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Minutes 05-08-18 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD IN COMMISSION CHAMBERS, CITY HALL, 100 E. BOYNTON BEACH BOULEVARD, BOYNTON BEACH FLORIDA ON TUESDAY, MAY 8, 2018, AT 6:30 P.M. Present: Steven B. Grant, Chair Mike Simon, Executive Director Christina Romelus, Vice Chair Tara Duhy, Board Counsel Joe Casello, Board Member Justin Katz, Board Member Mack McCray, Board Member 1. Call to Order Chair Grant called the meeting to order at 6:32 p.m. and led the Board in the Pledge of Allegiance to the Flag. 2. Invocation Chair Grant gave the invocation. 3. Roll Call Roll was called. A quorum was present. 4. Agenda Approval A. Additions, Deletions, Corrections to the Agenda None. B. Adoption of Agenda Motion Board Member McCray moved to approve. Board Member Casello seconded the motion that unanimously passed. 5. Legal None. Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 8, 2018 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 None. 7. Announcements and Awards A. Movies in the Park Mercedes Coppin, Special Events Coordinator, announced the May 4th Movies in the Park event featured The Incredibles. About 100 people attended, but rainy weather ended the movie early. Staff was still able to highlight five CRA businesses, which were: The Marina Cafe, Driftwood, Chips Ahoy Charters, Deep Ocean Reef and Bar, and the Colonial Gateway Veterinarian Center. The next event is scheduled for Friday, June 1St at 8:30 p.m. at the Ocean Avenue Amphitheater and will feature .lumanji, a PG 13 rated, action, fantasy film. Free popcorn will be available to the first 100 attendees. It was recommended attendees bring lawn chairs and pack a picnic for the evening. Light snacks will be available from the popcorn vender, but no food trucks will be present. Staff will also feature another five CRA District business videos prior to the film. B. Music on the Rocks Ms. Coppin advised the April 20th event, featuring The Flyers, had a great turnout. About 250 people attended of which 67% were residents and 18% came for leisure. The next Music on the Rocks will be held on May 18th from 6 p.m. to 9 p.m. featuring the band Completely Unchained, the Van Halen cover band. Both the Food Truck Invasion and a mobile bar serving cocktails will be present. 8. Information Only A. Marketing and Business Development Campaign B. Public Comment Log C. Public Relations Articles Associated with the BBCRA On a different matter, Vice Chair Romelus congratulated Board Member McCray on his being recognized as one of top 50 influential leaders in South Florida. 9. Public Comments 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 8, 2018 Susan Oyer, 140 SE 27th Way, praised Ms. Coppin on the movie event and reminded all about the 10 minutes of bird watching she had spoken about at a prior meeting. She announced E Bird still had its sites up and she requested all present consider helping with the world bird count. Harry Woodworth, 685 NE 15th Place, was present with complaints about debris and screening and buffering at Yachtsman Plaza. Around December 15, he met with Andrew Mack, Development Director, other City representatives and the owner's representative and attorney to review the matter. The work was to be completed in two phases. The developer would restore the landscaping behind the center on the south side that was destroyed and/or removed as part of his remodel. He expressed the work did not comply with City Codes and was not approved. The second phase would be to do the same behind the north side of the plaza. Those who live behind the Center have to see the back and ugly bare sides of the plaza and air conditioners as well as the rest of the mess that had previously been screened and buffered. He noted the developer accepted funds from the CRA and agreed to make the improvements multiple times. After addressing Phase I on the south side of the property, Phase II was to commence immediately and it has been five months. He requested the Board's assistance to have the property brought into compliance. There had been several meetings and the excuse they have been receiving was they were waiting to see how the plants and trees grow before planting on the other side. He implored the CRA to address the issue as the street looks like a ghetto. Board Member Casello asked if the CRA could follow up and provide a timeline for compliance. Mr. Simon agreed to research the issue and report back at the next meeting. Board Member McCray requested Mr. Simon hold a meeting with Mr. Woodworth and the owner for all to be on the same page. He had requested Mr. Woodworth bring the matter to the Board because he represents his District. Mr. Simon explained when the owner applied for his grant, the work performed under the grant was accomplished and the reimbursement was made. The CRA has helped to solicit tenants and promote the Plaza, but the City handles enforcement of City Codes or compliance with the Land Development Regulations. At this point, only tenants would be eligible for CRA assistance. The owner was still restricted from grants as he was stili working under the first application. Mr. Simon explained he would review. Bernard Wright, 713 NW 2nd Street, commented he was convicted of a felony and questioned if he could serve on an advisory board if he left the question the advisory board application asking if he was ever convicted of a felony blank. Mayor Grant explained advisory boards are a City function and understood the inquiry to be if the question should be on the application. Mayor Grant thought it should be brought to the City's attention and he did not know the answer to the question. Dr. Piotr Blass, 113 Tara Lakes Drive, explained he has a futuristic idea of creating the tallest building in the world and advised he and architects were working on one in Warsaw as he was recently there. The original site he had contemplated in Boynton Beach was 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 8, 2018 already being preserved. His second choice would be to recreate the Boynton Beach Mall. He favored having a study and asked if there was any CRA owned land that could be used for such a building. He thought the building would provide affordable housing to everyone in the area. It would eliminate poverty and introduce prosperity. He reminded the Board they could harvest from the Gulfstream and have abundant energy, He also thought Board Member McCray was one of the two most intelligent people in Florida. Board Member McCray explained there are height restrictions and his inquiry should be directed to the City Commission. No one else coming forward, Public Comment was closed. 