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VILLAGE OF TEQUESTA
Post Office Box 3273 • 357 Tequesta Drive
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, �, yuesta, Florida 33469-0273 • (407) 575-6200
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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: