Loading...
Minutes 10-12-21 Minutes of the Community Redevelopment Agency Board Meeting Held on Tuesday, October 12, 2021, at 5:30 p.m. Online Via GoToWebinar and In-Person in the City Hall Commission Chambers 100 E. Ocean Avenue, Boynton Beach, Florida PRESENT: Steven B. Grant, Chair Thuy Shutt, Executive Director Woodrow Hay, Vice Chair Kathryn Rossmell, Board Counsel Christina Romelus, Board Member Ty Penserga, Board Member Justin Katz, Board Member (Arrived 5:55 p.m.) 1. Call to Order Chair Grant called the meeting to order 5:32 p.m. 2. Invocation Vice Chair Hay The invocation was given by Vice Chair Hay. 3. Pledge of Allegiance The members recited the Pledge of Allegiance to the Flag. 4. Roll Call A quorum was present. 5. Agenda Approval A. Additions, Deletions, Corrections to the Agenda Chair Grant noted Centennial Management was present, and requested hearing Item 17A after Public Comments. B. Adoption of Agenda Motion Board Member Romelus so moved as amended. Vice Chair Hay seconded the motion. The motion passed unanimously. Meeting Minutes Community Redevelopment Agency Board Boynton Beach Florida October 12, 2021 6. Legal A. Project Update on the Purchase and Development Agreement with Ocean One Boynton, LLC for the Ocean One Project Kathryn Rossmell, Esquire, Lewis Longman and Walker, summarized the CRA is in discussion about the status of their compliance with the Purchase and Development Agreement regarding the Ocean One project. Bonnie Miskel, Counsel, representing Ocean One, was present virtually and announced they sent in a proposal for the Board to consider. Attorney Miskel announced building a park was more challenging to accomplish. At meetings they attended, they talked about and proffered funds for a temporary plaza area, but they could not come to terms on the amount. Her client decided to move forward and build a plaza, which included benches, walkways and landscaping. They applied for a permit in May as contained in the agreement; however, the City informed them they would have to apply for a new site plan for this temporary plaza, which would wipe out the underlying site plan for 231 units plus retail. This was not acceptable to them as the plaza is temporary. There were others items and lighting plans that were not part of the agreement the City wanted. Attorney Miskel noted they applied for exactly what was in the agreement. She noted, in the City's defense, the City does not have a process to implement anything other than a site plan and her client does not want to lose their site plan entitlements. Attorney Miskel commented the pricing increased 30% or more, and the total for the improvements, plus the irrigation, which was not required, was $39K. They tried to go back to staff to get the plaza approved without losing the site plan and they struggled as it is not the way they do business. It made more sense to proffer whatever the costs are for the permit, and give it to the City or CRA for a permanent park that will be used for a benefit other than sitting on the north end of the site that hopefully will be developed in the near future They are in a stalemate as they did not want to lose a valid site plan and they have no valid recourse. The City wants to work with them, but is restricted by the Code. Attorney Rossmell advised the staff can discuss what is best for the CRA and they could include an amendment to the agreement for the payment to be made in lieu of this item or the Board could seek a notice of default. She recommended adhering to the staff recommendation. Thuy Shutt, Executive Director, explained it depends on what kinds of amenities the Board wants to see in the temporary use. Typically, a small passive park can range from $40K to $150K although they are not in the business of building parks. It was recommended they ask City staff and it depends on what the parties agree on, whether the Board wants sidewalks or benches Attorney Miskel, referenced paragraph 18, which specified what was supposed to be on the property. She read, benches walkways and landscaping, which was the drawing 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach Florida October 12, 2021 they submitted with the permit app. They hired vendors to do this and the cost was submitted with the permit, which is normally required. The issue is they do not have a way to get a permit for what was in the contract. Board Member Penserga thought it was non-sensical to build something when they know it would be torn down. It was not his preferred outcome and thought the best thing to do is take the offer. Board Member Romelus requested confirmation the site plan they currently have would require a major site plan modification to install the park, and the developer would have to go through everything needed for a major site plan modification. This puts the Board in a position of they do not know when they will get a permit. Ms. Shutt agreed the issue is the minimum requirement for a park to be constructed at this site. To do so, the City needs minimal site plan requirements and documents showing trees and amenities such as benches and sidewalks that are included. Mr. Camalier needs a site plan approval with all the requirements to build a park. It is an issue with the minimum requirement and in doing so it would supersede approval for the mixed-use project. The developer is seeking another avenue. Their offer is payment in lieu of completing the condition of building a park. The Board could accept it and decide what amount it will be or the Board could make a counter offer. Board Member Romelus asked if they could build a park on that parcel is the applicant wanted to. Ms. Shutt responded it would be a major site plan modification because there is a building proposed there. He could accomplish it, but it would require a great deal of modifications, even if phased Board Member Romelus questioned if the Board proposed something that could not occur. Chair Grant summarized if the developer went through with the project as planned in 2017/2018, they would have a building. If they did not build the building in two years and did not get a building permit, then they would be required to build a park. They submitted a permit application for the park, but staff stated they need a major site plan modification to build the park, and would lose the current site plan for the mixed- use project. Board Member Romelus thought the choice was clear they were always of the mindset they wanted a development constructed, not a park. They are on the way to getting a building. The applicant intends to work towards it on the 115 property. She was still disappointed waiting for something to happen and would accept the proposal, but it was not really the end result she wanted. Vice Chair Hay agreed they do not need a park there that will be torn down later. Attorney Rossmell explained the developer did not request an extension, only their offer of$39K to remove that condition of the agreement. The site plan development agreement was viewed. Board Member Penserga asked about the legal status of the applicant if the Board accepted the offer. Attorney Rossmell commented the Board has not noticed them they 