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08-16-88 Special/Workshop ~--~ Please be advised that if a- person or persons decides to appeal any decision made by the City Commission with respect to any matter con- sidered at this meeting or hearing, such persons will need a record of these proceedings, and for this purpose such persons 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. The City does not provide or prepare such record. SPECIAL MEETING OF DELRAY BEACH CITY COMMISSION Pursuant to Section 3.07 of the City Charter of the City of Delray Beach, Florida, Mayor Doak S. Campbell has instructed me to advise you of a Special Meeting of the Commission to be held in the Commission Chambers at 7:00 P.M., Tuesday, August 16, 1988. This meeting has been called for the purpose of considering: (1) CRA Parking Garage. (A) Resolution No. 44-88 authorizing the CRA to institute condemnation proceedings on a parcel of property lying immediately north of N.E. 1st Street, east of N. E. 7th Avenue, across from Atlantic Plaza, being known as The Harbor View Apartments. (B) Public Hearing and approval of contract between the City and the CRA for the transfer of certain air rights over N.E. 1st Street to facilitate the construction of a parking garage. (C) Resolution No. extension of a $300,000 to the 45-88 line of CRA. authorizing the City's credi t in the amount of (D) Approval of Interlocal and the City for the credi t by the City to $300,000. Agreement between the CRA extension of a line of the CRA in the amount of (E) Discussion of agreement between Atlantic Plaza and the City concerning in lieu of parking fees relative to the Atlantic Plaza site plan modifica- tion. (2) Update on the consideration requirements. City-wide of waiver beautification project and of contractor's bonding ( 3) Resolution No. 46-88 awarding details of the City's Water and ing Bonds Series 1988. and determining the Sewer Revenue Refund- ~~. &:<-~~ q~ El1z th Arnau City Clerk City of Delray Beach - r--- _..______._._____ _ -Ii I i! I ,I RESOLUTION NO. 44-88 ~ i: Ii I A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, F'LORIDA, AUTHORIZING THE ACQUISITION OF CERTAIN REAL PROPERTY AS HEREINAFTER DESCRIBED BY THE DELRAY BEACH COMMUNITY REDEVELOPMENT AGENCY BY GIFT, PURCHASE OR EMINENT DOMAIN; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. if 'I Ii II :! WHEREAS, by Ordinance No. 46-85 adopted by the City of Delray I Beach, the City COllUnission of the Ci,ty of Delray Beach, Florida, created the Delray Beach Community Redevelopment Agency; and WHEREAS, pursuant to Section 163.370 (1)( e) (2) , Flor ida Statutes, the Delray Beach Community Redevelopment Agency possesses the power to acquire by gift, purchase or eminent domain any real property within the Community redevelopment area; and WHEREAS, Section 163.370(1)(e)(2), Florida Statutes, further provides that a 80mmunity redevelopment agency may not exercise any power of eminent domain unless the exercise has been speCifically approved by the government body of the municipali ty which established the agency; and WHEREAS, the City Commission of the City of Delray Beach, Florida, deSires to approve or authorize the acquisition of the property hereinafter described by the Delray Beach Community Redevelopment Agency by gift, purchase or eminent domain. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF T!iE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. hereby authorized to certain property more Lots 1, 2 and 3, PARK COURT SUBDIVISION, as shown on the plat thereof recorded in Plat Book 10, Page 74, of the Public Records of Palm Beach County, Florida. The Delray Beach Community Redevelopment Agency is acquire by gift, Purchase or eminent domain that specifically legally described as follows: passage. Section 2. This ReSOlution shall take effect immediately upon PASSED AND ADOPTED in Special session on the , 1988. day of ATTEST: MAY 0 R City Clerk f+ CONTRACT FOR CONVEYANCE OF AIRRIGHTS ~ This Contr~ct for Ccnveyallce of Airrights is made and ~--'--- entered into this day of 1988, by and between THE CITY OF DELRAY BEACH, hereinafter referred to as the "CITY," and THE DELRAY BEACH COMMUNITY REDEVELOPMENT AGENCY, hereinafter r-eferred to as the "CRA. II WIT N E SSE T H: WHEREAS, the CITY is the Owner of certain real property known as the public right-oF-way for Northeast First Street lying east of Northeast Seventh Avenue and west of the Intracoastal Waterway; and WHEREAS the CRA 1 S in need of acquiring the rights to the certain airspace abo~e ~ portion of the CITY' s said real property for the purpose of the constrllction, 'lupport, 3nd