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Agenda 05-09-17BOIT� =BE RA CRA Board Meeting uesday, May 9, 2017 City Commission Chambers 10.0. Eo Boynton Beach .Blvd. . Boynton Beach, F.L. 33435 AGENDA'. I. -Call to Order II. Invocation Ill. Roll Call IV. Agenda Approval A. Additions; Deletions, Corrections to the Agenda B. Adoption of Agenda Vo Legal VI. Informational Items and Disclosures by Board Members arab CRA Staff: -A. Disclosure of Conflicts, Contacts, and Relationships for Items Presented to the CRA Board on Agenda Items B. Informational Announcements VII. Announcements & Awards A. Movies in the Park B. Music in the Park C. Habitat Home Dedications :.Model Block Project _ Speaker Jeffrey Fengler VIII. Consent Agenda A. Approval of Period Ended April 30, 2017 Financial Report B. Monthly Purchase Orders . C. Approval, of CRA Board :Meeting Minutes- April:11, 2017 D_. Approval of an Increase in Eligible Grant Program Funding for Del Sol Bakery,. LLC. .f. Approval of FICE Design, Inc. for Commercial Rent Reimbursement Grant Program ti F. Approval of Boynton Beach Real Estate Pros for Commercial Rent Reimbursement Grant Program IN. Pulled Consent Agenda Items X lhf6rmation, Only A. Public Comment Log B. Marketing and Business Development Campaign C. Recap of the 1st Social Media Outreach Program Meeting D. Status of 480 E. Ocean Ave and 211 E. Ocean Ave XI. Public Comments: (Note: Comments are limited to 3 minutes in duration) X116, Public Hearing X None -XIII. Old business. 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 (Tabled 3/15/17). B. 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.Si.de C.. Status of the 2.97 Acre Project Site known as MLK, Jr. South XIV. New Business A. Community Caring Center 1st and 2...nd Quarterly ReportB. Consideration of Request for Event Sponsorship by the GBDC Entrepreneurship Institute Q. Consideration of Special Events Grant. for the Heart of Boynton Community Association, Inc. D. Considerationof ILA with the City of Boynton Beach for Partial Funding for the Economic Development Director E. Consideration of the Purchase and Sales Agreement With Larry Finkelstein fo. r the Property erty located at . 340 NE 10th Avenue, (MLK, Jr. Blvd.) F. Consideration of the Purchase and Sales Agreement with Steven Reichel forthe . Pro . pert,y . located at 52 . 1 NE2nd Street G. Consideration of Dates for Budget Meeting — FY 2017 - 2018 xv. CRA Advisoiv Board A. CRA Advisory Board Agenda — May 4, 2017 B. Minutes from CRAAB Meeting — April 6, 2017 C. Pending Assignments. a I' YNT 1 H 1. None D. Reporl:s on Pending Assignments _ 1. None E._. New Assignments from CRA.Board Meeting April 12, 20'17:. 1.. Review and. Revise. Current CRA Special Event Grants 2. Review and Revise Vendor Policy for. other CRA's/Non- Profits . XVI.:. Future Agenda Iters 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. Interim Director. Position (tabled until June 2017. — 6 mos. From Dec. 13t' meeting) C. CareerSource March Career Expo Recap July 11, 2017 XVI Adjournment .. .. NOTICE IF A PERSON DECIDES TO APPEAL ANY DECISION MADE BY. THE CRA BOARD, WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING, HEISHE WILL NEED A RECORD OF THE - PROCEEDINGS AND, FOR SUCH PURPOSE,.HE/SHE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF. THE PROCEEDING IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND - EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. (F.S: 286.0105) THE CRA SHALL FURNISH APPROPRIATE AUXILIARY AIDS AND SERVICES WHERE NECESSARY TO AFFORD AN INDIVIDUAL WITH A DISABILITY AN,EQUAL OPPORTUNITY TO PARTICIPATE IN, AND ENJOY THE BENEFITS OF A SERVICE, PROGRAM, OR ACTIVITY CONDUCTED BY THE CRA. PLEASE CONTACT THE CRA', (561) 737-3256, AT LEAST 48 HOURS PRIOR TO THE. PROGRAM OR - ACTIVITY IN ORDER FOR THE CRA TO REASONABLY ACCOMMODATE YOUR REQUEST. - ADDITIONAL AGENDA ITEMS MAY BE ADDED SUBSEQUENT TO THE PUBLICATION OF THE AGENDA ON THE CRWS WEB SITE. INFORMATION REGARDING ITEMS ADDED T_ O THE AGENDA . . AFTER IT IS PUBLISHED ON THE CRA'S WEB SITE CAN BE OBTAINED FROM THE CRA OFFICE: r CRA BOARD MEETING OF: May 9, 2017 1 Consent Agenda I I Old Business I I New Business Legal Information Only AGENDA ITEM: VII.A. SUBJECT: Movies in the Park SUMMARY: • On June 2, 2017 the Boynton Beach CRA will wrap up the current season of Movies in the Park with a screening of the film School of Rock. • The feature film is rated PG -13 and is categorized as a musical/comedy. • Movie Synopsis- After being fired from his band Dewey Finn (Jack Black) takes a job as a substitute teacher for a private school. After discovering that his pupils are musically gifted he decides to form a rock-and-roll band, so that he can enter a "Battle of the Bands" competition. This movie is has many laugh out loud scenes and is suitable for the entire family. • This free event will be at the Ocean Avenue Amphitheatre starting at 8.00 P.M. and run until approximately 10.00 P.M. • Benches will be available for seating, but guests are encouraged to bring beach chairs and blankets. • A trailer of select CRA district businesses will be shown prior to the start of the film. • Gift cards donated by selected CRA district businesses will be given away to guests through a drawing after the movie. • Food, snacks, and beverages will be available for purchase. • Free parking is available onsite. • The 2017/2018 Movies in the Park season will begin on October 6, 2017. • Marketing images (Exhibit A) FISCAL IMPACT: FY 2017-2017 Budget, Line Item 02-58500-480 CRA PLAN/PROJECT/PROGRAM: 2016 Boynton Beach Community Redevelopment Plan CRAAB RECOMMENDATION: N/A CRA BOARD MOTION/OPTIONS: Unless otherwise offered by the CRA Board, a motion is not required at this time Digitally signed by Mercedes Mercedes Coppin Coppin Date: 2017.05.04 12:50:15 -04'00' Mercedes Coppin, Special Events Coordinator i *AV :n:lkr_N r r CRA BOARD MEETING OF: May 9, 2017 1 Consent Agenda I I Old Business I I New Business Legal Information Only AGENDA ITEM: VII.B. SUBJECT: Music on the Rocks SUMMARY: • On Friday, May 19, 2017 the Boynton Beach CRA presents- Music on the Rocks featuring, The Jeff Harding Band, a local 4 -piece rock/pop band. • This FREE event takes place at the Ocean Avenue Amphitheatre, with live music from 7.00 P.M. to 10.00 P.M. • Food Truck Invasion will start selling food and refreshments at 6.00 PM. • Cocktails and beer will be available for purchase from the mobile bar service. • Free parking is available onsite. • The final Music on the Rocks concert for the 2016/2017 season will be on June 16, 2017. The feature band will be the Palm Beach School of Rock. • Marketing images (Exhibit A) FISCAL IMPACT: FY 2016 — 2017 Budget, Line item 02-58500-480 CRA PLAN/PROJECT/PROGRAM: 2016 Boynton Beach Community Redevelopment Plan CRAAB RECOMMENDATION: N/A CRA BOARD MOTION/OPTIONS: Unless otherwise offered by the CRA Board, a motion is not required at this time Digitally signed by Mercedes Mercedes Coppin Coppin Date: 2017.05.04 12:51:04 -04'00' Mercedes Coppin, Special Events Coordinator hr,(1 k x 4ti �ry rr ROCKS 7-lOpm U9 Ita,l t? an A ww cc Jay Itnrr Eexth MTRA IWA3M 6 -loam lfi.b R .� Rit. R I n Noir 18th Dec 16th ]an 26th F 11m Apr' 21st May 1NM Jean_ 16th nlu 111 0 __r 4449 �x FREE CONCERT SERIES I OCEAN AVENUE AMPHITHEATRE' f nlcy Cocktails, tti ww, ',� the food Truck lnvawn on the.31t1 i'raay of each month r CRA BOARD MEETING OF: May 9, 2017 1 Consent Agenda I I Old Business I I New Business I I Legal Information Only CRAAB AGENDA ITEM: VIII.C. SUBJECT: Habitat Home Dedications - Model Block Project - Speaker Jeffrey Fengler SUMMARY: On April 18, 2017 Habitat for Humanity of South Palm Beach County had two home dedications for the CRA owned properties located at 137 and 141 W. Martin Luther King, Jr. Blvd. as part of the collaborative City/CRA Model Block Project. To date Habitat for Humanity and the Boynton Beach Faith Based CDC have completed a total of four homes for the Model Block Project. Currently the City and the CRA are working closely to re -plat the properties located on NW 11 Street in an effort to complete the Model Block Project with single family homes. FISCAL IMPACT: N/A CRA PLAN/PROJECT/PROGRAM: 2016 Boynton Beach Community Redevelopment Plan CRAAB RECOMMENDATION: N/A CRA BOARD MOTION/OPTIONS: N/A Digitally signed by Michael Simon Michael Sim o n em cn=Michael Simon, o, ou, email=simonm@bbfl.us, c=US Date: 2017.05.05 14:23:38 -04'00' Michael Simon, Interim Executive Director � 2- : \2 AV ? h \' \ ./ } y` : » � /° + - ,��...�\��.. - r CRA BOARD MEETING OF: May 9, 2017 X1 Consent Agenda I I Old Business I I New Business I I Legal Information Only CRAAB AGENDA ITEM: VIII.A. SUBJECT: Approval of Period Ending April 30, 2017 Financial Report SUMMARY: Monthly budget report to the CRA Board representing the revenues and expenses for the preceding month FISCAL IMPACT: N/A CRA PLAN/PROJECT/PROGRAM: 2016 Boynton Beach Community Redevelopment Plan and FY 2016-2017 CRA Budget CRAAB RECOMMENDATION: N/A CRA BOARD MOTION/OPTIONS: Approve the monthly Financial Report Digitally signed by Susan Harris ems cn=Susan Harris, Susan Hard c= email=HarrisSu@bbfl.us's, cUS Date: 2017.05.04 11:26:34 -04'00' Susan Harris, Finance Director I N c) o o H 11 ;v o oo Ln i to w -q ou o o oo oD o o cj II 11 rl w I Z 0 W I� ri 0 lD M01 C� r+i o c z m C:, 0 'D dP B H if ri II li 11 W 0IW 0 r, 0 m r- 0 0 m w 0 0 0 U) LO H m C� r, .1 O" m ': tel m 10 1D C� 1� 10 W m w C� 'I w 0 0 11 m w hMOHHNOC>MWWOO lD II :: W u U) oD Ln 'I, o Nm N 0H Ln H m w o w m o-, l0 II u) H w C4 'D( m II In l0 l0 10 M O� U, 1i Let 0 r� In W W II ODr- r r- CO Ln II r- N 0) 'IV w 0 14 m N 0 0O Ln U Ln m w II 11 � -1 0 C� C� C� 0� C� C� C� CCo m II � 4 C> 0 0 C> C, C, 0 0 0 01 0 H O. . . . . o C� II m r, r- 0 WII Ln OD m c 0 Ln it m CV O 11 W II II It It II M 01 M C� h C� 01 O O� Ui M C� C�tl9 It N M M 00 4 C; OI OD I r - E La u H H to -0 M 1!- W m N w w Nw a, H H 0 0, II � (� � � H it N , I 010 OD CO �v r - B H N Of II co m co 'A l� H w r- 'D 11 o NH 11 0 () W:i t`-r� 0 0 m r., 0 1-1 tel , -1 01 i: rr) i LC11 1 H H H Ln M 1414 1 11l H ii q KWWC0 N w C> H 11 Hit CN U 6k 0 0 of o 05 II of M O1 O tD N o . . . . . . . .I Ln It 0 d Ltl 9 W II If l tetO1 0 19 Ntetli M0 0 N0 C�i O (1) C; IV 0 i r- 11 01 r- o) c� Ln of Ln -o Ln c� 01' N m 0 0 la NLn 00 ID W r- Cl) M Ln r- N 11 rA WtYJ 1-4 k t a> tel II 0 E. 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SUBJECT: Monthly Purchase Orders SUMMARY: Attached is the purchase order report for April 2017 for amounts $10,000 or above FISCAL IMPACT: See Attached CRA PLAN/PROJECT/PROGRAM: 2016 Boynton Beach Community Redevelopment Plan and FY 2016-2017 CRA Budget CRAAB RECOMMENDATION: N/A CRA BOARD MOTION/OPTIONS: Approve the monthly Purchase Order Report Digitally signed by Susan Harris ems cn=Susan Harris, Susan Hard c= email=HarrisSu@bbfl.us's, cUS Date: 2017.05.04 10:39:13 -04'00' Susan Harris, Finance Director Boynton Beach CRA Purchase Order Report Month: April 2017 Vendor Amount Funding Source Description Grandma's Manuafacture LLC $25,000 02-58400-444 Commercial Facade Grant Grandma's Manuafacture LLC $20,000 02-58400-444 Commercial Construction Permit Grant Home with Help Florida, Inc. $10,800 02-58400-444 Commercial Rent Subsidy Bark Avenue Hotel & Spa LLP $10,800 02-58400-444 Commercial Rent Subsidy Posh Realty LLC $15,000 02-58400-444 Commercial Interior Build -Out Posh Realty LLC $10,800 02-58400-444 Commercial Rent Subsidy Seoul Sister Yoga Inc. $25,000 02-58400-444 Commercial Interior Build -Out Seoul Sister Yoga Inc. $10,800 02-58400-444 Commercial Rent Subsidy Home Stretchers $17,050 02-58200-404 Marina Deck/Walkway Project Kimley-Horn and Associates $28,240 02-58200-406 NW 11th Lighting/Model Block Kimley-Horn and Associates $13,803 02-58200-406 NW 11th Ave Re-plat/Model Block T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by Meeting\CRA Board\FY 2016 - 2017 Board Meetings\May 2017\VIIIB Back Up MINUTES 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 r CRA BOARD MEETING OF: May 9, 2017 X1 Consent Agenda I I Old Business I I New Business I I Legal Information Only CRAAB AGENDA ITEM: VIII.D. SUBJECT: Approval of an Increase in Eligible Grant Program Funding for Del Sol Bakery, LLC SUMMARY: On July 12, 2016 the CRA Board approved a Commercial Interior Build -Out Grant in the amount of $1,100 for Del Sol Bakery, LLC as the tenant of the commercial property located at 1600 N. Federal Hwy, Unit 15, Boynton Beach, FL 33435 (see Attachment 1). Del Sol Bakery, LLC is requesting an increase in grant funding in the amount of $1,909.65 for the items outlined in Attachment 11. The grant recipient did not originally request grant funding at the July 12, 2017 CRA Board meeting for these items due to an agreement with the landlord. However, the landlord did not fulfill the agreement and therefore, Del Sol Bakery, LLC is responsible for the costs of these items. They are requesting an increase in grant funding for reimbursement for the outlined items. If approved the total CRA grant funding would be $3,009.65 FISCAL IMPACT: $2,000 Project Fund Line Item 02-58400-444 CRA PLAN/PROJECT/PROGRAM: 2016 Boynton Beach Community Redevelopment Plan CRAAB RECOMMENDATION: N/A CRA BOARD MOTION/OPTIONS: Digitally signed by Michael Simon Michael Simon em cn=Michael Simon, o, ou, email=simonm@bbfl.us, c=US Date: 2017.05.05 14:24:50 -04'00' Michael Simon, Interim Executive Director ATTACHMENT Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida July 12, 2016 loitering by the Bells store and asked how receptive the owners are of the Officers and learned they were not receptive of their presence at all. The owner feels the program is over policing. A youth from a day care program was present with Officers Diehl and Paramore. Officer Paramore was mentoring him and he has been coming into the office for the last two months. He is 11 years old and attends Odyssey Middle School. Ms. Brooks announced new employee Mercedes Copan was hired after July 4th replacing Renee Roberts. She handles marketing and events, and the website and social media, working with Christopher Burdick and Tracey Smith -Coffey. B. Informational Announcements VII. Announcements & Awards: None Vill. Consent Agenda: A. Approval of Minutes — CRA Board Meeting June 8, 2016 B. Approval of Period Ended June 30, 2016 Financial Report C. Monthly Purchase Orders D. Approval of Commercial Facade Grant to Jamerican Cuisine, LLC in the Amount of $2,725 E. Approval of Commercial Rent Reimbursement Grant to Jamerican Cuisine, LLC in the Amount of $9,972 F. Approval of Commercial Interior Build -Out Grant to Jamerican Cuisine, LLC in the Amount of $6,875 G. Approval of Commercial Facade Grant to 508 E BBB, LLC in the Amount of $5,000 H. Approval of Commercial Rent Reimbursement Grant to Service First Processing, Inc. in the Amount of $10,800 I. Approval of Commercial Interior Build -Out Grant to Service First Processing, Inc. in the Amount of $25,000 J. Approval of Commercial Interior Build -Out Grant to Del Sal Bakery, LLC in an amount not to exceed $1,100 3 ATTACHMENT II 4/25/2017 Del Sol Bakery 1600 N F-#- :• • deBoynton '- •s i s * r e68066726 ww-oijO,�jo �Ibazkery.corn We would like to submit the following build out expenses that we have incurred from 9/2016 thru April 17, 2017. Counters & Floor Tile $1902.82 Light fixtures $613.48 3 phase Electric outlet $185.00 Window tinting $500.00 Plumbing air -break installation $618.00 TOTAL $3819.30 1 COUNTERS & FLOOR TILE / TOTAL $1902.82 - originally our landlord Scott Maslin had approved for us to purchase the counters and the store front tile as part of the build out to be refunded in rent. I'm including copies of his emails dated 9/8/2016 and 9/23/2016 approving both purchases. However, when we went to mediation in order to get the store completed, Scott said that due to all the construction delays and since it had not been specified in our signed lease contract, he would not refund these. Following are the details: a. Attachments i. copies of emails from Scott Maslin ii. receipts from Ikea & Floor & Decor for materials purchased iii. Email from GC Darrel Fassano for counter installation charge, copy of cancelled check, waiting for Letter of lien release iv. Pictures of counters and floor Counters / $1468.30 - 2 counters located in the front of the store for food display with shelving for paper goods. Consisting of cabinets from Ikea, wood counters from Floor & Decor and carpentry done by GC Darrel Fasano i. Ikea cabinets for counter - $708.08 paid with Visa 9/2012016 ii. Floor & Decor oak wood tops for counter - $387 + tax = $410.22 paid with d. Refund - Although this work was supposed to be paid by the landlord andit co 'j a great deal less than their estimated 3 day work, I have sent several emails t I Cohen Property Management company and have not received any replies. I'v spoken with Derek Baker our Property Manager and he has said that he will lei ri7r4F.TITOMBPTIMIIFPT--TITOTIIT-=# MIFTITI'MMIST'IWp � � � � I I •� � I � � �! � ii � I I � , •I ii � 1 1 1 1 1 1 111 11 11 11 Plumbing before 3 phase electrical conduit Counters and floor the 4 light fixtures r CRA BOARD MEETING OF: May 9, 2017 X I Consent Agenda I I Old Business I I New Business Legal Information Only CRAAB AGENDA ITEM: VIII.E. SUBJECT: Approval of FICE Design, Inc. for Commercial Rent Reimbursement Grant Program SUMMARY: The Commercial Rent Reimbursement Grant provides eligible new or existing businesses with rent payment assistance for a maximum period of twelve months within the first eighteen months of a multi-year lease. FICE Design, Inc. is a tenant located in Casa Costa at 400 N. Federal Highway, Boynton Beach, FL 33435. Base rent, as specified in the lease, is $2,263.54. FICE Design, Inc. falls under the terms of a Tier II business (as outlined in the grant application). If approved the applicant is entitled to receive reimbursement for half of its monthly rent or maximum of $900 per month for a 12 month period. The maximum total reimbursement for this business is $10,800. The applicant meets the eligibility requirements under program guidelines and will be reimbursed on a quarterly basis with proof of rent payments. FISCAL IMPACT: $10,800 — Project Fund 02-58400-444 CRA PLAN/PROJECT/PROGRAM: 2016 Boynton Beach Community Redevelopment Plan CRAAB RECOMMENDATION: N/A CRA BOARD MOTION/OPTIONS: Approve the Commercial Rent Reimbursement Grant not to exceed $10,800 to FICE Design Inc, located at 400 N. Federal Highway, Boynton Beach, FL 33435. Digitally signed by Michael Simon Michael Simon DN: cn=Michael Simon, o, ou, email=simonm@bbfl.us, c=US Date: 2017.05.05 14:25:14 -04'00' Michael Simon, Interim Executive Director BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY COMMERCIAL RENT REIMBURSEMENT PROGRAM Program Rules Re4ulroftients lyp- c� 11zt,- [IN 1-11 arl P -M 11 Applicants must meet all of the follovving requirements in, order to be inside d eligible to receive grant funding. - Must be located Within the CRA District (see aqacheo map). W Must Provide proof that the business Is properly licensed b all necessary level's of Bn y government and professional associations or 6g6h cies. (Copies of City & Qountv licenses or receipts that the licenses have been applied fbr.) A new business Is d ' as a co p4 in operation. for I Ofined m ny ess thansix months or ",olocating to Boynton Beach. 'An existing business is defined as a company that has been in operation Wthin the ORA dishit lor a minimum of two, . years at the time of application and has at least two years remaining on Its existing lease. -,:-. � [nfflws Page I of 11 710 N. VOPW Highwty Boynton Beach, FL 33435 Phone 561-737- 256 Fat 561-737-31,25.8 45. An existing business must expand to occupy more than fifty percent (50%) of its current square footage size. Verification of this threshold must be provided in the application package. Exceptions to this rule may be made at the discretion of the CRA Board if the tenant is losing their current space due to redevelopment of the site. V/6- The Applicant's Experian consumer report must reflect an acceptable level of financial stab!14, within the sole discretion of the CRA, as an eligibility requirement for funding. A copy of the consumer report will be provided to the Applicant upon request. Applicants whose Experlan credit score is below 601 are not eligible. If a majority of the business owners have credit scores below 601, the business is not eligible. V1. Applicant must have an executed mu'lti-year lease (two year minimum). Ill. In tilgible Businesses & Conditions The following businesses are considered ineligible for assistance under the Commercial Rent Reimbursement Program: • Firearm Sales • Convenience Stores • Religious Affiliated Retail Stores • Churches ® Non Profits • Tattoo Shops/Body Piercing/Body Art Shops • Financial Services (banking & check cashing stores) Take -Out Foods Adult Entertainment Liquor Stores Vapor Cigarette, Electronic Cigarette, E Cigarette Stores Kava Tea Bars Pawn Shops * Alcohol and/or Drug Rehabilitation Centers/Housing * Medical Research Centers/Housing air/ all Salons Fitness Centers Florists Any use determined by the CRA staff or the CRA or that would not advance the redevelopment of the CRA district. Subletting of the property by grant recipient is prohibited. Violation will constitute repaymes *f CRA grant funding, MET Ojt4ilil Initials Page 2 of 11 710 N. Federal Highway Boynton Beach, FL 33435 Phone 561-737-3256 Fax 561-737-3258 www.catchbo bo�lmt-onxonl sant Terms and Conditions This grant is diVided into two tiers. Each tie'r con" ts diftt6ht types of businesses that are sis of ,eligible and the amount of funding available to the business. Tier One Business (Full Service Restaurants Only) Tier One Businesses are eligible for U to half �0%6) of th bUI inoss bas mo My rent or $1,260 'per month,whichever -amount t- ♦ 1#' Only full service restaurants, with a minimum total seating capacity of So seats are eligible. The teotaUraht must have hours conducive for the rede I lopment of the downtown. We Operating hours Include but are not limited to 12:00 p.m. -!-� 9.400 M. M t # • ! # t t total• Restaurants with .!aunder Gourmet• I#t Market ■ ! J kery • Bed and Breakfast • Clothing Boutique - clothing, shoes & accessories • Home D6corlDdsign - home furnishings, art gallade$', kitchen Wa • oestationery,gifts,tt • est• • Medical • Law offices • Real• Insurance • Accounting Marketing Office Applicantt e - a proposed or -t t year minimum). The commettal leased6fine tho lat t"nant relationship and at minimum provide the following information: ' description of t, being ronted including square footage, and drawing of the space. Description of _ that are the terianft responslbillty� tnli►ala *age 3 of 11 7I0N F . Highway Boynton Beach, -FL 33435 Phone S61-737-3256 Fax 561-737-3259 Rental rate and deposits along with to of lease and methodology for future rent increases. Responsible party for interior and exterior repairs and/or improvements. Insurance requirements. Ability to terminate. Consequences of default on the lease. Rent reimbursements will not be paid until all construction has ended, City and Coun licenses are obtained and the business in open for operation. I The CRA will issue reimbursement on a quarterly basis I directly to the applicant for the monthly rent payment made to the Landlord upon receipt and verification that the payment has been cleared by the bank. The responsibility for all rental payments is between the contracted parties to the lease, as such the tenant and the landlord. As grantor, the CRA neither bears nor accepts any responsibility for payment of rent at any time, nor penalties incurred for the late arrival of #ayments by any party. The Commercial Rent Reimbursement program may only be used one time by any gpecific business entity or business owner. The CRA reserves the right to approve or deny any Commercial Rent Reimburseme Program application and to discontinue payments at any time if in its sole and absolu discretion it determines that the, business will not advance the goals and objectivi established for the economic development of the CRA District. The receipt of past paymen is not a guarantee of future payments. All applicants are strongly encouraged to meet with CRA staff in order to determine eligibility before submitting an application. Funding requests will not be considered until all required iocumentation is submitted to the CRA office. Application packets must include the following Vocumentation- I'/-' A nonrefundable fee of $100.00 is required to obtain a consumer report on the V business and princl-P-allo-wWr��rsf the business. Make check payable to: Boynton Beach CRA Completed and signed application. ,X Completed and signed Authorization to Perform Credit Gheck for the busin"eiss and each principal/owner of the business (forms attached to the application - multiple forrns may be needed for principal/owners of the business). rnrtrals Page 4 of 11 710 N. Federal Highway Boynton Beach, FL 33435 Phone 561-737-3256 Fax 561-737-3258 W9 Form (attachad to,grant application). CopyofGityandCou businesolldenses,ifanexir�tingbwsliiess. nt.V Resume for each principal/dwrior of the b siness. Copy of the corporate d ocuments for the applying business entity. Copy of executed or proposed multi-year commercial.lea agreement. 9. Two, (2) years of corporate, tax returns (for existing businesses on ly). Two (2) years of personal tax returns for the principals/owners of a now business. List of jobs to be created and filled including job descriptions, pay range and weekly' schedufie. For existing businesses, provide a list of all current positions including job descriptions. - prange and weekly schedule. If an existing business, located within t I he CRA District is expanding within the CRA District it rhust , pa to o , I p more than fifty ent (SOO/6) of its ex. nd ccU y ' C Apr, current square 400tago tizt. Veffication of this threshold must bev! ed. pro -d Floor plans outlining square footage of each location are acceptable. Exceptions to this rule may be made at the discretion of the CRA Board if the tenant is losing their current space due to redevelopment of the s te. Mym'l all a ........... as Rent reimbursement payments will be provided to the grant recipient on a quarterly b '1* beginning the fimt month the business'la open for operation u s bsequent to CRA B a OW approval. A maximum of twelve (12) consecutive monthly ren ents will be reirribu t paym I's to the approved applicant. Each re A shall be made within ten 00Y days of the start of the next appl* e po' Icabl . quar'l beginning on January 1, Aptil 1, July 1, and Octo I ber following the Initial ReirribuMemo. Request. Page 5 of 11 710N.Yedend Highway Boynton Houhly FL 3341$ -IN following - 2. Proof of rent payment (i.e., copies of the front & back of cancelled rent checks that quarter's reimbursement or proof of direct deposit). CRA staff will conduct a site visit before reimbursement payments begin in order to verify th the business is in operation. Staff may also conduct unannounced site Visits periodically order to ensure compliance with the terms of the grant agreement. I, The receipt of past payments is no guarantee of future payments. The CRA retains the'rig to discontinue rent reimbursement payments at any time according to its sole and absolu discretion. I The Boynton Beach CRA is a public agency and is governed by the "Florida Public Records Law" under Florida State Statutes, Chapter 119. Any documents provided by the Applicant(s) may be subject to production by the CRA upon receipt of a public records request, subject to any exemptions provided by Florida Law. Re responsiffifffify—UY-Ine applicantTo—R-EALFAF'.10-,,#,'IlLYER-STAND all aspects of the Grant Program's Rules/Requirements and Application. Initials, Page 6 of 11 710 N. Federal Highway Boynton Beach, Fl, 33435 I -79f--3 29% -F -M 1, ,,n,vw.cat-,hbo-,/nton.com ��10101:RTMIM I Fed Phone- 9 -A -a-l Fax' Existing Business: Yes-/ No- number ofyears irk ex1stbnce:—'3 Now Business to Boynton Beach: Yes V"' No Time at Current Lboa-tion. Do you have an exec V, No executed lease, agreement. Yes— If so, monthly bass rent Square footage of existing locarforl *100 aaDrax Type of S -x cs N*ulmber of Employees: CO HoUrSr of Operation: e6l - S Date Of girth= initials Page 7cif il 710 N. Fedad lHighway Bqnton Bear -4, FL 33435 Phone 561-737-3256 Fax 561 -737-3258 www.catdibovnton.com 2. PrInc4W jOwner Date iF Birth: Current Address: * .... .... L.3 ' Principal/OvIlner Name: 1te of S! Date Of Birth - Current ix'S. es • r f Are you applying for grant assistance under any other program offered � by the CRA (Tier One Businesses# Yes- Nq_Z If yes, what additional programsare you applying for Are you receiving grant assistance from any other governmental agenclew Yes No yes, list► grant sourcesand amounts: V • �YSG4�1W. Pup 8 of 11 a E w N f .m e# SUBMISSION OF AN APPLICATION 13 NOT A GUARANTEE OF FUNDING It is the responsibility of the applicant to READ AND UNDERSTAND all aspects of the Grant Program's Rules/Requirements and Application. MEM -11" *-N 1 -,is / V `e D t ll�l Title Date 4S -C --C-R- es Title Principal/Owner's Signature Date Printed Name Title Principal/Owner's signature Date Printed Name Title Notary as to Principal/Owner's Signatures. Multiple notary pages may be used if signing individually. STATE OF _Cjk COUNTY OF BEFORE ME, an officer duly authorized by law to administer oaths and ta acknowledge ments, personally appeared t 3 who is/are personally known to me or produced identificatioii,- and 'a&nowledged he/she executed- —thWforegoing Agree'm"ent ior the—use an'' purposes mentioned in it and that the instrument is his/her act and deeO. IN WITNESS OF THE FOREGOING, I have set my hand and official seal in the State and County aforesaid on this _�R �—*' L day Of 20ja. pV &ft+ Notify public Slaw of Florida Michele Shaw Commission 087074 01128!2018 '� 6 my Commission FF 087074 L4ToFd.VE.pi-es .. V jO�TqkR—Y—P— MY Commissionq- Page 10 of 11 Federal Highway Boynton Beach, FL 33435 Avtr ij I-JJJ-12jjl Jgl ji, -j ajo +� � a • � • € � ♦ ""d � N- "� � ,��. Jaz SCOUNTY OF,TAUOF f 1±+ � �S,' ✓. ?'i � , ' 1, 0 2 0 C, 0 .0 1� M1J nl ID < 7c ') < z 0 0 0 2 0 C, 0 THIS LEASE, made as of the "Effective Date" (as defined in the Standard Provisions) between Costa Center. LLC C'LESSOR!% and Florida International Consulting Engineers Design, Inc. (`'LESSEF') located at The Shops at Casa Costa. WITNESSETH: In consideration of the covenants herein contained, on the part of LESSEE to be kept and performed, LESSOR herein leases to LESSEE the "Demised Premises", being CU I containing 2,173 square feet, as depicted on attached Exhibit "B" and located within a Shopping Center known as The Shops at Casa Costa located at 400 US HWY I Boynton Beach, Florida TO HAVE AND TO HOLD the same unto LESSEE on the following terms and conditions: 1. "Commencement Date" shall mean full execution of the Lease by all parties. 2. "Rent Commencement" shall be the day Tenant receives its Certificate of Occupancy, however no later then three (3) month from the day Lessor completes its work. 3. "Lease Tenn" shall mean Thirty Six (36) months from the first of the month next succeeding the Rent Commencement Date. 4. "Permitted Use" shall mean use of the Demised Premises as a general office use under the name FILE Design. 5. "Rent" shall mean $27,162.50 per annum (Year 1), payable in equal monthly installments of $2,263.54 and Year 2 $27,477.38 payable monthly at $2,331.45 in advance plus sales tax, on the first day of every calendar month during the Lease Term. 6. "Percentage Rent'* shall mean N/A (to) ("Percentage") of Adjusted Gross Sales (as defined in the Standard Provisions) in excess of $ N/A ("Break Point") per annum. 7. "Deposit" shall mean $4,527.08. 8. "Prepaid Rent" shall mean $2,399.35 to be applied to Tenant's first monthly rent payment. 9. The "Standard Provisions", attached hereto as Exhibit 'W', are incorporated herein by this reference. Signed in the presence of: LESSOR: Signed in the presence of: Costa Center, LLC (Name)___ (Title) Date: LESSEE: Florida International Consulting Engineers Design, Inc. `0 ane) (Title) 'Ili -,I Date: A. Standard Provisions. B. Description of Demised Premises. C. Lessor's Work and Lessee's Work. D. Lease Guaranty. E. Signage Criteria R Option. to Renew. LESSEE INFORMATION: • t NAME: ,. )C r � L m HOPPING CENTER TEASE W I 1 .1 e - PARAGRAPH PAGE 1. DEMISED PREMISES, COMMENCEMENT, CONSTRUCTION AND ACCEPTANCE 1 2. RENT 1 3. DEPOSIT 3 4. N/A 3 5. COIVIMOINAREAS 4 6, PERIVIINTTED USE 5 7. MIAI NITTENNANCE ANID REPAIR 7 8, ALIERATIONS 8 9, I'IL'Ns' 9 10. STORE FRONTS ANTI) SIGNS 9 11, I;TIE.ITIES 10 12, 1 N'S U P�Nl CE, AND R4.F)ENDaTY 11 13. DAMAGE AICD OBLIGATION IO RESTORE 11 14. Exit INEN'T DOIVLA. N1 12 15, AS,9J,CTNJ,,YmN,,r.AND SLTBLET'rI24G 13 16- DEFAULTAND REMEDIES 13 17, LESSOWSIJEN 14 18, SUBORDLNIATION-1 AND ATT 'OR.N'vfl-,.NTT 16 19, TEN"ANT ESTOPPEL CERTIFICATE 17 20. N-fEWI-1/-\NTTS` ASSOCIATION AND PUBIACITY 1'7' 21. NOTICES 17 22. SURRENDER 18 23. HOLDING OVER 18 24. BROKER'S FEE 18 25. LESSOR'S RIGHTS 19 26. NON -COMPETITION 19 27. RELOCATION 19 28. PROPORTIONATE SHARE 19 29. GENERAL PROVISIONS 19 1. DEMISED PREMISES. COMMENCEMENT, CON, ACCEPTANCE. 1.1 LESSOR owns or controls the land shown on EXhibit `B" to the Lease, together with the proposed buildings and improvements depicted thereon. The Demised Premises shall include only the appurtenances specifically granted in the Lease, LESSOR specifically excepting and reserving for itself the roof, the air space above the roof the space below the floor, the exterior portions of the Demised Premises (other than the store front), and the right to install, maintain, use, repair and replace pipes, duct work, conduits, utility lines and wires in the Demised Premises. LESSOR shall not unreasonably interfere with the normal business operations of LESSEE when performing said work. LESSOR further reserves the right at anytime to relocate the buildings, automobile parking areas and other Common Arm; to change the number of buildings, buildings' dimensions, the number of floors in any of the buildings, store dimensions, Common Areas, the identity and type of other stores and tenancies; to construct other buildings or improvements in the Shopping Center; to construct double -deck or elevated parking facilities; and to increase or decrease the size and scope of the Shopping Center; provided only that the general location and size of the Deinised Premises, reasonable access to the Demised Premises and the parking facilities shall not be materially impaired. 1.2 LESSOR shall deliver the Demiged Premises to LESSEE clean and free of debris (unless LESSEE is already in possession). Except as otherwise provided in the Lease, LESSEE hereby accepts the Demised Premises in their condition existing as of the Commencement Date or the date that LESSEE takes possession of the Demised Premises, whichever is earlier, absolutely and without exception, subject to all applicable zoning, municipal, county and state laws, ordinances and regulations governing and regulating the use of the Demised Premises, and any covenants or restrictions of record, and accepts the Lease subject thereto and to all matters -disclosed thereby and by any Exhibits attached hereto. LESSEE acknowledges that neither LESSOR nor LESSOR'S agent has made any representation or warranty as to the, present or future suitability of the Demised Premises for the conduct of LESSEE'S business. LESSOR'S liability with respect to latent defects in construction shall not extend beyond one (1) year from the date the Demised Premises are ready for occupancy, whether or not such defects are discovered within said period. RENT. 2.1 LESSEE shall pay to LESSOR the Minimum Rent, payable in advance and without demand, in equal monthly installments on the first day of each month of the Lease Term, If the Lease Term should commence on a day other than the first day of the month (the "Commencement Date"), LESSEE shall pay Minimum Rent equal to one -thirtieth (1/30th) of the monthly Minimum Rent multiplied by the number of rental days in such fractional month. The first such monthly installment of Minimum Rent shall be due and payable on or before the Commencement Date as required by LESSOR. 2.2 The covenant of LESSEE to pay rent (being Minimum Rent, <Operating Costs and all other sums due hereunder) is separate and distinct from other covenants, and LESSEE shall have no right of setoff or reduction in the payment of rent for any reason. Payments required hereunder shall be in United States currency. 3. DEPOSIT. Concurrently with the execution of the Lease, LESSEE shall deliver to LESSOR the Deposit as security for LESSEE'S faithful performance of LESSEE'S obligations. If LESSEE should fail to pay rent or other charges duehereunder, or otherwise should default with, respect to any provisions of the Lease, LESSOR may use, apply or retain all or any portion of the Deposit for the payment of any rent or other charge or for the payment of any other sum to which LESSOR may become obligated by reason of LESSEE'S default, or to compensate LESSOR for any, loss or damage which LESSOR may suffer thereby. If LESSOR so uses or applies all or any portion of said Deposit, LESSEE shall within ten (10) days after written demand therefore deposit cash with LESSOR in an amount sufficient to restore the Deposit to the full amount hereinabove stated, and LESSEE'S failure to do so shall be a material breach ofthe Lease. LESSOR shall not be required to keep the Deposit separate from its general accounts nor to cause interest to accrue thereon. If LESSEE should perform all of LESSEE'S obligations hereunder, the Deposit, or so much thereof as shall not theretofore have been applied by LESSOR, shall be returned, without payment of interest or other increment for its use, to LESSEE (or, at LESSOR'S option, to the last assignee or subtenant, if any of LESSEE'S interest hereunder shall have been transferred) at the expiration of the Lease Term and after LESSEE shall have vacated the Demised Premises. No trust relationship is createdherein between LESSOR and LESSEE ve th respect to the Deposit, Tire I eposit is nat an advance payment of rent and is not am.easure of LESSOR'S loss or danueigges, a, l 4:3 LESSEE shall pay an and all sales tax, tax on ren ls, and any other charges, tars and'cr im,osit ons nars in, existence or hereafter imposed by any govrei°iimentat authority against the Lease, the execution hereof and/or the-Mitiimum.Reia, Percentage RIe t and any other changes payable by LESSEE. COa`AMONO AIyE -ND OPIT-ATIi: OSIS, 5.1 The term "Common area" shall mean that part of tlae Shopping Center designated by L SSCI frorn t?rne to brine for the common use of all tenants, including, arnhcrhag other facilities, pini_-, g area, sidewalks, landscaping, water retention,. curbs, loading, areas, Priv=ate Streets and alleys, lighting facilities, ballways, malls, restrorins, and other areas and irriptrrvernerrS, provided by LESSOR for the; common use of all ierhants, all of vvhich shall be subject to Z L;SSCI 'S sale management and control. Without limiting the generality of the foregoing, I,z'S OR reserves the right to enter into, modify and, terminate casements and other agroernents pertaining tothe maintenance and -use cid the parking areas and other. Cornmon Areas: to close any and all portions of the Common Area to such extent and for such time as may, in the sole discretion of LESSOR'S counsel, be legally= .necessary to prevent a dedication the eof or the accrrtal of rights to any person or tire Public Thence; to hose temporarily, if necessary, any Irani of the gammon Area to discourage noncustorner parking, and toniake changes, additions, deletions, alteration: or im. prdv en eats in and to the Common Areas, provis:led there; shall be no unreasonable or substsartial abstraction of LESSEE'S right ol'ingress to or egress.frorn the Demised Premises. 5'2 I -ESS ;r and its employees, customers, aahtenants, licensees and. concessionaires shall have the nonexclusive rigxlrt and license to wse the CoinXT on Area as constituted from here to thus, such use to be in common v*tith LESSOR, other tenant of the Shopping Corner and other persons permitted by LIESSOR to use the same and sub'jec(t.o such reasonable miles and regulations governing use as LESSOR may front time to time prescribe, including the designation vfspecific areas -within the Shtl P g Center or in reasonable proxltr%ty thereto in whi b ante oblle owned by LESSEE, its employees, , enants, licensees and concessionaixes shrill be parked. LESSEE shall fhrrhish to LI18Sd upon request complete list oflicense nmr-bers of all automobiles operated by LESSEE, its employees, subtenants; licensees and. concessionaires, 53) LF SSOP shall o=berate, maintain and repair die Co=norn Area in such manner as LLSSOR shall in its sole discretion tleterntine. The foregoing. Subsections 5,3.1 through 5.3-10 are far definition only trr.id are not to be construed to irnpose any obligations on LESSOR - 5 -4 Not Aitthstand,,nlT the foregcri,rdg provnsions, Ope:atsng Cc&stn stall no, r'.nciuci.oa 5,4,1 dl preciat can loth r tli,,in depre,ation urs above specified),; 5.412 costs of repairing and replacing to the extent that proceeds of insurance or condemnation av cords are received therefor; and 5.x.3 costs of a capital nature (to the extent they cons tute improvements beyond the original condition or utility of the: item in question), 6. PERMITTED USE. 6.1 The Permitted Use is a material consideration to LESSOR in order that there will be maintained within.. the Shopping Center an appropriate mix of tenants to achieve the maximum gross sales for all tenants and assure the continued operation of the Shopping Center. LESSEE shall continuously use and occupy the Demised Premises for the Permitted Use and for no other use or purpose. LESSEE will not breach: exclusive use provisions in other leases for space in the Shopping Center. 6.2 LESSEE shall not abandon or vacate the Demised Premises, shall not permit; license or suffer the occupancy of any other party in the Demised Premises and shall: 6.2.1 Comply with all applicable statutes, ordinances, rules, regulations, orders, restrictions of record and requirements in effect during the term of the Lease regulating the use of the Demised Premises. 6.2.2 Keep the Demised Premises continuously and uninterruptedly open during regular business hours of no less than five (5) days per week and a minimum of forty (40) hours. 6.2.3 Keep the Demised Premises and sidewalks; service ways and loading areas adjacent to the Demised Premises neat, clean and free from dirt, rubbish, insects and pests at all times and store all trash and garbage within the Demised Premises, arranging for the regular pick up of such garbage andtrash at LESSEE'S expense. LESSEE shall store all trash and garbage within the area designated by LESSOR for such trash pick up and removal and only in receptacles of the size, design and color from time to time prescribed by LESSOR. LESSEE shall not operate an incinerator or burn trash or garbage within the Shopping Center. 6.2.4 Keep the inside and out of all glass in the windows and doors of the Demised Premises clean; maintain all the display windows in a neat, attractive condition, and all such displays shall be subjeetto the approval of LESSOR; and keep all display windows and exterior electric signs in front of the Demised Premises lighted from dusk until 10:00 P.M. every day, including Sundays and holidays. LESSEE shall not use any loudspeaker, voice -making or other sound projection device in such a manner as to be audible to anyone outside the Demised Premises, not' shall LESSEE use or display any flashing lights visible to anyone outside the Demised Premises. 6.2.5 Display no merchandise outside the Demised Premises nor in any way obstruct the sidewalks adjacent thereto; not solicit business or distribute any hand bilis or other advertising matter inthe Common Area; not permit any objectionable or unpleasant odors to emanate from the Demised Premises; nor place or permit any radio, television, loudspeaker or amplifier on the roof or outside the Demised Premises. 6.2.6 Load or unload all merchandise, supplies, fixtures, equipment and furniture and cause the collection of rubbish only through the tear service door or doors of the Demised Premises. No deliveries of any kind shall be made through the front entrance. 6.2.7 iMaintain, the decor and fixturing of the Demised Premises, the merchandise and operation of LESSEE'S business consistent with the operation of a "first-class", "high-quality"; "fashionable" store or business as those standards of operation maybe interpreted from time to time (as opposed to "general" "promotional" or "self-service" store or business). LESSEE shall operate its business at the Demised Premises in a respectable, reputable, tasteful; competent and dignified manner in order to enhance the image of the Shopping Center as a whole and its reputation as a dignified and desirable place to shop and to achieve the maximum volume of sales so that LESSOR will receive the maximum amount of Percentage Rent. The description of the standards of operation of the business conducted in the Demised Premises as "first-class", "high- quality" and "fashionable" as opposed to "general" "promotional" or "self service" is intended only as a description of the general quality of the merchandise or services LESSEE may sell and the general quality of customer service, merchandising, fixturing and decor LESSEE must maintain in the operation of the Demised Premises. The foregoing description is not intended by LESSOR and will not be enforced to affect the retail selling price of LESSEE'S merchandise or services. 6.3 LESSEE shall not use the Demised Premises, nor permit the use of the Demised Premises, for the storage, transportat on'or disposal of "hazardous" or "tox c" materials as commonly known: or otherwise defined under any law relating to environmental conditions and industrial hygiene, including, without limitation, the Resource Conversation and :Recovery .Act of 1976, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Super Fund Amendments and Reauthorization Act of 1986, the Hazardous Materials Transportation Act and the Florida Air and Water Pollution Control Act. Such materials would include, without limitation, asbestos or any substance containing asbestos, urea formaldehyde foam insulation, transformers or other equipment which contain dielectric fluid containing the group of organic compounds known as polychlorinated biphenyls, flammable explosives, radioactive materials, chemicals known to cause cancer or reproductive toxicity, pollutants, effluents, contaminants, emissions or related materials. LESSEE shall provide to LESSOR forthwith after receipt of same photocopies of all notices of violation received by it with regard to any rules, regulations or laws applicable to such materials, the commencement of any enforcement action, the service of any potentially responsible party demand letter from any private or governmental party or the loss of any operating permit by reason of the use or release of any such materials. LESSOR may enter the Demised Premises and perform any action necessary to remediate contamination or to correct any condition giving rise to any such notice of violation. 6.4 In the event LESSEE should conduct such a use within the Demised Premises which would increase the insurance premium cost or invalidate any insurance policy carried on the Shopping Center, LESSEE shall pay as additional rent, upon demand of LESSOR, any such increased premium cost due to LESSEE'S use of the Demised Premises, LESSEE shall report to LESSOR any condition it believes would affect any insurance policy carried on the Shopping Center. Further, in the event LESSEE'S use of the Demised Premises increases the cost of operating or maintaining the Shopping Center. LESSEE shall pay as additional rent, upon demand of LESSOR; such additional costs as LESSOR should reasonably require. Such additional costs would include, without limitation, increased utility and maintenance costs by reason of extended business hours. 6.5 Upon the Commencement Date, LESSEE shall open for business in the Demised Premises and shall thereafter continuously, actively and diligently operate its said business on the whole of the Demised Premises, in a high grade and reputable manner maintaining in the Demised Premises an adequate staff of employees during the hours specked herein throughout the Lease Term except. to the extent prevented from so doing by strikes, fire casualty or other causes beyond LESSEE'S control. 7. MAINTENANCE AND REPAIR. 71 LESSOR shall keep the foundation, the exterior walls (except store fronts, plate glass windows, doors, door closure devices, window and door frames, molding, locks and hardware and painting or other treatments of exterior wails) and the roof of the Demised Premises in good repair, except that LESSOR shall not be required to make any repairs occasioned by the act or negligence of LESSEE, its agents, employees, subtenants, licensees and concessionaires, which repairs shall be made by LESSEE, subject to LESSOR'S supervision. In the event that the Demised Premises should become in need of repairs required to be made by LESSOR hereunder, LESSEE shall give immediate written notice thereof to LESSOR, and LESSOR shall not be responsible in any way for the failure to make any such repairs until a reasonable time shall have elapsed after delivery of such written notice. Other than as herein provided, LESSOR shall not responsible to maintain or make any improvements or repairs of any kind in or upon the Demised Premises. T2 LESSEE shall keep and maintain in full compliance with all laws; rules and regulations (as same may be enacted or amended from time to time) and in good order; condition and repair (which shall mean replacement ifnecessary) the Demised Premises and every partthereof, except as hereinbefore provided, including, without limitation, the exterior and interior portions of all doors, door checks, security gates, windows, glass, utility facilities; plumbing and sewage facilities within the Demised Premises or under the floor slab (including free flow up to the main sewer line), fixtures, heating, air conditioning (including exterior mechanioal equipment}, exterior signs and exterior electrical equipment serving the Demised Premises and interior walls, floors and ceilings. Lessee agrees that if local laws should require an ADA bathroom then Lessee at its expense shall remodel to meet' requirements. 7.3 LESSEE, at its own cost and expense; shall enter into a regularly scheduled preventive maintenance/service contract with a maintenance contractor approved by LESSOR, for servicing all heating and air conditioning systems and equipment servicing the Demised Premises, and an executed copy of such contract shall be delivered to LESSOR. This service contract must include all services reasonlibly suggested by the equipment ent manufact r r Wthin the operationsirnaaintenance maraird and must become effective within thirty, (30) dazys after the date LF,S 1�1:<, st rati liaive taken posse,ssion of ',be I)eniised iiilses. LESSOR may, On shall not be required to, upon notice to LESSEE, elect to enter into such a maintenance/service contract on behalf of LESSEE or to perf€lull die: work its 61f arnd 7 in ell,1er c ase, II',SSEE shall pay to L ESSOR, Within tell (1 0) days after c errand the cost of such contract or work plus ten (l is°fa;} percent of the amount thereof (for LESSOR'S service and overhetul posts), Provided. Lessee provides proof of regular maintenance, if it is determin d by a Licensed Contractor that, the telt needs to be replaced, Lessee shall be responsibly for the first five hundred dollars $500,00 towards replacement and Lesser stall be responsible for the balance, ALTERATIONS. _1 LESSEE shall net nuke any alterations, additions or improvements to the Derinised Premises without the prior writtert. consent of LESSOp, except for the installation of unattached, movable trade fixtures which may be installed without drilling, outt ng or otherwise defacing the Dernised Promises, A11 alteratio s additions, a provorrients and fixtures (other than unattached, inovable. trade fixtures) which rraay he inade or installed by eltber party trpon the Demised Promises shall become the llroperty of LESSOR upon installation and shall rerrrain upon, and be surrendered with the Dernised Premises at the. termination of the Lease unless upon t:ernli atim of the T&ase ESSOR requests their :remorral, in which event LESSEE shall remove the sarin: and restore, the .mused Premises to their original condition at L SS E"S expense. Any liin)le'um, c^arpering or either floor cover zng vwrhich may be cemented or otherwo ise rzi lfro d to the f 10or of the Demised Pr noses sisal be a permanent ;fixture and shall become the proper , of LESSOR zcrithout credit or compensation to LESSEE. ,? All construot on work, dorre by LESSEE within tits;ernised Premises sial€i be performed in good and wvorkniarhikte rnaxnne r, in compliance with all governrrien al requirement i, and the rr;c uo.er is is of any contract or inortga ;e to �o#blcli LE SSOR may be a party and in such manner as to cause a minimum of interference with ether- construction in progress and with the transaction of business in the Shopping Center. I'E SEE agrees to ardee in f�, LESSOR. and hold it harnless agaiist any loss, liability or dattage resulting from such work, and LESSEE,shall, if requested. by LESSOR, furnish bored orother security satisfactory to LESSOR against any such Bass., :lability or damage. 8.3 All venting, opening, sealing, vraterproofsng or any altering of the roof shall be performed by LESS` OICS roofing contractor upon LESSOR'S approval and at LESSEE'S expense, and when cc npleted LESSEE shalt funrish to LESSOR a cartificate frozrr LESS{3WS roof ing contractor that all such alterations approvd by LESSOR have been corriplet;dinaccordance Nvith the plan, and. specifications therefor approved by 3, :SS 'k, 9. LIE IS. LESSEE shall not permit to be created nor to remain u- dischar ea any lien, encumbrance or charge arising out of any work of any contractor, mechanic, laborer or materiahnay which rn glit be or become a Iran, encunibranc e or charge ripor the Demised P emises or the Shopping Center or the brecixtte therefrom. LESSEE shall riot suffer any other Matter on: thing whereby fixe estate:, fight and interest ofT..,P;SSOR in the D raised Prernzses or lea , i Shopp g CFenter Migh be impaired, if any lien or notice of lien on account of are alleged debt of LESSEE or any notice, of`contract by a pasty engaged by LESSEE or LESSEE'S contractor to wvork in the ;Demised Premises should be filed, against the bernised Premises or me Shopping Center, LESSEE shall, Within twenty (20) days after notice of the filing tk--recf, pause ilio, sarne to be discharged of accord by payment, deposit, bond, order of court of competentjurisdiction or otherwise, IfLLSSEs] ould fail to cause such lien or notice of lien to be discharged within the period provided, LESSOR, in addition to any other rights or rernedics, may, but shall not be obligated to, discharge the same by either paying the amount clairned.to be due or by procuring the discharge of suc;li tient by deposit or by bonding proceedings. Arry atniount paid. by LESSOR and all costs and expenses, including a%torneys' fees, incurred by LESSOR in. connection therevvith, together with interest thereon at .the naebmini rate perno ted by law or fifteen (i5%) percent per m, whichever is lower, it, r n tele date o.fpayment orinc-ur°r: xg ofthe cost and expense, shall be paid by L S.SEE to LESSOR on demand. 1"IIS• [O"FERLST OF LESSOR Clai THE DEMISED PREMISES SHALL NOT BE SUBJECT TO LIENS FOR IMPROVEINIENTS IMADE BY OR FOR TLIE AC;C O !T OF LESSEE, 10. STOREFRONTS FRC` NT,S AND SIGHTS, LESSEE shall -thin inneiy (90) days ftorn lease execarion insta d a. storefront sign in accordance with the sin en teria set forth in, this lease. LESSEE small not, without LESSOR'S prior written consent.(a) make any changes to or paint the store front; (b) install any exterior lighting, decorations or paha zgs; or (c) erect or install any signs, windocr or dc?crlettering: place cards, decorationsor advertising media of any type which can be V leveed from the exterior of the Demised Promises, accepting only dignified displays of a customary type for its display windows riot affixed to the, whtdows, An slats, decorations and advertising media, shall confrem in all respects to the sign criteria established and/or revised by LESSOR for the Shopping ,enter from time to time in the exercise of its sole discretion. All expenses incurred with regard to the design, construction and installation of LESSEE'S signs shall be costs of LESSEE 'irtcludin , without Hin tation, professional lees and pe r 't fees. LF: SII E shall use a sign comp any designated. by LESSOR., LESSEE shall. mandain all signsm. good condition and in proper operating under, All signs arrWor sign cabinets shall become alae property of)LESSOR at the termination ofthe Lease or upon vacation of the Derrrised l'r a rnis; s. 11. UTILITIES. IJ LESSEE shall contract, in its own name and shall pay the charge before delinquency, for ail utility senices rendered or furnished to the iiornised promises, includirig heat„ water, gas, electricity, fire protection, trash removal, steer rer t.al, sewage treatment tment facilities, utility hool&ups and the, like, together with all taxes or oilier charges `levied on such 'utr.ities. Further, LESSEE shall pay to LFSSC' R upa ra derraand its pro rata share of miliy iinpact fees already paid by LE,SSOR based on the; formula applied by the applicable utility comparry, LESSCYR may if it so elects: faamish one or more utility services to LESSEE, arid in such event LESSEE shall purchase the use of such services as are teirdered by Ll~`St;a ants shall pay on derriand as additional rent fee metes established therefore by LESSOR, which rates shall not exceed the, testes which would be charged for the sarrrae service if fur fished directly by any public utility corporation or goverriTnental agency in the area supplying the Name: or similar seiner, plus an additional, fifteen (Id1W) percent (fear LESSOR.",s s=ervice and overhead costs). In no event shall LESSOR, be liable for the grtaliry, quantity, failure or interruption of such services to the Demised Prenrises. This obligation of LESSEE shall survive termination of the Lease. I i.2 LES SOIR mars, � ddi no Lice to LESSEE, or without notice in, the event of an emergency, taut off and. discontinue: gas, water, electricity and any or all trdlixies whenever :shell discontinuance would be accessary to snake repairs or alter atiotts. NO, such action by LESSOR shall be construed as air eviction or dMurbarce of possession or as an election by LESSOR To teriniinate the Lease, nor shall LESSOR be in arae° way responsible or liable tinder soon action, l?. INSURANCE AND INDEMNITY. 121.1 LESSEE shall, at LESSEES experts, obtain and keep in force during the Lease Testi as policy of comprehensive general liability insurance, together with a broad form comprehensive general liability exadorsernent, covenng aray and all clairras for injuries to persons in err upon the DUrmsed -'reprises, including all d.aznages frerrra signs, Mass, w4nings, fixtures or other rapsurtenanc no -vv or :hereafter erected on the Demised Premises, and insuring the indemnity provision as set forth in this; Paragraph. Such insurance shall be in an arnount not less than $1,000,0llt ,00 for injury to one person in one accident, occurrence or casualty and not less than $1,000,000,00 for injuries to more than, one parson in ore ac,cidmt, occurrence or casualty, or, in lieu of the foregoing, a combined single limit of $1,000,000.00. Tits l"niiis of said insurance shall not, however, limit the liability, of LESSEE. E. Not more e frequen ly than dads three'(-' ) years, if, in the reasonable opinion of LESSOR, the mount of liability insurancerequired hereunder should not be adequate, L `SEE shall increase said insurance coverage, as retphred by LESSOR, 12—LESSEE shall, at L.FSS p,'S expense, obtain an.d keep in force during the Lease'Ferni apolicy or policies of property damage liability insurance, together wish broad forin all peril coverage and plate glass insurance for the fail replacerrrent valueof LESSEE'S improvements and property, including, but nor linrited to, inn/eratoy, trade fxxtures urrushings acid other personal .Property, 19-1 I 1 SSFI" shall indemnify, and hold laannIess LESSOR train and against all claims, loss, cost, daanage or expense arishrgs from (a) LESS 'S use of the Dernised Promises or from the conduct of LESSEE'S business or from any activity, work or things done, permitted or suffered by LESSEE in or about the Demised Premises or elsewhere, (b) the utilities located within or under the Demised Premises causing injury to any persons or property whomsoever or whatsoever, and (c) any act or omission of LESSEE, its agents, contractors, employees, invitees, licensees, subtenants and guests. LESSEE shall Rifther indemnify and hold harmless LESSOR from and against all costs, attorneys' fees, expenses and liabilities incurred in the defense of any such claim or any action or proceeding brought thereon. 12.4 LESSOR shall not be liable for injury to LESSEE'S business or any loss of income therefrom or for damage to the goods, wares, merchandise or other property of, nor to the person of LESSEE, LESSEE'S agents, contractors, employees, invitees, licensees, subtenants and guests, or any other person in or about the Demised Premi'ses, whether the said damage or injury results from a condition arising upon the Demised Premises or upon other portions of the building of which the Demised Premises are a part, or from other sources or places; and regardless of whether the cause of such damage or injury or the means of repairing same is inaccessible to LESSEE. LESSOR shall not be liable for any damages arising from the act or neglect of any other tenant of the Shopping Center. 12.5 LESSEE hereby waives any and all rights of recovery against LESSOR, or against the officers, employees, agents and representatives of LESSOR, for loss of or damage to LESSEE or its property or the property of others under its control to the extent that such loss or dainagge, is insured against -under any insurance policy in force at the time of such loss or damages. 12.6 Any insurance policies required hereunder shall name LESSOR and, in addition, the holder of a first mortgage on the Shopping Center or a ground lessor thereof, if requested to do so by LESSOR, as additional insureds as their interests may appear. Such insurance policies may not be modified or terminated Mthout thirty (30) days' prior written notice to LESSOR - Insurance required hereunder shall be issued by reputable and independent insurers permitted to do business in the State of Florida and rated in Best" s Insurance Guide, or any successor thereto (or, if there be none, anorganization having a national reputation) as having a general policyholder rating of "A" and a financial rating of at least "l 3". Such policies or duly executed certificates of insurance, reflecting all the requirements of this Paragraph, shall be promptly delivered to LESSOR and renewals thereof as requited shall be delivered to LESSOR at least thirty (30) days prior to the expiration of the respective policies. 13. DAMAGE AND OBLIGATION TO RESTORE. 131 LESSEE shall give immediate written notice to LESSOR of any damage caused to the Demised Premises by fire or other casualty. 13.2 If the Demised Premises should (a) be damaged by any uninsured casualty or (b) be damaged to an extent in excess of fifty (50%) percent of the cost of replacement thereof, LESSOR may elect either to terminate the Lease or to proceed to rebuild and repair the Demised Premises. Should LESSOR elect to terminate the Lease, it shalt all give written notice of such election to LESSEE withiii ninety (90) days after the occurrence of such casualty. 13.3 Provided LESSEE has not exercised its renewal rights and if the Demised Premises should be partially damaged during the last twelve (12) months of the Lease. LESSOR may elect to terminate the Lease as of the date of occurrence of such damage by giving written notice to LESSEE within ninety (90) days after the date of occurrence of such damage. 13A Except as otherwise provided herein, in the event the Demised Premises should be damaged by fire or other casualty insurable under standard fire and extended coverage insurance, LESSOR shall proceed with reasonable diligence to rebuild and repair the Demised Premises. LESSOR'S obligation to rebuild and repair shall be limited to restoring the Demised Premises to substantially the condition in which same existed prior to the casualty, shall be limited to the extent of the insurance proceeds available to LESSOR for such restoration and, further, shall exclude any obligation with regard to the personal property and trade fixtures of LESSEE. LESSEE agrees that promptly upon completion of such work by LESSOR, it will proceed with reasonable diligence to restore the remainder of the Demised Premises, including, but not limited to, the repair or restoration of signs, fixtures and equipment During any period of reconstruction or repair of the Demised Premises, LESSEE shall continue the operation of its business within the Demised Premises to the extent practicable. 13.5 In the event LESSOR should elect to restore the Demised Premises and LESSEE should be deprived of the occupancy and use of a portion of the Demised Premises, Minimum Rent shall be equitably apportioned according to the area of the Demised Premises which is unusable by LESSEE, until such -time as LESSOR shall have completed its restoration as provided herein. In the event of total destruction of the Demised Premises, LESSEE'S rent shall completely abate from the date of such destruction. 13.6 In the event 75% ofthe Shopping Center should be damaged to such an extent that LESSOR, in its sole discretion, should elect to discontinue operation of the Shopping Center, LESSOR may cancel the Lease by giving written notice to LESSEE, and the Lease shall terminate and become null and void ninety (90) days after said notice. 14. EMINENT DOMAIN. 14.1 If any part of the Shopping Center should be permanently or temporarily taken, condemned or transferred by agreement. in lieu of condemnation for any public or quasi -public use or purpose by any competent authority, whether or not the Lease shall be terminated, the entire compensation award therefor, both leasehold and reversion, shall be the property of LESSOR without any deduction therefrom for any present or fixture estate of LESSEE, and LESSEE hereby assigns to LESSOR all its right, title and interest to any such award. LESSEE shall execute all documents required to evidence such result. 142 If the entire Demised Premises should be permanently taken, condemned or transferred as aforesaid, the Lease shall terminate as of the time possession thereof vests in the condemning authority. If a portion of the Demised Premises should be permanently taken, condemned or transferred as aforesaid, LESSOR may elect to terminate the Lease or, at its own expense, to repair and restore the portion not affected by the taking, in which latter event the Minimirm Rent and Break Point shall be reduced in proportion to the area taken, effective at the time possession vests in the condemning authority. If the Demised Premises or any part thereof should be temporarily taken, condemned or transferred as aforesaid, Minimum Rent shall be abated during the period of such temporary taking by the amount LESSOR receives from the condemning authority to compensate it for the use of the Dernised Premises. 14.3 Ifthe Common Area or any part thereof should be permanently ortPinporarily taken, condemned or transferred as aforesaid, whether or not the Lease shall be terminated, the entire compensation therefor, both leasehold and reversion, shall be the property of LESSOR without any deduction therefrom for any present or future estate of LESSEE and LESSEE hereby assigns to LESSOR all its right, title and interest to any such award, LESSEE shall execute all documents required to evidence such result- In the event any portion of the Common Area should be taken to such an extent that LESSOR, in its sole discretion, should elect to discontinue operation of the Shopping Center, LESSOR may terminate the Lease. 15. ASSIGNMENT AND SUBLETTING. 15.1 The idefitity and financial standing of LESSEE is a material consideration of LESSOR in entering into, the Lease. LESSEE shall not voluntarily, involuntarily or by operation of law assign, sell, mortgage, pledge or in any manner transfer the Lease or any estate or interest therein or sublet the Demised Premises or any part thereof, or grant any license, concession or other right to occupy any portion of the Demised Premises without the prior written consent of LESSOR, which consent LESSOR may grant or withhold in its absolute discretion. Consent by LESSOR to one or more, assignments or sublettings shall not operate as a waiver of LESSOR'S rights as to any subsequent assignments and subletting. Notwithstanding any assignment or subletting, LESSEE and any guarantor of LESSEE'S obligations under the Lease shall at all times remain fully responsible and liable for compliance with all of the obligations of LESSEE, including the payment of rent. 15.2 In the event of the transfer and assignment by LESSOR of its interest in the Lease and in the building containing the Demised Premises, LESSOR shall thereby be released from any further obligations, and LESSEE agrees to look solely to such successor in interest for performance of such obligations. 15.3 If LESSEE is a corporation, any transfer of this Lease from LESSEE by merger, consolidation or liquidation, or any change in ownership or power to vote of a majority of its outstanding voting stock from the owners of such stock or those controlling the power to vote of such stock as of the date of the Lease, shall constitute an assignment for the purpose of the Lease. 16, DEFAULT ASL? REMEDIES. 16.1 The occurrence of any one or more of the following events shall constitute a material default and breach of the Lease by LESSEE: 16. 1.1 The vacating or abandonment of the Dernised Premises. 16.1.2 The failure by LESSEE to make payment oftent or any otherpayment required to be made by LESSEE hereunder, as and when due, where such failure shall continue for a period of three (3) days after written notice thereof from LESSOR to LESSEE. 16.1.3 The failure by LESSEE to observe or perform any of the covenants, conditions or provisions to be observed or performed by LESSEE, other than described in Paragraphs 16.1.1 and 16.1.2 above, where such failure shall continue for aperiod often (10) days after written notice thereof from LESSOR to LESSEE; provided, however, that ifthe nature of LESSEE'S default is such that more than ten (10) days are reasonably required for its cure, LESSEE shall notbe deemed to be in default if LESSEE commences such cure within said ten-day period and thereafter diligently pursues such cure to completion. 16.1 A If LESSEE or any guarantor should commence, in any court pursuant to any statute either of the United States, or of any State, an insolvency or bankruptcy proceeding (including, without limitation, a proceeding for liquidation, reorganization or for adjustment of debts of an individual with regular income), or if such a proceeding is commenced against LESSEE or any said guarantor and either an order for relief is entered against such party or such party fails to secure a discharge of the proceeding within thirty (30) days of the filing thereof, or if LESSEE or any said guarantor becomes insolvent or is unable or admits in writing its inability to pay its debts as they become due, or makes an assignment for the benefit of creditors or petitions for or enters into an arrangement with its creditors or a custodian is appointed or takes possession of LESSEES or any said guarantor's property, whether or not ajudicial proceeding is instituted in connection with such arrangement or in connection with the appointment of such custodian. 16.1.5 The discovery by LESSOR that any financial statement given to LESSOR by LESSEE, any assignee of LESSEE, any subtenant of LESSEE, any successor in interest of LESSEE or any guarantor of LESSEE'S obligations, and any of them, is materially false. 16.2 In the event of any default or breach by LESSEE, LESSOR may after the applicable cure period thereafter, and without limiting LESSOR in the exercise of any right or remedy which LESSOR may have by reason of such default or breach: 16.2.1 Declare the entire rent for the balance of the Lease Term, or any part thereof, due and payable forthwith, and bring an action for the recovery thereof. 16.2.2 Terminate LESSEE'S right to possession of the Demised Premises by any lawful means and retake possession thereof for the account ofLESSOR, in which event LESSEE shall immediately surrender possession ofthe Demised Premises to LESSOR and all further liability under the Lease on the part of LESSEE and LESSOR shall terminate. Notwithstanding the foregoing, LESSEE shall be liable for and shall pay LESSOR the sum of all rental and addiiional rent and other indebtedness accrued to the date of such termination plus, as damages, an amount equal to the difference between (i) the total rental (Minimum Rent and Percentage Rent, computed as stated herein) plus LESSEE'S Proportionate Share of Operating Costs and Taxes forthe remaining portion of the Lease Term (had such term not been terminated by LESSOR prior to the date of expiration as provided herein), and (ii) the then present value of the then fair rental value of the Demised Premises for such period using such discount rates as LESSOR should deem appropriate. 16.2.3 Maintain LESSEE'S right to possession, in which event the Lease shall continue in effect whether or not LESSEE shall have abandoned the Demised Premises. In such event, LESSOR shall be entitled to relet the Demised Premises and to enforce all of LESSOR'S rights and remedies under the Lease, including the, -right to recover the rent as it becomes due. 16.2.4 Pursue any other remedy now or hereafter available to LESSOR under the laws and judicial decisions of the State of Florida. 16.2.5 In the event LESSEE should be obligated to pay Percentage Rent, the Percentage Rent for which LESSEE shall remain prospectively liable shall be a sum equal to the greatest amount of Percentage Rent paid by LESSEE for any calendar year during the Lease Term multiplied by the number of years remaining in the Lease Term. at the time of termination. 16.3 In the event of a proceeding involving LESSEE under the Bankruptcy Code, I I U:S.C.§101 et seq., if the Lease should be assumed by LESSEE'S trustee in bankruptcy (after he has cured all existing defaults; compensated LESSOR for any loss resulting therefrom and provided adequate assurance of future performance), then the Lease may not be assigned by the trustee to a third parry, unless such. party (a) executes and delivers to LESSOR an agreement in recordable form whereby such party assumes and agrees with LESSOR to discharge all obligations of LESSEE under the Lease, (b) has a net worth and operating experience at least comparable to that possessed by LESSEE and any guarantor hereof as of the time of execution of the Lease; and (c) grants to LESSOR, to secure the performance of such party's obligations under the Lease, a security interest in such party's merchandise, inventory, personal property, fixtures, furnishings, and accounts receivable (and in the proceeds of all of the foregoing) with respect to its operations in the Demised Premises, and in connection therewith, such party shall execute such security agreements, financing statements and other documents (the forms of which are to be prepared by LESSOR) as are necessary to perfect such lien. If LESSOR should not be permitted to terminate the Lease because of the provisions of the Bankruptcy Code, LESSEE as a debtor-in-possession or any trustee for LESSEE agrees promptly, within no more than fifteen (15) days after request by LESSOR to the Bankruptcy Court, to assume or reject the Lease, and LESSEE on behalf of itself and any trustee agrees not to seek or request any extension or adjournment of any application to assume or reject the Lease by LESSOR with such Court. 16.4 If LESSOR should exercise any of its remedies hereunder, LESSEE shall be liable for and shall pay to LESSOR, within ten (10) days after demand therefor, the costs of removing and storing LESSEE'S or other occupant's property; the costs of repairing, altering, remodeling or otherwise putting the Demised Premises into condition acceptable to a new tenant or tenants; real estate commissions actuallypaid; that portion of the leasing commission paid by LESSOR applicable to the unexpired term of the Lease, if applicable; and all reasonable expenses incurred by LESSOR; including attorneys' fees. 16.5 If the Lease should be terminated, or the Lease Tenn should expire; LESSOR shall have time immediate right thereafter to re-enter the Demised Premises after 24hrs notice to LESSEE, and to remove all persons and, property therefrom. Such property maybe stored in a public warehouse or elsewhere at the cost of, and for the account of LESSEE, all without service of notice or resort to legal process (all of which LESSEE expressly waives). In such event, LESSOR shall not be deemed guilty of trespass or become liable for any loss or damage which may be occasioned thereby. 16.6 The rights and remedies ,granted herein to LESSOR are distinct, separate and cumulative remedies, and the exercise of any of them shall not be deemed to exclude LESSOR'S right to exercise any or all of the othexs. All charges payable by LESSEE under the terms of the Lease shall be deemed rent for the purpose of LESSOR exercising its remedies. 16.7 No waiver of any covenant or condition or of the breach of any covenant or condition of the Lease shall be taken to constitute a waiver of any subsequent breach of such covenant or condition nor to justify or authorize the nonobservance on any other occasion of the same or of any other covenant or condition hereof, nor shall the acceptance of rent by LESSOR at anytime when LESSEE is in default under any covenant or condition hereofbe construed as a waiver of such default or of LESSOR'S right to terminate the Lease on account of such default, nor shall any waiver or indulgence granted by LESSOR to LESSEE be taken as an estoppel against LESSOR, it being expressly understood that if at any time LESSEE should be in default in any of its covenants or conditions hereunder, an acceptance by LESSOR of rent during the continuance of such default or the failure on the part of LESSOR promptly to avail itself of such other rights or remedies as LESSOR may have shall not be construed as a waiver of such default, but LESSOR may at any time thereafter, if such default continues, terminate the Lease on account of such default. 16.5 The parties hereby waive trial by jury in any proceeding brought by either of the parties hereto against the other arising out of or in any way connected with the Lease, the 10 relationship of LESSOR and LESSEE, LESSEE'S use or occupancy of the Demised Premises, and/or any claim for injury or damage. LESSEE waives all claims for damages by reason of LESSOR'S exercising its Tight to reenter the Demised Premises and take possession of the property located therein, or damages by reason of any distress warrant, forcible detainer proceedings, sequestration proceedings or other legal process. 16.9 LESSOR shall not be in default unless LESSOR fails to perform obligations required of LES $OR within a reasonable time, but in no event later than thirty (3 0) days after written notice by LESSEE to LESSOR and to the holder of any first mortgage covering the Demised Premises whose name and address shall have theretofore been ft:Tmished to LESSEE in writing, specifying wherein LESSOR has failed to perform such obligations; provided, however, that if the nature of LESSOR'S obligations is such thatmoro than thirty (30) days are required for performance, LESSOR shall not be in default if LESSOR commences performance within such thirty -day period and thereafter diligently prosecutes the same to completion. 16.10 LESSEE hereby acknowledges that late payment by LESSEE to LESSOR of rent and other sums due, hereunder will cause LESSOR to incur costs not contemplated by the Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges and late charges which may be imposed on LESSOR by the terms of any mortgage covering the Demised Premises. Accordingly, if any installment of rent or any other sum due from LESSEE shall not be received by LESSOR or LESSOR'S designee within three (3) days after such amount shall be due, LESSEE shall pay to LESSOR a late charge equal to six (6%) percent of such overdue amount. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs LESSOR will incur by reason of late payment by LESSEE. Acceptance of such late charge by LESSOR shall in no event constitute a waiver of LESSEE'S default with respect to such overdue amount, nor prevent LESSOR Froin exercising any of the other rights and remedies granted hereunder. In the event any check tendered by LESSEE should not be honored for any reason, LESSEE shall pay to LESSOR immediately on demand a service fee of fifty ($50.00) Dollars. 17. LESSOR'S LIEN, TO SECURE THE PAYMENT OF ALL RE'N'T AND OTHER SUMS OF MONEY DUE AND TO BECOME DUE AND THE FAITHFUL PERFORMANCE OF THE LEASE BY LESSEE, LESSEE HEREBY GRANTS TO LESSOR AN EXPRESS FIRST AND PRIOR LIEN AND SECURITY INTEREST ON ALL PROPERTY (INCLUDING FIXTURES. EQUIPMENT, CHATTELS AND MERCHANDISE) WHICH MAY BE PLACED IN THE DEMISED PREMISES, AND ALSO UPON ALL PROCEEDS OF ANYNSURANCE WHICH MAY ACCRUE TO LESSEE BY REASON OF DESTRUCTION OF OR DAMAGE TO ANY SUCH PROPERTY. SUCH PROPERTY SHALL NOT BE REMOVED THEREFROM WITHOUT THE WRITTEN CONSENT OF LESSOR UNTIL ALL ARREARAGES IN RENT AND OTHER SUMS OF MONEY THEN DUE TO LESSOR HEREUNDER SHALL FIRST HAVE BEEN PAID. THUS LIEN AND SECURITY INTEREST IS GIVEN IN ADDITION TO THE LESSOR'S STATUTORY LIEN AND SHALL BE CUMULATIVE THERETO. CONCURRENTLY WITH THE EXECUTION OF THE LEASE (OR LATER IF REQUESTED BY LESSOR AT ITS DISCRETION), LESSEE SHALL EXECUTE AND DELIVER TO LESSOR UNIFORM COMMERCIAL CODE FINANCING STATEMENTS IN SUFFICIENT FORM SO THAT WHEN PROPERLY FILED, THE SECURITY INTEREST HEREBY GIVEN SHALL BE PERFECTED. THE LIEN AND SECURITY INTEREST CREATED HEREBY SHALL BE TERMINATED WHEN ALL OF THE RENT AND OTHER SUMS OF MONEY BECOMING DUE DURING THE LEASE TERM SHALL HAVE BEEN PAID IN FULL. NK61003111 18.1 The Lease is subordinate to any ground lease, mortgage or any other hypothecation for security now or hereafter placed upon the real property of which the Demised Premises are a part and to any and all advances made on the security thereof and to all renewals, modifications, consolidations, replacements and extensions thereof. This clause and the subordination set forth herein are self operative, and no further instrument of subordination shall be required for any purpose. If any mortgagee or ground lessor should elect to have the Lease prior to the lien of its mortgage or ground lease, and should give written notice thereof to LESSEE, the Lease shall be deemed prior to such mortgage or ground lease, whether the Lease is dated prior or subsequent to the date of said mortgage or ground lease. 18.2 LESSEE agrees to execute any documents required to evidence such 11 subordination or to make he Lease prior to the lion of any mortgage or growid lease, as the case may be;, and failing to do so, within ten (IBJ) days after written demand„ does hereby male, constituto and irrevocably appoint L SSOR yrs LE SSEE'S attorney in fact and in LESSEE'S name., place and steed, ed, to do so. 1.8.3 1.lrson request of LESSOR, USSEE shall, in the event any proceedings are brought for the; fbTecloa io of, or in The event of exec=raise of the power of sale under any mortgage -made by LESSOR coveriragthe De?rdised Premises, att€srn to the purchaser upon any, such foreclosure or sae and re;cogxiize such -purchaser as LESSOR under the lease. 18A IL in conn ectioti. with obtaftrai-finaincing for the real property of which the Derry sed' remises are a part; a ban ing, instnanc,e or other recognized institutional lender should request reasonable noidatteations its the. Lease as a condition to such financing, LESSEE will not as nreasonably withhold, delay or defer its consent thereto, provided that such modifications do not increase the obligations ofEESSEE� hereunder, or adversely affect the leaseh€ild interest hereby (,tested or LESSEE'S use acrd enjoytn nt of the Denis d promises, 19. TENANT RS'1 OPPELIdRT p'I AIZE, 199 l ESS'Ej- shall at any time upon riot less than ten (10) days' prior 'w:ritten notice fiorn LESSOR, execute, tacknir 4e;dge and deliver to LESSOR a staternent in writing: (i) certifyin., that the Lease~ is unmodified and in fail farce and effect (or, if modified, stating the nature ofsucus modification and certifying that tine Lease, as sea modified is in hill force and eff°ec) and the date to which tete rent and €miter charges ruts, paid in tadvm- ce, if ashy= (ii) acknowledging that there are noi, to LESSEE'S E'S knovidedge, any uncured defaults on the part of LESSOR, or specifying such derau:lts} if any are claimed; and (iii) otherwise be in a forma reasonably acceptable to LESSON. Any star;}, statement may be conclusively relied upon by °:tray prospective purchaser or existing or p,rospective encurnbrartcerofthe Demised Premises. 19.2 At LESSOR'S option, :i.Lsg+SEE'S faih:res to de iver suCh sratemestst within such thne shall be a i natenA- breach of -the 'Lease or, at LFSSOWS option, sl-rall be conclusive upon LESSEE that (i) the Lease is in kill fierce and effect, withouwt modification except as may be represented by .€„ESSO , {ii) there are no uncured defaults in LESSOR'S performance and (iii) net more °that, one, (1) nionth's rent has been paid in advance. 193 'If LESSOR desires to finance, refinance or sell the Ifernised Lareirtises, or any Masi thereof, LESSEM he=reby agrees to deliver to any lender or purchaser designated by LESSO such financial statements of." L, SSEE ars may be reasonably regnired by such lender or purchaser. All such, fitrtxnciall statements shall be received by 1,ESSC'l . and such lender or purchaser in c>o rd nce and shall be used only for the purposes herein sett forth, D. MERC f-7 , I S' A.Ssoci,�ynoN AND PUBLi i"f '. LESSIEE agrees to include the, name of the Shopping Center in any inedi rn of ad erusl or publicity that the Tenant shall utilize in the promotion of its business. 2L NOTICES. 21.1 Any notice, request, demand, approval, consent or other conrrnunication which LESSOR or LESSEE may be required orpernuttedto give to the other batty shall ben writing and shall be rnalled by cerofiedinail,return receipt requested, or by facsimile at rho address specified in the Lease, or to suds outer addre=ss as either party shall have designer €d by written nodes,, to the €°then 'Nottvithstar d rig The foregoing, LESSO may l=ive notice toLESSEE ESSE.E by personal delivery to the Detrriaecl Premises, Notice shall be deterred given thre=e (3) days afte=r saute an all have been deposited in air official United States Post: Office, postage prepaid, or when hand -delivered, as the case may be. 21.2 1f"the holder of record of mortgages or a around lessor covering, the Dens d Premises should Inn e given prior notice to 1.,ESSEIS that it is the holders- of suchmortgage or is a ground lessor and such notice includes the acidness to which notices are to be sent, LESS:'M shall give to said party notice simultaneously with any notice given to LESSOR ro correct ,arm alleged default of LE.S`t"J11 herewider. Sold party sly li ha.-�-e the; right, within thirty (30) days aal;r receipt of said notice, to correct or remedy such default before LESSEE may take any action under the Lease by reason of such default; provided, however, LESSEE may take no action under the Lease by reason of such default if such party shall have commenced, during said thirty -day period, to remedy the alleged default and continues thereafter to use its diligence to remedy the alleged default. Any -notice of default given to LESSOR shall be null and void unless simultaneous notice has been given to said mortgagee or ground lessor. 22, SURRENDER, Upon the expiration or termination of the Lease, LESSEE shall deliver and surrender to LESSOR the Demised Premises in a safe condition and reasonably good order and repair, and shall deliver all keys and combinations to locks, safes and vaults to LESSOR. Before surrendering the Demised Premises, LESSEE shall remove all its unattached personal property, including trade fixtures, alterations, additions and decorations, and shall repair any damage caused thereby. All floor coverings, window, wall and ceiling treatments shall not be removed from the Demised Premises. If LESSEE should fail to restore the Demised Premises as aforesaid or if LESSEE shouldfail to repair any damage caused by the removal of LESSEE'S property from the Demised Premises, LESSOR may restore the Dernised Premises, and all such costs incurred thereby shall be an expense of LESSEE. LESSEE'S obligation to perform this provision shall survive the end of the Lease Term. If LESSEE should fail to remove its property upon the expiration of the Lease, said property shall be deemed abandoned and shall become the property of LESSOR. 23. HOLDING OVER. If LESSEE should refuse to give up possession of all or any part of the Demised Premises after the expiration or termination of the Lease Tenn, LESSOR, its agent attorney or legal representative, may demand 200% of the current monthly rent, and may recover the same as provided by law at the expiration of every month, or in the same proportion for a longer or shorter time. 24. BROKER'S FEE. LESSOR and LESSEE each wan -ant to the other that no real estate broker or agent, other than Merin Hunter Codman, Inc. has been used or consulted in connection with the lease of the Demised Premises, Each covenants and agrees to defend, indemnify and save the other harmless from and against any actions, damages, real estate commissions, fees, costs and/or expenses (including reasonable attorneys' fees), resulting or arising from any commissions, fees, costs and/or expenses due to any real estate broker or agent because of the lease of the Demised Premises and the execution and delivery of the Lease, due to the acts of the indemnifying party. 25. LESSOR'S RIGHTS. 25.1 If LESSEE should fail to perform any maintenance or repairs required of it hereunder, including, without linutation, the maintenance of its sips, within ten (10) days after written notice delivered to it by LESSOR (or within such shorter period as LESSOR should require in the event of an emergency, with or without notice), LESSOR may, at its option, make such repairs without liability to LESSEE for any loss or damage which may result to its stock or business by reason of such repairs, and LESSEE shall pay to LESSOR within ten (10) days after demand the cost of such repairs plus ten (10%) percent of the amount thereof (for LESSOR'S service and overhead costs). 25.2 LESSOR and LESSOR'S agents shall have the right to enter upon the Demised Premises at reasonable times for the purposes of inspecting same, showing the same to prospective purchasers, lenders, or lessees, and making such alterations, repairs, improvements or additions to the Demised Premises or to the building of which they are a part as LESSOR may deem necessary and desirable. LESSOR may at any time place on or about the Demised Premises any ordinary 'Tor Sale" signs and LESSOR may at any time during the last one hundred twenty (120) days of the Lease Term place on or about the Demised Premises any ordinary "For Lease" signs, all without rebate of rent or liability to LESSEE. 27- RELOCATION. LESSOR reserves the option, in its sole discretion, to relocate LESSEE to other premises in the Shopping Center upon no less than thirty (3 0) days' written notice. Such new premises shall be of similar size and shall be improved in a similar manner as the premises originally let to LESSEE. LESSEE'S refusal to accept such new premises shall constitute a material default under the Lease and shall entitle LESSOR, in its sole discretion, to terminate the Lease, -upon no less thaw sixty (60) days' written notice, in which event LESSEE shall be deemed to have waived any action against LESSOR for any damages in any way connected with such termination and 13 LESSEE shall proceed to wind up its business in the Shopping Center, 28. PROPORTIONATE SHARE. The Proportionate Share is a fraction, the numerator of which is lire number of square feet in the Dernised Premises and the denominator of which is the number of square feet in the Shopping Center. The proportionate Share shall be increased or decreased from time to time as the square feet in the Demised Premises and/or the Shopping Center are increased or decreased. The Proportionate Share, Operating Costs and real property taxes shall similarly be increased or decreased from time to time as the size of the Demised Premises and/or the Shopping Center are increased or decreased. 29. GENERAL PROVISIONS. 29.1 LESSEE shalt not record the Lease without LESSOR'S prior written consent, and any such recordation shall, at the option of LESSOR, constitute a non -curable default of LESSEE; provided, however, LESSEE shall, within. ten ('10) days after request by LESSOR execute and deliver to LESSOR a memorandum of the Lease for the purpose of recordation in a fo= prescribed by LESSOR. 29.2 ' Nothing herein contained shall be deemed or construed by the parties hereto, nor by any third party, as creating a relationship of principal and agent or of partnership or of joint venture between the parties hereof: Neither the method of computation of rent, nor any other provisions contained herein; nor any acts of the parties hereto, shall be deemed to create any relationship between the parties hereto other than the relationship of lessor and lessee. 29.3 The invalidity of any provision of the Lease as determined by a court of competent jurisdiction shall in no way affect the validity of any other provision' hereof: LESSOR and LESSEE acknowledge that they were represented by counsel in connection with the Lease and that each of them or their respective counsel reviewed and revised the Lease and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party or LESSOR shall not be employed in the interpretation of the Lease, 29.4 Time is ofthe essence. 29.5 The captions used herein are for convenience only and do not limit or amplify the provisions hereof. 29.6 Whenever a period of time is prescribed for action to betaken by- LESSOR; LESSOR shall not be liable or responsible for and there shall be excluded from the computation of any such period of time, any delays due to strikes, riots, acts of god, shortages of labor or materials, war, governmental laws, regulations or restrictions or any other causes of kind whatsoever which are beyond the reasonable control of LESSOR. 29.7 Upon LESSEE paying the rent reserved hereunder and observing and performing all the covenants, conditions and provisions on LESSEE'S part to be observed and performed hereunder, LESSEE shall have quiet possession of the Demised Premises for the entire Lease Term; subject to all the provisions of the Lease. 29.8 Each provision; performable by LESSEE shall be deemed both a covenant and a condition. The Lease contains all agreements of the parties with respect to any matter mentioned herein. No prior agreement or understanding pertaining to any such matter shall be effective, The Lease may be modified in writing only; signed by the parties in interest at the time of modification. 29.9 Subject to the provisions hereof restricting assignment or subletting by LESSEE and regarding LESSORS liability, this Lease shall bind the parties, their personal representatives, successors and assigns. The Lease shall be governed by the laws of the State of Florida. 29.10 In computing the square footage of the Demised Premises and all premises in the Shopping Center; LESSOR includes a proportionate factor of all meter rooms and other utility closets as may be required and interior corridors to which LESSEE has access. All dimensions are measured from the center line of interior walls and from the exterior face of exterior walls. 29.11 The terms "LESSOR' acid "LESSEE", as used herein, denote both singular 14 and plural and all genders, Where " LESSI E" consists of more than one person, whether natural or artificial, all the persons const ` :l "LESSEE";hall be Jointly and severally liable fax all obli,�ations to be perf(ir.med by L SSE: herein, lz°LESSEE is a corporation or other entity. LESSEE shall funis% to LESSOR such evidence as LESSOR may reasonably require in order to ovidence the authority of LESSEE to execute and deliver the Lease and to pezforix. its obligations hereunder, 29.12 The Effective ive Late of the lease shad be the date last executed by the parties v„ithout amendment or deietio�'i to tine Lease Paid its 1 "Mbit& 29,.13 All tern -is, covenants and conditions herein contained, to be perfartned by LESSEE. shalt be performed at ii:, sole cost and expense, and if LESSOR shall pay any wuin o -money or do any act which requires the payment ofmoney, by reason of the failure, neglect or refusal, of 1.1"` S1LE to perform such tenni, covenant or condition, the stun of money so paid by LESSOR shall be seemed additional rent, and shall be payable: by LESSEE, to 'LESSORwithin ten (10) days after dernand therefor. 23,14 Any amount due to LESSOR not paid when duo ,Mali bear interest at onc, percent (1•C'°fa)1nonthly tate accruing froin the date date:, 29,15 Provisions heroin to tire contrary a hotMthstandirsg, there sbha"ll lie absolutely no personal liability on the part of LESSOR, its directors, officers or shareholders, or any of its partners, their directors, officers or shareholders, Nvi.h respect to any of the terms, conditions and covenants of the Lease, and T. t;S ;isf' shall look solely to the interest of LESSOR R inn. th.o Shopping Center fbr the satisfaction ofeach and e,,oay remedy ofL SS,E'E, 23.16 The submission of the Lease for examination by LESSEE E does not con:situ to an offbr or an option to lease the Dernised Pre mi res, nor is it intended as a reservation oftlhe Demised Premises for the bele t of LESSEE, nor shall fire lease have any force; or validity until and unless a copy of it isreturned to i,E_.'8dEE duly executed by l,f°,SSORl 23:17 "RADON,GAS". Radon is a naturally occurringradioactive gas tlha . �,Vhen it has accts dated in a building in sufficient quantities, r aypresent b.e ith risks to persons who are exposed to it ewer trate, Levels ofradon that exceed federal and state guidelines have leen otathd na buildings in Florida, Additional information regarding radon and radon testier may be obtained fronn your a oaanty public health unit, 29,18 All obligations of LFSSEE to pay rent: or to perfibmi any ;bet utter the tertnination of he %..ease shall survive sLich torrxtination- I5 E30MBIT "B" DESCRIPTION OF 1 PREMISES The Premise(s) are / is CU 1, which contains approximately 2,173 SF NO EXMBIT "C" 1,ESS(A1'8 AIM LESSEE'S WOM Notwithstanding the terms of the Lease and Standard Provisions to the contrary, LESSOR and LESSEE agree as follows: I Lessor shall deliver the Premises with the following improvements; a- Install a/an ADA bathroom(s) to code b- Install electrical & lighting to code c- Hook up / install the HVAC system(s) including duct work d- Install drywall onto the exterior walls and install one exterior door leading to the garage e- Primer and white coat for the drywall. Ceiling color shall be TBD f- Install plumbing for break room, so long as Lessee choses to place said room adjacent to the bathroom(s) g- Insulate exposed pie risers in a way mutually acceptable to both Lessor and Lessee 2. Lessee shall be responsible to complete Tenant finishes so it may open for business. 17 EXHIBIT "D" LEASE GUAIGkNrY [f HIS IS A GENERAL GUAR ANT Y- WHICH IS M\TFORCEABLE BY LESSOR NA ,twlED HIEREINI, ITS SUCCES S ORSANI D ASSIGINI,S AND A-',qT'Y OnIER PERSON OR E INTTITY AT A.NYTrTN-4EHAV'1,NGT1-1E RIGHTS OF LESSOR, UNDE'R TTITE'LE-ASE DESCRIBED BEI,0W_A-ND IS ALSOAINT ABSOLUTE AND UNCONDITIONAL GUARANTY.] TUIS GUARANTY AGREE]MENI" IS FORTHAT CERTAIN LEASE DATED !March 2017 (dae "Lease")a BET-VVEEN Costa Center, LLC,, AS LANDLORD, AND, Florida International Consulting 1-n;= ineers Desigr4 Inc. COVERING CU I IN 'Ilie Shops at Casa Costa, Boynton Beach, FLORIDA. In consideration of file execution of the Lease by Lessor, the undersigned ("Guarantor") 0 hereby unconditionally guarantees to Lessor the fall and timely performance by Lessee ofall terms and conditions of the Lease, including but not limited -[a the payment of the rent Mad all other suras payable by Lease&. Guarantor acknowledges that it has A fintlaciall interest in Lessee and will Wifl, T benefit frons Lessor entering into the Lease Lassee, and that this Guaranty Agreement is a in.aterial inducement for Lessor to enter into the Lease. Guarantor agrees that (1) this obligation shall be enforceable against Guarantor vothout the necessity for ary suit or proceedings against Tenant and -odthouft the necessity of any notice of notipayment, nonperformance or nonobservance or any notice of acceptance of this Guaranty Agreement or of any other notice or dernand to which Guarantor might other ase be entitled by reason of being a guarantor, all of which are ex pressly waived; (2) irmnediately upon each and every Lease breach or default by Tenant, whether before or daring the terma of the Lease or thereafter in any holdover periosP)., without any notice to isr dom. and on Quarantor. Guarantor will (l) pay to Landlordthe sum or sunis in arrears, (H) pay to Landlord Wl damages, including but not limited to any expenses., costs and iters incurred by Landlord, that may be occasioned by Tenant's noriperfoirnance, and (bi) comply with or perform all terms and condi6ons of the Lease, (3) no extensiorl, forbearance at leniency extended by Landlord to Tenant shall wholly or partially discharge Guarantor hereunder, notwithstanding that Guarantor had no notice of any Lease breach or default or of any such lemency, forbearance or extension; (4) Landlord and Tenant, xkrithout notice to or consent by Gruarantor, may at any time enter into modificatorns, renewals, extensions, amendments and/or other agreements respecting the Lease, and Guarantor shall not be wholly or partially released thereby, it being intended that Guarantor shall continue as guarantor NArith respect to the Lease as so modified, ienewed, extended., amended or ahor.wise affected and notwithstintslin a I g any assign of the Lease or subletting in whole or part of the prer, ices dernised by the Lease nor arry holding over by Tenant beyond the term of the Lease The obligations of Guarantor herein shall be co -extensive with those of Tenant under the Lease and, snall remain in effect as lixig as Tenant's obligationstrader the Leascare in effect, 'I'llis Grsrrx.,fiy Agreerrient is continuing, absolute and unconditional and shall continue without being affected by any impairment, release or limitation of the liability of Tenant or its estate in bank-ruptcy resulting front the, operation ofarry present or future provision. ofthe Bankruptcy Code ofthe Unned States or from the decision ofany court interpreting the same.. Griarantor lVrdier agreesto be bound by each and. every obligatiort of Tenant Linder the Lease, -,?Y,,th the same force one, effect as iFGuarantor were designated in and had executed the Lease as Tenrattherounder, This Guaranty Agreement is a pritnary guaranty of payment and. per barinance and shall not be subject to any counterclaim, set-off, deduction or defense. No failure or delay on alae part of Landlord in exercising any right or romedy under the Lease an(Yor this Gruaranty Agreenrent shall operate as a waiver -thereof nor shall a single or pat tial exercise of any --right or remedy preclude any other or farther exercise thereof, and all rights end re-medies of Landlord hereunder and under the Lease shall be cumulative, Until all of Tenant's obligations lunder the Lease are fully performed, Guarantor waives any rights that it irony have against Tenant by reason of Guarantor's compliallce with this CyLiaranty Pkgreenrent, and subordinates any linbility or indebtedness of TenariT held by Guarantor to the obligations of Tenant to Landlord under the Lease. if' yivarantor consists ofmore than one person and/or entity, (a) this Guaranty Agreement shall be binding, or, all of there jointly and severally, and (b) notice to or froin any of them will constitute notice to or from each of them. M To be effective, any notice or other communication to Guarantor must be sent by registered or certified mail, return, receipt requested, and. shall be addressed to, or suchother address as may be designated by Guarantor to Landlord by registered. or certified mail, return receipt requested. and the drue of rendition of such notice or other communication shall be 3 business days after it is deposited in ars official (J"nited States Mail receptacle, postage pjcpaid, To be effective, any notice or other cominunicatioq to Landlord must be sent by registered or certified mail, return receipt requested, and shall be addressed c/o Merin. Hunter Codman, ItLc,, 1601 Forum Place, Suite 200, West Palm. each, Florida 33401, or such other address as may be designated by Landlord to Guarantor by isgistered or certified snail, returm receipt requested, and the time of randition of such notice or otheT cornmunication shall be 3 business days after it is deposited in an official United StatesIvInil receptacle, postage prepaid. 