Loading...
06-20-89SpMtg JUNE 20, 1989 A Special Meeting of the City Commission of the City of Delray Beach, Florida, was called to order by Mayor Doak S. Campbell in the Commission Chambers at City Hall at 7:15 P.M., Tuesday, June 20, 1989. Roll call showed: Present - Commissioner William Andrews Commissioner Patricia Brainerd Commissioner Mary McCarty Mayor Doak S. Campbell Absent - Commissioner Jimmy Weatherspoon Also present were - City Manager Walter O. Barry and City Attorney Herbert W.A. Thiele. Mayor Campbell called the meeting to order and announced that this meeting has been called for the purpose of considering: (1) Auburn Trace Final Plat and revised Site Plan approval; (2) Downtown Develop- ment Authority's Request to lease parking lots; and (3) Consideration of joint venture proposal for the acquisition of Layer's Tennis Center. 1. David Kovacs, Planning Director, reported the final plat in this situation represents the description of the outer perimeter of all the properties which are going to come at some time during this process into the ownership of Auburn Trace Joint Venture; then they are dedicat- ing Auburn Avenue as it goes through their property and through the Housing Authority property. He advised they are then creating another tract for a lift station, two water management parcels and two develop- ment parcels, one for the day care center and one being for the balance of the property. The Joint Venture is not yet the owner of all the property so the plat cannot be approved and executed at this time. Mr. Kovacs stated he would recommend that the Commission take an action to approve the final plat as being the document transmitted to the City on June 19, 1989, with the condition that it not be executed by the Mayor until proof of ownership of all the components and being owned by Auburn Trace Joint Venture is provided. Mr. Kovacs stated there are two waivers to be granted associat- ed with the plat action: (1) waive the sidewalks on the west side of Auburn Avenue from 12th down through 8th Street and (2) allow the guard house to be located on the raw water main easement subject to three conditions which are: that there is a hold harmless agreement for liability for individuals and damage to structures in favor of the City, that the building is not located over the water main itself and that the foundation of the guard house be designed upon a berm approved by the Chief Building Inspector. Ms. McCarty moved to grant the waivers as outlined, seconded by Ms. Brainerd. Upon roll call the Commission voted as follows: Mr. Andrews - Yes; Ms. Brainerd - Yes; Ms. McCarty - Yes; Mayor Campbell - Yes. Said motion passed with a 4 to 0 vote. Mr. Kovacs advised the final plat time is when determinations are made for the financing of public improvements. They are recommend- ing not to require a bond and that, instead, the City will be made a party to the agreements that Joint Venture has with other contractors, in the event they step out for some reason and the City ends up taking over the project. This has been worked out by the City Attorney's Office. The other aspect of the improvements is that during earlier discussion on the project there were statements that the City would provide up to $200,000 for off site improvements. Joint Venture went back to the contract language and discovered that the paragraph that deals with the $200,000 says that the City will contribute up to $200,000 for on site and off site improvements dealing with roadways, drainage, sewers and utilities; in its broadest context it would mean the City would put $200,000 toward the project as the improvements will definitely cost more than that. Assistant City Attorney Kurtz added that contractually the City is obligated to go the $200,000. 5~. Kovacs stated he would suggest the Commission approve the site plan subject to the following: (1) there be a revised site plan that fully demonstrates the meeting of the City's codes and it be on a site plan that is scalable and be submitted for review and checked prior to September 1st. What they need is one plan which would be one that resolves problems and difficulties. Also, with shifting around with some new specific field date information some of the buildings begin to encroach into setback requirements, which means the buildings need to be moved again and a new set of computations done for distance between buildings. It is his recommendation in order to keep the project moving that the Commission not make it a condition of the building permits; they will just note on the permits that the building locations are subject to further revisions. The second condition is that all the items heretofore listed in the P&Z Board documentation as conditions of approval apply unless there is a specific waiver. Mayor Campbell asked if the applicant had any problem with any of the conditions that are being incorporated in the approval this evening. Jay Feldner, representing Joint Venture, stated they had no problem, with the exception of one item which they have asked for some type of relief. This was in regard to the Police Department request for an electronically controlled gate of such magnitude that it would be a tremendous hardship; they have yet to work out the details between the Fire and Police Department. Mr. Kovacs explained that since they were facing a situation whereby you could not see into the project and that there were no proposals for internal security, the police patrol needed a way to access the site other than come down Auburn Avenue to the main entry. It is about a $5,000 system; Mr. Feldner doesn't feel it is necessary and the Police Department feels it is. Mr. Andrews questioned the location of the picnic area; he suggested relocating this as near to an open area as possible as opposed to where it is located up against a unit. He also had a concern with the mail pickup where they have everyone coming to get their mail at one location as opposed to having standup mailboxes throughout the complex. Richard Brautigan, architect for the project, advised that originally they had the boxes located throughout the site; Engineering, at the request of the Post Office, chose to locate these at a central location. Mr. Kovacs commented that he had objected to this, feeling that there should be at least two locations in order to split the traffic. It was the consensus to move the mailboxes to several locations. Mr. Andrews also mentioned the handicap parking spaces which seem to be ganged and not located equally throughout the