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Minutes 02-13-18 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD IN COMMISSION CHAMBERS, CITY HALL, 100 E. BOYNTON BEACH BOULEVARD, BOYNTON BEACH FLORIDA ON FEBRUARY 13, 2018 AT 6:30 P.M. Present: Steven Grant, Chair Mike Simon, Executive Director Justin Katz, Vice Chair Joe Casello, Board Member Mack McCray, Board Member Christina Romelus, Board Member 1. Call to Order Chair Grant called the meeting to order at 6:30 p.m. 2. Invocation The invocation was given by Board Member McCray. The members recited the Pledge of Allegiance to the Flag. 2. Roll Call Roll call established a quorum was present. 4. Agenda Approval A. Additions, Deletions, Corrections to the Agenda Chair Grant added Item 15 E, Consideration of Letter of Interest/intent for the purchase of property located at 115 N. Federal Highway. Vice Chair Katz added a discussion about a potential RFP for the MLK Corridor as Item F. B. Adoption of Agenda Motion Board Member Casello moved to approve the agenda as amended. Board Member McCray seconded the motion that unanimously passed. Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 13, 2018 5. Legal None. 6. 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 There were no disclosures made by the members. Board Member McCray thanked all for attending the Robert E. Wells Love Fest and advised the event was well attended, having more attendees than the Unity Day. He thanked the participants and the CRA staff for their efforts. Board Member Romelus wished all a Happy Valentine's Day. Board Member Casello advised he attended the Barrier Free Park event, which was well attended. Chair Grant also attended the Robert E. Wells Day and was glad to see the Neighborhood Officer Program personnel participating, distributing cotton candy and ices. 7. Announcements and Awards A. Movies in the Park Mercedes Coppin, Marketing, Events and Economic Development Assistant, announced the February Movie, Glory Road. She commented there were 115 event goers. An event survey and movie ballot was distributed requesting demographic information what movie attendees want to see. Forty surveys were returned. Seventy-four percent indicated they were City residents. Twenty five percent indicated they heard about the event through a digital source such as social media or the Catch Boynton website, and 22% heard about the event through a print source such as an advertisement or flyer. The next movie to be shown, based on the survey results, is Wonder Woman, which will be shown in March at the Ocean Avenue Amphitheater from 7 p.m. to 9:30 p.m. The event is categorized as a sci-fi fantasy rated PG 13: however, due to theatrical violence, mild language and sexual innuendos, parental discretion is advised. Benches are available and guests were encouraged to bring their own seating. A trailer of select CRA businesses will be featured prior to the movie and a drawing for gift cards to the featured businesses will be held at the end of the movie. Free popcorn is available to the first 100 moviegoers and other snacks and beverages are available for purchase. 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 13, 2018 B. Music on the Rocks Ms. Coppin advised the January 19th Music on the Rocks featured SteelTown Religion. About 125 people attended the event. A feedback survey was conducted and 40 surveys were returned. Based on the results, 68% of the guests are City residents and 19% either worked or spend leisure time in the City. Twenty-six percent heard about the event on social media, and 21% heard about it through print marketing. The next event will be February 16th featuring Reggae Sou jahs at the Amphitheater from 6 p.m. to 9 p.m. Food Truck Invasion and a mobile bar will be onsite. The next event will be held in April, but due to the Blarney Bash, no Music on the Rocks event will be held in March. C. The 4th Annual Blarney Bash This event will be held on Saturday March 17th from 4 p.m. to 9 p.m. on E. Ocean Avenue between Seacrest and NE 1St Street. Live music will be provided by Rogue Theory, Steeltown Religion and Celtic Mayhem and there will be a performance from the Erin Moore Academy of Irish Dance. Authentic Irish cuisine and other foods will be available as well as craft beer from local Boynton Beach breweries, and activities for children. Retail space is available. The Police will be available to assist with traffic and pedestrian crossings on Seacrest Boulevard. D. Marketing and Business Development Campaign There were no comments on this item. 8. Information Only A. Public Comment Log B. Public Relations Articles Associated with the BBCRA 9. Public Comments Susan Oyer, 140 SE 27th Way, spoke about an article, Plus Beaux Villages, which she left with the Board members. It detailed a French program that began in 1982. Other countries adopted the program, which resulted in a 10% to 50% increase in tourism for villages that participated in the beautification program. Boynton Beach was too large to qualify for the program, but she suggested adopting some of the criteria to make Boynton Beach a tourist destination. She encouraged the protection of historic and cultural assets, a strategy to preserve and promote the City, and having eco-friendly tourism. She suggested the following improvements: • More lights on major streets and key locations around the City; • White LED lights in front of the mail; 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 13, 2018 • Beautifying City Hall; • Rows of trees lit up and down Boynton Beach Boulevard; • Hanging flower baskets from the light poles for businesses on Ocean Avenue; • Over-sized pots with trees and flowers on Ocean Avenue from the Intracoastal to Seacrest Boulevard. She noted the City has received some bad press and thought the beautification program would help. No one else coming forward, public comments was closed. 10. Consent Agenda A. Financial Report Period Ending January 31, 2018 B. Monthly Purchase Orders C. Approval of CRA Board Meeting Minutes - January 18, 2018 11. Pulled Consent Agenda Items None. Motion Board Member Casello moved to approve the Consent Agenda. The motion was duly seconded and unanimously passed. 