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Minutes 08-29-17MINUTES OF THE SPECIAL COMMUNITY REDEVELOPMENT AGENCY BOARD HELD ON TUESDAY, AUGUST 29, 2017, AT 6:30 P.M., CITY HALL IN COMMISSION CHAMBERS, 100 E. BOYNTON BEACH BOULEVARD BOYNTON BEACH, FLORIDA PRESENT: Steven B. Grant, Chair Justin Katz, Vice Chair Joe Casello Mack McCray Christina Romelus Call to Order Chair Grant called the meeting to order at 6:33 p.m. II. Invocation Chair Grant gave the invocation. III. Roll Call A quorum was present IV. Agenda Approval Mike Simon, Executive Director Kathryn Rossmell, Board Counsel A. Additions, Deletions, Corrections to the Agenda Chair Grant wanted the Board to decide on the evaluation process and asked if there were any questions on what was presented. Mr. Casello received confirmation the numeral values were one to four, and one was the best ranking. Whoever had the least amount of votes will win. Vice Chair Katz had a question about the evaluation guidelines and commented the lowest score does not bind everyone's vote to the lowest score. Chair Grant agreed and explained there will be a vote to approve the rankings and if someone wanted discussion, the Board would go forward from there based on the motion. He also wanted a two -minute public comment after all the presentations are made. The public did not view the responses beforehand, and they could make comments. There were no objections. Meeting Minutes Special Community Redevelopment Agency Boynton Beach, Florida August 29, 2017 Motion Mr. McCray moved to approve the agenda unanimously passed. V. Old Business Mr. Casello seconded the motion that A. Discussion and Consideration of the RFP/RFQ for the CRA Owned Property located at 700 N. Seacrest Boulevard, also known as the Ocean Breeze East Site Mike Simon, CRA Executive Director, explained this item was the result of the RFP/RFQ the Board approved on July 11th for the above property. The RFP/RFQ was issued on July 14th with the terms and conditions and had a deadline of August 15th at 3 p.m. The CRA received four proposals from development firms: Turnstone Development Corporation; Roundstone Development LLC; Centennial Management Corporation; and Ocean Breeze Housing Partners LP. Staff analysis was provided to the Board based on the terms of the RFPs and a ranking sheet for the Board to rank the firms based on the submittal was included. Board members could ask questions at any time during the presentation or wait till the end. It was noted the presentations were listed alphabetically. There was brief discussion and consensus reached to hear the presentations in the order they were received which was Turnstone, Roundstone, Centennial and Ocean Breeze East Housing Partners LP, respectively. Staff had requested the proposers not presenting wait in the lobby. The T.V. is not on, but the audio is on. Chair Grant comment the presenters can remain, but if they want to talk they should step outside. He asked all to silence their cell phones. Commissioner McCray wanted the developers to wait outside and commented the audio needs to be off in the Lobby. It was unknown how to turn the lobby audio off. Chair Grant commented they cannot bar a developer from Chambers. TURNSTONE William Schneider explained Turnstone Development Corporation is based out of Chicago and has an office in Ft. Lauderdale and is a non-profit corporation. The proposed development was an all -age family project. As a non-profit, they have more transparency about what is involved in the project and their financials. He has been the executive director for 10 years and the corporation is very stable. Michael Hartman, Development Manager, was based in Florida and Mr. Snyder would be based out of Chicago. They have a small dedicated staff with lots of years of experience. Ronda Butler handles compliance and ensures the firm operates correctly, reacts to and works 2 Meeting Minutes Special Community Redevelopment Agency Boynton Beach, Florida August 29, 2017 with community groups and Councils. They have a woman minority owned architect in Miami. They have 1,600 units. They only handle affordable housing and they are mission driven and not profit driven. They will craft a development to fit the community's needs. Turnstone has never flipped their properties even after the 15 -year tax credit compliance period ended. They refinance the project and stay with the mission. A development drawing was viewed. They had reviewed the City Building Codes, the HOB Plan, and the 2016 Community Development plan and the project conforms to the Plans. The buildings are closer to the street to hide the parking behind the development. The sidewalks will be six feet in conformance with the CRA's Plans and there will be screening and a fence along the back of the project as a private pocket park for the residents. There will be a pool and community center and maybe a further park depending on the mix and how the development turns out. Building C has a 5,000 square foot grocery and 3,000 square foot retail component that will face Seacrest Boulevard. Mr. Casello asked if the plan was flexible and learned it was. Mr. Snyder sought to create an urban setting by having residents closer with pockets of retail on Seacrest Boulevard. Turnstone proposed two different financing structures, one meets with the 9% tax credit lottery having a December 6t" application deadline and second plan, if the CRA wants to start the development immediately, they will use 4% tax credits. Mr. Hartman explained they could file for the 9% tax credits which is a lottery. Turnstone has a slight advantage this year as the geographic RFA workshops were held last week and they are changing how they select applications in large, medium and small counties. It used to be, with large counties, all got one deal and Broward got a second deal. This year, all six counties get one deal and then the high scoring non- profit application that was not otherwise selected, will be selected for the seventh project. With Turnstone as a general partner, Turnstone has two chances for funding. Mr. Hartman proposed getting a construction loan for the non-competitive application from the Palm Beach County Housing Finance Agency for $12 million in tax exempt bond which will allow them to obtain 4% non-competitive credits from the State. The bonds will be short-term bonds and Turnstone will use a HUD 221-D4 loan with two prongs. The first prong will be based on the Notice of Intent which will generate about $8,650,000 in proceeds. The second prong will be based on the CRA investing $350,000 per year into the development that will be amortized over 20 years which yields $4,680,000 of gap financing. The tax credits will provide $9.5 million of financing. This year, Florida Housing increased the total development costs by 3% so the amount of the contribution for the area of local opportunity increased from $551,000 to $567,500 which he noted was used for the 9% tax credit application. In both instances, Turnstone will defer a fair amount of the developer fees, as they are invested long-term because it can be captured in the cash flow over 15 years and they have to make the 3 Meeting Minutes Special Community Redevelopment Agency Boynton Beach, Florida August 29, 2017 project a success over the long term. Turnstone will have $1 million invested in the project if done as the non-competitive and $780,000 if they use the 9%. Turnstone plans, if the Board decides to award the $350,000, they will also file the tax credit application, but they moved back the award deadline to May instead of March. Under the 9% tax credit option, the CRA makes an upfront