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Minutes 09-08-20 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD ONLINE VIA THE GOTOWEBINAR PLATFORM BOYNTON BEACH, FLORIDA ON TUESDAY, SEPTEMBER 8, 2020, AT 5:30 P.M. PRESENT: Steven Grant, Chair Mike Simon, Executive Director Ty Penserga, Vice Chair Thuy Shutt, Assistant Director Justin Katz, Board Member Tara Duhy, Board Counsel Woodrow L. Hay, Board Member Christina Romelus, Board Member 1. Call to Order Chair Grant called the meeting to order at 6:23 p.m, after the adjournment of the City Commission First Budget Hearing. 2. Invocation 3. Roll Call Roll call was taken. A quorum was present. John McNally, Director ITS, explained how the meeting would proceed and how the public could participate. 4. Agenda Approval A. Additions, Deletions, Corrections to the Agenda There were no changes made to the agenda. B. Adoption of Agenda Motion Board Member Katz moved to approve the agenda. Vice Chair Penserga seconded the motion. The motion unanimously passed. 5. Legal A. Ho v. City of Boynton Beach, et al. Meeting ie Community Redevelopment Agencyoar Boynton Beach, Florida September 8, 2020 Tara Duhy, Board osel, explained the CRA wasserved i complaint, filed in the US District Court by Wingand Karen Ho namingthe City, the CRA and the City Building Department alleging er of allegations under Section 28 of the USC Section1983. Their answer will be due on September 15th. Her firm analyzed the complaint ill likely move to dismiss in lieu of an answer as the allegations in the complaint are directed at actions taken against the City and not the CRA. Shouldit gets the answer and motion to dismiss stage, they could schedule a shade session. They are coordinating i the City in defense of this action. Chair Grant recalled the Boarda the opportunity to buy the property for $140K from them. The Board countered offeredfor $120K, is the Ho's declined. asked if they have another opportunity to purchase the property and at what price to end all litigation. Attorney Duhy explained the complaint es not get into that; it was more of actions taken regarding CoeEnforcement's lin the property. thought at the appropriate time, r. Simon could reach out to them, after the case is dismissed, and see if they woulde interested, but wouldcareful to do so, in light of pendinglitigation. suggested conveying the thoughts to the lii ar , but until the litigation e different tone, she suggested refraining from h behavior. Chair Grant was aware Mr. Simons of not speak i the Ho's. He asked if the CRA Boardas interested in purchasingthe property and seeing hat price they wanted or seeing a the case plays out in Federal Court. Board Member Romelus commented if staff and legal avise them this is a direction to investigate and see if it was an tion, she was open to doingso, but at this point, she suggested followingal's vice as did Board Member Hay. Attorney Duhy explained the answer was due September 15th. If the Board directed her t , she could schedule shade meeting immediately efore the October meeting. She explained what a shade session was to the public. Chair Grant was not in favor of the shade session. He wanted to see if the case was dismissedr not. Board e er Romelus commented, in response to ChairGrant's request, if this was the route he wanted to investigate in terms of trying to see if there is a settlement r, she would be in favor of a shade session. If not going that route, there is no need for a shade session. Chair Grant requested s al counsel making an offer to end i . Attorney Duhy did not advise that happen efore September 15th. Chair Grant explained the CRA shout file the answer and then ask for the offer. Without Legal having to argue the motion to dismiss, they could end the litigation, the City can obtain the property, or the City caul ave forward withits foreclosure complaint. The CRA could spend the money to defend itself and the City could spend the money to defend itself. Attorney Duhy explained e allegations are numerous withrespect ctions from the City. She thought if there would e discussions about settling, they should schedule a shade session when warranted. B. Considerations of Revisionsthe CRA Letter of Intent to Purchase Property Policy Attorney Duhy explained there is a lot of interest in CRA properties and many parties are sending solici Letters of Intent (L I). In providingguidance to those individuals Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 8, 2020 how to proceed, up until the public hearing when they would discuss them, it became clear to staff and her they could add clarity to the existing policy. They added additional details regarding the procedure that occurs as soon as a LOI is received. The LOls are unsolicited and are not governed by the rules and regulations as when they issue an RFP. It is important to have a clear policy for LOI's especially when they receive more than one LOI for the same property. Attorney Duhy proposed three options as contained in the meeting backup and reviewed each one. Discussion followed. Board Member Katz was concerned and recalled at the last meeting, a LOI was brought forward. There was meeting backup and a presentation made the public had not seen. He would like future LOIs, when initially put on the agenda, not to include backup and have a built-in 30-day delay so the Board would not vote on it at the meeting. Some of the unsolicited offers could be projects people had never seen or thought about. A 30-day delay would apprise the public an entity is interested in building something. Board Member Romelus understood if the LOI is not received in time for publishing it will be held until the following CRA meeting and thought it solved the 30-day issue. If staff has published the intent to dispose, the public is notified of interest in the property and the LOI and all the documentation submitted is public record and is available to the public unlike when an RFP is issued because the LOI's are unsolicited. With RFP's there is a period of time the information could not be discussed. The only difference between bringing it directly to the Board and publishing the notice versus publishing the notice immediately is there is notice to the public that someone is interested in the property and they can submit a Public Record Request. Chair Grant asked if their policy could extend 60 or 90 days if receiving a LOI. Attorney Duhy did not recommend it as a policy and thought if adding more time, she recommended issuing an RFP as it has a shielding period of time. An RFP should be issued if longer than 30 days. Board Member Romelus favored the market indicating what they see was possible for a site as opposed to the Board dictating what could be built for a site. She was okay with what Attorney Duhy was proposing. Chair Grant was satisfied with the current policy. If they approve it and negotiate it for 90 days, the current draft does not show their ability to negotiate. If they receive another LOI, they can cancel the first LOI and go with an RFP. Attorney Duhy explained they could take out the 30 days and just issue a notice of intent to dispose so the Board had the discretion to set the time period. Chair Grant requested a motion to table the item. Attorney Duhy could speak with the members one-on-one about it and draft a succinct policy based on the feedback. Motion Vice Chair Penserga moved to table. Board Member Katz seconded the motion. The motion unanimously passed. 