CCP 04-24-2012 - Laserfiche WebLink

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Alternative Development Scenarios: At the last meeting, two different development scenarios were presented for discussion. The scenarios included a higher-density concept built out sooner and a lower-density version built out later. The biggest difference between the two concepts is the amount of housing that would be developed. Both scenarios take into consideration The View project (124 units) already under construction. Similarly, both scenarios take into consideration the APi and DSI buildings (171,000 SF), which translates into 388,000 to 419,000 SF of additional development. It is important remember a critical piece of the analysis; namely neither scenario assumes any inflation in property values over the life of the district. Chair Zisla stated that fact that there is a deadline of 2025, and that cannot be ignored. Director Fernelius reported that Ryan anticipates commercial development will pick up, and that currently positive absorption in office space is occurring. It was reported that a demographer reported that New Brighton can support 800-900 additional units of housing. Commissioner Potter thanked staff, noting the scenarios were wonderfully done. Commissioner Smith asked if there are still interested parties. Director Fernelius reported that Stuart Co. has options for the site to the east, in 2013 they should have a better idea of their needs, this will likely be dependant on the leasing of their current building. Colliers and Ryan Co. continue to market the sites, more aggressively than the City would be able to. Mr. Ruff stated that once the town-home market rebounds, this site will likely be desirable due to proximity/location. Cash Balance, Fund Balances and Debt Service Implications: The commissioners reviewed the Fund Balance Analysis spreadsheet. Director Fernelius noted that the City has Fund 460 to use in the event there is a deficit after bond payments. Mr. Ruff commented that the City is fortunate to have Fund 460, to use as a revolving loan fund. Chair Zisla asked what happens as districts decertify. Mr. Ruff reported that taxes go back to the City, County and School District, and any cash balances would be used to write down debt. Director Fernelius reported that it is typical for cities to subsidize development. Chair Zisla commented that years ago he heard a consultant talk about a large pool of money that will be available, and questioned what happens to the cash flow from prior projects. Director Fernelius responded that more districts will begin to decertify in the next few years.. As those districts decertify, the captured tax base will be added to the City's total tax base — meaning that theoretically this could cause taxes to decrease if the levy remains constant. In order to capture the new tax base, the City, County and School District would need increase their tax levies. Chair Zisla asked if there were any comments or questions. Director Fernelius stated that he is looking for feedback; are the analysis' adequate? The commission agreed that they were satisfied with the scenarios presented. Director Fernelius thanked Ms. Vogt and Mr. Ruff for the materials presented. NW Refinery Cleanup Director Fernelius reported that Ashland Oil and their contractor completed the remediation work on the Northwest Refinery last month. The site has now been cleaned up to an industrial standard. It was reported that there is additional contamination along the butcher spur rail line. The City is planning to review future expenses that may be incurred to cleanup the remaining contamination on the Butcher's Spur and former Suburban Propane parcel. Other Topics Nomination of EDC Chair for 2012