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Minutes 05-14-19 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD IN 2240 N. FEDERAL HIGHWAY, BOYNTON BEACH, FLORIDA ON WEDNESDAY, MAY 14, 2019, AT 6:30 P.M. Steven B. Grant, Chair Michael Simon, Executive Director Justin Katz, Vice Chair Tara Duhy, Board Counsel Mack McCray, Board Member Christina L. Romelus, Board Member Ty Penserga, Board Member 1. Call to Order Chair Grant called the meeting to order at 6:33 p.m. . Invocation Board Member McCray gave the invocation. 3. Roll Call Roll call was taken. A quorum was present. 4. Agenda Approval A. Additions, Deletions, Corrections to the Agenda Chair Grant announced Item 15C was no longer on the agenda. He noted Item 7C was not confirmed in writing and he wanted to address it under New Business. He removed Item 14B, but wanted to have a discussion regarding Tax Increment Funding Revenue Agreement (TIRFA). B. Adoption of Agenda Motion Board Member McCray moved to approve. Board Member Romelus seconded the motion that unanimously passed. 5. Legal None Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 14, 2019 MMMMOMMM 6. Informational tMembersStaff: A. Disclosure of Conflicts, Contacts, and Relationships for Items Presented to the CRA Board on Agenda Vice Chair Katz disclosed he met with Michael DuBose about property he owns between Woolbright Road and Ocean Avenue on Federal Highway. Board Member McCray thanked Board Member Romelus for attending a Mother's Day program on Saturday where his mother's name was mentioned. Board Member Penserga had no disclosures. Board Member Romelus spoke with Attorney Bonnie Miskel regarding the item on the agenda. She met with Michael DuBose a few weeks ago regarding the same property. She belatedly wished all a Happy Mother's Day. Chair Grant met with Michael DuBose regarding properties along 4th Street. 7. Announcements and Awards A. Rock the Plaza at Ocean Plaza Recap Mercedes Coppin, Business Promotions and Event Manager, announced the Rock the Plaza at Ocean Plaza event took place on Saturday, April 131h. The event showcased the participating retail and service businesses located at the plaza. There were 16 businesses featured on the business Bingo Card, which was a fun way to encourage event patrons to walk through the plaza and engage with the various businesses. Twenty attendees completed the feedback survey. Of them, 56% heard about the event on social media and 21% heard about it by word of mouth. Ninety five percent indicated they planned to patronize a business in the plaza during the event. After the event, staff spoke with the businesses and a digital survey was conducted. Overall, the feedback was positive. Most respondents were very satisfied with the additional plaza exposure and several business owners felt they received viable leads for future markets and sales. B. Rock the Marina & Lionfish Derby on June 1, 2019 at the Boynton Harbor Marina Ms. Coppin announced the June 1St Rock the Marina and Lionfish Derby at the Boynton Harbor Marina, from 2 p.m. to 6 p.m. featuring live music by Spred the Dub, a reggae fusion band. Cocktails and offers from Marina businesses will be offered as well as the event having an educational component via discussions about lionfish, marine life and other sustainability efforts. There will be several non-profits on site, including the Reef Institute, Seaturtle Adventures, Under Blue Waters and the Boynton Beach City Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 1 , 2019 Sustainability Department. No outside food vendors will be present in order to encourage patrons to visit the marina restaurants. There will be a Lionfish Dip contest that will feature different restaurants from the CRA District. So far, the Driftwood, Hurricane Alley and the Fish Depot have signed up to prepare a specialty Lionfish Dip. The owner of the Driftwood will be on site as the celebrity chef and he will demonstrate how to clean and prepare Lionfish. Free parking is on the southeast corner of Boynton Beach Boulevard and Federal Highway and paid parking is available in the Marina Garage for five dollars. The Lionfish Derby starts at 8 a.m. to 2 p.m. and the CRA is working with the Boynton Beach Dive Center and four of the dive charters that operate at the Marina. Registration is $60 for a three-tank dive. Registrations will be accepted through May 30th. Interested individuals should contact Ms. Coppin or the Boynton Beach Dive Center. So far, of the 48 diver limit, 23 divers have signed up. Chair Grant was aware a few businesses in the CRA were having events such as anniversary or closeout sales. He asked what the best way was to announce those events. Ms. Coppin advised Ms. Roberts handles social media and the event can be included on the CRA Social Media Calendar. B. Rock the Plaza on June 29 from 4:00 P.M. to 8:00 p.m. at Casa Costa Plaza This item was addressed later in the meeting. 8. Information Only A. Public Relations Articles Associated with the BBCRA B. Marketing and Business Development Campaign C. Public Comment Log 9. Public Andrew Podray, 800 N. Road and member of the Building Board of Adjustment and Appeals ,was approached by Ms. Coppin to hold a Rock the Plaza event at Casa Costa and he agreed. He had received four violations for 2019. Last week Mr. Podray received 10 additional violation notices. When he contacted the City, he was told he had four additional notice of violations forthcoming. Mr. Podray informed the Board he did not want to go forward with the Rock the Plaza event. He commented the City has three or four different agencies doing the opposite of what a CRA does to promote small businesses. He has been tortured by the Building, Fire, and now Code Enforcement Departments. Mr. Groff reached out to him for a meeting and at that meeting, he pointed out every flaw, which Mr. Podray believed predicated the 10 violations. Mr. Podray heard the CRA was working with staff on a modification regarding awnings and window signage. He requested when the Board Members convene as a City Commission, they investigate granting a variance for the next six months, because there some items he cannot solve such as the wood under the awning. The air conditioning units are not easy to cover. He 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 14, 2019 thought Casa Costa needed a blanket variance. He will meet with the special magistrate and if he is fined, he would pass it on to the tenants. Casa Costa cannot absorb the financial loss, and it will run the tenants out of business. He would love to participate in the Rock the Plaza event, but he wanted to know the tenants could make a living there and the building would stay full as opposed to being empty in six months. Attorney Duhy advised the matter was a City issue and the CRA Board should not address the comments as Board Members. Chair Grant asked if the CRA could provide funds for businesses to assist them with Code violations. Mr. Simon