from April 11th to June 13th to study the project and he urged the Board to look at the bigger picture, which was for many years, the property was vacant. Mr. Casello appreciated his statement, but questioned the timeline and how it was presented to him. Mayor Grant explained they have until June 13th to review the project and give final approval. He asked if there were ADA accessible rooms and learned every unit will be ADA accessible and two elevators were included in the project. The land is zoned for Mixed Use (MU) medium which could allow for extra height, but it would cost more money. Mr. Hartman commented a fourth floor would raise the cost another 20% per unit and while there would be a return on investment, with the 4% credits, there is a lot less equity. Mr. Hackman advised they were contemplating building a Class -A development, keeping the cost as low as possible, meeting the retail requirements and providing something that will look good for the next 20 years. Mayor Grant thought option 1 was only available in this market until the next Federal Reserve Rate adjustment. Mr. Hackman agreed every time the 10 -year Treasury Bill and prime rate increased, there will be an increase on the HUD 221 (d)(4) loan. Mayor Grant asked if Mr. Hackman foresaw the rate increasing this year. Mr. Hackman advised they can lock in the rate even while going through the underwriting process. Today, the rate is 4.17%. The construction loan is 1.5% on tax exempt bonds. Mayor Grant favored the project and the job training and was glad to see community involvement. Mr. Hackman credited St. John Missionary Baptist Church for the project concept. He explained they cannot vote on the proposal until June 13th, and the Board has a deadline of May 12th end of business, if there is anyone else wanting to submit a proposal. 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 Attorney Duhy explained by law, the CRA must advertise their intent to enter into a contract to dispose of property for 30 days in the newspaper and during that time, anyone can submit a proposal. The CRA will weigh all proposals. Mr. Hackman explained theoretically, Mayor Grant and Mr. Simon came up with the solution. Ms. Romelus asked if St. John parishioners would be serviced first. Mr. Karageorge responded they would not, as they must follow HUD and Fair Housing guidelines which specified the units are available to anyone that qualifies. He commented this is for low and very low-income people. Ten percent of the units will be at 33% of the area medium income and 90% will be at 66% of the area median income. They do not want to gentrify the neighborhood. It is not a market -rate project and they want to be inclusive for all people that qualify under the guidelines. Ms. Romelus asked if the project was a senior, workforce or affordable housing project. Mr. Hackman explained the scores and all the applications are out and currently, the NuRock development is not in the funding line. They will learn more on April 25th at 2 p.m. when the scoring board meets and makes their recommendation. If the NuRock project does not win, Roundstone can build age 55 and over senior housing. If NuRock wins and has senior housing, Roundstone's project has to be family, but since the units are only one and two bedrooms, it would serve single, or young single people or seniors. Mr. Hackman explained Roundstone has been in business since 2004. They started developing in Texas and the units are still in like -new condition. Mr. Hackman agreed to send pictures and he referred the Board to RoundstoneDevelopment.com. All of the projects are affordable housing and he advised they worked in Arkansas, Texas, Mississippi and Florida in Delray Beach at the Old Carver site and in Pinellas County. They have an application in Dania Beach and this one. Roundstone is a for-profit group. The company signs 50 -year guarantees and the owner signs personal guarantees. Mr. Hackman explained the tax credits to Ms. Romelus. She asked what the CRA contribution for the Delray project was and learned it was similar to what they were proposing. The land was provided by the Housing Authority and they created an underarm of the Housing Authority called the Delray Housing Group. Their assurance was to complete the project, manage the facility and have third -party management consisting of a manager from out of town. Mr. Hackman pointed out the third -party management is from out of town, but the staff is from Delray Beach. The management company gives a report to the Board each month. He commented the housing group and Authority are vital to making the project work and maintaining the property to ensure it is leased up. They had planned to construct 25 single-family homes next year, but with the affordable housing crisis, they may build affordable three-story condos instead. Vice Chair Katz noted he and another Commissioner from the west side of 1-95 had not been approached and briefed on the project which concerned him He understood the Church or individuals from the community will form an LLC to partner for the project and learned every development like this has a limited partnership that holds title to the property 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 and the land. In a limited partnership, the investor/limited partner has very limited rights they can exercise unless something happens, such as a default by the general partner, which would be Roundstone and the Church. The lender wants the asset to be isolated and they can go against that entity as a single asset. The building and the land secures the HUD mortgage. Mr. Hackman explained they do not have to create the LLC yet. The general partner would be owned 70% by Roundstone, 30% by the Church, and the initial limited partner would be Clifton Phillips, their owner. They would negotiate a partnership agreement with the investor/limited partner. Vice Chair Katz asked if it is standard to initiate business dealings prior to creating an LLC and learned it was. Vice Chair Katz requested confirmation the $450,000 would secure the loan for the property and learned it would secure half of the loan. The other half of the loan would come from rents. Mr. Hackman advised they provided pro -formas to the CRA and to the HUD lender whose internal underwriter already blessed the calculations. Vice Chair Katz asked where the $450,000 would go on an annual basis and learned it would go to the partnership and they would make the monthly payments on the loan. The CRA could pay Roundstone on a monthly basis. Mr. Simon asked if the CRA is a guarantor on the $6 million loan and learned they were not. The loan is secured by the land and the building and the loan has to be a non-recourse loan. Mr. Simon requested confirmation the CRA was only guaranteeing payment through their obligation as part of the TIF or other agreement and commented bond counsel or the City and County would have to approve the CRA as a guarantor on a loan, or the CRA take the loan themselves. Ultimately, the City would have the final say because the debt is secured by the City. The CRA is not involved in the application part at all. Vice Chair Katz asked if there are plans to upgrade surrounding infrastructure in the project. Mr. Hackman explained the plan is preliminary. Roundstone was looking to beautify the perimeter of the property which includes five -feet wide sidewalks and landscaping. Vice Chair Katz commented the financials concerned him, but was fine with the project. Mr. Hackman advised he would get him the pro -forma the next day. Ms. Romelus asked about the difference in TIF estimates. Susan Harris, Finance Director, explained she based the TIF calculation on an analysis of a $17 million property value that would go on the tax rolls. The Property Appraiser would have to publish the value each year and the rate could fluctuate to some degree. Mr. McCray noted Mr. Casello and Vice Chair Katz had indicated residents west of 95 did not hear about the project. He advised he represents District II and he lives east of 1-95. He chose not to meet with the Church or the developer. Mr. Casello commented the Housing Authority formed the Delray Housing Group. The CRA gave the land away and asked what monetary equity they put into the project. Mr. Sims explained it was minimal because they recognized they were and still are a worthy non-profit entity invested in the community to get the project done. Mr. Hackman explained the program was around since1986 and he has constructed over 100 developments since 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 1993. The general partner, once the limited partner comes with their equity contribution, has more than $100 invested in the deal. The general partner puts up the risk monies to take the project from concept through to construction loan closing. In this instance, the general partner was risking $1.3 million. When the limited partner makes their investment, the money is reimbursed to the general partner. The general partner has to provide operating deficit guarantees, tax credit delivery guarantees and if not, the limited partner, who has the equity in the project would assume the role of general partner if they did not do their job. There was a similar successful project in Tallassee in Frenchtown, where a non-profit church stepped up as a community stake holder. Mr. Guarn agreed to provide Mr. Casello the information the next day. Mr. Casello liked the concept, but it was a lot of new learning and he was not completely comfortable with it. He asked if Mr. Simon was comfortable with the project. Mr. Simon agreed the project was fabulous and they were using out-of-the-box thinking to finance a development that otherwise relies on tax credits. He had been asking to find a lender that can act as the CRA or if the CRA would act as a lender. If there is not another equity partner, then they will find one. Mr. Simon explained the project was feasible on many levels. He had questions about the $1 million, the profitability and making sure they can get the tax paid on the property or even the ability to generate the TIF. He commented the concept as it was laid out, was a great opportunity for the CRA if they are were willing to consider becoming a financial partner.. Motion Mr. Casello wanted an extra 30 days to review. Chair Grant asked if Mr. Casello made a motion to table. Vice Chair Katz seconded. In a voice vote, the motion failed 5-0. Chair Grant requested Roundstone return for the May 9th meeting. Mr. Hackman commented anyone with questions, should contact him. Motion Mr. McCray made a motion to move forward on the Letter of Intent and Roundstone return for the May 9th meeting to answer questions and all the requested information be provided. Ms. Romelus asked Attorney Duhy if she could provide the Board with a list of other projects that have done this type of project with CRAs. Attorney Duhy explained if the Board was asking staff to start to publish the Notice of Intent to Dispose of Real Property, the motion should be for Roundstone to provide additional information. She did not think it was appropriate, based on the presentation of the motion, to indicate they are accepting the letter of intent, only to publish the Intent to Dispose of Real Property. 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 Motion Mr. McCray moved to amend as stated by Attorney Duhy. Ms. Romelus seconded the motion. The motion passed 4-1, (Vice Chair Katz dissenting.) Vice Chair Katz thought asking for 30 days to understand the potential allocation was a modest courtesy. He intends to support the project, but two Commissioners were not approached about it and he felt the issue was calculated prior to the meeting. He did not want to vote against the project, but he could not vote for it with the promise he would get the documentation the next day. The manner in which the item came forward did not sit well with him. The project requires a serious commitment as they now have a 60 -day deadline to make a decision. He hoped in the future, more respect would be paid to all members of the Board prior to these types of decisions. Ms. Romelus commented she asked Roundstone and St. John Missionary Baptist Church if they approached all Commissioners when she met with them and was told they were. She hoped the faux pau would not be repeated in any project going forward. Mr. Simon explained posting the notice is not an obligation to approve or enter into a contract and it is not an acceptance or approval of the project. The action just starts a clock that has to be started at some point. All other formal approvals come later. They have to publish the notice and approval by the City Commission is needed. Then the actual contract would have to be approved. Motion Commissioner McCray moved to approve a five-minute recess. Vice Chair Katz seconded the motion that unanimously passed. Chair Grant recessed the meeting for a short break at 8:19 p.m. and reconvened the meeting at 8:26 p.m. VIII. Consent Agenda A. Approval of Period Ended March 31, 2017, Financial Report B. Monthly Purchase Orders C. Approval of CRA Board Meeting Minutes — March 15, 2017 D. Approval of Grandma's Manufacture, LLC d/b/a Grandma's Treasures for Commercial Fagade Improvement Grant Program E. Approval of Grandma's Manufacture, LLC d/b/a Grandma's Treasures for Construction Permit Incentive Grant Program 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 F. Approval of R & C Hotels Corporation for Commercial Fagade Improvement Grant Program for Stay Inn Motels G. Approval of Home with Help of Florida, Inc. for Commercial Rent Reimbursement Grant Program H. Approval of Bark Avenue Hotel and Spa, LLP for Commercial Rent Reimbursement Grant Program I. Approval of Paul Smith for Commercial Fagade Improvement Grant Program J. Approval of Posh Realty, LLC for Commercial Fagade Improvement Grant Program K. Approval of Posh Realty, LLC for Commercial Interior Build -Out Improvement Grant Program L. Approval of Posh Realty, LLC for Commercial Rent Reimbursement Grant Program M. Approval of Seoul Sister Yoga, Inc. d/b/a YogaFit for Commercial Fagade Improvement Grant Program N. Approval of Seoul Sister Yoga, Inc. d/b/a YogaFit for Commercial Interior Build - Out Improvement Grant Program O. Approval of Seoul Sister Yoga, Inc. d/b/a YogaFit for Construction Permit Incentive Grant Program P. Approval of Seoul Sister Yoga, Inc. d/b/a YogaFit for Commercial Rent Reimbursement Grant Program Q. Approval of Baciami, Inc. for Commercial Fagade Improvement Grant Program R. Approval of Baciami, Inc. for Construction Permit Incentive Grant Program Motion Mr. McCray moved to approve the Consent Agenda. Vice Chair Katz seconded the motion that unanimously passed. (Mr. Casello left the dais at 8:26 p.m.) 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 Chair Grant asked if any of the attendees were business owners that were approved for grants on the Consent Agenda wanted to introduce their business. Nadine Hasaidl from Germany explained she is a passionate German baker and her establishment will be a bakery, combined with a restaurant featuring all organic foods. She imports all her flours from an organic mill from Germany to make authentic breads. She was excited and announced they will have a real Oktoberfest. Her eatery, called Grandmas Treasures, is located on Federal Highway in the Ocean Palm Plaza. (Mr. Casello returned to dais 8.28 p.m.) Sharon Walter, Posh Properties, explained they have been in business for five and a half years in Delray. They do well there and love the small boutiques. She advised the were locating to the southeast corner of Federal Highway and Ocean Avenue on May 1s. She sold her home in Delray and moved to Boynton Isles. She loves the neighborhood and City and was appreciative of the grant. Charles Anzelon, Casa Costa resident and owner of YogaFit in Las Ventanas, thanked the Board for their consideration of the grant to create and grow the businesses. YogaFit is a franchise business. He has two more licenses he will use and build two more studios in the county. Eileen Fleming, Bark Avenue Hotel and Spa, explained she just moved to Florida in January and she met her business partner who had an existing grooming salon. Ms. Fleming also had a doggy hotel and daycare for 13 years she sold in December when she moved to Florida. The facility is a cage and crate free facility. They sleep with the dogs so they will never be left alone. She thanked all for the support. IX. Pulled Consent Agenda Items X. Information Only A. Public Comment Log B. Marketing and Business Development Campaign XI. Public Comments: (Note: Comments are limited to three minutes in duration) XII. Public Hearing A. None XIII. Old Business A. Neighborhood Policing Program 1St and 2nd Quarter Reports 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 Officer Paramore explained some of his activities with the program and advised when he first went to Poinciana Elementary School, he went to the cafeteria and he received a cool reception from the students, but now they love him. He mentors a student and planned to mentor more. He is involved with "Sweat with a Cop" at the Carolyn Sims Center and advised it is an awesome program. The youth play games or kick ball from 3 p.m. to about 5 p.m. He took picture of the youth when the program started and they also now view him as a normal human and not just an officer. He hoped there was funding for some of the programs or for services the youth need. When interacting with the public, lots of people want to start up a program and they are directed to the CRA. He is currently working with the Cub Scouts. He hoped more youth would get involved and hoped the Cub Scouts would expand to Boy Scouts. He also noted more people were needed to run the program beyond him. Ms. Romelus praised Officer Paramore and Sgt. Diehl and pointed out the meeting backup gives their daily schedule. She asked Mr. Simon to allow the new CRA Social Media Specialist to help promote the Neighborhood Policing program. It is a great visual about being proactive in the community. Mr. Simon agreed. B. Consideration of Purchase and Development Agreement for the CRA Owned Property Located at 222 N. Federal Highway, a/k/a the Ocean One Project (Tabled 3/15/17) This item remained on the table. C. Discussion and Consideration of Letters of Intent to Purchase the CRA Owned Property Located at 711 N. Federal Highway Mr. Simon explained at the March 15th meeting, two presenters, South Florida Marine and Coastal Customs, were asked to provide a sealed bid as described by CRA Legal Counsel by March 31St. Mr. Simon outlined the significant points of the proposals on the agenda cover. South Florida Marine submitted a proposal to purchase the property for $365,000, use an 80% loan and a 20% down payment for the acquisition. Renovation costs to expand to accommodate additional boat sales and marine engine sales was $290,000 and they requested economic development program grants of $67,470 and additional grant funding of $96,000. The proposer would contribute $126,530 in addition to the CRA matching funds and estimated 12 new jobs would be created. The CRA's balance of investment minus the original acquisition price plus renovation grants is $423,470. The Coastal Custom International Tackle proposal submitted on March 31St, was to purchase the property for $379,000. They proposed an all cash purchase with renovation costs at $250,000 and they were requesting economic development grants of $71,555. Coastal Custom will contribute $105,000 of the $250,000 renovation costs themselves and they estimate four new full-time jobs will be created and six part-time positions. The total investment with acquisition and renovation costs is $529,000 and CRA investment minus acquisition costs with the CRA's grant assistance is $317,550. II: Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 Mike and Jana Woods submitted their hand delivered proposal first. Coastal Custom emailed their proposal. Mike Reimer, Coastal Customs, indicated their proposal specifies they will create 10 jobs. He noted two jobs were filled, four were conditional job offers and the balance would be new hires. They spoke to James Kidd, President and CEO of South Tech Academy to fill the positions and had a candidate from Lynn University who was also interested in working with them. He spoke with Great Learning Works, a web based, e -learning provider to develop a skills -based training program in CAD and CAM. They live in Marina Village, and the business is a short walk away. They are concerned how their business would look as they live there. There would be no boat storage on site. They would do computer aided drafting and have retail space. The part-time position in the proposal is to carry a six-day a week schedule. When Coastal Customs received a call, they send someone to the boat. They use a machine to digitize the boat, and they bring the files to the Federal Highway location, work on the boat with computer work stations for the desired custom installation and they install it at the High Ridge location. There would be no boat storage. Mr. McCray asked how long they have been at the location and learned it was four years and they own the building on High Ridge. Jana and Michael Woods, South Florida Marine, invested in Downtown Boynton Beach over eight years ago, have been in business for 17 years and lived in the City for over 20 years. They are a family-owned business. South Florida Marine sells MasterCraft and pontoon boats and with the expansion, they will open a fishing line of boats and a ship to shore store. Vice Chair Katz asked if they would be forced to look at another site if they do not acquire the site and learned at some point they would. They are at maximum capacity. Ms. Woods explained they had inquired about the Amerigas property for a number of years to no avail and if they could not obtain the land from Amerigas they had discussed moving to an area they could place some of the boats and transport them back and forth or acquire the building that was there. Mayor Grant noted the property north of them was for sale and learned they inquired about it, but space was limited and it would only permit one or two boats if they remove the building. The vacant property is owned by two separate people. Mr. Casello visited the site, but commented his issue with both proposals with the purchase price was very low. He did not favor either company. Mayor Grant pointed out when South Florida Marine purchased the property in 2008, the property tax was $628. When they improved the property, the property taxes increased in 2009 to $20,000. They have already paid over $100,000 in taxes in the CRA District. He supported South Florida Marine and wanted to work with Coastal Custom, as it did not require boat space, to find another property. Vice Chair Katz noted there is a $106,000 gap between the two proposals. If the gap was narrowed he would be willing to support the local property owner in the area. He 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 commented CRAs remove blight and slum, but the Board was giving a lot of money to a business with a lot of money relative to the greater CRA population. He agreed with Mr. Casello the offer prices and investment by the CRA was exorbitant. He commented if South Florida Marine increases its purchase price or lowers the grant $50,000, it would narrow the gap. He commented acquiring properties of this nature was an issue for him. Ms. Woods agreed to the suggestion. Ms. Romelus wanted to see their business plan to ensure the business can survive the expansion. Mr. Woods had no objection to providing information, but did not favor their financials becoming a public record. They can support the expansion and a bank had already reviewed and approved of their financial worthiness. Additionally, they sell Yamaha Outboards. Yamaha owns 60% to 70% of the market in Florida and the ship to shore store will bring more traffic from the boat ramp. Attorney Duhy explained the only thing confidential in response to