HomeMy WebLinkAboutDocumentation_Regular_Tab 5C_4/12/1990 Ci VILLAGE OF TEQUESTA ok ,,,,,.. 1 Post Office Box 3273 • 357 Tequesta Drive 7 Tequesta, Florida 33469-0273 • (407) 575-6200 "ids FAX: 407 575-6203 TEQUESTA DOWNTOWN DEVELOPMENT TASK FORCE MEETING MINUTES MARCH 2 6 , 1 9 9 0 I . The Tequesta Downtown Task Force held a regularly scheduled meeting at the Village Hall, 357 Tequesta Drive, Tequesta, Florida, on Friday, March 26 , 1990. The meeting was called to order at 9 : 35 A.M. by Carlton Stoddard, Chairman. other Task Force members present were Jim Pilz and Dr. Stanley Jacobs . Also in attendance were: Village Manager, Thomas G. Bradford, Ed Nelson, former Task Force member; Village Planner, Jack Horniman; Sir John van Kesteren; Bill Kascavelis, Finance Director; William Burckart, Councilmember; and special speaker, Pete Pimentel , Executive Director, Northern Palm Beach County Water Control District. II . APPROVAL OF AGENDA Under "Any Other Matters" , Jim Pilz asked that discussion take place regarding the final report recommendations of the Downtown Development Task Force. The Agenda was approved as amended. • III . APPROVAL OF MINUTES A) Task Force Meeting of March 9, 1990: Page 2 , second paragraph change "the can accomplish" to "they can accomplish" . Page 3 , second paragraph, line 6, change "extract" to "extricate" . Third paragraph, first line, change "extracting" to "extricating" . Page 4, first paragraph, change "the kinds" to "these kinds" . Third . paragraph, line 5 , change "appointed advisory body" to "appointed advisory administrative body" . Downtown Development Task Force Meeting Minutes March 26 , 1990 Page 2 Page 7 , first paragraph, second line, change "purpuse" to "purpose" ; line 5 , change "redevleopment" to "redevelopment" . Second paragraph, first line, change "is an important. " to "is an important factor. " Page 10 , third paragraph from bottom, delete "Can you expand your allotment for residential?" and add "Can you expand your municipality boundaries by annexation?" Last paragraph, last line, change "experienceing" to "experiencing" . The above-referenced Minutes were approved as amended. IV. OVERVIEW OF SPECIAL TAXING DISTRICTS AND POTENTIAL APPLICABILITY OF THE SAME TO THE DEVELOPMENT OF THE TEQUESTA MASTER PLAN. PETER PIMENTEL, EXECUTIVE DIRECTOR, NORTHERN PALM BEACH COUNTY WATER CONTROL DISTRICT (NPBCWCD) . Village Manager Bradford reviewed for all in attendance where the Task Force stands at the present time, and explained why Mr. Pimentel is in attendance this morning: The Task Force has been studying ways to implement the Master Plan, or variations thereof. One option was the creation of a Community Redevelopment Agency (CRA) within all or a portion of the Master Plan area. Recently Doug Ballard, Director of Development for the City of Ft. Pierce spoke to the Task Force on that subject. One other option for consideration has been the creation of a Special Taxing District. It has been felt that if the drainage, roadways, sidewalks, street lighting, etc. could be provided, that might be a stimulus to helping to get the development started. With that in mind, Mr. Pimentel was asked to speak to the Task Force and/or Council on that subject. Mr. Pimentel will explain, from first-hand experience, what Special Taxing Districts can and cannot do, and the potential applicability of the same in the Master Plan area. MR. PIMENTEL: Special Taxing Districts, for many years, have had a bad image in the eyes of the State. A few years ago I became President of the Association of Special Districts, which is a state- wide organization. Through my efforts, as well as that of other people, we have worked with Tallahassee for legislative support. Last year, passed into law, was an Act entitled Chapter 89-169 Florida Statutes. It acknowledges Special Taxing Districts as a viable entity to provide infrastructure to help meet the local government's Comprehensive Plan requirements. Downtown Development Task Force Meeting Minutes March 26 , 1990 Page 3 - NPBCWCD has been in existence for about 30 years. We encompassed an area near Tequesta (the area basically west of the River) when NPBCWCD was formed. It basically identified a large area. NPBCWCD does not provide services or tax anyone until it has gone through a very rigorous legal process. NPBCWCD has a lot of authority. It is not a local government, has no zoning powers, no subdivision platting powers , no police powers of any type. It is merely a "service" provider which provides infrastructure, maintains it, and later turning it over to the local government. Some of the projects NPBCWCD has done are: 1 ) PGA National: Ten years ago NPBCWCD undertook this as an independent unit. The cost of providing services to any one of these units is borne by the landowners within that unit. We don't intermingle taxes , or funds. We levy a special assessment against the landowners to whom we provide the services. NPBCWCD constructed all of the major roads and all of the drainage systems , and all the lakes and water systems. These are all owned and operated by NPBCWCD. 