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HomeMy WebLinkAboutDocumentation_Regular_Tab 8A_1/9/1997 • .:116: VILLAGE OF TEQUESTA Post Office Box 3273 • 357 Tequesta Drive _ Tc , , �, yuesta, Florida 33469-0273 • (407) 575-6200 ;� .oT Fax: (407)575-6203 " couN VILLAGE.OF TEQUESTA FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES DECEMBER 5, 1996 I . CALL TO ORDER AND ROLL CALL The Tequesta Finance and Administration Committee held a regularly scheduled meeting at the Village Hall, 357 Tequesta Drive, Tequesta, Florida, on Thursday, December 5, 1996 .. The meeting was called to order at 5 : 30 P.M. by Chairman Joseph Capretta. A roll call was taken by Betty Laur, the Recording Secretary. In attendance were the following Committee members: Joseph Capretta, Mayor Ron T. Mackail, and Michael R. Meder. Also in attendance were Village Manager Thomas G. Bradford, Village Clerk Joann Manganiello, and Department Heads. II. APPROVAL OF AGENDA Committeemember Mackail made a motion to approve the agenda as submitted. Committeemember Meder seconded the motion. The vote on the motion was: Joseph N. Capretta - for Ron T. Mackail - for Michael R. Meder - for The motion was therefore passed and adopted and the agenda was approved as submitted. III. COMMUNICATIONS FROM CITIZENS (NON-AGENDA ITEMS) FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES DECEMBER 5, 1996 PAGE 2 . There were no communications from citizens. IV. REVIEW OF OPTIONS FOR INCR$ASSING COST OF HOLDING VACANT LAND Village Manager Bradford reported that staff had prepared cost estimates for the following projects: 1. New roadway and landscaping from Village Boulevard to Tequesta Drive, primarily on Donner Land - $911,533 This would be where St. Jude' s drive was and would continue on to Tequesta Drive, and would also contain a "T" between the post office and the library. Chairman Capretta commented that he was in favor of this road, particularly the spur between the post office and the library; and stated that this road could provide\ rear egress from Tequesta Oaks. Chairman Capretta suggested that the "T" could just be an "L", so that the road would just be from Tequesta Oaks with a right turn coming out . at the library, and could come out onto Tequesta Drive at the location of the present Flame restaurant building. Village Manager Bradford expressed concern with this concept in that it was not necessarily acceptable to create an intersection so close to the intersection created by Tequesta Oaks Drive. Chairman Capretta responded that was why he favored the "L", and described traffic problems already in existence because of the high volume of patrons coming to McCarthy' s Restaurant, which if Tequesta Oaks were fully developed would block residents inside their development. Chairman Capretta stated that it would be a good idea to tear down The Flame and making it into a parking lot for McCarthy' s, and making a back entrance to Tequesta Oaks would also be a good idea. 2. Streetlights for Old Dixie Highway - $4, 000 FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES • DECEMBER 5, 1996 PAGE 3 Village Manager Bradford reported staff did not think this project would be worth doing since it was only $4, 000 and also because the County should pay for streetlights since it was a County road. , 3. Streetscape for Old Dixie Highway - $329,000 Village Manager Bradford explained this would be the same streetscape used on Tequesta Drive from U.S. one to Fiesta, less the Royal palms. 4. Water Main Hxtension - none needed Since research had indicated no water main extensions were needed, this option was not feasible. 5. Tri-Rail passenger Station (land for station and parking) - $697,500 Village Manager Bradford reported that this cost estimate was based on the Tri-Rail plan; and a subsequent letter from the Director indicated a higher acreage than on the plan. Also, the per square foot price used in the plan was two years old. Therefore, the true cost estimate would be higher than $697, 500 . • Village Manager Bradford explained that if the Committee was interested in any of the options there would be a per acre cost. If financed, there would be a per acre cost per year which would probably appear on tax bills. For option #1 (with the `T) financed for 15 years at 6% interest, including 2% estimated issuance cost, the cost per acre would be $2, 858.33 per acre per year; for option #3 - the streetscape for Old Dixie Highway - the cost per acre would be $559 .80 per acre per year; and for option #5 - Tri-Rail Passenger Station - the cost per acre would be $1, 567.85 per acre per year. Village Manager Bradford reported that a potential problem with the Tri-Rail plan FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES DECEMBER 5, 1996 PAGE 4 was that part of the land would be for parking and a State statute required property owners' permission for parking. Committeemember Meder questioned how votes would be obtained, how landowners would be qualified to vote, how many votes different landowners would have, and how that process would work. Village Manager Bradford responded that he did not know the answers. Chairman Capretta recalled that some time ago when discussions had been held regarding the cost for infrastructure for the cultural center