Loading...
Minutes 08-10-21 Minutes of the Community Redevelopment Agency Board Meeting Held on Tuesday, August 10, 2021, at 5:30 p.m. Online Via GoToWebinar Meeting and In-Person in the City Hall Commission Chambers 100 E. Ocean Avenue, Boynton Beach, Florida PRESENT: Steven B. Grant, Chair Mike Simon, Executive Director Woodrow Hay, Vice Chair Thuy Shutt, Assistant Director Justin Katz, Board Member Tara Duhy, Board Counsel Christina Romelus, Board Member Ty Penserga, Board Member 1. Call to Order Chair Grant welcomed all to the meeting and called the meeting to order at 5:30 p.m. 2. Invocation The invocation was given by Vice Mayor Vice Chair Hay. 3. Pledge of Allegiance The members recited the Pledge of Allegiance to the Flag. 4. Roll Call Roll was called. A quorum was present. 5. Agenda Approval A. Additions, Deletions, Corrections to the Agenda A. Adoption of Agenda Motion Board Member Penserga moved to approve the agenda. Vice Chair Hay seconded the motion. The motion passed unanimously. Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 10, 2021 6. Legal A. Project Update on the Purchase and Development Agreement with Ocean One Boynton, LLC for the Ocean One Project Tara Duhy, Board Counsel, explained the above is a public plaza. The deadline for commencement of construction of the plaza, according to the Purchase and Development Agreement was March 9, 2021. On May 9, 2021, counsel the for developer notified them that the permit application included in the meeting backup, was filed with the City to commence construction. She emailed counsel for the developer on July 21St for a status update, but had not received a response. The options are to maintain and monitor the status, or issue a formal notice of default under the terms of the agreement. If the Board wants to continue monitoring informally as the Board has been doing, it is not a default, but the Board could at any time direct Attorney Duhy to do so. Chair Grant requested receiving an update otherwise if there is no communication, the Board needs to ensure the project moves forward. He thought having a response from the City is not enough. Attorney Duhy will provide an update at the September meeting from the developer about the status of their compliance. Chair Grant wanted to write a letter to the developer and counsel, indicating they are not issuing a default, but they need an updated status of the permit application and how it is moving along. Board Member Katz asked if they could also convey that failure to show evidence will result in notification of default. Attorney Duhy could provide that the Board will consider issuing a notice of default if they do not get further communication. There was Board consensus to do so. Attorney Duhy commented at the last meeting, the Board accepted the resignation of Mr. Simon, with his last working day as August 12, 2021, but his contract expires September 30, 2021 on its natural date meaning his benefits and all would continue to that date. She wanted to ensure this was the will of the Board and learned it was. 7. Informational Items and Disclosures by Board Members and CRA Staff: A. Disclosure of Conflicts, Contacts, and Relationships for Items Presented to the CRA Board on Agenda Board Member Katz disclosed he spoke to Brian Fitzpatrick and Anthony Barber about the Magnuson House and Centennial Management. . Vice Chair Hay spoke with Lewis Swezy and Catherine Roque of Centennial. Board Member Romelus got a text from Brian Fitzpatrick. Board Member Penserga spoke with Lewis Swezy and Elizabeth Roque of Centennial regarding item 16 B, Kim Kelley regarding 16D and Brian Fitzpatrick regarding the Magnuson House. Chair Grant spoke to representatives from Splashdown Divers, Brian Smith, Centennial Management, Thuy Shutt, Brian Fitzpatrick, Anthony Barber and Kim Kelly. 8. Announcements and Awards 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 10, 2021 A. Rock the Plaza at Ocean Plaza on August 21, 2021, from 3:00 p.m. to 6:00 p.m. Mercedes Coppin, Business Promotions and Events Manager, reviewed the upcoming event at 640 E. Ocean Avenue. Free parking is available and staff is working to finalize parking on the northeast corner of Federal Highway and E. Ocean Avenue. The CRA will spotlight businesses operating out of the plaza and will encourage patrons to walk the plaza businesses. There will be live music from the Paul Anthony and the Reggae Soldiers Band, cocktails and special promotions from plaza businesses and a Boynton Beach Bucks offer for participating restaurants. Chair Grant asked if there was more information about Pirates Fest. Ms. Coppin announced staff is excited about the event and was waiting for the Board to approve the budget before announcing the event to the public. The tentative dates are October 30 and 31st 9. Information Only A. Public Comment Log B. Public Relations Articles Associated with the CRA 10. Public Comments Kim Kelly, Owner/Operator of Hurricane Alley since 1996, gave the history of her business and advised her business was the only viable business in the downtown that lasted. She listed the obstacles she faced. She is a single woman business owner that started with a 26-seat cafe that grew to a 150-seat restaurant with 45 employees. She knows the CRA wants to buy the Oyer building and advised her lease will have one year left. Her lease is normally renewed every five years and without it, she and her employees are without jobs. She noted Hurricane Alley was part of the reason developers want to develop the downtown and the sale of the building does not mean sale of the restaurant. She wanted to ensure that before purchasing the Oyer building, there be contingencies in place that ensure the existence, relocation and replacement of Hurricane Alley in the downtown. She explained Hurricane Alley is a family and she wants to make new memories. Board Member Katz explained the Board already discussed what she described and it will be a critical piece. Board Member Romelus and Hay agreed it was unanimous. Brian Fitzpatrick, 409 NE 1st Street, wanted to discuss the Letter of Intent ( LOI) he submitted. It pertained to 211 E. Ocean and it had several moving parts. While some questioned the CRA's purchase of the property in 2011, he wanted the Board to keep its focus and keep in mind that land banking is a valuable tool. He thanked the Barber and Davis family for their interest in the property as it brings the topic into the spotlight. Mr. Fitzpatrick commented his LOI is unusual as it suggests the CRA move the Magnuson House to a vacant lot the CRA owns on NE 1st Street. He has two vacant lots adjacent 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 10, 2021 to the CRA's vacant lot, which could be transferred to the CRA and it will allow the Barber and Davis family to have a beautiful facility because on NE 1St Street, they would have more than twice the square footage. He reached out to Dr. Dagher, who was present to show the unification they have in their desire to build something beautiful on this block. The three parcels are slightly over an acre. He commented there is a misconception that he was not willing to entertain discussions with the City to sell the property, and he did not recall a concerted effort by staff to address that issue. He wants to be part of something bigger than what they have today whether he is in or out of the picture. He requested the Board give his proposal consideration. Chair Grant appreciated the new information and noted staff responded with an email. The LOI will be discussed as part of the package. The current LOI was a rough draft and the fact the adjacent property owner was present was good. He thought a Memorandum of Understanding could help solidify this Board's decision. Having something in writing and by being present, they can make a better decision. He requested the background and pictures of the condos he owns on the north half of the block and Mr. Dagher's property, and how it will fit into the design development plan. The issue of moving the Magnuson House to a residential lot is it could not be used for a commercial use without a change in land use. Moving the home there or onto Seacrest or a better location could save the Magnuson House. The Board appreciates not wanting to demolish the home and they will get more information at the next meeting. They want to have the information two weeks before the CRA meeting so staff can analyze his proposal. Mr. Fitzpatrick asked if there was more beef to the proposal for 211 than he has currently seen. Chair Grant explained it is an unsigned document that did not have his name signed on it. He suggested speaking with a land planner to help him draw up a LOI. Mr. Fitzpatrick found out about the LOI after the fact and was puzzled why adjacent property owners were not made aware. Chair Grant noted for an LOI, the Commission considered discussing it. Staff was directed to post the 30-day Notice, which is the notice to the public. August 31St was the deadline to provide an updated LOI with a Memorandum of Understanding between him and adjacent property owners. The Board will hear the item at the September 14th meeting. No one else coming forward, Public Comments was closed. 11. CRA Advisory Board A. Pending Assignments B. Reports on Pending Assignments Ms. Shutt advised they cancelled the last meeting because there was only one item to review. They will be reviewing more available properties at the next meeting. Chair Grant requested when they have the available properties, staff notify the property owners. Ms. Shutt advised some property owners or their representatives come to the meetings. 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 10, 2021 12. Consent Agenda A. CRA Financial Report Period Ending July 31, 2021 B. Approval of CRA Board Meeting Minutes - July 13, 2021 C. Approval of Commercial Rent Reimbursement Grant Program in the Amount of $13,200 to Studio Glo, LLC located in Flamingo Plaza at 413 S. Federal Highway D. Approval of Commercial Property Improvement Grant Program in the Amount of $22,632 for Stevo, Inc. d/b/a CK's Lockshop & Security Center located at 301 SE 4th Street 13. Pulled Consent Agenda Items None. Motion Board Member Penserga moved to approve the Consent Agenda. Vice Chair Hay seconded the motion. The motion passed unanimously. 14. CRA Projects in Progress A. Rock the Plaza at One Boynton Recap Ms. Coppin reviewed the above item. Patrons were encouraged to stroll the plaza and visit the vendors. They had a special Boynton Beach Bucks offer which was a $5 voucher to be redeemed with any .purchase. Merchants redeemed 97 vouchers. Staff also encouraged event goers to take the survey. The results of the survey reflected 75% of the attendees were residents, and 25% were not. Overall feedback showed the businesses were very satisfied with the event. Ms. Coppin had photos showing what the event looked like. Chair Grant liked the ax throwing and kid-friendly activities. He asked if the schools and other family-friendly associations were notified of the event. Ms. Coppin responded school started today. Staff usually does notify the schools as well as having event information at City centers. B. Boynton Beach Night Market Recap Ms. Coppin noted the first event was held on July 31St from 6 to 10 p.m. at the amphitheater, which was fabulous Thirty-three vendors participated and 18 were local CRA District businesses. This was a family-friendly event that had a game trailer, henna tattoos and face painting. Having a family friendly event that engaged the children encouraged parents to stay longer. There was live music by the Valerie Tyson Band and 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 10, 2021 roaming characters that came out once it was dark. Photographs of the event were viewed. Vice Chair Hay liked having vendors close by so people waiting in line could see the event, hear music and participate rather than lining them up on Ocean Avenue. He thought the number of people that attended was awesome . It showed people were ready for activities and the event was well organized. He thought the public could not wait for the next event and he thanked staff for a job well done. This was a $30K event. That was not planned or budgeted event due to COVID and Mr. Simon praised Ms. Coppin for doing an outstanding job on short notice. C. Marina Marketing and Social Media Update Renee Roberts, Social Media Communications Specialist, advised in July, CRA social media platforms were used to promote local business offerings, give updates about the CRA initiatives and promote business promotional events. She reviewed the various businesses and RFP's that were released. They promoted the Boynton Beach Night Market and Rock the Plaza. Print advertising included a quarter page ad for jet skis published in the Coastal Angler Magazine. Chair Grant pointed out next month is Goliath Grouper Spawning. He asked if she reached out to the different dive boats, and learned staff has print ads already in the Coastal Angler and Coastal Star promoting Goliath Grouper and the dive charters for next month. D. CRA Economic & Business Development Grant Program Update Bonnie Nicklien, Grants and Project Manager, reviewed the above balance. There was $113,492 left for the remaining fiscal year. The City Business Tax Receipt's issued for the month of July were included in the meeting materials. Board Member Penserga asked how many grant requests can be fulfilled this year. Ms. Nicklien explained there are about six applications pending, but it was unknown if they will get their applications in. Three should be able to be funded this year. 15. Public Hearing 16. Old Business A. Consideration and Discussion of Fiscal Year 2021-2022 Project Fund Budget (Tabled7/13/21) Motion Board Member Penserga moved to remove from the table. Board Member Romelus seconded the motion. The motion passed unanimously. 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 10, 2021 Vicki Hill, Finance Director, explained before this item was tabled last month, she was going through to say how much was available. She reviewed, in reference to Tax Increment Financing, they are up from last year by 14.8% which is $15.8 million. With the Marina and a fund balance surplus, they will budget $16.9M. Debt service is $2.1 M and operating costs are $2.8M. Funds for the DIFA, plus Town Square are about $4.6M, which leaves the CRA $6.2M to allocate for the Project Fund. Mr. Simon reviewed the current project list and projects proposed by staff for next year and explained the spread sheets. Staff provided the estimated roll over of existing balances for line items. There is currently $1.3M to address the MILK Jr. Boulevard Corridor or future projects. The next line shows the match obligation to Centennial Management for the MILK Jr Corridor project of $625,750, which was the local match for the Low-Income Housing Tax Credit funding award that was secured. The Cottage District, Workforce Housing Infill Redevelopment project had a balance after they moved money for acquisition of the 133 NE Fourth Avenue, which is a property adjacent to the Cottage District Project. Staff had previously approved $500K for Palm Beach County Housing Authority acquisitions during their auctions, and the Sara Sims Amphitheater had no existing balance because the $150K the Board obligated to the City through an ILA, is now in a purchase order and is not available to reallocate. The other projects were the 508 E. Boynton Beach Boulevard project; the Boynton Beach Boulevard project, which was the improvements from 1-95 and so on. The Board could allocate $6,225,378 in any way they see fit. Staff provided a draft allocation of funds they see based on priorities staff or the Board noted. Whenever there is no funding for an acquisition of a project, such as with 217 N. Seacrest, it is a decision the Board can make whether to begin to save for that acquisition or put the entire amount towards the closing. Mr. Simon thought the rest was self-explanatory. He noted the Downtown District line, could include the potential acquisition of the 511, 515 and 529 E. Ocean Avenue properties. The amount of money discussed was $3.2M and the budget would have to be arranged differently. Staff met with their bank representatives and they are confident that the CRA could secure a short-term loan, regardless of the lease or property value. It is based on increment revenue. He knew there was discussion about Mr. Oyer saying he would hold the mortgage, which he and Ms. Shutt did not support. He thought it was better to use a lender at a very low rate. The CRA can secure a loan under five years for property acquisition. The rates are very favorable. Chair Grant suggested reaching out to the banking community in the CRA District first, see what bank makes the best offer and try to get three offers of loans for two, three and five years so the Board can decide in September which offer and method they will use to finance the acquisitions. The three main acquisitions on the books total almost $6 million for the 508 E. Boynton Beach Boulevard, 217 N. Seacrest Boulevard, and the 511, 515 and 529 E. Ocean Avenue properties as they fit the description in the CRA's Comprehensive Plan. It was noted the Board needed to allocate the budget for 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 10, 2021 the Pirates Fest. Attorney Duhy suggested approving the budget and amending it at the next meeting. This way, funds for property acquisition can be used for 217 N Seacrest and Ocean Avenue. Board Member Penserga asked staff which project funds would relocation services fall under. Mr. Simon would identify acquisition funding needed to create a program or category of funds. Ms. Shutt explained the Board wrapped the relocation funds together as part of the purchase agreement with the Community Caring Center. Motion Vice Chair Hay moved to approve the budget. Board Member Penserga seconded the motion. The motion passed unanimously. B. MLK Jr. Boulevard Corridor Commercial Redevelopment and Affordable Multi-Family Rental Apartment Project Update Ms. Shutt explained this item has been before the Board several times. She conveyed the Board entered a Purchase and Sale Agreement with Centennial in December 2019. Centennial finished all the work under the entitlement