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Minutes 03-13-18 Jt CRA mtgMINUTES OF THE SPECIAL JOINT CITY COMMISSION AND COMMUNINTY REDEVELOPMENT AGENCY MEETING HELD ON TUESDAY MARCH 13, 2018, AT 4:00 P.M. IN LIBRARY PROGRAM ROOM, 208 S. SEACREST BOULEVARD, BOYNTON BEACH, FLORIDA PRESENT: Steven B. Grant, Mayor Justin Katz, Vice Mayor Mack McCray, Commissioner Christina Romelus, Commissioner Joe Casello, Commissioner CITY COMMISSION MEETING 1. OPENINGS A. Call to Order - Mayor Steven B. Grant Mayor Grant called the meeting to order at 4:01 p.m. Invocation Commissioner McCray gave the invocation. Lori LaVerriere, City Manager James Cherof, City Attorney Judith A. Pyle, City Clerk Pledge of Allegiance to the Flag led by Commissioner McCray Roll Call Judith A. Pyle, City Clerk, called the roll. A quorum was present. Agenda Approval: 1. Additions, Deletions, Corrections 2. Adoption Mayor Grant asked for a motion to approve the agenda. Motion Commissioner Romelus moved to approve. Commissioner McCray seconded the motion. Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Vote The motion unanimously passed. Colin Groff, Assistant City Manager, provided an overview of Town Square phase II project. The proposed site was 16.5 acres plus 5.5 acre at the High Ridge property. The project is a public/private partnership between the City of Boynton Beach and E2L Real Estate Solutions, LLC and includes the renovation of a historic Boynton Beach High School into a cultural center, residential and retail spaces, a hotel, public spaces, a garage, Fire Station and a new City Hall. The Schoolhouse Museum and Children's Learning Center will remain. Mr. Groff explained Phase I, was approved by the Boynton Beach City Commission on June 12, 2017, which includes interior and roof rehabilitation of the vacant historic Boynton Beach High School. The site will include full underground utilities, telecommunication infrastructure, new roadways, hardscape, landscape, lighting, and pedestrian access. The total cost was approximately $15M. The historic High School was being retro fitted into the Boynton Beach Cultural Center. The building square footage is estimated to be 28,402. The estimated cost associated with the cultural center was $11 M. City Hall /Library will have a combined square footage of 110,000, with half Library and City functions on the first floor, the second floor Library, City Operations on the third Floor and the Fourth Floor will have City Executives and Administrative services an estimated cost of $26.9M. Fire Station #1 will have a square footage of 11,235, with 3 bays, the estimated cost of $4.8M. The Police Station located at the High Ridge site will have a square footage of 58,234 at an estimated cost of $19.2M. Mr. Groff stated the City will supply central energy to the new Town Square and new buildings. This was being set up as a utility; this would be paid for by rates. The District Energy Plant was a 2,700 ton plant. He indicated this was a green friendly plan with an estimated cost $11.5M. He explained the parking garages would be a shared with the private developer. The south garage will have 364 City parking spaces; the north garage will have 101 City parking spaces, with an estimated cost of $10.3M. Mr. Groff stated the current completion dates for the construction are: Mobilization July, 2018, Demolition, High School renovation completed December 2018. District Energy Plan February 2019, Garage B South July 2019, Garage A North October 2019, Fire Station #1 July 2019, City Hall/Library September 2019, Police December 2019, south block residential February 2020, hotel and parking April 2020, north block residential and commercial April 2020, Ocean Avenue residential and commercial area December 2020. 2 Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Commissioner McCray requested the square feet of the current City of Boynton Beach Library. Mr. Groff replied the current total was 58,000 square feet. The new Library would have approximately 47,000 square feet. Commissioner McCray stated the library was going to be 10,000 square feet less then what they currently have available. Commissioner McCray inquired about the parking spaces in the garage. How much is the parking garage costing the developer? Mr. Groff responded there were two parking garages with more than 1900 spaces; the City has approximately 465 spaces. Mr. Groff stated the cost of the garage was $30M to the developer. Commissioner Casello asked how many bays were being allotted for the fire station. Mr. Groff responded there were currently 3 bays in the design. Commissioner Casello asked if this was enough to take the City of Boynton Beach into the 21St century. Mr. Groff responded he had spoken with the Fire Chief regarding the bays; this was what was needed for the next 100 years. Commissioner Casello asked if the building would be built to a Category 5 storm. Mr. Groff replied everything was being designed to 175 miles per hour winds, which is a Category 4 storm. He explained this does not mean it could not stand up to a Category 5 storm. Commissioner Casello asked if Fire Station 5 was a category 5. Mr. Groff responded it was designed for a Category 5. Commissioner Casello inquired why they would design the downtown town area at a Category 4. Mr. Groff replied staff looked at the cost to make the building a Category 5. He explained if the City had a major storm everyone would be evacuated east of I- 95. Mr. Groff indicated Fire Station #5 was the Emergency Operations center. Stated he would have staff calculate the numbers to build for a Category 5 building. Commissioner Casello stated Mr. Groff has failed to mention fuel cells when speaking about the Chilled Water Plant. Mr. Groff stated this was older technology and reliable technology. He explained right now it is based on the chilled water; the fuel cells would create hot water. If the City decides to use fuel cells they could move hot water to these buildings as well. 3 Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Commissioner McCray since the Fire Department was a Category 5; he asked if the Police Department will have the same designation. Mr. Groff indicated this was being designed to 175 wind miles. This was classified a category 4 hurricane. Mayor Grant stated he needed to correct Mr. Groff, 150 winds was a Category 5 hurricane Mr. Groff stated the City was designing to a Category 4 hurricane wind load. He stated staff can bring numbers back to the Commission regarding the cost to design a Category 5 versus a Category 4. Mayor Grant explained how hurricanes were measured. He indicated a category 4 should be fine. Mayor Grant stated he was concerned that the City of Boynton Beach has some large buildings; asked if these building could be used to house the City residents who are unable to leave. Mr. Groff responded that was a policy decision. All buildings are designed with lifesaving equipment and generators. Commissioner McCray requested the cost of a Category 5 brought back to the Commission for the Police Department on High Ridge Road. Tim Howard, Assistant City Manager and Finance Director, provided a summary of other costs for the City Hall/Library, building demolitions, site infrastructure, police building, fire station #1, Bond/CFP costs, Developer Costs, Land Lease Payment, and contingency. The Bond Issue needed to be in the amount of $76,117,844. Mr. Howard stated the total cost