Community Redevelopment Agency

Community Redevelopment Agency (CRA) Meeting Minutes April 14, 2020 (APPROVED) This meeting was conducted virtually via tele conference in accordance with Executive Order No. 20-69, issued by the Office of Governor Ron Desantis on March 20, 2020, allowing municipalities to conduct meetings of their governing boards without having a quorum of its members present physically or at any specific location, and utilizing communications media technology such as telephonic or video conferencing, as provided by Section 120.54(5)(b)2, Florida Statutes. 4/14/2020 - Minutes 1. CALL TO ORDER & ROLL CALL Board Members present: Chair Robin Gibson, Mayor Eugene Fultz, Commissioner Goldstein, Commissioner Howell, Vice Chair Curtis Gibson. Staff Present: Kenneth Fields, CRA Director; Albert C. Galloway Jr, City Attorney; Jennifer Nanek, City Clerk; Karen Thompson, Assistant Director of the CRA Chair Robin Gibson called the meeting to order at approximately 6:00 p.m. Chair Robin Gibson read a statement: Pursuant to Executive Order No. 20-69, issued by the Office of Governor Ron DeSantis on March 20, 2020, municipalities may conduct meetings of their governing boards without having a quorum of its members present physically or at any specific location, and utilizing communications media technology such as telephonic or video conferencing, as provided by Section 120.54(5)(b)2, Florida Statutes. Procedures for public participation will be explained by the City Attorney shortly. Albert Galloway, Jr., City Attorney, read a statement on Procedures for Virtual Public Meetings. Mr. Galloway asked the Members, "are you comfortable with all the notice provisions set forth and these uniform rules of procedures we have established for this Virtual meeting? The members all answered affirmatively. 2. Minutes - March 10, 2020 The Chair recommended that an edit be added saying the Hops Shop and Stroll event was canceled. Mayor Fultz made a motion to approve the minutes of March 10, 2020 as amended. Commissioner Goldstein seconded the motion. By Voice vote: ALL "AYE" 3. Resolution 2020-02 Approval Of Sale Of The 1919 High School Complex To Lake Wales Charter Schools, Inc. [Begin Agenda Memo] SYNOPSIS: [Begin Agenda Memo] SYNOPSIS: The CRA Board will consider adopting Resolution CRA 2020-02, approving the Sale and Purchase of the 1919 High School complex and underlying real property by the Lake Wales Charter Schools. RECOMMENDATION It is recommended that the CRA Board take the following action(s): 1. Adopt Resolution CRA 2020-02. 2. Authorize the Executive Director to execute the contract. BACKGROUND The CRA currently holds title to the buildings and property commonly known as the 1919 High School complex. The CRA published notice of its intent to offer the subject property for sale and an offer to purchase was made by Lake Wales Charter Schools, Inc. (LWCS). Resolution CRA 2020-02, upon adoption, will 1) accept the proposed Contract; 2) approve the sale; 3) approve the acceptance of a Promissory Note and Purchase Money Mortgage; and 4) authorize payment of expenses related to the transaction. In February 2020, the CRA Board authorized the Executive Director to enter into negotiations with LWCS for the sale and redevelopment of the 1919 High School complex. Subsequent to that CRA meeting, staff has worked closely with LWCS and other stakeholders to ensure the intended redevelopment of the subject site into a Bok Academy North middle school campus is not only feasible, but in accordance with the adopted CRA Plan. Staff believes the proposal submitted by LWCS for the subject property meets the following CRA Plan goals: • The Agency shall identify community stakeholders and partners to assist in the implementation of the Redevelopment Goals, Objectives, and Projects • Preserve and maintain historic and architecturally significant structures within the redevelopment area Two state certified appraisals were obtained for the property with an average appraised value conclusion of $657,000. The detailed appraisals are attached to this memorandum. Cliggitt Valuation, Inc. provided a market value conclusion of $310,000 and Winningham - Pospichal, Inc. provided a market value conclusion of $1,005,000. The purchase price submitted by LWCS, Inc. is for $575,000. Prior to submission of a proposal, LWCS offered to purchase the property for $500,000, but through negotiations agreed to a final offer price of $575,000; the approximate median value between the original average appraised value. The proposal and associated Contract provide for Seller Financing through a promissory note in the amount of the purchase price, with a zero (0%) percent per annum interest rate for a twenty-year (20 yr.) term. The CRA-owned facility leased to the Boys & Girls club is included in this contemplated property sale. Staff has worked closely with representatives of the Boys & Girls club since the outset of the property sale discussion and feels the Boys & Girls club program can be relocated to the James P. Austin (JPA) Community Center. Representatives of the Boys & Girls club have agreed to relocate to the JPA Center if the sale is approved. The Albert Kirkland Gymnasium and Little Theater are not included in this contemplated sale and purchase; however, the parking lot that accommodates users of these facilities is included. A letter of understanding concerning joint use of the parking lot between LWCS and the City will be entered into subsequent to the sale to ensure parking is available to meet public needs. discussion and feels the Boys & Girls club program can be relocated to the James P. Austin (JPA) Community