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08-02-88SpMtg164 aUGUST 2, 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 8:00 P.M., Tuesday, August 2, 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 Assistant City Attorney Jeffrey Kurtz. Mayor Campbell called the meeting to order and announced that this meeting has been called for the purpose of (1) Considering update as to the status of the Auburn Trace Housing Development and the C%ty's UDAG Grant Award (Commission direction on these items will be sought). 1. Mayor Campbell made reference to Assistant City Attorney Kurtz's memorandum of July 29, 1988, and stated that it might be appro- priate to discuss several points this evening. The Commission turned down the zoning request as presented last Tuesday; they might want to hear the Assistant City Attorney's opinion as to where the City stands legally regarding the contract and the 'grant with Procacci Development. Also, where does the Commission want to go now with a project and clearly set forth any parameters as to the nature of the project, the number of units, zoning, and how this might reflect with the ability to comply with the apparent request from the School Board regarding the increase of school children in that area. Assistant City Attorney Kurtz reported there is a grant from HUD which totals about five million dollars which is available if we build 368 units; if we build less than that the City will have to get a modification and there will be less money forthcoming in all likelihood. He stated the first question for discussion is whether the City still wants to pursue a housing development on that partigular piece of property with the City being actively involved in some fashion or another; also, what is the appropriate zoning classification for that parcel. Upon question by Mr. Weatherspoon, the Assistant City Attorney advised that the City has not received an extension that the City requested from HUD; the HUD staff has indicated that they would not process those applications knowing there are more potential modifica- tions out there. They want a time frame within which they know the City will be getting them the various modifications and what the subject matter would be before they would consider the first two extensions. We basically have until September 6th under the present agreement before they would consider us to be in breach. Upon question by Ms. McCarty, the Assistant City Attorney stated the grant agreement is from HUD to the City, the party who would get their five million dollars. A City may request a modification of who the developer is. Mr. Procacci has, through his attorney, asserted they have certain rights under that agreement. Discussion followed with regard to whether or not the Commis- sion wished to pursue housing on this property. Mayor Campbell stated his own commitment is that the City should have a housing project there in connection with the Community Redevelopment Plan for relocation of people for rather ambitious projects planned elsewhere in the City; he believed it was the feeling of the Commission that they were not going to aggravate the situation with regard to the desegregation of our 165 schools, but that every child who would live in the new development is already here and we are not adding to the situation. Ms. McCarty stated she would also like to see housing on that property but with a density lower than previously discussed; she believed there should be a retired or elderly element to this and this would also lessen the impact of the school situation. Ms. Horenburger concurred, stating that with the kind of planned project proposed there are one bedroom units planned and this would only allow a certain number of people to live there and would not accommodate a family, thereby eliminating the problem of increasing the school boundary. With the reduction in density she would be very much in favor of that rather than having that property developed in an unplanned fashion. Mr. Weatherspoon advised he is certainly in favor of continuing the project at this location; he did share the concerns regarding the density but after visiting some other locations, the question of density, in his opinion, is a moot issue. The question of the School Board concern, in his opinion, is also a moot issue so he has no problem with proceeding with the project. Mayor Campbell clarified with the Assistant City Attorney that it would be legal to limit the people in the project on a first priority basis to City residents and in line with the ability to get the UDAG Grant. With regard to the density, the Assistant City Attorney advised that currently there are 13 acres of the 38 that are zoned for up to 10 units per acre and he believed the other 25 are single family. He asked for Commission direction on the density issue so they could begin City initiated rezoning on that land. Mayor Campbell stated he would not want to go above 7 units per acre. Mr. Weatherspoon stated they have had other projects come forth which have failed because of financing; 7 units sounds good from a practical standpoint but we have to look at whether it will be financially viable. Mayor Campbell clarified that the general consensus of the Commission is that they would entertain and would like to try a housing project; the majority would like to see a development of 7 units per acre. They would direct staff to zone the property accordingly. Phil Procacci stated he is trying to put together a quality housing development; he is proposing that they lower the density to 250 units. The Commission's rejection of the zoning of the Auburn Trace property and suggesting that the density be reduced to 7 units or less, has effectively reduced the potential income by an amount in excess of $500,000 per year without proportionately reducing the cost of the development. The' original amenity package is now financially infeasi- ble. Mr. Procacci advised that he has had numerous conversations with George Steele, Managing Partner of the Palm Beach County Housing Part- nership and they have agreed, in concept, to.enter into a joint venture for the purpose of developing Auburn Trace, providing he has the full support of the Commission. George steele gave a brief overview of the organization, the partnership and the people involved, enumerating the 24 members of the Board of' Directors. He stated that a private, public partnership such as this is essential if they are to get the job of providing critically needed affordable housing in Palm Beach County done. Mr. Steele advised they have six suggested parameters that Procacci and the Housing Partner- ship have agreed upon: (1) To become joint venture participants in the proposed Auburn Trace project; (2) The Partnership believes Procacci is acting in good faith and will make every effort to conclude a joint venture agreement; (3) The revised development plan will propose no more than 250 unit~ on th~ 38 ~cze ~i'te; (4) The joint venture reserves the right to resubmit a final proposal as to how the net proceeds of the project will be distributed; however, in no event will the return of the City's cash contribution be afforded a lesser priority; (5) All docu- ments between the Partnership and Procacci will be available to the City; the total financial structure of the joint venture development will be submitted to the City when it is finalized; and (6) Concurrent with the completion of the new financing plan, the new joint venture will submit a comprehensive proposal for the rehabilitation and manage- ment of Carver Estates which they feel is essential to the financial viability of the proposed new development. -2- 8/2/88 166 Upon question by Ms. Horenburger as to child care facilities, Mr. Steele advised they are concerned with the human, personal quality of life aspects which encompass, not only child care, but education, health care and the delivery of social services; they plan to hold as a high priority those aspects to ensure that this is a viable community. Mr. Weatherspoon stated that his concern is since the proposed project has been cut by 100 units and the revenue reduced by about $500,000, he believed that in order to make this a viable project, the amenities would be first thing to get cut out. He felt that if the amenities are cut, the project would be doomed to failure. With regard to Carver Estates, he is concerned that the rehabilitation by a private enterprise will cause the rents to escalate. Mr. Steele stated that they are aware of the feeling and sensitivity level of Carver Estates; however, they are also aware of the growing concern of the residents of this community about such amenities as the security factor. Hopefully, the Partnership will not approach this as a private developer but as a non profit entity to sit down with management, the Housing Authority and residents and explore how they may assist in putting the projects together. Mr. Steele stated they have also had conversation with the School Board; bringing in Carver Estates with the same amenity package, specifically security, may change the face and may not impact as a total Black community because they want a mixed income and racially mixed development. They would like the opportunity to explore this. Also, they are exceedingly interested in the elderly population. Mayor Campbell asked if it is the Commission's feeling that rather than to begin completely fresh at this time, that they do allow Mr. Procacci and the Housing Partnership to formulate their plans a bit more in detail and present them to the Commission as soon as possible. In the meantime, the Commission may wish to contact them with any questions relative to the nature of the housing, implementation, etc. He stated the Housing Partnership could get with Lula Butler, the City Manager and the Chairman and members of the Housing Authority. The Commission does want to indicate that they wish a dialogue~ as soon as possible to proceed. L~onar.d Syrop, member of the Housing Authority, advised that the contract between the City and the Housing Authority for the 20 acres was supposed to be signed yesterday with a deposit; as it stands now the contract is void. The Housing Authority would not be uncooperative, but they do expect some consideration from the City administration. Mayor Campbell apologized for the Commission. Assistant City Attorney Kurtz advised the Mayor executed the contract more than a week ago; there has not been a meeting at which he could have addressed the Commission regarding an extension. The Housing Authority gave the direction that we were to discuss the matter and make our communication through their attorney, Mr. Federspiel. Assistant City Attorney Kurtz clarified the consensus of the Commission is that the City wants to be involved in the project at 7 units per acre and staff will begin to initiate a rezoning for that entire parcel. The City still wants to go forward with acquiring the entire parcel, including the 20 acres from the ~ousing Authority. Also, the City is to consider Mr. Procacci's new proposal, rather than going out with another RFP on the site, for the next 10 days. This may not actually come up to a vote until August 23rd. Ms. Horenburger moved to rescind the prior authorization to enter into the contract previously developed with Mr. Procacci, seconded by Ms. McCarty. Upon roll call the Commission voted as follows: Ms. Brainerd - Yes; Ms. Horenburger ~ Yes; Ms. McCarty - Yes; Mr. Weatherspoon - No; Mayor Campbell - Yes. Said motion passed with a 4 to 1 vote. Mayor Campbell declared the meeting adjourned at 8:50 P.M. -3- 8/2/88 167 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 August 2, 1988, which minutes were formally approved and adopted by the City Commission on~f~.~./~f~ . 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- 8/2/88