Loading...
HomeMy WebLinkAbout10/27/2014 Work Session (2)MINUTES OF THE JOINT ELECTED OFFICIALS MEETING OF THE SPRINGFIELD CITY COUNCIL, AND LANE COUNTY BOARD OF COMMISSIONERS MONDAY, OCTOBER 27, 2014 A joint elected official's work session with the City of Springfield and Lane County was held in the Library Meeting Room, Springfield City Hall, 225 5h Street, Springfield, Oregon, on Monday, October 27, 2014 at 6:00 p.m. with Mayor Christine Lundberg presiding. ATTENDANCE Mayor Lundberg opened the meeting of the Springfield City Council. Board Chair Farr opened the meeting of the Lane County Board of Commissioners. Present from Springfield were Mayor Christine Lundberg and Councilors VanGordon, Moore, Ralston, and Woodrow. Springfield City Manager Gino Grimaldi and other Springfield staff were also present. Councilor Wylie was absent (excused). Present from Lane County were Board Chair Farr and Commissioners Bozievich, Leiken, Stewart and Sorenson. Lane County Administrator Steve Mokrohisky and other Lane County staff were also present. Mayor Lundberg announced that the Glenwood Refinement Plan Amendments to the Rural Enterprise Zone items will be heard at 7:OOpm under the public hearing. WORK SESSION 1. Glenwood Redevelopment Update. Assistant City Manager Jeff Towery and County Administrator Steve Mokrohisky presented the staff report on this item. The Springfield City Council and the Lane County Board of Commissioners have jointly adopted the Glenwood Urban Renewal Plan (2004) and the Glenwood Refinement Plan, Phase I (2014). Several projects, both public and private, consistent with those plans are under active consideration. The primary purpose of this joint work session is to provide an overview of redevelopment opportunities in Glenwood, broad areas for possible public investment, as well as an update on several projects currently underway. In focusing attention and momentum on progressing development in the Glenwood area, staff recommends consideration of several key factors; current Glenwood projects already in motion, future Glenwood projects awaiting allocations of resources, and the current allocation of resources to all projects, both Glenwood specific and city/region-wide. This discussion is important in making strategic determinations about maintaining current public resource investments already committed to Glenwood and the possible reallocation of additional public resources from other areas to Glenwood projects in order to expedite development. It is also important in identifying key tasks and responsibilities which Council and County Commissioners might assume in order to assist staff in leading redevelopment efforts in Glenwood. Mr. Mokrohisky said it had been six or seven months since the City Council and Lane County Board of Commissioners had met to discuss this topic. Tonight they will be providing a broad overview of October 27, 2014 Joint Elected Officials Meeting Work Session City of Springfield Lane County Page 2 of 7 the Glenwood Refinement Plan and redevelopment efforts, and then give an update on the ongoing discussions among city and county staff and developers regarding Glenwood. At the end of the presentation, staff will provide some options for County participation. Mr. Towery provided a power point presentation. He identified the Glenwood area in one of the power point slides. The north river property, which is the focus of the majority of tonight's discussion, includes a mile and a half of urban riverfront in the heart of the second largest metro area in the state. It is a unique resource. The Glenwood Refinement Plan (GRP) stretches along the entire riverfront from the 1-5 Bridget to the southeast corner of the urban growth boundary. The GRP sets out a public vision for how the properties will be redeveloped and identifies infrastructure needed. Once the GRP was adopted, the city started to receive responses from private property owners and development groups that identified the types of development they thought could happen in the riverfront area. The hotel and conference center was one of the four projects to be discussed tonight. As they started to work with the development groups, they looked at the infrastructure and identified a street network they felt could work, including the Franklin Boulevard redesign. Mr. Towery said staff has been in discussions with Housing and Community Services Agency (HACSA) of Lane County, Roaring Rapids Pizza, the Glenwood Hotel and Conference Center and the Phil Marvin property. These properties include a wide variety of commercial, mixed-use, housing mixed-use, and office mixed-use throughout the development area. Staff worked with all of the developers as they approached the City and County. Mr. Mokrohisky said part of the reason to provide a high level overview is to set some context of the number of private and public projects that are critical in this area. There have been a number of meetings among Lane County and Springfield staff and developers that have focused on identifying solutions for public financing opportunities. Staff saw the value of a hotel and conference center along the river and the impact it will have on the community and visitors. They are also looking at other redevelopment projects along the river. Staff has been looking at the appropriate participation level for the County, such as a parking structure which could meet the needs for developers and potentially have revenue tied to it if done right, reducing the risk to Lane County. He is seeking guidance from the Board on whether or not the appropriate participation level for the County is to work directly with the development team or to invest in public infrastructure projects. Staff feels it is a natural fit for the County to work with the City of Springfield and potentially invest in public infrastructure projects identified in the GRP. Last week, staff presented an overview of the video lottery fund and transient room tax funds to the Board. There are constraints with those funds, but they feel there is opportunity to partner with the City by investing in public infrastructure if there is interest from the Board. Councilor Moore asked about the Willamette River setback, the greenway setback and the potential of Willamalane investing in a linear park along the river. That is an infrastructure improvement that will make a big difference to developers. Mr. Towery said the GRP envisions a riverfront path along the perimeter of the entire riverfront. A greenway setback has to be established in order for that path to be constructed. In addition, any properties that front the river that want to redevelop, also have to establish a greenway setback. Earlier this year, Council directed staff to pursue a design concept for a linear path, and establish the greenway setback for the entire length of the riverfront. Those two projects are currently underway. There is a potential for Willamalane to participate in that effort through bond funds. October 27, 2014 Joint Elected Officials Meeting Work Session City of Springfield Lane County Page 3 of 7 Commissioner Leiken asked for a time frame on the roundabout at McVay Highway. That is the access point for any project that will happen in Glenwood. Kristi Krueger, Principal Engineer for the City of Springfield, said staff is working with the Oregon Department of Transportation (ODOT) to get the design contract underway. They hope to begin construction in the 2016 construction season, but it will depend on the bid and how much can be constructed along Franklin Boulevard. Commissioner Leiken said when talking with commercial realtors, the large roundabout at McVay is a critical piece for them to move forward. The potential County role could be to provide some additional funds for those infrastructure costs. He asked about urban renewal district funds being used as well. They need to have the key infrastructure in place for this area to redevelop effectively. Developers expect to have a partner on the public side. Mr. Towery said Commissioner Leiken is speaking of the larger roundabout which provides southerly access down McVay and northerly access into the riverfront along Mississippi. They are hoping the first phase of Franklin Boulevard includes that entire stretch. Currently, the urban renewal district is generating enough increment funding for the local match of Phase 1. Any additional growth that occurs in the urban renewal area is dedicated to other projects including public infrastructure. Commissioner Stewart asked about the interior road pieces and the process for getting those roundabouts in place. The developers had talked about access being critical. Mr. Towery said those interior pieces would be funded through a combination of urban renewal funds, outside partner funds, possible County funds and developer funds. The City completed a jurisdictional transfer with ODOT which came with a payment from ODOT. Willamalane may also help with the linear park and block parks. Commissioner Stewart said investments in infrastructure had been critical to move projects forward and he is more supportive of that proposal. The County should be prepared to help the City get the critical infrastructure in place for all development in Glenwood, rather than focusing on one investment. Commissioner Farr noted that this meeting is being recorded and can be followed at home with the materials. Commissioner Bozievich said the idea of investing in the infrastructure feels like the better option and will support all development in Glenwood. He noted that when he first moved here from the east coast, he worked at Branch Engineering on the International Way project. At that time, they were fortunate to be able to work with the county who provided funding support for infrastructure. The catalyst for the major growth in Gateway was the infrastructure. Public funding for infrastructure helps offset the costs for developers and is at no risk for the public entity. Commissioner Leiken said former Springfield Councilor and banker Lyle Hatfield said, "My job is not to finance dreams, but to finance reality". Banking has changed dramatically since 2008 and he would October 27, 2014 Joint Elected Officials Meeting Work Session City of Springfield Lane County Page 4 of 7 like to get an idea how the meetings with the banks went recently for the hotel and conference center project and if they were successful. Mr. Towery said as with most large projects, it will be a complicated financing mechanism to bring the project forward. There is investment interest in the property and an opportunity to put together one or more options that could make the project successful. It is still going to take some work and public commitment. Staff continues to work with all developers in Glenwood about public assistance. Commissioner Leiken said public funding of this can provide confidence to developers. Once the public looks at investments, then private investors come through. The timing may be just right with the economy improving. He is comfortable looking at the public infrastructure piece. Commissioner Farr said he looks at the risk involved with the limited funds at the County. Investing in infrastructure is less of a risk and will give private lenders confidence. He mentioned that he grew up in England and loves roundabouts. Mayor Lundberg said Gateway had nothing and it took a dreamer to see the potential. We have interest from several developers in Glenwood, and are at the point to make the infrastructure improvements that will help development. The Council has prioritized Glenwood for the year and is looking at Franklin Boulevard as well as the bike path along the river which can be an economic driver. Once people see the river, they see the potential. People love our rivers and bike paths along the river. The region needs a destination area outside of athletics, and Glenwood has the potential to put in attractions that will bring people here or provide a unique place for visitors. It takes the public commitment to give the private investments confidence. It is just a matter of time. She noted that Gateway employs about 40% of the Springfield community. Commissioner Farr said he had made Glenwood a priority in 1996 when they gave it to Springfield. Commissioner Stewart asked if there are any opportunities for County staff to do in-kind work on the infrastructure. Mr. Towery said there could be an opportunity. Mayor Lundberg said the City would welcome any assistance. 2. Resolution to Expand the Springfield Community Rural Enterprise Zone. Community Development Manager John Tamulonis presented the staff report on this item. The City of Springfield currently carries a Rural Enterprise Zone designation which allows an eligible business firm making a qualifying investment or expansion to receive a three- to five-year abatement on the property taxes otherwise levied on new facilities and equipment. Springfield, in partnership with Lane County, is proposing to expand the Springfield Community Rural Enterprise Zone to include areas in Glenwood, Jasper-Natron, North Gateway, and Goshen. The current zone does not include all areas, but rather focuses on industrial areas most likely to appeal to industry within the city limits. As the City looks to the future for developable lands, an amendment October 27, 2014 Joint Elected Officials Meeting Work Session City of Springfield Lane County Page 5 of 7 to expand the current zone boundary to include those potential areas would offer incentives to businesses looking to locate. These areas include parcels both inside and outside the Springfield city limits and within the existing urban growth boundary. This eliminates the step needed for the State of Oregon to approve modifying the boundary each time land is annexed. Additionally, as part of the Springfield Enterprise Zone expansion, the City of Springfield and Lane County are proposing a partnership to include the Goshen area, located south of Glenwood. In June of 2013, Lane County Board of Commissioners adopted the Goshen Regional Employment and Transition (GREAT) Plan to support the development of the unincorporated Goshen community under urban industrial zoning. The goal is to enhance the economic viability of the region focusing on approximately 300 acres of underutilized industrial land along Interstate -5. Lane County has initiated a number of land use activities to allow for urban levels of industrial development on this existing rural industrial zoned land in Goshen. The addition of enterprise zone incentives would greatly help to realize the employment growth potential of Goshen. City staff notified the various taxing agencies potentially affected by the new revenue and received no questions or comments. Commissioner Sorenson had some questions that have been answered. While Lane County would be added to the zone as a co-sponsor, the City would still remain zone manager. The addition of a co-sponsor would not change the process or benefits available to businesses within the enterprise zone. Should Springfield City Council and the Lane County Board of Commissioners jointly adopt the attached resolution, staff will submit the resolution to the State of Oregon for approval of the proposed zone boundary expansion. The value of any new investments will go into the Enterprise Zone. As Enterprise Zone managers, Mr. Tamulonis and Ms. Poling would represent the two jurisdictions businesses and explain the process and requirements. There are many opportunities to work together over the next eight years. Commissioner Sorenson asked if the area around Goshen connected to the city boundary or the Glenwood urban renewal district. Mr. Tamulonis said it does not. Under the law, the Rural Enterprise Zone can have separation from the UGB. There is about 1.67 miles separation. Commissioner Sorenson asked about the significance of the line that connects the proposed Goshen area to the north and east. Mr. Tamulonis said it showed the state that the addition of this Enterprise Zone was within the maximum of 15 square miles. Councilor Moore asked if there would be an opportunity to add to this Enterprise Zone in the future. Mr. Tamulonis said areas that are primarily industrial could potentially be added in the future if they fit within the maximum parameters. They could also reduce the area somewhere else if needed to stay within the parameters. October 27, 2014 Joint Elected Officials Meeting Work Session City of Springfield Lane County Page 6 of 7 Commissioner Bozievich said the major taxing district in this area is the Goshen Rural Fire Protection District. Having an Enterprise Zone in their district won't affect their revenue as they had other large businesses paying them. Mr. Tamulonis said if those existing businesses made new investments and increased employment, they may qualify for the Enterprise Zone for three to five years. Commissioner Stewart said he met with the Goshen fire chief to discuss the Enterprise Zone. He asked if there is an opportunity to consider a contribution to the Goshen Fire District for equipment, etc. Mr. Tamulonis said for a three-year Enterprise Zone exemption, a contribution would not be allowed by state law. If it goes to five years, the city or county as co-sponsors could ask for something additional such as equipment. He gave the example of things provided by Symantec during their Enterprise Zone period. It would be up to the company to decide if the exemption was large enough to justify the additional payment. Commissioner Leiken asked about the size of the smallest company that had received the Enterprise Zone designation. He said they often focused on larger businesses. Mr. Tamulonis said one person was the smallest business. He noted other small companies that had qualified for the Enterprise Zone. Commissioner Stewart said he had been following the urban growth boundary (UGB) expansion in the Seavey Loop area, although he had not yet met with the citizens. He wanted to see if there was support to narrow the affected area in the UGB expansion between I-5 and Franklin, and extend it down to the Goshen area. Through that process, the area would be further from farmland and Mt. Pisgah, and they could possibly put a conservation buffer between the new UGB and farmland and the park. If it made sense, they could partner with the County to see if some of the industrial land in Goshen would meet the needs of Springfield. He had talked with the City Manager and it looked like it had some potential. He is not sure what concerns might arise with Goshen residents. Developable industrial land is needed and the County was close to getting Goshen to an urban standard. Councilor Woodrow said she appreciated that and would think it would be something they could consider. She is interested in the process to look at that area. Mayor Lundberg said even with the industrial area along I-5, the City is still short in terms of acreage for industrial land. It is intriguing and growth will naturally go along I-5. She is interested in discussing it. Commissioner Stewart said this is a very lengthy process, but if there was a way to bring assurance to the neighbors in Seavey Loop that this would minimize impacts. Industrial land is needed to meet the needs of current businesses and new businesses, and Springfield doesn't need to be tied up in a lengthy battle to create that. This might be a way to get to yes. Councilor Ralston asked if we would have to look at parameters for the Enterprise Zone if that was done. October 27, 2014 Joint Elected Officials Meeting Work Session City of Springfield Lane County Page 7 of 7 Commissioner Leiken asked that during the Board meeting on Tuesday, October 28, they could discuss this and provide staff with direction on pursuing this option. He would also like to hear Springfield Planning Manager Greg Mott's opinion on this because of his knowledge in this area. Mayor Lundberg asked if the Council was fine moving forward with this. Council consensus was to move forward. Mr. Grimaldi said after the Board of Commissioners meet and decide to move forward, staff will come up with a plan, timeline and steps needed to proceed. Commissioner Bozievich confirmed the discussion on the UGB would be separate from the current discussion on the Enterprise Zone and they can still go forward with designating Goshen as an Enterprise Zone. ADJOURNMENT Mayor Lundberg adjourned the Springfield City Council Work Session at 7:05 p.m. The County did not adjourn, but will continue to the public hearing. Minutes Recorder Amy Sowa City Recorder Christine L. Lundberg Mayor Attest: i A -- City Record