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Minutes 01-10-22 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD VIA GOTOWEBINAR PLATFORM, ON MONDAY, JANUARY 10, 2022 AT 5:30 P.M., AT CITY HALL, COMMISSION CHAMBER 100 E. OCEAN AVENUE, BOYNTON BEACH, FL PRESENT: Steven B. Grant, Chair Thuy Shutt, Executive Director Woodrow L. Haw, Vice Chair Tara Duhy, Board Counsel Justin Katz, Board Member Kathryn Rossmell, Board Counsel Ty Penserga, Board Member Christina Romelus. Board Member 1.Call to Order Chair Grant called the meeting to order at 5:31 p.m. 2. Invocation Claude Maxime, Bride of Christ Tabernacle, gave the Invocation. 3. Pledge of Allegiance The members recited the Pledge of Allegiance to the Flag. 4. Roll Call Rall call established a quorum was present. 5. Agenda Approval A. Additions, Deletions, Corrections to the Agenda B. Adoption of Agenda Motion Vice Chair Hay moved to approve the agenda. Board Member Penserga seconded the motion. The motion passed unanimously. 6. Legal A. Approval of the Settlement Agreement between the Boynton Beach Community Redevelopment Agency and Legacy Photography LLC Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 Attorney Duhy wished all a Happy New Year and stated the CRA received a letter after the Haunted Pirates Fest and Mermaid Splash indicating the CRA used a photo without authorization. After discussion with opposing counsel, a settlement was reached for $7,500 with no liability to the CRA and the CRA cannot use the photo in the future. Thuy Shutt, Executive Director, advised safeguards have been put in place for future use. Board Member Romelus asked if vendors, when contracted, have to have some type of liability coverage prior to working with the CRA. Ms. Shutt explained they do, but the watermark was very faint and they did not see it clearly when they superimposed it on their background. It was brought to their attention. Board Member Katz asked if they could add language to future contracts that if they use any unauthorized imagery or content, they are solely responsible and the CRA is indemnified and they would be the party to be sued. Attorney Duhy stated they would ensure it is included in contracts with third party vendors. Chair Grant commented if that watermark was not clearly visible, would they have a case to fight, and learned they would, but not for $7,500. Motion Board Member Penserga moved to approve. Board Member Katz seconded the motion. The motion passed unanimously. 7. Informational Items and Disclosures by Board Members and CRA Staff: A. Disclosure of Conflicts, Contacts, and Relationships for Items Presented to the CRA Board on Agenda Board Member Katz spoke to Jeff Burns, of Affiliated. Chair Grant spoke with Hyperion, Centennial, Affiliated and S. Florida Marine Bpord,Member Romelus wished all a Happy New Year. Board Member Penserga spoke with Jeff Burns, Hyperion, Attorney Bonnie Miskel and Centennial Vice Chair Hay spoke with Jeff Burns, Elizabeth Roque of Centennial and pwayne, Randolph 8. Announcements and Awards A. Announcement of Art Walk Event 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 Mercedes Coppin, Business Promotions and Events Manager, stated on Saturday, January 22"d, from 6 p.m. to 9 p.m., the CRA will partner with the Boynton Beach Art District. It is a monthly event held at 410 W. Industrial Avenue. There is free parking on W. Industrial Avenue and offsite from one business parking lot on the northern end of the Avenue. They are working to secure shuttles from the parking lot to the event site. The CRA is still accepting vendors, including art, craft and food vendors. Those interested in participating or additional information can be obtained by emailing CoppinM@bbfl.us. The event is a favorite event of Board Member Penserga. He asked if they can assist with lighting. Ms. Coppin advised they are adding light towers on the event and for the offsite parking lot. 9. Information Only A. Public Relations Articles Associated with the CRA 10. Public Comments Tory Orr, 106 NE 7t" Avenue, was present regarding the future project on 4th and 5th and had signatures of people in the community, for and against, Azur handling the project. He saw some of the work Azur has done, completed projects and some that have Clot been,completed for years in predominantly,black areas. He questioned made t eynton s4 Special they yuould Deme tQ �Q sten to wild the cQmmunityr in 0 yewr:. orwo,rnrhen they have_not finished down it Pompano. He:no4ed Azur w?fald be getting the land,for $10, and;the City is struggling to.put dash cams iri;police cars: Fie left.the. signatures with the Clerk: He thought there were good commentsmade and advised he did read about Azur Equities LLC. He pointed out one property on MILK in Pompano was still warded up. Chair Grant explained all the land on MILK was sold for $10. It is a government subsidized project and that is why it was sold at a loss on the CRA level. Wesley Shuler, 6060 W. Atlantic, Delray Beach, stated he has a landscaping business and he travels allot working for schools and the government. He reviewed the language regarding the Cottage District project by Azur and thought it is a bad deal as it will put the City in the same position as the City was with City Hall and other developer. Sometimes the money looks good, but sometimes it will burn them in the end. If Azur wants to sell the equity from the homes in the Cottage District, the buyer cannot get any for 15 years. He thought it was a bad deal. Kim Kelly, 529 E. Ocean Avenue, went on record they are now under the CRA and she was looking for an essential lease, and funding from the CRA to relocate or as a stipend of grant funds. She was seeking about $300K and noted the move will cost them about 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 $500K. Chair Grant requested consensus to put the terms they are requesting and how long of an extension she sought in writing and they can discuss it at the next meeting. Board Member Katz had no problem with the extension, but noted during the Affiliated presentation, that matter would be taken care of. He asked Ms. Shutt if it was stated. Board Member Romelus also understood it was being handled by Affiliated. Ms. Shutt, explained the grant program only allows up to $50K reimbursement, but it does allow for any kind of relocation costs for redevelopment, which is available to all eligible businesses. As for the relocation Ms. Kelly referenced, they have never given that much relocation assistance to a tenant. Before they commit to anything, they have to go through negotiations with Affiliated as they signed with Ms. Kelly already. When they sign the property over to Affiliated, they have every right to negotiate and have a side agreement with Ms. Kelly already for the relocation and then sequence the construction to ensure it is mutually beneficial for all parties. Ms. Kelly agreed, but wanted it on record, that they were looking to be secure. This is a move for them that was not anticipated six months ago. Now they are faced with a huge debt and if there are grants from a developer, that is all they are looking for. She is going into her retirement funds for the move and wanted to be recognized that there will be some assistance one way or the other to ensure their future and not put them in debt so that they cannot get out of that hole. Chair Grant explained this is contingent on the contract she has with Mr. Burns. Chair Grant explained they will discuss that item and the cost of the build out. Ms. Kelly wants the same benefits as anyone else that would assist her in their move. Freddie Brinley, Apt 5, 517 E. Ocean Avenue was present. Chair Grant noted this item was item 17C and they would move the item up on the agenda. There were no objections. Ramona Young, 101 S Federal Highway, does not usually attend CRA meetings, but wanted to challenge Board Member Romelus, Vice Chair Hay and Chair Grant on their thought process on Azur when all see red flags and they would vote to put the project through. She used to be on a zoning board and red flags signify something is not as it should be. The City already has a lawsuit with the developer for Town Square. There is a vacant lot that is supposed to have a building and there is nothing there and now there is a $7,500 lawsuit. She thought it was unreasonable. If there was a petition with signatures with both pros and cons, she thought the item should be tabled. From what she saw, she asked if the Board would put faith in a developer that had photos of projects in the newspaper that looked like bombed out areas. She did not want it to be a debacle and found it very upsetting. Scott Rudderow, 517 E. Ocean Avenue, stated they were asking for an extension. Chair Grant advised this item would be moved up. 