Loading...
Minutes 12-08-20 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD ONLINE VIA THE GOTOWEBINAR PLATFORM BOYNTON BEACH, FLORIDA ON TUESDAY, DECEMBER 8, 2020, AT 5:30 P.M. PRESENT: Steven B. 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 L. Romelus, Board Member 1. Call to Order Chair Grant called the meeting to order at 5:30 p.m. Alan Karjalainen ITS Services, read a statement explaining how the meeting would proceed and how the public could participate. 2. Invocation The Invocation was given by Susan Oyer, followed by the members reciting the Pledge of Allegiance to the Flag. 3. Roll Call A quorum was present. 4. Agenda Approval A. Additions, Deletions, Corrections to the Agenda Board Member Katz asked to move Item 15.D before Item 15.A as there are a large number of interested individuals present. There were no objections. B. Adoption of Agenda Motion Board Member Hay moved to approve the Agenda as amended. Vice Chair Penserga seconded the motion. The motion unanimously passed. 5. Legal Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 Tara Duhy, CRA Legal Counsel, responded to a question posed at the last meeting regarding language in the Centennial Agreement. The Board had requested adding language prior to signing regarding additional funds. Section 19 of the agreement, which is the beginning of the funding option section, the first paragraph, last sentence was amended prior to signing, to add: "as part of its approval of the final budget, the CRA Board may, at its sole discretion, provide additional funding to purchaser to fund the addition of elements of the project, which funding purchaser shall accept and integrate into the project budget so long as the same does not affect purchaser's award of any state or federal funding." Chair Grant asked if the Board moved to provide additional funding to Centennial. Mr. Simon responded they did, but it was not an amount that was specifically identified in that discussion, but that they would come back with the cost of the items the Board wanted to include and where it would come from. Chair Grant commented the Board was dealing with the commercial aspect of the project. Attorney Duhy explained Section 20 was added and it called for a separate agreement to address those issues. Chair Grant requested Attorney Duhy apprise the Board of any legislative changes in light of the new legislature that was inaugurated. Attorney Duhy agreed. 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 Vice Chair Penserga disclosed he spoke to all parties involved in the 115 N. Federal Highway property, which was Item 15.D on the agenda. He spoke with the applicants and owners of properties in the surrounding areas including Davis Camalier and Harvey Oyer. Board Member Romelus spoke to Harvey Oyer, Davis Camalier, Bill Morrison and his team in the past. Board Member Hay spoke with Attorney Bonnie Miskel on the project. Board Member Katz spoke with a number of representatives from the various Letters of Intent (LOI) submissions for the 115 N. Federal Highway property, including Davis Camaleir, Harvey Oyer, Bill Morris and a representative from Black Onyx. Chair Grant disclosed he spoke with Tim Collins and Black Onyx, Davis Camalier and Harvey Oyer. On prior occasions, he spoke with Bradley Miller, Carl Van Arnem and Bill Morris regarding their initial LOI. 7. Announcements and Awards None. 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 Chair Grant asked if staff did anything with the Boynton Bucks program and learned it would be discussed later in the meeting. 8. Information Only A. Public Comment Log B. Public Relations Articles Associated with the CRA 9. Public Comments Susan Oyer, 140 SE 27th Way, stated the holiday lights were stunning and the City and CRA exceeded expectations. Residents wanted beautification and the Avenue looks beautiful and elegant. When she drives by in the evening, she notices scores of people strolling and taking pictures. Kim Kelly, 529 E. Ocean Avenue, thanked the Board for the promotion along Ocean Avenue, which she appreciated. She apologized for some derogatory social media posts issued by the public, but assured the Board the Ocean Avenue businesses appreciated the Board's efforts. She announced the formation of the Downtown Business Coalition for a Brighter and Better Boynton Beach. The group is comprised of about 15 Ocean Avenue businesses and was growing. They held their first meeting on December 1st and discussion centered around area development, safety, lighting, cross promotions, available marketing tools and grants, and a program by Junior Achievement to teach kids how to run a business. She contacted David Scott and John Durgan to help learn about economic development and to use City resources to create a strong businesses district. The next meeting is Monday, January 4th at Hurricane Alley, and she invited the City and CRA staff to attend and looked forward to their assistance. Board Member Hay asked about the businesses limited to Ocean Avenue and learned they encouraged City residents concerned about the downtown and surrounding businesses anywhere in the CRA District to join. Board Member Romelus asked if they will make the meetings virtual and learned they would. Board Members Romelus and Hay were interested in attending. No one else came forward. 10. CRA Advisory Board A. CRA Advisory Board Meeting Minutes - November 5, 2020 B. Pending Assignments 1. Review of Commercial Properties within Boynton Beach Boulevard Corridor within CRA Area (TABLED) 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 Mr. Simon advised this item was tabled in light of reviewing the lengthy RFP responses for Cottage District. He thought the report would be ready in January or February. C. Reports on Pending Assignments 11. Consent Agenda A. CRA Financial Report Period Ending November 30, 2020 B. Approval of CRA Board Meeting Minutes - November 10, 2020 C. Approval of the Second Amendment to the Purchase and Development Agreement between the CRA and BZ Woods Properties, LLC aka South Florida Marine D. Approval of Commercial Rent Reimbursement Grant Program in the Amount of $21 ,000 for N&D Cafes, LLC d/b/a Tropical Smoothie Cafe located at 512 E. Woolbright Road E. Approval of Commercial Property Improvement Grant Program in the Amount of $50,000 for N&D Cafes, LLC d/b/a Tropical Smoothie Cafe located at 512 E. Woolbright Road F. Approval of Commercial Rent Reimbursement Grant Program in the Amount of $15,000 for Oak Mt. LLC d/b/a ApexNetwork Physical Therapy #42 located at 906 S. Federal Highway Motion Board Member Katz moved to approve the Consent Agenda. Board Member Hay seconded the motion. The motion unanimously passed. 