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HomeMy WebLinkAbout4179 Resolution - Broadmoor Tax Increment Financing (TIF) RESOLUTION NO. 4179 A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, DECLARING ITS INTENT TO FORM A TAX INCREMENT AREA IN THE BROADMOOR AREA WHEREAS, for many years the City has been studying, evaluating, designing and completing key infrastructure improvements to enable a mixed use development within the Broadmoor area; and WHEREAS, Broadmoor Properties, LLC owns over 400 acres of property that is being planned for mixed use development and is in need of substantial infrastructure improvements to support the desired development; and WHEREAS, the Broadmoor area has the opportunity, if built, to serve as a significant economic engine for the Pasco community providing for increased tax revenues to support City services and providing significant employment opportunities for the residents of the City; and WHEREAS,the Washington State Legislature,during its 2021 legislative session,enacted Engrossed Substitute House Bill 1189 as Chapter 207, Laws of 2021, titled "AN ACT Relating to tax increment financing" and codified as RCW 39.114, which authorizes local governments, including cities, to carry out tax increment financing of public improvements needed to support vital private economic development projects; and WHEREAS, Tax Increment Financing (TIF) is a program that allocates revenues generated from the increased assessed valuation of properties improved by the development that are within a designated tax increment area (TIA) to pay for public improvements that are needed to support the private development; and WHEREAS, City management has identified the key preliminary TIF infrastructure improvements in Exhibit A (shown as City TIF Projects) that have been identified at this time as outside of a developer's ability to fund and achieve the desired development based on market conditions necessary to accommodate commercial and mixed-use tenants; and WHEREAS, the key preliminary TIF Projects have been estimated to cost approximately $24 million to $30 million to construct; and WHEREAS, Broadmoor Properties, LLC will be dedicating approximately 24.3 acres of land for the identified TIF Projects resulting in an average value range between $5,292,540 to $10,585,080 in project benefit; and WHEREAS, City management and Broadmoor Properties, LLC have developed and agreed upon the infrastructure responsibilities as shown in Exhibit A for each party necessary to achieve the desired development; and Resolution—Tax Increment Area- 1 WHEREAS, City management anticipates bringing forward for Council consideration an agreement between the City and Broadmoor Properties, LLC that memorializes the infrastructure improvement responsibilities provided in Exhibit A; and WHEREAS,the TIF law requires the City to prepare a Project Analysis when considering forming a TIA which includes the following key items: • Boundaries and duration of the increment area. • A description of the expected private development within the increment area, including a comparison of scenarios with and without proposed public improvements (AKA the `But for" analysis — the development would not occur "but for"the public improvements). • A description of the public improvements,estimated public improvement costs, and the estimated amount of bonds or other obligations expected to be issued. • Assessed value of real property within the increment area and an estimate of the increment value and tax allocation revenues expected. • Estimate of the job creation reasonably expected to result from the public improvements and the private development. • An assessment of any impacts and necessary mitigation to address impacts on the following: • Affordable and low-income housing • Local business community • Local school districts • Local fire service; and WHEREAS,the Project Analysis is expected to be completed by the end of May 2022 and then submitted to the State Treasurer as required by TIF law, allowing the Treasurer 90 days to review the analysis; and WHEREAS, the City will conduct public briefings on the proposed TIA to inform the community and other public agencies about the anticipated benefits and impacts associated with the development; and WHEREAS, the City Council will consider adoption of an Ordinance in September 2022 creating a TIA following any comments by the State Treasurer and testimony resulting from the public briefings; and WHEREAS,the City has created several preliminary development scenarios based on the type and timing of development that may occur within the proposed Broadmoor TIA in which even the most modest development scenario and timing would generate revenues (Exhibit B) sufficient to support the necessary infrastructure improvements needed to support the private development; and WHEREAS, the City anticipates issuing LTGO (no-voted) tax exempt bonds to pay for the identified infrastructure projects based on the additional TIA revenues from the Broadmoor development; and Resolution—Tax Increment Area-2 WHEREAS, LTGO bonds pledge the City's tax revenues as a guarantee to receive the best possible tax-exempt terms, and the City can pay debt service associated with these bonds with any non-restricted tax revenue such as sales tax; and WHEREAS, to mitigate the City's exposure related to the timing and scope of private development and the projected TIA property tax revenues,the City will schedule the timing of any bond debt issuance to coincide with certain development milestones (e.g., property closings, entitlements obtained, etc.) that near term developments will move forward (if infrastructure improvements are made by the City) providing for greater development certainty and additional tax revenue beyond property taxes to help pay for any debt service; and WHEREAS, as part of the above-mentioned Project Analysis, the City will refine the projected TIA revenues,conduct a"but-for"analysis,coordinate with the other taxing entities,and complete other items required by law. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council directs the City Manager to develop a TIF program for the Broadmoor area and prepare an Ordinance for Council's consideration to form a TIA in accordance with state law. Be It Further Resolved that the City Council supports the preliminary infrastructure projects that are identified as described in Exhibit A and recognizes that such projects may be refined as part of the City's TIF Analysis. PASSED by the City Council of the City of Pasco, Washington, the 2nd day of May, 2022. Blanche Barajas Mayor ATTEST: APPROVED AS TO FORM � _�J� r x9 e ra Barnham, CMC � F g n La C City Clerk City Attorney Resolution—Tax Increment Area- 3 Broadmoor Area Tax Increment Financing (TIF) Projects Corridors 1. Sandifur Parkway—Bedford Street to Road 108 This work will consist of: • Road widening of the existing road from Bedford Street to Broadmoor Blvd. • Full road construction, including but not limited to, as much as 7-lanes of roadway and frontage improvements on the north including curb/gutter, stormwater, sidewalk, street lighting and landscaping and Curb/gutter and stormwater on the south side from Broadmoor Blvd. to Road 103. • Construction of a core road, including but not limited to, as much as 3-lanes of asphalt road surface (toe-to-toe of curb)from Road 103 to Road 108. • Construction of domestic water main, sanitary sewer main, and Irrigation main improvements will be included within this corridor from Broadmoor to Road 108. 2. Broadmoor Boulevard—Interstate 182 to Burns Road This work will consist of: • Road widening of the existing road, west side only, including the addition of as much as 7-lanes of asphalt roadway, curb/gutter, stormwater, muti-use pathway, and the relocation of existing streetlights from interstate 182 to Sandifur Parkway. • Road widening of the existing road, west side only, including the addition of as much as 7-lanes of asphalt roadway, curb/gutter, stormwater, muti-use pathway, street lighting, and landscaping from Sandifur Parkway to Buckingham Road. • Road widening of the existing road, west side only, including the addition of as much as 5-lanes of asphalt roadway, curb/gutter, stormwater, muti-use pathway, street lighting, and landscaping from Buckingham Road to Burns Road. • Utility adjustments of the existing utilities will be included in this corridor from Interstate 182 to Burns Road. 3. Road 108—Harris Road to Sandifur Parkway This work will consist of: • Construction of a core road, including but not limited to, as much as 3-lanes of asphalt road surface (toe-to-toe of curb)from Harris Road to Sandifur Parkway. • Construction of domestic water main, sanitary sewer main, and Irrigation main improvements will be included within this corridor from Harris Road to Sandifur Parkway. Interstate Associated Improvements 4. Interchange Improvements- Interstate 182 @ Road 100 This work will consist of: • Improvements to the existing interchange including construction of an eastbound off-ramp and intersection along with restriping. • A second phase shall include bike/ped facilities connecting north to south. Intersections 5. Burns Road/ Broadmoar Boulevard This work will consist of: • Full improvements to the existing intersection including signalization, widening, curb/gutter, sidewalk with ADA ramps, street lighting, striping, and landscaping. • Utility extension and/or adjustments of the existing utilities will be included within this intersection. • This intersection will have participation in cost from other developers through a separate participation technical memorandum, prepared by the City's consultant. 6. Buckingham Drive/Broadmoor Baulevard This work will consist of: • Full improvements to the existing intersection including signalization,widening on the west side, curb/gutter, stormwater, sidewalk with ADA ramps, street lighting, striping, and landscaping. • Utility extension and/or adjustments of the existing utilities will be included within this intersection. • The signalization will be provided by Broadmoor Properties, LLC. 7. Sandifur Parkway/ Broadmoor Boulevard This work will consist of: • Full improvements to the existing intersection including signalization, widening, curb/gutter, sidewalk with ADA ramps, street lighting, striping, and landscaping. • Utility extension and/or adjustments of the existing utilities will be included within this intersection. 8. Sandifur Parkway/Road 108 This work will consist of: • Construction of a "core" roundabout that includes all the asphalt necessary to extend 2' past the proposed final toe-of-curb/gutter.This effort will also include temporary gravel shoulder drainage swale as well as striping and lighting as well as the full construction of a center truck apron and landscaped feature and entry delineators including curb/gutter and internal surfacing as determined. • Frontage improvements including curb/gutter, sidewalk, stormwater, and landscaping will be completed by the parcel owner at the time of development. • Construction of domestic water main, sanitary sewer main, and Irrigation main improvements will be included within this intersection. 9. Sandifur Parkway/ Road 103 This work will consist of: • Construction of a full intersection including signalization,widening, curb/gutter, stormwater, sidewalk with ADA ramps, street lighting, striping, and landscaping. • Construction of domestic water main, sanitary sewer main, and Irrigation main improvements will be included within this intersection. • The signalization will be provided by Broadmoor Properties, LLC. 10. Road 108/Road 103 This work will consist of: • Construction of a core intersection, including but not limited to, as much as 3-lanes of asphalt road surface (toe-to-toe of curb). • Construction of domestic water main, sanitary sewer main, and Irrigation main improvements will be included within this intersection. • Stop control determined at time of design.