Loading...
Minutes 03-07-19 MINUTES OF THE CRAADVISORY BOARD MEETING INTRACOASTAL PARK CLUBHOUSE 2240 N. FEDERAL HIGHWAY BOYNTON BEACH, FLORIDA 33435 HELD ON THURSDAY, MARCH 7, 2019, AT 6:30 P.M. PRESENT: STAFF: Linda Cross, Chair Michael Simon, CRA Executive Director Robert Pollock, Vice Chair Thuy Shutt, CRAAssistant Director Anthony Barber Theresa Utterback, CRA Dev. Svcs. Mgr. Allen Hendricks Lisa Tayar, Prototype, Inc. Rick Maharajh Thomas Devlin ABSENT: Golene Gordon 1. Call to Order The meeting was called to order at 6:35 p.m. 2. Roll Call Roll was called, and it was determined a quorum was present. 3. Agenda Approval A. Additions, Deletions, Corrections to the Agenda — None B. Adoption of Agenda Upon motion duly made and seconded, the Agenda was unanimously approved. 4. Information Only A. Financial Report Period Ending February 28, 2019 No questions. 5. Public Comment — None 6. Consent A. Approval of CRAAdvisory Board Meeting Minutes — February 7, 2019 Motion made by Mr. Barber, seconded by Mr. Pollock, to approve the February 7, 2019, minutes. In a voice vote, the motion passed unanimously (6-0). 7. Assignments A. Pending Assignments Meeting Minutes CRA Advisory Board Boynton Beach, Florida March 7, 2019 1. None B. Reports on Pending Assignments 1. None C. New Assignments 1. Discussion and Consideration of the CRA's MLK Jr Blvd Project Conceptual Development Terms Mr. Simon reported on the February 12, 2019, CRA Board meeting; the presentation from Centennial Management Corp was heard. The CRA Board voted not to move forward, but wants the CRAAB to listen to the presentation from Centennial Management for the RFP, which is a conceptual project. CRAAB needs to determine recommendations: • Listen to various financing options available; • Income eligibility for funds; connect dots between funding source and targeted income; • Comment on overall site plan and components. The goal is to try to find out how CRAAB and the public feel about this project. Instructions for initial public comment and beginning of Board recommendations were given. Brian Jaffey, Centennial Management, gave a Power Point presentation (see attached) on the conceptual site plan. Chair Cross asked about the timeline on the financing structure on the 9% and SAIL. The timeline is late October/early November, but site control must be set by that time to apply for both. Ocean Breeze East could possibly impact this development; due to local government contribution, proximity will not affect the 9%, however, it could affect the SAIL. To apply for SAIL, it would have to be an elderly demographic or Workforce; the difference between the two was discussed as there are two options for income under SAIL which provide a different target range. Workforce was under contract, but with the postponements, the contract expired and must be renegotiated so exact amounts are not currently known. Elizabeth Roque, Centennial Management, continued the discussion on the income/rent ratios, income limits, and utility allowances. Mr. Barber wondered about previous meetings when it was discussed contributing x-amount of dollars for one full parcel; Mr. Simon said there is funding available in the project either for acquisition or construction. The cost of Bell's property is prohibitive to the project and will not be part of the project. Mr. Pollock asked about single family homes. Ms. Roque explained this is an affordable housing community, rental property only. Another phase is being explored for townhouses and first time buyers. Mr. Simon 2 Meeting Minutes CRA Advisory Board Boynton Beach, Florida March 7, 2019 explained that the plan for the corridor, Seacrest to Railroad Ave, will be commercial/mixed use on each end with multi-family (townhouse, duplex, rental, apartments) in between. Cottage District and Ocean Breeze West may be 30-34 houses. Two types of development to be discussed will offer both single-family and rentals. Ms. Roque added that once the tenants are into the community, they can stay while their incomes increase which will give ability to eventually purchase within the expanded community. The floor was opened to public comments: • Dr. Stephanie Hayden-Adeyemo, SW 15th Ave, asked about income and demographics and applying for the 9% credit for SAIL, and could a majority of townhomes be considered as the majority of the land use; also, what about parking? Mr. Simon restated the questions as: o Can the project be townhomes; o Who is the demographic; while there is a percentage of income attached to every household, affordable housing is the goal of this project, whether 30% of median income up to 120%, all is considered affordable/workforce