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minutes 08-14-18 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD IN COMMISSION CHAMBERS, CITY HALL, 100 E. BOYNTON BEACH BOULEVARD, BOYNTON BEACH, FLORIDA ON TUESDAY, AUGUST 14, 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 cCray, Board Member 1. Call to Order Chair Grant called the meeting to order at 6:30 p.m. 2. Invocation Board Member cCray gave the invocation. 3. Roll Call All present. 4. Agenda Approval A. Additions, Deletions, Corrections to the Agenda B. Adoption of Agenda Motion Board Member cCray moved to approve. Board Member Casello seconded the motion that unanimously passed. 5. Legal A. Status of 211 E. Ocean Avenue Reverting Back to the CRA Attorney Duhy explained at the July meeting, the Board directed her to institute legal action to enact the reverter clause for the above property. Shortly thereafter, Attorney Carney advised Shovel Ready would cooperate and return the property and deed. A title Meeting Minutes Community Redevelopment Agency Board Boynton each, Florida August 14, 2018 search was done to ensure there was no encumbrances on the property during the time it was held by Shovel Ready. In return, the CRA closed for the purchase price less some closing costs and they have the executed deed, which will be recorded shortly. Shovel Ready paid for the title search. The amount the CRA paid Shovel Ready after costs were deducted was $242,596.74. 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 Board Members Casello, Mcry and Katz had no disclosures nor did Vice Chair Romelus. Board Member Katz thanked Attorney Duhy and the CRA staff for the previous item and appreciated that the CRA saved $50,000 that could now be used for other purposes. Chair Grant disclosed he met with Bradley Miller on an unrelated item not on the agenda. 7. Announcements and Awards None. 8. Information Only A. Marketing and Business Development Campaign B. Public Relations Articles Associated with the BBCRA C. Public Comment Log D. Social Media Outreach Program Update 9. Public Comments None. 10. Consent Agenda A. Financial Report Period Ending July 31, 2018 B. Finance Department Purchase Orders for amounts exceeding $10,000 for the month of July 2018 C. Approval of Rent Reimbursement Grant in the amount of$8,400 to A&D Bikes, LLC d/b/a By Cycle Located at 640 E. Ocean Avenue (Unit 21) 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 14, 2018 D. Approval of Board Meeting Minutes - June 12, 2018 Motion Board Member Katz moved to approve the Consent Agenda. Vice Chair Romelus seconded the motion that unanimously passed. 11. Pulled Consent Agenda Items None. 12. Public Hearing ® Old Business A. Boynton Beach Boulevard Streetscape Improvement Project Update on Decorative Sidewalk Operations and Maintenance Costs Thuy Shutt, Assistant CRA Director, gave a status report on the operation and maintenance costs for the decorative sidewalks on Boynton Beach Boulevard from 1-95 to US 1. The project scope is between US 1 and NE 3rd Street, which was the limit of the FDOT project. The Board had previously selected a continuous wave pattern for the sidewalk and had asked staff to coordinate with consultants, Kimley Horn and Associates and the City on maintenance costs. The staff report indicated it would cost about$70,500 annually to seal and maintain, and wash the sidewalks with an eco-friendly cleanser. The Board requested a clarification on the total amount of the cost of the improvements as it was unclear at the last meeting. The CRA was just notified they are fourth in line for TPA Local Initiative Grant. Staff included an attachment of the project's cost to the CRA and City if the project is funded through the TPA Grant or if not funded. The total, from US 1 to 1-95 will be approximately$1.2 million. The total between US 1 to NW 3rd Street will be $848,433.30. The match from FDOT would be $1,629,975.16. For the additional paving between NW 3rd Street to 1-95, which were elements above and beyond what FDOT would cover as the base of the improvement project, will be $327,147.11. Board Member Casello asked if the sidewalk had to be sealed every year and learned it has to be sealed every two to three years and this was the comparable cost paid by the West Palm Beach Downtown Development Authority when they outsourced the work to a vendor. Ms. Shutt believed it would be handled the same way in Boynton Beach. Staff took the number and divided it by three to have an annual cost. She explained the cost was $42,500, which was about $14,000 per year. B. Consideration of Pathways to Prosperity's Second Quarter Reimbursement Request for the Nonprofit Organization Grant Program 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 14, 2018 Chair Grant understood Pathways to Prosperity did not request funding. They were out of the program, and those founds could be used for next year's budget, which Ms. Shutt confirmed. He requested a motion to reallocate the funds, which were $43,077 to an appropriate line item. Motion Board Member McCray moved to reallocate. Board Member Katz recommended reallocating funds to the Economic Development Grant line item, which had been reduced in prior budget discussions. Board Member McCray favored allocating the monies to the general fund and if needed for economic development, the funds could be pulled Chair Grant commented there was no general fund. If the monies were reallocated, they would be designated for non-profit grants, which Board Member McCray was fine with. The motion died for lack of a second. Board Member Katz asked if the monies could be unrestricted funds in the budget to be allocated at a later date. Mr. Simon explained the monies had to be dedicated as a line item unless added to a contingency line item. The Board could discuss the matter later in the meeting during the budget discussion. Board Member Katz moved to reserve allocation of the funds until the budget was discussed later in the meeting. Attorney Duhy advised a motion was not needed at this point. B. Neighborhood Officer Program 3rd Quarter Report for FY 2017 —2018 Board Member Katz had questions on the activity log as there were a number of calls to New Disciples Church about drug activity and asked if the Church had surveillance equipment. Sergeant Diehl, Neighborhood Officer Program, was aware there were cameras, but did not know if they were operational. Board Member Katz requested he check since there were repeat incidents, which Sergeant Diehl agreed to do. Board Member Katz thought it would be a gesture of good will for the Church to install cameras as it is a recurring problem. The camera Sergeant Diehl was aware of was on the extreme northwest corner facing south and there are other cameras on the other side of the building; however, the problems are on the west side of the building on the gravel parking lot. Board Member Katz noted there were calls and activity regarding Habitat for Humanity homes as Sergeant Diehl had requested an additional patrol. Sergeant Diehl explained the Habitat for Humanity and