12. Pulled Consent Agenda Items 13. CRA Projects in Progress A. CRA Economic & Business Development Grant Program Update Bonnie Nicklien, CRA Grants and Projects Manager, explained after tonight's approvals for the program, there will be a balance of $291 ,231 in the line item. A list of the businesses that received their Business Tax Receipt in the CRA District was included. B. Marketing, Business Promotions, and Social Media Update 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 Rene Roberts, CRA Social Media and Communications Specialist, reviewed their social media initiatives. A list of social media posts from last month were viewed, including those highlighting some CRA businesses. The Bon Appetite Boynton Beach Campaign was launched to highlight six Boynton Beach restaurants and mixologists, which the public was invited to pick up or dine in. The prize at the end of the campaign will be valued at $150 Boynton Beach Bucks. Mercedes Coppins, Business Promotions and Events Manager, printed additional copies of the Like a Local Business Guide that was distributed to the Chamber of Commerce and will be distributed in City facilities such as City Hall and the Cultural Center. Print advertising, featuring space at the Marina and transient docking, was also published in several publications. In November, the CRA published its first blog in a five- part series featuring 17 business and artists located in the Industrial Craft District with contact information to encourage the public to shop local. They also published a blog to provide a complete overview of the Bon Appetite Boynton Beach campaign. Information was included on each of the six participating businesses, how to win one of six prizes, as well as a digital cookbook and a selection of Boynton Beach Bucks promotional vouchers for each participating restaurant. Boynton Beach Bucks is a promotional campaign in 20/21 to encourage patronage of CRA businesses. It has different tiers and different contacts. One is the Bon Appetite campaign. Social media followers enter a drawing to win promotional vouchers to each business. There are six businesses that offer $25 vouchers that can be redeemed towards a purchase. Board Member Romelus hoped business owners would capitalize on the program. Ms. Coppins reported all were excited about it. Board Member Romelus requested a short summary of the program be sent to her. Ms. Coppin agreed and offered to contact any businesses Board Member Romelus thought may be interested in the program. 14. Public Hearing 15. Old Business (Item D heard out of order) D. Discussion and Consideration of Letters of Intent to Purchase the CRA owned Property Located at 115 N. Federal Highway Mr. Simon explained on August 4 2020, the CRA received its first Letter of Intent (LOI) for the property at 115 N Federal Highway. It was presented to the Board at the August 11th meeting and a lengthy discussion ensued between the Board and the proposer which was Ocean Avenue Residences and Shops LLC regarding the project. It was decided the Board would issue a 90-day public notice of their Intent to Dispose, which was 60 days longer then legally required, and it would alert other members of the development community that the property was available and there was interest in 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 disposing of the property. The Public Notice period ended November 16th. Prior to the November meeting, staff had not received any other written LOIs, but after the CRA November meeting, staff received four additional LOIs as follows: on November 9th, the CRA received a letter from E2L Real Estate Solutions, LLC; November 16th from D&H 2 LLC; on November 18th, the CRA received a letter from Black Onyx Capital LLC; and on November 30th, received a letter from 209 N Federal LLC. The Unsolicited Letter of Intent Policy is that if, during the public notice period, a second LOI is received, the Board could determine options, consider an RFP, accept one of the LOIs and move to negotiation, or reject all LOIs presented during the public notice time period. Mr. Simon advised this was the policy the Board established, but they do not have to follow it. The options are since the Board received information from other parties, staff can discuss an RFP or they assist the Board in the analysis of these LOIs. Chair Grant asked if they should issue an RFQ to get the best development team rather than the best development project, so the Board will have more of a say of what is built as would the residents and businesses. Mr. Simon explained with most RFPs, unless it is a straight up construction project, staff qualifies it in a broader sense as an RFP for all vocations. The Board is notifying the development community of the Board's intent to dispose and in what they would like to see return in the form of a proposal but also asking for qualifications that would not be contained in a LOI, which staff could accommodate. Attorney Duhy explained it was up to the Board how much or how little direction to give in the RFP. It could ask for developer qualifications or describe elements of the project. The Board could request all types of information about what they want people to respond to. Board Member Katz agreed. He was not comfortable subjectively picking just one proposer. The City has not laid eyes on some of the proposals and he would not mind having City input. It is a CRA project and Planning and Development would be involved. He requested tabling the item to the January meeting so they can provide guidance to CRA staff for their expertise in crafting an RFP or RFQ. He wanted to formalize the process and offered a motion to table to January with the express plan. Attorney Duhy explained the agenda item is about what to do with the LOI. She understood the Board was rejecting the LOI and directing staff to bring back a concept to go to RFP in February. If so, there were two separate items. Board Member Katz agreed and suggested targeting the January or February meeting for staff to provide input. Chair Grant thought, because they got so many LOIs, it would be prudent to reject them all, and give direction to CRA staff to work with City and County staff to determine what the City and County would want for this area. He thought they should get a report and then issue an RFP so their partners would know what to look for. They can contact the Downtown Business Coalition for a Better and Brighter Boynton Beach. This is a bookend to the Town Square project. He did not feel there was a rush. They will have 39 new parking spaces at the temporary Library site and he was comfortable 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 discussing this in 2021 to determine what to do with the parcel knowing if they decide in the spring, they will know what will happen by the end of 2021. Chair Grant requested a motion to reject all of the LOIs. Board Member Katz agreed with Chair Grant pending further Board input. He agreed with input and collaboration with the City, but emphasized when the City gets involved, they will need to understand it is a CRA project with the Executive Director taking the lead. Vice Chair Penserga agreed. It is a strategic intersection and he had no objection delaying the item to get the best possible project. He wanted all to be mindful of the property across the street and he would support if there was a way for them to be part of the growth