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 Chair Grant requested a motion to move Items 17 C and D and Item 16 1 before the Consent Agenda. Motion Board Member Penserga moved to approve as amended. Board Member Katz requested an amendment to the motion to move up, but also move CRA Projects in Progress to after New Business. Board Penserga accepted the amendment Board Member Katz seconded the motion. The motion passed unanimously. 17 C. Discussion and Consideration of a Lease Extension Request for Mr. Freddie Brinley located at 517 1/2 East Ocean Avenue, Apartment#5 (Heard out of Order) Ms. Shutt noted Mr. Brinley did not indicate how long of an extension he wants. Mr. Brinley advised he looked for apartments, but rents doubled and he was asking the VA for assistance. If he cannot move in Boynton Beach, he will have to look elsewhere and return to Kentucky. He would like to have as long as possible to look for another rental. He needs a one bedroom. Mr. Brinley's lease expires January 5th. Ms. Shutt explained the building is a pretty old building and it is non-compliant. There were safety concerns. The CRA will work with him, but staff does not want the holdover to be indefinite. Chair Grant suggested as with the prior landlord, they not allow anything more than 90 days. There was agreement Mr. Brinley would remain for another 90 days with rents due on the 5th. He did make his January payment. Motion for 17 C. Board Member Katz supports a 90-day extension. Vice Chair Hay seconded the motion. The motion passed unanimously. 17 D. Discussion and Consideration of a Lease Extension Request for Mr. Scott Rudderow located at 517 1/2 E. Ocean Avenue, Apartment#3 (Heard out of Order) Ms, Shutt recommended an extension to Mr. Rudderow's lease. Mr. Rudderow stated he hoped to leave at the end of January. His lease ends January 14th, but he preferred to stay until the middle of February. There was agreement Mr. Rudderow would vacate on or before February 14th by 5 p.m. �Vlotio.n_fot�,17 Q. Vice Chair Hay so moved. Board Member Penserga seconded the motion. Rent will be assessed, but the CRA will use the security deposit. Attorney Dully explained this is an agreement not to enforce any eviction based on rent and holdover. The motion passed unanimously. 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 17 I. Discussion and Consideration of a One-Year Extension of Time to Begin Construction on the Bride of Christ Daycare Center at NE 10th Avenue (TABLED 11/09/21) (Heard out of order) Motion Board Member Romelus moved to remove from the table. Vice Chair Hay seconded the motion. The motion passed unanimously. Chair Grant thanked the Church for the letter. It was explained the Church closed on the property two years ago and had 24 months to commence construction and then six to eight weeks later, the Corona virus arrived and the congregation took a hit. Over the last several months, they worked with Valley Bank to finance construction for the 40-space child care facility, got a contractor which the Board approved, and hired an engineer to develop preliminary plans they submitted to the City which were not yet approved. They are requesting a one-year extension to commence construction of the facility. Claude axlme-Was,presont.:. . Chair Grant stated if the'one-year extension is granted, he would want an update after Ms. Shutt commented they will assist the applicant because they will need zoning approval and could get it done in a year. It would be a conditional use. Day care is not a permitted use in a residential area. That is also a three to four-month process.,When'the site;plan`is approved,,they have to submlt for approves. Tory Orr, gave address, asked what percentage of District II youth will be allowed there and learned it was approximately 95% of local youth and the rest is for the community at large. Motion Board Member Katz moved to approve the one-year extension to commence construction, boots on ground with reasonable diligence shown through the permitting process, and a six-month update provided to the Board on the permitting status. Board Member Romelus seconded the motion. The motion passed unanimously. 11._CRA Advisory Board A. Pending Assignments B. Reports on Pending Assignments These items were heard after New Business. 6 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 12. Consent Agenda A. Approval of CRA Board Meeting Minutes - December 14, 2021 REVISED B. CRA Financial Report Period Ending December 31, 2021 C. Approval of 90-day Extension for the Commercial Property Improvement Grant for The Coffee and Ale Exchange, LLC d/b/a Bond Street Ale and Coffee Located at 400 N. Federal Highway, Unit 12 D. Approval of Commercial Property Improvement Grant Program in the Amount of$25,000 for Alberta and Octavia Bell for the Commercial Property Located at 130 E. MLK Jr. Boulevard Motion Vice Chair Hay moved to approve the Consent Agenda. Board Member Penserga seconded the motion. The motion passed unanimously. 13. Pulled Consent Agenda Items None. Old Business 16. A. Discussion and Consideration of a Development Agreement between the CRA and Centennial Management Corporation for the Commercial Component of the MLK Jr. Boulevard Corridor Mixed-Use Housing Project (Heard out of Order) Ms. Shutt stated the agreement was presented to the Board and Centennial wanted to convert this to a loan agreement, but since then changed their mind. They would like to pursue the funding agreement as presented. Staff made progress with the language negotiations and they provided the latest draft to the Board. Elizabeth Roque, Centennial Management, stated after reviewing the taxes, they decided they do not need a loan and they are fine with the reimbursement process. The document looks good. Ms. Shutt explained this is the mixed-use project they were waiting for using the 9% Tax Credits, with 124 affordable multi-family rental units adjusted to the Boynton Beach Area Median income and having 8,500 square feet of neighborhood serving units, one bay will be for the Neighborhood Officer Program. The commercial piece will be built and funded by the CRA and Centennial will help them find tenants. Rent is fixed at $22 per square foot for 10 years, and the fifth year, there could be a 3% CPI increase. They hope additional funding will help preserve quality. The development agreement provided to the Board has the reimbursement funding. Centennial will buy the needed items and present the CRA with receipts and the CRA 7 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 will have a certain amount of time to reimburse them. It was already included in this fiscal year's budget consisting for about $225,000. Chair Grant asked if restaurant will fund the improvement regarding item 5G. Kathryn Rossmell, Esq., Lewis, Longman and Walker, stated the funding agreement will help build out the gray shell of the commercial spaces, but the individual tenant improvements are the tenants' responsibility. If there is any funding left over after prioritized expenses, the leftover funds can be used for certain tenant improvements and the CRA can help with the original very basic build out. Each tenant will be required to customize their space. They can also apply for commercial reimbursement grants and rent assistance as well. Attorney Duhy suggested the following motion to approve the Development Agreement as published in the agenda with the following amendments: the 4t" whereas clause, changing the definition section of eligible expenses to add some items; renumbering paragraph 2H adding a definition of secondary eligible expenses; amending section 4A; amending:5 ,�;,amendjng section 6, regarding IjmltatiQn on use of GRA Funds; amending section`7 .A,:amending sectiori:8 to add a notice,line; amending section 9 regarding right of first refusal; amending section 13 regarding default; amending section 1PA regarding;general provisions, amending.section 1.5E,regarding severat�j�ty•. r160. ing $aOpn 15 � t`e ardin public record's, and sub�ec fia final I�gal neview Ms. Rogue had not reviewed the-last set of documents. :AtforneyRossmell explained the Quly charlgQ between 'the doc,umer is that are Wore-them,o`n the dais.wa;s,efter Ms: Rogue's email yesterday.'Th'e removed the Language di'scussjng it could be a.loan Other than that, it is identical to the cagy they received last week. It will be sujeat to final legal review. If Centennial's legal team makes any substantive changes, they will bring it back in February for final approval. Motion Vice Chair Hay moved to approve with the red marks as discussed by Counsel. Board Member Romelus seconded the motion and asked about the sequence