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Minutes 06-12-17SPECIAL CITY COMMISSION MEETING HELD ON MONDAY JUNE 12, 2017, AT 6:00 P.M. IN COMMISSION CHAMBERS, CITY HALL 100 E. BOYNTON BEACH BOULEVARD, BOYNTON BEACH, FLORIDA PRESENT: Steven B. Grant, Mayor Justin Katz. Vice Mayor Mack McCray, Commissioner Christina Romelus, Commissioner Joe Casello, Commissioner 1. OPENINGS A. Call to Order - Mayor Steven B. Grant Mayor Grant called the meeting to order at 6 p.m. Invocation Mayor Grant gave the invocation Pledge of Allegiance to the Flag Lori LaVerriere, City Manager James Cherof, City Attorney Judith A. Pyle, City Clerk Commissioner McCray led the Pledge of Allegiance to the Flag. Roll Call - Judith A. Pyle,City Clerk, called the roll. A quorum was present. None Agenda Approval: 1. Additions, Deletions, Corrections 2. Adoption Motion Vice Mayor Katz moved to approve the agenda. Commissioner McCray seconded the motion. Vote The motion unanimously passed. Special Meeting Minutes City Commission Boynton Beach, Florida June 12, 2017 2. OTHER A. Staff presentation on update of Town Square Mr. Colin Groff, Assistant City Manager, explained the purpose of the presentation was to review and approve a Resolution to amend the Town Square project. The City has gone. through the Request for Qualification (RFQ) process. The development team has been selected. Phase I of the contract is ready to be approved, and once approved, the City will move into Phase I of the project. Once the Commission reviews and approves the Interlocal Agreement (ILA) with the CRA for $2,100,000 for Phase I services for the Old High School and Town Square, the City can move forward with the project. Mr. Groff pointed out the Commission needed to approve a Resolution to appropriate $4,365,423 to fund Phase I services of which $2,265,423 comes from the unappropriated fund balance. The Commission also needs to review and approve a Resolution authorizing the execution of the Phase I Services Agreement. Once approved, the City Commission will recess; the CRA Board will convene, approve a Resolution, adjourn and the City Commission will reconvene. Mr. Groff continued that the project is a public private partnership designed to redevelop the 16.5 acres of land to be known as Town Square. As part of this project, the City, along with its private partners will construct a new Police and Fire station off campus. The project includes a New City Hall with all the associated parking, repurposing the Old High School and restoring it to its former grandeur; and using it as the City's new Civic Center. The City will also create open space, a park and play areas with associated parking. There .will also be private uses including townhomes, apartments, a hotel and retail space. These areas will add the stimulus for public development. Special Meeting Minutes City Commission Boynton Beach, Florida June 12, 2017 High school -. _,--: -- -_-- .__ -.$10,100,000 ; Parking.. Garage_(900+_ Spaces) - r�._.. $18,000,000 i _. _-_ - 0 - -- — - - ;i.. Development Costs- $ 2,000,000 } (Real Est., Bonds, Lease, _etc) Soft Costs (not incl in D -B _ -- .._=. - :- - _ - --w _ _ $_2,275,000 (Arch, Eng;. Surveying,, Fees, Legal,: Public, outreach) ...... F, Finishes (Furniture, 2,000,000 _ Carrying. Cost during :Const _....-. _... ..__'! — = -.n_. :.._ $ 1,400,000 :Construction Contin9 enn _ _i -� --- 1,175,000 3 Total Public Project Cost $94,500,000 t u0 I ,g Staff used the developer's numbers to create an estimated cost for all of the components to develop the Town Square. The calculated estimate is $94,500,000. and the Town Square is a large project.. The City is going to leverage assets which are already owned and the project can be completed without any property tax increases. An extensive overview was given of how the City is able to construct the Town Square project without raising property taxes. The estimated $94,500,000 is the starting point. Then, the City can begin to subtract from that amount. The City has seven to eight acres of land that can be sold to a private developer. The estimated land sale is $7 million dollars. In the current five- year CIP, the City has designated $3.775 million to repair the existing buildings, But instead of repairing the buildings it would be better to allocate that money for the new buildings. There is $2 million for water and sewer work which was delayed and budgeted. This project will be done in coordination with the Town Square project. The City is looking at a Centralized District Energy Plant. The Chilled Water Plant would provide energy to the new buildings. It is much more efficient to provide energy through chilled water than non -chilled. The City can use the Centralized District Energy Plant to provide water and save money as well. It allows the City to build infrastructure out of utilities proceeds. The City will sell chilled water for a value that will come back and pay for the infrastructure. The next line is $10 million for a large parking garage, about half of which is private parking for the apartments and the condominiums. The City, working with the developers, would set up a Special Meeting Minutes City Commission Boynton Beach, Florida June 12, 2017 Community Development District (CDD) which would pay for the entire parking garage and the High School. In return, the City would pay its portion of the Old High School and the garage to the bond funds. A Community Development District would be created and the private development would pay assessments into the CDD. This would equal about $10 million of cash into the project. The CRA will set aside funding over the next few years to repair the Old High School. The City plans to clean and remove the material inside of the building and install a roof during the initial Phase I process. The City needs $67 million dollars to begin the project. The project can be paid over a 25 -year period; the cost would be at $4.5 million for the City per year. Mr. Groff said $4.5 million a year is easier to process than $94,000,000 and the City has identified four sources of funding to make those payments each year. The first one is the City. The next is the TIF Fund (Tax Increment Financing Fund) which is the difference in taxes for what the 16.5 acres is generating compared, to what it will generate when there is private development. Based on the estimate from the private developer; the City should realize $1.3 million per year. Because this is a priority project for both the CRA and the City, the CRA has project funds to contribute to the project. Initially, the City will rely heavily on the CRA project funds. Mr. Groff explained that with a new project, cash is needed upfront, because revenue is not realized until after some of the projects are completed. The City will not have the revenue in the beginning of the project. The City will be relying on the CRA Project Funds. The last source of funding is the miscellaneous income from the project, such as rental rates, leases, money from the district energy excess revenue. Mr. Groff explained this model was chosen so that construction could be completed without increasing taxes or putting a strain on other projects that the City would like to get done. Mr. Groff listed the project benefits. By selling the land for private development, it will increase the City/CRA tax base. This will also create downtown green spaces which provide multiple venues for activities. Mr. Groff explained that the City will create 1,600 parking spaces. He also said the adaptive reuse of the historic high school is for a public use. The project will become a catalyst for an energetic downtown and a distinct cultural district fulfilling the City's Strategic Plan. He explained that is the benefit and why staff is recommending that the City move forward with Phase I. Moving forward, the City needs to develop building plans that meet the City's vision and needs, develop a master site plan, receive a development order for the site plan' and develop 30% of the building plans which provides details for the contractor to guarantee the price to the City. Once the City gets the guarantee The City must develop the financing structure for the public infrastructure costs. It was noted the City will not issue bonds; the developer would. Once the contract is signed, the City will set dates for public input. At the end of phase one; a package to make a decision whether or not the Commission wants to move the project into construction will be made. The Commission will be given a financial and funding package and the building and the site plans will be approved. 4 Special Meeting Minutes City Commission Boynton Beach, Florida June 12, 2017 Mayor Grant asked about the maximum price for the building, if it would be a normal building and if it would use the maximum density? Mr. Groff responded the maximum guaranteed price will be on the public buildings based on the City's needs including the square footage which will be refined during Phase I. The guaranteed maximum price does not apply to the private development. Development will be in the TOD (Transit Oriented Development) area and there are some density bonuses that will play into the Workforce Housing Ordinance; however, the private side will develop those plans. The key to the project is to complete it as fast as possible including the public infrastructure. . What makes this project work is the private developer. The total cost for Phase 1 is $4,365,423 and of that, $1.5 million is for the Old High School renovations. The City is asking the CRA to set aside $600,000 for the Town Square Phase 1 expenses. The City Commission will review and approve an ILA with the CRA for $2,100,000 to cover the cost for Phase I services for the Old High School and Town Square. The City Commission will review and approve a Resolution to amend the FY16-17 budget to appropriate $4,365,423 to fund Phase I services, of which $2,265,423 is a budget amendment by Resolution from the unappropriated fund balance. The rest of the funding is there as a guarantee of payment if the City chooses not to move forward. The City will be moving forward and those funds will move into the project funds. Mr. Groff announced public input will be in July and August and as an added convenience, the public will be able to make comments online. The presentations and the video will be available on a website set up for the Town Square project. Commissioner Romelus asked if this will be made available on social media. Mr. Groff stated that the City will make available all information regarding the Town Square to the public via social media and all other outlets as well. Mr. Groff reiterated what was needed was for the CRA to approve an agreement to reimburse the City for the Old High School renovation cost in the amount of $2,100,000. Commissioner McCray wanted to clarify what was said regarding when the conceptual plan began and advised the City has been going through this dilemma for years. He asked where the chillers were going to be placed. Mr. Groff stated that the chiller would be built into the site, on either one of the sites or the garage. He stated that this is very conceptual. The team is currently addressing where the chillers could be placed. Commissioner McCray explained his concern with the property on High Ridge Road. The main reason the property was purchased on High Ridge Road was to give the police department a home. 5 Special Meeting Minutes City Commission Boynton Beach, Florida June 12, 2017 3. ANNOUNCEMENTS, COMMUNITY & SPECIAL EVENTS & PRESENTATIONS 4. PUBLIC AUDIENCE INDIVIDUAL SPEAKERS W ILL BE LIMITED TO 3 MINUTE PRESENTATIONS (at the discretion of the Chair, this 3 minute allowance may need to be adjusted depending on the level of business coming before the City Commission) Annette Gray, 3200 S. Congress Avenue, asked if the buildings will be a green and environmental friendly so the City can add a revenue steam of federal funding, for some of these innovation technology and green initiatives. Vice Mayor Katz commented the City is starting the ball rolling, on the funding aspect. The site plans will be ironed out between now and November and those types of amenities will come through either at the direction of the Commission and public input at various events. He stated that tonight the City is not covering specific items regarding the project or site plans, but it is something that should be submitted at public input for consideration. Ms. Gray said that there is an entire funding source that could be identified; as part of the City's income, without specific numbers or specific design. There are federal grants that are out there, that can be conceptual as well as part of this process. Vice Mayor Katz indicated, the board has expressed that they want to move in a greener, cleaner direction. Mayor Grant was looking forward to getting those grants, but right now the City needs to assume that will not happen. The City will move forward with what the City can do. Mike Fitzpatrick, 175 NW 2"d Street, explained his biggest concern is selling the land to the developer. The City has a compact area that is City property. He believes that should remain that way. He asked what is the difference in the cost of the development for a 99 -year lease and selling the land. He said that the life span of a building is 50 years. He said that a 99 - year lease is two cycles. Otherwise, this Commission is like the City Commission who sold Ocean Ridge away.. Mayor Grant felt staff could look into a 99 -year lease, but that would mean that the City would need to issue a bond and increase taxes. Mr. Groff interjected both the green energy grants and looking at leases is part of the detailed financial package that the developers will be submitting to the City. There are multiple options on how to proceed. He would pick the ones that are best for the City. The recommendation will be made, and the Commission will decide among the packages. Commissioner McCray explained the meeting was for public input and to answer questions. The project should be clear to the public. Special Meeting Minutes City Commission Boynton Beach, Florida June 12, 201.7 Commissioner Romelus asked if Mr. Groff could speak about the LEED certified building as well as the green initiative building. Mr. Groff noted this was spelled out in the RFQ. The Commission wants the City buildings to be LEED certified and will look at alternative energy and solar shades as was done at Oceanfront Park. The district energy utility is much cheaper and the carbon footprint is much smaller. There may be grants that were not considered and are available for parts of the entire project developers can bring to the City. Recess City Commission Meeting Motion Commissioner McCray moved to approve to recess. Commissioner Romelus seconded the motion. Vote The motion unanimously passed. The meeting was recessed at 6:33 p.m. Call Boynton Beach CRA Meeting to Order Chair Grant called the meeting to order at 6:33 p.m. Roll Call Deputy City Clerk Nieves called the roll. A quorum was present. Consideration of CRA funding for the services provided under Town Square Project Phase I Services Agreement Mike Simon, Interim Executive Director, explained the items before the Board were to discuss the request by the City for a funding allocation of $2.4 million to be processed through an ILA to contribute to the Town Square redevelopment project. Staff identified in the current fiscal year budget $2.1 million from the following line items: the Town Square project, $185,450; the Old High School,$450,000;$1.7 million made up of the dog park, unused fund balance; the sale of 211 East Ocean building; and the remainder of the Marina Phase I project. The Board took $212,000 from the $1.7 million and allocated some to economic development grants which left a balance of $1.5 in this current fiscal year. The CRA Board was suggesting this be used for the Town Square project in conjunction with the $185,450 and the $450,000. Mr. Simon explained the fiscal impact of the $2,100,000 for FY 2016-2017 and unassigned fund balance for the 2017/2018 which begins October 1. The CRA has projected out the TIF Special Meeting Minutes City Commission Boynton Beach, Florida June 12, 2017 revenue, the expenses for the general fund expense, the Marina and the current TIF agreement. Mr. Simon said these calculations were scheduled out to the year 2030. The current bond debt payment drops off in 2026 and the CRA will begin to see a decrease in debt. This means an increase in revenue, because the TIF is being freed up. The CRA has a request from the City for $2.5 million dollars for this upcoming fiscal year. Then $3.7 million for the next three years, then $2.25 million for the next five years, then $1.5 million for the remainder of the 25 years. The developers have projected a TIF throw off, for the private sector development projects with the Town Square site areas. This is additional revenue of $1.3 million per year that is not allowing for any increases or decreases in property tax value which is money that would go back into paying the debt for the overall project. Mr. McCray explained that earlier there was a discussion regarding Sara Sims Park, and the $600,000 that had been allocated in the budget. He did not see the allocated amount for the Sara Sims Park. Mr. Simon explained that this is just a tab in the workbook and the budget to be voted on. What was on the screen were the various amounts of projects in the tabs. Mr. McCray wanted it on record he wanted to ensure the funds were budgeted for the park. Mr. Casello needed clarification on funds for the Community Caring Center incubator program funds. Mr. Simon responded he had made a note for both projects. Mr. Casello questioned why Mr. McCray had a place holder and he did not. Mr. Simon responded that the $70,000 line item is a much smaller amount; we can find that amount easier than the $600,000. It is of no preference to individual Board members. Chair Grant pointed out the Board was discussing 2016/17 not 2017/2018. Mr. Simon agreed. Ms. Romelus remarked, with all due respect to the Chair, she understood, if the Board will be looking at 2017/2018 and the Board is taking out $2.5 million dollars for 2016/2017, it may impact some of the projects that were being contemplated. She believes it was time to have that discussion and asked about the allocation for this coming fiscal year for the neighborhood police patrol. Mr. Simon responded $275,000 has been requested for this coming fiscal year Ms. Romelus speculated the amount did not include adding new officers. Mr. Simon concurred the budget that was submitted did not include adding additional police officers. Ms. Romelus questioned if the CRA were to take $2.5 million dollars for the Town Square project, if there would be $2.8 million dollars which could fund the Neighborhood Police Officer Program and Sara Sims Park. 0 Special Meeting Minutes City Commission Boynton Beach, Florida June 12, 2017 Mr. Simon explained the Board could discuss it tonight or over the next couple of years. It is a very relevant discussion because the CRA is committing to a 25 -year plan. The fiscal year 2018/20193 2019/2020 and 2020/2021 are significant portions of the CRA project funds. Mr. Simon wanted the CRA Board to consider that a project of this magnitude, the $3.7 million is not just to pay for Town Square, but it is a significant project that demands some upfront funding that is not available to the City. Ms. Romelus requested confirmation the CRA Board is approving $2.5 million and. $3.7 million and every subsequent year. Mr. Simon stressed the CRA Board was only approving $2.1 million to be used for the Phase 1 services and the 30% drawings which are in the Phase I budget. The CRA will be committed as a funding source. Ms. Romelus asked if the decision was only approving the $2.1 million and at a later date, the CRA will have a conversation about the $3.7 million dollars. Mr. Simon replied the City is asking for $2.1 million that will take the City into five or six months' work. The CRA Board will be asked to dedicate $2.5 million dollars toward the Town Square project in next year's budget Mr. Casello asked if the next three years would increase to $3.7 million a year. Mr. Simon explained it would leave the CRA balance of $1.3 million to $1.5 million remaining, based on a modest 3% increase in the TIFF over the next 20'years. Mr. McCray said the CRA is to reimburse the City $2.1 million dollars as well as review and approve the ILA, under the items for consideration. He clarified this is what the $2.1 million dollars was being allocated towards and he thanked Mr. Casello and Ms. Romelus for their input. Vice Chair Katz agreed with the Chair and noted everyone had said their piece. He elected to reserve his statement until the CRA Budget meeting and thought there may be sticker shock looking at the allocations, either from the CRA or the City. Vice Chair Katz commented he was not prepared to raise our millage rate. Motion Mr. Casello moved to approve, Vice Chair Katz seconded motion. Vote The motion unanimously passed. B. CRA BOARD ITEM: Consideration of Interlocal Agreement with the City of Boynton Beach to provide funding for services under the Town Square Project Phase I Services Agreement for an amount not to exceed $2,100,000. (See Attached CRA Agenda Item) Q7 Special Meeting Minutes City Commission Boynton Beach, Florida June 12, 2017 Motion Vice Chair Katz moved to approve. Mr. McCray seconded the motion. Vote The motion unanimously passed. Adjourn Boynton Beach CRA Meeting 6:52 p.m. Motion Ms. Romelus moved to adjourn. Mr. McCray seconded the motion. Vote The motion unanimously passed. The meeting was adjourned at 6:52 p.m. Reconvene the City Commission Meeting Mayor Grant reconvened the meeting at 6:52 p.m. E. PROPOSED RESOLUTION NO. R17-057 - Authorize the Mayor to sign an Interlocal Agreement between the City of Boynton Beach and Boynton Beach Community Redevelopment Agency (CRA) for the CRA funding of the Town Square Redevelopment Project for an amount not to exceed $2,100,000. Motion Commissioner Casello moved to approve. Commissioner Romelus seconded the motion. Vote The motion unanimously passed. F. PROPOSED RESOLUTION NO. R17-058 - Amend the adopted FY 2016-2017 General Fund Budget from $79,401,314 to $83,766,737, an increase of $4,365,423. Motion Commissioner Romelus moved to approve. Commissioner McCray seconded the motion. Vote The motion unanimously passed. 10 Special Meeting Minutes City Commission Boynton Beach, Florida June 12, 2017 G. PROPOSED RESOLUTION NO. R17-059 - Authorize the Mayor to sign the Town Square Redevelopment Phase I Services Agreement with E21- Real Estate Solutions, LLC of Winter Park, FL. Motion Approved subject to City Attorney Approval Vote The motion unanimously passed. 15. ADJOURNMENT Motion Vice Mayor Katz moved to adjourn. Commissioner Casello seconded motion. Vote The motion unanimously passed. The meeting was adjourned at 6:54 p.m. 11 Special Meeting Minutes City Commission Boynton Beach, Florida U'1 Ju9fi/A. Pyle, CMC Cit -Clerk eenester Nieves Deputy City Clerk 12 June 12, 2017 ommissi er - C ristina Romelus Co missioner - Joe Casello CRA FUNDING/USES Tax Increment Revenue 3% incr per yr Marina Revenue Fund Balance Allocation & Rollovers Total Revenue FY16/17 FY17/18 FY18/19. FY19/20 - FY20/21 FY21/22 FY22123 FY23/24. FY24125 FY25/26 FY26/27 FY27128 . FY28129 FY29/30 10,363,156 11,426,469 j 11,769,263 12,122,341 12,486,011 12,860,592 13,246,409 13,643,802 14,053,116 14,474,709 14,908,950 15,356,219 15,816,905 16,291,413 1,000,000 1,000,000' 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 .668607 1'' 1.500-000 1 , - _ _ - . - - _ Debt & Operating Expenses _ 480,264 495,176 -510,535 526,354 542,649 559,432 576,718 396,349 - - DIFA - Ocean One.- Phase Two. - - - 391,417 403,520, 41.5,986 428,827 442,052 455,674 469,705 322,771 Ocean Breeze East .. - Town S uare Project Funding 185,450 - - - - Old High School Stabilization _ 450,000 - - - - - Sara -Sims Park MLK Corridor Redevelopment 1,162,000 Debt Service 2,140,220 ;'` 2,140,955 2,136,465 2,140,852 2,137,822 2,140,528 2,136,830 2,135,817 2,317,425 2,319,093 - Woman's Club- Building Renovations - Operating Expenses 3% incr per yr 2,278,842 2,595,668 2,673,538 2,753,744 2,836,357 2,921,448 3,009,091 3,099,364 3,192,345 3,288,115 3,386,758 3,488,361 3,593,012 3,700,802 Marina 1,000,000. ; 1,000,000 ; 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 .1,000,000 1,000,000 1.,000,000 1,000,000 1,000,001 1,000,002 Sub -Total Debt &Operating Expenses 5,419,062 ' . 1' 5,736,624 5,810,004 5,894,596 5,974178 6,061,976 6,145,921 6,235,181 6,509,770 6607,208 4,386,758 4,488,361 4,593,013 4,700,804 Tax Increment Revenue Funding Agreement (TIRFA) a TIRFA Payments - Contractual Obligations Casa Costa (47.5% 10 Years) 545,000; 572,2501 600,863: 630,906 - - - - - Wal-Mart (25% Years 6-10) 60,000 25,600 j 26,250 27,563 28,941 30,388 - - - - - Seabourn Cove -Phase 1(50% -10 Years) 415,000 435,7501 457,538 480,414 504,435 529,657 556,140 - - - - Seabourn Cove -Phase 11(50% -10 Years) 180,000 189,000 ! 198,450 208,373 218;791 229,731 241,217 253,278 - - preserve (75% Yrs 1-5; 25% Yrs 6-10) 100,000 105,0001 110,250 115,763 40,000 42,000 44,100 46,305 48,620 - - - 500 Ocean (75% Yrs 1.4; 50% Yrs 5-7; 25% Yrs 8-10) - 570,000 618,000 637,000 656,000 450,000 464,000 480,000- . 240,000 254,000 262,000 - - Sub -Total TIRFA Payments 1,300,000 i : I 1,327,000 � 1,963,350 2,081,018 1,429,167 1,487,775 1,291,457 763,583 528,620 240,000 254,000 262,000 Available Project Fund's'. 5,312,770011 6,86 845 _ -4 995,909 5,146,727 6',082,666' 6,310,840 6,809,031 7,645,037 8,0.14,726 81,627,501 11,268,192 11,605,858 12,223,,892, 12,590',608 Projects: 1 -' DIFA - Ocean One - Phase One _ 480,264 495,176 -510,535 526,354 542,649 559,432 576,718 396,349 - - DIFA - Ocean One.- Phase Two. - - - 391,417 403,520, 41.5,986 428,827 442,052 455,674 469,705 322,771 Ocean Breeze East .. - Town S uare Project Funding 185,450 - - - - Old High School Stabilization _ 450,000 - - - - - Sara -Sims Park MLK Corridor Redevelopment 1,162,000 Model Block 450 000. . Boynton Beach Blvd Design/Construction 600,410 E. Boynton Beach Blvd Ext Improvements- Property Acquisition 1,136,607, Cotta e.District - Capital Im rovements - - Special Events .413000 - - - - - - - Woman's Club- Building Renovations Economic Development Grants 784 090 Professional Services .782 200 - - Neighborhood Policing Unit Community Standards Outreach Coordinator .1341-000 - Director of.Econornic DevelopmentSite Work & Demolition. 100 000 Community Worksho slMeetin s = 25,000 1- - - Business Incubator Program - CC -Center -70,000 Community Clean Program 50,000 - - Marketin - Business Assistance 228,590 - - Housing Rehab Program Construction In Progress'(Completed in FY16-17) 886,807 - - - - Sub -Total 7,721,154 1 ' - - 480,264 495,176, 901,952 929,874 958,635 988,259 1,018,770. 852,023. 469,705. 322,771 Total Project Fund FY 16-17 (includes rollover funds) 9,021,154 ; Balance after line item allocations (should be, zero)® _ 6,862,845 4,995,909 5,146,727 5;602 402 581'5,664 5,907,079 6,715,163 7,056;091' 7;639,242 10;249;422 10,453',835 11,754,187 12;267,837 E:\staff-Project Funding June 12_SpecialMtgCRABoard1