10. Consent Agenda A. Financial Report Period Ending April 30, 2018 B. Monthly Purchase Orders C. Approval of CRA Board Meeting Minutes - March 13, 2018 D. Approval of CRA Board Meeting Minutes -April 10, 2018 E. Consideration of the Revised CRA Human Resource Policies and Procedures Manual F. Approval of Commercial Rent Reimbursement Grant Program in the amount of $10,800 for Monarch Pet Memorial Services Inc. located at 805 N. Federal Highway This item was pulled by Board Member McCray and be bundled with items G, H, and I. G. Approval of Commercial Interior Build-Out Grant Program in the amount of $25,000 for Monarch Pet Memorial Services Inc. located at 805 N. Federal Highway This item was pulled by Board Member McCray. H. Approval of Commercial Facade improvement Grant Program in the amount of $25,000 for Monarch Pet Memorial Services Inc. located at 805 N. Federal Highway This item was pulled by Board Member McCray. I. Approval of Commercial Construction Permit Grant Program in the amount of $1,951 for Monarch Pet Memorial Services Inc. located at 805 N. Federal Highway 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 8, 2018 This item was pulled by Board Member McCray. J. Approval of Commercial Facade Improvement Grant Program in the amount of $900 for Front Street Development, LLC d/b/a Marina Cafe located at 100 NE 6th Street in Marina Village K. Approval of Commercial Interior Build-Out Grant Program in the amount of $11 ,400 for Front Street Development, LLC d/b/a Marina Cafe located at 100 NE 6th Street in Marina Village L. Approval of Commercial Rent Reimbursement Grant Program in the amount of$10,800 for Beacon Consulting Engineers, LLC located at 625 Casa Loma Blvd, Suite 106 in Marina Village M. Approval of Commercial Facade Improvement Grant Program in the amount of $18,220 for Reflection Auto Body, Inc. d/b/a Bruno's Auto Body & Paint located at 217 NE 3rd Street N. Approval of Commercial Rent Reimbursement Grant Program in the amount of$10,200 for Alexis Knight Architect, Inc. located at 100 NE 6th Street, Suite 102 in Marina Village O. Approval of Commercial Facade Improvement Grant Program in the amount of $1,750 for Ekel, LLC located at 634 E. Ocean Ave P. Approval of Extension for Divine N Corp, d/b/a That's Amore's Commercial Interior Build-Out Grant and Commercial Facade Improvement Grant Programs located in Casa Costa Q. Approval of Extension for Driftwood 2005, LLC's Commercial Facade Improvement Grant Program located at 2005 S. Federal Highway R. Approval of Extension for FICE Design, Inc.'s Commercial Interior Build- Out Grant Program located in Casa Costa 11, Pulled Consent Agenda Items F. Approval of Commercial Rent Reimbursement Grant Program in the amount of $10,800 for Monarch Pet Memorial Services Inc. located at 805 N. Federal Highway Alan Gardner, 805 N Federal Highway, the applicant, was present. Board Member McCray explained he represents the District in which the business would be located. He asked about the business and learned it would be a pet memorial service, selling keepsakes, memorial items, urns, and offering cremation services using a flameless 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 8, 2018 technology called Aquamation. Board Member McCray asked if there would be storage or a backlog of animals and if they would pick up deceased pets. Mr. Gardner explained they would pick up the pets and store them in a freezer for a day or two before undergoing the Aquamation process. Mr. Gardner explained the freezers are ground floor freezers but the decedents will not be frozen, rather they must be kept at a certain temperature. Board Member McCray was concerned about the chemicals. Mr. Gardner explained the chemicals used in the process are stored in dry areas. When the process is complete, all that remains are amino acids, soaps, sugars, and salts. Board Member McCray asked who would pick up the pets and learned Mr. Gardner and his employees will transport the client's pets to the facility. They will have walk in services for those willing to bring in their deceased pets and have a small viewing room. The turn-around time is normally about four to seven days, but he could accommodate the owner's wishes. Board Member McCray had no objection as long as he complies with State and Environmental Protection laws. Mr. Gardner's sister had applied for the funeral home license, but was unaware of when she started the process. He noted Aquamation is approved in the State of Florida. Board Member McCray explained in order to obtain the City Business Tax Receipt, he had to have the license first. Mr. Simon explained no CRA funding will be given until evidence of the Certificate of Occupancy is received and then the funds are given on a reimbursement basis. Mr. Gardner explained there are two Aquamation Pet Crematory businesses operating in north Florida, and this will be the first in South Florida. He thought there would be no issues and commented they already received approval for the business from City zoning. Motion Board Member Katz moved to approve (Items F, G, H, and I.) Board Member McCray seconded the motion that unanimously passed. E. Consideration of the Revised CRA Human Resource Policies and Procedures Manual Chair Grant had a question about item E noting Mr. Simon had