12. Public Hearing 13. Old Business A. Audited Financial Statements - FY 2016-2017, Fiscal Year Ended September 30, 2017 Mr. Simon explained there is an attachment for the financial statement for the 2016/2017 fiscal year which ended September 30th in the meeting materials and the audit is required by law. The firm of Sanson Kline Jacomino Tandoc& Gamarra audited the CRA to assure the statements are fairly represented and in compliance with applicable laws and the regulations and policies of the CRA. There were no internal control deficiencies for the ninth year, no non-compliance issues, and no audit adjustments. The CRA has a strong balance sheet, a net position of $23 million and a strong cash position and balance of working capital for ongoing project funding. This marked the ninth consecutive year in a row of no findings of any kind. 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 13, 2018 Richie Tandoc explained he issued an unmodified opinion which was a clean opinion for the year ending September 30, 2017. There were no findings, no sufficient deficiencies, no material non-compliance issues, nor any fraud or illegal acts that occurred by management or employees. Board member Casello thought it was impressive there was nine consecutive years of clean audits. He noted if all CRA's operated in the same way, Tallahassee would not be attacking CRAs. Board Member McCray commented he favored Mr. Tandoc making the presentation as the audit is significant. Motion Board Member McCray moved to approve. Board Member Romelus seconded the motion that unanimously passed. B. Consideration of the Site Plan for the Property located at 711 N. Federal Highway for South Florida Marine, d/b/a BZ Woods Properties, LLC Mr. Simon explained the item is part of the purchase and development agreement with Mr. and Mrs. Woods for South Florida Marine. He clarified under the agreement, the purchaser cannot submit the site plan without CRA approval. Once approval is given, the purchaser has 60 days to submit it. The site plan will go through the usual Planning and Development Board and City Commission approval process. He noted this is a precursory approval based on what was originally submitted. Chair Grant inquired if the Board was satisfied with the development timeline moving forward which he reviewed. He noted 500 Ocean had requested an extension and then a second extension. He queried if the reverter clause would fall into place and what remedies would be available to the CRA if the development timeline was not met. Attorney Duhy explained it was covered under Section 2, 20.1 Default after Closing. If the purchaser fails and is not in compliance with one of the provisions of the agreement, they will reconvey the property to the seller. Time is of the essence in performing the duties under the agreement, which covers the period of time during which they are processing their applications, but before the permit was received. Chair Grant sought to avoid the situation with 211 E. Ocean where the permit was denied and revisions were needed. He asked if 90 days was reasonable to submit revisions and learned it was. Motion Board Member McCray moved to approve. Board Member Romelus seconded the motion that unanimously passed. 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 13, 2018 C. Discussion and Consideration of Subordination of the CRA Homebuyer Assistance Program Mortgage between Lasendra Hoggins Wilson and the CRA Mr. Simon explained the item pertains to the grant agreement and promissory note and mortgage that the CRA Board will provide for a re-subordination, in the event Ms. Wilson refinances for a lower interest rate or other acceptable term. She was requesting approval to resubordinate only at this time. This would allow the new loan to stand in front of the CRA's grant and the Bank to have re-subordination approval prior to closing. If a signature is needed, Ms. Wilson agreed to provide the documents for signature. Board Member Casello asked how many other properties participated in the Homebuyer's Assistance Program (HAP). Mr. Simon responded in three to four years, there were 35 to 40 HAP recipients and some foreclosed due to the downturn in the market. He explained a small percentage of the recipients experienced foreclosure or returned to the CRA because there were issues such as those that surfaced regarding the Preserve. He advised the CRA no longer offers the program. Motion Board Member Romelus moved to approve. Board Member McCray seconded the motion that unanimously passed. D. Consideration of Pathways to Prosperity's Grant Application for the Boynton Beach CRA Non-Profit Organization Grant Program Thuy Shutt, Assistant CRA Director, explained on September 27th, the Board approved starting the program for the new fiscal year, specifically for economic and business development categories which support non-profits with projects and programs that create jobs in the CRA in furtherance of the CRA plan. The Notice of Funding was published both in print and digital formats. Flyers were created in three different languages and two pre-submission workshops were held: one in October and the other in November. Three non-profit organizations attended and staff reached out to other organizations in the CRA District. The three non-profits have programs and/or business locations within the CRA District. On December 1 st, Pathway to Prosperity (P2P) submitted for their Circles of the Palm Beach program. The application was included in the meeting materials and gave details of the application and the program, which was a more holistic approach to address poverty via financial literacy, education and training, increased educational skills, job training, and homeownership. Several results were indicated in their application where there were participants wanting to own their own businesses and some of those participants already had home-based businesses. The application indicated they would like to create a full-time Incubator Coordinator position with the grant funding. P2P sought 45%of the requested funds for the Coordinator's salary, which is about$25K. The request is within the 10% allotted for the program