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Minutes 02-11-21 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD ONLINE VIA THE GOTOWEBINAR PLATFORM BOYNTON BEACH, FLORIDA ON TUESDAY, FEBRUARY 11, 2021, 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 Romelus, Board Member 1. Call to Order Chair Grant called the meeting to order at 5:30 p.m. 2. Invocation Chair Grant sang Lift Every Voice and Sing for the invocation. The members recited the Pledge to the Flag. 3. Roll Call Roll call was taken. A quorum was present. 4. Agenda Approval A. Additions, Deletions, Corrections to the Agenda B. Adoption of Agenda Motion Board Member Hay moved to approve the agenda. Board Member Katz seconded the motion for discussion. He requested a broad discussion about tax increments and some ideas about how to evolve and innovate some of the CRA's older practices as a future agenda item. Motion Board Member Hay moved to approve as amended. Vice Chair Penserga seconded the motion. The motion unanimously passed. Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 5. Legal A. Approval of the Restrictive Covenant for Phase II of the Seabourn Cove Tara Duhy, CRA Board Counsel, explained this was a request by the new owner of the Seabourn Cove project that was subject to two separate DIFA agreements in 2012. Those agreements were previously amended and assigned to Seabourn Cove LLC. In January of this year, Seabourn Cove was purchased and the DIFA's transferred to the new owners, Seabourn Cove Holdings, LLC. As part of the transaction, Restrictive Covenants have to be recorded. The Restrictive Covenants for Phase I were recorded, but not for Phase II. The DIFA for Phase II requires the CRA approve the Restrictive Covenants prior to recording. Attorney Duhy reviewed the Restrictive Covenants as contained in the agenda item and recommened approval. Chair Grant asked if they could ensure the requirements were being adhered to. Attorney Duhy responded they could, and it would require notification to the owners of the units of the inspection. The Restrictive Covenants automatically end on the termination of the DIFA. There are two years left on Phase I and three years left on Phase II. Motion Vice Chair Penserga moved to approve. Board Member Hay seconded the motion. The motion unanimously passed. Mr. Simon will keep the Board apprised and noted it is a requirement for the payment. Attorney Duhy will also monitor the DIFA deadline. Attorney Duhy noted there was no activity to report impacting CRA's under consideration in Tallahassee. 6. Informational Items and Disclosures by Board Members and CRA Staff: Board Member Katz spoke to Bonnie Miskel regarding Davis Camalier and his property on Federal Highway and Boynton Beach Boulevard. Board Member Hay had no disclosures. Board Member Romelus spoke with Ms. Miskel regarding the property on Federal Highway. Vice Chair Penserga also spoke to Ms. Miskel regarding Item 15D on the agenda. 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 Chair Grant spoke with Ms. Miskel today and Colin Groff, Assistant City Manager. He was talking with Mr. Simon and asked if there was an update on any City and CRA discussions about parking garages and learned there were none. A. Disclosure of Conflicts, Contacts, and Relationships for Items Presented to the CRA Board on Agenda 7. Announcements and Awards 8. Information Only A. Public Comment Log 9. Public Comments Mr. Karjalainen, ITS, explained how the meeting would proceed and how the public can participate. Chair Grant opened Public Comments. Tim Collins, 1022 N Federal Highway, owner of the Fish Depot Seafood Market, commented all should have received an email from him about the ABC Equipment Rental building, which did not close. He announced he was looking at the location to negotiate a lease as a temporary location for the fish market. He has to move by the end of the month. When he found out the closing did not occur, he sought alternatives and thought there were ways to negotiate a deal around a transaction in progress and inquired if the Board would. He identified a few other locations for his business, but neither of them were in Boynton Beach and he wanted to stay because he has a very strong client base. Mr. Collins advised he sent a letter seeking information to look at a lease negotiation when they closed, which should have been at the end of last month and the beginning of this month. Chair Grant explained the CRA does not yet own the property and it was subject to the current property owner and to the Board approving a temporary lease. At prior meetings, the Board agreed to work with Mr. Collins to help him remain in the CRA district. Chair Grant explained they would need a motion to discuss the matter under new business and any sort of lease would have to be approved next month. Mr. Collins queried if the Board could approve it at a City Commission meeting and learned they could not. Mr. Collins requested to see a standard lease, but the CRA does not have a standard lease. The Board would have to discuss it at tonight's meeting. 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 Motion Vice Chair Penserga moved to amend to agenda to add 16 A Discussion for Mr. Collins. Board Member Hay seconded the motion for discussion and commented he supported whatever the Board could do to assist Mr. Collins. Vote The motion unanimously passed. John O'Hara, 10960 Stafford Circle South, commented he is a member of the Downtown Business Coalition and they were told to attend this meeting regarding the property at 115 N Federal Highway and what they would like to see there. He understood there was a push for workforce housing, but the other Coalition members would like to see a boutique hotel or a seasonal business to frequent the local businesses on Ocean Avenue and the vicinity. Chair Grant noted the item was on the agenda as item 15 B Old Business and that the CRA is conducting a survey on the matter. Lois Smith, 122 NW 8th Avenue, noted there were metal rods put on the electrical poles near 122 NW 81h Avenue on the west side of Ocean Breeze. She was unsure if the CRA installed them, but was concerned if there would be any negative effects on the residents. She also commented she attended the meeting a few times requesting FPL to remove overgrowth on the electrical wires that feed into the homes and advised it was as if they are at a standstill. Ms. Smith explained she was shocked to see how high her water bill was last month. She compared it to the bill she got today and it was less. The bill was close to $30 plus dollars more. She thought it was a big jump for the residents in the Heart of Boynton and hoped someone could answer those questions. Chair Grant requested she take a picture of the rods on the pole and submit it to the City on its new app, which makes it easier for residents to report issues and ask questions, but he noted it was a City/FPL question. Regarding Ms. Smith's second question, he recommended she do the same. It