'This Guaranty, .Agreenient, which is to be governed by and construedio accordance with the laws of the state in which the ],eased premises are located (the "SubJject State:"), shall also bind Guarantor's legal or personal representatives, heirs, successors, and assigns (as the case may be) andinure to the benefit of Landlord's successors and assigns and any other person or entity at any time havin- the lights of Landlord un der. the Lease, Guarantor will forthwith pay to Landlord all attorneys' fess and disbursements incurred by Landlord in connection with any breach or default by Tenant under the Lease and/or the enforcement of ibis Guaranty Agreement, in each instance whether or not Tuit is brought (arid if suit is brought, thmugh appeals and collection efforts), Any sums not paid to Landlord when due hereimder will bear hiterest at the rate of 15% pot airnurn from the due date until full payn-iorit. is received by Landlord. As a farther inducement to LandlOTd to snake and enter into the, Lease and in cons'deration thereof Guarantor agrees that in any action or proceeding brow, ht on, under or by virtue bythis Guaranty Agreement, Guarantor shall and does hereby waive trial by ;tory and the benefit of any statute of limitations defense, and Guarantor agrees that the applicable courts ofthe Sul)ject Store may have jurisdiction over Guarantor upon appropriate service on Guarantor anywhere in the United States in a manner in accordance with the lavis of the Sulf ect State. Wi the at Un iting the foregoing, Guaxatrocr hereby irrevocably appoints points Tonant as Cmarantor's agent for service of process related to this Guaranty Agreement. This Guaranty Agreement contains the entire agreement bet -ween the parties with respect to the matters covered hereby (all prior written. andoral are enrents between them regarmnggsuch. matters being stiperseded hereby), and Guarantor acknowledges that no agetit, representative, salesman or officer of Landlard or its property manager has authority to make or has tirade/ any statement, ageament or representation, either oral or wfitteri, in connection hcrevdth, modifying, adding to or changing the terms and conditions herein set forth. loo oristorns or &,--Jings between the parties s�hafl be vernnitted to coriftnifict or modify the terms hereof This Guaranty Agreement shall not be construed more strictly against on, e party ii - sure ly by reason of, such party's preparation hereof, If any provision of this Gwiranty Agreement shall be held by a court to be invalid or unenforceable, to the maximum extent possible the remaining provisions hereof shall in no vvay be affected or impaired and such remaining provisions shall continue in bull force and. effect. Neither this Guaramy,Agreement nor any of its provisions can be waived, modifiedor terminated orally, but only by a. -written instrument duly executed by ox sin behalf of-dw party against V�hom enforceinent, of any waiver, modification, or ternunwtion is sought. Guarantor fully, and expressly intends that the foregoing -requirements as to a wriong be strictly adhered to and strictly interpreted and enforce(] by any court. which may be asked to consider the smatter, 19 H�R James Khalil, Individually VA 0v�--R�v' --k Date of Birth: A�-d Social Security No.: 4(r, WITNESS: NAME: SIGNATLME- i Q+3 Tenant shall be allowed to place above mansard signage on the Premises so long as it conforms to all city, county and state regulations. Landlord shall not unreasonably withhold approval. W Renewal Option Tenant shall have one (1) option(s) to renew for a period of three (3) year(s) at the then fait market value. Tenant shall be required to give 180 days prior written notice of its intention to renewal. If Tenant has been in economic default at any time during the Lease Term or fails to submit written notification of its intention to renew then Tenant shall forfeit any renewal options hereby granted. W, r CRA BOARD MEETING OF: May 9, 2017 X I Consent Agenda I I Old Business I I New Business I I Legal Information Only CRAAB AGENDA ITEM: VIII.F. SUBJECT: Approval of Boynton Beach Real Estate Pros for Commercial Rent Reimbursement Grant Program SUMMARY: The Commercial Rent Reimbursement Grant provides eligible new or existing businesses with rent payment assistance for a maximum period of twelve months within the first eighteen months of a multi-year lease. Boynton Beach Real Estate Pros is a tenant located at 420 W. Boynton Beach Blvd, Suite 202, Boynton Beach, FL 33435. Base rent, as specified in the lease, is $1,400. Boynton Beach Real Estate Pros falls under the terms of a Tier II business (as outlined in the grant application). If approved the applicant is entitled to receive reimbursement for half of its monthly rent for a 12 month period. The total reimbursement for this business is $8,400. The applicant meets the eligibility requirements under program guidelines and will be reimbursed on a quarterly basis with proof of rent payments. FISCAL IMPACT: $8,400 — Project Fund 02-58400-444 CRA PLAN/PROJECT/PROGRAM: 2016 Boynton Beach Community Redevelopment Plan CRAAB RECOMMENDATION: N/A CRA BOARD MOTION/OPTIONS: Approve the Commercial Rent Reimbursement Grant not to exceed $8,400 to Boynton Beach Real Estate Pros located at 420 W. Boynton Beach Blvd, Suite 202, Boynton Beach, FL 33435. Digitally signed by Michael Simon Michael Simon em cn=monm@bbfl.us,� US email=simonm Date: 2017.05.05 14:25:55 -04'00' Michael Simon, Interim Executive Director This grant Is divided Into two Ism. Each tier consists of different tow of businesses that ar.- f * =and theamount offundingavailable to the business. Service71or One Bualno= (Full Resburonts Only) Tier One Businesses are eligible for up to haff (50%) of the businesss bass monthly rent CW $1,250 per month, whichever Is lots. (Ma)dmum amount of the grant Is $15,000.) Tier Two Businesses Restaurants I I# 1;seating capacity tundersit Gourmet! ► ► Market a Bakery ! andBreakrW e Clothing Boutique - clothing, shoes & accessories a Home D6cor/Design - horrm furnishings, art gallerles, kitchen wares a Specialty Businesses - stationary, gifts, sporting goods Medical Offices o Law Offices t_ 9 Insurance Offices Accounting Olflces Marketing Office Applicant must be a tenant and have a proposed or exemited mulll-year ka" ! mlnlmum). The commercial lease must define the landlord -tenant relationship a �Wi minimum provide the ibik)Wng InformatIon: A description of the space being vented Including square lbotege and a drawing of the space. Description of Ies that are the tonant's responsibility. n Pop 3 of it 710 N. Fedad Highmy Boynton Bewh, FL 33435 Phwe 561-737-325d 561-737-3258 • ,►: i• :r- • - �, spa •' � - r . request 1br• 2. Proof of rent payment (i.e., copies of to f1ront & back of cancelled rent checits fbr that quarter's or proof of direct deposit). �=] nWA the business Is In operMon. Staff may also conduct unannounced site vlelts periodically In order i! ensure compliance with the terms of Dilmnitinualtion The receipt of post payments Is no guarantee of future payments. The CRA retains the right to discontinue ! zi .a r: at any time according to Its sole and absolute discretion. The Boynton Beach CRA Is a public agency and Is governed by the uFlorlda Public Records Program's Ruiss/Requirements and Application. APPUCANT - • �. 1:111-11111 :RAI 0 1 101V1, f.T�T'1 Now Business to Boynton .r i . ' f Do you have an execut9d lem agreement Yes No t,;.,,. Square footage of sidsting location Square katage of new location. Type of i & y -lam! rrl .v 1 �j _ 4; • ��.1_i � Imo. �. Bvintm Bewk FL 33435 Phow 361-737-3256 Fix 561-7374250 ti Birth:Date of Currant Are you ap*ng fbr gnud waidarms under any other program offamd by the CRA (nw One . ,. 2 w I. +. _ e r r_ wlplw. pop 8 Of 1 710 N. Fadad Hi&my BOYMM Blawk FL 33435 Phms -737-3256 Pax 561 -737 - a .. . •i � . ;r _ a I � ,,, I • + _ r : it ■ H� I:I. ♦ L • r,' A 177 M17,717771MLF I 1t the program criteria or Is no longer berwMng the furt1herance of the CRA misellon. I hensby vwalve my rights under the privacy and conMentielfty proWslon acd, and ghre my consent to { _ �• i! ,,: ■ . _ .. : �, � ♦ it �. . r• � ri• I• _ - confidential Information ghon hweln. I ftffther grant permission. and sullhorlize any bank, employer or other public or private agency t>! disclose •1 - I t dearred necessaryto complete this application. I ghm permission to the CRA or Its agents to take photos of myself and business to be used to promote the program. I understand that If this application and the Information furnished In support of the application are 1bund to be lnoompleK It will not be prcoeesecl. Pop 9 i 710 N. Fedwd HWmy BOYMM BW4 FL 33435 Ph= 561-737-3256 Fox 56 1-737-3253 2;- • It Is the responsiblifty of the applicant to READ AND UNDERSTAND all aspects of the Grant Program's "Rel-quirement8 and Application. a 07 IL/ 1'2 Printed 9_ Title 1-flnelpal/Owner's Signature Printed Name Title Principal/Owner's Signature Printed Name Title "Ll, . - .I ME PC, Printed Name Title Notary to =139i v [41911 j kil I I BEFORE ME. an offlcer duly authorized by low to administer oaft and tak-. who Is/are personally known to me or produced "f: as Idantification, and acknowledged he/she executed the fbregolng Agreement fbr the use and purposes mentioned in It and that the Instrument Is his/her act and dead. IN WITNESS OF THE FOREGOING, I = . _ my hand and official sealState and County afbreseld on -- O 1 NOTARY PUBLIC My Commission Expires. Pop 10 of 11 710 N. Boynton BoAC16 FL 33435 Phone 561-737-3256 Fax 561-737-3258 � � +--,�, ,phi :�_ ► , a ! } Ckliv4 M;qy" . ApplIcaWn. Landlord's Signature - -------- Date STATE OF e COUNTY OF . A BEFORE ME, an offkmr duly purpown mentioned In N and that ft kwtrumwd Is h1w1her ad and dead. pop 11 dil 710 W 33435 Pbmw 561-737-32M FU 561-737-3239 ƒ .i &±}2) $»!ga ¢=\=2 }w\�\ \��/ t 6� � � � �� \ � � \ \ \�� - „ : _ \)\� \\j \�ƒ� . _&y, >y\ \.. j\G\ »b \° §®&E\ -« ��/ � \(\j\/��\\\��/ ��-�j) a \}\�� :j ®\j, & ) . «}\�. , , . _ 2 / \� , <%xxca \�:�»\/[\- ƒ .i &±}2) $»!ga ¢=\=2 }w\�\ W41,75 16 1 W&M Ell AMMM4411,13131j) I DI MI .. 1M 1IV7371 - i i - . Is it Alliance Group Enterprises, INC 1 I; "1 11 iA , I to be paid, observed and performed, the Landlord hereby leases unto the Tenant� his?her heirs, -Wali, �_ �VME�ZAKnLW and for no otheri se, all those cmuin Premises known municipally as: purp o 420 West Boynton Beach Blvd. Suite 202, Boynton Beach Florida 33435 (hereinafter called the 'Tremises") upon the following taims and conditions: 1. RENTAL AMOUNT; Commencing April 01, 2017, Tenant agrees to pay Landlord the sum of One Thousand Four Hundred Dollars ($1,400.00) plus Palm Beach County Sales Twc per month in advance on the first day of each month (the 'Ttenfl. Said Rent shall be delivered by Tennt to Landlord or the Landlord's designated agent at the -following location-, I tf -M 9 �tt 74 M I M -M- j =7 i I T 3 =..A.1I r, Z 74W47, M 1_2 F rs rs 1 no 74 1 r V M r. —io Mri 71 To 441.1� J*'MAIAO Wilk I j-, fq�� 2. TERM: The Premises are leased fbr a lease term beginning on April 0 1, 2017 2018. k noRshalliemannerthe 1 A 4�' - i e and obligations ■ i.1 eunderstood however, 1 + no sub -letting a sub -leasing or parting with possession of a part or parts of the Premises shall take place except with thewrittenconsent the : e a l a a which Rconsentshall not R unreasonably w1 1 1 a. 1 i .i i a F � :61 9 J R 1 e ! �! " � ') ■ ,. � „ 1 ''ea � le R accordance withthemunicipal zoning and building gcode Tenant's Sub-Tenant'sexpense. 7.. UTILITIES: Tenant aclmowledges to pay as the same become due respectively, all -charges a public utilities,including water, 1'electricalpower orenergy,steam or hot, A cable,ie d upon e, o1respectof ePromises and • fittings, X71 1 liapparatus, meters or offia thingsa in respectthereof and a "■ work or services performed e a companyor commissionin connection withsuch public Electricmeter subject space. ivaa1 a. a i ■1g.i 1 u QUOa- -a:R 11: a :Ie a• + 1'I ! i -M, IT41Re `: a s aaail+ IIi a � a � F 9 ; ! 1 a � R`. 1 a + -. # i e a :'. e e ;� ' e / ': 1 1 /.. , ► e :,. . .... a 11 in 1S a +I +# R: .;, 4 a' Ne ! •: `fiR !l �i.■ 1'. R. I • � I ! 1 a 11 - ! : �i a ' I +i1 � a - � RY M - ! a + 1 ' I a ■ � a ! '. ♦+-s !;ta : i .. ♦ : ',, ' � I I : a i •� � ! � � • '►1"II 4 a � � a �a 1 a e aSL. S a � e : I `. e : e',! - Aw i M L1 a ! �' i [ 1 ►' a a � a I ► [� ! : tike a �[ aI : � e " +w ;a e; a a a ;:ia a;� a^: R: ,� u� :aa K: as ♦? R� r1: � �`, �a � I r - .,:: i ' : M * e � : a a :. � t ! ■ ;' R 4 1 a a M :1i 1 • i - : " 'ii a " ai 1 ! : ! : 1 1 :.d :.e 1� ' .pie I 1 Ma i a � ; # '.... • ! - " � ! i. :Ia�R a RAS-� I• :a "" � e as1 1' ►:;e ;.� 1 Ii eIa � «: 1R' 'w;: ei 9. . During 'theTerm of this Agreement,real estate taxes,personal R ■ Rwftaxes,and d documentary1a rental, taxes will accrueand become due. Thefollowing •. t responsible for payments: Real Estate ��. I t e-Taxesa a Assessment Landlord shall = pay a4 real estate tRxes and taxassessments, which a I: be or -z.';"f by anyfederal,state,municipal a local taxing '.authoritiesPayment 'Iof all such real estate must be made directly to the concernedtaxing I a, Ml ♦'�: 'i: ►I! ►' 1 A'� - 1�v ► ! t : f�.► i : 1 k=►! �' ;.its ►i 1rent reserved and in arrears under the Lease. t ► ]i � ♦ i ►;� :1 ► 4`':►►II • 1► i ■ '.r i ;[ ■�► i a ► 11i. } i +C ► f I► t !i ► ►.' ; A N M . ! :: A ► ► M III I ' 1 # 1 it ► if ►, 4 ' +1 R ► ; A ► ',i'', ,� ►► : s r :s s w e: s. Ir 6s► s► ►" s s s Agent151 =4 MItTAU4014:1 .a, or by s a' by mail,► ►r ► to the TenantPremises or upon personal delivery to the Premises whether or not Tenant is actually present at the time of said delivery. notices totheLandlord ! served by mailingfust class►►moi or by personal delivery to: 32. PERSONAL PROPERTY OF TENANT: Once Tenantthe ►s property left in the unit shall be stored by the Landlord for fourteen (14) days. If within that time period, +d 11 : Y does not claim S ► property, maydispose Rsaid items 1 any mannerchooses. Al ','s 'IWss s i a► _�s ► '�s ii s, . r s_.r ., 35. 'IeAGREEMENT: . . r` . The foregoing agreemenncludingany attachments s s... i) ► Ai. byreference,the entire between Ai parties ► isupersedes oral1 written representations► agreements that may have been made by either party ►Tenant represents that Tenanthas relied. solely on'TenanVsjudgment ► entering into ibis agreement. Tenant acknowledges having been advised to consult with independent legal counsel i I.. / "intotins Agreement and ► 1 + s decided t R waive suchrepresentation / ► advice.Tenant -acknowledgesthatTenanthas i 5 ► ,p}understood this e1► n and has beenfamishedei. duplicate original. � .'��'�'� �` '. DTII # s s ' ► s : s ' : . ►, s ► ' s ► s ► s,� � s s� ; e s► ► 1i 1 A 173 11,714'' _ t.. SIGNED, SEALED AND DELIVERED: mmk 606 Date: MarCh OOP/ aO 17- 17��V' �}�! //'} � � * �� F''•"*k �. ice►- r" --s � ,�,x • i �i� �L 0) O �r zt N •� N L U r 4 O o ^^0 u a) LL i O yyy' CU cr tt i CU U vJ ��4 { S �r •' � �j O O Q 0 (6 V � L O JCU 4-- a QO Q 0) CU 00 676 � o (1) Z< N L W Q 0� Qo� cu x,00 ° 0)-o 0O o 0 o U-0 0 > N Grim m 0 (6 0 CU (1) O 0 — 70 a) �} 0 0 0 U U) U cu N �Q cu ` co N cu o c E a� r ` 0 0 N N N s Nicklien, Bonnie From: Charles Anzalone <canzalon@yahoo.com> Sent: Thursday, April 13, 2017 10:19 AM To: Nicklien, Bonnie Cc: Utterback, Theresa Subject: Re: CRA Economic Development Grant Approval Bonnie, Theresa, Thank you so much for your help and guidance through this process. I really want to thank the CRA and the Board for their consideration. The grant money will be very helpful for getting the Studio off the ground and running. We had a great free community class last night and have several more scheduled over the next few days. The video team is coming in tonight to film us for the upcoming Boynton Beach movie presentation. Stop in for the class and you can be in the video too! Please let know if there is anything else you need from me or if you have any questions Sincerely, Charles 917 589 5199 561 600 7822 - studio Yoga Fit Boynton Beach https://www. yogafitstudios.com/studios/boyntonbeach-fl-33435/103328 https://www.facebook.com/yogafitboyntonbeach/ On Wed, 4/12/17, Nicklien, Bonnie <NicklienB@bbfl.us> wrote: Subject: CRA Economic Development Grant Approval To: "Charles Anzalone" <canzalon@vahoo.com> Cc: "Utterback, Theresa" <UtterbackT@bbfl.us> Date: Wednesday, April 12, 2017, 4:18 PM Good Afternoon Charles, Congrats! Please see the attached letters of approval for your applications for the CRA Economic Development Grants. 1 Nicklien, Bonnie From: Utterback, Theresa Sent: Thursday, April 27, 2017 11:50 AM To: Nicklien, Bonnie Subject: FW: Citizen Complaint Comment Log. Theresa fitter' ac De °elr: pn—,ient Services Specialist CRA. Boynton Beach Con-m-wnity I ede °elr: pn—,ient Agency 10 N. Federal Hwy. I Boynton Beach, Florida 3435 561-600-9094 1 15 561-737-3258 ��- Utter'bacl<T@bbfl.us littp. at liboynton. on"i 10-1 America's Gateway to the Gulfstream Please be advised that Florida has a goad public records law and all correspondence to mie via enIail n-,Iay be subject to disclosure. Under, Florida records law, en -,,ail addresses are public records. Therefore, your, e-miail on-m-wni ation and your, e-miail address miay be subject to public disclosure. From: Coppin, Mercedes Sent: Wednesday, April 26, 2017 4:01 PM To: Utterback, Theresa <UtterbackT@bbfl.us> Cc: Simon, Michael <SimonM@bbfl.us> Subject: Citizen Complaint Hi Theresa, I just received a call from Susan Schaffel regarding the redevelopment of the area near the old high school. She is quite disgusted with the standstill that has been going on for two years and wants to know when the area will be redeveloped. She commented that there were lots of drugs off of Seacrest and feral cat colonies living underneath the old high school – both very disgusting things that she no longer wants to be exposed to. She said that if things don't change soon, she'll be forced to move out of the area. I wasn't sure of the exact timeline for the Town Square project, so I told her I would have someone follow-up with her to address her concerns. Can you please call her back? She can be reached at (561) 733-2883. Also, she did not want to provide me with her last name, but I Googled her phone number and found it. Thank you, Mercedes Mercedes Coppin Special Events Coordinator C Boynton Beach Con-m-wnity Redevelopn-,ient Agency 710 N. Federal Hwy. I Boynton Beach, Florida 33435 561-600-9097 1 16 (561) 737-3258 1\,=,-'l CoppinM@bbfl.us I Q, littp//www.catcliboynton.con-,i N M A N America's Gateway to the Gulfstream Please be advised that Florida has a broad public records law and all correspondence to mie via en -rail n-,Iay be subject to disclosure. Under, Florida records law, en -mil addresses are public records. Therefore, your, e-n-iail con-imiunication and your, e-n-iail address n-,iay be subject to public disclosure. r CRA BOARD MEETING OF: May 9, 2017 1 Consent Agenda I I Old Business I I New Business Legal I X I Information Only AGENDA ITEM: X.B. SUBJECT: Marketing & Business Development Campaign SUMMARY: Boynton Forum - As part of the ongoing marketing efforts to showcase Boynton Beach as a destination, the CRA staff allocated funds in the budget for a monthly double page spread in the Boynton Forum. Every month the double page spread has a different theme to support the overall mission to promote downtown Boynton Beach. The April ad highlighted the marina marketing campaign Boynton Beach An Ocean of Possibilities (Exhibit A) Neighborhood News - Working with Neighborhood News to reach out to the western Boynton communities, this marketing strategy will continue to promote downtown Boynton Beach. The April ad featured the marina marketing campaign Boynton Beach An Ocean of Possibilities with an editorial about the Marina Open Space Project. (Exhibit B) Delray Beach Newspaper - The April issue of the Delray Newspaper, a full-page color ad featured the marina marketing campaign Boynton Beach An Ocean of Possibilities reaching over 15,000 direct online readers, a circulation of 12,000 papers distributed to 250 locations in Palm Beach County and a copy mailed directly to over 2,000 homes. (Exhibit C) Business Development Board Profile Magazine - The CRA and City collaborated on a '/2 - page ad in the BDB's Profile Palm Beach County's business magazine. The ad highlights Location. Location. Location. Boynton Beach's commitment to competitive incentives, motivated workforce, expedient building permit approvals and convenient transportation options. (Exhibit D) Catch Boynton Blog - A blog is a website that combines text, images, and links to serve as a social networking service. The CRA blog can be found at catch boynton.wordpress. com. The "Catch Boynton" blog focuses on tourism and marketing for Boynton Beach. By blogging, we can reach a more diverse audience to encourage and inform them about Boynton Beach and all that the City of Boynton Beach has to offer. Follow catch boynton.wordpress. com for bid - weekly updates covering a various scope of things to do around the city. The month of April featured Boynton Harbor Marina: Redeveloped and Open for Business. (Exhibit E) r Event Signage - Movies and Music signage went up in 11 locations from east to west in Boynton Beach to let the community know of the upcoming events.44 signs and 48 signs were installed with the new posts which gives the signs more of a finished look. (Exhibit F) Schoolhouse Children's Museum event postcards - The CRA staff collaborated with the Schoolhouse Children's Museum with efforts to support the Museum's event Princesses and Super Heroes. Staff designed, printed and distributed 1000 postcards to the local businesses in Boynton Beach. The CRA understands that building a relationship with the Schoolhouse Children's Museum will help promote downtown Boynton Beach as a destination by highlighting their initiatives that will attract visitors to the downtown corridor. (Exhibit G) Award Submissions — Staff has been preparing the award submissions for the following - Florida Redevelopment Agency • Capital Project / Beautification- Boynton Harbor Marina Open Space Project • Management Programs / Partnerships- Social Media Outreach Program • Outstanding New Building Project- 500 Ocean • Promotion- BBPiratefest.com website and Downtown District Banner Project • Planning Studies — 2016 CRA Redevelopment Consolidation Plan • 2016 Annual Report International Festivals & Events and Florida Festival & Events • Special events marketing- Pirate Fest & Mermaid Splash, Holiday, Holiday Boat Parade, Blarney Bash, Boynton Beach Celebrates MLK, Movies in the Park, and Music on the Rocks Boynton Harbor Marina Marketing Campaign — A '/2 -page ad in the Marina Life magazine featuring Boynton Beach An Ocean of Possibilities highlighting the diving in Boynton Beach. (Exhibit H) FISCAL IMPACT: FY 2016-2017 Budget, Line Item 02-58400-445 CRA PLAN/PROJECT/PROGRAM: 2016 CRA Redevelopment Plan (pages 128— 131) CRAAB RECOMMENDATION: N/A CRA BOARD MOTION/OPTIONS: Unless otherwise offered by the CRA Board, a motion is not required at this time Digitally signed by Tracy Smith -Coffey DN: c=Tracy Smith -Coffey, o, u, Tracy Smith -Coffey emailnSmiithCoffeyt@bbflus,c=US Date: 2017.05.04 17:17:18 -04'00' Tracy Smith -Coffey, Marketing & Business Development Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E CATCHQOYNTON I I Exhibit F Exhibit F Exhibit G Schoolhouse Children's IV J 5 E U fvl & 1. E A R N I N 6 CENTER P R I ^N" G 1, 8 f, 5; SUPER HERO DAY 2017 SATURDAYgAPRIL 22ND 10 am to 2 pm 129 East ocean , nue, Boymoon Beach 111AISIG ILINI fflI, JIM10,111, ISM $7 SHCM Members $10 Non-members MEET PRINCESS & SUPER HERO CHARACTERS Local Super Heroes Police Officers & Firefighters PLUS ... Face Painting - Music - Games & Activities E111SWIEWAM911101—MMO 1=7 Up,= 2h I I ' L 1 Exhibit H r CRA BOARD MEETING OF: May 9, 2017 1 Consent Agenda I I Old Business I I New Business I I Legal IX I Information Only CRAAB AGENDA ITEM: X.C. SUBJECT: Recap of the 1St Social Media Outreach Program Meeting SUMMARY: The CRA held a Q&A meeting on Thursday, April 27th at 6.00 pm at the Intracoastal Parkway Clubhouse to introduce the Social Media Outreach Program to small businesses located within the CRA District. The program kicked off with great results. In total, we had 17 business owners & members attend the meeting equating to 9 businesses. This did not include 5 other businesses that have expressed interest in the program but we're unable to attend. Currently, the businesses that have submitted applications include- Del Sol Bakery, Schmidt Stained Glass, Amanda James Gallery, Posh Properties, Boardwalk Ice Creamery, Healing Hearts Veterinary Hospital, YogaFit, South Florida Master Craft, Jamerican Cuisine, and Bailey's Blendz. We are awaiting applications from the following business that have expressed interest - Benchmark Painting, Bark Avenue Hotel and Spa, Clear Copy, Infusion Cafe, EI Campo, and Baciami Italian Restaurant. Currently, Matt is meeting with the businesses one-on-one to conduct the Needs Assessment interviews, which will determine the specific needs of each business participating in the program. Overall, each business has expressed gratitude in offering this program. They all feel that it can help grow their presence in the community via social media platforms. FISCAL IMPACT: N/A CRA PLAN/PROJECT/PROGRAM: 2016 Boynton Beach Community Redevelopment Plan CRAAB RECOMMENDATION: N/A CRA BOARD MOTION/OPTIONS: Digitally signed by Michael Simon Michael Sim o n em cn=Michael Simon, o, ou, email=simonm@bbfl.us, c=US Date: 2017.05.05 14:26:19 -04'00' Michael Simon, Interim Executive Director r CRA BOARD MEETING OF: May 9, 2017 1 Consent Agenda I I Old Business I I New Business I I Legal IX I Information Only CRAAB AGENDA ITEM: X.D. SUBJECT: Status Update of 480 E. Ocean Ave and 211 E. Ocean Ave SUMMARY: 480 E. Ocean Avenue (see Attachment 1) • Approved permit inspections • Construction Progress • Letter to owner, Certificate of Completion reminder (August 2, 2017)' 211 E. Ocean Avenue (see Attachment 11) • Currently in planning review • Updated on 4/21/17 - fire, mechanical, plumbing & structural were not approved by City general contractor/architect will need to review City comments and make appropriate corrections to the plans • Email request to property owner and architect on status. FISCAL IMPACT: N/A CRA PLAN/PROJECT/PROGRAM: 2016 Boynton Beach Community Redevelopment Plan CRAAB RECOMMENDATION: N/A CRA BOARD MOTION/OPTIONS: N/A Digitally signed by Michael Simon Michael Sim o n em cn=Michael Simon, o, ou, email=simonm@bbfl.us, c=US Date: 2017.05.05 14:27:06 -04'00' Michael Simon, Interim Executive Director ATTACHMENT 01132+�=l Kaleel & Crozier, PLLC 54 NE 4th Avenue Delray Beach, FL 33481 Re: Property: 480 E. Ocean Avenue, Boynton Beach, FL Buyer: Ocean Avenue Pride, LLC Seller: Boynton Beach Community Redevelopment Agency As a follow up to my February 8, 2017, correspondence regarding the above referencd*9 property, this will serve as a reminder that a Certificate of Completion must be received by yo client no later than August 2, 2017, per Paragraph 3 of the Contract Addendum. i Please let me know if you have any questions regardingth1111'above. � Si n c W,t-- �'/ Kenneth odge 32M CC: Mike Simon, BBCRA Theresa Utterback, BBCRA JACKSONVILLE TALLAHASSEE 1'is i WEST PALM BEACH w ao -41 m wx fall co Lw ir-� Fit, r"i 6. uM ads w 411� -0 c C11 4-i C3 C 0 4- C, io Wi Q 0 +4 41 03 e- a C-, ZL W CO w ao -41 m 11MMEMME MI wx co Lw 4, -11 yy 01 (N 42 LL AP kv I 116, 41-11 VII ursu1i � tj R Wk. CL IV 17- gR, EF, wo 0 2- J? m tz eiy RE: 2w� JS,� = 1� t5, c V, !T, 'S 4"4 ;6 1_1 41 CO r'T I-—"3 (31 0 (D E-1, 2, Z ft,L N� er,' a" Q) iz > 11MMEMME MI wx ATTACHMENT II Utterback, Theresa From: Simon, Michael Sent: Monday, May 1,2O17 1:53 PM To: s|@shove|readyp jects.us;Athan Pekas (tprakas@rne.com) Cc: jvvi||ianns@awoohs.conn;Utterbock,Theresa Subject: 211 EOcean Avenue Importance: High Follow Up Flag: Follow u�, Flag Status: Flagged Hello Steve and Tom: |am receiving calls from Brokers that are trying to get information on the 211 E. Ocean Avenue project that the property isnot onMLS orLoopnet,noone is returning their calls and when they speak to someone they are told that nothing can bedone for 6months. In addition, they have mentioned that the property hasn't been highlighted as part of your email blasts for commercial properties. I understand that there might be some discrepancies between the Brokers story and actual conversations, however, these comments are making their way to the CRA Board/City Commissioners. The lack ofany construction activity or even regular maintenance of the property makes things look worse than they might actually be from your perspective. Would you mind providing me with a response to this email and an update on the project permitting and lease activities at your earliest convenience. Thank you very much for your time. Michael Simon Interim Executive Director Boynton Beach Community Redevelopment Agency 71ON.Federal Hwy. | Boynton Beach, Florida 33435 � 56�-6OO�)U�1 | m�� 561'737-3258 . �� BOYNTON 10"' mmBeACHCRA America's Gateway to the Gutfstrearn I c 0 CD c) W cr o r, 00 CD CD > < z < W 0 w 0 Z 0 C) < -i c 0 tm c 6. CL .0 % CL CL M V "a CL CL E 3 LIU ui WIN I ml IIIIIIIIIIII loom 0 1 04 Mi Xmm U. xt Ito T2 C, -1 Cl I C, 55) 21- r`4 (14 1-4 ill �-q e 4D o p Oka m 2L 42, J Er LU 'oi ej L tn L,p Lt 3-JAk"i iA LO CC -� I'&I V-1 I f -A N 0 0 al Pp OA (14 44 0:1 Cv ... ... ......... .. ml IIIIIIIIIIII loom 29 Cq iry N N V9 S4 N it -I we N r- IN N C-5 C9 C` X14 a Q CV Q 0 0 1 04 Mi U. Ito T2 z Z 1-4 ill 4D o TAII iA f Er LU 'oi tn 3-JAk"i iA I'&I V-1 I f -A N 0 0 al Pp OA (14 44 0:1 Cv Ig to GwA 04 o OD IV Cp 7h c mw t5 15 Z �R f" 0 0 g'> 011 M � uj rin t) (.'5 E z 0- ai E5 > R IN R, Eq 153 ER 2-9 2 RE9 B" H Lm 29 Cq iry N N V9 S4 N it -I we N r- IN N C-5 C9 C` X14 a Q CV Q 0 04 Ito T2 z Z 1-4 ill o TAII iA f tn 3-JAk"i iA I'&I V-1 I f -A N 0 0 al Pp OA (14 44 0:1 Ig r CRA BOARD MEETING OF: May 9, 2017 (Tabled 3/15/17 Consent Agenda I X I Old Business I I New Business I I Legal I I Information Only I I CRAAB AGENDA ITEM: XIII.A. SUBJECT: Consideration of Purchase and Development Agreement with Ocean One Boynton, LLC, for the CRA Owned Property Located at 222 N. Federal Highway, a/k/a the Ocean One Project SUMMARY: On March 8, 2016 the CRA Board received a Letter of Intent from the adjacent property owner, Ocean One Boynton, LLC, to purchase the CRA owned property located at 222 N. Federal Highway for purposes of redevelopment (see Attachment 1). The proposed project utilizes the CRA owned parcel and developer owned property to build an 8 -story, 231 residential mixed use building with 8,575 square feet of leasable commercial space. The developer described the remaining portion of the development site as Phase 11 of the overall project with an estimated 118 residential apartments along with a 100 plus room hotel. Additionally, the CRA Board approved the issuance of a thirty -day Notice of Intent to Dispose of Property as required under Florida Statute. At the January 10, 2017 CRA Board meeting, the Ocean One Boynton, LLC, development team presented their proposed project site plan to the CRA Board. In addition to the site plan presentation, Ocean One Boynton, LLC, also presented a request for Tax Increment Financing (TIF) to provide the additional funding necessary to complete the project. After review, the Board approved the proposed site plan as being consistent with the goals and objectives of the CRA Plan. Regarding the proposed TIF request, the Board directed the developer to consider including additional items to benefit the public. These items included more public parking, workforce housing, filling the retail/commercial spaces and a Community Benefits Agreement for job creation. On February 9, 2017, Ocean One Boynton, LLC, submitted a Purchase and Development Agreement for the CRA Board's consideration (see Attachment 11). CRA staff and legal counsel have reviewed the agreement with key terms and conditions presented as follows: Purchase Price: $10.00 Deposit: $1,000 refundable at Closing Closing Date: Thirty (30) days from Site Plan approval by the City Commission Commencement of Construction: Shall take place within two (2) years from the date of Closing (Construction Commencement Period). If the Purchaser fails to commence construction within the timeframe provided, Purchaser shall be obligated to commence construction of a public plaza on the CRA's property no later than twelve (12) months after expiration of the Construction Commencement Period. Special Warranty Deed: A Special Warranty Deed will be recorded concerning the Purchaser's obligations described in the Commencement of Construction Period. As of the date of this meeting, CRA staff has not received a draft Tax Incentive Funding Agreement from the Ocean One development team for staff review or presentation to the CRA Board. Only the terms and conditions set forth in the Purchase and Development Agreement are being presented for the Board's consideration. In light of this fact, any obligation or requirement for the Purchaser to provide the public benefits sought by the CRA Board would need to be added to the Purchase and Development Agreement before execution to ensure these items were provided. r FISCAL IMPACT: If the CRA Board approves the sale of the property for less than the fair market value of $460,000 as established in the appraisal dated January 5, 2016, then the sale of the property will require approval of the City Commission prior to execution of the agreement (see Attachment III). CRA PLAN/PROJECT/PROGRAM: 2016 Boynton Beach Community Redevelopment Plan - Downtown District (pages 81-92) CRAAB RECOMMENDATION: In order for the CRA Advisory Board to recommend acceptance of an LOI by Ocean One, the LOI terms would have to include some type of claw -back provision and be consistent with other closing date terms. Here are our suggestions (see attached): • Closing date should be consistent with other CRA property transfers — close when construction financing has been approved and the developer breaks ground, not just when the site plan is approved. • Put a lien on the property for its assessed value of $460,000 so that Ocean One can't just sell the property having paid only $10 for it. Such lien would be subordinated to construction, but would otherwise apply. The lien would not be released until all phases of the project are complete. • Provide a first right of refusal to the CRA Board for $10 to repurchase the property should Ocean One decide to sell rather than build. This gives the CRA Board the ability to leverage this property with the new landowner. Additionally, this right of refusal could be exercised at the end of 5 years if Ocean One has not developed the entire site. • Require Ocean One to build the hotel first to create jobs and eliminate the blight that exists on the old Bank of America site now. Before this LOI is signed, Ocean One needs to provide Letters of Intent from hoteliers. • Provide additional public parking (costing $460,000) on this site or elsewhere in Town Center to make up for the under -parked situation that exists at the Boynton Harbor now (currently 30-50 cars park illegally on the site daily). CRA BOARD MOTION/OPTIONS: 1) Motion to approve the Purchase and Development Agreement with Ocean One Boynton, LLC, for the CRA owned property located at 222 N. Federal Highway. Please note: For purposes of the motion, if the CRA Board approves the sale of the property for less than the fair market value, then the sale of the property will require approval of the City Commission prior to execution of the agreement. 2) Motion not to approve the Purchase and Development Agreement with Ocean One Boynton, LLC, for the CRA owned property located at 222 N. Federal Highway. 3) The CRA Board may consider introducing additional terms and conditions to the Purchase and Development Agreement prior to offering a motion to approve. Digitally signed by Michael Simon Michael Simon em cn=Michael Simon, o, ou, email=simonm@bbfl.us, c=US Date: 2017.05.05 14:28:45 -04'00' Michael Simon, Interim Executive Director ATTACHMENT �� 0��K E L March 8, 2016 Ms. Vivian Brooks Executive Director Boynton Beach CRA 710 N. Federal Highway Boynton Beach, FL3]4]S Re: Boynton Beach CRA Property for Ocean One Southeast corner of Boynton Beach Boulevard and Federal Highway ("Property") Dear Ms. Brooks nmrysnV emn^/mw/sm/ smn aacknmn o°arneLn/cxa,snn oopr,ucmmoun c*"um�nxeox. *eaum,�ummn On behalf of the Property owner, Ocean One Boynton, LLC ("Property Owner"), I appreciate your time in considering this submission to redevelop the Property referenced in this package with an 8-stng\ 230 residential unit and 2,675 square feet ofretail mixed use project ("Project"). My client believes in investing in urban redevelopment and is especially excited to work with the Boynton Beach CBA in an effortto accomplish the goals of the City and CRA's strategic plan by redeveloping the site with the Project. The Projectwill contribute to the redevelopment of the area by not only providing a significant investment into the community bycreating jobs and increasing the tax base, but by providing upscale retail as well as brings new upscale housing downtown tothe area with more disposable income for the surrounding businesses. The Property Owner owns the larger property to the south which isimmediately adjacent to the Boynton Beach CRA small parcel. Byconsolidating the parcel, the CRA will end upwith a unified development covering the entire block. The Project is the first phase of redevelopment ofthe overall block. More commercial and residential is planned for the second phase. Tmconstruct the Project, thePropertyDvvnerisseeNn0thesupportand approval of the Boynton Beach CRA to sell its parcel to the adjacent owner. The parcels collectively contain approximately 86,309 square feet or 1.98 acres, and are located atthe southeast corner of Federal highway and Boynton Beach Boulevard, Boynton Beach, Florida. Land costs for the assemblage have turned out to be far in excess of the market value of the land itself, therefore Property Owner is proposingthat the CRA sell its property to the Property Owner at the nominal rate often dollars. 14SAs,ux@��/,Svxe36.R, ",`;4312 Te\�|saUuznzano mx.(oa�|�o7�zzw w,��muuu,^cnm Attached to this request are the proposed elevations and site plan for the Project as well as the folio cards and an aerial showing the location. If you need any additional information, please do not hesitate to call. Sincerely, Bonnie Miskel, Esq. BM/rmm 14 E. 4th SUTM, SUM, 36, 8c), n Raton, FL 334312 Tel: i5611 405-3300 Fax: (5611 409-2341 666E.M. 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N-1ARqn )LKVN&Nf-lqHI4 -14140V�39 NOIMOB',kVMW-*4 WLM3A 'N V DOM N 666E -4t8 -50E 910CE UPIJOU `=Xwl lm;qW P -IS 9I55I 'WR SRON I R 1_� _M NOlWOl3',kVMHOH -;9ClS3AN C\l ,vd S;00;!qljv - aU U ao� 'DOSSV V VSONIOM9 - MVWC[99XA - NgHOO 34-.4 K"�t=rl Gr p Gory R, Mkolits, CFA Homestead Exemption Property W ,n = a Location Address 1 14 N FEDERAL HWY Municipality BOYNTON BEACH Parcel Control Number 08-43-45-27-01-000-0410 Subdivision DEWEYS SUB IN Official Records Book 28011 Page 847 Sale Date DEC-2015 Legal Description DEWEYS SUB LT 41 (LESS N FEDERAL HWY, E OCEAN AVE, E 25 FT NE 6TH CT & SE RTN CRV AREA R/W5) & Mailing address Owners 1620 K ST NW STE 1200 OCEAN ONE BOYNTON LLC WASHINGTON DC 20006 1694 Sales date Price OR Book/Page Sale Type Owner DEC-201 5 $10 28011 /0847 QUIT CLAIM OCEAN ONE BOYNTON LLC FEB-2005 $9,000,000 18193 / 1 325 WARRANTY DEED ONE BOYNTON LLC DEC-1997 $1,700,000 10134/ 1078 WARRANTY DEED DEC-1997 $100 10134/ 1075 QUIT CLAIM No Exemption Information Available. Number of Units 0 *Total Square Feet 0 Acres 3.0130 Use Code 1000-VACANT COMMERCIAL Zoning CBD - Central Business ( 08-BOYNTON BEACH ) Tax Year 2015 2014 2013 Improvement Value $36,428 $37,567 $36,735 Land Value $2,651,169 $3,347,360 $2,362,842 Total Market Value $2,687,597 $2,800,000 $2,399,577 All values are as of January 1 st each year Tax Year 2015 2014 2013 Assessed Value $2,687,597 $2,639,535 $2,399,577 Exemption Amount $0 $0 $0 Taxable Value $2,687,597 $2,639,535 $2,399,577 Tax Year 2015 2014 2013 Ad Valorem $60,302 $65,420 $54,468 Non Ad Valorem $4,957 $4,957 $4,310 Total tax $65,259 $70,377 $58,778 Gary R Mkolits, CFA Homestead Exemption Palm Beach Count etc W ds Location Address 222 N FEDERAL HWY Municipality BOYNTON BEACH Parcel Central Number 08-43-45-27.02-000.0010 Subdivision FUNK BROS ADD IN Official Records Book 14347 Page 1565 Sale Date QCT-2002 Legal Description FUNK BROS ADD LT 1 LYG S OF & ADJ TO NE 2ND AVE R/W (LESS E 25 FT NE 6TH CT, W 25 FT & RTN CRV AREA NFED HWY R/WS) & LT Mailing address Owners 710 N FEDERAL HWY BOYNTON BEACH CRA BOYNTON BEACH FL 33435 3910 Sales Date Price OR Boole/Page Sale Type Owner OCT-2002 $900,000 14347/ 1565 WARRANTY DEED BOYNTON BEACH CRA APR-1990 $570,000 06409 /0958 WARRANTY DEED MAY-1 989 $570,000 06347/0182 WARRANTY DEED DEC-1981 $490,000 03638/ 0775 WARRANTY DEED DEC-1980 $426,000 03418 /0912 WARRANTY DEED 2 Exemption Applicant/owner Year Detail BOYNTON BEACH CRA 2016 FULL: CRA`S AND DDA'S Number of Units 0 *Total Square Feet 0 Acres 0.4748 Use Code 8900 -MUNICIPAL Zoning CBD - Central Business ( 08-BOYNTON BEACH ) Tax Year 2015 2014 2013 Improvement Value $0 $0 $11,491 Land Value $532,716 $527,442 $413,680 Total Marker Value $532,716 $527,442 $425,171 All values are as of January 1 st each year Tax Year 2015 2014 2013 Assessed Value $514,457 $467,688 $425,171 Exemption Amount $514,457 $467,688 5425,171 Taxable Value $0 $0 $0 Tax Year 2015 2014 2013 Ad Valorem $0 $0 $0 Non Ad Valorem $0 $0 $0 Total tax $0 $0 $0 •' r', i f. ATTACHMENT II PURCHASE AND DEVELOPMENT AGREEMENT This Purchase and Development Agreement (hereinafter "Agreement") is made and entered into as of the Effective Date (hereinafter defined), by and between BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, a public agency created pursuant to Chapter 163, Part III, of the Florida Statutes (hereinafter, "SELLER") and OCEAN ONE BOYNTON, LLC (hereinafter, "PURCHASER"). In consideration of the mutual covenants and agreements herein set forth, the Parties hereto agree as follows: 1. PURCHASE AND SALE/PROPERTY. SELLER agrees to sell and convey to PURCHASER, and PURCHASER agrees to purchase and acquire from SELLER, on the terms and conditions hereinafter set forth, the Property which consists of a parcel located in Palm Beach County, Florida as more particularly described as follows (hereinafter, the "Property"): See Attached Exhibit "A". 2. PURCHASE PRICE AND PAYMENT. The Purchase Price to be paid for the Property shall be Ten Dollars ($10.00), receipt of which is hereby acknowledged. The parties agree that SELLER is conveying the Property to PURCHASER for the construction of a mixed- use development with at least 200 residential units as described on Exhibit `B." (the "Development Project"). SELLER has complied with Section 163.380, Florida Statutes, in proceeding with the sale of the Property to PURCHASER. 3. DEPOSIT. $1,000.00, to be paid to Closing Agent as hereinafter defined within five (5) days of the Effective Date, which shall be nonrefundable unless otherwise provided herein. 4. EFFECTIVE DATE. The Effective Date of this Agreement shall be the date when the last one of the SELLER and PURCHASER has signed the Agreement. 5. CLOSING. The purchase and sale transaction contemplated herein shall close within thirty (30) days from approval by the City of Boynton Beach of the PURCHASER'S Site Plan Application No. for the Development Project with conditions acceptable to PURCHASER (hereinafter, "Site Plan") unless extended by other provisions of this Agreement or by written agreement, signed by both parties. Notwithstanding the foregoing, the Closing shall occur no later than one year from the Effective Date. 6. TITLE TO BE CONVEYED. At Closing, SELLER shall convey to PURCHASER, by Special Warranty Deed in a form substantially in accordance with Exhibit "B" attached hereto, and complying with the requirements of the Title Commitment (hereinafter defined), valid, good, marketable and insurable title in fee simple to the Property, free and clear of any and all liens, encumbrances, conditions, easements, assessments, restrictions and other conditions except only the following (collectively, the "Permitted Exceptions"): (a) general real estate taxes and special assessments for the year of Closing and subsequent years not yet due and 00751286-3 P:\WpDocs\Ocean One Boynton\Purchase & Development Agreeinentl 1 PURCHASE AND DEVELOPMENT AGREEMENT Page 2 of 21 payable; (b) covenants, conditions, easements, dedications, rights-of-way and matters of record included on the Title Commitment or shown on the Survey (hereinafter defined), to which PURCHASER fails to object, or which PURCHASER agrees to accept, pursuant to Section 7.1 and Section 7.2 hereof. 7. INVESTIGATION OF THE PROPERTY. Within thirty (30) days of the Effective Date ("Feasibility Period"), PURCHASER and PURCHASER'S agents, employees, designees, contractors, surveyors, engineers, architects, attorneys and other consultants (collectively, "Agents"), shall have the right, at PURCHASER'S expense, to make inquiries of and meet with members of Governmental Authorities regarding the Property and to enter upon the Property, at any time and from time to time with reasonable notice to SELLER and so long as said investigations do not result in a business interruption, to perform any and all physical tests, inspections, and investigations of the Property, including but not limited to Phase I and Phase II investigations, which PURCHASER may deem necessary. During this Feasibility Period, PURCHASER may elect, in PURCHASER'S sole and absolute discretion, to terminate this contract. If PURCHASER elects to terminate this Agreement in accordance with this Section, PURCHASER shall: (i) leave the Property in substantially the condition existing on the Effective Date; (ii) to the extent practicable, shall repair and restore any damage caused to the Property by PURCHASER'S testing and investigation; and (iii) release to SELLER (without representation or warranty), at no cost, all reports and other work generated as a result of the PURCHASER'S testing and investigation (other than proprietary information prepared solely by Purchaser). PURCHASER hereby agrees to indemnify and hold SELLER harmless from and against all claims, losses, expenses, demands and liabilities, including, but not limited to, attorney's fees, for nonpayment for services rendered to PURCHASER (including, without limitation, any construction liens resulting therefrom) or for damage to persons or property arising out of PURCHASER'S investigation of the Property. PURCHASER'S obligations under this Section shall survive the termination, expiration or Closing of this Agreement. 7.1 Seller's Documents. SELLER shall deliver to PURCHASER the following documents and instruments within five (5) days of the Effective Date of this Agreement: copies of any reports or studies (including environmental, engineering, surveys, soil borings and other physical reports) in SELLER'S possession or control with respect to the physical condition of the Property, if any. 7.2 Title Review. Within thirty (30) days of the Effective Date ("Title Investigation Period") ' eriod"), PURCHASER shall obtain, at the PURCHASER'S expense, from a Title Company chosen by PURCHASER (hereinafter "Title Company"), a Title Commitment covering the Property and proposing to insure PURCHASER in an amount to be determined subject only to the Permitted Exceptions, together with complete and legible copies of all instruments identified as conditions or exceptions in Schedule B of the Title Commitment. PURCHASER shall examine the Title Commitment and deliver written notice to SELLER no later than the end of the Title Investigation Period, notifying SELLER of any objections PURCHASER has to the condition of title (hereinafter "PURCHASER'S Title Objections"). If PURCHASER fails to deliver PURCHASER'S Title Objections to SELLER within the aforesaid review period, title shall be deemed accepted subject to the conditions set forth in the Title Commitment. If PURCHASER timely delivers the PURCHASER'S Title Objections, SELLER 00751286-3 PURCHASE AND DEVELOPMENT AGREEMENT Page 3 of 21 shall have thirty (30) days to attempt to cure and remove the PURCHASER'S Title Objections (hereinafter "Cure Period"). It is understood by the parties that SELLER shall have no obligation to incur costs or initiate legal proceedings to address PURCHASER'S Title Objections. In the event that SELLER is unable to cure and remove, or cause to be cured and removed, the PURCHASER'S Title Objections within the Cure Period to the satisfaction of PURCHASER, then PURCHASER, in PURCHASER'S sole and absolute discretion, shall have the option of (i) extending the Cure Period and the Closing for one additional thirty (30) day period, or (ii) accepting the Title to the Property as of the time of Closing or (iii) canceling and terminating this Agreement, in which case, the Deposit, if any, shall be returned to PURCHASER and the Parties shall have no further obligations or liability hereunder, except for those expressly provided herein to survive termination of this Agreement. Prior to the Closing, PURCHASER shall have the right to cause the Title Company to issue an updated Title Commitment ("Title Update") covering the Property. If any Title Update contains any conditions which did not appear in the Title Commitment, and such items render title unmarketable, PURHCASER shall have the right to object to such new or different conditions in writing prior to Closing. All rights and objections of the Parties with respect to objections arising from the Title Update shall be the same as objections to items appearing in the Title Commitment, subject to the provisions of this Section. 7.3 Survey Review. PURCHASER, at PURCHASER'S expense, may obtain a current boundary survey (the "Survey") of the Property, indicating the number of acres comprising the Property to the nearest 1/100th of an acre. If the Survey discloses that there are encroachments on the Property or that improvements located on the Property encroach on setback lines, easements, lands of others or violate any restrictions, covenants of this Agreement, or applicable governmental regulations, the same shall constitute a title defect and shall be governed by the provisions of Section 7.2 concerning title objections. 8. CONDITIONS TO CLOSING. PURCHASER shall not be obligated to close on the purchase of the Property unless each of the following conditions (collectively, the "Conditions to Closing") are either fulfilled or waived by PURCHASER in writing: 8.1 Representations and Warranties. All of the representations and warranties of SELLER contained in this Agreement shall be true and correct as of Closing. 8.2 Condition of Property. The Property is being sold in as -is condition. 8.3 Pending Proceedings. At Closing, there shall be no litigation or administrative agency or other governmental proceeding of any kind whatsoever, pending or threatened, which has not been disclosed, prior to closing, and accepted by PURCHASER. 8.4 Compliance with Laws and Regulations. The Property shall be in compliance with all applicable federal, state and local laws, ordinances, rules, regulations, codes, requirements, licenses, permits and authorizations as of the date of Closing. 00751286-3 PURCHASE AND DEVELOPMENT AGREEMENT Page 4 of 21 8.5 CRA Approval. The closing of this Agreement is expressly contingent upon the final approval by the City of Boynton Beach of the Site Plan. 9. CLOSING DOCUMENTS. The SELLER shall prepare, or cause to be prepared, the Closing Documents set forth in this Section, except for documents prepared by the Title Company. At Closing, SELLER shall execute and deliver, or cause to be executed and delivered to PURCHASER the following documents and instruments: 9.1 Deed. A Special Warranty Deed (the "Deed") conveying to PURCHASER valid, good, marketable and insurable fee simple title to the Property free and clear of all liens, encumbrances and other conditions of title other than the Permitted Exceptions, consistent with Section 6 of this Agreement. 9.2 Seller's Affidavits. SELLER shall furnish to PURCHASER an owner's affidavit attesting that, to the best of its knowledge, no individual or entity has any claim against the Property under the applicable construction lien law; and that there are no parties in possession of the Property other than SELLER. SELLER shall also furnish to PURCHASER a non -foreign affidavit with respect to the Property. In the event SELLER is unable to deliver its affidavits referenced above or any other document reasonably required by the Title Company, the same shall be deemed an uncured Title Objection. 9.3 Closing Statement. A closing statement setting forth the Purchase Price, all credits, adjustments and prorations between PURCHASER and SELLER, all costs and expenses to be paid at Closing, and the net proceeds due SELLER. 9.4 Corrective Documents. Documentation required to clear title to the Property of all liens, encumbrances and exceptions, if any, other than Permitted Exceptions. 9.5 Additional Documents. Such other documents as PURCHASER or the Title Company may reasonably request that SELLER execute and deliver, and any other documents required by this Agreement or reasonably necessary in order to close this transaction and effectuate the terms of this Agreement. 10. PROBATIONS, CLOSING COSTS AND CLOSING PROCEDURES. 10.1 Prorations. Taxes and assessments, if any, for the Property shall be prorated through the day before Closing. Cash at Closing shall be increased or decreased as may be required by prorations to be made through the day prior to Closing. Taxes shall be prorated based upon the current year's tax with due allowance made for maximum allowable discount. If Closing occurs at a date when the current year's millage is not fixed and current year's assessment is available, taxes will be prorated based upon such assessment and prior year's millage. If current year's assessment is not available, then taxes will be prorated on prior year's tax. A tax proration based on an estimate shall, at request of either party, be readjusted upon receipt of tax bill. 10.2 Closing Costs. PURCHASER shall pay for documentary stamps on the 00751286-3 PURCHASE AND DEVELOPMENT AGREEMENT Page 5 of 21 deed, recording the deed and all general closing expenses (settlement fee, courier fees, overnight packages, etc.). Each party shall be responsible for their own attorneys' fees. The PURCHASER shall be responsible for the payment of the survey and the title insurance searches and policies. 10.3 Closing Procedure. PURCHASER shall fund the Purchase Price subject to the credits, offsets and prorations set forth herein. SELLER and PURCHASER (as applicable) shall execute and deliver to the Closing Agent designated by PURCHASER, the Closing Documents. The Closing Agent shall, at Closing, deliver the Closing Documents and a "marked - up" Title Commitment to PURCHASER, and promptly thereafter, record the Deed and other recordable Closing Documents in the appropriate public records. 10.4 Existing Mortgages and Other Liens. At Closing, SELLER shall obtain, or cause to be obtained, satisfaction or release of record of all mortgages, liens and judgments applicable to and encumbering the Property. 11. REPRESENTATIONS. COVENANTS AND WARRANTIES. 11.1 Seller's Representations and Warranties. SELLER hereby represents, covenants and warrants to PURCHASER, as of the Effective Date and as of the Closing Date, as follows: 11.2 Authority. The execution and delivery of this Agreement by SELLER and the consummation by SELLER of the transaction contemplated by this Agreement are within SELLER'S capacity and all requisite action has been taken to make this Agreement valid and binding on SELLER in accordance with its terms. The person executing this Agreement on behalf of SELLER has been duly authorized to act on behalf of and to bind SELLER, and this Agreement represents a valid and binding obligation of SELLER. 11.3 Title. SELLER is and will be on the Closing Date, the owner of valid, good, marketable and insurable fee simple title to the Property, free and clear of all liens, encumbrances and restrictions of any kind, except the Permitted Exceptions (and encumbrances of record which will be discharged at Closing). 12. DEFAULT. 12.1 Purchaser's Default. In the event that this transaction fails to close solely due to PURCHASER's refusal to close after obtaining an approval of the Site Plan by the City, and such failure to close is not a result of SELLER's default or a title/survey defect, subject to the provisions of Paragraph 12.3 below, SELLER may terminate this Agreement and be entitled to retain the Deposit, following which neither PURCHASER nor SELLER shall have any further obligations or liabilities under this Agreement, except for those expressly provided to survive the termination of this Agreement; provided, however, that PURCHASER shall also be responsible for the removal of any liens asserted against the Property by persons claiming by, through or under PURCHASER. The failure of PURCHASER to comply with the provisions set forth in this Agreement shall constitute a Default and Breach of this Agreement. If PURCHASER fails 00751286-3 PURCHASE AND DEVELOPMENT AGREEMENT Page 6 of 21 to cure the default within seven (7) days' notice from the SELLER, the SELLER may terminate the Agreement and retain the deposit. 12.2 Seller's Default. In the event that SELLER shall fail to fully and timely perform any of its obligations or covenants hereunder or if any of SELLER'S representations are untrue or inaccurate, then, notwithstanding anything to the contrary contained in this Agreement, PURCHASER may, at its option: (1) declare SELLER in default under this Agreement by notice delivered to SELLER, in which event PURCHASER may (i) seek an action for specific performance;, or (ii) terminate this Agreement, wherein the full deposit shall be returned to PURCHASER and neither Parry shall have any further rights hereunder. 12.3 Notice of Default. Prior to declaring a default and exercising the remedies described herein, the non -defaulting Parry shall issue a notice of default to the defaulting Parry describing the event or condition of default in sufficient detail to enable a reasonable person to determine the action necessary to cure the default. The defaulting Parry shall have fifteen (15) days from delivery of the notice during which to cure the default, provided, however, that as to a failure to close, the cure period shall only be three (3) Business Days from the delivery of notice. Both parties agree that if an extension is requested, such extension shall not be unreasonably withheld. If the default has not been cured within the aforesaid period, the non -defaulting Party may exercise the remedies described in this Section 12. 12.4 Survival. The provisions of this Section 12 shall survive the termination of this Agreement. 13. NOTICES. All notices required in this Agreement must be in writing and shall be considered delivered when received by certified mail, return receipt requested, or personal delivery to the following addresses: If to Seller: Boynton Beach Community Redevelopment Agency Interim Executive Director, Michael Simon 710 N. Federal Highway Boynton Beach, Florida 33435 With a copy to: Tara Duhy, Esq. Lewis, Longman & Walker, P.A. 515 North Flagler Drive Suite 1500 West Palm Beach, Florida 33401 If to Buyer: William Morris Ocean One Boynton, LLC 777 E. Atlantic Avenue, 4100 Delray Beach, FL 33483 Mr. Davis Camalier 1629 K Street N.W. 00751286-3 PURCHASE AND DEVELOPMENT AGREEMENT Page 7 of 21 Suite 1200 Washington, DC 20006 Mr. Michael Ross 9804 S. Military Trail Suite El 1 Boynton Beach, FL 33436 With a copy to: Gary S. Dunay, Esq. Dunay, Miskel and Backman, LLP 14 SE 4I' Street, 436 Boca Raton, FL 33432 14. BINDING OBLIGATION/ASSIGNMENT. The terms and conditions of this Agreement are hereby made binding on, and shall inure to the benefit of, the successors and permitted assigns of the Parties hereto. 15. RISK OF LOSS. In the event the condition of the Property, or any part thereof, is materially altered by an act of God or other natural force beyond the control of SELLER, PURCHASER may elect, as its sole option, to terminate this Agreement and the parties shall have no further obligations under this agreement, or PURHCASER may accept the Property without any reduction in the value of the Property. 16. BROKER FEES. The Parties hereby confirm that neither of them has dealt with any broker in connection with the transaction contemplated by this Agreement. Each Party shall indemnify, defend and hold harmless the other Party from and against any and all claims, losses, damages, costs or expenses (including, without limitation, attorney's fees) of any kind or character arising out of or resulting from any agreement, arrangement or understanding alleged to have been made by either Party or on its behalf with any broker or finder in connection with this Agreement. However, SELLER'S indemnification obligations shall not exceed the statutory limits provided within Section 768.28, Florida Statutes, and CRA does not otherwise waive its sovereign immunity rights. The provisions of this Section shall survive Closing or termination of this Agreement. 17. ENVIRONMENTAL CONDITIONS. To the best of SELLER'S knowledge, the Property and the use and operation thereof are in compliance with all applicable county and governmental laws, ordinances, regulations, licenses, permits and authorizations, including, without limitation, applicable zoning and environmental laws and regulations. In addition, SELLER has not received any notices of any violation of environmental condition or other notices of violation of municipal ordinances. 18. DEVELOPMENT AND SALE OF THE PROPERTY. SELLER and PURCHASER acknowledge that the Property is being sold to PURCHASER for the sole purpose of developing a mixed-use project at the northeast corner of Boynton Beach Boulevard and Federal Highway. 00751286-3 PURCHASE AND DEVELOPMENT AGREEMENT Page 8 of 21 18.1 Seller Design Approval. The PURCHASER and SELLER acknowledge, that the SELLER has reviewed the Site Plan and finds the Site Plan acceptable and consistent with the CRA Redevelopment Plan. Provided the Site Plan meets all applicable development and buildings codes upheld by the City of Boynton Beach, and provides a minimum of 200 residential units, SELLER'S design approval shall have been met. 18.3 Development Timeline. PURCHASER has filed its Site Plan with the City. PURCHASER agrees to diligently and continuously pursue approval of the Site Plan and all other necessary approvals until the first building permit has been issued for the Development Project. PURCHASER agrees to commence construction of the Development Project within two (2) years from the date of closing hereunder (hereinafter "Construction Commencement Period") Once the first building permit is issued for the Development Project, PURCHASER agrees to diligently and continuously pursue completion of construction of the Development Project, subject to force majeure and other matters beyond the reasonable control of PURCHASER. If PURCHASER fails to commence construction within the timeframe set forth herein, PURCHASER shall be obligated to commence construction of a public plaza (the "Plaza") on the Property containing benches, walkways and landscaping in accordance with Exhibit "XX" attached hereto and made a part hereof by reference no later than twelve (12) months after the expiration of the Construction Commencement Period. 18.4 Survival. The provisions of this Section 18 shall survive the termination of this Agreement. 19. MISCELLANEOUS. 19.1 General. This Agreement and any amendment hereto, may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall, together, constitute one and the same instrument. The section and paragraph headings herein contained are for the purposes of identification only and shall not be considered in construing this Agreement. Reference to a Section shall be deemed to be a reference to the entire Section, unless otherwise specified. No modification or amendment of this Agreement shall be of any force or effect unless in writing executed by Parties. This Agreement sets forth the entire agreement between the Parties relating to the Property and all subject matter herein and supersedes all prior and contemporaneous negotiations, understandings and agreements, written or oral, between the Parties. This Agreement shall be interpreted in accordance with the laws of the State of Florida. The Parties hereby agree that jurisdiction of any litigation brought arising out of this Agreement shall be in the Fifteenth Judicial Circuit in and for Palm Beach County, Florida, or, should any cause of action be limited to federal jurisdiction only, in the United States District Court for the Southern District Court of Florida. 19.2 Computation of Time. Any reference herein to time periods which are not measured in Business Days and which are less than six (6) days, shall exclude Saturdays, Sundays and legal holidays in the computation thereof. Any time period provided for in this Agreement which ends on a Saturday, Sunday or legal holiday shall extend to 5:00 p.m. on the next full Business Day. Time is of the essence in the performance of all obligations under this Agreement. Time periods commencing with the Effective Date shall not include the Effective 00751286-3 PURCHASE AND DEVELOPMENT AGREEMENT Page 9 of 21 Date in the calculation thereof. For purposes of this Agreement, Business Days shall mean Monday through Friday but shall exclude state and federal holidays. 19.3 Waiver. Neither the failure of a parry to insist upon a strict performance of any of the terms, provisions, covenants, agreements and conditions hereof, nor the acceptance of any item by a parry with knowledge of a breach of this Agreement by the other parry in the performance of their respective obligations hereunder, shall be deemed a waiver of any rights or remedies that a parry may have or a waiver of any subsequent breach or default in any of such terms, provisions, covenants, agreements or conditions. This paragraph shall survive termination of this Agreement and the Closing. 19.4 Construction of Agreement. The Parties to this Agreement, through counsel, have participated freely in the negotiation and preparation hereof. Neither this Agreement nor any amendment hereto shall be more strictly construed against any of the Parties. As used in this Agreement or any amendment hereto, the masculine shall include the feminine, the singular shall include the plural, and the plural shall include the singular, as the context may require. Provisions of this Agreement that expressly provide that they survive the Closing shall not merge into the Deed. 19.5 Severability. If any provision of this Agreement or the application thereof shall, for any reason and to any extent, be invalid or unenforceable, neither the remainder of this Agreement nor the application of the provision to other persons, entities or circumstances shall be affected thereby, but instead shall be enforced to the maximum extent permitted by law. The provisions of this Section shall apply to any amendment of this Agreement. 19.6 Handwritten Provisions. Handwritten provisions inserted in this Agreement and initialed by CRA and SELLER shall control all printed provisions in conflict therewith. 19.7 Waiver of Jury As an inducement to PURCHASER agreeing to enter into this Agreement, PURCHASER and SELLER hereby waive trial by jury in any action or proceeding brought by either parry against the other party pertaining to any matter whatsoever arising out of or in any way connected with this Agreement. 19.8 Attorneys Fees and Costs. Should it be necessary to bring an action to enforce any of the provisions of this Agreement, reasonable attorneys' fees and costs, including those at the appellate level, shall be awarded to the prevailing parry. 19.9 Binding Authority. Each parry hereby represents and warrants to the other that each person executing this Agreement on behalf of the CRA and SELLER has full right and lawful authority to execute this Agreement and to bind and obligate the party for whom or on whose behalf he or she is signing with respect to all provisions contained in this Agreement. 19.10 Recording. This Agreement may be recorded in the Public Records of Palm Beach County, Florida. 00751286-3 PURCHASE AND DEVELOPMENT AGREEMENT Page 10 of 21 19.12 SELLER Attorneys' Fees and Costs. SELLER acknowledges and agrees that SELLER shall be responsible for its own attorneys' fees and all costs, if any, incurred by SELLER in connection with the transaction contemplated by this Agreement. 19.13 Public Records. SELLER is public agency subject to Chapter 119, Florida Statutes. The PURCHASER shall comply with Florida's Public Records Law. Specifically, the PURCHASER shall: a. Keep and maintain public records that ordinarily and necessarily would be required by the SELLER in order to perform the service; b. Provide the public with access to such public records on the same terms and conditions that the SELLER would provide the records and at a cost that does not exceed that provided in chapter 119, Fla. Stat., or as otherwise provided by law; c. Ensure that public records that are exempt or that are confidential and exempt from public record requirements are not disclosed except as authorized by law; and d. Meet all requirements for retaining public records and transfer to the SELLER, at no cost, all public records in possession of the PURCHASER upon termination of the contract and destroy any duplicate public records that are exempt or confidential and exempt. All records stored electronically must be provided to the SELLER in a format that is compatible with the information technology systems of the SELLER. 19.14 Right of First Refusal. A. Prior to a "Termination Event" (as defined below) Purchaser hereby grants to Seller a right of first refusal to purchase the Property pursuant to the terms and conditions set forth in this Section 19.14 ("Right of First Refusal") as follows: (i) If Purchaser receives an offer to purchase the Property as part of a separate and isolated transaction and not as part of an offer to purchase the Property in conjunction with any other Property owned by Purchaser or an affiliate of Purchaser, pursuant to a written contract or letter of intent, Purchaser shall give Seller notice of the offer by delivering a copy of the contract or letter of intent to Seller ("Notice"). (ii) Within ten (10) days of receipt of the Notice, Seller shall either waive or exercise its right of first refusal. If Seller elects to exercise its right of first refusal, Seller shall, within ten (10) days after receipt of the Notice, deliver to Purchaser an agreement to purchase the Property on the same terms as set forth in the Notice including the delivery of a deposit (if applicable) and upon receipt by the Purchaser of the foregoing from the Seller, Purchaser and Seller shall enter into a Purchase and Sale Agreement pursuant to the same terms and conditions as the Notice. 00751286-3 PURCHASE AND DEVELOPMENT AGREEMENT Page 11 of 21 (ii) If Seller fails to exercise or waive its right of first refusal in accordance with the terms and conditions stated herein, within ten (10) days after receipt of the Notice, then Seller's right of first refusal shall be deemed to have been waived. B. This Right of First Refusal shall terminate upon the issuance of a certificate of occupancy, certificate of completion or other equivalent certification issued by the applicable governmental authority for improvements made to the Property (a "Termination Event"). Upon a Termination Event, this Right of First Refusal shall terminate and have no further force or effect. C. This Right of First Refusal shall only apply to an offer to purchase the Property as a separate and isolated transaction and shall not apply to any offer received by Purchaser to purchase the Property in conjunction with any other Property owned by Purchaser or an affiliate of Purchaser. D. Additionally, this Right of First Refusal shall not apply to: (i) a sale or transfer by any bank, life insurance company, federal or state savings and loan association or real estate investment trust which acquires title to the Property as a result of owning a mortgage upon the Property or a portion of the Property and whether title is acquired by deed from the mortgagor or its successors in title or through foreclosure proceedings; (ii) a sale by any such institution which so acquires title; (iii) a sale or transfer of interests in the Property or to Purchaser to a partnership, joint venture or other business arrangement over which Purchaser shall retain management control or shall be a partner, member or joint venturer or other substantial interest holder; or (iv) any transfer of title to the Property or portion thereof at a duly advertised public sale with open bidding which is provided by law, such as but not limited to execute sale, foreclosure sale, judicial sale or tax sale. E. The provisions of this Section 19.14 shall survive closing and delivery of the deed of conveyance of the Property and notice of Seller's rights hereunder shall be recorded in the public records of Palm Beach County, Florida pursuant to a Memorandum of Right of First Refusal. The Memorandum and the rights under this paragraph shall terminate automatically and without further action upon a Termination Event. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective date. BUYER 00751286-3 SELLER PURCHASE AND DEVELOPMENT AGREEMENT Page 12 of 21 OCEAN ONE BOYNTON, LLC BOYNTON BEACH COMMUNITY REDEVELOMENT AGENCY By: Print Name Title: Date: Witnesses: Approved as to form and legal sufficiency: CRA Attorney 00751286-3 Print Name: Steven B. Grant Title: Chair Date: Witnesses: PURCHASE AND DEVELOPMENT AGREEMENT Page 13 of 21 EXHIBIT "A" LEGAL DESCRIPTION LOTS 1 AND 2, EXCEPT THE EAST 25.00 FEET THEREOF AND EXCEPT THE WEST 25.00 FEET THEREOF, AS SHOWN UPON THE PLAT ENTITLED "AGREEMENT PLAT", SHOWING PROPERTY IN THE NORTHWEST QUARTER (N.W. 1/4) OF THE NORTHWEST QUARTER (N.W. 1/4) OF SECTION 27, TOWNSHIP 45 SOUTH, RANGE 43 EAST, IN THE TOWN OF BOYNTON BEACH, FLORIDA, WHICH PLAT IS RECORDED IN THE OFFICE OF THE CLERK OF THE CIRCUIT COURT IN AND FOR PALM BEACH COUNTY, FLORIDA, IN PLAT BOOK 10, PAGE 2; LESS RIGHT OF WAY CONVEYED TO THE STATE OF FLORIDA, AS MORE PARTICULARLY DESCRIBED IN OFFICIAL RECORD BOOK 564, PAGE 180, PUBLIC RECORDS OF PALM BEACH COUNTY, FLORIDA; SAID LANDS SITUATE LYING AND BEING IN PALM BEACH COUNTY, FLORIDA. SUBJECT TO RESTRICTIONS, RESERVATIONS, EASEMENTS AND COVENANTS OF RECORD, IF ANY, TO THE EXTENT THAT SAME ARE VALID AND ENFORCEABLE. DESCRIPTION: (TAKEN FROM SPECIAL WARRANTY DEED DATED OCTOBER 3, 1960 IN OFFICIAL RECORD BOOK 564, PAGE 180) LOTS 1 AND 2, AGREEMENT PLAT, ACCORDING TO THE PLAT THEREOF AS RECORDED IN PLAT BOOK 10 AT PAGE 2 OF THE PUBLIC RECORDS OF PALM BEACH COUNTY, FLORIDA; BEING ALSO DESCRIBED AS LOTS 1 AND 2, FUNK BROS. ADDITION PER PLAT BOOK 2, PAGE 13; WHICH LIES WITHIN 50.00 FEET EASTERLY OF THE WEST LINE OF SECTION 27, TOWNSHIP 45 SOUTH, RANGE 43 EAST; _►e THAT PART OF THE AFOREMENTIONED LOT 1 OF AGREEMENT PLAT, WHICH IS INCLUDED IN THE EXTERNAL AREA FORMED BY A 12 FOOT RADIUS ARE TANGENT TO THE NORTH LINE OF SAID LOT (BEING 15.00 FEET SOUTH OF AND PARALLEL TO THE NORTH LINE OF SAID SECTION 27), AND TANGENT TO A LINE 50.00 FEET EAST OF AND PARALLEL TO THE WEST LINE OF SAID SECTION 27. SUBJECT TO THE EXISTING RIGHT-OF-WAY FOR STATE ROAD 5; SAID PARTS CONTAINING 0.062 OF AN ACRE, MORE OR LESS. _►e LESS AND EXCEPT ADDITIONAL ROAD RIGHT OF WAY FOR N.E. 2ND AVENUE, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF LOT 1, AGREEMENT PLAT, ACCORDING TO THE PLAT THEREOF, AS RECORDED IN PLAT BOOK 10, PAGE 2 OF THE PUBLIC RECORDS OF PALM BEACH COUNTY, FLORIDA: THENCE RUN SOUTH 89 DEGREES 45'09" EAST ALONG THE NORTH LINE OF SAID LOT 1, A DISTANCE OF 37.28 FEET TO A POINT ON THE SOUTH RIGHT OF WAY LINE OF N.E. 2ND AVENUE AS NOW LAID OUT AND THE POINT OF BEGINNING; THENCE CONTINUE SOUTH 89 DEGREES 45'09" EAST ALONG SAID SOUTH RIGHT OF WAY LINE AND ALONG THE NORTH LINE OF LOT 1, A DISTANCE OF 254.12 FEET TO A POINT ON THE WEST RIGHT OF WAY LINE OF N.E. 6TH COURT AS NOW LAID OUT; THENCE RUN SOUTH 01 DEGREES 23'56" EAST, ALONG SAID WEST 00751286-3 PURCHASE AND DEVELOPMENT AGREEMENT Page 14 of 21 RIGHT OF WAY LINE, A DISTANCE OF 54.89 FEET TO A POINT OF CURVATURE, CONCAVE TO THE NORTHWEST SAID CURVE HAVING A RADIAL BEARING OF SOUTH 88 DEGREES 36' 04" WEST; THENCE RUN ALONG THE ARC OF SAID CURVE TO THE LEFT A DISTANCE OF 40.02 FEET TO THE POINT OF TANGENT, SAID CURVE HAVING A RADIUS OF 25.00 FEET, A CENTRAL ANGLE OF 91 DEGREES 42'50", A CHORD BEARING OF NORTH 47 DEGREES 15'21" WEST AND A CHORD DISTANCE OF 35.88 FEET; THENCE RUN SOUTH 86 DEGREES 53'14" WEST, A DISTANCE OF 41.94 FEET TO A POINT; THENCE RUN NORTH 76 DEGREES 26'58" WEST, A DISTANCE OF 50.34 FEET; THENCE RUN NORTH 89 DEGREES 45'09" WEST, A DISTANCE OF 129.70 FEET TO A POINT OF CURVATURE CONCAVE TO THE SOUTHWEST; THENCE RUN ALONG THE ARC OF SAID CURVE TO THE LEFT A DISTANCE OF 31.87 FEET TO A POINT ON THE EAST RIGHT OF WAY LINE OF STATE ROAD NO. 5 (FEDERAL HIGHWAY) AS NOW LAID OUT; SAID CURVE HAVING A RADIUS OF 20.00 FEET, A CENTRAL ANGLE OF 91 DEGREES 17'55", A CHORD BEARING OF SOUTH 44 DEGREES 35,53" WEST AND A CHORD DISTANCE OF 28.60 FEET; THENCE RUN NORTH 01 DEGREES 03,04" WEST ALONG SAID EAST RIGHT OF WAY LINE A DISTANCE OF 29.69 FEET TO A POINT OF CURVATURE TO THE NORTHEAST; THENCE RUN ALONG THE ARC OF SAID CURVE TO THE RIGHT A DISTANCE OF 19.12 FEET TO THE POINT OF BEGINNING, SAID CURVE HAVING A RADIUS OF 12.00 FEET, A CENTRAL ANGLE OF 91 DEGREES 17'55", A CHORD BEARING OF NORTH 44 DEGREES 35,54" EAST AND A CHORD DISTANCE OF 17.16 FEET. 00751286-3 PURCHASE AND DEVELOPMENT AGREEMENT Page 15 of 21 EXHIBIT "B" SPECIAL WARRANTY DEED 00751286-3 PURCHASE AND DEVELOPMENT AGREEMENT Page 16 of 21 RECORD & RETURN TO; Gary S. Dunay, Esq. Dunay, Miskel and Backman, LLP 14 SE 41' Street, 436 Boca Raton, FL 33432 Property Control No. SPECIAL WARRANTY DEED This Indenture, made this day of , Between Boynton Beach Community Development Agency, a public agency created pursuant to Chapter 163, Part III of the Florida Statutes, having a mailing address of 710 N. Federal Highway, Boynton Beach, FL 33432, Grantor and , a having a mailing address of 1629 K Street, NW Suite 1200, Washington, DC 20006, Grantee. WITNESSETH, that the Grantor for and in consideration of the sum of TEN DOLLARS ($10.00) and other good and valuable consideration to Grantor in hand paid by Grantee, the receipt whereof is hereby acknowledged, has granted, bargained and sold to the said Grantee and Grantee's heirs, successors and assigns forever, the following described land, situate, lying and being in the County of Palm Beach, State of Florida (the "Property"), to wit: SEE EXHIBIT "A" ATTACHED HERETO The Property conveyed herein is subject to the following restriction: The Property set forth on Exhibit "A" shall be included with the adjacent property already owned by Grantee as referenced on Exhibit "B" and together are hereinafter collectively referred to as the "Project". Grantee shall diligently and continuously undertake commercially reasonable efforts to obtain site plan approval for the Project from the City of Boynton Beach, Florida. Grantee shall commence construction for the development of the Project within twenty- four (24) months from the date of the recording of a resolution or development order from the City of Boynton Beach, Florida approving the site plan for the Project (the "Construction Commencement Period"). In the event Grantee fails to commence construction for the development of the Project as provided in the Purchase and Development Agreement attached as Exhibit "C," attached hereto and made a part hereof by reference., Grantee shall be obligated to commence construction of a public plaza (the "Plaza") on the Property containing benches, walkways, landscaping, irrigation and lighting in accordance with the provisions of Exhibit "C." 00751286-3 PURCHASE AND DEVELOPMENT AGREEMENT Page 17 of 21 Notwithstanding the foregoing, if at any time thereafter, Grantee commences development of the Project in accordance with the site plan approved by the City of Boynton Beach, Grantee may abandon construction of, or demolish the construction of the Plaza in order to construct the Project. Once the Project has been substantially completed, this restriction shall terminate and be of no further force or effect. TOGETHER with all tenements, hereditaments and appurtenances thereto belonging or in anywise appertaining. TO HAVE AND TO HOLD the same in fee simple forever. AND the Grantor hereby covenants with said Grantee that Grantor is lawfully seized of said land in fee simple; that Grantor has good right and lawful authority to sell and convey said land; that Grantor hereby fully warrants the title to said land and will defend the same against the lawful claims of all persons claiming by, through or under Grantor. IN WITNESS WHEREOF, the Grantor has hereunto set his hand and seal the day and year first above written. Signed, sealed and delivered in the presence of - Witness 41 Signature Witness 41 Printed Name Witness 42 Signature Witness 42 Printed Name STATE OF FLORIDA COUNTY OF PALM BEACH Boynton Beach Community Development Agency By: Name: Title: The foregoing instrument was acknowledged before me this day of by , as of Boynton Beach Community Development Agency, who is personally known to me or who produced a driver's license as identification. Notary Public 00751286-3 PURCHASE AND DEVELOPMENT AGREEMENT Page 18 of 21 1*:1:11-311111i1_11 LEGAL DESCRIPTION OF PROPERTY LOTS 1 AND 2, EXCEPT THE EAST 25.00 FEET THEREOF AND EXCEPT THE WEST 25.00 FEET THEREOF, AS SHOWN UPON THE PLAT ENTITLED "AGREEMENT PLAT', SHOWING PROPERTY IN THE NORTHWEST QUARTER (N.W. 1/4) OF THE NORTHWEST QUARTER (N.W. 1/4) OF SECTION 27, TOWNSHIP 45 SOUTH, RANGE 43 EAST, IN THE TOWN OF BOYNTON BEACH, FLORIDA, WHICH PLAT IS RECORDED IN THE OFFICE OF THE CLERK OF THE CIRCUIT COURT IN AND FOR PALM BEACH COUNTY, FLORIDA, IN PLAT BOOK 10, PAGE 2; LESS RIGHT OF WAY CONVEYED TO THE STATE OF FLORIDA, AS MORE PARTICULARLY DESCRIBED IN OFFICIAL RECORD BOOK 564, PAGE 180, PUBLIC RECORDS OF PALM BEACH COUNTY, FLORIDA; SAID LANDS SITUATE LYING AND BEING IN PALM BEACH COUNTY, FLORIDA. SUBJECT TO RESTRICTIONS, RESERVATIONS, EASEMENTS AND COVENANTS OF RECORD, IF ANY, TO THE EXTENT THAT SAME ARE VALID AND ENFORCEABLE. DESCRIPTION: (TAKEN FROM SPECIAL WARRANTY DEED DATED OCTOBER 3, 1960 IN OFFICIAL RECORD BOOK 564, PAGE 180) LOTS 1 AND 2, AGREEMENT PLAT, ACCORDING TO THE PLAT THEREOF AS RECORDED IN PLAT BOOK 10 AT PAGE 2 OF THE PUBLIC RECORDS OF PALM BEACH COUNTY, FLORIDA; BEING ALSO DESCRIBED AS LOTS 1 AND 2, FUNK BROS. ADDITION PER PLAT BOOK 2, PAGE 13; WHICH LIES WITHIN 50.00 FEET EASTERLY OF THE WEST LINE OF SECTION 27, TOWNSHIP 45 SOUTH, RANGE 43 EAST; THAT PART OF THE AFOREMENTIONED LOT 1 OF AGREEMENT PLAT, WHICH IS INCLUDED IN THE EXTERNAL AREA FORMED BY A 12 FOOT RADIUS ARE TANGENT TO THE NORTH LINE OF SAID LOT (BEING 15.00 FEET SOUTH OF AND PARALLEL TO THE NORTH LINE OF SAID SECTION 27), AND TANGENT TO A LINE 50.00 FEET EAST OF AND PARALLEL TO THE WEST LINE OF SAID SECTION 27. SUBJECT TO THE EXISTING RIGHT-OF-WAY FOR STATE ROAD 5; SAID PARTS CONTAINING 0.062 OF AN ACRE, MORE OR LESS. LESS AND EXCEPT ADDITIONAL ROAD RIGHT OF WAY FOR N.E. 2ND AVENUE, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF LOT 1, AGREEMENT PLAT, ACCORDING TO THE PLAT THEREOF, AS RECORDED IN PLAT BOOK 10, PAGE 2 OF THE PUBLIC 00751286-3 PURCHASE AND DEVELOPMENT AGREEMENT Page 19 of 21 RECORDS OF PALM BEACH COUNTY, FLORIDA: THENCE RUN SOUTH 89 DEGREES 45,09" EAST ALONG THE NORTH LINE OF SAID LOT 1, A DISTANCE OF 37.28 FEET TO A POINT ON THE SOUTH RIGHT OF WAY LINE OF N.E. 2ND AVENUE AS NOW LAID OUT AND THE POINT OF BEGINNING; THENCE CONTINUE SOUTH 89 DEGREES 45'09" EAST ALONG SAID SOUTH RIGHT OF WAY LINE AND ALONG THE NORTH LINE OF LOT 1, A DISTANCE OF 254.12 FEET TO A POINT ON THE WEST RIGHT OF WAY LINE OF N.E. 6TH COURT AS NOW LAID OUT; THENCE RUN SOUTH 01 DEGREES 23'56" EAST, ALONG SAID WEST RIGHT OF WAY LINE, A DISTANCE OF 54.89 FEET TO A POINT OF CURVATURE, CONCAVE TO THE NORTHWEST SAID CURVE HAVING A RADIAL BEARING OF SOUTH 88 DEGREES 36' 04" WEST; THENCE RUN ALONG THE ARC OF SAID CURVE TO THE LEFT A DISTANCE OF 40.02 FEET TO THE POINT OF TANGENT, SAID CURVE HAVING A RADIUS OF 25.00 FEET, A CENTRAL ANGLE OF 91 DEGREES 42' 50", A CHORD BEARING OF NORTH 47 DEGREES 15' 21" WEST AND A CHORD DISTANCE OF 35.88 FEET; THENCE RUN SOUTH 86 DEGREES 53' 14" WEST, A DISTANCE OF 41.94 FEET TO A POINT; THENCE RUN NORTH 76 DEGREES 26,58" WEST, A DISTANCE OF 50.34 FEET; THENCE RUN NORTH 89 DEGREES 45'09" WEST, A DISTANCE OF 129.70 FEET TO A POINT OF CURVATURE CONCAVE TO THE SOUTHWEST; THENCE RUN ALONG THE ARC OF SAID CURVE TO THE LEFT A DISTANCE OF 31.87 FEET TO A POINT ON THE EAST RIGHT OF WAY LINE OF STATE ROAD NO. 5 (FEDERAL HIGHWAY) AS NOW LAID OUT; SAID CURVE HAVING A RADIUS OF 20.00 FEET, A CENTRAL ANGLE OF 91 DEGREES 17' 55", A CHORD BEARING OF SOUTH 44 DEGREES 35'53" WEST AND A CHORD DISTANCE OF 28.60 FEET; THENCE RUN NORTH 01 DEGREES 03'04" WEST ALONG SAID EAST RIGHT OF WAY LINE A DISTANCE OF 29.69 FEET TO A POINT OF CURVATURE TO THE NORTHEAST; THENCE RUN ALONG THE ARC OF SAID CURVE TO THE RIGHT A DISTANCE OF 19.12 FEET TO THE POINT OF BEGINNING, SAID CURVE HAVING A RADIUS OF 12.00 FEET, A CENTRAL ANGLE OF 91 DEGREES 17'55", A CHORD BEARING OF NORTH 44 DEGREES 35,54" EAST AND A CHORD DISTANCE OF 17.16 FEET. 00751286-3 PURCHASE AND DEVELOPMENT AGREEMENT Page 20 of 21 EXHIBIT "B" GRANTEE'S EXISTING PROPERTY Lot 41, DEWEY'S SUBDIVISION, according to the Plat thereof, as recorded in Plat Book 1, at Page 37, of the Public Records of Palm Beach County, Florida, less and except the East 25 feet and less and except that part lying within 50 feet of the West line of Section 27, Township 45 South, Range 43 East, Palm Beach County, Florida, and further less and except that part lying within 45 feet of the center line of State Road 804 and also further less and except that part included in the external area of a 10 foot radius arc which is tangent to a line parallel to and 25 feet West of the East line of Lot 41 and to a line parallel to and 45 feet North of the center line of State Road 804; said lands situate, lying and being in Palm Beach County, Florida. Lots 3 through 6, inclusive, FUNK BROTHERS ADDITION, according to the Plat thereof, as recorded in Plat Book 2, at Page 13, of the Public Records of Palm Beach County, Florida, less and except the East 25 feet and the West 50 feet thereof, for Road Rights of Way; said lands situate, lying and being in Palm Beach County, Florida, in accordance with Agreement Plat (Plat Book 10, Page 2). 00751286-3 PURCHASE AND DEVELOPMENT AGREEMENT Page 21 of 21 EXHIBIT "C" THE PLAZA DEVELOPMENT PLAN 00751286-3 ATTACHMENT III AN APPRAISAL OF THE .48 -ACRE VACANT COMMERCIAL PROPERTY LOCATED AT 222 NORTH FEDERAL HIGHWAY IN THE CITY OF BOYNTON BEACH, PALM BEACH COUNTY, FLORIDA FILE NUMBER 15-74029 PREPARED FOR BOYNTON BEACH CRA AS OF DECEMBER 30, 2015 BY STEPHEN D. SHAW, MAI CALLAWAY & PRICE, INC. SOUTH FLORIDA 1410 Park Lane South, Suite 1 Jupiter, FL 33458 561.686.0333 561.686.3705 Fax Michael R. Slade, MAI, SRA, CRE Cert Gen RZ116 mrs@cpwpb.com Stephen D. Shaw, MAI Cert Gen RZ1192 sds@cpwpb.com Robert A. Callaway, MRICS Cert Gen RZ2461 rac@cpwpb.com TREASURE COAST 1803 South 25th Street, Suite 1 Fort Pierce, FL 34947 772.464.8607 1772.461.0809 Fax Stuart: 772.287.3330 Stephen G. Neill, Jr., MAI Cert Gen RZ2480 s.neill@callawayandprice.com CENTRAL FLORIDA 2816 E. Robinson Street Orlando, FL 32803 Phone (321)726-0970 Fax (321)726-0384 Curtis L. Phillips, MAI Cert Gen RZ2085 clp@cpmeLcom SPACE COAST 1146 th Avenue Suite 3 Indialantic, FL 32903 Phone (321)726-0970 Fax (321)726-0384 Curtis L. Phillips, MAI Cert Gen RZ2085 clp@cpmeLcom Callaway & Price, Inc. Real Estate Appraisers And Consultants www.callawayandprice.com Licensed Real Estate Brokers Please respond to the South Florida office E -Mail: sds@cpwpb.com January 5, 2016 Theresa Utterback Development Services Specialist Boynton Beach CRA 710 North Federal Highway Boynton Beach, FL 33435 Dear Ms. Utterback: We have made an investigation and analysis of the .48 -acre vacant commercial property located at 222 North Federal Highway in the City of Boynton Beach, Palm Beach County, Florida. The Subject Property will be further described both narratively and legally within the following Appraisal Report. The purpose of this investigation and analysis was to provide our opinion of the Market Value of the Fee Simple Estate of the Subject Property as of December 30, 2015. This report has been prepared for our client and intended user, Boynton Beach CRA. The intended use is to assist the client for internal decision making. The scope of work performed is specific to the needs of the intended user and the intended use. No other use is intended, and the scope of work may not be appropriate for other uses. Based upon the scope of the assignment, our investigation and analysis of the information contained within this report, as well as our general knowledge of real estate valuation procedures and market conditions, it is our opinion that: The Market Value of the Fee Simple Estate of the Subject Property as of December 30, 2015 was: $460,000 Theresa Utterback Development Services Specialist Boynton Beach CRA January 5, 2016 Page Two A description of the property appraised, together with an explanation of the valuation procedures utilized, is contained in the body of the attached report. For your convenience, an Executive Summary follows this letter. Your attention is directed to the Limiting Conditions and underlying assumptions upon which the value conclusion is contingent. Respectfully submitted, CALLAWAY & PRICE, INC. Stephen D. Shaw, MAI Cert Gen RZ1192 Joe M. Merritt, Associate Appraiser Cert Gen RZ672 SDS/JMM/15-74029 Attachments Executive Summary PROPERTY TYPE : Vacant Commercial Land. LOCATION The Subject Property is located on the southeast corner of North Federal Highway and East Boynton Beach Boulevard in the City of Boynton Beach, Palm Beach County, Florida. The property address is 222 North Federal Highway, Boynton Beach, FL 33435. DATE OF VALUATION DATE OF REPORT PROPERTY DESCRIPTION: December 30, 2015. January 5, 2016. LAND 20,999 square feet or .48 acres. IMPROVEMENTS The Subject Property is currently vacant, cleared, and landscaped with grass. The north and west boundaries are landscaped with trees and shrubs. There are no building improvements. ZONING CBD, Central Business District, by the City of Boynton Beach. LAND USE PLAN MXC, Mixed Use Core, by the City of Boynton Beach. HIGHEST AND BEST USE : Future commercial development. MARKET VALUE OF THE FEE SIMPLE ESTATE OF THE SUBJECT PROPERTY AS OF DECEMBER 30, 2015 $460,000 0 Table of Contents Page No. CERTIFICATION............................................................................................. 1 LIMITING CONDITIONS.................................................................................. 3 DEFINITION OF THE APPRAISAL PROBLEM........................................................9 Purpose, Date of Value, and Interest Appraised .............................................. 9 Intended Use and User of Appraisal............................................................... 9 MarketValue.............................................................................................. 9 LegalDescription...................................................................................... 10 FeeSimple Estate..................................................................................... 11 Hypothetical Conditions............................................................................. 11 Extraordinary Assumptions......................................................................... 11 ExposureTime.......................................................................................... 12 MarketingTime......................................................................................... 12 SCOPEOF WORK......................................................................................... 13 NEIGHBORHOOD DATA................................................................................. 14 PROPERTY DATA.......................................................................................... 17 Location................................................................................................... 17 Zoning..................................................................................................... 17 Land -Use Plan.......................................................................................... 17 Site Size, Shape and Access....................................................................... 18 Easements and Deed Restrictions................................................................ 18 Concurrency............................................................................................. 18 Utilities.................................................................................................... 19 Topography.............................................................................................. 19 CensusTract............................................................................................ 19 FloodHazard Zone.................................................................................... 20 Assessed Value and Taxes.......................................................................... 20 PropertyHistory........................................................................................ 20 Improvements.......................................................................................... 20 HIGHEST AND BEST USE.............................................................................. 21 Conclusion............................................................................................... 21 LAND VALUE ANALYSIS................................................................................ 23 Discussion of Vacant Land Sales................................................................. 24 Conclusion - Land -Value Analysis................................................................ 37 ADDENDA Engagement Letter Qualifications: Stephen D. Shaw, MAI Joe M. Merritt, Associate Appraiser CERTIFICATION We certify that, to the best of our knowledge and belief: Certification 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in the property that is the subject of this report, and we have no personal interest or bias with respect to the parties involved. 4. We have performed services, as an appraiser regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. We previously appraised the Subject Property as of February 26, 2013, our report number 13-68702. 5. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 8. The analyses, opinions, and conclusion were developed, and this report was prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) and The Interagency Appraisal and Evaluation Guidelines, December 10, 2010. 9. Stephen D. Shaw, MAI and Joe M. Merritt have made a personal inspection of the property that is the subject of this report. 10. No one provided significant real property appraisal assistance to the persons signing this certification. 11. The use of this report is subject to the requirements of the State of Florida relating to review by the Florida Real Estate Appraisal Board. 1 Certifications 12. This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. 13. The reported analyses, opinions and conclusions were developed, and this report was prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 14. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 15. As of the date of this report, Stephen D. Shaw, MAI has completed the continuing education program for Designated Members of the Appraisal Institute. Stephen D. Shaw, MAI Cert Gen RZ1192 Joe M. Merritt, Associate Appraiser Cert Gen RZ672 2 0 LIMITING CONDITIONS Limiting Conditions 1. Unless otherwise stated, the value appearing in this appraisal represents the opinion of the Market Value or the Value Defined AS OF THE DATE SPECIFIED. Market Value of real estate is affected by national and local economic conditions and consequently will vary with future changes in such conditions. 2. The value estimated in this appraisal report is gross, without consideration given to any encumbrance, restriction or question of title, unless specifically defined. 3. This appraisal report covers only the property described and any values or rates utilized are not to be construed as applicable to any other property, however similar the properties might be. 4. It is assumed that the title to the premises is good; that the legal description is correct; that the improvements are entirely and correctly located on the property described and that there are no encroachments on this property, but no investigation or survey has been made. 5. This appraisal expresses our opinion, and employment to make this appraisal was in no way contingent upon the reporting of predetermined value or conclusion. 6. No responsibility is assumed for matters legal in nature, nor is any opinion of title rendered. In the performance of our investigation and analysis leading to the conclusions reached herein, the statements of others were relied on. No liability is assumed for the correctness of these statements. 7. Neither all nor any part of the contents of this report (especially any conclusions, the identity of the appraiser or the firm with which he is connected, or any reference to the Appraisal Institute or any of its designations) shall be disseminated to the public through advertising media, public relations media, news media, sales media or any other public means of communication without our prior written consent and approval. 8. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures which would render it more or less valuable. The appraiser assumes no responsibility for such conditions or the engineering which might be required to discover these factors. 3 0 Limiting Conditions 9. Unless otherwise stated in this report, the existence of hazardous substances, including without limitation stachybotrys chartarum (mold), asbestos, polychlorinated biphenyls, petroleum leakage, "Chinese drywall", or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, was not called to the attention of, nor did the appraiser become aware of such during the appraiser's inspection. The appraiser has no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser, however, is not qualified to test for such substances or conditions. If the presence of such substances, such as asbestos, urea formaldehyde foam insulation, or other hazardous substances or environmental conditions, may affect the value of the property, the value estimated is predicated on the assumption that there is no such proximity thereto that would cause a loss in value. We are unaware of very wet conditions that may have existed for days or weeks which are required to grow mold. No responsibility is assumed for any such conditions, nor for any expertise or engineering knowledge required to discover them. 10. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. The appraisers have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since the appraisers have no direct evidence relating to this issue, possible noncompliance with the requirements of ADA in estimating the value of the property has not been considered. 11. Our opinion of value was based on the assumption of competent marketing and management regarding the Subject Property. If there is no competent marketing and management, then the value contained herein may not apply. C! Subject Photos AERIAL VIEWS OF THE SUBJECT PROPERTY 0 Subject Photos LOOKING SOUTHEAST AT THE SUBJECT PROPERTY FROM EAST BOYNTON BEACH BOULEVARD AND NORTH FEDERAL HIGHWAY LOOKING NORTH AT THE SUBJECT PROPERTY FROM NORTH FEDERAL HIGHWAY 0 Subject Photos LOOKING SOUTHEAST FROM THE NORTHWEST CORNER OF THE SUBJECT PROPERTY LOOKING NORTHEAST FROM THE SOUTHWEST CORNER OF THE SUBJECT PROPERTY 0 Subject Photos LOOKING WEST AT THE SUBJECT PROPERTY FROM NE 6T" COURT AND EAST BOYNTON BEACH BOULEVARD LOOKING WEST AT THE SUBJECT PROPERTY FROM NE 6T" COURT n. 0 Definition of the Appraisal Problem DEFINITION OF THE APPRAISAL PROBLEM Purpose, Date of Value, and Interest Appraised The purpose of this investigation and analysis was to provide our opinion of the Market Value of the Fee Simple Estate of the Subject Property as of December 30, 2015. Intended Use and User of Appraisal This report has been prepared for our client and intended user, Boynton Beach CRA. The intended use is to assist the client for internal decision making. The scope of work performed is specific to the needs of the intended user and the intended use. No other use is intended, and the scope of work may not be appropriate for other uses. Market Value "As defined in the Agencies' appraisal regulations, the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: a. Buyer and seller are typically motivated; b. Both parties are well informed or well advised, and acting in what they consider their own best interests; c. A reasonable time is allowed for exposure in the open market; d. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and e. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale." Source: The Interagency Appraisal and Evaluation Guidelines, Federal Register, Volume 75, No. 237, December 10, 2010, Pgs. 61-62. 