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Minutes 09-27-17MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD HELD ON TUESDAY, SEPTEMBER 27, 2017, AT 6:30 P.M. IN CITY HALL COMMISSION CHAMBERS, 100 E. BOYNTON BEACH BOULEVARD BOYNTON BEACH, FLORIDA PRESENT: Steven B. Grant, Chair Justin Katz, Vice Chair Joe Casello Christina Romelus (arrived 6:37 p:m.) ABSENT Mack McCray I. Call to Order Chair Grant called the meeting to order at 6:31 p.m. II. Invocation Mike Simon, Executive Director Tara Duhy, Board Counsel Mr. Casello gave the invocation followed by the members reciting the Pledge to the Flag. III. Roll Call The Minutes Specialist called the roll. A quorum was present. Chair Grant announced Ms. Romelus had indicated she would be late to the meeting. IV. Agenda Approval A. Additions, Deletions, Corrections to the Agenda Chair Grant added discussion of the Purchase & Sale Agreement regarding 480 Ocean Avenue to Old Business as Item G. Motion Mr. Casello moved to approve the addition. Vice Chair Katz seconded the motion that unanimously passed. Meeting Minutes CRA Board Boynton Beach, Florida September 27, 2017 B. Adoption of Agenda Motion Vice Chair Katz moved to approve the agenda. Mr. Casello seconded the motion that unanimously passed. (Ms. Romelus arrived at 6:37 p.m.) V. Legal 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 Vice Chair Katz advised he has a meeting scheduled on Monday with Habitat for Humanity. Mr. Casello disclosed he met with the developers of the Town Square project. Ms. Romelus had no disclosures, but apologized for her delay in getting to the meeting.. Chair Grant had no disclosures. VI. Announcements and Awards A. Florida Festival & Events Association Award Presentation by Dan Goode, Board Chair, from the August 2017 Annual Conference Tracy Smith -Coffey, Marketing and Business Development Specialist, introduced Dan Goode, Board Chair, Florida Festival and Events Association, to present the awards to the Board. Mr. Goode thanked the Board for the opportunity to make the presentation to the Board. He is also the event director for Sunfest and it was good to see what Mr. Simon has accomplished over the years, which was evidenced by the awards. He explained there are three budget levels and 16 categories within them. He commented it is impressive if an organization receives two or three awards. He advised the CRA receiving nine awards was extremely impressive. He announced the following awards: • Boynton Beach Haunted Pirates Fest and Mermaid Splash radio ad - 1st place; • Boynton Beach Haunted Pirates Fest and Mermaid Splash website - 1St place; 2 Meeting Minutes CRA Board Boynton Beach, Florida September 27, 2017 • Boynton Beach Haunted Pirates Fest and Mermaid Splash promotional mailer — 1 st Place. • Holiday tree Lighting and Concert outdoor ad signage - 1 st place; • Annual report, event recap/annual report - 2nd place; • Blarney Bash Outdoor Ad Stage signage - 2nd place; • Blarney Bash, Outdoor Add billboard — 2nd place; • Boynton Beach Haunted Pirates Fest and Mermaid splash PR /media campaign - 3rd place; and • Holiday Tree Lighting and Concert outdoor ad/billboard - 3rd place. There were nearly 450 submissions and Mr. Goode praised the CRA on its accomplishment. Pictures were taken of the Board and the awards. Ms. Smith -Coffey announced the CRA won the Florida Redevelopment Association award for outstanding new building project for 500 Ocean and also won eight international festival and event awards, which will be on the October agenda. B. Movies in the Park Mercedes Coppin, Special Events Coordinator, announced the Friday, October 6th, Movies in the Park Kick -Off event. The free event at the Ocean Avenue Amphitheater will begin at 7:30 p.m. She noted the cover sheet erroneously listed the time as 8:30 p. m., however the website and Facebook page reflect the correct start time. Descendants 2, a PG action, fantasy pirate movie for all ages will be the feature film. Prior to the film, a promotional video will be viewed promoting CRA business, including the Boynton Beach Dive Center, Infusion Cafe, Limbo Charters and Posh Properties. All event goers will be entered into a drawing to win gift certificates or special promotions to the featured businesses. Food and beverages will be available for purchase. Ms. Coppin announced the 6th Annual Boynton Beach Haunted Pirates Fest & Mermaid Splash is fast approaching. The Descendants 2 film was selected due to its pirate themes and because of the resemblance of the main character in the movie and the featured pirate character used in the event's marketing material. The pirate character will make a special appearance at the Movies in the Park event to promote the Pirate Fest and provide photo opportunities for the event's guests. The 6th Annual Boynton Beach Haunted Pirate's Fest is will take place on October 21St and 22nd on E. Ocean Avenue between Seacrest Boulevard and Federal Highway. There are 12 stages of live entertainment, three children's areas, two food courts, six bars, live mermaids and pirates galore. Ms. Coppin will provide additional information at the October Board meeting. 