and the maximum allowed was $32K. Two funding evaluation committee meetings were held on December 19, 2017, and January 16, 2018, which included a presentation from the applicant to the Committee. The 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 13, 2018 Evaluation Committee members were Mr. Simon, Vicki Hill, Finance Manager and CRA Development Services Manager Theresa Utterback with Ms. Shutt serving as the administrator and contact person for the applicant. The Committee rated the applications based on the CRA Board approved rating matrix, which was enclosed in the meeting materials. The Committee ranked 20% for the organizational capacity, 20% for the need for the project or program, 10% for the project/program description, 20% for the project/program model, 10% evaluation plan and a 20% in sustainability. The P2P proposal received a score of 44%, below the required 75% required to be eligible for funding. Staff recommended the Board not fund the application based on the Committee's recommendation. Options were outlined as follows: approve the application as requested under the non-profit organization grant and have staff work with legal to bring back an agreement; direct staff to reissue the grant program funding program 30 day notice as there are more funds that will be available this fiscal year with the addition of an affordable/workforce housing component; or reissue the same with an economic development component. Kimberly Bush submitted the application for P2P and commented the business incubator portion of the program was new, but they have assisted many families in the community to purchase homes and start businesses. Many of the businesses are home-based businesses. In Delray, one woman purchased a food truck and another in Riviera Beach received assistance for cosmetology, but not in Boynton. The purpose of this grant was to have a Business Incubator Coordinator to work only with Boynton residents and she recommended the Board fund the application. They have been in the community for seven years and during that time, they had major successes. The goal was to provide the same with the incubator piece. Ms. Shutt recognized the program was a new program, but the grant and rubric was based on demonstrated experience with a similar model, which was why the proposal scored low. In addition to the previously mentioned options, the Board could fully or partly fund the application or proceed however the Board would direct. The proposal requested $25,000 and there is $125,000 allocated for the program this fiscal year. Staff will work with P2P, but as the first grant request, staff wanted to adhere with the criteria. Board Member McCray favored staff working with them and pointed out the application was only evaluated by staff. There was no representative from the HOB. He supported approving the grant and working with them. If there are no results, the grant does not have to be renewed. Ms. Shutt pointed out the grant is a reimbursement grant, and they need to provide documents and quarterly reports. Board Member Romelus ask about the Evaluation Committee and learned the three members were all staff. Ms. Shutt explained affordable workforce housing is a category the CRA could fund and staff had received inquiries in the past from affordable housing providers. There were two other categories under non-profit grants as well. She asked how the business incubator program was different from the Community Caring Center culinary incubator. Ms. Shutt explained the Community Caring Center has hands on training as part of their culinary program. The graduates from the Community Caring 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 13, 2018 Center incubator will eventually own their own business. The P2P program is geared more to job training and education about management and the skills to own a business and more specifically, home-based businesses. A difference between the two programs was one was initiating a program versus a program that has been in existence for many years. The point is to locate businesses in the commercial area and create jobs. Board Member Romelus did not think P2P should be compared to the Community Caring Center. Board Member Casello inquired how the guidelines and criteria were set and learned the Board had approved the criteria and guidelines to be used as a benchmark. He asked Mr. Simon if he would agree to approve it. Mr. Simon explained based on the criteria, it did not meet the threshold for funding and he would not approve it, but there were other options the Board could consider. Chair Grant asked if most of $25,000 would fund the Incubator Coordinator position and learned it would. The individual will have the expertise to identify licensing requirements for each City and know the guidelines to open a business, conduct a feasibility study, and help individuals to start that process. Individuals will learn how to develop a business plan that they can market to the CRA grants committee and to banks. Chair Grant thought it was similar to a pre-economic development grant where there is a retail location identified. He thought it was the thing they were trying to enhance in the HOB. Before leasing, the individual will need to have experience being a business owner. They would partner with industry experts that have the same type of business to walk them through the process. The mentor will guide them. Chair Grant asked if they were eligible for 10% of the program cost and learned they were. He suggested offering those graduates the remaining $7,000 of the $32,000 of eligible funds and wanted to increase the amount from $25,000 to $32,000 to assist with licensing expenses on a reimbursable basis. They are new businesses, but the mandate would be the home-based business had to be located in the CRA. Ms. Shutt suggested instead, the $7,000 be allocated for direct program costs as staff supported doing so. Chair Grant thought the program would benefit the HOB. Board Member Romelus agreed. Board Member Romelus asked in light of the Town Square project, if Ms. Bush was contemplating allowing apprentices to shadow tradesman as part of the development and learned she was. They recently had a meeting with Palm Beach County and the Circles Program National CEO discussed how to begin doing something with the business. She paired with Workforce Alliance to develop a plan. The program would get the individual ready. Workforce Alliance advised they have jobs but no qualified workers. They will institute a system to streamline mentors. It is a work in progress. The incubator piece for Circles is new, and the Regional Directors for Circles will be going for week-long training on this issue. Board Member McCray thought it was unethical for a Board Member to ask the Director how he would vote. Chair Grant responded it was fine. Board Member McCray explained he would not have asked because he works for the Board. 