Board of Commissioners Meetings

City of Henderson, Kentucky NOTICE OF WORK SESSION FOR TUESDAY, NOVEMBER 21, 2017 November 17, 2017 Commissioner Patti Bugg Commissioner Robert N. Pruitt Sr. Commissioner Bradley S. Staton Commissioner Austin P. Vowels Dear Board Members: The regular work session is scheduled for 5:30 p.m. on Tuesday, November 21, 2017, in the 3rd Floor Assembly Room of the Municipal Center. The items on the agenda for review are as follows: 1. Body Camera Presentation 2. Discussion Regarding Preparation of the Henderson Industrial Park for Sale of Industrial Development Sites Respectfully, Steve Austin, Mayor A copy of the foregoing notice received and service thereof waived this 21st day of November, 2017. Commissioner Patti Bugg Commissioner Robert N. Pruitt Sr. Commissioner Bradley S. Staton Commissioner Austin P. Vowels  City Commission Memorandum 17-246 November 17, 2017 TO: Mayor Steve Austin and the Board of Commissioners FROM: Russell R. Sights, City Manager jk1 SUBJECT: Work Session Agenda The regular work session is scheduled for 5:30 p.m. on Tuesday, November 21, 2017 in the third floor Assembly Room of the Municipal Center, 222 First Street. The purpose of this meeting is for the following: Body Camera Presentation Major Jermaine Poynter will be here to give a presentation on Body Cameras. The Power Point presentation will include the findings of the Body Cam Exploratory Committee, vendors tested, the pros and cons as they relate to various cameras, and the Committee's recommendations. Henderson Industrial Park A copy of a cover letter and report that were submitted to the board on August 31, 201 7 are attached. There are recommendations at the end of the report that will be discussed by the Board concerning the sale of industrial development sites in the Henderson Industrial Park located at the end of Borax Drive. Steve Austin, Mayor Commissioners: Patti Bugg Robert N. Pruitt Sr. Bradley 5. Staton Austin P. Vowels m'.be <!itp of r&,enberson P.O. Box 716 Henderson, Kentucky 42419-0716 Russell R. Sights, City Manager Dawn S. Kelsey, Gty Attorney HtNDE:RSON Maree Collins, Gty Clerk y,A11,J:~11/I.K<J1 .; Donna Stinnett, Public Information Officer August 31, 2017 KENTUCKY HOM[ Mayor Steve Austin and The Board of Commissioners City of Henderson P.O. Box 716 Henderson, KY 42419-0716 Board Members: Enclosed is the requested report and recommendations to establish the process and procedures to be followed for the sale of industrial development sites in the proposed Henderson Industrial Park at the end of Borax Drive. The City of Henderson is fortunate to have this real estate available for future industrial development because it is one of the last sites of this size available in an area served by all city owned utilities. This report contains a set of recommendations to be considered by the Board of Commissioners at a future meeting, but copies of the report are being presented to you now in order for me to meet the deadline proposed by Mayor Austin. I will be pleased to discuss this report as presented at your convenience. Thank you, ~Russell R. Sights City Manager HeridersOii Discover your nature.  HENDERSON INDUSTRIAL PARK REPORT AND RECOMMENDATIONS OBJECTIVE: To define the process and procedures to be followed in order to prepare the Henderson Industrial Park (hereinafter referred to as "Park") for the sale of industrial development sites. INTRODUCTION: The City of Henderson (hereinafter referred to as "City") owns 126.375 acres, more or less, at the end of Borax Drive. This property was purchased by the City for a future industrial park. Approximately 70.8 acres are designated for sale as prime industrial land. The City has previously engaged AECOM, a planning and consulting firm, to prepare a Master Plan for this property. In the plan, there are several options presented for subdividing the land for future sale. A significant part of this report to the Board of Commissioners (hereinafter referred to as the "Board") has been taken from that plan. AECOM proposed four distinctly different possible site plans for this property ranging in size from 3.1 acres to 33.1 acres. In addition, the layouts were presented in such a way that two or more proposed lots could be combined into one lot that could conceivably allow two lots of approximately 35 acres each, four lots of 17.5 acres each, etc., so that almost any combination of acreages could be achieved based on the requirements of industrial prospects. The main purpose of this report and recommendations is to provide the Board a prioritized list of actions that should be undertaken to begin the development of the Park in preparation for selling industrial sites. PROCEDURE: At the beginning of the preparation of this report, meetings and discussions were held with the KYNDLE staff members who work in industrial development to review the Master Plan for the Park and to discuss the first and second phases for this activity. The first phase is to identify what steps are necessary to prepare the site to meet the shovel ready requirements of the Commonwealth of Kentucky. The second phase is to begin marketing the property for sale. A brief discussion took place on whether one or two build ready sites should be considered. The conclusion was that the Park should be prepared to be shovel ready, but none of the sites need to be build ready. The main reason for this recommendation is that a site classification can become build ready most all of the time in a quick manner that could be prepared for a proposed industry before the site, or sites, would actually need to be build ready. In addition, there is some risk that if the City did a build ready site, it would not be acceptable to a potential investor and the investment might be lost. A second meeting was held with utility management staff from Henderson Municipal Power and Light (HMPL), the Water Utility (HWU), and the Natural Gas Department (NGO) along with staff members from the Engineering and Public Works Departments to determine what work should be completed to have all utilities in place to the property line of the project and whether extension of utilities into the site were advisable prior to selling the first site. Since final layout of roadways and utilities has not been done and probably will not be