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach Florida October 12, 2021 are in default, and there is nothing suggested tonight to take that position. It would remove a condition of the existing agreement, amend the agreement and some associated documents. If they accept the offer, he asked if there was any other recourse or time line moving forward. Chair Grant stated one of the reasons why he added it to the contract was leverage they want the project built. If they accept the $39K they have no leverage and it is not fair to the CRA. What is fair to the CRA is the project is built as soon as possible as per the Purchase and Sale Agreement that they will diligently pursue. He asked what is diligently pursue? If they accept $39K, then nothing could ever be built there, which he was not okay with. In another year or two, the $39K that was given is spent, and they still do not have the building that was built on land that was sold for $10. The Board can accept the $39K and offer another extension or something in that sense, they are still negotiating with the developer on a mutually beneficial aspect. If the building was constructed and the Certificate of Occupancy is acquired in 2021, the CRA would receive hundred of thousands of dollars of taxable revenue included in the annual budget. (Board Member Katz arrived.) Chair Grant would enter into a new TERFA agreement to get the project built. He does not need the full $39K, but wanted to know what is going to happen. Board Member Penserga asked what would occur if the Board accepted the offer. Chair Grant stated the two options are to direct the attorney to issue a Default Letter to say the Board is not happy with the current situation and to have the developer come back with a timeline otherwise they will lose their site plan. He suggested they make a counter offer of$20K that gives them an extension until 2023 to get a building permit and in addition to the $20K and the deadline of January 2023, to get a building permit. The Board would also be updated every six months to see where they are because he believes they need a TERFA agreement and he wants to help them build a parking garage as opposed to the parking spaces be donated. He supported creating an Enterprise Fund for parking at Oceanfront and Harvey Oyer Parks and if they would get a building permit in the next six months. Attorney Miskel explained her client, Mr. Camalier, has a buyer and he will pursue the RFP and come forward with his own development on the east side. It will have a new site plan. If they are only going forward with their side of the street, the buyer wants to do both ends of the block and the only specific site plan was for phase I. If there are additional lands added, then they are looking at the design of the building She is uncomfortable saying development would be any less than two years because if they design it, there are a lot of variables. Attorney Miskel reiterated they have a valid site plan, and if nothing happens with that plan they do not want to loses those rights. She agreed a temporary park is a waste of money, but they are obligated to do that under 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach Florida October 12, 2021 the contract. If they can comply with the contract, they do not need an extension and they will build that plaza until they take it out and build over it. She not think two years was realistic. Chair Grant commented it is now October and they have given the developer months and months to make another offer or build a park. Now they are offered $39K with no restrictions for land that was given for $10. He wanted to offer $20K with a January 2023 deadline. The extension to build a park will be in place for the next CRA Board and the CRA will have received compensation for promises made in 2017/2018. They do not want the full amount for the park, because they want the requirement intact in the future because they do not feel $40K is adequate for removing all restrictions on the property. If the developer wants to make an offer to remove restrictions, it would be a six-figure amount. They would request an answer from the developer at the next CRA Board meeting. Board member Katz understood the contention is paying $39K would seals the deal and there was no obligation ever again. Board Member Penserga initially was willing to accept the offer because it did not made sense to build a park and then tear it down. Attorney Miskel had indicated they spent a lot of money on the site plan which was leverage. He asked if they accepted the offer of $39K what else can hold them accountable to the project and the answer was none. Board Member Katz noted they do not have a tax agreement with the CRA. The project was approved. He assumed with TERFA gone, there could be leverage in the future. He was unsure the park issue was valid. The offer is now $40K. He did not see an objection because they will come back for millions. Chair Grant commented due to the sales of 500 Ocean, One Boynton and Seabourn Cove in the past two years, the reason why they want the site plan, they may not need it because the metrics of the value of rent in Boynton Beach has increased. Chair Grant thought they may not need the TIF. His goal was not to lose leverage and if they do, it is a six-figure amount because this is something the CRA is losing, because they were expecting TIF, but that does not need Children's Service Council, Sanitation and Utility Departments would receive additional funds. He favored offering $20K for an extension to January 1 st of 2023, so the CRA would know in January if they have the permit or not and then they could discuss it because they understand the value of the site plan as is, or the developer makes an offer for the land that was given that is appraised for half a million dollars in the six-figure range. The CRA Board can negotiate this issue. Board Member Penserga inquired if they accept the offer and there is no future leverage left if they would be giving them the land almost for free. Chair Grant responded it was not; it was $40K. The TIF Agreement and the building permit both had an expiration date and they both expired. The purpose of giving the land for that price was to get the project built. Neither party would be happy, but they would understand the Board is doing this so something gets done sooner rather than later. Board Member Penserga would support the Chair's position of going for the extension for $20K, but questioned if 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach Florida October 12, 2021 the developer did not accept the proposal, the recourse would be to issue the notice of default. Chair Grant responded it would or to remove the park altogether for a six-figure amount. Vice Chair Hay commented they have an RFP for the west side. Chair Grant stated there were three options: to let the developer know he will get an extension to 01-01-23 to get the building permit. To offer six figures to remove the restriction and if neither is acceptable, the CRA will issue a notice of default. If the CRA prevails in the law suit to get the park built, they will receive attorney's fees, or if the developer prevails, they get attorney fees, but the CRA Board would not have waived the requirement to get the park or plaza built. Motion Board Member Penserga moved to approve as stated. Vice Chair Hay seconded the motion. The motion passed unanimously. 