Chief
05-29-2008, 05:39 PM
C i t y C o u n c i l A g e n d a
MONDAY, JUNE 2, 2008
5. PUBLIC HEARING ON THE CITY’S PROPOSED USE OF THE LOCAL INFRASTRUCTURE FINANCING TOOL PROGRAM (LIFT) TO HELP FINANCE PUBLIC INFRASTRUCTURE RELATED TO REDEVELOPMENT IN DOWNTOWN VANCOUVER
(Staff Report 086-08 --- attached on grey paper.)
Summary:
In 2006, the Legislature created the Local Infrastructure Financing Tool program codified as RCW 39.102. This law allows local governments to use a portion of local tax revenues from within designated Revenue Development Areas (RDAs) to pay for infrastructure associated with projects developed within these RDAs. The law also provides for a matching amount of State funding up to a maximum of $1 million per year for 25 years. The State allocated $2.5 million per year for three legislatively approved LIFT projects (including the City of Vancouver Riverwest project) and $5.0 million for projects selected on a competitive basis in 2007 and 2008, with $2.5 million available each year.
The City of Vancouver is planning an approximate $38.6 million construction project designed to facilitate access to the former Boise site and encourage the site’s redevelopment. Contemplated public infrastructure improvements will include extending Esther and Grant streets under the Burlington Northern Santa Fe Railroad (BNSF) berm, constructing a new street to the north of the BNSF rail line that connects Sixth Street to Jefferson Street, constructing a street to the south of the BNSF rail line connecting Sixth Street to Seventh Street, related intersection improvements, and construction of a public trail and greenway along the Columbia River. All of the public improvements are included in the City’s capital facilities plan.
The City proposes to establish the Waterfront Revenue Development Area (RDA) and apply for up to $500,000 per year for 25 years in State funding through the LIFT Program. The proposed RDA incorporates all of the proposed public infrastructure and the land most likely to benefit from the public infrastructure as required by the LIFT Program. In addition, the proposed public infrastructure is expected to encourage private development that is consistent with the City’s comprehensive plan, increase the fair market value of real property, and increase employment within the RDA.
The RDA includes approximately 75 acres with approximately 63 acres zoned for mixed-use development, 11 acres zoned light industrial and 2 acres zoned heavy industrial. Staff estimates that approximately 30 businesses currently operate within the RDA with total employment within the RDA of approximately 350 jobs. No housing currently exists within the RDA.
The LIFT Program does not require a commitment of existing City revenues. The City will receive 25 percent of the increase in property tax revenues and all other City revenues except the City sales tax from the proposed development. Prior to issuing bonds, detailed financial projections will be presented to City Council and supplemental appropriations will be requested as required.
Action Requested:
Conduct a public hearing, as required by the LIFT statute and direct staff to prepare an ordinance for first reading on June 9, with second reading and public hearing on June 16, establishing the Revenue Development Area. (Eric Holmes, Director of Economic Development, 735-8872, and Paul Lewis, Economic Development Consultant, 696-8143)
MONDAY, JUNE 2, 2008
5. PUBLIC HEARING ON THE CITY’S PROPOSED USE OF THE LOCAL INFRASTRUCTURE FINANCING TOOL PROGRAM (LIFT) TO HELP FINANCE PUBLIC INFRASTRUCTURE RELATED TO REDEVELOPMENT IN DOWNTOWN VANCOUVER
(Staff Report 086-08 --- attached on grey paper.)
Summary:
In 2006, the Legislature created the Local Infrastructure Financing Tool program codified as RCW 39.102. This law allows local governments to use a portion of local tax revenues from within designated Revenue Development Areas (RDAs) to pay for infrastructure associated with projects developed within these RDAs. The law also provides for a matching amount of State funding up to a maximum of $1 million per year for 25 years. The State allocated $2.5 million per year for three legislatively approved LIFT projects (including the City of Vancouver Riverwest project) and $5.0 million for projects selected on a competitive basis in 2007 and 2008, with $2.5 million available each year.
The City of Vancouver is planning an approximate $38.6 million construction project designed to facilitate access to the former Boise site and encourage the site’s redevelopment. Contemplated public infrastructure improvements will include extending Esther and Grant streets under the Burlington Northern Santa Fe Railroad (BNSF) berm, constructing a new street to the north of the BNSF rail line that connects Sixth Street to Jefferson Street, constructing a street to the south of the BNSF rail line connecting Sixth Street to Seventh Street, related intersection improvements, and construction of a public trail and greenway along the Columbia River. All of the public improvements are included in the City’s capital facilities plan.
The City proposes to establish the Waterfront Revenue Development Area (RDA) and apply for up to $500,000 per year for 25 years in State funding through the LIFT Program. The proposed RDA incorporates all of the proposed public infrastructure and the land most likely to benefit from the public infrastructure as required by the LIFT Program. In addition, the proposed public infrastructure is expected to encourage private development that is consistent with the City’s comprehensive plan, increase the fair market value of real property, and increase employment within the RDA.
The RDA includes approximately 75 acres with approximately 63 acres zoned for mixed-use development, 11 acres zoned light industrial and 2 acres zoned heavy industrial. Staff estimates that approximately 30 businesses currently operate within the RDA with total employment within the RDA of approximately 350 jobs. No housing currently exists within the RDA.
The LIFT Program does not require a commitment of existing City revenues. The City will receive 25 percent of the increase in property tax revenues and all other City revenues except the City sales tax from the proposed development. Prior to issuing bonds, detailed financial projections will be presented to City Council and supplemental appropriations will be requested as required.
Action Requested:
Conduct a public hearing, as required by the LIFT statute and direct staff to prepare an ordinance for first reading on June 9, with second reading and public hearing on June 16, establishing the Revenue Development Area. (Eric Holmes, Director of Economic Development, 735-8872, and Paul Lewis, Economic Development Consultant, 696-8143)