discretion regarding severance pay. Mr. Simon explained his discretion was only for liquidation of a certain amount of accrued vacation hours due to an employee if, and when, they terminated employment. It was not related to severance. There is reference to a severance package in the language prior to this item up for approval, which indicated 90-day severance pay was automatic. Mr. Simon suggested saying severance would not exceed 90 days and it was not guaranteed, rather Mr. Simon would make the determination whether severance would be 90 days pay or less. Accrued vacation and sick hours was automatic as part of the guidelines. Mr. Simon explained severance would be automatic if the agency closed and it wanted to offer a three-month severance. If an employee was terminated at will, or with or without cause, the prior language in the manual indicated there was 90-day severance. Mayor Grant was aware the CRA let some employees go 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 8, 2018 in 2017 and asked if the 90-day severance was given. Mr. Simon explained it was not, as the referenced individuals were consultants and not agency employees. The former marketing individual was already past the 90-day probation period. Accrued sick and vacation hours up until termination was paid, but because of the policy language, he could not authorize less severance. Mayor Grant thought there had to be extenuating circumstances and favored 60 days severance and not 90. Board Member McCray thought a range of 60 to 90 days was appropriate. Unless the Board closed the Agency, he would report why 90-day severance was supported. Employees who were fired or got another job should not be guaranteed severance pay. Attorney Duhy explained there was no legal requirement for either and it was at the discretion of the Board. Board Member McCray asked City Manager LaVerriere about the City's policy and she indicated only employees having appointment letters negotiate severance at hiring, but it never exceeds 90 days. Typically, department and director level employees get 90 days, but not if it is for termination. It is left to her discretion. There were no objections to severance up to 90 days. Motion Vice Chair Romelus moved to approve Item E. Board Member McCray seconded the motion that unanimously passed. Motion Board Member McCray moved to approve the remainder of the Consent Agenda. The motion was duly seconded. Board Member McCray thanked staff for the Economic Development Grant Program overview. It was noted there was only $4,000 left in the program for the remainder of the year from slightly more than $552,000. Board Member Katz favored moving funds over to the program Board Member McCray also agreed. The motion unanimously passed. 12. Public Hearing 13. Old Business A. Neighborhood Officer Program 2nd Quarter Report for FY 2017 - 2018 Motion Board Member Katz moved to approve. Board Member McCray seconded the motion 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 8, 2018 that unanimously passed. Board Member McCray expressed his appreciation to the team. B. Project Update on Ocean Breeze East Paul Bilton, Centennial Management, 7735 NW 146th Street, Suite 306, Miami Lakes, explained the Florida Housing Finance Corporation (FHFC) has preliminarily recommended to award Centennial Management the 9% tax credits. Mr. Bilton explained FHFC is now in the protest phase of the process as those submitting applications that were not recommended for funding will challenge the tentative award recipient and other opponents. Florida Housing Finance Corporation allocates monies and only funds one development within each county until all counties are covered before awarding a second cycle of funding to counties. All who applied from Palm Beach County are fighting for the top spot allocation. Mr. Bilton explained those challenging are actually petitioning against the FHFC's decision. May 216t is the hearing date and the hearing officer has about two weeks to review the challenges and make a recommendation, at which time whoever does not get a favorable ruling has another 10 days to decide if they want to take it further in the court system. It was hoped the process would be concluded by July. Centennial Management Corporation purchased the property for $800,000. The Local Government contribution was $567,500 and the rest of the money for the project would come from FHFC. Board Member Casello congratulated Centennial Management and expressed the Board has been trying to develop the property for some time and Centennial was the only one who made it happen. The development will be a catalyst and bring much needed affordable housing to the City. Mr. Bilton commented he thinks they are in a good position, but cautioned the process is not finished. He hoped to appear before the Board when the process is complete with good news. Vice Chair Romelus agreed with Board Member Casello's comments and asked if all worked out, when construction would commence. Mr. Bilton responded if approved, they would go before a FHFC Board in July and for the Board to ratify the Hearing Judge's recommendation. They would receive an invitation to underwriting, which takes about a year and during that process they would obtain their building permits and tie up loose ends and financing matters. It could be as early as the summer of 2019. Board Member McCray was hopeful as he represents District II where the development would be situated. He asked if Centennial has challenged other applications and learned in the past, they have not Board Member Katz also shared the Board's sentiments. He felt developing the property was an exercise in futility that may come to fruition and it was exciting. The news restored his confidence in seeking future funds in this manner. C. Consideration of a Letter of Interest Submitted by Tri-Unity Homes for the CRA Owned Property Located at NE 4th and NE 5th Avenues, a/k/a the Cottage District 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 