Redevelopment Agency

CITY OF HENDERSON REDEVELOPMENT AGENCY MINUTES REGULAR MEETING February 19, 2013 I. CALL TO ORDER Chairman Andy Hafen called the Redevelopment Agency Meeting to order at 6:35 p.m., in the City Council Chambers, City Hall, 240 Water Street, Henderson, Nevada 89015. II. CONFIRMATION OF POSTING AND ROLL CALL The Secretary confirmed the Redevelopment Agency Meeting had been noticed in compliance with the Open Meeting Law by posting the Agenda three working days prior to the meeting at City Hall, the Multigenerational Center, the Whitney Ranch Recreation Center, and Fire Station No. 86, and by mailing a copy of the Agenda to everyone appearing thereon on the Agenda Master Mailing List. Present: Andy Hafen, Chairman Sam Bateman, Member Debra March, Member John F. Marz, Member Gerri Schroder, Member Absent: None Officers: Jacob Snow, Executive Director Josh Reid, General Counsel Sabrina Mercadante, Secretary Absent: None Staff: Robert Murnane, Public Works Director Stephanie Garcia-Vause, Director of Community Development and Services Richard Derrick, Finance Director Jonathon Nunes, Council and Commission Services Coordinator Tedie Jackson, Minutes Clerk Redevelopment Agency Meeting Page 2 of 6 February 19, 2013 – Minutes III. ACCEPTANCE OF AGENDA (Motion) Member Debra March moved to accept the agenda as presented. The roll call vote favoring passage was: Those voting aye: Sam Bateman, Andy Hafen, Debra March, John F. Marz, and Gerri Schroder. Those voting nay: None. Those absent: None. Those abstaining: None. Chairman Hafen declared the motion carried. IV. ITEMS OF BUSINESS RDA-1 MINUTES REDEVELOPMENT AGENCY MEETING OF JANUARY 15, 2013 ECONOMIC DEVELOPMENT/REDEVELOPMENT City of Henderson Redevelopment Agency Meeting Minutes of January 15, 2013. (Motion) Member Debra March moved to adopt the minutes of the January 15, 2013, City of Henderson Redevelopment Agency Meeting. The roll call vote favoring passage was: Those voting aye: Sam Bateman, Andy Hafen, Debra March, John F. Marz, and Gerri Schroder. Those voting nay: None. Those absent: None. Those abstaining: None. Chairman Hafen declared the motion carried. RDA-2 RESOLUTION SALE OF 203 SOUTH WATER STREET ECONOMIC DEVELOPMENT/REDEVELOPMENT Resolution No. 80 was introduced and read by title: A RESOLUTION OF THE CITY OF HENDERSON REDEVELOPMENT AGENCY, CLARK COUNTY, NEVADA EXPRESSING ITS INTENT TO SELL THE BUILDING LOCATED AT 203 SOUTH WATER STREET TO AGUA STREET GAMING, LLC. Redevelopment Agency Meeting Page 3 of 6 February 19, 2013 – Minutes Michelle Romero, Redevelopment Manager, presented a summary of this item and stated staff recommends approving an offer from Agua Street Gaming, LLC, to purchase the property for $510,000.00. She noted that the applicant anticipates paying approximately $165,000.00 for needed repairs and renovations to the building. Ms. Romero stated that the applicant is proposing to open an urban lounge on the first floor, and the second and third floors of the building will continue to be leased by the City at the current lease rates. She said the urban lounge will create 20 new jobs to the downtown area. She commented that the buyers successfully operate an existing business in the downtown area. Ms. Romero pointed out that staff received confirmation from the Clark County Board of Equalization that selling the property below appraised value would not negatively impact surrounding property assessed values. She reviewed the terms should this land sale be approved by the Council. Timothy Brooks, 984 Hunters Run Drive; and Doug Beavers, 2519 Finlarig Street, proposed buyers, stated that they hope this business will reinvigorate the downtown area. Mr. Brooks explained that he and his brother currently own the Emerald Island Casino and employ approximately 110 employees. He said they are very active and committed to the downtown community. Mr. Brooks noted that he is the president of the Water Street Business Association, a member of the Henderson Chamber of Commerce Executive Board of Directors, and he serves on the Cultural Arts and Tourism Board of Directors. Tom Foster, 1020 Island Falls Avenue, stated that he has the utmost respect for Mr. Brooks and works with him as a member of the Water Street Business Association. Mr. Foster disclosed that he is a member of the Henderson Redevelopment Advisory Commission (RAC); however, when this item was heard by the RAC, he abstained from discussion and voting on this item because he owns a building downtown. Mr. Foster stated that the City and Redevelopment Agency has invested approximately $3.9 million in this building since it was built. He believes that selling it for $510,000.00 is too low and not good stewardship of taxpayers’ dollars. He distributed a handout outlining his concerns regarding the appraisals and that selling at this price will decrease the value of all Water Street District properties. Mr. Foster suggested the following options: 1) keeping the building until the market improves since it is paying for itself with below-market rents; 2) sell at full-assessed value without the deductions for below-market leases