Redevelopment Agency

CITY OF HENDERSON REDEVELOPMENT AGENCY MINUTES REGULAR MEETING December 17, 2013 I. CALL TO ORDER Chairman Hafen called the Redevelopment Agency Meeting to order at 6:21 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 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, Vice-Chairman 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 Tracy Foutz, Asst. Director of Community Dev. and Services Richard Derrick, Chief Financial Officer Jonathon Nunes, Council and Commission Services Coordinator Tedie Jackson, Minutes Clerk III. PUBLIC COMMENT No public comments were presented. Redevelopment Agency Meeting Page 2 of 7 December 17, 2013 – Minutes IV. ACCEPTANCE OF AGENDA (Motion) Member Gerri Schroder 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. V. ITEMS OF BUSINESS RDA-1 MINUTES REDEVELOPMENT AGENCY MEETING OF NOVEMBER 19, 2013 ECONOMIC DEVELOPMENT/REDEVELOPMENT City of Henderson Redevelopment Agency Meeting Minutes of November 19, 2013. (Motion) Member Gerri Schroder moved to adopt the minutes of the November 19, 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 ORDINANCE NO. 3086 AMENDING ORDINANCE NO. 2432, REDEVELOPMENT PLAN AMENDMENT EASTSIDE REDEVELOPMENT AREA RESET ECONOMIC DEVELOPMENT/REDEVELOPMENT Jacob Snow, City Manager, introduced and read this Ordinance by title: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HENDERSON, NEVADA, TO RESET THE BASE YEAR FOR THE EASTSIDE REDEVELOPENT AREA AT THE ASSESSMENT ROLL LAST EQUALIZED BEFORE THE DATE OF ADOPTION, AND AMENDING THE EASTSIDE REDEVELOPMENT PLAN, JOINED AND ADOPTED BY THE CITY OF HENDERSON REDEVELOPMENT AGENCY. Redevelopment Agency Meeting Page 3 of 7 December 17, 2013 – Minutes Lisa Sich, Special Projects Accountant, said a legislative amendment was approved at the last State of Nevada Legislative session to allow areas that are ten percent or more below their original assessed base year to reset. Staff is recommending approval of the base year reset for the Eastside area. Member March said this is a positive move for the Redevelopment Agency. (Motion) Member Debra March moved to adopt Ordinance No. 3086. 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-3 OWNER PARTICIPATION AGREEMENT UNION VILLAGE, LLC PROJECT ON CORNER OF US 93/95 AND GALLERIA DRIVE ECONOMIC DEVELOPMENT/REDEVELOPMENT Owner Participation Agreement by and between Union Village, LLC and the City of Henderson Redevelopment Agency for a project to be located on approximately 120.53 net acres at the northeast corner of US 93/95 and Galleria Drive. Lisa Sich, Special Projects Accountant, presented a summary of this item and noted that this project is estimated to bring in $158 million in tax increment dollars. She said the estimated cost of the project is over $1 billion; therefore, the Agency has negotiated for the developer to receive $80.2 million in tax increment reimbursements for infrastructure it completes. She explained that as items are completed and certified, they would be added to a note that will accrue interest at six percent, and that interest will never exceed $14 million in total. Ms. Sich stated that per the terms, they will receive reimbursements on the note every six months semi-annually. She said they would receive 90 percent of the tax increment related specifically to their project for the first ten years and then 80 percent thereafter. Member March said this is a great step in the direction of diversifying the economy and meeting healthcare needs for the community and Southern Nevada. (Motion) Member Debra March moved to approve the Owner Participation Agreement by and between Union Village, LLC and the City of Henderson Redevelopment Agency for a project to be located on approximately 120.53 net acres at the northeast corner of US 93/95 and Galleria Drive. Redevelopment Agency Meeting Page 4 of 7 December 17, 2013 – Minutes 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 OWNER PARTICIPATION AGREEMENT VALLEY HEALTH SYSTEM LLC PROJECT ON CORNER OF US 93/95 AND GALLERIA DRIVE ECONOMIC DEVELOPMENT/REDEVELOPMENT Owner Participation Agreement by and between Valley Health System LLC and the City of Henderson Redevelopment Agency for a project to be located on approximately 30.19 net acres at the northeast corner of US 93/95 and Galleria Drive. Mayor Hafen disclosed that his daughter-in-law works for the Valley Health System. Lisa Sich, Special Projects Accountant, presented a summary of this item and noted that the estimated project cost is $150 million. She said the Agency negotiated with the developer to receive $33 million to be paid from tax increment for items on the improvement list. She explained that as items are completed and certified, they would be added to a note that will accrue interest at six percent. She said it can accrue interest up to $6.5 million. She said they would receive the 90 percent of the tax increment related specifically to their project for the first ten years and then 80 percent thereafter. She pointed out that in both of these agreements, at