a bid is a trade secret. She and Mr. Simon can ask questions that will provide Ms. Romelus with the information she was requesting. Attorney Duhy explained public records law provides for very few exemptions. Ms. Romelus understood boats are a luxury and asked how the financial downturn affected this business. Mr. Woods responded there were no layoffs during that time and they kept the employees going. They bought the property on Federal Highway during the downturn and improved it. Mr. McCray thought staying next to Amerigas for as long as they did warranted merit and he supported their request. Mr. Casello reminded the Board, they had invited the proposers to submit sealed bids. The discussion was turning into a bidding war and it was not fair to the applicants as they submitted their best and final offer. Attorney Duhy explained Mr. Simon suggested the sealed bids at the last meeting. Legally, because it was a Letter of Intent and outside of an official RFP process, the Board can accept one letter of intent and reject the other based on various criteria. They can add or request changes to the Letter of intent, or reject both of them. The Board can request a change to terms depending on their considerations. Mr. Reimer explained they also spoke with Amerigas and they were apprehensive about selling. Then they were made aware the City had purchased the property, would sell it and there was grant funding. Mr. Reimer explained they do not need the grant funding. They have done well over the last few years. Mayor Grant explained they want to assist both businesses, but there is one property. Mr. Casello asked Mr. Reimer if he was willing to give up the CRA assistance of $71,500 and learned he was. Woodrow Hay, 427 NW 5th Avenue, explained he was around when MasterCraft moved to the location. The building was in bad shape and the City was not receiving tax revenue. MasterCraft improved the property and the amount of taxes paid over the last seven or im Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 eight years made up for a lot of TIF funds. Boynton Beach is considered a fishing town and boats are somewhat of a luxury. MasterCraft has already proven itself in its current location. They cannot expand north and the subject property was ideal for the expansion. The surrounding property owners support the expansion. The businesses work well together and he thought it made sense to assist the existing business to expand and work with the other. Dr. Blass agreed with Mr. Hay's comments. . No one else coming forward, Public Comments was closed. Mayor Grant announced the offers were Coastal Custom not taking any CRA assistance of $71,550, and the total CRA investment would go down and South Florida Marine was requesting only an additional $40,000 in CRA funds. Out of pocket for South Florida Marine would be $373,000 and $246,000 for Coastal Custom. Motion Ms. Romelus moved to accept the Letter of Intent from South Florida Marine, with a list of the 12 jobs they will create and have those questions that ascertain they are financially sound to expand the business after securing the loan. Attorney Duhy clarified they could use parts of requests from proposals the CRA has used before and it will be made part of the process. Vice Chair Katz also requested including a first right of refusal if either business obtains the property and attempts to sell. Ms. Romelus amended her motion to include the provisions. Mayor Grant asked if the Board could craft a Purchase and Development agreement with a reverter clause. Attorney Duhy explained the Board was accepting the Letter of Intent to reduce the additional CRA funding from $96,000 to $40,000 and, based on the letter of intent and basic terms, to negotiate a Purchase and Sale Agreement which will include a right of first refusal and any other additional provisions the Board may want, or add them to the contract when the Board reviews it. Mr. McCray seconded the motion that passed 4-1 (Vice Chair Katz dissenting.) Vice Chair Katz commented the transaction was a self-inflicted wound to acquire property at a heavy price. The CRA should not acquire valuable property that could be components of another development, as they become a hostage of their own sale price. If they do not go with one party, they could drive a business out of Boynton Beach. He hoped in the future, when they know adjacent property owners are interested in a property, they sit with them to offer assistance and advise they will offer so much and limit their exposure. The CRA had no use for the property and there were myths circulating about a Fire Station, a dog park or other use. He criticized the Board for not acquiring a deal prior to acquisition. The difference in price was $130,000. He thought it was a bad business decision that did not sit well with him and it could have been avoided. Mr. Casello agreed. 19 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 Mr. McCray asked Vice Chair Katz if he saw the Amerigas site with its rusted tanks and noted the property was deplorable. He was glad they were gone. Mayor Grant thought the CRA should get involved with purchasing certain properties and thought they could evaluate looking at the CRA for a loan rather than buying property outright and improving it during the Strategic Planning Session. There are a lot of options. D. CRA Board Approved Design Scope of Services Work Order with Kimley-Horn & Associates, Inc. for the Boynton Beach Boulevard Streetscape Improvement Project, Construction Design Plans Mr. Simon explained Kimley Horn attended the CRA Advisory Board meeting on April 6th to present designs viewed by the CRA Board in February to gain additional public input on the concept before beginning the design phase of the contract the Board approved in February. The meeting was well attended and input was received. The Advisory Board favored the design and concepts were included that would return to the CRA and CRA Advisory Boards for final approval before starting the hard design phase of the