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Minutes 07-10-18 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD IN COMMISSION CHAMBERS, CITY HALL, 100 E. BOYNTON BEACH BOULEVARD, BOYNTON BEACH FLORIDA ON TUESDAY, JULY 10, 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 6:30 p.m. 2. Invocation The invocation was given by Minister Bernard Wright, followed by Chair Grant leading the members in the Pledge to the Flag. 3. Roll Call A quorum was present. 3. Agenda Approval A. Additions, Deletions, Corrections to the Agenda B. Adoption of Agenda Motion Board Member Casello moved to approve. Board Member McCray seconded the motion that unanimously passed. 5. Legal 6. Informational Items and Disclosures by Board Members and CRA Staff: A. Disclosure of Conflicts, Contacts, and Relationships for It Presented to the CRA Board on Agenda Meeting Minutes CRA Board Boynton Beach, Florida July 10, 2018 Vice Chair Romelus, and Board Members cCray and Casello had no disclosures or informational items. Chair Grant spoke with David Katz regarding item 13.A, Project update on the Magnuson House. Board Member Katz spoke with a resident and adjacent property owner, Brian Fitzpatrick on the same item. 7. Announcements and Awards A. Music on the Rocks Mercedes Coppin, Special Events Coordinator, gave a recap for the last Music on the Rocks event held on June 15th, and explained due to rain, the event ended early. Staff was able to collect 13 surveys, which revealed 54% of the attendees were residents of Boynton each; 41% heard about the event from a friend; and 29% learned of the event through social media. 8. Information Only A. Marketing and Business Development Campaign B. Public Relations Articles Associated with the BBCRA C. Public Comment Log 9. Public Comments Sherry Johnson, Community Caring Center, 145 NE 4th Avenue, announced the job fair is August 7th at Benvenuto from 2 p.m. to 6 p.m. and they were starting with their social media campaign. She requested attendees go on Facebook and friend the event. She praised Renee Roberts, CRA Social Media and Communications Specialist, and Azim Hussain, CRA Marketing Events and Economic Development Assistant, for their assistance promoting the event through social media. The CRA will loan the Community Caring Center five signs to be displayed around town for the event and anticipated the signs would be designed and erected by the end of the week. A short video about the event was starting to run on Comcast and the week prior to the event, it will appear on television TV sites. The Community Caring Center was working hard to drive attendance and Tony Miller has visited all the universities, schools and culinary trades down to Boca Helping Hands who has a culinary training program, to Miami for culinary trade schools and Florida State College. She left information in the back of the room and advised their website was under construction. They have 30 to 35 recruiters that will attend and there will be a celebrity chef exhibition and she thanked Vice Chair Romelus for assisting with the endeavor and Chair Grant will give a State of the City address. She invited all to attend. Bernard Wright, 713 NW 2nd Street, CEO of Bernard Wright Ministries and Robert E Wells Foundation. At the last City Commission, he held up a photo of children and was 2 Meeting Minutes CRA Board Boynton each, Florida July 10, 2018 pleased they would not be subjected to the elements on the street in the HOB. He thanked all who prayed for them and if they gave another donation, he announced they will continue for another three weeks. He thanked the parents and all who contributed where they may have had a problem. They have some place to go in the mornings and afternoon for breakfast and lunch. There are 65 children participating. He appreciated Board Member Katz' offer last month of$1,000, but commented it would only provide one City camp scholarship. He commented if Board Member Katz was sincere about his donation he could contribute to them building baseball teams and they have great contributors to give the youth one of the most memorable experiences they will have ever had at one time. There is reading area and they need volunteers to read to the youth. They are at the Carolyn Sims Center and he thanked all for their assistance. He provided his phone number for anyone wanting to contribute. He has a 501 (C) 3 Ministry and they have a family gathering at the Carolyn Sims Center. Board Member Katz commented he already issued a $1,000 check to the City Parks and Recreation from his own personal funds two weeks ago. The funds are available to help subsidize individuals that have less than ideal economic situations that want to attend camp. Andrew Fogel, Owner of Meadows Lane in Delray Beach, had a question about agenda item 14C and was informed he could ask the questions when the item is heard. No one else coming forward, Public Comment was closed. 10. Consent Agenda A. Financial Report Period Ending June 30, 2018 B. Finance Department Purchase Orders for amounts exceeding $10,000 for the month of June 2018 C. Approval of CRA Board Meeting Minutes - May 8, 2018 D. Approval of Extension for Divine N Corp, d/b/a That's Amore's Commercial Facade Improvement Grant Programs located in Casa Costa 11. Pulled Consent Agenda Items None Motion Board Member Katz moved to approve the Consent Agenda. Board Member cCray seconded the motion that unanimously passed. 3 Meeting Minutes CRA Board Boynton Beach, Florida July 10, 2018 MENEINEENNEENNOMM= 12. Public Hearing 13. Old Business A. Project Update 211 E. Ocean Avenue, a/k/a Magnuson House Attorney Duhy provided a timeline of events. The first page of the document was a timeline of the agreements and specific timelines that were in each agreement and how they changed over time and the second page was a summary of events, which led to the update at this meeting. At the June meeting, Shovel Ready was in default under the agreement because they failed to receive their building permit before May 14, 2018. At that meeting, the Board discussed options. At the time, Shovel Ready was under notice. The CRA demanded the deed be returned to them by June 14, 2018, and on June 15th, Attorney Duhy's firm, on behalf of the CRA, noticed Shovel Ready and their counsel of an additional default of the agreement for failure to revert the property as required under the agreement and the demand letter. At this time, the Board has to decide whether to proceed through legal actions to enforce the reverter provisions of the agreement. She feels the CRA is on strong legal ground in court. The timeframe from that legal action could be anywhere from six months to a year, depending