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HomeMy WebLinkAboutMinutes_Miscellaneous_07/22/1994_Redevelopment Committee F '' `��� VILLAGE OF TEQLJESTA ; , _, Post Office Box 3273 • 357 Tequesta Drive � Teq�esta, Florida 33469-0273 • (407) 575-6200 ° ' 3 � Fax: (407) 575-6203 ; o @ 4 f ��H CoUM VILLAGE OF TEQUESTA REDEVELOPMENT C�MMITTEE MEETING MINUTES JULY 22, 1994 I. CALL TO ORDER AND ROLL CALL The Tequesta Redevelopment Committee held a scheduled meeting at the Village Hall, 357 Tequesta Drive, Tequesta, Florida, on Friday, July 22, 1994. The meeting was called to order at 8:32 A.M. by Mayor Ron T. Mackail. A roll call was taken by Betty Laur, the Recording Secretary. In attendance were: Chairman Ron T. Mackail, Co-Chairman Joseph Capretta, and Earl L. Collings. Also in attendance were Village Manager, Thomas G. Bradford, and Village Council Member Elizabeth Schauer. II. APPROVAL OF AGENDA Committee Member Collings moved that the Agenda be approved as submitted. Co-Chairman Capretta seconded the motion. The vote on the motion was: Ron T. Mackail - for Joseph Capretta - for Earl L. Collings - for The motion was therefore passed and adopted and the Agenda was approved as submitted. III. CONSIDERATION OF TEQUESTA DOWNTOWN REDEVELOPMENT PROPOSAL. Village Manager Bradford explained Mr. Joe Benjamin had made a redevelopment proposa�. to the Village on March 1, 1994. The Village had hired a consultant to do a financial feasibility study of the proposal who had presented his report in June, 1994, and found the proposal to have demand with certain conditions. Demand for the proposed architectural school and hotel were questioned by the Kecyr.led Paper Redevelopment Committee Meeting Minutes Ju1y 22, 1994 Paqe 2 ------------------------ consultant. Today's meeting was scheduled at Mr. Benjamin's request to give him an opportunity to make his proposal to the Redevelopment Committee. Mr. Benjamin read a prepared statement which set forth the case for redevelopment of the downtown center by Christopher's Viilage Foundation (CVF) in accordance with their master plan, and included a description of the principal changes to Christopher's Village initial redevelopment plan, a general description of the financial implications of the project, and a concept statement for Tequesta Institute for the Arts. In response to Mr. Collings, Mr. Benjamin summarized the principal changes in this latest version of the CVF inaster plan. The Fire Station and Police Station had been omitted; provision had been made to allow the post office to continue in its existing location or to move to another; the site had been extended to the north and to the south; the number of residential homes had been increased to approximately 250 by using land not needed by the Water Department, which would increase the tax base; provision had been made for artisan's workshop/studio units; the building allocated for hotel use had been modified to allow alternative use; and a private parking lot for St. Jude's church had been added. Mr. Benjamin stated these changes should bring 20�-25% increase in the tax increment above the previous plan which was analyzed by PMG Associates. Mr. Benjamin presented a conceptual drawing of the proposed Tequesta Institute of the Arts, which in its first phase would be 30,000+ S.F. and would satisfy all of the requirements of the Lighthouse Gallery; and would also provide a small theatre, a black box theatre, and classroom facilities for BRITT. Mr. Benjamin explained that financing needs could be met from a bond issue by the Village; however, the Village would not be asked to take the risk of issuing a bond until there was an agreement showing that the cost of that bond could be covered by developers or others taking part in this project. Since no one person or developer could afford to take all of the risk to develop the whole area, Mr. Benjamin's plan would be to negotiate with each landowner under a CRA. In response to Mr. Collings, Mr. Benjamin estimated 10% of the land would become non-taxable by moving Village facilities Redevelopment Committee Meeting Minutes July 22, 1994 Page 3 ------------------------ to the area, and that the existing Village Hall complex and surrounding area could be refurbished. In response to Mr. Collings' financing questions, Mr. Benjamin stated he believed Tequesta's population would increase by 25% as a result of the redevelopment thus increasing the tax base; that if the Villaqe established a CRA no up-front dollars would be required from the Village; that the future RO plant could be located within the area and that during project construction wells could be dropped throughout the whole 100 acres providing a good chance for additional water. CVF would have an up-front investment estimated at $3-4 million to build phase one of the Art Institute. Mr. Benjamin stated tax increment financing would only be approximately 1/3 of the benefits gained by the Village, and estimated the maximum period to pay off bonds would be 15 �rears. He explained that since Tequesta lacked land to allow increased tax assessments, the Village must do something vital to attract people into the area which would also attract annexation, thereby providing enough tax funds to operate the Village in future years. Mr. Collings questioned whether other landowners would share Mr. Benjamin's point of view. Mr. Benjamin summarized his latest information on other developer's