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Minutes 04-04-19 MINUTES OF THE CRAADVISORY BOARD MEETING INTRACOASTAL PARK CLUBHOUSE 2240 N. FEDERAL HIGHWAY BOYNTON BEACH, FLORIDA 33435 HELD ON THURSDAY, APRIL 4, 2019, AT 6:30 P.M. PRESENT: STAFF: Linda Cross, Chair Michael Simon, CRA Executive Director Robert Pollock, Vice Chair Thuy Shutt, CRAAssistant Director Thomas Devlin Theresa Utterback, CRA Dev. Svcs. Mgr. Golene Gordon Bonnie Nicklien, Administrative Svcs. Rick Maharajh Lisa Tayar, Prototype, Inc. Anthony Barber (arrived 7:20) ABSENT: Allen Hendricks 1. Call to Order The meeting was called to order at 6:34 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 March 31, 2019 No questions. 5. Public Comment — None 6. Consent A. Approval of CRAAdvisory Board Meeting Minutes — March 7, 2019 Motion made by Mr. Maharajh, seconded by Mr. Pollock, to approve the March 7, 2019, minutes. In a voice vote, the motion passed unanimously (5-0). 7. Assignments A. Pending Assignments 1. Consideration of Equitable Economic Development Grants Meeting Minutes CRA Advisory Board Boynton Beach, Florida April 4, 2019 Chair Cross has looked over rules and regulations provided by Staff for both the grants and does not see where the questions could be asked; what is the impetus for the question: is there fairness in racial diversity, ethnicity, and economic diversity? Mr. Simon confirmed, and stated in Palm Beach County there are protected classes with fair housing, but this is not housing and those regulations do not apply to a grant. A neutral indicator or review is sought for an individual applying for a grant for a commercial enterprise (build-out and rent). The only criteria of concern is financial or business-related matter and not of any ethnicity, gender, marital or familial status. Anyone can qualify, rather like a bank loan. Seeking to provide free financial assistance to a business, consideration of credit score and previous business history is needed to provide a level of creditworthiness. Chair Cross noted, looking over the last three years, there are very few who have received the grants that are not still in business. Mr. Simon said the private to public funding ratio is "off the chart," and Chair Cross noted more money is being spent in construction. Ms. Gordon wondered about the role of a business plan; Mr. Simon said that is of less concern than the credit score. The business or marketing plans are not judged, though it is part of the application. There is no point system. Mr. Devlin asked how an applicant is treated who has no prior experience owning a business but has a good credit rating. Mr. Simon said the application requires two years of personal tax returns, excellent credit, no red flags regarding bankruptcies, and a lease. All monies are reimbursable. The applicant has to show what has been spent before receiving a grant. Mr. Simon explained what happens if the new business closes after six months, including that the space may have been improved to benefit the overall community even though grant funds were lost. It was clarified that the criteria for the grant is not based on the number of employees to be brought in; these numbers are tracked to report on the benefit of jobs created. Some discussion followed on subletting (as in a hair salon) and consideration for businesses such as an art store/gallery; the money goes to the leaseholder, subletting would be leasing the entire square footage space to another entity, and not a deterrent to the grant. Chair Cross noted that in the statistics for the prior three years, there is nothing in them that denotes gender, ethnicity, race, and so on. Mr. Simon said there have been no reports or complaints that the City's grants are not equitable; but that it is always good to re-evaluate grant programs. It is believed that the City has a diverse array of business types and individuals; again, to Mr. Simon's knowledge, there have been no complaints in the past ten-plus years. A discussion ensued on the differences between the different tiers, essentially it is due to the amount of assistance in a commercial improvement grant being higher than rental 2 Meeting Minutes CRA Advisory Board Boynton Beach, Florida April 4, 2019 grants. The two types of grants (tiers) were examined, compared, and discussed. Ms. Nicklien explained the investment for conditional improvements stays with the space; technically, the businesses eligible on rent are not really businesses that are top priority for the CRA. Improvement of the facade and interior space would stay with the building. Mr. Devlin confirmed that the grant is to improve the facade and is not