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HomeMy WebLinkAboutCity Council Committees - Economic and Community Development - 01/24/2011 (3) ECONOMIC & COMMUNITY DEVELOPMENT COMMITTEE MINUTES JANUARY 24, 2011 Committee Members Committee Chair Jamie Perry, Elizabeth Albertson, Deborah Ranniger. Chair Perry called the meeting to order at 5:00 p.m. 1. Approval of Minutes Councilmember Ranniger MOVED and Councilmember Albertson SECONDED a Motion to approve the December 13, 2010 Minutes. Motion PASSED 3-0. 2. Update on Traffic Impact Fees (TIFs) Implementation and Recommendations Economic and Community Development Director Ben Wolters stated that the first part of staff’s presentation analyzes fees and charges related to new development and includes a conceptual comparison with other cities as requested by the City Council, Kent Downtown Partnership and the Kent Chamber of Commerce. Wolters addressed issues raised with respect to Kent’s fee structure. Wolters explained how revenues collected from Kent’s fee base are used to make improvements primarily to the transportation infrastructure that connects Kent to the rest of the region. Wolters stated that Kent increased drainage fees in response to the threat Kent faces with the City’s declining levy system that needs maintenance and upgrading to new Federal Standards. Principal Planner, Matt Gilbert presented an analysis that addressed the issue of competitiveness, illustrating how cities differ in the way they assess fees to permits and collect money for the various services they provide. Gilbert addressed the misleading language in the TIF ordinance recommending amending the change of use language to state: “as long as the land use category where the use is located is not changing no TIF will be required”. Gilbert addressed the circumstances under which TIFs would apply. Gilbert stated that staff recommends adding language to the TIF ordinance clarifying that “TIF is not required when an Environmental Mitigation Agreement (EMA) is already in place”. Public Works Director Tim LaPorte stated that the City is faced with determining if existing projects were qualified by SEPA or by issuance of their building permit. He stated that the EMAs were created specifically for construction of the cross valley corridors . City Attorney Tom Brubaker stated once the TIFs were enacted, the City no longer required EMAs under SEPA for new development. For projects moving forward from today, there will be no EMAs assessed except for the 196th Street corridor east leg. Brubaker stated that the City is in the processing of clearing up historical properties that underwent SEPA review at the time those subdivisions were applied for. Gilbert stated that staff recommends increasing the 3-year grace period credit in vacant buildings to 5-years. Gilbert said that this recommendation applies only to empty commercial buildings. Wolters addressed the impacts of vacant buildings on marketplace competitiveness. Gilbert spoke about the annual fee increase escalator that the ordinance provides for. He stated that City Council may wish to review those fees annually along with the budget rather than allow automated fee increas es. Gilbert addressed the issue of exempting uses, stating that staff is recommending no direct action on exempting any specific use. Gilbert addressed the justification for allowing lower rates in the downtown area referencing the ordinances rate study. He cited RCWs 82.02 which states that TIFs must be used only to accommodate increased capacity in the transportation system. Andrea Keikkala, Executive Director, Chamber of Commerce, 524 W. Meeker, Suite 1, Kent, spoke in support of staff’s recommendation to add language to clarify what constitutes change of use and supports raising the threshold on vacant buildings from 3 to 5 years. ECDC Minutes January 24, 2011 Page 2 of 2 Keikkala recommended that vacant buildings be exempted from the TIF for an additional 3 years or until they are occupied to promote development and eliminate the blight of existing vacant buildings. She stated that she supports a recommendation to eliminate TIFs. Keikkala spoke in support of an amendment requiring Council action to raise the TIF and examine the financial liability of these fees on a yearly basis. Keikkala recommended that fee collection should be spread out over several years to ease start up costs for new businesses. Tom Sharp, PO Box 918, Maple Valley, spoke about the unintended consequences resulting from the adoption of the TIF Ordinance. He suggested that Council consider establishing a group of 7 people comprised of staff, the business and development community to evaluate the TIFs Ordinance and report back to the Committee within 90 days. Sam Pace, Association of Realtors, 29839 154th Ave SE, Kent stated that there is a perception that Kent is a high cost area relative to other jurisdictions related to TIF. The public perception is that Kent’s TIF is costing opportunities for new private sector jobs. Pace spoke in support of a C of C recommendation that the City prioritize their list of transportation capital improvement projects in a way that recognizes the economy we have including limited private sector access to both equity capital and debt financing. Greg Haffner, Curran Law Firm, 555 W Smith, Kent, spoke on behalf of the Kent Downtown Partnership (KDP). He voiced support of the Chamber of Commerce’s position. He stated that the City should reevaluate the projects generating the need for TIFs and eliminate some of those projects. Haffner recommended a broader based development tax and eliminating TIF. He voiced support for a 5 year grace period for vacant buildings. Council members Perry, Ranniger and Albertson supported staff’s recommendations for; Options A & B on Change of Use, for TIF vs. EMA, supported raising the validity period to five (5) years, supported suspending the fee rates increases via the escalator clause in lieu of requiring that Council review those fees annually as part of the budget and agreed that there should be no action taken with respect to daycares. The Committee Members concurred that a task force should be established to consider the city’s overall transportation funding and to review the 30 proposed projects with consideration towards reducing the number of those projects. Wolters addressed the feasibility of collecting TIF payments over the course of several years and spoke about the use of Local Improvement District (LID) fees. Wolters stated that a focus group needs to look at how the City funds transportation requirements and at mechanisms that would allow for the collection of those funds over time. Councilmember Perry requested that staff convey their recommendations on to the Public Works Committee at their next meeting through a memo. For Information Only 3. Economic Development Report Economic and Community Development Director Ben Wolters stated that a significant distributor proposes doubling their facility’s size from 250,000 sf. to 500,000 sf. Wolters stated that a Committee has reviewed and chosen 3 proposals for the City garage site. Staff will bring a recommendation to the ECDC upon completion of John Hodgson and Mayor Cooke’s review. For Information Only Adjournment Councilmember Perry Adjourned the Meeting at 6:40 p.m. ______________________________________________ Pamela Mottram, Economic & Community Development Committee Secretary