lake worth beach cra logoLAKE WORTH COMMUNITY REDEVELOPMENT AGENCY
REGULAR MEETING
HATCH 1121
1121 Lucurne Ave.
Tuesday, November 12, 2019 | 6:00 P.M.

 

 

I. ROLL CALL:

The Recording Secretary called the meeting to order at 6:00p.m. on the above date at HATCH 1121, Lake Worth, Florida.

Present were CRA Members Brendan Lynch, Tom Copeland, Brent Whitfield, John Paxman, Mark Rickards & Leah Foertsch.
Also present was CRA Director, Joan Oliva.

Vice Chair Rickards acted as Chair for this meeting.

Commissioner Drew Bartlett was sworn in as a new Commissioner of the CRA Board.

II. PLEDGE OF ALLEGIANCE:

III. AGENDA – ADDITIONS/DELETIONS/REORDERING:

Action: Motion made by Mr. Paxman to approve the CRA meeting agenda seconded by Mrs. Foertsch.

Vote: All Ayes

IV. PUBLIC PARTICIPATION ON NON-AGENDAED ITEMS (3-minute limit):

William Feldkemp - I could not find a copy of the agenda on the internet today. The developers of the 11 parcels were asked to come back before the Board for an update at the October meeting. The October meeting was moved to this evening but I don’t see them here. Will they be giving an update? I was hoping to get some information on the RFP regarding moving the houses. Also, has the demolition contract been finalized?

Chair stated that there is an item on the consent agenda to approve a demolition contract

V. PRESENTATION AGENDA:

a. 1000 Lake Avenue Update
Mr. Bhavin Shah and Mr. Juan Contin gave the Board an update on the progress of the1000 Lake Avenue project.

VI. ACTION AGENDA:

a. Budget Amendment
b. New Downtown Trash & Recycling Receptacles – Approve Change Order #3
c. Demolition, asbestos removal and lot clearing of 3 structures

Action: Motion was made by Mr. Whitfield to approve the consent agenda seconded by Mr. Paxman.

Vote: All ayes

VII. ACTION AGENDA:

a. Purchase of Privately Owned Property at 509 Lake Avenue
Action: Motion was made by Mr. Whitfield to appoint Mr. Lynch as Chair seconded by Mrs. Foertsch.
In December 2016, the CRA established a $4M line of credit (LOC) with PNC bank for the purpose of acquiring property within the CRA District. In 2017, the LOC was increased another $1.5M. Since then, the CRA, with assistance from the City and our brokers, Anderson and Carr, purchased nineteen properties, providing for assemblages along both Lake and Lucerne, Dixie Highway and Downtown.

To date, two downtown assemblages are in the planning stages for future development. One is located between South “L” and “M” Streets and the other at South “K” and 1st Avenue South. While the plan for the lots at South “K” and 1st Avenue South are still being contemplated by the City and CRA, both entities have agreed to advertise a Request for Proposal (RFP) for a mixed-use development project to provide much needed downtown housing, new retail spaces and parking to accommodate the project. At this time, the City and CRA are working together to relocate five contributing structures currently located between 24-32 South “L”. The City will be moving 17 S. “M” to a city-owned parcel to house City Staff within the next six-nine months. The remaining three, non-contributing structures are to be demolished.

An opportunity has arisen, not only to make the assemblage larger, but also to add frontage along Lake Avenue, making any proposed project even more attractive and valuable. For over six years and continuing today, the old “Havana Hideout” location at 509 Lake sits idle and continues to be a blight in the downtown. 509 Lake Avenue is also located next to a City owned building that formerly served as the Chamber of Commerce building. The City purchased the building in 2016 for $250K. It is currently housing the Recreation and Events department. Earlier this year, the voters approved a referendum allowing the City to sell 501 Lake Avenue.

With the purchase of 509 Lake, comes the opportunity to again partner with the City for the purchase of 501 Lake. Although the details are yet to be written out, the City has agreed to work with the CRA to allow us to add both properties to the assemblage. This would result in an assemblage measuring 1.67acres. Depending or not if a developer applied for TDR units, a development with the addition of these two properties could produce anywhere from 80-97 units versus the original 60 anticipated. Because height is limited and both retail and parking are required, it would be difficult to get to the 97 number but it does allow a developer to be creative in developing a product that will raise values in the downtown and act as a long-needed catalyst for sustainable growth.