was also a City of Boynton Beach and FPL question. He did comment after she spoke at the last meeting, he drove up NW 1St Street and saw the street lights were not working because the overgrowth blocked the light. Ms. Smith reported she still has the same issue and it has not been addressed for several months. Each time she calls FPL, they say they are in a meeting to try to address it, but there has been no change. He requested she send pictures through the app and suggested she call the Utility Department and ask for an explanation. Board Member Hay commented he did see FPL on NW 4th Street and on 31d Street cutting some limbs. He did not know if it was a lack of manpower, but thought perhaps FPL could expedite the matter or add manpower. He has seen them in the neighborhood. Ms. Smith noted this has been ongoing for months and there has been 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 no change. She was concerned a fire could start when it rains heavily or there is lightning. She hoped something would happen this time. No one else coming forward. Public Comments was closed. 10. CRA Advisory Board A. CRA Advisory Board Meeting Minutes - January 7, 2021 B. Pending Assignments 1. Review of Commercial Properties within Boynton Beach Boulevard Corridor within CRA Area a. Reports on Pending Assignments Mr. Simon had a request from the Advisory Board on their pending assignments, which was a review of commercial properties on the Boynton Beach Corridor. They asked for further clarification on what the CRA Board is expecting as they report so they can close out the item. Chair Grant explained the Advisory Board has three options: indicate the property is something to land bank or buy; indicate if the property is something that may have value in the future; or indicate if the property does not fit the CRA's mission. Mr. Simon requested clarification that those options would apply to any commercial or industrial properties for sale and learned it was and it would be excellent if they provide a reason. Motion Board Member Katz so moved. Vice Chair Penserga seconded the motion. The motion unanimously passed. 11. Consent Agenda A. CRA Financial Report Period Ending January 31, 2021 B. Approval of CRA Board Meeting Minutes - January 12, 2021 C. Approval of Second Amendment to the Granicus, LLC Agreement for Website Design, Build and Maintenance Services D. Consideration of the Revised Interlocal Agreement and the Purchase and Sale Agreement with the City of Boynton Beach for the Historic Woman's Club of Boynton Beach located at 1010 S. Federal Highway 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 12. Pulled Consent Agenda Items Chair pulled items C and D. C. Approval of Second Amendment to the Granicus, LLC Agreement for Website Design, Build and Maintenance Services Chair Grant commented when he goes to Catch Boynton.corn he is not automatically redirected to Boynton Beach CRA.com which needs to be fixed. He looked forward to working with them in the upcoming year and getting all the kinks out regarding the new site. Motion Board Member Hay moved to approve. Board Member Romelus seconded the motion. The motion unanimously passed. D. Consideration of the Revised Interlocal Agreement and the Purchase and Sale Agreement with the City of Boynton Beach for the Historic Woman's Club of Boynton Beach located at 1010 S. Federal Highway Chair Grant noted this Board had a second agreement with the Boynton Woman's Club. He wanted to ensure the City honors that agreement to use the property and ensure this organization can use it as well, especially since the CRA is giving them the building and paying them $750K over the next three years, that they do not charge the CRA. Thuy Shutt, Assistant Director, explained the ILA requires the previous and prior rental agreements be honored by the City. The City would have to look at the rental agreements before putting other restrictions in place and it would have to go back to the City. There is an agreement with the Boynton Woman's Club and they could add language the City shall honor all the bookings and agreements in place at the time they take possession of the property. Chair Grant asked about other organizations such as the Boynton Beach Garden Club and learned there was no request from the Garden Club, it was from the Historical Society. All that was booked to the time they turn over the land will be honored by the City and the City Commission would have to agree to any new agreements with the Boynton Women's Club. Motion Board Member Romelus moved to approve. Board Member Hay seconded the motion. The motion unanimously passed. 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 Motion Vice Chair Penserga moved to approve the remainder of the Consent Agenda. Board Member Hay seconded the motion. The motion unanimously passed. 13. CRA Projects in Progress A. Announcement of Website Redesign for Boynton Beach CRA.com Bonnie Nicklien, CRA Grants and Project Manager, explained in April 2020, the CRA entered into an agreement with Granicus to design and build a new website for the CRA that is inclusive, informative and visually appealing. Features include, rebranding to Boynton Beach CRA.com from the Catch Boynton website. The CRA will maintain the former domain, and any future searches will be redirected. Ms. Nicklien reviewed the website, which exceeded ADA standards. She thanked Debby Majors, Grants and ADA Coordinator, and Ted Goodenough, ADA Coordinator Assistant, for their assistance and feedback. The website also has accessibility profiles for blind users and various cognitive abilities for ADHD. They recreated a clean organized look with easy navigation. She noted the website has a public record request portal. Ms. Coppins gave overview for the Business Promotions and Events Tab. When the user selects an event tab, they are directed to the page which has photos and event highlights. She also highlighted the business directory, which they would like to grow and include all CRA District businesses. They highlight businesses each week. She noted all listings must be approved by staff and be in the CRA District. Ms. Nicklien further reviewed the Business and Development tab has business and housing grant applications, development opportunities, RFP's/RFQ's and the SMOP Program. Ms. Coppins reviewed the Boynton Harbor Marina tab and the Marina amenities as well as waterfront dining and recreational activities, with photos, listings and phone numbers of the businesses located there. Ms. Nicklien explained the BBCRA projects page shows completed projects, current and future projects and additional information. They have an interactive boundary map, Ms. Nicklien thanked Jennifer Marangos, Senior GIS Analyst, for her work on the map. Ms. Coppin announced marketing of the new website started this week and they will roll it out across social media this month. Board Member Hay thought it was awesome and commended staff. There are 240 businesses on the list the CRA maintains. Staff has been going door-to-door to District businesses to collect information. Mr. Simon thanked the staff, and particularly Ms. Nicklien and Ms. Coppins for their hard work on creation of the website. 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 B. Marketing, Business Promotions, and Social Media Update Renee Roberts, CRA Social Media and Communications Specialist, reviewed a PowerPoint presentation on their business social media marketing and business promotion efforts in January. Each week they try to share a post related to a prior media project. They published Promenade Park which has a Scenic Trail and the booking availability of the Historic Women's Club of Boynton Beach. Examples of posts to encourage the public to shop and dine locally were viewed. Banana Boat and a Valentine's Celebration on Ocean Plaza on February 13th was viewed. They also highlighted Guaca Go and the partnership between the Boynton Harbor Marina and Boynton Ice. Visuals of ads in the Coastal Angler were viewed. Ms. Coppins reviewed blogs and the newsletter. The newsletter had eight categories and the feature story answered frequently asked questions about the purpose of the CRA. The Redevelopment Section had an overview of the Cottage District. The hashtag Hit the Biz section highlighted five businesses. The newsletter also had promotions and availability about the Historic Woman's Club Boynton Beach, program information about social media outreach program (SMOP), the Boynton Beach Bucks promotion, the new website, the Affordable Workforce Housing Grant program and the Neighborhood Sign and Repair Grant program. In January, they posted the final blog for Bon Appetite, an overview of That's Amore and a recipe for their sauce. They had a blog to promote automotive and service providers in the industrial craft district with contact information. Twelve business applied for Boynton Beach Bucks programs. They identified how each business could benefit from the program, and the team met with.each owner last month to develop a campaign to promote their business. To-date, eight businesses have taken advantage of the promotions. C. Neighborhood Officer Program 4th Quarter Report for FY 2019-2020 and 1 st Quarter Report for FY 2020-2021 Sergeant Diehl, Boynton Beach Police Department, reviewed the fourth quarter 2020 report and first quarter of fiscal year 2021. He noted the fourth quarter was in the height of the pandemic. During that quarter, Officer Paramore was still on light duty and Officer Rivera held her own. They handled the Back to School event as much as they could with what they had. In the first quarter of 2021, it was Back to School on a limited scale, but they also facilitated the holidays and had more Shop with a Cop outings this year than prior years. The Secret Santa initiative they have was scaled back due to COVID. He noted for the fiscal 20/21 first quarter report, the pictures did not come through, which he agreed to provide. Moving forward, he introduced a new Community Service Officer assigned to the Neighborhood Officer Program, Emily Vasquez who is assigned to the CRA District. 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 Officer Vasquez stated she was seeking to give back as much as they can, have a presence and show they care and they are there for the people to do what they can to help them. She will work community policing at the1550 N Federal Highway office. Sergeant Diehl explained she is in the final weeks of training. 14. Public Hearing 15. Old Business A. Consideration of Fiscal Year 2020-2021 Budget Amendment for Unreserved Fund Balance Mr. Simon explained there is $445,561 available as they close out the Fiscal Year 2020, which are unused funds from that fiscal year they can move forward. He noted the Board had previously discussed the Veterans Park parking lot. Board Member Katz supported the staff recommendation, commenting the park is a gem and restoring or upgrading the parking lot is needed. Many of the veterans who go to the park are of a certain age. They need the parking and it could be a safety issue. He asked if the fund balance would handle all the parking upgrades. Mr. Simon responded these funds plus some funding the City has available would handle all the upgrades. Vice Chair Penserga agreed with Board Member Katz. He asked if there are any other patrons that would need the parking.lot or it would be just for the park. Mr. Simon explained it would be a City parking lot, like they have at the 115 N Federal and Town Square sites. Mr. Simon anticipated additional parking needs on the weekend for Fish Depot or any other member of the public to access shopping or just be used for overflow. It would be primarily for business in the area near Veterans Park. Chair Grant was at the park on February 3rd and did not see the need for additional parking. He asked if there would be a sidewalk constructed or people would have to walk on the road to get to Veterans Park. Mr. Simon thought they would have to cross at a pedestrian crosswalk and it would match up to the existing right-of-way height and dovetail into the sidewalk on the other side of the park. There would be lighting upgrades. Chair Grant did not think they needed to spend the funds on a parking lot when there is a parking garage across the street and that it was not the best use of the funds. He saw the parking lots on Quantum Boulevard and the City and developer tore down six acres of trees for a parking lot that will not be used, except maybe 10 times a year for events. He used that area for parking for the last eight years without any issue. Vice Chair Penserga asked where the gravel area was and if there any safety concerns for the seniors who use the park. Mr. Simon responded any time there is a lot used that is not improved, some would consider the uneven ground and mix of gravel less desirable than a paved parking lot. City staff has not provided them with any official safety concerns. It was more of a practical thought that a smooth walking surface is better than what currently exists. 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 Tim Collins, Fish Depot Bar and Grill agreed with Chair Grant. He thought covering the gravel with some sort of covering and lighting would be an improvement, improving some of the homelessness in the area, so that part would be a prudent use of the funds. Chair Grant thought lighting on NE 4th Street would be a better use. He favored spending funds in other areas of the City such as Galaxy Park, the pool on Ocean Avenue and NE 4th Street. He noted there are canopy trees there and he would not want to tear them down and replant them, taking decades to grow to the same amount tree canopy. Board Member Katz asked if the plan called for removal of trees or if they could work around them. Mr. Simon explained the plans showed their removal, but the CRA Board and/or City Commission could request a redesign to accommodate the trees. Chair Grant thought it made no sense to have exits and entrances that people have to walk across to get the sidewalk on the other street. He noted most people use the entrance on NE 3rd Street to get to that from Buds and CVS. The way it is currently designed is to maximize concrete, which he did not think is what they wanted for this location. Mr. Simon commented this was an exercise if the Board wants to spend money on parking for the site and then City staff can work on the design to accommodate the Board's concerns. Chair Grant wanted to have it in a new lighting projects within the CRA District line item. Chair Grant requested a motion to move the funds, in coordination with the City. There was no line item for City improvements, but the funds could be allocated for NE 4th Street improvementsNeterans Park area, or put it into site work and development and drawn on another project when identified. Motion Board Member Katz supported his original thoughts and made a motion, pending further preservation of trees and lighting, to allocate the funds for the purpose of the parking lot. The motion died for lack of a second. Motion Board Member Hay moved to create a line item the Executive Director spoke about and put funds in other areas of the CRA District. The motion is for lighting and streetscape improvements consistent with the CRA Redevelopment Plan. Vice Chair Penserga seconded the motion. The motion passed 4-1, (Board Member Katz dissenting.) Chair Grant requested the members forward their lighting priorities to Mr. Simon so he could work with the City. B. Discussion Regarding Prevailing Wage, Benefits and Apprenticeship 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 Policies for CRA Procurement and Requests for Proposals Attorney Duhy recalled at the request of Board Member Katz, they were to bring back information from other municipalities about prevailing wage programs and other items, for the Board to consider. The attachments had three options the Board could consider. Chair Grant noted the minimum wage would increase from $10 to $15 an hour. He thought the Board could include in its proposals that anyone looking for TIF or property from the CRA will pay workers a minimum wage of $15. He also suggested any apprenticeship programs required in any Request for Proposal (RFP) receiving TIF or lump sum funding could be considered as developers providing a community benefit by paying living wages and having apprenticeship opportunities on new City projects. He did not know what they could do for the Cottage District, but if the developer is requesting funding, the Board could request items in consideration for the funds they provide. Attorney Duhy explained there are usually term sheets that list items for the Board to consider when negotiating contracts for particular projects and sought to provide direction. Board Member Katz supported the first option because he did not want trained and skilled labor being paid minimum wages and prevailing wages are substantially higher. They might be paying trained or non-local subcontractors $15 now, but some of the prevailing wages for some trained iron workers or masons far exceeds minimum wage, and he wanted to have strong language with affordable or workforce housing provisions. He would not want anything about TIF in any policy or Resolution. His goal with the resolution was to force developers to pay appropriate wages because if they, as a CRA subsidizes a project, it means the developer is not paying appropriate wages: the CRA is. The developer has to acknowledge that they need to pay people what they are worth and not subcontract out and use less skilled and less valued labor. He wanted to go with the prevailing wage index for what the trades are worth on the free market. There are prevailing wage indices based on surveys of specific trades. Attorney Duhy included references so there is a definable prevailing wage for project workers. Chair Grant commented the reason why he favored subsidizing the developer was for housing to be attainable. Affordable housing projects are heavily subsidized by the State in order to offer rents for 30% to 60% median income earners. If they want developers to pay prevailing wages and not subsidize the development, costs increase. If costs increase, revenues increase commensurately, and the prices for rents for new construction development homeownership will increase. His thoughts regarding Boynton being a working community, was this was not an aspect of affordability which is 30% to 60% of the area median income. It was more for workforce which is 80% to 140% of the area median income. They can subsidize development to reduce costs 10% or 15%, and create the ability for the workforce community to achieve homeownership, and it is not something you can find elsewhere east of 1-95. 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 Chair Grant commented they do not have to use free CRA funds, but can subsidize similarly to Seabourn Cove to be environmentally friendly. He favored subsidizing any development for environmental, homeownership, and economic development reasons. The median income in the City is $53K, which is about 15% lower than Palm Beach County. In order to be competitive and have quality products, they have to subsidize it. He referenced 500 Ocean, Casa Costa, Marina Village, Seabourn Cove and a few others. The products were subsidized to decrease the market value to be attainable. Board Member Katz commented when they look at some of those deals and the fact that all of those projects were flipped or in the process, he did not know if there needed to be subsidies for some of the projects for items the CRA requires when the developer can sell the project for millions in profit in five to 10 years. In some instances, the new owners can still receive TIF funding carried over from the original developer upon sale and transfer of the property. He did not want to automatically subsidize and set a standard. He thought this topic would be part of a discussion at the next meeting. He did not want to put it in writing because then developers will come in and automatically expect TIF. Some of the projects constructed got TIF funding, they lie to get funding and then sell for massive amounts. Motion Chair Grant thought they should have a future discussion at the next meeting to get comparable evidence. He asked if Board Member Katz wanted, for a motion, a discussion for any CRA incentivized project with a minimum threshold. Attorney Duhy recommended as a motion, the first bullet could be framed as a policy in the terms mentioned, which would provide the Board flexibility without requiring setting parameters. They can establish a policy using that bullet or any of the bullets. Board Member Katz requested confirmation that by approving the first bullet, it would be mandatory to bring up a discussion item for any CRA funded project and it would be up to the Board to determine if the project crossed the threshold that would warrant funding. Vice Chair Penserga seconded the motion. He noted what other cities and counties were doing. West Palm Beach has a program in place. Construction contracts become void and no funds are released if construction contracts are not certified. They have to prove they pay their workers a prevailing wage, and they say what happens if a developer renege on the agreement. One mechanism to ensure the agreement is adhered to, is to not approve funding in one fell swoop and make payments instead. Attorney Duhy requested the motion be amended to add and include the ability for confirmation of payment of a living wage. 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 Motion Board Katz moved to include the provision as amended. Board Member Hay seconded the motion. The motion unanimously passed. Mr. Simon commented there are many ways to handle projects that are suitable and the Board could address them on a case-by-case basis. Board Member Katz asked if the way to move forward with the apprenticeship program was to set a specific minimum number of hours of the project that would require apprenticeships to be working. Vice Chair Penserga noted Broward County has an apprenticeship program. He asked if the county had its own apprenticeship program developers could avail themselves or if it was an apprenticeship program the developer has on their own. Attorney Duhy will get a summary of the program and email it to the Board Members. Vice Chair Penserga sought to find a good model. C. Update on Purchase and Development Agreement with Boynton Beach Cottage District Development, LLC for the Cottage District Infill Housing Redevelopment Project Mr. Simon explained the CRA staff met with City staff to discuss the site plan under the above RFP/RFQ. They took significant time taking the comments and adding them to the revisions. They have a scheduled pre-application meeting tomorrow with staff and the development team at 1 p.m. Staff would provide a more significant update at the March meeting. They did request a contract for part of the Oyer property. Chair Grant pointed out there is a property listed above appraised value and he wanted to know how the Board feels about purchasing it or helping the developer to purchase it. It will help with the flow and additional units in a townhouse type of format. If it is not included, the property would most likely become a rental property. Mr. Simon explained the property appraised in the low $200K and the owner listed it for $375K. He spoke with the owner. The property is rented and that is what she wants for the sale price. Chair Grant commented she will have to find a new homestead. The last time Chair Grant saw it listed, it was for$50K. He asked if the Board wanted to make an offer for the property and mentioned the CRA has over $500K in the line item. The last appraisal was done over a year. The asking price is easily $100K to $150K over value, he thought it was substantially over valued. Chair Grant requested the Board make an offer for $300K as he thought it was the final piece of the project. Board Member Hay supported the acquisition, but thought Mr. Simon was in a better position to negotiate a price. Chair Grant commented whatever offer is made should be the final offer. The Property Appraiser's Office says the house is valued of$89K and land at $30K, He thought the land value increased to $50K plus for similarly sized lots and location. It has a tear down house from the 1930s. Mr. Simon explained buying the land will not give them eight more units. It is a very small piece. 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 Chair Grant thought the property to the west surrounds it and he felt the value was about $150K last year. At that time, they could not agree on a price. Chair Grant thought the price of new construction for three-bedroom, two bath homes was about $275K, which he thought was fair. Board Member Hay agreed. Motion Board Member Hay so moved to set a purchase price for $275K. Board Member Katz seconded the motion. The motion unanimously passed. It will be the final offer from the CRA Board. D. Discussion of Status of Purchase and Development Agreement with Ocean One Boynton, LLC for the Ocean One Project Attorney Duhy explained this item was two-fold: the first item is a motion to confirm the expiration date and termination of the TIF Agreement and the first amendment to the agreement signed by the parties, which automatically expired January 21, 2021, which a motion would finalize. The second item is for the developer to commence construction of a public plaza on property purchased by Ocean One as part of the project. At the last meeting, the Board voted to waive compliance with the provision which expired to this meeting. The options are to waive compliance or instruct Attorney Duhy to notify the developer of their breach or give another option. Bonnie Miskel, on behalf of Davis Camalier, the property owner, approached staff to advise regarding the TERFA Agreement, he could not get his client and potential developer to a point to redevelop the site. They suggested allowing the TERFA to run out. Since the last meeting, they spoke with Mr. Simon and Mr. Groff and they want to redevelop the site in a way not contemplated by the TERFA. They approached City and CRA staff on the possibility of a City-funded parking garage her client would lease back for a number of years. Her client has a silent partner willing to come forward with it, but they wanted additional time to represent something economically viable. At the time, they looked for six-months. Since the conversation with Messrs. Simon and Groff, they are expecting a Letter of Interest (LOI), which would make redevelopment of the site possible. She has nothing to show or represent for the Board to consider. They want some additional time to set the terms and concept and present it to the Board. If acceptable, they would amend the site plan to get final approval of a project. Attorney Miskel advised they need 90 days to go to contract and have a concept plan with sufficient detail. There was a condition of the sale and purchase, which they would proceed with, but the developer would like to be able to come back in 90 days with something and she thought building a plaza only to demolish it later was not practical. 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 She requested a 90-day extension, at least for commencement of construction and $5K in consideration. Chair Grant had no objection to waiting the 90 days. Board Member Katz asked what the estimated cost was if the property owner had to comply with the existing provisions to develop a park. Ms. Miskel assumed it would be $1 OK to $20K and then to tear it out. Board Member Katz wanted to increase the contribution. The land was acquired for pennies basically and the reason the land was given to the developer may not be realized so he supported a higher amount such as $20K for an adjacent park or improvements in the area, and a few more months extension. Chair Grant asked if a donation to one of the Town Square projects would be acceptable. Board Member Katz was receptive to any uses that would benefit the public. Attorney Miskel explained if the Board would treat this as an arms-length transaction, she had a project that was a multi-million-dollar project where they were seeking an 18- month extension for $60K. For 90-days, she thought $20K was a significant cost given the value of the improvements are around $20K. If the Board's interest is a sum larger or equal to the value of the improvements, if they could consider some of them at some time, it would be proper. She noted Board Member Katz suggested he would be agreeable to that. She thought if the Board wants to grant an extension, they would request up to six months or sooner. Chair Grant commented the Board has to wait till the next meeting to receive an answer to the $20K and six-month consideration. There were no objections. Motion Chair Grant commented there were no objections to dissolving the TERFA Board Member Katz was fine with the $20K for a six-month extension given the property was conveyed for basically nothing and so moved. Ms. Miskel requested clarification. Attorney Duhy explained the offer was a six-month extension for $20K, and get a response or counter offer at the March meeting. Chair Grant clarified it was for the public good and they do have naming rights available for the Town Square project as well. Vote Vice Chair Penserga seconded the motion. The motion unanimously passed. 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 Motion Board Member Katz moved to confirm the expiration and termination of the TERFA on January 16, 2021. Vice Chair Penserga seconded the motion. The motion unanimously passed. E. Discussion and Consideration of Survey Questions for Community Input for the CRA Project Located at 115 N. Federal Highway Mr. Simon presented the item. The Board had previously discussed whether to move forward with a Letter of Interest (LOI) regarding the above property or whether to issue a Request for Qualifications (RFQ.) After discussion, the Board wanted the CRA to draft questions with input from the Board and forward them to the Advisory Board which was done on February 4t". Their responses to the draft questions were included and he noted they added an additional question. Chair Grant appreciated CRA staff's work and wanted to review each question and then offer recommendations. Legal could draft a disclaimer that the resulting project may not be reflective of the survey results. Question 1. Would you like to see a future redevelopment project incorporate a mix of uses, such as commercial and resident? Chair Grant commented residential and commercial is vague and he suggested listing the uses in groups such as office space, retail space, rental apartments, condominiums, green space, open space and transit authority and he defined the categories. He thought answering yes or no did not provide much input. Vice Chair Penserga agreed. The Board did talk about corporate headquarters, incubator space and others, but it would be covered under the office category. Chair Grant thought it would be beneficial to use check boxes. He thought a description where office could be co-working space, or corporate office or individual office retail could encompass a grocery store, small boutique, restaurant, or condominium. Question 2. Would you like to see a full-service grocery store (12,000 up to 20,000 square feet) as a commercial component incorporated into a future project? Chair Grant thought the question should be amended to read "Would you like to see a full-service grocery store and/or a corporate headquarters component from 12K to 20K square feet incorporated into the future project?" Question 3. Would you like to see a hotel incorporated into a future project? There were no changes to this question. 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 Question 4. Would you like to see workforce housing as a component of a future project? Chair Grant thought the question should read: "Would you like to see government subsidized housing included in the project? which could can affordable or workforce housing and not just market-rate housing. Board Member Katz thought the Ordinance out mandate workforce housing and he asked if Chair Grant wanted more than would be required. Chair Grant understood the first workforce housing ordinance required units to be included, but the second ordinance removed that requirement. Mr. Simon explained workforce housing is not mandatory. A certain percentage of units out have to be affordable/workforce units if the developer sought a density bonus, and the number of units that out be affordable out be calculated using the formula for the density bonus. He asked if more workforce housing was wanted. He also recommended not mentioning government housing because it has a negative connotation, although it should not. Chair Grant disagreed because the CRA subsidizes the project to make it affordable, but did agree it could have a negative connotation. He suggested asking if the community out like to see a mixed-income component of a future project. Mr. Simon commented they have a mixed-income component in a future project. Board Member Katz thought all agreed some people who take the survey may reject that type of project, as some people think that workforce or affordable attracts poor people. Mr. Simon commented they want to discourage a Not in My Backyard (NIMBY) mindset. Chair Grant commented with a mixed-income project, they are not defining it. It out have different price points. Board Member Katz suggested something akin to seeing housing options that cater to a variety of income levels. Board Member Hay commented if he is surveys that are wordy, he does not respond to them and it is a turn off. it Grant restated instead of having workforce housing, the survey would ask the participant if they out like to see a variety of income housing available in a future project. He thought the Board could discuss the matter in the future. Question 5: Would you like to see larger than required public open space(s) incorporated into the design of a future project? There were no changes. Question 6: Would you like to see additional public parking spaces incorporated into a future project? Chair Grant added a new question and prefaced it as he anticipated the Board out not want the question: "Would you like to see paid parking fors eci I events and high 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 traffic times?" He asked the question because if they have paid parking, they could have additional public parking because the fee would fund the additional public parking. Board Member Romelus asked why he asked the question if he anticipated the response would be no. Chair Grant responded it was to get the answer. If they get a zero percent response, it would signify no one wants paid parking. He thought it may help if people understand they have to pay for parking lots and garages and to have adequate parking, someone has to pay for it. For example, if they have a transit authority, residents would not want people parking there for the entire day. If additional parking is wanted, it has to be paid for and most transit authorities have paid parking except for Tri-Rail. In Washington DC, all the metro parking lots cost money. Board Member Katz was fine with the question as stated in question six because he anticipated all would say no to paid parking. If they want to continue to provide parking or increase parking, it will come at a price in the future. He thought rather than asking what type of parking, paid or unpaid, if people want more parking, the Board knows it has to be paid for somehow and it could be addressed in the future. Chair Grant thought the combination of adding the second question, if 90% want additional parking but only 10% would want to pay for it, it shows the disconnect for leaders to determine what the public wants and how to effect it. He supported the additional question. Mr. O'Hara commented on behalf of the Downtown Business Coalition, the hotel was important to their perspective as Boynton has not addressed it adequately. People have no place to come and stay in Boynton Beach and they have to go to Delray Beach. He liked the idea of a boutique hotel and a place for tourists to come and suggested the 115 Federal Highway property as the hotel site. There is a chance to draw a vision of an attractive downtown. He noted there is a new Hyatt on Atlantic Avenue and Federal Highway in the Delray downtown. Chair Grant noted hotels were addressed in Question 3. Chair Grant advised he favored providing TIF funding for a hotel to come to the downtown. It would impact jobs and the aesthetics of the downtown. He commented the fishing industry was strong. Board Member Katz explained a hotel on the corner of Federal and Ocean was proposed for decades and they still maintain to build a hotel in this area. He thought that corner was a better location for a hotel than along the railroad tracks. Mr. Simon requested clarification on Question 1 and the boxes for green space and open space. He did not know if the survey taker would know if those uses would occupy the entire space instead of incorporated into the project. Some of it is already required to be incorporated via Code and some could be requested. He asked with the transit authority, he thought Question 7 addressed the matter. Chair Grant agreed. He thought they should expand on the commercial and residential component to say office, retail, apartments and condos and the public would understand the differences of those 18 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 categories. He requested the Board modify the question to state: Would you like to see a future development project incorporate: office, retail, rental apartments, condominiums and have four boxes to check instead of asking for commercial and residential as a whole. The Board would incorporate the grocery store and corporate headquarters into Question 2. Question 4 was modified and they added a new question between Question 6 and 7 regarding parking for special events and during high traffic times. Char Grant opened public comments. Bradley Miller, Urban Design Studio, speaking on his own noted in Question 1, the zoning for this property is already slated for a mixed-use development through the CRA Redevelopment Plan and the Code requires it have a mix of uses. As to the parking, he commented it was attractive to come to Delray and park and not have to pay for parking. Parking progresses over time and as a community grows, parking is stronger and they could price parking. He recommended not wanting to discourage people from coming initially because of the cost. Attract the people first, the parking will come and let the paid parking come later as the area develops. Mike Weiner commented in the beginning everyone wanted a Borders book store for their downtown. He cautioned buildings are meant to last decades and they have to have a sense of place. Great places are based on how they are reinvented as change comes. He urged caution that the Board look far enough over the horizon. Chair Grant asked, in reference to the 115 Federal Highway site, if the Board wanted to ask adjacent property owners if they would sell their property or just use the CRA property. Board Member Katz thought if the Board has an opportunity to acquire them they should, but he did not want people to weaponized the question. They do not have to include that question. Chair Grant noted Question 8: "Are you a resident or business owner in Boynton Beach?" was added. Vice Chair Penserga asked if the Board was asking for contact information from the survey taker and if the intention was to gather any other information from the participants. Mr. Simon explained they have to get the survey back by March. The survey will be submitted in an email to those on their list, as a fillable PDF online to several thousand people. They would use Survey Monkey and city contacts. They have a limited time to issue the survey and compile the results. 19 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 Vice Chair Penserga noted when people view change.org or some other petition, in order to give the survey weight, he needs to know if the participants are real. Mr. Simon responded they could add space for the participants name. Chair Grant noted Survey Monkey limits responses by IP address. He thought that was the best way to move forward, especially using email. They could always use paper surveys at City Hall. Motion Board Member Hay moved to approve the survey as amended. Board Member Katz seconded the motion. The motion unanimously passed. F. Consideration of the Third 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) Motion Board Member Hay moved to approve. Board Member Romelus seconded the motion. Thuy Shutt, Assistant Director, explained Habitat for Humanity received grant funds to build affordable housing. One last unit was completed today and they received their Certificate of Occupancy. The Board previously granted an extension to January 31St to complete the paperwork and got an extension to February 15th to submit a financial review report for reimbursement. Habitat for Humanity needed the additional time because they also have to submit a financial report statement showing how the funds were spent. All will be submitted by March 31St. Pictures of the update were contained in Attachment 2. Vote The motion unanimously passed. Commissioner Romelus requested they not require so much paperwork. Ms. Shutt explained this program is no longer in effect. The next affordable housing grant program will require a lot less paperwork. This was for the non-profit organization program implemented three years ago. G. Consideration of a Loan Release for the Small Business Disaster Relief Forgivable Loan to Beach Tennis, LLC Motion Board Member Katz moved to approve. Board Member Hay seconded the motion. The motion unanimously passed. H. Consideration of Eligibility Requirements for the Economic Development Grant Programs for FY 2020 — 2021 20 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 This pertained to rent reimbursements for take-out restaurants. Many restaurants became take out only. He thought they should help them as they are brick and mortar establishments. He hoped they would be given Tier 2 status. Tim Collins was unsure if his business would be eligible and commented their kitchen is in a food trailer. He would have to expand his location by 50% or more, but the CRA does offer interior and exterior build out grants. Motion Board Member Romelus moved to approve. Board Member Hay seconded the motion. It was noted the deadline to apply was up to one year from receiving their Business Tax Receipt from the City. Vote The motion unanimously passed. I. Consideration of First Amendment to the Phase II Interlocal Agreement for The Town Square project. Chair Grant commented this item needed to be removed from the table and off the agenda until the City can respond appropriately. Motion Board Member Hay so moved. The motion was duly seconded. The motion unanimously passed. 16. New Business The Fish Depot Market. Attorney Duhy explained by statute, they would need to notice a lease, which is considered a form of disposal of property and it requires 30 days to publish it in a newspaper. Chair Grant commented at the next meeting, they can approve or not approve passage of the rental agreement. Attorney Duhy explained they have to publish a notice for 30 days in a newspaper of general circulation. Chair Grant asked if they had to wait 30 days if a rental agreement from the property owner comes with the property. Mr. Simon explained their current agreement with the property owner required the property be delivered vacant. Chair Grant thought they would have to agree to a sixth amendment to the contract, to allow the Fish Market to have their offer to the CRA included with the purchase and sale of the property. Chair Grant commented it is almost nearly 21 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 impossible to get the current property owner to enter an agreement the Board would enter into tonight and deal with zoning and the Business Tax Receipt in a new location. Mr. Simon explained everything is in place. Earlier in the day, Ken Dodge, CRA Counsel, did not believe another amendment would be necessary and all is lined up for closing. The current deadline is February 26, 2021. Chair Grant asked what are they willing to accept for a rental agreement in the next 15 days and it is pre-approved with this Board. Mr. Collins commented he opened his bar and grill in 22 days and he understood, the CRA was purchasing the property with the thought in mind of a developer putting up a large development. He thought if they could arrange a lease if there a break down, they would need a short, three or six-month, notice to vacate. He hoped for a three-year lease, unless there is already an approved project for the location . The property is an older building and not improved. An unimproved older building goes for $8 to $10 per square foot. An improved older building is about $15 a square foot and would even be okay with going more towards the top end. The terms would be in favor of the City and CRA and would not interfere with development. Mr. Collins noted there is an empty lot between the building, which he would like to turn into a green space. Chair Grant summarized Mr. Collins wanted the CRA to pre-approve a one-year renewal lease for a period of three years, with a 90-day notice to vacate without cause. The rent would be $2,500 a month from March 1, 2021 to February 28, 2022. Chair Grant supported doing whatever the CRA could to assist Mr. Collins, if the Board gives Legal the option to accept an exchange with this type of lease. He commented it may not be with Mr. Collins and someone else may try to undercut Mr. Collins, but he thought most would not be seeking this type of lease. Board Member Katz was not comfortable asking staff to iron out a complex agreement that may or may not go to Mr. Collins that may impede development. He did not support a lease at this time. Board Member Hay agreed. Attorney Duhy explained they could do that, but she would not recommend it. All they have in the current agreement is whether the property they are purchasing is vacant. The CRA does not have control over the term of the lease and there are very few ways to review the lease. They CRA could move forward, but it would require negotiating with the existing owner and there are a lot of other terms they did not discuss. The CRA Board cannot void the terms of a lease that a new tenant coming in would accept. Chair Grant hoped in March the Board could work with him. They can publicly notice the property as soon as they have it, but it would be 30 days from then. The economic development and rent reimbursement grants are available. Mr. Collins commented he did not want to impede a development and they would be willing to accept language to go forward. He hoped to create a lease they could review.. 22 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 11, 2021 Board Member Katz was not comfortable with any scenario. Mr. Simon announced he respects the Board's attempts to help the business owner, but he did not think there was any way around the video and minutes of the meeting and discussion about how to circumvent the disposal process. He advised it was a bad idea. Chair Grant commented they will continue to try to assist Mr. Collins. The fifth extension they could put the property up for disposal and Mr. Collins should submit a LOI. The first time they could discuss a lease would be in April. May 11th would be the earliest a lease could be approved, if for a special session. Attorney Duhy agreed. She thought with continued interest, he should submit a LOI with rental terms they would agree to. 17. Future Agenda Items A. MLK Jr. Boulevard Corridor Commercial Redevelopment and Affordable Multi-Family Rental Apartment Project Update B. Update on Sara Sims Park Amphitheater Plans C. Ocean Avenue Lighting Chair Grant requested adding TIF financing as a future agenda item. He requested information from the past and comparables and expenses with examples of Las Ventanas, Casa Costa, One Boynton and Seaborn Cove. More specifically he wanted the time frame for TIG, time frame, construction costs, sales price and an executive summary of their requirements for the last 10 years such as how many tenants, in the commercial locations to get the TIF. Chair Grant was excited regarding the funding balance to light Ocean Avenue and other areas in the CRA District that need lighting as well. Mr. Karjalainen explained how the public could access a recording of the meeting. 18. Adjournment There being no further business to discuss, Chair Grant adjourned the meeting at 9:06 p.m. Catherine Cherry Minutes Specialist 23