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 had no disclosures. Board Member Romelus had no disclosures, but got a text from Brian Fitzpatrick about his decision to rescind his Letter of Intent. Board Member Penserga had no disclosures but did receive the same text from Mr. Fitzpatrick. Vice Chair Hay had no disclosures. Chair Grant spoke with Mr. Harvey Oyer, got a text message but no conversation from Mr. Fitzpatrick and spoke to the American Academy wanting to get flex space from the Ocean Breeze East project. American Academy is a non-profit working out of Imagine Chancellor School who helps with afterschool programs. They want a safe space to learn, slightly different that the programs at the Carolyn Sims Center. Chair Grant congratulated Bonnie Nicklien, CRA Grants and Project Manager, on the birth of her daughter, Whitney Grace, and introduced Vicki Curfman filling in for Ms. Nicklien. 8. Announcements and Awards A. 2021 IEDC Award Announcement Ms. Shutt announced the Boynton Beach CRA received a Silver Award from the Economic Development Council. It was given at the Annual Conference in Nashville, which she attended. It is a prestigious award competing with municipalities having from 25K to 200K residents. Attachment two listed all the award winners from the bronze 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach Florida October 12, 2021 medals to the gold medals. They competed with private sector non-profits and large- sized municipalities and Ms. Shutt was honored to represent the CRA. The CRA program was one of the few that addressed COVID relief initiatives, business expansion and retention initiatives. It was great to receive the award among all the international applicants. B. The 10th Annual Boynton Beach Haunted Pirate Fest and Mermaid Splash Project Update Mercedes Coppin, Business Promotion and Events Manager, was excited to bring back the event weekend from 11 a.m. to 8 p.m. in downtown Boynton Beach. They will use their original layout from Seacrest Boulevard to Federal Highway on Ocean Avenue and they will be activating the amphitheater space. It is a family-friendly event with a variety of entertainment which she listed. Attendees can participate in the treasure hunt. To-date, there were 14 CRA businesses registered. Free parking at multiple locations was available, which she also listed. There will be professional parking attendants, police officers, two details for crossing guards and she has contacted the county to see if the emergency flashing light by the Fire Station could be made an active light for the event. 9. Information Only A. Public Relations Articles Associated with the CRA 10. Public Comments John McNally, Director ITS, explained how the online audience could participate in the meeting. He noted no one was waiting online to speak. Ernest Mignoli, 710 NE 7t" Street, was interested in the section called conflicts. He bought a home in October 2020 and thought he was buying into a nice family city that would emphasize families, schools, beaches and parks. He was learning there are a lot of conflicts with people with political views. The CRA has a lot of developers from all over world. He learned someone got property for $10 and he learned someone received a house on Ocean Avenue for a few bucks. He asked how developers were getting 10 houses that can be restored for $10 and then build million-dollar condos. He questioned the direction of the City. He stated he was looking at the CRA, and politically who is here, and the Mayor wants to run for US Senator Rubio's seat. He thought the City would end up looking like Delray Beach. He thought instead of building one family homes, getting schools better situated and instead of being in the top 67% of crime, he thought education, crime and conflicts was much better than building a $100M City Hall and saying we need to get in million-dollar residences, condos and businesses. No one else coming forward, Public Comments was closed. 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach Florida October 12, 2021 17 A. Consideration of a Second Amendment to the Purchase and Development Agreement to delete the Flex Space for a New Neighborhood Officer Program Office and Community Space in the Ocean Breeze East Project (Heard out of Order) Ms. Shutt explained this item is a request to consider the second amendment to the Purchase and Development Agreement to delete the obligation to provide flex space for the new Neighborhood Officer Program in the Ocean Breeze East project completed in December that built 123 affordable rental apartments. Ms. Elizabeth Roque was present for Ocean Breeze East. The CRA had a requirement for Centennial Management to have the space within the development. There were a number of attempts to find funds to build the office, but in August 2020, the Police Chief requested an office on MLK Jr. Boulevard in a mixed-use property they are getting ready to build in the next few months. This space could be used for a community use or revert back to a residential use. On October 1 St, Centennial Management issued a request for the CRA to waive the requirement. Ms. Roque will also present to the Board, project close-out data including the number of residents served and how many jobs will be provided to the Boynton Beach business. If the Board was interested in pursuing the request, there are two options: amend the original Development Agreement to eliminate the requirement and amend the MLK Purchase and Development Agreement to ensure there is an accommodation for the NOP Office there. Elizabeth Roque, Centennial Management, explained they were asked how many people from Boynton Beach were hired. She responded RS Construction hired the following subcontractors for the Ocean Breeze Development, who were Ridgeway Plumbing at 640 Industrial Avenue Boynton Beach, and Sir Electric at 1401 Neptune Drive, Boynton Beach. They also hired a local Boynton Beach resident, "Tory" who is doing an excellent job at Ocean Breeze and Centennial Management issued notices for landscapers. People applied, but she did not know if they were from Boynton Beach. Ocean Breeze East was a very successful construction project. The lease up of the 123 unit project was completed in 10 months and was 100% occupied by December 2020. Forty-six units were leased by Boynton Beach residents. The remaining tenants were from Palm Beach County, a few from Broward and two families were from Miami. The outparcel they have is being used for storage. There were some requests to use space in OBE: one was for a dance studio and another for an academy. She commented considering their request to be relieved of an obligation, she did not feel it was an obligation. They want to do something for the City. If they can put a non-profit or a dance studio there, they are happy to do so. They are not looking to make money, only to better the community. They would just have to figure out how to do so, build it out and meet that