drawings. Marwan Mufley, Project Manager, presented the design for Boynton Beach Boulevard as part of the approved Master Plan for the CRA. It calls for complete street design guidelines and improving the gateways off 1-95. The bike lanes are being added; they enhanced medians and slightly narrowed traveler lanes, but maintaining all lanes as they are. Access will be maintained, for the most part as it currently is. A visual of the west end at 1-95 was viewed. Kimley Horn conducted a pedestrian count at the Marathon Gas station just west of Seacrest and by the school. The highest count after 5 p.m. had 19 pedestrians in one hour, which was one pedestrian shy of the Florida Department of Transportation (FDOT) threshold for considering a cross walk. Mr. Mufley commented they will speak with FDOT about it and if there is one crosswalk location, perhaps people will use it. There are some areas with striping in the center lane and they would convert that to a raised median with large trees east of Seacrest. They could extend some medians and turn lanes by the railroad tracks. He noted as driveways decrease with redevelopment, they could lengthen the median. He showed before and after photos eastbound from 1-95. Mr. Mufley advised Jonathan Hague, Landscape Architect, would review the different concepts. The intersection at 1-95 northbound east onto Boynton Beach Boulevard was viewed. Kimley Horn will convert a traffic separator into a planted median that expands wider as it moves east. The conceptual image showed a wave concept gateway feature at the corner and introduced signage on US 1. Mr. Mufley explained FDOT plans called for widening the median, and it was being studied. There is room at the corner for an entry feature which will be moved further out if the widening takes place if coordinated with FDOT. Models were viewed west of Boynton Beach Boulevard showing a leaf paver pattern on the sidewalk, which could be accomplished with pavers or colored concrete. Visuals of planted areas for large shade trees were viewed. 20 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11; 2017 A true bike lane was included in the project including the markings. Concepts for intersection paver patterns were reviewed. Areas east of Seacrest were viewed showing smaller medians. A more traditional concept was viewed and another included a sailfish design in the middle of the intersection. Another concept included a wave pattern along the sidewalk using blue concrete or a blue glass infused pavers. This area could accommodate public art. Mr. McCray asked who would maintain the shrubs and learned FDOT will require the City to handle the maintenance. Vice Chair Katz liked the quantity of trees and asked if an arborist determined a maximum or acceptable amount of trees. Mr. Hague explained they have to deal with issues such as utilities, driveways and distance from intersections. There is a limited number of places they could have trees. Mr. Simon explained the Advisory Board agreed the wave section was the preferred design. Ms. Romelus asked if the colored concrete increased the cost. Mr. Hague explained they will look at options or some other treatments. If they wanted the wave pattern in the sidewalk it could be added to a limited location. Mayor Grant asked about a mosaic aspect and glass. Mr. Hague explained it will add cost. It is a type of paver many manufacturers use. Glass aggregate is added to the top which gets exposed when they hone the top of the paver. It was similar to a glass terrazzo. It was not super expensive. The blue glass will not fade. All liked the wave design. The next step is to have the dimensions reviewed by FDOT and coordinate with FPL regarding the underground utilities. They will survey the roadway to get the design information and they need to coordinate with the CRA on the 30% plans going on from there. They will work with FDOT for a cross walk by Marathon and there was no need for a crosswalk on 1St Street. E. Six Month Financial Update and Capital Project Review Susan Harris, Finance Director, explained at this time of year, staff expects to have spent about 50% of the budget and they are on target as it pertains to the General Fund. The tax increment revenue payment is made in December and deposited into the General Fund and then moved over to the Project Fund and Debt Service Fund. The only funds that remain in the General Fund is the operating expenses, insurance, building maintenance, administrative costs, salaries and benefits. Exhibit A was reviewed listing the debt service which already paid out $256,000 with $1.9 million to be paid in September on time. Staff transferred $6 million to the project fund. Project fund revenues showed transfers in from the General Fund from tax increment revenues, rollovers from the prior year for multi-year ongoing projects and this year, proceeds from property sales and a fund balance allocation. Ms. Harris organized the project fund and reviewed operating expenses, contingencies, professional services, rent expense and legal fees. Ms. Harris reviewed DIFA payments, economic development grants and market programs, projects and programs which included community policing, neighborhood sustainability, community support programs and special events were reviewed. Exhibit C was reviewed. Ms. Harris noted the last column was the amounts available for reallocation. 