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Minutes 12-10-19 Minutes of the Community Redevelopment Agency Board Meeting held on Tuesday, December 10, 2019, at 6:30 p.m., at Intracoastal Park Clubhouse, 2240 N. Federal Highway, Boynton Beach, Florida Present: Steven Grant, Chair Mike Simon, Executive Director Justin Katz, Vice Chair Thuy Shutt, Assistant Director Mack McCray, Board Member Tara Duhy, Board Counsel Christina Romelus, Board Member Ty Penserga, Board Member 1. Call to Order Chair Grant called the meeting to order at 6:31 p.m. 2. Invocation Board Member McCray gave the invocation. 3. Roll Call A quorum was present 4. Agenda Approval A. Additions, Deletions, Corrections to the Agenda Chair Grant move item 15E to after Public Comments. B. Adoption of Agenda Motion Board Member McCray moved to approve as amended. Board Member Penserga seconded the motion. The motion unanimously passed. 5. Legal None. Attorney Duhy wished all a Happy Holiday. 6. Informational Items and Disclosures by Board Members and CRA Staff: Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 10, 2019 A. Disclosure of Conflicts, Contacts, and Relationships for Items Presented to the CRA Board on Agenda Vice Chair Katz, and Board Members Romelus and McCray had no disclosures, but wished all a happy holiday. Board Member Romelus thanked staff for a great job on the holiday parade. Board Member Penserga spoke to the Community Caring Board Members, Nancy Flynn, Doreen Robinson, Sheri Johnson, and Michael Weiner regarding 209 and 217 N Seacrest Boulevard. Chair Grant spoke with Tom Warnke about the Florida Surfing Museum and Mike Weiner, but did not discuss the two buildings. He wished all a Happy Holiday and New Year. 7. Announcements and Awards A. Holiday Parade and Light Up the Park Event Recap Mercedes Coppin, Business Promotions and Events Manager, announced the above event took place Saturday, December 7t" in downtown Boynton Beach and it had an incredible turnout and great weather. Staff worked with three CRA District businesses: Guaca Go, That's Amore, and Driftwood during the event. Feedback from all the event vendors who sold food during was positive. The vendors were very happy with their sales and the additional business exposure. Staff collected feedback surveys from the event goers, which revealed 71% were Boynton Beach residents; 21% were from Palm Beach County; and 8% came from either outside of the county or state. One question surveyed was if the event goers planned to patronize local businesses after the event and learned 49% planned to visit a restaurant, 23% planned to visit a store, 17% planned to visit a bar and 11% identified "Other" as a place they would visit. Board Member McCray commented it was nice the Cub Scouts were in the parade. B. 48th Annual Boynton Beach and Delray Beach Holiday Boat Parade on Friday, December 13, 2019 at 6:30 p.m. Ms. Coppin announced the event at Boynton marina, noted they have 32 captains registered for the event. The Boat Parade starts at 6 p.m. from the Palm Beach Yacht Club just north of Gateway Boulevard and travels south to the C-15 Canal in Delray Beach, just south of Linton Avenue. There are several viewing areas including the Boynton Harbor Marina, and Intracoastal and Jaycee Parks. The Boynton Harbor Marina will have music, kids' activities and a visit from Santa. Two Georges will have an outside bar for drinks and light bites. Event goers are encouraged to bring toys to donate to Toys for Tots and a flashlight, so event goers can signal they have a toy to donate. Last year, about 35 Captains registered and 31 showed up. 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 10, 2019 8. Information Only A. Public Relations Articles Associated with the BBCRA B. CRA Advisory Board Update 9. Public Comments Susan Oyer, 140 SE 27th Way, mentioned how beautiful the Christmas trees were. She declared they are stunning. The only critique made last year, was more color was needed and since added, the trees are exquisite, setting the City apart from other cities. She asked Board Member Romelus to judge her neighborhood Holiday Light Contest in this year and she agreed. No one else coming forward, Public Comments was closed. E. Consideration and Discussion of the Letter of Intent Submitted by the Surfing Florida Museum for the Event Management of the Historic Woman's Club of Boynton Beach - Revised Mr. Simon explained at the last meeting, the topic of management of the Historic Woman's Club, owned by the CRA, arose and a Request for Proposal (RFPs) or some other mechanism to solicit interest in the management of the building. The Board requested staff research other cities that have similar buildings and their RFPs and bring back the item. On December 5th the CRA received a Letter of Intent for the Historic Woman's Club submitted by the Surfing Florida Museum. At the last meeting, they mentioned they have an 18-member Board of Trustees and have overseen management of over 70 events. The letter from Florida Surfing Museum and other pertinent information were included as attachments. Tom Warnke, Florida Surfing Museum, had a short PowerPoint starting with a visual walk-through of their current facility. There were presentation documents, which included different options the Board could consider at the end of the presentation. At last months' meeting he had short notice to put things together to express their intent to be part of the Women's Club and not manage the building. The next morning, there was activity and discussions the Trustees and with the Historical Society in Delray Beach and they are convinced they can manage the building. The Museum has held dozens of events over the last five years and they want to manage the event space. They do not have a concrete