of events. Ms. Shutt explained staff was directed to handle the matter via a reimbursement development agreement. Because of the tax implications, Centennial wanted to research that further. The loan would require them to front the money upfront and draw down the money. At the request of Centennial, they halted the discussion with the reimbursement agreement and Ms. Roque then contacted them indicating they reviewed the matter and do not need to move forward with a loan so it reverted back to its original provisions. The CRA does not have ARPA funds. The funds used would be CRA money. The $1.6M is in a TIF agreement. This agreement is for $2M for the commercial mixed-use building and another $433K in an agreement coming up in an agenda item which was leftover funds from Cherry Hill item because Centennial now is shovel ready Chair Grant supported the item. 8 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 Vote The motion passed unanimously. B. Discussion and Consideration of a Tax Increment Revenue Finance Agreement between the CRA and Centennial Management Corporation for the MLK Jr. Boulevard Corridor Mixed-Use Project (Heard out or Order) Ms. Shutt presented the item, which was for $1.6M in TIF funding for the project to be reimbursed for the term of 15 years. It will be at 100% to help fund the cost of the overages due to the pandemic. She explained this item will return to the Board in February. Attorney Duhy advised this item is just an update. The negotiations are ongoing, but they wanted to secure the Purchase and Development agreements and agreement on the terms of those two agreements prior to finalizing this agreement. The draft before the Board is not final and this item would come back to the Board in February. Chair Grant liked the washer and dryers in each individual unit. It was part of the consideration of the TIF. It was 100% at 15 years, not to exceed $1.6M or 15 years. There was consensus to move forward. C. Discussion and Consideration of a Second Development Agreement between the CRA and Centennial Management Corporation for the MLK Jr. Boulevard Corridor Mixed Use Project Ms. Shutt presented the item and explained the terms were presented to the Board last month. Staff is continuing discussions on this item with Centennial with the same recommendation the Board approved. Any changes would come back to the Board in February. The agreement would be on a reimbursement basis. Attorney Duhy explained there was only one item legal counsel for the CRA and legal counsel for Centennial differed on, which was on page 5, paragraph 29, where it says the agent is personally responsible. Attorney Rossmell explained this language is typically contained in CRA agreements, usually when a corporation is largely controlled by a single person so the person who signs the agreement and the company are jointly and severally liable for ensuring the agreement is effectuated. It is up to the Board to decide to include it in the agreement. Wells Landing LLC is the entity that owns the land. The agent is not technically the LLC. Attorney Rossmell explained the agreement is set up to be signed by Mr. Swezy who would be the agent authorized to sign and it is specific to the signatories to the agreement that would be the agent bound by this clause. After brief discussion, Chair Grant did not agree with the personal guarantee. Ms. Roque noted they are the equity provider putting up the funds. Board Member Romelus felt if someone is signing, they should be liable for things occurring after the document is signed. Attorney Duhy explained if there is a corporation and someone signs for the corporation, the party that was contracted by the corporation is the party that is liable. If the corporation goes away, the CRA cannot pursue the 9 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 corporation's principals. In situations like this with the entity be a single person, it is not uncommon for them to personally guarantee it, or remain liable if the corporation goes away. It is at the Board's discretion if the CRA wants the ability to pursue damages or enforcement through the agreement against him personally as opposed to just Well's Landing. Attorney Duhy commented they do not do this with other corporations. They put it in there when there is a single person operating a corporate identity, so the Board would have a means of enforcement. Board Member Romelus asked if the CRA is protected. Attorney Duhy differed to the reverter in terms of getting a completed project, but if other action is needed in a worst-case scenario, the CRA cannot reach behind the corporation to the individuals unless it is expressly stated in the contract. Chair Grant thought a single member LLC does not provide protection. Attorney Duhy stated it is a corporate entity with managers and officers. A corporate entity can be an LLC. Chair Grant noted anyone can be an agent. It does not have to be the owner of the LLC. Attorney Duhy asked if the CRA wants the only person to enforce the agreement to be the LLC or the principal. Attorney Rossmell explained this agreement can be assigned and consent is not to be unreasonably withheld. They are relying mostly on a corporate format as a protection, so the language is intended as a protection and would address that. There are a variety of scenarios that could occur which is why they included it in a corporate structure. Board Member Katz supported keeping the language there if it provides additional protection. Chair Grant asked if they could get a personal guarantee. Ms. Roque did not know if Mr. Swezy was comfortable with a personal guarantee. They are the equity provider of about $17M and have a lot of skin in the game. When they do a lot of projects, Mr. Swezy usually does not sign personally. Chair Grant asked if there were any additional sureties that Wells Landings LLC is able to revive for this $433K. Attorney Duhy explained they do not have to formally approve any of the terms. They can work them out and bring them back next month with the TIF. Legal was just bringing up additional protections besides the LLC for the $433K. Ms. Roque stated they would work it out and discuss it next month. Motion Board Member Katz moved to table to the next meeting. Vice Chair Hay seconded the motion. The motion passed unanimously. Board Member Katz asked how much the combined total state funding for the two projects was and learned it was $20M for Ocean Breeze East and $34M for Wells Landing. Board Member Katz noted it was a substantial sum and this was millions in funding from the State Centennial obtained which made the projects possible. He was ecstatic they got the 9% tax credits twice in a row. Ms. Roque announced they obtained their permits for clearing. She will apprise the Board when they get final permits so they can have a ground-breaking ceremony. 10 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 D. Discussion and Consideration of a Purchase and Development Agreement for the Cottage District Infill Housing Redevelopment Project with Azur Equities, LLC (TABLED 12114121) Motion Vice Chair Hay moved to remove from the table. Board Member Katz seconded the motion. The motion passed unanimously. Chair Grant read a written public comment statement from Pastor Dames, Boynton Beach Coalition, indicating the Coalition is opposed to the Cottage District stating it needs to be built like any other development in Boynton Beach. He commented the Boynton Beach CDC and Randolph Construction should be a part of the development that comes to the HOB. Ms. Shutt explained the RFP was issued last year. Three developers were shortlisted and Azur was third. The Board authorized to staff to negotiate with them in May. Ms. Shutt asked Mr. Gotsman to provide images so the Board could see their completed work. The projects were mostly in Ft. Lauderdale. Projects the Board previously presented and had conducted site visits were projects listed in his proposal as examples of other projects in a CRA. Staff worked hard and diligently with Mr. Gotsman and Azur to develop the protections they have in the agreement. There are certain steps in a development to go through to have a successful development. One thing that was a concern to staff in August was for the ability of the developer, because of the experience he presented in his proposal, was the developments were predominantly mixed-uses and rentals. The reason why they were not initially selected was the single- family affordable housing component. They included language they can tighten to address comments that were raised, but there is still the ability of Mr. Gotsman to confirm to the Board about reassurance of the timeliness of completion and he can do this with