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