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Minutes 09-10-19 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD IN THE INTRACOASTAL PARK CLUBHOUSE 2240 N. FEDERAL HIGHWAY, BOYNTON BEACH, FLORIDA ON TUESDAY, SEPTEMBER 10, 2019, AT 6:30 P.M. PRESENT: Steven B. Grant, Chair Mike Simon, Executive Director Justin Katz, Vice Chair Thuy Shutt, Assistant Director Christina Romelus, Board Member Kathryn Rossmell, Board Counsel Tyrone Penserga, Board Member Mack McCray, Board Member 1. Call to Order Chair Grant called the meeting to order at 6:30 p.m. 2. Invocation Board member McCray gave the invocation followed by the Pledge of Allegiance to the Flag. 3. Roll Call A quorum was present. 4. Agenda Approval A. Additions, Deletions, Corrections to the Agenda None B. Adoption of Agenda Motion Vice Chair Katz moved to approve the agenda. Board Member Penserga seconded the motion. The motion unanimously passed. 5. Legal Kathryn Rossmell, Board Counsel, announced there are statutory changes pertaining to CRA's that go into effect October 1, 2019. The non-profit grant program needs to be reformed. Staff would recommend reallocating some of the funds within that program. The CRA is required to focus on physical/hard improvements rather than soft grants the CRA had in the past. Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 6. Informational Items and Disclosures by Board Members and CRA Staff: A. Disclosure of Conflicts, Contacts, and Relationships for Items Presented to the CRA Board on Agenda Chair Grant spoke with the congregation at a United Church of Christ service two weeks ago. No other disclosures were made. 7. Announcements and Awards A. 2019 Florida Festivals & Events Sunsational Awards Tracey Coffey, Marketing and Business Development, advised this past August the CRA attended the above conference and received 10 awards for marketing as follows: • 1St Place, Annual Report • 1St Place, Boynton Beach Haunted Pirate Fest and Mermaid Splash radio ad • 2nd Place for the photo advertising the Haunted Pirates Fest and Mermaid Splash • 2nd Place for Pirate Television (PTV) Social Media and YouTube • 2nd Place for promotional t-shirt for the Holiday Boat Parade • 2nd Place for Calling All Captains flyer • 2nd Place for the event map for the Haunted Beach Haunted Pirate Fest and Mermaid Splash • 3rd Place for the Public Relations and Media Campaign for Haunted Pirate Fest and Mermaid Splash • 3rd Place for the promotional mailer for the Boynton Beach Haunted Pirate Fest and Mermaid Splash • 3rd Place for the Billboard advertising the Blarney Bash There were 190 events submitted across the state. The agenda item broke down the statistics by county, how many municipalities entered and how many awards those municipalities received. The CRA submitted 23 events and received 10 awards as contained in the agenda item. There were 4,500 events and fairs in the State. 8. Information Only A. Marketing and Business Development Campaign B. Public Relations Articles Associated with the BBCRA C. Business Development Board Membership Dues 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 9. Public Comments Susan Oyer, 140 SE 27th Way, noted the home on NW 5th Avenue and Seacrest, burned down and understood the building would be demolished. She asked if the CRA would buy the property since it is directly across the street from the Cottage District. Ms. Oyer also commented she sits on the Sister Cities Board and is in charge of the Farindola, Italy Committee. She announced a team from Farindola will be visiting the City sometime between the 20th and 30th of November. She hoped they would meet all of the Board Members. They will be coming at different times for different stays and she will arrange a great agenda and the official paperwork signing. Minister Bernard Wright, Bernard Wright Ministries, commented Seacrest Court is very dark and the residents want lights. He called Board Member McCray. Board Member McCray advised Andrew Mack, Director Public Works and Engineering was contacted and they are waiting on FPL. No one else coming forward, public comments was closed. 10. CRA Projects in Progress A. 8th Annual Boynton Beach Haunted Pirate Fest & Mermaid Splash Event Layout & Parking Overview Mercedes Coppins, Business Promotions and Events Manager, was present with Azim Hussain, Marketing, Special Events and Business Development Assistant, and Stewart Auville, Standing Ovation, the CRA's contracted event management firm for the Pirate Fest. The item is a review of the project's progress in response to a request made at the March meeting. The Board Members reviewed a site map for the event showing logistical and key areas, such as entertainment, restroom, information booth locations and others. She pointed out 12 live entertainment and 100 vendor spaces for business development, retail and food vendors. There are two child activity zones, two information booths, two restroom trailers as well as 70 port-o-lets and 15 cooling fans. Parking locations were viewed around the event site. Disabled parking and shuttle service was available from park and ride locations. Several park and walk locations were reviewed. Staff is continuing to work with other sponsors, which she listed. Board Member Penserga commented District IV residents do not know about the event and asked how the event is marketed. Ms. Coppin explained the CRA uses utility inserts to water customers. There is signage throughout the City and west of I-95. Targeted Facebook promotions and ads targeting specific zip codes and demographics are used. Ms. Smith-Coffey pointed out staff sends 17,000 every door direct mailers in the western community, three weeks before Pirate Fest. Chair Grant explained Palm Tran attended a City Commission meeting to discuss their new Sunday service for Route 73. There are public transportation options and he inquired 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 if staff contacted Palm Tran so their riders would know they could take Tri-rail and use the bus route to attend the Pirate Fest. B. The event will be in the same location as last year. Board Member McCray was concerned about safety. Ms. Coppin responded the event is now between NE 3rd Street and Federal Highway, being condensed and away from the Town Square construction. The Police Department is in contact with Brightline. Thuy Shutt, Assistant CRA Director explained staff coordinated with the High School construction and design team to ensure they secured the site. C. Economic Development Update Mike Simon, Executive Director, CRA, advised there was $544,356 budgeted for the Economic Development Grants last year and so far they