city council study session - civicweb

City Council Study SessionDecember 12, 2018

LOCAL HISTORIC DISTRICTS AND PROPERTY VALUE BROCHURE

Report 2

International Festival of HollandInternational Festival Advisory Board

INTERNATIONAL FESTIVAL OF HOLLANDAUGUST 17, 2019

International Festival of Holland

I. International Festival of Holland Vision

Cultural Appreciation

Educational/Entertainment for all ages

Rededication of the Queretaro Fountain – Invitation to the newly elected, Presidente Municipal of Queretaro, Luis Bernardo Nava Guerrero

Community Stakeholder Participation


Key Elements: International Festival of Holland

Performers/Entertainers

Cuisine

Marketing/Public Relations

Fundraising

Logistics

Festival Timeline

Fundraising Call to Action Aug/Sep 2018

Potential Vendors/Funding Sources Jun 2018 – Apr 2019

Call for Entertainment Jul - Sep 2018

Call for Artists - Competition Nov 2018 - Jan 2019

Recommendations to Festival Board Oct 2018 –Jan 2019

Festival Reveal & Merchandising Tool Kit Feb 2019, tentative

IRC Commission Updates On-going

Promotion and Advertising Fall 2018 Full - 2019

Program Development Throughout

International Festival of HollandInternational Festival Board Affiliation

Sally Laukitis Holland Area Convention & Visitors Bureau

Tess Stanek Yanfeng Automotive Interiors

Renese Rivera Holland Area Arts Council

Mary Sundstrom Holland Area Arts Council

Sara DeVries Herrick District Library

Patty Compagner Flagstar Bank

Kara de Alvare Principal Shopping District

Niki Kloosterman PSD/DDA

Ricki Levine Holland Museum


International Festival Board Affiliation

Kara Rooks Tulip Time

Jodi Owczarski West Coast Chamber of Commerce

Sara Russell The Bridge – Western Seminary

Marty & Margie Amon Green Mark Equipment, Friends of Queretaro

Kim Enochs LG Chem

Priya Gurumurthy Yanfeng Automotive Interiors

Kim Sunyoung Arconic

Lupita Reyes Lara Counseling Services


SAVE THE DATE: SATURDAY, AUGUST 17, 2019Civic Center Place

MERS HEALTH CARE SAVINGS PROGRAM ADOPTION OF NEW HIRES

Report 4

HOUSING DEVELOPMENT HOUSING

Report 5

INCENTIVES & ABATEMENT DISCUSSION

CITY COUNCIL STUDY SESSIONDECEMBER 12, 2018

Consensus Reached

• Do you want an incentives strategy? Yes

• Do you support developing a plan for how to employ incentives? Yes

• Should a financial consultant be used to review proformas or should staff? A financial consultant.

• Is housing a priority to Council? Yes

Consensus Not Yet Reached

• Do you support limited incentives?

• Do you support full incentives?

• Do you support layering incentives?

• Is affordable housing a priority to Council?

• Is Council’s role in affordable housing a priority?

DRAFT HOUSING DEVELOPMENT SUPPORT POLICY

Inviting, Thriving, Resilient

Vision The City of Holland is a thriving community with a diverse population and a dynamic, growing economy.

The City fosters collaborative relationships with corporate, nonprofit, philanthropic, and municipal partners to ensure long-lasting prosperity for all members of the community.

In this effort, the City prioritizes the use of local economic and community development tools to ensure strategic investments in the City produce equitable results while pursuing long-term economic sustainability.

Principles for Neighborhood InvestmentVibrant & Diverse:

• Prioritize the creation of dynamic, mixed-income neighborhoods.

• Encourage a broad range of housing prices, sizes, types and densities across the City.

Meaningful Connections:

• Catalyze local place-making.

• Support balanced neighborhoods with access to jobs, housing, education and recreation.

• Provide ample opportunity for people to access the natural environment with ease.

• Encourage building types that demonstrate quality, durable, and adaptable construction methods while respecting the historic tradition of the neighborhood and providing for new iterations on familiar architectural themes.

Critical Goals • Reserve incentives only for those firms/developments that will advance

achievement of the Principles for Neighborhood Investment.

• Leverage private investment to enhance public infrastructure, opportunity for growth and improvements in quality of life for residents, workers and students in the City of Holland.

• Support housing at all price points (starter, mid-market & luxury)

• Seek an appropriate balance of housing types and sizes for each neighborhood. Structure incentive offerings according to defined gaps in current market offerings, stated community needs, and ability to leverage funding from other sources. Housing incentives are offered only where a clear need aligns with neighborhood preferences and where the market has failed to provide the desired balance of housing without incentives.

• Support the growth and preservation of vibrant, holistic neighborhoods (live, work, play & learn)

Targeted Strategies • Develop clear process and policy for application and financial review

of all incentive requests.

• Provide City Council with consistent rubric to measure total cost to the City, quality of proposed development, and measurable public benefits intended to result from local incentives.

• Clearly articulate why an incentive is necessary and what public value that incentive is expected to produce.

• Establish S.M.A.R.T evaluative tools (Specific, Measurable, Attainable, Relevant and Time-based) to track return on investment.

• Establish process to define neighborhood-specific goals and objectives for long term growth and community development.

DRAFT GUIDELINES Neighborhood Housing & Development Support Program

Purpose Encourage and promote investment and redevelopment along strategic corridors and within targeted neighborhoods.

Development support incentives used to leverage private investment to:

• Create and/or strengthen economically resilient and mixed-income neighborhoods;

• Provide access to improved housing choice across all price points, types, and sizes;

• Improve mobility options for people of all abilities;• Increase availability of meaningful work and livable wages;• Improve access to neighborhood and regional goods and services• Support high-quality, durable design and construction techniques• Enhance or replace public infrastructure

Incentive Program Tool Box The City of Holland is willing to utilize the following local tools and programs to support investments:

• Act 381 Brownfield Tax Increment Financing• Neighborhood Enterprise Zone (NEZ)• Payment in Lieu of Taxes (PILOT) • Community Development Block Grant (CDBG) • Property Tax Abatements

Act 381 Brownfield Redevelopment Brownfield Tax Increment Financing is a tool which allows a developer to be reimbursed for eligible expenses pertaining to the following:

• Demolition & lead/asbestos abatement• Environmental Clean up of contaminated sites• Replacement, repair or installation of public infrastructure –

including parking structures• Site Preparation Activities• Stormwater Management Activities

Reimbursement occurs only as new taxable value is created on the subject property. Up to 24 mills of State Taxes can also be utilized.

Act 381 Brownfield Redevelopment City Council may provide up to:

• 80% of the available tax increment on a per annum basis when reviewing brownfield projects for Act 381 reimbursement related to eligible public infrastructure expenses.

• 50% of available increment for all other eligible activities.

City Council may consider a contribution of more than 50% of available tax increment for reimbursement of non-infrastructure related eligible activities if:

• The proposal includes a provision to maintain a minimum of 10% of all residential units as affordable for residents earning less than 80% of area median income (AMI) for a period not less than the period of tax increment reimbursement.

• The final amount of tax increment revenue to be reimbursed to the applicant shall be determined by staff recommendation and the applicant’s scores in the Financial Incentives Rubric.

• City reimbursement shall also be dependent upon satisfactory review of the proposed project by City staff and a recommendation that the project satisfies the Principles for Neighborhood Investment

Neighborhood Enterprise Zones (NEZ)

Neighborhood Enterprise Zones allow for the abatement of 50% of the taxes due each year for up to 12 years. The City Council may elect to reduce the total number of years that an abatement can occur.

Eligible properties include mixed-use projects which include both commercial and residential uses of land OR single-family and two-family residential projects wherein the owner of the property claims that property as his/her principal residence.

Neighborhood Enterprise Zones (NEZ)

Two-family dwellings.

• The City of Holland will provide up to five (5) years of tax abatement under the minimum NEZ standards for all two-family developments.

• The City may allow for up to the full 12-year abatementwhere the applicant proposes to maintain affordability for individuals earning less than 80% AMI on one of the two dwellings.

Neighborhood Enterprise Zones (NEZ)Mixed-Use Projects

• The City of Holland may provide up to five (5) years of tax abatement under the minimum NEZ standards as determined to be in keeping with the Principles for Neighborhood Investment.

• The City may allow for up to the full 12-year abatement where the applicant proposes to maintain affordability for individuals earning less than 80% AMI on a minimum of 15% of the total number of units at all times.

• A lesser percentage of units maintained for households earning 80% of AMI or below shall result in a shorter period of tax abatement.

Payment in Lieu of Taxes (PILOT)• Support based on recommendations of the Planning Commission for

urban design standards , the Downtown Development Authority (when located in the Downtown), and staff review and recommendation of the PILOT request.

• City Manager review shall include a complete financial analysis of the applicant’s proposed project including the final proforma as submitted to MSHDA. City Manager may hire an independent third party to conduct a financial review of the proposed project and staff may require that the applicant provide up to a $5,000 escrow to fund any activities associated with the independent financial review of their proposal. Any funds not expended shall be returned to the developer within10 days of the City Council decision to support or deny the applicant’s request.

• Priority given to projects which provide a mix of market rate and affordable units.

• The City Council shall provide a statement of findings related to the Principles for Neighborhood Investment and the Financial Incentives Rubric score when making final decisions regarding the approval or denial of a PILOT request.