would be $118.3M for the Town Square project. Commissioner Casello noted there was a discussion regarding the possibility of leasing furniture. Mr. Howard indicated $3M has been allocated to purchase or lease furniture. Mr. Howard stated the CFP will issue a bond not to exceed $78M, the issuance would be June or July 2018, pending the approval and the final maturity would be June or July 2044. This date coincides with the Sunset Date set by the CRA. Based on the maximum amount of bond, the City annual lease payment to CFP will be $4.4M - $5.1 M for the next 25 years. Commissioner McCray inquired as to the total bond debt service for the City. Mr. Howard responded the City has a Public Service tax debt outstanding lease payment of $2.2lVi which will be paid off 2026/27. Ci Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Michael Simon, Executive Director CRA, indicated the current debt service expires in 2026/27 and the current payment per year was $2.3M. Commissioner McCray said after 2026 the debt service would be retired, and the CRA will be able to pick up the $4M. The $3M was for the site utilities and the cost of the District Energy plant of $10.4M. The City will issue a Utility Bond. The Boynton Beach Utilities Capital Improvement Project budget includes funding to upgrade and replace existing utilities within the Town Square boundaries. The City will establish a District Energy Utility to construct and maintain a chilled water plant to supply chilled water for air conditioning for new structures along with other private development in the area. A utility loan will be used for financing and repairs through rates. As other areas in the City redevelop, the City will have the opportunity to expand the new utility. Mr. Howard explained this will not come out of the General Fund or the CRA funding. Commissioner McCray inquired as to the anticipated revenue from user fees. Mr. Groff replied staff has a financial model for the debt service payment. The City would be able to offer the rates about 5% less than what consumers currently pay for electric. The overall numbers per year was not available. Mr. Groff stated the fees cover everything, plus a little more coming back to the City. Commissioner McCray stated he wanted to know the income. He needs those figures. He wants to make sure what he was voting on. Mayor Grant stated most of this was for the Town Square project. Inquired as to what percentage of the new District Energy plant would be used by Town Square. Mr. Groff indicated right now the City was designing a 2700 ton plant, for the government buildings and would be about 1/3. Mayor Grant asked if Town Square would be able to fund the District Energy Plant. Mr. Groff replied the financial models are based on the 16.5 acres only. Mayor Grant asked when the final residential and commercial buildings are completed if the City would be in the black. Mr. Groff stated the City will build in phases. As an example the Villages of Boynton Beach has approached the City regarding connecting to the Chilled Water Plant. The City will only build as we need, so that the plant will pay for itself. Mayor Grant asked if the Plant would be able to expand in the future. Mr. Groff confirmed. 5 Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Mr. Howard stated there was an item on the agenda to enter into an agreement with a consultant to pursue New Market Tax Credits. He explained this was a Federal program. They are estimating the City would be getting $2.5M worth of federal money, which would offset costs. In addition to the new market tax credits, there are leverage loans. The City was looking at pursuing one of those loans. The Old High School was not eligible for non -tax exempt bonds. The City of Boynton Beach needed to find funding to pay for this project. There are no prepayment penalties. In the City CIP for next year, there were a number of projects that were earmarked to be done. He suggested using the $3M from the surtax funds for the High School as well as $1.6M from the CRA. Mr. Howard stated part of the funding from the CRA the City was estimating a bond for about $84M, the maximum bond $78M the City would issue. He indicated there could be some funds available to pay off the high school by 2019 Commissioner McCray asked if using the surtax funds, would impede on the sidewalks and paving the City has slated to be repaired. Mr. Howard stated the City currently has $2M programed for pavements. It would leave about $1.51VI for next year. Commissioner McCray indicated he does not see any movement. He asked if minority companies are being brought in. Mr. Howard said the City was in the process of doing larger projects. There are bids for paving and painting. They needed to restructure those bids to encourage local participation. He stated this was taking longer than anticipated. Mr. Howard continued regarding the parking spaces. He said instead of building the garages, staff decided to pay for the cost of the parking spaces within the garage, which cost comes to $10.2M. Mr. Howard explained the land where the garage sits has a value to the developer. The City would use that revenue to pay for the parking spaces. Commissioner McCray asked how many years the City will pay for the parking spaces. Mr. Howard stated the City has a license agreement for 50 years. Commissioner McCray asked if the City will pay a maintenance fee for 50 years, asked about the price for the maintenance for the parking spaces. Mr. Howard indicated that would be $190,000 per year. This was an operating cost. Commissioner Casello asked how much was the City paying per space? Mr. Howard replied it would be $22,000 to $24,000 per space. N Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Commissioner Casello asked if the City Commission was going to charge for those spaces for public use. Mr. Groff advised that was a policy decision. Ms. LaVerriere stated no revenue was factored into the costs. Mr. Howard added cities which have a parking garages do not initially charge for the parking. Mayor Grant questioned if the City would have the bottom floor spaces, so that it would be more convenient for residents and staff. He also asked if appraisals were used to determine the land value. Mr. Groff stated staff used multiple appraisals from various years. This was a negotiated appraisal rate of $1.25M per acre. Mayor Grant stated this was an average cost. Mr. Howard continued to provide cost and funding information. There were estimated costs of $3M for the initial move to the temporary space, the temporary lease space, and the costs for the move from the temporary space. This was an estimated of $6.2M. Indicated part of the 16 acres includes land for a hotel. This portion would be sold to the developer at $1.75M. All contractors are required to pay permit fees on the public building, at an estimate of $1.5M. Commissioner Romelus inquired if the City was we going to receive art fee funds. Mr. Howard responded yes, this was charged to all the projects. Commissioner Casello said the temporary lease was based on a 24 month period; the City has not negotiated any leases. Mr. Howard indicated this was based on the estimated numbers which Mr. Groff has received from the Broker. Indicated nothing has been finalized as of yet. Commissioner Casello asked where the City will get the additional money if it takes additional time. Mr. Howard stated the leases would have an extension on the outside possibility an extension was needed; the cost will be in the general operating budget. Mr. Howard stated the leases are for three separate buildings. It would be very important to monitor the project. Commissioner Casello asked if there were any benchmarks within the contracts. Mr. Groff stated there are benchmarks built in. The schedule right now was 18 months; we built in an extra 6 months. Commissioner McCray indicated he believed 24 months was not enough time to build Town Square. 