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 13, 2018 Board Member Casello commented he follows the expertise of the people they hire. He advised there will be other agencies that do not have incubator programs and explained the Board could eliminate the criteria and handle the grants on a case-by-case basis. Chair Grant explained this is the only applicant, so the Board could change the criteria for the next time going forward. He also suggested a member of the CRA Advisory Board could sit on the Evaluation Committee. Changes should be made on a new program and he was glad they had an applicant. He looked forward to seeing the results. Vice Chair Katz agreed with Board Member Casello. He did not like staff following the Board's direction and the Board later indicate doing so was incorrect. As to the quarterly report and documentation, he asked if there were measurable goals for job creation or economic activity beyond participants gaining financial literacy. Ms. Shutt explained the applicant had to provide a program model. The measurable outcomes were reviewed, but they were not as clear as it pertained to home-based businesses. The Committee did not think the Board has seen people come out and jobs created. It seemed broad and he would like it to be more defined to have tangible measurements. The application says the program can be re-evaluated, but the applicant was not as specific about how many jobs would likely be created. Vice Chair Katz asked about the metrics for assessment. Ms. Shutt explained the package leaned more towards individual knowledge of finance and management. There is a small portion that would want to further themselves and create a business. That is what they try to accomplish. Ms. Bush responded it was not based on national criteria and they could work with staff on it. In the one year for the grant period, they are spending 18 weeks in training. It is unknown how many people would open a business at the end of the year. In Delray out of a class of 15, there was one business that opened. Vice Chair Katz commented the criteria was based on past success. With a new avenue being pursued, it is difficult to measure the results. He supported either rewriting the criteria and if after one year there was evidence of success, he could support it, but not the way it was currently written. Ms.. Bush understood and asked if the Board wanted to support a Board program in the community that has been forgotten. She held a workshop and she was offering $40,000 to the HOB community, to programs that do not have audited financial statements or individuals who are providing services within the area. She wants to do businesses with the CRA and the request was small. She advised there will be positive outcomes. She did not include the names of individuals who have successful home based businesses. They are making it work Board Member Casello liked the program, but noted they are dealing with taxpayer dollars. He asked if the program could be refined so there would be benchmarks to measure success. Ms. Shutt replied, if funded, staff will have to work with Legal to draft a contract with the applicant to further define the goals. Ms. Bush will have to submit information and documents how many individuals went through the training program and who was hired to run the training program as they are the direct project costs. There is a 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 13, 2018 measurable contract they will have will be in place to ensure they are spending CRA dollars in accordance with CRA plans and goal. Board Member Romelus suggested, as they work with home based businesses, they use the Business Tax Receipts for newly created home based businesses as a measurable. Ms. Shutt explained there will be a quarterly report to the Board. Vice Chair Katz supported the request but commented it needs defined criteria. He was fine with staff fine tuning it as the contract will have to return to the Board. He felt it bordered on social services versus economic development and it should be tilted towards economic development. Board Member Romelus commented the program was created six months ago. The Board will also have to fine-tune the program. The purpose of the grant was to build and grow the community. Board Member McCray liked the home based businesses. Motion Board Member Romelus moved to approve P2P the full $32,000 that could be allocated for the grant. Board Member McCray seconded the motion. It was clarified the motion included the pending contract. The motion unanimously passed. Mr. Simon explained they will work with staff, Legal and the CRA Advisory Board before bringing back a request to re-release funding. Vice Chair Katz suggested the type of grants available be diverse. He did not want the same grant given to the same types of entities and thought uniqueness was a criteria. Ms. Shutt agreed. There are choices in the framework in the grant guidelines referencing clean energy and technology as other kinds of activities that could be accommodated for the economic development category. Board Member Romelus suggested other individuals serve on the Evaluation Committee. Chair Katz discouraged community members evaluating community organizations. Mr. Simon explained they could add one or two other individuals such as the Development Director or a CRA Advisory Board Member. No one from the non-profit be on Committee. E. Discussion Regarding the Continuation