process and received the 9% tax Tax Credit funds from the State, however, due to the pandemic, issues arose, more particularly with the construction pricing. Now Centennial is looking at buying out the contracting and subcontracting services they had identified. There was money set aside for an 8,200 square foot commercial space to serve the neighborhood, which was not included in state funding. The CRA and Centennial will negotiate the price of the construction for activation of the space. In the development proposal for the 125 rental units, there was a construction overrun. In mid-July, Centennial approached staff about concerns about the project short fall. Staff worked with them, but did not get a lot of information until last week and staff has not yet reviewed it . Elizabeth Rogue, Mr. Herbert and Mr. Swezy will make a brief presentation. In summary, Centennial Management indicated to staff there is a $4.9M shortfall due to rising construction costs and unexpected infrastructure issues required off site. Staff feels it is a little less. There was $1.9M was allocated for commercial, and Centennial got a $3.11M shortfall. Section 20 of the Purchase and Development agreement sets aside what they can do and Section 19 allows the Board to provide additional monies with just cause. Staff asks the Board to allow them to sit down and review the numbers, because it will facilitate development in the area, but also because there needs to be cost sharing on the part of Centennial. Motion Board Member Romelus suggested hearing them, but moved to table the item to let staff and Centennial meet to review the items. Elizabeth Roque, Centennial Management, 7735 NW 146th Street, Miami Lakes, explained currently they are getting ready to close on the community in mid-September. It has been a challenging time as they never anticipated cost overruns. The initial building 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 10, 2021 had intricate details giving the building a Floribbean look. When they received the documents back from the architect and started bidding, they could ascertain the cost would be too high. They started to value engineer and reviewed structural and electrical costs, as they would not impact the aesthetics. They are looking for ways to reduce costs and they changed the building slightly. Brian Herbert,. 1311 Newport Center Drive, explained the initial concept was a conceptual design, coming through the construction document process, they streamlined the building to make it cost effective from a construction standpoint while keeping the architecture unique and aesthetically pleasing. Changes they made were items that were not very noticeable. The window manufacturer was reviewed as were the railings. After value engineering, a photo of what was submitted to permitting was viewed. They were able to bring the cost down to $3M and it does not damage the design intent. The large mansard roof is aesthetic as well as the brackets. It is a quality design that will provide rain coverage. It creates natural screening for lights coming into the units and air conditioning units. Mr. Simon commented they were all architectural. It changes the look from Key West. They are at $1.2M in total for each building to have that look. The other costs were due to COVID and due to the rents being decreased and their first mortgage was lowered by a million. The cost of materials increased from 20% to 50% depending on the project. She took her numbers last year from the Ocean Breeze development and added 30% which gave them $1 M in material costs as an increase. They had a meeting with Utilities who were asking for things that need to be done in the road. In the beginning they had agreed to provide $100K to improve the sanitary and sewer lines and others. Then they had another meeting, and there was much more they wanted to do for the MLK Corridor, which is $728K, and Centennial Management had no clue with what they wanted to do on the Corridor. That is separate from the original $3M cost overrun Board Member Katz asked what the cost overrun would be if the original accents were used. She did not know, but when they saw the bids coming in for the large windows, they were too high. They wanted to keep the integrity of the design, but had to scale it back. They were able to find savings with value engineering regarding structural items. Lewis Swezy, Centennial Management, explained they value engineered the hallway venting which saved $20K to $300K. They stacked the electrical runs on top of each where they saved $100K. He advised he wanted to keep the beauty and integrity of the neighborhood in place. Board Member Katz favored the original exterior as it had a more distinctive character to it. Ms. Roque explained the biggest difference was the windows are lot bigger and the value engineered plans were the plans submitted to the Building Department. Chair Grant thought the balconies were an important feature that should be preserved. Ms. Shutt explained the scoring and treatment of the walls could add more details. Mr. Simon noted in the initial drawings, there are things on the street level, whether Bougainvillea or colors on the streetscape that draw one's eyes away from whether there is scoring on the building. It looks very inviting and attractive. When it was represented, they just provided the raw building. Chair Grant was not concerned with 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 10, 2021 value engineering, it was the Florida Housing Finance Corporation, mandated the rents had to be reduced. Chair Grant thought the City should help out. The CRA's responsibility is they will collect rent for the spaces regardless of the rates. They did receive a lot of comments about business ownership of their buildings or locations. He asked if the Board or Centennial would consider a condominium association so business owners can own their bays . The City wants at least one bay for the Neighborhood Officer Program. Mr. Swezy responded it has great intent, but it would destroy the financing. Chair Grant asked, regarding the commercial