Community Development Advisory Board

AGENDA Community Development Advisory Board Meeting 4:30 PM - Wednesday, May 6, 2020 Panther Room / GoToMeeting Page 1. CALL MEETING TO ORDER 2. ROLL CALL 3. PUBLIC FORUM 4. CONSIDERATION OF MINUTES 4.A. Adoption of Minutes 3-9 Recommended Motion: Approve the regular meeting minutes of May 8, 2019, as presented. May 8, 2019 CDAB Minutes 5. NEW BUSINESS 5.A. Introductions 11 Agenda Item Report - AIR-20-094 - Pdf 5.B. Election for Chair and Vice Chair 13 Recommended Motion: Nominate a Chair Nominate a Vice Chair Agenda Item Report - AIR-20-095 - Pdf 5.C. Adopt 2020-2021 CDAB Meeting Schedule 15 Recommended Motion: Adopt the schedule of Community Development Advisory Board meeting dates for 2020-2021, as presented. Agenda Item Report - AIR-20-099 - Pdf 5.D. Development Manager Report 17 - 20 Agenda Item Report - AIR-20-100 - Pdf 5.E. CDAB Orientation Manual 21 Agenda Item Report - AIR-20-101 - Pdf 6. ANNOUNCEMENTS 7. ADJOURNMENT Page 1 of 21 Page 2 of 21  CITY OF DERBY MEETING OF THE COMMUNITY DEVELOPMENT ADVISORY BOARD REGULAR MEETING MINUTES MAY 8, 2019 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. CALL MEETING TO ORDER 2. ROLL CALL MEMBERS PRESENT LINDSAY DEARDUFF MARGARET FRITZLER CHRIS MOSLEY ANNDRIA OBEIRNE JENNY WEBSTER MEMBERS ABSENT JASON WEBER OTHER ATTENDEES DAN SQUIRES, PLANNING & ENGINEERING DIRECTOR MARK STAATS, PRESIDENT/CEO DERBY CHAMBER 3. PUBLIC FORUM 4. CONSIDERATION OF MINUTES 4. A. Regular meeting minutes of November 7, 2018 Recommend a Motion to: Approve the regular meeting minutes of November 7, 2018, as presented. Moved by Anndria O'Beirne, seconded by Jenny Webster, to approve the regular meeting minutes of November 7, 2018, as presented. Vote: 5 - 0 Other: Jason Weber (ABSENT) 5. NEW BUSINESS 5. A. Introductions May 8, 2019 Minutes Page 3 of 21 5. A. Introductions Background: Development Manager Marcia Hartman will lead introductions of new and current CDAB members. 5. B. Conduct an election for Chairman and Vice-Chairman Background: In the second quarter of each year, the CDAB is required to elect from its members a chairman and vice-chairman, who shall serve in such capacity for one year. Recommend a Motion to: Nominate a Chairman Nominate a Vice-Chairman Moved by Anndria O'Beirne, seconded by Lindsay Dearduff, to nominate Chris Mosley for Chairman. Vote: 5 - 0 Other: Jason Weber (ABSENT) Moved by Christopher Mosley, seconded by Anndria O'Beirne, to nominate Jenny Webster for Vice-chairman. Vote: 5 - 0 Other: Jason Weber (ABSENT) 5. C. Adopt the 2019 - 2020 CDAB Meeting Schedule Background: Each year the Community Development Advisory Board adopts a meeting schedule. The board typically meets quarterly on the first or second Wednesday of the month. Suggested meeting times are as follows: 2019-2020 Meeting Schedule Wednesday, August 14, 2019, 4:30-5:30 p.m. Wednesday, November 6, 2019, 4:30-5:30 p.m. Wednesday, February 12, 2020, 4:30-5:30 p.m. Wednesday, May 6, 2020, 4:30-5:30 p.m. Special meetings may be scheduled as needed. Recommend a Motion to: Adopt the schedule of Community Development Advisory Board meeting dates for the 2019 - 2020 calendar year as presented. Moved by Jenny Webster, seconded by Anndria O'Beirne, to adopt the schedule of Community Development Advisory Board meeting dates for the 2019 - 2020 calendar year as presented. May 8, 2019 Minutes Page 4 of 21  Vote: 5 - 0 Other: Jason Weber (ABSENT) 5. D. Development Manager Report Background: Current Year to Previous Period Date YTD March - April Derby Business Requests for Assistance 17 65 69 New Business and Other Requests for 23 34 53 Assistance Development Highlights: 577 of 620 registered businesses have renewed their registration. Discussed business development plans and ideas with 3 prospects. Communicated with 2 business owners regarding expansion of their business utilizing lots in the West End Business Park. Communicated with a prospect interested in leasing the City owned building on Nelson Dr. (old Rent-A-Center) 5. E. CDAB Orientation Manual Background: City staff has been working to prepare orientation manuals to support the efforts of individuals who are willing to serve on the communities many boards. The board orientation manuals are intended to help board members better understand their role in the organzation. The orientation manual provides information regarding the purpose of the board, general responsibilities and operating procedures, attendance, communications and open meetings law. It also serves to build a working relationship