Community Development Advisory Board

COMMUNITY DEVELOPMENT ADVISORY BOARD REGULAR MEETING December 10, 2014 4:30 PM - 5:30 PM “The primary mission of the Community Development Advisory Board (CDAB) will be to monitor and maintain the city's economic development plan; make recommendations to the city council on development projects for which city incentives are requested; propose changes to policies governing economic development activities; and advocate for programs and activities that will improve the city's economic conditions. The CDAB will also review, comment on, and make recommendations to the City Council with respect to current or proposed ordinances of general applicability.” 1. Roll Call Margaret Fritzler Jean Garinger Dwayne Gentry Anndria Obeirne Dale Smith Jason Wojteczko 2. Public Forum 3. Regular Meeting Minutes - September 3, 2014 Recommend a Motion to: Approve the regular meeting minutes of September 3, 2014, as presented. 4. Development Manager Report 5. Review Progress on Economic Development Plan and Brainstorming Session Recommend a Motion to: Direct staff to research items from the brainstorming session and report findings at the February 18, 2015 meeting. 1 6. Amendment to the Special Development District Policy Recommend a Motion to: Recommend the amended Special Development District Policy to the City Council. 7. 2015 Meeting Schedule Recommend a Motion to: Adopt the recommended 2015 meeting schedule. 8. Chamber Update 9. Adjournment 2 Community Development Advisory Board 3. Meeting Date: 12/10/2014 Submitted By: Taylour Tedder, Development Manager Subject: Regular Meeting Minutes - September 3, 2014 Recommend a Motion to: Approve the regular meeting minutes of September 3, 2014, as presented. Attachments Minutes 3  COMMUNITY DEVELOPMENT ADVISORY BOARD MINUTES September 3, 2014 12:30 – 1:30 pm CITY OF DERBY ROLL CALL MEMBERS ABSENT Margaret Fritzler Anndria Obeirne Dale Smith Jason Wojteczko X Jean Garinger Dwayne Gentry CITY STAFF PRESENT: Kristy Bansemer Marcia Hartman Taylour Tedder Kathy Sexton Dan Squires Dion Avello Vaughn Nun Linda Stinnett Meeting was called to order at 12:45p.m. PUBLIC FORUM OPENED PUBLIC FORUM CLOSED CONSIDERATION OF MINUTES - May 28, 2014 MOTION: Jean Garinger SECOND: Dwayne Gentry VOTE: 5-0 CONSIDERATION OF SPECIAL MEETING MINUTES - July 16, 2014 MOTION: Dale Smith SECOND: Jean Garinger VOTE: 5-0 DISCUSSION – Development Manager Report: Taylour provided a brief background regarding the history of the West End Business Park, formerly known as the Derby Business Park. He indicated that the area was a 30 acre site with 15 lots, and 7 lots are available for business development opportunities. Taylour spoke about the origins of current businesses which CDAB members toured, including BRG Precision Products, Mockry & Sons, Premium Auto Restoration and Mid Continent Controls. He mentioned the newly designed business park sign located southeast of BRG on the north side of Madison Avenue. 4 Jean asked for a comparison in price of the West End Park lots compared to Rock Road lots. Taylour indicated Rock Road lots are approximately $5.00 per square foot, compared to 70 cents per square foot for West End Business Park lots. Dan Squires indicated that the estimate could command a higher amount. Kathy Sexton indicated that the price could vary depending on whether the lots were platted and whether they contained existing utility access. Jean asked if there were building restrictions within the West End Business Park. Taylour answered that it was currently zoned as M-1 Industrial District, which is designed for general manufacturing. He also indicated the park maintains building covenants. He addressed the pamphlet provided to members at the meeting and pointed to the mapped area and identified the lots currently for sale. He referred to the reverse side of the pamphlet and indicated it was the concept for the advertising that will be used to market the West End Business Park development. Dwayne asked if the companies plan to reapply for the city incentives after the 10 year expiration, and he asked if they needed to expand or increase employment to qualify. Tayjour said companies could be eligible if they apply and expand. He said Mid Continent Controls is no longer receiving the tax abatement and BRG’s will expire in 2015. Dale asked Taylour if he could provide a comparison of the Corporate Park to the West End Business Park. Taylour said the Corporate Park is a larger development, approximately 280 acres, which currently has Derby Public Works Department as a tenant. He said he has received site requests at this particular site for larger lots with highway access that would command bigger developments than the West End smaller lots. Kathy said that Derby’s target market includes smaller businesses that attract Derby residents who have started their own business and want to expand in Derby, or individuals that have moved to Derby who choose to relocate a business from another city. She mentioned the recent advertisement pamphlet created that will be used to step up efforts in announcing opportunities to grow business in Derby. She indicated that Weigand Realtors was recently hired to assist with Derby’s efforts regarding the West End Business Park development. Kathy said the Corporate Park has a unique target of larger businesses rather than the smaller businesses targeted for the West End. Taylour mentioned that the Corporate Park lots list for approximately $2.50 to $8.00 per square foot of acreage. DISCUSSION – Chamber Update: Mark Staats said the Chamber is preparing for the Taste of Derby Auction to be held October 16, 2014 at the Kansas Star Arena. He said they will have their regular luncheon Thursday, September 11, 2014 and will feature guest speaker Derek Moody, an Iraq war veteran. MOTION TO ADJOURN: Dwayne Gentry SECOND: Dale Smith VOTE: 5-0 Meeting adjourned at 1:08 p.m. 5 Development Manager’s Report Development Performance Measures – 3rd quarter Current Period Year to Date Previous YTD Derby Business Requests for 8 50 44 Assistance Other New Business Requests 31 267 234 for Assistance Development Highlights – Business requests in September and October were quieter than the summer months. The level of interest remains above the same time period last year.  We recieved several requests for proposal of economic development projects from the Kansas Department of Commerce; however each project required sites with large existing buildings which we do not have to offer.  Coordinated with several business owners looking to expand their businesses into multiple locations around the metro area that may be interested in Derby.  Sent another 30 letters to registered businesses, advising them of services the City can provide with regard to expansion, marketing, demographics, and professional services.  The electric vehicle charging station has been received from Westar Energy. Work to coordinate installation at Aviator Church is ongoing.  Attended the Kansas Economic Development Alliance conference, attended the International Economic Development Association’s Credit Analysis Course, and IEDC’s Annual Conference. The learning experiences helped gain several innovative ideas regarding business retention, expansion, and new approaches we can use while editing policies, performance measures, and the economic development plan in the coming months.  Continued work to promote the remaining lots at the West End Business Park.  Developed a project website for the West End Development Plan which currently serves as a place firms interested in our RFP can find relevant maps and documents. The website will also serve as a project site for residents and interested parties throughout the planning process.  Created easier to read replacement banners for the Buckner Business District and working on a second monument sign for the north end of the district.  Presented a look at Derby’s demographics and recent projects at the Derby Chamber of Commerce Luncheon in November. 6 Community Development Advisory Board 5. Meeting Date: 12/10/2014 Submitted By: Taylour Tedder, Development Manager Subject: Review Progress on Economic Development Plan and Brainstorming Session Background: The City Council adopts an Economic Development Plan every three years. The document is used to guide and accomplish economic development efforts. Part of CDAB's primary mission is to monitor and maintain the plan. Since the current plan is for 2013-2015, it is time to begin efforts to develop a plan for the next three years. CDAB will review progress on the current plan and brainstorm ideas for the 2016-2018 plan. Schedule for 2016-2018 plan: February 18, 2015 - Continue brainstorming, staff will report findings of questions from December meeting. May 27, 2015 - Discuss draft 2016-2018 plan. August 26, 2015 - Recommend final draft 2016-2018 plan to the City Council. Recommend a Motion to: Direct staff to research items from the brainstorming session and report findings at the February 18, 2015 meeting. Attachments 2013 ED Plan 7  Economic Development 2013-2015 Plan WWW.DERBYWEB.COM 8 Business Retention Strategy 1: Strategy 3: Business retention Partner with Derby Chamber of Encourage new capital invest- programs establish Commerce to support Derby ment in existing commercial relationships between businesses through opportunities districts, helping to preserve community businesses and for networking and education. Derby’s commercial areas. government to strengthen existing companies, Strategy 2: Strategy 4: establish early warning Create a business handbook on Explore possibility of business systems to identify at-risk the city’s new website that will incubator space that will attract businesses, and ensure contain key information for and support start-ups and that public programs meet existing businesses. established independent local business needs. contractors. -International Economic Development Council Business Attraction Strategy 1: Strategy 4: Capitalize on partnerships with Pursue third-party certification regional and statewide economic of one or more large sites in development groups to increase Derby. Certification assures name recognition and raise potential buyers that sites are awareness of Derby. fully “shovel-ready” and that Business attraction and projects can begin in a timely recruitment was once manner. considered the main Strategy 2: approach to economic Continue to initiate quarterly development. It’s also the contacts with commercial real Strategy 5: estate professionals, increasing Explore possibility of establishing most expensive. the visibility of Derby in the a space to attract and support