the actual nature of the business. Ms. Gordon wondered what happens when someone misses the deadline for applications, if it can be reconsidered. Mr. Simon said there is no deadline, the funding is first come, first serve. When an application is complete and verified, then it is sent to the Board. It could take a year or the applicant could get it on first try. Mr. Devlin stated that given the diversity of what has already been approved and reading through the materials, nothing could be discerned that is obviously unfair or should be changed. Chair Cross suggested making a motion to recommend that the grant criteria remain the same. Mr. Simon recommended that the language reflect the assignment phraseology. Motion made by Mr. Devlin, seconded by Mr. Maharajh, to recommend that the language has been found to be equitable and moves that it be reported or recommended to the asking party. In a voice vote, the motion passed unanimously (5-0). [Anthony Barber arrived 7:20 p.m.) B. Reports on Pending Assignments 1. None C. New Assignments 1. None 8. CRA Board Items for CRAAdvisory Board Review and Recommendations A. Old Business 1. Discussion and Consideration of the CRA's MILK Jr. Blvd Project Conceptual Development Terms Chair Cross stated this item was begun at the March meeting and that there will be two more public meetings. The applicant, Centennial Management, was present to answer questions. It was noted that comment cards are available for those who may not wish to speak publicly. Brian Jaffe and Paul Bilton, Centennial Management, stated that the project, site plans, and concepts have not been finalized and public comments are encouraged. A brief overview was given via PowerPoint of the conceptual street view, floor plans, financing structure, rents, amenities, and future phases. 3 Meeting Minutes CRA Advisory Board Boynton Beach, Florida April 4, 2019 Chair Cross was glad to see the commercial space has been increased. Mr. Pollock had questions about the rental criteria, if credit check will be part of the application. Mr. Bilton noted income is dictated by the State criteria in addition to Centennial's own criteria, applied equally to everyone, which has to do with verifying rental history, credit, and background checks. Mr. Simon rephrased Mr. Pollock's question as to concerns that individuals of lower incomes with credit problems, is there a threshold for disqualification? Mr. Bilton said these criteria can be discussed; however, care must be given to guidelines that are set and applicable to everyone. The base credit score is believed to be 600 and, once established, needs to be applied equally for everyone. The rent is based on the number of bedrooms and income is based on the number of occupants per the schedule given. Ms. Gordon hypothetically asked if a young man who has just graduated high school and has started a job to satisfy income requirements but has not established credit, would be qualified. Mr. Bilton did not have the answer, but should definitely be considered (no credit versus bad credit). Mr. Simon asked for Centennial's history of their other complexes, if there is trouble filling complexes due to too high of a credit score and there are still empty units, or is that not a hindrance. Mr. Jaffe said there are currently 3,500 units, of those 3,000 are affordable, and there is less than 1% vacancy. Mr. Pollock had a question as to the criteria based on income and only one is working. Mr. Bilton said the income is based on household size and income; it does not matter how many work. The floor was opened to public comments: • Dr. Stephanie Hayden-Adeyemo, 2181 West Woolbright Road, had several comments/questions: o Where are the 3,500 units mentioned above located? Mr. Bilton said they are located from Homestead (Miami-Dade) to Davie (Broward), and some non-income restricted units are in Pompano Beach. Income restrictions in Palm Beach County are different from those in Broward and Miami-Dade, and will be followed for Palm Beach County. o When is ground being broken? Mr. Jaffe say the project is still in the early stages, funding has not yet been secured, and there is no information available yet as to a start date. o There isn't an agreement, there isn't a start date, there isn't funding, yet the meetings are ongoing over three years. Shouldn't Centennial have already have some idea about 4 Meeting Minutes CRA Advisory Board Boynton Beach, Florida April 4, 2019 renting to people with no credit history. There should be some kind of work-up for this area with numbers already crunched. Mr. Jaffe said the Commission Board wanted these meetings, and due to the early stage, no