on how vigorously Shovel Ready chooses to challenge. The CRA would seek for a short duration. This item is for the Board to decide whether or not to move forward with legal action or determine some other action with regard to the default by Shovel Ready. She also forwarded two emails with invoices provided by Attorney Tom Carney to indicate and prove-up costs Shovel Ready incurred and for the prosecution of the permits for the property. Attorney Tom Carney, for Shovel Ready, explained he did submitted most of the bills. He submitted another $3,200 invoice this afternoon, but could not get a hold of the realtor, to whom they paid a $12,000 commission and the out of pocket costs were about $72,000. Shovel Ready felt they were doing as much as they could to complete the project, but last month, there were different views for the delay. Reasons could include if the delay was caused solely by City staff, or by the developer, but they approached it with the idea they wanted to develop the project and they are still in that opposition. He understood the CRA wanted to move in a different direction and he did not want the developer and city to be adversaries, so he returned with a proposal to reimburse them for what they invested in the project. He noted time for the last two meetings was not included. Attorney Duhy commented for the record that neither she or Mike Simon received the email today. He provided a copy. He hoped this would be resolved easily at the meeting and perhaps at another time they could return and build a project. Motion Board Member Katz moved to approve option 1, to take no action and proceed with legal remedies in order to obtain the property deed under the terms of the reverter and the agreement addendum. Board Member Casello seconded the motion. 4 • • - w v w Meeting CRA Board Boynton Beach, Florida I 9 2018 of doing business. They were not costs the CRA could say because they were receiving the building back, that the CRA was benefitting from the cost. Shovel Ready owned the building for the last two years, and the CRA cannot reimburse for those costs and they were not verifiable as hard costs to her. Attorney Carney explained they were costs attributable to developing the building. Plans cost money and plans are submitted in order to obtain the permit. They are real costs. Chair Grant noted the invoices say professional fees and there was no other explanation for the $15,000 and $7,000 except for professional fees. There are hard costs in the sense of what was the cost of the construction material and the labor used to improve the property without a permit. The architect provided services, which totaled $50,000. He understood the fees were hard costs because the property was not developed and no one can develop a property without a permit. The monies were spent in anticipation of building the property, but the permit was not paid on time. There was a $5,000 fee paid to a man who also went to the City. There were taxes and insurance costs directly attributable to the project. Board Member Katz was disappointed for another meeting and there is an imminent request for a third or fourth extension. This time the extension is to provide for evidence in a failed business venture should be borne by taxpayers and residents in the CRA. A group of individuals entered into a business venture and failed from the onset. The board regularly sees people during the course of their work and something happens, but they show work and a tangible investment and groundbreaking building of the property and then the Board renegotiates a term to allow them to finish the project because they demonstrated their intention to complete the project. Board Member Katz thought this project was different than that. Nothing was done. No good faith was shown and the contract was violated at least three times or four as the deed was supposed to be returned a month ago, and the expenses are not properly shown. In the free market if a business fails, the taxpayers are not responsible. He did not believe bailing out a couple of millionaire clients should take precedent over investing this month in actual redevelopment. He recalled a few months back a resident from the Heart of Boynton came to the CRA who got financing from the CRA and she asked to renegotiate because the house she lived in was nearly uninhabitable because of the violence. The CRA renegotiated that contract. She came back again to renegotiate and they rejected the request under the notion they signed an agreement and already worked with her. Now doing the same thing for a developer and millionaire clients. They made promises to right the violation and here they are held hostage. The deed legally was supposed to be returned but they will not return it. The sum costs are for a failed business venture. Between the two scenarios, it would be an inequity. Board Member Katz had moved to proceed with legal remedy and he will not give one cent to compensate wealthy business owners who failed to do what they were supposed to do. If they had given this money out freely, a precedent would be set. He reiterated the Board rejected other people who were far more deserving of as much if not more 6 Meeting Minutes CRA Board Boynton Beach, Florida July 10, 2018 money from the CRA and he will not offer one cent. The legal remedy, which Attorney Carney agreed not to pursue in the last addendum to the contract, they would not force this into legal action. If the lies could build the property it would be 10 stories tall Mr. Carney explained it was Mr.Labob who made the comments. Board Member McCray opined this project has been a sore thumb since they took possession of it. Mike Simon explained the acquisition in 2006 was $850,000 and the CRA spent $50K to $60K in architectural fees to create the CRA's office design, which did not happen. He estimated the CRA was in for about $1,000,000 over time. Board Member McCray asked if there was any way that this property could be used as part of the Town Square project. Lori LaVerriere, City Manager, explained the project could be acquired by the developer possibly. It is not currently in the plan, but a private sector developer could augment the Town Square. Chair Grant asked about the cost of legal proceedings and learned there was $46,000 in the project fund legal line item in this fiscal year and there is a prevailing party provision in the contract if the Judge is inclined to award them. Vote The motion passed 3-2 (Chair Grant and Board Member McCray dissenting.) B. Consideration and Discussion of Fiscal Year 2018/2019 Budget Mr. Simon advised staff provided the Board with agenda backup. The first page gives an overall perspective of Tax Increment Revenue, Debt Service, General Fund and the project fund. Mr. Simon offered to give a brief summary on each line item unless the Board wanted to discuss items such as special events or marketing. Board Member McCray asked why there was a drop in TIF. Mr. Simon explained there could be a formula. The CRA tried to stay flat. In 2020/2021, it starts to climb back up. He thought there may be a mathematical error in the formula for future year projections. For 18/19, as supplied by the Property Appraiser, the TIF is $12,421,686 for the year beginning October 1, 2018 to September 30, 2019. Board Member McCray noted the amount was flat from 2021 to 2030. He asked if there was a problem as there was a drop and then it went up. It was noted the fiscal year 18/19 figures were provided by the Property Appraiser, but not the 19/20 figures. The decrease of $150,000 does not affect this year. Chair Grant noted there was a $450,000 increase from last year to this year, and asked if they could assume the same increase over the next few years. The formulas are based on staffs, input of a very conservative gain over the next 30 years. It is not representative of any 7 Meeting Minutes CRA Board Boynton Beach, Florida July 10, 2018 factual number from the Property Appraiser. Chair Grant commented this has nothing to do with this year. Board Member McCray objected and commented the public does not know anything about the formula. Right now it is not accurate, and he was fine with assuming the additional $450,000 going forward. He only wanted to know why there was a drop. Ms. Hill agreed to provide the information the next day. Mr. Simon reviewed the Project Fund Allocation spreadsheet and advised the Town Square takes a big chunk of next year's budget. The carry over per the Property Appraiser is about $6,170,803. Rollovers in the current fiscal year Project Fund, of the current projects in the current budget was $340,909 that were unencumbered. He rolled it over resulting in a total Project Fund as of today to allocate is $6,511,712. The Town Square project funding was committed and was projected out until the CRA Sunset in 2044. For the fiscal year commencing October 1, 2018, the CRA committed $3,700,000 to the Town Square. The balance to be allocated was $2,800,712. Vice Chair Romelus recommended instead of working down on the spread sheet, they go across. She also suggested choosing one important project per Board Member and then allocate the funds and then move funds around. Vice Chair Romelus favored keeping the $370,000 for the Neighborhood Police program and supported increasing the economic development grants allocation from $300,000 to $500,000. Board Member McCray supported the MLK Corridor, but felt $300,000 was not enough and wanted $500,000. Currently there was $1.2 million dedicated this year for the Corridor that would rollover. The additional $300,000 would bring the amount to $1.5 million Board Member Katz noted Professional Development Services, Architectural, Engineering and Legal expenses are required and have to be allocated. He asked if they could allocate the $150,000 for those costs and learned they could. He noted the CRA acquires a good amount of property. There was $340,000 in the Property Acquisition line item that was unspent this year. Any properties under consideration for purchase would not exceed the $340,000. Ms. Hill explained last year the Board allocated $766,435 for property acquisition. Staff was requesting to allocate $492,000 be allocated which Board Member Katz supported. Chair Grant supported the Community Caring Center acquisition for $250,000. He was aware they received a variance, which will increase the value of the Cottage District by not having a commercial location in a residential area. He also went to the Boynton Beach Dive Center to learn about the Line Fish invasion. He also went to the Health Aquatic Marine Institute to learn more about the coral. He commented the CRA did a poor job advertising the dive industry in Boynton Beach. He thought a tournament was needed to accentuate what they have in Boynton Beach. The industry is good for restaurants and tourists. He wanted to add $10K for a Marina/Dive tournament event. 8 Meeting Minutes CRA Board Boynton Beach, Florida July 10, 2018 Board Member Casello noted the Community Caring Center acquisition for$250,000 and now they have to relocate it. Chair Grant suggested the relocation of the Center be part of the MLK Corridor. Board Member McCray commented he would not consider it, but it was the will of the Board; he was fine. He wanted the money for the MLK Corridor redevelopment to rollover. He wanted to ensure there was enough money to do what the Board needed to do. Board Member Casello commented there was $519,000 for special events. Last year, the Board allocated $572,000. Ms. Hill advised there was $20,000 remaining to be allocated in the budget but they still had marketing, the historic Woman's Club and harbor master building to address. Board Member Katz pointed out there will be maintenance issues as deferred maintenance would be most costly down the road. He agreed economic development grants are very successful, but since it is more like the Board did not know and they are funding potential businesses, the budget may be trimmed to pay for the maintenance costs. He hoped with the development downtown and 500 Ocean which would stimulate natural business growth, the need for incentives may slightly decrease. The Board has to free up money for maintenance. Mr. Simon agreed. If they allocated $220,000 from various accounts, it would fund the Woman's Club. There was discussion on reducing economic development by $100,000. Chair Grant suggested they could only allocate $100,000 for the Women's Club this year and make improvements in steps. Board Member Casello wanted information on the Marina harbor master and slips as the Board had just made improvements. Mr. Simon explained there has been ongoing maintenance on the site for the harbor master building on an as-needed basis due to the settlement of the pavers near the entrance. There are adjustments in the land behind the sea wall and some soil subsidence is in the area where most pedestrians are moving has occurred. There are adjustments being made behind the seawall that Marina Village and Banana Boat is dealing with. The CRA is always adjusting the height of the pavers to avoid trips. The building is on pilings, but the area around it moves which throw the pavers off. They can replace pavers with a larger sod area, making a smaller walking path without impeding open space or areas for the boat parade. The Board could ideally add