Minutes 01-30-96 MINUTES OF THE SPECIAL CITY COMMISSION MEETING
HELD IN COMMISSION CHAMBERS, CITY HALL, BOYNTON BEACH, FLORIDA,
ON TUESDAY, JANUARY 30, 1996, AT 6:00 P.M.
Gerald "Jerry" Taylor, Mayor
M~tthew Bradley, Vice Mayor
Lynne Matson, Mayor Pro Tem
Shirley Jaskiewicz, Commissioner
Carrie Parker, City Manager
James Cherof, City Attorney
Sue Kruse, City Clerk
CALL TO ORDER
M~yor Taylor called the meeting to order at 6:05 p.m., and requested that the minutes reflect
Cdmmissioner Rosen's absence.
Proposed Resolution No. R96-09 Re: Ratification of City Manager's Selection for
Police Chief
Mayor Taylor read Proposed Resolution No. R96-09 in full.
~Vl~otion
M~yor Pro Tem Matson moved to approve Proposed Resolution No. R96-09. Vice Mayor
Bradley seconded the motion which carried 4-0.
M~yor Taylor offered his congratulations to Marshall Gage.
2. [ Presentation by T & J Equities, Inc. on Marina Proposal
Jack Simons, P~i~Jpal of T&J£qu~tJes,Jnc~, submRted a proposal which was depicted ~n the
cobceptual site plan on display. The plan covers the seven-acre, L-shaped parcel which
in ~:tudes 1½ acres of marina space. It includes a 150-room, U-shaped hotel, 50' in height,
[O
re
of
pc
th.
Tf
ated at the northeast corner of the property. There are 40,000 square feet of
~il/restaurant space in two configurations at two different locations. The primary portion
that 40,000 square feet (32,000 square feet) is on the south side of the canal on the eastern
rtion of the project. The remaining 8,000 square feet exists between the parking garage and
hotel.
ere will be approximately 320,000 square feet of condominium space in a U-shaped
nfiguration around the west end and south side of the canal. The height has been scaled
wn to nine stories, seven stories, five stories, three stories and into the two stories of the
ail and restaurant space. This was done as a result of the concerns expressed at the two
blic hearings. In addition, there will be a 60,000 square foot marina. The estimated
mber of slips is 50.
MINUTES
SPECIAL CITY COMMISSION MEETING
BOYNTON BEACH, FLORIDA
JANUARY 30, 1996
Currie and Associates is the architectural firm for the project, one of the three architects
sel[ected by the State for the bridge project. In addition, they will be doing the renovation of
the school. The intention is to have conceptual architectural integrity with all three projects.
Th[ere will be a parking garage of 1,000 spaces. The condominium project will have five
levels, and the hotel will have the different story levels mentioned previously. There will be
3010 residential units.
In response to Vice Mayor Bradley's question, Mr. Simons explained that the condo units will
be broken down nto blocks. On the north and south sides of the canal, the first block is nine
stbries. The second block is seven stories, then five stories, three stories and two stories.
M~yor Taylor explained that the purpose of this meeting was for Mr. Simons to present his
concept and the Commission to bring up any concerns or present questions. If the
Cc~mmission agrees with the concept, the City will be authorized to enter into negotiations to
re~olve any differences between the proposal and what the City wants.
MAyor Taylor asked Mr. Simons to explain the theory behind the stepping-stone concept
proposed for the condo units.
Bqb Cura']e said this is a sca[e-giving device to make the project look smaller. This concept
al~o provides better views for the residents of the condos, and makes it a more attractive and
interesting architectural design. Mr. Simons added that it is not possible to get the same kind
oflmass on the construction site that they were able to accomplish with this configuration.
M~yor Pro Tem Matson asked for clarification of the size of the retail shops which are
proposed. Mr. Simons assured her that the shops will not be 8' x 8' or 8' x 10'. This
configuration was dr,awn for depths of 45', 50' and 60'. These depths usually allow a
minimum width of 20 which would result n approx mately 900 square feet for the smallest
sh~p. He is not certain whether the largest shop will be 1,200 square feet, or a multiple of
th(~t figure.