and build a complex of buildings. The development would be a beacon. Board Member Romelus agreed with all comments. Board Member Hay agreed, but had mixed emotions. He wanted to ensure they get it right and thought February would be a better time as there are several parties interested in the project including Ms. Kelly's group. Mr. Simon thought February would be a good meeting to have a formal discussion. Meanwhile staff will gather information, review the elements of the RFP/RFQ and not have a skeleton document to be released at the March meeting. Staff could provide an update at the January meeting. Chair Grant opened Public Comment. Ms. Oyer looked over the project and was surprised how wonderful the proposals were and thought the Board should look at combining some of the elements. They have a food desert which should be incorporated. E2L has a pathway kind of system similar to what you see in Europe, incorporating and renovating old buildings. She was blown away by the Black Onyx concept and the attraction it would bring to the City. She would combine them all. She announced those she spoke to indicated they did not want more housing, they need jobs. She advised they do not have a gift store. She thought all the projects were great. Ms. Kelly commented she has been a strong voice for the property at 115 N Federal Highway, and she was speechless. She liked where the conversation was going and announced a lot of people are interested in the property. She thought a few months delay was fine. As for the RFP/RFQ they look forward to meeting with them and she appreciated the Board not making hasty decisions. No one else came forward. 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 Chair Grant requested a motion to reject all LOIs and direct staff to partner with the City and County to determine any government needs associated with the project at that site. Motion Board Member Hay so moved. Vice Chair Penserga seconded the motion. The motion unanimously passed. Chair Grant thanked all who submitted LOIs. It was noted there was a comment received by Phillip Lewis who wrote he would like to see more housing. A. Discussion and Consideration of the Responses to the RFP/RFQ for the Cottage District Infill Housing Redevelopment Project Development Proposals Mr. Simon provided the history of the properties. He noted this was the CRA's sixth RFP for the property and five proposals were received by the deadline. The CRA Advisory Board reviewed all the proposals. It was noted Fox Ridge Capital withdrew their proposal and they praised their competitors as they are all capable of building the project. The developers who responded most favorably to the RFP with the experience, capability and finances to complete the project were listed based on the date and time the Responses were received. Chair Grant wanted to presentations from the applicants. He noted they have the CRA Advisory Board recommendations and the Board could ask questions at the end of each presentation. Motion Board Member Hay moved to remove Fox Ridge Capital as a Respondent for the Cottage District. Vice Chair Penserga seconded the motion. The motion unanimously passed. Cottages at Seacrest - Boynton Beach Cottage District Development LLC. Farrell Tiller gave a presentation and explained they combined three firms for the project and have been working together for many years. Gary Smiegel gave an update since their presentation to the CRA Advisory Board. He reviewed prior projects in Riviera Beach. They partnered with the Oyer family to obtain property for the project, thereby squaring off the property. They are self-financing the project and feel they can develop a project all can be proud of. Nicholis Heine reviewed the project elevations. A list of projects they developed in West Palm Beach was viewed as well as remodeling projects. He noted the development is close to Downtown Boynton Beach, the beaches 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 and 1-95. A site plan was viewed which included a tot lot and playground. They would like to incorporate a HALO program to beautify adjacent homes in the area. They will install solar panel lights on the exterior of the property to light the area and reduce the carbon footprint. He reviewed the different housing styles and floor plans. Chris Heine, Jr., reviewed the sales information. They have the experience to put the plans together. The pricing is well under 140% of the Low to Moderate Income category. They can discuss the site plan from design through layout. They handle print marketing and use mailers to the local community. He noted 70% of buyers are coming out of rentals and out of county residents due to very low interest rates; however, the development is pointed towards Boynton residents becoming homeowners. They want the homes to be affordable and high quality. They anticipate they will sell out as they break ground. Rates can change, but they are optimistic rates will remain low. Nick Heine reviewed the proforma and announced they are self-funding. It will be built and sold within two years. Mr. Tiller spoke about the economic impact and the software they use called In- plan for Simple TIF Calculations. Based on the $11.5 million project, they expect $1.4 million in TIF generated to the CRA in 10 years and just over $4M in TIF until it sunsets in 2044. They expect 127 construction jobs to be created and an economic impact of just under $20 million during construction. Tax generation is $2.2 million and more than $1 million in new net spending. The increased households will support local CRA businesses. As local builders, they strive to hire only local subs and builders and they are committed to maximizing local Boynton subs and labor. They will use a minimum of 10% local Boynton subs and work with CRA for specific job fairs for the project. They are a very local company and have the ability to move fast. They want to listen to the local community, are happy to bid and work on the project, and hope to work with the Board. Vice Chair Penserga asked about the Riviera Cove project, which was subsequently sold to DR Horton. They worked with Riviera Beach and the CRA to get the project approved and developed, and then they sold the project. Mr. Heine explained the worked very closely with DR Horton who was building the project and then they sold to them. They will not sell this project. The overall project was good for the City. Vice Chair Penserga inquired about the status of acquiring the Oyer property to square off the site and learned they have the option to purchase. Chair Grant noted if they purchased the Oyer property, the site plan may change and the Board may request final approval. He asked if there are subsequent adjacent property owners looking to sell to expand the project site, if they would be interested in developing those properties and learned they would. Board Member Hay asked if they purchased the Oyer property and they are not selected to develop the project, if they would sell it or hold on to it. Mr. Heine did not know. He advised if they were not awarded the project, they may not have interest in the Oyer property. Fox Ridge LLC was removed from presenting as they withdrew their application. 