Loading...
HomeMy WebLinkAboutCity Council Committees - Economic Development Corporation - 09/22/1992 t ECONOMIC DEVELOPMENT CORPORATION September 22, 1992 A special meeting of the Kent Economic Development Corporation was called to order at 5:00 p.m. by Chairman White at Kent City Hall. PRESENT Boardmembers: White, Woods and Llewellyn Officers General Counsel Lubovich, Treasurer McCarthy, Donna Swaw, Deputy City Clerk Others Steve Burpee, Leslie Ganz, Christine Bogert, Verne DeWight, Raul Ramos APPROVAL OF MINUTES Minutes of the meetings of February 4, 1992 and September 8, 1992 were approved unanimously. INTERNATIONAL TRADE PROGRAM Lubovich explained that he has done research since the last Economic Development Corporation (EDC) meeting of September 8th regarding the EDC disbursing funds for the International Trade Fair. He noted that he did some fact-finding in regard to the Yakima issue and informed the EDC as to what they can and cannot do. He also explained that there are two ways the EDC can dis- burse the funds which are: (1) through the EDC, or (2) through the City of Kent by Council action. He noted that there are restrictions outlined in the statutes concerning the polders and duties of the EDC with disbursements limited to deve],,.obment, construction, and financing of industrial develoment facilities rather than programs. k Lubovich noted that another issue raised was a statutory provi- sion concerning the prohibition against unconstitutional gift of funds and informed the EDC that disbursements from this fund are not subject to that constitutional constraint. He noted, however, that his concerns in regard to the EDC disbursing funds are the limitations and restrictions which are innumerable. He stated that if using the other method of disbursement through the City, the statutes provide that net earnings of the EDC can be disbursed to the City for city use. He noted that there is a specific statutory authorization for the City to disburse funds for economic development programs but that the ban on unconstitu- tional gift of funds is in effect. He noted that the City does not have the same statutory restrictions as far as what the funds can be used for as the EDC does. Lubovich mentioned that the availability of the EDC financing has been restricted to public service projects such as pollution control and solid waste facil- ities so disbursement of funds for economic development programs are harder to justify and can be challenged in court. • 1 Lubovich provided a copy of his memo and recommendations along with a copy of a contract recently drafted between the City of Yakima and the Kittitas-Yakima Resource Conservation and Economic Development District regarding an Agricultural Trade Fair recently held in Yakima. He pointed out that Yakima paid $5,000 for the fair and that the first 1 1/2 pages of the contract list obligations due to the City so they did receive something in return for their investment. He noted that the City of Kent, to disburse/retain earnings of t -Council, would also have to receive some considera- tion. in Lubovich expressed that the best defendable scenario would be to transfer the net earnings to the City, allow the City to set up the conditions of disbursements through economic development programs and put it into contract form between the City of Kent and the Chamber of Commerce (Chamber) . Upon Llewellyn's question, Lubovich explained that because there has been more interest shown in doing economic development pro- grams, a statute was passed in 1985 or 1987 making specific authorization for cities to do these programs if deemed for pub- lic purpose so that they could go beyond just the police powers (police, fire, utilities) -they are authorized to provide. White expressed that he would like a contract worked out between the City and the Chamber prior to the transfer of money. Lubovich explained that there are a number of ways to accomplish this such as, approval with condition upon satisfactory contract negotia- tions with the Council President, authorizing it contingent upon contract coming back for approval, or that matching funds go with it and the money is actually used for that purpose. Upon White's question, Lubovich stated that matching funds should be spelled out in the resolution but they have to be negotiated first. Burpee noted that puftfng the funds into the City's control may provide a better scenario in that it would accomplish a public/ private partnership between the City and the Chamber, who represent the,-business community, and possibly generate more involvement. Burpee explained for Llewellyn that profits would continue to fund ongoing international trade programs because globally the market place will be around for a long time. Lubovich encouraged the Chamber to assist the City with certain proposals and criteria for the contract, if this is chosen. DeWight noted that the Chamber's intent has been to have representatives from the public or private sector involved in the financial committee regarding the expenditure of funds. Lubovich distributed two sample resolutions for consideration by the EDC and Burpee noted that on page 2 , section 1, last line of the resolution transferring funds to the City, it should read "international trade promotions program" instead of "inter- national trade fair" because there are many elements to it. i 2 r; Lubovich clarified for Woods that the EDC can authorize a transfer of funds, the net earnings or a specific amount, to the City and the City can, by Council action, disburse funds entered into agreement with the Chamber. He also clarified that funds not disbursed would go back into the EDC account. Lubovich noted some things that could be included in a contract such as, the City's conditions on how funds will be utilized and what it wants in return, disbursement only upon certification that matching funds are established, that a trade program be established and conducted by a certain date, or whatever time or monetary limita- tions they want to include in the contract. He noted for White that if done this way, the EDC would not be challenged but rather the City and they would have to defend the disbursement of funds as a possible misuse of funds or the unconstitutional gift issue. Lubovich noted that another factor could be included such as, subject to review and approval of the contract, or subject to the EDC President's approval. Upon Llewellyn's question, McCarthy explained that if the full $50, 000 is approved, it will deplete the balance of the fund by $27, 000 from $77, 000 because the annual income is about $20,000 with interest from loans that are out already. 