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 8, 2020 _. 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 Board Members Katz and Hay had no disclosures. Vice Chair Penserga disclosed he spoke to Sam Abocot about the WPBR LOI, and he attended the station for various interviews. Board Member Romelus spoke to Harvey Oyer about the property at 115 N. Federal Highway and had the same disclosures as Vice Chair Penserga regarding the WPBR LO 1. Chair Grant made comments regarding his opinion and TIF that, in his opinion, in order to get developments constructed, they need to help the developer to be profitable. He wrote what he said on Facebook, as follows: "I cannot sleep tonight because of the decision of the Boynton Beach City Commission not considering hearing about the potential community benefits agreement for the Boynton Town Square. On Tuesday September 1St, Board Members Katz, Romelus and Vice Chair Penserga did not want to create equity in the community. Future tax dollars would have been spent on scholarship funds, community revitalization, extra free parking, workforce housing and what upsets him the most is the partnership with Habitat for Humanity to offer down payment assistance for first time homebuyers in Boynton Beach. The picture shows the estimated millions of future tax dollars that will not be spent to create a more equitable Boynton Beach. Furthermore, JKM Developers has a permit ready to build the parking garage and have answered final comments to the South Residence of Town Square to start construction by the end of 2020. Please share if you would like to spread this information as most did not know the decisions being made tonight." Chair Grant respected the Board for not agreeing with him and hoped they would respect his comments while not agreeing with them. He spoke with Centennial and toured the Ocean Breeze East site and was so pleased the Board provided funds so each unit could have a washer and dryer. He thought it upped the class of the development. He spoke to several property owners, starting with the Inn at Boynton Beach who was looking for assistance to upgrade the hotel. He thought they would want to use TIF because sales and bed taxes derived from hotels are beneficial. He spoke with Davis Camalier's attorney regarding his property and they have a lot of vacant land. They have to negotiate with what they want to do with the deed they gave him, such as do they want a park, or do they want to negotiate to buy the property on the west side of Federal Highway to hopefully include into the 115 N. Federal Highway. He spoke with Art and Frances D'Almeida if they want a holistic approach to develop downtown Boynton Beach. They have over 10 acres of vacant land in the downtown, and they have the ability and option to say, you cannot change the past, but they can make the future better. He will move 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 8, 2020 forward with having a collaborative session with the owners of these properties to have a unified vision. He also spoke to JKM Developers, Harvey and Christian Oyer, and Mr. Isram. 7. Announcements and Awards A. 2020 Florida Festivals & Events Sunsational Awards Tracy Smith Coffey, Marketing and Business Development, announced the Florida Festivals and Events Sunsational Awards is a statewide organization of professional festival event planners, managers and marketing individuals in the private/public sectors. The organization announced its winners at the 26th Convention, held virtually on August 25th. Nominations were accepted in nine categories and 463 entries were submitted. The CRA submitted 36 entries and got 11 awards, which she named. Chair Grant was pleased Rock the Marina received the award. The members thought the awards were phenomenal. 8. Information Only A. Public Comment Log There were no comments received. 9. Public Comments Chair Grant opened the floor to public comments: Mark Myer, Coquina Cove, a residential community across from Ocean Palm Plaza, formerly known as Yachtsman's Plaza, spoke about agenda item 10D, the Coin Laundry at 115 N. Federal Highway. Mr. Myer explained the area's land use designation of special high density residential, prohibited the use of the business. He thought it was not appropriate to approve the grant until the outstanding Community Standards issues were addressed and the property is appropriately rezoned. Tom Warnke thanked the CRA for their direct financial assistance to CRA District businesses impacted by COVID. He noted at the May 12th CRA meeting, the Board made a detailed proposal about having Boynton Beach Recreation and Parks Department assume management of the Women's Club that was approved, including transfer of ownership from the CRA to the City. Four months have passed, and the issue is listed as a future agenda item. This evening the City Manager indicated an Interlocal Agreement(ILA)would be completed in 60 days. He asked what the process and timeline was the CRA would follow when the draft ILA is received by the CRA. Mr. Simon explained the steps are to present the ILA to the Board. The City would take ownership of the building in the future and if it were a deed over and the CRA provided 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 8, 2020 funding, it would depend on the ILA presented to the Board. At the time of review, if all is in order and their request is to take ownership immediately. The property could be transferred in 30 days and the City would own and manage the building. If the transfer is in the next fiscal year, while the ILA may be presented and discussed, the transfer would not occur until the date in the ILA. When they find out, it would be simple to transfer ownership. Mr. Warnke thought the delay may stifle City programming. Once COVID is lessened, the CRA will continue to rent the building until the City takes ownership. Susan Oyer, 140 SE 27th Way, spoke to several Board Members regarding the property at 115 N. Federal Highway and clarified her comments were her opinions, not her family's opinions. Deris Bardales, owner DDS Consulting Group, an engineering firm, wanted to speak about the property at 1110 N. Federal Highway. Chair Grant explained he would be given the opportunity to speak when the item was heard. No one else coming forward, Public Comment was closed. 10. Consent Agenda A. CRA Financial Report Period Ending August 31, 2020 B. Approval of CRA Board Meeting Minutes - July 14, 2020 C. Approval of CRA Board Meeting Minutes - August 11, 2020 D. Approval of Commercial Property Improvement Grant Program in the Amount of $15,000 for CCCEBYRNES, Inc., d/b/a WaveMax Laundry 1015 Located in Ocean Palm Plaza at 1550 N. Federal Highway, Unit 1 E. Approval of Commercial Rent Reimbursement Grant Program in the Amount of $15,138.54 for Solloway Acupuncture and Chiropractic Professional Association Located in Colonial Center at 1200 S. Federal Highway, Unit 202 F. Approval of Commercial Property Improvement Grant Program in the Amount of $13,500 for S. Solloway Acupuncture, P.A. Located in Colonial Center at 1200 S. Federal Highway, Unit 202 G. Approval of Commercial Rent Reimbursement Grant Program in the Amount of $25,863.75 for Pharm X Universal, LLC d/b/a 500 Ocean Cafe Located in 500 Ocean at 510 E. Ocean Avenue, Unit 107 H. Approval of Commercial Property Improvement Grant Program in the Amount of$50,000 for Pharm X Universal, LLC d/b/a 500 Ocean Cafe Located in 500 Ocean at 510 E. Ocean Avenue, Unit 107 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 8, 2020 11. Pulled Consent Agenda Items Vice Chair Penserga had a question about item D. He asked when someone submits an application for funding, if the business zoning and community standards are automatically reviewed. Mr. Simon explained the CRA does not bring forward grants with business entities that are prohibited from obtaining a Business Tax Receipt (BTR) from the City. While there may be issues raised by the public, if an applicant obtained a BTR and Certificate of Occupancy and provide the documents to the CRA, the CRA can assist them. The use also has to be compatible with their guidelines. In this instance, the City may have issues with a plaza or owner of a plaza, but the business entity requesting a grant is a tenant, trying to occupy a bay. If there were issues, it would be directed to the plaza owner and not the tenant. Motion Vice Chair Penserga moved to approve the Consent Agenda. Board Member Katz seconded the motion. The motion unanimously passed. Board Member Romelus hoped that in no way they penalize individual small business owners because of a plaza owner. Chair Grant noted a question from Zack Lansat about obtaining a rental grant and buying an Allstate Agency. He spoke with Ms. Nicklien who invited him to the Zoom meeting. Chair Grant noted the CRA offers grants. There were no funds available, but there would be funds available in October. He suggested he check the website for applications. Mr. Simon explained there is a specific issue with regard to purchasing this business that staff can discuss when the discussion on new grants for next year is heard. 12. CRA Projects in Progress A. Marketing, Business Promotions, and Social Media Update Rene Roberts, Social Media and Communications, had a presentation prepared. She reviewed the Live like a Local social media campaign and social media followers were encouraged to participate in a contest advertised across all social medial platforms for a chance to win a charter. Staff recorded promotional videos about safety measures taken by the charters and businesses to protect against COVID. Staff also started to promote Phase II of it's Like a Local social media campaign promoting health, wellness and fitness businesses in August. Followers were encouraged to engage in the contest to win a $50 gift Certificate of their choice. Staff shared a variety of both City and CRA projects such as the Town Square, Cultural Center, Ocean Breeze East and the Historic Women's Club of Boynton Beach. Staff continues to promote safety measures and special offers for new and existing CRA District business. 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 8, 2020 Ms. Smith Coffey reviewed print and radio ads staff issued in August to promote the various charters at the Boynton Harbor Marina. There were quarter page ads in the Coastal Angler featuring dive charters and a full-page ad in the Delray and Boca papers featuring businesses located in the Marina. Staff expanded their reach for the dive charter via WRMF97.9 for a 30 second ad that promotes the Live Like a Local Contest for five days. The package of the ad placement on WRMF website was viewed. Mercedes Coppin, Business Promotions and Event Manager, explained in August they featured two businesses located on E. Ocean Avenue. The first blog focused on the 400 block of the Avenue including an overview of E. Ocean Cafe, Art Sea Living, Sol Oasis, the Blossom Shop, and the Original Barber. The second blog was a write-up of each business located at Ocean Plaza at 640 Ocean Avenue. Collectively, the blogs have been viewed more than 350 times. Over the past few months, there have been a variety of new businesses that have opened. In August, ribbon-cutting ceremonies were conducted at Guaca Go and Organic Kitchen and Mercantile. B. CRA Economic & Business Development Grant Program FY 2019-2020 Year Ed Report Bonnie Nicklien, Grants and Project Manager, reviewed the above. The program provides a 50% matching reimbursable grant for eligible property improvement expenses and assistance with the first-year rent. The total budget was $948K and the balance after tonight's approvals is $3,656. The Board approved $259,601 in Commercial Rent Reimbursement grants and $402,937 in Property Improvement grants. The program helped 14 new business adding over 23K square feet of new commercial space and helped five existing businesses to expand or making facade improvements totaling over 17k square feet. The CRA added eight new restaurants or specialty food businesses, two hair salons, three retail stores, three medical or professional offices and three commercial property fagade improvements. The CRA also had the challenge presented by COVID. The Board approved Commercial Rent reimbursements to current and/or prior grant recipients from the past five years, with an additional six-month extension, at 50% matching reimbursement for the months March through August. The program provided COVID relief. The CRA Board approved $1 million in funding for small business disaster relief forgivable loans to offset utility, payroll, and inventory expenses. Over seven weeks, the CRA distributed about $10K to 101 businesses in the CRA. Vice Chair Penserga asked if the 500 Ocean storefronts were occupied. Ms. Nicklien explained there are seven commercial units on the ground floor. As of today, there are six signed leases. Of the six, five are grant recipients. The upstairs office space is leased, and the owner is interested in applying for a grant. There is only one unit left with 25K square feet of space. They spent just shy of$2 million in assistance for CRA businesses. Mr. Simon applauded the Board and their hard work to get the funds to the businesses. The funds took care of all the requests, but three applications were not fulfilled. C. Palm Beach County Housing Authority Project Update 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 8, 2020 Mr. Simon advised at the August meeting, the Board asked for an update, but the Housing Authority staff was meeting with HUD to discuss applications for disposal for property in Cherry Hill. Mr. Simon contacted them on September 1St, and was told they had a good meeting with the technical team in July and they are anticipating submitting the disposal application to HUD at the end of September. They estimate it will take 60 to 90 days to approve the application ,which is how they will dispose of their various properties. They have a large portfolio of properties they are disposing. Chair Grant requested the Board wait until the end of the month and CRA staff bring back the application that was submitted, and if not submitted, they send a letter of support to the Governor, the HUD Director, and Secretary stating their desire to work with the Housing Authority, detailing the delays they are experiencing in moving forward with the vacant lots. There were no objections. D. Model Block Affordable Single-Family Home Ownership Project Update Thuy Shutt, Assistant CRA Director, explained construction is proceeding on the two Habitat for Humanity properties and the painting and the finished work is done. Work on the third unit on NW 11th is proceeding with the finished stucco and painting and the same for the two CDC properties. Visuals of the progress were viewed. Ms. Shutt hoped they could get the volunteers needed for the properties once the community reopens again. Chair Grant drove by the property and the majority of the work was done. The road travelling to NW 1 st Street has made a huge difference in the traffic and he thanked Habitat for Humanity and the CDC for working together to have affordable homes and improved traffic in the Heart of Boynton. He requested they post the pictures on the CRA Facebook and social media pages. E. Neighborhood Officer Program 3rd Quarter Report for FY 2019 —2020 Sgt. Diehl, Boynton Beach Police Department, explained they were working diligently with schools. Vice Chair Penserga asked about the crime report, if there were different or new trends to crime or anything they needed to know about. This quarter was the third quarter, and the second quarter of calendar year. Since COVID and there was a downtick in crime. As the community was reopening, there was a slow increase in larceny and retail theft, but working with their intelligence officer, they are tackling the issue. They are trying to get a grasp on people walking in and out of stores with face masks and merchandise. They are still active in handing out food at the Boynton Beach mall. A listing of the crimes forthe quarterwas viewed. Sgt. Diehl gave an update on Neighborhood Officer Paramore advising when he is released, he will be released to full duty status. The Board wished him a speedy recover. 13. Public Hearing 14. Old Business 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 8, 2020 A. Discussion and Consideration of Fiscal Year 2020-2021 Project Fund Budget Vicki Hill, Finance Director, reviewed for Fiscal Year (FY) 20/21, the CRA would have Tax Increment Financing (TIF) of$14,852,092. The Marina was looking at $1M and they found a fund balance surplus of $100K. Total revenue was $15,952,192. The debt service payment totaled $2,137,822. The Operating Budget was $2.8 million, total debt and operating expenses were $5,035,480. The Boynton Harbor Marina will also need $1 M. Walmart was in its 9th year for TIF and its payment was $17,500, Seabourn Cove, in its eighth year would receive $425K; Seabourn Cove Phase 2, would receive $175K; the Preserve was in year six of TIF payments and would receive $27,500; and 500 Ocean was in year two and would receive $436K. She announced the City of Boynton Beach has asked for $3.7 M for the Town Square project. Ms. Hill reviewed the Project Fund, noting the Board already allocated funds. She asked if there were any changes to the following allocations: the MLK Jr. Corridor Redevelopment project. There was a carryover of $1.1 M from 19/20 to 20/21; MILK Jr. Blvd Corridor Centennial Project local government match was $625,750 which would be allocated for FY 20/21. The NOP office location needed $130K. The Board allocated $50K for FY 20/21. There was $200K rolled over from the Property Acquisition line item and staff added $583,5311 totaling $784,136 for property acquisition. The Board rolled over $385,825 for the Cottage District, the Mangrove Park and E Boynton Beach Boulevard extension project had the funding for it from FY 19/20 which would be rolled over. The Boynton Beach Boulevard Streetscape improvement had $250K from FY 19/20 and staff was adding $618,580 totaling $858,580 for FY 20/21. Acquisition for the 411 N Boynton Beach Boulevard will be closing October 2020. They needed $930K and they had $650K from FY 19/20, so they only needed $280K from FY 20/21. Acquisition for 209 N. Seacrest Boulevard which will close in October needed $1.3M and it was earmarked for FY 20/21. The CRA will need $1.4M for closing the 217 N. Seacrest Boulevard building which is the post office. The NOP program is in its fifth year and the CRA did not use $200K in 19/20 which will carry over to FY 20/21. Staff will add $329K which is $529K that they asked for. The Commercial Economic Redevelopment grant program has $2K that will roll over and they are adding $400K totaling $402,013. The Neighborhood Signage grant has $25K for FY 20/21. The Business Promotions and Events Assistance Program will roll over $140K and staff will add $163,623 totaling $303,623 in FY 20/21. The Business and Marina Marketing Assistance program will roll over $48,726 and staff will add $25K in 20/21 totaling $73,726. The Redevelopment Assistance for the Palm Beach County Housing Authority lots had $100K from 19/20 rolled over and staff is adding $400K for a total of $500K The Sara Sims amphitheater has $50K for FY 20/21. The Sustainability Tree Canopy program had $20K from 19/20 and staff will add $15,650 for a total of $35,650. The Residential Grant program rolled over $95K for 20/21. The Woman's Club renovation rolled over $238,525 from 19/20. The Site Work and Demolition line item rolled over $37K and they were adding $62,378 to total slightly over $100K. Professional Development Services has $60K from 19/20 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 8, 2020 ...........-, and staff added $57,100 totaling $117K. Legal services will roll over$6K and staff added $125K totaling $131 K. Per the Board, there is $280K in contingency. Chair Grant thought the budget looked good. They removed funds for the NE 3rd Street Roadway Improvement Project and he wanted funds there to move forward with the design and moving Public Works from its current location tote Rolling Green site. Vice Chair Penserga asked why the CRA needs $130K for the NOP office and why they only budgeted $50K. Mr. Simon explained some of this transpired between the August and September meetings. They obligated the $130K of funding in this year's budget for the it out of Ocean Breeze East site, which was in the agreement. Since then, it was proposed funding inthe current year be used elsewhere in the budget and at this moment all they identified was $50K for the office. If it is relocated, they may not need the funds at all and they could use it for the Commercial Development on the MLK corridor project which will include the NOP office, if it be the will of the board. They could also seek funds from contingency. Chair Grant thought the NOP was not ideally at Ocean Palm Plaza, but it was ok for the following year. Vice Chair Penserga preferred the $50K be transferred over to the Sustainability Tree Canopy Fund. Chair Grant wanted to keep funds with the NOP if they could expand the program and help children. He asked if Vice Chair Penserga of agree to split the difference providing $25K to the NOP program and the $25K to the tree canopy, which was fine. Vice Chair Penserga asked by $200K was rolled over for NOP and learned the budget called for three officers and one assistant, they only funded two officers: Officers aro are and Rivera sot e id not use all of the funding. Dr. Lois Smith was concerned about the MLK corridor noting $1.8 million was slated for it. She asked when they are making projects known and when they of developed. There is a vacant building on the corner of MLK Jr and Seacrest. Chair Grant explained the CRA had an opportunity to purchase the vacant building last year, but they tabled it and the property owner withdrew their offer. The CRA also transferred funds from last year's budget to this year for the MLK Jr. Corridor, and they had funds for the relocation of the Community Caring Center, which did not go forward. The Wells Landing LLC project that they will discuss received 9% tax credits from the Florida Housing Finance Corporation is was the project they would help fund to get the biggest and best project on MLK with the land they have available. Last week, Dr. Smith asked out the properties in need of development and assistance for the elderly to improve their property. She wanted to see something substantial and did not see an end result. The CRA allocates millions and then properties are not kept up and the community wonders what is happening with the money. She queried if they would keep transferring funds each year to different projects and asked what was happening with MLK in the future. Mr. Simon explained the Ocean Breeze East project is a $30M project. The Cottage District offers single-family homeownership. The Centennial Wells Landing project on MLK Jr. Boulevard is 124 units and has 8,500 square feet of retail commercial space the CRA will 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 8, 2020 try to fill with neighborhood services and local qualified vendors. The $1.1M is going towards this project and other projects on the corridor to assist with the cost of building commercial space and to maintain it. Dr. Smith noted the funds were carried over. She asked where the funds are each year that should be allocated to each area. Mr. Simon explained the reason why the money is still there is because the project was funded by the State. The CRA kept the funds there and rolled forward as the CRA anticipates it will be spent when the project begins construction. She asked with funds allocated to Boynton Beach each year, where the funds are that were directed to the Heart of Boynton. She noted MLK has been undeveloped for years and it is still blighted. She understood Ocean Breeze East will be a rental property and residents cannot buy in and have a sustainable living arrangement. She asked what was occurring to build wealth for all. Chair Grant requested confirmation the CRA needs to do more and help residents with residential development and assistance with first time homebuyers. Dr. Smith commented the individuals at Ocean Breeze West and even Habitat for Humanity are paying enormous mortgages, and there was a land trust which took the land from under the house. They need sustainable growth for the residents in Boynton and the HOB is not engaged with sustainable increase. She proposed MLK could be rid of crime, but if you build something worthwhile people will see the CRA is sincere. Chair Grant explained the CRA currently has an RFP for the Cottage District to build 30 sustainable and affordable houses in the vacant lot. Tenants at Wells Landing will have half the rent paid for by the State to make it affordable for low income and very low-income individuals. It helps residents to create wealth by allowing them to save up a down payment for a new home. There are too many vacant lots in Cherry Hill and they were discussing how to move forward with the Housing Authority. There is a Residential Grant Program to help owners improve their homes and build new homes. There are some properties that could use their grants. They have not focused on increased manufacturing and industrial jobs, and they could focus on it next year. The City is moving forward with talks to move Public Works to another area and build a mixed-use project with commercial and residential in its former location. Board Member Hay lived in Boynton for 50 years and agreed, noting the activities Chair Grant had referenced. There are homeownership opportunities at Ocean Breeze West, and not at Ocean Breese East. The Cottage District is upcoming, and they had a discussion with the community and they wanted homeownership, so they will be home ownership units. The Model Block project has nothing but homeownership. The Centennial project on MLK is coming. There are a lot of activities he was excited about. He felt they were moving in the right direction. Dr. Smith was before the Board last week. She received a letter from Community Standards highlighting violations on their property. She asked why are they not cutting the trees and that she was cited for something unrelated to her complaint. She thought it was a step backward. She thought the CRA should be equitable. Motion 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 8, 2020 Board Member Hay moved to approve. Vice Chair Penserga seconded the motion. The motion was clarified as amended for the NOP and the $25K. The motion unanimously passed. B. Consideration of Resolution No. R20-04 Adopting the CRA Budget for Fiscal Year 2020-2021 Ms. Hill explained this was the Resolution to adopt the budget for FY 20/21. Chair Grant requested a motion to adopt as stated. Motion Board Member Hay so moved. Board Member Romelus seconded the motion. The motion unanimously passed. C. Discussion and Consideration of Relief Options for Grant Payoff Requirement in CRA Homebuyer Assistance Program Mortgage between Lasendra Hoggins Wilson and the CRA. Mr. Simon explained the recipient requested the item be moved forward. She had appeared in February 2018 and CRA agreed to subordinate the HAP mortgage so Ms. Hoggins Wilson could refinance the home. The refinancing was to provide improvements to rent the property, which the Board also allowed her to do without penalty under the terms of the grant. On April 10, 2018, the Board approved a second amendment to the HAP Agreement with if the property was sold to a qualified or non- qualified buyer and to refinance the property. There was no agreement to reduce the grant from $47K to $5K. The property was refinanced in July 2019, and the CRA subordinated to the first mortgage. She requested the Board consider the original grant payoff amount and offered a formula reduction based on how long she owned the property. She was trying to sell the property and if sold any debt outstanding would be paid off. Ms. Noggins Wilson, 508 NW 12th Avenue, appreciated the Board's help and commented she was not able to refinance the full amount, as the bank would not allow the $47K to be given and it was added back into the debt. She has another child going off to college and no longer needed the home. It was difficult to sell the property. If she pays back the $47K, she would not have anything with which to purchase a new home. She asked if there were any options. Chair Grant felt with the first-time income qualified buyer, he would take no money and wish them well building home equity and wealth. If selling to someone looking to rent out the property, he did not think the Board approve it. He thought 10 years was a third of the outstanding amount. He hoped the home would be sold to a first-time homebuyer. Ms. Hoggins Wilson explained when she approached the Board the last time, the 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 8, 2020 repayment amendment was removed and if sold to another income qualified, she did not have to pay it back. She favored selling to an income qualified family. Chair Grant asked about the second part, if she could not find an income qualified buyer. Board Member Romelus asked why the clause was removed. Attorney Duhy commented it was not removed, it was clarified. The terms were as they are. It was written differently, as Ms. Noggins and the Board had a different interpretation. The Board could amend it. Motion Board Member Romelus moved to amend the contract to include the clause. Board Member Hay seconded the motion. There would be no repayment if sold to a qualified low-income buyer. The motion unanimously passed. Mr. Simon inquired if Ms. Hoggins sold to a non-income qualified buyer, if she would pay back the $30K. Ms. Noggins countered with a $15K repayment. There were no objections. Motion Board Member Hay moved to accept Ms. Hoggins terms. Board Member Romelus seconded the motion for discussion. She asked if the amendments were permissible with the program, if they could continue the program. Attorney Duhy explained the program is no longer offered. She thought there was no limit on what the home could be sold for and the amendments were legal. The motion unanimously passed. D. Consideration of the Second Amendment to Fund the Increasing the Quality of Life Program of Habitat for Humanity International (d/b/a Habitat for Humanity of South Palm Beach County Ms. Shutt presented the item. Habitat for Humanity was to complete the items in the grant agreement for the above program for completing three new single-family homes: one detached, one duplex and a villa. They completed three neighborhood revitalization program and conducted homeowner and educational workshops. They are asking for 120 days for the last unit at 110 NW 6th Avenue. The duplex was completed and they are awaiting the Certificate of Occupancy. The difficulty was getting the volunteers to complete the home amid the pandemic. Habitat requested to have the unit completed and CO date moved from October 15, 2020 to February 15, 2021, taking the holidays into consideration. Staff agreed and the draft amendment was attached. The Habitat for Humanity representative was present. Motion Board Member Hay moved to extend the deadline. Vice Chair Penserga seconded the motion. The motion unanimously passed. 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 8, 2020 E. Consideration of Request for the Commercial Property Improvement Grant Program in the Amount of$350 for Marketing Innovations Enterprises, Inc. for the Property Located at 810 N. Federal Highway Chair Grant presented the item. The applicant worked hard and completed all repairs, bringing the property into compliance. Motion Board Member Hay moved to approve. Board Member Romelus seconded the motion. The motion unanimously passed. F. Consideration of Letters of Intent for the CRA Owned Property located at 1110 N. Federal Highway Mr. Simon explained this item was before the Board by Ben and Sam Rogatinsky, WPBR Radio, located on South Federal Highway, who submitted a LOI to acquire the property owned by the CRA to build a new office for the radio station. They offered a purchase price of $25K plus $60K in worth of advertising over the course of five years. The Board accepted the terms of the LOI and directed staff to post the notice to the public of the selling. During the 30-day notice period, the CRA received a second Letter of Intent on August 18th, by BDH Consulting Group also a CRA business for a location for their engineering planning services. Their options were on the cover. On August 22"d, the CRA got a revised LOI from WPBR changing their first terms from $25K and $60K of advertising to $35K plus $70K in advertising as written. Or $55K in acquisition costs and $45K in advertising. BDH offered $30K and $70K in professional services over a 10-year period. Option two was $50K plus $40K if future development occurred with adjacent parcels, or $50K plus a $40K CRA Forgivable Second Mortgage for ten years depreciating at 10% per year, plus engineering services if future development occurs with adjacent parcels. Both entities are building the same size structure. Chair Grant thought based on the recent City Commission meeting that the property to the south on the corner is part of the City. He asked if the Board wanted to make a decision now because they could expand the parcel to a larger size and if the Board wanted one 2K square foot building or two, 1 K square foot buildings. He wanted to wait and see if and when the City obtains the property to the south. Board Member Hay, commented the businesses are Boynton based and he supported, if they have the opportunity to see about the building next to it because 1,200 square feet is not big. The two businesses are ideal for the properties. He wanted to wait and see for have the opportunity to have two more buildings in the City. Chair Grant noted the downside is if they wait too long, they may have to find another location. 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 8, 2020 Vice Chair Penserga wanted staff's input. Mr. Simon believed there was a way a building could be constructed with a reciprocal easement. The two buildings would abut together, but have individual ownership. If the Board was leaning to development of both lots, with these two entities, he thought 30 days to work with the entities would be appropriate. Chair Grant opened public comment. Deris Bardales commented he would like the other business to be their neighbor. Mr. Bardales explained he was a CRA resident for 17 years and President of BDH Consulting Group since 2012. They expressed interest in the property a year prior to submitting the LOI. They would like the property to expand business and hire more local employees. They are in process of becoming a HUBZone certified business with the Small Business Administration, which is a federal program for small companies that operate and employ people in historic or underutilized business zones. Samuel Rogatinsky requested confirmation City could take the corner piece and when they will know if the City moves forward with a foreclosure on it. Chair Grant hoped to have the answer by the next CRA meeting. Mr. Rogatinsky was amenable to wait for the answer. The City moved forward with a foreclosure and outstanding lien. The City Attorney would have to provide information. Chair Grant wanted to work with both parties to situate them both there. Mr. Simon thought, other than how the two buildings could be aligned, the timing of the second lot they do not own, trails to the lot they do own. He thought the two parties should meet before the next meeting in order for it to work. There is only one way to build on the lot. They should do something jointly, it would have to be done all together. Chair Grant wanted option two on both LOI and have the CRA Board to work with the City to move forward with those two lots and each business will determine which business will be on the north lot and the south lot. He hoped by the next meeting, they can have a Purchase and Sale agreement to be on both locations. Attorney Duhy suggested the Board direct staff to negotiate with both bidders on whether an alternate arrangement other than what was proposed can be arranged and table the item until next month and give an update. She noted because the CRA does not own the foreclosed property, they cannot issue a NOI to dispose, which would add more time to the process which was not necessary for the existing building. The motion was to table the item and direct staff to discuss alternate options and bring it back next month. Mr. Simon asked if the Board could decide which option they would like discussed while tabled, as they would choose a purchase option. Chair Grant liked option two for both. Board Member Romelus wanted both parties to converse with each other. Mr. Rogatinsky commented if the foreclosure takes longer, this will stall. Chair Grant explained it was already agreed the City would accept the property 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 8, 2020 in lieu of pursuing foreclosure. Board Member Hay asked Mr. Rogatinsky about his time constraints and learned he has a year and four months left on his current lease. Chair Grant asked for a motion to table to next meeting and staff to discuss with the applicants and the City disposal of the properties. Motion Board Members Romelus and Hay so moved simultaneously. Vice Chair Penserga seconded the motion. The motion unanimously passed. G. Consideration of a Waiver to Provide a Flex Space for a New Neighborhood Officer Program Office and Community Space in the Ocean Breeze East Project Mr. Simon explained this item is consideration of the NOP office. The CRA Board entered into an agreement with Centennial Management that space would be provided for the NOP office. When the agreement was negotiated, there was a different police chief and they did not have an RFP and successful RFP response for the MLK Jr. Boulevard Corridor as they do now. The new Chief, sent a letter suggesting the Board allow a waiver of the condition to provide the space at Ocean Breeze East, and if so, the MLK Jr. Corridor would absorb the space into the 8,500 feet of commercial. Centennial would not have to provide an office. Chief Gregory explained an NOP Office would be more effective on MLK Jr. Boulevard. They wanted to make it more accessible to the community and integrate better into the development. Chair Grant asked what Centennial planned to do with the space. He noted they would then only have 6K square feet of retail. Mr. Simon explained the amount of space for the NOP is an issue between the CRA and the NOP. Space in the new location could be negotiated to a space that works for both parties. This item would eliminate Centennial from the obligation to provide space. Mr. Simon explained there was no urgency to waive it except the CRA is trying to design the interior space at the Ocean Breeze East location. If they believe the other location was better, they can stop and negotiate with Centennial at a later date. Chair Grant wanted to discuss it at a later date, and see what Centennial would like to do with the location. They stated it is a residential property so commercial was not available. He thought it may limit the City if they may want another function. He asked if the City/CRA could explore all or a portion of the space for another use or what Centennial would use the space for and how they feel about moving into a new location on MILK Jr Boulevard. Vice Chair Penserga agreed. It could make for a larger community room, but he wanted to hear from Centennial. Motion 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 8, 2020 Vice Chair Penserga moved to table. Chair Grant requested the CRA not move forward with any design space. Board Member Hay seconded the motion. Board Member Romelus asked how this impacts the budget with the amount they had to commit for developing the office. Mr. Simon explained they would save money in the new building. The motion unanimously passed. H. MLK Jr. Boulevard Corridor Commercial Redevelopment and Affordable Multi-Family Rental Apartment Project Update Mr. Simon gave an update. They are working towards their underwriting timeline for the site plan and other conditions of approval to obtain funding from the State and several meetings with the City were held. Centennial is progressing. With the exception of the Bell's parcel, they would like to dovetail the close of Ocean Breeze East and use the same site and resources that built Ocean Breeze East and move it north to the MLK Jr. Corridor project. He noted the NOP office had already been discussed. Chair Grant noted based on CRA comments in July, the Board has designated future tax dollars to build more affordable homes and there is already $1 M for the MILK project. He wanted to work with the developer to help build wealth. There are other parcels on the east and north side that are not owned, and they can talk with the developer to try and build more along MLK Jr Boulevard. Chair Grant would like to approach them if the Board would like more land acquisition on MLK and use the funds in MLK Jr. budget to help businesses there. There were no comments. I. Consideration of the Economic Development Grant Program Guidelines and Applications for FY 2020 —2021 Ms. Nicklien requested the Board approve the guidelines and applications. Staff was seeking guidance about the program regarding whether to continue the 18-month time period or return to the 12-month reimbursement period. The 18-month program was established in April due to COVID. Staff recommends continuing to process grant reimbursements monthly versus quarterly and staff also clarified eligibility for convenience stores for fagade only improvements and security cameras. Both applications include information on the City's new Work Inclusion Business Partner program which is a free program for businesses to participate in demonstrating their commitment to the Americans with Disability Act. Chair Grant asked if hotels/motels could use Economic Development grants and learned they were eligible for Facade Improvement grants. Chair Grant wanted to move them up to tier one status. Hotels and Bed and Breakfast establishments provide funds from the bed tax. Vice Chair Penserga agreed with the reasoning. Ms. Nicklien pointed out they fall under the "Other" category as Tier Two and are eligible for 50% reimbursement up to the maximum of$25K. Motion 18 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 8, 2020 Board Member Hay seconded the motion. The motion unanimously passed. Board Member Romelus questioned why not just approve them in their tier. Mr. Simon explained each year they describe the program and tweak it. It could be changed. Board Member Romelus suggested making changes for auto shops and similar businesses to just be able to apply as part of the tiered program instead of on a conditional basis. Mr. Simon explained each year the grant guidelines are adjusted and they have no objections to including them. Board Member Romelus supported having auto services to be able to apply like everyone else. Chair Grant explained the Economic Development program was for new businesses, and was then changed to include existing businesses. When new businesses came, existing businesses needed to improve. When the program first started, it was very different than it is now and they can improve the types of businesses in the CRA. Chair Grant agreed to include them in the Tier Two businesses. The two changes were to move auto uses from the Board Approval Category and move Hotel/Motel into Tier One. Vice Chair Penserga asked for the rationale about categorizing businesses into the different tiers and if it was based on a multiplier effect or some other concept. Mr. Simon explained it was based on board discussion and because restaurants were not opening as much then as they were now. It was a way to incentivize a business to locate in Boynton rather than to another city. Restaurant buildouts are expensive. There was clarity on the motion to amend the auto uses and Hotel/Motel. As to the extension due to COVID, Chair Grant was amenable to another six-month extension after the initial 12-month period, but would want to ensure the businesses are doing well and that the landlord was not taking the CRA money while the business was struggling. Chair Grant wanted a presentation after the first year of what they could do better. Board Member Hay agreed. Attorney Duhy suggested approving the grants for up to 12 months with the possibility for making application for a six-motion extension at the discretion of the Board. Ms. Nicklien explained she spoke with Mr. Lansat who wants to purchase an existing business. He would be a new owner. Under the existing program, he would not qualify for'grants because existing businesses can only apply if they are expanding 50% of the current square footage or if they are being relocated due to redevelopment, which did not apply to him. If he wanted to make changes to the property, he could apply for property improvement grants, but under the current proposed rent grant, he is not eligible as an existing business. Chair Grant asked what would occur if he had a new business name with the same use. Ms. Nicklien did not know. Chair Grant thought it was the same. Ms. Nicklien explained the problem is someone could change the name of a business that has been in existence or they could sell it to themselves as an LLC. She did not think they could write the policy to address it. They could take an application and review it conditionally. Mr. Simon explained someone could buy a business and improve the exterior, but they would not receive rent reimbursement. Chair Grant wanted to speak 19 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 8, 2020 with Mr. Lansat, but did not think the program could be amended to accommodate his situation. Board Member Romelus asked if they would specify between bed and breakfasts and Airbnb and learned eligibility was based on a commercial location whereas an Airbnb is not. Motion Vice Chair Penserga moved to approve as amended. Board Member Hay seconded the motion. The motion unanimously passed. J. Discussion Regarding Prevailing Wage, Benefits and Apprenticeship Policies for CRA Procurement and Requests for Proposals Board Member Katz wanted to ensure they have a discussion, but suggested this item be tabled one more time and hear it at an earlier point in the meeting. Motion Board Member Romelus moved to table the item one more time. Board Member Hay seconded the motion. The motion unanimously passed. Chair Grant looked at the tax deed sales and stated there is a property in the CRA District at 412 SE 4th Street. He wanted to put that item on as New Business B if it does go to auction. Motion Chair Grant passed the gavel and so moved. Board Member Katz seconded the motion. The motion unanimously passed. 15. New Business A. Discussion Regarding 407 NE 1st Street Chair Grant disclosed the owner was a former client and former neighbor of his and he does not currently represent him in any legal matter. The former CRA Executive Director wanted to offer money for the above property. Mr. Simon explained the property has an aged wooden structure. Appraisal was done as the owner was interested in selling it and approached the CRA about it. It is not an opportunity buy, but from an overall district improvement perspective it was good. It is a good-sized lot, but it needs the lot next to it to be of use. The property appraised for $268K, but Mr. Simon did not make an offer. The subject property did not abut any other CRA property. The owner was satisfied with the appraised value. Board Member Hay supported acquiring it when they can. Board 20 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 8, 2020 Member Hay noted there are three or four other vacant parcels and thought they could consider pursing the property as it could be a strategic property. Vice Chair Penserga agreed. Motion Board Member Hay moved to acquire. Vice Chair Penserga seconded the motion for up to the appraised value. The motion unanimously passed. B. 412 SE 4th Street This property was appraised for $195K. Chair Grant noted it was unimproved. He suggested offering up to$200K as a maximum bid. Mr. Simon explained they have $250K in the account and it is an important property. Motion Chair Grant passed the gavel and so moved to acquire the property. Board Member Hay so moved for up to $250K. Board Member Katz seconded the motion. The motion unanimously passed. 16. CRA Advisory Board A. Pending Assignments 1. Review of Commercial Properties within Boynton Beach Boulevard Corridor within CRA Area B. New Assignments 17. Future Agenda Items A. Discussion and Consideration of Responses to the RFP/RFQ for the CRA Owned Properties located at NE 4th and NE 5th Avenue a.k.a. Cottage District B. Discussion and Consideration of a Letter of Intent from Ocean Avenue Residences and Shoppes, LLC for the CRA Owned Property Located at 115 N. Federal Highway C. Consideration of an Interlocal Agreement with the City of Boynton Beach for the Historic Woman's Club of Boynton Beach located at 1010 S. Federal Highway 21 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida September 8, 2020 D. Consideration of an Interlocal Agreement with the City of Boynton Beach for the Sara Sims Park Amphitheatre E. Discussion of a Lease to the City of Boynton Beach for the CRA Owned Property located at 209 N. Seacrest Boulevard Board Member Katz wanted to direct staff to contact Davis Camalier to see if they found a suitor for their property on Federal Highway. He wanted to know as soon as possible if they would be selling the property and wanted to see if there was something they could do related to what the CRA was doing at 115 N. Federal Highway. Board Member Romelus also wanted an update on the D'Almeida property. There were no objections to either request. 18. Adjournment Mr. McNally explained how the public could access the video. There being no further business, Chair Grant adjourned the meeting at 10:01 p.m. Catherine Cherry Minutes Specialist 22