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09-22-88256 SEPTEMBER 22, 1988 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 7:00 P.M., Thursday, September 22, 1988. Roll call showed: Present - Commissioner Patricia Brainerd Commissioner Marie Horenburger Commissioner Mary McCarty Commissioner Jimmy Weatherspoon Mayor Doak S. Campbell ~ Absent -. None 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) Prdpos- al from Procacci Development Corporation - Auburn Trace; (2) bid Award - Beautification Project Linton Boulevard - Landscaping and Irrigation from Military Trail to Congress Avenue; and (3) Approval of Agreement for temporary use of the Mall Common Area at Town Center Mall, Boca Raton, for October 3, 1988, Job Fair. Leonard Syrop, Delray Beach, thanked the Commission and the administration for changing the meeting date from Tuesday to Thursday in consideration of the Jewish community. 1. Mayor Campbell reported they received two memos from staff through the City Manager's Office regarding the Auburn Trace proposal which the Commission has reviewed. Robert Federspiel, Attorney for the Delray Beach Housing Authority, advised the Authority wished to thank the Commission for taking the burden of attempting to develop this project over the long period it has taken. They are concerned, however, with the time frame they are faced with and whether they may lose the'UDAG Grant; they voted unanimously at their last meeting to approve the concept that the City should look to the amenity package first and density second. He stated they would sincerely request the Commission's consideration from that standpoint and avoid the chance of losing the project and the grant. They also request that the Commission look carefully and have their advisory boards remain open to the Authority's input and others as to what the site plan may look like later. Mayor Campbell stated he would expect the Commission to work very closely with the Housing Authority. He requested that the City Manager copy the members of the Authority with all memoranda and infor- mation regarding the project, and every time this item is agendaed before the Commission, the members should be notified so that they may prepare themselves accordingly. The City Manager summarized the staff position by stating that this item has been before the Commission on numerous occasions and previously has carried a favorable staff recommendation; however, the current proposal does not. The financing package, which is a part of the most recent proposal, is of considerably less benefit to the City and, in fact, makes it uncertain at all that the City would have any guarantee payback of their local match. In addition, the ultimate UDAG payback will be less as a result of the smaller project. Based on the combination of the financial uncertainties and the diminished cash flow to the City, staff recommendation is to not favorably act on either of the proposals before the Commission this evening. It is however, the goal of both the Housing Authority, as well as the Commission, to see affordable housing in this location. 257 Upon question by Mayor Campbell, the City Manager advised that they have discussed the opportunity for others to participate; they determined that 30 days from the date of the advertisement would allow any interest that might exist in the development field to come forward and present proposals in order that additional analysis can be made of the options. ~eo.r~e Steele, representing the developer, stated they have tried to be responsive to the questions raised at the last session; they became aware of staff comments yesterday on the financial situation and the developer is prepared to make some amendments to the preSentation which the Commission has before them. They have prepared a revised site plan for 336 units and are willing to answer any questions the Commis- sion might have. Ken Simback advised the proposal they had presented was that they would share with the City 75% of the cash flow from the project; they projected those cash flows out over the 15 year life of the project and the total cash payback is in excess of 1.4 million dollars. He understands the Finance Director's concern about wanting a specific payback schedule so that the City's financial alternatives are left open; they are prepared to guarantee an annual payment of up to 75~% of that cash flow so that the City has a fixed amount coming in regardless of what the future of the project might be. ~ Upon question by Mayor Campbell, Mr. Simback stated they would guarantee $1,110,333 under the 336 units. The City Manager advised that he would not be in a position, without having the Finance Director look at the numbers and reevaluate the cash flow impact of the marginal dollars they are talking about, to come back with a response. Upon question by Mr. Weatherspoon as to why the developer was not informed earlier of staff's concern with the financial payback, the City Manager advised he believed this was a concern that has been expressed right along and they have been aware of the cash flow concerns the City has had. Mr. Simback commented that under the original propos- al for the 368 units the City's actual investment in the project would have been $1,484,000; under that scenario the City would have been fully repaid in the seventh year. Under the current proposal the City's investment is slightly less ($1,479,000); the difference is that under this scenario the City is repaid in full in the ninth year. In addition to that they will guarantee a payment schedule. Mr. Steele advised that, as the Commission knows, the major reason the partnership got involved was to do everything they could to save the UDAG. He would hope that the Commission would, particularly in view of the demonstrated willingness of the Procacci Development Corpo- ration to do everything they can to respond to the doubts in the finan- cial area, try and consider the merits of this and give a decision this evening; otherwise, he felt the preservation of the UDAG is in jeopardy as well as the ultimate opportunity for a housing project. Ms. Brainerd asked what the window of opportunity is now in order to preserve the UDAG. Lula Butler, Director of Community Improve- ment, stated she has been communicating with HUD by telephone keeping them abreast of the Commission's actions. Out of courtesy to the City, because the project has not been tabled, HUD is trying to work within our time frame. Their date certain to have the City's contract and monies obligated is at least by December 1st. Ms. Horenburger commented that the figure of what would be projected for ad valorem taxes for the City is $314,400 for 336 units. She stated the window of opportunity is getting smaller every week and is concerned about the 'grant itself. She also advised she received a call from the Facilities Planner at the School Board right before the meeting but has not been able to connect with him; she is not sure what the School Board's concerns are at this point after several meetings with Superintendent Mills and other staffers. Assistant City Attorney Kurtz commented it was his understanding that they have the same con- cerns as they have previously expressed about the 368 unit project. -2- -9-22-88 258 Ms. Brainerd moved for the passage of the Procacci Development Corporation plan to build Auburn Trace, seconded by Mr. Weatherspoon. Upon roll call the Commission voted as follows: Ms. Brainerd - No; Ms. Horenburger - No; Ms. McCarty - No; Mr. Weatherspoon - Yes; Mayor Campbell - No. Said motion FAILED with a 1 to 4 vote. (Note: Commissioner Horenburger and Mayor Campbell abstained and at the end of the meeting the City Attorney advised that with regard to the vote on the Auburn Trace issue, the minutes will have to show Commissioner Horenburger and Mayor Campbell's vote as being "No" on the record as to the motion on the floor. They cannot leave an abstention on the record under the Statutes. Ms. Horenburger stated she did not intend to vote Yes or No on this issue without some questions answered; she will not be happy that it shows No. Mayor Campbell stated that what they did, in essence, was vote against Mr. Procacci's proposal and opened it up for an RFP. He was, likewise, willing to give a few more days upon the staff's recommendation to reverse its financial statement. Upon the City Attorney's advise, the minutes will reflect a No vote for Commissioner Horenburger and Mayor Campbell). Before roll call the following discussion was had: Mayor Campbell stated he is not ready to vote in favor an~ at this point he is not sure he is in favor of voting against; he could not vote in favor until he got the assurance from at least the Finance Department to reverse their memorandum. He would also not be in favor of 336 units. Upon question by Mr. Weatherspoon with regard to the 75% clause in the financial proposal, Mr. Simback advised the only alternative is to go back to the original 368 units. Mr. Weatherspoon stated in his opinion they should be looking for things to add to the amenities package as we have a golden opportunity to be able to do what previous Commissions and the Housing Authority have been unable to do. He would support 336 units, although he believed ultimately the City should be looking at the 368 units in spite of what the School Board says about the number of children. He would certainly like to see this project the best in the State; however, he believed this would be contingent upon staff coming back with a safer position financially. Mayor Campbell asked that the City Manager get information back to the Commission with regard to Ms. Horenburger's concern with the School Board and their comments. Also from the Finance Director; in essence, have the staff look at the proposal and revoke their unfavor- able recommendation. At this point the roll was called to the motion. Ms. McCarty suggested opening this uP to see what other oppor- tunities are out there. Ms. Horenburger commented she felt the motion should be framed that the City do an RFP and the Commission should be very specific about what they want: (1) they need to make a decision whether they are going to do housing east of 1-95 and keep this grant or ditch it; (2) if they are going out for other proposals they need to be sure that they frame the RFP for what they want, i.e., a proposal that will bring the City ad valorem taxes, a proposal that meets the require- ments as far as an amenity package, pays the appraised value of the land and cuts down or eliminates the City's $200,000 off site improvements. As far as density goes, they do not have this established on the proper- ty at this point. Ms. Horenburger stated that if staff goes back over what the Commission's consensus comments have been over the past year regarding what they want to see, that would probably frame the RFP. The City Manager clarified that they would not include density issues in the RFP. Ms. McCarty moved to open this up for the developers to develop an RFP incorporating the Commission's comments and consensus for a 30 day review, and directing the City to notify HUD in writing or telephone of this 30 day notice; also, the RFP to contain at least 268 units, seconded by Ms. Brainerd. Upon roll call the Commission voted as follows: Ms. Brainerd - Yes; Ms. Horenburger - Yes; Ms. McCarty - Yes; -3- 9-22-88 259 Mr. Weatherspoon - Yes; Mayor Campbell - Yes. Said motion passed with a 5 to 0 vote. 2. The City Manager reported they have a low bid from Tuttles Nursery and Landscaping in the amount of $175,688 and McCoy Irrigation, Inc., in the amount of' $65,346 for the irrigation portion. They will have a ground breaking ceremony sometime in October which is being organized under the auspices of the Beautification Committee. Upon question by Ms. Horenburger regarding DOT, the City Attorney stated his office has heard from them but they have not re- sponded affirmatively; he has spoken with the District lawyer in Ft. Lauderdale who said that when he returns from Washington he would reevaluate his position. Ms. Brainerd moved to award the bids to Tuttles Nursery and Landscaping and McCoy Irrigation, Inc., seconded by Ms. McCarty. Upon roll call the Commission voted as follows: Ms. Brainerd - Yes; Ms. Horenburger - Yes; Ms. McCarty - Yes; Mr. Weatherspoon - Yes; Mayor Campbell - Yes. Said motion passed with a 5 to 0 vote. Before roll call the following discussion was had: ~ Upon question by Mr. Weatherspoon, the Assistant City Manager stated that they do send these bids to minority contractors and~ they have been developing a minority contractor list. At this point the roll was called to the motion. 3. Mi. Horenburger moved for approval of the Agreement for tempo- rary use of the Mall Common Area at Town Center Mall for October 3, 1988, Job Fair, seconded by Ms. Brainerd. Upon roll call the Commission voted as follows: Ms. Brainerd - Yes; Ms. Horenburger - Yes; Ms. McCarty - Yes; Mr. Weatherspoon - Yes; Mayor Campbell - Yes. Said motion passed with a 5 to 0 vote. Mayor Campbell declared the meeting adjourned at 7:50 P.M. ATTEST: 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 September 22, 1988, which minutes were formally approved and adopted by the City Commission on ~ ~, 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. -4- 9-22-88