railings to the building. Mr. Simon thought it would be $30,000 to $35,000 this year. This condition occurring was unknown to the Board when it was designed. There was agreement to allocate $40,000 Vice Chair Romelus suggested the MLK Corridor line item was like a savings bank account for the project. There are pressing items and she suggested reallocating some of the additional funds as the $1.2 million would rollover. She favored allocating $200,000, and not allocate $300,000. Board Member McCray did not support the suggestion and commented the area has been neglected. He understood the money kept rolling over, but when it is time to develop 9 Meeting Minutes CRA Board Boynton Beach, Florida July 10, 2018 something he wanted the money there. He noted now they are talking about the Community Caring Center coming and some of those funds would go there. Board Member McCray commented there is no money for a community garden on NW 6th Avenue and the City removed a lot of drugs and other nuisance activities there. The City has a garden club. He asked what do they do and what is their business. Chair Grant responded it is a non-profit organization and the garden is by Forest Hill. He gave them $500 from his community support funds. The CRA has a property right next to it which could be used for an affordable house. Chair Grant thought of a community garden, but it was up to the Board to decide what to do with an 8,500 square foot garden. Board Member McCray supported keeping everything trimmed and free of trash and debris. Vice Chair Romelus agreed to fund $400,000 for economic development grants and also to decrease MLK to $400,000 to free up funds for other items. There was agreement to do so. There was $80,000 remaining, but there was no money for marketing and Chair Grant proposed to put the funds there. Vice Chair Romelus suggested reducing the property acquisition line item from $492,000 to $400,000. She asked if the Board expected to purchase many properties in light of the construction of Town Square, the Cottage District and MLK. Mr. Simon responded there were no properties identified for acquisition this year at this point. Board Member McCray wanted to clarify not all the funds are going to the Town Square. Vice Chair Romelus did not believe there would be a lot of property acquisition. The CRA just acquired the UCC Church and would not neglect everything else due to the Town Square. Board Member Katz questioned if funds were allocated for the Woman's Club and Harbor Master Building, when would they move forward with those projects. Mr. Simon explained the Woman's Club projects would include refinishing the wood floors and interior and exterior painting. He commented the Board could contemplate painting the interior this year and the exterior next year. Currently, the building was having the roof replaced and some railings needed to be replaced. If reducing the line item, there was about $165,000 to $180,000 worth of repairs at the Club that could be done this year. Board Member Katz suggested pushing some of the maintenance projects back. It would be better to ascertain if there were left over funds from property acquisition or MLK and revisit the items again. It was noted there was an RFP for MLK Corridor due on August 20th and the Cottage District RFP due July 17th. The Board will know by September if there is interest in the MLK Corridor, and August if there is interest in the Cottage District as presentations will occur then. There will also be adjustments made each month to existing accounts that would add unencumbered funds to various allocations. There may be additional funding identified at the August meeting. 10 Meeting Minutes CRA Board Boynton Beach, Florida July 10, 2018 Board Member McCray asked about Ocean Breeze East, and if there were funds allocated and learned there is $567,500 which the Board approved in the current fiscal year. Chair Grant wanted to talk about the Blarney Bash as it was usually held on a Friday. He wanted to continue to hold the event on a Friday and noted this year it will be held at the Marina. Mr. Simon explained the event this year was projected to be held between US 1 and the third street on Ocean Avenue in front of Hurricane Alley, 500 Ocean and over the tracks and the Dewey Park area. Vice Chair Romelus requested to put the remaining balance towards the non-profit grant. Board Member Casello asked if the additional parking on E. Boynton Beach Boulevard was by the Church the Board just acquired and learned it was not. It would be across Federal Highway on E. Boynton Beach Boulevard heading towards the Promenade Walkway and Pete's Pond. The Board would piggy-back on a project the City was going to do with landscape islands, but given the Ocean 1 status, it could be something pushed off, but there will be additional parking in that area. It was potentially$125,000 this year, which was moved to the US 1 Corridor project with FDOT. The $125,000 was to match the $75,000 the City had to replace the existing landscape raised island in the strip from Boynton Beach Boulevard east to Marina Way at the east end of Boynton Beach Boulevard. Board Member Katz wanted to earmark that money for that project and commented there could be a couple extra hundred thousand dollars at next month's meeting. Board Member McCray noted the budget could always be amended. Chair Grant asked the Board if the CRA Advisory Board would review the budget and learned they would and they will provide feedback at the August meeting. The allocations were as follows: Town Square - $3.7 million MLK Corridor Redevelopment & possible Community Caring Center relocation - $400K Property Acquisition - $400,000 Economic Development Grant - $400,000 Neighborhood Police Program - $370,000 Special Event - $519,000 Marketing Business Assistance - $80,000 Historic Woman's Club of Boynton Beach - $100,000 Marina - $40,000 Professional Development Services - $150,000 Community Caring Center- $250,000 acquisition Non-profit grant - $92,702 Marina Dive Tournament - $10,000 11 Meeting Minutes CRA Board Boynton Beach, Florida July 10, 2018 C. Boynton Beach Boulevard Streetscape Improvement Project Update Thuy Shutt, Assistant Director, presented this item and explained the item was before the Board on January 18, 2018, for 50% design process drawing and probable cost estimate. The project is at the 60% completion level. Staff had presented the Board with the lighting and landscape palate and the pavement. The Board selected the wave pattern and staff was asked to bring back various treatments for the pavement for the colored concrete the Board selected. Staff also provided capacity information for the FDOT interchange resolution for the bridge enlargement. The color concrete staff was asked to bring back was to look at the pattern and costs for an uninterrupted wave, wave pattern with gaps, and the wave pattern at intersection and corners only. Ms. Shutt advised there was an update to the amounts listed per the design treatment. The Board had asked staff and Consultant Kimley Horn to look at the remaining costs from the CRA project from US 1 to NW 3rd, but staff wanted FDOT to calculate the remaining costs, which included the blocks under the FDOT project which was NW 3rd to the 1-95 Interchange, which she could review. The cost for the continuous wave was $159K. With gaps, the cost would be $135 , and the corner and intersection would be $52,500. On March 2"d, staff and consultant submitted a grant to Transportation Planning Agency for a local initiative grant, for $2.2 million from the Federal Highway Administration Funds. The CRA is fourth on the list to receive funding, but it has to be reviewed by their Technical Review Committee and Citizen Advisory Committee in September. The final decision by the TAP Board will occur on September 20th and staff will know how much the CRA will receive. The funds will pay for beautification of complete streets, which includes a reduction in the lane and provisions for bike and pedestrian enhancements, lighting and landscape nodes. She explained the bad news is their grant is based on a fiscal year and is a five-year program, meaning the funds will not be available until 2023. Staff included information in the meeting backup on the grant process and the Board's application. The 60% plans that were submitted to the City received some comments from the Utilities and Engineering Departments. Mr. Johnathan Hay, Kimley Horn was present. The action requested was Board approval of one of the three design concepts. Mr. Simon explained the joint application by the City and CRA was a significant step. The application was a lot of work, which he thought would pay off. Mr. Jonathan Hay, Consultant, Kimley Horn reviewed the concepts. The treatment cost was 15 a square foot, using white concrete to express the blue color the best. A blue inorganic colorant would last longer. The cost from 1-95 to US 1 for just the colored treatment alone was $510K for the wave. The gapped concept was about 390K and the intersections and corners is $180 . Maintenance is regular sweep and clean. Pressure washing using low pressure under 3,000 PSI to pressure clean was adequate. A water- based penetrating sealant should be used every three years to keep the color vibrant. Mr. Jonathan could provide an estimate 12 Meeting Minutes CRA Board Boynton Beach, Florida July 10, 2018 Chair Grant liked the gaps somewhere in the middle and thought the Board should use some sort of a design to identify bus stops. The pattern would not be used on driveway aprons and entrance and exits. Board Member Katz liked the full wave. He commented the road will develop itself and have newly formed commercial frontage. He supported creating a draw for Boynton Beach Boulevard. Board Member Casello requested an estimate on the maintenance cost, which Mr. Hay agreed to provide. This grant award was FDOT accepting the cost of the roadwork, which would free up funding to do other customizing, placemaking and entryway pieces. The grant requested $1.9 million. The reason they awarded $2.2 million was because there was some negotiating back and forth for additional lighting. The FDOT will pay for what is currently there, but they will not for the additional decorative pavement. If they did not have the FDOT grant, the cost would be $ 2.7 million. The CRA cost share for the $2.2 million, the local non-participating item would be $538,653. This will free up a lot of funds. The total estimated cost for the project was part of the $500K. Staff also submitted a federal grant for$600K to cover some of the sidewalks, which they have not heard back. If successful, staff would have to look at compliance requirements because their cycle is different. Staff would try to align the CRA costs for some of the grants so dollars could stay locally. The total cost of the project was $2.7 million. Vice Chair Romelus recalled the project would cost $11 to $12 million and was informed that price was for the entire corridor. Due to FDOT planning on doing some work, those estimates were reduced to $2.7 million from 3rd to Federal Highway based on FDOT calculations which will be available in 2023, and perhaps may receive another$600,000 from the Federal Highway Grant. Staff will learn if they will receive the Federal Highway Grant funds in September. It was noted the$2.7 million does not include the decorative pavement, only the concrete. If the Board opted for the full wave pattern, the amount would be $350K from 3rd to U.S. 1 in addition to the $2.7 million approximately. Intersection only would be about$130,000 and the gap pattern would be about$250,000. If the wave pattern started from 1-95 all the way to U.S. 1 the cost was about $510. Motion Board Member Katz moved for the full wave. Vice Chair Romelus seconded the motion that unanimously passed. D. Sara Sims Park Project Update Ms. Shutt reviewed the CRA retained Kimley Horn for the Sara Sims Park improvements at a cost of $116,600 and advised the plans are 90% complete. Some protraction 13 Meeting Minutes CRA Board Boynton Beach, Florida July 10, 2018 occurred in order to value engineer the project and the City wanted to partition the one bid breaking down the scope to allow smaller entities to bid. Many of the items could be self-performed by the City, who would act like a general contractor which would produce some cost savings. The Board was being requested review and comment on the plan so staff could make the final revisions to the plan and distribute it to the public to ensure they are aware of the project and the design. Board Member McCray requested clarification about the different time lines. The City and the CRA both have a different timeline and the public has a different timeline. Ms. Shutt explained the CRA's timeline was the overall project from start to finish. Gary Dunmeyer, City Engineer, explained the project would start August 1 st, and continue to May 3rd of next year. The park was estimated to open May 3rd, but there was still another month of punch out. There was no discussion from the Board regarding any modifications. Motion Vice Chair Romelus moved to approve. Board Member McCray seconded the motion that unanimously passed. E. Consideration and Discussion of the Letter Submitted by the Community Caring Center Boynton Beach, Inc. (CCC), for their property located at 145 NE 4th Ave, Boynton Beach, Florida Mr. Simon commented the request by the Community Caring Center is to sell property to the CRA that is in the Cottage District and to use those funds to relocate and build a new 9K square foot building that would cost about $2 million to build. The funding they accounted for was about$850K on their own funding,which left a gap of about$1.5 million which they are looking to the CRA to subsidize. The new facility is on land the CRA and City jointly own, in addition to the roadway to be constructed between NE 9th Avenue and MLK Jr Boulevard. Mr. Simon did not have an estimated cost for the road, but could follow up on cost of street improvements. Currently there is no road, sidewalks or drainage of any kind and it would be an improvement on the corridor. Board Member Katz liked what the Community Caring Center does, but could not comprehend allocating $1.2 million for a single entity non-profit in addition to annual funds that are allocated or obtained through grants. Hedid not know how much has been given to any one entity. Staff only allocated $90K for other non-profits. Board Member McCray agreed. Sherry Johnson, Executive Director, Community Caring Center, noted there was a $1.2 million gap. Board Member Casello noted the proposed building was reduced down to 9K square feet and they currently work in slightly more than 3,800 square feet. The Secret Garden Culinary Small Business Development Center is about 3,500 square feet and the social service office is about 1,600 for a total of 5,800 square feet. They need twice the 14 Meeting Minutes CRA Board Boynton Beach, Florida July 10, 2018 space, but did not think with the building's parking restrictions, could be more than two floors and 9,000 square feet. They need the space because they moved forward with the culinary small business development center, which is currently producing jobs and moving small business into retail space in the CRA District. The other project is with the senior care program, which was being duplicated in other communities this year. The Center has been handling senior meals, which is expanding to a contract for the Chronic Meals program and they are working with a health care agency. They will be producing about 54K chronic meals and the need for kitchen space is intense. They contracted last year for job training with the County and have food preparation and culinary training programs. The perception of being a small organization in the HOB that provides food and rent and utility assistance is no longer characteristic of what they currently achieve. Their organization is huge, impacting thousands of people with services and achieving tremendous results. To accommodate the 20 to 26 small business incubators they have and for them to grow, expand and hire employees is huge. The need for a kitchen to accommodate the job training programs, opportunities and the job fair is increasing. They need to be able to produce meals. The senior care program assists seniors to age in place and food is one of the elements to do so. There is a waiting list in the County of over 6,000 seniors that with all the agencies in the County providing meals, they cannot be reached. They are working with the United Way to develop ways to address those needs. As they move forward with the senior care program, it relieves the tax burden from citizens as it is a huge tax burden to place seniors into assisted living, and particularly low income citizens. Board Member Casello thought this could be accomplished in stages. Ms. Johnson thought the ground floor was substantial and they could only push the footprint out from 50 to 100 feet and all of it needs to be used for kitchens, walk in coolers and freezers, some for the food pantry and the ability to do mass food distribution. There is still no place for the offices. They need space for the counselling and emergency assistance they provide, the online applications and staff meetings. They will need another building to have offices. The project will take two years and Ms. Johnson was not expecting all in the funding in one year's budget. They will negotiate this year and set up closings to acquire the property and get everything titled and then they will be fundraising and submitting grant applications. She explained grants take some time to be funded and actual construction would occur in 19/20. The closing on the purchase of the Caring Center and acquisition of the three lots offered would be stage one in year one, which could take place in this fiscal years budget, and would be about $750K. The next year, as grants come in, they would begin their site plan, and some of the gap financing requested could be used on NE 3rd Street for sidewalks, lighting and the road. She thought there may be a site development grant, which could cover some soft costs. She thought there may be permit fees that could be waived, or unification of title She wanted to see if there was some way in 2019 there may be a site development grant they could apply for in the second year and as they begin construction some permitting fees could be waived as 15 Meeting Minutes CRA Board Boynton Beach, Florida July 10, 2018 REMENNEEMEMEENNEM well. She requested the Board brainstorm and look at the plans for 18/19 and 19/20 and 20/21. Board Member Casello asked if the request could be accommodated a little each year. Mr. Simon suggested the project be viewed as a whole project and not a grant form or some type of special assistance. It would be viewed more like a purchase and development agreement and the development of the location for the Cottage District and the MLK Corridor. He recommended the Board consider all of the elements the Board would like to contribute over the next year or two that would be written into the agreement for the acquisition. There would be timelines and additional assistance if thresholds are met. The CRA is going through the process of the alleyway abandonment of the alley to the east of the property. Staff was requesting the property from the City and would want to create a Unity of Title and the CRA was doing boundary surveys, roadway surveys, and there is a lot of work on the front end that could be shared as a development. Some indirect costs could be reduced. Attorney Duhy explained the statute was clear in performing redevelopment efforts, relocation of businesses, non-profits and individuals is permitted. She viewed the request as a relocation cost not separate and apart from the way the Community Caring Center appears before the Board as a non-profit. Structuring the request as part of an overall consideration of a purchase is the better way to go, but the CRA