8, 2018 Board Member Katz wanted an RFP versus accepting a letter of intent and pointed out the Board recently developed a process to address when a letter of intent is received on a piece of property they are developing. Chair Grant requested a motion to send a letter requesting they respond to the RFP. Motion Board Member Casello so moved. Board Member McCray seconded the motion that unanimously passed. D. Consideration of an RFP/RFQ for the CRA Owned Property Located at NE 4th and NE 5th Avenues, a/k/a the Cottage District Mr. Simon explained this item was returning to the Board based on direction given at the April meeting. The RFP/RFQ will be issued on May 14th and the deadline to respond will be July 17th. Mr. Simon planned to bring the proposals and selection criteria to the August meeting and noted there are four items specifically listed. Staff needed direction on the incentives the Board would offer, the CRA Advisory Board role and the evaluation process as far as if the Board should hear the presentations prior to the Advisory Board or atter. He asked if they wanted to cap the square foot price, but pointed out not capping the price per square foot gives the developer more freedom to determine the price of the product to make the development successful. Mr. Simon noted the latter could also be addressed through a development agreement and include greater details. Board Member McCray favored the CRA Advisory Board hearing the presentations before the Board. Board Members Katz and Casello also agreed the price per square foot should be dictated by the developer. Vice Chair Romelus asked if there was language in the agreement requiring the developer to have a community partner. Mr. Simon responded they would not have a community partner, but the CRA would use the same community wealth building and local hiring methods the City used. Vice Chair Romelus understood the nature of building wealth was to use local residents in the project. Mr. Simon explained the policy adopted by the City and CRA would not force the developer to align with one community partner, rather it gives the developer the opportunity to hire many residents. Additionally, using only one organization sometimes creates animosity in the community resulting in a negative outcome as they are not reaching all they could. He thought bringing in as many partners the developer could would be the best way to proceed. Vice Chair Romelus asked if the developer would be incentivized and encouraged to hire locally. Thuy Shutt, CRA Assistant Director, pointed out Section I of the RFP has a requirement for local hiring and encouraging local business to apply. The developer has to provide a project description of how they will make attempts to use local residents and qualified contractors and subcontractors. It is a fee simple issue and not a management issue. The project will go through the Site Plan approval process which includes receiving public 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 8, 2018 input on the design and model types. She explained there are many opportunities for the design. The RFP/RFQ has a requirement to submit a marketing plan, reflecting how fast they can build, sell and the outreach to target a particular income market. Vice Chair Romelus asked if the CRA would ask the developer to work with local unions and provide adequate pay. Ms. Shutt explained the program includes how the developer will connect the project to the local community. If the developer cannot procure sub- contractors, services and employees from the community, they are required to provide a training program so when the next round of development comes in, they can pull from that pool. Vice Chair Romelus inquired how the CRA ensures local residents are paid properly. Ms. Shutt explained it is a HUD requirement. There is usually a Section 3 oversight person to review it and the living wages. It was noted there are certain trades that may make more than the minimum, but there are day laborers and unskilled workers that will need to be hired. The Board could set a policy, but it will have to be a measurable program. Vice Chair Romelus wanted the language clear in the RFP. Ms. Shutt explained they would work with Legal to include language in the contract as the CRA does not currently have that policy. Chair Grant noted Section 10 discusses how the deveioper will make attempts to use local residents, advertising employment positions and employee training and more. Ms. Shutt commented if they give the developer guidance when they respond and detail how they would implement the requirements, staff could monitor it as part of the contract. The Development Agreement focuses on the specific outcomes, and in support of Vice Chair Romelus' concerns, the Board could approve language to require documents to be submitted and if their incentive is given on a reimbursement per unit sold basis or in phases, the developer could provide requested documents to support local wages for those jobs in Palm Beach County. When reviewed and approved, the incentive could be distributed. Attorney Duhy recommended amending Section 10 A which currently reads "advertise the employment positions and training" to "advertise the employment positions at a prevailing wage" as it would tie the RFP to the concept. Chair Grant noted the RFP was asking for a minimum of three projects completed in the last five years. The first letter of intent the Board received was not in the development field. He wanted to amend the requirement to name two projects and not limit it to the last five years. There was agreement. Board Member Katz asked if staff investigated options regarding Susan Oyer's request about land abutting her property. Mr. Simon explained he, Ms. Oyer, Mike Rumpf, Planning Director, and Andrew Mack, Development Director, met and discussed the Land Development Regulations (LDR), which is the legal document that requires the buffer. He recommended deferring to the LDRs initially. If there