21 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 Staff anticipated spending the entire $1.9 million in property purchases this year. The Marina Open Space had $200,000 budgeted: $20,000 was spent and another $80,000 was expected to be spent, leaving $100,000 the Board could reallocate. Staff had to hold funds for 211 E. Ocean Avenue. The $698,000 budgeted for a dog park would not be spent for that purpose and could be reallocated. Staff felt they should keep the funds allocated for site work and demolition, and stabilization of the Old High School. The Town Square and MILK Corridor Redevelopment funds must be retained and staff will spend the funds allocated for the Model Block. There is $800,000 available for reallocation in this year's budget. Additionally, there was a general fund unassigned fund balance of $671,000 the Board could reallocate now or roll over to next year. The proceeds for 211 E. Ocean Avenue received September 301h of last year was $240,000 which yielded a total of $1.7 million that could be reallocated. Mr. Simon noted the dog park, in regard to the Strategic Plan, has not been officially removed. The Board could make a motion to formally eliminate the item if desired. He commented this goes back to the Cottage District the Board had discussed. They will need about $1.8 million for infrastructure and site improvements. He commented the Board could defer the item pending the outcome of the Ocean Breeze East project or the MLK project or Town Square item. The Board could wait until the budget to decide on the disposition of these items and/or consider looking at the items on a five-year horizon and determine what to set aside. Mr. Casello noted the $1 million cash for the Roundstone project could come from these funds. Mr. Simon responded it could and had wanted to ask Roundstone if the $1 million was a requirement for the tax credits, HUD financing or something they were asking for. Mayor Grant asked if more funds needed to be added to Economic Development Grants. Ms. Harris responded they did and she suggested adding another $200,000 to fund the program to the end of the year. Mr. Simon agreed. Motion Mr. McCray moved to approve. The Board could reallocate $1.7 million. Vice Chair Katz suggested reallocating $212,000 toward the Economic Development grants as requested, reallocating $500,000 in a dedicated amount for the potential Ocean Breeze East and/or infrastructure for the Cottage District and $1 million for the Town Square. If the CRA does not allocate for priorities they start eroding on less important things. Mayor Grant wanted to wait to hear from NuRock if they get the tax credit and wanted to know if unsuccessful, if they could still purchase the priority even though NuRock would not have won the tax credit. Mr. Simon was uncertain. Vice Chair Katz wanted to direct the CRA Director and staff to investigate to see if there is any assignment of NuRock's purchase and development agreement. It was noted reallocation can be done at any point, other than the economic development grant. 22 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 Motion Vice Chair Katz moved $212,090 be allocated to economic development grants. Ms. Harris will reallocate the funds from the dog park budget line which will reduce that number and leave all else in place. Mr. McCray seconded the motion that unanimously passed. In addition to Vice Chair Katz's motion, Ms. Romelus queried if the Board should start a savings account for redesign of Boynton Beach Boulevard, similar to the Town Square as portions of the redesign may fall under the definition of the Town Square. Mr. Simon noted as the budget moves forward they can set aside the $1.5 million and staff could allocate as needed. Boynton Beach Boulevard, outside of Town Square, will cost a significant amount of money. He thought a timeline when those funds will be more immediately needed was appropriate to work towards the future. Boynton Beach Boulevard is an 18 -month design process done in two sections with a two-year window for construction and the Boynton Beach Boulevard project was further out than the Town Square. They can start allocating funds for the project now. (Mr. Casello left the dais at 9:55 p.m.) Mr. Simon would want to talk to the City about maintenance costs when the project is constructed. Vice Chair Katz asked if the CRA could issue a bond. Mr. Simon explained he would have to consult with bond counsel and there was discussion about it with the Town Square, They have a TIF allocation for the next eight years. He noted bond counsel can only use non -committed funds. Ms. Romelus asked if there was something before the Legislature about CRAs' ability to start new bonds. Mr. Simon explained there was but it would only apply if legislation passed. (Mr. Casello returned at 9:58 p.m.) XIV. New Business A. Consideration of the Letter of Intent from St. John's Missionary Baptist Church for the Purchase of the CRA Owned Property Location at 700 N. Seacrest Boulevard, also known as the Ocean Breeze East Side B. Consideration of Approval of System Audit Reports and Payment Release to Hart Seabourn Cove, LLC for the Properties known as Seabourn Cove — Phase I & Phase II Mr. Simon noted the audit report and advised it was determined Seabourn Cove met their obligation under the agreement. The motion is to approve releasing payment. 23 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 Motion Mr. McCray moved to approve. Ms. Romelus seconded the motion that unanimously passed. C. Consideration of the Purchase of 340 NE 10`'" Avenue (MLK, Jr. Blvd) Mr. Simon explained they learned of edits and suggestions from the property owner that concerned staff and CRA Legal Counsel. He recommended this item be tabled to further explore additional requirements the owner revealed. Motion Ms. Romelus moved to table. Mr. McCray seconded the motion that unanimously passed. D. Consideration of Changes to the CRA Procurement Policy Relating to "Piggybacking" for Professional Services Mr. Simon explained this item would amend the procurement policy in reference to "Piggybacking" for Professional Services and increasing the piggyback limit for CCNA related professional services to match the current legislative standard under Florida Statute. Motion Mr. McCray moved to approve. Ms. Romelus seconded the motion. Mr. Simon explained procurement does not specifically address the ability of CRAs to piggyback on contracts that are not of material goods or contractual services such as contractors or electricians. When using professional service category of contract, the restrictions and requirements under the CCNA apply. They cannot bid architect against