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TIF #2 Board of Directors Minutes - 01/11/2007MINUTES REINVESTMENT ZONE #2 TAX INCREMENT FINANCING COMMITTEE M I N U T E S January 11, 2007 Members: Ben Filer, Chairman Ann Bishop Jim Chandler Jerry Taylor Rick Hatcher, Council liaison Staff : David A. Clark, Director of Community Development Scott Taylor, City Public Works Director Davis Powell, City Engineer Karen Gagne, Planner Guests: Bobby Schaaf, Paul Clark, Martin Litteken, Joe Neld, Charlie Berry Members Absent: Al Flack, Jr. I. Call to Order, Introductions & Oath of Office for Board Members Chairman Filer called the meeting to order at 3:31 p.m. and asked Board members to introduce themselves and state their background. Mr. Clark explained the reasoning for the Oath of Office formality for any volunteer appointed to serve on a City Board or Commission. He then requested members review, recite and agree to the Oath of Office statement. All members present (Filer, Bishop, Chandler, Taylor) were sworn into office as TIF #2 Board members. II. Approval of Minutes Ms. Bishop introduced a motion to approve the minutes from the August 11, 2006 meeting; Mr. Chandler seconded. The minutes were approved unanimously. III. Update on Progress and Financial Structure Mr. Clark gave an update on the preliminary progress of the TIF #2 Plan and referred Board members to page 35 of the Project Plan. When staff researched and prepared the Plan, the estimated Zone increment was an estimate beyond Phase I. In the first phase, the Zone captured redevelopment projects mid -construction on Call Field Road TAX INCREMENT FINANCING DISTRICT #2 BOARD January 11, 2007 Page 1 (Kohl's &Power House gym) and Lawrence (restaurants) so there was a known increment of approximately $34,000. According to the Wichita County Appraisal District and Taxing office, it is anticipated the first increment allocation to TIF #2 Fund during 2007 will be approximately $61,500 - $66,000 for the first full year since creation in August 2005. Mr. Clark noted additional development continues to occur in the Zone that wasn't anticipated in the Project Plan, including the relocation of The Ember Shop to a new site on Mc Niel. Phase II potential projects were incorporated but actual valuation &taxation levels were unknown with the exception of a new restaurant and furniture complex on Call Field (Logan's &Furniture Row). Phase II increment will be dispersed to the Zone in 2008 based on the 2007 tax year capturing the first component of Quail Creek Shopping Center. Mr. Clark commented Phase II projects (ie. Quail Creek) are progressing according to schedule. A proposal is in place for the former Joann's plaza at the southwest corner of Rhea &Call Field Road. Mr. Clark along with Public Works Director Mr. Scott Taylor and City Engineer Mr. Davis Powell informed the Board of progress on public improvements associated with the Zone. Mr. Powell indicated the first segment of Phase I Maplewood extension is complete and the City anticipates going to bid in July for Phase II, with a project letting date in August 2007. Mr. Clark indicated that an agenda item will be presented to City Council in early February requesting a street name change from Trade Drive and Avenue Z to Maplewood. Mr. Chandler inquired if 4B Funds were allocated to this project? Mr. Clark responded that from his recollection approximately $4 million in 4B Funds were loaned to the TIF#2 Fund to help move the public infrastructure projects ahead until an increment was generated. IV. Discussion of Potential Cost Participation in Bridge Structure Across Quail Creek to Facilitate Additional Investment Mr. Filer referred discussion to Mr. Clark who explained the situation for continued development in the area adjacent to the Quail Creek Shopping Center. He referred members to the preliminary site plan with the meeting packets. Public Works staff commented Wenonah is an exception to the typical street since access is required to the TXU/Oncor substation on the other side of the creek bed. A 120ft extension would be necessary to connect Wenonah to the back side of the Wichita Square plaza directly southeast of the Academy location. Mr. Clark stated this item was presented to request input from the TIF #2 Board and facilitate discussion. Mr. Bobby Schaaf provided a detailed design sketch of a proposed development immediately south of the Quail Creek channel bed, at 3905 Lawrence Road. He added by having an access bridge between the Quail Creek project and his project it will allow traffic access via the parking lot. At this time, Parcel B only has 22ft frontage on Lawrence Road which results in access problems; he added that his tentative development will be +/- 60,000 sgft with an average cost of $95/sqft valuing the finished project at $6 million plus land value and as a result of the drainage channel improvements it removes 3901 and 3905 Lawrence (Parcel B & C) out of the 100-yr floodplain. Mr. Litteken, surveyor retained by Mr. Schaaf, developed a cost estimate of $148,000 fora 36ft wide bridge access (2 lanes with turn lane). TAX INCREMENT FINANCING DISTRICT #2 BOARD January 11, 2007 Page 2 Mr. Clark informed the TIF #2 Board the request/bridge project is not outlined in the Plan but the TIF #2 Plan allows for other, identified necessary projects that meet the `public improvement criteria.' He commented that the current proposal from Mr. Schaaf would be considered in the private development realm although the bridge access would facilitate additional development — therefore the question before the Board is a leverage factor. Staff noted the Base Year appraised value for Parcel C was $233,599 and the projected development value from Mr. Schaaf was significantly higher which captures an increment for the TIF #2 Zone. Mr. Schaaf inquired if a portion of the access bridge costs could be considered a TIF improvement or look at some level of assistance. He added that a tenant is willing to locate on the 4,500sgft pad site with only Lawrence Road access until the south lanes of Maplewood are built along with the bridge. Mr. Clark reiterated the key point for the TIF #2 Board to consider —what is the degree of public purpose for the bridge access. Ms. Bishop requested clarification about the bridge over the creek/drainage improvements. Mr. Taylor responded that a bridge connection will be designed at the time of drainage improvements and funding will be addressed. Mr. Chandler inquired about a cost projection for the eastern bridge (Wenonah). Mr. Taylor indicated no cost estimate at this point but in discussion with TXU to develop an agreement for continued access to their substation. Wenonah will be designed to cross as either a street or a bridge. Ms. Bishop asked about the bridge width. Mr. Taylor said its design will be 4 lanes (52ft width) and eventually to the south it will dead end into 3 properties. Mr. Chandler questioned how generous was the 4B Fund? Mr. Clark stated project costs were significant for the development of Wenonah and 4B review can be a political process when used to augment the TIF #2 Fund projects until the Fund can repay. Ms. Bishop asked if the drainage project will guarantee reduction of the floodplain. Mr. Taylor explained a `conditional letter of map revision' (CLOMR) filed with FEMA was approved and allowed the City to issue building permits for development. The floodway will be limited to the drainage channel upon completion of the drainage project. Quail Creek Crossing owners initiated the drainage design work and submitted the CLOMR to allow development of the site. The chairperson asked for estimates of anticipated traffic flow. Mr. Taylor responded preliminary traffic projections were outlined in a Kimley-Horn &Associates study completed in 1999 when potential routes for the Callfield Reliever were outlined. Mr. Filer commented there was an absolute need to have an access point across the creek channel. Mr. Taylor noted one of the City's goals is to align streets and avoid off -set intersections (ie. Call Field/Rhea/Lawrence). It would be advantageous to develop preliminary roadway designs for south Wenonah with a future connection across the channel factored into the proposed cost/right-of-way requirements. Mr. Chandler inquired if a TIF request was necessary for the Wenonah extension and channel connection? Mr. Clark stated this was a continuous challenge for TIF #2 — identification of public projects coupled with identifying long term funding for those projects. In order to proceed with the plans for Wenonah it is dependent on other development activity to assist with roadway construction costs. The TIF #2 Plan public improvements section does include the construction of Wenonah from Kell TAX INCREMENT FINANCING DISTRICT #2 BOARD January 11, 2007 Page 3 frontage roads south to Trade/Maplewood but no connection across the channel was identified. Mr. Clark added each project in the future will be a negotiated process. Ms. Bishop asked if we were setting a precedent considering the channel access. Mr. Clark replied the TIF #2 Board is essentially covering new ground with any of these proposed projects. Mr. Clark put the item for discussion — potential consideration of the Wenonah bridge - back to the TIF #2 Board members to obtain their final opinion on the subject. Mr. Chandler asked if the Board considered adding Wenonah bridge to the public improvements would they be committed to building it and using the TIF increment. Mr. Taylor discussed the process, noting a request would have to be submitted to Public Works from the TIF #2 Board to approve the Wenonah Street bridge as part of the infrastructure projects. Mr. Powell reiterated the City is required to provide TXU access to their substation on the south side of the channel. Initially an 18ft driveway was considered with only minimal visibility. However, if the project is considered public access, the cost would be approximately 3x more and would end up with a 52ft drive and a boxed -in drainage channel. The costs for channelizing the culvert may be deferred to the City's storm water drainage fund but Mr. Taylor pointed out, those funds can't be used for bridge construction. Mr. Chandler commented Board members need to know tentative project costs prior to agreeing to include it in the Plan, ie. $500,000? Mr. Taylor and Mr. Clark stated costs may be around $350,000. Mr. Chandler suggested that the TIF #2 Board explore the potential for 4B Fund involvement in the Wenonah Street bridge access project. Mr. Clark indicated city staff would explore the potential for both projects and provide a report to the TIF#2 Board. Mr. Filer and Mr. Clark stated the research would be compiled within the next few months as developments are seriously looking at the area. V. Adjournment Mr. Chandler motioned to adjourn. Ms. Bishop seconded the motion and the vote was unanimous. The meeting adjourned at 4:25 p.m. Staff invited Board members to meet on -site at the TIF#2 Zone to view progress on the Quail Creek project & Phase I of the Maplewood extension. Ben Filer, Chairman Date TAX INCREMENT FINANCING DISTRICT #2 BOARD January 11, 2007 Page 4