LAKE WORTH COMMUNITY REDEVELOPMENT AGENCY
1121 Lucurne Ave.
Tuesday, May 14, 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 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:
IV. PUBLIC PARTICIPATION ON NON-AGENDAED ITEMS (3-minute limit):
a. February 12, 2019
Action: Motion was made by Mr. Paxman to approve the February 12, 2019 minutes seconded by Mr. Whitfield.
Vote: All ayes
VI. CONSENT AGENDA:
a. Anderson & Carr Real Estate Services- Extension
b. NSP- Policy Update
Action: Motion was made by Mr. Paxman to approve the consent agenda seconded by Mr. Rickards.
Vote: All ayes
VII. ACTION AGENDA:
a. Commercial Façade Grant Application- 414 North G 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, Mr. Patrick Simescu, representing Pumpkin Seed Properties LLC, purchased the property at 414 North ‘G’ Street located in the City’s newly created Artisanal Industrial area. Mr. Simescu is also the owner of Gulfstream Pool Co., currently located in Delray Beach. By acquiring this property on ‘G’ Street, Mr. Simescu plans to construct new warehouse/office/showroom space and relocate his pool contracting business from Delray to Lake Worth, which will include his 12 current employees.
The parcel at 414 North ‘G’ Street is a nearly half acre lot containing two existing buildings which will be renovated and used as storage. The lot also contains sufficient space for the proposed 4,000 sq.ft. warehouse/office structure and parking. This property has previously been used for light industrial uses and most recently as storage of large construction equipment. Work at the site will also include minor upgrades to the rear alleyway, sidewalks and the installation of new landscape.
Mr. Simescu has submitted a CRA Commercial Façade Grant application to assist with the cost to construct the new warehouse/office/showroom building. The costs of construction is expected to exceed $150,000.
The CRA’s Commercial Façade Grant offers up to $25,000 per parcel or project. The CRA and applicant agree that this project is eligible for the maximum grant amount. Therefore, the applicant has requested CRA grant funding assistance in the amount of $25,000. CRA grant funds are only to be used to cover exterior improvement and construction costs which can be viewed 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 within two years of receiving the funds or they risk having to repay the grant.
Creating programs for land development and using financial incentives to facilitate new investment in the CRA district, thereby increasing the tax base, is one of the primary objectives of the Redevelopment Plan. Staff supports the use of the Commercial Façade Grant funds to assist with the new construction and renovation work at 414 North ‘G’ Street. Mr. Patrick Simescu, representing Pumpkin Seed Properties was present to answer any questions at the CRA Board meeting.
Staff recommended the Board review and award funding for $25,000 as part of the CRA’s Commercial Façade Grant. The applicant would enter into a grant agreement and funds will be reimbursed only after completion of the project.
Mr. Patrick Simescu was present to answer any questions that the CRA Board may have in regards to the project.
Action: Motion was made by Mr. Paxman to award funding for $25,000 as part of the CRA’s Commercial Façade Grant. The applicant would enter into a grant agreement and funds will be reimbursed only after completion of the project seconded by Mr. Whitfield.
Allen Schultz- I’ve been involved in municipal government for years and after listening to this presentation I would approve this project.
Vote: All ayes
b. The MID- Approve 1st Amendment and Restrictive Covenant
In March 2018, the CRA and 1601 Dixie Holdings Inc. signed an agreement for the development of property and development assistance for the 5.6 acre property at 1601 N. Dixie Highway. Affiliated, aka 1601 Dixie Holdings Inc. plans to build The MID, a multi-million, mixed-use development that includes 1 and 2 bedroom market rate apartments along with live/work units, a clubhouse, pool and other amenities.
Their original financing and development plan included the development of 230 market rate units. After months of underwriting and searching for an alternative and faster approval process, Affiliated has found alternative financing that would allow them to begin construction sooner rather than later. This new financing would require a restrictive covenant to be placed on the property. The restriction would ensure that ten percent (10%) of the units be rented to “eligible persons.” An eligible person is an individual or household making less than 125% of Area Median Income (see chart below). In addition, the MID development will provide approximately 9500 square feet of commercial space, providing an opportunity for the attraction of retail establishments and jobs.
Affiliated provided a first amendment to the development agreement and a restrictive covenant agreement for the Board’s review. Staff requested the Board approve the first amendment and the restrictive covenant agreement between 1601 Dixie LLC and the Lake Worth CRA.
Affiliated gave the Board an update on this project. The project is awaiting permits for demolition.
Action: Motion was made by Mr. Paxman to approve the first amendment and the restrictive covenant agreement between 1601 Dixie LLC and the Lake Worth CRA seconded by Mr. Rickards.
Vote: All ayes
c. Property Acquisition- Purchase of 710 1st Avenue South
In December, 2016, the CRA established a $4M line of credit with PNC bank for the purpose of acquiring property within the CRA District. Since then, the CRA, with assistance from the City and our brokers, Anderson and Carr, purchased eighteen properties, providing for assemblages along both Lake and Lucerne, Dixie Highway and Downtown.
To date, two downtown assemblages are in the planning stages for future development. One is located between South “L” and “M” Streets and the other at South “K” and 1st Avenue South. The latter includes two City lots, currently used for parking. Two others, 25 South “K” and 704 1st Avenue South, were purchased by the CRA in February of this year. To complete the assemblage and provide a rectangular parcel for development, 710 1st Avenue South needs purchasing. The current owner was amendable to selling and a residential contract for sale was signed. The purchase of this lot would allow for the future development of a mixed-use project or a parking structure, if the City wishes to build one in the future. In the meantime, the land may be used to provide some temporary parking needed to support the downtown.
Anderson and Carr has completed a value analysis and it is included in the Board packet for Board review.
Staff requests the Board authorize the purchase of 710 1st Avenue South and authorize Staff to draw funds from the economic development and property liability accounts. Staff also requests the Board authorize the Chair, Vice Chair and/or Director to sign all necessary documents relating to the sale.
Action: Motion was made by Mr. Paxman to authorize the purchase of 710 1st Avenue South and authorize Staff to draw funds from the economic development and property liability accounts. Staff also requests the Board authorize the Chair, Vice Chair and/or Director to sign all necessary documents relating to the sale seconded by Mr. Whitfield.
Vote: All ayes
VIII. EXECUTIVE DIRECTORS’ REPORT:
Staff stated that we have temporary facilities until the new bathrooms are ready.
IX. BOARD MEMBERS’ COMMENTS:
John Paxman- No comment.
Leah Foertsch- No comment.
Brent Whitfield- Its nice to see things happening downtown. It feels like there are good opportunities.
Mark Rickards- No comment
Christopher Pettit- Ill be at the event on Friday.
Brendan Lynch- No comment.
Meeting adjourned at 6:28 p.m.