2 ) Gardens Mall : All of the entrance roads and the lakes and fountains are all owned and operated by NPBCWCD. NPBCWCD constructed them. The regional center pays the taxes for those. 3 ) The Lakes and Shores project in Jupiter: 4 ) NPBCWCD has two industrial parks for which they provide services . With regard to Tequesta's downtown area, the infrastructure can be done in one of two, and possibly, three ways under the above- mentioned Act: 1 ) Amend NPBCWCD's boundaries to include this downtown area as an independent district. NPBCWCD does not have to have contiguous boundaries. It is possible to have isolated areas because it is an independent unit that does not rely on anyone else to provide its needs. NPBCWCD would work with Tequesta's Master Plan to provide the infrastructure. The taxes would be levied against that piece of property. There would be a special assessment that appears on Tequesta's tax roll, collectable along with ad valorem taxes. This is what gives NPBCWCD the strength to sell tax-exempt bonds. In the case of water and sewer, NPBCWCD would build the water and sewer system. Probably ENCON would be assigned the sewer system. NPBCWCD would give ENCON the sewer system and possibly the water system would go to Tequesta. NPBCWCD does not have to own it because the pledge to pay for it is the land. NPBCWCD continues levying the special assessment to pay off the bonds . ENCON would charge the people the sewer rates, and Tequesta would charge them the water rates. • • Downtown Development Task Force Meeting Minutes March 26 , 1990 Page 4 The Village does not lose control over anything NPBCWCD does, because anything they do, the Village has to permit . NPBCWCD has no authority to do anything , except that which is authorized by the local government. JIM PILZ: Do the landowners have to consent, and if so, do they have to be 100% in agreement? MR. PIMENTEL: Yes, they have to consent. Some years ago, NPBCWCD encountered some problems where we could not get 100%. We went to Tallahassee, after first going to a local delegation and presented the problem that the infrastructure was needed but landowners could not agree 100% and local government felt this was the only approach. The legislature gave NPBCWCD a method by which they could force the formation of that district, and gave NPBCWCD the right to levy a one- time tax to develop a plan to show the landowners what it would cost. If a landowner opposes, he probably would be "carved out" or excluded. Occasionally, this situation is encountered. If at a later time that landowner wants to join the system, they have to pay all of the back special assessments as though they were part of the district from day one. That is the only equitable way to do that. 2 ) A second option would be a district controlled by landowners. Under NPBCWCD we have a 1 acre - 1 vote situation; if you own 1000 acres of land - you get 1000 votes from that NPBCWCD Board member. That has been a controversial issue for some time. NPBCWCD is not interested in having that changed right now, because there is a lot of land that needs to be developed. This concept is a case where the landowner maintains control to do what he needs to do to develop the land. The control lies with the municipality, since they don't have to issue a building permit. If the Village goes the route of its own independent district, obviously there are not any registered voters who own land within that area. Therefore, there could not very well be a popular referendum vote. It would probably be a case where it would be a 1-acre, 1-vote situation. The Village could appoint the Board members, along with the landowners, to work togeter to carry out the Master Plan. The Village can mould the Act to meet its needs. 3) The third approach that might be available to the Village is to have a dependent . district where the Board members and/or the Budget are controlled by the Village Council. Some bonding counselors have said that's not the intent of State law; however, the law does not stipulate that the local Downtown Development Task Force Meeting Minutes March 26 , 1990 Page 5 government cannot form their own dependent district to do these kinds of things . You may want your Village Attorney to take a look at that if that is the approach you decide upon. If the Village wants more control, a dependent district is the way to go. Landowners probably would not want this approach, because once the plan is approved, they would probably want to develop at their own pace. Back to the issue of whether a landowner wants to