have awarded $417,332, leaving a balance of$127K if tonight's applicants are approved. He suggested rolling that amount forward. C. Historic Woman's Club of Boynton Beach (HWCBB) Stage Wall Mural Update Ms. Shutt explained there is an existing waterside landscaped themed mural in the back of the stage at the Woman's Club that was identified to be repaired and painted in more neutral, flexible colors. The Board requested staff research if the mural had historic value. Staff learned the mural was painted in the late 1950's by Bernard T. Thomas, who was well known for his western paintings of America and his naturalistic paintings. She reviewed his biography noting his work was commissioned in Wyoming. He relocated in the 50s to Boynton. The mural sustained damage from a roof leak and the mural was repaired in 2015 by a local artist and her students. Staff received quotes to repair the mural from a historic preservation/conservation restoration specialist. There are options to preserve the mural. Staff's concern is the structural and/or stabilization of the piece to prevent cracks from occurring again. The fiscal impacts were included in the meeting backup, which Ms. Shutt reviewed. Chair Grant asked about the Mayor Mural and learned it was previously displayed in the dining room of the Woman's Club. Mr. Simon suggested it would look good in a more prominent location in the new Library, City Hall or the Old High School. Mr. Bernard was commissioned to paint the mural for the Woman's Club; however, the piece is unsigned. Board Member McCray did not want to lose the value of the art, noting sometimes the value increases. Ms. Shutt commented staff does not know what extent the piece was restored in 2015. Members of the Woman's Club advised it was substantially damaged, but there was no documentation where the cracks may have occurred or pictures of the piece being restored. Mr. Simon suggested leaving it as is. If there is a wedding, concert, big band or square dance event, an existing backdrop screen in front of the mural could be used if it does not match the aesthetics of the event being held. The wall is not 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 compromised. The back of the stage would be neutral to broaden the use of the building. The curtain needs to be replaced. The green rooms next to the stage would be painted and refreshed as part of the Special Category Grant and staff will replace the flooring, if possible. The windows were replaced and would be painted. If using the Special Category Grant funds, the restoration has to replace with similar materials. If using other funds, they could do much more. Chair Grant spoke to Ms. Coles-Dobay and learned the mural has historical value. He supported the Board to figure out what they want to do with the Women's Club before making changes and was fine with leaving it the status quo for now. Motion Board Member McCray so moved. Board Member Penserga seconded the motion. The motion unanimously passed. 11. Consent Agenda A. Financial Report Period Ending August 31, 2019 B. Approval of CRA Board Meeting Minutes -August 13, 2019 C. Approval of Renewal for Delray Finest Signs & Graphics, LLC's Consultant Agreement for Graphic Design Services D. Approval of Commercial Rent Reimbursement Grant Program in the amount of $21,000 for Coastal QSR, LLC d/b/a Taco Bell located at 2319 S. Federal Highway Board Member McCray pulled this item. E. Approval of Commercial Property Improvement Grant Program in the amount of$50,000 for Coastal QSR, LLC d/b/a Taco Bell located at 2391 S. Federal Highway Board Member McCray pulled this item. F. Approval of Commercial Rent Reimbursement Grant Program in the amount of $21,000 for Common Grounds Brew & Roastery, LLC located in One Boynton at 1517 S. Federal Highway G. Approval of Commercial Property Improvement Grant Program in the amount of $25,000 for Terre Noire Properties, LLC located in Marina Village at 625 Casa Loma Blvd, Suite K 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 H. Approval of Commercial Rent Reimbursement Grant Program in the amount of $8,400 for Angel's Secrets, Inc. located in Ocean Plaza at 640 E. Ocean Avenue, Unit 9 I. Approval of Commercial Rent Reimbursement Grant Program in the amount of $18,128.40 for Tokio Inc. located in One Boynton at 1351 S. Federal Highway, Suite A-307 12. Pulled Consent Agenda Items D. Approval of Commercial Rent Reimbursement Grant Program in the amount of $21,000 for Coastal QSR, LLC d/b/a Taco Bell located at 2319 S. Federal Highway E. Approval of Commercial Property Improvement Grant Program in the amount of $50,000 for Coastal QSR, LLC d/b/a Taco Bell located at 2391 S. Federal Highway Board Member McCray advised he voted against this item when it was on the last agenda and he would vote against it again. Vice Chair Katz asked if the Board had any idea if the applicant met the objective criteria regarding the grants. There had been discussion about grants, which are supposed to be for small businesses. He noted Taco Bell is a chain, although it is a franchise and there are other businesses such as coffee shops, local restaurants, and doctor's offices that may better benefit from the grants. He did not think $71 K for a Taco Bell met the intent of the grant. Attorney Rossmell explained there was leeway and a grant application is not a guarantee of funding. She advised if those were the reasons why he did not support the grant; the Board could do as it pleased. Vice Chair Katz commented he does not support grants for Taco Bell or chains and national type brands. He expressed it was for small local businesses. Chair Grant commented the purpose of the grant is to assist businesses coming to Boynton and this property was a vacant lot for a long time. The Board could award any amount the Board deems fit. By spending the money, the CRA will get a project sooner. He did not think they could put conditions on the economic development grants. Attorney Rossmell understood the grants were made conditionally. Chair Grant noted even if a member did not want a Taco Bell or a franchise, it is owned by a business owner and it would improve the economic climate in the City. Vice Chair Katz explained he voted for the project, but did not know if opening a Taco Bell needed a financial incentive. He wanted to know if there are legal implications to vote the item down, based on his concerns. Attorney Rossmell responded awards are at the Board's discretion whether it does or does not advance the goals of the CRA. If it does not advance the goals, it should be not be approved. If the request does, the Board can approve it. Board Member Romelus