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TIF #2 Board of Directors Minutes - 01/13/2012REINVESTMENT ZONE #2 TAX INCREMENT FINANCING BOARD MINUTES January 13, 2012 Members: Ben Filer, Chairman • Ann Bishop • Jim Chandler • John Luig • Jerry Taylor • Michael Smith, Council liaison • Guest: Andy Lee, representing Realtex Development Corp. Staff: Leo Bethge, Planner 11 • Karen Gagne, Planning Administrator • Kevin Hugman, Assistant City Manager • 1. Call to Order & Introductions Chairman Filer called the meeting to order at 11:00 a.m. 2. Approval of Minutes Chairman Filer called for a motion to approve the minutes from the June 15", 2011 meeting; Mr. Chandler introduced a motion approving the June 15th, 2011 TIF#2 meeting minutes, motion was seconded by Mr. Taylor. The minutes were unanimously approved. 3. Status Report: Project & Financial Update Ms. Gagne discussed the development progress within the T1 F#2 Boundaries. Demolition started this week on the Strategic Realty building at Call Field and Lawrence Road. The building was previously stripped, with removal of asbestos. Full demolition should be completed by February 1st. The realignment project is planned for completion before Thanksgiving. A financial update was not provided since an increment won't be released until May. She further stated the Cavender's Project, on Maplewood and Lawrence, will be reviewed at the February Council for the cost of the borings, for $15,625. Mr. Taylor informed the Board he was unsuccessful since no one ownership property group is base d attempted to have discussions with Kohl's, though returned his calls. Mr. Hugman stated Kohl's in Canada; the City's Property Administrator was TAX INCREMENT FINANCING ZONE #2 January 13, 2012 Page 1 successful with discussions with the sub -tenants of Kohl's. The sub -tenants were beneficial by informing the right people. In addition, the Faith Village Shopping Center group {Triton Development} signed the documents for acquisition. Chairman Filer asked if Triton Development requested access onto Call Field. Mr. Hugman replied Triton did not request access and it was discussed during the meetings. Utility companies are on track to relocate their lines further west of the existing Lawrence Road, near MCAlisters Deli. The utilities will be situated within the realigned Lawrence Road. Mr. Hugman noted the Rhea Road/Call Field realignment project is on track and will be completed before the Christmas season. 4. Review, Discussion and Action Regarding Funding Support Letter for Proposed Meadow Place Apartments (McNiel Ave./Regent Drive) Ms. Gagne stated the reason for the meeting was to consider supporting a proposed affordable housing project {Meadow Place Apartments} by Realtex Development Corporation. Realtex representatives were not able to attend but Mr. Lee, local agent for Realtex, was available to discuss this potential development project. Staff discussed the packet provided; including a report from Realtex, financial plan, and Mr. Lee's letter of current and future development within the area of the T1 F#2 boundaries. Mr. Lee discussed the last time he approached the TIF#2 Board was to review the reprioritization of projects in November 2010. The majority of projects were focused around the planned development in the vicinity of Wenonah - from Maplewood north towards Kell. He discussed the projects that were completed, including Denim and Diamonds along Kell, Aldi's along Lawrence, and Jason's Deli planned for Parker Square. Mr. Lee further discussed the future priority of Wenonah, since at one time an apartment complex was planned for the area west of Arthur Street. Mr. Lee discussed existing apartment complexes that Realtex completed, including Washington Village(Eastside-TIF#3)and Woodview Apartments {32ndand Holliday}. g g This served as an intro to the main discussion of a proposed apartment complex planned east of McNiel, and north of South Regent. The site is 14 acres directly west of the City Transfer Station. Mr. Lee discussed the Texas Department of Housing and Community Affairs (TDHCA) tax credit program, and the allocation of potential tax credits, for the development of an affordable housing apartment complex. TDHCA's criteria has Wichita Falls situated in Region #2 which also competes with project submittals from Abilene. This year Wichita Falls could be selected since last year Abilene } (our p competitor) was chosen. The tax credit application is due March 1st, and the underscoring Y b the state is due June Vt. By July 31 St, the Board will make its recommendation. The scoring criteria, as he discussed, is