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TIF #2 Board of Directors Minutes - 01/05/2009w REINVESTMENT ZONE #2 TAX INCREMENT FINANCING COMMITTEE MINUTES January 5, 2009 Members: C OQ' l I. Z3 -t U Ben Filer, Chairman • Ann Bishop Jim Chandler • James Welbum q t • Michael Smith, Council liaison • Staff: David A. Clark, Director of Community Development • Russell Schreiber, Director, Public Works • Davis Powell, City Engineer • Pat Hoffman, City Property Administrator • Karen Gagn6, Planner III • Members Absent: Jerry Taylor • Al Flack, Jr. • I. Call to Order and Introductions Chairman Filer called the meeting to order at 3:05 p.m. and asked Board members to introduce themselves. 11. Approval of Minutes Mr. Filer introduced a motion to approve the minutes from the January 11, 2007 meeting; Mr. Welbum seconded. The minutes were approved unanimously. III. Update on Progress and Financial Structure Chairperson Filer introduced Mr. Dave Clark and requested he explain the proposed financial changes. Mr. Clark noted he'd worked closely with Public Works, Finance and Community Development staff to compile the revised increment and project cost statistics outlined in the attached development status report. Mr. Clark introduced the City staff who helped research information: Davis Powell, City Engineer, Russell Schreiber, Public Works Director, and Pat Hoffman, City Property Manager. Mr. Clark highlighted various project line items — noting the only real change in projects outlined in the original TIF #2 Plan included the widening of Lawrence Road from Gregory to Kohl's property rather than a smaller section limited to Quail Creek plaza. it was logical to develop the full center -turn lane along Lawrence. Mr. Clark TAX INCREMENT FINANCING ZONE #2 January 5. 2009 Page 1 referred members to the Project Plan which conservatively estimated (Table 3, pg 37) a first year increment of $34,000 in 2007 which actually has worked out to be $98,358. When staff developed the Plan, caution was exercised since only seven known projects had building permits issued or were under construction. Currently, the speed and level of development occurring in the Zone is well into Phase IV and in some ways beyond what was accounted with the location of Jack -in -the -Box and Marriott Courtyard at Lawrence & Tarry Streets. Mr. Clark noted the TIF #2 fund will pay back the borrowed 4B funds as initially outlined in the Financial Plan. He noted changes to the identified project costs, explaining there were two sources for engineered project costs — City of Wichita Falls and Quail Creek project engineers. The actual project costs are significantly higher than the projected costs noted in the Plan. Mr. Clark announced the true project costs being $6.28 million. The biggest change in the identified projects related to cost increases with widening Lawrence Road. Mr. Clark provided background information regarding the bridge from the City transfer station to Maplewood (formerly Trade) to provide an alternate route for transport trucks which brings them to a designated signal light in order to make a left turn onto Lawrence Road. He summed up the project items noting 4B Fund provided $2.5 million upfront, and the roadway was built to Arthur Street but not open to the public, drainage channel work is nearing completion. Mr. Clark explained since the last Board meeting in January 2007, they anticipated building a bridge at Wenonah to connect the Wichita Square property and provide necessary access to the substation - as a by- product the bridge would improve overall accessibility between Wichita Square and Quail Creek plazas. To move forward with the bridge project, the City of Wichita Falls required purchasing 500ftz of land from Wichita Square plaza. The developer refused to work with the City and filed a Freedom of Information request for copies of all documentation relating to development in this area. The owner of Wichita Square purchased approximately $14,000 in records and copies. As a result the proposed bridge connection between the two plazas will not be constructed. A bridge will be constructed but only for required access to the substation. Staff referred members to the revised projections with the meeting packet. Looking ahead to future project costs, TIF #2 funds may be required for: 1) Maplewood - final phase of Maplewood from Lawrence west of McNiel along with a consideration for whether it should be a 2 lane divided or landscaped median roadway. Staff has received numerous calls over the past year from developers with property situated behind Lawrence Road Walmart and east of McNiel inquiring about development opportunities. Mr. Clark stated the parcels are currently landlocked but in order to move forward the feasibility of Maplewood would require the developers to donate land for the roadway. 2) Wenonah - development of Wenonah is questionable at this time because the majority of roadway would be constructed at City expense (behind Academy, Tesco Park and Lowe's). The key property for the Wenonah project to work is east of Lowe's along Kell Blvd. which remains undeveloped. A portion of this land is necessary for Wenonah to develop as an alternate north -south street beginning at Kell and connecting to Maplewood. TAX INCREMENT FINANCING ZONE #2 January 5, 2009 Page 2 3) Realignment Rhea - Lawrence -Call Field — Still under consideration and much Q debate. Staff noted from their experience with other City projects, if the right -of- way is available it makes sense to proceed with acquisition because it becomes an even more costly project in future years. At this time, cost of acquisition is prohibitive. Chairman Filer asked if the Rhea Road plaza remains undeveloped due to roadway issues. Ms. Hoffman responded the property was sold from the previous company that planned to redevelop the site — the new developer is asking for significant funds from the City in order to acquire the necessary right -of -way. Mr. Powell referred TIF Board members to tentative engineering drawings of the intersection realignment; Mr. Schreiber explained one set of lights would be removed at Rhea/Call Field and two comer lots would be created with greater development potential. Councilor Smith inquired if staff would pursue the