cash contribution of $567,500, but if successful with 9%, Turnstone will pay the CRA $2 million for the land at closing, so the CRA would get back four times what they put into development. Mr. Hartman explained for the non-competitive, they will purchase the land from the CRA for $10 They have the $567,500 up front contribution, $350,000 for 20 years, which totals $7,567,500, but there will be an offset as they will be a taxpayer and when taking the taxes and subtracting it from the CRA's investment, the net investment is $3,289,000. The gross investment decreases to a little over 40% of net investment. The property has an estimated useful life of 20 years, so even after that time period ends, they will still be taxpayers and after 50 years, Turnstone will have invested $5 million more than what the CRA invested in the property. Chair Grant explained in Florida, non -profits generally do not pay taxes, and asked if they would sign something to say they will pay taxes. Mr. Schneider responded they would and it was changed slightly on the State level. They constructed 105 units at 615 N. Andrews and the State repealed that portion if they were a general partner as they have to have 100% of the deal, but since they sell 99% to tax credit investors, even though they are a 100% general partner, the State does not recognize that. He explained they do not have to sign anything, but would as a guarantee. The Board viewed images of buildings. Mr. Schneider explained they like to construct eye catching buildings and attractive urban land and streetscapes. They construct transit oriented, community gateway and sustainable building designs. They use LEED and Enterprise Energy Star and Florida Green Building Coalition as they are certified. The development would have106 units at 60% of the area median income with a mix of two, three and four bedroom units with livable living sizes. There would be 203 interior parking spaces. They firm engages in local hiring, project participation and is market driven, utilizing Chambers of Commerce and the Rotary. They deal with Community Development Block Grant and HOME funds. They are also a community housing development organization and are grass roots. The development would include a furnished community room, business and fitness center and pool. Chair Grant asked if the parking would be inclusive or exclusive and learned it is only for residents of the development. They have allowed some local Chambers of Commerce to use the Community Room based on a sign in/sign out, proof of insurance basis. The first floor building plans were viewed. He pointed out the building on the left would be the grocery, retail and community activity along Seacrest Boulevard. There will be on -street parking and the entrance will be just north of the grocery store. The second 4 Meeting Minutes Special Community Redevelopment Agency Boynton Beach, Florida August 29, 2017 floor plan was viewed and had larger unit sizes. The one -bedroom unit is 817 square feet and rents for $729; two bedrooms are 1,038 square feet renting for $875; the three bedrooms are approximately 1,214 square feet renting for $1,003; and the four bedroom units have 1,352 square feet renting for $1,113. The floor plans were viewed. Mr. Schneider reviewed highlights for sustainability and advised they use Florida Green Building Codes regarding building materials, construction practices, disaster mitigation and land use. The LEED building standard is about buying American lumber and steel, and points are given from using recycled materials in the buildings and LED lighting to get a better project developed. All units and common spaces will have Energy Star appliances and low flow water and energy efficient lighting which helps keep costs lower for the developer who pays for the common costs, but it helps the tenants with lower utility bills. Turnstone uses a higher efficiency mechanical system with reflective roofs. The team has extensive experience with sustainability. The Wisdom Village Crossing project, a 9% tax credit development, was awarded a Florida Green Building Coalition Certificate. It is a 105 unit, nine -story development in Florida. They also constructed 144 scattered sites in 2009 in Florida for a lower income homeownership project. They have a healthy balance sheet to manage the developments as a 100% general partner. Turnstone's community commitment was a commitment for local hiring and promoting local businesses. Mr. McCray asked why local hiring was only 30% and learned Turnstone quantifies local hiring from the Section 3 definition of HUD. The general contractor is Grycon Construction and they use 30% of the locals from the neighborhood and churches. He noted everyone is from Florida, but when working in Ft. Lauderdale, people from Miami do not count as local. Mr. Schneider would target the same amount here and have to find the hiring groups. The entire Turnstone Board is African-American to obtain the local hiring preference. They start with Rotaries and Chambers of Commerce and find out who the resident groups are in the area and learn about local churches. They then have working sessions as they go through the plans. Chair Grant asked how Turnstone could help the community after the development is built. Mr. Hartman pointed out that was why the grocery and retail space was included. Space will be there for a local group to move their business into the building. The funds from those businesses will be used on debt service and help subsidize rents. Mr. Casello asked if Turnstone was in partnership with anyone else and learned they were not and from a financial standpoint, they do not need to bring in a future partner. They have brought in other local not-for-profit partners, but they were not looking. They could also partner with religious organizations. Motion Vice Chair Katz moved to allow Board members to ask questions. Ms. Romelus and Mr. McCray seconded the motion that passed 4-1 (Chair Grant dissenting.) 61 Meeting Minutes Special Community Redevelopment Agency Boynton Beach, Florida August 29, 2017 Vice Chair Katz asked if Mr. Hartman had worked with another proposer and learned he had in the past. Mr. Hartman was working with Roundstone for the last two years and prior to that, he had worked for Turnstone to develop the 615 N. Andrew Avenue project. When they started construction, he left and was rehired by Roundstone as a Development Coordinator. Since then, Turnstone developed more properties and has a stronger cash flow position. They wanted to expand their position and they approached him to be their Development Manager in May. He gave notice to Roundstone on June 15th, left on June 30th, and started with Turnstone July 1St. He is entirely affiliated with Turnstone. Commissioner McCray noted Turnstone's Board is all minorities and asked if anyone can apply. Mr. Schneider explained they have a seven member board but there are two vacancies. They used to be affiliated with the Housing Authority as an "instrumentality". When they split, two members stayed behind. The two that left were Caucasion and Hispanic women. Ms. Romelus asked about the four-bedroom apartment and if it would be better to go to single family. Mr. Hartman explained the four-bedroom is cheaper than single family, but because of common walls and common foundations it is cheaper to do four - bedrooms. He noted they are not a Section 8 development that has to accept the certificate, once a child turns five, they cannot sleep in the same bedroom with a different sex sibling, nor can boys sleep in the parent's bedroom. They have to have more bedrooms. There is a small number