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Minutes 02-03-22 MINUTES COMMUNITY REDEVELOPMENT AGENCY ADVISORY BOARD 100 E. OCEAN AVENUE, BOYNTON BEACH, FLORIDA THURSDAY, FEBRUARY 3, 2022, 6:30 P.M. PRESENT: Sharon Grcevic Thuy Shutt, CRA Executive Director Yvonne Skovron Timothy Tack, CRA Asst. Director Aimee Kelley Theresa Utterback, CRA Dev. Manager Naomi Cobb Vicki Curfman, Admin. Assistant Joe Josemond Tara Duhy, Board Counsel Angela Cruz, Vice Chair (arrived at 6:34 p.m.) Jennifer Oh, Prototype-Inc. Golene Gordon, Chair 1. Call to Order Chair Gordon welcomed all to the meeting and called the meeting to order at 6:32 p.m. 2. Pledge of Allegiance The members recited the Pledge of Allegiance to the Flag. 3. Roll Call Roll was called. A quorum was present. 4. Agenda Approval A. Additions, Deletions, Corrections to the Agenda—None. B. Adoption of Agenda MOTION Motion made by Ms. Grcevic, seconded by Ms. Cobb, to approve the agenda. In a voice vote, the motion passed unanimously. (7-0) 5. Information Only—None. 6. Public Comment Ernest Mignoli, 710 NE 7t' Street, also known as Harbor Hall Inlet Club 1. The development was built 46 years ago and is sinking; it is probably as bad as the Surfside building that collapsed, and they cannot get Meeting Minutes Community Redevelopment Agency Advisory Board Page 2 February 3, 2022 anyone from the City to write it up and get an Engineering report. The issue in Boynton Beach is the same as Surfside. Ms. Shutt introduced and welcomed their new Assistant Director, Timothy Tack, who is a professional Engineer. He has worked in the Redevelopment field over ten years and in government over 15 years. He also worked at the Delray Beach CRA. 7. Consent A. Approval of CRA Advisory Board Meeting Minutes - November 4, 2021 MOTION Motion made by Ms. Cobb, seconded by Mr. Josemond, to approve the November 4, 2021 Minutes. In a voice vote, the motion passed unanimously. (7-0) 8. Assignments A. Pending Assignments 1. Review of Commercial Properties within the CRA Area Thuy Shutt, CRA Executive Director, explained the assignment was for this Board to look at five available properties and put them into three categories; presumed now as a land banking opportunity, presumed future date, or if it does not fit in the CRA mission. Direction was given not to consider the costs, only the property, and have discussion. The results of this meeting will be forwarded to the CRA Board at the March 9, 2021 meeting for consideration. Ms. Shutt reported that the property located at 1213 NW 4t' Street is a convenience store and a non- conforming use in the R-2 Zoning District.; the property is being offered at $400,000. It is under chronic nuisance review, which is a property where the owner or person responsible fails to make corrective actions, resulting in the life, quality, safety, and health of the community. There should be some pattern for repeated calls for services. This is one of those properties in which the CRA feels is a mission to eliminate slum and blight, as there are blighted conditions. There is a property owner and a tenant, so the property owner may not be the cause of this, it might be activities going on and failure to run best management practice on the site to prevent these types of uses or it could be external causes causing the nuisances to come about. Chair Gordon commented that the property almost has a 20-year lease. Ms. Skovron mentioned zoning. She did not feel the CRA District, as a community, would benefit from a store because it is in the back. Ms. Shutt stated the property will have to be rezoned because it is a non-conforming use, which means it is Commercial in a Residential and Land Use. The R-2 is the Zoning District, so it is Residential Duplex, which is what would be allowed. Staff would be looking to the CRA Board for direction if they were to Meeting Minutes Community Redevelopment Agency Advisory Board Page 3 February 3, 2022 purchase the property under the right condition and at the right price; they would probably look at redevelopment to single-family or duplex, or Residential Use. Ms. Grcevic questioned how long the Business License has been in effect without interruption. Ms. Shutt replied probably since it was created or built; there has been continuous use. Ms. Grcevic asked how they could take something from someone who has a lease until 2040 and the license has never been interrupted. Ms. Shutt indicated that would be coordinated as they are doing their due diligence. The