the end of the life of the redevelopment area, any balance due on the note will be forgiven. Ms. Sich stated that there has been a change to the recommended motion to read as follows: Approve the Owner Participation Agreement (OPA) by and between Valley Health System LLC and the City of Henderson Redevelopment Agency for a project to be located on approximately 30.19 net acres at the northwest corner of US 93/95 and Galleria Drive, subject to the delivery, prior to delivery of the Owner Participation Agreement of a completion and cost overrun guaranty in favor of the Redevelopment Agency or other assurances with respect to completion of the hospital, in a form approved by the Agency’s Executive Director and General counsel. Rory Robinson, Assistant City Attorney, stated that since the posting of the agenda, the following changes have been made to the OPA. In Section 1.1, the definition of project now reads: Project meets the development projects identified on the master list. In Section 3.1.2, the last sentence has been stricken. Redevelopment Agency Meeting Page 5 of 7 December 17, 2013 – Minutes In Section 6.2, the last sentence has been revised to provide that the discrete portion of the eligible improvements is any portion of the eligible improvements that is listed as one or more separate items on the master list provided that in connection with the approval process as set forth in the agreement, the Agency, in consultation with the participant, may permit participant to submit a request for reimbursement for a lesser portion of eligible improvements. Ms. Robinson noted that in Exhibit C, Item seven, Site Prep Work, which was in the amount of $1.5 million, has been deleted from that schedule and is no longer a scheduled improvement. Josh Reid, City Attorney, commented that these are not material changes. Member Bateman complimented staff for their hard work. Member Schroder noted that the revised motion should be northeast corner instead of northwest corner. Responding to a comment by Chairman Hafen that the amended motion reads strange, Ms. Robinson explained that the portion “subject to the delivery” is the delivery of the guaranty or other assurances; and “prior to the delivery of the OPA” means that is a condition to the City delivering the OPA. Jacob Snow, City Manager, recognized Rory Robinson, Assistant City Attorney; Michelle Romero, Redevelopment Manager; Lisa Sich, Special Projects Accountant; and Bristol Ellington, Assistant City Manager and project manager for their efforts on this project. (Motion) Member Sam Bateman moved to approve the Owner Participation Agreement by and between Valley Health System LLC and the City of Henderson Redevelopment Agency for a project to be located on approximately 30.19 net acres at the northeast corner of US 93/95 and Galleria Drive, subject to the delivery, prior to delivery of the Owner Participation Agreement of a completion and cost overrun guaranty in favor of the Redevelopment Agency or other assurances with respect to completion of the hospital, in a form approved by the Agency’s Executive Director and General counsel. 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 6 of 7 December 17, 2013 – Minutes RDA-5 REDEVELOPMENT AGENCY ANNUAL AUDIT FISCAL YEAR 2012 -2013 ECONOMIC DEVELOPMENT/REDEVELOPMENT Submission of Redevelopment Agency Annual Audited Financial Statements - Fiscal Year 2012 - 2013, and Required Communications Letter. Lisa Sich, Special Projects Accountant, reported that the audit received an unqualified opinion and staff recommends approval. (Motion) Member Sam Bateman moved to accept the Redevelopment Agency Annual Audited Financial Statements for Fiscal Year 2012 - 2013, and required communications letter. 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-6 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. Lisa Sich, Special Projects Accountant, reported that the exterior improvements have been completed for 19 South Water Street and the City Lights Gallery improved their building through a Lowe’s grant. She also noted that improvements for 29 West Basic Road are complete and have been inspected as part of the residential improvement program. Member March commented on a nice article in the newspaper today about the Redevelopment Agency’s efforts on Water Street. She said it is exciting to see that transformation occurring and thanked staff for their hard work. (Motion) Member Debra March moved to accept the Projects Update Report. 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 7 of 7 December 17, 2013 – Minutes VI. CHAIRMAN\MEMBER COMMENTS There were no Chairman or member comments presented. VII. PUBLIC COMMENT There were no public comments presented. VIII. ADJOURNMENT There being no further business to come before the Agency, Chairman Hafen, in concurrence with the Council, adjourned the Redevelopment Meeting at 6:38 p.m. PASSED AND ADOPTED THIS 21st DAY OF JANUARY, 2014. ______________________ Andy Hafen Chairman ATTEST: _________________________ Sabrina Mercadante, MMC Secretary