of four bedroom units and he found the four- bedroom units lease up faster cause there is nothing available for anyone with more than two children. Turnstone did not build four-bedroom units in Ft. Lauderdale because it was a high rise and cost would have been prohibitive, but it was fine with a garden style building. She asked if it would be better with more than two and three bedroom units instead of four bedroom units. Mr. Hartman explained they would conduct a market study, and has found there is always a need because they are very hard to find. They have the opportunity with the development to adjust the number of units. Vice Chair Katz asked if four bedrooms are rented by families or roommates and learned it is usually families. Mr. Casello asked who manages the properties and learned Turnstone uses Royal American Management to manage the property and they manage over 14,00 affordable units. Chair Grant asked if they were interested in a rent -to -own arrangement and learned once structured, they are left as rentals; however, they did build one development that converted to homeownership. They have never sold any of their developments. ROUNDSTONE Bob Colvard, explained Roundstone was partnering with St. John Missionary Baptist Church. The team was local and consisted of Bradley Miller, Land Planner; Cross Architect, from Dallas was retained since they designed the Delray Beach Development; R Meeting Minutes Special Community Redevelopment Agency Boynton Beach, Florida August 29, 2017 Bob Davenport, Mechanical Engineer from Jupiter; Jeff Tromputer, the Civil Engineer was from West Palm Beach, Larry Zaybeck, Project Manager, Legal Counsel, Broad and Cascal from Boca Raton. They were partnering with the Church led by Pastor Davis and Deacon Willie Gibson, Vice Chairman and Deacon Guarn Sims, Mark Karageorge, a Church Member and Reverend Woodrow Hay. Mr. Casello noted the proposal included an informal partnership. Mr. Colvard explained they will partner with them in the final analysis to get it done. Roundstone will construct the development, and when operational, they will help run the development and at some point they will take it over. Mr. McCray explained he is the clerk at the Church, but he has no vested interest in the project and he has not met with anyone. Roundstone Development is owned by Clifton Phillips and they have over 2,000 units in Florida, Texas, Arkansas, Mississippi and others. They were with the Delray Beach project. Mr. Colvard explained one reason why Roundstone was presenting was because of the partnership they had with the Housing Authority in Delray Beach. There were some issues with the contractor and they persevered and saw the development through. The local community reached out to them and asked what they could do for the community. Roundstone met with them many times to determine their desires and needs. Some developers promise to meet but Roundstone development already did. Many developers promise to have community meetings, but Roundstone already did. If selected, they will hit the ground running with all in place. Photos of the Delray Beach project were viewed. Mr. Colvard reviewed their Pinellas Park development consisting of 120 units on five acres. Examples of amenities included onsite laundry, a business, fitness and community center. The Clubhouse for the Boynton Beach development will have a Life Center and Roundstone is expanding the normal size of the community clubhouse to make room for extra community activities for health screenings, job fairs, and other important activities. Mr. McCray asked if the community wants to have a meeting the space was available and learned it was at no charge. Mr. Colvard would make the presentation of the community activities on behalf of the church as the Church had not submitted any financial disclosures. Chair Grant understood Royal American would manage the development and that is who the CRA would deal with for the next wo years. Vice Chair Katz did not object to any partnership regarding who would run the property, but it was one thing to speak to the entity like the prior presentation and another to have the property management firm speak as an entity. It seemed out of place without the disclosures. Mr. Colvard advised they would use green building features as it is part of the Florida Housing requirements and it makes economic sense to construct sustainable green buildings. The site plan showed 100 units around retail and the Life Center and it was noted the retail space was created according to the CRA's specifications. They had originally designed a larger space, so it was pared down per the CRA. The elevation 7 Meeting Minutes Special Community Redevelopment Agency Boynton Beach, Florida August 29, 2017 was viewed as was the timelines. Roundstone will either submit for the 4% tax credits in October, or the 9% in December. The local participation was already done. Roundstone split bids so local businesses, and smaller entities can become involved. He emphasized there were issues with the contractor with the Delray project, but they stuck with it, and completed the development. The elderly portion was almost done. An economic analysis done for the site reflected 220 construction jobs will be created. It will have a $30 million direct impact, monies for professional and general contracting work will be spent within 20 miles of the site. In the post construction phase there will be 250 new residents, plus $2 million in local spending, 20 new permanent new jobs, $700,000 in annual salaries and spending. The economic impact if using 4% tax credits, Roundstone will pay $800,000 for the land. If using 9% credits, they will pay the appraised cost up to $3 million. It will be a new residential hub with 100 new utility customers. The Life Center will be a one stop shop for people to go to for educational, health, family, social, community services components and they have partnerships set up to provide those services in the community. Guarn Sims, 3021 S. Seacrest Boulevard, St. John Missionary Baptist Church as a community partner noted the Church realized the project had to be more than just providing affordable housing. Studies from the Children's Services Council revealed the HOB in District II needs more services than other areas. The goal was to provide comprehensive services and secure partnerships. He agreed with the One Stop Family Life Center. There is an educational component, health services, social services, family social and community service component. The educational component would be achieved through a partnership with the School District of Palm Beach County and adult community education, and provide ESOL, GED and citizenship classes. South Tech will provide continuous training opportunities for residents in District II and in the City. They will continue to partner with CareerSource to continually offer career referrals and job placement. Health services will be available through a partnership with the Boynton Beach Faith Based Community Development Corporation to offer awareness programs and they just secured a partnership with Genesis Community Health for health services in the Family Life Center. Social services will be addressed through Pathways 2 Prosperity. The family social component will offer financial literacy, family self- sufficiency programs, First Time Homebuyer classes and have a community service component. In the Church's last letter of intent, they included a community grocery component and had already secured a partnership with a grocer, but the change from a senior community to a mixed community resulted in the loss of