among board members that promotes ongoing support and comes to an agreement on how they will carry out their work. The intent of the orientation manual is to get board members up to speed on the information they need to know so they can do the best job they can while serving. Marcia Hartman, Development Manager presented the CDAB orientation manual to members. She explained that the manual was created to assist board members in understanding the purpose of the Community Development Advisory Board, general responsibilities, confidentiality provisions, the role of the staff liaison and open meetings law. Marcia stated that compliance with the Kansas Open Meetings Act (KOMA) was an important aspect of board meetings. She asked the members to review the manual and let her know if they had any questions. 5. F. Sale of Lot in West End Business Park to Aero-Plains, LLC May 8, 2019 Minutes Page 5 of 21 5. F. Sale of Lot in West End Business Park to Aero-Plains, LLC Background: In 1999, the City of Derby developed the Derby Industrial Park 2nd Addition, currently known as the West End Business Park (WEBP), to ensure availability of affordable property for new or expanding businesses. This in turn encourages capital investment and job creation in the community. In recent years, the City has shifted its economic development efforts to emphasize retaining and growing local businesses. In 2016, the City sold a lot in the WEBP to Aero-Plains, LLC. dba Aircraft & Commercial Enterprises (ACE) allowing them to expand their business while remaining in Derby. The City sold the lot to ACE for $1 in lieu of any other incentives. The purchase agreement required ACE to complete construction of a new building within 24 months of the sale. ACE completed the terms of that agreement. ACE has approached the City requesting a similar arrangement for sale of an adjacent lot to allow further expansion. ACE would like the City to sell them Parcel B, Lot 3 in the park for $1. Parcel B, Lot 3 is 1-acre and is located directly north of ACE's current lot. Aircraft & Commercial Enterprises (ACE) was established in 1984 and has been a part of the Derby business community since 2007. ACE, currently located at 800 N. River St., employs 38 people and anticipates hiring an additional 2 to 5 employees. ACE specializes in aircraft service and identification products (labels, wire markers, cable tags, ID tapes, connectors, printing systems, backshells, heat shrink tubing, fasteners, ties, straps, wire strippers & cables). ACE owner Mike Helmer desires to expand their operations by constructing a 7,500 to 10,000 sq. ft. addition north of the existing building. The value of the proposed expansion is estimated to be between $700,000 and $1,000,000. Based on the City's incentives policy, ACE likely would not qualify for tax incentives. Staff recommends that the City sell the land to ACE for $1, in lieu of any other incentives. Financial/Sustainability Considerations: Sale and development of this land will return the property to the tax roll and result in an increase in the city's assessed valuation. The purchase price and any additional sums due from buyer shall be paid at the time of closing. Closing costs will be split evenly between the City and the purchaser. Legal Considerations: The purchase contract will be prepared by the City Attorney. Policy Considerations: The City's Economic Development Plan emphasizes the need to retain and grow local businesses. The transaction facilitates the continued growth of a successful local business and adds to the City's tax base. Sale of the lot to ACE for $1.00 is in lieu of any other incentives. Recommend a Motion to: Recommend the City Council authorize sale of Parcel B, Lot 3, Block B, Derby Industrial Park 2nd Addition to Aero-Plains, LLC. for $1. May 8, 2019 Minutes Page 6 of 21  Marcia Hartman, Development Manager presented the agenda report. Anndria O'Beirne, Board Member asked if there is an agreement that stipulates the buyer will build within a certain period of time. Hartman answered yes; the requirement will be stated in the contract between the city and the buyer. Typically the buyer is required to develop within 1-2 years. She added that the next step will be to review the contract terms with the buyer and take CDAB's recommendation to the City Council for approval. Once approved by the City Council, the buyer will go through a Site Plan Review and Commercial Building Plan review before proceeding to build. Dan Squires, Planning & Engineering Director added that the contract