Wichita metro area. start-ups and/or established Attracting new businesses independent contractors. into a community can quickly increase the tax Strategy 3: base, jobs, and the Develop, and review annually, Strategy 6: a list of target industries and Review incentive policy and diversity of the local identify opportunities for recommend modifications economy. outreach, such as trade shows when necessary. -International Economic and consultant events to reach Development Council these target audiences. Approved March 12, 2013 9 Housing & NeighborhoodsInside Story Headline Strategy 1: Strategy 3: Strategy 4: Complete renovations to owner- Consider new programs to Work with builders and occupied homes authorized encourage private investment residential developers to through the city’s final HOME in existing residential neighbor- encourage development of Grant. hoods. With elimination of the new housing choices that will HOME Grant program in 2012, appeal to residents of all ages Strategy 2: opportunities may exist to and income levels. Host events to inform area real leverage city funding with estate professionals why Derby private dollars to continue is “the place to be.” improving older neighborhoods. Economic Development Marketing Strategy 1: Continue participating in community marketing efforts for Derby with other community partners. Communities engage in marketing to achieve multiple economic development objectives, including: Strategy 2: · Attraction, retention, and expansion of Enhance existing website businesses information to better promote economic development · Attraction and retention of residents and opportunities in Derby. tourists · Improvement of the community's image locally, Strategy 3: Research and evaluate nationally, and internationally opportunities to advertise Derby · Promotion of policies and programs to prospective business owners and business development -International Economic Development Council specialists. Strategy 4: Develop economic development themed marketing materials to use in reaching out to target industries and businesses. 10 About the Derby Economic Development Advisory Board : The mission of the Economic Development Advisory Board is to promote, stimulate, develop and improve the general economic welfare of the City and its environs, including but not limited to maintaining the city’s economic development plan; making recommendations to the city council on development projects for which city incentives are requested; proposing changes to policies and procedures governing economic development activities; and advocating for programs and activities that will improve the city’s economic conditions. The six-member board meets monthly and each member serves a two-year term. One board member is designated by the Derby Chamber of Commerce. Economic Development Advisory Board Members: Ariel Lee - Financial Advisor, Edward Jones Margaret Fritzler - Retail Loan Officer, Intrust Bank Don Harris - Director of Supply Chain Management, Spirit AeroSystems Durrel Kelley - Healthcare Consultant, Great Plains Health Alliance Lisa Moling - Insurance Agent, American Family Insurance Joanna Neises - Owner, Nicely Done LLC Derby’s mission is to create vibrant neighborhoods, nurture a strong business community and preserve beautiful green spaces. Derby’s vision is to be a community where dreams take root and thrive. www.derbyweb.com 11 Community Development Advisory Board 6. Meeting Date: 12/10/2014 Submitted By: Taylour Tedder, Development Manager Subject: Amendment to the Special Development District Policy Background: The Special Development District Policy was adopted by the City Council on June 22, 2010. This policy includes Community Improvement Districts (CID), Enterprise Zones, Tax Increment Financing Districts (TIF), Transportation Development Districts (TDD), and the Buckner Business District. The State of Kansas eliminated Enterprise Zones in 2010. Removal of all references to enterprise zones will ensure the policy contains up-to-date information. Recommend a Motion to: Recommend the amended Special Development District Policy to the City Council. Attachments Special Development District Policy Buckner Business District Map Buckner Business District B-2A Zoning 12  City of Derby Special Development District Policy I. Purpose The purpose of this policy is to establish the official policy of the City of Derby for the creation of special economic development districts, including uses in accordance with State law. The appropriate purpose and use of special development districts is to broaden and diversify the tax base, create new job opportunities and promote the economic growth and welfare of the City of Derby. II. Special Development Districts Special development district programs that will be considered by the City of Derby may include, but are not limited to, Community Improvement Districts (CID), Enterprise Zone (EZ), Tax Commented [T1]: Enterprise Zones were phased out four years ago. Increment Financing Districts (TIF), and Transportation Development Districts (TDD). The City established the Buckner Business District (BBD) as a mixed use district suitable for both residential and commercial development. Complete program information is available from City economic development staff. III. Eligibility Eligibility for special