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Minutes 03-13-19 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD IN THE INTRACOASTAL PARK CLUBHOUSE 2240 N. FEDERAL HIGHWAY, BOYNTON BEACH, WEDNESDAY, FLORIDA ON MARCH ! ! Steven Grant, Chair Michael Simon, Executive Director Justin Katz, Board Member Tara Duhy, Board Counsel Mack McCray, Board Member Aimee Kelley, Board Member Christina Romelus, Vice Chair 1. Call to Order Chair Grant called the meeting to order at 6:30 p.m. . Invocation Reverend Woodrow Hay gave the invocation, followed by the members reciting the Pledge of Allegiance to the Flag. 2. Roll Call A quorum present. 4.. Agenda Approval A. Additions, Deletions, Corrections to the Agenda B. Adoption of Agenda Motion Board Member McCray mov(:d to approve the agenda. Board Member Kelley seconded the motion that unanimously passed. Meeting Minutes Community Redev o ncBoard Boynton Beach, Florida March 13, 2019 5. Legal Chair Grant inquired about the letter to the Attorney General. Tara Duhy, Board Counsel, responded she was working with staff to develop a program, and afterwards they will draft the letter to the Attorney General if it is required, depending on what staff wants to bring forward to the Board. 6. Informational Items and Disclosuresby Board Members and CRA Staff: A. Disclosure of Conflicts, Contacts, and Relationships for Items Presented to the CRA Board on Agenda Board Member Katz had no disclosures. He thanked the voters and his supporters for his re-election. It was satisfying to spend another three years continuing the work the City has begun. He also congratulated those who were elected and their competitors. He announced he did not win his first election because he ran unopposed. He encouraged all to stay active and if you prove to the public you have something of value to offer them, opportunities will arise in the future. He thanked Board Member Kelley for filling former Commissioner .Ioe Casello's vacancy. Board Member McCray had no disclosures or conflicts. He requested Board Member Kelley attend the City Commission meetings. He also echoed Board Member Katz's comments. He congratulated Board Member Katz, Vice Chair Romelus and Chair Grant on their re-elections. It has been a pleasure working with Board Member Kelley and he will have comments for her at the City Commission meeting. Board Member Kelley had no comments. Chair Grant agreed with the prior comments. He congratulated all the winners, all who campaigned and thanked all who worked. He noted every voting sticker said, "I made freedom count." He announced they could move forward with the consensus of the City as elected leaders. He announced he had comments to make on item 14.D. 7. Announcements and Awards A. The 5th Annual Blarney Bash on March 16, 2019, located at Dewey Park and E. Ocean Ave from 4:00 PM to 9:00 PM Mercedes Coppin, Business Promotion and Events Manager, announced the 511 Annual Blarney Bash on Saturday, March 16th hosted by the CRA at Dewey Park and the surrounding area along E. Ocean Avenue and NE 4th Street. It is a free event from 4 p.m. to 9 p.m. Free parking is available on lots around the event site. The event will feature bagpipers, live music, Irish Step Dancers, interactive children's activities and a Shamrock costume contest for children and adults. Irish and other food options, as well as cocktails and craft beer from local breweries were available. The Avenue will have merchandise Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FloridaMarch 13, 2019 vendors including seven CRA District merchants. A Lucky Gold Hunt to put attendees in contact with CRA merchants will take place. More information was available on Catch Boynton.com. B. Rock the Plaza on April 13, 2019 at Ocean Plaza from 12:00 pm to 4:00 pm Ms. Coppin announced the above event featuring live music by Green Means Go, a rock pop band, playing top 40's music. Staff is working with plaza businesses to encourage eventgoers to go inside the different stores. The CRA Facebook page will highlight the opportunity. 8. Information Only A. Marketing and Business Development Campaign 9. Public Comments Minister Bernard Wright, Robert E. Wells Foundation, congratulated the Mayor for great win and Board Member Katz. He commented the City is still in a prophetic stage of a better everything. He encouraged the Board to pay attention to what the majority wants. If District II needs something, Districts III and IV should agree. 10. CRA Projectsin r A. CRA Economic Development Update Mike Simon, Executive Director, explained the first item provides a monthly update for the CRA Economic Development grant update and gives recognition of any new business that opens in the CRA District or that receives a Business Tax Receipt. From last month, the CRA expended $45,367 in grants since October 1$t. The balance was $507,988. A fist of grantees was includeu and the Business Tax Receipt obtained in February were listed. He commented obtaining a Business Tax Receipt does not mean the business was open and operating and they listed type of business. He pointed out the Sushi Simon and Bonds and Smolders Bakery have moved across the plaza on the west side of the Walgreen's building. B. Sara Sims Park Project Update The members viewed a visual update of the park. Thuy Shutt, Assistant CRA Director, advised the rough grading was complete, the pavilions were delivered and the pads will be poured this week and next. The restroom building will be permitted this week. The slab will be poured and completed by the first part of April. The privacy screen is up; paving is underway and the City will commence site watering next week. Irrigation will be installed in April, and then the only items to bid will be the drainage and water/sewer installation. The City will also obtain decorative fencing estimates. Board Member 3 Meeting Minutes Community Redevelopment Agency Board Boynton cFloridarc 13, 2019 McCray thanked the CRA for the screens, as the residents were upset. Ms. Shutt explained Gary Dunmeyer, City Engineer, got a good price. C. The Ocean Breeze East Project Update Mr. Simon explained the project went before the Planning and Development Board for site plan approval the last week in February. The item will be on the March 19th City Commission meeting agenda. If granted, they will accelerate construction design phase and permit submission, targeting the August 2019 commence construction deadline. D. FY 2017 - 2018 Update for the Non-profit Organization Grant Agreement with the Community Caring Center of Greater Boynton Beach Inc. Staff brought back the Community Caring Center's quarterly report for last year's allocation of $57,681. The program was to take place over six months. They started on June 12th and finished Dec3mber 31St. The quarterly and staff review reports were included and a list of accomplishments was received. A breakdown of the deliverables was viewed. The first quarterly report was included and Board action on the second quarterly report was needed. The Community Caring Center was required to provide a financial statement review of all the activities that took place. The result of the grant was 30 culinary micro-enterprises, four entrepreneurs showcases and retail events, including a job fair last fall, as well as training and certification for some of the culinary entrepreneurs. Staff recommends the Board approve their last payment of$27,737.12 for the 2nd quarterly issuance and the closeout of the grant funds from last year. Motion Board Member McCray moved to approve. Board Member Kelley seconded the motion that unanimously passed. E. FY 2017 - 2018 Update for the Nonprofit Organization Grant Agreement with Habitat for Humanity of South Palm Beach County Ms. Shutt explained this item was a similar grant allocation from last year; however, this grant allocation was for 12 months. Habitat for Humanity will ask for closeout in June. They are 75% through the giant and the next quarterly report will be in April. The Board was concerned staff was not showing the Board or the public all the progress made. The $40K grant was to pay for four units, two villas and three to six critical repairs to roofs, windows, as well as homeownership and counselling classes for homeowners. The members viewed the first duplex on NE 2nd Street. Habitat for Humanity was tiling and exterior painting. The $40K resulted in two new units, but the second duplex was slightly behind due to zoning, setback and building permit issues. The photos were taken last week. More images of the units and site prep for the two remaining units were viewed. Board Member McCray asked if the duplex was a rental and learned it was for homeownership. Chair Grant thanked Habitat for Humanity for using the money wisely. Meeting Minutes Community Redevelopment Agency Board Boynton ch, FloridaMarch 1 , 1 The CRA was receiving more than $40K in value. He hoped to get total investment to Habitat and get a calculation to see how much the $40K added to the area. Chair Grant thought if they meet the requirements, the Board should move to release the funds and staff will come back with the quarterly report. Motion Board Member Kelley moved to release funds after staff approval of the qualifications. Board Member McCray seconded the motion that unanimously passed. 11. Consent Agenda A. Financial Report Period Ending February 28, 2019 B. Finance Department Purchase Orders for amounts exceeding $10,000 for the month of February 2019 C. Approval to Maintain Contract with Ford Harrison, Global HR Lawyers for Human Resource Services Motion Board Member McCray moved to approve the Consent Agenda. Board Member Kelley seconded the motion that unanimously passed. 12. Pulled Consent Agenda Items 13. Public Hearing . Old Business A. Consideration of Grant Agreement with Habitat for Humanity of South Palm Beach County for the Boynton Beach CRA FY 2018-19 (Winter) Nonprofit Organization Grant Program Ms. Shutt explained this item requested a $75,000 allocation for this year. Habitat for Humanity was requesting funds for three new units, two of which are duplexes on NW 12th Avenue that is waiting for permits. The third unit is a single-family home on 6th Avenue NW Habitat received from the CRA a few months ago. Habitat will also conduct three critical repairs for oftertimes veterans and the elderly that may not be able to pay for repairs and for homeowner and rehabilitation classes as well as leveraging their resources with other in-kind and/or non-profit help. Habitat will adhere to the same requirements as before and will provide quarterly reports. Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 13, 2019 Motion Board Member McCray moved to approve. Board Member Kelley seconded the motion that unanimously passed. B. Consideration of the Contract for the 2019 Pirate Fest and Mermaid Splash Management Firm, Standing Ovations, LLC Mr. Simon reviewed this item. The CRA has used the planning and event firm for the last two years. This year's contract is for $41,500, which is $1,000 less than the 2018 agreement. Staff and Legal have reviewed the agreement. Ms. Coppin was available for questions. Board Member McCray questioned if staff cut anything out to receive a price $1,000 less and learned staff had requested stage management services last year, but they can have it provided by the sound engineers so they removed that task. Chair Grant requested an update of the layout at the September CRA meeting. When they send out the flyers, people will need to know where to go before they get there. The event will take place on October 26th and 27th. Mr. Simon thought the concerns were well founded, but staff intends to have less of an entertainment schedule and more of a public service announcement detailing where everything is located and where to enter, exit and park. Staff could use the CRA and City Commission meetings in September to provide some direction of what the public could expect. It will be more helpful. Board Member Kelley had ooserved going to the event the last two years there was no real idea where things were and for the youth. Her children loved the Treasure Hunt the first year and then did not find it next year until the very end. Mr. Simon thought they would provide the vendors with information and a schedule or map. Chair Grant requested a list of all the sponsors. He wanted to have a deadline for sponsorship and thought the Board should request funds now for the event. Motion Board Member McCray moved to approve. Board Member Kelley seconded the motion that unanimously passed. C. Discussion of the Goals and Objectives of the Neighborhood Officer Program Mr. Simon advised it was a Board recommendation for Police Chief Gregory to come to the Board for recommendations and assessments after he was on the job six months. He explained CRA staff, the Neighborhood Officer Program (NOP) officers, the regional Vice President for Family Dollar and the Regional Loss Prevention Manager for Family Dollar met last Monday to extend efforts to re-stabilize the store and be a good neighbor. They 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Flodda March 13, 2019 offered the NOP assistance by providing them with beverages to come in and they welcomed the attention and neighborly spirit. Board Member McCray thanked Mr. Simon for removing a bench, as people would sleep on the bench. Michael Gregory, Police Chief, assessed the program and spoke with staff and the Board. The Neighborhood Officer Program (NOP) began in 2015/2016 with CRA funds. Two officers were selected for the program, which began operating in February 2016, experiencing several achievements and successes in a short period. As a result, a third Officer was added in fiscal year 201712018. The goals were to use the community policing strategy to develop mutual t,�ust, understanding and respect between residents and the officers to reduce crime and disorder while improving the quality of life in the CRA. The three principals of community policing is to use community partnerships, organizational transformation and problem solving. Chief Gregory stressed problem solving is not just calls for service or counting statistics; it is trying to find the pattern causing these issues or the quality of life, and trying to stop the crime and the pattern from occurring. The program uses the Scanning Analysis Response and Assessment (SARA) model. There could be environmental issues, not enough lighting or too much landscaping concealing an area, which may contribute to crime. Using the SARA model, they analyze the statistics behind it and develop a response to the problem creating all the calls to create a larger scaled reduction in crime. The neighborhood officer program has a partnership with the HOB Association, Habitat for Humanity, Cub Scout Pack 243, P2P and others. They have started initiatives including Sweat and Read with a Cop, after Hurricane Irma, they were distributing over 200 bags of ice in District ll, Back to School Health Fair, feed the community in partnership with the food bank, mentoring students at Galaxy and Poinciana Elementary School, and the Book Bag Give Away. Those activities are involved with people on a one-on-one basis with residents having the greatest need. Serious crimes were trending down since 2016. In 2016, there were over 4,000 serious offenses in the CRA, reduced to 3,600 in 2017 and 3,326 in 2018. Drug related offenses increased from 2017 from 326 to 450 in 2018, but they are monitoring. As trust increases, they will report more issues. Trespass is low as was prostitution. Through partnerships, the Officers listen and receive feedback. When they met with the Coalition of Clergy, they listened and learned what is not working and what complaints they had. Feedback he received since he joined Boynton Beach was, overall the program has been successful. Some want more officers because the program is successful in a small concentrated area. Residents would like to see it expanded to cover a larger portion of the CRA and increased crime prevention services to residents and businesses, in schools and at Sara Sims Park and the Carolyn Sims Center. Challenges there were a slight lack of organization in the Community Policing Unit in the Department. There is the Neighborhood Officer Program, the Community Resource Team, Crime Prevention and Traffic units, and they have different commanders so they may not enjoy seamless communication or near or real time information sharing. There is a lack of communication integration between the units as they all have a role in community policing. There are Meeting Minutes Community vloAgency Board Boynton ch® Florida March1 , 2019 challenges to expanding the program as there is a limited number of officers to provide services in the entire city and they cannot concentrate too many in one small area. There is a lack of technology for crime reduction such as security cameras, license plate readers, shot spotter technology, analytic sensors and software to help them to have a better grasp of data, to collect and analyze. The new records system will help the Department, as they will have new tools and better ways to analyze and categorize. The next steps were contained in the meeting materials. Chief Gregory advised there will be a slight reorganization including renaming the Special Operations Section of the Police Department to Community Services. It will help the unit's purpose to be more closely identified and it will consolidate the units to have one commander. Crime Prevention will conduct crime prevention surveys, all working within the same division that is considered community services. As for staffing, Chief Gregory explained it would cost $108,000 to add a crime prevention officer dedicated to the CRA to the NOP program. Feedback he has received was they want to see more services to businesses and contact with residents on a one-on-one basis to deal with gunlocks, smart water or other crime prevention tools as well as notices, flyers and alerts just in the CRA area. He explained that currently, the two NOP officers are responsible for responding to incidents City-wide. They handle calls that take up a lot of time. Adding another officer would be an enhancement. Chief Gregory commented there will be a New Training initiative and noted the Officers have been very effective. The NOP Officers will develop and curate the curriculum to transition a Zone Officer into the NOP program to help learn what the NOP Officers do and how. They will learn where to go for resources. After the curriculum, the Officers can deploy in the zone they are assigned. They received some funds from the budget and a grant, but the Department seeks a real time crime prevention center. The information will be conveyed via a security camera or License Plate Reader to the center in real time. There will be patrol officers to address things immediately and bring the City up to Palm Beach County standards. The West Palm Beach Center just started their Center and Boca is not far behind. He would like to see funds leveraged further into the CRA. Board Member McCray respected the report. He asked if the $108K would be paid by the CRA and learned it would. He asked if the individuals that would be brought into the program were already budgeted in the Police budget. Chief Gregory responded there are 153 officers delegated to the entire City. The CRA District needs a higher level of service, which he thought the CRA should pay. Board Member McCray asked if the Police had $107K to assist with the cost in its operating budget because the CRA is already paying $370,000. The CRA expects something from the Police Department whether or not the NOP is in play because they pay taxes. It will cover the NOP, equipment, personnel and benefits for that District only. He commented taxpayer dollars are also there. An officer is assigned to each of the five CRA zones. They take everyday calls for 911 and car accidents. The City's operating budget pays for the Zone Officers. The CRA is paying 8 Meeting Minutes Community Redevelopment Agency Board Boynton cFloridach 13, 2019 for the NOP who only work in the CRA and are receiving funds from both sides of the pocket. Chief Gregory advised he could not take funds from the rest of the City to give to the CRA. Board Member McCray commented citizens expect police protection and thought with the addition's Chief Gregory discussed, there should be police funds allocated to help offset the cost. The CRA is paying $370K and the additional officer would cost$107K; the CRA would be paying $477K. He wanted Chief Gregory to find funds in his budget to help. Chief Gregory explained the presentation was to give an analysis. If the Board is unhappy with the quality of the existing services, the Board can contemplate how to change and increase the quality of services. Chair Grant asked for a breakdown of the $107K and learned $65K was for an officer and $40K for a civilian. Chair Grant explained the Board has the option of only getting a Community Service Officer or two. They can discuss what they want to see in addition to the two officers and the Sergeant. He noted Sergeant Deale's time is split between the City and the CRA. Sergeant Deale's position was fully funded by the CRA with the reorganization of the NOP into the Crime Prevention Program; the Department would reduce the burden by half and fund the other half from the City's Budget for the Supervisor's position. He would then take over supervision for the two crime prevention officers Citywide and the Crime Prevention Officer for the CRA. The Crime Prevention Officer would be in the NOP in the CRA. Chair Grant asked, in reference to car break-ins and the environment, if the effort included funds for Crime Prevention through Environmental Design (CPTED) and learned it did not. The Department was looking to use City training funds. Chair Grant requested Chief Gregory return to the Board when that is done, so businesses or residents that need to change their environment to reduce crime could do so. He thought they could apply for a landscaping grant to redesign their landscaping to make the businesses more secure. Chief Gregory noted he and Mr. Simon already had that discussion. Chief Gregory was trying to find someone to give training locally and staff would sit in on it. First staff will conduct surveys, make recommendations, and hire a landscape architect to make changes to the Land Development Regulations. There are many steps to take. The Department has two Officers who went through training and makes recommendations regarding new development reviews. It is part of the building permitting process now. When more individuals are trained, residents with overgrown environments can receive recommendations to improve safety. Chair Grant commented he would like to see the effort funded by the CRA once individuals are trained. Board Member McCray inquired, regarding Sergeant Deale's time split between the NOP and the City, if his salary would also be split and learned it would be contingent on the City Commission approving changes in the budget. Attorney Duhy explained the CRA is only able to provide money for services that contribute to community policing initiatives. Anything the CRA could legally pay for would be in addition to baseline police services. 