Village Council Workshop

Village of Wellington 12300 Forest Hill Blvd Wellington, FL 33414 Action Summary - Final Monday, May 23, 2022 8:30 AM DIRECTIONS WORKSHOP -DAY 1 Wellington Community Center Village Council Workshop Anne Gerwig, Mayor Michael Drahos, Vice Mayor John T. McGovern, Councilman Michael Napoleone, Councilman Tanya Siskind, Councilwoman Village Council Workshop Action Summary - Final May 23, 2022 1. CALL TO ORDER Council Members present: Anne Gerwig, Mayor; Michael Drahos, Vice Mayor; John T. McGovern, Councilman; Michael Napoleone, Councilman; and Tanya Siskind, Councilwoman. Advisors to the Council: Jim Barnes, Manager; Laurie Cohen, Attorney; Tanya Quickel, Deputy Village Manager; Ed De La Vega, Assistant Village Manager; and Chevelle D. Addie, Village Clerk. Staff present: Laura Aldrich, Ana Acevedo, Robert Basehart, Daryl Boyd, Nicole Coates, Paulette Edwards, Michelle Garvey, Kim Gibbons, Charles Gill, Jeff Goldman, DJ Helkowski, Shannon LaRocque, Mike O’Dell, Anjuli Panse, Johnathan Reinsvold, William Silliman, Tim Stillings and Bruce Wagner. WELCOME AND KICKOFF Mr. Barnes welcomed everyone to the workshop. The Pledge of allegiance was performed. He gave some housekeeping rules and referenced the handouts. He introduced Dr. Kim DeLaney, Treasure Coast Regional Planning Council, facilitator. THE STATE OF THE VILLAGE Mr. Barnes showed Council a video of the State of the Village. Department Director Celebrations: Executive Management and the Department Directors provided overviews of was accomplished within the departments, programs and Village. Mr. Barnes provided wrap up comments. 2. PROPERTY UPDATE Dorothy Jacks, CFA, AAS, Palm Beach County Property Appraiser and Dino Maniotis, Palm Beach County Property Appraiser’s Office, were also in attendance. She conducted a PowerPoint regarding property values in Wellington. She reviewed 2021 Value information, Property Tax Cap Impacts, Trends for 2022. The tax roll is based on January 2021 Village of Wellington Page 1 Village Council Workshop Action Summary - Final May 23, 2022 which was utilized to set the 2022 values. Ms. Jacks indicated the 2022 data will be utilized to set the 2023 value. She discussed the 2021 Market and Taxable Value. She showed an additional chart that showed the parcel count in various categories. She referenced property tax caps for the year 2020 and 2021. Ms. Jacks highlighted the trends for 2022 and stated the Equestrian Sector is still strong. 95% of Wellington’s Agricultural Value is equestrian. Those properties are taxed at market value. She thanked Council and thanked Wellington for the COVID testing site and stated her staff has utilized it. Mayor Gerwig inquired about the condo category and data regarding out of state buyers. Councilman McGovern inquired about the cap. Councilman Napoleone inquired about the mall valuation. Mr. Stillings asked about the value of the mall triggering a change in the property. Ms. Jacks responded to all of the questions and stated she will provide data and statistics. 3. ECONOMIC UPDATE Mr. John F. Grady III, Managing Director, Public Trust Advisors, works closely with Ms. Quickel and her team. He discussed the Gross Domestic Product (GDP), the Labor Market-Non-Farm payrolls and unemployment rate. Florida’s unemployment rate is 3.2% compared to the nation’s rate of 3.6%. He discussed the median housing prices, mortgage rates and demand, principal and interest increase. He referenced the Consumer: consumer confidence, auto sales. The next topic was Inflation (Consumer Price Index and Gas Prices). Mr. Grady referenced the Bloomberg Survey Forecast - May 2022. He showed Yield Curves Scenarios and Economic Expectations. He referenced the Federal (FOMC) funds rate for June 2021 to March 2022. Federal Funds Rate expectations increase significantly. He highlighted the positive flow yield curve and rates and the Longer-Term Trend-Lower Rates from March 1990 to March 2022. Interest rates reached highest levels since 2018. He referenced the amount of negative interest rates bonds. Mr. Grady discussed the Operating Strategy Update. He said the Village has an Operating Portfolio and Capital Projects Portfolio. He discussed the Capital Projects Strategy Update. He summarized the Village of Wellington Investment Program. Then, he showed a Village of Wellington Asset Allocation Chart as of April 2022. Village of Wellington Page 2 Village Council Workshop Action Summary - Final May 23, 2022 Vice Mayor Drahos commented regarding the marketplace and statistics. He asked about the effect of COVID on the inflation rate. Councilman McGovern asked about the labor force participation rate and how people are supporting themselves. Mayor Gerwig asked how the Village is doing in comparison to other municipalities. Mr. Barnes commented regarding market rates. 4. ECONOMIC FORECAST Ms. Quickel stated Christine Wadleigh has joined the workshop via Zoom. She highlighted the Long-Term Financial Plan Purpose and Objectives and discussed the Long-Term Financial Plan Summary. She referenced the Financial Trend Analysis, Market Analysis, Revenue & Expenditure Forecast Reserve Analysis, Capital improvement Projects, Financial Policies, and Plans & Studies. Ms. Quickel also discussed the CPI and the impact we are seeing. She referenced the Municipal Cost Index (MCI). She explained the Forecast Assumptions and the 5-year Forecast of Revenues and Expenditures-General Fund. She also discussed the 5-year Forecast of Revenues and Expenditures-ACME Fund. Mayor Gerwig asked what is meant by rolling. Ms. Quickel stated the regular assessment no longer supports ACME and staff will review this further into the budget process. She then reviewed the 5-year Projections-Solid Waste Collection Fund. Ms. Quickel discussed the Preliminary Millage and Fund Balance Projection - General Fund FY 2023-2027. Staff’s concerns are the millage rates for fiscal years 2024, 2025 and 2026. Mr. Barnes stated there are many factors at play and Ms. Jacks and Ms . McIntosh projections are based on snapshots. He said Ms. Quickel and her team are reviewing the impacts of supply issues on the Village. He said staff needs to figure out a way of accomplishing business as usual. Mayor Gerwig commented about rates. Mr. Barnes spoke regarding LWDD and ACME. 5. FLORIDA'S ECONOMY Sean M. Snaith, Ph.D., Director of the Institute for Economic Forecasting at the College of Business, University of Central Florida discussed the Village of Wellington Page 3 Village Council Workshop Action Summary - Final May 23, 2022 Economic Outlook of Florida. He stated when the economy was shut down, the worst recession since the Great Depression followed COVID policies. There was Inflation (too many dollars chasing too few goods/products), High Oil/Gasoline Prices, Supply Chain Failures and Labor Market Shortages. He reviewed the U.S. Forecast for the years 2020-2024 in regards to Real GDP, Unemployment Rate, Payroll Employment, and Consumption. Mr. Snaith discussed the Florida Housing Market and the Palm Beach Housing Market. He referenced the mortgage credit availability index. In addition, he reviewed the unemployment rate in Florida and the United States, the Gross State Product, Florida Payroll Employment, 2022-2025 Averages Winter 2022 Forecast - Job Growth by sector, domestic leisure travel, etc. He discussed the Palm Beach Gross Metro Product, Unemployment Rate, Payroll Enrollment, Personal Income, Palm Beach County 2022-2025 Averages Winter 2022 Forecast - Job Growth. He referenced the Florida & Metro Forecast and U.S. Forecast. Mayor Gerwig thanked Mr. Snaith for his presentation. Vice Mayor Drahos commented about student loan forgiveness and its impact. Councilman McGovern asked why people have still not returned to work now that the stimulus payments are no longer happening. Mr. Barnes asked about home price appreciation based on new or existing construction. 6. STATE ROAD 7 CORRIDOR STUDY UPDATE SPORTS TOURISM Dana Little, Urban Design Director for the Treasure Coast Regional Planning Council (TCRPC), provided a brief update and overview of the SR-7 Village Market Study. He stated Wellington is missing a “downtown” and presented various schemes (Scheme A, Scheme B, Scheme C and Scheme D). He stated TCRPC is seeking input on schemes, for Council to authorize Market Data Update, for Council to authorize beginning Phase III, Project Report and Presentations (Fall 2022). Mr. O’Dell informed Council that staff would like direction for this to take place within the policies. Mayor Gerwig asked who have staff met with regarding the owners. Mr. O’Dell replied. Village of Wellington Page 4 Village Council Workshop Action Summary - Final May 23, 2022 Mayor Gerwig commented regarding redevelopment and timing. She said having methods in place would be helpful but it is hard without the owner’s input. Mr. Stillings stated it is important for the owners to know what the Village would entertain and where adjustments could be made. He said that staff has a foundation to begin with and stated this will not be a quick fix. Councilman McGovern commented regarding owners making an application. Mayor Gerwig asked if the Village can make land use changes. Vice Mayor Drahos asked what can be put into place to prevent what the Village does not want. Councilman McGovern stated if things are in place the owner would know what the Village wants. Ms. Cohen stated it would have to be done in conjunction with the owner. Vice Mayor Drahos asked if TCRPC considered what is going on with Lotus to date. Mr. Little stated an overlay could be created. He stated the Council could have a vision for the area and it is portable and legible. Councilman Napoleone asked if there is something the Village could look at of someone who has actually done this before. Mr. Little replied yes and referenced Boynton Beach, City Place and Winter Park. He referenced fractured ownership and stated this is not an easy fix. It will be good for the Village to be in position to take advantage of any opportunity by having land use and zoning changes in place. Councilwoman Siskind stated it would be good for the Village to have these things in place. Councilman McGovern asked the Village Attorney if she agrees regarding the overlay. Ms. Cohen stated she agrees with the analysis of an overlay. She said as long as developer rights are not being taken away. Village of Wellington Page 5 Village Council Workshop Action Summary - Final May 23, 2022 Vice Mayor Drahos has the analysis considered the impact on traffic. Mr. Little stated they have not done a traffic study so there has been no analysis of that area. He referenced volume and potential of the land where the mall is today. Mayor Gerwig said congestion is one thing and capacity is another. Mr. O’Dell stated they have met with Macy’s and J.C. Penney’s but not the actual land owner who determines what stays in place and what does not. Councilman McGovern stated the Village had been having this conversation for the last several years. Mr. Stillings commented on having the package or program ready to go that could assist them in finding the right owner. Mr. Little stated the mall has gone into receivership. Mr. Barnes stated their needs to be framework put into place and be clear as to what the Village wants to see whether that is overlay or policy, etc. There was brief discussion regarding K-Park and the 10-acre site. Councilman McGovern stated he would like to see what can be done to add the 10-acre site to this. Mayor Gerwig spoke regarding the property and Starwood Properties . She stated what the Village wants on the property should be conveyed to the owners. Councilman Napoleone asked what the overlay would look like for this property. Mr. Stillings stated that there would be the current MUPD rules and then, the bonus rules of what would have to happen prior to this going into effect. Vice Mayor Drahos asked what is next to complete the report. Mr. Little stated Phase III would pull it all together. He stated there is a proposal from the economic team to do this. Mr. O’Dell stated the data needs to be updated from 2020 to today in Village of Wellington Page 6 Village Council Workshop Action Summary - Final May 23, 2022 order to close out the report. Mr. Stillings stated then Wellington as a community could determine what would be best to place on that property. Mr. O’Dell stated putting the framework together shows the owner that the Village is interested in this property being developed. He said we need to update the data and complete the Phase III report. Mayor Gerwig stated the whole “egg” needs to be considered. Mr. Little stated the Village is adding value where right now it is quenched. He said when parts of the mall are removed, you do not know how much value is then left. He discussed malls in general throughout the country. Vice Mayor Drahos asked how soon TCRPC plans to be finished with this Phase. Mr. Barnes summarized what he heard: framework, policy, overlay for the “egg” as a whole. He said at some point the K-Park site needs to be reviewed independently. He stated the Village needs to move forward on something to move the mall forward. Mayor Gerwig said she is uncomfortable saying the mall is hopeless . She said she thought the movie theater would bring something and likes the idea of recreational interior space. Sports Tourism: Mr. O’Dell referenced the handout he provided regarding the active Village parks. Mr. George Linley, Palm Beach County Sports Commission, stated the Village is one of the premier locations for hosting sports events. He said there is opportunity for more growth for sports tourism in the Village. He introduced some of his team, board members and J. Michael Prince, USPA who were in attendance. He stated their primary source of funding is bed tax collections. They are a Tourist Development Council (TDC). He said Palm Beach County is a pioneer in the Sports Tourism industry . Mr. Linley provided an extensive overview of sports in the county and specifically in the Village in terms of football, baseball and equestrian fields. He highlighted the number of dollars brought in from the equestrian industry. Mayor Gerwig referenced pickle ball and mentioned equity of sports and ages. Village of Wellington Page 7 Village Council Workshop Action Summary - Final May 23, 2022 Vice Mayor Drahos commented regarding sports becoming a major tourism event for communities. He commented that Wellington has premier fields in Palm Beach County. He asked if there is a particular sport that Wellington can capture to serve with our fields. Councilman McGovern asked about dedicated areas for sports and unique venues. Mr. O’Dell showed Council the Active Parks & Polo Fields Map. Vice Mayor Drahos stated the Village is benefitting economically from these sports events and he would like for the Village to take opportunities when Mr. Linley calls. Councilman Napoleone stated Wellington does sports well. He said the key is balancing bringing in events and keeping play open for the local children. He mentioned the return on investment (ROI). Mayor Gerwig stated Wellington has been a beneficiary of the equestrian industry happening around us and she would like for the Village to continue to assist that industry. 7. TOWN CENTER PHASE III Mr. O’Dell discussed the previous Concept “A”, Concept “B”, Concept “C” and Concept “D” from 2019. He provided an update regarding Town Center Phase II construction. He highlighted the Town Center Phase III Topics: PBSO Substation, Aquatics Center, Office Space, Parking (Garage vs. Surface) and Promenade Expansion. He discussed the Conceptual Phase III Timeline. Mr. Barnes referenced Town Center Phase II construction that is ongoing now. He discussed Town Center Phase III. Vice Mayor Drahos commented about the PBSO substation. Mr. Barnes discussed future space needs. There was brief discussion regarding the expansion of Village Hall. Councilman McGovern asked where are we on the study of the pool. He asked where are we envisioning the PBSO substation. Mr. O’Dell referenced the location on the map. Mayor Gerwig stated she likes the pool on the site and would like to see Village of Wellington Page 8 Village Council Workshop Action Summary - Final May 23, 2022 the pool redesigned to meets needs regarding competition. Councilman McGovern asked what is the timeline for the RFP. Mr. Barnes briefly discussed the timeline. Mr. Barnes stated the consensus of Council is that the PBSO substation should be somewhere near Village Hall. He said staff would like to move forward on the recommendations regarding the aquatics facility where it remains or is relocated. Mayor Gerwig asked about the Greenbriar site and what will happen with that. Mr. Barnes discussed the public works function and mentioned the Old Boys & Girls Club site. He stated we will need climate-controlled storage. Councilman McGovern stated the site should be discussed globally. Mr. De La Vega stated the proposals are due regarding the pool. Mayor Gerwig stated she feels like we are asking for something we are not ready for and said something better should be done with the office space. Discussion ensued regarding a competition pool and a recreation pool and a location for same. Councilman McGovern asked what is the zoning for the 10-acre site. Mr. Barnes stated staff will look at opportunities and other properties. Vice Mayor Drahos commented regarding proposals for the pool. He also commented regarding tenant leases and stated it has been six years. Councilwoman Siskind commented regarding the old tennis facility, how it was moved and stated the pool should be viewed in the same way. Mr. O’Dell commented regarding parking. Mayor Gerwig stated the cost and parking depth should be discussed. Vice Mayor Drahos inquired about the parking space. Mr. Stillings discussed the office development component. Village of Wellington Page 9 Village Council Workshop Action Summary - Final May 23, 2022 Mr. De La Vega commented regarding a P3 at the 10-acre site. He stated an RFP can be issued to see if anyone is interested. Mr. Barnes discussed potential P3 or any proposal for the site. He stated there are ways to do this and have residual funding going back to the public entity i.e. Boca. 8. WRAP-UP Vice Mayor Drahos stated he would not attend tomorrow due to his daughter’s graduation and an unavoidable professional conflict. He stated he admires, appreciates and respects how good staff is at their jobs. There being no further business to discuss, the workshop adjourned at 4:38 p.m. Village of Wellington Page 10