Boynton Beach Faith Based Community Development Corporation (CDC) new construction homes on NW 10th had drug activity in the area and 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 14, 2018 they requested a greater police presence, which was provided. There is also a new Habitat home at 17 NW 7th Avenue, which is vacant and Habitat for Humanity said they were having problems with vagrants residing on the rear of the property. He directed Habitat for Humanity to the Crime Prevent Unit and to pull a trespass case number that would allow the police to arrest anyone who trespasses on the property after a law enforcement warning is issued. Board Member Katz noted the License Plate Readers (LP )were not operational in most of the recordings and asked about their status. Sergeant Diehl explained the LPs are mounted to traffic trailers, which measure speed. One is assigned to a vehicle and an Officer when he or she is working so monitoring times will vary. The trailers are strategically placed throughout the City and funded by the CRA. He monitors the locations so he can obtain information about the activity, which he included in the quarterly report. Board Member Katz announced he had no desire to cut funding for the program, nor did he have any criticism, but he had inquired at the last budget meeting if increasing the officers from two to three verses the associated increases in cost would have a meaningful impact. He wanted to continue the program, but suggested it be reviewed after a few years. He also wanted the new Police Chief to weigh in on the issue to see if they can increase the effectiveness of the program and see if there is a next step they could take. Chair Grant requested the Board direct Mr. Simon to speak with the Chief regarding the future of the Neighborhood Officer Program. Board Member McCray agreed, but thought the Police Chief should appear before the Board and give a report indicating what he thinks may be necessary. He may be able to offer some guidelines. Board Member Casello asked if there was a summary of how much time the segways were used and learned it was included in the report. He also noted there are large groups of youth hanging at convenience stores during the day and evenings. He asked if the Officers had opportunities to stop and engage the individuals. Sergeant Diehl responded he has. He was also at Sara Sims earlier and he and his team do so on a daily basis. They visit the Family Dollar Store, which was included in the report, as well as review activity at the various parks and established businesses and mini marts. Chair Grant noted the miscellaneous supplies line item and asked how the money was spent. Sergeant Diehl replied the only time he used the funds was through the CRA to provide give-aways or goodies at the Blarney Bash last year and for informational booklets for school bus safety for young children which were also at the Carolyn Sims Center. He thought it was about $1,500. Mr. Simon explained there was approximately $7,500 for office supplies, marketing and promotional materials and other line items to help them better do their jobs. The expenditures were included in the report. 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 14, 2018 Vice Chair Romelus asked for an example of a positive outcome. Sergeant Diehl explained last Christmas was the best Christmas with the community so far. This past quarter students went back to school. The Officers attend the graduation ceremonies at Galaxy and Poinciana Schools and for kindergarteners. They take photos on the first day of school and as they progress through the school year. He advised going into first grade is touching. The students remember the Officers are there and some of the photos show the Officers being involved at the school as well. Sergeant Diehl confirmed the program is still housed in the Carolyn Sims Center and it appeared staff was pleased they were there. He explained the Officers are not there all the time. Board Member McCray was happy they were there and complimented him on the quarterly report. Motion Board Member McCray moved to approve the report. Board Member Casello seconded the motion that unanimously passed. C. Consideration and Discussion of Fiscal Year 2018/2019 Budget Vicki Hill, Finance Director, reviewed sale prices for properties and the CRA Advisory Board recommendations. She explained the spreadsheet and that the difference in the budget from last month was $300,000 for the Model Block will roll over or be reallocated, and the proceeds from the sale of 711 N. Federal Highway was $243,500. The sale of Ocean Breeze East was $794,000. Ms. Hill advised she already placed the $32,077 for the non-profit grants into the line item. Additionally, the CRA Advisory Board had two changes, which were to take $27,712 from the non-profit grant and reallocate it for the Historic Woman's Club of Boynton Beach. The next change showed the CRA staff recommendations for the meeting and the fourth column was the Board's recommendations. There was $1,121,000 to be reallocated. Board Member Katz supported the recommendation from the CRA Advisory Board regarding the Historic Woman's Club as deferred maintenance results in increases in costs later. The original request for the Historic Woman's Club was $160,000, which was reduced to $140,000 and $100,000 was where the CRA Board landed. In addition to the $32,077, there is an $84,500 increase in taxable value in the District that could be reallocated. Staff wants to address some outstanding issues in the building and the additional funds would help. Mr. Simon thought $150,000 would cover the maintenance and repair costs, which Board Member Katz supported. Vice Chair Romelus and Board Member McCray were fine with the allocation of$150,000. Vice Chair Romelus also supported an extra $100,000 to Economic Development Grants based on the past years expenditures. Board Member Casello questioned what agencies would be impacted if the CRA reduced the funds for non-profits. Mr. Simon explained the non-profits who applied this fiscal year had their funding in place. The upcoming allotment would be a new round of allocations 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 14, 2018 and new round of applications as the funds being budgeted are not earmarked for any one agency. Board Member Casello asked if the acquisition of the Woman's Club was a drain as they thought it would be profitable. Mr. Simon responded staff could only base profits on the information the Woman's Club supplied. It cost about $60,000 to $65,000 to operate and the facility brings in $70,000 to $80,000, which did not leave a lot of money for repairs or grants. He pointed out the acquisition cost was low and other cities have similar buildings that can be a financial drain. Now that the CRA staff knows the City is not using the building for temporary space during the construction of the Town Square, Mr. Simon thought they would be fine. Board Member Casello asked about next year and what had been done to book events. Mr. Simon explained staff receives calls almost weekly to see the building, but because the needed roof repairs did not allow access to certain parts of the building, staff has pushed people away because of the roof. Staff wanted to create a waiting and visitation list. Mr. Simon explained they will heavily market the facility and there is still a lot of interest in the building as a wedding and event venue. They are in the restart up phase. Board Member Casello asked if it was financially feasible to hire a manager for the property in the future and learned it was. Chair Grant favored the staff recommendation to put the balance of the funds into development of future projects as a catch-all for the Cottage District, MLK Corridor and the Town Square, and they would not have to change the non-profit grants. Ms. Hill suggested allocating the$84,500 under Professional Development Services, which would increase the allocation to $109,500 and the rest to development of Future Projects. Chair Grant suggested rounding up the amounts. The final number for Future Development Projects was$883,712. Board Member Katz supported the decision. The Cottage District could cost more money and a budget amendment could be made to reallocate the funds. Ms. Hill read the final allocations as follows: Town Square - $3.7 million MLK Corridor Redevelopment - $400,000 Property Acquisition - $400,000 Model Block - $300,000 (Roll over funds) Economic Development Grants - $500,000 Neighborhood Officer Program - $370,000 Business Promotional Events - $519,000 Marketing Business Assistance - $80,000 Historic Woman's Club - $150,000 Marina Harbor Master Building Improvements - $40,000 Professional Development Services - $110,000 Project Related Legal Services - $125,000 Community Caring Center Acquisition - $250,000 Development of Future Projects - $883,712 Non-profit Grants - $95,000 Marina Dive Tournament - $10,000 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 14, 2018 Motion Board Member McCray moved to approve the budget. Board Member Katz seconded the motion that unanimously passed. 14. New Business A. CRA Board Discussion and Consideration of Executive Director's Annual Performance Review- Tabled Motion Board Member McCray moved to remove from the table. Vice Chair Romelus seconded the motion that unanimously passed. Chair Grant noted only he and Board Member McCray filled out the paperwork. Board Member Katz advised he met with Mr. Simon and discussed his evaluation. He thought they were in an easy position to evaluate Mr. Simon as they had a prior director and they could compare how the Board operated prior to Mr. Simon becoming the Executive Director. He had no worthwhile criticism and his concerns were addressed right away. He felt the prior director steered the Board in a predetermined way before the Board discussed the issues and he noted there has been not one single incident of that nature since Mr. Simon became the Executive Director. He was pleased with the amount of activity and projects coming online as there is a lot of activity that will benefit all areas of the CRA. He liked that Mr. Simon brought on additional staff and he has performed exactly as he had hoped. Board Member McCray had constructive criticism and only commented when Mr. Simon speaks, he would prefer less words. He thought he should delegate more to his staff as they are qualified and commented since he became the Executive Director, there has been a complete turnaround and he is always easy to access. Vice Chair Romelus echoed Board Member cCray's comments and wanted him to be more articulate and give the Board the opportunity to ask the questions. The only recommendation she had was she expected to see more strategic and succession planning and training/education for Mr. Simon and the staff to be top notch. She thanked him for his efforts and agreed he should delegate more often. Board Member Casello agreed there has been a complete turn-around. He differed slightly with Board Member Katz and his suggestion was for Mr. Simon to give more of a professional opinion on bigger projects. Since Ms. Simon became the Director, they took on the Town Square Project and the Old High School, which would have not been possible without the CRA team and the temporary Library location the CRA offered, saved the City hundreds of thousands of dollars. He gave Mr. Simon high praises. 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 14, 2018 Chair Grant echoed all the good comments made. He particularly liked the Ocean Breeze East project being converted from a vacant lot to a housing project. The goal of a CRA is to remove slum and blight and vacant land is a problem. He had heard complaints about vacant storefronts and now the complaints are rent is too high. Staff received a 3% merit based pool, which he supported and he favored the same for Mr. Simon. He noted Mr. Simon requested, since the CRA staff is not pensioned, increasing the employer contribution or match for their 457 plan. The request was 2.5% for each. He supported the request for Mr. Simon and the staff due to the amount of work they have done. Board Member Casello supported a 6% raise. Board Member McCray agreed with Chair Grant for the 3% and the 2.5% increase in employer contribution and a 2.5% increase in the employer match. Board Member Katz inquired if the Board could obtain a list of current CRA Director salaries within a 30-mile radius to ensure they are commensurate with them. Vice Chair Romelus agreed with Board Member Katz and indicated she would fall between 3% and 6%. She would like to see the documentation and then pick a number. Mr. Simon requested the Board decide if the 2.5% for the 457 B and the 2.5% for the 401 A was a separate item than his increase, to assist Ms. Hill with the budget. Mr. Simon's increase could be delayed as long as the Board needed to make a decision. Chair Grant explained this was not only for Mr. Simon, but also for the CRA staff. He explained he would need a motion for an increase in the 2.5% match and the 2.5% employer contribution. Board Member McCray noted the Board likes to make apples to apples comparisons, but did not want to start comparing and learn the Board gave too much money. He suggested exercising caution. Motion Board Member Casello moved to table the annual performance review. Board Member Katz seconded the motion that unanimously passed. B. Discussion and Consideration of Responses to RFP/RFQ for the CRA Owned Properties Located at NE 4th and NE 5th Avenues, a/k/a the Cottage District Neighborhood Renaissance, Inc. Michael Pecar, Real Estate Development Director, introduced Terri Murray, Executive Director, Carlos Toldeo, Development Project Manager, Rudy Acevedo AW Architects known for creating the Renaissance Common plans and Chuck Halberg from Stewart and Shelby who has experience with single and multi-family homes. Their proposal was to build 39 affordable homes in the mid $260,000 to under$300,000 range. The benefits of 39 owner occupied units with expendable household incomes is it will increase real taxes 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 14, 2018 by about $10 million and generate tax increments of $126,000 per year. Additionally, there will be economic development opportunities for local businesses and to hire residents during construction when openings are available. The project eliminates blighted, vacant lots the CRA assembled. Since 2011, they constructed a 13-home community in Westgate for the CRA and acquired 53 homes and other multi-family properties with 78 dwellings, which they rehabbed and put into a rental pool. Eventually 20 of the homes sold. In Lake Worth, they are building eight, for-sale townhomes for artist families and a 2,000 square foot commercial building in the West Village. They just started construction on Mango Cove, a 36-unit apartment community on Florida Mango Road and Forest Hill Boulevard. They work with local partners, which for this project would be the Boynton Beach Faith-Based Community Development Corporation, to help hire local residents. A few years ago, they received a $229,000 grant from Neighborworks, which they invested in the Model Block on NW 10th and MLK Jr. Boulevard. Rudy Acevedo reviewed the site is 4.2 acres composed of different parcels and existing homes. They are placing 39 units on the perimeter with roads creating a circulating and connecting pattern. The proposed townhomes and detached single-family, one and two- story homes offers variety and an interesting new streetscape. The style will relate to South Florida architecture through the choice of materials, colors and metal roofs. They proposed 13 off-street parking spaces on 5th Avenue and each unit has two spaces: one in the garage and one in the driveway. Most of the single-family homes have rear entry/access garages so garages are minimized. The same units are used on the interior of the property. The goal is to create a sense of community. There is a village green in the center with walkways to connect internally and externally. The perimeter has six-foot wide sidewalks to connect the community and neighborhood. The northeast portion of the property has a pocket park that was available to the surrounding neighborhoods. The two and one-story units ranged between 1,200 to 1,600 square feet under air, having a minimum of three bedrooms and two bathrooms. Two models were reviewed as well as some of the elevations. There was a difference in the rooflines, gables, medallions and details to provide variety. The development pro forma was viewed. The cost for the 39 homes, infrastructure and streetscape totaled $11,600,000. The projected sales with an average sales price of$260,000 is $10,300,000. There is a gap of$1.4 million and they are asking the City and CRA to invest by waiving water capacity fees and contributing $1.25 million for the street utility extensions, streetscapes and streetlights. They also requested the land be donated and the return would be the Tax Increment Funding of $126,000 per year. Their schedule, depending on when a development agreement was finalized, would take about four to six months since it will be processed as a Planned Unit Development, due to the internal lots they are developing. They should start construction after completing the infrastructure in October 2019, close on the for sale homes in March of 2020, and have 39 homes completed around early February 2021. Board Member Katz received confirmation the Board is to choose one applicant, and the Board is not necessarily agreeing to the concept, but would proceed with negotiations 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 14, 2018 that may further Board discussion to craft the project. He saw several positive items in the backup and the financials, and he thought it was a strong proposal. Board Member Casello asked about the plan for the Community Caring Center, which is on NE 4th Avenue and NE 1st Street and learned they would install sidewalks, curbs, landscaping and street lights. The building would remain until it was relocated. Board Member Casello asked if they would be interested in purchasing the parcel and learned there was some interest. He also noted the developer's fee was 11.5%, which worked out to about $28,000 per house; however, the developer's fee was negotiable. Chair Grant asked, in reference to the site plan, if they would bury the FPL lines or use poles and was informed they planned to use the lamp posts on Seacrest and provide new ones on the perimeter to complement the ones on Seacrest. There are overhead electric lines running through the middle of the property, which was an issue. The new homes would have underground electric lines, but he was unsure how they would address the one building that faces Seacrest. Chair Grant thought the plan was nicely presented, but needed some adjustments. He liked the developer was providing well above the open space request of 47,000 square feet that could be used to build more town homes. He noted there are some historic trees he hoped could be saved and included in the park. Board Member cCray thanked them for the financials and agreed adjustments were needed. Vice Chair Romelus had no comments. Paragon Legacy, LLC Maria Cole, Executive Director of Paragon Florida, explained Paragon is a Community Development Financial Institution (CDFI) that partnered with Legacy Community Initiatives and Pathways to Prosperity. Their traditional developer Manny Ponk from Miami Dade and VESCO, is a group of veterans that are builders who have joined together and developed Paragon Legacy. The concept is not just about community development, but development of community along the way. They believe if you give a man a fish, you feed him for a day, but teach him how to fish, they eat for a lifetime. They believe if people are given the skills and knowledge to create an industry around the talents they have, it creates an industry to last a lifetime and builds legacy in the community. Paragon Legacy addresses affordable housing in a safe and clean green environment and develops, along with community partners and small business initiatives, healthy food financing to address food deserts or any other items in the community. The project they designed for the Cottage District is the Boynton Beach Cottage Healthy Community. They designed it that way as they had input from the community and spoke to several different organizations in the Heart of Boynton. They brought their ideas to the table along with the knowledge that they live next to the single largest economic driver, which is Bethesda Hospital. Rather than designing a community that is cut off from those resources that are beyond their neighborhood, they designed a community that 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 14, 2018 participates in those larger economic drivers. VESCO is a group of veterans that are green builders of affordable housing units. They created Victory Village to address many issues that present themselves in the community. Edel Travieso, a six-year Air Force Veteran representing team VSCO and the green veterans, explained they teamed up with Legacy, Paragon and Pathways to Prosperity to bring the project to fruition. They brought the design element to the project and the know how. They approached the project from many angles. The project will be sustainable, incorporating industry. The features will include a community research and development center, have green building elements, places for events and gatherings, opportunities for water management, integrated solar energy and would include local food production. All of these elements will stay and multiply in the community. The green veterans will provide training to the community that deals with many of the green aspects used in the design and give them an opportunity to grow an industry. The project is wrapped up with services Pathways to Prosperity provides. The buildings are modular manufactured homes based on off-cycled containers, which has been successfully used in Europe for multi-level, mid and high-rise apartment buildings. The homes provide advantages as they are economically attainable, faster to build, and hurricane, earthquake and insect resistant. The price range for a is 1,280 square feet home was in the low $100,000. The houses are affordable, but it provides jobs in the community. The site plan revealed a green space concept with all the homes facing toward Victory Village so the neighbors can see each other. There are pathways, a children's park, a greenhouse and a welcome center to provide training, do gardening, have respite, event gathering and aquaponics space. There are many benefits the community, as a whole, could benefit from. Different designs were viewed and Mr. Travieso advised the homes could be made to look like any style. They are safe and affordable. Images of past projects were also presented. Ms. Cole explained in discussions how to approach the design. It was determined the community needed a sense of place. It was important to involve the community and identify people interested in working and becoming certified as energy efficiency experts, in urban farming and to create a small industry around it. They needed to review the needs of the community and as a CDFI, which acts as a bank in underserved communities, they could bring other resources to the table. The programs offered are training,job and small business training, and they wanted to create a revolving loan fund. People who want to cash checks have to spend more than 10% of that check in fees at the grocery store which could be monies that could be in their pocket. Other training like budgeting and financial literacy can be offered. Images of other communities they developed in Macon, Georgia were viewed. The Knight Foundation granted them $700,000 and they leveraged it for over $2,000.000 and with other partners, created a $200 million-dollar property. The university community and residents became engaged with one another, which is what they are seeking to do. Another of their projects from the South Florida Regional Planning Council involved training 32 homeless people who were trained in the food industry services. A caterer oversaw food service training and they 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 14, 2018 created a farm to table restaurant in the area. Other images showed community participation and involvement. Board Member Casello loved the concept. He asked when the LLC was formed and learned it was created last month for this project. They had been operating in partnership with a Memorandum of Understanding (MOU) prior to the LLC. Board Member Casello noted the proposal did not indicate completed projects as a development team. Ms. Cole responded he was correct, they have not completed projects as a LLC, but have completed projects separately and in partnership with the MOU. He asked about the container housing and learned they would need a temporary manufacturing facility to pre- manufacture most of the units because they are modular and then assembled onsite. Board Member Casello asked how they would propose to get a zoning change for temporary manufacturing zoning in a residential area and learned they would seek the City's assistance in the matter. He asked how many containers were needed for a two- story home and was informed four containers were needed. Board Member Casello asked how the containers would be brought into a residential area and learned there are companies similar to a tow truck that would bring them in. They would use the last containers to build the homes leaving the development. It was noted the homes are not built based on speculation. Board Member McCray noted Cherry Hills had shot gun homes and was an eye sore. He could not envision a container community next to the $260 million Town Square development and was dissatisfied with the presentation. Mr. Travieso explained a container is just like any other material and can be created to look like a standard construction build. They can meet all the design specifications better and they exceed all codes. Chair Grant asked if they submitted the MOU and learned they did not because they formed the LLC. (Board Member McCray left the dais at 8:04 p.m.) Chair Grant asked how much noise would be created and learned there would be no more noise than any other type of construction. He noted they do not own the entire block. Mr. Travieso explained they used a lower density in order to have the green space and the residents will get many benefits. Originally, the plan called for 15 homes, but the site can accommodate up to 23 homes. The centerpiece of the design was the 1.2 acre green space. (Board Member McCray returned to the dais at 8:06 p.m.) Chair Grant asked who would be liable if someone fell on the green space. Mr. Travieso noted part of the design was to include a park and the green vendors will operate some of the buildings such as the visiting center. The greenhouse will be staffed by people they train and hire. Chair Grant explained the problem was the land is zoned high density 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 14, 2018 residential, which will not permit a mixed-use project. It does not allow commercial. Mr. Travieso commented they could modify the design, replacing those buildings with homes and still be in the green space. Vice Chair Romelus was confused and disappointed, but excited. The intent was to create affordable homes and she liked the modular home concept. She noted they were only providing 15 to 23 units. She understood the purpose of the green space, but it seemed the focus of the RFP was lost in the concept of Victory Village, with its green space and gardening. The intent of the property was to allow for small-sized residential units to house workforce or below housing for recipients. She thought 23 homes was not enough. She liked the concept and ability to use new construction materials and think outside of the box, but expressed the site plan does not fit the intent of the RFP. Mr. Travieso explained he designed the plans for a single mom with two kids. He agreed they sacrificed density for added benefits for the community as a whole, and that was the intent. He commented they could add twice the amount of homes. Sunrise City Community Housing Perry Ecton, Executive Director, Sunrise City Community Housing Development, explained he was the former Director of Habitat for Humanity in Broward County. He left that position and started to do business with Sunrise City who builds in partnership with the City of Pompano Beach and they constructed 23 homes in incorporated Broward County. They build for themselves and five other non-profits in a partnership in Broward County. He explained they would like to continue the relationship and move it north because there are opportunities for workforce housing in Boynton Beach. Sunrise City CHD is an 18-year old non-profit founded in Ft. Pierce and the Board President is Toby Philpart, the pastor at First Baptist Church, West Palm Beach. The development team consists of: Centrum Architect of Boynton Beach with Juliet Chept as Principal Architect and Erin Taylor is their Principal Planner who assists with economic development and government relations. Julia Charf, Managing Principal with Sante Architects, explained they are responsible for the building team. She quoted David Brooks, "Within each of us are two selves: the self who craves success, who builds a resume and the self who seeks connection, community, love, the values that make for a great eulogy." She explained the resume values are the qualifications they listed in the documents to respond to an RFP. The eulogy values are deeper, when their work embodies passion and love, and when they really connect with people. She explained the Cottage District redevelopment project can embody both values. She had previously worked on a project with Boynton Beach and she recounted her experience with Mike Rumpf, Boynton Beach Development Director. She read excerpts from a letter he wrote in support of her commending Ms. Chart on her professionalism 14 Meeting Minutes Community Redevelopment Agency Board Boynton each, Florida August 14, 2018 and work product due to her being proactive in working out and understanding the applicable City codes and standards. She was receptive to feedback, and green building principals and understanding of the City's perspective. She was happy to be back in Boynton each. She introduced Aaron Taylor who she worked with for more than 12 years. Aaron Taylor, Arc Development Global, started as a zoning planner in Palm each County for six and a half years and spent five and a half years in economic development in Palm each County. He also handles real estate and land acquisition and has a diverse, rounded career background. Mr. Ecton explained the 4.2-acre property will be used for a mixed-use infill housing development composed of single and multi-family housing units. The multi-family units will have up to three units, typically as triplexes. The middle one-story units are conceptual and handicap accessible meeting the five percent set aside for handicapped persons and the others units are two stories. There are different variations. The typical floor plans were viewed and ranged from 1,400 to 1,439 square feet. The triplex has a shared porch over the middle unit and the downstairs handicap accessible unit has access to the shared porch in the middle. An exterior version of the concept was viewed. There are single family detached units. The units mix included four single-family detached units with three bedrooms and two baths. There are 19 single-family attached townhomes with an average 743 square feet. The 19 two-story attached town homes were 1,100 square feet and there are 12 two-story attached townhomes of 1,439 square feet for a total of 61 units. They could have maxed 80 units, but opted for less density in order to create a community. The site plan was reviewed and reflected green space and interior parking. He explained it was a difficult site to develop as there were pre-existing structures they had to fit into the existing community. The total project cost was $11 million and he advised they would look to the CRA for support regarding the acquisition price that may be able to be phased in. Board Member McCray requested the location of the properties they developed in Broward County and received the information. Mr. Ecton commented they build for six non-profits. Some of the non-profits had funding stages and they had to permit the structures as the funding became available. He also advised they are not only developers, they are general contractors and they self-perform. They are residential, commercial and roofing contractors in the State of Florida and they hire locally. The project cost is negotiable. Board Member Casello pointed out the Community Caring Center was on the corner of NE 1st Street and the site plan built up next to it, but there was room to reduce some of the units to create open space. He asked if they would want to purchase the Community Caring Center and learned they would if they could get support from the Board and it made the project economical. He explained as a non-profit, he has to request City assistance first. 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 1 , 2018 Chair Grant noted Sunrise City had provided information on Section 8 Homeowner vouchers. Mr. Ecton was unsure if Palm Beach County has accepted the program, but Broward County has for three of its six housing authorities. The program allows a housing choice voucher that can be used to purchase a home. It would gross the vouchers income up along with their additional income for 15 years depending on their situation. If the holder is not disabled, they keep the assistance for 15 years. Each year, they have to recertify and the amount may change, but if disabled it would keep for 30 years for the life of the loan. It was a way to retire vouchers and transfer them to other needy families and a way for the government to assist individuals to become self-sufficient and create equity. He commented there was no equity share from HUD on the vouchers. Whatever the family gets, it keeps, as HUD would not collect any equity in the home. They have not dealt with the Palm Beach County Housing Authority, but he struggled with three housing authorities in Broward County and with two of them to get them to understand the program, even though the program is on the books. Chair Grant commented he has been to the Housing Authority and was unsure they had an executive director. He was also unsure if the vouchers would be a viable option. He liked the social space, but felt in some instances, the social space turns into a party and the middle tenant under the porch is not so happy. Mr. Ecton explained they could address it. Chair Grant asked about the parking and learned there will be two parking spaces per unit and no guest spots. There will be street parking. Ms. Charf explained they are very collaborative and wanted the development to embody everyone's vision. They encourage input and she commented it is a concept and starting point they could tweak while being sensitive to the streetscape. Vice