of the Social Media Outreach Program FY 17-18 Funding Mr. Simon advised the CRA funded $45,000 for two Social Media Outreach positons for six months, which will end March 30th. The Board could decide to continue or terminate the program. Mr. Simon expressed his belief the effort was a very beneficial program to the community and business, and to the CRA staff and CRA District related City activities as it could provide positive impacts. Given the experience with the amount of businesses they work with, and seeing significant increases, one position is all that is needed in the program. During the budget when the program was proposed, there were options for two positions for six months or one position for one year. They also learned the ideal scenario 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 13, 2018 would be to treat the position as an actual employee. The relationship between an independent contractor and the needs of the program warrants that relationship. Vice Chair Katz agreed. Based on what he has seen, a full-time position with benefits would be in the $60,000 range, and the benefit to the CRA is dramatic and visible. Without an added position CRA staff could not provide the service and in the private sector, providing this service is very expensive. He fully supported creation of one full-time position and the goal fit exactly what a CRA is supposed to do. Board Member Casello favored a full-time employee. Mr. Simon explained it would be the same exact program, but not the same title. As an employee, he would expect even more work than what is being done as senior staff could impose more requirements on an employee than a consultant. Board Member McCray noted all CRA employees are reviewed annually. He had no objection to having the one full-time position. Board Member Romelus asked if it would be more beneficial to have two part-timers rather than one full timer to increase visibility. Mr. Simon responded based on their analysis of the workload, one full-time employee would be better. Staff can bring the information back to the Board. Senior staff agreed two part time positions would not be as efficient as one person. Board Member Romelus asked if the CRA would hire one of the two consultants or if it would be open to the public and learned it would be open to the public. Chair Grant asked if the employee would be subject to overtime pay and learned they would ask they are not exempt positions; however, staff uses flex time. It is at the direction of the Executive Director's discretion. There is funding for overtime in the budget for situations when flex time could not be used. It is limited to a few events. The position will be advertised. Board Member McCray noted the consultants were already familiar with the CRA District and the CRA invested six months worth of training. He favored the position being offered to one of the consultants. Chair Grant agreed. Vice Chair Katz had no problems with internal candidates. He noted there would be no learning curve. Motion Board Member McCray moved to approve a full-time employee chosen by the Director between the two consultant's working part time if they want the job. Vice Chair Katz seconded the motion that unanimously passed. 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 13, 2018 F. Project Update 211 E. Ocean Avenue Mr. Simon explained the property is owned by Shovel Ready Properties LLC/Local Dev Co. LLC. The project has been in plan review since the end of December 2016. To-date, there was no submittal of plans per the City in their third round of review. Vice Chair Katz explained he had dissented to using the reverter clause the last time it was discussed. He felt at the time it was a coin flip if they would develop it or if they would benefit as a result of a rising market. He favored exercising the reverter clause. Attorney Duhy explained if the Board wants to invoke provisions of the contract to revert the property back to CRA ownership, Legal would issue a Notice of Default and Demand letter noticing them as being in default and demand they revert the property to CRA ownership by providing the CRA with a deed that is acceptable to the CRA. They would have 30 days to respond to it and provide the deed. By the next Board meeting, Attorney Duhy could provide what other legal options to take if they do not comply, but there is little risk in the CRA making the demand letter. Vice Chair Katz asked if those were their two legal options: comply or come in with site plans. Attorney Duhy explained they have to resolve the default. It has taken them sufficiently long and it would be legitimate to say it cannot be cured. They could just turn the deed back over which would resolve the matter simply. This meeting would just address the Demand letter with 30 days for them to provide the deed. Motion Vice Chair Katz moved to approve and Board Member McCray seconded the motion. Board Member Casello was concerned the developer has not done anything for a year, and there has been no response. He questioned what happens if they got the letter and made a small gesture by submitting a plan and the whole thing starts all over. Attorney Duhy responded that is at the Board's discretion depending on what steps are taken. He asked what safeguards the CRA had. Attorney Duhy explained the Board could find the action insufficient to cure the default. It would not eliminate the demand to return the property. Legal will issue the letter and return next month. There was discussion the 30 days is legal notice, which would be after the next meeting. Chair Grant inquired if the developer returns the property, if the CRA would have to reimburse the developer for the costs they expended for architects, surveys or appraisals and others who worked on the project. Attorney Duhy explained there was nothing in the agreement that would speak to that. Chair Grant explained the developer had incurred some expenses for the project and some drawings were submitted. He thought the CRA would either have to negotiate with them for the purchase back or go to court. Attorney Duhy agreed. Mr. Simon suggested holding a special meeting prior to a City Commission meeting to