3 Meeting Minutes CRA Board Boynton Beach, Florida September 27, 2017 VII. Consent Agenda A. Financial Report Period Ending August 31, 2017 B. Monthly Purchase Orders C. Approval of CRA Board Meeting Minutes - August 8, 2017 D. Approval of Agenda Items Submission Schedule for FY 2017 — 2018 E. Consideration of the Economic Development Grants for FY 2017-2018 Motion Vice Chair Katz moved to approve the Consent Agenda. Mr. Casello seconded the motion that unanimously passed. VIII. Pulled Consent Agenda Items None. IX. Information Only Mr. Casello noted there are still a lot of home furnishings mixed in with hurricane debris at curbside that will not be picked up The City sent letters and Code has knocked on doors. He hoped residents would comply so the matter could be addressed. A. Public Comment Log B. Marketing and Business Development Campaign C. Coastal Star Article: "Boynton Beach Grant Money Helps Eateries Open, Move Improve" X. Public Comments Susan Oyer, 140 SE 27th Way, commented she had requested the discussion regarding Item 14. B. Her grandfather and Ray Wilcox constructed a home years ago that is now a historic home. The south side of the home is about five feet away from the property line of the Cottage District. She requested the Board consider giving her a strip of the land to buffer the home or allow the family to purchase a portion of the land. They had approached the prior CRA administration and it was never an issue. The land would make the home look appropriate and original. Mr. Casello requested the family submit a formal request to the CRA with a copy to the City. Meeting Minutes CRA Board Boynton Beach, Florida September 27, 2017 Sherry Johnson, Director, Community Caring Center and Secret Garden, invited the Board to the 1St Culinary Graduating Class event. The program has a six-week class that introduces 10 students to the culinary industry. The class is comprised of nine Haitian woman. Four of them want to continue and own their own business and will begin an entrepreneurial program. They obtained a scholarship to attend South Tech and they worked with four of the women to obtain their GED. They also received an invitation to participate at Palm Beach State -College. The event will be held at 5:30 p.m. at the Secret Garden on September 28tH Ms. Johnson explained their job fair was supposed to take place on the 25th, and it was moved to Monday, October 23rd at Benvenuto at 4 p.m. to 7 p.m. Mayor Grant will speak, and Commissioner Mack Bernard will be present to speak and give a cooking demonstration. She commented they have a guest chef who opened 37 restaurants across the state with a restaurant in Weston and Disney, has been personally training some of the women. They held a High Tea and the students learned about the tea. Mr. Casello thanked her for all she and the Community Caring Center does. He has been part of the program and has watched it grow. He was proud they are seeing the fruits of their labor. Mr. Simon announced he and the Police Department conducted interviews for the third Officer for the Neighborhood Officer Program and Officer Rivera was hired. Sergeant Diehl, Officer Paramore and Officer Rivera were present. Officer Rivera explained she has been with Boynton Beach Police Department for two years and she devotes her time to community events and does a lot of mentoring. She was excited to be part of the team and looked forward to working with Sergeant Diehl and Officer Paramore. They will be at the Pirate Fest on October 21St and 22nd. Ms. Romelus welcomed her. XI. Public Hearing XII. Old Business A. Consideration of the Inspection Reports Associated with the Purchase and Sale Agreement with the Boynton Woman's Club for the Property Located at 1010 S. Federal Highway Mr. Simon explained this item is the result of studies and a report required during the feasibility period for acquisition of the Woman's Club. There were no major surprises. The roof will need to be addressed within the next 12 to 18 months and the building will have to be fumigated for termites. Otherwise, the building is in good condition. Mr. Casello asked about natural gas as there are above ground propane tanks and learned the CRA will remove the tanks, and any gas lines. Mr. Simon recommended the Board decide to move forward with acquisition. The Board had previously approved $200,000 in this year's budget and staff would like to begin to use it to address some of the minor elements and bring back a grant application to the 5 Meeting Minutes CRA Board Boynton Beach, Florida September 27, 2017 State for assistance. Staff has some ideas for sponsors/donors in their efforts to fundraise regarding building maintenance. He explained the closing for the property would take place on the 29th if approved. Motion Vice Chair Katz moved the CRA move forward with acquisition. Ms. Romelus seconded the motion that unanimously passed. B. Consideration of Purchase and Development Agreement for the CRA Owned Property located at 711 N. Federal Highway to South Florida Marine, d/b/a BZ Woods Properties, LLC Mr. Simon explained this item was heard in August and the contract was included in the meeting backup as was an outline of the important terms. The purchase was $365,000. The Woods would provide a deposit of $73,000 and the amount of Commercial development grant funding assistance will not exceed $117,000. The closing date is October 31 st. The major site plan application would be submitted 60 days after the design approval of the site plan is given, and the permit appiication would be made 90 days after the site plan approval. Com men cement/construction Would start 120 days after permit approval, and then 180 days to finish. There is a reverter clause and a first right of refusal.. The Board approved the second mortgage clause at the August meeting with 10 -year stipulated time period resulting in no reduction during the first five years in the amount of second mortgage protection. There would be an offset in the value of the purchase price from years six to ten and the amount would be reduced by 20% a year. The Woods requested the Board reconsider their first request to allow the 10% reduction in the second mortgage for each year during the 10 years or consider no reduction for the first two years and a 12.5% reduction for years three to 10. Another request is for the Board to consider a slight change to the requirement for them to create 12 jobs they feel their project will create over the 10 -year period. The Woods agree to all else in the contract. Chair Grant asked about the Board's recourse. Attorney Duhy identified the default language contained in paragraph 20.1. Chair Grant asked about 19.2 D of the contract which pertained to the renovation grant and further noted the CRA did not state if the positions were full time or if it was more outreach to try to hire employees, student interns or part-time workers. When the Woods were selected, it was not as clear and staff did not feel they could alter the requirement without Board direction. The Board could leave it open-ended or make it more specific. Chair Grant favored hiring 12 local employees and asked the Board if unpaid internships were satisfactory. Mr. Casello felt 12 positions were promised and that is how many should be hired. Vice Chair Katz recalled the Board selected the Woods based on their proposal and accepted a bid for $150,000 less. They accepted an offer and negotiated terms. He thought the Board should approve the contract as designed and thought it deviated from the process by taking a lesser offer by hedging on their promises. Employee means the person is paid. Part time is 30 hours or less. Vice Chair Katz wanted 12 real jobs created. He did not think a change to the Meeting Minutes CRA Board Boynton Beach, Florida September 27, 2017 second mortgage clause was fair. He would move to approve conditions as agreed on as drafted by the CRA. Mr. Simon noted the outreach efforts for the hiring of 12 local employees was intended to be over the course of the second mortgage and asked if the Board wanted a time frame. If they hire six employees, within 30 days of receiving their certificate of occupancy, they can provide the funds on a percentage basis of the 12 employees. When they have the full 12 employees, they would receive the full amount. The timeline is at the Board's discretion. Vice Chair Katz noted it takes time to find 12 people and the need was stated. He favored 8 to 12 months to hire the individuals. Chair Grant commented there was a 12 -month deadline and asked about the percentage. He asked, if they hired six employees at the beginning, if they would receive 50% of the renovation grant reimbursement. Vice Chair Katz asked if the 12 position would need to continue to exist until a time certain. Attorney Duhy suggested a timeline be concurrent with the second mortgage time -period. Attorney Duhy suggested dividing the $50,800 by 12 positions to determine a reimbursement value for each position. Mr. Simon referred the Board to Attachment 1. Mike Wood, 725 N Federal Highway, explained he intended to hire 12 employees in two to three years. He could not hire 12 employees right off the bat. They have to keep growing to be able to pay the salary. Mr. Simon recalled Mr. Woods talked about reaching out to South Tech and other institutions to develop some type of a training program. He asked if that was still under consideration and learned it was. He has been speaking with South Tech regarding the Outboard 9 motors, which is what they need to continue their growth. The Inboard 9 motor is more of an automotive repair shop. South Tech is where they will go as soon as they receive their certification, but they had asked for more land for the Mercury franchise as they have to have so many motors on the premises. Mr. Casello thought each position has a monetary value and as filled, the CRA should release the funds up until the time the second mortgage is satisfied. Chair Grant agreed. Ms. Romelus asked how the amount was paid. Attorney Duhy recommended language consistent with the release of the second mortgage. The Board can require a report that complies with the provisions to prove out and then release the funds. Mr. Simon thought, similar to a TIF agreement, the purchaser would provide documentation of the new hires on the annual date of their Certificate of Occupancy. If two people were hired the first year, they would be reimbursed for two employees and then at the next anniversary, if two more were hired, funds for two more employees would be released. Ms. Romelus asked how a renovation grant related to employees and learned the funds did not fall into a particular program and was an additional request by the applicant, so staff kept the program grants the same and created an additional incentive, which can be tied to the jobs. Attorney Duhy suggested defining what the employment opportunity would be. There was discussion about training programs that could qualify. rA Meeting Minutes CRA Board Boynton Beach, Florida September 27, 2017 Ms. Romelus was amenable with 12 jobs spread out each year with the Certificate of Occupancy renewal. There would be an update and then reimburse the Woods based on the number of new hires. She was flexible with the type of hiring, maybe having six full time and six part-time jobs, but it has to be paid employment and not a volunteer or intern program. Mr. Casello asked what would occur if they did not reach 12 employees, and learned then the Woods would not be reimbursed. He thought a 12 to 18 months to hire someone was appropriate. Chair Grant and Ms. Romelus favored 24 months. The reimbursement rate, per job, was $4,233. Vice Chair Katz thought part time was okay at a partial reimbursement. A full-time employee would get $4,233 and a part-time hire should be half. He did not favor anything beyond 24 months and did not think that a portion of the positions were estimates based on anticipation of growth. He thought the new facility would require the new positions. Ms. Romelus did not want to put too much pressure on business owners, as economic downturns occur and it is not the fault of the business owner. They never asked if they were full or part-time jobs. She did not want to ration the funds based on the type of employment given, she wanted to leave reimbursement at $4,233 per hire regardless