proposal at this time. If the CRA issues an RFP, they would like to work out some common ground. They have no profit motive and support historic preservation. The members viewed the presentation. He had critical considerations he hoped would be in the RFP, such as things like local community support, having some type of a historical exhibit, and five copies for the Board. Mr. Warnke noted the Letter of Intent 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 10, 2019 had an error, which was 17 million Florida each year. He explained 117 million people visit Florida and 70% visit a museum. They feel their pricing should be decided in concert with the City's Recreation and Park Department and the CRA. He thought it should be tiered having different pricing for non-profit and for-profit organizations. They get the best quality waves on the East Coast. There is a recently completed management plan that is 89 pages and the Museum's financials for the first eight months of this year and all of last year. Event income was $18K last year, and their expenses were $1,700. They have many partners that help and provide pro Bono services as well as great volunteers. He had letters of support and advised he had informed museum supporters would come up around 7:30 p.m. Mr. Warnke explained Nancy Santiago handles all the museum's social media and did so for Sub Culture for some time and is associated with the downtown West Palm Beach merchants. She is also on the Events Team. Ms. Santiago explained their 2020 vision for sustainability encompasses all of South Florida. Boynton Beach has a rich history in terms of the ocean and environmental sustainability and they would like to collaborate with the City's internal marketing schedule, environmental initiatives and sustainability projects, so they can plug in and get the public involved in different beach clean ups going on. They are a hub for like-minded organizations who are ocean focused and sustainability minded. Barbara Ready, First Vice President, Boynton Beach Historical Society, explained the Historical Society would support and assist the museum. The Historical Society never had a home, so they never had a place to put their artifacts they have and the City has had custody of them for the 50 years they are in existence. There are artifacts they would like to see displayed. She thought it was a good idea. Chris Simon, 222 W. Avenue, Boynton Beach, speaking as a citizen and museum volunteer, commented the museum is an interesting concept and a unique type of tie in with the history of the florida surfing environment and the historic building. It ties in with the Women's Club and the Historical Society of Boynton Beach. The organization is a unique entity unlike other event management companies. The museum has a unique presence being open seven days a week and available to tourists, youth organizations, citizens, and others providing them with a location to hold programs and educational events, as well as being able to provide event management support. The City is in a unique time to seek out or investigate opportunities for redevelopment. With the downtown redevelopment occurring, they can reshape the downtown and the integration of unique entities, such as the museum, should spark interest in the area. The museum has been in existence for years, but has been in three different locations Thee have been instances where some people planned to attend an event and showed up at the museum's prior location. Having a long-term lease or home would be a benefit to the museum and could provide them with a location, and become a destination. Board Member McCray inquired how long the Museum spent at each of the three locations. Mr. Warnke explained they were at the Delray Beach Historical Society for 18 months. They moved to Lake Park for a year, and they are in West Palm Beach for 14 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 10, 2019 months. Board Member McCray asked why the CRA did not select the Museum for the Lake Park location for the one year and learned they were selected, but they did not follow the proper procedure and would have to start the process all over, but their existing lease was up so they had to find another location quickly. Board Member McCray asked how much the CRA invested in the Woman's Club and learned they invested $552,208. Board Member McCray asked if the CRA would consider other RFPs. Mr. Simon advised that was a Board decision. Staff could issue a formal RFP process to search for management of the building. Attorney Duhy noted there were changes made to CRA statutes and they now have different procurement processes to follow. She recommended, if seeking management services, issue a formal RFP for management services, and the Museum could submit a response. Board Member McCray and Vice Chair Katz supported issuing an RFP. Vice Chair Katz also reviewed the organization and background, noting it is a unique, one-of-a-kind endeavor. He viewed it, if the Board supported relocating the museum, and the worst- case scenario occurred, they do not have to renew the lease. He would be excited to see the 365 plan and availing the site to other people who might want to use the space. This museum would not be found in any other city. Board Member Romelus agreed and queried what events the museum hosted to earn $17,937 in event income. Mr. Warnke responded they held 16 to 18 events. They have birthday parties, sometimes they do a movie night and charge admission. Sometimes they have acoustic music, but have 10 different type of events and a gift shop that provides over 40% of the event income. They always had gift shop except for the Delray Beach, and he thought a gift shop may not be appropriate in the Woman's Club. Board Member Romelus inquired