7 Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Mayor Grant said the City has everything in place right now. The potential funding number for the General Fund was an estimate. The City was spending more on City Hall and Police Department trying to repair than what the lease payments are going to be. The major concerns were the residents were going to a different place for City Hall. Mayor Grant said as we all know when you wait to do something; it was a good chance that it would not get done. Commissioner McCray stated he must disagree with Mayor Grant. The City has money in the CIP budget. Commissioner McCray indicated when the Library was constructed he was told the Library should last 20 or 30 years. He indicated this was a tough pill to swallow. Commissioner McCray inquired when was the last time anything was repaired in City Hall or the Police Department. Mr. Howard responded he did not have an answer. Mr. Groff stated he wanted to answer the question about the District Energy Plant. Over the 48 -month period of startup, getting customer connected, the model shows revenue of $2.5M with an expenditure of $2.1 M. It was about $400,000 additional funds at the reduced rate. Commissioner Romelus asked for clarification about the time period. Mr. Groff stated that was about a 48 month period, it takes about 18 months. Commissioner Romelus indicated those first 3 years the City was not in red. Mr. Groff stated there will be 18 months when the City was operating in the red, and then the next 18 months the City will be operating in the black. Commissioner Romelus asked if the $190,000 was already budgeted within the future budget for the lease payment. Mr. Howard stated this was not budgeted. Once the parking garages come online, about 18 months, this would be within the next two fiscal years. Commissioner Romelus asked if that money was already considered in the future budget. Mr. Howard advised it would be in the next two fiscal years. Mr. Groff provided an overview of the contracts. Indicated the City has contracted with 3 providers. CFP Boynton Beach Town Square, LLC. This company was responsible for the City Hall, Fire Station #1, Police Headquarters, Parks and Open Space, Utilities and Infrastructure and associated site and road work. E21- Real Estate Solutions, LLC responsible for the High School redevelopment, the District Energy Plant as well as the design and construction management services. JKM Development was responsible for the parking spaces of which 465 spaces were for City use. Payment was from the land sales proceeds. Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Commissioner McCray asked who would be responsible within the City to oversee the contractors. Mr. Groff stated the executive team will be responsible for contractor management. There would be a project team, made-up of a project manager, engineers, accountants and inspectors. There will be office space on site, making sure all the benchmarks are met on a daily basis Commissioner McCray asked who was on the team. Ms. LaVerriere stated CFP would have a project manager, the Master Developer E2L would provide a project manager, Mr. Groff would be on the team, Andrew Mack will be assisting with the construction, and the Billing Department will be involved from an inspection standpoint. Mr. Groff indicated the City will be hiring some contract employees. He indicated Andrew Mack was moving to Public Works Director, he will be the lead. We have several people within the City of Boynton Beach who have the experience to manage these large projects. Commissioner McCray asked since the City was spending CRA funds, could we have someone from the CRA on the team. Mr. Groff indicated this will be done, Michael Simon, Executive Director will be involved. Commissioner Casello asked if the City could get Jeff Livergood to lead the team. Mr. Groff stated Mr. Livergood was leaving. Commissioner Casello asked if the City could entice him to remain Commissioner Romelus asked if the City was exempt from paying the Art fee. Mr. Groff indicated the City must pay the fee as well. Mr. Groff stated this was what staff was recommending for the City Commission tonight: Conduct a public hearing which acknowledges the issuance of a Capital Improvement Bond not to exceed $78.M. Required Action by the CRA Board and City Commission: Approve an inter -local agreement between the CRA and City to fund certain portions of the Town Square Boynton Beach project. Phase 2 agreements with E2L Real Estates Solutions, LLC Redevelopment of the High School, and Construction of the District Energy System and design and construction management services. CFP Boynton Beach Town Square, LLC will provide the development of City Hall/Library, Fire Station #1, Police Headquarters Building, all open space, parks and associated site and road work. 9 Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Resolution R18-044, the Master Development Agreement, Ground Lease Agreement, Facilities Lease Agreement to approve as to form. The Atwater Infrastructure, Resolution 18-045 for the new markets tax credit consulting agreement, funding agreement for the High School Construction. Lastly the private developer, JKM, Resolution R18-046, the purchase and sales agreements, parking license agreements, development agreements and an option agreement. He stated the lawyers will finalize the agreements. Commissioner Casello asked as to the location of the Utility Plant. Mr. Groff indicated the Utility Plant was located within the Town Square project adjacent to the north garage. Commissioner Casello said this was next to the Old High School. Mr. Groff stated this was the north side of the High School; it was built into the garage. Mr. Groff stated this could change as the City of Boynton Beach gets into the final design. In the next 60 days all of that design work will occur if the Commission approves the project to move forward. Ms. LaVerriere indicated the City was looking at some offsite properties potentially on 4th Street. Mr. Groff stated if the City could find an offsite parcel this would reduce the cost. He indicated staff wanted to do what was most cost effective. Commissioner Romelus asked when the City factors in donors and sponsorship opportunities. Mr. Howard indicated that topic was not a guarantee. Staff will come back to the Commission with additional information. He stated until they began taking down buildings, we will be in a better place to market Town Square. The City would move forward with the New Market Credit and with either naming rights or sponsorships. The City will be at a better place to market once buildings are up. Commissioner Romelus asked if the City factored in bike or ride sharing. Mr. Groff stated there are several drop offs for Uber and Lyft. Commissioner Romelus asked if the drop offs were covered. Mr. Groff explained staff was trying to make sure the stops were covered. Mayor Grant explained about the TEFRA hearing, Tax Equity and Fiscal Responsibility Act of 1982 is the common acronym used for a set of consolidated examination, processing, and judicial procedures which determine the tax treatment of partnership items at the partnership level for partnerships and limited liability companies (LLCs) that file as partnerships. The TEFRA is to allow interested persons an opportunity to comment on whether to issue the bonds to pay for the Town Square Project. 