will have a specific requirement for performance in the time frame that it has to be built. He said staff wouldn't recommend to the City Council a land sale for a dollar if there wasn't a specific mechanism for performance stated for them to build and end up on the tax rolls and be productive for the City. A previous contract stated that if development did not occur the land would revert back to the City. O'Beirne asked if there were provisions in place that required building a facility rather than just paving or creating parking or storage spaces. Hartman said the West End Business Park has restrictive covenants, a developers agreement and zoning regulations they must comply with to develop in the WEBP and those requirements explain what can be built in the industrial park. Moved by Anndria O'Beirne, seconded by Margaret Fritzler, to approve a recommendation for the City Council to authorize the sale of Parcel B, Lot 3, Block B, Derby Industrial Park 2nd Addition to Aero-Plains, LLC. for $1. Vote: 5 - 0 Other: Jason Weber (ABSENT) 5. G. Sale of Lot in West End Business Park to Ten Talent, LLC Background: In 1999, the City of Derby developed the Derby Industrial Park 2nd Addition, currently known as the West End Business Park, to ensure availability of affordable property for new or expanding businesses. The intent was to encourage capital investment and job creation in the community. The Business Park is 30 acres and is currently home to many growing businesses such as BRG Precision Products, Mid Continent Controls, Mockry & Sons Machine Co., Aircraft & Commercial Enterprises, and ICS Collision Center. In recent years, the City has shifted its economic development efforts to emphasize retaining and growing local businesses. Ten Talent, LLC was established in 2011 and has been a part of the Derby business community since 2013. Ten Talent is currently located at 2444 N. Nelson Dr. and currently employs 12 people. They anticipate hiring 10 to 12 additional employees in the next 5 years. Ten Talent specializes in lawn maintenance and landscaping and sprinkler systems, and currently conducts the majority of their business in the Derby market. Ten Talent owner Brent Topham desires to expand the business by constructing a new 8,000 sq. ft. facility in the West End Business Park. The estimated value of the proposed facility is $550,000. The expansion plans include addition of a small engine repair shop in the future. May 8, 2019 Minutes Page 7 of 21  Ten Talent has requested the City sell Lot 5 in the park to them for $1. This would allow them to invest more funds in the building they construct. Lot 5 is 2.09 acres and is located on the east side of the prak between current lots owned by Aircraft & Commercial Enterprises and BRG Precision Products. Sale of the property for $1 would be in lieu of any other incentives. The city has a history of facilitating expansion of local businesses with similar transactions. Financial/Sustainability Considerations: Sale of the lot and development of this land will return the property to the tax rolls, resulting in an increase to the city's assessed valuation. The purchase price and any additional sums due from buyer shall be paid at the time of closing. Closing costs will be split evenly between the City and the purchaser. Legal Considerations: The purchase contract will be prepared by the City Attorney. Policy Considerations: The City's Economic Development Plan emphasizes the need to retain and grow local businesses. The transaction facilitates the continued growth of a successful local business and adds to the city's tax base. Sale of the lot to Ten Talent for $1 is in lieu of any other incentives. Recommend a Motion to: Recommend the City Council authorize sale of Lot 5, Block B, Derby Industrial Park 2nd Addition to Ten Talent, LLC. for $1. Marcia Hartman, Development Manager presented the agenda report. Chris Mosley, Board Chair asked if the owner planned to expand his business. Hartman said the owner would like to expand his existing business and pursue additional ventures related to his business. Dan Squires, Planning & Engineering Director added that the owner is wanting to invest in a small engine repair shop in the future that would not only provide repair to his mowers but also provide a service to the community. He wants to begin expanding his lawn business and then in a couple of years he would add a small engine repair. Moved by Christopher Mosley, seconded by Jenny Webster, to approve a recommendation for the City Council to authorize the sale of Lot 5, Block B, Derby Industrial Park 2nd Addition to Ten Talent, LLC. for $1. Vote: 5 - 0 Other: Jason Weber (ABSENT) 6. ANNOUNCEMENTS Marcia Hartman, Development Manager stated that she did not have any announcements. She asked Mark Staats if he had any news to share. Mark Staats, President/CEO Derby Chamber of Commerce stated that the Chamber wrapped up one of its biggest events, the annual Chamber Golf Tournament May 3rd. May 8, 2019 Minutes Page 8 of 21 7. ADJOURNMENT Moved by Jenny Webster, seconded by Christopher Mosley, to adjourn the meeting. Vote: 5 - 0 Other: Jason Weber (ABSENT) ______________________________ _______________________________ Stephanie Cox Chris Mosley Recording Secretary Chairperson May 8, 2019 Minutes Page 9 of 21 Page 10 of 21 New Business Item Subject: Introductions Meeting: Community Development Advisory Board - 06 May 2020 Presented by: Marcia Hartman, Development Manager BACKGROUND: • Development Manager Marcia Hartman will lead introductions of CDAB members. o Returning members: Lindsay Dearduff; Chris Mosley; Jason Weber o New members: Jennifer Brown; Greg Anderson; K.J. Jeffery Page 11 of 21 Page 12 of 21 New Business Item Subject: Election for Chair and Vice Chair Meeting: Community Development Advisory Board - 06 May 2020 Presented by: Marcia Hartman, Development Manager BACKGROUND: • In the second quarter of each year, the CDAB is required to elect from its members a chair and vice-chair, who shall serve in such capacity for one year. RECOMMENDED MOTION: • Nominate a Chair • Nominate a Vice Chair Page 13 of 21 Page 14 of 21 New Business Item Subject: Adopt 2020-2021 CDAB Meeting Schedule Meeting: Community Development Advisory Board - 06 May 2020 Presented by: Marcia Hartman, Development Manager BACKGROUND: • Each year the Community Development Advisory Board adopts a meeting schedule. • The board typically meets quarterly on the first or second Wednesday of the month. • Special meetings may be scheduled as needed. o Suggested meeting times are as follows: ▪ Wednesday, August 5, 2020 ▪ Wednesday, November 4, 2020 ▪ Wednesday, February 3, 2021 ▪ Wednesday, May 5, 2021 RECOMMENDED MOTION: • Adopt the schedule of Community Development Advisory Board meeting dates for 2020-2021, as presented. Page 15 of 21 Page 16 of 21 New Business Item Subject: Development Manager Report Meeting: Community Development Advisory Board - 06 May 2020 Presented by: Marcia Hartman, Development Manager BACKGROUND: Current Period Year to Date Previous YTD March - April Derby Business Requests for 28 66 63 Assistance New Business and other Requests for 16 36 35 Assistance Development Highlights: • 557 businesses are currently registered for 2020; 35 businesses are currently pending renewal. • Discussed business development plans and expansion ideas with 2 prospects. • Worked with the Assistant City Planner on 2 vacation requests. o City Council approved a request for vacation of an alley located in the West End, at the April 28 council meeting. ▪ The alley vacated is between Madison Ave. and Market St., west of Water St. and east of River St. ▪ The vacation was necessary to facilitate expansion of BG Products. o Staff is working to facilitate vacation of a second alley also in the West End. • Provided demographic and west end development investment information to a real estate property management company. • Provided COVID-19 correspondence to businesses. • Attended Go-To-Meeting for quarterly Economic Development Officers meeting. • Worked with staff to develop a proposal to waive or reduce fees associated with redevelopment in existing areas developed prior to 1996. o In 2015, following adoption of the West End Development Plan, the City Council reduced several development fees for projects in the West End and Buckner Business District. o The changes, passed unanimously by the Council on April 28th, expand both the type of fees being waived/reduced and the geographical area to which the reductions apply. Page 17 of 21  o Planning approvals such as zone changes and variances are common in redevelopment and the fees result in up front costs prior to the availability of construction funding. A comprehensive list of the waived/reduced fees is included in the attached council action report. • Recognizing the impacts of COVID-19 on local businesses, the City Council also voted to waive business registration fees for 2021, due in December of 2020. o Businesses will still be required to register, which provides the City with important emergency contact information, but the