maintenance ofl'a public par~ing Rtrur::ture over) above, and across the CITY's underlying l"nd. , NOW, THEREFORE, in consideration of ten dollars ($IO.OOl and other good and vallJsble consideration paid to the CITY) the receipt and ~(ieqllacy of which ts 11ereby acknowledged the CITY Bflrl the CRA hereby agree as follows: 1. The CITY upon ten days (10) advance written notice from the eRA shall convey an e,']Aement for the exclusive use of the airrights over and above a portion of the CITY's above described real property, such airrights to be mare specifically determined by the final site plan review for the CRA's said above referred to parking garage structure. The conveyance of the easement shall be tn forln slJbstanti~lly as that attached hereto Exhibit IlA,II 2. Thi,<; Agreement shall be binding ;3.00 inure to the benefit of tile p~rties hereto tJlcir StlCCessors ~nd assigns. CITY OF OELRAY BEACH By: Doak Campbell, Mayor ~ ATTESTED TO: By: ~ City C1eri< APPROVED AS TO FORM: By: City Attorney ATTESTED TO: By: Secretary COMMUNITY REDEVELOPMENT AGENCY By: Chairman , 2 . AIRRIGHTS EASEMENT This Airrights Easement is made and entered into this -=-- - "':-: day of 1988, by and between CITY OF DELRAY BEACH, ~ Florida municipal corporation, hereinafter referred to as "CITY," and the DELRAY BEACH COMMUNITY REDEVELOPMENT AGENCY, hereinafter referred to as HeRA." WIT N E SSE T H: WHEREAS, the CITY 15 tile owner of that certain real property descri.bed in Exhibit nAil att.'lched hereto and made a part hereof; :loci WHEREAS, the CRA .s .n need of acquiring the rights to the a.rspace above the CITY's said land suel1 airspace being described 10 Exhibit liB" attached hereto .qnci made a part hereof. Such airrights are intended to be used for the construction of a sky bridge over and across the CITY's underlying land. NOW, THEREFORE, .n consideration of Ten Dollars ($10.00) and other good and v~luable consideration paid to the CITV, the receipt and adequacy of which ,s acknowledged, the CITY hereby agrees to convey an Airrights Easement to the eRA over the land below described for the purposes and in the manner expressed below. 1. The CITY hereby grants, bargains, and conveys to CRA the ex c 1 u s i v e per pet 1l.3. 1 and un e n cum be red e a s em e n t for th e use 0 f the a'rspace together rights of structural support described .n Ex h i bit II B " for sue h p ur p 0 s e s a s the eRA s h all de t e r m i net 0 b e proper, including but not limited to the construction of an "ky bridge through said airspace. 2. The CITY hereby agrees thot the CITY's property lying below and above the above referred to airspace shall not be tIsed l~ any :nanner which shall interfere with the CRA's excluRive llRe of ~IJch alrspace or the structures included within such airspace. 3. The parties hereby agree that CRA shall be entitled to ~nc\lrnber any improvements placed within the above described airspace by placing the same 3S security for any instrument oi indebtedness 3S the eRA shall elect. 4. This Agreement shall be binding and inure to the benefit of the parties hereto, their heirs, successors, assigns, tenants, gra'l'F!"'9.li:-8, _ ~'3nd invi tees. CITY OF DELRAY BEACH ATTESTED TO: By: Doak Campbell, Mayor By: City Clerk APPROVED AS TO FORM: By: City Attorney STATE OF FLORIDA COUNTY OF PALM BEACH Before me BEACH, to me described in acknowledged instrument for this day personally appeared THE CITY OF DELRAY well known and known to me to be the perAon and who executed the foregoing instrument, and to and before me that executed said the pllrposes therein expressed. WITNESS my hand and official seal, this l 988. day of Notary Public State of Florida My commission expires: (SEAL) WITNESSES: DELRAY BEACH COMMUNITY RE- DEVELOPMENT AGENCY By.: STATE OF FLORIDA COUNTY OF PALM BEACH Before me personally appeared Chairman of the above named DELRAY BEACH COMMUNITY REDEVELOPMENT AGENCY, to me well known and known to me to be the individual described in and who executed the foregoing instrument and severally acknowledged to and before me that executed such instrument as such President, respectively, of said corporation, and that the seal affixed to the foregoing instrument is the corporate seal of said corporation and that it was affixed to s .'