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Minutes 05-11-21 Minutes of the Community Redevelopment Agency Board Meeting Held on Tuesday, May 11, 2021, at 5:30 p.m. Via GoToWebinar Online Meeting & City Hall Commission Chambers 100 E. Ocean Avenue, Boynton Beach, Florida Present: Steven B. Grant, Chair Mike Simon, Executive Director Ty Penserga, Vice Chair Thuy Shutt, Assistant Director Woodrow L. Hay, Board Member Kathryn Rossmell, Board Counsel Christina Romelus, Board Member Justin Katz, Board Member 1. Call to Order Chair Grant called the meeting to order at 5:31 p.m. Alan Karjalainen, Web Design Coordinator, read a statement explaining how the meeting would proceed and how the public could participate in the meeting. 2. Invocation The invocation was given by Chair Grant, 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 B. Adoption of Agenda Motion Vice Chair Penserga moved to approve the agenda. Board Member Katz seconded the motion. The motion passed unanimously. 5. Legal 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 Meeting Minutes Community Redevelopment Advisory Board Boynton Beach, Florida May 11, 2021 Board Members Katz, Hay and Romelus had no disclosures. Vice Chair Penserga attended a Downtown Business Coalition meeting last week. Chair Grant also attended the Downtown Business Coalition meeting. He announced he does not represent Tim Collins. Last Thursday, he attended a meeting at Ocean Breeze East. One concern raised was Crime Prevention Through Environmental Design (CPTED). Because the building design allowed for stairwells to be open to all sides of the roads, people use it as a walk through. He thought they should ensure future site plan reviews include CPTED to ensure resident safety. 7. Announcements and Awards 8. Information Only A. Public Comment Log B. Public Relations Articles Associated with the CRA 9. Public Comments Chair Grant noted Mr. Camalier was present and assumed he would speak about the 115 Federal Highway item, 10. CRA Advisory Board A. CRA Advisory Board Meeting Minutes -April 1, 2021 B. Pending Assignments 1. Review of Commercial Properties within the CRA Area (TABLED 5/6/21) Mike Simon, CRA Executive Director, explained the CRA Advisory Board was tasked with reviewing four properties in the CRA District. The properties were presented to the Board by staff. After discussion and a vote, the Board decided, because there were several new members present, to table the item so they could go into the field to further investigate the properties. They will come back in June to discuss them in greater detail. Chair Grant commented they need to know about these properties each meeting because sometimes the properties sell quickly. He will attend the next meeting, and show them Google Streetscape, the property appraiser's maps showing values and other commercial and residential sites that provide recently sold information. Mr. Simon explained he and Ms. Nicklien have already done so. Staff provides them with every available resource. He will remind them of those websites at the next meeting. Chair 2 Meeting Minutes Community Redevelopment Advisory Board Boynton Beach, Florida May 11, 2021 Grant thought it was imperative to go through the properties. If they do not have a decision, it should be added to the "Pursue" column at a later date option. 11. Consent Agenda A. CRA Financial Report Period Ending April 30, 2021 B. Approval of CRA Board Meeting Minutes -April 13, 2021 C. Approval of Commercial Property Improvement Grant Program in the Amount of$12,405.90 for AIMS Marketing Systems Inc. Located in Ocean Palm Plaza at 1600 N. Federal Highway, Unit 12 D. Approval of Commercial Rent Reimbursement Grant Program in the Amount of$13,026 for AIMS Marketing Systems Inc. Located in Ocean Palm Plaza at 1600 N. Federal Highway, Unit 12 E. Approval of Commercial Property Improvement Grant Program in the Amount of $17,433.23 for Aurora's Mexican Kitchen Inc. Located at 410 E. Boynton Beach Boulevard, Unit C F. Approval of Commercial Rent Reimbursement Grant Program in the Amount of $12,900 for Aurora's Mexican Kitchen Inc. Located at 410 E. Boynton Beach Boulevard, Unit C G. Approval of Commercial Property Improvement Grant Program in the Amount of $17,535.98 for Patterson Plaza, LLC Located at 1815 S. Federal Highway Motion Vice Chair Penserga moved to approve. Board Member Katz seconded the motion. The motion passed unanimously. Individuals who applied for commercial facade grants were present as noted below: Aurora's Ramos, President of Aurora's Mexican Kitchen, was present. Pablo Del Real, Vice President, explained he and his wife moved into the 410 E. Boynton Beach Boulevard Unit C in late October and they have been trying to get the unit up to speed as a commercial kitchen use. Mrs. Ramos wants to cook the food she grew up with using natural ingredients. Chair Grant commented the CRA has programs to help market the business and the Board wants to work with her. He requested they let the Board know when they are open. 3 Meeting Minutes Community Redevelopment Advisory Board Boynton Beach, Florida May 11, 2021 Clint Oakley has lived on Boynton Beach Boulevard for 35 years. He is located at 1600 N. Federal Highway, Units 11 and 12. He would like to clean up the building and make it presentable, provide employment, and provide good quality marketing for the local businesses. He has good plans for the office and has two employees working inside and several outside in the field. Brittany Patterson provided a statement on behalf of Patterson Plaza and she thanked all who reviewed and approved their application. They were looking forward to enhancing this area in the community. 