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HomeMy WebLinkAboutDocumentation_Regular_Tab 05B_08/30/1994 � ;��� , VILLAGE OF TEQUESTA � Potit Officc Boz 3273 • 357 Tcqucsca prive ''�' Tcyues�,a, F7orida 33469-0273 • (�107) 575-6200 � � ° Fax: (407) 575-6203 `s o o, � • �N GOV«�y . VILLAGE OF TEQUESTA REDEYELOPMENT C4MMITTEE MEETING S JiJLY 22, 1994 r. ca�, To oRn�t Arm itor�. c� 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 AGEND� Committee Ide�anber Collings moved that the Agenda be approved as submitted. Co-Chairman Capretta seconded the �otion. The vote on the motion was: Ron T. Mackail - for Joseph Capretta - for Earl L. Collinqs - for _ The sotion vas therefore passed and adopted and the 2iqenda �ras approved as sub�itted. III. CONSIDLRATIQN OF R'�STl�i ��OA� REDEVSLOP�IENT PROPOSl�IL. Villaqe l�ianager Bradford explainec� Mr. Joe Benja�in had made a red�velap�erit proposa� fio the Villaqe on March 1, 1994. The Village had hired a consult�nt 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 Reeycled Paper Redevelopment Committee Meeting Minutes July 22, 1994 Page 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 Village Foundation (CVF') in accordance with their master plan, and included a description of the principal changes to Christopher's Village ini�ial 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�-25g 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 financinq 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 aqreement showi.nq thst the cost of ,that bond conld b� covered by develope=s or others takinq part in this pio3ect. Since no one person or developer conld afford to take all of the risk to develop the whole area, l+Ir. Benjamin•s plan would be to neqotiate with each lando�mer under a CR1�. In response to Mr. Collings, 1Kr. Benja�in estimated 10$ of the land would �come non-taxable by movinq Yillaqe facilities Redevelopment Committee I�eetinq 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 increasinq the tax base; that if the Village 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 provid� ng 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 years. 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 providinq 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 couid be reversed by adoptinq 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 throuqh a CRA. l�ir. Benjamin commented his organization would provide a strategic plan for implementation of the master plan; however, the Council must first make the decision to implenent the plan. Capretta stated he was concerned with cash flow; and set forth the follo�inq scenario: If the first phase were to include the infrastructure {provided by NPBCWCD)�and public buildi�qs, the art institute, parking lots, etc. Enon-iACO�e produciilq facilities) vhen the ffrst interest payment came du� on the bonds where would the money come froa 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 housinq 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 institute, 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 workinq towards the goal of establishinq an art institute, spoke to clarify that $20 million was not for the purpose of buildinq Christopher�s Villaqe, 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• taxes would not increase as a result of this project since the fundinq mechanism would be tax increaent financinq under wh�ch the �axable value of the target area would� be frozen at today•s� t;osts, and the taxes on properti� in the tarqet area would increase only due to the improvements that would be made. These increases, or tax incre�ents, would be used to finance the project under a CR�i. Taxes for residents elsewhere in the Villaqe would increase over time only because the entire r Redevelopment Committee Meeting Ninutes 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 packets, 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 remindecl the Committee that their consultant, PMG Associates, had found a demand far the art institute, and that an ACLF corporation would be attracted to the project by the CRA. Jia Pilz spoke and recommended to the Council that they start a CRA riqht away and select a manaqer who has had experience in and been successful, in operation of a`CRi�. Mayor l�ackail questioned how this project could work as proposed by Mr. Hen jamin when he had stated this pro ject was too expensive for private interests. 1Kr.. Benjamin replied a developer would be blackmailed at every turn since he would have no condemnation powera, and explained the reason r Redevelopment Committee Keeting Minutes July 22, 1994 Paqe 6 ------------------------ he could provide the cash flow was that he has already worked out a phasinq 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 , Z-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 1, 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. cor�vxicATZOxs �xoK czTiz�s Al Demott expressed his view that Tequesta is a good place to live and stated he was tired of hearinq 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 Liqhthouse Gallery, the library, and BRITT, and if those pro jects could be started he believed the people would support fundraisinq for the redevelopment plan. Mayor �ackail responded that he believed the Council should set a leadership role, establish qoals and objectives, and would like to.see a cul��ral center for residents, and under no circ�stances should let Liqhthouse Gallery and BRITT move fron Tequesta. , ![r. I+�ilbank voiced concern over declininq 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 IKeeting Minutes July 22, 1994 Page 7 ------------------------ Committee to find a way to work with Mr. Benjamin. Michelle KcDonald 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 to 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 setting 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. Kr. 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. I�r. Shannon stated this plan is objectionable 'to St. Jude's. Land designated for a church car park was not large enough to accommodate church parking and ten acres designated in the plan had been dedicated in perpetuity for preservation of three scrub jays. Also, when the church was built, a decision was made for a roadway coming off of Villaqe Boulevard which would come do�n the western portion of the property and could be continued to the south alonq the western border of the church and could connect and qo south, which allowed the Village to acquire the roadway at little cost. Mr. Shannon stated that this had not been considered in I�irr. Benjamin's plan. He stated he aqreed with Mrs. Camp�ll as to the development of these tracts. VI. AD�TOIIR�NT . Hr. Collings �oved that the spetinq be adjourned. tb- Chairman Capretta seconded the motion. T3ie vote on the motion w�s: r � Redevelopment Committee Meeting Kinutes July 22, 1994. Paqe 8 ------------------------ Ron T. l�iackai� - for Joseph Capretta - for Sarl L. Collings - for The motion was therefore passed and adopted and the meeting was adjourned at 11:16 T�.1K. � Respectfully submitted, ��� � Betty Laur Recording Secretary ATTEST: Joann Manganiello Village Clerk DATE APPROVED: