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HomeMy WebLinkAbout2004-11-01 SEDA Meeting Minutes MINUTES OF THE MEETING OF THE SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY HELD MONDAY,NOVEMBER 1,2004 The Springfield Economic Development Agency met in the Jesse Maine Meeting Room,225 Fifth Street, Springfield,Oregon,on Monday,November 1,2004 at 6:05 p.m.,with Board Chair Tammy Fitch calling the meeting to order. ATTENDANCE Present were Board Chair Tammy Fitch and Board Members Dave Ralston,Anne Ballew, Christine Lundberg,and John Woodrow. Also present were City Manager Mike Kelly, Economic Development Manager John Tamulonis and City Recorder Amy Sowa. Board Member Sid Leiken was absent. APPROVAL MINUTES 1. Minutes of October 25,2004 IT WAS MOVED BY BOARD MEMBER WOODROW WITH A SECOND BY BOARD MEMBER LUNDBERG TO APPROVE THE MINUTES FROM THE OCTOBER 25,2004 SEDA MEETING. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST(1 ABSENT-LEIKEN). COMMUNICATIONS 1. Business from the Audience-None 2. Correspondence—None 3. Business from the Staff Mr.Tamulonis said color maps from the Glenwood Refinement Plan were included in this week's agenda packet as requested by Board Members at the October 18 SEDA Meeting. Also included in the agenda packet was the spread sheet also requested by the Board Members which reflected the projects with timeframes. The consultant told staff that the projects listed on this spreadsheet could not be funded with the current flow of funds. The cash flow is different than that listed on the spreadsheet. The spreadsheet distributed to the Board Members was draft only and included estimates only. Part of it could be dependent on an income the Urban Renewal District receives and the choices the board would make regarding which projects are done first and to what extent. The completed document would be tied in with the actual cash flow received. The consultant provided the cash flow in the report portion of the plan on pages 20-23. Those lay out some of the cash flow the agency would have if it sold bonds to do projects. Assumptions were made,but they are just estimates. The completion dates may need adjusted as well. Board Member Fitch said the placement of infrastructure might be dependent on which areas have interest from developers. The development and infrastructure should match. Springfield Economic Development Agency Minutes November 1,2004 Page 2 Mr.Tamulonis said he would assume a prudent board would try to match the expenditures with interest or the direction the board would like to take for that development. In the past,the City Council has focused efforts on the places where development was most likely to occur or where they wanted assistance and then worked with the property owners to get development in that area. That is up to the board. Board Member Ballew said the consultant's report pointed out that the$32M won't take care of any indebtedness in terms of interest,but for principal only. She asked if the agency was stuck with this list of projects. Mr.Tamulonis said the projects could be expanded or reduced. They have been written in the document under Table 2 in the report as a list with generic headings,plus a short list of projects. Table 2a,included in the report,has more detail with individual amounts included and the expected completion dates. He said an additional table could be created titled Table 2b,which could include additional information. The project titles and where they can be expended are malleable. Over the next 20 years,this could be adjusted for projects that could come in at that time. This allows some options on how to specify projects. Board Chair Fitch pointed out where Table 2 was located in the packet. Mr.Grile said these are project categories and allow plenty of flexibility to do projects within projects. These could be molded to match projects with infrastructure. Board Member Lundberg asked who generated the list in the beginning and who created the list. Mr. Tamulonis said he and Mr. Grile created the list with assistance from the Development Services Department(DSD)and Public Works(PW). The total suggested by those departments was closer to$38M, so the size had to be reduced because of the expected increment growth over twenty one years. Board Chair Fitch said some of the items in the plan came out of meetings with Glenwood residents and developers. Board Member Ballew asked if the Glenwood Water District contracts with the city for fire and emergency services. Mr.Tamulonis said they do contract for those services. Glenwood Water District Board Member Dave Carvo was in the audience. Mr. Carvo said that is paid through the district's tax revenues. Mr.Tamulonis said he met with the Glenwood Water District Board. Part of their concern, which is valid, is that the income the water district receives would be capped over time. This issue would need to be negotiated over time with the SEDA Board,the City of Springfield and Glenwood Water District. As properties were annexed into the City of Springfield,the district's tax base would actually begin eroding and the City of Springfield's would be increasing. The city's fire and life safety expenses would also increase and those costs would need to be covered. He discussed options that could be considered. The Finance Director of the City of Springfield is looking at some of those options. Board Member Ballew asked if Glenwood residents paid for their water through their tax bill. Springfield Economic Development Agency Minutes November 1,2004 Page 3 Mr. Carvo said they pay through a billing system through Springfield Utility Board(SUB). Their fire services are strictly through the district's taxes. Discussion was held regarding information on Table 4 based on properties possibly annexing to the City of Springfield from the Glenwood Water District. Board Member Ballew asked if those in the Glenwood Water District represented about thirty percent of the area within the urban growth boundary(UGB). Mr.Tamulonis said they do not in terms of assessed valuation. He referred to a map showing which areas outside Springfield and in the Glenwood area are covered by the Glenwood Water District. He also pointed out a small area covered by the Goshen Rural Fire Department. Board Member Woodrow asked if the Glenwood Water District would provide water to properties in Glenwood which annex to Springfield. Mr.Tamulonis said once properties are annexed to the city,they would be supplied water by Springfield Utility Board(SUB). SUB,Eugene Water and Electric Board(EWEB)and Glenwood Water District have an agreement at this time which allows a shift in billing. SUB is now building a trunk line to provide water from the Springfield side of Glenwood. Mr.Carvo said the water is currently brought in from the southwest through an EWEB line. By August the bridge transition should be up and running and the main down Franklin Boulevard should be in place. At that time the water will be directly off the Springfield system. Board Member Woodrow said that if the Urban Renewal District passes,the city would take the majority of this unless something is negotiated with Glenwood Water District for the increase in the fire costs. Mr.Tamuloins said as the areas annex,the Springfield tax rates apply to those areas. The Glenwood Water District has a rate of$3.19/thousand and Springfield has a rate of $4.75/thousand. The higher rate would be applied when properties annex to the city and would go to the City of Springfield. Board Chair Fitch discussed the value of a property when it is annexed into the city. Board Member Ralston asked if the tax rate within the Urban Renewal District could be raised at all. Mr.Tamulonis said the tax rate would be the city's permanent tax rate. Discussion was held regarding the value of a property when it is annexed from Glenwood and how that translates into the base rate. Mr. Tamulonis discussed the increase in rates for water and fire service from the Glenwood Water District to the city when a property annexes to the city. Mr.Tamulonis said he met with the Lane Educational Service District(ESD)Board. They commented that the impact from the Urban Renewal District was minimal and would not be a problem. The 4-J School District,Lane Community College(LCC)and Willamalane are having staff and senior management look this over and will send any comments. The Goshen Rural Springfield Economic Development Agency Minutes November 1,2004 Page 4 Fire District has a meeting on November 10 which Mr.Tamulonis will attend. Lane County also has a meeting scheduled for November 10. Board Member Ballew asked if the county would be determining whether or not to adopt the plan at their November 10 meeting. Mr.Tamulonis said that was correct. Any updates to the plan made from tonight will go to county for their November 10 meeting. REPORT OF CHAIR REPORT OF COMMI 1"1'hES OLD BUSINESS a. Adoption of revised SEDA By-Laws. Mr.Tamulonis said the SEDA By-Laws had been amended per the suggestions by board members at the last several meetings. IT WAS MOVED BY BOARD MEMBER BALLEW WITH A SECOND BY BOARD MEMBER WOODROW TO ADOPT RESOLUTION NO. 2004-01 APPROVING AND ADOPTING THE SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY(SEDA)BY- LAWS. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST(1 ABSENT- LEIKEN). b. Contract for Legal Counsel. Mr.Tamulonis said the contract for legal counsel had been amended with the changes suggested by board members at their last meeting. The term for this contract is from November 1, 2004 through December 31, 2005. Board Member Ballew said she is concerned how the agency would pay them when they do not yet have any money. Mr.Tamulonis said staff could propose something to the City Council to formalize an agreement. No debt has been incurred with the attorney at this point. The Agency by-laws require setting up a budget for the fiscal year. Staff is still researching when that budget needs to be adopted. Board Member Lundberg asked about the cost for litigation under Section 4. She asked what might constitute emergency actions as noted in section 4.4. Discussion was held regarding situations that could constitute an emergency. Board Member Lundberg said she assumes the$6500 covers all expenses including fees,office supplies,copying,etc. That is correct,but litigation would be billed separately. Board Chair Fitch said the start date of the contract should reflect November rather than October as listed on page 1. Springfield Economic Development Agency Minutes November 1,2004 Page 5 Board Member Woodrow confirmed that the agency does not incur any hours until the attorneys are asked by the agency. Mr.Kelly said there won't be any attorney costs until the agency borrows money to begin operations, if the measure passes. No money will be spent on litigation until the attorney comes to the board with an issue and receives direction to go forward. The attorney's office would provide an estimate of those costs when those issues are brought to the board. Mr. Tamulonis said they will try to minimize the costs as much as possible. Board Member Ballew said the agency needs to take out a loan with the city in order to have funds to charge against. The city would be reimbursed with interest. IT WAS MOVED BY BOARD MEMBER BALLEW WITH A SECOND BY BOARD MEMBER WOODROW TO APPROVE THE BOARD CHAIR TO EXECUTE THE CONTRACT WITH HAROLD,LEAHY AND KIERAN TO SERVE AS LEGAL COUNSEL FOR THE SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY(SEDA)WITH THE CORRECTION TO THE DATE ON PAGE 1 TO NOVEMBER. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST(1 ABSENT-LEIKEN). c. Update on Directors/Officers Insurance. Mr.Tamulonis said staff is waiting for a response from the insurance agent on what the cost might be by adding the agency to the current city policy. Mr.Tamulonis said he hopes to have that information by next week's meeting. NEW BUSINESS a. Discussion/questions regarding Draft Glenwood Urban Renewal Plan and Report. Mr. Tamulonis discussed the revised plan with changes suggested by staff and others. He explained that the pagination would be adjusted once all changes are made. He also noted that in the second paragraph on page 4 of the plan,it will be changed to read"The governing body of the City of Springfield will act. . ."rather than"The Springfield City Council acts . . ." He noted that the City Council would be making changes to the plan between now and November 15 as they receive input from other agencies. Board Member Ballew noted a sentence in the second paragraph of page 10 of the draft report. It appeared to have additional language that did not fit. Mr.Tamulonis said that would be removed. Discussion was held regarding the last sentence of the first paragraph on page 11 of the report,"Project activities are not expected to require the relocation or removal of any residential or commercial properties by the renewal agency". Mr.Tamulonis said it is referred to in the plan portion. Mr.Tamulonis discussed Tables 4 and 5 in the report. The consultant will provide an update in current dollars. The Goshen Fire District is also included. • Springfield Economic Development Agency Minutes November 1,2004 Page 6 Mr. Grile discussed"revenue foregone"and the assumption that revenue would happen without the Urban Renewal District(URD). That is a major assumption that is very questionable. Mr.Tamulonis noted the updates in Section 500 starting on page 21 of the report. He agreed with Mr. Grile's comment about the assumption this revenue would occur without the URD. Board Chair Fitch asked if it would help if the charts were to give a current present value, such as a base line. That figure would not be added into the total. Mr.Tamulonis said that could be included. Board Member Ballew said the title on Table 5 could be changed to"Present Value of Anticipated Revenues Foregone by Taxing Bodies". Board Chair Fitch said until the vote,the agency may not want to get into each project. Mr.Tamulonis said another meeting will be scheduled once the outcome of the vote is known. If the measure passes,more time can be spent on the project list. He will be attending the county meeting on November 10 and the City Council is scheduled to adopt this plan on November 15. Some ideas for new development requiring a zone change may require initiation by council. RESOLUTIONS ADJOURNMENT The meeting was adjourned at 6:52 pm. Minutes Recorder—Amy Sowa Christine Lundberg 41 Secretary