the team he has. Staff offered the Board other options such as issuing another RFP, or the CRA do the project on their own with their own consultants, issue another invitation to bid so firms such as for Mr. Randolph's can apply and submit proposals, or entertain other letters of intent. Staff can review the terms of the development agreement to ensure the Board's and public's concerns are protected. Chair Grant appreciated the photos and wished they could have the photos earlier so it could be included in the CRA backup. Mr. Gotsman commented there was something more troublesome to him than being awarded or not awarded the project, which was a gestapo style prosecution, which has been occurring since the last meeting and since a company was awarded a project. Attacking a project is one thing, but attacking a company and its values is not acceptable. On December 14'", they funded nearly a million dollars in the Boynton Beach Village LLC and they were ready to start working. They have been working from the beginning and everything that was wanted and the community wanted was worked on. The development agreement did not start yesterday and they have been back and forth with the Board. A month ago, people got involved 11 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 and now they have a smear campaign, which he did not condone in any way and he commented it was not the way to do business. He advised he will gladly answer any questions. They developed 100s of millions of houses and building 40 houses was doable. He thought it was more than strange. Chair Grant noted Azur indicated their local partners were Randolph Construction and the Boynton Beach CDC and they were both still involved in the project. He thought the project was not just affordable housing, but attainable housing. There is a range of products from $249 to $400K. Chair Grant saw the prices of some old houses in the HOB going for more than that. Azur was still including the park. Azur first proposed a rental community, but was advised they wanted a path to ownership and the homes were to be for sale homes. People wanted garages so they added garages. They have changed the site plan several times and been jumping through hoops to keep the community and partners happy. He just got a letter of support from a Pompano HOA. Chair Grant commented there is affordable, attainable housing, with local partners and a park and they can move forward with it this month if the CRA desires. They gave away the Ocean Breeze East site and it never went through, but they never stopped giving the land to developers because they wanted a development built. Board Member Katz commented they have a right of first refusal in the current contract if they attempt to sell the land, but at the last meeting it was stated if things did not progress, they can buy the land back at cost and the cost of improvements put into the undeveloped property and it then belongs to the CRA again. Ms. Shutt explained paragraph 23.3 covers the right of first refusal regarding abandonment of more than six months and as written in that case, if the CRA executes their right of first refusal, they could buy it back for market plus improvement cost, which could be changed to say at the purchase price and payment. A second option is if Azur got an offer between the time of site plan approval and the time the last Certificate of Occupancy was issued, the CRA can buy it back at market value or change to purchase price and payment. Board Member Katz thought if he sells something for $10, that is the market rate for that product. He asked if the $10 was the market rate or the property appraisal cost. Attorney Duhy explained language would have to be changed. Board Member Katz wanted the land back for what they sold it for, not to give land for free. Mr. Gotsman stated they have not flipped any properties and had no problem as they are a community developer. Board Member Katz asked if Mr. Gotsman was open to the change Ms. Shutt stated. Mr. Gotsman responded he was. Ms. Shutt also noted the reverter is in paragraph 23.2 which states if the developer does not perform, the property reverts back to the CRA for the purchase price and cost of improvements made, and they would add for any other CRA incentives. The amendment would include said language. Attorney Duhy explained there are two options. The reverter shall require the property to be reconveyed to the seller by quit claim deed should the purchase default under the terms of the agreement. That is the timeline and development elements. In the event 12 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 the seller exercises the reverter, the seller shall reimburse the purchaser the purchase price of the property ($10) as set forth in this section 2 of the agreement in addition to verifiable costs incurred and paid by the purchaser from the effective date. Ms. Shutt wanted to add there, the CRA will pay anything above what they already paid in incentives under the agreement. There is a provision for $385K. If there is a default, the CRA will pays $10 and any amount above what they have given in incentives. Vice Chair Vice Chair Hay stated they gave the property for $10. If Mr. Gotsman repackaged the development, another developer offers him $50M for it, he returns to the CRA for right of first refusal, which they reject if Mr. Gotsman can sell the development for $50M and walk away free. The question with the right of first refusal is if it is for the same price meaning Mr. Gotsman received an offer for $1 M and the CRA would have to pay $1 M. Attorney Duhy explained as is currently written, it is at market price and the CRA would pay any amount above the $385K of incentives used for that improvement. Any additional infrastructure would be paid for plus the $10. The $385K is divided per portion of the property. Board Member Romelus asked how payment would be made incrementally, which Ms. Shutt explained in reference to paragraph 21. The first payment would be 50% paid out at the time of receiving the Land Development permit and the first Certificate of Occupancy, which she read. The last disbursement is after they get the final Certificate of Occupancy so it is done incrementally. Vice Chair Hay had problems with this development and it has nothing to do with Randolph Construction and the Boynton Beach Faith Based CDC. He thought there were many red flags. Building at $120 a square foot, Mr. Gotsman would keep the price of the home to $265K, but thought Mr. Gotsman would come back and ask for money. From the beginning when they ranked the company, it was not so good. The local hiring was good, but he was disappointed in their history of projects in Pompano and Deerfield. He noted the Board has options. He thought they could go to RFP and the CRA can do this project, which would allow them to lower the cost of the unit to under $265K. They could budget it for several years. The bank has programs for affordable housing and the CRA would not make a profit. He wants affordable housing in District II, but he felt uncomfortable moving it ahead. He asked Ms. Shutt to explain how this could work. Ms. Shutt explained if they build the project themselves, they would have to hire a consultant via RFP/RFQ or piggy back on a City contract for a design consultant. They already have $385K could be used for design fees. The CRA can budget for construction or get a loan against their property which can be done in the next fiscal year. The Board can also issue an invitation to bid and break it up so smaller contractors can participate or partner with the CDC or Habitat for Humanity. The key is resale. The CRA can keep its price low and do not need to have a profit. To keep the price point at $270K the Board is looking at $170 per square feet with an average of 1,500 square feet. If the cost escalates, they would have to find money and hire someone to conduct the income qualifications. The biggest thing is the development 13 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 costs, but they would have to pay for the design and cost of construction. Chair Grant thought there was more liability if the CRA built the homes. He also asked how much the infrastructure would cost. CRA staff was not doing the work, it would be a developer. Any service over $25K has to involve an RFP or use a City contract. Ms. Shutt explained it would be an RFQ which usually takes 90 days. The CRA could piggy back on a City contract for an architect. Ms. Shutt explained an architect was not needed for a single-family home although it would help, but for liability, the builder will have to hold a performance bond. There are timelines and ways in which they could meet current procedures and the