is a problem that arises from the site plan and the Board feels the LDR does not address the issue, the Board could address it then. He noted every other developer has to adhere with the LDRs and 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 8, 2018 between the alleyway abandonment and the setbacks on the east and south side of the property that will be required, the result would be as good as giving her 15 feet. The buffer requirement should alleviate the matter without any statutory conflict. Chair Grant opened public comment Susan Oyer, 140 SE 27t" Way, reviewed the agenda item and inquired about the density. She had viewed different architectural examples and design guidelines and it showed all kinds of things. She liked Tri-Unity's design and thought it was appropriate for the location. She wanted more specifics and transparency. Board Member Katz explained once the Board receives responses and proposals, they could go from there. The Board was specific in the past and the responses were poor. She asked if the Board was looking for one or two stories. Board Member Katz noted some options involved square footage and he did not like multi-story complexes. He had no preference as long as there was continuity in the process. Chair Grant commented at 512 N. Seacrest, there are two-story homes next to one-story homes and the variation is already there. He thought the three properties that will remain would create the variances to go two stories and have some homes be bigger or smaller. Chair Grant commented they are requiring concrete brick, which prohibits modular homes. He wanted to ensure the homes were affordable and he thought modular homes was the best way to go so as they are constructed off-site. Chair Grant asked if the Board would inquire about the modular homes or stay with the concrete brick. Board Member Casello noted those are the types of concepts they could put in the RFP. Ms. Shutt explained there will be guidelines. As for modular homes, there are many forms such as concrete block stucco and insulated concrete forms, which are more durable and can be assembled in five weeks. There are also mag and structural boards. Chair Grant noted attachment I, design criteria. Ms. Shutt explained the CRA wanted more options. She explained maintenance and utility costs associated with CBS have a higher R value and it is cheaper in the long run for the homeowner to have insulated concrete. Board Member Casello supported nothing over two stories. Board Member McCray supported compatibility and casting the widest net to see what comes back. Mr. Simon explained the criteria in the RFP does not allow for rentals only single-family homes. Attachment I, letter E under Streetscape, discusses landscaping, building mass or scale, alternating one or two stories and it establishes to the respondent an alternating one or two story building and a 45 foot height limit. He did not know how affordably a developer could build single-family homes. In general, by having other restrictions, it eliminates four story homes, but if the Board wants to limit the number of stories on the design, it could. The language provides guidance to the type of home that is preferred. Vice Chair Romelus commented the RFP allows for developers to come back with their ideas and sought to have affordable housing in the community. 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 8, 2018 Harry Woodworth, 685 NE 15th Place, commented on the requirement for local contractors as he had worked on several projects that had contract requirements for content, local manufacture and labor, women and minority owned business, and others. He thought developers would say it could not be done and the only thing the requirements would achieve would be irrigation and dirt and shovel work. He pointed out when residents are hired and trained it is important to mandate local content, include a number, scope of work, and include table of values in the front of the contract where it will be read first. Then they will hire, supervise and train local residents. He also explained developers will not want to participate in anything over 15 feet from the ground unless the Board makes them participate. Dr. Piotr Blass agreed with Mr. Woodworth and Ms. Oyer's comments. He spoke about public/private partnerships and thought in the future, the City should participate in building. He wanted lower taxes and thought the only way to effect lower taxes was for the City to produce. He wanted to educate all to a different way of thinking. Board Member McCray noted a Mayor serves a three-year term and asked if he would be in the City as Dr. Blass travels frequently. No one else coming forward, public comment was closed. Attorney Duhy commented a motion was needed to approve the RFP as proposed with the changes as discussed which were: a change to page 6, Section 37.10 A to add prevailing wage; number 5 on page 6 of 37, instead of three projects in five years to two projects and delete "in five years"; regarding the design criteria where it discussed CBS construction to say etc. so developers know other design options would be considered, and the CRA Advisory Board will see the proposals before the CRA Board. Motion Board Member Casello moved to approve. Board Member McCray seconded the motion that unanimously passed. Mr. Simon requested clarification the CRA Advisory Board will get the responses first. Mr. Simon explained the Review Committee is separate. Board Member Katz wanted the Board to hear the presentations first and then refer the Board's selection to the CRA Advisory Board to refine. The members unanimously agreed. E. Consideration of Boynton Village, LLC Compliance Audit Motion Vice Chair Romelus moved to remove the item from the table. Board Member McCray seconded the motion that unanimously passed. Meryl Wolf, Cornerstone Group, 2100 Hollywood Boulevard, Hollywood, Florida, and Joel Mutnick, CPA and partnerwith FISK& Company, 1,000 Pine Island Road, Plantation, Florida