participate or not: If the Act was structured properly, a landowner would not be obligated to pay anything to form the district. It could be set up in a unit approach, whereby, if the area around Tequesta Drive is ready to be developed, initially the infrastructure would have to be put in to serve that. That's not the best approach, because you would probably want to build some of the facilities large enough to meet population growth. You have to meet the basic, minimum requirements of this Act. But, beyond that, you can mould it to suit your needs. V. QUESTIONS AND ANSWERS WILLIAM BURCKART: How long do you amortize the improvement crossover? MR. PIMENTEL: NPBCWCD likes 20 years , but I think you can go to 30 years . NPBCWCD has brainstormed this Act with W.R. Hough, underwriters for special district bond financing, who have good working knowledge of how this Act can be financed. At some point in time you may want to discuss that with them. (Mr. Joe Wise of W.R. Hough would like to meet with us even on this. ) From the Village's standpoint, the benefit of the independent Special District concept is that the landowners come to the Council , get approval of the Site Plan, and that's the last time the Council ever has to deal with it, and the last time it gets into the public arena. That Special Taxing District is the one that's obligated. It doesn't affect your 10 mil cap. CHAIRMAN STODDARD: Would you please clarify the question: Would the Village of Tequesta be deprived in any way of its tax revenue? • Downtown Development Task Force Meeting Minutes March 26, 1990 Page 6 MR. PIMENTEL: It does not impact the Village revenue sources at all . It will impact the political end of the Village down the road. If any of this land becomes residential , and they're paying a special assessment on their tax bill. They look at their tax bill and see their bottom line. They don't care what the School Board or the County is charging - they're only looking at that bottom line. At some point in time the Village may want to go to a referendum, for building the administrative Town Hall or whatever. Going to a referendum becomes a little more difficult when you tell someone they're paying all these taxes, plus a Special District assessment. From that standpoint, it becomes a bit of a political problem, but only if there is a lot of residential in that district. The County Commission is concerned about Special Districts from that standpoint. They are building the criminal and county court complex and other things that the County needs to build. They will need to go to a Referendum, and may get some negative feedback. The key to Special Districts is : anyone buying into this district is fully appried of the fact that they are buying into a Special District and that they will pay special assessments for roads, sewers, etc. , above and beyond what they are paying in ad velarom taxes, so that their decision to buy into it is a conscious decision. NPBCWCD mandates that wherever there is a residential community. NPBCWCD has actually filed a Disclosure Notice with the public records so the title search picks it up for second and third time buyers. JIM PILZ: Walk us through Step 1 - how long does it take to get an amendment to the Act, and how would the Village go about it? Why would Tequesta want this? Step 2 concerns me as to how the Village could handle another Board; explain the mechanics of Step 2. Tequesta, being a small community, and the Council , being as busy as they are, how can Step 3 be managed? MR. PIMENTEL: I would say an independent district is the way for Tequesta to go. The Council looks at both the day-to-day construction and operation, and implementation of the Plan. I totally agree that that is the way to go. My recommendation is a Special District, whether it's NPBCWCD or your own independent district. Dependent districts brings it right back to the Council, right back to the public comments and reviews, etc. CHAIRMAN STODDARD: Does NPBCWCD have the professional staff to deal with this, and with Tallahassee? Downtown Development Task Force Meeting Minutes March 26 , 1990 Page 7 MR. PIMENTEL: NPBCWCD have approximately 20 complicated projects going right now. NPBCWCD' s Board is a public entity no different from your Council ; we have to file the same Disclosure Records, the same independent audits, the same legal advertising requirements, we have to review our budget in the public arena, etc. NPBCWCD becomes the public entity to deal with that project. We have an existing staff of 12 experienced professional people, capable of handling Tequesta's Master Plan project. JIM PILZ: Would you have to meet with the landowners before going for an amendment to the Act? MR. PIMENTEL: Yes. We would want to see what percentage of them would want to buy into it. NPBCWCD does not need the