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FIorida . M March 13, 2019 Board Member McCray favored the program and wanted a breakdown of the funds. He wanted the $107K to be reduced. Board Member Katz thanked Chief Gregory for the report. He could not recall in the past three years discussing the next steps of the program. He liked the reorganization and consolidation and that more officers need to be involved in some capacity. He had the same concerns regard escalating costs for the program as it reduces other funds to eliminate slum and blight. He supported the direction the program was moving in. Board member Kelley thanked Chief Gregory for the presentation so all could see the Police Department is proactive and engaged. It is beneficial for the community, residents and the Board. Chair Grant commented $500K in Economic Development Grants has not been used this year and if crime is reduced, it will help economic development. The CRA is paying for additional crime prevention through the NOP. He was happy with the $107K and would spend more so that existing buildings and residential complexes would use CPTED thereby creating a safer city. Board Member McCray stated for the record, out of$107K, since they are sharing the services of Sergeant Deale, that the CRA look at what they will be saving out of the $107K, and he does not mind paying the rest. It has to be legal. They do not have to get the whole $107K; they will be sharing Sergeant Deale, which is a savings there. He did not mind spending the difference, but to say here is another $107K is not spending money wisely for the citizens here in the City. He favored what all said, but not the $107K. Fur,ding will be discussed during the budget. Chair Grant noted Larry Greenberg, the Chief Operating Officer, Palm Beach County Housing Authority was in the audience. He would speak as New Business Item A. Motion Board Member McCray so moved as amended. Board Member Katz seconded the motion. The motion unanimously passed. D. Consideration of Approval of Costa Center, LLC's Performance Audit for Year Ending December 31, 2018 for the Casa Costa Project for Compliance with the Direct Incentive Funding Agreement Chair Grant disclosed he was at Casa Costa getting a haircut at Cure and then dinner at Jamerican Cuisine. He invited all to park in the garage as there are doors to enter the north side of the building and one for the south patrons can walk through so one does not have to walk in and out of the entrance and exit of the parking garage. He commented the restaurant was good. He requested the small businesses receive City calendars. 10 Meeting Minutes Community Redevelopment Agency Board Boynton c Florida March 1 , 2019 Vicki Hill, CRA Finance Director, advised this is the ninth year of the Direct Incentive Financing Agreement (DIFA), and they are in compliance. She requested the Board approve releasing the $527,306. Motion Board Member McCray moved to approve for discussion. Board Member Katz seconded the motion. Board Member McCray commented they are completely full. Vote The motion unanimously passed. It was noted the project had one more year of DIFA remaining. E. Consideration of Approval of Boynton Village, LLC a/k/a The Preserve's Performance Audit for Year Ending December 31, 2018 for Compliance with the Direct Incentive Funding Agreement Ms. Hill advised this year the Preserve is in compliance. She requested the Board approve the DIFA for $77,762. Motion Board Member McCray moved to approve. Board Member Kelley seconded the motion that unanimously passed. F. Discussion and Consideration of the CRA's MLK Jr Blvd Project Conceptual Developrr:ent Terms Mr. Simon related this is the return discussion regarding the LRA's MILK Jr. Boulevard with Centennial Management Corporation. At the February CRA meeting, after hearing the presentation and having minor discussion and public comment, the CRA elected to have the CRA Advisory Board review the same information and presentation, provide recommendations on three areas of discussion and get additional public comment. The CRA sent out letters and emails to HOAs. Over 1,700 letters were sent to property owners and residents regarding those properties. The three areas of discussion were the financing options, support for the area median income ranges and age categories for the end users, and glaring items regarding the overall site plan. The CRA Advisory Board recommendations were included in the agenda item, which Mr. Simon read. The CRA Advisory Board recommended pursuing the 9% low-income tax credit funding for at least one cycle; apply for SAIL and the matching CRA Tax Increment Revenue financing for at least one cycle; and the third option would be to pursue the first mortgage and CRA TIF option. As to income, The CRA Advisory Board were to address very low and low at 30% of medium to 80% of the Area Median Income (AMI) households through the 9% low 111 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 13, 2019 income tax credit program. The Advisory Board favored the 80% to the 120% of the AMI, which is the low to afford abletwo rkforce recipients for multi-family instead of senior housing under the SAIL program; and using TIF and a first mortgage loan for the project for individuals at 60% of the AMI for workforce housing. The advisory board supported the project as presented, but also made recommendations for the Board's approval. They wanted to ensure the parking calculations met or exceeded the City's regulations and to Use larger caliper trees to provide shade for the surface parking lot and the ingress and egress into the residential buildings. They favored covered walkways and entrances where possible in the development. There was brief discussion of a parking garage, which is much more expensive than surface parking. Surface parking could satisfy the parking requirement for the development. Centennial Management proposed 124 affordable apartments on MLK Jr. Boulevard that had about 8,000 square feet of retail space, 3,250 square feet of covered open air/breezeway, a 2,500 square feet clubhouse, six-foot pavered sidewalks, parking lot lights and a friendly atmosphere with outdoor seating, and a design facade of adjoining grocery store. After they reviewed the redevelopment plan, they added an urban development concept having Old Florid a/Carribean influences. The homes will have front porches, metal roofs, pastel colors creating a beautiful atmosphere. There will bean artwall for the Art in Public Places, and tropical architecturally styled buildings. The plan is to contribute to the goal of revitalization. Within the retail component could be a barber and ice cream shop, medical care facility, casual dining or a trendy coffee shop. They plan to hire a local artist to paint murals on some of the buildings and hold job fairs to hire local subcontractors. The Board viewed the conceptual drawing and the one, two and three-bedroom units. The plan is to use efficient 15 seer air conditioning units and Energy Star appliances, with washers and dryers in the units and window treatments. Three financing options had been presented and income limits were reviewed. Future phases of the Townhome Ownership Program would be on scattered CRA owned lots on MLK Jr. Boulevard. The next step was a CRA Centennial Management Development Agreement, the purchase of private land, hold public meetings to obtain more community input on the site plan and apply for the Florida Housing Finance Corporation funding. Chair Grant asked if there were any public comment cards. A man identified as Tim said he was Executor of the Trust representing private citizens of Boynton Beach. He asked what FHFC meant. He advised the country is under the current National Emergency Economic Relief Act March 9, 1933. Chair Grant responded FH.FC stands for the Florida Housing Finance Corporation. It is a State funded agency run as a non-profit that has a housing lottery. The agency issues tax credits to developers to reimburse them for the income taxes they would have had to pay to the federal government for their project. It is not a federal issue. It is a State issue. The City is a publically held municipal corporation and residents, through an election, select their leaders. It is unconstitutional to represent any registered debt collector. 