about community partnerships, and asked if they were they were in-kind. Surfrider Foundation events often give a free museum membership. Presently, they are in the middle of an environmental movie series for West Palm Beach. The series is free for the City of West Palm Beach. The City handles the event outreach and they show a different movie every month. They are good neighbors and the same events would continue at the Woman's Club if selected. Chair Grant thanked Mr. Warnke, commenting this is one of two nationally registered historic buildings in the city with the other building being the Schoolhouse Children's Museum. If the Board knows the building is not going anywhere, they can plan for the future having a Museum for the long-term. The Schoolhouse Children's Museum has events. Having a Surfing Museum would give the building a 365-day purpose, rather than just on the weekends and evenings. The Board, with the RFP, has to see what they can do with the building, due to its location and the parking. The Senior Center parking lot is across the street, but is used during the day during the week, so they may need to have different hours if the first floor of the building will be used as a museum. 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 10, 2019 Mr. Simon, explained when contemplating the RFP for management services, and if the Board wants a dual purpose of the building's management, responses can include these connections and functions, the RFP could be written in a way that would attract someone to manage a building for event rentals and dual uses. Attorney Duhy clarified, given the statute changes, there may need to be some partnerships and discussions with the City to ensure authority is shared for what the two entities want for the space. The board could discuss it in January. The ability to do some of the things permitted in the past, are no longer permitted, so there may need to be some things done by the City and some things done by the CRA. It could be modeled similarly to the Schoolhouse Children's Museum. Mr. Warnke had a copy of the RFP from Lake Park he could forward. The Board will discuss the RFP next month. 10. CRA Projects in Process A. The 8th Annual Boynton Beach Haunted Pirate Fest and Mermaid Splash Recap Ms. Coppin explained staff prepared a PowerPoint to cover the Haunted Pirate Fest and Mermaid Splash event about the economic impacts it had on the local economy. Azim Hussein, Marketing Events and Business Development Assistant, explained there were 13 participating businesses in the event, which were included in the PowerPoint presentation. Staff surveys the participating businesses and ten of them responded. The averages sales for the two days was about $900 and several of them indicated they received leads for future business ventures. Forty percent of the businesses that participated did so to increase exposure; 60% were there to increase sales; 100% said they achieved their goals for the event; and 100% would participate in future events and would recommend future participation to other business. Tracy Smith-Coffey, Marketing and Business Development Specialist, reviewed the marketing for the Treasure Hunt at the event. Staff produced a Treasure Hunt book requiring attendees to go to each business, and receive an answer to a question in the book. This year, staff used a Tales from the Sea theme. Renee Roberts, Social Media Specialist, explained based on the success of the CRA's Social Media Kits during last year's Rock the Plaza events, staff continued the kits for all CRA events. Social media kits for local business event vendors contained three customized graphics and a guide for how to use the graphics. The CRA shared the information through all of their platforms, which included Facebook, Twitter, Instagram and a customized blog post that included the vendors. Staff had aired Pirate's TV (PTV) live to go off of PTV pre-recorded ads and visited with live actors and helped to advertise the businesses in the event through live action videos. There were 11 PTV total videos and over 20K people reached through the videos. Approximately 1,700 people engaged with the videos and did something with the post. One business reported $1,000 in sales came directly from the video. 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 10, 2019 Ms. Coppin explained this year, the CRA offered a new initiative called the Community Partnership Program to attract business who could not participate in the event as a vendor. In the past, staff heard from businesses that they could not leave their businesses for two days to participate in the event. The CRA tried to engage other businesses within the CRA District through a community partnership, which was to promote their branding along with key marketing initiatives distributed for Pirate Fest. These included inclusion in key newspaper ads, Every Door direct mailer and on the event program and Renee created the Social Media Kits for the community partners and they received exposure during the event and shout outs. The community partners donated $100 in gift certificates, which were distributed to encourage attendees to visit their store fronts. There were 10 community partners which she reviewed. The CRA also had community partnerships for the Pirate's Rebellion, who received the same benefits. Pirate's Rebellion custom craft beer was sold prior to, and during the event. A copy of an ad promoting the event and the beer was viewed. Pirates Rebellion had two PTV ads enjoyed social media posts. Ms. Smith-Coffey reviewed their marketing initiative poster and Every Door direct mailers for about 10K homes in the western community. The CRA included ads for the community partners in the Sun Sentinel and Delray newspapers. There were shout outs from the main stage for community partners encouraging event goers to stop by the restaurants after the event. Ms. Roberts explained they included community partners with social media kits, and one customized graphic. Examples of how the social media kit was used throughout multiple platforms by actual businesses. Ms. Coppin pointed out they wanted to give the Board as much information as possible and conducted a post event survey of businesses in the surrounding area that did not participate as a vendor or community partner and received 17 responses. She learned that 53% of businesses saw an increase in foot traffic and/or sales during the event and 47% indicated they were not able to account for any fluctuations based on their year to year data. She noted the Hampton Inn had an $8K increase in sales, Boynton Diner had a 10% increase in foot traffic as did the Blossom Shop. Bi-Cycle had a 30% to 60% increase in sales compared to the previous year. B. Proof of Marketing Publication Update Mr. Simon explained the Board requested staff provide cut outs of the ads from the Pirate Fest, which were viewed. Board Member McCray had requested the item and was satisfied. C. CRA Marketing and Business Development Project Update Mr. Hussain gave an update on the social media and video ad campaign. (Board Member McCray left dais at 7:34 p.m.) He explained the effort was to promote local businesses as a part of the economic development initiative to encourage growth and new development in downtown Boynton 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 10, 2019 Beach. In November, the CRA showcased the Boynton Diner and Prime Catch. Once the CRA completed their video production of the business, staff provided a copy of the video to the businesses and in exchange, the businesses gave a gift card to the CRA. The CRA posted the videos of the businesses on Facebook and requested viewers tag a friend for a chance to win the gift card which was provided and which allowed the business to get a lot more exposure. After a week of the video being posted, they announced the winner for each gift card. (Board Member McCray returned at 7:35 p.m.) Mr. Hussain reviewed social media project development is a way to build awareness of CRA projects, grant programs and as a way to engage the business community. In November, the CRA created seven posts to bring awareness to the Ocean Breeze East groundbreaking and the Habitat for Humanity Model Block update, which consisted of new home construction on NW 11 th Avenue. Those posts reached 13,063 and there were 1,725 engagements as defined by likes, comments, shares or clicks. D. CRA Economic & Business Development Grant Program Update Bonnie Nicklien, CRA Grant Manager, explained this fiscal year, there was $453,162 allocated for the program. Pending grant approvals on the agenda, the remaining fund balance would be $275,898. In November, five businesses relocated in the CRA and received a Business Tax Receipt. Ms. Nicklien was unaware if the five new businesses who obtained the Business Tax Receipt were requesting funds; however, she and Ms. Roberts reach out to the business to let them know of available programs. E. Palm Beach County Housing Authority Project Update Mr. Simon explained on November 14, Larry Greenberg, Chief Development Officer, Palm Beach County Housing Authority, advised CRA staff they would send a special application to the Housing and Urban Development Agency for permission to dispose of the Cherry Hill vacant lot through a competitive process, which places the lots for sale on an open market Request for Proposal, and he would apprise CRA staff how the process proceeds and when the lots will be on the market. The process takes about 120 days and the CRA will follow up with Mr. Greenberg. Staff will keep the Board apprised. Mr. Greenberg did not indicate the date he had to submit the application to HUD, but the special application process takes about 120 days. Chair Grant noted the Housing Authority's meeting is December 20th at 8 a.m. He hoped someone would attend. F. FY 2017 - 2018 Close-out for the Nonprofit Organization Grant Agreement with Habitat for Humanity of South Palm Beach County Thuy Shutt, Assistant CRA Director, explained the item is an update and a close out of the above grant. The CRA received funds to rehab, maintain, and build new units for eligible families. The report in attachment two contained all the end results. Habitat for 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 10, 2019 Humanity finished one villa, having two units. The homes are located on NE 2nd Street. Additionally, part of the $40K for the grantee resulted in repainting six affordable housing units within the CRA, providing homeownership, maintenance and educational workshops as sell as levering volunteers and private, public and in-kind donations of time. Ms. Shutt noted the CRA had to have a financial statement review to ensure CRA funds were leveraged correctly. The total cost for the project was $263,689, and it was leveraged with the CRA's $40K. The project cost was $91,832. The CRA leveraged the funds six-fold. The grant was processed and payment will be made in the next check cycle. 11. Consent Agenda A. Financial Report Period Ending November 30, 2019 B. Approval of CRA Board Meeting Minutes - November 5, 2019 C. Approval of CRA Board Meeting Minutes - November 12, 2019 D. Approval of Commercial Rent Reimbursement Grant Program in the amount of $15,000 for E & C's Beauty Experience, LLC located in 500 Ocean at 510 E. Ocean Avenue, Unit 102 Board Member McCray pulled this item. E. Approval of Commercial Property Improvement Grant Program in the amount of $50,000 for The Butcher and The Bar, LLC located in 500 Ocean at 510 E. Ocean Avenue, Unit 101 Board Member McCray pulled this item. F. Approval of Commercial Rent Reimbursement Grant Program in the amount of $21,000 for The Butcher and The Bar, LLC located in 500 Ocean at 510 E. Ocean Avenue, Unit 101 Board Member McCray pulled this item. Motion Board Member Penserga moved to approve the Consent Agenda, less the items pulled. Board Member McCray seconded the motion. The motion unanimously passed. 12. Pulled Consent Agenda Items 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 10, 2019 Board Member McCray discussed items D, E and F together and commented it was nice there are two businesses that have opened up. Motion Board Member McCray moved to approve Items D, E and F. Board Member Penserga seconded the motion. The motion unanimously passed. Eric Anderson, one of the partners, thanked the Board for the approval on behalf of The Butcher and the Bar. He advised they made a conscious decision to locate in the downtown and the grant program had a lot to do with their decision as other cities north of Boynton did not have what Boynton had to offer. He also praised architect Bradley Miller who worked on the project. Mr. Anderson explained one of the business partners is an Executive Chef at the Sundy House in Delray Beach and Market 17 in Ft. Lauderdale and other locations. The other partner was a bar owner in Delray Beach. Board Member Romelus liked the business was bringing 17 full-time jobs. 13. Public Hearing None. 14. Old Business 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 (Tabled 10/9/19) Motion Board Member Romelus moved to remove. Vice Chair Katz seconded the motion. The motion unanimously passed. Mr. Simon explained in November, staff tried to review a similar item and key points of acquisition documents regarding the CRA purchase of the Community Caring Center and the Purchase and Development Agreement terms for the disposal of CRA property to the Community Caring Center on NE 3rd Street, which would be the future home of the business incubator. At the request of Sherry Johnson, Community Caring Center Executive Director, staff met with her last Friday to discuss the terms as the Community Caring Center is meeting this evening on the same terms being presented to the Board at this meeting. The key terms for CRA consideration are to acquire the Community Caring Center property at 145 NE 4t" Avenue for $205K and the CRA provide $45K in financial assistance for relocation and costs associated with predevelopment of the future location, which would be tied to the Purchase and Sale Agreement. Additionally, there would be a lease-back provision to the Community Caring Center to be responsible for the maintenance, insurance, upkeep and operation of the exiting building. Once the CRA 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 10, 2019 closes, they would be a tenant. For some reason, at the last meeting, there was discussion not to exceed 30 months from closing, but the process for the site plan approval and design of the new facility should take much less than 30 months. Staff was suggesting 18-months with perhaps a six-month renewal option, or maybe 24 months. Staff thought 30 months was too long, but it is at the Board's discretion. The Purchase and Development terms were the Community Caring Center acquire the CRA's vacant property on NE 3rd Street for $10 and would include a reverter clause until the Certificate of Occupancy is issued, the CRA have a 10-year, first right of refusal and a 10-year soft second mortgage for the $300k the Board approved in site development and actual construction funding. At the end of the 10-year time period, the silent second would be dissolved. Staff would like the Purchase and Development agreement to contain performance milestones. The closing on the property on NE 3rd Street would be the middle of March and the closing on the existing property when the CRA takes ownership of 145 4t"Avenue would have a targeted closing of January 31, 2020. It would free up funding for the Community Caring Center to continue the design and development of the future location. There would be a separate landlord-tenant agreement. The recourse, if the Community Caring Center goes past the 24 months, would include attorney fees for the prevailing party, but no holdover costs or liquidated damages. Chair Grant supported allowing 24 months and up to 30 months with a 60-day clause to give notice the Community Caring Center would need to leave within two months. He noted the CRA may need that property for utility work as part of the Cottage District. The total for the project is $1,865,000. The CRA Advisory Board recommended giving up to $850K. The Community Caring Center will get a construction loan for $412,825. Mr. Simon explained the Community Caring Center intends to use the CRA's $300K, a first mortgage in the range of$700K to $800K and their capital fundraising would be the cash equity to make up the difference. The exact amount of the project could adjust slightly based on the final construction drawings and the cost of construction when bidding the project. Ms. Johnson advised they are fine with securing a loan. They have been in touch with two lenders, and they had no problem with either lender doing a million-dollar loan. She was certain the Community Caring Center had the loan capacity to construct the building. Board Member Penserga supported Chair Grant's suggestion and asked if the Community Caring Center needed 24 months and what was considered sufficient time to obtain a Certificate of Occupancy. Mr. Simon responded the Community Caring Center already went through the pre-application and basic design plan process. The formal site plan approval is between four and six months and then they would bid and construction would be a year. He thought a