weighed more since this area is located within an Empowerment or Reinvestment Zone. The future rent is based on an adjusted average income, though units will be rented based on the market rate. The State wants local projects where the real need for development is based. He stated it's important to obtain the support from the City, and he is working closely with Mr. Hugman. Realtex is asking for a support letter from the TIF#2 Board, since this letter would be worth 20 points, and to work with Mr. Hugman to draft a development agreement to extend the 75 foot right of way with additional access points. TAX INCREMENT FINANCING ZONE #2 January 13, 2012 Page 2 Mr. Lee noted the total site includes 14 acres, though only eight acres is planned for multi -family development. The remaining six acres is planned for future uses, i.e., an office complex, Maplewood extension and other commercial uses. The plan is for Realtex to come back to the T1F Board next month with a Preliminary Site Plan and to revisit Engineering regarding the location of the drainage box culverts. He needs to review the status of the Conditional Letter of Map Revision (CLOMR) for the Lawrence Road Walmart and to work with Engineering to finish up on the LOMR for the Quail Creek Shopping Center. Mr. Lee noted they need assurance for proper drainage through the McGrath Creek culverts. Chairman Filer asked for the cost of the properties. Mr. Lee stated the cost is approximately $6.3-$8 million dollars for the developed project, though the surrounding properties and other uses may come into play to change this cost estimate. Ms. Bishop questioned where the future project will be located. Mr. Lee stated the project will be located south of the Maplewood Avenue extension, west of the Transfer Station, and east of McNiel Avenue. If Maplewood is not extended then access could be from North Regent Drive to the west, and possibly work with an adjacent land owner for access to Call Field Road to the south. Chairman Filer questioned if there is a waiting list for affordable housing. Mr. Lee stated there is a waiting list maintained through the City's Housing Division (Section 8), though for this complex only a small portion, possibly at 1 %, would have the availability of housing vouchers. Mr. Lee explained in order to be approved for housing vouchers they must be available, and both the complex and residents must be qualified. He further stated this project would be good for the local housing market. Based on the City's Home Buyers Program, residents can qualify for a single family home, which will open additional units at Washington Village and Woodview Apartments, for future applicants to move in. Mr. Lee concluded by saying Realtex is currently in the pre -application process with TDHCA and appreciated consideration from the T1F#2 Board. Chairman Filer thanked Mr. Lee for his presentation. Ms. Gagne provided handouts to discuss how this potential multi -family development would produce an anticipated increment for the TIF#2 District. Staff contacted the Wichita County Appraisal District to determine whether a tax credit project would be taxable. This project would be an income producing taxable project contributing to the TI F #2 increment though the base rent will be lower, as compared to a standard market -rate apartment complex. Staff referenced Page 36 of the Project Financial Plan, indicating speculative development of apartments was noted for 3601 McNiel. Staff discussed zoning, noting the site is currently zoned Limited Industrial (LI), though Planning Staff recommends rezoning the entire area from LI to General Commercial (GC). Long term this is intended for the whole commercial area around the Lawrence Road and Maplewood Avenue vicinity since over the past few years it is characterized by commercial activity, as compared to previous uses that served as a light industrial district. A rezoning to General Commercial is needed in order to proceed with this development since L1 doesn't permit multi -family development. TAX INCREMENT FINANCING ZONE #2 January 13, 2012 Page 3 Ms. Gagne referenced the staff memo which outlined roles of T1 F#2 Board Members. Staff also referenced the Metropolitan Planning Organization's (MPO) 2011 prioritized project ranking. Maplewood expansion was rated 7.25. The MPO does consider this project as a high ranking transportation priority, though the Rhea Road/Call Field/Lawrence realignment intersection was ranked higher, along with the northerly extension of Wenonah towards Kell Boulevard. Counselor Smith recalls the MPO's Policy Committee discussion, noting the realignment