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Home My WebLink AboutItem 05 Resolution for Continued SEDA Funding AGENDA ITEM SUMMARY Meeting Date: 6/10/2013 Meeting Type: Regular Meeting Staff Contact/Dept.: John Tamulonis/CMO Staff Phone No: 541-726-3656 S P R I N G F I E L D E C O N O M I C D E V E L O P M E N T A G E N C Y Estimated Time: 15 Minutes ITEM TITLE: RESOLUTION FOR CONTINUED 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 adopted a resolution to continue funding the SEDA pick- up of SDC costs through June 30, 2013. That action provided some stimulus in Downtown but none in the Glenwood area (Attachment 2). The resolution (Attachment 1) provides that SEDA pick-up 100% of the local SDCs throughout FY14 for projects consistent with the adopted Downtown Urban Design Plan or the adopted Phase 1 of the Glenwood Refinement Plan. ATTACHMENTS: 1. Resolution 2. SEDA Eligible SDC Stimulus Areas DISCUSSION/ FINANCIAL IMPACT: Year to date in 2013, for five projects in the Downtown Urban Design Area (Attachment 2), SEDA enhanced the City’s 50% SDC reductions by SEDA’s obligation to pay the remaining 50% of local SDCs for the development. SEDA provided an additional incentive for redevelopment consistent with the Downtown Urban Design Plan. The result was a small number of smaller projects Downtown. There were no Glenwood projects. The attached Resolution proposes to authorize SEDA, from July 1, 2013 to June 30, 2014, to be obligated for 100% of the local City SDCs in the Downtown Urban Design Plan area and the adopted Phase 1 Glenwood Refinement Plan area. The resolution for this SEDA portion includes no cap at this time 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. SEDA’s obligation would be paid after development occurs and property taxes flow to pay the SEDA obligation over time. 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 23, 2014, providing the Board an opportunity to adjust, extend, limit, or end SEDA’s pickup of these SDC costs in either or both of these urban renewal plan areas. Attachment 1, Page 1 of 3 RESOLUTION 13 - ______ 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, 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 WHEREAS, while the principal interest of the Council was to stimulate large scale commercial and industrial development, there is also value in stimulating all forms of development, including multi-family residential development and mixed use development; but with the substantial development occurring outside of the urban renewal areas and the Council is allowing the program to expire on June 30, 2013, and Attachment 1, Page 2 of 3 WHEREAS, the principal interest of SEDA is to stimulate residential, commercial, mixed-use and industrial redevelopment in the Downtown Urban Design Plan area and in the adopted Phase 1 Glenwood Refinement Plan area that is consistent with each of those plans; and WHEREAS, the Springfield Economic Development Agency wished 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 but that such major development and redevelopment has not yet occurred. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF THE SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY OF SPRINGFIELD, that for a period beginning on July 1, 2013, and ending on June 30, 2014, unless further extended or modified by Board Resolution, all Systems Development Charges imposed by the City, SEDA will assume the financial obligation to stimulate residential, commercial, mixed-use and industrial redevelopment 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 City Manager is directed to report to the SEDA Board Council on or before December 2, 2013 and June 23, 2014, 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. Adopted by the Springfield Economic Development Agency by a vote of ____ for and ____ against, this ________ day of ___________, 2013. _____________________________ Chair ATTEST: __________________________________ Secretary Attachment 1, Page 3 of 3 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 346 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 & Johnny’s Upstairs 471 S A Street $ 1,005 $ 1,005 Complete Vision Center 840 A Street $ 207 $ 207 Adopted Phase 1 Glenwood Refinement Plan Area Boundary Attachment 2