HomeMy WebLinkAbout04/26/2022 04. Tax Increment Financing options 1
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 4.
For Meeting of:April 26, 2022
ITEM TITLE: Tax Increment Financing options
SUBMITTED BY: Bob Harrison, City Manager
SUMMARY EXPLANATION:
As a result of a new State law created in 2021, cities, counties, and ports in Washington State
may now utilize Tax Increment Financing (TI F) to financially support infrastructure improvements
(e.g., streets, water and sewer systems, sidewalks, parking facilities, stormwater systems, park or
community facilities, and brownfield mitigation) necessary for private development, providing for
jobs and additional tax revenue. TIF can be an important tool allowing public agencies (city,
county, or port)to make targeted infrastructure investments to spur economic development.
TIF captures property taxes generated from the increased assessed valuation on the site (called
a Tax Increment Area or TIA) that results from private development following the infrastructure
investment. Revenues from regular property taxes assessed against the increment value only are
captured to pay for the public improvements or the bonds issued for public improvements. The
new law is design so as no taxing district is financially harmed by the formation of a TIA as each
taxing entity will continue to receive its existing property tax base.
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General ,TIF captures property taxes
basic TIF Model
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generated from the Encreaseci assessed
valuation on the site that res ul3 from New
private development following 2 Tax
infrastructure investment_ . Base
i Incrc nicntJI Taxes.
Revenues
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R#,*r.*a ir4��Aux..prgpfnX 1M EExisting 8�5 to r or•real
2Inct the Incrtident Value UN,are capture. -
3 ktwNiur~i{Or5Rir5ue l4 flaw L� t.ix,r I:
▪Ta pry"public in p.entmdnt term" normal tiwlH WI. hod..,
'TO r+Ip�y dt Mi.%fix1,4014 irr.pr Cf"
Statutary life of TIF diti1ricL
A city, county, port that is interested in forming a TIA must complete a Project Analysis that is to
be submitted to the State Treasurer for review. The Project Analysis must address the following:
* Statement of sponsoring jurisdiction's objectives for the designated increment area and any
property intended to be acquired by the sponsoring jurisdiction
* Boundaries and duration of the increment area
2
* Description of the expected private development, including a comparison of scenarios with
and without the proposed public improvements
* Description of the public improvements, estimated public improvement costs, and the
estimated amount of bonds or other obligations expected to be issued
* Total certified assessed value of real property within the increment area and an estimate of the
increment value and tax allocation revenues
* Estimate of the job creation reasonably expected to result from the public improvements and
the private development
* An assessment of any impacts and any necessary mitigation on the following:
o Affordable and low-income housing
o Local business community
o Local school districts
o Local fire service
Some key elements of Washington State's TI F program include:
* Excludes voter-approved school district levies and state property tax levy.
* Increment areas may not total more than $200 million in assessed valuation, or more than 20% of
the total assessed valuation of the jurisdiction creating the increment area, whichever is less.
* Designed for a specific project/site (not"build infrastructure, and hope development will follow").
* Private development would not otherwise occur within the reasonably foreseeable future but for an
investment in infrastructure. Must be able to demonstrate that the infrastructure will result in private
development, which will increase the assessed valuation of the project/site.
* The local government may only receive TIF revenues for the period of time necessary to pay the
costs of the public improvements.
* If the local government finances the public improvements, the increment area must be retired no
more than 25 years after the adoption of the ordinance designating the increment area.
* No more than two increment areas and they may not overlap.
* TIF revenues can only be used for public infrastructure (streets, utilities, sidewalks, parking, etc.)
Stowe Development & Strategies (SDS) along with ECONorthwest are guiding a number of
public agencies through the TIF process and implementation. SDS has prepared the attached
proposal to examine and assist the City in potentially forming up to two TIA's. SDS will provide
an overview of TI F during the upcoming Council meeting and how this new legislation may benefit
the City.
ITEM BUDGETED:
STRATEGIC PRIORITY:
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
Staff recommends Council authorize moving forward with a resolution supporting a Tax Increment
Financing District.
ATTACHMENTS:
Description Upload Date Type
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Tax Increment Financings
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<.206.999.1099 ECONorthwest
Bob@stoweds.com I ®www.Stoweds.com _
15117 Main Street,Suite 205 PMB#131 ECONOMICS • FINANCE • PLANNING
Mill Creek,WA 98012
TIP can be an important tool allowing public agencies to make targeted
infrastructure investments to spur economic development
Basic TIF Model
Generally,TIF captures property taxes
generated from the increased assessed $ I
valuation on the site that results from New
private development following Tax
infrastructure investment. c Base
I 1 ra -- ► Incremental Taxes
u Revenues
a flow
Revenues from REGULAR property taxes assessed 2 Existing Tax Base to normal
against the Increment Value only,are captured: To Revenues continue to flow to taxing
V To pay"public improvement costs" Q normal taxing bodies bodies
✓ To repay bonds issued for"public improvements"
Statutory life of TIF district
Source:Power Point Presentation to Washington Ports,WEDA, WCMA, and other
groups about TIF.