CRA staff would not recommend the Board purchase the property with the tenant;they would have to inherit a lot of issues. Chair Gordon questioned if the CRA can buy the tenant out. Ms. Shutt commented that they have not had that discussion with the owner. As they do their due diligence, they can see what their options are and it is up to the property owner to deal with the contractual obligation with the tenant, it is not something the CRA would be able to do. They can always negotiate with the CRA and the CRA Board Attorney, but this would meet the CRA mission in terms of eliminating slum and blight if the site were to be redeveloped. Ms. Grcevic asked if anyone is keeping an eye on the Business Tax to make sure they are not falling behind. Ms. Shutt stated it is monitored by the City Code, as well as Police and Fire since there is a pattern. Ms. Kelley questioned if there are liens on the property. Ms. Shutt thought as part of the chronic nuisance, there may be some liens. The Code allows the City to identify certain things it can mitigate as blighted conditions and then they enter an agreement through the Special Magistrate,who has the authority to enforce it, and the City has the authority to clean up whatever is needed and charge the property owner. Liens can be worked out or pursued on the property if things do not get corrected timely. Mr. Josemond asked if the CRA should get involved since this is business/entrepreneur related. Ms. Shutt understood several businesses have been coming in and apparently the bad elements take over. Chair Gordon questioned if the City acquired the property if any investor/entrepreneur can come in the future and build. Ms. Shutt advised the CRA could explore possibilities of what to do with the building, but it is non- conforming and does not meet setback and parking standards, so it is limited in what can be done with the Meeting Minutes Community Redevelopment Agency Advisory Board Page 4 February 3, 2022 structure and use. Normal maintenance and repairs can continue, but it cannot expand; it needs to meet Code if there are a lot of substantial improvements. The property should be Residential. Ms. Cobb commented if there is a property in the area that needs CRA assistance, this is the property. Vice Chair Cruz stated the property is not safe and it is creating issues for the City; something should be done about it. Chair Gordon thought they should pursue now as a land banking opportunity if they can get it without the tenants. Ms. Shutt stated they can make sure when they speak to the Attorney that he looks into and verifies that if they do pursue the property, it is under the condition they are not going to be dealing with the tenants. MOTION Motion was made by Ms. Cobb, seconded by Ms. Cruz, that the property located at 1213 NW 4t' Street be pursued as a land banking opportunity. In a voice vote, the motion passed unanimously. (7-0) Ms. Shutt advised the property located at 2821 South Federal Highway is currently a hotel with 140 units that is being offered at$9.1 million. Many improvements need to be done, interior as well as exterior, and it is on 2.89 acres. This meets the CRA mission for redevelopment and the elimination of slum and blight. This property is a chronic nuisance. Ms. Skovron questioned if there is a height restriction. Ms. Shutt stated there was conversation about converting this to multi-family, but it would require Planning and Zoning changes because it is zoned for Commercial. Ms. Grcevic asked if there has been any interest in purchasing and redeveloping the property. Ms. Shutt indicated they have had discussions with some contractor purchasers and the valuation is that it would be cost prohibitive to buy the property for $9.1 million and then demolish it. They could submit Building permits and update the structure,which would probably be the best and quickest scenario to turn it over and start collecting revenue. They have heard some people would like to keep the property, but they have to look at the price versus what has to be put into it. Since the asking price is so high, there could be something recommended to the CRA Board should the property be sold to a new owner. A recommendation could also be to the Board to allocate funding to work with the new owner to make sure the property can be redeveloped in the right way and assistance in kind, or they can try to connect them with any available resources. They hate to offer anything if they do not know who the owner