site and he would like these changed. Ms. Brainerd moved for approval of the Site Plan, with the conditions as outlined by Mr. Kovacs about having a final document that concords with everything they have discussed and submitted by September 1st, seconded by Ms. McCarty. Upon roll call the Commission voted as follows: Mr. Andrews - Yes; Ms. Brainerd - Yes; Ms. McCarty - Yes; Mayor Campbell - Yes. Said motion passed with a 4 to 0 vote. Before roll call the following discussion was had: Mayor Campbell asked if they would be reviewing and voting on a management agreement at a later time. Assistant City Attorney Kurtz stated they will have that authority. Mayor Campbell stated he has a concern with when the rules and regulations become binding and in effect. The Assistant City Attorney commented that it will be ongoing, pursuant to the terms of the note and mortgage; whenever they want to switch management the Commission will have the opportunity to review the agreement. Mr. Feldner advised that part of what was submitted and entered into is an extensive management plan; the document is with staff and they will be happy to meet with the Commission at any time to discuss anything they wish. Mayor Campbell reiterated his question as to when they can affix the responsibility of the rules and regulations so that it cannot be denied later. Assistant City Attorney Kurtz advised that if they want a formal vote on it it can be done next -2- 6/20/89 Tuesday; they will have the right on a continuing basis, as long as the City is involved in this project and are owed money, to have review over those things so that if they have to be changed or the Commission sees that they are not being upheld in the fashion that was originally approved, they can go back to them. The City Manager commented he felt this should be part of the September 1st submittal and made a part of the final understandings. At this point the roll was called to the motion. Ms. McCarty moved for approval of the final plat, seconded by Ms. Brainerd. Upon roll call the Commission voted as follows: Mr. Andrews - Yes; Ms. Brainerd - Yes; Ms. McCarty - Yes; Mayor Campbell - Yes. Said motion passed with a 4 to 0 vote. 2. The City Manager reported that the DDA has asked to have this item removed from the agenda as they are not ready to go forward. 3. The City Manager reported the Commission has been furnished a joint venture proposal, with some slight modification language, which is legally separable from each element and contingent upon the other being simultaneously approved; this would be submitted to the FSLIC regarding the Laver's Tennis Center. The City Manager referenced a letter to Frank Tucker of FSLIC from the President of Greater Southeast, Inc., which summarized the elements of the two bids from the City of Delray Beach and Greater Southeast Inc. A1 DeCuir, representing Greater Southeast Bank, reported their selling a south Laver's portion to the condominium group has not been finalized, although they have been in discussion for over a week but have not settled on price as yet. The two proposals which would be submitted simultaneously represent 100% of the entire properties under FSLIC's control. The City Manager clarified that the City would be buying 12 hard surface courts, the sales pavilion (described as three pods) parking lot and the land between the parking lot and the lake sufficient for 16 clay courts, and partial interest in the maintenance building to be allocated in a separate agreement between the City, Greater Southeast and the condo association. They would be paying $650,000 for that interest, $200,000 upon closing and $450,000 within one year or upon foreclosure, whichever occurs first. The City would have the right and some protection to build the 16 clay courts immedi- ately. Mr. DeCuir stated Greater Southeast would enter into a side agreement with the City to support their building the 16 clay courts, supporting that financially up to $250,000. He added that the remaining issues, as he understands them, are the design decision as to the access from Miller Field (they would aid in that access from the extension of 4th Avenue) and the remaining issues with the condo association based on price and certain management aspects. Upon question by Mayor Campbell as to what benefit Greater Southeast receives for the $250,000 and helping with the entrance, Mr. DeCuir advised the whole process has been a compromise between the three parties to extract the properties from FSLIC's control. Southeast gains a private equity membership club which they would benefit with and a public facility which they can then sell condos based upon the fact that they have their choice. He stated they felt the key issue as to value at Laver's is an image and a spirit of cooperation that has not been there for four years. Discussion followed with Mr. DeCuir. Upon question by Mayor Campbell, the City Manager stated the City's bid, if they were to go forward, may undercut the bid in total or at least partially with what is being proposed here. The immediate impact of such a bid to FSLIC at the original number would be much higher than had been proposed previously by the condo association, for example, and would draw immediate litigation, most of which the City Attorney feels comfortable in the City's ability to defend, but which would draw out the process considerably. Ms. McCarty stated she felt that before they could buy in at any price they need to get some sort of broken out appraisal on the -3- 6/20/89 property; also, in the spirit of harmony with the condo association, for them to visualize what this is going to look like with some sort of a site plan and layout, especially with regard to access and barrier issues. She would again be interested in the legal aspects with rela- tion to what the City Attorney has mentioned. Ms. McCarty commented on the ability to sell the current tennis court property as she understands there needs to be some more investigation to get clear title to this property. The City Attorney stated they have some legal work to do, which is doable. It could be as long as a year but he would guesstimate that it is more like three to six months. Upon question by Mr. Andrews, the City Attorney advised the entire package was valued, as he recalls, at 2.4 million dollars (their appraisal) for the total amenities package. Mr. Andrews stated based on this he did not believe that the City is getting its fair share. He believed the $250,000 is for working out a ratio of amenities to the buildable area and the number of units they want to get on the property. Another thing he is having a problem with is a three party agreement; contrary to what he has read in the newspaper, he still believes the City can negotiate in good faith and come up with something that is more than fair with the existing property owners. The City Manager advised that this action is not a three way bid nor is it an offer to buy; what it is is the Commission's decision to jointly submit bids to FSLIC as outlined and for FSLIC to react that they would be receptive to something like this. This does not preclude the City going forward with the original bid at some future date. Upon question, the City Attorney stated he would like to work on the language in the letter before the City executes a document; there are some suggestions that the Commission has made that ought to be incorporated more clearly in the nature of escape type language. Also, specify that during the 60 days waiting period it is specifically subject to verification of value and some other things. He would also want to know if the submission of this joint bid precludes the City, while it is pending, from submitting any other bid; he has questions on a number of other things also. Mr. DeCuir stated they have suggested as a discussion item that the City submit both bids; FSLIC will review both and submit the prefer- ential one. Ms. Brainerd stated she would also like the property looked at by a professional tennis property management organization and she would like an opinion particularly as to the marketability of it as a public facility and also the impact on the residential neighborhood as pertains to quality of life. She advised she is interested in pursuing this but only if the City pursues it solely, feeling they have a much better chance of success if it is done singly. Mayor Campbell stated he doesn't see why the Commission cannot evaluate its needs and make an offer, directly and independently, and proceed. The primary focus should be what is the need of the City, how much money do they have, can it be located in a certain place and make an offer. He did not feel the exact need has been identified and he is not in favor of getting into any complex development business. Discus- sion followed. Daniel Rosenbaum, attorney for the condo association, advised FSLIC is not the owner of the property. The involvement the City would have with FSLIC is simply buying their litigation position subject to whatever defenses exist, whatever prior encumbrances exist, subject to whatever can happen in foreclosure proceedings. There are also a lot of legal problems that accompany this such as lowering of property values and it may require the condo association to take steps to deal with the traffic impact. He felt the City would be much better off with another piece of property and building their own tennis center. Jay Slavin, Rainberry Bay, questioned whether the people moving into the new condo development will be given a choice of joining a private club to play tennis or joining a public club which the City would be building; she could not see the benefit to these new people. -4- 6/20/89 Also, if the other residents of Laver's choose to join the public club the other City residents will be crowded out, especially during the winter months. She stated she is very confused as to how this is all going to be worked out. Morton Pechter, resident of Laver's, stated they paid a sub- stantial price for their apartment based on its amenities as a first class tennis complex. It is not their fault that Laver's has become a financial headache; however, it was never meant to be a public tennis complex for the City but rather a private, quality condo community. He urged that the Commission not go ahead with the purchase of the proper- ty. Ed Bolter, member of Board of Directors at the Delray Tennis Center, asked that the Commission consider the number of tennis players that use that facility. They find it intolerable to be continually promised a facility and would like to see something happen in the neat future, whatever path they choose. Vi Hinchcliffe, Delray Beach, stated that if the residents of Laver's and the City cannot get together and improve what they have now, rather than see the City fight back and forth for a year or invest the City's money for a developer who wants more condos, she believed the City ought to go back to Lake Ida Park and build a tennis center. Ms. Brainerd moved that the City submit its own offer to go it alone at two million dollars, simultaneously seek a new appraisal if the one that FSLIC has does not meet with the City Attorney's concerns, retain the services of a professional tennis manager and go forward. The motion FAILED for lack of a second. Ms. McCarty commented that she is concerned with the amount of staff time and priority that this project has taken over the past three weeks and concerned with the time that it is going to take in the next few weeks and months. She is also concerned with the bond issue this fall and the ramifications thereof; they need to be sure of what they are doing. She would like to go back to square one and start over, looking at the current facility and see if it is marketable. Ms. McCarty moved to deny the proposal and go back to the original facility and rethink all the alternatives. The motion FAILED for lack of a second. Mr. Andrews stated he believed they ought to continue discus- sions, relative to purchasing the center, with the owners and residents there; keep working on the two million dollar offer, and let the tennis pro and the Recreation Department keep working on their plans. Mayor Campbell commented that this is a complex decision. He suggested putting this item on a Special Workshop Meeting coming up to review all of these considerations when Mr. Weatherspoon can attend. With all of them present to participate in the discussion, at least they may be able to get a consensus of direction, narrow the direction, and then they could proceed. They would only have staff and informational input. The Commission concurred. Mayor Campbell declared the meeting adjourned at 8:55 P.M. - -City Clerk ATTEST: M A Y O R -5- 6/20/89 The undersigned is the City Clerk of the City of Delray Beach and that the information provided herein is the minutes of the meeting of said City Commission of June 20, 1989, which minutes were formally approved and adopted by the City Commission on~~ i~,../~ .~ City ~lerk ~ 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. -6- 6/20/89