compromise would be to say "on or before 24 months" with some ability to extend if needed. If the project receives the Certificate of Occupancy of the new project before the 24 months, it could trigger a 60-day notice to vacate to avoid 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 10, 2019 then obtaining the Certificate of Occupancy and stay in the current building at the same time. There would be a default trigger. Attorney Duhy explained in the past they have included in other agreements that the developer or purchaser would have to move with due diligence and continue to use reasonable efforts to move the project forward. Good faith efforts must be made. Chair Grant favored having a project update after a year and in 18 months. Extensions could be granted if due diligence is shown. Attorney Duhy suggested if picking a time period to end in 24 months, they can apply for an extension for up to six months, as long as showing due diligence and pursuing development. This is achieved by staff communicating with the City and its planning team who is working with the applicant. The development timeline makes the project easy to follow in the system. There was discussion about CRA funding of the project. The CRA would also improve the road with sidewalks within the right of way. The CRA Advisory Board had a recommendation not to exceed $850K. Mr. Simon explained the recommendation to the Board from the Advisory Board was they would support the project up to $850K. The CRA Board decided the land, acquisition and $345K for a total expenditure of the project of $550K was where the Board wanted to end its assistance. The Board could consider giving more funding. Mr. Simon explained the project is part of the MILK Jr. Boulevard Corridor. This item was already budgeted. The CRA funded the road and the acquisition of 145 4t" Avenue and the assistance of$45K and the $300K in this year's budget There are project funds available to fund additional. The items were fully funded in the budget in addition to the $1.9.million for the road. (Board Member Penserga left the dais at 8:05 p.m.) Option B is the contract for sale of NE 3rd. Chair Grant asked the Board if they wanted to include the new terms according to the Attorney. Attorney Duhy clarified Option 1 S for the purchase agreement of 145 NE 4t" includes the $45K in relocation. What was not listed was the time frame in the lease back provision that was discussed as it would need a motion. The total amount being disbursed for options A and B was $550K. Chair Grant requested a motion for option A, regarding the purchase of the existing property to include a six-month extension showing due diligence according to language from the attorney. Motion Board Member McCray moved to approve. Board Member Penserga seconded the motion. The motion unanimously passed. Chair Grant requested a motion to approve the sale of CRA owned parcels on NE 3rd Street to the Community Caring Center for $10 and provide $300K for project development costs for the construction of the new culinary Incubator, food preparation services and business development center. 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 10, 2019 Motion Board Member McCray moved to approve. Board Member Romelus seconded the motion. The motion unanimously passed. Attorney Duhy requested clarification that the motion to approve the contracts will allow the Chair to sign them without bringing them back to the Board, to which there were no objections. B. Consideration of the Contract for the 2020 Pirate Fest and Mermaid Splash Management Firm, Standing Ovations, LLC Motion Board Member Romelus moved to approve. Board Member McCray seconded the motion. The motion unanimously passed. There was brief discussion, this was the last year of the contract and the Board was pleased with their services. The CRA will have to issue an RFP next year. C. Consideration and Discussion of a Purchase and Sale Agreement for the Properties Located at 209 and 217 N. Seacrest Boulevard Mr. Simon commented the item was being brought back and was discussed at the September 12th meeting as staff was directed to work with the property owner Michael Weiner, to bring back terms. Staff was able to simplify the process and was reporting the basic points that would be brought before the Board in January for the above properties. The 209 N. Seacrest Boulevard property appraised at$1.4M. The sale price is $1.4M with a $100K deposit. The consideration of time between execution and closing did not have price adjustments, and $50K of the $100K deposit will be available to the seller 60 days after formal execution of the agreement. The full $100K deposit is credited to the CRA at closing. The seller would close on or before October 31, 2020, which coincides with the opening of the Town Square and the existing leases there. While under contract to be purchased by the CRA, the owner/seller will maintain all aspects and responsibilities of their current lease agreement including maintenance and operation of the building, payments to two taxing authorities and an agreement not to refinance or take any funding out of the property prior to closing. A suggestion was made to include during the feasibility time period, conducting a building inspection since the CRA would be closing in a year and could be agreed on. The property at 217 N. Seacrest Boulevard appraised for $1.6 million, which would be discussed and would require a $200K deposit. That property would not close until February 28, 2023, and for that three-year period, the seller requested $100K of the $200K deposit be released 60 days after the contract is signed and the full deposit would be credited to the CRA at closing. During the time the Post Office is a tenant, which will terminate in