grant opportunities. They are currently working with two merchants who are interested in leasing the 3,500 square feet of space. He noted what makes this proposal stand out from the others is they want to maintain the integrity of the HOB Plan and be attentive to the area's needs, particularly in District II, they want comprehensive services before, during and long Meeting Minutes Special Community Redevelopment Agency Boynton Beach, Florida August 29, 2017 after, and that was why the partnership was so important because they will deliver those services. Mr. Casello asked if affordable housing was not just for residents of District II and learned anyone can apply if they meet the background checks. Mr. Colvard explained just like in Delray Beach, Roundstone uses their management company, Sunchase Management Company, during the lease up period, and after that, the housing authority took over which would likely occur with the project. It is unusual to change a successful management team. In Delray, the Housing Authority owns the family phase and later will take over the elderly portion as well. Mr. McCray asked about security and learned the development will be fenced with gate controls. A plaza with a fountain and landscaping will be installed which will be open to the public to get to the retail, but the residential units are gated. Mr. McCray thanked them for putting comments from residents as who can better explain what is needed more than those who live there. He liked Roundstone met with the community. Delray is successful because they worked with the community and he thanks them for doing a good job in Delray. Chair Grant inquired about the estimated cost and learned it would be the same rent schedule via Florida housing. To obtain the tax credits there is a limit to what a tenant can be charged. He asked why 44 one bedroom units in a family community. Mr. Colvard explained the community originally wanted a senior community. Seniors can live in a family development. Mr. Casello asked what the developer fee would be and learned it would be around $2 million. He asked how long do you stay involved with the project before it is turned over to the church and learned the development has to stabilize and run smoothly for no less than 90 days after certificate of occupancy. Mr. Colvard explained a lot of the fee will go to the church. Vice Chair Katz explained there is no other proposal besides the tax credits. He asked how the firm would move forward to develop the project without the credits. The premise of the RFP was to try to obtain the tax credits and if the credits failed, the CRA would allocate and subsidize the development to build it. Mr. Colvard explained when they appeared before the Board several months ago, their proposal did not use the tax credits at all and the Board did not want to pursue the matter so they returned to present the 4% and 9% tax credit. He commented the 9% is different now due to the super contribution and it improved the odds of being funded. Vice Chair Katz asked what would occur if the tax credits were not obtained and noted other proposals included that information. He also noted the Church is not an official partner, but the facility will be turned over after the property is developed and stabilized. The Board does not know anything about what happens if the Board awarded them the proposal should the tax credits not be achieved and he was concerned that a partnership is undocumented. He did not know how the Board could vote for an option without the tax credits or vote for a project that will be turned over to an entity that did not make the proper financial disclosures. Meeting Minutes Special Community Redevelopment Agency Boynton Beach, Florida August 29, 2017 Mr. Colvard responded they were not asking for anything from the CRA other than the local contribution. They will buy the land. Vice Chair Katz commented there is no plan beyond the tax credits. The point of the RFP was to find a developer that could put together a proposal that could put together one last chance at the lottery. The RFP was crafted around the tax credits and if no tax credits, how they would proceed. Mr. Colvard explained that proposal was the original proposal that was rejected. Vice Chair Katz noted the original proposal came in $3 to $5 million higher than the current proposals. He thought he should not have submitted the original proposal, but could have crafted a more reasonable proposal that was in line with the RFP. Chair Grant explained the people across the street cannot use the pool. Mr. Colvard explained there is an insurance issue regarding the pool and the project has no chance at homeownership. Mr. Colvard explained it could be converted to homeownership after the compliance period is over which is 50 years. There is a land use restriction for 50 years filed with the State. There was discussion the language included in the RFP was clear. Mr. McCray commented some presenters tried the lottery twice and failed. Ms. Romelus explained this was the opportunity to show everything about the Church and they did not. Mr. Colvard explained the only way to prevent the project from being exorbitant was to couple it with the 4% and 221-d4 program, was building it through the SAIL loan and combining it. It was suggested that option should have been included in the proposal. Mr. Simon asked about the management turn over regarding the Delray Beach project and who the management company would be and learned Sunchase America managed the project. Delray Beach hired the same management company as Roundstone uses. The City would deal with management company long term. The advantage with this project is the City would deal with Sunchase long term, but they would also have someone who lives in the community they can speak with as well. Chair Grant understood the entity that hires the management company is them and afterwards would be the Church. The language could be put into a contract if awarded. Mr. Colvard emphasized the continuity of the management would remain the same. Mr. McCray asked if everything was submitted. Mr. Simon explained none of the four proposers were penalized because of a missing piece of information. What took place is the Board is being informed that an owner of the property is an entity that has not been identified and the premise of the proposal does not describe that taking place. It is an abnormality the proposal did not identify the entity as a future owner, what their role would be and their financials or their credit report disclosures. There was no information about the role other than the second paragraph of the Statement of Qualifications which references the partnership will provide wealth and effort and at the end, if the owner of the future apartment development is a stakeholder in the community. There were no other references in the response that addresses this issue. Mr. McCray again asked in regard to all of the responses, if everything was disclosed. Mr. Simon confirmed nothing was missing. 