STOWS
March 22, 2022 DEVELOPMENT&STRATEGIES
A Real Estate and Community Development
Strategy and Execution Company
Bob Harrison, City Manager
City of Yakima
129 North end Street
Yakima,WA 98901
Submitted via email to:Bob.Harrison@yakimawa.gov.
City of X .9139
Dear Bob, Y County .9849
Thank you for the opportunity to submit our proposal to conduct tax increment Fire District 9518 Total 4.75to
pp Y p p Levy Rate
financing analysis and implementation plan for two Tax Increment Area's (TIA's) Transit .1971 X \
to help achieve the City's economic development goals. Washington's new TIF Port .1732 $121 $5 74,750
law(ESHB 1189)is a meaningful improvement from past versions of tax million
Library District .4362
increment financing in Washington. However,it also requires careful $1000
consideration and preparation of materials to move the program forward to PUD 1002
creation. EXCLUDE voter-approved school district levies
EXCLUDE state property tax levy
We have significant experience helping public agencies identify implementable
strategies and actions to unlock the value of their properties or study areas and
help them create successful public-private partnerships that achieve
outstanding results. We are currently working with a number of agencies to
advance their projects utilizing TIF revenues(e.g.,City of Kirkland,City of
Pasco, City of Washougal, Pierce County/Town of Steilacoom, and the City of Property Tax Allocations
Lakewood). 3,500,000
3,000,000 Mill
My firm, Stowe Development&Strategies provides an added benefit and 2,500,000
differentiator in that I have successfully served as a city manager for over 30 2,000,000
years and have guided two large downtown planning and economic 1,500,000
development efforts in the cities of Mill Creek and Bothell. These public-private 1,030,000
partnership developments required rigorous analysis to ensure that public 500,000
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investments and resources produced an acceptable return and viable
development. I have considerable experience leading successful planning otiti ati oti3 otia ay otie oti1 otia oti" 030 o3ti o3ti p3 o3h mb � o� �� 6> �ti �° �' �6 �'
ti ti ti ti ti ti ti ti 1. ti ti ti ti ti ti ti ti ti ti 1. 1. ti ti le 1. v ti
processes and financial assessments,creating development visions with .c;ri .County ■Fire ■Other Districts
executable strategies to achieve the desired development, and have directed and
negotiated real estate transactions exceeding sixty million dollars generating
over five-hundred million in capital investment to date. I will serve as the Source:Power Point Presentation to Washington Ports,WEDA,
WCMA, MRSC and other groups about TIF.
project manager for this important project.
' 2
g Our team includes:
' • Stowe Development&Strategies. An advisory economic and community
?� development firm specializing in public-private partnerships that have
achieved memorable and successful results. Stowe Development&
Strategies will serve as the lead firm for this project.
• ECONothwest. A leading economic and fiscal analysis firm serving the
(� Northwest. Morgan Shook has worked on every form of tax increment
� financing in Washington state and brings his knowledge of land
i f,1 ' development,infrastructure funding, and taxation to the project.
r;_ -- / - ; We believe our proposal provides a comprehensive and thorough approach to
,` s 3 '`11 evaluating and creating two TIA's for the City of Yakima. Our approach to the
/1 ' • work is built on decades of experience in both land development and tax
,Y increment financing. Additionally,our collective firms experience with each
° ,'1 - i other allows our team to advance the project quickly and efficiently in terms of
4
'-r- cost control.
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''`: 4 We also believe there is not a more qualified team to ensure that any tax
'' � increment area is created and managed in accordance with the new law to
'` ' ' ` �l. maximize the public benefits derived from the investment of property tax
r �y' dollars.
; ` T ' On behalf of our team,thank you for considering this proposal. Please contact
� V��? me with any questions. I can be reached at 2o6.999.1o99 or Bob@stoweds.com.
2`.� .Ii 'L`r
,���,��� � ►�:'� We look forward to hearing from you.