4V lqaa` Si WOODS MOVED to adopt the resolution transferring $50, 000 from the EDC fund to the City of Kent, with a change in wording on Page 2, Section 1, last line to read as follows: "International Trade Promotions Program" , instead of "Inter- national Trade Fair", and subject to review and approval of the contract by EDC President White. Llewellyn seconded and the motion carried unanimously. White noted that the contract should be negotiated before it goes to the Operations Committee and then to the City Council. INFRASTRUCTURE UPDATE Raul Ramos noted that the numbers and all estimates for capital projects, as listed in the report, which were generated by the Public Works Department are very important and have been sub- mitted to the Finance Department for review. He noted that there are six phases to the project and emphasized that it isn't neces- sary to upgrade the system all at once. He stated that it was more economically feasible to use the two City-owned parking facilities at this time but also noted that there were different scenarios that could be used to generate additional parking structures such as a joint parking facility constructed in con- junction with the Regional Justice or the Performing Arts Centers. i 3 Ramos noted that the City recently adopted the Growth Management Policies which designated the downtown area as an Urban Center and requires the City to make efforts to cut the number of parking stalls, emphasize a commute trip reduction program, and emphasize more density to justify the transit. He explained that transit is at the heart of an acceptable Urban Center and is expected to provide structured parking facilities not on a project level basis but on an area basis so individual projects do not have to provide surface or horizontal parking and take up valuable land. He noted that the structured parking concepts and rationale are consistent with the Growth Management Act as well as the community's preference of being designated as an Urban Center. He stated that if the City is designated as an Urban Center, it will assist Metro to help create a transit center with such things as expanded bus service, In-city transit, and commuter rail. Ramos informed the EDC that he's in the process of finishing up the phasing and is working with McCarthy and the Public Works Department to complete the capital projects and costs part of it. He noted some incentives for an Urban Center should provide a streamline permit process for projects located within the down- town area, reduce or eliminate impact fees for projects with the Urban Center, and create a vibrant commercial and residential center. He explained that the incentives are important to facil- itate more public and private investments within the desired high • density area and need to be addressed. He noted that an Urban Center designation is a founding precept for the Growth Manage- ment Act and that all elements have to work together. Upon White's question, Ramos explained that the facilities part of the Infrastructure Report will be completed no later than December but the Utility Plan is complete. He noted that the regulatory end of the report remains to be done such as creating a Capital Funding Plan, integrate it into the CIP process, create legal mechanisms for providing additional incentives to the impact fee program to generate more private investments in the downtown area, as well as the sidewalk implementation aspects. He noted that basically the report is finished with just the implementa- tion portion to be completed. McCarthy noted for White that information is being gathered for the Operations Committee meeting on October 6th to look at the CIP, how these projects may fit in and see what can be done for the 1993 budget. Upon White's question, McCarthy explained that $75, 000 has been in the sidewalk budget for several years with none of the money being spent until two weeks ago when Council jointly decided to fund a project with Des Moines and felt that Ramos has a definite plan of where improvements can be made. 4 . . F White explained that he believes the downtown area should be revitalized but not to neglect the- rest of the City while this is being done. He stated that there is a serious problem with trees that need to be addressed because the wrong type of trees were planted, they haven't been cared for properly, just pruned because no one on staff was educated in this area. White reiterated that the EDC only approved and funded a downtown infrastructure study which is now complete and noted that if Ramos was to be retained as an consultant another funding source would have to be used. Upon Llewellyn's question, Woods explained that if this infrastructure plan becomes policy by a vote of the City Council, it becomes the obligation of the City staff to implement it because it is the number one priority for the City. The meeting was adjourned at 6: 00 p.m. SO,22�J,�O� Donna Swaw • Deputy City Clerk • 5