allow staff to report back on the issue and advise if a response was received, 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 13, 2018 no comment or if there is an action the Board could take prior to the April CRA meeting. The only date is the March 20th meeting. Chair Grant requested a vote on the motion to send a demand letter. Vote The motion unanimously passed. Chair Grant requested a motion for the special meeting on March 20th before the City Commission meeting at 6 p.m. to get an update. Motion Board Member Casello moved to approve a special meeting. Board Member McCray seconded the motion that unanimously passed. G. Project Update for 480 E. Ocean Avenue Chair Grant noted the developer received a temporary Certificate of Occupancy, which was extended to March 5, 2018. The CRA extension was for a Certificate of Completion, so the developer is technically in default. Chair Grant asked if the Board would make a decision how to proceed after the Certificate of Occupancy runs out in March or if they should notify them they are in default now. Attorney Duhy explained she issued, on the Board's behalf, letters to the property owner about non-compliance. The Board could issue a formal notice of default of the agreement by the March date. The Board would be in the same position as with the Magnuson House. Chair Grant felt a special meeting was not needed, but the Board should send a letter indicating if there is no Business Tax Receipt for the location, they are in default. They did get the Temporary Certificate of Occupancy, but if they are continuing to get extensions, the Board wants either the Business Tax Receipt or completion of the Certificate of Occupancy within 30 days. Board Member McCray agreed Mr. Simon explained in the attachment, staff had recommended a letter be sent from legal counsel, which was sent on February 61h as a reminder of the obligations of the property owner which was received on November 30th. They sent a letter to the owner's attorney requesting an update. If the Board wants to send another letter that could be more direct, the Board could. There has been no response to the February 6th letter. Chair Grant requested a motion to send a demand letter for the Business Tax Receipt for the location or a Notice of Default within 30 days, even though have a certificate of occupancy as it is not per the agreement. 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 13, 2018 Mr. Simon advised there has been no contact with him or the City, but the contractor reached out to the City and the City gave an extension three times. The City was working hard to get them to address minor items. They are not insurmountable improvements, but they are eligible to operate. Attorney Duhy suggested asking them in a letter to attend the April meeting, failing their completion to provide what the Board was asking for. Motion Vice Chair Katz moved to have Attorney Duhy issue the formal default letter. Board Member McCray seconded the motion that unanimously passed. This item will come back in April unless they have the Certificate of Occupancy. 14. New Business A. Consideration of Purchase and Sale Agreement with Larann LLC for the Property located at 201 NE 9th Avenue Chair Grant discussed this issue with Mr. Simon and commented the issue is there is only a 10-day inspection period, which does not give enough time for the Board to see the inspection report and determine if the Board wants to purchase the property without the ability to get their deposit back. He asked if the Board wanted to approve the acquisition with 30 days so they could review the inspection report before purchasing the property. Mr. Simon explained the home was in the HOB and the Board could indicate they would have a special meeting if something egregious was found. Mr. Simon explained the contract was presented to owner with the standard form with a 30-day feasibility period. The amended contract came back shortened the period to 10 days. There is a clean deed. The structure would be demolished, but it is currently occupied. There is an active Business Tax Receipt, but if the CRA, as the new landlord saw there were questionable living conditions or the tenant had a concern that was not addressed by the previous landlord, the CRA would have to keep the structure to code. One lease ends in May and the other ends in August. There are no active code violations. Board Member McCray favored an inspection. Motion Vice Chair Katz moved to approve pending the owner agreeing to the original specifications of 30 days. Chair Grant suggested the Board could agree to use the Executive Director's discretion after he reviews the inspection report. He commented there is a signed contract and if they miss this opportunity because they ask for 30 days, he could change the price. 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 13, 2018 Motion Vice Chair Katz modified his motion to purchase the property with the ability of the Executive Director to withdraw after viewing the inspection report. Board Member Casello seconded the motion that unanimously passed. Mr. Simon will review the inspection report and make the decision on behalf of the Board to purchase or not. B. Consideration of Approval of Costa Center, LLC's Performance Audit for Year Ending December 31, 2017 for the Casa Costa Project Mr. Simon explained this item is an annual item due to the DIFA on the Casa Costa project, formerly known as the Promenade. The agreement requires an audit and performance audit of the terms required by the agreement. They submitted the audit for the year ending September 30, 2017. Staff has reviewed it and the audit is in compliance with the agreement requiring 10% of retail space (1,930 square feet) of the total retail square footage to be offered at half the average rental rate ($12.50 per square foot). A motion was needed for CRA staff to process the request for payment. Board Member Casello commented this was the first time progress was made. Motion Vice Chair Katz moved to approve, Board Member McCray seconded the motion that unanimously passed. C. Consideration of Interlocal Agreement for Technical Support Services with the City of Boynton