`�^) ;, 1/" Warm Regards,
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n I r ii1 4.aki` Stowe Development&Strategies
'p, I/i'? Robert S. Stowe
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Proposed Approach & Tasks
Our team proposes a two-step approach in collaboration with the City. We will work alongside the City's staff, its consultants,and Council to
advance two eligible and viable Tax Increment Area's(TIA) and projects that meet the requirements and intent of the new law,and will avoid potential
legal challenges. Our team has decades of experience in managing various project elements such as a TIF component as part of a larger planning
process, including master plans, corridor plans,sub-area plans, revitalization plans,and infrastructure improvement plans.
Our team's two-step approach is design to provide a predicable sequence of actions to deliver a
targeted and high value TIF Strategy and Implementation Plan.
Step 1: TIF Strategy Step 2: TIF Implementation & Report
x
Goals: Goals:
• Identify and assess potential targeted TIF infrastructure improvements • Prepare and submit the Project Analysis Report to the Office of the State
with the City of Yakima. Treasurer including a comparison of scenarios with the proposed public
• Evaluate several potential TIA boundaries leading to preliminary improvements and without the proposed public improvements- The But
boundaries. For Analysis.
• Prepare a preliminary analysis of TIF revenues available to support the • Recommend potential refinements to TIA boundaries as needed.
City's identified targeted public improvements. • Refine TIF Revenues.
• Prepare potential financing plan based on selected targeted
improvements.
• Create and manage the Public Briefings,including potentially reaching
out to impacted taxing districts.
• Create the TIF Ordinance for Council Consideration.
L_ Step 1: TIF 4rategy
Task 1: Project Startup &Project Management
1.1 Research,Refine Scope,&Launch. We will continue our review of the City's comprehensive plan, downtown plan, economic development plan,
proposed infrastructure investments, other studies,reports, and analysis related to development of the envisioned development by the City within
the two TIA's. Our first meeting objectives will be to:
• Refinement of project scope and approach(as needed);
• Introduction of the team;
• Confirmation of project objectives;
• Identification of a TIP Committee(TIF-C);
• Team information sharing regarding existing conditions, issues, constraints; and opportunities.
1.2 Project Management. Bob Stowe of Stowe Development & Strategies will serve as the Project Manager for this project.We will collaborate
and coordinate our work with the City Staff and any identified consultants'. We will set up regular times to coordinate with the TIF-C through
video conference check-ins. For planning purposes,we have assumed twelve check-in meetings over the duration of the project. We will work
closely and in partnership with the TIP-C to communicate progress and anticipate any potential challenges.We will provide monthly progress
reports in addition to the deliverables described as part of Step 1 and Step 2. Note: Project Management activities and budget have been allocated in
both Step i and Step 2.
Task 2: Identify and Assess Targeted Infrastructure, Potential TIF Boundaries, and Preliminary TIF Revenues
2.1 Public Infrastructure Need. We will review and provide recommendations for the public improvements that establish a nexus to the
proposed private development that are identified by City's team as part of any infrastructure gap analysis.From a TIF perspective,the goal of the
task is to create a preliminary foundation of information,analysis, and deliberation for subsequent implementation of TIF for the City. An
essential part of specifying an eligible TIA is: 1)understanding how the proposed infrastructure supports development within each of the TIA's
(and perhaps beyond). Later as part of Step 2 we will use this information as we further assess how the infrastructure passes the "but for"tests
(meaning that development is contingent on the provision of public sector action to fund/build infrastructure).
2.2 Tax Increment Boundaries and Preliminary TIP Revenues. We will identify two or three potential TIA boundaries for each site (total of 4 to
6 options)that lead to preliminary TIA boundaries that maximizes potential TIF revenue, achieves the City's private development objectives,
manages the City's debt risk, and successfully implements a TIF program and project. As part of a sensitivity analysis,we will evaluate a smaller,
targeted TIA boundary, a larger TIA boundary, and various timing schedules associated with private vertical development for comparison
purposes. This work would also evaluate any TIA boundaries for the lesser of 20% of the assessed value of the jurisdiction or $200 million
formation threshold established by State statute.
Step 1 Deliverables:
• TIP Strategy Report: This report would specify eligible infrastructure projects, future development, and projected tax revenues.
p 2 : /Ili Implementation & Re
Task 3: Project Management. Project management activities identified in Task 1.2 will continue throughout Step 2.
Task 4: Prepare Project Analysis Report. The team will prepare a"Project Analysis Report" to submit to the Office of the State Treasurer.