areas, if future CRA's have the ability to have any equity ownership. Mr. Swezy advised he would work with the CRA to get triple net out of the commercial space, but it was not their intent to make money from the commercial area. Chair Grant thought they should discuss it with some of the money they will borrow because there is a deadline. Board Member Hay noticed most developers put aside 10% and asked why they put aside 4% and why nothing was put with the original number. He thought it would cut down on the $1.9M. The original number they used was$158K inside the $1.9M. When they listed the real numbers and allocated where the money is supposed to go, it is included in the category of "Other". Things like permits and builder risk insurance are not itemized on the form. Chair Grant questioned how the developer fee goes into the project for the total cost of the project minus the land acquisition. The State allocates a 16% developer fee. It comes out at the end of the project with the last equity installment. It is deferred and goes into the construction and development of the project in the beginning. It goes to a subsidiary owned by the same principals. Chair Grant asked how they could use some of that to help with the cost overruns. Chair Grant suggested at the City Commission meeting next Tuesday, they discuss this with the Utility Department to help figure out what the extra $700K they were asking for was. Mr. Swezy explained at the time of site plan approval, that is what they budgeted. Chair Grant thought they could use the TERFA agreement to help pay Centennial back. There were no objections to using the TERFA, but the Board will not make decisions tonight. He wanted to direct staff to work with them to find out what to do with money from staff. Ms. Roque commented it was a fact-finding mission, and asked if the commercial side of the $1.9 was solidified and will it go to the cost of commercial retail space and learned it would. They approved that as part of the budget plus the extra match, plus, the $625k for residential. Anything else would be discussed next month. Centennial will continue value engineering where it would not impact the aesthetic of the building. Vote Board Member Hay seconded the motion. The motion passed unanimously. C. Cottage District Infill Housing Redevelopment Project Update of Discussion and Contract Negotiations with Azur Equities, LLC 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 10, 2021 Ms. Shutt explained this item was a continuation from last month. The Board had issued an RFP in August 2020, and reviewed and ranked the responses. The top two ranked respondents withdrew. This is the last remaining proposer with a viable option. She noted Azure Equities has very little single-family and workforce housing experience, but does have experience with mixed-use developments, townhomes and multi-family projects. Staff was given direction to work with them to improve the design and ensure their financing structure, ability to hire local contractors and address the Boynton area median income plans were feasible. After working for four months, staff has not received much information or anything more substantive to ensure the design is a quality design, is affordable and has a maintenance of affordability, so the public investment in the project will be passed forward to the next purchaser and the homes will not be flipped in a short amount of time. Staff advised the investment does not work out. It is not the right type of development proposal for the site, and there is not enough demonstrated capability and financial as well as supportive documents based on past negotiation attempts. It is a risk that is not recommended by staff. One option is to reissue the RFP as there has been interest, but due to negotiations, staff and the Board cannot entertain any of those options. There are also options for staff to explore if the CRA itself can do the project. Franck Gotsman, Azure Equities, 2875 191St Street, Aventura, Florida, explained the guideline they received was to remain with the Area Median Income (AMI.) The original design had to be modified because townhomes have to be on the inside streets. They tried to work with the Building and Zoning Departments to ensure they have a design and site plan that is appropriate. They are working with local people from the beginning, and already conducted value engineering with the idea to keep the homes within the AMI. He was unsure what else was required, they are more than able to do this. In terms of single- family homes, they have not constructed as many homes as others. He believes the development is more than viable. He commented if there is more information required from them they would make it available. They have not had a lot of communication with the Building Department and they have tried to reach the Zoning Department. They are available and they are confident what they are proposing is more than viable. Chair Grant commented the issue he has is the Building Department changed things up from the design and the Board was not given an opportunity to advise Mr. Gotsman that this is what they would rather have and the City can change their Codes regarding infill of the project. He is not happy that they are going from 39 units to 34, and it is almost like they are having duplexes instead of townhomes. Based on the new site plan, the playground is not in the northeast corner as proposed. Mr. Gotsman advised it was suggested the park be moved inside to be easier for the HOA to manage. They have been trying to comply with what they were told to do. Chair Grant suggested giving Azur an extra month. If there is something they are not happy about that the City is telling them, they can do a work around. If the HOA owns the playground, they can prohibit other people from the community from using it, and it was not something he supported. If the HOA owns it, they would be liable for the kids that are on it, they could put a fence and lock on it and give a key to the HOA. That was why he wanted the park in the northeast corner. Mr. Gotsman explained Parks