housing. o As to parking, the City has a calculation of parking spaces per unit that all projects have to meet. Dr. Hayden-Adeyemo continued that single family homes would be a better use than creation of parking lots. This is a lot of density; would have more flow if single-family homes. • Brenda Williams, 337 NE 24th Ave, is concerned there has not been adequate input on the development. No one on Board represents the kind of people they're trying to attract; also, parking is inadequate. • Rev. Bernard Wright, 713 NW 2nd St, as a community advocate, wanted to voice encouragement to continue to move forward. • Willie Akins, 726 NE 1 st St, president of Heart of Boynton Neighborhood Association, concerned that pricing is not cost-effective and the need to look at the demographics. Chair Cross explained the scale of income and how it is calculated to live in such an affordable housing community. • Tory Orr, 407 NE 17th Ave, #101, represents Boynton Strong, concerned about very low income and cannot get approval for this development. Again, the calculations were explained. The community kids center was commended. Also suggested in the corridor were the addition of an urgent care clinic, a farmer's market, and a grocery store. • Susan Oyer, 140 SE 27th Way, wondered if there could be more handicap parking if the demographics will include seniors. Mr. Simon noted that there will be less parking needs for seniors. The floor was closed to public comments. 3 Meeting Minutes CRA Advisory Board Boynton Beach, Florida March 7, 2019 Mr. Barber felt the project can be better in that a parking garage would be helpful, but that changes everything. Also, he wondered how close they are to getting the piece of property that separates the two properties. Louis Swezy, president Centennial Management, said just the land total would come out to $200,000 per unit. Ms. Roque stated whether or not those particular pieces are purchased at a fair price, this community is still moving forward. A discussion on the parking issue ensued; it was noted that parking garages cost about $25,000 per space. Mr. Devlin wondered about canopy covers for the parking and covered paths to the building. Ms. Roque commented the existing projects seem to have sufficient uncovered parking with no complaints. Mr. Simon added the possibility of canopy trees for natural shade. Chair Cross discussed financing options, if the project money is available for Option#1. Mr. Simon said there is $2.4 million set aside for the corridor and future projects; at least $1.2 million for matching funds for the low income tax credit program and SAIL program. If spent this year, it was unknown if the $873,000 is needed by October, but next year would there would be $30,000480,000 left. Mr. Simon went through year-by-year potential expenditures, noting it is financially doable though other projects would be limited. The three options were discussed. Motion made by Mr. Devlin, seconded by Mr. Barber, to recommend Options 2 and 3 using Workforce for Number 3; Option 2 is preferred, fall back is Option 3, revising in the future. In a voice vote, the motion passed unanimously (6-0). Mr. Simon clarified with Chair Cross to wait one cycle and see where it goes next year. 2. Discussion and Consideration of the CRA's Cottage District Infill Housing Project Conceptual Development Terms. Mr. Simon stated the CRA wants recommendations from the Board and public for single-family housing on CRA's Cottage District site. The CRA has selected Neighborhood Renaissance, Inc. to negotiate the plan and proposal. A Power Point was provided, the project is for full-style architecture, old-Florida cottages; home ownership; 28-34 units. Site plan is not approved or finalized. Concerns related to choosing site plan options, financial impact, potential development terms. No agreement is currently in place. Michael Pecar, Director of Real Estate Development, Neighborhood Renaissance, gave a Power Point presentation (see attached) including the history of the company and projects completed. 