proposed by Mr. Benjamin, Pete Pimental had said that he would do it free of charge. Village Manager Bradford. explained that Mr. Pimental had said that on the assumption that Mr. Benjamin would take ownership of the land; and that if all the landowners agreed to be assessed and to financing, that Pimental' s agency could be used. Chairman Capretta suggested the idea be proposed to the landowners. Mayor Mackail commented that in order to assess the , owners the, Village would be placing itself in a shortfall position since Village Manager Bradford' s analysis indicated that the Village could borrow 80% of the funds necessary to do the suggested projects. Village Manager Bradford explained that timing could be such that the work was not begun until the assessments were received. Mayor Mackail suggested that under a CRA, the CRA could take control of the property so that the projects could be done piecemeal provided the plan fit the Village' s goals and objectives. Under this approach the Village would not have to prove a direct benefit. Councilmember Meder commented that the Tri-Rail station could be a direct benefit to U.S. One property owners. Mayor Mackail explained that the CRA was a Community Redevelopment Association under which the difference between the present assessed value of property and the value with FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES DECEMBER 5, 1996 PAGE 5 improvements would pay for the bond established to do the improvements. Village Manager Bradford commented that the downside of the CRA was that with tax increment financing within the area under discussion, the future tax value growth would not benefit the whole town but could only go back into that area, which basically defeated the goal of creating value to create money to help run the Village. Also, vacant land would not qualify as blighted, which was a requirement under a CRA. The Committee discussed the area which had been proposed for CRA improvements at the time of discussion of the Benjamin Plan; and Mayor Mackail commented that it was correct that under a CRA that the tax benefit would not go to the Village, but the economics of the improvements had not been researched and the businesses and shops which would be created would provide a direct economic benefit to the Village. The definition of a blighted area was discussed. The Felhaber property was discussed, which Councilmember Meder did not feel could be considered blighted. Village Manager Bradford commented that the area where Mizner Park had been constructed was formerly the Boca Raton Mall, which had been in much better shape than the old Publix on the Felhaber property, and it had been declared blighted according to law. Mayor Mackail cannented that the Village would have control over those kinds of projects, and Mr. Van Brock would do nothing but sit on the vacant Dorner land. Councilmember Meder commented that a destination was needed in the Village, that means should be provided for people to come, and the Village should do whatever was necessary to make that happen as quickly as possible. Mayor Mackailcommented that Tri-Rail had not been as successful as anticipated. Councilmember Meder explained that people would move to the Jupiter Tequesta area if there were a commuter railway so that they could keep their jobs in the Miami area. Village Manager Bradford explained that those people were coming already, and that people would commute if there were a functional computer a , FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES DECEMBER 5, 1996 PAGE 6 system, especially people who were from other parts of the country and were used to commuting.. Village Manager Bradford explained that the federal government underwrites Tri-Rail, and that it might never make economic sense, but people were going to have to accept other means of transportation given the predicted future population and the fact that DOT had indicated they would never build a road with more that ten lanes in Florida. Councilmember Meder remarked that with four Tri-Rail stations north of the present terminus,, people could move near those stations which would provide great economic growth; and in the meantime if Tequesta provided an excellent parking area and a destination that people would drive to, the Village would draw business before the Tri-Rail station was constructed. Councilmember Meder envisioned a bookstore, Camelot II, high-brow eateries, niche stores, and organizations such as Lighthouse Gallery in the downtown area to provide a • destination point. Lighthouse Gallery' s plans were discussed. village Manager Bradford reported a comment by a resident who had stated that the Gallery' s plans would not be supported by people in Tequesta Country Club since they did not want to spend money to make contributions, and the Village had no big corporations or old families to contribute. Mayor Mackail had made a speech to the Beach Road Association, and commented that he believed they liked the cultural- civic concept. Mayor Mackail expressed his personal opinion that the Village must work with Lighthouse Gallery, Camelot II, and Coastal Players to obtain State funds available to help them move forward, and that they would not be able to accomplish this by themselves. If the Village could