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HomeMy WebLinkAboutResolution No. SEDA2024-04- 04/22/2024 SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY (SEDA) RESOLUTION NO. SEDA2024-04 A RESOLUTION RETROACTIVELY ASSUMING PAYMENT OF CERTAIN SYSTEM DEVELOPMENT CHARGES AS ESTALISHED BY SPRINGFIELD MUNICIPAL CODE SECTION 3.406 FOR THE PERIOD FROM JULY 1, 2014 THROUGH DECEMBER 31, 2023 WHEREAS, the Downtown Urban Renewal Plan section 600.B and the Glenwood Urban Renewal Plan section 6003 authorize the Springfield Economic Development Agency (SEDA) to provide financial assistance for new construction, redevelopment, and rehabilitation of properties within the respective urban renewal areas; WHEREAS, on June 10, 2013, the SEDA Board adopted Resolution SEDA2013-04: A RESOLUTION OF THE BOARD OF THE SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY PROVIDING AN INCENTIVE TO DEVELOPMENT IN DOWNTOWN AND GLENDWOOD BY ASSUMING CERTAIN PORTIONS OF THE SYSTEMS DEVELOPMENT CHARGES AS ESTABLISHED IN THE SPRINGFIELD MUNICIPAL CODE, SECTION 3.406, AND SPECIFYING AN EFFECTIVE DATE; WHEREAS, Resolution SEDA2013-04 assumed the financial obligation for certain systems development charges (SDCs) imposed for development consistent with either the Downtown Urban Renewal Plan or Glenwood Urban Renewal Plan for the period from July 1, 2013 to June 30, 2014; WHEREAS, the City and SEDA staff continued to waive collection of certain SDCs for development in each urban renewal area after June 30, 2014 on the mistaken belief that said waiver was authorized by the Board; WHEREAS, on January 8, 2024, the Board adopted Resolution SEDA2024-03, assuming payment of SDCs for the period January 1, 2024 to December 31, 2028: A RESOLUTION INCENTIVIZING DEVELOPMENT IN THE DOWNTOWN URBAN RENEWAL AREA AND GLENWOOD URBAN RENEWAL AREA BY ASSUMING PAYMENT OF CERTAIN SYSTEM DEVELOPMENT CHARGES AS ESTALISHED BY SPRINGFIELD MUNICIPAL CODE SECTION 3.406 THROUGH THE PERIOD ENDING DECEMBER 31, 2028 WHEREAS, the Board has reviewed the SDCs that were waived from July 1, 2014 to December 31, 2023 and finds that the waived SDCs had the effect of stimulating development in each urban renewal area in a manner consistent with the Downtown Urban Renewal Plan and Glenwood Urban Renewal Plan; WHEREAS, the Board concludes that it is in the public interest to assume the financial obligation for waived SDCs arising from development and redevelopment in each of the urban renewal areas for the period July 1, 2014 to December 31, 2023, in the amount of $1,873,459.65 ($570,718.03 for Downtown and $1,302,741.62 for Glenwood); and {00031599:1} Page 1 of 2 WHEREAS, the Board wishes to authorize the Springfield City Manager, Finance Director, and Development and Public Works Community Development Division Director to develop and execute an interagency memorandum of understanding between the City and SEDA to provide for SEDA reimbursement to the City of the waived SDCs assumed by SEDA, NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SEDA, AN URBAN RENEWAL AGENCY OF THE CITY OF SPRINGFIELD, AS FOLLOWS: Section 1: SEDA hereby assumes the financial obligation for up to $1,873,459.65 arising from transportation, stormwater, and local wastewater system development charges for new construction, redevelopment, and rehabilitation projects within the Downtown Urban Renewal Area and Glenwood Urban Renewal Area that were waived during the period from July 1, 2014 to December 31, 2023. Section 2: The City Manager, City Finance Director, and Development and Public Works Community Development Division Director are directed to develop and execute a memorandum of understanding (MOU) between the City and SEDA providing for the payment to the City of SDCs assumed by SEDA as follows: A. For systems development charges waived within the Downtown urban renewal area as provided in Section 1 of this Resolution, SEDA will pay to the City an amount not to exceed $570,718.03. B. For systems development charges waived within the Glenwood urban renewal area as provided in Section 1 of this Resolution, SEDA will incur SDCs as a debt owed to the City of Springfield not to exceed $1,302,741.62, to be paid to the City upon terms specified in the MOU, to allow SEDA funds to be strategically applied to costs of eligible public improvements in Glenwood Urban Renewal Area. C. SEDA's debts incurred under this Resolution will be subordinate to all other indebtedness owed by SEDA to the City and to all other borrowings approved by SEDA that are secured by tax increment revenues. ADOPTED by the Board of the Springfield Economic Development Agency this22nd day of April , 2024 , by a vote of 7 for and 0 against. ATTEST: Board Secretary {00031599:1} Page 2 of 2