The purchase of 509 Lake Avenue, its incorporation into the “L” and “M” assemblage and the issuance of an RFP requires several steps including:

1. Board approves the execution of a contract for the site with Pelican 509
2. CRA Board receives approval for financing from PNC bank
3. CRA Board approves financing with PNC bank for re-fi (possible) and additional debt
4. CRA closes on 509 Lake Avenue
5. CRA and City agree on the purchase of 501 Lake Avenue and a closing takes place before or near January of 2020
6. The CRA facilitates the moving of the five contributing historic buildings on “L” Street
7. The CRA issues an RFP for 9 properties vs the 7, as originally discussed
8. Proceeds of the sale of the property, if a Proposal is accepted and an agreement executed, will repay the City and a portion of the CRA costs to purchase

Anderson and Carr, along with CRA Staff and attorney, have worked on the content of this contract for over one year. As always, we will collaborate with the City to address the obvious code issues while preparing the site for redevelopment. Anderson and Carr’s value analysis is included for Board review. Also included, is the contract between the Lake Worth Beach CRA and Pelican 509.

Staff requested the Board authorize the purchase of 509 Lake Avenue dependent on receiving financing from PNC bank and execute the provided contract.

Action: Motion was made by Mr. Paxman to authorize the purchase of 509 Lake Avenue dependent on receiving financing from PNC bank and execute the provided contract seconded by Mr. Copeland.

Vote: All ayes

b. RFP for North Dixie Highway and 17th Avenue North
In June of 2019, the CRA advertised a Request for Proposal (RFP) for the 2.29 acre property located at North Dixie Highway and 17th Avenue North. Originally, the deadline for responses was September 4. After receiving interest from several different developer groups, we extended the deadline until October 4th to allow more time for submittals. Although interest seemed high, we received only one response by the due date.

As a reminder, this property is located just north of the MID development. The CRA purchased these three properties for $2.6M over the course of six months and completed a unity of title and demolition to make the property shovel ready. Because the site is next to a new 230 unit mixed-use development and near 59 new single-family homes off 19th, the property, it would be ideal for either a mixed-use or commercial purpose. Several developers alluded that retail would be the best use, in their opinion.

What Staff received was a nice, mixed-use development proposal for up to 75 apartments and approximately 6500 sq. ft. of commercial use. The rendering for the propose project is more than acceptable, however, the proposing firm only offered $375K for the site.

Because of the low offer and the lack of proposals, Staff is recommending the Board decline the offered proposal and direct Staff to re-advertise the RFP later. Staff further recommends the RFP be advertised after development of the MID is started and we modify the way we advertise for property development. Staff will try new methods to draw a greater array of interest.

Staff recommended the Board not accept the proposal submitted for RFP #02-1819 and direct Staff to re-advertise after the beginning of the new calendar year after the MID has begun construction.

Action: Motion was made by Mr. Rickards to not accept the proposal and re-advertise the RFP at the beginning of next year seconded by Mr. Whitfield.

The responders of the RFP, Deco Green, made a presentation to the Board about their project and timetable.

Legal Counsel stated that we could modify the new RFP and add the opportunity for Developers to be creative.
Staff stated that Dixie Highway is mixed use development. There are also brand new design guidelines that can be incorporated into the RFP response. Staff preferred to leave the RFP open. Staff thought that retail would make more sense because the MID is building 240 units right next door.

Vote: All ayes

VIII. EXECUTIVE DIRECTORS’ REPORT:

a. Progress Report

IX. BOARD MEMBERS’ COMMENTS:

Tom Copeland- Welcomed Drew to the Board. Presented a summary to the Board of the Florida Redevelopment Association Conference in October.
Leah Foertsch- Great Day of the Dead event. It was packed.
Drew Bartlett- Bought a house on L Street with his wife and started a job at the South FL Water Management District. He wanted to give back to the community so with the help of Chris Pettit he was appointed to the CRA Board.
John Paxman- Welcome Drew.
Brent Whitfield- Congrats on the FRA awards. The mural map brings in the branding. Great job on the Day of the Dead Event. Since we have two RFPs coming out maybe we should have a workshop before we see any presentation.
Mark Rickards- Welcomed the new board member. Congrats to Joan and Staff on two awards at the FRA. I liked seeing the plans for 1000 Lake Avenue.
Brendan Lynch- Welcomed Drew and thanked Staff.

X. ADJOURNMENT:

Meeting adjourned at 7:29 p.m.

Minutes Approved:

Brendan Lynch, Chair, CRA Board 

Emilia Theodossakos, Recording Secretary

 

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