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CITY COMMISSION AGENDA ITEM |
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Department: |
City Manager’s Office |
Commission Meeting Date: 11-7-2017 |
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Staff Contacts: |
Diane Stoddard, Assistant City Manager Thomas M. Markus, City Manager Britt Crum-Cano, Economic Development Coordinator |
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Authorize the City Manager to execute a Cooperative agreement between the City, County and School District on NRA administration.
Authorize the City Manager to execute a Performance agreement between the City and Applicant.
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Executive Summary: |
At their July 11, 2017 meeting, the City Commission referred the request and analysis to the Public Incentives Review Committee (PIRC) for review and recommendation. A public hearing date was set for September 19, 2017 for the City Commission to consider the request.
PIRC reviewed the request and updated analysis at their September 14, 2017 meeting and recommended, on a vote of 7-1, assistance approval for both the IRB sales tax exemption and the 10-year, 75% NRA rebate.
At their October 3, 2017 meeting, the City Commission continued the public hearing from September 19, 2017 on the establishment of a Neighborhood Revitalization Area (NRA) at 800-815 Vermont Street for the Vermont Place project. After the public hearing, the City commission voted 3 to 2 in favor of authorizing on first reading, Ordinance 9303 establishing the revitalization area and approving the NRA plan at the 10-year, 75% rebate level, with the provision that Plan language be revised by City’s legal staff to tighten the provision excluding the applicant’s personal residence from NRA rebate participation. At the October 3, 2017 meeting, the City Commission also voted 3 to 2 to approve Resolution 7173 authorizing Industrial Revenue Bond (IRB) financing to access a sales tax exemption on project construction materials.
City legal staff has since revised language for the exclusion provision under Section 11 of the NRA Plan. A memo addressing the revision and a copy of the revised Plan are included in the attachments below.
At their October 9, 2017 meeting, the USD 497 School Board received the request from Vermont LLC for a 10-year, 75% Neighborhood Revitalization Area (NRA) for the Vermont Place project (800-815 Vermont Street); received PIRC’s recommendation, and voted 6-1 to support USD 497 participation in the NRA at the 10-year, 75% rebate level.
At their October 11, 2017 meeting, the County Commission received the request from Vermont LLC for a 10-year, 75% Neighborhood Revitalization Area (NRA) for the Vermont Place project (800-815 Vermont Street); received PIRC’s recommendation, and voted 3-0 to support County participation in the NRA at the 10-year, 75% rebate level.
The City Commission will now consider on second and final reading, Ordinance No. 9303, establishing a Neighborhood Revitalization Area at 800-815 Vermont Street. If the ordinance is approved, the Commission to also vote on authorizing the City Manager to execute a Cooperative agreement between the City, County and School District on NRA administration and authorizing the City Manager to execute a Performance agreement between the City and Applicant.
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Strategic Plan Critical Success Factor |
Economic Growth |
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Fiscal Impact (Amount/Source): |
Current benefit-cost results show a City ratio of 1.82 (for every $1 of public investment, a $1.82 is received in public benefit) and a County ratio of 2.72 (for every $1 of public investment, $2.72 is received in public benefit). There are no additional costs anticipated to the state or school district due to this project.
Fiscal impact is anticipated to be positive as currently vacant parcels generate very little tax revenue compared to taxing revenues anticipated to be received from the finished project, even after incentives are provided. |
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Attachments: |
Revised Applicant Request Letter and Updated Application 2017 Updated Benefit-Cost Summary & NDC Gap Analysis 2016 Project Technical Report and NDC Analysis (original report) 2017 NRA & IRB Request Processing Calendar Staff Memo on NRA Plan Revisions
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Reviewed By: (for CMO use only) |
☐TM ☒DS ☐CT ☐BM |
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