information is available as yet. Chair Cross clarified that even though there are several different public financing options, people are trying to understand how this will work. Centennial has to apply for funding options, the applications go in over the summer and fall, and answers won't be available until the end of the year, and then will be able to determine the financial criteria. These designs are conceptual. • Patrick [unintelligible] and Vic Galluzo [phonetic], acquired new units for a total of 350 units on MILK Blvd. They have started to renovate and upgrade (and would like to get a grant, if possible). Mention was made of the criminal activity in the corridor and the difficulty leasing properties. It was asked that the Board act immediately to get a police presence and clean the area out. The project would be a good addition, good luck to the developers in this area, but stressed that support from the community is badly needed. • Susan Oyer, 140 SE 27th Way, had several points to make: o Would like to see a grocery store, because the area is a food desert. o Height issues with 3-4 stories right across the street from 1-2 story homes. o Code requires 2.5 acres of green space for every 10,000 people; though not that many people, where is the green space? o There should be trees surrounding and in the middle of every parking lot. o Roofs should be white (which is becoming City trend). o Art features are required in every new project. o Objects to the proposed colors, should be pastels. Chair Cross did affirm that this is supposed to be a green project. • Brian Fitzpatrick, 409 NE 1St Street, is excited with the current Commission, and is asking the Board to support the project. Would like to not lose the current momentum and the details can be worked out down the road. This project is needed for tax income to help City fund affordable housing in other areas. • Bernard Hillian [phonetic], 403 NE 11th Ave, likes the area better now that it is being developed; but more police is needed for safety from drugs, guns, just so residents can walk on the streets. Supports the project. • Trinetta Rutherford, 1100 NW 1St Street, had questions about criminal history criteria, how far in the past must criminal history be to qualify to live in this development. Mr. Bilton said that has not been determined yet, but it would have to be applied equally. It will have to be fairly strict requirements to protect all the residents. Ms. Rutherford said, from her 5 Meeting Minutes CRA Advisory Board Boynton Beach, Florida April 4, 2019 personal experience, more police are not needed, as it will only cause harassment of law-abiding citizens; this is not a viable solution. • Doris Jones, 207-205 NE 9t" Ave, as a landlord, had a question about Housing Authority, would vouchers be accepted to residents can continue to live in the area. Mr. Bilton said Section 8 vouchers are accepted, subject to all the other requirements that everyone else has to meet. Ms. Jones asked how many units would be put aside for the use of vouchers and would they be in a restricted area as opposed to dispersed through the development. Mr. Jaffe said this would depend on the financing options that would dictate how many units and Mr. Bilton said there will not be any separation of residents by income. Mr. Simon clarified that all of the units will be affordable housing, none will be outside the affordable workforce criteria. Some discussion followed on the 124 units and that the City does not want to see another Boynton Terrace and is relying on Centennial's reputation for the project to be successful. There will be no less criteria for design, trees, parking, or windows compared to upscale developments in other areas. Ms. Jones asked about how the property will be acquired; Mr. Simon explained by referencing the site map, the CRA owns almost all the property the project will be built on and the property needed is available. CRA owns enough land to make the project work, regardless of neighbors who don't want to sell. The floor was closed to public comments. Chair Cross noted that a flyer went out announcing three more meetings: ■ April 9 at the CRA Board Meeting ■ April 25 at Hester Community Center ■ April 29 at Carolyn Sims Center There were several different notifications, a community input flyer, a utility bill insert, door hangers, and word of mouth was encouraged. B. New Business 1. None 9. Future Agenda Items - None 10. Adjournment Upon motion duly made and seconded, the meeting was adjourned at 7:46 p.m. Attachments: Power Point Centennial Management Corp./MLK Jr. Blvd. Concept [Minutes transcribed by M. Moore, Prototype, Inc.] 6