Beach Mr. Simon explained this Interlocal Agreement is for the City to provide Information Technology services for three years with a 3% yearly increase. It was previously in place, but it had expired. A new Interlocal Agreement was attached and reviewed by both the CRA and City Legal staff. Motion Board Member McCray moved to approve. Board Member Casello seconded the motion that unanimously passed. D. Consideration and Discussion of Outsourcing Legal Services for Human Resources Mr. Simon explained the CRA is looking for the opportunity to save money on legal expenses if there is a human resource issue outside the review and parameters of 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 13, 2018 executive staff. Lewis Longman and Walker solicited proposals from qualified labor law firms and reviewed them. One proposal staff recommended was from Christine Hanley. Attorney Duhy explained this idea came about as a best practice some time ago to have an employment attorney on retainer who does not work as the Board's Attorney and is not Mr. Simon as an extra level of protection if a complaint arose to the level requiring an outside attorney be used. There is no retainer fee to bring on the attorney as the attorney would work on an hourly and as needed basis. It is a best practice to have and it would avoid any appearance of impropriety in the handling of a complaint by someone who works closely with the Board on a day-to-day basis. Board Member Casello asked how a complaint would currently be handled. Mr. Simon explained other than best practices in management from Mr. Simon or Ms. Shutt, there is no other avenue to submit a grievance beyond his or Ms. Shutt's review. There is no assistance from the City's Human Resource Department. Staff worked diligently to address this issue as time changed. He hoped the Board would approve the request and clarified there is no complaint or issue, but they want to have something in place if an issue should arise. Attorney Duhy explained if a complaint arose, the employee would still be brought in to Mr. Simon or Attorney Duhy who would then, as a matter of process, forward it to the attorney. Board Member Casello asked how a complaint against Mr. Simon would be handled and learned they would identify a second person to be notified which was Attorney Duhy and she would forward it to the attorney. Board Member McCray asked if the City's Human Resources Department does anything with the CRA and learned the CRA has an ILA for health benefits and payroll management. The City's Human Resource Department assists with job postings, processing of resumes and drug testing. From a complaint process, it is not part of the ILA and in the past, that part of the ILA was not helpful for potential conflicts of interest. Board Member McCray favored the request as long as there was an ILA. Motion Board Member McCray moved to approve. Vice Chair Katz seconded the motion. A tentative hourly rate was included in the meeting backup, which would be paid if needed. Staff would also notify the Board of any incidents that would require using the attorney. Chair Grant noted the CRA has policies for discrimination and harassment. Mr. Simon explained there would be revisions to the employee manual as revised with outside counsel and the process to be followed if a complaint is not resolved and how to go to the next level. The last time the employee manual was updated was for the credit card policy in 2017. The last major overhaul was in 2011 or 2012. Board Member McCray requested a copy. 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 13, 2018 Vote The motion unanimously passed. E. Consideration of Letter of Interest/Intent for the purchase of property located at 115 N. Federal Highway. Mr. Simon advised this item was based on discussions held by CRA staff with representatives of the owners of the property at 115 N. Federal Highway, the United Congregational Church of Christ on the north side of the property at the corner of NE 4th Street and 1St Avenue. The property is in the CRA plan and within the CRA parking analysis and the City and CRA parking plans as it relates to Transit Oriented Development. It is in the Central Business District and has a mixed-use land designation. Staff is ordering an appraisal and has been discussing the owner's opinion of value, which is not statutorily equivalent with an appraisal, and the CRA must operate within the Statute for acquisition. There are many uses for the property and it is an unusual opportunity for the CRA. Options for the Board to consider were included such as a letter of Interest and bringing back any response at the March meeting Vice Chair Katz wanted Mr. Simon to engage and investigate the acquisition as it presents a lot of opportunity. If the CRA does not purchase the property, someone else will and they will approach the CRA seeking benefits for development. The CRA may as well be the property owner. Then, they will have complete control over development. He favored dialogues to ascertain cost and other details. Mr. Simon commented the Church decided to evaluate their holding and they are seriously exploring a sale. Board Member Casello asked if the Church was discussing a sale with any other potential buyers. Mr. Simon replied not to his knowledge. Church staff has not shared any other offers or potential interest. Board Member McCray favored acquisition and asked if there were funds to purchase the land. He supported purchasing the property because others would and they will be held hostage for development just as the same occurred on MLK Jr. Boulevard. Susan Oyer, 147 SE 27th Way explained her family approached the Church for years to buy half of the parking lot as they only have eight parking spaces and they need 43 to accommodate the businesses they own on Ocean Avenue. The Church did not want to sell piece meal. She explained there was another offer that was not accepted and if the CRA acquired the property and wanted to sell them 44 to 45 spaces, they would be happy to buy them. Chair Grant explained this parcel was part of the Boynton Beach Boulevard, Ocean Avenue and Federal Highway node. He thought it was a good opportunity. 