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Agenda 01-13-09 If any person decides to appeal any decision made by the Board with respect to any matter considered at this meeting, he or she will need a record of the proceedings, and that, for such purpose, he or she may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. REVISED CRA Board Meeting Tuesday, January 13, 2009 6:30 PM City Commission Chambers 100 E. Boynton Beach Blvd Boynton Beach, FL 33435 I. Call to Order - Chairman Jerry Taylor II. Pledge to the Flag and Invocation III. Roll Call IV. Agenda Approval: A. Additions, Deletions, Corrections to the Agenda B. Adoption of Agenda v. Announcements & Awards: A. Oceanfront Concert Series - January 16, 2009 from 6:00 PM to 9:00 PM VI. Consent Agenda: A. Approval of Minutes - CRA Board Meeting December 9,2008 B. Approval of Period- Ended December 31, 2008 Financial Report C. Approval of Updated Administrative Policy Manual D. Approval of Updated Procurement Policy E. Approval of Sponsoring the Palm Beach County Business Development Board's 2009 Familiarization Program (F AM) F. Approval of Listing Agreement with Prakas Brothers for the Sale of the Alcoholic Beverage License Owned by the eRA G. Approval of Piggy-backing on Agreement between Delray Beach CRA and PMG Associates to Conduct Project Development, Financial and Real Estate Market Analysis H. Approval of the Amendment/Authorization to Proceed for Work Order # 07- 124.6710 in the Amount of $9,900.00 with MCSW, Inc. for the Production of Marina Slip Renovation Construction Drawings I. Approval of Funding up to $21,000 from the Homebuyers Assistance Program to Kyra Kyza Green VII. Information Only A. CRA Policing Activity Report for the Months of November, 2008 and December, 2008 and District Statistics for the Months of November and December, 2008 B. Boynton Beach CRA and Trolley Website Updates C. Planning and Development Board Meeting Agenda - December 23, 2008 D. Boynton Beach Named Best Practice in South Florida Workforce Housing Needs Assessment E. Old High School Transfer F. Agreements with DSS Restaurant Management to Provide Dumpster, Restroom and Electrical Services to the CRA's Boynton Harbor Marina VIII. Pulled Consent Agenda Items: IX. Public Comments: (Note: comments are limited to 3 minutes in duration) X. Public Hearing: Old Business: New Business: XI. Oid Business: A. Consideration of Master Development Agreement with Auburn Development B. CRA Staffing Plan (Tabled December 9, 2008) XII. New Business: XIII. XIV. XV. XVI. XVII. XVIII. A. Presentation of Audited Financial Statements for FY 2007-2008 B. Consideration of Request from Weiss Memorial Chapel for Use ofCRA Property for Parking C. Boynton Women's Club Request for Donation for the Club's 100th Year Celebration D. Consideration of Supporting the Greater Boynton Beach Chamber of Commerce Dinner Dance E. Consideration of Exercising Right of First Refusal on Property located at 3675 S. Federal Highway Future Agenda Items Comments by Staff Comments by Executive Director Comments by CRA Board Attorney Comments by CRA Board Adjournment ~~~qY~T8~ eRA Ii East Side- West Side-Seaside Renaissance If any person decides to appeal any decision made by the Board with respect to any matter considered at this meeting, he or she will need a record of the proceedings, and that, for such purpose, he or she may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. REVISED CRA Board Meeting Tuesday, January 13,20096:30 PM City Commission Chambers 100 E. Boynton Beach Blvd Boynton Beach, FL 33435 I. Call to Order - Chairman Jerry Taylor II. Pledge to the Flag and Invocation III. Roll Call IV. Agenda Approval: A. Additions, Deletions, Corrections to the Agenda B. Adoption of Agenda V. Announcements & Awards: A. Oceanfront Concert Series - January 16, 2009 from 6:00 PM to 9:00 PM VI. Consent Agenda: A. Approval of Minutes - CRA Board Meeting December 9,2008 7 "'" B. Approval of Period-Ended December 31,2008 Financial Report '\... .....' ~ ,/.J C. Approval of Updated Administrative Policy Manual D. Approval of Updated Procurement Policy E. Approval of Sponsoring the Palm Beach County Business Development Board's 2009 Familiarization Program (FAM) F. Approval of Listing Agreement with Prakas Brothers for the Sale of the Alcoholic Beverage License Owned by the CRA G. Approval of Piggy-backing on Agreement between Delray Beach CRA and PMG Associates to Conduct Project Development, Financial and Real Estate Market Analysis H. Approval of the Amendment/Authorization to Proceed for Work Order # 07- 124.6710 in the Amount of$9,900.00 with MCSW, Inc. for the Production of Marina Slip Renovation Construction Drawings I. Approval of Funding up to $21,000 from the Homebuyers Assistance Program to KyFa K yza Green VII. Information Only A. CRA Policing Activity Report for the Months of November, 2008 and December. 2008 and District Statistics for the Months of November and December, 2008 B. Boynton Beach CRA and Trolley Website Updates C. Planning and Development Board Meeting Agenda - December 23,2008 D. Boynton Beach Named Best Practice in South Florida Workforce Housing Needs Assessment E. Old High School Transfer F. Agreements with DSS Restaurant Management to Provide Dumpster, Restroom and Electrical Services to the CRA' s Boynton Harbor Marina VIII. Pulled Consent Agenda Items: IX. Public Comments: (Note: comments are limited to 3 minutes in duration) X. Public Hearing: Old Business: New Business: XI. Old Business: A. Consideration of Master Development Agreement with Auburn Development B. CRA Staffing Plan (Tabled December 9, 2008) XII. New Business: A. Presentation of Audited Financial Statements for FY 2007-2008 B. Consideration of Request from Weiss Memorial Chapel for Use ofCRA Property for Parking C. Boynton Women's Club Request for Donation for the Club's 100th Year Celebration D. Consideration of Supporting the Greater Boynton Beach Chamber of Commerce Dinner Dance E. Consideration of Exercising Right of First Refusal on Property located at 3675 S. Federal Highway XIII. Future Agenda Items XIV. Comments by Staff XV. Comments by Executive Director XVI. Comments by CRA Board Attorney XVII. Comments by CRA Board XVIII. Adjournment ,(/p ('I ,_ J/ I Y j;.Y ru - - -- --- -- r8KJl. ~ January 13,2009 SANSON KLINE JACOMINO & COMP~ LLP Certified Public Accountants & Consultants rsDl ~ SANSON KLINE JACOMINO & COMP~ LLP Certified Public Accountants & Ccmsultants 5805 Blue 1..49000 Drive Suite 220 Mi'lmi, Floric\'l33126 Tel. (305) 269-8633 F'lx (305) 265-0652 www.skjnetcom December 23,2008 Management and Board Members Boynton Beach Community Redevelopment Agency 915 S. Federal Highway Boynton Beach, Florida 33435 Dear Management and Board Members: Weare pleased to present the results of our audit of the basic financial statements of the Boynton Beach Community Redevelopment Agency (the Agency) for the year ended September 30, 2008. This report summarizes our audit, the scope of our engagement, and key observations and findings from our audit procedures for the year ended September 30, 2008. This report also contains the communications required by our professional standards and by Government Auditing Standards. The audit was designed to express an opinion on the Agency's 2008 basic financial statements. In accordance with professional standards, we obtained a sufficient understanding of internal control to plan the audit and to determine the nature, timing, and extent of tests to be performed. However, we were not engaged to and we did not perform an audit of internal control over financial reporting. This report is intended solely for the information and use of management and the Board, and is not intended to be and should not be used by anyone other than these specified parties. We appreciate this opportunity to meet with you to discuss the contents of this report, and to answer any questions that you may have about this report or any other audit-related matters. If you have any questions, please contact Richie C. Tandoc, Partner in charge of the audit, at (305) 269-8633, ext. 16. Very truly yours, I~~' ~/ f ~ "0 Boynton Beach Community Redevelopment Agency 2008 Audit Results and Required Communications Generally Accepted Auditing Standards and Government Auditing Standards require the auditor to communicate certain matters to those charged with governance that may assist in overseeing management's financial reporting and disclosure process. Below is a summary of these required communications, and our response to each, as they apply to the Agency as of and for the fiscal year ended September 30, 2008. Required Communication Response Auditors' Responsibilities Under Generally Accepted Auditing Standards (GAAS) and Government Auditing Standards (GAS) Our responsibility is to express opinions on the Agency's We have issued an unqualified opinion (i.e. a clean opinion) financial statements based on our audit conducted in accordance on the Agency's basic financial statements for the year ended with auditing standards generally accepted in the United States September 30. 2008. and Government Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable We have also issued our report on the Agency's internal assurance about whether the financial statements are free of control over financial reporting and on compliance and other material misstatement. matters for the year ended September 30,2008. We noted no material weaknesses or material noncompliance issues. In addition, we are required to report on the Agency's internal control over financial reporting and on compliance and other Both reports were dated November 19, 2008. matters. However, providing assurance on the internal control or compliance with certain provisions of laws, regulations. contracts, and agreements was not an objective of our audits. and accordingly. we do not express such opinions. Significant Accounting Policies Initial selection of and changes in significant accounting The Agency's significant accounting policies are described in policies or their application and new accounting and reporting Note I to the financial statements. standards during the year must be reported. Accounting principles selected by management are consistent In addition, we must discuss our judgments about the quality. with those prescribed by government accounting standards, not just the acceptability. of the accounting policies as applied and the Agency's financial statements and related disclosures in the Agency's financial reporting. are clearly presented in a complete manner. Accounting Estimates The preparation of the financial statements requires the use of For fiscal year ended September 30,2008, management's accounting estimates. We are required to inform the Board of judgment was called upon to establish the useful lives of such accounting estimates and about our conclusions regarding capital assets. We have determined that such estimates are the reasonableness of those estimates. reasonable. Methods of Accounting for Significant Unusual Transactions and for Controversial or Emerging Areas We are required to inform the Board about the methods used to We did not identify any significant unusual transactions by account for significant unusual transactions and the effects of the Agency or any significant accounting policies used by the significant accounting policies in controversial or emerging Agency related to controversial or emerging areas for which areas for which there is a lack of authoritative guidance or there is a lack of authoritative guidance. consensus. Significant and/or Unadjusted Audit Adjustments We are required to inform the Board about auditor adjustments We did not identify any material audit adjustments during our arising from the audit (whether recorded or not) that could, in audit of the financial statements as of and for the fiscal year our judgment. have a significant effect, individually or in the ended September 30, 2008. aggregate, on the Agency's financial statements. Boynton Beach Community Redevelopment Agency 2008 Audit Results and Required Communications Required Communication Fraud and Illegal Acts Weare required to inform the Board about any and all fraud and illegal acts involving senior management and any fraud and illegal acts (whether caused by management or other employees) that cause a material misstatement of financial resources. Disagreements or Difficulties with Management We are required to inform the Board about any significant disagreements or difficulties encountered with management. Major Issues Discussed with Management Prior to Retention We are required to inform the Board about any major issues discussed with management orior to retaining us as auditors. Independence Weare required to communicate with the Board, at least annually, the following: I. Disclose. in writing, all relationships between us and the Agency and its related entities that, in our professional judgment, may reasonably be thought to impede our independence; 2. Confirm in writing that, in our professional judgment. we are independent of the Agency in accordance with generally accepted auditing standards and Government Auditing Standards; and 3. Disclose any non-audit services performed for the Agency. Management Letter We are required to issue a management letter responding to certain requirements in accordance with the Rules of the Auditor General of the State of Florida. Response Weare not aware of any fraud or illegal acts that occurred during the fiscal year involving senior management, or any fraud or illegal acts involving any employee that would cause a material misstatement of the financial statements. We did not encounter any significant disagreements or difficulties with management during the course of the audit. We did not discuss any major issues with management prior to retaining us as your auditors. I. There are no relationships between us and the Agency and its related entities that, in our professional judgment, may reasonably be thought to impede our independence. 2. With regards to our audit of the Agency as of September 30, 2008, we are independent with respect to the Agency, in accordance with Rule 101 of the American lnstitute of Certified Public Accountants' Code of Professional Conduct, its interpretations and rulings, and Government Auditing Standards. 3. We have not performed any non-audit services for the Agency during the fiscal year ended September 30, 2008, or thereafter. We have issued a management letter in accordance with the Rules of the Auditor General ofthe State of Florida, dated November 19.2008. We had three new observations for the current year, none of which were significant deticiencies or material weaknesses. 2 OCEANFRONT CONCERT SERIES EXPENSE Band City Shuttle Rec. Staff Facilities Videographer Per Event $900.00 200.00 100.00 250.00 TOTALS $1,450.00 OCEANFRONT CONCERT SERIES FUNDING Mayor Taylor, Commissioners' Hay and Ross Palm Beach Post - Sponsorship Concession income from Holiday Concert Commissioner Greene donation for Events TOTAL Total for 5 Events $4,500.00 $1,000.00 500.00 $1,000.00 $2,000.00 $9,000.00 $2,000.00 $2,000.00 $1,255.20 $6,810.59 $12,065.79 ~.', ( .. €EANF I)o~nton I)each OCEANFKONT CONCE.KT SE.KIE.S Frida~ januar~ 16,2009 6:00 - 9:00 PM Frida~ F ebruar~ 20,2009 6:00 - 9:00 fM Frida~ March 20, 2009 6:00 - 9:00 PM Frida~ April 17, 2009 6:00 - 9:00 PM Frlda~ Ma~ 15,2009 6:00 - 9:00 PM Oceanfront r ark. 6+ 1 5 N. Ocean 5lvd. On A 1 A just North of the Ocean Avenue bridge. F ark and R.ide on the shuttle - park at E:>ank of America on the corner of Last Ocean Avenue and Federal Highwa~. Shuttle runs from 5:;0 FM to 9:;0 FM. E:>ring ~our folding chairs and prepare to dance the night awa~! Food &> Drinks available. Flease leave pets at home! For Information call: 561-7+2-62+6 or7~7-~256 www.bo~ntonbeachcra.com ~~ft~er:RA iii East Side-West Side-Seaside Renaissance . The PalIn Beach Post PalmBeachPost com ~~~qY~T8~ C . East Side-West S"lde-Seas"lde Rena"lssance eRA BOARD MEETING OF: January 13, 2009 I X I Consent Agenda I Old Business New Business Public Hearing Other SUBJECT: Monthly Financial Report SUMMARY: Monthly budget report to the eRA Board representing the revenues and expenses for the month ending December 31, 2008. FISCAL IMPACT: None CRA PLAN, PROGRAM OR PROJECT: N/A RECOMMENDATIONS: Approve December financia1s. ~#~ Susan Harris Finance Director T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by Meeting\FY 2008 - 2009 Board Meetings\ 1-13-09 Meeting\Financial Report.doc 12-30-2008 11:48 AM 01 -GENERAL FUND FINANCIAL SUMMARY REVENUE SUMMARY T.I.F.INCOME MARINA RENT & GRANT INC MARKETING INCOME FESTIVALS & EVENT INCOME INVESTMENT INCOME MISCELLANEOUS OTHER FINANCING SOURCES TOTAL REVENUES EXPENDITURE SUMMARY LEGISLATIVE ADMINISTRATIVE FINANCE INSURANCES PROFESSIONAL SERVICES PLANNING BUILDINGS & PROPERTY MARINA COMMUNICATIONS & TECHNOLO CONTINGENCY MARKETING SPECIAL EVENTS EMPLOYEE BEBEFITS DEBT SERVICE TRANSFER OUT TOTAL EXPENDITURES REVENUES OVER/(UNDER) EXPENDITURES ORIGINAL BUDGET 8,300,000 1,287,500 o 15,000 50,000 o 3,400,000 13,052,500 BOYNTON BEACH CRA REVENUE & EXPENDITURES REPORT (UNAUDITED) AS OF: DECEMBER 31ST, 2008 AMENDED BUDGET 8,300,000 1,287,500 o 15,000 50,000 o 3,400,000 13,052,500 MONTHLY ACTIVITY 3,071,493.00 15,185.43 0.00 0.00 0.00 0.00 0.00 3,086,678.43 YEAR-TO-DATE BALANCE 3,071,493.00 124,418.67 2,475.00 1,000.00 672.98 13 .20 0.00 ------------ ------------ ------------- ------------- ------------ ------------ ------------- ------------- 3,200,072.85 16,900 211,942 151,415 115,470 485,000 209,880 496,210 1,287,500 62,120 314,493 140,566 95,087 227,917 3,066,581 6,171,419 13,052,500 16,900 211,942 151,415 115,470 485,000 209,880 496,210 1,287,500 62,120 314,493 140,566 95,087 227,917 3,066,581 6,171,419 13,052,500 140.00 489.04) 83.50) 0.00 9,599.89 70.46 18,119.13 32,500.52 478.87 0.00 892.46 454.14 320.83 0.00 0.00 62,003.76 227.57 28,287.91 21,208.09 81,644.04 37,054.28 29,752.93 84,376.53 140,942.06 8,053.10 0.00 15,170.64 13,522.40 21,949.33 0.00 0.00 482,188.88 ------------ ------------ ------------- ------------- ------------ ------------ ------------- ------------- 2,717,883.97 o o 3,024,674.67 TOTAL ENCUMBERED 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3,750.00 0.00 36,475.00 0.00 4,099.90 0.00 0.00 0.00 0.00 0.00 0.00 44,324.90 PAGE: 1 % OF UNENCUMBERED BUDGET BALANCE REMAINING 5,228,507.00 1,163,081.33 2,475.00) 14,000.00 49,327.02 13.20) 3,400,000.00 9,852,427.15 16,672.43 183,654.09 130,206.91 33,825.96 444,195.72 180,127.07 375,358.47 1,146,557.94 49,967.00 314,493.00 125,395.36 81,564.60 205,967.67 3,066,581.00 6,171,419.00 12,525,986.22 44,324.90) ( 2,673,559.07) 62.99 90.34 0.00 93.33 98.65 0.00 100.00 75.48 98.65 86.65 85.99 29.29 91.59 85.82 75.65 89.05 80.44 100.00 89.21 85.78 90.37 100.00 100.00 95.97 0.00 12-30-2008 11: BOYNTON BEACH r REVENUE & EXPENDITURES REPO. JNAUDITED) AS OF: DECEMBER 31S1, 2008 PAGE: 2 01 -GENERAL FUND REVENUES ORIGINAL BUDGET AMENDED BUDGET MONTHLY ACTIVITY YEAR-TO-DATE BALANCE TOTAL ENCUMBERED % OF UNENCUMBERED BUDGET BALANCE REMAINING T.I.F.INCOME 01-41000 T.I.F. COLLECTIONS 8,300,000 8,300,000.0 3,071,493.00 3,071,493.00 0.00 5,228,507.00 62.99 TOTAL T.I.F.INCOME 8,300,000 8,300,000 3,071,493.00 3,071,493.00 0.00 5,228,507.00 62.99 MARINA RENT & GRANT INC 01-42115 MARINA RENTS 80,000 80,000.0 0.00 9,949.59 0.00 70,050.41 87.56 01-42116 MISCELLANEOUS RENTS FRO PROPE 7,200 7,200.0 600.00 1,200.00 0.00 6,000.00 83.33 01-42117 MARINA FUEL SALES 1,200,000 1,200,000.0 14,585.43 113,102.12 0.00 1,086,897.88 90.57 01-42118 MARINA MISC INCOME 300 300.0 0.00 166.96 0.00 133.04 44.35 TOTAL MARINA RENT & GRANT INC 1,287,500 1,287,500 15,185.43 124,418.67 0.00 1,163,081.33 90.34 MARKETING INCOME 01-43100 TROLLY MARKETING INCOME 0 0.0 0.00 2,475.00 0.00 2,475.00) 0.00 TOTAL MARKETING INCOME 0 0 0.00 2,475.00 0.00 2,475.00) 0.00 FESTIVALS & EVENT INCOME 01-44100 FESTIVAL & EVENT INCOME 15,000 15,000.0 0.00 1,000.00 0.00 14,000.00 93.33 TOTAL FESTIVALS & EVENT INCOME 15,000 15,000 0.00 1,000.00 0.00 14,000.00 93.33 INVESTMENT INCOME 01-46100 INTEREST INCOME 50,000 50,000.0 0.00 672.98 0.00 49,327.02 98.65 TOTAL INVESTMENT INCOME 50,000 50,000 0.00 672.98 0.00 49,327.02 98.65 CONTRIBUTIONS & DONATION MISCELLANEOUS 01-48100 MISCELLANEOUS INCOME 0 0.0 0.00 13 .20 0.00 13 .20) 0.00 TOTAL MISCELLANEOUS 0 0 0.00 13 .20 0.00 13 .20) 0.00 OTHER FINANCING SOURCES 01-49100 OTHER FINANCING SOURCES 3,400,000 3,400,000.0 0.00 0.00 0.00 3,400,000.00 100.00 TOTAL OTHER FINANCING SOURCES 3,400,000 3,400,000 0.00 0.00 0.00 3,400,000.00 100.00 TOTAL REVENUES 13,052,500 13,052,500 3,086,678.43 3,200,072.85 0.00 9,852,427.15 75.48 ------------ ------------ ------------- ------------- ------------- ------------- ------- ------------ ------------ ------------- ------------- ------------- ------------- ------- kOYNTm] BEAU' 'Y.c ::XPENf1ITUF,E~l EE['r)RT T1Nhl Yf< . ",F,C'EMBEP ~ (~n i?TTDGFT i\~1ENDEI BrIDGE'; 'vl0HTHL 1 ~ ,-'iT' :T'rl- ;-:.A f' ["I I i_:.;.C.~ lh.~. ~':I,JCiJMBEP~:- }"~YT (\F 8 TJT"J(~ E '; ~'~~tl:\_INIt:' :PIC.;lNAj. _'., i N,~'F T_' !,;~!iTvTRH-:Pr" , "...u : n ! (~ONTRACTTJX "X:PRN5-'\ 50[1 , SOD () 00 IJ un '1 DO ., 50C 0(: 100 00 .',I'VE)?'" SINe. .. fOC .c 700 () 00 '::;l 03 <) on 2 646 g- 98 04 - I', i .\SSO' :~EET l1'V:, i i "/I'It,; .. son <. SOCi 0 00 n 00 () or 2 500 00 lOO or PELI'.'ERY SEP~,fl },60C },~(1 140.00 140.00 (~1 .00 .l ,.:l~0....Ql 96 11 Hl"\,:;F,r -....r,~'T'--;:-,' 'T r-.' -:VD- 1 h,lOr 16 30n 14n DC 193 O~'. Ii or 16, 106 9~ 98 82 iF. , n ;FT-' . 600 600 0.00 34.54 OC 565 .46 94 .24 'T'riTTA.' "UPPLIES 600 600 0. 00 34 54 'J OU 565 .46 94 .24 16 gnr 1 ~ gOt' 1 40 no 22'7 S"7 (I nn 1 h, 672 4 , 98 65 12-30-2008 11: BOYNTON BEACH REVENUE & EXPENDITURES REPO. JNAUDITED) AS OF: DECEMBER 31S1', 2008 PAGE: 4 01 -GENERAL FUND ADMINISTRATIVE DEPARTMENTAL EXPENDITURES ORIGINAL BUDGET AMENDED BUDGET MONTHLY ACTIVITY YEAR-TO-DATE BALANCE TOTAL ENCUMBERED % OF UNENCUMBERED BUDGET BALANCE REMAINING PERSONNEL SERVICES 01-51230-100 PERSONNEL SERVICES 176,917 176,917 0.00 27,698.76 0.00 149,218.24 84.34 01-51230-115 CAR ALLOWANCE 5,400 5,400 0.00 832.00 0.00 4,568.00 84.59 TOTAL PERSONNEL SERVICES 182,317 182,317 0.00 28,530.76 0.00 153,786.24 84.35 PURCHASED/CONTRACT SERV 01-51230-225 ASSOC. MEETINGS & SEMINAR 3,750 3,750 0.00 0.00 0.00 3,750.00 100.00 01-51230-226 MEMBERSHIP DUES 6,675 6,675 275.00 705.00) 0.00 7,380.00 110.56 01-51230-227 DELIVERY SERVICES 3,000 3,000 0.00 275.42 0.00 2,724.58 90.82 TOTAL PURCHASED/CONTRACT SERV 13,425 13,425 275.00 429.58) 0.00 13,854.58 103.20 SUPPLIES 01-51230-310 OFFICE SUPPLIES 8,500 8,500 95.46 95.08 0.00 8,404.92 98.88 01-51230-315 POSTAGE 2,000 2,000 859.50) ( 715.07) 0.00 2,715.07 135.75 01-51230-355 SUBSCRIPTIONS 200 200 0.00 0.00 0.00 200.00 100.00 01-51230-360 BOOKS & PUBLICATIONS 500 500 0.00 56.72 0.00 443.28 88.66 TOTAL SUPPLIES 11,200 11,200 764.04) ( 563.27) 0.00 11,763.27 105.03 CAPITAL EXPENDITURES 01-51230-400 EQUIPMENT COSTS 5,000 5,000 0.00 750.00 0.00 4,250.00 85.00 TOTAL CAPITAL EXPENDITURES 5,000 5,000 0.00 750.00 0.00 4,250.00 85.00 DEPRECIATION & AMORT TOTAL ADMINISTRATIVE 211,942 211,942 ( 489.04) 28,287.91 0.00 183,654.09 86.65 1 -~ .-: r 1 (In PER:::" InN~! -'~n:T]:' ~qp' TtT'..~':- :~.:EP~ 1 ~ ~ .: n (\ <:ONTRJ\l:TUT ,:!}. RANI: PEES " qSS(V~ MEETJNC:;' ';::;:r~; ~"TEMBEE~;EII DUE,. 'i 13~, r, ,~ DELIVERY r::OSTS ; i ,:' .:2 ::AREEE DEVELnpr~ElT' ';!/\,(~Er! '-",-ii'.lTRJ\C'l' SRF~ rF:,~:j; .:~~)PFL,lE: .1-~ ',6 ~ ROOK}:? PUBT!:(""" )N~ '~1.{-: ih', 'lFFT""':" ';"PTNTIN'-_: '';IST ,;1 if' Tr.' r~ EX?ENI =:;:JFE " iN~li_N(- ~ :~ r<' !<: t-J1 '~. BOYNTON BEACH _I'f c.:XPENrnTURES REP"'R} iiNi'.l'r. IF DEC'EMREF L:::'l ,n n c lP~IGINAi :~T1DGE'T r,MENDEl E3lmGE~ :viONTHL, he fI'\7rT", ~!A""" i-n'Ai... IF 'TFT'L'T !MBEEI' 3UDGEcI EA1-lAN(.. ~~j-J(_"TJMR KRE; ?,p.LAN(--"P Td.;MA [NTH-': 130 260 13 0 , 2~,O 0.00 2(J_,040. or, n.on l..1cCJ, 2 2 0 ,:.9. 0 84. 62 130, :2(ji, 1:10,76(1 'I, on 20,n4f1 on r,. or) :1n,220.00 84 .r;:::l .28(: 2,280 85.12 607.20 r).OO 1,672,80 ..., 3,37 3,000 ',,000 000 485.91 0.00 2,514.09 83.80 S.75r: 5,750 65.88 154,48 n 00 5,595.52 9:.31 725 725 0.00 155.00 0.00 570.00 78.62 1,000 1,000 0.00 0.00 0.00 1,000.00 100.00 _~O ~.o 0.00 0.00 0.00 ,_3,000.00 100.00 ---- --- 15,75<; 15,755 151.00 L,402.59 0.00 14,352.41 91.10 1,500 4,500 ~.~34. 50! 234.50\ G, or' 1,734.5(' 105.21 500 500 0.00 0.00 0.00 500.00 100.00 400 400 0.00 0.00 0.00 400.00 100.00 ---~- ,-- 5,400 5.400 234.50\ 234.501 r).OO 5,634.5r: 104.34 151,415 151,41S 83.50! 21,208.0';1 1.1.00 110,206,91 85.99 12-30-2008 11: ' BOYNTON BEACH ('. PAGE: 7 REVENUE & EXPENDITURES REPOl NAUDITED) AS OF: DECEMBER 31S'!, 2008 01 - GENERAL FUND INSURANCES % OF ORIGINAL AMENDED MONTHLY YEAR-TO-DATE TOTAL UNENCUMBERED BUDGET DEPARTMENTAL EXPENDITURES BUDGET BUDGET ACTIVITY BALANCE ENCUMBERED BALANCE REMAINING PURCHASED/CONTRACT SERV '01- 51410 - 2 00 CONTRACTUAL EXPENSE 28,916 28,916 0.00 15,355.50 0.00 13,560.50 46.90 01-51410-213 GENERAL PROPERTY COVERAGE 76,394 76,394 0.00 60,257.73 0.00 16,136.27 21.12 01-51410-214 EMPLOYEE FIDELITY COVERAG 1,650 1,650 0.00 990.81 0.00 659.19 39.95 01-51410-215 DIRECTORS & OFFICERS COVE 8,510 8,510 0.00 5,040.00 0.00 3,470.00 40.78 TOTAL PURCHASED/CONTRACT SERV 115,470 115,470 0.00 81,644.04 0.00 33,825.96 29.29 TOTAL INSURANCES 115,470 115,470 0.00 81,644.04 0.00 33,825.96 29.29 BOYNTON 3EACI' ,~R; O:XPENDTTURES REPOPT nF !""lECEfvTPEF '1 c~'J f'll [THAU! 'n nr .r.:'TT 'J [1": RJ-,\ILt"'u"\JCI,' ;:;,N('T_TNBEF~_:l '.)F -i'TFNCUfvlBEEF BUnCE'] P,J:.,JJ,n.l'K"E "Er"1ATNIN, JRIGINAi BTTn--;Er: ."-MENDEI 8UDGWr r.'JONTHL ' 'El~L' T' - [.\[\1 t .r.t" ~ 1) 'O'7r ooe ~7G. 000 q 649 Rq 33 550 8 ~~ : "5 () on 123R. 699 1~ 8E .49 c_ ,U '200, 000 I; 00, 000 0 00 u au il 00 200, 000 0(1 Ion or 'J, oor 'J 000 50 00' ~L~03 .4') U on '), 496 5~ 61 .0" 48S, OO( 185, oon 'j 599 89 J';,054 28 -'r.;o DO 444 195 1..0:. 91 5',' 485, oor, 485 oon q r:;9:) 8 ~l ,." iJ r:; ,] 75 ;'i nn 444 1 05 " S ~l :) -I ,+ -, ,- "/:~ONTRACTl [l'" '-"(INTP]J~T LF ~j'.\~. "~TAFV ~(\~~'T' ,TD, '11T...'; 'H7:;~~F'T' '( \NTFj.:<' 12-30-2008 11: 01 -GENERAL FUND PLANNING DEPARTMENTAL EXPENDITURES PERSONNEL SERVICES 01-51440-100 PERSONNEL SERVICES 01-51440-115 CAR ALLOWANCE TOTAL PERSONNEL SERVICES PURCHASED/CONTRACT SERV 01-51440-225 ASSOC. MEETINGS & SEMINAR 01-51440-226 MEMBERSHIP DUES 01-51440-227 DELIVERY SERVICES 01-51440-229 CAREER DEVELOPMENT TOTAL PURCHASED/CONTRACT SERV SUPPLIES 01-51440-310 OFFICE SUPPLIES 01-51440-355 SUBSCRIPTIONS 01-51440-360 BOOKS & PUBLICATIONS 01-51440-365 OFFICE PRINTING COSTS TOTAL SUPPLIES CAPITAL EXPENDITURES DEPRECIATION & AMORT TOTAL PLANNING ORIGINAL BUDGET 184,205 5,400 189,605 11,000 825 1,000 2,500 15,325 3,500 150 300 1,000 4,950 209,880 BOYNTON BEACH ( REVENUE & EXPENDITURES REPO. JNAUDITED) AS OF: DECEMBER 31ST, 2008 AMENDED BUDGET 184,205 5,400 189,605 11,000 825 1,000 2,500 15,325 3,500 150 300 1,000 4,950 209,880 MONTHLY ACTIVITY 0.00 0.00 0.00 25.00) ( 0.00 0.00 0.00 25.00) 95.46 0.00 0.00 0.00 95.46 70.46 YEAR-TO-DATE BALANCE 28,339.24 832.00 29,171.24 571.50) 0.00 154.73 900.00 483.23 95.46 0.00 0.00 3.00 98.46 29,752.93 TOTAL ENCUMBERED 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 UNENCUMBERED BALANCE 155,865.76 4,568.00 160,433.76 11,571.50 825.00 845.27 1,600.00 14,841. 77 3,404.54 150.00 300.00 997.00 4,851.54 180,127.07 PAGE: 9 % OF BUDGET REMAINING 84.62 84.59 84.61 105.20 100.00 84.53 64.00 96.85 97.27 100.00 100.00 99.70 98.01 85.82 : f~ ...., 'I" ::Ei-:" '.:ONTR2""TT Ti, PROPERT': ,I\XE:' "ENTAl. 'F"' T ."'" :~AINTENE~J<"F :, :'LEf,,: EQUIPMEWr LEASE:T PROPERTY H!\TNTPNElj SIGNAGE u<~( :1 U (I' rn:, "ij:\f~Eri ELECTFT('11'\" 1 ,,: '.''J"ATE~) 'T_.:[_\Dn;-; "1': . 'FC """ ;,,' 1. FPEt. -'--7" l\ l r":,.PENIiTTTTPE M~~("R r\p BOYNTON REACH ;'/l:E !}-:'Tl-,:Nf EXPENDITURES REP'-:'P'] '-'HAUl' 'T' "'F DECEMREP nn nF .'R.IGINh~ B1TDGE'1 \MENDEl mmGET ~~ONTHL' E;:'~R_ -~ [( I - [IA 1!1ENI:U~1BERE' nTiL,L\NCF BUDGE'l EM,", TNn,,' [',/IT'.: HAI1ANCE ",T"' 'OMBEPEI - . -'00 2,700 180.00 374.8'0 'J. Oil ~:,325.15 86.1~ 160,000 160,000 ,639.68 ~4,190.6P n. 00 l.D5,809.32 6F, ,13 SO,'760 '10,760 1.000.00 n.52<; 00 1"5 ,00 :'.,760,00 5.44 12,88n 12,B80 353.62 L,468.62. ').00 11,411. 38 88.6(' 25.000 25,000 1,941.10 4.096.60 (),OO 20,903.40 83.61 -, 1 G 1-17(' 216,37n ~,659.00 ]0,622.65 0.00 205,747.35 95.09 10,000 1 Q..!..Q.Q. 0 0.00 0.00 0.00 _~..o.' 000 T_Q.O 100.00 4......7 7l ( .177,710 1').773.4~ g2i~~7~~.4() ""-, .4:S.0[, i58,956.6(' '5.14 1.2,500 12,500 0.00 L,438.75 0.00 11,061.25 88.49 ..~ .~.Q.QO 345.73 659.38 0.00 5, 3.!.O,.t'2 89.01 ----- 18,500 18,500, 345.73 .. .. 098 .1" ('.00 16,401.8" 88.66 496,21n 496,2111 18,Jl9.13 84,376.53 J6.4:S.0n 375,358.4 '75.65 12-30-2008 11: BOYNTON BEACH ( PAGE: 11 REVENUE & EXPENDITURES REPOl. JNAUDITED) AS OF: DECEMBER 31ST, 2008 01 -GENERAL FUND MARINA % OF ORIGINAL AMENDED MONTHLY YEAR-TO-DATE TOTAL UNENCUMBERED BUDGET DEPARTMENTAL EXPENDITURES BUDGET BUDGET ACTIVITY BALANCE ENCUMBERED BALANCE REMAINING PURCHASED/CONTRACT SERV 01-51630-200 CONTRACTUAL 500 500 0.00 450.00 0.00 50.00 10.00 01-51630-209 PROPERTY MAINTENENCE 35,000 35,000 1,067.79 2,592.79 0.00 32,407.21 92.59 01-51630-241 MARINA FUEL MANAGEMENT 148,000 148,000 12,333.00 36,999.00 0.00 111,001.00 75.00 01-51630-242 MARINE FUEL STATION OVERH 50,000 50,000 839.94 5,515.95 0.00 44,484.05 88.97 TOTAL PURCHASED/CONTRACT SERV 233,500 233,500 14,240.73 45,557.74 0.00 187,942.26 80.49 SUPPLIES 01-51630-325 ELECTRIC COSTS 20,000 20,000 381.15 1,407.59 0.00 18,592.41 92.96 01-51630-326 WATER COSTS 1,800 1,800 133.38 352.70 0.00 1,447.30 80.41 01-51630-327 GASOLINE & DEISEL FUEL PU 1,008,000 1,008,000 17,024.57 91,371.80 0.00 916,628.20 90.94 01-51630-328 MARINA DIESEL SALES TAX 19,200 19,200 720.69 2,252.23 0.00 16,947.77 88.27 TOTAL SUPPLIES 1,049,000 1,049,000 18,259.79 95,384.32 0.00 953,615.68 90.91 CAPITAL EXPENDITURES 01-51630-400 EQUIPMENT COSTS 5,000 5,000 0.00 0.00 0.00 5,000.00 100.00 TOTAL CAPITAL EXPENDITURES 5,000 5,000 0.00 0.00 0.00 5,000.00 100.00 TOTAL MARINA 1,287,500 1,287,500 32,500.52 140,942.06 0.00 1,146,557.94 89.05 BOYNTON BEAn: RXPENDITURES REPU?1 ,'" nECEMBEl,' iNAUi' ',(,,-, !IF ;",r'TI'.flC1" , f!\1BEIU,i '!!ENCUMBEPF P,J-\LJ:.NCF dUDGE'l ",TTj;r:::scr .".MENDEl P.TTDGE'i "10NTHL' 'E~,i---,-E.,J. L~l\_Lj\NCJ~ Ef"F4..INT}F 'RIGINAi .. -C!- T--r'~".' ."\ r ". 'rr "! (: r.~ "'ONTI'I\C'l'l l-r EZf'F"!'T:" c, SOU 5 500 200 au 200 00 11 00 5 300 00 96 .36 , h ,~ C) 00(' .,0, 000 C) 011 500 00 !) 00 L5 500 00 77 SO (, r r., 11':j1'.~'!' " e,oc 6 50(; 0 00 0 00 1I 0[1 6, 500 00 lOO 00 .. -{') 000 '12 001' ,;00 !) C! 4 IOU I'" 0 no 300 0 RS n " ! '[ ~:,;- c) lhi.,1 rELEPHI 'NF 'ITNE~ ~.c 200 12 200 iJ Ou 1 988 49 0 on 10, 211 SI 3.1 '7 CJ '; ~" }"j;\ -OELTJTr i r :'IJ0NEc _,-'-,.'l~ _-.2., 920 278.87 1,36~._~J .~ 099 90 2 455 .49 31 00 " , [''-"ITA) -::npPT ,TES 20,120 20, 120 278 8'1 :J 353 10 4, 099 90 12 667. 00 62 96 ITAL F:XPENUITUREEi ';1 " 'J' EQUIPMErJ' _:'_!::: 1.- ...J:.Q.,OOO . 10,00U .00 O.OC 0 00 ~_,-2QQ 00 100.00 \,...,C[~ "r..'PTTh T1'X1YRNT, ':'TTC~' 10 000 10,000 o 00 0 OD n 00 10 000 00 100 00 ",yrz,- ')f.jrN.Tl\: I'\N,.-. TECHNOL (-j2 12C 62 120 478 87 8 053 10 1 099 9[1 49 967 OC 80.44 12-30-2008 11: 01 -GENERAL FUND CONTINGENCY DEPARTMENTAL EXPENDITURES ORIGINAL BUDGET BOYNTON BEACH REVENUE & EXPENDITURES REPO. JNAUDITED) AS OF: DECEMBER 31ST, 2008 AMENDED BUDGET MONTHLY ACTIVITY YEAR-TO-DATE BALANCE TOTAL ENCUMBERED PAGE: 13 UNENCUMBERED BALANCE % OF BUDGET REMAINING PURCHASED/CONTRACT SERV 01-51990-200 CONTRACTUAL EXPENSE TOTAL PURCHASED/CONTRACT SERV 314,493 314,493 314,493 314,493 0.00 0.00 0.00 0.00 0.00 0.00 314,493.00 314,493.00 100.00 100.00 TOTAL CONTINGENCY 0.00 314,493.00 100.00 314,493 314,493 0.00 0.00 BOYNTON BEACH']) EXPENDITURES REFORT 'JI'mrr;" !\~-; nF. DErEMBEF'~ I ,c;T f_~ (J (Ii; iF l]iJDGET "1~ENDEf' BUDGEr1 HONTHL'c' "!~~AE ~ UA'rf< ,'OTII], JNi,'TJNBEPEr ,I'-JENCUMBERE! ijUDGE'.l RA'LANCE (,~EMATNIN( ,PlGINA' '\ C'T'T'iJr'T" BA [I~"'\N('F t'; . E:- c,"')'''' 1 nr ;:-1F.RS' '[I!NF!_ .-,:-;,~ 86, 632 ,8.3 ' 632 0 00 13, 328.00 O. 00 '7~",~QicJ2C! 84 6" . ~ 'UNF :FP' 86, 61: 86, 63 :' " on '. '128 IJ (' i1 nr, 7 , 104 ()r' P4 .6: _'(~iN l'F}:,~C"l .~EE 1{J( ::ONTRA~Tl1^ i T,:":YEN~:f 8, 500 8 , 500 ') 00 O. 00 Ij 00 R, 500. [)[1 100.00 ....],1 .\DVERTISINC r'In~L_r, 00(; ~ 000 0 00 0.00 o. 00 2, 000 .00 100. 00 ~, .1(1 lI.NN1J!\ r REPOR', , RpnrH\IFE: n Dor' LO, 000 0 .00 0 .00 U.OO 1 0, 000.00 100. 00 4 ;\SSOC. MEETING, (~Ef'.';IN1~r " oon , 000 O. 00 162 .70 0 00 1, 837.30 91.87 c, " .1 () (_~ :2.21- MENBERSHIP DUES 1, 334 1,334 O. 00 O. 00 0 00 1, 334 00 100.00 " .'.1 \) (1 DELIVERY SEPVICE~-, 2, 500 2, 500 O. 00 245 08 O. 00 " 254 92 90.20 ~ , :,}('1 , ~ PHOT0GRAPHY ':,lTDRn,' ~g,..QO 0 10,000 739. 00 564. 00 0.00 9, 436, 00 94. 36 ~U\SE'L' "'NT;:'" ';2P" l6,334 36, 334 "'39 no 971. 72 n on l5, 362 .27 q7 l< i ~ _L i~ ,_ :,1 '-)FFI('F -;UPPLIE - "7 son 7, 500 95 .46 134 .55 " 00 365 .45 98.21 '0 ~74nc ~ r, ':" SUBSC'FTPTION" 1, 100 1, 100 O. 00 O. 00 O. 00 1, 100.00 100. 00 74 J 6' BOOKc PUBLI ("AT 1 ,'Me. 100 100 0.00 O. 00 O. 00 100.00 100.00 n l f,r:;. OFFI(_~E FPTNTTN( 'Y)E3T.' _~" 900 .. 8,900 58.00 736.31 0.00 8, 163 .69 91.73 _.__.,...~ <[JP~1i rE.'- 17, 600 17, 600 153.46 870.86 0 00 16, 729 14 95.05 .. , D.M,',j: ---- 'lAPVVi IN" 140, 566 140, 566 892 .46 15, 170 .64 0 00 125, 395 .36 89.21 12-30-2008 11: BOYNTON BEACH PAGE: 17 REVENUE & EXPENDITURES REPOl JNAUDITED) AS OF: DECEMBER 31ST, 2008 01 -GENERAL FUND SPECIAL EVENTS % OF ORIGINAL AMENDED MONTHLY YEAR-TO-DATE TOTAL UNENCUMBERED BUDGET DEPARTMENTAL EXPENDITURES BUDGET BUDGET ACTIVITY BALANCE ENCUMBERED BALANCE REMAINING PERSONNEL SERVICES 01-57500-100 PERSONNEL SERVICES 83,262 83,262 0.00 12,809.52 0.00 70,452.48 84.62 TOTAL PERSONNEL SERVICES 83,262 83,262 0.00 12,809.52 0.00 70,452.48 84.62 PURCHASED/CONTRACT SERV 01-57500-225 ASSOC. MEETINGS & SEMINAR 2,500 2,500 83.66 278.41 0.00 2,221.59 88.86 01-57500-226 MEMBERSHIP DUES 325 325 275.00 275.00 0.00 50.00 15.38 TOTAL PURCHASED/CONTRACT SERV 2,825 2,825 358.66 553.41 0.00 2,271.59 80.41 SUPPLIES 01-57500-310 OFFICE SUPPLIES 3,500 3,500 95.48 159.47 0.00 3,340.53 95.44 01-57500-355 SUBSCRIPTIONS 250 250 0.00 0.00 0.00 250.00 100.00 01-57500-360 BOOKS & PUBLICATIONS 250 250 0.00 0.00 0.00 250.00 100.00 TOTAL SUPPLIES 4,000 4,000 95.48 159.47 0.00 3,840.53 96.01 CAPITAL EXPENDITURES 01-57500-400 EQUIPMENT COSTS 5,000 5,000 0.00 0.00 0.00 5,000.00 100.00 TOTAL CAPITAL EXPENDITURES 5,000 5,000 0.00 0.00 0.00 5,000.00 100.00 DEPRECIATION & AMORT TOTAL SPECIAL EVENTS 95,087 95,087 454.14 13,522.40 0.00 81,564.60 85.78 BOYNTON BEACH ''':PJ' h ET.n:"~l\ft;L 2XPENI"ITURES RRFURT TJNAU1 ,):~ nF DECEMBER 'L"T :'; n i' ) .;':;Cf, ; ()F iRIGINAi r~Tn)(~ErI ,'u"lENDEL RUDC;E'T c'jONTHL _~CTI\rTT"" .~~~l'd:; L(JI'j...! ~'H"'.,11'. UMBEPF 8l'. T JI~N (' F~ :JUDGE'i ,-, Er~jAINI-N(~- UA,LAN('F ',G: 'liNREREI ."~ . Clnn, I -, I F. T .1" 43 345 '13, 345 0 .00 n, 021.2," () 00 ,., 323 '7 J i16. 11 MEDJ '~_'j\.F Fi 9, 83[' 3 830 Q on 666 .'27 0 or. 8, 163 73 83 05 '1(1, PETTREHEN' 74 51~ '74 512 CI .on :'c:;o .01.1 n .00 74, 262 . or; 39.66 :1' , ['lOP KERf '''O~IF IN::-;t :\ ~ J ('J 356 6,356 0 00 rl 00 00 6, 356 00 100 or , <JUII' HEALTI' INSURANCE' r} 1 , 856 I; 1 856 O. 00 ! 1 027 .5(j r). 00 40, 828 .44 75 81 ) ':) () il, DENTl,; INSURllliCF 3, 698 3 698 8l. 77 84 S .31 O. 00 .. 852 .69 77 .14 '1 ~1 0 0 LIFE INSURANCE 2, 614 2, 614 0 00 o. 00 O. 00 2 614 on 100. 00 ')q(jrj SHORT LONG TERr.' , ll= 1 112 0 .00 0 .00 (] ,00 112.00 100. 00 Sqonn L 5 q lJNEHPLOYMENT CHAFCE: S, 000 S, 000 0 .00 0 .00 0 00 5, 000, 00 100. 00 r;90n L (; VISION INSURANCE 594 594 39 06 138 .90 O. 00 455 .10 76 .62 '~'.j n ( hl COMPENSATED ABSFN~E: - u2,5, 000 ___25,000 0.00 0.00 0.00 25, 000. 00 100.00 'rnT?T ~T.~R" , 22'7 91 .. 227,91'-' 120. 83 21 949.33 n on 205, 967 67 90.37 "i-~,EBF,FT" .....,.. " n" 2~7, 91- 120 83 ~lJ 949 11 0 00 ~os, ';6.' .6" 90 L.,,-, I I - 12-30-2008 11: VI BOYNTON BEACH REVENUE & EXPENDITURES REPC JNAUDITED) AS OF: DECEMBER 31S'l, 2008 PAGE: 22 01 -GENERAL FUND DEBT SERVICE DEPARTMENTAL EXPENDITURES ORIGINAL BUDGET AMENDED BUDGET MONTHLY ACTIVITY YEAR-TO-DATE BALANCE TOTAL ENCUMBERED % OF UNENCUMBERED BUDGET BALANCE REMAINING DEBT SERVICE OTHER FINANCING USES 01-59800-990 TRANS OUT TO DEBT SERVICE 3,066,581 3,066,581 0.00 0.00 0.00 3,066,581.00 100.00 TOTAL OTHER FINANCING USES 3,066,581 3,066,581 0.00 0.00 0.00 3,066,581.00 100.00 TOTAL DEBT SERVICE 3,066,581 3,066,581 0.00 0.00 0.00 3,066,581. 00 100.00 :.,!-, ij 1;-,1'.. q q ( , [NTEF FT,TI-n "F: I~N.s ~" ","i;" L<~XT::;F.Nnl 'f'frpf':-' lRIGINAT PTJDGE'l' ,J:1,41~.j n 1'7 j ,41 ", I ,~, 41 ') 30'{NTON BEACH:?] .'ENTT;' ~ EXPENI'ITURES REP()RT UNAU], ~~ ~F' OECEMBEP ~lST 'on{' ,-;MENDEr BUDGE') 6/1C7~,41~; "~-"-'-'.._..----'-- , 1'7 L , <~ 1 1'),052, sac 13, 05~, SQ' fo1()NTHL'" t\!:T~\J"TT~ '11 '. :"EAR - T("" GAT I 3]\~LAl'V:E 0.00 " on o.on n.O(l U. fl(1 o,no 62,003.7F 4R:,LR8.8 n 1,024,h74.67 .",717,883.97 l'uTAL ~i~rJ(11JMBEPEl 0.00 n Qr 44 . ~ 24 9 il 44,324.901 , 'NENCCmBEl<Ef BALANCE .s..,_L'7.~4},9. 0 Ci L '71 ,-4 1 Q , n n (, i--~ JiJ,41'-l j~:, S25. q8h.,,-'.~ ~; I 67l, C;.5~l. Cl7\ ::' /'"'-'_~.E~ 'F 13UDGET PEfV1A TNT}!! 100.00 100, or", lor' ill f .~)~) . CJ" 0.00 12-30-2008 11: 'I 02 -PROJECTS FUND FINANCIAL SUMMARY BOYNTON BEACH ( REVENUE & EXPENDITURES REPO. JNAUDITED) AS OF: DECEMBER 31S'l, 2008 PAGE: 1 REVENUE SUMMARY ORIGINAL BUDGET AMENDED BUDGET MONTHLY ACTIVITY YEAR-TO-DATE BALANCE TOTAL ENCUMBERED % OF UNENCUMBERED BUDGET BALANCE REMAINING FESTIVALS & EVENT INCOME MISCELLANEOUS OTHER FINANCING SOURCES TOTAL REVENUES EXPENDITURE SUMMARY OPERATING EXPENSES CAPITAL OUTLAY AFFORDABLE HOUSING ECONOMIC DEVELOPMENT PROJECTS AND PROGRAMS TOTAL EXPENDITURES REVENUES OVER/(UNDER) EXPENDITURES 0 0 5,000.00 5,000.00 0.00 5,000.00) 0.00 300,000 300,000 0.00 0.00 0.00 300,000.00 100.00 6,671,419 6,671,419 0.00 0.00 0.00 6,671,419.00 100.00 6,971,419 6,971,419 5,000.00 5,000.00 0.00 6,966,419.00 99.93 ------------ ------------ ------------- ------------- ------------- ------------- ------- ------------ ------------ ------------- ------------- ------------- ------------- ------- 465,000 465,000 0.00 0.00 0.00 465,000.00 100.00 4,091,279 4,091,279 0.00 0.00 0.00 4,091,279.00 100.00 860,000 860,000 50,000.00 31,350.13 0.00 828,649.87 96.35 809,795 809,795 25,414.01 132,179.01 0.00 677,615.99 83.68 745,345 745,345 97,859.52 125,032.97 0.00 620,312.03 83.22 6,971,419 6,971,419 173,273.53 288,562.11 0.00 6,682,856.89 95.86 ------------ ------------ ------------- ------------- ------------- ------------- ------- ------------ ------------ ------------- ------------- ------------- ------------- ------- 0 0 168,273.53) ( 283,562.11) 0.00 283,562.11 0.00 -141.(1 ," 'EtJ'1 f.ti'OI~E FESTIVe\l EVEN: 01-81 I) MISi,.'}':j ;,]\NF.. \;i fHFP F'TNANr: ING SOlJRCES .)n10n OTHER FINANcIW 1'" TRA..l-.mFER:" THH '--'T<:"'~L<nTE BOYNTON BEACH C:PI c"p. EXPENDITURES REPnp,: 'fNl\r .;. r'\F nECEMBEF',l:~'T ');)G (IF IP IGINA: RflDGET ."MENDEl BTTDGE'] tvlONTHL'l 'FE..P ~)A'r\ i'UTA ri -'UMREPEi: . ,;:lFNCUMBEPF BlID<C;ET SA.LoA.NC'F :<EMAININ'- '\C'T'T~"'TT~ EALAH'F iNCOlvlf I\JC'nMf () ~_,QQQJlf1 f), non 00 s..,0-.90.1)[' C;, non. or, n.oo I. Of' ,5_,-0 0 0.:.2.12 i 5,000,00: .00 u. () O.OCI 3_QJ2JJ2QQ 3 Q9_,.QQ 0 0.00 D. lJC n. 01.' liJO, 000:.2..0 100. OC 100,000 10G,000 , or: ') no ;) Ol' 300,000 on IOO 00 ~nTTPi--'1=<;,( 500. 000 500, 000. (I O. 00 O. 00 iJ.OO 500, 000. 00 100.00 _~,-1-71, 419 ,_6,171,'~~L9 r 0.00 0.00 0.00 6/ 171,419.00 100.00 - ..~--_...... " .,. 1071 ,41 C< h, 671. 419 O. 00 0 .00 0.00 G, 671.419, OCr 100 00 6, 971,419 6, 971,419 S, 000 .00 ~ , 000. 00 (r 00 6, 966,419 .00 99.93 - --------~~_. -------- ---.-- ---.------- --- ----------. -----------.- ------------ ---~-------- ------- - -- ------------ ------- - 12-30-2008 11:' 02 -PROJECTS FUND OPERATING EXPENSES DEPARTMENTAL EXPENDITURES BOYNTON BEACH ( REVENUE & EXPENDITURES REPOk NAUDITED) AS OF: DECEMBER 31ST, 2008 PAGE: 4 ORIGINAL BUDGET AMENDED BUDGET MONTHLY ACTIVITY YEAR-TO-DATE BALANCE TOTAL ENCUMBERED % OF UNENCUMBERED BUDGET BALANCE REMAINING PURCHASED/CONTRACT SERV 02-58100-202 CONTINGENCY EXPENSE 02-58100-203 CONTRACTUAL EXPENSE 02-58100-213 LEGAL FEES TOTAL PURCHASED/CONTRACT SERV TOTAL OPERATING EXPENSES 90,000 90,000 0.00 0.00 0.00 90,000.00 100.00 300,000 300,000 0.00 0.00 0.00 300,000.00 100.00 75,000 75,000 0.00 0.00 0.00 75,000.00 100.00 465,000 465,000 0.00 0.00 0.00 465,000.00 100.00 465,000 465,000 0.00 0.00 0.00 465,000.00 100.00 P7 (11 il'l r, .L.JMJl' '(1NS'fP I 'LTE, >IORT T\NI :' " TNFRASTRUC TUP F K~ EXPENIlj'TTT8E_ '-'k .IENTn-' SOYNTON BEAU'; :Ri. EXPENDITu'RES FEPORT UNAUL i\;~L !\:-:; iiF DECEMBEF 31ST Ilor. 'RIGINl" \MENDEl BUDGE''' WJN'l'HL', .\CTI",T IT, I'~_A.E [)j\Ti; BALANCE rUTAL nF 'NENCillmERF' 3UDGE"1 BA.LJ.ANCF :., EI{lA:-il\TIN; PUD(-;ET ,ilV'Ul'1BSPEf 650, 000 6S0, aDo 0 OC\ II 00 0 on 650, DOG 00 roo 00 (")(1 dn{ '100 00 c, n 00 n 00 Ij 00 GOO, 000 00 lOO 00 7-; 00" 75 non 0 O[) '1 00 " on 75 000 00 1.0O 00 j 6 (~_'_~~_ " .l., 3 6_6 ,_2~'9 IJ 00 0.00 u 00 l0~' 279 00 IOO 00 on, .2 '-.J ~1 ., 091,2~7CJ 0 00 o 00 !l 00 4 091, 27lJ rjll lOO 00 091 - '70 '19 ,. q nf! 0(1 nc 1 'In ''7...: ,. 12-30-2008 11:48 AM BOYNTON BEACH CRA REVENUE & EXPENDITURES REPORT (UNAUDITED) AS OF: DECEMBER 31ST, 2008 PAGE: 9 02 -PROJECTS FUND TRANSFER OUT - ASSET TRA DEPARTMENTAL EXPENDITURES ORIGINAL BUDGET AMENDED BUDGET MONTHLY ACTIVITY YEAR-TO-DATE BALANCE TOTAL ENCUMBERED % OF UNENCUMBERED BUDGET BALANCE REMAINING OTHER FINANCING USES TOTAL EXPENDITURES 6,971,419 6,971,419 173,273.53 288,562.11 0.00 6,682,856.89 95.86 ------------ ------------ ------------- ------------- ------------- ------------- ------------ ------------ ------------- ------------- ------------- ------------- REVENUES OVER/(UNDER) EXPENDITURES o o 168,273.53) ( 283,562.11) 0.00 283,562.11 0.00 L; .8 r~ (_. l.'EN11 lrUEE~- 'hi' "OMMUNll' ~;OLJ;;' ":1fi''IMTJNT"!'' ;PEt_:= I: r~x F'ErJl i'\ n~ F ; -T,"'" INNOVIc ., r5:lJT' )RIGINAL RlTI.iGEJ 175,34: 2~0, 00(' 745,..345 -: 4 S , 3 4 =, :?E\,'ENl BOYNTON BEACH EXPENDITUHES REP( Dl\GE ,JNAfT:}'C'Rj AS JF: DECEMBER "Q ~OOP IJP !\MENDED BUDGET ~.lONTHL ~, \CTI'JIT! 'EAR' Tel, DAl Dr\U\N~E ;"OTAj ;,:NCUMBEPE' 'NENCUMBEREJ "'AT ,Al>IrE BUDGE1 liEMAININr 475, 34S 67 371 28 67, 371 28 " 00 407, 973 72 85 83 270 000 ~!2,488 24 :;7,,~,l :,69 0 00 212-,}3R.3] 78 64 745 ,4~ W) 859 5 :' 125 032 9~ n Of' 620, H2 0:' 83 22 "45. 345 C)7 850 r.:;') 125 032 'l~ (i on G2CJ ll~ O? 81 ')~, 12-30-2008 11:48 AM BOYNTON BEACH CRA REVENUE & EXPENDITURES REPORT (UNAUDITED) AS OF: DECEMBER 31ST, 2008 PAGE: 7 02 -PROJECTS FUND ECONOMIC DEVELOPMENT DEPARTMENTAL EXPENDITURES ORIGINAL BUDGET AMENDED BUDGET MONTHLY ACTIVITY YEAR-TO-DATE BALANCE TOTAL ENCUMBERED % OF UNENCUMBERED BUDGET BALANCE REMAINING CAPITAL EXPENDITURES 02-58400-440 FACADE GRANTS-COMMERCIAL 75,000 75,000 0.00 0.00 0.00 75,000.00 100.00 02-58400-442 TRANSPORTATION PROGRAM 734,795 734,795 25,414.01 132,179.01 0.00 602,615.99 82.01 TOTAL CAPITAL EXPENDITURES 809,795 809,795 25,414.01 132,179.01 0.00 677,615.99 83.68 TOTAL ECONOMIC DEVELOPMENT 809,795 809,795 25,414.01 132,179.01 0.00 677,615.99 83.68 l'IJE:t,: t~)23r)f' -121\ 1;lERlf)F.N-TTl,,~ ~f\1PP()'iJEMFN'1 n I 'IOME BUYEP', ASSLST)\NCE "l' \FF')PDABLF e,'''' '.' \ HOP PESIDENTIA! 'M""n";::r ~w.PITz:,T pVPRNIITTTTPK'- '>-,1 BOYNTON BEACB "EVEm.';;: EXPENDITURES REPOl JNAUr, [ AS OF: DECEMBER ~lST ~00f' " ^,;E 'RIGTNAI B1:IDGET !',MENDEI' mIDGET MONTHL', c,rTTVTTY ,'EAP ,TO, DATF RI\LANC" 'NENCJMBERE' BALllli' C E BUDGE': Et4AININi=; TOTAL i,:N('liMBEPE: ! hl1 nn! 160, onc' 0 00 o. 00 0 00 160. 000 on 100. 00 {)'i ;}() 300, OOu 000.00 JU uoo 00 o. 00 250, 000. 00 83 ,33 Inr .')nr .oe n. 00 (I no 400, oon. 00 100, on ('. 0 0 .00 18, 649.871 0.00 ~&4.~ ',Q] o. 00 ~6 00 r. 860, aou 5U, 000 00 31, 350.13 O. 00 828.649.87 96.35 86C<, o O!~ 860, 00(' SO, 000 00 n ~ 5 CI .n ') . (10 P.:2H, 64 ~ R'. '36 .35 ~~~<tY~Te~ eRA . East Side-West Side-Seas'lde Renaissance eRA BOARD MEETING OF: January13,2009 I I Consent Agenda I I Old Business New Business Legal Other SUBJECT: Approval of Updated Administrative Policy Manual SUMMARY: The following includes an update of the Boynton Beach CRA's Administrative Policy Manual, which has been in place since 2003. Changes were made to make the manual as concise and relevant as possible to matters of an administrative nature. Please see the attached "Summary of Changes" sheet for a detailed description of all revisions made to this policy manual. A copy of the original Administrative Policy Manual is available for review at the CRA office. FISCAL IMPACT: N/A CRA PLAN, PROGRAM OR PROJECT: N/A RECOMMENDATIONS: Approve updated Administrative Policy Manual. ~tb.hJ.<-, 9- v As ley Buckl y V Administrative Services Manager T:IAGENDAS, CONSENT AGENDAS, MONTHLY REPORTSICompleted Ageoda Item Request Forms by MeetingIFY 2008 - 2009 Board MeetingsII-13-09 MeetinglAdministrative Policy Maoual.doc Administrative Policy Manual . Su~m~ry~f ~h3ng_~~__ _______.._____ Administration Section: · Removed Purpose and Structure - general information not pertinent to administrative functions · Removed Organization of Manual -- repetitive information included ill j able ot Contents · Removed staff descriptions and organizational chart as this information is nO\v provided in the Human Resources Manual · Update the Booking of Appointments section to reflect new policies - old 'version was outdated · Removed Newspaper Article Procedures as this falls under the job description of the Marketing Director and is not an office policy . l:nder the Electronic Communication section: removed the "privileged informauon" section as all communications are public record . ,^\dded a section on e-mail account set-up · Removed Document Identification section- we do not require all documents t<) have a filename and patb · Updated Agenda Section to include current agenda format, cover sheet format and distribution list . RemO\'ed Memo Format section - a memo template is provided to staff for convenience but does not have to be used. Memo formats vary according to nature of memo · Removed Interoffice Complaint Form - part of Human Resources Manual · Removed Grants Management Section - falls under the purview of the Economic Development position Public Records: . Revised the Public Records Request Procedure to include updated information provided to us by the clerks office, also included updated Record Request form (this section was moved from Administrative to Public Records) · Updated procedure to follow protocol for Public Records management eRA Board: · Updated procedure for obtaining information from eRA Board · Updated procedure for eRA Board Rotation and Appointment Festivals and Events: · This section was removed as it falls under the job description of the Special Events Director Public Relations: . Removed section on Press Releases, Web Site and Design and Distribution of Promotional Items as these sections fall under the job description of the Marketing and eommurucations Director . Updated section on Public Inquiries and Citizen Complaints to address protocol for handling these situations Human Resources: . Placed notice to refer to updated Human Resources Policy and Procedure Manual eRA Facilities: . Removed this section - included old information on location of CRA office. eRA Equipment: . Updated the contact information at IT as well as the forms necessary in requesting assistance from IT . Updated copier contact and serial number information . Removed the repair and maintenance information as these services are included in copier leases Finance and Budget: . Removed information on Budget preparation as this falls under the job description of Finance Director . Added a section on reconciling bank statements as this involves administrative staff Purchasing: . Added section to refer to Finance Director for most updated Purchasing Manual eRA eonsumable Goods: . Updated process on ordering supplies Risk Management and Insurance: . Removed section on Work Place Violence as this is part of the Human Resources Manual Communications: · ( Cpdated information on telephone ~el'V1Ces and I.:'c!utpment rel]llesh .^\dded section on FTP site Investment: · Removed this section as it falls under the job description of the Executive Director and Finance Director Travel: · Inserted updated and Board-approved Travel Policy · Added section on protocol for car rentals and insurance East SideNWest S"ldeNSeas"lde Rena"lssance BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY ADMINISTRATIVE POLICY MANUAL 2008 BOYNTON BEACH eOMMUNITY REDEVELOPMENT AGENey, FLORIDA ADMINISTRATIVE POLley MANUAL TABLE OF eONTENTS eHAPTER \ADMINISTRATION Enforcement of Provisions Administrative Directives /Management Policies Answering of Phones Booking of Appointments Smoking/Non Smoking Area E-Mail Email Account Set-up Policy and Procedures, Agenda Publication, Legal Notices and Advertisements Delegation of Authority Staff Meetings eRA Disaster Plan Political Activities Solicitation and/or Literature Distribution IpUBLle RECORDS Piling and File Storage Process Request of Public Record leRA BOARD eRA Board Members eRA Board Rotation Quasi-Judicial Proceedings Quasi-Judicial Proceedings (15 min. max) . '-'-' !PUBLle RELATIONS Public Inquiries/eitizen eomplaints IHUMAN RESOURCES Human Resources Policy ICRA EQUIPMENT IT Equipment Copier IpURCHASING Purchasing Manual Supply Orders leRA CONSUMABLE GOODS Surplus Office Furniture and Equipment T'\ADMINISTRATIVE\Administrative Policy Manual2008\Table of Contents, doc BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL TABLE OF eONTENTS (CONT) IRISK MANAGEMENT AND INSURANeE Worker's Compensation Claims Fire and Emergency Evacuation Guidelines ICOMMUNICATIONS Telephone Service, V oicemail FTP Site rrRA VEL Travel Reimbursement and Payment ear Rental iFINANCE Bank Statements T:IADMINISTRATIVElAdministrative Policy Maoua12008\TabIe of Contents. doc BOYNTON BEACH COMMUNITY REDEVELOPEMNT AGENCY, FLORIDA ADMINSTRATlVE POLICY MANUAL CHAPTER: Administration PAGES: 1 of 1 SUBJECT: Enforcement of Provisions POLICY AND SCOPE: Each managerial and supervisory employee is responsible for: 1. Ensuring that all work performed under his or her authority conforms to the policies, procedures and standards set forth in the Administrative Policy Manual 2. Informing each employee under his or her jurisdiction of changes and additions to this Manual which may apply to that employee's job. 3. Training new employees under his or her jurisdiction in the use of this manual and the policies set forth herein, as they may pertain to a particular job. PROCEDURE: Each CRA employee is responsible for: 1. Familiarity with the contents of this manual and conformance with the policies, procedures, and standards set forth herein as they may apply to the performance of his or her job. 2. Submission of suggestions to improve, update or clarify the provision of this manual so that it continues to meet the needs of the CRA and its employees. T \ADMINISTRA TIYE\Administrative Policy Manual 2008\ 1_ Adrrunistration Section \ 1.5_ enforcement of provisiuns.doc BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Administration PAGE: 1 of 1 SUBJECT: Administrative Directives/Management Policies POLICY AND SCOPE: This policy briefly lists administrative directives and management policies. The CRA is a "team" and a viable key to "team work" is communication between employees, CRA Executive Director and the CRA Board concerning, issues, etc. expressed. Your cooperation in fostering this concept will help ensure a well-managed and efficiendy operated CRA. PROCEDURE: 1. The CRA Executive Director expects to be kept fully informed of department operation/ activities at all times and in your absence, then by the next person in command. Communication can be made either verbally or in written form. 2. The CRA Executive Director expects to be notified of all emergency situations at the time they occur or shordy afterwards, either at the office or at his cell phone (312-8422). 3. The CRA Executive Director expects that management memorandums/work directives/information requests from his office be acted on and disposed of in an efficient and timely manner. Promptness is very important. 4. The procedures for having items placed on the CRA Board agenda for CRA Board consideration will be as set forth in a forthcoming memorandum. The time schedule must be met for proper and efficient agenda preparation, and you will be responsible for meeting these deadlines. 5. The CRA Executive Director shall be kept informed before initiating work on ordinances and special projects. T-\ADMINISTRA TIVE\Administrative Policy Manua12008\1 Administration Section\l ~administrative directive.doc BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Administration PAGES: 1 of 1 SUBJECT: Answering of Phones POLICY AND SCOPE: It is the policy of the Community Redevelopment Agency (CRA) to answer the phones in a professional manner, obtain as much information as possible from the party and direct the call accordingly with discretion. PROCEDURE: The phones must be answered according to the guidelines listed below: 1. The greeting must include the tide "Community Redevelopment Agency" or "CRA" and name of the speaker. 2. The speaker must then obtain as much information from the party in order to direct their call accordingly. Information should include the caller's name, company they work for, phone numbers and reason for call. Information should include the project name, problem or issue, location of issue or problem, party's involved and additional information that is needed to direct the phone call to the proper person. This will also filter any solicitors, sales calls, etc. 3. If the staff member is unavailable to take the call, calls may be transferred to voicemail or the speaker must obtain the party's name, business in which he or she is from, phone number and a brief description of the purpose of the call and record based on preference of staff member. Sign and date the message. T:\_ID~IINIS1R.,\TIVE\.Administrat1ve Policy Manual 2008\1_ Administration Section \1_Answering of Phones Policy.doc BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Adtninistration PAGES: 1 of 1 SUBJECT: Booking of Appointments POLICY AND SCOPE: It is the policy of the Community Redevelopment Agency (CRA) to book appointments according to the guidelines listed below. PROCEDURE: Appointments must be made according to these guidelines: · Must have name of person (s) the meeting is with. · Must have phone number for person(s). · Must have description of why the meeting was scheduled. · Must have the name of the person marking the schedule. · Check for conflicts. See person to resolve. · Watch for meetings out of the office vs. here. Must allow travel time to and from the meeting. T:\.ID!vlil'JISTR..-\.TIVE\Administrative Policy Manual 2008\1_ Administration Section\2_Booking of Appointments Pohcy.doc BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: A dtninistration PAGES: 1 of 1 SUBJECT: Smoking IN on Smoking Area POLICY AND SCOPE: It is the policy of the Community Redevelopment Agency (CRA) to designate smoking and non- smoking areas within CRA owned buildings. PROCEDURE: 1. There will be NO SMOKING in the CRA Office. 2. All areas will be considered NON SMOKING areas unless otherwise designated by the CRA Director. 3. All employees are responsible for compliance within the facilities which they operate. T:\_ID.:v([J\JISTR.-\.TIVE\~\dminjstr.l.tive Policy Manua12008\1_ Administration Section \3_Smoking Non Smoking }..rea Policy. doc BOYNTON BEACH COMMUNITY REDEVELOPMENY AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Administration PAGES: 1 of 5 SUBJECT: Electronic Communication (E-mail) POLICY AND SCOPE: The purpose of this policy is to establish the proper use of electronic equipment systems and/or communication tools provided by the Boynton Beach Community Redevelopment Agency (CRA) to its employees for the purpose of performing job functions, including communication, information exchange and research. It is not the intent of this policy to establish any rights of privacy and employees should not have any expectations of privacy for information contained in any communication system located in CRA premises, or used for CRA business through telecommuting from off-site locations. 1bis statement sets forth the Boynton Beach CRA policy with regard to, access to, review of, and disclosure of messages sent or received by employees or other authorized users of municipal e-mail, voice mail, facsimile, or other electronic systems. SCOPE: This policy covers all employees and all Boynton Beach CRA electronic communications systems at all locations. DEFINITIONS: Electronic Mail (E-Mail) - Electronic correspondence composed and/or sent using municipal electronic mail applications to recipients internal to the CRA, or to outside recipients using CRA gateways for delivery via the internet. For purpose of this policy, "Transmitting" an email message includes sending, replying to, or forwarding any portion of an email message created or received to another party via the CRA email system including CRA email relayed to and from the CRA server via an Internet Service Provider (lSP). Internet - A collection of computer networks that spans the globe, connecting government, military, educational and commercial institutions, as well as private citizens to a wide range of computer services., resources, and information. A set of network conventions and common tools are employed to give the appearance of a single large network, even though the computers that are linked together use many different hardware and software platforms. Intranet - A contained collection of computers and networks within the CRA connecting the members and/or employees of the CRA to a range of computer services, resources and information. Extranet - An extranet is a collaborative network that uses internet technology to link businesses, or other entities, with their suppliers, customers, or other businesses or entities that share common T:\_IDMINISTR.-\.TIVE\Administrative Policy Manual200S\C Administration Section\4-Electronic Communications (E-mail).doc - 1 - goals. An eXtranet can be viewed as part of an intranet that IS made accessible tn other cnt1t1e~ that is part of a collaborative effort with other entities. The shared information mal be accesslbi, only to the collaborating parties or, in some case, may be puhlic PROCEDURE: Email Systems: A. Use: The Email system is provided at the expense of the CRA to assist in carrying out the business of the municipality. It also permits authorized users to communicate with each other internally and with selected outside individuals, business, and other service providers that the CRA, at its sole discretion. decides should be connected to the system. The CRA considers the e-mail system to be for business use only. While it is possible that employees may decide to send personal messages, the CRA assumes no responsibility for their content or for maintaining their privacy, and municipal employees should have no expectation that such privacy will be maintained. Conducting business unrelated to the CRA, other than incidental personal traffic, is expressly prohibited. Because of our intent to operate within the law, the CR.A. reserves the right to access, review, copy or delete all email messages for any purpose and to disclose them to any party (inside or outside of the CRA) as it deems appropriate. This includes the right to install software that monitors email and internet usage. The CRA, however, bears no responsibility for the content of the messages sent or received by its employees. The CRA does not and will not preview, edit or approve material on a routine basis in the e-mail system. All messages sent on the email system are attributed solely to the individual users of the email system, and the CRA is not a party to them. The CRA shall not be liable for, assume any legal responsibility for or bear any costs arising out of email communicatiom flowing in or out of the CRA computer system. Should employees make incidental use of the e-mail system (including internet e-mail) for the purpose of transmitting or receiving personal messages, such messages will be treated no differently than any other messages (i.e. the CRA reserves the right to access, review, copy, delete, or disclose them for any purpose). Accordingly, authorized users should not use the email system to send, receive, or store any messages that they wish to keep private. (Incidental use of the e-mail system 1~ defined as occasional casual, minor, or insignificant use that does not impact upon an employee's duties or impede business-use operations.) No e-mail messages or information should be created, sent, or forwarded which may reasonably be deemed to be intimidating, hostile, or offensive in nature, or which are discriminatory on the basis of race, color, religion, sex, national origin, sexual orientation, disability, or any other basis that 10 unlawful under applicable state and federal law. Nor should any obscene, profane, abusive 01 offensive language be transmitted. Any violation of this policy is grounds for disciplinary action up to and including discharge. No e-mail or other electronic communication may be sent which hides the identity of the sender or represents the sender as someone else. All messages communicated on the CRA" email system T \~illrvfL'-;ISTR:\TIVE\c-\.c.lmini5trative Policy Mw.ual2008\ 1_ Administration Section \S_ElecrwtllC Commun!<~ations (F .mll]'dl' -, should contain the sending employee's name. The CRA bears no responsibility for any consequences resulting from any employee who uses the e-mail system for any fraudulent, or other illicit purpose, or contrary to the provisions of this policy. Any employees who become aware of misuse of the CRA e-mail system must contact the I.T.S. Help Desk immediately. B. Viewing and Protecting E-Mail Messages: In order to guard further against discrimination and disclosure of Proprietary Information, employees should exercise caution when accessing their messages in the presence of others. E-mail windows should not be left open on the screen when the computer in unattended. U sets shall not allow any other person to use their name and password to gain access to an e-mail system. Passwords are required and should be changed regularly. The city reserves the right to impose guidelines requiring mandatory password changes and encryption measures to provide additional measures of security. C. Storing and Deleting E-Mail Messages: The CRA of Boynton Beach strongly discourages the storage of large numbers of e-mail messages. Retention of messages consumes space on the network server and/or individual hard disks and can reduce their performance. Accordingly, employees should promptly delete any e-mail messages they send or receive that no longer require action or are not necessary to an on-going project. Employees should audit stored e-mail messages regularly and delete any messages that are no longer needed. The City reserves the right to establish database management guidelines on memory storage size limits. I.T.S. has implemented the following e-mail guidelines to provide proper security, virus protection and stability to the CRA e-mail enterprise system; . Users with more than SO-mb of messages will be issued a warning message. . Users with more than 60-mb will not be allowed to send messages, but will continue to receive messages until they clean-up and get below the 60-mb limit. . Users with more than 70-mb will not be able to send or receive e-mail messages until cleanup has been completed and the user is below the 60-mb limitation. I.T.S. is recommending archival or deletion of e-mail messages if no longer required. Archival information and instruction is provided in the public folders and the CRA's Intranet. D. Copyrighted Information: Use of the e-mail system to copy and/or transmit any documents, software or other information protected by the copyright laws, without proper authorization by'the copyright owner, is prohibited. Copyright protection applies to any document, photo, software, or information unless it is specifically marked as public, not copyrighted, or freeware. In the absence of any specific copyright markings, material or information should be considered copyright protected. The CRA assumes no T:\.AD~rrNTSTR..':\TIVE\Administrative Policy :Manual2008\1_ .Administration Section \S....Electronic Corrununications (E-mail).doc - 3 - responsibility for reviewing, ascertaining or policing copyrighted material that may be transmmed !I or from the e-mail system by employees E. E-Mail Etiquette: Please bear in mind that your e-mail messages may be read by someone other than the addressee. and may even have to be disclosed to outside parties, including courts in connection with litigation In accordance with the Florida Sunshine Law, and its amendment, e-mail and internet informat1on (I.e. sites visited) are liable for disclosure with a Freedom of Information request Accordinglv, please take care to ensure that your messages are courteous, professional, businesslike and tasteful Voice Mail, Facsimile, and EDI Systems: To the extent applicable, all above policy provisions related to e-mail systems shall apply to am voice mail, facsimile, or EDI (Electronic Data Interchange) system owned by the CR.A.. Restrictiom on access of these systems by others will only apply where password con trolled access is established (i.e. it is permissible for someone to leave a message in your voice mailbox, but other persons should not be given the password to access your voice mailbox.) EDI is defined as any electronic exchange of data, including modem-to-modem transfers. Municipality Internet, Intranet and Extranet Guidelines: As with e-mail, the CRA provides internet access solely to facilitate the conduct of CRA business as a public sector provider. Access to the internet may be limited at the sole discretion of the CR."" This includes the use of filtering software to bar access to certain internet addresses. Employees are expected to use the internet, intranet and extranet at all times in tl1e manner that benefits the CR.I\. The downloading and installation of software programs onto a CRA computer or onto a CR..\ network server must be approved by the department head/supervisor along with coordination and approval from the I.T.S. department The CRA accordingly will not allow its employees to (" support the recreational use of the internet, intranet and/or extranet, (2) provide access to news groups or other internet sources that are not clearly work-related, or (3) provide assistance to user~ attempting to do (1) or (2) on their own. The following activities on the internet, intranet, or extranet are specifically prohibited and mal' result in disciplinary action up to and including discharge. . Using the internet, intranet, or extranet for personal gall or for commercial activlties unrelated to the CRA. . Sending Privileged Information or CR.A. Restricted Information. . Accessing pornographic sites or sending materials that are threatening, intimidating, hostile, offensive, or discriminatory on the basis of race, color, religion, sex, national origin, sexual orientation, disability, or any other basis is prohibited by applicable law. In addition, tl1t receipt of such material and/ or showing such materials to co-workers is strictly prohibited. . Copying or otherwise converting protected electronic information. . Violating copyrights or trademark laws. . Making any unauthorized attempt to break into another organization's computer system T:\,ill:L\UN ISTR:\TIVE\ Ad.'TIlnlstrJ.b.ve Policy :'vlar.ua/ 2008\1_ Adnunistratlon SectIOn \S_Electronlc CommLL'1icJ.tions (F -rD31l') rir" - 4 - . Using the internet, intranet, or extranet for any activities not specified here that are m violation of Federal, State or local Laws Other Data Services: The CRA may establish accounts with dial-up data services and will make these services available to individual employees as necessary. Such services may only be used by employees who have been granted authorization so that we are able to manage the security and administrative aspects of the account. Use of data services is limited to business only; personal or entertainment use is prohibited. RESPONSIBILITY: The Department Head will be responsible to grant access to CRA employees by signing the initial request for internet access form. The signed form should be sent to the I.T.S. department to be processed. I.T.S. will grant access to the employee after receiving the department head signed request. I.T.S. will require the employee to sign this policy before granting [mal access. Human Resources should provide this policy with new employee orientation. T:\AD1vIINISTR...A.TIVE\Administtative Policy Manual 2008\1_ Administration Section \5_Electronic CommuIllcations (E-mail).doc - 5 - BOYNTON BEACH COMMUNITY REDEVELOPMENY AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Administration Pages: 1 of 5 SUBJECT: E-mail Account Set-up POLICY AND SCOPE: The procedure below includes instructions on email account set-up on the uses main computer or on an additional computer. PROCEDURE: (print screens can be viewed in Attachment "B") 1. First ensure that Network Authorization had been completed (see IT Equipment). 2. Double click the Microsoft Outlook icon and then click next. 3. In the following screen select Yes and click Next. 4. In the Server type, check the circle next to Microsoft Exchange Server then click Next. 5. In the Exchange Server Settings box type MAILl and be sure to uncheck the box next to Use Cached Exchange Mode. 6. In the User Name Field, type in your last name and flrst name and then click the Check Name Button to verify your user name. Click Next 7. Click Finish T:IADMINISTRATIVElAdministrative Policy ManuaI2008\l_ Administration Section\4.5_ Email set-up. doc Attachment",/\ l 1.1l /Ir/ I,/. ' i.J (,AI ~.' J/I)7)ClL/jlliJi!;{2{v?Ci \.~};JJ/Jd 07l T~o!)UUL -/4dl/n.i/){-/ Se~'-mail account 1] Double click the Outlook Icon and then click Next. . Outlook 2003 Startup Welcome to the Outlook 2003 Startup wi2ard, which w~1 guide you through the process of configuring Outlook 2003. . b","~ N~~t .;. ] [ Cancel 2] In the following screen select Yes and click Next. Account Configuration Ii E-mail Accounts '..1/ 71'~ . r'2. J\:, Vou can confl~ure Oul;look to connect to a ~rosoft Exch~e Server, Internet E-mail, or other (-mail server. Would you 6ke to confi~ure an E-mail account? eVes ONo < Back II. Next > I I Cancel e, check the radio button for Microsoft Exchan e Server. Click Next. Server Type Vou can choose the type of server your new e-mail account will work with. ,I.... 7K' I :..". '~ o Mlcrosof'l: Exchange Server Connect to an Exchange server to read e-mail, access public folders, and share documents. o POP3 Connect to a POP3 e-mail server to download your e-mail. o IMAP Connect to an IMAP e-mail server to download e-mail and synchronize mailbox folders. o HTTP Connect to an HTTP e-mail server such as Hotmall to download e-mail and synchronlze mailbox folders. o Additional Server Types Connect to another workoroup or 3rd-party mail server. < ~ack I~ Next >1 [ Cancel.. .1 In the User Name Field, type in your last name and first name and then click the Check Name Button to verify your user name. Click Next. [-nl<lil AUJIlJllb ,x , Exchange Server Settings You can enter the required information to connect to your Exchange server. Type the name of your Microsoft Exchange Server computer. For information, see your system administrator. Microsoft Exchange Server: I ~F.!.lI.lIilImlilillill .--.. o Use Cached Exchange Mode Type the name of the mailbox set up for you by your administrator. The mailbox name is usually your user name. User Name: rw;t:;h~s~~-' ._. ___._ _ , (hed r'.J.~r!le [ More Settings '" l < Back ]1,' Next > ] l Cancel 6] The most complicated step is the last one! Just click Finish. Congratulatlonsl You have successfully entered all the Information required to setup your account. To close the wizard, dick Finish. < Back il,-FinISh "1 Ifthis little fellow shows u , 'ust click OK and you're Done. :i &ame: Initials: ~ r;;-~ L _,5>~> . J ---1 :i ~ BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Administration PAGES: 1 of 5 SUBJECT: Policy and Procedures- Agenda POLICY AND SCOPE: It is the policy of the Community Redevelopment Agency (CRA) to present the agenda and backup information to the CRA Board in a systematic manner. PROCEDURE: 1. The Agenda is developed and saved into the Agenda File Folder in the appropriate year. Attachment "B" is an exatnple of an Agenda. 2. The Agenda will be presented to the CRA Executive Director for additions, deletions and approval. Staff will work on obtaining and assembling all documentation. 3. All Agenda items will have an Agenda Item Request Form (see Attachment "C") except CRA Minutes. 4. The final Agenda and backup documentation will be presented to the CRA Executive Director for approval. 5. The Executive Director will meet with each Board member to discuss any agenda questions prior to the meeting. 6. Staff will number each page of the Agenda and then make 18 copies of the Agenda and backup by Thursday prior to the CRA Board meeting, and distribute them to the Board Packet Production List (see Attachment "D"). 7. Staff will then scan the entire board packet and post on the City's "S" Drive for access by city employees who do not wish to receive hard copies. A completed scanned copy should also be placed on the T Drive under Agendas/Consent Agendas/Monthly Reports/Board Packets Complete and Scanned. 8. Staff will also post the agenda on out website. 9. 30 additional copies of the agenda and the quasi-judicial should be made and taken to the Board meeting for attendees from the public. T:\.AD~ISTR.-\TIVE\Administrative Policy Manua12008\1_ Administration Section \5_Agenda Policy & Procedures. doc Artachnlenl "B to f"'~~~k.;:. ~,. ~~~ctY~T8~Tt RA Ii East Side-West Side- Seaside Renaissance If any person decides to appeal any decision made by the Board with respect to any matter considered at this meeting, he or she will need a record of the proceedings, and that, for such pwpose, he or she may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based eRA Board Meeting Tuesday, April 8, 2008 City Commission Chambers 6:30 PM I. Call to Order - Chairman Jerry Taylor II. Pledge to the Flag and Invocation III. Roll Call IV. Agenda Approval: A. Additions, Deletions, Corrections to the Agenda B. Adoption of Agenda V. Announcements & Awards: A. Oceanfront Concert by Eloquence April 18, 2008 from 6-9 PM at Park Oceanfront VI. Consent Agenda: A. Approval of the Period-Ended March 31, 2008 Financial Report B. CRA Policing District Stats for the Months of February and March 2008 Only) (Info. C. Boynton Beach CRA and Trolley Website Updates (Info. Only) VII. Pulled Consent Agenda Items: T'\ADMINISTRATIVE\Administrative Policy Manual 2008\Administrative Policy Manual 2008.doc VIII. Public Comments: IX. Public Hearing: Old Business: New Business: X. Old Business: (Note: comments are limited to 3 minutes in duration) A. Consideration of Second Amendment to DIP A between the CRA and Boynton Waterway Investment Associates B. Consideration of Renewing Lease with Boynton Waterway Investment Associates C. Consideration of Special Events Interlocal Agreement D. Consideration of Renewing Lease with Jesus House of Worship XI. New Business: A. Consideration of Purchasing Property Located at 114 NE 5th Ave. B. Discussion of Current eRA Continuing General Contract Agreements XII. Future Agenda Items XIII. Comments by Staff XIV. Comments by Executive Director XV. Comments by CRA Board Attorney XVI. Comments by CRA Board XVII. Adjournment T:\ADJl.!INISTRATIVElAdministrative Policy Manual 2008IAdministrative Polley Manual 2008.doc A.ttachment 'i("1 ~\ilr'>'" _ ~.;K~,'.t "~.<. "t.o:- ~)" ;/ /~). -. ~~-i"-,'t. ~~~<tY~T28Ic RA . East Side-West S'lde-Seaside Rena'lssance eRA BOARD MEETING OF: Date I X I Consent Agenda I Old Business I I New Business I I Public Hearing SUBJECT: Subject SUMMARY: Summary FISCAL IMP ACT: Fiscal Impact eRA PLAN, PROGRAM OR PROJECT: eRA Plan RECOMMENDA TIONS: Recommendations Lisa Bright Executive Director T\ADMIN1STRATfVE\Administrative Policy Manua12008\Administrative Policy Manual 20G8,doc .__1,~__ Other Attachment "D" CRA Board Packet Production List - (18 Copies) Board Members/City Commission Chairman Jerry Taylor - deliver to home Vice-Chair Jose Rodriguez- deliver to city Board Member Woodrow Hay- deliver to home Board Member Ronald Weiland- deliver to home Board Member Marlene Ross-deliver to home City Manager's Office Kutt Bressner - deliver to city Carisse LeJeune - post on the S Drive City / CRA Attorney J atnes Cherof - deliver to city Chamber of Commerce Glenn Jergensen - 639 E. Ocean Avenue Director of Development Quintus Greene - deliver to city Director of Planning & Zoning Mike Rumpf - deliver to city City Clerk's Office Janet Prainito CRA Staff Lisa Bright - put in her binder Susan Harris - put in her binder Vivian Brooks - put in her binder STAFF - put in binder Sun-Sentinel Erika Pesantes - deliver to city Palm Beach Post Mitra Malek - deliver to city 30 extra copies of Agenda and Quasi-judicial forms to be placed in rear of chambers T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Monthly Board Meeting Packet Information\CRA Board Packet DISTRIBUTION List.doc BOYNTON BEACH COMMUNITY REDEVELOPMENY AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Administration PAGES: 1 of 1 SUBJECT: Publication. Legal Notices & Legal Advertisements POLICY AND SCOPE: It is the policy of the Community Redevelopment Agency (CRA) to post Legal Notices and Legal Advertisements that are consistent and in accordance with the law. PROCEDURE: 1. The originating department or employee will prepare the legal notice and/or advertisement and present the copy to the eRA Executive Director for approval. 2. Once the approval is given and the date for publication has been established then the employee or department will call the Palm Beach Post Legal Department at (561) 820-3106 or via email at legals@pbpost.com and request a price for the advertisement you wish to place. Notice should also be placed in the Palm Beach County edition of the Sun Sentinel. They can be reached at (954) 425-1701 or via email atsslegalc1assifieds@tribune.com. 3. A copy of the legal notice and/or advertisement and the price quote are given to the Controller for billing purposes. 4. A copy of the legal notice and/or advertisement shall also be kept on the T Drive under Administrative/Legal Public Notices with the File Path Name and Location noted on the document. T:\AD?vIINISTR..\TIVE\.o\dministrative Policy Manual2008\1_Administration Section\7_Publication, Legal Notices & Legal Advertistments.doc BOYNTON BEACH COMMUNITY REDEVLOPMENT AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Administration PAGES: 1 of 1 SUBJECT: Delegation of Authority POLICY AND SCOPE: It is the policy of the Community Redevelopment Agency (CRA) to designate the delegation of authority process to the Executive Director in which he or she will have the ability to delegate an authoritative figure in his or her absence. PROCEDURE: If the Executive Director needs to be absent from his or her office for a period of one full day or more, whether for business or personal reasons, that Executive Director shall designate, in writing (either memorandum or e-mail) to the CRA Board, an Acting Executive Director to be in charge in his or her absence. An Acting Executive Director shall be presumed to have been delegated full authority to act on behalf of the CRA Board unless specific limits to the scope of authority of the Acting Executive Director. The Executive Director is also required to provide a telephone number where he or she may be reached during the absence or indicate the individual in the department who has access to such information. T:IADMINISlRATIVE\Administrative Policy Manual 2008\1_ Administration Section\7.5 Delegation of Authority Policy. doc BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Administration PAGES: 1 of 1 SUBJECT: Staff Meetings POLICY AND SCOPE: It is the policy of the Community Redevelopment Agency (CRA) to assign a date and time for a monthly staff meeting in which all CRA staff members must attend. It is also the policy for the CRA to hold a weekly meeting for all management level staff. PROCEDURE: Staff meetings will be held at the CRA Office at the direction of the CRA Executive Director. The purpose of these meetings is multitudinous and can be briefly outlined as follows: to make each other aware of major actions and functions your respective department is undertaking, or for that matter contemplating; to review, assess and/or write/rewrite rules and procedures governing the general operation of the CRA; to become involved in educational training exercises and varied learning experiences pertinent to the operation of your department as well as a total scope of the CRA services; to review and prepare for upcoming Board Meetings; and last to communicate any feelings you may wish to discuss regarding CRA operations/management. Staff members' presence at these staff meetings is mandatory. Therefore, calendars must be marked accordingly. If a staff member cannot be present for whatever reason, i.e. sick, vacation, conferences, meetings, etc. he or she is responsible for following up with another staff member to obtain the notes. Full monthly staff meetings will typically take place at 10:00 am the Wednesday after monthly Board meetings. This meeting date and time can be changed at will by the Executive Director. Weekly management meetings will typically take place at 12:00 noon on Mondays. This meeting date and time can be changed at will by the Executive Director. T,\_IDMI:-lISTRATIVE\Administrntive Policy lvlanua! 2008\1_ Administrntion Section \8_ Staff M"tings Policy.doc BOYNTON BEACH COMMUNITY REDEVELOPEMENT AGENCY, LORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Administration PAGES: 1 of 1 SUBJECT: CRA Disaster Plan POLICY AND SCOPE: The purpose of this policy is to establish a proper plan to secure the information and technology of the CRA. PROCEDURES: The Boynton Beach Community Redevelopment Agency will adhere to all City of Boynton Beach Disaster Recovery Plans. Computer Files All back up copies of disks are maintained in a fireproof cabinet. Property The CRA does not maintain real property at this time. Hurricane Preparedness 24 HOURS - WARNING In the event a hurricane warning is issued for this area during normal working hours, ALL EMPLOYEES are responsible for the following procedures: . Remove and place loose papers and/ or fue folders inside desks or file cabinets . Turn off all equipment/computers, unplug all equipment/computers from wall sockets and move away from windows. Wind cords up and tie them prior to storing together. Wrap/tape computers in heavy-duty garbage bags . Place all equipment in heavy-duty garbage bags, . Cover mail equipment and copying machine with garbage bags or plastic covering and tape, . Properly turn off typewriters and wrap in heavy-duty garbage bags, . Properly turn off HP Laser Printer and 1700 Inkjet Printers. Wind and tie cords up prior to storing, and wrap in heavy-duty garbage bags, . Roll or fold maps into one stack. Put maps into heavy-duty garbage bags, plastic or Visqueen, . Remove any documents that may be on file cabinets and place in empty fIle cabinet drawers labeled properly. T:\_ID:MIN'IS1R.r\TIVE\..\dministrative Policy Manu-al 2008\1_ Administration Section\9_CR..-\ Disaster Recovery Plan.doc BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Administration PAGES: 1 of 2 SUBJECT: Political Activities of CRA Staff POLICY AND SCOPE: The purpose of this directive is to encourage employees to participate in their constitutionally guaranteed rights of expression as individuals, but to remove any potential conflicts of interest associated with political activities in the work place. The further purpose of this directive is to give employees a clear understanding of what are acceptable political activities and what are not acceptable political activities while on the job as an employee of the Boynton Beach Conununity Redevelopment Agency (CRA). PROCEDURE: Any person holding a position with the CRA shall have the same right to take part in political campaigns and to exercise their rights of franchise as any other citizen, except that no employee of the CRA shall engage in any political activity during his or her hours of work with the CRA. As an individual, each employee retains all rights and obligations of citizenship provided in the Constitution and laws of the State of Florida and in the Constitution and the laws of the United States, however, no employee shall partake in any political campaign while on duty or within any period of titne during which he/she is expected to perform services for which he/she receives compensation from the CRA. By law, individual political campaigning is not to occur on CRA property, therefore, CRA employees, as well as any other citizen, may not take part in any political campaign on any CRA owned property (except at approved political events) whether on duty or off duty. Campaign material or campaign literature may not be posted or displayed in CRA buildings or in employee work areas. Individual employees are encouraged to participate in the political process only when off duty. EXAMPLES: . Employees, as individuals, may wear campaign buttons, tee-shirts, jackets and other campaign clothing, except while on duty and/or in CRA building or on CRA grounds. Employees may not post or display any campaign materials or campaign literature in their work areas. . Employees may place bumper stickers on their cars and park those cars in CRA-owned parking lots, but employees may not pass out campaign literature in CRA-owned parking lots whether on duty or off duty. - 1 - T:\AD~UNISTRATIVE\Administrativc: Policy 1.Janual2008\1_ Administration Section\10_Political Activities Policy.doc + Employees, as individuals, may parhclpate In a telephone bank during off duty hours, mak1l1g phone calls on behalf of candidates, but may not make telephone calls on behalf of candidate, while on duty or while in CRl\. building or on CRA grounds. Employees may not identlh themselves as employees of the Boynton Beach CRA. or give the impression that the "CRJ\ II 1- supporting a particular candidate while campaigning or soliciting on behalf of a candidate + Employees may not use any CRA equipment (especially coplers or fax machmesl in support oi any candidate or political campaign. + Employees, as individuals, may participate in campaign rallies while off-duty. + Employees, as individuals, may speak on behalf of political candidates, except while on duty and except while in CRA building. "Speaking on behalf' is not interpreted to mean private conversations between individuals. + Union employees may wear union issued clothing and may identify themselves as unlOO members while campaigning for candidates during off duty hours. Campaign information mav be posted on union bulletin boards only. T \jJ.D:.HNISTR:\1TVE \ -\drninlqrative Policy j\hnu:u 2008\ 1_ .-\dminlS,LltlUfl SectK'D \ lO_Pnlitrc.l! -\Lhvine~ r.-dicy_dn BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Administration PAGES: 1 of 1 SUBJECT: Solicitation and/or Literature Distribution POLICY AND SCOPE: The purpose of this policy is to set forth the Community Redevelopment Agency's (CRA) regulations regarding solicitation or literature distribution by anyone, whether employed by the CRA or the general public during working hours and on CRA property. PROCEDURE: The CRA prohibits employees or the general public from soliciting other employees or distributing literature in connection with non work-related causes, commercial pursuits, groups, or interests. 1. PROHIBITED SOLICITATION: Employees are prohibited from soliciting other employees or distributing literature during working hours. Solicitation includes, but is not limited to: > asking employees for funds or contributions > offering goods for sale (whether for charitable or for commercial purposes) > asking employees to sign a petition > requesting employees to join or become a member of a group > soliciting an employee's support for a political candidate > requesting an employee's support or commitment with respect to causes, groups, or interest 2. USE OF CRAFACILITIES: Employees are strictly prohibited from uSillg CRA owned facilities in connection with any solicitation or literature distribution activities. This restriction applies regardless of whether employees are on, or off duty. For purposes of this restriction, eRA owned facilities includes, but is not limited to: telephones, e-mail, fax machines, computers, interoffice mail, voice mail, and photocopiers. 3. DISCIPLINE: Employees who violate this policy are subject to disciplinary action as noted ill the Human Resources Manual. T:\ADtvITNISTR....-\TIVE\Administrative Policy Manual 2008\1_ Administr:ltion Section\11_ Solicitation -literature Distribution Policy. doc BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Public Records PAGES: 1 of 4 SUBJECT: Filing and File Storage Process POLICY AND SCOPE: It is the policy of the Community Redevelopment Agency (CRA) to maintain an accurate, orderly, organized and functional filing system as well as a system of keeping track of ftles that are in use. PROCEDURE: A filing system must be created in order to separate and organize documents, paperwork, etc. There are filing cabinets in the CRA Office which are labeled according to the files they contain. They must be updated every time more files are added to the filing cabinet. When files are removed from their location, Staff must insert his or her assigned colored tab with his or her name on it into the file in order for other Staff to recognize and know who has possession of the missing file. In-Office Files should be organized as instructed below: 1. Staff must label every manila folder and hanging folder with the documents and/or paperwork they contain and file in the coinciding filing cabinet in alphabetical order. 2. An assigned Staff member will monitor all files to ensure that they are organized and complete. There are also ftles located in our off-site storage unit. When a staff member is seeking information from these files or would like to send files to the storage unit they should contact the Administrative Services Manager who will complete the following process: Storage Unit filing process: 1. Place all files to go to storage in a cardboard storage box and give box to the Administrative Services Manager 2. Administrative Services Manager will label all contents on the outside of the box with a file storage marker, see Attachment "A". Information on the storage marker includes, box number, box contents and a destroy date. Destroy date can be determined by talking with the Finance Director, who has completed a course in record retention. Marker should be placed on the front and top of the box. T: \AD:Ivffi'.JISTRATIVE \Administrative Policy IvIanu21 2008\2_Public Records Retention \CPublic Records Ret~tion Combined.doc - 1 - 3. Administrative Services Manager will update the spreadsheet titled "hems Sen I In :--toragt see Attachment "B" and take items to storage, placing them in numencal box order on r.IH shelves. 4. If a ftle needs to be pulled from storage please see Administrative Services I'vlanager who will retrieve the correct box for you. T~\_ADt-.nNISTR:\TIVE \_c\.drr.mistrative Policy !\.[anua.! 2008\2_Publtt Records Retention \ I_Public Records Retention Combm,...d,dr:c BOYNTON BEACH COMMUNITY REDEVELOPMENY AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Public Records PAGES: 1 of 3 SUBJECT: Request of Public Records POLICY AND SCOPE: The policy of the eommunity Redevelopment Agency (eRA) is to fulfill all requests for public information through a proper request format, which includes the submission by the media or party of the specified information below. PROCEDURE: The procedure for attaining publications and/or documents through the CRA is as follows: The requesting party may obtain the documents and/or publications and view them at the eommunity Redevelopment Agency (eRA) office or have them e-mailed or faxed without charge. Paper copies shall be furnished upon payment of .15 cents per page for one-sided copies and .20 cents per page for two-sided copies. eertification of documents shall be charged at $1.00 per document. 1. The CRA will supply a "Request for Public Record Information" form (ATTACHMENT "e") to the requesting party. Please note that it is not a requirement that this form be completed in order to provide the requester with the information. If the requester does not wish to complete and or sign the form, please fill out as much information as possible and keep it with a copy of the information provided. The form will include the following information: a. Name of Party b. Address of Party c. Phone # of Party d. Fax # of Party e. Email of Party f. Information Requested g. Signature of Requesting Party h. Date of Request 1. Employee eompleting Request J. Date eompleted 2. The publications and/or documents requested will be prepared by CRA staff and held in at the front desk for pickup. 3. A copy of the Requested Information and the Request for Public Record Information will be retained in the eRA office. - 1 - T:\_ID:MINISTR...\.TIVE\Administrative Policy Manual2008\2_Public Records Retention\2_Request for Public Records.doc 4. All momes collected during a request for Public Record InformatlOn should he placed 111 ell envelope and given to tl1e fmance department, along \v.Jth a copy 'If the requeST tor Pubh, Record Information fom1, '] T\_,lJ)~{ll'.J]STR..c\TIVE\_-\dmU11$t:rat1Ve Policy Manual 2008\1_ :\dministration Section \4_Request for Pubuc Records am Attachment "e" /.'-~"'. ~ , ~1~cr:Y~T8~;CRA . East Side-West Side-Seas..de Renaissance BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY 915 South Federal Highway Boynton Beach, FL 33435 Tel: 561-737-3256/Fax: 561-737-3258 REQUEST FOR PUBLIC INFORMATION REQUEST SUBMITTED BY: NAME: ADDRESS: PHONE: FAX: EMAIL: INFORMATION REQUESTED: SIGNATURE OF REQUESTING PARTY: DATE OF REQUEST: EMPLOYEE COMPLETING REQUEST: DATE COMPLETED: The requesting party may request to view the documents at the CRA Office or have them e-mailed to the requesting party without charge. Paper copies shall be furnished upon payment of $ 0.15 per page - one sided and $ 0.20 per page - two sided. Certification of documents shall be charged at $ 1.00 per document. T:\ADMINISTRATIVE\Forrns\Request for Public Inforrnation.docALL GENERAL INFORMATION AND FORMS\Forrns, Brochures, Public Reports\Request for Public Information BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: CRA Board PAGES: 1 of 2 SUBJECT: CRA Board Members POLICY AND SCOPE: It is the policy of the Community Redevelopment Agency (CRA) to maintain a list of current CRA Board Members and applications on ftle in the eRA Offices. PROCEDURE: Staff must be aware of preferences of the eRA Board members as to how they would like to receive any information designated for them. They may prefer to have documents and/or paperwork faxed, emailed.mailed or hand delivered. 1. The Administrative Services Manager will be responsible for obtaining all pertinent information from the eRA Board Members 2. Once all information is obtained it will be placed into the CRA Board of Directors list, see Attachment "A" as an example, and distributed to all staff. 3. The Administrative Services Manager will be responsible for keeping all CRA Board contact information accurate and up to date, as well as providing all updates to staff on an as-needed basis. T,\..ffiMINISTRATIVE\..\dmin;strative Policy Manu," 2008\3_CRA Board\l_ CRA Board Member.doc ATTACHMENT "A" 2007-2008 CRA Board of Directors LMayor Jerry Taylor __________ 1~~~D?:~s~i~~~_~arlen~_~?s~ Office: City of Boynton Beach (561) 742-6010 Office: City of Boynton Beach 15611 742-6010 Home:1086 SW 26th Ave Bovnton Beach_ FL 33436 Home:403 Andover Court Boynton Beach, FL 33436 Cell: (561) 389-2216 Emai1: taylorj@ci.boynton-beach.fl.us City Cell: (561) 436-8731 - Call this first Emai1: rossm@.ci.boynton-beach.fl.us marlene_ross@yahoo.com I Vice Mayor Jose Rodriguez Office: City of Boynton Beach (561) 742-6010 L Commissioner Ron Weiland Office: City of Boynton Beach (561) 742-6010 Home:947 Isles Road Boynton Beach, FL 33435 Home:2540 SW 14th Street Boynton Beach, FL 33426 Cell: (561) 248-4632 Email: rodriguezj@ci.boynton-beach.fl.us jreguez@ao1.com Cell: (561) 436-6687 Email: weilandr@ci.boynton-beach.fl.us I Commissioner Woodrow Hay l Office: eity of Boynton Beach (561) 742-6010 Home:427 NW 5th Ave Boynton Beach, FL 33435 Home: Email: hayw@ci.boynton-beach.fl.us or woodrowhay@msn.com T:\ADMlNlSTRATNElAdministrative Policy Manual 2008IAdministrative Policy Manua12008.doc BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: CRA Board PAGES: 1 of 4 SUBJECT: POLICY AND SCOPE: CRA Board Rotation The eRA Board is currently comprised of the City Commissioners. Therefore, once a commissioner is elected, he or she automatically assumes the responsibility of a eRA Board Member, as well as their duties as a eity eommissioner. See Attachment "B" (electronic copy available at T / Administrative/Administrative Policy Manual/CRA Board/07-026). PROCEDURE: Board Member rotation will follow the cycle of commissioner seats. T\.IDMINISTR.o\.TIVE\Administrative Policy Monual2008\3_CRA Board\2_CR.o\. Board Member Rotation.doc '\ttachnH"nl 1\ B Ii 1 ORDINANCE D 7 - oa b 2 3 4 ORDINANCE OF THE CITY COMMISSION OF THE CITY OF 5 BOYNTON BEACH, FLORIDA AMENDING ARTICLE I OF 6 CHAPTER 2 SECTION 2-13.2 RELATING TO THE COMMUNITY 7 REDEVELOPMENT AGENCY (CRA) TO PROVIDE THAT THE CITY 8 COMMISSION SHALL BE THE GOVERNING BODY OF THE CRA 9 AND THE MAYOR AND VICE MAYOR THE CRA CHAIRPERSON 10 AND VICE-CHAIRPERSON; PROVIDING FOR CONFLICT, 11 SEVERABILITY, INCLUSION; AND EFFECTIVE DATE. 12 13 WHEREAS, On June 16, 2007 the City Commission of the City of Boynton 14 Beach, Florida, pursuant to the authority vested in the Commission as set forth in Section 15 163.357, Florida Statutes, designated itself to be the community redevelopment agency of 16 the City of Boynton Beach and vested itself with all rights, powers, duties privileges, and 17 immunities vested by law in the community redevelopment agency, subject to all 18 responsibilities and liabilities imposed or current; and 19 WHEREAS, the City Commission desires to conform the City's Code of 20 Ordinances to properly reflect that the City Commission constitutes the community 21 redevelopment agency. 22 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF 23 THE CITY OF BOYNTON BEACH, FLORIDA: 24 Section 1. That the foregoing "WHEREAS" clause is true and correct and hereby 25 ratified and confirmed by the City Commission. 26 Section 2. That Article 1. "Administration" of Chapter 2, Sec. 2-13.2. is hereby 27 amended to read as follows: 28 Sec. 2-13.2. Governing body of community redevelopment agency. 29 (a) The members of the City Commission shall apflEli:at in aocordance \vith tho pwvisions 30 of Chapter Hi3.357(1)(!!e), Florida Statutes, constitute the governing body (Board) of the Page 1 1 2 3 4 5 6 7 8 i' 9 L i: 10 \: II 11 i! I I 12 13 14 15 16 17 18 19 20 21 22 23 lJ Community Redevelopment Agency.. the board efeomHlissionors ~as the gOyernmg body of the eOffiffiHRity redevelopmeat ar-ea. The board will be eomposed of~se'lon (7~) memberG. (c) Chair and Vice-Chair. The Mavor shall be the Chairperson and the Vice-Mayor the Vice Chairperson of the Board oithe Community Redevelopment AgencvThe City Commission, at the last meeting ifl March of eaeh year, commcneing Mareh 2004, shall appoint the Chair aad Vice Chair of the COmID1:H1ity Redoyelopmoot .\geoo)'. The tenn of appointment t-o the positioR of Chair or Vice Chair of tho Board is one (1) year commeacing the first Tuesday in .^..pril following appointment. Board members may be appomtoo to eORsecunve terms as Chair or Vice Chair, not to exceed tmee (3) ecmseeutivc terms Section 3. Conflicting Ordinances. All prior ordinances or resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Section 4. Severability. If any section, sentence, clause, or phrase of this Ordinance is held to be invalid or unconstitutional by any court of competent jurisdiction, then said holding shall in no way affect the validity of the remaining portions of this Ordinance. Section 5. Inclusion in Code. It is the intention of the City Commission of the CITY OF BOYNTON BEACH, Florida, that the provisions of this Ordinance shall become and be made a part of the CITY OF BOYNTON BEACH Code of Ordinances; and that the sections of this ordinance may be renumbered or relettered and the word "ordinance" may be changed to "section," "article," or such other appropriate word or phrase in order to accomplish such intentions. Page 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Section 6. Effective Date. 2 This Ordinance shall be effective inunediate1yafter adoption by the City Commission. PASSED FIRST READING this !L day of S e.fT. , 2007. SECOND AND FINAL READING ADOPTED this A day of Q-;'T. -' 2007. C~~EACH, FLORIDA /~ayot:-J cfr- . - .,- ~ ~.r .. .-- . - . \. .----- ( \. / ATTEST: \ ) Page 3 II BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: CRA Board PAGES. 1 of 2 SUBJECT: Quasi-Judicial Proceedings POLICY AND SCOPE: Attached are the guidelines to represent a generalized procedure for conducting a quasi- judicial hearing. PROCEDURE: SeeATfACHMENT "C". T: \_IDMINISTIv\TIVE\Administrattve Policy Manual 2008\3_CR.-\ Boatd\3_Quasi-Judicial Peoceedings.doc - 1 - ATTACHMENT "C" QUASI-JUDICIAL PROCEEDINGS BEFORE THE CRA BOARD! 1. The Chairperson announces the agenda item. 2. The CRA Attorney or City Clerk swears in all witnesses. 3. The CRA Attorney outlines tlle hearing procedure, including a statement that any member of the Board may, at any time during the presentation of testimony, question any witness. 4. Attorneys or other individuals acting ill a representative capacity make their appearances. 5. The Applicant presents its case, including acceptance or objection to proposed conditions of approval. 6. eRA Staff members present a summary of the issues before the Board, testify as to tlleir opinions and make recommendations for inclusion in "Conditions of Approval." 7. Supporters of the application present their case, offer their opinions, and cross-exam previous witnesses. 8. Opponents of the application present their case, offer tlleir opinions, and cross-exam previous witnesses. 9. Other members of the public offer their opinions. 10. Rebuttal evidence and cross-examination of witnesses by applicant. 11. Re-questioning by Opponents, strictly limited to newly raised facts or opinions and closing comments. 12. Closing comments by applicant. 13. Closing comments by CRA Staff. 14. Deliberation and questions by the Board. 15. Final determination by the Board. 1 These guidelines represent a generalized procedure for conducting quasi-judicial hearings and are subiect to modification on a case-by- case basis. The controlling principle is that all interested paraes have the opportunity to offer testimony, evidence and conduct cmss examinatlon of Witnesses. T:\AD~{INISTR...-\TIVE\Adminjstrative Policy !vlanu.u 2008\3_CR--\ Board\3_Quasl~Judlcial Proceedings.doc :2 BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: eRA Board PAGES. 1 of 2 SUBJECT: Ouasi- Judicial Proceedings (15 min. max) POLICY AND SCOPE: The following is the guidelines to represent a generalized procedure for conducting a quasi- judicial hearing with presentation maximums. PROCEDURE: See ATTAeHMENT "D". T:\.IDMINISTIUTIVE\Administtanve Policy Manual 2008\3_CRA Board\4_Quasi-JudJcia! Proceedings 15 Min Max.doc - 1 - A TT ACHMENT "D" BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY QUASI-JUDICIAL PROCEDURES1 1. Ex parte disclosures by CRA Board I\fembers 2. The CRA Attorney outlines dle hearing procedure, including a statement that any member of the Board may, at any time during the presentation of testimony, question any witnesses. 3. Attorneys or other individuals acting in a representative capacity make theiI appearances 4. Request for identification of any intervenors2 5. The CRA Attorney or City Clerk swears in all witnesses. 6. City staff members present a summary of the lssues before the Board, testify as to their opinions and make recommendations for inclusion in "Conditions of ApprovaL" (The eRA generally limits staff presentations to 15 minutes) 7. CRA staff members offer theiI comments and recommendations (The CRA generally limits CRA staff presentations to 15 minutes). 8. The Applicant presents its case, including acceptance or objection to proposed conditions of approval. (The CRA generally limits applicant presentations to 15 minutes) 9. Intervenors present their cases, offer their facts and opinions, and cross-exam1ne previous witnesses. (The CRA generally limits intervenors presentations to 15 minutes) 10. Members of the public offer theiI facts and/or opinions. (The CRA generally limits public presentations to 3 minutes). 11. Intervenor rebuttal / fInal comments. ([he CRA generally limits intervenor rebuttal presentations to 3 minutes). 12. Applicant rebuttal / fmal comments. (The eRA generally limits applicant rebuttal presentations to 5 minutes). 13. Staff rebuttal / fmal comments. (The CRA generally limits staff rebuttal presentations to 5 minutes). 14. CRA questions and deliberation / decisions. , The guidelines represenl a ganeralized procedure for conducting quasi-judicial heanngs and are subject to modification on a case-by-case baSIS. The controlling principal is that all interested parties have the opportunity to offer testimony. evidence and conduct cross-examination of witnesses 2 An intervenor can be a person or a business, or even another government entity. who claims to have a direct and personal interest in the pending matter and who wants to have lha same legal rights and responsibilities to participate in the public haaring as the actual parties have. For example. an intervenor may also question the witnesses presented by parties and other intervenors, and can call its own witnesses, who will be sworn to tell the truth and will be subject to possible cross-examination by the parlies and other intervenors. The decision whether to grant intervenor status will be made by the Board Someone who does not qualify to be an intervenor, or could qualify but just does not want to be one, may be allowed to speak briefly on his or her own behalf either to present facts or to state opinions, but cannot question witnesses, present witnesses, and so forth It should be noted that being an intervenor in a matter under consideration by the Board does not guarantee that the intervenor can challenge or appeal the final decision in a judicial or administrative proceeding. Also, being an intervenor here may not eVen be a prerequisite to filing a challenge or appeal of the final decision depending upon what state laws or court rules require T\.-\I)!\{INlSTRATrvE\Administrative Pohey Manual2008\3_CR..-\ Board\4_Qu:L5i-JudlCial Prnceedings 151\imMa.x.dGl :2 BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Public Relations Pages: 1 of 1 SUBJECT: Public Inquiries/Citizen Complaints POLICY AND SCOPE: It is the policy of the eommunity Redevelopment Agency (CRA) to respond to public inquires and provide the public with information or direction as to where to file eitizen Complaints. PROCEDURE: 1. When a resident of the City of Boynton Beach calls into the eRA offices making an inquiry about CRA services, City of Boynton Beach services, lodging a complaint about a CRA Staff, or expressing a general concern relative to the CRA, the call shall be handled in one of the three manners outlined below. · Respond directly if staff has first-hand knowledge of the answer to the inquiry or concern. · Transfer the resident to the CRA or eity staff that can directly help them by having fttst-hand knowledge on their inquiry or concern. · When the answer to the inquiry or concern is not fully known, then the CRA Staff will take a message indicating the residents name, phone number and description of the inquiry or concern. The staff will indicate that he/ she will direct the question to the appropriate person and this person will respond directly to the resident in a short time. 2. All complaints made to the CRA that pertain to the CRA should be logged into the CRA Complaint Log Spreadsheet located under the Administrative Folder on the shared drive. T,\_IDMINISTRATIVE\Administrative Policy M:mual2008\4_Public Relations\l_ Public Inquiries.doc BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Human Resources Pages: 1 of 1 SUBJECT: Human Resources Policy POLICY AND SCOPE: It is the policy of the Community Redevelopment Agency (CRA) to provide a human resources policy and procedure manual to all employees. PROCEDURE: Please refer to the completed Human Resources Policy and Procedure Manual provided to employees by the Finance Department. T:\.ID1vIIN'ISTR...-\.TIVE\.Administra:tive Policy Manual2008\5_Human R.esources\Human resources.doc BOYNTON BEACH COMMUNITY REDEVELOPMENY AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: eRA Equipment Pages: 1 of 3 SUBJECT: IT Equipment POLICY AND SCOPE: The eommunity Redevelopment Agency has contracted with the City of Boynton Beach to host and service our IT Equipment and Service. PROCEDURE: eRA Staff will contact earlos Aiken at 742-6079 or the IT Help Desk at speed dial 7024 for Technical Support. If needed, staff will complete the attached IT Request for Service form (Attachment "A"). This form can be found on the T Drive under Human Resources/Human Resources/Employee ITS Forms. The Human Resources person, Finance Director or Assistant Finance Director will complete the attached, ITS Network Access Authorization form for new employees to set up their email and computer stations. This form can also be found under Human Resources/Human Resources/Employee ITS Forms. T:\ADMINISTRATIVE\Administrative Policy Manual2008\6_CRA Equipment\l_ IT Equipment.doc Attachment ,j A' INFORMATION TECHNOLOGY SERVICES REQUEST FOR SER,TICE FORM Do not use this form for Network Authorization or AS/400-HTE Authorization. Use this form to request any non-emergency type of service from !.T.S. (Le., hardware/software purchases, application development additional phone & data installations, relocations, etc. etc.) Department/Division Requested By/Phone No. Date Submitted Account No.: DEPARTMENT DIRECTOR'S SIGNATURE DATE Request (statement of needs): Reason for request: I I L Our goal is to complete your request within 21 business days. ITS Department will notify you should this timeframe need to be adjusted, ITS Tech Support: (561) 742-6789 T \ADMINISTRA TIVE \ Admirustrauve Policy Manual 2008\(,_ eRA Eguipment\ 1_ IT E:qwpment tIoe ITS Network Authorization Form PLEASE FILL OUT ALL FIELDS. THIS WILL SPEED UP THE TIME NECESSARY TO COMPLETE THE REQUEST. OTHERWISE, THE FORM WILL BE RETURNED TO THE DEPARTMENT FOR COMPLETION. THIS REQUEST IS CONSIDERED NORMAL BUSINESS WITH A RESPONSE OF 3-5 BUSINESS DAYS AFTER IT IS RECEIVED IN I.T.S. Severity Code Customer Impact Service Response to Resolution Time Customer 6 - User Securi Normal Business 3 - 5 business da s 3 - 5 business da s REQUEST BY (THIS IS THE PERSON THAT WILL BE THE CONTACT FOR TIDS REQUEST) Name: Telephone: Department: Date 8ubmitted User Information Last Name: DepartmentILocation: Title: First Name: II o TERMINATION o NEW HIRE o CHANGE / TRANSFER II NETWORK USER PROFILE Add/ Revoke/ Change Delete o o o o o o o Departmental Folder (8:\ drive) Don't Delete o Files Move To: Personal Folder (G:\ drive) Dial-in (please justifY): Change Name to EXCHANGE MAILBox (E-MAIL) Add/ Revoke/ Change Delete o o o o Don't Delete o Files Move To: User Profile Distribution Lists: COMMUNICATIONS Add/ Change Revoke o o o o o Phone extension Ext.: o o o Voice mail Ext: Long Distance Access Code (last 5 digits of 88#) Pager/Cell Phone (Describe): Acct. No.: Amount: o Text Messaging for Pager/Cell Phone AS/400-H.T.E. To Add or Change Submit "ITS AS/400 - H. T.E. Authorization Form" Don't Delete o Disable/Delete User Profile 0 Objects Move To: Note: For other requests not covered by this document please submit an "ITS Request for Service Form" with detailed information of your requirements. T:\ADMINISTRATIVE\Administrative Policy Manual2008\6_CRA Equipment\C IT Equipment.doc BOYNTON BEACH COMMUNITY REDEVELOPMENY AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: CRA Equipment Pages: 1 of 1 SUBJECT: Copier POLICY AND SCOPE: The Community Redevelopment Agency leases 2 copiers. One is from Oce and the other is from Milner, Inc. PROCEDURE: Oce Copier: Our model number is eM 4520 and our serial number is 7030015. The CRA has contracted for 20,000 copies per month and maintenance, toner and imaging units are included in the monthly fee. To call for supplies or service: 1-800-243-5556 Milner Copier: Our model number is e3500spf and our serial number is 76820423. The eRA has contracted for 21,000 black and white copies per month and maintenance, toner, and labor are included in the monthly fee. To order supplies go to Milner.com or call: 1-877 -264-563 7 To request service go to Milner.com or call: 1-800-875-5046 T:\ADMlNISTRATIVE\Administrative Policy ManuaI2008\6_CRA Equipment\2_ Copier.doc BOYNTON BEACH COMMUNITY REDEVELOPMENY AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Purchasing Pages: 1 of 1 SUBJECT: Purchasing Manual POLICY AND SCOPE: The eommunity Redevelopment Agency has an official purchasing manual. PROCEDURE: To review the most current purchasing manual, please contact the finance director. T,\.o\DMINISTR.o\.TlVE\.Adminisuativ, Policy lvIanual2008\ 7]urchasmg\1_Purchasmg Manual.doc BOYNTON BEACH COMMUNITY REDEVELOPMENY AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Purchasing Pages: 1 of 2 SUBJECT: Supply Orders POLICY AND SCOPE: All supplies are inventoried and ordered by the Administrative Assistant or Administrative Services Manager. The Community Redevelopment Agency has a process for ordering and tracking all supplies ordered for the main office, as well as the Marina office. PROCEDURE: 1. Staff must first compare current inventory of office supplies with a checklist in order to determine supplies needed. 2. After going through the current supply, complete the Office Supply Request Form (Attachment A). 3. Give fully completed form to Administrative Assistant or Administrative Services Manager. 4. Order is placed on-line or via phone. 5. Print confirmation of order and attach all corresponding Office Supply Request Forms to the confirmation. 6. Forward to the Finance Director for filing and backup document purpose 7. After receiving the shipment of supplies, they must be compared to the packing list and put away in the storage room. 8. If there are supplies that are not correct, follow the returns policy of the current supplier either online or by phone. T: \.ADlvITN'ISTRATIVE \Administrative Policy !vlanual2008\8_Conswnable Goods \ 1_Recquisition of Office Supplies.doc Attachment "A" BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY 915 S. Federal Highway Boynton Beach, FL 33435 OFFICE SUPPLY REQUEST FORM NAME: DATE: , ' ", ' '" . " '. c- ,~, ' " , ,- . _ . ~ ''l!i ~ _ _-R ~~ :} . .. n. ..- .', . ,,' ~..'" "'';'''' C'-' .' I 1-- -'"'' J ~- -.-- I f~_ _~__,_____. _._..._~" I ! i . ---=-.-t I I ! i + -~ ... -.----l j i ---~~- I .+-- I i _.__+n I i '- 'f '1' I 1 I + I i t -+ -+ I t + I I +- i -r __n' .._.....1. ". .1.__ . .... .'n'" __". ._... If possible. please allow a minimum of five days for orders to be completed TOTAL FOR ALL ITEMS: Signature of Employee: Signature of HR Designee: BOYNTON BEACH COMMUNITY REDEVELOPMENY AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: CRA Consumable Goods Pages: 1 of 1 SUBJECT: Surplus Office Furniture & Equipment POLICY AND SCOPE: The purpose of this policy is to establish the procedure for surplus office furniture & equipment. PROCEDURE: Surplus may be defined as material, equipment and/or parts in excess or any item not having a foreseeable use within one year (i.e. desks, file cabinets, office machines, etc.). These items should be declared surplus. The Executive Director will determine if the material will be sold, given away, or destroyed. TI\.IDMIN!STlL-I.TIVE\Administt:ltive Poliey Manual2008\8_Consumable Goods\2_ Surplus Office Furniture & Equipment.doc BOYNTON BEACH COMMUNITY REDEVELOPMENY AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Risk Management and Insurance Pages: 1 of 4 SUBJECT: Workers' Compensation Claims (Reporting on-the-job injuries or illness) POLICY AND SCOPE: The purpose is to establish the Community Redevelopment Agency (CRA) procedures for Workers' Compensation claims. Summit Workers' Compensation Managed Care is the insurance company of record for CRA claims. PROCEDURE: A. EMERGENCY MEDICAL TREATMENT: 1. Serious injuries requiring immediate emergency medical treatment, such as profuse bleeding, broken bones, severe pain, unconsciousness, shock, serious impairment to bodily functions, serious dysfunction of any bodily organ or part, or pregnant women who is having contractions shall warrant immediate emergency treatment. 2. In emergencies, use the nearest Hospital Emergency Room, which, in the City of Boynton Beach and immediate surrounding areas, is Bethesda Memorial Hospital. When this health care provider is not immediately available, the nearest Emergency Medical Facility or Walk-in Clinic may be used. 3. For all emergencies, call EMS assistance or 911 for transport to the local Hospital Emergency Room. 4. Administer first aid until help arrives. The first aid kit is located in the bathroom of the CRA office. 5. The injured person's supervisor or rescue personnel shall, when possible, advise the Hospital Emergency Room personnel to the nature of injuries of the patient being sent to them. This can be done by telephone. 6. The injured person's emergency contact information is in the personnel file located in the Controller's office. The Controller or designee shall contact injured person's emergency contact person to inform them the status and location of the injured, once EMS has determined what is best. 7. Once the injured person is receiving care, and accident / incident report needs to be filled out and turned into the Human Resources Department. Human Resources will T;\_ID:MINISTIL-\TIVE\Administrative Policy Manua12008\9 _Risk Management and InslU'arlce\l_\l'orkers Compensation Claims.doc - 1 - then notify the Summit Claims Center (\X7orker~' Compensation Insurance Camel within seven (7) days of the incident (see attachment':'\"j B. INJCRIES NOT CONSTIT1TTIN< ~ \1\ EMERGENCY Hl~T REQUIRING PHYSICIAN'S CARE. 1. Accident / incident report needs to be filled out and turned into the Human Resources Department. Human Resources will then notify the SWTllnit Claim;. Center (\Xlorkers' Compensation Insurance Carner) within seven (') days of dw in cident, 2. The employee can go to any Hospital or Walk-in Clinic listed in the Swum1T Managed Care Network Provider Directory. 3. Exceptions: If the injury is to the eyes, then the injured person can go to their eye doctor. If the injury is to the mouth, they can go to their dent1st. 4. Once the injured employee has gone to the initial medical care provider, if furthe1 treatment is needed, they must call their claims adjuster for approval of addition ai treatment and approved medical providers. C. REPORTING POLICIES - ACCIDENT / INJURY. 1. All injuries and accidents, no matter how minor, shall be reported promptly to the immediate supervisor as soon as physically able and no later than the end of the immediate shift. 2. All injuries and accidents which require treatment by a physician shall be reported a;. soon as possible to the Human Resources Department. 3. The injured person and Human Resources shall complete all required reports in, timely manner. 4. In the event of a fatality, notification of next of kin, or those persons so designated by the employee in the event of an emergency, shall be coordinated through and approved by the CRA Executive Director. D. REPORTING VEHICULAR COU~ISIONS 1. All vehicular collisions involving personal vehicles on Boynton Beach CRA business. no matter how minor, shall be reported promptly to the Police department fOJ reporting and investigation. 2. The involved employee, if physically able, shall call for a police officer. The employee shall also request that all parties, witnesses and properties concerned remain at the scene of the accident, if physically able, until law enforcement representative has released them. The employee shall refrain from making T \.ID~ffi\'ISTRA.TrVE \A.dmrni:;tra~.c Pol1cy ~Janu;1l20[J8\9 _Risk ~.[:m<tgement and !muranu" C\X'orker~ Compensation Clairr,c.doc statement to anyone other that the investigating officer and that statement shall be confined to factual observations. 3. Any time an accident causes injury which requires treatment by a physician, the injury shall be considered an industrial injury and shall be reported promprly to the Human Resources Department as soon as physically able and no later than the end of the immediate shift. 4. A copy of all police reports and any statements attached thereto will be forwarded to the Human Resources department within 48 hours. The Human Resources Department will proceed with any and all claim filing. 5. Damage to the vehicle shall be reported to the Human Resources Department, who will transmit a copy of the damage cost request to the Workers' Compensation Insurance Company for authorization of final repair. DEFINITIONS: 1. Occupational Injury: A personal injury arising out of and in the course of, employment and includes an injury caused by the willful act of a third person directed against an employee because of his employment. Treatment for these injuries is outlined below and supervisory personnel shall ensure compliance. 2. Occupational Illness: A disease caused by certain hazardous conditions or materials when there is a direct causal connection between the condition under which the work is performed and the occupational disease. 3. Industrial Injury: A personal injury arising out of, and in the course of, employment with the Boynton Beach CRA. FALSE CLAIMS An individual who makes a false statement of a material matter which is willfully made with the intent to deceive, or an individual who collaborates in making a false claim, is committing a criminal act and shall be subject to the full penalties provided by the law. T:\_ID?\fiNISTR..!\TIVE\Administrative Policy M3nu:al2008\9 _Risk 1\lanagement and Insur.mce\l_Workers Compensation Chums.doc - 3 - Attachment 'I A l! FIRST REPORT OF INJURY OR ILLNESS ORIDA DEPT. OF LABOR & EMPLOYMENT SECURITY DIVISION OF WORKERS' COMPENSATION For assislance call 1.800.342.17 41 or contacl your local EAO Office Report all deaths wilhin 24 hours (904) 488-3044 i--------........-----.-....r-.... I RECEIVED BY CARRIER i r-.... ....--.-......... ......-. -----...-.1'.- SENT TO DIVISlm, ::>IVISION PEl 1Ji' j ,,: NAME (First, Middle, Last) i i I I I EMPLOYEE INFORMATION --,_.__._-~-_.- .'._..... PLEASE PRINT OR TYPE SlreeVApl. #: _.___._.__. I Social Securi1y Number i I EMPLOYEE'S DESCRIPTION OF ACCIDE'NT (Include Caese of Inj"rv)'---- I ! Dale of Accident (MonthrDayfYear) -"-_.~ of Accide~I-.- I HOME ADDRESS _ _...._ _.1._ ..__.__,.____,_~._ LI 11,1,1 W Pf.~ City: TELEPHONE Area Cede Stale: NumbE:!r Zip: OM i _~ INJURY/ILLNESS THAT OCCURRED I EMPLOYER INFORMATION I PART OF BODY AFFECTED 1__--___. ^"__.______.....__. OCCUPATION DATE OF BtRTH SEX of .. I FEDERAL LD. ---~ I DATE FIRST REPORTED (Month/DaylY COMPANY NAME: NUMBER (FEIN) ---.------------ ---'~ I I D.B,A: I I POLICY/MEMBER NUMBER -_._~--------_._-------~ - I NATURE OF BUSINESS -----.._--~. -~- Street: -.----------- I City: Slate: Zip: -. " . TELEPHONE Area Code Number DATE EMPLOYED PAID FOR DATE OF INJURY / / o YES o t~o EMPLOYER'S LOCATION ADDRESS (If dlHeren!) LAST DATE EMPLOYEE WORKED WILL YOU CONTINUE TO PAY WAGE WORKERS' COMp? o YES -----------. --.-.------ ---..-- Street: / / LAST DAY WAGES WILL BE PAID INS Sta.te: ____ Zip: RETURNED TO WORK o YES o NO WORKERS' COMP -/-----.- 'ION # (If applic,able) IF YES, GIVE DATE RATE OF PAY o HR 0 \^.'K ~ ~ ,~E OF ACCIDENT (Street, City, Slate. Zip) __1_/_ $_________ PER o DAY 0 1/," n_ - DATE OF DEATH (If applicable) r~umber of hours per day Slreet: / / Number 01 hours per week _ .------.-.- City: ____.__ State: . ------ Zip: ___.___ AGREE WITH DESCRIPTION OF ACCIDENT? Number of days per week COUNTY OF ACCIDENT: o YES o NO NAME, ADDRESS AND TELEPHONE Any person who. knowingly and with intent to injure, defraud, or deceive any employer or employee. insurance OF PHYSICIAN OR HOSPITAL company, or self-insured program, flies a statement of claim containing any false or misleading information is guilty of a felony of the third degree. I have reviewed, understand and acknowledge the above statement. - --- -----" EMPLOYEE SIGNATURE (If available 10 sign) DATE .. . --- ~-----_.. .--.--- EMPLOYER SIGNATURE DATE AUTHORIZED BY EMPLOYER DYES ear) S iNSTEAD or TEAD OF o NO CARRIER INFORMATION o 1. o 3. Case Denied-DWC.12, Notice of Denial Attached CJ 2. Medical Only which became lost Time Case (Complete all info in #3) Lost Time Case-1st day of disability _I___.J__. Salary continued in lieu of comp? 0 YES Salary End Date_" Date First Payment Mailed _1_1_ AWW _____ __ Camp Rate.. .....""_ o T.T. 0 T,T.-80% 0 T.P. 0 I.B. 0 PT 0 Death REMARKS: CARRIER NAME, ADDRESS & TELEPHONE CARRIER CODE # EMPLOYEE'S RISK CLASS CODE EMPLOYER'S SIC CODE SUMMIT CLAIMS CENTER P.O. BOX 2928 LAKELAND, FL 33806-2928 1-800-282.7644 RVICE corrPA CODE N CARRIER FILE # I liS employer self-insured? 0 YES o NO White: Division Copy' Yellow: Carrier CoPY' Pink: Employee CoPY' Goldenrod: Employer Copy I F=!': t=nrm nwr,.1 (11/94\ BOYNTON BEACH COMMUNITY REDEVELOPMENY AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Risk Management and Insurance Pages: 1 of 2 SUBJECT: Fire and Emergency Evacuations Guidelines POLICY AND SCOPE: The purpose is to establish the Community Redevelopment Agency (CRA) procedures for the proper management of emergency situations. PROCEDURE: A. EMERGENCY EVACUATION PLAN DEFINITION OF EMERGENCY EVACUATION: An emergency evacuation is a quick, orderly and safe exit from the building. 1. An emergency evacuation will take place whenever there is a fire warning or when notification of evacuation is announced. Anyone that sees a fire or smoke is to notify their supervisor and follow emergency procedures. 2. Heavy smoke and poisonous gases collect first along the ceiling. Stay low to the floor, below the smoke at all times. If possible, cover nose and mouth with a wet cloth. 3. When approaching a closed door, use the palm of your hand and forearm to feel the lower, middle and upper parts of the door. If it is not hot, brace yourself against the door and open it slowly. If it is hot to the touch, do not open the door and seek an alternate escape route. 4. Each occupant should walk quickly and direcrly to the designated evacuation exit and proceed quickly, calmly and safely outside. 5. Employees and visiting individuals will meet in a central, pre-designated regrouping area so that all persons can be accounted for. All individuals are to remain out of the office or building until an all clear announcement has been made. SUPERVISOR RESPONSIBILITY: 1. Call the Fire Department, 911 and give the following information: T:\_IDMlN!STlL-I.TIVE\.-I.dministrative Policy M""ual2008\9 _Risk M2nagcment ""d InsUWlce\2_ Fire and Emergeocy Evacuations Guidelines.doc - 1 - a. Fire in the (location) building. b. Type and extent of fire 2. Educate all staff as to the evacuation procedures, evacuation routes and eXlts, regrouping areas, and pull stations and fIre extinguishers. 3. Initiate the Emergency Evacuation Plan when appropriate. 4. Assure that every room is searched. 5. Account for all staff and building occupants at the regrouping area. BOMB THREAT 1. Call the Police Department at 911, using a land line and provide the following information: a. Bomb threat at the Boynton Beach CRA (location) offices. b. Bomb threat message OR suspicious package/ object. c. Your name and eRA phone number. 2. If there is a suspicious package/object, do not touch it and clear the area around the suspicious package/object. 3. Evacuate the building according to evacuation plans. 4. Avoid standing in front of windows or other potentially hazardous areas. 5. Do not restrict sidewalk or streets to be used by emergency vehicles and officials T \_IDML."1ISTILr\TIVE \Administr<ltive Policy }'hnual 2008\9 _Risk IV[anagement and J:nsurance\2_ Fire and Emergency Evacuations GU1dehne~.dcl BOYNTON BEACH COMMUNITY REDEVELOPMENY AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Communications Pages: 1 of 1 SUBJECT: Telephone Service/Equipment Requests and Voice Mail System POLICY AND SCOPE: Below is the CRA procedure for Service and Equipment to the Telephones, Voice Mail System and T-1line. PROCEDURE: 1. Determine if the problem is with the phone, phone line or T-1 line. Then call the appropriate company for service. a. If problem is with the phone lines: Contact AT&T at 1-800-call-att b. If problem is with the phone equipment or voicemail system: Contact Converged Solutions at (561) 272-1211 c. If problem is with T - 1 Line: Contact the City LT. Department 2. The recording and language of our voicemail system and on-hold system is provided by On- Hold Technologies. If the language on our voicemail system needs to be updated please work with the Marketing and Special Events Assistant to contact On-Hold Technologies. He or she should be the direct contact with On-Hold Technologies. We are contracted to have 12 yearly updates to our system at no extra charge. Additional updates will require additional payment. T:\ADML'l'ISTR....