MAyor Pro Tem Matson questioned whether any proposals had been received for the
restaurant space. She pointed out that the C~ty ~s ~nterested ~n upscale restaurants. Mr. Simons
ha~ retained Beck & Associates, which is an internationally-known restaurant chain. They are
concentrating on the marketing area from Palm Beach to Fort Lauderdale. There are a number
of~chains and well-capitalized, successful, privately-owned restaurants and restauranteurs that
have been contacted. There are two primary considerations with respect to restaurants--
in
ress and egress, and noise and odors. Mr. Simons believes there will be approximately
,000 square feet of restaurant space, and that will be broken down into two 7,500 square
)t restaurants. He feels one of the restaurants will be a two-story facility.
MINUTES
SPECIAL CITY COMMISSION MEETING
BOYNTON BEACH, FLORIDA
JANUARY 30, 1996
Cdmmissioner Jaskiewicz asked if Mr. Simons could divulge the hotel he is negotiating with.
M6 Simons advised that he has contacted every major chain; however, he is not in any serious
negotiations with anyone at this time, and does not expect to negotiate seriously with anyone
uniil he is designated as the developer.
Suza~eJ~eck has been doing restaurant/real estate internationally for the past t~velve years.
Sh~ feels there is a great market on the Boynton Beach marina place. She has worked with
th~ Downtown Development Authority in West Palm Beach, and found that they have
problems with the demographics, as does Boynton Beach. The traffic counts on Federal
Highway at Ocean Avenue are Iow. In addition, the incomes are extremely Iow within the
th!ee to five-mile radius. Restaurants in Mizner Park are completely filled; however, the traffic
counts in Boca Raton on Federal Highway are approximately three times the traffic counts in
B~ynton Beach.
M~. Beck said she has restauranteurs interested in this project. She is unable to divulge their
n~
as
bc
pr
b~
H,
In
tr~
h(
Hi
sh
M
Si~
1,
W
pr
Vi
roes at this time. She pointed out, however, that a funky restaurant, which serves items such
conch fritters and burgers, would do extremely well. She does not believe loud and
isterous places would do well. Restaurants with the wooden, nautical motif and moderate
ced seafood restaurants would also do extremely well. Ms. Beck does a great deal of
siness with Crab House. The Worthside project in Boca was a "white elephant". Crab
}use came into the project, and is doing $4 million in business.
response to Commissioner Jaskiewicz' question, Ms. Beck explained that the Boca Raton
ffic counts on Federal Highway are their current figures. Mayor Taylor pointed out,
wever, that even before Mizner, there was a shopping center in Boca Raton on Federal
§hway. Their traffic counts were probably higher than ours even back then because of that
)pping center. Ms. Beck said Mizner professes to have 5,000 pedestrians walk through their
mplex per day.
~yor Taylor asked Mr. Simons if town houses are being considered for this project. Mr.
nons said the concept has not been firmed up yet, but these units are smaller in size (800,
)00 and 1,200 square feet). There are a number of views of the ocean and Intracoastal
~terway. The price points on those units could have a higher number of square feet. The
veloper is looking for a range from $135,000 to $200,000. This area will be for mature
)fessionals and empty nesters.
:e Mayor Bradley asked Mr. Simons to explain the access or flow from a public point of
~w in and around the condos. In Vice Mayor Bradley's opinion, it is critical that this project
tome a true destination. He would like to see families come to this project to shop and use
., restaurants, and then stroll the boardwalk along the waterway. In order to thrive, this area
~st be as pedestrian-friendly as possible.
MINUTES
SPECIAL CITY COMMISSION MEETING
BOYNTON BEACH, FLORIDA
JANUARY 30, 1996
Mr. Simons said this is a major concern to the developer, but he can only work with what he
has available. He has been charged with a number of responsibilities. The City wants a hotel,
re§taurants and retail shops. The City also wants 24-hour interaction through the site. There
is ~ major problem with respect to the traffic flow and distances. There is an area with only
90'. If the City vacates some of the right-of-way, a pedestrian walkway can be added.
However, they cannot facilitate the size and quality of retail space with 60' depths. Therefore,
they have concentrated the parking in a parking'garage. They have provided valet parking and
a l~hysical configuration so that pedestrians can walk along the water. The developer is
awaiting interaction with the City relative to priorities. Alternatives are available. If the hotel
w~s not a primary consideration, and the City wanted all of the retail on a north/south axis on
the west side of the project, the developer could come up with a conceptual design with a
str~etscape orientation. The parking would be above the retail and below the residential. This
co[~ceptual plan meets the City's charge, but it is not the only plan that will work on the site.
In [response to Mayor Pro Tem Matson's question, City Manager Parker advised that vacating
th~ City's right-of-way is still open and negotiable. City Manager Parker said it is necessary
to ilearn from the Commission how they feel about the mix which has been proposed. In
adFlition, is the hotel a priority, or should that square footage be switched to restaurant and
re,ail ?
M
hc
M
pf
pr
sp
at
re
th
~yor Pro Tem Matson is concerned that if the conceptual plan is approved, and a major
tel cannot be secured for the project, this will become just one more condo on the ocean.
· . Simons feels this is a valid concern. He has gone through a number of these projects in
ases. There are many ways to address the concern including the conditional use approval
)cess. Approval of the conceptual plan does nothing other than to allow him to go back and
~nd additional funds. The final site plan for any height variation requires another attempt
pproval. There are a number of other vehicles available to the City including a deed
;triction. Mr. Simons is concerned about the economic viability of the retail and hotel on
~ site at this time. He has always felt that if the City wants it, he can come up with a plan
to/make it work. However, the market will determine what is feasible and what will stand the
te~t of time.
Cc~mmissioner Jaskiewicz noted that this was a different view than Mr. Simons presented the
first time. At that time, a 10-story luxury hotel was proposed. That hotel has now been
redluced to a five-story building and doubts are expressed. Mr. Simons said he does not have
do~ubts about the height. He is concerned about the economic viability of the hotel. Mr.
Simons explained that he has put in additional time on the underwriting side of this project
wl~ich resulted in this concern.
Cc~mmissioner Jaskiewicz asked if the developer plans to build this project in stages, and
reqluested a time frame for the completion of the project. Mr. Simons said the time frame
4
MINUTES
SPECIAL CITY COMMISSION MEETING
BOYNTON BEACH, FLORIDA
JANUARY 30, 1996
continues to remain at three years from the time of designation as the developer. The
de~eloper has come up with a product mix for the entire site. If the City desires a hotel, and
it is not economically feasible, the developer can build in phases for that. A portion of the
property will have to be designated for that phasing. A finished product can be available in
three years. Final plans with details will be within approximately one year. The construction
will only take about 18 months.
Commissioner Jaskiewicz asked whether or not Mr. Simons has backers for the condos. Mr.
Simons responded that he has two different sets of backs; one for the hotel, and one for the
residential excluding the hotel. The backers on the residential side will be a joint venture
partner for the entire project and will be an equity partner for the restaurant and retail space
as well.
M~yor Taylor reminded Mr. Simons that we now have a 100' height limitation in this area.
Thee concept of the hotel was that it would be a magnet to bring people downtown and
provide traffic in t[~e area. He feels the hotel would be the primary desire of the Commission.
If i'~ can be shown to the Commission that this hotel would be vacant, then the Commission
mi[ght want to go in another direction. He would not be in favor of any kind of phased
project. He feels it must be built as one project. However, if it must be phased, the hotel and
restaurants must be developed first. He will not approve condos and hope that there will be
a ~staurant built one day. He is pleased with the projected price range of the condo units.
MAyor Taylor questioned whether all of the walkways on Ocean Avenue will be improved.
M!. Simons responded affirmatively.
M~yor Taylor acknowledged receipt of the back-up matenal th~s evening, but he had not had
a~opportunity to review the package. Because of his limited knowledge of the mix that is
proposed, he would like to get additional feedback. He has no major problems with what is
proposed, but he does have some questions he wants addressed. This proposal depicts the
direction the City Commission has always wanted, and he agrees that three years would be
th~ outside limit he would agree to.
Cqmmissioner Jaskiewicz also likes the proposed mix suggested by the developer.
ViLe Mayor Bradley pointed out that the commercial aspect is a key component to
re~itahzat~on. The retail is a key component. He is concerned with the discussion this
evening about the risks involved with the hotel and retail. Five years ago, no one would have
thought revitalization was possible in Delray Beach. However, when movement started,
things began to turn around. Vice Mayor Bradley feels the pedestrian-friendly part of this
pr(~ject is critical. He is anxious to see detailed plans that would describe how a family would
park their car, get out and be in awe of what they see. Whatever excites people and keeps
them coming back is what the City wants.