10 Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Attorney Cherof stated this was the public's opportunity to comment on the PowerPoint presentation. Mayor Grant stated this was for the entire Town Square project. Mayor Grant opened up the topic to Public Audience. Harry Woodward, 685 NE 15th Place, asked if the schedule being presented was the most likely schedule. Mr. Groff stated this was the schedule the contractors have presented to the City. This was the most likely schedule. Mr. Woodward inquired if there was a place to look at the contractor's scope of work. Mr. Groff responded the City will create a website for the public to view. Mr. Woodward asked how are change orders approved. Mr. Groff replied these are design/build contracts. The only change orders are ones which are initiated by the City Commission. Susan Ross, Schoolhouse Children's Museum, asked if the Civic Center was going to be torn down at the same time as the other structures. Mr. Groff responded yes, all of the demolition will begin July 1, 2018. Ms. Ross asked what will happen to the children who use the Library for tutoring and other afterschool functions. Asked if there was anything in place to accommodate those children. Mr. Groff explained the City was looking to lease the building across the street from City Hall. He stated AmeriCorps would be in that building as well. The children can walk safely to the building. Ms. Ross said as long as the children have a place to go. Audrey Gerger, 331 NW 15t Street, indicated she has a historical house and asked for clarification. Mr. Groff explained all the areas on the maps. Commissioner Romelus inquired would other developments be part of the District Energy Plant. Mr. Groff responded absolutely. Barbara Ready 329 SW 13 Ave, questioned what will happen to the construction debris. Mr. Groff stated that it was much cheaper to recycle the construction debris than to take it to the landfill. Commissioner Romelus inquired as to whose job it would be to maintain a clean site. Mr.Groff noted each contractor would be responsible. Commissioner Romelus expected to see continuous oversight. Mr. Groff stated the City just finished the water plant, and the area was kept clear of debris. 11 Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Commissioner McCray asked about the construction workers parking. Mr. Groff indicated the team was working on the logistics of the construction workers parking. He stated this would be a phased in approach. The parks would be built last, because we need that area for parking and storage of supplies. It was a very tight site. The team will be there every day. Commissioner Casello inquired about the traffic the construction vehicles generate. Mr. Groff explained the City will coordinate the traffic flow issues. Commissioner Casello questioned with the tight work schedule, what would be the working hours for the construction. Mr. Groff responded the City Ordinance states work can begin from 7:00 am - 6:00 pm. Ms. LaVerriere stated the City has funding for the project from a public information standpoint. The City will have a website, there will be cameras on the property, and residents can see what was going on at the site. Mr. Groff indicated staff has information on the City website, Facebook, and twitter feeds every day. Commissioner Romelus asked how much research has been done on the feasibility of a hotel. Mark Hefferin, President, E2L Real Estate Solutions, stated there was a feasibility study conducted. He indicated the market demands are very high for this type of hotel. There was one other hotel planned in Boynton Beach. The issue was accommodating the hotel in the small space provided. Commissioner McCray asked how many years has the City spoken about the Town Square Project. Lori LaVerriere, City Manager, responded it has been more than 10 years. She needed to research the time frame. Commissioner McCray said it has taken an enormous amount of time. Allen Hendricks, 122 SE 4 Avenue, inquired if the building would be LEEDS certified. Mr. Groff responded the building would not be LEEDS certified. The buildings will have a Green Globe Certification. He explained Green Globe is a structured assessment of the sustainability performance. Mr. Groff indicated the Green Globe standard is recognized as the highest level of sustainability. Mr. Hendricks indicated he would like to see some branded bus stops throughout the City. He believed it was easy to implement. In addition he wanted to know about the inspections for Town Square. Mr. Groff indicated every engineer and architect will review the plan to make sure the designs are correct to specifications. 12 Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Flynn Holland, 618 South Searcrest Boulevard, speculated with this heavy equipment on the roads there may be a possibility of the roads needing repairs. She indicated as seen on 500 Ocean all of the roads were damaged. Was there anything the City has in place regarding the roads? Mayor Grant explained the CRA was looking to redevelop Boynton Beach Boulevard from 1-95 to Federal Highway. The other roads are not owned by Boynton Beach, they are owned by the County. Ms. Holland inquired as to the County contact. Mr. Groff stated the City was asking the County to spend those funds which Boynton Beach has provided. The County needs to improve Seacrest Boulevard. Susan Oyer, 140 SE 27th Way, asked who she should email on a Sunday when she sees debris in the roadway. Ms. LaVerriere offered her email. Mr. Groff stated once the project has begun; there would be a hotline number available to the residents. Jerry Taylor, 1086 SW 26" Avenue, indicated he was a member of the Surtax Fund Committee. The responsibility of the Committee was to make sure the surtax funds are spent for infrastructure in the City. He was concerned staff was recommending $3M to be spent on the new Cultural Center. The Committee would need to look to see if the surtax money can be invested in a new project. Ms. LaVerriere indicated staff was very comfortable that the expenditure for the Cultural Center fits into the confines of what surtax funds are allocated. She indicated this was a rehabilitation of an existing building. Commissioner McCray stated the City has an Oversight Committee; he does not want to push the sidewalks or other needed repairs to the side in order to make Town Square work. Commissioner Romelus indicated for clarification, speaking about Cultural Center, staff was speaking about the Old High School. Mr. Groff stated that was correct. Commissioner Romelus asked how much of the affordable housing ordinance was being put into place. John Markey, indicated they are going to exceed the minimum, they are anticipating 20 percent. They have design units which are a smaller type, that the price would make them affordable. Commissioner Romelus inquired as to the cost of the rental units. Mr. Markey stated it would be approximately $1000 for the rental units. Commissioner Romelus stated this would be for a studio or a 1 bedroom apartment. 