City Council

Minutes of Joint Session of Redevelopment Agency of Ogden City, Utah, September 8, 2015 Page Minutes of the Joint Study Session of the Ogden City Redevelopment Agency, also acting as the City Council, held on Tuesday, September 8, 2015 at 5:30 p.m., in the Council Work Room on the third floor of the Municipal Building, 2549 Washington Boulevard, Ogden City, Weber County, Utah. Present: Chair Richard A. Hyer Vice Chair Marcia L. White Board members Bart E. Blair Neil K. Garner Caitlin K. Gochnour Doug Stephens Board Administrator Bill Cook Board Deputy Administrator Janene Eller-Smith Board Policy Analyst Glenn Symes Communications Manager Amy Sue Mabey Excused: Board member Amy L. Wicks Also present: Chief Administrative Officer Mark Johnson Management Services Director David G. Buxton Comptroller Lisa Stout Community and Economic Development Director Tom Christopulos Community and Economic Development Deputy Manager Brandon Cooper City Recorder Tracy Hansen The purpose of the Joint Study Session included presentations and discussions regarding: an agenda review for the Redevelopment Agency meeting which begins at 6:00 p.m., a proposed FY2016 City Budget Amendment, a Redevelopment Agency Update, and Board and Council business. Agenda Review Board Administrator Cook and other members of Board staff briefly reviewed the agenda for the Redevelopment Agency (RDA) meeting scheduled to begin at 6:00 p.m. Proposed FY2016 City Budget Amendment Board Deputy Administrator Eller-Smith explained Administration is proposing an increase to the Fiscal Year (FY) 2016 budget of $1,072,954 by recognizing and appropriating various grant funds to the General Fund and Medical Services Fund. The proposed amendment also transfers funds within the Capital Improvement Plan (CIP) Fund for Percent for Arts and various CIP projects. Finally, the proposal recognizes and appropriates funds from the Water Utility Fund balance to CIP Project WU015 to cover additional costs needed for pipe replacement projects. Comptroller Stout provided additional detail regarding the proposal. She indicated certain grants and donations are anticipated or have been received by the City and include a technology grant to the Justice Court from the State to pay for scanning equipment. A County funded Recreation, Arts, Museums, Parks (RAMP) grant and an Arby’s grant have been awarded to benefit the Marshall White Center. The Ogden Pickleball Association intends to donate $5,000 to assist with the cost of lighting at the pickleball courts. In conjunction with this budget consideration City Administration proposes a reduction of $23,145 to project PK097, for tennis court improvements, and appropriating that budget to project RM027, recreation facilities improvements, to cover the cost of striping and adding lights to tennis courts to allow these courts to have a dual use as tennis and pickleball courts. A federal grant has been awarded and is being recognized in the Medical Services Fund to help cover the cost of several new radios. Board member Gochnour referred to project PK097 and asked if all tennis courts listed in the scope of that project have been resurfaced. Ms. Stout replied she is uncertain. Board member Gochnour indicated she would prefer that all resurfacing be completed before any money is transferred from that project to the pickleball project. Ms. Eller-Smith stated it is her understanding that all resurfacing projects were completed and that money is available due to the City securing better than expected pricing for the project. Board member Blair reported the Monroe Park tennis court has not yet been resurfaced. Ms. Stout reviewed additional actions included in the budget proposal, including recognizing transfers for Percent for Arts related to Enterprise Fund CIP projects. The transfer appropriation was recognized in the Enterprise Funds FY2016 adopted budget, but not included as a transfer in and appropriation to the CIP Fund; this action will correct that oversight. Two additional CIP projects are proposed to be funded in this action. An appropriation of $40,000 to fund project CD120, a wayfinding sign in The Junction Plaza to support Ogden’s relationship with its sister city, Hof, Germany. This project will be funded using Percent for Arts money. Also, an appropriation in the Water Utility Fund of $833,250 to CIP project WU015 pipe replacement/maintenance in anticipation of additional construction costs during FY2016. This project is more commonly referred to as the Trackline Project. She noted that she met with Administration to review the guidelines relative to days of cash on hand for the Water Utility Fund and those guidelines will still be adhered to with the increased appropriation for this project. There is a chance that City Administration may receive additional Economic Development Administration (EDA) funding, but in order for that to occur the project must be underway. Vice Chair White asked the initial budget amount for project WU015. Ms. Stout answered $2.9 million; made up by $2.1 in EDA funding, $325,000 from the Department of Housing and Urban Development (HUD), and $400,000 from the Water Utility Fund. Community and Economic Development Deputy Manager Cooper noted that the engineer’s estimate did not include soft costs associated with soil and environmental remediation as the project travels through the rail yard in the area. He added that, since the initial design phase of the project, costs have increased and that has led to an overall increase for the project. Board member Gochnour asked about the likelihood of the City receiving additional EDA funding for the project. Mr. Cooper replied it is difficult to predict the likelihood of being awarded such funding and to propose a budget adjustment based upon a future EDA award would be very problematic. He added; however, that the EDA is very interested in seeing the project