authority of Council to contact the landowners , but it does need the authority to go to the legislative delegation. The way we would do this is to prepare an amendment to our Act, based on a petition of the landowners, then present that to the local delegation. There are certain things the landowners can do: If the landowner's intent is to implement this Plan, there are certain things that can be done during this interim period of time so that you don't lose any timeframe. If for some reason it did not become law, then NPBCWCD wouldn't be involved in providing the infrastructure. That is a minimal risk. If all ( landowners, NPBCWCD and the Village) are in agreement, there is no basic reason why the local delegation would not support it. DR. JACOBS : If Tequesta goes the route of a Community Redevelopment Agency (CRA) , how does NPBCWCD fit into that picture? MR. PIMENTEL: NPBCWCD just sold a bond issue to JDM Country Club and the rates we got were equivalent to a AAA rated bond, and a CRA is eligible for tax exempt bonds that are non-rated. And it's only because of NPBCWCD's track record. Chances are, these bonds would be non-rated, unless the Village pledged their full faith and credit behind it. . The Village could probably borrow the money at less cost than the CRA. When you build this kind of thing into a mortgage, the only tax write-off is the interest, whereas the Special Assessment is a direct tax write-off. Downtown Development Task Force Meeting Minutes March 26 , 1990 Page 8 MR. BURCKART: Can that be prepaid? MR. PIMENTEL: That has come up a few times. Legally, it probably can - logistically it becomes a nightmare. Therefore, NPBCWCD does not encourage prepayment. This does not become a lien on the property in the sense if the property changes hands, the lien has to be paid off. It's an annual tax that is levied to pay the debt for that year. At NPBCWCD, if there are surplus monies at the end of the year, it is credited against the next year. We start out each year with 0 budget. VILLAGE MANAGER BRADFORD: Give us an example of a subdivision where NPBCWCD did everything, water, sewer, drainage, streets, etc. MR. PIMENTEL: NPBCWCD is doing JDM Country Club right now. We also have the power there to control ingress and egress . Another subdivision is Ironhorse. MR. BRADFORD: What kind of annual assessment would a typical downtown resident have in terms of real dollars? MR. PIMENTEL: NPBCWCD implemented a more equitable program with JDM in that we developed a system where they would get a level debt service, no matter what was brought into that project. The project will be done in three phases with a major bond issue about every third year. They will pay a level debt service around $750 per unit per year, in special assessments, over 20 years. The landowners carry the heavy part of that in the early years . NPBCWCD has found that $500-$750 per year is generally acceptable to landowners. CHAIRMAN STODDARD: Does NPBCWCD have power of eminent domain? MR. PIMENTEL: Yes. If you do your own special district, you can also build that in. NPBCWCD can take right-of-way. CHAIRMAN STODDARD: Does NPBCWCD require funding from Tequesta to start the inquiry or research? MR. PIMENTEL: Yes, but we would not look to the Village to do that - we would look to the landowners. NPBCWCD would need the money to prepare the legal Act. There would be some legal fees for amending the Act, possibly meeting with landowners and their attorney, the Village attorney, etc. , but not exhorbitant costs. NPBCWCD has no money other than what member districts are paying. ti Downtown Development Task Force Meeting Minutes March 26, 1990 Page 9 JIM PILZ: If we started this year, what time next year could we expect to begin? MR. PIMENTEL: June 1991 . Local bills generally become law the last week of session. North County only has three members you would need to convince: Doc Meyers ; Jim Hill ; and Marion Lewis. Doc Meyers and Marion Lewis have been strong supports for this concept. Having two of those three would pretty much give you your local bill. There are things NPBCWCD could do in the meantime. What you spend in implementing the Plan is reimbursable. NPBCWCD doesn't become your banker. What ever we sell bonds for, you pay for, as long as you own the land. What we build becomes public and we do have a right to control ingress and egress. MR. BRADFORD: In respect to the Master Plan, Tequesta has a multitude of needs: roads, right-of-way, street lights, etc. But, even outside the Master Plan, Tequesta has a drainage problem. Can those things be delineated so that people outside of the special district are paying less for a downtown drainage project, whereas those within the downtown special district are paying more because they have direct benefits? MR. PIMENTEL: Residents are responsible only for that part of the infrastructure that serves them directly. They probably would pay an overall proration of administrative costs , but they would pay directly for what they receive as benefits. NPBCWCD takes a ,large development and forms many units within. That could even happen in your Master Plan area. Again, we would have to look at how that would flow. This isn't a real big piece of property when we consider some of the projects we have built. CHAIRMAN STODDARD: Tequesta's biggest drainage problem is downtown. Would it be possible through the mechanism of a special district to solve this drainage problem by on-site water retention, utilizing landscaped lagoons or reservoirs like those at Gardens Mall? MR. PIMENTEL: Sure. The Cypress Drive issue can be dealt with through this project. Obviously the Cypress Drive property owners benefit. Owners in that area could join a special taxing district to solve that issue. • Downtown Development Task Force Meeting Minutes March 26, 1990 Page 10 MR. BRADFORD: What are the benefits of an independent special taxing district to landowners? MR. PIMENTEL: 1 ) Much lower bonding rates than through other sources; 2 ) Easier financing for their project ; 3 ) What NPBCWCD bills is carried over a period of time, spread over 20 years. The landowner doesn't have a full hit up front. That 1/20th annually is at a lower rate because our rates are lower. NPBCWCD gives their staff a lot of leeway. We set a lot of standard programs. We expedite a lot more than local government. Our only constituents are the landowners who are building the project. Generally, they are the ones we have to answer to, and when they want to move, we can generally move a lot faster than your local Council . JIM PILZ: Does NPBCWCD have to meet a certain percentage for low- income housing. MR. PIMENTEL: Your local Council does that. NPBCWCD builds what the Council permits. CHAIRMAN STODDARD: Will Tequesta's water system stay intact? MR. PIMENTEL: This will not jeopardize your water system. NPBCWCD could build the water system and deed it to Tequesta. It is not cost-effective to operate a fragmented system. Disney World was built, and is being operated, by a special district. Special districts are not new to this area. MR. BRADFORD: Let's assume an independent district has been started, the infrastructure is in, and the housing is going in. Under normal circumstances, where the Developer got his own sources of financing to provide the infrastructure (say the housing unit would cost $200,000, but because the infrastructure or portions thereof have been provided for through this independent district, in theory, the cost of that infrastructure does not have to be on the tab of the selling price of the unit. Therefore, how does one keep the Developer honest, when the unit would really be only $175,000 since the infrastructure is already in place and paid for? If the Developer sells it for $200,000, the owner is getting hit twice. MR. PIMENTEL: That has come up from time to time. Quite honestly, the landowner is going to sell the property for whatever the market will bear. We have seen examples where the landowner has actually taken advantage of the district and lowered the cost. I am not certain that can be controlled, however. Downtown Development Task Force Meeting Minutes March 26, 1990 Page 11 JIM PILZ: What is the size of your staff? MR. PIMENTEL: Twelve. We utilize contractors and consultants . NPBCWCD does not have a rolling stock of equipment. We take a look at the job that needs to be done and determine which contractor or consultant is best suited for that job. Anything we build is competitively bid. The landowner can use their own engineer and that engineer would become a sub to NPBCWCD's engineer. As far as the building of the infrastructure, NPBCWCD insists on doing it. DR. JACOBS: Could you build a cultural center under this particular scenario? MR. PIMENTEL: NPBCWCD in the past has not been involved in those kinds of things, only because we started out as a drainage district. However, over the years our authorities have been increased. We now have the ability to build passive parks, and put in picnic tables. With a simple amendment to the Act, we could build a cultural center, if that' s what you want. I 'm not sure our Board would be against it. JACK HORNIMAN: Are there any special provisions if the government , is the landowner? What is your normal timeframe from putting it together, to the beginning of construction? MR. PIMENTEL: Landowners would have to pay their pro rata share of the taxes. NPBCWCD from day one would have a petition to form a unit and have identified a viable taxing district. From the day it takes us to form the unit and sell bonds generally takes nine months to a year. However, we can develop a program where a landowner can proceed, under