agreed with Board Member McCray and Vice Chair Katz. She also voted against the project. She believes the Board's mission is to help locally owned and grown businesses to prosper. She did not think the Board was sending the proper 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 message. She noted the Taco Bell was getting the bulk of the funds, but she did not think it met the mission to assist local businesses that need and could use the funds. The money could be rolled over for other mom and pop shops to help boost the economy. Chair Grant disagreed and proffered the item would eliminate slum and blight and there is a developer to build a project. He commented the CRA gives Tax Increment Funds to businesses that are not local and there multi-millionaires the CRA has also given millions in assistance to, and they are funded. He thought it was hypocritical so say they would not fund the application because it is a food chain or the Board would not fund a franchisee who could be a small business. Motion Vice Chair Katz moved to table to receive iron-clad clarification that voting against the item would not lead to a legal risk. He felt the grants were small business grants and it was not the same as TIF to him. The grants are to incentivize businesses who might not have located here, whereas a small business might. He felt national brands do not need the incentives. He moved to table until getting more clarification if they are legally bound to award the grant. Board Member Penserga agreed with Vice Chair Kat and seconded the motion to table. Board Member McCray reiterated he did not vote for the item and he would not support this item. Vote The motion passed. The item was tabled to the next meeting. Motion Board Member McCray moved to approve the remainder of the Consent Agenda. Board Member Penserga seconded the motion. The motion unanimously passed. Board Member Romelus requested Legal bring back clear language regarding the grant programs if the Board needed to amend them in the future. Attorney Rossmell agreed. 13. Public Hearing 14. Old Business A. CRA Board Discussion and Consideration of Executive Director's Annual Performance Review Tabled (7/9/19) 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 Motion Board Member McCray moved to remove from the table. Vice Chair Katz seconded the motion. The motion unanimously passed. Ms. Shutt explained the Board members were given forms to provide their review of the Executive Director. At the June 153h meeting, the agreement was for Mr. Simon to provide a listing of his duties and responsibilities as Executive Director. The agreement was last amended September 19, 2018. The fiscal impact was $145,800 with a car allowance of $250 a month. Board Member Romelus used the form, but noted it had Board Member McCray's name on it. Vice Chair Katz provided a verbal evaluation. He commented Mr. Simon continues to do a great job. Since taking the position, more was being accomplished and the Board was more productive. Mr. Simon exceeded his expectations and he wanted to renew the contract. He favored giving Mr. Simon whatever across the Board raise staff received, which was 4%. The amount of the raise was $5,832, bringing his salary to $151,632. Board Member McCray voted for Mr. Simon to transition from interim to Executive Director and has seen him grow. They were able to resolve disputes and he wished him well. Board Member Romelus agreed with Board Member McCray and thought Mr. Simon was doing a great job. She enjoys interacting with him, as he understands many different points of view. Board Member Penserga explained each time he wants to talk with Mr. Simon, he is available and they have robust conversations. They run through different scenarios. He noticed no matter how much he pushes, Mr. Simon remains neutral and apolitical. Chair Grant recalled Mr. Simon's efforts always to do better. When they have ideas, he is very responsive to the Board by email or phone and he ensures the Board and staff work together. He would like to see a list of properties for sale in the CRA District posted on their website so people know what is available and they could remove slum and blight. Mr. Simon commented he was honored and thanked the Board. Board Member Penserga asked how Mr. Simon's salary compared to other similar sized CRAs. Ms. Shutt advised it is in-line, or perhaps a bit lower. She worked for three CRA's and this is one of the best she has experienced. She advised salaries are based on his experience and TIF Funds CRA's receive. Motion Board Member McCray moved for a salary increase of 3.9999 rounded up (4%). Board Member Penserga seconded the motion. The motion unanimously passed. 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 B. Discussion and Recommendation of Fiscal Year 2019/2020 Budget REVISED Vicki Hill, CRA Finance Director, explained that after they complete their audit, they usually have an overage. The CRA received an email earlier in the day advising the Town Square furniture line item had $50K, which was reflected as a Fund Balance Surplus. The $71 K economic development grant applications discussed earlier in the meeting was tabled and those funds will rolled over for Business and Economic Development grants in the 19/20 fiscal year. The CRA Advisory Board met and recommended changes: • MLK Corridor was recommended for $275,097; • The additional change is Business and Economic Grants $289K; • Business Development and Promotional Events $602,380; • Marketing Business Assistance $67,137; • Boynton Beach Boulevard Streetscape reduced to $250K; • The Neighborhood Officer Program (NOP) $5757999; • Non-profit Organization Grants $75K; • Site work Demolition $40K; • Professional Development Service $35K; • Development Project Related and Legal $125K; and • Community Caring Center Relocation is $500K. Ms. Hill noted the Advisory Board wanted to add an extra officer instead of a civilian position to the NOP program. If the Board supported the recommendation, the amount would be $573,497 instead of $532,900 that was budgeted. Vice Chair Katz supported staying with the original proposals. The Police Department had put together a proposal and he wanted to see how it worked out. He did not want to stack anything on top of it and was not comfortable with the line items the Advisory Board was taking funds from. Board Member McCray agreed with the original proposals Board Member Penserga noted challenges with the NOP program and wanted to see if it was even feasible to fill positions the Advisory Board was trying to add. He also wanted a better understanding why MLK line item balance was substantially different. Mr. Simon stated it was to accommodate funding for the increase in the NOP. Michael Gregory, Police Chief, supported the proposal the Department originally put forth. They believe they can accomplish the plan operationally. The Department will be hiring October 1St, and they cannot fully staff the position as proposed. They would work on it through the year. He did not discuss it with the CRA Advisory Board, but would like to do so in order for them to understand what the proposal stood for. 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 Chair Grant thanked the CRA Advisory Board for the recommendations. He favored adjusting the Non-profit Organization Grant program, as it may need tweaking due to prohibitions on soft services such as career education and training, and more for brick and mortar. He thought the allocation the Board proposed was fine. Board Member Penserga asked where the funds budgeted for non-profit grants would be reallocated. Mr. Simon explained the Board could allocate it within the project fund to Economic Development Grants, acquisitions or anywhere else in the project fund now or as the year goes on. Board Member Penserga supported an allocation to Economic Development Grants. Chair Grant explained the Board was planning on changing non-profit grants to open it up to for-profit businesses and have other organizations, not just Habitat for Humanity and the Community Development Corporation, help with residential rehabilitation for several places in the Heart of Boynton (HOB) and other areas in the CRA District. He wanted to keep the line item at $95K. Board Member McCray agreed with Chair Grant. He explained to Board Member Penserga they always moved funds around. He favored the budget remaining the status quo. Motion Board Member McCray moved to approve the budget. Attorney Rossmell pointed out under the new changes to the law, there will be less flexibility to move funds around. The Board could consolidate all the grant funds to one consolidated grant program and within the program, the Board could distribute for statutorily appropriate uses. Board Member McCray amended his motion to consolidate the entire grant funding to one category called Grant Funding and accept the budget. Board Member Penserga seconded the motion. The motion unanimously passed. C. Consideration of Resolution N. R19-03 Adopting the CRA Budget for Fiscal Year 2019 — 2020 Motion Board Member McCray moved to approve. Vice Chair Katz seconded the motion. The motion unanimously passed. D. Consideration of Amendment of Terms for the Lease Agreement with the Boynton Beach Congregational United Church of Christ, Inc. for the CRA Owned Property located at 115 N. Federal Highway for Temporary Use REVISED 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 Mr. Simon explained the Minister and one of their Elders from the above Church requested the Board entertain an extension of the existing lease, which terminates on December 31, 2019. When purchased, the transaction contained an acquisition and post occupancy agreement to December 15, 2018, which the CRA signed. The request was to extend for 30 or 60 days. Reverend Jack Copas explained he is the new Pastor and they need another helping partnership. He thanked the Board and Mr. Simon for their efforts to assist them to remain at the site. He thanked the Mayor for his guidance. They have people connected with the Community Caring Center and the Church is there as a stable force for the community. Reverend Copas explained they are looking for an extension of six months to a year. The Church would appreciate whatever help the Board could give. They preferred up to 12 months. Vice Chair Katz noted the item is a 30-day extension from December 31St to January 31St and there are other things that may come up in the downtown. He did not want to restrict the ability of the CRA to use the building and the CRA was entering a critical phase in the downtown. He appreciated the Church. He would allow 60 days. Board Member McCray agreed with Vice Chair Katz and advised he could support 60 days. Reverend Copas was asking for time because they want to be part of what is happening in Boynton Beach and they want to continue their mission. The members have always been part of the community and that is where the people with the greatest needs are. They have 50 to 75 parishioners on the roll and 20 to 30 at services. Chair Grant noted the CRA paid the Church fair market value for the building. He spoke with the City Manager and Public Works and the CRA is spending $4,000 to $5,000 a month for the portables outside of the Library. He would like to charge $5,000 per month for the 60 days. Reverend Copas thought it would be great for six months, but it would still conflict with their timeline. Motion Board Member McCray moved to extend the lease for 60 days. The Church can come back and ask for further extensions and they would be charged the same rate. Board Member Romelus seconded the motion. The motion unanimously passed. Vice Chair Katz suggested the Church use the money to find an alternate location. E. Consideration and Discussion of the Letter of Interest Submitted by Bride of Christ Tabernacle Church for the CRA Owned Property Located on NE 10th Avenue Mr. Simon explained this was before the Board last month. The Church wants to acquire a CRA owned lot and vacant lot they have next to their Church. They offered to pay the 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 CRA full appraised value and construct a day care center for about 40 youth under two- years old and up to five-years old, five days a week, from 7 a.m. to 7 p.m. The facility is not a Sunday school or non-business related work. The Board assigned the item to the CRA Advisory Board and the Advisory Board supported the recommendation to sell the property to the Church with the caveat it is an active use. It will be open five days of the week and the use is not limited to Sunday use, which is not the intent of the Church. It is a business enterprise. The CRA is looking for activity on the street. Other than typical reverters and the first right of refusal clauses, other criteria could be the use start as a five days a week business. Board Member McCray commented the Board wanted something for the community, and he recalled the members indicated it would be for the Church members. He hoped that was changed. He asked staff how the use would play into the MLK Corridor study and if the property would be fenced off, as he did not want it fenced. Mr. Simon explained the Church provided a conceptual site plan to the City, which reflected a 3,600 square-foot, two-story building, with a drive through and parking for drop off. There is a playground behind the Center and they would use church parking lot for longer drop offs for parents. As proposed, it would not be a fenced property. Board Member McCray commented Church representatives advised they are charity or missionary, giving all their money away. He asked if the Church was missionary, how they could get a loan. Vera Marie Verna was present with two Church Trustees, and Robert Hill, the Architect. Ms. Verna explained she secured the loan, based on income audited by a CPA. An attorney had to present them to get the loan. They had enough income to pay for the mortgage. They put cash down. The Church was at the location for 25 years and finished the mortgage they had. Paying bills came first before they gave any money away. Board Member McCray commented they did not give all the money away. Board Member McCray recalled the Church indicated the daycare would be open for members of their congregation and asked if it would be a community day care center. Ms. Verna responded it would be a public community-learning center. He asked if the fence would be removed and if citizens could drive through. Ms. Verna responded they would remove the fence. Vice Chair Katz asked how many seats would be available to the congregants. Ms. Verna explained they estimated one to five parishioners might need the childcare as most of the congregants do not live or work in Boynton. They are from Ft. Lauderdale, Hollywood, Riviera Beach and West Palm Beach, and the parents have already secured day care where they live. The Church is offering VPK, which is funded for Head Start. There are 40 seats total and they need 40 paying students to pay the teachers. 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 Chair Grant asked how many members the Church had and learned they have 150 members attend services on the weekend. There are two services on the weekend and two during the week in the evening. Board Member Romelus asked why infant care was not offered. Ms. Verna explained it is not a daycare center per se; it is a learning center. When adding government financing for Head Start, it is a learning center. Six-week newborns to two years also old requires more resources to operate correctly. Of the 17 daycare centers she interviewed, some were offering infant care which was very expensive. Ms. Verna suggested the Center accommodate 40 youth because that is what they need to cover expenses. Board Member McCray requested confirmation 35 community seats were available to in the facility they are building. Mr. Anouce Nerenstat, Trustee responded it was. Chair Grant requested adding a reversionary clause, so if they sell the property for a learning center, the Board has the right to buy it back. It is not for adult day care. It is classified as day care for zoning. Board Member Romelus commented the Church is proposing to purchase the property at fair market value. As such, once purchased the Church could do whatever they wanted with it. They are attempting to build a children's service center. The Board is selling the property and is not losing funds. She commented there should be no stipulations on the property after the Board sells it to them. Chair Grant explained he wished they did that for several other properties. What the Board thought would occur, did not happen in the in other circumstances. Board Member McCray favored the reverter clause. He disagreed with Board Member Romelus as controls on MILK Jr. Boulevard were needed. Board Member Romelus maintained it is private property and they could do what they want. Motion Board Member Romelus moved to approve the purchase to the Bride of Christ Tabernacle Church for the appraised value. Vice Chair Katz seconded the motion. Vice Chair Katz expressed concern the Board was trying to improve MILK Jr. Boulevard. There are concerns it will become a private center for Church parishioners. He did not want to put restrictions on it, but asked for the record, if the Church planned to purchase the property and turn it into a private center for parishioners that denies access to the community. Ms. Verna advised she provided her plans and it has to be a commercial enterprise with a public facility. Board Member McCray asked if Ms. Verna was a member of the Church and learned she was not. Mr. Claude Maxine, Trustee, was available with another member. Board Member McCray wanted to hear from the Trustee, there will be access through the property and 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 they would do want they said they would if sold at fair market price. Mr. Maxine confirmed the plans would not change. The facility will serve the community. Vote The motion unanimously passed. F. Ocean Breeze East Update and Consideration of Purchasing Washers/Dryers for all Dwelling Units REVISED Mr. Simon recalled the Board's discussion regarding appliances and more specifically, washers and dryers in each unit of the development. The Board requested staff research what kinds of costs renters incurs to have a washer and dryer included in the unit, which was a $50 a month per unit rental fee. With 123 units, the cost is about$74K, which helps pay for the maintenance of the units and upkeep. The Board's intent was to try to provide as many amenities as possible if Centennial was willing to do so. Centennial was not in favor of the CRA entertaining acquisition of the units with washers and dryers and supplying the units with the washers and dryers because once installed, there is no one there to maintain the appliances if they break, leak, or cause other types of damage to the units. In theory, the appliances would be owned by the owner, and not Centennial. If the CRA wanted any arrangement to offset the cost of a washer and dryer in a renter's unit, it could be achieved through Tax Increment Funding (TIF) Agreement. Once the project is built, the Board could apportion a certain amount of the TIF to offset the operational expense to Centennial, not do anything at all, or use any other variation such as half of $50 a month or less. Board Member Penserga thought all units should have a washer and dryer, but thought $50 was cost prohibitive. He supported setting aside half of the cost and let TIF revenues offset the cost. He thought $25 was a reasonable compromise and the CRA could cover it with the TIF and not the current funds they have. Board Member McCray learned each unit would have hookups. Paul Milton, Centennial Management, explained they have learned the $50 a month for washers and dryers in similar communities with similar rents and income restrictions was very popular. Tenants had options to rent elsewhere or buy their own appliances, or not. Centennial allows tenants to bring in their own washer and dryer, but planned to have washers and dryers in most of the units. It was what the demand typically dictates. More than half the residents rent the units. Centennial favors providing, maintaining, and being responsible for the equipment, collecting the revenue for it accordingly. Underwriting the deal assumes a small amount of income from the washer/dryers and in the long-term, it is easier if Centennial handles it. Vice Chair Katz agreed with Board Member Penserga's suggestion to charge $25. 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 Mr. Simon explained the proposal to Centennial is when the development is operational and the building is appraised at its new value from vacant land to a $20M project, the tax increment collected from the increase will be more than the $73K. It could be in the $250K to $500K range. Staff would propose, after Centennial pays their tax bill, the CRA provide a reimbursement of a portion of the tax bill to offset the operation and maintenance of the development; not necessarily for washers and dryers specifically, but in order to receive reimbursement, Centennial would provide their rent roles of equipment being leased and the CRA would pay half of it from TIF and keep the balance for other developments. The CRA is using the tax generated from the project and reinvesting it in the project. It is similar to the TIF agreement with 500 Ocean. Board Member Romelus inquired what would happen when the TIF agreement ends. Mr. Simon explained it would be up to Centennial. They could reinstate the $50 a month charge. Board Member Romelus was unsure of the precedent it would set. Chair Grant understood there was a utility credit of$100 and learned there is a maximum gross rent from which they subtract the utility allowance. Centennial reduces the rent for a one bedroom by $82 due to the utility allowance, and $98 and $120 for two and three bedroom units respectively. Chair Grant favored assisting the residents of Ocean Breeze East to build wealth in the community. He wanted renters to save for a down payment on a home. Board Member Romelus inquired why not completely fund the appliances. Chair Grant agreed. The issue with a rental program is whether Centennial buys the appliances outright, charges for it and after two years, earns a profit less the maintenance and repairs. He favored the CRA purchase the first round of appliances. It could be done for five years. He requested a motion to approve paying $50 for five years for all the units. Board Member Romelus added the CRA only had to allocate $567,500 to make the project happen. She favored paying the cost to outfit all the units. Motion Board Member Romelus moved to have all 123 units outfitted with washers and dryers. Board Member McCray asked how Centennial handled washers and dryers in other developments. Centennial explained they have never constructed a project that supplied washers and dryers to 100% of the units, but other developments had 80% appliances. Board Member Penserga understood Centennial would allow the tenants to rent and not to buy. Mr. Milton explained he was present to listen to the Board, but they are more concerned with the long-term revenue for the maintenance than in the initial investment. Chair Grant hoped they would put money back into the community. Chair Grant requested a motion to have all units equipped with a washer dryer for five years and $50 a month to get the best people coming to Boynton Beach. 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 Board Member Romelus advised she made the motion. Vice Chair Katz seconded the motion. Mr. Simon explained Centennial is under no obligation to enter into an agreement for the idea as a way to assist tenants in their community. The Board came up with a way to make the project more affordable and provide additional amenities to the tenant. The discussion is what options to propose to Centennial to consider if they would agree to the Board's desire to have usual amenities found in a market-rate apartment. They are capped rental rates, so the owner cannot increase the rents. They are offering a way to assist the tenant by either paying the rental fee for a number of years, purchasing appliances outright and fitting all the units. It does not always equate to savings to the tenant. If the appliance broke, the tenant would be responsible to fix it. If outfitting all the units, the Board should determine the long-term savings to the tenant. Chair Grant pointed out the CRA may be paying for a washer and dryer in a vacant unit. The CRA would want to know the numbers indicating how many tenants used a washer and dryer. He did not know if the Board could offer a flat rate amount or offer a percentage of the TIF. Attorney Rossmell suggested the Board make an offer to discuss the possibility of TIF funding with Centennial, contingent on having a washer and dryer in each unit that is free for all of the tenants to use, and in order to receive the TIF, they need to provide annual backup as to the number of units that have a functional washer and dryer. Vice Chair Katz agreed and wanted staff to discuss the cost of putting the washers and dryers in the units and the necessary annual TIF to cover the fees the tenants otherwise would have paid with Centennial. Board Member Romelus amended her motion to the above. Mr. Milton understood the request and commented the equipment cost per unit was approximately $1,100. They do anticipate most tenants renting at $50 a month, which is part of the revenue Centennial counts on in their pro-forma, overall financial picture of the development, and to maintain the equipment. He commented Centennial is willing to talk about anything that will make sense. Chair Grant pointed out, since they are using TIF revenue, it could be a on a reimbursement basis, the CRA could lay it out, or a combination of both. Board Member Romelus amended her motion to reflect what Chair Grant suggested. Board Member Penserga did not support purchasing the appliances outright because in the future, the machines break. If he is held responsible for it and not a third party, he will have to cash out to repair. By having a rent model with maintenance, no one would be shocked when items break. Board Member Romelus agreed maintenance is pertinent because people who do not own the appliances do not always take care of them. Mr. Milton commented Centennial needed to own the appliances and maintain them. Vote Vice Chair Katz seconded the motion. The motion unanimously passed. 