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HomeMy WebLinkAboutItem 01 Choices for Establishing a Downtown Urban Renewal District AGENDA ITEM SUMMARY Meeting Date: July 2,2007 Meeting Type: Work Session Department: Development Service~ .......... Staff Contact: Mark Metzget1Zfil . '\ \."\.YI,,- S P R I N G FIE L D Staff Phone No: 726-3775 ~\ C I T Y C 0 U N C I L Estimated Time: 40 minutes ITEM TITLE: CHOICES FOR ESTABLISHING A DOWNTOWN URBAN RENEWAL DISTRICT ACTION REQUESTED: Staff will brief Council on two choices for establishing an urban renewal district in the downtown, both of which require an election. Council is requested to give staff initial feedback on two questions, the answers to which will provide needed guidance. ISSUE STATEMENT: Discussion will focus on two questions that accompany the establishment of a downtown urban renewal district. These include: I) The timing of an election for authorization to form a district: Should a fall 2007 or a spring 2008 election be planned? 2) Shall a new downtown renewal district be formed. or should the Glenwood district be expanded to include downtown, as allowed under law? ATTACHMENTS: Attachment I: Matrix Showing Key Decisions for Election Date Options Attachment 2: Pros and Cons of Key Decisions Attachment 3: Aerial photo: Potential Boundaries for a Downtown Urban Renewal DISCUSSION/ FINANCIAL IMPACT: Attachment I illustrates two different approaches and election dates for establishing urban renewal downtown. Inherent in choosing a fall 2007 election date would be the need to give staff specific direction at or before the July 23rd meeting with Team Springfield to avoid returning during the August recess. The spring 2008 alternative would provide more time for planning and decision making, but would delay the capture oftax increment revenues for a year. Attachment 2 provides an analysis of the pros and cons related to the questions identified in the issue statement above. Fall 2007 versus a Spring 2008 election. A successful fall election would allow tax increment revenues to begin accruing July 1,2008. A successful spring 2008 election would start the revenue accrual on July I, 2009.' Meeting the deadlines for a November election requires a tight schedule that is achievable but leaves less time than a spring election for coordination and communication with the public, and affected taxing bodies. Form a new downtown renewal district or expand the Glenwood district? State laws allow for the expansion of an existing urban renewal district by up to 20% of the established district's area. Forming a new district allows a new boundary to be designated, without being limited to an acreage that is 20% of the Glenwood district (about 120 acres). Expanding the Glenwood district would allow increment revenues from Glenwood to be used in the downtown and vice versa. Forming a new district would keep the revenues separate. Attachment 3 shows three potential renewal district boundaries. If the Glenwood district is expanded into the downtown, then Boundary I or a similar boundary must be chosen to meet the 20% statutory limitation. Attachment 1 Matrix Showing Key Decision Points and Dates Based on Three Election Date Options KEY DECISIONS TO BE MADE BY COUNCIL (IN BOLD) Formal Notice Expand Select of Plan to Council Glenwood Conceptual Submit Ballot Planninq First Council /Form New Authorize District Title to Lane Commission & Election Reading Approves District Election Boundarv Countv Taxina Bodies* Dates of Plan Plan en ~ () Fall Ballot July 2nd or ~ July 23rd July 23rd July 23rd Sept 6th Oct 16th Nov 6th Nov 8th Dee 3rd .... Z 0 Spring i= () Ballot July 23rd Feb 11th Feb 11th March 28th . May 12th May 20th May 26th June 9th W ...J W * Informal dialogue will be ongoing Attachment 2 PROS and CONS of Key Decisions A. HOLD A FALL 2007 OR SPRING 2008 Election? Pros: 1. The primary advantage of a fall election is that if approved, tax increment revenue will begin accruing one year earlier than a spring election. 2. The documentation completed to establish the Glenwood Urban Renewal District can be used as a template for creating an urban renewal plan for downtown. 3. The existing plans and studies provide a wealth of source materials for identifying goals and projects for a downtown renewal district. 4. The existence of the Glenwood documentation and prior planning studies will greatly expedite the development of a downtown urban renewal plan, making a November election feasible. 5. There is a perceived momentum in the downtown. An early election date could take advantage of that momentum and create a high level of energy and movement around urban renewal in a short period of time. 6. November is a general election. The spring election is a presidential primary. The renewal district issue may receive more public attention in November when political races are not dominating the news. Cons: 1. The primary disadvantage of a November election is the tight time line for engaging the public and affected taxing bodies. A spring 2008 election date affords more time for planning and communication. 2. Adequate (but not ample) time exists for engaging the public, community organizations and affected taxing bodies partner agencies in the development of a downtown urban renewal plan. A spring election date would allow more time to engage stakeholders and the public would benefit the effort to secure buy-in and win citizen support. 3. The August Council recess and the packed agenda between now and the end of July will require Council to make key decisions in a timely manner that may feel hurried. Pros and Cons of Key Decisions July 2, 2007 1 B. EXPAND GLENWOOD BOUNDARY OR CREATE A NEW DOWNTOWN URBAN RENEWAL DISTRICT? Expand the Glenwood Urban Renewal District to Include Downtown Areas: Pros: 1. The primary advantage to expanding the Glenwood Urban Renewal District is the ability to take advantage of the existing Glenwood Renewal Plan. The existing plan would need to be amended, and would still need voter approval. 2. Expanding the district could allow tax increment revenues from Glenwood to be used for downtown projects. This may be viewed as a con as well. Cons: 1. The primary disadvantage to expanding the Glenwood Urban Renewal District is the possibility that the expansion would be a breach of the original intent of the district: use Glenwood increment revenues to benefit Glenwood. 2. Expanding the Glenwood District would require County participation. Glenwood has land that is both inside and outside the Springfield city limits and requires County participation to establish the district. A separate downtown renewal district, if drawn to include only land within the city limits, would not require County participation. 3. State law limits the expansion of an existing renewal district to 20% of the original district's area. This would limit the expansion to about 120 acres in the downtown or roughly the size of Boundary 1 shown on Attachment 3. Create a New Downtown Urban Renewal Plan Pros 1. The primary advantage of forming a separate downtown urban renewal district is that establishing a new district would allow a boundary to be drawn that best meets the needs of the downtown, without regard for the 20% statutory limitation imposed by expanding the Glenwood district. 2. Creating a downtown renewal district that is wholly within the city limits would be less complicated because all areas are annexed. 3. May create dissatisfaction and mistrust in Glenwood due to shifting of revenue from one area to another. 4. Provides its own source oftax-increment from downtown for downtown specific projects and preserves Glenwood funding for Glenwood projects. Pros and Cons of Key Decisions July 2, 2007 2 Downtown Urban Renewal Potential District Boundaries N City Limits "[~1 Washburne Historic District C Boundary 1 C Boundary 2 C Boundary 3 . ~ L