development could be finished in three to four years. in a more controlled way. The price of the unit dictates how long it takes for the homes to be sold. Vice Chair Hay liked that it provided greater control and thought they should look into it. He would not support moving ahead. Board Member Romelus has been a proponent of the developer from the beginning. While the company was ranked third, she ranked him first, the price point met the needs of the community. They were already working with local contractors. Her comment to Vice Chair Hay and Ms. Shutt is they are not in the business of development. They hire people to do this. The issue has been very politicized, which she thought was intentional by other people with vested interests in developing the area. The CRA is not a developer. She did not want to hire consultants, develop floor plans as that has already been done. This developer has been working with the CRA for at least nine months. He spent upwards of a million dollars on things the CRA was just discussing. She questioned why they are wasting time, money and resources, thereby preventing residents of District II from receiving affordable housing. They just heard a resident say they cannot afford to live here or he has to move back to Kentucky. The reason the other two developers dropped out is they could not meet the price point the CRA wanted. The CRA had to go to the City to fix something the CRA wanted such as a park. Blaming the delays and time issue on Azur was unfair. She felt it was disappointing they got to this point and now they are at the finish line and saying no. It bothered her that they are letting pressure from outside people make them change their votes. They cannot go into this and say let's do this ourselves. They have wasted time and resources and made themselves look foolish in front of the development community by doing a complete turn-around. They will have a new Board in three months and they will have to pick up where this Board left off and build a new 40-unit development She had her reservations in terms of issues with the development agreement, but not the developer and the team. She expressed her disappointment and stated this is not the outcome they should have had in a year. Board Member Katz commented regardless of proceeding or not with Azur, they want to make a future decision for the site. He did not favor the CRA developing the site. In spite of comments for and against Azur recently, the timeline of apprehensiveness predates all that and nothing recently said motivated him one way or the other. He did not see things ironed out to his comfort level. He did not want to proceed and thought how the matter would be handled after that was up to the new Board. 14 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 Chair Grant commented he used to live a block away and going up and down 1St Street, he saw the youth playing on the vacant lots, and he said he would try his best to get the neighborhood youth a playground. They did not have the properties on NE 4th Avenue then, but do now as part of a project for single-family homes. He favored moving forward with Azur. Tory Orr, 106 NE 7th Avenue, stated the community lives in District II. He was not in favor of Azur and they would appreciate not making decisions for them. He noted Board Member Romelus does not live in District II and it is different when you live there. Attorney Duhy explained there are two issues. The first issue discussed was the right of first refusal would be to change it to repurchase it for the purchase price plus the cost of any improvements above the $300K. The reverter discussion is when it would come into effect. She pointed page 21 of the Agreement provides the ability of the purchaser to get a construction loan financed via commercial bank or similar lender intended to fund the construction and development of the improvements. In such an event, the seller enters into a subordination agreement satisfactory to such lender. That language would mean the right of reverter is secondary to a construction loan lien. She recommended the language be stricken and a subordination agreement would have to be brought back to the Board for approval rather than putting it up to the lender. She was uncomfortable agreeing to something without seeing the terms. Pascal Cohen, President and CEO, Azur Equities, 431 Bermuda Drive, Hallandale Beach, thanked the Board for the time they spent working with them on the project. He advised he is shocked at what he heard and they should continue working with the towns and cities. In his life, there a place where people blame others for things that were not done, but he would not make commentary. The building shown was developed by recognizing the best building. He would not comment on the burden when they were spending money and wasting time trying to get things done on the City and CRA levels. Today, the City of Pompano Beach is trying to give them more to develop because they are a community that tries to give back because they live here. He clarified what it means to give back as it is time to get your community living in your City. They do not care if they have to pay $2M for a site. They just bought a $25M site in Miami for City Center of Miami Gardens. Construction is not about dollars, it is about people. It is about people on their sites spending money to help the community to have decent homes, help educate families and their children better because they have better homes. They are throwing that in the fire. They are not talking about profit and money. They have been told to do what is best for the City and they have spent time for a year, spending time, money and plans. He thought the CRA can do their own work, and clean their shoes first. Clearly, the members on the Board have to make a decision, but it is his decision too. He advised he was not working for the City of Boynton Beach. He read the first article about an abandoned site in Davie. He advised they are working with Davie on the City Center and the article is fake. He advised it is a fake allegation and he questioned how they are to continue to work together. He announced it was not respectful. This is a serious job, with a serious commitment and dollars. He was 15 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 shocked. He explained maybe he made the right or wrong decision, but all his life with his crew and team, he tells them to try to live a life you want and help people to have a better life. After hearing what he heard, he is happy. Azur is out. They have never thought about flipping a property. He implored all to be serious. Making money was not what this project was about, it was for the people and community. The development is serious and about people. He commented he was not going on trial here. He thought plenty of developers would come to the City and they did not need one more project. Their plate is full, and they only need one more project that serves the community. He wished the Board luck. He explained it will be tough for his team to withdraw, but it was the first time he was doing so. He will have a special meeting of the group with all the members. He was sorry for Mr. Gotsman and Ms. Shutt and the Board members, but this was not the way he works. When he helps people in Pompano Beach, he does not ask for anything back, just respect, and tonight had a very disrespectful approach. He thanked the Board for their support and reiterated the project is done. Attorney Duhy recommended either approving the development agreement with amendments or terminate negotiations with Azur Development and terminate the RFP, Chair Grant noted the developer terminated the agreement first and questioned if the Board still needed to make the motion and learned they did. Motion Board Member Katz moved to terminate negotiations with the developer. Vice Chair Hay seconded the motion. The motion passed 3-2 (Chair Grant and Board Member Romelus dissenting.) E. Discussion and Consideration of a Purchase and Development Agreement with 211 E Ocean LLC for CRA-Owned Property Located at 211 E. Ocean Avenue Ms. Shutt presented the item and advised Mr. Barber is working on getting the Board the needed information. Board Member Katz asked if there was any additional information about shipping containers. Ms. Shutt responded the last meeting with Mr. Barber and staff was very positive based on the site and historical aspects. They are in favor as long as Code requirements are met. She did not think there would be any objections, which she could get in writing from the Development Department and any other items that may be detrimental to the concept. Board Member Katz commented he appreciated a real time update. He