11-03-87SpMtg NOVEMBER 3, 1987
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 7:03 P.M., Tuesday, November 3,
1987.
1. Roll call showed:
Present - Commissioner Richard J. Dougherty
Commissioner Marie Horenburger
Commissioner Mary McCarty
Commissioner Jimmy Weatherspoon
Mayor Doak S. Campbell
Absent: None
Also present were - Acting City Manager Robert A. Barcinski 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 (1) considering holding
a public hearing on the proposed sale of City property located in
Section 20, Township 46 South, Range 43 East, to Procacci Development
Corporation.
1. The Acting City Manager reported that the Commission, in their
'original packet, had a contract to purchase both the City 18 acres and
Housing Authority 20 acres in the Southwest sector of the City; the
contract also included a lot of conditions and stipulations. He noted
that additional data was furnished the Commission late his evening and
he would suggest the Commission conduct the hearing, listen to any
input, ask questions and then continue this hearing to a date certain,
possibly within the next week. He believed the Commission would need
more time to go through this additional information.
A public hearing was held having been legally advertised in
compliance with the laws of the State of Florida and the Charter of the
City of Delray Beach, Florida.
Leonard Syrop, advised he is Vice-Chairman of the Housing
Authority, however, he is not speaking on their behalf. He asked if
there have been any other developers who have put forth a proposal for
the Commission to consider. He commented that in the past, when City
property has been sold it comes back to haunt them, urged the Commission
to consider this and not give away City property quite so readily.
Bill Jacobsen, representing FPA, stated that if there is going
to be discussion by the other developer this evening, they of course,
have some additional information they would like to provide the Commis-
sion.
Thomas Hinners, Procacci Development, furnished a revision to
the proposal previously submitted to the Commission. Paragraph 5 has to
do with the payment of the 5.5 million dollar UDAG plus the 1.1 million
dollar City grant. Repayment to the City would take place, at least
with respect to the 1.1 million dollars, sooner than 15 years from now;
they would pay 25% of their cash flow, between $150,000 and $400,000 to
the City each year and 50% of their cash flow over $400,000 until they
have repaid the entire 1.1 million dollars for the land. Mr. Hinners
elaborated further on their projections in this regard.
Mr. Dougherty advised he received his information after 5:00
P.M. today and has not had the time to analyze it properly. He also
commented that he did not see how the City could enter into any type of
agreement until such time as they come to an agreement with the Housing
Authority, which as he understands it, is seeking anywhere from $700,000
to 2.5 million dollars.
Upon question, Mr. Hinners clarified that at the end of the
15th year they will pay the 5.5 million dollars, plus whatever has not
been paid of the 1.1 million; if it has not been paid, then they would
also be paying the interest on the unpaid portion.
Upon question by Mrs. Horenburger with regard to a reverter
clause relative to performance, the City Attorney advised that is one of
the issues that needs to be addressed; it is not sufficiently addressed,
in his opinion.
Mr. Jacobsen stated that he and his clients have gotten very
heavily into the cash flow analysis this past week; they hope to have
this information in the mail to the Commission in the next couple of
days. They would hope the Commission could give them a date certain by
which they all should have their projections, questions, projected
changes, etc., on the table so they can proceed with a proper presenta-
tion. He presented a list of nine items which they feel are beneficial
if the City should choose to proceed with FPA, and elaborated on each.
Frank Steinmetz, Executive Vice-President of FPA, stated the
one point he would like to make is that if the City decides at some time
to make these homes available to the people in the community the City
can make quite a bit of money for their coffers for future housing; they
are presently discussing this with their bond counsel.
Discussion followed with regard to a time for a continuance of
the hearing. Mayor Campbell suggested having this on the agenda for
next Tuesday night, if the Commission would so recommend this evening by
motion to postpone, and make every effort to have all the collected data
and information to make a good decision. Upon question by Mr. Dougherty
with regard to proper advertising, the City Attorney advised he was not
aware of any discrepancy; the ad was run twice preceding the meeting
this evening. Mayor Campbell stated, that as normal procedure, the
Commission has to have a complete packet by Friday afternoon; if the
Acting City Manager cannot get the packet to them then they will not be
able to discuss this on Tuesday night.
Upon question by Mrs. Horenburger as to where the figures came
from in the letter from the Housing Authority, Mr. Federspiel, attorney
for the Housing Authority, stated the figures proposed by Mr. Hutzler
were, in his opinion, somewhat loose; however, the sellout proposal was
$700,000. It was the board's approach that if they own 20/38ths of the
property, they would be entitled to 20/38ths of the proceeds ultimately,
which is more like 3.5 million dollars. He sees nothing out of line in
that rationale. Mr. Federspiel stated this is getting very complicated
to get both bodies coordinated, get them to go through this together and
then both participate in the supervision of this through the UDAG
program. The Housing Authority, basically, determined it would be to
their best interest to sell out the property and come up with some cash
that they could go out and serve immediate housing needs.
Upon question by Mrs. Horenburger, Mr. Federspiel stated five
acres was given to the Authority by the City and 10 acres by the County;
they purchased five acres. Mrs. Horenburger stated that the Authority
is, in fact, the City's arm that is supposed to be helping the Commis-
sion and the residents of Delray Beach to provide and create housing
where there is a need; she would hope they would work cooperatively with
the Commission in this effort and not look at it as a territorial issue.
With regard to the issue of the 20/38ths, Mr. Federspiel advised it is
going right back into the housing market just as though it came to the
City. On the sellout approach, they are charged with serving the
housing needs and they see these needs as being broader than just this
one project. Discussion followed.
Mr. Federspiel stated that from the Housing Authority's stand-
point they are an independent body; they as a board have expressed their
desire to participate in handling the housing needs of the City and in
doing so they feel entitled to some compensation for the land to allow
them to serve the purpose for which they are volunteering their time.
Just to say you will give them the money back and that's it, he is
afraid will be a problem.
Mr. Syrop advised that the main thrust of the discussions has
been that the Housing Authority is there to build houses at this point;
they don't feel they are working against one another and do want to
build homes that are affordable to the people that live in that area of
the City. He urged the Commissioners to attend the board meetings.
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It was the consensus of the Commission to direct the Acting
City Manager to say that the City is willing to reimburse the Housing
Authority, not to exceed the sum of $140,000, upon verification of out
of pocket expenses. Mrs. Horenburger advised she believed the first
thing they have to resolve is to put together the land for whatever is
going to be built there; they have to nail down the ownership of the
land so they don't have the dual roles with two agencies overseeing
whatever project ends up going there.
The City Attorney advised that the offer the Commission has
before them from Procacci is an offer which has to be accepted or not by
November 4th; the Commission needs to see whether their representative
is authorized and can, in fact, extend their offer through to the llth
of November. Mr. Hinners stated he will make that representation and
will extend through November 11.
Mayor Campbell clarified that the Commission will be looking
for (1) a response back to a formal position from the Housing Authority
and (2) a clarification of all the financial data and comparison of the
prospective projects that have been given so that the Commission can
make an affirmative determination based on the varying merits of the two
situations. If the City Attorney's Office suggests important informa-
tion that could make a difference either way, the Commission would need
to know that.
Mr. Weatherspoon moved to postpone the matter that was pub-
lished for hearing this evening to Tuesday, November 10th, with an
understanding that if the Commission is not ready to do it Tuesday it
will not be placed on the agenda; as a procedural item, that come
Tuesday they will have it further postponed, seconded by Mrs. McCarty.
Upon roll call the Commission voted as follows: Mr. Dougherty - Yes;
Mrs. Horenburger - Yes; Mrs. McCarty - Yes; Mr. Weatherspoon - Yes;
Mayor Campbell - Yes. Said motion passed with a 5 to 0 vote.
Mayor Campbell declared the meeting adjourned at 7:55 P.M.
C]~erk
ATTE S T:
MAYOR
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 November 3, 1987, which minutes were formally
approved and adopted by the City Commission on ~. ~//~7
City-Clerk
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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