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Minutes 11-09-21 Minutes of the Community Redevelopment Agency Board Meeting Held on Tuesday, November 9, 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 Tara Duhy, Board Counsel Christina Romelus, Board Member Ty Penserga, Board Member Justin Katz, Board Member 1. Call to Order Chair Grant called the meeting to order at 5:36 p.m. 2. Invocation The invocation was given by Reverend Woodrow Hay. 3. Pledge of Allegiance The members recited the Pledge of Allegiance to the Flag. 4. Roll Call Roll call revealed a quorum was present. 5. Agenda Approval A. Additions, Deletions, Corrections to the Agenda Chair Grant noted representatives for Items A and G were present and he requested hearing them before Item 6. Legal and hearing Item 16 G after Item 10 Public Comments. B. Adoption of Agenda Motion Vice Chair Hay moved to approve as amended. Board Member Penserga seconded the motion. The motion passed unanimously. Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 16 A. Discussion and Consideration of a Commercial Development Agreement between the CRA and Centennial Management Corporation for the MLK Jr. Boulevard Corridor Commercial Redevelopment and Affordable Multi-Family Rental Apartment Project (Heard out of Order) Thuy Shutt, CRA Executive Director, explained staff has been working with Ms. Roque and Mr. Swezy from Centennial Management on the Commercial Development Agreement setting the terms for the commercial component for the mixed use, MLK Jr Boulevard project. Their terms in there are terms that are part of the negotiated items so far for the construction of the 8,250 square foot commercial vertically in integrated space in the mixed-use building. The building and project were submitted for permitting. There will be eight bays allowing neighborhood serving uses for residents of the project and HOB and Ocean Breeze East residents. The terms set the obligations who will build it, how it would be reimbursed, the cost and designation of some of the uses that are important for the project and the build out of Neighborhood Officer Program, and it sets forth the requirement for the leasing, marketing and construction of the shell. She advised $2,025,815 was allocated as part of the board's budget in 2021.2022 to build the shell, it is comprised of everything in the shell including the concrete floors will be poured after the tenant space is identified. Staff will work with Centennial. There are some restrictions on the CRA's ability to look at the commercial property association as a form as an integrated building. There will be residential and commercial side to it, and the first right of refusal to repurchase the property should Centennial decide to sell it in the future. Staff recommends rents hold at $22 a square foot for five years and then increase 3% for the next five years and after year 10, there will be no further rent restrictions. The Board, at its sole discretion, can decide if that number can be increased or decreased. It is an opportunity for local businesses to come into the space. The first rentals should be for local businesses. Elizabeth Rogue, Centennial Management, agreed with Ms. Shutt's statements. There were a few minor comments to the agreements, they are working through, but Ms. Shutt represented everything Centennial Managements feels should be in the agreement. Board Member Penserga noted one key priority was to ensure local businesses can open shops in their own neighborhood. He asked what was being done to accomplish that goal. Ms. Rogue explained they talked about a marketing campaign with the CRA to announce it to the community and start soliciting local residents, maybe current businesses may relocate or attract others locally who may be thinking about opening a business. That is on the first wave of businesses. Chair Grant noted there is a huge outdoor patio and thought the sit-down restaurant should go with it. He asked where the restaurant would go and learned Bay four is the larger space with the patio and Bay five would be a coffee or sandwich shop. They are on the walkway to the parking lot. Further discussion followed about restaurants and the bays. It could accommodate 7 businesses out of 8 bays. Chair Grant also wanted to see something with the non- 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 profits to help the community. The total square footage is 8,220 or 50 square feet in total. They can adjust the dividing line, change the configuration as needed and be ready for the build out and move them in when residents move it. Board Member Penserga questioned how Centennial arrived with the $22 per square foot and asked if it was a reasonable number for a small business. Chair Grant noted it was in comparison to other surrounding rents. He understood the going rate on Atlantic Avenue was almost $100 per square foot. Ms. Shutt explained most of these are from grant recipients as they have to say how much rent. They have the program to subsidize 50% of rent through the program or improvement needs for tenants later on. In general, they are average. Salons may need more water and sewer than a retail or sandwich shop. On average, they are seeing from $25 to $40 per square feet in the Boynton Beach downtown area, east of 95. Lake Worth may be a little more and Delray is a lot more. Delray was $22 per square foot 10 years ago and now is at $60 to $100. Ms. Roque explained nothing was solidified except for restaurant spaces as certain equipment is needed that requires permitting. They did speak about the Police station on the outparcel. Chair Grant asked if there were any other Community Benefits with this agreement with local hiring. Ms. Shutt explained it was part of the Purchase and Development Agreement. Ms. Roque explained they will start their first job fair. They just solidified their first contractors. It will be advantageous to the local community to see if the subcontractors can hire local people. They still have electricians and a plumber from Boynton Beach was hired again. They will hold two job fairs. Ms. Shutt explained they forwarded some names from the BTR receipts the CRA Staff receives. Motion Board Member Penserga moved to approve. Vice Chair Hay seconded the motion. Board Member Romelus did not remember seeing the site plan prior to the meeting and questioned why the ingress/egress is next to Seacrest instead of the center. Ms. Roque explained she was looking at the north parcel and thee is a north and south parcel. Ms. Shutt explained they will finalize the agreement and bring it back for Board approval before the next meeting John McNally, Director, ITS, opened online Public Comment. Ernest Mignoli, 710 NE 7t" Street, commented when he comes to the meetings, there is very little paperwork. He stated everything on the screens should be handouts on the table, so people who understand construction can be involved. He was involved with development all over the world and almost all municipalities have models. They bring in a big table so people can visually see it. He likes to let the CRA Board know there is 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 very little public participation especially with CRA's because no one knows what is going on. He is pretty experienced but he has difficulty understanding and thought it makes no sense. Then the Board makes a statement and a lot of the units will be for people who work in the complex. Someone gets a job and three weeks later they quit. He did not think it is a give back. He does not hear anything from this project It will be a lot of traffic, pollution, density and crime, and be just another billionaire project that comes into town and clutters up a highway trying to make Boynton Beach like Delray Beach. Every time you come in, everyone is from Miami or Delray. No one else coming forward, Public Comment was closed. Vote The motion passed unanimously. Board Member Katz wanted to amend the agenda to allow Marina representatives to speak sooner. He requested to add Old Business Item F subsequent to these items or after public comment and that item that was after public comment. Chair Grant had no objections and requested including 16 G after 16 E and F. Motion Board Member Romelus so moved. Vice Chair Hay seconded the motion. The motion passed unanimously. 16 E. Consideration of a Second Amendment to the Purchase and Development Agreement to delete the Flex Space for a New Neighborhood Officer Program Office in the Ocean Breeze East Project (Heard out of Order) Ms. Shutt explained on October 12th, the Board directed staff to work with Centennial on the Ocean Breeze East apartments on the cost of the improvements for the flex space. The estimate was $165,718, which was not budgeted because they thought it would be where the NOP would be. Staff feels unless there is a tenant that is there, they not proceed with construction, maybe set aside funding for this and work with Centennial on marketing to find someone for the space. The CRA can only pay for improvements like they would with the grants, but they itemized project costs, attributed to this, one of which is a design fee. She commented $15K can be allocated. It's a smaller space so there is not a lot of information technology work needed. If they allocate $50K for the tenant build out this year. She hoped some funds could be allocated or next year. She thought out of the $60K in funds, they could reduce it to $100K. Ms. Shutt suggested allocating $65K in this year's budget and make a budget amendment to 21/22 fiscal year. Motion 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 Vice Chair Hay moved to approve. Board Member Katz seconded the motion. Centennial was agreeable to the item. Ms. Shutt explained they have to amend the Development Agreement. Attorney Duhy explained there is a draft amendment included so the motion should be to approve the amendment to the Ocean Breeze East TERFA. Vice Chair Hay amended his motion. Board Member Katz amended his second. Ernest Mignoli, 710 NW 7th Street, stated he made public comments and the Board passed something unanimously and the Board is now talking about something else and getting ready to vote, likely unanimously. He asked how is it possible for anyone in the public to remotely understand what is occurring. He cannot figure out what