10 Meeting Minutes Special Community Redevelopment Agency Boynton Beach, Florida August 29, 2017 CENTENNIAL MANAGEMENT Lewis Swezy, President, Centennial Management, explained they are a South Florida based company. They developed more than 17 tax credit projects since 1988. They do not sell any of their communities. They are an integrated company that owns their own construction company and are property managers. Centennial holds job fairs to hire people and train them within the community. As general contractors, they maintain control over their sub -contractors. Paul Milton, Centennial Management, explained the firm has superior experience in development and obtaining tax credits and other processes. They own and manage over 3,000 residential units with most being tax credit and affordable housing as well as about 900,000 square feet of commercial and retail space. Mr. Milton explained they have four financing options about financing. The first option was the same scenario as when they had previously presented for this project. The first option was to buy the land outright for $800,000 and go straight to closing. They would request the local government contribution and a few $100,000 for utility waivers. In reality, the CRA would not be out any money. Centennial would apply for the 9%, 4% and SAIL credits and if not successful, the CRA could buy back the land or use option 4 which would be financed through the CRA. Option two was to enter into a contract for either the 9% tax credits or SAIL funding through the Florida Housing Finance Corporation. If they obtained the 9%, they would buy the land for $1.4 million and only ask for the local government contribution of $567,000 and the utility fee credit. If the obtained the SAIL funds, which was not as comprehensive as the 9% credits, Centennial would pay $800,000 for the land on top of the local government contribution and utility fees, none of which rely on TIF funds. Option four was the only option that does not involve any competition or lottery. Centennial would buy the land for $1,000 and ask the local government contribution, which actually would not be needed and would seek a $350,000 in TIF for 15 years. The programs are all flexible. If the tax credits are awarded, Centennial can build 123 units. Mr. Swezy has been doing this for over 40 years, and has a portfolio of affordable and market housing, mixed-use, mixed -income, commercial, retail, industrial and landholdings. Most of it is affordable housing. Centennial handles all steps of the process in perpetuity. They have also constructed developments by purchasing land from the City and received partial funding and built the development to meet the City's goals such as Chaves Lake Apartments and Miami Stadium Apartments. They also undertook a rehab in Davie. All their developments are in South Florida and were all completed on time. None have ever been sold or in default and they have experience in Community Outreach in accordance with Section 3. 11 Meeting Minutes Special Community Redevelopment Agency Boynton Beach, Florida August 29, 2017 They currently have three developments in process, one of which is in Boynton Estates which was funded with bonds. Images of their other properties were viewed. Andrew Rourke, Forum Architects and Interior Design, explained the firm was established in 1986 and has designed three developments for Centennial. They specialize in multi -family market rate and affordable housing. The site plan was viewed. All the buildings are on perimeter streets, consistent with contemporary urban design principals, CEPTD and complying with all of the other requirements of the HOB Plan. There is a single entrance south west of the site off Seacrest which is good for security. The property will be fenced and will work with the community and CRA to determine if it would be gated. The building on Seacest and the western corner of the building along 7t" includes 1 2,200 square feet of retail which is all flexible. The development will have 123 units based on the maximum density plan and will have 216 parking spaces. There will also be a community room. He advised the retail and community room will be to the northwest intersection of the site off a small plaza also drawing north towards Sara Sims Park. Mr. McCray asked what will be on Seacrest,and learned there will be a 6 to 8 feet sidewalk, streetscape consistent with the regulations and enhanced landscaping along the front. The entry locations for retail have not been determined but will be on Seacrest, and on -street parking will be on Seacrest, 7t" and 1St which makes it easy for retail patrons to use and have easy access where parking on the interior of the project is reserved for residents and their guests. The key was to have the community room and the retail on the corner, but the plan is flexible. The community room is central so visitors can have easy access. The project will include a pool. Chair Grant asked if there has been a traffic study as it appeared one cannot make a left hand turn and learned no study was yet done. Mr. Rourke advised they will work with the traffic engineers. Images of the building elevation were viewed. Mr. Rourke indicated they will work the community and CRA to execute their highest vision and there are multiple style opportunities. Amenities will include a pool, community room with computers and other features pending community input, a fitness center, a tot lot, a common laundry area in addition to laundry connections within each unit. All units have balconies or patios, granite, counters, tile flooring, walk-in closets and window treatments. The units will have energy efficient plumbing fixtures, air conditioning equipment. Vice Chair Katz asked if they could create something similar to Turnstone regarding the retail on the first floor. Mr. Rourke explained the plan was the maximum density unit plan. Less units could increase the commercial footprint. They want community input. It would not be a problem. Sophia Nelson, Merchant Strategy, explained they were working on the Town Square project and one goal is to hire locally from the subcontractor standpoint and to hire locally from the labor standpoint. They held a successful job fair which they will continue 12 Meeting Minutes Special Community Redevelopment Agency Boynton Beach, Florida August 29, 2017 with Centennial and about 197 people turned out. They held three community input meetings on August 10tH 17th and the 24th to discuss open space, architectural design for the Town Square and the playground. Chair Grant disclosed he met with the Merchant Strategy, but they did not discuss this project. They are currently on the ground conducting outreach. The development is the ultimate live/work/play situation. They will be a proactive partner with stakeholder's with churches, the Chamber of Commerce and any other stakeholders. Input meetings are important. Having the community tell them what they want is the most important part of the project. They will have focus groups and activities so the community can take ownership. Keturah Joseph, Boynton Beach Faith Based Community Development Corporation, (CDC) explained they have been in the community since 1999 and all they have done is affordable. The Corporation was put together by local residents to address affordable housing in Boynton Beach and that is what they focused on. They provide homebuyer education, credit counselling, financial literacy, financial education and other educational programs. They will be a part of and stay involved in community engagement to ensure that all Centennial is proposing to do will be done. The CDC will be the eyes and ears of the community and will play a significant role in the educational component and will handle the family support coordination. They proposed to hold a 1St time homebuyer counselling education class for the tenants of the community Anyone interested in homeownership will be mentored by the CDC so all interested can be transitioned to homeownership. They will coordinate the community activities. Ms. Romelus noted the CDC was mentioned by another group and learned they were. They would do the same function if another entity was awarded the project. Ms. Joseph explained the CDC has assisted over 200 people to be first time homebuyers and counselled over 2,000 residents. The majority of homebuyers are within city limits, but some were outside. They also participated in the Ocean Breeze as co -developer with Ocean Breeze West and just finished homes on NW 10th, and MILK Jr. Boulevard. Mr. McCray asked of the 200 people that achieved home ownership still live there. She noted the majority are still homeowners and she would provide him with the exact number. Ms. Joseph explained both the CDC and Habitat for Humanity constructed the homes in Ocean Breeze West. Ms. Romelus asked if the same opportunity was available if the CDC would participate. Mr. Swezy explained if they are awarded the project, they would hire her as a consultant as a team member. It would be a long-term written contract. Mr. McCray asked who paid her salary and learned the non-profit CDC paid her salary. Mr. Casello asked about onsite management and learned there is always a manager, leasing staff and maintenance staff at every property and they are paid a competitive 13 Meeting Minutes Special Community Redevelopment Agency Boynton Beach, Florida August 29, 2017 wage. It was also confirmed that at no time would the CDC take ownership or a percentage or have a stake in the building. NUROCK DEVELOPMENT Alan Sneir, representing NuRock Development, explained NuRock started in Georgia and has offices in Boynton Beach, Florida and now in Texas. They developed over 9,600 units and have been in business for almost 30 years. NuRock developed and owns over 9,600 rental units. Currently, they have two developments one of which is a 9% tax credit project in Haverhill. The second development is in Pompano Beach. He commented they have other developments in Florida. They are the 12th largest affordable housing developer in the U.S. (Mr. McCray left the dais at 8:35 p.m.) NuRock develops family and senior properties and also handle market rate and mixed income housing. He advised the majority of their portfolio is in affordable rental housing. Mr. Sneir was on the committee that created the Tax Credit program in 1986. They develop, build and manage and are a service provider. The layout for Ocean Breeze reflected 100 units of one, two and three bedrooms, for families earning 30% of area median income (AMI) to 60 % of the AMI. (Commissioner McCray returned at 8:37 p.m.) The square footage was viewed which ranged from 800 square feet for the one bedroom one bath, 950 square feet for the two bedroom two bath and 1050 square feet for the three bedroom two bath. They have a special program called "Break Out" which is study and homeowner help, a recreation center, computer, home theater, library and others. This is something most affordable housing developers have to do. They would only apply for SAIL funds. The only contribution they would ask from the CRA is $1 million, not TIF funds. Vice Chair Katz explained the Board had set a cap of $567,000. Mr. Sneir was unaware and explained they looked to the RFP. Mr. Casello asked about the $1 million forgivable loan and learned if they achieve the economic benefits they said they would in their agreement with the CRA, they would adhere with whatever the terms are. Whatever the CRA establishes as their repayment, recognizing the $1 million must be a soft second instead of a hard mortgage and it gets paid on the back end. If successful with obtaining SAIL funds, the developer is automatically awarded tax credits. It is critical they create communities and a lifestyle. The development has to stay in the community, architecturally and environmentally for 50 years. Mr. Sneir explained they will have a community garden and a small solar component which will help the residents. 14 Meeting Minutes Special Community Redevelopment Agency Boynton Beach, Florida August 29, 2017 Mr. McCray explained the three previous presenters did not call the development a project. Mr. Casello asked about management. Mr. Sneir responded they manage their own properties. They have over 9,000 units. Images of their other developments in Crystal Lake, Pompano Beach, Heritage at Pompano Station, Spring Hill Florida, and residences at Ocean Breeze in Boynton Beach. The development will also include a small business incubator to help the residents and community learn business techniques. They will explore other commercial activities and will not put something there just to put something there. Chair Grant asked if the community center was for the residents and learned it was, but the incubator will be for the community. The development was three stories but would not have an elevator. Vice Chair Katz asked if there was an alternative plan to the 4% tax credits and asked why a portion of the response did not request CRA Financial Assistance. Mr. Sneir explained the tax credits would allow the developer to syndicate $9 million of the $22 million needed to construct the development. The $9 million does not come with a repayment plan. It is only possible by NuRock achieving certain things. There is no repayment of the funds unless the developer goes out of compliance. Mr. McCray explained there was previously two community gardens and they failed. It was noted this was Mr. Sneirs fourth attempt at the project. Mr. McCray asked what he was doing about the project proposed on MLK Jr. Boulevard and advised they were not going forward because they cannot get the property at the right price as they are asking for more money each year and the land costs are prohibited. Mr. McCray explained each time he comes before the Board he represents District Il. Each time District II gets excited and this had failed. He found it hard to fathom he would want to appear before the Board and take a chance on obtaining the development. Mr. Sneir thanked the Board for their time. Chair Grant opened public comment. Rosemarie, a new member of St John Missionary Baptist Church, explained she joined the Church because of their commitment reaching out to the community. They have a reach program for teens and preteens, grief programs, financial programs. She is a human resource professional and she provided a plan for job placement and job preparedness. She understood there are issues about the numbers, but numbers can be djusted. She thought the risk of not having community support cannot be compromised. The Church started the project to support the community. Greg Murphy, 1400 NW 13th Street, was concerned the will of the community would be taken for granted. Roundstone's proposal is community based and builds wealth and quality in the community. When the CRA rejected their prior Letter of Intent, it included the same option, they are now penalized for. He had heard from the meeting, all development teams must pursue the tax credit for 12 months. If the development team 15 Meeting Minutes Special Community Redevelopment Agency Boynton Beach, Florida August 29, 2017 is unsuccessful, the CRA would work with that developer to assist them in a financing option. Roundstone and the Church followed the guideline and if unsuccessful then they can present an alternate proposal. They were the only proposal to provide a robust service to the community. He thought that was important to be considered. Sandra Toliver and Diane Lester, representing New Disciple Worship Center, had a letter on behalf of Dr. Tommy Brown, Pastor and Pastor Darlene Brown which she read: "On behalf of Dr. Tommy Brown and Pastor Darlene Brown, Pastors of New Disciple Worship Center and its members, we commend SJMBC for desiring to build Affordable Housing on the property known as Ocean Breeze East. St. John Missionary