were present in response to a letter they received from the CRA on May 1s-t 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 8, 2018 regarding the TIF calculations based on an audit they performed in 2016 and 2017. Ms. Hill disagreed with Cornerstone's calculation of the TIF credit based on an audit Cornerstone submitted for 2016 and 2017 based on the 2nd amended calculation of the cred its. Mr. Mutnick explained there are two types of property, which were homes they were committed to sell (50) originally and rentals. Amendment 2 of the contract stated Cornerstone would be provided credits based on the number of apartments sold and rented as a percentage of total units available applied to a dollar amount. As of September 30th, they sold five of 50 homes as affordable homes. The City agreed with the five homes and of 114 units, 100% were rented under affordable housing. Of the 150 units available, 119 are affordable housing which is about 78% to be applied to the total available funds they are to receive on an annual basis. The amount due would be $82,473. The calculation and the difference between what the CRA and Cornerstone is claiming is based on Cornerstone's inclusion of the second amendment to the original contract pertained to rented and sold houses combined as contained in section 6.1 regarding the DIFA formula. It indicates the developer gets 10% of the eligible pledged project increment revenue awarded pro rata, based on the proportion of affordable access units sold to eligible buyers. If 10% of affordable access units are sold in the first year, the eligible project increment revenue the developer would get would be 10%. The 2nd amendment covered housing sales and rental properties combined. Section 6.1 of the amended report dated 2010 indicates the pledge project increments revenue shall be awarded pro-rata based on the proportion of affordable access units sold to eligible buyers.and affordable access rental units rented to eligible tenants. He explained if 10% of affordable access units are sold and/or rented in the first year in which the developer elects to receive the project increment revenues, the developer or its assigns is entitled to 10% of the eligible pledged project increments. Exhibit E was referenced by Ms. Hill. Mr. Mutnick noted Exhibit E speaks to the number of affordable access rental units sold and/or rented. In this case, 119 were sold and/or rented from the prior schedule. Their calculation of the percentage was about 78.9%. He noted 119 units would be just under 80% and the developer would be entitled to 80% of the calculation. The City determined the original calculation when they only had units sold. The original calculation when they only had units sold explained if 10% of units sold, they would get 10% of the amount. Mr. Mutnick contended that was no longer the case as it was sold and rented units, which yields 80%. The CRA proposed it was about $45,000. Cornerstone's calculated percent based on the second amendment was over $80,000 for one year. Mr. Mutnick commented the combination of the second amendment, the exhibit, and Cornerstones calculation spelled out the issue. Mr. Mutnick pointed out Cornerstone presented two years' worth of calculations in the last audit. They presented an audit in 2015, and did not prepare one for 2016. Their original calculation submitted with the audit they proposed generated the amount due to 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 8, 2018 Cornerstone for 2016 and 2017. The audit report was included and it totaled about $180,000. He believes although it is an annual calculation for those funds, the funds should be paid as they did two years in one year and did not do a calculation in the prior year. The contract indicates it would be done for a 10-year period, not on an annual basis. Chair Grant asked if Cornerstone could skip an audit for five years and then return and present an audit for the prior five years. Mr. Mutnick did not know, but thought the funds could be appropriated, reserved and paid at some point in time when applied for. Attorney Duhy explained she had provided a brief memo. She pointed out addendum Sections 5.2 and 5.27 read together indicate that for the CRA to comply with its legal requirement to allocate funds annually to a project, because the CRA is not able to hold tax funds they receive, the CRA has to receive the audit as required in the initial draft agreement and specifically stated as to the calculation of units to assess the funds. If an audit is not provided and is made a condition precedent to receive funding, the CRA cannot perform that duty which is a statutory requirement. It is the CRA's opinion that if the developer fails to submit a sufficient audit prior to the April 1St deadline, the CRA is not required to provide, and legally cannot, as an entity under state law, provide the funding. April 1st is the due date for the funding. The date of the deadline is not in the contract, but it is a condition precedent to receiving funding in that year. Vicki Hill, CRA Finance Director, referenced Section 6.2. The audit is a condition precedent for the CRA to distribute funding on April 1St. Chair Grant explained if the CRA does not receive the audit before April 1, they do not have to pay. Ms. Hill explained the CRA auditor assisted her with the calculations, as did the past Finance Director and this is the way they felt it should be. There was one for the items sold and the other for the units rented. One category was for 10% and other was for 76%, which is how they got their calculation. Mr. Mutnick understood, but felt it was incorrect based on the amended contract. Chair Grant received confirmation there are two different measuring guideline: one is 10% of homes and the home values with it are homesteaded that are different than the apartment rentals. The exhibit said "either or." That first audit was in 2015 and the second amendment was added in 2010. They also waited five years for the