} i din s t rum e n t b Y due .:\ n d reg 11 1 .:i reo r po rat e aut h 0 r i t y, and t hat ~3id inRtrument is the free net qnd deed of ~3id corporation. WITNESS my hand and official seal, this I 988 . day of Notary Public State of Florida My commission expires: (SEAL) 2 PAYMENT IN LIEU OF PARKING AGREEMENT ~is Agreement {or Payment in Lieu of Parking herein- after referred to as the "Agreement", is made and entered into this day of August, 1988, by and between ATLANTIC PLAZA LIMITED, a Florida limited partnership, hereinafter referred to as "ATLANTIC PLAZA", and the CITY OF DELRAY BEACH, a Florida municipal corpo~ation, hereinafter referred to as the "CITY". WIT N E SSE T H: WHEREAS, ATLANTIC PLAZA is desirous of constructing a department store on its current site, which such site is within the Downtown Development Area and within the Delray Beach Community Redevelopment Agency (hereinafter referred to as CRA) area; and WHEREAS, Section 173.532 of the Code of Delray Beach requires that ATLANTIC PLAZA either construct additional parking spaces to accommodate the additional parking demand created by the new construction or pay to the CITY Two Thousand Five Hundred Dollars ($2,500.00) per space in lieu of providing the actual parking spaces; and WHEREAS, CITY has deemed it to be appropriate for ATLANTIC PLAZA under said CITY Code to make the in lieu of payment to the CITY; and WHEREAS, the CITY has determined that it is in the public's interest to construct a parking garage facility; and WHEREAS, the CITY has made a determination through the combined efforts of the City and Community Redevelopment Agency in determining that the area most impacted by the ATLANTIC PLAZA construction will be the area lying north of Atlantic Avenue and east of Northeast Sixth Avenue on the the east of the Intracoastal Waterway and on the north Northeast Second Street; and WHEREAS, ATLANTIC PLAZA is desirous of entering into this Agreement in order to make the "in lieu of payment" to the € CITY by a combination of conveyance of the properties described in Exhibits "A" and "B" to the CITY and the execution of a ~-....: Promissory Note as hereinafter described in this AGREEMENT. NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, the parties hereby agree as follows: 1. ATLANTIC PLAZA shall pay to the CITY an in lieu of parking payment with respect to the construction of the proposed department store in the amount of Two Thousand Five Hundred Dollars ($2,500.00) per required space as determined at the time of final approval for the ATLANTIC PLAZA site plan modifications which amount is to be paid as follows: A. ATLANTIC PLAZA shall convey to the CITY good and marketable title to that certain real property de- scribed in Exhibit "A" and will receive credit towards the in lieu of parking payment in an amount equal to the appraised value of the property as determined by Anderson and Car, Inc. B. ATLANTIC PLAZA shall convey to the CITY good and marketable title to the airrights described in Exhibit "B" and will receive credit towards the in lieu of parking payment in an amount equal to the appraised value of the property as determined by Anderson and Car, Inc., such convey- ance of airrights to be in form attached hereto as Exhibit "C". C. ATLANTIC PLAZA shall deliver to the CITY a Promissory Note for the remaining in lieu of parking payment due in accordance with the following terms and in a form acceptable to the CITY. Terms of the Note shall require payment over 15 years with interest at the rate of 0%, such payments shall be made in ten (10) equal annual installments payable on the anniversary date of this AGREEMENT commencing in year five (5) and conclUding on year fifteen (15). The note shall include a forgiveness provision whereby in the event the CITY's Commission eliminates the requirement for parking or payments in lieu of parking within the Downtown Development 2 Area, the unpaid balance of the Promissory Note shall be forgiven or proportionately reduced accordingly. 77-~ Prior to closing ATLANTIC PLAZA shall deliver to the CITY a title insurance commitment on a company acceptable to the CITY showing good and marketable title to be vested in ATLANTIC PLAZA and all requirements of ATLANTIC PLAZA to convey said properties to the CITY, which such requirements shall be met prior to closing. 3. The parties shall pay the closing costs respec- tively in the manner customary to real estate transaction in Palm Beach County, Florida as adopted by the most recent addition of the Florida Bar Contract. 4. The parties expressly agree that nothing in this AGREEMENT shall give ATLANTIC PLAZA or any third party any rights or interest in requiring the construction of the pro- posed parking garage facility and that ATLANTIC PLAZA's only rights arising out of this AGREEMENT shall be those emanating from its compliance with the making of the payment in lieu of parking and any rights arising out of the Promissory Note referred to in lC above. WITNESSES: ATLANTIC PLAZA LIMITED By: ATTEST: CITY OF DELRAY BEACH By: 3 I ) if S r-S- ,g O'~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA APPROVING THE ACQUISI- TION OF CERTAIN REAL PROPERTY AND THE CONSTRUCTION AND INSTALLATION OF CERTAIN PARKING FACILITIES AND EQUIPMENT BY THE DELRAY BEACH COMMUNITY REDEVELOPMENT AGENCY; AUTHORIZING THE ISSUANCE OF REVENUE BONDS OR NOTES BY THE DELRAY BEACH COMMUNITY REDEVELOPMENT AGENCY FOR THE FINANCING THEREOF; AUTHORIZING THE EXECUTION AND DELIVERY OF A LINE OF CREDIT AGREEMENT IN FAVOR OF THE COMMUNITY REDEVELOPMENT AGENCY; AND CONSENTING TO THE WAIVER OF CERTAIN PROVISIONS OF AN EXISTING AGREEMENT WITH THE COMMUNITY REDEVELOPMENT AGENCY. WHEREAS, the governing body of the Community Redevelopment Agency of Delray Beach, Florida (the "Agency") is authorized and empowered under the Community Redevelopment Act of 1969, as amended, Section 163.330 et seq., Florida Statutes (the "Act"), to acquire, construct, reconstruct, improve, own, operate and maintain pUblic improvements necessary for the carrying out of the community redevelopment objectives of the Act; and WHEREAS, the construction, operation and maintenance of the public improvements described in Section 3 hereof is being undertaken by the Agency in accordance with the community redevelopment plan heretofore approved by the City Council of the City of Delray Beach, Florida (the "City") and the Agency; and WHEREAS, the Agency is authorized and empowered under Section 163.385, Florida Statutes, to issue redevelopment revenue bonds to finance the costs of acquisition, construction and in- stallation of such pUblic improvements for the purpose of 09016/8 (!,/ rehabilitating its community redevelopment area and, in anticipation of the sale of such revenue bonds, the Agency is empowered to issue bond anticipation notes payable from any revenues of the Agency available therefor and not otherwise pledged or from the proceds of the bonds in anticipation of which they were issued; and WHEREAS, the Act provides that the power to autorize the issuance of redevelopment revenue bonds or notes is vested in the governing body of the City; and WHEREAS, it is in the best interest of the people of the City to construct the improvements referred to in section 3 hereof and finance the same through the issuance by the Agency of redevelopment revenue bonds or bond anticipation notes. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Delray Beach, Florida (not less than two-thirds of all the members thereof affirmatively concurring) as follows: Section 1. The City Council has ascertained and hereby determines that the general improvements described in Section 3 hereof are necessary for the proper functioning of the community redevelopment plan heretofore approved by the City and adopted by the Agency, serve a valid public purpose and are essential for the prevention of the development or spread of urban blight and encouragement of needed community rehabilitation. The City Council hereby determines that it is necessary to raise money to -2- finance the cost of the general improvements described in Section 3 hereof, which general improvements are hereby authorized to be made or acquired by the Agency. Section 2. For the financing of said purposes and to meet the part of the costs of the improvements approved in Section 3 hereof not provided for by application hereunder of current funds, if any, of the Agency anticipated to be available therefor, negotiable revenue bonds of the Agency are hereby authorized to be issued in the aggregate principal amount of not to exceed J, (tV,dW $3,~ff;ooo pursuant to Section 163.385, Florida Statutes. In / anticipation of the issuance of said bonds and to temporarily finance said improvements or purposes, negotiable notes of the Agency in the principal ~ ' p-JJ<ml amount of not exceeding $ , OQ.,OOO are ..-..-/ hereby authorized to be issued pursuant to and within the limitations prescribed by Section 163.385, Florida statutes. In connection with the sale of such bond anticipation notes, the following matters are hereby determined and authorized: (a) The Board of Commissioners of the Agency is hereby authorized and directed to take all actions necessary to issue the redevelopment revenue bonds or notes and to conduct a public or private sale of such revenue bonds or notes of the Agency pursuant to and within the limitations prescribed by the provisions of the Act. -3- (b) The interest rate on such revenue bonds or notes shall not exceed the maximum rate of interest authorized by F.S. Section 215.84. Section 3. (a) The improvements hereby authorized and the purposes for the financing of which said obligations