development district incentives will vary from program to program. In general, special development district projects must meet the following criteria: a. Generate development that will enhance the city’s economic conditions; b. Result in significant property improvements that otherwise would not be economically feasible; c. Promote the redevelopment of property that would otherwise remain unimproved; d. Apply to commercial, industrial or mixed-use properties. IV. Application Process Applying for a special development district program is typically a multiple-step process. Typically, about 60-90 days are needed to achieve approval for projects. This time frame begins the day an application is submitted and allows time for staff review, Economic Development Board review, required public hearings or other actions, Kansas Department of Commerce action, City Council consideration and City council approval. Refer to the City Incentives Application Packet for additional information. 1 13 V. Project Evaluation Projects are evaluated on a case by case basis. Projects must meet all statutory requirements as set forth by State law; refer to specific program for details. VI. Program Summaries A. Community Improvement Districts The Community Improvement District program enables financing of certain projects through special assessments or a dedicated CID sales tax. Projects can be funded with general or special obligation bonds, or on a pay-as-you-go basis. CID districts can be created without notice or a public hearing upon receiving a petition signed by all landowners in the proposed district, if financing only by assessments is requested and no general obligation bonds are to be issued. A second petition method allows financing through special assessments and a CID sales tax, as well as general obligation bonds of the municipality. Such a petition must be signed by owners of more than 55% by area of land and owners collectively owning more than 55% by assessed value of the land within the proposed district. Before creation of the CID, a public hearing must be held following proper notice being published. B. Enterprise Zone Program The Kansas Enterprise Zone Program provides potential Kansas sales tax exemption and Kansas income/privilege tax credits to businesses creating new jobs in Kansas through major capital investment projects. Enterprise zone benefits are available for business that locate in designated areas; see Appendix A for eligible areas in Derby. C.B. Tax Increment Financing Districts Tax Increment Financing (TIF) is a financing and development tool that allows future real property taxes and other taxes generated by new development to pay for costs of construction of public infrastructure and other improvements. TIF is designed to encourage development of blighted, substandard and economically underutilized areas that would not be developed without public assistance. D.C. Transportation Development Districts A Transportation Development District (TDD) is a special taxing district whereby a petitioner of 100% of the landowners in an area request either the levy of special assessments or the imposition of a sales tax of up to 1% on goods and services sold within a given area. Upon creation of a TDD by a municipality, the revenue generated by TDD special assessments or sales tax under Kansas law may pay the costs of transportation infrastructure improvements in and around the new development. 2 14  E.D. Buckner Business District Located on Buckner Street between Baltimore and Meadowlark, this area was rezoned in 2009 to allow mixed uses on both sides of the street. Previously, residential properties were located on one side of the street and businesses on the other. The new B-2A zoning designation allows structures either to continue as residential dwellings or permits conversion to commercial properties. The high traffic counts in this area make it an attractive location for many types of small businesses as allowed within a list of permitted business types. See Appendix B for a map of the area and Appendix C for the complete zoning regulations. VII. Appendices a. Derby Enterprise Zone Map b.a. Buckner Business District Map c.b. Buckner Business District B-2A Zoning 3 15  Baltimore APPENDIX B Fulton Av Meadowlark Blvd Meadowlark Blvd e Prairie Ln Kokomo Ave Maryland St Dr Georgie Ave oney Baltimore Ave Harral St Dr as an Short St tvie w ers Ave Ple K-15 Fernell St tosh McIn Hw y Ohio St Buckner St Nelso Rd n Dr Lincoln St Baltimore Ave Georgie Ave Kokomo Ave Derby Ave Valley St Greenway St Greenway St Woodland Dr Ne lso nD James St r Crestway Ave Fro ntag eR Crestway Ave 15 Buckner St d K- Hw y Baltimore Ave Georgie Ave Kokomo Ave Derby Ave Ne lso Scale: 1" = 400' nD Wedgewood Dr Buckner Business District r 16 APPENDIX C 17 18 19 20 21 Community Development Advisory Board 7. Meeting Date: 12/10/2014 Submitted By: Taylour Tedder, Development Manager Subject: 2015 Meeting Schedule Background: CDAB will meet quarterly and as needed in 2015. Meetings will be held at Derby City Hall at 4:30 p.m. in the Panther Room. CDAB members will review their calendar to ensure no conflicts with the recommended schedule. Recommended meeting dates: February 18, 2015 May 27, 2015 August 26, 2015 December 2, 2015 Recommend a Motion to: Adopt the recommended 2015 meeting schedule. 22