13 Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Commissioner Romelus recalled it was $750 earlier. Mr. Markey indicated he could not hit that number. Steel was increasing as well as other construction costs. Commissioner Romelus asked was that a number where we see in other areas. Was this number common? Mr. Markey responded they are setting the pace. Mr. Markey stated his company has completed a study last year; it was about 90 pages and was proprietary, but was provided to the City of Boynton Beach. Mayor Grant asked for a motion to recess the City Commission meeting. Motion Commissioner McCray moved to recess. Commissioner Romelus seconded the motion. Vote The motion unanimously passed City Commission recessed at 5:29 p.m. COMMUNITY REDEVELOPMENT AGENCY SPECIAL MEETING Chair Grant called the Community Redeveloped Agency special meeting to order at 5:30 p.m. Roll Call Judith A. Pyle, City Clerk, called the roll. A quorum was present. Agenda Approval: 3. Additions, Deletions, Corrections 4. Adoption Chair Grant requested a motion to approve agenda Motion Board Member Romelus moved to approve. Board Member McCray seconded the motion. 14 Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Vote Agenda was approved. Old business Agenda A. Project Review and Action on the Phase II Agreement for Development of the Town Square Project Michael Simon, CRA Executive Director, stated the City Commission approved the Town Square Project Phase I Services Agreement with the development team of E2L, LLC at their June 12, 2017 meeting (see Attachment 1). The Phase I Services Agreement includes the development of an overall project site design, building designs for the new City Hall/Library, amphitheater area, and private sector redevelopment sites. The Phase I Agreement also includes the renovation of the historic High School being managed by Straticon, Inc. At their June 12, 2017 Special Meeting, the CRA Board approved an Interlocal Agreement (ILA) with the City of Boynton Beach to provide funding in the amount of $2,100,000 from their Fiscal Year 2016-2017 budget (see Attachment II). Under the current CRA approved budget for Fiscal Year 2017- 2018, with $1,500,000 used for the initial renovation phase of the High School and the balance of the funding reserved for Phase II of the Town Square project. At the CRA Board's Special Meeting held on December 5, 2017, the Board approved the First Addendum to the ILA to provide funding in the amount of $2,500,000 as part of the 2017-2018 Fiscal Year Budget to continue the renovation of the High School building as well as other eligible construction costs related to the Town Square project. Phase 1 Services as provided in the Town Square Agreement have been completed and all terms and conditions satisfied by the City of Boynton Beach and E2L, LLC. The City of Boynton Beach and the CRA must mutually approve going forward with Phase 2 of the Town Square Project as designed and financially structured. The CRA will be committing tax increment revenue funding annually for a time period intended to end in September 2044. The CRA's annual funding amount under the Phase 2 ILA will not exceed $3,700,000 and will be used for statutorily eligible expenses as identified in the Town Square Master Redevelopment Plan. Chair Grant requested a motion to approve. Motion Vice Chair Katz moved to approve. Board Member Casello seconded the motion. Board Member McCray requested discussion. 15 Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Board Member McCray stated the City has set aside $1.2M for the MLK Boulevard project. The residents in District II are not satisfied with what they have seen over the years. The residents are not happy with the progress. He was voting for this project, with the assumption the citizens will see more progress in District II when it comes to redevelopment. Commissioner Romelus inquired if the Commission already allocated this $1.6M a few months ago. Mr. Mike Simon, Executive Director, CRA, indicated he was providing a summary of what was remaining of the $4.6M which was previously obligated. Attorney Tara Duhy, stated the prior ILA was for a single year, this ILA was a multi- year contract. Vote The motion unanimously passed. Mayor Grant asked for a motion for recess of the CRA Special Meeting. Motion Board Member Romelus moved to recess the CRA meeting. Board Member McCray seconded the motion. Vote The motion unanimously passed. Mayor Grant asked for a motion to resume City Commission meeting. Motion Commissioner McCray moved to resume the City Commission meeting. Commissioner Romelus seconded the motion. Vote The motion unanimously passed 16 Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 CITY COMMISSION MEETING Mayor Grant indicated the City will continue the Commission meeting with the TEFRA public hearing. PUBLIC HEARING to acknowledge appropriate advertising in accordance with Internal Revenue Code of 1986, as amended, Section 147(f) for the purposes of acknowledging the proposed issuance by Public Finance Authority of its Capital Improvement Revenue Bonds, Series 2018 in one or more taxable or tax-exempt series, in an amount not to exceed $78,000,000 and to conduct a public hearing as referenced in the advertising. Attorney Cherof indicated he wanted to recognize Kate Strangle with Broad and Casell the Bond Counsel. Kate Stangle, of Broad and Casell, Orlando Florida, indicated she was serving as bond counsel for the proposed issuance of the bonds. These bonds will be used to fund a portion of the Town Square project. The bonds will be issued for the City Hall, Library, Police Headquarters, Fire Station, various parks, open space enhancements, and the associated infrastructure. The proposal was to have these bonds issued on a tax exempt basis. She explained in order for that to occur, section 147C of Internal Revenue Code requires the bond counsel to obtain the City of Boynton Beach approval in the capacity as a host jurisdiction. The City must make a determination that the City feels it was appropriate for bonds to be issued on a tax exempt basis for this project which will be constructed in the City of Boynton Beach jurisdiction. For purposes of the Internal Revenue Code this item was limited to consideration and determination that this project was for tax exempt bonds being issued. Ms. Stangle stated in order to make that determination, the Internal Revenue Code requires the City of Boynton Beach to conduct a public hearing, this hearing has been advertised and in accordance with all Internal Revenue requirements have been other requirements as set forth in the agenda package. Ms. Strangle stated staff has provided a summary of the proposed bond transaction and this project. The City Commission should open up the hearing to the public for comments and any questions. Once questions have been answered the Commission can close the TEFRA hearing and move on into the agenda. Ms. Strangle stated later this afternoon there was an item being presented for the City's consideration, a Proposed Authorized Resolution. The Resolution includes a finding; you will be making the necessary determination that you are approving the issuance of those bonds for purposes of section Internal Revenue Code 147c. 17 Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 She explained the City