intentions, and explained that people only wanted to get a reasonable return on their investment, and that a CRA would provide a mechanism for accomplishing that as well as providing condemnation powers. Mr. Capretta stated that the Council would have to believe that the trend of deterioration of the downtown area could be reversed by adopting Mr. Benjamin's plan, and if they came to the conc].usion that this is a solution to the problem, ask themselves whether the Village could afford it even through a CRA. Mr. Benjamin commented his organization would provide a strategic plan for impiementation of the master plan; however, the Council must first make the decision to implement the plan. Capretta stated he was concerned with cash flow, and set forth the following scenario: If the first phase were to include the infrastructure (provided by NPBCWCD) and public buildings, the art institute, parking lots, etc. (non-income producing facilities) when the first interest payment came due on the bonds where would the money come from to make the payment? Mr. Benjamin explained that before a bond would be issued, land would have been acquired from current landowners and agreements would have been signed with various developers to develop portions of the project that would be income Redevelopment Committee Meeting Minutes July 22, 1994 Page 4 ------------------------ producing, such as housing units, so that Mr. Capretta's scenario would not apply. Mr. Benjamin reported Boston Capital was interested in developing 175 rental units and could be ready to start in 6 months if that were feasible, and he would like to negotiate with Mr. DiVosta to develop portions of the project and believed Mr. DiVosta might want to construct rental units also. Mr. Capretta recapped Mr. Benjamin's ideas by stating that if the Village made the decision to establish a CRA and to hire a manager, and if the Village made a commitment by approving the plan and announcing it to the public it would be established that the downtown draw would be the art inst�tute, and based on this key assumption: (1) Developers would come in; (2) Commercial developers would build commercial property to give tax basis needed; (3) Landowners would approve and or would have no power to stop the project. Mr. Capretta listed three alternatives: (1) Accept Mr. Benjamin's plan. (2) Go with another developer like Mr. Divosta who wants to be left alone to build downtown. (3) Go with Mr. Van Brock who would build a more traditional development. Professor Fred Landrum, a partner of Mr. Benjamin and a 35- year area resident, whose experience included many years with the Norton Foundation working tawards the goal of establishing an art institute, spoke to clarify that $20 million was not for the purpose of buildinq Christopher's Village, but was for building the Art Institute, and explained that a CRA in itself would provide funds to allow purchase of the land upon which it would sit. Professor Landrum explained that homeowners' �axes would not increase as a result of this project since the funding mechanism would be tax increment financing under which the taxable value of the target area would be frozen at today's costs, and the taxes on properties in the target area would increase only due to the improvements that would be made. These increases, or tax increments, would be used to finance the project under a CRA. Taxes for residents elsewhere in the Village would increase over time only because the entire Redevelopment Committee Meeting Minutes July 22, 1994 Page 5 ------------------------ north and of Palm Beach County taxes would go up. The tax base the Village has now and the market value of the land is a benchmark that forms the basis for tax increment financing. Mr. Capretta asked what the real risk would be to the Village taxpayer who does not want his taxes to increase. Professor Landrum stated he believed the risk would be minimal, and that one minute after the Village Council made the decision to approve the plan, the price of one acre could increase $15-$20,000, thus providing additional tax revenue in the next assessment period. Since there would be an anticipated 25� increase in population attracted to the Village because of this project, commercial business would increase and property values of land adjacent to the target area could increase at an accelerated rate as a result of the improvements. The Village Council would have to approve the CVF Master Plan before any monies could be allocated for a development trust fund which would be governed by the CRA. Once a plan had been approved by the Council, it would be similar to the Council establishing zoning in that landowners within the area would have to conform to the plan--there would be no negotiation. Unless Mr. DiVosta negotiated a change with the Redevelopment Committee before they approved a plan, he would also have to conform. The longer a decision is delayed the more the landowners will charge for their property. Also, one of the reasons for establishing a CRA is to attract joint venture partners who are profit motivated. The other developers mentioned are private sector interests and any money made by them would go into their pockets, while CVF is a not-for- profit organization, and any money made over and above operating costs will go to sustain the Art Institute. During a discussion of whether an art institute would be the right draw for the project, Professor Landrum reminded the Committee that their consultant, PMG Associates, had found a demand for the art institute, and that an ACLF corporation would be attracted to the project by the CRA. Jim Pilz spoke and recommended to the Council that they start a CRA right away and select a manager who has had experience in and been suc�essful in operation of a CRA. Mayor Mackail questioned how this project could work as proposed by Mr. Benjamin when he had stated this project was too expensive for private interests. Mr. Benjamin replied a developer would be blackmailed at every turn since he would have no condemnation powers, and explained the reason Redevelopment Committee Meeting Minutes July 22, 1994 Page 6 ------------------------ he could provide the cash flow was that he has already worked out a phasing plan. In response to Mayor Mackail's statement that Mr. Benjamin should have $3 million in hand from the institute so that the Village would have no risk, Mr. Benjamin stated he would accept that condition. Mr. Collings stated he sits on the North County Redevelopment Committee, and the redevelopment problems exist in coastal communities where traffic flow has gone to I-95 and away from US Highway One. He commented that he felt the art institute would be a tremendous magnet, however felt the Committee should reflect on what had been said at this meeting before making a decision. In answer to Mayor Mackail's question as to the not-for- profit status of CVF, Mr. Benjamin responded that it was in process. Village Manager Bradford asked the Committee to consider establishing October 1, 1994 as a deadline for the absolute latest date the Committee would make its recommendation to Mr. Benjamin's request for CRA. There is a December l, 1994 deadline with Palm Beach County for the library. Both Mr. Capretta and Mr. Collings responded October 1 would be too late and the consensus was to establish September 22, 1994 as the deadline date. V. COMMUNICATIONS FROM CITIZENS Al Demott expressed his view that Tequesta is a good place to live and stated he was tired of hearing Tequesta downgraded. He recommended that the Redevelopment Committee give very serious consideration to establishing a CRA. Mr. DeMott voiced his concern that Tequesta might lose Lighthouse Gallery, and stated Tequesta needs Lighthouse Gallery, the library, and BRITT, and if those projects could be started he believed the people would support fundraising for the redevelopment plan. Mayor Mackail responded that he believed the Council should set a leadership role, establish goals and objectives, and� would like to see a cultural center for residents, and under no circumstances should let Lighthouse Gallery and BRITT move from Tequesta. Mr. Milbank voiced concern over declining real estate values and stated he had seen a similar project at Dana Point, California, which he was very excited about and urged the Redevelopment Committee Meeting Minutes July 22, 1994 Page 7 ------------------------ Committee to find a way to work with Mr. Benjamin. Michelle McDonald urged the committee to move forward and to handle this matter without egos. Dottie Campbell stated her concerns over financing for this project, and excessive curb cuts on U.S. One. She stated two reliable people, Divosta and Van Brock, were ready to develop low-cost housing ta attract minorities to integrate the schools naturally so that children would not have to be bussed. She stated BRITT and Lighthouse Gallery had been glossed over, and wondered what .would happen to their present facilities when they moved. She questioned whether the people working under the CRA would be charged with fiduciary responsibility. She stated she would send a letter settinq out her concerns. Mr. Capretta stated the Council would need to accept the core assumption that if a CRA provided land for an art institute that it could really be built and then would really be self-sustaining. Mr. Pilz contributed the idea that the art institute would not have to be the only magnet. He stated an ACLF would not move here without a plan that was going forward. Mr. Shannon stated this plan is objectionable to St. Jude's. Land designated for a church car park was not large enouqh to accommodate church parking and ten acres designated in the plan had been dedicated in gerpetuity for preservation of three scrub jays. Also, when the church was built, a decision was made for a roadway coming off of Village Boulevard which would come down the western portion of the property and could be continued to the south along the western border of the church and could connect and go south, which allowed the Village to acquire the roadway at little cost. Mr. Shannon stated that this had not been considered in Mr. Benjamin's plan. He stated he agreed with Mrs. Campbell as to the development of these tracts. VI. ADJOURNMENT Mr. Collings moved that the meeting be adjourned. Co- Chairman Capretta seconded the motion. The vote on the motion was: Redevelopment Committee Meeting Minutes July 22, 1994 Page 8 ------------------------ Ron T. Mackail - for Joseph Capretta - for Earl L. Collings - for The motion was therefore passed and adopted and the meeting was adjourned at 11:16 A.M. ' �°� Respectfully submitted, . .. , � � T �o e *r � � M1i � �� �L.! �. ��l. �- l �``/ (\' (__ �`'�'-- '1 1 ��.� ,�. ' t� / 1 Betty Laur Recording Secretary ATTEST: ann Mangani lo Village Clerk DATE APPROVED: �.�.w�� �3 � , i 9 9 