are to be issued are the construction and installation of an approximately 400-space parking structure, the acquisition of certain real property necessary for the site of the parking structure and the relocation, construction and extension of various water and sewer utility lines, together with any necessary or appurtanent improvements (collectively, the "Project"). (b) The estimated maximum amount of redevelopment revenue bonds or notes to be issued by the Agency for said purposes is $3,500,000. (c) The estimated cost of said Project is $3,500,000. An aggregate amount of approximately $500,000 for interest on said obligations, costs of issuing said obligations, engineering costs and other items of incidental expense is included in the foregoing estimate thereof. Section 4. The following additional matters are hereby determined, declared, recited and stated: (a) The said purposes described in Section 3 of this resolution are not current expenses. They are properties or improvements which the Agency may lawfully acquire or make. -4- (b) The average period of usefulness of said Project, according to the reasonable life thereof computed from the date of said bonds authorized by this resolution is within the limitations of the Florida law. Section 5. The revenue bonds and bond anticipation notes authorized by this resolution shall be direct and limited obligations of the Agency, payable solely from the funds deposited in the Agency's redevelopment trust fund in accordance with the Act or, in the case of bond anticipation notes, from the proceeds of sale of the revenue bonds in anticipation of which such notes were issued. The Agency shall not be obligated to pay the principal of or interest on the revenue bonds or notes except from the revenues held in its redevelopment trust fund for that purpose. Pursuant to the Act, the revenue bonds and notes authorized by this resolution do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction and shall not be deemed to be a debt, indebtedness or obligation of the City, the state of Florida (the "State") or any political sUbdivision thereof. Neither the faith and credit nor the taxing power of the city or the State, or any political subdivision thereof, are pledged to the payment of the principal of or interest on the revenue bonds or notes. The holders of the revenue bonds or notes authorized by this resolution shall have no right to require the imposition of any -5- tax or the establishment of any rate of taxation in order to obtain amounts necessary to pay and retire such revenue bonds or notes. Section 6. The capital budget of the Agency is hereby amended to conform with the provisions of this resolution to the extent of any inconsistency herewith. In order to assist the Agency in the financing of the costs of the Project, the ~~ Ib~a,.. t;L(~ d"'/. CA-~4J.1'~ 'l)AhA/~_~O nereby author1ze~and d1rec~~d1bWvi)el1a-rf of the City to enter into an interlocal cooperation agreement with the Agency for the establishment of a line of credit in the form thereof attached hereto as Exhibit B. The form of such interlocal cooperation agreement is hereby approved and the Mayor is hereby authorized and directed to approve such modifications, additions and deletions thereto as may, on the advice of the city attorney, be necessary or descriable. The Mayor is further authorized and directed to take all actions necessary to execute and complete such agreement. Section 7. The City Council hereby consents to the issuance of the revenue bonds or notes by the Agency and securing such revenue bonds or notes on parity with the Agency's obligations under an interlocal agreement with the City establishing a line of credit of up to $2,200,000 for the benefit of the Agency in connection with the construction of a county courthouse and related facilities, dated May 12, 1988 (the "Line -6- of Credit Agreement"). The city Council further expressly waives the requirements of Section 7(c) of the Line of Credit Agreement: provided, however, that such waiver shall be effective only with respect to (i) the revenue bonds or notes issued in respect of the Project and (ii) the interlocal cooperation agreement referred to in Section 6 hereof. Section 8. This resolution shall take effect immediately. -7- [IT' DF DELRAY BEA[H r CITY ATTORNEY'S OFFICE 310 S.E. ,,' SIRIIT SUITI4 IHLRAY BI-'ACII, 1-" LOR IDA 33483 :WSn43-7090 MEMORANDUM Date: August 16, 1988 To: City Commission From: Jeffrey S. Kurtz, Assistant City Att:orney Subject: '1'11e CRA's Public Parking Facility On the Commission's August 16, 1988 special meeting are five items relating to the CRA's public parking garage