would not be the borrower in this Bond transaction, the borrower will be the 501 c (3) entity, which is CFP Boynton Beach Town Square LLC, the sole member of CFP is Community Facility Partners. They are a Minnesota nonprofit Corporation and a qualified tax exempt charitable organization under the section 501c (3) of the Internal Revenue Code. She wanted to state for the record this bond transaction will not constitute indebtedness or a pledge of the City's general credit or taxing power. The Bond would be secured by the City covenant which is included in the proposed authorizing resolution and the proposed form of the facility leases. The City of Boynton Beach is agreeing to budget and appropriate, on an annual basis, available non ad valorem revenue in amounts which are sufficient to make the rent payment under the facility lease form. The City of Boynton Beach was not pledging their ad valorem taxes, the City will make payment to CFP, and CFP Boynton Beach Town Square LLC, would assign those payments to the trustee for the bond transaction. Mayor Grant opened Public Comments. Susan Oyer, 140 SE 27th Way, asked for an explanation of who is CFP. She stated a nonprofit was very transparent. How does it qualify as a charity for a building construction? Mark Hefferin E21, replied he brought in the CFP because they have a long track record of doing this type of project. The project will finish with all assets being reverted back to the City. This organization was doing this for the tax exempt reason. Community Facility Partner, Owner Dan Nelson was an equal partner of Mr. Hefferin. Cindy Falco-Decorrido, 316 NW 1" Avenue, asked if this was going to cost the residents any additional money. Tim Howard, Assistant City Manager, stated the residents will not see a separate tax on the tax bill. He indicated there will not be a separate millage to pay this back. The funding mechanism to make the lease payment was the ILA which the CRA Board just approved for the multi-year period. The CRA would provide part of the funding. The additional funding would come out of the City General Fund. This would be included in the General fund for the next fiscal year and for future years. Mayor Grant inquired if a motion was needed. Ms. Strangle stated not at this time. The City can move on, when considering the authorizing resolution, which includes a finding, wherein the City was acknowledging it was appropriate to issue the bonds on a tax exempt basis. Mayor Grant asked Ms. Strangle, in her professional opinion, if the City was working within the confines of the Tax Code. Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Ms. Strangle responded yes, throughout this process, the council will be working on the bond documents. Before the transaction can close there will need to be an opinion of bond counsel, which addresses the tax exempt status and acknowledges the bond can be issued under a tax exempt basis. Attorney Cherof indicated Mayor Grant needed to close the TEFRA. Mayor Grant indicated the TEFRA was now formally closed. Mr. Howard advised the Commissioner the authorizing Resolution was item F on the agenda. B. PROPOSED RESOLUTION NO R18-041 - Authorize the Mayor to sign an Inter -local Agreement with the Boynton Beach Community Redevelopment Agency for the funding for certain portions of the Town Square Project. Attorney Cherof indicated this was the second half of the action by the Community Redevelopment Agency, which was the signing of the inter -local agreement. Mayor Grant read the proposed resolution. Mayor Grant asked for a motion to approve. Motion Commissioner Casello moved to approved. Commissioner McCray seconded the motion. Vote The motion unanimously passed. C. PROPOSED RESOLUTION NO. R18-042 - Amend the adopted FY 2017- 2018 General Fund Budget from $89,752,645 to $93,253,628, an increase of $3,500,983. Mayor Grant read Proposed Resolution R18-042. Mayor Grant asked for a motion to approve. Motion Commissioner Romelus moved to approved. Commissioner Casello seconded the motion. 19 Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Commissioner McCray asked why they have the $3.5M increase. Mr. Howard indicated the Resolution being presented was similar to the one which passed last year. He stated there were cost associated with Phase 1 which the developer would incur, in the event the City did not go to phase 2, the City set aside $2.5M to $2.6M. The City was at a point to go into phase 2. The bonds were to be issued and bought would take 90-120 days on a fast track. The City options were to stop work on all design work, from 90-120 until the bond was issued, or determine a mechanism was to continue the design work, by agreeing with a Phase 2 agreement with E2L. In order to do so the developers needed to increase their line of credit, so their contractors could get paid. Their funding institution has required the City to do a budget amendment. The City appropriated out of the fund balance the contracted price to be paid for the work which has been done. When the bonds are issued the cost would be covered. The appropriation would not be needed any longer. Mayor Grant asked where the $3.5M was coming from. Mr. Howard explained the $3.5M was coming out of the unreserved fund balance. And will be released by the end of the fiscal year. Commissioner Casello asked once those bonds are issued, the $3.5M would go back into the reserve. Mayor Grant asked if the City was still above the 10% in the General Fund once the debt has been paid. Mr. Howard responded the City has 10% emergency reserve set aside. The City still has $5.3M after the last appropriation. The $3.5M would come out of the $5.3M Vote The motion unanimously passed. D. PROPOSED RESOLUTION NO. R18-043 - Authorize the Mayor to sign the Town Square Redevelopment Phase 2 Services Agreement with E21- Real Estate Solutions, LLC of Winter Park, FL. Mayor Grant read Proposed Resolution R18-043. Mayor Grant asked for a motion to approve. Motion Commissioner Casello moved to approve. Commissioner Romelus seconded the motion. Commissioner McCray asked if this was the one for the entire Town Square Project. Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Attorney Cherof stated this covers the High School and the District Energy System and related activities. Mr. Howard indicated item F would cover the Master Development agreement. Vote The motion unanimously passed. E. PROPOSED RESOLUTION NO. R18-044 - Authorize the Mayor to sign a Master Development Agreement with CFP Boynton Beach Town Square, LLC for the development of certain improvements within the Town Square Project and approval for the purposes of Section 147(F) of the Internal Revenue Code and general authorization to obtain permanent financing for the CFP improvements and providing for other related matters. Mayor Grant read Proposed Resolution R18-044. Mayor Grant asked for a motion to approve. Motion Commissioner Casello moved to approve. Commissioner Romelus seconded the motion. Commissioner McCray indicated he was in favor of the Police Department being moved to High Ridge Road. He was not in favor of the Library being torn down. He stated he wanted this to be a unanimous vote. Mayor Grant thanked Commissioner McCray for his support. Commissioner Casello indicated this Commission needed to look out for the entire City. Commissioner McCray stated he votes for the entire City. He wanted to say the reason for the CRA was to get rid of the slum and blight. Although he represents District II, he votes for the betterment of the entire City. He stated District II feel as though MLK Boulevard was being neglected. Attorney Cherof read from the resolution. Indicated the Commission motion would wrap up to item B. Attorney Cherof indicated there needs to be a motion to adopt R18-044. 