Loading...
HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Minutes - 10/19/2017Kent City Council Special Workshop October 19, 2017 Minutes Kent, Washington Pending Approval Date: October 19, 2017 Time: 5 p.m. Place: Council Chambers East/West Attending: Bill Boyce, Council President Tina Budell, Councilmember Jim Berrios, Councilmember Brenda Fincher, Councilmember Dennis Higgins, Councilmember Dana Ralph, Councilmember Les Thomas, Councilmember Council President Boyce opened the meeting at 5:00 p.m. Agenda: YMCA / Morrill Meadows Park Project Update Julie Parascondola, Parks, Recreation, and Community Services Director, gave a presentation on the Morrill Meadows and YMCA Project. An Overview/History was reviewed that included entering into a MOU with YMCA in October, 2015, joint design and construction planning, periodic updates to the Council, Morrill Meadows property surplus consideration approved on June 6, 2017, SEPA determination of Non-Significance on August 18, 2017, and property surplus approved by the Council on October 17, 2017. Julie detailed the Restrictive Covenants: Recreation and Conservation Office and King County 1989 Open Space Bonds. Conversion Considerations are currently under review. Details of the park design were presented that include: a new dog park, new multi- use sports court, new amphitheater, new open plan space, front porch/plan area, parking lot, frontage improvements, grading, drainage, and landscaping. Phase II will include play equipment and trails. Hope Gibson, Parks Planning and Development Manager, provided clarification on issues raised by the Council regarding the parking lot and dog park. Julie provided information regarding the YMCA’s proposed 50,000 square foot facility and their plan to obtain LEED Certification. Julie reviewed the construction challenges with regards to leveraging partnerships and the recommended construction approach that includes utilizing one contractor to complete improvements for the park, facility and required frontage Page 1 of 3 Kent City Council Special Workshop October 19, 2017 Minutes Kent, Washington Pending Approval improvements, and utilizing a lease/leaseback structure with the YMCA assuming control and responsibility as the exclusive contractor. Julie indicated the lease/leaseback structure will require a Ground Lease, Project Lease, Purchase and Sale Agreement of YMCA facility footprint, Project Development Agreement, and a Long Term Operating Agreement. The total project budget is $33,680,000. The YMCA’s responsibility is $23,680,000 and the City would be responsible for $10m. Julie detailed the funding sources, pending final budget approval. Julie provided details on the New Market Tax Credits (NMTC) that help stimulate investment and economic growth and attracts capital to lower income communities by private investors with a federal tax credit for investments. If the YMCA is successful in attracting NMTC investment for the total cost of the project, it will bring in funding that will proportionately reduce the amount that both partners need to contribute to the public-private partnership. Julie detailed the next steps that include: • City Council actions to approve the project budget by year end 2017 • Approve the lease/leaseback agreements by year end 2017 • Approve long-term operating agreement by first quarter 2018 • Approve conversion property purchases by the first quarter of 2018 Staff will need to work through: • Project management • Prepare five development and lease/leaseback agreements • Continue joint design and construction • Finalize conversion properties. The project timeline includes: • Publish request for project bids by November 10 & 17 • Development and Lease/Leaseback Agreements to Operations on December 5, and then onto the City Council on December 12. • Finalize land purchase for conversion in January/February 2018 • New Market Tax Credit allocation, if any, included in project budget by March 2018 • Break ground and begin construction in May, 2018 Julie and Hope responded to questions from the council and provided further clarification regarding the project construction. Page 2 of 3 Kent City Council Special Workshop October 19, 2017 Minutes Kent, Washington Pending Approval The Council requested additional information regarding scholarships and consideration to school swim teams. Tom Brubaker, City Attorney, provided clarification regarding challenges and what the law allows, including: • Creating a lot for the YMCA Building • Selling the lot to the YMCA • The remainder of the site will be leased by the City to the YMCA for a 20-year term • The YMCA will construct the entire project • When the YMCA completes the improvements, they will lease it back to the City. • An early buy-out option will be available The YMCA will be solely responsible for cost overruns, in addition to taking on all liability. Derek Matheson, Chief Administrative Officer, provided clarification that this workshop is intended to advise the council on the process and obtain confirmation that they are comfortable with that process. Councilmember Budell requested an extensive communications plan be utilized during the entire construction process. The meeting concluded at 6:09 p.m. Kimberley A. Komoto City Clerk October 17, 2017 Page 3 of 3