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Minutes 05-09-17MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD ON TUESDAY, MAY 9, 2017, AT 6:30 P.M., IN COMMISSION CHAMBERS CITY HALL, 100 E. BOYNTON BEACH BOULEVARD BOYNTON BEACH, FLORIDA PRESENT: Steven B. Grant, Chair Justin Katz, Vice Chair Joe Casello Mack McCray Christina Romelus I. Call to Order Mike Simon, Interim Executive Director Tara Duhy Board Counsel Chair Grant called the meeting to order at 6:30 p.m. II. Invocation The invocation was given by Pastor Davis, St. John Missionary Baptist Church, followed by Mayor Grant leading the Pledge of Allegiance to the Flag. III. Roll Call Roll call revealed a quorum was present. IV. Agenda Approval A. Additions, Deletions, Corrections to the Agenda Chair Grant requested to add a Letter of Intent Policy to V. Legal, and add an announcement for the new Financial Specialist, Jobara Jenkins. Mr. Katz requested moving Future Agenda Items 16. B, a discussion of the performance period for the Interim Executive Director, before potentially entering into a full-time contract to New Business item 14 H. B. Adoption of Agenda Motion Ms. Romelus moved to approve the agenda as amended. Mr. McCray seconded the motion that unanimously passed. Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 9, 2017 V. Legal Attorney Duhy explained she had requested this item be put on the agenda due to the interest in developing the CRA District and the number of Letters of Intent (LOI) the CRA Board has received. Mr. Simon and she discussed bringing forward a procedure to establish a clear time frame and parameters to be followed by staff and the Board to process the letters as they are received and ultimately approved or denied. A LOI can come in at any time as it is driven by an interested purchaser of a property. When such a letter is received, staff proposed to put it on the agenda for Board consideration and give staff direction as to whether the Board is interested in pursuing the matter. The Board could also direct staff at that time to publish notice in the paper of the Board's potential intent to dispose of the property. This would begin the 30 -day notification period. After the notification period, staff would then place the LOI and any additional interest received on the agenda for the Board to consider. Staff will develop a list of documents and information they would obtain from the submitter that would answer questions about financing, timing, development schedules and other items the Board needs to consider. If desired, Attorney Duhy would work with staff to develop a policy. There was consensus for Attorney Duhy to proceed. VI. Informational Items and Disclosures by Board Members and CRA Staff: a. Disclosure of Conflicts, Contacts, and Relationships for Items Presented to the CRA Board on Agenda Items Vice Chair Katz had no disclosures, but announced he became the duly elected President of the Palm Beach County Classroom Teachers Association (CTA). He announced the matter not only because it will have an impact in Boynton Beach affecting teachers and students in the school, but he also wanted to thank individuals in the City, coworkers and friends, Commissioners and Board members who assisted him with his effort. It was a close race, and if not for the friendships he made on this job, he may have not met with success. He looked forward to assisting Boynton Beach schools and the District at large. Mr. McCray disclosed in reference to Item 13.13. Consideration of the Letter of Intent from St. John Missionary Baptist Church, (SJMBC) he is a member of the Church. He has nothing to gain or lose if he votes on the initiative and he has no conflict of interest. He also attended South Palm Beach County Delta Sigma Beta Alumni Scholastic Awards held at SJMBC. He noted some alumni were present and he praised them for a job well done. Chair Grant met with the owner of Del Sol Bakery this past month, David Scott and received a call from Pastor Davis. He attended Sunfest and people were asking when the City will have a similar sized event such as a paid concert and he had responded not this year, but maybe next. Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 9, 2017 Ms. Romelus had no disclosures to make. Mr. Casello had no conflicts, but commented he, Ms. Romelus and Chair Grant attended the press conference about the Police Department rolling out their body cameras and it was enlightening. The community has been asking for the cameras and he was glad the Board and City Commission supported the issue. He went to Tallahassee watching legislators at work on the Chamber floors and announced the pending CRA Bills were defeated. He also announced, while in Tallahassee, he filed to run for House Seat, District 90 held by Lori Berman who will term out. Chair Grant wished him well. Mr. Simon had previously emailed the Board introducing new Financial Specialist Jobara Jenkins who will take Vicki Hills' place as she moves into Finance Director Susan Harris's position upon Susan's retirement. Ms. Jenkins has expertise with internal and external auditing, journal entries and staff welcomed her. Ms. Romelus thanked Ms. Harris for her service and impeccable work over the years. b. Informational Announcements VII. Announcements & Awards a. Movies in the Park Mercedes Copans, Special Events Coordinator, announced the CRA aired the film Hidden Figures on May 5th. Despite