done until the first lot is purchased, there was no serious discussion on extending proposed utility infrastructure into the property, except that HMPL might choose to place the electrical service under the Vectren lines that cross the property. CURRENT STATUS: HMPL will extend the necessary electrical infrastructure to the property line by December 31, 2017, or as soon as the revised memorandum of understanding (MOU) is approved by the Kentucky Transportation Cabinet (KTC) and the Federal Highway Administration (FHWA). No work will be allowed on any phase of the project with remaining funds until the revised MOU is approved. At a later date an extension of service will also be done to install electrical service under the existing Vectren lines that cross the site. The HMPL General Manager is requesting $190,000 in MOU funding to extend service to the property line. An additional $180,000 to extend the service under the Vectren facility will be needed at a later date. MOU funding will not be available for this expense or for extending additional electrical facilities and service into the Park. HWU currently has a 10-inch water line and a 10-inch sanitary sewer line to the property line. This work has already been completed and no reimbursement with MOU funding is allowed. MOU funding would not be available for extending service into the Park. The NGO has a four-inch line running from the rear of the Henderson County Detention Facility to the Park property line. That installed line, though, is fed by a two-inch line from U.S. 60 West. If a four-inch line is required to serve a particular industry on site, the line can be installed before it is needed according to Owen Reeves, Gas System Manager. No reimbursement for this work would be allowed. MOU funding would not be available for extending service into the Park. In all three situations, funding for extension of utilities into the site would need to be provided by the General Fund or by the individual utilities. The existing environmental work is more than two years old and must be updated before any real estate may be sold. The cost estimate for this work is estimated to be approximately $50,000. It is also recommended that initial design work for roadway improvements proposed for the site should be undertaken at an estimated additional cost of $50,000. This work will be done by a consultant or engineering firm chosen by KTC. This would allow the actual construction of road improvements to be completed efficiently for the first client actually purchasing real estate in the Park. However, for the interim period it is recommended that no construction of an improved roadway be done and that initially there only be a rock surfaced entrance into the Park approximately 500 feet in length with a turnaround at the end. It is recognized that a new improved entrance would be visually appealing, but could be a very expensive component of the project that may not be desirable based on the proposed plans of the first client actually purchasing property. This is a recommendation of the KYNDLE professionals. PROJECT BUDGET: (Remaining MOU Funding) Balance of MOU Funding $484,562 Recommended Expenditures: HMPL Facility Extension 190,000 Environmental Plan Update 50,000 Road Entrance Design 44,562 Proposed Roadway Construction 200,000 TOTAL $484,562 FUTURE PROJECT BUDGET: (On Site) Primary Roadways: Pavement and Grading $1,480,000 Storm Sewers 130,000 Professional Services 230,000 Water Service Improvements 190,000 Sanitary Sewer Improvements 140,000 Natural Gas Improvements 105,000 Electrical Service Improvements 360,000 Telecommunications Improvements 40,000 TOTAL $2,675,000 There are two primary funding sources for the projects outlined above. The first is the revenue from the sale of the real estate and the balance should be appropriated from the General Fund of the City. The information provided above shows what is needed for the marketing of sites in the Park and the future expenses that would be anticipated to make all the improvements and to place the infrastructure inside the perimeter of the Park. The possibility of a Phase Three and Phase Four in the future are discussed in the AECOM plan and will not be addressed any further at this time. Sufficient information has been provided in that report for future decisions to be made at a later time. RECOMMMENDATIONS: 1. The Board will have an updated MOU on a future meeting agenda. We have forwarded a draft document to KTC and FHWA for preliminary review before formal approval can be given by the City. No work of any kind or type can be undertaken and funds spent until the MOU is fully executed by all parties. 2. When the MOU is final, the City must expend all remaining funds authorized in the original grant contract by June 30, 2018, as proposed in the remaining MOU funding list shown above. 3. The Board should consider whether all marketing of the new sites should be done by KYNDLE and City staff, or whether an outside marketing/real estate firm should be considered to promote and secure real estate offers. 4. A set of Restrictive Covenants should be prepared for the real estate lots and approved by the Board. After approval, the covenants would be placed in the Henderson County Clerk's official records and would be recorded with the original deed for the property. 5. The Board should decide on the official name for the Park. The City Manager and City Attorney would be charged with recommending two or more possible names for consideration. 6. The Mayor and City Manager should be given joint definitive authority to negotiate the sale of any and all lots. Price ranges should be identified and incentives agreed to in advance by the Board to allow any and all property sale negotiations to go as smoothly and professionally as possible. 7. The Mayor and City Manager should also be authorized to negotiate any details relating to the sale of any of this property as long as the parameters outlined in Section Six (6) above are met. The Mayor and/or City Manager should make every effort to keep the Board informed on any prospective client considering purchase of any property in the Park, subject to any confidentiality agreements that are executed in writing or requested verbally by a potential purchaser or his/her/their agent or representative.