9 Legal Description _, — ! ! •, _ l Fr a Definition of the Appraisal Problem Aft C,. 25.00 THEREOF` .! F 16,00 MET THE !.. .. 114) (W THE "OMNWEST QUARTER (N.W. 1/4 CW SECTIM 27, TOWNSHIP 40, SOM, RAW 43 IN MRT IN AMC FOR P" KACM CQWrr FtAVM #4 MAT 900K 10. PACE It LM MOW OF WAY PVSUC RECORDS Or PALM 666A mom. nAmAt $00 LAN" MATE I.YI9Q AND BONO IN PAMLA14 +I ! 00CRIPTIOM (TAKEN i ' W WAMAWY ♦ . $, DATED OC709EN:. OFIFICIAL mom ' r. i 1 , r L073 I AND ! r m F woo !. orPALm imm Y t" Y.. . Y .1i 7. As f-.: I BIRDS. ADD" Flit PLAT SOM Z PACE 131 WHICH U63 WIMN 5040 FEET MT9ftr Or THE WEST UNC SECTM TOWNSHIP 00 TMT POT Of THE AFOREMEMORED LOT Of AOREEMENTas 13 IMCWM IN THE VMRNAL AREA PMEP BY A 12L FOOT RADW ASE TANOENT To '"' MoRM UMIE Of SAID L#T (MM ".00 FEET SWT14 t* AND PANUA TO THE NORTH UW Of UD SECTION 27). AND TAIMM TO A LM 50-00 FEET UP OF AM SUOJWT To TK rRICHT—OF-WAYFOR STATE ROAD DPARTS r■ e 0#0U OF AN ACRL mom a::.. LESS AMP EXCEPT ADWMML ROAD WNW ON' WAY FDA NX 9M AVENUE, MOK RAI MM A LY Pt$CMKD AS FOLLOWS! WWWWOO AT MORTIMM COMER Of LOT 1, AOKEMENT KAT. ACCOMMO TO THE MAY THEREDr, AS KCORM IN PtAt 000% Til, rAiX I OF THE MMJC MOM Or PAW KACH COUNTY, FIIIIC * T"I"M I ILI'TII IIO DEOKE3 4W OII' LkST AWN THE NORTH INE Or SOJO LOT 1, A OIA"TAMX OF 37.28 FEET TO All "FIT 04 TIS RIOHT Of WAY LINE Of NX 2ND AY1:HIIE AS NOW LAID OUT AND THE POINT Or gjgt" M"qI TRact eowMUE SOUTH SO OEMM 45' OO" EAST ALONVII SAID SOM RIGHT IN WAY UK AND Mbft THE WMM UNK Of LOT I, A RMAOCE, OF 2SCU FEET M A FORT 0" THE "N IEST RIONT OF WAY LINE OF' III.II:. I11f1 COURT AS HOW (NO WT, TAKE RM 01 MO ES 23' ITE'" EM, AUM SUD WEST 01014T OF WAY Uft, A D13TAWA OF 54.11! FEET TO A POINTW OAVATURL CONCAVE TO THE HOUR*= SAID CURYt HA'M M A iIJ IAS DEAMM Of 'ADU 68 DEMO Se Or weas fit# ALOW THE AM OF SAID CURVE TO THE LEFT A DISTAKE Of 4042 FEET TO THE POINT OF TAOICE07, 'ARID► COOM HAAYINO A RAOM OF 23.00 fErt, A CENTRAL AN" OF' 91 KCREM 42' W, A CN"D OF NMH 47 DEMO jr ,i1" WVV A140 A CHt?ItD DISTANCE OF 35A ; THEME RM 30M O4 OEMES 5V 14" Y A RMAINCE Of 41.94 FEET TO A PMT; THMt RUN NOM" TO MOKES 26' lilt" WEST. AA OWAMX (W 50-M FT T: 10j8 I" d9 f' O ES AV W WET, A MSTANX OF 129.70 FEET TO A POMT OF C llf ATURE YE To THE i THEME RUN AALONO TINE ARC Of SAID CUM TO THIS LEFT A D13TANCIE (W 31.47 FEET TO A POINT ON THE LW ITT OF WAY UNE OF STATE DE AD NI'1. S (FEDERAL H AA') AS NIi1M' IM Ia VTT SAID MM HAVIfIGY AA MIUS OF j0.00 FEET, Alt CEW 11AL. AM0111 If 01 OMIS 17" W, A WARM OF SOM 44 MMES W IM" WEST AND A CHORD ftl'TTANCE Of 26.00 MTi THEM KM MORTH 01 D£GM$ O:r W WEST AALONO &MO EAST RIOW OF WAY UNE A AANCE Of 29,49 FEET TO AA POINT OF CURVATUK TO TW NOWNtM, TL#IT'NCE RUN ALOM THE ARC OF $NO CURVE TTi THE RICK Ask DISTAI Or 117.1E FEEL' TO THE PO4HY Or NOINWOo SII►I1F CURVE HAAYIHO A %ADM OF ILOID SET, A CENTIM A"U OF III DEORM 17' #"" A WORD KARDjQof WWM 44 MM93 moi' 44" CAST AND. A CHORD DISTANCE OF 11.16 FILET. Folio Number 08-43-45-27-02-000-0010. Source: Survey dated 10/12/09 prepared by Richard L. Shephard and Associates drawing number M92-11-061. 10 Definition of the Appraisal Problem Fee Simple Estate The Dictionary of Real Estate Appraisal, Sixth Edition 2015, by the Appraisal Institute, defines Fee Simple Estate on page 90 as follows: "Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat." Hypothetical Conditions The Dictionary of Real Estate Appraisal, Sixth Edition 2015, by the Appraisal Institute, defines Hypothetical Conditions on page 113 as follows: 1. "A condition that is presumed to be true when it is known to be false." 2. "A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis." "Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis." There were no Hypothetical Conditions in the valuation of the Subject Property. Extraordinary Assumptions The Dictionary of Real Estate Appraisal, Sixth Edition 2015, by the Appraisal Institute, defines Extraordinary Assumptions on page 83 as follows: "An assumption, directly related to a specific assignment, as of the effective date of the assignment results, which if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal or economic characteristics of the Subject property; or about conditions external to the property such as market conditions or trends; or about the integrity of data used in an analysis." There were no Extraordinary Assumptions in the valuation of the Subject Property. 11 Definition of the Appraisal Problem Exposure Time The Dictionary of Real Estate Appraisal, Sixth Edition 2015, by the Appraisal Institute, defines Exposure Time on page 83 as follows: 1. "The time a property remains on the market." 2. "The estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. Exposure time is a retrospective opinion based on an analysis of past events assuming a competitive and open market." There is a requirement under Standard Two to report exposure time according to the latest USPAP publication. "Exposure Time" is different for various types of property under different market conditions. We have reviewed the exposure time on the sales contained in the Sales Comparison Approach in this appraisal, as well as other sales and current listings in the market. Based on that data and the current market, it is our opinion that the Subject Property would have had an exposure time of approximately 12 months or less. Marketing Time The Dictionary of Real Estate Appraisal, Sixth Edition 2015, by the Appraisal Institute, defines Marketing Time on page 140 as follows: "An opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of an appraisal." "Advisory Opinion 7 of the Appraisal Standards Board of The Appraisal Foundation and Statement on Appraisal Standards No. 6, "Reasonable Exposure Time in Real Property and Personal Property Market Value Opinions" address the determination of reasonable exposure and marketing time." As in most markets, properties that are priced competitively and marketed professionally will sell before others which are not. We have reviewed the marketing time on the sales used the Sales Comparison Approach of this appraisal, as well as other sales within our database and current listings in the market. Based on these indications, it is our opinion that the Subject should have a marketing time of up to 12 months. 12 0 SCOPE OF WORK Scope of Work According to the 14th Edition of The Appraisal of Real Estate, page 38, "Scope of work encompasses all aspects of the valuation process, including which approaches to value will be used; how much data is to be gathered, from what sources, from which geographic area, and over what time period; the extent of the data verification process; and the extent of property inspection, if any. The scope of work decision is appropriate when it allows the appraiser to arrive at credible assignment results and is consistent with the expectations of similar clients and the work that would be performed by the appraiser's peers in a similar situation." The first step in the appraisal process involved defining the appraisal problem which included the purpose and date of value, determining the interest being appraised, intended use and user of the appraisal, and identifying the real estate (legal description). This step also determined if the appraisal were subject to any extraordinary assumptions or hypothetical conditions. The next step involved inspections of the Subject Property in December 2015 by Stephen D. Shaw, MAI and Joe M. Merritt. The inspections allowed us to understand the physical components of the Subject Property. In addition to the inspections of the Subject Property, we also began the data -collection process and, subsequently, an analysis of the factors that affect the market value of the Subject Property, including a market area analysis, neighborhood analysis, and property data analysis. We gathered and reviewed information from the Palm Beach County Property Appraiser's Office, the City of Boynton Beach Planning and Zoning Departments, our Client, and interviews with brokers and other market participants to understand and describe the Subject Property and its surroundings. The third step in the process was to determine the Highest and Best Use of the Subject Property. Through the Highest and Best Use analysis, we determined the issues that have an effect on the final opinion of value. To determine the Highest and Best Use, we relied on information obtained from the data -collection process. The fourth step was the application of the appropriate approaches for the valuation. No approaches were specifically omitted from this appraisal either by the client or the appraiser. The Subject Property consists of a .48 -acre parcel of vacant land. The most reliable way to estimate land value is by the Sales Comparison Approach. Since only one approach to value was used, no reconciliation is needed. 13 0 NEIGHBORHOOD DATA Preface Neighborhood Data The relationship of the Subject Property with surrounding properties forms the basis of neighborhood analysis. The Appraisal of Real Estate, 14th Edition on page 165 states: "The boundaries of market areas, neighborhoods, and districts identify the areas that influence a subject property's value. These boundaries may coincide with observable changes in land use or demographic characteristics. Physical features such as structure types, street patterns, terrain, vegetation, and lot sizes help to identify land use districts. Transportation arteries (highways, major streets, and railroads), bodies of water (rivers, lakes, and streams), and changing elevation (hills, mountains, cliffs, and valleys) can also be significant boundaries." neignnornooa map The Subject neighborhood is considered to include the eastern portion of the City of Boynton Beach bounded on the north by the Boynton Canal (C-16), on the south by Woolbright Road (SW 15th Avenue), the east by the Intracoastal Waterway and on the west by Interstate 95. The primary north/south traffic arteries through the neighborhood include Federal Highway (U.S. Highway 1), Seacrest Boulevard and Interstate 95. Interstate 95, located approximately one mile west of the Subject Property, is the principal north/south commuter route along the east coast of Florida. U.S. Highway 1, commonly known as Federal Highway in southern Palm Beach County, also spans the length of Florida's East Coast. Seacrest Boulevard, which extends through the center of the neighborhood, is a 4-laned intercity connector joining Boynton Beach with Hypoluxo to the north and Delray Beach to the south. 14 � .. . R�W2'�5rtllb . 9E� d Fwe' E �. ,�SpXia+fl f�t NE F5iU�4e6 Iebs�Aae- '� r 3M ib�F �d A.e � cem)ik[€MxJi T ' Vge"°if0� W LF'4Y VM Rre " " � Nk' •J9Y0 wm `� 6 n re 6r i Ell— Na Whe 4�e x$ A 3n xvt W, NE 5100 UCngN�' be N.Ero� ilEEJ_ w' grh }k ^` t, tlU�i, 4lt3a 1 a mN.u wR ^ARI,*nn Jven JwenI�5l sw , i, cw EE-}nt�t'm YY utM1'W.e 9W 5th Ave � xx our �-� 4eae' s 4 :Z- 4 3 SY,+ n Jule r$W pkv _ g ' W Wen a� yea k. � � "9R�'u'T6rlgffi'kc w�� y� uuvLaeeuvmn ""E'R'u'cmiget H 4 .. 6 'Souln 5wa W 19tlr¢K ` � W p�M1 Povne�9ktl �(�� The Subject neighborhood is considered to include the eastern portion of the City of Boynton Beach bounded on the north by the Boynton Canal (C-16), on the south by Woolbright Road (SW 15th Avenue), the east by the Intracoastal Waterway and on the west by Interstate 95. The primary north/south traffic arteries through the neighborhood include Federal Highway (U.S. Highway 1), Seacrest Boulevard and Interstate 95. Interstate 95, located approximately one mile west of the Subject Property, is the principal north/south commuter route along the east coast of Florida. U.S. Highway 1, commonly known as Federal Highway in southern Palm Beach County, also spans the length of Florida's East Coast. Seacrest Boulevard, which extends through the center of the neighborhood, is a 4-laned intercity connector joining Boynton Beach with Hypoluxo to the north and Delray Beach to the south. 14 Lf. Neighborhood Data The major east/west traffic arteries in the neighborhood are Boynton Beach Boulevard (State Road 804) and Woolbright Road. Both of these thoroughfares have interchanges with Interstate 95. Boynton Beach Boulevard extends westerly to U.S. Highway 441 (State Road 7) and provides access to Florida's Turnpike. Boynton Beach Boulevard effectively ends at North Federal Highway. Ocean Avenue, which is located two blocks south of Boynton Beach Boulevard, is Boynton's Main Street. The Ocean Avenue Intracoastal Waterway Bridge was recently renovated and provides convenient access to the Town of Ocean Ridge and State Road A -1-A. Woolbright Road also has a modern bridge that also provides access to State Road A -1-A and area beaches. Boynton Beach has historically been considered a retirement oriented community. However, the city has grown rapidly over the past several years and the average age of the population has decreased. The Subject neighborhood is nearly 100% built out and has a mixed housing composition, consisting of older single family (some built as early as the 1920's) and multifamily. Commercial development is concentrated along the major thoroughfares previously discussed and consists of a mixture of commercial, retail, restaurant and office buildings. The majority of the commercial type properties within the Subject's immediate area are retail in nature. Like its sister cities of Delray Beach, West Palm Beach and Lake Worth, officials of Boynton Beach have realized that downtown Boynton Beach could be a major asset to the city in general and a redevelopment effort is underway. All of the above cities have had government led redevelopment of their respective downtowns. As a result, property values increased in these areas. Boynton Beach seeks to mirror this success in their city. The City of Boynton Beach started its redevelopment plan of the downtown area with the Promenade Parke and the Marina Village mixed use project. These projects include a marina with boat slips, condominium apartments, street -level commercial and retail shops, a parking garage and boardwalks through the mangroves to the Intracoastal Waterway. Marina Village was completed in 2006 during the peak of the rising real estate market. The project sold out quickly with many units being purchased by investors. However, the real estate market collapsed shortly thereafter resulting in numerous foreclosures and a large inventory of units with no demand. Another large-scale mixed use project called Casa Costa was completed in 2008 at the northeast corner of East Boynton Beach Boulevard and North Federal Highway. This project added an additional 393 condominium apartment units and street -level retail space to the area at the collapse of the real estate market. 15 Lf. Neighborhood Data Construction recently began on a new mixed use project called 500 Ocean located on the southwest corner of Federal Highway and Ocean Avenue. This project will include 341 luxury rental apartments, 13,300 square feet of retail, 6,600 square feet of office space and a 664 -space integrated parking garage. Completion is anticipated to be Fall of 2016. The City of Boynton Beach redevelopment agency's board agreed to fund $4.4 million over a 10 -year period after the project is completed, using taxes created by the project. The City of Boynton Beach and the surrounding area enjoy good community services. Bethesda Memorial Hospital is located on Seacrest Boulevard. Other medical facilities and nursing homes are within a short distance. There are currently 18 churches representing all major denominations within the city limits. The Subject neighborhood has excellent access to public elementary, junior high, and high schools in Boynton Beach, as well as a variety of private and church supported schools in the area. All municipal services, including police and fire protection, public library facilities, garbage and trash collection, are available to most properties within the Subject neighborhood from either the City of Boynton Beach or Palm Beach County. Conclusion Overall the Subject Neighborhood should see extensive redevelopment in the future. Two large mixed-use projects were completed at the peak and/or after the collapse of the real estate market. As a result, there was a significant oversupply of available residential units and retail space. The real estate market has improved and the market activity for redevelopment properties in the neighborhood is increasing. We expect this trend to continue and that redevelopment will resume as the real estate market improves and the supply of available residential units and retail space diminishes. 16 0 PROPERTY DATA Location Property Data The Subject Property is located on the southeast corner of North Federal Highway (U.S. Highway 1) and Boynton Beach Boulevard in the City of Boynton Beach, Palm Beach County, Florida. The property address is 222 North Federal Highway, Boynton Beach, FL 33435. Location ria Zoning The Subject Property is zoned CBD, Central Business District, by the City of Boynton Beach. The purpose of the CBD zoning district is to implement the mixed use (MX) and mixed use core (MX -C) future land use map (FLUM) classification of the Comprehensive Plan. The intent of this conventional district is to provide a highly visible community focal point integrating office, retail, and residential uses concentrated in the historic downtown and marina district. In addition, this district is considered the predecessor to the urban mixed use zoning districts, particularly, the mixed use -high intensity district. The uses allowed in the central business district are intended to serve the entire community, create a high volume of pedestrian activity, provide business, recreation, and residential opportunities, and maximize the potential of the waterfront. Setbacks are zero feet on the front and interior side, 20 feet to the rear and 8 feet on the corner. Land -Use Plan The Subject Property is designated MXC, Mixed Use Core, by the City of Boynton Beach, which is consistent with the current zoning. 17 m s NL W lr Y NF 7�A,e t ,' R �e e' E I — tf .sh ,fie .�h SNa MVN�,uv /+ NE: JfF.'re �� tN! 9vq h FroaV ". INE i+Ne �%{laA' d NE3L A:z r, hkh-a.e � ruvibttl Ave NE. � 4 NCsl3n 1 ' Ad M1v�C1 t�� ( we SeF rme 3eE Arn e .� Vi 3i „v .yNn°cex� 9Po i ...........�: iiFd fi�_ _. .. ma llP Efl�+�i IIeaz�6W Y —1 v a e m � 4ucvtu w A It a§ b d ' NW Ist .ite it � �:: n� isl ArL s _ a • . � _ � .e.z C G..e y E psein A.e py z 4 m W Rtu 1 All 4 SE.EaJ 1. ;. ! { m roe airs E H s, t 't i�SW Ma _ v S1lL.e0 Mx .�C3 tlA m n t'�d .� e _ � � r y iv4'1 41h Flsq SEA A.e .... 4 t e t sE _ „w fith Zoning The Subject Property is zoned CBD, Central Business District, by the City of Boynton Beach. The purpose of the CBD zoning district is to implement the mixed use (MX) and mixed use core (MX -C) future land use map (FLUM) classification of the Comprehensive Plan. The intent of this conventional district is to provide a highly visible community focal point integrating office, retail, and residential uses concentrated in the historic downtown and marina district. In addition, this district is considered the predecessor to the urban mixed use zoning districts, particularly, the mixed use -high intensity district. The uses allowed in the central business district are intended to serve the entire community, create a high volume of pedestrian activity, provide business, recreation, and residential opportunities, and maximize the potential of the waterfront. Setbacks are zero feet on the front and interior side, 20 feet to the rear and 8 feet on the corner. Land -Use Plan The Subject Property is designated MXC, Mixed Use Core, by the City of Boynton Beach, which is consistent with the current zoning. 17 0 Site Size, Shape and Access Property Data The Subject property has an irregular shape and contains 20,999 square feet or .48 acres. The site has frontage on and exposure to North Federal Highway, Boynton Beach Boulevard and N.E. 6th Court. However, due to the small size, narrow shape and proximity to a signalized major intersection, physical access is only available from the east via N.E. 6th Court. ,-•�� EftT9F "- � fi f^4 a 7 m DOYNTON BEACH. BOULEVAM I (WE 2ND AVENUE) ------------- _---- 9e" `� a t�➢ 21 __ q EU oao neo sof zxa RE._o �sa*^t� �� Emn r OCEAN AVENUE -'- a"w o ww. w zw x«N.....o'n R, c ep0 L 5H PH A6 MD ASSUL AiES •:•w i .84� •'xm ... iaW2 III�o6s Easements and Deed Restrictions We have not been provided a title search for the Subject Property. Based upon our review of the survey and public records, the Subject Property has no obvious adverse easements or deed restrictions. Concurrency In 1985, the Florida Legislature enacted the Local Government Comprehensive Planning and Land Development Regional Act (Chapter 163, Part II, Florida Statutes), commonly referred to as "The Growth Management Act". O: Property Data In 2011 the state legislature rescinded this law, and now each county can address almost all of these factors as they wish. Sanitary sewer, solid waste, drainage, and potable water are the only public facilities and services subject to the concurrency requirement on a statewide basis. If concurrency is applied to other public facilities, the local government comprehensive plan must provide the principles, guidelines, standards, and strategies, including adopted levels of service, to guide its application. In order for a local government to rescind any optional concurrency provisions, a comprehensive plan amendment is required. An amendment rescinding optional concurrency issues is not subject to state review. To the best of our knowledge, we are not aware of any concurrency issues with the Subject Property. Utilities FPL and AT&T provide electrical and telephone services to the area. Public water and sewer service is provided by the City of Boynton Beach. Topography The Subject site is level and at the approximate grade of the adjacent roads. Our on-site inspection revealed no obvious signs of drainage problems. Census Tract The Subject Property lies within Census Tract 0061.00. Adclress:� 222 N FEDERALr MSA' 48424 - WEST PALM BEACH-BOCA RATON-DELRAY BEACH, FL FLORIDA County: 099 - PALM BEACH COUNTY Tract Co0061 00 Tract Income Level Low Underserved or Distressed Tract No 2015 FFIED Estimated MSA/MD/non-MSA/MD Median Family Income 2015 Estimated Tract Median Family Income $64,900 $29,346 2010 Tract Median Family Income Tract Median Family Income % $29,145 45.22 Tract Population 3726 Tract Minora °l Tract Minority Population 76.06 2634 ,Owner -Occupied Units 1910 1- to 4- Family Units 11459 19 0 Flood Hazard Zone Property Data The Subject Property lies within Flood Zone "B", according to the Flood Insurance Rate Map (Panel Number 120196 0003 C) prepared for the National Flood Insurance Program of the U.S. Department of Housing and Urban Development (HUD.). Flood Zone "B" includes "areas between limits of the 100 -year flood and 500 -year flood; or certain areas subject to 100 -year flooding with average depths less than one (1) foot or where the contributing drainage area is less than one square mile; or areas protected by levees from the base flood". Assessed Value and Taxes The 2015 assessed value for the Subject Property is as follows: Folio Number 08-43-45-27-02-000-0010 2015 Market Value Land Improvements $532,716 $0 2015 Assessed 2015 Total Value Taxes $532,716 $514,457 $0 Since the Subject Property is under public ownership, there are no real estate taxes. Property History It should be noted that this office has not performed a title search, nor has a title search been provided. According to the Palm Beach County Public Records, the Subject Property has been under the ownership of Boynton Beach Community Redevelopment Agency for more than five years. To our knowledge, the Subject Property was not listed for sale or under contract as of the appraisal date. Improvements The Subject Property is currently vacant, cleared, and landscaped with grass. The north and west boundaries are landscaped with trees and shrubs. There are no building improvements. 20 0 HIGHEST AND BEST USE Highest and Best Use The Dictionary of Real Estate Appraisal, Sixth Edition 2015, by the Appraisal Institute defines Highest and Best Use on page 109 as follows: 1. "The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity." 2. "The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset's existing use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid. (IVS)" 3. "The highest and most profitable use for which the property is adaptable and needed or likely to be needed in the reasonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions)." To estimate the Highest and Best Use of the Subject, we have considered those uses which are legally permissible, physically possible, financially feasible, and maximally productive. Consideration was given to individual features of the land such as size, shape, location, access to roadways, and the availability of utilities. Consideration was also given to the surrounding land uses and the demand for property in the current real estate market. Conclusion It is our opinion that the Highest and Best Use of the Subject Property is for future commercial development. The reasons for this conclusion are as follows: Legally Permissible The Subject Property is zoned for commercial development by the City of Boynton Beach. It lies within an area designated for mixed use (commercial and residential) by the City of Boynton Beach Future Land Use Plan. Physically Possible The Subject Property consists of .48 acres located on the high -traffic intersection of North Federal Highway and Boynton Beach Boulevard. The site has frontage on and exposure to North Federal Highway, Boynton Beach Boulevard and N.E. 6th Court. However, due to its small size, narrow shape and proximity to a signalized major intersection, physical access is available only from the eastern boundary via N.E. 6th Court. In addition, its relatively small size and narrow shape significantly restrict the future commercial 21 0 Highest and Best Use development potential and flexibility. Due to these factors, it is our opinion that the development potential of the Subject Property would be greatly increased if done so in conjunction with the adjacent property. Financially Feasible During the residential housing boom, numerous properties were purchased along the Federal Highway corridor for mixed use redevelopment. However, the real estate market collapsed along with the national economy and the demand for redevelopment properties ceased. Vacant land prices declined drastically between 2006 and 2008. The rate of decline decreased during 2009 and began to stabilize in 2010. The market activity for redevelopment properties has increased during the past two years and land values appear to be stable at this time. We expect this trend to continue as the real estate market improves and redevelopment becomes feasible again. In our opinion, development of this site could be considered at this time as the market continues to improve. Maximally Productive It is our opinion that the maximum productivity of the Subject could be realized with future commercial development. The adjacent property owner would be the most likely purchaser. 22 Land Value Analysis LAND VALUE ANALYSIS According to the 14th Edition of The Appraisal of Real Estate on page 44, the valuation of land begins by identifying the real estate and property rights valued, any encumbrances, use restrictions, and the land's physical characteristics. An appraiser can use several techniques to obtain an indication of land value: • Sales Comparison • Extraction • Allocation • Subdivision Development • Land Residual • Ground Rent Capitalization Usually the most reliable way to estimate land value is by sales comparison. When few sales are available, however, or when the value indications produced through sales comparison need additional support, procedures like extraction or allocation may be applied. In the case of the Subject Property the only approach used was the sales comparison approach. Sales Comparison Approach In order to estimate the value of the Subject Property, a search was made for recent sales of vacant land within the Subject's market area. Our search was concentrated on small vacant commercial properties located in the eastern portion of the City of Boynton Beach close proximity to the Federal Highway corridor. We analyzed the Subject Property and the comparables on a price per square foot of land area basis, which is the most common unit of comparison used by participants in the market for this property type. All of the comparables were considered with regard to property rights appraised, financing, conditions of sale, time or market conditions, location, size, site quality and main road exposure. 23 Land Value Analysis Discussion of Vacant Land Sales Our search revealed five sales of properties purchased for redevelopment that were considered to be suitable for direct comparison to the Subject. As shown below, the comparable sales indicated non -adjusted values ranging from $14.88 to $24.06 per square foot. Vacant Land Sales Callaway & Price, Inc. #15-74029 Sale Number Subject 1 2 3 4 5 Record ID Number 9056 9055 8499 8500 8501 ORBK/PG 27636/849 27562/1854 26638/879 26546/1 26486/1926 Effective Sale Price $130,000 $4,710,000 $345,000 $550,000 $700,000 Size - Acres 0.48 0.20 4.52 0.33 0.74 1.06 Size - Sq.Ft. 20,999 8,736 196,766 14,337 32,069 46,337 Price Per Sq.Ft. $14.88 $23.94 $24.06 $17.15 $15.11 Southeast corner of North side of Southwest Northwest Northwest East side of North Federal East Ocean corner corner of corner of East North Federal Location Highway and Avenue, 60 e South Federal North Federal Ocean Avenue Highway East Boynton feet east of Highway and Highway and and the FEC between NE Beach NE 3rd Street East Ocean NE 1st Avenue Railroad 4th and 6th Boulevard Avenue Avenues City Boynton Boynton Boynton Boynton Boynton Boynton Beach Beach Beach Beach Beach Beach Date of Sale 3un-15 May -15 Feb -14 Dec -13 Dec -13 Date of Value Dec -15 Zoning CBD C2 MU -H CBD C2 CBD Conditions of Sale 0% -10% 0% 0% 0% Market Condition Adj. 0% 10% 5% 5% 5% Adjusted Price Per Sq.Ft. $14.88 $23.94 $25.27 $18.01 $15.86 Physical Adjustments Location 0% 0% 0% 0% 20% Size 0% 0% 0% 0% 0% Site Quality 0% 0% -10% 0% 0% Main Road Exposure 25% 0% 0% 25% 10% Total Ph sicalAd'ustment 25% 0% -10% 25% 30% Adjusted Price Per Sq. t. 18.60 $23.94 $22.74 $22.51 20.62 Low $18.60 High $23.94 Average $21.68 24 Land Value Analysis Vacant Land Sales Map CopyrtgI© and (F) 1988— 2012 Microsoft Corporation and/or its supplier, All nglts reserved.-Up//www.microsoft. comistreets/ Certain mapping and direction data 02012 NAVTEQ. All rights reserved. The Data for areas of Canada includes information taken with permission from Canadian authorities, indud ing: O Her Majesty the Queen in Right of Canada, O Queen's P enter for Ontano. NAVTEQ and NAVTEQ ON BOARD are trademarks of NAVTEQ. O 2012 Tele Atlas North America, Inc_ All rights reserved. Tde Atlas and Tele Atlas North America are trademarks of Tele Atlas, Inc. © 2012 byApplied Geographic Solutions. All rights reserved. Portions© Copyright 2012 by W oodall Publications Corp_ All rights reserved 25 Land Value Analysis Land Sale No. 1 Property Identification Record ID Property Type Address Location Tax ID Legal Description Sale Data Grantor Grantee Sale Date Deed Book/Page Recorded Plat Property Rights 9056 Commercial, Vacant Land 405 East Ocean Avenue, Boynton Beach, Palm Beach County, Florida 33435 North side of East Ocean Avenue, 60 feet east of NE 3rd Street 08-43-45-28-03-005-0080 Lots 8 & 9, less E 30', Block 5, Town of Boynton Robert F. Katz, III, PR & Arthur B. D'Almeida, PR East Ocean Avenue, LLC June 24, 2015 27636/849 PB 11 Pg 23 Fee Simple 26 Conditions of Sale Financing Sale Price Land Data Zoning Topography Utilities Land Use Plan Land Size Information Gross Land Size Front Footage Indicators Sale Price/Gross Acre Sale Price/Gross SF Land Sale No. 1 (Cont.) Arm's length Cash to seller $130,000 C2, Neighborhood Commercial All upland with mature trees All available Local Retail Commercial 0.201 Acres or 8,736 SF East Ocean Avenue $648,214 $14.88 Land Value Analysis Remarks This property was purchased for investment purposes and future redevelopment in conjunction with adjacent properties. 27 Land Value Analysis Land Sale No. 2 Property Identification Record ID Property Type Property Name Address Location Tax ID Legal Description Sale Data Grantor Grantee Sale Date Deed Book/Page Property Rights 9055 Mixed use, Vacant Land 500 Ocean 500 East Ocean Avenue, Boynton Beach, Palm Beach County, Florida 33435 Southwest corner of East Ocean Avenue and South Federal Highway 08-43-45-28-03-007-0010 Lengthy Capstone Resdev, LLC Skye At Boynton Beach, LLC May 26, 2015 27562/1854 Fee Simple Lf. Land Value Analysis Land Sale No. 2 (Cont.) Conditions of Sale Arm's length Financing Cash to seller Sale Price $4,710,000 Land Data Zoning MU -H, Mixed Use -High Density Topography Cleared, all upland and useable Utilities All available Shape Rectangle Land Use Plan Mixed Use Core Land Size Information Gross Land Size 4.517 Acres or 196,766 SF Front Footage South Federal Highway; Ocean Avenue Indicators Sale Price/Gross Acre $1,042,698 Sale Price/Gross SF $23.94 Remarks This property was under contract for approximately 2 years while approvals were being obtained. The site is being developed with a mixed use project called 500 Ocean. It will include 341 luxury rental apartment units, 13,300 square feet of retail, 6,600 square feet of office space and a 664 -space integrated parking garage. Construction has begun and the anticipated completion date is Fall 2016. The City of Boynton Beach will participate funding $4.4 million over a 10 -year period after the project is completed, using taxes created by the project. 29 Land Value Analysis Land Sale No. 3 Property Identification Record ID Property Type Address Location Tax ID Legal Description Sale Data Grantor Grantee Sale Date Deed Book/Page Recorded Plat Property Rights 8499 Commercial, Vacant Land 209 North Federal Highway, Boynton Beach, Palm Beach County, Florida 33435 Northwest corner of North Federal Highway and NE 1st Avenue 08-43-45-28-03-001-0121 E1/2 of Lot 12, Lot 13 & 14 less 10 feet, Block 1, Original Town of Boynton Kalbro Properties, Inc. 209 N. Federal, LLC February 19, 2014 26638/879 PB 11 Pg 23 Fee Simple 30 Conditions of Sale Financing Sale Price Land Data Zoning Topography Utilities Land Use Plan Land Size Information Gross Land Size Front Footage Indicators Sale Price/Gross Acre Sale Price/Gross SF Land Sale No. 3 (Cont.) Arm's length Cash to seller $345,000 CBD, Central Business District Previously improved All available Local Retail Commercial 0.329 Acres or 14,337 SF North Federal Highway; NE 1st Avenue $1,048,211 $24.06 Land Value Analysis Remarks This property was purchased for investment purposes and future redevelopment. It was improved with a 59 -year old office building containing 1,035 square feet at time of sale. The buyer is renting the building until redevelopment occurs. It is currently used for an ice cream parlor called The Boardwalk Italian Ice & Creamery. 31 Land Value Analysis Land Sale No. 4 Property Identification Record ID Property Type Address Location Tax ID Legal Description Sale Data Grantor Grantee Sale Date Deed Book/Page Recorded Plat Property Rights Conditions of Sale 8500 Commercial, Vacant Land 413 East Ocean Avenue, Boynton Beach, Palm Beach County, Florida 33435 Northwest corner of East Ocean Avenue and the Florida East Coast Railroad 08-43-45-28-03-005-0040, 0091 & 0100 Lots 4-6 & 9-11, Block 5, Town of Boynton 417 East Ocean Avenue LLC 206 Boynton LLC December 27, 2013 26546/1 PB 11 Pg 23 Fee Simple Arm's length 32 Financing Sale Price Land Data Zoning Topography Utilities Land Use Plan Land Size Information Gross Land Size Front Footage Indicators Sale Price/Gross Acre Sale Price/Gross SF Land Sale No. 4 (Cont.) Cash to seller $550,000 C2, Neighborhood Commercial Previously improved All available Local Retail Commercial 0.736 Acres or 32,069 SF East Ocean Avenue; NE 3rd Street $747,077 $17.15 Land Value Analysis Remarks This property was purchased for investment purposes and future redevelopment in conjunction with adjacent properties. It consists of two parcels, one fronting East Ocean Avenue and one fronting NE 3rd Street. 33 Land Value Analysis Land Sale No. 5 Property Identification Record ID Property Type Address Location Tax ID Legal Description Sale Data Grantor Grantee Sale Date Deed Book/Page Property Rights Conditions of Sale 8501 Commercial, Vacant Land 512-600 North Federal Highway, Boynton Beach, Palm Beach County, Florida 33435 East side of North Federal Highway between NE 4th and 6th Avenues 08-43-45-22-05-000-0010 & 002-0010 Lots 1-3, Block 2, Civic Center & Lots 1-6, R.S. Merritt's Boynton Beach Property Partners, LLC St. Mark's Square, LLC December 03, 2013 26486/1926 Fee Simple Arm's length 34 Land Value Analysis Land Sale No. 5 (Cont.) Financing Cash to seller Sale Price $700,000 Land Data Zoning CBD, Central Business District Topography Previously improved Utilities All available Land Use Plan Mixed Use Land Size Information Gross Land Size 1.064 Acres or 46,337 SF Front Footage North Federal Highway; NE 4th Avenue; NE 6th Avenue Indicators Sale Price/Gross Acre $658,049 Sale Price/Gross SF $15.11 Remarks This property was purchased for investment purposes and future commercial development. 35 Lf. Land Value Analysis Property Rights Transferred and Terms of Financing All the comparables in this analysis involved the transfer of a Fee Simple Estate basis, with the buyers receiving full property rights ownership. We are also unaware of any adverse deed restrictions or any other property rights limitations which would have affected the sales. Therefore, no adjustment was considered necessary for property rights conveyed. The transaction price of one property may differ from that of a similar property due to atypical financing arrangements. In a case where favorable financing is established, a cash equivalency adjustment is often necessary. However, all of the sales analyzed herein involved either market terms or cash to Grantor. Therefore, no adjustments were made, nor any cash equivalency performed. Conditions of Sale Adjustments for conditions of sale usually reflect the motivations of the buyer and seller at the time of conveyance. Within the confirmation process, detailed attention was made to ensure the conditions of each sale. The majority of the sales required no adjustments for conditions of sale. Sale 2 was purchased for a new project that is being partially funded by the City of Boynton Beach and this appears to have had an effect on the price paid for the land. Therefore, we have made a downward conditions of sale adjustment to Sale 2 for this factor. Time or Changes in Market Conditions Market conditions generally change over time and may be caused by inflation, deflation, fluctuations in supply and demand, or other factors. The sales occurred from December 2013 to June 2015. Overall, market conditions have improved since the earliest sale date and we have adjusted Sales 3, 4 and 5 upward for this factor. We have also adjusted Sale 2 upward as it was originally contracted 2 years prior to its closing, while approvals were being obtained. Sale 1 was considered to be representative of the current market. Location The Subject Property is considered to have a good location for future commercial development at the corner of Federal Highway and Boynton Beach Boulevard in downtown Boynton Beach. The majority of the Sales are similar to the Subject being located in the City of Boynton Beach Core redevelopment area between East Boynton Beach Boulevard and East Ocean Avenue. Sale 5, which is located four blocks just north of the Subject, but out of the Core area, was considered to have an inferior location compared to the Subject and an upward adjustment was applied for this factor. 36 Lf. Land Value Analysis Size The Subject Property contains .48 acres. The sales range in size from .20 acres to 4.52 acres. It is typical in real estate for a small site to sell at a higher price per square foot than a large site, when all other characteristics are equal. However, for this property type, the adjustment is off -set due to the fact that the development flexibility increases as the size increases. This is evidenced by this data set in that the smallest property (Sale 1) sold for the lowest price per square foot and the largest property (Sale 2) sold for the highest price per square foot. Therefore, no size adjustments were applied to the sales. Site Quality The Subject Property is considered to have adequate site quality for future commercial development being all upland and useable. While it is somewhat long and narrow, the limited setbacks would permit a wide variety of uses. The majority of the comparables were considered to be generally similar to the Subject at to overall site quality and no adjustments were made for this factor. Sale 3, which was improved with a small building at time of sale that is being rented until redevelopment occurs, received a downward site quality adjustment for this factor. Main Road Exposure The Subject Property is located on the signalized corner of two main roads and has a high degree of exposure. This corner is the main corner in downtown Boynton Beach. Sales 1 and 4 are located on East Ocean Avenue west of Federal Highway, which is a secondary road, and upward adjustments were applied for this factor. Sale 5 has frontage on North Federal Highway but not on a high -traffic corner and an upward adjustment to a lesser degree was made for this factor. Sales 2 and 3 have main road frontage similar to the Subject and no adjustments were necessary. Conclusion - Land -Value Analysis As can be seen on the chart displayed earlier, the comparable sales indicated an adjusted range from $18.60 to $23.94 per square foot of land area with an average of $21.68 per square foot. All of the comparables sales were considered to provide reasonable value indications for the Subject Property and were given approximate equal weight in reaching our final value conclusion. Therefore, it is our opinion that the Subject Property had a Market Value of approximately $21.00 to $23.00 per square foot as of December 30, 2015 or $460,000 as calculated below. 20,999 Sq.Ft. X $21.00 Per Sq.Ft. _ $440,979 20,999 Sq.Ft. X $23.00 Per Sq.Ft. _ $482,977 Say $460,000 37 ADDENDA ENGAGEMENT LETTER SOUTHFLORIDA 1410 Park Lane South, Suite 1 Jupiter, FL 33458 561.686.0333 1561.686,3705 Fax Michael R, Slade, MAI, SRA, CRE Cart Gert RZ116 rnrs9cpwpb.com Stephen D. Shaw, MAI Cert Gen RZ1192 sd5@cpwpb.carn Robert A. Cailawayr MRICS Cert Gen RZ2461 raC:Wcpwpb.com 1RFASLIRI COAST 1803 South 25' Street, Suito 1 Fort Plerc% FL 34947 772.454.86071772.461.0809 Fax Stuart: 772.287.333D Stephen G. Neill, Jr., MAI Cert Gen 872490 s.nei II@callawayandprice.com CENTRAL FLORIDA 2816 E. Robinson Street Orlando, FL 32803 Phone (321)726-0970 Fax (321)726-D384 Curtis L. Phillips, MAI Cert Gen RZ2035 clp@Cpmel.cor€r SPACE COAST 114 6' Avenue suite 3 Indlalantic, FL 32903 Phone (321)726-0970 Fax (321)726.0384 Curtis L. Phillips, MAI Cert Gen RZ2085 cip@cpmel.com Callaway & Price, Inc, Real Estate Appraisers And Consultants www.callawayandprice.com Licensed Real Estate Brokers Please respond to the South Florida office E -Mail: sds0cpwpb,com December 14, 2015 Theresa Utterback Development Services Specialist Boynton Beach CRA 710 North Federal Highway Boynton Beach, FI_ 33435 Dear Ms. Utterback. We would be pleased to prepare an appraisal report on the vacant site located at 222 North Federal Highway In Boynton Beach, Florida, It is our understanding that the purpose of the appraisal is to estimate the Market Value of the Fee Simple Estate. This report will be prepared for our client and intended user, Boynton Beach CRA. The intended use Is to assist the client for Internal decision making. The scope of work performed is specific to the needs of the intended user and the intended use. No other use is intended, and the scope of work may not be appropriate for other uses. The fee would be $1,900. The fee is due and payable upon delivery of the report. We will provide a PDF of the final report and a hard copy upon request. We will have the report completed in approximately 3 1/2 weeks from the day we receive your authorization. Theresa Utterback Development Services Specialist Boynton Beach CRA December 4, 2015 Page Two Public Records The Boynton Beach Community Redevelopment Agency is public agency subject to Chapter 119, Florida Statutes. The Contractor shall comply with Florida's Public Records Law. Specifically, the Contractor shall: 1. Keep and maintain public records that ordinarily and necessarily would be required by the CRA in order to perform the service; 2. Provide the public with access to such public records on the same terms and conditions that the GRA would provide the records and at a cost that does not exceed that provided in chapter 119, Fla. Stat., or as otherwise provided by law; 3. Ensure that public records that are exempt or that are confidential and exempt from public record requirements are not disclosed except as authorized by law; and 4. Meet all requirements for retaining public records and transfer to the CRA, at no cost, all public records in possession of the contractor upon termination of the contract and destroy any duplicate public records that are exempt or confidential and exempt. All records stored electronically must be provided to the City in a format that is compatible with the information technology systems of the agency. The failure of Contractor to comply with the provisions set forth in this agreement/contract shall constitute a Default and Breach of this Agreement. If Contractor fails to cure the default within seven (7) days' notice from the CRA, the CRA may terminate the Agreement. Theresa Utterback Development Services Specialist Boynton Beach CRA December 4, 2015 Page Three If the above is agreeable to you, please sign below as our authorization and return it so that we may begin work immediately. This agreement is subject to the Agreements and Conditions listed on the attached pages, a copy of which should also be signed and returned to us. Our work will be done in accordance with the Appraisal Institute Cotte of Ethics and Standards of Professional Practice. Thank you for the opportunity to be of service. Respectfully submitted, CALLAWAY & PRICE, INC. Stephen D. Shaw, MAI Cert.Gen. RZ1192 SDS/js Attachments Client: Accepted By\Date: Date Name and Title (Printed or Typed): Client Fed ID# or SS#: Boynton Beach CRA Si nature VIVIn tv Yee 01 _ � X73 ,.. ConditionsofAgreement A:R 1. Premise: The completed report shall comply with the professional and ethical standards of the Appraisal Institute. The report will be addressed to the Client, or, as directed by the Client. 2. Compensation: The fee is due and payable as designated in the contract letter; the retainer is to be sent to the Appraiser along with the signed contract letter, which constitutes authorization to commence the assignment. The Appraiser's/Consultant's compensation is in no event contingent upon a predetermined value or conclusion. 3. Completion, ©ate: Every effort will be made to deliver the report as per the specified date in the contract letter, If delays occur for reasons beyond the control of the Appraiser/Consultant, such as not receiving necessary data requested from the Client in a timely manner, changes in the scope of services of the assignment, acts of God, et cetera, the due date shall be extended. 4. Changes: The Appraiser/Consultant shall, to the best of his ability, complete the assignment in compliance with professional and ethical standards of the appraisal industry. Changes which are not in keeping with these standards will necessitate a new contract letter and renegotiation of the original fee; or billed on a time basis plus the original fee. 5. Cancellation: This agreement may be cancelled by the Client by written notice, or telephone followed by written notice. Appraiser/Consultant shall submit a statement based on professional time and expenses accrued, if applicable, for all services expended to the date of cancellation. 6. Additional Report Copies: Additional copies will be furnished upon request, and prepayment of $1 per page per report. 7. Collection: All fees and expenses are due upon delivery of the final report. A late charge of 1.5% per month shall be imposed on balances unpaid 30 days after the statement date. If collection efforts become necessary, all costs for same, including court costs and attorney's fees will be added to the balance due. We are currently operating under an agreement with a collection agency which charges us 53.8%. IF THEIR COLLECTION SERVICES ARE REQUIRED, CLIENT'S TOTAL BALANCE DUE WILL BE INCREASED BY 53.8%. 8. Limitina Conditions: This agreement and the completed report shall be subject to the attached Limiting Conditions (also included in said report). -i v�1 w- ss�. Conditions pppp Agreement 9. Confidential Data: Data assembled for the assignment will remain the property of the Appralser/Consultant. Data provided by the Client will be held in file, unless otherwise instructed by the Client, and considered confidential. Appraiser/Consultant is authorized by the Client to disclose the report to appropriate representative of the Appraisal Institute to comply with the Bylaws and regulations of this professional organization. T hereby agr to the Conditions of Agreement outlined above. Client's Name Da ateof Acceptance Limiting Conditions 1. Unless otherwise stated, the value appearing in this appraisal represents the opinion of the Market Value or the Value Defined AS OF THE DATE SPECIFIED. Market Value of real estate is affected by national and local economic conditions and consequently will vary with future changes in such conditions. 2. The value estimated in this appraisal report is gross, without consideration given to any encumbrance, restriction or question of title, unless specifically defined. 3. This appraisal report covers only the property described and any values or rates utilized are not to be construed as applicable to any other property, however similar the properties might be. 4. It is assumed that the title to the premises is good; that the legal description is correct; that the improvements are entirely and correctly located on the property described and that there are no encroachments on this property, but no investigation or survey has been made. 5. This appraisal expresses our opinion, and employment to make this appraisal was in no way contingent upon the reporting of predetermined value or conclusion. 6. No responsibility is assumed for matters legal in nature, nor is any opinion of title rendered. In the performance of our investigation and analysis leading to the conclusions reached herein, the statements of others were relied on. No liability is assumed for the correctness of these statements; and, in any event, the appraiser's total liability for this report is limited to the actual fee charged. 7. Neither all nor any part of the contents of this report (especially any conclusions, the identity of the appraiser or the firm with which he is connected, or any reference to the Appraisal Institute or any of Its designations) shall be disseminated to the public through advertising media, public relations media, news media, sales media or any other public means of communication without our prior written consent and approval. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures which would render it more or less valuable. The appraiser assumes no responsibility for such conditions or the engineering which might be required to discover these factors. `Limiting Conditions 9. Unless otherwise stated in this report, the existence of hazardous substances, including without limitation stachybotrys chartarum (mold), asbestos, polychlorinated biphenyls, petroleum leakage, "Chinese drywall" or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to the attention of, nor did the appraiser become aware of such during the appraiser's Inspection. The appraiser has no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser, however, is not qualified to test for such substances or conditions. If the presence of such substances, .such as asbestos, urea formaldehyde foam Insulation, or other hazardous substances or environmental conditions, may affect the value of the property, the value estimated is predicated on the assumption that there is no such proximity thereto that would cause a loss in value. We are unaware of very wet conditions that may have existed for days or weeks which are required to grow mold. No responsibility is assumed for any such conditions, nor for any expertise or engineering knowledge required to discover them. 16. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. The appraiser has not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act, If so, this fact could have a negative effect upon the value of the property. Since the appraiser has no direct evidence relating to this issue, possible noncompliance with the requirements of ADA in estimating the value of the property has not been considered. QUALIFICATIONS �G Qualifications — Stephen.D. Shave, MAZ Professional Desi nations Licenses Certifications Member, Appraisal Institute, MAI Designation #10461 Florida State -Certified General Appraiser RZ1192 Florida State Licensed Real Estate Salesman 0495422 Professional Experience Principal, Callaway & Price, Inc., since January 1999 Senior Appraisal Consultant, Callaway & Price, Inc., since July 1997 — December 1998 Appraisal Consultant, Callaway & Price, Inc., since April 1994 Associate Appraiser, Pinel & Carpenter, Inc., Orlando, April 1992 - March 1994 Appraiser/Researcher, Callaway & Price, Inc., September 1987 - March 1992 Special Magistrate Palm Beach County since 1996 Special Magistrate, Martin County, 2009 Qualified as an Expert Witness Palm Beach County, Florida Martin County, Florida Broward County, Florida Sarasota County, Florida Education Bachelor of Science Degree, Business Administration, Major in Real Estate and Finance, University of Florida Appraisal Institute: Course 101 - An Introduction to Appraising Real Property, 1992 Course 201 - Principles of Income Producing Properties, 1991 Course 2-1 - Case Studies in Real Estate Valuation, 1992 Course 540 - Report Writing and Valuation Analysis, 1993 Course 2-3 - Standards of Professional Practice Parts A & B, 1991 Numerous seminars sponsored by the Appraisal Institute Appra isingWonsulting _Expertise Acreage AC LFs Apartment Complexes Automotive Service Facilities Bowling Alleys Commercial Buildings Condominium Projects Eminent Domain Golf Courses Hotels Marinas Mini -Warehouses Office Buildings Office/Warehouses Retail Buildings Restaurants Special Purpose Properties Shopping Centers Vacant Commercial Land Vacant Industrial Land Vacant Multifamily Pods Vacant Residential Land Vacant Single -Family Subdivisions Warehouses uaiifications -- Ste ►ren ®. Shag MAI Organizations and Affiliations Appraisal Institute; Experience Review Committee Ethics & Counseling Committee South Florida Chapter Board of Directors Business Development Board Palm Beach County, Member STATE OF FLORIDA - DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD 850-487-1395 1940 N. MONROE ST. TALLAHASSEE FL 32399-0783 SHAW, STEPHEN DAY 733 SE MICHAELS COURT STUART FL 34996 Congratulations) With this license you become one of the nearly one= Floridians licensed by the Department of Business and Professional Regulation. Our professionals and businesses range from architects to yacht brokers, from boxers to barbeque restaurants, and they keep Florida's economy strong. Every day we work to improve the way we do business In order to serve you belter. For Information about our services, please log onto www.myflortdalicense.com. There you can find more information about our divisions. and the regulations that impact you, subscribe to department newsletters and learn more about the Department's Initiatives. Our mission at the Department is: License Efficiently, Regulate Fairly. We constantly strive to serve you better so that you can serve your customers. Thank you for doing business in Florida, and congratulations on your new license) DETACH HERE Qualifications - Joe M. Merritt Professional Desi nations Licenses Certifications Florida State -Certified General Real Estate Appraiser, RZ672 Professional Experience Staff Appraiser, First Federal Savings & Loan Association of Delray Beach, 1977-1982 Associate Appraiser, Callaway & Price, Inc., since September 1982 Qualified As An Expert Witness Circuit Court of Palm Beach County, Florida Education Florida Real Estate Commission, Course 1, 1977 Appraisal Institute: Course 101 - An Introduction to Appraising Real Property, 1978 Course 201 - Principles of Income Property Appraising, 1978 Narrative Report Writing Seminar & R-2 Examination, 1978 Course 1A-1 - Real Estate Appraisal Principles, 1987 Course 1A-2 - Basic Valuation Procedures, 1987 USPAP Core Law for Appraisers, 1994 Appraisal Review, 1994 Numerous Continuing Education Courses and Seminars by: Appraisal Institute Gold Coast Professional Schools Bert Rodgers Schools McKissock Appraisal School South Florida Water Management District Appraising\Consulting Expertise Agricultural Land Marinas Automobile Dealerships Office Buildings Civic Sites Regional Malls Commercial Buildings Retail Buildings Condominium Projects Self Storage Facilities Eminent Domain Shopping Centers Environmentally Sensitive Lands Sovereignty Submerged Land Gas Stations/Convenience Stores Special Purpose Properties Golf Courses Commercial Land Market/Feasibility Studies Industrial Land Warehouses Residential Land STATE Or FLORIDA ' Y DEPARTIVIENT OF BUSINESS AND PROFESSIONAL REGULATION �F FLORIDA REAL ESTATE APPRAISAL BD 850-487-1395 map 1940 N. MONROE ST. TALLAHASSEE FL 32399-0783 MERRITT, JOE M 509 CHAPEL HILL BOULEVARD BOYNTON BEACH FL 33435 Congratulations! With this license you became one of the nearly one million Floridians licensed by the Department of Business and Professional Regulation. Our professionals and businesses range from architects to yacht brokers, from boxers to barbeque restaurants, and they keep Florida's economy strong. Every day we work to improve the way we do business in order to serve you better. For information about our services, please log onto www.myfloridalleense.com. There you can find more information about our divisions and the regulations that impact you, subscribe to department newsletters and learn more about the Department's initiatives. Our mission at the Department is: License Efficiently, Regulate Fairly. We constantly strive to serve you better so that you can serve your customers. Thank you for doing business in Florida, and congratulations on your new licensel DETACH HERE RICK SCOTT, GOVERNOR KEN LAWSON, SECRETARY STATE OF.FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD RZ672 rhe r��`ri�i�n r��ni��ai eoor�n�e��r r CRA BOARD MEETING OF: May 9, 2017 1 Consent Agenda IX I Old Business I I New Business I I Legal I I Information Only CRAAB AGENDA ITEM: XIII.B. SUBJECT: Consideration of the Letter of Intent from St. John's Missionary Baptist Church for the purchase of the CRA owned property located at 700 N. Seacrest Boulevard, also known as the Ocean Breeze East Site SUMMARY: At the April 11, 2017 CRA Board meeting, St. John's Missionary Baptist Church and Roundstone Development, LLC, presented the terms of their Letter of Intent for the Purchase of the CRA owned Ocean Breeze project site located at 700 N. Seacrest Boulevard (see Attachment 1). After review and discussion of the item, the Board approved the release of the statutorily required thirty (30) day Public Notice to Dispose of the property and requested more detailed financials and project detail be submitted by the development team (see Attachment 11). The required thirty (30) day Public Notice to Dispose period ends on May 15, 2017. BACKGROUND: On March 30, 2017, the CRA received a Letter of Intent (LOI) from St. John's Missionary Baptist Church, in a partnership with Roundstone Development, LLC, for the purchase and development of the CRA owned property located at 700 N. Seacrest Boulevard, a/k/a the Ocean Breeze Project site (see Attachment III). St. John's Missionary Baptist Church is located at 900 N. Seacrest Boulevard within the CRA Redevelopment Plan's Heart of Boynton District and has been part of the community for 109 years. St. John's LOI describes their interest in developing a 108 unit affordable rental apartment community comprised of 1 & 2 bedrooms combined with a Family Life Center with a tropical swimming pool, fitness center, basketball and volleyball gymnasium, business center, multipurpose rooms, catering kitchen and a 5,000 square foot grocery store on the site. In addition to their project description, St. John's has submitted three different financial options for the purchase of the property and the physical development of the previously described project components proposed on the site. Financing Option 1- Use of a HUD 221(d)(4) loan, tax-exempt bonds from the Palm Beach County Housing Finance Authority, a request for $1 million in CRA funding and purchase of the site for $10 plus various fee credits and waivers. Financing Option 2- Use of a 9% Low Income Housing Tax Credit award, a request for $1 million in CRA funding and purchase of the site for $800,000 plus various fee credits and waivers. Financing Option 3- Use of a 4% SAIL loan, tax-exempt bonds from the Palm Beach County Housing Finance Authority, a request for $1 million in CRA funding and purchase of the site for $10 plus various fee credits and waivers. 7r - Yi�F' n BN� to {±BEC 111 CRA Regardless of which financing option used, the partnership will provide affordable housing under the following guidelines: 10% of the units will be rented to those at 33% of median area household income and 90% of the units will be rented to those at 60% of median area household income. The proposal states that preference will be given to the hiring of local minority contractors and multiple job fairs will be held to solicit employees. FISCAL IMPACT: To be determined CRA PLAN/PROJECT/PROGRAM: 2016 CRA Redevelopment Plan — Heart of Boynton District (pages 105-117) CRAAB RECOMMENDATION: Recommends acceptance of the Letter of Intent from St. John's Missionary Baptist Church and recommends Board approval for Option 1 Financing CRA BOARD MOTION/OPTIONS: To be determined Digitally signed by Michael Simon Michael Simon eDIN m cn=Michael Simon, o, ou, email=simonm@bbfl.us, c=US Date: 2017.05.05 15:07:36 -04'00' Michael Simon, Interim Executive Director ATTACHMENT .... . ... �,, To. Michael Simon, Executive Director, Boynton Beach Community Redevelopment Agency, and Boynton Beach Community Redevelopment Board Members ?E"L Ll F OUT WT 17`0 r T& I LY I I TV M -UT I I W: If boundary as Seacrest Blvd., the east boundary as 1" St., and the north boundary as NE 71 Ave., and the south boundary as behind the apartments on NE 61 Ave. 11111TINIO rill 1 oll I IT Mt; W T I E #7 7t T I T;ZT. W 11 9 -=*4 - 7 ro T iT4 0• MM# -I r- 7 W I N F. 01 [ Ms ri7 #-14 " 4 AI 74 8 isill-W47*31R, MIZVMI" 111 LV ?e—ly �3 "U, Mecis -1 ---U—WW1U-.1 L I?" center, multipurpose rooms and a catering kitchen, combined with.2 5000 sq. ft. Grocery store. 6 r i A WILL: J. A required by the FHFC to put up a $1 Million community cornmitment before the application for the 9% tax credits is submitted in the fall. However, the commitment will not have to be funded by the CRA until construction of the city based on past applications. This partnership will provide affordable housing using the following FHFC guidelines - 10% of the units at 33% of area median income and 90% of units at 60% of area median income. The partnership will give preferences to minority local subcontractors and host multiple job fairs for minority district 2 residents at the RM Lee Educational Complex located on the St. John campus. The partnership will have an art feature approved by the city's arts commission that will be valued at 1 % of the building cost. Our preference will be to use artists from District 2. �k-o-u-na-sUn-e--f,eveiopmen% LLU is a ionai eve or W117 a pi-flen SO gin Palm Beach County and throughout the Sunbelt of the United States. Their most recent success is in Delray Beach partnering with the Delmy Beach Housing Authority on a project located at 12t' Ave and 10& St. 4 WIWI,) "MR.W., MW cenelyl-,. Rev. Jovan Davis, P&►St. John's Missionary Baptist Church ReacblllitW, ne,& emabk Willie Gib4iAi Chairman of Deacons - St. John Missionary Baptist Church In HAm we have redemptfon through His bbod, Howard Brown Chairman of TrusteesJohn Missionary Baptist Church Me ftwolmneve of I%ft, according to Me Michael Hartman Develiv' r - `ii ti Develozyment. LLC Achm of Hft gmn - E0. 1:7 1, 'a I v" nm Much 29, 2017 To: Michael Simon, Executive Director, Boynton Beach Community Redevelopment Agency, and Boynton Beach Community Redevelopment Board Members From: The St. John Missionary Baptist Church Re: Letter of Interest in the CRA owned site known as Ocean Breeze East. C I boundary as Seacrest Blvd., the east boundary as 11 St., and the north boundary as NE 71 Ave., and the south boundary as behind the apartments on NE 61 Ave. St. John Missionary Baptist Church, in a partnership with Roundstone Development, is interested in acquiring the land ti develop it with 108 Affordable Apartments comprised of 1 & 2 bedroom apartments, combined with a Famfly LiI Center featuring a :Nmmasium �basketball and business center, multipurpose rooms and a catering kitchen, combined with a 5000 sq. fL Grocery store. This would be financed using a SAIL Loan from the Florida Housing Finance Corporation (FWC) and Tax — Exempil Bonds from the Palm Beach County HFA, a community investment of $1 Million, utility credits and impact fees waivers and the land provided to the partnership at a cost of $ 10.00. This partnership will provide allordable housing using the following FHFC guidelines - 10% of the units at 33% of area moI incorff e uld 90% of units 1-# 60% of &-ra incow.c. The partnership will give preferences to minority local subcontractors and host multiple job fairs for minority district 2 residents at the RM Lee Educational Complex located on the St. John campus. The partnership will have an art feature approved by the city's arts commission that will be valued of the building cost. Our preference will be to use artists from District 2. R.oundstone Development LLC is a national developer with a proven record of developing quality, affordable housing in Flalm Beach County and throughout the Sunbelt of the United States. Their most recent success is in Delray Beach fIartrrering with the Delray Beach Housing Authority on a project located at 121 Ave and 101h St. 0300�� mml= C Rev. Jov,11' Davis, Pastor — St. John's Missionary Baptist Church I Willie Gr)ib��, n Chairman of Deacons — St. John Missionary Baptist Church, Howard Brown Chairman of Trustees — St. John Missionary Baptist Church . . .... 7t(e R, edtr e, a b1!,, Michael Hartman Developer — Roundstone Development, LLC. In Him we have mdempdan through His bWd, the k1ghenew ofains, nowifflng to the dcheadHis grace -Eph. 1:7 March 29, 2017 To: Mchaci Simon, Executive Director, Boynton Beach Community Redevelopment Agency, and Boynton Beach Community Redevelopment Board Members MM 10M I I I I I I I I I I I I I I I! I I I I I I I I I I I I I I I I I I I I I III I I I I I I ��1111111 III St. John Missionary Baptist Church is submitting this letter of interest for the Ocean Breeze East site located with the west boundary as Seacrest Blvd., the east boundary as 1" St., and the north boundary as NE r Ave., and the south boundary as behind the apartments on NE 61h Ave. St. John Missionary Baptist Church, in a partnership with Roundstone Development, is interested in acquiring the land to develop it with 108 Affordable Apartments comprised of 1 & 2 bedroom apartments, combined with a Family Life Center featuring a tropical swimming Pool, state of the art fitness center, gymnasium (basketball and volleyball), business center, multipurpose rooms and a catering kitchen, combined with a 5000 sq. ft. Grocery store. This would be financed using a SAEL, Loan from the Florida Housing Finance Corporation (FBFC) and Tax — Exempt Bonds from the Palm Beach County HFA, a community investment of $1 Mon, utty credits and impact fees waivers and the land provided to the partnership at a cost of $10-00. f IreELM es - I �00/6 of the u�nitsat 3 �3% of �mea olio, median income and 90%o units at 61%oarea median income. The partnership will give preferences to minority local subcontractors and host multiple job fairs for minority district 2 residents at the RM Lee Educational Complex located on the St. John campus. The partnership will have an art feature approved by the city's arts commission that will be valued at 1% of the building cost. Our preference will be to use artists from District 2. St. John Missionary Baptist church has been a pillar of the city for 109 years with over 1,000 members. is a national develq�er with a proven record of developing quality, affordable housing in Palm Beach County and throughout the Sunbelt of the United States. Their most recent success is in Delray Seach partnering with the Delray Beach Housing Authority on a project located at 121 Ave and 1 O'k St. e our letter of interest and allow us to come back in 120 days so that staff can develop a purchase and development agreement. E'1,, Va Davis", Pastor — St. John's Missionary Baptist Church Willie N,. n C ' of Deacons — St. John Missionary Baptist Church, Howard Brown Chairnian of Trustees — St. John Missionary Baptist Church Michael Hartman Developer — Roundstone Development, LLC in Hkn we have mdampthn through ccomiHis bbod, ths tomwmw of sins, ang to dw rkhas of His graw - Eph. 1:7 ATTACHMENT II From: Simon, Michael To: Nicklien, Bonnie Subject: FW: LOIS for Ocean Breeze East site - Document Request Form Date: Friday, May 05, 2017 10:43:44 AM Attachments: Roundstone StJohn LOI document reouest 050117.pdf imaae415203.12na imaae378516.pna image161430.pna imaae754341.pna imaae975936.12na imaae420611.pna Nr'rchaeV Surnon h-Aerurn Fxec ru Jve D'rector C.R.A. Boynton Beach Cornrn unrty RedeveVoprnent Agency 71..6 N. FederaV Hwy. � Boynton Beach, Horuda 33435 561-666-6661.. � 561..-737-3258 Sur:roroM@bbfV.rus B-oU:tP://ww .catc:-oboyrotoro.cor:i America's Gateway to the Gulfstream Nease be advsed that Horuda has a broad pubhc rewards Vag° and aH correspondence to me Grua ernaH may be subject to &sc Vosrure.Under Horuda records Vary°, ernarl addresses are pubhc rewards. -f herefore, your e- rnaH cornrn urf catU on and your e- rnaH address may be subject to pubhc d'usc Vosrure. From: Simon, Michael Sent: Monday, May 1, 2017 8:36 AM To:'mm1370@aol.com' <mm1370@aol.com>;'Guarn' <gsims06@aol.com> Cc: 'ma rkka rageorge @comcast. net' <ma rkka rageorge @comcast. net>; 'pastor@stjohnmbc.com' <pastor@stjohnmbc.com>;'fcpace@aol.com' <fcpace@aol.com>;'wood rowhay@msn.com' <woodrowhay@msn.com>; Utterback, Theresa<UtterbackT@bbfl.us>;'roundstone@rstdev.com' <roundstone@rstdev.com>;'krossmell@llw-law.com' <krossmell@llw-law.com>; Bonnie Nicklien (NicklienB@bbfl.us) <NicklienB@bbfl.us> Subject: LOIS for Ocean Breeze East site - Document Request Form Good morning Guarn and Michael: Attached please find the CRA's requested document form. The form should be completed by each Development Team Member which in this case is Roundstone Development, LLC and St. John's Missionary Baptist Church. The list of documents and information being requested is standard and typical for the CRA's Request for Proposal and Letter of Intent processes. These documents may be submitted at your convenience and will be reviewed by staff when received. As the CRA Board review process continues, this information will become part of the LOI packet. If you have any questions or need any additional information, please do not hesitate to contact me directly. i OCEAN BREEZE EAST PROJECT Hard copies of all materials listed below must be provided to the CRA for review and approval by the CRA Board. Development Team Members shall mean: St. John Missionary Baptist Church and Roundstone Development, LLC — individually, not collectively. 1. List of personnel that will work on the Project from each Development Team Member, along with, their professional qualifications and resumes. 2. A written general statement from each Development Team Member of its qualifications, including examples of experience with similar projects, as well as background information on the principals. 3. Copies of Roundstone Development LLC's annual report or SEC filings, as appropriate. 4. Copy of each Development Team Member's commercial lease agreement, if any, or proof of property ownership at the location the Development Team Member is current licensed to do business. 5. Three years of corporate tax returns for each Development Team Member. 6. A program description of how the Development Team Members (collectively) will attempt to utilize local residents, qualified contractors and sub -contractors in the development, construction, operation and management of the proposed project. 7. Authorization to Perform Credit Check for each Development Team Member. The Authorization must be executed by the appropriate officer of each Development Team Member's corporation. Authorization is attached. 00807422-1 8. Proof that each Development Team Member is properly licensed by all necessary levels of government and professional associations or agencies, such as copies of- • City of Boynton Beach Business Tax Receipt • Palm Beach County Business License • Any other licenses, including Federal licenses, the Development Team Member is required to have in order to do business in the State of Florida • Registrations of any type that the Development Team Member is required to have in order to do business in the State of Florida • Any other licenses, registrations, or similar authorizations required by any governmental or licensing entity to perform the type of work proposed for the project. 9. Most current development and operating pro forma. The development pro forma shall include and clearly identify the cost of land acquisition from the Boynton Beach CRA along with any proposed funding assistance being requested of the Boynton Beach CRA. 10. If the project is proposed or may be proposed to use Low -Income Tax Credits or other project based subsidies for affordable housing, the appropriate Development Team Member must demonstrate extensive experience with obtaining such project -based subsidies for affordable housing by listing projects and the amount and type of subsidy utilized. 11. A preliminary commitment letter from a credible State or Federal lending institution to fund the proposed affordable housing development project. 12. Proof of each Development Team Members' financial capability to fund any costs associated with the development of the proposed affordable housing project prior to the construction or the permanent loan funding such as pre - construction costs, design costs, financial due diligence (including any required loan/finance application fees or any fees associated with securing financial assistance for the project). 00807422-1 I. r DEVELOPMENT TEAM MEMBER ORGANIZATION INFORMATION: Corporation/Business/Organization Name (D/B/A if applicable): Current Business/Organization Address: Fed I D# Website: Number of years in existence: Time at Current Location: Type of Business/Organization: Number of Employees: Fax: Hours of Operation: Are you receiving grant assistance from any other governmental agencies: Yes No If yes, list any additional grant sources and amounts: 00807422-1 PRINCIPAL/OWNER INFORMATION: (If more than 4 principals/owners additional sheets may be used.) 1. Principal/Owner Name: Current Home Address: Email: Phone #: 2. Principal/Owner Name: Current Home Address: Email: 3. Principal/Owner Name: Current Home Address: Email: 4. Principal/Owner Name: Current Home Address: Phone #: Email: Phone #: 00807422-1 ■ Authorization to Perform Credit Check I, as of hereby consents to and authorizes the Boynton Beach Community Redevelopment Agency's ("CRA") investigation into the credit worthiness of (name of business/organization). Such consent and authorization is given with respect to any and all persons who may conduct an investigation of the applicant's credit worthiness on behalf of the CRA, including independent contractors and credit agencies retained by the CRA for such purpose. Any information provided to the CRA is a public record subject to the provisions of Ch. 119 F.S. Such consent and authorization to the CRA for the period commencing as of the date of this authorization and terminating on the date CRA funding has been fulfilled. This applicant hereby waives any and all claims, past present or future, which the applicant may have against the CRA by reason of any credit investigation made pursuant to applicant's consent and authorization herein given to the CRA. An authorization to Perform Credit Check needs to be completed by each Principal/Owner and by the Business/Organization. For Business/Organization: Business/Organization Name (D/B/A if applicable): Current Business/Organization Address: Federal Tax I D# State of Incorporation: Phone #I: Fax#: Signature: Date: Title: 00807422-1 ADDITIONAL LANGUAGE • This is to notify you that the Boynton Beach CRA will perform a lien search on the properties which the Development Team Member owns within the City of Boynton Beach on which it conducts business to ensure that the property does not have any outstanding code liens, violations or monies owed for utilities the CRA. In the event that an Applicant has an outstanding City of Boynton Beach lien against the property, the Boynton Beach CRA will require proof of the complete satisfaction of the lien. • Applicants are encouraged to take advantage of the City of Boynton Beach's PACE Program to help defer the cost of installing energy efficient items above. Information regarding the PACE Program is available on line at http://www.boynton-beach.org/go- green/pace program.php or by contacting the City at 561-742-6067 00807422-1 From: Michael Hartman [mailto:mm1370@aol.com] Sent: Thursday, April 27, 2017 1:33 PM To: Simon, Michael <SimonM@bbfl.us>; gsims06@aol.com; Katz, Justin <KatzJr@bbfl.us> Cc: markkarageorge@comcast.net; pastor@stjohnmbc.com; fcpace@aol.com; woodrowhay@msn.com; Utterback, Theresa <UtterbackT@bbfl.us>; roundstone@rstdev.com Subject: CRA Payments Michael, I just wanted to follow up on a few things we discussed on Monday. Yes, the loan period for the CRA funded loan can be shortened to save on the overall cost. Unfortunately, HUD will not lower the interest rate for a shorter loan term. The overall savings are computed as follows: 1. $6,023,000 loan, 4.17% interest rate, 5 year term = $111,958 payment per month x 60 = $6,717,480 total payments. 2. $6,023,000 loan, 4.17% interest rate, 6 year term = $95,267 payment per month x 72 = $6,859,224 total payments. 3. $6,023,000 loan, 4.17% interest rate, 7 year term = $83,361 payment per month x 84 = $7,002,324 total payments. 2. The interest payments on both HUD loans projected to be due during the construction phase are included in the total development cost. Therefore, the CRA would not start paying on the loan until the month that the property receives its Certificate of Occupancy. So, if we start construction in March 2018 and we receive CO in February 2019 the CRA payments would commence in March 2019. Sincerely, Michael A. Hartman ROUNDSTONE DEVELOPMENT LLC Florida Office 1370 Taurus Court Merritt Island, FL 32953 321-453-9587 321-223-8650 Cell -----Original Message ----- From: Simon, Michael <SimonM(@bbfl.us> To: Guam <gsims06(a)aol.com>; Katz, Justin <KatZJr( bbfl.us> Cc: markkarageorge <markkarageorge(@comcast.net>; mm1370 <mm1370(@aol.com>; pastor <pastor stiohnmbc.com>; fcpace <fcpace(@aol.com>; woodrowhay <woodrow hav(@msn.com>; Utterback, Theresa <UtterbackT( bbfl.us> Sent: Tue, Apr 25, 2017 4:02 pm Subject: RE: Follow Up Response Hello Guarn: From: Simon, Michael To: Nicklien, Bonnie Subject: FW: Respone for Board Member Casella Date: Friday, May 05, 2017 10:51:32 AM Attachments: imaae415203.pna imaae378516.12na imaae161430.pna imaae754341.12na imaae975936.pna imaae420611.12na Nr'rchaeV 3urnon h-Aerurn Exec ru Jve D) rector CRA. Boynton Beach Cornrn unrty RedevOoprnent Agency 71.0 N. V-ederaV VIwy. Boynton Beach, HorHa 33435 561-600-9091. 561-737-3278 [3uu:rrauoNrB@1�1bV.rus 8-0�:tP://ww .catc-oboyrotoro.cor:i America's Gateway to the Gulfstream Nease be adv sed that RorHa has a broad pubhc records Vag° and aVV correspondence to me Grua ernaoa may be subject to &sc Vosrure.LJnder HorHa records Vary°, ernarl addresses are pubhc records. -therefore, your e- rnaau c ornrn urfuc at. on and your e- masa address may be subject to pubhc drsc Vosrure. From: Guarn [mailto:gsims06@aol.com] Sent: Wednesday, April 12, 2017 9:35 AM To: Simon, Michael <SimonM@bbfl.us>; Utterback, Theresa <UtterbackT@bbfl.us>; Nicklien, Bonnie <NicklienB@bbfl.us> Cc: pastor@stjohnmbc.com; mm1370@aol.com; markkarageorge@comcast.net; fcpace@aol.com Subject: Respone for Board Member Casella Good Morning Mr. Simon As promised and with regard to CRA Board Member Casello's question relevant to the amount of money the Delray Beach Housing Authority paid for the land formerly known as Carver Estates and now Village Square, please see the summary response below. This information was confirmed by Dorothy Ellington - Executive Director for Delray Beach Housing Authority The land was originally owned by a private entity. However, at the urging of the City of Delray Beach and CRA, HUD was asked to step in and purchase the property from the private entity which HUD executed the purchase. HUD then gave the land to the Delray Beach Housing Authority (at no cost) for purpose of developing affordable housing which is now known as Village Square. The Delray project is a 3 -Phase project. Phase I (Mixed Family - 183 Units & Operational) was financed through the 9% Tax Credit. Phase 11 (Elderly - 88 Units - Opens June 2017) was financed through the 4% tax credit which the CRA contributed 2.7million dollars towards Phase 11 due to the gap created through the 4% financing. Please note that Dorothy Ellington offered for anyone to contact her if additional information is needed. She also welcomed anyone to visit/tour the development. Thanks Deacon Sims ATTACHMENT III CRA BOARD MEETING OF: April 11, 2017 Consent Agenda I I Old Business I X I New Business I I Legal I( Information Only I I CRAAB AGENDA ITEM: XIV.A. SUBJECT: Consideration of the Letter of Intent from St. John's Missionary Baptist Church for the purchase of the CRA owned property located at 700 N. Seacrest Boulevard, also known as the Ocean Breeze East Site SUMMARY: On March 30, 2017, the CRA received a Letter of Intent (LOI) from St. John's Missionary Baptist Church, in a partnership with Roundstone Development, LLC, for the purchase and development of the CRA owned property located at 700 N. Seacrest Boulevard, a/k/a the Ocean Breeze Project site (see Attachment 1). St. John's Missionary Baptist Church is located at 900 N. Seacrest Boulevard within the CRA Redevelopment Plan's Heart of Boynton District and has been part of the community for 109 years. St. John's LOI describes their interest in developing a 108 unit affordable rental apartment community comprised of 1 & 2 bedrooms combined with a Family Life Center with a tropical swimming pool, fitness center, basketball and volleyball gymnasium, business center, multipurpose rooms, catering kitchen and a 5,000 square foot grocery store on the site. In addition to their project description, St. John's has submitted three different financial options for the purchase of the property and the physical development of the previously described project components proposed on the site (see Attachment 11). Financing Option 1: Use of a HUD 221(d)(4) loan, tax-exempt bonds from the Palm Beach County Housing Finance Authority, a request for $1 million in CRA funding and purchase of the site for $10 plus various fee credits and waivers. Financing Option 2: Use of a 9% Low Income million in CRA funding and fee credits and waivers. Housing Tax Credit award, a request for $1 purchase of the site for $800,000 plus various Financing Option 3: Use of a 4% SAIL loan, tax-exempt bonds from the Palm Beach County Housing Finance Authority, a request for $1 million in CRA funding and purchase of the site for $10 plus various fee credits and waivers. Regardless of which financing option used, the partnership will provide affordable housing under the following guidelines: 10% of the units will be rented to those at 33% of median area household income and 90% of the units will be rented to those at 60% of median area household income (see Attachment III). The proposal states that preference will be given to the hiring of local minority contractors and multiple job fairs will be held to solicit employees. FISCAL IMPACT: To be determined CRA PLAN/PROJECT/PROGRAM: 2016 CRA Redevelopment Plan — Heart of Boynton District (pages 105-117) CRAAB RECOMMENDATION: Recommends acceptance of the Letter of Intent from St. John's Missionary Baptist Church and recommends Board approval for Option 1 Financing CRA BOARDMOTION/OPTIONS: To be determined ,rte I t�v �t''��-' � � v � �,�,•""�-^ Michael Simon, Interim Executive Director CRA Advisory Board Recommendation BOARD ITEM XIV.A. Consideration of the Letter of Intent from St. John's Missionary Baptist Church for the Purchase of the CRA Owned Property Located at 700 N. Seacrest Boulevard, also known as the Ocean Breeze East Site The CRA Advisory Board reviewed the plans presented for the redevelopment of the Ocean Breeze East Site. Options #2 and #3 are contingent upon receiving a SAIL loan or 9% tax credits — both of which are lotteries and both of which have been unsuccessful in the past. Option #1 is not contingent upon receipt of credits. The CRA Advisory Board shares the desire with the community to develop this site as a senior living community with a grocery store and other retail along with a community center that could be enjoyed by local residents. St. John Missionary Baptist Church has stepped up as an integral partner in this development which provides the community commitment that should satisfy the CRA Board. They will be the partner that insures that a Community Benefit Agreement will be satisfied and provide jobs and a livable wage to many residents of the CRA District. This signature development could be the catalyst for additional redevelopment in the area. Further, this development does not just revitalize the District 2 community, but because of its proximity to Town Center, may be a catalyst for redevelopment of the entire CRA District. Therefore, the CRA Advisory Board unanimously supports this project and also unanimously supports Option #1. The CRA would contribute the land for the project, $1 million of project funds, and annual project funds of up to $450,000 for 20 years (such annual cost would be reduced by the Tax Increment Revenue provided by the project of at least $100,000). q- NA F 9 I MIT- lrypr!! , IF,m 01 6.1- a t To.: Michael Simon, Executive Dfiwtoq� Boynton Beach Community Redevelopment Agency, and Boynton Beach Community Redevelopment Board Members r. vzt- �-' M M It frt7m Ifflo - -W79 boundary as Seacrest Blvd., the east boundary as I ft St, and the north boundary as NE 7* Ave., and the south boundary as behind the apartments on NE 6* Ave. 11111W"J� TV ' - I'1777t t, -W*2R center, multipurpose rooms and a catering Icitchen, combined with a SM sq. fL Grocery atom This would be a true non-competitive development which could move forward promptly with no "lotterf- uncertainties. wCiI.—Ti. 71 ISM the following FHFC guidelines - 10% of the units at 33% of am median income and 9(r/a of units at 60019 of area median income. The partnership will give prefemces to minority local subcontractors and host multiple job fairs for minority district 2 residents. at the RM Lm Educational Complex located on the St. John campus. The partnership will have an art featum St. John Missionary Baptist church has been a pillar of the city for 109 yam with over 1,000 members. Roundstone Developmen4 LLC is a national developer with a proven rmord of developing quality, affordable housing in Palm Beach County and throughout the Sunbelt of the United Std=. Their most recent success is in Delray Beach partnering with the Delray Beach Housing Authority on a project located at 121h Ave and 10& St. We will be able to present a conceptual plan within 120 days to the CRA Board. We request that you approve our letter 0 interest and allow us to, come back in 120 days so that staff can develop a purchase and development agreement idlk- K JOVIttv"IL) Davis, PastorJohn's Missionary Baptist Church Chahman dDeacons— St John MissimaryBaptist Church, In Hkn m how redwom k*& Willie Gibv HowardBrown Chairman of Trustees — St John Missionary Baptist Church ft ftVWr,"5 of to Michael HA dftdhwn or EO. MissionaTy 7'7 B fist Church March 29,2017 To: ®cSimon, Executive Director, Boynton Beach Community Redevelopment Agency, and Boynton Beach Community Redevelopment Board Members ® The St. John Missionary Baptist Church Re: Loner of Interest in the CRA owned site known as Occan Breeze t® r QW TTT, T, -07. "MkTiT-I"tTrip--rrl;707"�m��Awrtrivi'm�= �-g boundary as Seacrest Blvd., the east boundary as I$' St., and the north boundary as NE Th Ave., and the son& boundary as A ehind the apartments on NE 61h Ave. 4) AV7777,f 44 Off T q q, , q, q, M111 -2: TOTTT WXY —TV P" the St. John campus. The partnership will have an ad feature approved by the city's arts commission that will be valued at 1% of the building cost. Our praference will be to use artists fiom District 2. St. John Missionary Baptist church has been a pillar of the city for 109 yew with over 1,000 members. Roundstone Development, LLC is a national developer with a proven record of developing qualitN affordable housing in Palm Beach County andthroughout the Sunbelt of the United States. Their most recent success is in Delmy Beach partmering with the Delray Beach Housing Authority on a project located at 12t, Ave and I 01h SL We will be able to present a conceptual plan within 120 days to the CRA Board. We requut that you approve our letter of interest and allow us to come back in 120 days so that staff can develop a purchase and development agreement. cerely Rov.Jovan Davis, Pktor — St. John's Missionary Baost Church Willie Giii - Chairman of Deacons — St. John Missionary Baptist Church to tft we 68 r@&n4*W duawh Hk blwd, Howard Brown Cbsirman of Trustees — St. John Missionary Baptist Church um ft*mm adas, a0wrang to me dMas off* WM - W. 1:7 To: Michael Simon, Executive Director, Boynton Beach Community Redevelopment Agency, and Boynton Beach .n .011111111nity Redevelopment Board Members This would be financed using a SAEL Loan from the Florida Housing Finance Corporation (FHFC) and Tax — Exempt [Ponds from the Palm Beach County IVA, a community investment of $1 Million, utility credits and impact fees waivers L,id die land provided to the partnership at a cost of $10.00. Ilis partnership will provide affordable housing using the following F]HFC guidelines -10 of the units at 33% of area median income and 900A of units at 60% of area median income. The partnership will give pre*rences to minority local subcontractors and host multiple job ffirs for minority district 2 maidents at the RM Lee Educational Complex located on the St. John campus. cost. Our prefemnee will be to use ardsts from DisWct 2. St. John Missionary Baptist church has been a pillar of the city for 109 years with over 1,000 members. #A Miff Development, LLC is a nadonal developer with a prom record of developing quality, affordable housingli: Palm Beach County and throughout the Sunbelt of the United States. Their most recent success is in Delray Bar* pattriering with the Dehay Beach Housing Authority on a project located at 120 Ave and 100 St =777VM7 i 7,17, 4, R Jova d , Pastor — St John's Missionary Baptist Church Williih,,(— St. John Missionary Baptist Church, Howard Brown Chairman of Trustees — St John Missionary Baptist Church Michael Hartman Developer — Roundstoric Developmair, LLC Wftlmh , M ffidwWOM Mmugh Hk fta4 an ftwownw of ® wwrft b me dahm OfHk gnm - E". 1:7 I i I 1 11. 0 - 11 1 * I Wiliz - - It LTOWLINTIM10 Us= Financing • We (the partnership that will own the property and buildings) secure a permanent loan from HUD under the 22 1 (d)(4) program. • We secure a construction loan from the Palm Beach County Housing Finance Authority (HFA) using Tax —Exempt bonds. • We secure non-competitive 4% Housing Tax Credits from the Florida Housing Finance Corporation that we sell to an equity investor. • The CRA would provide the property up front a $1 Million community investment and an annual TIF investment of $450,000 per year for twenty years. • The CRA would sell the land to the Church for $10. • The City would give us the utility credits that the property already qualifies for as well as waive all impact fees. • The City would still be paid all building permit fees. • The City and County would still be paid ftill property taxes (about $110,000 per year). • This would be a true non-competitive development which could move forward promptly with no "lottery" uncertainties. We (the partnership that will own the property and buildings) secure a permanent loan from a conventional lender. • We secure competitive 9% Housing Tax Credits from the Florida Housing Finance Corporation that we sell to an equity investor. • The CRA would provide the property up front a $1 Million community investment. • The CRA would sell the land to the Church for $800,000. • The City would give us the utility credits that the property already qualifies for. • The City would still be paid all building permit fees and impact fees. • The City and County would still be paid full property taxes (about $ 100,000 per year). • This would be a competitive development which could move forward only if we win the "lottery". It would also be subject to a bid challenge by the losers in the competition. That will cost us time and money. Option 3 Financing, • We (the partnership that will own the property and buildings) secure a permanent loan from HUD under the 221(d)(4) program. • We secure a construction loan from the Palm Beach County Housing Finance Authority (HFA) using Tax —Exempt bonds. • We secure non-competitive 4% Housing Tax Credits from the Florida Housing Finance Corporation that we sell to an equity investor. • We secure a competitive SAIL Loan from FHFC. • The CRA would provide the property up front a $1 Million community investment. • The CRA would sell the land to the Church for $10. • The City would give us the utility credits that the property already qualifies for as well as waive all impact fees. • The City would still be paid all building permit fees. • The City and County would still be paid full property taxes (about $110,000 per year). • This would be a competitive development which could move forward only if we win the "lottery". It would also be subject to a bid challenge by the losers in the competition. That will cost us time and money. . ? k 2 ? \ 46 Lm 4 � sm ^/ . ` ¥: \ \ ,. 0 v: ¥: e \ } , . . . . A< \¥ § . CO � \ o 4 ® \ � : \ . ¥ * 0 .. }\ . \ : .. . : . m • *l ©\ ?\ w • L.. *i � \ C � � 0 m � 0 y. \ 0 < . :U Ck.\ CO < : A � � 00 ^ • e e e � • # - : \ \ k © / k . w3 2 4 m m \ k. 41 § .. d \ / « too- txo« . § \ w.- .: w w » 4 «:« j. K » 2 < » © ? # # U :co a o y © 2 m/ƒ V -ill, -01 o 0 : \ \ k K # \ « ? ■ . CL y « ~4-0 ? \tn © j d 'o � \:w.. CU w � 2 #- » - y \ o 0 k 2 9 VClH0-l-A'H0V38 NOIAOS HOV313 NOINA013 2 w z asl 3N a T n ............. '-17 J SEACREST BLVD S, .-p qgn I W ONWA CL NO UW) =3 C) (D 2 w z asl 3N a T n ............. '-17 J SEACREST BLVD S, .-p qgn I W ONWA lT 6w Z, 9 J�A St. John Church / Roundstone Development Summary for Redevelopment of 700 N. Seacrest Blvd. (Ocean Breeze East) Option 1 Financing • We (the partnership that will own the property and buildings) secure a permanent loan from HUD under the 221(d)(4) program. • We secure a construction loan from the Palm Beach County Housing Finance Authority (HFA) using Tax —Exempt bonds. • We secure non-competitive 4% Housing Tax Credits from the Florida Housing Finance Corporation that we sell to an equity investor. • The CRA would provide the property up front a $1 Million community investment and an annual TIF investment of $450,000 per year for twenty years. • The CRA would sell the land to the Church for $10. • The City would give us the utility credits that the property already qualifies for as well as waive all impact fees. • The City would still be paid all building permit fees. • The City and County would still be paid full property taxes (about $110,000 per year). • This would be a true non-competitive development which could move forward promptly with no "lottery" uncertainties. Option 2 Financing • We (the partnership that will own the property and buildings) secure a permanent loan from a conventional lender. • We secure a construction loan from a conventional lender. • We secure competitive 9% Housing Tax Credits from the Florida Housing Finance Corporation that we sell to an equity investor. • The CRA would provide the property up front a $1 Million community investment. • The CRA would sell, the land to the Church for $800,000. • The City would give us the utility credits that the property already qualifies for. • The City would still be paid all building permit fees and impact fees. • The City and County would still be paid full property taxes (about $100,000 per year). • This would be a competitive development which could move forward only if we win the "lottery". It would also be subject to a bid challenge by the losers in the competition. That will cost us time and money. Option 3 Financing • We (the partnership that will own the property and buildings) secure a permanent loan from HUD under the 221(d)(4) program. • We secure a construction loan from the Palm Beach County Housing Finance Authority (HFA) using Tax —Exempt bonds. • We secure non-competitive 4% Housing Tax Credits from the Florida Housing Finance Corporation that we sell to an equity investor. • We secure a competitive SAIL Loan from FHFC. • The CRA would provide the property up front a $1 Million community investment. • The CRA would sell the land to the Church for $10. • The City would give us the utility credits that the property already qualifies for as well as waive all impact fees. • The City would still be paid all building permit fees. • The City and County would still be paid full property taxes (about $110,000 per year). • This would be a competitive development which could move forward only if we win the "lottery". It would also be subject to a bid challenge by the losers in the competition. That will cost us time and money. r CRA BOARD MEETING OF: May 9, 2017 Consent Agenda I X I Old Business 1X1 New Business I I Legal I I Information Only I I CRAAB AGENDA ITEM: XIII.C. SUBJECT: Status of the 2.97 Acre Project Site known as MILK, Jr. South SUMMARY: At the December 13, 2016 CRA Board meeting, CRA staff presented the CRA Board with an update on the NuRock Development Partners d/b/a, Heritage at City View Housing Partners, LP, redevelopment project of the 2.97 acre site partially owned by the CRA known as the MLK, Jr. South Project. As of Mr. Block's February 6, 2017 email to CRA staff, he confirmed that the Florida Housing Finance Corporation prevailed in keeping the "local government support" preference a part of the application review and scoring. During the challenge process, applications and the review process was placed on hold. Now that the local contribution preference has been resolved, the application review process can begin. Mr. Block anticipates a summary spreadsheet of the applications received by Florida Housing Finance will be forthcoming in the next week to ten days. This summary will identify where NuRock's application fell in the ranking (see Attachment 1). On February 27, 2017 and again on March 10, 2017, staff received email updates from Mr. Block informing us that Florida Housing had held a telephonic board meeting during the week of February 21, 2017 to approve the ruling supporting the local government preference for large counties and they were still waiting to hear the results of the application review/lottery process. As of the latest email, applications are now projected to be scored in April and recommendations made to FHFC on May 5, 2017 (see Attachment 11). On April 4, 2017, April 19, 2017 and again on April 30, 2017, staff reached in email to obtain additional updates. According to Robby Block as per his email on April 19, 2017, staff of FHFC was to meet on April 25, 2017 to determine scoring summary to be sent to the May 5, 2017 FHFC Board meeting for final approval. Unfortunately, as per Mr. Block's email received on May 1, 2017, it appears they were not successful in being awarded the 9% tax credit funding (see Attachment III). Under the terms of the Purchase and Development Agreement, NuRock has until June 30, 2017 to obtain approval of an allocation. If an allocation is not awarded, NuRock may request termination of the current agreement or request a six (6) month extension for an additional nonrefundable deposit (see Attachment IV). FISCAL IMPACT: N/A CRA PLAN/PROJECT/PROGRAM: 2016 Boynton Beach Community Redevelopment Plan, Heart of Boynton (pages105-117) CRAAB RECOMMENDATION: N/A CRA BOARD OPTIONS/MOTION: Unless otherwise offered by the CRA Board, a motion is not required at this time Digitally signed by Michael Simon MichaMichael SI mon DN: cn=Michael Simon, o, ou, el �i J t 1 1 email=simonm@bbfl.us, c=US Date: 2017.05.05 15:08:00 -04'00' Michael Simon, Interim Executive Director ATTACHMENT Nicklien, Bonnie From: Nicklien, Bonnie Sent: Thursday, March 02, 2017 5:07 PM To: Harris, Susan; Hill, Vicki; Simon, Michael; Utterback, Theresa Subject: RE: Ocean Breeze Contract Termination I have saved this as XIIIC Back Up under completed agenda items for Mar 15 t" Board Meeting. I also saved it: am Bonnie Nicklien dn-,iinistrati °e Assistant CR. A. Boynton Beach Con-m-wnity Rede °elr: pn—,ient Agency 10 N. Federal Hwy. I Boynton Beach,Florida 3435 561-600-9090 1 JB 561-737-3258 Nicl<lienB@bbfl.us I Q, l.ittp. oynton- yea li.or`g El 0 America's Gateway to the Gulfstream Please be advised that Florida has a goad public records law and all correspondence to mie via en -rail n-,Iay be subject to disclosure. Under, Florida records law, en -mil addresses are public records. Therefore, your, e-n-iail on-imiuni ation and your, e-mail address may be subject to public disclosure. From: Kathryn Rossmell [mailto:krossmell@llw-law.com] Sent: Thursday, March 02, 2017 4:03 PM To: Harris, Susan; Hill, Vicki; Simon, Michael; Utterback, Theresa; Nicklien, Bonnie; Tara Duhy Subject: FW: Ocean Breeze Contract Termination Hi gang – per our phone call, please find below/attached our correspondence to R. Block terminating the Ocean Breeze contract. Let us know if you need anything further. From: Ken Dodge Sent: Wednesday, March 01, 2017 4:30 PM To: 'Robby Block' <rblock@nurock.com> 1 Cc: Kathryn Rossmell <krossmell@llw-law.com> Subject: RE: Ocean Breeze Contract Termination Robby — please see attached, wire going out tomorrow a.m. Kenneth W. Dodge I Executive Shareholder Board Certified Real Estate Law 515 North Flagler Drive, Suite 1500 I West Palm Beach, Florida 33401 kdodge(a_llw-law.com 1561.640.0820 vCard I Website I Bio I join us online tEM T�wlnfjpmmoonntailnedin this tTamsTNsskn rna 1 9 and conrfi ntiwA, It welw4odcotyfaf the ease of the LONGMAN rec ientp) named abouctf'aeaderof this message. is not tfw. int"ed recip4rd, you are hembynotffted t rat re is dtl r -nammunkataonin efrot ark that this cextn i n is strac* r4itht . if you have L LW' WALXER i*c N*d'&s muni"t iv -&raj,, pleasem i r the cern ,rima*d4telyby ceplyem&AaM dellen the message, and copkmolit From: Robby Block [mailto:rblock@nurock.com] Sent: Monday, February 27, 2017 4:34 PM To: Ken Dodge <kdodge@llw-law.com> Subject: Fwd: Ocean Breeze Contract Termination See below. Thank you Ken. Robby Sent from my Whone Begin forwarded message: From: Robert Hoskins <rhoskins@nurock.com> Date: February 27, 2017 at 4:31:34 PM EST To: Robby Block <rblock@nurock.com> Subject: RE: Ocean Breeze Contract Termination Wiring Instructions: NuRock Development FargoWells ABA# 121000248 Account # 2000009135181 From: Robby Block Sent: Monday, February 27, 2017 4:27 PM To: Robert Hoskins <rhoskins@nurock.com> Subject: FW: Ocean Breeze Contract Termination Can you please send me instructions? Thanks. From: Ken Dodge [mailto:kdodge@llw-law.com] Sent: Monday, February 27, 2017 4:26 PM To: Robby Block Subject: FW: Ocean Breeze Contract Termination Hi Robby — I have received the attached Notice of Termination for this transaction. Please send me wiring instructions so I can reimburse the $25,000 deposit I am holding —thank you. Kenneth W. Dodge I Executive Shareholder Board Certified Real Estate Law 515 North Flagler Drive, Suite 1500 I West Palm Beach, Florida 33401 kdodge(a_llw-law.com 1561.640.0820 vCard I Website I Bio I join us online 1'W Intks for #ice o Lae$L. awcm�,r1 a� n ��, i far r or* A K GNIM m *, in gar , am 01'a" ' r wVwk""CW&W% is Ityk- 0 L LW, cwmw" " in *,m* mtd� 04 "nam- inyn"Wrmfy 4 no, From: Simon, Michael [mailto:SimonM@bbfl.us] Sent: Monday, February 27, 2017 3:06 PM To: Harris, Susan <HarrisSu@bbfl.us>; Tara Duhy <tduhy@llw-law.com> Cc: Ken Dodge <kdodge@llw-law.com>; Kathryn Rossmell <krossmell@llw-law.com>; Utterback, Theresa <UtterbackT@bbfl.us> Subject: FW: Ocean Breeze Contract Termination Hello Tara and Susan: Please see the email below and attached letter sent from Robby Block concerning the Ocean Breeze development agreement. Michael Sin -,ion Interim Executive Director CF.A. Boynton Beach Con-'in-'iunity Redevelopn-,ient Agency 710N. Federal Hwy. I Boynton Beach,Florida 33435 561-600-9091 1 JEJ561-737-3258 min-,ionl l@bbfl.us littp://www.boynton-beacli.or,g/ America's Gateway to the Gulfstream Please e advised that Florida has a goad public records law and all correspondence to n -ie via en -rail n-,Iay e subject o disclosure. Under, Florida records law, en -sail addresses aro public records. Therefore, your, o-n-iail on-in-wni a ion ars your, e-n-iail address n-,iay e subject o public disclosure. From: Robby Block [mailto:rblock@nurock.com] Sent: Monday, February 27, 2017 12:44 PM To: Simon, Michael <SimonM@bbfl.us> Cc: Robert Hoskins <rhoskins@nurock.com> Subject: Ocean Breeze Contract Termination Good Afternoon Michael, Attached is the termination letter for Ocean Breeze. We are still petitioning Florida Housing in an effort to get this deal approved. If we are successful in getting the award, I will let you know and hopefully we can get back into contract. Please arrange for the Escrow Deposit to be refunded. I will forward wiring instructions. MLK — Florida Housing held a telephonic board meeting last week to approve the judge's ruling for the large county RFA. We should get some idea where we stand in the next 10 days. Thank you. Regards, Robby D. Block NuRock Acquisitions Florida, LLC 8794 Boynton Beach Blvd., Suite 219 Boynton Beach, FL 33472 561.990.2614 Office 561.756.0329 Cell ATTACHMENT II Nicklien, Bonnie From: Robby Block <rb|ock@ynurockzom> Sent: Friday, March IO'2OI7y:IOAM To: Simon' Michael Cc 'aUanschnien0gmai|zom';Utterbadk,Theresa; NicNien'Bonnie; Robert Hoskins Su bject: RE: Status Update Request - MLKJr. South Project Good Morning Michael, Florida Housing held a telephonic conference call last week to make a motion on the judge's ruling which allows FHstaff tofinally open and review the applications. Because ofthe lawsuit, the cycle has been delayed. Initially the applications were supposed toOotostaff for scoring this month, but it appears they won't beina posKontoscore the applications until April and then take their recommendations to the Board for approval at the May 5 th board meeting. Until FH releases the applications online (probably not until April), we can't analyze our competition. We were hoping that FHwould have expedited this review process, but asit stands today that didn't happen. I will speak with Allan and try to coordinate someone being at the meeting. I assume the meeting isnext week? Thanks and call mewith any further questions. From: Simon, Michael Sent: Thursday, March 9,20179:44AM To: Robby Block Cc: Robert Hoskins; 'aUanochnier@gmaiicom'; Utterback,Thereoa; Nick|ien, Bonnie Subject: RE: Status Update Request MLKJr. South Project Importance: High | hope this email finds you well. It's that time again, CRA Board meeting agenda preparation week. Doyou have any update you can provide regarding the L|HTCapplication process for the MLKJr. South project? The Board has requested that | ask you for anemail update ifyou weren't planning onattending the meeting. I'll need this update by the end of the day today. Thank you very much. K4ichoe|Simon Interim Executive Director C�R�A� 71ON.Federal Hwy. | BoyntonBeod\F|ohdo 33435 | 6 561-737-3258 �� America's Gateway tothe Gulfstream Please be advised that Florida has a broad public records law and all correspondence to n -le via en-lail n-,Iay be subject to disclosure. Under, Florida records law, en-iail addresses are public records. Therefore, your, e-n-iail con-in-wnication and your, e-n-iail address n-,iay be subject to public disclosure. From: Simon, Michael Sent: Monday, February 27, 2017 3:04 PM To:'RobbyB|ock' Cc: Robert Hoskins Subject: RE: Ocean Breeze Contract Termination Thank you Robby and I'll forward the attached letter toTara Duhyand Susan Harris for their review and processing as per the terms of the agreement I know we're all disappointed in the results but we recognize it was out of your control. On behalf of the CRA, I want to thank you and your team for the time and effort put forth in hopes of developing the site. Our fingers are still crossed for the MLKJr. South project. If I can be of any assistance to you over the next ten days, please let me know. From: Robby Block Sent: Monday, February 27, 2017 12:44 PM To: Simon, Michael Cc: Robert Hoskins Good Afternoon Michael, Attached is the termination letter for Ocean Breeze. We are still petitioning Florida Housing in an effort to get this deal approved. If we are successful in getting the award, I will let you know and hopefully we can get back into contract. Please arrange for the Escrow Deposit to be refunded. I will forward wiring instructions. MLK — Florida Housing held a telephonic board meeting last week to approve the judge's ruling for the large county RFA. We should get some idea where we stand in the next 10 days. Thank you. Regards, Robby D. Block NuRock Acquisitions Florida, LLC 8794 Boynton Beach Blvd., Suite 219 Boynton Beach, FL 33472 561.990.2614 Office 561.756.0329 Cell ATTACHMENT III Simon, Michael From: Robby Block <rb|ock@ynurockzom> Sant: Monday, May 1'2O17Q:3QAM To: Simon' Michael Su bject: RE: MLKJr South Project Good Morning Michael, unfortunately, its not good news. As|had mentioned, there were 2other projects inPBC that received the local government preference. | knew ofone ofthe deals, but thought that vvehad agood argument ifthey beat usinthe ultimate lottery. Related came in with a deal in the City of WPB, which has never given this kind of money out before, but they structured it as a loan, which in my opinion defeats the purpose of the support from a local government. VVehave been going through Related initial application tosee ifthere were any red flags and atthis point | don't see any. Its very disappointing from our perspective as | know you feel the same way! | will prepare the termination letter for the contract and send over later today. There has not been any discussion onthe new cycle timeframes orapplication requirements. |amvery surprised that Roundstone received your recommendation for a contract when no timing has been announced. 0uRookhas been working on a financing structure that may have worked for OBE, but from my impression with the City Commissioners (CRA) comments at all of my meetings I didn't feel that they wanted to sell it anymore to an affordable housing developer. VVeare alocal company with anoff ice 3 miles away and every time I went in front of the CRA I felt like I was the enemy and had to defend the States process and previous developers that didn't win either. These two sites are very good candidates for affordable housing and will one day get funded. MILK isgoing tobe a|itde harder with the other owners, but its definitely achievable. Thank you and your staff for your support through the process and I hope that we can try again later this year! Best Regards, Robby D. Block NuRock Acquisitions Florida, LLC Boynton Beach, FIL 33472 561.990.2614 Office 561.756.0329 Cell From: Simon, Michael [maiKo:SimonM@bbfl.us] Sent: Sunday, April ]O, 2017 2:24 PM To: Robby Block Cc: a|lanschnier@gmai|.(om;Utterback, Theresa; Harris, Susan Subject: RE: MLK]rSouth Project I'm following uponyour email below dated, April 19, 2017 inwhich you said that staff scoring would betaking place in Tallahassee. | haven't heard from you since the 191hso|thought | should reach out. The CRAA0and CRA Board will want anupdate this week. Can you please tell mewhat happened onApril 25'h and ishappening with 0uRookand what's happening relative tothe current Agreement with the CRA? Myfingers are crossed that it's good news. Michael Simon |ntehm Executive Director CRA Boynton Beach CommunityRedeve|opmentAgency 71ON.Federal Hwy. I Boynton Beach, Florida 33435 �— ��1-�UO-�U�1 | ��561-737-3258 =~ ' m�w SimonK4@bbf|.ua | 42, http�//vvvvvv.cotchboynton.com America's Gateway to the Gulfstream Please be advised that Florida has a broad public records law and all correspondence to n -,ie via en-lail n-,Iay be subject to disclosure. Under, Florida records law, en-,iail addresses are public records. Therefore, your, e-n-,iail con-,in-,iunication and your, e-n-,iail address n-,iay be subject to public disclosure. From: Robby Block [maiho:rb|ock@nurock.com] Sent: Wednesday, April 19 20174:33PM To: Simon, Michael <SimonM@bbfl.uo> Subject: RE: Lots for Sale HiMichael, yes, we are currently in2 dpoSiboninPBC for funding. However, next Tuesday 4/25isthe staff scoring and ranking. | will know where vvestand after that meeting. Itisat2:O0inTallahassee and | will bethere. | will call oremail you right after. Thank you. From: Simon, Michael Sent: Wednesday, April 19, 2017 4:20 PM Cc: 'allanschnier@gmail.com'; Harris, Susan; Hill, Vicki; Utterback, Theresa Subject: RE: Lots for Sale MIINS 1no 111 1R Have you had a chance to read the email below that I sent yesterday afternoon? I'm heading into a Strategic Planning meeting with the City Commission/CRA Board and I'm sure they will be asking me if I've heard anything from you. Michael Sin -,ion lnterirci Executive Director CR.. Boynton Beach Con-,in-,iunity Redevelopn-,ient Agency 10 H. Federal Hwy. I Boynton Beach, Florida 33435 561-600-9091 1 a 561-737-3258 ,` Sin-,ionM@bbfl.us l@bbfl.us 0 Litt pwww.cat l...iboynton.rr: n -,i America's Gateway to the Gulfstream Please e advised that Florida has a goad public records law and all correspondence to nie via en -rail n-,Iay e subject o disclosure. Under, Florida records law, en -,,ail addresses aro public records. Therefore, your, o -n -,,ail r: n -,in -,i ni a ion ars your, e-mail address may e subject o public disclosure. From: Simon, Michael Sent: Tuesday, April 18, 2017 3:21 PM To: 'Robby Block' <rblock@nurock.com> Cc: 'allanschnier@gmail.com'<allanschnier@gmail.com>; harrissu@bbfl.us; Hill, Vicki <HiIIV@bbfl.us> Subject: RE: Lots for Sale WINSTIMSTSTSIN The CAR Board is getting anxious about the results of the LIHTC application scoring to see if you were selected. As you may know, St. John's Missionary Baptist Church, in partnership with Roundstone Development, submitted a LOI to purchase the Ocean Breeze site for Senior Affordable Housing. 3 Unfortunately, Michael Hartman announced to the CRA Board at last Tuesday night's meeting that he was "pretty sure" 0uRockdidn't get the Q96allocation inthis round of applications. | have noway ofverifying a statement like that except through you. The premise behind Mr. Hartman's statement is that if 0uRook is not successful at obtaining tax credit financing during this application round, then St. John's will build Senior housing. |fyou are successful, then they will build multi -family affordable. Any light you can shed on the status or process currently going on with the LIHTC applications would be greatly appreciated. Thank you. From: Robby Block Sent: Tuesday, April 11,20172:S8PM To: Simon, Michael Subject: RE: Lots for Sale HiMichael, vvehave been keeping Larry uptodate, but as|told you, vvehave been delayed due toFHFCissues. If we are inthe money after the scoring round, | will get back with him. Everything else isthe same. Thanks. From: Simon, Michael Sent: Tuesday, April 11,2O17 2:53 PM To: Robby Block Cc: 'a|kanschnier@gnlai|.conl;Utterback,Theresa; 'tduhy@Uw+law.com';Kenneth Dodge Subject: FW: Lots for Sale Importance: High I just received the email below from Mr. Finklestein concerning his purchase and sale contract with NuRock for the lots heowns within the MLKJrSouth project area. Can you please provide mewith the status ofthe contract asreferenced and the overall project in light ofhis email. Thank you. Michael Simon Interim Executive Director C�R�A� 10 H. Federal Hwy. Boynton Beach, Florida 3435 561-600-9091 561-737-3258 Sin-,ionM@bbfl.usl�ittp�//www.boynton-beacl.i.or,g/ p�.bc:rnc:rn-boai.i.or` America's Gateway to the Gulfstream Please e advised that Florida has a goad public records law and all correspondence to nie via email n-,Iay e subject o disclosure. Un er, Florida records law, on-,iail addresses aro public records. Therefore, your, o-n-,iail on-,in-,iuni a ion and your, e-mail address n-,iay e subject o public disclosure. From: Ifgi@aol.com [mailto:lfgi@aol.com] Sent: Tuesday, April 11, 2017 2:47 PM To: Simon, Michael <SimonM@bbfl.us> Subject: Re: Lots for Sale Hello Mike, I'm not getting any response from NuRock so we sent a letter of termination today. Let me know if you have an interest in the properties. Larry c. (561) 906-544 -----Original Message ----- From: Simon, Michael <SimonM bbfl.us> To: Ifgi <Ifgigaol.com> Sent: Thu, Mar 23, 2017 12:56 pm Subject: RE: Lots for Sale Thank you Larry, I'll take a look and send you a request for pricing on the ones I think are supportable by the Board. Have a great day. Michael Sin -,ion Interim Executive Director �1 CRA. Boynton Beach Con-m-wnity I ede °elopnient agency 10 N. Federal Hwy. I Boynton Beach, Florida 33435 561-600-9091 1 ,, 561-737-3258 fid SimonM@bbfl.us I Q http:JJwww.boynton-beach.orgf MF R, America's Gateway to the Gulfstream Please be advised that Florida has a goad public records law and all correspondence to nie via entail n-,Iay be subject to disclosure. Un er, Florida records law, en-iail addresses are public records. Therefore, your, e-n-iail on-in-wni ation and your, e-mail address n-,iay be subject to public disclosure. From: Ifni aol.com [mailto:lfi aol.com] Sent: Wednesday, March 22, 2017 10:56 AM To: Simon, Michael <Simon Cbbfl.us> Subject: Lots for Sale Hello Mike, If you want to try an acquire all of the lots I have left, let me know. I have attached a map One property is a "sliver" but will allow you to complete the road through that section. We can wait and see what happens on the assembly. I may have two more coming up from a tax deed sale Larry Finkelstein, President Lamar Realty Corporation, Florida Licensed Real Estate Broker, CAM Firm PO Box 362042 Melbourne, FL 32936-2042 p. (321) 775-3990 c. (561) 906-5440 N. Nicklien, Bonnie From: Robby Block <rb|ock@ynurockzom> Sent: Thursday, April O6'2OI7I(lSSAM To: Simon' Michael Cc Utterbadk,Theresa Su bject: RE: MLKJr South Project - Update on Application |amnot sure ifyou have heard, but Pinnacle Housing Group was charged with fraud and over inflating construction costs The Fedsonly gave them a fine, but it was abig discussion within FHover the last 3O-45days. FHstaff had proposed 5year ban along with vacating 5deals inthe pipeline. Itwas overturned bythe Board Members and they only received a2year ban. More to come on this situation. It is also my understanding that there are 2-3 other Miami - Dade developers under review by the Fed's. | have only heard one ofthe names sofar. FH also appointed a new director at the last meeting, so there has been a lot going on. FH Staff isscheduled hohold the scoring summary onApril 25 th and will take those results tothe May thBoard Meeting for approval. | will be attending the scoring review inTallahassee and will let you know that evening how itturns out. Thanks. From: Simon Michael Sent: Tuesday, April 4, 20175:09PM To: Robby Block; 'aUanschnier@kzmai|.onm' Cm: Utterback, Theresa Subject: MLK3r South Project - Update on Application Hello Robby: It's that time ofthe month again toask you for anupdate, ifyou have anything new, concerning your funding application for L|HTCo. Your last update told us you should know the unofficial rankings by April 5 th with official rankings th announced May 5 . Is this still the case? Do you have any news for me to relay to the CRA Advisory Board at this Thursday's meeting? Just let meknow. Thanks. Hope all is well with you. Michael Simon Interim Executive Director CRA Boynton Beach CommunityRedeve|opmentAgency 71ON.Federal Hwy. I Boynton Beach, Florida 33435 �,-,J Sin-,ionM@bbfl.us I Q, littp//www.boynton-beacli.or,g/ America's Gateway to the Gulfstream Please be advised that Florida has a br,oad public r,ecor,ds law and all correspondence to mie via en -rail n-,Iay be subject to dicloy ur'e. Under, Flor,ida r,ecor,ds law, en -mil addresses ar,e public r,ecor,ds. Ther,efor,e, your, e-n-iail con-imiunication and your, e-n-iail address n-,iay be subject to public disclosur'e. ATTACHMENT IV MLKP&D PURCHASE AND DEVELOPMENT AGREEMENT This Purchase and Development Agreement (hereinafter "Agreement") is made and entered into as of the Effective Date (hereinafter defined), by and between BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, a public agency created pursuant to Chapter 163, Part III, of the Florida Statutes (hereinafter "SELLER") and HERITAGE AT CITY VIEW HOUSING PARTNERS, LP, or its wholly owned affiliate assignee (hereinafter "PURCHASER", and together with the SELLER, the "Parties"). In consideration of TEN AND 00/100 DOLLARS ($10.00) and the mutual covenants and agreements herein set forth, the receipt and sufficiency of which is hereby acknowledged the Parties hereto agree as follows: 1. PURCHASE AND SALE OF PROPERTY. It is PURCHASER's intention to acquire all parcels as listed and depicted in the attached Exhibit "A" (hereinafter the "Project Area") in order to construct a new mixed use housing community development on the south side of Martin Luther King, Jr. Boulevard in the Heart of Boynton community. Seller is the owner of the highlighted parcels within the Project Area as set forth in the attached Exhibit "A" and agrees to sell and convey to PURCHASER said parcels on the terms and conditions set forth herein. The Parcels owned by CRA within the Project Area shown on Exhibit "A" shall be known as the "Property". 2. PURCHASE PRICE AND PAYMENT. PURCHASER and SELLER have agreed to an overall land acquisition budget of Two Million and 00/100 Dollars ($2,000,000.00) for the purchase of all parcels within the Project Area. PURCHASER shall provide to SELLER purchase agreements for all parcels within the Project Area not owned by SELLER (hereinafter "Third Party Parcels") and a Purchase Price for the SELLER owned parcels in Exhibit "A" shall be calculated by subtracting the sum of all fully executed and binding Third Party Parcel contracts from the Two Million Dollar ($2,000,000.00) acquisition budget. The Parties acknowledge that this could result in a nominal purchase price for the Seller owned parcels. PURCHASER understands and agrees that this calculation shall be utilized notwithstanding PURCHASER's failure to acquire all parcels within the Project Area. 3. DEPOSITS. An Initial Deposit in the amount of TWENTY-FIVE THOUSAND AND 00/100 ($25,000.00) shall be deposited with Lewis, Longman & Walker, P.A. (hereinafter "Escrow Agent") within five (5) business days following execution hereof by the Parties. The Initial Deposit shall be fully refundable to PURCHASER, if prior to the expiration of the Feasibility Period (as hereinafter defined), the PURCHASER advises SELLER in writing that it does not intend to complete the purchase of the Property. Said Deposit shall be credited to Purchaser at Closing assuming Section 2 Purchase Price and Payment is met. 3.1 Second Deposit. An additional deposit in the amount of TWENTY-FIVE THOUSAND AND 00/100 ($25,000.00) which together with the Initial Deposit shall be referred #4462351v1 30364-0000 00715764-1 PURCHASE AGREEMENT/ NUROCK/MLKSouth Page 2 of 17 to as the "Deposit" shall be deposited with the Escrow Agent, at the end of the Inspection Period. The Deposit shall be non-refundable to PURCHASER, except upon (i) failure by SELLER to satisfy any conditions precedent to closing; (ii) failure by PURCHASER to obtain a tax credit allocation (as described in Paragraph 7 below); (iii) upon default by SELLER hereunder; or (iv) failure of PURCHASER to obtain the items described in subparagraphs 5(a) and (c) below. All interest accruing on the Deposit shall be credited to the Party entitled to retain the Deposit in the event of the cancellation or termination hereof. At closing, the Purchase Price shall be payable in cash, less the Deposit, and subject to prorations and adjustments set forth herein. Said "Deposit" shall be credited to Purchaser at Closing assuming Section 2 Purchase Price and Payment is met. 4. EFFECTIVE DATE. The date of this Agreement (the "Effective Date") shall be the date when the last one of the SELLER and PURCHASER has signed this Agreement. 5. CLOSING. The PURCHASER'S obligation to close on the purchase of the Property is contingent on the following: a) PURCHASER obtaining site plan approval from the City of Boynton Beach, Florida (the "City") to build up to 75 residential units for occupancy by low income households along with commercial retail space on on the first floor on the Property. b) Prior to the expiration of the Nine Percent (9%) Tax Credit Allocation Period (as hereinafter defined), PURCHASER receiving an invitation to underwriting for an award of low-income housing tax credits ("LIHTC") from the Florida Housing Finance Corporation ("Florida Housing"); and C) Seller delivering marketable title to the Property subject only to those title exceptions acceptable to the PURCHASER, all as more specifically set forth herein. d) Closing is contingent upon Purchaser's successful closing on the Third Party parcels. Closing is also contingent upon Seller receiving copies of all fully executed Third Party parcel contracts within 5 business days of executing the Third Party Purchase Agreements. 6. NINE PERCENT (9%) TAX CREDIT APPLICATION PERIOD. Prior to the last date of the applicable Florida Housing Request for Applications, in response to which the PURCHASER submits an application for LIHTC's that includes this Agreement, which is estimated to be not later than December 8, 2016 (the "Tax Credit Application Period"), the PURCHASER shall apply for an allocation of 9% LIHTC's from Florida Housing (the "Allocation"). 7. ALLOCATION. PURCHASER shall have until June 30, 2017 in which to obtain the Allocation. The Allocation shall be evidenced by an invitation to credit underwriting issued by Florida Housing. In the event PURCHASER does not receive the Allocation and does not wish to #4462351 v1 30364-0000 00715764-1 PURCHASE AGREEMENT/ NUROCK/MLKSouth Page 3 of 17 proceed with the acquisition of the Property, the Deposit shall be fully refundable to PURCHASER within five (5) business days after PURCHASER provides written notice to SELLER that it has failed to obtain the Allocation. 8. CLOSING DATE. The Closing shall take place on June 30, 2017 at such location to which the parties may mutually agree in writing. 8.1. Closing Extensions. PURCHASER shall have the option to purchase from SELLER one six (6) month extension of the Closing Date ("Closing Extension") for the sum of Twenty Five Thousand Dollars and 00/100 ($25,000.00), which shall be non-refundable to PURCHASER except for SELLER'S default. 9. TITLE TO BE CONVEYED. At Closing, SELLER shall convey to PURCHASER, by Warranty Deed complying with the requirements of the Title Commitment (hereinafter defined), valid, good, marketable and insurable title in fee simple to the Property, free and clear of any and all liens, encumbrances, conditions, easements, assessments, restrictions and other conditions except only the following (collectively, the "Permitted Exceptions"): (a) general real estate taxes and special assessments for the year of Closing and subsequent years not yet due and payable; (b) covenants, conditions, easements, dedications, rights-of-way and matters of record included on the Title Commitment or shown on the Survey (defined in Section 10.3), to which PURCHASER fails to object, or which PURCHASER agrees to accept. 10. INVESTIGATION OF THE PROPERTY. For a period until January 31, 2017 ("Feasibility Period"), PURCHASER and PURCHASER'S agents, employees, designees, Contractors, surveyors, engineers, architects, attorneys and other consultants (collectively, "Agents"), shall have the right, at PURCHASER'S expense, to make inquiries of, and meet with members of Governmental Authorities regarding the Property and to enter upon the Property, at any time and from time to time with reasonable notice to SELLER and so long as said investigations do not result in a business interruption, to perform any and all physical tests, inspections, and investigations of the Property, including but not limited to Phase I and Phase II environmental investigations, which PURCHASER may deem necessary. During the Feasibility Period, PURCHASER may elect, in PURCHASER'S sole and absolute discretion, to terminate this Agreement. If PURCHASER elects to terminate this Agreement in accordance with this Section, PURCHASER shall: (i) leave the Property in substantially the condition existing on the Effective Date, subject to such disturbance as was reasonably necessary or convenient in the testing and investigation of the Property; (ii) to the extent practicable, shall repair and restore any damage caused to the Property by PURCHASER'S testing and investigation; and (iii) release to SELLER, at no cost, all reports and other work generated as a result of the PURCHASER'S testing and investigation. PURCHASER hereby agrees to indemnify and hold SELLER harmless from and against all claims, losses, expenses, demands and liabilities, including, but not limited to, reasonable attorney's fees, for nonpayment for services rendered to PURCHASER (including, without limitation, any construction liens resulting therefrom) or for damage to persons or property (subject to the limitation on practicability provided above) arising out of PURCHASER'S #4462351 v1 30364-0000 00715764-1 PURCHASE AGREEMENT/ NUROCK/MLKSouth Page 4 of 17 investigation of the Property. PURCHASER'S obligations under this Section shall survive the termination, expiration or Closing of this Agreement. 10.1 Seller's Documents. SELLER shall deliver to PURCHASER the following documents and instruments within five (5) days of the Effective Date of this Agreement: any existing title policies, appraisals, copies of any reports or studies (including environmental, engineering, surveys, soil borings and other physical reports) in SELLER'S possession or control with respect to the physical condition of the Property, copies of all permits, authorizations and approvals issued by Governmental Authorities for the Property and any correspondence which discloses claims, allegations or adverse information regarding the Property or SELLER with respect to the Property. 10.2 Title Review. Within ninety (90) days of the Effective Date, PURCHASER 'S counsel, as closing agent for the transaction contemplated herein (the "Closing Agent") shall obtain, at the PURCHASER'S expense, from a Title Company chosen by PURCHASER (hereinafter "Title Company"), a Title Commitment covering the Property and proposing to insure PURCHASER in the amount of the Purchase Price subject only to the Permitted Exceptions, together with complete and legible copies of all instruments identified as conditions or exceptions in Schedule B of the Title Commitment. PURCHASER shall examine the Title Commitment and deliver written notice to SELLER no later than twenty (20) days after receipt of the Title Commitment notifying SELLER of any objections PURCHASER has to the condition of title (hereinafter "PURCHASER'S Title Objections"). If PURCHASER fails to deliver PURCHASER'S Title Objections to SELLER within the aforesaid review period, title shall be deemed accepted subject to the conditions set forth in the Title Commitment. If PURCHASER timely delivers the PURCHASER'S Title Objections, then SELLER shall have thirty (30) days to diligently and in good faith undertake all necessary activities to cure and remove the PURCHASER'S Title Objections (hereinafter "Cure Period"). Notwithstanding anything to the contrary in this Section, SELLER shall have an affirmative duty to satisfy all title requirements which are liquidated claims, outstanding mortgages, judgments, taxes (other than taxes which are subject to adjustment pursuant to this Agreement), or are otherwise curable by the payment of money without resort to litigation (collectively, the "Mandatory Objections"), which may, at SELLER'S election, be done at Closing by the Closing Agent's withholding of the applicable amount from the proceeds of sale. In the event that SELLER is unable to cure and remove, or cause to be cured and removed, the PURCHASER'S Title Objections which are not Mandatory Objections within the Cure Period to the satisfaction of PURCHASER, then PURCHASER, in PURCHASER'S sole and absolute discretion, shall have the option of (i) extending the Cure Period and the Closing for one additional thirty (30) day period at no cost to PURCHASER, or (ii) accepting the Title to the Property as of the time of Closing or (iii) canceling and terminating this Agreement, in which case, any Deposits shall be returned to PURCHASER and the Parties shall have no further obligations or liability hereunder, except for those expressly provided herein to survive termination of this Agreement. Prior to the Closing, PURCHASER shall have the right to cause the Title Company #4462351 v1 30364-0000 00715764-1 PURCHASE AGREEMENT/ NUROCK/MLKSouth Page 5 of 17 to issue an updated Title Commitment ("Title Update") covering the Property. If any Title Update contains any conditions which did not appear in the Title Commitment, and such items render title unmarketable, PURCHASER shall have the right to object to such new or different conditions in writing prior to Closing. All rights and objections of the Parties with respect to objections arising from the Title Update shall be the same as objections to items appearing in the Title Commitment, subject to the provisions of this Section. 10.3 Survey Review. PURCHASER, at PURCHASER'S expense, may obtain a current boundary survey (the "Survey") of the Property, indicating the number of acres comprising the Property to the nearest 1/100th of an acre. If the Survey discloses encroachments on the Property or that improvements located thereon encroach on setback lines, easements, lands of others or violate any restrictions, covenants of this Agreement, or applicable governmental regulations, the same shall constitute a title defect and shall be governed by the provisions of Section 10.2 concerning title objections. 11. CONDITIONS TO CLOSING. PURCHASER shall not be obligated to close on the purchase of the Property unless each of the following conditions (collectively, the "Conditions to Closing") are either fulfilled or waived by PURCHASER in writing: 11.1 Representations and Warranties. All of the representations and warranties of SELLER contained in this Agreement shall be true and correct as of Closing. 11.2 Pending Proceedings. At Closing, there shall be no litigation or administrative agency or other governmental proceeding of any kind whatsoever involving the Property or the SELLER, pending or threatened, which has not been disclosed, prior to closing, and accepted by PURCHASER. 11.3 Compliance with Laws and Regulations. The Property shall be in compliance with all applicable federal, state and local laws, ordinances, rules, regulations, codes, requirements, licenses, permits and authorizations as of the date of Closing. 11.4 Construction Permit Approval. The SELLER will cooperate with the PURCHASER with regard to signing and processing any applications and forms required by the City or other authorities having jurisdiction over the PROPERTY to obtain building permit approval and such other design and construction documents as may be reasonably required by PURCHASER to permit the Project to be constructed and operated. The PURCHASER will be responsible for all costs associated with the formulation of the Project's design and construction documents as well any and all applicable permit fees associated with the Project. 11.5 Community Redevelopment Agency Contribution. The Boynton Beach Community Redevelopment Agency (CRA) agreed to commit $1 million toward the acquisition and development of Heritage City View, mixed use senior development along Martin Luther King Boulevard, in the Heart of Boynton. Said contribution will be in the form of a Grant to #4462351 v1 30364-0000 00715764-1 PURCHASE AGREEMENT/ NUROCK/MLKSouth Page 6 of 17 meet Florida Housing Finance Corporation Local Government Contribution Preference. 12. CLOSING DOCUMENTS. The SELLER shall prepare, or cause to be prepared, the Closing Documents set forth in this Section, except for documents prepared by the Title Company. At Closing, SELLER shall execute and deliver, or cause to be executed and delivered to PURCHASER the following documents and instruments: 12.1 Deed and Authorizing Resolutions. SELLER shall furnish a Warranty Deed (the "Deed") conveying to PURCHASER valid, good, marketable and insurable fee simple title to the Property free and clear of all liens, encumbrances and other conditions of title other than the Permitted Exceptions, together with such resolutions or other applicable authorizing documents evidencing approval of the transaction by the SELLER's governing body as the Closing Agent and the title Company may require. 12.2 Seller's Affidavits. SELLER shall furnish to PURCHASER an owner's affidavit attesting that, to the best of its knowledge, no individual or entity has any claim against the Property under the applicable construction lien law, that the SELLER will not record or enter into documents affecting the Property after the last effective date on the Title Commitment, and that there are no parties in possession of the Property other than SELLER. SELLER shall also furnish to PURCHASER a non -foreign affidavit with respect to the Property. In the event SELLER is unable to deliver its affidavits referenced above, the same shall be deemed an uncured Title Objection. 12.3 Closing Statement. A closing statement setting forth the Purchase Price, all credits, adjustments and prorations between PURCHASER and SELLER, all costs and expenses to be paid at Closing, and the net proceeds due SELLER, which SELLER shall also execute and deliver at Closing. 12.4 Corrective Documents. Documentation required to clear title to the Property of all liens, encumbrances and exceptions, if any, other than Permitted Exceptions. 12.5 Additional Documents. Such other documents as PURCHASER or the Title Company may reasonably request that SELLER execute and deliver, and any other documents required by this Agreement or reasonably necessary in order to close this transaction and effectuate the terms of this Agreement. 13. PRORATIONS, CLOSING COSTS AND CLOSING PROCEDURES. 13.1 Prorations. Taxes for the Property shall be prorated through the day before Closing. Cash at Closing shall be increased or decreased as may be required by prorations to be made through the day prior to Closing. Taxes shall be prorated based upon the current year's tax with due allowance made for maximum allowable discount. If Closing occurs at a date when the current year's millage is not fixed and current year's assessment is available, #4462351 v1 30364-0000 00715764-1 PURCHASE AGREEMENT/ NUROCK/MLKSouth Page 7 of 17 taxes will be prorated based upon such assessment and prior year's millage. If current year's assessment is not available, then taxes will be prorated on prior year's tax. A tax proration based on an estimate shall, at request of either party, be readjusted upon receipt of tax bill which discloses an actual difference in the amount of the taxes estimated at Closing that exceeds $1,000. 13.2 Closing Costs. SELLER shall pay for documentary stamps on the deed, recording the deed and any cost associated with curing title. Purchaser shall pay all other closing expenses. Each party shall be responsible for their respective attorneys' fees. 13.3 Closing Procedure. PURCHASER shall fund the Purchase Price subject to the credits, offsets and prorations set forth herein. SELLER and PURCHASER (as applicable) shall execute and deliver to the Closing Agent the Closing Documents. The Closing Agent shall, at Closing: (i) disburse the sale proceeds to SELLER; (ii) deliver the Closing Documents and a "marked -up" Title Commitment to PURCHASER, and promptly thereafter, record the Deed and other recordable Closing Documents in the appropriate public records. 13.4 Existing Mortgages and Other Liens. At Closing, SELLER shall obtain, or cause to be obtained, satisfaction or release of record of all mortgages, liens and judgments applicable to and encumbering the Property. 14. REPRESENTATIONS, COVENANTS AND WARRANTIES. SELLER hereby represents, covenants and warrants to PURCHASER, as of the Effective Date and as of the Closing Date, as follows: 14.1 Authority. The execution and delivery of this Agreement by SELLER and the consummation by SELLER of the transaction contemplated by this Agreement are within SELLER'S capacity and all requisite action has been taken to make this Agreement valid and binding on SELLER in accordance with its terms. The person executing this Agreement on behalf of SELLER has been duly authorized to act on behalf of and to bind SELLER, and this Agreement represents a valid and binding obligation of SELLER. 14.2 Title. SELLER is and will be on the Closing Date, the owner of valid, good, marketable and insurable fee simple title to the Property, free and clear of all liens, encumbrances and restrictions of any kind, except the Permitted Exceptions (and encumbrances of record which will be discharged at Closing). 14.3 Litigation. There are no actions, suits, proceedings or investigations pending or threatened against Seller or the Property affecting any portion of the Property, including but not limited to condemnation actions. 14.4 Parties in Possession. There are no parties other than SELLER in possession or with a right to possession of any portion of the Land. #4462351 v1 30364-0000 00715764-1 PURCHASE AGREEMENT/ NUROCK/MLKSouth Page 8 of 17 14.4 Acts Affecting Property. From and after the Effective Date, SELLER will refrain from (a) performing any grading, excavation, construction, or making any other change or improvement upon or about the Property; (b) creating or incurring, or suffering to exist, any mortgage, lien, pledge, or other encumbrances in any way affecting the Property other than the Permitted Exceptions (including the mortgages, liens, pledges, and other encumbrances existing on the Effective Date) and (c) committing any waste or nuisance upon the Property. 15. DEFAULT. 15.1 PURCHASER'S Default. In the event that this transaction fails to close due to a wrongful refusal to close or default on the part of PURCHASER, SELLER shall be entitled to retain the Deposit, and neither PURCHASER nor SELLER shall have any further obligation or liabilities under this Agreement, except for those expressly provided to survive the termination of this Agreement; provided, however, that PURCHASER shall also be responsible for the removal of any liens asserted against the Property by persons claiming by, through or under PURCHASER. 15.2 SELLER'S Default. In the event that SELLER fails to fully and timely to perform any of its obligations and covenants hereunder or if SELLER is in breach of any representations herein, PURCHASER may, at its option (i) declare SELLER in default under this Agreement in which event PURCHASER may terminate this Agreement, receive back its Deposit and neither party shall have any further rights hereunder or (ii) seek specific performance. 15.3 Notice of Default. Prior to declaring a default and exercising the remedies described herein, the non -defaulting Party shall issue a notice of default to the defaulting Party describing the event or condition of default in sufficient detail to enable a reasonable person to determine the action necessary to cure the default. The defaulting Party shall have fifteen (15) days from delivery of the notice during which to cure the default, provided, however, that as to a failure to close, the cure period shall only be three (3) business days from the delivery of notice. Both Parties agree that if an extension is requested, such extension shall not be unreasonably withheld. If the default has not been cured within the aforesaid period, the non -defaulting Party may exercise the remedies described above. 15.4 Survival. The provisions of this Section 15 shall survive the termination of this Agreement. 16. NOTICES. All notices required in this Agreement must be in writing and shall be considered delivered when received by certified mail, return receipt requested, or personal delivery to the following addresses: If to Seller: Boynton Beach Community Redevelopment Agency Executive Director, Michael Simon #4462351 v1 30364-0000 00715764-1 PURCHASE AGREEMENT/ NUROCK/MLKSouth Page 9 of 17 710 N. Federal Highway Boynton Beach, Florida 33435 With a copy to: Kenneth Dodge, Esquire Lewis, Longman & Walker, P.A. 515 North Flagler Drive, Suite 1500 West Palm Beach, Florida 33401 If to Purchaser: Heritage at City View Housing Partners, LP Attention: Robby D. Block, Authorized Agent 8794 Boynton Beach Blvd., Suite 219 Boynton Beach, FL 33472 Telephone: (561) 990-2614 Facsimile: (678) 218-1520 Email: rblock@nurock.com If to Purchaser: The NuRock Companies Attention: Robert Hoskins 800 N. Point Parkway, Suite 125 Alpharetta, GA 30005 Telephone: (770) 552-8070 Facsimile: (770) 552-8748 Email: With a copy to: Arnall Golden Gregory Attention: Mark Gould Suite 2100 171 Seventeenth St. NW Atlanta, GA 30363-1031 Telephone: (404) 873-8782 Facsimile: (404) 873-8783 Email: 17. BINDING OBLIGATION/ASSIGNMENT. The terms and conditions of this Agreement are hereby made binding on, and shall inure to the benefit of, the successors and permitted assigns of the Parties hereto. SELLER may not assign its interest in this Agreement without the prior written consent of PURCHASER, which shall not be unreasonably withheld. This Agreement may be freely assigned by PURCHASER to a wholly owned affiliate assignee of PURCHASER, and thereafter PURCHASER'S assignee shall be obligated to close the transaction contemplated herein as if such assignee were the original party to this Agreement. Any assignment by PURCHASER to an unrelated party shall be subject to the written approval of SELLER, which shall not be unreasonably withheld. #4462351 v1 30364-0000 00715764-1 PURCHASE AGREEMENT/ NUROCK/MLKSouth Page 10 of 17 18. RISK OF LOSS. In the event the condition of the Property, or any part thereof, is materially altered by an act of God or other natural force beyond the control of SELLER, PURCHASER may elect, as its sole option, to terminate this Agreement and receive a refund of the Deposit and the parties shall have no further obligations under this agreement, or PURCHASER may accept the Property without any reduction in the value of the Property. In the event of the institution of any proceedings by any Governmental Authority which shall relate to the proposed taking of any portion of the Property by eminent domain prior to Closing, or in the event of the taking of any portion of the Property by eminent domain prior to Closing, SELLER shall promptly notify PURCHASER and PURCHASER shall thereafter have the right and option to terminate this Agreement by giving SELLER written notice of PURCHASER's election to terminate within fifteen (15) days after receipt by PURCHASER of the notice from SELLER. SELLER hereby agrees to furnish PURCHASER with written notice of a proposed condemnation within two (2) business days after SELLER's receipt of such notification. Should PURCHASER terminate this Agreement, the Deposit shall immediately be returned to PURCHASER and thereafter the Parties shall be released from their respective obligations and liabilities hereunder. Should PURCHASER elect not to terminate, the parties hereto shall proceed to Closing and SELLER shall assign all of its right, title and interest in all awards in connection with such taking to PURCHASER. 19. BROKER FEES. The Parties hereby confirm that neither of them has dealt with any broker in connection with the transaction contemplated by this Agreement. Each Party shall indemnify, defend and hold harmless the other Party from and against any and all claims, losses, damages, costs or expenses (including, without limitation, attorney's fees) of any kind or character arising out of or resulting from any agreement, arrangement or understanding alleged to have been made by either Party or on its behalf with any broker or finder in connection with this Agreement. However, SELLER'S indemnification obligations shall not exceed the statutory limits provided within Section 768.28, Florida Statutes, and CRA does not otherwise waive its sovereign immunity rights. The provisions of this Section shall survive Closing or termination of this Agreement. 20. ENVIRONMENTAL CONDITIONS. To the best of SELLER'S knowledge, the Property and the use and operation thereof are in compliance with all applicable county and governmental laws, ordinances, regulations, licenses, permits and authorizations, including, without limitation, applicable zoning and environmental laws and regulations. 21. DEVELOPMENT AND SALE OF THE PROPERTY. SELLER and PURCHASER acknowledge that the Property is being sold to PURCHASER for the sole purpose of developing a multi -family development. 21.1 Seller Design Approval. The PURCHASER agrees that the SELLER shall have the right to reasonably approve the design of the Project. PURCHASER shall submit plans to the SELLER for review prior to submission to the City for approval. SELLER shall provide #4462351 v1 30364-0000 00715764-1 PURCHASE AGREEMENT/ NUROCK/MLKSouth Page 11 of 17 comments or approval of the design to PURCHASER at its next regularly scheduled Board meeting after PURCHASER submits plans for approval. 21.2 Required Project Improvements. . PURCHASER shall incorporate the following design improvements into the Project: a) If requested or required by the SELLER, the Project may be designed to be a gated community to enhance the value of the Property. A decorative fence may be installed around the buildings comprising the PROJECT to create an enclosed space. If requested or required by the SELLER, a mechanical gate may be installed at the entry and exit of the Project requiring proof of residency for entry. b) The Project shall have a 8' sidewalk constructed around the entirety of the Project within the public right-of-way. c). The Project shall install streetlights approved in design by the SELLER and City, placed outside the perimeter of the Project in the City right-of-way at intervals according to the City code. d). The Project shall have trees in species and caliper approved by the City and SELLER installed outside the perimeter of the -Project within the City right-of-way at intervals acceptable to the City and SELLER. 21.3 Limitation on Use of Property. SELLER acknowledges that the Property will be rezoned to Mixed -Use Low 2. 22. DEVELOPMENT TIMELINE. The following events must be documented in writing and provided to the SELLER upon completion of each action (collectively the "Project Elements"). 2017. a) Submission of application to the City for site plan approval by June 30, b) Achievement of site plan approval by the City by December 8, 2017. C) Approval of financing for the Project including the construction loan and permanent financing commitment in an amount sufficient to develop the Project no later than twenty four (24) months following the Effective Date. PURCHASER shall provide SELLER proof of financing for the Project within this timeframe. d) Submission of construction documents to the City for a building permit within seven (7) months following receipt of a binding commitment for the syndication or sale of LIHTC's. Proof of permit application fees paid will be provided to the SELLER upon submission to the City. Upon City issuance of the building permit a copy will be provided to SELLER. #4462351 v1 30364-0000 00715764-1 PURCHASE AGREEMENT/ NUROCK/MLKSouth Page 12 of 17 e) Groundbreaking ceremony and commencement of construction shall occur within two (2) months following the issuance of a building permit. SELLER will be in attendance at the ceremony and participate in its planning. f) Temporary or permanent certificate of occupancy to be provided within eighteen (18) months following building permit issuance. 22.1 Default with Regard to Project Elements. If one or more of the required Project Elements is not achieved as required in this Section and/or if the timeline outlined herein is not strictly met, and PURCHASER has not provided SELLER with a written notice explaining the reason or circumstances not under the control of PURCHASER that have prevented PURCHASER from meeting the timeline, and SELLER has not agreed in writing to the same and which approval shall not be reasonably withheld, then (a) if such events are contemplated to occur following the Closing but fail to occur as required, then the PURCHASER shall be required to reconvey the Property to the SELLER, this Agreement shall be terminated, and SELLER shall be released from any and all obligations under this Agreement and (b) if such events are contemplated to occur prior to Closing but fail to occur as required, then it shall be a default hereunder and treated as provided in Section 15, above. The parties understand and agree that in such instance SELLER shall be entitled to the Deposit in full and final satisfaction of PURCHASER's obligations hereunder. SELLER agrees to work reasonably with PURCHASER in working within the timeframes set forth above, but PURCHASER and SELLER agree that time is of the essence. 23. MISCELLANEOUS. 23.1 General. This Agreement, and any amendment hereto, may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall, together, constitute one and the same instrument. The section and paragraph headings herein contained are for the purposes of identification only and shall not be considered in construing this Agreement. Reference to a Section shall be deemed to be a reference to the entire Section, unless otherwise specified. No modification or amendment of this Agreement shall be of any force or effect unless in writing executed by Parties. This Agreement sets forth the entire agreement between the Parties relating to the Property and all subject matter herein and supersedes all prior and contemporaneous negotiations, understandings and agreements, written or oral, between the Parties. This Agreement shall be interpreted in accordance with the laws of the State of Florida. The Parties hereby agree that jurisdiction of any litigation brought arising out of this Agreement shall be in the Fifteenth Judicial Circuit in and for Palm Beach County, Florida, or, should any cause of action be limited to federal jurisdiction only, in the United States District Court for the Southern District Court of Florida. 23.2 Computation of Time. Any reference herein to time periods which are not measured in business days and which are less than six (6) days, shall exclude Saturdays, Sundays and legal holidays in the computation thereof. Any time period provided for in this #4462351 v1 30364-0000 00715764-1 PURCHASE AGREEMENT/ NUROCK/MLKSouth Page 13 of 17 Agreement which ends on a Saturday, Sunday or legal holiday shall extend to 5:00 p.m. on the next full business day. Time is of the essence in the performance of all obligations under this Agreement. Time periods commencing with the Effective Date shall not include the Effective Date in the calculation thereof. 23.3 Waiver. Neither the failure of a party to insist upon strict performance of any of the terms, provisions, covenants, agreements and conditions hereof, nor the acceptance of any item by a party with knowledge of a breach of this Agreement by the other party in the performance of their respective obligations hereunder, shall be deemed a waiver of any rights or remedies that a party may have or a waiver of any subsequent breach or default in any of such terms, provisions, covenants, agreements or conditions. This paragraph shall survive termination of this Agreement and the Closing. 23.4 Construction of Agreement. The Parties to this Agreement, through counsel, have participated freely in the negotiation and preparation hereof. Neither this Agreement nor any amendment hereto shall be more strictly construed against any of the Parties. As used in this Agreement, or any amendment hereto, the masculine shall include the feminine, the singular shall include the plural, and the plural shall include the singular, as the context may require. Provisions of this Agreement that expressly provide that they survive the Closing shall not merge into the Deed. 23.5 Severability. If any provision of this Agreement or the application thereof shall, for any reason and to any extent, be invalid or unenforceable, neither the remainder of this Agreement nor the application of the provision to other persons, entities or circumstances shall be affected thereby, but instead shall be enforced to the maximum extent permitted by law. The provisions of this Section shall apply to any amendment of this Agreement. 23.6 Handwritten Provisions. Handwritten provisions inserted in this Agreement and initialed by SELLER and PURCHASER shall control all printed provisions in conflict therewith. 23.7 Waiver of Jury Trial. As an inducement to PURCHASER agreeing to enter into this Agreement, PURCHASER and SELLER hereby waive trial by jury in any action or proceeding brought by either party against the other party pertaining to any matter whatsoever arising out of or in any way connected with this Agreement. 23.8 Attorneys Fees and Costs. Should it be necessary to bring an action to enforce any of the provisions of this Agreement, reasonable attorneys' fees and costs, including those at the appellate level, shall be awarded to the prevailing party. 23.9 Binding Authority. Each party hereby represents and warrants to the other that each person executing this Agreement on behalf of the PURCHASER and SELLER has #4462351 v1 30364-0000 00715764-1 PURCHASE AGREEMENT/ NUROCK/MLKSouth Page 14 of 17 full right and lawful authority to execute this Agreement and to bind and obligate the party for whom or on whose behalf he or she is signing with respect to all provisions contained in this Agreement. 23.10 No Recording. This Agreement shall not be recorded in the Public Records of Palm Beach County, Florida. 23.11 Survival. The covenants, warranties, representations, indemnities and undertakings of SELLER set forth in this Agreement, shall survive the Closing, the delivery and recording of the Deed and PURCHASER'S possession of the Property. 23.12 SELLER Attorneys' Fees and Costs. SELLER acknowledges and agrees that SELLER shall be responsible for its own attorneys' fees and all costs, if any, incurred by SELLER in connection with the transaction contemplated by this Agreement. 23.13 Public Records. SELLER_is public agency subject to Chapter 119, Florida Statutes. The PURCHASER shall comply with Florida's Public Records Law. Specifically, the PURCHASER shall: a. Keep and maintain public records that ordinarily and necessarily would be required by the SELLER in connection with this Agreement; b. Provide the public with access to such public records on the same terms and conditions that the SELLER would provide the records and at a cost that does not exceed that provided in chapter 119, Fla. Stat., or as otherwise provided by law; C. Ensure that public records that are exempt or that are confidential and exempt from public record requirements are not disclosed except as authorized by law; and d. Meet all requirements for retaining and providing public records and transfer to the SELLER, at no cost, all public records in possession of the PURCHASER upon termination of the contract and destroy any duplicate public records that are exempt or confidential and exempt. All records stored electronically must be provided to the SELLER in a format that is compatible with the information technology systems of the SELLER. SELLER shall, upon request, provide guidance to PURCHASER as to the public records keeping and reporting duties that are imposed upon PURCHASER as provided above and shall take all steps reasonably required to assist PURCHASER in not violating them. The failure of PURCHASER to comply with the provisions set forth in this Agreement shall constitute a Default and Breach of this Agreement. If PURCHASER fails to cure the default within seven (7) days' notice from the SELLER the SELLER may terminate the Agreement. #4462351 v1 30364-0000 00715764-1 PURCHASE AGREEMENT/ NUROCK/MLKSouth Page 15 of 17 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective date. PURCHASER: HERITAGE AT CITY VIEW HOUSING PARTNERS, LP Printed Name: Robby D. Block Title: Authorized Agent for Partnership Date: WITNESS: Printed Name: WITNESS: Printed Name: ESCROW AGENT Lewis, Longman & Walker, P.A. Printed Name: Date: #4462351 v1 30364-0000 00715764-1 SELLER: BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY Printed Name: Steven B. Grant Title: Mayor Date: WITNESS: Printed Name: WITNESS: Printed Name: PURCHASE AGREEMENT/ NUROCK/MLKSouth Page 16 of 17 EXHIBIT "A" LEGAL DESCRIPTION SELLER Owned Parcels: • 118 E. Martin Luther King Jr. Blvd. - 08-43-45-21-10-005-0050 - Lot 5, Blk 5, PB Country Club Ests • E. Martin Luther King Jr. Blvd. - 08-43-45-21-10-005-0090 - Lot 9, Block 5 of Palm Beach Country Club Ests • E. Martin Luther King Jr. Blvd. - 08-43-45-21-10-005-0100 - Lot 10, 11, 12 & 13, Block 5 of Palm Beach Country Club Ests • 206 E. Martin Luther King Jr. Blvd. - 08-43-45-21-04-000-0202 - South 100 ft. of the West 5 ft. of Lot 20, 21 & 22, Robert Wells Subdivision • 117 NE 91" Ave. - 08-43-45-21-10-004-0050 - Lot 5, Blk 4, PB Country Club Ests • 123 NE 91" Ave. - 08-43-45-21-10-004-0060 - Lot 6, Blk 4, PB Country Club Ests • 129 NE 91h'Ave. - 08-43-45-21-10-004-0080 - Lot 8, Blk 4, PB County Club Ests • NE 91" Ave. - 08-43-45-21-10-004-0090 - Lot 9, Blk 4, PB County Club Ests • 141 NE 91" Ave. - 08-43-45-21-10-004-0100 - Lot 10, Blk 4, PB County Club Ests • 151 NE 91" Ave. - 08-43-45-21-10-004-0130 - Lot 13, Block 4, Palm Beach Country Club Ests THIRD PARTY PARCELS: #4462351 v1 30364-0000 00715764-1 PURCHASE AGREEMENT/ NUROCK/MLKSouth Page 17 of 17 EXHIBIT "A" LEGAL DESCRIPTION #4462351 v1 30364-0000 00715764-1 r CRA BOARD MEETING OF: May 9, 2017 1 Consent Agenda I I Old Business I X I New Business I I Legal Information Only CRAAB AGENDA ITEM: XIV.A. SUBJECT: Community Caring Center 1St and 2nd Quarterly Reports SUMMARY: The CRA Board approved on December 14, 2016 an agreement to fund the Community Caring Center Incubator Program for a total of $70,000 (Attachment 1). Under the terms of the agreement, the Community Caring Center is required to provide a quarterly report summarizing the deliverables of the agreement. Attachment II is a copy of the report for the period of October 1, 2016 through March 30, 2017. After reviewing the documents, the Community Caring Center is in compliance with all required deliverables (Attachment III). FISCAL IMPACT: $35,000 budgeted in FY 2016-2017, Project Fund, 02-58500-470 CRA PLAN/PROJECT/PROGRAM: 2016 Boynton Beach Community Redevelopment Plan CRAAB RECOMMENDATION: N/A CRA BOARD MOTION/OPTIONS: 1. Review and approve the Community Caring Center report and payment of $35,000 for the period October 1, 2016 through March 30, 2017. 2. Do not approve. Digitally signed by Michael Simon Michael Simon em cn=Michael Simon, o, ou, email=simonm@bbfl.us, c=US Date: 2017.05.05 14:31:02 -04'00' Michael Simon, Interim Executive Director ATTACHMENT :� : + itj Name.Pdnt r !! R .+!il 'lc 11 ATTACHMENT II •Center c)FGfe4ter BoYnton Beachr• i., A. Jab Creation - 10 hires to date there we 8 hires 80% we Boynton Beach Residents, oil are part-time averaging i. of age •afterschoolwork,and i Sarah. rdentif ication attached. I' t • . � i y. r 2. Arleen Benain, 137 SE 3rd Ave, Boynton Beachhas been asked to • . ate her driver's license, a copy of her FPL Bill and W4 arc attached to establish her Boynton address 3. 5arah Boothe, 660 Manalee Bay Or, Boynton Beach - Sarah has been asked to w • • t.# • rt # . r • i r t n i .. w * r.• 4. itevon Petty, SE 5th Ave, Apt 71, Boynton Beach, pending student id r i. i # wr • 7dt S. &Ufthw5r Thrd"w, hired 2 employees Kelly and Peter in 2017 that we working atthe incubator, both Pending are Boynton i 'n residents. 1 1 / di cuments Jean rlie M F#4 hired 2017 } we •o not have r or a # a i # . rehired as well as • c IOWsprovided for 2016. Remember,andclosedhis businesslost March,d• itstartsfranchise rehiredattachedff 1099 bathemployees .l Community CaringCenterofGreaterBoyntonBeach,2016117 B. Cbmftrly Workshops vWve ,Y 2 ww*sMp for each quarter 1 follows: ist A , Qdmhw_ 13 ` Aftw- 7 Incubatorsattended Keishi Cakes, Taste . SomethingSpecial, Magick InYour Kitchen, The Good Worm, Gourmet R Y Y• / 10t 1 __u #.,'ltd # /Workshop,a attended representing: Y Good Y RWorm,e . Cakes 1z1 M .Manfor i attended representing: Miss Ts rntl Foods, Taste of Something Special,Y Y a Calm, rnf usions Cafi, Soon March__2 -"Tax Seam Is Here" 0 attended representingInfusionsCaftand Taste l C 01"e -on -one Cowiltations have been provided October 116 * toassess needsfor this yew,incubator clients attended oh/g including ■ I ! program Y see how each couldwork together. November 2016: Presley Foods, of Love, Taste / Something Special, Cakes, Good RWorm December 2016: Love, I/ Something Special, Y Cakes, The Good Worm January i17; Am%/stil Chunks of Love, A Taste of Something Special, Keisha Special,Ckkes, The Good Worm, Infusions Caft, LLC February 2017: Amyls'Ul Chunks of Love, A Taste of Something Cakes, Good Worm, March 2017: ArWs'Ul Chunks Mf Love, A Taste / SomethingSpecial, R; Cakes, Good Worm, Infusions Y f CN ?�a� �l ,�� z y , ,'� �� .� i7`� �� f�• � sty �?'` � x �� ,• �, �, �s �� r ' # Community of Greater BoyntonBeach, 10. SWWt Baker Street, Inc., Miami, 33160, Sari is an attorney and has an e&remely laqp case load this season, Her production Latefy she is startinginto a routine Shirley11. TU Country Gourmet, LAntana 33462, is in full swing husband.Green Market opin, after a series of health issue between both her and •Tom'srDelray 33444, Jerrod and Belindacommissary. For the. most part they are at the Saltwater Brewery every Saturday from noon to 5 pin. They were in the Delray Affair this month and expect to be complete with the construction on the now location at 1701 W. AtlanticAve, this providingCRA has been 1 assistance. 5.kaz, ic, rtn t�' rnuv�FQ� `�`, I�au� ;�� mit ^daa r�� Q��'�� '. z� 1e SSS I' a 3,-1Y11lk75?1 '�!("��6 tIY'r4ti�:1IIYlT; if�`.tiFx�ua �A�:3M1 y�(M ven Uy li( y1� W�`f'Rb�tf��tb �lR(.�Xao i4iS,t �dt90 11`ao �v�-U(WS4SS R��P �Qt4r.SA`�`�i'tb,�i ly 4Ysdil�l�}i' �4�SS'fr�ll�Ul{i<3 dYb ��ro its c. it S4a�`<1trlt �Fv 11�41i11s4� 1141I�1�i lS{u �mi t(e i1��a4t'-7 Taste r'Spedal,f # see below 14. Catering On T%e Move. LLC, Boynton. 33436, Paul license in October, . at I trainsthat .high-end catersl# country I in Wellington as communities throughout to .. a dynamic dw. His cuisine is as sophisticated as A Perfect Package. He makes his own ciabatta breads and roasted soups. Paul has had three events: Nevis Years Eve, One in February i # i[ and has another district.generally around 200 to 300 guests. A copy of his caterers license is allzichad. Tax returns won't be until next year. 15. Kelsha Odm, Boynton 33426, Kelsho Gaines has been doing green markets and other events like the Mix and Mingles. She is a new mom and has opted not to push her business while the baby is so young. She is a Boynton resident within the CRA . coining to us this fall, was operating under cottage industry regulations. want M become of bakery 16. The l J . Worm, Lake Worth. • Yawme Tusdisco come . us through the Sunset Marketplace last yew. She let her registration corporation become and has beert doing . # Nutrition Program Director. has been retailing her worm juice, and 9 33= Community Caring Center dGmater Boynton Beach, Inc. 2616/ 17 � � eo, for the same reason as above, the bogs are being retailed only so we we removing them from the roster - Operating Import/Export Buses from home dr. I* I tiO74T.J 54 rk .7.714 We --I J.1 it i, l qjL� IKI77'7' i I R! 1,al17 71 11 F I I P1 1, T 744=- -. I / ;;iAF-M &-hM - 1jj111j;s1 - • M; 713:11 MWE f-1 V tTA LW-.v'f*T-1 77 V ld 177rM I il Ulqlslolt-lrq JAI 7 61 i 71 d All A K. 0 d It Afit 7- 111 Ilk ,At 0 K 0 MIMI M *111 A �41 it a W7 T I FTL-•It Community Caring Center of'Greater Urynton Beach, Inc. .��016/17 " R"S':u-`:4mrrrvi�` p -'R er "`'SS'vr=r v PR�iR4�e)P ig� Ik> _,'R a t a-.,,�i¢ _ ��, --(r, av ya ;, jR,». ; a. vvh\.a» R'J�r ir, u^ :� of &r s �' nnr0 �° �u , au "'R ,art an is fist �,s��,�,� y 0 �,�,� � �t�'�?�� n�„�, » �»�r�,,ft� �� ,��d�� a�� i"n��A M�' Yu�� and n 4 "..tW,,,re€,� "Al-- a k 1� R461, C^r.t nu „�?�� r� *P*Mw;t affid botyft *60k me Am twomfo, bm dAnd Ar ew Ah~ �mqu ,y rl�'n,. z > : 0. �rR�`== 7u Med �u;' ,,.cu - ;, a'' n� r R t� r r:' 'n,�. u » r rl a y,.:r ,r5a,, Fav v,,, Rau itr ,.,,, ,w �5,» R, �pr � „t �ti, Rn� ,� R��r _�,. , .u, a as � s �, ar=+= �, aUx, ��C�**�v ��?sr�� r nA �k �� ask �?�� _��. �e,� m 7�, Pn A �t ,�£> ��+��i��f« ��:Aff M ,» �� {a ,a� ,��a`�� f ��?� ' v�ya��1',,� �� €t�� y��s �`i�~� ��} ��m��indli�"�.",' �,��r�tCr- �S'�i�*��f a�� maw M& a `Wpom: 36% atre Ocvyw t`cw, 10,` h ssi ft" ! 7,7151W r ♦` A e 10 IMF y I s } is extre Cuisine. She is famous for her Shrimp & Grits and her Cajun Gumbo. She has a wonderful business wo experience and is one of the most organized and extrem* competent to program. / The Sailfish is an a learning curve only haWn.9 opened in FebrLwy. Shereft coordinatel Aug- os,�j=21-77- and patient others. f f f 9. Community Caring Center dGreater Boynton Beach, Inc. 2016/17 itti� A��, �•, � i( �( i �?ul,� r � �1' '��' � ��,�,i cl�tlti, f 1'jS t��(j ;li ,(Iti � }II � 1 ,7 I� t! 2 �� i r 7 t��, ��,�( I' Arny has complet* changed her method of operation from a green market vendor selli I .gluten-free • a •� goods to aMobile • ♦ •' • y have purchased • • r; • and joineda few FoodTruck Promotional • e.to enter event. She obtained• al managerOs license,• •her menu to vegan1 andother hot entriWs and participatedTanuary/February. Her income was minimal for i• have • an extension.most of her infortnation fromfl. year, are aM=hingher mobilefood vendor's permit and her fo manager's license and other pertinent information needed regarding her new operation. She is seeking out an employee now that can accompany her and her husband to event as serve as an additional driver. As soon as they do, rii provide documentation on her new employee. f design out of of' truc she honed her skills last year taking our classes an social marketing, • R advantage E I �•consultations,and additional socialmedia i ■• + i • i w v I f e • # 1 •• , about 2 toevents per month. 9 Community- - ofGreater Boynton B- GUMMAs STRUSUM e ". S ¢h��,yu,. " �'"�wq; 5� bfe. �? �`�`�'%M-z +$p s urm4` s;°a�. rm"'X Upk's;y�v�}z �t� )�'v��t';� " �` ` i` iHi-�`.�^h,'Yr 1. 1U' L1 ,� {„� ;1§i� >ew � i .`;ii � �d x��. Yw s �`�&>�'g#Utv'.�{"�Sf9± U` o 'gym\ �z� \ s BakeryNadine Haseidl, a A"ft Beat* rvxWW, owns and operates a traditional German called Grandmas Manufacture Holdings LLC, dba Grandmas Treasumr's Bak”. Starting out in the green markat arena in 2014, she operated out of Fit Food Fresh's commercial kitchen in order to prepare food for green market sales. In 2016, she decided to open a retail outlet in downtown Oelray Beach on S. Federal. The construction was not completed her lame expired in Boca. We were pleased to come to the rescue and allow her to move int• our rear kitchen where she continuesto operateTuesday PM }1A soft opening was .in Decemberr1 i Lwa#WK&A%Wty Lf & located at 54 SE L belray Beach, FL 33444, see invitation attached. employs including of are residents. working Boynton CRA to establish a permartent Gerrnan Bakery in N. Federal Highway in the Ocean Palin Plum a.expects Her corporate docuiments, drivees license, food manager's license, etc am attached. �a� �� 3 4 ch� /� � rand ii %2 �� 0 ri acwring '� �o we �P 44. �i e ". S ¢h��,yu,. " �'"�wq; 5� bfe. �? �`�`�'%M-z +$p s urm4` s;°a�. rm"'X Upk's;y�v�}z �t� )�'v��t';� " �` ` i` iHi-�`.�^h,'Yr 1. 1U' L1 ,� {„� ;1§i� >ew � i .`;ii � �d x��. Yw s �`�&>�'g#Utv'.�{"�Sf9± U` o 'gym\ �z� \ s BakeryNadine Haseidl, a A"ft Beat* rvxWW, owns and operates a traditional German called Grandmas Manufacture Holdings LLC, dba Grandmas Treasumr's Bak”. Starting out in the green markat arena in 2014, she operated out of Fit Food Fresh's commercial kitchen in order to prepare food for green market sales. In 2016, she decided to open a retail outlet in downtown Oelray Beach on S. Federal. The construction was not completed her lame expired in Boca. We were pleased to come to the rescue and allow her to move int• our rear kitchen where she continuesto operateTuesday PM }1A soft opening was .in Decemberr1 i Lwa#WK&A%Wty Lf & located at 54 SE L belray Beach, FL 33444, see invitation attached. employs including of are residents. working Boynton CRA to establish a permartent Gerrnan Bakery in N. Federal Highway in the Ocean Palin Plum a.expects Her corporate docuiments, drivees license, food manager's license, etc am attached. �a� �� 3 4 ch� /� � rand ii %2 �� 0 ri acwring '� �o we Community Qrfng Center dGivater Boynton Beach, Inc. sf,- ns Dena Balka Dew Balka was the front end manner of Frankie's CaN an Ocean Ave. Over the years, she had developed quite a fan base from her excellent customer service and her skills i1 CaN. Little did most people reae that she was such a gwd cook, unless you were in her Christnus Holiday Fan Club and W an invitation to her holiday dinner where she fed 30 to 50 people each year. We started working together to help her get all of the credentials needed to start her own business (state wterers license, food manoWs license, etc. see all-achments) and then invited her friewl Frankie to come over and give her his blessing on her new endeavor. With the support of a wonderful family base, and amazing culinary talent, and such a passion for food, we are 2016 and grossed $813.53. Since the V' of the year, her sales ham increased to newly $3,000 a month. The Cafi has not experienced this type of detemimflon to achieve her goal, since the days of Rosal!VWS famous Haitian food in 2008 to 2011. She serves lunch Wednesday thru Sunday, with Saturday & Sunday offering a delicious brunch menu. She has a staff person, mom and dad help out, and a few other friends offer to wash dishes f rom time to time. rf you hwan't tried her food, ask Mayor Grant, for his recommendation. He!s quite a fan. 111111i IFT M. 1; 1 Caterers License and is workin.9 on her Executive Summary for her business plan. She's i - ' '-n- TMt&r,= I uffilmul, —/V nVan L' IAr. She is 140'r and really soarqng towards success. She was featured in a blog by Adrienne Poolini for Women Entrepreimrs an February 9, 2017, a copy is attached for your review, as well as one of her most recent menus. E MEE= - - BoyntonBeach, 2016111 Financial Statements were droppedbecember 2011 Please f ind attached our P *; L Statement for October 1, 2016 thru March 31, 20FU MarketingF. , The CCC has beenawarded acontractfor $75,000 to provide ajobtraining program by Palm Beach County. A copy of our flyer is all -ached the was distributed at the Royntan Beach Career Expo on March 23. Our program will ham a regWration kickoffin June and aCulinary Job Fair at the end of September. informationFurther be forthcoming .s material is developed. ATTACHMENT III Community Caring Center F1 11 krT9*,=. IT77,7111z7".17 ", 91 77=77--M-OILLIV- ip;ib I M 'Verification by W-2 forms, 1099 forms, or RT -8 Quarterly State of Florida Reemployment Tax Forms 7-35 as of 3/31117 �.;umuiavve ust ot incuDator ciients ana proor or resiaency Deginning witn ciients as or fictober 1, 2016. Verificabon to include: Driver's License, business & Corporate A 47 now clients, 1 returning (A locuments, business licenses. Indicate whether client is ongoing or now and if any Perfact Package) zlient on a previous report has dropped out. After Initial report, verification f:! -i :a :• for now clients only. — ----------- — ------- . ............. i ibiiduata Statistics: NfG,Lriandme's Manufacture, al • List of clients graduating to start/expand their businesses. the reciplent of CRA scmjanom en • Provide copies of leases for businesses. development grants - 36% lEconomic IMR99 - Client verification to include business data as reported to VZetailed on spreadsheet an'L the Included In tax return data 'Internal Revenue Service attached to individual client LXPO KI i�-A iN[1K*- I t- []r,1121111t: t1f: I :711 rITO 0 7 - - M The CCC vvill undertake the program marketing outreach activities to recruit be towards persons who are residents of the City of Boynton Beach or own and operate a small business located In the City of Boynton Beach. Recruitmeryt of participants for the program YAII be from word-of-mouth. direct marketing publicity mailings, email, press releases, attendance at local business events, and referrals by the local Boynton Beach community organization. CCC shall provide cooles of marketinq materials on a Quarterly basis. FA -,fCCC awarded a $75.DOO contract from Palm Beach training program with a r,,=•�_( ZT1 j [I ija i # 1 •1) r CRA BOARD MEETING OF: May 9, 2017 1 Consent Agenda I I Old Business I X1 New Business I I Legal Information Only CRAAB AGENDA ITEM: XIV.B. SUBJECT: Consideration of Request for Event Sponsorship by the GBDC Entrepreneurship Institute SUMMARY: CRA staff received a request for sponsorship from the GBDC Entrepreneurship Institute, a not for profit corporation, in support of the South Florida Regional Business and Finance Conference on Thursday, May 25, 2017 from 4.00pm — 8.00pm at Benvenuto Restaurant and Banquet Facility. As presented in the flyers (see Attachment 1), the event is being held to provide an opportunity for local businesses to meet potential contracting opportunities that may be available with City, County and State agencies. In addition, industry experts will be sharing their knowledge and resources on financing, product development, marketing and leveraging, local media and corporate and government contracts. The City's new Economic Development Director, David Scott will be attending as one of the guest panelist. See Attachment II for the letter of request from GBDC Entrepreneurship Institute outlining the sponsorship funding levels and application. FISCAL IMPACT: To be determined CRA PLAN/PROJECT/PROGRAM: 2016 Boynton Beach Community Redevelopment Plan CRAAB RECOMMENDATION: N/A CRA BOARD MOTION/OPTIONS: To be determined Digitally signed by Michael Simon Michael Sim o n em cn=Michael Simon, o, ou, email=simonm@bbfl.us, c=US Date: 2017.05.05 14:41:24 -04'00' Michael Simon, Interim Executive Director ATTACHMENT 5/1/2017 SOUTH FLORIDA REGIONAL BUSINESS& FINANCE CONFERENCE Tickets, Thu, May 25, 2017 at 4:00 PM I Eventbrite en rite (:k Search for events BROWSE EVENTS HELP SIGN LOG CREATE UP IN EVENT • FLORIDA • BUSINESS & FINANCE CONFERENCE GBDC Entrepreneurship Institute Thursday, May 25, 2017 from 4:00 PM to 8:00 PM (EDT) Boynton Beach, FIL Ticket Information TICKET TYPE SALES END PRICE FEE QUANTITY Early Bird Before May 11, 2017 May 11, 2017 $60.00 $0.00 Register on or Before May 11, 2017 for our early bird discounted price. General Admissions Purchased Not Started $75.00 $0.00 N/A After May 11,2017 General Admissions Purchased After 11 PM May 11,2017 MOWN visA Order Now Share SOUTH FLORIDA REGIONAL BUSINESS & FINANCE CONFERENCE Email Share Tweet, 3t2 Be the first of your friends to like this. Event Details SOUTH FLORIDA REGIONAL BUSINESS & FINANCE CONFERENCE Whether • a STJ-1,-dT-LJP,N0N-PR0E1L, 1-LJVF-0T0'r. ENTREPRENEUR Come meet and get to know some of the major prime contractors in South Florida and talk about potential contracting opportunities that may be available with City, County and State agencies In addition, you will have the opportunity to meet many of the representatives from the media and lending institutions , as well as other community partners. This is a great opportunity to connect, build relationships, become informed and Network, Network, Network. Save This Event When & Where Map data @2017 Google Benvenuto Restaurant & Banquet Facility 1730 North Federal Highway Boynton Beach, FL 33435 Thursday, May 25, 2017 from 4:00 PM to 8:00 PM (EDT) Add to nny c3lend3r Organizer GBDC Entrepreneurship Institute GBDC Entrepreneurship Institute, a nonprofit corporation is looking to establish a Mobile Entrepreneurship & Leadership Training Program (M.E.L.T.) for current and future entrepreneurs in Florida; to address the state's need for hftps:llwww.eventbrite.com/e/south-florida-regional-business-finance-conference-tickets-33125639680 1/3 5/1/2017 SOUTH FLORIDA REGIONAL BUSINESS& FINANCE CONFERENCE Tickets, Thu, May 25, 2017 at 4:00 PM I Eventbrite We have assembled AL.L. the resources you need in one room! You qualified and skilled talent. just need to show up! Join us for this half day conference where M.E.L.T. is a program that industry experts share their knowledge and resources on financing, rapidly places, educates and trains individuals who are product development, taking your idea from concept to retail looking to start or grow a shelves, marketing, leveraging local media and corporate and business and is aimed at government contracts. reducing the high school Funding Panel dropout rate, reduce unemployment and improve Leadership Panel the socio-economic Marketing and Media Panel conditions of the communities in which Inventors & Product Development participants reside. During panel breaks conference participants are able to: Pitch the editor & producers of the local media (2 minute pitch) Record Video Vignettes: Video Advice & or Question (2 minute) Proceeds Will Benefit GBDCE's Future Entrepreneurs & Leaders Stimmer Program Ticket, Vendor Fees and Sponsorship Fees are Tax Dedtictable Have questions about SOUTH FLORIDA REGIONAL BUSINESS & FINANCE CONFERENCE? Cont3ct GBDC Entrepreneurship institute Reduce crime Reduce unemployment Reduce the high school dropout rate Provide technology training for seniors Create jobs for drop outs convicted felons, single parents Provide technical assistance for small business and Entrepreneurs Provide job re-entry skills for drop outs convicted felons, single parents & seniors Contact the Organizer View org3nizer profile f3cebook.con.n/gbdcei @gbdc,,ei 1 upconning event on Eventbrite 1 p3st event on Eventbrite SOUTH FLORIDA REGIONAL BUSINESS & FINANCE CONFERENCE I iflngs lo Do In BoyMon Beacl�, FL Conference Business hftps:llwww.eventbrite.com/e/south-florida-regional-business-finance-conference-tickets-33125639680 2/3 ENTREPRENEURs & ESTABLISHED BUSINESSES ATTACHMENT II i".. ... ...... 1 0 t $SIF Q NI$�QIR$�HItPIP) L,E,TFTE,R Dear Sponsor, On Thursday, May 25, 2017 the GBDC Entrepreneurship Institute will be hosting its Second Annual South Florida Regional Business & Finance Conference. This resource packed conference will gather over 200 community influencers, businesses resources providers and professionals for a day of learning, networking and empowerment. We are proud to introduce an opportunity that allows your organization to help the community, grow your business and extend your organization's reach at the same time. GBDC Entrepreneurship Institute is a nonprofit 501 c (3) organization that strives to create Social Entrepreneurs of all ages through business, cultural, and professional development. We also create a platform where individuals can improve their socio-economic status. In order to accomplish our mission and provide services in our community, we rely on the generosity of dedicated leaders like you for support. We are asking you to consider supporting this year's event as a sponsor. Enclosed you will find a summary of sponsorship options. Your company will receive recognition as a sponsor on the event's collateral materials, press releases, website, and media. If you have any questions, please contact Annette Gray at 561-894-4510. Thank you for considering this request for contribution. Together we can empower communities and change lives! Irr,i Entrepreneurs 1p Institute 1b& GROWING Entrepreneurial LEADERS TINKERS M.E.L.T Mobile Entrepreneurship, Leadership & Training Center Life Skills Training Career Development Training Small Business Technical Assistance Youth Leadership & Entrepreneurship Development GBDC Entrepreneurship Institute is a 50103 organization info@gbdcei.com www.gbdcei.com 3200 S Congress Ave #104 Boynton Beach FL 33426 Phone: 561 -894-4510 Fax:561-894-4501 Entrepreneurship Institute Sponi'p Co.m�m�ijt�mien�t Forr_m� Yes, I would like to support the GBDC Entrepreneurship Institute South Florida Regional Business F± Finance Conference at Benevento Banquet Hall 1730 N Federal Hwy, Boynton Beach Thursday, May 25, 2017 3:30pm- 8:30pm Name: Organization: Address: Phone: Sponsorship Level Li Gold: $1,500 Li Silver: $1,000 Li Bronze: $700 Payment Type Li Cash/Money Order/Check/CC Credit Card # Exp Date City: tate: Zip: Levels: Gold: Vendor Table, 4 event tickets, logo on printed materials, social Media, Et name recognition in Press Release Et at the event Silver: Vendor Table, 3 event tickets logo on printed materials, social Media Bronze: logo on printed materials, 2 event tickets 3digit CV Code Name on Card Billing address V authorize the billing of the card number above for the arnount of Signature: Thank you for your contribution! Remember that ALL contributions may be tax-deductible! Proceeds will benefit the Surnmer Future Entrepreneurs Et Leaders Program Et Business Plan Competition GBDC Entrepreneurship Institute is a 50103 organization info@gbdcei.com www.gbdcei.com 3200 S Congress Ave #104 Boynton Beach FL 33426 Phone: 561 -894-4510 Fax:561-894-4501 4 Entrepreneurs `1 1p institute GROW Entrepreneurial LEADERS,': THINKERS M.E.L.T Mobile Entrepreneurship Leadership & Training Center Life Skills Training Career Development Training Small Business Technical Assistance Youth Leadership & Entrepreneurship Development 'nventors, Professionalsr Small fir, i' Conference Logistics & Schedule Date: Thursday May 25, 2017 Location: Benvenuto Boynton Beach Attendee before /1-1/1 $°S 5/1.2/1.7 Vendor Price: $100- $125 Leadership Panel: Do you as a small business owner have a voice in your local government? Panelists: Local political officials discussing their views on economic development, small businesses & minimum wage Corporate & Government Procurement/Contracting Panel: Panelist: Prime Contractors, Corporations, Government Procurement Agents discussing, the certification process and best practices for leveraging each certification. This panel is design to give all of the perspectives surrounding leveraging certification and building vendor relationships with corporate and government entities. • Corporations will discussed how to get prepared to be a vendor with a corporate entity with a corporate and social responsibility value statement • Real-estate Developers will discuss how to prepare to be a sub -contractor to a prime contractor • The County's Office of Small Business Assistance will discuss the process of becoming certified small/disadvantaged, women owned or minority certified business • Local government entities how to how to leverage government economic development programs become a vendor or respond to RFPs & RFQ • Successful small business owners will discuss best practices for getting prepared and worked successful with all of the above participants Inventors & Product Development: SO you have an invention Idea now what? Panelists: inventors, Engineers, Manufactures, Investors, QVC, Costco buyers discussing how to get your idea made marketed and in stores Marketing and Media Panel Marketing and business development smart business growth. Panelists: local news outlet, magazines and newspapers editors' radio and TV producers discuss how to leverage media and grow Funding Panel: Conventional and non -conventional funding resources. Panelist: representatives for funding products including factoring, grants, business loans, SBA micro loans, Invoice Lending, venture capital and crown funding During panel breaks conference participants are able to Pitch the editor & producers of the local media (2 minute pitch) Record Video Vignettes: Video Advice & or Question (2 minute) Schedule 3:30pm-4:00pm Vendor Set up 4:00pm to 5:00pm Doors open, Registration Networking, visit vendors, pitch the editor, video vignettes 5:00pm Welcome Remarks & Panel 1 5:45pm Panel #2 6:30pm Panel #3 & Break 7:30pm Panel #4 8:00pm Panel # 5 8:30pm Close Vendor Breakdown r CRA BOARD MEETING OF: May 9, 2017 1 Consent Agenda I I Old Business I X I New Business Legal Information Only AGENDA ITEM: XIV.C. SUBJECT: Consideration of Special Events Grant for the Heart of Boynton Community Association, Inc. SUMMARY: The Heart of Boynton Community Association, Inc. is requesting funding in the amount of $5,000 under the CRA's Special Events and Promotional Assistance Application (Attachment 1) for their Prayer in the Park event, which is scheduled for Saturday, July 29, 2017. The purpose of the grant is to "assist existing businesses and organizations in generating positive regional publicity for Downtown Boynton Beach and to help establish and promote worthy community and business goals intended to increase the flow of business and tourism dollars into the downtown area." It should be noted that the event is not scheduled to take place in Downtown Boynton Beach. The Prayer in the Park event will take place at the Carolyn Sims Center, which is within the boundaries of the CRA district, however not in Downtown Boynton Beach. The Heart of Boynton Community Association, Inc. was unable to provide the following required documents- • IRS Determination Letter • Florida Department of State, Division of Corporations Detail by Entity Name Report • Most recent Form 990 and Schedule A or 990EZ Currently the projected budget for this event is $26,780, and the Heart of Boynton Community Association, Inc. is requesting funding for the following eligible items- • Entertainment • Advertising • Event Equipment — tents, tables, chairs, staging • Security • Port -o -lets FISCAL IMPACT: FY 2016 — 2017 Budget, Line item 02-58500-480 r CRA PLAN/PROJECT/PROGRAM: 2016 Boynton Beach Community Redevelopment Plan CRAAB RECOMMENDATION: N/A CRA BOARD MOTION/OPTIONS: Motion to approve the Heart of Boynton Community Association Special Events Grant for their Prayer in the Park event and waive the requirement of the event being located within the downtown area. 2. Motion to deny the Heart of Boynton Community Association Special Event Grant. Mercedes CO p p n Digitally signed by Mercedes Coppin l Date: 2017.05.04 10:15:26 -04'00' Mercedes Coppin, Special Events Coordinator ATTACHMENT 0 BOYNTON Boynton Beach Community Redevelopment Agency Special Events and Promotional Assistance Application T Date Approved Phone a4"?' Contact Person/Title Projected Budget -Ob Amount Requested Estimated Project Start Date g/ Estimated Project End Date Has tWs event received past CRA funding? gym, I - RM Page 5 of 9 710 North Federal Hwy., Boynton Beach, FL 33435 — Phone 561-737-3256 Fax 561-737-3258 www.catchboynton.com Page 6 of 9 710 North Federal Hwy., Boynton Beach, FL 33435 — Phone 561-737-3256 Fax 561-737-3258 www.catchboynton.com ":,. t 1190171= Pastors / churches (28) $2,500.0 3 � Gospel Chorusand # 1 ►$500-00; Food and Water forvolunteers I R • • r.... . , m COndiments/FOOd/suPPlies/(Audience) (500) t } Bounce House, Water Slide, and Trackless 11ain Ir. andAdultGames•. { I Music Disc Jockey q C Photographer (Photo $800.00� Event Planner/Organizer $1500-00 Children's Christian Books 250 - 1,000 } $400-00 Siglls andAdvertisementsl and f .' Awards, Ribbons, Prizes, and Certificates a { w e Chairs and small tables ` l k. ►1 1 r at $ f .:. w, s` tilities and Parks 'Sound System w/ Generator Office/Staff/Supplies/Salaries 1'f } 1 _toiletsa1• i R.If .:►unit)50.001 •$700-001 I TOTU P y �o A 0 '� O A �' az;3, �"t�+ «5 0 x; �M �� o ,�. �o _., O "' � � � z� �• °�� 0 �o o� p„ A n� 0 �: b A A• O �� C 0 �e ;`► y a� O �. O �' �` a I ori Request for Taxpayer Give Form to the (Rev. December 2014) Identification Number and Certification requester. not I Department of the Treasury Send to the RS. Internal Revenue Service 1 Name (as shown on your nur incom/te tax return). Name is required on this line; do not leave this line blank 1Jf„G f t0I t 4. s iameiaisregaraea entity �[jname, it aitterent frroo�my aoove 3 Check appropriate box for federal tax classification; check only one of tKe following seven boxes: 4 Exemptions (codes apply only to ❑ Individual/sole proprietor or C Corporation ElS Corporation ElPartnership ❑ Trust/estate certain entitles, not individuals; see instructions on page 3): single -member LLC Exempt payee code (if any) E] Limited liability company. Enter the tax classification (C=C corporation, S=S corporation, P=partnership) ► Note. For a single -member LLC that is disregarded, do not check LLC; check the appropriate box in the line above for Exemption from FATCA reporting the tax classification of the single -member owner. code (if any) ❑ Other (see instructions) ► (Applies to accounts maintained outside the U.S.) 5 Address (number, street, and apt. or suite no.) _7a hi`� 6 City, st te, and ZIP code B �i�9,j e 7 List account"number(s) here (optional) name and aaaress (optional) Enter your TIN in the appropriate box. The TIN provided must match the name given on line 1 to avoid Social security number backup withholding. For individuals, this is generally your social security number ( page However, for a - m _...� resident alien, sole proprietor, or disregarded entity, see the Part I instructions on page 3. For other entities, it is your employer identification number (EIN). If you do not have a number, see How to get a TIN on page 3. or Note. If the account is in more than one name, see the instructions for line 1 and the chart on page 4 for Employer identification number guidelines on whose number to enter. FST01 - 1'® F T9 s 7 Under penalties of perjury, I certify that: The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me); and 2. 1 am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding; and 3. 1 am a U.S. citizen or other U.S. person (defined below); and 4. The FATCA code(s) entered on this form (if any) indicating that I am exempt from FATCA reporting is correct. Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN. See the instructions on page 3. Sign Signatureo " "� r� Here U.S. person '� ' l t s , Date .0 e Fc/ y Section references are to the Internal Revenue Code unless otherwise noted. Future developments. Information about developments affecting Form W-9 (such as legislation enacted after we release it) is at www.irs.gov/fw9. Purpose of Form An individual or entity (Form W-9 requester) who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) which may be your social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN), to report on an information return the amount paid to you, or other amount reportable on an information return. Examples of information returns include, but are not limited to, the following: • Form 1099 -INT (interest earned or paid) • Form 1099 -DIV (dividends, including those from stocks or mutual funds) • Form 1099-MISC (various types of income, prizes, awards, or gross proceeds) • Form 1099-B (stock or mutual fund sales and certain other transactions by brokers) • Form 1099-5 (proceeds from real estate transactions) • Form 1099-K (merchant card and third party network transactions) • Form 1098 (home mortgage interest), 1098-E (student loan interest), 1098-T (tuition) • Form 1099-C (canceled debt) • Form 1099-A (acquisition or abandonment of secured property) Use Form W-9 only if you are a U.S. person (including a resident alien), to provide your correct TIN. If you do not return Form W-9 to the requester with a TIN, you might be subject to backup withholding. See What is backup withholding? on page 2. By signing the filled -out form, you: 1. Certify that the TIN you are giving is correct (or you are waiting for a number to be issued), 2. Certify that you are not subject to backup withholding, or 3. Claim exemption from backup withholding if you are a U.S. exempt payee. If applicable, you are also certifying that as a U.S. person, your allocable share of any partnership income from a U.S. trade or business is not subject to the withholding tax on foreign partners' share of effectively connected income, and 4. Certify that FATCA codes) entered on this form (if any) indicating that you are exempt from the FATCA reporting, is correct. See What is FATCA reporting? on page 2 for further information. Cat. No. 10231X Form w-9 (Rev. 12-2014) m / 726 NE ist Street Boynton each, FL 33435 ma, t'g, .Weart of Boynton Community 111MLI,Wke e opmenul.= RE: Prayer in the Park Event The Heart of Boynton Community is pleased to present this proposal for your review. We look forward to partnering, with The Heart of - N 79 knrfuz in promoting unity, while enjoying one another's diversity and uniqueness. We would like to join in fellowship with the entire community of the Boynton Beach area in prayer, song, and festivities meeting the needs of the people with compassion and love for all ages. "Prayer in the Park7 is an event that will be the vehicle that will bring diverse communities together promoting the unconditional love of God. Instead of seeing throngs of Idds hanging out on street comers with nothing to do but engage in illicit activity, you might see Idds enjoying fun and games over the sounds of a community gospel choir on a warm Florida afternoon. U $iu Itto I ilk I r;;-§ Cos T kJ, s?- R - 2 u 16, jA 9, Tve lawe nxy t&e8'f*1V, concerning this proposal. Sincerely, WiMe Aikens, 1&ZEU& A-',Ikad• Overview The Heart of Boynton Community takes pride in our significance in promoting unity, while enjoying one another's diversity and uniqueness. We would like to join in fellowship with the entire community of the Boynton Beach area in prayer, song, and festivities meeting the needs of the people with compassion and love for all ages. "Prayer in the Park" is an event that will be the vehicle that will bring diverse communities together promoting the unconditional love of God. Instead of seeing throngs of kids han -t: i out on anon a 1711-1111,11 Wy gospel choir on a warm Florida afternoon. Organization and Mission In 20o6 1he Heart of BW" Cafff-VIIII-ri-kr :M11R1111 - iirl� iiii Triormtre-747eMns. AiliBu is purf5osed in providing services that promote social, physical and economic health. Provides resources by sharing information facilitating training and' education to build life skills necessary to prepare and empower people for leadership in their communities and success in their personal lives. We value projects and programs that increase equality, effectiveness and sustainability. Statement of Need The City of Boynton Beach is confronted with the same problems faced by similar mostly urban, minority neighborhoods; crime, bmaAy I substance abuse." skWi teen M,195�--nh failure. The Heart of Boynton Community is positioning itself to be a vital role in that transformation. The Heart of BW;tonjgW "uni i seeking a Dro-umal tit, rAwomij L3; CITC11L. 1911TV oDieWV-E is to encourage peace and tranquility w1thm our community. Prayer in the Park is a community outreach event that will encourage cultural diversity b us together in unity� El-=- T11 It is believed that regular periods of time specifically devoted to rest, refreshment, prayer, and renewal are crucial to the health and effective leadership. That time set aside for renewal is enormously helpful and practical, and is part of what it means to be faitlM to God. It will foster inspiration and creativity that will make it F!Lo ssible to obtain de Af emotional s1,driWal�w-,W -2-1d intellectual renewal. Ftm games help kids to learn about rules, etiquette, sportsmanship, positive attitudes, fair play, self-esteem, taking responsibility for choices, and management of emotions. Fellowship; being engaged at a community event will foster neighborhood pride which build self-esteem. This event will focus on renewal and balance that can have a healthy effect on the family. We aim to create the desire to deepen one commitment to volunteerism in the community. This event will help to teach compassion. Being more active in the community and growing in Compassion will, almost inevitably, deepen their respect towards each other. The struggle that challenges us to keep people divided and afraid can be the catalyst that brings us together. Congregations will discover that diverse church ministries share common goals and interests. This awareness can foster a better appreciation for the grace and work required to develop and maintain a healthy community. Office, Staff and Supplies To reimburse Secretarial staff members for their timein recording information at meetings, attending extra meetings, some off duty hours to help with certain issues pertaining to HOB meetings, including working on budgets and proposals, calling members and logging m information. Buying supplies for printing and copying. Issumg handouts to the members. ]Inspirational Speakers Local leaders and Pastors will be asked to address participants with inspirational words that will uplift, and encourage a unified diverse community Church Choirs, Soloist, and Groups Musical talents would be promoted from our local church organizations. They will offer information and build relationships. Food and Water ITYMM7777 1 w on Re (tay of the event, and spectators in attendance. Bounce House and Water Slide Familyand Adult Games During the event games such as; playing cards, dominoes, bingo, horseshoes and etc., will be added as a family lun activity. They will also be used to improve communication among adults and the youth. Music Disc Jockey (DJ) The event DJ will provide a variety of music and make necessary announcements during thf, event Photogr-apher PhoW come. Pictures will be taken of the event for families to treasure. Childiren!sBook Books. will be given to each child that attends the event. They will be age appropriate promoting literacy. The books encourage children to read and learn. Signs andAdver-tisements Signs will be purchased and installed throughout the City to promote the Prayer in The Park Event. -111 AM the event. Prizes will be distributed for various family activities that will take play during the event. Magicians and Riloons There will be two (2) magicians to entertain and perform. We would like to prepare to serve jL000 kids. Marketing 1-1 e Cjimmittee will hire a radio station to Drovide service announcements that markets the eve-,-eLr Securilty To secure the event, the City will pay the Boynton Beach Police Department or hire a private company that will provide security during the event Event Plaimer/Decorator WNWIM.0aitium-ri.A-yorl. 4'- f Citystaff City staff will assist with the event layout, setting up of tents, and etc. Sound System w/ Gene3ratoir The sound system will be utilized to power up the equipment needed for bands and etc. ParkMaintenance Park staff will be needed to provide garbage cans, bags and etc., during and before the event. Portalets Portalets are needed to service the number of people in attendance. vet The The stage will serve as the platform for speakers, performers and etc. Event Timeline: Date: To Be Determined Time: To Be Determined Venue: To Be Determined Outcomes and Evaluation and participation. The final evaluation will be based upon the information received per the following attendance: 0 You (0-12)_ Teens (13-18) — Young Adults (14-24) — Adults (25-55) Seniors (55+) 0 % Female, % Male; 0 % African American — % Caucasian— %Hispanic — % Caribbean etc a % of participants from community attendance was captured per surveys and onsite e uations. BYLAWS HEART OF BOYNTON COMMUNITY ASSOCIATION Adopted June 2009 TABLE OF CONTENTS ARTICLE 1 MISSION STATEMENT. ............................... ..................................... ............... 2 ARTICLE2 PURPOSE................................................................................................................ 2 ARTICLE3 POLICIES................................................................................................................. 3 ARTICLE4 BOUNDARIES .................................................. ................................... ,................... 3 ARTICLE5 MEMBERSHIP.......................................................................................................... 4 ARTICLE6 FINANCES...................................................................... .............................. 4 ARTICLE7 MEETINGS............................................................................................................... 5 ARTICLE 8 BOARD OF DIRECTORS ........................ ..... ............6&7 ARTICLE9 COMMITTEES........................................................................................................ 8 ARTICLE 10 CONFLICT OF INTEREST PROCEDURES....................................................... 8 ARTICLE 11 PUBLIC MEETINGSIPUBLIC RECORDS REQUIREMENT ..........................8&9 ARTICLE 12 GRIEVANCE PROCEDURE.......................................................................... 9 ARTICLE 13 AMENDMENTS........................................................................................................ 9 1 ARTICLE 1: MISSION STATEMENT Our Mission is to improve the social, physical, and economic health in the Heart of Boynton, Community by sharing information, facilitating training and education, providing resources, and encouraging communication and participating among neighborhoods, government, educational institutions, businesses, and other participants. ARTICLE 2: PURPOSE Section 1: Name of Organization: The name of this organization shall be the Heart of Boynton Community Association, Inc. (HOBCA) and consist of the following neighborhood associations: Boynton Hills, Boynton Terrace, Martin Luther King, Jr., Poinciana Heights and Ridgewood. Section 2: Purpose of the HOBCA: The purposes for which the HOBCA is organized are: a) To raise the level of community participation by citizens for the purpose of improving and maintaining the quality of life within the City of Boynton Beach Florida. b) To provide a forum through general meetings of the HOBCA and its residents for pursuing a variety of goals beneficial to the HOB community. c) To better the community by working together toward the social, health, physical and economic problems within neighborhoods, and deal with other important neighborhood issues. d) To enhance the livability of the area by establishing and maintaining an open line of communication and liaison between the neighborhood, government agencies and other neighborhoods. e) To provide an open process by which all members of the neighborhood may involve themselves in the affairs of the neighborhood and community. f) To do and perform all activities related to said purpose, to have and enjoy all the powers granted and engage in any lawful activity for which nonprofit corporations may be organized, to make recommendations to the City Council, County Commission, State Legislature and other appropriate agencies concerning legislation or actions which will affect this community. g) In keeping with all of the above, to provide a forum for recreation, crime prevention and community so neighbors can connect with neighbors. 2 1 Section 1: HOBCA will not discriminate against individuals or groups on the basis of race, religion, color, gender, gender identity, sexual orientation, age, disability, national origin, income or political affiliation in any of its policies, recommendations or actions. Section 2: HOBCA, honoring and encouraging diversity within our neighborhood, affirms the rights of all citizens to live and work without fear of intolerance. Section 3: HOBCA is non-partisan, non-commercial, and non-sectarian. The boundaries of the Heart of Boynton Community Association, Inc. will be as follows: from West 1-95 East to Railroad Avenue, North to the C-16 Canal, South to Boynton Beach Boulevard, I .-- - I .. - - --._�. I ' @f':'M'F!•IIlleb C9®91 iQ-941.' �I.._ •'". `. •• •• •,•••,,•' , ' , Y,, I I i.1�r..F�LLL'�s� i ~I1 �7 �' t• is ___., 1 „F—:1.:1�iilll z i 1 [a• tl',r , li: `'•'�" �.,I�`, it lk+a'rr ' i I s ,��jl }-.' .— :! iJ �i1t.i1 1t?' �v til :`3 ,�T•I3:Srj?il.0- ��- �.. � atm. d ft..t.``} _Gf q— '�'�i, I��z 1n�'I7 i' —• —I 7.7 ® -74 IFj �W t77Ta jr r ,ril.TK,� •� I f�T. J Y c t Y p r � r LIL+a�� I..0 ,,A�j w 1 �llil�t!—L -- r- Do �!4 WO.i�hao i .. I ! _TT IjIr__:. VIII � I-- --• •- --' I � -. .,I •—. 11 9MMORROMMU 3 C ;(0 5121 ARTICLE 5: MEMBERSHIPS Section 1: Qualification for Membership Membership in the Association will be open to all residents, business owners, government agencies, business licensees and not-for-profit organizations whose live, work or own real property within the boundaries defined in Article 4. Section 2: Membership Voting Those who are eligible for membership and affix their names to the attendance roster at General or Special Meetings of HOBCA, and are at least 18 years of age, will have voting rights during attendance at any general or special meeting. Voting may be voice, hand or written ballot, as the situation warrants. No individual will have more than one vote. One representative from each government agency, for-profit and not-for-profit organization within HOBCA boundaries will have the same privilege as the residents listed above. Members must be present to cast their individual vote. To encourage participation when sensitive issues are discussed (and to discourage action on information not shared with the Association), voting by proxy is prohibited. ARTICLE 6: FINANCES Section 1: Dues or Membership Fees Charging of dues or membership fees will not be required or solicited for membership in HOBCA —� or voting; however, voluntary contributions and fundraising will be accepted to support HOBCA, such as a Mailing, Newsletter, Special Event, Refreshments. Section 2:. Monies Any monies for HOBCA will be deposited in the name of the Association in such banks or trust companies as the .Board of Directors will designate and will be drawn out only by checks signed by such person or persons authorized by the Board of Directors in pursuit of activities supported by Article 1. Section 3: Remuneration Members of the Board receive no remuneration for services, but are eligible,to be reimbursed for any expenses they have paid carrying out approved HOBCA business. Reimbursed expenditures exceeding $25.00 must be approved by the executive board. ARTICLE 7: MEETINGS Section 1: Notification: Notification for all meetings listed below will be by mailed, newsletter, posted notices, telephone calls, electronic mail lists, or any other appropriate means of communication apt to reach a majority of the members. Notification will require not less than 72 hours notice to the members of the Board that is meeting and to individuals and news media that have requested notice. Section 2: Board of Directors Meetings: The Board will meet in open session as many times as deemed necessary by the president or the Board. HOBCA members are welcome to attend, but only board members may vote. Section 3: General Meetings: A general meeting of the HOBCA held on the third Monday of each month except for December. These meetings are directed by the President or a meeting facilitator appointed by the President. Section 4: Special Meetings. Special meetings of the general membership of the HOBCA may be called by the president or the Board as deemed necessary. Notice of each special meeting must be at least five (5) days before the meeting. Section 5: Emergency Meetings In such cases where the Board or a Committee Chair is required to provide a neighborhood response before the issue can be presented before a regularly scheduled General Membership Meeting, an emergency meeting of the general membership or the Board of Directors may be called. Emergency meetings of the Board may be called by the President or by majority of the Board as deemed necessary. Section 6: Social Gatherings/ Special Events Social Gatherings will be organized by the Association so neighbors can get to know each other and have fun together. Section 7: Agenda The agenda for the general and special meetings of the membership of HOBCA will be prepared by the President, who will post notice of the agenda in a public place in advance of the meeting. Any person or group may add an item to the prepared agenda by submitting the item along with any written materials they wish to present at the meeting in writing to the President at least five (5) days in advance of the meeting. Any member of HOBCA may make a motion to add an item to the general or special agenda at those respective meetings; adoption of that motion will require a second and majority vote. E Section 8: Quorum A quorum for any general or special meeting of the Association will be at least five (5) members in attendance, including three (3) board members. Unless specified otherwise in these Bylaws, decisions of HOBCA will be made by a majority vote of those members present at any meeting. Section 9: Participation Participation at any general, special, board or committee meeting is open to any person and all who wish to be heard. However, only those eligible for membership are entitled to vote. All actions or recommendations of the general or special meetings will be communicated to all affected parties, including minority reports. ARTICLE 8: BOARD OF DIRECTORS Section 1: Number of Board Members The number of Board officers will be determined annually by the Membership of HOBCA at the May Election. There will be at least four (4) and no more than ten (10) standing positions on the Board. The number of HOBCA Board Members will be limited to the number of HOBCA committee chairs. Section 2: Term of Office Officers will hold office for a term of two (2) years or until a successor has been elected or appointed to that office. For continuity and historical perspective, the term for the President will expire in odd numbered years, and the term for the other Board members will expire in even numbered years. An officer may hold a given position for a maximum of two terms in a row. Board members may be removed from office by a majority vote of active members at any general meeting. Section 3: Eligibility for Board Service Eligibility is the same as for membership in HOBCA for both elected and appointed positions. Section 4: Duties of Board Members Board member duties are to manage the affairs of HOBCA in the interim between general meetings and such other business that may be referred to it by the Association. The Board will be accountable to the membership; will present a report of its activities at the regular meetings of the Association; will seek the views of those affected by any proposed policies or reactions before adopting any recommendations on behalf of HOBCA; and will strictly comply with these Bylaws. The Board has the responsibility of acting in the best interests of HOBCA as defined in Article I but is not specifically bound to act according to the desire of the majority of members attending a particular meeting. Section 5: Election of Standing Board Members Elections will be made annually by a vote of the general membership at the May meeting. Th4-' names of all candidates for the Board will be placed in nomination. The election requires a majority vote of the membership present. Elected officers will assume office at the close of tht election meeting. Section 6: Board Vacancies Board vacancies are filled by a majority vote of Board members, subject to ratification by the Association membership at the next General Membership •Meeting. ►Board members ♦appointed will serve the remainder of the unexpired term and until a successor is elected or appointed, Board members who have been absent for three consecutive meetings are deemed to have resigned. Section 7: Board Meetings Board meetings will minimally be concurrent with the general meeting, but should the President convene the Board outside the scheduled general meeting, all actions or recommendations made will be communicated to all affected parties, including minority reports, and to the members of the Association at the next general meeting. Notification of this extraordinary meeting will require not less than 72 hours advance written notice in a public place. Except as provided by the open meeting rules of the Florida Office of Neighborhood Involvement Standards, all board meetings will be open session; however, only Board members will be entitled to vote. In order to permit a public hearing, Board decisions will not be made over the telephone or email. Five (5) members of the Board will constitute a quorum for the transaction of business in any Board meeting. Unless specified otherwise in these Bylaws, decisions of the Board will be made by a majority vote of those board members present at any meeting. A majority of Board members, by signed petition, may call a board, general or special* meeting. Section 8: Duties of Board Officers: a) President: The President will prepare the agenda and preside at all meetings of the Board; will be the principal representative and spokesperson for HOBCA except as the President and Board otherwise provides;'will be a member officious of all committees; will perform such other duties as may be prescribed in these Bylaws or assigned by HOBCA or the Board; will appoint members of committees not elected, with a majority approval of the Board, except for members of the Grievance Committee (should one be formed). b) Vice President: The first alternate will assist the President in all.delegated duties; in the absence of the President will function as chair. c) Secretary: The secretary will keep Minutes and written records of attendance and the results of any votes taken, a summary of recommendations and any dissenting views. The secretary will be responsible for all correspondence as assigned by HOBCA; will make records available for review for any proper purpose at any reasonable time. IN d) Treasurer: The treasurer will be responsible for all money and will give an accounting at each general meeting; will receive safe keep and disburse HOBCA funds for authorized purposes. ARTICLE 9: COMMITTEES Section 1: The Board of Directors will both establish and dissolve standing and HOBCA committees as it deems necessary and appropriate. Committees not meeting at least once a quarter may be declared inactive and either is dissolved or new members and chair appointed. ARTICLE 10 CONFLICT OF INTEREST PROCEDURES Section 1: Definition A conflict of interest exists for a member or Board Member whenever the member or board member holds a .personal financial interest which will be affected by the action or inaction by HOBCA on a proposal before the membership or Board. A personal financial interest will include a financial interest held by the member or board member and/or by members of their immediate family. A personal financial interest includes an ownership interest above 5% of a business or other enterprise which will be affected by the decision of HOBCA. Examples of personal financial interest would include employment through the HOBCA, ownership of property the use or control of which is being considered by HOBCA, plans to purchase property the use or control of which is under discussion by HOBCA, etc. Section 2: Declaring the Conflict of Interest Whenever a member or board member determines the existence of a conflict of interest relating to an item under discussion, the body (membership or board) hearing the proposal will be informed that a conflict of interest exists by the person with the conflict. Section 3: Abstention from Voting Members or board members will not vote on matters in which they have a conflict of interest but may continue to participate in discussions. ARTICLE 11: PUBLIC MEETINGS/PUBLIC RECORDS REQUIREMENT HOBCA will abide by all the requirements relative to public meetings and public records as outlined and will abide by all Florida statutes relative to public meetings and public records. Official action(s) taken by HOBCA and any of its committees will be on record or part of the Minutes of each meeting. The minutes shall include a record of attendance and the results of any N. vote(s) taken, A summary of dissenting views shoula also be included in the minutes. Official records with be kept on file. R ■-Mlipm lilt lit Section 2: Processing the Grievance: Within seven (7) days after the receipt of the written grievance, the President will establish a grievance committee of three to include: one person appointed by the Board of Directors, one person appointed by the petitioner and one person from the Neighborhood District. The committee will investigate the grievance. The committee will hold a public hearing and give the petitioner and others wishing to present relevant information a chance to be heard. The committee will then forward its written recommendations to the Boar,01. Section 3: G.rie.vance Resolution: Within thirty (30) calendar days from the receipt of the grievance,. HOBCA shall render a final decision on the grievance and notify the petitioner of the deon of the Board. Section 4: Appeals Process: Upon unsatisfactory resolution of the grievance with a Neighborhood Association, the petitioner may appeal d' to the Office of Neighborhood Involvement within fourteen (14) days. The use of mediation through Resolutions is encouraged to resolve grievance issues. Notic ' e of a proposal to amend the bylaws must be placed on the '!-aa !! # to the rules set out for notice of General and Special Meetings above. Adoption of any amendments to the bylaws requires -a majority vote of the members present at the meetirig. Le CRA BOARD MEETING OF: May 9, 2017 I Consent Agenda I I Old Business I X I New Business Legal Information Only CRAAB AGENDA ITEM: XIV.D. SUBJECT: Consideration of an Interlocal Agreement (ILA) with the City of Boynton Beach for the partial funding of the Director of Economic Development and Strategy SUMMARY: In recent Strategic Planning activities, the CRA Board and City Commission have prioritized a program initiative focused on community wealth building, citizen engagement and the creation of a more economically equitable workforce. The first step in the implementation of this initiative is the hiring of David Scott, as the Director of Economic Development and Strategy. The CRA/City's Economic Development and Strategy Program ("Program") aims to promote a healthy and vibrant community through locally -based, regionally -driven economic development that will improve the quality of life for area residents and to increase private investment within the Community Redevelopment Area by providing the foundation by which the public sector, working in conjunction with other economic partners, creates the environment for regional economic prosperity. As the efforts put forth under the Program will demonstrate further and continued advancement of the goals and mission of the CRA Redevelopment Plan, staff and legal counsel support the use of CRA funds to provide a partial funding of the position. The first term of the ILA will terminate on September 30, 2017 and provides funding for the position not to exceed $23,795 or twenty-five percent (25%) of the salary/benefits cost. The CRA Board and City Commission may mutually agree to extend the agreement for a period of one year upon the agreement of both parties (see Attachment 1). FISCAL IMPACT: $23,795 General Fund Line Item 01-51440-100 CRA PLAN/PROJECT/PROGRAM: 2016 Boynton Beach Community Redevelopment Plan CRAAB RECOMMENDATION: N/A CRA BOARD MOTION/OPTIONS: 1) Motion to approve the ILA for the partial funding of the Director of Economic Development and Strategy 2) Motion to not to approve the ILA for the partial funding of the Director of Economic Development and Strategy 3) The CRA Board may consider requesting additional terms and conditions to the ILA a motion to approve. Digitally signed by Michael Simon Michael Simon em cn=Michael Simon, o, ou, email=simonm@bbfl.us, c=US Date: 2017.05.05 14:31:46 -04'00' Michael Simon, Interim Executive Director ATTACHMENT INTERLOCAL AGREEMENT BETWEEN THE CITY OF BOYNTON BEACH AND THE BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY FOR THE FUNDING OF THE ECONOMIC DEVELOPMENT AND STRATEGY DIRECTOR THIS AGREEMENT is made this day of , 2017 by and between the CITY OF BOYNTON BEACH, a Florida Municipal Corporation, ("CITY"), and the BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, ("CRA") (individually and collectively, the "Parry" or "Parties") WITNESSETH: WHEREAS, the CRA's Economic Development and Strategy Program ("Program") aims to promote a healthy and vibrant community through locally -based, regionally -driven economic development that will improve the quality of life for area residents and to increase private investment within the Community Redevelopment Area ("Redevelopment Area") by providing the foundation by which the public sector, working in conjunction with other economic partners, creates the environment for regional economic prosperity. The Program serves as the lead integrator of the CRA/CITY economic development initiatives, facilitates interagency planning, collaboration and coordination among the various partners, and oversees the development and integration of the CRA/CITY strategic plan. WHEREAS, the Program ensures customers receive a high level of service, customer accessibility, timely communications, effective outreach, education and problem resolution with the goal of strengthening the relationship with residents and business community and ensuring the highest level of customer satisfaction with respect to the provisions of the CRA/City and ordinances and policies, including those specific to the Redevelopment Area; and 00742721-1 WHEREAS, the goal of the CRA's Community Redevelopment Plan ("Plan") is to provide a clear and consistent vision for the Redevelopment Area and therefore predictability for new development and investment in the area; and WHEREAS, the Program has jurisdiction within the Redevelopment Area; and WHEREAS, the City desires to provide the CRA with the management for the Program under the terms of the Program shown in Exhibit "A;" and WHEREAS, the CRA Board finds that this Agreement, and the use of the CRA's funds to implement a portion of the Program that specifically serves the Redevelopment Area is consistent with the Community Redevelopment Plan and Florida Statutes; and WHEREAS, the intended aim of the CRA toward the elimination of slum and blighted conditions, to promote a healthy and vibrant community through locally -based, regionally -driven economic development that will improve the quality of life for area residents, increase private investment within the Community Redevelopment Area ("Redevelopment Area"), and provide the foundation by which the public sector, working in conjunction with other economic partners creates the environment for regional economic prosperity, the CRA/City find that this funding agreement serves a municipal and public purpose, and is in the best interest of the health, safety, and welfare of the residents and business owners of the City, including those within the Redevelopment Area; NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, the Parties hereby agree as follows: 1. Recitals. The recitals set forth above are hereby incorporated herein. 2. Obligations of the CRA. The CRA shall provide funding to the City in the maximum amount of $23,795, to be used for reimbursement of the costs associated 00742721-1 with the portion of the Program associated with and specifically dedicated to the Redevelopment Area, as further described in Exhibit `B." Upon receipt of a complete, written request from the City, the CRA shall make payments to the City on a quarterly basis for the reimbursement of direct expenses related to the Program related activities of the Coordinator. In order to be deemed complete, the written request from the City for payment must include all payroll and program documentation, a copy of the Coordinator's work schedule, and copies of receipts indicating the amount and the purpose for the payment for which the City is seeking reimbursement. The CRA shall remit payment to the City within thirty (30) days of receipt of a complete request from the City. 3. Obligations of the City. On a quarterly basis, the City shall provide a written report to the CRA documenting the activities of the Program as it was implemented within the Redevelopment Area for that quarter. The report shall detail the activities of the Coordinator for that quarter and all other information as described in Exhibit "A" will be contained the quarterly report. 4. The City shall indemnify, save, and hold harmless the CRA, its agents, and its employees from any liability, claim, demand, suit, loss, cost, expense or damage which may be asserted, claimed, or recovered against or from the CRA, its agents, or its employees, by reason of any property damages or personal injury, including death, sustained by any person whomsoever, which damage is incidental to, occurs as a result of, arises out of, or is otherwise related to the negligent or wrongful conduct or the faulty equipment (including equipment installation and removal) of the Coordinator or the Program. Nothing in this Agreement shall be deemed to affect the rights, privileges, and sovereign immunities of the CRA as set forth in Section 768.28, Florida Statutes. This 00742721-1 paragraph shall not be construed to require the City to indemnify the CRA for its own negligence, or intentional acts of the CRA, its agents or employees. Each parry assumes the risk of personal injury and property damage attributable to the acts or omissions of that party and its officers, employees and agents. 5. Term of the Agreement. This Agreement shall become valid and commence upon execution by the last Parry to this Agreement, and shall terminate on September 30, 2017 ("Termination Date"). The CRA shall not be required to reimburse the City for any requests submitted after the Termination Date. The term of the Agreement may be extended one time and may only be extended upon approval by the CRA Board and upon the appropriation of CRA funds for intended purposes of this Agreement in the subsequent fiscal year's budget. Such extension is only effective upon the execution of a written amendment signed by both Parties. Nothing in this paragraph shall be construed so as to affect a Parry's right to terminate this Agreement in accordance with other provisions in this Agreement. 6. Records. The City and the CRA each shall maintain their own records and documents associated with this Agreement in accordance with the requirements set forth in Chapter 119, Florida Statutes. All such records shall be adequate to justify all charges, expenses, and costs incurred in accordance with generally accepted accounting principles. Each Party shall have access to the other Party's books, records and documents as required in this Agreement for the purpose of inspection or audit during normal business hours during the term of this Agreement and at least 1 year after the termination of the Agreement. 7. Filing. The City shall file this Interlocal Agreement pursuant to the requirements of Section 163.01(11) of the Florida Statutes 00742721-1 8. Default. If either Parry defaults by failing to perform or observe any of the material terms and conditions of this Agreement for a period of ten (10) calendar days after receipt of written notice of such default from the other Parry, the Party giving notice of default may terminate this Agreement through written notice to the other Party, and may be entitled, but is not required, to seek specific performance of this Agreement on an expedited basis, as the performance of the material terms and conditions contained herein relate to the health, safety, and welfare of the residents of the City and Redevelopment Area. . Failure of any Party to exercise its right in the event of any default by the other Parry shall not constitute a waiver of such rights. No Parry shall be deemed to have waived any rights related to the other Party's failure to perform unless such waiver is in writing and signed by both Parties. Such waiver shall be limited to the terms specifically contained therein. This section shall be without prejudice to the rights of any Party to seek a legal remedy for any breach of the other Parry as may be available to it in law or equity. 9. No Third Party Beneficiaries. Nothing in this Agreement shall be deemed to create any rights in any third parties that are not signatories to this Agreement. 10. Compliance with Laws. The City and the CRA shall comply with all statutes, laws, ordinances, rules, regulations and lawful orders of the United States of America, State of Florida and of any other public authority which may be applicable. 11. Entire Agreement. This Agreement represents the entire and sole agreement and understanding between the Parties concerning the subject matter expressed herein. No terms herein may be altered, except in writing and then only if signed by all the Parties hereto. All prior and contemporaneous agreements, understandings, communications, conditions or representations, of any kind or nature, 00742721-1 oral or written, concerning the subject matter expressed herein, are merged into this Agreement and the terms of this Agreement supersede all such other agreements. No extraneous information may be used to alter the terms of this Agreement. 12. Severability. If any part of this Agreement is found invalid or unenforceable by any court, such invalidity or unenforceability shall not affect the other parts of the Agreement if the rights and obligations of the parties contained herein are not materially prejudiced and if the intentions of the parties can continue to be achieved. To that end, this Agreement is declared severable.. 13. Governing Law and Venue. The validity, construction and effect of this Agreement shall be governed by the laws of the State of Florida. Any and all legal actions necessary to enforce the terms of this Agreement shall be conducted in the Fifteenth Judicial Circuit in and for Palm Beach County, Florida, or, if in federal court, in the United States District Court for the Southern District of Florida, to which the Parties expressly agree and submit. 14. No Discrimination. Parties shall not discriminate against any person on the basis of race, color, religion, ancestry, national origin, age, sex, marital status, sexual orientation or disability for any reason in its hiring or contracting practices associated with this Agreement. 15. Notice. Whenever either Party desires to give notice to the other, such notice must be in writing and sent by United States mail, return receipt requested, courier, evidenced by a delivery receipt, or by overnight express delivery service, evidenced by a delivery receipt, addressed to the Party for whom it is intended at the place last specified; and the place for giving of notice shall remain until it shall have been changed by written 00742721-1 notice in compliance with the provisions of this paragraph. For the present, the Parties designate the following as the respective places for giving of notice. CITY: Lori LaVerriere, City Manager City of Boynton Beach 100 E. Boynton Beach Boulevard Boynton Beach, FL 33435 CRA: Michael Simon, Interim Executive Director Boynton Beach CRA 710 N. Federal Highway Boynton Beach, Florida 33435 Copies To: James A. Cherof Goren, Cherof, Doody & Ezrol, P.A. 3099 East Commercial Boulevard, Suite 200 Fort Lauderdale, Florida 33308 Tara Duhy, Esquire Lewis, Longman & Walker, P.A. 515 North Flagler Drive, Suite 1500 West Palm Beach, Florida 33401 16. No Transfer. The Parties shall not, in whole or in part, subcontract, assign, or otherwise transfer this Agreement or any rights, interests, or obligations hereunder to any individual, group, agency, government, non-profit or for-profit corporation, or other entity without first obtaining the written consent of the other Party. 17. Interpretation. This Agreement shall not be construed more strictly against one Party than against the other merely by virtue of the fact that it may have been prepared by counsel for one of the Parties. 00742721-1 IN WITNESS WHEREOF, the City and the CRA hereto have executed this Agreement as of the date set forth above. ATTEST: Judith Pyle, City Clerk Approved as to Form: Office of the City Attorney Approved as to Form: Office of the CRA Attorney 00742721-1 CITY OF BOYNTON BEACH, a Florida municipal corporation Steven B. Grant, Mayor (SEAL) BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY By: Steven B. Grant, Chair Exhibit "A" Boynton Beach Community Redevelopment Agency Economic Development and Strategy The Boynton Beach Community Redevelopment Agency Economic Development and Strategy aims to promote a healthy and vibrant community through locally -based, regionally -driven economic development. ECONOMIC DEVELOPMENT AND STRATEGY Ensures that resources are invested and aligned in support of goals and objectives Communil designed to create pathways to build, retain and transfer economic growth to the local community ead Integrator of the :Ity's economic evelopment Initiatives, hrough the evelopment and mplementation of the oordinated strategic Ian by facilitating nteragency planning, ollaboration and oordination among the arious public, private, nd nonprofit agencies nd partners. Links the community with Administers the City's resources that will assist in small/minority business enterprise galvanizing the combined program, focused on capacity efforts of residents through building and economic prosperity Neighborhood Economic Development strategies Economic development serves as a means to engage community leaders, leverage the involvement of the private sector, and establish a strategic blueprint for regional collaboration. Economic Development and Strategy provides the foundation by which the public sector, working in conjunction with other economic partners creates the environment for regional economic prosperity, and serves as the lead integrator of the CRA/City's economic development initiatives, facilitates interagency planning, collaboration and coordination among the various CRA/City agencies and partners, and oversees the integration and implementation of the CRA/City's strategic plan. Mans 2016 Boynton Beach Community Redevelopment Man Boynton Beach Strategic Man Citywide Community Redevelopment Plan 2013 Development Atlas f„ Incentives and Programs better JlLoutcomes Business Strategy Partners/Resources City of Boynton Beach Boynton Beach Faith Based Community Development Corporation The Business Strategy Team develops and Boynton Beach Community Redevelopment Agency Career turrx "i Palm Beaub Copnfi✓ implements the strategy -driven plan, focused on Palm B—h Con.ty Busmoss Development Board . capacity building and economic prosperity and Enterprise Honda Ezpooting Assistance �' resiliency. The Team establishes and maintains a The fireater Bourton Beach Chamber of Commerce U.S. Ex ort Assistance Centers of Florida robust economic ecosystem by helping to build U.S. Small Business Administration Palm. Beach Umno, Edw;dion regional and local capacity that contributes to community success. The Business Strategy Team provides the framework for individuals, organizations, 1 local governments, institutions. of learning, and private industry to align the capacity building efforts that best serve to ensure that available resources are invested and aligned in support of goals and objectives designed to create pathways to build, retain and transfer economic growth to the local community. The Business Strategy Team integrates and leverages other planning efforts, including the use of other available funds, private sector resources, and state support that advance the CRA/City's goals and objectives. Small Local and Minority Business Development The Small Local and Minority Business Development Team administers the City's small/minority business enterprise program, focused on capacity building and economic prosperity targeting local small and minority businesses that serves to create a legacy of sustainable community wealth that benefits all of its citizens. The Team establishes the business support structure that integrates and leverages resources that advance the CRA/City's goals and objectives. This�� requires a coordinated approach to business p�°a�ti� q pp �1,1gov"eramer � o� °�tllpubitq��µ development that establishes a private/public 4 i'k e PRI N110, with the community, businesses, the CRA, the City and other public and private sector partners. The Team ensures that CRA/City resources are invested and aligned in support of goals and objectives designed to produce transformational community economic prosperity. Access to Access to Procurement Resources Information Processes Na Keep Bonding Prime Contractor Bundled Projects IT Local Experience s -_ Ut Community Outreach (Building Wealth in the Community) Building a sustainable economic development strategy requires that the CRA and City empower the residents of Boynton Beach as active participants in the ongoing economic development of their neighborhoods; creating a legacy of sustainable community wealth that benefits all of its citizens. The Community Outreach team will aim to ensure that residents benefit from any development or redevelopment initiative ' Community '" �' I and that publicly subsidized projects effectively address:$, �w t � � � �alis community needs by creating job and job training ` opportunities, workforce development, fair access and smanacal Community & Minority support for local small and minority-owned businesses to Outreach Business ` pursue related contracts, environmental justice, minimized Development local business displacement and adequate workforce housing. This in turn will enable residents to purchase and retain housing and thus become stronger stakeholders in the community. Community organization and engagement will be crucial. We will seek to link the community with resources that will assist in galvanizing the combined efforts of residents, community organizations, businesses, and faith -based, financial, and educational institutions; focused on providing technical assistance and financial support for community revitalization, and incubator assistance for small business development and entrepreneurs. K BUSINESS STRATEGY To develop and implement a coordinated framework that serves as a means to engage community leaders, leverage the involvement of the private sector, and establish a strategic blueprint for regional collaboration that serves as the foundation by which the public sector, working in conjunction with other economic partners creates the environment for regional economic prosperity. The Team serves as the lead integrator of the CRA/City's economic development initiatives, facilitates interagency planning, collaboration and coordination among the various City agencies and partners, and oversees the development and implementation of the CRA/City's strategic plan. The Team works with individuals, organizations, local governments, institutions of learning, and private industry to align the capacity building efforts that best serve to ensure that available resources are invested and aligned in support of goals and objectives designed to create pathways to build, retain and transfer economic growth to the local community. BUSINESS STRATEGY OBJECTIVE To develop and implement the citywide strategic plan and management structure that focuses on effectively creating pathways to build, retain and transfer economic growth to the local community; thereby, creating true economic empowerment and emerging growth opportunities that generates jobs, leads to a reduced unemployment rate, increased home ownership, increased local economic activity in other small business, decreased crime, decreased reliance on government services, and increased tax revenues. SMALL LOCAL AND MINORITY BUSINESS DEVELOPMENT STRATEGY To develop and implement a coordinated framework to ensure that all businesses be afforded an opportunity for full participation in the CRA/City's system for the procurement of goods, services or construction projects, and to establish a recordkeeping system to monitor participation. Through a comprehensive approach to local small and minority business development, the City will provide community anchors, stimulate private investment, enhance economic development, and elevate the quality of life and safety for the City's residents. The Team administers Small Local and Minority Business Enhancement Program focused on leveraging the City's investments in a way that will create pathways to build, retain and transfer economic growth to the local community, thereby creating a legacy of sustainable community wealth that benefits all of its citizens. SMALL LOCAL AND MINORITY BUSINESS DEVELOPMENT OBJECTIVE To develop and implement a comprehensive small local and minority business enhancement program that seeks to address the CRA Board and City Commission vision of increased wealth and prosperity for its community as a whole, incorporating the goals and objectives of the strategic plan. COMMUNITY OUTREACH (BUILDING WEALTH) STRATEGY To develop and implement a coordinated framework that link the community with resources that will assist in galvanizing the combined efforts of residents through Neighborhood Economic Development strategies that engage, community organizations, businesses, and faith -based, financial, and educational institutions; focused on providing technical assistance and financial support for community revitalization, and incubator assistance for small business development and entrepreneurs. COMMUNITY OUTREACH (BUILDING WEALTH IN THE COMMUNITY) OBJECTIVE To develop and implement a comprehensive and sustainable economic development strategy that empowers the residents of Boynton Beach as active participants in the ongoing economic development of their neighborhoods; creating a legacy of sustainable community wealth that benefits all of its citizens. all "Exhibit B" Annual Total $47,589.25 ILA Amount for FY 16-17-6 months (Apr -Sept) $ 237795 NOTE: All amounts provided by City Finance Department for FY 2016-2017 CRA BOARD MEETING OF: May 9, 2017 (Tabled 4111117) 1 Consent Agenda I I Old Business I X I New Business I I Legal I I Information Only CRAAB AGENDA ITEM: XIV.E. SUBJECT: Consideration of the Purchase and Sales Agreement with Larry Finkelstein for the Property located at 340 NE 10th Avenue (MLK, Jr. Blvd) SUMMARY. CRA staff was contacted by the owner of the property located at 340 NE 10th Avenue (MLK, Jr. Blvd.) to discuss their desire to sell the property. The property is within the Heart of Boynton District at the eastern end of Martin Luther King, Jr. Boulevard. It is currently vacant land lying within the General Commercial (GC) Land Use category (see Attachment 1). The owner of the property has agreed to sell the parcel to the CRA for a purchase price of $50,000. An appraisal was done on March 27, 2017 with an appraised value of $46,500 (see Attachment 11). Recent appraisals and vacant property purchases made by the CRA within the Model Block Project area over the past 30-60 days, supports the sale price being offered by the owner. As indicated on the map (see Attachment III), this property is in the immediate proximity of three (3) vacant parcels of land owned by the City and the CRA making the acquisition of this parcel advantageous for the CRA and future redevelopment opportunities. The Purchase and Sale Agreement is provided as Attachment IV. Just prior to the April 11, 2017 CRA Board Meeting, the Seller provided CRA staff with a Lease the Seller has on the premises with the Haitian Pentecostal Church, Inc. for additional Church parking. The Lease is attached as Attachment V. The Lease is valid thru December 31, 2017. Currently the Church pays $60.00 per month and must maintain the lot. The Church must also name the owner of the property as an additional insured and provide proof of insurance. If the CRA purchases the property it will require the Church to name the CRA as an additional insured. FISCAL IMPACT. $50,000 plus approx. $2,500 for closing cost allowance from approved FY 2016-2017 Budget, Line Item 02-58200-401 CRA PLAN, PROGRAM OR PROJECT: 2016 Boynton Beach Redevelopment Plan CRAAB RECOMMENDATION: Recommends approving purchase of 340 NE 10th Ave CRA BOARD RECOMMENDATIONS/OPTIONS: 1. Approve the Sale and Purchase contract with Larann Land Investments, LLC for the property located at 340 NE 10th Avenue in the amount of $50,000 plus $2,500 for closing costs 2. Do not approve the Sale and Purchase contract with Larann Land Investments, LLC for the property located at 340 NE 10th Avenue. Digitally signed by Michael Simon Michael Sim o n em cn=Michael Simon, o, ou, email=simonm@bbfl.us, c=US Date: 2017.05.09 15:17:01 -04'00' Michael Simon, Interim Executive Director ATTACHMENT ` � \ \an � \1 d a District Introduction Planning Challenges Planning Considerations The Vision Recommendations ƒ( Intr'oduc'tion The Heart of Boynton District is a 380 -acre neighborhood developed predominantly with single-family homes. The neighborhood has several parks, two public schools and numerous churches. Unfortunately, it has been the victim of disinvestment over the last 50 years. The two Census blocks of Tract 61 which encompasses this District have the median household income of $20,848, the lowest in the City. To counter the decline of the neighborhood, in 2001 the CRA and City adopted the Heart of Boynton Community Redevelopment Plan. The Plan was updated in 2014 to reflect the achievements of the original plan and add new projects to reflect the current market conditions. A number of recommendations of the original CRA Plan have been implemented, including: • The demolition of the Cherry Hill public housing project • The redevelopment of the Boynton Terrace site – Ocean Breeze West – into 21 single- family homes Redevelopment of Wilson Park and into Carolyn Sims Community Center • Expansion of the Palmetto Greens Park • Redevelopment of Sara Sims Park – Master Plan created, property acquired • Streetscape Improvements on Seacrest Boulevard • Redevelopment of Martin Luther King, Jr. Boulevard – Property acquired and Family Dollar developed • Development of new housing – 60 new single family homes developed In partnership with nonprofits, the City and CRA. The Heart of Boynton District is bounded by the C. Stanley Weaver (C -Canal) canal to the north, 1-95 to the west, N.E. 3rd Avenue to the south and the FEC rail line to the east. The area is within walking distance of the Cultural and Downtown Districts. A major arterial road—Seacrest Boulevard—runs through the neighborhood north/south. Martin Luther King, Jr. Boulevard, once lined with locally -owned businesses, runs east/west. There are two public elementary schools in the neighborhood, Poinciana and Galaxy. Both schools are STEM schools (Science, Technology, Engineering and Math). There are a number of parks and special use areas within the neighborhood, such as, Carolyn Sims Community Center, Galaxy Park and Scrub and Sara Sims Park. 10 Figure 57: Heart of Boynton District Location Map PlanniUq Challenges The Heart of Boynton area suffers from an aging and poorly maintained housing stock. The CRA and City, in partnership with local non -profits, continue to develop single-family homes, but there is a need for quality affordable multi -family rental housing. The problem is that—given low median household incomes—it cost more to build even modest apartments than many of the families can afford. This gap will has to be filled through some form of a subsidy. Another major deterrent to private investment is the visible blight and crime. There are still a number of small convenience stores that allow loitering and illegal activities for all to see, discouraging people to buy homes or invest in businesses within the area. The District is comprised of small parcels platted in the 1920's – 1930's, during Florida's land boom. The parcels are owned by many different people making assembly of a developable site very difficult and expensive. Moreover, many owners have an unrealistic sense of the value of their property. Over the years, the neighborhood has lost most of their retailers and service providers. There is no full service grocery store and only one take- out restaurant. The majority of commercial use 1 is represented by convenience stores. A new Family Dollar store at the corner of Martin Luther King, Jr. Boulevard and Seacrest Boulevard has been a welcome addition, but there is a need for more retail services. The neighborhood is bifurcated by a four - lane Seacrest Boulevard, which has only one signalized pedestrian crossing even though there are two elementary schools in the neighborhood. The width of the road and drive aisles encourage speeding through the neighborhood; clearly, the road is not presently designed at a neighborhood scale. Both Seacrest Boulevard and Martin Luther King, Jr. Boulevard have older, ill -maintained power poles with overhead utilities, causing a "visual blight." Figure 58: Example of District Planning Challenges Is P11 ga r r it ConAs d ge Er ga t ons Several factors were considered in determining the land use designations for the Heart of Boynton District. A future commuter rail station for the planned Tri - Rail Coastal Link service, which will serve the South Florida metropolitan region, is planned for downtown at N.E. 4th between Ocean Avenue and Boynton Beach Boulevard. To improve land development patterns in advance of station development, the City adopted a Downtown Transit Oriented Development District (DTOD), covering a %2 mile radius around the station's location, including a portion of the Heart of Boynton. The DTOD district regulations support increased intensity of development through a 25% density bonus. A second consideration is the Transportation Concurrency Exception Area (TCEA) which, in addition to the residential exception area applicable east of 1-95, exempts all development from the Palm Beach County traffic concurrency requirements thus allowing denser development. The Plan recommends increasing density within the area where the TCEA and TOD designations overlap. However, because this District is a low - scale neighborhood, no increase in height over 45' is recommended. Historic District. There are a significant number of historic cottages located along both sides of NE 3rd Avenue and the south side of NE 4th Avenue between N. Seacrest Boulevard and NE 1st Street. In order to protect these cottages while allowing commercial redevelopment of the south side of NE 3rd Avenue, the Plan recommends that: • The historic cottages from the south side of NE 3rd Avenue be relocated to the vacant lots on the north side of NE 3rd Avenue. • On completion of the relocations, a historic district, tentatively called Shepard Funk Addition Historic Cottage District, be created within the block enclosed by N. Seacrest Boulevard, NE 1st Street, NE 3rd Avenue, and NE 4th Avenue. The Heart of Boynton area will become a model neighborhood, with its unique character and history preserved. The vision includes enriching the original vernacular architecture of the neighborhood, investing in housing and commercial uses, and connecting both through the pedestrian and vehicular networks. Recommendations: Strentsrane Streetscape enhancements are recommended for the Seacrest Blvd and Martin Luther King Jr. Blvd. The space for these enhancements may be obtained through either right-of-way dedications or public easements. The enhancements should include: • Implement a Complete Streets program for Seacrest Boulevard and ML K Jr. Boulevard to accommodate bike lanes and bike racks, widening of sidewalks, decorative street lights, street furniture, and on -street parking. • Marking of major intersections with materials such as pavers, paint, etc. • Enhanced median landscaping • Bus shelters (will be required as part of new construction) • Additional signalized pedestrian crossings (including mid -block) along Seacrest BoulevardAddition of canopy street trees • Creation of a Pedestrian Zone adjacent to the right-of-ways that is inviting, safe and includes: • Minimum 8' wide clear sidewalk • Decorative light poles at both the vehicular and pedestrian scales • Require installation of canopy trees that provide immediate shading at time of construction • Undergrounding of overhead utilities • Creation of a greenway to connect the greenway proposed along NW 1 stAvenue, Sara Sims Park, and Wilson Park per the Connectivity Plan • Creation of an eco -trail to connect the existing scrub and linear parks per the Connectivity Plan 110 Figure 60: Seacrest Blvd Streetscape Area Figure 62: MLK JR. Blvd. Street Section Recommendations: Land Use The existing land use designations within the Heart of Boynton District are: • Low Density Residential — 5 units per acre (all of this land use designation is concentrated on the west side of Seacrest Boulevard. • Medium Density Residential — 10 units per acre (this land use designation is concentrated on the east side of Seacrest Boulevard) • High Density Residential — 11 units per acre (currently over the Ocean Breeze West development and along W. Seacrest from N.W. 8th to N.W. 9th) • Mixed -Use — 40 units per acre (this land use designation is placed on the CRA -owned Ocean Breeze East block and on CRA -owned property along MLK, Jr. Boulevard) • Local Retail Commercial, General Commercial, Industrial, Recreational, and Public & Private Governmental/Institutional Below is a table of the proposed land use and zoning designations that will apply within the Federal Highway Corridor District: Table 7: Recommended Future Land Use (FLU) Classifications within the Heart of Boynton District LAND USE DENSITY CORRESPONDING ZONING DENSITY GAP IG HEIGHT Mixon -Use Medium" 50 MU -2, MU -3 50 75' Mixed -Use Law 20 MU -1 20 45' High Density Residential 15 R4, IPUD 15 45' Medium Density 11 R, (PUD Residential 11 45' Lew Density 7.5 R - 'I -AAA, R 1-AAB R -1 -AA, R -1-A, R-1, Residential PUD 7.5 45' Local Retail Commercial n1a C-2, C-, PCD rVa 45' General rVa C-4 Commercial n1a 45' Industrial n1a M-1 n1a 45' PPGII rVa Public Usage n1a 45' Recreation Wa Recreation n1a 45' W Properties located within the TOD may recieve a 25% density bonus Figure 63: Recommended Land Use for the Heart of Boynton District LEGEND r" Recreational(R) Low Density Residential (LDR) 5 du/ac ;Medium Density Residential (MDR) 11 ducat High Density Residents] (HDR)15 dulzc Special High Density Residenlisl (5HUR) 20du/ac Inslitrid-al (PPGI) MLacal Retail Commercial (LRC) kk General Commercial (GC) Mixed Use Low (MUL) 20 dreac Mlxad Use Medium (MUM) 50 du/ac Mixed Use High (MUH) 00 du/ac TOD Recommendations: Urban Design • There are three architectural styles of historic structures in the Heart of Boynton: Mission, Frame Vernacular, and Mediterranean Revival. When building in this District, new development shall attempt to utilize one of these architectural styles. • A Historic Cottage District should be considered adjacent to the proposed Cottage District; where feasible, historically contributing cottages in the area shall be relocated in the Historic Cottage District. • Commercial buildings fronting MLK Jr., Boulevard and/or Seacrest Boulevard shall maximize the amount of glazing. • Residential buildings fronting MLK Jr., Boulevard and/or Seacrest Boulevard shall be designed to have pedestrian access from the main road and have front door facing the main road. • All buildings along MLK Jr., Boulevard and/or Seacrest Boulevard shall be set back to allow for a pedestrian zone. • Approximately 75% of the lot frontage must be occupied by structure and be adjacent to the pedestrian zone. • Buildings fronting MLK Jr., Boulevard shall be a maximum of two story and stepped back to continue to the maximum allowed height in the designated Zoning District. • Parking shall be located to the rear or side of the buildings • Curb cuts shall be permitted on Boynton Beach Blvd only when access is not possible from the rear or side. • When adjacent to commercial uses, single-family areas shall be protected through the use of landscape buffers and/or walls as appropriate. MILK rci l Multifamily— Model l +_S_.'n 'an Breeze -ast, MI R Figure 64: Heart of Boynton Projects Sara Sims Park Expansion Working with residents of the community, the CRAand its consultant created a master plan for the expansion and improvement of Sara Sims Park. The CRA has also purchased seven properties and deeded them to the City in preparation for the eventual expansion of the park. Staff will review the feasibility of converting a portion of Sara Sims Park Master Plan, along the western boundary, from Recreational Land Use to Single Family. This process shall include a public meeting, the Parks and Recreation Board review and recommendation, and Clty Commision approval. Ocean Breeze East The CRA owns 4.5 acres of vacant land east of Seacrest Boulevard between N.E. 6th and 7th Avenues. The CRA is seeking a private development partner to build a multi -family project on the site. Cottage District The CRA owns approximately 5 acres on the block between N.E. 4th and 5th Avenue. The CRA's goal for this site is to attract a private development partner to build single-family for -sale homes in the style of the surrounding historic cottages. MLK Commercial Leveraging CRA -owned land and economic development grants, the CRA was able to bring a Family Dollar store to the Martin Luther King, Jr. Boulevard corridor in 2015. The CRA owns additional land on the corridor and continues to work with developers to attract new and needed neighborhood retail. MLK Multi Family Utilizing CRA -owned land, the CRA is seeking to attract a private development partner to build a multi- family development along the Martin Luther King, Jr. Boulevard corridor. The development may include commercial uses. Figure 66: Ocean Breeze East Figure 67: Cottage District Figure 68: Example of a Commercial Project on MLK Jr. Blvd. Figure 69: Example of Multi Family Project on MLK Jr. Blvd. ATTACHMENT II APPRAISAL REPORT VACANT LAND 340 EAST MARTIN LUTHER KING, JR. BOULEVARD BOYNTON BEACH, FLORIDA 33435 by Vance Real Estate Service 7481 Northwest Fourth Street Plantation, Florida 33317-2204 for Boynton Beach Community Redevelopment Agency 710 North Federal Highway Boynton Beach, FL 33435 March 27, 2017 March 27, 2017 Boynton Beach Community Redevelopment Agency 710 North Federal Highway Boynton Beach, FL 33435 RE: Vacant Land, 340 East Martin Luther King, Jr. Boulevard, Boynton Beach, FL 33435 (Legal description is in the report) Ladies and Gentlemen: In fulfillment of our agreement, we transmit our Appraisal Report, in which we develop an opinion of market value for the fee simple estate in the referenced real property as of March 27, 2017. The report sets forth our value conclusion, along with data and reasoning supporting our opinion. This report was prepared for and our professional fee billed to Boynton Beach Community Redevelopment Agency. Our analyses have been prepared in conformance with the Uniform Standards of Professional Appraisal Practice (USPAP 2016-2017). This report is for exclusive use of the client for internal audit purposes. Jesse B. Vance, Jr. and Claudia Vance visited the property. If you have questions or further needs, please contact the undersigned. As a result of our analyses, we have developed the following opinion of the market value of the appraised property, subject to definitions, certifications, and limiting conditions set forth in the attached report. FORTY-SIX THOUSAND FIVE HUNDRED DOLLARS $46,500 (THIS LETTER MUST REMAIN ATTACHED TO THE REPORT WITH THIRTY-EIGHT (38) NUMBERED PAGES PLUS ADDENDA FOR THE VALUE OPINION SET FORTH TO BE CONSIDERED VALID.) Respectfully submitted, Jesse B. Vance, Jr., MAI, SRA, ASA State -Certified General Real Estate Appraiser RZ-85 Claudia Vance, MAI State -Certified General Real Estate Appraiser RZ-173 MBA REAL ESTATE MANAGEMENT AND DEVELOPMENT 7481 Northwest 4`h Street, Plantation, FL 33317-2204 954/583-2116 TABLE OF CONTENTS Pate Number Title Page i Letter of Transmittal ii Table of Contents iii INTRODUCTION P oto grap s o t e Subject ect Property 1 Aerial photo of the Subject Property 3 1-3-5 Mile Location Map 4 1-3-5 Mile Summary of Demographic Statistics 5 Summary of Important Facts and Conclusions 7 DESCRIPTIONS ANALYSES & CONCLUSIONS I entity ot Client and Intended User 8 Intended Use 8 Identification of Real Estate Appraised 8 Ownership 8 Property Address and Legal Description 8 Real Estate Tax Analysis 9 Market Area Description 10 Zoning 14 Site Description 15 Real Property Interest Appraised 16 Appraisal Purpose and Definition of Market Value 17 Effective Dates of the Appraisal and Report 18 Scope of the Work 18 Summary of Information Considered 18 Property History 19 Highest and Best Use 19 SALES COMPARISON APPROACH- LAND VALUE Land Sales Location Map 22 Land Sales Documentation 23 Land Sales Comparison Chart 31 Valuation by Sales Comparison 32 FINAL VALUE OPINION 36 Certification and Limiting Conditions 37 ADDENDA Acquiring deed Copy of "R-2" Zoning Ordinance USPAP Standards Rule 2-2a Qualifications of the Appraisers INTRODUCTION APPRAISED LAND, LOOKING SOUTH 340 E MARTIN LUTHER KING, JR. BOULEVARD MARTIN LUTHER KING, JR. BOULEVARD, LOOKING WEST PHOTOS OF APPRAISED LAND & ENVIRONS 340 E MARTIN LUTHER KING, JR. BOULEVARD BOYNTON BEACH, FL 1 MARTIN LUTHER KING, JR. BOULEVARD LOOKING EAST PHOTOS OF APPRAISED LAND & ENVIRONS 340 E MARTIN LUTHER KING, JR. BOULEVARD BOYNTON BEACH, FL � M 1-3-5 MILE RADII FROM THE APPRAISED PROPERTY 340 NE 101h Avenue Boynton Beach, Florida BBCRA 340 NE 10 Ave 3.2017 340 NE 10th Ave, Boynton Beach, Florida, 33435 Rings: 1, 3, 5 mile radii VANCE REAL ESTATE SERVICE In the identified area, the current year population is 186,486. In 2010, the Census count in the area was 176,139. The rate of change since 2010 was 0.92% annually. The five-year projection for the population in the area is 197,299 representing a change of 1.13% annually from 2016 to 2021. Currently, the population is 48.0% male and 52.0% female. The median age in this area is 41.1, compared to U.S. median age of 38.0. 1 mile 3 miles 5 miles Population 4,891 34,199 75,282 2000 Population 12,736 71,247 157,763 2010 Population 13,037 80,502 176,139 2016 Population 14,239 86,590 186,486 2021 Population 15,322 92,308 197,299 2000-2010 Annual Rate 0.23% 1.23% 1.11% 2010-2016 Annual Rate 1.42% 1.17% 0.92% 2016-2021 Annual Rate 1.48% 1.29% 1.13% 2016 Male Population 49.2% 47.9% 48.0% 2016 Female Population 50.8% 52.1% 52.0% 2016 Median Age 41.1 43.0 45.6 In the identified area, the current year population is 186,486. In 2010, the Census count in the area was 176,139. The rate of change since 2010 was 0.92% annually. The five-year projection for the population in the area is 197,299 representing a change of 1.13% annually from 2016 to 2021. Currently, the population is 48.0% male and 52.0% female. The median age in this area is 41.1, compared to U.S. median age of 38.0. 4,697 30,927 68,756 Race and (Ethnicity 4,891 34,199 75,282 2016 White Alone 37.1% 61.1% 65.9% 2016 Black Alone 56.5% 30.2% 24.8% 2016 American Indian/Alaska Native Alone 0.5% 0.3% 0.5% 2016 Asian Alone 0.9% 2.0% 2.3% 2016 Pacific Islander Alone 0.0% 0.0% 0.0% 2016 Other Race 2.7% 3.5% 3.9% 2016 Two or More Races 2.3% 2.8% 2.6% 2016 Hispanic Origin (Any Race) 11.6% 17.0% 18.0% Persons of Hispanic origin represent 18.0% of the population in the identified area compared to 17.9% of the U.S. population. Persons of Hispanic Origin may be of any race. The Diversity Index, which measures the probability that two people from the same area will be from different race/ethnic groups, is 65.1 in the identified area, compared to 63.5 for the U.S. as a whole. 2000 Households 4,697 30,927 68,756 2010 Households 4,891 34,199 75,282 2016 Total Households 5,379 36,560 78,894 2021 Total Households 5,811 38,886 83,100 2000-2010 Annual Rate 0.41% 1.01% 0.91% 2010-2016 Annual Rate 1.53% 1.07% 0.75% 2016-2021 Annual Rate 1.56% 1.24% 1.04% 2016 Average Household Size 2.62 2.34 2.34 The household count in this area has changed from 75,282 in 2010 to 78,894 in the current year, a change of 0.75% annually. The five-year projection of households is 83,100, a change of 1.04% annually from the current year total. Average household size is currently 2.34, compared to 2.31 in the year 2010. The number of families in the current year is 45,617 in the specified area. Data Note: Income is expressed in current dollars Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2016 and 2021. Esri converted Census 2000 data into 2010 geography. March 27, 2017 5 BBCRA 340 NE 10 Ave 3.2017 340 NE 10th Ave, Boynton Beach, Florida, 33435 Rings: 1, 3, 5 mile radii VANCE REAL ESTATE SERVICE Current average household income is $71,852 in this area, compared to $77,008 for all U.S. households. Average household income is projected to be $79,281 in five years, compared to $84,021 for all U.S. households Current per capita income is $30,833 in the area, compared to the U.S. per capita income of $29,472. The per capita income is projected to be $33,807 in five years, compared to $32,025 for all U.S. households Housing 1 mile 3 miles 5 miles Median Household Income 5,696 36,904 82,083 2016 Median Household Income $37,178 $46,101 $49,379 2021 Median Household Income $40,330 $53,203 $55,840 2016-2021 Annual Rate 1.64% 2.91% 2.49% Average Household Income 6,390 43,278 94,291 2016 Average Household Income $58,929 $65,357 $71,852 2021 Average Household Income $64,178 $71,994 $79,281 2016-2021 Annual Rate 1.72% 1.95% 1.99% Per Capita Income 6,992 46,054 98,899 2016 Per Capita Income $22,548 $28,175 $30,833 2021 Per Capita Income $24,572 $30,882 $33,807 2016-2021 Annual Rate 1.73% 1.85% 1.86% Households by Income 7,540 48,546 103,694 Current median household income is $49,379 in the area, compared to $54,149 for all U.S. households. Median household income is 22,299 projected to be $55,840 in five years, compared to $59,476 for all U.S. households 2,789 16,587 Current average household income is $71,852 in this area, compared to $77,008 for all U.S. households. Average household income is projected to be $79,281 in five years, compared to $84,021 for all U.S. households Current per capita income is $30,833 in the area, compared to the U.S. per capita income of $29,472. The per capita income is projected to be $33,807 in five years, compared to $32,025 for all U.S. households Housing 2000 Total Housing Units 5,696 36,904 82,083 2000 Owner Occupied Housing Units 3,130 22,381 51,478 2000 Renter Occupied Housing Units 1,567 8,545 17,277 2000 Vacant Housing Units 999 5,978 13,328 2010 Total Housing Units 6,390 43,278 94,291 2010 Owner Occupied Housing Units 2,926 22,145 52,383 2010 Renter Occupied Housing Units 1,965 12,054 22,899 2010 Vacant Housing Units 1,499 9,079 19,009 2016 Total Housing Units 6,992 46,054 98,899 2016 Owner Occupied Housing Units 2,840 21,336 50,572 2016 Renter Occupied Housing Units 2,540 15,223 28,321 2016 Vacant Housing Units 1,613 9,494 20,005 2021 Total Housing Units 7,540 48,546 103,694 2021 Owner Occupied Housing Units 3,022 22,299 52,664 2021 Renter Occupied Housing Units 2,789 16,587 30,436 2021 Vacant Housing Units 1,729 9,660 20,594 Currently, 51.1% of the 98,899 housing units in the area are owner occupied; 28.6%, renter occupied; and 20.2% are vacant. Currently, in the U.S., 55.4% of the housing units in the area are owner occupied; 32.9% are renter occupied; and 11.7% are vacant. In 2010, there were 94,291 housing units in the area - 55.6% owner occupied, 24.3% renter occupied, and 20.2% vacant. The annual rate of change in housing units since 2010 is 2.14%. Median home value in the area is $190,198, compared to a median home value of $198,891 for the U.S. In five years, median value is projected to change by 3.13% annually to $221,846. Data Note: Income is expressed in current dollars Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2016 and 2021. Esri converted Census 2000 data into 2010 geography. March 27, 2017 1.1 SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS PROPERTY APPRAISED: OWNERSHIP: Vacant land 340 East Martin Luther King, Jr. Boulevard Boynton Beach, FL 33435 Larann Land Investments LLC c/o Anna Billingsley 835 Paw Prints Avenue Melbourne FL 32934 LAND AREA: 50 feet x 155 feet = 7,750 square feet Note: dimension and size are from public records. No sketch of survey is available for review. BUILDING IMPROVEMENTS: ZONING: APPRAISAL PURPOSE: INTEREST APPRAISED: CURRENT USE: HIGHEST AND BEST USE: None "R-2", Single and two-family residential district in the city of Boynton Beach To develop an opinion of market value Fee simple Vacant Single family residence under current zoning and land use VALUE BY THE SALES COMPARISON APPROACH: 7,750 square feet x $6.00 per square foot = FORTY-SIX THOUSAND FIVE HUNDRED DOLLARS 46 500 VALUATION DATE: March 27, 2017 Exposure Time: 12 months prior to selling at the appraised value 7 DESCRIPTIONS, ANALYSES, CONCLUSIONS APPRAISAL REPORT This is an APPRAISAL REPORT that complies with Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice (USPAP 2016 - 2017) 2-2(a)(i) State the identity of the client and any intended users, by name or type; The client and intended user of this report is the Boynton Beach Community Redevelopment Agency. 2-2(a)(ii) State the intended use of the appraisal; The intended use of the appraisal is for internal audit purposes. Any other use is not intended. 2-2(a)(iii) Summarize information sufficient to identify the real involved in the appraisal, including the physical, legal and economic property characteristics relevant to the assignment; Owner: Larann Land Investments LLC c/o Anna Billingsley 835 Paw Prints Avenue Melbourne, FL 32934 Property Address: 340 East Martin Luther King, Jr. Boulevard Boynton Beach, FL 33435 Legal Description: Lot 5 less the north 10 feet for road right-of-way, ROBERT WELLS SUBDIVISION, Plat Book 11, page 66, Palm Beach County, FL Census Tract No. 61 X, APPRAISAL REPORT (continued) 2-2(a)(iii) Summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal and economic characteristics relevant to the assignment; (continued) Real Estate Tax: Parcel Control Number: 08 43 45 2104 000 0050 Land Value: $11,982 Improvement Value: -0- 0 - Total Total Value: $11,982 Assessed Value: $ 8,346 Ad Valorem Tax: $ 208 Non Ad Valorem Tax: $ 0 Properties are assessed in arrears by the county property appraiser. The tax bill is issued in November and a 4% discount is given to a tax payer if the amount is paid in November. The discount diminishes until March, when the tax is due and payable. In Florida, the taxable (assessed) value for non - homesteaded properties can be increased to a maximum of 10% per year, from tax year 2009 going forward, based on a constitutional amendment voted on by the electorate of the state. There are some exceptions which relate to school taxing districts. However, the millage of the city can increase; thus, real estate taxes can continue to increase from year to year. The 10% per year increase cap accounts for the difference between the Total Value of the appraised property and the Assessed Value. 9 APPRAISAL REPORT (continued) 2-2(a)(iii) Summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal and economic characteristics relevant to the assignment; (continued) Market Area Description: Boundaries and Market Composition & Transportation Infrastructure The general market area is the City of Boynton Beach in eastern -central Palm Beach County. Population of the city is about 72,000 residents; land area of the municipality is about 16 square miles situated between Delray Beach on the south and Lake Worth on the north. The town was named for an early developer, Nathan Boynton, a former major in the Union Army in the Civil War. The city was founded in 1898 and incorporated in 1920. Most of the original buildings were destroyed in the hurricane of 1926, though a few remain. Others which were constructed in the early 1920's are still in use with repairs and replacements over the decades. Time and economic trends take a toll on properties; thus, in 1984 a redevelopment plan was adopted for the Community Redevelopment Area (CRA) in the city. It covers 1,650 acres in the central part of the municipality west of the Intracoastal Waterway. One of the districts in the CRA is the immediate subject market area known as the Heart of Boynton (HOB), containing 380 acres. This area is the historic, older part of the CRA, with the following boundaries: Boynton Beach Canal (C-16) on the north, Florida East Coast (FEC) Railroad on the east, Interstate 95 on the west, and jagged line a few blocks north of Boynton Beach Boulevard as the south boundary, at about NE 3 Avenue. Agriculture and farming had been important activities in past centuries in Boynton Beach. Commerce came to the area when Henry Flagler extended the Florida East Coast Railway from West Palm Beach to Miami in 1896. The railroad was the main mode of transportation to bring visitors and manufactured products to the city as well as transporting produce grown in the vicinity out of the area to other cities in the southeastern United States. 10 APPRAISAL REPORT (continued) 2-2(a)(iii) Summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal and economic characteristics relevant to the assignment; (continued) Boynton Beach Boulevard is the principal east -west artery in the subject market area, having an interchange with Interstate 95 on the west side of the neighborhood. The boulevard continues west through Palm Beach County to its terminus at State Road 7/ U S Highway 441. Two miles east of State Road 7, it has an interchange with Florida's Turnpike. Boynton Beach Boulevard commences on the east at U S Highway 1, just to the east of the FEC Railroad. U S Highway 1 is the main north -south artery through eastern Palm Beach County and extends along the eastern seaboard of the United States. Seacrest Boulevard is a main north -south artery through the City of Boynton Beach and south into Delray Beach. Martin Luther King, Jr. Boulevard is an east -west thoroughfare through the Heart of Boynton. The immediate subject market area is easily accessible by main roads and Interstate 95. Property types in the Heart of Boynton are smaller commercial establishments along the main roads, light industrial close to the FEC Railroad, municipal facilities, single family residential, small multi -family dwellings, a few apartment buildings and places of worship. As mentioned, some structures date back to the 1920's, but most which are still usable were built in the mid -twentieth century. Municipal facilities in the immediate subject market area include parks, two elementary schools and a community center. Recent projects implemented in the Heart of Boynton are: • Seacrest Boulevard Streetscape • Carolyn Sims Center • Ocean Breeze West - 21 homes joint venture with Habitat for Humanity • Construction of single family residences on Martin Luther King, Jr. Boulevard 11 APPRAISAL REPORT (continued) 2-2(a)(iii) Summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal and economic characteristics relevant to the assignment; (continued) Future projects are: • Revitalization of Martin Luther King, Jr. Boulevard and surroundings • Redevelopment of the Public Works site • Establishment of mixed use districts of residential and commercial • Expansion of light industrial near the FEC Railroad • Widening and extension of NW 11 Avenue, west of Seacrest Boulevard. Population Trends The demographic survey in the beginning of the report of 1, 3, and 5 mile radial circles from the appraised property shows the median household income for 2016 in the one -mile radius is $37,034, for three miles it is $46,101, and $49,379 for the five mile circle. All are lower than the median household income for Palm Beach County of $54,400. In the one -mile circle, population is 14,239. In three miles, population increases to 86,590; at five miles, it is 186,486. However, about one-third of the three and five mile circles are over the Atlantic Ocean. Annual growth rate is anticipated to be 1.13% to 1.48% in the three circles during the next five years as the economy and job market improves in South Florida. 51% of the housing units are owner occupied, with 29% rented. The percentage of renters is higher in this market because many of the single family houses are owned by investors who purchased them after the economic crash in 2008. Vacancy is reported to be 20%; however, this amount is high due to the undercount of the other two categories. Median home value in the five -mile area is $190,198, including the highly priced homes fronting the Atlantic Ocean and Intracoastal Waterway, compared to median home value of $198,891 in the United States. The life cycle stage of the market area is stability, a period of equilibrium without marked gains or losses, after a period of decline. The purpose of the Heart of Boynton Community Redevelopment Plan is to revitalize the market area with new housing options and business opportunities. There are examples of new houses along Martin Luther King, Jr. Boulevard, with more planned in the immediate vicinity. 12 APPRAISAL REPORT (continued) 2-2(a)(iii) Summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal and economic characteristics relevant to the assignment; (continued) Economic Trends During 2005-2006, the subject market area was experiencing a rise in property prices due primarily to the availability of financing with adjustable rate mortgages. Interest rates adjusted upward, but rental rates of multi -family properties did not. For single family residences, interest rates on mortgages adjusted upward, but homeowners' incomes did not increase. Scenarios were the same for many property types, all with the same result of owners' inability to make the payments and mortgages foreclosed. This situation was exacerbated by the economic crash in late 2008, followed by the Great Recession. The foreclosure cycle appears to be near the end. Currently, sales are between individuals or investors who previously purchased the properties from foreclosing lenders and private parties who will reside in the properties or hold them in their investment portfolios. Third party lenders are providing financing to investors and residents, at high loan to price ratios. Sale prices for single-family residences in the subject market area and close vicinity are in the range of $85,000 to $180,000, depending on building size, age and condition. Price range for multi -family dwellings are from about $50,000 to $100,000 per unit based on the same factors. Land unit prices are from about $4.00 to $7.00 per square foot. Family Dollar Store is an addition to the subject market area; it consists of an 8,100 square foot commercial building at the southeast corner of the signalized intersection of Martin Luther King, Jr. Boulevard and North Seacrest Boulevard. More revitalization in the CRA is taking place along US Highway 1, in the southern part of the corridor near Ocean Avenue and Boynton Beach Boulevard with projects such as 500 Ocean, with 341 residential units, 13,500 square feet of retail space and 6,000 square feet of office. Ocean One at 114 N Federal Highway is planned for 358 apartments, 12,075 square feet of retail, 120 hotel room and 439 parking spaces. 13 APPRAISAL REPORT (continued) 2-2(a)(iii) Summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal and economic characteristics relevant to the assignment; (continued) Conclusion The immediate subject market area of the Heart of Boynton (HOB) has the components of an appealing neighborhood with schools, parks and recreation. HOB is easily accessible by main roads and Interstate 95. Goods and services are nearby on Boynton Beach Boulevard and U S Highway 1. With the involvement of the City of Boynton Beach and the Community Redevelopment Agency, Heart of Boynton Community Redevelopment Plan can continue to succeed in revitalizing the area. Land Use: Current land use is Medium Density Residential, maximum density 9.58 dwelling units per acre Recommended Land Use is Mixed Use Low Density, allowing other use besides just residential, with a density of 20 dwelling units per acre in multi- story structures. Greater density increases the production of the land. Zoning: "R-2", Single and Two-family Residential District with the purpose to implement the medium density residential future land use map classification of the comprehensive plan. The intent of the district is to stabilize and protect existing residential neighborhoods with density no greater than 10 dwelling units per acre, and allow limited types of non-residential uses. Minimum lot area is 4,500 square feet per unit for a duplex; minimum lot frontage is 75 feet. Single family dwellings shall be constructed on lots that are no less than 6,000 square feet with a width of at least 60 feet and follow the building and site regulations of the "R-1", Single Family District. Excerpt from the zoning code is in the Addenda. 14 APPRAISAL REPORT (continued) 2-2(a)(iii) Summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal and economic characteristics relevant to the assignment; (continued) The appraised site is comprised of one platted lot, with a width of 50 feet and size of 7,750 square feet. Since the lot was platted prior to the current zoning standards, it appears to be a legal non -conformity to be used as for a single family residence. However, determination of use and non -conformities of the site are made by Boynton Beach City officials. Parking: Two parking spaces are required for a single-family residence. There seems to be adequate land to comply with this requirement. Platting: The appraised land consists of one platted lot. Site Description: The shape of the site is rectangular. Approximate dimensions and size are from public records. North boundary on E MLK Boulevard: 50 feet East boundary on adjacent property: 155 feet South boundary adjacent property: 50 feet West boundary on adjacent property: 155 feet Total: 7,750 square feet or 0.1779acres Utilities: All utilities are available to the site. Access: The site is accessible via East Martin Luther King, Jr. Boulevard, a main thoroughfare in the Heart of Boynton. It was widened to have parallel parking bays separated by landscaped islands, sidewalks, drainage and streetlights. The boulevard intersects with Seacrest Boulevard about two blocks to the west and intersects with North Railroad Avenue about one block to the east. 15 APPRAISAL REPORT (continued) 2-2(a)(iii) Summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal and economic characteristics relevant to the assignment; (continued) Easements: Easements are not noted on original plat. If they exist, utility easements would be most probably be around the perimeter of the lot. Encroachments: NE 3 Street terminates on the south border of the appraised land. At that point, it is a dirt path which is a cut -through to the rear of the property to the east of the subject, which is improved with a two-story commercial building. The path cuts across the southeast corner of the subject lot. Improvement Description: No building improvements on the site. Environmental Assessment: No assessment was available for review. 2-2(a)(iv) State the real property interest appraised; A person who owns all the property rights is said to have fee simple title. A fee simple title implies absolute ownership unencumbered by any other interest or estate. Partial interests in real estate are created by selling, leasing, et cetera. Partial estates include leased fee and leasehold estates. The interest appraised is fee simple. 16 APPRAISAL REPORT (continued) 2-2(a)(v) State the type and definition of value and cite the source of the definition; The purpose of the appraisal is to develop an opinion of market value of the subject property as of March 27, 2017. MARKET VALUE: a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal. The conditions included in market value definitions establish market perspectives for development of the opinion. These conditions may vary from definition to definition but generally fall into three categories: 1. the relationship, knowledge, and inotivation of the parties (i.e., seller and buyer); 2. the terns of sale (e.g., cash, cash equivalent, or other terns); and 3. the conditions of sale (e.g., exposure in a competitive market for a reasonable time prior to sale). Market value appraisals are distinct from appraisals completed for other purposes because market value appraisals are based on a market perspective and on a normal or typical premise. These criteria are illustrated in the following definition of Market Value*, provided here only as an example. Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised and acting in what they consider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and S. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. * This example definition is from regulations published by federal regulatory agencies pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 between July 5, 1990, and August 24, 1990, by the Federal Reserve System (FRS), National Credit Union Administration (NCUA), Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), and the Office of Comptroller of the Currency (OCC). This definition is also referenced in regulations jointly published by the OCC, OTS, FRS, and FDIC on June 7, 1994, and in the Interagency Appraisal and Evaluation Guidelines, dated December, 2010. Florida Court Definition: "Market Value is the price that a seller willing, but not compelled to sell, and a buyer willing, but not compelled to buy, would agree to in fair negotiations with knowledge of all the facts." [Source: Fla. Power & L!Yht Co., v. denninss, 518 So.2d 895 (Fla. 1987)] 17 APPRAISAL REPORT (continued) 2-2(a)(vi) State the effective date of the appraisal and the date of the report; A) Effective Date of the Appraisal: March 27, 2017 B) Date of the Report: March 27, 2017 2-2(a)(vii) Summarize the scope of work used to develop the appraisal; The appraisal problem is to develop an opinion of value of the property based on its highest and best use. The appraiser inspected the property and photographed it. A thorough investigation was made into the physical characteristics of the property that could affect its value. The market area was surveyed to determine its stage of the life cycle. Research was conducted to ascertain economic factors that might influence value. Data research consisted of collecting, confirming, and reporting vacant land sales. The process included searches and analyses, inspections and confirmations, and final reporting. The appraiser examined several sources of sales data, including the multiple listing service, Palm Beach County Appraiser's records, the public records, and data from the appraiser's plant. For Sales Comparison Approach, land sales are compared to each other and to the property under appraisement to arrive at an opinion of value. 2-2(a)(viii) Summarize the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales comparison approach, cost approach, or income approach must be explained; The information analyzed and appraisal method used is detailed in the valuation section of the report. Further, the reasoning that supports the analyses, opinions, and conclusions is explained in the valuation section. Neither the Cost nor Income Approaches are applicable to individual lots. Exclusion of these approaches to value still produces a creditable report. APPRAISAL REPORT (continued) SR I-5 When the value opinion to be developed is market value, if such information is available in the normal course of business: a) analyze all agreements of sale, options, or listings of the subject property current as of the effective date of the appraisal; and There are no known agreements for sale, options or listings of the appraised property as of the effective date of the appraisal. b) analyze all sales of the subject property that occurred within the three (3) years prior to the effective date of the appraisal. The appraised property was acquired by warranty deed for on May 7, 2004 for $35,000 or $4.52 per square foot. A copy of the deed is in the Addenda. 2-2(a)(ix) State the use of the real estate existing as of the date of value, and the use of the real estate or personal property reflected in the appraisal; The use of the real estate on the date of valuation is vacant land, and it is this use which is reflected in the appraisal. No personal property is included in the valuation. 2-2(a)(x) When an opinion of highest and best use was developed by the appraiser, summarize the support and rationale for that opinion. HIGHEST AND BEST USE OF THE PROPERTY AS VACANT Physically Possible as Vacant No soil or subsoil tests are available for review. However, some of the surrounding land has been improved with residences since the 1920s. The land is level and filled to street grade. Land size is 7,750 square feet and rectangular in shape. All utilities are available to the site. The site is accessible via East Martin Luther King, Jr. Boulevard. Physical constraint to develop the site is its size which governs the number of potential improvements which can be placed on it. 19 HIGHEST AND BEST USE OF THE PROPERTY AS VACANT Legally Permissible as Vacant Legal restrictions to the development of the site consist of land use designation, building and zoning codes, platting restrictions and restrictive covenants. Land use designation is medium density residential, maximum density of 9.58 dwelling units per acre. Zoning is "R-2", Single family and Two-family Residential District in the City of Boynton Beach. Maximum number of dwelling units per lot in "R-2" district is two if the lot size meets current code. The appraised site consists of one platted lot with a size of 7,750 square feet, potentially permitting single family residential use. This use is consistent with land use. The Boynton Beach CRA future land use plan for the appraised lot and surrounding blocks are for them to be Mixed Use Low Density (MUL) of 20 dwelling units per acre, about double the current density. The change would take advantage of the frontage along upgraded Martin Luther King, Jr. Boulevard to promote commercial use on the first floor and residential on upper levels. The lots abutting those fronting the boulevard, to the north and south, would also have the MUL designation to permit larger sites for the new type of improvements. A land use change is required for the implementation of such a future plan. Financially Feasible as Vacant The third test of Highest and Best Use is economic feasibility. Demand for a certain property type must be evident for it to be feasible. For it to be financially feasible, the use must be marketable and provide the investor with a competitive return when compared with alternate uses. Currently, the land concerned is used for parking by the Haitian Pentecostal Church at 428 E Martin Luther King, Jr. Boulevard, which is not the highest and best use of the site. The immediate subject market area has been improved with single-family residences and small multi -family dwellings for almost 100 years. Residences come to the end of their economic lives, improvements are razed and the sites are redeveloped with modern structures. There are examples of this cycle throughout the subject market area. New redevelopment projects in the subject vicinity are Ocean Breeze West with 21 homes, Eastview Park with market rate houses ranging from $255,000 to $300,000 constructed by D R Horton, and four new houses on West Martin Luther King, Jr. Boulevard sold from $166,000 to $195,000. 20 HIGHEST AND BEST USE OF THE PROPERTY AS VACANT The four houses are the result of the work of the Boynton Beach CRA and Boynton Beach Faith -Based Community Development Corporation. Current financially feasible use of the subject site is to improve it with a single-family residence based on the existing land use and zoning. If the land use is changed to Mixed Use Low Density, then the financially feasible use of the parcel is to assemble it with surrounding properties and develop the larger site with a commercial use on the first level and dwelling units on the upper floors. Maximally Productive as Vacant In summary, the current Highest and Best Use of the land appraised as vacant is a single-family residence. Such uses would be physically possible, probably legally permissible, financially feasible and maximally productive 2-2(a)(xi) Clearly and Conspicuously: State all extraordinary assumptions and hypothetical conditions; and state that their use might have affected the assignment result. There are no extraordinary assumptions or hypothetical conditions in this report. 2-2(a)(xii) Include a signed certification in accordance with Standards Rule 2-3 See signed certification in report. 21 SALES COMPARISON APPROACH LAND VALUATION Subject & Land Sales Locations 1 L -1-H DR L 9 J I SHORE DR Boyn gm Canal LAND SALE 3 T—HAMER�T_11 LAND SAL hd , NW 13P�! NW 12TH AV E::�;!I2TH 11VE Fn F_ [NW1 10TH AV N L T�IER KfNG �T: E 4. NW 9TH AVE 41* NE STH AVE NE E3 VE rrw S B-74 A NE aTH AVE SII SUBJECT 340 E. MILK Blvd F NW 7TH AVE NE 7TH E _ F.F-IF ��J NE STH AVE 1 NE5TH AVEC AVE "J 5TH RVE N -NAE—) NE 4TH AVE a,_F 4TH AVE NE 3R I f VE tF LAND SALE 1 SW_.1 T AVE YtiIL 3 RD AV . ..... . ........... . PiSE41AVErw !E""E" I IF I I A�V E 5. 4TH 'VE f WETH AVE F SW 5TH AYE SF 5TH AVE L_ HORIZONSST VW11 SW 6TH AVE LS11 =-H Ln= ft Data use subject to license. 0 DeLorme- DeLorme Street Atlas USA(D 2089_ V 0 400 860 1200 1688 2000 lwww-delorme-com MN (6.6' W) Data Zoom 14-0 1 22 VACANT LAND SALES SALE NO. 1 LEGAL DESCRIPTION Lot 4, Block 2, Plat of Crescent Heights, Plat Book 24, Page 170 of Palm Beach County Public Records RECORDED O. R. Book 28265, Page 779, Palm Beach County Records GRANTOR S & P Capital, LLC GRANTEE George Ball DATE OF SALE April 22, 2016 LOCATION 208 SW 2nd Avenue, Boynton Beach, Florida ZONING "R-2" Residential/ Duplex SALE PRICE $67,500 LAND SIZE 10,890 (75'x 145') UNITS OF COMPARISON $6.20/square foot FOLIO NUMBER 08-43-45-28-17-002-0040 CONDITIONS OF SALE Arm's length cash transaction. CONFIRMED Grantee, George Ball COMMENTS Purchased for sale or development 23 PHOTO OF LAND SALE NO. 1 208 SW 2nd Avenue Boynton Beach, Florida w VACANT LAND SALES SALE NO. 2 LEGAL DESCRIPTION Lot 156, ARDEN PARK, Plat Book 2, page 96, Palm Beach County, FL RECORDED O. R. Book 28869, Page 1453, Palm Beach County Records GRANTOR Violet Real Estate, Inc. GRANTEE Boynton Beach Community Redevelopment Agency DATE OF SALE January 31, 2017 LOCATION 1000 NE 3 Street, Boynton Beach, Florida ZONING "C-2", Neighborhood Commercial District SALE PRICE $30,000 LAND SIZE 7,500 square feet (50' x 150') UNITS OF COMPARISON $4.00 per square foot FOLIO NUMBERS 08-43-45-21-18-000-1560 CONDITIONS OF SALE Cash sale. Arm's length transaction. CONFIRMED Grantee, Boynton Beach CRA COMMENTS Boynton Beach CRA is acquiring properties in the area to be assembled into larger sites and readied for redeveloped. 25 W VACANT LAND SALES SALE NO. 3 LEGAL DESCRIPTION Lot 291 and the West 16.67 feet of Lot 292 of Cherry Hills, Plat Book 4, Page 58 of Palm Beach County Public Records. RECORDED O. R. Book 28587, Page 538, Palm Beach County Records GRANTOR D & J Housing LLC GRANTEE Boynton Beach Faith Based Community Development Corp DATE OF SALE September 15, 2016 LOCATION 518 NW 11th Avenue, Boynton Beach, Florida ZONING "R-2" Residential/ Duplex SALE PRICE $17,500 LAND SIZE 4,243 square feet (42.43' x 100') UNITS OF COMPARISON $4.12 per square foot FOLIO NUMBER 08-43-45-21-14-000-2910 CONDITIONS OF SALE Arm's length cash transaction. CONFIRMED Grantor: D&J Housing, Mr. Daniel Poje COMMENTS Purchased to build on and sell. (Old building demolished and removed) Prior sales in April, 2016 for $17,500 and May, 2015 for $11,500. 27 AERIAL PHOTO OF LAND SALE NO. 3 (old building demolished and removed) 518 NW 11th Avenue Boynton Beach, Florida VACANT LAND SALES SALE NO. 4 LEGAL DESCRIPTION Lot 27, Block 1 of E. Roberts Addition to Boynton, FLA, Plat Book 1, Page 123 of Palm Beach County Public Records. RECORDED O. R. Book 28358, Page 1638, Palm Beach County Records GRANTOR Larann Land Investments, LLC GRANTEE Bride of Christ Tabernacle, Inc. DATE OF SALE June 6, 2016 LOCATION 199 E. Martin Luther King Blvd. (NE 10 Avenue) Boynton Beach, Florida ZONING "R-2" Residential/ Duplex SALE PRICE $50,000 LAND SIZE 7,000 square feet (50.00' x 140') UNITS OF COMPARISON $7.14 per square foot * FOLIO NUMBER 08-43-45-21-27-001-0270 CONDITIONS OF SALE Arm's length cash transaction. CONFIRMED Grantee: Mr. Claude Maxime COMMENTS * Purchased by adjacent Church for church parking. m (Purchased by adjacent Church for parking) 30 LAND SALE COMPARISON CHART Land Sale Sale Size Site Price per Sales Date Price Sg.Ft. Zoning Square Foot 1 208 SW 2nd Avenue 04/22/2016 $67,500 10,890 "R-2" $6.20 Boynton Beach, Florida 2 1000 NE 3 Street 01/31/2017 $30,000 7,500 "C-2" $4.00 Boynton Beach, Florida 3 518 NW 11th Avenue 04/29/2016 $17,500 4,243 "R-2" $4.12 Boynton Beach, Florida 4 199 E. MLK Boulevard 06/06/2016 $50,000 7,000 "R-2" $7.14 Boynton Beach, Florida SUBJECT Value Date Value Unit Value 340 E. MLK Boulevard 03/27/2017 S46,500 7,750 "R-2" scmoo Boynton Beach, Florida 31 SALES COMPARISON APPROACH LAND VALUATION Of the several methods to develop an opinion of land value, the one considered to be the most reliable is the Sales Comparison Approach. In this method, sales of other similar vacant parcels are compared to the site concerned; then adjusted for differences to arrive at land value. For the opinion to be supportable, there must be an adequate number of sales of similar properties for comparison to the subject. The steps of sales comparison in Land Valuation are: 1) Locate and collect information of recent sales of sites most similar to the land being appraised. 2) Verify the sales information with parties to the transactions, including details of financing and any special considerations or non -typical market features. 3) Select relevant units of comparison and develop a comparative analysis for each unit. 4) Compare and adjust the sales to the subject using the significant, market -derived units of comparison. 5) Reconcile all value indications from the comparisons into a single value opinion by this approach. The appraised vacant land contains 7,750 square feet. Zoning is "R-2", Single and two family residential district, in the City of Boynton Beach. Based on the subject's land size and current zoning, its highest and best use is a single family residence, if permitted by the city. A search was made to find recent sales of sites similar to the subject in the central part of Boynton Beach. The appraisers examined many land sales in the immediate area and beyond. The four included in the report are more representative of market value for the land being valued. Details of the transactions are on the sale sheets and chart in this report. The unit of comparison relevant to this valuation is Sale Price per Square Foot of Land. The range of unit prices is from $4.00 per square foot to $7.14 per square foot of land. ELEMENTS OF COMPARISON Elements of comparison are the characteristics of transactions and properties that cause variation in prices paid for real estate. The Appraisal of Real Estate continues by stating that there are basic elements of comparison that may he considered in sales comparison analysis for land valuation. The first group is termed transactional elements being: real property rights conveyed, financing terms, conditions of sale and market conditions. This second group of property elements consists of location, physical characteristics and use. Each element is hereafter addressed. 32 LAND VALUATION Real Property Rights Conveyed A transaction price is always predicated on the real property interest conveyed. Property interests conveyed can either be fee simple (without tenants) or leased fee (subject to leases). An adjustment for property rights conveyed is based on whether a leased fee interest was sold with leases at market rent, or below or above market rent. In the case of land, there could be a land lease on the site that would create a leased fee interest. The lease amount would require examination to see if the tenant (the leasehold interest) had a value greater than zero. If it is, then the submarket rental rate would give some of the property value to the tenant. The sales were the conveyance of fee simple interest, the same interest valued for the land in question. No numerical adjustment is warranted for this element of comparison. Financing Terms Financing terms may have a bearing on the price paid for a property. Such terms that may affect price include assuming a mortgage at lower than current interest rates, the seller paying a buydown for the buyer to have a lower interest rate, or the seller providing financing for a transaction at lower than typical institutional rates. In all of these cases, the buyer could have paid higher prices in such transactions to obtain favorable financing. All of the land sales were in cash, which is the most common form of payment for vacant lots in the subject area. No adjustments are made for this element of comparison. Conditions of Sale Condition of sale addresses the motivation of buyers and sellers. Such motivations include a seller accepting a lower than market price for needed cash, a lender selling a previously foreclosed property to comply with regulations imposed on the institution, or a buyer purchasing an adjacent property. Even arm's length transactions may be the result of atypical motivation, such as lack of exposure time to the market, the result of an eminent domain proceeding, or tax consideration. The land sales cited in this report are arm's length transactions. Land Sales 1, 2 and 3 were purchased for future development. This typical motivation does not call for adjustment for this element of comparison. No. 4 was purchased for immediate use for parking by an adjacent church, needed to accommodate the added building on the property. The unit price for this sale is at the top of the data set, seemingly to have been influenced by the need of the grantee. To address this motivation for purchase, the unit price of No. 4 is adjusted downward qualitatively for condition of sale. The grantor of No. 4 is also the subject property owner, Larann Land Investments, LLC. (Continued) 33 LAND VALUATION (Continued) Market Conditions Comparable sales that occurred under different market conditions than those applicable to the subject on the effective date of the value estimate require adjustment for any differences that affect their value. The most common adjustment for market condition is time; however, the passage of time itself is not the cause of the adjustment. Market conditions which change over time are the reason to make the adjustment, such as appreciation or depreciation due to building inventory, changes in tax laws, investor's criteria, building moratoriums, fluctuation in supply and demand, et cetera. It is also possible that there is no change in market condition over time. Land Sales 1, 3 and 4 closed in 2016. Land Sale 2 has the most recent date of sale. All of the land sales occurred during current market conditions. No adjustment is required for this element of comparison. Transactional adjustments were considered; now, the land sales are likened to the subject and to each other for property elements of comparison. Location The location of a property is a key factor in prompting a buyer to purchase it. Location encompasses many aspects such as road frontage, access, traffic count, proximity to other competing properties, proximity to a market that will use the goods and services housed in a property, governmental influences, et cetera. Typically, properties in a neighborhood share some of the same locational characteristics such as age, condition, and style. However, there may be differences such as corner location, view, and zoning, to name a few. Properties of a similar type may be in different locations, yet the locations may share enough similarities to justify comparison. Factors of similarity between locations include average daily traffic counts, zoning and/or land use, and market composition. Locations of the appraised parcel and the land sales are in central Boynton Beach, where the peak of construction took place in the mid -twentieth century. Redevelopment is occurring because old improvements are razed to make way for new projects and due to the financial support of governmental and social agencies. The appraised site fronts Martin Luther King, Jr. Boulevard, a main neighborhood road with more of a streetscape than the surrounding roads. Land Sale 4 also fronts MLK, Jr. Boulevard, having the highest unit price in the data set; though the price appears to have been affected by the assemblage. Nevertheless, the location of the subject would have a positive effect on its unit value. Land Sales 1, 3 and 4 are in the same "R-2" zoning district as the land concerned. Sale 2 is in a small area of "C-2", Neighborhood Commercial zoning. When all or most of the surrounding properties in the "C-2" district are assembled, there will be a site large enough for a significant commercial development. However, those individual lots with commercial zoning do not have greater functional utility than other neighborhood lots zoned for residential use. (Continued) LAND VALUATION (Continued) Further, Land Sale 2 fronts NE 9 Avenue, with less exposure to traffic than lots bordering MLK, Jr. Boulevard. For these locational factors, Sale 2 is not superior to the other sales or the subject and not adjusted downward. Physical Characteristics Physical characteristics to be considered for adjustments are those that cause a difference in price to be paid by the market. A wide range of such items includes land size, shape, frontage, topography, view, access, functional utility, et cetera. Adjustments for physical characteristics are best derived from the market by paired sales comparison. Through the process of searching for comparable sales, the physical characteristics are of great import. From the universe of possible comparable sales, those that are most similar to the site appraised are presented in the report for analysis and comparison to the subject. The less the number of physical differences, the better. The appraised site contains 7,750 square feet, which is about in the mid-range of sizes of the land sales and close in size to Nos. 2 and 4. Land Sale 1 is the largest in the data set, having a corner location, with the potential of being developed with two units instead of one. Its development potential seemed to have had a positive effect on the sale price, which will be considered in the final valuation. The land sales and subject are basically rectangular in shape. The physical characteristics of the sales and subject are similar enough not to call for further adjustments. Use For sites to be comparable, they should have similar uses. Highest and Best Use for the Land Sales 3, 4 and the subject are for a single family residence. As mentioned, No. 1 has the potential of being improved with a two-family dwelling because of size, which will be considered qualitatively. Land Sale 2 has the potential for commercial use when assembled with adjacent lots that give the entire parcel frontage on MLK, Jr. Boulevard and/or North Railroad Avenue. The uses of the land sales have already been addresses in other elements of comparison of location and physical characteristics, with no further adjustment made here. (Continued) 35 LAND VALUATION (Continued) FINAL VALUE OPINION Currently, Land Sale 1 has more potential residential uses than Land Sales 3, 4 and the subject. However, No. 4 was purchased by an adjacent owner for parking, with the buyer apparently paying a premium for the lot. Land Sale 2 has commercial potential, though that is not reflected in the unit price. The land appraised fronts Martin Luther King, Jr. Boulevard which has already received upgrades to prepare the neighborhood for revitalization. The unit value for the subject would be less than Nos. 1 and 4, but greater than Land Sales 2 and 3. Considering all of the foregoing discussion, the unit value for the appraised land is in the mid-range of the sales at $6.00 per square foot. The quantity of the comparable data is sufficient to have an overview of the market for land in the central -eastern Boynton Beach. The quality of the data is good in that it provides a sound basis to develop an opinion of value for the land under appraisement. Based on the analysis and conclusions presented within the report, it is our opinion that the Market Value of the Fee Simple Estate of the Subject Property as of March 27, 2017 is: $6.00/sq.ft. x 7,750 square feet = FORTY-SIX THOUSAND FIVE HUNDRED DOLLARS 36 CERTIFICATION I certify that, to the best of my knowledge and belief, the statements contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions, and conclusions. I have no present or prospective interest in the property that is the subject of this report, and I have no bias or personal interest with the parties involved. The appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this report. I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. The analyses, opinions and conclusions were also developed and the report prepared in conformity with the Uniform Standards of Professional Appraisal Practice, which is included in the Appraisal Institute's Standards, and Chapter 475, Part 11 F.S. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. The use of this report is (also) subject to the requirements of the State of Florida relating to review by the Florida Real Estate Appraisal Board. I have visited the property that is the subject of this report on March 25, 2017. Jesse B. Vance, Jr. and Claudia Vance are responsible for the analyses, conclusions and opinions concerning real estate set forth in this report. No one else has provided significant professional service to the persons signing this report. The Appraisal Institute and the American Society of Appraisers each conduct programs of continuing education for their designated members. As of the date of this report, Jesse B. Vance, Jr. and Claudia Vance have completed the requirements of the continuing education program of the Appraisal Institute. Continuing educational requirements are also completed for the American Society of Appraisers and the State of Florida. March 27. 2017 Jesse B. Vance, Jr., MAI, SRA, ASA Florida State -Certified General Real Estate Appraiser No. RZ-85 &n� �� e March 27, 2017 Claudia Vance, MAI Florida State -Certified General Real Estate Appraiser No. RZ-173 37 CERTIFICATION AND LIMITING CONDITIONS The statements and conclusions contained in this report, subject to the limiting conditions hereafter cited, are correct to the best of the writers' knowledge. 1. The undersigned have personally inspected the subject of this report. No pertinent information has been knowingly withheld. 2. Unless specifically included, the subject is analyzed as though free and clear of liens and encumnbrances. 3. No responsibility is assn ned for legal matters, nor is an opinion of title rendered. Title is assn ned to be good and held in Fee Simple, unless excepted. 4. Legal descriptions and property dimensions have been furnished by others; no responsibility for their correctness is assn ned. Sketches which may be in the report are for illustrative purposes only. 5. Possession of any copy of this report does not carry with it the right of publication, duplication, or advertising using the writers' names or professional designations or membership organizations. 6. The writers are not required to testify without prior agreement. 7. Neither the employment to make this appraisal nor compensation therefore is contingent on the value reported. 8. Where divisions are made between land, improvements, etc., the values estimated for each apply only under the cited use or uses. 9. The value applies ONLY as of the date of valuation stated within the report. 10. The writers certify that they have no present, past or contemplated interest in the subject of this report - unless specifically stated. 11. This report is the property of the indicated client. It may not be used by any other party for any purpose not consistent with the written function of this report without the express written consent of the writers AND client. 12. The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Practice and Conduct of the Appraisal Institute. The work also conforms to the Uniform Standards of Professional Appraisal Practice. 13. Soil or sub -soil contarnination may exist from current or prior users, or users outside the property concerned. The appraisers are not qualified to detect such substances. We urge the client to retain an expert in this field if desired. 14. The appraisers have not been provided a Habitat Survey, Endangered Species Survey, or analysis by a qualified environmental specialist indicating the presence of or proximity to environmentally sensitive and/or protected land or species which could affect the use, and possibly, value of the appraised property. The appraisers are not qualified to identify these factors. We recornmend that an expert be hired where there may be reasonable cause to expect the presence of any of the cited elements. 15. Jesse B. Vance, Jr. and Claudia Vance are responsible for the analyses, conclusions, and opinions of real estate set forth in this report. No one else provided significant professional assistance to the signers of this report. 16. Prospective value is based on current conditions and trends. The appraisers cannot be held responsible for unforeseeable events which might alter market conditions upon which market value opinion has been developed. 17. The appraisers certify that they have the knowledge and experience required to perforn this appraisal assignment. 18. The appraisers reserve the right to amend or change this report at any time additional market information is obtained which would significantly affect the value. Jesse B. Vance, Jr., MAI, SRA, ASA State -Certified General Real Estate Appraiser No. RZ 85 March 27, 2017 Claudia Vance, MAI State -Certified General Real Estate Appraiser No. RZ 173 March 27, 2017 In ADDENDA Sra �U\�h3 This Warranty Deed Made this 7th day of May, 2004 by DAVID t EUNICE, A MARRIED MAN hereinafter called the grantor, to LARANN,LLC whose post office address is: 1300 NORTH FEDERAL HIGHWAY, SUITE 110 BOCA RATON, FL 33432 CFN 20040265809 OR HK 16938 PG 0750 RECORDED 85/11/2W 15t1B:05 Pals Beach County, Florida ANT 35, am. N Doc Stamp 245.09 Dorothy N Milken, Clerk of Court harelnefir cal (Vyttenever ore rrn "grantor' and "grantee" include aN the gentles to thIs insVurrhenl end the heirs, lapel represerdativee end esaigne of IndNW ahlcceesora and assigns d oorporetione) Wlfnpaeth, n1or, for and in txhnsideratlon d the sum of 510.00 and other valhsble wrheideredorhe, receipt whored Is hereby acknoNAedg grarne, bergalns, salla, clans. rerrhisea, releasor, oorrverys end confirms tanto the grantee, ell !fret CarIshh land situate in PALM BEAC4tCount , P&Ide, viz: LOT 6, OF ROBERT WDITION, ACCORDING TO THE PLAT THEREOF RECORDED IN PLAT BOOK 11, PAGE(S) 86, OF THE PUBLIC MCORDS OF PALM BEACH COUNTY, FLORIDA. Said property is not the hwWl of the Grantors) under the laws and constitution of the Stats of Florida In that neither Grans) or an of the household of Grantor(s) reside thereon. 3ubled to covenants, restrictions, easements e"ord and tares for the currerht year. Parch Identlacation Number: 0111i3.46.21414:M-0 Together with all the tenernents, heredMsnlerds and To Have and to Hold, the same in fee simple f And the grantor hereby covermnts with said good right and Iswft1 authority to sell and corwey said h same against the lawhd claims of all persons wlhomwoa to Deoamber 31, 2003 In Wiliness Wtsreor, the said grantor has signed Signed, sealed and delivered 1n our presence: I thereto belonging or in anywise appertaining. is grantor Is lawfully seized of said land in fee simple; that the grantor has the grantor hereby fully warrants the tide to said land and cell defend the VA said land is free of al encumbrances except tame aoenring subs"uerd wpreaaMs the day and year first ebove written. State of Florida County of PALM BEA Tto foregoing instrument was aclr before me this 7th day of May, 2004, by DAVID Z EUNICE, A MARRIED MAN, who is me or who used PHOTO ID as Identification. r OT PUBLIC (sig Print Name: " ' My Commission Exp! w�:,` �. stamp/Seal: 0 ~� Prepared by emit Returned to: M OLE BAYNE Peggy M Ssntonledo ='E> ` °' MY dCuOl'srvAM� oa �(r 9B Sunbelt TitleAg Y EfPHS D&Mtef X4 PDkUr.d ^120 South Shore Blvd. Suite 222 WNlinptorh, FL 33411 File Number: 747040637 Incident to the Issuance of a title Insurance contract, wanantydew Rev. 122IM3 tp Book 16938/Page750 Page 1 of 1 E. R-2 Single and Two-family Residential District. 1. General. The purpose of the R-2 zoning district is to implement the medium density residential (MeDR) future land use map (FLUM) classification of the Comprehensive Plan. The intent of this conventional district is to stabilize and protect existing residential neighborhoods with densities no greater than ten (10) dwelling units per acre, and allowing limited types of non- residential uses. 2. Use(s) Allowed. See "Use Matrix Table 3-28" in Chapter 3, Article IV, Section 3.D. 3. Building and Site Regulations (Table 3-9). Existing and/or planned single-family homes shall conform to the R-1 district requirements; however, for duplex homes, the following lot and building requirements shall be observed: BUILDING/SITE REGULATIONS R-2 District Minimum lot area (per unit): 4,500 s.f.1 Minimum lot frontage: 75 feet Minimum yard setbacks: Front: 25 feet2 Rear: 25 feet3 Interior side: 10 feet2 Corner side: 25 feet2,3 Minimum living area: 750 s.f. Maximum lot coverage: 40% Maximum Floor Ratio Area (FAR) 0.104 Maximum structure height: 25 feet5 1 Single-family dwellings shall be constructed on lots that are no less than six thousand (6,000) square feet. 2 Pursuant to Section 8.B. below, parcels that have frontage on Martin Luther King Jr. Boulevard and are located within the Martin Luther King Boulevard Overlay Zone shall have front, side interior, and side corner setbacks in accordance with the mixed use -low intensity 1 zoning district (see Section 6.11. below). 3 On corner lots, the side setback adjacent to the street shall be not less than one-half (1/2) the front yard setback. However, where orientation of adjacent lots on both street frontages provide typical front yard setbacks, the comer lot shall provide for front yard setbacks along both streets. when two (2) front yard setbacks are provided for on a corner lot, no rear yard setback shall be required, only side yard setbacks shall be imposed. 4 A floor area ratio (FAR) up to 0.10 maybe considered for non-residential uses allowed within the R-2 district (see "Use Matrix" — Chapter 3, Article IV, Section 3), pursuant to the medium density residential land use category of the Comprehensive Plan. 5 Not to exceed two (2) stories. D. R-1 Single-family Residential District. 1. General. The purpose of the R-1 zoning district is to implement the moderate density residential (MoDR) future land use map (FLUM) classification of the Comprehensive Plan. The intent of this conventional district is to encourage single-family dwellings and structures at densities no greater than seven and one-half (7.5) dwelling units per acre, and allowing limited types of non-residential uses. 2. Use(s) Allowed. See "Use Matrix Table 3-28" in Chapter 3, Article IV, Section 3.1). 3. Building and Site Regulations (Table 3-8). The following lot and setback requirements shall be observed: BUILDING/SITE REGULATIONS R-1 District Minimum lot area: a 6,000 s.f. Minimum lot frontage: 60 feet Front: 25 feet Rear: 20 feet Special rear yard setback reduction for single -story building additions: I Abutting: I-95 or railroad tracks: 50% Abutting: Intracoastal: 50% Abutting: Lakes: 50% Abutting: Golf Course: 50% Abutting: Canals wider than 150 ft 50% Abutting: Canals narrower than 150 ft 33% Abutting: Perimeter walls of community that abut other than residential: Abutting: Commercial or Industrial 50% Abutting: Public or private park: 50% Interior side: 7.5 feet Comer side: 25 feet2 Minimum living area: 1,200 s.f. Maximum lot coverage: 50% Maximum structure height: 30 feet Q U x w C NO z z z z o 0 a w tn w w z z C 0 0 N N N kn y o YC a� YC a� O O ry a w w w v, O to O M y Q 00 O O o a� O o tn ^i Q' O O Q' x to z OO � N C kn z Q' O O Q' z z Q' O O Q' z 00z o o ¢ d to z C> 00tn z a� r Cd Cd on v to cd > C6 Q U � o .. 0 �, bye O �i Ow^ U oz 0 0'.2 > U as a o Z w'° z z z z z z z z 00 w w w w z z z z z w w w w z z z z z 00 z z z z z z z z N N N N O U z z z z z z z z O M N r— N O N / Fri O N O kn O to O to O kn M M O kn O kn 44 O N O by o 0 0 0 0 0 0 0 O kn O O O O O O O N N N <M N A4 o 0 0 0 0 0 0 0 M N -•� N N �n �n �n �n �n M �n �n yr Cd •.Ofir Cd � y bA y s, O cd to to 0-4 AC7 U U U w .. r� r� U rx U ---� EJ Sec. 11. Nonconforming Regulations. A. Lots and Parcels. 1. R-1 District, R -IA District, R-2 District, and R-3 District. A detached single-family dwelling may be constructed on any parcel located in an R-1, R-1 A, R-2, or R-3 district, provided that it meets all of the following requirements: a. The parcel contains at least one (1) whole platted lot, platted prior to August 7, 2001; b. The parcel, or assemblage of platted parcels which individually meet the requirements of paragraph a. above, has a frontage of not less than fifty (50) feet, and a lot area of not less than five thousand (5,000) square feet (irregular, other than rectangle -shaped lots with less than five thousand (5,000) square feet of area may be developed if in conformance with all other lot regulations); c. All such parcels, when developed, shall comply with all provisions of the Land Development Regulations and applicable building code regulations, including without limitation sections of the building code regulations regarding the impact of construction and drainage on or to adjacent properties. -- N 2. R-2 District. Within R-2 districts, in subdivisions platted prior to the effective date of these Regulations, where the platted lots have a frontage of at least forty (40) feet but less than fifty (50) feet, the following rules shall apply: a. A detached single-family dwelling may be constructed on any such parcel, provided that the parcel contains at least one (1) whole platted lot. b. A duplex dwelling may be constructed on any parcel, provided that it meets the following requirements: (1) The parcel contains at least two (2) whole platted lots; (2) Property cannot be acquired from adjacent parcels so as to make the subject parcel conforming, without causing the adjacent parcels to become nonconforming or more nonconforming. c. For any parcel, lot, or combination of lots, where the total frontage is equal or greater than one hundred twenty (120) feet, and the total area is greater than twelve thousand (12,000) square feet, said property shall not be developed except in accordance with the minimum frontage and lot area required in the R-2 zoning district. d. Ownership of parcels shall be determined by the property tax rolls on file in the Palm Beach County Property Appraiser's Office as of the effective date of these Regulations. 3. R- I AA District. A detached single-family dwelling may be constructed on any parcel located in an R-1 AA district, without requiring a variance, provided that it meets the following requirements: a. The parcel contains at least one (1) whole platted lot. b. The parcel has a frontage of not less than sixty (60) feet, and a lot area of not less than six thousand, seven hundred fifty (6,750) square feet in area. c. It would not be possible to acquire property from adjacent parcels so as to make the subject parcel conforming, without causing the adjacent parcels or structures thereon to become nonconforming or more nonconforming. For any parcel or lot, or combination of lots under the same ownership, where the total frontage and the total area is equal to or greater than that which is required by the R -IAA district building and site regulations, said property shall not be developed except in accordance with the minimum frontage and lot area required in the particular zoning district. Not more than one (1) parcel or lot, or combination of lots under the same ownership, that is nonconforming but which meets the requirements under b. above may be developed for a single- family house. ARTICLE V. MINIMUM OFF-STREET PARKING REQUIREMENTS Page 1 of 3 0 Sec. 2. Standards. A. General. 1. Rules and Methodology. a. Parking space requirements shall be computed on the basis of the principal use of a structure or lot, and using gross floor area unless stated otherwise in this article. Gross floor area, for the purposes of this subsection, shall include the floor area occupied by the principal use, plus the floor area occupied by all other enclosed spaces, including but not limited to storage rooms, maintenance and mechanical rooms, offices, lounges, restrooms, lobbies, basements, mezzanines, and hallways. b. Where several principal uses exist in one (1) structure or on one (1) lot, parking space requirements shall be computed separately for each principal use, unless stated otherwise in this article. Where parking spaces are required in this article for each of several principal uses that commonly occur together, this is done for the purpose of clarification only, and shall not limit the application of the requirement contained in this paragraph. c. A use shall be considered a principal use, for the purposes of this subsection, if it could exist separately from all other uses in the same structure or on the same lot, and would by itself generate significant parking demand. d. Where several principal uses exist in one (1) building or part of a building, and the floor area of each principal use cannot be clearly delineated, the parking space requirement for the use requiring the greatest number of parking spaces shall apply. e. Where a use is not listed below, parking space requirements shall be determined by the City Commission after review and recommendation by the Director of Planning and Zoning or designee. f. Where the number of required parking spaces as computed includes a fraction, the number of required parking spaces shall be the computed number rounded to the next highest whole number. g. Except as provided in Section 3.E. below, there shall be provided, at the time of the erection of any structure or establishment of any use, a number of off-street parking spaces in accordance with the following minimum requirements, and subject to the parking requirements of this subsection. Where a structure or use is enlarged or increased in capacity by any means, including a change in building occupancy which requires the provision of additional parking spaces, or a change in use to or which requires additional parking spaces, the minimum number of parking spaces shall be computed by applying these requirements to the entire structure or use. 2. Minimum Number of Required Off -Street Spaces for Non -Residential Uses. No fewer than four (4) parking spaces shall be provided for any non-residential use. 3. Location of Off -Street Parking Areas. a. Residential. Required parking spaces for all dwellings shall be located on the same lot as the dwelling to be served. b. Non-residential. Required parking spaces for all non-residential uses shall be owned by the owner of the building or lot to be served, and shall be located on the same lot, or not more than three hundred (300) feet distance, unless the property is located within those areas defined within the adaptive re -use section of the Code (Chapter 4, Article 5, Section 4). In those areas, required parking spaces may be leased within three hundred (300) feet of the use in which they serve, subject to Board and City Commission approval, and the property shall be posted with signage indicating to patrons the location of the leased parking. B. Table 4-17. Residential and Lodging Uses. I Residential and Lodging Uses I Standard Number of Required Parking Spaces http://www.amlegal.cominxtlgateway.dlllFlorida/boynton/partiiilanddevelopmentregulation... ARTICLE V. MINIMUM OFF-STREET PARKING REQUIREMENTS Page 2 of 3 Building area size is based upon gross floor area (in square feet) unless specifically expressed otherwise. Single-family, duplex dwelling, or mobile home: 21 Efficiency or one (1) -bedroom apartment: 1.51,2 Within mixed use high district: 1.332 Two (2) or more bedroom apartment: 21,2 Within mixed use high district: 1.661'2 Dormitories: 1 per unit Hotel & motel units containing one (1) -bedroom: 1.25 per unit Within mixed use high district: 1 per unit Hotel & motel suite containing two (2) or more bedrooms: 2 per unit Within mixed use high district: 1 per unit Group home (types 1 through 4): 1 per 3 beds Bed & breakfast: 13 Live/work unit: 1 per 2 units4 1 Residential driveways shall satisfy the parking space requirements for single-family detached dwelling units, duplexes, and multi -family dwelling units containing garages, provided such driveways are of sufficient size to meet the parking space requirements of this subsection. A residential driveway of sufficient size shall be provided prior to the issuance of a certificate of occupancy. For all required parking spaces not located within an enclosed garage, the first parking space shall be the minimum size required for a handicap space, exclusive of public or private rights-of-way, and all other required spaces must be dimensioned in accordance with current city standards. All driveways shall be setback at least two (2) feet from interior side and corner side property lines, and maintained and drained so as to prevent nuisance conditions or a danger to the public and/or adjacent property owners. Any expansion to an existing driveway shall require a zoning permit from the Planning and Zoning Division in accordance with the procedures specified in Chapter 2, Article II, Section S.B.; however, any driveway expansion (or similar impervious surface) that is equal to or greater than eight hundred (800) square feet shall require the approval of a land development permit in accordance with Chapter 2, Article III, Section 3. Any work, such as a driveway, proposed within the swale (right-of-way) shall require a permit from the Engineering Division in accordance with the procedures specified in Chapter 2, Article III, Section 4. 2 Guest parking shall be provided at a rate of 0.15 spaces per unit for residential developments consisting of three (3) or more dwelling units. 3 Required parking shall be calculated on the basis of one (1) space per each employee, manager, or owner and one (1) parking space for each guest unit. Newly created parking may be located only in the rear and side yard. http://www.amlegal.cominxtlgateway.dll/Florida/boynton/partiiilanddevelopmentregulation... ARTICLE V. MINIMUM OFF-STREET PARKING REQUIREMENTS Page 3 of 3 4 In addition to the required parking for the residential unit, the city requires that one (1) parking space per two (2) live/work units be provided to meet business activity needs. Parking provided to meet this requirement shall be located on the lot, built into or under the structure, or within three hundred (300) feet of the unit in which the use is located. The distance shall be a straight line measurement from a point on the boundary line of the property of the subject unit to the closest boundary line of the property on which the parking is located. Parking provided to accommodate said space, including driveways of adequate depth in front of the unit's garage, shall not serve as meeting required parking for the unit's residential use. http://www.amlegal.cominxtlgateway.dll/Florida/boynton/partiiilanddevelopmentregulation... 1/8/2015 This is an APPRAISAL REPORT that complies with Standard Rule 2-2(a) of Uniform Standards of Professional Appraisal Practice (USPAP: 2016-2017) (a) The content of an Appraisal Report must be consistent with the intended use of the appraisal and, at a minimum: (i) state the identity of the client and any intended users, by name or type; (ii) state the intended use of the appraisal; (iii) summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal and economic property characteristics relevant to the assignment; (iv) state the real property interest appraised; (v) state the type and definition of value and cite the source of the definition; (vi) state the effective date of the appraisal and the date of the report; (vii) summarize the scope of work used to develop the appraisal; (viii) summarize the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales comparison approach, cost approach, or income approach must be explained; (ix) state the use of the real estate existing as of the date of value and the use of the real estate reflected in the appraisal; (x) when an opinion of highest and best use was developed by the appraiser, summarize the support and rationale for that opinion; (xi) clearly and conspicuously: ■ state all extraordinary assumptions and hypothetical conditions; and ■ state that their use might have affected the assignment results; (xii) include a signed certification in accordance with Standards Rule 2-3. Standards Rule 1-5 When the value opinion to be developed is market value, an appraiser must, if such information is available to the appraiser in the normal course of business: (a) analyze all agreements of sale, options, and listings of the subject property current as of the effective date of the appraisal; and (b) analyze all sales of the subject property that occurred within the three (3) years prior to the effective date of the appraisal. 475.611 Florida Statutes: Definitions. -- (1) As used in this part, the term: (a) "Appraisal" or "appraisal services" means the services provided by certified or licensed appraisers or registered trainee appraisers, and includes: 1. "Appraisal assignment" denotes an engagement for which a person is employed or retained to act, or could be perceived by third parties or the public as acting, as an agent or a disinterested third party in rendering an unbiased analysis, opinion, review, or conclusion relating to the nature, quality, value, or utility of specified interests in, or aspects of, identified real property. 2. "Analysis assignment" denotes appraisal services that relate to the employer's or client's individual needs or investment objectives and includes specialized marketing, financing, and feasibility studies as well as analyses, opinions, and conclusions given in connection with activities such as real estate brokerage, mortgage banking, real estate counseling, or real estate consulting. 3. "Appraisal review assignment" denotes an engagement for which an appraiser is employed or retained to develop and communicate an opinion about the quality of another appraiser's appraisal, appraisal report, or work. An appraisal review may or may not contain the reviewing appraiser's opinion of value. (b) "Appraisal Foundation" or "foundation" means the Appraisal Foundation established on November 20, 1987, as a not-for-profit corporation under the laws of Illinois. (c) "Appraisal report" means any communication, written or oral, of an appraisal, appraisal review, appraisal consulting service, analysis, opinion, or conclusion relating to the nature, quality, value, or utility of a specified interest in, or aspect of, identified real property, and includes any report communicating an appraisal analysis, opinion, or conclusion of value, regardless of title. However, in order to be recognized in a federally related transaction, an appraisal report must be written. (d) "Appraisal review" means the act or process of developing and communicating an opinion about the quality of another appraiser's appraisal, appraisal report, or work. (e) "Appraisal subcommittee" means the designees of the heads of the federal financial institutions regulatory agencies established by the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. ss. 3301 et seq.), as amended. (f) "Appraiser' means any person who is a registered trainee real estate appraiser, licensed real estate appraiser, or a certified real estate appraiser. An appraiser renders a professional service and is a professional within the meaning of s. 5.11(4)(a). (g) "Board" means the Florida Real Estate Appraisal Board established under this section. (h) "Certified general appraiser" means a person who is certified by the department as qualified to issue appraisal reports for any type of real property. (i) "Certified residential appraiser" means a person who is certified by the department as qualified to issue appraisal reports for residential real property of one to four residential units, without regard to transaction value or complexity, or real property as may be authorized by federal regulation. Q) "Department" means the Department of Business and Professional Regulation. Page 1 of 5 Vance Real Estate Service Jesse B. Vance, Jr., MAI, SRA, ASA, MBA Appraiser - Real Estate Analyst - Reviewer - Expert Witness Vance Real Estate Service - 7481 NW 4 Street - Plantation - Florida - 33317 Office: 954.583.2116; Cell: 954.610.2423; Email: vancevalgcomcast.net Web Page: www.vancerealestateservice.com Vance Real Estate Service is a Veteran -Owned Small Business (VOSB) and Florida Certified SDVBE Minority Business Enterprise specializing in personalized real estate valuation services in Florida for over 35 years. Currently registered in "SAM" (U.S. Government System for Award Management — DUNS 826494957). Designated appraisers perforin the appraisal work, no trainees. Jesse B. Vance, Jr., MAI, SRA, ASA, MBA and Claudia Vance, MAI are qualified as expert witnesses for eminent domain, bankruptcies, deficiency judgments, marriage dissolution, and estate valuations. Our firm values most types of real property interests for sale, mortgage loans, litigation and investment reasonably, timely and professionally. As licensed real estate brokers, we perforin most other real property functions. We also do "Valuations for Financial Reporting." PROFESSIONAL QUALIFICATIONS A) PROFESSIONAL DESIGNATIONS/ DEGREES/ LICENSES & CERTIFICATIONS MAI DESIGNATION - APPRAISAL INSTITUTE/Life Member No. 8781 SRA DESIGNATION - APPRAISAL INSTITUTE/Life Member No. 8781 ASA DESIGNATION - AMERICAN SOCIETY OF APPRAISERS (RE -Urban) 4003439 MBA DEGREE - REAL ESTATE MANAGEMENT AND DEVELOPMENT STATE -CERTIFIED GENERAL REAL ESTATE APPRAISER 4RZ-85 (Florida) FLORIDA STATE LICENSED REAL ESTATE BROKER NO. BK. 91050 REGISTERED VETERAN -OWNED SMALL BUSINESS (CCR/Duns 826494957) FLORIDA CERTIFIED SDVBE BUSINESS ENTERPRISE (Minority Business Enterprise - MBE) FLORIDA "D.E.P." APPROVED APPRAISER Currently registered in "SAM" (U.S. Governinent System for Award Management). B) QUALIFIED AS AN EXPERT WITNESS IN REAL ESTATE VALUATION 1. U.S. Court of Appeals, Eleventh Circuit 2. U.S. District Court, Southern District of South Florida 3. U.S. District Court, New Jersey 4. U.S. Bankruptcy Court, Southern District of Florida 5. U.S. Bankruptcy Court, District of New Jersey 6. U.S. Bankruptcy Court, Western (Pittsburgh) Division of Pennsylvania 7. Florida Circuit Courts: Broward, Dade, Patin Beach, Lee, Collier, Martin, and Okeechobee Counties 8. Appraiser on landmark eminent domain cases: TESSLER, NESS TRAILER PARK, PATEL, SIMPSON v. FILLICHIO, RUBANO, PALM BEACH COUNTY (FL) vs. COVE CLUB INVESTORS, LTD. C) EXPERIENCE Over thirty-five (35) years appraising and analyzing real property interests in South Florida. Partial list: RESIDENCES, RESTAURANTS/BARS, APARTMENT BUILDINGS, OFFICE BUILDINGS HOTELS/MOTELS, CHURCHES, CONDOMINIUMS/COOPS, HOSPITALS & NURSING HOMES, VACANT LAND, GOLF COURSES, GOLF CLUBS, GASOLINE SERVICE STATIONS, MARINAS, TRAILER PARKS, SHOPPING CENTERS, BANKS/THRIFT INSTITUTIONS, BOWLING ALLEYS, P.U.D.'S, INDUSTRIAL BUILDINGS, TIME-SHARE DEVELOPMENTS, ROCK PITS, SCHOOLS, AGRICULTURAL PROPERTIES, WATER MANAGEMENT DISTRICT, MARKETABILITY, FEASIBILITY ANALYSES, INVESTMENT ANALYSES, AUTO SALES FACILITIES, LEASE VALUATIONS, TAX & ASSESSMENT APPEALS, CONDEMNATION, EXPERT WITNESS (Member National Forensic Center), BUSINESS ENTERPRISE VALUATIONS (BEV), (VFR) VALUATION FOR FINANCIAL REPORTING, AVIGATION & CLEARANCE EASEMENTS, ESTATES, DIVORCES, PLANNING/LAND USE STUDIES, HIGHEST & BEST USE ANALYSES, DEPRECIATION ANALYSES, COMPONENT APPRAISALS, ENVIRONMENTALLY SENSITIVE LAND, CONTAMINATED PROPERTIES, SUGARCANE & TURFGRASS LAND, DAY CARE CENTERS, SELF -STORAGE FACILITIES, FUNERAL HOMES, ANIMAL HOSPITALS, SUBMERGED LAND, CITY CENTERS, etc. Page 2 of 5 D) PARTIAL LIST OF CLIENTS PRIVATE INDIVIDUALS AND CORPORATIONS, ATTORNEYS, ACCOUNTANTS, TRUST DEPARTMENTS, COMMERCIAL BANKS: Wells Fargo; BankAtlantic; SunTrust; American National Bank; Landmark Bank; City National Bank; BankUnited; Gateway American Bank; State Farrn Bank; Englewood Bank & Trust; SAVINGS & LOANS, INSURANCE COMPANIES, REAL ESTATE INVESTMENT TRUSTS, & REAL ESTATE TRANSFER COMPANIES, TITLE INSURANCE COMPANIES; FLORIDA CITIES: FORT LAUDERDALE, PLANTATION, COOPER CITY, TAMARAC, LAUDERHILL, BOCA RATON, DEERFIELD BEACH, OAKLAND PARK, WILTON MANORS, HOLLYWOOD, WEST PALM BEACH, DELRAY BEACH, HALLANDALE, PEMBROKE PINES, COOPER CITY, TOWN OF DAVIE, TOWN OF SOUTHWEST RANCHES, MIRAMAR. FLORIDA COUNTIES: BROWARD, PALM BEACH, COLLIER, OKEECHOBEE; BROWARD COUNTY BOARD OF COUNTY COMMISSIONERS; OKEECHOBEE BOARD OF COUNTY COMMISSIONERS. SCHOOL BOARD OF BROWARD COUNTY, FLORIDA, BROWARD COUNTY HOUSING AUTHORITY, STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION (DOT); STATE OF FLORIDA DIVISION OF GENERAL SERVICES(GSA); N. BROWARD GENERAL HOSPITAL DISTRICT; STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION (Approved Vendor);U_S. TREASURY DEPARTMENT (General Counsel, I.R.S.); U.S. MARSHAL'S SERVICE —U.S. ATTORNEY'S OFFICE CENTRAL DIVISION —U.S. Dept. of Justice; VETERANS ADMINISTRATION E) EDUCATIONAL BACKGROUND - (Partial List) BACHELOR OF ARTS - Earlham College, Richmond, Indiana (1954) MBA (Nova University) - Real Estate Management & Development (National Dean's List 1991) Course 1 (AIREA) - Basic Principles of Appraising Course 2 (AIREA) - Urban Property Valuation (Income) Course 4 (AIREA) - Condemnation Appraising Course 6 (AIREA) - Income Capitalization & Analysis Course 101 (SREA) - Introduction to Appraising Course 201 (SREA) - Income Property Valuation, Theory Course 202 (SREA) - Applied Income Property Valuation Course 301 (SREA) - Applications/Appraisal Analysis Symposium (SREA) - Market Analysis, 1978, Virginia Symposium (SREA) - Market Analysis, 1979, Arizona Symposium (SREA) - Market Analysis, 1980, South Carolina Symposium (SREA) - Market Analysis, 1981, Tennessee Symposium (SREA) - Market Analysis, 1982, New Mexico Symposium (SREA) - Market Analysis, 1983, Pennsylvania Symposium (SREA) - Market Analysis, 1984, Georgia Symposium (SREA) - Market Analysis, 1985, Vancouver, B.C. Symposium (SREA) - Market Analysis, 1986, New Jersey Clinic (SREA) - #201 Instructor, 1987, U. of Illinois Clinic (SREA) - #201 Instructor, 1988, Illinois Seminar (SREA) - Professional Practice, 1988, Florida Symposium (SREA) - Market Analysis, 1988, California Symposium (SREA) - Market Analysis, 1989, Minnesota MBA Graduate School Courses: 1990 — 1991 Successfullv completed the followine eraduate school courses - "Regulation of Real Estate Development" - "Real Properties Management" - "Legal Issues In Real Estate" - "Market Analysis and Site Selection" - "Organizational Behavior and Management"' - "Human Resource Management" - "Real Estate Economics" - "R. E. Finance: Instruments, Institutions & Investment Analysis" - "Urban Infrastructure & Environmental Analysis" - "Real Estate Accounting" - "Marketing Management for Real Estate" - "Commercial Real Estate Lending" - "Construction Technology and the Building Development Process" SEMINAR (AI) - Cost Approach (1992/Boston) SEMINAR (AI) - Rates & Ratios (1992/Boston) SEMINAR (AI) - International Appraising (1992/Boston) SEMINAR (AI) - Litigation Valuation/Mock Trial (1993) SEMINAR (AI) - ADA ACT (1993/Reno) SEMINAR (AI) - Hotel Valuation (1993) SEMINAR (AI) - Income Capitalization, Methods (1993) SEMINAR (AI) - Powerlines/Electromagnetic Radiation (1994) SEMINAR (AI) - Verifying Market Data (1994) SEMINAR (AI) - Market Studies for Appraisals (1994) SEMINAR (AI) - Florida Appraiser Core Law (USPAP/1994) Page 3 of 5 E)EDUCATIONAL BACKGROUND - (Partial List, continued) SEMINAR (AI) - Limited Appraisals & Reports (USPAP/1994) SEMINAR (AI) - Public Safety & Property Values (1995) SEMINAR (AI) - Outparcel Valuation (1995) SEMINAR (AI) - Computer Technology Video Conference (1995) SEMINAR (AI) - The Internet & the Appraiser (1996) SEMINAR (AI) - Florida Commercial Construction (1996) SEMINAR (AI) - Real Property Rights in Florida (1996) COURSE (AI) - USPAP & Florida Real Estate Core Law (1996) SEMINAR (AI) - Valuation of Trees (199 7) 3 -DAY COURSE - Environmental Permitting/Mitigation/Mitigation Banking/Contamination Risk Management- Liability/Wetlands/Hazardous Wastes/LenderLiability (1997/Marco Beach. FL) SEMINAR (AI) - Valuation of Transferable Development Rights [TDR's] (1997) COURSE (AI) - Standards of Professional Practice, Part C, 15 hour Course #430 (1997) SEMINAR (AI) - Non -Conforming Uses (1998) SEMINAR (AI) - The Impact of Contamination on Real Estate Value (1998) COURSE (AI) - USPAP & Florida Real Estate Core Law (1998) SEMINAR (AI) - Econometrics/Statistical Valuation Methods (1999) COURSE (AI) - 14 Hour (2 -day) Advanced Spreadsheet Modeling for Valuation Applications SEMINAR (AI) - Globalization of Real Estate/What U.S. Appraisers Need to Know (1999) SEMINAR (AI) - The Role of the Appraiser in Alternative Dispute Resolution (Mediation/Arbitration) (1999) SEMINAR (AI) - Technology Forum Part II/Intermediate (1999) SEMINAR (AI) - Client Satisfaction/Retention/Development (1999) SEMINAR (AI) - Attacking and Defending an Appraisal (1999) SEMINAR (AI) - Federal Appraisal Requirements ("Yellow Book') (2000) SEMINAR (AI) - Regression Analysis in Appraisal Practice: Concepts & Applications (2000) SEMINAR (AI) - Analyzing Income Producing Properties (2000) SEMINAR (ATIF) - 1031 Tax Deferred Exchanges (2000) COURSE (AI) - USPAP & Florida Real Estate Core Law (2000) SEMINAR (AI) - Mediation & Alternate Dispute Resolution Seminar (2001) SEMINAR (AI) - State of the Appraisal Profession (2001) 2 -Day SEMINAR - Eminent Domain, by CLE International, Tampa, Florida (2001) SEMINAR (AI) - Ad Valorem Assessment Process in Florida (2002) SEMINAR (AI) - Role of Real Estate Appraisers in Bankruptcy Proceedings (2002) SEMINAR (AI) - Appraisers & the Gramm -Leach -Bliley Federal Privacy Act (2002) SEMINAR (AI) - How to Appraise the Ugly House (2002) COURSE (AI) - 2 -Day Course #430, Standards of Professional Practice, Part C (2002) SEMINAR (AI) - Market Trends for 2003 (2003) SEMINAR (AI) - Update on Code of Professional Ethics (2003) PANEL (AI) - Moderator "Industry, Consumer & Congressional Views on Predatory Lending" D.C. (2003) SEMINAR (AI) - Florida State Law for Real Estate Appraisers (2003) SEMINAR (AI) - Appraisal Agreements (2003) SEMINAR (AI) - Analyzing Distressed Real Estate (2004) SEMINAR (AI) - Valuation for Financial Reporting Purposes (2004) SEMINAR (AI) - 7 Hour National USPAP Update Course #1400 (2004) SEMINAR (AI) - Inverse Condemnation (2004) SEMINAR (AI) - Appraiser Independence in the Loan Process (2004) SUMMIT (AI) - Moderator at 2 -day Appraisal Summit in Washington, D.C. (12/2004) SEMINAR (AI) - Loss Prevention Program for Real Estate Appraisers (2005) SEMINAR (AI) - Valuation of Wetlands (7/2005) SEMINAR (AI) - Tri -County Residential Symposium (8/2005) SEMINAR (AI) - "Cool Tools" Internet Resources and Use for Valuation (2/2006) SEMINAR (AI) - FREAB 7 -Hour National USPAP Update (5/2006) SEMINAR (AI) - FREAB 3 -Hour Florida State Law for Real Estate Appraisers (5/2006) SEMINAR (AI) - USPAP Scope of Work & New Requirements (8/2006) SEMINAR (AI) - USPAP Reappraising, Readdressing & Reassigning Appraisal Reports (2/2007) SEMINAR (AI) - Al Summary Appraisal Report/Residential (4/07) COURSE (Fla.) -14-Hour Continuing Education (including 3 -Hour Florida Core Law) (7/2007) SEMINAR (AI) - Real Estate Fraud: Appraisers Beware! (8/2007) SEMINAR (AI) - Florida Law for Real Estate Appraisers (11/2007) COURSE (AI) - Business Practices and Ethics — 8 hours (12/2007) SEMINAR (AI) - Supervisor Trainee Roles and Rules (2/2008) SEMINAR (AI) -7 Hour National USPAP (4/2008) SEMINAR (AI) - USPAP Hypothetical Conditions & Extraordinary Assumptions (5/2008) SEMINAR (AI) - Litigation Skills for the Appraiser — 7 -Hour Seminar (9/2008) SEMINAR (AI) - Public Sector Appraising (2/2009) Page 4 of 5 E) EDUCATIONAL BACKGROUND - (Partial List, continued) WEBINAR (AI) - Develop an Effective Marketing Plan (3/2009) SEMINAR (AI) - Inspecting the Residential "Green House" (4/2009) SEMINAR (AI) - Property Tax Assessment (5/2010) SEMINAR (AI) - Supervisor Trainee Roles and Rules (7/2010) SEMINAR (AI) - Florida Law for Real Estate Appraisers (7/2010) SEMINAR (AI) - 7 -Hour Introduction to Valuation for Financial Reporting — Chicago (5/2009) SEMINAR (AI) - Government Regulations & Their Effect on R.E. Appraising (8/2009) SEMINAR (AI) - R.E.Market: How We Got Here, Where We Are, Where We're Going (10/2009) SEMINAR (AI) - 7 Hour National USPAP Update Course (10/1/2010) COURSE (AI) - 7 Hour Introduction to Conservation Easement Valuation (12/10/2010) SEMINAR (AI) - The Real Estate Market (2/18/2011) COURSE (AI) - 16 Hours Uniform Appraisal Standards for Federal Land Acquisitions ("Yellow Boob') (2/25-26/2011) WEBINAR (AI) - Real Estate Industry Perspectives on Lease Accounting (4/7/2011) COURSE (AI) - 15 Hour Appraisal Curriculum Overview (5/19-20/2011) WEBINAR (AI) - 2 -hour Investment Property Accounting Standards (6/8/2011) SEMINAR (AI) - 3 Hour Spotlight on USPAP — Agreement for Services (7/15/2011) COURSE (AI) - 14 Hours (2 -day) Advanced Excel Spreadsheet Modeling for Valuation Applications (9/22 & 9/23/2011) SEMINAR (AI) - Trial Components (11/4/11) SEMINAR (AI) - Lessons from the Old Economy Working in the New (1/20/2012) 7 -Hour USPAP - National USPAP Update (3/9/2012) 3 -Hour Fla. Law - State Law Update (3/9/2012) SEMINAR (AI) - Appraisal Review for General Appraisers (4/12/2012) SEMINAR (AI) - Land Valuation (4/20/2012) SEMINAR (AI) - The Valuation of Warehouses (6/22/2012) SEMINAR (AI) - Town Hall Meeting: 2012 Appraisal Institute Forum (7/12/2012) SEMINAR (AI) - IRS Valuation (7/19/2012) SEMINAR (AI) - 7 Hour Business Practices and Ethics Course (12/7/2012) SEMINAR (AI) - Real Estate Forecast 2013 (1/25/2013) COURSE (AI) - 7 Hour Advanced Marketability Studies (5/6/2013) SEMINAR (AI) - Developing a Supportable Workfile (11/15/2013) SEMINAR (AI) - Florida Appraisal Law Course (2/7/2014) SEMINAR (AI) - Liability Issues for Appraisers performing Litigation & Non -Lending Work (2/24/2014) COURSE (AI) - 7 Hour National USPAP Update Course (4/25/2014) SEMINAR (AI) - Economic Conditions (5/16/2014) SEMINAR (AI) - Fundamentals of Going Concerns (7/16/2014) SEMINAR (AI) - Litigation Assignments for Residential Appraisers (7/24/2014) SEMINAR (AI) - Economic Engines of Miami -Dade County, Florida (1/23/2015) SEMINAR (AI) - Economic Engines Driving Broward County, Florida (5/15/2015) 3 -Hour Fla.Law - Florida Real Estate Broker 14 -hour Continuing Education Course (incl. 3 hour core law) with exam (9/2015) SEMINAR (AI) - Drone Technology & its Effect on Real Estate Valuations (11/2015) SEMINAR (AI) - Loss Prevention for Real Estate Appraisers (1/22/2016) COURSE (AI) - 7 -Hour National USPAP Update Course (4/22/2016) SEMINAR (AI) - 3 -Hour Florida Appraisal Law (4/22/2016) SEMINAR (AI) - 4 -Hour Appraisals in the Banking Environment (5/6/2016) SEMINAR (AI) - Appraising the Tough One: Mixed Use Properties (8/19/2016) SEMINAR (AI) - 4 -Hour Business Practices & Ethics (12/02/2016) 5 -Year Requirement WEBINAR (AI) - 2 -Hour Yellow Book Changes — Overview for Appraisers (1/11/2017) SEMINAR (AI) - 3 -Hours Economic Engines Driving Broward County in 2017 (1/27/2017) COURSE (AI) - 7 -Hours: Introduction to Green Buildings Principles & Concepts (2/24/2017) Page 5 of 5 F) APPRAISAL TEACHING EXPERIENCE Licensed by the Florida Department of Education to Teach (Certificate No. 275236). Authored and taught Residential and Commercial Real Estate Appraisal Courses for Broward County Adult Education Program. Taught Course 101 - Society of Real Estate Appraisers. Taught Course 201 - Society of Real Estate Appraisers. Taught Appraisal Seminars - Board of Realtors, ASA, SREA, and Al (Appraisal Institute). Adjunct Professor, University of Florida Division of Continuing Education: (taught Course 2, "Real Estate Principles and Practices" to prospective Florida Real Estate Brokers). G) PROFESSIONAL OFFICES HELD/AWARDS NATIONAL B.O.D. MEMBER - BOARD OF DIRECTORS of APPRAISAL INSTITUTE (2006- 2008) AWARD - Appraisal Institute `NATIONAL PRESIDENTS AWARD" 2008 AWARD - Appraisal Institute "LIFETIME ACHIEVEMENT AWARD" 2011 For "high ethical standards, contributions to the Appraisal Institute, Community and Appraisal Profession for at least 20 years." CHAIR - REGION X - All of Florida - Appraisal Institute (2008) VICE -CHAIR - REGION X - All of Florida - Appraisal Institute (2007) THIRD DIRECTOR - REGION X - All of Florida - Appraisal Institute (2006) FINANCE OFFICER - REGION X — All of Florida — Appraisal Institute (2006) PRESIDENT - BROWARD COUNTY, SOCIETY OF REAL ESTATE APPRAISERS PRESIDENT - BROWARD COUNTY, AMERICAN SOCIETY OF APPRAISERS CHAIR - FLA. STATE GOVERNMENT RELATIONS SUBCOMMITTEE OF Al CHAIR - FLA. STATE LEGISLATION & REGULATION SUBCOMMITTEE OF Al G) PROFESSIONAL OFFICES HELD/AWARDS CHAIR - FLORIDA REALTORS COMMITTEE ON COMMITTEE REFORMS CHAIR - EDUCATION COMMITTEE, FT. LAUDERDALE CHAPTER Al CHAIR - CANDIDATES GUIDANCE COMMITTEE, FT .LAUDERDALE CHAPTER Al CHAIR - NATIONAL Valuation for Financial Reporting PROJECT TEAM OF Al VICE CHAIR & MEMBER - NATIONAL GOVERNMENT RELATIONS COMMITTEE OF Al (15 Years) MEMBER - NATIONAL LONG RANGE PLANNING COMMITTEE OF Al MEMBER - NATIONAL PUBLIC AFFAIRS COMMITTEE OF Al DIRECTOR - REGION X (Florida) Appraisal Institute MEMBER - REGION X (FLORIDA) ETHICS AND COUNSELING PANEL DIRECTOR - BROWARD COUNTY, FLORIDA SOCIETY OF REAL ESTATE APPRAISERS DIRECTOR - SOUTH FLORIDA CHAPTER AMERICAN SOCIETY OF APPRAISERS MEMBER - NATIONAL EXPERIENCE REVIEW PANEL MEMBER OF Al SPECIAL MASTER - BROWARD COUNTY BOARD OF TAX ADJUSTMENT COMMISSIONER - 17TH JUDICIAL CIRCUIT COURT, Broward County, FL MEMBER - 2013 APPRAISAL INSTITUTE NATIONAL BUSVAL PROJECT TEAM H) PROFESSIONAL PUBLICATIONS & PRESENTATIONS Wrote and taught a basic Residential Appraisal Course for the Broward County Adult Education Div. of the Dept. of Education; Wrote and taught an Income Appraisal Course for the Broward County Adult Education Division of the Department of Education; Co-authored and taught an appraisal course on Mortgage -Equity Capitalization for the American Society of Appraisers. Authored and taught a Florida State and Appraisal Institute 3 -hour accredited course in "The Legislation, Regulation and Appraisal of Real Property Rights in Florida September 7, 1996. Presentation on "Gramm -Leach -Bliley" Federal Privacy Act of 1999 for South Florida Chapter of American Society of Appraisers on October 24, 2 00 1. Presented 3 -hour Florida CEU-credit seminar on "Appraisers and the Gramm -Leach -Bliley Act' before the South Florida Chapter of the Appraisal Institute on July 27, 2002. Presenter at 6.5 Hour CLE -credit Attorney Seminar on Florida Eminent Domain, "Valuation and Damage Issues" February 2, 2006, Fort Lauderdale, Florida P CIVIC INVOLVEMENT MEMBER OF ROTARY INTERNATIONAL / PAUL HARRIS FELLOW MEMBER OF THE GREATER FORT LAUDERDALE OPERA GUILD MEMBER FLORIDA PHILHARMONIC BROWARD TRUSTEES MEMBER OF THE BROWARD COUNTY LIBRARY SUPPORT GROUP ("BYBLOS") MEMBER CIRCLE OF FRIENDS — NOVA SOUTHEASTERN LIBRARY FOUNDATION MEMBER NOVA SOUTHEASTERN UNIVERSITY ALUMNI ASSOCIATION MEMBER OF THE FORT LAUDERDALE HISTORICAL SOCIETY MEMBER OF THE BROWARD COUNTY MUSEUM OF THE ARTS MEMBER OF THE FORT LAUDERDALE / BROWARD COUNTY CHAMBER OF COMMERCE MEMBER OF THE BETTER BUSINESS BUREAU OF SOUTH FLORIDA LIFETIME HONORARY MEMBER FLORIDA SHERIFF'S ASSOCIATION MEMBER NATIONAL & FT. LAUDERDALE COUNCILS U.S. NAVY LEAGUE U.S. ARMY VETERAN WWII (RA 1721268 1) - HONORABLE DISCHARGE 1949 I of 4 Vance Beal Estate Service Claudia Vance, MAI Appraiser - Real Estate Analyst Reviewer Vance Real Estate Service - 7481 NW 4 Street Plantation - FL - 33317 Office: 954.583.2116 Cell: 954.647.7148 Email: vancevalgatt.net Web Site: www.vancerealestateservice.com Vance Real Estate Service is a Veteran -Owned Small Business (VOSB) and Florida Certified SDVBE Minority Business Enterprise specializing in personalized real estate valuation services in Florida for over 35 years. Designated appraisers perfonm the appraisal work, no trainees. Our appraisals are used for financial/ mortgage loan purposes from large mixed use complexes to small owner- occupied properties. We have the qualifications for appraisals submitted to SBA. Jesse B. Vance, Jr., MAI, SRA, ASA and Claudia Vance, MAI are qualified as expert witnesses for eminent domain, deficiency judgments, marriage dissolution, and estates. Our fine values most types of real property interests, timely, professionally, and at competitive costs. PROFESSIONAL QUALIFICATIONS A) PROFESSIONAL DESIGNATIONS/ LICENSES MAI Designation - APPRAISAL INSTITUTE No. 9451 State -Certified General Real Estate Appraiser No. RZ-173 Florida State Licensed Real Estate Broker No. BK 0161305 VOSB Veteran -Owned Small Business (CCR/Duns 826494957) B) WORK HISTORY 1983 - Current Vice President - Vance Real Estate Service 1981-1983 President - The Appraisal Company, Fort Lauderdale, Florida 1979-1981 Staff Appraiser - Real Property Analysts, Inc., Fort Lauderdale, Florida 1976-1980 REALTOR -Associate - The Atwood Corporation, Fort Lauderdale, Florida 1973-1975 Teacher of Secondary Language Arts in the Jefferson Parish School in Louisiana C) QUALIFIED AS AN EXPERT WITNESS IN REAL ESTATE VALUATION U.S. Bankruptcy Court, Southern District of Florida Florida Circuit Court: Broward County D) APPRAISER SPECIAL MAGISTRATE FOR THE BROWARD CO VALUE ADJUSTMENT BOARD 2002-2010 E) EXPERIENCE: 35+years appraising and analyzing real property interests in South Florida. Partial list of real vroverty types valued: High value residences, Condominiums/ Co-operatives, Office, Industrial, Multi -fainly, Restaurants/ bars, Auto dealerships, City Centers, Hotels/ imotels, Houses of worship, Schools, Child care centers, Self -storage, Funeral home, Animal Hospital, Mixed use, Nursing homes, Gas sales stations, Marinas, Mobile home parks, Shopping centers, Country clubs/ golf courses, Financial institutions, Bowling centers, Vacant land, Agricultural properties, Environmentally sensitive land Tvves of Reports: Market Value, Eminent Domain, Marketability, Feasibility, Highest and Best Use, Investment Analyses, Partial Interests, Easement Valuations, Estate planning, Marriage dissolution, Land use studies, Damage/ Contamination studies 2 of 4 F) PARTIAL LIST OF CLIENTS — PRIVATE: Individuals, Corporations, Attorneys, Accountants, Habitat for Hu vanity, Seminole Tribe of Florida COMMERCIAL BANKS: Wells Fargo; BankAtlantic; SunTrust; Citigroup; Space Coast Credit Union; State Fann Bank; Florida Shores Bank; American National Bank; Landmark Bank; City National Bank; Englewood Bank & Trust SAVINGS & LOANS, INSURANCE COMPANIES, REAL ESTATE INVESTMENT TRUSTS, & REAL ESTATE TRANSFER COMPANIES, TITLE INSURANCE COMPANIES FLORIDA CITIES: Fort Lauderdale, Plantation, Cooper City, Deerfield Beach, Tamarac, Oakland Park, Wilton Manors, Davie, Hollywood, Pembroke Pines, Hallandale Beach, Lauderhill, Southwest Ranches, Miramar, Boca Raton, Boynton Beach, West Patin Beach, Delray Beach FLORIDA COUNTIES and AGENCIES: Broward, Pahn Beach, Broward County Board of County Cormnissioners, School Board of Broward County, Broward County Housing Authority STATE OF FLORIDA Department of Transportation (FDOT), Department of Environmental Protection U.S. Department of Veterans Affairs, U.S. Department of Treasury (IRS), U.S Marshall's Service, U.S. Attorney G) EDUCATIONAL BACKGROUND Academic: Bachelor of Arts Degree — University of New Orleans, New Orleans, LA — Major: English Professional: Course 1-A (AIREA) - Introduction to Appraising Real Property, 1977, Passed Exam Course 1-B (AIREA) - Capitalization Theory and Techniques, 1978, Passed Exam Course VIII (AIREA) - Residential Appraising, 1978, Passed Exam Course SPP (AI) - Standards of Professional Practice, 1992, Passed Exam Course 2-1 (AIREA) - Case Studies, 1987, Passed Exam Course 2-2 (AIREA) - Report Writing, 1987, Passed Exam Course R-2 (SREA) - Report Writing, 1978, Passed Exam Course 202 (SREA) - Applied Income Property Valuation, 1983, Passed Exam Course 301 (SREA) - Applications/Appraisal Analysis, 1984, No Exam Course SPP (SREA) - Standards of Professional Practice, 1989, No Exam Symposium (SREA) - Market Analysis, 1983, Philadelphia Symposium (SREA) - Market Analysis, 1984, Atlanta Symposium (SREA) - Market Analysis, 1985, Vancouver Symposium (SREA) - Market Analysis, 1986, Atlantic City Symposium (SREA) - Market Analysis, 1988, Los Angeles SEMINAR (AI) - Cost Approach (1992/Boston) SEMINAR (AI) - Rates & Ratios (1992/Boston) SEMINAR (AI) - International Appraising (1992/Boston) SEMINAR (AI) - Litigation Valuation/Mock Trial (1993) SEMINAR (AI) - ADA ACT (1993/Reno) SEMINAR (AI) - Hotel Valuation (1993) SEMINAR (AI) - Income Capitalization, Methods (1993) SEMINAR (AI) - Powerlines/Electromagnetic Radiation (1994) SEMINAR (AI) - Verifying Market Data (1994) SEMINAR (AI) - Market Studies for Appraisals (1994) SEMINAR (AI) - Florida Appraiser Core Law (USPAP/1994) SEMINAR (AI) - Limited Appraisals & Reports (USPAP/1994) SEMINAR (AI) - Public Safety & Property Values (1995) SEMINAR (AI) - Outparcel Valuation (1995) SEMINAR (AI) - Computer Technology Video Conference (1995) SEMINAR (AI) - The Internet & the Appraiser (1996) SEMINAR (AI) - Florida Commercial Construction (1996) SEMINAR (AI) - 1996 Data Exchange (1996) SEMINAR (AI) - Real Property Rights in Florida (1996) COURSE (AI) - USPAP & Florida Real Estate Core Law (1996) SEMINAR (AI) - Valuation of Trees (1997) of 4 G) EDUCATIONAL BACKGROUND (Continued) SEMINAR (AI) - Valuation of Transferable Development Rights [TDR's] (1997) COURSE (AI) - Standards of Professional Practice, Part C, 15 hour Course #430 (1997) SEMINAR (AI) - Non -Conforming Uses (1998) SEMINAR (AI) - The Impact of Contamination on Real Estate Value (1998) COURSE (AI) - USPAP & Florida Real Estate Core Law (1998) SEMINAR (AI) - Econometrics/Statistical Valuation Methods (1999) SEMINAR (AI) - Globalization of Real Estate/What U.S. Appraisers Need to Know (1999) SEMINAR (AI) - The Role of the Appraiser in Alternative Dispute Resolution (Mediation/Arbitration) (1999) SEMINAR (AI) - Technology Forum Part II/Intermediate (1999) SEMINAR (AI) - Client Satisfaction/Retention/Development (1999) SEMINAR (AI) - Attacking and Defending an Appraisal (1999) SEMINAR (AI) - Federal Appraisal Requirements (2000) SEMINAR (AI) - Regression Analysis in Appraisal Practice: Concepts & Applications (2000) SEMINAR (AI) - Analyzing Income Producing Properties (2000) COURSE (AI) - USPAP & Florida Real Estate Core Law (2000) SEMINAR (AI) - Mediation & Alternate Dispute Resolution Seminar (2001) SEMINAR (AI) - State of the Appraisal Profession (2001) SEMINAR (AI) - Ad Valorem Assessment Process in Florida (2002) SEMINAR (AI) - Role of Real Estate Appraisers in Bankruptcy Proceedings (2002) SEMINAR (AI) - Appraisers & the Gramm -Leach -Bliley Federal Privacy Act (2002) SEMINAR (AI) - How to Appraise the Ugly House (2002) COURSE (AI) - 2 -Day Course #430, Standards of Professional Practice, Part C (2002) SEMINAR (AI) - Market Trends for 2003 (2003) SEMINAR (AI) - Update on Code of Professional Ethics (2003) PANEL (AI) - Moderator "Industry, Consumer & Congressional Views on Predatory Lending" D.C. (2003) SEMINAR (AI) - Florida State Law for Real Estate Appraisers (2003) SEMINAR (AI) - Appraisal Agreements (2003) SEMINAR (AI) - Analyzing Distressed Real Estate (2004) SEMINAR (AI) - Valuation for Financial Reporting Purposes (2004) SEMINAR (AI) - National USPAP Course (2004) SEMINAR (AI) - Inverse Condemnation (2004) SEMINAR (AI) - Loss Prevention (2005) SEMINAR (AI) - Single Family Fraud Awareness (2005) SEMINAR (AI) - Guide to the new URAR form (2005) SEMINAR (AI) - Technologies for Real Estate Appraisers (2006) SEMINAR (AI) - The Appraiser's Role in New Urbanism (2006) SEMINAR (AI) - National USPAP Update (2006) SEMINAR (AI) - Florida State Law for Real Estate Appraisers (2006) SEMINAR (AI) - Scope of Work and the New USPAP Requirements (2006) SEMINAR (AI) - Energy Star and the Appraisal Process (2006) SEMINAR (AI) - Reappraising, Readdressing, and Reassigning Appraisals (2007) SEMINAR (AI) - Real Estate Fraud (2007) SEMINAR (AI) - Forecasting Revenue (2007) SEMINAR (AI) - Florida Law for Real Estate Appraisers (2007) COURSE (AI) - Business Practice and Ethics #420 (2007) SEMINAR (AI) - Supervisor — Trainee Roles and Rules (2008) COURSE (AI) - 7 Hour National USPAP Update #400 (2008) SEMINAR (AI) - Hypothetical Conditions and Assumptions (2008) SEMINAR (AI) - Real Estate Economy (2008) SEMINAR (AI) - Public Sector Appraising (2009) SEMINAR (AI) - Inspecting the residential "green" house (2009) WEBINAR (AI) - Value for Financial Reporting (2009) SEMINAR (AI) - The Real Estate Market in 2009 SEMINAR (AI) - New Government Regulations (2009) SEMINAR (AI) -Property Tax Assessment (2010) SEMINAR (AI) -7 Hour National USPAP (2010) SEMINAR (AI) - Florida Law for Real Estate Appraisers (2010) SEMINAR (AI) - Supervisor/ Trainee Roles and Rules (2010) SEMINAR (AI) - The Real Estate Market (2011) SEMINAR (AI) - Uniform Appraisal Standards for Federal Land Acquisitions- "Yellow Book" (2011) COURSE (AI) - 15 Hour Appraisal Curriculum Overview (2011) SEMINAR (AI) - Spotlight on USPAP — Agreement for Services (2011) SEMINAR (AI) - Trial Components (2011) 4 of 4 G) EDUCATIONAL BACKGROUND (Continued) SEMINAR (AI) - Lessons from the Old Economy Working in the New (2012) SEMINAR (AI) - Appraisal Review for General Appraisals (2012) COURSE (AI) - National USPAP Update (2012) SEMINAR (AI) - Florida Law (2012) SEMINAR (AI) - Land Valuation (2012) SEMINAR (AI) - Valuation of Warehouses (2012) SEMINAR (AI) - IRS Valuation (2012) SEMINAR (AI) - Business Practices and Ethics (2012) SEMINAR (AI) - Real Estate Forecast (2013) SEMINAR (AI) - Advanced Marketability Studies (2013) SEMINAR (AI) - Developing a Supportable Workfile (2013) SEMINAR (AI) - Florida Appraisal Law (2014) SEMINAR (AI) - Liability Issues for Appraisers performing Litigation & Non -Lending Work (2014) COURSE (AI) -7 Hour National USPAP Update Course (2014) SEMINAR (AI) -Florida Law (2014) SEMINAR (AI) - New Real Estate Economy (2014) SEMINAR (AI) - Economic Engines of Miami -Date County (2015) SEMINAR (AI) - Economic Engines of Broward County (2015) SEMINAR (AI) - Tightening the Appraisal (2015) SEMINAR (AI) - Evaluating Commercial Construction (2015) SEMINAR (AI) - Drone Technology (2015) SEMINAR (AI) - Loss Prevention for Appraisers (2016) COURSE (AI) - 7 Hour National USPAP Update (2016) SEMINAR (AI) - Florida Law (2016) SEMINAR (AI) - Redefining the Appraisal & Its Role in an Evolving Banking Environment (2016) H) PROFESSIONAL INVOLVEMENT Region X Representative of the Appraisal Institute 2006 — 2009 President of the South Florida Chapter of the Appraisal Institute - 2003 First Vice -President of the South Florida Chapter of the Appraisal Institute -2002 Second Vice -President of the South Florida Chapter of the Appraisal Institute -2001 Secretary of the South Florida Chapter of the Appraisal Institute -2000 Treasurer of the South Florida Chapter of the Appraisal Institute - 1999 Chair of the Education Committee of the S. Florida Chapter of the Appraisal Institute - 1995, 1996, 1997, 1998, 2007- 2016 Chair of the University Relations Committee of the South Florida Chapter of the Appraisal Institute - 2006 Director of the South Florida Chapter of the Appraisal Institute 1996 - 1998 Member of Region X (Florida) Ethics and Counseling Panel —Al Graduate of the Florida REALTORS Institute (GRI) Director of the Florida Association of REALTORS (FAR) - 1981 Committee Member of the Florida Association of REALTORS, Education Committee 1980 & 1981 Chairman of the Education Committee of the Fort Lauderdale REALTORS - 1981 and 1982; Member 1978, 1979, 1980 Member of the Long Range Planning and Awards Committees of the Fort Lauderdale REALTORS Instructor for the Investment Division of the Fort Lauderdale REALTORS D PROFESSIONAL PUBLICATIONS & PRESENTATION Prepared and taught Mastering Real Estate Mathematics at the Fort Lauderdale Area Board of REALTORS Prepared and taught A Guide to Researching Real Estate Information in Broward County and Working Through the Basic Approaches to Market Value, Fort Lauderdale Area Board of REALTORS J) CIVIC INVOLVEMENT Member of the Navy League of the United States — Fort Lauderdale Council Lifetime Honorary Member- Florida Sheriff s Association Member of Zeta Tau Alpha Alumnae Fraternity ATTACHMENT III ATTACHMENT IV PURCHASE AND SALE AGREEMENT This Purchase and Sale Agreement (hereinafter "Agreement") is made and entered into as of the Effective Date (hereinafter defined), by and between BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, a public agency created pursuant to Chapter 163, Part III, of the Florida Statutes (hereinafter "PURCHASER") and LARANN LAND INVESTMENTS, L,LC, a Florida Vy_oToud;c_ Vy_ _'by,V,yd; _g;p_oTop C ra (hereinafter "SELLER"). In consideration of the mutual covenants and agreements herein set forth, the Parties hereto agree as follows: 1. PURCHASE AND SALE/PROPERTY. SELLER agrees to sell and convey to PURCHASER and PURCHASER agrees to purchase and acquire from SELLER, on the terms and conditions hereinafter set forth, the Property located at 340 NE 10th Avenue, Boynton Beach in Palm Beach County, Florida (the "Properties") and more particularly described as follows: Property Control No.: 08-43-45-21-04-000-0050 Lot 5, Robert Wells Subdivision, According to the Plat thereof on file in the Office of the Clerk of the Circuit Court in and for Palm Beach County, Florida, Recorded in Plat Book 11, Page 66, Less the North 10 feet conveyed to Palm Beach County in Official Records Book 3814, Page 1275. 2. PURCHASE PRICE AND PAYMENT. The Purchase Price to be paid for the Property shall be Autry Thousand----------------------------------------------- $50 .......................................................................................................................payable in ............................................................................................................................................................................. ._..0........._.................................................................... cash, by wire transfer of United States Dollars at the Closing. 3. DEPOSIT. 3.1 Earnest Money Deposit. Within five (5) Business Days after the execution of the Purchase Agreement by both parties, PURCHASER shall deliver to Lewis, Longman & Walker, PA ("Escrow Agent") a deposit in the amount of One Thousand Dollars ($1,000.00) the "Deposit"). 3.2 Application/Disbursement of Deposit. The Deposit shall be applied and disbursed as follows: The Deposit shall be delivered to SELLER at Closing and the PURCHASER shall receive credit for such amount against the Purchase Price. If this Agreement is terminated during the Feasibility Period (hereinafter defined) for any reason, the Deposit shall be immediately refunded to the PURCHASER. If this Agreement is terminated due to a default, pursuant to Section 12, the Deposit shall be delivered to (or retained by, as applicable) the non -defaulting Party, and the non -defaulting Party shall have such additional rights, if any, as are provided in Section 12. 3.3 Escrow Agent. PURCHASER and SELLER authorize Escrow Agent to receive, deposit and hold funds in escrow and, subject to clearance, disburse them upon proper authorization and in accordance with Florida law and the terms of this Agreement. The parties agree that Escrow Agent will not be liable to any person for misdelivery of escrowed items to PURCHASER and SELLER, unless the misdelivery is due to Escrow Agent's willful breach of this Agreement or gross negligence. If Escrow Agent interpleads the subject matter of the escrow, Escrow Agent will pay the filing fees and costs from the deposit and will recover reasonable attorney's fees and costs to be paid from the escrowed funds which are charged and awarded as court costs in favor of the prevailing party. All claims against Escrow Agent will be arbitrated, so long as Escrow Agent consents to arbitrate. 4. EFFECTIVE DATE. The effective date of the Purchase Agreement is the date that the Escrow Formatted: Position: Horizontal: 0.99", Agent receives the Escrow Deposit and Escrow Agent executes the Agreement&_d 2uv�-,,_o-otr..J.2teo-, Relative to: Page, Vertical: 3.38", Relative db2n..�._c 2.y§.ft2_rro,d�N�e,;(��, 11 executuon..of.:th.is_BAgvee,o�c�o�t ov:._SSV,Ve_q:_s_d�_�.V.V._have;d'hc�_o tion inane to: Page d'�us �gv,eemeo�dn. 5. CLOSING. The purchase and sale transaction contemplated herein shall close on or before M Formatted: Position: Horizontal: 0.97", $g 2C17 (the "Closing"), unless extended by other provisions of Relative to: Page, Vertical: 4.5", Relative to: this Agreement or by written agreement, signed by both parties, extending the Closing. Page Formatted: Highlight 6. TITLE TO BE CONVEYED. At Closing, SELLER shall convey to PURCHASER, by S,vac c uV_Warranty Deed complying with the requirements of the Title Commitment (hereinafter defined), valid, good, marketable and insurable title in fee simple to the Property, free and clear of any and all liens, encumbrances, conditions, easements, assessments, restrictions and other conditions except only the following (collectively, the "Permitted Exceptions"): (a) general real estate taxes and special assessments for the year of Closing and subsequent years not yet due and payable; (b) covenants, conditions, easements, dedications, rights-of-way and matters of record included on the Title Commitment or shown on the Survey (defined in Section 7), to which PURCHASER fails to object, or which PURCHASER agrees to accept, pursuant to Section 7.1 and Section 7.2 hereof. 7. FEASIBILITY PERIOD. The PURCHASER, and its designees shall have d nt,4;ee (12-3) days from Formatted: Position: Horizontal: 1.03", the Effective Date of this Agreement ("Feasibility Period"), at PURCHASER's expense, to make Relative to: Page, Vertical: 7.27", Relative inquiries to determine if the Property is suitable for its intended use and to enter upon the Property, to: Page at any time and from time to time with reasonable notice to SELLER and so long as said investigations do not result in a business interruption, to perform any and all physical tests, inspections, valuation appraisals and investigations of the Property, including but not limited to Phase I and Phase II investigations, which PURCHASER may deem necessary. During this Feasibility Period, PURCHASER may elect, in PURCHASER's sole and absolute discretion, to terminate this contract and receive back all deposits hereunder. If PURCHASER elects to terminate this Agreement in accordance with this Section, PURCHASER shall: (i) leave the Property in substantially the condition existing on the Effective Date, subject to such disturbance as was reasonably necessary or convenient in the testing and investigation of the Property; (ii) to the extent practicable, shall repair and restore any damage caused to the Property by PURCHASER's Formatted: Position: Horizontal: 0.97", testing and investigation; and (iii) release to SELLER, at no cost, all reports and other work generated Relative to: Page, Vertical: 0.66", Relative as a result of the PURCHASER's testing and investigation. PURCHASER hereby agrees to indemnify to: Page and hold SELLER harmless from and against all claims, losses, expenses, demands and liabilities, including, but not limited to, attorney's fees, for nonpayment for services rendered to PURCHASER (including, without limitation, any construction liens resulting therefrom) or for damage to persons or property (subject to the limitation on practicability provided above) arising out of PURCHASER's investigation of the Property. However, PURCHASER's indemnification obligations shall not exceed its statutory limits as provided within Section 768.28, Florida Statutes, and PURCHASER does not waive its sovereign immunity rights. SELLER hereby agrees to indemnify and hold PURCHASER harmless from and against all claims, losses, expenses, demands and liabilities, including, but not limited to, attorney's fees, for nonpayment for services cjuq; ct; .Y.a hi ed by e e -e- SELLER_y_n -e�k- 4e e .ry,., , . .. shy UR'CHASER'S AN'D SELLERS' obligations under this Section shall survive the termination, expiration or Closing of this Agreement. 7.1 Title Review. Within jeep-ftv-e (1Q-5) days of the Effective Date, PURCHASER shall obtain, at the PURCHASER's expense, from a Title Company chosen by PURCHASER (hereinafter "Title Company"), a Title Commitment covering the Property and proposing to insure PURCHASER in the amount of the Purchase Price subject only to the Permitted Exceptions, together with complete and legible copies of all instruments identified as conditions or exceptions in Schedule B of the Title Commitment. ,Any and all assessments, outstanding utility charges, liens and other matters not constituting Formatted: Highlight Permitted Exceptions shall be paid by Seller prior to or at closing from Seller's proceeds, or Ly wut h the preapproval of SELLER. PURCHASER shall examine the Title Commitment and deliver written notice to SELLER no later than fufteeoi"tty (L� ) days after the Effective Date notifying SELLER of any objections PURCHASER has to the condition of title (hereinafter "Title Objections"). If PURCHASER fails to deliver the Title Objections to SELLER within the aforesaid review period, title shall be deemed accepted subject to the conditions set forth in the Title Commitment. If PURCHASER timely delivers the Title Objections, then SELLER shall have thirty (30) days to diligently and in good faith undertake all necessary activities to cure and remove the Title Objections (hereinafter "Cure Period"). In the event that SELLER is unable to cure and remove, or cause to be cured and removed, the Title Objections within the Cure Period, to the satisfaction of PURCHASER, then PURCHASER, in PURCHASER's sole and absolute discretion, shall have the option of (i) extending the Cure Period and the Closing for one additional thirty (30) day period, or (ii) accepting the title as it then is ua;- € ka gassaf-trk�a $ €-a y aak ,or (iii) canceling and terminating this Agreement, in which case, the Deposit shall be returned to PURCHASER and the Parties shall have no further obligations or liability hereunder, except for those expressly provided herein to survive termination of this Agreement. Prior to the Closing, PURCHASER shall have the right to cause the Title Company to issue an updated Title Commitment ("Title Update") covering the Property. If any Title Update contains any conditions which did not appear in the Title Commitment, and such items render title unmarketable, PURCHASER shall have the right to object to such new or different conditions in writing prior to Closing. All rights and objections of the Parties with respect to objections arising from the Title Update shall be the same as objections to items appearing in the Title Commitment, subject to the provisions of this Section. 7.2. Survey Review. Within ffeco_(5).J.2.ys_q .the Effective .PURCHASER, at PURCHASER's expense, shall ogc(2o- , a current boundary survey (the "Survey") of the Property, indicating the number of acres comprising the Property to the nearest 1/100th of an acre. If the Survey discloses encroachments on the Property or that improvements located thereon encroach on setback lines, easements, lands of others or violate any restrictions, covenants of this Agreement, or applicable governmental regulations, the same shall constitute a title defect and shall be governed by the provisions of Section 7.1 concerning title objections_ _on_c) -- Gi HN S_ _.R s') MVVo 2tl.:..12— S��LV.ER no late t.ha.� fifteen (I�) c)�!Y .p.liov to ¢:Vo i o��?tru(yun� SS�V.SR q��o�� o�iy�¢�inns R.U..R H�SSGi has to..:the Suvvey. 7.3 SELLER Deliveries. Formatted: Position: Horizontal: 0.99", Relative to: Page, Vertical: 0.6", Relative to: Page Formatted: Position: Vertical: 2.13", Relative to: Page I SELLER shall deliver to PURCHASER the following documents and instruments _Y_g._SSL.(.E.R➢s.. 9. s22Ls uc?_n ov_cont,voll if,any__--within five (5) days of the Effective Date of this Agreement, except as specifically indicated: 7.3.1 Copies of any reports or studies (including engineering, environmental, soil borings, and Formatted: Position: Horizontal: 0.97", other physical inspection reports), in SELLER's possession or control with respect to the physical Relative to: Page, Vertical: 5.72", Relative condition or operation of the Property, if any. to: Page 7.3.2 Copies of all licenses, variances, waivers, permits (including but not limited to all surface water management permits, wetland resource permits, consumptive use permits and environmental resource permits), authorizations, and approvals required by law or by any governmental or private authority having jurisdiction over the Property, or any portion thereof (the "Governmental Approvals"), which are material to the use or operation of the Property, in S_ELLER.'.s. 9.ssss,uc?_�.._gv:_¢.: any. _....................... 7.3.3-ru€aa=t€a ........@ :.t , :t. esu ieas s -awe h t#�aaaV_ SELLER warrants that there will not be, at the time of Closing, any unrecorded instruments affecting the title to the Property, including, but not limited to any conveyances,aolfl-, licenses. --or- s. 8. CONDITIONS TO CLOSING. PURCHASER shall not be obligated to close on the purchase of the Property unless each of the following conditions (collectively, the "Conditions to Closing") are either fulfilled or waived by PURCHASER in writing: 8.1. Representations and Warranties. All of the representations and warranties of SELLER contained in this Agreement shall be true and correct as of Closing. 8.2. Condition of Property. The physical condition of the Property shall be the same on the date of Closing as on the Effective Date, reasonable wear and tear excepted. 8.3. Pending Proceedings. At Closing, there shall be no litigation or administrative agency or other governmental proceeding of any kind whatsoever, pending or threatened, which has not been disclosed, prior to closing, and accepted by PURCHASER. 8.4. Compliance with Laws and Regulations. The Property shall be in compliance with all applicable federal, state and local laws, ordinances, rules, regulations, codes, requirements, licenses, permits and authorizations as of the date of Closing. 8.5. Occupancy. The property shall be conveyed to the PURCHASER at time of closing 2 ibject to a Formatted: Highlight Vease which exr�ires on 12�31%2D1, S�uc h lease shall be assigned to the PURCHASER at Closun . 9. CLOSING DOCUMENTS. The PURCHASER shall prepare, at idos_soVe cost ,a_nd..exp2j�ag,-,or cause to be prepared, the Closing Documents set forth in this Section, except for documents prepared by the SELLER'S Title Company. At Closing, SELLER shall execute and deliver, or cause to be executed and delivered to PURCHASER the following documents and instruments: 9.1. Deed. A Specuai Warranty Deed (the "Deed") conveying to PURCHASER valid, good, marketable and insurable fee simple title to the Property free and clear of all liens, encumbrances and other conditions of title other than the Permitted Exceptions. 9.2 Seller's Affidavits. SELLER shall furnish to PURCHASER an owner's affidavit attesting that, to the best of its knowledge, no individual or entity has any claim against the Property underthe applicable construction lien law; and that there are no parties in possession of the Property otherthan SELLER_ p_o�c�..:dnhp,;tenao�tr,_i�pe)_c�.i:.:that._�::ertaiojeas.e.which..px.pives._on..12/ �,�2�1 . SELLER shall also exec�i�t.�._�:�.. PAS a non -foreign affidavit with respect to the Property. In the event SELLER is unable to deliver its affidavits referenced above, the same shall be deemed an uncured title objection. 9.3. Closing Statement. A closing statement setting forth the Purchase Price, the Deposit, all credits, adjustments and prorations between PURCHASER and SELLER, all costs and expenses to be paid at Closing, and the net proceeds due SELLER, which PURCHASER shall also execute and deliver at Closing&_q�¢ ..p. i v,_a,a ?oqe V,6s,_ghd 6o c,;(v o,;dd c _S_ _,V.d Gi. 9.4. Corrective Documents. Documentation required to clear title to the Property of all liens, encumbrances and exceptions, if any, other than Permitted Exceptions. 9.5. Additional Documents. Such other documents as PURCHASER or the Title Company may reasonably request that SELLER execute and deliver, and any other documents required by this Agreement or reasonably necessary in order to close this transaction and effectuate the terms of this Agreement. 10. PRORATIONS, CLOSING COSTS AND CLOSING PROCEDURES. 10.1. Prorations. Assessments, rents, interest, insurance and other expenses of the Property shall be prorated through the day before Closing. PURCHASER shall have the option of taking over existing policies of insurance, if assumable, in which event premiums shall be prorated. Cash at Closing shall be increased or decreased as may be required by prorations to be made through the day prior to Closing. Advance rent and security deposits, if any, will be credited to PURCHASER. Taxes shall be prorated based upon the current year's tax with due allowance made for maximum allowable discount. 10.2 Ad Valorem Taxes. PURCHASER and SELLER shall comply with Section 196.295, Florida Statutes, with respect to the payment of prorated ad valorem taxes for the year of closing into escrow with the Palm Beach County Tax Collector's Office. In the event that, following the Closing, the actual amount of assessed real property tax on the Property for the current year is higher than any estimate of such tax used for purposes of the Closing, the parties shall re -prorate any amounts paid or credited based on such estimate as if paid in November. This shall survive the Closing. 10.3. Special Assessment Liens. Certified, confirmed and ratified special assessment liens imposed by public bodies as of Closing are to be paid by SELLER. Pending liens as of Closing shall be assumed by PURCHASER. If the improvement has been substantially completed as of the Effective Date, any pending lien shall be considered certified, confirmed or ratified and SELLER shall, at Closing, be charged an amount equal to the last estimate or assessment for the improvement by the public body. 10.4. Closing Costs. PURCHASER shall be responsible for d ud:V uovsvvo�¢ c�xac�v�ss�k- a8 ,, v d,ec , recording the deed and half of all general closing expenses (settlement fee, courier fees, overnight package, etc.). SELLER is responsible for c�oc;:�vo�rpv v tla_q:Y s _oro s_pov,d (v,c v ec,,,_half of all general closing expenses&_n..o.t _q_ x¢, ect and their own legal fees. All other costs of closing shall be borne by PURCHASER. 10.5 Closing Procedure. PURCHASER shall fund the Purchase Price subject to the credits, offsets and prorations set forth herein. SELLER and PURCHASER (as applicable) shall Formatted: Position: Horizontal: 1.08", Relative to: Page, Vertical: 0.62", Relative to: Page, Width: Exactly 6.07" Formatted: Position: Horizontal: 0.99", Relative to: Page, Vertical: 9.7, Relative to: Page execute and deliver to Closing Agent the Closing Documents. The Closing Agent shall, at Closing: (i) disburse the sale proceeds to SELLER; (ii) deliver the Closing Documents and a "marked -up" Title Commitment to PURCHASER, and promptly thereafter, record the Deed and other recordable Closing Documents in the appropriate public records. 10.6 Existing Mortgages and Other Liens. At Closing, SELLER shall obtain, or cause to be obtained, satisfaction or release of record of all mortgages, liens and judgments applicable to and encumbering the Property. 11. REPRESENTATIONS, COVENANTS AND WARRANTIES. To induce PURCHASER to enter into this Agreement, SELLER makes the following representations, all of which, to the best of its knowledge, in all material respects and except as otherwise provided in this Agreement (i) are now true, and (ii) shall be true as of the date of the Closing unless SELLER receives information to the contrary, and (iii) shall survive the Closing. In that event, PURCHASER shall be provided immediate notice as to the change to the following representations: 11.1 At all times from the Effective Date until prior to Closing, SELLER shall keep the Property (whether before or after the date of Closing) free and clear of any mechanic's or materialmen's liens for work or materials furnished to or contracted for, by or on behalf of SELLER prior to the Closing, and SELLER shall indemnify, defend and hold PURCHASER harmless from and against all expense and liability in connection therewith (including, without limitation, court costs and reasonable attorney's fees). 11.2 SELLER has no actual knowledge nor has SELLER received any notice of any litigation, claim, action or proceeding, actual or threatened, against SELLER or the Property by any organization, person, individual or governmental agency which would affect (as to any threatened litigation, claim, action or proceeding, in a materially adverse fashion) the use, occupancy or value of the Property or any part thereof or which would otherwise relate to the Property. 11.3 SELLER has full power and authority to enter into this Agreement and to assume and perform its obligations hereunder in this Agreement. SELLER does not and will not conflict with or result in the breach of any condition or provision, or constitute a default under, or result in the creation or imposition of any lien, charge, or encumbrance upon any of the Property or assets of the SELLER by reason of the terms of any contract, mortgage, lien, lease, agreement, indenture, instrument or judgment to which the SELLER is a party of which is or purports to be binding upon the SELLER or which affects the SELLER; no action by any federal, state or municipal or other governmental department, commission, board, bureau or instrumentality is necessary to make this Agreement a valid instrument binding upon the SELLER in accordance with its terms. 11.4 SELLER represents that SELLER will not, between the date of this Agreement and the Closing, without PURCHASER'S prior written consent, which consent shall not be unreasonably withheld or delayed, except in the ordinary course of business, create any encumbrances on the Property. For purposes of this provision the term "encumbrances" shall mean any liens, claims, options, or other encumbrances, encroachments, rights-of-way, leases, easements, covenants, conditions or restrictions. Additionally, SELLER represents that SELLER will not, between the date of this Agreement, and the Closing take any action to terminate or materially, amend or alter any existing leases presently in existence, without the prior consent of PURCHASER, which consent shall not be unreasonably withheld or delayed. 11.5 SELLER represents that there are no parties other than SELLER _'_n_ed,t,'h,e, te_o a,n,t y,n e_q,a_Vc ase_ dd�_cxu�cs_?o�_2f(2i in possession of the Property or any portion of the Property as a lessee. 11.6 SELLER shall not list or offer the Property for sale or solicit or negotiate offers to purchase the Property while this Agreement is in effect. SELLER shall use its best efforts to maintain the Property in its present condition so as to ensure that it shall remain substantially in the same condition from the conclusion of the Feasibility Period to the Closing Date. 11.7 SELLER has no actual knowledge nor has SELLER received any notice of any litigation, claim, action or proceeding, actual or threatened, against SELLER or the Property by any organization, person, individual or governmental agency which would affect (as to any threatened litigation, claim, action or proceeding, in a materially adverse fashion) the use, occupancy or value of the Property or any part thereof or which would otherwise relate to the Property. 11.8 SELLER represents that it has no actual knowledge nor has it received any notice that the Property has been, is presently or is contemplated to be utilized as a reservoir of hazardous material. As used herein, the term "Hazardous Material" shall mean any substance, water or material which has been determined by any state, federal or local government authority to be capable of posing a risk of injury to health, safety and property, including, but not limited to, all of those materials, wastes and substances designated as hazardous or toxic by the U.S. Environmental Protection Agency, the U.S. Department of Labor, the U.S. Department of Transportation, and/or any other state or local governmental agency now or hereafter authorized to regulate materials and substances in the environment (collectively "Governmental Authority(ies)"). 11.9 SELLER represents to PURCHASER that the Property is not subject to any deed restrictions or declaration of restrictions running with the Property which would affect the use of the Property except those constituting Permitted Exceptions as defined above. 11.10 Between the date of this Agreement and the date of closing, SELLER will not file any application for a change of the present zoning classification of the Property. 11.11 Authority. The execution and delivery of this Agreement by SELLER and the consummation by SELLER of the transaction contemplated by this Agreement are within SELLER'S capacity and all requisite action has been taken to make this Agreement valid and binding on SELLER in accordance with its terms. The person executing this Agreement on behalf of SELLER has been duly authorized to act on behalf of and to bind SELLER, and this Agreement represents a valid and binding obligation of SELLER. 11.12 Title. SELLER is and will be on the Closing Date, the owner of valid, good, marketable and insurable fee simple title to the Property, free and clear of all liens, encumbrances and restrictions of any kind, except the Permitted Exceptions (and encumbrances of record which will be discharged at Closing). 11.13 Additional Warranties and Representations of SELLER. As a material inducement to PURCHASER entering into this Agreement, SELLER, to the best of SELLER'S information and belief, hereby represents and warrants the following: 11.13.1 There are no pending applications, permits, petitions, contracts, approvals, or other proceedings with any governmental or quasi -governmental authority, including but not limited to, PURCHASER, municipalities, counties, districts, utilities, and/or federal or state agencies, concerning the use or operation of, or title to the Property or any portion thereof and SELLER has not granted or is not obligated to grant any interest in the Property to any of the foregoing entities. 11.13.2 There are no facts believed by SELLER to be material to the use, condition and operation of the Property in the manner that it has been used or operated, which it has not disclosed to PURCHASER herein, including but not limited to unrecorded instruments or defects in the condition of the Property which will impair the use or operation of the Property in any manner. 11.13.3 To the best of SELLER'S knowledge, the Property and the use and operation thereof are in compliance with all applicable county and governmental laws, ordinances, regulations, licenses, permits and authorizations, including, without limitation, applicable zoning and environmental laws and regulations. 12. DEFAULT. 12.1. PURCHASER's Default. In the event that this transaction fails to close due to a wrongful refusal to close or default on the part of PURCHASER, subject to the provisions of Paragraph 12.3 below, the Deposit actually then being held by the Escrow Agent shall be paid by Escrow Agent to SELLER as agreed liquidated damages and, thereafter, neither PURCHASER nor SELLER shall have any further obligation or liabilities under this Agreement, except for those expressly provided to survive the termination of this Agreement; provided, however, that PURCHASER shall also be responsible for the removal of any liens asserted against the Property by persons claiming by, through or under PURCHASER, but not otherwise. PURCHASER and SELLER acknowledge that if PURCHASER defaults, SELLER will suffer damages in an amount which cannot be ascertained with reasonable certainty on the Effective Date and that the amount of the Deposit being held by Escrow Agent most closely approximates the amount necessary to compensate SELLER. PURCHASER and SELLER agree that this is a bona fide liquidated damages provision and not a penalty or forfeiture provision. 12.2. Seller's Default. In the event that SELLER shall fail to fully and timely perform any of its obligations or covenants hereunder or if any of SELLER'S representations are untrue or inaccurate, then, notwithstanding anything to the contrary contained in this Agreement, PURCHASER may, at its option: (1) declare SELLER in default under this Agreement by notice delivered to SELLER, in which event PURCHASER may terminate this Agreement and demand that the Deposit be returned, including all interest thereon if any, in accordance with Section 3 and neither Party shall have any further rights hereunder, or (2) seek specific performance of this Agreement, waiving any action for damages. 12.3. Notice of Default. Prior to declaring a default and exercising the remedies described herein, the non -defaulting Party shall issue a notice of default to the defaulting Party describing the event or condition of default in sufficient detail to enable a reasonable person to determine the action necessary to cure the default. The defaulting Party shall have fifteen (15) days from delivery of the notice during which to cure the default, provided, however, that as to a failure to close, the cure period shall only be three (3) business days from the delivery of notice. Both parties agree that if an extension is requested, such extension shall not be unreasonably withheld. If the default has not been cured within the aforesaid period, the non -defaulting Party may exercise the remedies described above. 12.4. Survival. The provisions of this section shall survive the termination of this Agreement. 13. NOTICES. All notices required in this Agreement must be in writing and shall be considered delivered when received by certified mail, return receipt requested, or personal delivery to the following addresses: If to Seller: Anna W._Bfflio� sV��,mV�6�o�� Larann Land Investments,_.;L.. 44w.. P. O. Box 362042 Melbourne, FL 32936-2042 If to Purchaser: Michael Simon, Interim Director Boynton Beach Community Redevelopment Agency 710 N. Federal Highway Boynton Beach, FL 33435 With a copy to: Kenneth Dodge Lewis, Longman & Walker, PA 515 North Flagler Drive Suite 1500 West Palm Beach, FL 33401 14. BINDING OBLIGATION/ASSIGNMENT. The terms and conditions of this Agreement are hereby made binding on, and shall inure to the benefit of the successors and permitted assigns of the Parties hereto. SELLER may not assign its interest in this Agreement without the prior written consent of PURCHASER, which shall not be unreasonably withheld. PURCHASER shall have the right to assign this Agreement to the City of Boynton Beach (the "City") without the prior consent of SELLER and the PURCHASER shall be released from any further obligations and liabilities under this Agreement. The PURCHASER may not assign this Agreement to any other party without the prior written approval of SELLER, which shall not unreasonably withheld. If PURCHASER has been dissolved as an entity while this Agreement and/or the attached Lease Agreement are in effect, the provisions of section 163.357(1), Florida Statutes, (as it may be amended from time to time), shall apply. 15. BROKER FEES. The SELLER and PURCHASER hereby state that they have not dealt with a real estate broker in connection with the transaction contemplated by this Agreement and are not liable for a sales commission. SELLER shall indemnify, defend and hold harmless the PURCHASER from and against any and all claims, losses, damages, costs or expenses (including, without limitation, attorney's fees) of any kind or character arising out of or resulting from any agreement, arrangement or understanding alleged to have been made by SELLER on its behalf with any broker or finder in connection with this Agreement. P-URCHASER shad i indemnity._defend_and_h_oV_d_havm_Vems the_5EL.L Gi fvo oo_ o_c 2 uo�sd o� _ o�c_ VV_ mV uo os Vass s,_c o o s _mss v_ x eo�sc s_�uo� V �e uo� uvutd� d Vunoud rdu n, d gooey s es) c? 2o2K kind ov ¢ h radar a:isun out of ov..:es��ki g f:2M 2D.y f'g. c o eon .. v� neo c odd ov �o c ost ode uo� VV g c do rec be o� M2d2j2yRIIRCEASIFR ooh ut's a uvudd� o y bo ?Neo ov finder in connection with this � veeo�c nt. The provisions of this Section shall survive Closing or termination of this Agreement. 16. ENVIRONMENTAL CONDITIONS. 16.1. For purposes of this Agreement, pollutant ("Pollutant") shall mean any hazardous or toxic substance, material, or waste of any kind or any contaminant, pollutant, petroleum, petroleum product or petroleum by-product as defined or regulated by environmental laws. Disposal ("Disposal") shall mean the release, storage, use, handling, discharge, or disposal of such Pollutants. Environmental laws ("Environmental Laws") shall mean any applicable federal, state, or local laws, statutes, ordinances, rules, regulations or other governmental restrictions. 16.1.1 As a material inducement to PURCHASER entering into this Agreement, SELLER hereby warrants and represents the following, as applicable: (1) That SELLER and occupants of the Property have obtained and are in full compliance with any and all permits regarding the Disposal of Pollutants on the Property or contiguous property owned by SELLER, to the best of SELLER'S knowledge. Formatted: Position: Horizontal: 1.01", Relative to: Page, Vertical: 4.71", Relative to: Page Formatted: Position: Vertical: 7.07", Relative to: Page I (2) SELLER is not aware nor does it have any notice of any past, present or future events, conditions, activities or practices which may give rise to any liability or form a basis for any claim, demand, cost or action relating to the Disposal of any Pollutant on the Property. SELLER is not aware nor does it have any notice of any past, present or future events, conditions, activities or practices on contiguous property that is owned by SELLER which may give rise to any liability or form a basis for any claim, demand, cost or action relating to the Disposal of any Pollutant affecting the SELLER'S property. (3) There is no civil, criminal or administrative action, suit, claim, demand, investigation or notice of violation pending or, to the best of that entity's knowledge, threatened against SELLER or the Property relating in any way to the Disposal of Pollutants on the Property, any portion thereof, or on any contiguous property owned by SELLER. 17. PUBLIC RECORDS. PURCHASER is a public agency subject to Chapter 119, Florida Statutes. The SELLER is hereby notified that the PURCHASER is required by law, pursuant to Chapter 119, to maintain and disclose upon request all records deemed public under the statute including this Agreement and some or all of the documents necessary to consummate the transaction set forth herein. To the extent that any litigation should be instituted by SELLER, either directly or as a third party, to prevent or prohibit PURCHASER from disclosing or providing documents involving this Agreement or the transaction set forth in the Agreement pursuant to a public records request submitted under Chapter 119, SELLER agrees that PURCHASER may either: 1) defend the claim up to and including final judgment, or 2) interplead the challenged documents into the court. 18. MISCELLANEOUS. 18.1. General. This Agreement, and any amendment hereto, may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall, together, constitute one and the same instrument. The section and paragraph headings herein contained are for the purposes of identification only and shall not be considered in construing this Agreement. Reference to a Section shall be deemed to be a reference to the entire Section, unless otherwise specified. No modification or amendment of this Agreement shall be of any force or effect unless in writing executed by the Parties. This Agreement sets forth the entire agreement between the Parties relating to the Property and all subject matter herein and supersedes all prior and contemporaneous negotiations, understandings and agreements, written or oral, between the Parties. This Agreement shall be interpreted in accordance with the laws of the State of Florida. The Parties hereby agree that jurisdiction of any litigation brought arising out of this Agreement shall be in the Fifteenth Judicial Circuit, in and for Palm Beach County, Florida, or, should any cause of action be limited to federal jurisdiction only, in the United States District Court for the Southern District of Florida. 18.2. Computation of Time. Any reference herein to time periods which are not measured in business days and which are less than six (6) days, shall exclude Saturdays, Sundays and legal holidays in the computation thereof. Anytime period provided for in this Agreement which ends on a Saturday, Sunday or legal holiday shall extend to 5:00 p.m. on the next full business day. Time is of the essence in the performance of all obligations under this Agreement. Time periods commencing with the Effective Date shall not include the Effective Date in the calculation thereof. 18.3. Waiver. Neither the failure of a party to insist upon a strict performance of any of the terms, provisions, covenants, agreements and conditions hereof, nor the acceptance of any item by a party with knowledge of a breach of this Agreement by the other party in the performance of their respective obligations hereunder, shall be deemed a waiver of any rights or remedies that a party may have or a waiver of any subsequent breach or default in any of such terms, provisions, covenants, agreements or conditions. This paragraph shall survive termination of this Agreement and the Closing. 18.4. Construction of Agreement. The Parties to this Agreement, through counsel, have participated freely in the negotiation and preparation hereof. Neither this Agreement nor any amendment hereto shall be more strictly construed against any of the Parties. As used in this Agreement, or any amendment hereto, the masculine shall include the feminine, the singular shall include the plural, and the plural shall include the singular, as the context may require. Provisions of this Agreement that expressly provide that they survive the Closing shall not merge into the Deed. 18.5. Severability. If any provision of this Agreement or the application thereof shall, for any reason and to any extent, be invalid or unenforceable, neither the remainder of this Agreement nor the application of the provision to other persons, entities or circumstances shall be affected thereby, but instead shall be enforced to the maximum extent permitted by law. The provisions of this Section shall apply to any amendment of this Agreement. 18.6 Handwritten Provisions. Handwritten provisions inserted in this Agreement and initialed by PURCHASER and SELLER shall control all printed provisions in conflict therewith. 18.7 Waiver of Jury Trial. As an inducement to PURCHASER agreeing to enter into this Agreement, PURCHASER and SELLER hereby waive trial byjury in any action or proceeding brought by either party against the other party pertaining to any matter whatsoever arising out of or in any way connected with this Agreement. 18.8. Attorneys Fees and Costs. Should it be necessary to bring an action to enforce any of the provisions of this Agreement, reasonable attorneys' fees and costs, including those at the appellate level, shall be awarded to the prevailing party. 18.9 Binding Authority. Each party hereby represents and warrants to the other that each person executing this Agreement on behalf of the PURCHASER and SELLER has full right and lawful authority to execute this Agreement and to bind and obligate the party for whom or on whose behalf he or she is signing with respect to all provisions contained in this Agreement. 18.10 Recording. This Agreement may be recorded in the Public Records of Palm Beach County, Florida. 18.11 Survival. The covenants, warranties, representations, indemnities and undertakings of SELLER set forth in this Agreement, shall survive the Closing, the delivery and recording of the SELLER'S Property Deed and PURCHASER's possession of the Property. 