City Council Minutes

CITIZEN COMMENTS: None

City Manager Word stated the purpose of the meeting was to discuss two development projects and a parking deck that is proposed to be constructed in the southwest corner of Wing and Main, which is presently City Parking Lot #2. These projects were introduced at a DDA meeting and it was determined that discussion with and direction from City Council was needed.

Jim Long presented a conceptual drawing of a 3-story building of approximately 33,000 square feet. The building would hold retail and office space, and require approximately 112 parking spaces. The entrance to the building is proposed to be at the southwestern corner of the building, the back of the building to be connected to the parking deck, with the building façade seen on the western and southern face of the building.

Margene Buckhave described her proposed development as two all-brick 2- or 3-story buildings facing Dunlap, of approximately 20,000 or less square feet for the two buildings. It is proposed that the first level would be retail or office with the second and third level being residential. The concept has four residential units per building, with a small courtyard between the two buildings, requiring approximately 45 parking spaces.

It was stated that an assumption was made by both developers that the projects would not come to fruition without a parking deck being built in between them. It was also stated that the proposed parking deck would have to absorb the existing parking spaces of the lot, plus the parking spaces needed by the new projects, plus additional parking spaces presently needed by downtown businesses.

Matt Jobin presented a tentative parking structure sketch designed to fit between the two proposed developments. Specifics included in the design were:

- The deck will be approximately 10 feet from each development.

- Entrance to the deck will be from either Wing or Dunlap Street.

- Two stair/elevator towers.

- Three supported levels, a full basement, and the upper level open.

- Approximately 357 spaces in the garage, resulting in approximately an additional 80 spaces than presently exists.

- The footprint is approximately 215x125 feet.

- Cost of the deck is projected to be $12,000 to $14,000 per space.

- Eight months to build.

- Depending on maintenance, deck should last 40-50 years.

Discussion took place on various possible locations for a deck, factors involved in the proposed design, and possible configurations of the proposed deck.

Assistant City Manager/Finance Director Nickie Bateson outlined specific potential sources of funding for the parking deck and the various factors that must be considered in reaching a decision. Funding sources enumerated included: special assessments, tax increment revenues, the expansion of DDA boundaries, parking credits, private developer contributions, fund reserves, user fees, and bonds. Each funding source listed several questions and factors that need to be taken into account in arriving at the appropriate method(s) of funding. Three types of bonds were listed: Unlimited Tax General Obligation Bonds, Limited Tax General Obligation Bonds, and Tax Increment Bonds. It was pointed out that a general obligation bond, with the lowest interest rate, requires approval by the electorate. The election could either take place next November or at a special election prior to that time.

A conservative preliminary analysis of a 20-year projection for the DDA was conducted. Based on the analysis, it appears that the deck project could be feasible with the help of additional revenue sources. Key factors taken into account were:

- Using FY 2006 as the base year, a 3% factor was added per year for all revenue and expenditure categories.

- The current bonds will be paid off in FY 2009, which will result in a 54% reduction in captured taxes.

- The issuance of Tax Increment Bonds over a 20-year period may be too long of a period based upon future projects needed.

- No future developments or any expansion of the DDA boundaries were taken into account.

- Capital improvements over a 20-year period have not been taken into account.

- Other sources of revenue that are needed to make Tax Increment Bonds feasible were not taken into account. Other revenue would be required as the fund balance would be insufficient to meet the City’s guidelines of minimum fund balance and the bond community’s minimum debt coverage ratio.

- Tax revenue from current or possible construction was not factored in.

Discussion ensued regarding the timing of a special election, the construction season, and current building trades climate.

- An attractive deck is more desirable than a parking surface lot.

- The presented conceptual plan of the deck is a good approach but it needs more green space and landscaping.

- Concern over maintaining historic district design standards.

- Against overdevelopment. Would like to solicit opinion from downtown businesses as to their feelings about a parking deck in Parking Lot #2 or if they would prefer a deck behind the Marquis Theatre.

- Discussion on how the deck is not feasible behind the Marquis Theatre.

- Stopping development prevents further enhancement of the tax base.

- The proposed deck could be a source for long-term parking.

Council directed Staff to proceed with "reasonable diligence" on developing firm numbers regarding costs of the deck, the viability of the two development projects, and the parking requirements.

There being no further business, the meeting was adjourned.

Respectfully submitted,

Carol T. Kasprowicz

Deputy City Clerk