HomeMy WebLinkAboutItem 03 Resolution for SEDA Funding of Portions of Local SDC Fees and Charges AGENDA ITEM SUMMARY Meeting Date: 12/3/2012
Meeting Type: Regular Meeting
Staff Contact/Dept.: John Tamulonis/CMO
Staff Phone No: 541-726-3656
Estimated Time: 15 Minutes
S E D A
B O A R D
Council Goals: Community and
Economic Development
and Revitalization
ITEM TITLE: RESOLUTION FOR SEDA FUNDING OF PORTIONS OF LOCAL SDC FEES
AND CHARGES
ACTION
REQUESTED:
Adopt/not adopt the following resolution:
A RESOLUTION OF THE BOARD OF THE SPRINGFIELD ECONOMIC
DEVELOPMENT AGENCY PROVIDING AN INCENTIVE TO
DEVELOPMENT IN DOWNTOWN AND GLENWOOD BY ASSUMING
CERTAIN PORTIONS OF SYSTEMS DEVELOPMENT CHARGES AS
ESTABLISHED IN THE SPRINGFIELD MUNICIPAL CODE, SECTION 3.406,
AND SPECIFYING AN EFFECTIVE DATE
ISSUE
STATEMENT:
To provide a boost for ambitious development and redevelopment plans (the
Downtown Urban Design Plan and the adopted Phase 1 of the Glenwood
Refinement Plan), SEDA should consider adopting the resolution Attachment 1) to
financially stimulate and move opportunities over the threshold to actual
construction. The resolution provides that the reductions are for projects that are
consistent with the adopted Downtown Urban Design Plan or the adopted Phase 1
of the Glenwood Refinement Plan.
ATTACHMENTS: 1. Draft Resolution
2. SEDA Eligible SDC Stimulus Areas
DISCUSSION/
FINANCIAL
IMPACT:
Year to date in 2012, five projects in the Downtown Urban Design Area
(Attachment 2), SEDA enhanced the City’s 50% SDC reductions by SEDA’s
covering the remaining 50% of local SDCs for the development (by obligation to
pay that portion of local SDCs to the City). SEDA provides the additional incentive
for redevelopment consistent with the Downtown Urban Design Plan by SEDA’s
funding the remaining local SDC costs, complementing the 50% City-SDC stimulus
approved for smaller commercial projects. There were no Glenwood projects.
Council directed staff at a work session November 26, 2012 to present a resolution
on 12/3/2012 to extend the current temporary city-wide SDC reduction and cover
larger developments, smaller commercial and industrial development, and new
single- and two-family residential development. That City program is to be
extended through June 30, 2013 and limited to a total reduction of $500,000.
The attached Resolution authorizes SEDA, from January 1, 2013 to June 30, 2013,
to be obligated for the remaining portions of the local City SDCs not covered by the
Council resolution in the Downtown Urban Design Plan area the adopted Phase 1
Glenwood Refinement Plan area. The resolution for this SEDA portion includes no
cap on the SDCs for projects in these areas since these areas have higher threshold
costs than most to overcome substantial development challenges. In addition, the
Resolution includes potential SDC reductions for multifamily and mixed-use
projects that are one of the plan areas referenced above and consistent with the plan.
The resolution provides for the City Manager to report to SEDA on the impact on
development in the Downtown and Glenwood areas on or before June 18, 2013,
providing the Board to adjust, extend, limit, or end SEDA’s pickup of SDC costs.
Attachment 1, Page 1 of 3
RESOLUTION 12 - ______
A RESOLUTION OF THE BOARD OF THE SPRINGFIELD ECONOMIC
DEVELOPMENT AGENCY PROVIDING AN INCENTIVE TO DEVELOPMENT IN
DOWNTOWN AND GLENWOOD BY ASSUMING CERTAIN PORTIONS OF
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 in certain areas targeted by the Springfield community especially in the Downtown
Urban Design Plan area and in the adopted Phase 1 Glenwood Refinement Plan area; 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 of Springfield 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 Springfield City Council adopted Resolution 10-19,
amending and adopting the rate structure for Systems Development Charges; and
WHEREAS, the Council found and determined that a temporary reduction in such charges may
provide an incentive to encourage development within the City; and
WHEREAS, while the principal interest of the Council is to stimulate large scale commercial
and industrial development that will provide additional family wage jobs, there is also value in
stimulating all forms of development, including residential development; and
WHEREAS, the principal interest of SEDA is to stimulate residential, commercial, and
industrial redevelopment in the Downtown Urban Design Plan area and in the adopted Phase 1
Glenwood Refinement Plan area consistent with each of those plans; and
WHEREAS, the City Council adopted Resolution 2012-19, which provided a 100 percent
reduction in local SDCs for all commercial and industrial development which proposes new net
useable space in excess of 75,000 square feet, creating new employment opportunities, Systems
Development Charges shall be reduced by 100 percent and 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; and
Attachment 1, Page 2 of 3
WHEREAS, on December 3, 2012, the Council adopted Resolution 2012-xx which reduces
local SDCs by 50 percent for all other commercial and industrial development and for new
construction of one and two family residences; and
WHEREAS, the Springfield Economic Development Agency wishes to encourage and stimulate
development in the Downtown Urban Renewal Area and within the limits of the Glenwood
Refinement Plan by assuming the obligation for certain local SDCs imposed by the City for the
period commencing January 1, 2013 and ending June 30, 2013.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF THE SPRINGFIELD
ECONOMIC DEVELOPMENT AGENCY OF SPRINGFIELD, that for a period beginning
on January 1, 2013, and ending on June 30, 2013, unless further extended by Board Resolution,
all Systems Development Charges imposed by the City, SEDA will assume the financial
obligation as follows:
1. For all development occurring in the Downtown Urban Renewal Area which is consistent
with the Downtown Urban Design Plan, SEDA shall agree to enter into an agreement
with the applicant and the City under which SEDA shall assume the obligation of all
local SDCs imposed by the City during such period.
2. For all development occurring within the limits of the approved Glenwood Refinement
Plan, Phase I, as adopted by the Council, which is consistent with that Plan, SEDA shall
agree to enter into an agreement with the applicant and the City under which SEDA shall
assume the obligation of all local SDCs imposed by the City during such period; and
BE IT FURTHER RESOLVED, that SEDA requests, pursuant to the Cooperation and Services
Agreement between SEDA and the City, that the Council request City staff to review
applications for assumption of SDCs by SEDA pursuant to this resolution and to designate the
Director of Development and Public Works to determine if such applications are consistent with
the relevant plans and qualify for assumption under this resolution; 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 Urban Design Plan area, as described
in Resolution 10-19; and
BE IT FURTHER RESOLVED, that the City Manager is directed to report to the SEDA Board
Council on or before May 27, 2013, with respect to the impact of these reductions both on
development within the Downtown and Glenwood areas indicated above and the impact on
Systems Development Charge obligations SEDA has to the City, and to recommend whether or
not to extend this program of incentives; and
BE IT FURTHER RESOLVED, that this Resolution shall take effect upon adoption by the
Board.
Attachment 1, Page 3 of 3
Adopted by the Springfield Economic Development Agency by a vote of ____ for and ____
against, this ________ day of ___________, 2012.
_____________________________
Chair
ATTEST:
__________________________________
City Recorder
Attachment 2
SEDA-Eligible SDC Stimulus Areas
Downtown Urban Design Plan Area Boundary & 2012 Year-To-Date Activities with Reductions to
SDCs
Development Location City 50% SDC Stimulus + SEDA 50% Pickup = 2 X
$31,253
Planktown 3xx Main Street $12,096 $12,096
A3 School 402 Main Street $ 2,015 $ 2,015
Sprout/NEDCO 404 A Street $15,928 $15,928
Tom & Jerry’s Upstairs 4xx S A Street $ 1,005 $ 1,005
Complete Vision Center 840 A Street $ 207 $ 207
Adopted Phase 1 Glenwood Refinement Plan Area Boundary