MINUTES
SPECIAL CITY COMMISSION MEETING
BOYNTON BEACH, FLORIDA
JANUARY 30, 1996
Bob Currie explained that what started the revitalization of Delray was Old School Square and
the streetscape. When that was accomplished, everyone had confidence and moved forward.
He agrees that a pedestrian-friendly atmosphere is critical. This type of atmosphere wilt be
present on the bridge. The old school is being renovated. The thing Delray Beach wants the
most is residential in the downtown, and it is the one component they have not yet added.
M~. Simons said this Commission has shown a great deal of vision and strength of character.
The time is short and he has always operated under the assumption that Boynton Beach could
nov put significant dollars into the project. He has structured a program which calls for City
paKicipation and tax dollars, but only based on the economic viability of the project. This
project does not cost the City anything out-of-pocket. If it is an economic success, part of the
increased tax revenues will go to a portion of the parking structure. The City is not affecting
itsibond rating for this concept. Mr. Simons takes pride in the projects that stand the test of
time. The best developers are the ones who best define the market; they do not create the
m~rket.
With regard to the style of the retail, Mr. Simons never had any intention of putting in a "ticky
tack" grouping of retail. A density of residential is necessary to support a portion of the retail
and a portion of the hotel. Even with that, there is no guarantee. This is a three-year
deve opment program. If the interest rates increase dramatically in a short period of time (nine
months), this project may not be available one year from now. This is the reason why Mr.
simons wants to move forward with something that meets the existing market conditions. He
understands the increased interest that will be generated by this project. He has done projects
like this before. He has spent substantial sums of money to date to get to this point. The City
hai set up a methodology for approval in steps. The City has control over this project to
determine what it will finally look like. Mr. Simons feels that if he has not proven that he is
co~)perative and honest, he will not be able to do so in the next 45 days. He recommended
th,~t the City check his references and resume. A decision needs to be made regarding
w§ether or not to go forward with this project. If he has not correctly interpreted the City's
charge with regard to this project, then he is awaiting comments. In order to be successful
wi~h this project, he must move forward quickly.
M~yor Pro Tem Matson explained that she has the same feelings about phasing as the Mayor.
H~r major concerns are that the City bought into the theory and promise of the hotel. Waiving
of ~fees may not be a physical contribution on the part of the City, but it is money we will not
be[ getting. She has a problem waiving fees if this is going to be strictly residential. She wants
the hotel and her approval of the project would hinge on it.
Furthermore, Mayor Pro Tem Matson questioned what the developer needs from the City in
order to get the remainder of the financial information we need for the Dunn & Bradstreet
ch~cks. Although she would vote to pass this conceptually, she is not comfortable about not
ha~ing the information on pending litigation and the knowledge of who the partners are.
MINUTES
SPECIAl CITY COMMISSION MEETING
BOYNTON BEACH, FLORIDA
JANUARY 30, 1996
Mi. Simons said his proposal addressed the City's charge. With regard to waiving the fees,
if ldhis project is not built, the fees will never come in. This site has proved that, on its own,
it Will not be developed because it has been available for an extended period of time. With
respect to his own litigation, he has addressed it in the back-up material. If additional
information is needed, he will respond. He feels there is sufficient information in the package
for Dunn & Bradstreet. Prior to giving the names of the partners, Mr. Simons must prove to
th~m that there is no possibility that they will be responsible for any costs associated with
clean up. In addition, he needs to know what plan he is presenting. Within 45 days of
receiving the designation as developer, he will bring back a site plan for the project. The City
COmmission will not have to vote on the site plan if they do not like the partners. This is a
rat~her substantial real estate project. Mr. Simons expects to spend between $800,000 and $1
mi[ilion on architect's and engineer's fees. Many of the specific questions can only be
an~swered by the work product.
In iresponse to Vice Mayor Bradley's question, City Manager Parker advised that the report on
the Clean up will be finalized next week. Mr. Simons clarified that a report on the scope of
th~ contamination will be finalized. A proposed feasibility or plan for remediation is
sornethmg to be addressed after County DERM approves the scope of contamination. The
re~ediation then goes forth. City Manager Parker said the assessment report will be
coimpleted in a week. DERM has assured us that they will turn this around as quickly as
pqssible. They anticipate that should not take more than two weeks, and the cost proposal
cap be done within 30 days. If DERM approves the assessment report, it is anticipated there
wiill be a very minor clean-up.
MI. Simons said that explanation is not good enough for him. He needs DERM's approval of
th~ remediation plan, and they must also sign off that the remediation plan has been
colmpleted. This is of critical importance. He feels that one of the significant reasons why
onily one proposal for this project was received had to do with the question of contamination.
C(
sa
hc
nc
M
th
CC
th
.mmissioner Jaskiewicz was of the opinion that the contract with the current owner has
'eguards so that he will assume the costs. City Manager Parker advised that this was correct;
wever, Mr. Simons is not comfortable with that contract. Mr. Simons added that there are
financial penalties for default in the contract.
~yor Taylor said it appears to us that this is not a major problem. At this point, we expect
the clean up should take a very short period of time. He understands Mr. Simons'
ncern, but does not believe it is going to be a major problem. The City is working to get
done.
M~yor Taylor further pointed out that if the City is able to build this project, it will be
in~:redible because no City money will be used. This project is key to redeveloping the
do~vntown. We have not risked one dollar, and we are setting the rules for the project. We
7
MINUTES
SPECIAL CITY COMMISSION MEETING
BOYNTON BEACH, FLORIDA
JANUARY 30, 1996
want mixed uses. Mayor Taylor realizes that the people with money do not buy dreams. They
want to know that the City is serious and will buy into the site plan. Mayor Taylor is very
serious about moving this proposal forward. He wants to see it happen within the parameters
of mixed use. He has no problem with investing the City's tax increment, and he feels this
will be an incredible accomplishment in the downtown. He will do everything he can to
make this happen.
Cc~mmissioner Jaskiewicz agreed with Mayor Taylor's remarks.
In [response to Vice Mayor Bradley's question, Mr. Simons stated that he is looking for the
designation as the developer. He has already received the City Manager's commitment to
work out the details. He plans to go into great detail on a number of specific items in a very
sh~rt period of time. He needs a commitment in order to secure the funding required by
M~rch 31.
Attorney Cherof advised that the process under the Statute requires a 30-day notice of the
COmmission's intent to designate Mr. Simons as the successful proposer for this project. This
coiuld be added to the agenda for the next Commission meeting, and it would run 30 days
frdm that date.
M~yor Taylor confirmed that negotiations can continue during that 30-day period.
Thiere was a consensus of the Commission that it is their intent to designate Mr. Simons,
rel~resenting T & J Equities, Inc., as the developer for this project, and to authorize the City to
enter into negotiatiOns.
Aqorney Cherof noted that there is a reference in the package which says the applicant is to
sul~mit sheets indicating what litigation, liens or claims there are. Attorney Cherof assumed
that since no sheets were attached, there are none. Mr. Simons confirmed that there is no
ne~ed to fill out a sheet since there are no liens, claims or litigation pending.
Vi~e Mayor Bradley would like the City Manager and Mayor to be part of the negotiating team
that will be interacting with Mr. Simons. They can then report back to the Commission.
Ci[y Manager Parker requested authorization to have outside counsel or other experts in terms
of leconom~c situations or legal assistance f she and the Cty Attorney feel that assistance ~s
necessary during the next 30 days of negotiations. All Commissioners were in favor of this
I ·
re(~ommendat~on. Mayor Pro Tem Matson would like to see Sam Goren involved in the
negotiations.
MINUTES
SPECIAL CITY COMMISSION MEETING
BOYNTON BEACH, FLORIDA
JANUARY 30, 1996
ADJ~UR ~ MENT
There being no further business to come before the City Commission, the meeting properly
adiourned at 7:10 p.m.
CITY OF BOYNTON BEACH
ATTEST:
Mayor
Vice Mayor
~ayo0bro Tem
CiI¢Clerk
Commissione¢ ~c)-~7,zz,z-~,~
Secretary
(T~vo Tapes)
S:\CC~WP~MIN UTES\COMM\013096.WPD
Commissioner