Baptist Church has been a pillar in this community for more than 100 years and has been community minded and we are grateful to God for that. They are providing needs to our community through services such as food bank, a charter school, health fairs, and back to school drives for the residents and their children. They are trusting that the partnership with the CBA, CRA, and St. John Missionary Baptist Church, that Ocean Breeze East, will be the community trend that other cities can use to establish affordable housing for their residents. Therefore regarding Ocean Breeze East, we support and recommended St. John Missionary Baptist Church Inc., with the intentions of them fulfilling all the necessary obligations and requirements that are required by the CBA contract to help make this community a stronger community for the residents of the Heart of Boynton." Bernard Wright, CEO and Founder of Bernard Wright Ministries, Real Talk Radio and the Robert E. Wells Foundation, explained there is a Commissioner from District II and other members should support him as he was supporting the interest of the people. He supported the project and Boynton Beach has been dead and the City is living in a prophetic spirit to be a better Boynton. He noted none of the developers spoke with him and he has roots in the City. He requested the Board do the right thing. No one else coming forward, public comment was closed. Vice Chair Katz agreed with Ms. Romelus' sentiments of disappointment. He cannot extend the same forgiveness to multi-million dollar developers that came to the meeting unprepared. They applied for tax credits for years and the Letter of Intent was received from Roundstone. It was time to act, but the letter of intent was exhorbitant. If someone does not follow the rules, there is a penalty. He rejected anyone who came forward that did not understand the rules as it was explained. He was confused and saddened when the information was presented from the RFP. He wanted to vote for the Church's proposal, but it had to be competitive and in accordance with the Board's expectations and they were not. The same was true for NuRock although they were not present when it was explained. Centennial and Turnstone presented viable options beyond the tax credits. He was saddened by the fact they had four proposals but two did not follow the regulations. Centennial and Turnstone will be ranked higher because they followed the RFP. The Board can get the three major projects in the HOB done in the next few 16 Meeting Minutes Special Community Redevelopment Agency Boynton Beach, Florida August 29, 2017 years. The savings from not accepting the original Letter of Intent of $3 to $5 million can help fund MILK Jr. Boulevard. Sara Sims would be funded for a couple of million. Mr. McCray commented Sara Sims was not $2 million. He appreciated the Church stepping up to the plate first. No one did anything until the Church became interested. They live there and represent the people. He advised he would vote in favor of Roundstone. Chair Grant walked by the property and the community wants it to better the community. Just having affordable housing does not improve the community. There are aspects from the other developers that show they are trying to improve the community and based on insurance, the pool and other facilities are not going to be available to non- residents, but they can be flexible and change it. They also want to include retail. Roundstone made sure the community aspect was loud and clear. The Florida Housing Finance Corporation has a lot of programs and he liked Centennial working with the CDC. The CRA plans to have single-family homes in the HOB and can use that to get homeownership from the people who are living in affordable homes. The community does not want people living in affordable housing for perpetuity. There is a safety aspect with having a gated community and two entrances makes a difference. The Board has to determine if they want a further discussion with them similar to the Town Square to negotiate a better deal and if they do not like it, go to the second ranked firm. He commented the proposal can go before the CRA Advisory Board and have a final negotiation at the September meeting. He thanked the developers for their presentations. Ms. Romelus reiterated her disappointment regarding the Church. She did not understand where the confusion occurred. She wanted to know in advance of what would come and wanted complete transparency. She was extremely disappointed and she could not vote in good conscious for the Church as there are other groups that showed a commitment to the community that are reaching out and doing things other entities are doing. Mr. Casello thanked all the developers and explained, as CRA Board members, they have to get the biggest bang for the buck and provide for the community what they wanted. Some developers did so and others did not. He stepped back from having informal partners. He understood Mr. McCray likes the Church, but he did not think entitlement should go along with this. Affordable housing is the number one priority and some presenters presented viable projects and can serve the community. Mr. McCray explained although he is the clerk at the Church, it has nothing to do with his vote. He represents District II and he is voting for the betterment of the community and has lived there for 64 years and knows what makes it move. Mr. Casello disagreed stating he lives in District II, but he represents the entire City. 17 Meeting Minutes Special Community Redevelopment Agency Boynton Beach, Florida August 29, 2017 Attorney Rossmell requested a motion to approve the process to evaluate the proposal. She also asked if the Board would rely on the process to award the proposal. Chair Grant commented the members would rank the proposers, take a recess and Attorney Rossmell will tally the vote and the Board would then move forward with the ranking system and then decide if it will go before the CRA Advisory Board and discuss what will be next to get the best product Motion Vice Chair Katz moved to approve evaluation ranking form given to the Board by CRA staff with one being the highest and the four being the lowest, similar to a golf score with the lowest ranked firm as the winner with the caveat that the members reserve the right that once the ranking is done, members can express their personal views if they disagree by way of an independent vote. Motion Vice Chair Katz moved to rank the development. The motion was duly seconded and unanimously passed. Chair Grant declared a short recess at 9:22 p.m. and reconvened the meeting at 9:27 p.m. Attorney Rossmell read the results of the rankings as follows: • Ocean Breeze Housing Partners LP - 20 points • Turnstone - 12 points • Roundstone - 11 points • Centennial Management Corporation - 7 points Motion Mr. Casello moved to accept the rankings. Vice Chair Katz seconded the motion. There were no objections noted. Motion Mr. Casello moved to approve. Ms. Romelus seconded the motion that passed 4-1, (Mr. McCray dissenting.) Vice Chair Katz wanted the Centennial proposal reviewed by the CRA Advisory Board. It was noted Centennial provided four options, the 9%, 4%, the $800,000 to purchase that and a fourth option and Centennial will speak with them and get a timeline and approve negotiations. 