they are doing except they all get along very well. Mr. Mignoli thought it was called conflict. Board Member Katz thought it was cooperation. Mr. Mignoli asked Board Member Katz to take his mask off and noted everyone on the CRA Advisory Board was hugging, kissing, and did not wear masks. He thinks they shroud the item in an untenable meeting. He would love to debate Board Member Katz and he thought the Board was badly conflicted and Boynton Beach is developing in a very conflicted way. He commented the only good thing is the Mayor is termed out and was going to Broward or Date to run for Senator and the residents were stuck with the rest of the Board Board Member Katz and Board Member Romelus were also termed out, which he thought was good. No one else coming forward, Public Comment was closed. Vote The motion passed unanimously 16 F. Review of Marina Parking Management - Rules and Regulations (Heard out of Order) Theresa Utterback, Development Service Manager explained staff has been monitoring the Marina Parking and is going well. The last round staff was asked to monitor load and extend the morning loading and unloading to 30 minutes and in afternoon to 15 minutes. It has worked out well. The backup shows who did not conform and the Board can impose a fine to anyone staying more than the 15 minutes. The afternoon has been more problematic. Chair Grant noted Splashdown is a bigger boat. They have more diverse and they have to treat all tenants equally. Chair Grant suggested not charging the same fees as with the Beach or Harvey Oyer Boat Ramp Park He thought maybe 25 cents a minute was a good place to start. The next Board could determine if it the fine needs to be higher or lower. Vice Chair Hay agreed, but thought they should feel it. There are only two lanes and when someone it taking more time, they are holding up someone else. He did not want to go that low. He thought $1 a minute. Other docks charge more than that. 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 Chair Grant understood, he thought for the afternoons, if they have a limit of 15 minutes and there are 16 people, they should have 16 minutes to get off the boat with equipment. He feels dive boats are different, but must be treated equally. He suggested a 50-cent fine and bump it up next year. Motion Board Member Katz so moved. Vice Chair Hay seconded the motion. Chair Grant opened public comment. There was no one online. Ernest Mignoli, 710 NE 7th, bought a home there last October and stated it is a nice municipality, he hoped it would be a lot nicer next year after March. He had no idea what they are talking about with Boats and docking. He asked if they were talking about a Marina, a bar on the Intracoastal, a canal. He asked what the Board was charging money for. Mr. Mignoli thought the Chair could sit up there and make deals, when the public does not know what they are talking about. He asked if it was a parking garage, or lot, if it was on Federal on Ocean Avenue. Ms. Shutt explained the CRA owns a portion of the Boynton Harbor Marina. They lease 18 slips to encourage and support the Marina Industry. It is a public space. Vote The motion passed unanimously. 16 G Project Update for the Purchase of the Properties Located at 511, 515 and 529 E. Ocean Avenue Ms. Shutt commented this item is often referred to as the Oyer property. It is adjacent to 115 N. Federal Highway assemblage. Staff was conducting due diligence on the purchase. The Board has to consider three business decisions as this is the last meeting before the inspection period ends The Board is purchasing the property from Mr. Oyer for $3.6M. The CRA obtained a loan commitment and will close, however, there are critical repairs with cracks that need to be addressed at 529, and 511 has life safety issues with the second means of egress on the residential building. There were also unpermitted items. When the CRA assumes ownership, they will have to address them as they are a liability issue. Currently there are $15K a month in.rental revenue for the five commercial spaces and five residential units. Only three residential units are occupied and there are four commercial tenants, two are on the second floor of the 529 E. Ocean Avenue building. The commercial tenants are Macoviak Insurance, Hurricane Alley, a marketing firm and FTC, which is a GIS engineering firm. With the information provided by the owner, operating costs are about $3K. the revenue is $15K including the three residential units 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 on the second floor, but there are normal maintenance and repair possibilities associated with an older building. The long-term cost to operate the building. Should they not have a builder online for assemblage of 115 N. Federal Highway. There are repairs and upgrades that may need to be done in the next year or two that need to be addressed at an unknown cost if the CRA puts new tenants in there, especially the FSB clothing store, which is non-conforming and cannot be vested. Staff listed all the inspection results that amounts to about $80K. There is an active termite infestation. The treatment cost is $12K. There is a cost in the interruption to the businesses in the 529 building that should be considered. There are other repair costs that need immediate attention. She noted it is an older building in fair shape, but there are unexpected costs they do not know about, especially without a structural analysis. Chair Grant noted staff was given direction not to issue any new leases. If purchased, the CRA can use the existing leases and let current tenants know there are life safety issues, but it is well within the risk that they have as a government agency and understanding these are older buildings. If we do not move forward now, there are aspects of the RFP/RFQ would have to change as they could not be part of the presentation and the RFP/RFQ would have to be reissued. Attorney Duhy differed and stated the CRA did not represent that they own them, they were to give them the option to include those properties in any proposal. The RFP would still hold. Most developers included the property in their project. Attorney Duhy explained November 12 is the expiration of the feasibility period. Until that time, the CRA can terminate and receive its full deposit back. If the feasibility period expires and they do not terminate the agreement; the full deposit will be payable to the seller and be non-refundable. Board Member Romelus asked if the CRA can figure out if the crack is structural or only a fagade crack prior to Friday. Ms. Shutt responded they could not. It was possible it was not structural, but it was visually identified by the structural inspector and the building official. Board Member Romelus asked if those amounts could be deducted from the final sale price because the CRA has to pay. Ms. Shutt stated they can request it from Mr. Oyer. Attorney Duhy explained the contract is to purchase the building as is, s it would only be a request. Board Member Romelus wanted to request it of Mr. Oyer as they are paying above market value. Board Member Katz supported the request as well. The sale price included a small percent escalation beyond market rate. He thought it was a fair trade. Harvey Oyer explained the CRA is not paying above market value, it is below market rate. The appraisal used was over a year old. He commented they had this discussion, and the Board did not want any leases removed so they can tear the building down. Then the CRA is given a list of repairs that should be fixed or paid for. He pointed out the Board forced them not to renew the leases, and he asked the point of making repairs if they will demolish the building. He contended the CRA is not underwriting this on the value of this as an ongoing concern because they would demolish the building. 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 Board Member Penserga commented the intention long term is to redevelop the land, but in the interim they are legally liable to the tenants there and it puts the CRA in a difficult position. Mr. Oyer agreed and stated he tried to make that point, when the Board prohibited Mr. Oyer to enter into new leases. The CRA will have an interim period, should the CRA close on the property, where they will be a landlord, but it made no sense they did not renew the leases. Most of the items on the list are grandfathered and the CRA is not required to put in additional access points, only if building today or changing the use or occupancy. He advised most of the items are not required under the Code. The four corners of the building are solid. Two of the three buildings are CBS and all three have roofs under two years old with warranties. The structural issues are not in question. Board Member Penserga commented it is clearly labeled as critical structural life and safety repairs. He thought it had to be addressed. He asked if this has been known or just recently discovered. Mr. Oyer noted the front page is titled critical structural repairs and it lists a second means of egress is needed. Mr. Oyer explained it is grandfathered in and there are cracks in an interior wall and unpermitted improvements of a tiki hut. Mr. Oyer explained a tenant should have had a permit for the tiki hut, and any home in the community has cracks. It is exaggerated. Board Member Romelus thought with any purchase and sale and there are negotiations. She is asking if there are seller concessions. She thought these are expensive repairs that have to be made for the tenants in the future until they decide to tear the building down. She listed the cost of the repairs. She requested Mr. Oyer meet them in the middle and reduce the price or give a counter or an agreement in good faith that expenses are paid if the CRA does not buy it. If the CRA does not purchase the property, Mr. Oyer will have to make repairs. Mr. Oyer commented as a reminder the purchase is as is, it is below appraised value with closing to occur by the end of the year. He has no authority to bind the shareholders. He is trying to help redevelop the entire block. His vote would be no as they are underselling it. He did not think his sisters would agree to the repairs. Board Member Katz asked when the second-floor leases would end. Ms. Shutt explained the three residential units end in January. The two leases for the Marketing firm and BGI firm have a year, but they do have the 90-day notification to vacate. The egress to the second floor would be alleviated by not renewing the leases and the second floor would be unoccupied. Ms. Shutt explained if there are no improvements or a change in use for those tenants' spaces, they can remain forever, but if there is a certain percentage there are ADA requirements that would be needed. There was discussion of egress and he stairwells. Board Member Katz there are short term solutions for the concern for safety and a long-term solution if they did not move forward with redevelopment in a timely fashion, they would determine how to address the issue and would do so without disrupting any of the tenants. 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 Chair Grant opened public comment. Ernest Mignoli, 710 NE 7th Street, stated since he came here, he was always enamored by the corner and was aware the building is nearly 100 years old. He commented any building in any sale requires a certified independent structural engineering report; not a recertification. With his building, they bought in a friend who said it was fine. He advised you cannot do what you are doing or apply what was done 70 years ago as it is not life safety safe. He thought the site was such a critical corner, he thought the Board should wait on the whole thing until after March for a new Board to be seated. He advised the Board was over developing the street. He thought the Board should let a private owner sell the land, and let a developer come in. He questioned why the CRA was involved and proffered it was because Board wants to develop it the way the Board wants and not the residents. It should not be a hot spot. It should be a family spot. Board Member Katz advised he has always said other than being careful with Hurricane Alley, the other tenants have leases that will expire, and the offices are essential. He asked what part of the structure to the west of Hurricane Alley could be taken down subsequent to the lease being addressed leaving Hurricane Alley as the only thing left to continue operating. He asked if the other two structures to the west be demolished as most of it will come down anyway. It would provide the least disruption and the least cost. Ms. Shutt suggested just not occupying the space which is the easiest for the short term. Tenants can relocate themselves as the space will not be active. To surgically demolish the building will still be a disruption to Hurricane Alley. The unpermitted structures must be made right although there is no running water to the bar or they can stop using it as a bar. The gravel has to be paid and these are things that are not critical, but are a concern. Mr. Oyer agreed the safer way is demolish two buildings and leave the two western buildings and to address the tiki hut. Board Member Katz would proceed with it because of the implications of not proceeding with it and they made their efforts. Mr. Oyer reiterated their biggest concern is Hurricane Alley. He understands that some of the developers contemplate building a new space, leave her where she is. Let someone build a space, let her stay where she is and then move her once and then demo the building. Board Member Katz agreed and asked they direct staff to contact the City and Ms. Kelley to review and reach out about minor compliance issues. Hopefully it will not cause a disruption. Chair Grant requested a motion to move forward with the purchase in light of the feasibility studies the Board received tonight. Motion 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 Board Member Katz moved to approve. Board Member Romelus seconded the motion. There were no online comments. The motion passed unanimously. 6. Legal A. Project Update on the Purchase and Development Agreement with Ocean One Boynton, LLC for the Ocean One Project Attorney Duhy stated in October, they had discussion with developer of the Ocean One Boynton project regarding the commencement of construction of the public plaza. CRA Board Counsel Kathryn Rossmell sent a letter to Attorney Bonnie Miskel at the direction of the Board in October, to either extend the construction period of two years for consideration of$20K or paying $100K or make some offer to buy out that provision. Today, they received a response indicating Ocean One would chose Option One. The letter is before the Board which Attorney Duhy read as follows: "On behalf of land owner of 114222 N. Federal Highway, ocean one Boynton LLC, thank you for your letter outlining the option of the status of the construction of the public plaza pursuant to the Purchase and Development agreement dated January 16, 2018. The landowner is choosing Option one and will pay $20,000 within five business days from the date of this letter for an extension to commence construction of the public plaza from the original expiration date, creating a new deadline of March 9, 2023. This letter will serve to establish that extension of the deadline upon receipt of the $20K. This letter will also confirm that if both current of future land owner pull a permit, (and Attorney Duhy stated she has confirmed with Ms. Miskel that that is a building or engineering permit) by March 9, 2023 for either A, a new site plan for the entire 3.4 acre site; or B, the site plan consisting of 231 units approved on April 4, 2017; or C: commence construction of the public plaza on March 9, 2023, the Boynton Beach CRA will deem the construction requirements of the previous paragraph satisfied and release any and all restrictions on the deed as referenced in the agreement." It was clarified commencement of construction means pulling and proceeding with construction with all due diligence. Chair Grant was concerned about the deadline to commence construction for option C as there is no deadline. Attorney Duhy explained the party has to begin construction by March 9, 2023. Chair Grant noted it is not a Certificate of Occupancy as no one is occupying the location. he asked when do they have construction of a public plaza as agreed-to in the original agreement. He asked what is fair amount of time for completion of construction. Ms. Shutt thought it would be about nine months as it is an outdoor space and it only pertains to sidewalk, tree plantings, irrigation and lighting. Chair Grant recommended if the project goes for more than nine months, it constitutes a default. Attorney Duhy stated she can add a sentence to the letter requiring completion of construction within nine months. 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 Attorney Bonnie Miskel, confirmed itonly applies to paragraph C and thought it was acceptable. A motion to approve the terms of the letter with the amendment as stated and authorization for Ms. Shutt to execute it was requested. Motion Board Member Romelus so moved. Vice Chair Hay seconded the motion. The motion passed unanimously. . Ernest Mignoli, 710 NE 7t" Street, had the same comments. Every time the Board is before the public, there is talk with a lot of developers, lawyers, business people and residents, it always seems to go the wrong way and nothing can be done. He asked why the City Attorney's law firm from Broward county is always so influential of things that come in Boynton Beach. He asked why the City does not have local attorneys representing the City and the residents instead of Broward and Dade individuals. It made no sense to him and it is turning Boynton Beach into Broward and Dade County. He thought when one Board member makes a good point and it puts a damper on something, another Board member says they will accept it. He noted there is a CRA Board, and a CRA Advisory Board, and he thought one member of CRA Advisory Board was seated on the CRA Board, and wondered why everyone does not see the matter as conflicted. He asked why, on these corners and development, 500 residents were not present. If it was in the Mayor's neighborhood he would show up. He noted no one was present. The development is drastic and the public cannot stop anything and the Board will term out and they are left with this mess. Vote 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 spoke to representatives from Centennial Management Board Member Romelus spoke with Brian Fitzpatrick. Board Member Penserga spoke with Attorney Bonnie Miskel, Kim Kelly, he attended the Downtown Business Coalition, the other day and Elizabeth Swezy and Mr. Oyer months ago. Vice Chair Hay spoke with Elizabeth Roque, Centennial Management and Kim Kelly. Chair Grant spoke with Brian Fitzpatrick, the Centennial Management Group, Harvey Oyer, Tim Collins, Ocean One and also attended the Downtown Business Coalition meeting. 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 8. Announcements and Awards A. Florida Redevelopment Association (FRA) 2021 Roy F. Kenzie Awards (Board Member Penserga left the dais at 7:05 p.m.) Ms. Shutt announced the CRA received an outstanding residential award, which was a very competitive award, for the Ocean Breeze East project by Centennial. They found the reason for the award was they were able to be flexible in their development options and financing of the 123 Low income housing rental projects, which was constructed in 11 months and fully occupied in 11 months during the pandemic. The CRA was well represented by three CRA Advisory Board members who will make a presentation to the Board next month. v B. The 10th Annual Boynton Beach Haunted Pirate Fest and Mermaid Splash Project Recap Mercedes Coppin, Business Promotions and Events Manager, had a power point presentation about the event. The event was held Halloween weekend. (Board Member Penserga returned to the dais at 7:07 p.m.) It attracted thousands of people and staff received great feedback. Attendees were encouraged to participate in a short feedback survey. Staff learned 54% of the attendees were first time attendees and 46% were returning. There were 405 surveys completed through Survey Monkey. Forty three percent of the attendees were from Boynton Beach; 34% were from Palm Beach County; and 18% outside the county and 5% were from out of state. There were a variety of business promotions. In addition to businesses located along E. Ocean Avenue, there were 13 CRA businesses from the CRA area that participated. All of the businesses involved participated in the Treasure Hunt. The event featured all the craft beer from all three breweries and they were happy to work with Due South one last time for their signature beer the "Pirate's Rebellion." It was a heavily marketed event. Visuals of the various advertisements were viewed. Board Member Romelus noted this was the first CRA since COVID and in the new downtown. She gave kudos to staff and commented this event was the best event yet. Ms. Shutt agreed with Board Member Romelus and noted staff only had 10 weeks to prepare and not the entire summer. Vice Chair Hay agreed with Board Member Romelus comments. Ms. Coppin was waiting on the attendance tally from the company, Live Gauge. Board Member Katz also agreed and stated areas on the Avenue that were vacant in the past were filling in and he thanked staff for their efforts on behalf of the residents. Chair Grant also agreed. Ms. Coppin recognized Ms. Shutt and Ms. Roberts and Mr. Hussain for their support. Board Member Katz noted each year in District 1, the event has a giant banner on the hotel at the entrance to 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 Renaissance Commons, and in the past, the Mayor dressed up. He mentioned his second or third place award in the costume contest. He suggested, if the Mayor is willing to dress up, they should commission a banner of him. 9. Information Only A. Public Comment Log B. Public Relations Articles Associated with the CRA 10. Public Comments Ernest Mignol1, 710 NE 7th Street, thought it was fantastic and never saw more alcohol and more places encouraging him to try medical marijuana. He congratulated the CRA for letting all these little kids see what he believes is an abuse of alcohol and promotion of THC vaping. He did not know what the CRA was proud of. He did not like the guy sticking fire in his mouth and thought children should not see something like that. He asked why the Board was joking now about the costume the outgoing Mayor wore. His comment is about the CRA Advisory Board and CRA Board and how the CRA excludes the public. He tries to study each development and case, and thought Broward and Dade are taking over Boynton. Where he came from in New Jersey many developers are heading to Broward and Dade and some of the overflow heard about Boynton and are heading to Boynton Beach. Every time he comes in, the Board talks about making Boynton Beach a hot spot. He did not think a hot spot was good for kids. No one else coming forward, Public Comments was closed. 11. CRA Advisory Board A. 2022 CRA Advisory Board Meeting Dates Ms. Shutt advised the CRA Advisory Board approved the dates. They do not conflict with holidays. B. Pending Assignments C. Reports on Pending Assignments 1. CRA AB November 4, 2021 Results of the 115 N. Federal Hwy Infill Mixed Use Redevelopment Project RFP/RFQ Proposers' Presentation Ms. Shutt explained the video is uploaded and the presentations are available on the CRA website. There were five Respondents and the CRA Board will hear the presentations on November 30th at 5:30 p.m. On the 30th, the CRA financial Analyst Proposals would be available to discuss the metrics on the different offers from the Respondents. It will be available in the Board Packet for November 30th and the staff 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 results as well. The proposals will be available to the public after November 19th as a public records request. Staff will try to send the information electronically. Board Member Katz stated each application that will be made available digitally, if printed exceeded 800 to 1,000 pages each. The total was 1,100 pages scanned for the CRA Advisory Board, but there are documents that are exempt. Vice Chair Hay understood a lot of those presentations were very long. Ms. Shutt recommend 20 minutes for the presenters and 20 minutes for Board questions and public comments questions, and a total of 45 minutes. The presentations should be over at 9:15 p.m. 12. Consent Agenda A. Approval of CRA Board Meeting Minutes - October 12, 2021 B. CRA Financial Report Period Ending October 31, 2021 C. Approval of 2022 CRA Board Meeting Dates D. Approval of Increase in the Commercial Property Improvement Grant Funding in the Amount of$2,368.00 for Stevo, Inc. d/b/a CK's Lockshop & Security Center located at 301 SE 4th Street, Boynton Beach, FL 33435 13. Pulled Consent Agenda Items - none Motion Board Member Katz moved to approve the Consent Agenda. Vice Chair Hay seconded the motion. The motion passed unanimously. 14. CRA Projects in Progress A. Social Media Update Renee Roberts, Social Media and Communications Specialist, stated in October they shared posts to encourage people to shop and dine locally. Posts to promote Driftwood and Hurricane Alley and Sol Oasis and Troy's BBQ, and also a post to promote the CRA Administrative Assistant job opening and staff used the CRA pages to promote the 10th Annual Pirates Fest. Two posts promoted Due South and the Hampton Inn, which were two sponsors of the event and there were ads encouraging patronage to some local businesses, the Boardwalk Italian Ice and the Butcher and the Bar during the events. B. CRA Economic & Business Development Grant Program Update 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 Ms. Shutt explained the CRA only awarded $21K, but they have some projects in the pipeline. They are encouraging staff to contact business on the Business Tax Receipt list to inform them of the grants C. Palm Beach County Housing Authority Auction of the Cherry Hill Lots Update Ms. Shutt explained there is one property adjacent to CRA property. The Housing Authority has exercised their 30-day delay. They need final clearance from HUD and Staff will report back to the Board as to owners of who won the bids that defaulted. The Board should know by the next CRA meeting. Chair Grant inquired if the authorization for Ms. Shutt to move forward with an acquisition would continue on through the HUD process to individuals who have defaulted. Attorney Duhy recommended affirming the ability of the executive director to bid on other lots that may be made available. Board Member Penserga and Romelus agreed as long as the cost of the land is within reason. Vice Chair Hay agreed. He asked how long those funds before the funds could be set aside for those properties, or if they can use the funds for something else and learned staff will report back, but would most likely know by the next meeting. There are still ARPA funds available. Board Member Romelus was displeased with the outcome of the Housing Authority process and had requested some items from Ms. Shutt. She wanted the five-year plan the Housing Authority Board submitted to the County and the contact information for each board member, who they report to in terms of State or federal government and any other pertinent information about their roles on this board with tax dollars. She thought the actions taken by the Housing Authority Board was not conducive to any type of affordable housing and wanted to voice her concerns to the pertinent person. Chair Grant commented the Housing Authority has public meetings in West Palm Beach. The Palm Beach County Housing Authority gets federal funding for a Board appointed by the Governor with the budget approved by the County. The County rubber stamps it to get the money. The Board is only accountable to the governor. Board Member Romelus thought it was egregious $30M was spent on impact fees and only $1.8M came back to the City. She thought it was an affront to the City. She thought it was the Board's right and duty to say something and stand against individuals who are not doing their appointed duties. It may not go anywhere, but it would air her frustration with the process and the lack of action on the part of the Housing Authority towards the City. Vice Chair Hay agreed with Board Member Romelus. He thought the Boar could speak to the Executive Director and Legal. He thought the County would want fair and affordable housing. It appears the property goes to the highest bidder on the developer side. If you work with the individual cities they would not set the opening bid high and it appears the motive was the money as opposed to rather than providing affordable housing and other benefits to the 39 municipalities within Palm Beach County. He would like to have their day in court to discuss this with the Housing 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 Authority and find out where they are gong with this. He found it unacceptable. Many of the bidders who got the properties, are backtracking. He wants to ascertain more information and get clarity of where they are going. Board Member Romelus noted many of the bidders who won properties are approaching the properties to the CRA, Cities and Habitat for Humanity because they realize the price was too much for the lots, and are trying to pass them off on the CRA. It this would have been done properly this would not have occurred, and now there are owners of land who have no intention of doing anything with the lots that are stuck with the property which may now remain vacant, contributing to slum and blight for the next 20 years. Board Member Katz supported Board Member Romelus's comments and shared her frustration. His solution and whatever communication the Board may draft is to support whatever funds the HUD made on the sale of the properties, be spent on affordable and workforce housing it in Boynton Beach. The Housing Authority has a pile of money derived from properties that were supposed to be used for affordable and work force housing, return to the City. He suggested lobbying the County Commission and acknowledge the Housing Authority did nothing. They made profit on property but did nothing for housing. Board Member Romelus agreed. Board Member Penserga also supported Board Member Romelus's comments. Motion Board Member Romelus requested drafting a separate memo to be - signed by the Board expressing the Board's sentiments and Board Member Katz's suggestions. Attorney Duhy agreed the Board had sent correspondence in the past, but explained this would be different as the letter would come from the Board. It would be signed by each member. In the past, they had legal questions, but the appropriate would be for the Board sign it. Attorney Duhy will work with the Executive Director. They would tally the total revenue from the property sold, including the one they purchased, and make a request the Housing Authority spend it in Boynton Beach. She will draft it for the Board Members' signature and it would be circulated to the members before execution. Vice Chair Hay accepted the suggestion. The motion passed unanimously. D. 2021 Holiday Boat Parade Update Ms. Coppin gave an update. Since October, she contacted City neighbors Hypoluxo, Lake Worth and Manalapan. She heard back from Hypoluxo a few weeks ago and they have $2K to contribute to move forward with the parade. The route would begin just south of the Old Key Lime house to just south of the George Bush Bridge in Delray Beach. She got a call from the Police Chief in Lantana interested in as well, but they have no funds but can provide police escort for the flotilla and public safety aid. Chair Grant would accept in-kind services from the Lantana Police as did Vice Chair Hay and Board Member Romelus. The parade previously extended to the C-15 Canal, south of Linton. She spoke with Marine Patrol from the Boynton Beach Police Department and just prior to George Bush Bridge would be a good place to stop as there is room to turn 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 around. The parade would extend from Ocean Avenue to Ocean Avenue and south. There was no response from Manalapan. Delray Beach inquired about the parade route and was informed the parade would end prior to entering Delray Beach. Motion Board Member Romelus moved to accept the in-kind donation and monetary donation from Hypoluxo and Lantana and alter the route accordingly. Vice Chair Hay seconded the motion. The motion passed unanimously. 15. Public Hearing 16. Old Business A. Discussion and Consideration of a Commercial Development Agreement between the CRA and Centennial Management Corporation for the MLK Jr. Boulevard Corridor Commercial Redevelopment and Affordable Multi-Family Rental Apartment Project This item was addressed earlier in the meeting. B. Discussion and Consideration of a Purchase and Development Agreement for the Cottage District Infill Housing Redevelopment Project with Azur Equities, LLC Ms. Shutt announced at the last meeting there were some items and the draft purchase and development agreement to finalize. The CRA has not received any comments on the project. There was a late submission, but staff has not looked at the documents sent late last Thursday. It has been three months. Staff still has reservations for the developer to undertake the project in the allotted time as it is not their skill set and it is their first single family development. Staff does not see any movement in this project. Board Member Katz stated in the run up to this and other meetings, he held back his concerns so that by the time the final agreement was ready, the terms would have been worked out. Board Member Katz advised he will withdraw his support. In their desire to get a project signed, he did not want to be stuck in a three, four, or five-year situation. Similar projects from this firm have not panned out. He would vote in favor of a pause for a couple of months and let the new Board revisit it. It is not so big a project they cannot find someone else. Board Member Penserga agreed. In August, staff recommended termination, and since then, staff requested documents over and over again, which concerned him. Information was requested many times, and when staff recommended negotiations, they gave him a chance. When he looked at their proposal, there was no evidence of single-family home construction. He had asked Ms. Shutt to look at their previous work. Last 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 month, staff visited some of the sample sites in Pompano and Davie. The project was an 11-unit multi-family rental, that occurred in 2017. After talking to Pompano staff, there were rezoning issues the first year, and they received their building permit in July 2020. Currently, half of the buildings are under construction, but none completed. This was 11 out of 80 units from the Pompano CRRA. When staff conducted a site visit at Davie, there were three or four sites and one building was constructed. This was presented to the board as a handout last month. Things are slow in coming. Board Member Penserga viewed images and when he saw the pictures, he went to the office and recalled when staff recommended termination. He read from the meeting backup and thought there was a risk they may take as long and noted there were issues with the reverter clause. There were too many things, and he was uncomfortable moving forward. Chair Grant requested Mr. Gotsman address the projects from the other projects. Azure Equities was not the contractor, they were the developers. He also asked Mr. Gotsman to explain the lateness with the submittal and how he planned to proceed. Franck Gotsman, Azure Equities, stated there were issues with the buildings in Pompano in terms of this particular and others have been completed, such as Holiday Park and Hollywood. They are working on several projects and they are talking the one with difficulties, mostly because the CRA provided land to develop 11 projects when it would only accommodate eight units. It took them more than two years to take the steps to complete the project. As for the core business, they have different partners they work with and for the Boynton project, they would use Randolph Construction who is well known in the area. They have been asked to respond to a lot of very detailed questions. The price of windows went up 20% last month and steel is increasing 15% this month. They are being put in a corner by having to keep finalizing the design and the architects have to keep reworking the projects. They are finalizing construction documents before having a development agreement, which is not the usual way to proceed. They should sit down, show the plan and work on it. They want to be sure they can actually provide the product. If he says he will build at a certain price, he needs to be able. Telling him the house has to be exactly in this specification and that price two years from now is nearly impossible. He needs to have some kind of reservation and he needs to be able to work. If they need to maintain that price, they need to make changes to the house. He has nothing to do with the increases in building materials. Randolph construction can say what is happening during the last few months. Recently another project came in and asked for another $51VI financing for the project. The margin on low income housing is minimal. There is risk and a 10% increase for steel or anything else, they would be upside. They are trying to make a commitment, but asking what size the window is hard to answer if they do not have the flexibility and they have to be able to work to make the numbers work. The keep being asked to provide answers and have provided more and more plans. They are committing $2M to build those homes and prepare a site plan for 40 homes. If there is a problem, they will not get that money back. The infrastructure they will install land the 18 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 land that is donated is for the homeowners. The more they ask to provide specific details of every little line item, it makes it hard to respond expeditiously. Vice Chair Hay asked if Azure had experience with single-family homes and learned they do, but not as a core business. They do mostly rental and large community projects. When asked what the challenge is to provide the documents and learned it was only pricing. Vice Chair Hay commented the Executive Director requested the documents. Mr. Gotsman explained these are the plan. They want detailed plans exactly what they will build two years from now once they get planning and zoning and land development approvals, and they are ready to sell the homes and build them at a certain price. Mr. Gotsman stated he provided Ms. Shutt with the best they can. Board Member Romelus stated they have been working through this for several months. Part of the delay has been because of staff. The Board approved the site plan, Development staff told him to do it a different way, and it had to come back to the Board and they had to tell staff what they approved and they wanted it this way. Some of this delay is not due to Mr. Gotsman's incompetence. She was familiar with Randolph's work. What is the issue of what they see they are asking that they are not getting from the developer. She stated the issues have been caused by staff. She would not want to go back to the drawing board if they already have a willing developer with an experienced team and even if Mr. Gotsman has not, Randolph homes has and his team has experience. Board Member Romelus asked Ms. Shutt what the issue was that makes them think there is something wrong. Ms. Shutt responded she has worked with Randolph and produced units in record time. She explained the ability to perform is based on the developer's experience, financial capability and the product he is familiar with and marketing, selling and building. In the beginning, there was back and forth because this was not a product Azure was familiar with. Ms. Shutt's acknowledged Mr. Gotsman did coordinate a lot. The issue she has is it has taken since October 18th, to deliver all the revised development agreement to Mr. Gotsman. They requested Azure provide elevations and she added the CRA has not asked for window information and specifics. There were issues in January with development staff comments, but that was ironed out by May and from May to now, they are still asking for comments to the Development agreement which was delivered to Mr. Gotsman October 21St. This is a new submittal in congruence with what they were speaking to. It is unreasonable for staff to sit and look at it. They have asked for this before Pirate Fest and it is a burden to staff to go through this and work with Mr. Gotsman. She has reached out to him after every board meeting. It is not what Ms. Shutt wants. It is what he is able to sell, build and absorb. That is the issue. She is uncomfortable that he is uncomfortable. If he has builders and income qualifiers on his team it is great, but he did commit to 25% of his construction. They always asked what was his proposal, not the CRA's and. how comfortable are they with what he has provided. They are willing to work with everyone. They need his comments for the agreement. The Board wants to see everything to ensure all know how the project is laid out and the steps. The details are meant to help him when he goes to City staff for approval to make sure his models match to some extent the conceptual plans given to the CRA Board. 19 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 Mr. Gotsman responded the rendering and elevation are the same since the beginning conceptually, and the last image was concept of the second townhouse model E. They have color charts and all they are planning to build. When they ask for more information, he cannot provide the information. If they want an elevation to exactly match the plan and know exactly what the product would look at, the architect has to finalize the elevation. They are not at that stage yet. They worked on the site plan because one remark they received was the rendering does not look exactly like the floor plan. Mr. Gotsman said it would not because the rendering is conceptual and things will be adjusted. This usually happens during planning and zoning and development order phases, not during negotiations on the conceptual plan for the entire site. When asking a question, he cannot answer its his architect. They have been working conceptually because that is where they are supposed to be, not at a point of a complete elevation. They have several models. The homes are inspired by the homes they are building, but are not that exact home. When the CRA ask him for something today and he has 10 days to respond, it is difficult for the architect to review everything in 10 days. In terms of a Development Agreement, they were fine. They had a few notes they discussed last time and staff sent a few notes of minor changes, and they are fine with what they have right now, but he questioned if they had to finalize the models they are going to build 16 months from now. Board Member Romelus queried how much change potentially could occur with what Mr. Gotsman was saying. She understood at this point in the process, it would be more of a conceptual process and as they get closer to actual build-out and going to planning and zoning, they get a more detailed rendering. Mr. Gotsman agreed. Ms. Shutt explained it should be relatively known information when someone looks at the renderings, square feet, how many bedrooms and bathrooms, if there is a garage. They are simple questions that should be in the development package. Mr. Gotsman has to develop that through this time, and it takes time to know what product works and what sells. That is the gist of the discussion. They are developing now and she did not want them to develop this now until Planning and Zoning approval because they will still have these questions as the details get worked out. They need Exhibit D to be incorporated into the development agreement. They need basic conceptual information, not construction plans. Chair Grant asked if the City Commission has to approve exhibit D. and learned they do not. It is in the Purchase and Development agreement to the CRA It will go to Planning and Development for the IPUD, and staff review and have more details but not to the extent of building construction. Attorney Duhy explained they always have a general sense of the project and it is incorporated as a term in the agreement to hold a developer in compliance with whatever the design parameters the Board feels is important. It is at the Board's discretion to determine what level of scrutiny they would like to have and include. That is the exhibit that is part of the legal documents to hold the developer in compliance to whatever the Board determines they need in the Exhibit. If it is square footage and not layout, it could be that, but as with other projects, such as MLK, they had site plans, renderings and a general sense of the project. It is at the Board's discretion, but it is part 20 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 of the agreement and part of something they use to enforce the Board's desire, whatever it may be, and that is where staff is coming from in terms of why it is being requested at this time. Board Member Romelus explained it gives further clarity in terms of what is wanted. Chair Grant commented Planning and Development has to approve the site plan and then the City Commission as part of the rezoning. He commented the City Commission has another opportunity to approve the site plan. Azure is the only one that stepped up and has continued to work with the CRA to build the project. In July 2021, the CRA bought the last property, and to say they now have to redesign it and they may purchase a property tonight adjacent to the cottage district and the Board may ask Azure to adjust it one more time. The CRA has moved the ball each time as the CRA keeps adding property. The developer oversees construction of the project. If Randolph can give more information on the construction so the CRA Board feels confident to sign the Purchase and Sale agreement with the current site plan, Planning and Zoning and the City Commission can make adjustments, and the project can move forward because if the CRA purchases another property or gives the property on First Street to the Cottage District, the plan would change. Affordable Housing in the City is the goal, but it is subsidized housing. The land they are giving the developer is the reduction of cost when they learned about the different impact fees and other charges that have to be paid associated with construction. If the developer does not pass the costs on to the consumer, it will affect their profit, they have to increase the price, or the government has to subsidize construction more. They will be removing 20 homes and building 40 homes. He supported a Purchase and Sale agreement with the design they have currently and if they need to amend the agreement to add land, it could be done later. Wayne Randolph with Randolph Construction stated he cannot speak specifically to Purchase and Development Agreement, but from a construction standpoint, they have been successfully building residential projects for almost 25 years. They built the Swinton Gardens project consisting of 11 single-family homes in five months. Specific to construction regarding pricing, he agreed with some of his comments regarding this will be the ultimate final end price a year or two now, it will be different and they do not know. He provided Mr. Gotsman with information regarding cost escalation in the last 12 months. If that is what he is being asked, he can say what is reasonable on Mr. Gotsman's perspective. He gets letters all the time about increase in materials costs. Some placed orders before November 15t, that is scheduled to be completed in February, but they cannot receive windows until March 16th. He understood those concerns. Some items are delayed. From a construction standpoint, this is residential construction, they have done this their entire career as part of what they do. He hoped the Board could find some sort of common ground that allows them to go forward. As to the local community benefits, the majority of his subcontractors are from the Boynton Beach area. Chair Grant commented the timeframe for materials is a huge factor with the deadline imposed on the developer. He did not think things would be less expensive in the near 21 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 future or the project would be built any time soon. If the developer wants the developer to provide an exact price point two years into the future, there must be that understanding. Chair Grant asked if Mr. Gotsman wanted to go through the current design and site plan to give a basic understanding of what they are approving tonight. Board Member Katz understood the issue and stated nothing can be said about the construction firm. He noted they made commitments to the Heart of Boynton and the Cottage District was the fourth project. He would like to move it forward, but did not want to move it forward in such a way it will be bogged down and failed and they have to buy their own property back from the bank at a premium with an unfinished project, through no fault of the construction firm. It not the soldiers building the house; it is the primary is the engine, it is the person saying whether they can or cannot based on the financials and their ability to run the project He appreciated the input. There was no intent to slight anyone. The project always had issues and they have not been worked out. He cannot support the project at this time and there are a million variable they cannot predict. To him they are not adequate answers. There was a November 4t" resubmittal as part of the backup. Mr. Gotsman commented their financial capability should not be in question. They are building Town Center in Northwood, 40 acres in Miami Gardens. He understood there may be concerns but there should not be concerns about financial abilities. Chair Grant looked at page 23, it discussed base pricing without the garage. Mr. Gotsman explained they tried to send as clear of a definition as possible with their different models. Chair Grant commented they have the financial information and design. He asked if the changes to the Purchase and Sale Agreement was fine. Ms. Shutt responded it was, but they need acknowledgement tonight that the tracked changes were fine with Mr. Gotsman. Chair Grant stated staff received that affirmation. The decision is to either approve the Purchase and Development agreement or issue another RFP. Azure is using between 80 and 140% of the Boynton Beach Average Median Income. Board Member Romelus could not support penalizing Azure for something happening outside of their control. She noted Centennial Management returned to the Board and the Board approved over $2M to close the gap for their construction cost. She asked if the Board was saying if there was a deviation of prices in two years the Board cannot afford to take that risk. She commented there have not been any other single-family developments in the City over the last 20 years. They have been building apartments and mixed use and now they have a once in a lifetime opportunity to build 40 single- family homes in District II and the prices are fluctuating. She was not okay with the thought of walking away from the development. What has been asked for has been delivered. She wanted to move it forward and residents in District II need community.. She believed they can still fix it and the developer can build it. Board Member Penserga thought this is not the way to proceed with a business transaction and he was uncomfortable hearing problem after problems with other cities. He thought it was not the best indicator to go forward. 22 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 Vice Chair Hay stated he has gone down this road before of seeing people not presenting information on a timely basis. He did not like being handed things and having to vote on them. It does not sit well with him and there are a lot of red flags. He wants to ask if he opts to continue with Azure if they were locking themselves in they could reject the project down the road. He is familiar with Randolph and knows they can deliver. Attorney Duhy recommended if the Board wants to move forward, they not approve the agreement as she has not reviewed anything. She noted with the project pricing, there are asterisks saying the prices are based on current market conditions and may vary. She would want to bring back a recommendation for better language, but would need to discuss it with Mr. Gotsman. From a legal perspective, there are still questions, and she did not recommend voting on a document she has not reviewed. Vice Chair Hay wants the Board to do everything possible to move the project forward. Motion Board Member Romelus suggested tabling the item until Legal and the Executive Director review and bring back a recommendation. Vice Chair Hay so moved. Board Member Romelus seconded the motion. Chair Grant suggested Mr. Gotsman speak to the Board individually, and explain the current projects the CRA mentioned and other projects not mentioned. Randolph is not the contractor in Pompano. The motion passed unanimously. The Board is looking to have the contract by the end of the year. Chair Grant sought clarification by CRA staff and Legal. Documents need to be received by December 3rd. Ms. Shutt may have questions between staff and Legal Counsel on this document only. Final questions or comments will be decided on December 14tH Chair Grant recessed the meeting for a short break at 8:59 p.m. and reconvened the meeting at 9:00 p.m. C. Discussion and Consideration of Additional Letters of Intent Received for the CRA-Owned Property Located at 211 E. Ocean Avenue Ms. Shutt presented the item. There were four Letters of Intent (LOls) for the same property and with the neighbor, the Daghers, Brian Fitzpatrick, current entity FTC and Kim Kelly. Since that time, the only remaining letters of interest are FTC Group and the future agenda was the original letter of intent by Anthony Barber for a container restaurant concept at the historic Magnuson Property. The Board accepted the letter and issued a 30-day notice. The CRA then received four other LOI's. This meeting was to have the other LOI's and make a presentation so the Board can consider them and Mr. Barber's. 23 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 Mr. Barton wants the CRA property for free and he will pay to renovate the house to an office as well as a GIS training facility. No other supplemental information requested was given. They asked for a site plan and a simple cost estimate which was not received. Mr. Barton is on line. Chair Grant asked if the CRA obtained appraisals for the properties to the north. Ms. Shutt stated they have not as staff was not directed to do so, but Mr. Fitzpatrick was present. Mr. Fitzpatrick requested the Board consider a $3.6M purchase for the 10 units to the north and he was working with the last condo unit owner. Chair Grant asked the Board what is the desire for the block, if should they offer funds to abutting property owners or start development on the Magnuson House. Board Member Katz was interested in adjacent properties, but he does not know what kind of financial position the CRA was in. They had discussed working on a loan for the Oyer properties and did not know if they can parley that to this property. He had no problem hearing about the Magnuson House and Mr. Barber. He did not see supporting GIS training on an important road in the downtown. He could not consider ownership or possession of the property itself. Chair Grant agreed. There is no nightlife complementary to the downtown like a restaurant would be. He could be interested in hearing about the sale of the northern condos before the make any decisions on 211. He is interested in Mr. Barton's proposal, but he did not want to move forward with either until they have an idea of the adjacent properties and what the CRA can do in the next four months. Vice Chair Hay agreed. He advised Mr. Barber did all he was asked to do. Mr. Barber's use is in line with what the corridor should be. There was consensus. Chair Grant requested a motion to table to the next meeting and staff contact Mr. Barton and inform him of the Board's sentiments. Motion Vice Chair Hay moved to table. Board Member Katz seconded the motion. The motion passed unanimously. 17.B Discussion and Consideration of the Purchase of 409 NE 1st Street (Heard out of Order) Board Member Katz stated he was contacted by Mr. Fitzpatrick and had not had a chance to speak with him, but he would in the future. 24 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 Ms. Shutt requested reconsidering Item 12C as there are conflict with the CRA Board meeting dates after. Chair Grant requested a motion to amend the agenda to hear item 17 B and discuss further the NE 1St Avenue and 1st Street. Motion Board Member Penserga so moved. Vice Chair Hay seconded the motion. The motion passed unanimously. Brian Fitzpatrick, 409 NE 1st Street, introduced James Arena, Briny Breezes, stated he was excited about the Cottage District project. There is a lot of development and there is a great deal of inventory for condominiums, town homes and expensive real estate and it is good to have affordable options downtown. Mr. Fitzpatrick's property would complete the project and he noted there is a park in the center of the area but the entire development could be brought together by Mr. Fitzpatrick's property on 409 NE 18t street. There could be a great green space and pass through in the HOB into the downtown area, plus have the opportunity to build two single-family homes. The package he reviewed showed there was an appraisal on the property, but the appraisal did not take into consideration the location of the property. Since they bought the other property next door it is a great investment to obtain the entire corner. Mr. Fitzpatrick stated he was working with Bradley Miller and they met with City staff and he was given approval to build a six-unit complex, but at the time, staff preferred a for rent product, but for sale was a possibility as six attached units and workforce housing gave it a 25% bump up to six. The appraisal said $183K, which is significant. Just using the lot next door, the CRA paid $268k for. Based on the asking price for Mr. Fitzpatrick's and the square footage, the property was value $68K below the value of the abutting lot. His lot was .0652 acres larger. Chair Grant noted the CRA had to demolish a home on their property, but his property is vacant and has mature fruit trees on it. The property is .318 of an acre. Chair Grant commented if they give .33 of an acre, it is 14,370 square feet, which is over $500K for what the CRA bought for the vacant land to the south. Chair Grant commented the issue is they are dealing with is finite finances. Vicki Hill, Finance Director, explained there is $1.2M left in the Property Acquisition line item. They are in November and have nearly a year to spend the funds. Chair Grant queried if the $1.2 million included the down payment for the Oyer property and learned it did, there was $850K left in the line item. He pointed out the CRA has the right to purchase the post office in January 2023. Ms. Hill explained it would be purchased the next budget year. Chair Grant wanted to ensure the CRA had enough money to buy it. The purchase price was $1.6M and they put $200K down. The $500K price is a little high right now and the CRA would likely give it away to a developer for affordable housing because the price of$500K for .3 of an acre was about $300K more than the price would be in 25 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 Cherry Hill. The CRA could buy 2/3 of an acre in Cherry Hill and get that many more houses. The property was purchased 18 years ago and would have a great return on investment. There is the other property at 211 for a lot more money. The CRA would likely try to buy them together as they would have to take a loan, because the Ne 1St and 1 St is income producing and can help pay off the financing while the CRA owns it. Mr. Arena commented both properties are strategically located. Chair Grant thought if there was a private property owner that would purchase the property for $500K, they should sell it, but he did not think they would find one yet. Mr. Arena commented if the CRA had a number in mind, they would like to hear it. Ms. Shutt noted the Cherry Hill lots at the Housing Authority Auction ranged from $191 K to $193K. Chair Grant at the current price, the maximum price right now would be $300K because it is a vacant lot. Board Member Romelus agreed with Chair Grant's estimate and was comfortable in the $250K range as it is well above the appraisal, but takes into consideration there is an adjacent property they paid $268K for that was twice as large. There are 11 months before the year is over. Her offer she felt was fair would be $250K to $275K. She noted they have not discussed the Magnuson house. They can move forward with one property. The CRA would have to get an appraisal as the vacant lot was different. The CRA spent $300K to improve the Cottage District, and this property would provide greater value than prior purchases. Board Member Katz okay with $300K, but commented the property is not going anywhere and it would be part of a small very specific plan. He thought the Magnusen House should be addressed. While Board Member Katz thought $300K was fine, but not at this time. Vice Chair Hay agreed as did Board Member Penserga. Chair Grant hoped if someone made Mr. Fitzpatrick an offer, they give the CRA the right of first refusal. Mr. Fitzpatrick stated he would lower the price on vacant lots in the hope they can move forward with the NE 1St and NE 1St Street and 1St Avenue to give the CRA the entire block. Chair Grant asked for a motion. Board Member Katz stated if there is some type of deal to be struck with the two properties, he would be in favor of it, if they obtained the NE 1St Street property and then packaging the 409 property. They have two properties the CRA will be interested in next and if they have to conduct due diligence on the Magnuson adjacent property and it paves the way for a deal. He feels a package deal at a time when they have a full view of the Magnuson House may be the best way for this or the next Board to approach it, or focus on the Magnuson adjacent and then revisit the $300K property. 26 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 Chair grant thought there was consensus and they will have to decide at the next meeting Chair Grant suggested obtaining an appraisal for the 4for the 10 condominiums. He suggested Mr. Fitzpatrick get his own appraisal, the Board would consider that as well. The Board will have to get three quotes to see which appraiser they can use. Mr. Arena commented it sounds like the CRA wants a package deal with both properties with emphasis on the Ocean Avenue property. Motion Board Member Katz moved to reorder the agenda to hear items 17 A, 16 D, 16 H, and 12 C. Vice Chair Hay seconded the motion. The motion passed unanimously. 17 A Consideration of an Interlocal Agreement between the Boynton Beach CRA and Solid Waste Authority of Palm Beach County Ms. Shutt presented the item which pertained to obtaining funds to demolish three properties one on MLK Jr. Boulevard and two structures on 4t" Street in the Cottage District. It is an interlocal and they have a year to demolish the properties. About $77K will be used for a parking lot improvement at 401 E, Boynton Beach Boulevard and continue fencing the Cottage District until a developer takes over. Motion Vice Chair Hay moved to approve. Board Member Romelus seconded the motion. The motion passed unanimously. 16 D. 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 Ms. Shutt presented the item. The Board had agreed to give $71 K for rental assistant and commercial improvements for 401 E. Boynton Beach Boulevard to renovate the property for a commercial/retail fish market. There was a LOI from Mr. Collins followed by other LOI's, but the Board selected Mr. Collins. Since April, Mr. Collins was to provide financial information, but he was unwilling to do so until last month until the CRA provided a commitment on the CRA's cost sharing for the improvements. Since last month, the CRA received notice they were able to get the money for the improvements and staff feels those funds should be the CRA's contribution to the site. Mr. Collins should be able to improve the property for the activation of his use including interior and exterior improvements. Mr. Collins indicated last month, he had an investor and staff needs the investor information to show they can improve the building to meet Code to ensure the use can be activated in the allotted time. CRA and City staff will try to handle the parking lot improvements as they have to spend the funds within a year. They need Mr. Collins to send the information to the CRA. She did not know if the costs 27 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 would be supported with his financial backers. The CRA also needs the lease agreement which was sent to him in June in order to move forward. There was proration of the taxes. It was $2,500 a month for 10 years in one-year renewals. When the money was pulled from the grant, all was put on hold until last month when it was reinstated. They only had two weeks to get the cost break down. Ms. Shutt believed it was four months. The Board never had this money before and the Board was willing to entertain a grant application for $55K and the remaining $21 K for rent assistance, but it was not what they were recommending now because the CRA can do the parking lot now, but the CRA needs information for the lease agreement and what he plans to do for the build out for the interior renovation. Mr. Collins understood the CRA had grants for property owners to improve their business which increases its property value. Now he is increasing the CRA's property value, and he questioned why he would not be eligible for funds to increase the CRA's property value. Chair Grant explained the Executive Director does not have the authority to withdraw the Board's recommendation from the last meeting and is now making a new recommendation about the Economic Development grant they offered at last month's meeting because at one time Mr. Collins was responsible for the parking and now he is not. The CRA needs the final comments from him to give to the Board's attorney. The lease agreement they have is not valid and they need a final lease agreement and design. They can finalize all by the next meeting. Ms. Shutt recommended he go back to the draft and give comments so they can work with their attorney and not the day before they to send out the packet. Ms. Shutt thought the parking lot could be built completed in six to nine months. Chair Grant the lease has to have language to say the parking lot is available or him to run his business. Mr. Collins cannot open the business until the parking is done. They will work as fast as they can to coincide with Mr. Collins improvements. Board Member Katz supported Ms. Shut's recommendation. It was also pointed out the grant is up front money, unlike the economic development grants which are reimbursable grants. Chair Grant supported allowing adjusting an Economic Development Grant to $20K, the CRA Attorney create a new lease agreement with guidelines, send it to Mr. Collins and return it to the CRA by November 3rd. The $20K is for the improvements. Board Member Katz supported approving the Solid Waste Authority grant and $20K for however he wants to uses it. Chair Grant requested a motion to direct Board Counsel to update the lease guidelines and approve the Economic Development Grant maximum at $20K. The guidelines were for the development timeframes regarding parking lot construction, the interior buildout construction and move in commencement of the lease date along with changes to the grant. 28 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 Motion Board Member Katz moved to approve. Board Member Romelus seconded the motion. The motion passed unanimously. E. Consideration of a Second Amendment to the Purchase and Development Agreement to delete the Flex Space for a New Neighborhood Officer Program Office in the Ocean Breeze East Project This item was addressed earlier in the meeting. F. Review of Marina Parking Management - Rules and Regulations This item was addressed earlier in the meeting. G. Project Update for the Purchase of the Properties Located at 511, 515 and 529 E. Ocean Avenue This item was addressed earlier in the meeting. H. Consideration and Discussion of Extension of Time to Begin Construction on the Bride of Christ Daycare Center at NE 10th Avenue Ms. Shutt explained they are asking for a one-year extension. There were no objections to the request. Board Member Katz asked if this impacted the reverter clause. Chair Grant had requested they put it out 24 months for commencement of construction, which is when the reverter clause would kick in. Chair Grant wanted the applicant to come back in February and say where are they in the permit process. Ms. Shutt thought planning and zoning approval for a daycare in a residential District and receive site plan approval. The lot the CRA gave them was a residential lot. Chair Grant requested a status update in January. Board Member Katz should we table this to February. Chair Grant wanted to give them a one-year extension as the community needs the day care. The timeline expires in January 2022 to commence construction and they could come back in December, before the expiration date. Motion Board Member Katz moved to table this item to January. Vice Chair seconded the motion. The motion passed unanimously. Ms. Shutt noted there are some conflicts in 2022 meeting dates which the Board reviewed: January 11, 2022, was a Special General Election, but it did not affect the City or the CRA; 29 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 February 8 was fine; March 8 is Municipal Elections so it should be moved to the March 9th; November 8th should be moved to November 9th, 17. New Business A. Consideration of an Interlocal Agreement between the Boynton Beach CRA and Solid Waste Authority of Palm Beach County This item was addressed earlier in the meeting. B. Discussion and Consideration of the Purchase of 409 NE 1st Street This item was addressed earlier in the meeting. 18. Future Agenda Items A. Discussion and Consideration of a Tax Increment Revenue Finance Agreement between the CRA and Centennial Management Corporation for the MLK Jr. Boulevard Corridor Commercial Redevelopment and Affordable Multi-Family Rental Apartment Project Chair Grant stated he spoke to Centennial Management about was using some of the left-over Cherry Hill funding for the affordable housing project. 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. Consideration of a First Amendment to the Interlocal Agreement with the City of Boynton Beach for Improvements to the Sara Sims Park Amphitheater D. Discussion and Consideration of Interlocal Agreement between the CRA and the City for Partial Funding of Economic Development Plan performed by Florida International University E. Consideration of Broker of Record Contract for Property and Casualty Insurance F. Consideration of the Revised CRA Human Resource Policies and Procedures Manual 30 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 9, 2021 19. Adjournment Motion Vice Chair Hay moved to adjourn. Board Member Romelus noted thee was an incident with Mr. Barber and requested someone reach out to him. The motion was duly seconded. The meeting was adjourned at 10:05 p.m. Catherine Cherry Minutes Specialist 31