Given the newness of the law,the team will be available to respond to questions or needed revisions.The report will be consistent with all required
elements of the law. City staff will have the opportunity to review draft materials before they are final. The Project Analysis Report will support the
critical findings needed to create a subsequent ordinance for the TIF formation, including the following:
4.1 Refine TIA Boundaries. Depending on the results of the But-For analysis and any infrastructure cost updates,we will evaluate the Preliminary
TIA boundaries for any beneficial modifications.
4.2 Refine TIP Revenues. Building off the work completed in Step 1,we will update and refine the projected revenues based on known development
interests, changes in the market place that may impact the proposed development timing,targeted infrastructure improvements, and any TIA
boundary changes. This work would refine what portion of the overall levy rate across taxing jurisdictions would be available for TIF. The analysis
will include discounted cash-flow research that is needed to determine the amount available to support bonds or other obligations.
4.3 Estimate of future job creation:This work would estimate construction and ongoing job impacts from public improvements and private sector
development.
4.4 Ensure compliance with the new law:This work would outline specifically how the project satisfies the requirements of the new TIF law, and
outline any potential legal risks and how to mitigate those risks, including working with City staff to identify any impacts to: (i)Affordable housing; (ii)
Local business community; (iii) Local school districts; and, (iv) Local fire service.
Task g: Prepare Financing Plan. Based on the identified targeted public improvements,we will project TIF revenues over a term acceptable by
the City(TIF legislation allows the issuance of debt up to 25 years)based on the City's cost of capital(bond issuance,bank financing, or other
financing means) over the identified term from which to utilize TIF property tax revenues. We will also consider the timing of any debt issuance to
reduce the City's risk as much as possible. For example,the new TIF law anticipates that the public entity would likely issue debt and then begin
design and construction activities associated with the infrastructure necessary to generate the private vertical development. However,in some cases,
the private developer may be willing or want to control the timing and construction of the public improvements along with site development, and
therefore construct the public improvements which would then be conveyed to the City upon completion. This alternative would provide more risk
protection to the City in terms of the likelihood that vertical development will follow. Conversely,the developer would experience some interim
project/construction cost until the project is conveyed to the City and the City provides payment. There are some challenges with this approach that
we would want to work closely with your legal and bond counsel to examine to ensure tax exempt debt can be issued and enough early certainty can
be provided without guaranteeing to the developer that payment for the public improvements is conditioned on a TIA formation.We can also examine
any developer guarantees to proceed with development based on an agreed-upon schedule to mitigate risk of debt issuance.
6
Task 6: Create and Manage Public Briefing. Before creating a TIA, the City must hold at least two public briefings for the community on
the TIF project.The consultant team will be responsible for noticing the meeting(both on City's and other media channels), creating the meeting
content, and assisting in managing the public briefing process. Given the newness of the TIF law,we recommend the City conduct some initial and
early outreach to affected taxing jurisdictions to educate them about the TIF law and the benefits of its use by the City. Targeted outreach to any
adversely impacted jurisdictions, such as a school district. Some additional outreach to the Yakima County Assessor on implementation of the law is
recommended as well. This outreach may also involve engaging the Department of Revenue to serve as an outside agency advising taxing districts of
proper implementation. We have included a modest amount of time for this item and may need to be adjusted based on actual need.
Task 7: Mitigation Support. If affordable housing or school district impacts require mitigation, the consultant team has deep expertise in
intergovernmental relations and affordable housing to support the City in providing a mitigation approach consistent with the State law. We have
included a modest amount of time for this item and may need to be adjusted based on actual need.
Task 8: Prepare TIA Formation Resolution/Ordinance. The consultant team will prepare an ordinance authorizing the TIA formation
along with a presentation to the City Council. Key findings will be drawn from analysis in Steps 1 and 2 and subsequently submitted in the Project
Analysis Report.
Step 2 Deliverables:
• TIF Project Analysis Report: This report would be submitted to Treasury.
• TIA Increment Area Formation: This would include the TIA boundary, revenue estimate, financing plan,public improvement description, any
negotiated mitigation,public hearings, and ordinance.
Organization/Management
CITY OF YAKIMA.
Bob Stowe, SDS Morgan Shook, ECONW
• Project Manag - • Economic Analysis/TIF Revenue
• Strategic Direction Lead • Job Creation Assessment
• But-For Analysis Lead • Strategic Direction Support
• Infrastructure Needs/Finance Plan Lead • Project Analysis Report
• Public Briefings/Mitigation Support • Finance Plan Support
• Ordinance/Council Presentation Lead • Ordinance/Council Presentation Support
Available Resources Schedule
We have assembled a highly-skilled team of experts with unique We are confident that Step 1 and 2 can be completed in 2022. A
expertise working with public sector clients on conducting a TIF detailed project schedule is provided on the next page. Although the
analysis and developing an implementation plan to be successful. Bob City will be able to adopt the TIA in 2022,it will not go into effect
Stowe of Stowe Development & Strategies will lead the project with until June of 2023 in accordance with State law, allowing for the
support from Morgan Shook of ECONorthwest. County Assessor time to calculate and allocate TIF revenues.