Center. Representatives of the Boys & Girls club have agreed to relocate to the JPA Center if the sale is approved. The Albert Kirkland Gymnasium and Little Theater are not included in this contemplated sale and purchase; however, the parking lot that accommodates users of these facilities is included. A letter of understanding concerning joint use of the parking lot between LWCS and the City will be entered into subsequent to the sale to ensure parking is available to meet public needs. OTHER OPTIONS The CRA may reject the proposal submitted by LWCS and direct the Executive Director to solicit additional proposals. FISCAL IMPACT The CRA will accept a Promissory Note in the principal amount of $575,000.00 payable in 20 annual installments of $28,750.00. The Note will bear interest at 0%. The CRA will be required to pay the statutorily required documentary stamps on the Deed in the amount of $4,025.00. [End Agenda memo] Jennifer Nanek, City Clerk, read RESOLUTION 2020-02 by title only. RESOLUTION CRA 2020-02 A RESOLUTION OF THE LAKE WALES COMMUNITY REDEVELOPMENT AGENCY APPROVING THE SALE OF PROPERTY COMMONLY REFERRED TO AS THE 1919 BUILDING TO THE LAKE WALES CHARTER SCHOOLS, INC. Kenneth Fields, Executive Director, reviewed this item. James Slaton, Deputy City Manager, reviewed the appraisals on the property. Kathy Bangley, Assistant City Manager, reviewed the steps and timeline that Bok Academy will go through to open the property to students by August. Andy Oguntola, Vice-Chair of the Lake Wales Charter Schools and President of the Chamber of Commerce, said that the Charter Schools are interested in using this property and is looking to invest millions to rehabilitate the property. This will help educate students and bring up property values in the area. Albert Galloway, Jr, City Attorney, reviewed recent changes to the contract. Mr. Galloway said the property had a reverter clause from when it was donated by the Polk County School Board and needs to be released. The attorney for the School Board is working on this and it should not hinder the sale. An alley needs to be vacated and this will be on the next City Commission agenda. OPENED FOR PUBLIC COMMENT CLOSED FOR PUBLIC COMMENT Mayor Fultz said it is time for the property to go to the Charter Schools so that students can be educated and the building can be used. Commissioner Curtis Gibson said the building has potential as he has toured it twice. Thats why he was adamant about protecting it from termites. He is glad we are coming to an agreement. This will improve that area. He is glad that it has been worked out with the Boys and Girls Club and that the Little Theater and Kirkland Gym will be left alone. We need to move forward on this. Commissioner Goldstein said this will benefit that area and our students. This move is a positive move. Commissioner Howell said she has questions on this that haven't been answered yet. Some things need to be in writing. She is concerned about sharing the parking with the Theater and Gym. None of her questions are political or personal. She wants to be sure this benefits our students. Chair Robin Gibson said there are differences between the proposal a few years ago. The Charter Schools are now willing to pay for the property. The Austin Center will be a better and bigger location for the Boys  Commissioner Howell said she has questions on this that haven't been answered yet. Some things need to be in writing. She is concerned about sharing the parking with the Theater and Gym. None of her questions are political or personal. She wants to be sure this benefits our students. Chair Robin Gibson said there are differences between the proposal a few years ago. The Charter Schools are now willing to pay for the property. The Austin Center will be a better and bigger location for the Boys and Girls Center. The property is now owned by the CRA instead of the City which allows greater flexibility in selling the property. This is a great opportunity. Commissioner Curtis Gibson recommended a fence behind the Austin Center to keep students from going into the lake. Chair Robin Gibson said this will lead to improved contributions to the CRA. Commissioner Goldstein said he supports all education. This is a plus for Lake Wales students. Commissioner Howell made a motion to adopt RESOLUTION 2020-02. Commissioner Curtis Gibson seconded the motion. By Roll call vote Commissioner Howell "YES" Commissioner Curtis Gibson "YES" Commissioner Goldstein "YES" Mayor Fultz "YES" Chair Robin Gibson "YES" Motion passed 5-0. 4. EXECUTIVE DIRECTOR'S REPORT Kenneth Fields, Executive Director, said they will work with the Charter Schools to complete this project in a timely manner. Mr. Fields said that other CRAs are looking into ways to help business during this current COVID19 crisis. They will investigate what CRAs can legally do. He will get a report to the board. Mr. Fields said Dover Kohl is continuing to work on the downtown project. We may need to wait on public input or find a safe way to do that. 5. COMMUNICATIONS AND PETITIONS No public comments. Chair Robin Gibson said that the CRA is about Historic Preservation. He mentioned that the Preservation Magazine has an article on Spook Hill. Commissioner Goldstein thanked the Board and staff for getting this project done. Chair Robin Gibson said this virtual meeting went smoothly. This was an improvement over the previous one. He commended the IT staff for their hard work.. 6. ADJOURN The meeting was adjourned at 6:53 p.m.  6. ADJOURN The meeting was adjourned at 6:53 p.m. ____________________________ Chair/Vice-Chair ATTEST: ____________________________ City Clerk/Deputy City Clerk