CCP 02-28-2012 - Laserfiche WebLink

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Director Fernelius discussed two scenarios; the first looking at higher density and built more quickly, and the second being less dense and developing later. Variables such as parking options were reviewed; noting that structured parking is expensive and typically not paid for by the tenants. Mr. Ruff noted that the density of the housing will be a determining factor in variables. Commissioner Potter questioned why the particular two scenarios were chosen. Director Fernelius reported that discussions with Ryan Co. led to the two scenarios. Commissioner Snell questioned the reason the senior residential building has a substantial difference in value than the rental apartment building. Mr. Ruff explained that the assessed value of rental property is lower than that of owner occupied properties. Director Fernelius reported that an additional variable is the projected market value of the project. Chairperson Zisla asked why there was a difference in the base market value between concept plan 1 and 2. Mr. Ruff noted that the base market value changes if the City owns the property. Zisla questioned Block B in particular, noting on Scenario 1 the base market value is $4,300,000, and in Scenario 2 the base market value is $2,400,000. Mr. Ruff explained that a new TIF district was created to capture new increment, and we have also captured the base value through a hazardous substance sub- district. Mr. Ruff suggested Council may have to decide whether they want to do a trade-off in the event they get proposals for smaller buildings than anticipated. Similarly, that may be the case with residential development as well. Mr. Ruff noted that for the purpose of projections land sale revenues were not included in either of the scenarios. Mr. Ruff noted that we have less construction than anticipated,but did project that the city will have adequate resources to pay it's obligations. Director Fernelius reported that as of November 2011, $70,000,000+has been spent in the New Brighton Exchange, noting funding has come from several pools of funds. Mr. Ruff stated that districts 9, 20 and 26 are producing more increment than their existing obligations, noting it is not uncommon to use increment from other districts to support projects. Chairperson Zisla questioned how the EDC should proceed. City Manager Dean Lotter suggested the following goals: • Acquaint the EDC with the financial planning. • Come back with a possible recommendation to council after discussion. • Look at assumptions and provide feedback to staff. City Manager Lotter stated that he would like the council to have a recommendation in March. Director Fernelius stated that there is more information to review regarding debt, and plans to provide that for the February meeting. Bruce Knight,New Brighton resident requested a concept plan be created showing the current situation to date. Director Fernelius clarified that was addressed by Mr. Ruff. Chairperson Zisla stated he too would like a sense of the variability. Commissioner Murlowski commented that the variables are innumerable. Director Fernelius reported that a break-even analysis was completed in the past,reporting he could provide that, however the realistic properties of that report are questionable. City Manager Lotter reported the facts are unknown,but that doesn't mean the City cannot create conceptual plans. Other Topics Nomination of EDC Chair for 2012 Motion by Commission Potter, seconded by Commissioner Smith to appoint Paul Zisla as chairperson for 2012. Approved 7-0 Adjournment Meeting adjourned at 9:15 am.