rainy and windy weather, about 100 people attended and they were entered into a drawing to win gift certificates to CRA merchants featured in the films preview which included Del Sol Bakery, Tsunami Subs, Sweetwater Bar and Grill, Troy's Barbecue and Yoga Fit. The final Movies in the Park event will be on June 2nd at 8 p.m. featuring School of Rock, a PG -13 rated film. Food and beverages will be available for purchase from Troy's Barbecue Food Truck. b. Music on the Rocks Ms. Copans advised the last Music on the Rocks event was held on April 21St, featuring Country pop band, Runaway Mile. Approximately 250 people attended the event. The next Music on the Rocks event will be on Friday, May 19th Music will be provided by the Jeff Harding Band which is a contemporary pop and rock band. Food and drinks will be available for purchase from Food Truck Invasion venders and a mobile bar service from 7 p.m. to 10 p.m. C. Habitat Home Dedications - Model Block Project - Speaker Jeffrey Fengler Jeffrey Fengler, representing Habitat for Humanity, thanked Mr. Simon, CRA staff, and the City Commissioners. He advised they are always impressed with the partnership N Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 9, 2017 the CRA and Habitat for Humanity have, and they both have the vision to make Boynton Beach a better place to live for low-income families. Mr. Fengler explained they just completed two homes at 137 and 141 MILK Jr. Boulevard on the Model Block project. The first family moved in this weekend and the next family will move in next weekend. Habitat works with three CRAs and Boynton Beach is the only City that really embraces what they do, works with them to get properties and move families into new homes. The one family that moved in this weekend had a little girl about eight years old. Habitat sent a representative there to check on something and she said "Look at my room!" It was the first bedroom she ever had. He explained he submitted a Letter of Intent for an additional lot on the Model Block and hoped to build a new home in that area. Mr. McCray thanked him and explained much of what was occurring in Boynton Beach was due to Habitat for Humanity. He praised them for stepping up to the plate and making people feel welcome. Mr. McCray attended the dedication of the two homes and requested they keep up the good work. Mr. Fengler advised they were starting two new homes on Thursday. 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 E. Approval of FICE Design, Inc. for Commercial Rent Reimbursement Grant Program F. Approval of Boynton Beach Real Estate Pros for Commercial Rent Reimbursement Grant Program Motion Vice Chair Katz moved to approve. Mr. McCray seconded the motion that unanimously passed. IX. Pulled Consent Agenda Items: None X. Information 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) .19 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 9, 2017 Susan Oyer, 140 SE 27th Way, congratulated Vice Chair Katz on his election as the President of the CTA as she worked hard to help him win. He thanked Chair Grant who attended one of her classes in his position as Mayor, and he answered many questions about government. She hoped he would return. She enjoyed the Movies in the Park. XII. Public Hearing: 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) Motion Mr. McCray moved to remove from the table. The motion died for lack of a second. 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 Side Mr. Simon explained this is a continuation of the process for review of the Letter of Intent from St. John Missionary Baptist Church, (SJMBC). Staff had published a Notice to Dispose which ends on May 15th. The Board can discuss it or choose to wait until after the 30 days. Chair Grant asked if the Board had any additional questions for Roundstone who was present. Vice Chair Katz suggested, per the CRA attorney and given the disposal window ends next week, they table the item to see if they receive any other offers. Mr. McCray agreed not to take action until June, but would listen to comments. Chair Grant asked, regarding the three financing options which were the 9% tax credits, the 4% SAIL program and the non-competitive tax credits, if they were willing to seek the tax credits first and then if unsuccessful, seek the non-competitive financing package. Guarn Sims, SJMBC, explained as they previously discussed, they like the suggestion they pursue the 221 D-4 structure and the 9% tax credits concurrently, and if successful with the tax credits, they withdraw from the 221 D-4 program. If unsuccessful, they would still be pursuing the 221 D-4 option. Mr. Casello wanted, for future discussion, other ways to finance the project. He thought SJMBC could agree to pay off all or a portion of the CRA's interest payment over time. St John Missionary Baptist Church or Roundstone could contribute some of the developers fees to reduce the CRA's contribution and debt. The CRA could partner 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 9, 2017 with Roundstone to develop the property and pay SJMBC to manage the facility and thought the Board should start thinking about the MLK, Jr. Boulevard South project before constructing Ocean Breeze East. He thought if the Board would offer land appraised at $1.5 million and $1 million in cash, they could potentially issue an RFP to see if any other developer would be interested in that kind of a business