12 Meeting Minutes Communiity Redevelopment Agency Board Boynton Beach, Florida March13, 2019 Chenita Mosely, 132 NE 11th Avenue, explained this is the first time she was receiving information. Her house is next to the lot. She supports the plan for Boynton Beach, but she feels her house is next to the parking lot, and there will be break-ins. It will not be safe for her child to play. The road is already narrow and there will be a lot of traffic. She did not appreciate receiving information for the first time yesterday about redevelopment in Boynton Beach that pertained to her property. She thought the CRA did not consider purchasing all the homes on that side. Chair Grant thanked her for coming and explained the Board had 10 different meetings regarding this issue. The Board announced they had the agenda and the Board uses comments to make decisions. The Board was only picking the developer. The plan has not been finalized and Chair Grant suggested she speak to the developer who may offer to purchase her property. He also suggested she tell her neighbors Ms. Mosely explained there are only two houses and two empty lots. Chair Grant appreciated her comments Susan Oyer, 140 SE 27th Way, was aware the City requires 2.5 acres of green space for every 1,000 people of population. She queried if the Board was adding all these people, if they were adding green space. Chair Grant noted it was an issue the City had to decide. Board Member Katz agreed with the CRA Advisory Board recommendation, about the 9% low income tax credits for one application cycle, but he wanted to go through two cycles and if that did not materialize, to move on to option two and then option three, tax increment financing. Whatever the project, or the adjacent project the Board was trying to build, he did not want senior housing exclusively. He asked if they approached the owners of Bell's market. Centennial has had discussions with them, but there was no meeting of the minds. Board Member Katz commented as there is growth in the area, there is concern that development comes in and tries to snap up all the land and gentrification would occur. Adjacent property owners can expect to see more traffic and parking if they build anything other than single-family detached units. He encouraged Centennial to speak out to the neighbors and make them aware of what is coming with the existing land they have. He did not want to give the appearance the Board was trying to force people to sell their property. He thought some sort of a letter from the CRA or Centennial to the residents would help make them aware. Centennial did not want anyone to feel they were trying to remove them from their community. They hoped to add to the MLK community and welcomed any communication. Board Member Katz agreed with CRA Advisory Board recommendations for income. He liked the landscaping ideas and questioned why someone would have to provide more than the legally required amount of parking. Board Member McCray agreed with Board Member Katz. He wants to be good neighbors and favored reaching out to the community to ensure the CRA does not encroach on them 13 Meeting Minutes Community Redv l cy Board Boynton c , Florida March1 , 2019 or their land. As far as the art wall, he questioned who governs what goes on the wall. He wanted to be sure what was painted was decent and in order. Board Member Kelley agreed with the financial steps to acquire the funds. She was looking forward to hearing what the residents want. Chair Grant asked if there had to be a minimum number of units to apply for the tax credits and learned 30 units were needed to apply. He asked if there was an amount paid per unit and learned funding was based on the cost of the project and the basis, because it was a tax issue. Chair Grant thought that instead of making the entire project affordable, they make some workforce and market rate housing, which will help promote commercial development. He asked if the limit on the building height was because of the parking limitations and learned it was not. Centennial would have to check if they could have more apartments without reviewing the parking. Part of it was the aesthetics for the commercial center on the north side of the road. It does make sense for three or four stories of have it set back further for the three-story residential building. Because of the RFQ and not building site similar to Ocean Breeze East, he would like to see market rate housing or homeownership aspects for 26 units. Centennial was proposing have limits of $900 for a two-bedroom unit. What Chair Grant was proposing, would cause rents to be over $1,200 per unit at 80% of the AMI. It is a dramatic increase and for working families, it is difficult to meet. There would be different people with different incomes and they are competing with other projects that have two- bedroom units priced well auove that. The price point is still below the other projects. Centennial explained it would require a funding shortfall. Chair Grant thought that was fine. People returning from college with high student debt can pay the debt and live there. He would like to see the project going to the HOB Association and have a presentation with them about what is going on. If the community does not want market rate housing, that was fine, but he wanted them to know it was an option. It was explained when someone moves in, if they are at 60% and the rent is $895, and they could get a job the next day with an increase of 20 or 30% of their pay and still qualify to remain in the unit. Chair Grant favored attracting individuals at 80% or up to 100% instead of starting out at the 60%. Mr. Simon explained 60% to 120% of AMI would use the SAIL program. The 9% tax credits uses 30% to 60% of AMI. Centennial explained they can income average. At least 20ula of the units could be at the 80% or higher income level. Chair Grant wanted to use that option and asked what could be done to expedite the project. If Centennial pledged to income average, at least 20% of the units would be at 80% of AMI, if not more. Centennial thought the CRA was better off'getting the 9%tax credits so they would have extra money to build more developments within the CRA in the future. Chair Grant thought if the 9% tax credits were not obtained in 2019, the Board should review other funding options 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March13, 2019 The 8K square feet of retail space will be managed by Centennial. Chair Grant noted Casa Costa received TIF to fill the retail units. He wanted to offer the same option to Centennial to incentivize the developer to fill the units because the tax credits do not apply to the commercial. They could get businesses to locate there in the beginning. Chair Grant asked if the covered open-air breezeway would be used as a patio for dining patrons and learned it could. A coffee shop does not have a commercial kitchen, and he asked if the community wants another restaurant. It could be an outdoor seating area and have some indoor. Chair Grant asked if the 2,500 square feet leasing office and clubhouse will have a dual function and learned if community member needed it for a function; they could use it in the evening. It will have a computer lab and a kitchen. He did not think MILK had a bike lane, and a minimum of an eight-foot sidewalk is required. Chair Grant suggested working with the Arts District regarding the mural. There is a process would be specified in the site plan. Chair Grant wanted the building to match the other building exteriors. He emphasized, even with averaging, he wanted to encourage some people who make above median income to live there. He thought the first floor apartments on MLK Jr. Boulevard could be a livelwork space. He was in Los Angeles across from convention center, they had two- chair barbershop and the owners lived behind them. Board Member McCray commented another community meeting was needed. Nine people attended the last one and two comment cards were submitted. He suggested Centennial engage the community and send another mailer for the next meeting date. They agreed. Centennial Management also advised they need to meet with private homeowners they need to purchase property from and they need to negotiate. They do not mind adjusting the project to accommodate the community's wishes. He advised they need a commitment from the CRA so they can solidify the plan. Board Member McCray explained the Board could give a commitment, but they still need a meeting. Mr. Simon explained similar to the Town Square project, the intent in the IFP was that once a developer was selected, public input meetings would take place to obtain public input and explain how the development would proceed. A site plan approval would take place after the developer was selected and the contract was somewhat negotiated, giving milestones to the developer and CRA to meet. This is a citywide project, but it is not an isolated project. It is staff's intent to begin to put it in a more permanent perspective with the residents, Board Member McCray supported the tier one recommendation from the CRA Advisory Board. Board Member Katz was aware there is extreme caution about proceeding without some degree of surety that the project is all the community dreamed it would be. He was concerned every time the Board meets, the CRA says lets have another community meeting and five or 10 people attend. At some point, we have to make a decision. They 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 13, 2019 cannot make a project that will please everyone. He supported another community meeting and sending notifications about the meeting, and then the Board make decision. Centennial would apply for the 9% tax credits in the fall. Chair Grant asked if they would receive an answer by July and learned it was up to staff. SAIL will come out later. Chair Grant wanted a final draft by the July meeting so they can be prepared. Centennial commented the sooner they can work on it, the better off they are. They have to put together a site plan and solidify contracts and purchases from other owners. Chair Grant agreed and explained that was why he wanted to create a time line. The site plan would change if some of the properties were purchased. He wanted a commitment to apply for the 9% tax credits for the first year. If they do not succeed, a portion of the development could be constructed with SAIL funds. They could also leave an option for the 60 units to be built with the 9% credits in 2020. Centennial preferred to apply for the 9% both times, but it was up to the CRA. Board Member Katz wanted a more aggressive timeline. He did not want to wait until July for a plan to be developed. He wanted to decide on a'drop-dead date at the May CRA meeting. As to the financing, how many rounds, work force verses market rate very affordable housing all have to be decided and he wanted to make them in May so if there are any changes they will have as much time as possible in case there are adjustments. The application cycle requires a great deal of work. They will need to have all their ducks in a row, so they will not submit an application containing mistakes. The more time they have the better. Chair Grant requested a motion for 60-day maximum period for Centennial to negotiate with the CRA and his deadline to have properties purchased would be July. Board Member McCray wanted to ensure they keep the community engaged. Motion Board Member Katz moved at the May CRA meeting, the Board would decide on the particulars so a contract could be established and between now and then, Centennial hold two public meetings in the HOB and notification be given to the community. Board Member McCray seconded the motion. Chair Grant had questions about the 60 days. Attorney Duhy requested clarification if the motion was to bring back the terms in the form of a purchase and sale agreement or a term sheet. Chair Granted wanted as a second option on May 14th the contract is ready for the Board's review. At that meeting, everything would move forward. It can include contingencies if something does or does not succeed. They can use the contract from Ocean Breeze as the template. Attorney Duhy clarified, as has been done in the past, they will prepare a full agreement with legal language and 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 13, 2019 a term sheet that outlines the business points that they will discuss in order to provide direction to Legal and Centennial about what needs to be changed to finalize the agreement. Board Member Katz explained what was just stated was his motion. Board Member McCray commented that was his second. Board Member Kelley explained the flyers are not working. She supported encouraging residents to join the City's page or CRA pages. Send postcards or flyers to the NOP to keep with them and distribute. Poinciana and Galaxy Schools are in that District as well as Rolling Green and Forest Park. He suggested contacting the principals for Boynton Beach High School, Congress Middle, Galaxy Poinciana and Rolling Green to give to the students to give to the parents. He also wanted to mail a flyer to every residential property within 200 yards of every street. Board Member Katz suggested the CRA send three or four mailers. Centennial agreed Chair Grant requested the following language be included in the motion, "That the Board give authority for the CRA Executive Director to approve the flyer and not have to come back to the Board for approval. Board Member Katz amended his motion to include the language. Board Member McCray seconded the amendment. The motion unanimously passed. Mr. Simon requested to leave the item on the agenda as a running agenda item with the CRA Advisory Board. There were no objections. G. Discussion and Consideration of the CRA's Cottage District Infill Housing Project Conceptual Development Terms Chair Grant explained he spoke with Mr. Simon. The CRA needs between $1.8 and $2 million worth of improvements for on-site and off-site utility work before building can begin. Chair Grant explained before planning the cottages, the Board has to determine how to build them first. Michael Pecar, Neighborhood Renaissance, reviewed a spreadsheet showing development costs in three categories. One category included the cost to build the house, the pad and the infrastructure. The second category included the on-site work including internal streets, bringing the utilities to all the internal lots, and the third category was the cost of the off-site work, which included everything from the back of the sidewalks out. The plan included new sidewalks, curbs and landscaping on 4th, 18t, and Stn Streets. The City and Public Works asked for upgrades and replacement for some of the aging infrastructure for water and sewer. It would be better if the CRA built the on and off-site infrastructure as it would save a lot in interest costs and Neighborhood Renaissance would have to re-use its construction line of credit to build the infrastructure. They would have to carry it for the 24 to 36 months it would take to build and sell the homes. A revised 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March13, 2019 proposal was submitted which eliminated the interest cost. The cash contribution from the CRA would be $1,844,000. The average hard construction cost was $231,075. Each three bedroom, two bath home would cost$267,450. The CRA donating the land valued at $1.12 million and funding the infrastructure for $1.84 million results in a total contribution of almost $3 million in return for homes that cost $267,000. Other new build developments with modest homes start at $325,000 to $340,000. The CRA Advisory Board was concerned about how to keep the neighborhood affordable. Boynton Beach has some assistance programs that would assist lower income families to purchase a house, as does the County. Board Member Katz thought the infrastructure costs would have to be paid for by the CRA and that the upgrades were not relative to the project. The total cost of the infrastructure upgrades is $1.8 to $2 million. Mr. Simon explained the offside work would have benefits to multiple parties and then prepare the site for the homes. It would take 12 to 18 months and then build the project. Board Member Katz thought the Board should shift its focus to the infrastructure as the Board was putting the cart before the horse by agreeing to a project and then indicating it would take 12 to 18 months to install the infrastructure and then build the project 12 to 18 months later. If the infrastructure upgrades had to be done, he was not ready to commit to the project knowing they have to lay out $1.8 million. Chair Grant agreed the infrastructure installed first and thought there was no point in binding the CRA for the future. Mr. Pecar explained construction costs increase as does the price of housing, but income also increases. Attorney Duhy explained if the Board wants to terminate negotiations with Neighborhood Renaissance due to the unforeseen infrastructure cost, a motion would be needed and also a motion to terminate the RFPIRFQ. Mr. Pecar explained the full $2 million would not need to be spent. He believed Public Works would only require the off-site improvements, which cost $600,000. He offered if the Board liked the plan, they could withdraw the street and utility improvements on the perimeter and they could build out 17 homes, which was about half of the project. Later, depending on the market, the Board can subdivide the internal lots or build the internal infrastructure. He thought the project could be constructed in two phases, but after brief discussion, it was ascertained it could not. There was discussion the Ocean Breeze East project is coming in for site plan approval. That site has the capability for that project and they may tap into that line. They would have to pay for more water utilities along Seacrest. Whatever happens, the CRA would to have to spend over $1.5 million before anything could be built. It did not make sense to tie up the property into the future. 18 Meeting Minutes Community v ! nt Agency Board Boynton Beach, Florida March 13, 2019 Motion Board Member Katz moved to terminate negotiations with Neighborhood Renaissance and terminate the RFP/RFQ for the Cottage District project. Board Member McCray seconded the motion that unanimously passed. 15. New Business A. Discussion with Larry Greenberg, Palm Beach County Housing Authority Larry Greenberg, from the Palm Beach County Housing Authority, advised the Housing Authority is in transition. They lost their executive director in 2017 and they have a qualified person leading the Authority. They adopted a phrase "It's a new day". The Housing Authority has a significant presence in Boynton Beach and the authority operates 40 square foot houses as part of their public housing program. Most of the homes are in the Boynton Beach corridor along Seacrest. There are a few further west. The Housing Authority owns some vacant lots. They met with the CRA three or four weeks ago. The Housing Authority is going through all areas of business and reviewing where they are at with different developments. They look forward to working with the CRA on various properties they own in Boynton Beach and on the vacant parcels in the Cherry Hills District. Board Member Katz asked how many vacant parcels in the CRA District the Authority owns. Mr. Simon explained it is well over twenty lots. Some of the lots have 25 foot widths and some have 50 foot widths. He thought the goal of the Housing Authority is to provide safe, sanitary, and affordable housing and not to sit on vacant lots. He asked when the CRA could discuss the Authority selling or turning over all those vacant lots to the CRA, so the CRA could turn those vacant lots to Habitat for Humanity to build on. If the mission is to take the lots and make them affordable, the CRA could have every parcel earmarked for development in 12 months. He thought proceeding with Habitat would be the quickest more efficient way to proceed. Larry explained there are many steps involved. The Cherry Hill properties were public housing and in order to dispose or repurpose public housing there are many steps and applications to HUD who is involved in the ownership of the property. The new Executive Director is aware of many aspects of the business as they are involved in different areas and stages of many different developments. There are several long-term employees at the Housing Authority. The issue is on their radar, but he could not say when they will be able to address it. Board Member Katz's goal was to advocate the Housing Authority and the County Commission to take the needed steps by beginning the process. The concept has a common goal. The Housing Authority is a quasi-governmental and a federal agency. It is not a County agency. They are interested in working with the CRA, but they have to make sure they are fit and ready to continue moving forward in the best interest of their clients. Staff, the Executive Director and the Board members are all aware of the CRA's concept. 19 Meeting Minutes Community v to nt Agency Board Boynton Beach, Florida March13, 2019 Board Member McCray stated the Cherry Hill properties have been dilapidated for 30 years. The properties have been neglected for too long and are an eye sore. He agreed they needed to move forward quickly and let the Board know what they can do. Mr. Greenburg was concerned the property was an eyesore because the Housing Authority pays bills every month to maintain the lots. Chair Grant confirmed the property was an eye sore. There is illegal dumping and Public Works picks up the trash. Homes on the property would be much better. Mr. Simon had scheduled a tentative follow up meeting with the new Director. The goal of the CRA is housing and redevelopment, which is the same goal as the Housing Authority, and staff would lik,: to explore every opportunity with them. Mr. Simon pointed out there are 38 lots. Chair Grant noted there is property at 402 NW 12th Avenue and there are vacant lots west of it that the Housing Authority owns. He supported starting in that area. Across the street is an acre, which might be better for townhomes, although the area has only single- family homes. He did not think the Board had to be concerned with the infrastructure for those six lots. He thought the lots could accommodate three or four houses. He was interested in the Housing Authority Board issuing a letter of intent. Chair Grant inquired how the Authority builds home and if the Federal government provides the funding. Mr. Greenberg explained they finance with Florida Housing Finance or one of several other options. Before the Housing Authority would do anything, they would put a business plan together to determine what market they want to attract. They have homeownership opportunities with some of their programs and they offer self-sufficiency programs. Mr. Greenberg advised there are some people already living in the Boynton area that are completing those programs that may be interested in purchasing home. He commented that if the CRA would provide him with the addresses for the littered lots, he would look into the matter. Chair Grant requested working on these properties at 402 NW 12th to 412 NW 12th first. The CRA owns the corner piece. Mr. Greenberg explained the Housing Authority did send a tentative follow up schedule. Chair Grant explained he did not want the Housing Authority to move faster than they could, and there was no point asking the Housing Authority to address all of their properties because the totality of it is too much. The CRA wants to get a project going with the Authority. He was discussing five properties that abut a CRA property on a block and he wanted to move forward with just that piece. He sought to narrow what the CRA is doing so they can get a project going with the Palm Beach County Housing Authority. He requested a motion for a notice of intent to work or help finance single-family homes for home ownership on the properties on 404, 406, 408, 410 NW 12th Avenue and 412 NW 10th Avenue. The CRA Staff will send a letter indicating that was the area they want to start with because if they cannot get this done, he would not expect anything else to be done. Motion Board Member McCray so moved. Board member Kelley seconded the motion that unanimously passed. 20 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, FloridaMarch 13, 2019 N B. Discussion and Consideration of the Purchase for the Property Located at 1101 N. Federal Highway Mr. Simon reviewed the above item. The owner offered to sell the above for $140K and CRA would negotiate the payoff of the liens including administrative fees of more than $490K. Staff would work with the City to negotiate the fines down, and the building would have to be demolished. The fair market value from the appraisal was $116K. The CRA Advisory Board recommended purchasing the property at $121,800, which was five percent above appraisal and the $140K was just over 20% above appraisal. The intent of the acquisition was not for commercial redevelopment, but it was described in the CRA plan. If the Board could not acquire everything north of it at the same time, the Board would enhance the entrance into the MLK Jr. Boulevard Corridor and make future entrance enhancements for pedestrians. The building would not be activated in a commercial way. Board Member Katz thought the building had no purpose and there was no urgency to acquire the property. The price was beyond market value and he would not support it at this time. If not acquired for a specific purpose, he did not favor paying above market rate. Board Member McCray agreed. Chair Grant thought the Code Compliance lien would not be removed. The City demolished the Jenkins property because the City felt they had the right to demolish it. It cost $15K to $20K to do so and then the Jenkins sued the City for an eminent domain action. They had paid $15K to $20K for attorney's fees and then paid $150K for the value of the property that was already vacant. He noted the other side of Seacrest looks completely different. They want to beautify District II and the CRA spends a lot of money on'blighted properties. There is commercial property to the north. If the CRA turned the property into a parking lot, they may be able to get better tenants or work with them to purchase that property. They purchased the property across the street for $11 OK and they just demolished it. It was not a bad investment, because if they did not, it will cost the City more money and end up with the same thing. The CRA can decide what the property could be used for when the CRA acquires the property. Approving this item would give the Board the opportunity to help control the narrative. Board Member Kelley supported purchasing the property, but not at the price the owner wanted, because there are additional administrative costs and items the CRA would have to pay. She supported purchasing the property for $121,000. Motion Board member Kelley so moved to purchase the property for $121 K. Board Member McCray seconded the motion and advised he wanted the corner cleaned up, but did not support $140K. Board Member Katz explained the CRA has to pay to demolish the property. He supported paying $100K and the CRA cover the costs of whatever the CRA 21 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March13, 2019 has to do, including demolition. He would want a reasonable time-period to put an idea in place. This property cost would come from the MLK Jr. Boulevard line item. Mr. Simon explained the lot would be sodded with Bahia grass. Chair Grant supported the $121 K price. The motion passed 3-1, (Board Member Katz dissenting.) Chair Grant explained the owner could either accept or make a counter offer. A woman, known as the owner who did not give her name, agreed with Chair Grant. She asked where the $500K lien originated and felt her due process rights were violated. She advised she could file a federal lawsuit against eminent domain. She did not know where the mail went. She found out about the lien when she proposed to sell the property to the CRA. 'She asked who mowed the lawn and took care of the building. She asserted the City of Boynton Beach took the money. She rejected the CRA offer and announced she will file a federal lawsuit because the liens were an obstruction of justice put on her property. She thought the CRA was forcing her to sell. Chair Grant noted the options were to reconsider the price and not worry about a lawsuit, he did not think would occur. Board Member Katz was content to let the property owner keep the property. She could sell it later. B. Consideration of Accepting the Transferred City-Owned Properties (Lots 154 and 155, Arden Park) to the CRA to Facilitate Future Redevelopment Projects within the MLK Corridor Motion Board Member Katz moved to approve. Board Member McCray seconded the motion that unanimously passed. C. Consideration of Fiscal Year 2018-2019 Budget Amendment for Unassigned Fund Balance and Self-Funded Insurance Reserve Ms. Hill explained after an audit, a cash analysis was conducted on the account and there are monies they can put towards projects. They have about $800K, but there is a self- funded insurance reserve the Board approved in 2014. There was $640K available to reallocate. Board Member McCray wanted to wait until we have the complete Board before they make a decision. A decision did not have to be made at the meeting. Motion Board Member McCray moved to table. Board Member Kelley seconded the motion that unanimously passed. 16. CRA Advisory Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida March 13, 2019 A. CRA Advisory Board Agenda - March 7, 2019 B. CRA Advisory Board Meeting Minutes - February 7 2019 C. Pending Assignments D. Reports on Pending Assignments E. New Assignments 17, Future Agenda Items A. Tree Lighting Information B. Consideration of a CRA Board Retreat C. Social Media Outreach Program Report D. Discussion Regarding an Educational/Job Training Grant E. Consideration of Equitable Economic Development Grants F. Social Media Activity Report for Events in November and December G. Consideration of Purchase and Sale Agreement with the Community Caring Center Boynton Beach, Inc. (CCC), for their property located at 145 NE 4t" Ave, Boynton Beach, Florida 18. Adjournment There being no further business to come before the Board, Chair Grant adjourned the meeting at 9:47 p.m. Catherine Cherry Minutes Specialist 3