of part or full time. Chair Grant agreed. Students from South Tech go to school during the day and cannot be full-time employees. Vice Chair Katz wanted payment to be commensurate with whether it was full time or part time and favored giving 24 months to comply. He felt the details were part of the sales pitch, and now just before signing, Mr. Woods was changing the terms of the contract. He wanted the contract to have teeth. Chair Grant supported the jobs being six full and six part-time jobs. Mr. Casello agreed but wanted the positions to be reimbursed commensurately with the full and half amounts. Mr. Casello also noted there was damage during the hurricane and some windows were broken. He asked if there was insurance on the building and learned there was. The CRA is self-insured and the front windows are not that expensive. Once replaced, the CRA can credit the Woods at closing for the value if they were going to replace the windows with superior windows or the CRA can escrow the amount of the repair if they were not and let them handle it during construction. Chair Grant requested a motion for consensus. Motion Vice Chair Katz moved to approve there would be no less than six full-time positions with the remaining six being part time, with part time being defined as a paid position with a minimum of 20 hours a week. The full-time hire gets the full allocation and the part time positions receive a half allocation, and to permit 24 months to have 12 positions filled. He asked what would occur if only eight positions were hired and learned they would not recoup the funds for them. Meeting Minutes CRA Board BoyntonFlorida-• - •-2017 Vice Chair Katz revised his motion to include what he previously moved, if the 12 positions are not created by the 24 -month period, then no additional funds can be obtained. Chair Grant clarified if he hired 3 full-time and 3 part time positions after the first year, they would receive $4,233 each for the three full-time positions and half the reimbursement rate for the three part time positions. Attorney Duhy explained the purchaser has the ability to meet the requirement, if not in the first year, then in the second year. Vote Mr. Casello seconded the motion that passed 3-1, (Ms. Romelus dissenting.) Chair Grant requested a motion changing the allocation for the second mortgage to after year six, to forgiving 20% a year to year 10, to 10% a year, or to 12.5% after the second year. Chair Grant favored the original agreement. Chair Grant asked for the Board's input. There were no objections and Chair Grant declared whatever was in the contract stood. Chair Grant requested a motion to approve the consideration of the purchase and development agreement located at 711 N. Federal Highway as amended. Motion Vice Chair Katz moved to approve as amended, Mr. Casello seconded the motion that unanimously passed. D. Consideration of the Purchase and Development Agreement with Heartfelt Florida Housing of South Palm Beach County Community Land Trust Inc. (Habitat for Humanity) for the CRA Owned Property Located at 117 W. Martin Luther King, Jr. Boulevard Mr. Simon presented the item and explained they sent the letter in June and proper notices were issued. The Notice of Intent to dispose of the property for less than fair market value was heard by the City Commission and approved. The Board only needs to execute the contract for a single-family affordable home within the Model Block project area. Mohamed Abdalla, 181 SE 5t" Avenue, Delray Beach, Senior Director, Government and Community Affairs, thanked the Board for their donation and assisting Habitat for Humanity to enhance the community. Chair Grant noted the home is between a church on Seacrest and multi -family homes. He asked if there would be a security fence. Mr. Abdalla agreed to ask the contractor and would get back to him. Mr. Casello asked if there was a family in mind and learned they have a family ready, but he did not know if 9 Meeting Minutes CRA Board Boynton Beach, Florida September 27, 2017 he could release their name and information. It is first come, first served, and Habitat has closed their process as they have nine remaining people in the pipeline. The applicants are placed depending where they request to live. Three applicants requested Boynton Beach and once they meet the 400 sweat and 100 hours are class hours, they get the house. Motion Mr. Casello moved to approve. Mr. Romelus seconded the motion that unanimously passed. D. Consideration of Second Amendment to the Purchase and Development with Habitat for Humanity of South Palm Beach County Mr. Simon commented this is a request for a second amendment between the CRA and Habitat to construct two single-family affordable homes on two lots previously owned by the CRA. The amendment will increase the sales price that was originally included in the contract in 2010 of $120,000 so the contract and purchase price would match up, when completed to $230,000. In the first original contract, the CRA requested Habitat attach a soft second, similar to the 711 North Federal Highway item. In this instance, the property was donated as part of the buy down and staff asked for a $20,000 soft second be placed on the property to secure the value. Since the property is being developed into a Land Trust entirely for single-family ownership, the need to secure the land value is not an issue and the soft second is not needed because the land cannot be transferred. Mr. Simon explained Habitat wants to amend the development time line from October 21, 2012, to May 31, 2018, The 310 NE 11th Avenue property already has a home on it and is ready to be sold. The second home and the next home is ready to start construction and can be completed by the 316t. Chair Grant noted when the property was in the Land Trust, the land value was no longer part of