Minutes 07-18-16 Spl Mtg MINUTES OF THE CITY COMMISSION SPECIAL MEETING
HELD ON MONDAY, JULY 18, 2016, AT 1:00 P.M. IN THE
LIBRARY PROGRAM ROOM, BOYNTON BEACH CITY LIBRARY
208 S. SEACREST BOULEVARD, BOYNTON BEACH, FLORIDA
PRESENT:
Steven Grant, Mayor Lori LaVerriere, City Manager
Mack McCray, Vice Mayor James Cherof, City Attorney
Christina Romelus, Commissioner Judith A. Pyle, Interim City Clerk
Justin Katz, Commissioner
Joe Casello, Commissioner
Mayor Grant called the meeting to order at 1:03 p.m.
Interim City Clerk Pyle called the roll. A quorum was present.
Colin Groff, Assistant City Manager - Public Services /Utilities Director, explained the
workshop was a request to move forward with the Town Square Request for
Qualifications (RFQ). A presentation will cover where the City was, what they have
done in the past, obstacles they are aware of, and define an RFQ and Public /Private
Partnership (P3). Mr. Groff will outline what is needed and issues staff needs
Commission consensus on. At the end they would make a recommendation which could
be approved, rejected or modified.
Mr. Groff explained over the last few years, staff held public design workshops with the
public to gain input for the Town Square and it was incorporated into conceptual ideas.
Staff also met with developers regarding unsolicited proposals to develop the area.
One proposal did not include the Old High School (OHS) in the Plan, which was
rejected based on the current direction of the Board. Another proposal would be
reviewed and a few weeks ago, the City Commission added the Town Square as a top
priority in the Strategic Plan.
Vice Mayor McCray asked how many proposals were received including the rejected
proposal and learned two were formally received and there was one informal proposal.
Since then, staff received conceptual ideas from development teams. Ms. LaVerriere
explained the first proposal received was just for the Old High School, from Jeff Harden
of Straticom. The community wanted to create an active lively center that maintained
some form of a Historic High School, including a City campus and staff would
incorporate community input in the proposal.
A P3 was an agreement between a public agency, and a private partnership. It is a
contractual agreement and it allows a private partner to work with the City on City
owned property to develop a mixed -use development while providing the services the
City needs. The partner could provide the capital to finance the government
Meeting Minutes
City Commission Special Meeting
Boynton Beach, Florida July 18, 2016
project. One way development could occur is they submit a proposal. If the proposal is
accepted, there is a process to follow to invite other developers in under the same
proposal. The other way is to issue a formal RFQ to address all the needs for the Town
Center and advertise the development, inviting teams to submit a formal proposal that
addresses the needs for the Town Center. Both are public private partnerships.
The City has been promoting the Town Square for over a year and there have been
challenges. One problem is development teams have concerns regarding their financial
and proprietary information being publically disclosed. Some waited for new rules to
allow for confidentiality, which are now in place. He explained once a contract is
signed, the team's finances are subject to disclosure. Some teams were concerned
about the OHS. Prior to the Strategic Plan, developers were not comfortable the City
could fund the project. Mr. Groff explained consensus was needed in this regard.
Other challenges were the adoption of the Consolidated CRA Plan, building height
issues, market requirements, and others.
The next step is to publish an RFQ. Florida Statute provides for the City to select a
team or consultant to build a project under a qualification -based process. The City
would advertise for private development teams who will submit their past projects, team
make -up, potential financial offerings and other information. The City may have five or
six teams respond to the RFQ and a selection team will shortlist the respondents down
to three. The three respondents will submit conceptual drawings, what they want to
build and the financial package to fund it. The selection team would then score the
responses and one team would be ranked first that will be brought to the City
Commission for approval. Staff would recommend a five person selection team to the
City Commission which would include City staff with expertise in the area and perhaps
two individuals with expertise with the financing of these types of projects. Mr. Groff
clarified the individuals with expertise could be included as part of citizen input.
Mr. Groff explained the RFQ would include conditions that are required, directions for
preparing the proposal, scoring methodology and ranking, the project requirements, and
any other criteria the City wants to include in the proposal. He thought the City could
bring in someone from the outside to help finalize the requirements. There may be
other project requirements such as roadway improvements. The idea is to have
flexibility so the team can provide a plan that meets their financial requirements. If a
plan is too specific, there is no creativity. He commented maximizing private uses
minimizes the City's investment because there are financing options that come from the
private development that helps finance the project. Developers would come in with their
money and understand the market. They have to put together a project that meets the
market and City needs.
The OHS RFQ requirements kept the school in its current location and rehab it to house
civic functions and only allow that option to be proposed. The second option was the
same as option 1 with alternatives. The City may want to keep the same facade and
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Meeting Minutes
City Commission Special Meeting
Boynton Beach, Florida July 18, 2016
footprint with a new building and /or recreate the historical portion of the school.
Commissioner Casello asked if the $100,000 grant would still apply. Mr. Groff
explained several developers feel if they can fix the roof it would stabilize the building
and be a better option to keep the OHS and the grant was a good tool to move the
project forward, even with the alternatives.
Mayor Grant asked if the building could only be used for a civic use or if it could have a
cafeteria. Mr. Groff responded the City would allow some commercial, but it would be
left to the developer. Some civic uses are good with additional commercial to support
the uses. Ms. LaVerriere commented the project would accommodate the Madsen, Art
and Civic Center uses, because those structures would be demolished. There was
consensus to use option two.
Mr. Groff asked about the Police and Fire stations attached to City Hall and commented
it is valuable land for private development. The City had planned to relocate the Police
Station to High Ridge Road. There is a study in place and it is about a $28 million
project. The City would still need to find a site for Fire Station No 1, and had considered
the Ocean Breeze East site for a combined Fire and Police Department Public Safety
Complex. Staff recommended including both sites in the RFQ. Vice Mayor McCray
noted there had been consideration of moving Sanitation out of District 11 and thought
they could put the fire station there. He thought if there was a hotel in the area, having
a fire station nearby would be good. Mr. Groff commented that was an option they could
include in the RFP. There was money in the five -year plan to do work at the Public
Works site and there may be some advantages to doing so.
Commissioner Casello thought it comes down to flexibility as being site specific could
offer roadblocks. Mayor Grant commented the total market value of City Hall is
$10,300,000. He supported getting the maximum value and favored Police and Fire at
Ocean Breeze East. He asked if the Police Station was located at High Ridge Road, if
there would be a substation in the Heart of Boynton. Mr. Groff explained every study he
read had the Police Department on High Ridge. There is a substation at Renaissance
Commons and an office on MLK Jr. Boulevard. Vice Mayor McCray thought Ocean
Breeze East should be considered and the property at High Ridge could be used for a
hotel. Commissioner Casello noted there was an inquiry about land for a potential hotel
on High Ridge Road and thought the property was more valuable as a commercial site.
Staff has tried everything for the Ocean Breeze East site, which was unsuccessful due
to the tax credits. The High Ridge site was earmarked for the Police Station and he
thought the City Commission should be flexible.
Commissioner Katz liked the Ocean Breeze East site, but was not locked into it. If the
City had to finance the Town Square /Police and Fire plans, the more value they could
get, the better. He thought the High Ridge site was very valuable, and anything in the
Town Square was valuable which the City would use to pay for the projects. He favored
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Meeting Minutes
City Commission Special Meeting
Boynton Beach, Florida July 18, 2016
Ocean Breeze East or the Public Works site. Vice Mayor McCray asked about the
value of the High Ridge and learned it was appraised for about $2.5 million.
Mr. Groff explained developers reviewed the High Ridge property. The Downtown is
about 16 acres and the other two sites were about 10 acres. Financially, developers
were excited about it because developing 26 acres gives them more flexibility with
financing options. Vice Mayor McCray asked where Public Works would be located and
Mr. Groff responded they would have to look at that. Public Works will not fit on the
East Wastewater Treatment Plant and there may be other opportunities. Ms. LaVerriere
explained Public Works is an eight or nine acre site. Mr. Livergood commented he
would be hesitant to include Public Works. Mr. Groff agreed, but commented the City
could always say they have another site and if the developer was interested, the City
could add it. Vice Mayor McCray favored adding it. There was consensus to include the
High Ridge Road, Ocean Breeze East and the Town Square sites and let the developer
come up with the best mix.