12. Pulled Consent Agenda Items None. 13. CRA Projects in Progress A. Marketing, Business Promotions, and Social Media Update Renee Roberts, Social Media and Communications Specialist had a presentation showing the marketing, promotions and social media updates that were handled in April. The Board Members viewed the presentation, promoting the Spring issue of Redevelopment Works, the CRA's newsletter and upcoming promotional events to be held during the summer. Examples of posts promoting small businesses were viewed. A quarter page add in the Coastal Angler Magazine was viewed promoting Valtect Fuel and Marine Diesel fuel at the Marina. A quarter page ad promoting dining, diving, fishing, boating and jet skiing was also viewed. Mercedes Coppin, Business Promotions and Events Manager, announced staff promoted Boynton Beach Bucks for the Your CBD Store and worked with the owner to identify a promotion, which was $10 off a purchase of$30 or more. Nine Boynton Beach Bucks were redeemed. The survey they used for the promotion had 93 responses. Fifteen percent of the respondents shopped there before and 83 had not. Eighty three percent were residents and 17% were not. Examples of the posts they used to share on social media were viewed along with custom posters. The promotion was shared with City of Boynton Beach staff and to over 2,300 individuals on the CRA email subscriber list. The Business Promotions team participated at the City's Egg Stravaganza event and distributed copies of the Like a Local business guide and vouchers for the Your CBD Store Boynton Beach Bucks offer. In April, staff promoted Boynton Beach Bucks for Guaca Go, who wanted to expanded their hours. The deal was $5 off a purchase of $12 or more between 5 PM and 8 PM. Fourteen Boynton Beach Bucks were redeemed. The survey had 131 responses: 34% stated they ate there before and 66% had not. Seventy eight percent were residents and 22% were not. Examples of the social media posts were viewed. 4 Meeting Minutes Community Redevelopment Advisory Board Boynton Beach, Florida May 11, 2021 The CRA newsletter was distributed to those on the CRA email list and published on the Boynton Beach Insider Blog. It had a story promoting Chair Grant's message and articles about the public parking lots at 115 N Federal Highway and about the Purchase and Development Agreement with the Boynton Beach Office Condo LLC. Ms. Coppin reviewed the businesses featured in HitTheBiz and about dining, recreational, and marine information, the transfer of the Women's Club to the City, and details about the Social Media Outreach Program (SMOP), the Boynton Beach Bucks promotion, the Affordable/Workforce Housing Grant programs, and the Neighborhood Signage and installation/repair grant programs. Staff published a blog of five business promotional events over the summer including dates, times and location. Staff is finalizing some details about upcoming events that will be released this weekend. Chair Grant asked if they will advertise with the Coastal Star and learned staff does not advertise with them. Chair Grant recommended they do so because the Coastal Star is a free publication in the area. There was consensus to advertise in the Coastal Star. B. Social Media Outreach Program 2nd Quarterly Report (January-March 2021) Renee Roberts had a presentation Ms. Roberts explained there are 66 businesses registered and 98 registered in the program since inception. Three new businesses were added this quarter and there were 55 total business contacts. She explained the Boynton Beach Bucks and SMOP goals. The SMOP is used to create Facebook ads and SMOP 1-on-1 Business Assistance. Boynton Beach CRA social media has increased on both Facebook, Twitter and Instagram. Ms. Roberts reviewed future CRA projects. C. CRA Economic & Business Development Grant Program Update Bonnie Nicklien, Grants and Project Manager, advised there are eight businesses left in the grant process in various stages. There is not enough money to fund all of them, but some of the projects are too early and when the new fiscal year starts, they can apply then. D. CRA District Lighting Improvement Project Update Thuy Shutt, Assistant Director, reviewed a spreadsheet. The Board directed staff to develop a list of lighting improvements in the CRA that could be implemented this fiscal year. She clarified implementation could mean construction and/or design underway or committed. Staff prioritized the projects and provided a