the program, by putting up a Letter of Credit and paying the contractor each month, and then reimburse them upon closing. The government cannot build anything unless they have the ability to finance. DR. JACOBS: Pete, who could you recommend at NPBCWCD to put this whole thing together, contact the individual landowners, form a special daxing district or a CRA? MR. PIMENTEL: If you are interested in the NPBCWCD concept, I have enough flexibility with my Board to spend some with you and it wouldn't cost you anything. I am not too familiar with a CRA. But if the Village decides upon a Special District, I would be glad to meet with the landowners, and whoever else, go through the mechanisms step-by-step and try to put it into some kind of timeframe. If the Village was to go with a special amendment to Downtown Development Task Force Meeting Minutes March 26, 1990 Page 12 - the NPBCWCD Act, the timeframe now would be around the end of this year. That would give you 8 months to find out who is agreeable to it and who is not, and to decide upon alternatives if someone wants out. Dick Ormond, of the NPBCWCD Board, does this very kind of thing. He may be willing to talk to you about this. JIM PILZ: The key ingredient is for someone to speak for Tequesta to be able to bring all this together. This becomes not only a buy but also a sell, and usually a master developer has that role. MR. PIMENTEL: Maybe the master developer is the Village or the District. Maybe the District could buy an entire tract and sell it back. Perhaps that's the approach to take. If your landowners get together and agree to this district, they collectively become the developer. DR. JACOBS : I feel we need a person or an organization to represent the Village to contact the landowners individually. MR. BRADFORD: Contact the landowners to discuss what? JIM PILZ: How would the Village of Tequesta proceed to contact landowners to form a CRA or , a special district. Could the landowners do part of the project on their own, work out their own destiny, or have the Village do it for them? We may or may not take their suggestions . CHAIRMAN STODDARD: I lean strongly towards utilizing the leadership of Peter Pimentel and his organization because it' s in place. JIM PILZ: But can he do all these other things: marketing as well as bringing these people together in agreement? MR. PIMENTEL: Years ago I used to be Director of ENCON. I negotiated that lift station down here on the corner with Dorner. Therefore, I have a relationship with Dorner that goes back 15 years or more. I can sit down with this plan and tell him how we would provide all the infrastructure and what his commitment would be. I have lots of experience in negotiations. Y Downtown Development Task Force Meeting Minutes March 26, 1990 Page 13 Dr. Jacobs moved that the Task Force allow Peter Pimentel to put these ideas together and come back to the Task Force with a proposal that could then be recommended to the Village Council . Jim Pilz seconded the motion. The vote on the motion was : Dr. Jacobs - for Chairman Stoddard- for Jim Pilz - for the motion was therefor passed and adopted. VI . ANY OTHER MATTERS A) Dr. Jacobs gave a brief report on his visit to the Port Charlotte cultural center, ( located near Punta Gorda, and Ft. Myers, Florida) along with a presentation of literature and pictures . B) Village Manager Bradford reminded the Task Force of their earlier discussion of ways and means that Tequesta could commit more resources and/or people to the Master Plan to help bring it to completion. In reference to Mr. Pilz' s suggestion of appointing a czar over the whole Master Plan project, he asked. the Task Force to think about having the Building Department, under a changed name such as, Department of Community Development, hire a Director of Community Development to be over the Building Official , the Deputy Building Official , the two secretaries, the Building Inspector and have all activities such as Code Enforcement, Zoning, etc. reporting directly to the Village Manager, with all of those resources at their command to help facilitate the Master Plan. C) , Jim Pilz suggested that the Downtown Development Task Force do a booklet that would include all Task Force meeting summaries , with its recommendation on the inside front of the booklet. D) Mr. Bradford reminded the Task Force that Council desired to have a workshop with them before May 1 , which would also be a good time to present the Task Force Final Report. r' a, Downtown Development Task Force Meeting Minutes March 26, 1990 Page 14 VII. ADJOURNMENT. There being no further business before the Task Force, the meeting was adjourned at 11 : 40 A.M. Respectfully submitted, N7J7,;./a/lx_/ Fran Bitters Recording Secretary ATTEST: Bill Kascavelis Finance Director/ Village Clerk Date Approved: