HomeMy WebLinkAboutItem 02 Development ValuesAGENDA ITEM SUMMARY Meeting Date:
4/24/2023
Meeting Type:
Regular Meeting
Department:
City Manager's Office
Staff Contact:
Allie Camp
S P R I N G F I E LD ECONOMIC Staff Phone No:
541-726-3688
DEVELOPMENT AGENCY Estimated Time:
20 Minutes
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ACTION
No action requested, for discussion only.
REQUESTED:
ISSUE
To begin a conversation to understand the SEDA Board's considerations in
STATEMENT:
determining its support for development projects downtown.
ATTACHMENTS:
1. Albany, Oregon's Urban Renewal Agency project priority ranking
2. Board Briefing Memo- Policy Overview of Downtown Urban Renewal
Plan
DISCUSSION/
Springfield is at a point in time when development investments from SEDA in both
FINANCIAL
downtown and Glenwood are beginning to spur inquiries from the private sector.
IMPACT:
Understanding the SEDA Board's interests and priorities for downtown will assist
in defining priorities for SEDA's development investments moving into the future.
Development is a focus of the Downtown Urban Renewal Plan, and tax increment
financing is identified in the Plan as an available resource for public/private
partnerships in development. The term development captures a broad range of
project types and outcomes. This means that many different types of projects could
be brought forward for tax increment support under the Urban Renewal Plan.
Albany, Oregon is a community comparable in terms of size, economic
development focus, and access to Urban Renewal. Attachment 1 demonstrates the
values and considerations that the Urban Renewal Agency utilizes for assessing
projects to be supported with tax increment.
This is a forward -thinking discussion opportunity for downtown, and a discussion
that will take more than one work session. This conversation will connect to
upcoming and future items like the Housing Density Tax Exemption program,
acquisition and/or disposition of SEDA property, and opportunities to support new
private investments as they arise. The Board Briefing Memo (ATT 2) highlights
sections of the Downtown Urban Renewal Plan and Downtown Refinement Plan to
ground you in your discussion.
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Project Evaluation Grid:
Request:
Attachment
Item Description Staff Analysis/Comments
Overall Goals
A)
CARA Goal &
Does the project further the Town Center
Objectives:
Plan?
The purpose of this
CARA Plan is to
Which of CARA's objectives does the project
eliminate blighting
meet?
influences found in
CARA Key Objectives:
the CARA, to
• Attract new private investment to the
implement goals and
area.
objectives of the City
• Retain and enhance the value of existing
of Albany
private investment and public
Comprehensive Plan,
investment in the area.
and to implement
development
CARA Additional Objectives:
strategies and
• Provide a safe and convenient
objectives for the
transportation network that
CARA. The goal and
encourages pedestrian & bicycle access
objectives for the
to and within the town center.
CARA have been
• Preserve the Historic Districts, historic
defined as follows:
resources and existing housing in the
area.
CARA Goal:
* Create a readily identifiable core that is
To revitalize the
unique and vibrant with a mixture of
Central Albany
entertainment, housing, specialty
Revitalization Area
shops, offices, and other commercial
by implementing the
uses.
Town Center Plan
• Increase residential density in the area.
developed through
• Encourage the development of new
the Central Albany
forms of housing and home ownership.
Land Use &
• Enhance and protect the community
Transportation Study
and environmental values of waterway
(CALUTS) using a
corridors in the area.
citizen -driven
• Provide an enriching environment and
process.
livable neighborhoods.
B)
CARA Planned
Which project category and activity in the
Projects
UR Plan does this project fulfill? (See CARA
Project Activities document, or Table 2 of
the UR Plan and Report.)
C)
Development Pattern
Does it achieve desired land use (e.g.,
(Highest and Best
mixed-use, higher density) and/or
Use)
transportation objectives (e.g., Esplanade,
pedestrian -friendly areas)?
Is the proposed project desired in this
location and the highest and best use of the
property?
D)
Blight
Would it remedy a severely blighted
building? How? Does the project utilize a
vacantspace?
Attachment 1 Page 1 of 2
Attachment
E) Preservation
Would it rehabilitate or sensitively
redevelop a historic property?
Does the general public benefit (i.e.
F)
Vitality/People
Attractor
restaurant, carousel, something they can go
to; does the project enhance the public's
experience of the space; is it a business we
are seeking)?
G)
Retail Hotspot (First
Is the project located in the Retail Hotspot?
Avenue between
If so, will the first floor use be active retail,
Lyon and Calapooia)
as recommended in the Retail Refinement
Plan?
H)
Sustainable Building
Will the building be built using sustainable
practices including LEED or others?
I)
Residential
Is there a residential component? How
many units?
Economic Development
J)
Bring new business
Will a new business open or come to
to Albany
Albany as a part of this project?
K)
Job Creation
Will the project create additional jobs? How
many, what types and what salary level?
L)
Local Labor and
Has applicant specifically called out a
Materials
commitment to use a certain percent or
amount of local labor and/or materials?
Financial
M) Ratio Proposed public funds
Private funds
% of CARA Investment
N)
Financial Impacts
What are the financial risks and/or
financial benefits to CARA?
0)
Gap
What is the "Gap" or need of the developer?
P)
Private Risk
What is the risk for the developer? What is
their skin in the game?
Q)
CARA/City funds
Has the project received other CARA/City
funding in the past?
R)
Tax Increment ROI
Is the ROI on this project less than 5 years,
less than 7 years?
Attachment 1 Page 2 of 2
MEMORANDUM Springfield Economic Development Agency
Date: 4/24/2023
To: Nancy Newton BOARD
From: Niel Laudati, Assistant City Manager BRIEFING
Allie Camp, Economic Development Manager
Subject: Development Values MEMORANDUM
ISSUE: To begin a conversation to understand the SEDA Board's considerations in determining
its support for development projects downtown.
BACKGROUND:
The following sections have been taken out of the Downtown Urban Renewal Plan to provide a
foundation for SEDA's conversation on Development Values. The land use planning context for
the Downtown Urban Renewal Plan builds off the Downtown Refinement Plan and the Metro
Plan, and both are referenced throughout. This interconnectedness assures that our land use
policy "arrows" for downtown are all pointing in the same direction.
Plan Purpose
"The primary goal of this Downtown Urban Renewal Plan is to assist in the revitalization of
business and elimination of blight in the downtown area. Urban renewal is ideal for the
encouragement of the type of high quality, commercial, industrial, residential and mixed use
development that is vital to the economic growth of the City of Springfield. This cannot readily
be done without public involvement due to multiple ownerships; high land prices; and a mix of
uses that are not conducive to development. The Downtown Urban Renewal Plan includes
projects, activities, and actions that treat the causes of the blight and deterioration in the
Downtown Urban Renewal Area" (Page 4).
Plan Goals
The eight goals of the Downtown Urban Renewal Plan are not newly discovered or unique to
Springfield. They are derived from previous planning efforts and adopted planning policy
documents including the Downtown Refinement Plan, and the Metro Plan with its associated
functional plans. As broad categories of intent, the Downtown Urban Renewal Goals are listed
below (and included within the plan, page 7-8; more detail provided in Appendix 1, Page 38-
41):
1. Promote Public and Private Improvement
2. Rehabilitate Building Stock
3. Improve Streets, Streetscapes, Parks and Open Spaces
4. Make Utility Improvements
5. Construct or Rehabilitate Parking Facilities
6. Construct or Rehabilitate Public Facilities
7. Improve and Expand Housing Opportunities
8. Improve Public Signage and Make Gateway Improvements to the Downtown
The focus of SEDA's conversation in this work session is Development Values which most
closely connects with Goal 1, however these goals are not mutually exclusive, especially when
considering building and investment. The detailed explanation of Goal 1 is: "To promote public
and private development, redevelopment, and rehabilitation within the Urban Renewal Area to
help create jobs, tax revenues, and self-sustaining, vital, and vibrant commercial and industrial
areas.
Goal 1 identifies the following Objectives:
1. "Enhance the environment for development and investment through improvements to
streets, streetscapes, parks, and public buildings and spaces.
Attachment 2 Page 1 of 2
MEMORANDUM
Page 2
2. Assist property owners in rehabilitating buildings so they can accommodate more
intensive commercial, mixed-use, and industrial activity;
3. Help create economic vitality by creating activities and encouraging uses that bring a
significant number of jobs, employees, potential shoppers and investors throughout the
Renewal Area (Page 38)."
Plan Outcomes
In Section 600 the Plan describes potential projects to be undertaken to meet the Plan's defined
objectives. Potential projects are grouped as Public Improvements; Preservation, Rehabilitation,
Development, and Redevelopment; Property Acquisition and Disposition; and Plan Technical
Studies and Administration. For this Development Values conversation, projects classified as
Preservation, Rehabilitation, Development, and Redevelopment is included (page 20-21).
"Redevelopment through New Construction.
It is the intent of this Plan to stimulate new investment by public, private, non-profit, or
community-based organizations by facilitating redevelopment of underutilized property,
and in particular, to assure that new investments serve to benefit the existing residents
and businesses in the area. Redevelopment through new construction maybe achieved in
two ways:
a. By public or private property owners, with or without financial assistance by the
Agency;
b. By acquisition of property by the Agency for redevelopment or resale to others
for redevelopment."
2. "Redevelopment and Rehabilitation Financing.
As it may deem appropriate in order to achieve the objectives of this Plan, SEDA may
set guidelines, establish loan programs and provide below-market interest rate and
market rate loans and provide such other forms of financial assistance to property
owners and those desiring to redevelop, rehabilitate, and acquire property. These grant
and loan programs will be consistent with the provisions set forth in Section 800 of this
Plan. Any grant and loan programs developed for owner -occupied residential structures
will be limited to assistance for primarily low- and moderate -income households in
correcting health and safety problems and substandard housing."
3. "Preservation, Rehabilitation, and Conservation.
Projects and activities in this category will enable SEDA to advance renewal and
comprehensive plan goals for (i) improving Springfield's economy, and (ii)improving
the appearance and vitality of the Downtown area. As allowed by state and federal law,
SEDA may participate, through loans, grants, or both, in assisting development of new
public and private buildings and facilities in the renewal area by establishing grant and
loan programs. These programs might include, for example, grants and loans for private
building fagade improvements and for eliminating substandard structural conditions and
interior remodeling. SEDA may make this assistance available as it deems necessary to
achieve the obiectives of this Plan."
RECOMMENDED ACTION: No action requested, for discussion only.
Attachment 2 Page 2 of 2