to be located adjacent to Atlantic Plaza. A parking study had been commis- sioned by t.he CRA which revealed the need for 420 parking spaces in the downtown area if the proposed Jacobson's addition t.o Atlantic Plaza takes place. The Atlantic Plaza developers wish to enter into an agreement with the City to pay the in lieu of parking fee rather than provide parking spaces because they are unable to provide parking on site for the Jacobson's addition. It is therefore contemplated that the City will receive lands and money totaling a value equal to $2,500 per space needed and that the short fall in parking in the downtown will be met through the development of a parking garage. In order to institute the development of a parking garage, five separate items, two for Commission action and three for discus- sion, will be put before the Commission on August 16. The first action is a resolution aut.horizing the CRA to acquire property on which the Harbourview Apartments are presently located. The CRA has already determined that the most appro- priate location for the parking garage is adjacent to the Atlantic Plaza site and this property is a needed acquisition in order to give enough room to put in the parking garage. The resolution authorizing the CRA to acquire the property is necessary in order to comply with statutory requirements which call for the governing body to specifically authorize the CRA t.o proceed by way of eminent domain against a parcel of property. It is anticipated that the CRA will attempt to negotiate the sale of this property, however, if that fails, they would seek the property through condemnation proceedings. The other item on the agenda which calls for Commission action is the approval of the contract between the City and the CRA for the transfer of airrights over Northeast First Street. The ~ l/ City Commission August 16, 1988 Page 2 transfer of these airrights will allow the City to construct a parking garage which transfers across Northeast First Street. Items 3 and 4 are presently on the Commission agenda for action but because certain details have not been as yet worked out they should be a discussion items for the Commission. The resolution and agreement. would provide for the City to extend a Letter of Credit in the amount of $300,000 to the CRA. The Letter of Credit is needed because it is not anticipated that the CRA's taxing revenues will be high enough to support interest payments called for by the issuance of bond anticipation notes in the amount of 3.2 million dollars. The dgreement will call for the City to waive parity requirements as to this note only. The parity requirements come from the previous issuance of credit to the CRA in the amount of 2.2 million dollars and calls for the CRA to have revenues equal t.O or exceeding 130% of debt payments prior to the occurrence of any further debt. It is not anticipated that the CRA will be able to meet that debt coverage ratio in the near fut.ure and they are asking that it be waived in any respects to this agreement. The CRA is also requesting an interest rate of 0% on their line of credit and it is my understanding that staff will recommend the interest rate be set equal to the rate on our utility tax bonds. The source of funding for the $300,000 line of credit will be from a designated general funds surplus account. If t.he Commission agrees to this concept, formal action can be taken at an upcoming regular meeting and certain details, including an opinion letter as to public purpose of the loan would be forthcoming from CRA's bond counsel, McCarter & English. The last item in reference to the parking garage is an agree- ment between the Atlantic Plaza and the City concerning in lieu of parking fees relative to the Atlantic Plaza site plan modification. It is anticipated that the Jacobson's addition to the Atlantic Plaza shopping center will require a net increase of 301 spaces to be provided. As indicated earlier in the memo, the developers of Atlantic Plaza would prefer to pay for parking spaces at a rate of $2,500 per space rather than provide the parking on site. with the acquiescence of the City Commission, such a payment in lieu of parking is contemr'J ated under our ordinances. The agreement between Atlantic Plaza and the City calls for Atlantic Plaza to transfer land and certain airrights over Atlantic Plaza to the City and receive credit in an amount equal to the appraised value of those properties towards their parking fees. The remainder of the parking fee obligation would be paid to the City over a period of 15 years. Atlantic Plaza has requested that no interest fee attached to such payments and that the payments be made over a 10 year j J w lA /~ ') 5 ~ .1 ~ ~ ,..- Jc1. 'V- ~~ ~ :::I ~\S ')l. City Commission August 16, 1988 Page 3 period beginning in year 5 through year 15. The ordinance which allows these payments to be made, typically calls for payment to be made prior to the issuance of building permits and the Commission needs to make a policy decision as to whether they wi II accept. the note and lands as full payment and whether any interest should be charged on the note. In addi- ti.on to the above provisions, Atlantic Plaza has requested that a forgiveness provision be inserted in the note such that if a future City Commission eliminated the parking requirements in the downtown area or reduced the fee, the balance of Atlantic Plaza's obligation at the time of that ordinance change will be forgiven entirely or reduced proportionately. If the Commission should have any questions concerning this matter, please do not hesitate to contact our office. JSK:sh cc: Walter O. Barry, City Manager David M. HUddleston, Director of Finance Frank Spence, Development Service Director David Kovacs, Planning & Zoning Director MEMORANDUM TO: MAYOR AND CITY COMMISSION THRU: ~R O. BA~~ CITY MANAGER :_~ t? - &. FRANK R. SPENC - INTERIM DIRECTOR DEVELOPMENT SERVICES FROM: SUBJECT: LINTON AVENUE BEAUTIFICATION PROJECT - NO BIDS DATE: AUGUST 16, 1988 No bids were received on 8/11/88 which was the deadline for the Linton Avenue Landscape and Irrigation Project, even though seven (7) contractors picked up plans and specifications. All seven were contacted to determine why they did not bid. All said they could not bid because of the requirement for Bid Bond and a Performance Bond. Purchasing Director, Ted Glas' background memo is attached for further detail. It appears from a cursory review of the law that any project over $200,000 must be bonded. The legal question is can the City Commission waive the requirement? A secondary problem has arisen which ironically can provide a partial solution to the bonding requirement, and that is that the irrigation contractors have complained that landscaping contractors cannot bid on irrigation. Therefore, these separate functions should be and need to be bid separately. By doing this and revising the scope of the project downward, staff believes the total project estimate to be $165,000 for landscaping and $50,000 for irrigation and electrical, thus eliminating the need for the bonding requirement. This is down from the original cost estimate of $300,000. Recommendation Authorize staff to revise the scope of this project and to rebid the landscaping and irrigation/electrical segments separately. FRS:DQ Attachment A:Beautify.CC MEMORANDUM To: Robert A. Barcinski- Asst. City Manager/Management Services From: Ted Glas- Purchasing Director Date: August 12, 1988 Subject: No Bids on Linton Avenue Beautification Project Invitations to Bid were mailed to twenty-five (25) area Landscape & Irrigation contractors on 7/20/88. A legal advertisement was placed in the Palm Beach Post on 7/22/88. A pre-bid conference was held on 7/28/88, at, which time only two contractors were present. Seven (7) interested contractors picked-up plans and specifications from Purchasing. No bids were submitted for the 8/11/88 bid opening. Purchasing contacted the seven contractors to determine why they did not bid, as follows: a) All five Landscaping contractors stated they would not bid because of the bonding requirements (Bid Bond & Performance Bond). b) Two Landscaping contractors stated the time frame was too tight. c) The two Irrigation contractors did not want to bid as a sub-contractor through the Lanscape contractor, but would if they could bid their irrigation work as a separate project. Recommendation: If it's legally permissible, the bonding requirements need to be eliminated so that Landscaping contractors will bid. Also, the bid can be restructured to allow separate bids for the Landscaping work and the Irrigation work, with the City awarding separate contracts for each. :lid ~ Ted Glas Purchasing Director pc: Frank Spence Lula Butler Nancy Davila Jeff Kurtz CITY OF DELRAY BEACH, FLORIDA WORKSHOP MEETING - CITY COMMISSION August 16, 1988 7:00 P.M. AGENDA Commission Chambers Please be advised that if a person decides to appeal any decision made by the City Commission with respect to any matter considered at this meeting or hearing, such persons will need a record of these proceedings, and for this purpose such persons 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. The City does not provide or prepare such record. ' 1. Atlantic Avenue, West of Swinton. .