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 Azur Equities, LLC — Canary Village Frank Gotsman introduced Keturah Joseph, Dwayne Randolf, and Bradley Miller and explained they started with an unsolicited proposal. There would be 12 single- family homes, twenty-seven townhomes and over 10K square feet of public park. They just finalized an agreement with CRA in West Palm Beach on a five-acre property with 350 residents and 60K feet of retail. They are redeveloping the Town Center in Davie and four residential buildings and working with Miami Gardens redeveloping the entire 35-acre property next to city hall. They are also developing 120 townhomes with the Pompano CRA and provided a history of their building projects. The site plan they worked with was changed from a rental development to accommodate homeownership. For this project, they will try to have a Key West style. They added extra parking and a park on the property would be donated back to the City. The townhomes are 1 ,500 square feet with garages and patios. The street view of the homes was viewed. They would develop local partnerships and are already in the community. There will be job fairs and apprenticeships. Mr. Randolf, General Contractor at Randolf Construction Group, explained they are a local minority builder with 23 years of experience. They build multi and single-family homes on scattered sites in Palm Beach County and are currently building a two-story custom build not far from the new City Hall. Eighty percent of the subs are from Boynton Beach. Renovations are also with Boynton Beach subs. He grew up, works and worships in Boynton Beach. He would like to work with Azur and they believe in local employment and advancement, mentorship programs and they will use the opportunity to fortify the local Boynton work force. Mr. Gotsman explained they also work with community relations and with Keturah Joseph in Boynton Beach to ensure people are aware and have the opportunity to join and become homeowners. They want to involve local people and facilitate their ownerships. Ms. Joseph, Boynton Beach Faith Based CDC, explained they were founded in Boynton by local concerned citizens who wanted to improve the community. They started in 1999. They are the only affordable housing developer in Boynton Beach. She worked with the CRA and the City and they are finishing up a project by Poinciana Elementary School with Habitat for Humanity. They believe in the development and their concept of involving community residents. Their role will be to ensure Boynton Beach residents have access to those homes. They do not want gentrification. They provide intensive homebuyer education and they walk them through the down payment process. Chair Grant inquired if the firm has the financial ability to develop other parcels and learned it was a possibility. He was open to any properties that may become available while working on this project. Pulte Group 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 Andrew Maxey, Vice President, Pulte Homes, explained they are a local builder in Palm Beach County . They employ 120 people. He introduced his team: Aimee Carlson, Director of Land Planning, Brent Baker and Patrick Gonzales. . The management team has 60 years of real estate and homebuilding experience and a local team of consultants to navigate through the project. They engaged WGI, a full-service consulting firm that handled the Sara Sims Master Plan and Seacrest Corridor Utility project. Sophie Nelson and Lisa Adams, of the Pulte Team, will handle community outreach and local hiring They handled the same for the Town Square project. Mr. Maxey explained they are mostly a market builder, but they have handled some of the County's affordable housing developments. They made a commitment to be a leader and provide needed affordable housing; Mary Place, a new workforce housing project in partnership with the West Palm Beach Housing Authority. He advised they are targeting the lowest two income categories and will build homes all under $200K. They will have their first closing on the project early next year. Pulte pays all cash for acquisition and construction, so there will be no subsidies. They were not intending to use TIF, nor will they ask any future buyers to have any additional tax burden. Their project is offering to sell units in all four income categories. There will be 10 units sold for $166K. The median new home price for new homes is about $400K. They propose to pay about $452K for the property in two payments. The first payment of$200K at time of purchase and the balance will be in the form of a marketing fee. They have a commitment to hire locally and they already have existing relationships with local contractors. Aimee Carlson explained they created a plan after reviewing the CRA Plan, the RFP and the community feedback, which consisted of detached and attached single-family homes with a mix of one and two-story, fee-simple units. The streetscape from NE 1st and the proposed site plan was viewed, which included a park open to the public and a walking path. They will form a HOA and the park will be deeded to the City. The south side has detached single-family homes fronting NE 1st and NE 4th Avenue. There will be on-street parking on 4th Street with a new sidewalk on the perimeter of the building. There are a few parcels not included in the site. Their plan provides open space or a buffer, and based on research, the surrounding community wants development to be responsive to the community and to orient the units to the existing outside world. They were inspired by the CRA plan and have two different architectural styles, which are a Florida Mediterranean style and a Florida Coastal style. All homes will be energy efficient. The floor plans are consumer driven. The project budget is $8.4 million. It is a net zero profit project for Pulte. Their total revenue from sales will equal their costs. They are able to build the homes because they have market rate projects and they are fulfilling an obligation. Pulte will pay $450K to the CRA and $252K is paid on the back end. There will be a three percent marketing fee associated with each unit, which is a fee paid to the CRA for the marketing and sales of the property. Pulte will use all the marketing tools they have, but they want to partner with the CRA to attract buyers who fit the affordable housing AMI category. They will partner with Palm Beach County Housing and Economic Sustainability to vet 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 qualified buyers. The costs were viewed. They are not looking for tax impact fees, tax credits or subsidies. They will sell the units equally in all four income categories. They have a focus on local hiring and already have six subcontractors that are current Pulte vendors; two of them in the CRA. There will be a large percentage of contractors based in Boynton Beach and they will reach out to local minority-owned businesses to include them in the project. Theresa Adams explained they understand the City's commitment to community through their prior work in the City over the last three years and why they will have robust community engagement and outreach programs. They have developed a strong database of local partners, contractors and skilled and unskilled laborers. Their outreach efforts will consist of local Small Business Enterprises and Women and Minority Owned Businesses and broadcasting through various marketing tools. They will engage with local non-profits and churches to identify laborers and prospective buyers via community meetings to bridge any capacity deficits. Chair Grant asked what flexibility Pulte had to change their site plans if other properties were added. Mr. Maxey explained they can make a deal and incorporate the parcels into the plan. They have the flexibility to change the project and design. ACE Dev Group, Boynton Cottage Village. There was no one present to make a presentation. Chair Grant thought the project exceeded the current zoning of the Cottage District and expressed he liked to see all the options. Board Member Romelus commented if the last project did not fit the zoning they should not be considered. Chair Grant opened the floor to the public for non-applicants to make comments. He explained they usually rank the proposals 1, 2 3, and 4, and whoever has the lowest number is awarded. Attorney Duhy suggested having each board member discuss the proposals and after each Board Member has commented, they can make a motion. Board Member Romelus asked if the RFP/RFQ required the Respondents to make a presentation before the Board and learned they were all notified it was a process they would subject themselves to. All respondents were notified to attend and provided with the link and the agenda. Board Member Hay asked if the Respondent made a presentation to the CRA Advisory Board and learned they did. Their recommendation was contained on the agenda cover. ACE Development Group was not ranked in the top three as was Foxwood by the CRA, and perhaps why ACE was not present. Lois Smith liked the first presentation but noted there was no mention of the price of the homes and they mentioned a tax would be a financial burden. She asked who would be burdened with the tax. Her next question pertained to the HALO program 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 where they take nearby homes and upgrade them during redevelopment. She wanted to know more about the program and how much the HOA fees Pulte mentioned were and if they were monthly fees. Barbara Ready, 3001 Via Bay, thought the RFP was not clear whether they were looking for workforce or affordable housing. Ms. Ready thought workforce housing was better as those homeowners would be better able to financially contribute to the City's tax base and it was preferable to improve the City's image and attract new businesses to the downtown. She found the Boynton Beach Cottage District proposal to be the most beneficial for that neighborhood with its green space. The original intent of the CRA for the Cottage District was to embrace historic homes and she thought the photos were beautiful and the homes were more desirable. Board Member Romelus commented it bothered her when people try to pigeon hole people into thinking that affordable housing is better than workforce housing and thought it was prejudicial thinking. Affordable versus workforce housing was all housing, the only difference is where on the financial spectrum the applicants were. Chair Grant commented affordable housing means a lot of different things and commented they are all adjectives and people create their own perception of what they mean. The idea is that all people have access to homes. Board Member Romelus explained if she was wrong in her interpretation of what Chair Grant said, she would accept it, but she wanted to put her comments on the record. Chair Grant thanked each respondent for their presentation and thanked the CRA Advisory Board for their review. He wanted to consider the Advisory Board's top three candidates. The Boynton Beach Cottage District offered quite a bit and he was not as pleased with the other proposals because they did not offer two-story townhomes that would provide a greater house and tax base, which made the homes more affordable. He liked that they worked with adjacent property owners to secure more land and he was fine with subsidizing the development to make it affordable for the workforce. He liked Azur Equities, but he was not happy with the carport versus a garage. A garage is a multi-use space and they are used for storage as well as parking. He noted they were requesting funds from the CRA and he ranked them third. As to the Pulte homes, they have something they need regarding building workforce housing in Palm Beach County. They are giving the CRA the best price point for future residents because they are allowing all income categories to move into that location. He liked the design, but one concern was their flexibility working with adjacent property owners and the HALO program. Mr. Maxey explained the association would run the property and they would keep the rates as low as possible. He did not want to commit to a number, but the goal was to keep it under $100 a month. Chair Grant asked for pricing and tax information about the Boynton Beach Cottage District and the HALO program and learned the prices in the RFP ranged in the mid to high $200Ks. They meet the 140% Area Median Income 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 requirement, but they are flexible. They want to work with CRA to find a price point that works. He clarified there was no tax burden on the homeowner; the comment was about TIF. They would like to partner with the CRA for regarding the HALO program to make exterior improvements to surrounding homes. Chair Grant asked if they will have a homeowner's association. Nicholas Heine responded, originally, they did not propose a HOA, but they are flexible and whatever HOA fees there are, they could incorporate them into a normal payment. He also thought the HOA would create jobs. Mr. Tiller explained they did not propose a HOA because they looked at surrounding neighborhoods and they did not have one. They wanted to treat the project like the rest of the area. If the CRA wants a HOA, they can create one. Vice Chair Penserga agreed with the CRA Advisory Board and ranked the firms first to last as Pulte, the Boynton Beach Cottage District and then Azur. He liked Pulte Homes. Pulte does not require any CRA funding assistance, money or the land to be donated and they are paying above the appraised value, which would free up CRA funds for other projects, plus Pulte has experience in affordable housing. Board Member Romelus noted Azur and Pulte both have Sophia Nelson as a partner. It was explained the firms could have multiple partners. She ranked from first to last Azur, Boynton Beach Faith Based CDC as second and Pulte third. She thought there was more community involvement with Azur and they had a fixed price point. They have inclusion of the Boynton Beach Faith Based CDC and a local general contractor. She was comfortable with the price point, but would like to see it slightly lower. For the last 20 years, the property needed to be developed. She wanted an agency to build a quality project and do it well. The CRA Advisory Board ranked the top three as Pulte, the Cottage District and third was Azur. Board Member Hay ranked the Boynton Beach Cottage District as his first choice. He liked the design, what they built in Delray Beach, that they are pursuing additional property from the Oyer's, and that they are local and use a local workforce. His second choice was Pulte and third was Azur. He was concerned about irrigation and groundwater surface runoff, but liked the solar elements of the development and that they would use at least a 10% local workforce. Board Member Katz favored townhomes as they offered more space in the same footprint. He noted whoever is accepted does not have to do exactly what they said. He asked if the Boynton Beach Cottage District could incorporate townhouses in their plan. Nicholas Heine responded they were flexible for a one-story versus a two-story home. He thought a one-story home was easier and efficient, but was flexible. Board Member Katz announced he would rank the Cottage District as long as they are willing to incorporate two-story townhomes. He ranked Pulte second and Azur third. 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 Chair Grant thought all the developers would add benefits to the City. The main thing for his support with the Boynton Beach Cottage District was their willingness to work with property owners. They are fully self-financing, which will add a benefit. He agreed with Board Member Romelus and would like to work with TIF to improve the property as they only have one chance to build. Chair Grant explained the total ranking was the Cottage District scored 7, Pulte scored a 10 and Azur scored 13. The lowest score was the winner which was the Boynton Beach Cottage District. Chair Grant requested a motion to accept the rankings as stated subject to legal approval. Vice Chair Penserga asked about attachment 10. Mr. Simon commented in addition to the donation of the land, they requested half a million dollars and utility impact fee credits. Vice Chair Penserga asked how would they provide the funds. Mr. Simon explained the CRA Board in FY 20/21 allocated $385,325K for the Cottage District to assist with the project. The CRA would fund the project after the fact and made up for in the following year. It would come from TIF annual revenue. He also noted the CRA has no ability to offset utility impact fees. Motion Board Member Katz moved to approve. Board Member Hay seconded the motion. The motion passed 4-1 (Vice Chair Penserga dissenting.) Chair Grant requested that Mr. Simon, before the CRA negotiates a contract, to find out what the applicant was willing to change based on the Board's recommendation for two story townhomes and what they are doing with additional land from the Oyer's. Mr. Simon thought it was appropriate to provide an opportunity for the applicant to adjust their plans based on the Board's comments at the January or February meeting. Chair Grant recessed the meeting for a short break at 8:16 p.m. and reconvened the meeting at 8:22 p.m. B. Consideration of Letters of Intents for the CRA Owned Property located at 1102-1110 N. Federal Highway Thuy Shutt, Assistant CRA Director, gave a brief history of the properties as contained in the agenda item. A LOI was received from WPBR Radio who was interested in the property. A Notice of Intent to Dispose was issued, but a second LOI from BDH Consulting was received. A second adjacent parcel became available and WPBR and BDH Consulting worked together on a plan to construct a building with each firm to occupy half of the building; however, a third LOI from Fish Depot owner Tim Collins was received who was looking to relocate his restaurant to the site. A copy of their proposals were included in the agenda item. 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 Sam Rogatinsky representing WPBR and Deris Bardales, BDH Consulting Group, were present. The CRA learned $342,100K was the new appraised price for the properties. Mr. Collins offered $500K for both properties to convert the existing building to a café. It will be financed by a private investor and/or long-term SBA funding with CRA Grants for the initial improvements to the building. The project timeline was not indicated in his Letter of Interest. Since the last meeting, it was suggested, since both properties were available, that they bind the lots and build a 3K square foot building with a shared wall separating the units and have parking in the back, similar to a condominium building. Mr. Rogatinsky and Mr. Bardales met and agreed they should combine the land and construct a building. It was mentioned they met with a condominium lawyer since they have to file condominium documents, and with two architects and a general contractor. The condo association will be called the Boynton Beach Office Condominium. They presented a total value offer of $200K with $105K in cash and the remainder via in-kind services. The radio station will contribute $55K plus advertise trades for $45K, and BDH was $55K and professional services in the amount of $50K. The City or CRA can use their services in any way they want. Their listening community in Palm Beach County is vast and their station could help CRA District businesses and increase foot traffic and that was their offer to the CRA. The new entity has the cash on hand to close and complete the transaction immediately. Mr. Bardales explained they are further ahead with the proposed development and have preliminary engineering plans and they are available and welcome to meet with them. The plans meet zoning and engineering requirements, and should not take too long to be permitted through the City. They are looking for a place to continue their business in Boynton Beach. Mr. Rogatinsky had mentioned he will hire eight more people, and he is planning to do the same. He wants the office because he is pursuing federal certification called a Hot Zone Area within the CRA, which is historically unused. Part of the certification says two-thirds of the employees have to be Boynton Beach residents. He announced they can close in two weeks, then submit the permit application to the City. He thought the plans should be approved in three months and then move to construction. He has been in the City for 17 years. Board Member Romelus commented she was thoroughly impressed with the two applicants working together. Tim Collins, Fish Depot owner, explained they are currently in the building across the street at 1022 N. Federal Highway. He wanted to buy the building from the landlord, but the price they wanted was too high. They have been looking at the property for seven years and has been at his location for the same. They want to incorporate a fish market and café in the existing building across the street with a patio on the north side of the building back with a roof cover and outdoor seating area. He noted there is a food desert and the business would be a vibrant new property with hurricane impact windows and roof. The flower shop would provide parking. An SBA lender approached them and 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 they have to adjust their paperwork and business plan. There are two different contractors in his family who could bring in local subs. The Fish Market would have five employees and the café would have about five to seven employees. There was no timeline in his LOI because he was unsure how long it would take to go through the process. He would move at the end of his term with the landlord. He would like to keep the new location as close as possible and they would build something beautiful. They would only request grants for the indoor/outdoor improvements. He could provide an update at the end of January or at least by the February CRA meeting. Chair Grant noted the policy indicates when there are two LOI's, they are supposed to issue an RFP, but thought the small scale of the project did not warrant doing so. He noted one offer required substantial cash to purchase the building versus another offer that provides in kind services at 20% of what the other offer was. One can close in January, and the other can close in February. He thought the $500K offer was substantially more and would create more jobs. Mr. Simon requested clarification. The LOI from Mr. Collins specified an acquisition price of $500K, but the request for funding from the CRA was $250K to $300K. In the past, the Board looked at the net versus the purchase price. The estimate for $300K was the estimate to rehab the existing property. Mr. Collins was only requesting the standard grants from the CRA. The SBA Administration would provide funds for the purchase and renovation. They would lump it together and pay over a 25 to 27-year amortization period, which was fine. Board Member Katz supported the Fish Depot LOI because the business was an active use. Board Member Hay supported the two other businesses. He thought the marketing and in-kind services would really help the CRA businesses and liked the camaraderie created between the two businesses. Board Member Romelus agreed with Board Member Hay. The Fish Depot could find another location. Vice Chair Penserga agreed with Board Members Romelus and Hay and wanted to move forward with the initial applicant. Chair Grant thought more of the in-kind services offer was around $200K vs the Fish Depot $500K offer. If they sell the property at below market value, it does not help future sales. He wanted an extra $50K each for in-kind services. Board Member Romelus queried what guarantee or proforma from the Fish Depot showed they have the ability to pay $500K. Chair Grant responded both parties stated they would provide a proforma and stated they would if selected. He understood the majority of going with the initial party, but he felt Fish Depot was the best fit for the CRA. 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 Mr. Rogatinsky explained someone can offer $500K and attempt to obtain an SBA loan, but those loans take anywhere from six months to a year. He advised when attempting to purchase a building, it is an entirely different story. They can close on Monday with cash and within two weeks, they can provide proof of funds to construct the building from either a bank or investor. Mr. Collins explained the SBA loan was just one option for him. He was working with a large investor. He wants to buy the property for $200K and could do so in a week, but he would like to keep the Fish Depot in Boynton Beach. They will only be at that location for another six months and are trying to stay at the same intersection as the business has been there since 1992. Mr. Bardales advised he spoke with Mr. Rogatinsky and they both agreed they could offer another $50K each of in-kind services from WPBR and BDH Consulting if they can close the deal. Motion Board Member Romelus moved to accept the LOI from WPBR and BDH Consulting for an additional $50K of in-kind services each for a total of $100K each and whatever amount of hard cash for the LOI. Board Member Hay seconded the motion. The motion unanimously passed. C. Purchase and Development Agreement Status on Ocean One Boynton, LLC Attorney Duhy explained at the last meeting, an update was requested how the Board would move forward regarding this property in regard to the TIF agreement, Last year, the agreement would have terminated because completion of construction was not started in the appropriate time and the termination date was extended to January 15, 2020. The developer failed to commence construction of Phase I improvements and the agreement will terminate unless the Board takes other actions on January 15, 2020. The Purchase and the Development Agreement was not amended last year. The development timeline they are in calls for construction to have commenced on January 16, 2020. That has not occurred and per the agreement, commencement of the public plaza needs to comments on January 16, 2020. If the developer does not have a permit pulled and paid for by January 17th, the developer is in default Chair Grant thought all the members had spoken with Mr. Camalier and supported working with him on a new TIF agreement for the Boardwalk property as he mentioned the cost of the parking garage hindered him from building. As they move forward for the holiday season, they should renegotiate and indicate what they would like to see. He asked if the developer was still required to build the plaza in accordance with the special warranty deed if they obtained a permit and started excavating by January 16, 2021. Attorney Duhy explained if they received a building permit and met the terms and 18 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 definition of commencement of construction in paragraph 18.2 in the Purchase and Development agreement, which read, "The City has approved purchasers site plan and purchaser agreed to diligently and continuously pursue approval of all other necessary approvals for the first building permit has been issued for the development project, purchaser agrees to commence construction of the development project within two years from the effective date of the TIF agreement." When the first building permit is issued, purchaser agrees to diligently commence to proceed to completion of construction. She thought there was some language in the Agreement they would need to a bit more than getting a permit at the last moment and sticking a shovel in the ground. She thought commencement of the construction of the Plaza should start, per the agreement, January 16, 2021. Commencement of construction of the plaza has to commence January 16, 2021 . The Board extended the termination date of the TIF. The Purchase and Development