also noted there was a request to remove the historic designation and advised he felt it was not historic. Even the local designation was created primarily for the pursuit of funds for restoration and designation. In order to remove the historic designation, it would have to go to the City Commission and Board Member Katz requested they ask the City Commission to remove it. Ms. Shutt stated aesthetically it is not a big proposal to change. Board Member Romelus supported changing the designation. Currently, the outdoor dining room has to have an outdoor design and porch area and they need to restrict some of the new improvements 16 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 behind the building. The building would be restored, but needed to meet Code. Chair Grant did not want the Board want to remove the designation. Motion Board Member Katz moved to pursue removal of the historic designation. Board Member Romelus seconded the motion. Mike Rumpf, liaison to the Historic Resource Preservation Board, commented designation is not a stumbling block to development. Chair Grant commented if they remove the designation and sell it to someone else, they can change their mind and tear it down. Mr. Rumpf agreed. The review process has a recommendation from the Board. Vote The motion passed 4-1, (Chair Grant dissenting.) F. Discussion and Consideration of a Request from South Florida Marine to Amend the Purchase and Development Agreement Ms. Shutt presented the item. There is $50,800 to be used for job creation, amounting to 12 full-time or 24 part-time jobs or a combination thereof, Ms. Woods requested staff bring it up to the Board to draw some of the funds down. (Board Member Romelus left the dais at 8:05 p.m.) Ms. Shutt explained South Florida Marine is finding they are having a hard time hiring employees. Chair Grant would give another extension as COVID impacted businesses, but he did not think they should do so for private businesses. Mr. Woods has been on Linkedln, Facebook, and South Tech trying to recruit new employees to the dealership. They are a drug-free employer and some employees do not show up. Their employees are working over-time and it is difficult. They had previously received a one-year extension to November 2022. Board Member Katz was not opposed to granting an extension if it appears the next 10 months would not yield any new hires. He does not support deviating from the original use to create jobs and did not feel he needed to weigh in on it. He did not support the request at this time. There are specific things in the agreement they have to maintain. (Board Member Romelus returned to the dais at 8:19 p.m.) Chair Grant noted it was a reimbursement grant so as soon as they have someone working there for what the term states, they can apply for the money based on that information being given to the CRA. Ms. Shutt did not see in the current agreement the 17 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 maintenance of the job, which the Board can ask staff to correct. Chair Grant thought if South Florida Marine could retain an employee for 30 days, it could be used as a signing bonus. Board Member Katz felt as long as they create new positions, regardless of how they use the funds, that as long as they created the jobs, they were entitled to the funds. Discussion followed how long the employee have to be there for and what percentage of funding should be given and it was recommended for a full-time employee 50% be given after 30 days and after 90 days they get 100% of the funds, prorated per employee. This is for new positions and new employees. This item will be brought back to the Board next month. If the position is available, email it to the CRA (Board Member Katz left the dais at 8:17 p.m.) Attorney Duhy explained at that time, an amount would be provided. She will bring back language for the next meeting. Motion Board Member Romelus moved to change the agreement from at the end of the period (November 2022) that 50% employee reimbursement at 30 days and the full 100% after 90 days in Section 19.2.D. Vice Chair Hay seconded the motion. (Board Member Katz returned to the meeting at 8:18 p.m.) Vote The motion passed unanimously. This item will be placed on the Consent Agenda. G. Consideration of the Purchase of Green Acres Condominiums and 409 NE 1st Street Properties (TABLED 12/14/21) Ms. Shutt advised Mr. Fitzpatrick was supposed to bring back terms listen. If the information is not received, it will not be placed on the next agenda. Chair Grant noted 409 NE 1St Street is adjacent to the Cottage District. Board Member Katz thought the Board should prioritize the Ocean Avenue property. Motion Board Member Katz moved to remove from the table. Board Member Romelus seconded the motion. Chair Grant thought if they could get the land on 409 NE 1St Street property for $300K compared to the amount of land they purchased on NE 4th Avenue for over $250K they are buying the same acreage for 60% of the cost. If they want affordable housing in the HOB, this can help. It would allow the purchase they made for the single-family home, to have a much better value than leaving it to the whims of a developer because if 18 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 another developer buys it, then the $268K purchase the CRA has will have very little value. Chair Grant asked if the Board would entertain purchasing only the 409 property, and not 409 and Greenacres as a combined unit. It was not one of the listed items and they can communicate that to Mr. Fitzpatrick as Mr. Fitzpatrick offered to sell the 409 property for $300K. Board Member Romelus suggested negotiating and making a counter. She thought $300K was a fair offer. Chair Grant thought $350K was a fair offer because it is listed. The CRA does not pay broker fees, but increased the offer so the seller could pay the broker fees. Board Member Romelus was fine with that. Board Member Katz asked if Mr. Fitzpatrick can lock in the $2.67M or $2.65M with an escalator. If done together it would be $2.7M. The verbal agreement to the Board is not valid. They can redact the amount, but they would need to have it signed. Discussion ensued to offer $350K for 409 NE 1St Street and the price for the Greenacres property would be $2.5M subject to option purchase agreement negotiated by the parties. The offer letter will say the Board voted to approve the purchase of 409 at a cost of $350M immediately pursuant to a purchase and sale agreement to be agreed upon and an option agreement for purchase of the entirety of the Greenacres condominiums with representations for all owners of acceptance of the offer for $2.5M. The terms of which will be set forth in an option agreement to be approved by the Board. Motion Board Member Romelus so moved. Board Member Katz seconded the motion. The motion passed unanimously. H. Discussion of a Potential Lease Agreement with C Life C Food, Inc. for the CRA owned Property located at 401-407 E. Boynton Beach Boulevard Ms. Shutt advised staff sent the final agreement to Mr. Collins and are still awaiting the information from his investor so staff can vet it and be funded for the improvements for $100K. Staff has not heard from either party. There was agreement all the requested information should be received by January 21St by 5 p.m. for staff to review. It would also be conveyed that failure to do so would result in termination of negotiations. Motion Board Member Katz so moved. Board Member Romelus seconded the motion. The motion passed unanimously. 