deal. David Katz, 67 Midwood Lane, commented the notice was published in the paper on April 14th. Thirty days is a Sunday, and he asked if that meant anyone who might submit has until Monday the 15th to respond and learned they did. Mr. Katz commented on the Letter of Intent and agreed with giving the land away, but felt the scope has changed significantly from what was out there before. He commented the Board was told the land was $1.5 million, noting the land tripled in value over a year, and at the last meeting, the Board was told the property was valued at $800,000. He agreed with Mr. Casello that because the scope has significantly changed, that the Board should accept letters of intent and issue an RFP because giving the land away changes everything. Ms. Sims explained SJMBC and Roundstone submitted for the record, that as of today, the team had productive and informative conversations with Board members and the Interim Director. In almost every meeting, every suggestion which was presented to aid in reinforcing this project, including financial -related information, was researched and applied to revise performance. This included decreasing TIF from 20 years to possibly five years, applying any surplus from the project directly to the debt, confirming payments towards the loan would not commence until after receiving their certificate of occupancy and pursuing the 9% tax credits alongside with applying for the 221 D-4. One constant question they posed to the Board members is where the long -overdue HOB project ranked as a priority for the entire Board. The community has heard throughout the years the project is a priority, but when the CRA has and will consider committing millions of dollars towards other CRA projects, such as One Boynton LLC and the Town Square and the community experiences continued failure and/or delay with the Ocean Breeze East project, they wonder if this project is truly a priority for the CRA. The team has shown that City stakeholders within and around the HOB community, including BIG, INCA, Forest Park, HOB, the CDC, the Boynton Clergy and the CRA Advisory board are all on board with this project being a top priority. The entire City deserves and will financially benefit from its completion for years to come. The community deserves and expects more from the Board and the project deserves special and abnormal consideration from the Board showing extraordinary commitment to complete the project. The CRA is a needed investment partner for the project, which means the City and HOB community is depending on the CRA to step up and bring the project to fruition. The Board has said affordable housing is important for the City and the HOB community. The same as other market rate projects the CRA is considering investing millions of dollars. Mr. Sims implored the Board to show the City and the community they can come together as one to get the project done. The project is a win- win for all and it is a matter of the priorities to the Board regarding affordable and market .o Meeting Minutes Community Redevelopment Agency Board Boynton Beach; Florida May 9, 2017 rate development. He urged the Board to get the project moving and deliver what the City and community needs, which is a first-class affordable senior community. Mr. Sims explained they respect the Board's decision to delay the item until the June meeting, but requested the Board commit to ensure the item will appear on the agenda and consist of a final vote affirming the Letter of Interest from SJMBC and Roundstone Development LLC. Mr. McCray favored the SJMBC project. He commented the project that was supposed to have been placed on MLK did not come to fruition. The only project to consider in District II is the SJMBC project. He was glad the development team would be willing to return to the June meeting to comply with the law. Motion Mr. McCray moved to approve to table the item until the June 13" meeting. Vice Chair Katz seconded the motion. Chair Grant asked if the item still had to receive City Commission approval and learned it did. Ms. Romelus favored the project and commented she wants to accept the LOI with negotiation when the item is heard in June. There are certain parts of the letter that have wiggle room to ensure both parties come out ahead. She requested, if possible, the project be available to all ages and not just seniors as there are college age students and young families. She did not know why the project would be a senior project and wanted to explore other options. Vice Chair Katz agreed putting a 55 and older component in the project is not the direction he would want. He supports the project fundamentally, but would not make a definitive commitment at the next meeting. There are unanswered questions and the Board does not know if there would be any other proposals received. It could appear the project was predetermined if the Board would consent to saying the Board will definitely make a decision before seeing other proposals, if any. He looked forward to seeing the item return in June. It is important the Board make the best decision for the CRA. Attorney Duhy clarified the Board is not legally permitted to vote on something prematurely and they cannot commit to specifics at this meeting, but can acknowledge support of the project. Mr. McCray recalled there have been several individuals who said they would develop a project that were unsuccessful. He favored the project. Mr. Casello disagreed with some of the comments made that development of a project was not a priority for the Board. For the last four years, the Board had three or four proposals that did not come to fruition and the land was offered numerous times for development. Mr. Casello liked the concept and favored the concept, but was having 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 9, 2017 trouble with the financial bottom line for the City. He hoped they could work out the details and discuss them in June. The motion to table unanimously passed. C. Status of the 2.97 Acre Project Site known as MILK, Jr. South Mr. Simon explained the backup material contained emails received from Robby Block of Nurock to ascertain where they are in the application for the 9% tax credits through the Florida Housing Finance Corporation, showing they are in second position in the lottery. Nurock was not going to challenge the ranking and was beginning to potentially look for other means to finance the project until June 30th per the contract end date. Nurock has not officially terminated the contract. Mr. Simon spoke with Mr. Block and the President of Nurock to gain an understanding of their plans for the contracts they have with property owners and their terms, and they will work on issues to leave an opening for the CRA to move forward. There will be more detail in the upcoming days and they are aware of their termination deadline. Mr. Simon added they are optimistic they can find funding. Mr. McCray asked if there was the possibility they may come with new plans or ask for another attempt at the next funding cycle. The project, as is Ocean Breeze East, is a priority in the CRA plan and HOB Neighborhood. He thought the CRA should give them every opportunity to secure funding and is worth exploring. He supported Nurock securing funding in the next 30 days. XIV. New Business A. Community Caring Center 1St and 2"d Quarterly Report Mr. Simon explained the first and second report was in order, was submitted and is in compliance with the agreement. Mr. Casello explained the work the Community Caring Center does is outstanding community work and he was proud to be a part of that and helping them financially as much as possible. Motion Mr. McCray moved to approve. Mr. Casello seconded the motion that unanimously passed. Sherry Johnson, Executive Director, Community Caring Center, announced plans for a job fair in September and advised they were assembling their marketing materials. The Center also has a few grants pending and they will find out in June if they are successful. If so, they will begin a culinary job training program and create partnerships with tech schools so students can move from the Community Caring Center to the tech n Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 9, 2017 schools and then the Executive program at the State College. She will provide the dates in the future. B. Consideration of Request for Event Sponsorship by the GBDC Entrepreneurship Institute Mr. Simon explained this item was for the Board to consider sponsoring the GBDC Entrepreneurship Institute and their event held at Benevenuto called S. Florida Regional Business and Finance Conference on May 25th. The categories of sponsorship were Gold, Silver and Bronze with commensurate donations of $1,500, $1,000 and $700 respectively. Mr. Casello disclosed he is on the Board counsel there is no conflict of interest. Mr for sponsorship. of Directors and he was informed by legal McCray inquired what the CRA would gain Annette Gray, founder and Executive Director, was holding off on the primary promotion and advised CBS radio offered them Public Service Announcements (PSAs) and a 1,000 piece mailer ready to be issued. The CRA would be promoted as a sponsor in those media outlets. Additionally, the CRA would have a presence at the event as several board members will participate in the panel discussion regarding the City, leadership perspectives, economic development programs and support of the youth program. She explained this event is a fundraiser for their summer youth Future Leaders and Entrepreneurs Program. She has 20 to 40 young people in the program that write a business plan and start a business. These funds would be used for the Business Plan Competition Prizes and funds to start the business. The big picture is job creation and development for young people. Mr. McCray noted Ms. Gray was a former CRA employee. He favored a $700 sponsorship. Chair Grant expressed concern the business is not in the CRA. Attorney Duhy explained as long as the event and the money is consistent with the CRA plan and in the best interest of the CRA, the Board can fund it. It is a policy decision for the Board with Mr. Simon providing direction. The keystone how to spend is in the redevelopment plan. Chair Grant asked if there is a budget item for sponsorships. Susan Harris, Finance Director, explained there was in the Project Fund, Community Meeting and Workshops budget line item. The event is at Benvenuto in the CRA District. Chair Grant asked if the CRA has any policies for other non -profits that request sponsorships either from the CRA or when holding an event in the CRA. Mr. Simon explained the CRA has a special events grant to permit for, and non-profit entities to apply for, marketing and various aspects of the event if the event brings additional attention to local area CRA businesses. Mr. Simon explained the special events grant and vendor policy is being reviewed by the CRA Advisory Board. He hoped to bring more defined parameters to these types of situations. Chair Grant requested 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 9, 2017 confirmation this would not fall under a special events grant item and commented it is a special event, but is available under marketing because of budget. Mr. McCray commented the request is for youth and future business and youth leaders. He thought this was how the Board should invest their funds. Mr. Casello also noted the great work the Institute does. Motion Mr. Casello moved to make a Silver donation to the cause as opposed to the Bronze level donation. Mr. McCray asked about the donation amount, learned it was for $1,000, and seconded the motion. Chair Grant asked how much of the money would go to CRA youth. Ms. Gray explained most of the participants come from the HOB as she had partnered with the Sims Center. She pointed out these are overhead and marketing costs. Benvenuto is in the CRA District. Ms. Romelus wanted to see a cost breakdown of the grant funds and how proceeds are used. Mr. Simon explained these perimeters can be set by the Board and they can require budget or attendance documentation. Ms. Romelus asked if this was for Boynton Beach High School students. Ms. Gray commented there are three students returning who presented in the fall. The students will come back and continue to grow their business. The program this summer will recruit new businesses from the area and the program is open to regional youth. The conference is in the CRA District. Mr. Casello asked when the CRA funds an event' if they ask for a breakdown and learned they do. Mr. McCray did not want to get hung up on too much paperwork. After brief discussion there was agreement for Ms. Gray to return to the Board and make a brief presentation. Ms. Gray also announced Vice Chair Katz was opening the conference and sitting on the Leadership Panel as was Mr. Casello. Chair Grant requested when the Academy is finished, the students return to make a presentation. The motion unanimously passed. Ms. Romelus asked if they could create a category for events like this and learned staff could. It would also be addressed during the budget. Chair Grant asked if the Board wanted to budget community support funds for each Board member or the Board collectively draw from a pool of funds. Mr. Simon recommended having a line item with the policy and not individual allotments for the Board members. C. Consideration of Special Events Grant for the Heart of Boynton Community Association, Inc. Mr. Simon explained this application is a special event request not to exceed $5,000 for the HOB Community Association, Inc. for their Prayer in the Park scheduled for July 29th 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 9, 2017 Mr. Jenkins, President of the Association, was present. Mr. McCray asked how much was needed for the event and learned they need $26,700. Mr. Jenkins explained 80% of the amount was covered and the requested $5,000 will be paid to the City for items needed to hold the event such as police services, barricades, security, port -o -lets and more. It will be held at the Carolyn Sims Center from 12 noon to 5 p.m. Mr. Casello noted some documents were not provided and asked if legally, they needed to be provided to the Board. Attorney Duhy responded if there is an adopted policy, she would defer to Mr. Simon, but from a statutory perspective, there was no requirement that needs to be met. Mr. Simon explained there is information provided on the cover. The eligible items under the grant were listed such as entertainment, advertising, event equipment, tents, tables, chairs, staging and security. Mr. Casello asked if the Board would be in violation if they did not have the IRS Determination Letter, Form 90 and Schedule A or 990EZ. Attorney Duhy explained the grant is a reimbursable grant which means they have to properly document all of the expenses and all of the forms would be required at that time and the Board could approve the request contingent on them submitting the necessary information. Mr. Jenkins explained the 990EZ is a form for tax purposes only and they use a W-9 form. This means when they claim the 501(c) (3) they do not claim a tax. The documents and insurance had been turned in. Mr. Casello wanted to ensure the CRA receives the proper documentation. Mr. McCray was glad the group got off the ground in the HOB as a productive group. Motion Mr. McCray moved to offer the $5,000 and the requestor return with all the legal documentation regarding how the funds would be spent so they will be in compliance with the IRS from the CRA paperwork. Mr. Jenkins advised all the rules and regulations have been followed. There are 28 churches participating and he invited the entire City. Chair Grant requested confirmation the Association was a non-profit and had an IRS Determination letter and learned they did. He also inquired if they would request donations at the event such as a 50-50 raffle or silent auction so next year the event would be bigger and better and learned they would. Mr. Jenkins explained they have other events in the future, but the City needs more Prayer in the Park and they were requesting all 28 churches in and out of District If of all denominations come together in unity and spirit. Mr. Simon clarified the motion should be to approve a maximum of $5,000 as a reimbursable grant with the proper documentation about the event's expenses. Ms. Romelus had an issue with the request and expressed she did not feel this event was what the grant was intended. She asserted this is religious and government should not play a role in religious events. She also thought the request creates a slippery slope 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 9, 2017 and opens the door for other religions, possibly even for satanic worship, to make requests. She questioned if the Board would be penalized for supporting the item. It was hard for her, as a government entity, to provide funds for a religious event; however, she wholeheartedly supported the event. Mr. Jenkins explained the event is more than just a religious event. It is for all people. He clarified they decided on a religion theme because they are bringing people together and they will be giving backpacks and other items away. They are bringing people together to stand up for unity in the environment. Mr. McCray commented changing the name to Unity Fest may be better. Mr. Casello asked if they have invited other organizations besides the church and learned they had. Information has been sent to churches and communities and Mr. Jenkins explained they have lists of entities that will be included, including all the clubs. Vice Chair Katz appreciated the comments made by Ms. Romelus. He thought about conflicts with government funds and religious issues and thought there was a degree of scrutiny that had to be adhered to with events with religious ties. He thought the Board should discuss the issue from time to time when other requests are made. Chair Grant understood Vice Chair Katz's comments, but pointed out the Board has an invocation at every CRA Board meeting and the Board does pray for government. Chair Grant favored the request and thought it was needed in the community. He walks along MLK and is being asked when they will have another event. He asked if there will be a rain date and learned there would. Mr. Jenkins commented he would be sending an invitation to each Board member and he hoped they would attend. They pray for everyone in the community and they are trying to rebuild and rejuvenate the City. Vice Chair Katz seconded the motion that unanimously passed. D. Consideration of ILA with the City of Boynton Beach for Partial Funding for the Economic Development Director Mr. Simon explained this item was a partnership agreement for partial funding for Mr. David Scott, the new Economic Development and Strategy Director. The Interlocal Agreement (ILA) specifies a percentage of time spent on CRA related issues of 25%, which is equal to the maximum amount of his salary the CRA would agree to pay at this time. In this fiscal year, the amount totals to a maximum of $23,795. Mr. Scott is already active in his role. Mr. Casello asked if the Board has done this in the past and learned the CRA had with the Neighborhood Police Unit and the Community Standards outreach. The CRA had not partially funded a Director's position. Mr. Simon explained the position is new to Boynton Beach. There was a prior Economic Development Planner, Scott Kline, but the CRA did not fund a percentage of his work. The request was made to help with funding for the Director's crossover in his job description for work on CRA projects in the CRA District. Mr. Casello felt if the City hires 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 9, 2017 a director or a department head, he takes care of the entire City. Mr. Simon understood and explained it is a Board decision. Staff found a way to link the work Mr. Scott would be doing that is intertwined in the CRA. Chair Grant met with Mr. Scott and explained there are specific CRA items that are not on the City and the CRA would pay for Mr. Scott to create a strategy for the CRA and for grants. Mr. Scott can assist with all the new policies the CRA wants to implement. If they do not pay for the services, the CRA will not receive them. The CRA is creating several new policies. They are also helping the City. Mr. Casello asked if the CRA was paying for speciai services such as public safety and learned they were. Mr. McCray agreed with Chair Grant. He pointed out they have benchmarks and if Mr. Scott does not live up to them, the next year the City will not receive any payments for him. Ms. Romelus thought the position was needed. She commented tax dollars are being paid to have people in this position to protect small businesses and owners. She was fine with paying the funds as it is needed and thought Mr. Scott's experience will assist the CRA. Vice Chair Katz supported the item and respected Mr. Casello's thoughts. He pointed out Mr. Scott could address CRA items Tallahassee legislators who are opposed to CRAs do not like. As long as it is legal and Mr. Simon recommends it, he would support it. Tallahassee was looking for excuses to disband, limit or restrict CRAs. Motion Mr. McCray moved to approve. Mr. Casello seconded the motion that unanimously passed. Mr. Simon advised he appreciated the discussion. E. Consideration of the Purchase and Sales Agreement with Larry Finkelstein for the Property located at 340 NE 10th Avenue (MLK Jr. Blvd IT, • • Mr. McCray moved to remove the item from the table. Mr. Casello seconded the motion that unanimously passed. Mr. Simon explained this item was tabled at the last meeting because they were informed of a current lease the property owner has with the Haitian Pentecostal Church at the end of MLK Jr. Boulevard on the east side that is currently extended through December 31st. The Church uses the lot for overflow parking and pays $60 a month to maintain the lot and provide insurance. The CRA has allowed parking on CRA propertX for the Bride of Christ Church while they were under construction now on NE 11t Avenue. Mr. Simon had no objection to allowing parking on the lot. Staff will contact the church and let them know what the CRA's expectations are now as a public agency. The property location has value to the CRA. Legal reviewed the lease if the Board was 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 9, 2017 in favor or purchasing the lot now or waiting until the lease expired in December and hoping the property would still be available. Mr. McCray asked what benefit the land had to the CRA. Mr. Simon pointed out the meeting backup detailed a plan for this block to be zoned and have a land use for General Commercial activity in the future as the CRA redevelops the corridor. Currently, the CRA and City own the three lots to the south which combine to address other issues in the Cottage District. It could provide new industry on the corner and it provides access between E. MLK Jr. Boulevard and NE 9th Avenue. When travelling east from Federal Highway on E. MLK Jr. Boulevard, there is no left hand turn to access NE 9th for three blocks. The land could provide an opportunity to build a road to connect since this is the corner of a General Commercial node per the plan. The price of the property is in-line with the appraisal and is in close proximity to land they own, being adjacent to the building occupied by the Neighborhood Police Program. It would provide opportunities for redevelopment and growth of the corridor. The property appraised for $46,000 and the seller would only accept $50,000 plus closing costs. Mr. McCray asked who would receive the rent and learned the CRA would. He favored the purchase. Rev. Bernard Wright, 713 NW 2nd Street, CEO of the Robert E. Wells Foundation, explained Mr. Finkelstein owns a lot of the property and he has profited to about $6.7 million in the past. He was concerned if Mr. Finkelstein was purchasing the property for future redevelopment and did not want anyone having a monopoly on the land. Chair Grant explained Mr. Finkelstein was only receiving $4,000 over the appraised value of the land. Motion Mr. McCray moved to approve. Mr. Casello seconded the motion that unanimously passed. F. Consideration of the Purchase and Sales Agreement with Steven Reichel for the Property located at 521 NE 2nd Street Mr. Simon explained this item is a contract to purchase property that was previously identified in the staff presentation for the Cottage District. This property is on the east side facing the Cottage District site on NE 1St Street which extends to 2' Street, fronting two streets. The properties are duplex properties with landlords that would otherwise not improve the duplex to the degree that would make the Cottage District a single-family home site appealing to developers or individuals interested in purchasing homes. The CRA attempts to accumulate properties that are adjacent to other CRA properties to redevelop them. The acquisition is at the will of the Board. After meetings with developers interested in building single-family homes in the Cottage District, Mr. Simon felt, that this area of 1St Street hindered their willingness to invest in the project at this 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 9, 2017 time. Mr. Simon did not know if the owners would improve the properties in the future and had thought about developing grant programs to offer landlords to improve their properties and convert duplexes to single-family residences to stabilize areas with home ownership. The property appraised at $166,000 and the owner accepted the price. Any property the CRA acquires is based on what the property is worth at the time of the appraisal. Sometimes what the CRA intends to do with the property after the acquisition is not in line with its current value and it appears the CRA is paying a higher value for the property. He noted it is the nature of CRA business and it does occur from time to time. Mr. McCray asked if the property would be demolished after the purchase. Mr. Simon explained the terms are the property would be sold to the CRA vacant. Depending on the condition of the property, the CRA can determine whether to convert the property to a single-family residence, but from what he saw, it was likely the property would be demolished and a new home constructed as part of the Cottage District or infill housing with the CDC, Habitat for Humanity or some other entity. Mr. McCray favored demolition of the property as opposed to boarding it up which often results in transients or others entering the home and using it for unscrupulous activities. Chair Grant opposed demolition and wanted to first see if the Faith Based CDC could work with contractors and flip it and turned into affordable housing. Mr. Simon agreed to bring back a cost analysis of rehabilitation verses demolition. Ms. Romelus did not want to purchase the property and felt it is outside the scope of what the CRA is trying to do. It is one home and she questioned whether the CRA needed to spend $166,000 on one home. There are many other places they could spend the funds and purchase two or three lots for $50,000 as was done with the Finkelstein property. Chair Grant was aware the property to the north sold for $155,000. He commented instead of workforce housing, the Affordable Housing Ordinance would be ready in December. He felt this was something the community wanted. He proposed learning what can be done with the property. Ms. Romelus asked if the community was asking for the home to be sold and Chair Grant explained two families will have to find new homes in the community. If the CRA demolished the home or would acquire it vacant, families will have to leave or the CRA can rehab it and make it part of the Cottage District. Ms. Romelus noted the families would still be displaced. Chair Grant favored seeing the options and the CRA monitor the community. Mr. Simon explained staff had already initiated inquiries regarding those properties and the CRA could contemplate creating a new program for multi -family improvement grants for those that do not want to purchase. Motion Mr. Casello moved to table the item to the next meeting. Mr. McCray seconded the motion that unanimously passed. 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 9, 2017 G. Consideration of Dates for Budget Meeting — FY 2017 - 2018 Mr. Simon explained the Board needed to set dates for the budget hearings to review expenses for 2017/2018 fiscal year. In the past, they held budget meetings during regular meetings and as separate meetings. He noted the separate meetings had a lower public attendance than a regular meeting. Staff anticipated presenting budget information in June, July, and August, and breaking down the budget from the project fund in June. Information from the Property Appraiser comes out in May establishing estimated TIF amounts for the following year. At the end of June, the figures are again adjusted and reviewed the by the Property Appraiser and the figures are tweaked until the end of the budget process when it is approved. Staff would review the project fund and projects and discuss them along with the general fund and administrative and Marina items. In August, the Board, with the information that was discussed by the public will make final adjustments at the regular meeting. Mr. Simon explained there are several large projects such as Ocean Breeze East, Sara Sims, and the Town Square. Chair Grant did not want any special meetings and wanted it as a new business item and that the CRA Advisory Board review the budget. Mr. McCray favored seeing the information before the CRA Advisory Board did. It was noted the public can make comments at the Advisory Board meetings as well. There is consensus to proceed as discussed. H. Interim Director Position (tabled until June 2017 — 6 mos. From Dec. 13th meeting) Vice Chair Katz commented he thought Mr. Simon did a great job, especially in the absence of an assistant director and wanted to know the opinions of the other Board members. Mr. McCray agreed he has done a fantastic job, but favored putting his accomplishments and goals on paper. He commented he could wait until the meeting next month before voting on the matter. Mr. Casello thought Mr. Simon caused a complete turnaround of the CRA and it was refreshing. He commented Mr. Simon is progressive and a problem solver. He sat in on a meeting when Mr. Simon was present and he thought having an "Interim Director" weakened the CRA's position. Motion Mr. Casello moved to drop the word "Interim" director and make him the CRA Director. Mr. McCray pointed out the Board gave him a six-month trial period. Attorney Duhy commented the six-month period will be up in June. The Board can direct her to put together a contract for an Executive Director to be considered in June and she would get with the members individually. Chair Grant agreed and requested she prepare legal documents for the June meeting to make the position official for him. Attorney Duhy will send the members the current salary structure and will use the prior contract as a base. Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 9, 2017 Ms. Romelus commented Mr. Simon has done a great job. She had felt the prior director made decisions for the Board. XV. CRA Advisory Board A. CRA Advisory Board Agenda — May 4, 2017 B. Minutes from CRAAB Meeting — April 6, 2017 C. Pending Assignments 1. None D. Reports on Pending Assignments 1. None E. New Assignments from CRA Board Meeting April 12, 2017: 1. Review and Revise Current CRA Special Event Grants 2. Review and Revise Vendor Policy for other CRA's/Non-Profits CRA Board cannot meet and two members have missed three meeting. City policy is to remind them after one more, the board can terminate. Theresa Utterback, Business Development Specialist, explained this issue was sent to the City Clerk who will notify the members after three absences, a fourth results in removal from the Board. Interviews would then be conducted to fill the vacancy. XVI. Future Agenda Items 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. 13tH meeting) C. CareerSource March Career Expo Recap July 11, 2017 XVII. Adjournment Motion There being no further business to discuss, Mr. McCray moved to adjourn. Ms. Romelus seconded the motion that unanimously passed. The meeting was adjourned at 8:14 p.m. n Catherine Cherry Minutes Specialist 17