Planning Commission

CITY OF DERBY PLANNING COMMISSION MINUTES - Approved August 1, 2013 6:30 PM MEMBERS PRESENT: Josh Kippenberger, Gunter Hansen, Doug Chambers, Shawn Riley, Jack Hezlep, Dennis Poteete, Herman Hicks, Pat Baer, Mitch Adams, Kathy Wills MEMBERS ABSENT: none CITY STAFF PRESENT: Cody Bird, City Planner, Marcia Hartman, Recording Secretary CONSIDERATION OF MINUTES: Approve Minutes of Thursday, July 18, 2013 Planning Commission Meeting. MOTION: Herman Hicks SECOND: Jack Hezlep VOTE: 8-0-2, Kippenberger & Riley abstained PUBLIC FORUM OPENED PUBLIC FORUM CLOSED AGENDA ITEM NO: 1 DESCRIPTION: Review the Redevelopment Project Plan for the Derby North Gateway Tax Increment Financing District GENERAL LOCATION: South of Patriot Avenue between Buckner Street and Nelson Drive, north of Wal-Mart Addition, not including Old Ranch Addition APPLICANT: City of Derby – Allison Moeding, Economic Development Director REASON FOR REQUEST: The Derby Planning Commission is responsible for reviewing redevelopment plans to ensure that projects are consistent with the Derby Comprehensive Plan. BACKGROUND INFORMATION:  Tax Increment Financing (TIF), a financing mechanism intended to stimulate economic redevelopment in blighted areas, is set forth in State law (K.S.A. 1770 et seq.) DERBY PLANNING COMMISSION MINUTES Page 1 of 7   The City of Derby has proposed the creation of a TIF District to finance street and drainage improvements in the vicinity of Nelson Drive and Patriot Avenue.  On May 28, 2013, the Derby City Council created the Derby North Gateway Redevelopment District. The District includes nearly 100 acres of land located between Nelson Drive and Buckner Street, from Patriot Avenue south to the Wal-Mart Addition. While TIF projects may include multiple project areas in the District, this project involves only one project area.  Tax increment financing is a way of funding needed improvements by capturing the increased property tax revenue that results from future development of a Menards Home Improvement Store to be located on the eastern half of the District. The Menards project is the sole improvement calculated into the TIF payback; as a result, the project will not move forward until Menards, Inc. obtains a building permit for the new store.  Improvements for the project include realignment of Nelson Drive by moving it to the east and connecting with Commerce Drive between Lowe’s and Kohl’s. The proposed configuration will include construction of a new street and traffic signal located at the intersection of Patriot Avenue and Commerce Drive, thus eliminating the existing intersection of Nelson Drive and Patriot Avenue. Drainage improvements and landscaping will also be included.  The project is expected to benefit the TIF District and the City by providing improved traffic circulation and spurring additional redevelopment in the area.  Pursuant to State law (K.S.A. 12-1772) the Planning Commission is charged with the task of reviewing the Project Plan for the Derby North Gateway Redevelopment District to determine its compatibility with the Derby Comprehensive Plan. STAFF COMMENTS: Key aspects of the Comprehensive Plan that will be addressed as part of this redevelopment project include:  The City’s Comprehensive Plan identifies the area surrounding the Derby North Gateway Redevelopment District as an area appropriate for continued commercial use.  Section 4.4 of the Comprehensive Plan sets forth a goal to develop future retail/commercial areas in a high quality manner to complement Derby’s “small town” atmosphere. Among the policies specified in this section is a goal to: Improve the visual appearance of the K-15 Business Corridor through the use of landscaping, public art, bicycle and pedestrian improvements, and targeted building revitalization efforts.  Also in Section 4.4, related to the goal to provide support for new businesses and expansion / retention of existing businesses, are policies that: DERBY PLANNING COMMISSION MINUTES Page 2 of 7  Use financial arrangements and incentives to encourage investment by businesses that bring new wealth into the community, are compatible with the c ommunity’s “small town” atmosphere, and are consistent with the Comprehensive Plan; and, Provide public assistance of various types (i.e., land assembly, financial incentives, infrastructure improvements) as needed to encourage the redevelopment of commercial areas along the K-15 corridor.  The Derby North Gateway Redevelopment District is located at a major entry point into the community. Section 6-3 refers specifically to the K-15 area as a potential community gateway, stating that: Primary gateways should identify the City of Derby as a whole. Primary gateways should be located at the entrances to the City along major roadways such as at the north and south ends of K-15 and the north and south ends of Rock Road. The major features of primary gateways should include:  A prominent feature such as large-scale public art, statuary, fountains, gardens or park-like settings;  Signage to clearly identify entrances into Derby. Brick, stone or other high-quality materials and the City logo should be incorporated into the signage to further establish the gateway; and  Landscaping to accent the surrounding corridor and prominent features. A combination of street trees, ornamental trees, shrubbery, ground covers and ornamental plantings should be used to accent and coordinate the design.” RECOMMENDATION: Move to adopt a resolution finding that the proposed Derby North Gateway Redevelopment Project Plan is consistent with the Derby Comprehensive Plan. Attachments:  