18.12 SELLER Attorneys' Fees and Costs. SELLER acknowledges and agrees that SELLER shall be responsible for its own attorneys' fees and all costs, if any, incurred by SELLER in connection with the transaction contemplated by this Agreement. SIGNATURES ON FOLLOWING PAGE IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective date. PURCHASER: SELLER: BOYNTON BEACH COMMUNITY LARANN LAND INVESTMENTS I.L.0 REDEVELOPMENT AGENCY Printed Name: Printed Name: Title: Board Chair Title: Date: Date: WITNESS: WITNESS: _ Printed Name: Printed Name: ESCROW AGENT Lewis, Longman & Walker, P.A. Printed Name: ADDENDUM TO CONTRACT THIS ADDENDUM TO CONTRACT is attached to and made a part of that certain Purchase and Sale Agreement of even date herewith (the "Agreement") by and between BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, a public agency created pursuant to Chapter 163, Part III, of the Florida Statutes ("Purchaser") and LARANN LAND INVESTMENTS, LLC, a Florida limited liability company ("Seller"). In the event of any conflict or inconsistency between the terms and provisions of the Agreement and this Addendum to the Agreement (the "Addendum"), the terms and provisions of this Addendum shall be construed to control and prevail. Capitalized terms appearing in this Addendum shall have the same meaning as said terms are given within the Agreement. The Agreement and this Addendum are hereinafter sometimes collectively referred to as the "Agreement". The parties further agree as follows: Purchaser to be aware that Seller acquired the property which is the subject of this transaction by way of Quit Claim Deed, and, as a result, Seller's knowledge of the condition of the property is limited and that Seller is selling and Purchaser is buying the property in its present "AS IS" CONDITION WITHOUT REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE. PURCHASER INSPECTION - This agreement is conditioned upon Purchaser's personal approval of an inspection of the Property and the improvements on the Property, if any. Purchaser's inspection may include, at Purchaser's option, the site boundaries, geological condition, structural, mechanical, electrical and general condition of the improvements to the Property, an inspection of the Property for the possible presence of hazardous materials, a pest Inspection, and a soils/stability inspection. All inspections are to be (a) ordered by Purchaser, (b) performed by an inspector of Purchaser's choice, and (c) completed at Purchaser's expense. Purchaser shall not alter the Property or any improvements on the Property without first obtaining Seller's permission. Purchaser is solely responsible for interviewing and selecting all inspectors. Purchaser shall restore the Property and all Improvements on the Property to the same condition they were in prior to the inspection. Purchaser shall be responsible for alt damages resulting from any inspection of the Property performed on Purchaser's behalf. Further, the closing of this transaction shall constitute as an acknowledgement by the Purchaser(s) that the Property and premises were accented without representation or warranty of any kind or nature by the Seller. AUTOMATIC WAIVER IF PURCHASER DOES NOT DISAPPROVE INSPECTION. This inspection contingency SHALL CONCLUSIVELY BE DEEMED SATISFIED (WAIVED) unless Purchaser gives written notice of disapproval of the inspections within 10 days after mutual acceptance of the Agreement. Purchaser may disapprove the inspection for any reason in Purchaser's sole discretion. If Purchaser gives a timely notice of disapproval, then this Agreement shall terminate and the earnest money shall be refunded to the Purchaser. SIGNATURES ON FOLLOWING PAGE PURCHASER: SELLER: BOYNTON BEACH COMMUNITY LARANN LAND INVESTMENTS, LLC REDEVELOPMENT AGENCY Printed Name: Title: Board Chair Date: WITNESS: Printed Name: Printed Name: Title: Date: WITNESS: Printed Name: ATTACHMENT V ANNWX LEASE CommercialThis _entered o .�, �i�20-16,��b! ., rnr, (Landlord) 1 Haitian [ lil=1! 'l'Ili R 1 i Landlord is the owner of +;. IyAdrnalfl& LLC, Improvemen13 whose address Is: 340 NE 10h AM. ftVntCM IODA*, EL 33435 (Prieral Landlord desires to lease the Lmsed Premises to Tenant, and Tenant desires to lease the Leased .m Landlord for berm, at the rental and upon the provisionsforth THEREFORE, In consideration of the mutual promises contained herein, and for other good and valuable consideration, It is agreed: The Initial Term of this Lease shall begin on the _1_ day of 3n[IlilatV 20-17--, and arid on the W day of DIM 201L Tenant accepts the Promises In to current �ms-lsw condition. Tenant shall pay to Landlord during the Initial Term renit of SZ?a Dollars ($) per year, payable In IrisWilments of -160.11111L Dollars ($) per month. Each Installment payment shall be due In advance no later than the third day of each calendar month duging the term to Landlord at the followingaddress: Larann Land Investments, L I.C. PO Box 4216 Cr R. 33424-4216 Tenant shall also pay to Lardlard a "Security DepWi - In the amount ag GQ A 10 prior to move in. Notwithstanding the forgoing, Tenant shall not use the Lansied Premises fhr the purposes of staring, manuftiduring or selling any expliogives, flammables or other Inherently dangerous substance, ftmIcal, thing or device. This property Is to be used solely flor additional parldrig. Sublease and Assignment. such consent not to be unreasonably withheld or delayed. During the Lease term, Tenant shall make, t TeNrit's arty and all necessary repafrs to me Leased Premises, subject to ths r' responsibleh In this Lena. Tenant Is 1 of obligations of the parUes otherwise set during the lease term. Alterations Improvements. �.w .. i 1 i ! - • +! ;..4 ! i . i # /r.. ♦ . Iti - - 1, Security Deposit. 77T, IF ei ■ � ■ _- r . � '! t.. a .■■ a �� ,� i,.■+.. Notice. Any notice requiredr permhod wider this Leese doll be deemed sufficienVyf If IG return trequested, Landlord, Larann Land,L Desire@ Finkelstein po Box 362042 Melbourne, Haitian Pantecultal Church I= Attris Rages EsUcal President Worth,5300 Haverford Way Lake FL 33453 Landlord and Tenant shall each hoe ft right lroM IftMe to ume VBV40 in"Ta–r-i'DEM-7 wftw noticethereof tothe others Tenant represents that Tenant Yes not shown the Promises by any real estate broker or agent and that Tenel has not oftMse Rice Andees fee or other similar h1 ■i ' 7 R i� M ■ ' k } i Iff a t M! t �..:; ■. i! .Y ! ■M . lR �. rt r M ■ # ■ i ■ # i 3andTenant shall exisaft a MemorandumofLemM. berecorded for the ■ i4 ti ` +1 givingrecordnoticeof T he appropriate provisions of this Leal any provision 4 this Lease. successorsSucces ors. The provistem of this Lem shah eirband to and be binding upon Landlord and Tenant and dwir respecM legal representatives, consent. tyNkmp" mu rmx ImIsTAK" complionce with Law. OR! . . . . ... . wass I M1}t-1, POW Agm0tmt. TAK sm"m"q, 11""I'M row p Y—awl sy 14A Pw no v ",V"k CAN kmaw mi DMA my Y."ll &VwNem" L "Mot - MIX, L I"" Q mA DNA SIT PMM6WA ITS E,= r CRA BOARD MEETING OF: May 9, 2017 1 Consent Agenda I I Old Business IX I New Business I I Legal I I Information Only CRAAB AGENDA ITEM: XIV.F. SUBJECT: Consideration of the Purchase and Sales Agreement with Steven Reichel for the Property located at 521 NE 2nd Street SUMMARY: CRA staff contacted the owner of the property located at 521 NE 2nd Street to discuss their desire to sell the property. The property is within the Heart of Boynton District on the east perimeter of the CRA owned property known as the Cottage District site. It is currently a multi -family property within the High Density Residential (HDR) Land Use category (see Attachment 1). The owner of the property has agreed to sell the parcel to the CRA for a purchase price of $166,000. An appraisal was done on April 1, 2017 with an appraised value of $166,000 (see Attachment II). Recent appraisals and purchases made by the CRA within the Cottage District area supports the sale price being offered by the owner. As indicated on the map (see Attachment III), this property is in the immediate proximity of the CRA owned property known as the Cottage District site making the acquisition of this parcel advantageous for the CRA and future redevelopment opportunities. The Purchase and Sale Agreement is provided as Attachment IV. FISCAL IMPACT: $166,000 plus approx. $2,500 for closing cost allowance from approved FY 2016 — 2017 Budget, Line Item 02-58200-401 CRA PLAN/PROJECT/PROGRAM: 2016 Boynton Beach Community Redevelopment Plan and FY 2016-2017 CRA Budget CRA BOARD MOTION/OPTIONS: Digitally signed by Michael Simon Michael Simon em cn=Michael Simon, o, ou, email=simonm@bbfl.us, c=US Date: 2017.05.05 15:30:32 -04'00' Michael Simon, Interim Executive Director ATTACHMENT ` � \ \an � \1 d a District Introduction Planning Challenges Planning Considerations The Vision Recommendations ƒ( Intr'oduc'tion The Heart of Boynton District is a 380 -acre neighborhood developed predominantly with single-family homes. The neighborhood has several parks, two public schools and numerous churches. Unfortunately, it has been the victim of disinvestment over the last 50 years. The two Census blocks of Tract 61 which encompasses this District have the median household income of $20,848, the lowest in the City. To counter the decline of the neighborhood, in 2001 the CRA and City adopted the Heart of Boynton Community Redevelopment Plan. The Plan was updated in 2014 to reflect the achievements of the original plan and add new projects to reflect the current market conditions. A number of recommendations of the original CRA Plan have been implemented, including: • The demolition of the Cherry Hill public housing project • The redevelopment of the Boynton Terrace site – Ocean Breeze West – into 21 single- family homes Redevelopment of Wilson Park and into Carolyn Sims Community Center • Expansion of the Palmetto Greens Park • Redevelopment of Sara Sims Park – Master Plan created, property acquired • Streetscape Improvements on Seacrest Boulevard • Redevelopment of Martin Luther King, Jr. Boulevard – Property acquired and Family Dollar developed • Development of new housing – 60 new single family homes developed In partnership with nonprofits, the City and CRA. The Heart of Boynton District is bounded by the C. Stanley Weaver (C -Canal) canal to the north, 1-95 to the west, N.E. 3rd Avenue to the south and the FEC rail line to the east. The area is within walking distance of the Cultural and Downtown Districts. A major arterial road—Seacrest Boulevard—runs through the neighborhood north/south. Martin Luther King, Jr. Boulevard, once lined with locally -owned businesses, runs east/west. There are two public elementary schools in the neighborhood, Poinciana and Galaxy. Both schools are STEM schools (Science, Technology, Engineering and Math). There are a number of parks and special use areas within the neighborhood, such as, Carolyn Sims Community Center, Galaxy Park and Scrub and Sara Sims Park. 10 Figure 57: Heart of Boynton District Location Map PlanniUq Challenges The Heart of Boynton area suffers from an aging and poorly maintained housing stock. The CRA and City, in partnership with local non -profits, continue to develop single-family homes, but there is a need for quality affordable multi -family rental housing. The problem is that—given low median household incomes—it cost more to build even modest apartments than many of the families can afford. This gap will has to be filled through some form of a subsidy. Another major deterrent to private investment is the visible blight and crime. There are still a number of small convenience stores that allow loitering and illegal activities for all to see, discouraging people to buy homes or invest in businesses within the area. The District is comprised of small parcels platted in the 1920's – 1930's, during Florida's land boom. The parcels are owned by many different people making assembly of a developable site very difficult and expensive. Moreover, many owners have an unrealistic sense of the value of their property. Over the years, the neighborhood has lost most of their retailers and service providers. There is no full service grocery store and only one take- out restaurant. The majority of commercial use 1 is represented by convenience stores. A new Family Dollar store at the corner of Martin Luther King, Jr. Boulevard and Seacrest Boulevard has been a welcome addition, but there is a need for more retail services. The neighborhood is bifurcated by a four - lane Seacrest Boulevard, which has only one signalized pedestrian crossing even though there are two elementary schools in the neighborhood. The width of the road and drive aisles encourage speeding through the neighborhood; clearly, the road is not presently designed at a neighborhood scale. Both Seacrest Boulevard and Martin Luther King, Jr. Boulevard have older, ill -maintained power poles with overhead utilities, causing a "visual blight." Figure 58: Example of District Planning Challenges Is P11 ga r r it ConAs d ge Er ga t ons Several factors were considered in determining the land use designations for the Heart of Boynton District. A future commuter rail station for the planned Tri - Rail Coastal Link service, which will serve the South Florida metropolitan region, is planned for downtown at N.E. 4th between Ocean Avenue and Boynton Beach Boulevard. To improve land development patterns in advance of station development, the City adopted a Downtown Transit Oriented Development District (DTOD), covering a %2 mile radius around the station's location, including a portion of the Heart of Boynton. The DTOD district regulations support increased intensity of development through a 25% density bonus. A second consideration is the Transportation Concurrency Exception Area (TCEA) which, in addition to the residential exception area applicable east of 1-95, exempts all development from the Palm Beach County traffic concurrency requirements thus allowing denser development. The Plan recommends increasing density within the area where the TCEA and TOD designations overlap. However, because this District is a low - scale neighborhood, no increase in height over 45' is recommended. Historic District. There are a significant number of historic cottages located along both sides of NE 3rd Avenue and the south side of NE 4th Avenue between N. Seacrest Boulevard and NE 1st Street. In order to protect these cottages while allowing commercial redevelopment of the south side of NE 3rd Avenue, the Plan recommends that: • The historic cottages from the south side of NE 3rd Avenue be relocated to the vacant lots on the north side of NE 3rd Avenue. • On completion of the relocations, a historic district, tentatively called Shepard Funk Addition Historic Cottage District, be created within the block enclosed by N. Seacrest Boulevard, NE 1st Street, NE 3rd Avenue, and NE 4th Avenue. The Heart of Boynton area will become a model neighborhood, with its unique character and history preserved. The vision includes enriching the original vernacular architecture of the neighborhood, investing in housing and commercial uses, and connecting both through the pedestrian and vehicular networks. Recommendations: Strentsrane Streetscape enhancements are recommended for the Seacrest Blvd and Martin Luther King Jr. Blvd. The space for these enhancements may be obtained through either right-of-way dedications or public easements. The enhancements should include: • Implement a Complete Streets program for Seacrest Boulevard and ML K Jr. Boulevard to accommodate bike lanes and bike racks, widening of sidewalks, decorative street lights, street furniture, and on -street parking. • Marking of major intersections with materials such as pavers, paint, etc. • Enhanced median landscaping • Bus shelters (will be required as part of new construction) • Additional signalized pedestrian crossings (including mid -block) along Seacrest BoulevardAddition of canopy street trees • Creation of a Pedestrian Zone adjacent to the right-of-ways that is inviting, safe and includes: • Minimum 8' wide clear sidewalk • Decorative light poles at both the vehicular and pedestrian scales • Require installation of canopy trees that provide immediate shading at time of construction • Undergrounding of overhead utilities • Creation of a greenway to connect the greenway proposed along NW 1 stAvenue, Sara Sims Park, and Wilson Park per the Connectivity Plan • Creation of an eco -trail to connect the existing scrub and linear parks per the Connectivity Plan 110 Figure 60: Seacrest Blvd Streetscape Area Figure 62: MLK JR. Blvd. Street Section Recommendations: Land Use The existing land use designations within the Heart of Boynton District are: • Low Density Residential — 5 units per acre (all of this land use designation is concentrated on the west side of Seacrest Boulevard. • Medium Density Residential — 10 units per acre (this land use designation is concentrated on the east side of Seacrest Boulevard) • High Density Residential — 11 units per acre (currently over the Ocean Breeze West development and along W. Seacrest from N.W. 8th to N.W. 9th) • Mixed -Use — 40 units per acre (this land use designation is placed on the CRA -owned Ocean Breeze East block and on CRA -owned property along MLK, Jr. Boulevard) • Local Retail Commercial, General Commercial, Industrial, Recreational, and Public & Private Governmental/Institutional Below is a table of the proposed land use and zoning designations that will apply within the Federal Highway Corridor District: Table 7: Recommended Future Land Use (FLU) Classifications within the Heart of Boynton District LAND USE DENSITY CORRESPONDING ZONING DENSITY GAP IG HEIGHT Mixon -Use Medium" 50 MU -2, MU -3 50 75' Mixed -Use Law 20 MU -1 20 45' High Density Residential 15 R4, IPUD 15 45' Medium Density 11 R, (PUD Residential 11 45' Lew Density 7.5 R - 'I -AAA, R 1-AAB R -1 -AA, R -1-A, R-1, Residential PUD 7.5 45' Local Retail Commercial n1a C-2, C-, PCD rVa 45' General rVa C-4 Commercial n1a 45' Industrial n1a M-1 n1a 45' PPGII rVa Public Usage n1a 45' Recreation Wa Recreation n1a 45' W Properties located within the TOD may recieve a 25% density bonus Figure 63: Recommended Land Use for the Heart of Boynton District LEGEND r" Recreational(R) Low Density Residential (LDR) 5 du/ac ;Medium Density Residential (MDR) 11 ducat High Density Residents] (HDR)15 dulzc Special High Density Residenlisl (5HUR) 20du/ac Inslitrid-al (PPGI) MLacal Retail Commercial (LRC) kk General Commercial (GC) Mixed Use Low (MUL) 20 dreac Mlxad Use Medium (MUM) 50 du/ac Mixed Use High (MUH) 00 du/ac TOD Recommendations: Urban Design • There are three architectural styles of historic structures in the Heart of Boynton: Mission, Frame Vernacular, and Mediterranean Revival. When building in this District, new development shall attempt to utilize one of these architectural styles. • A Historic Cottage District should be considered adjacent to the proposed Cottage District; where feasible, historically contributing cottages in the area shall be relocated in the Historic Cottage District. • Commercial buildings fronting MLK Jr., Boulevard and/or Seacrest Boulevard shall maximize the amount of glazing. • Residential buildings fronting MLK Jr., Boulevard and/or Seacrest Boulevard shall be designed to have pedestrian access from the main road and have front door facing the main road. • All buildings along MLK Jr., Boulevard and/or Seacrest Boulevard shall be set back to allow for a pedestrian zone. • Approximately 75% of the lot frontage must be occupied by structure and be adjacent to the pedestrian zone. • Buildings fronting MLK Jr., Boulevard shall be a maximum of two story and stepped back to continue to the maximum allowed height in the designated Zoning District. • Parking shall be located to the rear or side of the buildings • Curb cuts shall be permitted on Boynton Beach Blvd only when access is not possible from the rear or side. • When adjacent to commercial uses, single-family areas shall be protected through the use of landscape buffers and/or walls as appropriate. MILK rci l Multifamily— Model l +_S_.'n 'an Breeze -ast, MI R Figure 64: Heart of Boynton Projects Sara Sims Park Expansion Working with residents of the community, the CRAand its consultant created a master plan for the expansion and improvement of Sara Sims Park. The CRA has also purchased seven properties and deeded them to the City in preparation for the eventual expansion of the park. Staff will review the feasibility of converting a portion of Sara Sims Park Master Plan, along the western boundary, from Recreational Land Use to Single Family. This process shall include a public meeting, the Parks and Recreation Board review and recommendation, and Clty Commision approval. Ocean Breeze East The CRA owns 4.5 acres of vacant land east of Seacrest Boulevard between N.E. 6th and 7th Avenues. The CRA is seeking a private development partner to build a multi -family project on the site. Cottage District The CRA owns approximately 5 acres on the block between N.E. 4th and 5th Avenue. The CRA's goal for this site is to attract a private development partner to build single-family for -sale homes in the style of the surrounding historic cottages. MLK Commercial Leveraging CRA -owned land and economic development grants, the CRA was able to bring a Family Dollar store to the Martin Luther King, Jr. Boulevard corridor in 2015. The CRA owns additional land on the corridor and continues to work with developers to attract new and needed neighborhood retail. MLK Multi Family Utilizing CRA -owned land, the CRA is seeking to attract a private development partner to build a multi- family development along the Martin Luther King, Jr. Boulevard corridor. The development may include commercial uses. Figure 66: Ocean Breeze East Figure 67: Cottage District Figure 68: Example of a Commercial Project on MLK Jr. Blvd. Figure 69: Example of Multi Family Project on MLK Jr. Blvd. a ATTACHMENT II APPRAISAL REPORT TWO DWELLING RESIDENTIAL PROPERTY 521 NORTHEAST 2 STREET BOYNTON BEACH, FLORIDA 33435 by Vance Real Estate Service 7481 Northwest Fourth Street Plantation, Florida 33317-2204 for Boynton Beach Community Redevelopment Agency 710 North Federal Highway Boynton Beach, FL 33435 April 1, 2017 April 1, 2017 Boynton Beach Community Redevelopment Agency 710 North Federal Highway Boynton Beach, FL 33435 RE: Two dwelling residential property, 521 Northeast 2 Street, Boynton Beach, FL 33435 (Legal description is in the report) Ladies and Gentlemen: In fulfillment of our agreement, we transmit our Appraisal Report, in which we develop an opinion of market value for the fee simple estate in the referenced real property as of April 1, 2017. The report sets forth our value conclusion, along with data and reasoning supporting our opinion. This report was prepared for and our professional fee billed to Boynton Beach Community Redevelopment Agency. Our analyses have been prepared in conformance with the Uniform Standards of Professional Appraisal Practice (USPAP 2016-2017). This report is for possible acquisition of the appraised property. Jesse B. Vance, Jr. and Claudia Vance visited the property. If you have questions or further needs, please contact the undersigned. As a result of our analyses, we have developed the following opinion of the market value of the appraised property, subject to definitions, certifications, and limiting conditions set forth in the attached report. ONE HUNDRED SIXTY-SIX THOUSAND DOLLARS $166,000 (THIS LETTER MUST REMAIN ATTACHED TO THE REPORT WITH FORTY (40) NUMBERED PAGES PLUS ADDENDA FOR THE VALUE OPINION SET FORTH TO BE CONSIDERED VALID.) Respectfully submitted, Jesse B. Vance, Jr., MAI, SRA, ASA State -Certified General Real Estate Appraiser RZ-85 Claudia Vance, MAI State -Certified General Real Estate Appraiser RZ-173 MBA REAL ESTATE MANAGEMENT AND DEVELOPMENT 7481 Northwest 4`h Street, Plantation, FL 33317-2204 954/583-2116 TABLE OF CONTENTS Pate Number Title Page i Letter of Transmittal ii Table of Contents iii INTRODUCTION P otograp s o Subject t e Property 1 1-3-5 Mile Location Map 4 1-3-5 Mile Summary of Demographic Statistics Summary Important Facts Conclusions 5 7 of and DESCRIPTIONS ANALYSES & CONCLUSIONS I entity ot Client and Intended User 8 Intended Use 8 Identification of Real Estate Appraised 8 Ownership 8 Property Address and Legal Description 9 Real Estate Tax Analysis 9 Market Area Description 10 Zoning 14 Site Description 15 Building Description 16 Real Property Interest Appraised 17 Appraisal Purpose and Definition of Market Value 17 Effective Dates of the Appraisal and Report 19 Scope of the Work 19 Summary of Information Considered 19 Property History 20 Highest and Best Use 20 SALES COMPARISON APPROACH Improved Sales Location Map 24 Improved Sales Documentation 25 Improved Sales Comparison & Adjustment Charts 31 Valuation by Sales Comparison 33 FINAL VALUE OPINION 37 Certification and Limiting Conditions 39 ADDENDA Acquiring Deed Building sketch Copy of "R-2" Zoning Ordinance USPAP Standards Rule 2-2a Qualifications of the Appraisers INTRODUCTION Front Building Elevation Kitchen One of Two Bedrooms Living Room One of Two Bathrooms PHOTOS OF SUBJECT DUPLEX 521 NE 2nd Street Boynton Beach, Florida 2°d Bedroom Looking North on NE lst Street Looking South on NE lst Street Looking West on NE 4`" Avenue AREASTREETSCENES H W W O a � M W� W W M � f� � w a N x � W � ��z wao °oz z � � ��°� a w 1-3-5 MILE RADII FROM THE VALUED PROPERTIES Northeast Boynton Beach, Florida BBCRA NE Boynton Beach, FL Northeast Boynton Beach, Florida, 33435 Rings: 1, 3, 5 mile radii VANCE REAL ESTATE SERVICE �.� v In the identified area, the current year population is 185,121. In 2010, the Census count in the area was 174,990. The rate of change since 2010 was 0.90% annually. The five-year projection for the population in the area is 195,736 representing a change of 1.12% annually from 2016 to 2021. Currently, the population is 47.8% male and 52.2% female. The median age in this area is 40.8, compared to U.S. median age of 38.0. 1 mile 3 miles 5 miles Population 5,356 33,259 75,471 2000 Population 13,800 68,710 157,267 2010 Population 14,045 77,375 174,990 2016 Population 16,070 83,634 185,121 2021 Population 17,650 89,253 195,736 2000-2010 Annual Rate 0.18% 1.19% 1.07% 2010-2016 Annual Rate 2.18% 1.25% 0.90% 2016-2021 Annual Rate 1.89% 1.31% 1.12% 2016 Male Population 49.1% 47.8% 47.8% 2016 Female Population 50.9% 52.2% 52.2% 2016 Median Age 40.8 43.7 46.3 In the identified area, the current year population is 185,121. In 2010, the Census count in the area was 174,990. The rate of change since 2010 was 0.90% annually. The five-year projection for the population in the area is 195,736 representing a change of 1.12% annually from 2016 to 2021. Currently, the population is 47.8% male and 52.2% female. The median age in this area is 40.8, compared to U.S. median age of 38.0. 5,207 30,020 68,914 Race and (Ethnicity 5,356 33,259 75,471 2016 White Alone 45.8% 61.5% 66.0% 2016 Black Alone 47.4% 30.2% 25.3% 2016 American Indian/Alaska Native Alone 0.4% 0.3% 0.3% 2016 Asian Alone 1.0% 1.9% 2.2% 2016 Pacific Islander Alone 0.0% 0.0% 0.0% 2016 Other Race 2.9% 3.4% 3.6% 2016 Two or More Races 2.5% 2.6% 2.5% 2016 Hispanic Origin (Any Race) 13.3% 16.3% 16.8% Persons of Hispanic origin represent 16.8% of the population in the identified area compared to 17.9% of the U.S. population. Persons of Hispanic Origin may be of any race. The Diversity Index, which measures the probability that two people from the same area will be from different race/ethnic groups, is 64.0 in the identified area, compared to 63.5 for the U.S. as a whole. 2000 Households 5,207 30,020 68,914 2010 Households 5,356 33,259 75,471 2016 Total Households 6,211 35,714 79,058 2021 Total Households 6,850 38,009 83,232 2000-2010 Annual Rate 0.28% 1.03% 0.91% 2010-2016 Annual Rate 2.40% 1.15% 0.75% 2016-2021 Annual Rate 1.98% 1.25% 1.03% 2016 Average Household Size 2.58 2.31 2.32 The household count in this area has changed from 75,471 in 2010 to 79,058 in the current year, a change of 0.75% annually. The five-year projection of households is 83,232, a change of 1.03% annually from the current year total. Average household size is currently 2.32, compared to 2.30 in the year 2010. The number of families in the current year is 45,525 in the specified area. Data Note: Income is expressed in current dollars Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2016 and 2021. Esri converted Census 2000 data into 2010 geography. April 08, 2017 5 BBCRA NE Boynton Beach, FL Northeast Boynton Beach, Florida, 33435 Rings: 1, 3, 5 mile radii VANCE REAL ESTATE SERVICE �.� v Current average household income is $71,654 in this area, compared to $77,008 for all U.S. households. Average household income is projected to be $79,122 in five years, compared to $84,021 for all U.S. 1 mile 3 miles 5 miles Median Household Income per capita income of $29,472. The per capita income is projected to 2016 Median Household Income $42,061 $46,430 $49,346 2021 Median Household Income $49,315 $53,381 $55,795 2016-2021 Annual Rate 3.23% 2.83% 2.49% Average Household Income 3,454 21,664 52,201 2016 Average Household Income $64,135 $66,632 $71,654 2021 Average Household Income $70,578 $73,296 $79,122 2016-2021 Annual Rate 1.93% 1.92% 2.00% Per Capita Income 3,238 21,488 52,992 2016 Per Capita Income $25,631 $29,121 $30,972 2021 Per Capita Income $28,286 $31,864 $33,991 2016-2021 Annual Rate 1.99% 1.82% 1.88% Households by Income 3,244 20,817 51,133 Current median household income is $49,346 in the area, compared to $54,149 for all U.S. households. Median household income is 14,897 projected to be $55,795 in five years, compared to $59,476 for all U.S. households 2,066 9,636 Current average household income is $71,654 in this area, compared to $77,008 for all U.S. households. Average household income is projected to be $79,122 in five years, compared to $84,021 for all U.S. households Current per capita income is $30,972 in the area, compared to the U.S. per capita income of $29,472. The per capita income is projected to be $33,991 in five years, compared to $32,025 for all U.S. households Housing 2000 Total Housing Units 6,293 36,152 82,157 2000 Owner Occupied Housing Units 3,454 21,664 52,201 2000 Renter Occupied Housing Units 1,753 8,356 16,713 2000 Vacant Housing Units 1,086 6,132 13,243 2010 Total Housing Units 7,159 42,454 93,882 2010 Owner Occupied Housing Units 3,238 21,488 52,992 2010 Renter Occupied Housing Units 2,118 11,771 22,479 2010 Vacant Housing Units 1,803 9,195 18,411 2016 Total Housing Units 8,277 45,350 98,524 2016 Owner Occupied Housing Units 3,244 20,817 51,133 2016 Renter Occupied Housing Units 2,967 14,897 27,925 2016 Vacant Housing Units 2,066 9,636 19,466 2021 Total Housing Units 9,050 47,801 103,264 2021 Owner Occupied Housing Units 3,457 21,765 53,197 2021 Renter Occupied Housing Units 3,393 16,245 30,035 2021 Vacant Housing Units 2,200 9,792 20,032 Currently, 51.9% of the 98,524 housing units in the area are owner occupied; 28.3%, renter occupied; and 19.8% are vacant. Currently, in the U.S., 55.4% of the housing units in the area are owner occupied; 32.9% are renter occupied; and 11.7% are vacant. In 2010, there were 93,882 housing units in the area - 56.4% owner occupied, 23.9% renter occupied, and 19.6% vacant. The annual rate of change in housing units since 2010 is 2.17%. Median home value in the area is $191,036, compared to a median home value of $198,891 for the U.S. In five years, median value is projected to change by 3.14% annually to $223,019. Data Note: Income is expressed in current dollars Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2016 and 2021. Esri converted Census 2000 data into 2010 geography. April 08, 2017 0 SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS PROPERTY APPRAISED: OWNERSHIP: LAND AREA: Two dwelling residential property 501 Northeast 2 Street Boynton Beach, FL 33435 521 Boynton LLC 7790 Villa D' Este Way Delray Beach, FL 33446 6,621 square feet IMPROVEMENTS: Residential property with two dwellings containing at total of 1,444 square feet of building area, constructed in 1958. Each unit consists of two bedrooms and two bathrooms. Average unit size is 722 square feet. ZONING: APPRAISAL PURPOSE: INTEREST APPRAISED: CURRENT USE: HIGHEST AND BEST USE: "R-2", Single and two-family residential district in the city of Boynton Beach To develop an opinion of market value Fee simple Two residential dwelling units As vacant: Single residence or two dwelling residence As improved: Two dwelling units VALUE BY THE SALES COMPARISON APPROACH: ONE HUNDRED SIXTY-SIX THOUSAND DOLLARS 166 000 VALUATION DATE: April 1, 2017 Exposure Time: 6 months prior to selling at the appraised value 7 DESCRIPTIONS, ANALYSES, CONCLUSIONS APPRAISAL REPORT This is an APPRAISAL REPORT that complies with Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice (USPAP 2016 - 2017) 2-2(a)(i) State the identity of the client and any intended users, by name or type; The client and intended user of this report is the Boynton Beach Community Redevelopment Agency. 2-2(a)(ii) State the intended use of the appraisal; The intended use of the appraisal is for possible acquisition of the appraised property. Any other use is not intended. 2-2(a)(iii) Summarize information sufficient to identify the real involved in the appraisal, including the physical, legal and economic property characteristics relevant to the assignment; Owner: 521 Boynton LLC 7790 Villa D'Este Way Delray Beach, FL 33446 Property Address: 521 Northeast 2 Street Boynton Beach, FL 33435 Legal Description: Lots 74 & 76, less the west 25 feet for road right- of-way, C W COPPS ADDITION, Plat Book 7, page 56, Palm Beach County, FL Census Tract No. 61 APPRAISAL REPORT (continued) 2-2(a)(iii) Summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal and economic characteristics relevant to the assignment; (continued) Real Estate Tax: Parcel Control Number: 08 43 45 2105 000 0740 Land Value: $10,000 Improvement Value: 77,231 Total Value: $87,231 Assessed Value: $87,231 Ad Valorem Tax: $ 1,904 Non Ad Valorem Tax: $ 394 Total Tax: $ 2298 No exemptions for this property. Properties are assessed in arrears by the county property appraiser. The tax bill is issued in November and a 4% discount is given to a tax payer if the amount is paid in November. The discount diminishes until March, when the tax is due and payable. In Florida, the taxable (assessed) value for non - homesteaded properties can be increased to a maximum of 10% per year, from tax year 2009 going forward, based on a constitutional amendment voted on by the electorate of the state. There are some exceptions which relate to school taxing districts. However, the millage of the city can increase; thus, real estate taxes can continue to increase from year to year. The 10% per year increase cap accounts for the difference between the Total Value of the appraised property and the Assessed Value. 0 APPRAISAL REPORT (continued) 2-2(a)(iii) Summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal and economic characteristics relevant to the assignment; (continued) Market Area Description: Boundaries and Market Composition & Transportation Infrastructure The general market area is the City of Boynton Beach in eastern -central Palm Beach County. Population of the city is about 72,000 residents; land area of the municipality is about 16 square miles situated between Delray Beach on the south and Lake Worth on the north. The town was named for an early developer, Nathan Boynton, a former major in the Union Army in the Civil War. The city was founded in 1898 and incorporated in 1920. Most of the original buildings were destroyed in the hurricane of 1926, though a few remain. Others which were constructed in the early 1920's are still in use with repairs and replacements over the decades. Time and economic trends take a toll on properties; thus, in 1984 a redevelopment plan was adopted for the Community Redevelopment Area (CRA) in the city. It covers 1,650 acres in the central part of the municipality west of the Intracoastal Waterway. One of the districts in the CRA is the immediate subject market area known as the Heart of Boynton (HOB), containing 380 acres. This area is the historic, older part of the CRA, with the following boundaries: Boynton Beach Canal (C-16) on the north, Florida East Coast (FEC) Railroad on the east, Interstate 95 on the west, and jagged line a few blocks north of Boynton Beach Boulevard as the south boundary, at about NE 3 Avenue. Agriculture and farming had been important activities in past centuries in Boynton Beach. Commerce came to the area when Henry Flagler extended the Florida East Coast Railway from West Palm Beach to Miami in 1896. The railroad was the main mode of transportation to bring visitors and manufactured products to the city as well as transporting produce grown in the vicinity out of the area to other cities in the southeastern United States. 10 APPRAISAL REPORT (continued) 2-2(a)(iii) Summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal and economic characteristics relevant to the assignment; (continued) Boynton Beach Boulevard is the principal east -west artery in the subject market area, having an interchange with Interstate 95 on the west side of the neighborhood. The boulevard continues west through Palm Beach County to its terminus at State Road 7/ U S Highway 441. Two miles east of State Road 7, it has an interchange with Florida's Turnpike. Boynton Beach Boulevard commences on the east at U S Highway 1, just to the east of the FEC Railroad. U S Highway 1 is the main north -south artery through eastern Palm Beach County and extends along the eastern seaboard of the United States. Seacrest Boulevard is a main north -south artery through the City of Boynton Beach and south into Delray Beach. Martin Luther King, Jr. Boulevard is an east -west thoroughfare through the Heart of Boynton. The immediate subject market area is easily accessible by main roads and Interstate 95. Property types in the Heart of Boynton are smaller commercial establishments along the main roads, light industrial close to the FEC Railroad, municipal facilities, single family residential, small multi -family dwellings, a few apartment buildings and places of worship. As mentioned, some structures date back to the 1920's, but most which are still usable were built in the mid -twentieth century. Municipal facilities in the immediate subject market area include parks, two elementary schools and a community center. Recent projects implemented in the Heart of Boynton are: • Seacrest Boulevard Streetscape • Carolyn Sims Center • Ocean Breeze West - 21 homes joint venture with Habitat for Humanity • Construction of single family residences on Martin Luther King, Jr. Boulevard 11 APPRAISAL REPORT (continued) 2-2(a)(iii) Summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal and economic characteristics relevant to the assignment; (continued) Future projects are: • Revitalization of Martin Luther King, Jr. Boulevard and surroundings • Redevelopment of the Public Works site • Establishment of mixed use districts of residential and commercial • Expansion of light industrial near the FEC Railroad • Widening and extension of NW 11 Avenue, west of Seacrest Boulevard. Population Trends The demographic survey in the beginning of the report of 1, 3, and 5 mile radial circles from the appraised property shows the median household income for 2016 in the one -mile radius is $42,061, for three miles it is $46,430, and $49,346 for the five mile circle. All are lower than the median household income for Palm Beach County of $54,400, and the east part of the circles include the residents all the way to the Atlantic Ocean. In the one -mile circle, population is 16,070. In three miles, population increases to 83,634; at five miles, it is 185,121. However, about one-third of the three and five mile circles are over the Atlantic Ocean. Annual growth rate is anticipated to be 1.12% to 1.89% in the three circles during the next five years as the economy and job market improves in South Florida, and new multi -family residential complexes are constructed. 52% of the housing units are owner occupied, with 29% rented. The percentage of renters is higher in this market because many of the single family houses are owned by investors who purchased them after the economic crash in 2008. Vacancy is reported to be 19%; however, this amount is high due to the undercount of the other two categories. Median home value in the five -mile area is $191,036, including the highly priced homes fronting the Atlantic Ocean and Intracoastal Waterway, compared to median home value of $198,891 in the United States. The life cycle stage of the market area is stability, a period of equilibrium without marked gains or losses, after a period of decline. 12 APPRAISAL REPORT (continued) 2-2(a)(iii) Summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal and economic characteristics relevant to the assignment; (continued) The purpose of the Heart of Boynton Community Redevelopment Plan is to revitalize the market area with new housing options and business opportunities. There are examples of new houses along Martin Luther King, Jr. Boulevard, with more planned in the immediate vicinity. Economic Trends During 2005-2006, the subject market area was experiencing a rise in property prices due primarily to the availability of financing with adjustable rate mortgages. Interest rates adjusted upward, but rental rates of multi -family properties did not. For single family residences, interest rates on mortgages adjusted upward, but homeowners' incomes did not increase. Scenarios were the same for many property types, all with the same result of owners' inability to make the payments and mortgages foreclosed. This situation was exacerbated by the economic crash in late 2008, followed by the Great Recession. The foreclosure cycle appears to be near the end. Currently, sales are between individuals or investors who previously purchased the properties from foreclosing lenders and private parties who will reside in the properties or hold them in their investment portfolios. Third party lenders are providing financing to investors and residents, at high loan to price ratios. Sale prices for single-family residences in the subject market area and close vicinity are in the range of $85,000 to $180,000, depending on building size, age and condition. Price range for multi -family dwellings are from about $50,000 to $100,000 per unit based on the same factors. Land unit prices are from about $4.00 to $7.00 per square foot. Family Dollar Store is an addition to the subject market area; it consists of an 8,100 square foot commercial building at the southeast corner of the signalized intersection of Martin Luther King, Jr. Boulevard and North Seacrest Boulevard. More revitalization in the CRA is taking place along US Highway 1, in the southern part of the corridor near Ocean Avenue and Boynton Beach Boulevard with projects such as 500 Ocean, with 341 residential units, 13,500 square feet of retail space and 6,000 square feet of office. Ocean One at 114 N Federal Highway is planned for 358 apartments, 12,075 square feet of retail, 120 hotel room and 439 parking spaces. 13 APPRAISAL REPORT (continued) 2-2(a)(iii) Summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal and economic characteristics relevant to the assignment; (continued) Conclusion The immediate subject market area of the Heart of Boynton (HOB) has the components of an appealing neighborhood with schools, parks and recreation. HOB is easily accessible by main roads and Interstate 95. Goods and services are nearby on Boynton Beach Boulevard and U S Highway 1. With the involvement of the City of Boynton Beach and the Community Redevelopment Agency, Heart of Boynton Community Redevelopment Plan can continue to succeed in revitalizing the area. Land Use: Current land use is Medium Density Residential, maximum density 9.58 dwelling units per acre Recommended Land Use is High Density Residential, with a density of 11 dwelling units per acre in multi -story structures. Greater density increases the production of the land. Zoning: "R-2", Single and Two-family Residential District with the purpose to implement the medium density residential future land use map classification of the comprehensive plan. The intent of the district is to stabilize and protect existing residential neighborhoods with density no greater than 10 dwelling units per acre, and allow limited types of non-residential uses. Minimum lot area is 4,500 square feet per unit for a duplex; minimum lot frontage is 75 feet. However, there is a provision for a site with two lots platted prior to the enacting of the current zoning regulation to be improved with a duplex. Single family dwellings shall be constructed on lots that are no less than 6,000 square feet with a width of at least 60 feet and follow the building and site regulations of the "R-1", Single Family District. Excerpts from the zoning codes are in the Addenda. 14 APPRAISAL REPORT (continued) 2-2(a)(iii) Summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal and economic characteristics relevant to the assignment; (continued) The appraised site is comprised of two lots platted in the 1920s. The width of the two lots together is 50 feet and a size of about 6,608 square feet. Since the lots were platted prior to the current zoning standards, they appear to be a legal non -conformity to be used as for a single family residence or for a duplex. However, determination of use and non - conformities of the site are made by Boynton Beach City officials. Parking: Two parking spaces are required for apartments with two or more bedrooms. Thus, four parking spaces would be required for the subject. There seems to be adequate land to comply with this requirement. Platting: The appraised land consists of two platted lot. Site Description: The shape of the site is rectangular. Approximate dimensions and size are from public records. North boundary on adjacent property: 132 feet East boundary on NE 2 Street: 50 feet South boundary adjacent property: 132 feet West boundary on NE 1 Street: 50 feet Total: 6,621 square feet or 0.1520 of an acre Utilities: All utilities are available to the site. Access: The site is accessible via NE 1 Street and NE 2 Street, both two laned, local roads with streetlights, but no sidewalks. 15 APPRAISAL REPORT (continued) 2-2(a)(iii) Summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal and economic characteristics relevant to the assignment; (continued) Easements: Easements are not noted on original plat. If they exist, utility easements would be most probably be around the perimeter of the lot. Encroachments: There is no sketch of survey to review to note if there are encroachments. Improvement Description: The appraised improvement is a one-story, two dwelling residence containing 1,444 square feet of enclosed area, constructed in 1958. Building sketch is in the Addenda. The appraisers did view the interior of the building. Average unit size is 722 square feet, divided into the following areas: living room, dining area, kitchen, two bedrooms and two bathrooms. Construction details are: Historical Age: 59 years Condition: Upgraded exterior and interior in the recent past, though no notices of commencement are recorded in the public records. Newer kitchens, bathrooms, light fixtures and ceiling fans. Foundation: Reinforced concrete slab over concrete footings Exterior Walls: Concrete block with concrete columns and tie beams; exterior finish is painted stucco Floors: Smooth concrete covered with ceramic tile or hardwood parquet 16 APPRAISAL REPORT (continued) 2-2(a)(iii) Summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal and economic characteristics relevant to the assignment; (continued) Interior Walls: Plaster over metal studs Roof System: Hip roof covered with tile Windows: Newer, storm impact single hung windows HVAC: Wall units, cooling only Plumbing: Four bathrooms, two kitchens Site Improvements: Asphaltic paving for car storage, wood fence, porches, sod and trees Environmental Assessment: No assessment was available for review. 2-2(a)(iv) State the real property interest appraised; A person who owns all the property rights is said to have fee simple title. A fee simple title implies absolute ownership unencumbered by any other interest or estate. Partial interests in real estate are created by selling, leasing, et cetera. Partial estates include leased fee and leasehold estates. The interest appraised is fee simple. 2-2(a)(v) State the type and definition of value and cite the source of the definition; The purpose of the appraisal is to develop an opinion of market value of the subject property as of April 1, 2017. 17 APPRAISAL REPORT (continued) MARKET VALUE: a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal. The conditions included in market value definitions establish market perspectives for development of the opinion. These conditions may vary from definition to definition but generally fall into three categories: 1. the relationship, knowledge, and inotivation of the parties (i.e., seller and buyer); 2. the terns of sale (e.g., cash, cash equivalent, or other terns); and 3. the conditions of sale (e.g., exposure in a competitive market for a reasonable time prior to sale). Market value appraisals are distinct from appraisals completed for other purposes because market value appraisals are based on a market perspective and on a normal or typical premise. These criteria are illustrated in the following definition of Market Value*, provided here only as an example. Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised and acting in what they consider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and S. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. * This example definition is from regulations published by federal regulatory agencies pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 between July 5, 1990, and August 24, 1990, by the Federal Reserve System (FRS), National Credit Union Administration (NCUA), Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), and the Office of Comptroller of the Currency (OCC). This definition is also referenced in regulations jointly published by the OCC, OTS, FRS, and FDIC on June 7, 1994, and in the Interagency Appraisal and Evaluation Guidelines, dated December, 2010. Florida Court Definition: "Market Value is the price that a seller willing, but not compelled to sell, and a buyer willing, but not compelled to buy, would agree to in fair negotiations with knowledge of all the facts." [Source: Fla. Power & Light Co., v. dennin s 518 So.2d 895 (Fla. 1987)] APPRAISAL REPORT (continued) 2-2(a)(vi) State the effective date of the appraisal and the date of the report; A) Effective Date of the Appraisal: April 1, 2017 B) Date of the Report: April 1, 2017 2-2(a)(vii) Summarize the scope of work used to develop the appraisal; The appraisal problem is to develop an opinion of value of the property based on its highest and best use. The appraiser inspected the property and photographed it. A thorough investigation was made into the physical characteristics of the property that could affect its value. The market area was surveyed to determine its stage of the life cycle. Research was conducted to ascertain economic factors that might influence value. Data research consisted of collecting, confirming, and reporting improved sales and rentals. The process included searches and analyses, inspections and confirmations, and final reporting. The appraiser examined several sources of sales data, including the multiple listing service, Palm Beach County Appraiser's records, the public records, and data from the appraiser's plant. For Sales Comparison Approach, improved sales are compared to each other and to the property under appraisement. Rentals rates of properties which are similar to the subject are reviewed to ascertain market rent for the units. The value opinions by the various techniques of the Sales Comparison Approach are reconciled into a final value. 2-2(a)(viii) Summarize the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales comparison approach, cost approach, or income approach must be explained; The information analyzed and appraisal method used is detailed in the valuation section of the report. Further, the reasoning that supports the analyses, opinions, and conclusions is explained in the valuation section. The Cost Approach is not used because of the age of the improvement. The Income Approach is not employed because owners of such properties typically do not manage the operations in a way which could be applied to a traditional Income Approach. Exclusion of these approaches to value still produces a creditable report. However, valuation by Gross Income Multiplier is included in the Sales Comparison Approach 19 APPRAISAL REPORT (continued) SR I-5 When the value opinion to be developed is market value, if such information is available in the normal course of business: a) analyze all agreements of sale, options, or listings of the subject property current as of the effective date of the appraisal; and There are no known agreements for sale, options or listings of the appraised property as of the effective date of the appraisal. b) analyze all sales of the subject property that occurred within the three (3) years prior to the effective date of the appraisal. The appraised property was acquired by warranty deed on September 30, 2014 for $125,000. A copy of the deed is in the Addenda. It appears from prior sales that this last transfer was made after the property was upgraded. Prior sales were $104,000 in September, 2014, $149,900 in May, 2011; $40,000 in February, 2011. 2-2(a)(ix) State the use of the real estate existing as of the date of value, and the use of the real estate or personal property reflected in the appraisal; The use of the real estate on the date of valuation is a two dwelling residential property, and it is this use which is reflected in the appraisal. No personal property is included in the valuation. 2-2(a)(x) When an opinion of highest and best use was developed by the appraiser, summarize the support and rationale for that opinion. HIGHEST AND BEST USE OF THE PROPERTY AS VACANT Physically Possible as Vacant No soil or subsoil tests are available for review. However, the site has been supporting a residential structure since the 1950s. The land is level and filled to street grade. Land size is approximately 6,621 square feet and rectangular in shape. All utilities are available to the site. The site is accessible via NE 1 Street and NE 2 Street. Physical constraint to develop the site is its size which governs the number of potential improvements which can be placed on it. HIGHEST AND BEST USE OF THE PROPERTY AS VACANT Legally Permissible as Vacant Legal restrictions to the development of the site consist of land use designation, building and zoning codes, platting restrictions and restrictive covenants. Land use designation is medium density residential, maximum density of 9.58 dwelling units per acre. Zoning is "R-2", Single family and Two-family Residential District in the City of Boynton Beach. Maximum number of dwelling units per lot in "R-2" district is two if the lot size meets current code. Since the appraised site consists of two lots platted prior to the current zoning code, there is the potential for it to be improved with a duplex. Alternatively, the site could be improved with a single family residence. Boynton Beach officials make the decisions as to the number of units which could be constructed on the parcel. The Boynton Beach CRA future land use plan for the appraised land and surrounding blocks is for High Density Residential of 11 dwelling units per acre. A land use change is required for the implementation of such a future plan. Financially Feasible as Vacant The third test of Highest and Best Use is economic feasibility. Demand for a certain property type must be evident for it to be feasible. For it to be financially feasible, the use must be marketable and provide the investor with a competitive return when compared with alternate uses. The immediate subject market area has been improved with single-family residences and small multi- family dwellings for almost 100 years. Residences come to the end of their economic lives, improvements are razed and the sites are redeveloped with modern structures. There are examples of this cycle throughout the subject market area. New redevelopment projects in the subject vicinity are Ocean Breeze West with 21 homes, Eastview Park with market rate houses ranging from $255,000 to $300,000 constructed by D R Horton, and four new houses on West Martin Luther King, Jr. Boulevard sold from $166,000 to $195,000. The four houses are the result of the work of the Boynton Beach CRA and Boynton Beach Faith -Based Community Development Corporation. 21 HIGHEST AND BEST USE OF THE PROPERTY AS VACANT Although, it appears that the subject site could be improved with two dwelling units, there are no new duplexes being constructed in the subject market area. The existing duplexes date back to the 1950s and 1960s, with small, functionally obsolete units. Single family homeownership is encouraged to build the community with permanent residents rather than populate it with transient occupants. As mentioned, community organizations are construction single family homes and selling them to people who will reside there. Financial assistance to the buyers is facilitating this plan. Financially feasible use of the subject site is to improve it with two residential units of as large a size as can meet the zoning standards. The most probably buyer would be a local investor familiar with the subject market area. Instead, the land could be improved with a single family residence which would better fit the community redevelopment plans of the neighborhood. The most likely buyer would be a community agency which would construct the single family residence then sell the land and house to an end-user. Maximally Productive as Vacant In summary, the current Highest and Best Use of the property appraised as vacant is for a two dwelling residence. Such uses would be physically possible, probably legally permissible, financially feasible and maximally productive. Otherwise, the site could be improved with a single family residence. HIGHEST AND BEST USE OF THE PROPERTY AS IMPROVED Physically Possible Improved The improvement appraised is a two dwelling residence constructed in 1958. It was upgraded in approximately 2011 following a distressed sale. The condition of the property is superior to others in the immediate subject market area. If necessary or desired, demolition is physically possible. 22 HIGHEST AND BEST USE OF THE PROPERTY AS IMPROVED Legally Permissible Improved A two dwelling residence appears to be legally permissible. There is sufficient space to have car storage for four vehicles. Financially Feasible Improved There is an active market for two dwelling residences in the subject market area in the price range of the appraised value. Exposure time to the market for these properties is short, typically a few weeks. Although, most of the sales are in cash, third party lenders are taking high loan to price mortgages on them. The appraised property is in better than average condition, being able to command a rental rate at the upper end of the market rental rate range of small multi -dwelling properties. From the property history record, it was purchased for a low price in 2011, making it financially feasible to spend the money to renovate it. After the renovation, the owner was able to sell it for a price near the top of the market in 2014. Further renovation is not physically warranted at this time. More upgrades to the property would make it an over - improvement in the immediate subject market area. Financial feasibility of the property as improved is to maintain it through repairs to the end of its useful life. Maximally Productive Improved The maximally productive use of the property as improved is its current use as a two dwelling residence, which use is physically possible, legally permissible, financially feasible, and maximally productive. 2-2(a)(xi) Clearly and Conspicuously: State all extraordinary assumptions and hypothetical conditions; and state that their use might have affected the assignment result. There are no extraordinary assumptions or hypothetical conditions in this report. 2-2(a)(xii) Include a signed certification in accordance with Standards Rule 2-3 See signed certification in report. 23 SALES COMPARISON APPROACH 24 Multifamily Sale 1: 522 NW 11 Avenue Multifamily Sale 3: 211 NW 7 Court S�S Multifamily Sale 2: 211 SE 4 Avenue Multifamily Sale 4: 229 NW 1 Avenue Multifamily Sale 5: 525 NE 2 Street PHOTOS OF MULTIFAMILY BUILDING SALES 25 MULTI -FAMILY BUILDING SALES SALE NO. LEGAL DESCRIPTION RECORDED GRANTOR GRANTEE DATE OF SALE LOCATION ZONING SALE PRICE PROPERTY DESCRIPTION UNITS OF COMPARISON FOLIO NUMBER CONDITIONS OF SALE CONFIRMATION COMMENTS I Lots 289 and 290, CHERRY HILLS, Plat Book 4, page 58 Palm Beach County Public Records. O.R. Book 28623, Page 638 of Palm Beach County Public Records Ring Holdings, LLC J & T Florida Investments, LLC September 26, 2016 522 NW 11 Avenue Boynton Beach, Florida "R-2", Single and two-family residential district $115,000 One-story CBS, duplex, constructed in 1973 containing 1,600 square feet of enclosed building area. The building consists one (2/1) unit rented at $650 per month and one (2/1) unit rented at $900 per month. Land size is 5,088 square feet. $71.88 per square foot of building, including land $57,500 per Unit 800 sq.ft. average unit size 6.18 Gross Income Multiplier 3.18:1 Land to Building Ratio 08-43-45-21-14-000-2890 Cash sale. Arm's length transaction. Ronen Rubin, broker for grantor This property is listed for sale again at $159,000, with a note that the duplex needs work. 26 MULTI -FAMILY BUILDING SALES SALE NO. 2 LEGAL DESCRIPTION The east 10 feet of Lot 13 and all of Lot 14, Block 6, BOWERS PARK, Plat Book 11, page 57, Palm Beach County Public Records RECORDED O.R. Book 28438, Page 661 of Palm Beach County Public Records GRANTOR Christopher J. Brebbia GRANTEE Harvest Home Fund, LLC DATE OF SALE June 28, 2016 LOCATION 211 SE 4 Avenue Boynton Beach, Florida ZONING "RI -A", Single family residential district SALE PRICE $115,000 PROPERTY DESCRIPTION One-story CBS, duplex, constructed in 1964 containing 1,276 square feet of enclosed building area. The building consists 2(1/1) units with rents averaging $750 per month. Land size is 7,405 square feet. UNITS OF COMPARISON $90.13 per square foot of building, including land $57,500 per Unit 638 sq.ft. average unit size 6.39 Gross Income Multiplier 5.80:1 Land to Building Ratio FOLIO NUMBER 08-43-45-28-12-006-0131 CONDITIONS OF SALE Cash sale. Arm's length transaction. CONFIRMATION David Walsh, listing broker COMMENTS Central air conditioning. Recently painted. Newer roof. 27 MULTI -FAMILY BUILDING SALES SALE NO. 3 LEGAL DESCRIPTION Lot 169, Block "C", BOYNTON HILLS, Plat Book 4, page 51, Palm Beach County Public Records RECORDED O.R. Book 28646, Page 1894 of Palm Beach County Public Records GRANTOR Terrence Pereira, et al GRANTEE Estrella LLC DATE OF SALE October 17, 2016 LOCATION 211 NW 7 Court Boynton Beach, Florida ZONING "R-2", Single and two-family residential district SALE PRICE $158,000 PROPERTY DESCRIPTION One-story CBS, duplex, constructed in 1959 containing 1,392 square feet of enclosed building area. The building consists 2(2/1) units with rents averaging $800 per month. Land size is 4,930 square feet. UNITS OF COMPARISON $113.51 per square foot of building, including land $79,000 per Unit 696 sq.ft. average unit size 8.23 Gross Income Multiplier 3.54:1 Land to Building Ratio FOLIO NUMBER 08-43-45-21-07-003-1690 CONDITIONS OF SALE Cash sale. Arm's length transaction. CONFIRMATION Michael Korman, listing broker COMMENTS The property is reportedly in average condition. MULTI -FAMILY BUILDING SALES SALE NO. 4 LEGAL DESCRIPTION South 75 of Lots 17 and 18 and the South 75 of the west half of Lot 19, Block 3, BOYNTON HEIGHTS REVISED, Plat Book 10, page 64, Palm Beach County Public Records. RECORDED O.R. Book 28560, Page 535 of Palm Beach County Public Records GRANTOR GRANTEE Todd Christensen Gregg Friedman DATE OF SALE August 26, 2016 LOCATION 229 NW 1 Avenue Boynton Beach, Florida ZONING "R -IA", Single family residential district SALE PRICE $144,500 PROPERTY DESCRIPTION One-story CBS duplex, constructed in 1955 containing 1,050 square feet of enclosed building area. The building consists 2(1/1) units with rents averaging $700 per month. Land size is 4,792 square feet. UNITS OF COMPARISON $137.14 per square foot of building, including land $72,250 per Unit 525 sq.ft. average unit size 8.60 Gross Income Multiplier 4.56:1 Land to Building Ratio FOLIO NUMBER 08-43-45-28-10-003-0171 CONDITIONS OF SALE Cash sale. Arm's length transaction. CONFIRMATION Jerilyn Walter, listing agent COMMENTS Reportedly, the property was in average condition at the time of sale. It is located between Boynton Beach Boulevard and Ocean Avenue. 29 MULTI -FAMILY BUILDING SALES SALE NO. 5 LEGAL DESCRIPTION Lots 78 and 80, less the west 25 feet for road, C W COPP'S ADDITION TO BOYNTON, Plat Book 7, page 56, Palm Beach County Public Records. RECORDED O.R. Book 28974, Page 1287 of Palm Beach County Public Records GRANTOR GSAMP Trust 2005-WMC2 GRANTEE Duckens Aristilde DATE OF SALE March 28, 2017 LOCATION 525 NE 2 Street Boynton Beach, Florida ZONING "R-2", Single and two-family residential district SALE PRICE $155,364 PROPERTY DESCRIPTION One-story CBS duplex, constructed in 1955 containing 1,876 square feet of enclosed building area. The building consists 2(2/2) units. Land size is 6,621 square feet. UNITS OF COMPARISON $82.82 per square foot of building, including land $77,682 per Unit 938 sq.ft. average unit size 3.53:1 Land to Building Ratio FOLIO NUMBER 08-43-45-21-05-000-0780 CONDITIONS OF SALE Cash sale. Arm's length transaction. CONFIRMATION Todd Faber, attorney for grantor COMMENTS Deutsche Bank acquired title in December, 2015 to this property by foreclosure of a mortgage which financed a prior purchase. A representative of the bank was the grantor of the most recent sale. The property was unoccupied and in fair condition when recently sold. As of the writing of this report, no notice of commencement was recorded to renovate the property. 30 i 0 wo Fly Ly" 00 00 i .� � 69 69 ff3 69 69 y O O O O N v) 00 i 69 69 69 69 69 s. 00 41 M O i i E~ E �► Lw" ~ �O �O 00 00 Ti V� ..moi w N O N 00 N \O N (n N 00 N N O M a N M N z� 00 o N N wN00 C, o w� 00 77 ,� ri s9 o s9 o s9 -- s9 o s9 0 0 d' 00 dpa Qpa spa dpa /�p� W�P=1 31 F 0 00 �+ a,+ 00� + + d' 0 wo Fly Ly" 00 00 i .c = 69 69 ff3 69 69 O "O .2 � i 00 + V� + V O O O O N 00 i Cd � � 69 69 69 69 69 O OM � w N 0000 N N O M N C, 00 C, v') v') v') � v') 77 00 ,� ri s9 o s9 o s9 -- s9 o s9 0 0 d' d pa Q pa s pa d pa /� p� W CZ kn kn kn N 32 SALES COMPARISON APPROACH OVERVIEW In the Sales Comparison Approach, the appraiser compares the appraised property to sales of similar properties. This approach to value simulates the actions and attitudes of typical buyers and sellers in the market. The approach is based on the Principle of Substitution that affirms the maximum value of a property is set by the cost of acquisition of an equally desirable and valuable substitute property, assuming no costly delays in making the substitution. The steps of this approach are: 1) Collect information of recent sales of properties most similar to the property being appraised. 2) Verify the sales information from the best available sources. 3) Select relevant units of comparison and develop a comparative analysis for each unit. 4) Adjust the sales to the subject using the significant, market -derived units of comparison. 5) Reconcile value indications from the comparisons into a value opinion by this approach. For the value opinion by this approach to be meaningful, there must be an adequate number of sales of similar properties for comparison to the subject. Data acquired in the Sales Comparison Approach such as rental amounts, vacancy factors, and expense ratios, are used in the Income Approach. A reliable Sales Comparison Approach sets a strong foundation for the entire value process. The property appraised is a two dwelling residence at 521 NE 2 Street, Boynton Beach, containing 1,444 square feet of enclosed area, constructed in 1958. Land size is approximately 6,621 square feet; zoning is "R-2", Single and Two-family residential district. UNITS OF COMPARISON Units of comparison are components into which a property may be divided for comparison. The purpose of using units of comparison is to relate sales of similar properties to the property being appraised on the basis of significant measures such as price per square foot, price per cubic foot, et cetera. The appropriate units of comparison come from the market. For the property appraised and the comparable sales, the pertinent units are: sale price per square foot of building, including land, sale price per unit and Gross Income Multiplier, GIM (sale price/ gross income). Continued 33 SALES COMPARISON APPROACH (Continued) ELEMENTS OF COMPARISON Elements of comparison are the characteristics ofproperties and transactions that cause the prices paid for real estate to vary. The Appraisal of Real Estate continues by stating that there are ten basic elements of comparison that should be considered in sales comparison analysis. The first group is termed transactional elements being: real property rights conveyed, financing terms, conditions of sale, expenditures made immediately after purchase and market conditions. The second group is property elements consisting of location, physical characteristics, economic characteristics, use, and non -realty components of value. Each is hereafter addressed. Real Property Rights Conveyed A transaction price is always predicated on the real property interest conveyed. Property interests conveyed can either be fee simple (without tenants) or leased fee (subject to leases). An adjustment for property rights conveyed is based on whether a leased fee interest was sold with leases at, below, or above market rent. When a property is sold without leases, its value is normally based on the market rent that it can command and the financing that could be obtained. The improved sales are rented to tenants on a short term basis of one year or less. The property interest conveyed in improved sales is fee simple, the same interest appraised for the subject. No numerical adjustment is warranted for this element of comparison. Financing Terms Financing terms may have a bearing on the price paid for a property. Such terms that may affect price include assuming a mortgage at lower than current interest rates, the seller paying a buydown for the buyer to have a lower interest rate, or the seller providing financing for a transaction at lower than typical institutional rates. In all of these cases, the buyer could have paid higher prices in such transactions to obtain favorable financing. The reverse is also a possibility in which lower sale prices result from above market financing. If financing affected the price paid, a cash equivalency adjustment is warranted. All of the improved sales were cash transactions, thus avoiding scrutiny of the properties by third parties. Since there were no financing terms to review, no adjustment is made for this element of comparison. Conditions of Sale Condition of sale addresses the motivation of buyers and sellers. Such motivations include a seller accepting a lower than market price for needed cash, a lender selling a previously foreclosed property to comply with regulations imposed on the institution, or a buyer purchasing an adjacent property. Even arm's length transactions may be the result of atypical motivation, such as lack of exposure time to the market, the result of an eminent domain proceeding, or tax consideration. 34 (Continued) SALES COMPARISON APPROACH (Continued) Improved Sale 5 is the resale of the property after the foreclosure of a mortgage which financed a prior transaction. This property was exposed to the open market for a reasonable period of time. With few two dwelling properties on the market for sale, the grantor of No. 5 seems to have been able to obtain a price which is in-line with other non -distressed transferred. Conditions of sale for the comparable properties were typical for the market; hence, no adjustments made. Expenditures Made Immediately After Purchase No major expenditures were made to the sales immediately after purchase. Market Conditions Comparable sales that occurred under different market conditions than those applicable to the subject on the effective date of the value estimate require adjustment for any differences that affect their value. The most common adjustment for market condition is time; however, the passage of time itself is not the cause of the adjustment. Market conditions which change over time are the reason to make the adjustment, such as appreciation or depreciation due to building inventory, changes in tax laws, investor's criteria, building moratoriums, fluctuation in supply and demand, et cetera. It is also possible that there is no change in market condition over time. Improved Sales 1, 2, 3, and 4 closed in 2016. There is an upward price trend in the market due to a strong economy and greater demand than supply of housing in the lower economic category. To recognize the change in market conditions in the past year, the unit prices for Improved Sales 1, 2, 3 and 4 are each adjusted upward 5%, with the result shown on the adjustment chart. Sale 5 is a very recent transaction, with no adjustment needed. Transactional adjustments were made for market conditions. Now, the improved sales are compared to the subject and to each other for the remaining property elements of comparison for possible adjustments. Location The location of a property is a key factor in prompting a buyer to purchase it. Location encompasses many aspects such as road frontage, access, proximity to other competing properties, proximity to a market that will use the goods and services housed in a property, governmental influences, et cetera. Typically, properties in a neighborhood share some of the same location characteristics such as age, condition, and style. However, there may be differences such as corner location, view, and zoning, to name a few. Properties of a similar type may be in different locations, yet the locations may share enough similarities to justify comparison. Factors of similarity between locations include average daily traffic counts, zoning and/or land use, and market composition. 35 (Continued) SALES COMPARISON APPROACH (Continued) The improved sales and appraised property are in the central section of the city of Boynton Beach. Zoning district for Improved Sales 1, 3, 5 and the appraised property is "R-2", permitting single and two-family residential, with greater flexibility of use than the "R -IA" single family district of Sales 2 and 4. The locational characteristic of the property concerned would put its unit value in the upper end of the range of the sale unit prices. Physical Characteristics Physical characteristics to be considered for adjustments are those that cause a difference in price to be paid by the market. A wide range of such items includes property type, building size, land size, land to building ratio, amount of parking, year of construction, current property condition, functional utility, market appeal, complete build -out of interior space, et cetera. Adjustments for physical characteristics are best derived from the market by paired sales comparison. The value added or lost by the presence or absence of a differing item in a comparable property does not usually equal the cost of installing or removing the item. Through the process of searching for comparable sales, the physical characteristics are of great import. From the universe of possible comparable sales, those that are most similar to the property appraised are presented in the report for analysis and comparison to the subject. The lesser the number of physical differences, the better. The improved sales have building sizes in the range of 1,050 to 1,876 square feet, with the subject mid-range at 1,444 square feet. Correspondingly, the subject unit size is in the middle of the data set. Obviously, owners and renters are looking for larger dwellings to accommodate their families and belongings. The lot size of the subject at 6,621 square foot is in the upper end of the range of the sales. The combination of a larger lot and mid-sized building results in a mid-range land to building ratio, with adequate outside space for parking. However, rental rates are more related to the size of the dwelling rather than to yard space. Dates of construction of the sales are from 1955 to 1973; date for the subject is 1958. As stated, the exterior and interior of the appraised property was upgraded around 2011. The physical characteristics of the appraised property would place its unit value in the upper end of the range of the sale unit prices. Economic Characteristics Economic characteristics of a property include its rental rate, occupancy rate, and expenses; which are the building blocks for the gross income multiplier and overall capitalization rate. Gathering information on the method of leasing, concessions given if any, expenses passed through to the tenants, lease terms, et cetera are important in arriving at the economic units of comparison for the sale. Inclusion of all expenses for the sale property that are incurred by the subject is necessary to arrive at an overall capitalization rate which is relevant to the property in question. 36 (Continued) SALES COMPARISON APPROACH (Continued) Gross income multiplier (sale price/ gross income) is the more reliable economic characteristic for small income properties. Income data can be readily obtained; however, expenses to develop a full income approach culminating in an overall rate are difficult to attain. Monthly rental rates for the sale properties and for units in the immediate neighborhood for two bedroom units are: $700.00, $750.00, $800.00, $850.00 and $900.00. The actual rental rate for the appraised units is $850.00 per month, near the upper end of the range, reflective of the better property condition. This rental rate is at the market level and used for the valuation. $850.00/ month x 2 units x 12 months = $20,400 annual gross income Gross income multipliers (GIM) for the sales are: 6.18, 6.39, 8.23 and 8.60. Improved Sales 3 and 4 with higher sale prices have the higher GIMs. The most appropriate GIM for the appraised property is 8.00. Use For properties to be comparable, they should have similar Highest and Best Uses. All of the improved sales cited in this report and the subject have the same Highest and Best Use as two dwelling residences, with no adjustment necessary. Non -Realty Components of Value Non -realty components of value include personalty, business concerns, or other items that do not constitute real property but are included in the sale price of either the comparable or the subject property. These components should he analyzed separately from the realty. There were no non -realty components of value to consider for the property appraised. FINAL VALUE OPINION Improved Sales 1, 2, 3 and 4 are adjusted upward for the transactional element of comparison of market conditions. The locational characteristics of the appraised property would put it in the upper end of the range of adjusted sale unit prices. The property is in above average condition, and the size of units is in the middle of the range. Physical characteristics also place the unit value of the subject in the upper end of the range. The final value per dwelling unit for the appraised property is $83,000. The overall size of the building places its unit value in middle -upper range of the price per square foot at $115.00. Actual gross monthly rent per dwelling is $850.00 or $20,400 annually for the entire property. The GIM is 8.0. The quantity of the comparable data is sufficient to have an overview of the market for smaller multi -family residential properties in the central -eastern Boynton Beach. The quality of the data is good in that it provides a sound basis to develop an opinion of value for the property under appraisement. Based on the analysis and conclusions presented within the report, it is our opinion that the Market Value of the Fee Simple Estate of the Subject Property as of April 1, 2017 is as follows. (Continued) 37 SALES COMPARISON APPROACH (Continued) VALUE BY PRICE/ DWELLING UNIT Two dwelling units x $83,000 per unit = $166,000 VALUE BY PRICE/ SQUARE FOOT 1,444 square feet x $115.00 per square foot of building including land = $166,000 VALUE BY GROSS INCOME MULTIPLIER $20,400 annual gross income x 8 GIM = $163,000 The value opinions by all three units of comparison are close and support each other. FINAL VALUE BY THE SALES COMPARISON APPROACH: 166 000 ONE HUNDRED SIXTY-SIX THOUSAND DOLLARS CERTIFICATION I certify that, to the best of my knowledge and belief, the statements contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions, and conclusions. I have no present or prospective interest in the property that is the subject of this report, and I have no bias or personal interest with the parties involved. The appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this report. I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. The analyses, opinions and conclusions were also developed and the report prepared in conformity with the Uniform Standards of Professional Appraisal Practice, which is included in the Appraisal Institute's Standards, and Chapter 475, Part 11 F.S. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. The use of this report is (also) subject to the requirements of the State of Florida relating to review by the Florida Real Estate Appraisal Board. I have visited the property that is the subject of this report on March 30, 2017. Jesse B. Vance, Jr. and Claudia Vance are responsible for the analyses, conclusions and opinions concerning real estate set forth in this report. No one else has provided significant professional service to the persons signing this report. The Appraisal Institute and the American Society of Appraisers each conduct programs of continuing education for their designated members. As of the date of this report, Jesse B. Vance, Jr. and Claudia Vance have completed the requirements of the continuing education program of the Appraisal Institute. Continuing educational requirements are also completed for the American Society of Appraisers and the State of Florida. April 1, 2017 Jesse B. Vance, Jr., MAI, SRA, ASA Florida State -Certified General Real Estate Appraiser No. RZ-85 April 1, 2017 Claudia Vance, MAI Florida State -Certified General Real Estate Appraiser No. RZ-173 39 CERTIFICATION AND LIMITING CONDITIONS The statements and conclusions contained in this report, subject to the limiting conditions hereafter cited, are correct to the best of the writers' knowledge. 1. The undersigned have personally visited the subject of this report. No pertinent information has been knowingly withheld. 2. Unless specifically included, the subject is analyzed as though free and clear of liens and encumbrances. 3. No responsibility is assumed for legal matters, nor is an opinion of title rendered. Title is assumed to be good and held in Fee Simple. 4. Legal descriptions and property dimensions have been fimrshed by others; no responsibility for their correctness is assumed. Sketches which may be in the report are for illustrative purposes only. 5. Possession of any copy of this report does not carry with it the right of publication, duplication, or advertising using the writers' names or professional designations or membership organizations. 6. The writers are not required to testify without prior agreement. 7. Neither the employment to make this appraisal nor compensation therefore is contingent on the value reported. 8. Improvements, if any, are those noted and reported on the date of inspection. 9. The value or values estimated apply ONLY as of the date of valuation stated within the report. 10. The writers certify that they have no present, past or contemplated interest in the subject of this report. 11. This report is the property of the indicated client. It may not be used by any other party for any purpose not consistent with the written fiinction of this report without the express written consent of the writers AND client. 12. The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conforniity with the requirements of the Code of Professional Ethics and the Standards of Professional Practice and Conduct of the Appraisal Institute. The work also conforms to the Uniform Standards of Professional Appraisal Practice. 13. The existence of potentially hazardous material used in the construction or maintenance of buildings, such as the presence of urea formaldehyde foam insulation, and/or existence of toxic waste, which may or may not be present on the property, has not been considered. Additionally, soil or sub -soil contamination may exist from current or prior users, or users outside the property concerned. The appraisers are not qualified to detect such substances. We urge the client to retain an expert in this field if desired. 14. The appraisers have not been provided a Habitat Survey, Endangered Species Survey, or analysis by a qualified environmental specialist indicating the presence of or proximity to environmentally sensitive and/or protected land or species which could affect the use, and possibly, value of the appraised property. The appraisers are not qualified to identify these factors. We recommend that an expert be hired where there may be reasonable cause to expect the presence of any of the cited elements. 15. Jesse B. Vance, Jr. and Claudia Vance were responsible for the analyses, conclusions, and opinions of real estate set forth in this report. (No one else provided significant professional assistance to the report signers). 16. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property would reveal that the property is not in compliance with one or more of the requirements of the act, which could reduce property value. 17. Prospective value estimates are based on current conditions and trends. The appraisers cannot be held responsible for unforeseeable events that might alter market conditions upon which market value has been estimated. 18. The appraisers certify that they have the knowledge and experience required to perform this appraisal assignment. 19. The appraiser reserves the right to amend or change this report at any time additional market information is obtained which would significantly affect the value opinion. Jesse B. Vance, Jr., MAI, SRA, ASA State -Certified General Real Estate Appraiser No. RZ 85 April 1, 2017 Claudia Vance, MAI State -Certified General Real Estate Appraiser No. RZ 173 April 1, 2017 .e] ADDENDA CFH 2OL40366704 OR BK 27076 PO 2269 THIS INS'T'RUMENT PREPARED BY AND RETURN TO,' RECUDED 10/43/2814 10: 5fi; 05 LES H. STEVENS, ESQUIRE Palle, Beach County, Florida LES H. STEVENS, P.A. AMT 125, 9M. 09 530.1 NORTH FEDERAL HIGHWAY, SUITE 130 Doc Stamp 875.00 BOCAIWON, FLORIDA 33487 Sharon R. Book, CLERK 4 CMPTROLLER Propq�wraisers Parcel ldaitification (Folio) Nwnbers: 08-43-45-21-0S-0 AM, upg 1 Q SPACE ABOVE THIS LINE FOR RECORDING DATA IV a TAT AIMNTYDEED THIS WA TY DEED, made the 30th day of September, 2014 by 2PLEX, LLC, A FLORIDA LIMITED LIABILITY ., h in called the grantor, to 521 BOYNTON, LLC, A FLORIDA LIMITED LIABILITY CO. whose post office addres VILLA .DIESTE WAY, DELRAY BEACH, FLORIDA 33446, hereinafter called the Grantee: (Wherever used here Tar "grantor° and "gmmee" include al! the pardes io Ws iimirument and the helm legal repnwWativea and assigns ofIndividuals, sora and assigns of empwadow) W i T N E S S E T H:'khat a grantor, for and in consideration of the sum of TEN AND 00/l00'S {510.00} Dollars and otber valuable considerations, vk@W whereof is hereby acknowledged, hereby grants, bargains. sells, aliens, remises, releases, conveys and confirms unto tee all that certain land situam in PALM BEACH County, State of Florida, viz.: Lots 74 and 76 (I. West 25.0 feet thereof), QW. COPTS ADDITION TO BOYNTON, according to the Piot th recorded in Plat Book 7, Page 56, of the Pathe Records of Palm Beach County, Florida a Subject to easements, restric ' ervotions of record and taxes for the year 2014 and tbereatter. TOG19THER, with all the tenements,rments and appurtenances thereto belonging or in anywise appertaining. TO HAVE AND TO BOLD, the same ' 'm le forever. AND, the grantor hereby covenants with tee that the Vwtar is lawfully seized of said land in fee simple; that the grantor bas good right and lawful authority to d convey said land, and hereby warrants the title to said land and will defend the same against the lawful claims of s whomsoever; and that said Iand is frce of all encumbrances, except taxes accruing subsequent to December 31, 2013. Q IN WITNESS WHEREOF, the said grantor has scaled these presents the day and year first above written. Signed, sealed and delivered in the presence of ltttess #1 Signature Witness #1 Printedgame AAW R. 6ai _ Witness 02 Si [? gn"� ��-�- jet rM•,Nr Witness #2 Printed Name STATE OF FLORIDA COUNTY OF PALM BEACH 2PLEX, LLC, A FLORIDA LIMITED LIABILITY By: HEATHER GR AUTHORIZED RXPRESXNTAT E The foregoing instrument was acknowledged before me this 30th day of September, 2014 by HEATHER GRIMES, AUTHORIZED REPRESENTATIVE of 2PLEX, LLC, A FLORIDA LIMITED WE111TY 00. onJmbalf of the corporation. He/She is personally known to me or has produced asidcndfi 'SEAL otary Si WOM"M •MO �� File No.: 14.1.46 Book27076/Page1289 Page 1 of 1 Page I of 2 Owner Name: 521 BOYNTON LLC Parcel Control Number: 08-43-45-21-05-000-0740 Location Address: 521 NE 2ND ST Description Year Built Units PATIO 1982 984 Unit may represent the perimeter, square footage, linear footage, total number or other measurement of the feature depending on the feature described. WTI T7v" E. R-2 Single and Two-family Residential District. 1. General. The purpose of the R-2 zoning district is to implement the medium density residential (MeDR) future land use map (FLUM) classification of the Comprehensive Plan. The intent of this conventional district is to stabilize and protect existing residential neighborhoods with densities no greater than ten (10) dwelling units per acre, and allowing limited types of non- residential uses. 2. Use(s) Allowed. See "Use Matrix Table 3-28" in Chapter 3, Article IV, Section 3.D. 3. Building and Site Regulations (Table 3-9). Existing and/or planned single-family homes shall conform to the R-1 district requirements; however, for duplex homes, the following lot and building requirements shall be observed: BUILDING/SITE REGULATIONS R-2 District Minimum lot area (per unit): 4,500 s.f.1 Minimum lot frontage: 75 feet Minimum yard setbacks: Front: 25 feet2 Rear: 25 feet3 Interior side: 10 feet2 Corner side: 25 feet2,3 Minimum living area: 750 s.f. Maximum lot coverage: 40% Maximum Floor Ratio Area (FAR) 0.104 Maximum structure height: 25 feet5 1 Single-family dwellings shall be constructed on lots that are no less than six thousand (6,000) square feet. 2 Pursuant to Section 8.B. below, parcels that have frontage on Martin Luther King Jr. Boulevard and are located within the Martin Luther King Boulevard Overlay Zone shall have front, side interior, and side corner setbacks in accordance with the mixed use -low intensity 1 zoning district (see Section 6.11. below). 3 On corner lots, the side setback adjacent to the street shall be not less than one-half (1/2) the front yard setback. However, where orientation of adjacent lots on both street frontages provide typical front yard setbacks, the comer lot shall provide for front yard setbacks along both streets. when two (2) front yard setbacks are provided for on a corner lot, no rear yard setback shall be required, only side yard setbacks shall be imposed. 4 A floor area ratio (FAR) up to 0.10 maybe considered for non-residential uses allowed within the R-2 district (see "Use Matrix" — Chapter 3, Article IV, Section 3), pursuant to the medium density residential land use category of the Comprehensive Plan. 5 Not to exceed two (2) stories. D. R-1 Single-family Residential District. 1. General. The purpose of the R-1 zoning district is to implement the moderate density residential (MoDR) future land use map (FLUM) classification of the Comprehensive Plan. The intent of this conventional district is to encourage single-family dwellings and structures at densities no greater than seven and one-half (7.5) dwelling units per acre, and allowing limited types of non-residential uses. 2. Use(s) Allowed. See "Use Matrix Table 3-28" in Chapter 3, Article IV, Section 3.1). 3. Building and Site Regulations (Table 3-8). The following lot and setback requirements shall be observed: BUILDING/SITE REGULATIONS R-1 District Minimum lot area: a 6,000 s.f. Minimum lot frontage: 60 feet Front: 25 feet Rear: 20 feet Special rear yard setback reduction for single -story building additions: I Abutting: I-95 or railroad tracks: 50% Abutting: Intracoastal: 50% Abutting: Lakes: 50% Abutting: Golf Course: 50% Abutting: Canals wider than 150 ft 50% Abutting: Canals narrower than 150 ft 33% Abutting: Perimeter walls of community that abut other than residential: Abutting: Commercial or Industrial 50% Abutting: Public or private park: 50% Interior side: 7.5 feet Comer side: 25 feet2 Minimum living area: 1,200 s.f. Maximum lot coverage: 50% Maximum structure height: 30 feet Q U x w C NO z z z z o 0 a w tn w w z z C 0 0 N N N kn y o YC a� YC a� O O ry a w w w v, O to O M y Q 00 O O o a� O o tn ^i Q' O O Q' x to z OO � N C kn z Q' O O Q' z z Q' O O Q' z 00z o o ¢ d to z C> 00tn z a� r Cd Cd on v to cd > C6 Q U � o .. 0 �, bye O �i Ow^ U oz 0 0'.2 > U as a o Z w'° z z z z z z z z 00 w w w w z z z z z w w w w z z z z z 00 z z z z z z z z N N N N O U z z z z z z z z O M N r— N O N / Fri O N O kn O to O to O kn M M O kn O kn 44 O N O by o 0 0 0 0 0 0 0 O kn O O O O O O O N N N <M N A4 o 0 0 0 0 0 0 0 M N -•� N N �n �n �n �n �n M �n �n yr Cd •.Ofir Cd � y bA y s, O cd to to 0-4 AC7 U U U w .. r� r� U rx U ---� EJ Sec. 11. Nonconforming Regulations. A. Lots and Parcels. 1. R-1 District, R -IA District, R-2 District, and R-3 District. A detached single-family dwelling may be constructed on any parcel located in an R-1, R-1 A, R-2, or R-3 district, provided that it meets all of the following requirements: a. The parcel contains at least one (1) whole platted lot, platted prior to August 7, 2001; b. The parcel, or assemblage of platted parcels which individually meet the requirements of paragraph a. above, has a frontage of not less than fifty (50) feet, and a lot area of not less than five thousand (5,000) square feet (irregular, other than rectangle -shaped lots with less than five thousand (5,000) square feet of area may be developed if in conformance with all other lot regulations); c. All such parcels, when developed, shall comply with all provisions of the Land Development Regulations and applicable building code regulations, including without limitation sections of the building code regulations regarding the impact of construction and drainage on or to adjacent properties. -- N 2. R-2 District. Within R-2 districts, in subdivisions platted prior to the effective date of these Regulations, where the platted lots have a frontage of at least forty (40) feet but less than fifty (50) feet, the following rules shall apply: a. A detached single-family dwelling may be constructed on any such parcel, provided that the parcel contains at least one (1) whole platted lot. b. A duplex dwelling may be constructed on any parcel, provided that it meets the following requirements: (1) The parcel contains at least two (2) whole platted lots; (2) Property cannot be acquired from adjacent parcels so as to make the subject parcel conforming, without causing the adjacent parcels to become nonconforming or more nonconforming. c. For any parcel, lot, or combination of lots, where the total frontage is equal or greater than one hundred twenty (120) feet, and the total area is greater than twelve thousand (12,000) square feet, said property shall not be developed except in accordance with the minimum frontage and lot area required in the R-2 zoning district. d. Ownership of parcels shall be determined by the property tax rolls on file in the Palm Beach County Property Appraiser's Office as of the effective date of these Regulations. 3. R- I AA District. A detached single-family dwelling may be constructed on any parcel located in an R-1 AA district, without requiring a variance, provided that it meets the following requirements: a. The parcel contains at least one (1) whole platted lot. b. The parcel has a frontage of not less than sixty (60) feet, and a lot area of not less than six thousand, seven hundred fifty (6,750) square feet in area. c. It would not be possible to acquire property from adjacent parcels so as to make the subject parcel conforming, without causing the adjacent parcels or structures thereon to become nonconforming or more nonconforming. For any parcel or lot, or combination of lots under the same ownership, where the total frontage and the total area is equal to or greater than that which is required by the R -IAA district building and site regulations, said property shall not be developed except in accordance with the minimum frontage and lot area required in the particular zoning district. Not more than one (1) parcel or lot, or combination of lots under the same ownership, that is nonconforming but which meets the requirements under b. above may be developed for a single- family house. ARTICLE V. MINIMUM OFF-STREET PARKING REQUIREMENTS Page 1 of 3 0 Sec. 2. Standards. A. General. 1. Rules and Methodology. a. Parking space requirements shall be computed on the basis of the principal use of a structure or lot, and using gross floor area unless stated otherwise in this article. Gross floor area, for the purposes of this subsection, shall include the floor area occupied by the principal use, plus the floor area occupied by all other enclosed spaces, including but not limited to storage rooms, maintenance and mechanical rooms, offices, lounges, restrooms, lobbies, basements, mezzanines, and hallways. b. Where several principal uses exist in one (1) structure or on one (1) lot, parking space requirements shall be computed separately for each principal use, unless stated otherwise in this article. Where parking spaces are required in this article for each of several principal uses that commonly occur together, this is done for the purpose of clarification only, and shall not limit the application of the requirement contained in this paragraph. c. A use shall be considered a principal use, for the purposes of this subsection, if it could exist separately from all other uses in the same structure or on the same lot, and would by itself generate significant parking demand. d. Where several principal uses exist in one (1) building or part of a building, and the floor area of each principal use cannot be clearly delineated, the parking space requirement for the use requiring the greatest number of parking spaces shall apply. e. Where a use is not listed below, parking space requirements shall be determined by the City Commission after review and recommendation by the Director of Planning and Zoning or designee. f. Where the number of required parking spaces as computed includes a fraction, the number of required parking spaces shall be the computed number rounded to the next highest whole number. g. Except as provided in Section 3.E. below, there shall be provided, at the time of the erection of any structure or establishment of any use, a number of off-street parking spaces in accordance with the following minimum requirements, and subject to the parking requirements of this subsection. Where a structure or use is enlarged or increased in capacity by any means, including a change in building occupancy which requires the provision of additional parking spaces, or a change in use to or which requires additional parking spaces, the minimum number of parking spaces shall be computed by applying these requirements to the entire structure or use. 2. Minimum Number of Required Off -Street Spaces for Non -Residential Uses. No fewer than four (4) parking spaces shall be provided for any non-residential use. 3. Location of Off -Street Parking Areas. a. Residential. Required parking spaces for all dwellings shall be located on the same lot as the dwelling to be served. b. Non-residential. Required parking spaces for all non-residential uses shall be owned by the owner of the building or lot to be served, and shall be located on the same lot, or not more than three hundred (300) feet distance, unless the property is located within those areas defined within the adaptive re -use section of the Code (Chapter 4, Article 5, Section 4). In those areas, required parking spaces may be leased within three hundred (300) feet of the use in which they serve, subject to Board and City Commission approval, and the property shall be posted with signage indicating to patrons the location of the leased parking. B. Table 4-17. Residential and Lodging Uses. I Residential and Lodging Uses I Standard Number of Required Parking Spaces http://www.amlegal.cominxtlgateway.dlllFlorida/boynton/partiiilanddevelopmentregulation... ARTICLE V. MINIMUM OFF-STREET PARKING REQUIREMENTS Page 2 of 3 Building area size is based upon gross floor area (in square feet) unless specifically expressed otherwise. Single-family, duplex dwelling, or mobile home: 21 Efficiency or one (1) -bedroom apartment: 1.51,2 Within mixed use high district: 1.332 Two (2) or more bedroom apartment: 21,2 Within mixed use high district: 1.661'2 Dormitories: 1 per unit Hotel & motel units containing one (1) -bedroom: 1.25 per unit Within mixed use high district: 1 per unit Hotel & motel suite containing two (2) or more bedrooms: 2 per unit Within mixed use high district: 1 per unit Group home (types 1 through 4): 1 per 3 beds Bed & breakfast: 13 Live/work unit: 1 per 2 units4 1 Residential driveways shall satisfy the parking space requirements for single-family detached dwelling units, duplexes, and multi -family dwelling units containing garages, provided such driveways are of sufficient size to meet the parking space requirements of this subsection. A residential driveway of sufficient size shall be provided prior to the issuance of a certificate of occupancy. For all required parking spaces not located within an enclosed garage, the first parking space shall be the minimum size required for a handicap space, exclusive of public or private rights-of-way, and all other required spaces must be dimensioned in accordance with current city standards. All driveways shall be setback at least two (2) feet from interior side and corner side property lines, and maintained and drained so as to prevent nuisance conditions or a danger to the public and/or adjacent property owners. Any expansion to an existing driveway shall require a zoning permit from the Planning and Zoning Division in accordance with the procedures specified in Chapter 2, Article II, Section S.B.; however, any driveway expansion (or similar impervious surface) that is equal to or greater than eight hundred (800) square feet shall require the approval of a land development permit in accordance with Chapter 2, Article III, Section 3. Any work, such as a driveway, proposed within the swale (right-of-way) shall require a permit from the Engineering Division in accordance with the procedures specified in Chapter 2, Article III, Section 4. 2 Guest parking shall be provided at a rate of 0.15 spaces per unit for residential developments consisting of three (3) or more dwelling units. 