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HomeMy WebLinkAboutSEPTEMBER 6,2016 JEFFERSONVILLE CITY COUNCIL JEFFERSONVILLE REDEVELOPMENT COMMISSION WORKSHOP MINUTES SEPTEMBER 6,2016 The Jeffersonville City Council held a Workshop with the Jeffersonville Redevelopment Commission on September 6,2016,that was called to order at 5:03 PM in the Mayor's Conference Room, located at 500 Quartermaster Court, Jeffersonville, Indiana. Council Members present: Matt Owen, Dustin White (6:06pm), Ed Zastawny, Callie Jahn, Scottie Maples, Lisa Gill, Scott Hawkins,Nathan Samuel and Josh Rodriguez(5:l Opm) Board Members present: Monty Snelling, Mayor Mike Moore, Jack Vissing, Callie Jahn and Matt Owen Staff Members present: City Council Attorney Scott Lewis, Redevelopment Commission Attorney Les Merkley, City Controller and Redevelopment Treasurer Heather Metcalf, Assistant City Controller Yvonne Dowd, Redevelopment Director Rob Waiz, Grant Administrator DeLynn Rutherford, City Engineer Andy Crouch, Redevelopment Administrative Assistant Janet Mayrose, Director of Planning and Zoning Nathan Pruitt and CMMS Administrator/Commission Secretary Cindy Seifert Guests present: Heather James with Icemiller, Buddy Downs with Icemiller, Brian Colton with Umbaugh, Jorge Lanz with Jacobi, Toombs& Lanz, Mike Hutt and Richard Eklund CALL TO ORDER Council President Owen called the meeting to order at 5:03 PM. WORKSHOP Councilman Owen advised that the purpose of the workshop was for Redevelopment to provide information and answer questions regarding the lease of property, the bond and the two major projects which are the subject of the bond. Les Merkley explained that the Redevelopment Commission is requesting approval from the City Council ("Council") for a lease of the project area between the Redevelopment Authority ("Authority") and the Redevelopment Commission ("Commission") and to approve the issue a bond in an amount not to exceed $29.95M. The use of the bond would be for two projects: 1 (1) 10th Street Widening from Penn Street to Reeds Lane—this project includes widening to five lanes, a center turn lane, new traffic signals and sidewalks. The Redevelopment Commission currently controls 95% of the properties necessary for the project. The estimated cost of this project is $16.8M. (2) 10th Street North Reconstruction from Allison Lane/Holmans Lane to I-265 — this project includes three additional traffic signals, reconfiguration of existing traffic signals, turn lanes, curbs, sidewalks, storm sewers and fencing. The estimated cost of this project is $7.5M. Heather James from Icemiller, added that in addition to the Council approving the bond and the lease between the Authority and Commission, they also must approve the addition of the two projects to the City Ordinance regarding Redevelopment projects and the expansion area of the TIF. Mr. Merkley advised that immediately following the approval of the lease by the Council, the Authority and Commission may execute the lease. The Council must then approve the expansion and additional projects, then the Bond Sale should occur on October 11, 2016. Mr. Merkley added further that there are two projects outside the use of bonds that are being completed through the Commission. (1) Holman's Lane widening—the estimated cost of this project is $8.2M, (2) Gottbrath Way construction—the estimated cost of this project is $4M. Brian Colton with Umbaugh presented a packet which broke down the financial summary of the Inner City Road TIF ("ICRTIF")money to be used. Mr. Colton explained that the lease payments would be$3.75M per year and would begin during construction as the road would be available for use during the construction period. Annually $2.8M would remain in the ICRTIF each year for other use. No new development contributions, nor the expansion area contributions were taken into account in projecting the surplus amount per year. Interest rates were projected at the max rate of 5%, which is unlikely to be the interest rate. Mr. Colton further described the information contained in the supporting documentation,Fee Schedules,Abatement Drop-Off Schedule,Circuit Breakers and estimated impact, and Bonds outstanding within the ICRTIF. QUESTIONS Councilman Samuel questioned the need of a lease/bond scenario. Buddy Downs of Icemiller explained that lease financing is the legal mechanism in which to satisfy the 2% bond limit allowed. Mr. Downs explained that the Authority would own the property, roadway and rights of way,over the course of the bond,after the bond is satisfied,the Authority would return the property to the Commission. Councilman Samuel asked about the location of the Gottbrath Road project. Mr. Merkley stated that it was on the river side of Hwy 62. 