registration fee ($20) will be waived. o Staff is also working with its permitting software vendor (Energov) to allow businesses to register and pay online. This effort is a direct result of feedback from local businesses. ATTACHMENTS: Fees Action Report Page 18 of 21  New Business Item DERBY) Subject: Update Fee Resolution to Support lnfill and Redevelopment Meeting: City Council28 Apr 2020 — Presented by: Kathy Sexton, City Manager BACKGROUND: Most of the City's fees and charges are accumulated into one resolution, which is periodically reviewed for sufficiency. The most recent updates were made in January 2020 for rental facilities. At that time, it was noted that staff was starting to work on an expansion of the discounts on building permits and development fees to encourage redevelopment of older areas of town. In 2015, following adoption of the West End Development Plan, the City eliminated or reduced various fees to promote reinvestment in the West End and Buckner Business District. Fees modified in 2015 include the following: o Demolition Permits ($50) Fee waived - Permanent Sign Permit ($50) Fee waived - Platting ($500+) Fee waived — Lot Split ($250) Fee waived - Vacations ($250) Fee waived - Site Plan Review ($500) Fee waived - 0 Building permits (including commercial plan review) Fee reduced 50% - Now, to promote infill and redevelopment more comprehensively throughout older parts of the City, expansion of both the extent of fees that are reduced and the area where reductions apply is proposed. Additional fees proposed to waive include the following: o 2021 Business Registration ($20) due December 2020 Petition ($150) Platting Exemption ($100) Variance ($150) Special Use Permit ($350) Exception Permit ($350) Zoning Change ($350) Planned Use Development ($750) The applicant would still be responsible for costs associated with planning approvals such as document recording fees and certi?ed ownership lists. The above reduced and waived fees are proposed to apply to (a) all commercially zoned areas where, as determined by the Zoning Administrator, development was initiated before 1996, (b) the West End Business Park, and (c) redevelopment of the Pleasantview Elementary School site. o This expansion of fee reductions broadens the definition and removes the need to have a map in this resolution. OOOOOOO OOOOO Page 19 of 21  o All other changes recommended to the fee resolution are minor and technical in nature. FINANCIALISUSTAINABILITY CONSIDERATIONS: - Making occasional adjustments to fees to meet changing needs is consistent with prudent financial management and community planning. POLICY IMPLICATIONS: - The experience gained since 2015 when fee reductions began as a way to incentivize redevelopment in the West End and Buckner Business District has shown us that redevelopment efforts often require multiple procedures and thus more fees than new development, so reducing the cash required up front for multiple administrative procedures and permits is a meaningful and useful tool for redevelopment of older areas. It provides a way for the City to share the cost of redevelopment with the private sector. - Also since 2015, the City has developed a K-15 Area Plan and plans to construct street and drainage improvements to encourage redevelopment in this area. This expansion of the program to reduce fees also helps further this goal, as well as assisting in any future redevelopment of the Pleasantview Elementary School site and other older properties. RECOMMENDED MOTION: - Approve the resolution, in substantially the form presented. ATTACHMENTS: Fee Resolution Page 20 of 21 New Business Item Subject: CDAB Orientation Manual Meeting: Community Development Advisory Board - 06 May 2020 Presented by: Marcia Hartman, Development Manager BACKGROUND: • City staff prepares orientation manuals to support the efforts of individuals who serve on the community’s many boards. • The board orientation manual is intended to help board members better understand their role in the organization. • The orientation manual provides information regarding the purpose of the board, general responsibilities and operating procedures, attendance, communications and open meetings law. It also serves to build a working relationship among board members that promotes ongoing support and comes to an agreement on how they will carry out their work. • The intent of the orientation manual is to get board members up to speed on the information they need to know so they can do the best job they can while serving. Page 21 of 21