January, the City and owner can discuss plans for the Post Office after the 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 10, 2019 lease expires in 2023, and decide for some type of mutually beneficial agreement. The owner has agreed to help facilitate the discussion. The seller shall maintain all aspects and responsibilities, including rent collection until the expiration and closing and the seller will not refinance or borrow against the property. Chair Grant commented the CRA did not know the quality of the building at 209 N. Seacrest Boulevard. His concern is the building is over 40 years old. He asked if the CRA was purchasing the building or the building and the property for $1.4 million. If so, he questioned how much it would cost to maintain the building. He wanted an inspection report and thought if there was over $50K in needed repairs, it be deducted from the purchase price. He supported the same conditions for the 217 property. The CRA can buy in 2023, and someone might offer even more money to purchase the property and wanted the CRA to have the first right of refusal in order to control the property's future use. Board Member Penserga noted the deposits between the properties were different. Mr. Simon explained the higher deposit is for the property with the longer closing. The owner would be under contract but not receiving closing funds for three years. As long as it is counted for the CRA at closing it was fine. Vice Chair Katz supported the acquisition and the additional language. Chair Grant opened the item to public comments. Ms. Oyer noted the postal service was looking to move the post office a few years ago, and a national study was conducted which revealed it was inherent to keep it open because it provides a valuable level of service in the community. She requested the Board consider keeping the post office there. Board Member McCray commented he did not support acquiring the property at the last meeting, but would move forward to purchase the property. He thought the government should worry about where they would put a post office instead of the City. Chair Grant thought it was vital to communities to have post office boxes at the post office because the next closest shipping facility is not nearby. Vice Chair Katz thought if there is any potential to keep anything post office related, it should be a retail operation because there was no way to have a loading bay and parking for the trucks and redevelop the site. He favored a retail post office or private postal service because redevelopment would be difficult with the necessities of a full delivery post office. For clarification, Chair Grant did not include the inspection for the property at 217 N. Seacrest, only the 209 property. Motion Vice Chair Katz moved to approve the acquisitions as amended. Board Member Romelus seconded the motion. The motion unanimously passed. 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 10, 2019 D. Neighborhood Officer Program 4th Quarter Report - Crime Stats Sergeant Diehl explained he presented the quarterly report last month and a question was raised about the crime analysis and type of crimes committed in the area. The updated report contained the information. Board Member McCray thanked Sgt. Diehl for the report, as it had much better information. Board Member Penserga requested this information and the data. E. Consideration of 2020 CRA Board Meeting Dates Mr. Simon explained staff attempted to select dates for the January meeting. The options were January 6t" or the 8t". After polling the Board, the Board decided on January 6t" Motion Board Member Romelus so moved. Board Member McCray seconded the motion. The motion unanimously passed. 15. New Business A. Consideration of Interlocal Agreement between the Boynton Beach CRA and City of Boynton Beach for the funding reimbursement of expenses related to the Agency's relocation into the new City Hall Mr. Simon presented the item. Motion Board Member McCray moved to approve. Board Member Romelus seconded the motion. The motion unanimously passed. B. Consideration of Purchase for the Property Located at 121 NW 1 st Avenue Motion Board Member McCray moved to approve. Vice Chair Katz seconded the motion. Mr. Simon explained the opening bid starts at $10K and generally the CRA has used appraised value or the market value when bidding. The auction will take place on December 18t". Chair Grant wanted a cap of $250K with the recommendation of the Executive Director. 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 10, 2019 Vote Vice Chair Katz amended his motion to include the cap of $250K. The motion unanimously passed. C. Consideration and Discussion of MILK Jr. Boulevard Corridor Development Update Mr. Simon gave an update. Staff was working towards a holistic view of the Corridor. The Board reviewed activities held by staff with the community and explained staff is trying to schedule a meeting with private property owners. Staff held several meetings with Quik Stop and was trying to schedule a meeting with them and their financial advising team to discuss options. There has been no position yet, but they had good meetings. Mr. Simon thought the Bell's property could be a nice complement to development. Board Member McCray asked if Easy Mart was sold and asked staff to look into the matter. Vice Chair Katz thought there may be a tendency to become complacent due to the Centennial project. The plan is to develop the entire street. It was good to see what opportunities were out there. Mr. Simon explained staff can bring updates if desired. Board Member Penserga supported the request. D. Consideration of the New CRA Affordable and Workforce Housing Grant Program Ms. Shutt explained in 2017, the CRA developed a program to fund non-profits. The two grantees were Habitat for Humanity of South Palm Beach County and the Community Caring Center. Since then, there were statutory changes this year that discontinue the ability of CRAs in general to fund non-profits. The Board did budget $95K for fiscal year 19/20 for construction/rehabilitation for affordable and workforce housing. Staff provided parameters for the Board to consider when developing grant applications for the funding. One change is the applicant could be a for-profit or non-profit entity. The Board should consider the maximum grant amount per application and the minimum number of units to be provided. Staff recommends ownership should be a fee-simple type of ownership versus a rental, and access to funding would be if the applicant provides all the completed reimbursement requests and documents that the CRA could reimburse within 30 days. The review process would be similar to the current grant program, having an application for reimbursement requirements and grant agreements to be approved by the Board and credit reports should be submitted for all the applicants. The Board should consider maintenance and if the Board would like something drafted in the grant program to maintain affordability, if needed, or if the tangible assets with workforce housing is enough. The Board would need to determine what type of instrument to use to secure public interest when the grant is given to an entity. Staff was seeking input and will return to the Board after working with the attorney. 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 10, 2019 Muhammad Abdallah, Habitat for Humanity, 181 SE Delray Beach, Senior Director, Government and Community Affairs, thought there were some items that may be an issue for Habitat for Humanity. He inquired about how fee-simple ownership would work with their land trust, and would like to discuss it with staff. He queried if Habitat would have the first right of refusal to purchase the property back and if it would be maintained as affordable housing or not. The second question was about the soft second mortgage which was forgiven after 15 years and he noted Habitat has zero interest loans for 30 years and inquired what would occur with the remaining 30 years. Many of their homeowners stay in the home beyond 30 years. He commented Habitat staff and its affiliates will sit with staff and share information about their land trust and how it works on their end. Chair Grant commented this item pertained to residential and not commercial. He thought it was an option to build wealth in the community and did not think they needed the soft second for residential communities like they do for commercial communities. Chair Grant was okay with not having the soft second and not having a minimum of two housing units. He would like to open the program up to local contractors. He understood with the land trust, it is affordable because property owners do not pay tax on the land and it helps maintain the property in the future. The CRA has $95K and he supported allotting $50K towards new home construction and $45K towards rehabilitation of homes. When they issue applications, they will understand a smaller organization may only need $5K for windows on a home. He was concerned if the CRA should put a cap on the value of the home or if there was an income restriction to qualify for the grants. Mr. Simon suggested using a median-income cap and apply simple income verifications on the owner which staff could conduct on a family's income of affordable. Chair Grant thought rather than doing public information of a homesteaded property giving preference not greater than $250K of appraised value according to the property appraiser. This would be for rehab and new construction. Board Member Romelus agreed with removing the soft second mortgage, but needed clarification about the 15-year provision. She inquired how the home would be kept affordable. Mr. Simon explained there were several ways to accomplish that goal, which he discussed. She also favored, when allocating funds, the contribution be strictly used for brick and mortar and not salary or staff. Staff will bring back the draft application with eligibility criteria and work with legal on the maintenance and affordability of the program. E. Consideration and Discussion of the Letter of Intent Submitted by the Surfing Florida Museum for the Event Management of the Historic Woman's Club of Boynton Beach - Revised This item was heard earlier in the meeting. 16. CRA Advisory Board 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 10, 2019 Chair Grant gave Mr. Simon two flyers regarding properties for sale in the Heart of Boynton that were both commercial and industrial. He requested the CRA Advisory Board review if acquisition would improve economic activity in the HOB. He also wanted the Advisory Board to review the United Congregational Church, which the Library uses, which should be completed by the end of next year, and what the future plans of the building would be. He thought the building could be used as an entrepreneurial center. Board Member McCray thanked staff for the sympathy card on the passing of his brother. A. CRA Advisory Board Agenda - December 5, 2019 B. Pending Assignments C. Reports on Pending Assignments D. New Assignments 17. Future Agenda Items A. Consideration and Discussion Concerning the Management of the Historic Woman's Club of Boynton Beach B. Ocean Breeze East Update and Consideration of Purchasing Washers and Dryers for all Dwelling Units 18. Adjournment Motion There being no further business to discuss, Vice Chair Katz moved to adjourn. Board Member McCray seconded the motion. The motion unanimously passed. The meeting was adjourned at 8:50 p.m. Catherine Cherry Minutes Specialist 18