Derby North Gateway Redevelopment District Project Plan  Proposed Resolution DISCUSSION: Allison Moeding, Economic Development Director – started the meeting with an explanation of the Redevelopment Project Plan for the Derby North Gateway Tax Increment Financing District. She indicated that the Derby City Council created the TIF District May 28, 2013, working with partners in the school districts and with Sedgwick DERBY PLANNING COMMISSION MINUTES Page 3 of 7 County to review the project and ensure that it made financial sense and had meaningful improvements. She specified three goals important to achieve, including safety improvements, private investments and Derby corridor enhancement. She pointed out a list of project improvements to the Commission that included realignment of Nelson Drive. Hezlep – asked how far east the realignment of Nelson Drive extended. Moeding – indicated that she wasn’t aware of the exact distance, but that it would align with Commerce Street, which is located between Lowe’s and Kohl’s. Kathy Sexton, City Manager – indicated that a traffic signal would be installed at the intersection of Commerce Drive and Patriot Avenue. Hezlep – asked if the rerouting of Nelson Drive near Meadowlark Boulevard was a part of this project. Sexton – answered that the Nelson Drive realignment will consist of three separate projects. The first project is to realign Nelson at Patriot and is included in the TIF District plan; the second project is at Nelson and Red Powell; and the third project is the intersection at Meadowlark and Nelson. The Meadowlark and Nelson intersection is currently being designed and Derby is getting a State grant to help with it. Moeding – continued with the list of improvements, including drainage and landscaping to dress up the corridor. She explained to Commissioners that Tax Increment Financing is a financial tool that cities and counties use for redevelopment in targeted areas with the intent benefitting the overall community. Property taxes are continued to be collected at an established base amount, and the additional property tax funds above the base amount is used to pay for the improvements. Projects are required to involve the revitalization of a blighted area where 50% of the property meets statutory condition and is financial feasible. Moeding ended her presentation by indicating that the purpose of the Planning Commission for reviewing the TIF project plan is to ensure that it is consistent with the City’s Comprehensive Plan. Hezlep – asked if the plan becomes null and void should Menards choose not to build. Moeding – answered yes. Moeding – provided examples of how the project meets the requirements of the Comprehensive Plan. Examples included (1) improvement to the visual appearance of the K-15 business corridor; (2) provide public assistance of various types to encourage redevelopment of commercial areas including land assembly, financial incentives, infrastructure improvements, and accessibility of properties; (3) uses financial arrangements and incentives to encourage investment by businesses to bring new wealth into the community; (4) is a primary gateway into the entrance of the city, an opportunity to add prominent features and signage. Adams – asked where the gateway would be located and where the city limit begins. Sexton – answered that it was envisioned to be on the west side of K-15, but would be determined based on the availability of land for this purpose in the future. Moeding – explained that if the Planning Commission chose to adopt a resolution stating the TIF project plan is consistent with the Comprehensive Plan, then the next steps in the process would be for Menards to submit a building permit and then the City Council could consider an ordinance to approve the project plan, hold a public hearing and then have a 60 day waiting period to issue bonds. Wills – mentioned Wichita’s practice of luring companies in with property tax abatements, but that Derby’s proposal would be funded with property tax revenue; she asked how Derby managed this prospect. Modeling – answered that the City's incentive policy does not permit retail tax abatements, or other incentives, anywhere in the City. State law prohibits us from giving DERBY PLANNING COMMISSION MINUTES Page 4 of 7 tax abatements to companies that locate in the TIF district during the time the TIF is in effect. Wills – asked if any other businesses in the proposed TIF District had expressed an interest in incentives. Moeding – answered no, not to her knowledge. Hansen – expressed concern about the creation of another intersection at Patriot and Commerce where Nelson Drive would be rerouted. Baer – indicated that the current intersection and the entrance at Lowe’s is a problematic area for traffic. Moeding – added that a traffic study conducted in 2010 reported a higher than expected accident rate due to the offset of Nelson Drive to the Lowe’s entrance as well as the close proximity of the traffic signal at K-15. Poteete – asked if the 6 additional pad sites adjacent to the Menards lot and the other parcels in the proposed district would be affected by the TIF District. Moeding – answered yes; indicating that 2013 will be the base year and current entities will continue to receive the current level of tax revenue; after the base year, it will be considered new revenue and that additional revenue will be the money that flows into the TIF funds. Menards alone will be able to pay debt service, and any other development will help pay the bonds more quickly and the TIF would be able to be closed sooner and return revenue back to the taxing