DIFA, which was not in the contract. Attorney Duhy explained she had not reviewed the appendix and wording. She viewed Ms. Hills' interpretation as compliant, but wanted to read the entire agreement as the issue was supercedence of Amendments 1 and 2. Motion Board Member McCray moved to table the item to get a clear picture from Counsel. Board Member Katz seconded the motion that unanimously passed. Attorney Duhy requested Cornerstone state they are waiving the requirement, because the last time they did this, it said the CRA Board will make a determination in April, in order for the CRA to assess their position and bring it back to the Board in June, otherwise 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 8, 2018 the Board would have to un-table the item and vote on it tonight. Mr, Mutnick agreed to defer the item. It was noted both issues were tabled. F. Consideration of Approval of System Audit Reports and Payments Release to Hart Seabourn Cove, LLC for the Properties known as Seabourn Cove - Phase I & Phase II Motion Vice Chair Romelus moved to approve. Board Members Katz and McCray seconded the motion that unanimously passed. G. Project Update 211 E. Ocean Avenue Mr. Simon explained the May 14th deadline with Shovel Ready to obtain their permit or be subject to the reverter clause was met. After many hours of meetings, substantial approvals started last week with staff, the architectural team and with staff review. The Board had extended the 60-day deadline and the Board could waive the reverter. He commented City staff went above and beyond to help and the items were resolved. All that remains is to calculate the fees owed for permits approved and officially approving the item once the fees are collected. Board Member McCray thanked Mr. Williams for his efforts. He had asked Mr. Williams how many individuals he had to go through to get to this point as there were many consultants involved in the project and the developer stayed the course. He appreciated the developer's patience with the City and the City's patience with the developer Jim Williams, AW Architects, 7700 Congress Avenue, Boca Raton, explained there was a lot of turnover. They would respond to comments and then the City would have a new review and more comments, which occurred several times. He appreciated the efforts the Building Department took. Board Member Casello noted months went by with no response from Mr. Williams' team. Only after the Board drew the line in the sand was action taken. Board Member Casello had reservations where the project would go from now and he asked Mr. Simon for a timeline. Mr. Simon explained once the fees are paid between this meeting and Tuesday, commencement of construction must occur within 60 days. Board Member Casello asked for confirmation they could start construction by then. Mr. Williams responded he knew the contractor and he was ready to get started. There were delays on both sides and Mr. Williams was caught in the middle. Board Member Casello wanted to see the timeline followed; however, Mr. Williams explained it was beyond his control. He understood the financing was in place and the contract was signed. Board Member Casello queried if the reverter clause applied if construction did not start in 60 days and learned it could. Board Member Katz thought if at 60 days, it is not done, the contract should be voided and the issue closed. The item will not be on the agenda and the reverter clause would 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 8, 2018 be enacted. He thought minimal efforts were made to comply and it was just enough to drag out the process. Vice Chair Romelus commented they met the requirements and she wanted to move to the next step. She favored working with them. Chair Grant noted it took a lot of work and they have a Certificate of Occupancy for 480 E. Ocean with no tenant. He requested Mr. Williams convey to the owner the Board is looking forward to working with him as much as possible, but they really appreciate timelines. Mr. Williams agreed to do so. 14. New Business A. Consideration of Terms for Interlocal Agreement between the Boynton Beach CRA and the City of Boynton Beach for Funding Associated with the FDOT US1 Intersection Enhancement Project Mr. Simon explained a term sheet and last month's minutes will be provided to the City Commission indicating the Board will enter into an interlocal Agreement when the document is prepared, so the City can sign it as required by the Florida Department of Transportation for the US 1 Corridor Intersection project approved at last month's meeting. Motion Board Member Katz moved to approve. Vice Chair Romelus seconded the motion that unanimously passed. B. Consideration of Interlocal Agreement between the Boynton Beach CRA and City of Boynton Beach for funding associated with the NW 11th Avenue Street and Utility Improvements associated with the Model Block Project Motion Board Member McCray moved to approve. Vice Chair Romelus seconded the motion that unanimously passed. B. Consideration of Request from the Boynton Beach Playhouse for use of the Historic Woman's Club of Boynton Beach (Tabled 4/10/18) Motion Board Member McCray moved to remove from the table. Vice Chair Romelus seconded the motion that unanimously passed. 