2 Councilman Samuel advised that the Council had been discussing the need to widen Charlestown Pike, citing a firetruck accident and alternate route to the Hwy 62 round-a-bout as reasons, he questioned where funds might be available for this project. Mr. Colton responded that there would still be the surplus,plus the unknown contributions of the expansion area. Councilman Samuel stated there are other areas/projects that may need funding during the bond term, sewer capacity downtown, Charlestown Pike, etc., he stated he is worried about the loss of these projects. Mr.Merkley advised that there is still funds within the other TIF's and not to forget the $18M spent in the downtown over the last several years. Andy Crouch advised that Charlestown Pike is on KIPDA's long term list for project funding. Councilman Samuel stated that with the growth in the east end of the City, has Redevelopment set aside funds to redevelop the center section of the City where businesses are closing. Mr. Snelling and Mayor Moore advised they are both concerned and discussions have been held concerning this issue. Rob Waiz added that he has been working with Nathan Pruitt and Planning & Zoning Regulations to classify the area as an economic revitalization zone,which will allow for incentives to relocate there. Councilwoman Gill added that she has been in on these discussions. Councilman Rodriguez asked if there was another option to the lease and bonding both projects or bonding individually. Mr. Downs advised that the best thing is to avoid multiple leases. Mayor Moore stated that in November of 2015 he met with the new council members and asked for ideas. He advised that those ideas are what he has brought to the table. Councilman Hawkins asked if the City will have a say in the design of the intersection within the Gottbrath Way Project. Jorge Lanz with Jacobi, Toombs and Lanz, advised that covenants have already been entered into with the State giving the City a voice. Mr.Hawkins asked if he is positive this intersection would not be a round-a-bout. Mr. Lanz advised that No, the intersection has already been approved as a signaled intersection. Councilman Samuel stated that he was having a hard time understanding how Redevelopment has approved Gottbrath Way, yet not Charlestown Pike widening. Mayor Moore advised that there would be development along that new road including a hotel and movie theater, which will bring in tax revenue. He added that the homeowners in Steeplechase,etc,deserve another road to access their property. Councilman Zastawny asked if the short section through the bad curve on Charlestown Pike from Holmans Lane could be added to the Holmans Lane project. Mr. Lanz said he would look into the possibility and cost. Councilman Owen stated that he didn't believe that would be possible within this project, as there are drainage ditches on both sides of the road. Councilwoman Jahn asked for the timeline to start Charlestown Pike. Mayor Moore stated that 2019 would be most likely estimate, after the projects being discussed are completed. 3 Councilman Rodriguez asked if the Holmans Lane Project included the entire length of Holmans. Mayor Moore advised that it does include the entire length, plus the portion of Veterans Parkway that is still two lanes. Councilwoman Gill asked Councilwoman Jahn for her thoughts on the bond/lease/projects as she is the Council's appointment to the Commission. Ms. Jahn advised that she was in favor of the bond, lease and projects. She appreciates the aggressive payment structure and believes it will be good for the City. Resident Mike Hutt questioned if the Commission could not make the payments on the bond,what would be the amount due from taxpayers to make the payment. Mr. Colton advised that the increase in taxes would be 26 cents per taxpayer. Councilman Hawkins asked if this was a convertible bond, could the Commission renegotiate the term of the bond. Mr. Colton advised that the bond may be paid off early with no penalty and that the life of the TIF limits the term of the bond. Councilman Zastawny requested a rendering of the North 10`h Street Reconstruction project. Mr. Lanz advised that he would send them out. He added that the project includes two 11' lanes in each direction, with turn lanes, signalized intersections, sidewalks, storm sewers, lighting, and fencing. Mr. Lanz added that there will be no property acquired and that no utilities would be relocated. ADJOURNMENT Councilman Hawkins made a motion to adjourn at 6:16 PM. Matt Owen, President Sub : Cindy Seifert d4aG J kc,k Vi s s i 3 , Ice- (4 Ge- 4