This team exemplifies the deep level of expertise, knowledge,
reliability, and client focus that the City expects. This combined
experience means that our team can provide knowledgeable, timely,
and cost-efficient support to meet the City of Yakima's economic
development goals. The team also includes support staff who can be
deployed as needed to ensure high responsiveness and cost-effective
support across functions in all areas of the project scope if necessary.
Project Schedule 8
TODAY
2022
City of Yakima TIF Project Schedule - DRAFT Ma Apr May Jun Jul Aug Sep Oct Nov Dec
3/1 4/1 5/1 6/1 7/1 8/1 9/1 10/1 11/1 12/1
Activity/Actions 1 2 3 4 5 6 7 8 9 10
1 Project Startup and Project Management
1.1 Research,Refine Scope,and Launch
•Research and Review Project Reports and Studies
•Finalize Scope of Work and Agreement with City
•Kick-Off Meeting
1.1 Project Management
1 Check-in Meetings&Coordination
Q Progress Reports and Contract Administration
} 2 Identify and Assess Targeted Infrastructure,
rtn Potential TIA Boundaries, 8,Preliminary Revenues
2.1 Identification of Public Infrastructure Need with City Staff TIA Effective
•Review any gap analysis and provide TIF nexus recommendations
2.2 Create Two T1A Boundaries&Preliminary TIF Revenues
•Identify&Create Boundary Options for Evaluation P Debt Issuance
•Select Preferred Boundaries R
•Project Preliminary 11F Revenues Based on Projected Development O
3 Project Management
J
Check-in Meetings&Coordination
• E Progress Reports and Contract Administration
Infrastructure
4 Prepare Project Analysis Report to include:
_ T
4.1 Refine PA Boundaries based on But-For Analysis&Cost Updates
4.2 Refine TIF Revenues
4.3 Estimate
ureCoFuture Job
cewithCreation Development/Jobs
4.4 Ensure Compliance with New Law _ N
Submit Draft Report to City Staff for Review/Respond to Questions and Revisions D
Submit Report to State Treasurer for Review/Respond to Questions&Revisions State 90 Day Review
cy 5 Prepare Financing Plan
0. •Assist City in Determining Debt Term,Size,and Type Most Beneficial
•Evaluate who is Best/Willing to Design and Construct Improvements 71,07)
Evaluate any Developer Guarantees -
6 Create and Manage Public Briefing
•Prepare Presentation and Conduct Public Briefings _
•Early Outreach to Affected Tax Districts 7 Mitigation Support
•Develop Mitigation Agreements as needed
8 Prepare TIF Formation Resolution/Ordinance
•Prepare Draft Ordinance for Staff Review
.Present TIF Ordinance to City Council for Consideration
Fee 9
We will manage the project through acceptance by the City. Task 1 and 2 of Step I can be completed for $16,810. Based on the results, the City can
decide if it wishes to proceed to Step 2, Tasks 3 through 8 which can be completed for $S3,020. Total costs for Steps 1 and 2(All Tasks)would be
$69,830.We are flexible about project scope and activities and are open to working with you to modify our approach and fee based on project needs.
We believe that our team offers tremendous value and can accomplish your ambitious goals and scope for this project.
Task 1 - Project Startup & Project $5,810
Management •
Task 2 - Targeted Infrastructure C111,000 i
TIF Boundaries & Revenues ; STRATEGY
i
i
I
Task 3 - Project Management $5,220
Task 4 - Prepare Project $28,010
Analysis Report
Task 5 - Prepare Financing Plan $5,750
Task 6 - Create & Manage Public $6,460
Briefing
Y
Task 7 - Mitigation Support $3,510
Task 8 - Prepare TIA Formation $4,070 IMPLEMENTATION
Ordinance & REPORT •�. -71
TOTAL $69,830
10
Team Experience & Skills
We offer strategic real estate development consulting services to cities, higher educational institutions
STOWE and development clients. If you want to expand your city's economic base, revitalize its downtown,
e, redevelop a college campus, or guide your community to a greater sense of place for business to prosper
(0.....<4, DEVELOPMENT&STRATEGIES and families to enjoy — we can help you achieve these goals. In these challenging economic times
A Real Estate and Community Development especially, our clients need theproven experience andguidance of a trusted economic developer and
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Strategy and Execution Company partner who understands how to build community support for these kinds of projects. They want
someone who understands the political process and needs of its elected and appointed officials; and who's
succeeded in both good times and bad.