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 8, 2018 Board Member Katz noted there was an email they were not pursuing venues in the City. No further action on the item was needed. D. Consideration of Grant Funding for the Boynton Beach CRA Non-Profit Organization Grant Program Board Member McCray noted there were several typographical errors on the cover sheet for this item. He explained he was available to proofread. Vice Chair Romelus agreed the errors irk her and she sees them all over. She requested staff slow down. Chair Grant did not see Side Project Inc.'s application. Ms. Shutt explained they are large applications and they were not recommended for funding. In the future, they could include the applications. Chair Grant commented the applicants were are all local businesses and he thought it was important the applicants could review it so they could score higher next time. Board Member McCray wanted to know what the Board could expect from the Community Caring Center with the $57,000 over a six-month period. Sherry Johnson, Executive Director, Community Caring Center, 145 NE 1St Avenue, explained they surpassed all the benchmarks they set for entrepreneur development, economic impact and jobs created. They added a job training program in the Culinary industry. The Board required creating at least 10 jobs last year and at least 30% of them be Boynton Beach residents. They met that requirement and expect to surpass it this year. Mr. Simon explained this grant application was for 2018. Motion Board Member McCray moved to approve. Board Member Casello seconded the motion that unanimously passed. Mohammad Abdul, Habitat for Humanity of S. Palm Beach County, 181 SE 5th Delray Beach. Mr. Abdul explained they requested a $40,000 grant. The organization has continued to build on the partnership with the CRA and the City. They currently have two villas under construction serving four families and they are continuing to undertake six neighborhood revitalizations in Boynton Beach. They want to continue their work in the Heart of Boynton and requested approval as the grant would be used mostly for neighborhood revitalization. Their proposal detailed the costs. Board Member McCray asked what Will the money be used for besides building homes in the HOB and learned they will make repairs outside and/or neighborhood revitalization work, which could include sod or painting. Ms. Shutt explained after approval, staff will work with the grant recipients to develop an agreement with measurables and a timeline which will be on the June 12th meeting 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 8, 2018 agenda. The grant will be reimbursed on a quarterly basis, subject to submitting the deliverables and the back-up documentation. Motion Board Member McCray moved to approve. Vice Chair Romelus seconded the motion. Vice Chair Romelus asked if Habitat could incorporate a program to instill pride in homeownership such as a best home on the street or best street in the neighborhood concept. Mr. Abdul explained they were trying to put together an ambassador team to champion homeowners to be more engaged in the neighborhood. This could also include addressing safety issues such as if a resident sees something, they should say something. He commented he would bring it back to his team as sometimes when homeowners see their water bill, they do not want to water their lawns as needed. Board Member McCray noted years ago the City had a program to recognize people with the most beautiful lawn and he thought the City Manager could bring the information back to revive the program to bring pride back to the community. Chair Grant thought the program could be discussed at the City's budget meeting. Vote The motion unanimously passed. On a different matter, Vice Chair Romelus wanted an update on the Boynton Beach Boulevard renewal process with Kimley Horn or add to a future agenda item. Ms. Shutt explained the CRA applied for a S2.4 million grant with the Transportation Planning Agency for improvements on Boynton Beach Boulevard per the Board, from US 1 to 1-95, with the understanding they would have to dovetail with the Florida Department of Transportation (FDOT) Interchange project. They met all of the minimum requirements and staff was revising the application based on the site visit the City Engineer, she and others had with FDOT representatives had last week. Kimley Horn will submit a revision based on the cross section that was approved by FDOT and there will be a review and ranking at the end of this month. If ranked high enough, some funds could be awarded. She noted the grant program is a five-year program. The FDOT will work with TPA applicants to ensure they get the design approved to meet all standards so the funds can be spent by 2023, which is the same time the interchange work will be done. The CRA has had multiple meetings with FDOT project managers about the interchange and TPA staff. Hopefully, the work could be done in one phase in about four to five years. Mr. Simon explained staff will bring updates on the designs from Kimley Horn as well as the grant as with or without the grant funding, FDOT still has to approve the design. Staff was hopeful they will meet the criteria as an award would offset local dollars. Approval by FDOT will occur by July based on 70% design completion. He advised FDOT will actually do the project if they are doing the design and managing the project. He noted 18 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 8, 2018 this was good because the Town Square projects will be constructed in the next two or three years and it was better to have a new road constructed after the Town Square construction was finished. Board Member McCray attended a TPA meeting as an alternate and there was an in- i service class. He agreed with Ms. Shutt's comments and found the class very educational. The next TPA meeting will be at Intracoastal Park Clubhouse on May 17th at 9 a.m. Staff was also able to connect Galaxy School with FDOT to address traffic issues occurring there during school hours. 15. CRA Advisory Board A. CRA Advisory Board Agenda - May 3, 2018 B. Approval of CRA Advisory Board Meeting Minutes - April 05, 2018 C. Pending Assignments: None D. Reports on Pending Assignments: None E. New Assignments: None 16. Future Agenda Items A. Consideration of Parameters for an RFP/RFQ for Redevelopment for CRA Owned Parcels within the MLK, Jr Boulevard Corridor 17. Adjournment Motion There being no further business to discussed, Board Member Katz moved to adjourn. Board member McCray seconded the motion that unanimously passed. The meeting was adjourned at 8:42 p.m. Catherine Cherry Minutes Specialist 19