14. CRA Projects in Progress A. CRA Economic & Business Development Grant Program Update 19 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 Vicki Curfman, Administrative Assistant, stated December was a slow month. There were four new businesses that moved into the CRA District. There was one new approval this month for $25K to improve a commercial plaza property. The owners wanted to make outside improvements and address the HVAC. At the last meeting, the Board wanted to know what was outstanding from 2019. Ms. Nicklien had prepared a report that has that information. B. Social Media Update Renee Roberts, Social Media and Communication Specialist, advised social media was used to promote local businesses. She reviewed this month's posts as contained in the meeting materials. Examples of posts covering the HOB Village commencement and the Holiday Boat Parade were viewed. They were also broadcast via Facebook Live. C. Social Media Outreach Program 1st Quarterly Report (October - December 2021) There are 66 businesses in the Social Media Outreach Program (SMOP); 107 have registered since the beginning of the program; two new businesses registered this quarter; and 43 businesses were contacted between October and December. The SMOP provides one-on-one social media assistance. Images of businesses helped were viewed. The SMOP program helped with Centennial Management's Heart of Boynton Village job fair. Ms. Robert reported the program has continued to grow. The CRA Facebook page grew by 1 K followers between October and December. In the past year, it grew by over 1,500 followers and Twitter has over 1 OK impressions for the first quarter. Instagram reached over 14K followers in the first quarter and 23K users in the past year. Future projects are new social media strategies, continuing the Bon Appetit and the Boynton Beach Bucks programs, collaborating with the business promotions team for upcoming events, and coordinating with the Grants and Projects Manager to promote the grant program to prospective recipients. D. Neighborhood Officer Program 3rd Quarter Report Items D and E were heard together. Sergeant Henry Diehl explained this item covers over six months. The program held events such as Swim with a Cop at the Denson Pool and lots of activities over the summer including Kids, Cops and Cones at Boardwalk Ice Cream, Back to School events in the beginning of the fourth quarter and National Night Out. Crime statistics were also viewed. Chair Grant noted a lot of attention has been paid to off highway vehicles. He asked if the Neighborhood Officer Program (NOP) has done anything to address this and learned they have not done anything specifically, but they can provide education and see if they can curb the behavior by educate the public. Chair Grant wanted to ensure information about the law is provided. Anyone under 16 years old can have under 14 cc dirt bike as long as it is not on a public road. He noted electric scooters can go up to 20 mph and be considered street legal as long as they go under 20 miles per hour. E-bikes can be used for transportation. No one under 16 20 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 should be on an ATV in general. Sergeant Diehl would have to research the age limits with ATVs as there are age limits for motorcycles by cc. He hoped they could create a program to teach what is safe and legal on the roads. Sergeant Diehl agreed to contact other cities about the matter. E. Neighborhood Officer Program 4th Quarter Report Sergeant Diehl stated the new software does not provide maps, only the chronological order of crime stats. They are working on getting maps in the future. F. Update on 115 N. Federal Hwy Infill Mixed Use Redevelopment Project Negotiations with Affiliated Development, LLC Mr. Burns had submitted a status regarding the assignment of the Boardwalk Ice Cream property. He is working with Hyperion and is willing to explore certain things, but he wanted to ensure the CRA is still working for a positive outcome so they can get the terms to the Board in the next 45 days or so. Chair Grant noted they are being asked to incorporate basic language to allow Affiliated some flexibility. He thought there should be no ties to any sort of TIF agreement with Hyperion for the transfer of the property and they should try to make the transfer simple and easy to keep in-line with their current time frames. There were no objections. Ms. Shutt explained they met with Affiliated before the holidays and then staff learned about the assignment. Staff wants to schedule a meeting after the MLK holiday to review the agreements. There will be two agreements with the City; one of which is for the garage or the lease back of the spaces and there will be two with the CRA; one being a purchase and sale agreement and the second TIF agreement. Attorney Duhy explained they were titled development and TIF agreements, but they are term sheets that will turn into an agreement. Chair Grant stated the big question is the garage as they have to work out a deal with the City. They will finance and build the garage for what they need and the 150 spaces for the public and then sell the garage back to the City for $10M. They were also negotiating the 118 units with 50% of the 236 units preserved in perpetuity for affordable housing. Those are the main terms and the others will have the standard development. Board Member Katz asked if they can add language that pursuant to comments by Kim Kelly and others, that the phases or however they decide to build, needs to incorporate the expeditious building and outfitting of the new Hurricane Alley to minimize the associated cost for the move from Hurricane Alley One to Hurricane Alley Two, and so it does not become a $300K liability for the CRA. Ms. Shutt explained as.part of the purchase and development agreement, the property was purchased by the CRA for $900K. They are hoping, as they are giving the land to Affiliated for the development, that it is counted in there. There has to be some equitable solution and timing to ensure he will work with Ms. Kelly to relocate. She believed it would be asked to be considered earlier on because the layout of the site allows him to work on the existing building and retrofit it to a restaurant use. She would 21 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 ensure it is incorporated into the development timeline, which minimizes additional costs to the CRA. G. Project Update for the Boynton Beach Boulevard Complete Street Project Tim Tack, Assistant Director, stated the project is between 4th Street and US 1 and it will have a 15-foot, shared-use path to a nine-foot sidewalk on the northside. There will be the addition of pedestrian lighting and the installation of one midblock crossing. Enhanced connectivity to the Intracoastal Waterway (ICW) and Marina is proposed by having shared-lane markings from US 1 to the ICW. On November 30th, 30% complete design plans were submitted to the City and CRA for review and comments are being sent back. The Board was able to get an additional two feet of sidewalk over the 1-95 Interchange. The project by Galaxy and Captain Frank's Seafood will have a bike lane and go from nine feet on the north and 15 feet on the south to eight feet. The original design the State wanted was six feet, but Chair Grant explained they wanted non- recreational bicyclists to have a separate path to ride their bikes on the road where cars are turning on and off the highway. After the interchange along Boynton Beach Boulevard it will narrow to six feet of sidewalk and the bike lane with two buffered feet. It was noted the Department of Transportation no longer installs landscaping as part of their road work, so after this project is complete, they will go forward with landscape improvements. The reason why is they do not want the roadway contractor to be responsible for the survival of the landscaping that is installed. It will be handled as a separate project and the CRA will have to fund it through a separate mechanism. Chair Grant noted the Buttonwoods will be removed and he hoped they would have better canopy trees that will not lift the sidewalk. The CRA has $500K and they will need, according to the ILA with the City, another $500K to total $1 M, but based on Mr. Tack's experience with this project, which was approved with 2018 dollars, that by 2024, they are looking at another 20% to 30% of the cost. The DOT typically wants the funds upfront from the City, so they would need to budget for it in fiscal year 2023 and not wait until fiscal year 2023/2024. They will be asking the Board to budget $250K in the next budget year. H. Project Update for the East Boynton Beach Boulevard Extension Streetscape and Parking Improvement Project Mr. Tack presented the item and explained the project involves improving existing pedestrian areas, streetlighting, landscaping and parking on Boynton Beach Boulevard east of Federal Highway. The advertisement for bid was delayed to the spring of 2022 due to the condition of the retaining wall along the roundabout perimeter and a structural evaluation is needed. Gary Dunmyer, City Engineer, explained the roundabout is not needed in its current capacity and it will be redesigned and converted to diagonal parking. They will remove the sidewalk, insert a curb and remove the middle island which will provide 19 additional spaces. Chair Grant commented the City could install meters or anything else as the Marina parking garage already charges $5. Board Member Katz asked if the CRA has parking spaces on the top of the parking garage. 22 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 Mr. Dunmyer stated there is parking there. Currently, the signs say two-hour parking. The garage is getting $5 per space and makes revenue for their parking authority. Marina Village has unused parking spaces at the top of the garage. The existing mangroves at the park will have to be removed and the CRA is trying to negotiate with the church for a land swap so they will not have to remove and demolish the existing boardwalk. The Boynton Beach Boulevard extension project was designed to create more parking and beautify Pete's Pond. There was also a forced main that burst and they are in the process of replacing. I. Project Update for Improvements to the Sara Sims Park Amphitheater Mr. Tack explained the CRA approved $150K to make improvements to the above in response to the community's concern, which includes landscaping, stage, sound, accessibility and electrical improvements. The improvements were completed in December 2021 and they are being closed out with minor adjustments. The improvements are 100% complete, they just have to remove the sign. Vice Chair Hay met with Glenn Weiss, Public Art Manager, who showed him how the panels at the amphitheater will work. One side will be solid and the other side abstract with could rotate, but it takes a special technique to rotate. His recommendation is to come through the City if they want to flip those panels. He was happy with the way it turned out. He noted there are also five outlets on the stage and conduits, if they want to expand. He praised staff. The canvass on the top of the amphitheater would also be removed before any storm. 15. Public Hearing 16. Old Business A. Discussion and Consideration of a Development Agreement between the CRA and Centennial Management Corporation for the Commercial Component of the MLK Jr. Boulevard Corridor Mixed Use Housing Project This item was previously addressed. B. Discussion and Consideration of a Tax Increment Revenue Finance Agreement between the CRA and Centennial Management Corporation for the MLK Jr. Boulevard Corridor Mixed Use Project This item was previously addressed. Ms. Shutt presented the item. This item will return to the Board in February. Chair liked the washer and dryers in the individual units. Tara if there is direction, provide it now. It is 100% for 15% could be 10 years max. up to a mix of 15 years. Consensus to move forward. 23 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 C. Discussion and Consideration of a Second Development Agreement between the CRA and Centennial Management Corporation for the MLK Jr. Boulevard Corridor Mixed Use Project This item was previously addressed. D. Discussion and Consideration of a Purchase and Development Agreement for the Cottage District Infill Housing Redevelopment Project with Azur Equities, LLC (TABLED 12/14/21) This item was previously addressed. E. Discussion and Consideration of a Purchase and Development Agreement with 211 E Ocean LLC for CRA-Owned Property Located at 211 E. Ocean Avenue This item was previously addressed. F. Discussion and Consideration of a Request from South Florida Marine to Amend the Purchase and Development Agreement This item was previously addressed. G. Consideration of the Purchase of Green Acres Condominiums and 409 NE 1st Street Properties (TABLED 12/14/21) This item was previously addressed. H. Discussion of a Potential Lease Agreement with C Life C Food, Inc. for the CRA-owned Property located at 401-407 E. Boynton Beach Boulevard This item was previously discussed. I. Discussion and Consideration of a One-Year Extension of Time to Begin Construction on the Bride of Christ Daycare Center at NE 10th Avenue (TABLED 11/09/21) This item was previously discussed. 17. New Business A. Discussion of 114 & 222 N. Federal Highway Property REVISED Ms. Shutt advised they got three letters requesting a TIF agreement. One was related to the 115 site and two for the 222 N Federal Highway site. Chair Grant understood 24 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 Hyperion wanted to understand what the Board was looking for in exchange for future TIF funds. Bonnie Miskel, Esq., representing Hyperion explained Hyperion closed on the 114 N. and 222 N. Federal Highway properties and they want to come back with a site plan, but wanted to discuss some elements and looked to the Board to give them direction. They hoped to return with additional information in time to appear on the next agenda for some form of TIF agreement. They also want to explore developing higher residential densities. There is a site plan associated with the property, but it is not the same site plan that was originally presented and approved. Chair Grant stated the CRA is willing to help fund commercial development in the CRA and he would consider helping fund anything above the minimum and the aspect of subsidized housing if it is under 140% via TIF and for parking spaces. Hyperion would come forward with proposed terms. Board Member Penserga spoke with Attorney Miskel earlier about the matter. At the next meeting they are going to come in with minimum in addition for some of the terms and their analysis, they will have a minimum square footage of non-residential, with sufficient information to make an informed decision. Hyperion will cooperate and has spoken with Affiliated. Board Member Katz agreed with Board Member Penserga, but suggested giving consensus so CRA staff can start moving it forward. They can provide the information quickly. It should be received by the 28th, but then they cannot make comments. If comments are wanted, they must be submitted by January 21St B. 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 Ms. Shutt presented the item. The tenants were living there rent free and their lease will expire January 23rd. Chair Grant requested giving an extension to February9th and if they want to bring a new 30-day lease or extend for $1 K per month for a two-bedroom, two bath unit they could. They would need to vacate by the end of February to get the Solid Waste Authority (SWA) grant. Attorney Jacobson was online and thanked the Board and staff. His clients got a house and closed on November 30th, but the house they found has tenants living there and they need to stay till May per the lease. They need the CRA's help for four more months. They are working with the tenants to get out of the house earlier, but the tenant flip flops. The new owners have four children and the husband is a truck driver. Chair Grant commented the SWA Grant has to be used by October 1St so the extra three months does not put it out of the time frame. Ms. Shutt advised they can work on it, but they cannot obtain the demolition permit until all utilities are off and an asbestos test is done. The CRA will demolish two buildings at the same time so they can get a better price. The other building is vacant. When they do the bids, they can schedule it. 25 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 The timeline associated with the bids is two weeks. Then they have to get permits. Demolition permits run a month or two to obtain. They can extend the lease to the next Board meeting so staff can get further information. The end date is January 28th, but the Board can impose a new end date if desired and be brought back to the next meeting for an update. Board Member Romelus asked how long it would take to demolish a building if they started the process in March or April to move out in May. Ms. Shutt explained it typically takes four weeks, it is usually a matter of cost and trying to bundle the properties separately. It may be beneficial to demolish one building and then stagger the rest of the demolitions. It would be cut pretty close, but it was doable. Motion. Board Member Romelus so moved for an extension of February 28th. Board Member Penserga seconded the motion. The motion passed unanimously. Board Member Katz inquired what the cost savings to bundle the demolitions was. Ms. Utterback agreed to forward the information tomorrow. Chair Grant recessed the meeting for a short break at 9:08 a.m. and reconvened the meeting at 9:17 p.m. C. Discussion and Consideration of a Lease Extension Request for Mr. Freddie Brinley located at 517 1/2 East Ocean Avenue, Apartment #5 This item was previously discussed. D. Discussion and Consideration of a Lease Extension Request for Mr. Scott Rudderow located at 517 1/2 E. Ocean Avenue, Apartment#3 This item was previously discussed. 18. Future Agenda Items A. Execution of the Second Amendment to the Purchase and Development Agreement to the Ocean Breeze East Project B. Palm Beach County Housing Authority Auction of the Cherry Hill Lots Update 26 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida January 10, 2022 19. Adjournment There being no further business to discussion, Vice Chair Vice Hay moved to adjourn the meeting. Board Member Penserga seconded the motion. The motion passed unanimously. The meeting was adjourned at 9:55 p.m. t Catherine Cherry Minutes Specialist 27