architect, or engineer against engineer as part of the RFQ process, once that work is above $35,000. Currently, procurement for RFPs and RFQs is $25,000. He suggested the CRA's procurement for professional services mirror the Statute at $35,000. Ms. Romelus asked if the amount would preclude or make it more difficult for local or smaller businesses to respond. Mr. Simon explained it raises the ceiling for a small local firm to respond and he did not think it would affect the local business at all. Once they reach the $35,000 threshold, they have to issue an RFQ anyway. The RFQ would be written to add criteria to contractual services. Mr. Casello asked what the City thought about the regulations and learned the City already operates under the CCNA. Attorney Duhy explained most local governments operate in conformance with statutory requirements and do not have policies because the statutory requirements can change annually. The CRA policy was more specific and local government can be more restrictive 24 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 than the Statute, but not less restrictive. Staff felt it was better to be consistent with the Statute as opposed to having an inconsistency between the Statute and policy. Vice Chair Katz also seconded the motion that unanimously passed. D. Consideration of Special Events Grant for Etcetera Entertainment, Inc. Ian Garman, 16281 E. Glasgow Drive, Loxahatchee, planned to have a celebration of the local breweries and food Boynton Beach has to offer. The brunch -themed event will be hosted at Intracoastal Park and the Clubhouse. They are choosing toods and breweries from Boynton Beach. There will be some breweries from outside the City, because of their following, to sell the event out, but event goers may not be aware of Boynton Beach Breweries. If they could have included only Boynton Beach breweries, they would have done so. He announced he hoped to hold the event every year. Parking is limited at Intracoastal Park and would be used for VIP parking. General admission ticket holders will be bussed to the site, which was also used for the July 4th event. The event is capped at 1,300 people. The VIP ticket price is $100 and the general advance purchase ticket price is $65, otherwise the price is $75. Three food vouchers are included in the price which are portion -sized and not tastings. This was Mr. Garman's first event. He had consulted with other production companies when he lived in California. This is being done in conjunction with Boynton Beach breweries. They also identified local charities they intend to contribute some of the proceeds which were educational, environmental and hunger issues specific to Boynton Beach. Mr. Garman explained they are a for profit group. Mr. Simon asked if there were other entities providing funds other than the CRA and learned Mr. Garman was working with alcohol vendors to obtain funding and have them donate product. Mr. McCray asked when the event was planned and noted the deadline was April 30th. Mr. Garman was working on this event nine months ago. Mr. McCray thought the request seemed rushed. He asked how Mr. Garman would distinguish paid guests from visitors. Mr. Garman explained they would use pocket fencing to border the park to prohibit individuals from entering. Staff members would also be on hand and a security plan was developed with the Police department. Mr. Garman explained they were unaware they would qualify for CRA funding. Mr. McCray asked if he worked with the City to ensure there are no other events scheduled for the park and learned there were some conflicts so he pushed the event back to April 30th. There are no conflicting events at the park. The security budget was contained under staffing and Police on the spread sheet. Off-duty officers would be used. Mr. Garman advertised the event on Facebook and received over 6,438 likes. He intended to purchase printed signs with the CRA funds and advised the event is moving forward rain or shine with or without CRA funding. 25 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 Motion Vice Chair Katz moved to approve. Mr. Casello seconded the motion. Mr. Simon pointed out it is a reimbursable grant. The motion passed 4-1 (Mr. McCray dissenting.) Ms. Romelus suggested adding a future agenda item to revise grant requests to prevent last minute applications in the future. Mayor Grant requested adding an assignment to the CRA Advisory Board regarding CRA signature events. Mayor Grant specified for speciai events, the Advisory Board review the current policies and options. It was more of an in depth recommendation looking at other CRAs and non -profits and their vendor policies to determine how the Delray Affair has the same vendors and compare the Delray Beach vendor policy to the CRA's vendor policy. Motion Ms. Romelus moved to approve the additional two assignments. Vice Chair Katz seconded the motion that unanimously passed. XIV. CRA Advisory Board A. CRA Advisory Board Agenda — March 2, 2017 B. Minutes from CRAAB Meeting — March 2, 2017 C. Pending Assignments 1. CRA Board Approved Design Scope of Services Work Order with Kimley- Horn & Associates, Inc. for the Boynton Beach Boulevard Streetscape Improvement Project, Construction Design Plans D. Reports on Pending Assignments 1. Discussion and Creation of Draft Community Benefits Agreement 2. Research and Recommendations Regarding Tax Increment Revenue Funding Agreements and the Current Policy Regarding TIRFA Agreements E. New Assignments: None 26 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida April 11, 2017 XV. Future Agenda Items A. Direction Regarding the Disposal of CRA Owned Properties Located at E. MILK, 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. 13th meeting) D. Discussion and Consideration on Formation of Residential Improvement Program XVI. Adjournment Motion Mr. McCray moved to adjourn. Ms. Romelus seconded the motion that unanimously passed. The meeting was adjourned at 10:20 p.m. Catherine Cherry Minutes Specialist 27