21 Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Vote The motion unanimously passed. F. Motion to approve general terms of Ground Lease Agreement and Facilities Lease Agreement between the City and CFP subject to approval by City Attorney. Attorney Cherof deferred to Attorney Donald J. Doody of Goren, Cherof, Doody & Ezrol, and P.A. Donald J. Doody, of Goren Cherof, Doody & Ezrol, P.A., indicated this motion would allow the law office to continue to negotiate and finalize the terms of the ground/facility lease agreement which included the City Hall and Library. The operational components of this transaction would allow the City to lease the land to CFP, which would construct the project, pursuant to the Facility Lease agreement, then lease the completed projects back to the City. Mayor Grant stated the good news was the City would own the land, and the improvements would be leased from CFP until the bonds are paid off, then the City would own those buildings as well. Attorney Doody asked for the Commission to approve the general terms of both the agreement and allow additional time to finalize the agreement. Commissioner Romelus asked if all the land would revert back to the City, other than the land being sold to the developer. Attorney Doody responded after the bonds are paid the land and buildings will revert back to the City of Boynton Beach. Motion Commissioner Romelus moved to approve. Commissioner McCray seconded the motion. Vote The motion unanimously passed G. PROPOSED RESOLUTION NO. R18-045 - Authorize the Mayor to sign the New Markets Tax Credit (NMTC) Consulting agreement with Atwater Infrastructure Partners, LLC to provide consulting services in connection with the potential allocation of New Market Tax Credits to fund the redevelopment of the Old High School and related services. 22 Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Commissioner McCray wanted to know more about the tax credit and Mayor Grant asked for an explanation about the tax credit. Commissioner Romelus stated this was free money given by the government. Mr. Groff responded that was correct. Motion Commissioner Romelus moved to approve. Commissioner Casello seconded the motion. Vote The motion unanimously passed. H. PROPOSED RESOLUTION R18-046 - Authorize the Mayor to sign the following agreements with JKM Developers/Blackrock or its successors and assigns, for (1) The sale and purchase of real property owned by the city, and (2) A Development Agreement for Multi -Family rental housing with associated parking facilities, and (3) a parking license to provide parking for city facilities; and (4) an option agreement City re -acquisition of real property, all in furtherance of development of the City's Town Square Project. Mayor Grant read Proposed Resolution R18-046. Mayor Grant asked for a motion to approve. Motion Commissioner Casello moved to approve. Commissioner Romelus seconded the motion. Vote The motion unanimously passed 3. ADJOURNMENT Mayor Grant asked for a motion to adjourn the City Commission Meeting. Motion Commissioner Romelus moved to adjourn. Commissioner McCray seconded the motion. 23 Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 Vote The motion unanimously passed. The meeting was adjourned at 6:10 p.m. COMMUNITY REDEVOPLMENT AGENCY SPECIAL MEETING Mayor Grant asked for a motion to continue the Community Redevelopment Agency Special meeting. Motion Board Member Casello moved to continue the CRA meeting. Board Member McCray seconded the motion. Vote The motion unanimously passed. Chair Grant asked for a motion to adjourn the Community Redevelopment Agency special meeting. Motion Board Member McCray moved to adjourn. Vice Chair Katz seconded the motion. 1T[•� The motion unanimously passed. The meeting was adjourned at 6:11 p.m. (Continued on next page) 24 Special Joint Meeting Minutes City Commission and Community Redevelopment Agency Boynton Beach, Florida March 13, 2018 ATTEST Judith A.,;Pyle, CMC City Clerk Queenester Nieves Deputy City Clerk 25 CITY,OF BOY TSN Mayor - Steven B, -Grant Viee�gllayorf Christina Romelus — Justin mmissioner - lick McCray mmissioner - Joe Casello NovusAGENDA `� I "� t �� Page 1 of 2 CLOSE Community Redevelopment Agency Board Meeting Tuesday, March 13, 2018 - 4:00 PM Program Room at Boynton Beach City Library located at 208 S. Seacrest Boulevard 561-737-3256 CRA Special Meeting AGENDA 1. Call to Order 2. Invocation 3. Roll Call 4. Agenda Approval 5. Old Business A. Proiect Review and Action on the Phase II Aareement for Develoament of the Town Square Project 6. Adjournment NOTICE IF A PERSON DECIDES TO APPEAL ANY DECISION MADE BY THE CRA BOARD WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING, HE/SHE WILL NEED A RECORD OF THE PROCEEDINGS AND, FOR SUCH PURPOSE, HE/SHE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCE=EDING IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. (F.S. 286.0105) THE CRA SHALL FURNISH APPROPRIATE AUXILIARY AIDS AND SERVICES WHERE NECESSARY TO AFFORD AN INDIVIDUAL WITH A DISABILITY AN EQUAL OPPORTUNITY TO PARTICIPATE IN AND ENJOY THE BENEFITS OF A SERVICE, PROGRAM, OR ACTIVITY CONDUCTED BY THE CRA. PLEASE CONTACT THE CRA, (561) 737-3256, AT LEAST 48 HOURS PRIOR TO THE PROGRAM OR ACTIVITY IN ORDER FOR THE CRA TO REASONABLY ACCOMMODATE YOUR REQUEST. ADDITIONAL AGENDA ITEMS MAY BE ADDED SUBSEQUENT TO THE PUBLICATION OF THE AGENDA ON THE CRA'S WEB SITE. INFORMATION REGARDING ITEMS ADDED TO THE AGENDA AFTER IT IS PUBLISHED ON THE CRA'S WEB SITE CAN BE OBTAINED FROM THE CRA OFFICE. https://boyntonbeach.novusagenda.com/agendaintranet/MeetingView.aspx?MeetingID=19... 3/15/2018 Ott> BOYNTON BEACH Bringing Community Together Phase 2 Construction March 13, 2018 DEVELOPMENT TEAM • City of Boynton Beach • Boynton Beach Community Redevelopment Agency • E21- Real Estate Solutions / CFB Boynton Beach Town Square, LLC • Atwater/Piper Jaffray • ADG Architects • HJ High Construction • REG Architects • Straticon, Inc. • Baker Barios Architects • Haskell Construction • Kimley Horn Engineers • JKM Developers/Blackrock • Finfrock Industries VOW s r410 a Existing site Conditions ITMOWN SQUARE BOYNTON BEACH Proposed Public / Private Master Plan hT.