05-15-92SpMtg MAY 15, 1992
A Special Meeting of the City Commission of the City of Delray
Beach, Florida, was called to order by Vice-Mayor Jay Alperin in the
City Manager's Conference Room at City Hall at 3:05 P.M., Friday, May
15, 1992.
Roll call showed:
Present - Vice-Mayor Jay Alperin
Commissioner William Andrews
Commissioner David Randolph
Absent - Commissioner Armand Mouw Mayor Thomas E. Lynch
Also present were - City Manager David T. Harden and City Attorney Jeffrey S. Kurtz
Vice-Mayor Alperin called the meeting to order and announced
that this meeting has been called for the purpose of considering the
following:
2. Approval of Change Order No. 1. The Commission is to consider
Change Order No. 1 to the contract with Elkins Constructors, Inc. in the
amount of $92,316.77 to rebuild three (3) variable speed EIMCO drives
for the clarifier tanks at the Water Treatment Plant, sandblast and
paint the inside of the tank walls and miscellaneous maintenance welding
of steel catwalks on top of the clarifier tank with funding from 1991
Water and Sewer Revenue Bond - Lime Softening Conversion (Account No.
447-5164-536-60.31).
Mr. Randolph moved for approval of Change Order No. 1, seconded
by Mr. Andrews. Upon roll call the Commission voted as follows: Mr.
Andrews - Yes; Mr. Randolph - Yes; Vice-Mayor Alperin - Yes. Said
motion passed with a 3 to 0 vote.
At this point the meeting became a Joint Session with the
Delray Beach Community Redevelopment Agency.
Roll call showed:
City Commission
Present: Vice-Mayor Jay Alperin
Commissioner William Andrews
Commission David Randolph
Absent: Commissioner Armand Mouw
Mayor Thomas E. Lynch
Also present were - City Manager, David T. Harden and City Attorney Jeffrey S. Kurtz
Delray Beach Community Redevelopment Agency
Present: Kevin Egan, Chairman
Wanda Gadson
Kathi Sumrall
Ed Zuraw
Absent: Matt Gracey, Jr.
Leonard Mitchell
Clay Wideman
Also present were - Chris Brown, Executive Director and Robert Federspiel, Attorney
Vice-Mayor Alperin stated this meeting has been called for the
purpose of considering the following:
1. Purchase of Ocean City Lumber Property.
Mr. Andrews stated the main purpose is to attract the public to
shop on N.Wo 2nd Avenue, as well as on Atlantic Avenue. He feels if
there is no appropriate fronting of businesses at Atlantic and 2nd
Avenues, people will not be enticed to continue to move forward in that
area. He feels the Ocean City Lumber property is a critical site. The
Pineapple Grove seed money that was originally sold to the public in the
Bond Issue was to help this particular area and not to be used for
infrastructure.
Upon question by Vice-Mayor Alperin regarding the use of the
Pineapple Grove money, the City Attorney stated the City could either
grant or loan the CRA the money for this express purpose or some other
purpose that this encompasses. Mr. Andrews commented that it would be a
non-interest loan because this Bond Issue was approved by the taxpayers
and they are paying the interest. Upon question by Mr. Randolph regard-
ing the amount of the loan, Mr. Andrews stated he feels it should be no
more than the appraised value.
Chris Brown, Executive Director of CRA, stated there could be a
tremendous parking problem, depending on what a developer would propose
for the site, as a parking problem already exists at Old School Square.
Upon reselling the property, the CRA would then take the $500,000 and
immediately put it into Pierce Tire Company. Vice-Mayor Alperin stated
he would like the City to have enough control to ensure that the money
stays in the Pineapple Grove area.
The City Attorney advised that can be done in one of two ways;
1) the money can be specifically allocated for a loan for this project
until such time as a sale is made on the land. If funds are to be
returned to the CRA, it will be necessary for them to repay the loan at
that time; or, 2) the Commission can give the CRA a further grant of
authority now, requiring that the monies be used for redevelopment
purposes within the Pineapple Grove area. Once it is jointly determined
by the CRA and the Commission that the Pineapple Grove area is to be
redeveloped, the City would expect a return of their loan.
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Robert Federspiel, Attorney for the CRA, questioned if the loan
could be like a restricted grant, stating the CRA shall reinvest any
proceeds received from the sale of that property in the Pineapple Grove
area and only trace it one time. He expressed concern with regard to
continually tracing the money for an indeterminate period.
