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Minutes 08-06-20 ti MINUTES OF THE CRAADVISORY BOARD MEETING WEBEX ONLINE MEETING 100 E. OCEAN AVENUE BOYNTON BEACH, FLORIDA 33435 HELD ON THURSDAY, AUGUST 6, 2020, AT 6:30 P.M. PRESENT: STAFF: Anthony Barber Michael Simon, CRA Executive Director Allan Hendricks Thuy Shutt, CRAAssistant Director Angela Cruz Theresa Utterback, CRA Dev. Svcs. Mgr. Thomas Devlin Bonnie Nicklien, Administrative Svcs. Golene Gordon Lisa Tayar, Prototype, Inc. Sharon Grcevic Aquannette Thomas ALSO PRESENT: Sergeant Diehl 1. Call to Order The meeting was called to order by Mr. Simon at 6:32 p.m. Ms. Nicklien read the WebX virtual meeting protocol into the record. 2. Roll Call Roll was called, and it was determined a quorum was present. All Board Members introduced themselves. [Item 4 taken out of order on the Agenda] 4. Nomination of Chair and Vice Chair Chair Nomination: Anthony Barber Vice Chair Nomination: Allan Hendricks In a voice vote, the nominations were accepted unanimously (7-0). 3. Agenda Approval A. Additions, Deletions, Corrections to the Agenda — None B. Adoption of Agenda Motion was made by Mr. Devlin, seconded by Ms. Cruz, to approve the Agenda. In a voice vote, the motion passed unanimously (7-0). 5. Public Comment — None Meeting Minutes CRA Advisory Board Boynton Beach, Florida August 6, 2020 6. Consent A. Approval of CRAAdvisory Board Meeting Minutes — September 5, 2019 Motion made by Ms. Cruz, seconded by Mr. Devlin, to approve the September 5, 2019, minutes. In a voice vote, the motion passed unanimously (7-0). 7. Assignments A. Pending Assignments 1 . None B. New Assignments 1. Review of Fiscal Year 2020-2021 Project Fund Budget Mr. Simon reviewed the handout of the CRA funding sources and uses: the General Fund; the Debt Service Fund; and the Project Fund. This year, the TIF revenue to the CRA this upcoming year is $14,852,192, which is up 6.5% over last year. $5,883,434 remains for the Board to allocate to current and upcoming projects, described as rollover balances; project fund allocations; and project line item allocations. The Board's task is to review the CRA recommendations and provide support of these numbers and how they are allocated or provide recommendations to alter those numbers if needed. Mr. Devlin clarified Line 1 that there is roughly a million dollars that didn't get spent this year, so is that rolled over to next year; is there any reason to believe that will actually be spent or could it be used for something else? Mr. Simon explained that line item: the year before last, the CRA did an RFP for properties on Martin Luther Kind Jr. Corridor (see solid yellow in map provided). That RFP was responded to by Centennial Management which is also the developer of Ocean Breeze East in North Seacrest. So the money that was in that line item was set aside to assist whichever developer was chosen in acquisition of other properties and public improvements. $627,000 was taken out of that number which was higher by that exact amount to honor an agreement with Florida Housing Finance Corporation for a local government match. The second line of the project funds spread sheet shows this action of $625,750. Until the Board met, that first line was $1 .6 million, so it was adjusted to reflect the local government match. The CRA has obligated itself to help the developer carry the cost of the commercial, explaining that there will be a development of 123 affordable units and about eight thousand eighty-five hundred square feet of commercial on the north side of Martin Luther King. The units are being split between the south side and that north side. Mr. Simon further explained the criteria for this development to help offset its costs. Ms. Gordon had some questions on how much workforce housing can be realized for the allotted $385,000; or could more funds be allocated for that. 2 Meeting Minutes CRA Advisory Board Boynton Beach, Florida August 6, 2020 Mr. Simon explained the boundaries (see map) of the Cottage District, multiple pieces of property the CRA purchased over time. This project seeks a developer to combine the individual pieces into one large mass and then building individual homes or townhouses for about 32 to 40 units of ownership and 250 units of rental; further opportunity for home ownership would be a couple of blocks away. The $385,000 is for utility improvements needed on NE 4th, 5th, site improvements, streetlights, sidewalks and other things to be offered as assistance to the developer for overall development of the site. Chair Barber had some further questions on the map; Mr. Simon said the "green line" would be "new money," and explained how that funding delineation works. Regarding the amphitheater, the funds allocated are to enhance the stage, make it higher and put a back wall or screening to create more of a "backstage" effect. $36,000-$50,000 could get the job done. More detail can be provided at the next meeting if desired. Ms. Gordon asked about business promotion and events assistance projects. Mr. Simon referenced such events as "Rock the Plaza" and "Pirate Fest" where events occur across the five plazas in the CRA district. Such funding does not go directly to the businesses, but is used for marketing to draw participants to the business. Covid-19 phase mandates have affected these metrics, dropping the budgets almost in half; the task is to come up with a budget "as if" able to do the events. If unused, will roll over to next year. Any gathering of 25-150 persons per event has to be approved by the Governor and then managed accordingly for social distancing. In about three weeks, business assistance grants totaling over a million dollars were made to over 100 businesses within the CRA. Chair Barber asked for clarification if line items would be business side versus promotion side. Mr. Simon showed that everything CRA does is a business promotion (perhaps the word event is confusing here). Discussion ensued on various scenarios and business proposals received over recent years; Mr. Simon said not all proposals/RFPs are financially feasible or advantageous to the CRA. Reference was made to items later in the Agenda. Motion made by Ms. Gordon, seconded by Mr. Devlin, to approve Assignment 7.B.1. In a voice vote, the motion passed unanimously (7-0). Discussion of Motion: Mr. Devlin noted the previous approval was for the entire list; however, from a conversation with Ms. Nicklien, it is overspent by $827000; should some kind of adjustment needs to be made. Mr. Simon said a recommendation can be made on what to get rid of or leave it up to the CRA; next month the Board will have made some adjustment that will zero it out. Discussion ensued on how this is accomplished; the original motion will stand. 2. Review of Terms for an RFP/RFQ for the CRA Owned Properties located at NE 4t" and NE 5t"Avenue, a.k.a. Cottage District 3 Meeting Minutes CRA Advisory Board Boynton Beach, Florida August 6, 2020 Mr. Simon showed an aerial depiction of the district development site stating everything inside the red box is owned by the CRA; only two properties plus the northwest corner that are not owned. The district is 4.3 acres, a block and a half in width, wider than other blocks in the area. An RFP is being sent out. There are three developers who have provided letters of interest; one wanted to build townhouses only, another wanted to build 28 single-family detached homes, and the third wanted to build a senior-affordable product somewhere between 60 and 80 units surrounded by houses. The plan currently calls for single family attached or detached, but no rental, single family, no senior. The plan can be changed. The Board is looking for input on whether they should stay with ownership housing only or venture into some type of hybrid. Mr. Devlin asked if "senior" means they don't own it? Mr. Simon said, yes, it's senior rentals, affordable rental, similar to what is being built at Ocean Breeze East and MLK (very low, 30% to 60% of median for Palm Beach County), then around it would be the houses. Mr. Devlin noted the proximity to the senior center and would not mind considering senior housing. Ms. Cruz would like to consider home ownership. Lately there has been a lot of rental properties construction and not enough opportunities for home ownership. Perhaps senior home ownership could be subsidized in some way regardless of age. Discussion followed on defining home ownership regardless of age, income eligible, affordable workforce housing, and general homeownership, and proceeded into hybrid ideas for all ages combined with single family housing on the same site. This is hypothetical at the moment, especially as far as Planning & Zoning is concerned. Description of a larger map of the whole area with a breakdown of current projects pending followed. Ms. Grcevic noted that there are not enough products when it comes to multi- family townhomes and affordable single-family; younger families in the workforce could possibly get lower down payments instead of renting, especially in the east corridor. Chair Barber clarified if housing for 55+ is rentals; Mr. Simon said about 247 new units of multi-family, non-age restricted rentals are along MLK, which includes Ocean Breeze. Chair Barber felt a townhome community should be recommended in this area over single-family (which could be unable to accommodate $315,000 homes in the area). Townhomes could be priced at $130,000 to $170,000. This opinion met with agreement from several Board Members, maxing out at a market rate of $225,000 to $240,000. Mr. Hendricks was not sold on senior rentals and likes seeing some creative ideas; he is in agreement that townhomes sound right; there are lots of empty single-family homes and lots in the neighborhood; the proximity to Town Square is to be considered; and to foster well-designed principles so as not to build "the slums of tomorrow." A discussion of market rates in the area followed, settling 4 Meeting Minutes CRA Advisory Board Boynton Beach, Florida August 6, 2020 on what would constitute affordable workforce housing as established through HUD and Palm Beach County. Mr. Simon summarized the Board as being thus far in favor of ownership/ townhouses as most viable for the proposed District. Next question, when a developer wants to use the CRA's property, a majority of the time financial assistance is expected while not providing a lot of equity or "skin in the game" themselves. The CRA wants to know the Advisory Board's level of expectation: more favorable towards 1) developer putting money in as well as CRA money, or 2) developer asking for all CRA money and none from the developer. It may sound simple, but sometimes there will be three developers all seeking option 2 and the best of the three will have to be chosen. However, if there is a requirement, that a developer has to have some percentage of ownership in the project, that helps "weed out the chaff." Ms. Gordon would suggest that a developer also comes with some money on the table to meet the CRA which gives them more responsibility. Also, if the developer would take suggestions on the townhomes would be agreeable. Mr. Devlin agreed the developer should bring cash to the table, lending more credibility to their reputation, and reducing CRA investment so funds can be leveraged for other things. Chair Barber asked if the plan is to give the property to the developer. Mr. Simon said no, but that a parameter is needed or one of two things could occur, but primarily the land could be offered as the one and only incentive. However, this should not be offered at first, rather having the developer offer X for the property or stating the property is needed for $0 to make the development viable. As an example, on this site, no other offer rather than the one for mixed product offered anything for the land; this is not realistic, no one is out developing houses with zero investment in the land. Further examples of how this could progress were given. The CRA strives to be an equity partner and should be addressed as such from the beginning. The Board continued to discuss what should be considered towards making a motion and recommendations to the CRA. Ms. Thomas asked about the process of vetting the developer; Mr. Simon said CRA would examine corporate documents, tax returns, credit checks, criminal records, financial capability, resume of project managers and similar products. Chair Barber inquired regarding funding for project; Mr. Simon explained that attention will be given on how the deal will be put together as well as the pro forma sales price. Motion made by Ms. Gordon, seconded by Mr. Hendricks, to approve townhomes; home ownership (not rentals); sales price commensurate with affordable housing guidelines of the County; developer responsibilities to weigh in and bring cash on the table; offer 5 Meeting Minutes CRA Advisory Board Boynton Beach, Florida August 6, 2020 community improvement plan for surrounding and facing the Cottage District on 4th, Stn and 1 St. In a voice vote, the motion passed unanimously (7-0). 3. Review of Commercial Properties within Main Areas of the CRA Mr. Simon stated this is an interesting Board assignment and will require committee work, which is something new. Although there is no acquisition money available to the CRAAB, the assignment is to look at properties currently available in the three corridors (Boynton Beach, Federal Highway, and North Railroad & Third) and start identifying available properties and begin formulating priorities based on what's available today in each corridor. Three committees should be formed to start identifying properties for future moves or acquisitions of the CRA when funding becomes available. This project may take a month or two. Included in the assignment could be purchases and identifying purpose, such as potential land for development, tearing down, pocket parks, dog parks, etc. The Board could consider themselves a little development advisory committee. Chair Barber led the Members in quick questions and answers as to the criteria and scope of the recommendations of the parameters of the new committee as it develops. Mr. Simon said if the committee comes up with items the CRA should discuss, anything at this point can be considered; the CRA has been known to take on things no one else has interest in. After some cautioning on not overthinking the project and some brainstorming for what the committee could and should do, Mr. Simon summarized that the intent from the CRA was that the CRAAB get involved in research of a plan, properties, how they work together. The idea was for the Advisory Board to become more familiar with what the CRA actually does. Mr. Simon wished the assignment had been more specific to a task and apologized that the assignment wasn't more productive with an actual outcome; the Board continued contributions to what this assignment could be with more input from the CRA. The purpose was to have the CRAAB do the "work" that the Staff would usually do and as an exercise vote on which property was liked the most. Mr. Simon said that perhaps the CRA Board needs to reconsider this assignment as it is not realistic as it now stands and the discussion could be tabled for now while he talks to CRA for more direction. Motion made by Mr. Devlin, seconded by Ms. Gordon, to table this item. In a voice vote, the motion passed unanimously (7-0). Mr. Simon asked if it is of interest of the Board to have liaisons of CRAAB to attend CRA meetings and to attend City Commission meetings. Right now, the motivation of the members varies widely when it comes to attending CRA Board meetings. A way to be more involved, which may be what the last assignment was attempting, maybe this group could assign some members to 6 Meeting Minutes CRA Advisory Board Boynton Beach, Florida August 6, 2020 attend the CRA meeting or Commission meetings for a month and report back with two of the most important items. The suggestion was opened for a quick discussion. Motion made by Mr. Devlin, seconded by Ms. Grcevic, that CRA reconsider two CRAAB members be members of the CRA. In a voice vote, the motion passed unanimously (7- 0). Mr. Simon will talk directly to the Commissioners about this item. General discussion ensued. Mr. Hendricks voiced opinion that all members of CRAAB should be going to the meetings and that some liaisons be picked in the interim to attend City meetings and improve the efficiency of this Board. Mr. Simon stressed the importance of CRAAB members attending CRA board meetings whether assigned to do so or not. General consensus was in agreement. 8. Future Agenda Items - None 9. Adjournment Upon motion duly made and seconded, in a voice vote, the motion passed unanimously (7-0) and the meeting was adjourned at 8:37 p.m. Attachments: Proposed Fiscal Year 2020-2021 Project Fund Budget Terms for an RFP/RFQ for the CRA Properties in Cottage District [Minutes transcribed by M. Moore, Prototype, Inc.] 7