18 Meeting Minutes Special Community Redevelopment Agency Boynton Beach, Florida August 29, 2017 It was noted the vote was to accept the rankings and start negotiations with Centennial and go before the CRA Advisory Board and come back to the Board in September. It was noted the SAIL application is due October 5 to the Florida Housing Finance Agency. Centennial would need contract and site plan approval form filled out and verification of utilities. The Advisory Board could review the presentation next week and before the regular September CRA meeting. The members discussed if they were awarded the 4% SAIL, if they could apply for the 9%, however, the timeline is Centennial would have to accept the SAIL if awarded. Vice Chair Katz favored seeking the 9% first and if that failed, the opportunity for CRA financing this year as the option. Ms. Romelus agreed as did Mr. Casello. There was consensus to apply for the 9% and then discuss the non-competitive bids after the 9% application which is due in early September. Mr. Simon asked if there was any interest to move forward with acquisition by Centennial while they are going through the non-competitive application. Chair Grant wanted the CRA Advisory Board to review it because they have a little bit more time if they do not get 9%. If they do not receive the 9% credits, they could still apply for the 4% credits. Mr. McCray requested a copy of who voted for what and learned it could be obtained via public records request. There was agreement for the Advisory Board to review the proposal and come back in September to finalize negotiations. VI. New Business A. Discussion and Consideration of CRA Advisory Board Attendance at the 2017 Florida Redevelopment Conference Mr. Simon explained the budget allows for funding for travel to the above. Last year several members of the Advisory Board attended the conference. Due to information and deadlines for registrations, staff understood the Advisory Board members were approved. Last year, the CRA Board wanted to approve attendance for the next Conference. This year, the Conference is October 17th through October 20th. Mr. Casello asked if it was legal for CRA Advisory Board members to attend and learned it was and other elected officials who are not part of the Board attended. It was a Board decision. He suggested members that did not go last year attend. Attorney Rosamell suggested issuing a public notice the advisory board members would attend. Mr. McCray asked about this because this is the only advisory board that was sending its members to a conference. No other Board does so. He noted legal indicated it was as long as it is okay. Chair Grant favored paying the registration and conference, but not the mileage and meals. He thought there was a learning aspect and perhaps the Chair of other advisory boards, if there is a conference, they receive reimbursement for the lodging and registration. 19 Meeting Minutes Special Community Redevelopment Agency Boynton Beach, Florida August 29, 2017 David Katz, 67 Midwood Lane, objected to the allocation last year. He noted Vice Chair Katz questioned it last year and Mr. Casello agreed with Vice Chair Katz comments. Chair Gant was concerned about the responsibility to the taxpayers. Commissioner Romelus believed education and a conference would yield a better product. Mr. Katz explained as the Chair of the Planning and Development Board, he calls the member beforehand and recommends they go to staff and ask questions. The CRA has a Director and Assistant Director that could provide the same information without the cost if they attended and advise the advisory board members about the conference. If all seven advisory board members attended, it would cost $8,400. Mr. Katz pointed out last year members of the Planning and Development Board attended a conference in Palm Springs and paid $25 each. The members did not get reimbursed and he did not support reimbursement as they are volunteering, The backup for the prior item was not provided to the public and staff had informed him it was against the Florida statute. He thought Statute 163 was specific about what CRA tax money can be spent on and advised it was for Board members and it never mentions an advisory board. He hoped it would not result in ethics complaints noting the CRA Advisory Board is not quasi-judicial. He thought it was not right to send the advisory board members on a trip with taxpayer funds. If may be legal, but it may not be right. He read a passage from James Madison "I cannot undertake to lay my finger on that article of the constitution which granted a right to Congress of expending on objects of benevolence the money of their constituents." Mr. Katz thought it was unwarranted. No public comments were received. Vice Chair Katz agreed it opens a slippery slope and there is no one more important than another. He thought someone could go and convey information and obtain materials and resources to provide an education locally. He agreed with Mr. Katz' comments. If he supported the request, he would send the liaison for any advisory board if there is a worthwhile learning event. Ms. Romelus favored sending three members and asked how many Board members are going to the conference in October. Mr. McCray responded he had not made his decision. She thought no one was going and thought if there were funds allocated and if individuals attended and brought information back, it would be helpful. The Advisory Board is asked to review things that are high level. She thought the advisory Board can rotate attendance, if CRA board members are not going. She noted Linda Cross attends every CRA meeting and thought she should attend. Ms. Romelus attended the conference last year and she learned a lot. They are volunteers. If none of the CRA Board members are going, she thought the offer should be extended to the Advisory Board. They will have a benefit. Mr. McCray noted Mr. Pollack, Vice Chair of the Advisory Board was present. Chair Grant looked up the quote from Madison and said it was different because it was about spending tax dollars to help French refugees from the Haitian revolution from all Meeting Minutes Special Community Redevelopment Agency Boynton Beach, Florida August 29, 2017 Wikipedia. He was aware City Boards have community support funds. He thought part of the new way of government is helping the community and he thought a report should be given. Last year, Linda Cross, the CRA Advisory Board Chair provided a report. He favored limiting the conference to two members and the CRA AB can decide who would go. Mr. Casello thought a rotating basis would be appropriate with the first choice of who to send be someone who has attended in the past. Just lodging and conference expenses would be paid. Mr. Pollack advised most of the Board works and they need months in advance to schedule attending in October. He thought it was a good idea and two people should go. They could learn and come back. There was consensus to limit the conference to two persons and to limit the cost to conference fees and lodging. Vice Chair Katz favored a cap at $1,200 and they could reimburse for lodging. Chair Grant liked the registration and the lodging, not mileage or meals. Commissioner McCray did not approve of it. Mr. Casello was fine with the registration and lodging. Ms. Romelus was also fine with the discussion. Chair Grant requested a motion to allow two members of the CRA Advisory Board with funding allowed for lodging and registration. This would become a policy so the do not have to return to the Board for approval next year Motion Commissioner Romelus moved to approve. Mr. Casello seconded the motion that passed 4-1 (Commissioner McCray dissenting.) VII. Adjournment Motion Ms. Romelus moved to adjourn. Mr. McCray seconded the motion that unanimously passed. The meeting was adjourned at 9:56 p.m. I ca�, I w"'L C) I-k'P Catherine Cherry Minutes Specialist 21