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Home My WebLink About2024-09-18 Economic Development Commission Packet AGENDA Edmonds Economic Development Commission Wednesday, September 18, 2024 6PM – 8PM HYBRID MEETING The Economic Development Commission members will be meeting in person and/or remotely for this meeting. The public may join at the physical location or join through zoom. PHYSICAL LOCATION Brackett Meeting Room, Edmonds City Hall – 3rd Floor 121 5th Ave N, Edmonds, WA 98020 REMOTE MEETING/ZOOM INFORMATION: https://zoom.us/j/98696685791?pwd=Ryt0ZjVuK3ZCN0N4Q1RrMHZqSWpyQT09 Meeting ID: 986 9668 5791 Passcode: 901513 6:00 PM Call to Order 1. Roll Call and Recognition of Approved Absences 2. Approval of Agenda 3. Approval of August 21, 2024 Meeting Notes 4. Audience Comments (3 minutes per person) 5. Community Renewal Areas: high level review of the urban revitalization tool – Shane Hope 6. EDC Retreat a. Scheduling b. Pre-Retreat Warmup Discussion i. Desired outcomes – what do we want to walk away from the retreat with ii. Vision-building 7. Business Booster update 8. Liaison Updates a. City Council – Councilmember Eck b. Port of Edmonds – Selena Killin c. Chamber of Commerce – Ryan Crowther d. Planning Board – Lee Hankins 9. Roundtable Discussion 10. Adjourn 8:00 PM Next Regular meeting: October 16, 2024, 6 PM DRAFT Meeting Summary Economic Development Commission August 21, 2024 Page 1 CITY OF EDMONDS ECONOMIC DEVELOPMENT COMMISSION MEETING August 21, 2024 COMMISSIONERS PRESENT: Matt Cox, Chair Allan Townsend, Vice-Chair Nicole Hughes Darrol Haug Nick Perrault Natalie Seitz via Zoom Pete Spear via Zoom Kevin Harris via Zoom Kate Nolan – Student Representative COMMISSIONERS ABSENT: Carrie Mandak - unexcused LIAISONS PRESENT: Selena Killin, Port Commissioner, ex-officio – via Zoom Lee Hankins – Planning Board, ex-officio – via Zoom LIAISONS ABSENT: Chris Eck, Councilmember, ex-officio Ryan Crowther, Chamber, ex-officio GUESTS: Deborah Arthur via Zoom Ronald Bussiere via Zoom STAFF PRESENT: Todd Tatum, Director CCED via Zoom Megan Luttrell, Program Coordinator CCED Economic Development Commission meeting called to order by Matt Cox at 6:00 p.m. Call to Order 1. Roll Call and Recognition of Approved Absences: Carrie is absent. 2. Approval of Agenda: Nicole moves to approve the agenda; Darrol seconds; motion passes. 3. Approval of July 17, 2024, Meeting Summary: Strike Nicole as present and add Kevin H., Carrie & Nick as present. With those edits Darrol moves to approve the meeting summary; Nicole seconds; motion passed. 4. Audience Comments: None. 5. Tax Increment Financing – Presentation and Discussion: Todd gives a presentation on Tax Increment Financing (TIF), attached as Attachment A. A discussion follows the presentation. This is a taxing tool to allow the City to invest in the community. The biggest risk is if your planned for development doesn’t occur, therefore your planned for revenue doesn’t exist. The value comes from development that will increase the assessed property value. Todd explains a caveat, the MFTE program provides a tax exemption to property managers that provide rent controlled apartments, there is a property tax benefit for the property owners for 12 years which subsequently impacts the revenue the city would see. TIF wouldn’t be the only funding to support a project, it’s a piece of the funding. Natalie asks how this could interact with subarea plans and the Creative District. At this time, Todd hasn’t considered it for the Creative District. She points out that, DRAFT Meeting Summary Economic Development Commission August 21, 2024 Page 2 she sees this being a risky tool to use around the Hwy 99 due to the MFTE area and subsequent delay in revenue. He points out that Community Renewal and TIF are complementary of each other. Matt suggests the next topic the EDC is presented with is the Community Renewal concept. 6. Business Booster 2.0: Kevin gives a brief background on the creation of the website. He then walks the group through the current website. David Kaufer, who hosts the website, would have data analytics. Allan points out that there’s some maintenance work that needs to be done. The Copyright is 2022 and dead links need to be removed. Selena asks if there are any funds available to host a job fair/entrepreneur meetup here in Edmonds. Todd is supportive of the idea. Natalie asks how this overlaps with the services the Chamber provides. Kevin is not familiar with one place where all this information exists, but he does not have a clear idea of how the website overlaps with other services from the Chamber. Todd adds that this could be an extension or a complement of the Chambers Connect Edmonds events. Nick echoes the request for analytics. This information would help guide the Commission on determining how to move forward. Matt feels there is enough questions about this website, that it’s worth continuing the conversation. The website supports building the economy, which aligns with Commissions goals. Natalie adds that website should highlight local resources. Allan adds that websites accessibility needs to be considered. Matt will follow up with the website vendor and with Ryan at the Chamber for additional information and asks the group to think about the website and bring feedback to the next meeting. 7. EDC Retreat Scheduling – Finding a Date: Matt asks about weekends vs. weekdays for the retreat. Matt will work with Megan on getting a Doodle Poll sent out. 8. Liaison Updates: a. City Council – Councilmember Eck: Absent. b. Port of Edmonds – Selena Killin: Great news! 1.5M grant has been received. The Comp Plan had some inaccurate renderings of the Port property; the Commission wrote to Council and Mayor expressing concerns. Mayor Rosen is in conversation the Port about their concerns. Allan moves to extend the meeting by 10 minutes, Darrol seconds, motion passes. c. Chamber of Commerce – Ryan Crowther: Absent. d. Planning Board – Lee Hankins: they’ve been working on two major elements for the Comp Plan. The Housing Element is one. They’ve shared their feedback with Council. Staff is incorporating the Planning Board and Council feedback now. The other one is the Land Use Element. They had a joint session with Council last night. 9. Roundtable Discussion: Pete, wrapping his head around TIF. Natalie shares gratitude for the presentations and Matt’s leadership. The environmental impact statement for the Comp Plan is released or will be released shortly opening the comment period. Darrol has met with 6 of 7 council members to share the Blue Ribbon Panel outcomes and meets with the 7th tomorrow. He is actively working with his county tax group. Kate extends gratitude for the presentations. Nick thanks everyone for their input. Matt closes it out by thanking everyone. He attended Taste Edmonds a few weeks ago. DRAFT Meeting Summary Economic Development Commission August 21, 2024 Page 3 The Maker’s Market had more vendors and the Chamber funneled people to enter through the Market, it was clever! 10. Adjourn: 8:09 p.m. Next meeting: September 18, 2024, 6 PM location Hybrid – Brackett Room & Zoom Tax Increment Financing Overview 08/21/24 Todd Tatum, Director Community/Culture/Economic Development ATTACHMENT A Overview •Available to cities, counties, and ports. •Designed for specific project/site – Not build infrastructure and hope/wait for development. •Projects will not occur “but for” the public investment in infrastructure – “But- For” Requirement. •Results in creation of new assessed value, public benefits, construction of desired development and short/long-term jobs. •Taxes from the development fund the public infrastructure needed by the development. Community/Culture/Economic Development Overview Limitations on Increment Areas (IAs) •No more than two active increments and those may not overlap •IAs may not total more than $200m or more than 20% of assessed value of jurisdiction, whichever is less •Can’t add public improvements once IA adopted •IA must be retired no more than 25 years after establishment Community/Culture/Economic Development Overview Project Analysis •Description of the expected private development within the TIA, with and without proposed public improvements – But For Requirement •An assessment of any impacts to the following: •Affordable and low-income housing •Local business community •Local school districts •Local fire service, public hospital districts, and emergency medical services •Other junior taxing district Community/Culture/Economic Development Overview Project Analysis If 20% of the assessed value in the public hospital district or fire district impacted or the fire district’s annual report or adopted capital facilities plan demonstrates an increase in the level of service directly related to the increment area, a mitigation plan must be negotiated. If parties can not agree, the parties must proceed to arbitration – 3-member board with one appointed by TIF sponsor, one appointed by junior taxing districts and one appointed by other two arbitrators. Community/Culture/Economic Development Overview Project Analysis •Must include either specific or general description of public improvements along with cost estimates. Note: Public Improvement don’t need to be located inside of TIA, but there must be a nexus to private development. •Must include a jobs analysis. •Must include a risk assessment and mitigation plan. Note: Passage of the TIA Ordinance does not commit a TIF sponsor to fund any of the proposed public improvements. Community/Culture/Economic Development Overview •Provide notice to all local governments within increment area 90 days before submitting project analysis to Office of the State Treasurer (OST). •Submit to OST for review its 90-day review period. •Submit Project Analysis to all local governments 90 days prior to anticipated TIA ordinance adoption. •Hold two public briefings exclusively on the project no earlier than 90 days after submitting the project analysis to OST. •Publish notice in public newspaper. •Notice