Mr. Groff explained the Town Square site was 16.5 acres which is city owned. The
development team will want to know if there is excess land to use to provide
development. Mr. Groff thought there was. The Schoolhouse Children's Museum needs
to stay at the Town Center boundary. He noted most of the conceptual plans he has
seen do not move the Museum. Vice Mayor McCray did not want the Museum moved.
Mr. Groff asked if there was consensus to locate City Hall away from Boynton Beach
Boulevard and in the Town Square. Commissioner Katz did not want City Hall on the
most valuable piece of land in the Town Square. Vice Mayor McCray also did not want
City Hall constructed in the same manner as the Library.
Mayor Grant asked if there was an option for City Hall to be somewhere else besides
the Town Square. Mr. Groff responded there were not many places left in the City to
develop. He recommended not including it, but it could be considered. Mayor Grant
favored locating City Hall on land less valuable than the Town Square.
Commissioner Casello asked if the City would consider a private developer, such as
Ocean One, approaching the City indicating they could construct a City Hall. Ms.
LaVerriere explained they considered doing so a few years ago at Renaissance
Commons. Mr. Groff commented if there was consensus to add it, staff would and the
City was seeing teams joining together. They could include the option and detail what is
needed and consider alternate locations within the City appropriate for a government
building with parking.
Commissioner Romelus thought City Hall should be in the 16 acre area, but not on a
prime corridor such as Boynton Beach Boulevard in order to allow higher income
development to go there. Ms. LaVerriere advised there was consensus to not list
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Meeting Minutes
City Commission Special Meeting
Boynton Beach, Florida July 18, 2016
alternatives offsite. Mayor Grant also learned staff had assessed the needs for a new
City Hall.
Mr. Groff noted the Civic, Art and Madsen Center functions would most likely be
included in the OHS. Commissioner Katz asked about the square footage of the
buildings that would be consolidated compared with the square footage of the OHS. Mr.
Groff explained the proposal he saw would still have 25% of the space left for other
uses. Once hiring someone, Phase I would be a space study.
Ms., LaVerriere summarized the Schoolhouse Children's Museum would not move, City
Hall would be elsewhere in the Downtown. The civic buildings would be removed.
Mayor Grant noted there is a butterfly garden by the Art Center and noted there are very
large trees. He asked if they would remain. Mr. Groff responded they will try to keep the
trees. Commissioner Romelus asked about excess land. Mr. Groff explained part of the
value of the land is land left over. There is value to it and it goes to pay down the value
of the public buildings. The question was if the Commission was willing to let it go to
pay down the land. Mr. Livergood clarified the excess land is for paved parking and a
developer may construct a garage or use it for another function.
Commissioner Katz asked if they will try to pin down the amount of land to remain open
for green space or a community area. Mr. Groff recommended they include having to
provide open space based on a space planning study. There are items that are desired
which could be included which came from prior studies and community input.
Commissioner Casello asked what would happen to the Schoolhouse Children's
Museum playground and learned it would depend on the submittal. The RFP could
require parkland and open space features. Developers would not propose anything
outrageous. They could include, create /expand green space, and event areas. They
want to preserve the tree canopies. The issue is if the open space is in the right place.
Mr. Groff commented they include open space and they could figure out how to include
everything in there.
Mayor Grant asked if they could specify they want more green space than already
exists throughout the project and not in one certain space. Mr. Groff responded they
could. He recommended defining what the space would be, i.e. not a parking lot.
Commissioner Casello explained the language could come after the proposal. The
Commission will pick a proposal or concept and then start designing the campus or go
to an RFQ. An RFQ could specify at least 15% additional open space for community
activities and letting a team move forward to develop a design, not build it. The RFQ
will include elements the team has to develop.
Mr. Groff asked if there was consensus to see what a team proposes and designs.
Commissioner Romelus thought developers knew what the City wanted and preferred to
see what they propose. The consensus was to give flexibility. Mayor Grant wanted to
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Meeting Minutes
City Commission Special Meeting
Boynton Beach, Florida July 18, 2016
include a definition of green space. Vice Mayor McCray understood about flexibility and
requested the developer improve access and circulation to the Library. Mr. Groff
believed there was consensus, at least what they have now, except about the green
space. Commissioner Katz commented whatever green space they assemble must
have real value for activity use as well. A community input plan was viewed which they
would use to develop ideas.
Mr. Groff explained the City would include 15,000 to 20,000 square feet of civic use, a
new 50,000 square foot City Hall, a public event lawn, the amphitheater, public
gathering spaces, an interactive water feature play area /kids museum and the
playground would be reworked. The entrance and gateway features at Ocean and
Seacrest, streetscape along Ocean Avenue and Seacrest Boulevard, including trees
and on- street parking would also be included. There were no questions or comments.
Mr. Groff reviewed the cost for the City to build a new City Hall, a new Police
Headquarters, a new Fire Station and new civic space could be up to $63 million.
Vice Mayor McCray spoke about the AmeriGas location and thought they could look at
the site for a Fire Station. Commissioner Casello asked if it was more economical to
combine Police and Fire in a Safety Complex and Mr. Groff thought it was.
Mayor Grant asked if the new City Hall could also house the CRA. Mr. Groff responded
a space study would have to be conducted and the CRA Board would have to make the
decision. Vice Mayor McCray pointed out customer service was contemplating using
the CRA Office.
Mr. Groff explained to move forward, the City would have to issue a $60 million bond
and it would make $58 million available. The bond would be a 25 -year bond. Interest
rates would be about 2.5% and the debt service is about $3.3 million. This would be a
.85 of a mil ad valorem tax increase. General obligation or revenue bonds would be
issued. Ms. LaVerriere explained they hoped with the P3, the City would not need that
much money.
Mr. Groff explained each team will bring a different financing option. The City could own
the land and lease it to the P3 team, like a reverse mortgage. If so, a $50 million
investment could be reduced. Private developers construct buildings less expensively
than the City could, and the annual lease payment could be reduced $2 million to $2.5
million per year. Private equity funding with lease back options would provide City
funding through annual appropriations. Funds that pay for the existing buildings would
be used. Revenue sources could include Tax Increment Financing, land leases, land
sales and energy savings contracts, which could save $500,000 a year. There are New
Market Tax Credits and historic preservation tax credits. Mr. Groff explained a private
partner will come in with a package explaining the financing will be so much per year
and the City can appropriate the funds through ad valorem. Commissioner Casello
thought it was possible the project could significantly lower the cost.
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Meeting Minutes
City Commission Special Meeting
Boynton Beach, Florida July 18, 2016
Staff wanted to release the RFQ which includes all the elements they discussed. plus
the changes to provide sites at the Town Center, High Ridge and Ocean Breeze East
and a few other alternative sites. The proposal must include a conceptual plan and
financing options for a new City Hall, new Police Station, new Fire Station and new civic
space. The primary conceptual plan must include the utilization of the Old High School,
but alternatives can be offered, and authorize the City Manager to issue the RFQ.
Motion
Commissioner Casello moved to go along with staff's recommendation in addition to the
items discussed as important to be added to the RFQ. Commissioner Romelus
seconded the motion.
Attorney Cherof explained the City Commission has to approve the document at the
City Commission meeting. Mr. Groff explained the final results will come back to the
City Commission. Mr. Groff thought the review would occur in September or October.
Commissioner Casello asked about the time frame and learned it would be about a year
before the project would break ground and thought they should expedite the issue.
Vote
The motion unanimously passed.
There being no further business to discuss, Mayor Grant ended the meeting at 2:03
p.m.
(Continued on next page)
7
Meeting Minutes
City Commission Special Meeting
Boynton Beach, Florida July 18, 2016
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Development Objectives
• Develop new downtown west end anchor and gateway
• Stimulate new investment and create new direct and indirect
employment in the downtown area
• Generate tourism and increase sales for local businesses
• Create a pedestrian friendly cultural campus anchored by a
regional destination (BBHS)
• Generate street level activity day and night
• Establish synergistic nodes of activity and outdoor activities with
adjacent city cultural assets!
• Reinforce the area's historic character by rehabilitating the
neighborhood, not just one building as per former development
like CityPlace in West Palm Beach
• Create new employment, with retail and event catering/
functions
• Re-brand downtown Boynton Beach's image/priming the pump!
Location Map
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Historic High School redeveloped and turned into a vibrant landmark!
• Increased positive publicity and name recognition for Boynton Beach,
beginning of transforming the immediate neighborhood and
dramatically altering the public perception of the downtown area.
• The City/CRA/Straticon/REG Architects are comprised of an
experienced development team with an impressive track record of
creating great places; "it takes a village".
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