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LEGAL APPROVAL , . ! ~ )J~ AGENDA MEMORANDUM NO. 93-35C April 20, 1993 IX. LEGAL D.1 Discussion of new high school issue relevant to the Klatt property The attorney for the Klatt property has informed the City that the property owners and the School Board have reached an agreement on the price of the property for a new high school, but there were other items relative to the sale that needed further discussion with the City Commission. The two items are the~nactment of a transfer of development rights ordinance and ~equest to the County by the City, that the specific area be allowed to lower its level of service with regard to the traffic performance standards. The full explanation of each of these items is contained in the attached letter for City Commission discussion and further direction. (7 a I. ,--,ClCL u I VJC_____ Carrie Parker Assistant City Manager CP : j c Attachment RECE\VE.O ~~R '2. 9 \993 ...- --' .-"- SCHROEDER AND LARCHE. p, ^. AnO!tNiYS A.T U.... ONE 100. P\.AC[, SUITE 319. ^ mUM 22H QLAOES ROA.D BOCA RATON. J:'I.OIUOA 314 H - nil "'1<''''''1::1. "'. "';;KWtlle:1l, VI ......"'.ElOCE I...U':WO: . . ,...oa-H;,il. aA' tQ.~tO CU;1lfI:.U cc:~..." ~...-..;) '"!I "NDA'\"E V'1ll'Yf:. 80<.. "ATON ("071 HI -i))oo ~A.C> t:OVN'lV (J\nJ 421-0178 tl::LECOPIIEIl \40?\ 1<&' -079& April 16, 1993 TJIA TEL~eoPI2R (~07) 738-74~9 Edward Harmenin9, H~yor ci~y of Boynton Beach 100 X..t Boyn~on B.~ch Boulevard Boynton Soaoh, Florida 33.3~ Ref P~opo.od Sale ot ~att property at Conqress Avenue and old Boynton Beach Road to Palm Beach County Scheol Board Dear Mayor Harmening: As you know we represent Hr. and Hrs. Klatt, the owner. of the above-referenced property vhich consiats ot approximat.ly 105 aoree . '1'he Pa11l Beach County School Board bas suhmi tt.d & purohase otfer to my c11ent. indicatinq an interest in purcha.in~ approximately 60 acres for the proposed hiqh school subject, of oourse, to final approval by the Board. My clients have advised the School Board staff that they are interested in proceedinq with the sale ot t:ha property to the Sc::hool Soare and the tens and conditions of that proposed oontract tor sale are currently beinq neqotiated. My Clients recognize that many city residents w.n~ to have the new hlqh school located within t:he City and the various ben.tits that cou14 inure to the City a. a r.sult. They are also aware that there are other sites beinq considered by the School !Soara, at least one ot which 1. not looa~ed within the city limits, and that eaoh site naturally haa i~. own advan~a9.. and d1sadvantaqas. We are a110 aware of ~. conoer.n. that have been expressed by 80.. people to the eft.at tha~ locCltin9 t.he hiqn achool w1thin the City would r..ult in .lialnlltinq .iqn1tlcan~ acreaqe tro. the tax baa. at a ~i.. when the city i. greatly in need ot tax revenue.. 'raking the issue. reterred to above ineo c:onsi<1erat1on, .Y Client. are attempting to .t.ruct.ur. an arranqaent which would encourage tne SChool Board eo ..l.ot ~.1r property tor the new high school and thereby locate the .ohool within the City lill1tB Edward Hanaeninq, Mayor ci~y ot Boyn~on Beach April 1~, 1003 Page 2 and vhien would avoid any eroaion of the tax b... while .~ill p.r1Di~tinCJ .Y clien~. 'to receive a re.aoftal:lle return for 'their property. My olients have already taken 'the tirst steps in this r.9~rd by indioa~ing to the Sohool Board . willingn... to ..11 the prop.rey at the price offere4 by the Board, without negotiation, provided oertain .oditlc~tlon. to the propo.ed .ite plan are .~de and t.hat. '\;he School l3o~rd purchases sufficient: ~cre<<lqe to meet its needs for acee.., retention ~nd the like. We have indicated to the school Board l!ttaff, however, that. this acceptance et their offering price i. condit.ioned upon my Client. b.in~ Able to enter into CI suit.CLble arrcmg-e..nt with t.he city with. re.pect to tbe forty to forty-tive acre. of the property thAt will remain in my clients' ownership if the Scheol Soard transaction is closea. In this regard, my clients are reque8t1ng that the City Commi..ion approve the entry into an a9reement between my c11en~s and the City that would proviae tor tn. fOllowing: 1. The enactment ot a transter ot development r1qhts ordinance permitting the ~ran'f.r ot aevelopment r1ght. trom one parcel within the city to another and., it. the SChool Boar<1 purchases the school site trom .Y clients, approving the transfer ot the density con~emplated by the City" co.prehensive plan tor the property beinq 801d to the School BOard to the torty to forty-tive acres that will be retained by .Y Client.. As I .. sure you are aware, the concept of an ordinance pe~ittlng the transter of development rights is not new and it i. .y understanding that the County has had such an ordinance in .ftect tor some time. This density transfer aceo.plishes two iaportant objectives. First, it penlits the high school to be located within the City limits without any loss in tax bas. and second prOVides an appropriate incentive tor .Y cliente tn accept the School Board's initial ofter without turther negotiation reqarc11nq price. 