\TIVE\Administrative Policy Manual2008\10_Communications\1_TeIephone Service & Equipment Requests.doc BOYNTON BEACH COMMUNITY REDEVELOPMENY AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Communications Pages: 1 of 1 SUBJECT: FTP Site POLICY AND SCOPE: Below is the eRA procedure for accessing the FTP site. This site is used for large files that are unable to be sent by regular email. PROCEDURE: 1. Go to the web site ftp:/ /www.ci/boynton-beach.fl.us/cra/ 2. It will ask for a user name and password: User Name: Password: ftp4cra cra4ptf 3. Be sure to have the person pasting their file to the site to name it for easy identification. 4. The file can then be pasted onto this web site for our access. 5. Once you have accessed the file on the Etp site save it to the appropriate place on the t drive and delete it from the ftp site. T:\_IDMINISTR..r\TIVE\.r\dministr.ltive Policy Manual 2008\1 D_Communications \2_FTP Site.doc BOYNTON BEACH COMMUNITY REDEVELOPMENY AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Travel Pages: 1 of 10 SUBJECT,: Travel Reimbursement and Payment POLICY AND SCOPE: Attached is the Travel Policy Manual which has been approved by the CRA Board for approved Travel Reimbursement and Payment Procedures. PROCEDURE: See the following policy as Attachments "A-F". T\ADMlNISTRATIVE\Administrative Policy M:mual2008\11_Travel Policy\C Travel Policy:md Procedures,doc - 1 - Attachment "y BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY TRAVEL AND ENTERTAINMENT POLICY Approved travel must adhere to the follmving guidelines in order to be paid by the Boynton Beach Community Redevelopment Agency ("CRA"i' Class A travel: Travel that exceeds twenty-four (24) hours or more away from official headquarters Class B travel: Travel that does not exceed t\\;enty-four (24) hours but overnight stay from official headquarters is required. Class C travel: Travel for short or day trips (\vithin 50 miles of official headquarters) where the traveler is not away from his official headquarters overnight. Class A and Class B Travel Authorization and Reimbursement Policy A. Prior to Travel: 1, Complete Conference & Travel Request form, Per Diem form and submit tOl approval. A description of the conference, seminar, workshop, meeting with relevant information concerning the locations, dates, costs of the travel must be attached to the Travel Request form. Per Diem rates must exclude all conference meals covered by registration fees. 2. As approved at the October 9, 2007 CRA Board meeting, all travel by eRA. Board members must be approved in advance by the eRA Board. 3. Travel expenses shall be limited to those expenses necessarily incurred by travelers 1n performance of a public purpose authorized by law to be performed for the CRA and must be within the limitations prescribed by this policy. 4. Travelers are authorized to use their CIt.A. issued credit card to pay for Class A and Class B expenses, including but not limited to: airfare, hotels, conference fees. "\11 such expenditures must be documented with the original receipt on the Travel Expense report and the Credit Card Reconciliation Form to be completed monthh (see Credit Card Policy). B. Registration: 1. Complete conference registration forms. 2. Submit conference form for payment in advance if necessary. 3. Attach a copy of the registration form and approved Conference & Travel Request form with the request for payment to Finance department. 4. Request per diem fee in advance (subtract all conference meals covered b\ registration fee). Per Diem rates are: Breakfast - $12.00, Lunch.. S15.00, Dinner $30.00. C. Upon completion of Travel: T \ ill)'H~ISTRATIVE\Admini8t!"at1ve Policy :--'Ianual 2008\11_Travel p"ltcy\ 1_ TnveI Policy ar.d Pruccd\m:s rJ., '\. 1. Complete the Travel Expense Report and/or Petty Cash Request for out-of-pocket expenses. 2. Attach a copy of the approved Conference & Travel Request form, Per Diem form, credit card receipts and other receipts to the expense report for payment or reimbursement. 3. Failure to include credit card receipts will be charged to the staff member personally. 4. Submit to Finance department for verification and approvals. Keep a copy of the travel expense report and related receipts for verification of credit card charges and inclusion of receipt copies as necessary in the monthly Credit Card Reconciliation. D. Travel Approvals and Reimbursable Expenses: 1. Authorized travel is defined in the annual CRA budget as approved by the CRA Board for non-local, local, and regional travel and entertainment expenses related to a public purpose. 2. CRA Board Member travel shall be approved by CRA Board Chair or Vice Chair and Executive Director, and must be approved in advance by the CRA Board at a regularly scheduled meeting. 3. CRA Board members travel expenses may be paid by the Executive Director under authority of Resolution No. 05-15. 4. CRA Board members shall be reimbursed for travel expenses as approved in advance by the CRA Board and upon receipt by the CRA of receipts and documented expenses. CRA Board members will only be reimbursed for actual travel. If expenses have been incurred by the CRA Board member personally, and the CRA Board member does not attend the related conference, workshop or seminar, the CRA will not reimburse such expenses. 5. Executive Director's travel shall be approved by the CRA Chair or Vice Chair. 6. CRA employee travel shall be approved by the Executive Director or Assistant Director and the CRA Chair or Vice Chair. 7. Entertainment expenses are permitted and reimbursable if serving the public purpose and as approved in the annual budget for official CRA business. Entertainment expenses, including but not limited to meals, tickets, or admission to special events, or other functions may be reimbursed subject to approval by the Executive Director or designee. The business purpose, date and location, names of attendees must be included with the reimbursement request. 8. Travel and entertainment expenses are only reimbursable with receipts and are not automatic. 9. Personal items are not reimbursable by the CRA. E. Travel Restrictions: 1. Per Diem payments shall be paid only for class A and B travel. Class C travel meals will be reimbursed according to the time travel begins and ends and at no more than the per diem payment for the reimbursable meal (see Class C travel below). 2. Mileage rate reimbursement will only apply if employee does not receive an auto allowance. Please see Finance director regarding most recent mileage rate per IRS and City. T:\.AD!vITNIS'IR..~TIVE\Administrative Policy ManualZ008\11_Travel Pohcy\1_ Travel Policy and Procedures.doc - 3 - ~ T f a spouse is to attend, aU related expenses shall be paId by the employee:, ann receipts must be separate ur noted separately on the associated recelpt(s 'rhe ( !, \\:111 not pay for any spouse or child costs associated \-vith am' conference \ 11 SIll costs will be paid by the employee separately, 4, .\ny expenses incurred over the maximum amount approved for breakfast, lunch (" dinner ",,:111 be considered a cost of the employee and not the eRA \feal rates an $12.00-breakfast, $15.00-lunch and $30.00-dinner. Class C Travel Authorization and Reimbursement Policy A, Class C local travel includes trips to meetings, seminars, errands done on behalf of the CRA and other like job related travel and expenses. B. For local conferences, workshops and seminars, the traveler must complete the Conference & Travel Reguest form and comply with all procedures for approval and reimbursement of expenses as outlined for Class A & B travel above. C. Employees shall be reimbursed for use of a personal car for CRA business at the current published IRS mileage reimbursement rate in effect when the travel took place. :\11 mileage shall be documented as to the business purpose and mileage on the Mileage Log form. D, The CRA may grant a car allowance in fLxed amounts for use of privately owned automobiles on official business in lieu of the reimbursable mileage rate. Allowances granted pursuant to this paragraph shall be reasonable and budgeted, taking into accouot the customary use of the automobile, the roads customarily traveled, and whether any ot the expenses incident to the operation, maintenance, and ownership of the automobile are paid from funds of the CRA or other public funds. Such allowance may be changed at any time. At present the Executive Director and Assistant Director receive a ell allowance. All other employees receive a mileage rate for official CRA business, E. Class C travel meals will not be reimbursed on a per diem basis; however the tra\Teler shall be reimbursed for subsistence at local conferences, seminars and \vorkshops a~, provided below. In no event will the traveler be reimbursed more than the per diem rate for the reimbursable meal. · Breakfast, when local travel begins before 6:00 a.m. and extends beyond 8:00 a.m · Lunch, when local travel begins before 11 :30 a.m. and extends beyond 2:00 p.m · Dinner, when travel begins before 6:00 p.m. and extends beyond 8:00 p.m. or \vhen travel occurs during night-time hours due to special assignment. P. No allowance shall be made for meals when travel is confmed to the city OJ' town of the official headquarters except reimbursement for entertainment expenses of official business if serving the public purpose and as approved in the annual budget for officia 1 CRA. business. Entertainment expenses, including but not limited to meals, tickets, or admission to special events, 01' other functions may be reimbursed subject to approval b\ T \"-\D~UKIS1R\TrVE \Adminl~trat1Ve Pohcy Marll.lJl2008\ 1I_Travei Pc,hcy\ t.. Tnw,.l Pulley and PrlJCedures drK the Executive Director or designee. The business purpose, date and location, names of attendees must be included with the reimbursement request. G. Employees are authorized to use their CRA issued credit card to pay for Class C expenses. All such expenditures must be documented with the original receipt on the Travel Expense Report and the monthly Credit Card Reconciliation statement. Attached Forms - . Conference & Travel Request (Attachment "B") . Per Diem Request (Attachment "C") . Travel Expense Report (Attachment "D") . Petty Cash Request (Attachment "E") . Mileage Log (Attachment "F") T:\_ID.MINISTR.-\TIVE\Administmtive Policy :Manual 2008\ 11_Travel Policy\ t_ Travel Policy and Procedures.doc - 5 - Boynton Beach Community Redevelopment Agency CONFERENCE & TRAVEL REQUEST '\ttachrnerH 'H Date of Request: 2008 Staff or CRA Board Attending: Conference Name: Conference Location: Conference Purpose: Account to Charge: 225 Dates of Travel & Attendance: to 2008 Cost of Conference: $ Cost of Travel: $ Cost of Lodging: $ Cost of Car Rental: $ Cost of Per Diem: $ ---------------- ---------------- TOTAL Approved by Executive/Assistant Director: Date Approved by ChairNice Chair: Date NOTE: CRA Board travel requests must be approved in advance at a regularly scheduled meeting of the CRA Board. Any expenses incurred over the maximum amount approved for breakfast, lunch or dinner will be considered cost of the employee and not the agency. Meal rates are $12.00 breakfast, $15.00 lunch and $30.00 dinner. Please submit a conference agenda with this request. Please subtract all meals provided for bv conference attendance fee. T:\HUMAN RESOURCES\Conferences & Travel\CONFERENCE & TRAVEL Request Form.doc Boynton Beach Community Redevelopment Agency PER DIEM REQUEST Attachment "C" Date of Request: 2008 Staff Member Name: Conference Name: Conference Location: Conference Purpose: Dates of Travel & Attendance: to 2008 Total Number of Days: Total Per Diem to be paid: Account to Charge: 225 Approved by Executive/Assistant Director: Date NOTE: Any expenses incurred over the maximum amount approved for breakfast, lunch or dinner will be considered cost of the employee and not the agency. Meal rates are $12.00 breakfast, $15.00 lunch and $30.00 dinner. Total per diem $57.00 per day. Submit a conference agenda with this request. Please subtract all meals Drovided for bv conference attendance fee. All "er diem reauests must be made at least two weeks in advance of conference date to allow Finance time to "rocess reauests. No Der diem reauests will be "rocessed outside of the normal "avment cvcle. T:\HUMAN RESOURCES\Conferences & Travel\PER DIEM Request Form.doc Attachlne Tll i 'I BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY TRAVEL EXPENSE REPORT Dote Submitted Employee Name Travel Dotes Conference Name Conference Purpose Conference Location Account to Charge 225 Expenses . Receipts must be attached for all expenses Method of Dates of Travel ..--.. "'----- ----..... -.,-- . Total 01/23/08 01/24/08 Payment "'-.-- ~w._.,____ -.--.- ---,~,_... - Hotel $ - ,,- --- -_.__._--_._~ Breakfast $ . --- ----,.-- --=t-- -- --- ......-.-.....-.".- Lunch $ - -- - ---.- --- -- -- Dinner $ . .---- --- ----.-r==~~ Registration Fee $ - ..,--- -..-. ..--- ---.. ..... -_....----- .....-, Ground Fare ---+--- $ - --- f-"--"- __.....oM. .._..".._.____.... .. Parking Fee .t----- ~.. - ..- f--_. ------ -....-. ._--_..".~-,..~...._,,- Tolls $ - f------ I Fuel $ - ,,-- I---. ---j--- .._-- ---.,,-. .---,..- .'" Plane Fare ..--t--=+-.-t.-.----- $ - -.---.." .------"..-. . " Rental Car $ - -.-+-.------ ,.-.--+.--.- --.--.- '-'----.... Books/Publications r I $ - , -_.- .- *Mileage ($.505/mile) --"---1""- $ . -- M_"~"_'_"_ ,.e..____-'_' _ Total Per Day $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 -- Total Expense $ . ,- *Mileage, Details ".--1 ---".--1 Miles Each Total Mileage J Date Way Mileage Reimb. $ . ! $ -1 " J $ - I $ ] $ I -- $ - $ - Signatures Traveler Finance Director or Finance Assistant T:\HUMAN RESOURCES\Conferences & Travel\TRAVEL EXPENSE Report Attachment "En Boynton Beach Community Redevelopment Agency Petty Cash Request Date: Name: Purpose: 200_ Amount Requested: Charge to Account: REQUESTED: Signature Date RECEIVED: Signature Date APPROVED: Signature Date T:\HUMAN RESQURCES\Conferences & Travel\Petty Cash Request Form.doc Attachment n J l' 2008 MILEAGE LOG DATE .-.---.-.--------..---------..'''.., ROUND TRIP I TOTAL @ i ~ BUSINESS PURPOSE _._ - - _~ MILES jf~~~~E --t==! ~ -=--~:=: ..-.-,-- ~,,-_.._-_.- ...... ._._~. J..----- .-.. ...., --~. ------.. J--.--.-.-.-1 .. $. .--"".....-.1 ._---------_.~ --.-.--..-.".; - --==-f--=;~ .~.___.._._._._......J $ ..--.--.-...--.-- --.-..-----.----....t-.. .-------.-...-.--"'11- . ---. ----.-.---i$-~___.__.__. i$ '.-...---..---.-.-----.i$'.-.-......--- . =T~-=~ =i~~~-- 3=.------t3..--.----.-.....- +------H.----...-.. I ------...t{.....-.--...,-... +-----t1--.--------....... ! _..i_._,___..___ TOTAL <t' ~' SIGNATURES: DATE: EMPLOYEE T:\HUMAN RESOURCES\Conferences & Travel\MILEAGE LOG BOYNTON BEACH COMMUNITY REDEVELOPMENY AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Travel Pages: 1 of 2 SUBJECT: Car Rental POLICY AND SCOPE: Below is the procedure regarding car rentals for CRA business use. PROCEDURE: 1. Contact Administrative Services Manager with dates car is needed as well as locations needed for pick up / drop off. 2. Administrative Services Manager or Administrative Assistant will make arrangements. 3. Only comprehensive and collision insurances should be taken. All others should be waived (see Attachment "G"). T:\ADMINISTRATIVElAdministrative Policy Manua12008\113ravel Policy\2_Car Rental.doc Attachment n G" Page Harris, Susan From: Harris, Susan Sent: Friday, August 17, 2007 3:35 PM To: Adelsperger, Margee; Biscuiti, Kathy; Bright. Lisa; Brooks, Vivian; Buckley, Ashley; Simon, Michael, Wiser, Alina; Zitcer, Phyllis Subject: Rental Car Insurance Team, I just spoke to our insurance agent to clarify what, if any, insurances we should take when renting cars on company business. Only take the 'comprehensive and collision' insurances. All others can be waived. Thanks, Susan Susan Harris Finance Director Boynton Beach eRA 915 South Federal Highway Boynton Beach, FL 33435 Tel: 561.137.3256/Fax: 561-737.3258 Email: harrissu@ci.boynton-beach.fl.us ";).l.-1 i!"r/_n,....(""'f BOYNTON BEACH COMMUNITY REDEVELOPMENY AGENCY, FLORIDA ADMINISTRATIVE POLICY MANUAL CHAPTER: Finance Pages: 1 of 2 SUB ]ECT: Bank Statements POLICY AND SCOPE: Below is the procedure regarding the receipt of monthly bank statements, as of April 24, 2008. PROCEDURE: Please see attached memo from Finance for procedure (Attachment "A"). T:\ADMlNISTRATIVElAdministrative Policy Manual2008\12]inance\1_Bank Statements. doc 1~~~Y~T2~ eRA . East Side-West Side-Seas'lde Renaissance eRA BOARD MEETING OF: January 13, 2009 I I Consent Agenda I I Old Business New Business Legal Other SUBJECT: Approval of Updated Procurement Policy SUMMARY: . In preparation for the implementation of the new risk assessment auditing standards during the 2008 audit, the CRA undertook a comprehensive review and revision of all administrative, human resource and financial procedures and policies. . The original procurement policy for the CRA was created in 2003 when the CRA was formed as an independent agency, and updated in February 2005 to mirror the City's. . In 2005, at the time of the last update of the CRA procurement policy, TIF revenues were $3.8 million. . Last fiscal year, TIF revenues were $9.5 and Marina revenues $1.4 million. . It is recommended that the CRA revise its Procurement Policy (attached) to update the authority level to $24,999 for the Executive Director and $25,000 or above for Board approval. This is in line with the City's current procurement policy. . This recommendation is consistent with past practices and growth in the CRA's revenues and operations. FISCAL IMPACT: N/A CRA PLAN, PROGRAM OR PROJECT: N/A RECOMMENDATIONS: Approve updated Procurement Policy. Susan Harris Finance Director T:IAGENDAS, CONSENT AGENDAS, MONTHLY REPORTSICompleted Agenda Item Request Forms by MeetinglFY 2008 - 2009 Board MeetingsI1-13-09 MeetinglProcurement Policy Revision.doc BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY PROCUREMENT POLICY REVISED January 13, 2009 Page 1 of 15 PURCHASING POLICY A. SUMMARY OF THE PURCHASING POLICY The purchase of all budgeted goods and seryices except exempt purchases must follow the quotation and approval guidelines stated below. Purchases shall not be artificially divided to circumvent the approval process. Quotation Purchase Order Amount of Purchase Process per Item Approval Level Type CRA Director* / Direct Payment / $ 1 to $1,999 No Quotation Department Credit Card Head $2,000 to $4,999 Three Verbal CRA Director* Direct Payment Quotes $5,000 to $24,999 Three Written CRA Director* Direct Payment / Quotes Purchase Order $25,000 or more Competitive CRA Board Purchase Order Bidding Process * Or assigned Designee. 1. Purchase totaling $1 to $1,999. All purchases totaling less than $2,000 per purchase may be processed with an invoice. All invoices must be forwarded directly to the CRA Director/Department Head for approval and returned to the Finance Director. Price quotes are not required for purchases under this amount. 2. Purchase totaling $2,000 to $4,999. All purchases totaling between $2,000 and $4,999 require three verbal quotes. The verbal quotes must be attached to the invoice. Invoices shall be forwarded directly to the CRA Director for approval and returned to the Finance Director for payment. 3. Purchases totaling $5,000 to $24,999. All purchases totaling between $5,000 and $24,999 require three written quotes. The written quotes must be forwarded directly to the CRA Director for review and approval. The approved quote must be submitted to the Finance Director for issuance of a purchase order. Page 2 of 15 A. SUMMARY OF THE PURCHASING POLICY (Continued) 4. Purchases over $25,000. All purchases over $25,000 require a formal competitive bid/proposal. The proposals must be approved by the CRA Board prior to the issuance of a purchase order. Page 3 of 15 B. BIDS & PROPOSALS Formal sealed bids and proposals are the most effective methods for soliciting competitive prices from vendors in government agency purchasing. This policy will establish requirements for sealed bids and proposals. POLICY: Formal Bids I Proposals All contracts of the CRA shall be awarded by competitive sealed bidding or proposals except as otherwise herein provided. Bid/Proposals of $25,000 or more shall be solicited through Request for Proposals (RFP's), Request for Qualifications (RFQs), or Request for Letters of Interest (RFLI), unless as otherwise expressly approved by CRA Board or a determination is made that it is more advantageous to utilize another competitive method for acquisition of servIces. The following items are required for competitive sealed bids and proposals, when applicable: 1. Invitation for Bids An Invitation for Bids shall be issued for each solicitation for offers equal to or exceeding the mandatory bid amount and shall include a purchase description and all terms and conditions applicable to the procurement. 2. Bid Specifications Specifications for all bids should be provided by hard copy to all proposers. 3. Insurance Insurance is required to safeguard the CRA from all claims resulting from damage to property and/ or injury to persons caused by the vendor or their actions. The successful bidder shall be required to obtain, at their own expense, all minimum insurance coverage required under the terms and conditions of all Bids, Request for Proposal (RFP), Request for Qualifications (RFQ), Contracts, Leases, and Agreements. Page 4 of 15 4. Evaluation Committee An Evaluation Committee (Committee) will be comprised of technical experts in the field, user department personnel, and any other members that may be appointed by the CRA Director or designee, to evaluate proposal responses. Members are to attend all scheduled meetings, be knowledgeable of the RFP, RFQ or RFLI requirements, personally read and evaluate all responses. A chairperson shall be chosen by the Committee to chair and facilitate the meetings; submit the Committee's findings and recommendations to the CRA Board meeting on behalf of the Committee, if required. 5. Bonds The successful bidder shall furnish a surety bond as a security for faithful performance of order(s) awarded and for payment of all persons performing labor and on furnishing materials in connection therewith. Surety of such bond should be in the amount equal to the bid. Simultaneously with the delivery of the executed contract, the successful bidder shall deliver to the CRA an executed bond or a letter of credit in the amount of 100 percent of the accepted bid as security. The attorney- in-fact that signs the bond must file a certificate and effective power of attorney with the bond. Bonds must be secured by the bidder at his own cost and generally may be classified as: Bid Bond or Bid Security-This is a document, usually in an amount of five percent of the bid, which guarantees that the bidder will enter into a contract with the CRA. Bid Bonds protect the CRA from erroneous or deliberate low bids which the vendor has no intention of honoring. Should the bidder fail to enter into a contract, the bid bond is forfeited. Bid security must be submitted with the bid and can be in the form of a certified check, cash or bond. The awarded vendor's Bid Security will be returned after receipt of a Performance Bond or a Letter of Credit in the amount of 100% of the bid, unless otherwise provided for in the Invitation to Bid. Performance/Construction Bond -This bond is a surety instrument guaranteeing that the vendor will perform according to the terms of the contract and is generally in an amount of 100% of the bid. This bond affords protection from non-performance in completion of major contracts. Should the vendor default, the bond is cashed and the CRA may then utilize the funds to complete the contract with another vendor. Performance bonds are submitted upon award of contract prior to the CRA signing agreements. Page 5 of 15 Cash Bond -In the amount of the bid or contract award. Irrevocable Letter of Credit-Sometimes used in lieu of a bond in the case of some construction projects or multi-year contracts. 6. Bid Conditions In addition to the general conditions of most formal bids some bids require special conditions that pertain specifically to the bids in question. Conditions differ from specifications in that conditions refer to requirements which must be met by the bidder before specifications of his bid are even considered. Incomplete bids or conditions not met by respondent shall disqualify the respondent's bid. No exceptions or reconsideration is allowed for disqualified bids. 7. Public Notice/Request to Advertise Public notice shall be given a minimum of fifteen (15) calendar days prior to the date set forth therein for the opening of bids. Such notice shall include publication in a newspaper of general circulation no later than fifteen (15) calendar days prior to bid opening. The notice shall state the bid title, scope of services or reason for the bid, and place, date, and time of bid opening. 8. Bid Opening Public Bid Opening-All bids received shall be publicly opened in the presence of witnesses at the place designated as stated in the Invitation for Bid. 9. Timing of Receipt The CRA must receive bids no later than the time and date identified in the Invitation for Bid. Bids received after this time shall be returned unopened to the bidder. The Secretary will stamp date and record the time received on all bids held for formal bid opening. The CRA reserves the right to consider bids that have been determined by the CRA to be received late due to mishandling by the CRA after receipt of the Bid and no award has been made. 10. Unopened Bids If all bids are not opened at the assigned receiving date and time of the bid, for any reason other than failure of the vendors to present their bids or cause their bid to be presented at the appropriate time, the bid opening may occur the following workday at the same time as originally scheduled. Page 6 of 15 11. Bid Acceptance and Bid Evaluation Bids shall be unconditionally accepted without alteration or correction, except as authorized in purchasing policies. Bids shall be evaluated based on the requirements set forth in the Invitation for Bids, which may include criteria to determine suitability for a particular purpose. Those criteria that will affect the bid price and be considered in evaluation for award, excluding cash discounts, shall be objectively measurable, such as trade discounts, transportation costs, and total or life cycle costs. The Invitation for Bids shall set forth the evaluation criteria to be used. 12. Corrections or Withdrawal of Bids Corrections or withdrawal of inadvertently erroneous bids shall be permitted up to the time of bid opening. After bid opening, no changes in bid prices or other provisions shall be permitted; provided however, the CRA Director or his designee shall have the authority to waive minor irregularities as provided by law or correct obvious calculation errors. 13. Bid Evaluation Bids should be evaluated based on the requirements set forth in the Invitation to Bid, RFP, RFQ, RFLI, which may include criteria to determine acceptability, such as inspection, testing, quality, workmanship, delivery, service, price and suitability for a particular purpose. Those criteria that will affect the bid price and be considered in evaluation for award shall be objectively measurable, such as discounts, transportation costs and total or life cycle cost, etc. The Invitation to Bid shall set forth the evaluation criteria to be used. 14. Award The contract shall be awarded to the lowest responsible bidder whose bid meets the requirements and criteria set forth in the Invitation to Bid, RFP, RFQ, RFLI. In determining "lowest responsible bidder", in addition to the bid evaluation criteria above, the following may be considered: A. Managerial capability. B. Technical acceptability and approach in meeting performance requirements. C. Reasonableness of price. D. Experience in the line of work being considered including references. E. Staff capabilities along with resumes of key individuals who will work on the project. F. A cost breakdown of the proposed price. G. The ability and skill of the bidder to perform the contract. Page 7 of 15 14. Award (Continued) H. Whether the bidder can perform the contract or provide the supplies/services as required without delay or interruption within the time specified. I. The quality of performances of previous contracts or services with the CRA or other entities. 15. Tie Bids If two or more bidders are tied, the tie may be broken and the successful vendor selected by the following criteria presented in order of importance. . Quality of the items or services bid if such quality is ascertainable. . Delivery time if provided in the bid by the bidders. . Location of the vendor with the following award preferences: CRA Vendor City of Boynton Beach vendor Palm Beach County vendor State of Florida vendor If the above criteria are impossible to determine with any reasonableness or do not resolve the issue, the award will be given to that vendor whose bid was received first as indicated by the date stamp and time recorded on the envelope containing the bid. 16. Contract Extension All invitations for bids for open-end contracts shall, when practical, provide for an extension of the contract for a time period up to the amount of the original time period, upon mutual consent of the buyer and seller and written analysis by the CRA Executive Director that renewal is in the best interest of the CRA. Any contract extension of $25,000 or less will require the approval of the CRA Executive Director. Contract extensions above $25,000 will require approval of the CRA Board. 17. Cancellation of Requests A request for proposals, invitation for bids or request for qualifications may be canceled and/ or any or all responses may be rejected in whole or in part when it is in the best interest of the CRA. The reasons therefore shall be made part of the CRA file. Page 8 of 15 Exclusions from the Competitive Process: A. Emergency Purchases The CRA Director may procure goods and services where the cost does not exceed twenty five thousand ($25,000) when there exists a clear and present threat to public health, property, welfare, safety or other substantial loss to the CRA, provided however, that such emergency procurement shall be made with such competition as is practical under the circumstances. B. Expert Consultants Expert consultants means individual(s) acting as independent contractors for professional services to the CRA retained by the CRA Director on a contract basis with a specific term for the purpose of performing specialized work that require knowledge, skills and training not otherwise available to the CRA. The procurement of an expert consultant does not lend itself to normal competitive bidding. C. Sole Source Purchases Procurement may be awarded for a supply, service or construction item without competition when it is determined that there is only one source available such as repairs or additions from the original equipment manufacturer, only supplier in the area or for service, franchised or licensed distributor or service, patented or proprietary item, or by negotiation where the procurement by competitive procedures is not feasible nor practical. Any vendor identified by staff as a sole source vendor must be supported in writing. D. State Contracts State Contract is the State of Florida Purchasing Division's formal bidding process and award of various equipment and services contracts extended for use to all political subdivisions and/ or entities. E. Piggy Backing "Piggy-backing" onto contracts by other governmental agencies (i.e., city, county, school board, state) is encouraged when it is determined that this method of procurement will provide the best product/service at the best price without compromising specifications or quality desired. This method of procurement should be considered prior to using any other method set forth regardless of quantity or monetary value of the procurement. Supporting documents will be submitted with requisition to the Finance Director (for example-contract number and information from the state of Florida's website). The contract must be an open active contract. Page 9 of 15 F. City of Boynton Beach Contracts with The City of Boynton Beach for direct services. G. Other Purchases Certain purchases are exempt from the formal purchasing procedures. These include purchases and expenses where the competitive process would be unavailable, or where purchases or expenses are routine operational expenses, unique in nature and/ or under contract, or approved by the CRA Board such as: Appraisers Real Property Purchases Title Insurance Rental Expense Membership Fees Subscriptions Utility Services Services, as it relates to special events Promotion, Marketing and Entertainment Testing or Instructional Material Real Estate Taxes Speaker Expense Insurance Payroll Page 10 of 15 CRA PURCHASING POLICY - CHANGE ORDERS A change order is a written modification to a contract or purchase. Purchase orders may be amended to correct errors, omissions, discrepancies, acceptable overruns, freight costs or amendments to contracts. Change orders may entail additional cost, revision of scope or quantities or an extension of time to complete the contract. POLICY: Change orders less than $25,000 require CRA Executive Director approval; Change orders $25,000 or greater require CRA Board approval. A change order will be issued prior to payment of InVOICe for the following purposes: 1. Change orders for all construction and non-construction purchases, which were initially awarded by the CRA Board, will be approved as follows: Change orders will only be presented to CRA Board for approval when Cumulative change orders for the awarded item have reached $25,000 or more. When presented to the CRA Board all cumulative changes that make up the cumulative change order amount of $25,000 or more will be presented as part of the approval. If additional change orders are required, after CRA Board approval, the same process will be used for the next cumulative change orders. An original of the change order and a purchase requisition requesting the change order shall be remitted to the CRA Executive Director for approval. The CRA Finance Director will make the necessary change(s) to the purchase order for the CRA records. Purchase orders over $25,000 will have a tolerance of 10 percent of the purchase order amount. Anything exceeding 10% would require a new purchase order. The invoices for these purchase orders can be processed without preparing a change order. Invoices, which exceed the tolerance limit, will require the CRA Executive Director to review and approve the discrepancy. The change order request shall justify the cause for variance. All change orders are to be reviewed and processed to change the purchase order amount. Change orders will be distributed to the holders of the original purchase order. Page 11 of 15 CRA PURCHASING POLICY - ARCHITECTURAL OR ENGINEERING PROFESSIONAL SERVICES PURPOSE: To provide a policy that fully complies with the requirements of the Consultants Competitive Negotiation Act (CCNA), Section 287.055, Florida Statutes, when the combined amount for the services is $25,000 or more. DEFINITION: Professional services mean any services where the CRA is obtaining advice, instruction or specialized work from an individual specifically qualified in a particular area. This would include architectural, professional engineering or registered land surveying and mapping services. Professional services may include a report or written advice which may be lengthy; however, the main thrust of the service is not considered labor but the exercise of intellectual ability. The procurement of professional services does not lend itself to normal competitive bidding and pricing competition alone. These services may be procured by a Request for Letter of Interest, Request for Proposal or Request for Qualification and selected through competitive selection and negotiation. POLICY: The CRA requires a competitive bid process for professional services when the cost of the service exceeds: 1. $25,000 or more for planning or study activity. 2. $25,000 or more for basic construction costs. The processes to contract for professional services are: 1. Public Announcement/Request to Advertise -At such time when professional services are deemed necessary by the CRA, the CRA Executive Director shall provide and request a legal advertisement to be published in a newspaper of general circulation within Palm Beach County, Miami Dade or Broward county setting forth a general description of the project requiring professional services and providing instructions on how interested firms may apply for consideration by the eRA. In addition, a notification of the project will be sent to certified firms which express an interest. Page 12 of 15 2. Competitive Selection -There shall be a Competitive Selection Committee (CSC), which shall be appointed by the CRA Executive Director and may be composed of the following representatives: A. Representative(s) of the CRA Board. B. Citizen appointed by the CRA Board based on their qualifications and experience in the area of discipline sought. C. Other representative(s) that may be deemed appropriate by the CRA Executive Director or CRA Board. The responsibility of the CSC committee will be to: · Select a minimum of three qualified and reputable firms · Hold discussions with selected firms. Such discussion may encompass formal presentations by each firm. The requirements of presentations or discussion will be the same for each selected firm and must include qualifications of firm, approach of the project, and ability to furnish servIces. · Rank the firms based on qualifications, ability of personnel, past performance, location, recent, current and projected workloads. · After selection of the firm that will best serve the interest of the CRA, the selection committee will bring their recommendation before the CRA Board to authorize the priority of the firms for negotiation of a contract. 3. Competitive Negotiation -The CSC committee, designee or CRA Executive Director or designee will attempt to negotiate a contract with the highest ranked firm to perform the services at a compensation that the CSC determines to be fair and reasonable. If a satisfactory contract with the firm obtaining the highest ranking is unable to be negotiated, negotiations with that firm shall be formally terminated. Negotiations will be undertaken with the second ranked firm. If these negotiations also prove unsatisfactory, negotiations shall again be terminated and negotiations with each firm in accordance with their ranking by the committee will begin until an agreement is reached or the available firms are exhausted. When Staff has reached an impasse in the negotiations, staff will notify the CRA Board. The CRA Board may choose to have a CRA Board Member or designee try to negotiate a contract with the list of potential firms. When the firms are exhausted and all negotiations have failed a new solicitation for proposals must be initiated for any lump-sum or cost-plus-a-fixed-fee professional service contract over the threshold amount provided in Section 287.017 (5) (a), Florida. Page 13 of 15 CRA PURCHASING POLICY - CONSTRUCTION CONTRACTS PURPOSE: Due to the complexity of construction projects and the cost involved these contracts warrant special conditions. POLICY: In general, contracts for construction of major CRA projects are obtained through the Formal (Sealed) Bid process. Construction projects under $25,000 in cost may be procured by written quotations. Sealed bids are required for all construction projects over $25,000 in costs and the following special conditions will apply: 1. Announcement of Bids. To assure the greatest degree of competition, all of the following shall be used to announce the bids: A. Newspaper Legal Ads. Legal ads are an excellent method of attracting interested bidders, while also dispelling any criticism of bids only going to favored contractors. For this reason, they are required to be posted in a newspaper of general circulation in Palm Beach County, Broward County or Miami/Dade County. Legal ads should briefly state the name of the project, location, nature of work required, contact person name and telephone number, bid receiving date and time, cost of plans and location where bid specifications may be obtained. The ads should be placed a minimum of fifteen (15) calendar days prior to the bid receiving date. Advertisements may also be listed in the Dodge Reports, and other construction journals. B. Mailing to Interested Contractors (Bidders List). The prImary contacts for construction bids are those firms that have previously done work for the CRA or other governmental entities and have expressed a desire to bid. A list of these firms shall be assembled from the records of the CRA and other governmental entities. Additionally, the CRA Director and the CRA Board may contribute firms that are listed in various reference sources, including but not limited to: Thomas Register, Municipal Index, Yellow Pages, Contractor's Blue Book, Palm Beach County Minority Business Directory, etc or from personal experience. Generally, only an "Invitation to Bid" letter or a "Notice to Contractor" should be mailed to firms on the Contractors Bid list. Page 14 of 15 2. Pre-Bid Conference. A pre-bid conference may be held for all construction projects. Attendance at this conference is not mandatory, but highly recommended for all bidders. 3. Bid Opening. No bids will be accepted after the receiving date and time. However, the CRA reserves the right to consider any bids received late due to mishandling by the CRA. The CRA Executive Director or designee is in charge of the bid opening and shall fully record the various bids for the construction project. Anyone requesting to review bids will be requested to wait until all bids received are finally tabulated and a staff person is available to monitor the bid package review process. 4. Bid Review and Award. Bid review is by the CRA approved selection committee. CRA staff will make copies of the tabulation sheets and have all bids available for their review. In some cases, review of bids may be performed by a contracted Architectural/Engineering firm. The contract award should generally be made to the lowest most responsive, responsible bidder meeting specifications. If this is not the case, a thorough explanation should accompany the formal evaluation. Bid award shall be made by the CRA Board. 5. Formal Construction Contract. Due to the complex nature and duration of construction projects, a formal construction contract is prepared and copies are issued to all parties. These contracts are prepared by either a hired Architectural/Engineering firm, or the CRA Attorney's Office. The formal construction contract is based on the bid document and plans. The contractor shall provide all required licensing, insurance, and bond documentation to the CRA along with the signed contracts. All contracts must be reviewed and approved by the CRA Attorney as to form and legality before the contract is signed. Page 15 of 15 1~~ctY~T2~ eRA . East Side-West Side-Seaside Renaolssance eRA BOARD MEETING OF: January 13,2009 I X I Consent Agenda I I Old Business I I New Business Legal Other SUBJECT: Approval of Supporting the Palm Beach County Business Development Board's 2009 Familiarization Program (F AM) SUMMARY: In 2007, the CRA had a Business Development Board (BDB) membership at a cost of $1000. During the 2008 budget cycle, the CRA Board agreed to split the cost of a corporate membership at a price of $5,000 ($2,500 paid by both the City and CRA). Splitting the cost ofthe membership allowed an opportunity for the City Manager and two Commissioners to participate in the BDB activities. Since the membership to the BDB is shared by the City and CRA at 50% and this event provides value to the City of Boynton Beach, it would make sense to split the cost ofthe sponsorship. The total cost for a FAM Program corporate sponsorship is $2,000. FISCAL IMPACT: $1,000 from contingency line item 01-51990-200 CRA PLAN, PROGRAM OR PROJECT: Community Sponsorship - Resolution 06-02 RECOMMENDATIONS: Staff recommends sponsoring this event at $1,000 and requests the CRA Board recommend the City Commission contribute the other $1,000. T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by Meeting\FY 2008 - 2009 Board Meetings\l- 13-09 Meeting\FAM Tour Support. doc lel!." Bright, Lisa From: Glenn Jergensen [GlennJ@boyntonbeach.org] Sent: Wednesday, December 31, 2008 1:42 PM To: Bright, Lisa Subject: RE: FAM 2009 Sponsors Lisa, $2000.00 and here is the package. Thanks Glenn Corporate Sponsor $2.000 cost Corporate Sponsor benefits: . One seat at all FAM events February 11-13, 2009 (includes 2 reception/dinner functions, 2 breakfast functions, & high tech industry tour) . Company name and logo on Sponsor page in FAM brochure . Company collateral/marketing display at opening reception and dinner on February 11 th . Recognition in BOB E-newsletter as Corporate Sponsor of FAM Program Glenn Jergensen President! CEO The Greater Boynton Beach Chamber of Commerce 1880 N. Congress Ave. Suite 106 Boynton Beach, FL 33426 www.BoyntonBeach.org Direct: 1-561-732-9501 From: Bright, Lisa [mailto:BrightL@bbfl.us] Sent: Wednesday, December 31, 2008 12:40 PM To: Glenn Jergensen; Jim Williams; Bobby D'Angelo Cc: ghines@bdb.org; Jim@culinary-solutions.net Subject: RE: FAM 2009 Sponsors Glenn, What is the cost for sponsorship? Happy New Year, Lisa Lisa Bright Executive Director Boynton Beach eRA 915 S. Federal Highway Boynton Beach, FL 33435 561-737-3256 brightl@ci.boynton-beach.fl.us From: Glenn Jergensen [mailto:GlennJ@boyntonbeach.org] Page 2 of3 Sent: Wednesday, December 31, 2008 8:54 AM To: Jim Williams; Bobby D'Angelo; Bright, Lisa Cc: ghines@bdb.org; Jim@culinary-solutions.net SI"-~ect: FW: FAM 2009 Sponsors Jim, Bobby, Lisa, Were any of you interested in being a Corporate Sponsor for the Site Consultant Tour in conjunction with the BDB? Corporate Sponsor $2.000 cost - Corporate Sponsor benefits: . One seat at all FAM events February 11-13, 2009 (includes 2 reception/dinner functions, 2 breakfast functions, & high tech industry tour) . Company name and logo on Sponsor page in FAM brochure . Company collateral/marketing display at opening reception and dinner on February 11th . Recognition in BOB E-newsletter as Corporate Sponsor of FAM Program Please contact myself or Gary Hines at the BDB if you can. Happy New Year. Glenn Glenn Jergensen President! CEO The Greater Boynton Beach Chqmber of Commerce 1 N. Congress Ave. Suite 106 Boynton Beach, FL 33426 ww..w..,BQyntQulleaGll,QJ:g Direct: 1-561-732-9501 From: Gary Hines [mailto:ghines@bdb.org] Sent: Tuesday, December 30,20082:05 PM To: Bill Wood; Bob Christie; Francisco Perez-Azua; Gary Hines; Boynton Chamber; Jeff Perlman; Jim Guilbeault; Kelly Smallridge; Troy McLellan Subject: FAM 2009 Sponsors Greetings team, Below is an update on where we stand on sponsorship of the 2009 International Site Consultant - Palm Beach County Familiarization Program (FAM 2009). First is a list of FAM sponsors confirmed to date. We still need six (6) corporate sponsors in order to cover costs of the FAM program. I'm asking the three Chambers to each recruit two additional corporate sponsors. Corporate sponsor cost and benefits are listed below. You are welcome to refer sponsor prospects to me if they need more details on the FAM program. Grand Sponsor (1 required) The Pugliese Company Hospitality Sponsor (1 reauired) Boca Raton Resort & Club Corporate Sponsors (9 required) First Industrial Realty Trust / First Park South Florida Florida Power & Light The Weitz Company Corporate Sponsor $2,000 cost 01/0212009 i V~ GQJQQ[~te Sponsor benefits: . One seat at all FAM events February 11-13, 2009 (includes 2 reception/dinner functions. 2 breakfast functions. & high teell industry tour) . Company name and logo on Sponsor page in FAM brochure . Company collateral/marketing display at opening reception and dinner on February 11 th . Recognition in BOB E-newsletter as Corporate Sponsor of FAM Program Regards and best wishes for a Happy & Healthy New Year. Gary Gary Hines Senior Vice President, Administration Business Development Board of Palm Beach County, Inc. 310 Evernia Street West Palm Beach, FL 33401 561.835.1008 ghines@bdb.org 01 !O?n009 RESOLUTION NO. 06 - 02 A RESOLUTION OF THE BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, TO SET THE LEVEL AND METHOD OF COMMUNITY SPONSORSHIP AMOUNTS THE CRA BOARD WILL ALLOW BEGINNING NOVEMBER 01, 2006; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, CRA Board wishes to set guidelines for any request for community sponsorship funded by the Agency; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY: SECTION 1. eRA authorizes the Executive Director to forward all requests for community sponsorship to the Board prior to disbursement, and that all approved requests adhere to the guidelines in Section 2. SECTION 2. All such requests deliver a program and/or service within the CRA district. Programs, services and events must be related to the mission and principles ofthe CRA in that they promote economic development within the eRA district and/or benefit residents of the Boynton Beach eRA. Programs and services benefit the community redevelopment area. The Board may choose to alter these parameters at their discretion. SECTION 2a. The maximum amount of any charitable sponsorship is $1,000 per agency or organization during any calendar year. SECTION 3. If any clause, section, other part or application of this Resolution is held by any court of competent jurisdiction to be unconstitutional or invalid, in part or application, it shall not affect the validity ofthe remaining portions or applications of this Resolution. SECTION 4. EFFECTIVE DATE This resolution shall become effective immediately upon its passage and adoption. Board Member NOREM offered the foregoing Resolution and moved its adoption. The motion was seconded by Board Member MYaTT and upon being put to a vote, the vote was as follows: 1 HENDERSON TILLMAN, ehair STORMET NOREM, Vice-ehair JEANNE HEA VILIN, Board Member GUARN SIMMS, Board Member LANeE eHANEY, Board Member MARIE HORENBURGER, Board Member STEVE MYOTT, Board Member The ehair Person thereupon declared this Resolution approved and adopted by the eRA Board of the Boynton Beach eommunity Redevelopment Agency, Boynton Beach, Florida, this _14h _ day of November, 2006. By: Henderson Tillman, Chair Person BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY Legal in form and valid if enacted: Kenneth Spillias CRA Attorney 2 ~\'F- ;;~f ~~~<!Y~T2~IC RA iIi East Side-West S,de- Seaside Renaissance eRA BOARD MEETING OF: December 13,2008 I X I Consent Agenda I I Old Business New Business Legal Other SUBJECT: Approval of the Listing Agreement with the Prakas Group for the Sale of the Alcoholic Beverage License Owned by the CRA. SUMMARY: On July 22, 2008, the CRA purchased the adult entertainment and liquor licenses from the owners of Platinum Gold at 3675 S. Federal Highway. The intent of the purchase was to remove a nuisance business and to prevent a similar business from reopening on the same site. The CRA has until June 2009 to either sell or activate the liquor license. At the regular meeting held on October 14, 2008, the CRA Board approved using the brokerage services of the Prakas Group for the sale of the license. The terms of the Listing Agreement (see attached) have been prepared and approved by CRA Legal Counsel and agreed to by Tom Prakas, Broker of the Prakas Group. The listing price is $110,000 for the listing term expiring on June 1,2009. FISCAL IMPACT: The CRA may realize $90,000 - $110,000 for the license less the broker fee. CRA PLAN, PROGRAM OR PROJECT: Federal Highway Corridor Community Redevelopment Plan RECOMMENDATIONS: Staff recommends approval of the Listing Agreement selecting the Prakas. Group at a listing price of $110,000 and for the listing term expiring on June 1, 2009. ~~~~~ Michael Simon Development Manager ~ T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Fonus by Meeting\FY 2008 - 2009 Board Meetings\l- 13-09 Meeting\Prakas Group listing agnnnt for liquor license sale. doc PRAKAS BROKERS 705 E. PALMETTO PARK ROAD BOCA RATON, FLORIDA 33432 (561) 368-0003 EXCLUSIVE LISTING AGREEMENT FOR SALE OF A RETAIL ALCOHOLIC BEVERAGE LICENSE THIS AGREEMENT GIVES BOCA BROKERS, INC. d/b/a PRAKAS BROKERS ("THE BROKER") AN EXCLUSIVE RIGHT TO OFFER FOR SALE FLORIDA RETAIL ALCOHOLIC BEVERAGE LICENSE NUMBER BEV60071 1 ("THE LICENSE"). UNDER THIS EXCLUSIVE RIGHT TO SELL THE LICENSE, THE BROKER EARNS HIS OR HER COMMISSION ON THE CONSUMMATION OF A SALE PROCURED BY THE BROKER PURSUANT TO THE TERMS RECITED HEREIN. In consideration of the services of the Broker, the Boynton Beach Community Redevelopment Agency ("CRA") exclusively lists the license with the Broker for a period of five (5) months, commencing on and terminating at midnight on .______ _______ pursuant to the following terms: Broker is given the sole and exclusive right to sell or lease the License on the terms and conditions contained herein. Upon full execution of a contract for sale and purchase of the License, all rights and obligations of this agreement will automatically extend through the date of the actual closing of the sales contract In consideration of the effolis of PRAKAS BROKERS (Broker) in securing an offer to purchase the License, the CRA agrees to pay a professional service fee to the Broker as follows: Broker's Sale Commission Upon the consummation of a sale of the License at the Selling Price on the terms stated above or at any other price and on other terms accepted by the CRA, to a purchaser presented to the eRA or found by Broker, the CRA agrees to pay Broker a sales commission of 10% of the Selling Price. The sales commission shall be due and payable at the consummation of the sale transaction, except otherwise provided in this agreement. Minimum commission payable to Broker is $10,000. As used herein, "Selling Price" shall mean the gross consideration to be paid to the CRA for the sale of the License. The CRA and the Broker agree that the License shall be offered at an initial Selling Price of $110,000.00. Broker shall not be entitled to receive a sales commission, or any other funds from the CRA, unless and until the sale and transfer of the License is approved through the normal business practices of the Florida Department of Business and Professional Regulation Division of Alcoholic Beverages and Tobacco. Page 1 of 4 Commission Rights All commission amounts indicated herein shall be paid to Broker in the event of the sale of the License, as approved by the Florida Department of Business and Professional Regulation Division of Alcoholic Beverages and Tobacco and by a majority ofthe CRA Board. Marketable Title The CRA represents that it is lawfully in possession of the License and has the power and authority to make a sale. The eRA represents that it believes the title to the License is marketable and the License can be sold or leased by the eRA on the terms and conditions recited above. eRA Obligations The CRA agrees to the following: (a) The CRA will make all legally required disclosures, including all facts that materially affect the License's value and are not readily observable or known by a potential purchaser. (b) The eRA will immediately inform Broker of any material facts that arise after execution ofthis agreement. Broker's Duties In consideration of the foregoing listing and agreement, Broker agrees to the following: (a) to use diligence in obtaining a purchaser, however, this agreement does not guarantee the sale of the License. (b) to present all offers and counter-offers to the Executive Director of the CRA within twenty-four (24) hours of receipt by the Broker, regardless of whether the License is subject to a contract of sale. (c) to provide potential purchasers with a copy of the Florida Department of Business and Professional Regulation's form DBPR ABT - 6035, Application for Transfer of Ownership of an Alcoholic Beverage License. (d) to verify that potential purchasers who submit offers are eligible to obtain an alcoholic beverages license pursuant to the rules and regulations of the Florida Department of Business and Professional Regulation Division of Alcoholic Beverages and Tobacco. Page 2 of 4 Advertising & Marketing Broker shall advertise the License for sale in media such as newspapers. trade periodicals, the Internet, or any other appropriate media that Broker may deem effective. Broker may prepare and distribute brochures if Broker deems the License suitable for this type of promotion. All advertisements shall include information which informs potential purchasers that purchase and ownership of the alcoholic beverages license is subject to approval by the Florida Department of Business and Professional Regulation Division of Alcoholic Beverages and Tobacco. Broker may provide objective comparative market analysis information to potential purchasers. Termination The CRA may terminate this Agreement at any time and for any reason, so long as that thirty (30) calendar days advance notice is provided to the Broker. Such notice shall be in writing and must be mailed to the Broker at 705 East Palmetto Park Rd., Boca Raton, FL 33432, or faxed to the Broker at 561-368-4303. For purposes of this paragraph, the thirty-day period shall commence on the date the CRA's written notice is signed. If any and all prospective purchasers that the Broker may have brought and evidenced by registering them with the CRA enter into a contract resulting in a sale, the Broker will be paid a filll commission. Discrimination Discrimination in the selection of potential purchaser because of race, creed, religion, handicap, color, national origin, sex, marital status or any other factor protected by federal. state or local law is prohibited. Successors and Assigns This agreement shall be binding on the successors and assigns of the CRA and Broker. CRA Warranties The CRA warrants that it is a corporation and has authorized this exclusive-listing agreement by and through an authorized agent or if unincorporated, the eRA has authority to act for all parties in interest. Escrow Requirements All money paid on account of the real estate transaction to Broker, regardless of the payment form shall be retained by Broker, the CRA's attorney, or a third party as agreed upon by the applicable parties in an escrow or trust account for the benefit of the parties to the transaction. Page 3 of 4 Receipt of eopy The CRA acknowledges receipt of a copy of this exclusive listing agreement and accepts the terms and conditions contained in this agreement. Any modifications to this agreement shall be in writing and signed by both parties. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be original, and all of which together shall constitute one and the same Agreement. A signature delivered by facsimile shall be deemed to be an original signature and shall be effective upon receipt thereof by the other party. Applicable Law; Dispute Resolution This agreement will be construed in accordance with Florida law. All claims, controversies and other matters in question between the parties arising out of or relating to this agreement or an alleged breach hereof may be decided by non-binding arbitration in accordance with the Florida Arbitration Code, Chapter 682 of the Florida Statutes. Each party shall select an arbitrator and the two (2) arbitrators shall select a third arbitrator. The three (3) arbitrators chosen shall hear and detenmne the matter. This provision to arbitrate shall be enforceable under the Florida Arbitrator Code. Any judgment entered by the arbitrators may be entered by a Court having proper jurisdiction. The prevailing party shall be entitled to recover all fees and costs incurred in connection with the arbitrator and the enforcement of any such decision, including reasonable attorney's fees. Venue for all claims, controversies, or disputes between the parties arising out of or relating to this agreement, or an alleged breach hereof, shall be in Palm Beach County, Florida. For any dispute between the parties which results in the filing of a civil complaint, the prevailing party shall be entitled to recover all fees and costs incurred in connection with the litigation, including but not limited to reasonable attorney's fees. IN WITNESS WHEREOF, the parties have signed this Agreement this_, day of 200 WITNESS: CRA: By: AGENT: BROKER: Boca Brokers, Inc. d/b/a Prakas Brokers By: Athan C. "Tom" Prakas, President H:\2007\070473 BBCRA\Sale of Alcoholic Beverages License\Final Copy of Listing Agreement with Prakas Brothers.doc Page 4 of4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 was to leave the street alone and they extended it east to Federal Highway and to the bridge as they were waiting for that part of the downtown to be completed, In this instance, and from an aesthetic point of view, it made sense to do so, but they did not know the current version of the development plans approved for the Arches. They included some infrastructure in the 4th Street right-of-way, which was minimally invasive, but there still was work that had to be done. Aesthetically, it made sense to finish the project. The first portion of this project to bring the utilities to 2nd Avenue would allow for sufficient utility capacity for that whole area. Mr. Bressner preferred the eRA pay for the project on the tail end. They would have to use General Fund dollars to pay for it. The amount was $300,000 and the work would have to be done in the next fiscal year (2009/10.) He recognized the CRA was not in a position to pay the original $800,000 until that time. Susan Harris, Finance Director, explained the $823,000 allocated for the project in 2010, was moved forward to this year for the MlK Project. The Board only has $423,000 available in the fund balance and they would need to come up with another $400,000 in this year's or next year's budget. She explained in the next two years they would be in a deficit position due to their projects. Chair Taylor polled the members about splitting the $300,000. Vice Chair Rodriguez was in favor of the proposal to extend the project. Mr. Hay was in favor of splitting the $300,000 and extending the project. Ms. Ross was also in agreement. Mr. Weiland left the dais at 9:27 p.m. Motion Vice Chair Rodriguez moved to approve Option 8 and the Community Redevelopment Agency encumber $150,000 or half the cost. Mr. Weiland returned to the dais at 9:28 p.m. Motion Vice Chair Rodriguez moved to approve Option 4, plus Option 8 as an attachment, less the lights and the Community Redevelopment Agency encumber half the total cost for this project. Mr. Hay seconded the motion that passed 4-1 (Mr. Weiland dissenting.) G. Consideration of Proceeding with Sale of liquor license Owned by the CRA Ms. Brooks presented the item and explained they purchased the first right of refusal to prevent a future adult use and they purchased the liquor license and wanted to put it on 21 ~ ~~Y~Te~CRA . East Side-West Side-Seaside Renaissance eRA BOARD MEETING OF: January 13,2009 I X I Consent Agenda I I Old Business New Business Legal Other SUBJECT: Approval of Piggy-backing on Agreement between Delray Beach CRA and PMG Associates SUMMARY: At the December 8, 2008 CRA Board meeting, the Board voted to have the fmances of Auburn Development analyzed for the purposes of entering into a Master Development Agreement between the City, CRA and Auburn. The Board also indicated the willingness to test the Agency's fmancial capacity to fund the project in the proposed timeline and to carry debt. Please see attached highlighted minutes from the December 9,2008 meeting (Tab 1). In order to undertake the fmancial analysis in the most expedient manner, it was determined that the Agency should piggy-back on an existing contract for the same type of service rather than issue a Request for Proposal. The Delray Beach CRA has an open Agreement between their Agency and PMG Associates. The scope of work in the Agreement includes general project development, financial and real estate management analysis services and other consulting services which address real estate development and/or land planning projects. Please see attached Agreement (Tab 2). PMG Associates were requested to provide a quote for the attached scope of work (Tab 3) for the Agency. PMG Associates provided a cost to undertake the scope of work (Tab 4). The cost to the Agency would be $14,650 if the Board approves piggy-backing on the Delray CRA Agreement. FISCAL IMPACT: $14,650 to come from contingency (51990/200). CRA PLAN, PROGRAM OR PROJECT: Heart of Boynton Community Redevelopment Plan RECOMMENDA TIONS: Piggy-back on Delray Beach CRA's Agreement with PMG Associates to conduct a financial review of Auburn Development, determine the level of public subsidy necessary, analyze the Agency's projected TIP revenue over the term ofthe Master Development Agreement, provide an opinion on the Agency's bonding capacity and estimate the TIP revenue to be generated by the proposed development ~~ Assistant Director T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by Meeting\FY 2008 - 2009 Board Meetings\ 1-13-09 Meeting\PMG Financial Analysis of Auburn .doc Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9,2008 needed for the review, another three months might be required to prepare a Request for Proposals (RFP) and select a company. Timing was important to Auburn because they wanted to have the grocery store and retail center completed before March 2010 in order to obtain a tax credit. They would have the confidence to move forward if an agreement was approved subject to a financial review. Chair Taylor pointed out the current financial information was more than two years old and he would not recommended an agreement be signed without a third-party financial review. Commissioner Ross requested clarification of the two meetings to be held on December 16th. Attorney Cherof explained it was proposed a contemporaneous review of the final draft of the agreement be held by the Commission and CRA Board. Chair Taylor believed the meetings might be too much for one night. Commissioner Ross agreed. . Attorney Cherof pointed out it would be unlikely the City Commission would unilaterally consider the Auburn agreement, as the CRA bore the bulk of the responsibility in its relationship with Auburn. Chair Taylor suggested, rather than having the CRA meeting prior to the Commission meeting on December 16, 2008, the issue be addressed at the regular CRA Board meeting on January 16, 2008. The Board concurred. Mr. Beguiristain noted there was no timeline challenge to address the agreement in January. Elizabeth Jenkins, 711 NW 1st Street, suggested the board give thought to the Agreement. Wee Chair Rodriguez left the dais at 8:55 p.m. and returned at 8:58 p.m. ltfe\i88a18 ~~.ftl.....~I_Atjt,S.w." '&J_."~~.41r11 1I___ghtack ..........!...w...U_~.""I:mf:l'mllitl",.~..t.J...~*.... J JIf If....-m~QA. .It ~A.d...".........ft_--4.!..""''''''''''''."kUli!Q-~ ".Jlm" t:W\t',~T.,.,'MFr,,"M~~~lQlM"""IlJllllr.Rt. Motion ~,..(DCiM.k"'.!~~~ the motion that puseQ lMlaAimousl,. :::t==J.llIllr-;.....r...i!!ir__.."iniQ.'iW!~.~~~.ril~ '\ .' ..iM,...........I!._JJJJ1!1Jl "M~~._~~.fur1e,.\ti:I trI~'j!~;,'..1l ill a.' It was questioned whether the bond issues and procedures had been resolved. Attorney Cherof noted the bond counsel advised that 19 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 with respect to the financing of the garage element, he would like to see the Commission test that process through a bond validation proceeding. With the reversal of the Strand decision, Ms. Bright inquired whether the Board still wished to proceed through a bond validation proceeding. It was agreed the proceeding should go forward and be contingent upon approval of the agreement. Attorney Cherof explained a bond validation proceeding would not be conducted until such time as attempts were made to float a bond. F. CRA Staffing Plan (Tabled to the first meeting in January 2009) G. CRA Website Ms. Bright noted the item had been added to the agenda for the November 51 2008 meeting. Vice Chair Rodriguez observed a link on the eRA websitel contending City and staff resources were being used to sell paintings. Ms. Bright noted Vice Chair Rodriguez had accused her of gross misconduct. Ms. Bright was directed to respond to the allegations, and she provided an analysis of her activities relating to the history of the CRA and Public Art, as well as her relationship with Katie Barr. Vice Chair Rodriguez indicated he had been perusing the website and observed a link to "Fine Caribbean Art/I which included a photograph of the Director of Marketing/s sister as the painter on the site. He contended the painter was also the best friend of the Executive Director. He noted the Executive Director previously commented she was not aware of the links. Vice Chair Rodriguez believed it was a conflict of interest to have the sister of the Marketing Director and the Executive Directorls friend as the only vendor linked to the CRA website. If there were opportunities for other vendorsl he would have no objection. He requested the Executive Director acknowledge the potential conflict, correct it and move forward. Chair Taylor did not believe a conflict existed or that art was sold through the CRA. Art exhibiting varying cultures in the community was displayed at the CRA offices as well Commission Chambers and other City facilities as part of an Arts program undertaken by the City several years ago. Ms. Bright noted Ordinance No. 06-085 was adopted at the November 21, 2006 City Commission meeting. The ordinance provided for voting abstentions by Board members with conflicts of interest and disclosure of conflicts of interest by Board members. At the May 20, 2008 Commission Meetingl Vice Chair Rodriguez applied for a hardship variance for his residence at 947 Isles Road. Staff found no basis for a hardship and recommended a denial. She contended Vice Mayor Rodriguez did not step down from the dais at that time and as such, he did not follow the provisions of the ordinance. 20 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 the market. The State requires they activate the license by June 16, 2009. Staff wanted to put the license on the market and advised they could realize $90,000 to $150,000 from the sale, less any broker's fee if they used a broker to market it. The broker's fee is typically ten percent. Since this could take a long time, staff was recommending selecting the Prakas Group to sell the license, based on their experience. Motion Mr. Hay moved that the staff go with the Prakas Group because of their extensive experience in the South Florida Restaurant and Bar area (of expertise). Mr. Weiland seconded the motion that unanimously passed. There was brief discussion about the adult use license. Ms. Brooks explained that license was not transferrable off the property. Mr. Bressner explained when the City purchased Morey's, they sold the liquor license and burned the use license. H. Consideration of Approval of Master Development Agreement between the CRA and the Auburn Group for the MLK Corridor Ms. Bright explained, in order to move forward with the Master Development Agreement, staff was seeking policy direction from the board on several items she outlined. On July 10, 2007, the CRA Board directed staff to begin negotiations with the Auburn Development Group for the MLK Corridor. The project was brought forward and conceptually approved by the Board in June of 2008. Since then, the Strand decision was made, then reversed and then upheld. In addition, the Property Tax Reform caused a $1,500,000 deficit to the CRA budget, and the world capital market was still changing. Item 1. Term of the Aareement. Auburn proposed a 20-year term and staff recommended a 10-year term. Auburn indicated they could build the project within 12 years. Ms. Bright requested the term be changed to 12 years, and was comfortable with the change. Chair Taylor explained he had a concern with signing a 20 or 12 year contract because of what has transpired in the market. He was inclined to do the project in Phase I and if that worked well, then to proceed to Phase II. He recalled, initially, Auburn had indicated they could build the project with their own funding; however, the CRA would be providing $20,000,000 in Tax Increment Financing funds. It was his understanding an analysis was done for Phase I and the developer needed $200,000 to be made whole, but was, in fact, requesting $1,900,000 in the first phase. He advised the design has changed in height from three stories to six and seven stories and he thought the entire package needed to be reviewed. Mr. Weiland spoke about performance issues from phase to phase in the contract as well as penalties and he was opposed to the 20-year time frame. Phase IV would be 22 TAB 1 T:\ADMINISTRATIVE\Templates\Tab Pages.doc TAB 2 T:\ADMINISTRATIVE\Templates\Tab Pages.doc AGREEMENT FOR PROJECT DEVELOPMENT, FINANCIAL. AND REAL ESTATE MANAGEMENT ANALYSIS AND SERVICES This Agreement is made and entered into this 14th day of April, 2006, between the DELRAY BEACH COMMUNITY REDEVELOPMENT AGENCY, an entity created pursuant to Florida Statutes Section 163, Part III, hereinafter referred to as the "CRA" and PMG Associates, Inc., hereinafter referred to as the "CONSULTANT". WIT N E SSE T H: WHEREAS, the CRA is desirous of retaining a consulting firm to provide professional project development, financial, and real estate management services on an as needed basis by the CRA; and WHEREAS, the parties are desirous of providing for a method of payment to the CONSULTANT for such services; and WHEREAS, the parties are desirous of providing within the terms of this Agreement the flexibility for additional specific projects to be undertaken by the CONSULTANT at the direction of the CRA. NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained the parties hereby agree as follows: 1. The Scope of Work is for General Project Development, Financial, and Real Estate Management Analysis Service and other consulting services which address real estate development and/or land planning projects as they present themselves during the agreement period. The CRA anticipates that they may be in need of Project Development, Financial, and Real Estate Management Analysis and/or land planning services related to community redevelopment and implementation of the Community Redevelopment Plan during the term of this Agreement. The professional general Project Development, Financial, and Real Estate Management Analysis and/or land planning services provided throughout the term of this Agreement for Project Development, Financial, and Real Estate Management Analysis (PMG) April 14, 2006 1 Agreement may be associated with the following and other CRA projects and initiatives as needed in support of the community redevelopment effort including on a continuing contract basis for projects in the Downtown Delray Beach Master Plan, West Atlantic Avenue Redevelopment Plan, the City of Delray Beach Community Redevelopment Plan, and the Southwest Area Neighborhood Redevelopment Plan for which construction costs generally exceed $1,000,000. At this point and time, the level of work effort on any and all of the reference projects has not been determined. No assurance is given that any of the projects will materialize during the term of this Agreement and that the CRA specifically reserves the right to award any or all of said projects to its other Project Development, Financial, and Real Estate Management Analysis and/or land planning firms pursuant to the Florida Statutes Consultants Competitive Negotiations Act and applicable procurement resolutions of the CRA. The following definitions and general conditions shall apply to this AGREEMENT and subsequent addendum: A. THE SCOPE OF WORK may be implemented in phases as set forth by this Agreement and by WORK ASSIGNMENTS, which are attached hereto and made a part hereof, and as also may be added as approved by the CRA from time to time. B. A WORK ASSIGNMENT is a form to be used to authorize work, projects, and services. The form shall be executed by the CRA'S and CONSULTANT'S representatives. A CRA project tracking name or number shall be identified on the form. A sample form of the service authorization is attached as Exhibit B to this AGREEMENT The projects, work, and services to be performed by the CONSULTANT, and time for completion of the particular phase of the work by CONSULTANT, shall be authorized by a WORK ASSIGNMENT. The WORK ASSIGNMENT shall include the scope of work to be performed; the budget cost, complete with an itemization of man-hours, wage rates, reimbursable expenses, and other related costs; schedule for completion and name of project manager. The CONSULTANT agrees not to bill the CRA for meetings required to negotiate or finalize the WORK ASSIGMENT. C. PHASES: A phased approach may be utilized. The CRA and the CONSULTANT shall have the right to negotiate the terms of each phase as con- tained within each WORK ASSIGNMENT, and to reject any work assignment, if the parties cannot agree to the terms of the service authorization. The CONSULTANT agrees not to bill the CRA for meetings required to negotiate or finalize the scope of work within each phase. In the event the parties cannot Agreement for Project Development, Financial, and Real Estate Management Analysis (PMG) April 14, 2006 2 agree, the CRA may select the next proposer or go out for additional proposals in order to complete the subsequent phase(s) of the project. This phased approach shall not waive the CRA's right to terminate the Consultant's contract during any phase of the project. 2. The term of this Agreement shall be for a period of three (3) years from the date of execution by the CRA. The CRA reserves the right to renew this Agreement on an annual basis for up to three (3) additional years thereafter, by providing the CONSULTANT with written notice of CRA's election to do so, prior to the expiration of the then current term. Notwithstanding the foregoing, either party may cancel this Agreement upon thirty (30) days advance written notice. 3. The CONSULTANT shall be deemed to be the "CONSULTANT and/or Planner of Record" for the CRA for specific projects assigned to the CONSULTANT during the term of this Agreement and the Executive Director or designee of the CRA is designated as the CRA's liaison with the CONSULTANT. The CONSULTANT designates Kathleen R. Gonot as its liaison with the CRA. Any changes to the above designations shall be requested in writing to the CRA and shall be approved by the CRA. The general duties of the CONSULTANT are as follows: A. The relationship of the CONSULTANT to the CRA will be that of a professional CONSULTANT, and the CONSULTANT will provide the professional and techni- cal services required under this AGREEMENT in accordance with acceptable professional practices and ethical standards. No employer/employee relation- ships shall be deemed to be established and the CONSULTANT, its agents, subcontractors, and employees shall be independent contractors at all times. B. Professional and Technical Services. It shall be the responsibility of the CONSULTANT to work with the CRA and apprise it of solutions to problems and the approach or technique to be used towards accomplishment of the CRA'S objectives as set forth in WORK ASSIGNMENTS, which will be made a part of this AGREEMENT upon execution by both parties. C. The scope of services to be provided shall be covered in detail in WORK ASSIGNMENTS. D. The CRA has established a budget for each project awarded to CONSULTANT. The CONSULTANT shall be responsible for providing, at no additional cost to the CRA, new reports, specifications, designs and other applicable services if the budget for the entire project is exceeded by more than five percent (5%) during Agreement for Project Development, Financial, and Real Estate Management Analysis (PMG) April 14, 2006 3 and up to completion of the design phase of the project; however, nothing contained herein shall require the CONSULTANT to bear additional costs if the additional costs are a result of a change in the scope of services directed by the CRA, delays in proceeding with the construction schedule, or other matters reasonably beyond Consultant's control. The CONSULTANT shall utilize its best efforts to design the project to meet the approved budget E. The CONSULTANT shall be responsible for the professional quality, technical accuracy, timely completion, compliance with regulations and rules, and the coordination with all appropriate agencies of all reports, specifications, designs and other services furnished by the CONSULTANT under this AGREEMENT If the CRA determines that within industry standards there are any errors, omissions or other deficiencies not caused by sources outside of the Consultant's control in the CONSULTANT'S reports, specifications, designs and other services within the scope of services for said projects, the CONSULTANT shall, without additional compensation, correct or revise said errors or omissions F. Approval by the CRA of reports, specifications, designs and incidental professional services or materials furnished hereunder shall not in any way relieve the CONSULTANT of responsibility for the technical adequacy of its work. The CRA'S review, approval or acceptance of, or payment for, any of the services shall not be construed to operate as a waiver of any rights under this AGREEMENT or of any cause of action arising out of the performance of this AGREEMENT. G. The CONSULTANT shall attend all meetings, as specified or as defined under Paragraph 1. above and/or each work assignment of the CRA Board or any City approval Board, where the project is discussed, unless the CRA's Executive Director or designee declares such attendance and participation is not necessary. In addition, the CONSULTANT shall attend a/l additional meetings as may be required to facilitate the project. 4. The method of payment for the services rendered by CONSULTANT shall be as follows: A. The CRA agrees to pay the CONSULTANT for all services rendered based upon the established hourly rate including overhead and profit as shown in Exhibit A. The rates listed in Exhibit A will be effective during the initial three-year term of this Agreement. The rates will be revised annually thereafter and modified upon approval of the CRA. Additionally, the CRA shall pay the CONSULTANT such other direct out-of-pocket expenses as the CONSULTANT shall incur for photocopy charges. material production charges, mileage, long distance telephone and other similar charges. Agreement for Project Development, Financial, and Real Estate Management Analysis (PMG) April 14, 2006 4 B. For each WORK ASSIGNMENT, other than general Project Development, Financial, and Real Estate Management Analysis services, a budget cost ceiling for the professional services will be established by the parties. Compensation to the CONSULTANT shall not exceed the budget cost ceiling for the work assignment without prior authorization from the CRA by written amendment to the work assignment. C. Payment shall be monthly in accordance with invoices for actual charges incurred during the preceding month. 5. The parties hereby agree to negotiate specific case-by-case addenda to this Agreement to provide the scope of specific services for individual projects through the WORK ASSIGNMENTS the CONSULTANT is directed to perform by the CRA. Such specific projects shall be other than of a general Project Development, Financial, and Real Estate Management Analysis nature. In the event of a specific project, the eRA reserves the right to request compensation for such specific projects to be negotiated on either a lump sum method, cost plus fixed fee method, or salary cost times multiplier method. 6. All materials, reports and other media developed by the CONSULTANT, pursuant to this Agreement, shall become sole and exclusive property of the CRA and the CONSULTANT shall deliver same to the CRA, in a timely manner, upon written request by the CRA for same. All documents including drawings and specifications prepared or furnished by CONSUL rANT (and CONSULTANT's independent professional associates, subcontractors and consultants) pursuant to this Agreement are instruments of service in respect of the Project and CONSUL rANT shall retain an ownership and property interest therein whether or not the Project is completed. The CRA may make and retain copies for information and reference in connection with the use and occupancy of the Project by the CRA and others; however, such documents are not intended or represented to be suitable for reuse by the CRA or others on extensions of the Project or on any other project. Any reuse without written verification or adaptation by CONSUL rANT, or by CONSULTANT's independent professional associates, subcontractor or consultants, shall be at CRA's sole risk and without liability to CONSULTANT and the CRA shall indemnify and hold harmless CONSULTANT and CONSULTANT's independent professional associates, subcontractors and consultants from all claims, damages, losses and expenses including attorney's fees arising out of or resulting therefrom. Any such Agreement for Project Development, Financial, and Real Estate Management Analysis (PMG) April 14, 2006 5 verification or adaptation will entitle CONSULTANT to further compensation rates to be agreed upon by the CRA and CONSULTANT. 7. Without limiting any of the other obligations or liabilities of the CONSULTANT, the CONSULTANT shall, at his own expense, provide and maintain in force, until all of its services to be performed under this Agreement have been completed and accepted by the CRA (or for such duration as it otherwise specified hereinafter), the following insurance coverages: A Worker's Compensation Insurance to apply to all of the CONSULTANT'S employees in compliance with the "Worker's Compensation Law" of the State of Florida and all applicable Federal Laws. Employer's Liability with limits of $100,000 per person, $500,000 per occurrence and $100,000 per each disease, B. Comprehensive General Liability with minimum limits of one million dollars ($1,000,000.00) per occurrence combined single limit for Bodily Injury Liability and Property Damage Liability. Coverage must be afforded on a form no more restrictive than the latest edition of the Comprehensive General Liability policy, without restrictive endorsements other than ISO Endorsement GL 21 06 (Engineers. CONSULTANTs, or Surveyors Professional Liability exclusion), as Filed by the Insurance Services Office and must include: 1 . Premises and/or Operations 2. Independent Contractors 3. Products and Completed Operations - CONSULTANTS shall maintain in force until at least three years after completion of all services required under this Agreement, coverage for Products and Completed Operations, including Broad Form Property Damage. 4. Broad Form Property Damage 5. Contractual Coverage applicable to this specific AGREEMENT. 6. Personal Injury Coverage with minimum limits of coverage equal to those required for Bodily Injury Liability. Agreement for Project Development, Financial, and Real Estate Management Analysis (PMG) April 14, 2006 6 C. Business Automobile Liability with minimum limits of three hundred thousand dollars ($300,000.00) per occurrence combined single limit for Bodily Injury Liability and Property Damage Liability. Coverage must be afforded on a form no more restrictive than the latest edition of the Business Automobile Liability policy, without restrictive endorsements, as filed by the Insurance Services Office and must include: 1 . Owned Vehicles 2. Hired and Non-Owned Vehicles 3. Employers' Non-Ownership D. Professional Liability Insurance applicable to CRA projects as follows: Construction Cost Ranoe 1. 0 - 99,000 2. 100,000 - 299,000 3. 300,000 - 499,000 4. 500,000 - Above with minimum limits per occurrence Limit 250,000 500,000 750,000 1,000,000 Coverage shall be afforded on a form acceptable to the CRA. CONSULTANT shall maintain such professional liability insurance until at least one year after a Certificate of Occupancy is issued. CONSULTANT shall insure that sub-consultants used for any portion of the project, maintain adequate levels of Professional Liability Insurance. E. Prior to commencement of services, the CONSULTANT shall provide to the CRA Certificates of Insurance evidencing the insurance coverage specified in the foregoing Paragraphs 7 A, 78, 7C, and 70. All policies covered within subparagraphs 7A, 78, 7C, and 70, shall be endorsed to provide the CRA with thirty (30) days notice of cancellation and/or restriction. The CRA shall be named as an additional insured as to CONSULTANT'S liability on policies referenced in subparagraph 78. The required Certificates of Insurance shall not only name the types of policies provided, but also shall refer specifically to this Agreement and section and to the above paragraphs in accordance with which insurance is being furnished, and shall state that such insurance is as required by such paragraphs of this Agreement. The CONSULTANT shall also Agreement for Project Development, Financial, and Real Estate Management Analysis (PMG) April 14, 2006 7 make available to the CRA a certified copy of the professional liability insurance policy required by paragraph 70 above for the CRA's review. Upon request, the CONSULTANT shall provide copies of all other insurance policies F. If the initial insurance policies required by this Agreement expire prior to the completion of the services, renewal Certificates of Insurance of policies shall be furnished thirty (30) days prior to the date of their expiration. For Notice of Cancellation and/or Restriction; the policies must be endorsed to provide the CRA with thirty (30) days notice of cancellation and/or restriction G. The CONSULTANT'S insurance, including that applicable to the CRA as an Additional Insured, shall apply on a primary basis. 8. Public Entity Crimes: A person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity crime, may not submit a bid on a contract to provide any goods or services to a public entity, may not submit a bid on a contract with a public entity for the for the construction or repair of a public building or public work, may not submit bids on leases of real property to a public entity, may not be awarded or perform work as a contractor, supplier, subcontractor or consultant under a contract with any public entity, and may not transact business with any public entity in excess of the threshold amount provided in Section 287.017, for CATEGORY TWO (Currently $25,000) for a period of 36 months from the date of being placed on the convicted vendor list. 9. Binding Authority. Each person signing this Agreement on behalf of either party individually warrants that he or she has the full legal power to execute this Agreement on behalf of the party for whom he or she is signing, and to bind and obligate such party with respect to all provisions contained in this Agreement. 10. Legal Representation.lt is acknowledged that each party had the opportunity to be represented by counsel in the preparation of and contribution to the terms and conditions of this Agreement and, accordingly, the rule that a contract shall be interpreted strictly against the party preparing same shall not apply herein due to the joint contributions of both Parties. Agreement for Project Development, Financial, and Real Estate Management Analysis (PMG) April 14, 2006 8 11. Headings. Headings herein are for convenience of reference only and shall not be considered on any interpretation of this Agreement. 12. Severability. If any provision of this Agreement or application thereof to any person or situation shall to any extent, be held invalid or unenforceable, the remainder of this Agreement, and the application of such provisions to persons or situations other than those as to which it shall have been held invalid or unenforceable shall not be affected thereby, and shall continue in full force and effect, and be enforced to the fullest extent permitted by law. 13. Governing Law. This Agreement shall be governed by the laws of the State of Florida with venue lying in Palm Beach County, Florida. 14. Attorney's Fees. In the event that either party brings suit for enforcement of this Agreement, each party shall bear its own attorney's fees and costs. 15. Extent of Agreement. This Agreement represents the entire and integrated agreement between the CRA and the CONSULTANT and supersedes all prior negotiations, representations or agreements, either written or oral. (This space intentionally left blank) Agreement for Project Development, Financial, and Real Estate Management Analysis (PMG) April 14, 2006 9 IN WITNESS WHEREOF, the DELRAY BEACH COMMUNITY REDEVELOPMENT AGENCY Board of Commissioners has made and executed this Agreement on behalf of the CRA and CONSULTANT has hereunto set its hand the day and year above written , T ~ft..J /Y1 i)[) /l-- 'i Ft t-- 1-/) (Name Printed or Typed) ?) ;, ~ Yh tnrU-() ,~ Signatyfe , D JANJi \LoWi\lN,A a~e Printe7\ or Typed) , - ~ i"-<~ Signature The foregoing instrument was acknowledged before me this ~ day of <).00(, by L.A-A<> /'t."- ShU-t.-'-vr-- (name acknowledging). WITNESSES: $'''''Y'II~ JEAN MOOREFIELD ~ W~ MY COMMISSION # D0443456 "'70Fl\.~'" EXPIRES: June 22, 2009 (~07) 398-0153 Florida NOIIll)l Service. com Personally Known v Type of Identification Produced: WITNESSES: P)f, '-I P /Y1. ~otVaT (Name Printed or Typed) ,~k. p-. .' igna re {9 IH2-L 6~ DoT (Name Printed or Typed) C-~ ~,_j( Signature eRA: Lamar Shuler, Vice Chairman (Name Printed or Typed) /17J /t-i '- , of person sign~i;~ olN~a~~"~tate of Florida 0t;,.+J /')'7 ...)..J rL- i r, z. L LJ Print, Type, or Stamp Commissioned Name of Notary Public OR Produced Identification r /1J G 1/--5SrJC-'it;~C- $1 nature ;::rt71!LIF171J 1(. 0D-<JO / (Name Printed or Typed) Agreement for Project Development, Financial, and Real Estate Management Analysis (PMG) April 14, 2006 10 COUNTY OF 64 uJ A-(2..-I) STATE OF r::CeJ aD It The fOJegoing instrument was acknowledged before me this L day of (YJ IJ-l.f <fJ.btJ(ft by j(./t>tll~ j( .bOVell (name of person acknowledging) . (Corporate Seal) ~ Sig ature of Notary Public - State of Florida ;11, {he/U L- ~(/){c;,SI 1M Print, Type, or Stamp Commissioned Name of Notary Public Personally Known / OR Produced Identification !\01AflY PLBIlC-ST/\IE OF FLOhJDA ~' Michelle L. Roussin . Commission # DD463122 Expires: AUG. 19, 2009 B(),,(~cd Thru Atlantic Bcmding Co., Inc. Type of Identification Produced: t-:?iJ0-L 6Mo~ CRA Legal Counsel APPROVED AS TO FORM AND LEGAL SUFFICIENCY By H:\2006\060018 DBCRAIAGMT 2006\Project Development Contin_ SVC5_ Contract REV1 (Clean).doc Agreement for Project Development, Financial, and Real Estate Management Analysis (PMG) April 14, 2006 11 EXHIBIT A PROJECT DEVELOPMENT, FINANCIAL, AND REAL ESTATE MANAGEMENT ANALYSIS SECTION/TITLE {RATE SCHEDULE} HOURLY RATE PMG ASSOCIATES,INC Principal Economist Redevelopment Specialist Research Analyst $145.00 $135,00 $135.00 $ 55,00 THE CARDWELL LAW FIRM Lead Attorney Associate Attorney $200.00 $175.00 Agreement for Project Development, Financial, and Real Estate Management Analysis (PMG) April 14, 2006 11 FROM :FLAG INSURANCE SERVICES FAX NO. :9547247702 Dec. 29 2005 11:43AM P2 r----.. ..-...... ..' .. ., I Date: F.LAG CERTIFICATE OF INSURANCE 12/29/2005 PROI)UCBR: PHONE: (800) 748.3524 THIS CERTIFICATf!: IS ISSUED AS A MAITER OF FLAG Insurance SerVil'!eR INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS 5701 Pine bland Road, Suite 350 CERTIFICATE DOES NOT ;\MRND, EXTEND OR Fort Lauderdale, FL 33321 ALTER THE COVERAGE AFFORDEJ) BY "I-(F, POLICV(IES) NOTED BELOW. NAMED 1Nf>'URED INSURER AFFORDING COVERAGE PMG Auoel$l$$, Ine. 2151 Wesl Hlllsboro Blvd., Sui 301 Philadelphia Indemnity Insurance Co Deerfield Beach FL 33442 THE POLICIES OF INSURANCE LISTED BELOW HA VB BEEN ISSUED TO THE INSURED NAMED AGaVE FOR THE POLICY PERIOD INDICATED. NOT WITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CER'11f!CATB MAY HE ISSUED OR MAY PERT AIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL 01-' THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LTMTTS SHOWN MAY HAVE BEEN R.EDUCED BY PAID CLAIMS. TYPE OF INSURANCE POLICY NUMBER EFF EXP LIMITS / DEDUCTillLES DATE DATE K~ch Occurrence; $1,000,000.00 Aggregnle: $1,000,000.00 Professional LIability TBA 1/1/2006 1/112007 Personallnj. & Adv: $0.00 RlITRO DATE: Prod/Compl. Ops Agg; $0,00 01'01/89 I)cduc~hle: $2,500.00 Agg. I~ductiblc; $0.00 ADDITIONAL LOCATIONS: DESCRIPTION OFOPERATIONS/S1>ECIAL PROVISIONS: CERTIFICATE HOI,J)~R; CANCELLATION: SHOULD ANY OF THE ABOVE POLICIES BE CANCELLRD "BEFORE THE EXPIRATION DATE INDICATED, THE ISSUING INSURER Wn~L ENDEAVOR TO MAIL 30 DA YS WRITIEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, FAILURE TO DO SO SHALL JMPOSE NO OHUGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS A.GENTS OR REPRESENTA.TIVES. A \JTHORLZED REPRESENT A 1'1 VB: ~.~~ =,:::_.l~' .- .. -...-- PUBLIC ENTITY CRIMES Sworn Statement Under Section 287. I 33(3)(a), Florida Statutes on Public Entity Crimes This form must be signed in the presence of a Notary Public or other officer authorized to administer oaths: This sworn statement is submitted to The City of the Delray. Florida - CRA k>4-rIfLC:::.e'7U K. GC-?/UO.r /J h1 /2. (Print individual's name and title) ., rr"1 ~ H 5S0C/I+T6~ ..L/UC- (print name of entity submitting ~om statement) For Whose tmsiness adqress is c9 / .5- ( !AJ~ JI-; / I .s PO If. 0 13 / t/-0 ~ c..) ; .tzE" 30 f,J I b e-/!::/( Fr e-zl) I3C'/I, I:::: L.- :3 ~'I'~ 2:. 1'1 and (if applicable) its Federal Employer Identification Number (FEIN) isj~c;/;1 S Ii 35~ / ~ (if the entity has no FEIN, include the Social Security Number of individual signing this sworn statement: I understand that a "public entity crime" as defined in Paragraph 287.133(1) (g), Florida Statutes. means a violation of any state or federal law by a person with respect to and directly related to the transaction of business with any public entity or with an agency or political subdivision of any other state or of the United States, including, but not limited to, any bid or contract for goods or services to be provided to any public entity or any agency or political subdivision of any other state or of the United States and involving antitrust, fraud, theft, bribery, collusion, racketeering, conspiracy, or material misrepresentation. I understand that "convicted" or "conviction" as defined in Paragraph 287.l33(l)(b), Florida Statutes. means a finding of guilt or a conviction of a public entity crime, with or without an adjudication of guilt, in any federal or state trial court of record relating to charges brought by indictment or information after July 1, 1989, as a result of a jury verdict, non-jury trial, or entry of a plea of guilty or nolo contenders. I understand that an "affilliate" as defined in Paragraph 287.133(1)(a), Florida Statutes means: A predecessor or successor of a person convicted of a public crime; or; an entity under the control of any person who is active in the management of the entity and who has been convicted of a public entity crime. The term "affiliate" includes those officers, directors, executives, partners, shareholders, employees, members, and agents who are active in the management of an affiliate. The ownership by one person of shares constituting a controlling interest in another person, or a pooling of equipment or income among persons when not for fair market value under an arm's length agreement, shall be a prima facie case that one person controls another person. A person who knowingly enters into a joint venture with a person who has been convicted of a public entity crime in Florida during the preceding 36 months shall be considered an affiliate. I understand that "person" as defined in Paragraph 287.133(1)(e), Florida Statutes, means any natural person or entity organized under the laws of any state or of the United States with the legal power to enter into a binding contract and which bids or applies to bid on contracts for the provision of goods or services let by a public entity, or which otherwise transacts or applies to transact business with a public entity. The term "person" includes those officers, directors, executives, partners, shareholders, employees, members, and agents who are active in management of an entity. Based ~ information and belief, the statement which I have marked below is true in re7 to the entity submitting this sworn statement. [Indicate which statement applies.] Neither the entity submitting this sworn statement, nor any of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, nor any affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July I, 1989. The entity submitting this sworn statement, or one or more of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, or an affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. The entity submitting this sworn statement, or one or more of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, or an affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. However, there has been a subsequent proceeding before a Hearing Officer of the State of Florida, Division of Administration Hearings and the Final Order entered by the Hearing Officer determined that it was not in the public interest to place the entity submitting this sworn statement on the convicted vendor list. [Attach a copy of the final order.] I understand that the submission of this form to the contracting officer for the Public Entity identified in Paragraph ONE (#1) above is for that Public Entity only, and that this form is valid through December 31 of the calendar year in which it is filed. I also understand that I am required to inform the Public Entity prior to entering into a contract in excess of the threshold amount provided in Section 287.017, Florida Statutes, for category two of any change in the information contained in this form. vm G iJ S50CIA ~C:;/J7U <:-- ~,melfll~&tm-- Title: /) P I<... L? '5 /' J) ~ r- STATE OF rru.~DIt COUNTY OF ~ ---11J ,4/Zl) Sworn to and subscribed before me this / (, rt....- day of /1//U!!(!,/t.-'. 200.0.. Personally known to me, or produced the following identification as proof of identity: ~~ N Public WJ h e'/ Le.. L- KOI-lSS { n . Printed Notary Name ~ Commission Expires: t; /q / d-'o07 l\OTARY PUBUC-STATE OF FLORIDA ~ Michelle L. Roussin Commission # DD463122 Expires: AUG. 19, 2009 Ronded Thru Atlantic Bonding Co.. Inc. TAB 3 T:\ADMINISTRATIVE\Templates\Tab Pages.doc Scope of Work Financial Analysis of Master Development Agreement and Developer Financial Viability 1. Review and analysis of Auburn financials as of 12/31/08 (or latested available as directed by the CRA) prepared by CPA and review of latest audited financial to determine Auburn's viability as an organization and its ability to obtain and carry the debt necessary to fund the proposed project. 2. Review the latest project development and operating proformas to determine the need for public subsidy. Provide an opinion of what the public subsidy should be, if any, to make the project financially feasible. 3. Review and analyze the business terms of the Master Development Agreement and advise of any recommended changes. 4. Analyze the Agency's future TIF revenue over the next five year period to determine the ability to fund the project as outlined in the Master Development Agreement. 5. Analyze the Agency's bonding and financing capacity based on projected TIF revenue over the next five years. 6. Determine the TIF revenue to be generated by the proposed project by phases and year. TAB 4 T:\ADMINISTRA TIVE\ Templates\Tab Pages. doc COl\lI1Ut Creek. FL PM G Associates, Inc. Miami. R_ Hrndersonville. NC Economic, \IJr~eting and \lanagel11l:'n! C(1n~llltanh December 30, 2008 Vivian L. Brooks, Assistant Director Boynton Beach Community Redevelopment Agency 915 S. Federal Highway Boynton Beach, Florida 33435 PMG Associates, Inc. (PMGA) is pleased to submit this price quote to complete professional services on behalf of the Boynton Beach CRA. This quote represents our fee to complete the Scope of Services as defined in the attachment. The fee for this engagement will be a lump sum amount of $14,650, which will include all personnel costs and direct expenses. PMGA will also agree to use the current contract with Delray Beach as the basis of this agreement. If this is acceptable, please let us know how to proceed. Very truly yours, PMG Associates, Inc. K~'R. Gcm.ot" Kathleen R. Gonot President .+ 171 W~"l Hilbbp!"tl Bllllh:lard. Suitt: X . CX:Ulllll Cr~'~'k F1lljid~l .~\I 173 . 1\)'\.1) .+27 -:'lOll! . Fa\ (95.+) ..+X()-XX3h . WII \1.pl11~awlCiah:,.l'Ol11 Scope of Work Financial Analysis of Master Development Agreement and Developer Financial Viability I. Review and analysis of Auburn financials as of 12/3] /08 (or latest available as directed by the CRA) prepared by CPA and review of latest audited financial to determine Auburn's viability as an organization and its ability to obtain and carry the debt necessary to fund the proposed project. 2. Review the latest project development and operating proformas to determine the need for public subsidy. Provide an opinion of what the public subsidy should be, if any, to make the project financially feasible. 3. Review and analyze the business terms of the Master Development Agreement and advise of any recommended changes. 4. Analyze the Agency's future TlF revenue over the next five year period to determine the ability to fund the project as outlined in the Master Development Agreement. 5. Analyze the Agency's bonding and financing capacity based on projected TIF revenue over the next five years. 6. Determine the TlF revenue to be generated by the proposed project by phases and year. :--\\j J ,"c~\r":'" ~~~<tY~T2~lCRA Ii East Side-West Side- Seaside Renaissance eRA BOARD MEETING OF: January 13, 2009 x I Consent Agenda I Old Business I I New Business Public Hearing Other SUBJECT: Approval of the Amendment/Authorization to Proceed for Work Order # 07-124.6710 in the amount of $9,900.00 with MCSW, Inc. for the production of Marina Slip Renovation Construction Drawings SUMMARY: At the May 13, 2008 Board meeting, Work Order #07-124.6700 was approved with the CRA's land planning and marine engineering firm, MSCW, Inc. to begin preliminary design concepts and engineering of the Boynton Harbor Marina Slip Renovation project. As a result, MSCW, Inc. and sub-consultant, Sea Diversified, have been working with CRA and City staff to produce an acceptable slip layout and design (see attached). On December 16, 2008, at 3pm, CRA staff, MSCW, Inc. and Sea Diversified held a meeting at the Two Georges Restaurant to present the revised slip design concept to the current slip tenants, the owners of the Sea Mist and the owner of the Two Georges Restaurant/Marina. The intent of the presentation was to provide design details, construction methods, construction impact on commercial vessel owners and to answer any questions. The presentation was a success with tenants having an opportunity to interact with the marina design team, while offering input and support for the design concept. Copies of the design layout were provided to the dock master in order that tenants would have additional time to review the plans and provide comments. The Work Order authorizes the preparation of final architectural/construction drawings, construction documents for the dock/slip renovations, material specifications, water & electrical system engineering, and necessary exhibits for all City of Boynton Beach Building Department, DEP, SFWMD and Army Core permit submissions. FISCAL IMPACT: $9,900.00 Source of Funds: 2007 PBC Waterway Bond Grant-$2,000,000 awarded to the CRA. CRA PLAN, PROGRAM OR PROJECT: CRA Redevelopment Plan, Boynton Harbor Marina Master Redevelopment Plan RECOMMENDATIONS: Approval of the MSCW, Inc. Work Order #07-124.6710 for Boynton Harbor Marina slip renovation construction drawings and engineering in the amount of $9,900.00. , ~4/~~ Michael Simon Development Manager T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by Meeting\FY 2008 - 2009 Board Meetings\1-13-09 Meeting\MCSW work order # for slip construction drawings.doc ....... n.__IJUllltr....._UIIII~~1 ~_ ~rw........-.-,......UNUN'IVIIW..-...,.;. IU~MllPUIOI.....IKI..u.&DMIIIY'JT.IHVI_,~"""IIftUHL.IUIW__r~1 '_'!UN. ._-.......... PILE PATH: G:\Job.\07\070 124\Cad\DWC\Coft.ulraftll\CiyjJ\recJeamnnlfied_l.5.0S\Cro.. Sudan JOB NUMBEIl: 070124 DATE: Jlftu1rr 200' LIMITS OF WORK EXHIBIT BOYNTON BEACH CRA BOYNTON HARBOR MARINA 4750 New Broad Srreeu Orlando. Plorlda 32814 Tel, 407.422.3330 I Pax, 407.422.3329 I www.MSCWinc.com ~A 1)1\ , I' ;-.. \ ' BANANA BOAT RESTAURANT BOYNTON HARBOR MARINA SLIP RENOVATION PLAN o Itl" -.....----...,--.-....----------...--- -- --------.--..- FILl PATH, C:\J...\t7\r1.U4'c.4\D'WG'c-ka.n\Chd......5o'.~I.'...\c.-. s.m.. (Si ",OltCT HtJIoIJ!'l: mu. tlAmJ"1IU}'2'" 4750 H_ BfCl.d SUftll Orl.ndo. florid. 32114 SEA TrI: 407.421.'330 I Pu.: 407.422.332' 1__.MSCWlnc.c:olQ ,,1\ H~""J 11-1' BOYNTON BEACH CRA ( , u ( \- ,//r'-' '''''' ,~, ,."" ~~j!.i:r'~~ ~:>r::;.:\ I., ~ :f.;.~" '. :,c~/' / ~ \ l \! - __,J ".. ,-'~,,; ,.,;,,;. ." -~ r--------;;;-~-;=;;~::;;=;?~;;-'~'"" --~' ~ \ - l 1l~lln.o. \ \ \ \ \ \ \ I I ~ \ \ \ \ \ \ \ \ Le, :) ~ <t \ ,.] '" C) Q \: l) \ <- 'J: 0- <5 \ \ \ [:,' :;:;~ I , .. ~I I ~I ~I / . /' / /JVLNUE ~@W[1JL@[N] [fj]~[Rj~@[Rl [R.,~~[RlO~';]~ rMJ ~ IRi ~ IN] t!i ] ~"'~ r> IRl (Q! W 12 rMJ ~ IfJ IF ~ ])~(';,: ~~ill~~}il ~(Q)(Q)@ :HPROV[I.\:N-S NOT LOCH_D CASA LOMA BOULEVARD SQ/1~ R/V .:K ~ASA rw 1Il.1I. o TWO GEORGBS ;~:I~I~C~~:I~~ :~::l\ 8EST !\UFMN71 / v.'Uvn. [l ~.S' - '.n' /. I 1.. I ";- ',1 _J "." I <';i I _I I ! .e '.'Il' :' ,.1. i to; . . .:, r,_ I ,,,:'l:.,~,,'.~5.J~..;,~,~r ....' ~::-::: \ "~..~"'~..,, ""'''\'J~ /rCOIIClltlruA".....l SOlJTI- P,OPERT" L INC / COIICRiltllUllHo,lO / ,J ii' III -II So: i. i ~ ~ ~i 5g ~~ '> ~ ~ i " " jJ II ~ ;~ ~ illi gqa (H m ~ ~~ i~~ i ;.~ ;;~ ~- ~A . . [jI\NAN/\ DO/\T RESTAURANT ~ ~ ~f .- / ..-.... -.'''' t.o......' -. r...... " /'"' ,,-.... '0'-0" 10'-0' l '0'-0' 'I .lO'-O" ~'.O" WAHQNAI. 00Ck ,',20' liNCEI' PER (IVP) .~. '1 " """.{, f";;"" " ... ..~...-!. '" ~, {; -,:. /0 I.'-ft' WOt. AlUU. OOQ( BY G4JOR DOOC .& lIAHlflWt. OR ..~O EOUAL 2"](6. P T. TlWBER rENDER SYSTEM. ALllRNAIE. I"U. .'pe. HAHOWOOO PI ASTle Pit r CAP :t'Xto" P. J. I1UBER PilE WRAP AND FlHOf.R S'rSTEU. "lTERN^1E 2"X'0. "'tpe" "Al101lIOOIl S El 5.0' NGW -~UHWt:ll.79'NGW - 5' -0' "IDE ^LU". DOCK WI 2'X6' TIIM3ER DECKING (AlT!:RNATE "X6' "PE' HARDWOOD) BY GATOR DOO< A: VARIN( 00 APPROVfn [QUAt.. naST, SFAWAll TYPICAL DOCK SECTION - 30' SLIP WITH 5' MARGINAL WALKWAY SCALE: 1/4" - 1'-0' .....,..... TYPICAL DOCK SECTION A BOYNTON BEACH CRA BOYNTON HARBOR MARINA _..______.___._..__._.____.._.._______..:___:._....:__.__._. .1 ~ fill PATH, c.\J..\.7\07I1Z4\CM\D1rC\c.........n\O.."nc..s..DIftnl..,U.,.O'Ier- s.m.. G nOJ!CT NUMIER. 87"14 DATa. J-r2~ 4750 N", Braid Strur, Orbado. florlda 32114 SEA Tel: 407.421.3330 I f.-I 407.422.33nl_.MSCWlac.cDM ~ "Htl1..1I0/1 .. l' .0" ....7' flHCfR PIER (TYPl 10'-0' t l~'-o" ~ I~ ..._.. 00Cl< 8'-0" 32'-0' 51." ~ .c'-O" \IllOE AlU.... OOQ( BY GATOR DOCK . ...ARlftE OR APPfiWVEO EOUAL '-)(6" p 'T" Tll9ER rrNDrQ SYSTEM AIl[RNA.lt '-X6" -lpe-- HARt)WOOi) PlAS TIC PIU CA.P 2-)(10" p.r. nt.lBER Pa[ wqAP ""10 FENDER srsTt'J. .....1ERNA TE 2"X10" "Jpc. HARDMJOO ~ n 5.0' NG\'O 'l.tHW EL 1.19' HC\lD 8'-0. 'MDE ALUM. DOCK wI 2"X6- TIMBER OECKINC (AlfERNArE "X." ~pC HAIlOWOOO) BY GAtOR DOO< It. WARlNf. ffi APPROVED EOVAl. s" AlUM. CKANttf.\. CROSS "Ell/lfR, (') EA SIDE or PIlE (fYP) BY CAfOR DOCK It "^""E OR APPROVED EQUAl. EXlST. SEAWAll TYPICAL DOCK SECTION. 32' SLIP WITH 8' MARGINAL WALKWAY SCALE: 114" - 1'-0" ..,..... , . ~ I ir @~I TYPICAL DOCK SECTION B BOYNTON BEACH CRA BOYNTON HARBOR MARINA FlU rATH. C;:'\J*o\llnfI'.ll"Cd\DW1:.'c.-,"...n\Ch;l\__s..~t.,..ot\er...s.cu.. raOJI!CT NUMtER. 07IlIU DATE;'.....,.ZIlOf 47~O Nr- Broacl Suuff OrlUldo, Florid. 32114 Td: 407.421.3330 1 pu: 407.421.332' 1_.MSCWlnc.r:... \ ( .... l ~!I~qY~T2~IC RA iIii East Side-West Side-Seaside Renaissance eRA BOARD MEETING OF: January 13, 2008 I X I Consent Agenda I Old Business New Business Public Hearing Other SUBJECT: Approval of grant funding for Kyza Green up to $21,000 from the Homebuyers Assistance Program SUMMARY: Ms. Green is purchasing a single family residence located at 641 NE 5th Street, located within the HOB neighborhood area. Ms. Green's household income has been certified as very low per HUD 2008 guidelines. Ms. Green will execute the CRA HAP documents which require the CRA to share the equity in the event the property is sold within 30 years of closing date. The HAP grant application, as submitted and reviewed, meets the criteria set forth in the approved program guidelines and therefore does not require a wavier of any kind. FISCAL IMP A<;T: Up to $21,000 from Project Fund Line Item 02-58300-421 - Bond #2 CRA PLAN, PROGRAM OR PROJECT: Home Buyers Assistance Program RECOMMENDATIONS: Approve up to $21,000 from the Homebuyers Assistance Program budget to assist Ms. Green in the purchase of 641 NW 5th Street, subject to execution of the CRA's mortgage, note and agreement at the closing of the property. ~U/~ Michael Simon, Development Manager T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by Meeting\FY 2008 - 2009 Board Meetings\1-13-09 Meeting\Kyza Green HAP.doc Angella Elizabeth King Realty REQUEST FOR SUBSIDY Date: Lender: December 26, 2008 Bank Atlantic P.O. Box 8608 Ft. Lauderdale, FL 33310 Edith Bynes 1-800-330-371 ] 954-940-5460 Contact Phone: Fax: Buyer(s): Kyza C. Green Seller: United Capitol Group LLC Property Address: 641 NW 5th Street Boynton Beach, FI 33435 Year Built: 1956 Bedrooms: ~ Sq uare Footage: 1641 Bathrooms: U Purchase Price: $109,000 Loan Amount: $91,092.60 (Base loan 88,000 +3092.60 MlP Buyer's Funding: $ 3,092.60 Subsidy Requested: $21,000 Household: Annual Income: $16,937.23 fncome Classification: Very Low Monthly Housing ExpenseIFront Ratio: $810.34135.17% All Other MonthLy Debt/Back Ratio: $52.00137.43% f 1IJ!~~<tY~T2~ eRA iIi East Side-West Side-Seaside Renaissance eRA BOARD MEETING OF: January 13,2009 I Consent Agenda I Old Business I I New Business I I Public Hearing I X \ Other SUBJECT: CRA Policing Activity Report for the Months of November 2008 and December 2008 and District Stats for Months of November and December 2008. (Info. Only) SUMMARY: Monthly report, providing activity and data on Crime in the CRA District: November 2008: · Crimes - 58 · Arrests - 8 · Calls for Service - 1622 December 2008: . Crimes - 62 . Arrests - 11 . Calls for Services - 1550 FISCAL IMP ACT: Cost budgeted in FY 2008-2009 from Project Fund 02-58500-460 CRA PLAN, PROGRAM OR PROJECT: CRA Policing Innovations RECOMMENDATIONS: Info. Only T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by Meeting\FY 2008 - 2009 Board Meetings\!- 13-09 Meeting\CRA Crime Monthly Stats.doc eRA Police Team MONTHLY ACTIVITY REPORT c- MONTH: NOVEMBER 2008 11/05/2008 ..Conducted EXP As at all parks located in the HOB -Conducted traffic enforcement throughout the entire CRA District -Assisted the Marine Unit with a Federal Investigation (Customs) at Boat Club Park -~pecial attention to the following locations; Boat Club Park, First Financial Plaza, Jaycee Park, Boynton Isles, Women's Club, and Marina Village -QOL sweeps along the MLK Corridor -Executed Search Warrant at target location along the Federal Highway Corridor 11/12/2008 and 11/17/2008 -Conducted surveillance at target location for the remainder of the week to document criminal activity -Assisted the Traffic Unit with a Search Warrant ref to an illegal tow~g ring resulting in 365 felonies and over 100 misdemeanor charges .. - Conducted traffic enforcement throughout the entire CRA District -Conducted surveillance at target location 11/24/2008 -Patrolled the CRA District in vehicles and on bicycles -Conducted traffic enforcement throughout the entire CRA District - Conducted EXP As at all parks located in the HOB -QOL sweeps along the North Seacrest Corridor -Trolley Pllttols MisdeD,leanor Felony Citations Warr~~~~s .. Charg~s fj1~d}~ . . Warrants Executed ;0:: ." ~. \(- I TOTAL ARRESTS K- P- h- OIJ ~~=Phetamines ~ ~:~C1es r-- MarijUlUlli I Herom Schedule II I Schedule III Schedule IV I Guns MONTH: DECEMBER 2008 eRA Police Team MONTHLY ACTIVITY REPORT 12/03/2008 . . '~.;.'i.".~ .,:; ','; . -9()rid~cted ,ExP As at all shopping centers and parks along the Federal Highway Comdor . -Trolley Patrols -QOL sweeps along the Federal Highway Corridor; 7 arrests 2 COVs, 6 Misdemeanors, and 8 Felonys -ASSIsted with the preparation and the events associated with the Holiday Parade and Concert -Assisted C()deEnforcement and Department of Financial Services Fraud Division wi~ a compliance sweep at 1415 South Federal Highway (Las Ventanas) ,_. .. , -Distributed Holiday Crime Prevention Pamphlets throughout the eRA District -Operation Plaps completed for a residential complex along Seacrest Blvd and a local motel 12/09/2008 "~CRA Board Meeting -Patrolled the CRA District in vehicles and on bicycles (15 miles) ',,;;:' -Assis!ed RP with calls for service -Conducted traffic enforcement throughout the district -Special attention. to the following locations; Sunshine Square, Winn Dixie Plaza, Seagate, Boynton Isles, Snug Harbor, Sterling Village, Marina Village, and Mariner Village -Prostitgti611 ~ration resulted in 5 arrests ~Assjsie4 ~tl1 tile pn~parati?n aIid th~ events associated with the HoJ~#Y ~oat Parade 12/17/2008 - Participa~~g ijitlie arillual"Shop With a Cop"event at W a1:m.art -Opet~911sJ't J()~al motels resulted in the following; 3~ested and 1 will be filed on, 1 stolen car recovered, I vehicle fo!foIfeitirre, .9gms of cocaine. and 12 oxycodone pills recove!ed, 8 misdeD,leanor lIl!d 16 felony char,ges.' .. . ."' . -Pattoil~(ftb.e eRA l)istrict on bicycIes and in vehicles . OF -" ~-' - ;- _~ ,,~\"t~~-~.. _ :~". _ '_, .. .,' ,::ASsiSteci RP wfth calls for service t?:-'tL" .' ,-' '; -i"~(~'.-i:.:> i f!ii~~~~:,:~ ;;!~ ~~y ~ .;",~;,.., . . "~1\s,,~t r1Ist Fl!1~n~i~ Plaza, :qoat Club Park, Texaco, anq G\lIJs!reilplMall property "c' :l.f.~' _..:':'.i.'~.;L;'..' -- . ; -' ::,.. .{"" .' -, .-.. ':"_ '-,' ,.: --.- .,c . '. ,. '.,.' .'.' t j.t.< c. 'u. u....._... , '-CO~p!~t~d~~atch WlUTant appUcationS - 2 City Holidays and 2 vacation days 12/24/2008 llf) \ r! 1" l [ '.' ' Misdemeanor Felony Citations .. _.._--------,,-~_.._-_..._--_..- Warrant Arrests _ Charges Filed Warrants Executed I TOTAL ARRESTS Cocaine 11.1 gm Methamphetamines . M~ri j~<1!l~__J(j'~m Heroin . Schedule II Cash Vehicles 2 116 pills Schedule m------r------- Schedule IV i GUns----------------r- - .---- Boynton Beach Police Department Year-To-Date Crime Report 2007/2008 CRA District DECEMBER 2008 CRIMES Dee-08 Dee-07 + 1- Nav-08 + 1- Y-T-D Y-T-D + 1- 2008 2007 Criminal Homicide 0 0 0 0 0 1 3 -2 Sexual Offense 0 0 0 0 0 1 4 -3 Robbery 7 7 0 5 2 79 74 5 Aggravated Assault 4 7 -3 7 -3 126 138 -12 Buralarv 15 15 0 13 2 167 191 -24 Lareenv 34 44 -10 31 3 385 405 -20 Auto theft 2 7 -5 2 0 63 53 10 TOTAL 62 80 -18 58 4 822 868 -46 ARRESTS Dee-08 Dee-07 + 1- Nav-08 + 1- Y-T-D Y-T-D + 1- 2008 2007 Criminal Homicide 0 0 0 0 0 1 4 -3 Sexual Offense 0 0 0 0 0 0 0 0 Robberv 2 1 1 0 2 29 11 18 Aaaravated Assault 2 3 -1 3 -1 68 62 6 Buralarv 0 3 -3 0 0 17 35 -18 Lareenv 7 12 -5 5 2 65 90 -25 Auto theft 0 0 0 0 0 8 2 6 TOTAL 11 19 -8 8 3 188 204 -16 + I - Nav-08 1550 1512 38 1622 -72 19118 -724 1/6/2009 Ii v' . ,~~" ~/.';;. .,~;:~ ;~~-~,:f, ~~~'tY~T8~IC RA ill East Side-West Side-Seaside Renaissance eRA BOARD MEETING OF: January13,2009 I I Consent Agenda I Old Business New Business Public Hearing I X I Other SUBJECT: Boynton Beach CRA and Trolley Web site Statistics SUMMARY: Monthly report, generated by Google Analytics, providing data on the number of visitors to the CRA and Trolley websites: December 5 - J anuarv 4 Agency: 1,405 Trolley: 418 October 31-November 30 (previous month) Agency: 1,229 Trolley: 411 FISCAL IMPACT: Cost budgeted in 2008/2009 from Project Fund Budget CRA PLAN, PROGRAM OR PROJECT: Transportation Concurrency Exception Area (TCEA) RECOMMENDATIONS: Info. Only ~J:f-clii is L Marketing and Communications Director T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by Meeting\FY 2008 - 2009 Board Meetings\1-13-09 Meeting\Monthly Website Stats December.doc Dashhoard - Google Analytics Pagl ,wnc:1vtics Setting~ Dashboard Saved Reports Visitors Traffic Sources Content Goals Custom Reporting Bet. Settings Advanced Segments Beta Email Help Resources About this Report Conversion University Common Questions /I adelspergerm@ci.boynton-beach.fl.us I Set/lflll"- I My i" i U Ii I HI I> iU View Reports: www.boyntonbeachcra.com "",' b.l\&ivti(.~; i\CCOU!ltS. Boynton Beach CRA CftA ~Ee>5iT(' Export Email Kela Advdr Ii ;2'~ ~ ,+., r,' i 1"0 All Visits Dashb.. . Dee 5, 2008 - Jan 4, 2009 Visits Graph hi . , !\ Irt'- .."....". \ \/~. O!oomber 82008 llecember l52oo! December 12. 2008 Oecember 29, roO! r"'"''--''.''''''' .... I Site Usage L...." "."n...."_.,,_.,,>>>,,,,__... .. 1,405 Visits 3,261 Pageviews 2.32 Pages/Visit "/'V"V'"j!\~ 00:02:00 Avg. Time on Site 52.67% Bounce Rate \,/,..... At, \,-,/\."-'-1' \,/\r\ ... 62.490/0 % New Visits Visitors Overview l____~_.___.___~..._. "_,. _. __ _"_',_,,~ Map Overlay P::i 1,009 Visitors - "" _1_ -~--_/~.~~l.....~~~/_~_~....;~~/C)n~;rl-,)Il1.{;'l"', 1 r" 1"\ /).",-, Dashboard - Google Analytics Page 1 of2 adelspergerm@cLboynton-beach.fl.us I Settings I My Account I Help I Sign Out Analytics Settings View Reports: www.boyntonbeachtrolley.com Dashboard Saved Reports Visitors Traffic Sources Content Goals Custom Reporting Beta Settings Advanced Segments Beta Email Help Resources About this Report Conversion University Common Questions My Analytics Accounts: Boynton Beach Trolley 1"leoa..c.€Y ",,'as; ii Export Email Seta Advanced Segments: All Visits Dashb... Dee 5, 2008 - Jan 4, 2009 Visits Graph by: ;0 ,0 II, : Oeaber S. 2008 i Oersnber 22, 2DtII OecooiJfr 29, 2DIIS 0ece00er 1S. 2008 l.~ite Usage __J ~"- 418 Visits ~ ~\ 1,096 Pageviews ~\.. 2.62 PagesNisit ~ ~ 37.320/0 Bounce Rate 00:02:09 Avg. Time on Site 81.580/0 % New Visits II Map Overlay Visitors Overview 366 Visitors https://www.google.com/ana1ytics/reporting/dashboard?id=4528711&scid=2436191&et=res...1/512009 Y11.1~FOR A.1'lO~ O~lS~ c. p\annillg and De"\T lO\llllellt Board Nleeting A.genda-De elllber 23, 2008 CITY OF BOYNTON BEACH PLANNING & DEVELOPMENT BOARD MEETING AGENDA DATE: Tuesday, December 23,2008 TIME: 6:30 P.M. PLACE: Commission Chambers 100 E. Boynton Beach Boulevard Boynton Beach, Florida 1. Pledge of Allegiance. 2. Introduction of the Board. Agenda Approval. 4.. Approval of Minutes. 5. Communications and Announcements. A. Planning and Zoning Report 1. Final disposition of the October 28, 2008 Planning and Development Board meeting Agenda items. 6. Old Business None 7. New Business A. Sam's Club I Northstar Annexation 1. PROJECT: AGENTS: Sam's Club I Northstar (ANEX 09-001) Bonnie Miskel and Scott Backman OWNER: Walmart Stores #8140 / Northstar Cemetery Services of Florida, LLC Planning and Development Board Meeting Agenda December 23. 2008 . age , Sam's Club I Northstar (ANEX 09-001) cont'd. LOCA TION: West of North Seacrest Boulevard, South of Hypoluxo Road.. 7233 Seacrest Boulevard and 3691 Seacrest Boulevard DESCRIPTION: Request to annex the properties. Sam's Club I Northstar land Use Amendment IRezoning 2. PROJECT: Sam's Club I Northstar (lUAR 09-002) AGENTS: Bonnie Miskel and Scott Backman OWNER: Walmart Stores #8140 I Northstar Cemetery Services of Florida, LLC LOCATION: West of North Seacrest Boulevard, South of Hypoluxo Road. 7233 Seacrest Boulevard and 3691 Sea crest Boulevard DESCRIPTION: Request to amend the Comprehensive Plan Future Land Use Map classification on .::!::41.49 acres of land from Commercial High (CH / 5) and Institutional (Palm Beach County) to Local Retail Commercial (LRC); and Request to rezone from Palm Beach County Commercial General (CG) and Residential Multifamily (RM) to Planned Commercial Development (PCD) and C-3, Community Commercia'. B. New Urban High Ridge land Use Amendment I Rezonina 1. PROJECT: New Urban High Ridge ( lUAR 09-001) AGENT: Timothy L. Hernandez OWNER: New Urban High Ridge, LLC LOCATION: Northwest corner of High Ridge Road and Miner Road DESCRIPTION: Request to amend the Comprehensive Plan Future Land Use Map classification on ,::!:18.44 acres of land from Medium Density Residential to Industrial and; Request to rezone from Planned Unit Development (PUD) to M-1, Industrial. Planning and Development Board Meeting Agenda December 23, 2008 C. Habitat for Humanity Abandonment 1. PROJECT: AGENT: OWNER: LOCATION: DESCRIPTION: D. Harbor Cay Site Plan Time Extension 1. PROJECT: AGENT: OWNER: LOCATION: DESCRIPTION: E. The Arches Site Plan Time Extension 1. PROJECT: AGENT: Page 3 Habitat for Humanity (ABAN 09-001) Peter Blacklock of Ruden, McClosky City of Boynton Beach West of the FEC Railroad right-of-way, north of NE 11th Avenue Request for abandonment of an unimproved portion of Railroad Avenue approximately 15 feet wide and 45 feet long, located west of the FEC Railroad right-of-way and approximately 50 feet south of N.E. 12th Avenue, in connection with the plan to build infill single-family housing. Harbor Cay (SPTE 08-007) Sid E. von Rospeunt Harbor Cay, LLC East side of North Federal Highway, approximately 160 feet north of Gateway Boulevard Request for a second one (1 )-year time extension of the site plan (NWSP 06-011) approved on May 2,2006, thereby further extending site plan approval from May 2, 2008 to May 2, 2009. The Arches (SPTE 08-010) Bonnie Miskel, Esq., Siegel, Lipman, Dunay, Shepard & Miskel, LLP Planning and Development Board Meeting Agenda December 23, 2008 The Arches (SPTE 08-010) cont'd. OWNER: LOCATION: DESCRI PTION: F. Tuscan Villas Site Plan Time Extension 1. PROJECT: AGENT: OWNER: LOCATION: DESCRIPTION: G. Lake Worth Christian School Site Plan Time Extension 1. PROJECT: AGENT: OWNER: LOCATION: Page" Boynton Ventures I, LLC Southwest corner of Ocean Avenue and Federal Highway Request for a third one (1 )-year time extension of the site plan (MSPM 05-008) approved on September 6, 2005, thereby further extending site plan approval from September 6, 2008 to September 6,2009. Tuscan Villas (SPTE 08-011) Ken Tuma, Urban Design Studio Tuscan Villas @ Boynton Beach East of Federal Highway; approximately 1,100 feet north of Gulfstream Boulevard Request for a second one (1 )-year site plan time extension of the site plan (NWSP 06-002) approved on April 18, 2006, thereby further extending site plan approval from October 18, 2008 to October 18, 2009. Lake Worth Christian School (SPTE 09-001) Jeff Zito, Project Manager Lake Worth Christian School Society, Inc. 7592 High Ridge Road, east side of High Ridge Road approximately one-half mile north of Miner Road Planning and Development Board Meeting Agenda December 23, 2008 Page 5 Lake Worth Christian School (SPTE 09-001) cont'd. DESCRIPTION: Request for a one (1) year site plan time extension of the conditional use/major site plan modification (COUS/MSPM 07 -003) approved on July 17, 2007 for 18 months, thereby extending approval from January 17, 2009 to January 17, 2010. H. Pet Care Code Review 1. PROJECT: Pet Care (Boarding & Daycare) (CDRV 09-001) AGENT: City-initiated DESCRIPTION: Request for interim amendments to the Land Development Regulations, Ghapter 2, Zoning to add provisions and regulations for Pet Care (Boarding and Daycare) in the C-3, C- 4, CBD, PCD, SMU, MU-L 1, MU-L2 and M-1 zoning districts. I. Temporary Banners Code Review 1. PROJECT: Temporary Banners (CDRV 09-002) AGENT: City-initiated DESCRIPTION: Discussion of possible interim amendments to the Land Development Regulations, Chapter 21 Signs, Article III, Sec. 6(F) to increase the time period to 90 days that an existing business may display a temporary banner. 8. Other 9. Comments by members 10. Adjournment NOTICE ANY PERSON WHO DECIDES TO APPEAL ANY DECISION OF THE PLANNING AND DEVELOPMENT BOARD WITH RESPECT TO ANY MATTER 'ONSIDERED AT THIS MEETING WILL NEED A RECORD OF THE PROCEEDINGS AND FOR SUCH PURPOSE MAY NEED TO ENSURE THAT A ERBA TIM RECORD OF THE PROCEEDING IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. (F.S.286.0105) THE CITY SHALL FURNISH APPROPRIATE AUXILIARY AIDS AND SERVICES WHERE NECESSARY TO AFFORD AN INDIVIDUAL WITH A DISABILITY AN EQUAL OPPORTUNITY TO PARTICIPATE IN AND ENJOY THE BENEFITS OF A SERVICE, PROGRAM, OR ACTIVITY CONDUCTED BY THE CITY. PLEASE CONTACT JOYCE COSTELLO, (561) 7 42-6013 AT LEAST TWENTY (24) HOURS PRIOR TO THE PROGRAM OR ACTIVITY IN ORDER FOR THE CITY TO REASONABLE ACCOMMODATE YOUR REQUEST.11-27 S:\Planning\SHARED\WP\AGENDAS\P&D 1\2008 Agendas 12-23-08 Agenda Meeting new template.doc VII. INFO ATION ONLY: D. jBoynton Beach Na ed Best Practice tn South Flp.,ida Workforce H using Needs Asse$Sment , 1 ; , j r (' r \...~ ~ " ,~~f" South Florida Workforce Housing Needs Assessment ------ --- --- "---- - - - ~ FlU Metropolitan Center Research Team Ned Murray, Ph.D., A.I.C.P., Associate Director, Principal Investigator Dario Moreno, Ph..D., Director Amanda Gorski, M.A., Research Associate Dario Gonzalez, M.A., Research Associate Victoria Lerma, M.A., Research Associate , i I \ \ IL \~ 1111 Candy Hurtado, Research Assistant Stephanie Smith, M.H.S.A., Research Assistant ....... ~}. ui 1'181 r.- .-- ~"'T~UIllP1aIft1' ---- ---- ---- ------- - - - - - . -- --- --- -- ----- -- --- - - - :5;":" \r::,~~,t~:~'r!"r:~t~1?'~:~1"'1%,I~~~:,"~~!: ~-"'''''f''j~ South Florida Workforce Housing Needs Assessment "'~':"'~"""":';i~Jl!I':""'t1:'":~,,,",,,,:,,,~:,~.,,,-,,,,,,,,~.,....,t':!'\"\:~c,t"17'.~":" 1!''::};:-'' """, """'". ,~ '. Table of Contents Executive Summary Chapter ill Tables Continued: Chapter I: Introduction 3 Table 3.8: Broward County Single Family Affordability 200B 20 Chapter II: South Florida Workforce Housing Demand Analysis 6 Chapter II TabLes: TabLe 2.1: RegionaL Business Trends 6 TabLe 2.2: County Business Trends 6 Table 2.3: South Florida Top 5 Industries by County, 2007 8 TabLe 2.4: South Florida Top 5 Occupations by County, 2007 8 Table 2.5: Cost Burden by County 9 Table 2.6: Braward County AnnuaL Average Housing Demand Projections 2000-2030 10 Table 2.7: Miami-Dade Annual Average Housing Demand Projections 2000-2030 10 Table 2.8: Palm Beach County Annual Average Housing Demand Projections 2000-2030 10 TabLe 2.9: Broward County Projected Annual Average Housing Demand by Tenure and income Category 2000-2025 11 TabLe 2.10: Miami-Dade County Projected AnnuaL Average Housing Demand by Tenure and Income Category 2000-2025 12 Table 2.11: Palm Beach County Projected Annual Average Housing Demand by Tenure and income Category 2000-2025 12 Table 2.12: South Florida Private Sector Job Loss January 2007-July 2008 14 Chapter II FiQures Figure 2.1: South Florida Business Trends 7 Figure 2.2: Braward County Projected Low-Moderate and Workforce AnnuaL Demand 2000-2025 11 Figure 2.3: Miami-Dade County Projected Low-Moderate and Workforce Annual Demand 2000-2025 12 Figure 2.4: Palm Beach County Projected Housing Low-Moderate and Workforce AnnuaL Demand 2000-2025 12 Figure: 2.5: South Florida Housing Affordability Demand Spectrum 13 Table 3.9:Braward County Multi-Family Affordability 2007 20 Table 3.10: Broward County Multi-Family Affordability 2008 20 Table 3.11: Miami-Dade County SingLe Family Affordability 2007 21 Table 3.12: Miami-Dade County Single Family Affordability 200B 21 Table 3.13: Miami-Dade County Multi-Family Affordability 2007 21 Table 3.14: Miami-Dade County Multi-Family AffordabiLity 200B 21 Table 3.15: RentaL Affordability by County, 3"' Quarter 200B 22 Table 3.16: South Florida Foreclosures by County and Zip Code 24 Chapter III Figures: Figure 3.1: South Florida Foreclosures by County 24 Figure 3.2: PaLm Beach County Home Foreclosures, July 2008 25 Figure 3.3: Broward County Home Foreclosures, JuLy 200B 26 Figure 3.4: Miami-Dade County Home Foreclosures, July 2008 27 Chapter IV: South Florida's Best Practice in Workforce Housing 2B A. Background 28 B. The MunicipaL Scorecard for Affordable Housing Delivery<tl 29 Chapter III: South Florida Workforce Housing Supply Analysis 15 Chapter ill Tables: TabLe 3.1: South Florida inventory by Type, 2006 15 TabLe 3.2: South Florida Housing Vacancy 15 Table 3.3: PaLm Beach County SingLe Family AffordabiLity 2007 19 Table 3.4: Palm Beach County Single Family AffordabiLity 2008 19 Table 3.5: Palm Beach County Multi-Family AffordabiLity 2007 19 TabLe 3.6: Palm Beach County MuLti-Family Affordability 2008 19 Table 3.7: Broward County SingLe Family Affordability 2007 20 C. General Findings 30 D. Best Practice Case Study ExampLes 31 City of Boynton Beach Workforce Housing Redevelopment 32 City of DeL ray Beach Community Land Trust 33 Town of Davie Affordable Housing Policy 34 City of Miami Beach Rental Housing Preservation 35 Chapter V: Workforce Housing Policies and Strategies: Recommended Solutions 37 "I"~ ~1W'tw~:;ior~~:z;~!:.:"t:.~::;:'jp'?~"':''''''''''''''-~7'''-'i tl.OaKMbn""",lIOMI. Vlflvu.lITf EXECUTIVE SUMMARY The South Florida Workforce Housing Needs Assessment is the culmination of on-going efforts over the past two years of the B roward Housing Partnership, Inc. (BHP), Housing Leadership Council of Palm Beach County. Inc. (HLC/PBC) and the Workforce Housing Commillee of the Greater Miami Chamber of Commerce (GMCC) to address workforce housing issues in their respective counties. The South Florida "regional assessment" brings these mission-driven, private/public partnerships initiatives together with the support of the South Florida Regional Business Alliance (RBA), The growing demand and shrinking supply of affordable workforce housing became the top public policy issue in South Florida in recent years. Local housing studies have documented the extent and ramifications of South Florida's three-year (2003-2005) housing boom that resulted in a severe shortage of workforce housing and extreme affordability gaps for all housing types, The studies have shown that South Florida's workforce housing supply and affordability mismatch was exacerbated by speculative investment which resulted in multiple conversions of rental units to condominiums and an overall development trend in recent years toward a more upscale housing demand external to the local market. In the past two years, South Florida has had to endure the collapse of a highly speculative housing market. During this aftermath, South Florida communities have been beset with unstable housing market conditions intensified by rising home fOfeclosufes, increasing job loss and an overall tightening of the mortgage credit market. These economic conditions have combined to essentially paralyze the local housing market despite steady decreases in housing values during the past year, The South Florida Workforce Housing Needs Assessment provides a current regional perspective on the economy and the housing needs of the workforce. The study compares and contrasls key hOUSing and economic factors among the Tri-counties, The housing and economic market analysis provides the underpinnings for the study's "recommended solutions" and subsequent public policy action agenda to be finalized as part of the Regional Workforce Housing Conference, The following are the key findings of the regional workforce housing needs assessment KEY FINDINGS: , South Florida has lost 40,000 private sector jobs since January, 2007 , There are currently 70,000 South Florida homes in foreclosure; r The de-valuation of South Florida' s housing has resulted in significant negative equity and loss of wealth; r 700,000 units (30 percent) of South Florida's housing supply are now over 40 years old; r South Florida's growing number of housing vacancies now totals 365,295 units, of which 46 percent are seasonal homes; r Despite decreasing home values, South Florida's current single- family home price-to-median household income ratios range between 5'1-6 1; r South Florida's $1,200 average monthly rent is unaffordable to all households earning between 50-80 percent of the AMI (South Florida AMI approximately $54,000) , Approximately 85 percent of South Florida's renters earning 50- 80 percent of the AMI are cost-burdened; r South Florida's existing hOUSing demand totals approximately 527,000 units for households earning 50-80 percent of the AMI and 193,000 units for households earning 81-120 percent of the AMI: During the past three years the Metropolitan Center at Florida International University (MC/FIU) worked with the Broward Housing Partnership, Inc, and Housing Leadership Council of Palm Beach County to develop a "scorecard" mechanism to evaluate the performance of local governments, county and municipal, in addressing their workforce housing needs, A perfofmance evaluation tool, the Municipal Scorecard for Affordable Housing Delivery@ (MS-AHD) model was created to monitor and evaluate the progress of local governments In developrng and implementing workforce/affordable housing policies and building management and institutional capacities to address these issues long-term, The MS-AHD has also enabled the MC/FIU to highlight local municipalities and agencies that serve as "best practice" workforce housing examples in South Florida. The South Florida Workforce Housing Needs Assessment includes a profile of these South Florida Workforce Housing Needs Asspssmem municipal best practice case studies focusing on the capacity issues noted in the earlier Scorecard findings, The assessment includes '-ecommended policies and strategies divided into the four (4) elements of the MS-AH D model: 1) Policy and Management, 2) Planning and Land Use, 3) Local Dedicated Funding, and 4) Institutional Capacity Building. A. Policy and Management , Adopt a Comprehensive South Florida Workforce Housing Policy; r Support Creation of a Regional Affordable Housing Delivef',' System Involving New Public/Private Housing Partnerships - Support Creation of a ComprehenSive Single Permit Process fo' Workforce Housing Projects; Implement a INorkforr.e Housinu Performance Measllrempnl System: Give Workforce Housing Polie., t:~lphas'c Preservation and Production i~f"'flia\ H'}USlnU B. Planning and Land Use Coordinate and Integrate t:xlstin(j ;/Vnik f()rr:eiAffordable HOUSlfY Plans: Ensure Community Redevelopme[!! "'rea ICRA) Cummllment te, Workforce Housing Production, ~ Support Aggressive Workforce : ;iJuslng Urball Infi" Utilizing Existing Public Land Inventories, ". Adopt Land Use and Zoning Incenliv8:S lor Workforce HOUSing r Ensure no "Net Loss" of Existing ',,,ntai Housing Supply II Comprehensive Plans; 1 ~~..['f;,,: ",!J!!',,:::,',;:r:?'"' '~"':-::~~~::!;:::,',:!7"t:,:~~~',.:t ;1",~"_,.~,,,,,,~-,.~,.."~".~,,,.,.,........,, South Florida Workforce Housing Needs Assessment ~"n"-'""-""''i'':'''''''1'''-""",~,,\,,:~;;,,,,,'i:~ "f,,:~:'t '.:J!,ti~!k'-lFt'~_~P'-';';l1~:'\:~""'''''~>'~''''::';:~:#;:",: ,~\':"""hf '.' 1 C. Dedicated Funding ~ Create Local Dedicated Funding Sources for Workforce Housing; ). Leverage Local Private Funds with Federal/State/Local Public Funds; ). Target Workforce Housing Funds to Neighborhood Revitalization Initiatives; ). Give Funding Emphasis on Purchase/Rehabilitation and Rental Rehabilitation Activities; ~ Provide Pre-development Funding Support for Professionally-Competent Non-Profit Workforce Housing Development Organizations; D. Institutional Capacity-Building ~ Provide Support for Private/Public Housing Partnerships in the Implementation of South Florida's Workforce Housing Delivery System; )i> Develop a South Florida Workforce Housing Lending/Equity Investment Consortium; ~ Provide Support for Employer Assisted Housing (EAH) Programs; ~ Support Capacity-Building for Non-Profit Housing Development Organizations; ~ Create Alternative Funding Sources for Workforce Housing; ). Support Alternative Building Designs and Materials for Workforce Housing, 2 I Introduction A. Background The South Florida Workforce Housing Needs Assessment is the culmination of on-going efforts over the past two years of the Broward Housing Partnership, Inc. (BHP), Housing Leadership Council of Palm Beach County, Inc. (HLC/PBC) and the Workforce Housing Committee of the Greater Miami Chamber of Commerce (GMCC) to address affordable workforce housing issues in their respective counties. The South Florida "regional assessment" brings these mission-driven, private/public partnership initiatives together with the support of the South Florida Regional Business Alliance (RBA), The need to preserve and create an adequate supply of workforce affordable housing is a growing community and economic developmenl challenge in all of South Florida, Inflated housing values during 2003- 2005 induced by external market demand forces and speculative investment diminished the supply of affofdable owner and renter units and created a severe mismatch with the housing demand of South Florida's workforce. The housing demand imbalance was exacerbated by two critical supply factors: 1) the lack of production of workforce affordable owner and renter housing units, and 2) the wholesale conversion of multi-family rental housing into condominiums resulting in a substantial loss of South Florida's rental housing inventory. As the previous workforceiaffordable housing needs assessment nave shown, Broward, Miami-Dade and Palm Beach Counties are part of EO larger South Florida regional economy, Monroe County, particularly the upper Florida Keys, also factors into the South Florida regional economy. Prior housing needs assessments clearly demonstrated the important link between an adequate supply of workforce affordable housing and sustainable economic growth, The studies documented that many of South Florida's leading industrial sectors, including health care, professional services and retail trade are finding it increasingly difficult to attract and maintain workers in entry and management level positions, There is also now hard evidence that working families have begun moving to locations outside of South Florida that offer mare affordable housing and economic opportunities, thus disrupting the social fabric of many South Florida communities. A basic premise of all housing markets is the need to create and maintain a spectrum of housing choice and opportunity far all local residents, This axiom establishes that housing choice and needs differ within most community settings due to a variety of factors including' household income, papulation age, proximity of employment and mere preference, A critical finding of the prior housing needs assessments is the large unmet demand far affordable rental housing throughout South Florida, A spectrum of rental housing choice and opportunity is particularly important as an adequate supply of affordable rental housing provides choice and opportunity to working individuals and families with mare modest incomes. Prior studies have established thai these families and individuals comprise the vast majority of South Florida's workforce, ^ number of housing studies In recent years have shown a clear correlation between workforce housing demand and transportation costs, The critical link between housing and transportation casts has significant implications with respect to housing choice and affordabi/ity Housing and transportation costs can severely Ii mil a working household's choice both in terms of housing and jab location Unfortunately, for many working households in South Florida limited choice In lerms of housing affordability has created mounting transportalion expenditures, In fact. South Florida's sprawl developmenl pattern over the past twenty years has created Increasing spatial separation between wherE' workers JivE' and their places of employment Statistics show that the sprawl development pattern has significantly Increased commute times. In 1990, 81,160 South Florida workers (4 percent of all workers) commuted 60+ minutes to their place of Working famifies have begun moving to locations outside of South Florida that offer more affordable housing and economic opportunities, thus disrupting the social fabric of many South Florida communities. South Florida Workforce Housing Needs Assessment employment, By 2000, that number mare than doubled to 170,609 (8 percent) workers, From 2000-2006, the South Florida worker population commuting 60+ minutes to their place of employment grew to 236,396 (10 percent) workers, The most recent sludies prepared on behalf of the BHP, HLCiPBC and GMCC concluded that South Florida's housing market is in a severe state of flux marked by growing instability and uncertainty. The studies highlighted the extent and ramifications of South Florida's explosive three-year housing boom during the period 2003-2005 that resulted in a severe shortage of workforce housing and extreme affordability gaps for all housing types, The gross mismatch between housing values and workforce demand created an inflated housing inventory that has continued to grow in backlog as bath buyers and sellers await some level of market normalcy. Market instability and the rise in home foreclosures have essentially paralyzed the local housing market despite steady decreases in housing values during the past year. The rise in home foreclosures in South Florida is the result of several factors, including the proliferation of the sub-prime lending market during the height of the building boom, speculative investment and oredatory lending practices. The state of South Florida's housing market and regional economy has further deteriorated over the past two !ears with rising Job loss and unemployment due to the spillover effects If the housing bubble and lost government revenues, Over the past jear alone South Florida has lost over 16 000 jObs thus adding to thE' plight of many worker households, The South Florida Workforce Housing Needs Assessment provides an 'mportant regional perspective on the economy and housing market. rhe study compares and contrasts key hOUSing and economic factors and conditions among the Tri-counties and then provides recommended solutions far moving forward. Solutions were formulated based an "best practice" research in South Florida conducted by the FlU Metropolitan Center applying the MuniCipal Scorecard for Affordable Housing Delivery (MS-AH 0) model. The study findings and recommendations 1fe intended to serve as discussions points for the BHP. HLC/PBC and GMCC housing partnerships and the RBA in crafting a South Florida workforce housing action agenda South Florida's sprawl development pattern over the past twenty years has created increasing spatial separation between where workers live and their places of 3 ::Ji;';.i,;ID:~~~1t~illl:'1il~~:i;",~':t~;;\:~:}"~,j'I;;;;,~'~:;~~I;" ::"~'"~'.''''h''''''''''^''' B. Defining and Measuring Housing Affordabi/ity Housing Affordability is generally defined as the capacity of households to consume housing services and, specifically, the relationship between household incomes and prevailing housing prices and rents. The standard most frequently used by various units of government is that households should spend no more than 30 percent of their income on housing costs. This is the standard definition for housing programs administered by the Department of Housing and Urban Development (HUD) and most state programs, including housing programs administered through the State of Florida's Housing Finance Corporation (FHFC) and the Department of Community Affairs (DCA). Howevef, this definition has its limitations because of the inability to determine whether households spend more than 30 percent of their income on housing due to necessity or by choice. Specifically, the definition does not consider that upper income and smaller households are able to afford spending far above 30 percent of their incomes on housing, and have sufficient income left over to satisfy other basic needs; whereas low income households that pay only 10 percent of theif incomes on housing costs may be forced to forgo essential medical care and healthy food (The Brookings Institution, 2002). Therefore, it is important to develop a clear understanding of the demand for housing based on local employment and wages and the supply of housing based on workfofce affordability and accessibility. C. Affordabi/ity Indices One measure of housing affordability is the cost of homeownership, commonly conveyed through housing affordability indices. These indices generally indicate that affordability increased substantially toward the end of the last decade, primarily as a result of lower interest rates during that period. A housing affordability index for an area brings together the price and the income elements that contribute to housing affordability. While housing affofdability indices afe useful tools, they typically examine affordability only ffom an ownership pefspective. For households of lower income in a rapidly appreciating housing market, rent price increases have faf exceeded gfowth in incomes, deepening the housing affordability problem. The following describes the most recognized affordability indices: It is important to develop a clear understanding of the demand for housing based on local employment and wages and the supply of housing based on workforce affordabllltv and accesslbllltv ,.1 c-.. ~_ _ ,~_,.~ZII:,,~~~",~'~",';'X;,p'~~~ '10_III1&1JlAt1OIIIlI.lllfl"lAlIff ,~., .__~._..._.."_..~.."...,,....,._~~ Flor~~, wor~rc~...!;!.ousln~ Needs A,;s~e~~~~.nt " ' . . ..,....~~~~..,'~"J.~"""~~,l!ml~~!,~"'~,.. National Association of Realtors (NAR) Index The most common index is that produced by the National Association of Realtors (NAR). The NAR index meaSUfes the ability of the median income household in an area to afford a median priced house. In addition to the median income and median house price in an area, the NAR index considers current mortgage interest rates, assumptions about the down payment required to purchase the median price home, and the maximum percentage of household income that can be spent on housing. An index 'of 100 indicates the typical (median) family in the area has sufficient income to purchase a single-family home selling at the median price (Shimberg Center for Affofdable Housing, 2004). The Median House Price-to-Income Ratio The "median house price-te-income ratio" used by the National Association of Reallors and other housing analysts is a key economic indicator in assessing local market trends and vitality. The index compares the median sales price of an existing single-family home to the median household income in a given market. Nationally, the median house price-te-income ratio has more than tripled in the past five years in many high priced metfopolitan markets including New York City, Boston and Los Angeles. In South Florida, the median house price-to-income fatio widened from 4:1 at the beginning of the housing boom in 2003 to greater than 7:1 at the height of the market in 2005. Housing and Transportation Affordability Index The Housing and Transportation Affordability Index, aka "Affordability Index," evolved from research on the Location Efficient Mortgage @ (LEM) developed by the Centers for Neighbofhood Technology and Transit Oriented Development. The Affordability Index calculates the sum of avefage housing costs plus the average tfansportation costs for a neighborhood divided by average neighbofhood income. Basically, total housing costs equal current housing sales prices and rents, and total transportation costs equal the sum of the costs for auto ownership, auto use and transit. The Affordability Index would calculate the affordability of a home based on its market value and the transportation cost incurred by its location. Nationally, transportation is the second lafgest household expenditure after housing. Transportation expenditures range from 10 percent of the average household's expenditures in transit-rich areas to 25 percent in more auto dependent areas of the country. The Brookings Institution has calculated that the average U.S. household spends 19 pefcent of its budget on transportation. 1 The link between housing affordability and transportation expenditures has been further impacted with the increase in gas prices to over $3.00 per gallon in the past two years. In fact, the average household has increased its transportation expenditures by 14 percent or $1,200 per year. In South Florida, the increase in transportation expenditures represents 3 percent of the typical working household's annual earnings. Rising transportation costs have significant impacts on the rental housing market. The location of affordable rental housing is particularly relevant as proximity to job centers and public transportation is vital to a renter dominated workforce principally comprised of low- and moderate-income households. The location of affordable rental housing is particularly relevant as proximity to job centers and pUblic transportation is vital to a renter dominated workforce principally comprised of low- and moderate- Inrnmllo hnl,cIIo;hnlrle: D. Income Categories Federal and state housing programs have established income guidelines for the purpose of determining local program eligibility. There is some flexibility and certain variations in federal and state programs, but standard definitions have existed for some time particularly with respect to lower income categories. The Department of Housing and Urban Development (HUD) established income guidelines under the Housing and Community Development Act of 1974 and in reauthorizing legislation that includes the Community Development Block Grant (CDBG) and HOME programs. The Act defines .persons of low and moderate income" and "Iow- and moderate-income persons" as families and individuals whose incomes do not exceed 80 percent of the median income of the area involved. Families of persons under 80 percent of the median income are defined as follows: ""'"'--~--'~-"""''"'~~'--'''''''~;'^''''''~'''''''''~'- , , ~"~"''''''''''~-''''''~'~.~iiZ'''1'i:'iT'':?i~~~~'1-:'i''f.,,~~~~,;e<!:",lk':;4Wi",~~:l!l'J~~1';f~<ll~i~i~,~~,",i;:;; 4 1 The Brooklngs Institution, Urban Markets Initiative, Marl<et Innovation Brief. January 2006. Extremely Low-Income: Families and individuals whose income is between 0 and 30 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. HUD may establish income ceilings higher or lower than 30 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes, [Source: 24 CFR 91.5) Low-Income; Families or individuals whose income does not exceed 50 pefcent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families, HUO may establish income ceilings higher or lower than 50 pefcent of the median for the area on the basis of HUO's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. (This term corresponds to low- income households in the CDSG Pfograms,) [Source: 24 CFR 91.5J Moderate-Income: Families or individuals whose income does not exceed 80 percent of the median income for the area, as determined by HUO, with adjustments for smaller and larger families. HUD may establish income ceilings higher or lower than 80 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes, (This term corresponds to low- and moderate-income households in the COSG Programs,) [Source: 24 CFR 91,5J For the purposes of this study, the above standard HUD definitions are used for the lower income categories. This provides clarity for discussing the federal resources available for addressing low and moderate income housing demand. For income categories above 80 percent of the area median, the study separates the categories "workforce income" (80-120 percent), "middle Income" (120-150 percent) and "upper income" (greater than 150 percent), ~MlltnJtoOll'" .. ~ Con... E. Methodology and Scope of Study The methodology of the South Florida Workforce Housing Needs Assessment involved a comparative analysis of the economies and housing markets of Broward, Miami-Dade and Palm Beach Counties, The analysis builds on the prior workforce housing needs assessments performed by the FlU Metropolitan Center on behalf of the three county housing partnerships by providing updated economic and housing market data and combining the research into one comprehensive regional study. The best practice research, which provides the underpinning for the study's proposed solutions. utilized the findings from the Municipal Scorecard for Affordable Housing Delivery (MS- AHO) model applied in Broward and Palm Beach Counties, Miami- Dade County best practice research was conducted through interviews with individual municipalities and housing organizations, The study includes the following elements: n Workforce Housing Demand Analysis: This section provides ,OJ comparative analysis of the economies and \Norkforce affordable housing needs of Broward, Miami-Dade, and Palm Beach Counties. f3. Workforce Housing Supply Analysis: This section provides " comparative analysis of the key workforce housing supply factors and conditions of Broward, Miami-Dade, and Palm Beach Counties" C. Workforce Housing Affordability Analysis' This section extrapolates the key data findings from the workforce housing demand and supply sections and provides a comparative analysis of workforce housing affordability in Broward, Miami-Dade, and Palm Beach Counlies, n Best Practice Research: This section provides workforce housing "best practice" case sludy examples trom Broward, Miami-Dade, and Palm Beach Counties utilizing the findings from Ihe Municipal Scorecard for Affordable Housing Delivery (MS-AHD) model and local interviews, The Scorecards and best practice research provide the basis for the recommended "solutions" in the concluding Chapter V of the study. South Florida Workforce Housing Needs Assessment 5 ~..............- Industry 2000 2006 2000 2006 2000 2006 Number 01 Number of Number of Number of Number of Number 01 Number of Number of Number of Employees Establishments Employees Establishments Employees Establishments Employees EstablIshments Emplo ees E ~~~b~r 01 Number of Number of 9,650 125025 10377 97919 7,051 107,036 7,435 67135 5092 76,623 5525 6450 112674 6011 74,933 4606 64426 5562 59041 3753 64 347 4,623 3512 72 300 3566 69,987 3531 64 408 3894 58161 2756 44 431 3069 3694 88189 4183 57 608 3162 70561 3590 42.247 2095 55 388 2507 3740 41,092 4,906 41.754 4,037 51705 4978 29,643 3,406 42 805 4424 27 048 439 280 31,065 342,201 22,387 378,136 25,459 256 227 17,102 283 594 20,148 ) II South Florida Workforce Housing Demand Analysis A. Background This section provides a regional workforce housing demand analysis comparing the economies and workforce/affordable housing needs of Broward, Miami-Dade, and Palm Beach Counties. Workforce housing demand is largely determined by ongoing and planned economic development activities that result in sustained and expanded employment opportunities. Employment growth occurs through the retention and expansion of existing firms and new economic growth resulting from start-ups, spin-offs and relocations to South Florida. Populations follow jobs and the demand for workforce housing can be determined by the location, occupation types and wage levels of South Florida's major employment sectors. B. The South Florida Economy In order to effectively develop regional policies and strategies that address the demand for workforce affordable housing, it is important to first understand the spatial dimension of the South Florida regional economy. The first step is to determine the labor market area (LMA). LMAs are designated by the Bureau of Labor Statistics (BLS) in reporting key employment and unemployment data. LMAs are Retail Trade 115010 101404 Health Care and Social Assistance Administrative Support, Waste Mgmt.. Remediation Servicel 72 802 78818 35 534 AccommodaUon & Food SeNtees Construction Total. 403 568 Source: U.S. Census County Business Patterns, 2000-2006. FlU I ....... fLOUD.lolllnaMTIOIW.VfO"'-IfJ1 -, intended to capture economic integration which is determined by population density and commuting patterns. Within a defined LMA workers can generally change their jobs without changing their places of residence. Based on an analysis of employment and population centers and residential commuting patterns among the Tri-counties of Broward, Miami-Dade and Palm Beach, South Florida can be classified as a .major" LMA. Once the LMA is defined, planners and policy makers must consider the critical relationship between housing supply and demand and the dynamics of the regional economy and labor market. Regional economies defined by labor markets are fairly structured and have a certain level of geographic arrangement that relates to housing supply and demand. A spectrum of housing choice and opportunity within close commuting distance of employment centers helps create and support sustainable regional economies. c. Industrial Base Prior economic analyses of South Florida (Broward, Miami-Dade and Palm Beach Counties) have clearly shown that the regional economy is comprised of four major industries: Retail; Health Care and Social Services; Accommodation and Food Services; and Administrative Support, Waste Management and Remediation Services. A seven- year (2000-2006) trend analysis of County Business Patterns data substantiates both the preponderance and growth of these industries. Table 2.2: County Business Trends ) South Florida Workforce Housing Needs Assessment 'c_.'_' ........._...,,~. '",..""',~",,!,:_<.,11111.<." ""'1"<" :......-_ '. .. '" .. -., Together, these industries total 62,364 establishments and 965 608 jobs in South Florida. ' Table 2.1: Regional Business Trends ~ 2000 2006 '/r Change OO~O6 Industry Number Number Number Number Number of Number of of of of of Employee Eslabllshm Employee EstablIsh Employee Establish . enls . ments . ments Retail trade 280 064 21793 308 884 23 337 10,3% 7.1% Health care and soclal assistance 235,378 14809 261 447 18196 11.1% 22.9% Admin. support. waste mgt. remediation services 200 950 9799 181139 10551 -9.9% 7.7% Actorn. & food services 178 673 8951 214136 10280 19.8% 14.8% Construction 106 931 11163 135,402 14,308 26,6% 27.9% Totals South Florida Roolo" 1 001 996 66 838 1101010 76,872 9.9% 15.2% Source, U.S,Census County Busmess Patterns, 2007. A spectrum of housing choice and opportunity within close commuting distance of employment centers helps create and support sustainable regional economies. s a IS menls Employees Establishments 6 South Florida Workforce Housing Needs Assessment _.... _......._..,.."",../,..".-.~_.~,-_.- .~._---... Figure 2.1: South Florida Business Trends C RataO Trade . Hearth Care and Social Assistance C Adminlst...tlve Support, Waste M gmt. Remediation ServIces . Accommodation & Food Services . Construction ~ Number of Establishments ~ o o .c ... III Gl a:l E ~ Number of Employees 64,347 76 823 ~ Number of Establishments ~ o o "E! ~ Iii Number of Employees 70,561 64,408 84,426 107.036 ~ Number of Establishments ~ o o Gl '0 III '? E ~ Number of Employees 88,189 112,674 125,025 140,000 100,000 120,000 80,000 60,000 40,000 20,000 o Source: U.S. Census County Business Patterns, 2000-2006. 7 "'1" ~.. 'LOIlDA"'l~\Ilml&S1l' ....-.,..~~. .:;;.... " , ~ , ~) South Florida Workforce Housing Needs Assessment ;f:,,,,;7'~..' ~"" -~ - .... Table 2.3: South Florida Top 6 Industries by County, 2001 , Employment Annual Change 2007 2015 Total Percent Total South Florida Reqlon'Alllndustries 2 705 986 3 078 486 46 563 0.05 Total South Florida Region Top 5 Industries 439.109 585 227 15.765 1.72 Miami-Dade Counlv Total, All Industries 1 166.643 1 275841 13 650 1.17 Professional, Scientific, and Technical Services 69,880 89,590 2,464 3.53 Waste Management and Remediation Service 1,883 2,366 60 3.21 Social Assislance 16,915 21,249 542 3.20 Ambulatorv Health Care Servlcas 46,129 56.626 1,312 2.84 Administrative and Support Services 80,829 97,544 2,089 2.58 Too Five Total 215636 267 375 6,467 3.00 Broward Countv Total All Industries 869 603 997 089 15 936 1.83 Educational Servlcas 18,069 24,150 760 4.21 Nonstore Retailers 2,186 3,712 116 4.15 Social Assistance 11,459 14,996 442 3.86 Ambulatorv Health Care Services 40,311 51,803 1,436 3.56 Professional, Scientific, and Technical Services 54 680 69,906 1,903 3.48 Top Five Total 127,305 164,567 4,658 3.66 Palm Beach Countv Total All Industries 689 740 805 556 16977 2.53 Manaoement of Comoanles and Enterorises 9,654 13,853 525 5.44 Ambulatorv Health Care Services 32,742 46,433 1,711 5.23 Museums, Historical Sites, and Similar Institutions 699 962 33 4.70 Professional, Scientific, and Technical Services 39,663 54,207 1.818 4.58 Amusement, Gambling, and Recreation Industries 13,410 17,830 552 4.12 TOD Five Total 96168 133285 I 16,660 4.82 Source: FL AWl, Occupation and Employment Statistics, 2008 "I"~ Future projeclions (2001-2015) by the Florida Agency for Workforce Innovation (AWl) show that South Florida's economic growth will continue to occur within the same industry and employment mix (Table 2.2). Private sector employment growth will be greatest in Retail Trade, Administrative and Support and Waste Management, and Accommodation and Food Services. Of particular note, AWl projects that .Local Government. will generate more employment growth than all private industry sectors with the exception of Retail Trade. The AWl's Labor Market Statistics report provides important occupational employment and wage data that provides a clearer understanding of individual and household income in South Florida. The 2001 Labor Market Statistics report provides total employment figures and hourly wage estimates for all occupations, including mean, median, entry- and experienced-level wage rates. Table 2.3 indicates that South Florida's largest occupational employment is found in the service providing industries. These occupations generally have low entry and median hourly wage rates. In fact, many of the leading occupations that comprise South Florida's employment base - retail salespersons, cashiers, and waiters/waitresses represent the bottom of the occupation wage scale. Table 2.4: South Florida Top 6 Occupations by County, 2001 311,020 Miami-Dade Coun Retail Sales ersons 35 420 11.09 $23,061 Cashiers 30,050 7.84 $16307 Office Clerks General 26,500 11.22 $23 338 Stock Clerks and Order Fillers 21,840 9.42 $19,594 Securi Guards 20,210 10.00 $20,800 Broward Coun Retail Sales ersons 27470 11.53 $23,982 Cashiers 22,780 6.35 $17,368 Office Clerks, General 19,620 11.25 $23,400 Customer Service Re resentatives 16380 13.46 $26 036 Stock Clerks and Order Fillers 16,910 9.58 $19,926 Palm Beach Coun Retail Sales ersons 21,240 11.96 $24 677 Waiters and Waitresses 15 690 9.63 $20,446 Cashiers 15,560 6.53 $17 742 Re istered Nurses 12790 30.69 $63 635 Stock Clerks and Order Fillers 12360 9.66 $20,509 Source: FL AWl, Occupation and Employment Statistics, 2008. 8 '&.OUMblfWloAl1OIW.lIN'O'&aIffT Table 2.5: Household Cost Burden by County South Florida Workforce Housing Needs Assessment ""'~_'~~~"" "'^,. .,~...." _ ~I!"~,~./'!"b>;~"'!'- - . All Occupied Units Owner Occupied Units Renter Occupied Units Miami Dade Palm Beach Miami Dade Palm Beach Miami Dade Palm Beach County Broward County County County Broward County County County Broward County County 0 ccu e ous n(] 682 495 733 482,079 380 000 333,061 200 026 200 026 Total Cost Burden Occupied Housing South F10rtds Realon 1.001108 624 766 376 337 Totat Cost Burdened Occuoled Houslnn 64.2'1. 48.2% 44.2'10 49.9-/. 46.9% 41.2% 80.8'10 53.9"1. 53.5'10 l.es.than $20 000: 22.8'10 16.4% 15.9'10 13.8'1. 13.4% 14.0'1. 36.3'10 23.9% 21.4'1. 30 Dereenl or more 88.4'1. 89.2'10 88.1'10 86,3'1. 85.8'10 84.6'/0 89.6% 94.0% 95.3% $20 000 to $34 999: 17,8'10 17.1% 16.3'10 15.2'1. 13.4% 14.6'/, 21.7'10 23.7% 21.3'1. 30 Dereent or more 78.0./. 74.8'10 66.8% 72.6% 85.8% 58.9% 83.6% 86.7% 83.4% T 1810 IdH 828 794 682,105 106 Source: U,S. Census Bureau, American Community SUNey, 2006, D" Workforce Housing Demand As previously noted, the level of workforce housing demand is largely determined by job growth and retention. The affordability component of workforce housing demand, however, is based on local wages and salaries that are then translated into household income. The previous industry and employment analysis clearly shows that South Florida's economic base is principally comprised of service-providing industries, most notably, Retail Trade, Health Care and Social Assistance, Accommodation and Food Services and Administrative Support & Waste Management, Remediation Services. In total, service- providing industries account for over 60 percent of all jobs in South Florida. While service-proViding industries are essential to South Florida's tourism-based economy and do offer livable wages among many of the associated occupations, the vast preponderance of employment is found in low-wage eaming occupations. In fact, the 2006 median annual wage for all occupations in South Florida is approximately $30,500. The annual wage level translates to worker households with median incomes generally below the area median income (AMI) for Broward, Miami-Dade and Palm Beach Counties. Low and moderate income households have been especially impacted by rising housing costs in South Florida. The level of impacl can be readily determined by calculating the growth in cost-burdened households. According to the 2006 American Community Survey (ACS), the percentage of South Florida households that are cost-burdened has risen significantly in the past few years. The percentages are The annual wage leve/ translates to worker households with median Incomes generally below the area median income (AMI) for Broward, Miami-Dade and Palm Beach Counties. "'I"~ . hO&lP6"'T~UMWIUrn particularly striking for those households (owner and renter) earning less than $35,000 annually. In Miami- Dade County, 72.6 percent of owner households earning less than $35,000 annually are cost-burdened. For lower income renters the percentage (63-86 percent) of cost-burdened households is extreme in Broward, Miami-Dade and Palm Beach Counties. The recent Tri-county housing needs assessments calculated "existing" and "future" housing demand by tenure and household income category. South Florida's existing housing demand totals approximately 16,092 owner units and 10,443 renter units with a future (2010-2030) "annual" demand of approximately 16,117 owner and 6,752 renter housing units. The studies indicate that "low and moderate" income (<60 percent AMI) and "workforce" income households (60-120 percent AMI) comprise a significant percentage of South Florida's existing and future housing demand. Given the high level of cost-burdened owner and renter households and the growing incidence of .severely" cost-burdened renter households (>50 percent of income on housing costs) in South Florida, it is understandable why the greatest housing demand is driven by low and moderate-income worker households (<60 percent of AMI). In the Tri-counties, low and moderate-income "owner" housing comprises greater than one-third of existing and future annual owner housing demand. By comparison, low and moderate-income "renter" housing comprises greater than 60 percent of the existing and future annual rental housing demand in Broward, Miami-Dade and Palm Beach Counties. _. 9 Figure 2.2: Broward County Projected Low-Moderate and Workforce Annual Demand 2000-2025 .2001lo2010 .2011lo2015 02015-2020 . 2021lo2025 14,000 12,000 10,000 1,000 1,000 4,000 2,000 ;-,~"-'" Owner..occup"d Low-and Workforce Iktit. Re nl. r..()ecupill d Low- and Workforce Unit. lkl"s Moder.te- 10% 10 120% Units Moder.te- 10% to 120% Income 1kI1ts Income lkIits <80% <10% O<<ner-Occupied Units Rent.r-OCcupled tkIlts Source: U,S, Census Bureau. Census 2000 and American Community Survey. 2006. Tabulated by the FlU Metropolitan Center, 2007 and Browarrl Offlce of Urban Planning and Redevelopment. Planning Services Division, Browarrl County Population, ;..;;- ...: nul"~ Table 2.9: Broward County Projected Annual Average Housing Demand by Tenure and Income Category 2000-2025 Annual Average Demand 2000.2010 2010-2015 2015-2020 2020.2025 1931 2235 2155 2005 1176 1,361 1312 1222 377 265 256 236 5626 5215 5027 4681 2,194 2034 1961 1,826 1052 975 940 875 Source: U.S. Census Bureau, Census 2000 and American Community Survey. 2006. ,:, 11 l <- L Previous housing needs assessments have shown the highest concentrations of "low and moderate" and "worker" households are found in South Florida's larger municipalities. Coincidentally, existing and future demand for workforce affordable housing will be greatest in these locations. Prior analysis has also shown that low and moderate-income households constitute the vast majority of working households in South Florida. In fact, the median household income of many of South Florida's larger municipalities is significantly lower than Table 2.6: Broward County Annual Average Housing Demand Projections 2000-2030 Annual Average Demand 2000-2010 2010-2015 2015.2020 2020-2025 2025-2030 Total Occupied Housing Units 7,557 7,450 7,162 6,667 5,964 Renter Occupied 1,931 2,235 2,155 2,006 1,789 Owner Occupied 5,626 5,215 5,027 4,661 4,175 Source: U.S. Census Bureau, Census 2000 and American Community Survey. 2006 tabulated by the FlU Metropolitan Center, 2007 and Browarr/ Office of UrtJan Planning and Redevelopment, Planning Services Division, Broward County Population Forecasting Model the area median income (AMI). Such is the case in Deerfield Beach ($42,945), Pompano Beach ($45,508), Hollywood ($46,317) and Fort Lauderdale ($47,797) in Broward County; the City of Miami ($28,275), Homestead ($32,239), Miami Beach ($32,898) and Hialeah ($35,511) in Miami-Dade County; and, West Palm Beach ($46,393), Boynton Beach ($50,267) and Delray Beach ($54,717) in Palm Beach County. Table 2.7: Miami-Dade County Annual Average Housing Demand Projections 2010-2030 Annual Average Demand 2000-2010 2010-2015 2015-2020 2020-2025 2025-2030 Total Occupied Housing Units 120,129 9,496 10,209 10,187 9,951 Owner-Occupied Units .12,810 5,603 6,024 6,010 5,871 Renter-Occupied Units 17,319 3,894 4,186 4,177 4,080 Source: U.S. Census Bureau, Census 2000 end American Community Survey 2006 Miami-Dade ~~~~ty Department of Planning and Zoning, Research Section, 2006, Analyzed by F.I. U. Metropolitan Center, Table 2.8: Palm Beach County Annual Average Housing Demand Projections 2000-2030 TotalOccu led Housin Units 9519 Source: 2006 U.S. Census American Community Survey and Florida Bureau of Economic and Business Research 2007 Population and Household Projections, 11,386 10624 9,502 "I"~ 10 . ~ ...-... ..c..~ .-..."'" E" Translating Workforce Housing Demand into Workforce Housing Delivery As previously noted, workforce housing demand requires the existence or the need to create a spectrum of "housing choice" and "opportunity: Housing choice means a range of workforce housing types, e.g. single-family, town home, garden apartment, public housing. Housing opportunity equates to workforce "accessibility" by community and neighborhood and the general "availability" of affordable owner and renter housing. A critical finding of the prior workforce housing needs assessments is the large unmet demand for affordable rental housing throughout South Florida. A spectrum of rental housing choice and opportunity Is particularly important as the aforementioned economic analysis clearly establishes the pressing housing need for South Florida working households who earn less than the area median Income (AMI) and are currently cost-burdened. The translation of workforce housing demand into a regional system of workforce housing delivery begins with a determination of the Low & Extremely low <50'16 AMI 469,291 HH FlDI"~""- total number of households in South Florida that fall within each household income category. This is a critical understanding as the spectrum of housing choice and opportunity is either limited or enhanced based on household income. Those within the lowest household income category (Extremely Low Income < 30% of AMI) are the most restricled in terms of choices and opportunities, while those households at the highest household income category (generally, above Workforce Household Income >120% of AMI) have the most choices and opportunities. Together, the various household income categories represent South Florida's total housing demand. Once total housing demand is determined by various household income categories, total workforce housing demand is then calculated for those household income categories that are representative of South Florida's workforce. The previous economic analysis shows that the majority of South Florida's worker households fall within the "Moderate Income" (50-80% of AMI) and "Workforce Income" (80-120% of AMI) categories. Figure: 2.5: South Florida Housing Affordabllity Demand Spectrum - Moderate Income 50-80% AMI 321,843 HH Source: U.S. Census 2007 American Community Survey, figure created by FlU Metropoliten Center South Florida Workforce Housing Needs Assessment """-..'~ ,..-.,.,- ,": .' .',.., r .~'_ "",. . ~ ,.,", .- ,.....,. '," " . Once housing demand is determined by household income category, housing policies and program activities can be designed to respond to the issues of housing choice and opportunity. Traditionally, households in the "Extremely Low Income" (30% of AMI) and "Low Income" (30-50% of AMI) categories have limited choice and opportunity and are, therefore, typically in need of either emergency housing or some form of subsidized rental housing, e.g. public housing, Section 8 Vouchers. Households of "Moderate Income" (50-80% of AMI) have generally greater housing choice and opportunity but are typically limited to the rental versus homeowner market. Rental housing production and preservation programs expand choice and opportunity for Low and Moderate Income households. Ownership programs for this household income category provide expanded opportunity but require substantial public subsidies in higher-priced housing markets. Households within the "Workforce Income" (80-120%) category are generally suited for assisted first-time homebuyer programs, e.g. second mortgages, purchase/rehab loans, on the lower end of the income category, and "entry-level" market rate housing with minimal public assistance, e.g. down payment assistance, homeowner counseling, on the upper end. Middle Income 120-150% AMI 215.889 HH 13 (~ l (. -- - --- Figure 2.3: Miaml.Dade County Projected Low-Moderate and Workforce Annual Demand 2000-2025 .2000-2010 .2010-2015 02015-2020 .2020-2025 6,000 5,000 4,000 3,000 2,000 1,000 Owne, Occupied Renter OCcupied SOUIC9: U,S, Census Bureau, Census 2000 and American Community Survey, 2008. Miami-Dade Department 0' Planning and Zoning, Research Section, 2008, Tabulated by the FlU Metropolitan Center, 2008, Figure 2.4: Palm Beach County Projected Housing Low.Moderate and Workforce Annual Demand 2000-2025 .2000-2010 02015-2020 . 202ll-2025 .2010-2015 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1.000 o Workforce 1kI1ts 80% to 120.1. OWner-OCcupled lkIfts Renter-OCcupied lkIlts SOUIC9: U,S, Census Bureau, Census 2000 and American Community Survey, 2008, Tabulated by the FlU Metropolitan Center, 2008. FlD'I":""': . t South Florida Workforce Housing Needs Assessment ---- - ~ -~--~.. Table 2.10: Mlaml.Dade Projected Annual Housing Demand by Tenure and Income Category 2000-2025 Annual Average Demand 2000-2010 2010-2015 2015-2020 2020-2025 2,128 2,960 2,762 2470 1,320 1,835 1,713 1532 398 554 517 462 7,391 8426 7862 7032 3060 3488 3255 2911 1338 1525 1423 1273 Owner Housln Unit. SOUIC9: U,S, Census Bureau, Census 2000 end American Community Survey. 2008, Table 2.11: Palm Beach County Projected Annual Housing Demand by Tenure and by Income Classification 2000-2025 Annual Average Demand 2000-2010 2010-2015 2015-2020 2020-2025 7319 3894 4186 4177 4,611 2.453 2,637 2,631 793 422 454 453 12810 5603 6024 6010 3842 1,681 1.807 1803 2.203 964 1036 1,034 Renter-Occu led Unit. Low- and Moderate-Income Units <80% WOr1<folC9 Units 80% to 120% Owner-Occu led Unit. Low- and Moderate-Income Units <80% WOr1<force Units 80% to 120% SOUIC9: U,S, Census Bureau, Census 2000 and American Community Survey, 2008, 12 1 ,,-~ _.~, ..-. < .~ ..... ~ "'.~.... "'- -4 . F" Changing Workforce Housing Demand Factors The 2007 and 2008 housing market updates for Broward, Miami-Dade and Palm Beach Counties documented the housing market downturn and economic spillover effecls of the residential real estate boom period and resultant housing bubble. Instability and uncertainty In the housing market was the first stage of decline followed by a steady decrease in housing values and rising home foreclosures throughout the South Florida region. Beginning in 2007 the larger economic effects of the housing market downturn began to occur. Rising job loss and unemployment is now prevalent throughout South Florida along with new data showing population decline. As previously reported, working individuals and families had initially begun to leave South Florida due to the rising cost of housing. Now, working Individuals and families are being forced to leave South Florida in search of new employment opportunities as well. According to the Florida Agency for Workforce Innovation (AWl), South Florida has lost 39,600 private sector jobs since January, 2007 (Table 2.11). The highest job loss occurred in Broward County (17,100 jobs), followed by Palm Beach (12,400 jobs) and Miami-Dade (10,100 jobs) Counties. South Florida's Construction industry, which was particularly impacted by housing market downturn, lost the most jobs (17,600 jobs) during the last 18 months, followed by Finance & Insurance (9,000 jobs) and Retail (5,900 jobs). While the Construction industry has accounted for a significant portion of the job loss in South Florida, there are differences among the three counties with respect to job loss within other industry sectors. In Broward County, the highest job loss occurred in Finance & Insurance (7,000 jobs) followed by Construction (4,900 jobs) and Retail Trade (2,000 jobs). In Miami-Dade County, the highest job loss occurred in Construclion (7,600 jobs) followed by Administrative & Waste Services (4,000 jObS) and Professional and Business Services (3,300 jobs). In Palm Beach County, Construction (5,100 jobs) had the highest job loss followed by Retail Trade (2,800 jobs) and Manufacturing (1,700 jobs). South Florida's increasing job loss since 2007 has created significant spikes in the unemployment rates in the Tri-counties. According to AWl's July, 2008 employment figures, Palm Beach County experienced the largest increase in the unemployment rate (4.9 to 6.9 percent), followed by Broward County (3.9 to 5.8 percent) and Miami-Dade County (4.1 to 5.4 percent). The combination of the 18-month trend in private sector job loss and slowdown in South Florida's overall population growth may require an adjustment to future workforce housing demand projections at some point. However, given the cyclical nature of housing and employment markets, current workforce housing demand projeclions, notwithstanding a protracted housing and employment decline, should remain valid estimates for South Florida for the near future. I'ml"...... ) 1 South Florida Workforce Housing Needs Assessment > r-.. ",," .,...~~;._.-. Table 2.12: South Florida Private Sector Job Loss January 2007- Juty 2008 Industry Tille Jan.07 Jul.08 Job Loss % Change Total South Florida Region Nonagricultural Emplovment 2,428 500 2,363,800 64,700 -2.7% Miami Dade County Total Nonaarlcultural Emplovment . ,1,054,400,,,1 029 7004, ,,2.4-7,00 , ,,-2.3% Total Private ," ,,,,897,700,~887,600,,, ..1 0:11 OO~ ,.1~1% Goods Producing - - -- - _ _ 102,700~9J,700 11.000 -10.7.% Construction 54,200 45,800 8,400 -15.5% Total Government 156,700 142,100 14,600 -9.3% Administrative and Waste Services 75,900 67,300 8,600 -11.3% Total Govemment 156,700 142,100 14,600 -9.3% Manufacturing 47,900 45,400 2,500 -5.2% Professional and Business Services 148,700 141,100 7,600 -5.1% Broward County Total Nonaarlcultural Emplovment 789 000 766,900 22,100 -2.8% Total Private 684,900 667,800 17;100 -2:5% Goods Producing . "- 93,100_ 84,100 _ 1,000_ -11.7% Finance and Insurance 44,900 39,700 5,200 -1i'.6% Construction 61,200 54,800 6,400 -10.5% Financial Activities 67,300 60,800 6,500 -9.7% Manufacturing 31,800 29,200 2,600 -8.2% Total Government 104,100 99,100 5,000 -4.8% Transportation, Warehousing, and Utilities 24,400 23,400 1,000 -4.1% Retail Trade 103,700 100,100 3,600 -3.5% Palm Beach County Total Nonaaricultural Emplovment 585 100 567 200 17,1100 -3.1 % Total Private 519,400 507,000 12,400 -2..4% Goods Produclna 65,800 56 900 Si900 -13,5% Construction 45,700 39,500 6,200 -13.6% Manufacturing 20,000 17,300 2,700 -13.5% Total Govemment 65,700 60,200 5,500 -8.4% Leisure and Hospitality 73,700 69,400 4,300 -5.8% Wholesale Trade 24,000 22,800 1,200 -5.0% Accommodation and Food Services 56,900 54,200 2,700 -4.7% Retail Trade 74,500 71,000 3.500 -4.7% Source: FL AWl, July 2008, 14 'l.OIIIMlIrr~\tlQY&um III South Florida Workforce Housing Supply Analysis A. Background E. This section provides a regional analysis of the key market factors and conditions effecting South Florida's workforce housing supply, including a comparative profile of current housing values and affordability in Broward, Miami-Dade, and Palm Beach Counties. Housing supply factors include the total number of units by type, price range, tenure and absorption. Housing supply analysis also considers development trends and conditions impacting the overall housing market such as the current foreclosure and mortgage credit issues in South Florida. Previous housing supply analyses of the Tri-counties have captured the dynamics of South Florida's housing "boom and bust" aftermath with its spillover effects on both the regional housing market and larger economy. When combined with key housing demand factors, the data can be extrapolated to determine the relative balance between workforce housing demand and supply in South Florida. F. B" Housing Inventory According to the 2006 American Community Survey, South Florida has a current housing inventory of 2,380,712 units. Miami-Dade County has the largest current inventory (953,031 units) followed by Broward (796,535 units) and Palm Beach (631,146 units) Counties. South Florida's housing supply grew substantially since 2000 with accelerated growth occurring during the 2003-2005 residential building boom period followed by a sharp decrease in residential construction activity in the aftermath. South Florida's housing inventory increased by 230,963 units (10.7 percent) from 2000-2006 an average of 32,995 units per year. Miami-Dade County experienced the largest Increase (100,753 units) followed by Palm Beach (74,718 units) and Broward (55,492 units) Counties. Table 3.1: South Florida Inventory by Type. 2006 Mldm,.Dadp Pulm Be3ch South FlOrida County Browdrd County County Region Sinale-familv homes 505,904 329,531 343,402 1,178,837 Multi-familv homes 432,110 441 ,577 268,004 1,141,691 Mobile homes and others 15,017 25,427 19,740 60,184 Total 953031 796 535 631 146 2 380,712 Source: U.S Census, 2006. FlUI-=-. '_lIlT~v.-n South Florl~orkfo~~~sln_g.!:!eeds ~ssessm~nt c. Housing Occupancy and Vacancies Owner and Renter Units South Florida's housing inventory is comprised of 1,357,812 owner-occupied units (57 percent) and 657,605 renter-occupied units (27.6 percent). From 2000-2006, South Florida had an increase of 99,828 owner occupied units and 10,195 renter-occupied units. Miami-Dade County had the largest increase (46,400 units) in owner-occupied units followed by Broward (27,454 units) and Palm Beach (25,974 units) Counties. The increase in renter-occupied units was small in comparison. Miami-Dade County had an increase of 5,620 renter-occupied units (1.7 percent increase) followed by Palm Beach County with an increase of 4,369 renter-occupied units (3.6 percent increase). Broward County had an increase of only 206 renter- occupied units (0.1 percent), though the County actually declined by 6,172 units from 2004 as a result of condominium conversions. South Florida's small growth in renter-occupied units, as a whole, is attributable to the loss of existing rental units through condominium conversions and the general decline in new rental housing production activity. Vacancies One of the critical findings from the recently completed workforce housing needs assessments of the Tri- counties is the substantial increase in housing vacancies that has occurred since 2000. There are currently 365,295 vacant units in South Florida. Since 2000, South Florida's vacancies increased by 120,940 housing units or 49.4 percent. The largest increase in vacant units occurred in Miami-Dade County (48,733 units/64.5 percent increase) followed by Palm Beach (44,375 un~s/53.9 percent increase) and Broward (27,832 units/32.1 percent increase) Counties. The increases are attributed to the growing number of seasonal or second homes (168,372 vacant units) and the growing inventory of unsold vacant units on the market. The large increase in the number of vacant housing units held for seasonal use has become a major housing supply and demand factor in South Florida. Table 3.2: South Florida Housing Vacancy Pllr.1 f: lrh I '1110 a C{11II'\ j" I,J CloUfl'Y Cn,n:fV ~r,ulh flollll r{\c-,~,l)n 2000 2tr06 .ucu 20C& 2000 2006 200u 2006 Total: 75 504 124 '37 86 598 114430 82,253 126828 244 355 365 295 For rent 20 506 20,581 13,975 14,380 11,396 13,970 45,679 48,911 Rented or saki not occunled 5,529 6.180 5638 12,355 4,186 10,061 15,351 28,596 For sale ontv 10986 16088 12.129 14,988 7046 13915 30,161 46991 For seasonal recreational, or occasional use 31,316 42 636 46,470 58,225 52874 67,511 130,660 168 372 For mkuant workers 78 387 12 0 270 167 360 554 Other vacant 7,087 26.678 6376 14,502 6481 21004 21,944 62184 Source: 2006 American Community Survey = 15 ~) ,....... ."','~ D. South Florida Residential Sales Activity As previously noted, South Florida's unbridled residential real estate boom period left counties and individual municipalities with an "oversupply" of price-inflated single-family homes and condominiums. Much of new residential construction activity targeted an external higher-end market rather than the housing demand of South Florida's workforce. Higher sale prices for "new" single-family homes and condominiums also affected "existing" single-family home and condominium values. Prior housing needs assessments of the Tri-counties documented the inception and gradual demise of South Florida's residential boom period. Residential sales activity peaked during 2003-2004 and coincided with the first substantial increases in the median sale price of existing single-family homes. Appreciating home values were fueled by a voracious level of sales activity and speculative investment. Existing Single-Family Homes As previously noted, South Florida's "existing" single- family home market began to escalate in 2003. Broward County's existing single-family home sales activity peaked during 2003 with 15,163 sales at a median sale price of $228,600. The 2003 median sales price represented a 16 percent increase from ~... ~ 2002. In 2004 and 2005 Broward County's median ...,-:~ ' sales price sales would increase by 22 and 29 percent, ,: -".:: /' ~ ' . respectively, while sales activity steadily declined. ~J....." ,.~~,. , Miami-Dade and Palm Beach Counties experienced a <~ . '" ..-". . "" very similar pattern. In Miami-Dade County the level of , . \ _ :;. ...... . '. . V existing single-family home sales activity peaked In ....., 2004 with 12,622 sales at a median sale price of $273,900. The median sales price represented a 21 percent increase from 2002. In 2004 and 2005 the median sales price of an existing single-family home in Miami-Dade County increased by 23 and 28 percent, respeclively. In Palm Beach County existing single- family home sales activity peaked in 2003 with 15,417 sales at a median sale price of $241,300. The 2003 median sales price represented a 24 percent increase from 2002. In 2004 and 2005 the median sales price of an existing single-family home in Palm Beach County increased by 25 and 30 percent, respectively. In 2006 the year-end median sales price of an existing single-family home peaked in Broward ($367,800) and Palm Beach Counties ($384,700). In Miami-Dade County the year-end median sales price ($380,100) peaked in 2007. During 2006-2007 the level of sales activity plummeted in all three counties. While median sales prices peaked during this period, the level of sales activity from 2003 to 2007 decreased by 60 percent (6,127 units) in Broward County; 58 percent (5,289 units) in Miami-Dade County; and 55 percent (6,971 units) in Palm Beach County. FII'J I "c....: -, ) South Florida Workforce Housing Needs Assessment ,'.^'. ""..:~"-"'I!" ," "'~''''. ..' ,'- -,'. .. During the first 7 months of 2008 existing single-family home sales activity has continued to decline in all three counties with a coinciding decrease in the median sales price from 2007. Through July 2008, there have been 3,398 sales in Broward County with a 15.8 percent decrease ($305,400) in the median sales price. In Miami-Dade County there have been 2,250 sales through July with a 15.5 percent decrease ($320,900) in the median sales price. In Palm Beach County there have been 4,102 sales through July and a 10.4 percent decrease ($330,900) in the median sales price. New Single-Family Homes South Florida's "new" .single:-family home market has varied considerably from the existing single-family home market. The variance IS largely due to the locetion of new single-family home construction activity. In Broward County new single-family home sales activity peaked in 1997 (11,622 sales) during the height of the county:s wes~rd expa~sion and gradual, build-out. Broward County has since experienced a steady decrease In new single-family home sales With only 1,748 units sold in 2006 and 2,227 in 2007. The increase in sales during 2007 was attributed to higher-priced new construction activity in the H.ollywo?d/Hallandale/Pembroke Pines sub-market. New single-family home prices have been trending higher Since 2006. The median sales price of a new single-family home increased from $317,727 in 2005 to $533,490 in 2006, representing a 67.9 percent median price increase in one year. In 2007, the median sales price decreased slightly to $526,865 (1.2 percent decrease). In Miami-Dade Coun~, new s!ngle-family home~ sales peaked (12,749 sales) in 2005 and held steady in 2006. In 2007 new single-family home sales actiVity plummeted to 5,420 sales representing a 55.2 percent decrease. The median sales price reached a high of $356,813 during the Fourth Quarter of 2006. The median sales price in 2007 was $330,092 which represented a 7.2 percent decrease from 2006. The largest construction of activity occurred in the Perine/Culler Ridge sub-market. Pal~ Beach County's new single-family home sales peaked in 2003 (12,242 sales) and have steadily declined from 2004-2007. In 2007 there were 3,101 sales which were down from 7,865 sales (60 percent decrease) in 2006. A 37.5 percent drop in sales during the second quarter of 2007 was the largest decrease in sales since the downturn in the residential market began in the latter part of 2005. The 2007 median sales price of $476,031 represented a 4.3 percent decrease from 2006. The highest level of sales activity in 2007 occurred in the Boynton Beach and JupiterlTequesta/Juno Beach/Singer Island sub-market. Existing Condominiums South Florida's existing condominium prices and sales activity peaked later than the existing single-family home market. In Broward County the year-end median sale price increased from $189900 in 2005 to $208,600 in 2006 or 10 percent. However, in 2006 and 2007 existing condominiu~ sales activity plummeted wit~ the number of sold units decreasing from 13,253 in 2005 to 6,533 In 2007 or 50 percent. The 2007 median sales price of $187,600 represented an additional 10 percent decrease from 2006. In Miami-Dade County the year-end median sale price of an existing condominium increased from $255,100 in 16 .. ~ ~ ~~~i ... 2005 to $257,500 in 2006 and $272,000 in 2007. However, a significant decrease in sales activity was evident by 2006 with a more substantial decrease occurring in 2007. Miami-Dade County's existing condominium sales activity plummeted from 13,009 units sold in 2005 to 5,772 units in 2007, a decrease of 56 percent. In Palm Beach County the year-end median sales price of an existing condominium increased from $193,100 In 2005 to $220,400 in 2006 or 14 percent. Similar to Broward and Miami-Dade Counties, sales activity in Palm Beach County decreased significantly in 2006 and again in 2007 accompanied by a 10 percent decline in the median price to $198,000. Existing condominium sales activity in Palm Beach County decreased from 8,558 units sold in 2005 to 5,674 units in 2007 or 34 percent. While there has been some increase in monthly sales activity during the first 7 months of 2008, the overall sales of existing condominiums in South Florida is lower than 2007. Through July, 2008 there have been 3,364 existing condominium sales in Broward County, 3,041 sales in Miami-Dade County and 3,739 sales in Palm Beach County. Only in Palm Beach County are existing condominium sales on a pace to exceed 2007 sales activity. Existing condominium sales prices in South Florida have continued to decrease through the first 7 months of 2008. Palm Beach County has experienced the largest decrease ($156,400/ 21 percent decrease) among the Tri-counties followed by Broward ($153,000/18 percent decrease) and Miami-Dade ($263,900/3 percent increase) Counties. New Condominiums South Florida's "new" condominium sales activity peaked in 2005-2006 and subsided in 2007. In Broward County, new condominium sales activity has steadily decreased since 2006. Following a brief increase in activity during the first two quarters of 2006, activity sharply declined in the Third Quarter (55 percent decrease) of 2006 and has remained soft through 2007. New condominium sales activity decreased from 14,233 units in 2006 to 7,904 units in 2007, representing a 44.5 percent reduction in sales. The median sales price of new condominium units in Broward County increased significantly during 2006 and 2007 reflecting more upscale new construction and sales activity within an overall condominium market that has seen steady median price decreases. The median sales price of $265,891 in 2007 represented a 14.7 percent increase from 2006. During the Fourth Quarter of 2007, the highest number of sales was in the $250,000-$349,999 price range. In Miami-Dade County, new condominium sales activity peaked in 2005 and steadily decreased in 2006 and 2007. Sales decreased from 19,654 units in 2006 to 13,516 units in 2007, representing a 31.2 percent reduction in sales. Similar to Broward County, a rise in the median sales price in 2007 reflected more upscale construction and sales aclivity. The 2007 median sales price of $273,900 represented a 17.7 increase from 2006 with the highest number of sales during the Fourth Quarter occurring in the $350,000- $499,999 price range. nul"~~' 'UJUIMbIl_l1lJNI.lIIIrtUJl'n South FI~~~a Workforce Housing No;,ed,!!-ssessment ..~~.".,.,....~~,~-".~ - -., The small growth In South Flo widespread condominium co rental housing productIon activity. New condominium sales activity in Palm Beach County peaked during the first half of 2006 and then decreased in the second half and throughout 2007. There were 7,585 sales in 2006 followed by 4,647 sales in 2007, representing a 38.7 percent decrease. The $260,857 median sales price represented a 6.5 percent reduction in price from 2006. During the Fourth Quarter of 2007, the highest number of sales occurred in the $250,000-$349,999 price range. E. Rental Housing Market As previously discussed, growth in South Florida's rental housing market has been minimal in comparison to the homebuyer market. The small growth in South Florida's rental housing supply has been largely impacted by widespread condominium conversions during 2003-2005 and the general decline in new rental housing production activity. Rental housing produclion in the past two years has been limited to several Lower Income Tax Credit developments. In Broward County, rental housing starts decreased from a high of 3,978 units in 2003 to only 646 units in 2007. Rental housing completions have decreased from a high of 2,820 units in 2004 to 650 units in 2007. Recent rental housing development activity has largely occurred in the Pembroke Pines/Miramar sub- market. Broward County's rental vacancy rate in February 2008 was 5.5 percent which was up slightly from the previous year. The average monthly rent is currently $1,220 which is 1.1 percent higher than 2007. In Miami-Dade County, rental housing starts decreased from a high of 4,372 units in 2003 to 141 units in 2006. In 2007, Miami-Dade's rental housing starts increased to 741 units. Rental housing completions decreased from a high of 2,528 units in 2002 to 179 units in 2006. Completions also increased slightly in 2007 to 305 units. Rental development activity in 2007 occurred in the N.E.lN.W. Miami and Miami Lakes/Hialeah/Miami Springs/Flagler North sub-markets. Miami-Dade County's vacancy rate in February 2008 was a low 3.0 percent and down slightly from 3.5 percent in 2006. The average monthly rent of $1,216 is up 2.9 percentfrom 2007. In Palm Beach County, rental housing starts decreased from a high of 3,403 units in 2002 to only 50 un~s in 2007. Rental housing completions have decreased from a high of 3,713 units in 2002 to 128 units in 2007. The only recent rental housing development activity has occurred in the West Palm Beach sub-market. Palm Beach County's rental vacancy rate in February 2008 was 7.0 percent up from 5.8 percent the previous year. The average monthly rent is currently $1,189 which is 2.9 percent lower than 2007. South Florida's Tax Credit developments represent a significant share of the affordable housing supply. There are currently 120 Tax Credit developments in the Tri-counties totaling 24,115 rental housing units. The average monthly rents range from $771 in Miami-Dade County to $852 in Broward County. Vacancy rates are extremely low in Miami-Dade (0.5 percent) and Broward (1.4 percent) Counties. Palm Beach 17 " Table 3.3: Palm Beach County Single Family Affordablllty, 2007 Palm Beach County Single Family Affordablllty Gap 2007 ^2007 Affordable Median Aftordability Median HH Home Price @ Selling Price Number of Gap@ Municipality Income Median 2007 Sales 2007 Median Boca Raton $76,007 $326,194 $460,000 1.339 r $133,806 Boynton Beach $50,267 $215,729 $309,950 988 $94,221 Delray Beach $54,715 $234,833 $425,000 613 $190,167 Greenacres City $46,604 $200,019 $270,000 128 $69,981 Jupiter $69,317 $297,461 $420,000 637 $122.539 Lake Worth $37,890 $162,630 $297,000 97 $134,370 Palm Beach Garden $75,411 $323,622 $495,000 587 $171,378 Riviera Beach $40,510 $173,859 $183,000 54 $9,141 Royal Palm Beach $69,091 $296,529 $310,000 288 $13471 Wellington $88,652 $380,472 $401,000 588 $20.528 West Palm Beach $46,393 $199,096 $299,900 908 $100,804 Palm Beach County $61,200 $262,645 $362,250 7,756 $99.605 Source: FlU Metropolitan Center, U.S. Census Bureau, Bureau of Labor Statistics and Bankrate,com, 2008. Table 3.5: Palm Beach County Multi-Family Affordabllity, 2007 ^2007 Affordable Affordability Median HH Home Price Median Selling Number of Gap @ Municipality Income @ Median Price 2007 Sales 2007 Median Boca Raton $76,007 $325,590 $225,000 1,304 $100.590 Boynton Beach $50,267 $219,391 $200.000 708 $19,391 Oelrav Beach $54,715 $231,004 $145,000 978 $86,004 Greenacres City $46,604 $204,657 $163,000 186 $41,657 Jupiter $69,317 $308,871 $265,000 413 $43,871 Lake Worth $37,890 $163,334 $130,000 312 $33,334 Palm Beach Garden $75,411 $322,175 $219,000 278 $103,175 Riviera Beach $40,510 $165,295 $230,000 45 $64,705 Royal Palm Beach $69,091 $293,074 $190,000 129 $103,074 Wellington $88,652 $375,281 $240,000 140 $135,281 West Palm Beach $46,393 $201,660 $152,000 86 $49,660 Palm Beach County $61,200 $265,725 $199,000 6,408 $66,725 Source: FlU MetropoOtan Center. U.S. Census Bureau, Bureau of Labor Statistics and Bankrate.com. 2008. nul"~ South Florida Workforce Housing Needs Assessment ~......-.'1II'I;,-;f"",~,~,'J..:;-<.~7""~{';;-"'~;:~"~"'_---' Table 3.4: Palm Beach County Single Family Affordablllty, 2008 Palm Beach County Single Family Affordability Gap 2008 Affordable Medl8n Affordability ^2008 Median Home Price @ Selling Number ot Sales Gap@ Municipality HH Income Median Price 2008 2008 Median Boca Raton $78,341 $323,0691 $400,000 552 $76,931 Bovnton Beach $51,811 $195,0171 $265,000 460 $69,983 Oelrav Beach $56,396 $215,688 $365,000 256 $149,312 Greenacres City $48,035 $180,149 $170,000 48 $10,149 Jupiter $71,446 $289,773 $375,000 276 $85,227 Lake Worth $39,054 $135,308 $265,000 325 $85,227 Palm Beach Garden $77,727 $315,194 $428,500 152 $113,306 Riviera Beach $41,754 $145,986 $140,000 33 $5,986 Roval Palm Beach $71,213 $286,635 $242,500 118 $44,135 Wellington $91,374 $378,283 $381,000 252 $2,717 West Palm Beach $47,818 $174,907 $240,000 351 $65.093 Palm Beach County $60,736 $236,533 $315,000 3207 $78,467 Source: FlU Metropolitan Center. U.S. Census Bureau, Bureau of Labor Statistics and Bankrate,com, 2008, T bl 3 6 P I B h C M Iti F ^2008 Affordable Median Affordability Median HH Home Price @ Selling Price Number of Gap@ Municipality income Median 2008 Sales 2008 Median Boca Raton $78,341 $326,194 $178,000 569 $148,194 Bovnton Beach $51,811 $215,729 $157,500 324 $58,229 Oelray Beach $56,396 $234,833 $98,000 506 $136,833 Greenacres City $48,035 $200,019 $122,000 64 $78,019 Jupiter $71,446 $297,461 $251,850 210 $45,611 Lake Worth $39,054 $162,630 $73,500 148 $89,130 Palm Beach Garden $77,727 $323,622 $180,000 192 $143,622 Riviera Beach $41,754 $173,859 $163,000 27 $10,859 Royal Palm Beach $71,213 $296,529 $143,000 36 $153,529 Welllnqton $91,374 $380,472 $240,000 53 $140,472 West Palm Beach $47,818 $199,096 $96,000 398 $103,096 Palm Beach County $60,736 $262,645 $151,000 2830 $111,645 Source: FlU Metropolitan Center, U.S. Census Bureau, Bureau of Labor Statistics and Bankrate.com, 2008, 19 (. l ( ~ ~ - _ S!'uth.!:lorlda ~WorkforceJlouslng" Needs Assessment County has a significantly higher vacancy rate (7.4 percent) among Tax Credit developments which is reflective of the overall vacancies in the county's rental housing market. F. Housing Affordabllity Single-Family Homes A major finding in the 2006 and 2007 workforce/affordable housing needs assessments of Broward, Miami- Dade and Palm Beach Counties was the substantial gap created during South Florida's residential real estate boom in the median single-family home price - to - median household income ratio, an important economic indicator in determining the general health and viability of a local housing market. The needs assessments showed that the ratio widened from approximately 4:1 in 2003-2004 to greater than 7:1 during the height of appreciation during 2005/2006. Despite the overall decrease In home prices the current (July, 2008) m single-family prlce-te-median household Income ratio Is 5:1- 6:1 In B and Palm Beach Counties and over 7:1 In Miami-Dade County. As previously noted, the sharp increase in single-family home values in South Florida was largely due to external demand factors coupled with unbridled market speculation. During the height of the boom period (2003-2005) when single family home values in South Florida were appreciating an average of 25 percent per year, the median household income in South Florida was growing at only 2-3 percent annually. Since 2005, single-family home values in South Florida have steadily declined. Despite the overall decrease in home prices the current (July, 2008) median single-family price-te-median household income ratio is 5:1- 6:1 in Broward and Palm Beach Counties and over 7:1 in Miami-Dade County. An updated affordability analysis of the Tri-counties and larger municipalities, where the largest concentrations of the resident workforce reside, shows significant affordability gaps persist for single-family homes in most areas of South Florida. In Broward County, the affordability gap is currently $38,749 with much higher gaps in individual municipalities, including Fort Lauderdale ($178,129), Lauderhill ($110,170) and Davie ($114,106). Miami-Dade County's affordability gap ($145,123) is the largest among the three counties with extreme gaps in most municipalities. Palm Beach County's current affordabilily gap for a single-family home is $78,467 with the highest municipal gaps found in Delray Beach ($149,312), Palm Beach Gardens ($113,306) and Jupiter ($85,227). Due to the recent tightening of the mortgage credit market, affordability calculations now include a 20 percent down payment as part of the 6.5 percent fixed-rate, 3D-year mortgage. While a 20 percent down payment would reduce the homebuyer's monthly payment, the upfront cost coupled with a tightened mortgage market creates added obstacles to affordable home purchase. "I "'='" . ...;: 18 I - ) Table 3.7: Broward County Single Family Affordabillty. 2007 ^2007 MedIan HH Affordable Home Med,.n Selling Number of Affordablllty MUnicipality Income Price @ Median Price 2007 Sales 2007 Gap @ Median Coral Sorlna. $73,750 $295,841 $405,000 720 5109,159 D.vle 559,311 5226 597 $395 000 547 5168,403 Deerfleld Beach 542 945 5151 232 5300,000 215 $148,768 Fort Lauderdale 547797 $175202 $370,000 932 $194 798 Hallandala Baach $35 659 $119.632 $272 500 48 $152866 HolJvwood 546 317 $165 502 $280,000 713 $114,498 Laudardala Laka. $33.977 $109893 $265,000 71 $155.107 Laudarhlll 541 020 $142423 $278 000 129 $135577 Mlramar $63 443 $245 281 $375000 669 $129,719 Pambroka Pine. $66 395 $260417 $374000 892 $113583 Plantation $67 804 $267,530 $385,000 409 5117.470 Pomoano Beach 545 508 $165548 $257 500 382 $91 952 Sunrl.a $51 722 $191,475 $294,950 390 $103475 Wa.ton $101.291 5431.148 $540 000 628 $106852 Braward County $58400 $223.567 $385,000 8918 $161 433 Source: FlU MetropoHtan Center. U.S, Census Bureeu, Bureau of Labor Statistics and Bankrate, com, 2008. Table 3.9: Broward County Multi Famlty Affordablllty, 2007 ^2007 Affordable Median Affordability Median HH Home Price @ Selling Price Number of Gap@ Municipality Income Median 2007 Sales 2007 Median Coral Springs $73,750 $316,512 $179,950 406 $136,562 Davie $59,311 $254,557 $205,500 340 $49,057 Deerfield Beach $42,945 $184,313 $110,000 704 $74,313 Fort Lauderdale $47,797 $205,121 $329,000 1209 $123,879 Hallandale Beach $35,659 $153,052 $215,000 539 $61,948 Hollywood $46,317 $198,784 $200,000 674 $1,216 Lauderdale Lakes $33,977 $145,797 $97,000 141 $48,797 Lauderhlll $41,020 $176,026 $113,450 350 $62,576 Mlramar $63,443 $272,275 $259,950 273 $12,325 Pembroke Pines $66,395 $284,944 $190,000 737 $94,944 Plantation $67,804 $290,972 $186,500 376 $104,472 Pompano Beach $45,508 $195,287 $191,000 711 $4,287 Sunrise $51,722 $221,962 $105,000 534 $116,962 Weston $101,291 $434,703 $255,000 232 $179,703 Broward County $58,400 $250,643 $190,000 9259 $60,643 Source: FlU Metropolitan Center. U.S. Census Bureau, Bureau of Lebor Statistics end Bankrate,com, 2008. ) ~) South Florida Workforce Housing Needs Assessment - - - , ---.--- . _.~ . Table 3.8: Broward County Single Family Affordablllty, 2008 Affordable Median ^ 2008 Median Home Price @ Selling PrIce Number of Affordablllly Municlpahty HH Income Median 2008 Sales 2008 Gap @ Median Coral Sorlnn. $76.015 $306251 $345,000 304 $38.749 DavIe $61133 $234.814 $349000 173 $114.186 Deerfleld Beach $44,264 $157194 $240 000 79 $82,806 Fort Lauderdale $49,265 $181871 $360,000 371 $178.129 Hallandale Beach $36,755 $124602 $194 900 21 $70.298 Holluwnod $47740 $171 864 $240000 273 $68.136 Lauderdale Lakes $35.020 $114591 $174,500 19 $59.909 Lauderhlll $42.280 $148830 $259,000 43 $110,170 Mlramar $65 391 $254 107 $311 383 246 $57,276 Pembroke Pine. $68 434 $269 727 $317,000 318 $47,273 Plantation $69 887 $277 082 $339 900 153 $62,818 Pomoano Beach $46,906 $171,969 $199,000 147 $27,031 Sunrise $53310 $198,697 $223 500 132 $24,803 Weston $105,221 $449,494 $421,000 261 $28,494 Broward Countv $54,211 $204 473 $300 000 3281 $38749 Source: FlU Metropolitan Center, U.S. Census Bureau. Bureau of Labor Statistics end Bankrate,com, 2008. Table 3.10: Broward County Multi Family Affordability, 2008 ^2008 Affordable Median Affordabihty Median HH Home Price Selling Price Number of Gap@ Municipality Income @ Median 2008 Sales 2008 Median Coral Springs $76,015 $326,243 $125,500 112 $200,743 Davie $61,133 $262,339 $167,500 75 $94,839 Deerfleld Beach $44,264 $189,977 $66,000 344 $123,977 Fort Lauderdale $49,265 $211,407 $299,900 497 $88,493 Hallandale Beach $36,755 $157,741 $200,000 252 $42,259 Hollywood $47,740 $204,866 $216,000 243 $11,134 Lauderdale Lakes $35,020 $150,277 $65,000 54 $85,277 Lauderhlll $42,280 $181,433 $70,750 96 $110,683 Mlramar $65,391 $280,620 $195,000 84 $85,620 Pembroke Pines $68,434 $293,697 $115,000 250 $178,697 Plantation $69,887 $299,930 $161,500 96 $138,430 Pompano Baach $46,906 $201,309 $161,500 338 $39,809 Sunrise $53,310 $228,807 $55,000 199 $173,807 Weston $105,221 $451,547 $200,000 55 $251,547 Broward County $54,211 $232,670 $150,000 3,383 $82,670 Source: FlU Metropolitan Center, U.S. Census Bureau, Bureau of Lebor Statistics and Bankrate.com, 2008. 20 nul ....... 'l.GUWaIol_11OMLl/IIlrf"PIf1'l South~l'lo~d'!.. W_o.!!<fo~'!llousln91'e!d!.. A!,s,:ssmenl --- - - Miami Dode County Single FamIly Affordabillty Gap ~007 ^2007 Median Affordable Homo Med,"n Selling Number of Afford.blllty MUnicipality HH Income Pnce @ Median Price 2007 Sales 2007 Gap @ Median Aventu'" $53,613 $204,746 $769 000 25 5564,254 Co",1 Gables $80 479 $324,949 $849 000 329 5524,051 HIaleah $35511 $117 945 $339 900 284 5221.955 Hialeah Gardens $48,788 $187281 $320.000 29 5152,719 Homestead $32,239 5101 545 $285.000 448 $183,455 City of M18m1 $29 266 $87,470 $365,000 3992 5277,530 Miami Beach $32 898 $132625 $1,250000 161 51,117.375 Miami Gardens $45 782 $162328 $262 500 176 $100172 MiamI Lakes $73 626 5295 060 $545,000 91 $249,940 North Miami $35 855 $115,782 $299.900 129 5184,118 North Miami Beach $37,780 $124,297 $285,000 133 $160,703 Mlaml.Dade County $45,200 $158876 $385 000 6984 $228 124 Source: FlU Metropolitan Canter. U.S. Census Bureau, Bureau of Labor Statistics and Bankrate,com, 2008. Table 3.13: Mlami.Dade County Multi Family Affordablllty, 2007 Affordable Median '2007 ME>dldn Homt' Price @ Sellmg Price Numb!!r of Affordablhty MuniCipality HH Incomo Median 2007 Sales 2007 Gap @ Median Aventura $53,613 $214,714 $325,000 560 $110,286 Coral Gables $80,479 $334,916 $355,000 99 $20.084 Hialeah $35,511 $127,912 $185,000 273 $57,088 Hialeah Gardens $46,788 $177,248 $206,500 40 $29,252 Homestead $32,239 $111,512 $163,750 151 $52,238 City of Miami $29,266 $97,437 $230,000 2570 $132,563 Miami Beach $32,898 $141,163 $340,000 1075 $198,837 Miami Gardens $45,782 $172,295 $164,100 39 $8,195 Miami Lakes $73,626 $305,028 $250,000 89 $55,028 North Miami $35,855 $125,750 $158,250 690 $32,500 North Miami Beach $37,780 $134,264 $160,000 181 $25.736 Mlaml.Dade County $45,200 $168,843 $265,000 6358 $96,157 Source: FlU Metropolitan Center, U.S. Census Bureau, Bureau of Labor Statistics and Benkrate.com, 2008. FlU I 1 c.w 1;;..._ _ '....-I..l~\IIlI\'lISt1l' -- --- -..- ---- ----..-. Table 3.12: Miami-Dade County Single Family Affordabllity, 2008 Miami Dade County Single Family Affordability Gap 2008 ^2008 Affordable Median Affordability Median HH Home Price @ Selling Price Number of Gap@ Municipality Income Median 2008 Sales 2008 Median Aventura $54,738 $209,971 $625,000 12 $415,029 Coral Gables $82,168 $332,631 $665,000 128 $332,369 Hialeah $36,256 $121,318 $265,000 84 $143,682 Hialeah Gardens $47.770 $171,710 $295,000 8 $123,290 Homestead $32,916 $104,561 $220,000 154 $115,439 City of Miami $30,843 $94,663 $285,000 1222 $190,337 Miami Beach $33,588 $108,206 $1,400,000 59 $1,291,794 Miami Gardens $48,315 $173,690 $200,000 34 $26,310 Miami Lakes $75,171 $302,176 $380,000 28 $77,824 North Miami $36,607 $119,136 $217,500 34 $98,364 North Miami Beach $38,573 $127,807 $194,000 33 $66,193 Miami-Dade Countv $46,549 $164,877 $310,000 2188 $145,123 Source: FlU Metropolitan Center, U, S, Census Bureau, Bureau of Labor Statistics and Bankrate.com, 2008. ^200() ~""caldn Alro~dJlllr Horn' 1'1 U 10 S.,lln q r'hJIt'Dl rot AftorualJlllty Gap MUniCipality HH Income Price lW r.lectlan PriCE; 2.0IJD 5ales 2008 iw Median ~ Aventura $54738.00 $220 038.00 $299 000.00 275 $78 962 Co",1 Gables $62 168.00 $342 598.00 $445 000.00 31 $102402 Hialeah 536 256.00 $131 285.00 $150000.00 55 $18715 Hialeah Gardens $47770.00 $181 677.00 $203 950.00 10 $22 273 Homestead $32,916.00 $144,528.00 $120 000.00 49 $24 528 Cltv of MiamI $30 843.00 $110827.00 $220 000.00 814 $109173 MiamI Beach $33 588.00 $118174.00 $360 000.00 197 $241,826 Miami Gardens $48315.00 $183657.00 $73 250.00 4 $110407 Miami Lakes $75,171.00 $312143.00 $232 600.00 20 $79 643 North MiamI $36 607.00 $129103.00 $104000.00 34 $25 103 North Miami Beach $38 573.00 $137774.00 $134950.00 41 $2,824 Miami-Dade County $46 549.00 $174845.00 $289 000.00 2362 $114155 Source: FlU Metropolitan Center, U.S. Census Bureau, Bureau of Labor Statistics and Bankrate.com, 2008, . 21 -, Condominiums As previously noted, existing condominium sales prices in South Florida have continued to decrease through the first 7 months of 2008. Price decreases range from 3 percent in Miami-Dade County to 21 percent in Palm Beach County. New condominium unit prices increased in 2007 in Miami-Dade County (17.7 percent) and Broward County (14.7 percent) and decreased slightly in Palm Beach County (6.5 percent). While the overall price of existing condominiums has steadily decreased in the past two years, the level of affordability Is somewhat arbitrary due to increasing monthly condo fees and maintenance costs. In Broward County, there is an $82,670 affordability "surplus" based on the current (July, 2008) $150,000 median sale price of an existing condominium. However, substantial affordability gaps remain in Fort Lauderdale ($88,493), Hallandale beach ($42,259) and Hollywood ($11,134). In Miami-Dade County, affordability gaps are more widespread. There is currently a $114,155 gap at the county level based on a median sale price of $289,000. Further, substantial gaps exist in Miami-Beach ($241,826), City of Miami ($109,155) and Coral Gables ($102,402). Inn Palm Beach County, an affordability surplus of $111,645 exists at the county level based on a current median sale price of $151,000. No affordability gaps currently exist in Palm Beach County's major municipalities. Rental HousIng Previous workforce housing needs assessments have found that South Florida's rental housing inventory is the principal source of available and affordable housing for low- and moderate-income households. This is due to the fact that 60-65 percent of South Florida's renter households earn less than 50 percent of their respective area median income (AMI). Significantly, 85-90 percent of renter households earning less than $35,000 per year are cost-burdened (paying rent in excess of 30 percent of gross monthly income). The significant Increase In "vacant seasonal" homes in South Florida since 2000 has impacted both the availability and affordability of rental housing. Decreasing vacancy rates in many locations have resulted in rising rent prices. In fact, rent affordabifity gaps are substantial in many municipalities with high concentrations of the resIdent workforce.As previously noted, the average rent in South Florida's Tri-counties has increased significantly since 2000. Despite general decreases in housing prices, average rents in Broward ($1,220) and Miami-Dade ($1,216) Counties increased during the past year and decreased only slightly in Palm Beach County ($1,189). ~ J -, South Florida Workforce Housing Needs Assessment ~ -.--.---..... Rent affordBbifity gaps are substantial in many municipal with high concentrations of the resident workforce. Table 3.15: Rental Affordabllltv by County. 3rd Quarter 2008 Median Low Monthly Affordable Household Income Household Rent@ 30% Mean Affordablllty County Income 50% AMI Income of Income Rent Gap @ Median Broward County $54,211 $27,106 $2,259 $678 $1,222 $544 Miami-Dade County $46,549 $23,275 $1,940 $582 $1,212 $630 Palm Beach County $60,736 $30.368 $2,550 $765 $1,180 $415 Moderate Median Income Monthly Affordable Household 50%..80% Household Rent @ 30% Mean Affordablllly County Income AMI Income of Income Rent Gap @ Median Broward Counlv $54,211 $43,369 $3,614 $1,084 $1,222 $138 Miami-Dade Counlv $46,549 $37,239 $3,103 $931 $1,212 $281 Palm Beach County $60,736 $48,589 $4,080 $1,224 $1,180 $44 Source: Reinhold P. Woflf:f" Quarter 2008, FlU Metropolitan Center, U.S. Census Bureau and Bureau of Labor Statistics. 22 - South Florida Workforce Housing Needs Assessment - - - - -- - - - ----=.J G" other Affordability Factors Prior housing needs assessments have shown that South Florida's housing affordability issues are the result of a combination of supply and demand factors. On the supply side of the equation, unbridled high-end residential development and speculative investment created an "oversupply" of new housing priced out-of-reach of most working households. This was coupled with the loss of a significant portion of the rental housing inventory through condominium conversions. On the demand side, working households in the service sector of the regional economy, which comprises South Florida's largest employment base, had incomes that remained relatively stagnant during the height of the building boom. As a result, the level of housing cost-burden among full-time working households in these fast-growing but low-wage occupations steadily worsened. South Florida's housing market downturn has exacerbated what was already considered to be an affordable housing crisis. Increasing job loss and rising unemployment attributed to the spillover effects of the housing bust has made it increasingly difficult for many working households in South Florida. Housing foreclosures are currently impacling most neighborhoods in South Florida and the pipeline continues to grow with new delinquencies. Reports are now beginning to show that in addition to the subprime lending problem, a rise in both mortgage and overall debt is evident. Contributing to this problem is that many lenders severely relaxed loan-to-value ratios to attract customers. In addition, many households have substituted mortgage debt for other debt, using home equity loans and lines of credit to payoff credit cards and other expenses. By the Federal Reserve's measure, nominal consumer debt rose by 21 percent between 2002 and 2006, while mortgage debt was up by 62 percent. As house prices climbed during the recent boom, homeowners used their equity gains to add nearly equal amounts to their debt rather than strengthen their balance sheets. Meanwhile, American Housing Survey estimates indicate that the share of homeowners with negative net equity (owing more than their homes are worth) was already over three percent in 2005, and up to 13 percent among owners that had bought in the prior two years. FlU I ""='":... - - --=--=- t~_&IoIIlJl,U1ONLVIII........-n -- - --- --- ---. -- . -- - --=-. ==-==-..::. - .:. ==- -:- 23 J -, 1 ",..- ~ '" H' ~,,~........ "'^' .,...... ",.. South Florida Workforce Housing Needs Assessment ~ ' ",...__, .7...".... .. ~ Figure 3.1: South Florida Foreclosures by County H. Home Foreclosures Broward ., Bank Owned The national home foreclosure crisis and accompanying economic effects have impacted most states. However, much of fallout from foreclosures is being driven by the level of activity among a few states including the State of Florida. According to the Mortgage Bankers Association (MBA) National Delinquency Survey for the First Quarter of 2008, Florida has the highest "seriously delinquent" and "foreclosure inventory" rates in the country. Second Quarter 2008 statistics showed an increase in foreclosure activity from 2007. Foreclosure actions include default notices, auction notices and bank possessions or REOs. Foreclosure actions in Florida involved 12.82 per 1,000 households, an increase of 181.8 percent from the Second Quarter of 2007. In addition, July, 2008 figures from the Federal Reserve Bank show 20.4 percent of Florida's subprime mortgages in foreclosure, a 2.4 percent increase from last year. Future prOblems also exist as 60.4 percent of subprime mortgagees show at least one late payment in the past 12 months and 38.6 percent will have adjustable rate mortgage (ARM) resettings in the next 12 months. Mlam~Dade Palm Beach In South Florida, each of the Tri-counties was included In the "Top 20" metropolitan areas in the country with the highest foreclosure rates in the Second Quarter, 2008. The Fort Lauderdale MSA with a 19.53 foreclosure rate per 1,000 households ranked 6'" in the country followed by the Miami (16.01/ranked 10"') and Palm Beach (11.321ranked 18t") MSAs. The rise in home foreclosures in South Florida is the result of several factors, including the proliferation of the sUbprime lending market during the height of the building boom, speculative investment and predatory lending practices. South Ro,lda Region 2 ,506 46,881 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Source: Rea/tyTrac, 2008. The home foreclosure crisis exacerbated an already volatile market in South Florida brought on by an oversupply of price-inflated housing. Foreclosure auctions and the downward pressure they create as banks try to unload distressed properties have depressed sales prices in neighborhoods and municipalities. In addition, "short sales," wherein lenders often forgive the remaining debt on a home to complete the sale and list properties with an asking price below the amount due on a mortgage, have further depressed surrounding home values. while no county or municipality in South Florida has been spared from the rampant increase in home foreclosures, there are discernible spatial concentrations of foreclosure aclivlly. In all three counties, the level of foreclosure activity is generally highest in zip codes that experienced significant levels of new housing construction during the South Florida building boom. In Miami-Dade County, the highest level of foreclosure activity has occurred in the areas in and around Homestead, Hialeah, Miami Lakes and SW Miami-Dade County. In Broward County, the highest foreclosure activity has occurred in Miramar and Pembroke Pines. Other areas with high levels of activity include Lauderdale Lakes, Margate and the western neighborhoods of Pompano Beach. In Palm Beach County, the highest levels of activity have occurred in Royal Palm Beach, Wellington, Greenacres and the western neighborhoods of West Palm Beach. Table 3.16: South Florida Foreclosures by County and Zip Code The rise In home foreclosures In South Florida Is the result of several factors, Including the proliferation of the subprlme lending market during the height of the building boom, speculative Investment and predatory lending practices. Bank Zipcode County Pre.foreclosures Zipcode County Owned 33015 Miami-Dade 650 33033 Miami-Dade 480 33033 Miami-Dade 649 33032 Miami-Dade 314 33176 Miami-Dade 544 33177 Miami-Dade 300 33157 Miami-Dade 539 33160 Miami-Dade 296 33177 Miami-Dade 532 33131 Miami-Dade 295 33025 B roward 852 33064 Broward 762 33065 Broward 776 33025 Broward 464 33023 Broward 775 33313 Broward 443 33068 Broward 728 33065 Broward 435 33321 Broward 706 33063 Broward 384 33411 Palm Beach 779 33411 Palm Beach 239 33463 Palm Beach 622 33414 Palm Beach 161 33414 Palm Beach 518 33463 Palm Beach 147 33415 Palm Beach 470 33470 Palm Beach 126 33409 Palm Beach 434 33415 Palm Beach 127 Source: Rea/tyTrac, 2008, nul"~"'- 24 Figure 3.2: Palm Beach County Home Foreclosures, July 2008 2008 Foreclosure Activity by Zip Code - 0- 218 o 219.385 D 386 - 535 - 536 . 760 - 761 - 1370 Source: RealtyTrac, 2008. Map Created by the FlU Metropolitan Center. ..I".,..... .---- rUIUWlKT~~ South Florida Workforce Housing Needs Assessment " .:~,"~I':'~'c~__ ____~ ~'., ~,,;'_~~"'-<:'~- "'!'l,(~~~,: :i-~. '----. ----- · 25 - '""\ , ) -; Figure 3.3: Broward County Home Foreclosures, July 2008 South Florida Workforce Housing Needs Assessment ~ 2008 Foreclosure Activity by Zip Code Source: RealtyTrac, 2008. Map Created by the FlU Metropolitan Center. FlU I "="" . 'LOIIl:MlIlT~lh<<YIAfnf 26 - - South Florida Workforce Housing Needs Assessment -- ------ -- -- --. . --- .. - -- - ..... Figure 3"4: Miami-Dade County Home Foreclosures, July 2008 2008 Foreclosure Activity by Zip Code - 0.58 - 59 - 184 ~ 185 - 362 - 363 - 597 - Source: Rea/tyTrac, 2008, Map Created by the FlU Metropolitan Center. ..,......... . . -- -- - ------ ---- 21 'l.O_lIlltMliT-..&.~ - -, -, , ,.. ow. ...-.....,=. ~- ....... ........"....~w< . " ,,_ .- "'"" IV South Florida's "Best Practice" in Workforce Housing A" Background The growing demand and shrinking supply of affordable workforce housing became the top public policy issue In South Florida in recent years. Local housing studies have documented the extent and ramifications of South Florida's three-year (2003-2005) housing boom that resulted in a severe shortage of workforce housing and extreme affordability gaps for all housing types. The studies have shown that South Florida's workforce housing supply and affordability mismatch was exacerbated by speculative Investment that resulted in multiple conversions of rental units to condominiums and an overall development trend in recent years toward a more upscale housing demand external to the local market. In the past two years, South Florida has had to endure the collapse of a highly speculative housing market that was clearly an inflated bubble. In the aftermath, South Florida communities are now beset with unstable market conditions including rising home foreclosures and a credit tightening that have essentially paralyzed the local housing market despite steady decreases in housing values during the past year. During the past three years the Metropolitan Center at Florida International University (MC/FIU) has worked with the Broward Housing Partnership (BHP), Greater Miami Chamber of Commerce (GMCC) Workforce --, South Florida Workforce Housing Needs Assessment ,~".-o~.:,o,~_........ . Housing Committee and Housing Leadership Council of Palm Beach County (HLC/PBC) in assessing the workforcelaffordable housing needs of their respective counties. In the past year, the MC/FIU worked with the county partnerships to develop a "scorecard" mechanism to evaluate the performance of local governments, county and municipal, in addressing their workforce housing needs. A performance evaluation tool, the Municipal Scorecard for Affordable Housing Delivery@ (MS-AHD) model, was created to monitor and evaluate the progress of local governments in developing and implementing workforce/affordable housing policies and building management and institutional capacities to address these issues long-term. The MS-AHD implementation in Broward and Palm Beach Counties enabled the MC/FIU to assess the progress of the counties and larger municipalities during the past year. The MS-AHD also enabled the MC/AHD to highlight local governments that could serve as "best practice" examples in South Florida for other local govemments to emulate and perhaps replicate within their local context. The following sections summarize the MS-AHD assessments in Broward and Palm Beach Counties and highlights specific workforce housing "best practice" efforts that have been initiated. South Florida's workforce housing supply and affordablllty mIsmatch was exacerbated by speculative Investment that resulted In multiple conversions of rental units to condominiums and an overall development trend In recent years toward a more upscale housing demand external to the local market. mlu~. 28 - - South Flo~ork~!."~~uslnglleeds.-A:s!essmen~ B. The Municipal Scorecard for Affordable Housing Delivery@ The Municipal Scorecard for Affordable Housing Delivery@ (MS-AHD) model was created to provide a systematic and comprehensive approach toward the policy development, implementation and performance evaluation of workforce/affordable housing initiatives at the local level. The expectation Is that in order for local govemments to address the urgency, complex~ies and long-term commitment to workforce/affordable housing issues there is the need to institute a systematic, comprehensive and performance-based approach. The MS-AHD's systematic and comprehensive approach is a "strategy" linked to a set of Objectives (processes) and measures to evaluate performance (outcomes). The initial application of the MS-AHD model identified and mapped the lead indicators (processes) and guideposts to determine the extent to which local govemments in South Florida had adopted systematic and comprehensive approaches to their workforcelaffordable housing needs. The identification and mapping of lead indicators that serve as the "drivers" of performance is the critical first step in performance evaluation as lead indicators are predictive in nature. The following are the guiding principals of the MS-AHD model: 1) Each municipality has a "resident workforce" that is integral to the character of each community and a "commuter workforce" that supports the local economy; 2) The creation of an effective response to workforce/affordable housing needs requires solutions being developed and implemented at both the municipal and county levels of local govemment; 3) An effective policy response will necessitate a coordinated and integrated approach to affordable housing production and preservation; 4) Current federal and state programs are insufficient both in terms of funding and lack of coordination and integration with other important government layers that control or influence the delivery of affordable housing, including land use planning, zoning and community redevelopment activities; 5) Local workforce/affordable housing programs and initiatives must be performance-driven nu I "="" .- - Method%gy The MS-AHD model consists of four (4) interrelated and mutually- supporting workforce/affordable housing delivery 'process criteria: The four processes provide the basis for a systematic and comprehensive workforce/affordable housing delivery system. Together these processes aim to provide the essential policy skills and leadership, management commitment, dedicated funding and on-going institutional capacity-building to enable the successful development and implementation of a sustainable workforce/affordable housing delivery system. Further, the MS-AHD serves as a performance measurement tool that can evaluate the effectiveness of a municipality in designing and implementing a workforce/affordable housing delivery system. The expected outcome of this approach (strategy) should be a sustained level of workforcelaffordable housing production and preservation. The Municioal Scorecard for Affordable HousinQ Delivery@ Model .. Policy & Management .. Institution Building + Planning & Land Use t. Oedlcated Funding ..t The MS-AHD methodology involves an assessment of current policies, plans and other initiatives that each municipality has adopted to address their workforce/affordable housing needs and issues. The assessment includes a review of each municipality's Comprehensive Plan and recent Comprehensive Plan Evaluation and Appraisal Report (EAR). The review also includes HUD-Consolidated Plans, Local Housing Assistance Plans (LHAPs) and Community Redevelopment Area (CRA) Plans, where applicable. The methodology also includes an interview component with relevant city/town departments and agencies, including Planning and Zoning, Housing and Community Development and Community Redevelopment Agencies (CRAs). ..--- -- 1) Policy and Management Process Effective policy and professional management are Inseparable in an effective affordable housing delivery system. Coherent policy direction and sound management practice are essential. Clear policy direction will include a commitment to professional management capacity and resources. Organizational and professional management capacity are important requisites for the effective planning and implementation of affordable housing strategies. An effeclive policy and management process for affordable housing delivery will demonstrate clear policy direction and professional management capacity resulting in measurable affordable housing production and preservation initiatives. POlicy and Management Assessment The adoption of a comprehensive local workforce/affordable housing policy and the implementation of a coordinated and integrated housing management system are potential outcomes of an effective policy and management process. A comprehensive workforce/affordable housing policy must specifically address each of the other interrelated elements of the MS-AHD model - Planning and Land Use, Dedicated Funding, Institution Building. Therefore, the MS-AHD policy and management assessment would first determine whether a comprehensive and overarching workforcelaffordable housing policy has been adopted, and secondly, whether the necessary professional management resources have been inputted to effectively support the implementation of the workforce/affordable housing policy. Absent a comprehensive local workforcelaffordable housing policy, the MS-AHD assessment targets a municipality's various housing sub- policies - HUD Consolidated Plan, Comprehensive Plan and Community Redevelopment Plan. The coordination and integration of these planning policies, including their level of management capacity, are critical in the State of Florida as together these plans currently determine the extent of workforce/affordable housing produclion and preservation at the municipal level. 2) Planning and Land Use Process Effective planning and land use will contribute to both policy formulation and strategy implementation in an affordable housing delivery system. Planning will inform policy and then create appropriate land use changes to promote affordable housing development opportunities. As such, the MS-AHD model determines whether planning is being used as a vehicle for informing affordable housing policy decisions and a means for implementing affordable policy strategies. An effeclive planning and land use process for affordable housing delivery will also integrate workforce/affordable housing with related planning initiatives involving economic development, transportation and capital improvements. 29 -, .',~ ,"'_"',"H.~__~~ ",__ ~,.-._~ .,..,,. ,..,.,.", Planning and Land Use Assessment Land use and zoning changes that would provide new opportunities and incentives for affordable housing production and preservation are potential outcomes of an effective planning and land use process. A municipality's Comprehensive Plan can be an effective tool for developing and implementing workforce/affordable housing policies and strategies. However, it is important that correlations are identified between the required Housing Element and other key elements of the Comprehensive Plan. Specifically, how do the policies and objeclives of the Housing Element correlate with the policies and objectives of the Future Land Use, Public Facilities, Transportation and Capital Improvements Elements and certain "optional" elements such as Economic Development which can provide the necessary planning for expanded employment opportunities for the local workforce. The Planning and Land Use assessment also determines the level to which a municipality's HUD Consolidated Plan, Local Housing Assistance Plan (LHAP) and Community Redevelopment Area (CRA) Plan are coordinated and Integrated with the Comprehensive Plan to provide clear visioning and strategies for workforce/affordable housing production and preservation. The HUD Consolidated Plan, LHAP and CRA Plan provide many of the important financing tools for workforcelaffordable housing development. 3) Dedicated Funding Process The MS-AHD model includes a process for developing and sustaining a local, dedicated funding source for workforcelaffordable housing. Workforce/affordable housing policies and strategies must be supported by a long-term dedicated funding stream. A local dedicated funding source shows government commitment and an assurance that planned affordable housing opportunities are realized. A dedicated funding process for affordable housing delivery will also include support to countylcity departments and other housing agencies responsible for implementing affordable housing policies and strategies. Dedicated Funding Assessment The establishment of a housing trust fund or a workforcelaffordable bond issue are potential outcomes of a local dedicated funding process. Local dedicated funding includes long-term support for a variety of workforcelaffordable housing development strategies including land acquisition, construction financing and housing rehabilitation/preservation. Dedicated funding also includes staff support for departments and agencies responsible for the planning and management of workforce/affordable housing programs and services including outside non-profit housing development organizations. nul"~ J The earmarking of CRA tax increment financing (TIF) funds is a potential "short-term" dedicated funding source for workforcelaffordable housing development. While the funding is limited to designated community redevelopment areas, there is substantial fleXibility in the use of TIF funds to support workforcelaffordable housing development activities. Likewise, larger municipalities have access to various federal and state housing funds, e.g. Community Development Block Grant (CDBG), HOME, and State Housing Initiatives Program (SHIP), which can be piggybacked and combined with local housing financing tools to address workforce laffordable housing needs. Federal and State programs also provide support for the on-going planning and management of local housing programs. Newly allocated Neighborhood Stabilization Program (NSP) funds should also be targeted and leveraged with existing housing resources. 4) Institution Building Process Institution building is seen as an important long-term process for addressing a community's affordable housing needs. Sustainable affordable housing policy and strategies will include on-going institutional capacity building among local government, business and Industry, educational institutions and community-based organization (CBOs). This effort includes the development of formal public/private partnerships and the collaboration of all key stakeholders. Institution building includes the development and leveraging of local financing resources, expanding the functions of non-profit housing organizations and the development of employer assisted housing (EAH) programs and strategies. Institution Bui/ding Assessment The formation and active engagement of working public/private partnerships involving key stakeholders and employer assisted housing (EAH) programs are potential outcomes of a local institution building process. The MS-AHD model determines the extent to which municipalities have formally engaged the private seclor - business and industry - and community-based nonprofit organizations in developing and implementing workforcelaffordable housing policies and strategies. The model also assesses the extent to which individual municipalities have expanded in-house capacity to improve the rnanagement of workforcelaffordable housing programs, including the leveraging of local financing resources with non-profit housing developers and private lending consortia. -, South Florida Workforce Housing Needs Assessment ....,.,.."_.- "''''~~~:.2!!I::;y,. ,.. ,,' , ._- ". -iii C" General Findings As previously noted, the MS-AHD model was applied in both Broward and Palm Beach Counties as part of the 2007 Affordable Housing Market Updates prepared on behalf of the Broward Housing Partnership (BHP) and Housing Leadership Council of Palm Beach County (HLC/PBC). The following is a summation of the key findings: Policy and Management Assessment · County and municipal governments in Broward and Palm Beach Counties lack a comprehensive and systematic policy approach to workforce/affordable housing issues; · While lacking a comprehensive and systematic approach, a significant number of local governments have begun to address their workforce/affordable housing needs through policy changes within the Comprehensive Plan, including recent EAR- based amendments; · Most local governments do not effectively integrate changes to the Housing Element of their Comprehensive Plans with other critical elements such as Future Land Use, Public Facilities, Transportation, Economic (optional) and Capital Improvements; · Few local governments correlate policy initiatives in their Comprehensive Plans with housing and development policies within their respective HUD Consolidated Plans, Local Housing Assistance Plans (LHAPs) and Community Redevelopment Area (CRA) Plans; · The local delivery of workforce/affordable housing poliCies and programs are typically fragmented among each local government's Housing and Community Development and Planning & Zoning Departments and Community Redevelopment Agencies (CRAs); · Combining in-house management and operational functions is generally problematic in local affordable housing delivery systems; 30 . Local govemments that have made progress in addressing their workforce/affordable housing needs demonstrate a discernible level of coordination and communication among key departments and agencies; . While many local governments have instituted "expedited" permitting processes, a comprehensive single-application process for workforce/affordable projects is non-exlstent; . Several local govemments "fund" impact fee waivers for workforce/affordable housing projects, but actual impact fee waivers are prohibited by state govemment regulation. Planning and Land Use Assessment . Local governments that have made strides in addressing their workforce/affordable housing needs have generally undertaken coordinated, inter-departmental and inter-agency planning efforts to implement their workforce/affordable housing polices; . Coordinated and integrated planning efforts generally include recent EAR-based amendments involving Future Land Use and Transportation Elements and accompanying Unified Land Development Regulations; . Local governments that have been pro-active in workforce/affordable housing production have inventoried and identified publicly-owned real property in accordance with Chapter 166.0451, Florida Statutes, Disposition of Municipa/ Property for Affordab/e Housing; . Effective planning coordination and integration typically includes HUD Consolidated Plans, Local Housing Assistance Plans (LHAPs) and Community Redevelopment Area (CRA) Plans; . Local governments have not effectively addressed economic and industrial planning issues in conjunction with their workforce/affordable housing policies and initiatives; . Several local governments have made efforts to expand mixed- use and transit oriented development (TOD) opportunities to accommodate economic development and mixed-income, workforce housing projects. FRlI~- Dedicated Funding Assessment . Few local governments have developed a local dedicated funding source for affordable housing, instead relying on traditional federal and state funding, e.g. CDBG, HOME, SHIP for affordable housing; . Local governments that have made strides in addressing their workforce/affordable housing needs have typically earmarked CRA tax increment financing (TIF) funds toward projects; . Several local governments have effectively piggybacked various federal and state housing funds, e.g. CDBG, HOME. and SHIP, with local housing financing tools, including TIF funds, to address their workforcelaffordable housing needs; . Local workforce/affordable housing programs are principally designed to assist first-time homebuyers with substantial mortgage subsidies; . There is little evidence that local governments have given priority to workforce/affordable housing programs aimed at purchase/rehabilitation, rental rehabilitation or targeted neighborhood revitalization. Institution Building Assessment . While South Florida's workforce/affordable housing policy issues have been effectively articulated and promoted through the efforts of the Broward Housing Partnership, Greater Miami Chamber of Commerce and Housing Leadership Council of Palm Beach County, working private/public partnerships that advance and sustain workforce/affordable housing production has not been developed; . Several local governments through their planning and community development departments and CRAs have made significant strides working with community-based organizations such as community land trusts (CL Ts) and community development corporations (CDCs) in developing and preserving workforce/affordable housing; . While there are several good examples in place in South Florida of local government working effectively with non-profit housing developers, e.g. CL Ts, CDCs, this capacity is largely undeveloped; South Florida Workforce HousIng Needs Assessment - ----,'-',."..-, _. -- ,-.,. ~.-:-- ---. . Several local governments, through their community development departments and CRAs, have been successful in developing local lending consortia to help finance workforce/affordable housing iniliatives; . Employer Assisted Housing (EAH) initiatives are generally undeveloped and the private/public collaboratives that are necessary for their success have not been established; . The effective leveraging of local financing resources with federal, state and other local public and private resources is an undeveloped institutional capacity. D" Best Practice Case Study Examples The following best practice case studies were chosen to demonstrate how successful workforce/affordable housing projects were developed in South Florida. Case studies were selected that provide the clearest evidence of how a more comprehensive and integrated housing delivery system can effectively implement workforce/affordable housing policies and objectives. The case studies focus on specific housing projects and the policies and management capacities that were critical to there success. Four of the projects were identified in the MS-AHD assessment of Broward and Palm Beach Counties. The fifth project, Miami Beach Rental Housing Preservation, was included in the Design Institute at Abacoa's 2007 focus on workforcelaffordable housing in South Florida. 31 , , -, r City of Boynton Beach Workforce Housing Redevelopment Boynton Beach serves as a South Florida best practice case study for workforce housing redevelopment. The Boynton Beach Community Redevelopment Agency (CRA) partnered with a private developer, the Comerstone Group, to include affordable housing at The Preserve, a master-planned luxury condominium and town home community. The Preserve consists of 180 two and three-story townhouses with 50 workforce housing units designated for households earning less than 120 percent of AMI. Through a joint financing effort, income eligible homebuyers can qualify for as much as $160,000 in financial assistance on a condominium or townhouse. The CRA estimates that with up to $60,000 in developer contributions, up to $50,000 in SHIP funds and a potential $50,000 from the CRA's Homebuyer's Assistance Program, the price on a $279,990 three-bedroom condominium can be reduced to as low as $119,990. The City of Boynton Beach has demonstrated a high level of coordination and integration through the Department of Development which combines the City's Planning and Zoning and Community Improvement Divisions (CDBG Administration) under one roof. There is also a good working relationship between the City's Department of Development and the Community Redevelopment Agency (CRA). The two departments have worked effectively together in the planning and implementation of the City's Workforce Housing Program. The Boynton Beach CRA has been active in other workforce housing infill projects including providing a $3 million land write- down for Ocean Breeze, a mixed-income development consisting of 84 rental units for low and moderate income household and 56 town home units.. The Boynton Beach CRA has been active in other workforce housing infill projects including providing a $3 million land write-down for Ocean Breeze, a mixed-income development consisting of 84 rental units for low and moderate income household and 56 town home units. The CRA has also partnered with the Boynton Beach Faith-Based CDC to create three new homes in the Heart of Boynton neighborhood. The CRA sold the CDC the land for $10 in exchange for affordability, upgraded design and energy efficiency. nulu~. , South Florida Workforce Housing Needs Assessment . ....,., .'.,,"f' < ,. 'i~ ~..-...----. Urtlan In",l: The Preserve 32 - .... City of Delray Beach Community land Trust Delray Beach serves as a South Florida best practice case study for its creation and support of the Delray Beach Community Land Trust (CL T). The creation of the Defray Beach Community Land Trust (CL T) was a key recommendation of the SW Neighborhood Redevelopment Plan adopted by the City Commission in 2003. The CL T was developed as a long-term solution to eliminating barriers to affordability in housing by providing an affordable housing stock within the City in perpetuity. The CRA put forth more than $4,000,000 in funding to support the CL T during FY 2006-2007. During FY 2005-2006 the City and CRA transferred deeds on nineteen (19) lots to the CL T to utilize as part of the affordable housing inventory. In July of 2006, the City transitioned its First Time Homebuyer Program, which provided traditional down payment assistance, into a Sub-recipient Partnership Program with the Community Land Trust for the purpose of creating even more affordable purchase prices. Under the Sub-recipient Housing Partnership Program, subsidy is awarded (based on occupants income eligibility) to the CL T to be applied towards the principal reduction of construction costs of each eligible unit. This strategy enhances each unit's affordability by keeping the subsidy attached to the unit as opposed to the occupant to ensure affordability in perpetuity. The CL T receives funding allocalions from the Community Redevelopment Agency's (CRA) tax increment financing (TIF) fund and State Housing Initiatives Partnership (SHIP) to produce workforce housing units that will remain affordable for future home buyers. The City's FamilylWorkforce Housing policy emphasizes the integration of workforce units into market rate developments. Recent modifications to the FamilylWorkforce Housing Ordinance give the CL T first right-of- refusal when workforce units that have been buill by private developers are put up for sale. Significant coordination and integration exist among these three departments and the Delray Beach Community Land Trust in the planning and implementation of the City's FamilylWorkforce Housing Ordinance. The City of Delray Beach has committed Community Redevelopment Agency (CRA) tax increment financing (TIF) funds to augment workforce housing development projects. TIF and SHIP funds are combined 10 produce affordable first-time homebuyer units in conjunction with the Delray Beach Community Land Trust (CL T). A total of $492,433 in SHIP funds were allocated in Fiscal Year 2006-2007 for first-time home buyer assistance with the subsidy attached to the housing unit through the CLT. The CLT home buyer program produced and closed-on ten (10) units last year that are dedicated to low and moderate income homebuyers. Additionally, both TIF and SHIP funds ($500,000) were used to acquire and convert the historic La France Hotel into 14 affordable apartment units. nul".....:"-. --- ---~- - South Florida Workforce Housing Needs Assessment . ..--~- - - - -.-, - - _. -- , - --- - - - - - --- Delray Beach serves as a South Florida Best Practice case study for Its creation and support of the Delray Beach Community Land Trust. SWinton Community Land Trust: Single-Family Development - -- - ----- - ---- 33 , I,:&'.'P'_ >'it':"<! - "-.:'!'\~.'~ ,.".~ Town of Davie Affordable Housing Policy The Town of Davie serves as a South Florida best practice case study for the adoption of affordable housinglinclusionary zoning ordinance and management capacity. The Town's passed its first omnibus affordable housinglinclusionary zoning ordinance on April 16 2008. The goal of the ordinance is "to provide new, sanitary, and sustainable housing by mandating that all new residential developments with 10 units or greater must set aside 20 percent of the units as affordable housing or pay into a trust fund. The fee would ask $9.00 per square foot not to exceed 1,600 sq ft ($14,100) in a plan which mirrors the bonus density code of Broward County. The Town of Davie has a high level of coordination and integration among key departments involved with the delivery of affordable housing programs. There is a good working relationship among the departments of Housing and Community Development, Planning & Zoning and Engineering which guide housing development applications through the process and waive every fee for affordable housing except water and sewer impact fees which are mitigated using SHIP funds. To expedite the permitting process the Town created the Development Services Department which is comprised of Planning & Zoning, Occupational License, Engineering and Code Enforcement. If a plan has at least one affordable housing unit it receives a "red sticker" and is "hand walked" through the permitting process by the Housing and Community Development Director. The Director of Housing and Community Development carefully reviews all prospective affordable housing projects to verify their level of benefit and period of affordability. The waiver of all fees, e.g. Parks and Recreations Impact Fees, Design Review and Site Plan Processing Fees, Engineering Review Fees, Building Permit Fees, etc., are based on this review. The Town of Davie has demonstrated a significant level of "in-house" capacity-building in advancing its affordable housing policies and programs. Capacity-building is found in the Town's Housing and Community Development and Planning and Zoning Departments. Within the past 3 years the Town has shown the ability to effectively leverage local funding sources with federal and state housing resources. For example, the Town has effectively leveraged $1.3 million in tax increment financing (TIF) funds and private financing to build twenty-two (22) affordable housing units through Habitat for Humanity. The Town was creative In leveraging $500,000 from the Broward County Housing Authority with donated services from the Children Services Council and Memorial Health Care Systems (MHS) in renovating the Ehlinger public housing project. mlY~ ") , South Florida Workforce Housing Needs Assessment i"'~~' :>-~,.,.",'w,r?':" 't.r-_~)'!r!"1"1:W"T.--r.~-"',,::,~,,~_ 1" """'iI The Town of Davie has demonstrated an effective and efficient use of federal, state and local funds in addressing their affordable housing needs. The Town effectively leverages local funds e.g. tax increment financing (TIF) and the Community Endowment Fund (CEF) with HUD Community Development Block Grant (CDBG) and HOME funds and State Housing Incentives Program (SHIP) funds. The Town of Davie also uses $130,818 in CDBG funds for Fair Housing, Citizen Participation & Support Services to expand Fair Housing Education & Outreach Programs designed to remove impediments to fair housing choices and provide a wide range of housing opportunities for Davie residents. The Town of Davie has a high level of coordination and Integration among key departments Involved with the delivery of affordable housing programs" ~;~~..;=-___ ~ .+~~-'-r :::~--_. -",.- .,-:",~-'-o<_"~' ~.. .".-.~".~,.; .~i:.w'" .~..~-- ~~.f_ -~,."- _, . ~~. -:-'_'. -_. ~~ -:"."-: ~ ~..... ~,._-, ~..,,' .. . ..")I.,.....,.'~..,.... . ~ -~1-~.:~;:...- - _=- "':-...__.-~..~.... __Ih_r- ~' -, :-;::s''''_'r ...- -~. - ":t.. 10- --'~~ oI"--~ ~~ ~. ... 7 _' .,,-~ __ , \ ~, __'_,~ l1.' .... ......0 .'" I '. ..C~I~ ~...~ - .~ II:~'~~~:, '-"~\",~ r.-=:-" . ,~>~. .'..' , ~ ._ - I' '. ..~. 1 l' ",J I' \ . . i .~ ~;;- - _J~ !I'. !j l,~ It 34 City of Miami Beach Rental Housing Preservation Miami Beach serves as a South Florida best practice case study for rental housing preservation. The first three projects Included the historic Allen Apartment Hotel, London House and Barclay Plaza Hotel. The projects were undertaken by the Miami Beach Community Development Corporation (MBCDC) in collaboration with the City of Miami Beach and City of Miami Beach CRA. The projects will provide affordable housing opportunities for low- to moderate-income renters in Miami Beach (including workforce housing and housing for artists and cultural workers). The MBCDC reconfigured the units to proVide a mix of efficiencies and studios, and one-, two-, and three bedroom units. The configuration and rents of the units are designed to meet the increasing need for multi-bedroom rental units (a current gap in the housing supply) that are affordable to lower income residents. Housing studies show that 70 percent of Miami Beach residents are employed in low-wage service industries and 60 percent of residents make less than $32,000 per year. The three project buildings were purchased for $13.7 million using City of Miami Beach CRA tax increment financing (TIF) funds. The Allen Apartment Hotel is located on a 9,625-square foot parcel and contains 42 units with an average size of 255 square feet. Currently the building is vacant and boarded up. When reconstruction is completed, the building will contain 23 units. The Barclay Plaza Hotel is located on a 26,250-square foot site and contains 66 efficiency units averaging 267 square feet in size. At present, the Barclay Plaza Hotel is primarily occupied by low-income elderly residents, which means that most residents would likely qualify for affordable housing assistance when the units are rehabilitated. When construction is completed, the Barclay will contain 33 units. The London House is located on a 12,073-square foot site and contains 54 units averaging 252 square feet in size. Like the Barclay Plaza Hotel, the London House is occupied as low-income rental housing. When reconstruction is completed, the building will contain approximately 31 units. The MBCDC has incorporated "Green Communities" criteria into the building designs which promote public health, energy conservation, operational savings and sustainable building practices in affordable housing design. nD I "'='"" '""":"""": - -=- ,--,.,.,-_..... .- South Florida Workforce Housing Needs Assessment -- - =- . .- - - - - .- _ .J The MBCDC is also involved with other rental housing preservation projects including the 36 unit Villa Matti Apartments and 34-unit Villa Maria Apartments. These projecls have been undertaken by the Miami Beach Community Development Corporation (MBCDC) working in partnership with the City of Miami Beach and Miami-Dade County. Sources of funds for the Villa Matti Apartments include HUD Section 202, Miami-Dade County HOME and HODAG and City of Miarni Beach CHDO funds. The Villa Maria Apartments were funded with City of Miami Beach HOME, SHIP and CDBG funds and Miami-Dade County HOME and Surtax funds. -1 ........ London House in Miami Beach The projects will provide affordable housing opportunities for low- to moderate-Income renters in Miami Beach (including workforce housing and housing for artists and cultural workers). Allen Apartment Hotel in Miami Beach 35 ) City of West Palm Beach Model Block The Model Block Program in the Northwood community of West Palm Beach serves as a South Florida best practice case study for neighborhood revitalization through affordable housing development. In the Model Block Program a likely block or two is identified for comprehensive improvements such as infrastructure improvements, addition of attractive street lighting and green landscape improvements along with the purchase and rehabilitation or new construclion of homes that are affordable to low- to moderate-income first-time homebuyers. It Is often difficult to attract homebuyers to urban areas with an aging infrastructure, large number of absentee owners and deteriorated housing. The Model Block Program provides visible targeted comprehensive improvements attracting first-time homebuyers and creating a positive ripple effect on other revitalization efforts across a wider area. "Miracle on 34th Street", the first Model Block Project in Palm Beach County, was undertaken by Neighborhood Renaissance, Inc. (formerly known as Northwood Renaissance) in collaboration among South Florida L1SC, the City of West Palm Beach and local developer, Complete Property Management, resulting in the purchase, rehabilitation and resale of 9 mission style homes, facade improvements to adjacent homes along with street improvements, traffic calming, lush landscaping, and the installation of attractive street lighting. Model Block II was a continuation of Model Block I and expanded improvements to the 600 blocks of 32"" & 33'. Streets. Phase III incorporated a Community Land Trust component to ensure that the newly built Florida style bungalow homes remain affordable to future generations to come. In all, the Model Block Program resulted in 33 affordable home ownership opportunities for low- to moderate- income families and an $6 million investment in the neighborhood. Funding sources Include City of West Palm Beach HOME & CDBG, Palm Beach County SHIP, and Knight Foundation homebuyer grants administered through L1SC. nul"~ -, ) South Florida Workforce Housing Needs Assessment '!'!I~'.,.,""'1,.._-_. ~.' ,....,....... ..,..~.". ._~. - _.. ,J!.-" ".'.E I . ~...,.' . I' In all, the Model Block Program resulted in 33 affordable home ownership opportunities for low- to moderate-income families and an $8 mi///on investment in the neighborhood. 36 _ ......_ .0.................-""'<..... V Workforce Housing Policies and Strategies: Recommended Solutions South Florida Workforce Housing Needs Assessment n-~'-" ....,....- .. .-.~~~...... - -...-- ._. '.' ---- .~ This section provides recommended workforce housing policies and strategies that build on the findings of the Municipal Scorecard for Affordable Housing Delivery<<:> (MS-AHD) best praclice case studies. The recommended policies and strategies are divided Into the four elements of the MS-AHD model: o Polley and Management o Planning and Land Use o Local Dedicated Funding o Institutional Capacity Building A" Policy and Management Creation of a Comprehensive Regional Workforce Housing Policy A comprehensive "South Florida Regional Workforce Housing Policy" should be formulated that addresses the findings of this study and the outcomes of the South Florida Regional Housing Conference. The South Florida Regional Workforce Housing Policy should then be incorporated into the Housing Element of the South Florida Strategic Regional Policy Plan (SRPP), Creation of a Regional Affordable Housing Delivery System The South Florida Regional Workforce Housing Policy should be implemented through a comprehensive "workforce housing delivery system" that would include the four (4) elements of the MS-AHD model. The creation of a regional workforce housing delivery system will help ensure the effective coordination and integration of South Florida's workforce housing planning and management activities. Community-based, private/public partnerships would serve as the organizational vehicle for the workforce housing delivery system's operation and implementation. Mission-driven public/private housing partnerships will help to maximize and effectively apply public and private sector resources by de-politicizing program delivery and differentiating administrative and operational functions within the larger workforce housing delivery system. Creation of a Comprehensive Single Permit Process for Workforce Housing Projects A "Comprehensive Permir process is recommended to fully expedite the approval of proposed workforcelaffordable housing projects subject to compliance with local and regional workforce/affordable housing goals and objectives. The Comprehensive Permit would involve a single application by project proponents for all local approvals, e.g. zoning, site plan review, etc. with a time certain for project approval. Implementation of a Performance Measurement System The design of the South Florida Workforce Housing Delivery System should include a performance measurement system to provide accountability in the management and implementation of the South Florida Regional Workforce Housing Delivery System. Policy Emphasis on Rental Housing Preservation and Production A comprehensive South Florida "Rental Housing Preservation Policy" initiative is recommended to address the pressing need of working households earning 80 percent or less than the area median income (AMI). Specific housing policy goals and objectives, rental program designs and funding allocations need to be identified to help preserve and expand this critical workforce housing supply . B" Planning and Land Use Coordination and Integration of Workforce/ Affordable Housing Plans South Florida counties and municipalities should coordinate and integrate the workforce/affordable housing planning and policy initiatives set forth in their Comprehensive Plans, H U Consolidated Plans, State Local Housing Assistance Plans (LHAPs) to specifically address the need for workforce/affordable housing. Create New Planning Objectives and Program Activities for Workforce/Affordable Housing South Florida counties and municipalities should provide specific planning objectives and program aclivities within their HUD Consolidated Plans and State Local Housing Assistance Plans (LHAPs) to address the prOduction and preservation of workforce/affordable rental housing. Community Redevelopment Area (CRA) Planning for Workforce/Affordable Housing South Florida municipalities with Community Redevelopment Area (CRA) Plans should include specific policies and strategies for developing workforce/affordable housing, including mixed- income rental housing. Aggressive Urban Inflll Strategies for Workforce/ Affordable Housing South Florida counties and municipalities should forge working partnerships with profit and non-profit housing organizations to go beyond the basic requirements of Chapter 166.0451, Florida Statutes, Disposition of Municipal Property for Affordable Housing, and facilitate more aggressive urban infill strategies utilizing existing government-owned land to accommodate future workforce/affordable. Land Use and Zoning Incentives for Workforce/ Affordable Housing South Florida counties and municipalities should prOVide policies and objectives in the Future Land Use Element of their Comprehensive Plans and amendments to the Unified Land Development Regulations that encourage and enable workforce/affordable housing development opportunities including: density relief, expansion of multi-family residential districts and reductions in parking requirements. Ensure no "Net Loss" of Existing Rental Housing Supply South Florida counties and municipalities should add policy provisions to the Housing Element of the Comprehensive Plan that all future development will not result in a "net loss" of existing workforcelaffordable rental housing for households earning 80 percent or less than the area median income (AMI). 37 1 C. Local Dedicated Funding Create Local Publici Private Dedicated Funding Sources for Workforce/Affordable Housing South Florida counties and municipalities should create local public/private dedicated funding sources in support of workforcelaffordable housing projects and program activities. Potential funding sources include: housing trust funds (non- SHIP), bond issues and tax increment financing (TIF) funds. Leverage Local Private Funds with Federal, State and Local Public Funds South Florida counties and municipalities should create locally designed workforcelaffordable housing programs that effectively leverage local financing with federal and state housing grant programs including CDBG, HOME, SHIP and newly allocated Neighborhood Stabilization Program (NSP) funding. Target Workforce/Affordable Housing Funds to Neighborhood Revitalization Workforcelaffordable housing funding should be targeted to comprehensive neighborhood revitalization efforts that include public infrastructure investments, code enforcement and increased crime prevention. Funding Emphasis on PurchaselRehabllltatlon and Rental Rehabilitation Activities South Florida counties and municipalities should re-direct workforce/affordable housing.funding away from deep subsidy, first time homebuyer programs to targeted neighborhood purchase/rehabilitation and investor-owned, rental rehabilitation - programs. Pre-development Funding Support for Non-Profit Workforce/Affordable Housing Development Organizations South Florida counties and municipalities should provide pre- development funding assistance to able non-profit housing organizations, including community land trusts (CL Ts) and community development corporations (CDCs), to increase workforce/affordable housing development opportunities in targeted neighborhoods. rnrl....~ , D" Institutional Capacity-Building Support Private-Public Housing Partnerships In Implementing South Florida's Workforce Housing Delivery South Florida's workforce housing delivery should be operationalized through new and existing private-public housing partnerships. Housing partnerships should serve as intermediaries between local govemments and communities in a workforce/affordable housing delivery system. Develop a Regional Workforce Housing Lendlng/Equlty Investment Consortium Develop a Regional Workforce Housing LendinglEquity Consortium to provide financing assistance for local workforce housing program initiatives involving purchaselrehabilitation and rental housing preservation. Support for Employer Assisted Housing (EAH) Programs Institutional capacity-building for long term workforcelaffordable housing development in South Florida will require the creation and support of Employer Assisted Housing Programs. Capacity-Building for Non.Proflt Housing Development Organizations South Florida counties and municipalities should provide financial support to capacity-building efforts of non-profit hop using developments organizations, including community land trusts (CL Ts) and community development corporations (CDCs). Alternative Funding Sources for Affordable/ Workforce Housing South Florida counties and municipalities should seek out or create altemative funding sources for workforcelaffordable housing. The creation of local housing trust funds and the use of the New Market Tax Credits program to acquire, rehabilitate and re-sell foreclosed homes (REOs) are examples of alternative funding mechanisms .....-. - ) South Florida Workforce Housing Needs Assessment ..... - - ----. Support Alternaflve Building Designs and Materials for Workforce/Affordable Housing South Florida counties and municipalities should support alternative building designs and materials that could, including "green" building methods, which could reduce the costs of workforcelaffordable housing development. 38 "":""'~,'''\ ~ ~~~~Y~Te~ C . East Side-West Side-Seaside Renaissance eRA BOARD MEETING OF: January 13,2009 I I Consent Agenda I Old Business I I New Business Public Hearing I X I Other SUBJECT: Old High School Transfer SUMMARY: This item is for Information Only . At the October 7, 2008 City Commission Meeting the City voted to transfer the responsibility for the Old High School from the CRA to the City (see attached Minutes). . On December 12, 2008 the Agreement was executed between the CRA and the City for the transfer (see attached emails and Agreement). . The Special Warranty Deed was executed on December 12,2008 (see attached Special Warranty Deed). FISCAL IMPACT: Estimated refund of insurance proceeds of approximately $12,000 pending insurance carrier review and approval (see attached email). CRA PLAN, PROGRAM OR PROJECT: N/A RECOMMENDATIONS: Information Only rsL~~dI~ Finance Director T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda item Request Fonns by Meeting\FY 2008 - 2009 Board Meetings\l- 13-09 Meeting\Old High School Transfer.doc Meeting Minutes Regular Commission Meeting Boynton Beach / FL October 7, 2008 No one else coming forward, Mayor Taylor closed the Public Audience. Motion Commissioner Weiland moved to have the City accept the responsibility of the Old High School. Commissioner Hay seconded the motion that unanimously passed. Mayor Taylor instructed this item should be put on the October 21st agenda. V. ADMINISTRATIVE: A. Appointments Appointment Length of Term To Be Made Board Expiration Date II Hay Bldg. Bd. Of Adj. & Appeals Reg 3 yr term to 12/10 Tabled (2) I Weiland Bldg. Bd. of Adj. & Appeals Alt 1 yr term to 12/08 Tabled (3) IV Ross Cemetery Board Alt 1 yr term to 12/08 IV Ross Code Compliance Board Alt 1 yr term to 12/08 III Rodriguez Code Compliance Board Alt 1 yr term to 12/08 Tabled (3) Weiland Community Relations Board Alt 1 yr term to 12/08 Tabled (2) Mayor Taylor Education & Youth Advisory Board Alt 1 yr term to 12/08 I Weiland Library Board Alt 1 yr term to 12/08 Tabled (3) II Hay library Board Reg 3 yr term to 12/09 Mayor Taylor Recreation & Parks Advisory Board Alt 1 yr term to 12/08 Tabled (3) I Weiland Recreation & Parks Advisory Board Reg 3 yr term to 12/09 Tabled (2) I Weiland Veterans Advisory Commission Alt 1 yr term to 12/08 Tabled (3) II Hay Veterans Advisory Commission Reg 3 yr term to 12/08 Tabled (3) Motion Commissioner Weiland moved the appointments be tabled. Commissioner Hay seconded the motion that unanimously passed. VI. CONSENT AGENDA: Matters in this section of the Agenda are proposed and recommended by the City Manager for "Consent Agenda" approval of the action indicated in each item, with all of the accompanying material to become a part of the Public Record and subject to staff comments. 7 AGREEMENT BETWEEN CITY OF BOYNTON BEACH ("CITY") AND THE BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY ("CRA") RESCINDING THE PREVIOUS AGREEMENT_REGARDING THE OLD HIGH SCHOOL This Agreement (hereinafter "Agreement") is made the fa +h , day of DeceM ber 2008, between the CITY OF BOYNTON BEACH, a municipality located in Palm Beach County, Florida (hereinafter "CITY") and BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, a public agency created pursuant to Chapter 163, Part III, of the Florida Statutes (hereafter "CRA"), each one constituting a public agency as defined in Part I of Chapter 163, Florida Statutes. RECITALS WHEREAS, on October 5, 2005, the CITY and CRA entered into an Agreement transferring ownership of the Old High School ("School") to the CRA for restoration of the School; and WHEREAS, the City and CRA agree that the purpose and intent of the prior agreement is no longer feasible. The parties agree to rescind the prior agreement and release each other from the obligations stated therein; and WHEREAS, the CRA shall transfer sole ownership and control of the School back to the City and will be relieved of any responsibility for the maintenance, adaptive re-use, insurance, leasing and redevelopment of the School. NOW, THEREFORE, it is agreed and understood by and between the parties hereto as follows: S:\CA\CRA\Old high school agmt revert to City.doc SECTION ONE - AFFIRMA TIONS 1.1 The foregoing "whereas" clauses are true and correct and incorporated herein by reference. SECTION TWO - TRANSFER OF OWNERSHIP 2.1 The eRA shall execute a special warranty deed, attached hereto as Exhibit A, III favor oj the City within 30 days of the execution of this Agreement. 2.2 The special warranty deed will transfer in fee simple all rights, title and ownership in the School back to the City. SECTION THREE - CONSIDERATION 3.1 The CRA wiII transfer ownership of the School back to the City for the amount of $1 0.00 and other valuable consideration as set forth herein. SECTION FOUR - APPLICABLE LAW 4.1 This Agreement shall be construed in accordance with the laws of the State of Florida. SECTION FIVE - VENUE 5.1 Each of the parties hereto are authorized to enforce the terms of this Agreement in a court of law in Palm Beach County, Florida, and may seek all remedies available at law and in equity. The prevailing party in such litigation shall be entitled to reasonable costs and attorneys' fees, including fees incurred through any appeals. SECTION SIX - VALIDITY 6.1 In the event anyone or more of the provisions contained in this Agreement is for any reason held invalid, illegal or unenforceable in any respect. such invalidity or illegality or unenforceability will not affect any other provision hereof and this Agreement will be S:\CA\CRA\Old high school a9m! revert to City doc construed as if the invalid, illegal or unenforceable provision had never been contained herein. SECTION SEVEN - ENTIRE AGREEMENT 7.1 This Agreement constitutes the entire understanding of the parties and any previous agreements, whether written or oral, are superseded by this Agreement. Any amendment of this Agreement must be reduced to writing and executed with the same formality by both parties. SECTION EIGHT - RECORDATION 8.1 This Agreement may be recorded in the Public Records of Palm Beach County, Florida. SECTION NINE - BINDING AUTHORITY 9.1 Each party hereby represents and warrants to the other that each party executing this Agreement on behalf of the CITY and CRA or any representative in that capacity, as applicable, has full right and lawful authority to execute this Agreement and to bind and obligate the party for whom or on whose behalf he or she is signing this Agreement. SECTION TEN - EFFECTIVE DATE IO.1 This Agreement shall become effective on the date last signed by the parties. BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY CITY OF BOYNTON BEACH By: ~r tffy Tayl , May ATTEST: ~ Yn. ptuivJ.p ~ By: S:\CA\CRA\Old high school agmt revert to City.doc 3 rhis rnstnlment Prepared Bv and Retum to James A. Cherot Esquire GOREN. CHEROF, DOODY & EZROL, P^ 3099 East Commercial Boulevard. Suite 200 Fort Lauderdale, Florida l,lOB Property Appraisers ID #:08-43-45-28-05-014-0020 SPECIAL WARRANTY DEED (Corporation) This Special Warranty Deed is executed this ~___day of December, 2008, by Boynton Beach Community Redevelopment Agency (CRA), a Florida public body corporate and politic created pursuant to Section 163.356 F.S, whose post office address is 915 South Federal Highway, Boynton Beach, Florida 33435, hereinafter called the Grantor, to City of Boynton Beach, a Florida municipal corporation, and having its principal place of business at 100 East Boynton Beach. Boynton Beach, Florida 33435 . hereinafter called the Grantee: (Wherever used herein the terms "Grantor" and "Grantee" shall include singular and plural, legal representatives, and assigns of individuals, and the successors and assigns of corporations, wherever the context so admits or requires.) Witnesseth, That the Grantor, for and in consideration of the sum of $1 0.00, in hand paid by the said second party, the receipt whereof is hereby acknowledged, hereby grants, bargains, sells. aliens, remises, releases, conveys and confirms unto the grantee, all that certain land situate in County of PALM BEACH, State of Florida, to-wit: SEE A TT ACHED EXHIBIT" A" A TT ACHED HERETO THIS SPECIAL WARRANTY DEED HAS BEEN PREPARED WITHOUT THE BENEFIT OF A TITLE EXAMINATION Subject to easements, restrictions, reservations, and limitations of record, if any. Together with all the tenements, hereditaments and appurtenances thereto belonging or 1I1 anywise appertaining. To Have and to Hold the same in fee simple forever. And the said Grantor will only warrant and forever defend the right and title (0 the above described property unto the said Grantee against the claims of those persons claiming by. through or under Grantor, but not otherwise. EXHIB IT "A" LEGAL DESCRIPTION A parcel ofland, being a portion of Lots 4 and 5, Block 14, SWA YER'S ADDITION TO THE TOWN OF BOYNTON BEACH, according to the plat thereof as recorded in Plat Book 1, at Page 69, of the Public Records of Palm Beach County, Florida, being more particularly described as follows: Commence at the southeast corner of Lot I, Block 14, SAWYER'S ADDITION TO THE TOWN OF BOYNTON BEACH, according to the plat thereof as recorded in Plat Book I, at Page 69, of the Public Records of Palm Beach County, Florida; thence N 890 53' 2]" W, along the South line of said Block 14, for a distance of 316.82 feet to the POINT OF BEGINNING; said South line of Block 14 being coincident with the North right-of- way line of Ocean Avenue as shown on said plat; thence continue N 890 53' 21" W, along said North right-of-way line of Ocean A venue for a distance of ] 68. 12 feet to a point; thence N 010 44' 07" W, parallel to the East line of said Block ] 4, for a distance of 229.64 feet to a point; thence N 890 52' 50" E, for a distance of 168. I 0 feet to a point; thence SO] 0 44' 07" E, parallel to the East line of said Block] 4, for a distance of 230.3 I feet to the POINT OF BEGINNING. Said lands situate within the City of Boynton Beach, Palm Beach County, Florida. Containing 0.89 acres of land more or less. SUBJECT to an ingress, egress, parking and building structure easement over the North 20 feet thereof; and over the South 209.64 feet of the West 15 feet thereof; and over the South 65 feet of the East 10 feet thereof, and over the South 30 feet ofthe West 20 feet of the East 30 feet thereof. Further SUBJECT to the use of the existing concrete slab for air-conditioning equipment and associated electrical control panel located along the east side of the existing building structure which services the adjacent elementary school museum building located to the east of this subject property. In Witness Whereoj~ the said grantor has signed and sealed these presents Ihe day and year first above written. BOYNTON BEACH COMMUNlTY REDEVELOPMENT AGENCY A Florida Public Body Corporate and Politic ~;,Jlr~Y;r Signed, sealed and delivered in presence of: (Signature of fi sf witness) \~~\'"V"\L.. S~CA t"\. -i. \O~.,' (Printed name of\flrst witness) (Signature of second witnes Lu:t h klfl/g.NdF~ (Printed name of second witness) STATE OF FLORIDA COUNTY OF PALM BEACH The foregoing instrument was acknowledged before me this December k;l+fJ, 2008 by ---",-Tt;::J (\~ TCl~ j or _ , who has acknowledged himself to be the Chair of the Boynton each ommumty Redevelopment Agency, a Flonda Pubhc Body Corporate and Politic, who is perso~~!!L~rlQ\Vn, to me or has produced __Ll(~L '. a~ identification ' -- , ' ('11,1" . ,; ( I J .' j II i . .. .'. . AL/J)Wft;L-",LiJ-vl8' . 1/_ V NUilV r tA/ VI ~ignature ofNotaty i CU-lfl(J r mL (I,hen \'t-{~ U ))('; In-~ i ; Printed Name of Notary My Commission Expires: 1--lChl >~ _i.?~)4'i). My Commission Number: D I 'f ../,! 'I i , I): Mri l'U1\LlC.STATE OF FLORIDA . :'" P"", Cathn1ne Climy-Guberman : ,~ l Commission # DD792144 '-"~/ ">nires: MAY 27, 2012 '~Dj.;;; '111;'U",j'LAN11C naNDING CO.,INe. ~ fif BOYlltClI' f{p.j' il (RA 1', 01''''1 Y A 1'1" ,,,,,,1\ f)' utlllr ed fly MAl IMI J\ Mr.',< '';':' (Ii fMl , --;- 'r: r>< ~ .. ~ l""'~~'~},ti 'k~~'*iJ~~ ,~r\lir. ":.~ :~,..,:t;.~>f\'il&"]-~!'~"J,';';~~~"'~~~~ r . . ",>, ~ "".. r <, i , -"'~ . - . . You replied on 01105j200'? 11 34 Ar1 From: Sharon PollIs (spoIUsCPbur~yriSkser...lces.com] To: Harris, Susan Cc: Cindy CueUar SUbject: RE: Boynton Beach eRA - Property Appraisals produced by MAXIMUS Sent: MonOl/OSf2009 tl:45 AM Best regards, Sharon Hi Susan: Cindy is following up with the undelWYiter today to see ifthe endorsement has been processed yet, but based on an estimated cost of approximately $42,00 per day, and at 67 days (from 10-1-08 to 12-6-08) the earned premium would be around $2,814 , therefore, the return will be in the range of $12,000. but please know this is merely an estimate as there may be some additional factors the carrier will use to calculate the actual return. We should know something today or tomorrow From: Harris, Susan [mailto:Harrissu@bbfl.us] sent: Monday, January 05,2009 11:19 AM To: Sharon PolUs; Cindy Cuellar f" 'ct: FW: Boynton Beach CRA - Property Appraisals produced by MAXIMUS tance: High Hi Sharon and Cindy. Can you please advise (today If possible). the refund amount for the Old High School An estimate is okay I remember you answenng my inqulIY. but I can't find the email I want to inform our Board of the refund amount Thanks, Susan Susan Harris Finance Director Boynton Beach eRA 915 South Federal HIghway Boynton Beach, Fl 33435 Tel: 561-131-3256 Ext. 2031Fax: 561131.3258 Email: harrissu@bbfl.us ,"!. start f ~ @;.. r r t;!: ,/, ", "- w. ~ ~ < ~..J L:.Fi'1 --- ------_._-_....~ -~---- ------.-,---- -----~_. ..._._---.---- -_._----- ~--~--_._._-"---- ---"-._-- -'-----' Monday, Jan 05. 2009 12:21 PM ~"I"""", . :. 1/."':'''' ~~~~Y~Te~lc RA . East Side-West SIde-Seaside Renaissance eRA BOARD MEETING OF: January 13,2009 I I Consent Agenda I Old Business New Business Public Hearing I X I Other SUBJECT: Agreements with DSS Restaurant Management to Provide Dumpster, Restroom and Electrical Service to the CRA's Boynton Harbor Marina (information only) SUMMARY: Per the request of Board member Rodriguez at the December 9,2008 CRA Board meeting, provided are copies of the executed written Agreements outlining the use of, and financial arrangement for, the access to the Two Georges restroom facilities and electrical service. The Agreements were reviewed and approved by CRA Attorney Cherof and executed by Steve Scaggs, Managing Partner for DSS Restaurant Management and the CRA Executive Director (see attached). FISCAL IMPACT: $16,625.00 General Fund, Account #51630-209 CRA PLAN, PROGRAM OR PROJECT: CRA Redevelopment Plan, Downtown Master Plan, Marina Redevelopment Plan RECOMMENDATIONS: N/A (Information Only) ~~k~ Michael Simon Development Manager T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by Meeting\FY 2008 - 2009 Board Meetings\I-13-09 Meeting\Marina operations follow up-info only. doc Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 There was discussion the plans showed three smaller boats there at $450 a slip. Ms Brooks clarified the conceptual plan was for a day "tie-up", similar to what Two Georges offered. Ms. Brooks explained even with the new gangplank, the slip owner, Paul Fasolo, owner of the Hammertime boat, could still maneuver into the slip. Captain Paul Fasolo, owner of a charter boat called Hammertime, slip owner at the CRA Marina, 1405 SW 25th Avenue, was present. Ms. Bright clarified he rents a space for his advertising sign which was over slip number one. Mr. Fasolo explained about three years ago, he was renting a slip by the CRA. He was approached by the Fire Marshall indicating the type of electric being provided was not up to Code and he was not supposed to be using electric for his slip. From that time forward, he rented from Steve Skaggs but he continued to pay for the slip because he built his business there and he has been there about 11 years. He explained more recently, he was feeling he was being pushed out of the way. He explained he signed the lease with the CRA but there were so many restrictive items in the lease that it makes him uncomfortable. He explained the lease is not user-friendly. Ms. Brooks confirmed the current boat could fit in the space and the design was conceptual. She clarified the lease was the one the Board approved. The members had made the policy decision to have one-year leases knowing individuals would be moving around. The electric was an issue on that slip and they were still hooked up to Two Georges because they carved off a piece of property the Skaggs family owned. At the time, to separate the electric required digging up the road, which cost the CRA $60,000. They had a grant from the County and would pursue a different design. The CRA was a public entity but the marina had no restrooms, trash or electric. Their goal was to change that and the conceptual plan included those upgrades. Mr. Fasolo's slip was restrictive because it was angled between two bigger boats. Mr. Fasolo wanted the slip because he liked the exposure of it and he ultimately wanted to have two boats. He reported he paid a considerable amount more to keep his boat at the Skaggs property than at the CRA's marina. The exposure at Two Georges was 10 times better and had all the amenities compared to the CRA slip. The issue was he was promised electric for two years and it was his understanding electric could easily be run there. He did not understand the delay. Ms. Bright explained the Board and the City Commission had to approve the Marina conceptual plan. The issue was the cost of the plan was $5,900,000, and they currently only had $2,000.0000. They were trying to approve the slip renovation plan. Vice Chair Rodriguez explained they were trying to improve the marina and he extended his apologies to Mr. Fasolo. He explained they have a master plan and the slips would have all the amenities they needed. He also explained the eRA had been paying Two Georges about $10,000 per year for public amenities and trash without a contractual agreement. He also thought the amount was not commensurate with the 5 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida October 14, 2008 actual use. Attorney Cherof confirmed there had not been a written document prepared. Mr. Hay agreed the amount was high. The calculations determining how the payment was calculated was in the meeting materials. Vice Chair Rodriguez believed most individuals using the restrooms were patrons. Chair Taylor thought Two Georges would not have any objections to entering into a written agreement. There was consensus to put together a written document. G. Reimbursement from Fireworks by Grucci Chair Taylor explained at the last Fourth of July Celebration, after the performance started there was an accident on the barge. There was a 25-minute delay before the fireworks started again and the eRA requested compensation for the disturbance. It was noted Grucci refunded $4,500. H. CRA Vendor List Vice Chair Rodriguez explained this item pertained to an email regarding utilizing Boynton Beach businesses. He thanked staff for the information and noted 25% of the vendors used were from the City. He encouraged staff to increase that number. D. Public Comments: (Note: comments are limited to 3 minutes in duration) Sherry Johnson, Community Caring Center, and Sister Joan Carusillo. Women's Circle, both located at 145 NE 4th Avenue, were present. Ms. Johnson requested clarification regarding the $200,000 the CRA gave them to find a new location, which they did. She acknowledged the budget adjustments made by the CRA and advised the Community Caring Center could not proceed with the sale of their building. She explained the intent, when the funds were given, was to facilitate the Women's Circle, the Community Caring Center and Boynton Beach PATCH. The funds would satisfy the space needs for all three organizations. She explained if the Women's Circle could move, it would allow for space for the other remaining two organizations. She explained there had been dialogue the CRA may not be around in the future and the funds would move to the City. She inquired what would happen to the money if that occurred. Chair Taylor explained the eRA would be around for a long time, and it was his understanding they had made an offer to purchase the building, but they were not interested in selling. Ms. Johnson clarified it was a choice of one or the other. 6 AGREEMENT BETWEEN BOYTON llEACH COMMUNITY REDEVELOPMENT AGENCY AND DSS RESTAURANT MANAGEMENT, INC. (d/b/n) TWO GEORGES This Agreement is made and entered into this L_ day of &:-' 2008 by and between the Boynton Beach Community Redevelopment Agency ("CRA") and Two Georges, Inc. ("Two Georges") for waste disposal services and restroom facility access to be used by the public at the Two Georges Restaurant site located at 728 Casa Lama Boulevard, Boynton Beach, Florida. It is agreed that until the eRA renovates the Marina such that there are restroom facilities cOl1stmcted for public lIse and an adequate waste disposal system is const\'llcted, the CRA will pay Two Georges an amount of $25.00 per day for the use of the above mentioned restroom and waste facilities owned and maintained by DSS Restaurant Management, Inc. This amoun.t is to be paid 365 days per year and billed on a monthly basis to the CRA. The monthly bill will be payable by the CRA within thilty (30) days of receipt of such billing by Two Georges. This Agreement can by terminated by either pmty upon thirty (30) days written notice sellt by cCl1ified, return receipt mail. Signed, sealed and delivered in the presence of: BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY ,- Lis~~g~;' Execuli!ecd~~~ .. Date Executed: J, II ( I D ( ) ) I J J DSS RESTAURANT MANAGEMENT INC, (D/B/A) TWO GEORGES !;~A_~ ~( .,---- - Date Executed: / I /; I h,r) / / AGREEMENT BETWEEN BOYTON BEACH COMMUNITY REDEVELOPMENT AGENCY AND DSS RESTAURANT MANAGEMENT, INC. (d/b/a) TWO GEORGES This Agreement is made and entered into this L day of )fjy-, 2008 by and between the Boynton Beach Community Redevelopment Agency (HCRA") and Two Georges, Inc. ("Two Georges") for the provision of electrical services to the vessel slips owned by the CRA. Whereas the Boynton Harbor Marina owned by the CRA does not currently have dedicated electrical service for vessel slips, and whereas Two Gem'ges is desirous of providing such service until such time as the CRA completes their Marina slip renovation project, it is agreed that the CRA will pay Two Georges an amount equal to 80% of Two Georges' monthly bill applicable to the electric provided to the Marina slips owned by the CRA. The monthly bill will be payable by the CRA within thirty (30) days of receipt of stich billing by Two Georges. This Agl'eement can by terminated by either patty upon thil1y (30) days written notice sent by certified, return receipt mail. Signed, sealed and delivered in the presence of: BOYlffON BEACH COMMUNITY REDEVELOPMENT AGENCY . Of I..j,/ ..... f i (1~) c'- 'h <: ,-I Li,. Bdr):ll, Execu'iv/fJir~l( _ Date Executed: II /4 U <G I I DSS RESTAURANT MANAGEMENT INC, (D/B/A) TWO GEORGES ~ft '" -- . Scaggs, Dire ~1117Jol I I Steven' Date Executed: AGREEMENT BETWEEN BOYTON BEACH COMMUNITY REDEVELOPMENT AGENCY AND DSS RESTAURANT MANAGEMENT, INC (d/b/a) TWO GEORGES This Agreement is made and entered into this _ day of _, 2008 by and between the Boynton Beach Community Redevelopment Agency ("CRA") and Two Georges, Inc. ("Two Georges") for the provision of electrical services to the vessel slips owned by the CRA. Whereas the Boynton Harbor Marina owned by the CRA does not currently have dedicated electrical service for vessel slips, and whereas Two Georges is desirous of providing such service until such time as the CRA completes their Marina slip renovation project, it is agreed that the CRA will pay Two Georges an amount equal to 80% of tbe.i.+- monthly bill applicable to the electric provided to the Marina slips owned by the CRA. The monthly bill will be payable by the eRA within thirty (30) days of receipt of such billing by Two Georges. 11"/0 94uVj 1'4 / This Agreement can by terminated by either party upon thirty (30) days written notice sent by certified, return receipt mail. Signed, sealed and delivered in the presence of: BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY Lisa Bright, Executive Director Date Executed: DSS RESTAURANT MANAGEMENT INC, (D/B/ A) TWO GEORGES Steven M. Scaggs, Director Date Executed: !Jl[ ~ 111405 AGREEMENT BETWEEN BOYTON BEACH COMMUNITY REDEVELOPMENT AGENCY AND DSS RESTAURANT MANAGEMENT, INC. (d/b/a) TWO GEORGES This Agreement is made and entered into this _ day of _, 2008 by and between the Boynton Beach Community Redevelopment Agency ("CRA") and Two Georges, Inc. ("Two Georges") for waste disposal services and restroom facility access to be used by the public at the Two Georges Restaurant site located at 728 Casa Lorna Boulevard, Boynton Beach, Florida. It is agreed that until the CRA renovates the Marina such that there are restroom facilities constructed for public use and an adequate waste disposal system is constructed, the CRA will pay Two Georges an amount of $25.00 per day for the use of the above mentioned restroom and waste facilities owned and maintained by DSS Restaurant Management, Inc. This amount is to be paid 365 days per year and billed on a monthly basis to the CRA. The monthly bill will be payable by the CRA within thirty (30) days of receipt of such billing by Two Georges. This Agreement can by terminated by either party upon thirty (30) days written notice sent by certified, return receipt mail. Signed, sealed and delivered in the presence of: BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY Lisa Bright, Executive Director Date Executed: DSS RESTAURANT MANAGEMENT INC, (D/B/A) TWO GEORGES Steven M. Scaggs, Director Date Executed: ~ '\~ O~ rJL u II Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9,2008 minutes of December 9/ 2008, and is on file in the City Clerk's Office. In her letter, Ms. Bright requested the Board recommend Vice Chair Rodriguez clearly outline in writing his expectations of her role as Executive Director. Ms. Bright also requested she and Vice Chair Rodriguez attend a mediation proceeding no later than January 15/ 2008. XVI. Comments by CRA Board Attorney None XVII. Comments by CRA Board Vice Chair Rodriguez inquired as to the status of a "handshake" agreement with the Two Georges for the use of their restroom facilities, and questioned whether the agreement had been solidified. Mike Simon, Development Manager/ indicated both agreements had been signed by the Two Georges and the CRA, and approved by counsel. A copy would be provided to the Board. XVIII. Adjournment There being no further business to discuss, the meeting properly adjourned at 9:51 p.m. Jz:r"~ y,---- Stephanie D. Kahn Recording Secretary 121008 25 Page 1 of 1 Harris, Susan ..>m: Harris, Susan Wednesday, December 10, 2008 1 :48 PM 'jreguez@aol.com' Taylor, Jerry; Weiland, Ronald; Hay, Woodrow; Ross, Marlene; Bright, Lisa; Brooks, Vivian; Cherof, James; 'Jim Cheroff Ucherof@cityatty.com)' Subject: RE: Two Georges Agreements Attachments: Electric and Restroom-Waste Agreements 11-2007.pdf Sent: To: Cc: Here is the attachment. Susan Harris Finance Director Boynton Beach CRA 915 South Federal Highway Boynton Beach, FL 33435 Tel: 561-737-3256 Ext. 203/Fax: 561-737-3258 Email: harrll.su@bbfl.us From: Harris, Susan Sent: Wednesday, December 10, 2008 1:26 PM To: 'jreguez@aol.com' Cr" Taylor, Jerry; Weiland, Ronald; Hay, Woodrow; Ross, Marlene; Bright, Lisa; Brooks, Vivian; Cherof, James; 'Jim Cheroff ( of@cityatty.com)' SUDject: Two Georges Agreements Hi Jose, As requested, attached are copies of the agreements with Two Georges re electric and restrooms/waste disposal. Regards, Susan Susan Harris Finance Director Boynton Beach CRA 915 South Federal Highway Boynton Beach, FL 33435 Tel: 561-737-3256 Ext. 203/Fax: 561-737-3258 Email: harrissu@bbfl-,-~ 01/0512009 Boynton Beach Community Redevelopment Agency Workshop on Proposed Master Development Agreement with the Auburn Group January 7, 2009 Analysis of MDA draft dated December 9, 2008 1. Term of Aareement. Originally, Auburn requested a 20-year project term and staff recommended a 10-year term. Auburn has reduced the project term to 12 years. Given the volatile nature of the credit markets and reductions in City/CRA revenue; should the City/CRA enter into a long term development agreement? Board Direction from October 14. 2008 Meetina No Board direction was provided on the12 year term proposed by Auburn. Revised MDA . November 08 The revised MDA states the term of the Agreement is for 12 years. MDA as of December 9. 2008 The term of the MDA remains at 12 years. 2. Subsidv Amount Reauested bv Auburn. The draft agreement has subsidy amounts totaling approximately $23M but this projection is not tied to actual project costs and\'lcannot be verified. City's/CRA's subsidize projects in an amount needed to make the project financially feasible including a reasonable rate of return to the developer. Financial verification of project costs is typically conducted by a third party. Should the CRA seek third party review of the project development proforma to verify the CRA subsidy is funding the project financial gap? Board Direction from October 14. 2008 Meetina The Board directed staff to analyze the estimated TIF to be generated from the proposed development and the required public subsidy needed based upon the updated pro formas to be provided by Auburn. Staff Analvsis of Pro Formas and Revised MDA - November 08 Based on the most recently submitted pro formas from Auburn, the proposed four phases of development will result in new annual TIF to the CRA in the following amounts*: Phase I/Senior Affordable Rental Phase IIITH's, Condos, SF/For Sale Phase III/Grocery Store/4,500 sq. ft. Phase IV/Market Rate Condos/RetailITH's TOTAL ESTIMATED TIF FROM PROJECT $ 37,226 $ 616,644 $ 0 $ 826.748 $1,480,618 The amount of CRA subsidy requested by Auburn per the revised MDA per phase is as follows: Phase I CRA Land Value** CRA Cash Contribution Demolition Total Phase I CRA $ 954,466 $1,920,000 $ 300.000 $3,174,466 Phase II CRA Land Value CRA Cash Contribution Demolition Streetscape (est.) Downpayment Assistance Total CRA Contribution $ 159,615 $2,844,000 $ 275,000 $1,000,000 $2.500.000 $6,778,615 $ 438, 154 Phase III CRA Land Value Phase IV CRA Land Value CRA Cash Contribution CRA Loan Demolition Total CRA Contribution $ 90,000 $ 1,216,000 $11,704,000 $ 150.000 $13,160,000 $23,551,235 TOTAL CRA CONTRIBUTION ALL PHASES *Based on current site plan as presented to CRA Board, not on subsequent scenarios posed by Auburn **Based on Market Assessed Valuation per PBCPA MDA as of December 9. 2008 The financial obligation of the CRA remains the same. The estimated TIF revenue remains the same. New language was added by Auburns attorney in Section 7, "Auburn acknowledges and agrees that all CRA funding and CRA acquisitions set forth in this Agreement shall be conditioned upon the receipt of adequate funding by the CRA through its taxing powers or bonding capabilities." A correction should be made in this sentence to remove the term "taxing powers". The CRA does not have taxing powers Since the time of the first draft of the MDA, eRA's have been legally cleared to enter into TIF agreements. The MDA is structured to provide CRA funding upfront rather than in the form of a TIF agreement where CRA funds would be paid annually to the developer after the project is completed 3. Auburn's Reauest for a 163 Aareement. Based on the future revenue volatility for the City/CRA is it fiscally responsible to enter into an agreement that binds the Agency's for a long term financial commitment of twelve years? Board Direction from October 14. 2008 Meetina Per the minutes, there was no Board consensus or policy direction. Revised MDA - November 08 Auburn requests that the CRA and f\uburn will enter I!lto 8 16~i Developmenr Agreement for each phase of the project once the Cltv has changed the land use designation MDA as of December 9. 2008 Section 17 remains the same as the last draft of the MDA 2 4. Number of Phases. Auburn is requesting that the Agreement cover all four phases of the proposed development plan. Again, given the uncertainty in the revenue stream, should the City/CRA commit funds beyond the first Phase? Board Direction from October 14.2008 Meetina Per the minutes, there was no Board consensus or policy direction. Revised MDA - November 08 The revised MDA still envisions a four-phase project. MDA as of December 9. 2008 The current MDA continues to encompass four phases. The phasing order has been amended so that the retail/grocery store is now Phase 1 and the Senior Rental is now Phase 2. New language has been added on Page 4, Section 7, line four, "The exact schedule for development and what type of development will occur in each phase are subject to change based upon the mutual agreement of the parties." 5. Reauest for Public Subsidv for Market Rate Development. Auburn is requesting the CRA advance Auburn $11 M to construct a private parking garage for the market-rate condominiums to be built at Federal Highway. The public purpose of the CRA's $11 M advance is unclear. Should Auburn be required to provide a more concrete public benefit in exchange for CRA funds? Board Direction from October 14.2008 Meetina The Board directed staff to obtain an opinion from CRA bond counsel. CRA staff put the question to Mark Raymond, CRA bond counsel, and it is his recommendation the question should go through a validation process. This is a process whereby a judge would determine the appropriateness of using public dollars for a private parking garage. CRA Attorney Cherof agreed with Mr. Raymond's recommendation. Revised MDA - November 08 Auburn has added an affordability component (20% of units) to Phase IV to comply with the City's Workforce Housing Ordinance. MDA as of December 9. 2008 The current MDA has new language on Page 14, Section 21.3, "The CRA funding for the planned Phase 4 development is contingent upon approval for bond financing in a bond validation proceeding. In the event that the bond validation proceeding does not permit bond financing for the parking garages, then the loan contemplated for the parking garages shall be designated for the construction of the work force housing units." Twenty percent or 61 of the 304 units in Phase 4 will be designated for workforce housing. The total amount of CRA funds requested in Phase 4 is $14,774,000 which equates to $242,197 of public subsidy per workforce unit. 6. Reauest for Fundina for Public Improvements. Auburn is requesting funds to construct a streetscape along MLK. Should the CRA be committed to an undetermined financial obligation without having an approved design or a project 3 budget? Should these public improvements be constructed by the City/CRA under a competitive bidding process rather than having Auburn construct them? Board Direction from October 14.2008 Meetina Direction from the Vice Chair was the City would be responsible for designing and constructing the streetscape Improvements and the CRA would pay for those costs However, there was no Board consensus or policy direction on this recommendation Revised MDA - November 08 The revised MDA states the CRt\ will design and construct the town circle anc streetscape including the exterior of SI Pauls AME church The cost to the C;f;; I both of trlese requests is r'n lH1kt'Jown variable al this time which prohibits HCCII! rite budget forecastin~ MDA as of December 9. 2008 New language was added on Page 12, Section 20.3 "The CRA shall pay up to a maximum of $1,000,000 to the City for such improvements," 7. Phasina Order The project as described in the Agreement has the senior affordable rental as Phase I. However, without a legitimate grocery store in place, Auburn will not be able to win the necessary tax credits to construct Phase I. Should Phase I become the grocery store/retail portion of the Project? Board Direction from October 14. 2008 Meetina The Board did not provide policy direction. Staff suggested it might be more effective to have a commercial developer partner with Auburn on this aspect of the project. Staff is in negotiations with a national grocery store chain for the HOB area. Revised MDA - November 08 An inconsistency exists within tlte 1\/II;/.l, (PaYE 10) whereby /"'ubUl n state~ LOIISII Liction will begin ~Ii gl oebl r slorf;; clfter Itv;:; naVE? solei 50/e 0 units If ,. "laSE I However the glocery btell e IS required to compete for FlOrida Housin9 F inanee Corporation for the proxirnity Issue to be selected for a r 8'. ,redii De?l 2-it tn~ state level for thE: Phase I Seniol Housing Hesidential prOject t\ut)UI! ,=,tatfOd they will agree tu consider 8nterlllg Into ar, agreenie!!1 (u allov,' r' lilli' party commercial developer to develop and manage the grocery store. MDA as of December 9. 2008 The Phasing has been changed to reflect the grocery store as being Phase 1 and the Senior Rental as Phase 2 8. Proiect Scope Auburn has added 7/10 of an acre to the project scope in the revised Agreement. In discussions, Auburn has indicated that they desire to extend the project scope south into the industrial area along Railroad Avenue for the market rate condominium portion of the Project. Is this considered a significant deviation from their submitted RFP response? Does the City/eRA wish to convert more of its industrial land to residential? Tllis itern was clarified at the October 14lrl meeting as an error by Mr Hlrmerf.. 4 9. Retail. Auburn is requesting the CRA lease the retail space from them in an amount sufficient to cover their lenders required debt coverage ratio as well as the eRA must locate the tenants for the space. Typically, it is the role of the developer to finance, build and lease the space. Would the project and the CRA be better served working with a commercial developer specializing in developing retail in similar neighborhoods? Board Direction from October 14.2008 Meetina The Board agreed the CRA would not be responsible for leasing and managing the grocery store. Revised MDA - November 08 Auburn added they would agree to consider entering into an agreement to allow a third party commercial developer to develop and manage the grocery store. MDA as of December 9. 2008 Section 18 has been rewritten to read "Phase I shall consist of the development and management of a neighborhood retail complex consisting of approximately 2.5 acres, located on the Seacrest frontage north of Martin Luther King Boulevard by Auburn, or by a partnership between Auburn and a third party or by a third party subject to the agreement of the parties. Auburn may request the CRA advance up to $1,500,000 from the advancement funds designated for Phase 2 which shall then reduce the funds available to Auburn for Phase 2 by the same amount. If such funds are requested for Phase 1, the funds shall be paid at the time the developer closes on its Phase 1 construction financing. The CRA shall cooperate and assist in obtain tenants or buyers for the retail complex." The terms "cooperate" and "assist" should be replaced with more defined activities requested from the CRA by Auburn. 10. Heiaht The Agreement states that Phase IV will be between 7 - 8 stories. Auburns RFP response indicates a maximum height of 2 - 3 stories. Given the communities sensitivity to height, should the number of stories be set for the entire project within the Agreement? Board Direction from October 14.2008 Meetina Discussion was that the Heart of Boynton Community Redevelopment Plan must be amended to address the heighUdensity requested under the MDA Revised MDA - November 08 Per the revised MDA, the height at Federal will be from seven to nine stories Section 11 of the MDA, Land Use, does not specifically state the land use and zoning category Auburn will be requesting MDA as of December 9. 2008 No change. 11. Financial Capacity. Given the requested term of the Agreement a periodic check of the financial health of Auburn is advisable if the Board elects to enter into the Agreement. Should the City/CRA receive audited financials annually? Should the developer demonstrate financial capacity prior to entering into the 5 Agreement particularly since financials submitted in the response to the RFP are over two years old? Board Direction from October 14.2008 Meetina The Board did not provide policy direction on this Issue Mr Hinners stated If' Section 24 the eRA can determinE if Auburn has the financial capacity to undertake each phase However Section 24 does not outline Auburns responsibility in providing financial statements and documentation to the CRA order for the CRA to make a determination of financial capabilitv Revised MDA - November 08 The Section 24 clause st8te~ the con determine it Aul)urn has Ille tin2lrlClai capacity to undertake each phase by '8viewlng financial docun !ents tc i IE provided by Auburn The CRt\ i)p~ 1 ::' clays frorn the date of Ip.ceipl nf jl.l!tllHn ' Ii! 1811CI81 documents to ,e\l18\}\ (-it lei uelernlirll= Flnanel?! c8pabillt \ MDA as of December 9. 2008 No change. 12. Liauidated Damaaes. In the latest version of the Agreement, Auburn is seeking $5M in liquidated damages if the CRA does not fund the requested $13M for Phase IV. Is this request appropriate when the developer has the reasonable expectation of earning a profit on the first three phases? Should the CRA seek liquidated damages if Auburn does not perform under the terms of the Agreement? Board Direction from October 14. 2008 Meetina No Board consensus on this issue Mr Hinners stated the $5M IIquatea damages for Phase IV would be removed from the MDA Revised MDA - November 08 The $5M in liquidated damage8 h8S been removed from HIe revised MDp. MDA as of December 9. 2008 No change. 13. Overhead Reimbursement. If Phase I does not go forward and the CRA elects to end the contractual relationship with the Auburn, Auburn is requesting their overhead expenses related to the project be reimbursed by the CRA. The overhead expense request includes office staff except for the five highest paid executives as well as all third party consultants and contractors but does not have a fee schedule to determine cost. Does the Board feel this is appropriate? If so, at what date does the clock start ticking to reimburse Auburns operational expenses? Board Direction from October 14. 2008 Meetina No Board direction was provided Revised MDA - November 08 Section 24.2 states the CRA will reimburse all of Auburn's verifiable development expenses except for the five highest paid executives The MDA does not specify " start date for expenses to accrue and no schedule was provided listing /-\uburn's remaining staff salaries hourly or otherwise under the reimbursement 6 request. Also, a schedule was not provided to estimate for third-party contractual (such as architects, engineers, surveyors, etc.) expenses as requested in the revised MDA MDA as of December 9. 2008 The current MDA has new language in on Page 16, Section 24.2, line one, "the CRA terminates this Agreement without cause" regarding the CRA's potential obligation of paying Auburn's development expenses and interest thereon in the event of termination. 14. Property Acauisition/Pricina. The Agreement contains no provision for a price cap on property acquisition. If Auburn is placing properties under option contract at prices well above appraised value there will be a funding gap between the as- built appraisal and the funds required to close the construction loan. Is the eRA willing to provide these funds in order to make the project happen? Board Direction from October 14. 2008 Meetina No Board policy direction provided. Revised MDA - November 08 No revisions made. MDA as of December 9. 2008 No change. 15. Rollover of CRA Funds. Auburn is requesting that if CRA funds are not used in a particular phase those funds roll over into the next phase. If CRA funds are not needed in a particular phase, should that amount be deducted from the overall CRA financial commitment? Board Direction from October 14. 2008 Meetina Staff requested a clause regarding verification of costs to determine if all of the CRA funds requested were actually necessary to that particular phase of the project. Mr. Hinners agreed. Revised MDA - November 08 This issue is not fully addressed in the revised MDA Suggested language: "Auburn shall provide the CRA with copies of all loan commitments, funding commitments, property closing statements, third party contracts for costs related to development and construction and a final accounting of project costs upon completion. If upon review of these documents, the CRA feels that its advanced funds were necessary to make the project viable and reasonably profitable, no further action will be necessary. If, the CRA feels that its advanced funds were not all, or in part necessary to make the project viable and return a reasonable profit to Auburn, it can opt to reduce the next Phases advancement by the amount in excess of the amount needed to make that particular Phase viable and profitable If, the eRA's advance payment excess occurs in Phase IV, Auburn shall repay the CRA the amount determined by a third party CPA to be in excess of what is needed to make Phase IV viable and profitable to Auburn, the CRA shall notify Auburn and Auburn shall have 45 days to repay the excess of CRA advanced funds." 7 MDA as of December 9. 2008 New language has been added on Page 7, Section 15, line 4. The second sentence of the Section now reads, "In such event, however, Auburn shall have no right to any designated advancement from the3 CRA for the new phase, until seventy-five percent (75%) of the units planned for he prior phase have received certificates of occupancy or the grocery store has received its certificate occupancy. Prior to reaching seventy-five percent (75%).... 16. Below Market Rate Financina. In the Agreement Auburn states they shall seek below market rate debt financing and grants for the project. Should the savings resulting from securing below market debt financing be deducted from the eRA's financial obligation? Board Direction from October 14. 2008 Meetina The Board directed that the MDA should reflect that in the event that Auburn receives below-market rate financing for any phase of the development then the resulting savings to that particular phase will be deducted from the CRA's advanced payment for that phase. Revised MDA - November 08 This is not addressed in the n:,:vis<?ej MCl! MDA as of December 9. 2008 As the MDA and Exhibit "B" currently stand, there is no reduction in the amount of CRA financial obligation in the event additional funds are received by Auburn in the form of a low-interest loan 8 BLf1C.~J_iN~D 1'C4. f 0' Jt) g MASTER DEVELOPMENT AGREEMENT THIS DEVELOPMENT AGREEMENT ("Agreement") is made and entered into this _ day of ,2008, by and between AUBURN DEVELOPMENT, LLC with an address at 777 E. Atlantic Avenue, Suite 200, Delray Beach, FL 33483 ("Auburn"), and the CITY OF BOYNTON BEACH ("City"), a municipal corporation of the State of Florida, with an address at 100 E. Boynton Beach Boulevard, Boynton Beach, FL 33425-0310 and the CITY OF BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY ("CRA") with an address at 915 S. Federal Highway, Boynton Beach, FL 33435. WITNESSETH: WHEREAS, the City and the CRA have identified certain areas of the City for redevelopment as described in Exhibit "A" attached hereto and made a part hereof; and WHEREAS, Auburn is a developer which specializes in redevelopment and desires to redevelop certain real properties located in the City within its designated CRA District; and WHEREAS, the properties Auburn desires to redevelop are owned by several different property owners, including the CRA; and WHEREAS, in December, 2001, after several meetings with community residents and input from the Treasure Coast Regional Planning Council, the City and the CRA adopted a redevelopment plan entitled the "Heart of Boynton Plan" ("Plan") for approximately 480 acres of the CRA District; and FTL:2587484:-W.12 WHEREAS, to improve upon it and to.reflect changes to market conditions, the City and tilt CRA desire to amend the Plan to reflect a revised Project Plan now contemplated by the City, the CRA and Auburn; and WHEREAS, the City and the CRA agree to have Auburn serve as the developer of the first approximately 26.3 acres to be redeveloped (sometimes referred to herein as the "Project" or "Redevelopment Site"), which development will be located specifically within the Martin Luther King Redevelopment Area; and WHEREAS, through a Request for Proposals ("RFP"), the CRA conducted a competitive process to select a master developer for the Redevelopment Site. In its response to the RFP, the Developer, through its written proposal dated August 7, 2006, set forth its qualifications, to revitalize the Redevelopment Site with the development affor-sale housing, rental housing and neighborhood retail and through its responses to questions during interviews with the CRA (collectively, the "Proposal"); and WHEREAS, this Agreement, after discussions, conversations, negotiations and mutual understandings among the parties, and with the community, the parties believe that it is in the best interest of each party to initiate the process to develop the properties in accordance with the requirements described herein, and in accordance with applicable Florida law, the City's Charter, the City's Code of Ordinances ("Code") and the CRA requirements. NOW, THEREFORE, for and in consideration of mutual benefits and the public interest and other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. Recitals. The foregoing recitations are true and correct and are hereby incorporated herein by reference. All exhibits to this Agreement are hereby deemed a part hereof. FTL:2587484:'l{)12 2 2. Authoritv. This Agreement is entered into under the authority of the Florida Constitution, the general powers conferred upon municipalities by statute and otherwise, the City's Charter, and CRA requirements. 3. Effective Date. This Agreement shall become effective upon the date the last party executes the Agreement. 4. Expeditious Review. The City and the CRA will process, as expeditiously as possible pursuant to the law, consideration of amendments to the City's Land Use Plan and rezonings to change the land use and zoning designations of the Redevelopment Site in order to develop the Project consistent with the Plan. 5. Property Ownership. The parties acknowledge that because some of the properties within the Plan are owned by third parties, the development of such properties by Auburn is contingent upon acquisition of these properties. In the event Auburn is unable to acquire some of these properties, the parties agree that the Plan may need to be modified upon mutual agreement. Auburn has contacted the owners of most of the properties within the approximately 26.3 acres and has concluded that the boundaries of the four phases may have to be changed from the initial boundaries to reflect that some owners refuse to sell for any price, and some are demanding totally unreasonable prices or terms. The parties agree that both the first phase, planned for a gated senior rental community, and the fourth phase, planned for condominium building(s), must be built on contiguous parcels, whereas the second phase, planned for single family and townhouse buildings can be built on non-contiguous parcels if Auburn deems the acquisition of contiguous parcels to be too difficult or impossible. 6. Duration of Ae:reement. The duration of this Agreement shall be for a twelve (12) year period from the date this Agreement is fully executed by the parties hereto ("Effective Date") FTL:2587484:4012 3 and will only be extended by the mutual consent of the parties or their successors m interest which extension shall not be unreasonably withheld, delayed, or conditioned. 7. Phased Development. The parties acknowledge and agree the Project is contemplated to be developed in four (4) phases with up to 700 total dwelling units. See Exhibit "A" for a more particular description of the Project and the properties proposed for each phase of development. The exact schedule for develoDment and what type of develonment will occur in each Dhase are subiect to cham.!e based UDon the mutual aereement of the Darties. Except as specifically set forth herein, the CRA shall have no obligation to advance funds or land for a phase until the previous phase is substantially complete. Auburn acknowledees and aerees that all CRA funding and CRA acauisitions set forth in this Allreement shall be conditioned UDOn the receiDt of adeauate fundin!l bv the CRA throueh its taxine Dowers or bondin!l caDabilities. It is the intent of the eRA: however, to obtain funding and acquire land throughout the approximately 26.3 acres as expeditiously as possible if it is determined that an acquisition is prudent at a particular time. 8. City and CRA Land. Within thirty (30) days after the City and the eRA receives written notice from Auburn that it intends to close, within the next thirty (30) days, on its construction financing and on the last of any parcels it intends to acquire, in Auburn's sole discretion, for a particular phase, the City or the CRA, as applicable, shall convey to Auburn, any portion ofland they own located within that particular phase, for the nominal price of $10, with marketable title in accordance with Florida Statutes, and free and clear of all encumbrances. The conveyance shall take place at the same time as Auburn's closing on its construction financing for that particular phase. 9. Development SuPPort. The CRA and the City shall provide all reasonable assistance requested by Auburn in obtaining licenses, approvals, clearances or other cooperation from local, FTL:2587484:-W12 4 State, or Federal agencies, the Mayor's Office, the City Commission and any other local governing bodies. The CRA and the City shall support, and seek the support of others, for any applications submitted by Auburn for allocations ofLIHTCs, tax-exempt bond volume cap, CWHIP funds, and other State or local funding needed for the Project. 10. Overall Commitment. The CRA, the City and Auburn shall cooperate with each other in outreach to the neighborhood to provide information to the community about the Project. Auburn intends to work with locallv based communitv develooment coroorations and other non- Drofit lrrOUOS for the benefit of the Proiect. The CRA, the City and Auburn will take all reasonable actions which are within their respective authority to accomplish the Project and to ensure the maintenance of orooerties within the area as reauired bv the City Code. Where any resources anticipated by the parties become unavailable in whole or in part, the CRA, the City and Auburn will work together to consider changes or amendments to the Project which will still accomplish the original goals set forth in this Agreement to the maximum extent possible given available resources. 11. Land Use. The CRA, the City and Auburn agree that time is of the essence. The CRA and the City will expeditiously process the land use plan amendments and rezonings needed for the Project, once a complete application is submitted to the City. The City shall endeavor to complete consideration of the land use and zoning approvals for Phase 1 and Phase 2 by Mafeh -M,Jooe 1. 2009. The City shall become the applicant for all necessary land use and zoning changes for the Project if requested to do so by Auburn. Auburn and the CRA will provide assistance to the City with these changes. 12. Fundine: Conditions. It is agreed to, and acknowledged by, the Parties, that the CRA advancements to Auburn described herein shall be conditioned upon the appropriation offunds in the CRA's budget for the fiscal year in which Auburn requests the advancement for a particular phase. FTl:2587484:40.12 5 In the event that the CRA budget for appropriations is reduced from the projected amount in the year an advancement is requested, the advancement shall be reduced in the same percentage as the percentage reduction in the CRA appropriations budget. All funds advanced by the CRA to Aubum for a particular phase shall be advanced simultaneously with Auburn's actual closing on the construction financing for that particular phase. Aubum shall provide an opinion letter prepared by a certified public accountant on the one, two and three year anniversary of the payment evidencing how Auburn utilized the advancement funds. 13. Future eRA Land Acquisitions. Prior to Auburn's notice to the City and the CRA that it intends to close, within the next thirty (30) days, on its construction fInancing for a phase, the CRA may use, subject to Auburn '$ coment, the advancement funds designated for a particular phase to purchase land,._~!:!J:?j~:.~!_!9_6_~I]:)l.lIg,~COJ}~~n~, for that particular phase. Any such land acquired bv the CRA in such a manner, shall be conveyed to Auburn for ten (10) dollars with marketable title in accordance with Florida Statutes, free and clear of any encumbrances at the same time as Auburn's closing on its construction financing for that particular phase. Any CRA advancement shall be reduced by the dollar amount the CRA paid to acquire any land approved by Auburn between the Effective Date of this Agreement and Auburn's notice it intends to close on its construction financing. 14. Grants and Loans. Auburn and CRA shall diligently pursue grants, loans and other funding so as to reduce the amount the CRA is obligated to advance to Auburn for each phase, as well as to accelerate the rate ofland acquisition and construction of the Project. See Exhibit "B". attached hereto and made a part hereof for a more detailed example of how this may work. In the event that the CRA does not have to pay the maximum advancement amount for a given phase due to any grants, loans or other funding obtained by Auburn or the CRA for that phase, the amount of such FTL:2587484:4-Q.12 6 advancement not paid to Auburn shall roll over for use in the next phase ("Rollover Amount"). In the event Rollover Funds exist for a subsequent phase, Auburn may choose to begin a subsequent phase while still constructing the prior phase. Upon Auburn's request in writing, the CRA shall release the Rollover Funds simultaneously with Auburn's closing on its construction financing for the subsequent phase. Auburn and the eRA agree that in order to acquire tax-credit financing, Auburn may need~ to develop Phase JJ" fIrst to meet the tax credit grocery store proximity requirement. The parties acknowledge that Phase ~~ funding and construction will, in all likelihood, take place before Phase l~ due to opportune acquisitions, a shorter approval period for single family development and available funding. 15. Option to Proceed. Auburn shall have the option, in its sole discretion, to proceed with the development of a subsequent phase of the Plan without completion of a prior phase. In such event, however, Auburn shall have no right to any designated advancement from the CRA for the new phase, until the prior phase is subs1rmtiaUy complete. Prior to substantialseventv-five oercent (75%) of the units olanned for the orior ohase have received certificates of occuoancv or the ~ocerv store has received its certificate of occuoancv. Prior to reaching: seventy-five oercent (75%) completion of the prior phase, Auburn, however, may utilize any other funds received from other governmental agencies, grants or loans and Rollover Funds, if any exist, whieh the. The CRA shall pay anv Rollover Funds at the time of Auburn's closing on its construction financing for the subsequent phase. 16. Eminent Domain. In the event Auburn determines, in its sole discretion, that it has exhausted all efforts to purchase a parcel needed for an assemblage for a particular phase, the City agrees, upon a request in writing from Auburn or the CRA, to consider. but shall not be oblilZated to. the use ofits eminent domain powers to acquire such property for a public purpose. The narties shall FTL:2567484:4012 7 share eQually in any attorneys' fees (includimr Daralegal fees) and costs arising out of such litigatio~ and shall Day for such mODem. if aCQuired. by utilizing CRA funds for the Proiect. The Cito!1f1l1 hl.wt<.lh~_JigbJJ&LSe1ect counsel for such litigation and to terminate such litigation at any time in its sole discretiofl. The City and the CRA, additionally, agree to consider requests to amend the Plan due to the unavailability of certain properties for the Project. 17. Chapter 163 Development Ae:reement. The parties acknowledge that when the land use designation for a particular phase of the Project becomes consistent with the City's Land Use Plan, and all applicable appeal periods have expired, the parties intend to process as expeditiously as possible a Florida Statutes, Chapter 163 Development Agreement for each such phase. PHASE 1 18. Phase 1 shaJLcimsist.Q.fthe.Jl~cY._elQnme.ntand manallement QLl.l.n~ighb.QI1LQ.QS,I r~t.ail ~_QInnlex.....~Qm;isJiHgJ)fapPtQx.il:n.glelL2.5....~Q.r~sL.l.Q~~l~Q..QJLll1!:;. Setl~[~.s.t...frQn.t.m,(e 1191Jh.pJ.M.a.1'liu. L.~)J.];).erJ~.ingJ3QQ.l.~vflni by Auburn. or by a Dartnershin between Auburn and a third Dartv or by a third Darty subiect to the alITeement of the Darties. Auburn mav reQuest the CRA advance un to $1.500.000 from the advancement funds desillnated for Phase 2 which shall then reduce the funds available to Auburn for Phase 2 by the same amount. If such funds are reauested for Phase 1. the funds shall be naid at the time the develoner closes on its Phase 1 construction financinll~..T}1~_ (.8:A>. ~h~)1 c09J2~!'a~e:. a.n!:LEl_~~i.?lj.rLQQ!aininu t~!1.a~}.!~.gX..I:>.l:!~ers fqr the_r.~!?:!L<::2mple_x. PHASE 2 19. Phase 2 shall consist of up to 160 senior low income rental apartment units (on up to 4 acres ofland, designated for 4G3.Q units per acre) and a senior center. Auburn shall determine, in its sole discretion, the exact number of units to be developed and the exact location of the land to be used for Phase ~b The CRA' s contribution to Phase!~ shall be the land it owns in Phase 1~ as of FTL:2587484:~Q~ 8 the Effective Date of this Agreement, and a payment of up to, but not to exceed, a $1,920,000 advancement, which amount may be reduced pursuant to the terms and conditions contained herein. The payment by the CRA is based upon the maximum number of units funded by Tax. Credits, and in the event less than 160 units are developed, the advancement shall be reduced proportionately on a unit by unit basis. For example, if the development is downsized to 140 units, the cash advance shall be 1401160th of $1,920,000, or $1,680,000. The CRA agrees to enter into a purchase and sale agreement with Auburn for the CRA owned land in Phase .J:~ for the purpose of demonstrating site control to the Florida Housing Finance Corporation. The draft purchase and sale agreement is attached hereto as Exhibit "e". 19.1 +8+Aubum shall acquire, or place under contract, on or before December 31, 2012, all the Phase 1~ properties it intends to acquire, in its sole discretion, for Phase 1. Within thirty (30) days after the City and the CRA receive written notice from Auburn that it intends to close within the next thirty (30) days on its Phase.J-~ construction financing and has fee simple title or is under contract for the balance ofthe properties it intends to acquire, in its sole discretion, for Phase l;~ the City and the CRA, as applicable, shall convey to Auburn, simultaneously with Auburn closing on its construction financing, the Phase 1~ land acquired by the City or the CRA, either before or after the Effective Date ofthis Agreement, for the nominal price of $1 0, with marketable title in accordance with Florida Statutes and free and clear of all encumbrances. At the same time, the CRA shall pay Auburn up to a maximum advancement of$l ,920,000 less any monies expended by the CRA for acquisition ofland within Phase 1~ since the Effective Date of this Agreement, but not before, and less any grants, loans or other funding obtained by Auburn or the CRA for Phase 1.1.. Auburn shall provide all other funds for the acquisition and development of Phase -l;~ through ...~'.i \'f FTL:2587484:-W12 9 private sources, loans, grants from other govermnental agencies or mortgage lenders it selects. in i1s sole discretion. 19.2 ~At the same time as Auburn closes on its construction financing for Phase -l-;~ the CRA shall also provide a demolition grant in the amount of$300,000 for the cost of demolishing, clearing, grubbing, and removing of all undergrOlmd utilities and subsurface structures and bringing the site to level grade. In the event that the actual demolition cost is less than $300,000, then the balance of these funds shall be used by Auburn for Phase .J:.~ construction costs. 19.3 ~ The senior center shall be a minimum of3,500 square feet and shall be open to the public but also serve as a clubhouse and leasing office for the Senior Apartments. There shall be access from the gated senior apartments to the senior center through a pedestrian access gate. Auburn shall manage and operate the senior center and shall have the right, in its sole discretion, to contract with a third party for the center's management and operation. PHASE 2~ 20. ~Phase 2J shall consist of up to 237 townhouses, condominiums or single family homes, or as modified by mutual consent of Auburn and the CRA, on approximately twelve (12) acres. Auburn shall develop these units under the City's Workforce Housing Ordinance. Auburn shall commence acquisition of the properties for the Phase 2Phase 3 assemblage ("Phase 2~ Assemblage") as soon as it desires to do so but no later than the date upon which it haG substantially completed Phase 1 construetioHseventv-five oercent (75%) of the units olanned for Phase 2 construction have received their certificate of occuoancv. It is agreed that the Phase 2~ land acquisition and development may occur in two (2) or more subphases, as funding sources and market conditions allow. FTL:2587484::J.Q.12 10 20.1 +9+ Within 30 days after the City and the CRA receive written notice from Auburn that it intends to close, within the next thirty (30) days, on its Phase ~~ construction fmancing and has fee simple title, or is under contract for the balance of the properties it intends to acquire, in its sole discretion, for Phase 2-~ the City and the eRA, as applicable, shall convey to Auburn, for the nominal price of $10, simultaneously with Auburn's closing on its Phase ~~ construction financing, the Phase ~~ land acquired by the City or the CRA, with marketable title in accordance with Florida Statutes and free and clear of all encumbrances. At the same time, the eRA shall pay Auburn, up to a maximum advancement of $2,844,000, less any monies expended by the CRA for acquisition of land within Phase ~~ since the Effective Date of this Agreement, but not before, and less any grants, loans or other funding obtained by Auburn or the CRA for Phase ~l.. Auburn shall provide all other funds for the acquisition and development of Phase :l~ through private sources, loans, grants from other governmental agencies or mortgage lenders it selects, in its sole discretion. 20.2 ~At the same time Auburn closes on its Phase;~ construction financing, the CRA shall provide a demolition grant in the amount of $275,000 to Auburn to cover the estimated cost of demolishing, clearing, grubbing, removing of all underground utilities, subsurface structures and bringing the Phase ~~ site to level grade. If the actual demolition cost is less than $275,000, then Auburn shall use the balance of these funds for Phase ~~ construction costs. 2113. +9-d-Within three (3) months after Auburn commences construction of the Phase :l~ units, the CRA shall complete the acquisition of the land necessary for the Phase :l;1 streetscape improvements illustrated in Exhibit "A". Upon completion of such acquisition, the GRA~ shall design and construct the proposed Phase :l~ streets cape improvements which may include, but are not limited to, the construction of the town circle, pavers, benches, fountains, FTL:2587484:4G12 11 landscaping as well as curbs, gutters, parallel parking spaces, sidewalks, lighting and signage. Hu:: CRA shall Dav UD to a maximum of$l,OOO,OOO to the City for such imDrovements. The CRA shall discuss with the owners of the church adjacent to the town circle, allowing the CRA to renovate the exterior ofthe church. The CRA shall substantially complete the streetscape improvements within one (1) year after Auburn has commenced Phase;1.3. construction. 2004 +9A-Auburn shall designate a number of the Phase ;1.~ units as workforce units which shall meet the requirements of the City's Workforce Housing Ordinance. The CRA shall create a dedicated $2,500,000 fund earmarked exclusively for assistance to the purchasers of the Phase 2 "';orkforce~ units to assist them in qualifYing for mortgage financing according to their needs and abilities, until the dedicated $2,500,000 fund is exhausted. PHASE 3 20. Ph.ase 3 shal-I-e-H'H-sist-f)t~-he--a~ei-gltl3et~leeEl-ret-aH-OOf}1:j3'l.€*€BR:5i-sting of apprO'16fl3:atel.,. 2.5 ucr6:~, locnt8d.-B&~ae-res-tc.J.ffiH{1tg~~ilher King Be-ulevard. ,^..uburn shall begin oonstruetion of Phase 3 no later than the date seyenty five percent (75%) of the Ph.ase 2 units are sold to third pai.iy buyers. The CR:A-s-J::la.I~te-atlEl-assist .'\::.1bum iA-t'11)ffiiffi-flg temmts or buyers fef-tbe--retai-I-6(-~x. Auburn und the CR./\ agree to consider entering iAto an agreement to alIa'.'.. a third party commercial developer to develop and manage Phase 3. PHASE 4 21. Phase 4 shall consist of two (2) four-story buildings and two (2) mid-rise eight-story buildings on approximately eight (8) acres. There will be two (2) buildings on Federal Highway and two (2) buildings on the west side of the FEe railroad tracks. The buildings shall contain approximately 304 residential units with some retail and office space in the Federal Highway buildings. Auburn shall designate twenty percent (20%) ofthe units as work force units which shall FTL:2587484:4-G12 12 meet the requirements of the City's Workforce Housing Ordinance. Auburn's plan is to construct a bridge connecting the two (2) buildings on Federal Highway with the two (2) buildings on the west side of the FEC railroad tracks. The construction of the bridge shall require approvals from the FEC. The City and the CRA agree to cooperate and assist in obtaining these approvals. 21.1 The CRA shall provide a demolition grant in the amount of$150,000 to cover the cost of demolishing, clearing, grubbing, removing all underground utilities, subsurface structures, and bringing the site to level grade. The CRA shall pay this grant at the same time it pays Auburn the Phase 4 advancement described in Subparagraph 21.3. Ifthe actual demolition cost is less than $150,000, then Auburn shall use the balance of these funds for Phase 4 construction costs. 21.2 The two (2) buildings on the west side of the Phase 4 development shall consist of two (2) or three (3) floors of structured public parking and five (5) or six (6) stories of residential units above the parking with no more than a total of eight (8) stories in such structures. Auburn shall commence construction of the parking structures after Auburn has completed the acquisition of all the Phase 4 parcels it intends to acquire, in its sole discretion, and has sold 75% of the Phase 2 units to third-party buyers. Auburn shall construct, at its own expense, all the residential units above these parking structures. 21.3 Within thirty (30) days after the City and the CRA receive written notice from Auburn that it intends to close, within the next thirty (30) days, on its Phase 4 construction financing and has fee simple title, or is under contract for, the balance ofthe properties it intends to acquire, in its sole discretion for Phase 4, the CRA, simultaneously with Auburn's closing on its Phase 4 construction financing, shall J*lYloan to Auburn an advancement of up to $1,216,000 for the Phase 4 development costs and a-Ioan ffi-the lump sum of $11,704,000 for the construction of the two (2) parking garages~ subject to the condition that 75% of the Phase ~~ units have been sold to third- FTL:2587484:W.12 13 party buyers. The eRA fundin2 for the olanned Phase 4 develooment is contin2ent uoon approval for bond financin2 in a bond validation oroceedi11lz. In the event that the bond validation oTOceedim.1 does not oermit bond financin2 for the oarkin2 QaraQes. then the loan contemolated for the oarkim2 2araQeS shall be desi2nated for the construction of the work force housin2lU1its. The exact amount of the advancement or the loan may be less than the amount set forth herein if Auburn and the CRA are able to obtain grants, loans or funding from other sources or from remaining Rollover Funds. Auburn shall provide all other funds for the acquisition and development of Phase 4 through private sources, grants from other governmental agencies or mortgage lenders it selects, in its sole discretion. The CRA's Phase 4 advunccmentloans shall initially be a-subordinate, interest free ffiaHloans against the Phase 4 property, but shall be forgiven by the CRA at the time of the completion of construction and the issuance of the final certificates of occupancy for the Phase 4 buildings. 21.4 If Auburn determines that it is economically infeasible or impossible to acquire the property located on the northeast comer of the Project which is currently utilized for adult entertainment, then Phase 4 may be moved to the south, but in no event shall the total Project area exceed 26.3 acres. In the event that this change is made, Auburn shall construct an attractive, architecturally compatible three or four story commercial building on the northwest corner of US I and Martin Luther King, JI. Boulevard ("MLKIt), and the buildings envisioned for the Phase 4 area north ofMLK shall be built along Federal Highway and Railroad A venue to the immediate south of the currently designated Phase 4 area. The total Phase 4 area may be larger, but not smaller, than is currently envisioned, but the total Project may not exceed approximately 26.3 acres. 22. General Contractor. Auburn shall have the right to serve as the general contractor for all phases of development and, in the alternative, shall have the right to select, in its sole discretion, general contractors for each phase of development. FTL:2587484 :-W12 14 23. Permits. The City or the CRA shall designate a specific Building Department representative to assist in the processing of building permits for the Project. 24. Termination by eRA. The CRA's obligations to provide any funds to Auburn is contingent upon Auburn providing to the eRA, at least forty-five (45) days prior to the payment of any CRA funds, an income tax basis financial statement representing the financial condition of Auburn Development, LLC prepared by a certified public accountant. The CRA, in its sole and absolute discretion, shall determine if Auburn has the financial ability to commence and complete the particular phase for which funding is requested. In the event, in the sole and absolute discretion of the CRA, Auburn lacks the financial ability to commence and complete that phase, then the CRA may terminate this Agreement by providing a written notice of termination to Auburn, within 15 days after receipt of the financial statement. Within forty-five (45) days ofreceipt ofthe written notice of termination from the CRA, Auburn shall convey to the CRA all of the land in the Project it previously acquired, with marketable title in accordance with Florida Statutes and free and clear of any encumbrances. In the event, however, that Auburn has secured a construction loan commitment from a commercial lending institution for the construction of such phase, then the right of termination contained herein shall be null and void. 24.1 Phase l~ is intended to be a Housing Credit senior community of up to 160 apartment units and a senior center. If Auburn is unable to obtain an award of Housing Credits for the Phase l~ Senior Apartments from the Florida Housing Finance Corporation, or a successor agency, by January 15,2012, then the CRA shall have the option to terminate this Agreement aflEl require ...A~ubHm to convey to the eRA all the land in the Project acquired by Aubumbv orovidinl! written notice of same to Auburn. In such event. within forty-five (45) days ef~ receipt of the written notice of termination from f...uburnthe CRA. Auburn shall CQll..v~V to the..GRA1ll.I...Ultiandin FTL:2587484:tG12 15 tJ1~J!mj~G.LftGll\JiL~dJ),yi\1!b~IJIn with marketable title in accordance with Florida Statutes. and free and clear of anv encumbrances. At the time of the convevance. the CRA shall nav Auburn the amount Auburn naid for the land less any CRA contributions for the land and each Dartv shall no longer have anv ongoing obligations to the others. 24.2 In the event of suoh '.:ermination by the eRA. pursuant to the terms 0.00 conditions hereinthe CRA terminates this Agreement without cause, the CRA shall pay Auburn, at the time of conveyance of the land, the amount Auburn paid for the land plus Auburn's verifiable development expenses and costs less any CRA contributions, with interest on the net amount at the rate of7.5% per annum from the Effective Date of this Agreement. All of Auburn's development rights for the balance of the Project shall be forfeited and the Agreement shall terminate with each party having no ongoing obligations to the others. Auburn's verifiable development expenses shall not include the salaries of Auburn's fiye (5) highest paid executives. Documentation for verifiable expenses shall include quarterly expense reports and copies of executed contracts with any third party contractors and consultants. Any cost incurred in developing the Request for Proposals for the Project shall not be included. 25. Termination bv Auburn. If Auburn is unable to obtain Housing Credits for the Phase -1-2 Senior Apartments which are acceptable to Auburn, in its sole discretion, by January J 5. 2012, Auburn shall have the right to terminate this Agreement und eoch party sh-a-l.J.-.oo.-lBflger have (my ongoing obligations to the others. f~dditionully, in the event ofa substantial default by the CRA. induding, but not limited to, a failure of the CRA to fund a particular phase pursuant to the temlS and conditions herein, then Auhurn sholl have the right to terminate this Agreement. If .^..uburn elects to terminate this .Agreement pursuant to the terms and conditions set forth herein, then the CRf~ shall purchase, by nroyiding written notice to the eRA. In such event Auburn shall convey to FTL:2587484:-1.Q12 16 the CRA all the land in the Proiect acauired bv Auburn within forty-five (45) days of the CRA's receipt of Auburn's notice of termination, all the property previously acquired by Auburn 'tVithin the Project at the pries ,^~uburn paid for such property plus f~uburn's verifiable development 6Jtpenses and costs, less CR.'\. contrib'~ttions, vrith interest on the net amount at the rate of 7.5% per annum intorest from the EfIecti':e Date of this Agreement. In the s'(ent of ~JUch termination, all of f.uburn's deyelopment rights for the balance onhe Project :Jhall be forfeited and the f~greenlent shall terminate withwritten notification of termination. At the time ofthe convevance. the CRA shall Dav Auburn the amount Auburn Daid for the land less anv eRA contributions for the land and each party hayiR~ll no IonIZer have -W..:Longoing obligations to the other. Documcatatial1 f-or ,\ubum's verifiable de'lclapm8fl:t expenses shall be the same as set forth aboye in Subparagraph 21.2.Q1:.bm... 26. Notice. All notices pursuant to this Agreement shall be sent by hand delivery, U.S. Postal Service, return receipt requested, or by a nationally recognized delivery service such as Federal Express or United Parcel Service to the following addresses: CITY: with a copy to: CRA: with a copy to: FTL:2587484:4Q12 17 Auburn: with a copy to: Thomas Hinners Auburn Group 777 E. Atlantic Ave., Suite 200 pelrav Beach, FL 33483 Susan P. Motley, Esq.___ Ruden McCloskv 200 E. Broward Blvd., 15th Floor Fe Lauderdale, FL 33301 THE RESTREMAINDER OF mt,S-PAGE I&-INTENTIONALL Y LEFT BLANK FTL:2567484:-W12 18 AUBURN: AUBURN DEVELOPMENT, LLC WITNESSES: Print name: By: Print Name: Title: Print name: day of ,2008 COUNTY OF ) ) SS: ) STATE OF I HEREBY CERTIFY that on this day, before me, an officer duly authorized in the State aforesaid and in the County aforesaid to take acknowledgments, the foregoing instrument was acknowledged before me by , the of AUBURN DEVELOPMENT, LLC, freely and voluntarily under authority duly vested in himlher by said company. He/She is personally known to me or who has produced as identification. WITNESS my hand and official seal in the County and State last aforesaid this _ day of ,2008. Notary Public Typed, printed or stamped name of Notary Public My Commission Expires: FTL:2587484:'\.012 19 CITY WITNESSES: ClTY OF BOYNTON BEACH, a Florida municipal corporation Bv: Print Name: , City Manager __ day of _____. .2008 Print Name: ATTEST: APPROVED AS TO FORM: BY:__n , City Clerk . City Attorney STATE OF FLORIDA ) ) ss: COUNTY OF BROW ARD ) I HEREBY CERTIFY that on this day before me, an officer duly authorized in the State aforesaid and in the County aforesaid to take acknowledgments, the foregoing instrument was acknowledged before me by , as City Manager of the City of Boynton Beach, a Florida municipal corporation, on behalf of the City, freely and volWltarily under authority duly vested in him by said municipal corporation and that the seal affixed thereto is the true corporate seal of said mWlicipal corporation. He is personally known to me or has produced as identification. WITNESS my hand and official seal in the COWlty and State last aforesaid this _ day of ,2008. Notary Public, State of Florida My Commission Expires: Typed, printed or stamped name of Notary Public FTL:2587484 :4-012 20 WITNESSES: Print Name: Print Name: ATTEST: , City Clerk STATE OF FLORIDA ) ) ss: COUNTY OF BROW ARD ) eRA: CITY OF COMMUNITY AGENCY BOYNTON BEACH REDEVELOPMENT By: day of , 2008 APPROVED AS TO FORM: By: , CRA Attorney I HEREBY CERTIFY that on this day before me, an officer duly authorized in the State aforesaid and in the County aforesaid to take acknowledgments, the foregoing instrument was acknowledged before me by , as Administrator of the City of Boynton Beach Community Redevelopment Agency, on behalf of the CRA, freely and voluntarily under authority duly vested in him by said corporation and that the seal affixed thereto is the true corporate seal of said CRA. He is personally known to me or has produced as identification. WITNESS my hand and official seal in the County and State last aforesaid this _ day of ,2008. My Commission Expires: FTL:2587484:-1-G12 21 Notary Public, State of Florida Typed, printed or stamped name of Notary Public FTL:2587484:+012 22 FTl:2587484:4G.12 LIST OF EXHIBITS Exhibit "A" RedevelQoment Areas Pursuit of Grants Purchase and Sale Allreement Exhibit "B" Exhibit "e" 23 EXHIBIT II A" FTL:2587484 :-W12 24 Document comparison done by Workshare DeltaView on Tuesday, December 09,2008 4:42:09 PM Document 1 Document 2 Renderin set interwovenSite://FTLDMS 1 /FTL/2587484/1 0 interwovenSite://FTLDMS 1 /FTL/2587484/12 standard Count 84 85 12 12 o o 193 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD ON TUESDAY, DECEMBER 9, 2008, AT 6:30 P.M. IN CITY COMMISSION CHAMBERS, BOYNTON BEACH, FLORIDA PRESENT: Jerry Taylor, Chair Jose Rodriguez, Vice Chair Woodrow L. Hay Marlene Ross Ron Weiland Lisa Bright, Executive Director James Cherof, Board Attorney I. Call to Order - Chair Jerry Taylor Chair Taylor called the meeting to order at 6:30 p.m. II. Pledge to the Flag and Invocation Mr. Hay offered the invocation followed by the Pledge of Allegiance to the Flag. III. Roll Call The Recording Secretary called the roll, and a quorum was present. IV. Agenda Approval: A. Additions, Deletions, Corrections to the Agenda Motion Vice Chair Rodriguez moved to table the following items to the first meeting in January, 2009: Chair Taylor pointed out a second was not necessary on a motion to table. . XI. Old Business, Item F, "CRA Staffing Plan" and Item G, "CRA Website"; and . VI. Consent Agenda, Item R, "Approve Rescission of HR lLA with City" and Item S, "Approve Revised Benefits ILA with City." Chair Taylor believed the Board was required to address Items Rand S under Consent Agenda. Vice Chair Rodriguez felt the items could be addressed retroactively in January. 1 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida December 9, 2008 Lisa Bright, Executive Director, expressed concern about slanderous accusations leveled against her at the last meeting, and she noted for the record that she prepared a chronology to address her concerns under Items F and G. Members of the public had approached her in this regard as well. She acknowledged it was within the Board's purview to table the items to the January meeting. The motion to table Item F, "CRA Staffing Plan" passed 3-2 [Chair Taylor and Mr. Hay dissenting). The motion to table Item G, "CRA Website" failed 2-3 (Chair Taylor, Mr. Hay and Ms. Ross dissenting). Chair Taylor called for discussion on the motion to table Item R, "Approve Rescission of HR lLA with City." Ms. Bright explained this item had been included in the budget and the Board previously agreed it should be rescinded. Motion to table Item R, "Approve Rescission of HR lLA with City" failed unanimously. Motion to approve Item S, "Approve Revised Benefits ILA with City" failed unanimously. In summary, it was noted only Item F, "CRA Staffing Plan," under XI. Old Business was tabled. With regard to VI., Consent Agenda, Item I, "Approval of Funding up to $20,000 from the Residential Improvement Program to Annet Lee," Ms. Bright noted Ms. Lee passed away, and the item should, therefore, be removed from the Agenda. Ms. Bright distributed an agenda item requested to be added by a private entity and members of the community. The request was for lot use and funding for the Heart of Boynton Community Association, Inc.'s 2009 Heritage Awareness Celebration. Chair Taylor suggested this item be added under XII. New Business, Item B. B. Adoption of Agenda Motion Mr. Weiland moved to approve the agenda as amended. Mr. Hay seconded the motion that passed unanimously. V. Announcements & Awards A. Annual Holiday Boat Parade, Friday, December 12, 2008 2 ~~~qY~T2~ eRA ill East Side-West Side-Seas'lde Rena'lssance eRA BOARD MEETING OF: December9,2008 I I Consent Agenda I X I Old Business New Business Legal Other SUBJECT: eRA Staffing SUMl\1ARY: At the November 5, 2008 CRA Board Meeting, Board member Rodriguez asked to discuss a staff issues relating to the Administrative Assistant position that had been eliminated in the 2009 budget. The following are portions of the meeting minutes: "Vice Chair Rodriguez discussed a staff issues relating to the Administrative Assistant position that had been eliminated in the 2009 budget. An individual had filled the position during Family Leave for another staff member. He questioned why the position continued to be funded. "Ms Bright advised that the position was not eliminated, it was left unfilled. She had sent correspondence to the Board advising the individual was working on a legal project, involving the transfer of 25 boxes of files from Lewis, Longman & Walker that could not be archived unless reorganized and integrated into the existing file system." "Vice Chair Rodriquez questioned why the person who was supposed to be working on the special legal file project was answering the phone, performing administrative duties and listed on the CRA Website as the Administrative Assistant.. . .He thought that the only positions budgeted were those filled at the time.... Vice Chair Rodriguez's concern was that the Board had been mislead regarding the elimination of the position... He felt that it was an executive Board and that every discussion should be completed in a public setting. Discussions should not be held behind closed doors with individuals, rather openly and publicly" The attached document outlines the history of CRA Staffing changes FISCAL IMP ACT: Florida Employer Solutions HR Study - $6,500.00 Workload Indicators, Analysis of Jobs, Job Descriptions, Work Plans & Analysis - $11,547 Board Governance - $9,474 Performance Appraisal-Staff - $6,800 Performance Appraisal-Executive Director Position-$3,200 Salary Survey, Job Classifications & Organizational Chart-$4,812 Total Cost for HR Program - $42.334 T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by Meeting\FY 2008 - 2009 Board Meetings\ 12-9-2008 Meeting\CRA Staffing.doc .... ~.\\\L~.;i. f /" .\\~ r. :-\/ ( "' ~~qY~T2~ICRA . East Side-West Side-Seaside Rena",ssance CRA PLAN, PROGRAM OR PROJECT: Community Redevelopment Plan T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by Meeting\FY 2008 - 2009 Board Meetings\12-9-2008 Meeting\CRA Staffing.doc Responses to STAFFING statements made at the November 5th eRA Board Meetina: Rodriguez Statement: "Vice Chair Rodriguez inquired why the position of Administrative Assistant continued to be funded even though the position had been eliminated in the 2009 budget." Response: The position of Administrative Assistant remains in the Agency's organizational chart as an unfilled, but unfunded position. There are also three other positions on the organizational chart, Planning Director, Economic Development Director and Small Business Development Specialist that are unfunded as well. These four positions were not funded in the FY 08/09 budget. Rodriguez Statement: "Vice Chair Rodriquez questioned why the person who was supposed to be working on the special legal file project was answering the phone, performing administrative duties and listed on the CRA Website as the Administrative Assistant." Response: When the Vice Chair called the CRA office, the Administrative Services Manager, Ashley Buckley, had only been back from maternity leave for a few days. There was some overlap during the last week of October to allow the transitioning of projects. Rodriguez Statement: "He thought that the only positions budgeted were those filled at the time." Response: The budget allows $40,000 for temporary labor for situations in which the Executive Director deems necessary to hire additional workers to accomplish the Board's agenda. Rodriguez Statement: "Vice Chair Rodriguez's concern was that the Board had been mislead regarding the elimination of the position." Response: The position was not eliminated but was not funded. The organizational chart and salary chart were distributed to all Board members during the budget process. The organizational chart clearly identifies the unfunded positions. Rodriguez Statement: "Vice Chair Rodriguez inquired if the CRA Attorney had any knowledge of the files being discussed" Response: Attorney James Cherof's office was to pick up the files from the Agency's prior legal firm, Lewis, Longman and Walker after the change of legal representation in June of 2007. However, the files remained in the old attorney's office until they notified the Executive Director that they had to be removed. The Attorney and the Executive Director discussed in late summer that the files would be moved to the CRA office to be organized for eventual documentation storage per state statues. Rodriguez Statement: "The Vice Chair felt that it was an executive Board and that every discussion should be completed in a public setting. Discussions should not be held behind closed doors with individuals, rather openly and publicly" Response: The Vice Chair meets regularly with the City Manager who, organizationally is in the same lateral position as the Executive Director of the CRA. All business of the CRA agency is conducted at the Board meetings. No approval of contracts, policy direction, funding decisions, etc. is made outside of the meetings unless it falls under the purview of the Executive Director's authority per the Purchasing Policy of the Agency. IIJIRY~T8~iCRA .. East Side-West S",de-Seas",de Rena",ssance Assistant Director Executive Director I - ~ Planning Economic Marketing & Finance Director Director Development Communications Director Director Finance Development Small Business Special Events Development Assistant Manager S ecialist Manager ~ To be hired In recruitment Chronolol!V of CRA Al!encv Staffinl! and HR Plan Implementation: . November 7, 2001- CRA Board seeks independent staff . November 20, 2001- City Commission direct's staff to draft an ordinance to allow the CRA to hire an outside director and staff . May 24, 2005 - Consideration of the Assistant Director's Contract - "Vice Chair Tillman asked Ms. Bright what she could bring to the CRA that would make it better. Ms. Bright presented her background in various areas. Mr. Hutchinson had informed her that her role would be more in operations and the dav-to-dav manaeement of the CRA. She also has experience in redevelopment, particularly historic preservation and grant funding. Vice Chair Tillman noted the CRA is need of a well-defined human resource element within its oreanization and Ms. Brieht thoueht that one of the reasons she was selected was due to her backeround in human resources. In her current position in Delray Beach CRA she is in charge of human resources. She has spent eight years reorganizing Fortune 500 companies and has a great deal of experience in this area." . December 15, 2005 - Recommendations of the HR Study as a result of the November 17,2005 Workshop - Cost to the Public: $6.500.00 . February 14,2006 - Conducting Job Task Analysis for each Position in order to Evaluate Work Load & Staffing Requirements - Cost to the Public: $7.747.00 . February 14, 2006 - Conducting Job Task Analysis for Four (4) Additional Positions: Assistant Director & Director of Finance & Operations, Receptionist, Director of Economic Development & Planner - Cost to the Public: $3.800.00 . April 4, 2006 - PBP Article: Discord Imperils Boynton CRA Board . April 13, 2006-PBP Article: Boynton eRA Board Member Quits after Ouster Vote . April 11, 2006 - Job Task Analysis Completed · May 2, 2006 - City Commission demands CRA Board 6-month Continuous Improvement Plan with Recommendations for Improvement: Item 1.) Finalize ILA with the City of Boynton Beach Human Resources Department which will provide CRA employees le2al protection under the state and federal employment laws (i.e. Title VII of the Civil Ri2hts Act of 1964. the CRA of 1991. the FMLA. the A2e Discrimination in Emplovment Acts. etc.) . May 9, 2006 - Approval of Job Task Analysis Work Product & Recommendations - Resulting in HR Staffing Plan & Salary Analysis · May 16,2006 - PBP Article: Boynton Agency, staff vent in Report . August 8, 2006 - CRA Meeting Minutes clarify City versus CRA Roles · January 16,2007 - R07-12 ILA Between the City and CRA for Human Resources Services · May 8, 2007 - CRA Staff requested to diversify the agency recruitment process to include all categories of residents. · July 7, 2007 - SS Article: City Proposed Budget Article -Events to be picked up by CRA · August 9,2007 - CRA FY07-08 Budget Workshop - CRA Board agreed to accept the CRA Police Program and Citywide Special Events without requesting the Executive Director hire additional staff to administer these programs for the agency. The HR Plan and Organizational Chart were included in the board packet. "Ms. Bri2ht explained she needed to hire a Finance Assistant immediately. There was a discussion to wait on the other vacant positions in the or2anization chart until after the Visionin2 process was completed." . July 2008 - CRA Budget Workshop Books sent to Board Members - under the Draft Budget Summary Tab" the Salary Schedule & Related Personnel Expenses Chart was included . August 7, 2008 - City Clerk Minutes - The Executive Director did not state. "the administrative position has been eliminated." . August 7, 2008 - Independent Transcription Service Provider Minutes - Page 6: "Ms. Harris: This line item also includes - we did eliminate one position. Mr. Taylor: Right. Ms. Harris: We didn't eliminate it from our organization chart but terminated the position earlier this year, and that was about - I think the salary cost on that was $35,000; with benefits was over $40,000. So that's out of this budget also." . August 12, 2008 - CRA Board Policy Direction FY08-09 Budget Minutes- City Clerk Minutes"Chair Tavlor reported that he spent a e:reat deal of time studvine: the bude:et and noted that a lot of monev was cut from trainine: and transportation. One emplovee position was eliminated. Chair Tavlor feels the staff is verv Qualifed and thev do a e:reat deal in-house where other CRA's take those proiects outside to private industrv." . August 12, 2008 - Independent Transcription Service Provider Minutes - Page 4: "Mr. Taylor: "Well, to address that, I can - I looked through it and I found that they cut a lot of money out of the training, out of transportation, big money out of that. They did let e:o - one employee was cut." Page 11: Ms. Harris: "We have four outstanding positions." . August 12, 2008 - City Clerk Minutes; Page 7: "Chair Taylor agreed CRA staff would provide the line item detail information to the individuals who wished to have it and he was willing to discuss at the next meeting. Mr. Hay requested an opportunity to meet one-on-one with CRA staff. Vice Chair Rodriguez requested information be provided to him for his review and then he would meet one-one-one with CRA staff. During the next meeting, concerns would be discussed." Commissioner Hay met with CRA staff for three and one-half hours to review the bude:et details. As of December 4. 2008. CRA Board Member Rodrie:uez has not met with the Executive Director or her staff to conduct a one-on-one meetine: to understand the bude:et or its detail historv. . September 2, 2008 - Final Budget Hearing Minutes . Community Redevelopment Plan Verification of ROI for Marketing/Communications & Special Events . Thank you Card to CRA Temporary Administrative Assistant Theresa Utterback for securing a full financial refund Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 5, 2008 VI. Consent Agenda A. Approval of Minutes - CRA Board Meeting October 14, 2008 B. Approval of the Period-Ended October 31, 2008 Financial Report Vice Chair Rodriguez pulled Item VLB for discussion. C. Approval of Funding up to $50,000 from the Homebuyers Assistance Program to Andrae Robinson Motion Mr. Hay moved to approve the Consent Agenda with the exception of Item B. Vice Chair Rodriguez seconded the motion. The motion passed unanimously. VII. Information Only A. eRA Policing Activity Report for the Month of September, 2008 and District Statistics for the Months of September and October Boynton Beach Police Department CRA Police Unit Statistics and Progress Report March 17, 2008 to October 31, 2008 (Info Only) B. Boynton Beach CRA and Trolley Website Updates VIII. Pulled Consent Agenda Items VLB. Approval of the Period-Ended October 31 2008 Financial Report =~=~:~~::_~== poliitjgQ iY'diRued .a.'M'II@!@f; 2 Meeting Minutes Community Redevelopment Agency Board Boynton Beachl Florida November 5, 2008 Vice Chair Rodriguez understood the position had been eli~*~j~ted the position was not filled. No positions were eliminated. The unfilled positions were not funded. Mr. WeWaod understood the positi0n was fitted. until the Family Leave ended and sta.f(r~rn~J9,.WO[k. Mi. Bright iftdieMed the t,:>tJq~t Induded$40,OOO for temporary IaOor aAd' ge1"1ices. vtce Chatr Rod1'~ un(f@1 ~ttY5tf the need for special projects; however, the individual was answering the phone and performing admInistrative dwties and was listed on the eRA web5Mie as lfte AEImm~ Assistant. Mr. W~ iRCii€:at.ed his assumption was the one Administrative Assistant position had been eliminated and the other Administrative A9Si9tBAt W0fi<ecJ for Ms. Bright until the FamHy leave was granted. The temporary assistant was to work until the Family Leave had ended. Vice Cbair ~uez recaHecJ commending Ms. Bright during the budget review for eliminating a position. He was concerned the~ffad prevtOtf9fy been misled. Motion ViCfi,a.tr~z moved to eHminate the Administrative Assistant position and save the ~g. Mayor Taylor indicated there were ~~, ~ tn the ~. that had not been fttted. Vk:e Chair Rodrtguez ~'W,"~S'~~ wee-those filled at tRe time. Ms. Bright ~the '*'" had not ~. She would re'Jfew the w~ aOO have the ~,"ft!!f~: ~~fmS~'i~tt1eOOFa&on of thefamiyLelwe. sneW8Sn0w~_": ...., >~,~r~ived. Compl~ wfth the State was important to get the es pref5f'!lt~,. Ms. Bright r~ ~n from tne Board. Mr. WeilanQ a$ked for a timeline to complete the spQGial ~ect. It was p~that' two I11OI1ths would be suf'tre1ent. StiS!lf't"flmrTrs, Finance 'Director, added the unfilled positions had not be'et't~. in the buQjM. Naver~or Nit\lm)tled:h'JlGIitiGlI!\&:(jN left ~ and net funded. Mr. ::~=-: ':0: ~::-tf1~=r=:t,~~~~n t~ com~ "ihe..~~t: ....He refter8ted he understood the Administrative Assistant pojl(.dn~l~",fM!d. Mayor Taylor poff1tetl out mt>f1ey h8e1. been ~.. and 8f'PrOvedfor temporary assiat1imee. Ms..Mght ~ not ~ Mt b~ and 9he sh004c!lbe __ed to manage the Department. 3 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 5, 2008 Mr. H~y,~fJ.r_ with Ms. Harris that the funds were budgeted. Ms. Harris indicated the > ll1iiifien, cifj.. not appear on the orgetrizattonal charts and was con~dered pI'Ot\!s~Iene....... pcersennef costs. Vir..e. QlW ~s concern was the Board had been misted feI-ing the elim~ of me ~fon dUHngthe budget: cyde end the btf~;'I'ftfAds were specified for use in an emergency, such as the Family Leeve. Mr. W~ .cQijlaoot agvee the Board had been misled, but minutes could be reviewed or verbitiim~ <<JUld be~. He repeated if the monies W~ blJdgeted he WOl.tIa~ ~,I.wcIt,tMnth. tD eom~ ,the. ~'project. Mr. Weiland requested that the ~,ik .&e' AJSeardled 50 there would be OQ confl,lsion. Vice Ch8fr;RMr1guez 5ug~~ the Board reaflintl lfIat the J'Oslt1on be eflrninated. Mr. WeUand wanted to resolve any and aU confusion and accusations. Vice Chair Rodriguez inquired if the eRA Attorney had any knowledge of the files being dlscussed. CRA"Attemey <;herYl)f betieved. they VIere I. ,fltes thettwere dormant ancl kep~ by the previous geard Attorney. Mayor Taylor daiifl~tf1e~ were boxes Of files in the previous AttQrn~y'soffjce thilt were not accessible. Space was made available and the fif~ coufdbe organi:aed for future reference. The organization of the flies diG have to be a~pttShed at the direction of the Executive Director. " Ms. Bright exptatned her responsibifrtres and the rules that govern the Agency dictate the Chair as her S1Jperior. She pointed out Vice Chair Rodriguez ~Jhe only member of the aoard that did not have a stancing meeting wtth eRA staff to discuss his COr1C~tI'1S with continued operational frustrations with her and staff. She would like better com~ between herself and Vice Chair Rodriguez. The prOject with the file!'fiad b&etl fuffy discussed with Chair Taylor. She suggested feQLdar meetings with Vice ehair RocIr.iQl.lez with either herself or Ms. Brooks would give him a better ul_ltl~dttte opetat1ons In the Agency. It was a business decision not to fill the ~'.po~n. Vice Chair Rodrtguez commented It was an Executive Board and his posi.tlon was every dfsCtlSSfOn shoofd be done in a public setting. Discussions should not be heJdbehind closed dO'ots wtth indMffuafs, rather openly and public~. He felt everyone should hear tl1e'!l!ffte~.to matte lnfOrmed decfsfons. Ma,or Taytor contended It was not practical and he had meetings every w~k with the City Manager to go over many things that were not offidal. Not every problem can be solved in two week intervals. Vice Chair Rodriguez reiterated his position that he would not have disttrssions behind closed doors with the Executive Director. 4 Meeting Minutes Community Redevelopment Agency Board Boynton Beach, Florida November 5, 2008 Ms. Ross felt it was her right to have a meeting with the Executive Director or the City Manager. Mr. Hay asserted it was his right to ask questions and get further information when need~ and not necessarily in a public setting. Mr. Weiland opined it was Vice Chair Rodriguez's 10S~ not to be fully informed. Mr. Hay contended emafts serve the same purpose. Vice Chair Rodriguez pointed out emails are sent to everyone and the answers are received by everyone. Ms. Ross indicated it was a small agency with nine employees. The City may have similar situatiQQi in their departments, but the Commi~Q.4l ..~ those departments. Upper management is ~1!0 ~.;".;~' nts as needed. The decision to employ one or two people for special projects should be made by the Executive Director. Chair Taylor explained anything beyond the budgeted items would have to come to the Board for approval. Motion Vice Chair Rodriguez moved to approve Item VLB. Mr. Weiland seconded the motion. The motion passed unanimously. IX. Public Comments No one came forward. Chair Taylor closed the public comments. X. Public Hearing: Old Business: New Business: XI. Old Business: XII. New Business: Old High School (Added to agenda by Wee Chair Rodriguez) Vice Chair Rodriguez advised he had gotten confirmation from Ms. Harris that the Old High School had been funded for $50,000. Insurance had been paid that would be refunded. ) MINUTES OF THE CITY COMMISSION/COMMUNITY REDEVELOPMENT AGENCY JOINT WORKSHOP HELD IN THE LIBRARY PROGRAM ROOM, BOYNTON BEACH, FLORIDA ON WEDNESDAY, NOVEMBER 7,2001 AT 6:30 P.M. Present Citv Commission Community RedeveloDment AQencv Mayor Gerald Broening Vice Mayor Ron Weiland Commissioner Charlie Fisher Commissioner Mike Ferguson Commissioner Mack McCray Larry Finkelstein, Chairman Jeanne Heavilin, Vice Chair Joe Aguila Alexander DeMarco Don Fenton (arrived at 6:50 p.m.) Michelle Hoyland Henderson Tillman Also Present Jim Cherot, City Attorney Kurt Bressner, City Manager Janet Prainito, City Clerk Quintus Greene, Director ot Development/CRA Dan DeCarlo, Neighborhood Specialist Lindsey Payne, Assistant City Attorney I. Call to Order . Mayor Broening called the meeting to order at 6:40 p.m. II. Roll Call The Recording Secretary called the roll and a quorum was declared present. III. Agenda Approval Mr. Tillman moved to approve the agenda. Motion seconded by Mr. DeMarco and unanimously carried. IV. Heart of Boynton Study A. Introduction of Consultants Mr. Greene welcomed everyone to the meeting. The study presented was the outcome of a six-month process. Many of tonight's participants also attended the various community workshops. Meeting Minutes City Commission/Community Redevelopment Workshop Boynton Beach, Florida November 7, 2001 Mr. Dan DeCarlo reported that the City received a grant last year from the State of Florida to perform a study of the Martin Luther King neighborhood area. The plan name was changed to the "Heart of Boynton". Mr. DeCarlo introduced Mr. Bob Gray from the Strategic Planning Group, Inc. and Mr. Joe Gray from JEG Associates, the consultants engaged by the City that performed the study. B, Presentation Mr. Bob Gray presented a Power Point Presentation on the Heart of Boynton, a copy of which is attached to the original minutes. Mr. Gray commended the community for their participation in the workshops. The Plan will now require approval of the CRA and the City Commission. The following is a summary of the presentation > The study area (Heart of Boynton) begins at the C-16 canal, east to the railroad tracks, west to 1-95 and south to NE 3rd Avenue. > The Heart of Boynton is one of five studies that the CRA will be conducting. > Major areas addressed were Cherry Hill, Boynton Terrace, Easy-Mart and other commercial areas. > This area has been losing population. > Household income is significantly below the County level. > Currently there are approximately 1,081 housing units. > The unemployment rate is double the City's and County's rate. > The population is predominately African/American, with Caribbean influence. > With regard to livability, participants in the workshops felt that the following were major issues: (i) law enforcement, (ii) code enforcement, (iii) a medical clinic, (iv) increased community involvement, (v) zoning issues, (vi) a community center, (vii) park improvements, (viii) housing, and (ix) school involvement > The area has two Community Development Corporations (CDC), which is an asset to the area. One COC will be facility oriented and the other will be more housing oriented. ~ There are a total of 234 vacant lots in the study area. ~ Because the lots are small, there is no significant amount of land to do any extensive projects. This will require land assembly. ~ There are approximately 53 residential non-conforming lots. > There are almost 1,200 parcels that are owned by the School District. 2 Meeting Minutes City Commission/Community Redevelopment Workshop Boynton Beach, Florida November 7, 2001 > The City of Boynton Beach owns 45 parcels. > There are 889 parcels owners with 100 people that own more than one parcel. )> Discounting government owned property, there are only three parcels that are larger than one acre. > 739 parcels pre locally owned and 414 are owner-occupied. > 83% of the parcels are valued at less than $50,000. > The Cherry Hill section will be eliminated entirely. >- The Cherry Hill section will become known as Poinciana Heights. >- Boynton Terrace will also be eliminated. > Each neighborhood will be given an entranceway. > Traffic calming is needed, as well as sidewalks. > The west side of Seacrest Avenue would go back to its single-family roots similar to Ridgewood. > The zoning needs to be changed. > Palmetto Park would be extended and linked to Galaxy Park. > Updating the Wilson Center is critical to the plan. Mr. Tillman inquired if building on substandard sized lots would now become prohibited and Mr. Gray said that this would no longer be permitted. > The community urban design features need to be integrated into this neighborhood. ~ The Floribbean architectural design was utilized as the new design for this community. Implementation of the Plan Phase 1 - First 8 months > The master plan needs to be adopted this year. )> The Future Land Use Plan and the zoning map needs to be amended sometime in mid-2002. )> Design Standards need to be approved and this should be done now. )> When the County approves the City taking over the Cherry Hill public housingl residents would be given Section-8 vouchers for relocation. )> Begin a study for the acquisition of the Cherry Hill section. > A cost analysis needs to be done. > Continue the leadership already in place. > Neighborhood Associations need to be formed. > Begin dialogue immediately with HUD to address Boynton Terrace. > Public Works needs to be relocated > Issue an RFP for the design of Wilson Center. > Begin work on Seacrest Boulevard in conjunction with the County. 3 Meeting Minutes City Commission/Community Redevelopment Workshop Boynton Beach, Florida November 7, 2001 ';;> Become involved with the CDC's and PATCH to create public health and daycare facilities. >- Start identifying grants. > Establish a strong code enforcement policy. > Issue an RFP to begin the downtown study. > Develop a relocation strategy to relocate people back into the community. Commissioner Fisher inquired what the price range of the homes would be. Mr. Gray stated that probably would range between $100,000 to $150,000. Phase 2 - 9 to 16 months > Start to issue vouchers in order to relocate people. > Accelerate improved housing. > Continue to form a strong ministerial alliance. >- Complete design work for Palmetto Park and the Wilson Center. > Issue bids for demolition. >- Begin redesigning Seacrest Boulevard. >- Start the Neighborhood Gateway Program. > Expand the current grant program. >- Segin the construction for the improvements to Wilson Center. Ms. Heavilin inquired where people could go with the Section 8 vouchers and was told they could move anywhere they wished. Phase 3 - After 24 months >- Issuance of a bid for the demolition of Boynton Terrace. . Commissioner McCray raised concerns that residents would not be encouraged to stay in the City. He would like to have a plan in place so that people could remain in the City if they so wished. It was pointed out that there are many areas within the City where Section 8 vouchers would be accepted. Ms. Hoyland questioned if there would be enough places within the City for the people that are displaced. Mr. Gray was not certain on this. > Open the new center. }> Open Palmetto Park. > Issue an RFP for the southeast quadrant. Commissioner McCray inquired how much of the CRA funds would go to the Federal Highway Study and to the MLK Study. Commissioner McCray felt that the budget would have to be reviewed to cover the costs of the various projects. 4 Meeting Minutes City Commission/Community Redevelopment Workshop Boynton Beach, Florida November 7, 2001 Mr. Greene pointed out that the CRA has approximately $3 million for projects and felt it was too soon to determine what the costs of the projects would be. Mayor Broening pointed out that the CRA projects should not affect the City's budget. Mr. Tillman felt that the study was an excellent start in meeting the needs of this neighborhood and that the City is moving in the right direction. His philosophy has always been that permitting substandard lots breeds substandard behavior. Commissioner Fisher also pointed out that this is a master plan and that people are not going to be displaced tomorrow. Discussion and Public Audience Mr. Harvey Oyer, 512 N. Seacrest Boulevard stated he attended many of the neighborhood meetings. He has some points that he strongly disagrees with. He would like the City to purchase the property north of City Hall and put in public buildings. This would provide for a good approach into the City. He pointed out that most of the land on MLK Boulevard from Seacrest to the railroad is underutilized and this would be a good place to put in a viable shopping center. He also stated that historic districts should be set up throughout the City and that the City is taking a negative approach to keEiping the property values down. Ms. Blanche Girtman, 912 NW 3rd Street had concerns that people wouldn't be 'fairly compensated for their property and would not be able to purchase a replacement home. She felt that a shopping center placed in the Heart of Boynton area would not draw patrons from other areas of the City. A gentleman in the audience did not think that there would be enough land to build new affordable housing to accommodate all the residents. He would like the City to wait before it adopts the new land use and zoning amendments until it was prepared to address these concerns. Sister Lorraine Ryan, a member of PATCH, stated that a survey of the Heart of Boynton area was taken and it revealed that there is a major concern for affordable housing. She did not feel that the current residents could afford to purchase homes in the $100,000 plus price range. She pointed out that there is a definite need for a health facility in this area and was pleased to see that this was included in the consultant's report. Mr. Brian Edwards, 629 NE ~th Avenue, felt that the City was moving in the right direction. He pointed out that PATCH was introduced into the City approximately one year ago and the Boynton Beach PATCH will now be the seventh in the County. The PATCH committee is moving forward in obtaining its 501 (3)(c) designation. He pointed out that the surveys revealed that there are 5 Meeting Minutes City Commission/Community Redevelopment Workshop Boynton Beach, Florida November 7,2001 many things that the City is lacking, such as transportation, language barriers exist, teenage pregnancies, lack of prenatal care, after-school childcare and childcare in general. He was pleased that tonight's workshop recognized many of these same concerns. Mr. Greene addressed the concerns raised by Ms. Girtman regarding displacement of long-time residents. The Federal Relocation Guidelines provide that if Federal money is used to acquire property that results in relocation, those individuals have to be accommodated in at least, if not better accommodations than they have. Mr. Greene noted that after tonight's meeting there will be speculators going out into the neighborhoods trying to buy up property. Mr. Greene would like to make certain that people are very careful when being approached to sell their property to non-government entities and/or individuals because there would be no relocation benefits whatsoever. It is not the City's intent to displace anyone; however, he acknowledged that it would not be possible to relocate everyone within the neighborhood. People whose property is acquired with federal money will be better off than they are today. Mr. Joe Gray pointed out that the intent of redevelopment is to insure the future of a community. The study pointed out that things need to be improved in the community and if improvements weren't made, the community would die through attrition. Therefore, it is imperative that corrective actions be taken. Affordability is not achieved by building cheap, substandard homes. The City is fortunate to have two CDCs because those organizations will provide support to the people that the government can't support. The City is trying to stop the pattern of people being segregated and living in blighted conditions. Commissioner Fisher inquired if the City would be the developer and was informed it would not. Mr. Greene explained that the City and/or the CRA would be the primary entities responsible for land assembly. Once the land is assembled an RFP would be issued. Mr. Greene pointed out that the City by law is not allowed to sell land for less than fair market value. However, the CRA is, permitted to do this. Mr. Ron Washam urged people to be flexible and to help one another. Commissioner McCray pointed out that it is important that the people in this area be informed on what is happening. Mayor Broening closed the public audience portion of the meeting and explained that no formal action would be taken at this time. The Heart of Boynton Study would be going back to the CRA and the Commission for approval. Ms. Hoyland inquired if they would be given an opportunity to address any items they felt needed to be addressed~ Mayor Broening said that the CRA and Commission would have this opportunity. 6 Meeting Minutes City Commission/Community Redevelopment Workshop Boynton Beach, Florida November 7,2001 RECESS WAS CALLED AT 8:20 P.M. THE MEETING RECONVENED AT 8:30 P.M. V. Administrative Issues A. Review of Mission and Purpose of the CRA Mr. Greene felt that there was a misconception in the community about what the CRA is and what the CRA is supposed to do. The purpose of the CRA is not to develop downtown. . The purpose of the CRA is to deal with the removal of conditions creating slum and blight. This is contained in Section 163.355 of the State Statutes, which Mr. Greene recited. The purpose of including a downtown area in the CRA is to afford the CRA the benefits of the increasing increment as the downtown develops. The CRA area is divided into five diffe"rent areas. The Federal Highway Corridor has already been approved and the Comprehensive Plan is now being revised for this area. Other CRA areas are the Heart of Boynton, the Ocean District, which includes Town Square, the Boynton Beach Boulevard Corridor and lastly, the Industrial Avenue area. Since the CRA expanded in 1999, the increment has increased from $305,000 last year to an estimated $940,000 for the coming year. Mr. Greene pointed out that there would be five area plans for each CRA District. One has been approved, one was presented tonight and the third one is just getting started, which is a State law. B. Current Status Report The independent CRA Board has been in existence a little under one year and a great deal has been accomplished. . Last year the City Commission approved a six-month moratorium on C-4 zoning applications in the Federal Highway Corridor and instructed staff to do a rezoning study, which also resulted in the CRA plan being updated. . A consultant was hired and a Plan update was prepared and approved by the Commission in May 2001. . Staff is in the process of securing DCA approval of an amendment to the City's Comprehensive Plan. State law also requires that the CRA Plan and Comprehensive plan must be in sync. . Staff is processing a zoning change for the Federal Highway Corridor. This will be brought before the CRA at its next meeting on November 13th for approval and before the City Commission on November 20th. . Mr. DeCarlo earlier this year secured a grant from DCA to conduct a community planning study in the MLK area. With DCA approval, the 7 Meeting Minutes City Commission/Community Redevelopment Workshop Boynton Beach, Florida November 7, 2001 boundaries of the study area were adjusted. A consultant was hired which resulted in the plan that was presented tonight. Once the CRA and the Commission approve the plan, it will follow the same process as the Federal Highway Corridor Plan. At their March workshop, the CRA Board identified projects that they wanted to accomplish. The projects were prioritized and adopted in August with the budget. A list of the priorities was presented to the members and the Commissioners. As of today, almost every priority project has been completed or is currently in progress. Mr. Greene reviewed the priorities as listed and a copy is included with the original minutes. Mr. Greene reported that the City acquired former FEC property at 4th Street and SE 1 st Avenue, which will bring a total of 55 parking spaces under City control. Appraisals have been ordered on several properties in the CRA target area and the Commission approved a contract for real estate administration services with the Urban Group, Inc. at last night's meeting. Staff toured the City of Hollywood, Florida to view its very impressive way-finding signage program. The City has received a proposal from them to design a similar signage program for the City of Boynton Beach. Staff is in the process of preparing a recommendation to the City Commission to enter into an Interlocal Agreement with the City of Hollywood, Florida to design Boynton Beach's way- finding signage. Mr. Greene reported that the conceptual design and corresponding model for the Town Square District have been completed. The model is on display in Conference Room C in the West Wing. The Development Department is mandated by City Code to provide services to the CRA. The City and the CRA entered into a Staff Services Contract in order to determine actual staffing costs in the event the Board wished to hire its own dedicated staff. The CRA Board adopted a 2001-2002 budget, which includes $158,000 for personnel. A job description has been prepared and approved for the CRA Director. Section 2-13.20 of the Code needs to be amended before the position can be advertised. City Manager Bressner stated he did not support a change in the Ordinance, but supports a continuing relationship with City staff. This change could be revisited at a future date. It was his personal opinion that this was moving too fast at this time. He acknowledged that there has been some good and positive work done, but urged the Commission and CRA to consider some alternatives to becoming independent of staff. Mr. Tillman felt that it was not necessary at this time to have a full staff for the CRA. He would like the CRA to have its own point man to devote 100% of his 8 Meeting Minutes City Commission/Community Redevelopment Workshop Boynton Beach, Florida November 7, 2001 time to CRA business to take some of the burden off Mr. Greene, who is also the Development Director. Commissioner Fisher felt that the CRA needed to have a person with $ome authority that could focus on the needs of the CRA. Mayor Broening suggested that an administrator-type position might be more in line. City Manager Bressner suggested that if this route were taken that the position be outsourced. He pointed out that if a consultant were hired, the Ordinance would still have to be amended. Mayor Broening asked Chairman Finkelstein specifically what the CRA was looking for with regard to .staffing needs. Chairman Finkelstein stated that they were also in need of someone that could provide secretarial services and felt it was not necessary at this time to hire a full-time staff. However, he would like to have a person dedicated to the CRA to handle functions that staff is too busy to provide. Vice Chair Heavilin felt .that the Agency was ready for a full-time Director. Vice Mayor Weiland and Commissioner Ferguson said it was time for the CRA to move on. Mr. Fenton pointed out that the CRA Board voted 7-0 to hire a full-time Director. Chairman Finkelstein pointed out that it was a vote to hire staff, not only a Director. Discussion ensued on the direction that the CRA should move in hiring staff. There was agreement among everyone that the CRA was in need of some type of fulltime assistance. Vice Chair Heavilin felt that something needed to be done now. City Manager Bressner said he could place something on the agenda for the next Commission meeting.. Commissioner Fisher requested that more tha.n one option be considered. City Manager Bressner pointed out that the CRA direction was for a Director and not an administrator and the Commission should consider the original request. If the CRA wished to modify their original request, they would have to bring something new back to the Commission. City Manager Bressner said he was only giving his opinion and if the Commission wanted to move fOlWard they should. Commissioner Fisher suggested that the money in the City's budget earmarked for CRA projects should be placed in the CRA budget. Vice Chair Heavilin asked about the timing. City Manager Bressn~r stated that the first reading of the Ordinance could be December 4th and the second reading would be December 18th. If the Ordinance passed, whatever is approved could take effect by the first of the year. 9 Meeting Minutes City Commission/Community Redevelopment Workshop Boynton Beach, Florida VI. Public Audience None VII. Other November 7, 2001 Vice Chair Heavilin inquired about the survey that was performed for attendance for Board members. She asked if an attendance policy for the CRA Board had also been addressed. City Manager Bressner stated that all Boards were included in the survey. However, if a Board meets more than once a month, the attendance requirements change. Mr. Greene stated that the agenda for the regular CRA meeting on November 13th will contain a copy of the Ordinance and an excerpt of the State statutes that deals with removal of CRA Board members. VIII. Adjour~ment There being no further business, the meeting properly adjourned at 9:15 p.m, ATTEST: (jftfe~1:, tn. ~ Ci Clerk !/' J~~iK,' )k - J tL/;{..:li~_. Recording Secretary (three tapes) (November 8,2001) C'7;/lrc~ _ ~ye>.s~7,/ // e'" "'-"~') /.~ ./://" J / /j' '7 177/ ," :~! "t\:""" /~",/z{---"k";: " ~or.. ... . l- ~r'V Commissioner' ! 10 Meeting Minutes Regular City Commission Bovnton Beach. Florida November 20, 2001 B. Discussion Regarding Establishment of Arts Commission (December 4, 2001) C. Discussion Regarding Nonconforming (unpermitted) Canopies (December 4, 2001) D. Public Hearing - 2002/03 Fire Assessment - Proposal to Include in Uniform Collection System (via County tax bills) in lieu of Local Collection for 2002-03 (December 4, 2001) E. Discussion of Possible Corridor Study for Congress Avenue (December 4, 2001) F. City Services Survey (December 4, 2001) G. Redevelopment Code Issues for Non-conforming Lots and Buildings in Commercial Areas (December 4, 2001) H. Report on Proposed Economic Incentives - Ocean Avenue and Martin Luther King, Jr. Boulevard (December 4, 2001) 1. Traffic Calming and Traffic Control Final Report (December 18, 2001) J. Modification to City Pay Plan - Salary Ranges (December 18, 2001) K. Modifications to City Purchase and Contract Award Policies (December 18, 2001) L. Stormwater Projects Report (January 15, 2002) M. FRA Whistle Ban - Report (March 2002) - Delayed due to Federal Railway Administration Delay in Rulemaking X. DEVELOPMENT PLANS: None XI. NEW BUSINESS: A. Discussion of Proposed Ordinance Changes for CRA Staffing Options City Manager Bressner stc:ted that there are three possible options. The first option would be to remain status quo with no ordinance change. The second option would be to follow the CRA's recommendation to allow them to hire their own director and staff and the third option would be, perhaps, to have the CRA hire an administrator but still provide City staff as support. City Manager Bressner recommended waiting for six months. 16 F~eeting Minutes Regular City Commission Bovnton Beach. Florida November 20. 2001 After some discussion, it was the consensus of the Commission to direct staff to draft an ordinance to allow the CRA to hire an outside director and staff. XII. LEGAL: A. Ordinances - 2nd Reading - PUBLIC HEARING 1. Proposed Ordinance No. 01-55 Re: Amending Chapter 15, Article 1. By adding a new section 15-10 of the Code of Ordinances; prohibiting sound disturbances in residential zoning districts; providing for definitions, methods of enforcement, and penalties City Attorney Cheraf read proposed Ordinance No. 01-55 by title only. Public Hearing , Bob Ensler, 26 Woods Lane, thought this was a good ordinance but he suggested that it would be better not to have a distance requirement. City Attorney Cheraf stated that, legally, a distance requirement was needed. He said that there is discretion in the provision of any law. The annoyance could be ended without a citation being issued. When Mayor Braening asked Police Chief Marshall Gage what would be a good distance requirement, he answered 25 feet. Motion Commissioner Ferguson moved to approve proposed Ordinance No. 01-55. Vice Mayor Weiland seconded the motion. City Clerk Prainito called the roll and the motion carried unanimously. 2. Proposed Ordinance No. 01-56 Re: Amendment to Fire Assessment Enabling Ordinance to add a Sunset Clause City Attorney Cherof read proposed Ordinance No. 01-56 by title only. Motion Commissioner Fisher moved to approve proposed Ordinance No. 01-56. Motion was seconded by Commissioner McCray. City Clerk Prainito called the roll and the motion carried 3 to 2 with Vice Mayor Weiland and Commissioner Ferguson dissenting. 3. Proposad Ordinance No. 01-57 Re: Amending Chapter 2, Zoning, Section 8.A.1.d.(9) to allow gymnastic centers as permitted uses in the M-1 zoning district City Attorney Cheraf read proposed Ordinance No. 01-57 by title only. 17 MINUTES OF THE SPECIAL MEETING OF THE COMMUNITY REDEVELOPMENT AGENCY HELD AT THE BOYNTON BEACH LIBRARY, BOYNTON BEACH, FLORIDA ON TUESDAY, MAY 24, 2005 AT 5:30 P.M. Present: Jeanne Heavilin, Chair Henderson Tillman, Vice Chair James Barretta Alexander DeMarco Doug Hutchinson, Director Absent: Don Fenton Marie Horenburger Steve Myott I. Call to Order Chairperson Heavilin called the Special Meeting of the Community Redevelopment Agency to order at 5:42 p.m. The Recording Secretary called the roll and declared a quorum was present. II. Approval of the Agenda Motion Vice Chair Tillman moved to approve the agenda. Motion seconded by Mr. Barretta and unanimously carried. III. New Business A. Consideration of the Assistant Director's Contract Mr. Hutchinson reported that there is a candidate for the Assistant Director position. The hire of the Assistant Director must be approved and ratified by the Board. There was a good selection of candidates that applied for the position and an offer has been extended to Ms. Lisa Bright as evidenced by the contract presented to the Board for approval. The compensation being offered to Ms. Bright for the Assistant Director position is at mid-point ($65,500). Mr. Hutchinson noted Ms. Bright's contract was adapted from his contract; therefore, there would be no departure from his contract. Mr. Hutchinson pointed out Ms. Bright was a top-notch candidate and her references were excellent. Mr. Hutchinson introduced Ms. Bright and invited the Board to provide comments and ask questions. Meeting Minutes Community Redevelopment Agency Special Meeting Boynton Beach, Florida May 24, 2005 Vice Chair Tillman inquired if Legal had an opportunity to review the contract. Mr Hutchinson explained Legal prepared the draft shell that had been used for a previous candidate. The name of the previous candidate was deleted and Ms. Bright's name was inserted. Also the other provisions that had been added to accommodate the previous candidate were deleted. Vice Chair Tillman asked Ms. Bright why she wanted to come to the Boynton Beach CRA. Ms. Bright responded that her current employer does not have an Assistant Director position and she feels that she has most of the skills required for the position. Vice Chair Tillman also asked Ms. Bright what she considered were her primary strengths, and she responded it was her ability to be a team player and develop long- term relationships. As far as weaknesses, Ms. Bright stated she was very direct. which she explained. Vice Chair Tillman asked Ms. Bright what she could bring to the CRA that would make it better. Ms. Bright presented her background in various areas. Mr. Hutchinson had informed her that her role would be more in operations and the day-to-day management of the CRA. She also has experience with redevelopment, particularly historic preservation and grant funding. Vice Chair Tillman noted the eRA is in need of a well-defined human resource element within its organization, and Ms. Bright thought that one of the reasons she was selected was due to her background in human resources. In her current position with the Delray Beach CRA she is in charge of human resources. She has spent eight years reorganizing Fortune 500 companies and has a great deal of experience in this area. Mr. DeMarco inquired where Ms. Bright resided and she noted she lived on Swinton Avenue in Delray Beach and was born and raised in Florida. Eventually, Ms. Bright would like to move into the City. Chairperson Heavilin requested to review the contract and questioned why the contract would be effective one year from October. Mr. Hutchinson explained that his contract and Ms. Bright's contract require that in October they would be evaluated, which means a contract cannot end before an evaluation. He pointed out that the contract would start on October 31 st that would allow time for the contracts to be extended at the October meeting. This same provision is in his contract as well, so that both contracts would be the same. Chairperson Heavilin pointed out that Ms. Bright would be on staff for approximately 14 to 15 months before she is reviewed. Mr. Hutchinson responded that Ms. Bright would still be reviewed in October, but he did not think it was fair to hire her for only four months under the contract. Only the contract would be up for renewal next year. Mr. Hutchinson would like to have the contracts changed to three-year contracts, and he will be doing some research to determine the norm for these types of contract. He felt it "' Meeting Minutes Community Redevelopment Agency Special Meeting Boynton Beach, Florida May 24, 2005 was important that professionals be kept onboard for more than one year. Ms. Bright was in agreement with this arrangement. On Page 5, in Section 7.3, the word "sign" should be changed to "signed" in the second line. Chairperson Heavilin inquired if Ms. Bright was fired for doing something horrific, would she receive severance as provided in Section 7.3.1. Mr. Hutchinson responded that Section 7.3.1. applied to unilateral termination, mutual agreement or resignation. There would be no severance paid for maleficence. Chairperson Heavilin did not see this stated anywhere in the agreement. Vice Chair Tillman noted this language was included in Article 6, but he did not see it anywhere else in the contract. He would like to have this language included in Article 7 (Termination of Contract) as well. Mr. Hutchinson stated the Board could approve the contract, subject to this revision. Mr. Hutchinson said it was included in his contract and he will speak with Legal to have the appropriate language added to the contract. Chairperson Heavilin had a question regarding Ms. Bright's duties and functions. She noted there was no provision that Ms. Bright would act as Executive Director in the absence of the Executive Director. Mr. Hutchinson stated only the Board could give Ms. Bright authority to act as Executive Director in his absence. He pointed out that her duties include supervising the agency staff when applicable. Mr. DeMarco asked Ms. Bright how this new position differed from her current position with the Delray Beach CRA. It appeared to Mr. DeMarco that her duties with the Boynton Beach CRA were different from the ones in Delray Beach. Ms. Bright explained what her current duties were with the Delray Beach CRA, her primary role being the right hand to the Executive Director on all executive matters. She is also Secretary to the Board and keeps staff advised of the meetings, etc. She is the Human Resource Director for the office and is in charge of all service contracts. She is also responsible for the properties that the CRA owns. She does public relations on behalf of the Agency and they are in the process of developing a media plan to address issues in their community. Ms. Bright supervises the office staff and handles the general duties connected with that function. She pointed out that the Assistant Director position is a promotional opportunity for her. Mr. DeMarco asked Mr. Hutchinson what Ms. Bright's duties would be with the Boynton Beach CRA. Mr. Hutchinson explained that the Delray Beach CRA does not have the same program as Boynton Beach. He feels that Ms. Bright's management skills will be beneficial to the agency. He pointed out that Ms. Bright's focus would be on operations, which requires a great deal of work and she will be taking on a big management role compared to Delray Beach. 3 Meeting Minutes Community Redevelopment Agency Special Meeting Boynton Beach, Florida May 24, 2005 Mr. DeMarco felt it was important Ms. Bright be aware of what she would be doing for the Boynton Beach CRA. Mr. Hutchinson explained that he went over this thoroughly with Ms. Bright during her second interview. Vice Chair Tillman noted the diverse programs that the CRA is involved in and asked Ms. Bright about her skills in dealing with the public. Ms. Bright explained she deals currently with business development grants, affordable housing units and the public on a daily basis. She stated in her resume that she has the ability to communicate from the basement to the boardroom. She pointed out the diversity that exists in Delray Beach and noted she has a sensitivity to people's needs. Ms. Bright has a Master's Degree in Clinical Psychology. There was a consensus among the Board that Ms. Bright was the right candidate with all the necessary skills that the CRA is in need of. Vice Chair Tillman pointed out it was important that Ms. Bright was aware of the growth taking place in the CRA, while maintaining the focus of the CRA mission. He felt that Ms. Bright was well aware of these issues and would be able to carry out the mission statement. Mr. DeMarco inquired if the Delray Beach CRA was aware that Ms. Bright was seeking this position and she responded they were aware of this. Mr. Hutchinson reported that Ms. Bright would begin her new position June 20th Motion Vice Mayor Tillman moved to proceed with the consideration to hire Lisa Bright as Assistant Director with the changes necessary in the contract regarding termination as reviewed by Legal staff and with a starting date of June 20, 2005. Motion seconded by Mr. DeMarco. IV. Adjournment There being no further business, the meeting properly adjourned at 6:18 p.m. Respectfully submitted, ~ fI. H~ Barbara M. Madden Recording Secretary (May 27,2005) 4 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida December is, 200S has been set for trial in the 4th quarter of 2006. The suit should be settled and there is no reason to believe it will impede the project. Board Attorney Spillias announced he was aware the suit is for monetary relief but it doesn't mean that between now and the time of trial, an amendment to the pleading that would bring other causes of action in wouldn't occur. He explained, however, if there were anything that affected the ability to develop or utilize the property, they would know about it. Attorney Spillias further added they produced documentation in response to a subpoena having to do with the Ocean One project and the CRA provided their documentation. The discovery is ongoing. Mr. Elam indicated they are unable to gift the 400 public parking spaces to the City, so they need to work within the Direct Incentive Program. They will work with staff to develop a proposal to help this come about. This could be the only opportunity to address parking issues. Mr. Elam clarified staff asked the 400 parking spaces be included. The estimated value of the 400 parking spaces would be in the $8M to $12M. Mr. Barretta noted the Board will commence visioning and commissioning some consultants for retail along Ocean Avenue on December 21st. He suggested Mr. Elam be a part of those discussions so everyone will be on the same page going forward. It was discussed a study is only as good as the questions asked and the results are not etched in stone. There were no other questions or comments on this issue. C. Recommendations for Implementation of the HR Study as a result of the November 17,2005 Workshop ~oS\-- 4 (,I~ ,Db Ms. Bright stated there was a workshop on November 1 ih, 2006 with Florida Employer Solutions to conduct a written revision of CRA job descriptions, an organizational chart, and a pay and classification study. The recommendation of the contractor was to break the organization down into departments. Based on the organizational chart they follow it was noted that several departments lagged the market in pay. Ms. Bright advised the Board in the 2005-2006 budget, $72K was budgeted as a line item to rectify the pay disparities under the former Director. The spreadsheet developed indicates what was existing on the books as it went into the budget approved in September and made recommended increases based on position, not incumbent. The actual net change is $92,506 dependent upon the date the Board selects and whether they go retroactively. Ms. Bright stated the only change that has been made is the administrative position is now part time and not paying benefits. They would like to upgrade the receptionist position to take on more of the administrative office duties and responsibilities. 7 Meeting Minutes Community Redevelopment Agency ,Boynton Beach, Florida__________.. ______D~cember 15, 2005 " There was some discussion that the proposed increases had a range of salaries. The two positions that were fairly behind were the finance director and planning director. With those two positions upgraded, everything else was structured to reflect the rankings and was at mid-point range. Ms. Bright requested clarification on what end of the range should be used and explained she based her ranges on the 50% mark. There was also discussion on the option whether increases could be in increments which was also an option. Ms. Bright was looking for a range of salaries for anyone on the books and their administrative policy requires this be addressed. Ms. Bright clarified the marketing and events position, and marketing and communications are two separate positions. The CRA is looking to create a joint partnership with the City of Delray Beach, the CRA, and the Chamber of Commerce and is looking to hire one events person that would be shared. Then if each individual organization wants their own event, the marketing and communications person would handle that event. The Finance Director was previously called Comptroller. Ms. Bright noted Mr. Reardon handles a lot of operations issues. The Bookkeeper is now called Finance Assistant. Three positions have been approved, one is the Planner, the Economic Development Director position is the same as the Small Business Development Director and an Assistant Director. There was consensus to put the Assistant Director position on the January agenda. Motion A motion was made by Ms. Horenburger, seconded by Mr. Tillman to approve the proposed salary and title changes. There was discussion on what effective date to use and whether or not to make the salary and title changes effective January 151 Ms. Horenburger amended her motion to included the effective date of January 1, 2006, Mr. Tillman amended his second. A vote was taken and the motion unanimously carried. Ms. Bright explained there is $72K set aside by the former Director for the payments to be retroactive. Mr. Reardon, Finance Director addressed the Board and verified there are funds to cover this. Chairman Heavilin requested confirmation that the intent of the previous Director was to upgrade the positions effective September 15. Mr. Reardon confirmed that it was the intent. There was discussion on the expectation that was given to Ms. Bright, Mr. Reardon and Ms. Margie Adelsperger by the former CRA Director that the salary issue would be rectified. Motion A motion was made by Mr. Fenton to make the salary increases effective to October 1. Motion seconded by Mr. Barretta. There was discussion and consensus that the motion includes salary and title changes retroactive to October 1. A vote was taken. No nay votes. Motion carried. K Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida December 15, 2005 Ms. Bright reviewed they are creating a position of Economic Development Director and this is the position most needed at this time. Motion A motion was made by Mr. Fenton, seconded by Mr. Barretta to create a position of Econom.ic Development Director at the salary proposed. A vote was taken. No nay votes. Motion carried. C. Consideration of Purchase Agreement between CRA and Victor Scarpulla for property located in HOB Phase I Ms. Brooks introduced the item and stated the owners of this property came forward two months ago indicating a desire to sell. She explained the owners were shopping offers from other developers, but they did approach the CRA again recently confirming they wanted to sell. The unit is a duplex unit and the price is $330,000. The CRA will pay the closing costs and attorneys fees which is customary for the Agency to do in these types of proceedings. Ms. Brooks recommended approval of this item and clarified this action will pull the property out of the eminent domain proceedings, and move the Heart of Boynton project along faster. Ms. Brooks explained she had received data on this issue and appraisals made about a year and a half ago. It was noted that based on the Bob Katz house, they paid $250,000. The Katz home needed significant repairs. This home is in better condition. Mr. Fenton stated however, this is a catch 22 and we are driving the prices up. Board Attorney Spillias indicated they prepared the document . The agreements are reviewed by legal counsel and signed off on Ms Horenburger would like to see all sign offs on one page. Motion A motion was made by Mr. Barretta, seconded by Mr. Fenton to approve the request. A vote was taken and the motion unanimously carried. D. Consideration of Purchase Agreement between CRA and Cedrick Edwards for property located in HOB Phase I Ms. Brooks reviewed the request and added this item is similar to the previous item. Motion A motion was made by Mr. Barretta, seconded by Mr. Tillman to approve the request as presented. A vote was taken. No nay votes. Motion carried 6-0. 9 ~~eeting Minutes Community Redevelopment Agency Boynton Beach, Florida February 14, 2006 The motion passed 6-0. (Mr. DeMarco was back on the dais.) VII. Pulled Consent Agenda Items IV-G Acceptance of the Minutes from the CRA Board Meeting - January 10, 2006 Attorney Spillias indicated on page 15 of the subject minutes, first full paragraph, second sentence, the words would be should be inserted in front of determined and the word determined followed by later, with the rest of the sentence proceeding as stated. He wanted it to be clear the quick take process did not have the taking and the amount determined at the same time. He was saying that in the quick take method, you get the property and the amount is determined at a later time. Motion Mr. Barretta moved to approve the subject minutes as amended. Mr. Myott seconded the motion that passed 6-0. IV-I Consideration of a Contract with L.J. Craig & Associates to provide Job Task Analysis and Establish Full Time Employee (FTE) Staffing Requirements Chair Heavilin wanted assurance that setting of goals and accountability for the different positions would be part of the scope of work. Ms. Bright responded several Board members had expressed interest in having work plans and management by objectives. L. J. Craig & Associates would be analyzing the CRA job descriptions, establishing accountability and determining individual workloads. Chair Heavilin felt that prior to this, there had been very little goal setting or accountability and Ms. Bright agreed. Motion Mr. Norem moved to approve a Contract with L.J. Craig & Associates to provide Job Task Analysis and Establish FTE Staffing Requirements. Mr. Myott seconded the motion that passed 6-0. C~-~1147. 00 -~~,XO(). 'C) 0 IV-K Consideration of a General Fund Budget Amendment for the CRA 2005-2006 Approved Budget (Resolution 05-14) Mr. Myott asked Mr. Reardon to comment on this item. Robert Reardon, CRA Finance Director, explained the item related to amendments to the 2005- 2006 Budget. Mr. Myott asked about losing the contingency in Exhibit A. Mr. Reardon indicated he had found the money in the bond principal payment "guesstimate, and put it into the contingency account when the budget transitioned from a narrative one to account-based budgeting. In the future, he would be in charge of budget preparation and would work with the Board. If the Board chose to have a contingency account for its own purposes, he would only suggest changes to the contingency account based on the Board's recommendation. In every other account, he would be able to move money from department to department on his own. He would be coming 16 From, 05/22/~-16 09:43 tl283 P 004/018 Work Plan for Conducting AJob Task Analysis for each Po.ition, In Order to Evaluate Work Load and Staffing Requi......enta for the Community Redsvelopment Ag.ncy of Boynton B..ch I. Jail Task Analy." Preoaration A. Review any previous job analysis reports. organizational information (e.g., annual reports, monthly reports etc.) for all positions jn agency. B. Review current job descriptions. C. Compile preliminary list of job tasks, knowledge, skill, ability and other personal characteristics (KSAOs) data for each position from the Agency and other available sources. D. Prepare a draft questionnaire that will be used in each one-on-one interviews with each staff person. e, Finalize all draft Job Task Analysis Questionnaires in preparation for one- on-one meetings with eaoh staff pel'$Qn. 1. Each JT A will include Time Spent, Number of Hours to Complete each Tas"k, Extent Upon Entry. Criticality/Consequence of Error and KSA sections. 2. Each JTA will be finalized after meetings with staff. Sub..Total: $2,836.00 II. Job Task Analy__,. Qu..tlonna're Admlnl.tl'8tlo~ and Data An,rvala A. Meet wi1h eaoh staff person (i.e" five staff) and complete questionnaire with them. e. Tabulate data from all questionnaires for all positions. C. Revise Job descriptions; I.e., add additional tasks, minimum qualifications etc. D. Write job descriptions for planned positions and make recommendations for additional positions needed based on workload indicators. E. "Prepare report which will include but not be limited to the following data analyses for each position: 1. Break out and definitions of major duty areas 2. Ratings of Importance on Time Spent on Major Duty Areas 3. Ranking In Order of Mean Time Spent 4. Estimated number of hours spent to perform each task or project 5. Ranking (;)f importance of tasks 3 From: 05/221"~q6 09:43 #293 P.005/01a 6. Separate listing and detailed description of all knowledge, skills, abilit,ies and other Qharacteristics (KSAOs) most important for success in each position 7. Job Analysis Linkage data; Le, linkage of each duty area with each ability area 8. Physical requirements of each Job for ADA compliance F. Meet with Executive Oirector to review and revise all material. G. Finalize Job Task Analysis Report (i.e., each staff person's JT A report and written surnnwry report with recommendations). H. Submit final documents in hard copy and on disk or CD. Sub-Total: '~,'11.00 FINAL TOTAL: $7.7.7.00 4 From: 051221 ~fJ6 09:45 #283 P 0171018 Mar- 16 06 ll: 1"1-.a frank lUillis 561.':381--5077 Additional Work For Conducting A Job Taak Analysis for FQur Additional Positions. In Order to Evaluate WorkL.oad and Stamng Requirements for the Community Redevelopment Agency of Boynton Beach = iff I" .11 !Ii ~i ~\\;~~~~'1s~m~f,m~if;~I'11 1 II.';" OM R "':.;:iijil ....... ::r= li!liJi=t.i... . II ~,;.a1.~.i',~iidlli;!:iS"..~u~"'r'=7:~.c:e.!!:.!:I~t!IIII1:! II. Job Task Analyses Questionnaire Administration and Data Analvsis A. Meet with each staff person (I.e., four additional staff; Le., Robert Reardon, Interim Assistant Director/Director of Finance/Operations Supervisor, Phyllis Zitcer, Receptionist, Rosalind Murray, Director of Economic Oevelopment, and Vince Johnson, Planner) and complete the questionnaire with them. B. Tabulate data from all questionnaires for these additional positions. C. Write new job descriptions D. Write job descriptions for these positions and make recommendations for additional positions needed (based on workload indicators. E. Prepare report which will include but not be limited to the following data analyses for each position: 1. Break out and definitions of major duty areas 2. Ratings of rmportance on Time Spent on Major Duty Areas 3. Ranking in Order of Mean Time Spent 4. E$timated number of hours spent to perform each task or project 5. Ranking of importance of1asks 6. Separate listing and detailed description of all knowledge, skills. abilities and other characteristics (KSAOs) most important for success in each position 7. Job Analysis Linkage data; I.e. linkage of each duty area with sacn ability area e. Physical requirements of each job for ADA compliance F. Meet with Executive Director to ~view and revise all material. G. Flnalize Job Task Analysis Report (Le.. each staff person's JTA report and written summary report with recommendations). H. Submit final documents in hard copy and on disk or CD. ADDITIONAL COST: $3,800.00 3 Discord imperils Boynton eRA board By Will Vash Palm Beach Post Staff Writer Tuesday, April 04, 2006 BOYNTON BEACH - A memo by a Community Redevelopment Agency board member alleging abuses by her colleagues, including "intimidation" of CRA staffers and conflicts of interest of other board members, threatens to unglue an agency charged with managing unprecedented growth in the city's core. CRA board member Marie Horenburger repeatedly questioned the role of one unnamed CRA member in her memo, complaining of his "unacceptable behavior" with staff members, a possible conflict on a project involving the agency and advocating positions that would directly help his business. She also was critical of the roles of other board members. "If any board member is relying on board membership to help them make a major portion of their living, that board member needs to resign so that they can do business with the agency and developers in the CRA area," Horenburger wrote in the March 21 memo. "Otherwise that person's actions will only serve to taint the city, the agency's work and even his or her own work in the long run." Architect and CRA member James Barretta, believing that many of Horenburger's accusations were directed at him, responded with a five-page memo rebutting the allegations. "Ms. Horenburger is simply taking little bits and pieces of information, and drawing the wrong conclusions or she is gunning for me, as she was gunning for our former executive director," Barretta wrote on March 27. "I will choose to believe that she is just drawing the wrong conclusions from being partially informed." Mayor Jerry Taylor said Monday the flurry of accusations concerned him and if the CRA can't get things in order soon, he would consider the only option open to the city commission - dissolving the CRA board. "Right now I don't know what's fact and what's fiction," Taylor said. "It sounds like the board members are in disarray." Horenburger wrote that one member "went ballistic with staff when he learned that he could not be hired on a self-assembly project because the CRA owns property that will be part of the proj ect. " In his response, Barretta wrote he had discussed the possibility of designing a project with a member of a group of five property owners assembling their own lots for redevelopment in the Heart of Boynton area, but had not gone further. He said he had discussed the idea with the CRA attorney and CRA Executive Director Lisa Bright. "I have never formally been asked to provide services and have not lifted a pencil or paper. I withdraw my name from consideration for this project to avoid any question of conflict," Barretta wrote. "The notion that I ever went ballistic or was told to resign is a complete fabrication. " Horenburger also pointed to a complaint letter tiled by a eRA staff member. The letter, which was given to Bright, said the staff member's working relationship with Barretta "created a hostile working environment." "Due to the stress caused to me by Board Member Barretta, 1 am requesting that Mr. Barretta direct all of his requests... to you," staff member Vivian Brooks wrote. Her letter also alleged that Barretta fired a former CRA staff member from his business as retribution. Barretta later rehired that employee. Barretta, who could not be reached for comment Monday, said in his memo that he and the staff member "had addressed our issue due to my initiative ,. Although Barretta responded to several of Horenburger's allegations, others were directed at different board members. "Other recent questionable things are that a third member insisted he be paid by the eRA for a project he claims he worked on with the former administrator's knowledge, a fourth member neglected to publicly declare a conflict of interest on an item presented to the board that his firm worked on, and a fifth member applied for a job with the agency while still on the board putting the new director in an awkward position," according to Horenburger's memo. Chairwoman Jeanne Heavilin, who applied for the recently filled CRA's director of economic development position, said she didn't want to comment about the memos. But eRA board member Steve Myott said that the eRA attorney was drawing up much- needed rules that would help protect staff from intimidation and create a recourse fm' unethical behavior. "It's just like raising kids," Myott said. "If you don't have means to discipline you have no way to control behavior." Bright said such rules will be discussed at the agency's regular meeting April 11. "We just didn't have any policy in place," Bright said. "I think this shows that the board cares and is committed and trying to change." The CRA board, buoyed by multimillion dollar bond issues for an affordable housing program and land acquisition in the Heart of Boynton, must also deal with the development of the downtown core, the restoration of the city's marina, a possible sea creatures museum, the future of the 1927 high school and increasing interest in the area by developers. "I think it's a very critical time," Taylor said. "We're talking about a lot of taxpayer money here." In her memo, Horenburger said the problems she uncovered weren't entirely the fault of board members. "The problems seem to have roots in the past administration that fostered a culture of confusion and blurred the line between ethical and unethical behavior," Horenburger wrote. "The atmosphere fostered by the former director still pervades the organization," Former CRA Director Doug Hutchinson, who is now a private development consultant in the area, said he was getting tired of being blamed by Horenburger. "I wish I was even half as good a crook as she thinks I am," Hutchinson said. "She's always after a conspiracy. It's all half-truths." Myott, who has been critical of Horenburger for her alleged behind-the-scene role in Hutchinson's abrupt resignation last year, said new rules would prohibit "lone rangers" intent on following various interests involving the CRA. He said CRA meetings are an appropriate time to VOIce concerns. "This situation has gotten where we beat each other up in memo form," Myott said. "Everything needs to be honestly presented." Horenburger said Monday night she stood by her memo. "There is no conspiracy here," Horenburger said. "These guys are just playing fast and loose with the truth. " Meanwhile, city commissioners are watching from the wings. "They have to be very careful not to cross that line," Taylor said. "They're basically an independent board. Our only real option is to abolish it." Boynton eRA board member quits after ouster vote By Will Vash Palm Beach Post SlalfWriter Thursday, April 13, 2006 BOYNTON BEACH - Community Redevelopment Agency board member James Barretta resigned Wednesday, one day after his colleagues recommended his ouster following allegations of improper behavior with agency staff and conflicts of interest. Barretta, a local architect who couldn't be reached for comment, faxed his one-sentence resignation letter to CRA Chairman Henderson Tillman. "We're glad that Mr. Barretta had an opportunity to serve his city." Tillman said. 'We wish him well." Barretta was absent Tuesday night when the CRA board voted 6-0 to recommend that city commissioners remove him if he violated any city policies concerning "inefficiency, malfeasance and misfeasance." The allegations stem from a March 21 memo from CRA board member Marie Horenburger. Horenburger repeatedly questioned the role of one unnamed CRA member in her memo, complaining of his "unacceptable behavior" with staff members, a possible conflict on a project involving the agency and advocating positions that would help his business directly. Barretta, believing that many of Horenburger's accusations were directed at him, responded with a five-page memo rebutting the allegations. He wrote that he discussed the possibility of designing a project with a member of a group of property owners assembling their own lots for redevelopment in the Heart of Boynton area, but had not gone further. He said he had discussed the idea with the CRA attorney and CRA Executive Director Lisa Bright. "I have never formally been asked to provide services and have not lifted a pencil or paper," Barretta wrote. Barretta was also the subject of a "hostile" work environment complaint by CRA staff. "Due to the stress caused to me by Board Member Barretta, I am requesting that Mr. Barretta direct all of his requests to you," Planning Director Vivian Brooks wrote to Bright. Barretta said he and Brooks had worked out their differences, but CRA members agreed Tuesday to hire a human resources lawyer to review the complaint. Besides recommending Barretta's removal, which only the city commission can do, the CRA panel adopted temporary ethics and work policies Tuesday while CRA attorney Ken Spillias meets with the city's legal team to draft specific rules regarding CRA behavior. Commissioner Muir C. "Mike" Ferguson said Wednesday the CRA board hasn't answered all the allegations raised in Horenburger's memo, including questionable behavior by several of her unnamed colleagues. "I think we have to take a deeper look into this," Ferguson said. "There are lots of little worms floating around in this can." But Vice Mayor Carl McKoy, who attended the CRA meeting, said he approved of the steps the board took to prevent future problems. >'It sounds to me like they have some tangible plans in place," McKoy said. 'In my opinion, they ilave done an outstanding job" City Commissioner Mack McCray, who attended the same meeting. had a different reaction "They still have issues," McCray said of the eRA boarri "I still think we need to dissolve the board and start over," Meeting Minutes Community Redevelopment Agency Boynton Beach, FL April 11, 2006 Motion Mr. Myott moved to approve Item O. Ms. Heavilin seconded the motion that unanimously carried. VIII. Old Business A. Consideration of Staff Job Task Analysis - Linsey Willis, LJ Craig & Associates Dr. Linsey Willis was present and indicated she conducted over 18 hours of interviews spending time with each employee and developing job descriptions for the agency. She included a table of data and a report giving recommendations concerning staffing changes, and financial considerations. Ms. Bright indicated the comprehensive document is in the CRA office and is voluminous. It is available for inspection or copying. Action on this item will take place next month. Ms. Bright will send out a condensed memo for the board's review. B. Updated of Old High School Charrettes and Consideration of RFP Solicitation Corey O'Gorman, CRA consultant provided an update on this item and indicated he conducted Open House Sessions. Those who attended the sessions supported renovation, reuse, and adaptive reuse of the building and preferred uses whether public or private, that gave public access to and use of the building. The 52 people who attended the Open House Sessions agreed that well maintained grounds could be used for public entertainment and events and supported public funding of the project. The public input has been incorporated into the solicitation and the CRA is preparing to issue the solicitation which requests statements of qualifications and conceptual proposals from firms that are qualified to renovate and occupy the old high school. The firms also need to have a proven record of providing the financing necessary for the renovations as well as long-term operation and maintenance. The requirements of the solicitation are demonstrated financial capabilities; conceptual renovation plan, description of proposed uses and a business plan for long-term operation. There is a mandatory pre-poposal meeting scheduled for May 12, and proposals will be due on June 21, 2006. There were no comments from the board on this item. Ms. Bright indicated legal staff has approved the draft solicitation. C. Consideration of CRA Land Trust - Tim McKenzie, Burlington Associates Ms. Bright indicated this item was a continuation of an idea from the former director to create a land trust. Currently the CRA staff did not have a mechanism for implementation. In January, she spoke with Burlington Associates who helped Delray implement their program. Mr. McKenzie indicated to her that there are policy issues involved. Mr. McKenzie indicated for a Community Land Trust Program (CL T) to meet its full potential, the community needs to know and understand there is a big difference between an affordable ownership housing program and an affordable ownership payments program. The distinction has to do with outcome. He explained he has been involved with the start up of 80 Community Land Trust Programs and there are now close to 200 modeled after the ones from Burlington, Vermont. 21 BOYNTON BEACH CRA AGENDA ITEM REQUEST FORM Requested CRA Date Final Materials Must be Requested CRA Date Final Materials Must be Turned!!!!2 Meetln!! Dates Turned into CRA Office Meedn!! Dates CRA Office 0 January 10, 2006 December 27,2005 (Noon.) 0 July II, 2006 June 27,2006 (Noon) 0 February 14,2006 January 31, 2006 (Noon) 0 August 8, 2006 July 25, 2006 (Noon) 0 March 14,2006 February 28,2006 (Noon) 0 September 12, 2006 August 29, 2006 (Noon) ill] April II, 2006 March 28, 2006 (Noon) 0 October 10, 2006 September 26, 2006(Noon) -;,i;. . May 9, 2006 April 25, 2006 (Noon) EJ November 14, 2006 October 31 , 2006 (Noon) '. 0 June 13, 2006 May 25, 2006 (Noon) ED December 12, 2006 November 28, 2006 (Noon) NATURE OF AGENDA ITEM . Consent Agenda D Director's Report D Old Business D New Business D Legal D Future Agenda Items o Other Item DATE: May 4,2006 SUBJECT SUMMARY PARAGRAPH: eRA Board 6-month Continuous Improvement Plan At the May 2, 2006 City Commission Meeting, the results of the "Discussion of the CRA" require the eRA Board to establish a strategic plan for the next six months governing perfonnance standards of the agency. As a result of the last month's board direction to staff, the following items are in various stages of implementation: 1.) Conduct an HR Organizational Audit to evaluate board/staff interaction and communications. Interviews are complete and the executive summary should be ready for board review at the CRA Board meeting. The goal is to strengthen the Board's Rules of Governance as it relates to human resource practices of ~~ . 2.) Attorney Spillias and Usa Bright met with Attorney Cherof and Sharyn Goebelt, City of Boynton Beach Human Resources Director to create an I nterlocal Agreement to provide consulting HR services to .the Agency. This document is in the development stages and brought to the board at a later date. -- 3.) As a result of the meeting with the City's representatives, it was recommended that the CRA create HR accountability through the staff work program. Ms. Bright met with Dr. Willis and will be realigning the scope of work under the Finance Assistant position to handle the grievance and/or formal complaint process under the direction of the Executive Director. 4.) The organization audit revealed the need for closer communication with City to apprise them of the work of the CRA. In order to restore confidence in the agency, a spokesperson should be designated to provide regular updates to the City Commission on the activities of the agency. RECOMMENDATION: Discuss and outline the 6-month strategic plan for the CRA Board. FISCAL IMPACTIFUNDING SOURCE: Negligible to none. AL TERNATIVES: ~~t develop a strategy. ,] '-.: / C {-) \ I CRASTAFF:~')c(-L - t'~--t . sa Bright. Executive Di r T:\AGENDAS. CONSENT AGENDAS. MINUTES & MONTHL Y REPORTS\Completed Agenda Item Request Forms by Meeting\06 05 09 CRA Board Meeting\CRA Board 6-month Continuous Improvement Plan.doc r\ \) c. r~ L L L.J. C~RAIC~ & ASSOCIATES, INC Management and Organizational Consultants Designers nf "People Management!! System" >''''''~'~-~'_"~-~.,,~-,_.~~.,..,.......,......",,---..----~ ""'-~--'-'''-''''~'.~'~_____a~~'''a May 9th, 2006 Lisa Bright, Executive Director CRA of Boynton Beach 639 E. Ocean Avenue, Ste. 103 Boynton Beach, FL 33435 Dear Ms. Bright, Board Members and Mr. Spillias: The completed report is submitted for your review and information. It includes an Executive Summary, Findings, Comments and Recommendations and, the Interview Questions. A formal presentation will be made to you and other individuals, on Tuesday. May 9th. Thank you for the opportunity to provide consulting services to the eRA Board and CRA It is very admirable that you have all been so willing to open yourself up and your organization to feedback from the Board members, your employees and the Legal Counsel to the Board. It is obvious that you want to make positive changes in the organization Overall, everyone was very happy that this process was occurring and are looking forward to moving ahead in a positive way. I want you to understand that my role is not to cover up or hide problems that have been presented by the CRA staff and stakeholders during their one-on-one interviews with me. My role is to identify problems and issues that have had either a positive or negative effect on the efficient and effective operation of the CRA. I anticipate that if you resolve the internal strife and prevent any further scandals (recent newspaper articles) that the City of Boynton Beach Commission will not dissolve the organization. A/though some of the comments are critical, you need to understand that the Board members, employees and Legal Counsel were using the interview process as an opportunity to vent and be heard. This is very common in all organizations. Obtaining stakeholders' opinions about issues that affect their work place is a common Organizational Development intervention strategy. Also, the questions were very specific so I was able to obtain very specific data. I know that you all really appreciated being interviewed by an outside consultant concerning the CRA Board and CRA staff, and I believe changes and improvements can be made. However, change will not be successful if there continues to be dissension. 3 Phone: (561) 750-8669 www.ljcraig.comlcwillis@ljcraig.com P.O. Box # 1628 Boca Raton, FL 33429-1628 Fax (561) 391-5077 The many dangers of leading organizations are addressed in detail in Ronald A. Heifetz and Marty Linsky's book, Leadership on the Line: Staying Alive throuah the Dangers of Leading. Heifetz discusses dealing with management and human resource problems which include discourse and dissension in an organization. So the leaders, which includes the Executive Director of the CRA, all Board Members and the Legal Counsel, must be willing to listen to what each other has to say and then have the personal courage and strength to make positive changes. Doing this can also be dangerous as it is so eloquently stated in the book. You are all leaders, so this is highly recommended book which you should all read. Please review and consider all of this feedback, and my recommendations as a developmental opportunity the CRA. On Saturday, May, 6,2006 an editorial was written about the CRA. I agree whole heartedly with the final statements: " The eRA is on notice that it cannot afford any more internal strife. Its mission is too important and the obstacles ahead are big enough on their own." "Bottom line: The CRA must use its second chance and keep its act together." (Sun Sentinel, p. 16A, Saturday, May 6, 2006). s~erel~. _ ' ~C. LU~ Dr. Linsey C. Willis, SPHR President 4 EXECUTIVE SUMMARY An organizational audit of the Community Redevelopment Agency (CRA) of Boynton Beach Florida was conducted by Dr. Linsey C. Willis, SPHR, President of L.J. Craig & Associates, Inc., a management and organizational consulting firm Interviews were conducted during the weeks of April 24 and the first two weeks of May 2006. Nine (9) employees, seven (7) stakeholders (i.e , Board Members) and the Board Attorney were interviewed in small group meetings or private meetings by Dr Willis each for up to one (1) hours. The following individuals (employees, Board members and Legal Counsel) were interviewed: 1. Henderson Tillman, Chairman, CRA Board 2 Stormen Normet, Co-Chairman, CRA Board 3. Marie Horenburger, Board Member 4. Alex DeMarco, Board Member 5. Steve Myott, Board Member 6. Jean Heavilin, Board Member 7. Lisa Bright, Executive Director, CRA 8. Robert Reardon, Interim Assistant Director CRA 9. Phyllis Zitcer, Executive Assistant 10. Susan Harris, Finance Assistant 11. Vivian Brooks, Planning Director 12. Vince Johnson, Planning and Development Manager 13. Rosalind Murray, Economic Development Director 14. Margee Apelsperger, Marketing and Communications Manager 15. Stacy Gallup, Administrative Assistant 16. Ken Spillias, Legal Counsel Each individual was provided with the newly drafted Boynton Beach Community Redevelopment Agency (CRA) Rules of Governance and the CRA Office Policy Directives. and were asked to read the information prior to the interview. All responded to a standardized questionnaire (see the appendix) The interviews took less than twenty (20) hours to complete. The interview data was reviewed and included comments made by the interviewees The data was categorized in terms on general themes; i.e., board interference. communication, board training etc. The general themes formed the basis for the .;, recommendations. This report outlines the issues raised by staff and the other stakeholders many of which were repeated by more than one person. The report also outlines specific recommendations for resolving the problems and improving the operation of the CRA, particularly in terms of Board Governance and communication between the Board of Directors and CRA staff. Many voiced the same opinions in certain areas, so in order to shorten the report and not be repetitious, some of the opinion statements were consolidated into one global statement about a particular issue. Based on the interviews several issues emerged and are listed below as either problems or areas in need of improvement. Further detail on the following is outlined in the Findings and Recommendations section of this report. Problems . Continuation of Board interference in CRA operations; e.g., undermining of Executive Director's authority and dictating to her how to manage and run the CRA . Amount of time Executive Director has to spend responding to some Board members regarding internal management of staff . Private discussions/conversations some Board members have had with staff regarding CRA issues brought to her attention after the fact . Political aspirations of one Board member . Board member role clarification . Some Board members appear to lack the experience and knowledge necessary to make meaningful, valid and relevant contributions to the operation of the CRA . Behavior of some Board members at monthly meetings . Disrespectful treatment of CRA staff by some Board members . Some Board members are already violating Rules of Governance . Continuance of staff intimidation by some Board members Areas in Need of ImDrovement . Length of monthly Board meetings . Written goals and objectives are needed; i.e., a Strategic Plan is needed . A performance appraisal system is needed which is linked to each employee's goals and objectives . Communication process between Board members and staff; i.e., communication not cleared through the Executive Director or inappropriate communication . Team building for CRA staff 6 . Role clarification for some CRA staff; e.g.. role conflict . Board training .. Trust between internal CRA staff and Board .. Mission and vision of CRA needs further clarification .. Further revisions needed to Rules of Governance In an Agenda Item dated May 4, 2006, at the City Commission meeting (see appendix), the CRA reported items in various stages of implementation. This reinforces that the administrative staff are working hard to make improvements. However, it should be noted that no change happens overnight, particularly culture change. Also, although a Strategic Plan can be prepared in less than six (6) months, all of the other improvements cannot happen overnight. Based on research, organizational change can take several years before measurable improvement is evident. Furthermore, it took many years of poor management, weak leadership, no internal controls, no strategic planning and inappropriate behavior on the part of some personnel and Board members to cause the eRA to become dysfunctional. No one should expect the recommended improvements to happen in six (6) months or less. Change and improvement starts at the top of any organization. As members of the Board of Directors, you are the top of the organization, so whatever you decide to do about the problems needs to unequivocaC and you all need to have a shared mission. In other words, you must be truly committed to change, and your decisions must be based on a majority vote, given that each Board member has one vote, and no Board Member has more power or authority than another Board member. Moreover, in order for change to take place people must be able to "check their egos" at the door, so to speak, and remember that the overall goal is to improve the City of Boynton Beach and not to further their careers or undermine what other people are doing. If Board members and some staff continue to undermine the Executive Director, and CRA staff do not work as a team, other scandals may occur which the media could identify. Then staff turnover will continue and completion of the work will stall. Then the City Commission may have no choice but to dissolve the eRA Board. This could set the City of Boynton Beach's development plans back and be a great embarrassment for the City and its citizens. Based on the work I have already completed for the CRA, my knowledge of its mission, some of the projects, and that it was created to be an independent governmental agency, to dissolve it would be a mistake. Furthermore, it would be a sad commentary on management and leadership if elected officials, who do are not the subject matter experts within a government agency, and do not perform the hard work, voted to dissolve another government agency because of power struggles, internal strife and ineffective leadership on the part of the Board of Directors. 7 In summary, the recommended changes need to take place so that the CRA remains an independent agency that will work toward the revitalization, beautification and economic viability of the City of Boynton Beach. 8 Recommendations for Improvement 1. Finalize inter-local agreement with the City of Boynton Beach Human Resources Department which will provide CRA employees legal protection under the state and federal employment laws (Le., Title VII of the Civil Rights Act of 1964. the eRA of 1991 the FMLA, the Age Discrimination in Employment Act etc.) 2. Put all Board members on notice that they will be dealt with accordingly if they do not comply with the Rules of Governance 3. Further clarify all points in the Rules of Governance. 4. Create a performance appraisal document for the Executive Director to ensure that the CRA Board annually appraises his/her performance, 5. Change the wording under 9.C to reflect "employment" instead of appointment. 6. Change the wording under 9 D. It infers that the Board of Directors can closely supervise the Executive Director. Perhaps this wording is why the Chair is so involved with day to day activities, he may be confused by the wording, He may also be confused as to what his real role is. 7. Remove the words "closely scrutinizing" (9. O. line eleven) and revise to reflect overseeing all aspects of the CRA....." This word may be interpreted by some Board members that they can micro manage the Executive Director. Examples of micro management are: 1) taking job tasks away from one person and assigning to another; 2) directing staff to do something outside the knowledge of the Executive Director; and 3) questioning the qualifications and skills of staff who have already been hired. 8. Change the wording under 9. F. to include putting all notification "in writing whenever possible." 9. Follow Roberts Rules of Order at all Board meetings. Assign the Executive Director or Legal Counsel to be the Parliamentarian. Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 9, 2006 E. Approval of Increase in CRA Per Diem Travel Rate Ms. Horenburger asked whether there was any enabling legislation containing a standard for per diem travel expenses. Mr. Reardon responded the existing level of per diem rate is above the standard. Motion A motion was made by Ms. Horenburger to approve the increase in the CRA per diem travel rate. Vice Chair Norem seconded the motion that unanimously passed. G. Approval of Job Task Analysis Work Product & Recommendations Vice Chair Norem asked what the basis of arriving at the salary figures in the product was. Lisa Bright, Executive Director, explained Dr. Lindsey Willis, who conducted the analysis, included the recommendations, which was not part of the scope of services. Ms. Bright indicated she would prefer to handle salaries in a different manner and had no objections to approving the item less the salary recommendations contained in Section C, Prooosed Oraanizational Chart and Other Recommendations of the report. Ms. Horenburger questioned the likelihood of a staff reduction as it pertained to the new eminent domain changes. Ms. Bright anticipated staffing would remain at the current level. Motion A motion was made by Ms. Horenburger to approve Item G, with the exception of Section C as previously discussed. Vice Chair Norem seconded the motion, which unanimously passed. I. Approval of Fac;ade Grant. Main Street Car Wash. $15,000 Mr. Sims questioned the amount of this item, which was listed in previous minutes as $5,000. Additionally he requested clarification on the amount of match required for the program. Mr. Vince Johnson, Planning and Development Manager for the CRA, responded the first request for $5,000 was withdrawn by the owner who was still in the process of submitting invoices for payment. Mr. Johnson explained the owner spent $34,000 on the improvements. As a policy matter, the program will allow for a match of up to 50% and the recipient was entitled to the maximum allowable match of $15,000. Motion A motion was made by Vice Chair Norem to approve Item I, the grant award for Main Street Car Wash. Ms. Horenburger seconded the motion. Ms. Horenburger suggested putting the Fac;ade Grant Program to workshop. She expressed with so much redevelopment occurring, she would not want to see money spent on improving buildings that may be demolished or sold. Vote A vote was taken to approve the Fac;ade Grant for Main Street Car Wash and the motion unanimously carried. 3 :;;:-.. "",...-.~ -- .~, 11~~Y~T2~ eRA . East Side-West: Side-Seas".de Rena"lssance Finance Director Planning Director Finance Assistant Development Manager Key: To be hired In recruitment Assistant Director -' Economic Development Director Small Business Development S ecialist I Marketing & Communications Director Special Events Manager ,,':-lti'g"'ml,fi(jb~a"8mISJ.mlllRs-:-~r:S''r~'lilllt~':;r-~I' . . ' ., ,.RIl"_~""''''''~''''''__'J'!''L___,:l\,."....._,..,w.~I."",. _~~."",,~,..JftBJ.!;~!l!, ,,_. 'r' POSITION .. Executive Director Assistant Director 'ti. ';"{,~'''; :J;:'~:';;i~~...::'j~~~'''':f::~,'''~1";'~IF~/.,~ ' ;" Planning Director Development Manager ''':';: .,,~., +:',.~ltF:;'tn1,,:i~~:iilf,: "t't.:.-:~~,;~;t''J1::'~')~~'',,,\~!;,,,!'" , '~,,' ,- Economic Development Director Small Business Development Specialist ":',;:~: i.."1..~~~~~I'f~fi;~.:t'i~~'j:'tiii1;;":;;~,~;,.f': :r,~,;'i;-",f.'{:.:,:\,,' ~ ;,.i:;<,,"1,~n _ Marketing & Communications Director Special Events Manager Marketing & Events Assistant _. ,:;':{:,~._'"-t ,~t'1t,';i;r:j::',~;,~;;>",;j.. " '" Finance Director Finance Assistant . ,v';c',["""",' r'i. Administrative Services Manager Administrative Assistant Key -- Yellow highlighting = VACANT position Green highlighting = in recruitment I M"INIIVIUM,II~ID-Pc>.I~! II MAX.I~~M $ 94,000 $ 78,000 .. .;.:, " $ 72,000 $ 58,000 ,:'.j ''<l.~J,;''~,,;,;,:~:\ $ 75,000 $ 40,000 J,~ . . ~\~'j;'li~,1.:~,\;,i~ $ 55,000 $ 45,000 $ 30,000 , , $ 66,000 $ 45,000 ~l'".,.., . $ 42,000 $ 30,000 .',.'. $ 116,000 $ 90,000 . ",j.' .'~"j. :,"""., $ 86,000 $ 74,000 ~~'~",-j",,~>~~:'~ ". , $ 87,000 $ 55,000 ..',1.....',;...;;-~;,.""';< $ 67,000 $ 60,000 $ 38,000 $ 80,000 $ 64,000 $ 56,000 $ 38,000 " $ 140,000 $ 110,000 , , $ 98,000 $ 90,000 $ 99,000 $ 70,000 , , " $ 84,000 $ 75,000 $ 46,000 $ 92,000 $ 80,000 $ 75,000 $ 46,000 Source: 2005/2006 HR Organizational Study of CRA and Job Analysis Study by L. J. Craig & Associates Boynton agency, staff vent in report By Will Vash Palm Beach Post Staff Writer Tuesday, May 16, 2006 BOYNTON BEACH - Call it Therapy 101 or a full-tilt gripe session, Either way, Community Redevelopment Agency board members and staff didn't hold back during interviews with a management consultant assigned to review the public agency as it hammers out new rules of conduct. At the top of the concerns was the meddling of agency board members, according to the report by L.J. Craig & Associates of Boca Raton. The review, meant to identify communication problems and offer advice to combat them, highlights the strained relationship between staff and unpaid agency board members through a series of unattributed comments. Agency Vice Chairman Stormet Norem, who was appointed to the body in January, said he hopes the review will mark a turning point. "If nobody wants to be embarrassed, then don't do anything to be embarrassed about," Norem said. "I think this can be fixed and I think we're on track to do that." City commissioners publicly discussed disbanding the agency board earlier this year after allegations of unethical behavior surfaced. In the end, the board was given a reprieve contingent on cleaning up its act. The report said agency members can do that by leaving staff members alone, "Just because the past director treated the staff as 'glorified secretaries' does not mean this behavior can continue," the report concluded, "They must also stop expecting staff to serve as their personal staff." New rules are supposed to prevent agency members from making unannounced appearances and usurping the executive director's authority, but the line is still murky, "We've had incidences lately that have made staff very distressful," agency Executive Director Lisa Bright told the board last week, Some board members "are unwilling to give me that authority to do my job." One recent example was when Chairman Henderson Tillman had a heated argument with staff and told Bright not to place an item involving the internal hiring of an assistant director on an upcoming meeting agenda. "At the time we were trying to build in governance procedures, I didn't think it was fair or that it would be done right," Tillman said last week. "If someone felt wronged about it or I approached it wrong, I apologize." Board members told Tillman he did not have the power as chairman to unilaterally tell staff to remove items that fell under the purview of the executive director. "It should have stayed on the agenda," Norem said. "Let the board deal with each issue." That incident brought up another loophole: The board can't discipline itself. Agency attorney Ken Spillias said he was working with the city attorney on rules giving city commissioners a mechanism to do just that in case of future problems with the agency. Besides adding regulations to prevent board interference, the report also recommended media training lor board members so "they can all speak with one voice" and that all members should be preparerl fr-r meetings, "Board members must read the reports before the monthly meetings," the consultant concluded, "It has been apparent to many staff and other board members that some members have no idea or understanding of what the issues are," Agency board member Steve Myatt said the consultant's report will be a useful tool. "I think it was good sounding board for everyone," he said, "We have got to do it right" Meeting Minutes Community Redevelopment Agency Boynton Beach, FL XII. Comments by Executive Director August 8, 2006 The MLK RFP's were received and Ms. Bright reported two proposals met the deadline and a third did not and was returned. Staff would begin reviewing the qualifications and the goal was to courier the qualified proposals to the board by Friday. Ms. Bright announced the City Commission would be recognizing Mr. DeMarco next week for his service. She invited the members to attend. Ms. Bright printed a cover sheet of an agenda item for the six-month board plan the CRA follows that would be used to apprise the City Commission of their efforts. Chair Tillman explained he had received a number of calls about how information is given to the City Commission and stressed the communication must be ongoing and properly channeled. The Executive Director meets with the City Manager. That relationship needs to be reaffirmed and continued. Chair Tillman indicated by doing so, the structure, integrity and creditability of the CRA will be maintained. If an individual Commissioner wants the Executive Director to do something, it may not always be in line with the CRA Director job responsibilities and in effect, that Commissioner may be asking the Executive Director to do something outside the purview of her job description. Ms. Heavilin explained while she was Chair of the CRA, it was requested she continue meeting with the City Commission for informational purposes. Ms. Bright's direction comes from the CRA board. The City Commissioners communicate through the Mayor and any directives should come from the CRA. Ms. Bright reported she meets with Commissioners about once a month for a recap and did not feel any Commissioner had been over utilizing her time, nor did she feel her job had been hindered. There were no written reviews of those meeting. The meetings were short and usually to answer questions Commissioners had from their constituency. Ms. Bright explained the CRA follows protocols. Mayor Taylor was present and indicated in his A.- mind, and he assumed, in the minds of the other Commissioners, the CRA operates "77" independently. The decisions, unless they have to do with zoning, do not come before the City Commission and those decisions are made independently. To date, he has met three times with the Executive Director, in the presence of the City Manager, once a month for informational purposes. He asked questions and noted not all Commissioners attend the CRA meetings and do not know what transpires. He reported he gains a lot of valuable information from those meetings. He announced he does receive calls from his constituency and he has never directed her to do anything, nor would he. He confirmed if he needed something, he would take it to this board. He recognized Ms. Bright works for the CRA, and indicated he would like to have the meetings continue. He also complimented the CRA on their selection of a tenant for the old high school. XIII. Comments by CRA Board Attorney Attorney Spillias provided an update on the St. Paul AME Church lease. He announced the Chair sent a letter to the State Attorney and they were waiting for a response. He also 17 ~~~~Y~e~iCRA . East Side-West S',de-Seas'lde Renaissance MEMORANDUM TO: Janet M. Prainito City Clerk FROM: Robert T. Reardon CRA Assistant Director RE: January 29, 2007 R07-012 -Interlocal Agreement Between the City and CRA for Human Resources Services DATE: As requested, attached is the original contract executed by the CRA Chairman and the CRA Executive Director for the above referenced ILA. Once the ILA is executed, please send us a copy for our records. Thank you. Jl~ Robert T. Reardon, Assistant Director Attachment 915 South Federal Highway Boynton Beach, Florida 33435 Ph: 561-737-3256 Fax: 561-737-3258 2 RESOLUTION NO. R07- 0 ( ~ 3 4 5 A RESOLUTION OF THE CITY COMMISSION OF 6 BOYNTON BEACH, FLORIDA, APPROVING THE 7 ~ AGREEMENT BETWEEN THE CITY OF 8 BOYNTON BEACH AND THE BOYNTON BEACH 9 CO~Y REDEVELOPMENT AGENCY TO 10 PROVIDE HUMAN RESOURCES RELATED SERVICES 11 TO THE CRA; AND PROVIDING AN EFFECTIVE 12 DATE. 13 14 15 WHEREAS, the ~ Agreement permits the Boynton Beach Community 16 Redevelopment Agency (CRA) to utilize the City's Human Resource services including 17 participation ion the annual enrollment for medical and related insurance policies, 18 participating in New Hire Orientation for benefits, assistance with recruitment, records 19 management as well as access to City Human Resources staff for Human Resources 20 questions; and 21 WHEREAS, the City Commission of the City of Boynton Beach, upon 22 recommendation of staff, deems it to be in the best interests of the residents and citizens of the 23 City of Boynton Beach to approve the Agreement between the City of Boynton Beach and 24 Boynton Beach Community Redevelopment Agency permitting the CRA to utilize the Citvs 25 Human Resources Department for Human Resource related services, 26 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF 27 THE CITY OF BOYNTON BEACH, FLORIDA, TIIA T: 28 Section 1, Each Whereas clause set forth above IS true and correct and 29 incorporated herein by this reference, 30 Section 2. The City Commission of the City of Boynton Beach, Florida does S:\CA \RESOlAgreements\lnterlocals\!LA with eRA (HR Services),doc II ; , I hereby approve the Agreement between the City of Boynton Beach and the Boynton Beach 2 Community Redevelopment Agency permitting the Boynton Beach Community 3 Redevelopment Agency to utilize the City's Human Resources department for Human 4 Resource related services, a copy of said Agreement is attached hereto as Exhibit "A". 5 Section 3. That this Resolution shall become effective immediately upon passage. 6 PASSED AND ADOPTED this ~ day of January, 2007. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2 29 30 31 32 ATTEST: Yn.~ .----. .. S:\CA\RESO\Agreements\Jnterlocals\ILA with CRA (HR Services).doc .---"~ CITY CLERK'S OFFICE MEMORANDUM TO: Sharyn Goebelt Director, Human Resources FROM: Janet M. Prainito City Clerk DATE: February 15, 2007 RE: R07-012- Inter/ocal Agreement between CRA and City for Human Resource Services Attached for your information and files is a copy of the agreement stated above that was approved by the City Commission at their meeting on January 16, 2007. Thank you. {rDT. 'tn. p~ Attachment CC: Lisa Bright, Director eRA Finance 5: \CC\ WP\AFTER COM MISSION\Departmental Transmittals\2006\Sharyn Goebelt-D9-13' 2 DD6.doc ~ 01- 0 ld-.. INTERLOCAL AGREEMENT BETWEEN THE BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY AND THE CITY OF BOYNTON BEACH FOR HUMAN RESOURCE SERVICES 1 THIS AGREEMENT is made and entered into this ~ day of Lebruarffi ' 200~ by and between the BOYNTON BEACH COMMUNITY REDEVELOPMENT A ENCY ("CRA") and the CITY OF BOYNTON BEACH ("CITY") (collectively referred to as "the parties"). WITNESSETH WHEREAS, the CRA is a public Agency created pursuant to Florida Statutes Chapter 163, P art III and has as its purpose the redevelopment of portions of the City of Boynton Beach located within its geographically designated redevelopment area; and WHEREAS, the City is a Florida municipal corporation; and WHEREAS, the parties hereto desire to enter into an Interlocal Agreement in order for the CITY to provide Human Resource Services to the CRA. NOW THEREFORE, in consideration of the mutual covenants and promises herein contained the parties hereby agree as follows: 1. Term. The term of this Agreement shall be on a fiscal year basis commencing on ,. " and ending on September 30, 2007, with automatic renewals each year unless otherwise terminated in writing by the parties at least 30 days before the termination date. 2. Scope. (a) Access to Services: Participation in the annual enrollment for medical and related insurance policies; Participation in bi-monthly New Hire Benefit Orientation meetings; Participation in the City's WelIness Fair; Access to CITY consultants for customer service regarding benefit plans and customer service issues; Access to Benefit Administrator for questions and consultation. (b) Recruitment: Clerical skills testing; Advertising to fill vacant positions; (utilization of Bayard Advertising for reduced rates); Collection and review of applications for completeness; Conduct criminal background screening with third party vendor. Costs associated with advertising and background screening will be paid for by the CRA. (c) Records Manager: Personnel file management as requested by the CRA. Id) Other: Access to Human Resources staff bye-mail, phone, ur scheduled appointment for day to day Human Resources related questions; Access to City Policies and interpretation; Access to City's Human Resources Director or other appropriate personnel regarding applicable human resources-related legal requirements and compliance with such requirements. The Human Resources staff does not provide legal opinions. (e) Special Proiects: Specific Consulting Services (other than the consulting services described in (a), (b), (c), and Cd) above); Exit Interviews; Reclassification Analysis; Human Resources Investigations, The CITY will be responsible for providing the following Organizational Development Service to the eRA: (f) Training: Boynton Beach Learning Center class participation; Computer Training; and On-Line Class participation, 4. Cost. The CRA agrees that it will pay FIVE HUNDRED DOLLARS ($500.00) per month for the services listed in (a), (b), (c), and Cd) above. The eRA further agrees that it will pay ONE HUNDRED FIFTY DOLLARS ($150.00) per hour for the services listed in (e) above. The services listed in (f) above shall be paid by the CRA at a rate of FIFTY DOLLARS ($50.00) per class per student. 5. Office Location. The City's Human Resources Department is located at City of Boynton Beach City Hall 100 E Boynton Beach Blvd, Boynton Beach, FL 33425 (561) 742-6275 6. Applicability of Sunshine Law. The parties hereto agree that the conduct of the affairs of the Human Resources Department shall be in accordance with Chapter 286.0] 1, Florida Statutes, governing the Sunshine Law and that the records of the Human Resources Department shall be deemed Public Records pursuant to Chapter 1] 9, Florida Statutes. and administered accordingly. 7. Governio!!: Law. This Agreement shall be governed by and construed 1D accordance with the laws of the State of Florida, 8, Severability. If any provision of this Agreement or application thereof to any person or situation shall to any extent be held invalid Or unenforceable, the remainder of this Agreement, and the application of such provisions to persons Or situations other than those as to } which it shall have been held invalid or unenforceable shall not be affected thereby, and shall continue in full force and effect, and be enforced to the fullest extent permitted by law. 9. Entire Aereement. This Agreement constitutes the entire understanding of the parties and any previous agreements, whether written or oral, are hereby superseded by this Agreement. This Agreement may be modified in accordance with Paragraph 11 below. 10. Modification of Aereement. This Agreement may be modified upon mutual consent of the parties only in writing. 11. Bindin!! Authority. Each person signing this Agreement on behalf of either party individually warrants that he or she has full legal power to execute this Agreement on behalf of the party for whom he or she is signing, and to bind and obligate such party with respect to all provisions contained in this Agreement. 12. Disputes. In the event of any dispute arising among the parties with respect to the interpretation of the respective rights or obligations provided for by this Agreement, the same shall be resolved by mediation with such mediation to be conducted between the City Attorney and the CRA Attorney. If mediation is unsuccessful, any and all legal actions necessary to enforce this Agreemept will be conducted in Palm Beach County, Florida. No remedy herein conferred upon any party is intended to be exclusive of any other remedy, and each and every such remedy given hereunder or now or hereafter existing at law or in equity or by statute or otherwise. No single or partial exercise by any party of any right, power or remedy hereunder shall preclude any other or further exercise thereof. 13. Interpretation. This Agreement sball not be construed more strictly against one party than against the other merely by virtue of the fact that it may have been prepared by counsel of on of the parties. 14. Notices. Any and all notices required or permitted to be delivered pursuant to the terms of this Agreement shall be effective upon receipt, but in any event no later than three (3) business days after posting by U.S. Mail, certified or registered, postage prepaid or one (1) business day after deliver to an expedited courier service such as Federal Express to the addresses listed below. Any of the parties described herein may change their address by giving notice to all other parties set forth in this subsection. If tbe CITY: City of Boynton Beach 100 East Boynton Beach Boulevard Boynton Beach, Florida 33425 Attn.: Kurt Bressner, City Manager With Copy to: James A. Cherof, City Attorney 3099 East Commercial Boulevard Suite 200 Fort Lauderdale, Florida 33308 3 If the eRA: Boynton Beach Community Redevelopment Agency 915 S. Federal Highway Boynton Beach, Florida 33435 Attn.: Lisa A. Bright, Executive Director With Copy to: Kenneth G. Spillias, Esquire Lewis, Longman & Walker, P.A. 1700 Palm Beach Lakes Boulevard, Suite 1000 West Palm Beach, Florida 33401 15. the parties. Effective Date. This Agreement shall become effective on the date last signed by ~ Ik Date ~isa :ri:tE:ec~irector ~ COMMU~NITYREDEVELOPMENTAGENCY OF THE C Y OF BO }ToJON BEACH By: ~ ~/(--- Chairan ~f;l~?; 2 ~, /11'Z__ CITY OF BOYNTON BEACH BY~ DatqMaY-~:_OJ_07 Attested by: U '/U...t~< Kurt Bresner, City Manager I.\Client DocumentslBoynton Beach CRA\24 J9-000\Agreements\Final Human Resources ILA (2),doc 4 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida May 8, 2007 Motion Ms. Horenburger moved for approval. Ms. Heavilin seconded the motion that passed unanimously. CRA Attorney Spillias noted the last page of the contract, the signature page, contained the legal sufficiency certification requested by Ms. Horenburger. XI. Comments by Staff Susan Harris, Finance Assistant, Human Resources Administrator, advised of recent discussions at the board level regarding the recruitment process in order to ensure the largest applicant pool possible for any position within the CRA. Subsequently, Ms. Harris and City staff implemented the City's own recruitment processes at the CRA. More than 150 resumes and applications were received for the Administrative Services Manager position. Of those 150, seven candidates were interviewed, and on the basis of those interviews, Ashley Buckley was hired as the new Administrative Services Manager. Ms. Buckley previously worked with a 21- member board with the Heritage Conservancy in Pennsylvania. XII. Comments by Executive Director Ms. Bright commented she received a telephone call from Stormet Norem apologizing for not being able to attend the meeting. His wife unexpectedly lost her 42-year old brother as a result of a heart attack, and his wife's mother was having emergency surgery tonight on her appendix. Staff recently had discussions to go forward with the purchase agreement with the Women's Club. Discussions were had at the City Commission level to ensure staff was reviewing the operations and maintenance of the Club. Staff also met with the Club's attorney. The Women's Club approached staff, and staff agreed to the general terms of $1.6M for a purchase price of a property valued at $2.4M. In exchange, they would like to use the facilities which could be incorporated into a purchase agreement. Staff also evaluated the Club's past three years of operating expenses, which average about $65,000. Last year they were $7,000 in the red. One of the reasons Ms. Bright made these remarks under "Executive Director Comments" was the Club's board did not approve of the agreement. Therefore, at this time, staff wished to entertain a Letter of Intent to their board. If their board approved it on Thursday prior to summer recess, staff could negotiate a purchase agreement through CRA counsel. Ms. Bright advised that staff brought this issue forward for discussion when they were retracting from monies from the direct incentive funding agreement, and the opportunity arose. She inquired whether the board had any interest in pursuing this issue. The $1.6M purchase price would go to the Women's Club for their fund raising efforts in the community. Ms. Horenburger believed rather than the board spending more than $1.5M, consideration might be given to a purchase option contract with a right of first refusal in exchange for paying 20 htto: / /www.sun-sentinel.com/news/local/oal mbeach/sfl- flpboyntoncuts0707 pnjul07, 0,3994664.story Boynton Beach plans to cut jobs and senior transit services Popular transit program among possible targets By Erika Pesantes South Florida Sun-Sentinel July 7, ::007 Boynton BeachCommissioners will begin slashing the city's proposed operating budget of $75 million during a public budget workshop Tuesday following property tax relief in Tallahassee. In a memo released Friday, city manager Kurt Bressner proposed a plan that would make program cuts and increase revenues through a utility tax that would bring in about $2.5 million. The proposals would also plug the hole on a $1.2 million deficit and allow for a surplus of about $680,000. On the chopping block were the popular "Shopper Hopper" transit program used mainly by seniors and a grant program for neighborhood improvements. The plan included cutting 21 city jobs, of which 10 are currently filled. The salary savings amounted to $1.4 million. "Nobody wants to cost anybody their job. However, it's a tough time right now," Mayor Jerry Taylor said. "We have to make the dollars stretch as far as they will." The city slowed down hiring employees in February, and of about 900 city jobs, 109 remain vacant, Bressner said. Employees who might lose their jobs include four bus drivers, a mass transit supervisor, a city clerk's office assistant, a city attorney's administrative associate, a tennis professional, a recreation manager and a utilities plan review analyst. The public is invited to comment on the 2007-08 budget proposal during the 11 a.m. Tuesday workshop held at the Boynton Beach City Library, 208 S. Seacrest Blvd. On Friday, seniors leaving the city's senior center objected to ending the "Shopper Hopper" program, which drives them to Publix, Winn-Dixie, Wal-Mart, Target, the Boynton Beach Mall, the city library and Oceanfront Park. "I'll be 90 next month, how am I going to get around?" said Rose Orlino. Milburn Lester, an 86-year-old World War II veteran, said he'd be devastated without the "Shopper Hopper." He stopped driving three years ago when his eyes failed him because of macular degeneration. "It would practically, honestly, force me out of the town," he said. "I'm pretty dependent on it." The 13-year transit program is paid for using $225,000 in local option gas taxes and $52,000 from the city's general fund. Bressner proposes using that money for street repairs. Additional budget savings included doing away with the City Hall in the Mall location and transferring services for recreational program registration to Intracoastal Clubhouse once it's built; not allowing for additional wage and benefits during collective bargaining discussions with police personnel and blue-collar employees;and not budgeting for subsidies for the redevelopment project for the Martin Luther King Jr. Boulevard corridor in the Heart of Boynton. The city also hopes to transfer special events expenses to the Community Redevelopment Agency, Additionally, Bressner offered in the proposed budget an inventory of the city's 684 services and programs and whether those should be retained, eliminated or reduced. The cuts allow for a $6.8 million savings, which Bressner said commissioners might have to seriously consider if voters in January support the super homestead exemption referendum. Some include cuts that affect basic services such as police patrolling and fire-rescue response times, library hours and contracting the county for animal control services. "There are so many what-ifs in the process and we're trying to do the behind the scenes due diligence," Bressner said. how it adds up: Propos ed budget - $75 million Proposed job cuts - 21 Projected salary savings - $1.4 million Overall projected savings - $6.8 million Erika Pesantes can be reached at epesantes(Ci)sun-sentinel.com or 561-243-6602. Copyright @ 2007, South Florida Sun-Sentinel MEETING MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BUDGET WORKSHOP HELD AUGUST 9, 2007 AT THE WOMEN'S CLUB, BOYNTON BEACH, FLORIDA@ 6:00 P.M. Present: Jerry Taylor, Chair Jose Rodriguez, Vice Chair Carl McKoy Lisa Bright, Executive Director Susan Harris, Interim Finance Officer Margie Adelsperger, Marketing & Communications Director Vivian Brooks, Planning Director Mike Simon, Development Manager Absent: Mack McCray Ron Weiland I. Welcome Lisa Bright, Executive Director, opened the workshop at 6:06 p.m. and welcomed all. She provided a description of the CRA area and explained the eRA was a quasi-judicial board with the goal of increasing the tax base. She explained the function was to reinvest those revenues back into the community through programs and projects. Ms. Bright introduced the CRA team present. Margie Adelsperger, Marketing & Communications Director, thanked all for attending Summer Fest. Special events were an important part in marketing the downtown. She reviewed their goals and announced they were establishing a "Brand" to attract developers to build within the district, attract and retain visitors to the downtown to work and visit and deliver a clear message of the CRA program. In 2005, the CRA published an RFQ for a marketing and public relations consultant. Four companies responded and Ambit was selected and hired in 2006. Kathy Koch was present to make the first presentation. II. Presentations · Marketing and Communication Program - Ambit Marketing Kathy Koch, Creative Director, explained Ambit Marketing was a full service public relations and marketing firm. She highlighted the firm has a close relationship to the Urban Land Institute (ULl) South East Florida District Council. Articles and advertisements have been in Florida Trend magazine and the firm had over 20 years of publiC relations and marketing experience, as well as extensive economic development 1 Meeting Minutes eRA Budget Workshop Boynton Beach, Florida August 9, 2007 to $4.99 per rider in July 2007 with the average amount being $6.28 for the prior 12 months. The total cost to operate the system was $500K. Chair Taylor asked about trips to the beach. Ms. Stahlman explained this was a separate trolley route which would end in October, and that trolley ran only on the weekends. She explained it had not had a lot of riders. Ms. Harris explained because of low ridership on the beach trolley, the CRA was planning to eliminate that trolley and save about $46K per year. Vice Chair Rodriguez asked how much more would it be to add an additional beach stop to an existing trolley route. Ms. Stahlman was open to suggestions but indicated when she surveyed the riders and asked where riders wanted to the trolley to go, most respondents said SuperTarget and Wal-Mart, not the beach; however, as to how much more it would cost to add a beach stop to an existing route, Ms. Stahlman agreed to provide that information to the board. · Proposed CRA Police Program - Matt Immler. Chief of Police Matt Immler, Chief of Police, made a brief presentation. He reviewed in 2004 the CRA had funded four pOlice positions exclusively for the downtown Heart of Boynton (HOB) area, but the program was discontinued in 2006. Chief Immler announced he was looking to revitalize that plan within the boundary area. The target area was from Woolbright Road North, the C-16 Canal and from the Intracoastal East to 1-95 West. The Community Action Team (CAT) would be the primary unit to establish contact with area residents and neighborhood leaders and they would work with the community to ensure resources were properly targeted. Chief Immler explained there was an anti-gang activity in the area in the (-16 north area and the department was looking to add discretionary services. Discretionary Deployment was the ability to deploy officers that could be pulled away from handling calls and deploy them as needed. They wanted to try to deploy a portion of the shift away from handling calls for service and servicing the area through bike patrols and other neighborhood activities. When the workload increased, calls started to stack up. Chief Immler announced the Police Department does not have much in the way of discretionary patrols. He explained the Traffic Unit was occasionally used and was typically assigned to high traffic areas and communities with a high number of residential complaints of speeding. In October, almost all officers would be assigned to Congress Avenue because of the holiday traffic. The only true deployment capability they had were two sergeants and eight officers on the CAT. He explained the CAT team had become so effective in their investigations that they were working with other law enforcement agencies. He explained if they could fund a sergeant and five officers, 4 Meeting Minutes eRA Budget Workshop Boynton Beach, Florida August 9, 2007 those officers could be totally dedicated to the CRA area and would 'guarantee coverage. The proposed total amount requested was $573,853 which covered the officer salaries, equipment and vehicles. Vice Chair Rodriguez asked if the officers were in addition to the existing head count and questioned if the additions would result in double protection or if they could be redeployed somewhere else. Chief Immler explained the present team assigned in the area could be redeployed as needed. The new officers would be dedicated to the HOB area, allowing for a daily presence. The officers would be deployed in twelve hour shifts. Chair Taylor explained for a viable downtown, the area needed to be safe. He had concerns because he still receives complaints from area residents about the area between Federal Highway and the C-16 canal, and Boynton Beach Boulevard. Citizens had complaints about prostitution at night and about vagrants and possible prostitution during the day at the marina and Mangrove Park. He thought the area could be serviced better with the additional force. Chief Immler explained the officers would be hired directly into the unit and they would go out for bid as per the union contract. Board member McKoy observed the team was more community policing than hard core policing. The team would be assigned by Major Briganti. The hours could change but the positions would be full time. At the moment, there was a police presence at the marina, with four officers and two marine boats assigned there. The officers assigned to patrol the water also patrol the area on foot. Ms. Bright explained the CRA was working with Lt. Harris to keep one of the marine vehicles at the marina. Chief Immler indicated the goals were to increase police visibility and presence; foster a working relationship with downtown businesses and residents and open the lines of communication between the CRA and the Police Department. There were no further questions on the presentation. III. General Discussion of CRA Proposed Budget Ms. Harris distributed handouts and reviewed the change was a new salary chart. She explained the General Fund Revenues were anticipated to be $l1M with the bulk was in Tax Increment Financing (TIF) at $9.5M. Despite the City having to rollback rates due to property tax reform, they anticipated an increase in TIF. She suggested reviewing the General Fund Expenses by department and answering questions. She also pointed out the CRA was looking for business sponsorships of Festivals and Events. CRA General Fund Revenues &. Expenses 5 Meeting Minutes eRA Budget Workshop Boynton Beach, Florida August 9, 2007 they could by allocating some contingency funds. She pointed out the entire schedule showed what was coming in anc1 going out of each bond and the service was quite even despite two huge balloon payments. It is up to the board if they wanted to pursue the prepay option. The only real significance was the project fund summary tab and salaries and benefits. She pointed out she took the lowest numbers they had. Debt service showed $3M would be due this coming year. Employee Benefits, Code 59000 The corrected chart segregated out the merit pool of 8%. The 8% included the Executive Director and the Board reserved the right to go beyond the recommended amount. Ms. Harris checked with other CRAs and that figure was lower than the typical amount used. She pointed out CRA employees do not have a pension, rather they have 457b and 401a Deferred Compensation Plans that provide a dollar to dollar match, up to 5% of salary, with zero vesting, as well as an annual non-contributory contribution by the CRA into the employee's 401a. The total column reflected salaries without the 8% increase. There was discussion the increases should be commensurate with City employees. It was noted City wages were in negotiation. Ms. Bright explained she needed to hire a Finance Assistant immediately. There was discussion to wait on the other vacant positions in the organization chart until after the Visioning process was completed. IV. Closing There was no further business and the meeting ended at 8:50 p.m. C . Q^-uJ;.tj. J4uhJUVYIC01 Catherine Che~-Guberman Recording Secretary 13 BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY SALARY SCHEDULE and RELATED PERSONNEL EXPENSES BUDGET WORKSHEET FOR THE FiSCAL YEAR OCTOBER 1, 2007 - SEPTEMBER 30, 2008 HEALTH & CURRENT CAR FICA & 457(b) WORKERS NAME POSITION SALARY ALLOW. MEDICARE & 401(a) COMP TOTAL BRIGHT, LISA DIRECTOR $ 115,000 $ 4,030 $ 9,810 $ 13,786 $ 7,708 $ 159,534 BUCKLEY, ASHLEY ADMIN. SERVICES MGR. $ 48,000 $ 3,966 $ 5,754 $ 10,781 $ 72,341 ZITCER, PHYLLIS ADMIN. ASST, $ 35,700 $ 2,950 $ 4,280 $ 4,617 $ 50,403 ~ ...,"..."" ;....~..~... ': . lI,a ...~ "~ -,""""'U.r'_'l" ' '~':,,>_,1\r",.l1,;;,-:.,.~~~i.;..'1";:'j. ~~:'.~,l' ,~..>,"'''~ .\ " \.- :..:= ~'l[; '( ""t';.:;(^_ ....,J ';' .~t " , .," , " '.:'i" BROOKS, VIVIAN ASSISTANT DIRECTOR $ 94,000 $ 2,600 $ 7,965 $ 11,269 $ 7,521 $ 130,875 HARRIS, SUSAN INTERIM FINANCE DIR. $ 75,000 $ 6,197 $ 8,991 $ 7,387 $ 103,575 TO BE FILLED FINANCE ASSTlHR COOR. $ 55,000 $ 4,544 $ 6,593 $ 7,466 $ 78,003 ~'_ ;:....~.' .:....'-"l;,._.~,...lo....,:..""' ,'::...:. ~'~~""~"'.""':"" .~...,..i. ......'.:____,;;.04 .~'~'. .~'..., . ~ -'-". ....,~ ."'~ . ..~:..- ,,' , ' '#It l~";" VACANT DIR. OF PLANNING $ 86,000 $ 6,579 $ 9,546 $ 7,493 $ 109,618 SIMON, MICHAEL DEVELOPMENT MGR. $ 70,000 $ 5,783 $ 8,392 $ 4,480 $ 94,255 VACANT ECONOMIC DEVL. DIR. $ 87,000 $ 6,656 $ 9,657 $ 7,664 $ 110,976 VACANT SMALL BUS. DEVL COOR. $ 55,000 $ 4,208 $ 6,105 $ 7,466 $ 72,778 ...":_....,n.!'...::.~__.....Cl...;..'.......,.$"......,."'..,. ~~...~~..;~ ~~...~::,g.:.!'.'t..:. .'";t-"l. ~.. , .- - .......-. "t.:;.~'="'_" ,- .'" ' , .. I Jh,..,.>i\ ADELSPERGER, M. MKTING. & COMM. DIR. $ 60,000 $ 4,957 $ 7,193 $ 7,664 $ 84,614 WISER, ALINA MARKETING/ACCT. $ 32,000 $ 2,644 $ 3,836 $ 7,455 $ 48,495 ;.~ F~~:~' .P...."'.,' ;::"J'iX:~'."'.:".,;' 'I.; . a",i\~,,'J:'!...\':'.:'.G'. ~::''t'':';;.7'"')''';''' .~,.<:.. . .,.;,....... , " , ~. - : " .... - '... - , BISCUITI, KATHY SPECIAL EVENTS MGR. $ 57,000 $ 4,709 $ 6,833 $ 7,576 $ 80,678 Current Staff + Finance Assistant $ 641,700 Merit/Promotion Pool of 8% $ 51,336 Total Current Staff + Finance Asst. plus Merit/Promotion Pool I $ 693,0361 $ 6,630 I $ 53,5241 $ 76,9271 $ 72,655 I $ 902,773 I h)~ ~,~ll~ ,~\~ ':--:~'(~> II~ctY~T2~'\CRA . East Side.....\Nest S.,de......Seas.,de Rena",ssance Assistant Director _\ Finance Director Planning Director Economic Development Director Finance Assistant & HR Coord'nator Small Business Development S ecialist Accounting & Marketing Clerl< b Kev: To be hired la) This IS a shared position ' ~nn eRA, 490/0 City (b) This position will report to Finance I), Marketing p,s ,JI ! 'II LOIOR " Marketing & I Communications I' I Director(b) I : I .' I I Special Events I I ---I Manager (a){b) I ! c , , , . r-KC h ..- ,-' " . " ", -,,-... ." ~ ' '" ~ ,.. i~iit~jjii6iih!r>IYffTTr)f:f~:f~,~;:~0:rr=li--:' r."nlr-::!.;.-: .-:" ~!-. r r r:::;1';;V-' ,,-;, ., 'i l'-::J~.. .~~~ POSITION , " c. '., "^'" ....., ,,' , " " , <. ~ ;.....'" " " ~.... ...,,~.;. ;.....- .,.... '.::..~"",,.,;... -.' ~, Executive Director Assistant Director ~"".".,~. ,;,~~';J~';<'~~';'; .-;:"",'Q .,....-:;."'.~/.:;;.'~~: '. . ..:;' ';, '\<",;ji"~; Planning Director Development Manager . '.f. ."r. j... ';'':;,Ii~i;~'4~'li.; '';''<'"'~1rt!::?J~~::,:'~~1':d~~~..,\,:;",~:t..::: t ""l~,. -' ',," >~~.:, <, ~l :"...1: , . .l.: ~." Economic Development Director Small Business Development Specialist ~~,.;;4-:2'~.J;.~ .~,_~~~,~~*~,;4.'t~"i:Jirr."'6:R""'j4t;::;.:..)~....;t~:~'t';~,;:-; N ;-~. ,<; Marketing & Communications Director Special Events Manager ;: > ....~:~;I.f~~:t."'.;!j.;'....,4';...~~.~~~:.;,'f,::;Si;'~:~"1'~~'.l:"SLf ;,.~l;:_"'.~:;' "~~'~i;l-,:'~'~: "~:'.">'''' ',' ,'..., ".' .~. Finance Director ~~ Finance Assistant &\HR.Administrato~ Accounting & Marketing Clerk 7 '~', ;.;~7'.'" ~".!.':~\>li~YJl1,:6'':'"''.~:::'.:;:f.t,'tJ :,,:~';:.'''~:~~:-~ :-::.:'ll?'.: . - '''., Administrative Services Manager Administrative Assistant Key -- Yellow highlighting = VACANT position T I MINIMUM 1I MID-POINT I "'~:,., ::Jr~'":~:=;:::":.~"~.::::".' .' ,$ 94,000' $ 116,000 I!t' $ 78,000 $ 90,000 r;, ~t,"lJi'f:' ',,,-,,','" 't;,~jl"t:-, ~';\~::" ,'... $ 72,000 $ 86,000 ~ $ 58,000 $ 74,000 ~ ~~\ili\ ' .. ;;:'-i:~,,:\:,''':~;'> l~" ~'-;..:"'.~":' -,':' 'i' $ 75,000 $ 87,000 , $, ,40,000 ~ ,', , 55~O~O. ."':" )"Lot< ~ ~~.,,:'~ '"' '", ~- ~,lJ" I )0 ~ ". ,"~~~A" ...~,',~ ",> fl-: $ 55,000 $ 67,000 " $ 45,000 $ 60,000 .,"'''' ,~~:~'~.~ "-~~~1:".:U'I:~,~'~ ""~ ';", ~.-:;.t',~,;,7'?" $ 66,000 $ 80,000 $ 50,000 $ 64,000 $ 30,000 $ 38,000 :~ ':~:. ,,~,:,,~~'~l~':>":t.:'!_~ ~ ~.~.f ~'-' $ 42,000 $ 56,000 $ 30,000 $ 38,000 t SID _ 5'" 'J l'e, () Q .::",-.,-__0. ~ ;,. '::', , j:}".:\,._:.> ;..~",' .~, . ~ I MAXIMUM I $ 140,000 $ 110,000 .~;:r:-~'#"l~ ':.;1-,-t., $ 98,000 $ 90,000 (' ,. ,ff!::'~:"~'::" $ 99,000 $ 70,000 ~--~ .. . $ 84,000 $ 75,000 '." ',' ',', $ 92,000 $ 80,000 $ 46,000 ., ,:,... $ 75,000 $ 46,000 ...... .1 ..:J11 ~ T'i'" i--/.'_.. ( /$ ~'1--{ <..' ( / ''',/ f, J.'",)k. j;' ~t.P 'I., e {,:';) 'r"A ,,' tf (] ,., 'I' ,'.. "lp,'~"iJ,<s; (' I Ii"') ... '1" '> () . "".....Lyt~ I ...0 )-.""..:J~.-e.; f ..,;;" ..._~~'w., ~ jr. ~..,.f~'" BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY SALARY SCHEDULE and RELATED PERSONNEL EXPENSES BUDGET WORKSHEET FOR THE FISCAL YEAR OCTOBER 1, 2008 - SEPTEMBER 30, 2009 FY 08-09 HEAL TH & I FY 07-08 PROPOSED CAR FICA & 457(b) WORKERS COMP TOTAL TOTAL NAME POSITION SALARY SALARY ALLOW. MEDICARE & 401(a} COMP ABSENCES CURRENT PROPOSED BRIGHT, LISA DIRECTOR $ 125,000 $ 125,000 $ 6,500 $ 10,060 $ 13,875 $ 8,442 $ 4,000 $ 167,877 $ 167,877 BUCKLEY, ASHLEY ADMIN. SERVICES MGR. $ 49,920 $ 51,917 $ 3,972 $ 5,763 $ 8,074 $ 2,000 $ 69,728 $ 71,725 VACANT ADMIN, ASST. $ 35,700 $ 35,700 $ 2,731 $ 3,963 $ 4,906 $ - $ 47,299 $ 47,299 BROOKS, VIVIAN ASSISTANT DIRECTOR $ 101,520 $ 105,581 $ 3,900 $ 8,375 $ 11,719 $ 8,283 $ 3,000 $ 136,797 $ 140,858 HARRIS, SUSAN FINANCE DIRECTOR $ 80,250 $ 83,460 $ 6,385 $ 9,264 $ 8,112 $ 3,000 $ 107,011 $ 110,221 VillANUEVA, GHISH FINANCE ASSISTANT $ 45,000 $ 46,800 $ 3,580 $ 5,195 $ 8,045 $ 2,000 $ 63,820 $ 65,620 VACANT DIR. OF PLANNING $ 86,000 $ 86,000 $ 6,579 $ 9,546 $ 8,160 $ - $ 110,285 $ 110,285 SIMON, MICHAEL DEVELOPMENT MGR. $ 75,600 $ 78,624 $ 6,015 $ 8,727 $ 5,027 $ 3,000 $ 98,369 $ 101,393 - ~'-- VACANT ECONOMIC DEVL, DIR. $ 87,000 $ 87,000 $ 6,656 $ 9,657 $ 8,160 $ " $ 111 ,4 72 $ 111.472 >_~_c VACANT SMAlLBUS.DEVLCOOR, $ 55,000 $ 55,000 $ 4,208 $ 6,105 $ 8,110 $ " $ 73,422 $ 73,422 ADELSPERGER, M, MKTING, & COMM, DIR. $ 64,800 $ 67,392 $ 5,155 $ 7,481 $ 8,140 $ 3,000 $ 88,576 $ 91,168 WISER, ALINA MARKET I N G/EVENTS $ 37,000 $ 38,480 $ 2,944 $ 4,271 $ 7,986 $ 2,000 $ 54,201 $ 55,681 BISCUITI, KATHY SPECIAL EVENTS MGR. $ 61,560 $ 64,022 $ 4,898 $ 7,106 $ 8,123 $ 3,000 $ 84,687 $ 87,150 .-_._~ -",-.-'-"--" ----- OPTION 1: No Increases I I ~, r~Ji)JlJ21i I eOL: Pool of 4%-Staff Only J$ 20,626 FY 2008-2009 with increases i $ 661~2761"$' 10,400 I $ 51,383 I $,73,402 LL, 70,230 I-_~-=,-=~~I~..""". ]$' 891,691 I MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BUDGET WORKSHOP HELD ON THURSDA V, AUGUST 7, 2008, AT 6:00 P.M. IN CITY COMMISSION CHAMBERS, BOYNTON BEACH, FLORIDA PRESENT: Jerry Taylor, Chair Jose Rodriguez, Vice Chair Woodrow Hay Marlene Ross Ron Weiland Lisa Bright, Executive Director James Cherof, Board Attorney I. Call to Order - Chairman Jerry Taylor Chair Taylor called the meeting to order at 6:00 p.m. II. Pledge to the Flag and Invocation Mr. Hay gave the invocation and Ms. Ross led the Pledge of Allegiance to the Flag III. Roll Call The above members were noted as present. Susan Harris, Finance Director, explained the board had previously discussed the impact of tax reform on the budget for the next fiscal year. She explained the TIF funds they received for this fiscal year totaled $9.5M. In the new budget year it would be $8.3M, a reduction of $1.2M. Staff would be looking to the board where to adjust or cut program allocations. Ms. Harris prefaced her comments by saying they reviewed what they expect TIF revenues to be in the next four years. The projections showed TIF funds without new construction at: .;' $8.3M for Fiscal Year 08/09 ../ $7.8M for Fiscal Year 09/10 ../ $7.9M for Fiscal Year 10/11 .;' $8.3M for Fiscal Year 11/12 .;' $8.7M for Fiscal Year 12/13 The figures with new construction would be different. It was noted there was no new construction for fiscal years 08/09 and 09/10, and most construction would occur between 2010 and 2013. The revenue generated in 2010 and 2011 from new Meeting Minutes Community Redevelopment Board Boynton Beach, Florida August7,200a construction would be $3.2M, in 2011/12 it would be $3.3M and in 2012/2013 it would be $3.4M, The numbers were anticipated to change, but the current numbers represented their best estimate. The CRA assessed valuation figures were lower than the City's valuations. Part of the rationale for the budget deficit pertained to the impact of not having the southern properties in the CRA District amounting to $492K, Additionally, doubling the homestead exemption for some individuals reduced the revenue as did a correction on the assessed valuations for all residential and condominium units in Palm Beach County. The Property Appraiser did not reassess commercial or industrial properties, which impacted the revenues in addition to the market decline. The CRA only had two revenue sources which were the City, about 60% and the County which provided about 40%. The $8.3M TIF revenue had some allocations in terms of debt service and other items. There were contracts with the City for projects and services. There was an existing contract with Burkhardt for maintenance for hardscapes and landscapes on Boynton Beach Boulevard for $110K The CRA also pays the City about $40K for monthly maintenance and needed repairs. The CRA wanted to reduce that cost in the next year to $50K because they felt they could make the repairs on an as needed basis and for less than what they pay Burkhardt. The CRA Police Program had a $1 OOK reduction. The City-wide events were allocated for $451K, which was the total cost of the events and the personnel costs. It was explained in prior years, the costs were shared with the City; however, last year the City discontinued funding those events. The Federal lobbyist fee was a shared expense with the City. The CRA, in light, of the economic environment, felt the service was not needed, Additionally, they felt the State lobbyist service should also be discontinued. An Interlocal Agreement with the City for Human Resource services was used very little. The cost was approximately $6K and it was used only for recruitment which was included in the agreement. It was suggested the commensurate cost for the service be added to the Benefits Interlocal Agreement and the Human Resources Agreement discontinued. There was further discussion about the Boynton Beach Boulevard Extension maintenance contract. The net proceeds of Bond 1 were $18M. The CRA paid $9M for the construction of the extension and the Promenade plus the purchase of some property known as the Hall Property which needed to be made a whole parcel to allow the construction. The debt service on that was $637K per year. When the project was constructed, the title to the property was turned over to the City and the CRA only pays for the maintenance and repair. 2 Meeting Minutes Community Redevelopment Board Boynton Beach, Florida Auguat7,2008 The 4th Street roadway improvements and the MLK corridor had no expense in this fiscal year, but would have an expense next fiscal year. The CRA had been carrying $1.8M for the 4th Street project in their fund balance since the Interlocal Agreement was issued, which was prior to the current Executive Director. The $1.3M for the MLK properties the City was anticipating payment on, would be made in the next year also. These were contractual obligations. Mr. Weiland noted the properties on MLK were acquired from the County as tax lien properties at a cost of about $60K. It was noted those funds were already included in the City Budget. The CRA had anticipated $492K in revenues from the Federal Highway Corridor properties being included in the CRA district. The Budget Highlights were reviewed as follows: The TIF revenues were reduced $1.2M, (11%) for the Marina. The CRA was moving forward with the marina construction through a county grant for its renovation. Some tenants would be moved and rental income would be decreased as a result of the construction. Overall there was a 12% reduction in revenue in the upcoming budget yei!lr. The CRA reduced its administrative expenses by $125K which included salaries, benefits and administrative expenses for all its departments. The reduction included a 4% COLA for staff only. These include membership fees and travel. Only travel for career benefit purposes would be covered. The account was reduced approximately $27K. Vice Chair Rodriguez pointed out the City eliminated 50 positions, Palm Beach County School Teachers will not receive any increases, nor will the Delray Beach CRA Staff. The total of the COLA was about $2pK. It was noted one position was terminated resulting in a reduction of about $40K. The City and other entities made sacrifices. It was noted the City allocated 2% for COLA and 1.5% for merit increases because of Union contracts. Ms. Bright explained they do not receive pensions and they based it on what H R advised them. There was discussion about the TIF revenues for 08/09. Ms. Harris explained two figures were represented because the eRA anticipated having to refund some TIF funds. Further discussion about the $20K for raises for eight employees was discussed. Ms. Harris explained it was 4% of whatever the current salary was and she distributed a listing of employee costs. Vice Chair Rodriguez noted the Delray Beach eRA budget was three times as large as this budget and their salary expenses, including the 3 Meeting Minutes Community Redevelopment Board Boynton Beach, Florida August 7, 2008 Executive Director, was nearly $50K less. The members wanted to revisit the raise issue, The CRA reduced their General Operating Expenses in the General Fund by 17%, These items having reduced budgets were legal fees, marina revenue, lobbying costs and professional service consultant fees. Overall the CRA would have reduced expenses in the general fund by 15%. Personnel costs, as a percent of the total general fund, were nearly 7.4%. Budget projections were reviewed. Total revenues and other funding sources are $14.2M for 08/09. Adjustments needed to be made in current projects and programs due to a loss of $1.6M. Ms. Harris explained if they were going to work on the projects, they needed to transfer the funds out of Other Funding Sources. She explained they also have obligations they have to meet. She reduced fixed operating expenses in the general fund by 2.5% and in the outgoing years, it was increased by 5%. She removed the operating expense for the marina. This left a balance of nearly $3.4M. Ms. Harris suggested the projects and programs be reviewed for adjustments. The members believed the 4th Street improvements would experience a lot of development, which did not happen. The CRA's expenditures were for landscape and beautification, which the plan currently did not cover rather, most of the work would be for utility improvements. Chair Taylor thought the project could be deferred, Additionally, he explained they agreed to pay for some design work, Mr. Weiland explained he received complaints from residents. The design and engineering plans were ready, but the City would not move forward with the project because of the 500 Ocean Project. Back in 2002 and 2003, it was a City project and he wondered why the CRA was paying for it. Kurt Bressner, City Manager, explained the project was ready to go out to bid and in 2006, the former CRA board entered into an agreement with the City for $1.8M, Ms. Brooks explained the eRA met with Paul Fleming for clarification of documents they received. Mr. Fleming indicated the cost of the project would be $4.7M with overages up to $5.2M. The CRA explained the costs would change. Mr. Bressner explained the cost the CRA was obligated to pay under the contract was $1.8M. In October of 2006, the CRA authorized a reduction in the scope of the contract to reduce streetlights, which would decrease the amount by $500K. The CRA approved that change, and now the contract price was $1.2M. The amount the CRA has to pay is still $1.8M, Mr, Bressner expressed the project should go forward because there are stormwater, utility and drainage improvements needed. The project was moving through the design phase and the final engineering was completed in February of 2008. Mr. Bressner did not mind making a recommendation to the City Commission that the CRA share of this project be reduced to $1.1 M based on the elimination of costs that were eliminated. The actual cost was $1,123,000, He suggested, because TIF revenues were lagging, to 4 Meeting Minutes Community Redevelopment Board Boynton Beach, Florida August 7, 2008 defer the CRA's expense to the City until their Fiscal Year 2011, which frees up $1.8M from the budget, and covered the $1.6M deficit. He emphasized the project must move forward because the water and sewer improvements must be made. Ms. Bright also explained the CRA's share of the cost was offset by a s,ubsidy from Commissioner McCarty in the amount of $300K earmarked for the project. Mr. Bressner explained he had not spoke with Mr. Fleming and would like to further review the matter and the grant. Ms. Bright explained the funds from Commissioner McCarty were from Gas Tax monies and was closed out. Originally the project scope presented to the board was from 4th Street from Ocean to 12th Street. The project currently extended to Boynton Isles. Mr. Bressner explained the I nte rloca I Agreement in 2006 allocated $250K to roadway and service improvements. The rest of the CRA's share was for stormwater and irrigation $500K, water mains $5K, power poles $200K and the street lighting $536K. the street lighting component of the agreement was removed. The agreement had a fairly minimal amount that was approved by the CRA and City Commission for landscaping. It is a project the CRA had authorized the $1.8M of work, and much of the work was necessary infrastructure work to support the development and redevelopment of the property. It was not just about landscaping and streetscaping. tt was about providing the infrastructure to support the redevelopment in the core area of the Central Business District. Mr. Bressner recommended, although no development was presently occurring, they put in the needed infrastructure and it was unwise to undersize the utilities for the area. The areas added for reuse was added to the City's tab and the CRA's responsibility remained the same as speCified in the contract. The members discussed Boynton Isles was added to the project under the City's CIP budget and the City's water reuse program also occurring along Federal Highway. The CRA budget projections showed a shortfall in 2011. It would not be known if deferring the cost to 2011 was beneficial until they conducted an analysis of the MLK Boulevard and whether they went forward with a Master Developers Agreement with Auburn Group. Phase I would be completed approximately 2011 and 2012 and the upfront funds in the second phase were $6M. Ms. Bright thought if the CRA were in a position to bond in 2011, they could budget the remainder and they would allocate the $800K balance and the City agreed to accept the $300K gas tax fund grant this year. The members discussed the CRA office. Currently the CRA rented the space and could get a mortgage in the future. That mortgage amount was removed. The Homeowners Assistance Program was reviewed. The members moved $200K from the budget. Special Events were reviewed. The events and associated budgets were: 5 Meeting Minutes Community Redevelopment Board Boynton Beach, Florida August 7, 2008 .,/ The Holiday Extravaganza which was $170K and included the holiday parade, the tree lighting and the concert. .,/ The Boat Parade was about $5K. .,/ The Fourth of July event was $75K including the fireworks and the barge. There was brief discussion if the CRA would receive a credit from the vendor. Ms, Bright explained the board direction was to have a better event next year, .,/ Oceanfront Park Concerts - $1,5K (five concerts at $3K) which the CRA was trying to get underwritten because the location was outside of the CRA district. .,/ The main concert in Heritage Fest was eliminated saving $5K .,/ All the events at the Sims Center with the Exception of Family Day were eliminated. .,/ The Hispanic Chamber of Commerce seed money for a new event, a Cuban Art Show was $15K and was eliminated. Mr. Weiland preferred to see as many events as possible be underwritten and the balance split with the City. He explained they were City-wide events and wanted to see the event costs split with the City. Vice Chair Rodriguez disagreed and preferred to see those funds used towards housing. He explained comments will be made that jobs were eliminated, but the City has a parade. Mr. Weiland felt they could not cut the entire event budget. The Community Caring Center had requested support in the amount of $200K which was not addressed. There was discussion about moving funds for 4th Street, but it was noted next year's budget would be worse. Ms. Bright explained if the board was committed to the MLK project, they would have a bigger deficit. Ms. Adelsperger noted events generate redevelopment. It draws residents to an area. Ms. Bright requested the 4th Street project be completed by the spring of 2009 and the City could cover the CRAs portion of the cost until 2011. If nothing was encumbered for next year, the CRA would not be able to meet their obligations to Auburn, unless Auburn would consider deferring the project for another year, Tom Hinners, Auburn Group, explained whether they commence construction or not was contingent on the progress of the rezoning. It could move the initial phase back one year. The financial markets would be better, The company was acquiring parcels now but would need assurances the funding they needed would be there. The land the City owned was not needed by Auburn until he received his funding from the State, and they would need an agreement. If the first phase was moved, back a year, the CRA would be buying the land and holding it until they received their tax credits. It could be deferred because the developer would not need the land for 18 to 24 months, 6 Meeting Minutes Community Redevelopment Board Boynton Beach, Florida August 7, 2008 Mr. Bressner explained when the issue was discussed, the $1.3M was based on an estimate of current market value. He was surprised when he reviewed the proposed eRA budget that they would get paid $65K. It was in contrast to the policy recommendation of the board in May. Staff keeps coming back to this point. The City based their budget on assurances given to the City, that the funds would be available. The Professional Services budget was discussed. The marina redesign was $2M for construction. The project was at the conceptual level, not construction drawings, which were much more money. Staff reduced the funds from $900K to $500K, because they did not anticipate any large projects. It was unknown if they would need to hire an architect or engineer. Vice Chair Rodriguez suggested further reductions down to $300K. Ms. Bright noted the Southern Trolley Route and police would have cuts. The Police are not in the downtown Master Plan until 2013. The agreement with the Police will be changed because they are not allowed to purchase vehicles or bike equipment and their budget included another vehicle. There were many items up for grabs. Vice Chair Rodriguez was interested in seeing the rationale behind the numbers. Discussion followed about deferring the 4th ,Street costs; however, Vice Mayor Rodrigeuz was not in favor of doing so and believed the economic climate would continue to worsen next year. The trolley service was considered for further reductions. There were 383 riders per day in the n'orthern route. Ms. Bright suggested eliminating $15K for events, the seed money for a Cuban Art Show and Professional Services would be reduced to $300K. Mr. Bressner explained until he saw the terms of the grant for 4th Street and whether it required the scope of the project be changed and additional costs incurred there would be no savings. He also indicated if it required the City to add components to the project that were not currently in the project, they should not appty those dollars. After discussion, it was decided the CRA would pay the $1,123,394 for the 4th Street project and $1.3M for land on MLK this year. The other areas with cost adjustments were finalized as follows: >- Eliminate the 211 East Ocean expenses of $750K >- Removed S200K from the Homebuyers Assistance Program >- Eliminate the requested support items for $480K (purchase Community Caring Center Land on 4th Street, Community Caring Center Building purchase, the Museum of Lifestyle and Fashion History Purchase of Land and the Green Market. ~ Professional Services budget reduced by $200K 7 Meeting Minutes Community Redevelopment Board Boynton Beach, Florida August 7',2008. ~ Eliminate $15K from Special Events for the Cuban Art Show Ms. Bright explained the CRA is not legally required to have a second budget hearing, and the regular CRA has been moved to September 2,2008 after the City Commission meeting. She would like to bring back the balanced budget at that time. Ms. Harris explained she would make the changes to the budget for the general fund and project fund. She would redistribute the revised budget to the members and call to ensure they had no issues. There was board consensus to allow the staff increases to remain. Mr. Bressner inquired about the disposition of the Old High School if it would remain in the City or the CRA. It was explained that item was contained in the general fund and the item would be addressed in October. There was a question on the travel line item costs; however, the number was not available. Ms. Harris would email the information to Vice Mayor Rodriguez. Ms. Harris explained this fiscal year she attended the financial software annual conference training session and the Florida Government Finance Officers Association and the Government Finance Officers Association because they were in Florida. She would only attend one conference going forward for professional purposes, as would the other departments. Ms. Bright also pointed out there were no discretionary funds for the board this upcoming year. Adiournment There being no further business to discuss, the meeting adjourned at 7:35 p.m. ,'jJf;ft,k~/! tilt} (lJ..~, ,\)Ji/ Catherine Cherry , Recording Secretary 080708 8 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 CITY OF BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY BUDGET WORKSHOP TRANSCRIPT OF EXCERPT OF PROCEEDINGS 7 City Commission Chambers 100 E. Boynton Beach Boulevard Boynton Beach, Florida 33435 Thursday, August 7, 2008 6:00 p.m. BEFORE: MAYOR JERRY TAYLOR, Chair JOSE RODRIGUEZ, Vice Chair WOODROW HAY, Commissioner MARLENE ROSS, Commissioner RON WEILAND, Commissioner ALSO PRESENT: SUSAN HARRIS, Finance Director LISA A. BRIGHT, Executive Director JAMES CHEROF, ESQ., Board Attorney CourtReporterNet.com (800) 960-1861 1 Boynton Beach eRA, '~I ,t:."uqust 2 Now, "'lIlac. do '~le '-1=)1.1 r MS. HARRIS: 3 expenses to reduce that? Well. 30 I:ar 4 we've made an eleven percent redu=tion in 5 administrative expenses, 125,000 dollars. 6 That is just salaries, benefits and what 7 it costs to run departments within the 8 Even though there's a 125,000 eRA. 9 dollar reduction, that number of almosc 10 million-one in the next fiscal year 11 includes a four percent cost-of-living 12 increase for the staff only; not the 13 executive director, just the staff, 14 MR. RODRIGUEZ: I'm sorry, dio you 15 say renting apartments? You said 16 MS. HARRIS: No. 17 MR. RODRIGUEZ: When you said 18 HARRIS: Okay, .; ~ ....... 1_ one let me say MS. 19 more time. I'm sorry. 20 MR. RODRIGUEZ: The 125.000 dollars, 21 you laid out what that was, and I thought 22 you said something about rentals, 23 apartment rentals. 24 MS. HARRIS: No. 25 MR. RODRIGUEZ: Okay. CourtReporterNetcom (800) 960-1861 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach eRA - August 7, 2008 MS. HARRIS: It includes all the administrative expenses to run the departments. MR. RODRIGUEZ: Oh, run the departments, okay. MS. HARRIS: Right. Salary-- MR. RODRIGUEZ: Not rent the departments? MS. HARRIS: No. Salaries, benefits and the overhead, the things like membership fees, the travel. And, by the way, we've reduced travel to bare minimum for next year. It's only going to be for career development purposes. MR. RODRIGUEZ: What's the total travel budget? that? Are we going to get to MS. HARRIS: I will have to answer you that separately on that. I have it by department. I'd have to add it up. MR. HAY: You're going to talk about -- MS. HARRIS: But I think we've reduced it by 27,000 dollars, I want to CourtReporterNet.com (800) 960-1861 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach CRA - August l '3 say, off the top of my head, cu"::. have to let you know. MR. RODRIGUEZ: We're going to get into salaries and all that stuff and more ~:Jould details later? MS. HARRIS: Not necessarily, so you can ask the question now, 'cause presented the general fund on a on a line item basis, not all the details, so MR. RODRIGUEZ: Well, you mentioned there was a four percent cost-at-living just increase MS. HARRIS: Correct. MR. RODRIGUEZ: included In the administrative expenses MS. MR. 1.06402. MS. MR. HARRIS: Yes. RODRIGUEZ: in the budget at HARRIS: Correct. RODRIGUEZ: And I guess I'm 3. little I'd like to talk about that 3. little because, as you guys know, the city laid off approximately fifty people. CourtReporterNet.com (800) 960-1861 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach CRA - August 7, 2008 Palm Beach County school teachers are not getting increases this year. Delray Beach eRA staff is not getting increases this year. So we should maybe consider that as a what's the cost of that total, do we know? MS. HARRIS: Yes, I do. That's 20,000 dollars -- MR. RODRIGUEZ: MS. HARRIS: Twenty thousand. for everyone, for the next fiscal year. MR. RODRIGUEZ: So MR. TAYLOR: Wait, who said you said -- who laid off -- we didn't layoff anybody. You think that we laid off fifty people? MR. RODRIGUEZ: Okay, one at a time, please. We needed the MALE SPEAKER: positions vacant. MR. RODRIGUEZ: fifty positions. MR. WEILAND: anybody off. We eliminated almost But we didn't lay CourtReporterNet.com (800) 960-1861 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach eRA - August :J ~ MR. RODRIGUEZ: No, I understancl that, but we eliminated fifty positions to reduce operating expenses. Palm Beach County school teachers are not getting increases, and the Delray CRA is proposing that they get no increases next year. MS. HARRIS: This line item also includes position. we did eliminate one MR. MS. TAYLOR: HARRIS: Right. We didn't eliminate from our organization chart but we terminated the position earlier this year, and that was about I think the salary cost on that was 35,000; with benefits, it was over 40,000. So that's out of this budget also. me if rim MS. BRIGHT: Correct thought in the laid off about city's budget four employees wrong. I they only last year but they vacated excuse me, empty positions were taken off the books. MR. TAYLOR: That's right. That's CourtReporterNet.com (800) 960-1861 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach CRA - August 7, 2008 correct. MS. BRIGHT: So you're saying the empty positions are not going to be filled? MR. TAYLOR: That's right. That's correct. MS. BRIGHT: And then I think actually that only, like, three employees were actually laid off last year, is that correct? MR. TAYLOR: That's correct. MR. RODRIGUEZ: And we're talking about -- Ilm not talking about last year; I'm talking about moving forward. Close to fifty positions were eliminated so it would not be filled. MALE SPEAKER: MR. RODRIGUEZ: (Indiscernible) . I understand that. I'm just saying -- I'm just laying out the sacrifices that the city has made, sacrifices that Palm Beach County School Board has made. And what I'm hearing is a proposed budget for the city of Delray CRA staff is that they're going to be CourtReporterNet.com (800) 960-1861 1 Boynton Beach eRA - August i , , r~;3 2 flat also next year, no increases fJr 3 So I'm just thinking in line with them. 4 everybody else. 5 MS. BRIGHT: It's certainly the will 6 of the board if you don't want to provide 7 a four percent increase. It was just a 8 cost-of-living increase. We're only a 9 staff of eight, and you are totally 10 That's why we're here tonight, correct. 11 so 12 MR. RODRIGUEZ: I understand. I 'm 13 just 14 MS. HARRIS: Also, I believe in the 15 city budget there is a total of three and 16 a half percent 17 MALE SPEAKER: The city 18 MS. HARRIS: -- I believe two 19 percent for -- and some sort of I 'm 20 not sure if it's cost of living. ,;nd 21 then a percent and a half merit 22 increase 23 Merit. MR. TAYLOR: 24 MS. HARRIS: is only half a year 25 MR. RODRIGUEZ: Yeah. The city -- CourtReporterNet.com (800) 960-1861 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach CRA - August 7, 2008 unlike our budget, the city's budget primarily is contractual with the unions. So that's the difference. MR. TAYLOR: Let me ask a question. MS. BRIGHT: We also don't have pensions. I'm kind of confused. We base our -- we based our four percent on what the city was doing across the board, am I not correct? MS. MS. HARRIS: BRIGHT: Yes. You spoke to city staff. So if we're improper in not comparing ourselves to the city, then I mean, we didn't do analysis with any CRAs, so I apologize to the board. We didn't call the Delray CRA or West Palm CRA. We just based it upon what the HR department had told us was going to be happening with the city. So I -- we just didn't follow that direction. MR. RODRIGUEZ: Well, I mean, the bottom line is we've got a decrease in revenue; we all know that, right? Right. MS. BRIGHT: Absolutely. CourtReporterNet.com (800) 960-1861 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach eRA - Augus~ :.:< MS. HARRIS: Yes. MR. RODRIGUEZ: So IrIhat --- usually when you have a decrease in revenue in any business, and increases you tighten are part of up your cost, your cos~, And so just up for discussion. Just ~hought I'd bring it up because I think we all need to do our share. MR. TAYLOR: I have a question. On the chart we're looking at MS. MR. HARRIS: TAYLOR: Yes. -- which shows fiscal '08/'09, you're showing revenues or 9,587,500? MS. MR. HARRIS: TAYLOR: Urn-hum. And -- but on the firsc. chart we show TIF withou~ new constructions at 8,315,313. MS. HARRIS: Right. That's the exact calculation. I rounded it down because I anticipate having to refund some TIF, hopefully at a much smaller level than this current fiscal year. The amount of TIF that we receive is based on CourtReporterNet.com (800) 960-1861 11 1 2 3 4 5 6 7 8 9 10 11 12 ,13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach eRA - August 7, 2008 the final estimate in the end of June/beginning of July. MR. TAYLOR: Okay. MS. HARRIS: But once the property appraiser certifies the tax rolls and closes out the tax roll for that particular year -- MR. TAYLOR: Um-hum. MS. HARRI S : -- they make an adjustment in the assessed valuations. And then if the county owes us money or the city owes us money, they pay it. And if we owe the county or city money -- MR. TAYLOR: Oh, I -- never mind. I see it now. We added the marina revenue. That's what brought it up, the number. MS. HARRIS: Yes. MR. TAYLOR: Okay. Igotcha now. I'm okay. MS. HARRIS: Okay. MR. RODRIGUEZ: Susan, I I m sorry. You said that the total impact is 20,000 dollars, or the four percent is 20,000 per employee? CourtReporterNet.com (800) 960-1861 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach eRA - August ))8 MS. HARRIS: Yes. Not per employee 0 MR. RODRIGUEZ: Twenty thousand total? Total. Twenty thousand MS. HARRIS: total. MR. RODRIGUEZ: How do you get to 20,000? MS. HARRIS: It's four and a half it's four percent of whatever the current salary is. MR. RODRIGUEZ: Let's assume half a million dollars in salary. MS. HARRIS: Oh, I'll tell you in a second. I have that number. MR. RODRIGUEZ: And excluding the executive director, right? MR. MS. MS. TAYLOR: HARRIS: BRIGHT: Right. Correct. Right. There's zero for the executive director. MR. RODRIGUEZ: 700,OOO? MS. HARRIS: So it's, like, chart out because 1'm going to pass this it has those details on CourtReporterNet.com (800) 960-1861 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach eRA - August 7, 2008 it Okay. Thanks. RODRIGUEZ: HARRIS: MR. MS. so you can look at it. (Pause) MS. HARRIS: If I did my math correctly, it does amount to 20,000 dollars for the entire staff, excluding the executive director~ MR. RODRIGUEZ: Twenty-five I have, unless I did my math wrong. (Pause) MR. RODRIGUEZ: That right at the bottom there, right? five That's twenty- MS. HARRIS: Yes. MR. RODRIGUEZ: right? MS. HARRIS: Yes, you'll see that including all the benefits, the employer taxes, medical, dental and the 4570401 plan. That's a total of 871,000 dollars for the current positions in this fiscal year. And if we add the four percent cost-of-living increase, the total would CourtReporterNet.com (800) 960-1861 il 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Boynton Beach CRA - be 891,000. MR. TAYLOR: August ~7 .2 rJ 0 b That's 20,000 there added, makes it -- MR. RODRIGUEZ: So I'm just go~ng to bring this up because I'm compelled to, and I did some comparison with the Delray just 'cause I felt it was important enough that I got some comparison data from another CRA agency. The Delray eRA's budget this year is going to be almost twenty three million dollars, three times as large as our budget, and yet their salaries, including the executive director's salaries, benefits 16 is going to be 842,000 dollars. 30 17 18 19 20 21 22 23 24 25 they're doing three times the budget amount with less cost from a resource standpoint. MS. BRIGHT: Four hundred and thirty-seven acres versus sixteen hundred and fifty acres. MR. RODRIGUEZ: I understand that, but they've got twenty-three million dollars. Their budget is bigger. CourtReporterNet.com (800) 960-1861 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 '19 20 21 22 23 24 25 Boynton Beach CRA - August 7, 2008 MS. HARRIS: They may also have consultants do a lot of the work that we do in-house. I don't know that for a fact, but that may be the case. I'm not sure. MS. BRIGHT: Maybe it would make some -- since we didn't do evaluation, would you like us to evaluate -- I mean, if the board decides no increase tonight, then that'd be foolish, but we only based our recommendation upon what the city was doing for the three and a half percent. And so if that's not desirous of the board, we can certainly call all the CRAs or go back to the Delray CRA and do some analysis and come back, 'cause this is just a workshop, so it's the direction of the board. MR. RODRIGUEZ: I don't know how the rest of the staff members feel about it. MALE SPEAKER: I mean, we're talking 20,000 dollars here. Wouldn't mind MR. RODRIGUEZ: Well, the only reason we started talking about it, CourtReporterNet.com (800) 960-1861 h 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach eRA - August , , "" {] ,3 'cause we weren't going to come back to it. MALE SPEAKER: Well, we can come back. MR. TAYLOR: We can come back to it. MR. RODRIGUEZ: No. I'm just saying during this presentation there wasn't going to be anymore. MALE SPEAKER: We can come back MR. RODRIGUEZ: Yeah. MALE SPEAKER: -- during this presentation. MR. TAYLOR: We can come back to it. Let's go ahead and finish, see where the whole picture is here and then we'll come back to it. MS. HARRIS: Okay. The next line, we've reduced our general operating expenses and our general fund by seventeen percent, over 500,000 dollars. That 500,000 dollar savings is derived primarily from reduction in legal fees that we're anticipating in the upcoming budget year, reduction in marina revenue, CourtReporterNet.com (800) 960-1861 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach CRA - August 7, 2008 reduction in not paying any lobbying costs, either for federal lobbyists or Tallahassee lobbyists, and reduction in professional services, consulting fees in the general fund by 190,000 dollars. So those are the components of the reduction of over 550,000 dollars, for a seventeen percent expense reduction. (Indiscernible) MALE SPEAKER: MS. HARRIS: Correct. Overall in the general fund, if the budget stays intact for the general fund, we will have reduced expenses by fifteen percent. And I have personnel costs as a percent of the total general fund because we do run a very lean operation. We do an awful lot of work with very few people. And that cost, that all-in-cost salaries and benefits, was 7.4 percent this fiscal year, and it'll drop down to 6.6 in the next fiscal year primarily because we've reduced the staff position. Yes? MR. WEILAND: Give me one second. CourtReporterNet.com (800) 960-1861 , ;~ Boynton Beach eRA - August I, 2()08 Our total -- as of right now, our total expenditure for staff, with benefits, lS 871, correct? MS. HARRIS: Correct. MR. WEILAND: What would that figure be without any benefit, do you know that? 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MS. HARRIS: MR. TAYLOR: all that. MS. HARRIS: dollars --- MR. MS. TAYLOR: HARRIS: Without any benefits? We would have to reduce It would be 640,000 Six fifty. in this fiscal year Next fiscal year, if you approve a four percent raise, it will be 661,000 dollars. MR. WEILAND: Okay, I got it I see it here. Benefits or costs at about 230. MS. HARRIS: percent. MR. MS. TAYLOR: HARRIS: Yes, about cwenty-six Okay, Okay. next? The next. chartl our budget projection chart, is where we're going to need your assistance on iG CourtReporterNet.com (800) 960-1861 .~ J v 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach eRA - August 7, 2008 just a few minutes. The top tier shows all the revenues that we expect for the next five fiscal years. (Portion of audio skipped per client's request.) MS. BRIGHT: Okay, and one thing I didn't get clear from the board, we need to talk about the increases for the staff. If that's not the direction of the board, we want to take that out as well. So I'd like to know that. MR. WEILAND: with it. MR. TAYLOR: MR. WEILAND: MALE SPEAKER: MR. TAYLOR: MS. BRIGHT: I don't have a problem I don't either. I'm keeping it in. Keeping it in. Keep it in. Okay, so the staff will get a cost-of-living increase -- MALE SPEAKER: We're talking MS. BRIGHT: -- of four percent, okay. MALE SPEAKER: twenty thousand. MR. TAYLOR: Yes? You want CourtReporterNet.com (800) 960-1861 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida August 12, 2008 Ms. Johnson requested the CRA create ways to assist the Community Caring Center that did not necessarily require funding. Examples could be a website link, free advertising on the trolley for a time, and other creative ways to market them and the Green Market. In referring to the CRA budget, Ms. Johnson made reference to a property purchase and the $200K set aside to solve their issues. She suggested if the CRA assisted the Woman's Circle, that might put them in a position to negotiate on a portion of the property they were interested in purchasing. Ms. Johnson said this would solve their problem. Chair Taylor explained in reference to the trolley, the southern route was successful, but because of cost, some of the routes had to be scaled back. They reviewed the item very carefully. Mack McCray, 806 NW 4th Street, suggested identifying which CDC was referred to in reference to Ms. Jenkins, since there was more than one CDC within the City. It was noted the CDC in question was the Boynton Beach Faith Based CDC. He also advised if free advertising would be given on the trolley, he hoped there was something in place so that anyone who had a business in Boynton would also receive free advertising. There being no further comments, Chair Taylor closed the public hearing. X. Public Hearing: None (End transcription by C Cherry at 6:51 p.m.) XI. Old Business A-1. eRA Board Policy Direction for FY 08-09 Budget (Janet Prainito begins transcription at 6:51 p.m.) At the CRA budget workshop, the board made recommendations to staff to implement a balanced budget. They brought forward a list of items with only one item missing which was the proposal and request for $1.8 million to purchase the land for the Museum of Lifestyle and Fashion History. The board directed staff to do a boundary amendment, but that funding opportunity had never been discussed. Susan Harris, Finance Director, reviewed the projections based on the differential between what happened in the City as a whole and the CRA assessed valuations. This was elaborated into two different scenarios; one at the suggestion of the City Manager in an e-mail to Ms. Bright where he suggested a 6% reduction in assessments for next year. When Vice Chair Rodriguez suggested the reductions could be 12% to 15%, a second scenario was prepared. . Scenario #1 shows a reduction in assessed valuations in 2009/10 of 6%. In terms of l1F, that computes to $7.6 million in revenue. When looking at the new construction anticipated coming on-board in 2010/11, more than $3 million is 4 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida . August 12, 2008 anticipated. In that fiscal year, the TIF will be over $10 million. That would put the CRA at the same level as in this current fiscal year of $5.9 million. . Scenario #2 shows a drop in assessed valuations in 2009/10 of 12% which would result in a l1F of $6.9 million without new construction. When the new construction is added, that figure increases to $9.8 million in fiscal year 2010/11. In spite of this great reduction in assessed valuations, with new construction coming on-board, the l1F will move up to current levels. Another chart prepared by Ms. Harris elaborated on the two scenarios discussed; however, it showed what would occur if there was a 6% loss in valuations in fiscal year 2009/10. The changes discussed at the budget workshop were programmed in and the budget is balanced for this coming fiscal year and instead of a $6 million deficit for 2009/10, there is a deficit of approximately $2 million. In budget Scenario #2, which covers a 12% loss in valuations, there will be a $2.5 million deficit. Ms. Harris will be in touch with the Property Appraiser to closely monitor this situation and will return to the board with revised numbers as information becomes available. Ms. Harris referred to a historical chart beginning with fiscal year 2005/06 through the upcoming fiscal year to show the cost of different projects related to City projects and services. In 2005/06, when the Boynton Beach Boulevard Extension and Promenade were built, there were police services, events and lobbying costs that amounted to $10 million. The l1F funds for that year were slightly above $6 million excluding any of the Bond #1 proceeds. This amounted to 20% of l1F. In the next fiscal year, that figure increased. In another chart, the $4 million in the proposed fiscal year is 48% of the $8.4 million in TIF. Ms. Bright reported the responsibility from the staff level was to program the recommendations the board made during the workshop and bring back to the board a balanced budget at the September 2' 2008 meeting. Chair Taylor expressed the core mission of the CRA was redevelopment and elimination of blight in the community. The #1 project on the table is the Heart of Boynton. Redevelopment in the downtown CRA produces the money for such redevelopment. Chair Taylor discussed his items of concern as follows: . SE 4th Street Utility Streetscape - Three years ago, the board made an agreement with the City to share in the cost of that project because the Arches development was anticipated along with other development. Those were good reasons to participate. However, Chair Taylor now believes this is not a CRA project; rather, a City utility project. The design has been changed and much of the landscaping has been removed. The CRA should not be involved since the development did not take place and probably will not take place for two to three years. The CRA has $300,000 from the County that was set aside for that project. The money should be given to the City. When development takes place, the developers can provide the upgrades, 5 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida August 12, 2008 If the board did not agree with that proposal, Chair Taylor suggested deferring the project to 2010 as long as the CRA pays its portion at that time. By that time, the CRA could probably do a bond issue that would allow additional dollars for this project. . Chair Taylor expressed concern about the $1.3 million to purchase the City's property in the Heart of Boynton. The City paid $60,000 for the property and he is opposed to paying so much more money for that property. If the CRA does not buy the property, the City could negotiate with the developer. This would eliminate the burden of the $1.3 million expense on the CRA. The CRA does not need that property until approximately October 2010. At that time, the CRA would be in a better financial position regarding TIF or bonding would be a possibility. Further, a bond would be necessary to secure the $22 million needed for the Heart of Boynton. Vice Chair Rodriguez felt the board did not do a thorough review during the budget workshop since a great deal of time was spent "squeezing" $1.6 million from projects while little time was spent on operating costs. Vice Chair Rodriguez believes more time should be spent reviewing the operating costs in an effort to find dollars. The budget indicates $3.8 million in operating costs. He questioned why it is costing $3.8 million to manage the CRA. The board did not spend any time looking at those items. Chair Taylor reported that he spent a great deal of time studying the budget and noted that a lot of money was cut from training and transportation. One employee position was eliminated. Chair Taylor feels the staff is very qualified and they do a great deal in-house where other CRAs take those projects outside to private industry. Vice Chair Rodriguez agreed the staff is great; however, he felt a responsibility to look at every expense. Vice Chair Rodriguez pointed out that the budget in his possession did not include the details of the line items for the operating expenses. Chair Taylor referred to backup received previously that showed the decreases in operating expenses. Vice Chair Rodriguez pointed out there was an overall 11 % decrease which was $125,000 as compared to the $1.6 million decrease in projects. In addition, there is a contingency of $314,000. He questioned the need for that contingency funding. Ms. Bright explained there has been a contingency of $200,000 to $400,000. Staff deprograms over $200,000 in professional services. When Vice Chair Rodriguez visited the CRA Office, he was ill and he did not review the details of the budget. A question was brought up at the workshop related to the Delray CRA versus the Boynton Beach eRA. Ms. Bright explained that the Delray Beach TIF is $13.2 million this year. They have a staff of nine and their salaries are exactly the same as those at the Boynton Beach CRA. Ms. Bright offered to review the details of how the reductions were achieved. CRAs are not bound to have reserves. Every dollar can be programmed. The $314,000 can be reprogrammed back into something that was eliminated or into a new program. Ms. Bright pointed out that she reviewed the detail with three of the five board members. Vice Chair Rodriguez referred back to previous comments regarding squeezing dollars out of projects while $314,000 was not programmed. He reiterated that he would like to review the 6 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida August 12,2008 details of the operating budget. Commissioner Hay requested the opportunity to also go through the details. Ms. Harris explained that she did not have the details of the operating budget with her; however, she offered to provide those details. In response to a question from Vice Chair Rodriguez, Ms. Harris had the travel budget with her. Ms. Harris explained that the budget workshop this year was somewhat different from the past Staff was looking for higher level decisions from the board members because of the large deficit. Staff needed guidance since millions of dollars were involved. While there are millions of dollars in the operating budget, that budget also includes some marina expenses. In the $3.8 million of operating expenses, there is $1 million for department overhead that includes salaries and benefits. The remainder of the items included insurance items ($115,000), professional services (reduced by more than $460,000) which included audit fees, bond compliance fees, and arbitrage rebate fees. A marina audit will have to be performed this year for the first time. Additionally, an audit of the trust fund is also required by the Auditor General. Economic development and small business development fees are also included. In response to Vice Chair Rodriguez, Ms. Bright explained that as an outcome of the American Assembly, there was discussion about an economic development person. Although the City has not made a decision about this position, the job has always been programmed in the CRA budget. When further questioned by Vice Chair Rodriguez, Ms. Bright explained the position is in the CRA HR plan. An economic development plan was developed for the CRA to address small business development issues. A person was hired to create that plan. This plan is not finalized from staff at this time, but it will be brought before the board. When Vice Chair Rodriguez inquired about the cost associated with that project, Ms. Bright recalled the figure to be approximately $40,000 of which $30,000 would be carried over to next year to complete that project. Mr. Hay requested that Ms. Harris break down the details so that he is aware of each of the costs in each line item. Ms. Harris added that there are marketing fees contained under professional services. The CRA pays a fee to the City through an inter/ocal agreement for information technOlogy services ($20,000). Contingency is budgeted for unforeseen expenses. This year, the development line item was overspent because $1.3 million was not available for the purchase of the licenses. The development line had been programmed for $1 mtllion for land acquisition and property was purchased for $200,000 along with the licenses for $1.3. Contingency covers those types of unanticipated expenses. Chair Taylor agreed CRA staff should provide the line item detail information to the individuals who wished to have it and he was willing to discuss it at the next meeting. Mr. Hay requested an opportunity to meet one-on-one with CRA staff. Vice Chair Rodriguez requested the information be provided to him for his review and then he would meet one-on-one with CRA staff. During the next meeting, concerns would be discussed. Mark Karageorge expressed his opinion that economic development cures blight, 7 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida August 12, 2008 Mack McCray, 806 NW 4th Street, asked how much money was owed in bonds because that is a burden on the City. He thanked the board members who met with the CRA individually for doing their jobs. Chair Taylor corrected Mr. McCray's statement about bonding since it is not a liability on the City. Rather, it is a liability on the CRA since they have to come up with the debt service. Vice Chair Rodriguez wished to correct the record to reflect the fact that he briefly met with Ms. Bright and Ms. Brooks. Unfortunately, he assumed the details would be in the book that was provided and they were not included. He recommended that the details be included in the books next year. With regard to the NE 4th Street Streetscape, Mr. Weiland felt that project could have been done in 2002. The plans were ready, but he was told at that time nothing was going through because of the anticipated Arches development and there was no desire to tear up the street twice. At this time, Mr. Weiland does support the CRA spending money on that project. Mr. Weiland recalled individual appraisals were going to be sought to make sure the City's appraisals matched the CRA's appraisals. The CPA agreed to pay the appraised value; however, had he known the City paid $60,000 for those properties; he would not have made that agreement. The City and CRA should work together to transfer the property to the CRA at a much lower price. If the City does not want to do that, the City can deal with the developer and the money could be deferred. When the discussion of bonding arose, Attorney Cherof advised that a bond would require a vote of the CRA. It does not go before the citizens for a vote. Vice Chair Rodriguez confirmed with Ms. Bright that the City assumes liability if the CRA defaults. Attorney Cherof reported that at this time, no one is going out to bond until the Strand case is decided. When the Supreme Court rules, there will be a better understanding of what can or cannot be bonded. Further, Chair Taylor pointed out that the CRA would not go out for a bond if it were not able to pay the debt service. Ms. Bright reminded the members that the financial advisors suggested the CRA might be in a position to consider what the City had done with its February 2008 Utility Tax Bond. The lobbyists indicated that Strand is taking so long because two Supreme Court justices are retiring by September 30th and they have committed to the Governor that they will make a ruling on the Strand case and what opportunities will be available for special taxing districts. Chair Taylor confirmed with Ms. Bright that the CRA still has substantial bonding capacity at this time. Mr. Hay agreed to delay NE 4th Street Streetscape project. He wanted to ensure that the $1.3 million for MLK did not get lost in the shuffle, but believed the CRA would be in a better position in 2010 to move forward with the Auburn proposal. Ms. Bright said Mr. Bressner made it clear that the City has the money but the board would need to make sure the $300,000 grant goes to the City. With regard to MLK, Mr. Hinners confirmed that November 2010 would work for everyone. The money could be 8 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida August 12,2008 programmed to a simultaneous closing with the City, but that would be determined later in the meeting. Ms. Harris explained that if the $300,000 grant is received in November or December and it is given immediately to the City, that dollar figure would be reduced from the $1.1 million and that difference is what would be delayed. Vice Chair Rodriguez recalled Mr. Bressner saying that if the CRA did not share in this, the City would still have to do this project and that would present challenges for the City Commission from a budgetary standpoint at this particular item. The City is counting on that money. Ms. Bright said she confirmed with Mr. Bressner that he could float the CRA for the three years through the Utility Tax Bond until the CRA saw the first increase in the TIF if the CRA board wanted to keep the project with the current drawings (the way it is currently redesigned). Chair Taylor agreed with Ms. Bright's statement. Chair Taylor reiterated for the edification of the members that the CRA would give the $300,000 to the City as soon as it was received. That would leave $823,394 that would be delayed until October of 2010. When Vice Chair Rodriguez questioned what would be done with the $823,394 in the budget, Chair Taylor said it might depend on what was done with the $1.3 million. The $823,394 might help offset that figure. Vice Chair Rodriguez questioned whether the board would have to go back through the budget t.o reallocate funds. Ms. Bright advised the marina is programmed for next year. It is a 24-month project with a total cost of $5.9 million. The first $2 million is up front from the County which is being paid this year. The second phase would be $1.9 million. Depending on what Auburn tells the board during its presentation, the board may be able to encumber some money for them. Ms. Bright has been working with their staff and there are some possible opportunity purchases within the Phase I MLK corridor. The 4th and 5th Street projects and Ocean Breeze are other options. There are opportunities to reprogram the money into TIF-generating redevelopment projects. Mr. Weiland said if the two projects discussed earlier are deferred, he would like the money funneled into the Heart of Boynton. It could be split between Ocean Breeze and MLK so that those two projects continue to move forward. Vice Chair Rodriguez inquired if there is money pending for the MLK or Ocean Breeze projects. Ms. Bright said the MLK project had the expectation and needed payment of $1.9 million. If money is not encumbered to honor the commitment, there is no possible way to honor the financial commitment when the money is needed. The money was in the budget for 2009/10. It was due October of 2009. The TlF refunds do not come in until December of 2009; therefore, it was necessary to take money out of this budget for that obligation. The eRA has not signed a Master Development Agreement, but that issue would be considered by the board later in the meeting. Cito Berguirstain, Auburn Development, said if it were necessary to push the project off because of budget constraints, Auburn would be willing to deal with that budget reality. However, it certainly was not the best thing for the project and not in the best interest of 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 CITY OF BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY Ctz14 fbD MetnN b B-UD<3E"f H(jRKSHC~ TRANSCRIPT OF EXCERPT OF PROCEEDINGS City Commission Chambers 100 E. Boynton Beach Boulevard Boynton Beach, Florida 33435 Tuesday, August 12, 2008 6:30 p.m. BEFORE: MAYOR JERRY TAYLOR, Chair JOSE RODRIGUEZ, Vice Chair WOODROW HAY, Commissioner MARLENE ROSS, Commissioner RON WEILAND, Commissioner ALSO PRESENT: SUSAN HARRIS, Finance Director LISA A. BRIGHT, Executive Director JAMES CHEROF, ESQ., Board Attorney CourtReporterN et.com (800) 960-1861 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach CRA - August 12/ 20(lh MR. TAYLOP: Weill be in much better financial shape in October 2010 than we are today. MR. RODRIGUEZ: Can I just MR. TAYLOR: Sure. MR. RODRIGUEZ: That kind of Jumps into Yeah. Yeah, MR. TAYLOR: absolutely. MR. RODRIGUEZ: I felt like honestly, after the budget workshop that we had last week, I felt like we didn't do a thorough job, the board, myself personally. We spent a Jot of time squeezing out 1 . 6 million dollars from projects, and that's what we did. And we spent very little time on costs, on operating costs and what it costs to run the CRA. In fact, we spent maybe five minutes on whether we're going to get staff increases or not. And I feel that we need to do 2 better job of squeezing out money from cost and not projects. I mean, that's CourtReporterNet.com (800) 960-1861 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach CRA - August 12, 2008 projects is what CRA's in place for, and we've got -- according to my calculations, we got 3.8 million dollars in costs, in operating costs. We've got salaries. We've got span of control issues. We have two very qualified executive director and assistant executive director managing seven people, six-figure incomes. I think this board needs to look at that stuff. That's money to be going to projects. We need to look over these operating budgets for each department. Why are we spending X amount of dollars, up to 3.8 mill ion s , tor u nth e C RA, not for projects but to run and manage the CRA? We spent zero time in looking at those budget items. We spent time squeezing out project money because we were told we had 6.8 million dollars and that's all we had. But we spent no time at all going through departmental budgets, costs, span of control issues, none. And I feel like we should be doing that and then coming CourtReporterNet.com (800) 960-1861 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach CRA p"ugust 12, ;: U8 back to the projects and see what's left then. MR. TAYLOR: Well, to address that, I can I looked through it and T found that they cut a lot of money out f' C.L training, out of transportation; big money out of that. They did let go one employee was cut. And currently T , think that we have some of the most qualified people around available that work at our CRA1 and I think that you will find, if you really look intc what they do, that they do a lot of stuff In- house that is normally sent out, from other CRAs, that are sent out and paid for in the private industry to do. They're doing it in-house. MR. RODRIGUEZ: I'm not and I think we have a great staff and hope that they don't feel like this is an attack, but I have a responsibility to look at every piece of expense. And in merit, you looked at some of that stuff. ~ o. didn't have access to that Nobody gave J CourtReporterNet.com (800) 960-1861 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach CRA - August 12, 2008 me what you just referred to. I haven't had that information. In fact, if you look at this budget that was presented to us, I don't see the operating expenses in here MR. TAYLOR: Well-- MR. RODRIGUEZ: -- as a line item detail. MR. TAYLOR: Well, in the backup we got previously, there was -- they showed the decreases in different areas of that. It showed the decreases. And when I met with them and asked them what those decreases represent, they went over it with me one-on-one and showed me -- MR. MR. RODRIGUEZ: TAYLOR: There was -- where that was decreased to. MR. RODRIGUEZ: -- there was an overall eleven percent decrease in operating expenses; that's 125,000 dollars. There was a 1.6 million dollar decrease in project money. that's huge. So, to me, CourtReporterNet.com (800) 960-1861 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach eRA AUGust I;', 2C08 MS. BRIGHT: Mayor Taylor c Excuse me, but I MR. TAYLOR: All right. MR. RODRIGUEZ: The other item in here that I just as 1 was looking through this, there's a contingency here for 314,000 dollars. Why are we having a contingency for 314,000 dollars? MR. TAYLOR: Executive director, you'd like to answer? MS. BRIGHT: Well, that's kind of been our 200 to 400,000 dollar contingency. discussion. That's the whole We deprogrammed over 200 In professional services. And you are correct, Vice Chair Rodriguez, but, quite candidly, you were very ill the day you came in and you had to go to the doctor. We didn't get an opportunity to sit down. We have the detail. I think that what was brought up the other night was the question of the Delray CRA versus the Boynton CRA, and some of those facts and figures were not totally accurate that we CourtReporterNet.com (800) 960-1861 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach CRA - August 12, 2008 are -- their TIF is 13.2 million this year. They do have staff of nine. Their salary is exactly the same, 642,000, and ours are 640,000. So we are happy to sit down with you and go through the detail of how we derived the reductions of I believe it was eleven percent and thirteen percent. The contingency can be totally programmed, but it goes back to the city versus the CRA. CRAs are not bound to have reserves. We can program every dollar, if that's the board's wishes, of 314,000 back into something that we took away or a program that you'd like to see funded greater. That was the goal of the workshop; you are correct. So I don't think there's a right or wrong here. We are here to serve at the board. It was only yourself and one other board member that was not available to go through the detail. I did personally get to meet with three other CourtReporterNet.com (800) 960-1861 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach eRA August 12/ 20 8 board members to go through that discussion. So jf that 13 something we want to have happen, then weIll make it happen for you MR. RODRIGUEZ: And that's ano thank you for your response, but that's an example of where we did I thought we did a terrible job of going through this at the workshop because 314,000 dollars, we're talking -- we're just scraping up monies left and right from programs, and we've got 314,000 dollars sitting there. No one here said anything about a 314,000 dollar reserve sittina there, no one at the workshop. MS. BRIGHT: Quite candidly, Vice Chair Rodriguez, I was very unprepared, MR. RODRIGUEZ: So all I'm saying is I personally would like to go through the details of the operating expenses. And if the rest of the board would likE, that'd be great. If they don It, then I've said my piece. MR. TAYLOR: I've been through iL CourtReporterN et.com (800) 960-1861 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach CRA - August 12, 2008 with them one-on-one, and I'm satisfied. MR. HAY: I would like to go through it. MS. HARRIS: I don't have them tonight but I can speak to it, for the most part, and then I can send the detail out. MR. RODRIGUEZ: I still haven't -- Susan, I asked you for the travel budget. I haven't received that yet. MS. HARRIS: Yes, I have that. I have that with me. Just let me back up a second. The budget workshop this year was a little bit different. The other night we were looking -- last Thursday we were really looking for some higher level decisions from you because we had such a big deficit. So we needed some guidance on what -- we were talking about millions of dollars, and, yes, we do have millions of d 0,11 a r s in our operating budget, but that also includes some marina expenses. So if you back that out, I can talk to those numbers. CourtReporterN et.com (800) 960-1861 : :1 1 2 Boy n ton Be a c h eRA - Au g us t 12, 2 (j ,18 In that 3,8 million dollars l' operating expenses, there is a million dollars for departments I overhead; that's salaries, benefits and what's operating 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 in each individual budget, The rest or the items are insurance items; that's 115,000 dollars, We need those insurances. We have to insure our properties, our vacant lots, the marina, So that's an item that I've already spoken to the broker about, and that's probably what it's going to be for next year, barring maybe 5,000 dollars, Professional services, we dropped that budget down by over 460,000 dollars. Professional services includes, and I'll give you the detail on that also if you need that, but it includes our audit fees, it includes bond compliance fees and it includes arbor charge rebate fees These are things that we have to pay. that are ongoing. We'll also have to perform a marina first time, It year for the audit this CourtReporterNet.com (800) 960-1861 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach eRA - August 12, 2008 also includes an audit of our trust fund, which is separate from our audit of our financial statements; that's required by the auditor general. It includes economic development. It includes small business development fees, and that's -- MR. RODRIGUEZ: Describe to me the economic development. MS. BRIGHT: As an outcome of the steward event, I forget the name, the Boynton Assembly, there was discussion about economic development. I don't believe the city commission has made a determination of where and who might be able to afford an economic development staff person. The job has always been programmed in the eRA's budget. We have, I believe, four or five outstanding positions. Is that correct, Susan? MS. HARRIS: We have four outstanding positions. MS. BRIGHT: Four outstanding positions, much like the city who they're on our books whether -- CourtReporterNet.com (800) 960-1861 Boynton Beach rRA - Auaust 12, 200~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. RODRIGUEZ: How much is that, Susan, in this Jlne item? MS. BRIGHT: You mean the outstanding positions? MR. MS. MR. RODRIGUEZ: Yeah, BRIGHT: We don't RODRIGUEZ: Okay, include them. so she just said the economic development was in this line item. What is it then? plan. the plan. MS. BRIGHT: No. It's in our HR MR. RODRIGUEZ: Okay. She just this said economic development was ln full MS. BRIGHT: I'm trying to get to that, Vice Chair Rodriguez. MR. RODRIGUEZ: Just tell me that. All right, anything else? MS. HARRIS: I'd have to go back and give you the individual number for that, but MS. BRIGHT: We created an economic development plan for the CRA to address small business development issues. So we CourtReporterNet.com (800) 960-1861 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach CRA - August 12, 2008 hired a person to create that plan. So that's what she's saying is we didn't do it in-house. We didn't have enough staff to do it, so we've created a plan. It's not finalized from staff review. It will be coming before the board. So we spent some dollars out of professional services to hire someone to create that plan. MR. RODRIGUEZ: Do we know how much that was? And maybe that's something that we can defer. This is probably not a good time, in my personal opinion, to try to do that, but how much is that? MS. HARRIS: Off the top of my head, I'd say the total budget for that is probably 40,000 dollars. We haven't spent nearly that amount of money so far. MS. BRIGHT: Would you say we've even spent 10,000? MS. HARRIS: Maybe. MR. RODRIGUEZ: I'm not talking about this year; I'm talking about next year. CourtReporterNet.com (800) 960-1861 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach eRA - August 1~, ~OU5 MS, HARRIS: Next year? Oh, s()rry, Okay, I don't have that number with me tonight, I'm sorry. I do apologize for that. MS. BRIGHT: I think we budgeted this year 40,000, so we were going to carryover the 30,000, if we needed to. So there's MR. RODRIGUEZ: That's the kind of stuff, I think, is important, that we are aware of and that there's no hidden costs in there. next year And 1 think we can defray ~ill MS. MR. HARRIS: Right. RODRIGUEZ: and give these these programs, like the Caring 40,000's a lot of money in services, Center -- today's times. So I personally want to go through those details -- included details of all these operating fund -- MS. HARRIS: Okay. MR. RODRIGUEZ: line items. MS. HARRIS: Right. Okay. CourtReporterNet.com (800) 960-1861 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boynton Beach CRA - August 12, 2008 MR. RODRIGUEZ: And if we can do it next Tuesday, we'll do it next Tuesday. But I think it's important that we do it publicly. MS. HARRIS: Okay. FEMALE SPEAKER: Mayor Taylor? MS. HARRIS: Yes. FEMALE SPEAKER: Is that the will of the board? MS. BRIGHT: Is that where we're going? I mean -- (Remainder of audio skipped per client's request.) CourtReporterN et.com (800) 960-1861 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 __".....,~ _.<"......,_~~.._~__==----.--.'_~ ~~_,,~ ,_",-.-.<____~.._~"'_...,.~,~~'c_._... "......_._._..~~'"_______'_'"'_.... __ r) CERTIFICATION I, Clara Rubin, hereby certify that the foregoing is a true and correct transcription, to the best of my ability, of the sound recorded proceedings submitted for transcription. I further certify that I am not employed by nor related to any party to this action. In witness whereof, I hereby sign this date: November 21, 2008, --------------------------.-------- Clara Rubin CourtReporterNet.com (800) 960-1861 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY MEETING HELD ON TUESDAY, SEPTEMBER 2, 2008, AT 8:15 P.M. IN CITY COMMISSION CHAMBERS, BOYNTON BEACH, FLORIDA PRESENT: Jerry Taylor, Chair Jose Rodriguez, Vice Chair Woodrow Hay Marlene Ross Ron Weiland Usa Bright, Executive Director James Cherot, Board Attorney I. can to Order Chair Taylor called the meeting to order at 8:18 p.m. II. Pledge to the Flag and Invocation Mr. Hay offered the Invocation followed by the Pledge of Allegiance to the Flag. III. Roll call The Deputy City Clerk called the roll and all members were present. IV. Agenda Approval: A. Additions, Deletions, Corrections to the Agenda None B. Adoption of Agenda Motion Mr. Hay moved to adopt the agenda as presented. Mr. Weiland seconded the motion. The motion passed unanimously. V. Announcements & Awards: Chair Taylor announced the November meeting would be held on Thursday, November 6, 2008, at 6:30 p.m. The second Tuesday In November Is Veteran's Day, a holiday. VI. Consent Agenda: A. Approval of Minutes - CRA Board Meeting - August 12, 2008 1 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 2,2008 citizens in the Heart of Boynton. He expressed concern there were no monies encumbered for the development of the Heart of Boynton as a guarantee of a commitment. There has been confusion In the community over the Ocean Breeze project and the proposals, because the community supports only single family homes. The purchase by the City of three properties for $60,000 then being bought by the CRA from the City for $1.3 million was outrageous to Rev. Chaney. He asserted too many CRA funds were being used to balance the City budget. Chair Taylor responded the land was bought as vacant land and had been appraised based on the proposed development. The CRA encumbered half the monies, and the City encumbered the other half In order to give land to the developer so he could afford to build affordable housing. He noted the Ocean Breeze project did Include single family homes on the west side on the land given to them by the CRA. Rev. Chaney suggested the $1.3 million be retained by the CRA and given to developers as an Incentive. He also recalled the previous CRA board had been chastised for doing the same type of Incentive buying and selling. Mr. Weiland added the City would not be receiving $650,000 of the $1.3 million. Mr. Hay remarked, thinking outside the box, the purchase of the little market on Seacrest would alleviate some of the drugs and crimes In the area. Funds should be found to purchase the market and reduce the cost of police patrols and address safety Issues. No one else coming forward, Chair Taylor closed the public audience. X. Legal: A. Proposed Resolution Recommending the amendment of the eRA Plan and to Modify the Redevelopment Area Boundary Description to Confirm Inclusion of all Unincorporated Enclaves Annexed Into the City After November 8, 2000; Supporting Automatic Inclusion of Annexed Unincorporated Endaves into the Redevelopment Area; Resolving Issues of Retroactive Reallocation of Ad Valorem or TIF Revenues Between the City and the Community Redevelopment Agency Chair Taylor read the title of the resolution and explained the matter had been before the Commission and needed to be approved by the CRA by resolution. Motion Mr. Weiland moved to approve the resolution. Mr. Hay seconded the motion. The motion passed unanimously. XI. Old Business: A. Discussion and Approval of FY 2008-2009 Budget Vice Chair Rodriguez's review of the budget revealed no monies had been allocated for the MLK project because the developer did not need the money until 2010/2011. Due to budgetary concerns, he recommended some monies be set aside for the MLK project. He proposed using $666,000 from the surplus, $313,000 from the contingency fund and half of the $800,000 for 6 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 2, 2008 the 4th Street project that has been deferred to 2012, and allocating $1.4 million to the MLK project In next year's budget. This would address the citizens' concerns and offset the continued decrease In property values. Mr. Hay concurred with Vice Chair Rodriguez that the proposal would support due diligence In allocating funding for the Heart of Boynton Beach. Susan Harris, Director of Finance, Indicated the $666,000 could be encumbered for the Auburn Group. She recalled the Board made two significant changes: one, reduced the money paid to the City for the land to $650,000, and second, deferred $800,000 for the 4th Street project until 2011/2012. The $665,000 can be encumbered this year and then used as needed to offset the $1.9 million. Cito Berguirstaln, Auburn Development, advised a motion had not been made to encumber the $666,000 by reducing what the CRA would be paying the City. The $800,000 was encumbered for the 4th Street project and was not available for this fiscal year budget. The modification of the master developer agreement did allow for some of the funds to be made available during this fiscal year. Mr. Weiland pointed out the allocations were based on the assumption that property values would continue to decline. If that was not correct, the monies may be available. Ms. Bright clarified that Vice Chair Rodriguez was suggesting half of the money encumbered for the 4th Street project be encumbered In the next fiscal year for the MLK corridor. Vice Chair Rodriguez calculated that next year only $500,000 would be needed for the MLK project. Ms. Bright cautioned the CRA would not have any contingency fund available for emergencies If the proposed allocation was approved. Susan Harris admonished contingency funds are needed In the amount of $300,000. These funds, If not used, could be reassigned to the MLK project. Mr. Bergulrstaln felt confident that if $1.4 million were encumbered for the project, the development could move forward. Vice Chair Rodriguez suggested the $666,000 and $400,000 would be $1.1 million with the contingency monies rolled over If not used. Various alternatives to balance the budget were discussed. Mrs. Bright explained some flexibility has to be maintained to assist Auburn Group In moving the first phase forward. She also pointed out the 4th Street project may get moved forward and those monies would need to be available. Motion Vice Chair Rodriguez moved to encumber approximately $1.1 million for the MLK project and Auburn Group to move forward with the development along MLK and get a developer agreement. Mr. Hay seconded the motion. The motion passed unanimously. Mr. Bergulrstaln commended the ,CRA Board and staff on their commitment to the project and revitalization of the area. Mr. Hay lauded the CRA staff for their achievements and announced only three CRA's had been pulled for special recognition for their achievements at a League of Cltles meeting and Boynton Beach was one of the three. Chair Taylor noted Vivian Brooks, Assistant CRA Director would be making a presentation on affordable housing to an Intematlonallevel conference In Calgary, Canada. 7 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 2, 2008 In reviewing other budget Items, Vice Chair Rodriguez further suggested membership fees, delivery services and office supplies could possibly be reduced. He questioned the $20,000 allotted for browntield designation when that was rejected. Ms. Bright advised the MLK corridor was designated as a brownfield, and Tom Hinners had requested assistance with the economic development of the project, but had to do the paperwork with assistance from the CRA staff. The monies would go to legal counsel to make sure the brownfield designation was approved. The cost for the onglnal browntield designation would have been negligible. Assistance would be available through the CRA to property owners to access those credits. Ms. Harris pointed out any funds not used would be rolled over and the cost of an electronic agenda process would also have to be funded. Memberships have been reduced and the Business Development membership fee was split with the City. Since travel has been cut, staff wanted to assure newsletter subscriptions were maintained. It was explained that the office supplies had been increased because the marketing materials that had been outsourced are now being done In- house. Attorney Cherof advised the budget would be adopted and exhibit "AU would be modified with the amendments being suggested. Gertrude Sullivan, 201 NE 6th Avenue, Inquired If the Heritage Fest had been cancelled. She questioned why preparations were being made for the 4th of July and not the Heritage Fest. Ms. Bright responded the Heritage Fest concert and related events had been eliminated; however, the $5,000 Family Day at the Sims Center would be supported. Only two events would be sponsored this year: the 4th of July and the Holiday Event. Kathy Biscuitl, Special Events Manager, reported any events the community wanted could be held at the library. It was noted the attendance had been very poor. Mr. Hay noted the total cost of the Heritage Fest was $95,000. Myra Jones apologized for some of the miscommunication and expressed her appreciation for the assistance of staff. Staff has already committed many things to the community. She suggested the neighborhood association presidents should meet and discuss their differences In private. Lance Chaney, 4312 Polemo Boulevard, opined the $95,000 cost was high, but the Heritage Fest would reflect Boynton Beach's diverse, cultural community. He conceded there were attendance problems. Ignoring the various cultures within the City while spending over $80,000 for travel seemed contrary to affirming the minorities and diversity within the Oty. Vice Chair Rodriguez clarified the travel budget had been decreased from $80,000 to $19,000, a 77% reduction. The recent trip to Calgary was In the current year's budget. Ms. BrIght stressed the CUban Art Show was rejected, as were other cultural eventsl due to a lack of funding. Every effort was being made to get developers to underwrite the cost of any events. Auburn Group donated $50,000 for events and In-kind sponsorships. Those types of donations would not be forthcoming In the new fiscal year. The rationale would be to have a major event In the summer and major event during the holidays. Rev. Chaney urged the City or CRA to devote some dollars to affirm diversity within the City. 8 Meeting Minutes Community Redevelopment Agency Boynton Beach, FL September 2, 2008 Chair Taylor remarked the City cut out funding for all events and turned the planning and events over to the CRA exduslvely. The funding for the Holiday event had been trimmed back. Victor Norfus, 261 N. Palm Drive, had Issues with the way the Heritage Fest was addressed. Ms. Bright acknowledged the CRA would not be funding the types of activities and programs it had In the past. Mr. Norfus stressed the original celebration was Black Awareness Day to showcase the accomplishments of the African-Americans to the City and Nation. It was an educational opportunity. Expanding the program and event overshadowed the educational factor. It needs to return to the citizens to be responSible for the celebration, with some type of support from the City. Mr. Hay recalled his sister, Lillian Artis, was Integral to the concept of Black Awareness within the City. The event should continue in some form. He contended the CRA Board should donate some funds to the event. Mr. Hay encouraged the donation of discretionary funds to ensure continuation of the event in some form. Motion Vice Chair Rodriguez moved to adopt the resolution with Exhibit "A," Incorporating the amendments made by the Board. Mr. Hay seconded the motion. B. Discussion of Contracts with American Realty - Ocean Breeze Attorney Cherof explained there was extensive information provided about the history of the Ocean Breeze project and the contract to purchase the property, plus the Incentive packages offered. At the last meeting changes were requested to be made to the project as proposed. The policy Issues that must be addressed are about the purchase and sale agreements entered Into with Ocean Breeze. A deposit of $210,000 was required within ten days of final ranking of the 2008 Universal ranking of the applicatIon by the Florida Housing Finance Corporation, or October 31, 2008, whichever came first. The purchaser did not timely make that deposit, and the failure would constitute a technical breach of the contract. The contract also provided a curative period once the default Is made. The first decision would be If staff should write a default letter to the developer, triggering their requirement to post the $110,000 deposit. The second issue Is whether the modification proposed is a material difference from the project that was originally approved. If It Is, consideration would be given to the other company that made a proposal, the Carlisle Group. Another alternative is to reject all the proposals and seek new requests for proposals. It was noted the project has been underway for some period of time, and the same amount of time would be necessary to start over again. Frank Chlrkinian, American Realty, noted, on the west side, originally Community Housing Workforce Innovation Pilot Program (CWHIP) funds were being sought and as Indicated In the RFP, were critical to the acquisition. When those funds did not materialize, an alternative concept for building on the west side was developed. Without the Community Housing Workforce Innovation Pilot Program funds, the entire project on the west side stalled. An alternative plan was recently presented to the board. Technically, a deposit should have been made based on the award of the Community Housing Workforce Innovation Pilot Program funds 9 MARKETING & COMMUNICATIONS August 2005 - CRA hired Events/Marketing/PR Coordinator (1 staff member) December 2005 - Hired Biscuiti International as Events Consultant RFP for Marketing Agency March 2006 - Ambit retained. Scope of services include assisting CRA staff with the following: . Establishing brand for CRA . Marketing CRA to So. Florida development community . Event development to stimulate downtown awareness and effective ROI for events . Establish collateral and communications to promote Agency and it's programs/projects to Boynton Beach CRA residents and businesses October 2007 - One, full time staff member and shared assistant with Events Department (One and ~ staff responsible for CRA marketing & PR) October 2008 - Ambit contract reduced by 75% due to reduction in TIF. Marketing and PR projects brought in-house with expectations to maintain current workload and handle unforeseen projects and promote unscheduled events. Collateral Mailings 2005 Mid Term Report .......................................................................... 165 Annual Report 2006 ........... ....................... ...... .................. .................7,975 Annual Report 2007 .......................................................................... 8,380 Trolley Mailer ...................... ............................. ....... ............ .............. 25,490 Res I mprovement Postcard ............................................................... 7,706 The Preserve brochure....... ...... ... .... ... ........ .... ..... ...... ......... .....7,706 MLK Corridor Flyer............................................................................. 3,289 Heartbeat Newsletter May 07 .... ....... .... ...... ........... ...... .......... ..... .......3,747 Heartbeat Newsletter Winter 07 ........................................................ 3,289 HOB Postcard August 06 .................................................................. 3,267 HOB Postcard Fall 06 .......................................................................3,246 HOB Postcard Dec 06 ........................................................................3,267 HOB Postcard July 07 ........................................................................3,778 Las Ventanas Groundbreaking Invite Postcards May 07..................4,100 Masterplan Meeting Invite Postcard #1 ............................................. 8,037 Masterplan Meeting Invite Postcard #2 ............................................. 6.567 CRA FYI Newsletter ........................................................................21,579 Trolley Direct Mail (residents) ........... .....,......"... "....................... ...,...713 Trolley Direct Mail (business/advertising rates)....... ......., ..840 Collateral (not mailed) eRA brochure Trolley maps Events flyers and posters ADDED VALUE Florida Trend provided a premium position to the CRA for its advertising. In addition, the rate for each ad 1/2 page ad was reduced from $9,050 to $6,695 x 2 ads ............................. ........ ................ ...... .......$4710 ULI Magazine full page ad to run at no charge in December 2008 issue The value of this ad is .......................... .... .... .......... ..$6.650 ROI (Return on Investment) The Boynton Beach CRA target markets include: · local businesses and residents · regional businesses and residents that may be inclined to move to Boynton Beach · national investors and developers Marketing materials created for the CRA include response components to assist in tracking the effectiveness of the marketing program: the web site and/or a phone number. TRACKING RESULTS Events, programs, grants, projects, and activities of the board of directors are promoted through an integrated marketing campaign of advertising, direct mail, public relations, community relations, out-of-home and social marketing. EVENTS The CRA has seen an increase in attendance from its first Holiday Concert, featuring Copeland Davis, with attendance of 260 people, jump to over 5.000 Quests at the February 2008 Commodores Concert. WEB SITE www.boyntonbeachcra.com The Web site served 700 visitors in October 2007. It is currently averaging close to 1,500 visitors per month - accessed by 13,164 visitors between October 2007 and July, 2008. Approximately 57% of the visitors were first time. The pages of interest in order of importance are: 1. News and Events is currently even with Programs and Grants 2. CRA Funded Projects 3. Private Developer Projects 96% of the visitors came from the US. The remainder came from Canada, India, Germany, United Kingdom, Philippines, Sweden, France and Finland. 78% of the visitors in the U.S. were from Florida. 22% were from New York, California, Georgia, New Jersey, Illinois, Pennsylvania, Massachusetts and North Carolina. Within Florida, about 60% of the visitors come from Boynton Beach, Lake Worth and Delray Beach. The remaining visitors are predominately from Palm Beach, Broward and Miami-Dade County, South Florida counties with a few from Orlando and Tampa TROLLEY WEB SITE www.boyntonbeachtrollev.com The Web site served 187 visitors in the month of October 2007 and grew to total 4,809 for the period between October 2007 and July, 2008. This is an average of 480 per month. The number of calls to the CRA from people looking for scheduling information has dropped substantially, with the web site providing information on line. Approximately 80% of the visitors are first time. Visitors are predominantly from Boynton Beach, Lake Worth and Delray Beach. Advertising activity is increasing. Jason's Deli is renewing their contract for one year, after it expired on July 31. The pages of interest in order of importance are the "Map & Schedule" and the "Frequently Asked Questions." FROM THE COMMUNITY The eRA staff receives comments through letters, phone calls and emails that businesses and residents continue to become more proud of their Boynton Beach Community. Letters of commendation have been received about the high quality of collateral and direct mail. Accomplishments of Marketina and PR Proarams since 2005 . Local and national branding Awareness . Promotion of eRA Projects and Programs through direct mailings, website and community meetings, have resulted in the following: . HAP Program - $1,742,100: 27 closed and 11 approved HAPs . RIP Program - $500,000: 7 homes completed and 25 applications in process · Awards & Recognition o Affordable Housing o FRA Roy F. Kenzie Award: Boynton Beach Boulevard Extension o Palm Beach County - Executive Director Lisa Bright nominated for Women of Distinction Award o IDA - Annual Report recognition o League of Cities - FRA: recognition for one of three outstanding CRAs in the State of Florida EVENTS TIMELINE KATHY BISCUITI · CRA Special Events Contract Employee October 2005 - November 20,2006 Planned and executed: · Holiday 2005 - Copeland Davis, 250 attendees · Art & Jazz Concert Series 2006 - 4 concerts 200 to 500 attendees each · Pirates of the Intracoastal 2006 - 2 day event 1,500 attendees · Planning for Holiday 2006 and Heritage 2007 · November 20,2006 hired as FT employee to be shared 51 % CRA, 49% City Planned and executed: · Holiday Extravaganza 2006 (CRA & City) - 3,500 attendees · Heritage Celebration opening reception at SCM (CRA & City)- 200 attendees · Heritage Celebration Concert 2007 (CRA & City) - 4,000 attendees · Oceanfront Concert Series 2007 (City) - 4 concerts - 200 attendees each · Salute to Independence - 4th of July 2007- (City) - Horrible weather with lightning 500 attendees · Kurt Bressner came by during setup and told Kathy B that he could not come that night because he was working on the budget · July 7, 2007 - staff called to say she saw an article in the Sun-Sentinel that Special Events was being eliminated by the City. · It was decided that the CRA take on 100% of Special Events including 4th of July and Oceanfront Concert Series which were formerly city events. · 2007/2008 Events Season (100% eRA funded) · Special Events and Marketing develop first ever Sponsorship Package. · Presenting Sponsor package is sold to Auburn Group for $50,000. · Holiday Extravaganza 2007 - 4,000 attendees · Heritage Celebration opening reception at Women's Club - 100 attendees · Heritage Celebration Concert 2008 - 5,000 attendees · Oceanfront Concert Series 2008 - 300 attendees each · Salute to Independence - 4th of July 2008 - Rain - 1000 attendees. · 2008/2009 Events Season · Presenting Sponsor package again sold to Auburn Group for $50,000. · Holiday Extravaganza 2008 Ms. Biscuiti was hired for her expertise in the planning and execution of events. In addition the CRA depends on the contacts and relationships she brings to the table from her 30 years in the community. Events - Summary of Major Events 2006 - 2008 ] FY 2006/2007 a) CRA City Total Pirates (Octl $ 27,532 $ 26,453 $ 53,985 Holidav (Dee) (b I 91,125 87,551 178,676 Heritaae (Feb) 117,116 51,300 168,416 4th of Julv 0 0 0 Oceanfront Concerts ..- 0 0 0 Marina Summer Fest (Aual 24,810 0 24,810 Boat Parade iDecl 1,000 0 1,000 FY 2007/2008 CRA City Total $ . $ - $ - 144,479 0 144,479 187,429 0 187,429 72,057 0 72,057 5,728 0 5,728 965 0 965 1,351 0 1,351 Total $ 261,582 $ 166,304 $ 426,886 $ 412,009 $ $ 412,009 (a) Costs shared between CRA (51 %) and City (49%) Heritage Fest funded 70% by CRA due to City budget constraints. (b) In 2006 three events: Medieval Faire, Holiday Parade, Holiday Concert Salary and Benefits I $ Events - Personnel Costs FY 200512006 (a) I I FY 2006/2007 CRA I City I Total CRA I City I 76,020 $ 23,578 $ 99,598 $ 104,926 $ $ I Total I 104,926 (a) Represents shared salary and benefits for Events Director plus 1/2 staff person funded 100% by CRA. Events - City Charges to CRA I FY 2005/2006 I I FY 2006/2007 CRA I City I Total CRA I City I Total Pirates. Police $ 7,747 $ 7,443 $ 15,190 NA NA NA Holiday. Police $ 11,219 $ 10,779 S 21.998 $ 10,667 S $ 10,667 Holiday. Other City $ 22,959 S $ 22,959 Heritage - Police $ 8,649 $ 8,310 $ 16,959 $ 11,958 $ $ 11,958 Heritage. Other City $ 502 $ $ 502 $ 1,770 $ $ 1,770 4th of July. Police $ $ $ $ 2,046 $ S 2,046 4th of July - Other City $ $ $ $ 2,292 $ S 2,292 Oceanfront - Police $ $ $ $ $ S Oceanfront - Other City $ $ $ $ 720 $ S 720 Marina Fest. Police $ 2,881 $ $ 2,881 $ $ S Marina Fest. Other City $ 1,143 $ $ 1,143 $ $ S Boat Parade. Police $ $ $ $ 489 $ $ 489 Boat Parade - Other City $ $ $ $ $ S Total $ 32,141 $ 26,532 $ 58,673 $ 52,901 $ $ 52,901 C:\Documents and Settings\buckleya\Local Settings\Temporary Internet Files\OLK61\Events - November 2008 t!udt C/;q~ Q1btf; \ ~ II --r ~(d~ ~ ~~"'6 to ~(()i.cJ.2-- Q.er~'- >V'}\u- bo~ . 'f'1'-~\oe1-::> ~:' . . ~~J+;(~y~ ~ \~."* r"}-~. \ '. ' ~ o-lDo-r€-- ~ ~ -1-D 0--- ,'1Y!r.",n7J HI i n? . JJ'.'" / , , IT;'. r ~ l l'I-"\\ .,,-r ' I i i I t I ! I 11 II , l t I I l l ~ i I I l i , I t . I t l I \ l i } i i , I , # , i 1 ~ ! I i I; I ~ : ,: l' i; !' ~~~<1Y~Te~'CRA . East Side-West S'lde-Seas'lde Rena'lssance eRA BOARD MEETING OF: January 13,2009 I I Consent Agenda I I Old Business I X I New Business I I Legal I I Other SUBJECT: Presentation of Audited Financials for FY 2007-2008 SUMMARY: Attached please find copy of the Boynton Beach CRA's audited financial statements for FY 2007-2008. A presentation will be given at the meeting by the CRA auditors, Sanson Kline Jacomino & Company, LLP. FISCAL IMPACT: N/A CRA PLAN, PROGRAM OR PROJECT: N/A RECOMMENDATIONS: N/A ~ r A..</.\ ('VyJ H ()/VWj Susan Harris Finance Director T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by MeetingIFY 2008 - 2009 Board Meetings\l- 13-09 Meeting\Audited Financials.doc MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING HELD ON TUESDAY, JANUARY 13, 2009 AT 6:30 P.M. IN CITY COMMSSION CHAMBERS, BOYNTON BEACH, FLORIDA PRESENT: Jerry Taylor, Chair Jose Rodriguez, Vice Chair Woodrow L. Hay Marlene Ross Ron Weiland Lisa Bright, Executive Director James Cherof, Board Attorney I. Call to Order - Chair Jerry Taylor Chair Taylor called the meeting to order at 6:30 p.m. II. Pledge to the Flag and Invocation Mr. Hay offered the invocation followed by the Pledge of Allegiance to the Flag. III. Roll Call The Recording Secretary called the roll, and a quorum was present. IV. Agenda Approval: A. Additions, Deletions, Corrections to the Agenda Mr. Hay requested in the event Item A. "Presentation of Audited Financial Statements for FY 2007-2008," under XII. New Business had not been addressed by 7:30 p.m., it be the next item to be ad.dressed. Chair Taylor replied in the affirmative, suggesting the item could either be heard at 7:30 or sooner. Mr. Weiland noted, if Item XII. A were to be moved up, he wished to pull Item G, "Approval of Piggy..backing on Agreement between Delray Beach CRA and PMG Associates to Conduct Project Development, Financial and Real Estate Market Analysis" under VI. Consent Agenda to XII. New Business. Chair Taylor suggested Item G be placed under New Business as Item F. Lisa Bright, Executive Director, questioned whether Item G on the Consent Agenda should be discussed under XI. Old Business. 1 BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Boynton Beach, Florida) Basic Financial Statements September 30, 2008 (With Independent Auditor's Report Thereon) BOYNTON BEACH COMMlfNITY REDEVELOPMEN'I AGENC\ (A Component U ni I pf Ihe City of BovTlton Beach, Florida! For the Year Ended Septemher ~(). :WOX Table of Contents FINANCIAL SECTION: Independent Auditor's Report Management's Discussion and Analysis (Required Supplementary Information) Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets Statement of Activities Fund Financial Statements: Balance Sheet - Governmental Funds Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Assets Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Reconciliation of Revenues, Expenditures and Changes in Fund Balances Governmental Funds to the Statement of Activities Notes to the Basic Financial Statements Required Supplementary Information: Budgetary Comparison Schedule Notes to the Budgetary Comparison Schedule COMPLIANCE SECTION: Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Management Letter in Accordance with the Rules of the Auditor General ofthe State of Florida . __~age _ " q )(1 II 12 I, ]4 2 ~~ 24 2:'-> .) -; FINANCIAL SECTION Independent Auditor's Report rsKJl ~ SANSON KLINE JACOMINO & COMP~ LLP Certified Public Accountants & Consultants 5805 Blue Lagoon Drive Suite 220 Miami, Florida 33126 Tel. CIDS) 269-8633 Fax (305) 265-0652 www.skinet.com Independent Auditor's Report To the Board of Directors Boynton Beach Community Redevelopment Agency: We have audited the accompanying basic financial statements of the governmental activities and each major fund of the Boynton Beach eommunity Redevelopment Agency (the Agency), a component unit of the City of Boynton Beach, Florida (the City), as of and for the year ended September 30, 2008, which collectively comprise the Agency's basic financial statements, as listed in the table of contents. These financial statements are the responsibility of the Agency's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fmancial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control over fmancial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall fmancial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the fmancial statements referred to above present fairly, in all material respects, the respective fmancial position of the governmental activities and each major fund of the Agency as of September 30, 2008, and the respective changes in fmancial position thereof for the year then ended in conformity with U.S. generally accepted accounting principles. In accordance with Government Auditing Standards, we have issued our report dated November 19, 2008 on our consideration of the Agency's internal control over fmancial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. f'SK.KJj ~ The management's discussion and analysis on pages 3 through 7 and the budgetary comparison information on pages 23 and 24 are not a required part of the basic financial statements but arc supplementary infonnation required by U.S. generally accepted accounting principles. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the method~ of measurement and presentation of the required supplementary infoTIl1ation. IIowever. we did not audit the information and express no opinion on il I~~ ~. f ~ t-t/ November 19.2008 ..., Management's Discussion and Analysis BOYNTON BEACH COMMUNITY REDEVELOPMENT A<;ENC'\ (A Component l Jnit of the ('ity of Boynton Beadl, Flonda I Managemenl's Discussion and AnalYSIS September 30. 2()0~ The Management's Discussion and Analysis (MD&A) of the Boynton Beach Community Redevelopment Agency (the "Agency") is designed to provide an objective and easy to read analysis of the financial activities based on currently known facts, decisions, and conditions. The MD&A provides a broad overvie\\. short-term and long-term analysis of the Agency's activities based on information presented in the financial statements. Specifically, this information is designed to assist the reader in focusing on significant financial issues, provide an overview of the Agency's financial activity and identifY changes in the Agency's financial position and its ability to address the next year's challenges. Finally, the MD&A will identifY any material deviations from the approved budget. The Agency is an independent agency and a component unit of the City of Boynton Beach, Florida ("City''') The Agency has presented its financial statements in accordance with the reporting model required by Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements Ulld Management's Discussion and Analysis for State and Local Governments. The information contained in this MD&A is only a component of the entire financial statement report. Readers should take time to read and evaluate all sections of the report, including the footnotes and required supplementary information provided. FINANCIAL HIGHLIGHTS · The Agency tax increment fund revenues increased by 4.8% (approximately $432,(00) to $9,520,342 during the fiscal year. This resulted from increased commercial development in the redevelopment district. The Agency began the fiscal year with a net assets balance of $4,365,210. The Agency's total revenues for the year ended September 30, 2008, were approximately $11.37 million, while total expenses were approximately $9.9 million, increasing net assets by approximately $ 1.46 million. The Agency's total net investment in capital asset projects increased by approximately $1.04 million. This increase included the purchase of land targeted for the development of low to moderate income for sale residential projects, and the elimination of slum and blight. OVERVIEW OF THE FINANCIAL STATEMENTS The Agency's basic financial statements are comprised of the I) government-wide financial statements, 2 i fund financial statements, and 3) notes to the financial statements. This report also contains required supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements The government-wide financial statements provide readers with a broad overview of the Agency's finances. in a manner similar to a private-sector business. In addition, the government-wide statements are prepared using the accrual basis of accounting. The Statement of Net Assets (balance sheet) presents information on the Agency's assets and liabilities, with the difference between the two reported as net assets. The Statement of Activities (income statement) presents information showing how the Agency's net assets changed during the most recent fiscal year. All changes in revenues are reported as soon as underlying events giving rise to the change occur regardless of the timing of related cash flows. The expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. , .' BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Boynton Beach, Florida) Management's Discussion and Analysis September 30, 2008 The government-wide financial statements present functions of the Agency that are principally supported by tax increment financing (governmental activities). The governmental activities of the Agency include general government activities, public safety and redevelopment projects. Thus, the Agency has no business- type activities. The government-wide financial statements are found beginning on page 8 of this report. Fund Financial Statements The governmental fund fmancial statements provide readers with an overview of each fund and its related function in a traditional format. A fund is a grouping of related accounts that maintain control over resources that are segregated for specific activities or objectives. The Agency, like other state and local governments, uses fund accounting to ensure and demonstrate legal compliance with finance-related legal requirements. The Agency utilizes three funds for the fiscal year ending September 30, 2008, the General Fund, which is a governmental fund, the Debt Service Fund, used for servicing all debt payments and the Projects Fund, from which all capital outlays financed from Bond proceeds or other sources of fmancing are spent. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, the governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. The focus of governmental funds is narrower than government-wide financial statements, and it is therefore useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide fmancial statements. By comparing and contrasting, readers may better understand the long-term impact of the Agency's near term financing decisions. The "Balance Sheet - Governmental Funds" and "Statement of Revenues, Expenditures, and Change in Fund Balance - Governmental Funds" are reconciled as shown on the "Reconciliation of the Balance Sheet - Governmental Fund to the Statement of Net Assets" and the "Reconciliation of the Statement of Revenues, Expenditures and Change in Fund Balance - Governmental Funds to the Statement of Activities" to facilitate the comparison between the governmental funds and governmental activities. The Agency adopts an annual appropriated budget for its General Fund. A budgetary comparison schedule provided for the General Fund demonstrates compliance with this budget. The basic governmental funds fmancial statements can be found beginning on page 10 of this report. The reconciliations between the governmental funds and governmental activities are found on pages 11 and 13. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and the fund financial statements. These notes to the financial statements begin on page 14 of this report. 4 BOYNTON BEACH COMMUNITY REDEVELOPMENT AGEl\'C'\ (A Component Unit of the City of Boynton Beach, Floridi11 Management'~ Discussion and Analy~is Septemher ~(), 200~ In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Agency's budget to actual results for the General Fund for the current year. The required supplementary information can be found on page 23 of this report, GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. 11\ the case of the Agency, assets exceeded liabilities hy $5,828,1\] 6 at the close of the most recent fiscal year However, the largest portion of the Agency's total assets, 69%, is reflected in its capita] assets. Summary of Net Assets September 30, 2008 2007 Assets Current and other assets $ ] 0,] 06,362 $ 9,075.32 ] Investments ],7]7,428 4,0] 2,73] Capital assets 25,780,037 24,738,955 Total assets 37,603,827 37,827,007 Liabilities Current ]iabilities 328,375 485,559 Long term liabilities 31,446,636 32,976,238 Total liabilities 31,775,011 33,461,797 Net Assets Invested in capita] assets, net of related debt (],831,211 ) (3,773,3]6) Restricted for: Capital projects ] ,433,519 202,034 Debt service ~,01 ] ,700 228,480 Note receivable 100,000 100,000 Unrestricted 3,114,808 7,608,012 Total net assets $ 5,828,816 $ 4,365,210 The Agency has restricted assets for various capital projects and the bond reserve fund requirement. Governmental Activities Governmental activities increased the Agency's net assets by $1,463,606. Key elements of this increase are as follows. " BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Boynton Beach, Florida) Management's Discussion and Analysis September 30, 2008 Summary of Changes in Net Assets Year Ended September 30, 2008 2007 Revenues Program Revenues Charges for services $ 1,406,035 $ 1,040,032 General Revenues Tax increment revenues 9,520,342 9,088,068 Other revenues 442,207 957,632 Total revenues 11,368,584 11,085,732 Expenses General government 5,312,437 2,941,993 Redevelopment projects 2,939,796 1,949,672 Interest on long-term debt 1,540,857 1,550,825 Loss on sale of capital assets 111,888 Total expenses 9,904,978 6,442,490 Increase in net assets 1,463,606 4,643,242 Net assets beginning of year 4,365,210 (2,278,032) Prior period adjustment 2,000,000 Net assets end of year $ 5,828,816 $ 4,365,210 Tax increment revenues increased by $ 432,274 during fiscal year 2008. Tax increment revenue increases are a result of increases in commercial development in the Agency's redevelopment area. Year to year expenses increased by $3,462,488 due primarily to rollover funds from 2007 and budget increases due to: full year of marina operations and increase in fuel sales costs; associated property taxes and association dues; the addition of a CRA policing program; full cost of events and related personnel (in 2007 expenses were shared with the City); expansion of the trolley route; additional property maintenance costs; and increase in community grant programs. FINANCIAL ANALYSIS OF THE AGENCY'S FUNDS The focus of the Agency's governmental funds is to provide information on near-term inflows, outflows and balances of expendable resources. Such information is useful in assessing the Agency's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. At the end of fiscal year 2008, the Agency's governmental funds reported an ending fund balance of $11,134,326, a decrease of $1 ,084,848 in comparison with prior year. The decrease is attributable to increased redevelopment projects and program activity due to the continued efforts to eliminate the slum and blight. 6 BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENC\ (A Component Unit of the City of Boynton Beach, Florida) Managemenl's Discussion and Analysi" September 30, 200R GENERAL BUDGETARY HIGHLIGHTS Actua] total revenues were under budgetary estimates by approximately $75,000. Actual total expenditures were over budgetary estimates by approximately $1 ] ,000. CAPIT AL ASSETS AND DEBT ADMINISTRATION Capital Assets The Agency will continue to assemble properties throughout the redevelopment district to create development opportunities. During the year ended September 30, 2008, the Agency made acquisitions of real property of $ 1.2 million. The property acquisitions are targeted for the development of low to moderate income for sale residential projects, and the elimination of slum and blight. Long- Term Debt At the end of fiscal year 2008, the Agency has total bond debt and loans payable outstanding of $3] ,345,673 Of this amount, $16,795,000 and $10,795,000 represents the 2004 and 2005 Series Tax Increment Revenue Bonds, respectively. In addition, there are two loans payable of totaling approximately $3.15 million. The Agency's tot a] debt decreased by approximately $1.6 million during the current fiscal year and is expected 10 decrease by approximately $].6 million in fiscal year 20 I O. ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES The Agency Board approved the 2008-2009 budget, which included a $1.2 million decrease in tax increment revenues (TIF). Tax increment revenue projections were based upon actual values from the tax appraiser', office and the City of Boynton Beach. The TIF decrease is attributable to a 9.7% loss in residential property valuations within the Agency district, which includes a market correction by the Palm Beach County property appraiser and tax reform measures by the State of Florida. Despite the downturn in the market, the Agency anticipates capturing TIF revenues from severa] projects that are in the development pipeline and are expected to be realized in the upcoming fiscal years. REQUEST FOR INFORMATION This financial report is designed to provide a general overview of the Agency's finances. Questiom concerning any of the information provided in this report or requests for additional information should be addressed to Susan Harris, Finance Director at 915 S. Federal Highway, Boynton Beach Florida 33435. 7 Basic Financial Statements BOYNTON BEACH COMMUNITY REDEVELOPMENT A(;ENC\ (A Component Unit of the t 'ity of Boynton Beach, FIonda I Statement orNet Assets September 30, 20UR (;overnmental Activities ASSETS Cash and cash equivalents Investments Accounts receivables Note receivable Prepaids Unamortized bond issuance costs Capital assets, net of accumulated depreciation: Land Furniture and equipment Renovations Leasehold improvements Total assets '" l),637,72.h 1.717A2k 3,54~ 1 00,0011 4,000 .~nl.m:q 25,6fl5,3X2 .'\ 1.93x 34,73" 27,982 37,603,827 LIABILITIES Accounts payable and accrued expenses Deposits payable Due to other governments Long-term liabilities: Due within one year Due in more than one year Totalliabilities ] ]8,9o.j 4,9iW 204.4-\ J 1,590,22 i 29,856,415 31,775,0]1 NET ASSETS Invested in capital assets, net of related debt Restricted for: Capital projects Debt service Note receivable Unrestricted Total net assets (1,831.21 i l [,433.5] q 3.() I 1.7 0 (I 100,00(1 3,114,801-1 5,828,81 b $ The notes to the basic financial statements are an integral part of this statement. II BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Boynton Beach, Florida) Functions/Programs Governmental Activities: General government Redevelopment projects Interest on long-term debt Loss on sale of capital assets Total Statement of Activities For the Year Ended September 30, 2008 Program Revenues Net (Expense) Revenue and Changes in Net Assets Expenses Charges For Services $ 5,312,437 $ 1,406,035 $ 2,939,796 1,540,857 111,888 $ 9,904,978 $ 1,406,035 $ General Revenues: Tax increment revenue $ Interest and other income Total general revenues Change in net assets Net assets - beginning of year Net assets - end of year $ (3,906,402) (2,939,796) (1,540,857) (111,888) (8,498,943) 9,520,342 442,207 9,962,549 1 ,463,606 4,365,210 5,828,816 The notes to the basic financial statements are an integral part of this statement. 9 BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENC) (A Component {lnit of the City of Boynton Beach. Flonda) Balance Sheet Govemmental Funds September 30.20011 ASSETS Cash and cash equivalents Investments Accounts receivables Note receivable Prepaids Total assets lotal ( ;overnmental General Fund Projects Fund Debt Service Fund Funds ~ 6,X74,382 $ 1.469,07:' S 1.294,272 5. Y,03772( 1.717 .4 2X 1.717A2~ 3,547 354' 100,00U 100,001, 4,000 4,OO() $ 6,981,929 S ! ,469,072 $ 3,011,700 S II ,462,7U I LIABILITIES AND FUND BALANCE Liabilities: Accounts payable and accrued expenses Deposits payable Due to other governments Total liabilities X3.411 4,9811 204,43! 292,822 3:",:")3 ! I ~,9h'~ 4,4XIi 204,43J 328.375 35,553 Fund Balances, Reserved for: Prepaids Capital projects Debt service Note receivable Encumbrances Unreserved Total fund balances I otalliabilities and fund balances 4,000 4,OO() 7 I X,45~ 'lX,45X 1,0 J UOO 1,011. 7011 100,000 100,00" 43h.504 714,5h I I ,151.0h' 6,148,603 6,148,603 6,689,107 1,433,519 3,011,700 I1,l34,326 $ 6,981,929 $ 1,469,072 S 3,011,700 $ j 1,462,70] The notes to the basic financial statements are an integral part of this statement I() BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Boynton Beach, Florida) Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Assets For the Year Ended September 30, 2008 Fund balance - governmental funds Amounts reported for governmental activities in the statement of net asset are different because: Capital assets used in governmental activities are not reported in the governmental fund. Capital assets - net of accumulated depreciation Unamortized bond issuance costs are not reported in the governmental funds. Long-term liabilities are not reported in the governmental funds. Compensated absences Bonds and notes payable Net assets of governmental activities The notes to the basic fmancial statements are an integral part of this statement. 11 $ 11,134,326 25,780,037 361,089 $ (100,963) (31,345,673) 5,828,816 BOYNTON BEACH COMMUNrTY REDEVELOPMENT AGENC'I (A Component t lnit of the' City of Boynton Beach. Florida I Statement of Revenues. Expenditures and Changes in Fund Balances Gnvemmental Funds For the Year Ended September 10. 200X rotal Governmental General Fund Projects J<'und Debt Service J<'und Funds REVENUES Tax increment revenue '1.520.342 LJ.520)4. Charges for services IA06,()3~ I A06.l1' , Interest and other income 261,393 29,377 j 13,421 404,1'11 Total revenues ] 1,187,770 29,377 113,421 11,330,56R EXPENDITURES General government '.24R,Y4k 5,24x."4~. Redevelopment projects 4. 1 O().L)7LJ 4.I()O.Q"'" Debt service: Principal i ,524,403 I.Sc"."b' Interest and other charges 1,541,026 1,541,02b Total expenditures 5,248,948 4,100,979 3,065,489 12,415,41b Excess (deficiency) of revenues over (under) expenditures 5,93~,~22 (4,071,6021 (2,952,06S) (1,OS4.b4b,' OTHER FINANCING SOURCES (USES) f ransfers in '."00.lllh 1.00<;.5.J; ~'.(2).(14.~ fransfers out (7,025,644) (7,025,6441 Total other linancing sources (uses) (7,025,644) 3,960,106 3,065,53X Net change in fund balances (1,086.822) ( 111,4911) 11'\,470 (1.0S4.~4o 1 Fund balances. beginning of year 7,775,929 1,545,015 c,sn,nu J2,2IY,PJ Fund balances. end of' year $ 6,689,107 S 1,433,519 S 3,0] 1,700 11,134,32b The notes to the basic financial statements are an integral part of this statemen1. 12 BOYNTON BEACH COMMUNITY REDEVELOP:MENT AGENCY (A Component Unit of the City of Boynton Beach, Florida) Reconciliation of the Statements of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds to the Statement of Activities For the Year Ended September 30,2008 Net changes in fund balances - total governmental funds Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlay expenditures. However, in the statement of activities, the cost of those assets is depreciated over their estimated useful lives. Expenditures for capital assets Less current year depreciation expense For governmental funds, the issuance of long-term debt provides current financial resources and the repayment of long-term debt consumes current financial resources. Neither transaction, however, has any effect on net premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. Some expenses reported in the statement of activities do not require the use of current fmancial resource and, therefore, are not reported as expenditures in governmental funds. Change in long-term compensated absences. Change in net assets of governmental activities The notes to the basic fmancial statements are an integral part of this statement. 13 $ (1,084,848) 1,075,077 (33,995) 1,540,418 $ (33,046) 1,463,606 Notes to the Basic Financial Statements BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY (A eomponent Unit of the City of Boynton Beach, Florida) Notes to the Basic Financial Statements September 30, 2008 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This summary of the Boynton Beach Community Redevelopment Agency (the "Agency") significant accounting policies is presented to assist the reader in interpreting the basic fmancial statements. The policies are considered essential and should be read in conjunction with the basic fmancial statements. The accounting policies of the Agency conform to U.S. generally accepted accounting principles applicable to governmental units. This report, the accounting systems and classification of accounts conform to standards of the Governmental Accounting Standards Board (GASB), which is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the more significant policies. A. Organization and reporting entity The Agency is a component unit established by the City of Boynton Beach, Florida (the "City") under the authority granted by Florida Statutes 163, Section III. The purpose of the Agency is to promote and guide physical and economic redevelopment in the City of Boynton Beach and part of Palm Beach County, Florida (the "District"). The Agency is a legally separate entity established by Ordinance number 83-41 of the City on December 20, 1983. The Agency has adopted GASB Statement No. 14, the Financial Reporting Entity, for the purpose of evaluating its component unit financial statements. Based on the criteria in GASB Statement No. 14, the Agency has determined that there are no component units that meet criteria for inclusion in the Agency's financial statements. The Agency is governed by a board comprised of the elected officials of the City of Boynton Beach. The City is considered to be fmancially accountable for the Agency and in accordance with GASB Statement No. 14, the Agency is considered as a blended component unit in the City's comprehensive annual financial report. B. Reporting Model The Agency's basic financial statements consist of government-wide statements, including a statement of net assets and a statement of activities, and fund fmancial statements which provide a more detailed level of financial information. Government-wide financial statements The statement of net assets and the statement of activities report information on all of the activities of the Agency. Governmental activities are reported separately from business-type activities which rely on fees charged to external parties as their primary revenues. The Agency has no business-type activities. The statement of net assets reports the Agency's financial position as of the end of the fiscal year. In this statement, the Agency's net assets are reported in three categories: invested in capital assets, net of related debt; restricted net assets; and unrestricted net assets. 14 BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of thc Citv of Boynton Beach. Florida) Notes to the Basic Financial Statement~ September 30. 200k 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Reporting model (Continued) The statement of activities presents a comparison between direct expenses and program revenues for each function of the Agency. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include charges for services that are directly related to a given function and grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Tax increment revenue and other items not meeting the definition of program revenue are reported instead as general revenue. Fund financial statements For the fiscal year ending September 30, 2008, the Agency reports three major funds, the General Fund, the Debt Service Fund, and the Projects Fund. The General Fund is classified as a governmental fund and accounts for all financial resources controlled by the Agency. The Debt Service Fund is used to account for the accumulation of resources for the annual payment of principal and interest on long-tenn obligation debt. The Projects Fund accounts for financial resources to be used for redevelopment programs and the acquisition or construction of capital projects. The governmental fund statement includes reconciliations with brief explanations to better identify the relationship between the government-wide statements and the statements for the governmental fund. C. Measurement focus and basis of ac.counting The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Agency considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when the related fund liability is incurred. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. D. Cash and Cash Equivalents Cash and cash equivalents are defined as short-term highly liquid investments that are both readily convertible to known amounts of cash and have an original maturity of three months or less from the date of purchase. Cash and cash equivalents consist of petty cash and deposits with financial institutions qualified as public depositories under Florida law. All deposits are insured by federal depository insurance and/or collateralized with securities held in Florida's multiple financial institution collateral pool as required by Chapter 280, Florida Statutes. I::; BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the eity of Boynton Beach, Florida) Notes to the Basic Financial Statements September 30, 2008 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Investments Investments made locally consist of amounts placed in obligations of United States Government Agencies and Instrumentalities, and are reported at fair value. Investments for the Agency funds consist of monies placed in certificates of deposit. The Agency is authorized to invest in direct obligations of the United States of America or any agency thereof, interest bearing time or demand deposits with any qualified depository institution, commercial paper, bankers' acceptances, state and/or local government taxable debt, mutual funds, repurchase agreements and the State Treasurer's investment pool, which has the characteristics of a money market fund. F. Capital assets Capital assets are defined by the Agency as assets with an initial, individual cost of $1,000 or more and an estimated useful life of more than one year. These assets are recorded at historical cost. Donated capital assets are recorded at estimated fair value at the date of donation. Capital assets are depreciated using the straight-line method over the assets' estimated useful lives of all reported capital assets, except land and land improvements. The estimated useful life of furniture, fixtures and equipment is five to ten years. G. Bond premiums, discounts and issuance costs In the government-wide fmandal statements, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund fmancial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs during the current period. The face amount of debt issued is reported as other fmancing sources. Premiums received on debt issuances are reported as other financing sources while discounts are reported as other financing uses. Issuance costs are reported as debt service expenditures. H. Revenue sources Tax increment revenues are the primary source of revenue for the Agency. Tax increment revenues are collected from two governmental entities that levy property taxes within the legally defined redevelopment area of the Agency, which is the City of Boynton Beach, Florida and Palm Beach County, Florida. I. Compensated absences It is the Agency's policy to permit employees to accumulate earned but unused vacation, sick pay and comp time benefits. Employees may, depending on their level of service, be paid for various amounts of their total accrued leave upon termination or retirement. The Agency accrues a liability for leave hours that meet the criteria for payment at the eligible employees' current rates of pay. J. Long-term liabilities All long-term debt and other long-term obligations are reported in the government-wide financial statements. 16 BUYNTON BEACH COMMUNITY REDEVELOPMENT AGENC\ (A Component Unit of the City of Boynton Beach. Florida I Notes to the Basic Financial Statements September 30. 200R 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) K. Net assets Net assets represent the difference between assets and liabilities and are reported in three categories as hereafter described. Net assets invested in capital assets. net of related debt, represent capital assets, net of accumulated depreciation and any outstanding debt related to those assets. Net assets are reported as restricted when there are legal limitations imposed on their use by legislation, or external restrictions imposed by other governments, creditors, or grantors. Unrestricted net assets are net assets that do not meet the definitions of the classifications previously described. When both restricted and unrestricted resources are available for use, it 1S the Agency's policy to use unrestricted resources first, and then restricted resources as they are needed. L. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management's knowledge of current events and actions it may undertake in the future. they may ultimately differ from actual results. 2. CASH, CASH EQUIVALENTS AND INVESTMENTS All of the Agency's bank deposits are insured by the Federal Deposit Insurance Corporation or collateralized in accordance with Florida Security for Public Deposits Act (the "Act"). Under the Act, every qualified public depository shall deposit with the Treasurer eligible collateral having a market value equal to 50% of the average daily balance for each month that a1l public deposits are in excess of any applicable deposit insurance. If the public deposits exceed the total amount of the regulatory capital accounts of a bank or the regulatory net worth of a savings association, the required collateral shall have a market value equal to 125% of the deposits. The Agency's investment policy is designed to ensure the prudent management of funds, and the availability of operating and capital funds when required, while earning a competitive return within the policy framework. The primary objectives, in order of priority, of investment activity sha1l be safety, interest rate risk, liquidity and yield. Investments of the Agency include deposits and guaranteed contracts with banks or other financial institutions which meet standards for deposits stipulated in investment agreements. Fair value Cash and cash equivalents: Cash in bank Investments: Certificates of deposit Total deposits and investments $ 9,637.726 $ 1.717.428 11,355,154 17 BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Boynton Beach, Florida) Notes to the Basic Financial Statements September 30, 2008 2. CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued) A. Interest rate risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Agency's investment policy to minimize interest rate risk is to structure the investment portfolio so that the securities mature to meet cash requirements for current budgeted needs, thereby avoiding the need to sell securities on the open market prior to maturity. Investment type Certificates of deposit Investment Maturities (in years) Fair value Less than 1 1-10 $ 1,717,428 $ 1,717,428 B. Foreign currency risk Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment or a deposit. The Agency does not hold foreign currency or foreign currency investments and therefore is not subject to foreign currency risk. C. Credit risk The Agency also mitigates credit risk, which is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Custodial credit risk is the risk that, in the event of the failure of the counterparty to a transaction, the Agency will not be able to recover the value of investment or collateral securities that are held in the possession of an outside party. D. Concentration of credit risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The Agency diversifies its investment portfolio, where necessary, to minimize the impact of potential losses from one type of security or individual issuer, excluding U.S. Treasuries, and Federally Guaranteed Obligation. The implementation of GASB Statement No. 40 requires the disclosure of investments in anyone issuer that represents five percent or more of total investments. As of September 30, 2008, all of the Agency's investments were held with Commerce Bank (bond reserves). 3. NOTE RECEVIABLE The Agency holds a mortgage as security for a non-interest bearing promissory note from Delray Boynton Academy (the "Academy") in the amount of $100,000. During fiscal year 2008, the promissory note became due as a result of the Academy's failure to comply with the terms of the Grant Agreement, entered into by and between the Agency and the Academy. 18 BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENf" (A Component Unit of the City of Roynton Reach. Florida! Notes to the Rasic Financial Statements September 30. 2008 4. CAPITAL ASSETS Capital assets activity for the year ended September 30, 2008. was as follows: Balance at Balance at 10/1 /07 Additions Deletions 9/30/2008 Capital assets, not being depreciated: Land $ 24,616,086 $ 1,161 , I 84 $ (111,888) $ 25,665.382 Capital assets, being depreciated; Furniture and equipment I I OAT;' 4.39(1 114)';6 Renovations 40,60h 40.600 Leasehold improvements 29,088 21,391 50,479 Total capital assets. being depreciated 180,171 25,781 205.952 .""----". ---.---- Less accumulated depreciation for; Furniture and equipment (42,163) (20,766) ( 62,Y291 Renovations (2,232) (3,639) (5,871 ) Leasehold improvements (12,907) (9,590) (22,497) Total accumulated depreciation ---- (57,302) (33,995) ___ (9 J....~_~7 ) Total capital assets, being depreciated. net 122,869 (8,213) ____~~2. ---------.- Total capital assets, net of accumulated depreciation $ 24,738,955 $ 1,152,970 $ (111,888) $ 25, 780,Q3 7 Depreciation expense of $33,995 was charged to general government. 5. LONG- TERM LIABILITIES At September 30, 2008, bonds and loans payable consisted of the following: BONDS: 2004 Tax Increment Revenue Bonds, dated December 14,2004, due in annual principal installments of $375,000 to $1,625,000 through October L 2024, bearing interest rates 00.0% to 5.0%. 2005 Tax Increment Revenue Bonds, Series A&B Bonds dated Decemher 12,2005, due in annual principal installments of $235,000 to $2,395,000 through October I, 2026, bearing interest rates of 4.50% to 5.65%. 2005A 2005B $ 16.795.000 3,000,000 7.795.000 LOANS: Promissory note to TRG-Boynton Beach, Ltd. at 50/0 interest, payahle III monthly installments through January 25. 2011 Promissory note to Bank of America, N.A. at 5.65% interest, payable 1Il semi-annual installments through September 20.2016. 1.214.869 . _~4,542_ $ 30,739,411 19 BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY (A Component Unit ofthe City of Boynton Beach, Florida) Notes to the Basic Financial Statements September 30, 2008 5. LONG-TERM LIABILITIES (Continued) The annual requirements to amortize bonds and loans payable outstanding as of September 30, 2008, are as follows: 2004 Tax Increment 2005A Tax Increment Fiscal Revenue Bonds Revenue Bonds Year(s) Principal Interest Principal Interest 2009 $ 635,000 $ 754,700 $ - $ 135,000 2010 650,000 735,650 135,000 2011 675,000 714,525 135,000 2012 695,000 690,900 135,000 2013 725,000 664,838 135,000 2014-2018 4,735,000 2,838,063 675,000 2019-2023 7,055,000 1,469,750 675,000 2024-2028 1,625,000 81,250 3,000,000 339,075 $ 16,795,000 $ 7,949,676 $ 3,000,000 $ 2,364,075 2005B Tax Bank of America Fiscal Increment Revenue Bonds Note Payable Year(s) Principal Interest Principal Interest 2009 $ 255,000 $ 428,840 $ 196,829 $ 108,008 2010 275,000 415,835 208,266 96,572 2011 285,000 401,810 220,367 84,470 2012 300,000 387,275 232,960 71,877 2013 310,000 371,975 246,708 58,129 2014-2018 1,815,000 1,597,523 829,412 85,048 2019-2023 2,330,000 1,038,187 2024-2028 2,225,000 269 ,223 $ 7,795,000 $ 4,910,668 $ 1,934,542 $ 504,104 TRG Boynton Beach, Ltd. Fiscal Note Payable Totals Year(s) Principal Interest Principal Interest 2009 $ 503,392 $ 49,311 $ 1,590,221 $ 1,475,859 2010 529,146 23,557 1,662,412 1,406,614 2011 182,331 1,903 1,362,698 1,337,708 2012 1,227,960 1,285,052 2013 1,281,708 1,229,942 2014-2018 7,379,412 5,195,634 2019-2023 9,385,000 3,182,937 2024-2028 6,850,000 689,548 $ 1,214,869 $ 74,771 $ 30,739,411 $ 15,803,294 20 BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENC'. (A Component Unit of the City of Boynton Beach. Florida I Notes to the Basic Financial Statements September 30. 200il 5. LONG-TERM LIABILITIES (Continued) The changes in long-term liabilities for the year ended September 30, 2008 are summarized as follows: Balance at Balance at Due within 10/0 1/07 Additions Deletions 9/30/08 one year Bonds payable $ 28,450,000 $ - $ (860,000) $ 27.590,000 " 890,00n Plus deferred amounts For discount (35,803 ) 1,989 (33,814) For issuance premium 680,081 "---_._--~_._-- (40,005) 640,076 Total bonds payable 29,094,278 (898,016) 211.196,262 1\90.000 Notes payable 3,814,043 (664,632) .1.149,4] ] 700,22 ] Compensated absences 67,917 33,046 ] 00,963 Total long-term liabilities $ 32,976,238 $ 33,046 $ (1,562,648) $ 31,446,636 $ 1,590,221 6. INTERFUND TRANSFERS During the fiscal year ended September 30,2008, the Genera] Fund transferred $3,960, I 06 and $3,065,538 1(1 the Projects Fund and Debt Service Fund, respectively. The transfers made to the Projects Fund was to fund the costs of ongoing redevelopment projects. The transfers made to the Debt Service Fund was to fund the annual debt service expenditures on the bonds and loans payable. 7. HOMEBUYER ASSISTANCE PROGRAM The Agency established the Homebuyer Assistance Program to assist local residents with the purchase of a home by providing a subsidy in an amount not to exceed $50,000 per homeowner. The subsidy is secured by a mortgage, which is required to be paid back only under certain circumstances outlined in the mortgage agreement. The mortgage is forgiven if the homeowner remains in the home during the full term outlined in the agreement. The amount of mortgages receivable outstanding at September 30, 2008 totaled $1,088, I 00 Given the nature of these loans, collection is uncertain, and therefore an allowance for uncollectib]e mortgages has been established at 100% of the value of the mortgages receivable outstanding. Consequently these mortgages are not recognized on the financial statements. 8. RISK MANAGEMENT The Agency is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets: errors and omissions; injuries to employees; and natura] disasters. The Agency purchases commercial insurance for the risks of loss to which it is exposed. Policy limits and deductibles are reviewed by management and established at amounts to provide reasonable protection from significant financial loss Settlements did not exceed insurance coverage for the current fiscal year. 21 BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Boynton Beach, Florida) Notes to the Basic Financial Statements September 30, 2008 9. COMMITMENTS AND CONTINGENT LIABILITIES A. Facade Grant Program The Agency established a Facade Grant Program in an effort to promote the redevelopment of existing businesses located in the City. The program offers businesses a $15,000 matching grant to improve the facades of their businesses. During the year ended September 30, 2008, the Agency closed and disbursed $57,105 in Facade Grants. B. Lease commitments The Agency leases a building under a non-cancelable operating lease. The lease terminates on May of 2009, with the option to renew for one year. Future minimum rental payments as of September 30, 2008 required by this lease are $4,000. Rental costs for the year ended September 30,2008 approximated $48,000. 10. RETIREMENT CONTRIBUTIONS The Agency participates in a 40 1 (a) defined contribution retirement plan and a 457(b) deferred compensation plan (the "Plans"). The Plans are qualified under Sections 401(1), 403 (a) and 501(a) of the Internal Revenue Code. The Plans are administered by independent trustees. All employees who meet the requirements are qualified to participate. Employees make voluntary contributions to the 457(b) plan. The Agency's required contribution is 5% of the total salaries of qualified participants. Employer contributions for fiscal year 2008 totaled $25,329. Employer contributions for the 401 (a) plan for fiscal year 2008 totaled $37,616. 11. RELATED PARTY TRANSACTIONS The Agency is a component unit of the City of Boynton Beach, Florida. For the year ended September 30, 2008, the Agency's tax increment revenues include $6,003,625 received from the City. In addition, the Agency reimbursed the City for certain costs such as recording and information technology services, landscape and maintenance services, festival expenses, fire and rescue, shared lobbying costs, and police services during the year. Total payments to the City for the year ended September 30, 2008, were approximately $731,000. 22 Required Supplementary Information BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Boynton Beach, Florida) Budgetary Comparison Schedule General Fund F or the Year Ended September 30, 2008 Variance with Final Budget- Original Budget Final Budget Actual Positive (Negative) REVENUES Tax increment revenue $ 9,500,000 $ 9,500,000 $ 9,520,342 $ 20,342 Charges for services 1,503,200 1,503,200 1,406,035 (97,165) Interest and other income 260,000 260,000 261.393 1,393 Total revenues 11,263,200 11,263,200 11,187,770 (75,430) EXPENDITURES General government 4,237,556 5.237,556 5,248,948 (11,392) Total expenditures 4,237,556 5,237,556 5,248,948 (11 ,392) Excess (deficiency) of revenues over (under) expenditures 7,025,644 6,025,644 5,938,822 (86,822) OTHER FINANCING SOURCES (USES) Carryover fund balance 1,000,000 (1,000,000) Transfers out (7,025,644) (7,025,644) (7,025.644) Total other financing sources (uses) (7,025,644) (6,025,644) (7,025,644) (J ,000,000) Net change in fund balances $ $ (J ,086,822) $ (1,086,822) Fund balances - beginning of year 7,775,929 Fund balances - end of year $ 6,689,107 The notes to the Budgetary Comparison Schedule are an integral part ofthis schedule. 23 BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENC'l (A Component Unit (lfthe City of Boynton Beach, Florid~l! Notes to the Budgetary Comparison Schedule September 30, 200R 1. BUDGETARY INFORMA nON The Agency is required to establish a budgetary system and an approved annual budget for the General Fund, Debt Service Fund and Project Fund. The Agency's budgeting process is based on estimates of cash receipts and cash expenditures which are approved by the Board. In accordance with generally accepted accounting principles, budgetary comparison infonnation is disclosed only for the General Fund The budget is adopted on the modified accrual basis of accounting, consistent with generally accepted accounting principles, with the exception of compensated absences. Compensated absences are budgeted only to the extent expected to be paid, rather than on the modified accrual basis. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board. The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. 2. EXCESS OF EXPENDITURES OVER APPROPRIA nONS For the year ended September 30, 2008, the Agency's general fund expenditures exceeded appropriations by $11,392. 24 COMPLIANCE SECTION I SKJ] &Co SANSON' KLINE JACOMINO & COMPANY, LLP Certified Public Accountants & Consultants 5805 Blue L<lgoon Drive Suite 220 Mi.ml, Floricl. 33126 rei. (305) 269-8633 "ax (305) 265-065:' ~\\:.."\, )l:! ',~"..L~_" Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards To the Board of Directors Boynton Beach Community Redevelopment Agency: We have audited the basic financial statements of the Boynton Beach Community Redevelopment Agency (the Agency), a component unit of the City of Boynton Beach, Florida, as of and for the year ended September 30,2008, and have issued our report thereon dated November 19,2008. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards. issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Agency's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Agency's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Agency's internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management OJ employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies. that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. 2." ~ SANSON KLINE JACOMINO & COMP~ LLP Certified Public Accountants & Consultants 5805 Blue l.4goon Drive Suite 220 Miami, Floriqa 33126 Tel. (305) 269-8633 Fax (305) 265-0652 www.skjnet.com Management Letter in Accordance with the Rules of the Auditor General of the State of Florida To the Board of Directors Boynton Beach Community Redevelopment Agency: We have audited the financial statements of the Boynton Beach Community Redevelopment Agency (the Agency), a component unit of the City of Boynton Beach, Florida, as of and for the fiscal year ended September 30, 2008 and have issued our reports thereon dated November 19, 2008. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters. Disclosures in those reports, which are dated November 19, 2008, should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida and, unless otherwise required to be reported in the report on compliance and internal controls or schedule of findings and questioned costs, this letter i~ required to include the following information. · Section 10.554(1 )(i) 1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report not otherwise addressed in the auditor's report pursuant to Section 1O.557(3)(b)2., Rules of the Auditor General. The status of prior year's findings and recommendations are included at Appendix A to this letter. · Section 1O.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the Agency complied with Section 218.415, Florida Statutes. · Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. Current year findings and recommendations are included at Appendix B to this letter. · Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address violations of laws, regulations, contracts or grant agreements, or abuse that have occurred, or are likely to have occurred, that have an effect on the determination of financial statement amounts that is less than material but more than inconsequential. In connection with our audit, we noted no such violations. 27 ~KJ I &Co '- Compliance and Other Matters As part of obtaining reasonable assurance about \vhether the Agency's basic financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations. contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to he reported under Government Auditing Standards. In addition, we noted certain matters, which we have reported to management of the Agency in our management letter dated November 19, 2008, as required by the Rules (?( the Auditor General of the State of Florida. This report is intended solely for the information and use of the board of directors, management of the Agency, the State of Florida Office of the Auditor General and other regulatory agencies, and is not intended to be and should not be used by anyone other than these specified parties. 11 ~ 1M, ~/ f ~ tAl November 19,2008 26 rsDl ~ · Section 10.554(1 )(i)5., Rules of the Auditor General, requires, based on professional judgment, the reporting of the following matters that are inconsequential to the determination of financial statement amounts, considering both quantitative and qualitative factors: (1) violations of laws, regulations, contracts or grant agreements, or abuse that have occurred, or are likely to have occurred; and (2) control deficiencies that are not significant deficiencies, including, but not limited to; (a) improper or inadequate accounting procedures (e.g., the omission of required disclosures from the financial statements); (b) failures to properly record fmancial transactions; and (c) inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor. In connection with our audit, we did not have any such fmdings. · Section 10.554(1 )(i)6., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financi.al statements. The official title and legal authority of the Agency is disclosed in note leA) to the Agency's financial statements. The Agency has no component units. · Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement be included as to whether or not the local governmental entity has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the Agency did not meet any of the conditions described in Section 218.503(1), Florida Statutes. · Section 1O.554(1)(i)7.b., Rules of the Auditor General, requires that we determine whether the annual financial report for the Agency for the fiscal year ended September 30, 2008, filed with the Florida Department of Financial Services pursuant to Section 2l8.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2008. The Agency does not file a separate report with the State of Florida Department of Banking and Finance. The financial operations of the Agency are included in the basic financial statements of the City of Boynton Beach, Florida for the year ended September 30, 2008. · Sections 1O.554(1)(i)7.c. and 10.556(7), Rules of the Auditor General, require that we apply financial condition assessment procedures. In connection with our audit, we applied financial condition assessment procedures. It is management's responsibility to monitor the entity's fmancial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. This management letter is intended solely for the information and use of the board of directors, management of the Agency, the State of Florida Office of the Auditor General and other regulatory agencies, and is not intended to be and should not be used by anyone other than these specified parties. YwH,/lw; ~:f ~t-0 November 19,2008 28 BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY Management Letter in Accordance With the Rules of the Auditor General of the State of Florida Year ended September 30, 200k Status of Prior Year's Findings and Recommendations Prior Year's Finding / Recommendation In the course of the audit we noted that wire transfers are not properly authorized by the Executive Director. All wire transfers should be handled as authorized by the Executive Director The Agency should have clear and concise documentation of the internal control structure in place, which should include how COSO's five elements of internal control are being addressed within the control structure. The Agency should institute a program to methodically identify and document its significant operational and accounting processes. Finding Has Been Properly Addressed x x A ppendh A Finding is StiU Relevant at 9/30/08 Appendix B BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Boynton Beach, Florida) Management Letter in Accordance With the Rules of the Auditor General of the State of Florida Year ended September 30, 2008 Current Year's Findings and Recommendations 2008-1 See:ree:ation of Duties Criteria/Specific Requirements All cash/check related transactions and processes should have proper segregation of duties. Condition Found During our testing of internal controls, we noted the following: · The Accountant who is responsible for preparing deposit slips (for any sponsorship checks and/or marina rent checks received), depositing the funds into the bank, and reconciling the bank accounts on a monthly basis, also performs the posting of such receipts to the cash accounts and the receivables subledger; and · The Accountant who prepares the monthly bank reconciliations also has access to petty cash. Perspective The condition noted is considered to be systemic in nature. Effect Without proper segregation of duties for cash/check related transactions and processes, increases the risk for potential misappropriation of cash. Recommendation Due to the size of the Agency's Finance Department, the Accountant's responsibilities are appropriate. However, to improve the Agency's internal control over cash/check receipts, we recommend that one individual be responsible for receiving all cash/check receipts (an individual not in the Finance Department). Any such cash/check receipts that are received by mail or in person, should be forwarded to this responsible individual. Prior to forwarding to the Accountant all such cash/check receipts received, the responsible individual should log in (into a spreadsheet for example) the cash/check receipt, noting the date, amount, payor, and a description of the transaction, if possible. That individual should reconcile the log of cash/check receipts, on a monthly basis, to the deposits made by the Accountant. Reconciliations should be printed and properly signed by the responsible individual preparing the reconciliation, and reviewed and signed by the Director of Finance. In addition, we recommend that the Accountant preparing the monthly bank reconciliations should not have access to petty cash. Responsibility for petty cash can be assigned to any other individual, within or even outside ofthe Finance Department. Management's Response It should be noted that the receipt of cash and checks are very limited and specific to the annual receipt of TIF payments, event sponsorship checks, Marina office rental payments and public records request payments. As recommended, management intends to assign an employee outside of the Finance Department with the responsibility for (1) receiving, logging, reconciling all check and cash receipts, and (2) petty cash payments and reconciliations. Management will implement this recommendation subject to appropriate staffing levels. \PI)cndi\ B BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Boynton Beach, Florida) Management Letter in Accordance With the Rules of the Auditor General of the State of Florida Year ended September 30. 200X Current Year's Findings and Recommendations 2008-2 Marina Operations - Fuel Sales Criteria/Specific Requirements Internal controls over the revenue process, including all revenues collected by third-party contractors. should be in place and working effectively. Condition Found The Marina owned by the Agency is operated by a management company currently under contract. The management company is responsible for handling the complete operations of the Marina, including collecting and depositing rent from tenants, as well as fuel sales. With regards to fuel sales, the Agency relies on the amounts reported by the management company. We noted that during fiscal year 2008 there was limited oversight regarding the amounts collected and deposited for fuel sales. The issue is whether the Agency can be reasonably assured that all collections for the sale of fuel is properly deposited into the Agency's account, and not misappropriated by the management company. With fuel sales reaching almost $1.2 million during fiscal year 2008, it is imperative that the Agency modify its existing process in place to help eliminate the risk of misstatements. Perspective The condition noted is considered to be systemic in nature. Effect The Agency has insufficient assurance that cash collections made by the management company art' accurate and complete. Recommendation The Agency does currently perform a monthly analysis of fuels sales as compared to cost of the fuel However, we recommend that the Agency perform an annual review of the management company's operations to determine that there are adequate internal controls in place and working effectively at the management company with regards to collections on fuel sales. In addition, we recommend that the Agency's Financial Consultant or Accountant perform a bi-monthly or, at a minimum, a quarterly detailed substantive review of collections on fuel sales, whereby, the Financial Consultant or Accountant makes a representative sample of selections of fuel sold and trace such transaction from collection to deposit t( I reporting. Management's Response As recommended: (I) an annual Procedural Audit of the Marina Operations will he implemented effective in FY 2008-2009, and (2) the Agency will undertake a bi-monthly substantive review of fuel sales collections. The Procedural Audit process is expected to be completed in the first quarter of 2009. Fuel sales collection testing and audit will also begin in early 2009. Appendix B BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Boynton Beach, Florida) Management Letter in Accordance With the Rules of the Auditor General of the State of Florida Year ended September 30, 2008 Current Year's Findings and Recommendations 2008-3 Police-Related Expenditures Criteria/Specific Requirements Section 163.387(6), Florida Statutes, provides that moneys in the Agency trust fund may be expended for undertakings of the Agency as described in the Agency Plan, including, but not limited to costs for the development of community policing innovations. Condition Found During our audit we noted that the Agency entered into an agreement with the City of Boynton Beach, Florida (the "City") on December 19, 2007 to pay the City the sum of: $45,455 for police equipment; $130,830 for police vehicles; and $8,784 for patrol bicycles. These amounts were invoiced by the City on December 28, 2007 and paid by the Agency on January 4,2008. Based on an audit of the Daytona Beach Community Redevelopment Agency performed by the State of Florida Auditor General, these types of expenditures were questionable as to whether such expenditures were authorized pursuant to Section 163.387(6), Florida Statutes. The aforementioned police-related expenditures can probably be argued that they fall under the classification of costs related to community policing innovations. Therefore, the main issue is whether these expenditures were incurred in accordance with the Agency's redevelopment plan. Based on our review of the Agency's Downtown Vision & Master Plan, which was approved in concept by the City Commission in April 2008, such plan described incurring costs of community policing in year 5 of the action plan. As a result, since the police-related expenditures described above occurred in December 2007, which was prior to the approval of the Downtown Vision & Master Plan and prior to the timeline of incurring costs of community policing described therein, the Agency may not have been in compliance with Section 163.387(6), Florida Statutes at the time the expenditures actually occurred. Perspective The condition noted is considered to be isolated in nature. Effect State regulators (e.g. the Auditor General's office) that request a review or audit of the Agency's records could determine that the Agency is not in compliance with Florida Statutes. Recommendation We recommend that, at a minimum, the Agency amend its Downtown Vision & Master Plan to properly account for the costs of community policing, and that management of the Agency formulate a strong argument that the aforementioned police-related expenditures are applicable to community policing innovations. We also recommend that going forward, any expenditures that the Agency's management foresees on incurring using tax increment funds, or has any questions as to its compliance, that they determine that such expenditures are in accordance with its redevelopment plans and with Section 163.387(6) Florida Statutes, prior to incurring such expenditures. .\ppendb, n BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY (A Component Unit of the City of Boynton Beach. Florida) Management Letter in Accordance With the Rules of the Auditor General of the State of Florida Year ended September 30, 2008 Current Year's Findings and Recommendations Management's Response Management has been attempting to resolve the conditions highlighted above regarding compliance pursuant to Section 163.387(6), Florida Statutes and has requested the assistance of Agency's legal counsel to mitigate compliance issues. With specific regard to the above recommendations. (I) "At a minimum, the Agency amend its Downtown Vision & Master Plan to proper!.v account.!cJ/' tht costs of community policing..." the suggested amendment will be brought before the Agencv Board at the December 9,2008 meeting. (2) "... that management of the Agency formulate a strong argument that the ajorementioned police related expenditures are applicable to community policing innovations." Management will work with the City's Chief of Police and Agency legal counsel to fonnulate the recommended policy. (3) .. ...that going forward, any expenditures that the Agency's management foresees on incurring using tax incremen t funds, or has any questions as to its compliance, that they determine that such expenditures are in accordance with its redevelopment plans and with Section] 63.387(6) Florida Statutes, prior to incurring such expenditures. .. - Management has requested an opinion from Agency's legal counsel on Section 163-387(6) related to compliance with such expenditures a:-- justification for budgeted expenditures and payments in FY 2008/2009. i I I I' I XII. NEW BUISNESS: :1 II B. CO..._.;.........'~..' '.ideratiOn of Request from Weiss Me~orial Chit. el for Use ofCRA Property' for Parking t ~ : r oj 0 i I I i i I i I I I I I I I I .I I ! i I I I I I I I I .. I I ! ~~~~Y~Te~ eRA . East Side-West Side-Seaside Rena',ssance eRA BOARD MEETING OF: January13,2009 I I Consent Agenda I I Old Business I X I New Business Legal Other SUBJECT: Consideration of Request from Weiss Memorial Chapel for use ofCRA Property SUMMARY: On December 15,2008, the CRA received a formal request (see attached letter) from Weiss Memorial Chapel for the use of the CRA-owned property located on NE 1 st Street. This property consists of a vacant lot which the chapel would like to use on a regular basis for visitor and merchant parking. Within the letter, Weiss Memorial Chapel also offers to pay a fee for use of this lot. FISCAL IMPACT: Expenses would be researched by staff, per direction of Board, to determine insurance requirements. Revenues are unknown at this time. CRA PLAN, PROGRAM OR PROJECT: N/A RECOMMENDATIONS: Provide direction to staff. LtbfkB6 Vivian Brooks Assistant Director T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Fonns by Meeting\FY 2008 - 2009 Board Meetings\l- 13-09 Meeting\Weiss Chapel.doc . Weiss mOl emorial Chapel December 15,2008 ,'lffnrdabll': 1/,<' 1171" Boynton Beach eRA 915 South Federal Highway Boynton Beach. F1. 33435 Attn: Vivian Brooks As per your conversation with Gloria Weiss about a week ago. I am writing you this letter 01 request. Weiss Memorial Chapel is located on the corner of NE I st Street and Boynton Beach Blvd. Directly behind LIS is a large piece of property. that would be perfect for parking, There is limited parking in the area and having a parking lot for visitors would greatly improve this area for merchants to thrive and do business. Ifthere would be a charge for parking Weiss would pay for their clients to park there, Please contact me at 56 I -737-00 1 to tell me how this matter can be taken care of. Sincere Iy . 'd'"/ ..-:' .,.....--,,~ -"~,-----.j-~~kW~iss Owner 202 E. Boynton Beach Boulevard . Boynton Beach, Florida 33435 (561) 737-0001 1-800-588-7118 Fax (561) 737-0550 www.weissmemorial.com RESIDENTIAL DWELLING LOT 10 BLOCK 3 LOT9 BLOCK 3' LOTS BLOCK 3 LOT 7 BLOCK 3 1 \ .' U.P. . 20do'~ 'F. 1121'l:~. O.#6\.'S m.tO'!:' i , !/ Gfl~LL ,I ~ SOUTH HALF OF LOT It BLOCK 3 (NOT INCLUDED) SOUTH HALF OF LOT 12 BLOCK 3 (NOT INCLUDED) \ SET 1/2" . .. .g. I.R.lCAP r----c--. 70 t'B#7463 l : .' 70 I. . ~O'" r. 44 ~ , ~ CONCRETE ~ :. PAD ; - \ . '. ; LO ,.J <;" ~ ~~ ~ ..' -:.. " C"') I' '. c:.o L 4- I I I I~ ,ancel I \ .g7'. 7d> ?o" \ II .970'~ 0, <.:'0. I I J U.l I::1I~Cl ~Ii:~ Ul\O~ (:) ~a. Z CI:;: ("1 a:z .b=> t.I.]1"" ZI U.P 'lli ;. NORTI:lHAl.FOF \.- . . :LOt.l.2 BLOCK'a' .:~ . (tNctuOED) .:Itt: .. 1(' : ." "".AS~HAl.~?AifING'" r:':", . "~':~-I-'- --:-t~'-- . LOT 13 eRA Ownelf LOT 14 BLOCK 3 to '" co? w .g ~ , v ACANT SET 1/2" --..:. 70 0 $--~ \ ""0", 9;) I I it I.R.lCAP "0.. qJ / I 62.00' 50.00' LB#7463 50.00' .00' F. 1/2" I.R. I I ..... 20])0' ';. _ _ L .. =-== _ _ _ _ N.E~ lSf_A~Nlm=~r -t-~= =-=----===----=-= :: ~ ~ 1- ,'"-. 132.00' 40' RIGHT OF~ --...... 132.0or--- '. - F. PKlDISI< IMPROVED . to N 'co? W 1~ .... I~ I 20 ~ \ NOTES: i. LEGAL DESCRIPTION PROVIDE BY CLIENT 2. NO SEARCH OF THE PUBLIC RECORD FOR THE PURPOSE OF ABSTRACTING TITLE WAS PERFORMED BY THIS OFFICE 3. NO SUBSURFACE IMPROVEMENTS WERE LOCATED AS PART OF THIS SURVEY ~f ""I,'-"~"'" ;>'~'T"" '"'1....-.-.....'..........,.... .......,.-..,..., .,,,-~,-,,,,,,,~ .~.-._~-.. ------ XII. NEW BUS~NESS: . ' , . ~. . B~ynt~p Women'si Club Request for Don~~ibn for th~ i: . Club's tooth Year Celebration · II /1 , ~~~<tY~Te~ICRA . East Side-West Side-Seaside Renaissance eRA BOARD MEETING OF: January 13,2009 I I Consent Agenda I I Old Business I X I New Business Legal Other SUBJECT: Consideration of Boynton Woman's Club Request for Donation to the Club's 100th Year Celebration SUMMARY: CRA Special Events Director, Kathy Biscuiti, was contacted by the Women's Club for help in distributing the Event's media advisory to local press on behalf of the Women's Club (Tab 1). This "in-kind" service to the Women's Club was provided in exchange for the CRA to be acknowledged on the event invitation, i.e. sponsor. Subsequently, the CRA Director received a request from the Woman's Club for a financial donation to support their 100th Year Celebration to be held on January 25,2009. Attached is a letter from the Club's president, Dorothy Moore (Tab 2). Also attached is the invitation for the event (Tab 3). Ms. Moore's financial request was slated to appear on the January "Consent Agenda" for board approval. On December 18th, Board member Rodriguez contacted me via email that it had been brought to his attention the CRA was working with the Women's Club on its 100th Anniversary celebration. He was concerned the CRA was committed fmancially as well as the agency's marketing and special events media list was being used to promote the event (Tab 4). I responded I had placed this request on the January agenda (Tab 5). Board member Rodriguez was not satisfied with my response and demanded an immediate explanation via email (Tab 6). His email dialog reflects an innuendo of improper handling of the funds being committed along with a specific concern of an improper relationship: "a personal family relationship between your Assistant Director and a Woman's Club member" (Tab 7). Please refer to the November 1, 2006 CRA Board adopted Resolution 06-02 to address requests for community sponsorships. Resolution 06-02 authorizes the Executive Director to forward all requests to the Board prior to disbursement (Tab 8). As far as Vivian Brooks' improper relationship with a member of the Women's Club, please refer to the public record of March 13, 2007 whereby Ms. Brooks disclosed, Lillian Ostiguy, is her mother and past president of the Women's Club (Tab 9). Please recall at the November 5th CRA meeting, Board member Rodriguez stated his refusal to meet with the Executive Director and/or her staff to handle routine operational questions and advised all l.gency concerns requested by him would be dealt with in the public realm. His request for me to 'iress the Women's Club Event in an email is in direct conflict with his previous direction (Tab 10). CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by Meeting\FY 2008 - 2009 Board Meetings\!- 'oman's Club010709 final.doc In closing, one of Board member Rodriguez's concerns was the use of the agency's media list to promote the Women's Club Event. Please know on election eve, November 3,2008, Board member Rodriguez made a similar request for a copy of the CRA's media list from stafI Executive Director Lisa Bright did not have this information and directed him to Margee Walsh, CRA Marketing & Communications Director, who provided the requested information (Tab 11). Board member Rodriguez never disclosed the nature of his request and how the agency's business would be furthered or how the agency would receive benefit as outlined in accordance with Board approved Rules of Governance (Tab 12). FISCAL IMP ACT: $700.00 CRA PLAN, PROGRAM OR PROJECT: Community Sponsorship - Resolution 06-02 RECOMMENDATIONS: Provide financial support to the Woman's Club to conduct their loath Year Celebration in the amount of $700. 0" J.- J. tor T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by Meeting\FY 20G 13-09 Meeting\Woman's Club. doc .-" -:. v"<:" q,5 >~ ~O Ct- ';P: '$,'1' ~ ?' 0- r ~ TAB 1 T:\ADMINISTRATIVE\Templates\Tab Pages.doc RESOLUTION NO. 06 - 02 A RESOLUTION OF THE BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, TO SET THE LEVEL AND METHOD OF COMMUNITY SPONSORSIDP AMOUNTS THE CRA BOARD WILL ALLOW BEGINNING NOVEMBER 01, 2006; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, CRA Board wishes to set guidelines for any request for community sponsorship funded by the Agency; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY: SECTION 1. CRA authorizes the Executive Director to forward all requests for community sponsorship to the Board prior to disbursement, and that all approved requests adhere to the guidelines in Section 2. SECTION 2. All such requests deliver a program and/or service within the CRA district. Programs, services and events must be related to the mission and principles of the CRA in that they promote economic development within the CRA district and/or benefit residents of the Boynton Beach CRA. Programs and services benefit the community redevelopment area. The Board may choose to alter these parameters at their discretion. SECTION 2a. The maximum amount of any charitable sponsorship is $1,000 per agency or organization during any calendar year. SECTION 3. If any clause, section, other part or application of this Resolution is held by any court of competent jurisdiction to be unconstitutional or invalid, in part or application, it shall not affect the validity of the remaining portions or applications of this Resolution. SECTION 4. EFFECTIVE DATE This resolution shall become effective immediately upon its passage and adoption. Board Member NOREM offered the foregoing Resolution and moved its adoption. The motion was seconded by Board Member MYOTT and upon being put to a vote, the vote was as follows: 1 HENDERSON TILLMAN, Chair STORMET NOREM, Vice-Chair JEANNE HEA VILIN, Board Member GUARN SIMMS, Board Member LANCE CHANEY, Board Member MARIE HORENBURGER, Board Member STEVE MYOTT, Board Member The Chair Person thereupon declared this Resolution approved and adopted by the CRA Board of the Boynton Beach Community Redevelopment Agency, Boynton Beach, Florida, this _14h_ day of November, 2006. By: Henderson Tillman, Chair Person BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY Legal in form and valid if enacted: Kenneth Spillias CRA Attorney 2 BOYNTON WOMAN'S CLUB Media contact: Lillian Ostiguy Anniversary Open House Chair (561) 704-7187 Lillian33435@aol.com FOR IMMEDIATE RELEASE December 9,2008 MEDIA ADVISORY WHO: Boynton Women's Club, Inc. {www.bovntonwomansclub.com} The Boynton Woman's Club is an Addison Mizner historic building designed in 1924. WHAT: Centennial Celebration, open house to commemorate 100 years of dedicated community service. Activities include property tours, light refreshments, an acknowledgment ceremony, and special performance by jazz pianist extraordinaire Copeland Davis. WHEN: January 25, 2008, from 2:00 p.m. to 6:00 p.m. 3:00 p.m. Copeland Davis performs WHERE: Boynton Woman's Club 1010 S. Federal Highway Boynton Beach, Florida 33425 This event is free and open to the public. Photos available upon request. ### TAB 2 T:\ADMINISTRA TIVE\Templates\ Tab Pages.doc ~~ CW~SI ~~ <Bno. CfJJ. <0. 9?J(MeI 1135 9?J~ 9?J~, cg9}, 33425 .l..tJ. 1010 S. Federal Hwy. 561 369-2300 e-mail bwc1909@aol.com website www.boyntonwomansclub.com An A~design On the National Register of Historic Places ... ) December 1,2008 Ms. Lisa Bright, Director Boynton Beach C.R.A. 915 S. Federal Highway Boynton Beach, Fl. 33435 Boynton Woman's Club Centennial Dear Lisa, The Woman's Club will be celebrating 100 years of serving our community in 2009. Over those years we have given scholarships to deserving students from Boynton Beach, opened the first library in the city, and provided a place for non-profits to hold events, i.e. Historic Society, neighborhood associations, Boynton Beach Garden Club, Chamber meetings and many more. Our members have worked to raise funds for many charities. Locally the Community Caring Center, Caridad Center, Bethesda Hospital, Edward Healy Nursing Home, Vietnam Veterans, and many charities through the Florida Federation of Woman's Clubs and the General Federation of Woman's Clubs. We are planning an Open House on January 25,2009 to kick off our 100th celebration. We wish to thank the community for its continued support of our club fundraisers and building renovations over all those years. A long range renovation project that included, painting inside and out, new roof, several new air conditioners, new chairs and tables and many small projects was recently completed. These were only accomplished with the help of the following: City of Boynton Beach Boynton Beach C.R.A. Member of the General Federation of Women's Clubs Member of the Florida Federation of Women's Clubs District 10 Member of the Greater Boynton Chamber of Commerce Palm Beach County Mizner Foundation Lattner Foundation Historic Society of Boynton Beach We hope to express our gratitude with this open house. Copeland Davis has been reserved to entertain, an actor will be portraying Addison Mizner and members will be giving tours of the building, light refreshments will be served, donated by various caterers from our area. Would the C.R.A. consider helping us with the publicity for this project and possibility assistance with the cost of Copeland Davis's appearance? This help would enable us to promote this event properly and allow the financial assistance to bring special entertainment to this wonderful occasion. Thank you for considering this request. Sincerely , f) .7Jl~ D~re, President TAB 3 T:\ADMINISTRATIVE\Templates\Tab Pages. doc \ \ \1 ~ . 1 ~ l it 1, 1 . 1lO. (\. ~ ~ .! 1lO)\ ~ ~ . l..:!. ~ -l 0.\ l~ \1 ~~ , !l ~ 1~ ~ ll~~ !~ ~ 1"" ~~ 1. '% ~.~ 1 ~ t ~ 1 ~ ~ - TAB 4 T:\ADMINISTRATIVE\Templates\Tab Pages. doc -----Original Message ----- From: jreguez@aol.com To: brightl@ci.boynton.fl.us Cc: hayw@bbfl.us; RossM@bbfl.us; TaylorJ@bbfl.us; WeilandR@ci.boynton- be ach.fl.us <mailto:WeilandR@ci.boynton-beach.fl.us> Sent: Thu, 18 Dec 2008 2:08 pm Subject: Womans Club It has come to my attention that the CRA is working with the Woman's Club on it's 100th anniversary celebration. Both contributing financially and using our marketing and special events resources. I don't recall this event coming before the board or being part of our budget. Can you help me understand the scope, including financial and human resources being offered ? and finally where in the budget has this been allocated. Regards, Jose Rodriguez TABS T:\ADMINISTRATIVE\Templates\Tab Pages.doc Fro~: Br~G~~, ~~sa <Br~ght~@~j~:.~s> To: Tay:o;, Jerry <TaylorJ@t~f:.u3>; jreguez@aol.com; Hay, Woodrow <hayw@bbfl.us>; Ross, Marle~e <RossM@bbfl.us>; LeJeune, Carisse <LeJeuneC@bbfl.us> Sent: Fri, 19 Dec 2008 10:27 am Subject: R~: Womans C:ub ~ I placed this request on the January agenda. -----Original Message ~---- From: jreguez@aol.com To: brightl@ci.boynton.fl.us Cc: hayw@bbfl.us; RossM@bbfl.us; TaylorJ@bbfl.us; WeilandR@ci.boynton- be ach.fl.us <mailto:WeilandR@ci.boynton-beach.fl.us> Sent: Thu, 18 Dec 2008 2:08 pm Subject: Womans Club It has come to my attention that the CRA is working with the Woman's Club on it's lOOth anniversary celebration. Both contributing financially and using our marketing and special events resources. I don't recall this event coming before the board or being part of our budget. Can you help me understand the scope, including financial and human resources being offered ? and finally where in the budget has this been allocated. Regards, Jose Rodriguez TAB 6 T:\ADMlNISTRATIVE\Templates\Tab Pages.doc -----Original Message----- From: jreguez@aol.com <jreguez@aol.com> To: Bright, Lisa; Taylor, Jerry; Hay, Woodrow; Ross, Marlene; Weiland, Ronald; jcherof@cityatty.com <jcherof@cityatty.com> Sent: Mon Dec 22=2 014:29:10 2008 Subject: Re: Womans Club Since i was told that funds have been committed by the CRA staff and that staff is already working on the project, I would respectfully request the information now... It would seem that bringing it to the board at this point would be after the fact.. .thanks... Jose -----Original Message----- From: Bright, Lisa <BrightL@bbfl.us> To: Taylor, Jerry <TaylorJ@bbfl.us>; jreguez@aol.com; Hay, Woodrow <hayw@bbfl.us>; Ross, Marlene <RossM@bbfl.us>; LeJeune, Carisse <LeJeuneC@bbfl.us> Sent: Fri, 19 Dec 2008 10:27 am Subject: RE: Womans Club I placed this request on the January agenda. From: jreguez@ao1.com [mailto:jreguez@aol.com <mailto:jreguez@aol.com?> ] Sent: Thursday, December 18, 2008 2:46 PM To: Bright, Lisa Subject: Fwd: Womans Club TAB 7 T:\ADMINISTRA TIVE\Templates\ Tab Pages. doc -----Original Message----- From: jreguez@aol.com <jreguez@aol.com> To: Bright, Lisa CC: Weiland, Ronald; Ross, Marlene; Hay, Woodrow; Taylor, Jerry; Cherof, James Sent: Mon Dec 22 23:02:59 2008 Subject: Re: Womans Club It has now been brought to my attention that there is a personal family relationship that exist between your Asst. Director and the present/past president/board member of the woman's club. Can you please clarify and disclose that relationship to the board. I would suggest that donating dollars to an organization is not an act of procurement. Procurement is the act of purchasing. The CRA is not buying anything here to run it's operations. Donating tax payer dollars without the boards approval is not procurement, it's donations. I'm sure the boards intention was never to allow you to donate tax payer dollars to any organization at your discretion without prior board approval. I would request that the procedure be brought forward for discussion and review. Regards, Jose TABS T:\ADMINISTRATIVE\Templates\Tab Pages.doc Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida November 14, 2006 Ms. Heavilin asked if in the future the eRA boundaries could automatically be updated on annexation requests. Ms. Brooks replied they discussed this with City staff and the eRA boundary adjustment would become part of the application package for annexation requests. Ms. Horenburger thought the City could change the boundary ahead of time. Ms. Brooks was not sure why the City did not do ttlat. It was possibly because if it waS not in the City, it could not be in the CRA. Ms. Horenburger asked whether the City could do an overlay. Ms. Brooks spoke to the Property Appraiser, who stated if the property was not in the City, It could not- be in the CRA. Ms. Horenburger thought an overlay would make it automatic on anything annexed into the City. Attorney Spillias commented the requested action was for the board to recommend the City change the boundaries. 1iIlWIiI11:k ~~"Qfft. r14ovedt6_~c;f,_CAA boundaritS be changed per the dl8Cussteh. Mr. ~ Slkended the mdtiontmtf passed 1.-0. F. Resolution 06-02 - R€9arding SoonsorshiD Funding Mr. Sims mentioned on page two of this document, his name had been misspelled. It was spelled Gam Simms and it should be Guam Sims. Reverend Chaney commented there was one "N" in his name and not two. Ms. Horenburger took issue with the term "Identifiable population" in Section 2. Was it meant to cover more than just festivals and street fairs? Mr. Reardon stated it would cover any special program they did. Ms. . Bright added If they wanted to sponsor an event in the Heart of Boynton area that would affect the Children's Youth board, for example, it would give the board more latitude. Ms. Horenburger did not want to see it in a way that every event always had to have a specific impact on a specifically identified population. Mr. Reardon would work on it to modify It. Mr. Myott noted the next statement said the board could alter the parameters at its discretion. Ms. Horenburger stated that would mean it would have to come back to the board before doing an event. Motion Vice Chair Norem moved to approve Resolution 06-02 with the grammatical corrections that were made. Mr. Myott seconded the motion that passed 7-0. G. Update on Rve Towns College Reverend Chaney asked if there was a timeline for progress on this. Ms. Bright stated they were having another negotiation on the day following this meeting. It had been held up due to a lack of local legal counsel to work with the CRA's counsel. That person would, however, now be coming in for the meeting. Mr. Myott asked how their finances were holding up. Ms. Bright indicated they wanted to get the agreement in place and were trying to get the $800K bond. The current architect is saying it is about an $8M renovation and that was what they stated the night they won the award. She spoke to the City Manager who was to start working with Ms. 17 TAB 9 T:\ADMINISTRATlVE\Templates\Tab Pages.doc -----Original Message----- From: jreguez@aol.com <jreguez@aol.com> To: Bright, Lisa CC: Weiland, Ronald; Ross, Marlene; Hay, Woodrow; Taylor, Jerry; Cherof, James Sent: Mon Dec 29 21:06:11 2008 Subject: Re: Womans Club Thank for the information on the second item of the email. The first item was not addressed. It asks to please disclose personal family relationships that exist between CRA staff and the Woman's Club. Thank You... Jose Rodriguez -----Original Message----- From: Bright, Lisa <BrightL@bbfl.us> To: jreguez@aol.com Cc: Weiland, Ronald <WeilandR@bbfl.us>; Ross, Marlene <RossM@bbfl.us>; Hay, Woodrow <hayw@bbfl.us>; Taylor, Jerry <TaylorJ@bbfl.us>; Cherof, James <CherofJ@bbfl.us>; Brooks, Vivian <BrooksVi@bbfl.us>; Harris, Susan <HarrisSu@bbfl.us> Sent: Mon, 29 Dec 2008 7:31 pm Subject: Re: Womans Club Dear Board, As stated previously, this item is on the January agenda. In my capacity as CRA Director for the past three years the procurement policy has given the Executive Director position the authority to execute such items of this nature or items under the Executive Director's purview under 10,000 without board approval. Historically, this has been accepted practice for the Executive Director's position--it has no bearing that I am personally the incumbent. This policy has been in place prior to my appointment. In fact, the auditor will be speaking to this very issue at the January board meeting. Since we publicly discussed and reviewed the "procurement policy" a nd provided "Training Books" as take-home tools at the January 14, 2008 Board Workshop, this is my first time hearing that the financial authority given to the Executive Director position is in question; especially since our policy is modeled after the City's policy for the City Manager. Lisa Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida March 13, 2007 Vice Chair Norem asked if the CRA was charging market rent the public would expect to pay for that property. The CRA was not and it was noted the CRA was disrupting the businesses there for a good public purposes. Mr. Myott discussed there was nothing wrong with giving a break with the expectation that when the bathroom was complete they would go market rate. This was an interim lease. Motion Mr. Myatt moved to proceed with the lease as written. Ms. Horenburger seconded the motion and clarified the motion as there were no taxes on the interim lease effective from April 1st for one year and then renegotiate the lease well in advance of the expiration of the lease. It was noted the leases did not need to be advertised. ~ The motion unanimously passed. IX. New Business: A. Consideration of Purchasing the Women's Club Ms. Brooks explained the CRA was considering the purchase of the above. An appraisal was received and she spoke with the Palm Beach County Historical Society. This was a good opportunity for the CRA. Motion Vice Chair Norem moved to direct staff and legal to make preparations for this. Ms. Heavilin seconded the motion for discussion. There was discussion on where the funds for the purChase were coming from. Mr. Reardon explained the General Fund would be receiving reclaimed monies shortly. Ms. Bright clarified a time lapse occurred on the pro forma for 500 Ocean Plaza and other developers were interested in partnering on the project. The Direct Incentive Funding Agreement (DIFA) appropriated would not fund the gap in the market conditions. CRA counsel needed to draft a letter advising the $2M set aside would return to the CRA. Parking for the facility was previously accommodated by the Senior Center parking through an arrangement with the City. Ms. Brooks hoped that arrangement would continue. -Ms..8rOOkS ."anMounced her mother was a I't'fE!fnber and past p...stdent Of the Women's Goo. ' Mr. Reardon reiterated, moving forward the board should not spend bond monies up front. There was additional discussion this was a cultural opportunity for small venues and another opportunity to obtain land on Federal Highway. 11 TAB 10 T:\ADMINISTRATlVE\Templates\Tab Pages. doc -----U~lg~n~~ ~e~bayc From: Bright, Lisa <BrightL@bbfl.us> To: jreguez@aol.com; Taylor, Jerry <TaylorJ@bbfl.us>; Hay, Woodrow <hayw@bbfl.us>; Ross, Marlene <RossM@bbfl.us>; Weiland, Ronald <WeilandR@bbfl.us>; Jcherof@cityatty.com Sent: ~on, 22 Dee 2008 8:35 pm Subje9t: Re: Womans Club Dear Board, At the November 5th CRA Board Meeting, Board Member Rodriguez stated that he was unwilling to discuss items of an operational nature with me during the regular course of business. He reported it was his intention that the items would continually be brought forward for public discussion at the CRA meetings. Other board members expressed the benefits they received by discussing such items with the Executive Dir. for clarification were more practical to be done one-on-one with the Executive Director, he reiterated he was unwilling to do so and that everything would be discussed at meetings. Even though it is contrary to the direction he provided at the November 5th mtg, I will respond now. Around mid-September the Woman's Club approached Kathy Biscuiti with a request for participation by the CRA for their 100th Anniversary Celebration.& nbsp; Kathy stated they requested help with a 700 dollar request for their entertainment at the event scheduled on January 29th. This dollar amount is well under the board approved procurement policy authorized for the Executive Director position. If you recall all of these details were discussed earlier this year at the January Board Training Workshop in Fort Lauderdale. Board Member Rodriguez left the event around lunchtime and procurement was discussed thereafter. Susan Harris and I have not reviewed these materials with Board Member Rodriguez as of today's date. Nevertheless, this will be an agenda item for the January 13th mtg which falls more than two weeks before the January 29th Celebration giving the Board the opportunity to override my authority and not support this event. As far as the "staff resources" comments made by Board Member Rodriguez, I will be forwarding an additional email to answer those statements. Meeting Minutes Community Redevelopment Agency Board Boynton Beacht Florida November 5t 2008 Mr. Hay confirmed with Ms. Harris that the funds were budgeted. Ms. Harris indicated the position did not appear on the organizational charts and was considered professional services personnel costs. Vice Chair Rodriguez's concern was the Board had been misled regarding the elimination of the position during the budget cycle and the budgeted funds were specified for use in an emergency, such as the Family Leave. Mr. Weiland could not agree the Board had been misledt but minutes could be reviewed or verbatim excerpts could be requested. He repeated if the monies were budgeted he would agree with two months to complete the special project. Mr. Weiland requested that the matter be researched so there would be no confusion. Vice Chair Rodriguez suggested the Board reaffirm that the position be eliminated. Mr. Weiland wanted to resolve any and all confusion and accusations. Vice Chair Rodriguez inquired if the CRA Attorney had any knowledge of the files being discussed. CRA Attorney Cherof believed they were legal files that were dormant and kept by the previous Board Attorney. Mayor Taylor clarified there were boxes of flies in the previous Attorney's office that were not accessible. Space was made available and the flies could be organized for future reference. The organization of the files did have to be accomplished at the direction of the Executive Director. Ms. Bright explained her responsibilities and the rules that govern the Agency dictate the Chair as her superior. She pointed out Vice Chair Rodriguez was the only member of the Board that did not have a standing meeting with CRA staff to discuss his concerns with continued operational frustrations with her and staff. She would like better communication between herself and Vice Chair Rodriguez. The project with the files had been fully discussed with Chair Taylor. She suggested regular meetings with Vice Chair Rodriguez with either herself or Ms. Brooks would give him a better understanding of the operations in the Agency. It was a business decision not to fill the open position. Vice Chair Rodriguez commented it was an Executive Board and his position was every discussion should be done in a public setting. Discussions should not be held behind closed doors with individualst rather openly and publicly. He felt everyone should hear the same thing to make informed decisions. Mayor Taylor contended it was not practical and he had meetings every week with the City Manager to go over many things that were not official. Not every problem can be solved in two week Intervals. Vice Chair Rodriguez reiterated his position that he would not have discussions behind closed doors with the Executive Director. 4 TAB 11 T:\ADMINISTRATIVE\Templates\Tab Pages.doc !!:!iIht, Lisa From: lnt: "0: Bright, Lisa Monday, December 22,20088:58 PM Taylor, Jerry; 'jreguez@aol.com'; Hay, Woodrow; 'woodrowhay@msn.com'; Ross, Marlene; Weiland, Ronald 'Jcherof@cityatty.com' Fw: Request For Media List Cc: Subject: As per my previous email, Kathy Biscuiti stated she spent less than 10 minutes of her time assisting the Women's Club with their Media Advisory for their 100 year Celebration. This is a significant community based event of importance for both the Historic Addison Mizner Building and Women's Club contributions to the City over the past 100 years. Please read the email response below from Margee to Jose. At about 4:00 in the afternoon on the night of election eve, November 3, 2008, Board Member Rodriguez contacted me because he was unable to reach Margee. He was trying to secure a copy of the agency's media list. I advised him that I thought Margee had left for the day, but I would assist him. At no time, did I question his need for the media list or refuse to use CRA staff resources to accommodate his last minute request. As you can see from Margee's response she attempted to meet his deadline of "immediately" in order for him to accomplish whatever personal or political reason he requested the media list for. Since we will be discussing the Women's Club's request for assistance and funding at the January meeting, I would like the Board to address Board Member Rodriguez's personal ~equest for staff's assistance as well. Sent from my BlackBerry Wireless Handheld (www.BlackBerry.net) -----Original Message----- From: Walsh, Margee To: Bright, Lisa; 'Ibbright12@aol.com' <Ibbright12@aol.com> Sent: Mon Dec 22 11:36:13 2008 Subject: Request For Media List FYI: My emails to JR after he requested a copy of my Media List on November 3, 2008. Margee Walsh CRA Marketing and Communications Director o (561) 737-3256, ext. 204 C (561) 685-8883 www.boyntonbeachcra.com com: Walsh, Margee ~ent: Monday, November 03, 2008 6:16 PM To: 'jreguez@aol.com' Subject: This should work... 1 (BradBennetr@browardtimes.com) ,:..o:Uid2.ennett@blC\"or t.imes, ~'Cll. (communitynews@sun-sentinel.com) COITLTnuni t ynews@sun-sent:ine (' (gpettit@bizjournals.com) gpettit@biZ-'iOUl'iO S ('Oll' (lwherald@bellsouth.net) lwherald@beLLse,')t . net (Shalise.DeMott@milesmedia.com) Sha1 ise. Dei1ott@milesrnedia ,'C,f:[ Bill Finley (srlife@gate.net) srlife@gate.net SenJ.or Life Catherine Bcchte (CBochte@pbpost.com) CBnchte@pbpost.COl Clair Woolley (Clair.Woolley@uli.org) Clair.Wcolley@ull.ora Dan Scapusio (dscapusio@sun-sentinel.coml dscapusio@sun-sentinel.com David Weir (sfbreport@comcast. net) s fbrepc,rt@corncast ,Let <rnailto:sfbreport@comcast.net> WXELT' Don Jordan (DJordan@pbpost.coml DJordan@pbpost.com Doug Phillips (dphillips@sun-sentinel.com) dphillips@sun-sentinelcom Erika Pesantes (epesantes@SunSentinel.com) epesantes@SunSentinel. CUll. J. P. Hervis (jhervis@hearst.com) jhervis@hearst.com Jennifer Heit (editor@waterfront-news.com' eaitor@waterfront-news.com Jesse Pounds (jpounds@pbpost.com) jpounds@pbpcst.COll Jon Howe (jonhowe@clearchannel.com) jonhowe@clearchanneJ .c~m John Bachman (j bachrnan@wflx. com) j bachrnar,@vJflz. COlll John Favole (jjfavole@wptv.com) jjfavole@wptv.com John Fine (johncfine2@juno.coml iohncfine2@juno.com Juan Ortega (jcortega@sun-sentinel.com) C cortega@sun-sent.ine . "'ll Kari Barnett (kabarnett@tribune.com) kabarnett@tribune.com Ken Millman (editor@wavesf.com) edi tor@wavesf. CorIl Liz Quirantes (lquirantes@cbs12.com) lquirantes@cbs12.com Lucy Reed lucy@the-triton.com Marci Shatzman (mshatzmsn@sun-sentinel.com) mshatzmsn@sun-sentinei.com Matthew Gulf (matthew.gull@worldpub.net: matthew.gull@woridpub.net richard.westlund@earthlink.net richard.westlund@earthlink,net Rothman, [vjike mkrothman@tribune. corn Stacy Singer (ssinger@pbpost.com) ssinger@pbpost.cC% L '3rgee Walsh CRA Marketing and Communications Director o (561) 737-3256, ext. 204 C (561) 685-8883 www.boyntonbeachcra.com <http://www.boyntonbeachcra.com> From: Walsh, Margee Sent: Monday, November 03, 2008 5:39 PM To: 'jreguez@aol.com' Subject: Media Distribution List HI Jose, Attached is my list of local media. The following individuals are television reporters: David Weir: WXEL John Bachman: WFLX Liz Quirantes: Local CBS ')hn Favole: WPTV You may also want to contact Wayne Segal for his list_ Have a great night, Margee Walsh CRA Marketing and Communications Director o (561) 737-3256, ext. 204 C (561) 685-8883 www.boyntonbeachcra.com <http://www.boyntonbeachcra.com> 3 TAB 12 T:\ADMINISTRATlVE\Templates\Tab Pages.doc BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY RULES OF GOVERNANCE I. CRA BOARD A. Scope of Duties. The CRA Board shall be the governing body of the CRA and is responsible for the legislative and policy functions. The Boynton Beach CRA Board's scope of duties are as set forth in Chapter 163, Part III, Florida Statutes and the Ordinances of the City of Boynton Beach, as amended from time to time. B. Meetine: Procedures. Board meetings shall be conducted according to procedures enacted by the Board. In the absence of Board-enacted procedures, Board meetings shall be governed by Robert's Rules of Order. C. Conflicts of Interest. CRA Board members shall at all times conduct themselves in compliance with the conflict of interest requirements as set forth in Chapters 163 and 112, Florida Statutes, as well as any other applicable State statutes and City ordinances. D. CRA Expenditures. CRA funds may only be expended in furtherance of the CRA's mission and duties as provided for in the Florida Statutes and City ordinances. To that end, the following shall apply: 1. The Board shall, as required by law, prepare and enact an annual budget reflecting all anticipated revenues and expenditures. 2. Expenditures not specifically reflected in the budget or otherwise falling within the category of budgeted normal operating expenses, shall require Board approval at an official regular or special Board meeting. 3. Board members and, when appropriate, staff shall be entitled to reimbursement of expenses incurred in the course of official CRA business subject to the following: (a) Such reimbursement shall be in compliance with relevant state and city laws and ordinances, consistent with audit findings of any regular or special audit commissioned by the CRA board, Boynton Beach City Commission or other governmental entity, and pursuant to any Board adopted policies and procedures; (b) Such reimbursement shall be subject to reporting and submission requirements as established by the Executive Director or his/her authorized designee for implementation of Board adopted policies and procedures or, in the absence of such Board adopted policies and procedures, as determined by the Executive Director; 4. Board members shall restrict their use of CRA offices, telephones, business machines or other properties to the sole purpose of conducting CRA business or addressing CRA matters or concerns. All other uses shall be permitted only in accordance with CRA policies and procedures and subject to reimbursement to the CRA of the actual cost or value of the non-eRA related use of such services or properties. E. Miscellaneous. II. ADMINISTRA TION A. The CRA Board, by majority vote of its membership, shall appoint an Executive Director who shall serve at the pleasure of the Board. The Executive Director shall be appointed on the basis of executive and administrative qualifications as established by the Board. The compensation and benefits of the Executive Director shall be determined by the Board. The Board shall annually review the Executi ve Director's performance. The Assistant Executive Director, in the absence of the Executive Director. shall perform the duties of the Executive Director during his/her temporary absence. Should the position of Assistant Executive Director not be filled, the Executive Director shall designate an individual who shall perform the duties of the Executive DirectOl during his/her temporary absence. B. The Executive Director shall be responsible to the CRA Board for the proper administration of all affairs of the CRA coming under his/her jurisdiction and to that end the Executive Director's powers and duties include: 1. To see that the policies and directives of the eRA Board are enforced. 2. To administer and manage the day to day operations and activities of the CRA. 3. To prepare and submit an annual budget to the CRA Board for its consideration. 4. To attend all meetings of the CRA Board with the right to take part in the discussion but without having a vote. 5. To recommend to the CRA Board for adoption such matters as he/she may deem necessary or expedient in the interest of the CRA. 6. To employ and remove all employees of the CRA; provided however, that independent contractors such as the CRA attorney, consultants and other contract vendors shall be appointed and removed in the sole discretion of the CRA Board. 7. To make such reports as the CRA may require concerning the operations of the CRA. 8. To expend CRA funds or authorize the expenditure of CRA funds only in compliance with State and City law, the budget approved by the CRA Board, obligations incurred in the normal course of CRA business and as otherwise authorized by the CRA Board. 9. To perform such other duties as may be directed by the CRA Board. C. No member of the CRA Board shall dictate the appointment of any person to office or employment by the Executive Director or in any manner interfere with the Executive Director or prevent him/her from exercising his/her own judgment in the appointment of employees in the administrative service. D. The Executive Director shall be the administrative head of the CRA under the general supervision of the CRA Board. Except for the purpose of inquiries and investigations, neither the CRA Board nor its member shall deal with CRA employees who are subject to the direction and supervision of the Executive Director, or with contractors, suppliers or vendors of the CRA except through the Executive Director, and the CRA Board members shall not give orders to any such employees, contractors, suppliers or vendors either publicly or privately. Except as specifically directed by the CRA Board as a whole, and as otherwise reflected in officially adopted and enacted Board resolutions, policies and procedures, the Executive Director shall have the sole authority and responsibility to direct the actions and tasks of CRA staff. Nothing in the foregoing is to be construed to prohibit the CRA Board from closely scrutinizing by questions and personal observations, all aspects of CRA operations so as to obtain independent information to assist them in the formation of sound policies to be considered by the CRA Board. E. In order to insure the effective and efficient performance of staff duties and functions, office visits by Board members with the Executive Director, or through the Executive Director, other members of the CRA staff, shall be scheduled by appointment through the Executive Director or his/her designee. All meetings with more than one (1) Board member at a time shall be publicly noticed as required by law. F. Between official Board meetings, the Executive Director shall endeavor to keep Board members reasonably informed of events or situations affecting the CRA which, in the view of the Executive Director, require Board notification prior to the next Board meeting or workshop. In the event the Executive Director is required, due to unforeseen and/or uncontrollable circumstances, to deviate from a course of action he/she was directed to take by the Board or had otherwise publicly announced, he/she shall immediately consult with the Board chair, or in his/her absence, the Vice-chair, and will provide notification to the remaining Board members as soon thereafter as practicable. All such actions and communications shall be conducted in full compliance with Florida's Government in the Sunshine and Public Records Laws. I:\Client Documents\Boynton Beach CRA \24 1 9-000\Misc\Rules of Governance.doc - " fi f' II I: tl " ~ j 1 I I , \, , I II ill NEWBU.~S$~ ' ;, H, !i( !'" . I ,Ii ~l, '. 1 ir T ,i..' !' .af~ d.fISu~p~rt.~!t~~ Q,e..~ ~ 1it~~,b~~ofICom,,~c~!ini~Il!~t :,': i ~ ; 1 j !' I ~;'; if : I ,'~' I. q (.: ~~; j' , ;, I.', ii, :;f . d r' 1'j, !l \ ,~ r~ l~ II , ~ J: il ,j ;~ !fr I~ , ' , ~ r~ - ~ ; ,~ q ~ ~ !~ 1,i 11 ;F 1 , ~ t~ l! ~ ~ l:t 1IJ~~ctY~T2~ eRA . East Side-West Side-Seas"lde Rena"lssance eRA BOARD MEETING OF: January 13,2009 I I Consent Agenda I I Old Business I X I New Business I I Legal I I Other SUBJECT: Consideration of Supporting the Greater Boynton Beach Chamber of Commerce Dinner Dance SUMMARY: On December 30,2008 CRA staff received a call from the City Manager's office asking if we would be interested in splitting the cost of a table with them at the Chamber's New Beginnings Dinner Dance. The cost per table is $1,000 and includes seating for 10 people. The Executive Director agreed to bring this item before the Board for discussion. Please see backup for email communications regarding this request for support. FISCAL IMPACT: $500 from contingency line item 01-51990-200 CRA PLAN, PROGRAM OR PROJECT: Community Sponsorship - Resolution 06-02 RECOMMENDATIONS: Staff recommends the Board not support splitting the cost of the table and that the city bears the full cost. &~ Lisa Bright Executive Director T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by Meeting\FY 2008 - 2009 Board Meetings\!- 13-09 Meeting\Chamber Dinner Dance.doc ~ht, Lisa From: Sent: To: Subject: Bright, Lisa Wednesday, December 31,20083:01 PM Bressner, Kurt Re: GBB Chamber New Beginnings Dinner Dance Thanks Kurt. Sent from my BlackBerry Wireless Handheld :www.BlackBerry.ne~) -----Original Message----- From: Bressner, Kurt To: Bright, Lisa CC: Welsh, Pam Sent: Wed Dec 31 14:06:25 2008 Subject: Re: GBB Chamber New Beginnings Dinner Dance Lisa, I can save us time. In my absence this week I asked Pam to check with you to see if the CRA wanted to split the cost of a table for the Chamber dinner. Pam does not have to checy for Commission minutes as I plan to handle this administratively. The City will fund the table on it's own for 2009. If the CRA decides to fund a table, let me know please sc 'vve don't duplicate expenses. Thanks, Kurt Sent from my iPhone Kurt Bressner 561-436-2328 On Dec 31,2008, at 1:41 PM, "Bright, Lisa" <BrightL@bbfl.us> wrote: Hi Ashley, Please read this email: From: jreguez@aol.com <jreguez@aol.com' To: Bright, Lisa CC: Weiland, Ronald; Ross, Marlene; Hay, Woodrow; Taylor, Jerry; ~hercf, JaDe~ Sent: Mon Dec 22 23:02:59 2008 Subject: Re: Womans Club It has now been brought to my attention that there is a personal family relaclonsh~. that exist between your Asst. Director and the present/past president/board member '~~e woman's club. Can you please clarify and disclose that relationship tcehe board. I would suggest that donating dollars to an organization is not an act of procurement. Procurement is the act of purchasing. The eRA is not buying anything here ~o run it's operations. Donating tax payer dollars without the boards approval is not cocurement, it's donations. I'm sure the boards intention was never to allow you to donate tax payer dollars to any organization at your discretion without prior board approval. I would request that the procedure be brought forward for discussion and review. Regards, Jose As you are aware, the Executive Director position has the authority to make these types of decisions and in my capacity as Executive Director over the past three years have approved these types of requests without hesitation. However in light of Board Member Rodriguez's email, I am unwilling to approve this request. Board Member Rodriguez has requested a discussion and review with the Board at January's meeting. Please have Pam provide a copy of the City Commission minutes approving the request and the corresponding recommendation for the CRA to split the cost. Lisa Bright Executive Director Boynton Beach CRA 915 S. Federal Highway Boynton Beach, FL 33435 561-737-3256 brightl@ci.boynton-beach.fl.us From: Buckley, Ashley Sent: Tuesday, December 30, 2008 3:59 PM To: Bright, Lisa Cc: Harris, Susan Subject: GBB Chamber New Beginnings Dinner Dance 2 Hey Lisa, Pam Welsh called today to see if the CRA would be interested in splitting a table with the City at the Chamber's New Beginnings Dinner Dance. The cost per table is : and includes 10 places. The cost to us would be 5500. Please let me know. I am sure that this will be fine but wanted to confirm with yr' first. Thanks, Ashley Ashley B. Buckley Administrative Services Manager Boynton Beach CRA 915 Federal Highway Boynton Beach, FL 33435 Phone: (561) 737-3256 Fax: (561) 737-3258 <mailto:buckleya@ci.boynton-beach.fl.us> buck1eya@ci.boynton-bea~h.fl.us 3 RESOLUTION NO. 06 - 02 A RESOLUTION OF THE BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, TO SET THE LEVEL AND METHOD OF COMMUNITY SPONSORSHIP AMOUNTS THE CRA BOARD WILL ALLOW BEGINNING NOVEMBER 01, 2006; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, CRA Board wishes to set guidelines for any request for community sponsorship funded by the Agency; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY: SECTION 1. CRA authorizes the Executive Director to forward all requests for community sponsorship to the Board prior to disbursement, and that all approved requests adhere to the guidelines in Section 2. SECTION 2. All such requests deliver a program andlor service within the eRA district. Programs, services and events must be related to the mission and principles of the CRA in that they promote economic development within the CRA district andlor benefit residents of the Boynton Beach CRA. Programs and services benefit the community redevelopment area. The Board may choose to alter these parameters at their discretion. SECTION 2a. The maximum amount of any charitable sponsorship is $1,000 per agency or organization during any calendar year. SECTION 3. If any clause, section, other part or application of this Resolution is held by any court of competent jurisdiction to be unconstitutional or invalid, in part or application, it shall not affect the validity of the remaining portions or applications of this Resolution. SECTION 4. EFFECTIVE DATE This resolution shall become effective immediately upon its passage and adoption. Board Member NOREM offered the foregoing Resolution and moved its adoption. The motion was seconded by Board Member MYaTT and upon being put to a vote, the vote was as follows: 1 HENDERSON TILLMAN, Chair STORMET NOREM, Vice-Chair JEANNE HEA VILIN, Board Member GUARN SIMMS, Board Member LANCE CHANEY, Board Member MARIE HORENBURGER, Board Member STEVE MYOTT, Board Member The Chair Person thereupon declared this Resolution approved and adopted by the CRA Board of the Boynton Beach Community Redevelopment Agency, Boynton Beach. Florida, this _14h_ day of November, 2006. By: Henderson Tillman, Chair Person BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY Legal in form and valid if enacted: Kenneth Spillias CRA Attorney 2 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida November 14, 2006 Ms. Heavilin asked if in the future the CRA boundaries could automatically be updated on annexation requests. Ms. Brooks replied they discussed this with Oty staff and the eRA boundary adjustment would become part of the application package for annexation requests. Ms. Horenburger thought the City could change the boundary ahead of time. Ms. Brooks was not sure why the City did not do that. It was possibly because if it was not in the Oty, it could not be in the CRA. Ms. Horenburger asked whether the Oty could do an overlay. Ms. Brooks spoke to the Property Appraiser, who stated if the property was not in the City, it could not- be in the CRA. Ms. Horenburger thought an overlay would make it automatic on anything annexed into the City. Attorney Spillias commented the requested action was for the board to recommend the City change the boundaries. MotiQn Vice Chair Norem moved to recommend the CRA boundaries be changed per the discussion. Mr. Myott seconded the motion that passed 7-0. F. Resolution 06-02 - R€9arding Soonsorship Funding Mr. Sims mentioned on page two of this document, his name had been misspelled. It was spelled Garn Simms and it should be Guam Sims. Reverend Chaney commented there was one "Nil in his name and not two. Ms. Horenburger took issue with the term "identifiable population" in Section 2. Was it meant to cover more than just festivals and street fairs? Mr. Reardon stated it would cover any special program they did. Ms. Bright added if they wanted to sponsor an event in the Heart of Boynton area that would affect the Children's Youth board, for example, it would give the board more latitude. Ms. Horenburger did not want to see it in a way that every event always had to have a specific impact on a specifically identified population. Mr. Reardon would work on it to modify it. Mr. Myatt noted the next statement said the board could alter the parameters at its discretion. Ms. Horenburger stated that would mean it would have to come back to the board before doing an event. Motion Vice Chair Norem moved to approve Resolution 06-02 with the grammatical corrections that were made. Mr. Myott seconded the motion that passed 7-0. G. Update on Five Towns College Reverend Chaney asked if there was a timeline for progress on this. Ms. Bright stated they were having another negotiation on the day following this meeting. It had been held up due to a lack of local legal counsel to work with the eRA's counsel. That person would, however, now be coming in for the meeting. Mr. Myott asked how their finances were holding up. Ms. Bright indicated they wanted to get the agreement in place and were trying to get the $800K bond. The current architect is saying it is about an $8M renovation and that was what they stated the night they won the award. She spoke to the City Manager who was to start working with Ms. 17 Jl~~~Y~T8~IC RA iii East Side-West Side-Seaside Renaissance AGENDA ADDITION eRA BOARD MEETING OF: January13,2009 I I Consent Agenda I I Old Business I X I New Business Legal Other SUBJECT: Consideration of Exercising Right of First Refusal on Property located at 3675 S. Federal Highway SUMMARY: In May 13, 2008, the CRA Board voted to purchase the State alcoholic beverage and City adult entertainment licenses from the business known as Platinum Gold. In exchange for the purchase of the licenses, the CRA placed a restrictive covenant on the property prohibiting future adult entertainment usages on the property. The CRA also has the Right of First Refusal on the real property. (See Attached) On Thursday, January 8,2009 the CRA received a copy of a contract on the property. (See Attached) Per the terms of the Restrictive Covenant and Right of First Refusal, the CRA must exercise its Right of First Refusal within 15 days of receipt of a bona fide third party offer. The CRA was also provided, on Monday, January 12, 2009, a copy of a subordination agreement, provided by the seller's attorney. (See Attached) If the CRA so elects to exercise its option to purchase, the election needs to be in writing accompanied by a contract fully executed by the CRA with identical terms and a deposit. The failure by the CRA to elect to exercise its Right of First Refusal within the 15 days and to satisfy the terms of the "covenant" will result in the Right of First Refusal terminating and be of no further force or effect. The Right of First Refusal does not apply to any transfer of the property through foreclosure or any similar transfer to the holder of any mortgage. In the event the CRA does not exercise its Right of First Refusal and the owner fails to consummate the transaction which was the subject of the option notice, then the CRA does have a Right of First Refusal to any subsequent proposed transfer of the property. The CRA has until January 21,2009 to elect to exercise its Right of First Refusal. FISCAL IMPACT: $1,250,000 if the CRA elects to exercise its Right of First Refusal and purchase'the property. There are no funds budgeted in the FY 08/09 budget. CRA PLAN, PROGRAM OR PROJECT: Federal Highway Corridor Redevelopment Plan RECOMMENDA TI 0 NS: Staff does not recommend exercising the Right of First Refusal due to the lack of funds to purchase the property. :dk c. -&~} Lisa A. Bright Executive Director T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by Meeting\FY 2008 - 2009 Board Meetings\l- 13-09 Meeting\First of Refusal Platinum Gold (2).doc ,gn~m~w~mgUftmlftflmgmgmlml CFN 20080287899 OR BK 22788 PG 1102 RECORDED 08/01/2008 13:26:27 Palm Beach County, Florida S~aron R. Bock,CLERK & COKPTRO~~ER Pgs 1102 - 1108~ (7pgs) PREPARED BYIRETURN TO: Ryan P. Aiello, Esquire Nason) Yeager) Gerson, White & Lioce, P.A. 1645 Palm Beach Lakes Boulevard Suite 1200 West Palm Beach, Florida 33401 RESTRICTIVE COVENANT AND RIGHT OF FIRST REFUSAL This Restrictive Covenant and Right of First. Refusal (this ('Covenant") by NSG PROPERTIES, INC.~ a Florida corporation, its successors and assigns (herein collectively called "Own~r"), having an address of 3675 S. Federal Highway, Boynton Beach, Florida 33435, for the benefit of the Boynton Beach Community Redevelopment Agency, a public body, corporate and politic, duly created and operated pursuant to Chapter 163, Florida Statutes, its successors and/or assigns, (herein collectively called "CRAU) having an address of915 S. Federal Highway, Boynton Beach, Florida 33435. RECITALS: A.' Owner holds fee simple title to that certain parcel of real property situate> lying and being in Palm Beach County, Florida and more particularly described on Exhibit l(A" (the UProperty") attached hereto and made a part hereof. B. It is necessary to subject the Property to the restrictions set forth herein as an inducement for the CRA to purchase that certain State of Florida quota alcoholic beverage license #60-00711, and that certain City of Boynton Beach Adult Entertainment License #10249 (collectively, the "Assets") from Southern Entertainment Company of Florida, Inc., a Florida corporation ("Southern"), a related entity of Owner. C. In consideration of the purchase price, Owner agrees to subject the Property to the covenants and restrictions set forth in the Covenant for the benefit of the CRA. D. GOREN, CHBROF, DOODY & EZROL, P.A., escrow agent for the CRA's . purchase of the Assets (the "Escrow Agent"), shall cause to have this Covenant recorded in the Public Records of Palm Beach County, Florida, on the date hereof and comtemporaneously with disbursement of funds to Southern for the purchase of the Assets. NOW THEREFORE) in consideration of the swn ofTen Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Owner, for itself) and its respective successors and assigns, agrees that the Property shall be held, . transferred, sold, encumbered, conveyed, used and occupied, subject to the following covenants and restrictions: 1. Recitals. The foregoing recitals are true and correct and incorporated herein by this reference. 2. Restrictive Covenant. NSG does hereby agree, covenant, and warrant that the Property shall not be used in any fashion as an adult entertainment establishment as defined in the City of Boynton Beach Code of Ordinances. In the event the Property is utilized to facilitate an establislunent of any commercial na~e which by defInition of the Boynton Beach Code of Ordinances constitutes an adult entertainment establishment as of the date of this covenant, or as the Code may be amended from time to time, then the CRA shall be entitled to file and obtain a temporary and pennanent injunction without notice. 3. RilZht of Firat Refusal. Owner hereby grants to the CRA a one time right of fIrst refusal to purchase the Property (the IlRight of First Refusal") on the following tenns and conditions: (a) Upon Owner's receipt of a bona fIde third party offer (the "Offerl!) to purchase the Property, Owner shall provide a copy of the Offer to the CRA. The Offer shall be in the fonn of a written purchase and sale agreement in fonn and substance such that, but for the Right of First Refusal, Owner would otherwise execute such Offer without further modification to such Offer. The CRA shall have a period of fIfteen (15) consecutive calendar days (the "Option Periodll) to determine whether or not the CRA wishes to exercise the Right of First Refusal and enter into a purchase and sale agreement to purchase the Property on the identical terms and conditions provided for irI the Offer. (b) Should the CRA elect to exercise its Right of First Refusal, the Owner must receive written notice from the CRA (the "Option Notice") within the Option Period irI the form' of (i) an affirmative written statement by the CRA of the CRA' s election to exercise the Right of First Refusal, (ii) an executed purchase and sale agreement in the identical fonn as the Offer, except that the name of the purchaser or buyer thereunder shall be the CRA and (Hi) evidence that any earnest money deposit required under the Offer has been made, in cleared U.S. funds, to an escrow agent which shall be an agent for a nationally recognized title insurance company. Failure by the CRA to timely provide the Option Notice shall be deemed to be the CRA's election not to exercise its Right of First Refusal, and the Right of First Refusal shall automatically terminate and be of no further force or effect, without the necessity of any further writing to evidence such termination being recorded in the Public Records of Palm Beach County, Florida. In the event that the eRA exercises the Right of First Refusal, then the CRA shall purchase the Property on essentially the same tenus and conditions as the Offer, except that the CRA shall be afforded the same number of calendar days as provid~d for in the Offer for matter such as due diligence/inspection periods, title and survey review, and closing as contained in the Offer, the determination of such time periods commencing on the date of the CRA's exercise of the Right of First Refusal. 2 (c) The Right of First Refusal shall not apply to any transfer of the Property through foreclosure, deed in lieu of foreclosure. or other similar transfer to the holder of any mortgage on the Property. Notwithstanding anything to. the contrary contained herein, the CRA shall not have the right to exercise its Right of First Refusal in the event Owner sells the Property to any entity which is also owned or controlled in whole or in part by some or all of the members of Owner where such members continue to own at least 50% of such membership interests in the purchasing entity (the "Affiliate"). (d) THE CRA ACKNOWLEDGES AND AGREES TIlAT TIME IS OF TIlE ESSENCE FOR THE CRA'S EXERCISE OF ANY REFUSAL RIGHT. EXCEPT FOR PROVIDING THE OPTION NOTICE TO THE CRA. OWNER IS NOT OBLIGATED TO NOTIFY TIlE CRA OF ANY UPCOMING NEED TO TIMELY EXERCISE THE RIGHT OF FIRST REFUSAL. TIlE CRA FURTHER ACKNOWLEDGES THAT THE RIGHT OF FIRST REFUSAL IS A ONE TIME RIGHT OF FIRST REFUSAL AND NOT A CONTINUING RIGHT OF FIRST REFUSAL OR OtHERWISE SUBJECT TO REINSTATEMENTj PROVIDED, HOWEVER, THAT IN THE EVENT THAT OWNER DELIVERS THE OPTION NOTICE TO TIm CRA AND THE CRA DECLINES TO EXERCISE ITS RIGHT OF FIRST REFUSAL, AND OWNER FAILS TO CONSUMMATE THE TRANSACTION WHICH WAS THE SUBJECT OF SUCH OPTION NOTICE, THEN THE CRA'S RIGHT OF FIRST REFUSAL SHALL BE EFFECTIVE AS TO ANY SUBSEQUENT PROPOSED TRANSFER OF THE PROPERTY BY OWNER. 4. ~otices. All notices, statements, demands or other communications ClnoticeCst) to be given under or pursuant to this Covenant, or which a party hereto may wish to give, must be in writing, addressed to the other party at its address as provided below, and delivered in person, by facsimile transmission or by certified or registered mail, return receipt requested and postage prepaid. Such notice will be deemed to have been delivered on the date of hand delivery, on the date of delivery by facsimile transmission (unless such delivery is made on a non-business day or on any day after 5 p.m., in which event delivery will be deemed to have been made on the following business day) or on the day of delivery when mailed as aforesaid (which would also be the day receipt is rejected), as the case may be. Any party may from time to time change its address or facsimile number for receipt of notices by sending a notice to the other parties specifying such. new information. To Owner: NSG Properties, Inc. Attn: Nonnan S. Goddard 3675 S. Federal Highway Boynton Beach, Florida 33435 To CRA: Boynton Beach Community Redevelopment Agency Attn: Lisa A. Bright, Executive Director 915 S. Federal Highway 3 Boynton Beach, Florida 33435 (561) 737-3258 (facsimile) 5. Miscellaneous. (a) This Covenant will be construed in accordance with the laws of the State of Florida. This Covenant will not be construed more strongly against either party regardless of which party is responsible for its preparation. (b) Time is of the essence. Any time periods provided for herein which ends on a Saturday, Sunday or a,legal holiday will extend to 5:00 p.m. ofthe next business day. (c). In connection with any litigation arising out of this Covenant, including, without limitation, all trial, appellate and post-judgment proceedings, the prevailing party will be entitled to recover reasonable attorneys' fees and costs. (d) This Covenant will bind and accrue to the benefit of the parties hereto and their heirs, executors, administrators, assigns and successors in interest and shall be a covenant running with the land. If any portion of this Covenant is'determined to be unlawful, the remaining portions will remain in full force and effect as if such unlawful portiones) did not appear herein. (e) This Covenant may be executed in any number of counterparts and by different parties to this Covenant on separate counterparts, each of which, when so executed, will be deemed an original, but all such counterparts will constitute one and the same Covenant. [EXECUTIONS ON FOLLOWING PAGES] 4 IN WITNESS WHEREOF, the parties have caused this Covenant to be executed and delivered on the date first written above. WITNESSES: OWNER: i (CORPORATE SEAL) STATE OF FLORIDA ) ) SS: COUNTY OF PALM BEACH ) (1 ..~ The foregoing Restrictive Covenant was ackno{vledged before me . ay of July, 2008. by Nonnan Goddard. t~:lresident of NSG Properties, Inc.) a FIr .ation, on , . behalf of the corporation, ( 2\..) who is personally own to me OR ) 0 'pro oed . as identific 'on. ~J"6uZANNEC:WEEG''''''''''1 commtlDDb670556 Elql\res 6121/2011 FIoddaNcl!MV~ !no ....".........~,I'_~ Print Notary Name , . .-.... ........... .-....~ NOTARY PUBLIC State of Florida. at Large My Commission Expires: . H:\86S9\19876\DRcstrlcllveCovenantAgleemollllU'AllJl& 5 CONSENT AND JOINDER Boynton Beach Community Redevelopment Agency) a public body, corporate and politic, duly created and operated pursuant to Chapter 163, Florida Statutes, its successors and/or assigns, hereby consents to, joins in and agrees that the undersigned and its successors and assigns shall be bound by the above Covenant. Witnesses: (bl.\o~\.~ ~ Signature <:;~~':I\\\o..(\e \(, \\C\ (\0(\1 c Print Name Boynton Beach Community Redevelopment Agency, a public body, corporate and politic, duly created and operated pursuant to Chapter 163, Florida Statutes ACKNOWLEDGMENT STATE OF FLORIDA ) ) SS: COUNTY OF p~.( u ~ir ) __ Th,e fore~oing instrument was acknowledged before me by Iv,!" A 5 t-9 fit + , as t;;.'t el t.:l I./-c" "" t IJ}~ fJ ,~t1fOf Boynton Beach Community Redevelopment Agency) a public body) corporate and politic, duly created and operated pursuant to Chapter 163, Florida Statutes, on behalf of the public body, corporate and politic, duly created and operated pursuant to Chapter 163, Florida Statute, and who is personally known to me or has produced a Florida driver's license as identification. . P-..L Witness my signature and official seal this c;2:/ day of July, 2008, in he County and State aforesaid. ' Notary Public S~te 0 Florid~ .J J Print Name: .YO.c tf~~ I t:/:.A:.,e.fi.. f \ My Commission Expires: 66../, I~ ~Ol{ .. SUMN..HARRlS Nolley PuMa . 8tItt of flollM · . ~:n~~~rl1 . ......~NIIIlolllIIHotIrvAan. H:\2007\070473 BBCRA\SOUTHERN ENTERT AINMENNinal Restrictive Covenant July 21.doc ~ 6 LEGAL DBSCIRPTION A parcel of land lying in Palm Beach County, Florida, more particularly described as follows: Commencing at the intersection of the Easterly right-of-way line of the Florida East Coast Railway witb the East-West Quarter Section line of Section 4. Township 46 South, Range 43 East, Palm Beach County, Florida; thence Easterly along said East-West Quarter Section line~ a distance of80.90 feetj thence Northerly, parallel with the said Basterly right-of,.way of the Florida East coast Railway, a distance of 62.67 feet to an intersection. with the Northerly right-of-way line of Gulfstream Boulevard; thence Easterly along said Northerly right-otway Une a distance of70.SS feet to the point of curvature of a curve to the South baving a radius of 1950.08 feet and a central angle of 50 59' 38"; thence Easterly along the arc of said curve a distance of204 fee~; thence continue Easterly, along said rigbt-of,.way line. tangent to said curve, a distance of 68.82 feet to the POINT OF BEOlNNING of the Parcel to be herein described; thence continue Easterly. along the same COurSO, a distance of217.96 feet to the point of a curvature Qf a curve concave to the Northwest having a radius of 20 feet and a central angle of 720 27' SO"; thence Easterly and Northerly along the arc of said . curve, a distance of25.29 feet to a point in the westerly right-of-way line of U.S. Highway No.1 (S.R ## 5); thence Northerly along said right.or-way line tangent to said curve. a distance of 180.03 feet; thence Westerly, making an angle with the preceding course of 107033' 34", measured from North to West, a distance of263.45 feetj thence Southerly, making an angle with the preceding course of980 33' 12" measured from East to South. a distance of 187.60 feet to the POlNT OF BEGINNING aforesaid. APPROVED on 1uly 22. 2008 Exhibit "N' J3n 08 2009 3:01PM NASON YEAGER GERSON WHITE 5614710894 p.2 NASON YEAGER GERSON WHITE f6 LIOCE. PA. ATTORNEYS AT LAW MEUDN UNITED NATIONAL BAN I( TOWER. 1645 PALM BEACH LAKfS BOULEVARD SUITE 1200 WEST PALM BEACH. FLOR.IDA 33401 RYAN P. AIELLO DIRECT DIAL: (56') 471-3502 E-MAIL ADDRESS: raiello@l1asonyeager.com TELEPHONE (561) 686-3307 . FACSIMILE (561) 686-5442 www.nasonyeager.com January 8, 2009 VIA FACSIMILE (561) 737-3258 Boynton Beach Community Redevelopment Agency Attn: Lisa A. Bright, Executive Director 915 S. Federal Highway Boynton Beach, Florida 33435 RE: NSG Properties, Inc. (IOwner")lBoynton Beach Community Redevelopment Agency ("CRA") Our File No. 8659/19876 Dear Lisa: Attached is an executed Purchase and Sale Agreement between Grindstone Management, LLC and Owner. In accordance with the restrictive covenant and right of fIrst refusal granted to the CRA. the eRA has a period of fifteen (15) days to determine whether or not it wishes to exercise its right of first refusal and purchase the subject property. Additionally, the proposed buyer of the property has offered to give a loan to Owner on the condition that the CRA subordinates its right of first refusal to such loan, Assuming that the CRA does not wish to exercise its right of first refusal, then delivering the subordination in favor of the proposed buyer should not be an Issue. Please feel free to contact me with any questions. Please also let me know if you would like me to coordinate with CRA's legal counsel on these matters. Sincerely, NASON, YEAGER, GERSON, ~~~ Ryan P. Aiello Enclosure cc: Nonnan Goddard Peter L. Desiderio, Esq. H:\8659\19876\LBrigbtOl-07-D9RPAIlml JAn 08 2009 3:01PM NASON YEAGER GERSON WHITE 5614710894 COl!1 )Il jt [lit C'_'1l1~ I FLO~I:..;.\ L'3~CJCI"'.d ,_jl'" I - F.t:""LfC;-~.:: ~~T~~""4'!!C. .1U6tl>1'1 tJ~~. .a"'_ 3 agrees 10 btJ~ and 4 fiSt; Prooerties. Inc.. a Florida corooratkm 5 aSjlee to sail the property described as: 6 Street Address: 3675 South FederaJ H;9hWllY. Bollnmn Beach. Rorlda 33435 (~8UVB"") , ("Seller"), 1 Legal Description: a Sltf! Attached EXhlbft "A". 10 11 . and the following Personal Property: 12 NJA 13 1. 1~ (all collectively referred to as the ~Propertyj on tt1e terms and conditions set forth below. The "Effective Date" of this 16 Contract is the date on wf1Ich the last of the Parties s1gll6 the latest offer. Time Is of the essence.ln this Contraet Time 17 periods of 5 days or less will be computed without including Saturday. Sunda)'. or nmiona/legal holIdays and ~ny time period 11 ending on a Saturday, Sunday or national Jega.1 holiday w91 be extended unli/ 5:00 p.m. of the next business day. ,~ 2. PURCHASE PRICE; $ 1 r 25Qr(jOO 00 20 (a) Oep osil held in escrow by Steams W9ave.r: A{iiltrt mal S 10.000 DO 21 (b) Additional deposit to be made within ~ days from Effective Date $_-_. .. 4lJ.OOD (J/) 22 (c) Total mortgages (as'r~ferenced in Paragraph 3) $ foliA Zl (d) Other: a~ ""..",/r.....i.. Arid ~ha/I ,.,f,.,rfn thi! ~tt:ocl1ed ArIrlAndtJm $-- NIA 24 (e) Balance to close, subject to adjustments and proralions, 25 10 be made with cash, locally drawn certified or cashiets cI1eck or wire transfer. S 1 2IXUIOO.OO 26 3. llllRD PARTY FINANCING: Vllithin.JJlll days from Effective Date ("Aplllication Per1od"). BLJYer will, at Buyer's expense. ZI apply for third par1y financing in the amount of $ or % of the I'urchase price to br; 28 amortized over a period of _ years and due in no less than _ years and wilh a fixed in1eresi rale nollo exceed :z9 0 % per year orvariable interest rate not to exceed 0 _~O/O at Driginalionwith a lifetime cap [Pot to 3ll exceed % from initial rate, with additional terms as follows: :>1 32 3l 34 Buyer will pay forltie mortgagee title insurance policy and fur all loan expenses. Buyerwill timely provide any and an credit, 35 employment, filnanclal and other information reasonably requ~ed by any lender. Buyer will notify Seller immediat9ty upon 36 obtaining financing or being rejected by a lender. If Buyer, after diligent effort, faDs to obta in a written commitment wi1hin 31 days from Effective Date C'Financing Period"), Buyer may cancel the Contract by giving prompt notice to Seller 38 and Buyer's deposit(s) will be returned 10 Buyer in accordance with Para~aph 9. 3~ Buyer: ,L;.1. [ ) and Solie, ~ ( l acknowledge receipt of a ~py of this page, whit;h Is Page 1 of S Pages. CC-2~1IDdsItm aI ~a.......AB~ l.Ice..-llo..... $lar So4tw1lt8. UIIIIr R!g#S-2aGBCY33020Q3NOJ-1021 Software and Added Formatting Copyright 2004 Alta Star Software, Inc. All Rights Reserved. (305) 279-1898 AL TA ST..tR U"IW"J<lH Jan 08 2009 3:01PM NASON YEAGER GERSON WHITE 5614710894 p.4 4G ... TinE: SeJleI' hat the legal capacity to 1Irld wilt convey marketable tltIe 10 the Property by ~ statutory warranty deed ", [J other fnIe of IfeM. eallemenIB and eAcumbJaJlCH of{ec:ord or knawn to 42 Seller, bul8\Jbjed to propefty taxes for the year of cIos~; cuwnants, restrldJons and public utmty easements. of reCOld; 3Ild 43 (list 811)' other rIIlIller8 Ia Y1IhIch 1I1Ie Mil be s~) .-frldlWl etlVll....ft t. nn #tOO" ~ntw-m;"fJIIH1f nlgPlcl'lM . 44 povId8d u.m ed8fa at cIo&ing no YIoI&tIon of1he fllregolrlg and non. d1hem pre\lenls Buyer"lS 1nt<<1dvd US8 of the Property ", as eomlmffl!flll~""V ' tl) evidence otTilie; SetlerwlL at (check one) Ii( Sellen 0 Buyer'e expense and VlEthln...ttL.- days lliI from BI'eclhta D81e [] prior IQ Closing Date 0 from dale Buy... me'" or wallles fil18l1cing oonUngency in P8J.'119raph 3. lIellVer to Buyer (chec;k one) a 8 tide Insurance comnitmenl by a Fbidillioensed tite NtI'Elf end, upon Buyer recording file deed, BIl a.vner'$ p'o!lcrin the amount of the JlUfChase price frr fee simple We S\Jbject only to exceptions s1aled above. o an ebs1r8ct of fIIIe, prepared or brought current by an exIstklg abstrad 1'Inn or certlfted 8G r;onect by en exIdn9 'linn. Hawever, if sucIl an abstract Is nol sVBllable 1oseller, thlm a prior ClWllers title poDc:;.y acceplabI& to the propo:sed Insufer as a base for l8issuance of coverage. The prior paley will Include copies of all poky exceptions and 811 update in B forraat aa:spIable 10 Buprtomthe policy effetUve Oate and certllled to a.yeror Buyer's dosing ag!lfll toge1her wilh coples or an doaJmenb recited In the prtor pelle)' and In tl1e ~e. 90 (b) Tlffe Examination: Burer will, wifhin 11 days from 18C81pt of1he ~ of tide deJhoer written "otlca to Seller of title defeots. TftIe" be deemed ao:;epb1b1e to Buy_if (1) Buyer faDi to deliver proper nolbl Qf defecta or (2) Buyer de ijvsn; proper written DOtIoe and Seller CUl'e8 the defects within M d8ys from receipt of the notice ("CUmMe Period"). IHtIe ~RtV"""...<l y~ll1.).,tI.~ 8\06lpfl..y P-~.]4d_uLI" ....Ulv_. ",.181. 16~rv n.....,.(IW"'W'QIJt'lb7 LZYI vrllw4":,,._rY~11lt'Al.~. SeDer may .leI not io CUN defects If S&ller sealOl1ab1y befieves anv defect cannot be cured within the CUratIve Period. If 1he defecta Bn nqt CIJrer:I wiDlln the Curative Partld. Buyer wiD have 10 dB)1l from recs1pt of notice of Seller.. inablIIIy 10 cure the defects to elect whether to tennIba11 tHa Contract or .o:.pt till, subject to- existing defeca and dose th~ tJanSildlon wId10tt reductlcn ., p&i~l!Iae I'~. The pa1y who pays for the evfdence of tlt\e wlR also pay re[Bled 1I1a servfce fees Includln9lUe anel abstract charges and ODe examination, 45 47 4a 49 50 ~1 62 53 54 S/j 56 Sf 51 59 eo 61 Ii2 Il:a 54 Il5 B$ ~ 88 .. 70 71 72 7! (c) SuIYe7: (chedC applcable provisions betow) H SelJGrwil~ wI!hIn.5....-- deys from .Eftllttlve Data, deliver to Buyercoples of prlorsurveya, plans, slHIdficallons. and !nglneerlng doaJments, If any, and thefolDWiflg documents rallmml to tills IranSaclion: ~_ .l!I.w.."",_. ....,..~.. r"'=:p' NaIIvD..." 'IV :Ct......, in ~I"..r p~ fbrSellerorlnSiJnsr'$p[)SsessJon. v.ilIch show aD ctIlT8ntlyexlstll'1SsttucM8S. . ...._ D!l BuyetWlll, at 0 Seller'a Jliit EIllyer'1 expene and wlIhin the time 'perlod a1!O'WOd to deliVer aod e'lCamme tifJ9 evklencs. obfaJn a current (;8rilfled survey of 1I1e PropBI1y from a rel15tered S\lY&yor. Itlhe survey reveals llrlCI'CBChrnenlll on the Property 01 fhat the Improvements encroaclt on tie taoos of another, U Buyer wil accept the Pro perty wlfJ1 existing encroachments liI such encroachments wII constitute 8 tllle defect to be cured Wltl'm the Curaiwl Pet1od. 7.01 (d) Ing- and Egress: Seifer warr~ thal the Property prll$8IIlly has il'llJ8lJS and eg18a$. 7$ fe) PosMCillion: Se!rerwill deli'ver ponession and keys forallloclcs and alann. to Buyer at cIosil1g. 7e 5.CLOSIHGDATEANDPROCECURE: Thlslransaclionwlllbedosed In S8&Adn'llndum . . - O,,_.lJ' 77 Fh.i:llt. JI. U II..... n I. ..:11':.. ..b..~_lw...Ii:IJ_.JIi.41 ~~~ r:~ :~,. ;:;:.I.U1 78 A_.J.>_ ..4.&j I....~" ~ 8.1111 Iil 1_. _ ill J~"4.r.4~ 11._ L~.:i.. _..-.1. 8_,...1 . I 11';'-_ 79 do,-. 6""'11 ~1"'~fiJ' &.~. dA._. Iv ~-... A~~ ~l~u~ ",,,L...~._ .1'JfIIe(. ..,.",.ld:. r~ .dv..4. 'II t'IY~g,. U -..11 '.AlYU....61 89 11II:OI&. Jill ,.._.IdL4Y .,....~IPil'~ IL..&. JloOond....., .g"'t~IIlI;i.I_,r.... w.. l"" "'~"I lLn1lill 'WI J(;I.l' uud wlv,;.L.'1f t'''''"''''''~I'IIjjj~ .....10 -.",(,4 ow..... VtIf~l ~1 c:,nL ~} ,-11'1 I In.llqi. ;11111'." 81 tal Costs: Buyerwl! par tS1I11 I 'r"lfIiI, fa.. I I 1, ....... .~~ Iii........ 11..ruRw. III If recordnll reell for the B3 deed. Seller wII pay faXes on the deed and recoJdirJg feu for doaJmenls needed to cure title defect&. If s.Jler is obligated 84 10 discharge 'lIl'f tfIcumbrance at or prior to cbslng and fails to do &0. Buter may use pl.rdlase proceec:h 10 salify the 95 ena..nnllnlncea. lN5 (bt Documen1sJ;'~1er will provide the dEled, bill of sale, med1anlc'8 lien afficlavlf. ULI5.... ._..I~ ..: I..su, 1Ij!.hd, I not. drl, ~ b......uL _.d I.."A, ..4t:..,.1"4 l...1.....I. ass~enls of permts and bnses, COtT8d1ve InWuments and 1..4.,,. . .....,~'lI ~.....,~ 58 vf HI"'" a_.- L. ..,....~.... Ad,.J.v..bA ~,L If ~HJ ~J,Q..lll.."Wl'lliI"-'W ~ _....t... YllI ~~a ~, 8\.,-11,-_ ..., """....urJ U ,d b,r~"",&., all '''lI''''dL'lIIl,..~,_.I..I.l.-_~_.~..l.IfSell'rlaacotpOnllion,S~'''' . deliver a telOlufon or It& Bom:I of DiRIclDnI tD aulhurizing the sale end deINCl)' of the deed and certific8tlon by the corporate SlICI'e1l1l}' cer1fIVlng the te&<J.1ullon and se1ti1lO 91 fDdh facts 8howing tile COJWeyaI1C8 conforms with the requirements of 1ocaI11IIr. Seller 'WID tIlrlsfersectl1ly deposits to " Buyer. BuyerwiI provide the otoshg "'men1, mortgages end nolel, S<<Uity agreements and 1ir'lancilg stablmenls. ~ B~{ )."dS..J'C I L_ adalaMedgereCeIplDfa.WPYofth1s~~'whIchl'PlIge~Of5page& CC-2 of~""Jlghb __. ~ 8lat1a""",",. S and AddtId Formattfng Copyright 2004AIta $tar Sottware, In 1:. All Rights Rlt$erved. (315) 17S-81!Nl Jan 08 2009 3:01PM NASON YEAGER GERSON WHIT~ 5614710894 (ct Taxes, As$Msments, and Proratlons: The foUowing items will 00 made CWTent l!nd prorated Ja as of Closing Date 0 as of : real estate taxes. bond ami assessment payments assumed by Buyer, interest, rents, association dues, insurance premiums acceptable to Buyer, operaliol\8l expensEs, and HIA If the am:n:Wlt C)f taxes and assess ments for the current year cannot be ascertained. rates for the previous year will be used with due allowance being made for improvements and exemptions. Seller is aware of the following assessments affectfng or pDtentielly affecl:in g it'lli Property: NO~ . Buyer will be responsible for all assessments of any kin<l whIch bec;ome due and owing on or after Effective Date, unless Ihe improvement is stlbslantially completed as of Closing Date, in which case Seller will be obligaled to pay the emire assessment. Cd) ARPTA Tax WIthholding: The Foreign Investment in Real Property Act rFIRPTA") requires Buyer to withhold at dosing a portion of Ihe purchase proceeds for remission to the IrJtemal Revenue Service ("I.R.S.'1 if Sell~r i:> e Yforeign person" as defined by the Internal Revenue Code. The parties agree to comply with the provisions of FIRPTA and 10 provide, at or prior fo closing, appropriate dOCllmentation tr> estab&sh any applica.ble exemptJon irom the withholdiog requirement. If withholding is reqllired and Buyer does flot have cash s.uffJCfenl at closi~ to meel the withholcmg requirement, Seller wm provide the necessal)' funds and Buyer will provide proof to Seller 1hat $tlch funds were properly remitted to Ihe I.R.S. 6. ESCROW; Buyer and S1!!llltr authorize St.."rns w....v..,. Mlll~,. W@/ssl4!!r AlhadAff & Sitt"~nn P A Telephone: 9544fi2-954rJ Facsimile: 954-462-9567 Address: ,no FltLrr:' I ;to!:: OJ:!!: Rlvrl , !;" ifR 'fM Fnrr' :",ul..m",rF!, FlnTlrb 33301 to ad: as "Escrow Aoen1" to receive funds and other (tems and, subject 10 c1ea.mnce. disburse them in accordance with the~rms of this C~tract. Esaow Agent will deposit aD funds rereived in U a non-interest bearing escrow account ~ an Interest bearing e~ accolXlt with illl.erest accruing 10 B!Jver . . . wi.th.interest disbursed (check one) Jl:l\ at crosi'lg U 81 intervals, If Escrow Agent re<:eiVes ronfllcling demand~. or has a good faith doubt as to Escrow Agenl's dutlesor liabilities under this Contract, helshe may (a) hold the subject malIer. of the escrow until the parties muiually ag.ree to its disbursement or LIlti! issuance of a court order or decision 9f arbitrat9r detem1ining the parties' rights regarding the escrc1N or (b) deposit the $ubjed rna1ter of the escrow with the clerk of 1he circuit court having jurisdiction over 1I1e dispu1e. Upon notifying the pal1ias of :such actIon, Escrow Agent will be released from all liability except for the duty to account for items previously delivered out (If escrow. If a licensed real estate br~er, Escrow AQent will comply with applicable provisions of Chapter 475, f'lorida statutes. In any suit or arbitration in whim Escrow Agent is made a party because of actillg as agen1 hereunder or interpleads the subject matter of the escrow, Escrow Agent will recover reasonable attorneys' fees ilnd costs at an levels, with such fees and costs to be paid from the escrowed funds or eqJjl/aIent and charged and svliuded as court or other oosts in f~vor of the prevailing par1y. The parties agree thai Escrow Agent wJ1l not be liable to any person for misdelivery 10 Buyer or Sell er of escrOW'ed items, unless the misdelivery is due to Escrow Agenrs willful breach of tJ:Iis Contract or gross negligence.. 128 7_ PROPERTY CONDITION: Seller wHl deliver the Property 10 8uyer at the time agreed In its present "as is" condition, 129 ordinary wear ~nd tear excepted. and will maintain the land&eaplng and groms in a comparable condilIon. Setler makes no 130 warranties other than markelabillty of ti1le. By accepting the Property "as is," Buyer waives all daims against Seller for any 1~1 defects in the property. (Check. (a} Dr (b}) . 9~ 95 98 ff7 98 9S 100 101 t02 103 llK 105 100 107 1Ga 109 110 111 112 113 11~ 115 116 117 110 119 120 121 122 123 124 125 126 127 132 0 la}Asls: Buyer has inspected the Property cr waives any right to inspect. and acce"ts the Property In Its "as is" 133 condition. . . . 1:l<\ fa (b) Due Diligence Period: BUferwill, at Buyer"s expense and II!Uhln 365 'da'yS' from EffectiV9 Date {"Due 13.5 Diligence Pencx:q, delennlllewhetherthe Property is suitable, in Buyer's sole and absolute discret1on, for Buyer's intemied 136 use and development of Ule Property as specified In Paragraph 4. Durilg the Due Dilfgence Period; Buyer may conduct any 137 tesls. analyses, surveys and investigations f'nspedions"} whld1 Buyer deems necessary 10 determrne 10 Buy~r's 138 satisfaction the Properly's en!}ineerlng, armltectural. environmental properties; zoning and L:onfng restrictions: flood zOIle 1~9 desillnation aJld reslriclions; subdivision regulations; soli and grade; avaifabllily of access 10 public roads, water, and other 140 utilities; conslslency with !ocal, state and regional growth management and comprehen&lve land use plans; availability of 141 permits, gOl/emment approvals and licenses; compliance with American lIioith Disabilities Act; absence of asbestos, soli and 1~2 ground water contamination; and other inspections that Buyer deems appropriate to determine the suitabill)l of the Properly 143 for Buyer's intended use aoo developmenl Buyer shall deliver wril1em notice to Seller prior to the expiration of the Due 144 DiligenGe Period of Buyel'. determination of whether or not the Properly Is acceptable. Buyel's fallure to comply wittl this '14~ notice requiremenl shan constitute acceptance ollhe Property in its present "as is" condition. Seller grants to Buyer; its 146 agents. contractors and assigns. the right to enter the Properly at any time dllring the Due Diligence Period for the purpose 147 of conducting Inspections; provided, however, that Buyer. its agenls. oontrac1ors and assigns enter tile Property and HI condoct Inspec1ioos at their awn risk. Buyer shall indemnify and hold Seller harmless tom losses, damages, costs. claims H 9 and expenses of any nature. includJng aUomeys' fees at all levels, and from Babnily to.any person. ari>ing from the conduct 150 of any and all inspections or any WD rk aultlorJzed by Buyer. B~r will not engage in any adMty that could result in a 1~1 mechanic's lien being filed against the Property without Seller's prior written consem. In the event this transaction does not m close, (1) Buyer shall repair an damages to the Property resulting from the .Inspec~ons and r-eturn the Property to the 153 condilion it wa:> in prior to conduct of the Inspections, and (2) BuyershaJl, at Buyer's expense, release 10 Seller all reports 154 and other wort generated as a result of Ihe Inspections. Should Buyer deliver timely notice that the Property is no1 155 acceptabre, Seier agrees that BlIyer's deposit shall be immediately returned to Buyer an!Une Con1raclterminaled, 1~ Buyer I ) and SeJhltr ( ) tB' acknDwledge receipt of a copy of tl1is page, which Is Page 3 01 5 Pages. F!orid.....5<JdBtjon 01 ReaI~. HI rigIlls re_. ~ 51..- Sooftwara. re lInd Add.d Formatting CopyrighU004 Atta $btr SofMare,lnc;, All Righb Reserved. (311~) t79.a898 189 1~ -Ai.1 1t2 193 19'1 U5 1'5 1J1 1DS 199 :roo 201 202 203 2" 205 2116 Jan 08 2009 3:02PM NASON YEAGER GERSON WHITE 5614710894 p.6 157 (I:) Walk-OIrougf:llhspevtlon: Buyer may, on the da~ prior to GIaaIng or any otbBr time mutually agreeal:ile to the parties, 1SS ccnduI:t .1lnal "waIIl.-throUgh" rnspecdon of 1I1e Property to delennit1e compliance with this JlaTagnlph and to enet.re !hat aU tIS PRlpcrly Ia on the preml&es. taG (d) DIIIc~: U1 1. Radcm GN: Redon Is 8 nalinlly occurrtne radloaclive gas that, when it has accumulaled In B buDding In sulldenl 163 quanfIlea, may preaenl hnlfh nsks III pemo.. who aJB ~8ed 10 It DY8I1ine. Levels ofraclon lhat 8lCC8ed ledel'll.llllld 1 n slat8l1a1c1e11nes have been founcIln buldings In Aorlde. AddftIonallnrom.tlon rwgardIng radQn and radm le8tilg may be 114 obbdold from yoU' county pubilc hefllh mt. 165 2.. Emrgy EffIcIency: Buyer I1'I8y have detemllnad 'he energy efIIcTeney rDIIng of 1he b.dIcltl'\lJ, if any is IoeaIed on \he 1&5 Real Property. 1&7 8 .FIiiAo\lI8U ar PR8F&IWl"IJ\IRIN9.Q&JifA"laor'FlERI&&1 lilli, _iB ..!..a..Ii,__ h. ':r-.d.. 11._ 'Po_,l-.ul* .1l.d J..i 1&8 b!' I .. _.d~_J ... 1._ r......_.1) L U._ . ... ... _r_.d&.d ~I.t.. II B....t._a __d ..B bel.... n_ _Ai I. U..A _411 .bd._~' ~: ~;;';~;:;;r'~':;;'~ ~~."~ ~:,:~~.:~~ ~~;.;,.;;::.;-;;~Ud~;~~~~~~ II", 171 ~ .' ,. i 112 9. RETURN OF DEPOSIT: Unless otherwi58 speclfled in the Oontrad. In the event any condifon of Uris Contrad Ia nut met 1 i3 and ~er has th1efy gIVen mlY reqund nollte regartlng tfIe c:a1difcn having not been met, euy.r'e dep:lSil will b1l rab.lmed 174 In accotdancewilll eppllcsble Florida Iawa and TeQtIt8tIons. 175 1!). DEFAULT: (I' In the eventlh&sele Is nut doted dUI to any deFaultoriaillQ on thepartofSeller,.r than tailln' to' ;"'ake-the tIBe marileIabIe d=r' dllgent effort. Buyer may ellber (1} recel'Ie a ..fund of Buyer'S depoelt(s) or' (2l seek spetllj: perfOTmllnce.IlB..,_. ~~ ~ J.- n .,cl:...4, 8e.1I~ .will... M.l~ ~ B.~_. rl>.II... 1I::iaI_"........a:..@lh... ~__...... r~ . lIdall illS Sel..let"s.aiJa s:d c10sI xmEr::ti. (b) In Ih& event the sale Ia not cIoIed due to artj default orfallure on lI1e part of ~er. M.le~" ~~.. ro retaln sl depOlIIil(S) pait or agreed 10 be paid by Buyer as llQI'8ed upon 6qufdatecI dall'ltlgel', con8l~l3IIon. far the execuIlon of.flW Contraet. end In ftIlsetllenlent or IIIIY claims. upon 'Which this Conhcf wll twmtr:l-',1..J) . I _...4iI'"~ .u.r~.., _ .U.1f S..... ,dtld._U._~....4~ '",IIl... -II ....." II... ...... _4 t .--"'1/ ~...~_ ~_,_ll. f\.ol:oc....j1I. 11 1IJ!l) ""'........1...... ..n. ftlrr-llll"l! J11UJih L.,.... L~ 'tlRu:fl! In _..oJ:[ ... ~ 4lJlls....l.lllr ~L I) .J1 t.. ill fuI 11..1l1li1 .f1l.. '1I11.J.lll tu. 178 177 111 17. 180 1&1 182 1113 184 11. AliORNEY'S FEES AND COSTS: .In erry cfeIm or cxmtrover.sy arIalng cuI of gr relBltng to.thIs 'Contract. the prevairmg 185 party. whicUor JU"POSBS oflhis pnwlsIMwtlJ include Buyer, SeIer BI'Id 8n:11ter. wilJ be awarded re&SOl'ISbIe atlomeys' fees, 185 c:os1s and expem8S. 187 12. BROKERS: Neither Buyernor Sellar ha~ utDizetl lie services of, or klr any other reaStm owes canp&n.satIon to, a 181 bnsed real eslBte Broker ather than: Ca) l...istha Bftlker: FIn""" 1=qtJIfI,.<;, I I r:, #I F/"rh{t# limrMtJ rhlllmfy t.:/mlP'I1'-Y who 18 0 lll1 11911nl of . a a bWlstIdJon bruker 0 8 nDnreprBSiHll&lIve and wtIo will bs (:OfT1pensate<l by J5lI SItler 0 Buyet 0 both ~ pursu8l'lt to 0 II IlsUnQ 8QRIement til olf1er (apec:lfy): (IJ) COD" Broker: who Is 0 en asJent of o a trensaellon brokor 0 8 nonr8Pl'~e and who will be compel1$Eledby 0 Buyer 0 Seller U both parIles purauanllo 0 ~~ M\S <<' ~'Ofrei of.compensation to a C009~ b!oker [J other (specify) . ,.:. '. (colledhrelJr mened to as "6rokerj in tonnecllcm Wf1h IUl)Ilct reIaIfng to !he PItlp9l1y, lnGIudinll ~ not Ihited to inquiries, Introducllgns, cc:lIlSUItalions and nego1iauons mtl"fng in 1h181rBnsac11on. Seller and. Buyeragf88 10 InderrI1lfy eJXI hold Broker hannless fIom auf against lesses, c1amages, costs Md expBnSer; of an, klrxt. 1m:1UdJng I'88SOnabIe 8Icmeyt.' fees ".aD levels. and from DabIIIty to IIJly person. arising from (1) comp8l1$lllkin eIaIIrled wt11ch Is b'1con8l1516n1 with tfle represerteIIon In this Paragraph. el) enforcemenl aalon to ccII9Cl a brokerage fie p\l'CUant 10 Paragraph 10, (3) any d\II.y accepted by Broker al the requeet of Buyer or Seier. wNd1 duty Is beyond tlwt KOpe of...-vlce. ngure.1ed by Chapter 475, F ,S., as amendlld, or (4) racommandalons d or nrvices provided end expenses II1curred by EIJ1Y tire! party wI'IOIl1 Broker refers, nlCOOImends or retains fcr or on beI1alf of Buyer or Seiter. 201 13. ASSlGNAmUTV: PERSONS BOUND; ThIs Contract may be assllJled to a related enIi)'. and oIIterwise I:J bI no! NB U$igfllllble Jr( Is 8AiQnable. The 1enns "Buyer;u "Seller" and "'Broker" may be slngutar or plunll. This Conllllct is bilding * upon Buyer. SeDer &ncl their 11m, peraonal reprasenlatlves. l!UCCeS$ClrS ancl assigns ,lflll5ligrment la permitted}. andS.JIet ( ) - b:?' - aanuwleclge I8C8Ipt of 8 copy oftll1$ pegs, wtlIch Is- Page 4 of5 Pages. I'bIlIa _or~AlI"&I*-.~.r~ ud AlUH FormaUlng CopyrJllhua04 AlIa SlarSoftwan, lite. All RIghts RaerYeo. (305) 279-6898 210 Jnn 08 2009 3:03PM NASON YEAGER GERSON WHITE '-)6J4710894 211 212 213 21~ 215 210 217 218 219 , 220 221 2Z! 223 22~ 225 226 'OJ 22e 229 2~ 231 232 233 234 235 23& 237 2311 23$ <~O 2~1 242 2.3 <<< 245 246 247 2.8 249 250 251 <52 253 254 255 256 257 256 259 260 261 262 263 264 265 266 267 266 1:1t OPTIONAL CLAUSES: {Check if ~Of the foRowing clauses are al>plicable al"tre mtached as an adoelldum to lhi5 Contract}' W !lrbilralion Seller Warranty Existing Mortgage o Section 1031 Exchange ~ Coa.stal Construction Control Une ~ Other Addendum o Property Inspection and Repair n Flood Area Hazard Zone 0' Other o Seller Representations 1-1 Seller FInancing Other_ 15. MISCELLANEOUS: The terms of this Contract constitute 1I1e entire agreement between Buyer and Sener. Modifications of this Conlract will 001 be binding unless in wnllng, signed end delivered b~ ltJe party to be bound. Signatures, Inllial$. documents referenced in lhis ContlOlct, counterparts and written mod"lflCations communicated eleclJOnlcally or on paper will be acceptable for ail purposes. includIng delvery, and will be binding. Ha~dwritten or typewritten tem1S inserted in or aflached to lI1is Contract prelleil over preprinted terms. If any provision of this Contract is or become. Invalid or unenforceable, ail remaining provisions will continue 10 beJul1y effective. This Contract wDI be construed ul1der Florida law and will not be recorded in any public records. Delivery of any written notice to any party's 3ger11 will be deemed delivery to that party. THIS IS INTENDED TO BE A LEGALLY BINDING CONTRACT. If HOT FULLY UNDERSTOOD, SEEK THE ADVICE OF AN ATTORNEY PRIOR TO SIGNING. BROKER ADVISES BUYER AND SELLER TO VER)FY ALL FACTS AND REPRESENTATIONSnlAT ARE IMPORTANT TO THEM AND TO CONSULT AN APPROFRIATE PROFESSIONAL FOR LEGAL ADVICE (FOR EXAMPLE, INTERPRETING CONTRACTS, DETERMINING THE EFFECT OF LAWS ON THE PROPERTY AND TRANSACTION, STATUS OF TITLE, FOREIGN INVeSTOR REPORTING REQUIREMENTS, ETC.) AND FOR TAX. PROPERTY CONDITION, ENVIRONMENTAL AND OTHER SPECIALIZED ADVICE. BUYER ACKNOWLEDGES THAT BROKER DOES NOT OCCUPY THE PROPERTY AND THAT All REPRESENTATIONS (ORAL, WRITTEN OR OTHERWISE) BY BROKER ARE BASED ON SELLER REPRESENTATIONS OR PUBLIC RECORDS UNLESS BROKER INDICATES PERSONAL VERIFICATtO~ OF THE REPRESENTATION. 8UYERAGREES TO RELY SOLELY ON SELLER. PROFESSIONAL INSPECTORS AND GOVERNMEHTAL AGENCIES FOR VERIFICATION OF THE PROPERTY CONOITION, SQUARE FOOTAGE AND FACTS iHAT MATERIALLY AFFECT PROPERTY VALUE. DepOSIT RECEIPT: Deposit of $ b1 0 check 0 other received 011 by . Signature 01 Escrow Agent '.. ' ~' OFFER: Buy~r offers to purdlase the Properly on the aIlove terms.and concjiJ9n,~Unless accepl~l')oe ~~ by Seller and a signed copy deDvered to Buyer or Buyer's agent no later tha~ ~"c.u a.m. t!i( p.m. o~ pZ;;r,a.eJ 411 i&~ -m "'" n,,,,,," a ,","ria Of.. ~::-hae~ k( I 0- 0c .-', . ~-~-=~~___ Dale: ./ C, /& '7 BUYER:__. ___~---'= Tax ID No: ;' Tille: TElIepl1one: Facsimile: Address: Date: BUYER: Tax ID No: Title: Telephone: Facsimile: Address: ACCEPTANCE: Seller accepts Buyer's offer and agrees to sell the Property ol1lhe above terms and conditions ( 0 subject \0"" ....".., """"" ""). ~...In~ ~""'wfM Dale: /...",- "', SELLER;~ ~,_ T8.l<IDNo: ......-:., Telephone: . Facslll1ile; TItle: Address: ~69 Date: 210 271 272 213 21~ SELLER; Tax ID No: Telephone: _ Facsimile: Tille: Address: Buyer' #-St- )andS.,Her( ) acknowledge receipt of a copy of This page. which is P$ge5 of 5 Pages. lbe ~ DI R....llIlnS ancllDcl!ll e""nI/JIIsoclal'lCB 01. Ion malllI "" ~nIlIliolt as 10 P\I!llilgel vaIIdiIy lOt 'dequ,ct or any PKl'/I$Icln 0( iii. term i1 .ny .pecrre ~ T/1i$ 4ttlldel'llzad bm 8I1Qtid not be U$.d .. COlllpl"" nn~ac\ionJ Of wlUt llltten6lv. liNn 01 .adcflCiotls. ThiS form is, lIYIIiIabla f.. .... b)' the en" .....1 _Ie lllC1llotry ancI ;. IX>! Int.ndlld 10 JcIll1\l1)' the ....... ... Ralklr. Reallar i& a ..,gIoleM cdIactl\oo membership_k Illa.may l>tl used only b)' re. ..,1* licen.... who..... _",HIs vi .... N._ A.a saeTallan ct/ RuII<tB.nd who alll>.ocribo 10 IIa Code ct/ EIhico. The coprriQhl__ af1hD u.ed $IaIe. (17 U.S, Cod..} feoJoJd tIl. ....uthorlzlld repnodllcllon D' bIanIc ''''''''' by any rrwon..lndudinQ Iaosimilo 01 wmpute'ed Iort!la CC-2011l!l7 Fl<>tId>tANocito1lonQ/ Ft,'-.A/1ri9Jl1s reo.MId. L~IzlAllaSlar Software. $~f1want arid Adcl.,d Formatting Copynght 2004 AtIa Star Software, me. All RJ~1t1$ Reserved. (305) 279-0098 Jan 08 2009 3:03PM NASON YEAGER GERSON WHITE 5614710894 p.8 ADDENDUM TO COMMERCIAL CONl"llACT 1. Definitions:. The following lenns when used in lhls CommercIal Conlraet (1M MCon1r8Cl"') DaIl have Ihe following meanings: (a) GovcmlDaltal Autharltir.s. Any BUd all fI:dcnI, &tUe. county, mumdpaJ or otbef gDva'lImenlal dcputmeul, enllt)'. authority. commission, bClllld, bureau. court, BgOlll:Y or any instromcrrtality of an,. of IhaD. (b) Goyernmental Reaainmle.nt. Any law, ena.ctment, :ltaIIIte, cadt, ordinlllc:e. ruJe. rqulalion, judgmeu1, dccn:e, writ, injunction, Dancbisc, permit, certificate, kense, mthorlZlllion, aareement. or oilier direclioo or requirement of any. Governmental Autbom, no... existing or be~ eucted. adopted. promulgated. entcrccl. or issued app1icable 10 the Seller or Property. (c) HazmIous Material. ADy flammable or Cll;plosive mllterillls. pcimloum or pWoIcum product.'!, oil, crude oi~ natural ga! DT ~c ptJ u:ablc for fuel. radiolll:tive malcrials. hazard~ wastes or substances or toxIe wastes or ~Ilbsunccs, includin& witbolll limtlation, illY substIulees now or bclcafkr defined as or included In !be definition of "hazardous StIbslances," "bazardous W8S1cs," "bnlrdous mal.erials," "to= m:dcrials" or "loldc substances" under lIII1 applicable ~ental RelJuireme:ats. . 2. (a) ~. Notwithstending II1}'thing to t:'Ie contruy col1laincd in the Contract, inc:.Iuding. without limitation, Section. 700 of1he Colltrllet (i) from. the Effecttve Date until tile Closing Date, ~ shell bave the right to c:nter the Pmpat)' 10 perform 811)' Inspections provided such right sbaIl IIOC chlllge !he DIle Diligeuce Period; (ii) Bvya- shall bear no liabiJity fOr the results and/or findings of any environmeut.ally related InspectiollS pcdormed; (iii) if Buyer's h1spec:tlons an: l1DIIeCCptable 10 Buyer for eny or no retlSOZl wh8lSOllYIIT, wllich c1cterminadon sbaI1 be in BlI)'Cr's solo end Ilbsolulc dlxmiOll, BU)W may terminal:e Ibis Conlract by wrlttE:n notice to Seller Qr Sdlc:r'sl:ounse.l ~ no later than the ~ day oftbe DueDlligenec.Pmod, in which C8SC the D~sit shall immediately be Jetumcd to Buyer, with~t tile consent of Seller or any other pcmon or entity being reqnUcd. Mld both parties shall be relicved of all obligalHlIIS hereunder; (iv) if Ibe Deposit is not retnmcd widJin three (3) days of Buyi:l"s Im1IinatiOll, Buyer shall be entitled [0 1hc rcIUm of the Deposit toge:thi:l' with my. attorMys' fees and court com associated with coUectioo; (v} in the evCllt tlUlt Buyer's inveSligation of tile Propc:rty is satisfa.ctory II) Buyu, Buyer sbaIl deli~ to Escrow Agmt prior to 5:00 p.rn. on the finll da.y of the Due Diligelu:c Period the addilional deposl1;'UJd (vl).Buyer shill mab tin: initial deposit will1in three (3.) days after the Effetlrve 0&1e. Buyer shall have the right to Q.tend.the Due Diligmre PeriPd by ODO IlUlldred eighty (180) dll}'S at Buyer's election, 8J\d in Buyer's ,ole and absolute disaeti~.' .,' (b) ~. The ProJlCfl:Y al tbe time of Closing shall be subject to no licos,.c:barges, mortgages, leases. cnc:wnbralltcs. easements, restrictions, c:acroacbmcnts. exceptio!1$, reservations or olber matters of any kind of dwactcr wh~er other than tho following: (i) aU real estate W:C$ not yet due end payable, (n) easemenls reserved in WamJlty Deed recorded March 23, 1971 In Offieial Reoords Book 1813, Pasc 1255, DC the Public RcCOTds ofPabn Beach County. Florida. (lli) ea5C1DC1\tin fawrofFlmida Publie UtilitinCompllllY r=>rtkd 01:Iober21, 1976 In Official Records Book 25%, Page 171S, ofthc Public Rceocds of Palm Beach County, Florida, and (iv) Right-of. Wrry of Gulfslream Boulevard sn U.S. HIBhway No. l lL'I now laid ont IIIId in use.. '. . ._ (I:) AOOfDYals. Buyer shall have the ri1;ht during !he period aftcr.dJe Ei'lbl:tivc Date: 8Ildprior to 1be Clo5ing Date: 10 obtafn the fioal (including the expiration of all ap~al periods) unconditional &ranting of a/IlCCCSSlUy rile plaus, pla1s. IltUity aDd drainage permits, licenses, lOOlICUrrcncy reser\'atiom, mll\ccs, special Q((:epUOll5, 'R:ZOnings and other approvals from Governmental Authorltles (co n ectively , ilie "Dt:vdopment Approvals") whicIJ, in the sole judgment llfBu:ycr, me ncctssary to permit tho c:onstnJdion IIIld operation (ir.cludillll approaches- md curb wts) of a projecl of Buyer's RVOTCd size md design (the "Buyer's Project"). Seller agrees to cx.c:cute or join with Buyer in executing my application or OIhcr inslnlment necessary to obtain the DcvelopmCllt Approvals and to lIS.!Iist Buyer in obtaiDing smne. including. without limitation, authorizing Seller's consultants to COOJIllete sw:h worlc, but only to the extent requested III1d paid for by Buyer. Buyer sluIU pay all reasonable CxpcIlStS of' obtaining the Development Approvab from 1bc gQl'emmcnl At ClosiDg of the transaction contemplatci:l by this ConlJa(;t, Seller sbaJt execute any and all tell$onabJe docurnent.atlon neccssllI)' to transfer to Buyer tft]e to the Development Approvals. Seller shall not'k obliptcd to sign or authori~ lIJI)' Developmmt Approval wbictl would advCl'Sely Impact the Propct1 inlh'e :cllSOOable j\ldgme.11t llfSdler, urtless sucb Development Approval is not binding on the PlOperty UIllil after Closing. . 3. Seller's Rct>resenlB1ions. 3.1 RccreSCl1tations.oo Warranties. As a materlallnduUIIlCllt to Buyer tll execute lhis Contraet and am~ this lr8nSIIetlon, Seller represents IIlld WIlITlIn13 to BlI}'CT as of the ttTective Date and as of the Closing Dille Ihlt: (i) Ofl~;mization and Aulhoritv. SeDer is duly organized and In good staIIding, validly exists. and is qualified to do busillesa in lilt stak: whe.ctbe Property is 1000000ted, end has the full right and mthority and hIS obtained aU consents required 10 cntel' into litis Contract and (;on~1IIC tJu: sale. This Contract and aU of the documents 10 be delIvered by Seller 8t the Closing have been aad will be Mlthonzcd'1lI1d properly executcd and will constitute the YIllid 8lld binding. obligations crr Seller, cnibrceablc in accorduce with tbcir terms; (Ii) No Le281 Bar. Th.c exeCutIon by &:Iler of Ibis ConlIBCt and the COI1$UOlI1lBtion offhe tJansaCtion hereby contemplated docs DOt, and on the Closing Date will nol (a) result in a breacb of or default UfIder any indenture, agrec:mcnt, iDSlnlmtllt or obIigafion affec1iDg Seller or II1y pordoa of the Property, (b) result in the imposilion of any lien or eacumbl'BllCCl upon Ihl! Property, or (e) con3til\Jlt a violation of lII\Y Govm'lmental Requirement; (Iii) Contraaors and Supuliers. All contrsdors, subconlr8Ctors. supplie:s, II'chi1ectr, enginecrs. and otbers who lIa.ve perfomed seTYiccs, labor, or ~Iied fOlIteriaI in r.:ormeetlon with the Propa1)' have bce8 paid in filII and alllims arising tnerefTom (or claims which with the passa,gr: of time or QOtice or- both, could mature into liens) have been sailitied lIJId JDleased; (iv) No Demult. Se.IIer is nol in dciault mder any iDdcnbJrc, mong.... deed of'trus.t, loan agreeDIent, or lllbu agreancnt whic:b affects an)' portion l)f the Property; (v) CIlmDlimce with Laws. The Property and !be present U5Il.!l ther=of are in compliance wilb all applicable Governmental Requirements;. (\'11 Title. SellCl' is ~ owner of good IIJId markclable title to tht Property, nee an,r cle1ll' of all mortgqes, liens, cnClllllbrances lIIId restrictions of any kind. cxeep mortgager and ellOO1IIbrances of record which will be paid and removed on or before Closing by Seller; (vii) Lilinlion. There lire no Kllons. suits, proceedings or lnvc:sligalions (Including condemnation OT slmil. proc=edings)' pending or; to the knowledge of Seller, lhrell1Cned Bg1Iinst SelIc or the ~ md Seller is Ilot aware of any fllCt5 which might rcsuh in any suc:b aetion, suit or proceeding, If Seller ir serw:d with process or receives notl~ that 'itigation may be commenced against it, Seller shall promptly notify Buyer; (( ~ r Jan 08 2009 3:05PM NASON YEAGER GERSON WHITF !"614710894 (vi ii) Conlnlcts. LCBSeS and Parties in Possession. There lInl no partics other th!lJ1 Se lIer in po ssession of llIly portion of 1tIc: Pr()perty as lessees. lelllllt5 at sufferance or trespassas. There are no associations in ex.isteDcc affecting tbe Proper1y, except as recorded in the Puh lic Records of tbe Connty wbere !he land is located. Exclusive possession of thll Property shall be given to Buyer al Closing. and at Closing the Propmy sball be Wloccupied alld free of any lea~ license, occupancy agn:cment or other right of possession or claim by anyone odler than Buyer and at ClosiJlg thefe shall be no service contnlc:ts. management agreements or other conltacts or 8gl'eanenlS affu:ting Ibe Property; (iX.) Insolvency. The Seller illls nl){ made an assignment for the benefit of creditors or adrnttted b writing i1s inability to pay its debb lIS they matwe Dr bllS been adjudicated lIS bankrupt or has flied a pdition in volun1llJy bankro.ptcy or a peJilion or answer seeking reorganiZlllion or an ammgc:ment with creditors ID1der the federal b&llkrupicy law or Ill)' other similar law or statute oftbc United Stllies tlf llI1Y state and nO$uch petition hIlS been filed agail1$t it; (It) No HllZBrdousMaterial. The Pro~erty h-.s nOI in the past been used IUld is not presently being used for the handlillg. stlll1lgC., transportation or disposal of HllZlIIdous Material. There 1IiC llO underground storage t1IJtb located on the Propaty. Seller has no knowledge of ll!I)' violll.tion of environmenlallaws related to the Property or the pn:sence or release of Hazardous Mafa'ials on or from the Property. If the Property is cOlllllminabed with any Hazardous Material, Seller shaD, at Seller's cxfJCnse Jlrior lD Closing, remediate and clean up all contamination and shadl obtain a "No Further Action" letter from all applic:able Governmental Authorities in favor of Bllyer; (xi) Employees. There 1IiC no employees of ~ Seller, allhe Propel1y or otherwise, who. by reasons of any Gcvemmentalll.CGllinment, Or by reasoR of any union or other employment contract, written or otherwise:, or any other rellS<>ll wbat50ever, would ~ome employees of lilt Buyer as II resnlf of the purchase of the Property by the Buyer; (xii) Air Rj1/ht~. Neither the nir rights over tbe Property, nor IlflY other "deyelopment rights" with respect to the Property have been assigllcd. lJansfem:d, leased or encllmbered; (xiii) Events Ptior to Clo.sin2 and Other Infonnation. Seller will we its best efforts nol to callSC or pCJ11lit any IlCtion to be Illken whiclt wOllld cause any of tbe foregoing ~pn:sen\ations llDd warranties to be unlrtJe as of tile Closing Datc. Seiler agrees to immedialely notify Buyer in writing of any event or c()Qdition which occurs prior to CllJsing, which Cllll5eS a. change in the {acts rtJa'ed to or the: troth of any ()f the above reprcsenllllions; ()(iv) Sales Taxes. All sales taxes required to be paid- or collected by Seller in the operation of the property have been collected and paid to the appropriate governmental authority through 11 current dale. No person, firm, co-rpOnltion, or other entil)' has eny right offirsl. refusal, oplion to purchase, or othcr right or option to acquire the Property or any portlem llJereof or lease allY lUlditional space:, except for the rig)Jt of first refusal (the "Right ofPust Rcfusar') lIS set fortb in Ihat certllin Restrictive Covenant and Right of First Refu5al recorded in Official Records Book 227&8, Page 1102. of Ibe Public Records of Palm Beach COtlllty, Florida (the "Restrictive Covenantj; and (](V) OFAC. Neither SeJler nor any related pe;sorl (}f Seller is or has been subject to the prohibitions cClnUlined in Executive Ord~r No. l3224 (Sept. 23, 2001) (the "Ordei"), or any other similar prollibitions contained in thc roles llIId regulations of Offite of Foreign Assets Control, U.S. Do:;panment of TreaS'Ury r'OFAC") andilJl in any enabling legislation or other Ucccutive Orders in respec1 thereof; or owned Gf controlled by, ()l' acts for c.r ():1 behalf of, any person on IlDY government list or any other person who has been ck:ttrmiDcd by a. governmental authority to be subject to the prohibitions contained in the Order. Seller agrees IlJ defend aud indemnify the Buyer against any claim, liability, dam~ or expCllSe =ernd against Or sufttred by Buyer arisin~ out of the breach or inaa:l.Jr8cy of IDly StIch representation or VlWT3I11y. The reprcs'entations and wllJTlUltles set forth in this Article llTC made as of the Effi::ctive Dale of th e Contract and ar1' remade a...~ of the Closing Dale and shall rtot be deemed to be rouged into or waived by tl1e instruments of Closing, bUt shall survive the Closing for " period. of one (1) year. 4. &eUer'sAffirmative Covenants. (1) Acts A1fectini! ProDCrtV. From and after the Effwive Date, Seller will-refrain- from (a) performing any grading. excavation, conslroction. or removal ofony improvcmCllIs, or making any'othc::r change or improVenlCllt upon or about the Property. (b) enteril1g into any backup contract or similar agreement for Il1e Property or emering into, creating or incllrTing, or suffering 10 exist, any easemell1, mortgage:, lease, lien, pledge, cOlllrac1, or other agr~ents'l)T ClIcumbrances in any \>lay affecting tIle ProPert>'. exc:epl for the PreClosing Loan (ll5 hereinafter defined); and (c) committing any waste or nuisance upon th~ Property; (ii) Mainlenancc ofProDCrtY. From the Effective Dare llntil the Closing. Seller will observe all Governmental Requirements, remedy all code violations and satisfy all requin:ments necessary to properly close all open permits prior to Closing; (iii) ~. Seller shall !urve sole responsibilil)l for payment or any sales tax attnOulable to rents and other revenues received or payable prior to tb.e Closing Date; (tv) Rcsbicthe COvCIlllllt SeUer ~by al!fees to submit this ContraCt to the eRA (as defifled in the Restriclive Co....enant) within five (5) bl5iness days of the EffCl:tive Date in the manner and in accordance wilh Section 3 of the Restrictive Covel1lllll; Sellcr shall provide BU)!er with writte:o evidence oflhe CRA's response prOlllptly upon receipt thereof; (v) Survival AJ I covenants and olJligations oCSeUer and the other provisions of this Section sball rurvive the Closing; (vi) Further Assurances. In addition to tile obligations re1juired to be performed hereunder by Seller at the Closing, Seller agrees to pc:rfOl1Jl such other acts, fIDd to execute, lIclrnowledge:, and deliver $Ubsequent 10 the Closing suca other instruments, documents, and othcr materials as Buyer may rcasooably reqlleSt in order to effectuate the C:Onsumm!!1iOl1 ofthe !rImSllcti= conlernl'latcd herein and to vest title to the Properrl in Buyer. 5. Conditions. Notwithstanding anything to tile contrary contained in Ibis Contract, in addition lO all other conditions set fort.i hetcin, Buyer shall nDt be obligated to close IUlless and until ead of the folllffl'ing conditions (collectively, the "Conditions"') an: either fulfilled or waived. in writing. by Buyer: (a) SelJer shall have timely penormc:d all covenants, agreements and obligations lIld c:.omplied with all conditions requin:d by tbis CCI!ltraa tll be performed or complied with by Seller prior 10 the ~g; (b) all conditj0J)5 to Closing otherwise contained in this Contract shllll have been satisfied; (e) all of Seller's representations and warranties s!lsJl be trIle and eom:ct as oftbe Effective Dale IUld the. Closing Date (for PIITJIOS~ of this clllUSC, 8 represenbltion mall be false if the factual mailer that is the subject of the repre:senlation is false notwitbSUlrlding any Jack of knowledge lJr notice to the vartY making the rqlteSeJ1lation); (d) the SWlIS of title to the Property shall be as requir<<l by this O:mtract, (e) the Propert;y shall be:frec and clellT of pollution, debris and/or Ha:wdous Material whether vi.sible Ot nclt. (1) there shall exist no actions, suits; a:rbilrations, claims, Ilttaclunents, proceedings, assignments for lbebeneOt of creditors, insolvency, bankruptt:)', reo~glll\ization or other proceedings. pendiog or threatened qllinst the Seller or the Property that would advcrscly affect the C1pention or value of the Property or uhis Contract or 1he Seller's ability 10 pc:rfonn its obligations WIder this Contra.ct, (g) tIlere shall be no gC1lCrllI moralori\lm or similer restriction imposed by any Governmental Allthorities OJ" utility supplier with respect to the isSllance of /- .".... ,...,.~~~ ~ -"""" ""'"". .. """', ProJ,,, Md ~) ~,eRA '''II ..~ """" ~, Rig'" off.... Jan 08 2009 3:05PM NASON YEAGER GERSON WHITE 5614710894 p.10 Refusal BIld Bl1yer shall line been previded witb written COJlflml8tlon fom the CRA acceptable to Buyer of such waiver. If the Conditions have DOl been satisfied as oftbe Closing DIU:, then Buyer cm eled to (I) temllll!Ite this Contract whereupon all deposits whatsoever shall immediately be retDmed tD Buyer and aU parties sbaIl be: released orany filrtlJer liability~, or (Ii) _he sum msatisfied Coodition$ and proceed to Closing. provided that If MY Conditions IIrIlIWl SlItisflcd clue 10 Seller's breach or dcfllUlt under-this CoRIrad, Buyer :shall be IlIltitled to all remedies available UDda- this Cmtract NotwithstancHD& die filJegolns. in ~ event that SeDer enbs into any .IIgTCe11ltnl, Ieasc, mortgage or any other mc:umbru\c:e a:ffectlng tile Propeny, Selle.- sbaU additionally be liable to Buycrfor III damages n:slIlting therefrom. In the eventlllal Sc1kr brcacUs any repl'lCXlltatim 01 warrmt)I contained in lhis CODtJ'llCt. aud Buyer discovers 511Ch breach prior to Closing and elects to waiw such breach 8J1d 1:10$10 1bis lnInsution, then Buyer shall nol be able m sae Seller afillrCIo5ing for Seller's brcac:h ofsuc:h repn:seal2Jlon or warranty. 6, Closing. Date. Notwithslmding aoytbing to ~ contrary COIIIlIfned In the Cootract. including. withCllt limir.tiou, ~ of the Contract, Ihe trulsaction will be closed in the offil:e oftha Escrow Agent or fta "midI awa.,/, ifrequested by dthcr pmty (lk "CJosing-), and die closing dale (the "'Closing Date") shall be the date dud fs 1m (11)) d. afta tm el(pil'lltion of the Due Diligence Period, unJess Buyer eJects to clooc soonrz in wDicb il8SC the Closing Date skllU be the dete designattd by Buyer to Seller pn,vidcd B1Jyrz shall gjvc Seifer at least ten (10) days advllu~ written I\dic:e of the ClosiDg Date.. 7. PreClosin~ LOIIIlIo Seller. In the O'Ic::nt dull (i) thll eRA elects not to e.xerelse its Right of First Refusal II11dcr the Restril:tive eo....enant, (ii) tbe CRA subordinllles its RicJlt ttfFirsI Rmual to the PreCloalnj Loan (as hereinafter de1lned) purSUPlt to a Subordinaticm Agreement ~ecufM by the CRA BIld ill flJl]ll BDd contmt reasonably acceptable to Buyer, (m) Seller Itas provided ~ mOl written evidence oflhc sa1lstlII;tion of1t=ns 1(i) and 7(1i) above (c;ollcctivcly. the NCRA Delivcrles'1. md (iv) Ibis Coll1JaCt has not been terminated prior to the PreClosing Loen Data ellS benrlnafter dl:8ned), Bu.yer, or OIl entity deailDated by BuyQ' (tbe "BuycrlLcndc('). shall provide Sella a loan (tel be SBtisfied by Sella- at Selb's solll I:ost IIId expense prior to the Closing Date) in the total amount ofEifPJt Hundred Thousand 8J1d 00/100 U.s. Dollvs ($800,000.00) (the ''PreC1osing Loan") to be c100ed IlDd funded ClI:I ~ dill" that is dJl: later of: (i) lbirt)' (30) days B1\cr the BffeW\'C Date, or (Ii) seven (1) bllSlness days after the Buyer hlllS been pnwided with the CRA DclivenCli (the "PreClosing Loan D8.1B"). The PreClosing Lo8n shall be seared by II first IDOrtgage on the l'roperty and s}ulll be evideDccd by the followin& JOID. documents exccuWd by the Seller, lIS borrower,lIIId NDRDen Goddard (fie "GGnmmr"), as ,applicable (all in fOJ11\ and content acceptable to Bll)IedLender): (i) Promissory Note (Ihe "Nole"} in the fllnn a1l8d1ed llereto as ExWblt uBI>. (ii) Mortpge. Asdinmenl and Security Apeemeut (to be rec:orded In the Public: ~orcls of Palm Beach Coonly. Fkrida) (the '"Mortgage'') in the form attached hereto il! ExhIbit "C". {iii) Limited Guarimty of OuarButor llttBclJcd hereto IIId made a part hmof lIS Exblbit ~D", (Iv) AssignmcJl! of Leases ilIId R.~s (to be recorded in tJI41 Public Records of Palm Beach Couaty, Florida). (v) EnvIromnenlaJ lDdannily, (vi) UCC-l Financing Slatllment (to be m:orded In the Public Records of Palm Beach Connty. F10r ida), (vii) UCC-l rllWlcUag Sblkment (to be filed with the Florida Secretary of Stste). (viji) Bonower's Affidavit, (ix) Loan ClQoSing Stak:mcnt, (x) InSllTlIm..e Anli-CoCrclOll Statement, (xi) General SUbordination of Debt Agreement, (xii) Flood Hazard Notice, (xiii) Compli_ Agreaneat, (xiv) Aarecment to pJ'OYidc lnsul8D~ and' (.Jlv) Certifil2.te of Resolutions, ScatDS, lnamlbency and Consmt of the SeDer IIU1OOriUD& Ibt: PreClosing Loan (col1ec:dwly, 1be MPreCloslng Loan DaClllMtlls"). The N<<e secured by tht: first M~ 011 the Property in favor ofBuyalLcnder shell be In ~ princlpall!ll1ount1::lf Eight Hundred Thousand lIJ)d 001100 U.S. Dollars ($800.000.00) bclll'ing interest at the folloWing l1IW for tbl! follow/nil time periods: 1.) Zero pCll:ent (Ilo/.) per IlMUm only mr the time period bc:ginning on (INSEIlT DA.TE Ll!:NJ)ER FUNDS LOAN (the "Note Date")j and eoding on llNSDT date tJm is R.l.~ (90) t1le:11dar ds;)'S after the Noee Date (the "Rde COIlIlDeJ!leemeDt Dah'")] 2.) Wall Street Journal Prime Rne (or a ~parablc Prime Rate selected by Lender if same is net reaalily available and recelc:u1ated by UDder 011 a monch1y basis) pin four pc:n:ent (4%) per annum or seve.! pert:Qlt (7%) per annum. which - is greater, fOr the lime period beginniog on the Rate Commencc:ment Date and ending on IINSEBTI (tile followillj; DiDCty (90) caleadlr dll'1 perIod); lIbd 3.) Prime Rate plus six pcrunt (6%):per 8IlD1IlII or eigtrt :percent (8%) per annum, which eVeI is great!%, fur the time period begirming o-n IlNSEBT), 2009 ud I':Ildin8 on 11NSERTj, 2014- (the remaiaiag four lIDd one b..lt(4 ~)year caleadar cby period) (the "Applicable Interest Rate"). All outstandin~ ptiDclpel and all accrued lnn=rest IIJ1d other amolDlu due under the Note shall be payable in M1 sixty (60) PlOlIlhs !Tom the PreOosiDg Lou Date, IlDd the principal end in\l:resl payment schedule in the N<M shll1l be based upon 1IA lQIlortization sc:bedule of 1JIree hundred sOcty (360) monthS; with the Seller paying principal and interest payrmmts mootbly ~ BuycrlLender. I~ paymill1lts sball be calculated on the basls oftbeatluDl number ofdays elapsed dIvided.by tbree bunched siity (360). On or prior to the Pn:Closing Loan Dab:, Seller shall at Seller's sole cost and Cltpense (I) provide BuyerlLmder a mortgagee tide policy aDcI original marked up title commitment naming BuyerlLcoder a!I the insllred nlCIftJ8&U with all ~ulrcmcnls and stJmdard cxceptioos deleted md otherwise in form and content acceptable to Buyer/Lcadcr, and me1udiog. 197C, ~ in J 984 policy jacket, deleting creditor's rights, a clean, 1IIDDodlftecl Florida FOlTA 9, IRl Survey title end<mlemcnts and socii oUter tltle c:OOmsemenb available in P1orida, reIJIIlred by Buyer;lLcnder, (Ii) prowde an Opinion Letter from SeWs Counsel ill fonD and c:anlalt acccpbble to BuycrlLender, (Iii) pay all title IaslIrano:: costs and pranlums (Including withoul limitatlon, the ~ts of all title searches, policies lIIId endonanents) and all documerIfIlry stamp tMes end inblDgible 1aXeS due in l;lODIlKlion with 1I1e No~ and PreClosing Loan Documents, (iv) pay all Seller end Guanmtor ~ rcasoP8hly required by Buyer/Lendcr, including. without limitation, UCC searches at the stale and COUllty 1~1s, UCC name variaUon sczl'l:hes, fixture sean:hes. Fc:denl real estate: ~ord searches, Fedl:11ll tIIlC IiCll :searches, State tax lien sc:an:hes, environmental lien searches, local defendant suit Sl:IlIl:hes. localjudgmc:nt searches, Federal defendant searcbes, Federal judgment 5Cllrclm and bmIlJuptcy selU:C~, (v) lID Insured CIDsillg Proteclion Letter from the title eo~ In favor of BuyerlLender, (vI) a Certfficale of Insurance fot the P'rPpcrty namiD& Bayer/Lender as en additional insured reIlec:ting the required msul1lllte COVeRse IIJId IrJlCUnts rcquind by BuyerlLmder, (vii) fully executed origlnals of all PreOosinsLolll\ Doxuments by Seller and GlnrBDtor. a, apprlCllble, lInd (viil1 e Memorandum f1ftbis Contract wIIich shill] be ~ ~ J~n 08 2009 3:06PM NASON YEAGER GERSON WHITE 5614710894 recorded in the Public Recmds of Palm Beaco County, Florida. Buyu/Lalder shall pay its own attorneys' fees in ronncction with th~ PreClosing Loan. Seller shan not be requi~ to furnish a new survey of1be Propert)'. In addition to other pr'ovisions required by BllyClILCIlclcr, the: Mortgage shall prohibit (i) any :scconclery financing or other ellcumbl1lT1ces OIl the Property, and (iil any tranlifers of intetCS:t in the BClrrtlWer Or the Ptopelt1. Notwithstanding anything 10 the CODlTIlTy contUncd in the Coolmct or this Addendum: (1) in the event thlll prior to the PreClosing Loan DB~ Buyer excrci:ses its right to tr:nninale this Contract pursuant to Section 7rb ). which election shall be in Bll)Ier's sole and absolute discretion until th c expillltion of tile Due Diligeace Period, Buyer (induding any designee of Buyer) shall Mve no obligalion 10 provide the PreClosing Loan to Se~ler. this Cornra.ct win termine%c IlIld be of no furtlJerforce and effect and the Escrow Agent shallllutomaticaUy refund the Deposit togd:her with all inleTeSf earned thereon tD tl'le Bu)'Cf withom dclivering written notice to Seller, or eii) in the event Seller uses good faith commercially reasonable effQ~ to comply with all of th e furegoing requirelJ1enlS rel.-d to lhe PreClosing Loan, but is unable to ;;omply with all of the foregoing by May 13. 2009 and BllJIcrlLendcr elects not to make fue PrcC\.osiDll Loan. then ~i th=- Seller or Buyer/Leoder by wri~ noti~ given 10 the otha no later than Mil)' 14. 2009 mllY terminate this Contract in ....i1ich eYcnt this Contract will tenninatc and be of no further fon:c IlI\d effect ll1ld the Escrow Agent shall automatically refund the Deposit tDgcther with all interest cllTI)ed thereon to the Buyer widiout delivering written notice to Seller. Upon Escrow Agent's disbursement of the DCjJosil to Btl)'CJ. Escrow Agent shall automati~lly be released from any and all nability mated under this Contract or otherwis<: i~ connection with the es<:rowed Deposit, without the nt~<:essity ofBlIyc:T aod Seller, or either, exeeuting any dOC1lmcntation. 8. Escrow Aeent.. Notices and Exchan~e. Buyer and Seller bereby release Escrow Agent from my claim and each agrees 10 IndCUDlify and hold harmless Escrow Agent from and of any claim or loss whats~. includinll attorney fei:s, elCCCpt for gross and willful misconduct orEscrow Agent; aIld further the parties each agm: to look only to the Dthcr party to th.is ConlrnCt (or an,. purported improper instru~Dl1, action. paymenl, claim or loss doeri~ed from Escrow Agent. F.sccow Agent shall be elll:i11ed to repteseat Buyer or the Escrow Agent relative to this transaction, tnd all parties waiv: any right tt) ohject 10 any 5\lcb rCjlJCSenlation, due to conflicts of ill1ereSl Dr od\u concerns. If any of the parties to this Conlract desires to exchange other property oflike kind IIJ\d qualifying use within the meaning ofSectiol! 1031 of the Internal Revenue COde Df19~6, lIS amended (the "COOe"). aod its accompanying ReguhrtiQIlS, for !be fee simpLe title In or proceeds of the Property, then ~ pmies 'cllCb agree: to assist ont anOlher in the consummation of such tIMsac:tion(s); and the parties reserve the right 10 assign their Tcspective rights (but !lot obligations) hereunder to a Qualified Intermediary as provided for in tile Code or before the: Closing Dale, !IS may be: necessary to at:compllsh a Section 1031 Exchange -under (he Internal Rel'enlle Code, provided the assisting party has not made and does not make any representations or wammties whatsoever regurding Sllch attempted exdnlTlgcs and. the. assisting party shall incur no additiooal expense or liability and the excbMg.e shall n at delay Closing. Any notice, de:m.and, instruction or other communication to be given 10 other party hereunder. elCCept where requ~d to be delivered at the Closing. shllll be in writing and stall eitlJer be (a) b<md-deli'v1:rt:d. (b) Sllnt by Federal Express or a c.Cl1DpllIable ovemight mail service, or (e) sent by tdepllOnc'faC$imile transmission to Buyer and Seller at their rcspecti1le addrellSelI s~t folth iTl1h1l COIltI'aCt.. Notice given to a party's counsel shan. constitute suffICient notice to such party and no olller Dotice need be gil'en directly to such party. Notice shell'he deemed to bave been given upon TeCeipl or refusal of delivery of said notice. The addressees 8lI.d addresses fortbe purpose of.this-pangraph maybe elumged by giving notu. Unless and until such writien notice is received, the last a~and 'nddrcss stated nerdn shall ':le deemed to continue in effect for ell purposes,. 9. Conflict. In the cvml cf 1Ul)' oonflict beIWeeo the terJIls, conditions or other provisions of !hi s Ad~dum and the terms. cooditions and other provisioDS of Ihe Contract, to which this Addel1dum is a part, the terms, COIlditions and other provisions of this Addendllm sI1all cootrol To the extent that there shall be no sach conflict, lI1e Contract snail remain in full force lIlId effect and the parties hereby ratify same. I (). l:Jptice IIDd ODOOrtunitv to Curc... N; lI5ed in the Contract, the word "defautt" shall mean a breach of , IU1y term, covenant or condition contained berein, and, exce:pt for the Dilure to timely close, such defaultiog party h1L5 failed to cure the same within fifteen (15) days from receipt ofwritten notlce from the other pllrty specifying the natUre' of the eJleged default. 11. s;RA :Notice. In the event that the condition referenced in Set:tion 5(h) of this Addendum is nol satisfied within sixty (60) days of the Effective Dale of1his Contract, then eitber Buyer or SellermB)' terminate tills Contract by wnlle:n notice to the other no later than May 13. 2009 (the "eRA Notice Dale"), in which case lhe Deposit shall.ili'lI"J1cdi!l.tely be returned to Buytt, without the consent of Seller or any otber pr:rson or entity being reqoited, and both pllrtics shall be relieved of all obli~lons hereunder. . . SELLER: ---: I:\W .pLO\Ll546O\OOJ\Aclclcndum_NSG_3600_ {) 1-06-09 _Rev _ S.do.:: ~ I?/ Jan 08 2009 3:07PM NASON YEAGER GERSON WHITE 5614710894 p. 12 .r . .. .. '. l)tI'Io M FI1m ...'" ~, """*. IlllIr. pat"'lty ISuatIied III . o ' . .....111 Of _....., 1IiI1IHfwIV'" ... ~ I!lUt .......... ClnIM' ~fllft Uu of.... " ~........ "'m h8Q c:..nrr. "1MeI1l_ ................ .... UIWt. c8IIIINIlt " .... ..., __ ....,.,. pGlW rIQ1NI.....~.. 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[ Jan 08 2009 3:07PM NASON YEAGER GERSON WHITE '-'.614710894 EXHIBIT B PROMISSORY NOTE U.S. $800,000.00 Palm Beach County, Florida flNSERT], 20(}9 For value received, NSG Properties, Inc., a Florida corfKlration (the "Borrower") promises to pay to the order of [INSERT]. a [INSERT} (the "Lender"). its successors or assigns, EIGHT HUNDRED THOUSAND AND 00/100 U.S. DOLLARS (~OO,OOO.OO) (the "PrincipaJ"), pillS interest (the "'mterest") on the Principal from time to time remaining unpaid. So long as no default has occ1l1Ted in this Promissory Note (the "Note''). lnterest shall be payable as fo~lows: 1.) Zero percent (0%) per annum only for the time period beginning on [INSERT DATE LENDER FUNDS LOAN (the "No~ Date")J and ending on (INSERT dale that is ninety (90) calendar days after tbe Note Date (the "Rate CODlDJeDcement Date")] 2,) Wall Street Journal Prime Rate (or a comparable Prime Ra1e selected by Lender if same is not readily available and recalculated by Lender on a monthly basis) plus fOlll' percent (4%) per annum or seven percent (1%) per annum. which ever is greater, for the time period beginning on the Rate Commencement Date and ending on [INSERT] (tbe foDowiDg ninety (94)) ealeudar day period); and 3.) Prime Rate plus six percent (6%) per annum or eight percent (~%) per annum, . which ever is greater; for the time period beginning on [INSERT), 2009 and ending on [INSERT], 2014 (the remaiDing four and one half(4 ~) year calendar day period) (the "Applicable Interest Rate}. Upon default in this Note, Interest shall be payable at the lesser of Eighteen percent (18%) per annum ()I' the per annum rate of the highest rate permitted by applicable law in effect from time to time (the "Default Rate")_ In accordance with Section 55.m( I), Florida Statutes, Borrower hereby expressly further agrees that the Default Rate shan be applicable to interest accruing on any judgment entered with respect to tile indebtedness evidenced hereby or by any of the other Loan Documen1S (as such term is defmed in the Mortgage (as hereinafter defined)). Interest shall be calculated on the basis of the actual number of days elapsed divided by three hundred sixty (360). It is the intent of the parties hereto that in no event shall the Amount of interest due or payment in the nature of interest payable hereunder exceed the mllXirnum rate of interest allowed by applicable law, as amended from time to time, and in the event any such payment is paid by the Borrower or received by the Lender, then such excess sum shall be credite.d as a payment of Principal, unless the Borrower shall notify the Lender. in writing. that the Borrower elects to have such excess sum retuJlled to it forthwith. The Lender may. in detennining the maximum rate of interest allowed under applicable law, as amended from time to time, take advantage of: (i) the rate of interest pennitt.ed by Florida Statutes, Chapter 665 (Florida Savings Association and Savings Bank Act), by reason of both Section 687.12 Florida Statutes (''lnterest rates; parity among licensed lenders or creditors") and 12 United States Code, Sections 8S aod 86. and (ii) any other law, rule. IX regulation in effect from time to time, available to Lender which exempts Lender from any limit upon 1he rate of interest it may charge or grants to Lender the right to charge a higher rate of interest than tbat allowed by Florida Statutes, Chapter 687. ~ ~ Jan 08 2009 3:08PM NASON YEAGER GERSON WHITE 5614710894 p. 14 EXHIBIT B Borrower shall pay Principallllld Interest payments COJDIDeI1eiDg on the first day of the first montll followiog the Rate Commencement Date as follows: [CLlEN'l'TO PROvmE). On (INSERT], 2014 (the "Maturity Daten), the entire unpaid Principal and any accumulated unpakl Interest thereon shall be due and payable. All payments hereunder shall be made in lawful money of the United States of America. So long as no default has occurred in this Note. all payments hereunder shall first. be /l.1lPlied to In1erest, then to Principal and the remainder to "Lender's Costs" (lIS hereiaafterdcfined). Upon default in this Note, all payments hereunder shall first be applied to Lender's Costs, then to Interest and the remainder to Principal. This Note may be prepaid in pm or in whole without penalty. Arry prepayment shall be accompanied by an amount equal to the Interest accrued thereon to the date of receipt of such prepayment in collected funds. Prepayments shall be applied in the inverse order ofPrilwipal payments required by this Note. All payments hereunder shall be made at Lender's offices c/o Roschman Enterprises, Attn: Brian W. Smith, 6300 NE Is! Ave, Suite 300, Fort Lauderdale, FL 33334, or such other place as Lender may from time to time designate in writing. This Note shall be in default if any payment of Prindpal, Interest, or other sum due Lender hereunder, or under th~ Mortgage and Security Agreement (the "Mortgage') dated as of the date of this Note, from Borrower to Lender, or otherwise, is not paid within ten (10) calendar days after it is due. or if any Event of Default, as 6Uch renn is defined in the Mc:rrtgag~ occurs or if any obligation: of Borrower under the Mortgage or otherwise is not fully perfonned, prior to tile expiration of the applicable grace period, if any. Upon any uncured defimlt in this Note, the Lender, at its option. may declare tbe entire unpaid Principal balance of this Note, together with accroed Interest, to he immediately due and payable without notice or demand. In addition to payments ofInterest and Principal, if there is a default in this NCJtc the Lender shall be entitled to- recover nom the Borrower all of the Lender's costs of collection, iDchtding the Lender's reasonable attorneys' fees (whether for services incurred in collection, litigatioll, ban!croptcy proceedings. appeals or otherwise), and aU other costs in.Cll~ in connection therewith (collectively the "Lender's Costs"). A late charge of five percent (50/a) ohny payment required hereunder shall be imppscd 011 eacb and every payment not received by the Lender within five (5) calendar days after it is due. The late charge is not a penalty, but liquidated damages to defray administrative and releted eJqJeDses due to such late payment. The late charge shall be immediately due and payahie and shall be paid by the Borrower to the Lender without notice or demand. This provision for a late charge is not and shall not be deemed a . grace period, and Lender has no obligation to accept a late payment Further, the acceptance of a late payment shcll not constitute a waiver of any default then existing or tbesufter arising in this Note. The Borrower and any endorsers, sureties, guarantors, and all others who are, or may become, liable for the payment hereof severalty: (a) waive presenb'nent for payment. demand, notice of demand, notice of non-payment or dishonor, protest and notice of protest: of tbrs Note, and. all other notices in connection with the delivery, ~ptaDce, perfonnance, default, or cnforc:etnent of the payment of this Note. (b) waive any exemption of disposable earnings from. attachment or garnishment nndCl' Florida Statutes Section 222.11, (c) consent to all extensions of time, renewal!i. postponements of time of payment of this Note or other modifrcations hereof from time to time prior to or after the Maturity Date hereof, whether by acceleration or in due course, without notice, consent or consideration to any of the foregoing, {d} agree to any release of any of the security for the indebtedness evidenced by this Note or the addition or release of any party or person primarily or secondarily liable hereon., (e) agree that the Lender shall not be required first to institute any suit, or to exhaust its remedies against the llJ1dersigned or any other person or party to become liable hereunder or against the security in order to enforce the fy Jan 08 2009 3:08PM NASON YEAGER GERSON WHITF ~614710894 EXHIBIT 8 payment of this Note. and (f) agree that, notwithstanding the occurrence of any of the foregoing (except by the express written release by Lender of any such person), the undersigned shall be and remain, jointly and severally, directly and primarily, liable for all SIDDS due under this Note. The Borrower and any endorsers, sureties, guarantors, and all others wtw are, or who may become liable for the payment hereof,. severally expressly grant to the Lender a continuing fm;t lien security interest in and authorize and empower. the Lender, at its sole discretion, at any time after the occurrence of a default hereunder to appropriate ond, in such order as Lender may elect, apply to the payment hereof or to the payment of any and all indebtedness, liabilities and obligations of such parties to the Lender or any of Lender's affiliates, whether now existing or hereafter created or arising or now owned or howsoever after acquired by Lender or any of Lender'S affiliates (whether such indebtedness, liabilities and obligations are or will be joint or several, direct or indirect, absolute or contingent, liquidated or unliquidated, matIJred or unmatured, including. but not limited to, any letter of credit issued by Lender for the account of any such parties), ony and all money, general or specific deposits, or coUateral of any such parties now or bereafter i.n the possession of the Lender. Borrower, and any endorsers, sureties, guarantors and all others who are, or who may become liable for the payment hereof, severally. irrevocably and unconditionally (a) agree that any suit, action or other legal proceeding arising out of or relating to this Note may be brought, at the option of the Lender, in a court of recDrd ofthe State of Florida in Palm Beach County, in the Vnited Slates District Cowt for the Southern District of Florida or in any other court of competent jurisdiction; (b) consern: t{) the jurisdiction of each such court in any such snit, action or proceeding; and (c) waive any objection which it or they may have to the Ja.ying of venue of any such ~uit, action or proceeding in any of such courts. The term Lender as used herein stall mean any holder. of this Note. Time. is of ~.he essence in this Note. If more than one person signs this Note, each is and shall be jointly an~ severally liable hereunder; and if B<mower is a general partnership, then an partners in Borrower (and if Borrower is a limited partnership then all general partners in Borrower) shall be and rema.in jointly and several1y liable hereunder, notwithstanding any voluntary or involuntary withdrawaJ or removal of such general partner from such partner.ship. This Note shan be construed. interpreted, enforced and governed by and in accordance with the laws of the State of Florida (excllJding the principles thereof governing conflicts of Jaw). and federal law. in the event federaJ law permits a higher rate of interest than Florida law. If any provision or portion of this Note is declll:red or found by a court of competent jurisdiction to be unenforceable or null and void. such provision or portion thereof shaH be deeme<l stricken IlJld severed from this Note, and the remaining provisions and portiDns 1hereofshaJl contillue in fuJl force and effect This Note may not be amended, extended, renewed or modified nor shall any waiver of any provision hereof be effective, except by an instrument in writing executed by an authorized officer of the Lender. Any waiver of any provisioll hereof shall be effective only in the specific instanc::e and for the specific pUrp<:lse for which given. LENDER AND BORROWER HEREBY KNOWINGLY, IRREVOCABLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT EITHER MAY HA VB TO A TRIAL BY JURY IN RESPECT OF ANY ACfION, PROCEEDlNG OR COUNTERCLAIM BASED ON TillS NOTE, OR ARISING OUT OF, UNDER. OR IN CONNECTION WITH THIS NOTE,THEMORTGAGE OR ANY OTIIER DOCUMENT EXECUTED IN CONNECfION WITH lHIS NOTE; OR ANY COURSE OF CONDUCT,. COURSE OF DEALrnG. STATEMENTS (WHETI{ER VERBAL OR WRITTEN) OR ACTIONS OF ANY PAR TV HERETO OR TO TIlE MORTGAGE OR TO A~ry OTIIER DOCUMENT EXECUTED IN CONNECTION WITII TIDS NOTE. TIllS PROVISION IS A MATERIAL INDUCEMENT FOR LENDER AND BORROWER ENTERING INTO THE SUBJECT LOAN TRANSACTION. ,# ~ Jan 08 200S 3:0SPM NASON YEAGER GERSON WHITE 56147108S4 EXH IBIT B [EXECUTJONS APPEAIl ON FOllOWlNO PAGE] 1:'W-i'LO\OS46G'.OOJlPromiSSOiYflotc_Rev _'$ .doc ......-:.. fI- ~. p.16 J~n 08 2009 3:09PM NASON YEAGER GERSON WHITE 5614710894 EXHIBIT B THE PROPER FLORIDA DOCUMENTARY STAMP TAX HAS BEEN PAID ON THlS NOTE AND EVIDENCE OF SUCH PAYMENT APPEARS ON TIm MORTGAGE SECURING THIS NOTE. Print NSG Properties, Inc., a Florida corporation By: Print Norman 8. Goddard, President (SEAL) ACKNOWLEDGMENT STATE OF COUNTY OF The foregoing ~ent was sworn to, subscribed, and. acknowledged. before me th.is _ day of , 2009, by Norman S. Goddard, as President ofNSG Properties. Inc., a Florioa corporation, on bebalf oftbe ~Olporation. He is personally known to me or presented a driver's license as identification and did not 1ake an oalh. Notary Stamp/Seal: Notary Signature: Notary Print: Notary Public, State of Commission No.: My Commission Expires: ( # y Jan 08 2009 3:10PM NASON YEAGER GERSON WHITE 5614710894 p. 18 EXHIBIT C Preoared B'Y. :&:cord and Return to: Stearns Weaver Miller Woissw Alhadeff & Sitlecson, P.A AJtn: Peter L. Desiderio, Esq. New 'River Center. Suite 2100 200 Easl Las Olas Boulevard Fort Lauderdale. Florida 33301 FLORIDA DOCUMENTARY STAMP TAXES IN THE AMOUNT OF $2.800.0t> AND INTANGIBLE TAXES IN THE J\lI.i:OUNT OF SI.600.00 ARE BEING PAID UPON RECORDATION OF THIS INSTRUMENT. SUCH AMOUNTS ARE BASED UPON THE AMOUNT OF $SOO,Coo.DO. BEING TIm MAXIMUM TAXABLE AMOUNT OF THE INDEBTEDNESS SECURED HEREBY. MORTGAGE AND SJ:CURlTY AGREEMENT TInS MORTGAGE AND SECURITY AGREEMENT (the "Mortgage"). made as of this _ day of . 2009, between NSG Properties. Inc., a Florida corporation. as mortgagor and debt<lr, (the "Mortgagor''). wbose address is (INSERT). and [lNSERT). a fINSERTJ (the "Mortgagee''), whose address is do Roschman Enterprises. ~ttn: Brian W. Smith, 6300 NE 151 Ave, Suite 300. Fort Lauderdale, FL 33334. W!!]nt~s!IB: For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and to secu~ the payment of1he indebtedness evidenced by that certain promissol)' Note (the "Note") in the principal sum of Eight Hundred ThoDsand and 00/100 U.S. Dollars (S8QO,OOO.OO) of even date herewith. made by Mortgagor in favor- of Mortgagee, t~her with interest thereon, and to secure all other indebtedness, liabilities and obligati()llS ofMrogagor to Mortgagee inchJding, without limitation, all future advances made under this M<lrtgage and other sums of money as hereinafter provided. (collectively the "Loan Obligations" which term shall include, without limitation, the indebtedness evidenced by the Note), the Mortgager does by these presents grant, bargain. sell, alien, remise, release, give, transfer, assign, mortgage, pledge, warrant, convey and conIum UIlto Mortgagee aJ I estate, right, title and interest of Mortgagor in and to that certain real property (the "Land") located in Pabn Beach County, Florida, more particularly described on Exhibit "A>> attached hereto and ma.de a pan hereof, together with all rights, privileges, tenements, hereditaments, rights-of-way, easements, appendages, projections, appurtenances. water rights and strips and gores of land n.ow or hereafter ill any way belonging, adjoining, crossing or pertaining to the Land; and .-:. Together with all of the following property of Mortgagor whether now owned or existing, or hereafter acquired or arising. whether located in, on, pertaining to, used or intended to be used in connection with or resulting or aeat.ed from the ownersl1ip, development, lDanagernent. or operation of the Land: (a) all buildings, structures, and improvements (collectively, the "Improvements"), including all additioDS thereto and replacements and extensions thereot now constructed or hereafter to be constructed under, on, or above the Land, (b) all property and equipment now owned or hereafter acquired by Mortgagor and now or hereafter located under, on, or above the Land, whether or not pennanen11y affixed, which, to the fullest extent permitted by applicable law in =:ffect from time to time j ~. /~ ~ Jan 08 2009 3: 10PM NASON YEAGER GERSON WHITE 5614710894 EXHIBIT C shall he deemed fixtures and a part of the Land (collectively, the "Fixtures"), ee) any and all leases, licenses, concessions, or grants of other possessory interests, together with the seeurity therefor, now cr hereafter in force, oral or written., covering or affecting the Land or my part thereof (collectively, the "Leases") (provided, however, that Mortgagee assumes no obligations thereunder), (d) all of the rents, income, profits and other benefits now or bereafter arising from the Land or any of tile "Mortgaged Property" (as said term is hereinafter defmed) and the use and enjoyment thereof (collectively, the "Rents"'), (e) all accounts, accounts receivable, contract rights. chattel paper, iostrumenls and docwnents; any other obligations or indebtedness owed to Mortgagor from whatever source arising; and all of the right., title and interest ofMort~OT in and with respect to the goods, services, or other property that gave rise to or iliat s~ure any of tbe foregoing. (f) all goods including, without limitation, all machinery, equipment, furnitwe, furnishings, and building supplies and materials of every kind and description, and aJ] warranties and guaranties for any of the foregoing, (g) all inventory, merchandise, raw materials, pflrt.oJ, supplies, work-in-process and finished products intended for sale, of every kind and description, in the custody or possession, actual or constructive, of Mortgagor, (h) all general intangibles of every nature whatsoever including. without limitation, aU tax refund claims and agreements with uLHity comparnes, together with any deposits, prepaid fees and charges paid I:hereoll, (i) all judgments, awards of damages and settlements from any condemnation or eminent domain proceedinga regarding all or any part of the Mqrtgaged Property, G) all inSlJrance policies required by this Mortgage, the unearned premiums therefor and all loss proceeds thereof, (k) all joogments, awards, settlements, and insurance proceeds [or ailY damage to any of the Mortgaged Property, (I) all awards and refunds hereafter made with respect to /toy real estate and property taxes, utility rates and charges and all other governmental- and non-govenunental charges that may be assessed, levied or imposed upon the Mortgaged l'roI>erty, (m) all rights of Mortgagor as <<developer," "declamnf' or "sponsor" under any declaration or other document encumbering the Land or any portion thereof, (11) all rights to water 8JIcJ. sewer connections and transferable development rights and transportation, school, water and road impact fee credits and (0) all other personal propi:l1y including. without limitation, management contracts, construction contracls, se.rvice contracts, contracts for purchase and sale, equipmell1 leases, monies. in escrow accounts, reservation agreements, prepaid expenses, deposits and down payments with respect to the sale or rental of any of the Mo rtgaged Property. The term "Mortgaged Property" includes the Land, the Improvements and any and. all of the foregoing described property, and all proceeds, products, replacements, improvements, betterments, extensions, additions, substitutions, renewals, accessories, and appurtenances thereto and theroof. TO HAVE AND TO HOLD the Mortgaged Property unto Mortgagee, its successors and assigns forever. The conditions of this Mortgage are sllch that if Mortgagor shall in strict accordance with the tenns thereof pay unto Mortgagee the Loan Obligations and perform, c.omply with, observe) discharge and abide by each and every of the stipulations, agreements, conditions and covenants contained and set forth in this Mortgage and the Note, then this Mortgage and the estates, interests lIlld rights hereby created shall be null and void, but ~erwise shall remain in full forl;:e and effect. AND, Mortgagor does bereby represent and warrant to Mortgagee that: (a) Mortgagor is indefeasibly seized of and has and will have good !ll1d marketable fee simple title to the Land and Improvements and has and will have good, absolute and marketable title to all other property comprising the Mortgaged Property; (b) this is a first mortgage on the Mortgaged Property and aoy and all of the Mortgaged Property is free and clear of any and all mortgages, liens, encumbrances, claims and security interests of any kind, whether or not of record. including, without limitation, taxes and assessments, except those matters described in ExIIibit "B" attached nereto and made a part hereof (collectively the "Permitted Tide Exceptions"); (c) no consent of any third party is required for the loan evidenced by Ihe ~ ./II)? Jan 08 2009 3:10PM NASON YEAGER GERSON WHITE 5614710894 p.20 , EXHIBIT C Note (the "Loan"}, the execution and delivery of 8l1j' documents required by Mortgagee: in connection with the LoBI! (collectively the "Loan Documents"). or to any of the transactions contemplated under the Loan Documents.; (d) Mortgagor has full pDWel' and lawful authority to convey, transfer, llnd mortgage the Mortgaged Property unto Mortgagee; (e) Mortgagor will preserve its title to tho Mortgaged Property and wiJJ forever warrant and defend the same to Mortgagee and wHl foreveJ' warrant and defend the validity and priority of the first lien of this Mortga8e against the claims of all persons and parties whomsoever, (f) all information, including financial statements. certificates aDd otherwise, given and to be give:n to Mortgagee with respect to Mortgagor in colUlectiOO with the Loan .and the Mortgaged Property are 1JUe, accurate and correct in all material respects and complete; (g) there are no judgments outstanding against Mortgagor or the Mortgaged Property and there is no action. suit, proceeding or investigation now pending or threatened against:, involving or affecting Mortgagor or the Mortgaged Property; (h) all existing leases with respect to the Mortgaged Property. if any, are in full force and effect, and there are no defiwl1S thereunder or any defenses or offsets thereto on the part of any lenllfrt; (i) no event has occurred and is continuing which, with notice or the lapse of time, or both, would constitute a defaul1 under any provision of this Mortgage. The Mortgagor acknowledges that Mortgagee bas relied upon the Mortgagor's representations, has made no independent investiga1ion of tlle truth thereof, is not charged with any knowledge contrary thereto that may be received by an examination of the poblic records in Tallahassee, Florida, and tb.e county wherein tfte LaOO i~ located, .Of' that. may have been received by any officer, directDr, agent;, employee or shareholder of MOrtgagee.... . . ~ AND, the Mortgagor does hereby covenant and agree that: .. (a) Mortgagor shall promptly pay, as and when. doo and payable, all of the Loan Obligations. (b) Mortgagor shall punctJlaJly perform. comply with and abide by; or shall cause to be punctually performed, complied with and abided by all of the stipulations, agreements. dOilditions and co....enants contained and set forth in this Mortgage and in any other Loan Document. (<:) Mortgagor shall pay all obligations. encumbrances, taxes, assessments, levies or liens now or hereafter levied or imposed upon or against the Mortgaged Property and shall deliver to Mortgagee, on or before December 31 st of each year, tax receipts evidenc ing the payment of all ad valorem taxes upon the Mortgaged Property for the then current calendar- year, and shall deliver to Mortgagee receipts evidencing the payment of all other obligations, encumbrances, assessments. levies or liens withjn thirty (30) days after salM become due and payable or before same shall become delinquent, whichever is sooner. If any of the furegoing charges or any part thereof are not paid as aforesaid, after written notice and opportunity to cure as provided below. the Mortgagee may at any time pay same with accruecl interest and charges, if any, without wai...iIlg or a.i'fectiog Mortgagee's option to foreclose tJlis Mortgage or to exercise any other right or remedy of Mortgagee: hereundc:r or available at law or in equity, and every such payment by Mortgappe shall bear interest from the date hes-eof at the highest rate permitted by applicable law in effect from time to time, and aIllluch payments with mterest th.eJeon shall be secured by 1he: lien of this Mortgage. (d) Mortgagor shall during the term of this Mortgage oblain, maintain llnd keep in full force and effect A ll-Risks Hazard Insurance with respect to the Mortgaged Property, which insurance shall reflect C<lverage in such amounts as Mortgagee may reasonably require, but in no event less than 100% of the full replacement cost of all Improvements and Fixtures on the Mortgaged Property, and which insurance shall include, without limitation. a mortgage clause naming the Mortgagee as mortgagee, a replacement cost endorsement, a stifll1Btedvaluelagreed amount endorsement, flood insurance and sllch other coverages as Mortgagee may request. Such policy shall provide that any and all loss payments thereunder be payable to Mortgagee alone and not jointly with Mortgagor. 10 addition, comequential and f "~ ~ J<'ln 08 2009 3: 11PM NASON YEAGER GERSON WHITE 5614710894 EXHIBIT C resulti-ng losses from an iDswOO peril shall also be covered. Mortgagor shall aiso maintain General Comprehensive Public Liability In5lJI'llllce against claims for bodily injury. death and property damage, occunillg in, on. or about the Mortgaged Property, in such amounts as may be reasonably required by Mortgagee. All policies of insura.nce required hereunder shall be written by carriers approved by Mortgagee, shall provide that Mortgagee receive thirty (30) days pri or written notice from the insurer before a cancellation, modification. mat~al change or non-renewal of the policy becomes effective, and shall be written with a deductible provision not to exceed $10,000 and for such amounts as are sufficient to preven1lhe Mortgagor from becaming a co-insurer thereunder. At all times during the term of this Mortgage, Mortgagor shall deliver to Mortgagee the original (or a certified copy) of all policies of insurance required hereunder. together witfI receipts that the premiums therefor have been paid. Mortgagee, if it reasonably detennines same is necessary, after written notice and opportunity to cure as provided below, may place and pay for any and all insurance as aformaid, or any part thereof, wrthout losing, waiving, or affecting Mortgagee's right to foreclose this Mortgage or to exercise any other remedy or right of Mortgagee hereunder, and every such payment shall bear interest from the date thereof until .paid at the highest rate pennitted by applicable law in effect from time to time, and all such payments with interest thereon, as aforesaid, shan be secured by the lien of this Mortgage. If all or any part of the Mortgage<! Property shall be destroyed or damaged by a casualty, Mortgagor shall give written notice thereof to Mortgagee and the appropriate insurer within forty-eight (4S) hours. of StIch event, and Mortgagee is authorized and empowered (but not ob~gated or required) to make proof of loss and to settle, adjust or compromise any claims for loss, damage Or destructioa under any policies of insurance. All proceeds of insurance shall be paid tel Mortgagee and shall be applied :fir:st, to fue payment of aU costs and expenses (including, without limitation, reasonable attorneys' fees and expenses) incurred by Mortgagee in obtaining such proceeds. and second. at the (Jption of Mortgagee, which shall be in Mortgagee's sole md absolute discretion, either (i) to be held by Mortgagee for the payment of the Loan Obligations as they become due, or {ii} to the restoration, repair, or replacement of the Mortgaged P~pertY; If Mortgagee elects to apply the insurance proceeds to the restoration, repair or replacement of c- the Mortgaged Property, such proceeds shall be disbursed to Mortgagor as work progresses pursuant to a construction and disbursing loan agreement in form and content satisfactory to Mortgagee in its sole discretion. The election by Mortgagee to apply the insurance proc~e<is to the r~toration. repair or replacement of the Mortgaged Property shall Dot affect the lien of this Mortgage or affect or reduce tile Loan Obligations. If all or any part of the Mortgaged Property shall be dama.ged or destroyed. by a casualty not covered by insurance, or, if so covered, the insurer fails or refuses to pay the claim within ninety (90) days. following the filing thereof, Mortgagor sOOIl immediately. give written notice thereof to Mortgagee, and Mortgagor shall promptly and diligently. at its sole cost and expense, restore, rebuild and repair the Mortgaged Property to its condition prior to such casualty. During any period of restoration and repair, Mortgagor shall continue 10 duly and promptly pay, perform, observe and comply with all of the Loan Obligations and all of the stipulations, agreements, conditions and covenants contained and set forth in this Mortgage. (e) Mortgagor shall immediately notify Mortgagee upon obtaining any knowledge of the institution of any proceeding for the condemnation of the Mortgaged Property or any part thereof. If all or any !>art of the Mortgaged Property shall be damaged or taken through condeQ]Jlation (which tenn when used in this Mortgage shall include any damage or taking by any governmental authority and any transfer by private sale in lieu thereof, either temporarily or permanently), aU of the Loan Obligations shall at the option of Mortgagee become immediately due IInd payable. The Mortgagee shall be entitled to all compemation awards and other payments or relief therefor and is hereby authorized, at its option, to commence, appear in and prosecute, in its own or Mortgagor's DlD1'le, any action OT proceeding relating to any condemnation, and to settle or compromise any claim in connection therewith. All such compensation, awards, damages, claims, rights of action and proceeds and the right 1herfito are hereby assigned by Mortgagor to Mortgagee. who, after deducting therefrom all of its reasonable expenses (including, without limitation, reasonable attorneys' fees and .expenseS) may release any monies so ;Ie ~ Jan 08 2009 3:12PM NASON YEAGER GERSON WHITE 5614710894 p.22 EXHIBIT C"--' received by it without affecting the lien of this Mortgage or may apply the same. in such manner as Mortgagee shall detennine, to the unpaid Loan Obligations, md to prepaym-ent charges, if any. and MY balance of sucb monics then remaining after all Loan Obligations have been paid in full shall be paid to MortgagoI. The Mortgagor agrees to execute such further asslgnmcn13 of any compensation, awards. damages, claims, righbi of action and proceeds as Mortga~ may require. (f) InteDtionally deleted. (g) Mortgagor shall pennit Mortgagee md its agents to inspect the Mortgaged Property at any time during nonnal business hOllrs and at all other reasonable 'times. (h) After an EvenC of Default, upon demand by Matgagee, Mortgagor shall pay to Mortgagee on the payment date of installments of interest as provided in the Note, an installment of the yearly taxes and assessments with respect to the Mortgaged Property and an msta1.bnent of the msunlnce premiums for such insurance as is required hereunder, as estimstcd by Mortgagee, to accumulate the sum required to pay such taxes, assessments and insurance premiunn;. as applicable, thirty (30) days prior to the due date thereof. Amounts held lJerelllld<< shall not be, nor be deemed to be, trust funds., but may be commingled with the general funds of Mortgagee and no inlerest shall be payable wi1h respect thereto lUlless required by applieable law. Mortgagor shall pay to Mortgagee upon demand such additional money as is necessaJ)' to make up any deficiencies in the amOUnts necessary to enable Mortgagee to pay such tax.es. assessments and inswance premiums wheu due. Upon the occurrence of an Event of .Default, Mortgagee may apply any amount under this Section remaining to Mortgagor's credit to the reduction of the Loan Obligations, at such times and in such manner lIS Mortgagee shall de-mrmine. (i) Mortgagor, within five (5) days after written request from Mortgagee, shall furnish a written statementcluly a.clcr)owJedged, setting forth the unpaid pr.incipal bahplce of the Note and of any and all other Loan Obligations'alJcHhe interest ~c thereon. which 'l'lritten.statement shall further state whether or not there are any off-sets or defenses with respect to the Note or such other Loan Obligations. (j) Mortgagor shan payor reimburse Mortgagee for all costs, charges. expen ses, and reasonable IIttomeys' fees paid or incurred by Mortgagee in any action, proceeding or dispute of any kind in which Morl~ee is i. party because of the fa.tlure of Mortgagor to promptly perfonn, comply with and abide by any and all oftbe covenants. conditions and stipulations set forth in this Mortgage, ill the Note, or any other Loan Doct1D1ent, including, but 1101 limired to, the fureclosure or other enforcement of this Mortgage, aoy 'condemnation or eminent domain action involving the Mortgaged Property or any part thereof: any action to protect the sc<:urity hereof, or BIJY proceeding in probate, reorganization or bankruptcy. All such wnounts paid or incurred by Mortgagee togethCl" with interest thereon, at the highest rate permitted by applicable law in effect from time to time, ftom the date incurred by Mortgagcc shall be secured by this Mortgage and shall be due and payable by Mortgagor immediately, whether Of not there be notice or demand therefor. ~- (k) Intentionally deleted. L '1/ . . (1) Mortgagor at its sole expense, upon the request of Mortgagee, shall execute, acknowledge and deliver such further instruments as Mortgagee may require to carry out the purpose of this Mortgage and to subject to the lien hereof any property intended by the terms hereof to be covered hereby including. without limitation. financing statements and continuation statements; and Mortgagee, at the expense of Mortgagor, may cause such statements and instruments to be recorded and re.reoorded. filed and re-filed, in the name of Mortgagor, and Mortgagor hereby irrevocably appoints Mortgagee, which appombnent is coupled with. an interest, as its agent and aUomey-in.fact to do so. ~ Jan 08 2009 3: 12PM NASON YEAGER GERSON WHITE 5614710894 EXH\B\T C (m) Mortgagor shall at its own expense, and does hereby agree to, (i) protect, indemnify, defend and hold Mortgagee and its directors, officers, agents., employees and attorneys harmless from and against any and aU liability, loss, expense, or damagi: of any kind or nature including. without limitation, any liability or loss arising out of any matter, action, or inaction of Mortgagee in connection with the Note, this MOr'..gage, any oilier Loan Document or the MQrtgaged Propelty, unless caused by Mortgagee's gross negligence or intentional misconduct; and (ii) indemnifY Mortga.gee and hold Mortgagee harmless from aJld against any and all losses, liabilities. including strict liability, damages, injuries, expenses, including reasonable attorneys' fees, costs of my settlement or judgment and claims of any and every kind whatsoever paid, incurred OJ suffered by, or asserted against, Mortgagee by any person or my governmental authority for, wiU respect to, or as a direct or indirect result of, the presence 011 or under, OT the escape, seepage, leakage, spillage, discharge, emission, or release from the Mortgaged Property (or any part thereof) of any Hazardous Substance (including, without limitation, any losses, liabilities, including strict liability, damages, injuries, expenses, including reasonable attorneys' fees. costs of any settJe1nent or judgment or claims asserted or arising under the Comprehensive Environmental Response, Compensation and Liability Act, any so-<:a]].ed federal, state or local "Superfund" or "'Superlien" laws, statutes, ordinances, codes, rules, regulations, orders or decrees regulating. with respect to, or imposing liability, mcluding strict liability, in connection witlJ any Hazaroous Substance or standards of conduct concerning any Hazardous Sutstance), regardless of whether within the control of Mortgagee. For purposes of this Agreement the term "Hazardous Materials" shan mean (i) any toxic substance or hazardous waste, substance or related. material, or any pollutant or contaminant; (ii) radon gas, asbestos in any fonn which is or. could become friable, urea formaldehyde foam insulation, transformers or other equipment which contain dielectric fluid containing levels of poLychlorinated biphenyls in excess of federal, state or local safety guidelines, whichever are more stringent; (iii) any substanc~ gas material or chemical which is OF may be defined as or included in the definition of "hazardous substances", "toxic substances", "~dous materials", "haza:rdous wastes" or words of similar import under any federal, state or t~] statut~.law, code, or ordinance or under the reguLations adopted or guidelines promufgated pursuant thereto, including, but not limited to, tbe Comprehensive Environmental Response, Compensation and Lia.bility Act of 1980, as amended, 42 U.S.c. ~ 9061 et seq.; the Hazardous Materials Tnmsportation Act, as amended, 49 U.S.C. 9 180 I, el seq.; the Resource Conservation and Recovery Act, as amended, 42 U.S.C. 9 6901, et seq.; the Federal Water PoHution Control Act, as amended, 33 U .S.C. 9 1251, et seq,; and all relevant State environmental statutes; and (iv) any other chemical, material. gas, or substance, the exposure to or release ofwlUch is or IDay be prohibited, limited or regulated by any governmental or quasi-governmental errtity or authority that asserts or may assert jurisdiction over the Property or the operations or activity at the Property, or any chemical, material, gas or substance that does or may pose a hazard to the health ancl/or safety of the occupants of the Property or the owners and/or occupants of property adjacent to or surrounding the Property. These indemnifications shall survive the full payment and perfonnance of all of the Loan Obligations and all of the stipula1ions, agreements, conditions and covenants con~ined and set forth in this Mortga.ge. The foregoing indemnifications shall not apply to any matters which occurred after the date upon which Mortgagee1akes title to the Mortgaged Property. (0) If Mortgagor receives (i) any notice of ilie happening of all)' ~vent invo1ving the spillage, release, leakage, seepage, discharge or cJellllup of any Hazardous Substance on the Mortgaged Property or in connection with Mortgagor's opera1ions thereon or (ii) from any person or governmental authority (including, without limitation, the EP A) any complaint, order, citation or notice with regard to air emissions, water discharges, or any other environmental, health or safety matter (collectively and individually an "Environmental Complaint") affecting Mortgagor or the Mortgaged Property (or any part there<lt), then Mortgagor shall within twenty-foui (24) hours thereafter notify Mortgagee orally and in writing of such Environmental Complaint. Mortgagee shall have the right but not the obligation, and without any limitation of Mortgagee's other rights under this Mortgage, after written notice to Mortgagor y-,. Jan 08 2009 3:13PM NASON YEAGER GERSON WHITE 5614710894 p.24 EXHIBIT C or opportunity to cure as provided below, to enter onto the Mortgaged Pl'Operty or to take such other actions as it deems necessary or advisable to cleanup, remove. resolve or minimize the impact of, or olhecwise deal with, any Hazardous Substance or any Environmental Complaint following receipt of any notice from any person or govem:m.ental authority (including, without limitation,. the EPA) asserting the existmce of any Hazardous Substance or an Environmental Complaint pertaining to the Mortgaged Property or any part thereofwhicb. if true. could result in an order, suit or other acti~1B against Mortgag<lr or Mortgagee which, in the sole opinion of Mortgagee. coufd jeopardize Mortgagee's security under this Mortgage. All costs and expenses incurred by Mortgagee in the exereise of any such rights shan be secured by this Mortgage and shall be payable by Mortgagor upon demand. In the event Mortgagee reasonably believes an adverse environmental event has occum:d, Mortgagee shall also have the right to require Mortgagor to perfurm an environmental audit of the Mortgaged Property and, an environmental risk assessment of the Mortgaged Property including Hazanlous Substances waste management practices and Hazardous Substances waste disposal sites thl:ROn. An environmental audits and environmental risk assessments shalJ be at Mortgagor's sole cost and expense, shall be perfonned and prepared by an euvirownental consultant satismctory to Mortgagee, and shall otherwise be in fonn and substance satisfactory to Mortgagee. Should Mortgagor fail to provide such environmental 2l.udit or environmental risk assessment within thirty (30) days of the Mortgagee's written request, Mortgagee shall bave the right but not tile obligation to retain an environmental consultaDt to perform. and. pre~ same. All costs and expenses incurred by Mortgagee in the exercise ofsucb. riglrts shall be secured by this Mortgage and shall be payable by Mortgagor upon demand 01' charged to Mortgagor's loan balance at the discretion of Mortgagee. (o) Mortgagor shaD not sell, convey or 1ransfer or permit to be sold, conveyed or transferred llJJ}' interest in tho Mortgaged Property or any part thereof. A contJact to deed or agreement for deed, or an assignment. pledge, or enCtlmbrance of a beneficial interest in any land trust, ora lease for all orsubstantialtyaIl of the Mortgaged Property shall constitute a transfer prohibited by thepro.visions of this Section and shall be null and void. Notwithstauding the foregoing. dwing the period from the.date of . this Mortgage until July 30, 2010 Mortgagor may lease th~ Mortgaged Property on commercially reasonable terms only if (i) such lease can be taminated witllin tbirty (30) calendar days after written notice by the owner of the Mortgaged Property at no cost or expense wha1soever to the owner of the Mortgaged Property, (ii) no memorandum of lease or other evidence of sucb lease shall be recorded in the Public RflCords of Palm Beacb County. Florida. (Hi) Sllch lease shall not contain any option to purchase. right of first refu&lll. extension option or any similar rigbt, (iv) Mortgagor obtains the prior written consent of Mortgagee to such lease and all amendments and modifications theJeto, which consent shaJl not be unreasonably withheld, and (v) the tenant under such lease subordinates its lease. to this Mortgage pursuant tl} a subordination agreement executed by tenant in fonn and content reasonably acceptable to Mortgagee. Notwithstanding the foregoing, during the period after July 30,,2010 Mortgagor ma.y lease the Mortg3ged Property on commercially reasonable terms only if (i) no memorandum of lea...<oe or other evidence of such lease shall be recorded in the Public Records of Palm Beach County, Florida, (ii) such lease shall not contain any option to purchase, right of first refusal, extension option or any similar right, (m) Mortgagor obtains tbe prior written cxmsent of Mortgagee to such lease and all amendments and modifications thereto, which consent shall not be unreasonably withheid, and (iv) the tenant under such lease subordinates its Je.ase to this Mortgage pursuant to a subordination agreement executed by tenant in fann and C01ltent reasonably acceptable to Mortgagee. f~ (p) Mortgagor shall not create or permit to be created or to remain, any mortgage, pledge, mechanics' lien (unless fully bonded off within thirty (30) calendar days of its filing) 'Jf other lien, conditional s~1e or other title retention agreemmt, encumbrance, claim or charge on (whether prior or subordinate to the lien of this Mortgage) the Mortgaged Property or any iJICome therefrom. Any transaction prohibited under this Section sbaJ) be null and void, ~ ~ Jan 08 2009 3: 14PM NASON YEAGER GERSON WHITE 5614710894 EXHIBIT C (q) Mortgagor shall oat C<lmmit or pe.nnit any waste, impairment, or deterioration of the Mortgaged PropertY and shall at all times maintain the Mortgaged Property in a state of good repair; Mortgagor shall not in any way impair or weaken the security of this Mortgage. In the event that Mortgagor shall refuse, neglect or be unable to repair and maintain the Mortgaged Property, the Mortgagee may, at its option, after written notice to Mortgagor and opportunity to cure as provided below, make sucb repairs or cause the same to be made and advance monies in that regard AI! such amounts paid or incurred by Mortgagee together with interest thereon. at the highest rate authorized by applicable law in effect from time to time, from the date incurred by Mortgagee shall be secured by this Mortgage and shall be due and payable by Mortgagor immediate'y, whether or not there be notice or demand therefor. An "Event of Default", as used in this Mortgage, shall occur at any timo or from time to time: (a) if any Loan Obligation or any installment tbereof is not paid within ten (10) calendar days after same is due and payable; (b) if any covenant, conrlition, agreement, or stipulation contained in this Mort:gage (other than ODe requiring the payment of money or otherwise specifically provided for hereinafter) is not dllly and promptly performed, or if any negative covenant contained in this Mortgage is violated., and such non-perfonnance or violation is not curable, or if curable cootintles for a period of thirty (30) calendar days after written notice .hereof from Mortgagee to Mortgagor.. provided that if default is not capable of being cured within thirty (3D) days, Mortgagor shall have an additional sixty (60) days to cure; (c) if any representation or warranty made in this Mortgag~, or in any other L03l1 Document is at any time false, misleading, or breacbed; (d) if a final judgment for the payment of money in excess ofS50,OOO.OO is rendered against Mortgagor and the same remains unsatisfied except for sucb period of time an execution on the judgment is effectively stayed or fully bonded off; (e) if Mortgagor is voluntarily adjudicated bankrupt or insolvent., seeks or consents to the appointment of a receiver or trustee for itself m for all OT' any part of its property, files a petition seeking relief, including reorganization, arrangement 'or sirnil~.re1ief, under the present Bankruptcy COOe or other similar present or futuIe applicable laws of the..United,.States or any state. or any otbee-competent jurisdiction, makes a general assignment for the benefit of creditors or admits in writing its inability to pay its debts as they mature; (f) if a receiver or trustee is appointed for Mortgagor or for all or any part of its property without its COO.'lent and such appoinbnent is not vacated within sixty (60) days, or if a petition is filed against Morlgagor seeking reHef, including reorganization., arrangement or similar relief, under the present Bankruptcy Code or other similar present or future applicable laws nfthe United States or any state or other competent jurisdiction, and such petition is not dismissed within sixty (60) days after the filing thereof; (g) if Mortgagor v oluntarily or involuntarily dissolves OT liquidates; (h) if Mortgagor or any general partner of Mortgagor, if Mortgagor is a limited partnership, or any partner of Mortgagor, if Mortgagor is a general partnership, dies or is declared incompetent; (i) if any guarantor of any of the Loan Obligations dies or is declared incompetent; G) if the holder of any mortgage or othorlien on the Mortgaged Property jllniDrto the lien of this Mortgage (without hereby implying Mortgagee's consent to any 5u~h mortgage or other lien) institutes foreclosure or other proceedings for the enforcement of any of its remedies thereunder; (k) if a direct or indirect sale, conveyance, assignment or transfer of the Mortgag.ed Property, or any portion thereof or any interest therein or further encumbrance of the Mortgaged Property occurs, either hy operation of law or otherwise, or if a direct or indirect sale, conveyance, assignment or 1ransfer of the ~ortgagor (or any portion thereof or any interest therein), either by operation of raw or otherwise, or if a transfer of control of or a controlling interest in the Mortgagor occurs; (1) if Mortgagor fails to duly and promptly perfonn and discharge, or cause to be performed and discharged all of the obligations and undertakings of Mortgagor or its agents under any lease affecting the Mortgaged Property; (m) if Mortgagor violates or breaches any agreement, covenant, condition, restriction, easement or similar matter affecting title to the Land which is not cured within thirty (30) days after written notice from Mortgagee of such breach; (n) if there is a violation or breach of any tenn or covenant in this Mortgage, Note or any otheJ Loan Document evidencing, guarantying. securing or otherwise relating to the Loan Obligations which is not cured within the time periods set forth. in subsection (b) above; (0) if Mortgagor r~ Jan 08 2009 3:15PM NASON YEAGER GERSON WHITE 5614710894 p.26 EXH"IBIT C fails to keep the Mortgaged Property insured as set forth above and such failure continues after the notice 8JId cure periods set forth in subsection (b) above; (p) if any of the Mortgaged Property is used in a manner or for a purpose wbich threatens oonfiscation by a legal authority; or (q) if Mortgagor. pursuant to Florida Statutes 697.04(IXb) as amended from time to time, files for record a notice limiting the maximum. amount which may be secured by this Mortgage. lfan Event of Default shall ha.ve occurred, Mortgagee may, at its option. exercise any, some, or all of the following remedies, concurrently or consecutiyely: (a) Mortgagee may declare an oftbe unpaid Loan Obligations. together with all a~ed i1mnlst thereon, to be due and payable without notice or demand, and upon such declaration all such Loan Obligations shall immediately become due and payable as fuBy and to the same effect as if the date ofsuch.dcclaratiOll were the date originally specified for the full payment or maturity thereof; (b) Mortgagee may demand that Mortgagor surrender the actual possession of the Mortgaged Property and Mortgagee or its agents may enter BOd take possession thereof and may exclude Mortgagor and its agents wholly therefrom; if Mortgagor shall for any reason fail to surrender or deliver the Mortpged Property or any part thcn:of to Mortgagee. Mortgagee bUly obtain a judgment or order requiring that Mortgagor deliver immediate -possession to Mortgagee, to the entry of which judgment or decree Mortgagor bereby specifically consents; upon entering or taking pos~sion, Mortgagee may use, operate. manage and control the Mortgaged Property and conduct the business thereof and from rune 10 time may exercise aU of the rights and powers of Mortgagor in its name or otherwise with respect to same, all as Mortgagee from time to time may determin~ in its sole discretion; (c) Mortgagee may. with or without taking possession of the Mortgaged Property, as hereinabove provided, collect and receive all of the Rents therefrom, inchlding those past due as well as those accruing thereafter. and shall apply said monies so received first, to the payment of all costs and expenses (including. without limitation, reasonable attorncy's fees and expenses) incurred by Mortgagee and its agents while in possession and secmd;in such order as Mortgagee may elect,. to the payment of the Loan Obligations; (d) if any installment-ar;part of any Loan Obligation shall fail to be paid when due, Mortgagee shall be entitled m SU& for'and to recover judgment against the Mortgagor for the amoWlt so due and unpaid togeth.er with aJl costs and expenses (including. without limitation, reasonable attorneys' fees and expenses) incurred by Mortgagee in cormection with such proceedipg, together with interest thereon at the highest rate permitted by applicable Jaw in effect from time to time from the date incurred by Mortgagee, and aU sudl costs aDd expenses shall be secured by this Mortgage and shall be due and payable by Mortgagor immediately; if Mortgagor shan fail to pay upon Mortgagee's demand. after acceleration as hereinabove provided. all of the lDlpaid Loan Obligations, together with all accrued interest 1hi:reon, Mortgagee shall be entitled to sue for and to recover judgment against the Mortgagor for the entire amount SO due and unpaid together with all costs and expenses (including. without limitation. reasonable attorneys' fees and expenses) incum:d. by Mortgagee in connection with such proceeding, together with interest thereon at the mghest rate permitted by applicable law in effect from time to time frrnn. tbe date incurred by Mortgagee. and all such costs and expenses shall be secured by this Mortgage and shall be payable by Mortgagor immediately; Mortgagee's right under this Subsection (d) may be exercised by Mortgagee either before. lifter, or during the pendency of any proceedings for the enforcement of this Mortgage. including appellate proceedings; no recovCIy of any judgment as provided in this Subsection (dl and no attachment or levy of any-e,xecutiOl1 upon any of the Mortgaged Property shall in any way affect the lien of this Mortgage upoll the Mortgaged Property or any part thereof. or any lien, rights, powers, or remedies of Mortgagee hereunder, but such lien. rights. powers and remedies !hall continue unimpair~ as before; (e) Mortgagee may institute: proceedings for the partial Or complete foreclosure of this Mortgage and Mortgagee may. pursuant to any final judgment offoredosUlc, seU the Mortgaged Property as an entirety or in separate 1001 or parcels; (f) in case ora foreclosure sale of all or any part of the Mortgaged Property, the proceeds r:>f sale shall be applied as hereinafter set forth, and the Mortgagee shall be entitled 10 seek a deficiency judgment against the Mortgagor to enforce payment of any and all of1he Loan Obligations then remaining due and unpaid,. together with interest thereon at the hiJ!hest rate permitted by applicable law io effect from time to tim.=, and to recover a judgment against the /--~ Jan 08 2009 3: 16PM NASON YEAGER GERSON WHITE 5614710894 'EXHIBIT C Mortgagor therefor; (g) Mortgagee may apply to allY court of competent jurisdiction to have a receiver appointed to enter upon and take possession of the Mortgaged Property, collect the Rents therefrom and B?ply the same as the court may direct;, sucb receiver to have all of the risbtll and powers permitted under the laws of the State of Florida; the right of the appointment of such receiver shall be a matter of strict right without regard to the value or the occupancy of the Mortgaged Property or the solvency or insolvency of Mortgagor; the expenses, including receiver's fees, at1omeys' fees, costs and agent's coonmissioIl incurred pursuant to Ole powers herein contained, together with interest thereon, if any, at the highest rate permitted by applicable law in effect from time to time !lhaU be' secured hereby and shall be due and payable by Mortgagor immediately without notice or demand; notwithstanding the appointment of any receiver or other custodian, Mortgagee shall be entitled as pledgee to the possession and control of any cash or deposits at the time held by, payable, or deliverable under the terms of this Mortgage to Mortgagee, and Mortgagee shall have the right to offset the unpaid Loan Obligations against any such cash or deposits in such order as Mortgagee may elect; {h) Mortgagee may, with respect to the Mortgaged Property constituting personal property. exercise any or all of its rights and remedies under the Florida Uniform Commercial Code or other applicable law liS well as all other rights and remedies possessed by Mortgagee, all of which shall be cumulative; Mortgagee is hereby authorized and empowered to enter the Mortgaged Property or other ptace where such personal property may be located without legal process, and to take possession of same witbout notice or demand, which hereby are waived to the maximum extent permitted by the la.ws of tbe State of Florida; upon demand by Mortgagee, Mortgagor shaIJ make such personal property available to Mortgagee at a place reasonably convenient to Mortgagee, and Mortgagee mil}' sell at one or more public or private sales md for such price as Mortgagee may deem coromerciaUy reasonable, any and all of such personal property and any other security or property held by Mortgagee, Bnd Mortgagee may be tM purchaser of any or all of sarn,e; (i) Mortgagee may institute and maintain any suits and proceedings as Mortgagee may deem advisa.ble to. prevent any impairment of the Mortgaged Property and to preserve or protect its interest in the.Mortga~ Rroperty; OJ no right, power or remedy of Mortgagee as provided in the Note, tbis Mortgage and in any other Loan Document is intended to,be exclusive of any other right, power or remedy of Mortgagee. but each and every such right, power and remedy shall be cumulative and concurrent and in addition fa any other right, power OT remedy available to Mortgagee now or hereafter existing at law or ill equity and may be pursued separately, consecutively or together agamst Mortgagor or the Mortgaged Property or any part thereof at the sole discretioll of Mortgagee; the failllre of Mortgagee to exercise my such right, power or remedy shall in no event be construed as B waiver or release thereof; (k) no waiver of any Event of Default hereunder shali extend to or affect any subsequent or any other Event of Default then ex:isting. or impair any rights, powers or remedies consequent thereon, and no delay or omission of Mortgagee to exercise any light, power or remedy shall be construed to waive any such Event of Defalllt or to constitute acquiescence therein; (I) upon any sale made under or by virtue ahny of the furegoing provi$ions, Mortgagee may bid for and acquire the Mortgaged Property, or an)' part thereof, and in lieu of paying cash therefor may apply to the purchase price, any portion of or all of the unpaid Loan Obligations in such order as Mortgagee may elect; any such sale or sales shall operate to divest all of the estate, right, title, interest, claim and . demand whatsoever at law or in equity of Mortgagor and all persons, claiming by, through or lmder Mortgagor in and to the IlToperties and rights so sold, whether sold '0 MOJ1gagee or to others; (en) in the case-!>f any receivership, insolvency, bankruptcy, reorganization, ammge1J]eDt, adjustment, composition or other judicial proceedings affectfngthe Mortgagor or any of its property or creditors, the Mortgagee to the extent pennitted by law shall be entitled to file such proofs of claim and other doclIments as may be necessary or advisable in order to have its claim allowed in such proceedings for the entire unpaid Loan Obligations at the date of the institution of such proceedings, and for any additional amounts which may become due and payable after sucb date; (n) Mortgagor hereby waives and releases fur itself and anyone claiming through, by, or under it, to the maximum extent pennitted by the laws of the State of Florida, all benefit of any present or future taw exempting the Mortgaged Property, or any part of the proceeds arising from any sa.le thereof, from attachment, levy or sale on execution, or providing for any a.ppraisement, r~ Jan 08 2009 3:17PM NASON YEAGER GERSON WHITE 5614710894 p.28 EXHIBIT-.-C"~ valuation, stay of execution. exemption from civil process, redemption or extension of time for payment, and any right to nave tbe Mortgaged Property marshaled. In accordance with Section 55.03(1), Florida Statutes, Mortgagor hereby expressly further agrees t1ud the def8lllt rate sball be applicable to interest accruing on any judgment entered with -respect to the indebtedness evidenced or secured hereby or by aoy of the other Lou ~uments. . The proceeds of any sale of aU or BOY portion of 1I1e Mortgaged Property shall be applied by Mortgagee first:, to the payment of receiver's fees and expenses, if any, and to the payment of all c:osts and expenses (including, without limitation, reasonable Bttomeys' fees and expenses) mOUJTed by Mortgagee, togethez with interest thereon at the highest rate permitted by applicable law in effect from time to time from the date so incurred, in connection with any entl)', action or proceeding as hereinabove set forth, and second in such order as Mortgagee may elect, to the payment of the Loan Obligati(Jn~. Mortgagor shall be and remain liable to Mortgagee for any -di1Icrcl\ce between the net proceeds of sale and the amount of tbe Loan Obligations until all of the Lean Obligations shall have been paid in full. In addition to the original indebtedness secured llereby. this Mortgage shall secure any Loan of money from Mortgagee to Mortgagor made within twenty (20) yearo!! from .the €late. hereof. "01etotal amotmt of such loan or loans may decrease. or incmlSe from time to time, but the total unpaid aggregate balance secured by tms Mortgage shall not at any time exceed One Million Six Hundred ThoUA8!)d and 001100 U.S. Dollars ($1,600,000.00), plus interest th~ecm, and any disbun~ents I'Mde by Mortgagee for the payment of taxes. insuran<:e, or other liens on the Mortgaged Property, witb imerest on GUCh disbursements. Mortgagee has nO obligation, wbatsoever, to make any future advances. Any reference to ''Note" in this Mortgage shall be construed to reference any and all promiSSQry note(s) evidencing future advance(s) made puTSUllDt to this Section. . ~ ' ',' I Nothing con,tained herein, in the Noto, Qf in any. othe.f imtrmnent or tran5a~on-related.thereto. shall be construed or so operate as to require Mortgagor to pay interest in an amount or at a rate greater than the maximum aUowed by applicable law in effect from time to time, In detcnnining the maximum rate allowed. Mortgagee may take advantage of any state or federal law, rule or regulation in effect from time to time wbi ch may govem the mllXimum rate of interest which may be Charged. Should any interest or otherchargcs in the nature of interest paid by Mortgagor result in the computation Of earning of interest in excess of the maximum rate of interest anowed by applicable law in effect from time to time, then any and all such excess shall be and the same is hereby waived by the bo Idel" thereof, and all ~b excess shall be automatically credited against and in reduction of the principal balance of.the Note or the balance of the' other' Loan Obligations, as applicable, and any portion of said excess which exceeds the principal balance of the Note or the balance of StIch other Loan Obligations. as applicable, shall be paid by the bolder thereof to Mortgagor, it being the intent of the parties berejo that under no circumstances shall Mortgagor be required to pay interest in exce.'JS of the maximum rate pennitted by appli<:able law in effcet from time 10 time. The warrauties. representations, covenants and agreements set foI1h in this Mortgage slJaIl survive the execution and deliveJY hereof and shall continue in full force in effect until all of the Loan Obligations shall have been paid in full. Wberever provision is made herein for payment of attorneys' fees or expenses incurred by Mortgagee, said provision shall include, but not be limited to, attorneys' fees or expenses incurred in my and all judicial, bankruptcy, reorganization.. administrative, or o1her proceedings including appellate proceedings, whether such fees Dr expenses arise before proceedings are conunenced or after entry of a fmaJjudgment. /~~ Jan 08 2009 3: 17PM NASON YEAGER GERSON WHITE 5614710894 ;..> ~~ EX'HlBIT C Mortgagee is hereby subrogated to 1he claims and liens of aU p~e.s whose claims or liens are fully or partially discharged or paid with the proceeds of the indebtedness secured by this Mortgage Each notice, consent, request, report or other communication under this Mortgage Or any other loan document (each a ''Notice') which any party hereto ma.y desire 01 be required to give to the other sha.lt be deemed to be an adequate and sufficient notice if giVeIl in writing and service is made by either (i) registered or certified maH, postage prepaid, in which case notice shan be deemed to hllve been received three (3) business days following deposit in the U.S. mail; or (ii) nationally recognized overnight air courier, next day delivery, prepaid, in which case such notice shall be deemed 10 have been reGeived one (I) business day foJlowing delivery to such nationally recognized overni ght air cC1urier. All Notices shall be addre.sserl to Mortgagee and Mortgagor at their respective addresses given on 1he first page hereo[ AllY party may designate II change of address by written notice to the other party, received by such otller party at least ten (I 0) days before such change of address is to become effective. If Mortgagor shllll fail to duly payor perform any of the Loan Obligations or any of the covenatlts, conditions, agreements, or stipulations required by this Mortgage. then at lID)' time thereafter, after the expiration of any applicable grace period expressly s~ furth in tllis Mortgage, without DOtice to or demand upon Mortgagor and without waiving or releasing any riglrt. remedy, or power ofMO/:tgagee and without releasing any of the Loan Obligatio-ns or any of such coyenants, conditibns, agreements, Or stipulations or any EveDt of Defauj~ Mortgagee may payor perform any such Loan Obligations, covenallts, coll!iitions, agreements or stipulations for the account of and at the e:cpeose of Mo.rtgagor and shall have the right to enter and to authorize others to enter upon the Mortgaged PropertY for such pnTpQSe IUld to tlke all such action thereon and with respect to the Mortgaged Property as may be necessary or appropriate for such purpo~. AU payments made and all costs and expenses (including, withom Jirilitation, reasonable attorneys' fees and expenses) incurred by Mortgagee, together with interest thereon . at)he nighest rate. permitted by a.pplicable law in effect from time to time from the date incurred by Mortgagee shall be secured by this Mortgage and shaH be due and payable by Mortgagor immediately, whether or not there be notice, demand, an attempt to collect Same or suit pending. All of the terms of this Mortgage shall apply to and be binding upon, and inure to me benefit of, the heirs. devisees, personal representatives, sUccessors and assigns of Mortgagor and Mortgagee, respectively, and all personS claiming under or through them. If anyone or more of the provisions contained in this Mortgage is declared Of found by a court of competent jurisdiction to be invalid, illegal, or unenforceable, such provision or portion thereof shall be deemed stricken and severed and the remaining provisions hereof shall continue in full fcree and effect. If anyone or more ofthe Loan Obligations is declared or found by a court of competent jurisdiction to be invalid, illegal, or unenforceable, the vaJidity, legality and enforceability of the remaining Loan Obligations sbalt continue in full force in effect. No agreement unless in writing and signed by an authorized officer of Mortgagee ~d no course of dealing between the parties hereto shall be effective to change, M1.ive, terminate, modifY. discharge, or release in whole or in part any provision of tlJis Mortgage. No waiver of any rights or powers of Mortgagee or consent by it shall be valid unless iJl writing signed by an authorized officer of Mortgagee and then such waiver or consent shaH be effective only in the specific instance and for specific pUflJose f()r which given. This Mortgage constitutes a '.Security Agreement" within the meaning of and shall create a security interest under the Uniform Commercial Code as adopted by the State of Florida (the "UCC"), with respect to all Mortgaged Property which is covered by the Uniform Commercial Code. A carbon, photographic or otner reproduction of this Mortgage or of any financing statement shall be sufficient as 2. /$-' Jan 08 2009 3:17PM NASON YEAGER GERSON WHITE 5614710894 p.30 EXH'IBIT'.C rmancing statement This MDrtgage is also being recorded as a "flXtUre filing" as clefined under the DeC, including. without limitation, Sections 679.1021 (lXnn), and 679.5021 of the UCC and also covers goods that are or are to. become fortures. This Mortgage shall be construed. interpreted. enforced and governed by and in acoordance with the laws of the State ofFJorida. It is specifically agreed that time is of the essence as to. all matters pravided for in this Mortgage, and 111at no waiver of any Loan Obligation or provision contained in this Mortgage shall at any time thereafter be held to be a waiver of sucb Loan Obligation or provision. If more than one person executes this Mortgage, each is and shall be jointly and severally liable hereunder; and if Mortgagor is agemeral partnership, then all partners in Mortgagor (and if Mortgagor is a limited partnersbip then all general partners in Mortgagor) shall be jointly and severally liable hereunder, notwithstanding any contrary provision in the partnership laws of the S1Bte of Florida. MORTGAGEE AND MOR.TGAGOR HEREBY KNOWINGLY, IRREVOCABLY, . VOLUNTARILY AND INTENll0NALL Y W AWE ANY RIGID EI'IHER MAY HA VB TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, PROCEBDJNG OR COUNTERCLAIM BASED ON THIS MORTGAGE, OR ARISING OUT OF. UNDER OR IN CONNECTION WITH THIS MORTGAG~ THE NOTE OR ANY OTHER DOCUMENT BXECUTED IN CONNECTION HEREWITH OR THEREWl1lI, OR ANY COURSE OF CONDUCT. COURSE OF DEALING, STATEMENTS (WfJE.1HER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY HERETO OR 1'0 ANY OTHER DOCUMENT EXECUTED IN CONNBCfiON HEREWTIll TIllS PROVISION IS A MATERIAL INDUCEMENT FOR MORTGAGEE AND MORTGAGOR ENTERING lNTO THE SUBJECT TRANSACTION. IN WITNESS WHEREOF, Mortgagor has executed this instrument as of tbe day and Yea1 first above written. Signed. sealed and delivered in the presence of: Print: NSG PropertieR, Inc., a Florida co.rporatioo By: P:rint: Nonnan S. Goddmd, President (CORPORATE SEAL) --:" ACKNOWLEDGMENT STATBOF COUNlYOF } ) ff ~ Jan 08 2009 3: 18PM NASON YEAGER GERSON WHITE 5614710894 EXH,.BITC The foregoing instrument was sworn to, subscribed, and acknowledged before me this _ day of ,2009, by Norman S. Goddard.. as President ofNSG Properties, Inc., a Florida corporation, on beha1fofth~ corporation. H~ is personalIy known to me orpl"esented a driver's license as identification and did not take an oath. Notary Stamp/Seal: Notary Signature: Notary Print: Notary Public, State of Commission No.: ______ My Commission Expires: _ ____________ ~, Jan 08 2009 3:18PM NASON YEAGER GERSON WHITE 5614710894 p.32 EXHIBIT "A" L~ Descriotion of the Land EXHIBIT C ~ . . . -' '.. ---; .....- ..... ," . - )f-~ Jan 08 2008 3: 18PM NASON YEAGER GERSON WHITE 5614710884 EXHIBIT <<B" EXHIBIT C Permitted Title Exceotions ].) All real estate taxes not ye1 due and payable; 2.). Easements reserved iu Warranty Deed recorded March 23, 1971 in Official Records Book J 883, Page 1255 J of the Public Records of Pahn Beach County. Florida; J.) Easement in favor ofF)orida Public UtUities Company recorded October 21, 1976 in Official Records Book 2596. Page 1715, of the PUblic Records of Palm Beach County. Florida; and 4.) Right-or-Way of Gulfstream Boulevard and U.S. Highway No.1 as now laid out and in use. I;\W -P1..O\OS4OO'll1(13\Morlgage _ &: _Security _ Agreement_Rev _ 4.doc r p Jan 08 2009 3:19PM NASON YEAGER GERSON WHITE 5614710894 p.34 EXHIBIT D LIMITED GUARANTY This LIMITED GUARANTY (the nGwnDtV') I~ executed to be effective as of "Guarautor''), for the beDefit of (INSERT], 8 Florida [INSERT] ("Lender"). , 2009, by Norman S. Goddard (1he W!I~g~.eIUH: WHEJrnAS, pursuant to tha.t certain PrOJIlissary Note, dated of eveD date herewith, executed by NSG Properties, loc., a Plorida COTJlOration ("'Bonower'l.lII1.d payable to the <<der of Lender in the original principal8lll0UJlt of Eight HulIdred ThoUSlUld and 00/100 U.S. DoOm ($800,000.00) (together with all renewals, modifications, increases and extensions thereof, the ~e'"), Borrower bas become indebted, and may from time to tbnl! be further indebted, to Lender with. respect te> a loan ('<Loan") which Loan is secured by the lien and security intere8t oftha1 ccrtabl Mortgage and S<<;mity Agreement of even date haewilh c:xewted by Borrower in favor t)f Leader (the "MortRa2e"), and further evidenced. secured or governed by other instruments and documents executed in connection with the Loan (together with the Note and Mortgage, the "Loan Documents"); (and any temlS used in this Gul1allty with initial capiuli%ed letters and nol ~cifjRlIy defill~ ill this Gua.-anty hllYc the meanings given tIl them in the Morlgjlge); and WHEREAS. Lender is not willing to make the. Loan. or olherwise extend credit, to Borrower wde$S Guaran.tor unconditionally guarantees. the payment aDd performancc to Lender of only the "Ouaranteed Oblil!atXms" (as herein defined); and WHEREAS, Guarantor is tbe owneT of a direct or in~ct interest in the BofTOwer and Guarantor wHI directly benefit from the Lender's making the Loan t~ BoJrowel'. NOW, lHEREFORE, as an induoement to Lender to make the Loan to BlIToweT, and to extend such additional credit u Lender may from time to time agree to extend under cbe Loan Documents, end for other good and Yllluable consideration. the: receipt, adequacy and legal sufficiePC)' of which are bcreby ac:knowledged, the parties do hereby agree as follows: ARTICLE J NATURE AND SCOPE OF GUARANTY 1,1 Guaraatv of Guaranteed OblieaUoaL Guarantor hereby irrevocably and uncoOditionally gnanmtees to Lender and its SUCCeS5tlfS and assigns the payment and performance ofonlytbc Ousnmteed Obligations (as herein' defined)' as and when the same shall be due and ~le. whether by lapse of tUne, by acedcratiGn ofmatmity or otneTwise. Gummtor herel>y irre\Iocablyand uDconditionally covenants and agrees that Goarantor is liable aoly for all of1he Guaranteed Obligations as a primary obligor. 1.2 Definillon of Guaranteed Oblie:atIons. As used herein, the tenn "GuaJ8ltteed ObJintions" means only the obligations or liabilities of Borrower or Guarantor to Lc::ndcr to tb= extent but only the eXtent 'of IUlY loss, damage, cost, expense., liability, claim DJ' other obligation incun:ed by Lender (including reasonable attorneys' fees and Cc.sts reasonably incurred) arising out ()fthe full owing: (a) fraud, material misrepresentatioJ2, glO$S negligence or willful misconduct by Borrower or any of its partncT$. oflicenl, principals, members, or Guarantor or mlY other person authorized to make statcmen.ts or reptesenta1ions, or IlCI, OD behalf of&n()Wer or Gwmmtor in connection with the Loan; (b) ~(;al waste commftfed on or to the Mortgage<) Property by Borrower; damage to the Mortgaged Property lIS a result of the intentional misconduct or gross negligence of Borrower or allY of its principals, officers, general partIlc:ra or members, or any agent or employee of Borrower; or tbe removal of any portion of the Mortgaged Property in violation of the terms of the Loan DoeumCll1s following an Event of Default; (0::) subject to 8l'IY right to contest such matters, 8.'1 prc,,'ided in the Mortgage, failure to pay any valid taxes. assessmenta, mechanic's liens, materi'/llmen's liens or other liens on any portion of the Mortgaged Property wbich would be superior to the lien or security title of the Mortgage or the other Loan Documents, 10 the full extent of the amoont claimed by any such lien claimant; ~, Jan 08 2009 3: 19PM NASON YEAGER GERSON WHITE 5614710894 1 ~:; EXHIBIT D (d) Illl legal tOsts and expenses (inctuding. reasonable attorneys' fees) reasonably incurred by Lender (I) arising from or rela6ng to t1:.e filing of (A) a voluntaIy petition under tile U.S. Bankruptcy Code by Borrower or Guarantor or (B) an involuntary petition under the U.S. Bankruptcy Code agaiDst &rrower or Guarantor and Borrower or Gusnmtor fails to commence wi'hin forty five (45) daY$ of the filing of such invchm~petition and thereafter diligently prosecute appropriate legal proceedings to terminate or dissolve such involnntary bankruptcy proceeding and (it) in connection with litigation or otbeT legal proceedings brollght or initiated by Borrower to prevem or delay the collecti.OD Of enforcement of the Loan, inciudillg any legal proceedings to prevent ordelay a foreclos\lre of tile lien of the Mortgage; (e) the breach of any repre!et1tation, wammty, covenant or indemnification proVisIon in that certain EnvironmentallDdemnity Agreement of even dale herewith given by Borrower to Lender or in the Mortgage concerning environmental Jaws,. hazardous substances or asbestos; (1) the misapplication or con'Versioo by Borrower of (A) any insurance proceeds. paid by reason of any loss, damage or destruction to the Mortgaged Property, (B) any lIWlITds or otber ll1Jlonnts received in connection with the condemnation of all or a portion oftbe Mortgaged Property, or (C) llIlY Rents while aD Event of Default exists; (g) any and all loss, damage, cost, expense, liability, claim or other obligation incurred or suffered by Lender by reason of, arising out of oc related to mold, mJ1ckw, funglls, mushroom. spores or other microorganism of any type (including any substance the presence ofwhicb poses an actual or potential tbIeat to human health) affecting the Mortgaged Property tbat arises afteT lhe date bereof due to Borrower's failure to maintain m repaiJ: the Mortgaged Property in accordance with the applicable terms and provisions of tke Loan Documents, including. without limitation, tlle CDS. and expense of any repair, replacement, removal,. cleanup, abatement, disposal, relocation or other remedial actions re.quired at, on or to the Mortgaged Property for purposes of addressing any medical or legal concerns resulting therefrom; (h) my security deposits Or other refundable deposits collected with TC$pect to the Mortgaged Property which are not delivered to Lender upon a sale or foreclosure of the Mortgaged Property 01' other action in lieu thereof, except to tile extent any such security deposits were appljed in accordance with the terms and conditions ofany of the Leases ptior to the occurrence of the Event of Defaulr that gave rise to such sale or foreclosure or other actio.'l in lieu there<Jf; and (i) Borrower's failure to IIlllintllin any oHhe policies of insurance required UIIder the terms of the Mortgage or to payor provide the amount of any ir.s unmce deduct ible foUoowing a casualty or <Jther. insured event or claim. Notwith.standing anything to the contrary in. the Note or any of the Loan DocunietlfS, (A) Lender shall not be deemed to have waived any right which Lender may have under Section 506(a), S06(b), ] 111(1)) or any othet provisions of the U.s. Bankruptcy Code to file a claim for the full amount of the Loan Obligations secured by (and as del'med in) lIle Mortg<lge (}r to require that all collateral shall continue to secu-e aJI (If the Loan Obligations l>wing 10 Lender in IlccoroaIlce with the Loan D<leuments, and (B) Guarantor shall be liable for the full amount cfthe Loan Obligations and all obligations of Borrower to Lender under the Loan Documents in the ~vent that: (i) the Mortgaged Property or any part thereof becomes an lISset in a voluntary ballkruptcy OT insolvency proceeding under the U.s. Bankruptcy Code, or jn an involuntary bankruptcy or msohencyproceeding brought by Guarantor or lIJJ affiliate of Borrower or Gllllfllntor, or in an involuntary banbuptcy or insolvency proceeding in -which Borrower, Guarmtor or an affiliate of Borrower or Guarantor has rolluded or conspired with the person bringing such action; (ii) &nower fails tc maintain its status as a single pUJpose eJltity; (Hi) Borrower consents to any voluntary lien eacumberlng the Mortgaged Property or any ownership interests in Borrower; (iv) Borrower COll5ents to any voluntary assignment, tramfer, or eooveyance of the Mortgaged JlrDperty or any interest therein or of any ownership interests in Borrower; (v) any representation or warranty made by Bonower in the Mortgage W<IS knowingly false or income! when made; or (vi) Borrower fi les, eommences, seeks or prosecutes an action for partition or forced sale of all or any portion -:', of the Land and/or Irnprovements~ 1.3 Nature of Guarant\'. This Guaranty is an irrevocable, IlbsO'lute, continuing guanmty of payment and l'erfoJm8.Jlce of the Guanmteed Obligations and not a guaranty of collection. This Guaranty may not be ~voked by Guarantor and shall contmlle to he effective with respect to any Gaarnnreed Obligations arising or created after any attempted revocation by Guarantor and after such Guarantor's death (in which event this Guaranty shall be bindmg upon Guanmtor's estate and Guarantor's legal representatives and heirs). The fact that at any tinIe or from time to time the Guaranteed ObHgationS may be ~ or reduced shall not release or dischMge the obligation of Guarantor to Lender with respecf to the Guaranteed Obligations. This Gllaranty may be enforced by Lendey and any s.ubseqUCDll1older oftbe Not~ and shall not be discharged by the assignment or negotiation of all Of part of the Note, ~-r Jan 08 2009 3:20PM NASON YEAGER GERSON WHITE 5614710894 p.36 EXHIBIT D 1.4 GU8rapt~ Oblintlons Not Redll~ by Offset. The Guaranteed Obligations and the liabilities and obHgations of Guaranta to Lender for the OullrllDleed Obligations. lihall not be reduced, discharged or releas.ed beQase DI' by reason of any e:xbtiDg or l\Jhlrc oifset" claim or defense of Borrower, or any othel' party, against Lender or agIllnst paymCllt of the Guaranteed ObligatMms, whetber sw:h offset. claim llI' defimse arixs in cormedioJJ with the Guaranteed Obligations (or the tnlIIsactiaos creating me Guaranteed ObJigatiOhS) or otherwise I.Ild OUanmtor hereby waives IIIId relillq1:risbes, to the 1b1Iest e:xtl:Dt pc:nnittcd by applicable law, aU ricflts and remedies to my dcfeDSC, right of offset or other claim which Guarantor may have against Lender, provided that the waiver by GUM"lmtorof all rights and remedies to any def~e, right of oflBct or Dthet elaim walch Guarantor may have against Lender (as opposed to Guarantor's waiver of any such right or remedy that Borrower may have against Lender) is not intc.ndc:d to be., and shall not be comln1ed to be, an agreement by Guarantor to waive or ctbcnrise IClIsen Lender's legal burden of proof in llt1Y suit or proceeding to Qlforce this Guaranty. ].5 Pal'meut Bv Guarantor. If all or any part of the Guaranteed Obligations shall oot be punctually paid when due, wbethes at demand, maturity, acceleration or otherwi~ Guarantor mall, immediately ~J1 demand by Lender, and without presentment, protest, notice of protest, notice of l1OO.paymmt. IlOtice of intention to accelerate the maturity. notice of ac:celcration of the maturity, or any other notice whatsoever, pay in lawful money of the Unitca States of America, the amollnt due on the GU8J1I1tced ObligatiOJls to Lender at I...e:nder's addrelis as set forth herein. Such dem8lld(s) may be made at any time coincident with or aiter the time for pa)'ment of all or part of the Ouaranteed Obligations, and may be made from time to time with respect to the same or different itemi (If Guaranteed Obligations. Such demand shall be deemed made. given and received in accordance with the notice provisions hereof. 1.6 No Duty To PnrSlle Others. It sbaU not be n~essary for Lender (and Guarantor hereby waives ]mY rights wbjeh GUlIIllI1tor may baw to Rquire Lender), in (ll'der to enforce the obligations of Guarantor hereunder, first to (i) institute suit or exhaust its remedies against Borrower, (n) enforce Lender's rights against any collateral which shaD ever bave been given to seCUre the Loan, eiii) join BontlWCr in any action seeking to enfore& this Guaranty, (w) exhaust any remedies available to Lender against aJTY colll\teral which shall ever have been &iven to .secure the Lollll, or (v) resort to any other means of obtaining payment of the Guaranteed Obligations. Lender shall not be required to mitigate damage. or take any other action to reduCe. collect.Of enforce tne GU8IaDteed OO~ . 1.7 Wllivers. Guarantor agrees to the provisions of the Loan Documents, and hereby waives notice of (i) any loans or advances made by Lender to Borrower. (Ii) acceptance of lhis <3uaranty. (fii) lUIy amendment or extension of me Note., the Mortgage or of any ofheJ LoaD Documents, (iv) the execution and delivery by Borrowa- and Lender of DY other loan OT credit B8RCment or of Borrower's execution and delivery of an)' promissory notes or other documents arising under the Loan Documents or in eonnection with the Mcrtgagcd Property, (v) the QC4;\lrreIlce of any breach by Borrower or an Evetlt of Default, (vi) Lender's transfer or disposition of the Guaranteed Obligations, or any part thereof, (vii) sale or foreclosure (or posting or advertising fur sate or foreclOSln) of any collatmll for (he Gummteed Obligations, (viii) protest, proDf of n.on-payment or default by BorrOVler', or (ix) any other action III any time taken or omitted by Lender. and, generally, all demands and nocices of every kind in connection with this Guaranty, the Loan Documents, any documents or ilgreemenrs eVidencing. securing or relating to any of the Guaranteed Obligations and the obligatiol1ll hereby guaranteed. . 1.8 Pavment of EXDeDSts. In the event that GUllClItW>r should breach or fail to timely perform any provisions of this Guaranty, Guarantor sball., immediately upon demand b-y Lender, pay Lender all costs and ex.peIllies (including court costs and reasonable attorneys' fee.) i1lcuJred by Lencler in the enforcemCDt hereof or tl1e preservation of Lender's rilhts hereunder. The covenant contained in this Section shall survive the payment and performance ofthe Guaranteed Obligations onry uutJl the same is paid in full whereupon such covenant shall tc:nzI mate and be of no furthCl' force or effect. 1.~ Effect of Banknmtt;v. In the event that, pursuant to My imolvency, bankruptcy, rcorg811ization, receivership or other debtor relief law. or 8DY judgment, order or decision thereunder, or lII1Y agreement, stipulation or sett.lement, Lender must rescind or restore IDly payment, or any part thereof, receiVed by Lender in satisfactiOn of the Guaranteed Obligations, a! set fonh herein, any prior release or discharge ii'om the terms of this Guaranty given to Guarantor by Lender shall be without effi:et, and this Guaranty shall remain in full force and effect. It is the irItention of Borrower and Guanmtor that Guarantor's obligations he:reunder shall Dot be discharged except by Guarantor's perfonnanec of such obligations and then only to the extent of such perfimnan<:e. Notwithstanding the foregoing provisions of Ibis Section, Gummtor (i) sl1a11 have the right from time to time to assert, prior 10 the indefeasible payment and discharge m full of the Loan ObligatiDDS, any claim of or right to seek 4:ontnlltltion, indemnifleation or any other fonn ()f reimbursement !rom any member of Borrower and (ii) on ar after, bot at no time prior to, the da~ (the .Subroeation Date'? that is nil'lety-oue (91) days after the indefeasible payment and discharge in full of the Loan ObligatiOll5 and if, and only if, the existence or exercise of any of the rights granted to Guarantor in this sentence does not and would not cause Guarantor to be or mult --:, If-- tr Jan 08 2009 3:21PM NASON YEAGER GERSON WHITF 5614710894 EXHIBIT 0 ill Guarant<Jr being a "creditor" (as such term is defined in the BllIlIcruptcy Reform Act of 1978, as amended, II U.S.C. Section 10 J et seq. and the n:gulations promulgated 1h~dcr) of Borrower in any ~olvency, bankruptcy, remgWlization or similar proceeding commenced 011 or prior to the Subrogation Date, then in such event, and only in such event, GuaranUlr shaH have and be entitled to al J rights of subrogation otherwise provided by applicable law Dr any agreement in respect of allY plI}'lJ1enr Guarantor may make or be obligated to make under1his GlJlII1mt)', and to assert 81Jd enforce the same, I.]D Waiver of Sobrul!8tion. Reimbunement and COlltribuDon. NotwithstaIJding anything to the contrary contaiJled in this Guaranty. Qllarantor hereby unconditionally lIJld irrevocably WIIM3, releases and abrogares any and all rigbts Guarantor may now or hereafter have under any agreement, at law or in equity (including. without limitation, any law subrogating Gual1lMOr to the rights of LeJlder). to assert, prior to the indefeasible payment and dIscharge in fuJI of the Loan Obligations, llny claim against 01 seek corrtributiO!l, iDdenmific:nioD or any other fonn of reimbursement nom Borrower for lUly payrnern made by Guaramor under or in connection with this Guaranty or otherwise. 1.11 Borrower. The renn "Borrower" as used berein shall also include any new or ~mccessor corporation, association, partnership (general or limited), joint venture, trust or other individual or organization fonned as a result of any merger, reorganization. sale, transfer, devise. gift or bequest of Borrower or any interest in Borrower. ARTICLE n EVENTS AND CIRCUMSTANCES NOT REDUCING OR DISCHARGffiG GUARANTOR'S OBI.JGATIONS Guarantor !lereby consents and agrees to each oftbe following. and agrees that Guarantor's llbligations under this Guaranty sball not be released, dim.inished, impaired. reduced or adversely affected by lIDY of the following. II1Id waives any common law. equitable, statUtory or other rights (including without IimitaliOll rights Ul notice) whicb Guarantor might otherwise have as a result of or iIlconnectioD with any of the following: 2.1 Modi1IcativllS. My renewal, extell$ion. increWle, modiiJCation, altetlltion or rearrangemCllt of all or any pan of the Loan Oblig;nions. the Note,' the Mortgage, the other Loan Documents, or lmy other document, instrument, contract or understanding between Borrower and Lender. pertaining to the Guaranteed Ob1igations or any fuilure of Lender to notify Guarantor of any such action. 2.2 Borrower. AdJllstment. Any adjustment, indulgence, forbearance 01 compromise that might be granted or given by Lender to 2.3 Couditiollllf BOITower. The wolvm<::y, bankruptt:y, arrangement, adjustment, comptlsitioJl,liquidation, disability, d~solutj()n or lack of power of Borrower; or any sale, lease or transfer ()f my or all of the assets of Borrower, or any changes in the sh.a.Teholden, partners or members of Borro weT; or any reorganization of Borrower. 2.4 Invaliditv of Guaranteed Obliratiltns. The invalidit)', illegality or uneaforceabil~ af ILII or any part of lhe Guaranteed Obligations, or any document 01 agreexmnt executed in connection with the Gll8l'3Ilreed Obligations, for any reason wbatsoever, including without limitation the fact that (I) the Guaranteed Obligations. or liDy . part 'thereof; exceeds the amount permitted by law, (Ii) the act of creating the Guaranteed Obligations or auy part. ther~f ili ultra vires, (fii) the officers or representatives of B6rrower executing the Note, the Mortgage or the otb.!7 Loan Documents or 'otherwi...ooe r:reating the Guaranteed Obligations acted in excess of tbeir authority, (ill) the Guaranteed Ob]iglltions violate applicable 1lSllt)' law&, (v) the Borrower has valid defellSCS, claims or offsets (whether at law, in equity or by agreement) which rencfei'. the Guaranteed Obligations wholly or partially uncoJlectlble from Borrower, (vO the CTClltioIl, perfonnance or repayment of the Guaranteed Obligations (or rhe execution, delivery and performance of any document or instmment representing part of the Guanmteed Obligations or executed in connection with the Guaranteed Obligations, aT given tD SCt:U1e the repayment of the Guaranteed Obligations) is mega~ uncollectible or unenfurceable, or (vii) the Note, the Mortgage or any of the other Loan DocumelllS have been forged or otherwise are irregular or not genmne or autnentic, it being agreed that Gtlarantor shall remain liable hereon regardless of whether Borrower be found not liable on the Guaranteed Obligations or any part mereof for my reason. 2.5 Release of Obli20rs. .AD.y full or pilrtiw release of the liability of Borrower OIl 1lJe Guaranteed Obligations, 01 any part thereof, it being recognized, acknowledged and agreed by Guarantor that Guarlll1tor may be required to pay the Guaranteed ff-. r Jan 08 2009 3:21PM NASON YEAGER GERSON WHITE 5614710894 p.38 EXHIBIT 0 Obligations in full without ossiSfance or support of any other party, and Guarantor has not been induced to enter into this Guaranty on the basis of a coDtempJatioo, belief, understanding or agreement that other parties will be liable to payor pcrfonn the Guaranteed Obligations, or that LendI:lT win look to 1)tb.er parties to payor perfonn the Guanmtecd Obligations. z.cj OOer Collateral. TIle taking or accepting of any other security. coUatual or guanmty, or other- 8.lsurancll of payment, for all or any part of the: Guaranteed ObligatiODS.. 2.7 Rdc:alIe of CoDateraL Any relea&e. surrender, exchange. subordination. deterioration, waste, loss or impairment (including without limilalion negligent, wiJlfuI, unreasonable or unjustifiable impairment) of any oollate:r1ll, property or security at any time existin& in connedion with.. OI essuriDg or securin& payment of, all or any part oftbe Guaranteed Obligations. 2.8 Care aDd DlIi2e1lee. The failure of LeDder- or any other party to exercise diligence or reasonable care in the JXeservation, protectir;m. coforoeme:nt, sale or other handling or treatment of all or any part of such collatend. property ar security, including but not limited to any neglect, delay, omission. fililure or refusal of Lender (i) to take or prose cum my action for 1bc collection of any of the Guaranteed Obligations or (ii) to foreclose, 01 initiate any action to foreclose, or, once commenced, prosecute to completion any action 10 foreclose UpOD any security therefor, or (m) to lBke or prosecute BIIY action in connection with any instrument or agreement evidencing Dr seeming all or my part of the Guaranteed Obligations. 2.9 U.ellroreeabiW:v. The fact that mry collateral, seeurity, se~urity interest cr lien contemplated or intended to be given, ccnted or granted as security for the repayment of the Guaranteed d;;1igatio~:. 'or mY part thereof. shull DOt be properly perfected or created, or shall proye to 'be llIlel1forceeble or subordinate to any' other secumy mtere$t or lien, it being. recognized and agreed by Guarantor that Guarantor is not enteriDg into Ibis Guannty in reliance on, Or in contemplation of the benefits of, the validity, enfurceability, collectibilhy or value af any of the collateral fur the Guaranteed Obligatiol1s. 2.10 OfDet. The Note, the Gwnntced Obligations and the liabil itie.s and obligations of GlWlIntor to unda bcraJnder shall not be reduced, discharged or released ~ause of or by reasOD of any existing OJ fWre right of offisct:. claim 01 deii:ose of Borrower against Lender, or agamst payment of the Quanmteed Obliglltions, whether suclJ ri.gbt of offset, claim or defense arises in conncaioo with the Guaranteed Obligations (or the trusactions creating the Guaranteed Oblig:ations) or otherwise. 2.11 M.!!:&!!:. The reorganization, merger or tXll1solidation of Borrower wio cr with any other cwporation or entity. 2.12 ~nJereace. Any payment by Bonower to Lender is held to constitute a preference under bank:rutJtcy laws, or for any reason Lender is required to refund such payment or pay such amount to Borrower oi someone else. 1.13 Other Adious Taken or Omltted. Any otber acticm taken or omitted to be 1lIlcen widI respect to the Loan DOC1lll1!lDtS. tiu: Guaranteed Obligations. or the security and collateral therefor, \vhetber or 1'101 such action or omission prejudices GlI&'mtor or incJe1lSC9 tile likelihood that Guarantor will be required to pa)' the Guaranteed Ob.ligBtions pursuant to the tenns hereof, it is the 1lnllJIlbiguOlB and unequivocal mtention of Guarantor that Guarantor shall be obligated to pay the Guaranteed Obligations when due, notwithstanding arty OCCIlIreI1Ce, c:ircmmtance, event, action. or omission whatsoever, whetbtr'coDteUWIa1ed or not contemplated, and whether or not otherwise or pertieularIy described herein. which obligation shall be deemed satisfied by Guarantor only upon the full and t"ma1 payment aDd satisfaction of the Guaranteed ObUgations. ARTICLE m REPRESENTATIONS AND WARRANTIES -:-, To induce Len~ to enter into the LoaD Documents and extend credit to Borrower, Guarantor represents and WUTaDts to Leooer as foDows: 3.] Benefit. Guarantor is an affilia1e of BOlTOwer, is the owner of a direct (Jr indirect interest in Borrower, and has received, orwiU receM, direct or indirect benefit from the making of this Guaranty with respect to the Guaranteed Obligations. 3.2 Fallliliarit\l aDd Rclial1Ce. Guarantor is familiar with, and has indepcndeIJtly reviewed books and records rep.rdiDg, the f'1I1lIIlCiaJ eo-ndition of the Borrower and is familiar with the value of ~y. and all collateral intended to be created as 4-'~ Jan 08 2008 3:22PM NASON YEAGER GERSON WHITE C;614710884 ~ ~=4 EXHIBIT 0 security foj the payment or the Note or Guaranteed Obligations; however, GU3l'aI1tor is not relying 011 sucl! financial condition or the collateral as an inducement to enter into this Guaranty. 3.3 No Representation Bv Lender. Neither Lender riOT any other party has made any representation. warranty or statement to Guarantor ill order to induce the Guarantor to execute this Guaranty. 3.4 ~. The execution,. delivery and perfonnance by Guarantor of this Guaranty and the conS'Umrnation (If the transactions contemplated hereunder do not,. and will not, contravene or conflict with any law, statute or regulation whatsoever 10 which Guarantor is subject or COIlStitute 8 default (or an event which with notice or lapse of time or both woukl. constitute a deliluh) under, or result in the breach of, any inden1ure, mortgage, deed of trust, charge, lien, or any contract. agreement or other insbument 10 which GlIarantor is a party or whicl1 roilY be applicable to Guarantor. This GUlIT1IUty is a legal and biDding obligation of GuanlIllor and is enforceable in accadance with its terms, except as limited by banlauptcy, insolvency or other laws of gelleral application relating to the enforcement of creditors' rights. 3.5 Spous8Ilnterest(i) That either (A) Guarantor's spouse is not required to join ill and acknowledge and consent to this Guaranty in order for Lender to make a claim on an of the interests in all of the assets shown on lbe fmancia1 slBtements of Guarantor IlIst delivered to Lender on or prior to the date ortbis Guaranty or (B) till of such assets are Guarantor's !.Ole and separate property and none of such assets constitute any portion of Guaralltor's joint, community, marital or mixed property, or (ii) if neither clause (A) or (8) immediately preceding are true, then Guarantor's spouse has executed this Guaranty for tm express purpose 01 acknowledging and consenting to the same so as to allow the Lender to realize upon such spouse's joint, community, marital or mixed property interest, if any, in all of such assets to satisfy Guacantor's obligatiollS JrnISuant to tbis Guaranty. 3.6 Survival. All representations' and W!lITanties made by GuaraRlor herein sball survive the execuliOIl hereof. ARTICLE IV SUBORDINATION OF CERTAIN INDEBTEDNESS 4.1 Suberdination of All Guarantor Claims. As. used herein. the term ~X1uanmt.oI Claims" shall mean all debts and liabilities of Bon-ower to Guarantor, whether soch debts and liabilities now exist or ate hereafter incUlTCd or arise, cr whether the obligations of Borrowcr 1hen:on be direct, contingent, prillllU)', serondary, se...-eral, joint and several, or otherwise, and irrespective of wbether such debts or liabilities be evidenced by note, contract, open account, or otherwise, and irrespective of the person or persOllS in whose favor such debts or liabilities may, at their iDception, have been, or may hereafter be created, or the manner in which they have been or may hereafter be acquired by Guarantor. The Guarantor Claims shalt include without limitation all rights and claims of Guarantor against Borrower (arising as a result of subrogation or otherwise) as a result of Guarantor's payment of all or a portion of the Guaranteed Obligations. Whenever an Evem of De&u1t exists, Guarantor shall not receive or collect, directly or indirectly. from Borrower any amounl upon the Guarantor Claims. .....-: 4.2 Claims in B8DkroplCV- In the event of receive[Ship, bankruptcy, reorgam:zation, arrangement, debtor's relief, or other insolvency pmceedings involving Guarantor as debtor, Lender shan haV6 the right to prove its claim in lUly such proceeding so as to establish its rigbts hereunder and receive directly from the receiver, trustee or olher court custodian dividends and payments wbicb would o1herwi~ be payable upon Guarantor's Guarantor Claims. Guarantor hereby assigns such dividends aDd payments to Lender. Sbould Lender receive, for application upon lhe Guaranteed Obligations, any such dividend or payment which is otherwise payable to Guamntor, and which, as between Borrower and Guarantor, shall constitute a credit \!pOD Guarantor's Guarantor Claims, then upon payment to Lend er in full of the Guaranteed Obligations, Guarantor shall become subrogated to the rights of under to the extent that such payments to LeOOel' on such Guarantor Claims liave contributed toward tbe liqllidation of Guarantor's obligations for the Guaranteed Obligations, and sucb subrogation shall be with respect to tbat proportion of Guarantor's obligations for tbe Guaranteed Obligations whicb wau!d have been unpaid if Lender had not received dividends or payments UPOtl Guarantor's Guarantor Claims. . 4-3 Pal'menu Held ill Trust. In the event tha!~ notwithstanding anything to the contrary in this Guaranty, Guarantor should receive any fUnds, payment, claim or distribution which is prohibited by this Guaranty, GU&1Intor agr-ees tD hold in trusl for Lender an amount equal to the am01Dlt of all funds, payments, claims or distributions so're<<ived, and agrees that Guarantor snaIl have absolutely no dominion over the amount of su.ch funds, payments, <:1aiIns or distnbutions so received except to pay them promptly to L.ender, and Guarantor covenants promptly to pay the same to Lender. f p Jan 08 2009 3:23PM NASON YEAGER GERSON WHITE 5614710894 p.40 EXHIBIT D 4.4 Lieu, &lbordinale.. GUlll'8olor agrees that any Hens, secwity iDtensls, judgment liCDS, charges or Dther encumbranWl upon Borrower's assets seeming payment of any of the Gnanntor Claims shall be and remam jnw;Clr and subordinate to any liens, security interests, judgment IiCIIS, charges or otber encUJ1lbrances upon Bonuwer's assett securing pBymen1 of the: Guaraateed Obligations., regardless of whether such encumbrances in favor of Guanmtor or Lender presently exist f1I are hereafter created or attach.. Without the prior written consent of Lender. Guarantor shan not (1) exercise or enforce any aeditors right ~- GCBIlUltor may have against Borrower, or- (ii) foreclose. repossess, sequester or otherwise take. steps or illstitute any aeticn or proceedings (judicial or ctherwise, including. without limitation, the couunencem~t of, or joinder in, any liquidation. bankruptcy. rcarrangao.ent, debtor's rei ief or iDsolvent:;y proceeding) to enforce any liens, mortgage. deeds of 1rust, security interests, collateral rigbtll,judgmcnts or other encumbrances on asset! ofBarrowcr held by GulUllntor. ARTICLE V MISCELLANEOUS 5.1 Waiver. No fililurc to exercise, end 110 delay in exercilling. on the part of Lender, any rigbt hereunder shall operate as e waiver 1hcroot: nor shall any single or partial ~erclse the:reofpreclude any other or further exercise thereof or the e:cerdse of any other righl The righls of Leder hercrunder shllll be in addition to aU other rights provided by law. No modificati01l or waiver of any provirlon ohms Guaranly. nor consent to depllltUJe therefrom, shaD be effedive unless in writing and no such COIJSCDt or waivu- shall extend beyond the partic:01ar case aDd purpose involved. No notice or demaJld given in any case shall constitute a waivei' of the right to take other action ill the same, slmBar or other instances without such notice or demand. s.] Notices. Any 1KJtice, demand, statement, request or consent made hereunder- shall be in writing. addressed to the addn:ss, liS set forth below, of the party to whom such notice is to be given, or to such other address as Guanwtor or Lender, as the ClIlSIl ma)' be, shall &signate in writiDg, and shall be deemed to be received by the addressee on (i) the day such notice is personally delivered to such addressee, (Ii) the Ihil'd (3m) day following the day such notice is deposited with the United States postal service first class certified mmJ. return receipt requested, (iii) die day following the day on which such ~otice is deliYCtCd to a nadonally recognized overnight courier delivery service, or ("IV) 1I1e day facsimile transmi.sskm is confirmed after transmission of such notice by tel.ecopy to sucb telccopier nwnber liS Guarantor or Lender. as the case may be, shall have previously deaignatec\ in writing. The , arldrcsses oftbe parties hemo arc as follows: Quanultor: Nonnan S. Goddard, (INSERT CONTACT IJIiPORMATION); ~: IINSERTI, riD Rilschmai1 Enterpr.ises, AttD: BriaD W. Smith, 6300 NE lit Ave, Suite 101}, Fort Lauderdale, FL 333-~4, 954-34~2470.. direct, 9S4-776-7918-facsimile. 5.3 GcwerDtlU!: Law. This Guaranty shall be governed by and construed in accordance with the law,; of the State in which the real property encumbered by the Mortgage is located and the applicable laws of the United States of AmeriClI. 5.4 maUd ProrisblU- If any provision of this Guaranty is held to be illegal, invalid. or unenforceable under present or future laws effective during the term of this Guaranty. such provision shall be fillly severable and this Guaranty she n be construed and enforced as if such illegal, invalid or \IlleJlforceable pr<Msion had never comprised 8 part of this OuaIanty, and tile remaining provisions of this Guaranty sbaJ] remain in fuU force and effect lIDCI shall Dot ~ affected by the illegal, inYlllid or unenforceable provision or by iIB severance from this Guaranty, unleS$ such continued effectiveness of this Guaranty, as modified, would be contnlry to the basic tmderstandings and intentions of the pN1ies as expre5aCd herein. 5.5 Amf:ndmeats. This Guaranty may be amended only by an instrUment in writing exewted by the party or an authorized representative of the pll11y against whom such amendment is SDUght to be ~fon:ed. ..-:. 5.6 Parties BOUJId: Asstl!RJDeJlt. This Guaranty &ball be binding lIpon and inure to the benefit of the parties hereto and their respective successors, assigns and legal reprcscmatna; provided, ~, that Guaranlor may not, without !he prior written consent of Lenda, assign any of its rights, powers, duties or obligations hereunder.' 5.7 H~djDIlS. Section beadings lITe for c01lvenience ofrefc:rence only and shall in 110 way affect the interpretation of this Guaranty. 5.8 Recitals. The recital and introductory ParagTaphs hereof are a r-art her-eof, form a basis for this Guaranty and shall be considcFed m:imA ~ evidence of the :fBcts and dowments referred to therein. F~ Jan 08 2009 3:23PM NASON YEAGER GERSON WHITE 5614710894 EXHIBIT D 5.9 Rh~U$ aDd Remedies. If Guarantor becomes liable for any indebtedness owilJg by Borrower to Lender, by c:ndo~ement or otherwise., other thaD under this Guaranty, sllch liability shall not be in any manner bnpaired or affected hereby and the rights of Lender hereunder shall be cumulative of any and all other righu that Lender mll)' ever have again.st Guanmlor. The exercise by Leeder of any right or remedy hereunder or under any other insrrument, 01' a1 Jawor in equity. shall n(Jt preclude the concurrent or subsequent exercise of any o1her righ1 or remedy. 5.10 Other Defmed Terms. Any capitalized term utilized herein shall have the meaning as specified in the Mortgage, unless sllell ttrrm is otherwise specifically defined b.c::rein. Unless the context clearly inrlif:ares 8 contrary intent or unless otherwise specifically provided herein, words used in this Guaranty may be used interchallgeably in singular or plural fonn. 5.11 EntirelY. THIS GUARANTY EMBODIES 1HE FINAl., ENTIR:S AGREEMENT OF GUARANTOR AND LENDER WITH RESPECT TO GUARANTOR'S GUARANTY OF THE GUARANTEED OBUGATIONS AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETIffiR WRIITEN OR ORAL, RELATING TO TIlE SUBJECT MATJER HEREOF. TIllS GUARANTY IS INTENDED BY GUARANTOR AND LENDER AS A FINAL AND COMPLETE EXPRESSION OF THE TERMS OF THE GUARANTY, AND NO COURSE OF DEALING BETWEEN GUARANTO:R AND LENDER. NO COURSE OF PERFORMANCE, NO TRADE PKACTICES, AND NO EVIDENCE OF PRIOR, CONTEMPORANEOUS OR .sUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OR OTHER EXTRINSIC EVIDENCE OF ANY NATURE SHALL BE USED TO CONTRADICT, VARY, SUPPLEMENT OR MODIFY ANY TERM OF TIllS GUARANTY. THERE ARE NO ORAL AGREEMENTS BETWEEN GUARANTOR AND LENDER. 5. J2 Waiver of Ril!bt TD Trial Bv .JUry. GUARANTOR HEREBY AGREES NOT TO 'El..Ecr A mAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY roRY, AND WAIVES ANY RIGHT TO TRlAL BY WRY FULLY TO THE EXTEloIl TIIAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER IDQST WITH REGARD TO THIS GUARANTY, THE NOTE, THE MORTGAGE, OR THE OTIffiR LOAN DOCUMENTS, OR ANY CLAlM. COUNTERCLAlM OR OTHER ACTION ARISING IN CONNEGnON THEREWITH. TillS WAJVER OF RlOHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILy'-BY GUARANTOR. AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH'TIm RIGJIT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE.. LENDER IS HEREEY AUTHORIZED to FIlE ~:COPYOF THIS PARAGRAPH IN Am PROCEEDING AS CONCLUSIVE EVlDENCE OF THIS \V AlVER BY GUARANTOR. 5.13 Assi2oment. Gllarantor acknowledges that lender and its successors and assigns may sell, ass ign or transfer this Guaranty, the Note and other Loon Documents 10 one or more invenors. 5.14 RehlstatemeDt in Certain Circull1W1nces. Ifat any time any payment of the principal of or interest undertbe Note aT any other arnonnt payable by the Borrower under the LOlm DocumeDls is rescinded or must be otherwise restored or returned upon the insolvency, bankruptcy or re<lI'gaDizatkm of the Borrower or otherwise, Guarantnr's obligations hereunder with respect to such payment shall be reinstated as though such :payment has been we but not made at such time. Th e remabuler of tills page Is left blm,k. Th e signature page follows. ;- ~. Jan 08 2009 3:24PM NASON YEAGER GERSON WHITE 5614710894 p.42 EXHIBIT D Executed as of !he day and year fust above written. Gurantor. NOtlllanS. Goddard ACKNOWLEDGMENT STATBOF COUNTY OF 'The foregoing mstrument was sworn to, subscribed, and acknowledge4 bdore me this _ day of . 2009, by }o1ornum S. Goddard. He is ptnonaUy known to me or presented a driver's license as irlcntification and did not take an oatb, Notary Stamp/Seal: Notary SignatUle: Notary Print Notary PubJi<:. State of Commis~on No.: My Commission Expires: J:\W-l'LO\05460\003\Ouilfinly _ Ooddw_ Rev _1.lIoc r-- ,- SUBORDINATION AGREEMENT THIS SUBORDINA nON AGREEMENT (this "Agreement") made as of the _ day of , 2009, by and between 3675 Acquisition, LLC, a Florida limited liability company, whose address for notice under this Agreement is 6300 N.E. 1 st Avenue, 3rd Floor, Fort Lauderdale, Florida 33334, Attention: Brian Smith, ("Lender"), and Boynton Beach Community Redevelopment Agency, a public body, corporate and politic, duly created and operated pursuant to Chapter 163, Florida Statutes, whose address for notice under this Agreement is 915 S. Federal Highway, Boynton Beach, Florida 33435 ("City"). Introductory Provisions A. Lender has agreed to make a loan to NSG Properties, Inc., a Florida corporation ("Borrower"), which will be evidenced by a promissory note (the "Note") made by Borrower to order of Lender and will be secured by, among other things, a mortgage, assignment and security agreement (the "Mortgage") made by Borrower covering the land (the "Land") described on Exhibit "A" attached hereto and all improvements (the "Improvements") now or hereafter located on the land (the Land and the Improvements hereinafter collectively referred to as the "Property") . B. The City and the Borrower entered into that certain Restrictive Covenant and Right of First Refusal recorded in Official Records Book 22788, Page 1102, of the Public Records of Palm Beach County, Florida (the "Restrictive Covenant") which includes a right of first refusal (the "Right of First Refusal") (which Restrictive Covenant, as the same may have been amended and supplemented as of the date hereof). C. The parties hereto desire to make the Right of First Refusal subject and subordinate to the Mortgage in accordance with the terms and provisions of this Agreement. NOW, THEREFORE, the parties hereto, in consideration of the covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, hereby agree as follows: I. The Right of First Refusal, as the same may hereafter be modified, amended or extended, and all of the City's rights, remedies and options related to the Right of First Refusal under the Restrictive Covenant, are and shall be unconditionally subject and subordinate to the Mortgage and the lien thereof, and to all renewals, modifications, consolidations, replacements, substitutions and extensions of the Mortgage. 2. The City agrees to give Lender a copy of any default notice related to the Restrictive Covenant sent by the City to Borrower. The City agrees not to exercise any right under the Restrictive Covenant due to any default by Borrower until it has given written notice of such default to Lender and a period of not less than thirty (30) days for remedying such default. If Borrower's default cannot be cured within such thirty (30) day period, the time within which such default may be cured by Lender shall be extended for such reasonable period as may be necessary to complete the curing of the same so long as Lender proceeds promptly to effect a cure (including such time as may be necessary to acquire possession of the Premises from Borrower, if possession is necessary to effect such cure) and thereafter prosecutes the curing of such default with diligence. Lender's cure of Borrower's default shall not be considered an assumption by Lender of Borrower's other obligations under the Restrictive Covenant. 3. If Lender acquires fee simple title to the Property Lender shall not be liable or bound to the City (a) for any act, obligation or omission of any prior Property owner (including Borrower); or (b) for any claims, offsets or defenses which the City might have against any prior Property owner (including Borrower); or (c) by any modification or amendment of the Restrictive Covenant, or any waiver of any terms of the Restrictive Covenant, unless such modification, amendment, or waiver was consented to in writing by Lender. If Lender becomes the fee simple title owner of the Property, Lender shall be liable to City under the Restrictive Covenant only for matters arising during Lender's period of ownership of the Property, and such liability shall terminate upon the transfer by Lender of its interest in the Property and the assumption of such liability by Lender's transferee. 4. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute and be construed as one and the same instrument. 5. All notices or other communications required or permitted to be given pursuant to this Agreement shall be in writing and shall be considered as properly given if (a) mailed by first class United States mail, postage prepaid, registered or certified with return receipt requested; (b) by delivering same in person to the intended addressee; or (c) by delivery to an independent third party commercial delivery service for same day or next day delivery and providing for evidence of receipt at the office of the intended addressee. Notice so mailed shall be effective upon its deposit with the United States Postal Service or any successor thereto; notice sent by a commercial delivery service shall be effective upon delivery to such commercial delivery service; notice given by personal delivery shall be effective only if and when received by the addressee; and notice given by other means shall be effective only if and when received at the office or designated address of the intended addressee. For purposes of notice, the addresses of the parties shall be as set forth above; provided, however, that every party shall have the right to change its address for notice hereunder to any other location within the continental United States by the giving of thirty (30) days notice to the other parties in the manner set forth herein. 6. This Agreement shall be interpreted and construed in accordance with and governed by the laws of the state where the Property is located. 7. This Agreement shall apply to, bind and inure to the benefit of the parties hereto and their respective successors and assigns. As used herein "Lender" shall include any subsequent holder of the Mortgage, and any transferee of Lender's or Borrower's title in and to the Property by or following Lender's exercise of its rights and remedies under the Mortgage. The remainder of this page is blank. The signature pages follow. IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written. WITNESSES: LENDER: Print: 3675 Acquisition, LLC, a Florida limited liability company, Print: By: Name: Print: ACKNOWLEDGMENT STATE OF ) COUNTY OF ) The foregoing instrument was sworn to, subscribed, and acknowledged before me this _ day of ,2009, by , as of 3675 Acquisition, LLC, a Florida limited liability company, on behalf of the limited liability company. He is personally known to me or presented a driver's license as identification and did not take an oath. Notary Stamp/Seal: Notary Signature: Notary Print: Notary Public, State of Commission No.: My Commission Expires: WITNESSES: CITY: Boynton Beach Community Redevelopment Agency, a public body, corporate and politic, duly created and operated pursuant to Chapter 163, Florida Statutes Signature Print Name Signature By: Name: Its: Print Name ACKNOWLEDGMENT STATE OF FLORIDA ) ) SS: COUNTY OF PALM BEACH ) The foregoing instrument was acknowledged before me by , as of Boynton Beach Community Redevelopment Agency, a public body, corporate and politic, duly created and operated pursuant to Chapter 163, Florida Statutes, on behalf of the public body, corporate and politic, duly created and operated pursuant to Chapter 163, Florida Statutes, and who is personally known to me or has produced a Florida driver's license as identification. 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J!l!lI I 1:\ W-PLD\05460\O03\SNDA_NSG.doc ....... -,i Development Experience 20+ Years of Innovation and Leadership in Affordable Housing Development Successful in obtaining over $250,000,000 in subsidy Successful development and management of 5,000+ Housing Tax-Credit Apartments 4 time NAHB Award Winner for building the (lFinest Affordable Housing in the Country" First in State to develop - Tax-Credit Housing, and SAIL, and Workforce Housing Successful development and management of 868 market rate rental apartments Construction and sales of 333 Subsidized Single Family Homes Construction and sales of 588 Condominiums Construction and sales of 66 Townhouses (Workforce Housing) Development of two (2) successful life care retirement communities Development of thirty six (36) nursing homes Development of two (2) Retail Malls Proven Track Record Auburn Group has a proven track record of delivering on its social mission in a fiscally responsible manner. 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