is. Ms. Skovron mentioned tax income. Meeting Minutes Community Redevelopment Agency Advisory Board Page 5 February 3, 2022 Ms. Shutt stated at the time of acquisition, the buyer will have to do lien searches, etc. to make sure everything is current. Ms. Grcevic asked if the taxes are current and Ms. Shutt replied as far as they know, everything is current. Chair Gordon questioned if the property was appraised, but Ms. Shutt did not know. Ms. Cobb mentioned that for her, this is one of the missions of the CRA and this is a blighted property and what has happened in that property over a number of years has affected lives and has cost our City resources in terms of Emergency and Police Services, and it meets the definition. Mr. Josemond commented that the price is too much. Ms. Kelley stated the property needs to go; it is not something the CRA could handle at this point. Maybe the category should be in the future; it is something the area needs to work on, but where it is now is out of the realm of possibility. It should never be off the table to get rid of the slum and blight within the City; it needs to be pursued. Ms. Grcevic expressed concern if the property is removed where the trouble will go. Ms. Shutt advised one of the suggestions is to recommend working with the new owners if the CRA wishes to pursue the property at a later date; that way whatever grant incentives the CRA might have, such as exterior improvements, they know someone actually owns it and they can work with the entity versus trying to pursue the property themselves. Chair Gordon thought they should purchase the property at a future date, that way the price would go down as well. MOTION Motion was made by Ms. Skovron, seconded by Vice Chair Cruz, for the property located at 2821 South Federal Highway to be pursued at a future date. In a roll call vote,the motion passed with Ms. Cobb and Mr. Josemond in opposition. (5-2) Ayes: Grcevic, Skovron, Kelley, Cruz, Gordon Nays: Cobb, Josemond Ms. Shutt stated the property located at 1111 South Federal Highway is a gas station. The property is approximately .35 acres, it is a vacant site, and is C-4 Zoning that can be used as General Commercial, with a maximum height of 45 feet. Ms. Cobb commented that the Senior Center is across the street from this property. Chair Gordon mentioned the property is small and asked if it is for sale. Ms. Shutt replied the property is for sale. Meeting Minutes Community Redevelopment Agency Advisory Board Page 6 February 3, 2022 Chair Gordon noted the property is for sale for $1 million. Ms. Skovron questioned if this meets the CRA mission. Chair Gordon did not believe this fits the CRA mission and the Board concurred. MOTION Motion was made by Ms. Grcevic, seconded by Ms. Kelley, that the property located at 1111 South Federal Highway does not meet the CRA mission. In a voice vote, the motion passed unanimously. (7-0) Ms. Shutt indicated the property is located at 1310 North Federal Highway and noted it does not meet the CRA mission. Chair Gordon did not think the property meets the CRA mission and the Board agreed. MOTION Motion was made by Ms. Kelley, seconded by Mr. Josemond, that the property located at 1310 North Federal Highway does not meet the CRA criteria for acquiring the property. In a voice vote, the motion passed unanimously. (7-0) Ms. Shutt advised the property located at 812 North Federal Highway is currently a restaurant, approximately 3,128 square feet, on .35 acres, and the sale price is $999,000. Ms. Grcevic commented this is a little standalone business. Ms. Shutt advised the property is a viable Commercial use, but it is probably not a priority for the CRA to look at. Chair Gordon did not think this fits the CRA mission. MOTION Motion was made by Ms. Skovron, seconded by Ms. Kelley,that the property located at 812 North Federal Highway does not meet the CRA mission. In a voice vote, the motion passed unanimously. (7-0) B. Reports on Pending Assignments —None. C. New Assignments —None. 9. CRA Board Items for CRA Advisory Board Review and Recommendations A. Old Business —None. Meeting Minutes Community Redevelopment Agency Advisory Board Page 7 February 3, 2022 B. New Business —None. 10. Future Agenda Items Ms. Shutt indicated that as properties come up, they will make sure they are brought to the Board's attention. 11. Adjournment There being no further business to discuss, Chair Gordon adjourned the meeting at 7:24 p.m. [Minutes transcribed by C. Guifarro, Prototype, Inc.]