2. As you know, it appears that siqniticant oftsita roadway improvuents will be necessary it the high school i. located on .y clients' property. Obv1ou.ly this has the effect of increasing the overall cost of the property to the SChool Edward Harmening, Mayor ci~y ot Boyn~on Beaoh April 16, 1993 Pa,. 3 Board. The.e oEf.i~e iDprov..on~. are ne~e.sitate4, at least in part, as a re.ul~ of the appli~Cltion o~ the County.. tra.etic performAnce .~andard. and u'tili...tion o~ the County'. C;:Qap101ter model in analyzinq tratfi~ in the area and ~eve~s ot ..rvice on the vArious attected roadway.. Whil. the roadways in thi. area are, aB a prac~ical a.t~er, by no ..ana anywhere near a gridlock situation, the application of the .tandards and current computer model apparently would dic~at. the nec..sity tor the additional roadway blprov....nt.. Pr.sWllably, even ~urth.r improve_ants would be required at t:he till. my client. .ought to have the remainder ot their property developed and it ..y even be the ca.. that the application of the c~put.r model and trartic standards would preclude that development and thu. turther inhJb1t ~he development of tax base within the City. When considering the traffic situation in the vicinity Of the Boynton Beach MAll, it i. important to recoqn1ze tha~ 'the County's comprehensive l.n~ use plan, in and or itselt, created traffic problems by virtue ot the county hav1nq made the affirmative decision to concentrate commercial aevelopment in the corridor alonq conqres8 Avenue, running trom WOOlbright Road at the south to beyond Hy'poluxo Road at tne north. Thus, havinq c;1ecided that, trOll a planninq 8tand.point, it was de.1rable to concentrate coma.re1al develop.ent in thi. area, the County created a concentration ot traffic in that area a8 a result. The city an<1 the property owners in the area in question now find themselves faced with slqn1ficant i_pediments to the development or addit10nal tax bas. because of this conscious decision on the part ot the county. Tne county in 1 ts traffic performance standard. ordinance recognizes that special circumstances may affect certain areas and therefore there 11 provided within the ordinance a mechanism by which a municipality has the riqht to request that a particular area be approved for lower levels of service t.~an would otherwise ~e penni tted l:ly the ordinance. The Ci ties ot Riviera Beach and West pal. Beach, among others, have already embarked upon ~~i. process and it would appear to be appropriate tor the City ot Boynton to do the same with respect to the commercial corridor in que.tion. Since the ordinance proviae. Edward Rars8nil'lg, Kayar city ot BoyntOl'l Beach April 16, 1993 Page 4 that tho applioation for thi. designation may only be made by municipaliti.., wo are requesting ~ha.t ehe City of Boynton Beach a9ro. to apply tor and pur.~c ~e obtainment of this designation. My olients are prepared to rois. the fun4s from affected property owner. to pay the oost. as.ociated wi~ preparation, tilinq and prooe.sing of the application so that this could be dene at no expense to the City other than the contribution or the t1118 or oertain .tatt member. whose assistance and input would be neoe.sory. While the obtoinment of this desiqnatlon may not result in eliminatin~ the need for all ort.ita roadway improve.ent. necessary in conjunction with the construction of the b1qh .Chool or the development ot undeveloped properties in the area, it would, undoubtedly, facilitate such c1evelop.en1:. The County CommiBsion has recognized tha~ the trattlc performance standards and computer .odel may very well unneces.arily be 1Japed1nq the development ot tax base and has appointed a special task toree fo. the purpose ot rev1ew1nq both the atandards and the -04el to see what might be done in order to alleviate the situation. I have spoken with the county Enq1n..r's ottice with respect to this matter an~ have been advised that while the task torce is lIovinq .torward with ita work, it is not expected that any conclusion will be reaChed -in the foreseeable future. The .i~le tact, however, that the county haa recoqn1zed the probl 811 , as evidencec1 by its creation of the task toree, may well be an indication or the favorable considerat1on that .ay be accorcSed the application we are sU9qestinq should be filed. Even it the school BOard were to determine not to proceed with the location ot the h1gh school upon .y clients' property, it would seem evidene that it is 1n the belt 1nterest of the city to .ake this apPlication to facilitate the timely development ot additional tax base in this commercial corridor. Atter you have had an opportunity to consider this letter We would welcome the chance to discu.. it with you and appropriate members of City staff and with the city co-.i..ion it..lf. It is our understanding that the School Board i. qoinq to cona1der the issue of the location for the new high school at its ...tinq on Kay S. We would request, therefore, that thi. requ..t be brought , , Edward Ha~.ning, Hayor ei~y of Boyn~on Boaah April 16, .l993 Page 5 before ~e ci~y comai..ion ~rior to Q~n finalize their ne~Qtiation. wi thus perait. t.he st.aff to pre.ent. School BoArd tor it. decision at th that ~t.. .0 ~a~ .Y olient. the SohoQl Board Dtatt and coaplet.ed proposal to tohe iae. MAS : bmlJ