Agreement was different. He suggested the CRA have a discussion with Mr. Camalier about what they feel is in the best interests of Boynton Beach. Chair Grant requested a motion for CRA staff to set up a meeting and at next meeting they discuss what they can do to work together on the Boardwalk and Ocean One properties to further development for the future. Attorney Duhy explained a motion was not necessary, but staff could be directed to contact the developer and let them know they should appear at the January 12, 2021 meeting. Board Member Romelus was unsure how productive the discussion would be five days before a breach may occur. She thought having a report submitted to the Board beforehand would be helpful. Chair Grant did not want to move forward in February with a default letter, or at the Tuesday meeting, give direction to Legal to issue a letter on January 18, 2021 . He wanted to speak to the developer and reach a new consensus. He noted the TIF agreement expires on January 16th. He thought a new TIF Agreement should be discussed or what to do, because there would not be a project without that agreement. He requested direction from CRA staff to renegotiate on the 12th otherwise there would be a default on the 18th. He thought there should be a group discussion. Board Member Romelus wanted a written status report delivered by Mr. Simon and Attorney Duhy at the T-minus 30-day mark rather than waiting until four days before the contract expires. Attorney Bonnie Miskel, representing the developer, explained they are happy to provide a report with a status update and to meet with staff to explain where they are and where they need to be so that by the 12th, they will have something to look at ahead of time. There was agreement Attorney Miskel will forward a report. Mr. Simon explained he was unsure if the Board was aware the developer was requesting an amendment to the Purchase and Development agreement and extension of the TIF. At the moment they do not have a request for those extensions, but was prepared to offer them. He thought it may be helpful if the developer indicated in writing 19 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 he is requesting the amendment or extension. Attorney Miskel explained they will provide a detailed summary of what they were requesting in their status update. D. Discussion and Consideration of Letters of Intent to Purchase the CRA owned Property Located at 115 N. Federal Highway (This item was discussed earlier in the meeting) 16. New Business A. Discussion and Consideration of a Tax Deed Sale for the Vacant Lot located at 514 NW 11th Avenue Mr. Simon explained the above property was identified by CRA staff as a potential property to acquire for affordable housing via a Tax Deed sale. The property currently has liens on it, and could be purchased for $6,112.96. The appraisal shows the property, which had a structure on it that was demolished, was valued at $27K as a vacant lot. There was confirmation from Habitat for Humanity that the lot was suitable for a home. As for the liens, he spoke with the City Manager and Adam Temple, Community Standards Director and learned a substantial amount of the liens could be reduced if the CRA purchased the property for affordable housing. The municipal lien of just under $10K must be paid plus the acquisition costs. When they establish the amount to bid, they have to put down 5%. The maximum bid amount decided on was $240K. He thought $40K to $50K was appropriate. Vice Chair Penserga agreed to a maximum cost of $50K. Motion Board Member Romelus moved to approve a maximum purchase price of $50K. Board Member Hay seconded the motion. The motion unanimously passed. Chair Grant thought there were lands available for sale on the Clerk and Comptroller's website. He advised he will forward the information to Mr. Simon to bring back to the next meeting. 17. Future Agenda Items Chair Grant thought there were lands available for sale on the Clerk and Comptroller's website. He advised he will forward the information to Mr. Simon to bring back to the next meeting. Chair Grant wanted a future agenda item and noted the City created its own Parking Department and they do not want private development to own parking garages because they would not be able to regulate them. He wanted the CRA Board to help create a parking authority and look at the parking at 115 to find a low user charge, such as $1.50 per 24 hours. He wanted to stop people from parking on the Florida East Coast (FEC) 20 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 property and asked for the Board's input. Board Member Romelus was okay to discuss it. Chair Grant thought, similar to the Palm Beach Parking Authority, in order for the City to generate funds, the CRA could partner with the City, through an ILA, to create a parking authority with a parking department to help generate funds to pay off a revenue bond that can be used for future mixed-use developments in the CRA that may require a parking garage. The conversation was to see if they are legally allowed to have an Interlocal Agreement with the City to have their parking department charge on their spaces. Vice Chair Penserga asked if the proposal could be used to fund multiple parking garages. Chair Grant responded it was. If they help the City generate revenue, they can obtain a revenue bond. Chair Grant thought if this was done incrementally at 115, and they charge $2, it was something the City and CRA would benefit from as they can market the location and help create valet parking. He thought it was something to add to the downtown if they have too many people coming, they would have to do something. Mr. Simon explained when the City rolled out their app, that discussion was had immediately. Board Member Romelus wanted to add a discussion creating some type of program or process to ensure, or at least create a priority for people who live in Boynton Beach, to have access to affordable housing. Chair Grant wanted to ensure there was no city or state law they would violate. Board Member Hay asked if Board Member Romelus was looking to add this to an RFP. She was unsure and thought they could explore different avenues. She wanted it to be part of the Cottage District. Board Member Hay did not want to add additional requirements after the fact. A. MLK Jr. Boulevard Corridor Commercial Redevelopment and Affordable Multi-Family Rental Apartment Project Update B. Discussion Regarding Prevailing Wage, Benefits and Apprenticeship Policies for CRA Procurement and Requests for Proposals C. Consideration of an Interlocal Agreement between the City and CRA for Funding Portions of Veteran's Park Parking Project D. Sara Sims Park Amphitheater Plans E. 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 18. Adjournment There was no further business before the Board. 21 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 8, 2020 Mr. Karjalainen explained how the public could access the video. The meeting was adjourned at 9:43 p.m. Lik.i_uu, (Li_onil Catherine Cherry Minutes Specialist 22