succeed and he feels the City will be successful in receiving approval for a change order for the project. The Board and Mr. Cooper engaged in a brief discussion regarding the scope of the Trackline Project. The Board requested a breakdown of how the additional project funding will be utilized. Ms. Stout stated she will provide that information as well as additional information regarding the tennis court resurfacing projects. Board Administrator Cook also asked Ms. Stout to provide the Board with the number of radios that will be purchased with the grant funding being allocated in the Medical Services Fund. Ms. Eller-Smith offered clarification on the Hof, Germany directional sign. It is not technically a CIP project and Administration is recommending that it be funded while work is being done to redefine Percent for Arts policies. She added the project will go to the Planning Commission for site plan review and ultimate approval by the Mayor. The only role the Council plays in the project is to appropriate the funding. Board member Gochnour asked about the timeline for installing the sign. Chief Administrative Officer Johnson noted that once the project receives Planning Commission approval it will be fast-tracked. Redevelopment Agency Update Mr. Cooper identified projects that he was asked to report on. He reviewed the status of the River Project and displayed the approved site to identify the location of newly framed buildings and road extensions. One building is completely finished and will be open for occupancy by the end of September or October of 2015. He stated he has been told that there has been much interest in the building and the majority of it is pre-leased. The bottom half of the building will be occupied by the clubhouse for the development as well as commercial uses. He reviewed the timeline for completing the remaining buildings and amenities within the project and then shifted his focus to the South River Project. He noted the developer has received approval for the third phase of the project and will be submitting plans for all twelve units within the next week. All twelve units will be contained within five buildings, which will be built at the same time. The price per square foot has risen dramatically, but is still lagging behind the price per square foot in Davis and Salt Lake Counties. He noted this is a great improvement for Weber County and reported that he was told all twelve units are pre-leased. Mr. Cooper reported on the status of the development of the property west of Bingham Cyclery. No work is currently underway and any plans for future development will be brought to the Board for review and approval. He discussed the Tower View Apartment Project located at the corner of 23rd Street and Washington Boulevard. He explained the developer has encountered some unanticipated roadblocks at the site, but has worked to address them and should now be able to proceed with development. It will be necessary to amend the development agreement for the project by adjusting dates and deadlines that have been missed due to such roadblocks. He stated the project will consist of regular apartments. Mr. Cooper then discussed the Trackline Project. Exchange Road is currently closed and the site is difficult to access, but utility and infrastructure work is underway and is scheduled to be completed in mid-November. This will allow ENVE to proceed with construction of their building shortly thereafter. The Trackline Waterline Project has been advertised for bid and should be completed by May 9, 2016. He then discussed the apartment project at 26th Street and Wall Avenue. He noted that a development agreement was approved to provide for eight town homes and fifty-six apartments that would be known as Phase Two of the Union Square Project. The same developer is also working on closing on the Kiesel building and once that is completed he will be able to shift his focus to the Union Square Project. Board member Stephens stated he is somewhat concerned that the developer has been unsuccessful on one project, yet the City is working with him on another. Mr. Cooper clarified it is not a matter of the developer being unsuccessful, but, rather, the developer has not had the ability to dedicate the necessary attention to the Union Square Project. Community and Economic Development Director Christopulos agreed and added that he would prefer that the developer focus on the Kiesel Building Project and he is comfortable with what has been done to date. Mr. Cooper discussed the project at the corner of 17 th Street and Washington Boulevard, the old Pepsi building site, and referred to a participation agreement that would require the owner to bring a tenant producing more than $1.5 million in sales tax per year to the site before October 31, 2016. He noted the City is working on plan review for Advanced Auto Parts for the site and he believes the business will compete well. If the terms of the agreement are met by the developer, the City will begin annual payments of $25,000 per year for five years to the project. This is a general fund obligation rather than an RDA obligation. Mr. Cooper reviewed the location of new businesses within The Junction Project, as well as the project to locate vehicle charging stations in the downtown area of the City. He also discussed the Gibson Area Project, which calls for mansion style homes to be constructed on large parcels of property owned by the City located near the Ogden River. He stated nothing has been done to date with the exception of the demolition of an old building and securing the property. The City has secured the property and will hold it until the timing is right to proceed with the project. The meeting adjourned at 6:00 p.m. ________________________________________ TRACY HANSEN, MMC CITY RECORDER ________________________________________ RICHARD A. HYER, CHAIR APPROVED: March 8, 2016