No two cities or developments are alike. This means every project needs its own new answers.We offer our clients many different economic tools and
strategies. They are drawn to our proven track record, our creativity and the many ways we can leverage available resources and capabilities.
Bob Stowe is the principal and founder of Stowe Development& Strategies —a company he formed in 2016 to help public sector clients succeed with
their economic and community development interests. He has built a strong reputation as a real estate and community development strategist, and
an execution specialist providing a knife-edge focus helping his clients achieve their economic and community development goals. Bob understands
the importance of public-private partnerships in developing great and sustainable places that supply private sector jobs and create a sense of
community.
Because the oxygen of development is capital and without it nothing can happen, he excels in aligning public and private sector interests to create an
environment that will support the desired development with the capital to sustain it.
EC 0 ECONorthwest specializes in the application of economic and financial principles and methods to the evaluation of public
policies and investments. Incorporated in 1974, ECONorthwest has completed more than 2,500 projects for public and private
clients. Our personnel have advanced degrees and decades of work experience in planning, development, economics, finance,
N Vs/ and public policy. Our analysis is informed by an understanding of local, regional, and national economies, as well as market
trends, demographics, and business and job dynamics.
We understand the trade-offs of competing tax and fee systems and can weigh the effects of proposed reforms on
firms, individuals, and overall economic efficiency, equity, and stability. ECONorthwest has helped numerous clients clarify
state and local budgets while providing policymakers with a stronger budgetary foundation for decision-making. We help our
clients plan for future growth, effectively leverage public tools and resources, and make sound decisions. ECONorthwest has extensive experience
with the local government estimating, evaluating, and implementing tools to fund infrastructure.
Bob Stowe,Principal - Stowe Development&Strategies
vPit With 33 years of experience in progressive community transformations, Bob is one of the Northwest's most innovative and
•
entrepreneurial real estate and community developers. He uses sound long- range fiscal planning skills and has achieved
-t enviable results in leading redevelopment efforts from the dream stage to construction. This is true for projects large and
small, straightforward and complex. Bob's understanding of Washington's State's new TIF legislation, experience with
similar project funding streams, and his ability to create partnerships and agreements with other agencies, make him an
ideal project manager and team member for the City of Yakima's TIF analysis and implementation.
Bob has been responsible for leading, managing, coordinating, and implementing a wide variety of complex and multi-faceted projects including: TIF
project management and analysis;vision concepts; master plans; sub-area plans; redevelopment/revitalization plans; comprehensive plans; property
acquisition; surplus property sales; development agreements; public infrastructure and facility improvements; Transit Orientated Developments;
RFQ/RFP process design; federal and state grant application and administration, to name a few. Bob is an excellent communicator and facilitator
with the ability to coordinate and aligning the interest of multiple agencies and stakeholders.
Bob was the City Manager for the City of Bothell,Washington from 2005 to 2016 where he was the architect and leader of Washington's largest and
most successful publicly-led downtown revitalization. Under Bob's leadership, this project utilized a local infrastructure financing tool award(AKA
TIF light) as part of the funding package that stimulated private investment of over $300 million, a very big step in achieving the City's 25-year goal
of$650 million in just a few years, and during the worst recession in recent history. Bob's excellent project management and leadership skills suc-
cessfully guided the development of approximately$150 million in public sector improvements (relocation of SR-522, new streets, storm water
system, parks, environmental clean-up, etc.) identified as necessary to achieve the revitalization vision. The massive public development plan and
schedule also needed to align with private sector purchase of surplus land from the City, environmental remediation, public streets to be developed
by the private sector, and on-site mixed-use development. Precise scheduling, communication and the ability to respond to changing conditions
were skills that Bob successfully delivered on this project. It's important to note that the public sector improvements included close coordination
and work with multiple public agencies. Furthermore, the City's revitalization vision and public sector investments were identified many years in
advance of any actual construction and redevelopment, requiring Bob to manage the budgets of various projects with aged cost estimates and yet
still create a revitalization project that successfully survived and flourished through and after the recession.
Before arriving in Bothell, Bob was the City Manager for the City of Mill Creek for nine years and helped lead development of the award-winning Mill
Creek Town Center in the early 2000s. His first downtown transformation project began with the revitalization of Downtown Dayton in the late
1980s.