to county treasurer, county assessor, and governing body of each taxing district where the increment area is located. •Increment area effective June 1 of any year. Community/Culture/Economic Development Components Project Analysis •Previously discussed Community/Culture/Economic Development Components Public Briefings •Local governments wishing to create increment areas must hold at least two public briefings for the community that are solely on the tax increment project (RCW 39.114.020(7)). The public briefings must include the following elements: •A description of the increment area •The public improvements proposed to be financed with tax allocation revenues •A detailed estimate of tax revenues for the participating local governments and taxing districts, including amounts allocated to the public improvements Community/Culture/Economic Development Components Submit Copy of Project Analysis to State Treasurer Local governments must submit a copy of the project analysis for the proposed increment area to the State Treasurer’s Office for its review. Within 90 days of receiving the project analysis, the State Treasurer’s Office must submit its review of the project analysis to the local government. The review should include any revisions or enhancements deemed appropriate based on the requirements of the law. The local government must consider any comments that the State Treasurer’s Office provides. Community/Culture/Economic Development Components Adopt Ordinance Creating Increment Area Following receipt and consideration of the comments from the State Treasurer’s Office, the local government must adopt the ordinance establishing the increment area. The ordinance must contain the following (RCW 39.114.020(1)): •The boundaries of the increment area •The sunset date for the increment area (up to 25 years) •Identification of the public improvements to be financed •A provision that the increment takes effect on June 1 following adoption of the ordinance •A deadline by which construction of the public improvements will begin, with the deadline being at least five years in the future with extensions allowed for good cause Community/Culture/Economic Development Timeline Community/Culture/Economic Development Calculations Community/Culture/Economic Development Taxing District/Levy Type Levy Rate per $1,000 AV City regular levy $0.88 County current expense levy $0.95 Conservation futures regular levy $0.04 Flood district regular levy $0.10 Fire district regular levy $1.50 Fire district excess levy $1.49 Port regular levy (not for G.O. debt)$0.17 Library district regular levy $0.44 Local school regular levy $2.50 Local school excess levy $2.16 State school levy $2.93 TOTAL PROPERTY TAX RATE $13.16 Minus fire excess levy -$1.49 Minus local school excess levy -$2.16 Minus state school levy -$2.93 TAX ALLOCATION RATE $6.58 Calculations Community/Culture/Economic Development Property "Base Value" (2021 AV for 2022 Levy) City Regular Levy Rate New Construction Increment Value Tax Allocation Rate City Regular Levy Revenues Tax Allocation Revenues Parcel A $100,000,00 0 $0.88 ------$88,000 -- Parcel B $125,000,00 0 $0.88 ------$110,000 -- Parcel C $110,000,00 0 $0.88 ------$96,800 -- Parcel D $6,000,000 $0.88 ------$5,280 -- Parcel E $5,700,000 $0.88 ------$5,016 -- Parcel F $6,500,000 $0.88 ------$5,720 -- Calculations Community/Culture/Economic Development Property 2022 AV for 2023 Levy City Regular Levy Rate New Construction Increment Value Tax Allocation Rate City Regular Levy Revenues Tax Allocation Revenues Parcel A $101,500,0 00 $0.88 ------$89,320 -- Parcel B $127,000,0 00 $0.88 ------$111,760 -- Parcel C $111,650,0 00 $0.88 ------$98,252 -- Parcel D $6,090,000 $0.88 --$90,000 $6.58 $5,280 $592 Parcel E $5,780,000 $0.88 --$80,000 $6.58 $5,016 $526 Parcel F $6,600,000 $0.88 --$100,000 $6.58 $5,720 $658 Big Caveat – Federal Way MFTE CaseCommunity/Culture/Economic Development Big Caveat - Federal Way MFTE CaseCommunity/Culture/Economic Development Big Caveat - Federal Way MFTE CaseCommunity/Culture/Economic Development Examples •Kirkland Ordinance No. O-4846 (2023) – Creating tax increment area to finance streets, parks, and water/sewer infrastructure to enable a mixed-use, transit- oriented, and walkable development near bus rapid transit station; includes project analysis and State Treasurer's review •Port of Pasco Resolution No. 1569 (2021) – Creating a 150-acre, 25-year tax increment area to finance LTGO bonds to help construct publicly owned infrastructure improvements and enable development of $500 million milk processing facility; includes TIF procedural outline and State Treasurer's review •Wenatchee Ordinance No. 2023-02 (2023) – Creating tax increment area to finance street grade separation/extensions to improve access to developable property and create opportunities for redevelopment. Includes final staff report, project analysis, and State Treasurer’s review. Community/Culture/Economic Development QUESTIONS? Community/Culture/Economic Development