responded the CRA has commercial and fagade grants available to make improvements. Natalia Koblova, owner of That's Amore in Casa Costa, announced she received another Code citation. Her main problem as a new business was how to attract people. Her restaurant does not have enough visibility and the snowbirds are gone. For a new business, sometimes a citation is too much. When the sign was installed, it had to be placed so high no one can see it, unless the Palm trees are cut. There is a logical place on a building for a sign to be visible, but by Code, she cannot place it there. She was trying to be creative and put signs in her windows, which she would remove if the exterior sign was visible, The tenants are not trying to break the rules. She was trying to make it work for her business. She commented there is wood and she has a wood fired stove. If they are not allowed to have wood, she would have to close the restaurant. Chair Grant encouraged her to attend the next City Commission meeting on Tuesday to discuss it further. Michael Watz, co-owner at Novice Escape Room, commented one of the main reasons they opened their small business in the CRA District was the growing downtown area and the support the CRA provided. He was discouraged about the code violations. He agreed it could ultimately put them out of business and tenants cannot absorb those costs. New small businesses struggle with advertising and getting the word out to the community. As a first year business, it is important to advertise to make people aware of them. He hoped the Board could find a way to work together moving forward. If they had to choose between the Rock the Plaza and having no code violations, they would chose no code violations, He hoped to find a balance between them both. Corey Sturkey, owner of Qure Barbershop, thought the violation was another item added to his struggle. He did not have people to call. The Rock the Plaza sounds good, but he cannot have anything on his window which is his main source of advertising along with social media. He has to ensure his business can be seen at all times. His family depends on him, and these violations are a huge factor. He needs as much advertising as possible. Irwin Cineus, Community Organizer, Boynton Strong, attended the community input meetings for the MLK Jr. Boulevard corridor. He thought the current plans lacked human development and community wealth. The buildings were nice, but there was nothing that addressed any kind of training or enhancement for the residents. He was discouraged. Mr. Simon had asked him what the community was looking for and he replied they were Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 14, 2019 looking equity. He bought up the Community Benefit Agreement (CBA) indicating it should be a document. Mr. Cineus reminded the Board, the CRA would not qualify for funds without District II and the Board should not forget where the money comes from. The community wants development and growth. He thought having 240 units and not one being able to be sold would make the community residents renters for the rest of their lives. He thought they needed to find ways to build wealth and not just build buildings. He wanted a human element attached to the plans. Tory Orr, residing at 407 NE 17th Avenue, Apt 101, had concerns with MLK Jr. Boulevard signs. There are no trucks allowed. There is a one hour parking and a no loading sign. Then he went to Ocean Avenue and he saw four signs. Parking was 8 a.m. to 5 p.m. They have nine hours of parking on Ocean Avenue with the same amount of commercial business as on MLK. Chair Grant was unaware of it and Mr. Orr commented he never sees his Commissioner until they come to the meeting. He inquired why there are no community meetings held with their Commissioner, like Vice Chair Katz and Board Member Romelus hold. He came to Boynton 25 years ago. His business was not in great shape and his, and other community businesses were demolished due to slum and blight. They were supposed to take it down and build it back up. He has been waiting for 26 years, and now there are 268 apartments and the CRA would not consider seeing if the residents can own them. They would have low income rent to own units and the developer would manage the rentals for 50 years. He wondered what was going on and asked for help. Bernard Wright, 713 NW 2nd Street, Bernard Wright Ministries, thought there were legitimate complaints voiced. He pointed out some City garbage trucks should be removed from use because of the stench and maggots. Liquid drips out as the truck moves. The City did a great job cleaning it up and got rid of the smell, but only after he complained. The issue occurred on NW 12th Avenue and 3rd Street. He commented this was not the first time this occurred with this particular truck in District II. and other areas have different trucks. Minister Wright spoke about the Carolyn Sims Center and neighborhood children being locked out of summer camp. He filed his third complaint in Federal Court and felt the youth should be grandfathered in at the Carolyn Sims. There is a summer camp fee. Tthe doors to the Center are closed to the rest of the public. He planned to request a jury trial and felt he would win. He opposed locking the doors to children subjected to the elements on street because they have no place positive to go. He requested the Board do what is right for the people and he wanted the public to be aware of the matter. Chair Grant noted there are liability issues when dealing with minors at the Carolyn Sims Center. Minister Wright commented he has documents reflecting 85% of the youth at summer camp are white and from the suburbs. He advised this issue would be resolved. No one else coming forward, Public Comment was closed. 10. CRA Projects in Progress Meeting Minutes Community Redevelopment Agency Board Boynton ch, FloridaMay °i A. CRA Economic Development Update Mr. Simon gave a status update. The Board had budgeted $554,356. If the item on the agenda is approved, a total of $167,879 in grants would have been given to local businesses. B. Sara Sims Park Project Update Thuy Shutt, Assistant CRA Director, announced as of May 3"d, the pavilions at the park have been completed. The restroom walls are up. The City will be adding trusses, the roof deck and security lighting. The light pole and the sanitary sewer tie-in on MLK Jr. Boulevard will be completed very soon. The parking lot from MLK Jr. Boulevard is under construction. The base is complete and the sub-grading and asphalt path are finished. Installation of the irrigation has started and installation of the decorative fencing will begin soon. Staff anticipates the roof work for the restroom will be finished in early June. The meandering asphalt path in the park interior was finished, creating a nice vista. Chair Grant asked if the park will be open before the end of the summer and learned the target date was June. The City was also