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 G. Consideration of an Interlocal Agreement (ILA) with the City of Boynton Beach for funding of the MLK Jr. Corridor Redevelopment Project with Centennial Management Corporation Mr. Simon explained this item was similar to Ocean Breeze. It is a mixed-use project with minimum of 124 affordable, multi-family rentals. Centennial can apply for the 9% Low Income Housing Tax Credits or the State Apartment Incentive Loan (SAIL) program. Centennial is preparing their application for the 9% and as part of that, certain forms need to be completed by the City and for the local municipality to provide a local government match, which is $625,750. The CRA will ask the City Commission to sign off on the match form and pay for the match. If Centennial is awarded, the CRA would reimburse the City for their contribution. This is to enter into an ILA with the City and the City Commission will hear the item on October 17tH Motion Board Member Romelus moved to approve. Board Member McCray seconded the motion. The motion unanimously passed. Chair Grant noted Family Dollar is next to the MLK Jr. Boulevard development. He commented that if the CRA purchased the property, it could change the outlook of Centennial's design because they could have a parking lot and a larger project. Centennial was told the CRA was considering acquisition and they can talk about it. The current application cycle deadline is November 7. (Board Member Romelus left the dais at 8:40 p.m.) They had also discussed other sites as part of the development. The Larann Group is waiting for finalization of Centennials agreement with the CRA and they will acquire their lots. Centennial is always interested in doing more. An acquisition would not impede the project. H. Consideration of a Purchase and Sale Agreement for the Property Located at 100 E. Martin Luther King Jr. Blvd fka Family Dollar Mr. Simon explained the CRA Advisory Board approved the Letter of Interest to Family Dollar to acquire the parcel not to exceed $1.2M and the CRA take ownership if they could negotiate a lease termination with Family Dollar. The letter was presented to the owner who also agreed to the terms and signed the letter of interest. Staff and Legal drafted a Purchase and Sale, including the terms in the letter of interest, which included the purchase price and the terms of closing on or before October 24th for the property corporately owned by Woodcliff Washington. 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 Chair Grant noted the 8,500 square foot retail building could be used as a grocery store on MLK or for many other uses. There was already interest from the Community Caring Center and Feeding South Florida to help end the food desert. (Board Member Romelus returned at 8:43 p.m.) David Katz, 67 Midwood Lane, commented the acquisition was a bad idea, noting the CRA spent $1.2M and $800K on the property. The property is zoned C-2 and there are a number of uses. Wanting to acquire the property to control it is a misnomer. Control of the property is obtained through the site plan and zoning. He thought there was no need to buy the property. He thought if the property sat for six months or a year, a private individual may pay $800K. The property, if it stays private property generates $41 K a year in taxes, which will come off the tax rolls. He queried what would happen if the CRA purchased the property and no one bought it. He thought it was a waste of taxpayer dollars. Tori Orr, Boynton Strong, would love to have a store immediately and acknowledged there is a food desert. District II does not have a supermarket within walking distance and all they have are restaurants and bad food stores. They like fresh produce and they cannot get fresh food. He thought the square footage of the building would be good for a food market. Victor Norfus, 225 NW 6t"Avenue, commented the CRA failed the community as Family Dollar failed the community. There are reasons why it failed with theft and some mismanagement, but it has nothing to do with the CRA buying it and managing it. He has not heard anyone say what plan the CRA has if they purchase it. He thought the CRA should work with the owners to get someone to lease the building as opposed to the CRA trying to find someone to buy or lease it. There are many other ways to fill the building with viable businesses without spending the $1.2M. The purpose was to bring a grocery store to the area to get federal funds to develop the area. There was food at the Family Dollar, but it was not a grocery store. He did not think a grocery store had to be on MLK Jr. Boulevard. Bernard Wright, Robert E. Wells Foundation, thought the CRA spent too much tax-payer money already buying a $3M Church. He reminded the Board the CRA works for the people. He did not support spending $1.2M on a building. He said he did not like that the Board would be spending $1.8M (sic) on a building, but would not spend $8K to $12K to pour three feet of concrete to complete the amphitheater that is being called a performance pavilion. He thought no one was showing concern about what the people want and need and did not want a dime spent. He said he agreed with the prior speakers David Katz and Victor Norfus. Chair Grant reviewed the history of the property. Prior to the CRA purchasing the property in 2007, it was owned by a Church that did not pay taxes. The property was appraised for $2.5 million in 2015 for the Boos Development and now the CRA has the opportunity to 18 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 buy it for half of its value. The CRA obtained the Women's Club and the CRA can make it better for the community. The CRA does not have to own the building in perpetuity, but the CRA can find a tenant and make sure it was subsidized because in the past, the CRA filled vacant spaces in new buildings. The Board can help the community by providing options for healthy food and employment. Board Member McCray thought the acquisition was a bad purchase and did not favor investing any money in it. He favored remaining the status quo. Vice Chair Katz commented the Board did purchase the Church for $3M and as a result of placing the Library there during the construction of Town Square, the CRA is saving $1 M to $1.5M in rental fees if it had to rent space elsewhere. The real cost to the Church is a savings of$1 M to $1.5M and now the property is a prime piece of property downtown adjacent to other CRA-owned property that could be redeveloped into a $50M building in the next five or so years after the Town Square. He did not vote to acquire the property initially at the last meeting because