need. Chair Grant commented the CRA cannot put a non-profit there. The agreement stated they would fund the Neighborhood Officer office there. The CRA could still fund a program to go there. Ms. Shutt advised the CRA was to build it out. The building is a shell, the plumbing is there. They would need to put framing up, build one or two 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach Florida October 12, 2021 bathrooms and determine the space needs. Chair Grant wanted to ensure the CRA puts in their fair share for things to help the community. He suggested issuing a press release or information about space available for a non-profit. They like helping the youth as they do not have enough activity. Attorney Rossmell commented if the CRA proposed to remain open to fund expenses that would otherwise qualify for property development grants the CRA has, they are within the CRA mission for the project as it moves forward. She clarified If they want a condition for consideration for the movement made between the two projects, some sort of funding to help with infrastructure improvements, the Board should ask staff to do so. Chair Grant requested the CRA help with the build-out of the flex space for the betterment of the community. Based on comments from the residents, he believes something for the youth would provide the best benefit to the community. He requested they come back to request cost assistance to that space, they can move forward. Ms. Roque explained she can remove the request. Ms. Shutt commented they would want input on the cost as the last estimate it was substantial. Chair Grant requested around $50K Ms. Shutt stated originally it was $25K and $25K was moved for the NOP. It would be more, but the valuation to convert the space at Ocean Breeze was over $100K. Ms. Roque can put numbers together and discuss it at the November meeting. Attorney Rossmell asked if the Board wanted to move forward with all aspects of transferring the NOP to the MLK project. She explained there would be two amendments required. Chair Grant agreed to transfer NOP space to MLK Wells Landing project and to discuss with Centennial Management the build-out of the flex space. Motion Board Member Romelus so moved. Vice Chair Hay seconded the motion. The motion passed unanimously. Ms. Roque gave an update on the MLK Project. She advised they are almost through permitting with MLK and getting ready for closing in November. They hoped to break ground at the end of a year. They are planning for a restaurant in one of the units. Ms. Shutt would bring back terms for funding based on Ms. Roque's discussions with the architect. 11. CRA Advisory Board A. CRA Advisory Board Meeting Minutes - September 2, 2021 B. Pending Assignments Chair Grant would like presentations for one of the Florida Redevelopment Association (FRA) sessions Advisory Board Members attended. The majority of the Board does not 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach Florida October 12, 2021 attend all sessions. Ms. Shutt explained the three members will all go to CRA 101 and they could have break-out sessions. It was requested the members provide a presentation on both. Motion Board Member Penserga so moved. Board Member Romelus seconded the motion. Board Member Romelus suggested the members send the presentation to them in lieu of a presentation and thought the meetings were long enough. Chair Grant preferred they make a presentation and they can make a presentation to the other members of the advisory board in December. Motion Board Member Penserga moved to keep each presentation to the CRA Board to five minutes on one session they attended, not to be repeated by the other members to give the Board an example of what is going on in the State of Florida. Vice Chair Hay suggested the members give their report at the Advisory Board and if a Board Member wants to hear it, they can attend the meeting. They will make a presentation at the December 2nd CRA Advisory Board. Board Member Katz seconded the motion for three five-minute presentations to the CRA Board at the December meeting. The motion passed 4-1 (Vice Chair Hay dissenting.) C. Reports on Pending Assignments 12. Consent Agenda A. Approval of CRA Board Special Meeting Minutes - September 8, 2021 B. Approval of CRA Board Meeting Minutes - September 14, 2021 C. CRA Financial Report Period Ending September 30, 2021 Motion Board Member Romelus moved to approve. Vice Chair Hay seconded the motion. The motion passed unanimously. 13. Pulled Consent Agenda Items 14. CRA Projects in Progress Motion 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach Florida October 12, 2021 Board Member Romelus moved to remove items A, B, and C from the Table. Vice Chair Hay seconded the motion. The motion passed unanimously. A. Rock the Plaza at Ocean Plaza Recap (TABLED 9/14/21) Ms. Coppin stated this was their final summer event at the above on October 21St. It had an excellent turn out, live music by Paul Anthony and Reggae Soldiers, kid's activities and a spotlight of the businesses. Photos were reviewed. Individuals who completed a survey took advantage of two Boynton Beach Bucks promotions. One was a $5 Boynton Beach Bucks voucher and a $15 Boynton Beach Bucks voucher for Angel Secrets for a purchase of$30K or more. The owner there was glad the promotion was extended for her and is ongoing. In total, 39 Boynton Beach Bucks vouchers were redeemed during the event (Board Member Penserga left the dais at 6:56 p.m.) The feedback was great. There are no activities in November as they will prepare for the Holiday Board Parade. Chair Grant noted they tried to have lights on during the summer and learned humidity was not good for lights. Ms. Coppin advised when the cooler months are here, they hoped the problem would work itself out. She spoke to the City electrician and the contractor who installed the lights and learned the lights are Christmas lights intended only for seasonal use. When moisture get it, it trips the GFI. Ms. Coppin advised she checks the GFI daily on her way to work and the businesses call her when they are out. She noted it rains a lot in the summer, but expressed confidence the lights should operate better in the cooler weather. B. Marina Marketing and Social Media Update (TABLED 9/14/21) Renee Roberts, Social Media and Communications Specialist, reviewed a presentation of the August Social media platforms. Business posts and social media were reviewed as well as social media event posts. Print advertising ads in the Coastal Angler to promote local fuel, fishing, dining, diving and boating available at the Marina were viewed. A quarter page ad was also published in the Coastal Star to promote the Goliath Grouper aggregation and encourage bookings with local dive charters. Chair Grant asked if she received any feedback from the dive operators. Ms. Roberts explained she has been in communication with them, but mostly for Pirates Fest. They had not said they could directly correlate it to the promotion, but they have had a lot of bookings recently, and so much, they are totally sold out. Chair Grant announced the City's job fair and wanted to ensure the CRA will help advertise it. He asked if the CRA could lend the feather banners to the event at the entrance on Boynton Beach Boulevard so people know where to go. Ms. Roberts agreed to coordinate with John Durgan, Economic Development Manager. B. CRA Economic & Business Development Grant Program FY 2020-2021 Year End Report (TABLED 9/14/21) 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach Florida October 12, 2021 Ms. Shutt reviewed in fiscal year 20/21, the CRA awarded $665,907 to the Economic Development program as contained in the agenda item. Also, $228,342 was in the Commercial Rent Reimbursement program and $439,990 was in the Commercial Property Improvement Grant. The CRA assisted 13 new businesses adding over 29K square feet of new retail, restaurant, industrial and professional office space in the CRA District. Attachments 1 and 2 contained further details of the businesses that were assisted and before and after photos were viewed. There is $4,575 remaining in the program. In fiscal year 21/22, the CRA allocated $556,600 for the same program. She thanked City and CRA staff and Bonnie Nicklien, CRA Grants and Project Manager. Vice Chair Hay asked if the CRA provided build-out assistance for the lock shop and ice cream parlor. Ms. Shutt explained the CRA approved a $50K property improvement grant at a 50% match. It was a combination of improvements. Vice Chair Hay also asked what assistance was provided to the Boardwalk. Ms. Shutt agreed to email the information for the interior and exterior improvements, including parking and signage. D. CRA Economic & Business Development Grant Program Update Ms. Shutt announced they just started this fiscal year, so there were no projects to review and approve. They noted there were 13 new Business Tax Receipts. They noticed several of them indicated they are in the building and construction trade and forwarded their names to Centennial to help with the project. Staff reaches out to new business with a postcard, follows up with a phone call and informs them of resources. E. Social Media Outreach Program 4th Quarterly Report (July - September 2021) Ms. Roberts reviewed the above and noted there are 64 business currently registered in Social Media Outreach Program (SMOP), 105 businesses were registered since inception of the program, three new businesses were registered this quarter and 46 businesses were contacted between January and March. Staff continued the Social Media kits for local businesses during special events. This past quarter with all of the special events with participating businesses, staff provided a unique branded social media kit with personalized digital media graphic and a digital copy of the event logo and the event poster, all links to the CRA event pages and hashtag, along with an option to book a private SMOP appointment for personalized instruction. The SMOP also continues the Boynton Beach Bucks campaign. There were also SMOP specialized Facebook ad campaign for dive charters. The CRA social media pages have grown over the last quarter. The Facebook page grew by 1,334 followers between July and August. Twitter had over 10K impressions. Instagram had over 5K users. Future projects were reviewed as contained in the meeting materials. Board Member Romelus suggested a comparison from the prior year be included. F. Palm Beach County Housing Authority Auction of the Cherry Hill Lots Results 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach Florida October 12, 2021 Ms. Shutt announced there are 39 lots in the CRA District in the Cherry Hill subdivision and the City and CRA staff were only successful in obtaining one lot as the bid prices were outrageous. On average, 25-foot lots sold for $64K. The CRA normally pays between $40K and $50K for a 50-foot lot. The 50 and 60-foot wide lots averaged $105K and the 100-foot wide lots averaged $193K. The CRA opted not to engage in bidding because they did not want to artificially drive up the prices. The Housing Authority contacted them as some bidders failed to put down a deposit on the properties. The CRA responded to some of it based on their appraisals of how much the property cost. The reason why they spent for the lot on 404 NE 12th was because the CRA owns the abutting lot and they can build affordable or single-family housing. Attachment five showed some of the winning bids. The CRA has to close on the lot by November 3rd. Staff will report back to the Board and would like to obtain the owners list from the Housing Authority auctioneer after the deadline for all others to close, to see who purchased lots and maybe they can talk about when they want to build on them or what their plans for the lots are. Vice Chair Hay asked if the Board was sticking to the maximum. Chair Grant explained it was competitive bidding. Ms. Shutt will apprise the Board of the outcome. The Housing Authority is offering the lots to everyone. She thought if the successful bidder fails to close by November, the lots could come the CRA's way, but other people will bid and others will walk away. The auction company still has the ability to collect sealed bids from people who have registered for certain property where closing has not occurred by November 3rd. Ms. Shutt explained the CRA will make their best offer and the Housing Authority can take it or leave it. Attachment two had the list of the auctioneer's starting bids, which came from the Property Appraiser. The lots were owned by the Housing Authority. Under the HUD Disposition process, the Housing Authority went through the entire process. She understood whatever proceeds they have would contribute to the existing assets they have, such as housing projects and developments. These are unrestricted funds for the Palm Beach County Housing Authority to spend as they desire. Federal funds could be spent a certain way. Board Member Romelus did not understand the nexus or where to go from there. It made no sense, and the land price made the home no longer affordable. She was disappointed the way the auction was run and noted residents want single-family homes in this area that are affordable. Board Member Penserga agreed and thought they should reach out to the Housing Authority and ask about their intentions. He would love to hear from them and suggested writing a letter about the outcome and detailing the damage it has done to the community. Chair Grant understood the Board's position and noted there are still 30 homes owned by the Housing Authority in Cherry Hill. They could see if the Housing Authority are trying to sell those homes. It is a pilot program for payment in lieu of taxes. The aspect the Board has they now can have partners to build homes and the aspect of building market rate versus subsidized homes is something the Board could still help with if the Board chooses Chair Grant thought the Housing Authority did something which was better than nothing. Board Member Romelus disagreed and 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach Florida October 12, 2021 asked what they could do as their hands are tied. Board Member Penserga wanted to understand if this is keeping with their guidelines and mission, if they do this everywhere and if the Authority supports affordable housing. Board Member Romelus noted these properties are now in private ownership. The issue is to they have a Housing Authority that sat on the land for 50 years, did nothing with them, made the most money they could and then walked away. There was filth, crime, garbage, and loitering for years. She hoped the new property owners would build something sustainable and recalled the property owner the CRA helped move out of her house. She thought there was no win in this. 15. Public Hearing 16. Old Business A. Discussion and Consideration of a Purchase and Development Agreement for the Cottage District Infill Housing Redevelopment Project with Azur Equities, LLC Ms. Shutt explained they were working with Mr. Gotsman as contained in the agenda item to get an acceptable exhibit D to reference in the Purchase and Development Agreement and the exhibit for the engagement of local business firms. These were the two items under discussion and the graphics need a few tweaks. Mr. Gotsman was present and had items he would like to discuss in terms of resale, and maintenance of affordability of the units. The intent is to have the unit owners pass forward what they got in subsidy from the CRA to make them affordable, but not capping them from what is needed as the market moves on its own through the years. The maintenance of affordability is 15 years for the original owners who purchases the property within a certain income bracket. If they chose to resell at a later date, it must be sold under the same income category they came in, or under the maximum amount of the bracket for that unit. If someone at 80% AMI buys a 100% AMI unit, they have to sell the unit to someone between 80% and 100% AMI. The second item is a call back for the subsidy the CRA is giving to Azur. The CRA will provide about $380K to offset costs of infrastructure in three payments. Mr. Gotsman requested the last payment be capped if he cannot build 40 units within the four years. Staff was fine with this. The original condition was Mr. Gotsman would pay $1,000 per day for each lot he did not complete. Ms. Shutt hoped they will receive this before four years and staff was fine with capping the final payment off at $90K. There are a lot of safeguards and a reverter clause for the unsold units should the project not go through as planed or if it is subdivided and sold as parcels. There are milestones contained in the staff report to accomplish site plan approval, platting and reporting annually for the construction jobs and the units sold to potential income-qualified buyers. Staff requested direction either to continue discussions, make adjustments and bring it back, or authorize the Chair to sign it if worked out before the next meeting. Chair Grant wanted to move forward and noted there was one property across the street listed for sale. He thought perhaps they could get a couple of more units. He thought they were almost there for the Purchase and 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach Florida October 12, 2021 Sale agreement. There was a misunderstanding of the A, B, C, D and E. Mr. Gotsman stated they were working on giving the owners flexibility, which was part of the reason for discussion about the resales as they do not want the homes to be flipped. They want the buyer to be able to recoup their price upon sale. Mr. Gotsman explained they will have four main models. Model A is a smaller model on the smaller lot. There are options to put the A, Al and A2 models on a larger size lot and to add a garage. The B models are similar and slightly larger with a garage option, which can be attached or detached. The idea is to keep the smaller model on individual lots without making them out of proportion. If they put larger homes on single-family lots, they are more expensive. This helps keep the homes affordable. They will try to accommodate everyone, but not all the lots can accommodate every home. He noted this has to go through Planning and Zoning. Each lot has their own specifications. Ms. Shutt pointed out they need to know the size of the units, the amenities, garage and cost and how it fits into their income bracket. It will be a mix. They will need to know what it looks like. Ms. Shutt explained when he goes to Planning and Zoning it is clear what the Board's direction is and he can fine tune the drawings and sales marketing brochure. Mr. Gotsman advised they do not have the brochures done. They will work on better illustrating what they will look like and on the elevations. Staff recommended some conditions as in Exhibit D or in the Development Agreement for local participation and Attachment 7 there was a commitment of a minimum of 20% local contractor engagement. Mr. Gotsman was agreeable to work with staff on it. He indicated in exhibit D his best effort to engage local contractors. Mr. Gotsman can do 20% but have to keep it affordable and they must be able to perform correctly. Board Member Penserga requested Ms. Shutt help facilitate. Motion Board Member Romelus moved for staff to proceed with Option 1. Chair Grant and Vice Chair Hay wanted to see the final Purchase and Sale Agreement. Chair Grant requested a motion the final draft of the Purchase and Sale Agreement be brought back to the Board. Motion Vice Hay so moved. Board Member Penserga seconded the motion.. The motion passed unanimously. B. Project Update for the Purchase of the Properties Located at 511, 515 and 529 E. Ocean Avenue Ms. Shutt announced after the last meeting the agreement was signed on September 20th. A critical dates list is in attachment 3. Staff commenced due diligence and will get 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach Florida October 12, 2021 a report. They have obtained all of the leases from the property owner and one lease renewal for Florida Technical Consultants for another year with a 90-day written notice to terminate. The initial deposit was forwarded to the CRA escrow agent, and a second deposit is due on October 15th. The CRA is proceeding with Valley National and getting underwriting for the project and they are still heading for December 17th. The next Board meeting and report is November 9th, which is just before the termination of the inspection period which is November 12th. Chair Grant asked if they received a response from Valley Nation regarding an estimated timeline. Ms. Shutt responded they have not. They have several documents needing signatures so they can submit toward the credit approval process, but they know they need to close. Chair Grant wanted to give them a deadline by the end of the month otherwise the CRA will have to accept any risk in November which could include losing the $200K if they do not receive the financing. Chair Granted wanted to ensure Valley National knows if they are unable to help the CRA to close on time, it will not look good for the bank either. C. 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 (TABLED 9114/21) Motion Vice Chair Hay moved to remove from the table. Board Member Penserga seconded the motion. The motion passed unanimously. Ms. Shutt advised staff proceeded to negotiate a lease agreement with Mr. Collins. They submitted a revised rent/lease agreement to him in June and the Board asked Mr. Collins for the costs to activate the use in the 401 building. The second building was previously demolished. Mr. Collins has provided some information, but not exact numbers for the interior and exterior renovations to activate the use. He alluded the outside would need about $55K. Mr. Collins explained this was to update parking to City Code. In his original letter of intent, the request was to be eligible for all interior and exterior improvements. The provision was removed and at the meeting with the City, the parking was brought up. Ms. Shutt explained the Board directed staff to obtain overall construction costs for the exterior, parking lot and interior for a retail fish market. The Board also said the site would not qualify for rent assistance due to reduced rent of $2,500 a month and a lease term of 10 years and a right to purchase. Since then, the CRA has not received cost improvements because the Board wanted to ensure they do not overspend and then demolish the building. Mr. Collins has several items what his understanding was under his LOI and why he cannot move forward with conceptual plans without knowing what the Board will be approving regarding assistance to activate the use. Mr. Collins thought continuing to negotiate a lease without knowing what the actual outlay is makes no sense. He advised the parking issue hit all of them. It took two months for a parking estimate and there is a stalemate. The grant options were 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach Florida October 12, 2021 removed and an additional amount of money was put on top of it. He asked if he still responsible for updating the parking on a leased property the City owns. He is pulling back from putting money into the project, which now has almost doubled. Ms. Shutt explained the applicant still has to come up with a cost in order for staff to advise the Board on what share and how much net money is to be awarded. Mr. Collins thought the costs were taken off the Board. He asked why he has to provide a cost for a build- out if the CRA would not contribute money to it. He noted Boardwalk Creamery will be demolished, but they received funds. If he has the option to still apply for grants, he will provide the estimates the Board needs. Chair Grant noted they had an RFP for the project with multiple responses and they said to Mr. Collins, because of his diligence with the Board, he would have an opportunity to try to do something here. The City said to get the market, he had to do certain things. Chair Grant asked about estimates for the building and/or parking. Mr. Collins noted they have list of equipment local plumbers and electricians who can provide him the information by next meeting. Mr. Collins advised his prior budget to improve the building interior and paint was $75K. The exterior was for the parking they have to update which is another $55K without the landscaping that is required. That is $130K to $140K. Mr. Collins explained there is equipment leasing, which was another $80K as a lease purchase which put them well over $200K. Chair Grant thought the business qualifies for the $50K interior exterior build-out grant and up to the $21 K rent reimbursement. If the Board allows the economic development grants so they can remove slum and blight, the CRA should do what they can to build locations for short or long terms. He asked the Board if they would allow the applicant to apply for economic development and rent reimbursement grant to make the project work or not. Board Member Romelus noted they had four other applicants for the same property and none of them asked anything from the CRA. Now this applicant is asking for $71 K and the conversation shifted. They are helping Mr. Collins, but there were no other contributions the CRA had to make, except to use the land. Mr. Collins explained that was in his original LOI. The Board accepted the LOI and had to negotiate. Ms. Shutt commented he was approached by another business, they would also like to know if and when the CRA moves forward so they could submit something as well. The person was from Sweetwater as contained in attachment nine. Chair Grant thought without assistance from the CRA, it is unlikely Mr. Collins can move forward. Board Member Romelus explained at this time, the CRA is offering the property and Mr. Collins was responsible for all else. She asked if those same provisions were offered to other interested parties. Ms. Shutt commented the CRA has not engaged in those conversations because the Board accepted Mr. Collins' LOI. She knows Sweetwater's would have to come up with terms and all of the applicants can apply for grants, but as a 50/50 match. Additionally, as part of their application, they will have to permit a credit authorization be conducted to ensure the business is viable and go through all the needed processes including costs and drawings. Board Member Romelus thought it was a stalemate, The CRA was not planning to invest too much in it. 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach Florida October 12, 2021 The fact Mr. Collin's can receive the property at a reduced rate, she would make that contribution, especially when there are applicants proposing twice the rent. Mr. Collins responded the market rate, triple net is over $4K. The CRA has put funds into properties that are going to be demolished, which is basically the same thing. He has heard they will work with them. He has been attending meetings for a year, and the CRA had indicated it wants to keep his business in the City. Ms. Shutt clarified they are inside site approval and they are working hard. They did give a cash offering and in-kind of$300K in total of market value. Chair Grant favored using the grants to move the project forward. It is an aspect of what they want to do, and they can have all the costs at the next meeting and move forward If that is not the case, they should let Mr. Collins know the CRA is not interested in spending any additional money. Board Member Katz had no problem if the $71 K is sufficient to get Mr. Collins where he needs to go. Mr. Collins explained it will still be more, but It would help him with parking. It is a match. Board Member Katz agreed with Chair Grant if Mr. Collins could affirm the costs. Board Member Katz did not know when the Boynton Beach Boulevard consolidation plan would come to fruition, but assumed it is years and years down the line. He thought $71 K would rehabilitate the property for a number of years and would be worthwhile. Chair Grant agreed they are finding a partner to help the CRA improve the property the CRA owns. Board Member Romelus also was fine with the proposition, but wanted to ensure Mr. Collins upheld his end of the bargain. It was anticipated the expense was sufficient. Ms. Shutt stated they could ensure the Board receives the comments to the lease before the next meeting so Legal Counsel can review it and give authorization for the credit. Mr. Collins will have it by next Friday. A motion to direct staff to proceed with economic developments grants available to the applicant was needed. Motion Board Member Katz so moved. Board Member Penserga seconded the motion. He added he was concerned there would be further surprises. The motion passed unanimously. 17. New Business A. Consideration of a Second Amendment to the Purchase and Development Agreement to delete the Flex Space for a New Neighborhood Officer Program Office and Community Space in the Ocean Breeze East Project This item was previously addressed. 18 Meeting Minutes Community Redevelopment Agency Board Boynton Beach Florida October 12, 2021 B. Discussion and Consideration of the Purchase of 220-224 E. MILK Boulevard Ms. Shutt advised Mr. Fitzpatrick offered to sell his three lots for $2M on October 8th Closing would occur prior to March 2022. The CRA Advisory Board voted to land bank the property. Chair Grant commented one issue was many tenants Mr. Fitzpatrick had. There are 12 tenants and Chair Grant noted $2M was above appraised value. Brian Fitzpatrick, 40 NE 1St Street, stated he could deliver the property empty and the City is currently developing the land to the west of it. The land is likely to have additional value, but to get the same number of units in an affordable way in the future is unlikely. Chair Grant felt the CRA has more apparent needs and to have affordable single-family homes, the CRA would have to subsidize. The other properties Mr. Fitzpatrick has on the corner of Ocean Avenue and 1St Street, and the corner of NE 4th Avenue and 1St Street, the CRA may want to consider. He directed staff to get an asking price and for the Board to decide. As for the MILK properties with the 12 tenants, the CRA does not want to be a landlord and in the near future they would not be redeveloping the land. He thought having additional vacant lots on MILK Jr. Boulevard would not be in the CRA's best interest. Vice Chair Hay agreed. The appraised value is $1.2M on May 24th by Anderson Carr as contained in Attachment three. Mr. Fitzpatrick was offended by the appraisal. He contended the appraiser disregarded relevant comps and concentrated on negative aspects of comps. The appraisal does not mention Centennial Management's recently completed projects. He advised there were several things he did, and he gave him the figures to base the rents on, which the appraiser disregarded. Another appraiser treated another property owner differently. He thought there was a serious problem with properties on MILK Jr. Boulevard being undervalued. Chair Grant stated Mr. Fitzpatrick could get his own appraisal. Chair Grant did not want to be responsible for the 12 people living there, Mr. Fitzpatrick noted in 2006, Delray acquired a 10-unit apartment building, and the CRA is using it for affordable housing. This could provide 12 affordable housing units. He thought the CRA would have the foundation for another project similar to Centennial Management. Vice Chair Hay commented he will not support purchasing the property. Chair Grant reiterated he would look at the other two properties on the 409 NE 1St Street and 4th Street. Chair Grant thought that has value especially if they purchase 137 NE 3rd Avenue. He announced there is no consensus to buy the MILK property. He requested a motion for staff to come up with a purchase and sale agreement for $500K for the Board to discuss at the next meeting. Hopefully they can get an appraisal. Board Member Romelus wanted staff to get more information about the 409 and the other property, to look into the appraisal and purchase of 409 NE 1St Street. Motion Vice Chair Hay so moved. Board Member Penserga seconded the motion. The motion passed unanimously. 19 Meeting Minutes Community Redevelopment Agency Board Boynton Beach Florida October 12, 2021 Mr. Fitzpatrick pointed out his clients have the ability to seek out other housing possibilities. Board Member Penserga also noted this property is easier as there are no tenants involved. C. Discussion Regarding the 2021 Holiday Boat Parade Ms. Coppin received notification from Delray Beach they did not allocate funding for the parade. Previously they shared the costs and the CRA was reimbursed 50% for their marketing and some of the promotions and awards associated with the parade. Due to the CRA's limitation about hosting events outside of the District, they have to curtail the parade route. Staff cannot pull permits in Delray Beach and there are three bridges in Delray Beach. Staff proposed starting the parade at the Palm Beach Yacht Center and ending at the C15 canal. Chair Grant suggested speaking to the neighbors north in Hypoluxo, Lantana and Manalapan to see if they would help fund some of the marketing costs. Ms. Coppin stated she reached out to Hypoluxo. The Mayor declined and she has not heard from Lantana. She will reach out to Manalapan and apprise the Board. Chair Grant suggested contacting the City Manager, not the elected officials. He also suggested contacting the Downtown Business Coalition to see if they could offer assistance with prizes and marketing. Ms. Coppin advised they have to determine the route because staff has to announce and release the registration forms. They are approaching November and the parade occurs in early December. The parade will end before the George Bush Bridge and there is flexibility about the starting point. Chair Grant commented the Board can finalize all in November and will try to get the Intracoastal communities involved. D. Discussion and Consideration of a Tax Deed Sale for the Property Located at 137 NE 3rd Avenue Theresa Utterback, Development Services Manager, stated the item is a tax deed sale for a property adjacent to property the CRA owns. The property has garage, there are no utilities, and no liens except for the tax lien. She was looking for direction and would love to bid on the property. Chair Grant wanted to bid similar to the land value of the adjacent property as the lot sizes there have additional value. It is zoned for duplexes and they have the ability to move forward with a better affordable housing property. Chair Grant suggested $200K and that the Executive Director use her best judgement for any amount over $200K. Motion Board Member Katz so moved. Vice Chair Hay seconded the motion. The motion passed unanimously. 18. Future Agenda Items A. Review of Marina Parking Management - Rules and Regulations 20 Meeting Minutes Community Redevelopment Agency Board Boynton Beach Florida October 12, 2021 Chair Grant received comments from a dive operator and some dive boats are bigger than others. The proposed conversation was to direct the Harbor Manager to monitor and report overages over 30 minute and charge a fee. It will motivate people to be as quick and efficient as possible. 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 (TABLED 9/14/21) C. Discussion and Consideration of Additional Letters of Intent Received for the CRA-Owned Property Located at 211 E Ocean Avenue (TABLED 9/14/21) 19. Adjournment Motion There being no further business to discuss, Board Member Penserga moved to adjourn. Board Member Romelus seconded the motion. The motion passed unanimously. Mr. McNally provided the closing advising how the public could access the audio. The meeting was adjourned at 8:39 p.m. Catherine Cherry Minutes Specialist 21