considering adding the amphitheater, which was not part of the original scope of work and funds were not budgeted. The item will come before the Board for the additional funds in June or July. It was one of the items that came up at one of the community input meetings in 2017. The City will provide the estimated costs to reuse the amphitheater. The water and electrical connections were prepared as part of the park improvements and they can tie into them. Board Member McCray believed the more realistic completion date was July. Board Member Romelus asked if the Board had considered naming rights for benches or chairs and learned the benches are part of the improvements. She liked the idea of the addition of a family plaque. Ms. Shutt commented she would look into the issue. Board Member McCray commented they have not reached the point yet to think about plaques. Chair Grant thought it was a City Commission discussion. C. The Historic Woman's Club of Boynton Beach Roof Replacement Project Closeout Ms. Shutt advised the project was officially closed. The last payout was approved and the check will be issued. To-date, the CRA received $36,775 from the Solid Waste Authority to be used as a reimbursement for the reroofing project. The total cost of the project was $310,584.33, which was a $9,415 savings. The next phase is to repaint the building and fix some of the windows. Staff had sought to dry the building in and then start to lease the building, while staff waits to apply for a state grant. She hoped those would be the major renovations, including updated bathrooms and other items. The elevator had some work done, but there was plumbing, heating ventilation and air conditioning as well as lighting work needed in order to make the building more competitive with other venues in the area. Chair Grant had a request to make the Woman's Club more of a museum/venue, 6 Meeting Minutes Community Redevelopment Agency Board Boynton h, Florida May 14, 2019 Ms. Shutt noted item 15B could include some renovations. There is a separate section they can apply for rehabilitation funds and include it as part of the rehabilitation activity. There is a separate grant from Cultural Affairs that deals with programing. The grant that closed only dealt with historic preservation components. She explained the plan was to restore the building, look at programming and then seek funds. Mr. Simon requested the Board give feedback about the type of programming wanted. D. The Model Block Infill Housing Project - NW 11th Avenue Roadway Project Closeout Ms. Shutt advised the project closed as of April 15," and the paperwork is being worked on by the City as part of a larger project. At closeout, the project cost$474,690.79, which is about $32,571 under the contracted budget amount the City Commission approved. The next phase will be to construct single-family homes on the lots on the south side of NW 11th Avenue. Habitat for Humanity will construct the homes and work with the City. These were the nine properties the CRA bought and transferred to the City so the homes could be handled by one governmental entity. 11. Consent Agenda A. Financial Report Period Ending April 30, 2019 B. Finance Department Purchase Orders for amounts exceeding $10,000 for the month of April 2019 C. Approval of CRA Board Meeting Minutes -April 9, 2019 D. Approval of Commercial Property Improvement Grant Program in the amount of$20,444.40 for E & C's Beauty Experience LLC located in 500 Ocean at 500 E. Ocean Avenue E. Approval of Commercial Property Improvement Grant Program in the amount of$16,674 for Monnin Properties, LLC located at 605 NE 3rd Street F. Approval of Commercial Property Improvement Grant Program in the amount of$20,061.01 for The Carly Corporation located at 802 N. Federal Highway G. Approval of Commercial Property Improvement Grant Program in the amount of$3,933.13 for 4rProducts, Inc. located at 332 W. Boynton Beach Boulevard 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 14, 2019 H. Approval of Commercial Rent Reimbursement Grant Program in the amount of $12,000 for 4rProducts, Inc., located at 332 W. Boynton Beach Boulevard I. Approval of Commercial Property Improvement Grant Program in the amount of $25,000 for Property Damage Consultants, Inc., located at 125 Boynton Beach Boulevard J. Approval of Commercial Rent Reimbursement Grant Program in the amount of$15,000 to Property Damage Consultants, Inc., located at 125 E. Boynton Beach Boulevard Motion Board Member McCray moved to approve the Consent Agenda. Board Member Romelus seconded the motion that unanimously passed. Pulled12. H. Approval of Commercial Rent Reimbursement Grant Program in the amount of $12,000 for 4rProducts, Inc., located at 332 W. Boynton Beach Boulevard Chair Grant looked at the backup and noted it was under Fly and Flow Fitness, not the 4rProducts, Inc. He asked if everything has been filed correctly for 4rProducts, Inc. Mr. Simon explained the application has been saved under the wrong item, but the lease information was fine. They will make that adjustment and change it out. Motion Board Member McCray moved to approve with corrections. Board Member Penserga seconded the motion that unanimously passed. 13. Public Hearing 14. Old Business A. Consideration and Recommendations of the Conceptual Design and Development Terms for the CRA's MLK Jr. Blvd Redevelopment Project Mr. Simon explained there were several additional community input meetings, in addition to Board meetings. The attachments reflected the comments made and attendance. Highlights included adequate parking, urgent care, concerns about commercial activity now and after the project is constructed, and if another Boynton Terrace would occur. There were questions about Centennial Management practices, maintenance, security 8 Me eting Minutes Community v to met Agency Board Boynton Beach,_Floriday 14, 2019 for tenants, the area, pedestrians, and if the landscaping would meet the City's Codes and Regulations. The last discussion pertained to the opportunity to create community wealth building through job fairs and the opportunity for local qualified and licensed contractors and subcontractors to bid on parts of the project and the ability of Centennial to work with local residents to take positions that are more permanent than temporary construction jobs and management positions. Staff is bringing back the terms of a draft agreement that contains many of the items presented. Centennial was present for questions. Board Member McCray announced he did not meet with anyone about the project and asked Mr. Simon how much of this project overlapped with what was presented at the charette 25 years ago. Mr. Simon responded it has all the components that were originally presented for the MLK Jr. Boulevard corridor, with the exception of the additional ownership from the 18 units. Elizabeth Roque, Centennial Management announced they are trying to come together as builders and developers in the community to give the community what they are requesting. They cannot make everyone happy, but they will do their best. They have to stay within the various building codes and restrictions. Louis Swezy, President, Centennial Management, explained they added funds for the build out and can have smaller retail to have more flexibility. They met with the CRA and reviewed the comments. One comment, if using local businesses, was they cannot pay rents that are charged elsewhere. Centennial set the rent at $10 a foot in the proforma to cover utility and operating expenses. Board Member McCray asked if ownership was discussed. Mr. Swezy explained ownership would occur in the next phase on individual lots as they added townhome development. Vice Chair Katz noted there is a sliver of a lot and then vacant parcels to the west. He asked if they were able to contact those owners and if there is any interest to sell their land. Mr. Swezy replied they had, but not recently. They contacted as many people as possible in the Request for Applications to come in so they could find parcels that were reasonably priced. He requested they continue to approach the owners as they could potentially acquire those properties. Ms. Rogue agreed they would work with the Board. Board Member Romelus spoke about homeownership and home equity. Centennial is building apartments that would not be converted to condominiums or offered on a rent- to-own basis. She asked the Board to consider, if they moved forward with a Purchase and Sale Agreement, partnering with a local general contractor that could hire local individuals that may not have the same level of experience as other contractors and subcontractors to allow for equity and community involvement. She thought they could have apprenticeships for local individuals to learn the various construction trades. Prior projects encouraged local hiring, but the numbers fell flat and there was no true positive impact. She wanted the Board to be cognizant of the fact they are causing a change to the landscape of what the community will look like. She wanted the Board to consider 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May1 , 2019 adding that in the agreement and they could negotiate a percentage of what the partnership would be. Chair Grant spoke about financing. If Centennial obtained the 9% tax credits and they gave the CRA $2M, he would want the funds to be reinvested in the project to build a parking garage, so a three-story residential unit could become four or five stories that would support the commercial component. Congress Avenue has residences above retail providing homeownership, condominium opportunities. These would not be a subsidized condominiums; they would be market rate. He wondered if Centennial contemplated the scenario. The CRA wants the land they own to have some sort of ownership in the community and want more people to reside in the community to build equity. He thought half of the mortgage is principal with which they would build wealth. He had attended the Racial Equity Institutes and the issue is compounded for minorities who cannot obtain homeownership. He noted the north parcel and trying to provide homeownership opportunities there on a market-rate condo basis. If there was a joint venture, the CRA could be a partner and provide Tax Incremental Funding (TIF) if the units did not sell. Mr. Swezy explained the CRA owns two large configurations of land in two locations, one of which was where they were proposing to build a multi-family development. There are many smaller lots that do not have the scale, but would be suitable for townhomes. Centennial has built smaller residential developments in Miami and he mentors small minority developers. He helps them with it, finances some of them and walks them through the process. He did not mind doing something like that with a contractor on the residential component, but the bigger development has a $19M contract. It carries a lot of financial risk and it carries a $30M note he has to sign and to sign personally on. It is scary to work with someone he does not know, but he would be glad to work with minorities on smaller developments. Chair Grant thought Mr. Swezy did not have to work necessarily with the contractors, only the subcontractors. It did not matter either way to Mr. Swezy as long as it was something smaller that could be managed. There would be no age restricted units. Chair Grant noted the southern parcel has 127 parking spaces and thought if there was more funding, Centennial could build a parking structure. He hoped the Board would obtain TIF or Florida Housing Finance Corporation (FHFC) funds to obtain density and wanted it in the Purchase and Sale Agreement. Vice Chair Katz questioned if Centennial submits and receives the 9% tax credits, what ability the Board had to modify the project. He agreed excess funds should be reinvested in the project. Mr. Swezy responded the Board could change the development and make it bigger and nicer. Centennial was requesting the maximum allocation for this project. If the Board wanted to contribute more, they could. In reference to the Community Benefits Agreement (CBA), he did not know what else could be done besides a job fair to attract qualified skilled labor or attempt to make the developer hire and train unskilled labor. He felt if people were qualified, but do not show up for the job fair, there was not much else. He thought it could complicate the project and cause issues. He was looking for options. 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida May 14, 2019 Board Member Romelus noted the CRA holds a job fair, no one shows up, and the project is constructed anyway. The other way to think is the workers are out there, but they are not coming in and the Board should try to solve the gray area in between. This was the purpose of her suggesting a joint venture. The project would be part owned by a licensed, bonded, experienced general contractor to hire an experienced work force. She thought they could have an internship or apprenticeship for individuals in the area who would like to know more, who could assist skilled laborers. It would create jobs while teaching and it could be similar to South Tech apprenticeships. She recalled the Board was proposing to give land away for$10, which would be the Board's contribution for creating educational opportunities for those who do not have the ability to go to South Tech or any other skilled trade school. A local general contractor would have the skill set available and have the knowledge and relationships in the community to hire from the community and give residents a hand up. She agreed to obtain information in the next few weeks. Attorney Duhy wanted to see the information, but advised local governments have the ability to do some of these activities, but there are legal constraints on CRAs. They had this conversation when they discussed job training. It is frustrating for the Board, but there are legal limitations. Board Member Penserga agreed with many of the sentiments to hire locally and have an educated and skilled work force. There are still a lot of unknowns. He favored keeping track of the people who show up to the job fairs, listen to their concerns and see where in the pipeline they drop off. They need to collect information to identify where the challenges are. The document says the CRA will notify and refer to job fairs and thought it was inadequate. He was unsure that was the role of government, but thought they could look into non-profits, and other community organizations that provide scholarships for those wishing to enroll in apprenticeship program, but lack the funds. Vice Chair Katz commented the local building trades have apprenticeship programs and he agreed to provide some of those contacts. It could be a way for the CRA to leverage its investment. It is a highly successful group. Board Member Romelus would support maximizing the project and liked the idea of increasing the density and allowing, potential home ownership. Board Member McCray explained when they started the Sara Sims project, the CRA held job fairs and individuals came, but the project fell behind because no one came forward. There was only one African American group that came forward to put their skills to work. When they start the project, they will need to keep it going and not fall prey like the Sara Sims project did. Ms. Rogue explained when the community is built, they hire local people and provide jobs and training for leasing agents, property managers, and maintenance individuals are sent to compliance training. Corporately, Centennial Management handles that and they will provide local opportunities for training to work, and learn a real skill. Board Member Romelus agreed, but thought at most, only 10 to 15 jobs would be created. She thought 11 Meeting Minutes Community Redevelopment Agency Board Boynton c , Florida May 14, 2019 there was no equity or the ability for homeownership. Ms. Rogue pointed out they achieve homeownership with the smaller lots. The skills residents learn with Centennial can be taken anywhere. Board Member Romelus wanted to create a joint venture agreement to allow for partnership and equity in this development project. She also wanted to find a way to build the project at the maximum density and potentially allow for homeownership in this development, not just the outside lots. If they cannot agree, she wanted it stated because she did not want to move forward with the project with a different mindset. Mr. Swezy explained the requests were not mentioned in the RFA. He advised they held a lot of meetings, and at the end of the process Centennial was hearing about this now. He reiterated the project is a $19 million construction project and no one knows who the joint venture partner would be. Mr. Swezy was signing a $30 million personal guarantee on the development. He cannot do so blindly and did not want to enter a venture with someone he does not know or has vetted. He responded he would not be willing to build the project with a partner and thought no prudent individual would. He could do so on smaller projects and take baby steps and mentor and train individuals, but he cannot give a percentage of the deal to someone he does not even know, that would be a partner with him, that could sue him in court and block his construction. Vice Grant Katz agreed with Mr. Swezy and requested they do as much as possible for local hires. He wanted to move forward with the project and hoped they put more emphasis on the local hiring aspect as the project is developed. He would do nothing to stop or slow down what was presented. He did not want it to fall through the cracks again. Chair Grant summarized some of the terms as it pertained to the Purchase and Sale Agreement. It indicated there is 10K square fleet of leasable/commercial space, but the plan has 2,500 square feet of open space, which he did not believe was leasable. Mr. Swezy commented it should have been 8,500 square foot of commercial/leasable space. The 2,500 square feet of open space or community center could be retail. The Board could determine which one it would be. As to future ownership, he noted affordable housing recipients pay lower rents than the market rate. The Palm Beach County Housing Authority also permits individuals who successfully pay their lease for a year or two, to utilize homeownership down payment assistance from the State if they have the income to support FHA loans at 3.5%. The financing and credits for the project, regardless of how they were attained, should remain with the project. They should max out the TIF funding for the project and wanted to ensure those funds would result in the best project possible. If the Board gives the TIF to Centennial, Centennial could help the residents with ownership. The CBA is not just for jobs. It is also career training that may not be in construction and property management. The Community Caring Center and Pathways to Prosperity (P2P) was available and there are incubator grants. He thought Centennial should work with local and county entities, such as CareerSource to create partnerships regarding retail establishments. 12 Meeting Minutes Community v to n Agency Board Boynton Beach, Florida May 14, 2019 Chair Grant announced he wanted to put those items in writing so it would detail best efforts includes trying to find local non-profits for career education. He explained he was at an event at the Milagro Center in Delray Beach. It is an affordable housing community with their own non-profit. Centennial also has a non-profit. He thought the CBA should be entered into with the non-profit so a portion of the funds are used for the children living in the community. Ms. Rogue explained they would like some time to think about it and determine the impact. Mr. Swezy explained the concept was not bad, but they are being hit with several items that were not in the RFA. They know they are active in the community and they give back to the community. They are not a quick develop and leave operation. He gave a success story of an employee who started out at $200 a week who is wildly successful now. Another employee started out at$55K who left and got a higher paying job. Chair Grant wanted the word best efforts in the current contract and did not want the best efforts to stop once the project is completed. Centennial can work with the Board Attorney on-the language. Ms. Rogue explained they have breakfast and lunch programs for youth in their communities during the summers and in some communities, they offer back to school programs. They care about the communities they run. Board Member Romelus wanted the Board to push the envelope and did not want the project rushed. She feels that the community has been through much. She suggested with a joint venture, Centennial's liability would go down and the partner would also be able to share in the upside when the community is fully established and profitable. She wanted an equity partner, not just a recipient of an affordable housing complex. Most of the comments made were the community was afraid of the project becoming a run-down project similar to what occurred in the past. There was no opportunity for pride and ownership. She explained they were not forcing Centennial to partner with someone who is unknown or unqualified. She wanted him to find someone he could work with. She thought if the Board could do something to ensure equity was incorporated into the development, it should be included. She thought the Board should not treat this project like the Town Square. She requested the Board permit her to bring back examples and information to see if it was something they could pursue. Board Member McCray pointed out the project Board Member Romelus referred was a County Housing project and there was no project buy in. Minister Bernard Wright did not have a problem with a CBA, but he asked which community Board Member Romelus was speaking about. He has never heard Board Member Romelus speak to the extent she has regarding a CBA until Irwin Cineus was paid to organize inside of the community. He noted Board Member Romelus does not live in District 11 and she was not familiar with its history, but she speaks about the District as if she has authority. He thought if speaking about the neighborhood, someone should consult him, Mr. Hay or someone from District 11. She has taken authority over District 11 from the District If Commissioner. He has seen the community when it was thriving, then nothing and it has been dead for too long. He thought she was holding the project back 13 Meeting Minutes Commundy Redevelopment Agency Board Boynton Beach, Florida May 1 , 2019 because of what Mr. Cineus was saying. They are not trying to experiment on anything except having resurrection and restoration in the Heart of Boynton (HOB) that would serve the people as best as possible. He wants the community developed and wants it to be a community again. He asserted she is not qualified to carry the baton. He supported keeping the project moving. Having a CBA that includes him was fine, but he did not want the project to be an experiment. Woodrow Hay, 427 NW 5th Avenue, agreed with Minister Wright. He was here for 50 years and it is time for development. He understood where Board Member Romelus was coming from, but this is small in comparison to how the development would benefit the community. He was overjoyed about the input from the meetings. Vice Chair Katz advised he was voting for the project to move forward today. It was a good discussion about a meaty version of the CBA and local hires, but that level of detail should be included in the initial request for applicants to respond to the RFA. He did not favor tacking on dramatic changes. It has to be there when the applicants read the proposal request and that time had already passed. He was ready to vote on the project two months ago, but the Board opted to delay the project by 60 days and at that time, he indicated he would support the program once individuals had their say. He did not want to include additional conditions. He wanted to move forward and noted the landscape to the west and east would provide ample opportunities for future portions of the MLK Corridor to incorporate other requirements. Board Member Romelus explained at almost all of the community input meetings the number one issue raised was the community did not want another run down project and what ability they would have to be involved and play a key role. She was not trying to step on anyone's toes and was offended at Minister Wright's comments, since she was an.African-American woman. She was concerned for the residents. She favored moving the project forward and did not intend to stall it. She only sought to allow the community to play a role in the product. As they build more communities, they do not want to gentrify communities so people who live in the community can remain. Board Member Penserga attended both community input meetings. The community favored the project; their concerns were heard, addressed and the vast majority of their requests were included. He is supporting the project and thought it should have gone forward 10 years earlier. There was no question about the need for the project and the impact the project will have. The concerns about hiring locally, are not unique, it is a larger concern. He proposed the Board will have to work on it with the community partner(s). He did not think this particular developer or any single developer should be entirely burdened with the entire solution. Board Member McCray pointed out the Board held these meetings 25 years ago and he appreciated former Commissioner Hay's and Board Member Katz's comments. 14 Meeting Minutes Commun4 RedevelopmentAgency Board Boynton Beach, Florida May 14, 2019 Chair Grant thanked Centennial for working with them. He expressed concern and explained when Family Dollar was built, the CRA gave them $1 million worth of land in exchange for the store. When it was completed, they sold it for $2.5 million and left the community. He explained the Board was trying to avoid this situation. Attorney Duhy explained she passed out a summary of a larger agreement that is a draft and she referenced the two-page term sheet. Preliminarily, there is the sale of the project for $10 with a closing date. in the project section of the document, she described the residential project and the commercial portion of it and some other features. The RFP will be incorporated. She made the correction to the leasable commercial square footage, which was 7,500 square feet. There is an understanding staff will look into opportunities, if additional CRA funds should become available as a result of awards of tax credits, to increase the project's size and number of units within the scope of the current Code and zoning. The direction is to ensure that money received is reinvested so the project would be expanded. She will add to local contractor/local jobs the language in the current draft, and clarify it and add post development benefits to ensure the developer will be with the project over the course and lifetime of the project and not just through construction. Chair Grant wanted Board consensus to have a CBA after construction and to work with Centennial's or other local non-profits. Attorney Duhy explained, in reference to the CBA, she needed to ensure that was the right vehicle to use and they will have to negotiate it. Ms. Rogue explained they have a land use restriction with the State they cannot conflict with. They have certain requirements, which could mandate they have to provide day care or computer classes. Chair Grant understood if Centennial did not get the 9%, or if it is full TIF, Centennial will still have the agreement with the CRA. He wanted the language with Centennial and the State incorporated with the CRA. Mr. Swezy commented each year the RFA comes out and there are some differences. The questions are very technical that he cannot answer. He did not want any conflicts with the land use agreement. If receiving SAIL funds, the CRA will in effect, ask the State to subordinate the mortgage for the land use agreement and Mr. Swezy did not know if the State would be willing to do so. Chair Grant wanted to ensure that the land and TIF would benefit the community. Ms. Rogue commented Centennial can not make the commitment to include it in the Purchase and Sale Agreement right now. Attorney Duhy explained the direction from the Board is to make clearer the requirements for job training and see if there is anything else they can include as an open item. Board Member McCray asked if the CBA is legally attached to the agreement and learned it was not. Attorney Duhy noted the next option was funding, which are similar to Ocean Breeze and the last three items provide for termination. If the project is not successful, it would provide the opportunity to repurchase the properties acquired by Centennial for the contract price so the CRA will retain ownership for a future project. Mr. Simon pointed out the CRA does not know how much Centennial paid for the properties. He did not know how to put a cap on the funding and did not want that exposure. Attorney Duhy suggested 15 Meeting Minutes Community e v I n Agency Board Boynton Beach, Florida May 14, 2019 the CRA bring back a proposal for a feasible cap so financial liability is a known entity. That will come back as a recommendation. There would be a reverter and right of first refusal to purchase included in the contract. Mr. Simon noted due to the Land Development Regulations, there would be only so many additional units that could be added. At this time, it would take 124 to a maximum of 161 units for both sites. There are 24 units more on the north side above commercial, which would need changes and the south side could have 100 units. The maximum that could be built there would be 137 units and Centennial would need 215 parking spaces for 137 units per Code. Chair Grant commented if they obtain the 9% tax credits, the CRA did not want the $2 million for the land, and instead it would be reinvested in the project. It did not have to be residential, it could be commercial. There could be a two or three-story commercial location as a mixed-use project, which would also change the parking. The Board still has the opportunity to provide TIF to improve the project. Vice Chair Katz commented the plan is to go with CRAAB recommendation for 9%, SAIL and TIF. Chair Grant was fine with Centennial having two attempts at funding. Mr. Simon explained if Centennial is unsuccessful this year and the Board decides to go forward without a second application, the Board could. The funding for the MLK corridor could be used on multiple projects. Centennial was asking for $1.2M as a local government contribution, which could fluctuate according to the State. The CRA would want funds in reserve to purchase the properties back, and if adding TIRFAITIF to the project, the commercial component could have an offset to lower the rents. The CRA could pay for the construction of it because the 9% tax credit cannot be used for commercial and then turn ownership over to the developer as the manager or however the Board determines. Centennial figured rents at $10 a foot with a minor build out. Attorney Duhy suggested if the Board is comfortable about contributing funding for commercial, they can make proposal in the draft agreement towards that end. There were no objections. Mr. Simon clarified the actual line item available for the MLK Corridor is $1.6M and there is $800K in the Other Redevelopment line item. There was agreement on the conditions as discussed. B. Consideration and Discussion of Notice of Extension of Tax Increment Revenue Funding Agreement between Ocean One Boynton, LLC and the Boynton Beach CRA Chair Grant commented the rider in the Deed states if something was not done within a certain time, the developer will build a park on the land. Attorney Duhy explained the Board approved two separate agreement with two timelines. The Purchase and Sale agreement was for a small property to be combined with property already owned by the developer to develop the project. As part of the agreement there was a requirement for 16 Meeting Minutes Community v ! Agency Board Boynton Beach, Florida May 14, 2019 the purchaser to commence construction of the project by January 16, 2020, failing which they build a public plaza as specified in the Purchase and Sale agreement by 2021. The next component was the Tax Increment Revenue financing and a development timeline, which requires commencement of construction no later by January 2020. The agreement automatically terminates if construction has not started by January 2020. The developer requested this item be removed. When they make the request, it will be at the Board's discretion whether the Board wants to amend any of the terms of either agreement. According to the letter the Board received, the only agreement they asked to amend was the TIF and not the Purchase and Sale agreement, which has the plaza requirement. Vice Mayor Katz requested to table the item for 60 days to become familiar with the implications and the practical utilization of the land by the City or CRA. He thought the City could utilize the land better and they did not need to act on the item until December. Chair Grant commented the developer was working with the City and CRA about using the land for parking. He wanted to be clear the deadline is January 2020 for the commencement of the park or items they are renegotiating. Motion Vice Mayor Katz moved to table the item to the July meeting. Board Member Penserga seconded the motion that unanimously passed. C. Consideration of a Letter of Interest Submitted by Tri-Unity Smart Homes for the CRA Owned Property Located at NE 4th and NE 5th Avenues, a/k/a the Cottage District Chair Grant inquired if the developer was able to pay for the utilities needed. Ms. Shutt explained infrastructure was not mentioned in the letter. Vice Chair Katz favored pursuing the original project when the infrastructure is ready. Motion Vice Mayor Katz moved to reject the letter of interest. Commissioner McCray seconded the motion that unanimously passed. D. Neighborhood Officer Program 2nd Quarter Report for FY 2018 2019 Motion Commissioner McCray moved to accept, Vice Mayor Katz seconded the motion that unanimously passed. Chair Grant thanked the Neighborhood Officers for all they do. 17 Meeting Minutes Community Redevelopment Agency Board Boynton h, Florida May 1 , 2019 E. Discussion and Consideration for Amendments to Business Development Event's Vendor Policy Motion Board Member Romelus moved to approve. Vice Mayor Katz seconded the motion. Ms. Coppin explained the changes updated the vendor policy to be in-line with business promotional events approved for 2018/2019 and to replace all references of special events with "Business Promotional Events." There are other changes that would make the language in the document more concise by grouping together related content. Staff would reformat the language for non-profits or fees so all is under one group heading. Since the events department is only focusing on business promotional events to promote CRA District business, staff proposed the vendor pricing breakdown be updated to allow the vendor fee to be waived for businesses that provide them with a valid Business Tax Receipt showing they are located in the CRA District. The last change would allow for an exception to the prohibited merchandise section. Currently, the policy states no weapons are allowed at the events, which will continue, but to add an exception for Pirate Fest, which would allow for period weaponry and domestic knives and non-firing replica guns. Chair Grant wanted a deposit that was reimbursable so that if a business indicates it will attend and then not come, the CRA does not lose out of the fee. It would be 100% reimbursable. Mr. Simon explained CRA businesses were paying the flat cost of what it would be for the tent and lights as a regular vendor. Another out of town vendor would pay slightly higher. If the deposit covered the CRA's cost, they would not have to pay a higher amount and the CRA would not lose money. Mr. Simon could lower it to cost only. It is difficult to get business for events like Blarney Bash, because it is transitioning to a business development event, similar to Pirate Fest. It would be more enticing to have the cost at zero. Vendors sign a contract. The standard cost is $116. Chair Grant suggested charging a $50 refundable deposit. Vote The motion unanimously passed. 15. New Business A. Consideration and Recommendation of the Letter of Intent to the Palm Beach County Housing Authority to Assist in the Development of Properties Located at 404, 406, 408, and 410 NW 12th Avenue Mr. Simon explained the Board directed a letter be sent to the Palm Beach County Housing Authority to enter into an agreement or provide assistance, financially or professionally, for the development of single-family and affordable housing. The letter isattached and it is clear the CRA is asking the Housing Authority to review the request. 18 Meeting Minutes Community v to nt Agency Board Boynton ace Florida May 14, 2019 One suggestion would be for the CRA to be placed on the Housing Authority's agenda and Mr. Simon requested adding language to the letter so staff could make a presentation to their Board. Chair Grant noted the letter was not a letter of intent to develop the property, it was a letter of intent to assist with the development of the property. The Board wanted to move forward and advised the CRA was willing to buy the land and/or issue their own RFQ. The letter failed to mention the CRA owns the adjacent property and the CRA needs to determine how many homes they can build, and type. After further brief discussion, there was agreement the letter would be revised and brought back to the Board in June with more specificity. Staff needs to know the maximum number of homes that can be built, if they have affordable housing requirements or homeownership opportunities and that the CRA has financing in excess of $500,000 for construction of homes for community residents. The CRA would finance them and then through the sale, be reimbursed. The letter will contain language regarding acquisition and self-funding the project. The Palm Beach County Housing Authority has not done anything with the land in a long time. The letter should have stronger language indicating the CRA will do something with the land if the Housing Authority does not. All of the Board Members will be signatories on the letter, which will also include the request to be on the agenda. B. Consideration of Resolution 19-02 for Match Funding for the 2019 Florida Department of State Division of Historical Resources Special Category Grant for the Historic Woman's Club of Boynton Beach Motion Board Member Romelus moved to approve. Board Member McCray seconded the motion. Ms. Shutt will come back with other available grant applications including programing and other uses for the building. Vote The motion unanimously passed. C. Consideration and Recommendations of Purchase for the Property Located at 417 N. Federal Highway This item was removed at the request of the applicant. D. Consideration of Responses to a RFP/RFQ for Auditing Services Vicki Hill, Finance Director, issued and RFP/RFQ for auditing services and received two responses, one from the current CPA firm of Sanson Kline Jacomino Tandoc and Gamarra LLP, and one from Grau and Associates. The Audit Committee consisted of Mr: Simon, Ms. Hill and Ms. Jenkins. The Committee ranked the responses by the criteria and recommended staying with the current auditor. Chair Grant asked why Sanson Kline 19 Meeting Minutes Community Redevelopment Agency Board BoyntonBeach, lori y 14, 2019 et al received a score of 93 compared to the 85 for Grau and Associates. Ms. Hill explained Sanson Kline has audited CRA firms and Grau and Associates has not. There was a $3K difference in fees and because Grau and Assosicates did not audit CRA and the new legislation from the State, staff wanted to ensure the CRA would comply with all that was asked for. The contract is for three years and three (3) additional one-year extensions at the same cost. Chair Grant liked the staff recommendation. Board Member McCray agreed. Motion Board Member McCray moved to approve. Vice Chair Katz seconded the motion. Board Member Romelus was concerned. She is Chair of the Solid Waste Board. The Board's auditor was the other firm and they had three years of clean audits. They did have experience with government agencies and she would have went with Grau in light of their lower offer. Vote The motion unanimously passed. 16. CRA AdvisoryBoard A. CRA Advisory Board Agenda - May 2, 2019 B. CRA Advisory Board Meeting Minutes -April 4, 2019 C. Pending Assignments D. Reports on Pending Assignments 1. Consideration of Equitable Economic Development Grants E. New Assignments 17. Future Agenda Items A. Consideration of a CRA Board Retreat B. E. Ocean Avenue Lighting C. The Ocean Breeze East Project Update 20 Meeting Minutes Community Iopment Agency Board Boynton cFloridamomy 1 , 2019 D. Consideration of Purchase and Sale Agreement with the Community Caring Center Boynton Beach, Inc. (CCC), for their property located at 145 NE 4th Ave, Boynton Beach, Florida F. Discussion Regarding an Educational/Job Training Grant 18. Adjournment Motion There being no further business to discuss, Board Member McCray moved to adjourn. Vice Chair Katz seconded the motion that unanimously passed. The meeting was adjourned at 9:09 p.m. Catherine Cherry Minutes Specialist 21