3 Required parking shall be calculated on the basis of one (1) space per each employee, manager, or owner and one (1) parking space for each guest unit. Newly created parking may be located only in the rear and side yard. http://www.amlegal.cominxtlgateway.dll/Florida/boynton/partiiilanddevelopmentregulation... ARTICLE V. MINIMUM OFF-STREET PARKING REQUIREMENTS Page 3 of 3 4 In addition to the required parking for the residential unit, the city requires that one (1) parking space per two (2) live/work units be provided to meet business activity needs. Parking provided to meet this requirement shall be located on the lot, built into or under the structure, or within three hundred (300) feet of the unit in which the use is located. The distance shall be a straight line measurement from a point on the boundary line of the property of the subject unit to the closest boundary line of the property on which the parking is located. Parking provided to accommodate said space, including driveways of adequate depth in front of the unit's garage, shall not serve as meeting required parking for the unit's residential use. http://www.amlegal.cominxtlgateway.dll/Florida/boynton/partiiilanddevelopmentregulation... 1/8/2015 This is an APPRAISAL REPORT that complies with Standard Rule 2-2(a) of Uniform Standards of Professional Appraisal Practice (USPAP: 2016-2017) (a) The content of an Appraisal Report must be consistent with the intended use of the appraisal and, at a minimum: (i) state the identity of the client and any intended users, by name or type; (ii) state the intended use of the appraisal; (iii) summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal and economic property characteristics relevant to the assignment; (iv) state the real property interest appraised; (v) state the type and definition of value and cite the source of the definition; (vi) state the effective date of the appraisal and the date of the report; (vii) summarize the scope of work used to develop the appraisal; (viii) summarize the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales comparison approach, cost approach, or income approach must be explained; (ix) state the use of the real estate existing as of the date of value and the use of the real estate reflected in the appraisal; (x) when an opinion of highest and best use was developed by the appraiser, summarize the support and rationale for that opinion; (xi) clearly and conspicuously: ■ state all extraordinary assumptions and hypothetical conditions; and ■ state that their use might have affected the assignment results; (xii) include a signed certification in accordance with Standards Rule 2-3. Standards Rule 1-5 When the value opinion to be developed is market value, an appraiser must, if such information is available to the appraiser in the normal course of business: (a) analyze all agreements of sale, options, and listings of the subject property current as of the effective date of the appraisal; and (b) analyze all sales of the subject property that occurred within the three (3) years prior to the effective date of the appraisal. 475.611 Florida Statutes: Definitions. -- (1) As used in this part, the term: (a) "Appraisal" or "appraisal services" means the services provided by certified or licensed appraisers or registered trainee appraisers, and includes: 1. "Appraisal assignment" denotes an engagement for which a person is employed or retained to act, or could be perceived by third parties or the public as acting, as an agent or a disinterested third party in rendering an unbiased analysis, opinion, review, or conclusion relating to the nature, quality, value, or utility of specified interests in, or aspects of, identified real property. 2. "Analysis assignment" denotes appraisal services that relate to the employer's or client's individual needs or investment objectives and includes specialized marketing, financing, and feasibility studies as well as analyses, opinions, and conclusions given in connection with activities such as real estate brokerage, mortgage banking, real estate counseling, or real estate consulting. 3. "Appraisal review assignment" denotes an engagement for which an appraiser is employed or retained to develop and communicate an opinion about the quality of another appraiser's appraisal, appraisal report, or work. An appraisal review may or may not contain the reviewing appraiser's opinion of value. (b) "Appraisal Foundation" or "foundation" means the Appraisal Foundation established on November 20, 1987, as a not-for-profit corporation under the laws of Illinois. (c) "Appraisal report" means any communication, written or oral, of an appraisal, appraisal review, appraisal consulting service, analysis, opinion, or conclusion relating to the nature, quality, value, or utility of a specified interest in, or aspect of, identified real property, and includes any report communicating an appraisal analysis, opinion, or conclusion of value, regardless of title. However, in order to be recognized in a federally related transaction, an appraisal report must be written. (d) "Appraisal review" means the act or process of developing and communicating an opinion about the quality of another appraiser's appraisal, appraisal report, or work. (e) "Appraisal subcommittee" means the designees of the heads of the federal financial institutions regulatory agencies established by the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. ss. 3301 et seq.), as amended. (f) "Appraiser' means any person who is a registered trainee real estate appraiser, licensed real estate appraiser, or a certified real estate appraiser. An appraiser renders a professional service and is a professional within the meaning of s. 5.11(4)(a). (g) "Board" means the Florida Real Estate Appraisal Board established under this section. (h) "Certified general appraiser" means a person who is certified by the department as qualified to issue appraisal reports for any type of real property. (i) "Certified residential appraiser" means a person who is certified by the department as qualified to issue appraisal reports for residential real property of one to four residential units, without regard to transaction value or complexity, or real property as may be authorized by federal regulation. Q) "Department" means the Department of Business and Professional Regulation. Page 1 of 5 Vance Real Estate Service Jesse B. Vance, Jr., MAI, SRA, ASA, MBA Appraiser - Real Estate Analyst - Reviewer - Expert Witness Vance Real Estate Service - 7481 NW 4 Street - Plantation - Florida - 33317 Office: 954.583.2116; Cell: 954.610.2423; Email: vancevalgcomcast.net Web Page: www.vancerealestateservice.com Vance Real Estate Service is a Veteran -Owned Small Business (VOSB) and Florida Certified SDVBE Minority Business Enterprise specializing in personalized real estate valuation services in Florida for over 35 years. Currently registered in "SAM" (U.S. Government System for Award Management — DUNS 826494957). Designated appraisers perforin the appraisal work, no trainees. Jesse B. Vance, Jr., MAI, SRA, ASA, MBA and Claudia Vance, MAI are qualified as expert witnesses for eminent domain, bankruptcies, deficiency judgments, marriage dissolution, and estate valuations. Our firm values most types of real property interests for sale, mortgage loans, litigation and investment reasonably, timely and professionally. As licensed real estate brokers, we perforin most other real property functions. We also do "Valuations for Financial Reporting." PROFESSIONAL QUALIFICATIONS A) PROFESSIONAL DESIGNATIONS/ DEGREES/ LICENSES & CERTIFICATIONS MAI DESIGNATION - APPRAISAL INSTITUTE/Life Member No. 8781 SRA DESIGNATION - APPRAISAL INSTITUTE/Life Member No. 8781 ASA DESIGNATION - AMERICAN SOCIETY OF APPRAISERS (RE -Urban) 4003439 MBA DEGREE - REAL ESTATE MANAGEMENT AND DEVELOPMENT STATE -CERTIFIED GENERAL REAL ESTATE APPRAISER 4RZ-85 (Florida) FLORIDA STATE LICENSED REAL ESTATE BROKER NO. BK. 91050 REGISTERED VETERAN -OWNED SMALL BUSINESS (CCR/Duns 826494957) FLORIDA CERTIFIED SDVBE BUSINESS ENTERPRISE (Minority Business Enterprise - MBE) FLORIDA "D.E.P." APPROVED APPRAISER Currently registered in "SAM" (U.S. Governinent System for Award Management). B) QUALIFIED AS AN EXPERT WITNESS IN REAL ESTATE VALUATION 1. U.S. Court of Appeals, Eleventh Circuit 2. U.S. District Court, Southern District of South Florida 3. U.S. District Court, New Jersey 4. U.S. Bankruptcy Court, Southern District of Florida 5. U.S. Bankruptcy Court, District of New Jersey 6. U.S. Bankruptcy Court, Western (Pittsburgh) Division of Pennsylvania 7. Florida Circuit Courts: Broward, Dade, Patin Beach, Lee, Collier, Martin, and Okeechobee Counties 8. Appraiser on landmark eminent domain cases: TESSLER, NESS TRAILER PARK, PATEL, SIMPSON v. FILLICHIO, RUBANO, PALM BEACH COUNTY (FL) vs. COVE CLUB INVESTORS, LTD. C) EXPERIENCE Over thirty-five (35) years appraising and analyzing real property interests in South Florida. Partial list: RESIDENCES, RESTAURANTS/BARS, APARTMENT BUILDINGS, OFFICE BUILDINGS HOTELS/MOTELS, CHURCHES, CONDOMINIUMS/COOPS, HOSPITALS & NURSING HOMES, VACANT LAND, GOLF COURSES, GOLF CLUBS, GASOLINE SERVICE STATIONS, MARINAS, TRAILER PARKS, SHOPPING CENTERS, BANKS/THRIFT INSTITUTIONS, BOWLING ALLEYS, P.U.D.'S, INDUSTRIAL BUILDINGS, TIME-SHARE DEVELOPMENTS, ROCK PITS, SCHOOLS, AGRICULTURAL PROPERTIES, WATER MANAGEMENT DISTRICT, MARKETABILITY, FEASIBILITY ANALYSES, INVESTMENT ANALYSES, AUTO SALES FACILITIES, LEASE VALUATIONS, TAX & ASSESSMENT APPEALS, CONDEMNATION, EXPERT WITNESS (Member National Forensic Center), BUSINESS ENTERPRISE VALUATIONS (BEV), (VFR) VALUATION FOR FINANCIAL REPORTING, AVIGATION & CLEARANCE EASEMENTS, ESTATES, DIVORCES, PLANNING/LAND USE STUDIES, HIGHEST & BEST USE ANALYSES, DEPRECIATION ANALYSES, COMPONENT APPRAISALS, ENVIRONMENTALLY SENSITIVE LAND, CONTAMINATED PROPERTIES, SUGARCANE & TURFGRASS LAND, DAY CARE CENTERS, SELF -STORAGE FACILITIES, FUNERAL HOMES, ANIMAL HOSPITALS, SUBMERGED LAND, CITY CENTERS, etc. Page 2 of 5 D) PARTIAL LIST OF CLIENTS PRIVATE INDIVIDUALS AND CORPORATIONS, ATTORNEYS, ACCOUNTANTS, TRUST DEPARTMENTS, COMMERCIAL BANKS: Wells Fargo; BankAtlantic; SunTrust; American National Bank; Landmark Bank; City National Bank; BankUnited; Gateway American Bank; State Farrn Bank; Englewood Bank & Trust; SAVINGS & LOANS, INSURANCE COMPANIES, REAL ESTATE INVESTMENT TRUSTS, & REAL ESTATE TRANSFER COMPANIES, TITLE INSURANCE COMPANIES; FLORIDA CITIES: FORT LAUDERDALE, PLANTATION, COOPER CITY, TAMARAC, LAUDERHILL, BOCA RATON, DEERFIELD BEACH, OAKLAND PARK, WILTON MANORS, HOLLYWOOD, WEST PALM BEACH, DELRAY BEACH, HALLANDALE, PEMBROKE PINES, COOPER CITY, TOWN OF DAVIE, TOWN OF SOUTHWEST RANCHES, MIRAMAR. FLORIDA COUNTIES: BROWARD, PALM BEACH, COLLIER, OKEECHOBEE; BROWARD COUNTY BOARD OF COUNTY COMMISSIONERS; OKEECHOBEE BOARD OF COUNTY COMMISSIONERS. SCHOOL BOARD OF BROWARD COUNTY, FLORIDA, BROWARD COUNTY HOUSING AUTHORITY, STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION (DOT); STATE OF FLORIDA DIVISION OF GENERAL SERVICES(GSA); N. BROWARD GENERAL HOSPITAL DISTRICT; STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION (Approved Vendor);U_S. TREASURY DEPARTMENT (General Counsel, I.R.S.); U.S. MARSHAL'S SERVICE —U.S. ATTORNEY'S OFFICE CENTRAL DIVISION —U.S. Dept. of Justice; VETERANS ADMINISTRATION E) EDUCATIONAL BACKGROUND - (Partial List) BACHELOR OF ARTS - Earlham College, Richmond, Indiana (1954) MBA (Nova University) - Real Estate Management & Development (National Dean's List 1991) Course 1 (AIREA) - Basic Principles of Appraising Course 2 (AIREA) - Urban Property Valuation (Income) Course 4 (AIREA) - Condemnation Appraising Course 6 (AIREA) - Income Capitalization & Analysis Course 101 (SREA) - Introduction to Appraising Course 201 (SREA) - Income Property Valuation, Theory Course 202 (SREA) - Applied Income Property Valuation Course 301 (SREA) - Applications/Appraisal Analysis Symposium (SREA) - Market Analysis, 1978, Virginia Symposium (SREA) - Market Analysis, 1979, Arizona Symposium (SREA) - Market Analysis, 1980, South Carolina Symposium (SREA) - Market Analysis, 1981, Tennessee Symposium (SREA) - Market Analysis, 1982, New Mexico Symposium (SREA) - Market Analysis, 1983, Pennsylvania Symposium (SREA) - Market Analysis, 1984, Georgia Symposium (SREA) - Market Analysis, 1985, Vancouver, B.C. Symposium (SREA) - Market Analysis, 1986, New Jersey Clinic (SREA) - #201 Instructor, 1987, U. of Illinois Clinic (SREA) - #201 Instructor, 1988, Illinois Seminar (SREA) - Professional Practice, 1988, Florida Symposium (SREA) - Market Analysis, 1988, California Symposium (SREA) - Market Analysis, 1989, Minnesota MBA Graduate School Courses: 1990 — 1991 Successfullv completed the followine eraduate school courses - "Regulation of Real Estate Development" - "Real Properties Management" - "Legal Issues In Real Estate" - "Market Analysis and Site Selection" - "Organizational Behavior and Management"' - "Human Resource Management" - "Real Estate Economics" - "R. E. Finance: Instruments, Institutions & Investment Analysis" - "Urban Infrastructure & Environmental Analysis" - "Real Estate Accounting" - "Marketing Management for Real Estate" - "Commercial Real Estate Lending" - "Construction Technology and the Building Development Process" SEMINAR (AI) - Cost Approach (1992/Boston) SEMINAR (AI) - Rates & Ratios (1992/Boston) SEMINAR (AI) - International Appraising (1992/Boston) SEMINAR (AI) - Litigation Valuation/Mock Trial (1993) SEMINAR (AI) - ADA ACT (1993/Reno) SEMINAR (AI) - Hotel Valuation (1993) SEMINAR (AI) - Income Capitalization, Methods (1993) SEMINAR (AI) - Powerlines/Electromagnetic Radiation (1994) SEMINAR (AI) - Verifying Market Data (1994) SEMINAR (AI) - Market Studies for Appraisals (1994) SEMINAR (AI) - Florida Appraiser Core Law (USPAP/1994) Page 3 of 5 E)EDUCATIONAL BACKGROUND - (Partial List, continued) SEMINAR (AI) - Limited Appraisals & Reports (USPAP/1994) SEMINAR (AI) - Public Safety & Property Values (1995) SEMINAR (AI) - Outparcel Valuation (1995) SEMINAR (AI) - Computer Technology Video Conference (1995) SEMINAR (AI) - The Internet & the Appraiser (1996) SEMINAR (AI) - Florida Commercial Construction (1996) SEMINAR (AI) - Real Property Rights in Florida (1996) COURSE (AI) - USPAP & Florida Real Estate Core Law (1996) SEMINAR (AI) - Valuation of Trees (199 7) 3 -DAY COURSE - Environmental Permitting/Mitigation/Mitigation Banking/Contamination Risk Management- Liability/Wetlands/Hazardous Wastes/LenderLiability (1997/Marco Beach. FL) SEMINAR (AI) - Valuation of Transferable Development Rights [TDR's] (1997) COURSE (AI) - Standards of Professional Practice, Part C, 15 hour Course #430 (1997) SEMINAR (AI) - Non -Conforming Uses (1998) SEMINAR (AI) - The Impact of Contamination on Real Estate Value (1998) COURSE (AI) - USPAP & Florida Real Estate Core Law (1998) SEMINAR (AI) - Econometrics/Statistical Valuation Methods (1999) COURSE (AI) - 14 Hour (2 -day) Advanced Spreadsheet Modeling for Valuation Applications SEMINAR (AI) - Globalization of Real Estate/What U.S. Appraisers Need to Know (1999) SEMINAR (AI) - The Role of the Appraiser in Alternative Dispute Resolution (Mediation/Arbitration) (1999) SEMINAR (AI) - Technology Forum Part II/Intermediate (1999) SEMINAR (AI) - Client Satisfaction/Retention/Development (1999) SEMINAR (AI) - Attacking and Defending an Appraisal (1999) SEMINAR (AI) - Federal Appraisal Requirements ("Yellow Book') (2000) SEMINAR (AI) - Regression Analysis in Appraisal Practice: Concepts & Applications (2000) SEMINAR (AI) - Analyzing Income Producing Properties (2000) SEMINAR (ATIF) - 1031 Tax Deferred Exchanges (2000) COURSE (AI) - USPAP & Florida Real Estate Core Law (2000) SEMINAR (AI) - Mediation & Alternate Dispute Resolution Seminar (2001) SEMINAR (AI) - State of the Appraisal Profession (2001) 2 -Day SEMINAR - Eminent Domain, by CLE International, Tampa, Florida (2001) SEMINAR (AI) - Ad Valorem Assessment Process in Florida (2002) SEMINAR (AI) - Role of Real Estate Appraisers in Bankruptcy Proceedings (2002) SEMINAR (AI) - Appraisers & the Gramm -Leach -Bliley Federal Privacy Act (2002) SEMINAR (AI) - How to Appraise the Ugly House (2002) COURSE (AI) - 2 -Day Course #430, Standards of Professional Practice, Part C (2002) SEMINAR (AI) - Market Trends for 2003 (2003) SEMINAR (AI) - Update on Code of Professional Ethics (2003) PANEL (AI) - Moderator "Industry, Consumer & Congressional Views on Predatory Lending" D.C. (2003) SEMINAR (AI) - Florida State Law for Real Estate Appraisers (2003) SEMINAR (AI) - Appraisal Agreements (2003) SEMINAR (AI) - Analyzing Distressed Real Estate (2004) SEMINAR (AI) - Valuation for Financial Reporting Purposes (2004) SEMINAR (AI) - 7 Hour National USPAP Update Course #1400 (2004) SEMINAR (AI) - Inverse Condemnation (2004) SEMINAR (AI) - Appraiser Independence in the Loan Process (2004) SUMMIT (AI) - Moderator at 2 -day Appraisal Summit in Washington, D.C. (12/2004) SEMINAR (AI) - Loss Prevention Program for Real Estate Appraisers (2005) SEMINAR (AI) - Valuation of Wetlands (7/2005) SEMINAR (AI) - Tri -County Residential Symposium (8/2005) SEMINAR (AI) - "Cool Tools" Internet Resources and Use for Valuation (2/2006) SEMINAR (AI) - FREAB 7 -Hour National USPAP Update (5/2006) SEMINAR (AI) - FREAB 3 -Hour Florida State Law for Real Estate Appraisers (5/2006) SEMINAR (AI) - USPAP Scope of Work & New Requirements (8/2006) SEMINAR (AI) - USPAP Reappraising, Readdressing & Reassigning Appraisal Reports (2/2007) SEMINAR (AI) - Al Summary Appraisal Report/Residential (4/07) COURSE (Fla.) -14-Hour Continuing Education (including 3 -Hour Florida Core Law) (7/2007) SEMINAR (AI) - Real Estate Fraud: Appraisers Beware! (8/2007) SEMINAR (AI) - Florida Law for Real Estate Appraisers (11/2007) COURSE (AI) - Business Practices and Ethics — 8 hours (12/2007) SEMINAR (AI) - Supervisor Trainee Roles and Rules (2/2008) SEMINAR (AI) -7 Hour National USPAP (4/2008) SEMINAR (AI) - USPAP Hypothetical Conditions & Extraordinary Assumptions (5/2008) SEMINAR (AI) - Litigation Skills for the Appraiser — 7 -Hour Seminar (9/2008) SEMINAR (AI) - Public Sector Appraising (2/2009) Page 4 of 5 E) EDUCATIONAL BACKGROUND - (Partial List, continued) WEBINAR (AI) - Develop an Effective Marketing Plan (3/2009) SEMINAR (AI) - Inspecting the Residential "Green House" (4/2009) SEMINAR (AI) - Property Tax Assessment (5/2010) SEMINAR (AI) - Supervisor Trainee Roles and Rules (7/2010) SEMINAR (AI) - Florida Law for Real Estate Appraisers (7/2010) SEMINAR (AI) - 7 -Hour Introduction to Valuation for Financial Reporting — Chicago (5/2009) SEMINAR (AI) - Government Regulations & Their Effect on R.E. Appraising (8/2009) SEMINAR (AI) - R.E.Market: How We Got Here, Where We Are, Where We're Going (10/2009) SEMINAR (AI) - 7 Hour National USPAP Update Course (10/1/2010) COURSE (AI) - 7 Hour Introduction to Conservation Easement Valuation (12/10/2010) SEMINAR (AI) - The Real Estate Market (2/18/2011) COURSE (AI) - 16 Hours Uniform Appraisal Standards for Federal Land Acquisitions ("Yellow Boob') (2/25-26/2011) WEBINAR (AI) - Real Estate Industry Perspectives on Lease Accounting (4/7/2011) COURSE (AI) - 15 Hour Appraisal Curriculum Overview (5/19-20/2011) WEBINAR (AI) - 2 -hour Investment Property Accounting Standards (6/8/2011) SEMINAR (AI) - 3 Hour Spotlight on USPAP — Agreement for Services (7/15/2011) COURSE (AI) - 14 Hours (2 -day) Advanced Excel Spreadsheet Modeling for Valuation Applications (9/22 & 9/23/2011) SEMINAR (AI) - Trial Components (11/4/11) SEMINAR (AI) - Lessons from the Old Economy Working in the New (1/20/2012) 7 -Hour USPAP - National USPAP Update (3/9/2012) 3 -Hour Fla. Law - State Law Update (3/9/2012) SEMINAR (AI) - Appraisal Review for General Appraisers (4/12/2012) SEMINAR (AI) - Land Valuation (4/20/2012) SEMINAR (AI) - The Valuation of Warehouses (6/22/2012) SEMINAR (AI) - Town Hall Meeting: 2012 Appraisal Institute Forum (7/12/2012) SEMINAR (AI) - IRS Valuation (7/19/2012) SEMINAR (AI) - 7 Hour Business Practices and Ethics Course (12/7/2012) SEMINAR (AI) - Real Estate Forecast 2013 (1/25/2013) COURSE (AI) - 7 Hour Advanced Marketability Studies (5/6/2013) SEMINAR (AI) - Developing a Supportable Workfile (11/15/2013) SEMINAR (AI) - Florida Appraisal Law Course (2/7/2014) SEMINAR (AI) - Liability Issues for Appraisers performing Litigation & Non -Lending Work (2/24/2014) COURSE (AI) - 7 Hour National USPAP Update Course (4/25/2014) SEMINAR (AI) - Economic Conditions (5/16/2014) SEMINAR (AI) - Fundamentals of Going Concerns (7/16/2014) SEMINAR (AI) - Litigation Assignments for Residential Appraisers (7/24/2014) SEMINAR (AI) - Economic Engines of Miami -Dade County, Florida (1/23/2015) SEMINAR (AI) - Economic Engines Driving Broward County, Florida (5/15/2015) 3 -Hour Fla.Law - Florida Real Estate Broker 14 -hour Continuing Education Course (incl. 3 hour core law) with exam (9/2015) SEMINAR (AI) - Drone Technology & its Effect on Real Estate Valuations (11/2015) SEMINAR (AI) - Loss Prevention for Real Estate Appraisers (1/22/2016) COURSE (AI) - 7 -Hour National USPAP Update Course (4/22/2016) SEMINAR (AI) - 3 -Hour Florida Appraisal Law (4/22/2016) SEMINAR (AI) - 4 -Hour Appraisals in the Banking Environment (5/6/2016) SEMINAR (AI) - Appraising the Tough One: Mixed Use Properties (8/19/2016) SEMINAR (AI) - 4 -Hour Business Practices & Ethics (12/02/2016) 5 -Year Requirement WEBINAR (AI) - 2 -Hour Yellow Book Changes — Overview for Appraisers (1/11/2017) SEMINAR (AI) - 3 -Hours Economic Engines Driving Broward County in 2017 (1/27/2017) COURSE (AI) - 7 -Hours: Introduction to Green Buildings Principles & Concepts (2/24/2017) Page 5 of 5 F) APPRAISAL TEACHING EXPERIENCE Licensed by the Florida Department of Education to Teach (Certificate No. 275236). Authored and taught Residential and Commercial Real Estate Appraisal Courses for Broward County Adult Education Program. Taught Course 101 - Society of Real Estate Appraisers. Taught Course 201 - Society of Real Estate Appraisers. Taught Appraisal Seminars - Board of Realtors, ASA, SREA, and Al (Appraisal Institute). Adjunct Professor, University of Florida Division of Continuing Education: (taught Course 2, "Real Estate Principles and Practices" to prospective Florida Real Estate Brokers). G) PROFESSIONAL OFFICES HELD/AWARDS NATIONAL B.O.D. MEMBER - BOARD OF DIRECTORS of APPRAISAL INSTITUTE (2006- 2008) AWARD - Appraisal Institute `NATIONAL PRESIDENTS AWARD" 2008 AWARD - Appraisal Institute "LIFETIME ACHIEVEMENT AWARD" 2011 For "high ethical standards, contributions to the Appraisal Institute, Community and Appraisal Profession for at least 20 years." CHAIR - REGION X - All of Florida - Appraisal Institute (2008) VICE -CHAIR - REGION X - All of Florida - Appraisal Institute (2007) THIRD DIRECTOR - REGION X - All of Florida - Appraisal Institute (2006) FINANCE OFFICER - REGION X — All of Florida — Appraisal Institute (2006) PRESIDENT - BROWARD COUNTY, SOCIETY OF REAL ESTATE APPRAISERS PRESIDENT - BROWARD COUNTY, AMERICAN SOCIETY OF APPRAISERS CHAIR - FLA. STATE GOVERNMENT RELATIONS SUBCOMMITTEE OF Al CHAIR - FLA. STATE LEGISLATION & REGULATION SUBCOMMITTEE OF Al G) PROFESSIONAL OFFICES HELD/AWARDS CHAIR - FLORIDA REALTORS COMMITTEE ON COMMITTEE REFORMS CHAIR - EDUCATION COMMITTEE, FT. LAUDERDALE CHAPTER Al CHAIR - CANDIDATES GUIDANCE COMMITTEE, FT .LAUDERDALE CHAPTER Al CHAIR - NATIONAL Valuation for Financial Reporting PROJECT TEAM OF Al VICE CHAIR & MEMBER - NATIONAL GOVERNMENT RELATIONS COMMITTEE OF Al (15 Years) MEMBER - NATIONAL LONG RANGE PLANNING COMMITTEE OF Al MEMBER - NATIONAL PUBLIC AFFAIRS COMMITTEE OF Al DIRECTOR - REGION X (Florida) Appraisal Institute MEMBER - REGION X (FLORIDA) ETHICS AND COUNSELING PANEL DIRECTOR - BROWARD COUNTY, FLORIDA SOCIETY OF REAL ESTATE APPRAISERS DIRECTOR - SOUTH FLORIDA CHAPTER AMERICAN SOCIETY OF APPRAISERS MEMBER - NATIONAL EXPERIENCE REVIEW PANEL MEMBER OF Al SPECIAL MASTER - BROWARD COUNTY BOARD OF TAX ADJUSTMENT COMMISSIONER - 17TH JUDICIAL CIRCUIT COURT, Broward County, FL MEMBER - 2013 APPRAISAL INSTITUTE NATIONAL BUSVAL PROJECT TEAM H) PROFESSIONAL PUBLICATIONS & PRESENTATIONS Wrote and taught a basic Residential Appraisal Course for the Broward County Adult Education Div. of the Dept. of Education; Wrote and taught an Income Appraisal Course for the Broward County Adult Education Division of the Department of Education; Co-authored and taught an appraisal course on Mortgage -Equity Capitalization for the American Society of Appraisers. Authored and taught a Florida State and Appraisal Institute 3 -hour accredited course in "The Legislation, Regulation and Appraisal of Real Property Rights in Florida September 7, 1996. Presentation on "Gramm -Leach -Bliley" Federal Privacy Act of 1999 for South Florida Chapter of American Society of Appraisers on October 24, 2 00 1. Presented 3 -hour Florida CEU-credit seminar on "Appraisers and the Gramm -Leach -Bliley Act' before the South Florida Chapter of the Appraisal Institute on July 27, 2002. Presenter at 6.5 Hour CLE -credit Attorney Seminar on Florida Eminent Domain, "Valuation and Damage Issues" February 2, 2006, Fort Lauderdale, Florida P CIVIC INVOLVEMENT MEMBER OF ROTARY INTERNATIONAL / PAUL HARRIS FELLOW MEMBER OF THE GREATER FORT LAUDERDALE OPERA GUILD MEMBER FLORIDA PHILHARMONIC BROWARD TRUSTEES MEMBER OF THE BROWARD COUNTY LIBRARY SUPPORT GROUP ("BYBLOS") MEMBER CIRCLE OF FRIENDS — NOVA SOUTHEASTERN LIBRARY FOUNDATION MEMBER NOVA SOUTHEASTERN UNIVERSITY ALUMNI ASSOCIATION MEMBER OF THE FORT LAUDERDALE HISTORICAL SOCIETY MEMBER OF THE BROWARD COUNTY MUSEUM OF THE ARTS MEMBER OF THE FORT LAUDERDALE / BROWARD COUNTY CHAMBER OF COMMERCE MEMBER OF THE BETTER BUSINESS BUREAU OF SOUTH FLORIDA LIFETIME HONORARY MEMBER FLORIDA SHERIFF'S ASSOCIATION MEMBER NATIONAL & FT. LAUDERDALE COUNCILS U.S. NAVY LEAGUE U.S. ARMY VETERAN WWII (RA 1721268 1) - HONORABLE DISCHARGE 1949 I of 4 Vance Beal Estate Service Claudia Vance, MAI Appraiser - Real Estate Analyst Reviewer Vance Real Estate Service - 7481 NW 4 Street Plantation - FL - 33317 Office: 954.583.2116 Cell: 954.647.7148 Email: vancevalgatt.net Web Site: www.vancerealestateservice.com Vance Real Estate Service is a Veteran -Owned Small Business (VOSB) and Florida Certified SDVBE Minority Business Enterprise specializing in personalized real estate valuation services in Florida for over 35 years. Designated appraisers perfonm the appraisal work, no trainees. Our appraisals are used for financial/ mortgage loan purposes from large mixed use complexes to small owner- occupied properties. We have the qualifications for appraisals submitted to SBA. Jesse B. Vance, Jr., MAI, SRA, ASA and Claudia Vance, MAI are qualified as expert witnesses for eminent domain, deficiency judgments, marriage dissolution, and estates. Our fine values most types of real property interests, timely, professionally, and at competitive costs. PROFESSIONAL QUALIFICATIONS A) PROFESSIONAL DESIGNATIONS/ LICENSES MAI Designation - APPRAISAL INSTITUTE No. 9451 State -Certified General Real Estate Appraiser No. RZ-173 Florida State Licensed Real Estate Broker No. BK 0161305 VOSB Veteran -Owned Small Business (CCR/Duns 826494957) B) WORK HISTORY 1983 - Current Vice President - Vance Real Estate Service 1981-1983 President - The Appraisal Company, Fort Lauderdale, Florida 1979-1981 Staff Appraiser - Real Property Analysts, Inc., Fort Lauderdale, Florida 1976-1980 REALTOR -Associate - The Atwood Corporation, Fort Lauderdale, Florida 1973-1975 Teacher of Secondary Language Arts in the Jefferson Parish School in Louisiana C) QUALIFIED AS AN EXPERT WITNESS IN REAL ESTATE VALUATION U.S. Bankruptcy Court, Southern District of Florida Florida Circuit Court: Broward County D) APPRAISER SPECIAL MAGISTRATE FOR THE BROWARD CO VALUE ADJUSTMENT BOARD 2002-2010 E) EXPERIENCE: 35+years appraising and analyzing real property interests in South Florida. Partial list of real vroverty types valued: High value residences, Condominiums/ Co-operatives, Office, Industrial, Multi -fainly, Restaurants/ bars, Auto dealerships, City Centers, Hotels/ imotels, Houses of worship, Schools, Child care centers, Self -storage, Funeral home, Animal Hospital, Mixed use, Nursing homes, Gas sales stations, Marinas, Mobile home parks, Shopping centers, Country clubs/ golf courses, Financial institutions, Bowling centers, Vacant land, Agricultural properties, Environmentally sensitive land Tvves of Reports: Market Value, Eminent Domain, Marketability, Feasibility, Highest and Best Use, Investment Analyses, Partial Interests, Easement Valuations, Estate planning, Marriage dissolution, Land use studies, Damage/ Contamination studies 2 of 4 F) PARTIAL LIST OF CLIENTS — PRIVATE: Individuals, Corporations, Attorneys, Accountants, Habitat for Hu vanity, Seminole Tribe of Florida COMMERCIAL BANKS: Wells Fargo; BankAtlantic; SunTrust; Citigroup; Space Coast Credit Union; State Fann Bank; Florida Shores Bank; American National Bank; Landmark Bank; City National Bank; Englewood Bank & Trust SAVINGS & LOANS, INSURANCE COMPANIES, REAL ESTATE INVESTMENT TRUSTS, & REAL ESTATE TRANSFER COMPANIES, TITLE INSURANCE COMPANIES FLORIDA CITIES: Fort Lauderdale, Plantation, Cooper City, Deerfield Beach, Tamarac, Oakland Park, Wilton Manors, Davie, Hollywood, Pembroke Pines, Hallandale Beach, Lauderhill, Southwest Ranches, Miramar, Boca Raton, Boynton Beach, West Patin Beach, Delray Beach FLORIDA COUNTIES and AGENCIES: Broward, Pahn Beach, Broward County Board of County Cormnissioners, School Board of Broward County, Broward County Housing Authority STATE OF FLORIDA Department of Transportation (FDOT), Department of Environmental Protection U.S. Department of Veterans Affairs, U.S. Department of Treasury (IRS), U.S Marshall's Service, U.S. Attorney G) EDUCATIONAL BACKGROUND Academic: Bachelor of Arts Degree — University of New Orleans, New Orleans, LA — Major: English Professional: Course 1-A (AIREA) - Introduction to Appraising Real Property, 1977, Passed Exam Course 1-B (AIREA) - Capitalization Theory and Techniques, 1978, Passed Exam Course VIII (AIREA) - Residential Appraising, 1978, Passed Exam Course SPP (AI) - Standards of Professional Practice, 1992, Passed Exam Course 2-1 (AIREA) - Case Studies, 1987, Passed Exam Course 2-2 (AIREA) - Report Writing, 1987, Passed Exam Course R-2 (SREA) - Report Writing, 1978, Passed Exam Course 202 (SREA) - Applied Income Property Valuation, 1983, Passed Exam Course 301 (SREA) - Applications/Appraisal Analysis, 1984, No Exam Course SPP (SREA) - Standards of Professional Practice, 1989, No Exam Symposium (SREA) - Market Analysis, 1983, Philadelphia Symposium (SREA) - Market Analysis, 1984, Atlanta Symposium (SREA) - Market Analysis, 1985, Vancouver Symposium (SREA) - Market Analysis, 1986, Atlantic City Symposium (SREA) - Market Analysis, 1988, Los Angeles SEMINAR (AI) - Cost Approach (1992/Boston) SEMINAR (AI) - Rates & Ratios (1992/Boston) SEMINAR (AI) - International Appraising (1992/Boston) SEMINAR (AI) - Litigation Valuation/Mock Trial (1993) SEMINAR (AI) - ADA ACT (1993/Reno) SEMINAR (AI) - Hotel Valuation (1993) SEMINAR (AI) - Income Capitalization, Methods (1993) SEMINAR (AI) - Powerlines/Electromagnetic Radiation (1994) SEMINAR (AI) - Verifying Market Data (1994) SEMINAR (AI) - Market Studies for Appraisals (1994) SEMINAR (AI) - Florida Appraiser Core Law (USPAP/1994) SEMINAR (AI) - Limited Appraisals & Reports (USPAP/1994) SEMINAR (AI) - Public Safety & Property Values (1995) SEMINAR (AI) - Outparcel Valuation (1995) SEMINAR (AI) - Computer Technology Video Conference (1995) SEMINAR (AI) - The Internet & the Appraiser (1996) SEMINAR (AI) - Florida Commercial Construction (1996) SEMINAR (AI) - 1996 Data Exchange (1996) SEMINAR (AI) - Real Property Rights in Florida (1996) COURSE (AI) - USPAP & Florida Real Estate Core Law (1996) SEMINAR (AI) - Valuation of Trees (1997) of 4 G) EDUCATIONAL BACKGROUND (Continued) SEMINAR (AI) - Valuation of Transferable Development Rights [TDR's] (1997) COURSE (AI) - Standards of Professional Practice, Part C, 15 hour Course #430 (1997) SEMINAR (AI) - Non -Conforming Uses (1998) SEMINAR (AI) - The Impact of Contamination on Real Estate Value (1998) COURSE (AI) - USPAP & Florida Real Estate Core Law (1998) SEMINAR (AI) - Econometrics/Statistical Valuation Methods (1999) SEMINAR (AI) - Globalization of Real Estate/What U.S. Appraisers Need to Know (1999) SEMINAR (AI) - The Role of the Appraiser in Alternative Dispute Resolution (Mediation/Arbitration) (1999) SEMINAR (AI) - Technology Forum Part II/Intermediate (1999) SEMINAR (AI) - Client Satisfaction/Retention/Development (1999) SEMINAR (AI) - Attacking and Defending an Appraisal (1999) SEMINAR (AI) - Federal Appraisal Requirements (2000) SEMINAR (AI) - Regression Analysis in Appraisal Practice: Concepts & Applications (2000) SEMINAR (AI) - Analyzing Income Producing Properties (2000) COURSE (AI) - USPAP & Florida Real Estate Core Law (2000) SEMINAR (AI) - Mediation & Alternate Dispute Resolution Seminar (2001) SEMINAR (AI) - State of the Appraisal Profession (2001) SEMINAR (AI) - Ad Valorem Assessment Process in Florida (2002) SEMINAR (AI) - Role of Real Estate Appraisers in Bankruptcy Proceedings (2002) SEMINAR (AI) - Appraisers & the Gramm -Leach -Bliley Federal Privacy Act (2002) SEMINAR (AI) - How to Appraise the Ugly House (2002) COURSE (AI) - 2 -Day Course #430, Standards of Professional Practice, Part C (2002) SEMINAR (AI) - Market Trends for 2003 (2003) SEMINAR (AI) - Update on Code of Professional Ethics (2003) PANEL (AI) - Moderator "Industry, Consumer & Congressional Views on Predatory Lending" D.C. (2003) SEMINAR (AI) - Florida State Law for Real Estate Appraisers (2003) SEMINAR (AI) - Appraisal Agreements (2003) SEMINAR (AI) - Analyzing Distressed Real Estate (2004) SEMINAR (AI) - Valuation for Financial Reporting Purposes (2004) SEMINAR (AI) - National USPAP Course (2004) SEMINAR (AI) - Inverse Condemnation (2004) SEMINAR (AI) - Loss Prevention (2005) SEMINAR (AI) - Single Family Fraud Awareness (2005) SEMINAR (AI) - Guide to the new URAR form (2005) SEMINAR (AI) - Technologies for Real Estate Appraisers (2006) SEMINAR (AI) - The Appraiser's Role in New Urbanism (2006) SEMINAR (AI) - National USPAP Update (2006) SEMINAR (AI) - Florida State Law for Real Estate Appraisers (2006) SEMINAR (AI) - Scope of Work and the New USPAP Requirements (2006) SEMINAR (AI) - Energy Star and the Appraisal Process (2006) SEMINAR (AI) - Reappraising, Readdressing, and Reassigning Appraisals (2007) SEMINAR (AI) - Real Estate Fraud (2007) SEMINAR (AI) - Forecasting Revenue (2007) SEMINAR (AI) - Florida Law for Real Estate Appraisers (2007) COURSE (AI) - Business Practice and Ethics #420 (2007) SEMINAR (AI) - Supervisor — Trainee Roles and Rules (2008) COURSE (AI) - 7 Hour National USPAP Update #400 (2008) SEMINAR (AI) - Hypothetical Conditions and Assumptions (2008) SEMINAR (AI) - Real Estate Economy (2008) SEMINAR (AI) - Public Sector Appraising (2009) SEMINAR (AI) - Inspecting the residential "green" house (2009) WEBINAR (AI) - Value for Financial Reporting (2009) SEMINAR (AI) - The Real Estate Market in 2009 SEMINAR (AI) - New Government Regulations (2009) SEMINAR (AI) -Property Tax Assessment (2010) SEMINAR (AI) -7 Hour National USPAP (2010) SEMINAR (AI) - Florida Law for Real Estate Appraisers (2010) SEMINAR (AI) - Supervisor/ Trainee Roles and Rules (2010) SEMINAR (AI) - The Real Estate Market (2011) SEMINAR (AI) - Uniform Appraisal Standards for Federal Land Acquisitions- "Yellow Book" (2011) COURSE (AI) - 15 Hour Appraisal Curriculum Overview (2011) SEMINAR (AI) - Spotlight on USPAP — Agreement for Services (2011) SEMINAR (AI) - Trial Components (2011) 4 of 4 G) EDUCATIONAL BACKGROUND (Continued) SEMINAR (AI) - Lessons from the Old Economy Working in the New (2012) SEMINAR (AI) - Appraisal Review for General Appraisals (2012) COURSE (AI) - National USPAP Update (2012) SEMINAR (AI) - Florida Law (2012) SEMINAR (AI) - Land Valuation (2012) SEMINAR (AI) - Valuation of Warehouses (2012) SEMINAR (AI) - IRS Valuation (2012) SEMINAR (AI) - Business Practices and Ethics (2012) SEMINAR (AI) - Real Estate Forecast (2013) SEMINAR (AI) - Advanced Marketability Studies (2013) SEMINAR (AI) - Developing a Supportable Workfile (2013) SEMINAR (AI) - Florida Appraisal Law (2014) SEMINAR (AI) - Liability Issues for Appraisers performing Litigation & Non -Lending Work (2014) COURSE (AI) -7 Hour National USPAP Update Course (2014) SEMINAR (AI) -Florida Law (2014) SEMINAR (AI) - New Real Estate Economy (2014) SEMINAR (AI) - Economic Engines of Miami -Date County (2015) SEMINAR (AI) - Economic Engines of Broward County (2015) SEMINAR (AI) - Tightening the Appraisal (2015) SEMINAR (AI) - Evaluating Commercial Construction (2015) SEMINAR (AI) - Drone Technology (2015) SEMINAR (AI) - Loss Prevention for Appraisers (2016) COURSE (AI) - 7 Hour National USPAP Update (2016) SEMINAR (AI) - Florida Law (2016) SEMINAR (AI) - Redefining the Appraisal & Its Role in an Evolving Banking Environment (2016) H) PROFESSIONAL INVOLVEMENT Region X Representative of the Appraisal Institute 2006 — 2009 President of the South Florida Chapter of the Appraisal Institute - 2003 First Vice -President of the South Florida Chapter of the Appraisal Institute -2002 Second Vice -President of the South Florida Chapter of the Appraisal Institute -2001 Secretary of the South Florida Chapter of the Appraisal Institute -2000 Treasurer of the South Florida Chapter of the Appraisal Institute - 1999 Chair of the Education Committee of the S. Florida Chapter of the Appraisal Institute - 1995, 1996, 1997, 1998, 2007- 2016 Chair of the University Relations Committee of the South Florida Chapter of the Appraisal Institute - 2006 Director of the South Florida Chapter of the Appraisal Institute 1996 - 1998 Member of Region X (Florida) Ethics and Counseling Panel —Al Graduate of the Florida REALTORS Institute (GRI) Director of the Florida Association of REALTORS (FAR) - 1981 Committee Member of the Florida Association of REALTORS, Education Committee 1980 & 1981 Chairman of the Education Committee of the Fort Lauderdale REALTORS - 1981 and 1982; Member 1978, 1979, 1980 Member of the Long Range Planning and Awards Committees of the Fort Lauderdale REALTORS Instructor for the Investment Division of the Fort Lauderdale REALTORS D PROFESSIONAL PUBLICATIONS & PRESENTATION Prepared and taught Mastering Real Estate Mathematics at the Fort Lauderdale Area Board of REALTORS Prepared and taught A Guide to Researching Real Estate Information in Broward County and Working Through the Basic Approaches to Market Value, Fort Lauderdale Area Board of REALTORS J) CIVIC INVOLVEMENT Member of the Navy League of the United States — Fort Lauderdale Council Lifetime Honorary Member- Florida Sheriff s Association Member of Zeta Tau Alpha Alumnae Fraternity ATTACHMENT III 521 NE 2nd St Cottage District Aerial Streetview ATTACHMENT IV PURCHASE AND SALE AGREEMENT This Purchase and Sale Agreement (hereinafter "Agreement") is made and entered into as of the Effective Date (hereinafter defined), by and between BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, a public agency created pursuant to Chapter 163, Part III, of the Florida Statutes (hereinafter "PURCHASER") and 521 BOYNTON, LLC (hereinafter "SELLER"). In consideration of the mutual covenants and agreements herein set forth, the Parties hereto agree as follows: 1. PURCHASE AND SALE/PROPERTY. SELLER agrees to sell and convey to PURCHASER and PURCHASER agrees to purchase and acquire from SELLER, on the terms and conditions hereinafter set forth, the Properties located in Palm Beach County, Florida (the "Properties") and more particularly described as follows: Lots 74 and 76 (LESS the West 25.0 feet thereof), C.W. COPP'S ADDITION TO BOYNTON, according to the Plat thereof, as recorded in Plat Book 7, Page 56, of the Public Records of Palm Beach County, Florida. Property Address: 521 NE 2nd Street, Boynton Beach, FL 33435 2. PURCHASE PRICE AND PAYMENT. The Purchase Price to be paid for the Property shall be One Hundred Sixty -Six Thousand and NO/100 Dollars ($166,000.00), payable in cash, by wire transfer of United States Dollars at the Closing. 3. DEPOSIT. 3.1 Earnest Money Deposit. Within five (5) Business Days after the execution of the Purchase Agreement by both parties, PURCHASER shall deliver to Lewis, Longman & Walker, PA ("Escrow Agent") a deposit in the amount of Three Thousand Dollars ($3,000.00) the "Deposit"). 3.2 Application/Disbursement of Deposit. The Deposit shall be applied and disbursed as follows: The Deposit shall be delivered to SELLER at Closing and the PURCHASER shall receive credit for such amount against the Purchase Price. If this Agreement is terminated during the Feasibility Period (hereinafter defined) for any reason, the Deposit shall be immediately refunded to the PURCHASER. If this Agreement is terminated due to a default, pursuant to Section 12, the 0080770? -1 Purchase and Sale Agreement Page 2 of 15 Deposit shall be delivered to (or retained by, as applicable) the non -defaulting Party, and the non - defaulting Party shall have such additional rights, if any, as are provided in Section 12. 3.3 Escrow Agent. PURCHASER and SELLER authorize Escrow Agent to receive, deposit and hold funds in escrow and, subject to clearance, disburse them upon proper authorization and in accordance with Florida law and the terms of this Agreement. The parties agree that Escrow Agent will not be liable to any person for misdelivery of escrowed items to PURCHASER and SELLER, unless the misdelivery is due to Escrow Agent's willful breach of this Agreement or gross negligence. If Escrow Agent interpleads the subject matter of the escrow, Escrow Agent will pay the filing fees and costs from the deposit and will recover reasonable attorney's fees and costs to be paid from the escrowed funds which are charged and awarded as court costs in favor of the prevailing party. All claims against Escrow Agent will be arbitrated, so long as Escrow Agent consents to arbitrate. 4. EFFECTIVE DATE. The effective date of the Purchase Agreement is the date that the Escrow Agent receives the Escrow Deposit and Escrow Agent executes the Agreement. 5. CLOSING. The purchase and sale transaction contemplated herein shall close on or before June 15, 2017, (the "Closing"), unless extended by other provisions of this Agreement or by written agreement, signed by both parties, extending the Closing. 6. TITLE TO BE CONVEYED. At Closing, SELLER shall convey to PURCHASER, by Warranty Deed complying with the requirements of the Title Commitment (hereinafter defined), valid, good, marketable and insurable title in fee simple to the Property, free and clear of any and all liens, encumbrances, conditions, easements, assessments, restrictions and other conditions except only the following (collectively, the "Permitted Exceptions"): (a) general real estate taxes and special assessments for the year of Closing and subsequent years not yet due and payable; (b) covenants, conditions, easements, dedications, rights-of-way and matters of record included on the Title Commitment or shown on the Survey (defined in Section 7), to which PURCHASER fails to object, or which PURCHASER agrees to accept, pursuant to Section 7.1 and Section 7.2 hereof. 7. FEASIBILITY PERIOD. The PURCHASER, and its designees shall have Twenty (20) days from the Effective Date of this Agreement ("Feasibility Period"), at PURCHASER's expense, to make inquiries to determine if the Property is suitable for its intended use and to enter upon the Property, at any time and from time to time with reasonable notice to SELLER and so long as said investigations do not result in a business interruption, to perform any and all physical tests, inspections, valuation appraisals and investigations of the Property, including but not limited to Phase I and Phase If investigations, which PURCHASER may deem necessary. During this Feasibility Period, PURCHASER may elect, in PURCHASER's sole and absolute discretion, to terminate this contract and receive back all deposits hereunder. If PURCHASER elects to terminate this Agreement in accordance with this Section, PURCHASER shall: (i) leave the 00807705-1 5 Purchase and Sale Agreement Page 3 of 15 Property in substantially the condition existing on the Effective Date, subject to such disturbance as was reasonably necessary or convenient in the testing and investigation of the Property; (ii) to the extent practicable, shall repair and restore any damage caused to the Property by PURCHASER's testing and investigation; and (iii) release to SELLER, at no cost, all reports and other work generated as a result of the PURCHASER's testing and investigation. PURCHASER hereby agrees to indemnify and hold SELLER harmless from and against all claims, losses, expenses, demands and liabilities, including, but not limited to, attorney's fees, for nonpayment for services rendered to PURCHASER (including, without limitation, any construction liens resulting therefrom) or for damage to persons or property (subject to the limitation on practicability provided above) arising out of PURCHASER's investigation of the Property. However, PURCHASER's indemnification obligations shall not exceed its statutory limits as provided within Section 768.28, Florida Statutes, and PURCHASER does not waive its sovereign immunity rights. SELLER hereby agrees to indemnify and hold PURCHASER harmless from and against all claims, losses, expenses, demands and liabilities, including, but not limited to, attorney's fees, for nonpayment for services rendered to SELLER or for damage to persons or property (subject to the limitation on practicability provided above) arising out of PURCHASER's investigation of the Property. SELLERS' obligations under this Section shall survive the termination, expiration or Closing of this Agreement. 7.1 Title Review. Within twenty (20) days of the Effective Date, PURCHASER shall obtain, at the PURCHASER's expense, from a Title Company chosen by PURCHASER (hereinafter "Title Company"), a Title Commitment covering the Property and proposing to insure PURCHASER in the amount of the Purchase Price subject only to the Permitted Exceptions, together with complete and legible copies of all instruments identified as conditions or exceptions in Schedule B of the Title Commitment. Any and all assessments, outstanding utility charges, liens and other matters not constituting Permitted Exceptions shall be paid by Seller prior to or at closing from Seller's proceeds. PURCHASER shall examine the Title Commitment and deliver written notice to SELLER no later than thirty (30) days after the Effective Date notifying SELLER of any objections PURCHASER has to the condition of title (hereinafter "Title Objections"). If PURCHASER fails to deliver the Title Objections to SELLER within the aforesaid review period, title shall be deemed accepted subject to the conditions set forth in the Title Commitment. If PURCHASER timely delivers the Title Objections, then SELLER shall have thirty (30) days to diligently and in good faith undertake all necessary activities to cure and remove the Title Objections (hereinafter "Cure Period"). In the event that SELLER is unable to cure and remove, or cause to be cured and removed, the Title Objections within the Cure Period, to the satisfaction of PURCHASER, then PURCHASER, in PURCHASER's sole and absolute discretion, shall have the option of (i) extending the Cure Period and the Closing for one additional thirty (30) day period, or (ii) accepting the title as it then is but using such portion of the Purchase Price as may be necessary to pay and satisfy any mortgages, outstanding utility charges, delinquent property taxes and/or code enforcement and contractors' liens or other recorded claims of lien upon the property, or (iii) canceling and terminating this Agreement, in which case, the Deposit shall be returned to PURCHASER and the Parties shall have no further obligations or liability hereunder, 00807705-1 9 Purchase and Sale Agreement Page 4 of 15 except for those expressly provided herein to survive termination of this Agreement. Prior to the Closing, PURCHASER shall have the right to cause the Title Company to issue an updated Title Commitment ("Title Update") covering the Property. If any Title Update contains any conditions which did not appear in the Title Commitment, and such items render title unmarketable, PURCHASER shall have the right to object to such new or different conditions in writing prior to Closing. All rights and objections of the Parties with respect to objections arising from the Title Update shall be the same as objections to items appearing in the Title Commitment, subject to the provisions of this Section. 7.2. Survey Review. PURCHASER, at PURCHASER's expense, shall obtain a current boundary survey (the "Survey") of the Property, indicating the number of acres comprising the Property to the nearest 1/100th of an acre. If the Survey discloses encroachments on the Property or that improvements located thereon encroach on setback lines, easements, lands of others or violate any restrictions, covenants of this Agreement, or applicable governmental regulations, the same shall constitute a title defect and shall be governed by the provisions of Section 7.1 concerning title objections. 7.3 SELLER Deliveries. SELLER shall deliver to PURCHASER the following documents and instruments within ten (10) days of the Effective Date of this Agreement, except as specifically indicated: 7.3.1 Copies of any reports or studies (including engineering, environmental, soil borings, and other physical inspection reports), in SELLER's possession or control with respect to the physical condition or operation of the Property, if any. 7.3.2 Copies of all licenses, variances, waivers, permits (including but not limited to all surface water management permits, wetland resource permits, consumptive use permits and environmental resource permits), authorizations, and approvals required by law or by any governmental or private authority having jurisdiction over the Property, or any portion thereof (the "Governmental Approvals"), which are material to the use or operation of the Property, if any. 7.3.3 Prior to the Closing Date, SELLER shall execute and deliver to PURCHASER any and all documents and instruments required by PURCHASER, in PURCHASER's sole and absolute discretion, which: (i) effectuate the transfer to PURCHASER of those Governmental Approvals, or portions thereof which are applicable to the Property, that PURCHASER desires to have assigned to it, and/or (ii) cause the Property to be withdrawn from any Governmental Approvals. No later than thirty (30) days prior to the Closing Date, SELLER shall remedy, restore, and rectify any and all violations of the Governmental Approvals (including, but not limited to, any and all portions of the surface water management system, mitigation areas or other items which do not comply with the Governmental Approvals or applicable rules), 00807705-1 Purchase and Sale Agreement Page 5 of 15 if any. SELLER warrants that there will not be, at the time of Closing, any unrecorded instruments affecting the title to the Property, including, but not limited to any conveyances, easements, licenses or leases. 8. CONDITIONS TO CLOSING. PURCHASER shall not be obligated to close on the purchase of the Property unless each of the following conditions (collectively, the "Conditions to Closing") are either fulfilled or waived by PURCHASER in writing: 8.1. Representations and Warranties. All of the representations and warranties of SELLER contained in this Agreement shall be true and correct as of Closing. 8.2. Condition of Property. The physical condition of the Property shall be the same on the date of Closing as on the Effective Date, reasonable wear and tear excepted. 8.3. Pending Proceedings. At Closing, there shall be no litigation or administrative agency or other governmental proceeding of any kind whatsoever, pending or threatened, which has not been disclosed, prior to closing, and accepted by PURCHASER. 8.4. Compliance with Laws and Regulations. The Property shall be in compliance with all applicable federal, state and local laws, ordinances, rules, regulations, codes, requirements, licenses, permits and authorizations as of the date of Closing. 8.5. Occupancy. SELLER shall serve its two existing tenants with all required notices to ensure timely termination of all tenancies. Notwithstanding any other provision of this Agreement, it is expressly understood that PURCHASER's obligation to close is contingent upon the Property being unoccupied at the time of closing. 9. CLOSING DOCUMENTS. The PURCHASER shall prepare, or cause to be prepared, the Closing Documents set forth in this Section, except for documents prepared by the SELLER'S Title Company. At Closing, SELLER shall execute and deliver, or cause to be executed and delivered to PURCHASER the following documents and instruments: 9.1. Deed. A Warranty Deed (the "Deed") conveying to PURCHASER valid, good, marketable and insurable fee simple title to the Property free and clear of all liens, encumbrances and other conditions of title other than the Permitted Exceptions. 9.2 Seller's Affidavits. SELLER shall furnish to PURCHASER an owner's affidavit attesting that, to the best of its knowledge, no individual or entity has any claim against the Property under the applicable construction lien law; and that there are no parties in possession of the Property other than SELLER. SELLER shall also furnish to PURCHASER a non -foreign affidavit with respect to the Property. In the event SELLER is unable to deliver its affidavits referenced above, the same shall be deemed an uncured title objection. 00807705-1 A2 / Purchase and Sale Agreement Page 6 of 15 9.3. Closing Statement. A closing statement setting forth the Purchase Price, the Deposit, all credits, adjustments and prorations between PURCHASER and SELLER, all costs and expenses to be paid at Closing, and the net proceeds due SELLER, which PURCHASER shall also execute and deliver at Closing. 9.4. Corrective Documents. Documentation required to clear title to the Property of all liens, encumbrances and exceptions, if any, other than Permitted Exceptions. 9.5. Additional Documents. Such other documents as PURCHASER or the Title Company may reasonably request that SELLER execute and deliver, and any other documents required by this Agreement or reasonably necessary in order to close this transaction and effectuate the terms of this Agreement. 10. PRORATIONS, CLOSING COSTS AND CLOSING PROCEDURES. 10.1. Prorations. Assessments, rents, interest, insurance and other expenses of the Property shall be prorated through the day before Closing. PURCHASER shall have the option of taking over existing policies of insurance, if assumable, in which event premiums shall be prorated. Cash at Closing shall be increased or decreased as may be required by prorations to be made through the day prior to Closing. Advance rent and security deposits, if any, will be credited to PURCHASER. Taxes shall be prorated based upon the current year's tax with due allowance made for maximum allowable discount. 10.2 Ad Valorem Taxes. PURCHASER and SELLER shall comply with Section 196.295, Florida Statutes, with respect to the payment of prorated ad valorem taxes for the year of closing into escrow with the Palm Beach County Tax Collector's Office. In the event that, following the Closing, the actual amount of assessed real property tax on the Property for the current year is higher than any estimate of such tax used for purposes of the Closing, the parties shall re -prorate any amounts paid or credited based on such estimate as if paid in November. This shall survive the Closing. 10.3. Special Assessment Liens. Certified, confirmed and ratified special assessment liens imposed by public bodies as of Closing are to be paid by SELLER. Pending liens as of Closing shall be assumed by PURCHASER. If the improvement has been substantially completed as of the Effective Date, any pending lien shall be considered certified, confirmed or ratified and SELLER shall, at Closing, be charged an amount equal to the last estimate or assessment for the improvement by the public body. 10.4. Closing Costs. PURCHASER shall be responsible for all documentary stamps on the deed, recording the deed and half of all general closing expenses (settlement fee, courier fees, overnight package, etc.). SELLER is responsible for half of all general closing ooso77os-i )V- Purchase and Sale Agreement Page 7of15 expenses and their own legal fees. All other costs of closing shall be borne by PURCHASER. 10.5 Closing Procedure. PURCHASER shall fund the Purchase Price subject to the credits, offsets and prorations set forth herein. SELLER and PURCHASER (as applicable) shall execute and deliver to Closing Agent the Closing Documents. The Closing Agent shall, at Closing: (i) disburse the sale proceeds to SELLER; (ii) deliver the Closing Documents and a "marked -up" Title Commitment to PURCHASER, and promptly thereafter, record the Deed and other recordable Closing Documents in the appropriate public records. 10.6 Existing Mortgages and Other Liens. At Closing, SELLER shall obtain, or cause to be obtained, satisfaction or release of record of all mortgages, liens and judgments applicable to and encumbering the Property. 11. REPRESENTATIONS, COVENANTS AND WARRANTIES. To induce PURCHASER to enter into this Agreement, SELLER makes the following representations, all of which, to the best of its knowledge, in all material respects and except as otherwise provided in this Agreement (i) are now true, and (ii) shall be true as of the date of the Closing unless SELLER receives information to the contrary, and (iii) shall survive the Closing. In that event, PURCHASER shall be provided immediate notice as to the change to the following representations: 11.1 At all times from the Effective Date until prior to Closing, SELLER shall keep the Property (whether before or after the date of Closing) free and clear of any mechanic's or materialmen's liens for work or materials furnished to or contracted for, by or on behalf of SELLER prior to the Closing, and SELLER shall indemnify, defend and hold PURCHASER harmless from and against all expense and liability in connection therewith (including, without limitation, court costs and reasonable attorney's fees). 11.2 SELLER has no actual knowledge nor has SELLER received any notice of any litigation, claim, action or proceeding, actual or threatened, against SELLER or the Property by any organization, person, individual or governmental agency which would affect (as to any threatened litigation, claim, action or proceeding, in a materially adverse fashion) the use, occupancy or value of the Property or any part thereof or which would otherwise relate to the Property. 11.3 SELLER has full power and authority to enter into this Agreement and to assume and perform its obligations hereunder in this Agreement. SELLER does not and will not conflict with or result in the breach of any condition or provision, or constitute a default under, or result in the creation or imposition of any lien, charge, or encumbrance upon any of the Property or assets of the SELLER by reason of the terms of any contract, mortgage, lien, lease, agreement, indenture, instrument or judgment to which the SELLER is a party of which is or purports to be binding upon the SELLER or which affects the SELLER; no action by any federal, state or municipal or other governmental department, commission, board, bureau or instrumentality is necessary to make this Agreement a valid instrument binding upon the SELLER in accordance with its terms. 00307705-1 7Lq� Purchase and Sale Agreement Page 8 of 15 11.4 SELLER represents that SELLER will not, between the date of this Agreement and the Closing, without PURCHASER'S prior written consent, which consent shall not be unreasonably withheld or delayed, except in the ordinary course of business, create any encumbrances on the Property. For purposes of this provision the term "encumbrances" shall mean any liens, claims, options, or other encumbrances, encroachments, rights-of-way, leases, easements, covenants, conditions or restrictions. Additionally, SELLER represents that SELLER will not, between the date of this Agreement, and the Closing take any action to terminate or materially, amend or alter any existing leases presently in existence, without the prior consent of PURCHASER, which consent shall not be unreasonably withheld or delayed. 11.5 SELLER represents that there are no parties other than SELLER in possession of the Property or any portion of the Property as a lessee. 11.6 SELLER shall not list or offer the Property for sale or solicit or negotiate offers to purchase the Property while this Agreement is in effect. SELLER shall use its best efforts to maintain the Property in its present condition so as to ensure that it shall remain substantially in the same condition from the conclusion of the Feasibility Period to the Closing Date. 11.7 SELLER has no actual knowledge nor has SELLER received any notice of any litigation, claim, action or proceeding, actual or threatened, against SELLER or the Property by any organization, person, individual or governmental agency which would affect (as to any threatened litigation, claim, action or proceeding, in a materially adverse fashion) the use, occupancy or value of the Property or any part thereof or which would otherwise relate to the Property. 11.8 SELLER represents that it has no actual knowledge nor has it received any notice that the Property has been, is presently or is contemplated to be utilized as a reservoir of hazardous material. As used herein, the term "Hazardous Material" shall mean any substance, water or material which has been determined by any state, federal or local government authority to be capable of posing a risk of injury to health, safety and property, including, but not limited to, all of those materials, wastes and substances designated as hazardous or toxic by the U.S. Environmental Protection Agency, the U.S. Department of Labor, the U.S. Department of Transportation, and/or any other state or local governmental agency now or hereafter authorized to regulate materials and substances in the environment (collectively "Governmental Authority(ies)"). 11.9 SELLER represents to PURCHASER that the Property is not subject to any deed restrictions or declaration of restrictions running with the Property which would affect the use of the Property except those constituting Permitted Exceptions as defined above. 00807705-I 14 Purchase and Sale Agreement Page 9 of 15 11.10 Between the date of this Agreement and the date of closing, SELLER will not file any application for a change of the present zoning classification of the Property. 11.11 Authority. The execution and delivery of this Agreement by SELLER and the consummation by SELLER of the transaction contemplated by this Agreement are within SELLER'S capacity and all requisite action has been taken to make this Agreement valid and binding on SELLER in accordance with its terms. The person executing this Agreement on behalf of SELLER has been duly authorized to act on behalf of and to bind SELLER, and this Agreement represents a valid and binding obligation of SELLER. 11.12 Title. SELLER is and will be on the Closing Date, the owner of valid, good, marketable and insurable fee simple title to the Property, free and clear of all liens, encumbrances and restrictions of any kind, except the Permitted Exceptions (and encumbrances of record which will be discharged at Closing). 11.13 Additional Warranties and Representations of SELLER. As a material inducement to PURCHASER entering into this Agreement, SELLER, to the best of SELLER'S information and belief, hereby represents and warrants the following: 11.13.1 There are no pending applications, permits, petitions, contracts, approvals, or other proceedings with any governmental or quasi -governmental authority, including but not limited to, PURCHASER, municipalities, counties, districts, utilities, and/or federal or state agencies, concerning the use or operation of, or title to the Property or any portion thereof and SELLER has not granted or is not obligated to grant any interest in the Property to any of the foregoing entities. 11.13.2 There are no facts believed by SELLER to be material to the use, condition and operation of the Property in the manner that it has been used or operated, which it has not disclosed to PURCHASER herein, including but not limited to unrecorded instruments or defects in the condition of the Property which will impair the use or operation of the Property in any manner. 11.13.3 To the best of SELLER'S knowledge, the Property and the use and operation thereof are in compliance with all applicable county and governmental laws, ordinances, regulations, licenses, permits and authorizations, including, without limitation, applicable zoning and environmental laws and regulations. 12. DEFAULT. 12.1. PURCHASER's Default. In the event that this transaction fails to close due to a wrongful refusal to close or default on the part of PURCHASER, subject to the provisions of Paragraph 12.3 below, the Deposit actually then being held by the Escrow Agent shall be paid by 00807705-1 'S Purchase and Sale Agreement Page 10 of 15 Escrow Agent to SELLER as agreed liquidated damages and, thereafter, neither PURCHASER nor SELLER shall have any further obligation or liabilities under this Agreement, except for those expressly provided to survive the termination of this Agreement; provided, however, that PURCHASER shall also be responsible for the removal of any liens asserted against the Property by persons claiming by, through or under PURCHASER, but not otherwise. PURCHASER and SELLER acknowledge that if PURCHASER defaults, SELLER will suffer damages in an amount which cannot be ascertained with reasonable certainty on the Effective Date and that the amount of the Deposit being held by Escrow Agent most closely approximates the amount necessary to compensate SELLER. PURCHASER and SELLER agree that this is a bona fide liquidated damages provision and not a penalty or forfeiture provision. 12.2. Seller's Default. In the event that SELLER shall fail to fully and timely perform any of its obligations or covenants hereunder or if any of SELLER'S representations are untrue or inaccurate, then, notwithstanding anything to the contrary contained in this Agreement, PURCHASER may, at its option: (1) declare SELLER in default under this Agreement by notice delivered to SELLER, in which event PURCHASER may terminate this Agreement and demand that the Deposit be returned, including all interest thereon if any, in accordance with Section 3 and neither Party shall have any further rights hereunder, or (2) seek specific performance of this Agreement, without waiving any action for damages. 12.3. Notice of Default. Prior to declaring a default and exercising the remedies described herein, the non -defaulting Party shall issue a notice of default to the defaulting Party describing the event or condition of default in sufficient detail to enable a reasonable person to determine the action necessary to cure the default. The defaulting Party shall have fifteen (15) days from delivery of the notice during which to cure the default, provided, however, that as to a failure to close, the cure period shall only be three (3) business days from the delivery of notice. Both parties agree that if an extension is requested, such extension shall not be unreasonably withheld. If the default has not been cured within the aforesaid period, the non -defaulting Party may exercise the remedies described above. 12.4. Survival. The provisions of this section shall survive the termination of this Agreement. 13. NOTICES. All notices required in this Agreement must be in writing and shall be considered delivered when received by certified mail, return receipt requested, or personal delivery to the following addresses: If to Seller: Steve Reichel 521 Boynton, LLC 7790 Villa D Este Way Delray Beach, FL 33446 00807705-1 Purchase and Sale Agreement Page 11 of 15 Telephone: (973) 727-9977 If to Purchaser : Executive Director Boynton Beach Community Redevelopment Agency 710 N. Federal Highway Boynton Beach, FL 33435 With a copy to: Kenneth Dodge Lewis, Longman & Walker, PA 515 North Flagler Drive Suite 1500 West Palm Beach, FL 33401 14. BINDING OBLIGATION/ASSIGNMENT. The terms and conditions of this Agreement are hereby made binding on, and shall inure to the benefit of the successors and permitted assigns of the Parties hereto. SELLER may not assign its interest in this Agreement without the prior written consent of PURCHASER, which shall not be unreasonably withheld. PURCHASER shall have the right to assign this Agreement to the City of Boynton Beach (the "City") without the prior consent of SELLER and the PURCHASER shall be released from any further obligations and liabilities under this Agreement. The PURCHASER may not assign this Agreement to any other party without the prior written approval of SELLER, which shall not unreasonably withheld. If PURCHASER has been dissolved as an entity while this Agreement and/or the attached Lease Agreement are in effect, the provisions of section 163.357(1), Florida Statutes, (as it may be amended from time to time), shall apply. 15. BROKER FEES. The SELLER and PURCHASER hereby state that they have not dealt with a real estate broker in connection with the transaction contemplated by this Agreement and are not liable for a sales commission. SELLER shall indemnify, defend and hold harmless the PURCHASER from and against any and all claims, losses, damages, costs or expenses (including, without limitation, attorney's fees) of any kind or character arising out of or resulting from any agreement, arrangement or understanding alleged to have been made by SELLER on its behalf with any broker or finder in connection with this Agreement. The provisions of this Section shall survive Closing or termination of this Agreement. 16. ENVIRONMENTAL CONDITION 16.1. For purposes of this Agreement, pollutant ("Pollutant") shall mean any hazardous or toxic substance, material, or waste of any kind or any contaminant, pollutant, petroleum, petroleum product or petroleum by-product as defined or regulated by environmental laws. Disposal ("Disposal") shall mean the release, storage, use, handling, discharge, or disposal of such Pollutants. Environmental laws ("Environmental Laws") shall mean any applicable federal, state, or local laws, statutes, ordinances, rules, regulations or other governmental restrictions. 00807705-1 Purchase and Sale Agreement Page 12 of 15 16.1.1 As a material inducement to PURCHASER entering into this Agreement, SELLER hereby warrants and represents the following, as applicable: (1) That SELLER and occupants of the Property have obtained and are in full compliance with any and all permits regarding the Disposal of Pollutants on the Property or contiguous property owned by SELLER, to the best of SELLER'S knowledge. (2) SELLER is not aware nor does it have any notice of any past, present or future events, conditions, activities or practices which may give rise to any liability or form a basis for any claim, demand, cost or action relating to the Disposal of any Pollutant on the Property. SELLER is not aware nor does it have any notice of any past, present or future events, conditions, activities or practices on contiguous property that is owned by SELLER which may give rise to any liability or form a basis for any claim, demand, cost or action relatingto the Disposal of any Pollutant affecting the SELLER'S property. (3) There is no civil, criminal or administrative action, suit, claim, demand, investigation or notice of violation pending or, to the best of that entity's knowledge, threatened against SELLER or the Property relating in any way to the Disposal of Pollutants on the Property, any portion thereof, or on any contiguous property owned by SELLER. 17. PUBLIC RECORDS. PURCHASER is a public agency subject to Chapter 119, Florida Statutes. The SELLER is hereby notified that the PURCHASER is required by law, pursuant to Chapter 119, to maintain and disclose upon request all records deemed public under the statute including this Agreement and some or all of the documents necessary to consummate the transaction set forth herein. To the extent that any litigation should be instituted by SELLER, either directly or as a third party, to prevent or prohibit PURCHASER from disclosing or providing documents involving this Agreement or the transaction set forth in the Agreement pursuant to a public records request submitted under Chapter 119, SELLER agrees that PURCHASER may either: 1) defend the claim up to and including final judgment, or 2) interplead the challenged documents into the court. In either event, SELLER agrees to pay PURCHASER's reasonable attorneys' fees and costs, both trial and appellate. 18. MISCELLANEOUS. 18.1. General. This Agreement, and any amendment hereto, may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall, together, constitute one and the same instrument. The section and paragraph headings herein contained are for the purposes of identification only and shall not be considered in construing this Agreement. Reference to a Section shall be deemed to be a reference to the entire Section, unless otherwise specified. No modification or amendment of this Agreement shall be of any force or effect unless in writing executed by the Parties. This Agreement sets forth the entire agreement between the Parties relating to the Property and all subject matter herein and supersedes all prior and contemporaneous negotiations, understandings and agreements, 00807705-i fi Purchase and Sale Agreement Page 13 of 15 written or oral, between the Parties. This Agreement shall be interpreted in accordance with the laws of the State of Florida. The Parties hereby agree that jurisdiction of any litigation brought arising out of this Agreement shall be in the Fifteenth Judicial Circuit, in and for Palm Beach County, Florida, or, should any cause of action be limited to federal jurisdiction only, in the United States District Court for the Southern District of Florida. 18.2. Computation of Time. Any reference herein to time periods which are not measured in business days and which are less than six (6) days, shall exclude Saturdays, Sundays and legal holidays in the computation thereof. Any time period provided for in this Agreement which ends on a Saturday, Sunday or legal holiday shall extend to 5:00 p.m. on the next full business day. Time is of the essence in the performance of all obligations under this Agreement. Time periods commencing with the Effective Date shall not include the Effective Date in the calculation thereof. 18.3. Waiver. Neither the failure of a party to insist upon a strict performance of any of the terms, provisions, covenants, agreements and conditions hereof, nor the acceptance of any item by a party with knowledge of a breach of this Agreement by the other party in the performance of their respective obligations hereunder, shall be deemed a waiver of any rights or remedies that a party may have or a waiver of any subsequent breach or default in any of such terms, provisions, covenants, agreements or conditions. This paragraph shall survive termination of this Agreement and the Closing. 18.4. Construction of Agreement. The Parties to this Agreement, through counsel, have participated freely in the negotiation and preparation hereof. Neither this Agreement nor any amendment hereto shall be more strictly construed against any of the Parties. As used in this Agreement, or any amendment hereto, the masculine shall include the feminine, the singular shall include the plural, and the plural shall include the singular, as the context may require. Provisions of this Agreement that expressly provide that they survive the Closing shall not merge into the Deed. 18.5. Severability. If any provision of this Agreement or the application thereof shall, for any reason and to any extent, be invalid or unenforceable, neither the remainder of this Agreement nor the application of the provision to other persons, entities or circumstances shall be affected thereby, but instead shall be enforced to the maximum extent permitted by law. The provisions of this Section shall apply to any amendment of this Agreement. 18.6 Handwritten Provisions. Handwritten provisions inserted in this Agreement and initialed by PURCHASER and SELLER shall control all printed provisions in conflict therewith. 18.7 Waiver of Jury Trial. As an inducement to PURCHASER agreeing to enter into this Agreement, PURCHASER and SELLER hereby waive trial by jury in any action or proceeding brought by either party against the other party pertaining to any matter whatsoever arising out of 00807705-1 Purchase and Sale Agreement Page 14 of 15 or in any way connected with this Agreement. 18.8. Attorneys Fees and Costs. Should it be necessary to bring an action to enforce any of the provisions of this Agreement, reasonable attorneys' fees and costs, including those at the appellate level, shall be awarded to the prevailing party. 18.9 Binding Authority. Each party hereby represents and warrants to the other that each person executing this Agreement on behalf of the PURCHASER and SELLER has full right and lawful authority to execute this Agreement and to bind and obligate the party for whom or on whose behalf he or she is signing with respect to all provisions contained in this Agreement. 18.10 Recording. This Agreement may be recorded in the Public Records of Palm Beach County, Florida. 18.11 Survival. The covenants, warranties, representations, indemnities and undertakings of SELLER set forth in this Agreement, shall survive the Closing, the delivery and recording of the SELLER'S Property Deed and PURCHASER's possession of the Property. 18.12 SELLER Attorneys' Fees and Costs. SELLER acknowledges and agrees that SELLER shall be responsible for its own attorneys' fees and all costs, if any, incurred by SELLER in connection with the transaction contemplated by this Agreement. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective date. PURCHASER: BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY Printed Name: SELLER: 521 BOYNTON, LLC F Printed Name: Title: Chair Title: �C—V%CA CA VIA 6QF Date: Date: I� WITNESS: 00807705-] WITNESS: Purchase and Sale Agreement Page 15 of 15 Printed Name: WITNESS: Printed Name: ESCROW AGENT Lewis, Longman & Walker, P.A. Printed Name: Date: Printed Name: C_lux— kell'C�e WIT Printed Name: 00807705-] J�\ i CRA BOARD MEETING OF: May 9, 2017 1 Consent Agenda I I Old Business I X I New Business Legal Information Only CRAAB AGENDA ITEM: XIV.G. SUBJECT: Consideration of Dates for Budget Meeting — FY2017-2018 SUMMARY: As discussed at the April 11, 2017 CRA Board meeting, staff will present a preliminary budget and funding allocation worksheet for the Project Fund account only at the June 13, 2017 regular Board meeting. At the June meeting, items will be presented for the Board's review and discussion on project priorities based on Tax Increment Revenue estimates from the PBC Property Appraiser. Staff will present the preliminary Project Fund budget allocation worksheet to the CRA Board a second time at their July 11, 2017 meeting along with the preliminary budget items within the General Fund. For the third budget meeting, the CRA Board may elect to discuss the budget at their regular meeting to be held on August 8, 2017, or choose to hold a separate meeting. Staff is recommending that the proposed final FY17-18 Budget be reviewed as part of the regularly scheduled Board meeting on Tuesday, August 8, 2017. Regular Board meetings are generally well attended by the community and we tend to see a decrease in public attendance when the budget meeting is held separately. The Board will be given the necessary time to review the draft budget and direct staff on project priorities and staff will plan sufficient time for discussion at the August 8t" Board meeting. The final budget will be presented to the CRA Board for adoption by resolution at the September 12, 2017 CRA Board Meeting and thereafter brought before the City Commission for ratification on the date of the City's 2nd Budget Hearing and Final Adoption of the City's FY17/18 Budget. FISCAL IMPACT: N/A CRA PLAN/PROJECT/PROGRAM: 2016 Boynton Beach Community Redevelopment Plan CRAAB RECOMMENDATION: N/A CRA BOARD MOTION/OPTIONS: Provide consensus on the schedule of budget discussions in June and July with a proposed FY 2017-2018 budget to be presented at the regularly scheduled CRA Board meeting on August 8, 2017. Digitally signed by Michael Simon Michael Simon DN: cn=Michael Simon, o, ou, email=simonm@bbfl.us, c=US Date: 2017.05.05 14:33:10 -04'00' Michael Simon, Interim Executive Director CRA Advisory Board Meeting Thursday, May 4, 2017 @ 6:30PM In Chambers at City Hall 100 E. Boynton Beach Blvd. Boynton Beach, FL 33435 561-737-3256 ADVISORY BOARD AGENDA I. Call to Order II. Roll Call III. Agenda Approval A. Additions, Deletions, Corrections to the Agenda B. Adoption of Agenda IV. Assignments A. Pending Assignments 1. None B. Reports on Pending Assignments 1. None C. New Assignments from April 11, 2017 Meeting 1. Review and Revise Current CRA Special Events Grants 2. Review and Revise Vendor Policy for other CRAs/Non-Profits V. Consent A. Approval of Advisory Board Minutes — April 06, 2017 VI. Information Only A. Financial Report Period Ended April 30, 2017 B. Community Caring Center 1St and 2nd Quarterly Report VII. CRA Board Items for CRA Advisory Board Review & Recommendations A. Old Business 1. Consideration of Purchase and Development Agreement for the CRA Owned Property Located at 222 N. Federal Highway, a/k/a the Ocean One Project Gabled 3/15/17) 2. Status of the 2.97 Acre Project Site known as MLK, Jr. South B. New Business 1. Consideration of the Purchase and Sales Agreement with Steven Reichel for the Property located at 521 NE 2nd St VIII. Public Comment (Note: Comments are limited to 3 minutes in duration) IX. Future Agenda Items X. Adjournment Nntir.P THE CRA SHALL FURNISH APPROPRIATE AUXILIARY AIDS AND SERVICES WHERE NECESSARY TO AFFORD AN INDIVIDUAL WITH A DISABILITY AN EQUAL OPPORTUNITY TO PARTICIPATE IN AND ENJOY THE BENEFITS OF A SERVICE, PROGRAM OR ACTIVITY CONDUCTED BY THE CRA. PLEASE CONTACT THE CRA, (561) 737 - 3256, AT LEAST 48 HOURS PRIOR TO THE PROGRAM OR ACTIVITY IN ORDER FOR THE CRA TO REASONABLY ACCOMMODATE YOUR REQUEST. ADDITIONAL AGENDA ITEMS MAY BE ADDED SUBSEQUENT TO THE PUBLICATION OF THE AGENDA ON THE CRA'S WEBSITE. INFORMATION REGARDING ITEMS ADDED TO THE AGENDA AFTER IT IS PUBLISHED ON THE CRA'S WEBSITE CAN BE OBTAINED FROM THE CRA OFFICE. MINUTES OF THE CRA ADVISORY BOARD MEETING IN CHAMBERS AT CITY HALL 100 E. BOYNTON BEACH BLVD. BOYNTON BEACH, FLORIDA 33435 HELD ON THURSDAY, APRIL 6, 2017, AT 6:30 P.M. PRESENT: Linda Cross, Chair Robert Pollock, Vice Chair James DeVoursney Paula Melley (arr. 6:35 p.m.) Rick Maharajh ABSENT: Thomas Murphy, Jr. Allen Hendricks I. Call to Order The meeting was called to order at 6:33 p.m. II. Roll Call Michael Simon, Interim Director, CRA Theresa Utterback, CRA Business Specialist Bonnie Nicklien, Administrative Asst. Lisa Edmondson, Prototype, Inc. Roll was called, and it was determined a quorum was present. III. Agenda Approval A. Additions, Deletions, Corrections to the Agenda Chair Cross said Items VII A, 1 and 2, were deleted and deferred until the May meeting, per request by the property owner. B. Adoption of Agenda Motion made by Mr. Maharajh, seconded by Dr. DeVoursney, to approve the agenda as modified. In a voice vote, the motion passed unanimously (4-0). IV. Assignments: A. Pending Assignments 1. Discussion and Creation of Draft Community Benefits Agreement Meeting Minutes CRA Advisory Board Boynton Beach, Florida April 6, 2017 Chair Cross distributed documents summarizing what they had discussed at the last meeting, plus a sample agreement. She said that most of the models they had for the Community Benefits Agreement (CBA) and the Tax Increment Revenue Funding Agreements (TIRFA) related to creation of jobs, hiring, providing livable wages, training workshops, job training, etc. She stated that her document would be this Board's report to the CRA Board. Chair Cross then read the resolution regarding the purpose of the CRA and the proper use of its funds. She commented that the concepts can be catered to a particular project. Chair Cross then read the bullet points from her document (see attached). She noted that 150% of the minimum wage is generally considered a livable wage. The City also has a responsible wage ordinance, which could be used as a guideline. Chair Cross addressed penalties for non-compliance with the agreement, suggesting a percentage loss of benefits equal to the percentage reduction in non-compliance. In response to a question by Mr. Maharajh, Chair Cross said that Career Source could play multiple roles: they could help with job fairs and training, provide workers needing to be hired, and a monitor who is hired. Motion made by Dr. DeVoursney, seconded by Vice Chair Pollock, to present the document as a report to the CRA Board. In a voice vote, the motion passed unanimously (5-0). 2. Research and Recommendations Regarding Tax Increment Revenue Funding Agreements and the Current Policy Regarding TIRFA Agreements Chair Cross researched several samples from other municipalities, noting this type of agreement is geared more towards what type of businesses, environment, parking, etc., are desired in the community. She listed six items for focus in a TIRFA agreement - 1 . greement:1. Public parking (up to $35,000 for structure parking and up to $10,000 for surface parking) 2. Retail or office space below market rents for a period of time (three to five years) 3. Affordable housing - 20% of project 4. Creation of permanent specialized jobs in the STEM field 5. Green or LEED properties 6. Businesses that are needed in the community a. It is not enough to have the property developed in accordance with ordinances and regulations. The City has to get "more" out of it in order to give back the TIF. Chair Cross wondered if there was a maximum TIF the City had ever given back, and Mr. Simon replied that the City had given 75% at the most over the course of an eight - 2 Meeting Minutes CRA Advisory Board Boynton Beach, Florida April 6, 2017 year agreement, and that is being requested now. Some agreements have been over 10 years. The decision could be made during negotiation on a case-by-case basis. Chair Cross confirmed that it is not paid on an estimate, but on actual tax payments made. The payments have generally commenced at C.O. Mr. Simon elaborated that if it pertained to job creation, a performance audit would trigger the payment. The more it is tied to ongoing performance audits, the better. Chair Cross wanted the TIF to be rolled back if construction was not completed on time (unless the City caused delays). She also suggesting having the TIF reduced by the percentage of delay. If the developer assigns the project to someone else who wants to get TIF revenues, she thought there needed to be a way to make sure the assignee does what they are supposed to do. Some cities leave the original developer responsible for the assignee's actions. Mr. Simon stated that would be an agreement made between the seller of the development and the new buyer; the CRA now has a document that the buyer is accepting the full assignment responsibilities, and he was interested in having the original owner linked into that. Mr. Simon thought there should be a mechanism provided to the CRA at the time of assignment that would track the TIF revenue to provide transparency. Chair Cross also believed there should be a cap or cutoff on the TIF at some point in time. Dr. DeVoursney remarked that it not be necessary to do the opposite - change the TIF payback if the property goes below the purchase price - because the developers base their forecast on a market analysis. There should be a ceiling, but no "floor." Chair Cross also wanted to see an audit, and Mr. Simon advised that verification of expenditures could be presented at C.O. by a third party. Chair Cross suggested subordinating the incentive payments to the developer to what the CRA pays its own debt service. Motion made by Dr. DeVoursney, seconded by Vice Chair Pollock, to approve the TIRFA report to be presented to the CRA Board. In a voice vote, the motion passed unanimously (5-0). Mr. Simon asked if the Board was comfortable with the community benefit being tied to receiving funds in the TIF agreement. Chair Cross agreed with the idea. B. Reports on Pending Assignments 1. None C. New Assignments from February 14, 2017 Meeting 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 3 Meeting Minutes CRA Advisory Board Boynton Beach, Florida April 6, 2017 Mr. Simon stated that the CRA Board approved a contract with Kimley-Horn for the design from 1-95 to US1. The presentation at this meeting is for the purpose of providing more visual detail on their proposal. Marwan Mufleh, Project Manager for the Boynton Beach Boulevard project, reminded the Board that the project is part of the approved Master Plan for the CRA. The Master Plan called for use of Complete Streets design guidelines to help improve the Boulevard for all users, not just vehicular traffic. Bike lanes, enhanced medians, undergrounded power lines, decorative street lights and furniture, pedestrian crossings, and potential on -street parking are all part of the Master Plan. Mr. Mufleh noted that the number of traffic lanes will not change, and they will make modifications within the existing right-of-way. Mr. Mufleh began a PowerPoint presentation including the following highlights: • Existing conditions of the Corridor and proposed changes • Three general design concepts (presented by Jonathan Haigh, Landscape Architect) o Modern with leafy motif o Traditional o Modern with a blue wave motif There were miscellaneous questions from the Board members regarding locations of some items, materials used in medians and sidewalks, clearance of signage near bike lanes, street -side parking locations. In response to a question, Mr. Haigh advised they had not priced out the individual concepts but was confident they could fit any of them into a defined budget. He believed the three designs would be similar in cost, and they are doing about the same level of treatment in each one. Regarding the sidewalks, Mr. Mufleh said they are looking at 10 feet (which is most desirable for undergrounding the power lines) with one foot of sidewalk easement from the adjacent property owners. He also explained the concept east of Seacrest Boulevard. Mr. Simon advised that the designs will fill in as the area develops. He emphasized they are not eliminating any access or left/right turn lanes. Mr. Mufleh said that the approximate timeline from design to construction involves permitting from FDOT and coordinating with FP&L, probably involving eight months. The beginning of construction depends on availability of funding. Once construction starts, the project should take less than 10 months to complete. 0 Meeting Minutes CRA Advisory Board Boynton Beach, Florida April 6, 2017 Mr. Mufleh continued, saying that traffic will be maintained per a traffic control plan. Lane closure will occur only during off-peak times. He also mentioned that street -side parking is not shown east of Seacrest Boulevard because the right-of-way is not now available. As development occurs, it is hoped that the developers will provide additional space. The curb would move to the outside, and the sidewalk would move to the outside of the parking. Green space on First Avenue north of Boynton Beach Boulevard is not included in the scope of this design. Chair Cross opened the floor to public comment. Woodrow Hay, 427 NW 5 Avenue, wondered if the developers had spoken with the existing businesses and what their feedback was. Mr. Simon said that some had participated in the planning; there has not been any resistance except regarding elimination of a lane, so they reached a compromise. Mr. Hay asked if the speed limit might change, and Mr. Mufleh said it is determined by FDOT in response to common speeds. Mr. Hay expressed concern that people might drive too fast for bike and pedestrian safety. Ramona Young asked how the project coincides with the expansion and redevelopment that FDOT is going to do with 1-95 and Boynton Beach Boulevard. Mr. Mufleh responded that the FDOT project is in a study phase, and they might go to construction in 11 years. He said the timing of the Kimley-Horn project would depend on construction funding. Ms. Young feared that FDOT would undo what the current design will do. Mr. Mufleh said it would be a timing thing, noting that the FDOT concept plan calls for a wider median, and the Kimley-Horn project would work from that perspective. In addition, the FDOT plan does not go very far east of 1-95. Jim Knight, 740 Havana Drive, Boca Raton, commented he owns several properties along the corridor. His tenants are anxious for the project to get going. Mr. Knight expressed concern about street trees breaking up pavers, but said that shade trees are long overdue. He said the green paint on the bike lanes does draw attention to the lanes. Mr. Knight asked about funding, and Mr. Simon explained that the design phase is funded 100% by the CRA. Other funding may come from the MPO and grants from government as the construction phase nears. The City is exploring using mobility fees and he will include that as a recommendation. Mr. Knight expressed his desire that they find a local marine artist if they choose the marine/wave concept. Chair Cross closed the floor to public comment. 5 Meeting Minutes CRA Advisory Board Boynton Beach, Florida April 6, 2017 Ms. Melley would like to see a composite of some of the design elements, such as pink instead of blue waves, and the inclusion of the marlin/swordfish. Mr. Simon advised that the decision-making of the concepts belongs with the design team. Mr. Mufleh explained the team will bring all the alternatives to the CRA and City, going through pros and cons for different materials, costs, etc. Then they will move ahead with the design. Motion made by Ms. Melley, seconded by Mr. Maharajh, to proceed with the selection process involving the Boynton Beach Boulevard redevelopment, rehabilitation, and design. In a voice vote, the motion passed unanimously (5-0). V. Consent A. Approval of Advisory Board Minutes March 02, 2017 Motion made by Dr. DeVoursney, seconded by Vice Chair Pollock, to approve the minutes of the March 2, 2017, minutes as presented. In a voice vote, the motion passed unanimously (5-0). VI. Information Only A. Financial Report Period Ended March 31, 2017 (No Comments) VII. CRA Board Items for CRA Advisory Board Review & Recommendations A. Old Business 1. 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 to May mooting) 2. Consideration of Tax Increment Revenue Funding Agreement for the Ocean One Project (Tabled to May mooting) 3. Six Month Financial Update and Capital Project Review (No comments) B. New Business Ms. Melley requested that Item B3 be moved up on the agenda due to audience representation on the item. The Board agreed by consensus. 3. Consideration of the Letter of Intent from St. John's Missionary Baptist Church for the Purchase of the CRA Owned Property Located at 700 N. Seacrest Boulevard, also known as the Ocean Breeze East Site 9 Meeting Minutes CRA Advisory Board Boynton Beach, Florida April 6, 2017 Reverend Jovan Davis, pastor of St. John Missionary Baptist Church in Boynton Beach, introduced Guarm Sims, Michael Hartman (Acquisition Developer from Roundstone), and Mark Karageorge (church member). Mr. Sims gave a brief history of their church, and gave a PowerPoint presentation. He said that the project needs a solid developer, which is why they chose Roundstone Development. He gave an overview of Roundstone. Highlights of his presentation included: • The Vision: o Unit details o Common and unit amenities o Retail component o Green building promoting energy efficiency o Local participation plan o Advertising/marketing through various media o Local workers o Develop infrastructure to get people job -ready, partnering with various entities • Conceptual site plan o Family Life Center accessible to all community residents • Elevation o Three stories, 108 units o Comparable to Del Ray Village Square facility Mr. Sims emphasized that a major community stakeholder has stepped up, presenting a financing option that will avoid past mistakes. Mr. Karageorge stated he had been involved with the site on and off for 13 years and described the past financing failures. He stated that if they are not approved by the CRA for the HUD 221-D(4) (Option #1), their backup plan is to go with the 9% tax credits option. Option #3 would be to proceed with the "4% SAIL tax credit." Mr. Hartman from Roundstone stated that they wish to avoid going through a competitive process. He said his company has been working with the church and the City. He said that meetings with the Mayor and representatives from the church and with Mr. Simon have led to a potential solution to their financing. He said they need to fill a $6 to $7 million gap. If they had a steady stream of income for 20 years, they could borrow against it under the HUD 221-D(4) program. Mr. Hartman explained the HUD 221-D(4), noting it is the "cheapest" financing available. He proposed taking the CRA budget to service a secondary HUD 221-D(4) loan. Mr. Hartman said they would generate about $110,000 in property taxes. HUD will give 7 Meeting Minutes CRA Advisory Board Boynton Beach, Florida April 6, 2017 them the loan based on a guaranteed payment stream from the CRA, requiring a 1.00 debt service coverage. In addition to that income and the rental revenue, Mr. Hartman said they would borrow tax-exempt bond money from the Palm Beach County Housing Finance Authority as a construction loan. That would allow them to apply for the 4% non-competitive housing tax credits - they come automatically with the bonds with no competitive process. Mr. Hartman continued that the only reason they would do the bonds is for the tax credits, because they will allow them to bring in over $7 million in equity through sale of the credits and to the development. In conclusion, there would be the 221-D(4) loan, part of which will be 20 years and part 40 years, and tax credit equity to finance it. The IRS sets the tax credit rate, which is 3.4%. A limited partnership will be formed to borrow money from HUD under the note; the partnership will own all of the assets, but the general partner will be the church. The general partner controls. The tax credit investor owns 99%, but is a limited partner and cannot make any decisions concerning the property. There will be a separate partnership between the church and Roundstone because the lender will want collateral. Mr. Simon said the appraisal has been completed, and he would find out the exact amount. Chair Cross reviewed that the church needs $1 million plus $450,00 per year. The CRA would be getting back TIF revenue of $100,000, leading to a net $350,000 loss for the CRA. Mr. Karageorge cited other projects that had similar funding through the CRA, such as places that have bought land for $10. Mr. Hartman reviewed that there would be $6 million from the TIF money when it is capitalized under the HUD loan. There will be a second HUD loan of $6.3 million, and $7 million of tax credit equity in the development, plus $1 million to build it (total cost to build of $20.6 million). Mr. Karageorge pointed out that they used conservative figures, and will not know the final numbers until they get the final bids. He stated that the $450,000 is roughly 4% of the CRA's current total budget. The church is putting in job training, developing a work force, giving preference to minority contractors and District 2 contractors, and doing three job fairs at St. John's (basically the Community Benefit Agreement items). Mr. Karageorge added that the church will oversee the property management for the next 50 years. Chair Cross confirmed that the only difference between Option 1 (the HUD loan) and Option 3 is that Option 3 is the sale loan (4%), which is a lottery. Mr. Karageorge did not see why they would choose Option 3 when they have Option 1. He said they feel 0 Meeting Minutes CRA Advisory Board Boynton Beach, Florida April 6, 2017 more confident working with the Palm Beach County Housing Finance Authority because they have worked together and know the site. Mr. Hartman discussed the timeline, saying that the worst case (Option 3) would be that they would have to wait until January of 2018 to see if they got a good lottery number. With Option #2, they would be waiting a year because the final decision will be made in March of 2018. If the Board approves Option #1, they would start application for the loan, with the likelihood being that it would close after the end of 2017. They would expect to break ground in January of 2018, and they would expect to get their C.O. in December of 2018, with full occupancy 30 days after opening. Mr. Hartman advised they want to incentivize a company to put in a grocery store - the rent is set at $1.00 per square foot per month. Chair Cross confirmed that the $350,000 coming out of the CRA funds would come out of the Project Fund, which has a balance of $6 million. Mr. Hartman explained that they stretched out the payments to 20 years to keep the annual CRA payment as low as possible. He said there is pre -payment penalty for the first five years of the loan. Dr. DeVoursney wondered if there would be any time when the project would revert to being tax-exempt. Mr. Hartman believed there would not be as long as the limited partnership was in effect. He would have to look into the period of time after 15 years. Chair Cross opened the floor to public comment on Item VII B 3. David Barker, 8 Southport Lane (from District One), spoke in favor of the project, pointing out that it is good for the City and adds "togetherness." Willie Akins, 726 NE 1 Street, said he lives across the street from the subject property and said he is glad it has the opportunity to be developed. Mr. Akins supports the project "120%" and believed it would aid in cutting crime and adding to development. Chair Cross closed the floor to public comment on Item VI I B 3. Several Board members expressed support for the project, with Ms. Melley additionally suggesting more details on the structuring of the schematic and the timeline with benchmarks and accountability. Motion made by Vice Chair Pollock, seconded by Dr. DeVoursney, to recommend Option #1 to the CRA Board. In a voice vote, the motion passed unanimously (5-0). [Vice Chair Pollock left the meeting] At this point, Chair Cross returned to Agenda Item VI I B 1. 9 Meeting Minutes CRA Advisory Board Boynton Beach, Florida April 6, 2017 1. 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 Chair Cross confirmed that the audit had been completed. Motion made by Mr. Maharajh, seconded by Dr. DeVoursney, to approve the system audit reports and payment release to Hart Seabourn Cove, LLC. In a voice vote, the motion passed unanimously (4-0). 2. Consideration of the Purchase of 340 NE 10th Avenue (MLK, Jr. Blvd) Mr. Simon provided an overview of the property, appraised at $46,500, and the offer is for $50,000. He said the property is critical for the CRA with regard to future development and access for a redevelopment project. They could get frontage on Martin Luther King Boulevard and provide continued ownership through the right-of-way. Motion made by Ms. Melley, seconded by Mr. Maharajh, to follow the CRA staff's recommendation of the purchase of 340 NE 10 Avenue for the reasons mentioned. In a voice vote, the motion passed unanimously (4-0). Mr. Simon reported on the Career Expo, thanking Ms. Nicklien for her work on the successful event. VIII. Public Comment Chair Cross opened and closed the floor to public comment. IX. Future Agenda Items A. Discussion and Consideration of District Clean Program X. Adjournment Upon motion duly made and seconded, the meeting was adjourned at 8:48 p.m. [Minutes transcribed by J. Rubin, Prototype, Inc.] 10