Okaloosa County BOCC — May 19, 2015 — April 21, 2015 Regular Meeting — reading text

Exhibit B 1is the Utilities Cost Split Agreement. Mr. Goodwin made motion, seconded by Mrs. Ketchel, to approve the amended lease as recommended by staff. 5 yeas. PUBLIC WORKS - CONSIDERATION OF ORDINANCE CREATING A CRAB ISLAND EMERGENCY VESSEL CORRIDOR Mr. Jason Autrey, Public Works Director, referenced a letter to Commissioner Windes from Representative Matt Gaetz requesting consideration of an ordinance establishing a corridor for emergency response vehicles at Crab Island. He sought direction on whether or not to pursue an Emergency Vessel Corridor Ordinance and assoclated state permits. Mr. Windes stated at the town hall meeting in which the topic of Crab Island was discussed, the consensus of those in attendance thought establishing an emergency vehicle corridor at this location was a good idea. Mr. Windes said it will be a small step in establishing order, noting the City of Destin is in agreement. Mr. Windes made motion, seconded by Mrs. Ketchel, to April 21, 2015 -11- Minute Book 72, Page 265 Okaloosa County Board of County Commissioners establish a safety lane approximately 20 feet wide through Crab Island laid out with assistance from: the Destin City Manager, a representative of the Okaloosa County Sheriff’'s Office, a representative of the Destin Coast Guard Station, a representative of the Florida Wildlife Commission, Interim FPacilities Maintenance Director James Puckett, and himself. Continuing, Mr. Windes said the safety lane proposal is to be brought back to the Board for approval of an ordinance at a future meeting. Upon inquiry by Mr. Goodwin, Mr. Autrey stated there is little cost for the permits. The costs for materials and labor to establish the corridor will be submitted when the item is again before the Board for adoption. Mr. Goodwin asked if TDD funds can be used since this is tourist related. Mr. Stewart replied that is a possibility and he will have a firm answer when the ordinance is brought forward. Destin City Council Member Prebble Ramswell stated it is clear the public wants this, expressing concern about the increasing inability of emergency vehicles to respond to the area. She reported the Destin Fire Control District Chief is completely on board with the proposal and will provide a fire boat at the proper time. The vote was taken on the motion—5 yeas. PUBLIC WORKS - REQUEST FROM DBR ENTERTAINMENT PRODUCTIONS FOR A COLLATERAL ASSIGNMENT OF LEASE/LANDLORD’S WAIVER Mr. Autrey stated he has received a request from Attorney Jeff McInnis, representing DBR Entertainment Productions, for a Collateral Assignment of Lease/Landlord’'s Waiver for the property 1lease on Okaloosa Island being developed as Wild Willy’s Adventure Zone. Mr. McInnis stated his client is within a few weeks of opening Wild Willy’'s, saying the project has come to almost total completion. He noted that inspections were held last week. The property has a 16,000-square foot building, 171 parking spaces, parking 1lot 1lighting, landscaping and stormwater facilities. Additionally, the eastbound turn lane has been upgraded. Mr. McInnis reported Wild Willy’s will create 75 new summer jobs. Continuing, Mr. McInnis stated they are asking for approval of a collateral assignment of the lease with Centennial Bank. He April 21, 2015 -12- Minute Book 72, Page 266 Okaloosa County Board of County Commissioners pointed out his client has put $6 Million in this project and needs a $900,000 loan for equipment and furniture to complete the project. Mr. McInnis assured the Board “this is not a mortgage on your dirt.” He said under the terms of the document the bank will not interfere or get involved in business unless there is a default. If a default should occur, the bank will take over the lease and must observe the terms of the lease. Mrs. Ketchel expressed concern of what might happen if there was default. Mr. McInnis stated the bank would have to operate under the terms of the existing lease, pointing out the lease is restricted to a family entertainment complex. Mrs. Ketchel asked what will happen 1if the Board does not approve the assignment. Mr. McInnis replied that it does not mean the project will not be finished but could delay the opening while making other financial arrangements. Mrs. Ketchel felt the arrangement to be awkward and could set an unusual precedent. Mr. Boyles commented that he believes there is precedent already established with the assignment of hangar leases at the airports and in other areas. Mr. Stewart clarified the assignment 1is to the improvements and not the “dirt.” Mr. McInnis confirmed Mr. Stewart’s explanation to be accurate. Mr. Harris echoed Mrs. Ketchel’s concern. He questioned a $6 Million expenditure but needing collateral for $900,000 and requested additional explanation. Mr. Harris also was concerned about who the bank might select to run the operation in case of default, saying the county could lose control. Mr. McInnis stated the bank would have the same commitments as the current lessee. He added the Board can enforce the lease. Mr. Goodwin said he understands collateral assignment and if Mr. McInnis‘’ client walks, it does not relieve them of their obligation. Mr. McInnis agreed. Mr. Windes said he felt the Board put its best foot forward when it extended the lease ten years and he has a problem with this request. He advised that he cannot support it. Mr. Boyles stated he voted in opposition to the lease extension; however, this 1is a separate matter. He noted this 1is the commercial standard and will support the request. April 21, 2015 -13- Minute Book 72, Page 267 Okalocosa County Board of County Commissioners Mr. Goodwin remarked this is not a strange financing scenario and it 1is quite common. He was of the opinion it 1is a reasonable business decision. Mr. Harris appreciated the insight, saying he did not know what to do but said he understands it is *“plain wvanilla.” Mrs. Ketchel asked Mr. Stewart if the requested collateral assignment is "“plain wvanilla.” He responded that he is not sure it is, saying there 1is a different twist because this is public property. Mr. Goodwin had a point of clarification and asked if the bank would have any greater right to assign than the current lessee. Mr. Stewart replied it would be subject to Board approval. He added the Board knows who it’s dealing with today but would not know with the bank. Discussion continued. Mr. Harris stated the current lessee has invested $6 Million and we are quibbling about $900,000. Mr. Goodwin made motion, seconded by Mr. Harris, to approve the request and authorize the Chairman to execute the Collateral Assignment. 