the appraised value of the property. The homeowners can receive the homestead and the value of the property can only increase by 3% of the consumer price index every year. There is a $20,000 value to the land and the City/CRA misses out on $160 a year in taxes. He asked if something could be done with the Land Trust to pay for the missing value being part of a non-profit and favored it be pursued. Mr. Abdalla responded the Habitat team and attorneys were working on the issue and when it is complete, they will return to the Board. Chair Grant suggested agreeing to the item contingent on them returning to the Board so the attorneys can move forward with the $230,000 price. Ms. Romelus was uncomfortable because the purpose of affordable housing through a Land Trust is to help keep the price of the house affordable. Chair Grant understood, but noted the City had to raise the fire assessment and 20% of the homes in the City pay under $200. The homes would still be affordable once they are occupied and subject to the homestead exemption, in addition to any further exemptions the State Legislature may enact. 10 Meeting Minutes CRA Board Boynton Beach, Florida September 27, 2017 Chair Grant requested a motion to move forward with the agreement subject to a contract with the Land Trust for the land value. Ms. Romelus asked Mr. Abdalla if this was something Habitat attorneys were moving towards with other cities. Mr. Abdalla replied he would have to check with his leadership team. Mr. Simon clarified the two items under discussion are whether the Land Trust should pay appropriate taxes on the land that is currently being valued at zero by the Property Appraiser. The only thing the owner of a Land Trust home pays in property tax is on the value the property Appraiser establishes for the home. The value of the land is deducted from the value of the house. The Land Trust has multiple properties and muitipie lots that the Property Appraiser, as a collector, has a formula and activates. The second subject to the amendment to the contract to have Habitat for Humanity sell the property to the homeowner and keep the property in the Land Trust. The issue is one becomes contingent on the other. If there is no agreement with the land trust to pay the property tax formula, the contract cannot go forward with the homeowner that is about to close because the CRA is requiring the other issue be resolved. If the CRA wants to consider trying to create another formula to recoup some of those values, it is a separate agreement with the Land Trust because it would affect all 21 properties in Ocean Breeze West and with several homes in the Land Trust. The amount accumulates to a significant amount. Mr. Simon did not know if they could resolve it in time. Ms. Romelus thought the proposal before the Board should not be contingent on that issue. Chair Grant withdrew his request for the Land Trust to pay the property value for the land for this home, but favored the Land Trust pay the property value in the future. Ms. Romelus moved to approve the second amendment to the Purchase and Development Agreement with Habitat for Humanity. Mr. Casello seconded the motion that unanimously passed. E. Consideration of the Guidelines and Application for the Boynton Beach CRA Non -Profit Organization Grant Funding Program Thuy Shutt, Assistant CRA Director, explained the program was developed to inform all interested parties, especially non -profits, of available CRA funds; have a transparent program and evaluation; identify funding based on each fiscal year's allocation; have regular rounds of recyclable grants with measurable outcomes; and ensure there is a way to objectively evaluate the performance of non-profit applicants. At the August 8th meeting, the Board approved the program's framework and directed staff to draft a review process for the Board to review. She advised the grant's objectives is to assist non -profits seeking to leverage funds with other funds. The guidelines were included in the meeting backup, which included ways to review the application, instructions, forms, documents, budget annual report and scoring sheets. There is information regarding eligibility, eligible 11 Meeting Minutes CRA Board Boynton Beach, Florida September 27, 2017 activities which were programs related to economic development that serve the CRA, residents, businesses and clientele. The program must further the CRA's mission, objectives and plans. The Board had asked staff to hold two workshops regarding the program. The first workshop is scheduled for October 23rd at 1 p.m. and the second on November 13th at 6 p.m. A sample flyer, which will be in translated in Creole and Spanish, was viewed. Draft documents are pending final review by legal and some clarifications were anticipated. Administrative costs are permitted only for activities that directly benefit the CRA. Ms. Shutt clarified funding for certain special events and public relation's activities should be related to job creation and training. To -date, staff contacted the Community Caring Center, the Woman's Circle and the Gold Coast Down Syndrome organization because they have the economic development programs and hoped they would be interested in the program. There will be regular press releases, ads, social media and other media along with other economic development grant assistance. All of the non -profits viewed the program favorably. Chair Grant wanted to ensure it would not be burdensome to obtain the grant funding and hoped year two is just changing the number in the budget. Ms. Shutt agreed. Staff will evaluate whether applicants met the program's goals. Each year, applicants would have to reapply. The Board can also add more categories. Currently the four categories are economic development, affordable housing, elimination of slum and blight, and recreation programs. This program is new. There are other programs to assist for-profit entities and those programs will remain the status quo. They want to advertise and hold a workshop next April and then May so the Board will know what level of interest there is for next year. It was noted the non-profit must be a 501(c) 3 at time of application. Ms. Shutt explained this year's program was delayed three months and will be launched in October. It was also possible for the Board to make adjustments. Motion Ms. Romelus moved to approve with whatever needs to be legally approved. Vice Chair Katz seconded the motion that unanimously passed. F. Consideration of Tax Increment Revenue Funding Agreement Policy Mr. Simon presented the item as contained in the meeting material. Attorney Duhy explained there was prior action by prior Boards that called into question whether the Board had a policy with specific criteria regarding the Tax Increment Revenue Funding (TIF). Out of an abundance of caution, staff wanted a clear policy that explained what would be done in accordance with the Statute. The next step would be to develop more detailed application criteria that would require certain information, which is generally sought with regard to financial capability and pro formas, etc. This item would be the broad-based policy that gives the Board flexibility. The more detailed informational request will be in an application process that staff would provide in the future. 12 Meeting Minutes CRA Board Boynton Beach, Florida September 27, 2017 Motion Mr. Casello moved to approve. Ms. Romelus seconded the motion that unanimously passed. G. Discussion of the Purchase & Sale agreement regarding 480 Ocean Avenue Chair Grant presented the item Ken Kaleel, 54 NE 4th Avenue, Delray Beach, representing Ocean Avenue Pride, was present with Mr. Lucibella, one of the owners of Ocean Avenue Pride, for this item. He explained since the Purchase and Redevelopment Agreement, they have been pursuing the reconstruction and renovation of the building, and there have been challenges. According to the Agreement, they have to have the Certificate of Completion by September 30th and it is beyond their control to complete it by then. He explained they have scheduled the final inspection, but the City was unable to provide a final fire inspection due to an inspector retiring. They were also delayed due to the recent hurricane, which caused some damage that will need to be repaired. They requested an extension. Mr. Lucibella was present to discuss their future plans. Mr. Lucibella explained they may get the Certificate of Occupancy on Friday, contingent on the fire inspection and they spent more than $500,000 on the building Chair Grant asked if the building would be finished by Pirate Fest on October 21St and 22"a Mr. Lucibella explained, regardless of whether they receive their Certificate of Occupancy or not, they would submit a change order and replace the roof. He did not know who determined the building should be painted two colors and advised it should be one color. He learned someone from the City indicated the building had to be two colors and they were investigating. He praised Mr. Simon and City staff, but he could not guarantee the building would be open on October 21St. The problem was the building required a service kitchen, which was why the prior restaurant did not succeed. They now have a full kitchen and still have work to do after the Certificate of Occupancy. They cannot have a grand opening unless they can hold their heads high. They requested 90 days, but hoped to be open in a few weeks. Mr. Casello asked what repairs amounted to $500,000. Mr. Lucibella responded the roof was not a major expense, but the moving window walls were expensive items and roof and truss over the addition. He could review the punch list with Mr. Simon and let him know what the money was spent on. There is new kitchen equipment and the hood system was expensive as the building never had a hood. Chair Grant was fine with an extension to the last business day at the end of the year. Mr. Casello was not comfortable with the 90 days and favored 30 days commenting between the Magnuson House and the Little House, they are still not able to open. Since Mr. Lucibella indicated they were close to the Certificate of Occupancy, he thought 30 days was appropriate. Mr. Lucibella thought it was unfair to compare the building with the 13 Meeting Minutes CRA Board Boynton Beach, Florida September 27, 2017 Magnuson House. He advised there was continuous work and expenses ongoing. He pointed out they have no desire to have an $800,000 property that is not income producing. The onus was on him, but he wanted the job done right. Vice Chair Katz asked when they would open and learned as soon as it was right. They have no desire to have a hard asset gathering dust. There is pressure on them to produce an income producing property and they put their best foot forward with the project. Mr. Casello asked how long Ocean Pride was in possession of the building. Mr. Kaleel explained the fair question was when it was approved and when the permits were approved as there are a lot of elements. The building was under construction less than nine months and they have been diligently proceeding. Noone from the staff said they were not in compliance with the agreement and their due diligence. Mr. Casello disagreed and commented he saw no work being done at all. Mr. Kaleel pointed out that is a product of the construction industry. Motion Vice Chair Katz moved for a 60 -day extension. Mr. Casello seconded the motion that passed 3-1 (Ms. Romelus dissenting.) Ms. Romelus advised she favored a 90 -day extension. XIII. New Business A. Consideration of a Letter of Interest Submitted by Tri -Unity Homes for the GRA Owned Property Located at NE 4th and NE 5th Avenues, a/k/a the Cottage District Mr. Simon reviewed the item as contained in the meeting materials. A letter of intent was received from Dr. Cory Collins of Tri -Unity Smart Homes for acquisition of property in the Cottage District. Tri -Unity Smart Homes sought to acquire the property for $10 to offset the creation of 30 affordable single-family homes, and for the CRA to bear the costs of the site's development, including the hardscape, sidewalk, and lighting features. They will sell three and four bedroom homes between 400 to 1,500 square feet to sell between $120,000 and $180,000. Ten percent of the sale of each home would go back to the CRA as a cost of land offset. Tri -Unity proposed construction of a family education center to offer educational training for medical billing and pharmacy tech positions for high school students and have limited space for a start-up, business area. The CRA had only envisioned the property for single-family homes, but could consider the proposal. When the CRA receives a letter of interest, staff brings it to the Board for consideration. The Board could also request further information, entertain the letter of interest as submitted, reject the letter or direct staff to issue an RFP. Under the Notice of Intent to Dispose, the 30 -day notice would allow other interested parties to respond. 14 Meeting Minutes CRA Board Boynton Beach, Florida September 27, 2017 Mr. Casello asked if tiny homes were practical. Mr. Simon responded micro -housing was not a concept that the market would support. Mr. Casello recalled the Board had discussed the Cottage District would be unique. They issued an RFP and did not receive any response. He thought if they had added language in the RFP, they may have gotten a better response. Vice Chair Katz agreed the Board just established a process for the letter of intent. He wanted to issue an RFP, but he did not recall if the land was offered for free and learned staff asked for any proposal with some parameters. After the last RFP, staff met with other developers and learned a lot about the type of product that is more worthy of their plan and gained a lot of knowledge. An RFP developed under the HOB plan could generate some interest. The property was also the site Susan Oyer referenced earlier in the meeting pertaining to an easement. Vice Chair Katz wanted to go to RFP and include language about the easement. He was concerned the property would be a coat of shiny paint to entice and favored if giving the land for free, he liked the idea of the 10% giveback. Dr. Collins explained he was driving past the property for two or three year and it has been vacant. The 400 square feet is not a house, but he looked at the definition of a cottage, which are small, simple homes. When he initially introduced the concept, the homes were between 900 and 1,500 square feet, but there could be smaller homes. Chair Grant noted the Community Caring Center is looking to move their property and there is vacant land in the HOB, mostly owned by the Palm Beach County Housing Authority. He asked if the RFP should include, with approval from the Palm Beach County Housing Authority to include all the vacant land so they can infill the area. There is too much vacant land. There are also other areas. He also favored drafting an RFP and the CRA reach out to other vacant property owners to include in the RFP so the CRA can build a bigger and better project and have a complete neighborhood. Dr. Collins explained the educational component regarding pharmacy technician training yields $20 to $25 an hour jobs as well as medical billing and he currently teaches these classes. Chair Grant noted a teaching center requires certain zoning. Mr. Simon explained it could be incorporated in the Ocean Breeze East item. Chair Grant also was speaking with CareerSource and use the CRA's property on MILK Jr. Boulevard and Federal and there are commercial properties that could be used. Susan Oyer, 140 SE 7t" Way, reiterated her family hoped to acquire or purchase a strip of land for a home her grandfather constructed. She requested the additional buffer be included in an RFP. Chair Grant requested she submit a written request. Motion Vice Chair Katz moved to direct staff to develop an RFP for the Ocean Breeze East property to be voted on and issued. Chair Grant asked about contacting the Palm Beach County Housing Authority and vacant property owners to include the parcels in the RFP as an anchor to begin building 15 Meeting Minutes CRA Board Boynton Beach, Florida September 27, 2017 affordable homes in the CRA. Attorney Duhy clarified the Board could choose to: accept the letter of intent and advertise it, and if a second interested party responded, the Board can issue an RFP, or an RFP could be issued tonight. Brian Fitzpatrick, 409 NE 1St Street, recommended not voting to issue an RFP for the Cottage District because there were no responses last time. He supported waiting until the Community Caring Center relocated. He noted years ago after several attempts to contact the Palm Beach County Housing Authority about Cherry Hill, he received a response. At that time, the CRA planned to redevelop the area and had demolished Boynton Terrace, but now was interested in selling the property. He had told the City Manager about it. He recommended going back to the Housing Authority to purchase the land as it is important to bring money into the City for housing. The City may have to hire a consultant to advise the City how to create a Housing Authority because the CRA cannot wait any longer. The money is available now and he noted Delray Beach, Boca and Pompano Beach all have housing authorities. He did not want to give the land away. Chair Grant did not want to accept the Letter of Intent and asked if they wanted staff to contact the Palm Beach County Housing Authority and vacant landholders. There could be components in the RFP regarding available land to build single-family homes. Mr. Casello thought it might be a viable option they could review in the future, and they would have to consult the City Commission. He requested staff contact the Palm Beach County Housing Authority regarding their vacant land to move forward with the Cottage District and with other land. Chair Grant asked Vice Chair Katz if he first wanted a study of vacant property to include in the RFP and learned Vice Chair Katz views them as two distinct issues. He agreed it may be a good time to approach the Palm Beach County Housing Authority to give the CRA their land as the CRA has a good relationship with Habitat and affordable infill housing builders. The Housing Authority has not done anything with the property. He favored Option 3 to draft an RFP for just the Ocean Breeze East parcel, but would entertain directing staff to look into properties from the Housing Authority and try to get as many properties as possible. Chair Grant bundled the properties, but they are two separate things. Motion Vice Chair Katz moved for Option 3 go to RFP and keep the properties separate. Ms. Romelus asked how soon the Community Caring Center would move and the block will be clear and learned Mr. Simon planned an update to the Board in October or November regarding where they are with the CRA's offer to provide a relocation site and purchase their property. He has not had an official response. Ms. Romelus did not want to move forward with a RFP and wanted to wait for a more concrete offer from the Community Caring Center. 16 Meeting Minutes CRA Board Boynton Beach, Florida September 27, 2017 The motion died for lack of a second. Motion Ms. Romelus moved to reject the letter of interest. Mr. Casello seconded the motion that unanimously passed. Chair Grant requested staff move forward with contacting vacant lot owners regarding issuing an RFP for a single-family homebuilders. Even though the lots are privately owned, the housing did not have to be affordable. It could be market housing and by pooling the land, they would get a better rate than selling separate. Chair Grant thought it could not hurt to ask. There was consensus to do so including contacting the Housing Authority. Vice Chair Katz favored approaching property owners of vacant land and when the Community Caring Center issue clears up, he thought the Board should discuss the matter. He felt there should be parameters regarding potential RFPs, micro units, and the square footage of the Cottage District. He just could not authorize its issuance and requested it be discussed as a future agenda item. B. Approval of the FY 2017 - 2018 Boynton Harbor Marina Dockage Lease Agreement Mr. Simon explained the lease agreement includes four different documents and the slip rate. Legal had already reviewed the lease agreement, the rules & regulations, the dockage lease agreement for multiple vessels, the safety accessory addendum and the transient dockage agreement. The Board increased the slip rate last year from $16 to $18 per linear foot and prior to that, had no rate increase for four years. The Marina is very competitive. Mr. Simon recommended staying the same and increase the rate next year. Not much has changed due to the market. The CRA also has to continue the fuel discount program. Mr. Casello noted the CRA spent $1 million to improve the Marina and asked if this would be the time to raise the rates. Mr. Simon explained the Marina Master Redevelopment Plan was completed and the Plan favors the tenant and the fuel discount program. Staff sought to implement the requirement for tenants to produce a trip log for each commercial vessel throughout the year. Once implemented, staff can start to build an economic development scenario between the municipal marina and the active commercial marina and the number of people and trips generated out of the slips. The scenario will also tie a benefit in the form of a rate increase or establish a rate to build a return on investment. The $1 square foot will increase the CRA's annual return and the Board could discuss it further in October. He thought an increase would upset tenants, but it would increase the annual return and expense offset. In response to a question about the consequences of not having a trip log, Mr. Simon explained there could be a late fee or penalty. Chair Grant favored charging a fee as 17 Meeting Minutes CRA Board Boynton Beach, Florida September 27, 2017 opposed to the tenant losing the slip. The Marina is full, except for one slip. One Marina charged the tenant a base rent and a per head, per trip fee. Ms. Romelus asked if tenants are charged seasonally or monthly and learned the CRA charges an annual rate and the overnight fee is addressed in the transient document agreement. Mr. Simon agreed to bring a comparable analysis and further information at the October meeting. Motion Ms. Romelus moved to table this item to the next meeting. Mr. Casello seconded the motion that unanimously passed. XIV. CRA Advisory Board A. CRA Advisory Board Agenda - September 6, 2017 B. Advisory Board Minutes - August 3, 2017 C. Pending Assignments from April 11, 2017 CRR Board Meeting 1. Review and Revise Current CRA Special Events Grants (Tabled 8/3/17) 2. Review and Revise Vendor Policy for other CRAs/Non-Profits D. Reports on Pending Assignments from August 29, 2017 CRA Board Special Meeting E. New Assignments 1. None XV. Future Agenda Items A. Consideration of the Rental use Agreement and Rate Sheet for the Boynton Woman's Club XVI. Adjournment Motion There being no further business to discuss, Vice Chair Katz moved to adjourn. Ms. Romelus seconded the motion that unanimously passed. The meeting was adjourned at 8:52 p.m. Catherine Cherry Minutes Specialist W-1