The City Attorney stated he feels the question is whether or
not the City Commission wants to have control or input beyond this first
purchase. Upon question if each parcel purchase would need to be
approved by the Commission, the City Attorney advised that would not
necessarily be a must. The CRA can put the parcels into their plan and
not immediately acquire them, so there is no guarantee that the monies
will not get invested someplace other than Pineapple Grove. The CRA
currently has other ongoing projects that this funding could be used
for. This is a potential the Commission should be aware of and make a
decision on. Discussion followed.
David Kovacs, Planning Director, requested, for the record,
that the term Old School Square Area money be used, as opposed to
Pineapple Grove, because that is the way it is described in the Decade
of Excellence Bond Issue.
Chris Brown stated, basically, the CRA would like the entire
$500,000, with a $400,000 cap for purchase of the easterly Ocean City
property and the remainder for the quonset hut across the street on the
west side of 2nd Avenue, which is appraised at $92,000.
Mr. Federspiel advised that the CRA will place a bid of $10,000
on the contents, using CRA funds, which will be used for future rehab
housing material or be donated to Habitat for Humanity, if necessary.
Discussion followed regarding bidders, the bidding process and at what
point it should be halted.
The City Attorney advised that Resolution No. 54-92 should be
voted on prior to making a motion concerning the grant.
The City Manager presented Resolution No. 54-92:
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY
BEACH, FLORIDA, AUTHORIZING THE ACQUISITION OF CERTAIN
REAL PROPERTY AS HEREINAFTER DESCRIBED BY THE DELRAY
BEACH COMMUNITY REDEVELOPMENT AGENCY BY PURCHASE; PROVID-
ING FURTHER, THAT THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH FINDS THAT THE CERTAIN REAL PROPERTY EXISTS
IN A BLIGHTED AREA AND THE REHABILITATION, CONSERVATION,
OR REDEVELOPMENT, OR COMBINATION THEREOF OF SUCH AREAS IS
NECESSARY IN THE INTEREST OF THE PUBLIC HEALTH, SAFETY,
AND WELFARE OF THE RESIDENTS OF THE CITY OF DELRAY BEACH;
PROVIDING AN EFFECTIVE DATE.
(Copy of Resolution No. 54-92 is on file in the official
Resolution Book)
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Mr. Andrews moved for the adoption of Resolution No. 54-92,
seconded by Mr. Randolph. Upon roll call the Commission voted as
follows: Mr. Andrews - Yes; Mr. Randolph - Yes; Vice-Mayor Alperin -
Yes. Said motion passed with a 3 to 0 vote.
Mr. Andrews moved to grant the CRA up to $500,000 of the Decade
of Excellence Bond money, earmarked for the Old School Square Redevelop-
ment area, for actual purchase and closing costs of the properties
defined in Resolution Nos. 54-92 and 51-92; and, authorizing the CRA to
dispose of those properties, if acquired, in a manner they see fit, in
accordance with their CRA plan and the City's Comprehensive Plan; and,
at the time of disposal, if there are funds remaining, those funds will
be returned to the City for further use in the Old School Square/Pine-
apple Grove area, seconded by Mr. Randolph. Upon roll call the Commis-
sion voted as follows: Mr. Randolph - Yes; Vice-Mayor Alperin - Yes;
Mr. Andrews - Yes. Said motion passed with a 3 to 0 vote.
Kathi Sumrall moved to adopt Resolution No. 92-6, a CRA Resolu-
tion, for the acquisition of the same property located at 22 Railroad
Avenue by authorizing a bid at the RTC auction in an amount for the Real
property of up to $400,000 and for the inventory of up to $10,000,
seconded by Wanda Gadson. The motion passed with a vote of 4 to 0.
The City Attorney recommended that, before the meeting is
adjourned, the Commission authorize him to work with the CRA attorney,
Robert Federspiel, to develop a writing that reflects the grant that was
just authorized.
Mr. Randolph moved to authorize the City Attorney to work with
the CRA attorney, as recommended, seconded by Mr. Andrews. Upon roll
call the Commission voted as follows: Vice-Mayor Alperin - Yes; Mr.
Randolph - Yes; Mr. Andrews - Yes. Said motion passed with a 3 to 0
vote.
Vice-Mayor Alperin declared the meeting adjourned at 3:55 P.M.
- J CitY ~//Clerk ~
ATTE S T:
The undersigned is the City Clerk of the City of Delray Beach
and that the information provided herein is the minutes of the meeting
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of said City Commission of May 15, 1992, which minutes were formally
approved and adopted by the City Commission on ~/~/, ,~, /~ .
· :~ityV Cl~rk ~
NOTE TO READER:
If the minutes that you have received are not completed as indicated
above, then this means that these are not the official minutes of City
Commission. They will become the official minutes only after they have
been reviewed and approved which may involve some amendments, additions,
or deletions to the minutes as set forth above.
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