realignment opportunity? Mr. Clark responded City Council would have to make that determination. However, the realignment option was previously discussed with the City Manager and his preliminary response was it may be a candidate for consideration as a 4A project. Mr. Chandler inquired, if the project goes back to Council for their consideration is there a possibility for a trade -off by keeping the newly created comer lots and re- selling at a future date to recover acquisition and roadlutility realignment costs. Chairman Filer commented both comer lots should be sufficient size to market and develop. Mr. Schreiber stated each lot would be almost one acre but acquiring the property prior to restoration would be less costly. Chairman Filer inquired about { asbestos abatement. Ms. Hoffman explained the building is already abated. Mr. Powell informed Board members the two busiest and congested intersections in the City would be impacted by the realignment and the timing of intersections along Kemp - Midwestem Pkwy would be improved. Mr. Clark requested Public Works update Board members with project timing. Mr. Powell explained the current Maplewood phase is moving ahead of schedule and is expected to be completed by March 30, 2009. The detention pond slated for Tesco Park will be developed on the north end with an outer sidewalk/path to provide neighborhood residents a passive recreation area. The south side of the park will be drainage channel/overflow area. IV. Consider Action to Amend the Plan After receiving an update regarding projects within TIF Zone #2, Mr. Clark recommended amending the original Project Plan to include the revised project information. Staff explained the amendment process will involve a public hearing and adoption of an ordinance by City Council. At this point, depending on information from the State Comptroller's office the amendments may require endorsement from the Wichita County Commissioners or simply a courtesy copy of the information. Mr. Clark asked Board members if they had any other projects for consideration. Members and staff briefly discussed options for including Avenue V in the Plan amendment. Board members inquired about floodplain status on the Berry property TAX INCREMENT FINANCING ZONE k2 January 5, 2009 page 3 (north of Kohl's). Mr. Powell stated the Berry property was built up with fill from the detention pond and its elevation is no longer in the floodplain. Members questioned if the City considered burying the utility lines along Lawrence Road. At one time staff considered underground utility lines for the area but it was cost prohibitive. Ms. Hoffman commented with the additional land necessary for the roadway widening (center tum -lane) landscaping will be replaced with Jack -in- the -Box but a shame the shrubs were removed for sidewalk along Circuit City's frontage. Discussion ensued among Board members and Ms. Bishop inquired how the difference between estimated and actual project costs would be addressed. Mr. Clark responded other City funds (storm water drainage fund, other City bond funds, etc.) would be utilized during the interim until the increment generated within the Zone can pay back borrowed funds. Chairman Filer questioned the difference in considering a 38ft or a 48ft roadway. Mr. Powell explained the consideration for Maplewood from Lawrence west to McNiel would be 1 lane each way plus a dedicated turn lane rather than have a 4 lane roadway (Maplewood between Kemp & Lawrence) dead end into a 4 lane (McNiel). Mr. Clark explained the Plan outlines Maplewood extending to McNiel via the short segment of Regent North. Board members discussed the proposed amendments agreed it was prudent to update the original Plan with accurate figures reflecting current project costs. Mr. Chandler introduced a motion to recommend the TIF Zone #2 Project and Financial Plan be amended to include the revised infrastructure project costs. Chairman Filer seconded the motion. Motion passed unanimously. Mr. Clark indicated an agenda item will be presented at a public hearing with City Council in mid - February and to the County Commissioners requesting the TIF #2 Plan be amended to include the revised project costs. V. Other Business Mr. Clark provided an update regarding the completion of TIF Zone #1 and preliminary statistics relating to the success of the program. Ms. Bishop inquired about the potential for TIF #3 and TIF #4. Staff responded they are being discussed - TIF #3 focusing on Fastside revitalization and TIF #4 a new downtown district. Chairman Filer asked if the School District would be participating. Mr. Clark stated the WFISD would never be part of future TIF districts due in part to their financing mechanism. Mr. Chandler questioned if the City couldn't participate in the Rhea Road realignment project due to lack of funds. Mr. Clark agreed with Mr. Chandler's statement but noted its up to City Council whether staff can break through with other funding sources for acquisition and eventual roadway construction. Ms. Hoffman added the existing building has an odd arrangement on the lot and the current developer doesn't intend to move the building, this adds cost to the City's plans for the roadway realignment. Mr. Clark thanked TIF Zone #2 Board members for their input and added City Council will conduct their annual strategic planning session January 21"t/22nd. Staff will TAX INCREMENT FINANCING ZONE #2 January 5, 2009 Page 4 present the revised TIF Zone #2 project costs and the potential for consideration of 4A , funds as a discussion item. Councilor Smith commented he believed the Rhea Road realignment project would also be discussed. Mr. Powell noted the realignment timing is key with phasing of the current infrastructure projects — it would be possible to add a change order for inclusion of the Rhea Road project while still under contract with the Maplewood component. 0 13 VI. Adjournment Mr. Chandler motioned to adjourn. Ms. Bishop seconded the motion and the vote was unanimous. The meeting adjourned at 3:56 p.m. Staff invited Board members to meet on -site at the TIF #2 Zone to view progress on the detention pond, drainage channelization and Maplewood extension. Ben Filer, Chairman Date TAX INCREMENT FINANCING ZONE #2 January 5, 2009 Page 5