show that a cultural center fit into the Comprehensive Plan, the Village could help those organizations without using Village funds. Chairman Capretta questioned whether the development of FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES DECEMBER 5, 1996 PAGE 7 Tequesta Oaks would provide a catalyst to Mr. Van Brock to proceed with building his proposed 200-unit apartment complex. Village Manager Bradford commented that Imo'. Van Brock did not offer the same product as DiVosta, so that it was hard to speculate. Chairman Capretta reported he had heard that several purchasers of Tequesta Oaks apartments had bought more than one unit and planned to rent those units, which would need to rent for $800 to $1400 per month in order to provide sufficient income. Chairman Capretta commented that the Village had two problems: (1) the empty Dorner land which remained vacant since Mr. Van Brock kept telling the owners that it would be more valuable in the future; and (2) the Felhaber slum. Condemning the Felhab er property was discussed. Village Manager Bradford explained that under quick take, the.,property would be appraised, an offer , to purchase the \ property would be made by the Village, and if rejected, the Village would adopt a Resolution of Necessity--which was authority for the Village Manager and Village Attorney to proceed to take the property to closure. The Village Attorney would immediately file a condemnation suit, and would place funds in the amount of the assessed value in the Registry of the Court. There would be a hearing , and the judge would only consider valid public purpose. Then a deed would be given to the Village. A jury trial would then determine whether the amount of money deposited was equal to fair market value. From that point forward, the Village must pay the former owner' s attorney and expert witness fees. Under slow take, the Village would file suit but would not take possession. An ultimate jury trial would determine valid public purpose and would set a price. If the Village felt the price was too high, they could reject it and go to a whole new trial. Meanwhile, the owner would not be able to sell, rent, or do anything with the property and in some instances might contact the Village asking that they buy the property. Chairman Capretta pointed out FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES DECEMBER 5, 1996 PAGE 8 that Mr. Felhaber had already approached the Village three times asking them to buy the property, and had changed his mind each time, but had asked much more than the property was worth. Mayor Mackail favored the slow take method, and indicated that a cultural center possibly with a new Village Hall would be a valid public purpose. Village Manager Bradford commented that both civic and cultural facilities would be needed to assure valid public purpose. Mayor Mackail expressed his opinion that the three cultural organizations working together could get enough in State grants and could raise the remaining funds sufficient to build a new facility if they had a leader who could remain focused on the project; and that store owners already in the shopping center could also be a part of the process. Village Manager Bradford questioned whether if the Village took possession of the Felhaber property the adjacent commercial property owners could be assessed at a rate greater than the rest of the residents because they would benefit from the improved area. ; which could help defray the tremendous cost of the project. • Chairman Capretta listed the problem areas as the old BRITT theater, The Flame property, the Felhaber property, the empty Dorner land, Bridge Road, and suggested working on each until they were all improved. Chairman Capretta commented that the first improvement was Tequesta Oaks, which would generate economic activity. Mayor Mackail questioned whether improving blighted areas would help bring about making it more costly to hold vacant land, to which the response was affirmative. Chairman Capretta commented that choices were available to reach the objectives, and that the least costly choices should be utilized. Also a greater cause than just raising the tax base of the Village must be established as an objective, such as a cultural center. Chairman Capretta commented that Lighthouse Gallery should have a master plan so they FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES DECEMBER 5, 1996 PAGE 9 could raise funds for a new facility. Mayor Mackail reported that approximately a year ago the Gallery had held a weekend retreat for visioning the future of the Gallery and had hired an architect to provide a rendering; however, they had not been able to find a location to build where the cost of obtaining the land was not prohibitive. Mayor Mackail commented that as a non-profit organization, the Gallery must have a specific purpose for requested donations and then must use the funds for that purpose only. Councilmember Meder described plans for Camelot II which would make use of the Felhaber property by creating a large theater surrounded by small suites to be utilized by the various cultural organizations, who would all make use of the common space. There were also some ideas to include commercial enterprises and possibly the Village Hall. Mayor Mackail explained that Gordon Ripma had drawn a nice rendering and had a wonderful plan which he promoted to the Village, to Camelot, to Lighthouse Gallery and to Coastal Players; however, he expected Mr. Felhaber to donate a little more than half the building, which he would never do. Councilmember Meder commented that that plan would be a wonderful cultural anchor for the downtown area if it could be realized through other means. Mayor Mackail reported that Mr. DiVosta had loved the idea. Chairman Capretta commented that none of the projects listed seemed feasible to increase the, value of downtown property and therefore increase, the tax base; and speculated that Mr. Van Brock was advising the trustees of the Dorner Trust to keep their vacant land in anticipation of it becoming more valuable due to the DiVosta development. Village Manager Bradford commented that he was hearing that the Committee wanted to attack overhead by increasing property values, naturally or otherwise; while his approach was to attack it by increasing overhead irrespective of property values. Mr. FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES DECEMBER 5, 1996 PAGE 10 Bradford commented that the Committee might be interested in something assessed or done by the Village that would cause property within its radius to go up in value, but when done by a non-assessment vehicle, the taxpayers were paying for it. Chairman Capretta stated he had no problem with anything that the Village could do as long as it was legal, had a reasonable purpose, and could be implemented without much cost to the Village. Councilmember Meder made a motion to go forward with the streetscape for Old Dixie Highway at $329,000 with 100% of the cost assessed to the four property owners. Discussion ensued. Village Manager Bradford commented that other residents who used that road would benefit as well as the property owners. Councilmember Meder commented that, the streetscape would add value to the four properties, making it much more desirable, and they would realize profits from any sale and therefore get a direct benefit from the streetscape improvements. Village Manager Bradford expressed concern that this was an unusual situation because FEC was one of the property owners and the State law did not allow the Village to assess the railroad. Mr. van Brock' s plans were briefly discussed. Establishing a CRA so that an ALCF could be constructed on Dorner land was discussed. Village Manager Bradford cautioned that Mr. Van Brock would not lower his price for the land just because a CRA was established. Mayor Mackail stated that the Old Publix property was the only land within the Village with potential. Mr. Meder asked whether he should withdraw his motion, to which Mayor Mackail responded he was not opposed to the motion but believed there were other options to consider. Councilmember Meder commented that improving the streetscape on that section of roadway would start some other balls rolling for those properties and the Village needed to do other things with other properties. The streetscape would provide visual improvement. Village Manager Bradford cemented that Mr. FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES DECEMBER 5, 1996 PAGE 11 Pimental' s organization, formerly Northern Palm Beach County Water Control District, was now Northern Palm Beach County Improvement District, which might possibly now have power to do cultural improvements or if not, suggested that the Village get his powers amended to include cultural improvements. If he already had that power, then the Village could amend his border to include everything south of Bridge Road including all of the mixed use district, and then do everything within the Village' s power to go forward with purchasing the Felhaber property and constructing a cultural center. 51% of the property owners would have to agree. This could be presented to the property owners in a charrette. Mayor Mackail commented then the Village would know the position of the property owners. \ Chairman Capretta expressed his opinion that, the Committee should probably proceed with option one because access was needed to the back of Tequesta Oaks; that the streetscape for Old Dixie should be further researched; that further research should be done. on condemning the Felhaber property to be able to use the cultural center idea; that the special district approach should be researched and then that approach compared to the CRA approach; and that at periodic meetings of the Committee reports should be presented on these matters. Chairman Capretta commented that the Village should reestablish contact with Lighthouse Gallery. Councilmember Nader withdrew his motion. V. ANY OTHER NATTERS There were no other matters to come before the Committee. FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES DECEMBER 5, 1996 PAGE 12 VII. ADJOURNMENT Commaitteemember Meder made a motion to adjourn the meeting. Committeemember Mackail seconded the motion. The vote on the motion was: Joseph N. Capretta - for Ron T. Mackail - for Michael R. Meder - for The motion was therefore passed and adopted and the meeting was adjourned at 6:45 P.M. Respectfully submitted, Betty our ATTEST: Recording Secretary Joann Manganiello Village Clerk DATE APPROVED: