LAKE WORTH COMMUNITY REDEVELOPMENT AGENCY
REGULAR MEETING
HATCH 1121
1121 Lucurne Ave.
Tuesday, February 12, 2019
6:00 P.M.

I. ROLL CALL:
The Recording Secretary called the meeting to order at 6:00p.m. on the above date at HATCH 1121, Lake Worth, Florida.

Present were CRA Members Madlyn McKendry, Brendan Lynch, Chris Pettit, Brent Whitfield, Mark Rickards, Leah Foertsch & John Paxman.
Also present was CRA Director, Joan Oliva

II. PLEDGE OF ALLEGIANCE:

III. AGENDA – ADDITIONS/DELETIONS/REORDERING:

Action: Motion was made by Mr. Rickards to reorder VII a to VII b and make VIII a to VII a seconded by Mr.Lynch.

Vote: All Ayes

IV. PUBLIC PARTICIPATION ON NON-AGENDAED ITEMS (3-minute limit):

Richard Stowe, Lake Worth City Tree Board- Thursday at 7pm the Tree Board will be giving a theatrical performance on the Everglades at the Cultural Plaza. The second event is the 14th annual Festival of Trees. This event will take place at the Cultural Plaza. March 14th the library will be hosting a Tree Board talk. I have posters for everyone to take and distribute.

V. MINUTES:

a. January 22, 2019

Action: Motion was made by Mr. Paxman to approve the January 22nd minutes seconded by Mr Pettit.

Vote: All ayes

VI. CONSENT AGENDA:

a. Change Order #1 Demo & Lot Clearing 1106 & 1110 17th Ave. North

Action: Motion was made by Mr. Lynch to approve the consent agenda seconded by Mr. Pettit.

Vote: All ayes

VII. ACTION AGENDA (Re-ordered):

a. Commercial Façade Grant Applications: 106 & 112 North ‘O’ Street
The Commercial Grant Programs offered by the CRA were designed to leverage public funds with private investment, leading to larger commercial projects throughout the CRA District. Last year, Jewell Hotel LLC purchased the properties at 106 & 112 North ‘O’ Street in the Parrot Cove neighborhood, just east of downtown. The owners of Jewell Hotel have been working diligently with City Staff since late 2018 in an attempt to create a new bed & breakfast and construct a new extended stay hotel at the two sites.

The parcel at 106 North ‘O’ Street is a shuttered, vacant former boarding house built prior to 1925. The owners of this property are planning to significantly restore the structure and convert it into a 9-unit bed and breakfast inn. After completion, in order to help finance the restoration costs, the owners of the property will be applying for federal income tax historic credits offered by the U.S. Department of the Interior.

Jewell Hotel LLC also purchased the adjacent 6,700sq.ft. vacant lot at 112 North ‘O’ Street. The owners of the property are proposing to construct a new three story, 20-unit extended stay hotel on this parcel.

Both of these projects are meant to complement each other by sharing amenities and by providing much needed short term lodging in our historic downtown. The projects are also located in the newly created ‘Hotel Overlay Zoning District’, which is intended to provide a mechanism through a conditional land use process to encourage and facilitate the development of hotels or motels.

The owners of Jewell Hotel, LLC have submitted CRA Commercial Façade Grant applications (EXHIBIT’s ‘A’ & ‘B’) for each property to assist with the renovation and/or development of the projects. The combined estimated purchase, pre-development and construction costs of both buildings will meet or exceed $2 million.

The CRA’s Commercial Façade Grant offers up to $25,000 per parcel or project. The CRA and applicant are in agreement that each project could apply for the maximum grant amount. Therefore, the applicant has requested CRA grant funding assistance in the amount of $50,000 ($25,000 x 2 projects/parcels). CRA grant funds are only to be used to cover exterior improvement construction costs which are visible from the street.

If awarded, the funds would be reimbursed to the applicant after the project has been completed and a certificate of occupancy has been provided by the City. In addition, a lien would ensure that the applicant would not be able to sell or transfer the property two years after receiving the funds or they risk having to repay the grant.

Restoration of historic structures and placing vacant underutilized lots back on the tax rolls are fundamental aspects of the Lake Worth redevelopment program. Staff supports the use of the Commercial Façade Grant funds to assist with the renovation and new construction of these two projects. Representatives from Jewell Hotel LLC presented and answered any questions at the CRA Board meeting.

Staff recommended the Board review and award funding for $50,000 ($25,000 per each project) as part of the CRA’s Commercial Façade Grant. The applicant would enter into two separate grant agreements, one for each parcel/project, and funds would be reimbursed only after completion of the projects.

Mr. Wes Blackman with CWB Planning Firm will be working on this project. Mr. Blackman gave an overview of the project. He stated that all City approvals have been issued. The two properties will have a shared use agreement.

Action: Motion was made by Mr. Pettit to approve funding for $50,000 ($25,000 per each project) as part of the CRA’s Commercial Façade Gran seconded by Mr. Paxman.

Vote: All ayes

Comments were made by Richard Stowe & Tom Convoy

VII. PRESENTATION AGENDA (RE-ordered):

a. Anderson & Carr- Property Update

Zach Rosetti & Paul Snitkin gave a presentation to the Board on the purchases that the CRA had recently made.

b. Creative Escapes- Terminate Agreement

At the June 16, 2017 CRA regular meeting, the Board approved a Purchase and Sale and Development agreement with Creative Escapes, fka, Maestria Decorative Finishes, LLC, for the development of a 4,200 square foot, mixed-use development fronting both Lake and Lucerne Avenues. Back up materials are included in the Board packets. At the November 13, 2018 Board meeting, the Board directed Staff and our Attorney, David Tolces to come back to the Board with a revised agreement between the CRA and Creative Escapes that included deadlines for tasks and conditions for reimbursement. A draft agreement was submitted to Creative Escapes and their attorney in November. However, both sides could not come to agreement on certain issues and therefore the attorney for Creative Escapes asked that the client be reimbursed for his costs in exchange for termination of the original agreement. Creative Escapes paid for almost $7000 in architectural fees for the the changes made to the site plan, that were not approved by the CRA Board, in September of 2018.

A Mutual Release and Termination for the Agreements between the Lake Worth CRA and Creative Escapes has been included for the Boards review. Once executed, the CRA will have no further obligation to Creative Escapes and the both the Purchase and Sale and Development Agreement and amendments will be concluded.

Staff requested the Board execute the release and termination of the agreement between the Lake Worth CRA and Creative Escapes and authorize the Executive Director to process the necessary payment.

Action: Motion was made by Mr. Pettit to execute the release and termination of the agreement between the Lake Worth CRA and Creative Escapes and authorize the Executive Director to process the necessary payment seconded by Mr. Paxman.

Vote: All ayes

IX. EXECUTIVE DIRECTORS’ REPORT:

a. SBDC Market Research Workshop- February 26th 9 AM HATCH 1121
b. State of the City-February 26th 6 PM Lake Worth Casino
c. 2nd Annual CommUNITY show Opening Night- March 2nd 6 PM HATCH 1121
d. Take Root South FL in partnership with HLC & Freddie Mac- March 28th 7:30-Noon
Lake Worth Casino

X. BOARD MEMBERS’ COMMENTS:
Mark Rickards-When demoing a building do we offer things for salvage? I read the paper today for the parking garage. I don’t know if we are assembling property to bridge the gap. What is the Commission’s direction?
Brent Whitfield- I think the agenda reflects what the CRA should be doing from start to finish.
Christopher Pettit- The nice thing is that the legislature has not come out with anything CRA related. This Board is doing very wonderful things. Thank you Joan and staff.
Leah Foertsch- Great meeting and great presentation. We have a lot of exciting things happening.
John Paxman- I think with the assemblages we are giving the City an opportunity to control a very important part of its destiny. They did not have this opportunity as little as 6 months ago.
Brendan Lynch- No comment.
Madlyn McKendry- Excited to see how O Street will turnout. I have a client who is interested in one of the cottages.

XI. ADJOURNMENT:
Meeting adjourned at 6:50 p.m.

Important Notice

The CRA Offices will be closed to the public until further notice. Please contact us by phone or email.

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