preliminary cost estimate. They will not know the actual costs until the project is bid. Sometimes quotes are given, but some projects need to be designed. The first item was the Ocean Avenue Bridge East between NE 1st Street and Federal Highway at a cost of$155K. She explained the scope of work that needed to be done as contained in the meeting materials. Most of the new lighting is rented from FPL as the City does not like to store light fixtures. They 5 Meeting Minutes Community Redevelopment Advisory Board Boynton Beach, Florida May 11, 2021 prefer FPL install them and the City pay for the cost. The next item was the East MLK Jr. Corridor Streetscapes. These need to be done in conjunction with new projects so it would be a comprehensive project that looks at amenities and existing nodes. Chair Grant supported moving the Ocean Avenue Bridge priority up as the area under the bridge could be enhanced with more lighting making it a safer space. Board Member Katz noted the total cost of all the projects was $141 K over what the Board had allocated. He asked if there was anything definite in the current budget they know they would not spend that could fill in the gap to move forward with all the items. Mr. Simon explained they have been identifying money for other items When they move into June and July, the members can look at the roll over budget and identify other funds that could be reallocated this fiscal year. Mr. Simon anticipated most of the project would likely begin before October 1St, but others may not, which could be funded in next year's budget if they cannot find the extra $141 K this year. Staff will bring updates to each meeting. Board Member Katz asked what items will not be started this year. Ms. Shutt explained Item 5 was in conjunction with a streetscape project. The Ocean Avenue Bridge would take longer. Ms. Shutt noted the bridge has upper and lower components. Attachment 2 had visuals of the corresponding projects. Board Member Katz had no trouble trying to fund them all, but if not, prioritize what can be started as soon as possible. It was suggested making a motion to approve and whatever funds are needed in the next fiscal year, they allocate it, so they can move forward with the lighting because it adds a lot of value in the CRA District. Ms. Shutt explained they would try to make it work and they would bring it back to the Board. Board Member Hay agreed with Board Member Katz's suggestion as long as it would not jeopardize lighting on the agenda, and in particular, the Sara Sims project. Chair Grant asked about lights at certain parks, as they are part of the City's CIP Plan and he requested Mr. Simon provide him with the City's CIP, and the CRA cannot spend money on anything in the City's CIP that is less than three-years out. Ms. Shutt requested the Board give direction for staff to work with Legal counsel to develop an ILA to channel money to the City for these projects. Motion Board Member Hay moved so moved. Board Member Katz seconded the motion. The motion passed unanimously. 14. Public Hearing 15. Old Business A. Project Update on Azur Equities, LLC, the selected proposer of the RFP/RFQ for the Cottage District Infill Housing Redevelopment Project 6 Meeting Minutes Community Redevelopment Advisory Board Boynton Beach, Florida May 11, 2021 Mr. Simon advised they had two successful meetings with Franck Gotsman of Azure and the team on April 22nd. They met with the City's Planning and Development Staff on April 29 and Azure made some adjustments staff wanted them to explore. Azure is excited to get started. The property will be re-platted into future lots and the project, instead of being an infill housing project, will use a simple streamlined process. The replat, subdividing and roadways are the first step, which will add another two or three months to the regular site plan process, but it is necessary. They will have revisions and a partner willing to work with the CRA. Staff will have the Purchase and Development Agreement ready for the June meeting with key terms, and they will have revisions be presented and become part of that Development Agreement. Chair Grant wants to explore changes to the Comprehensive Plan that need to be made so the project is the best it can be. He noted the townhome vehicles cannot back out of the garage onto the road, and if the CRA can say they think the City should make certain changes to the LDR's to get the best project for infill single-family homes, they could. It was noted the Palm Beach County Housing Authority is auctioning its properties. Board Member Katz had no objection inquiring with the City, it is something he thought could be worked on. Vice Chair Penserga asked if the concern was the process would be so cumbersome the project would become financially unfeasible. Chair Grant commented it was a concern, as the CRA would have to spend funds for the developer to make it financially feasible. Vice Chair Penserga asked what the plan to finance the project was, about the contingency for financing so the project can be completed and what the process