Only used to support MSHDA funding

Cannot be used without State funding

Community Development Block Grants (CDBG)

Eligible activities and developments shall meet 1 of 3 national objectives:

• Benefit low to moderate income people

• Aid in the prevention of slums and/or blight

• Provide for an urgent need

Examples: housing acquisition and rehabilitation, public services and public facilities that benefit low to moderate income people.

Entitlement Community

Allocated aprox. $300,000/yr from HUD

Property Tax Abatements• Commercial Redevelopment Act (PA 210)• Commercial Rehabilitation Act (PA 255)• Obsolete Property Rehabilitation Act (PA 146)

Each of these incentive programs:

• Can be utilized in an effort to temporarily reduce the property taxes due.

• Can be limited in duration between1 year and 12 years depending upon the program and the Council’s desire to fully or partially support a project.

• Comes with slightly different eligibility criteria.

Layering Incentives • The City of Holland may consider the layering of multiple tax

incentives to support high quality, neighborhood-oriented redevelopment.

• However, the layering of multiple incentives should demand the highest standard of quality, durability and community benefit.

• The City Council shall base any decision regarding the layering of multiple incentives upon staff review and recommendation of support for the applicant’s scoring in the Financial Incentives Rubric.

Incentive Program Tool Box The City of Holland is willing to utilize the following local tools and programs to support investments:

• Act 381 Brownfield Tax Increment Financing• Neighborhood Enterprise Zone (NEZ)• Payment in Lieu of Taxes (PILOT) • Community Development Block Grant (CDBG) • Property Tax Abatements

Coming Soon… Case study exercise on how to use each of these tools for different projects and how to layer….

FINANCIAL INCENTIVE RUBRICDRAFT

Housing Developments 0: No or N/A 1: OK 2: Excellent

1. The project will provide a type of housing that is currently under supplied in the City or the proposed neighborhood (senior, workforce, efficiency, etc.).

2. The development team provided enough evidence to demonstrate a clear need for local financial incentives.*

3. The development team has requested only the minimum amount of financial support necessary to ensure long term financial viability of the project.*

• Targeted metrics - Debt coverage ratio should be between 1.2 and 1.25. Annual Operating expenses should not exceed 30% of NOI. Developer IRR should be between 5% and 10%.

*Required

Scale

• Less than 4 points =Incentives not granted

• 5 - 7 points = Minimal incentives may be granted

• 8-10 points = Incentives granted

Housing Developments 4. The development team has secured a property management

firm with demonstrated experience managing the proposed type of project.

5. The development team has secured a property management firm with demonstrated experience managing the proposed type of project.

6. The proposed project leverages state or federal resources in addition to the local request for support.

7. The proposed project aligns with the desired mix of affordable/market rate housing in the proposed neighborhood.

*Required

0: No or N/A 1: OK 2: Excellent

Scale




Housing Developments

*Required

8. The development team has committed to maintaining at least 10% of the proposed housing units as affordable for at least 10 years.

9. The affordability requirement will be administered and monitored per the City’s requirements?

10.The degree of affordability the development team has committed to as a percentage of area median income meets the City of Holland’s requirements in that location.


Scale




Housing Developments

*Required

11.The proposed project satisfies at least one (1) goal and/or action step articulated in the neighborhood plan or City Master Plan.*

12.The Planning Commission has recommended that the proposed project is compatible with the requirements of the City Master Plan and the Zoning Ordinance.

13. If located along a planned retail corridor, the ground floor of the project is designed to accommodate retail use OR allow for future conversion of that space to a retail use with relatively little additional investment needed.


Scale




Mixed-Use, Commercial & Industrial Developments

*Required

1. The proposed project is located within walking distance to a transit station (1/3 mile or less).

2. The project is designed to allow for a positive pedestrian experience for residents or employees to walk from the building to the nearest transit station?

1. The project provides activation of ground floor and street level space in a way that benefits not only the residents of the proposed building but serves a broader neighborhood need. (i.e. ground floor retail, community space, courtyards or gardens visible from the street, etc.).


Scale




Mixed-Use, Commercial & Industrial Developments

4. If the project is located along a primary retail corridor, the project furthers the activation of ground floor space with adequate façade treatment (70%+ transparent glazing, clearly defined entrances, adequate dooryard space for free flow of pedestrian movement, quality and durable materials at the ground floor, etc.).

5. If a business incentive has been requested, the developer or business owner has committed to providing a livable wage AND/OR employer sponsored benefits to all new employees associated with the proposed project.

Livable wage is defined as adequate hourly wage to allow employees to afford the cost of median rent in the city or region – currently $754/month median rent = $14.40 minimum hourly livable wage.


Scale

• Less than 4 points = Incentives not granted



city council study session - civicweb

Documents