entities. Riley – questioned a possible discrepancy between figures on different pages from the debt service schedule. Moeding – answered that one figure is the cost of project itself and doesn’t include the issuance costs or bonds or assorted tax fees. The other figure is projected debt service on the bonds. Sexton – confirmed that the figures are estimates from the financial planner. Notes in the plan indicate that the amount and timing of the financing may differ from the terms provided in the plan, but will be calculated into the methodology. Riley – asked what would occur if the TIF paid off before the 20 year timeline. Moeding – answered that the City Council would need to take action to close early if the revenues came in early. Riley – asked if the funds could only be used in that district. Moeding – answered yes. Baer – asked for clarification that the Planning Commission’s responsibility was to review the project to ensure it was in line with the Comprehensive Plan, and not to examine every detail and the costs. Bird – answered that the Planning Commission’s role is to find whether or not the proposed plan is in conformance with the City’s Comprehensive Plan. He said that questions are welcomed and the Planning Commission brings up goods points that need to be considered moving forward. Baer – expressed his appreciation for the outline identifying how the TIF project plan relates to the goals of the Comprehensive Plan. He mentioned that Rock Road has had a lot of growth and attention, but that K-15 has much potential and is important to address the concerns of the area. Hezlep – indicated the plan was on the right path. MOTION: Jack Hezlep SECOND: Doug Chambers DERBY PLANNING COMMISSION MINUTES Page 5 of 7 VOTE: 10-0-0 AGENDA ITEM NO: 2 DESCRIPTION: Parks Planning Update (Non-Action Item) DISCUSSION: Kathy Sexton, City Manager – addressed the Planning Commission by saying she was excited to hear that members wanted to know more about Derby parks after the previous meeting’s discussion of the CIP. She began by providing a history and update to the development of parks, starting with 2008’s master park plan. Land acquisition was important to the Council at that time because Derby did not own any land as a city for future public services. Ideas from the master plan incorporated outdoor amenities, shared facilities and cooperative structures that many entities could utilize together to reduce costs, such as shared land for libraries and schools or parks and school playgrounds. Many uses were identified so that the community could maximize cooperative aspects of land sharing. Sexton – briefed the members on park improvements and how those changes have made a positive impact on the community. Many improvements included simple changes such as cleaning up overgrown bushes to open up bike paths and moving statues which were hidden or out of site to more aesthetic areas. She continued to share the City’s vision for new parks, including the Warren Riverview Park at the former Public Works yard location, indicating that Ray and Virginia Warren donated $50,000 to develop the park. She also explained that the new Madison Avenue Central Park is proposed to include splash pads, walking paths, bridges, venues and a glass building with moveable partitions. A video highlighting the many aspects of the park was shown. Planning Commission – asked if the video was available for viewing. Sexton – answered yes, it is currently located on the Derby website. Sexton – indicated that Derby citizens will vote on the Derby Difference Sales Tax September 25 through October 8, 2013. Adams – asked how the sales tax vote was being advertised. Sexton – answered that citizens would be notified by a direct mail piece in the Derby Horizon, a water bill insert and signs, and that there was an advocacy group for a “Yes” vote. Wills – commented on the number of geese in High Park and the mess that they leave. Sexton – said that the City is trying strategies to curb geese migration and attraction to the area. Baer – expressed his appreciation for the presentation. Poteet – expressed his appreciation to Kathy Sexton for her enthusiasm and future vision for the City of Derby. DERBY PLANNING COMMISSION MINUTES Page 6 of 7  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] AGENDA ITEM NO: 3 DESCRIPTION: Televising Meetings (Non-Action Item) DISCUSSION: Sexton – introduced the idea of televising Planning Commission meetings. She indicated that the City Council meetings are currently videotaped and televised on the Derby website and the City’s Channel 7. She explained that the benefit of streaming footage from the website was the ability to select specific topics from the meetings, rather than view the entire meeting. The City of Derby currently has the software, as part of the original purchase, which could also be utilized for Planning Commission meetings. Hicks – asked if there was any additional charge for airing the video. Sexton – answered no, the City owns Channel 7. Hezlep – asked if there is a demand for it? Sexton – explained that it is a tool to provide transparency and to offer a more convenient method for individuals to know about information discussed at City meetings. COMMUNICATIONS: Baer – asked about upcoming agenda items. Bird – answered that an application for vacation of a utility easement was submitted and tentatively scheduled for the August 15, 2013 meeting. MOTION TO ADJOURN: Jack Hezlep SECOND: Gunter Hansen VOTE: Passed 10-0-0 Meeting adjourned at 8:00pm Marcia Hartman Pat Baer Recording Secretary Chairman DERBY PLANNING COMMISSION MINUTES Page 7 of 7