could time the payment over the course of years in the agreement. Chair Grant explained the Board just finished a tentative budget and allocated the $250,000 to the acquisition and proposed they move the relocation as part of the MLK corridor. He wanted to hear the recommendation of the CRA Advisory Board because if they include the figures they allocated to the MLK Corridor at $400K and the $250K acquisition fee, it is not far off from $750K. Vice Chair Romelus asked if she sought funding from the County or other entities. Ms. Johnson explained they have been laying the groundwork for that over the year by meeting with the various Commissioners and supporting additional grants that could be made available to them. Some of their programs were subsidized by fundraising. As the grants come in, it would alleviate and add to their fundraising efforts. There are three foundations they received funds from in the past. They were significant in raising millions for the Lord's Place several years ago and she has been in contact with two of those funders. Another potential revenue source would be the Cresky Foundation for bricks and mortar. She met with a representative of the Cresky Foundation. It would require participation and collaboration regarding the site from the City and County before they would consider funding. The amount could be as much as $250K. She pointed out the CRA owns two lots, the CRA was purchasing the Community Caring Center's property in the Cottage District, the City owns one lot and giving it to the CRA for this project establishes that relation and justify Cresky becoming involved. 16 Meeting Minutes CRA Board Boynton Beach, Florida July 10, 2018 Ms. Johnson also received a recommendation on Section 108, but learned they were not eligible to the extent the county could provide funding for some of the programs it would alleviate fundraising. She agreed with Board Member Katz it was difficult to envision and should be thought of as a whole project. The county has an acquisition program for sustainability but the City is an entitlement City, which renders her ineligible. There is also a non-profit on financing, but it would need a City CDBG pledge. She was unaware if there were any other programs. Board Member McCray commented they have funded the Community Caring Center with Community Development Block Grant (CDBG) funds and there are other organizations they help. He did not want to give all the funds to the Community Caring Center. Ms. Johnson understood and pointed out CDBG funds would not be eligible to used. Chair Grant recommended assigning it to the CRA Advisory Board for part of next year's budget. The appraisal they had was $172K and they were in process of updating the appraisal. Board Member Katz noted the item says $750K and it was clarified it was $750K for the purchase and $250K for the site development. Mr. Simon explained the acquisition by itself would never be supported by staff at $750K. It would be supported at the $250K mark. Board Member Katz thought more information was needed and possibilities explored. He liken it to a non-profit, subsidized government entity. The Secret Garden is in a commercial location and contributes over $12K a year in taxes. If it is all non-profit, the City will not receive any tax return on the property and the land. If some elements were for profit, there is a taxable value the CRA could get back in the future. Ms. Johnson explained they have been running that idea and the potential from the Chronic Meals program will provide some of that income. It would be a small amount in the beginning and it will help to pay staff, but when they looked at who was providing Chronic Meals, and their first meal for a health care agency will be provided to renal failure patients. They will later provide meals according to chemotherapy protocols. In years two or three, they may have to become a for-profit agency and separate from the non-profit component of the agency. Board Member Casello noted the Community Caring Center has been in the City for over 30 years. He understood the importance of tax dollars, but did not know how to put a price on what they provide. He supported the CRA Advisory Board reviewing the item. Everything is negotiable and the item will return to the Board next month. 14. New Business A. Consideration of the Rental Agreement with the Boynton Beach Garden Club for FY 2018/19 Meeting Dates at the Historic Woman's Club of Boynton Beach 17 Meeting Minutes CRA Board Boynton Beach, Florida July 10, 2018 Board Member Katz commented when the CRA acquired the Woman's Club, he did not anticipate the Board would review every agreement and asked if this could be delegated to staff. He did not want to review lease agreements at every meeting. Chair Grant commented three organizations use the Woman's Club. The Boynton Beach Garden Club provides in-kind services Board Member McCray wanted the president to come to the Board and inform them what they do, Motion Board Member McCray moved to table. The motion died for lack of a second. Board Member Katz preferred if the CRA employees dictated rental agreements for CRA properties under these purposes. Mr. Simon explained under normal circumstances, if someone wanted to rent the building for weddings, the Board would not review the agreement, but any entity requesting a waiver of the fee schedule and policy for local and non-local entities, other than providing staff with that ability, would be a policy decision. He queried if the Board wanted to change its policy for this organization or if they wanted Mr. Simon to review. In this instance, the Woman's Club wanted to use the building for 18 meetings at a cost of$8,100 next year. The Board initially approved 11 meetings, but Mr. Simon pointed out the Board did not acquire the property at the beginning of the fiscal year and the additional six or seven meeting would in included in the first rental agreement the Board approved. He was unaware of any meeting that would exceed 60 people or of any activity the Garden Club was pursuing as part of an inkind contribution regarding the maintenance at the Woman's Club and they stopped any work they were doing. The request was to renew the agreement providing the same free opportunities. Motion Board Member Casello so moved. Board Member Katz seconded the motion that passed 4-1 (Board Member McCray dissenting.) B. Consideration of Use of the Historic Woman's Club of Boynton Beach for Two Community Caring Center of Greater Boynton Beach, Inc. Events Mr. Simon presented the item for two events focused on senior care. The cleaning fees for the two events was $200 each and the value of the two events was $900. Motion Board Member Casello moved to approve. Board Member McCray seconded the motion that unanimously passed. Chair Grant clarified the Board voted for option 1. 18 Meeting Minutes CRA Board Boynton each, Florida July 10, 2018 C. Consideration of Award and Contract for Responses to the Request for Proposals for Graphic Design Services Tracey it Coffey, Marketing and Business Development Specialist, explained in the past, the CRA has used services obtained through a request for quotes. There are three entities that provide graphic design, video and photography services for the CRA. Staff wanted a more innovate and comprehensive approach to marketing and economic development activities, which can be done by bringing events to various CRA District locations to highlight local goods and services available as opposed to having events at one location, versus tourism-related activities. Marketing and promotional items will need to be developed for the Historic Woman's Club and the Boynton Harbor Marina. Staff anticipates the expanded community strategy will result in more outside graphic design needs. A Request for Proposal was issued for ongoing design services on an annual basis. The RFP was issued and advertised on June 11, 2018, and the deadline was June 25, 2018, by 3 p.m. Ms. Smith-Coffey reviewed the scope of work and advised 12 proposals were received which staff reviewed and scored She reviewed the mandatory required qualification and how the RFP was scored. The top four respondents' samples were reviewed as follows: Damn Good Agency with a cumulative of 471 points and cost proposal of $87,975, and the firm is located in Delray Beach; Delray Fine Design scored 451 points and submitted a cost proposal of $34,465, and is located in Delray each; Quibick Inc scored 473 points and submitted a cost proposal of $96,400. Quibick Inc. has done work for Martin County, but is located in Oklahoma; and UP Media scored 411 points and submitted a cost proposal of$40,850. UP Media has a business in Delray and is also located in Rhode Island. DG Communication is the top ranked respondent. They submitted sufficient information for staffs evaluation of its proposal, but they submitted an incomplete reference contact list which consisted of professional 11 references and years of experience. The CRA can waive the requirements if the omissions are non-material. Staff recommends awarding to contract DG and direct staff to proceed with the verification process prior to execution of the document. A draft consultant agreement was prepared for the Board. The basic terms of the contract included: annual contract with an option for up to three (3) one (1)- year renewals; a cost not to exceed $87,975 and the ability to adjust the scope of services for consistency with the CRA Board approval marketing allowance in the future adopted fiscal year budget; and a 30-day termination via written notice provision. Andrew Vogel, VU P Media, Delray each, explained the RFP required professional references to be submitted, but one agency omitted it. He asked if it was a required 19 01 Meeting Minutes CRA Board Boynton Beach, Florida July 10, 2018 with local employees. They worked for a lot of non-profits including the Boca Raton, Norton Museum and Ft. Lauderdale Museums of Art, and other cities. They worked for the City of Weston and Delray Beach, the Morakami Museum and previously the City of Boynton Beach. They have a passion for the cities where they live and they have supported Delray Beach and other local communities. What they do differently than other clients are things that are not accounted for with the responses in the RFP, which is strategy. They are a united group and they like to meet regularly to get a basis and understanding how to maximize their efforts from all sides. They believe and have a track- record they give more specially for non-profits with lower dollar amounts. That is their strength. They use critical, deep thinking to maximize growth and a direct response. They have staff members with incredible backgrounds and most of the staff has been with the agency for 11 years. It is a different type of agency environment. Board Member Casello noted the meetings come with a cost of$150, with the discount. Ms. Smith Coffey explained the CRA used them for the last four years, for the annual report and for the two years prior. Staff also used VUP for the video and annual report this year. Board Member Casello commented the scoring was close, but the price difference was significant at $53,510 a year plus $150 an hour for the meetings, versus $60 per hour from the second ranked firm. Board Member Casello endorsed team number two. Vice Chair Romelus asked why staff wanted to make a change. Ms. Shutt explained staff has to obtain quotes for each year. Last year, the annual report was printed by VUP who was able to give a better price. The contract allows staff to subtract or modify the scope. There would be one firm working for the CRA and they would know the not to exceed costs. Motion Board Member Casello moved to approve team 2, Delray's Finest LLC. Board Member McCray seconded the motion. Attorney Duhy requested including approval of contract subject to final legal approval and the ability of the Chair to sign the document.. Chair Grant asked if staff should include a 20 days before the event clause, but learned it would already be included in the contract. Vote The motion unanimously passed. D. CRA Board Discussion and Consideration of Executive Director's Annual Performance Review Chair Grant had requested Mr. Simon to provide an evaluation so the Board could discuss it at the next meeting, similar to the City Manager. No objections. 21 Meeting Minutes CRA Board Boynton Beach, Florida July 10, 2018 15. CRA Advisory Board A. CRA Advisory Board Agenda - No Meeting July 05, 2018 B. CRA Advisory Board Meeting Minutes - June 07, 2018 C. Pending Assignments 1. one D. Reports on Pending Assignments 1. None E. New Assignments 1. None 16. Future Agenda Items A. Consideration of Pathways to Prosperity's Second Quarter Reimbursement Request for the Nonprofit Organization Grant Program Revised B. Consideration of Responses to RFP/RFQ for the CRA Owned Property Located at NE 4th and NE 5th Avenues, a/k/a the Cottage District C. Consideration of Responses to the RFP/RFQ for the MLK Corridor Revised D. Budget Discussion Revised E. Approval of Board Meeting Minutes - June 12, 2018 Revised 17. Adjournment Motion There being no further business to discuss, Board Member Katz moved to adjourn. Board Member Casello seconded the motion that unanimously passed. The meeting was adjourned at 9:18 p.m. Catherine Cherry Minutes Specialist 22