(OVM SQUARE BOYNTON BEACH Historic High School / Cultural Center City Center (City Hall/Library) Hotel North Residential/Commercial Structures South Residential Apartments North Parking Garage South Parking Garage Office/Retail 500 SF Restaurant Space 500 Seat Auditorium 3,600 SF Business Incubator Space 5,000 SF Cafe/Lobby/Meeting Space 120 Rooms 15,000 SF Retail Space 425 Residential Units 13,800 SF Restaurant Space 15,000 SF Office/Retail Space 280 Residential Units 991 Total Spaces 101 City Spaces 918 Total Spaces 364 City Spaces 30,000 SF with surface parking Public Buildings and Current Private Development Details P6- ITMOVM SQUARE BOYNTON BEACH Site Area: 16.5 Acres Proposed Improvements: Full underground utilities and telecommunication infrastructure, new roadways, hardscape, landscape, lighting and pedestrian access. Current Construction Costs: Site Work / $10,574,480 Utilities / $3,0739572 Demolition / $2,040,203 Site Work and Utilities Building Square Footage: 28,402 SF Building Construction: Masonry/stucco with wood roofing system and steel trusses in auditorium Proposed Use: Recreation and Civic functions, Rental for private functions and potential cafe Current Construction Costs: $11,068,818 Boynton Beach Cultural Center ITMOWN SQUARE BOYNTON BEACH Building Square Footage: Building Construction: Proposed Use: Current Construction Costs: 109,255 SF Tilt wall, Steel Structure with masonry/glass exterior City Services, Operations, Administration and Library Services $26,980,747 City Hall / Library 4*) ITMO" SQUARE BOYNTON BEACH It 1 m� 1 ® ®- Building Square Footage: Building Construction: Proposed Use: ,�,, L�LN- 11,235 SF Masonry/stucco with steel truss roofing and apparatus bays Fire Station #1 staff and equipment and special event public safety Current Construction Costs: $4,804,693 Fire Station #1 ITMOVM SQUARE BOYNTON BEACH 4,5 Building Square Footage: Building Construction: Proposed Use: Current Construction Costs: 58,234 SF Tilt -wall, Steel Structure with masonry/glass exterior Boynton Beach Police Department $199203,175 Police Headquarters SQUARE BOYNTON BEACH OVA 00.0 now - Plant Size: 2,700 ton plant Building Construction: Tilt -wall, Steel Structure with masonry exterior including sound attenuation panels for cooling towers Proposed Use: Chilled water supply to all buildings Current Construction Costs: $11,500,000 District Energy Plant hT.0vjW SQUARE BOYNTON BEACH I a J Structures and Spaces: South / 364 City Spaces, North / 101 City Spaces Building Construction: Pre -cast concrete Proposed City Use: Public, City Staff, and Public restroom facility adjacent to park. City Capital Costs: $1092849618 Parking Garages Shared parking with private development '. O SQUARE BOYNTON BEACH Notes: The final design and permitting is scheduled for completion in July 2018 Demolition starting in July 2018 Utility construction starting in June 2018 Construction Component Estimated Completion Dates Current Project Mobilization 7/1/2018 Demolition 7/1/2018 Schedule High School Renovation 11/18/2018 District Energy Plant 2/15/2019 Garage B - South 7/24/2019 Fire Station #1 7/28/2019 City Hall / Library 9/5/2019 Garage A - North 10/27/2019 Police Headquarters 11/22/2019 South Block Residential 2/20/2020 Hotel & Parking 4/17/2020 ITMO North Block Res/Comm 4/17/2020 SQUARE Ocean Ave Res/Comm 12/3/2020 BOYNTON BEACH CITY BUILDING/SITE FUNDING SOURCE City Hall/Library 26,980,747 Building Demolitions 2,040,203 Overall Site Infrastructure 10,574,480 Police Building 19,203,175 Project Cost Fire Station #1 4,804,693 Bond/CFP costs 2,348,660 Developer Costs 6,003,922 Land lease payment 2,000,000 Contingency 2,161,964 Sub Total 76,117,844 Bond Issue Site Utilities 3,073,572 Utilities CIP-Current Budget District Energy 11,500,000 City financing -Utility Bank Loan High School 11,068,818 City/CRA/New Mkt Tax credit/loan Parking 10,284,618 Furniture 3,000,000 Interim Move costs Sub Total 3,287,500 6,287,500 IT'.40" SQUARE BOYNTON BEACH Total Project Costs 118,332,352 CFP will complete a Bond issue not to exceed $78,000,000 Issue: June 2018 Final maturity: June 2044 The City's annual lease payment is $4.4M - $5.1M with funding from the City and CRA. CITY BUILDING/SITE Public Buildings City Hall/Library 261)980,747 Building Demolitions 290409203 Funding a n d Site Infrastructure 10,5749480 Payments Police Building 195203,175 Fire Station 41 4,804,693 Bond/CFP costs 2,348,660 Development Costs 6039922 Land lease payment 290005000 Contingency 2,161,964 hTMOWN SQUARE BOYNTON BEACH Sub Total 7691179844 Site Utilities 390739572 Financing Costs 514,996 Development Costs 537,460 District Energy 10,447,544 Sub Total 1195009000 Boynton Beach Utilities capital improvement budget includes funding to upgrade and replace existing utilities within the Town Square boundaries The City will establish a District Energy Utility to construct and maintain a chilled water plant to supply chilled water for air conditioning for the new structures along with other private development in the area. A Utility Loan will be used for financing and repaid through rates. As other areas in the City redevelop, the City will have the opportunity to expand the new utility. Utility Funding and Payments 4*> hT.40" SQUARE BOYNTON BEACH Development Costs High School Sub Total Current Purchase Order 537,460 10,531,358 11,068,818 ( 3,000,000) New Market Tax Credits ( 2,500,000) Costs remaining 5,568,818 (NMTC Loan for 12-18mths) FY17/18 CRA funding ( 1,600,000) City FY18/19 Surtax Funds ( 3,000,000) CRA FY18/19 funding ( 968,818) Balance After I Historic High school Funding and Payment ,T.40WN SQUARE BOYNTON BEACH Parking Spaces South Parking Spaces North Sub Total 7,913,262 2,371,356 10,284,618 Land Value South Garage ( 1,005,558) Land Value North Garage ( 1,186,592) Land Value South Residential ( 2,973,750) Land Value North Residential I( 3,128,750) Land lease payment ( 1,989,968) ( 10,284,618) City Owned Parking Spaces Funding and Payment IT.40" SOUARE BOYNTON BEACH Furniture 3,000,000 Interim Move: Initial Move t empory� pace 350,000 : _ __ -'— Temporary Lease Space – Monthly Payments 215875500 Costs for Initial Move to Temporary Space 35000 Furniture & Interim Move Sub Total 692879500 Potential Funding: Land Sale for Hotel Site 1,750,000 Project Permit Fees -Public Bldgs 1,500,000 General Fund operating budget, replaces expenses for current buildings over 24 months 3,037,500 6,287,500 Additional Costs and Potential Funding IT.40vm SQUARE BOYNTON BEACH City Hall / Library Fire Station #1 CFP Boynton Beach Police Town Square, LLC Headquarters Private Activity Bond Parks & Open Space Utilities and > Infrastructure +-J • U High School Redevelopment New Market Tax E21 -Real Estate Credits / CRA / Solutions, LLC District Energy Surtax Syste m AM Development0 465 Parking Spaces =' Land Sale Proceeds 4tA Required Action by the City Commission • Conduct a public hearing that acknowledges the issuance of a Capital Improvement Bond not to exceed $78,000,000 Required Actions by the CRA Board and City Commission • Approve an Interlocal Agreement between the CRA and City to fund certain portions of the Town Square Boynton Beach project Required Resolutions by the City Commission • Resolution #18-042 — Budget Amendment for Town Square E21- Real Estates Solutions, LLC — Redevelopment of the High School, Construction of the District Energy System and design and construction management services • Resolution #R18-003 - Phase 2 Services Agreement c: q3 March 13, 2018 Actions Required by CRA and City Commission AMA hTMOWN SQUARE BOYNTON BEACH CFP Boynton Beach Town Square, LLC - Development of City/Hall Library, Fire Station #1, Police Headquarters Building, all open March 13, 2018 space/parks and associated site and road work Actions • Resolution #R18-044 - Master Development Agreement Requires! by • Ground Lease Agreement -Approve as to form CRA and City Commission • Facilities Lease Agreement - Approve as to form Atwater Infrastructure • Resolution #R18-045 -New Markets Tax Credit ("NMTC") Consulting Agreement - Funding agreement for the High School Construction Private Development - JKM Developers • Resolution #R18-046 • Purchase and Sale Agreements ®"Parking License Agreements •v SQUARE Development Agreement BOYNTON BEACH • Option Agreement SQUARElovm BOYNTON BEACH I QUESTIONS?