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HomeMy WebLinkAboutItem 07 Extension of SDC Reductions for Large Commercial Industrial Development AGENDA ITEM SUMMARY Meeting Date: 11/19/2012 Meeting Type:Regular Meeting Staff Contact/Dept.: Ken Vogeney/DPW Staff Phone No: (541)736-1032 Estimated Time: Consent Calendar S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Provide Financially Responsible and Innovative Government Services ITEM TITLE: EXTENSION OF SDC REDUCTIONS FOR LARGE COMMERCIAL INDUSTRIAL DEVELOPMENT ACTION REQUESTED: Adopt or reject A RESOLUTION OF THE COUNCIL OF THE CITY OF SPRINGFIELD AMENDING THE RATE STRUCTURE FOR SYSTEMS DEVELOPMENT CHARGES AS ESTABLISHED IN THE SPRINGFIELD MUNICIPAL CODE, SECTION 3.406, AND SPECIFYING AN EFFECTIVE DATE ISSUE STATEMENT: Council has directed staff to present a resolution extending the 100 percent reduction of local System Development Charges for certain commercial and industrial development. ATTACHMENTS: 1.: Draft Resolution DISCUSSION/ FINANCIAL IMPACT: At a work session held on November 5, 2012, Council directed staff to present a resolution extending System Development Charge reductions adopted on February 6, 2012, for commercial and industrial development which proposes net new useable space in excess of 75,000 square feet and creates new employment opportunities and for new commercial and industrial development which proposes net new useable space in excess of 50,000 square feet that will be occupied by an employer or employers committed to employ not less than 50 full time employees within one year of occupancy. That resolution is presented. In addition, council directed staff to return for a further discussion of whether or not, and under what circumstances a 50 percent reduction in local Systems Development Charges would similarly be continued. Staff has scheduled that work session for November 26, 2012. RESOLUTION 12 - ______ A RESOLUTION OF THE COUNCIL OF THE CITY OF SPRINGFIELD AMENDING THE RATE STRUCTURE FOR SYSTEMS DEVELOPMENT CHARGES AS ESTABLISHED IN THE SPRINGFIELD MUNICIPAL CODE, SECTION 3.406, AND SPECIFYING AN EFFECTIVE DATE WHEREAS, the Oregon economy continues to struggle with a number of issues, including high unemployment and lack of investment; and WHEREAS, an effect of the continued struggles within the Oregon economy is a lack of new development which will generate revenues to fund essential service for Oregonians; and WHEREAS, in particular, the absence of large commercial and industrial development, which would provide family wage jobs for Oregonians, is challenging the ability of Springfield to provide adequate levels of service for its citizens; and WHEREAS, the costs of development include Systems Development Charges imposed by the City for the purposes of funding future infrastructure that will be required to meet the needs of community growth; and WHEREAS, on April 19, 2010, the Council adopted Resolution 10-19, amending and adopting the rate structure for Systems Development Charges; and WHEREAS, the Council finds and determines that a temporary reduction in such charges may provide an incentive to encourage development within the City; and WHEREAS, the Council desires to stimulate large scale commercial and industrial development that will provide additional family wage jobs; and WHEREAS, the Council finds and determines that such a reduction will reduce the amount of funding available to fund future infrastructure requirements and that such shortfall may result in the delay of construction of such infrastructure projects; and WHEREAS, the Council finds and determines that such delay will be consistent with the delay in reaching the levels of growth contemplated by the several facilities plans upon which the Systems Development Charge Capital project list are based; and WHEREAS, the Council finds and determines that any such reduction should be enacted only for a limited period of time, and that it may, if conditions warrant, be extended by subsequent action of the Council; and WHEREAS, on February 6, 2012, the Council adopted Resolution 12-02, reducing certain local Systems Development charges imposed by the city for the period ending December 31, 2012; and WHEREAS, having received a report on the effects of such reduction from City staff on November 5, 2012, the council finds and determines that it is in the public interest to continue certain reductions for an additional period, though and including June 30, 2013; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SPRINGFIELD, that for a period beginning on January 1, 2013, and ending on June 30, 2013, unless further extended by Council Resolution, all Systems Development Charges imposed by the City shall be adjusted as follows: 1. For all commercial and industrial development which proposes new net useable space in excess of 75,000 square feet, creating new employment opportunities, such charges shall be reduced by 100 percent; 2. For all commercial and industrial development which proposes new net useable space in excess of 50,000 square feet to be occupied by an employer or employers who will commit to employ not less than 50 full time employees, within one year of occupancy, such charges shall be reduced by 100 percent; and BE IT FURTHER RESOLVED, that the reductions provided herein shall be in lieu of any and all reductions which might be available in the Downtown Development area, as described in Resolution 10-19; and BE IT FURTHER RESOLVED, that the City Manager is directed to report to the Council on or before June 18, 2013, with respect to the impact of these reductions both on development within the City and the impact on Systems Development Charge revenues, and to recommend whether or not to extend this program of reductions; and BE IT FURTHER RESOLVED, that this Resolution shall take effect upon adoption by the Council and approval by the Mayor. Adopted by the Common Council of the City of Springfield, Oregon, by a vote of ____ for and ____ against, this ________ day of ___________, 2012. _____________________________ Mayor ATTEST: __________________________________ City Recorder