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Minutes 02-01-22 Minutes of the Community Redevelopment Agency Board Meeting Held on Tuesday, February 1, 2022, at 4:30 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 4:34 p.m. 2. Invocation Chair Grant gave the invocation. 3. Pledge of Allegiance The members recited the Pledge of Allegiance to the Flag. 4. Roll Call Roll call established a quorum was present. 5. Agenda Approval A. Additions, Deletions, Corrections to the Agenda B. Adoption of Agenda Motion Board Member Penserga moved to approve the agenda. Vice Chair Hay seconded the motion. The motion passed unanimously. 6. Legal None. Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 1, 2022 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 Chair Grant disclosed he had discussions with Centennial Management and will be meeting with Affiliated on Friday. Vice Chair Vice Chair Hay had no disclosures. Board Member Romelus spoke with Affiliated Development. Board Member Penserga spoke with Centennial and Affiliated in the past. 8. Public Comments None. 9. Public Hearing 10. Old Business A. Discussion and Consideration of a Lease Extension Request for Jean O. Francois'and Rosena Joseph for the CRA-Owned Property Located at 133 NE 4th Avenue Thuy Shutt, Executive Director, explained the CRA received a request to extend a lease as the tenants purchased a property but the lease for the tenants in the newly purchased property did not yet expire. The CRA received demolition bids for the property and they will demolish this property and the property to the east separately. The demolition will be paid for by a grant from the Solid Waste Authority, and would allow the above tenants to remain in the property until May 23, 2022. Staff recommended approval and reviewed options. Attorney Johnathan Jacobson was present and thanked the Board for the extension. She spoke to his clients about rent, which is a hardship. He hoped any rent would be minimal. The new mortgage a month is $3,200. They receive $2,500 a month from the tenants in the home they purchased. They are paying $700 out of pocket. After discussion, there was agreement $300 a month. Motion Vice Chair Hay moved to assess $300 a month rent starting in February, and giving February 15th, as a deadline to pay February's rent and for March, April and May, rent is due by March 5th. Board Member Penserga seconded the motion. The motion passed unanimously, Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 1, 2022 B. Approval of a Development Agreement between the CRA and Centennial Management Corp./Wells Landing Apartments, LLC for the Commercial Component of the MLK Jr. Boulevard Corridor Mixed Use Housing Project Ms. Shutt explained the item was postponed from the last meeting. The next three items are related to the Heart of Boynton Village Apartments. She thanked the CRA Attorney and all the attorney's for working out the language. One agreement is a clean copy and the other is a red lined copy. Kathryn Rossmell, Lewis Longman and Walker, were agreed on by all parties. There were two outstanding issues with the current agreement, which was how and when the development agreement could be assigned if the lender took over the property. If the developer has the property taken possession or ownership of, by the lender then, the lender would have the option to have this agreement assigned to them, and they would take on the responsibility of the lender as well. They would have to provide notice to the CRA that is what they intend to do and instead of payment by check, payment would be made via electronic transfer. Motion Board Member Romelus so moved. Vice Chair Hay seconded the motion. The motion passed unanimously. C. Approval of a Second Development Agreement between the CRA and Centennial Management Corp./Wells Landing Apartments, LLC for the MLK Jr. Boulevard Corridor Mixed Use Project Chair Grant noted they asked the Developer for fictitious name of Heart of Boynton Village Apartments. Attorney Rossmell explained she did not know, so this entity would be the viable entity they can form a contract with. Elizabeth Roque, Centennial Management, indicated they were working on the fictitious name for Wells Landing LLC. Attorney Rossmell explained this development agreement is for the residential portion of the same project. The amendment was to clarify the original purchase and development agreement is on top of a prior Purchase & Development Agreement executed by the Board. If the prior agreement is amended those changes would be effective in this agreement, there was the change that payment would be made via electronic fund transfer into an account designated by the developer for any payments made out and the same in the assignment language was added to this agreement to provide that in the event that the construction lender or permanent lender takes possession of the property or ownership of the property then they will have the option to receive assignment of this agreement and take the burdens and benefits of this agreement. With regard to a discussion held of whether there needed to be joint and Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 1, 2022 several liability of the officers signing on behalf of the business, they discussed a different solution in this agreement, which regards project compliance. In the past, the Board accepted construction project completion guarantees and in lieu of that type of joint and several liabilities, they added a paragraph to accomplish that saying if there is a breach of the original purchase and development agreement in the substantive performance, not a technical default, in terms of constructing the project, meeting a deadline and using contractor type things, that any breach in that agreement would also be considered a breach of this agreement. With those changes, the language has been agreed to by all parties. Motion Board Member Penserga moved to approve. Vice Chair Hay seconded the motion. Chair Grant commented when dealing with all these agreements and moving forward, especially with the name of the complex, they have a legal entity approved that has been approved by the Board of the Heart of Boynton Village Apartments. Elizabeth Roque, Centennial Management, explained it would be a fictitious name, d/b/a as Heart of Boynton Apartments. Chair Grant requested they contact Ms. Shutt when the name becomes official. Vote The motion passed unanimously. D. Approval of a Tax Increment Revenue Finance Agreement between the CRA and Centennial Management Corp./Wells Landing Apartments, LLC for the MLK Jr. Boulevard Corridor Mixed Use Project Attorney Rossmell noted a different term regarding the TERFA, the developer agreed to a paragraph that states the developer will ensure that each rental unit contains a washing machine and dryer, and the form of payment was changed to electronic funds transfer instead of payment check. The assignment language in the event the permanent or construction lender takes over the project or becomes the property owner then they have the option to accept the assignment of this agreement and the burdens and benefits thereof upon notice to the CRA. Motion Vice Chair Hay so moved. Board Member Penserga seconded the motion. The motion passed unanimously. Chair Grant thanked Centennial for their work and looked forward to the groundbreaking. Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida February 1, 2022 Michele Roque, Centennial Management, announced all permits were approved and have their first construction meeting at the jobsite on MLK Jr Boulevard on Monday, they plan a groundbreaking some time in 2022, and Centennial Management thanked the Board Members. E. Update on Negotiations with Affiliated Development, LLC for the 115 N. Federal Hwy Infill Mixed Use Redevelopment Project Ms. Shutt stated since the last meeting when the CRA selected Affiliated, they have met several times with the City and the Affiliated development team. The staff report contains the progress of those meetings. They are also working diligently with legal counsel and Affiliated to provide terms and draft agreement to the Board at the March 9th meeting. The City will meet with Affiliated regarding the parking garage and/or easement agreement for it. The terms being negotiated were contained on the cover sheet. The CRA will look at purchase and development agreement as well as the TERFA. Jeff Burns, Affiliated, agreed they were working to complete the agreements. He hoped the agreements would be completed in a few weeks. They have had good discussions with City. City staff is working with consultants, including bond counsel. Things were going smoothly. In addition to the two CRA agreements, they will have two agreements directly with the City for the garage. As for the 209 N. Federal Highway project, it will be part of the CRA agreement, but they can negotiate further if the property is acquired. 11. Future Agenda Items 12. Adjournment Motion There was no further business to discuss. Vice Chair Hay moved to adjourn. The meeting was adjourned at 5:01 p.m. Catherine Cherry Minutes Specialist.