Fort Walton Beach Council agenda — 06-22-2010 Regular — reading text

87 Council Meeting, June 22, 2010 7. SIGNATUFJ: BLOCK: 7. 1 Submitted By:.---- ,..', nAt',_ Michael D. Beedie, P. E. Engineering & Utility Services Director 7. 2 Reviewed and Concur: ( Brandy Wunker, Finance Director 7. 3 Reviewed for Agenda: bert T. Mearns City Manager 88 Council Meeting, June 22, 2010  BOARD OF COMMISSIONERS OF THE FORT WALTON BEACH COMMUNITY REDEVELOPMENT AGENCY JUNE 212010 INTRODUCTION A regular of the Board of Commissioners of the Fort Walton Beach Community meeting Redevelopment Agency was held on Wednesday, June 2, 2010, at 5:30 p. m. in the Council Chambers of City Hall with the following members present: Doug Reed, Vice -Chairman; Jenna Caldwell; Dean Covey; Daike Klement; Martin Owen; Doug Pike; and Tom Tona Also Present: Michael Beedie, Engineering /Utilities Director; Tim Bolduc, Development Services Manager; Toni Craig, City Attorney CALL TO ORDER/ PLEDGE OF ALLEGIANCE The Vice -Chairman called the meeting to order and led in the Pledge of Allegiance. APPROVAL OF AGENDA Mr. Beedie requested that Item 5. 1. 4, Discussion of Remaining FY 2009 -10 Capital Improvement Budget, and Item 5. 1. 5, Discussion of Proposed FY 2010 -11 CRA Budget, be combined for discussion. Mr. Reed requested that at the next meeting Staff update the Board on Landmark Center. Mr. Covey moved to approve the agenda, as amended, as the business of the day. Mr. Pike seconded motion and it carried unanimously with Caldwell, Covey, Klement, Owen, Pike, Reed, and Tona in favor. MINUTES Mr. Covey moved to approve the May 5, 2010 minutes. Ms. Klement seconded motion and it carried unanimously with Caldwell, Covey, Klement, Owen, Pike, Reed, and Tona in favor. ELECTION OF OFFICERS Mr. Covey nominated Doug Reed to serve as Chairman for the remainder of the calendar year 2010. As there were no further nominations, the vote for Doug Reed to serve as Chairman for the remainder of the calendar year 2010 carried unanimously with Caldwell, Covey, Klement, Owen, Pike, Reed, and Tona in favor. Ms. Klement nominated Jenna Caldwell to serve as Vice -Chairman for the remainder of the calendar year 2010. As there were no further nominations, the vote for Jenna Caldwell to serve as Vice -Chairman for the remainder of the calendar year 2010 carried unanimously with Caldwell, Covey, Klement, Owen, Pike, Reed, and Tona in favor. SOUND SIDE INTERLOCAL AGREEMENT Consideration of Interlocal Agreement to Fund the Infrastructure for the Sound Side Affordable Housing Development. Michael Beedie, Engineering & Utility Services Director, gave the history of the Sound Side project and provided a draft Interlocal Agreement between the City, the CRA, the Fort Walton Beach Housing Authority, and the Sound Side Apartment Homes, LLC, to fund the infrastructure for the project. Mr. Beedie advised if approved by the CRA Board, the Agreement will be presented to the Housing Authority Board of Commissioners on June 3 and the City Council on June 8. Mr. Beedie presented the Board with a revised agreement which included changes in the provisions of the payment of the special assessment, if needed, and the payback schedule. Page 1 of 5 89 Council Meeting, June 22, 2010 CRA 06/ 02/ 10 SOUND SIDE INTERLO(: AL AGREEMENT (CONT) Discussion included the 30 -year payoff of the special assessment and that if the CRA is dissolved or the Agreement otherwise expires before the full assessment is paid, assessment payment shall be to the benefit of the Citty and be paid into the City' s general fund, or otherwise be consistent with the City' s financial policies and procedures. Tim Bolduc, Development Services Director, further advised that if payments are made as expected, the assessment will be paid off in approximately 24 years. The City Attorney discussed three unresolved issues from the position of the Housing Authority' s attorney: The issues included 1) Paragraph 6 a, changing $ 119, 000 per year to $ 108, 000 per year; 2) changing the 2 0/o interest rate; and 3) Paragraph 8, Item ii, changing the wording from 1200,000 shall be distributed to HUD" to 1200,000 shall be distributed to the City." The City Attorney wanted to make it clear that there is not a complete agreement from the viewpoint of the Housing Authority's attorney unless something is changed today. Mr. Beedie advised the $ 119, 000 and the interest rate have been agreed to by the Housing Authority, and the City is awaiting clarification on why the attorney for the Housing Authority wants the money continued to be distributed to HUD. The City Attorney stated she is glad that two issues have been resolved, but having HUD involved is a serious issue because HUD would then have to be included as a party to the Agreement. Gail Sansbury, Executive! Director of the Fort Walton Beach Housing Authority, stated that the Housing Authority was notified by the attorney of the lender that based upon the procedures of HUD, this is how agreements are written and that they were going to notify the City Attorney and Staff on this, and that the attorney for the Housing Authority wanted to discuss the matter with the City Attorney. The City Attorney advised she received no phone calls or a -mails on the issue. Ms. Sansbury continued that the Housing Authority was fine with the agreement as written, but that they were informed yesterday that this is the way the money has to be distributed. The City Attorney stated this is a serious issue that must be resolved, and from the standpoint of the City and the CRA, she was not aware that HUD would be receiving the money and she does not believe Staff was aware of it either. Ms. Sansbury wanted to clarify the Housing Authority was fine with the way the agreement was originally written, and she just wants to ensure that the agreement is approved. Mr. Beedie advised the City has a deadline of July 15 and the interlocal agreement must be executed because there are funds that have to be distributed, and until it is executed nothing can be done. Mr. Bolduc explained this document has been changing on a daily basis and explained that the money is not being given to HUD; that the City is basically loaning funds to the Housing Authority to help close the gap in funding and show they have equity in the project and the ability to get the project done. Mr. Bolduc likened it to bringing money to closing when buying a home, and that HUD is to distribute to the appropriate parties at the appropriate time. Page 2 of 5 90 Council Meeting, June 22, 2010  06/ 02/ 10 SOUND SIDE INTERLOCAL AGREEMENT ( CONT) Mr. Bolduc asked the City Attorney whether it is possible to approve the agreement and instruct the CRA attorney to negotiate allocation of funds to either HUD or Sound Side in accordance with HUD requirements The City Attorney advised that both she and the CRA Attorney agree that no funding should go to HUD. She wanted to make it clear, for the record, that just because there is a time crunch that is not a reason to confiscate legal issues, and she stated on record she believes having a quandary on whether money gets distributed from the CRA to the City or the CRA to Sound Side or from the CRA to HUD is a huge issue for the City. With that being said, the City Attorney stated as long as the Board accepts the change that the funding shall be distributed to the City then they would be approving the agreement. Mr. Beedie stated his opinion that it is in the City's due diligence to contact HUD. He also commented that when Staff met with HUD last October this was not discussed, and he noted the uniqueness of the project. The City Attorney informed negotiations should be handled at the Housing Authority level and that Staff should not be working with HUD as there are eight attorneys working on the issue all ready, and that the City or CRA will do what they need to do. After further discussion, the Chairman advised there is still a lot of discussion and several options to consider, and asked if the Board wanted to move forward or set a date for a special meeting. Mr. Covey suggested a special meeting be held so further discussion regarding the contents of the agreement could be held. Mr. Covey moved to set a special meeting date on Wednesday, June 16, 2010 at 5: 30 pm. Ms. Klement seconded motion. Ms. Sansbury advised the application has to be submitted to HUD by June 15 before the rule change on July 15 and she hopes to hear something this week by HUD on whether they will accept it as written. Mr. Covey withdrew his motion. Mr. Pike moved to recommend to City Council approval of the Interlocal Agreement between the City of Fort Walton Beach, the CRA, the Fort Walton Beach Housing Authority, and Sound Side Apartment Homes, LLC as presented and as amended, contingent upon resolution of the funding agreement with HUD. Mr. Owen seconded motion and it carried unanimously with Caldwell, Covey, Klement, Owen, Pike, Reed, and Tona in favor. ORD. 1835 —PERPETUAL MAINTENANCE OF AREAS WITHIN THE CRA DISTRICT AN ORDINANCE OF THE CITY OF FORT WALTON BEACH, FLORIDA AMENDING THE FORT WALTON BEACH COMMUNITY REDEVELOPMENT AGENCY PLAN AND SETTING AN EFFECTIVE DATE. Mr. Beedie advised Ord. 1835 amends Section 11. 4. 1 of the CRA Plan, entitled Ongoing Installation and Maintenance of Public Infrastructure, establishes ongoing and continuous maintenance of all CRA funded projects and any public property, facility, and right -of -way within the CRA District. Page 3 of 5 91 Council Meeting, June 22, 2010 NOW 06/ 02/ 10 ORD. 1835 ( CONT) The Chairman opened the floor for public input. There was none. Mr. Covey moved to recommend approval of Ord. 1835 and it carried unanimously with Caldwell, Covey, Klement, Owen, Pike, Reed, and Tona in favor. DISCUSSION OF REMAINING FY 09 -10 CIP BUDGET Mr. Beedie presented a summary of the remaining FY 09 -10 CRA budget for capital improvement programs along with proposed reallocations to move forward with completing the projects, including $ 224, 096 from the Eglin Parkway Streetscape to completing the design and construction of new mast arm streetlights at the four corners of Hollywood Blvd and Eglin Parkway; $ 475, 000 from the Beal Parkway streetscape along Third Street and Carson Drive to completing the remaining phases of the Downtown