of lack of a definitive plan, that was adjacent to a redevelopment project discussed earlier, but they do not know exactly what will transpire to incorporate the property into a broader project. As such, he was apprehensive to spend the money to acquire it. Unlike the church property on Federal surrounded by prime high value redevelopment, He did not see anyone speculating on the property to purchase it from the CRA. He thought the current owner would try to lease the property. He thought the CRA would be paying top dollar because the CRA is the likely purchaser and they would have the greatest use for it, but he did not think there was a rush to buy it. Vice Chair Katz did not support purchasing the property at this time. Compared to other purchases, the Church property will be a prime piece of redevelopment and the CRA has an intended use for the property. The CRA wants to ensure there is parking for the potential rail station or whatever they can incorporate into it. He did not feel the pressure to purchase. Board Member Penserga clarified he had voted for a Letter of Intent to solve as many problems as possible. He did not want the property to be vacant or ransacked, or let someone to buy it and turn it into a run-down convenience store. He also had no intention of the CRA absorbing the $1.2M cost completely and permanently. He spoke with the Community Caring Center and Feeding South Florida, with the latter being a massive organization. Both parties want a grocery store at this site. If the CRA acquires it at this value, the intention was not to give it to a developer. It was to purchase it so it could be affordable for organizations like the Community Caring Center who want a grocery store. They have given a lot of money to the Community Caring Center in the past, and they have already allocated money to help with constructing a building. Selling to the Community Caring Center would be money the Board would not have to pay. He wants them to do so and lease it at the same value the Board would purchase it for. He noted the organizations were not present. Motion 19 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 Board Member Penserga moved to table the item until the organizations are present. Board Member McCray commented the Board decides what will go there and Board Member Penserga should not speculate it would be a run-down convenience store. As for the Community Caring Center, the CRA gave a great deal of money to them over the years. He thought the CRA did not need to fund the Community Caring Center anymore. He favored they needed to just hold the building. Board Member McCray seconded the motion. The motion unanimously passed. The item was tabled to the next meeting. 15. New Business A. Approval of Waiver and Commercial Rent Reimbursement Grant Program in the amount of$15,000 for Boca Babes OBGYN, LLC located in Marina Village at 625 Casa Loma Blvd, Suite K Mr. Simon explained there is a requirement the entity applying for the grant signs off on the grant. In this case, there is a dual entity between the owner and the physician and another entity that is a title server of the entity, which is Florida Women's Care. The title server is not investing any funds in the project and are not guaranteeing the project. They are two separate organizations. The CRA needs the signature of the guarantor, who is the physician and the property owner, who is the CRA. This only applied to the rent reimbursement and not the interior buildout that was previously approved. Motion Board Member Romelus moved to approve. Board Member Penserga seconded the motion. The motion unanimously passed. Mr. Simon explained this project completely fills all the commercial space in Marina Village. B. Approval of Waiver and Commercial Property Improvement Grant Program in the amount of $18,000 for Common Grounds Brew & Roastery, LLC located in One Boynton at 1517 S. Federal Highway. Motion Vice Chair Katz moved to approve. Mr. Simon explained this is a new business that is opening at a location which received a grant less than five years ago, which has since closed. The applicant is opening their second location. The request is to only waive the amount of time between a unit receiving a grant at a location and a different unit receiving another grant at the same location, which in this instance was less than the five years. 20 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 Board Member Romelus seconded the motion. The motion unanimously passed. C. Consideration of the Purchase and Sale Agreement for the Property located at 1001 N. Railroad Avenue Mr. Simon explained this item was negotiated over several months. The lot is on the corner of NE 9t" Avenue and N. Railroad Avenue at the eastern block of the MILK Jr. Boulevard Corridor. It is within the area of the NE 3rd Street roadway improvement as the CRA intends to make improvements to Railroad Avenue. Currently, the vacant property is adjacent to CRA owned lot, which has a single-family wooden structure on it. Staff negotiated a price with seller down to $75K. The appraised valued the property was $62K. Motion Board Member McCray moved to approve. Vice Chair Katz seconded the motion. The motion unanimously passed. D. Consideration of Broker of Record Contract for Property and Casualty Insurance with Plastridge Agency, Inc. Chair Grant presented the item. Motion Vice Chair Katz moved to approve. Board Member Romelus seconded the motion. Chair Grant noted the policy does not cover for cyber security and he asked if the Board wanted staff to look into obtaining Cybersecurity for the CRA. Mr. Simon understood the CRA was covered under City's Policy, as the CRA pays the City to manage their system. He agreed to confirm the coverage at the next meeting. The motion unanimously passed. 16. CRA Advisory Board A. CRA Advisory Board Agenda - September 5, 2019 B. CRA Advisory Board Meeting Minutes -August 1, 2019 C. Pending Assignments D. Reports on Pending Assignments 21 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 9, 2019 E. New Assignments 17. Future Agenda Items A. Consideration of Terms for the Purchase and Development Agreement with the Community Caring Center Boynton Beach, Inc. (CCC), for their property located at 145 NE 4th Avenue D. Discussion of a Joint Venture Agreement Board Member Romelus explained she would provide information about the item in November. C. 2019 FRA Annual Conference CRA Advisory Board Reports 18. Adjournment Motion Board Member Romelus moved to adjourn. Vice Chair Katz seconded the motion. The motion unanimously passed. The meeting was adjourned at 9:11 p.m. Catherine Cherry Minutes Specialist 22