The hallmark of Bob's effort is his commitment to create well designed and environmentally sustainable places where people want to live,work, and
come together to celebrate. Bob has tackled the most difficult and complex projects, achieving the redevelopment and economic dreams of several
communities with his failure is not an option approach.
EDUCATION McMenamins Anderson School,
Bothell,WA 190,000 SF Adaptive Re-Use
• MBA,Albers School Of Business & Economics, Seattle University
(with honors) Bob Stowe directed this massive undertaking to turn the former school
• BA, Urban and Regional Planning, Eastern Washington University and adjacent run-down pool property into as catalyst development for
Downtown Bothell as part of the Bothell Landing Redevelopment. Project
HONORS AND AWARDS included converting 72 classrooms in the main school structure into hotel
rooms, construction of an on-site brewery, movie theater, day spa, warm
• 2011 Washington City/County Management Association —
Award for Excellence salt water pool, restaurants,bars and event spaces, and public gardens
• 2011 Governors Smart Communities Award planted throughout the property.
• 2011 Association of Washington Cities Municipal Excellence in
Economic Development
• 2011 Puget Sound Regional Council Vision 2040 Award
• 2007 Governors Smart Communities Award
• 2006 Washington City/County Management Association —
Program Excellence Award for Innovations in Local
Government
• 2003 Washington City/County Management Association —
Award for Skill in Intergovernmental Cooperation
• 1998 Washington City/County Management Association —
le
Award for Skill in Intergovernmental Cooperation
• 1997 Washington City/County Management Association —
Program Excellence Award for Innovations in Local Government
F ■
Sample Projects and References NI
Vision & Transformation Transit Oriented Development New Mixed-Use Vision
Stowe Development& Strategies Stowe Development & Strategies Stowe Development& Strategies
Bothell, Washington Kirkland, Washington Lakewood, Washington
Bothell's Downtown revitalization is Washington's Stowe Development&Strategies(SDS)is leading and Since 2017, Stowe Development&Strategies (SDS)has
State's largest and most successful publicly-led positioning the Kingsgate Park and Ride, an 8 acre site, guided the City of Lakewood to develop a new vision for
downtown revitalization projects. Bob Stowe was into a Transit Oriented Development(TOD)in Kirkland redevelopment of 35 acres along Pacific Highway.The
the City Manager for the City of Bothell,Washington Washington. The Kingsgate Park and Ride is currently vision for this area, called Lakewood Landing,is for
from January 2005 to mid 2016 where he was the owned by the Washington State Department of new high quality mixed-use development offering
architect and leader of this award-winning Transportation(WSDOT). retail, office, and housing. Lakewood Landing requires
development whereby over 25 acres was assembled the aggregation of the current Washington State
under City ownership for municipal amenities and SDS is working collaboration with WSDOT, City of Department of Transportation(WSDOT)maintenance
the remaining property(approximately 18 acres)sold Kirkland, Sound Transit,King County Metro,and site and 10 private parcels.
for private mixed-use development. Early revenue ARCH(A Regional Coalition for Housing)to create a We helped the City negotiate an agreement with
from LIFT(AKA TIF Light),created the necessary model for future transit oriented developments on WSDOT allowing the City to market and to facilitate
momentum for success. State owned property.The proposed TOD has been the sale of the WSDOT property along with any
designed with the goal of achieving significant
Under Bob's leadership,this project stimulated abutting properties. We are currently working with
private investment of over$300 million, a very big affordable housing along with supporting multimodal the multiple property owners to gain their preliminary
transportation infrastructure provide multiple public
step in achieving the City's 25-year goal of$650 support to market and sell their individual properties
million.The fact that nearly half that goal was benefits,including maintaining parking capacity for to a prospective purchaser/developer. Recently,SDS
reached in just a few years, during the Great transit riders,and adding market rate housing,and and ECONorthwest prepared a TIF revenue analysis
Recession, and with leverage from public/private commercial development. for the City as a potential funding option for public
collaboration,made it all the more remarkable. improvements.
Contact: Anthony Buckley, Director
Contact:Mark Lamb,former Mayor and Council Washington State Department of Transportation - Contact:John Caufield,City Manager, City
member(2004-2014) - 206.290.4618 360.705.7039 of Lakewood,WA. - 253.983.7703
mark@northcreeklaw.com BuckleA@wsdot.wa.gov Jcaulfield®cityoflakewood.us
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\ MIAdditionalProject Experience Bob Stowe,Principal -Stowe Development&Strategies
• 8gth Street Area Station TIP Analysis,City of Kirkland,WA(in-progress)
• Chambers Bay Old Mill Site TIP Analysis, Pierce County/Town of Steilacoom,WA(in-progress)
• Broadmoor Mixed-Use Destination Development Strategies,TIP Analysis and Development Agreement Negotiations(in-progress), Pasco,Washington
• City of Washougal Downtown TIP Analysis, City of Washougal,WA(in-progress)
• Parkland Spanaway Business Corridor Study,Pierce County.