4 Meeting Minutes CRA Advisory Board Boynton Beach, Florida March 7, 2019 ➢ Plan A: Project will be single-family homes; priced $260,000 to $270,000, 1,300-1700 square feet, three-four bedrooms, one car garages; sustainable, energy efficient, certified green building standards; walkable, near new Town Center; public benefits; within transit oriented district; $10M increase in tax base; hire local subcontractors to employee locals through job fairs; outreach programs; streetscapes with sidewalks; 0.2 acre pocket park open to public, landscaping and benches, parallel parking spaces; interior street to building more homes on interior lots. ➢ Plan B: Concept of a larger greenspace, eliminate public park; have a cut through street from 4t" to 5t"; eliminates amount of street parking; all will have garages facing 5t"; three homes with Seacrest access. Both plans will have a proposed mix of elevations; there will be a pre-sale so owners can pick the model wanted; 120% of AMI affordable. Further descriptions of the proposed site, development features and schedules were given. The CRA would be contributing $1,120,000 worth of land with an estimated $2,000,000 contribution from CRA/City/Utilities. Chair Cross had questions about construction costs, confirming the overall total is $11 million, including the $3,177,000 CRA contribution. Mr. Pecar stated the market is currently $325,000 and up; they are trying to price these homes at $260,000. Mr. Simon added that the value of the land is included in the $3 million, the buyer subsidy is the CRA money, which keeps the pricing low and units affordable. CRA can provide a future spreadsheet showing how the numbers work, the income range should be sufficient to purchase the home in between the mortgage and purchase price. Discussion ensued on financing particulars and eligible buyers. As to resale, the ones with subsidies will depend on the program, and would have to sell to someone in the same AMI. The goal is to not sell to investors and will include deed restriction for owner occupancy. Mr. Devlin wondered if the CRA will get back the subsidy when the home is paid off; Mr. Pecar said this can be structured a number of different ways. Terri Murray, Executive Director, Neighborhood Renaissance, explained it is the community's choice what price points to be subsidized because project costs go up to the City if they put up the down payment assistance; if not, additional resources can be brought to buyer over and above what it takes to build the units. Chair Cross said if CRA puts in the land plus another $2 million, flipping a house is not an option; but if selling to someone in the same AMI, the subsidy should continue to roll over. If not, the CRA should get the subsidy back. Mr. Simon commented there would be restrictions that will keep the houses affordable as long as possible; and the details will be worked out. There will be no rentals, per 5 Meeting Minutes CRA Advisory Board Boynton Beach, Florida March 7, 2019 the RFP. AMI, assistance numbers, and methods to keep the housing affordable were further discussed. Regarding the design elements, Mr. Devlin originally liked Plan B as Plan A does not have a secure backyard, but after discussion favored Plan A. Discussed was parking, the creation of a two-way alley, and "real loading" of the lots to maintain the old cottage feel. It was noted that Plan A is the most direct response to RFP requirements; but that garbage/trash pickup is an issue to keep in mind. Discussion ensued on road design and access. The floor was opened to public comments: • Susan Oyer, 140 SE 27th Way, stated her family owns property near the site with historic houses three sites; concern is to keep people from going onto their property. Suggested adding trees to keep people from driving through the property; and her family favors Plan A as organic and beautiful. One question re: middle park area, is it meant to have open space for children to play, or to be like other park providing shade and a few playground pieces. Mr. Pecar said it is a passive green space, most likely will be dry retention, accessible, but no other improvements. Ms. Oyer further said this development would be the crown jewel of the neighborhood; would prefer to see 80%AMI and up which will allow people to afford maintaining the homes and raise property values. The Board was encouraged to accept Plan A. • Brenda Williams, 337 NE 24th Ave, confirmed the square footage of the houses to be 1,300-1,700. Also, asked about second mortgages; the concept of a silent mortgage was explained, that it has no repayment. Ms. Williams didn't like the one-car garages, which forces parking on the street for second car which narrows the street. • Alexandria Wilson, 2861 S Seacrest Blvd, would also like to see two- car garages, but likes Plan B because it more usable. Also, could the Board look into more affordable townhomes, something less costly for first-time buyers. • Mark Karageorge, 2408 Main Blvd, appreciated Neighborhood Renaissance's efforts and feels Plan A makes the most sense as it is affordable home ownership and geared to workforce pushed out of other markets. The floor was closed to public comments. In preparing for a motion, a discussion of two car/tandem garages and how this concept could result in fewer units being built ensued; perhaps a two car driveway with a one-car garage could be considered wherever possible, which could eliminate parking on the street. It was noted that Code requires that each house has parking for two cars minimum. 6 Meeting Minutes CRA Advisory Board Boynton Beach, Florida March 7, 2019 Motion made by Mr. Barber, seconded by Mr. Devlin, to recommend to CRA Board for Plan A, with funding proceeding as presented. In a voice vote, the motion passed unanimously (6-0). 3. Consideration of Equitable Economic Development Grants Mr. Simon introduced the consideration of research of economic and racial equity in the commercial grant programs to determine if these meet the intended goals of the Agency. CRAAB is to give recommendations on to improve the programs as they are or if they are okay as they are. This item is not expected to be resolved in one meeting. While unsure of the origin of this request, it is possible the CRA Board Chair felt certain things about the grants don't track and show racial and economic equity. Already being tracked are: ➢ Name of the business ➢ Amount of the grant ➢ Rent reimbursement ➢ Property improvement ➢ Location based on address Requested for consideration is: ➢ Three years of the above statistics ➢ Type of business ➢ Dollar amount the business provided and the amount CRA has provided Mr. Simon noted the applicant information is kept when an application is complete; so far no one who has completed an application has been denials. CRAAB could consider how low a credit score is acceptable to receive a grant of a particular size. A score of 601 was chosen as to industry standards and other types of lending. Discussion followed on credit score criteria followed; Ms. Utterback noted that walk-ins are frequent, Staff goes through all criteria with interested parties, and many never follow through. Mark Karageorge, former CRA Board Member, stated a lot of time has been spent on this program; guidelines have been tweaked, analyzed, studied, with the resulting criteria being risk-adverse for the Agency. Recommends not playing with the credit numbers. As to discrimination, it was written based on business principals and nothing else to be fair and equitable to all. The Agency is inclusive and does not discriminate in any way, shape or form, whether it's the City or the CRA. This program works and should be kept the way it is. This program is an incentive, not a handout, it is a handshake. 7 Meeting Minutes CRA Advisory Board Boynton Beach, Florida March 7, 2019 Chair Cross directed Mr. Simon to get the requested information for the next meeting. 8. CRA Board Items for CRAAdvisory Board Review and Recommendations A. Old Business 1. None B. New Business 1. Discussion and Consideration of the Purchase for the Property Located at 1101 N. Federal Highway Mr. Simon described this item as going before the next CRA Board meeting. The property appraised at $116,000 and owner has lowered expectation to $140,000. The CRA owns the property across the street. The building cannot be kept and has been vacant for many years. The site is in the CRA plan; it could possibly be some sort of gateway feature into the MLK corridor; pedestrian access could be added as there is no sidewalk. Acquiring the blighted property and developing it could provide enhancements to the business corridor, helping properties to the west and Federal Highway appear to be in much better condition. Staff recommends approval. The City is working on outstanding liens and is discussing waiving the running lien of many years and only charge the CRA the administrative costs of approximately $2,500 and pending liens of $1,600, or approximately $3,000 of additional costs on top of the $140,000. Chair Cross raised the question of foreclosure and a discussion followed on why many cities avoid foreclosures, the due process of service of notices, and legal complications; for answers to such questions, this needs to be brought directly to the Commission. Ms. Utterback reported on the negotiations for the property and the reduction of the liens. Motion made by Mr. Barber, seconded by Mr. Maharajh, to recommend that the property be purchased with appraised value of$116,000 with a 5% increase considering the liens, demolition, and the daily increase of lien. In a voice vote, the motion passed unanimously (6-0). 9. Future Agenda Items - None 10. Adjournment Upon motion duly made and seconded, the meeting was adjourned at 9:22 p.m. Attachments: Power Point Centennial Management Corp./MLK Jr. Blvd. Concept Power Point Neighborhood Renaissance/Cottage District [Minutes transcribed by M. Moore, Prototype, Inc.] 8