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 13, 2018 Motion Upon motion made and seconded by Board Member McCray, there was unanimous consensus to proceed. F. Potential RFP for the MLK Corridor Vice Chair Katz wanted discussion on the MLK Corridor noting no agreement was reached to invest funds to build commercial development along the MLK Corridor at the last meeting. He asked if the Board could draft a few investment concepts offering financial incentives, so if the Board issued an RFP to build commercial property, it would receive a response. He did not want the potential to exist to build commercial buildings and have them stall because there was no support for a full investment from the CRA. Ocean Breeze had indicated if they offered incentives, someone may want to negotiate. Vice Chair Katz sought direction from the Board and felt it was an opportune time to do so and this was an investment in the Heart of Boynton. Chair Grant favored the CRA Advisory Board reviewing the item and holding a community meeting to receive input on what residents want on the Corridor. He also requested they include 1110 N. Federal Highway as well. Board Member McCray liked the community input meeting, but pointed out the CRA held a charrette over 26 years ago. If a community meeting is held, the CRA should be ready to deliver. Board Member Casello commented the CRA is using tax dollars and did not want to move forward just because residents want something. He did not want to spend $1 million and hope development occurs. He suggested talking to professionals that are in the building trade. He has heard business suggestions ranging from food markets to pool halls. If the CRA is unsuccessful, it would set MLK back 20 years. Board Member McCray favored a RFP, but wanted to study the plan. He wanted development right the first time. Board Member Casello agreed. Mr. Simon agreed to put something in place for the March CRA Advisory Board meeting and noted developers would have two opportunities to speak. Mr. Simon explained the CRA Advisory Board assignment is using the meeting to gather public input and have them provide additional comments. The second component is to formulate staff's recommendation for an RFP or gather the Advisory Board's recommendation for the RFP in March. Chair Grant commented they wanted a basis of what they would discuss for the RFP. Vice Chair Katz agreed. They should define basic parameters. He asked if there was consensus the development would be a commercial project. Chair Grant commented the land has mixed uses and he liked commercial buildings with residential above. 18 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 13, 2018 Board Member Romelus asked if the Board recently issue an RFP for MILK. Mr. Simon explained not since the failed response from NuRock. Board Member McCray pointed out one person wanted a pool hall on MILK Jr. Boulevard, and cautioned if one is opened, the Board was inviting problems. Vice Chair Katz agreed the focus of the discussion should be about commercial or retail, not very specific businesses. The area has to walk before it runs and the CRA cannot dictate what businesses will locate to the area. Board Member McCray suggested sticking with a mixed-use RFP and bring it back to the Board. Information will be presented at the March meeting regarding the MILK corridor to fine tune points in the RFP for the April CRA Advisory Board Meeting. Board Member Romelus requested including language in the RFP indicating there will be a community partnership and working with local business to incorporate them into what is newly constructed. She wanted to ensure the CRA encourages prosperity and growth along MILK and allowing for businesses currently there to be viable. Mr. Simon indicated there was a request from Ms. Hoggins to revisit item XIII C for comments from her. Lashendra Hoggins Wilson, 508 NW 12th Avenue, explained she was not present for the approval of the item earlier in the meeting, but she wanted clarification on what was approved. It was explained the subordination was approved so she now had the ability to refinance. She asked if the approval was for remodeling or cash out to pay down debt because there are specifics in the contract. Chair Grant explained the Board did not have any specifics regarding the subordination. The CRAs position will be behind the new loan that could be used for whatever funds she could get from the equity she had. Ms. Wilson explained there was an offer regarding the possibility of a write off or buy out of the CRA contract. She was unsure it was still under discussion. Chair Grant explained if Ms. Wilson wanted to make an offer, the Board would listen. She was still speaking with the lender and they questioned what the amount was. Chair Grant recalled the CRA was entitled to 50% of the equity, up to $47,000. He asked if the Board was willing to accept a sum less than $47,000 so she could own her home free and clear with one mortgage instead of two. Ms. Wilson was certain the bank would not give her the $47,000. Chair Grant explained the Board would review any reasonable offer. 15. CRA Advisory Board A. Approval of CRA Advisory Board Meeting Minutes - January 4, 2018 B. Pending Assignments 1. None C. Reports on Pending Assignments 1. None 19 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 13, 2018 D. New Assignments 1. None 16. Future Agenda Items A. Boynton Beach Boulevard Streetscape Improvement Project Update B. Consideration of Purchase of 521 N. Federal Highway C. Discussion Regarding Redevelopment Options for CRA Owned Parcels within the MLK, Jr. Boulevard Corridor D. Consideration for Revision to the CRA Procurement Policy Including a Local Business Preference Under a Competitive Process E. Consideration of Parameters for an RFP/RFQ for the CRA Owned Property Located at NE 4th and NE 5th Avenues, a/k/a the Cottage District (Tabled 11/14/17) F. Solid Waste Authority Grant Results 17. Adjournment There being no further business to discuss, Board Member McCray moved to adjourn. Board Member Romelus seconded the motion that unanimously passed. The meeting was adjourned at 8:39 p.m. Catherine Cherry " Minutes Specialist 20