• Osborn Community Visioning Process&Facilitation,City of Leavenworth,Washington
• Lake Stevens Civic Center(City Hall&Library)Public Private Partnership Plan and Development,Lake Stevens,Washington
• Mercer Island Transit Oriented Development,Mercer Island,Washington
• Quil Ceda Village Master Plan&Strategies, Quil Ceda Village,Washington
• Webster University,Strategic Real Estate Development,United States&Europe
• Bremerton Eastside Employment Center Market Analysis, Redevelopment&Subarea Plan, Planned Action EIS,Bremerton,Washington
• Tjerne Place Vision and Redevelopment(in-progress),City of Monroe,Washington
• Fifth Street Campus Redevelopment,Chelan County PUD,Port of Chelan, City of Wenatchee,Washington
• Amazon HQ2 Proposal,Tulalip Tribes,Washington
• Economic Development Strategies for Downtown Sub-Area Plan,_City of Lake Stevens,Washington
• Economic Development Strategies and Actions,City of Shoreline,Washington
• Metro Everett&Other Economic Development Strategies and Actions,City of Everett,Washington
• Downtown Economic Development Plan and Strategies,City of Mount Vernon,Washington
• Downtown Economic Development Strategies and Actions, City of North Bend,Washington
• Strategic Development Advisor, University of Washington Bothell,Washington
• New Town Center,City of Mill Creek,Washington
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Morgan Shook, Partner - ECONorthwest
Morgan Shook is a Senior Policy and Economic Analyst working in real estate, land use, and transportation economics, and
finance. He has deep expertise in economic, market and financial analytics that he brought to bear in business, enterprise,
and policy settings. Morgan has worked for a range of government,business, and non-profit clients to advance their
missions that in diverse set areas and topics.
Morgan has worked on every form of tax increment financing in Washington including Community Revitalization
Financing, Local Infrastructure Financing Tool, Local Revitalization Financing (LRF), Landscape Conservation and Local
"etInfrastructure Program, as well as the recently passed Tax Increment Financing bill in the 2021 legislative session. Morgan
has worked on the following TIF projects in Washington State: City of Lakewood, Chamber Bay Old Miss Site, City of
Kirkland, City of Washougal, City of Kent, City of Pasco, Unico Properties, and Segale Properties.
Before joining ECONorthwest, Morgan worked in biotechnology development at the Institute for Systems Biology, and health disparities research at
the University of Chicago. Morgan recently served on the Seattle Planning Commission.
Education
• M.U.R.P., Portland State University
• B.S. Molecular Biology, University of Puget Sound
• Certificate in Commercial Real Estate Development, University of Washington Extension
Areas of Expertise
• Economic Development
• Affordable Housing
• Land Use Planning
• Market& Feasibility Analysis
• Infrastructure & Finance Funding
• Transit-Oriented Development
Project Experience
Northwestern staff have completed additional tax increment financing feasibility and implementation reports for jurisdictions in Washington over
the last 15 years. This includes specifying eligible and viable projects as well as estimating potential TIF proceeds.This includes the following projects
• Community Revitalization Financing, City of Spokane • Landscape Conservation Local Infrastructure Program, City of Bellevue
• Local Infrastructure Financing Tool, City of Puyallup • Landscape Conservation Local Infrastructure Program, City of Shoreline
• Local Revitalization Financing (two increment areas), City of Puyallup • Landscape Conservation Local Infrastructure Program, City of Tukwila
• Local Revitalization Financing(two increment areas), City of Renton • Landscape Conservation Local Infrastructure Program, City of
• Landscape Conservation Local Infrastructure Program, City of Mountlake Terrace
Seattle • Landscape Conservation Local Infrastructure Program, City of Arlington
• Landscape Conservation Local Infrastructure Program, City of
Tacoma
Northwest
DEVELOPMENT & STRATEGIES
#,-"N‘ STOWE
A Real Estate and Community Development ECONOMICS IICS • FINANCE • PLANNING
Strategy and Execution Company
t.206.999.1099
Bob@stoweds.com I ®www.Stoweds.com
15117 Main Street, Suite 205 PMB#131
Mill Creek,WA 98012