or improvement costs; 3) pursue additional offers through a commercial real estate broker; and 4) sell at full-assessed value to the current interested buyer and partially reimburse the buyer for improvements using a tenant improvement loan or grant. Redevelopment Agency Meeting Page 4 of 6 February 19, 2013 – Minutes Rance Spurlock, 22 West Pacific Street, voiced his support for the sale of the Pinnacle Building and believes it will benefit the downtown area. He noted that he does not think the sale of this property at the proposed rate will affect property values. Ms. Romero stated that the City Attorney's office determined that the reduction in property value of $165,000.00 is based on needs to repair the building. She noted that this project did not fall within normal developer criteria for having to go through the National Development Counsel because the applicant is going through a private institution for financing. Member March commented that residential and commercial values have decreased due to the economic downturn. She believes the value is comparable to the Meridian building since the Meridian property includes parking. She noted that one of the benefits of selling this building is property tax revenue coming to the community. Member March stated that this project is a good start for the new urban lounge ordinance that was recently put in place to encourage investment in the downtown area. Member Schroder thanked Mr. Foster for meeting with her to explain his concerns. She said no one knows when the market will improve, but she believes this project will enhance downtown Henderson. Chairman Hafen said he understands the concerns Mr. Foster raised, but he thinks approving this project will help to bring activity and life to the downtown area. He thinks a viable business will help to increase property values downtown. He asked if the assessed valuation is different than what the actual sales price would be, and that the tax increment will be based on that assess valuation. Ms. Romero confirmed that tax increment is always based on assessed valuation. She said the Board of Equalization does not look at sales price or appraised value; they use a region-wide basis and a formula based on previous years assessed value. Responding to a question by Chairman Hafen as to what the property tax would be if the property was not government owned, Ms. Romero said she believes it would be approximately $7,000.00 per year. (Motion) Member Sam Bateman moved to adopt Resolution No. 80. The roll call vote favoring passage was: Those voting aye: Sam Bateman, Andy Hafen, Debra March, John F. Marz, and Gerri Schroder. Those voting nay: None. Those absent: None. Those abstaining: None. Chairman Hafen declared the motion carried. Redevelopment Agency Meeting Page 5 of 6 February 19, 2013 – Minutes RDA-3 RESOLUTION AMENDMENTS TO T-13 LID CORNERSTONE PROMISSORY AND SHORTFALL NOTES ECONOMIC DEVELOPMENT/REDEVELOPMENT Resolution No. 81 was introduced and read by title: A RESOLUTION OF THE CITY OF HENDERSON REDEVELOPMENT AGENCY APPROVING AMENDMENTS TO THE PROMISSORY NOTE, AND SHORTFALL NOTE, FROM THE CITY OF HENDERSON REDEVELOPMENT AGENCY FOR THE BENEFIT OF THE CITY OF HENDERSON, NEVADA, AS ASSIGNEE OF CORNERSTONE PARTNERS I, L.L.C., IN CONNECTION WITH THE ASSESSMENTS LEVIED IN THE CITY OF HENDERSON, NEVADA, LOCAL IMPROVEMENT DISTRICT NO. T-13 (CORNERSTONE). Michelle Romero, Redevelopment Manager, reported that the City has been working to refinance its existing T-13 LID bonds at Cornerstone. She distributed a document entitled Amended and Restated Promissory Note and stated that the principal amount of the amended and restated promissory note is $3.780 million. She referred to the first paragraph, end of the sentence, and noted that it should say “in favor of the City of Henderson, Nevada as assignee of Cornerstone Partners.” Ms. Romero noted that this saves the Agency approximately $677,000.00 and saves the residents approximately $650,000.00. (Motion) Member Sam Bateman moved to adopt Resolution No. 81. The roll call vote favoring passage was: Those voting aye: Sam Bateman, Andy Hafen, Debra March, John F. Marz, and Gerri Schroder. Those voting nay: None. Those absent: None. Those abstaining: None. Chairman Hafen declared the motion carried. RDA-4 PROJECTS UPDATE REPORT ECONOMIC DEVELOPMENT/REDEVELOPMENT Report on new and ongoing projects, events, and business activities within the Cornerstone, Downtown, Eastside, Tuscany, and Lakemoor Canyon redevelopment areas and the administration thereof. No action was taken on this item. Redevelopment Agency Meeting Page 6 of 6 February 19, 2013 – Minutes V. PUBLIC COMMENT There were no public comments presented. VI. CHAIRMAN\MEMBER COMMENTS There were no Chairman or member comments presented. VII. ADJOURNMENT There being no further business to come before the Redevelopment Agency, Chairman Hafen, in concurrence with the Agency, adjourned the Redevelopment Agency Meeting at 7:08 p.m. PASSED AND ADOPTED THIS 19th DAY OF March, 2013. ______________________ Andy Hafen Chairman ATTEST: ________________________ Sabrina Mercadante, MMC Secretary