3 yeas, 2 nays. (Mr. Windes and Mrs. Ketchel voting no.) RECESS - The meeting was recessed at 7:35 p.m. and reconvened at 7:42 p.m. GROWTH MANAGEMENT - MEMORANDUM OF AGREEMENT FOR TRANSIT COOPERATIVE Mr. Elliot Kampert, Growth Management Director, presented a Memorandum of Agreement for a Transit Cooperative which has been signed by the Cities of Crestview, Fort Walton Beach, Niceville, Destin, and Cinco Bayou. He said last year it got “lost in the weeds” because of the formula for costs, noting that is not in this document. Mr. Boyles stated staff’'s recommendation includes the appointment of a commissioner as the Board’s representative to the Cooperative. Mrs. Ketchel made motion, seconded by Mr. Harris, to approve the Memorandum of Agreement; Mrs. Ketchel assented to serve as the Board’'s representative to this Cooperative. Mr. Goodwin asked if the two issues may be separated. Mrs. Ketchel made motion, April 21, 2015 -14- Minute Book 72, Page 268 QOkaloosa County Board of County Commissioners seconded by Mr. Harris, to approve the MOA for the Transit Cooperative. 4 yeas, 1 nay. (Mr. Goodwin voted no.) Mr. Windes made motion, seconded by Mr. Harris, to appoint Mrs. Ketchel as the Board's representative to the Transit Cooperative. 5 yeas. GROWTH MANAGEMENT - REIMBURSEMENT OF AFFORDABLE HOUSING TRUST FUND, DISPOSITION OF TWO VACANT PARCELS Mr. Kampert explained that in 2007 the Okaloosa County Community Development Corporation (CDC) wused State Housing Incentive Partnership (SHIP) funds to purchase 66 lots 1in The Pines Subdivision and Triple Lakes Estates to be used for a home ownership project. Because of the recession and collapse of the real estate market, two of the lots (Lots 21 and 22 in Block 8) in The Pines Subdivision remain undeveloped. Mr. Kampert stated there was a three-year limitation on using those funds and it should have been wrapped up in 2010. He said CDC needs to bring resolution and close the books on this issue. CDC has determined the most appropriate action is for CDC to reimburse the county’s Affordable Housing Trust Fund the current quick sale value of the lots with the difference between the current value and the original acquisition price being recorded as a negative recapture in the FY 2014-15 SHIP Annual Report. A letter from J. Watts Properties attached to the CDC request puts the quick sale value for the lots at $1,500 to $1,700 each. The agenda request 1s for the Board to approve CDC’'s reimbursement to the county’s Affordable Housing Trust Fund in the amount of $3,000 ($1,500 for each 1lot) and that CDC be authorized to file the necessary reports with the Florida Housing Finance Corporation. Mr. Goodwin stated this 1is basically a business transaction to deal with an economic reality. Mr. Harris made motion, seconded by Mrs. Ketchel, to approve the staff recommendation. 5 yeas. GROWTH MANAGEMENT - OKALOOSA NATIONAL MINI GOLF CLUB Choctaw Engineering, on behalf of owner Beachmark 1Inn, is requesting approval of Okaloosa National Mini Golf Club, a proposed two-course, 18-hole mini golf course with one-story, 400-square foot combination ticket/concession/bathroom building. The property contains 0.63 acre and is located north of Santa Rosa Boulevard and South of Angelfish Avenue on Okaloosa Island. April 21, 2015 -15- Minute Book 72, Page 269 Okaloosa County Board of County Commissioners Mr. Kampert stated these are the final site plans but there is one outstanding issue which involves the 1lighting plans. He said it does not specifically state use of dark sky lighting. Mr. Kampert said owner Vince Bruner will submit an amended lighting plan with the dark sky lighting fixtures. He advised Growth Management can post the Notice of Intent to issue a Development Order, subject to submission of the amended dark sky lighting plan. Mrs. Ketchel made motion, seconded by Mr. Goodwin, to approve the development plans for the Okaloosa National Mini Golf Club subject to submission of the amended dark sky lighting plan. 5 yeas. JUNE 16, 2015 MEETING TIME CHANGED It was noted the June 16 meeting is an evening meeting. Because many of the commissioners will be traveling to conference, it was recommended the time of this meeting be changed to 8:30 a.m. Mr. Harris made motion, seconded by Mrs. Ketchel, to change the time of the meeting on June 16 to 8:30 a.m. 5 yeas. OLD BUSINESS - UPDATE ON BUDGET PRESENTATION MATERIALS Mr. Hofstad stated the sample template to be used for this year’s budget presentation is a work in progress and changes will continue to be made. Direction was given to re-tool the presentation of the budget to provide better transparency. A mock-up of the proposed budget was provided. The format includes a summary of the department’s requested appropriations by operational function in addition to the program and performance details. Mr. Boyles advised that no action 1is required tonight. He commented they have been in discussion with the Clerk’s Office on how to move forward from here. Mr. Boyles remarked it is a good step to provide more information to the commissioners and to the public. PUBLIC COMMENTS There were none. April 21, 2015 -16- Minute Book 72, Page 270 Okaloosa County Board of County Commissioners ADJOURNMENT There being no further business to come