was a higher focus than Wenonah. Mr. Taylor questioned the location of the City Transfer Station since it's located on valuable land. Currently, land within this area is worth $5 per square foot. if Regent North and/or South connects to Maplewood the land value will increase. He questioned the location of apartments for this area. Mr. Chandler asked where Wenonah stands as one of the priorities. Ms. Gagne stated it's 6.13 on the priority list. Counselor Smith stated the Call Field realignment was rated as 9.88 since this project needs to be completed. when this is completed the Wenonah extension project will go up in the ranks. In response to this Ms. Bishop questioned South Regent since it's not on the list. Ms. Gagne stated the Thoroughfare Plan originally showed Regent as a "horseshoe" on the plan and more recently the T1 F #2 plan showed Regent North connecting with Maplewood Extension Phase III with an office complex north of Regent Drive. Mr. Chandler recommended support for the Maplewood extension and relocating the Transfer Station to allow for full development frontage along Maplewood. Mr. Taylor recalled the Transfer Station has been there for 20 plus years. He questioned if this is the best use for this growing area. Chairman Filer stated the Transfer Station is centrally located, clean, well utilized, and was situated at a time when this was not the middle of the city. Mr. Taylor provided an example of Plano's Transfer Station, how the Wichita Falls facilities are more advanced and how people don't realize it's situated on Lawrence Road. Mr. Hugman noted staff are open to consider relocating the Transfer Station. Chairman Filer stated there is a need for housing in Wichita Falls that is more affordable. Mr. Hugman informed the Board that another affordable housing project is proposed downtown. Ms. Bishop questioned which project the Board should support. Mr. Chandler recommended both affordable housing projects for the city. Ms. Bishop further questioned the location of the proposed downtown project. Staff provided background information on the downtown project, noting a tentative location along 7th and Austin Streets. Counselor Smith discussed the location of the proposed downtown project, indicating it will be on the former Pistocco/Patterson parking lot. Ms. Bishop questioned if the Board provided a letter of support for the T1 F#2 project if this would hurt the downtown project? Ms. Gagne stated many factors are involved in the ranking of these affordable housing projects. TDHCA considers T1F#2 as a special management district. This allows a Realtex project the ability to receive additional "neighborhood/community" points based on a letter of support from the Board. She stated staff are providing equal support to both the downtown and TI F#2 development projects. Ms. Gagne further noted downtown project staff worked with TAX INCREMENT FINANCING ZONE #2 January 13, 2012 Page 4 Downtown Wichita Falls Development Inc., a 501(c)3 organization, to provide a support letter so they can also receive community support points. Counselor Smith stated the Transfer Station site is a "gold mine." Mr. Taylor stated the approximate area of the Transfer Station is approximately the same size as the Quail Creek Shopping Center. With all the shops it's probably 20 acres. Counselor Smith would like to see an opportunity of what Realtex can plan for the site -- let them try. Equally, still promote the Wenonah extension to the north as a priority for future growth. Chairman Filer wanted the Board to abstain the thought of Chicago's urban public housing image of Cabrini Green. He stated that Wichita Falls needs affordable housing, for the City and for those stationed at Sheppard Air Force Base. Ms. Bishop moved to recommend drafting a letter of support from the T1F #2 Board for a future affordable housing development located within the T1F##2 Zone. The motion was seconded by Mr. Chandler. The matter was unanimously approved. 5. other Business Ms. Gagne stated Realtex will provide development priorities at the next T1 F##2 meeting. Chairman Filer stated there are no additional funds until 2015, although with more growth in the Zone that date could get moved up to 2014. The Board might need to consider reprioritizing the rating of street improvements at the next meeting, such as Maplewood to McNiel, versus Wenonah to Kell. O 6. Adjourn Chairman Filer motioned to adjourn the meeting. Mr. Chandler seconded the motion. The motion was unanimously approved. The meeting was adjourned at 12:12 pm. Ben Filer, Chai an Date TAX INCREMENT FINANCING ZONE #2 January 13, 2012 Page 5