is in verifying the items. He noted the bank was a foreign bank. Chair Grant thought they should move forward with the design first, then the financing. They can set dates regarding the financing and the CRA's recourse. B. Discussion and Consideration of Lease Terms with C Life C Food, Inc. for the CRA-owned Property located at 401-407 E. Boynton Beach Boulevard REVISED Mr. Simon brought this item back to the Board and reviewed Mr. Collins' Letter of Intent was selected and they discussed the proposal. Attachment two contained the requirements and staff developed a draft lease agreement, which was presented to Mr. Collins in attachment three. Attachment four had questions and concerns. Mr. Collins had met with the City and his architect. Staff was not present, but there were some items Mr. Collins and his architect will have to address. Mr. Collins noted item 2B regarding the 5% annual increase. The original intention was to be as temporary as possible for the City and to work together so when a bigger opportunity comes along, Mr. Collins could vacate the premises quickly. After brief discussion, it was decided a 2% annual increase was appropriate Mr. Collins explained the rent was a total rent plus sales taxes. The lease would be a triple month lease which means he is responsible for the property taxes and insurance on the building, which could be $2K a month. He was unsure the CRA pays taxes on 7 Meeting Minutes Community Redevelopment Advisory Board Boynton Beach, Florida May 11, 2021 the property. Mr. Simon explained with a commercial lease, the CRA is no longer protected by the designation and the property is looked at as a commercial property and the Property Appraiser assesses it accordingly. Discussion followed that Mr. Collins was not renting all four properties. The taxes on the 401 property was $4,800 a year and $2,784 for the lot between the buildings, which was about $632 a month in taxes. He did not anticipate the terms of the lease would be so expensive they would increase the value for the lease. Chair Grant recommended setting the amount at $500 a month. Mr. Collins favored a flat rate amount. Chair Grant did not think the CRA would lose money by renting the property. The point is to set the lease for at least the first year for a fixed cost not variable. Mr. Simon explained now that they know the lease is not a triple-net lease, the $500 is $132 short of the existing taxes. It was explained the difference would come from the rent and the CRA would not profit $2,500 a month. Board Member Katz had no problem with setting a fixed amount for one year, and a percentage rate the following years. They do not know the property taxes for 2021. It was noted the Property Appraiser is limited to increasing the assessed rate each year to 10% each year. Attorney Rossmell repeated for the first year, the lease would not be a triple net lease, just a capped rate normal lease, but beginning the second year, the lease would convert to an ordinary triple net lease. That number would be added on top of the rent. Mr. Collins asked if then moving forward, that number would be added on top of the rent and learned it would. Mr. Collins advised he could work with that. Chair Grant commented the amount will be spelled out what the monthly rent would be and be all inclusive. Mr. Simon indicated Mr. Collins was interested in discussing the grants available to eligible commercial businesses, which includes half of the rent for the first 18 months of a multi-year lease. It was not agreed to, not proposed, and Mr. Simon asked if they will reduce the first years rent by half. Mr. Collins was ok waiving that for the first year. The new offer did not include commercial grant rent reimbursement. Chair Grant asked if they want to allow up to $50K of commercial grants to the building. Vice Chair Penserga thought the purpose of the building was only to be a temporary home. He did not think it was in the best interest of the CRA. Mr. Collins thought they may not need the interior renovation grant because the building is solid cement. The only question is the front glass. He was fine with that, but he liked the exterior paint and sign assistance. Chair Grant explained they combined the exterior and interior grants. Mr. Collins noted they will have to address the parking lot, which was about $150K Ms. Shutt mentioned the parking lot is about $100K for just the paving and dealing with existing conditions. Because of Mr. Collins' change in use, it resulted in everything being reviewed differently and for safer ingress/egress out of a major arterial road. If the property, except for the 401 property, was demolished, staff would explore a pop-up business in the area and the property could be sodded, accommodate a food truck, or 8 Meeting Minutes Community Redevelopment Advisory Board Boynton Beach, Florida May 11, 2021 have an art show. Staff has not had the opportunity to discuss those uses with the City, but the intent is to re-sod the property. Mr. Collins explained the building is 2,062, square feet and by Code 11 parking spaces are