Chair Romelus commented there was no reference to living or prevailing wages and learned prevailing wages always make a project difficult to build, but if there is a dime of federal money used for the project, prevailing wages must be paid. He cannot avoid prevailing wages if he receives funds from the City, County, or the federal level. Mr. Simon explained CRA dollars would not carry any type of federal regulations regarding prevailing wage or minimum wages, or a wage standard. It would be something agreed to by the Board and the developer. The developer explained they are more concerned about a decent living wage and a local hire. If he could reduce the wages to hire more people locally, to work on the site, they would choose that option, but they are at the whim of the Board to set the standards. Vice Chair Romelus inquired if the target sale prices were contingent on the Section 8 homeownership voucher and if the price of the homes would change if Section 8 was not used. Mr. Ecton responded the prices of the homes would not change, but they would encourage the County and Housing Authority to participate as it helps them. They wanted to do a mix. Sunrise City provides workforce housing and uses 60% to 120% of medium income, but there are some individuals at the 60% to 80% range that need to be serviced as well. Ms. Charf explained one reason they all collaborated together on the project was because they have a good track record to bring a product of this caliber at this price point. 16 Meeting Minutes Community Redevelopment Agency Board Boynton each, Florida August 14, 2018 Mr. on explained the per unit cost includes site work at$130 a square foot. In Broward they build at$85 a square foot, all in. The infrastructure underground increases the price, but it is still within market. They are contractors themselves, so there is no need to hire another contractor to do the work and have a mark-up and a developer's fee on top of that. The developer's fee is their profit. Unlike other non-profits who would have to hire a contractor and then have a developer's fee, the Board would save 10% to 15% with a non-profit and another 15% to 20% for the developers. They just take it out of the development fee and leave the non-profit fee intact as they generally give it back in down payment/closi ng cost assistance. Board Member cCray thought it was the architect brought in a letter in from Mr. Rumpf and asked if there were any other testimonials. Mr. Ecton commented the best reference they have was in Broward County from Commissioner Dale Onus as they are building 23 homes there for their CRA. Board Member Casello thanked the team for their presentation and interest in the City. The Board members ranked the presentations. While the amounts were tallied, Centennial Management was present to give an update. Lewis Swezy, Centennial Management, announced they were awarded the tax credit application from the State. They met with staff yesterday and reviewed the site plan. Their grant application was currently in underwriting with the State, who will analyze the financing, architectural components and then underwrite it to ensure the project is feasible. He did not anticipate any issues. To-date, they signed their architectural agreement with the architect, who is now working on a site plan. When it is finalized with the City, they will start with working drawings and then submit for building permit approval. He advised he would be present with the civil engineer to meet with the City. Forum Architecture was the architect. Attorney Duhy announced the following tallies: • Neighborhood Renaissance received a score of 8 • Paragon Legacy, LLC received a score of 15 • Sunrise City received a score of 7, which was the highest ranking. Motion Board Member McCray moved to approve the rankings. Vice Chair Romelus seconded the motion to approve the ranking. Board Member Katz thought Neighborhood Renaissance had the strongest proposal and their concept felt like a neighborhood. He felt the container homes and the quantity of the units was a concern. As to the density of the Sunrise proposal, 15 to 20 units may be too few and 60 units might be too many. He felt the units were packed in. He hoped some 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 14, 2018 discussion would occur as there was a one point difference between Neighborhood Renaissance and Sunrise City Homes and the difference to him was the financing. He advised they do not know what was proposed for financing for Sunrise City was legally permissible in Palm each County. Chair Grant pointed out currently the Board is approving the rankings so the Board can have discussions with Sunrise City. The Board still has the final approval. Board Member Katz did not support the ranking because his preference was Neighborhood Renaissance due to their financial surety behind the proposal, the style and he thought it adhered to the nature of the project by creating a neighborhood feel. Board Member Katz asked if the Board had issued similar RFPs. Attorney Duhy clarified the Chair was requesting the Board verify the initial ranking. The RFP did not require the Board to pick any developer. It was a method to obtain opinions. After the vote to accept the ranking, the Board can decide who they want to move forward with. Vote The motion unanimously passed. Chair Grant opened the floor to public comment. Susan Oyer,140 SE 27th Way, requested to see Sunrise City's architectural style and Neighborhood Renaissance. She favored Neighborhood Renaissance as she thought it fit with the surrounding homes and historic properties in the area. Woodrow Hay, 427 NE 5th Avenue, requested and received the rankings. Board Member Katz repeated his prior comments. The Board had previously discussed the Cottage District and he liked the Neighborhood Renaissance proposal and housing. He thought Neighborhood Renaissance had more financial certainty and awarding them would be the safest and most aesthetically appealing way to proceed. The density and design of the neighborhood by the other applicants did not feel like a neighborhood. Chair Grant commented they asked for over $2.5 million from the CRA and the City. Sunrise City's proposal was new. They could try something new and it was a payment to the CRA. There is Section 8 homeownership and the City may be the first to use it in the County. He did not think the triplexes were needed to maximize the density and thought they could eliminate some of the middle units and have duplexes instead Board Member Casello commented his first pick was not Neighborhood Renaissance due to the financing and aesthetic fit with the neighborhood. He commented Sunrise City would work with HUD but the Housing Authority did not have a Director. Board Member cCray agreed with Board Member Casello. He supported Sunrise. 18 Meeting Minutes Community Redevelopment Agency Board Boynton each, Florida August 14, 2018 Vice Chair Romelus thought the intent was to have a choice of the most amenable team to work with, she thought Sunrise met that objective. She agreed the number of units was overkill and the density could be decreased to make it more compatible with the community. She thought there was creativity in the proposal. She had never heard of the Section 8 homeownership Voucher program. It may not work in Palm each County but she thought it was worth a try. She also commented the homes cannot have a sale price of$260,000 because it was too expensive. Motion Vice Chair Romelus moved to approve Sunrise City. Board Member McCray seconded the motion. Board Member Katz asked what the route would be to pursue the Section 8 homeownership. Mr. Simon responded if the Board selected Sunrise to begin vetting the proposal to bring back to the Board and negotiate more specifics, he would spend time with them to pursue what they are proposing. Neither Mr. Simon or Ms. Shutt were familiar with the option and he was unsure it was a financial possibility. They would adjust and negotiate all they could with them regarding the Section 8 homeownership program or what their substitute financing means would be as an alternate. Staff would bring back other options to the Board if the voucher project did not supply them with funding as part of due diligence. Staff has enough information about the project's density and financing to proceed. Board Member Katz asked if the Section 8 program was not used if the price point could be maintained. The due diligence period has a 90-day maximum and a 30- day minimum. If it did not work, the Board could still approach Neighborhood Renaissance. Vice Chair Romelus understood Board Member Katz's concern, but thought it was time to try something new. She remembered asking on the record if the target sale price would change if the Section 8 homeownership Voucher was approved or not and was informed it would not. Vote The motion passed 4-1 (Board Member Katz dissenting.) C. Consideration of Disposal of Thomas Property to the City for Sara Sims Park Motion Board Member McCray moved to approve. Board Member Casello seconded the motion that unanimously passed. 19 Meeting Minutes Community eveloent Agency Board Boynton Beach, Florida August 1 , 2018 D. Consideration of Registration and Travel Expenses to Attend the Florida Redevelopment Association 2018 Annual Conference on October 24-26, 2018 in Fort Myers, Florida Chair Grant announced he spoke with one of the organizers and he will serve on a panel. Accordingly, he would like to attend. He asked if anyone else wanted to attend. No one came forward. Chair Grant noted the deadline to register was October 8t". Attorney Duhy advised no motion needed as funding was previously approved for all the members to attend. D. Consideration of Purchase of the Property Located at 106 NE 3rd Avenue Mr. Simon reviewed the property is a large vacant parcel and a half parcel owned by the same owner located behind the plaza at 100 E Boynton Beach Boulevard, situated at 103 N 3rd Avenue on the corner of Seacrest Boulevard. Staff had discussed purchasing the property with the owner and an appraisal was conducted. The property appraised at $80,100 and after emails and discussions, a price of $100,000 was determined. Mr. Simon explained the amount exceeded his authority to negotiate any further and was before the Board for direction. Board Member McCray asked what the desired price was and learned the owner asked for$250,000, which staff negotiated down. Board Member Casello asked if the lot was a buildable lot and learned the lot could not accommodate the number of units the owner felt it could and it was not a very buildable or viable lot because it could not accommodate that density a residential builder/investor would want. He suggested the Board make a counter offer. Board Member Casello asked what the purpose of acquiring the property was as the CRA does not have land abutting the property. Mr. Simon explained with the proximity to the Town Square and the condition of the property now, even if the CRA converted the land to a mini Heritage Park, it would be an enhancement as there would be no vagrants or parked cars. It could be a noticeable green space and Mr. Simon hoped the Board could work their way down the block or they may be able to assist with another developer. Board Member Casello noted the CRA cannot even take care of the green spaces the Agency currently owns, nor the medians on Seacrest. He questioned purchasing another property they cannot maintain. Chair Grant noted it is across the street from the Town Square. Chair Grant commented the Board wants to see the property have a future land use of mixed-use medium. If the Board tries to purchase it after the Town Square is constructed, the property would be more than $100,000. Board Member Katz supported a price between $80,000 and $100,000 and agreed with Chair Grant. He thought the land would eventually be a prime piece of property that may not pay off fora period of years, but a land bank permits a larger parcel to be assembled and there is money dedicated for land acquisition. Board Member Casello asked how much it costs to create and maintain a green space. Mr. Simon explained the Harbor Master building and the parking lot across the street would be maintained when the improvements are made. There is reclaimed water along Seacrest Boulevard they would 20 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 14, 2018 use and they would try to take advantage of relocated plant material from City Hall that will be destroyed due to the construction of Town Square. He estimated with grass the cost would be under$15,000. Board Member McCray supported acquiring the property and holding onto it because people have started drinking beer and liquor under the tree. Chair Grant agreed. It is a prime location where, if things do not necessarily go as they are supposed to, the CRA can use the surveillance camera to help avert illegal activities. Chair Grant asked for a motion for an amount and if it includes closing costs. Attorney Duhy requested also including giving the Executive Director the authority to enter into the contract within the terms the Board approved at the meeting. Motion Vice Chair Romelus so moved and with all included to pay no more than $100,000. Board Member McCray seconded the motion that passed 4-1 (Board Member Casello dissenting.) 15. CRA Advisory Board A. Pending Assignments Chair Grant wanted the Board to make a recommendation about the Community Caring Center letter about what the CRA has in next year's budget regarding encumbered and unencumbered funds and future development projects. 1. 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 B. Reports on Pending Assignments C. New Assignments 16. Future Agenda Items A. Consideration of Responses to the RFP1RFQ for the MLK Corridor 17, Adjournment Motion 21 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 14, 2018 There in no further business to discuss, Board Member Casello moved to adjourn. Board Member McCray seconded the motion that unanimously passed. The meeting was adjourned at 9:18 p.m. Catherine Cherry Minutes Specialist 22