and Recreation will not be happy because there is 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 10, 2021 a park just to the north. Chair Grant explained the issue is they do not want the kids to cross Boynton Beach Boulevard or Seacrest if they are under 10 years old. It is the Board that gives final approval and not the staff. Board Member Hay commented he does not feel good about the whole thing. The community wanted single-family homes, and building single-family homes are not Mr. Gotsman's forte. The CRA had several developers drop out for several reasons. He thought they were going down a bad road that is not a good match. He noted the developer was not happy about some things and the Board was unhappy about some things as well. He would support parting ways and starting over. Nothing has occurred in four months and he did not think it was giving the people what they want. Board Member Romelus disagreed with Vice Chair Hay's comments. Looking at the team Azur put together, she was perplexed why staff has not seen what they are looking for. They have a team that can do something. She did not want to start over and wanted to find a middle ground. She also disagreed with some of the changes made by City staff from a zoning and building perspective the developer would have to make and none of the changes came back to the Board. She wanted a detailed update of how things changed and how they work. She. noted two other developers willingly dropped off because they were unwilling to meet the Board at the price point the Board wanted. Ms. Shutt explained staff is concerned on the financial end. The document was dated August 3rd and staff has had less than a week to review the documents. Mr. Simon has been working with Mr. Gotsman, and staff enlisted the help of planning and zoning staff. There are some costs that should be looked at, but the main concern is his financing plan. The projected uses and sources in the meeting materials show construction costs were $6M. The development cost is $1.7M. The total cost is $11 M, but the land value is not listed. The land is donated and should be subtracted from each unit. In the proposal, the scheduled price of the home does not include any reduction in the land costs, he is receiving for free. She thought after four months, it is difficult for staff to determine the cost benefit to the public and CRA. She noted some of the costs based on the valuations, and his actual sales revenue. The difference between the sale cost and the financing cost is exactly the same as what the CRA is contributing, which is $385,825. She thought Mr. Gotsman was not making any money. Additionally, in the proforma, he was putting $1 M in equity, and he would only get$572,335 in profit. The numbers did not make sense to her and she thought they would not work. There are some cost gaps, which the CRA is willing to look at, but it has to make sense, and right now it is does not. Mr. Gotsman explained they responded to the request a few weeks before, and they tried to put everything together including a development agreement. There is still a lot for them to do in terms of design and to make their soft costs, expenses and engineering costs work on the final product, and they would need some type of agreement with the City to ensure they were not spending money without out any real revenue. They did not list the land value as a cost. The idea was to keep the cost of the homes as low as possible. If he included the land and divided it by 35, the price is there. He could always add it. It is 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 10, 2021 one way to do the accounting. They want to be realistic how they can get to the numbers the CRA and City wants in terms of pricing. There are some things they can save on. There is also an opportunity for people to decide which house they prefer in terms of square footage. There are smaller and larger homes. They could estimate the sales costs and reduce it and pass on more savings. It is possible to show them. They wanted to use the lowest possible numbers for the price of the home. The most important thing was a development agreement that would not put pressure on them in terms of the ceiling in which they would build and sell the homes. They would set it up, build a few homes, people come and buy them and then they will build more. They can answer the Board's question. Board Member Romelus was in favor of allowing another month to see if Azure can work on the numbers as a last-ditch effort. If there are no agreeable terms by next month they can issue another RFP. Ms. Shutt applauded him for trying to engage local contractors. She commented now that they have the expertise of Randall Construction and the Community Development Corporation (CDC), he should engage them and use his resources. Before they could look at a development agreement, they will need the prices and the timelines. He wanted to be perfectly clear what they wanted in the site plan. Only single-family homes that can back out to the side street. Staff can work with them. This is an IPUD and lot sizes are flexible. The RFP specified where the playground would be, which was the northeast corner. Staff will ensure the product that is proposed complies with what the Board wants. Board Member Romelus noted there are internal communication issues. She put the onus on CRA staff to hand hold Mr. Gotsman through the process. Chair Grant explained the original site plan showed the town homes on the outside and single-family homes on the inside, but staff said to reverse it. The Board wants the density of the greater units. The park will be a neighborhood park. Part of the agreement is the HOA will help fund the park. Motion Board Member Romelus moved to table the item to the next meeting. Board Member Katz seconded the motion. The motion passed unanimously. D. Project Update for the Purchase of the Properties Located at 511, 515 and 529 E. Ocean Avenue Ms. Shutt advised staff received direction to purchase the property for $3.6M and has been working with the property owners to obtain the content of the leases of the existing tenants and work on the terms of the Purchase and Development Agreement. There are some issues which the owner would like to protect the tenants, in terms of disclosure of some of the information. Mr. Oyer will try to provide redacted leases, so staff can better define the terms. Staff met with the owner and another meeting is scheduled for Friday. They hope to bring back a draft agreement by the next meeting. 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 10, 2021 Staff also needed direction on financing and suggested the Board look at the transaction as a straight sale as opposed to the seller holding the note. Attorney Duhy agreed more information regarding time, amount, and renewals was needed to ensure they maintain the tenants and to address relocation. The Board needs to understand the terms the tenants are currently operating under. Confidential information would be redacted, but the general terms are important to bring back recommendations how to protect the existing tenants. The sellers understand that. The redacted leases are the right way to proceed and create a path forward. It will allow staff to move quickly and permit closing within the time frame directed by the Board. Mr. Simon noted the owner wants to close by the end of the year and has to conduct due diligence. Chair Grant commented the CRA will have to decide after purchasing whether to have agreements regarding relocation of the current tenants or to have longer-term agreements. Attorney Duhy explained the CRA is in a different position than a private owner and rental income is not the end goal. The CRA is not in a position, not knowing the lease obligations, to make recommendations as to whether they want them to take on tenants or not. The CRA has discussed ways to address those issues in the Purchase and Development Agreement. If there is some loss of income, it could be addressed in the contract. Chair Grant wanted to keep Hurricane Alley as part of the purchase if the CRA creates a subsequent lease, or includes it in the bargain when the CRA buys the property. Attorney Duhy recommended the CRA create a new lease through the CRA, as they can ensure it has all the contingencies they need to include as a public entity, which a private owner would not need to include. It would be a functional and not a substantive change. Chair Grant thought they could leave the historic and local value of Hurricane Alley. Attorney Duhy explained leaving the business there is within the CRA's purview. Motion Board Member Katz moved to direct staff to investigate financing a project along with additional funding, if needed for other acquisitions, and to continue additional negotiations of the terms and conditions. Board Member Romelus seconded the motion. The motion passed unanimously. E. Consideration of Second Amendment to Contract with Lewis, Longman & Walker, P.A. (LLW) for Legal Services (Tabled 7/13/21) Motion Vice Chair Hay moved to remove the item from the table. Board Member Penserga seconded the motion. Attorney Duhy explained there were no major changes. The CRA is an important client to her firm. They will dearly miss Mr. Simon, but they are very excited to work with staff. They try to keep their prices as low as possible. The last raise was four years ago. 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 10, 2021 Vote The motion passed unanimously. F. Consideration of the Economic Development Grant Program Guidelines and Applications for FY 2021-2022 (Tabled 7/13/21) Motion Vice Chair Hay moved to remove the item from the table. Board Member Romelus seconded the motion. The motion passed unanimously. Ms. Nicklien explained after reviewing the program, staff requested clarification regarding the eligibility of offsite cleaners or laundromats. Currently, the use is not classified as either eligible or ineligible for funding assistance. If the Board wants to consider the use as a Tier II business, the business would be eligible for 50% of their monthly base rent up to $1,250 a month or whichever is less. Additionally, due to priority projects discussed tonight, staff needs direction the ability of a business to request an additional six-month extension at the completion of their first 12 months of business. This year, approved recipients could request the additional six-month extension by providing an outline of their first year of business rents, thereby having the total rent reimbursement period be 18 months. Staff recommends limiting the extensions.to a 12-month period to help more businesses. There were no changes for the Commercial Property Improvement Grant programs. Chair Grant thought laundromats and dry cleaners was part of Tier III, but learned under the rent grant, there are only two tiers for new laundromats coming in. These would be for coin operated laundry and dry cleaners. Motion Board Member Romelus moved to approve them being a Tier II business. Board Member Katz seconded the motion. The motion passed unanimously. Motion Board Member Romelus moved rent reimbursements will return to a 12-month only program. Vice Chair Hay seconded the motion. The motion passed unanimously. Motion Board Member Romelus moved to adopt the changes to the guidelines for the Economic Development Grant program the Board previously mentioned. Board Member Penserga seconded the motion. The motion passed unanimously. G. Discussion and Consideration of the Interim Executive Director of the CRA 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 10, 2021 Mr. Simon explained they were asked to bring back information for consideration of elevating Ms. Shutt to Interim Executive Director as his replacement as Executive Director. If the Board supports her, they can bring back a contract at the next meeting. If making Ms. Shutt interim director immediately, the motion could be pursuant to the same terms and conditions as Mr. Simon's contract. They could then bring the contract back to the Board at the next meeting. Board Member Katz favored option 1, to name Ms. Shutt officially as Interim Director and direct Counsel to bring back a contract agreement. He thought when there is talent in the house, unless you have a reason not to support the person, there is no need to go outside. He thought Ms. Shutt was supremely qualified and supported not reducing her salary as she would receive the same pay and benefits as Mr. Simon, based on negotiations. Chair Grant asked for a Motion to approve Option 1 Motion Vice Chair Hay so moved. Board Member Romelus seconded the motion. Ms. Shutt thanked all and advised she had the best mentor and best staff. The motion passed unanimously. Attorney Duhy asked if she should be moved immediately up to the contract terms Mr. Simon has in the position of Interim Director and learned she would. 17. New Business A. Consideration of Award and Contract for Responses to the Request for Qualifications and Proposals for the Management of the Boynton Harbor Marina Theresa Utterback, Development Services Manager, presented the item. The current contract with Waypoint is due to expire October 1, 2021. They issued an RFP/RFQ on June 17, 2021. Responses were due July 20th. Three responses were received and are listed. Staff reviewed the responses, and a sufficiency checklist was provided. She also provided clarification on the fee structure. Staff weighed in on the fee structures and with their experience, ranked Waypoint first, Oasis as the second choice, and Mathew Spain as the third choice. If using Waypoint, based on their experience and him running the Marina, fuel dock and the tenants, he did an excellent job. His annual fees were the least out of the three. Chair Grant asked for a motion to approve the recommendation of CRA staff. 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 10, 2021 Motion Board Member Katz moved to approve. Board Member Romelus seconded the motion Jan Volker, 421 S. Lakeside Drive, has been involved in Palm Beach County dive tourism for over 20 years. He announced management has been doing an excellent job with the Marina, but there is an issue with dive tourism there, as there are arbitrary rules regarding no more than 15 minutes for loading and unloading of dive tanks and gear. The dive boats are not in anyone's way when moving tanks from the truck to the boats, but they need more time and it endangers the safety of the divers. Divers are getting resentful they are rushed out. He advised the divers are very affluent people that spend a lot of money in restaurants and the area. He suggested changing the arbitrary rules to a 45-minute period or investigate the matter as there is no problem with traffic. Mr. Volker advised this usually takes place in the morning, and it does not restrict anyone. He thought it was something no one thought about before and now might be a good time to think about it. Mr. Volker was not a Marina tenant, but was speaking for Splashdown Divers. Chair Grant thought 30 minutes might be safer and then get a report next year to see if additional time is needed. Mr. Simon explained this has been ongoing since the slips were renovated. There is a complication of life on the docks with captains getting extra time. He thought the Board could allow the dockmaster more time for this issue. The CRA does not get complaints, on a regular basis, that the dockmaster is running them off, but there is an ongoing effort to keep the Captains and tenants that for years would fight the decision to move their own vehicles out of the loading and unloading area. Staff has done all kinds of studies to justify the decisions they make, but the Marina was redesigned. This is the first time an issue is being brought to the Board. He thought Mr. Smith would be happy to be flexible. Half an hour to load and unload only, then move to a secure parking space. Chair Grant commented they can discuss changing the sign to 30 minutes for loading and unloading only and giving Mr. Smith the flexibility and report back in 30 days at the next meeting. Board Member Katz agreed. Mr. Smith runs the Marina and can report back. (Board Member Romelus left the dais at 8:07 p.m.) Dave Collin, owner of Splashdown Divers, advised he has been there for 40 years and no one has complained about the parking before. He tests the tanks to supply the proper ratio of gas. He cannot do it in 15 minutes and he has informed Mr. Smith. Mr. Simon explained Mr. Collin was conducting another type of business from the back of his truck. It is not necessarily divers being shewed away by the manager. If there is an unusual business need that needs to be adjusted for, the tenant should make the request. He is there at 7:30 in the morning and brought this to Mr. Smith's attention Brian Smith, Dockmaster, explained with parking, the contract specifies 15 minutes. He suggested they try 30 minutes for the divers. The other boats may not need as much 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida August 10, 2021 time. It is in the contract and on the sign. He would try 30 minutes for the dive boats owners only. (Board Member Romelus returned to the dais at 8:10 p.m.) The motion passed unanimously. B. Discussion and Consideration of the Request from City for the CRA Owned Parcels located at the NE corner of NE 3rd Street and NE 9th Avenue Mr. Simon presented the item. The item is a transfer request from the City for parcels the City had originally purchased that were transferred to the CRA years ago. The parcels were intended to provide a relocation site for the Community Caring Center, which did not occur. The City has a need for the property to be under their ownership in order to have the ability to dispose of it. Motion Board Member Katz moved to approve. Board Member Hay seconded the motion. The motion passed unanimously. 18. Future Agenda Items A. 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 B. Discussion and Consideration of a Letter of Intent from the Barber Family Companies LLC for CRA-Owned Property Located at 211 E. Ocean Avenue C. Ocean Breeze East Affordable Multi-Family Rental Apartment Project Update 19. Adjournment There being no further business to discuss, Chair Grant adjourned the meeting at 8:13 p.m. Catherine Cherry Minutes Specialist 18