required. If the CRA wants to use that building in the future, they have to decide how much they want to spend. The laundromat has a long-term lease for seven years. The CRA, as a landlord, has to determine how to rent out the space with the parking associated with it and determine the costs. They may have to wait for next year's financing. Mr. Collins pointed out that as a temporary tenant, there is very little chance he will recoup the money they will have to invest in a parking lot in years one, two or three and still be in the black. Mr. Simon explained the CRA Board did not issue an RFP or put up a sign to rent the building. They received unsolicited interest for various potential uses, some of what are the existing use which would not require some of the things that a change of use, which is being proposed, requires. There are other factors in play. Someone will have to build a parking lot and make many upgrades, but it was not what the CRA proposed. Someone was interested in the building that turned into five people wanting the property. The Board is not in a position to solicit someone and would provide amenities. There were no presupposed circumstances or financial assistance that he offered the public to take advantage of and he made no stipulation to anyone that said the CRA would provide items. Board Member Katz thought it raised concerns about changing the use. He agreed it should not be the tenant's responsibility to bring the building up to Code and build a parking lot. If the CRA plans to tear down the building in a year or two, he asked if it was worth spending the money. Board Member Hay asked about the parking and the cost for parking for the entire complex. Chair Grant noted one use was for equipment rental which would not require a change of use. Mr. Collins heard at the planning meeting that when a business moves out and no longer exists, the new codes are in place. Chair Grant commented the CRA after spending $900K to purchase the property has to decide what the best use for the CRA District is. They have to decide if they should sod it and land bank the property or decide if it will be five years before a developer comes in to develop the entire block. He thought it would be at least five years before property owners would decide to sell and the CRA needs to decide this issue. Mr. Collins explained the exterior does not need help, but the parking lot does. Landscaping requirements are also considered exterior improvements. Someone should provide that information before the CRA decides what to do. Vice Chair Penserga thought the sticking point is the parking lot. Mr. Collins noted the lot could have a food truck or other pop up events, but even if he used all the parking 9 Meeting Minutes Community Redevelopment Advisory Board Boynton Beach, Florida May 11, 2021 spaces on the three lots, parking would still not meet Code. By the time he puts equipment in, taxes and insurance, and if they use the existing parking by the building that will be torn down, the spaces are close, but it does not meet the Code. There are about 11 spaces across the front of the property. Mr. Simon explained the decisions for the Board are if the Board wants to turn it into a rental, what is involved and if so, who is responsible for the improvements. Chair Grant asked what the Board was willing to spend to move the project forward. He suggested because the Board selected an applicant, that the Board request the applicant supply the cost to the CRA, including ADA requirements, less his equipment costs, and then the Board decide. Mr. Simon would not recommend entering into the lease agreement without this information. The City will also need to approve it. Mr. Collins explained the last item was to have the right of first refusal. If someone made an offer to buy the three lots, he wanted the opportunity to match the offer. Chair Grant had no problem with that if he is still a tenant. Chair Grant commented instead of first refusal, the purchase price would be nothing less than the CRA's cost. Board Member Katz thought the purpose of the property was to ensure assemblage. He would not be in favor of any sort of lease or sale of the property because then the Board would not have any ability to make sure it is part of an assemblage. Chair Grant thought the tenant should have the ability to match someone else's offer to purchase the three properties did not make sense because if the CRA offers the land as part of a bigger development the Board did not want to give Mr. Collins the right of refusal of nothing. Mr. Simon explained the issue would be publicly noticed and anyone can make an offer. Chair Grant commented as a public entity, the Board cannot sell it without giving Mr. Collins the option to buy it. The CRA would have to go through another 30-day RFP/RFQ. Attorney Rossmell summarized the discussion as follows: The lease terms were on hold until the applicant provides an estimate of the cost to bring the property up to Code. The CRA will analyze it and decide if it wants to move forward with a lease discussion at a future meeting. The Board also discussed other terms which were a 2% increase in rent, a flat fee of $500 for the 2021 year's rent and in 2022, the lease would be a triple net lease. Attorney Rossmell understood when the applicant comes back with costs, CRA staff and Legal would present a lease tentatively revised based on the Board's consideration. Mr. Collins requested the CRA provide an estimate of the insurance. C. Discussion and Consideration of Terms for an RFP/RFQ for the CRA Project Located at 115 N. Federal Highway 10 Meeting Minutes Community Redevelopment Advisory Board Boynton Beach, Florida May 11, 2021 Chair Grant understood the bullet points in the agenda were things the Board wanted to include or not so they can finalize the RFP/RFQ. The bullet points in front of the Commission were items to consider in order to finalize the RFP/RFQ draft for final approval next month. Jeff Burns, CEO Affiliated Development, reviewed the RFP/RFQ recommendations and made some suggestions. They spent a lot of time talking with community residents and businesses. He suggested, regarding housing, incorporating a mixed-income component to the housing. He thought employees could benefit by living close to where they work. If the RFP incorporates adjacent properties, a developer can demonstrate they have or can gain control of surrounding properties. If the plan calls for incorporating one of the surrounding properties, there should be some consideration to incorporating existing businesses into the new development For the RFQ, Mr. Burns noted the document talks about being qualified and having financing, he suggested providing proof of funds, both debt and equity and to demonstrate they can build the project. It was important to have experience in other similar public private partnership projects. Vice Chair Penserga asked how to incorporate mixed-use housing. Mr. Burns explained it was just incorporating set asides for different income levels. It does not have to be defined in the RFP, but it should incorporate a mix of incomes. It is documented as a restrictive covenant on the property that holds the set asides and they are normally from 80% to 120% of AMI. They enter into an agreement with the CRA to keep X percentages of the units as set asides. It could be 25% of the units as set asides. Kim Kelly, owner of Hurricane Alley, 529 E. Ocean Avenue, understood incorporating businesses. They have to change for the times. She thought what Mr. Burns proposed would be helpful and she also supported the mixed-use housing. If done correctly, it sounded like it was something they could move forward with. Board Member Katz agreed with Mr. Burns' comments and financing. In the past, plans were shown and then financing was lost. He did not know how to strengthen the requirement, but he supported that what is shown is legitimately backed. He liked the idea of having mixed income set asides. He like the idea of proof of site control for adjacent properties. He did not like if someone was not putting any investment in the project. Chair Grant spoke in regards to how to keep the financing, he thought if financing is not received by a certain date, it was not just a loan on the property, it was also getting a permit. They can include it in the RFP/RFQ and negotiate a timeline with what the developer thinks is possible. He noted with 500 Ocean, they asked for extensions, 11 Meeting Minutes Community Redevelopment Advisory Board Boynton Beach, Florida May 11, 2021 which the CRA Board granted for the utility work for the project. As for adjacent properties, the applicant has options to purchase similar to what the Board experienced with the Cottage District and it was something they would consider. He thought the City does not have Class A office space. 500 Ocean had Class A office space and one business took all 6,600 square feet of it. There were a few retail store fronts , and then the First Financial Plaza is office condo and the CRA is grossly underrepresented in office space. The City is in the middle of West Palm Beach/Palm Beach Gardens and Miami, and could offer corporate office space where people would be active during the day with coming in enter, not just people going out during rush hour. He wanted to add TIF for a CBA. He thought the set asides for properties lower than market values was a benefit, they also want to teach the next generation how to get experience. He wanted incorporation of a multi-modal design as this area was a Transit Oriented District (TOD.) He wanted a mass-transit option. The reason why he wanted to add TIF was for the community benefits. When they discussed mixed-income, the developer does not have to be an affordable housing developer, but if they have experience and can help subsidize the funds coming through with the American Rescue Plan, he would support it. He noted with Ocean Breeze East and the MLK Jr Corridor, funding from the Florida Housing Finance Corporation was the reason for the development and the CRA did not have to spend millions to obtain affordable housing. Board Member Hay wanted to see a mix of restaurants and administrative office space because he was aware office space is getting tight and they have an opportunity to generate jobs, while at the same time, he supported more walking space in the downtown area, in terms of activity spaces. Hurricane Alley's is always crowded and it would be nice to have another eatery down the street for the public. He emphasized input from adjacent property owners would be helpful and he agreed the CRA has one shot at this. The development will be around for a long time and they need to get it right. Chair Grant went to the Butcher and the Bar and used 500 Ocean's garage. He was glad they have that option and he encouraged all to visit the new restaurants across the street from Hurricane Alley. Board Member Romelus agreed with Board Member Katz's and Chair Grant's comments. It is an exciting project and she was glad they took the time to nit-pick each aspect. 500 Ocean was the start of the downtown and it was doing well. She saw people sitting in the courtyard by Pio Pio and it was a success. Office space is another success, but she thought the CRA should allow office space to be flex space if not taken up by one or multiple large companies to be a co-working space for multiple entrepreneurs and business owners. The space should be flexible and she was glad all are on the same page. Vice Chair Penserga thought the bullet points are the right direction and he will pay special attention to financing and protections for the CRA and City. 12 Meeting Minutes Community Redevelopment Advisory Board Boynton Beach, Florida May 11, 2021 Attorney Rossmell explained the Board can give consensus to give staff direction to move forward. Board Member Katz commented, in regard to building wealth in the community, and recalling a proposal from the community to infuse more trade for residents, he would be in favor of using TIF to cover the increased costs to use local union trades. If they incentivize them, they are guaranteed to have local workers. The money stays in the community and they would have however long for the property to be completed. The union trade apprentice programs are free as long as long as the individual puts in the work and learn in earnest and they are paid an honest wage. When done, they will do well and earn more than he will as a teacher. After the building is constructed, there will be a hub of trades available in the community. Vice Chair Penserga supported the proposal. Chair Grant noted TIF funding was not a requirement and asked if the Board wanted the applicants to have this as part of their proposal, or have them say they will consider it as part of the proposal. Board Member Katz asked if this pertained to the use of union labor or apprenticeships. Chair Grant asked if the Board wanted it to be specific to union labor, trades, apprenticeship or non-profits that provide career skills. Board Member Katz had no problem without defining a dollar amount saying the land and TIF funds are on the table. He would not object to the consideration of incorporating the use of local trades that would allow for apprenticeship opportunities during the time of construction. Chair Grant summarized it is a consideration of using local trades people, but have apprenticeship programs, which could be different because some local contractors do not have apprenticeship programs, but some in the area do. It is something this Board is highly considering, when they make their decision, based not only on the local organizations the applicant has, but the contract they sign with them to include them in the Purchase and Sale Agreement because they do not want to see the applicant say he has local contractors and then after the Purchase and Sale Agreement uses someone else. Board Member Katz agreed. He wanted to put in the contract the local trade unions and their apprenticeship programs because it is a guarantee if you use one you get the other, whereas local contractors who do not have apprenticeship programs may say they will bring on inexperienced people and train them, but local unions are tried and true with apprenticeship. He would put in there with regard to the use of local union trade associations with their apprenticeship programs being a component. Board Member Hay and Chair Grant agreed. Chair Grant was aware developers will say there is a cost associated with it, but the CRA can say they are fine with it and they will subsidize the added cost. The financing package will include the funds either in the budget or by using TIF. They are providing job training the next generation and the City is having trouble finding these skills. Board Member Romelus supported giving preference to local Boynton Beach residents. There was agreement they will have incorporation of trade unions as part of the application and consideration of local organizations as well. The aspect the Board will determine is if the applicant will say they have one electrical trade union position and 13 Meeting Minutes Community Redevelopment Advisory Board Boynton Beach, Florida May 11, 2021 another may say they have it with other trade unions. He hoped the union would be willing to work with multiple applicants because they know they will be part of the selected project. D. Consideration of Approval of Boynton Village, LLC a/k/a The Preserve's Performance Audit for Year Ending December 31, 2020 for Compliance with the Direct Incentive Funding Agreement Vicki Hill, Finance Director, announced the developer submitted a request for payment for their compliance audit for the 2020 tax year and they are in compliance. If approved, the CRA will issue year six payment for Fiscal Year 20/21 for $26,474. Under the terms of the DIFA and including the payment for year six, the CRA will have provided $305,467 in property tax increment revenue and during the same time, the CRA retained $556,959 in TERFA. Staff recommended approval for $26,474. The development has 100 rentals and five homes so there are 105 units. When they put items into fee simple, if there is no sort of restrictive language when building single- family homes or condos, an investor may take over, but the CRA wants to build wealth in the community through home ownership and equity. Motion Vice Chair Penserga moved to approve. Board Member Hay seconded the motion. The motion passed unanimously. E. Consideration of an Interlocal Agreement with the City of Boynton Beach for the Design Costs Associated with the Historic Woman's Club of Boynton Beach located at 1010 S. Federal Highway Ms. Shutt presented the item. The prior Interlocal Agreement was for construction costs which was to start in FY2022. This item will allow the Board to use funds to start this year for 20/21 so the City can procure services with needed items such as ADA bathrooms, a pedestrian crossing across US 1 between the Senior Center and the Woman's Club and window repairs and doors. Attachment Five is the prior approval and Attachment Three is a proposed design service ILA. Vice Chair Penserga noted they agreed to up to $250K for three years, and now there is another request for another $87K. He asked why this cost was not included in the prior request. It was explained the prior ILA envisioned the money to be budgeted for next year so staff would not be able to use this year's money towards that. The $250K was the anticipated cost for the construction of the project. City staff was working with CRA staff and the work could be done in-house. After further evaluation, the work could not be done in house. City staff feels they will need experts for the needed improvements and the design services costs be under another ILA. It would be cleaner that way and would not combine two fiscal years. 14 Meeting Minutes Community Redevelopment Advisory Board Boynton Beach, Florida May 11, 2021 Motion Vice Chair Penserga moved to approve. Board Member Hay seconded the motion. The motion passed unanimously. F. Consideration of an Interlocal Agreement with the City of Boynton Beach for Improvements to the Sara Sims Park Amphitheater Mr. Simon explained the Board had previously approved an ILA with the City to provide funding for elements to improve the Park. Once they approved the ILA, it went through the City's process and resulted in a delay for approval, City staff was able to get a clearer architectural design that addressed ADA and other required components. This was a request from the City to increase the funding from $100K for a total of $150K for improvements that were not envisioned. A visual of the amphitheater walls, ADA ramp and other electrical elements was viewed. It was noted the stage will be 36 inches off the ground. Staff identified $100K in funding. They have $238K in the Woman's Club improvement fund they did not use, and can take $100K from there and move it over. Motion Vice Chair Penserga moved to rescind the first ILA. Board Member Hay seconded the motion. The motion passed unanimously. Motion Vice Chair Penserga moved to approve the second ILA with the City not to exceed $150K. Board Member Romelus seconded the motion. The motion passed unanimously. 16. New Business 17. Future Agenda Items A. Discussion and Consideration of a Purchase and Development Agreement between the CRA and Habitat for Humanity of South Palm Beach County, Inc. for the CRA Owned Property located at 545 NW 11th Avenue B. Consideration of Award and Contract for Responses to the Invitation to Bid to Perform Landscape Maintenance Services on Properties Owned by the CRA C. Consideration of Award and Contract for Responses for the Management of the Boynton Harbor Marina 15 Meeting Minutes Community Redevelopment Advisory Board Boynton Beach, Florida May 11, 2021 D. Approval of the FY 2021 - 2023 Boynton Harbor Marina Dockage Lease Agreement E. MLK Jr. Boulevard Corridor Commercial Redevelopment and Affordable Multi-Family Rental Apartment Project Update F. Ocean Breeze East Affordable Multi-Family Rental Apartment Project Update 18. Adjournment Mr. Karjalainen explained how the public could access the video. There being no further business, Chair Grant adjourned the meeting at 8:07 p.m. v Catherine Cherry Minutes Specialist 16