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HomeMy WebLinkAbout12/04/2018 05B Council Partnership Committee ReportBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT 1 Item No. 5.B. For Meeting of: December 4, 2018 ITEM TITLE: Council Partnership Committee report SUBMITTED BY: Cliff Moore, City Manager SUMMARY EXPLANATION: At its November 16 Partnership Committee meeting, members discussed the following items which they wanted to share with the full Council: 1. A recommendation from the committee regarding a recent request from the Seasons regarding the outstanding balance from a 2009 loan from the City (CDBG Fund) to the Seasons. 2. A discussion regarding the December 7 meeting with the local legislative delegation. 3. Informing Council that a follow-up email re: the N 1st St listening session has gone out which outlines construction schedules, written responses to a number of questions that were asked at the session and an alert that the next in person meeting will be scheduled in January. The January meeting will allow time for construction updates and time for those in attendance to discuss the possibility of establishing a local N 1st St Merchants Association. ITEM BUDGETED: STRATEGIC PRIORITY: APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Seasons proposal 11/10/2018 Type Cover Memo 0 N 1st street 0 N lst street listening session 11/16/2018 Coyer Memo 11?2012018 Coyer Memo 2 THE SEASONS PEIZ*FORMANCE HALL Pa`6xnxaki Iut riuExecutive Director |0|N.NarkexAve Yakima, WA88Q0| 509+451'1888 November 14, 2018 Carmen Mendez Yakiina Cit Council 120 2nd Street Yakima, \yA989O| Dear Carmen, It was my impression from our meeting last week with the City Manager, that you and the City Council urider the purview of the Partiierships Committee might entertaiii the following proposal. The proposal has features which similar, but not identical, to what 1 was suggesting regarding TIie Seasons' debt to the City ofYakima at our meeting. Attached is a short summary of a proposal and a .pdfoudining the re -structuring being irnplemented atThe Seasons over the next six rnonths or so. Thank you for your consideration... Sincerely yours, J. Patrick Strosahl 4 Dealing with Debt at The Seasons Performance Hall Problem Statement: Because of The Seasons recurring cash flow problems, it is essential for the organization to make a leap from a surviving, but not prospering, arts organization to a stable, viable non- profit that can take its place as a permanent institution. This transformation would yield significant benefits the city and region and its emerging economic profile as an arts/wine/ ale destination. In addition it would create a repair and replacement budget to maintain one of the key historical buildings in Yakima. One key recurring debt that can feel crippling each time it comes around is the $20,000 mortgage payment to The City of Yakima. Proposal: This proposal contemplates a true partnership between the City and The Seasons which alleviates the debt problem of the recurring payment in exchange for the City of Yakima becoming one ownership partner in a newly proposed non-profit facility ownership group (The Seasons Performance Hall non-profit). It is contemplated that this group will purchase The Seasons on favorable terms in exchange for helping continue and support the mission of a separate music -presenting non-profit, The Music of The Seasons. The City Manager has documented a $214,000 debt still being paid off by The Seasons. This proposal asks that the City invest all or a portion of that debt into an ownership share. The minimum investment currently being offered in the donor community is $100,000. The total purchase price being offered to this ownership group is $600,000 for an asset that was Commercially appraised at $1.6 million in 2009, prior to code upgrades to all areas of the building. Our proposal is not contemplating any additional money, but the conversion of its HUD Loan to an ownership share, which we understand from our discussion might be tantamount to the same thing. What the City Gets: The benefit to the City would be enhanced stability for an asset, similar to the Capitol Theater, that so many of all cultures and ages in the city would be bereft if they had to do without. It would give the City transparent knowledge of, and a measure of ownership control over, the direction of The Seasons and its associated music presenter group. In addition, the combination of the two non -profits would be charged with financing or arranging near constant concert offerings appealing to all sectors of the Yakima region's musical and cultural tastes as well as drawing wine tourists from their hotels into the city. This would enhance the current branding of The Seasons as a place where "Something's always happening..." A $100,000 ownership share also provides that share access to 10 or more full use dates a calendar year, which could be used for public meetings, city/non- profit partnerships, or applied to roughly 50 Diversion Court dates a year, etc. $200,00 would convert to 20 full dates according to this calculation. Logistics: It is our understanding, based on a conversation with the City Manager and Councillor Carmen Mendez last week, that a "conversion of the HUD Loan to grant status" may be a misnomer. It seems that to preserve HUD funding as a resource for future loans, any loans that are forgiven or converted must be replaced with monies\ from the general funds of The City. What we are proposing is not a huge transfer of funds in this regard, but it comes in a year of fiscal caution. Yet funds were allocated for participation in the Plaza projected for 10 times this amount, and it is arguable that, in terms of bringing people downtown into our core, The Seasons impact is at least as important, and definitely more constant in its impact on the Yakima Cultural Renaissance. 5 We fervently hope the Partnerships Committee will commit to this partnership and be a part of a community -wide effort to stabilize and create success for one of the most important arts organizations to emerge in Yakima since the turn of the century. Thank you for considering our request. We would be happy to answer any questions and exchange further information at the Committee's request. 6 Clear Tee, Sonya From: Beehler, Randy Sent: Friday, November 16, 2018 12:42 PM To: Beehler, Randy Subject: North 1st Street Revitalization Project Update Attachments: North 1st Street August 2018 Listening Session Question -Answer Summary.docx Thank you for taking time to be part of the North 1St Street Revitalization Project Listening Session that took place in late August. The large turnout was extraordinary and the input provided by the people who attended the session was helpful and truly appreciated. Based on that feedback, the City has already made several design modifications to the project. The City of Yakima is committed to providing you with information about the revitalization project on a regular basis so that you are aware of how things are progressing. The primary method the City will use to communicate with you is e-mail, although in-person sessions will also be part of the information mix. If you know someone who was not at the listening session but would like to be included in the regular e-mail updates about the project, please have them contact me by e-mail (randy.beehlerPyakimawa.gov) or by phone (509- 901-1142) and I'll add them to the list. Attached is a summary of the questions asked during the listening session and (in italics) responses to those questions that were provided by City staff during the listening session. As was discussed at the listening session, Phase 1 of the revitalization project is scheduled to get underway in spring 2019. Since the listening session, the City has completed the process of "obligating" federal money that will pay for the bulk of Phase 1. "Obligating" the federal money simply means that the City has notified the federal government that the project the funds were provided for is ready to go, thereby securing the federal money. That is a big step forward and one to celebrate. Requests for contractor bids on Phase 1 will be issued soon. Bids will be opened just after the first of the year and a contractor will be chosen shortly thereafter. Construction on Phase 1, which will involve improvements being made between Highway 12 and N Street, is scheduled to get underway in spring 2019, possibly as early as mid-March, and be completed near the end of 2019. More information about Phase 2 and Phase 3 will be provided as the process progresses. Patience will be needed while construction is underway on all of the phases of the North 1St Street Revitalization Project. This is a big project and the disruption will be noticeable. However, the City, with the cooperation of property owners and business owners, will make every effort to make whatever inconvenience results from the project as minimal as possible. The City is planning on conducting an information session in mid-to-late January to provide an in-person update on Phase 1 of the North 1St Street Revitalization Project. Discussion of the potential formation of a North 1st Street merchants group will also be part of that information session. The specific date, time, and location of the January information session are still being determined. Please let me know, by responding to this e-mail, if you would be interested in attending an in-person project information session in mid-to-late January. While regular updates will be provided to you by e-mail, if you have questions or need more information about the project at any time, please get in touch with me by e-mail (randy.beehleryakima.wa.gov) or by phone (509-901-1142). If I can't answer a question or share needed information immediately, I'll do so as quickly as possible. 1 7 Again, thank you for your interest in the North 1St Street Revitalization Project. Look for more project updates coming your way. Take care. Randy Beehler Communications & Public Affairs Director City of Yakima, Wa. Cell — 509-901-1142 2 8 Comments/questions from Yakima City Council listening session on August 30th, 2018 North 1st Street Revitalization Project (Answers shown in italics) Economic development: • Commercial access on North First Street — Roadrunner — City staff met with Roadrunner owner after the session to discuss design details. • Incentivizing property ownership/business? - Infrastructure development is the key. • Review project objectives - Moving goods/people or facilitating friendly neighborhood environment? Does it aim to enhance aesthetics or flow of traffic? — The project both facilitates better movement of goods and people (traffic flow) and improves the neighborhood environment (aesthetics). Project construction, maintenance: • Is there a maintenance plan? - Project designed to require the least costs to maintain. • Design restrictions on private property? - No, not requiring a planting plan. • Why not stipulate design standards? - Legal issues with private property rights...however city is happy to work with neighborhoods wanting to pursue design standards. • Impacts on other City revenue streams? — No. Rate increases are not anticipated. • Plans set in stone? - No, but they need to be finalized by November. • Why are water/wastewater reserve funds being used? Are they being used to retire debt? Is there a plan to pay the funds back? - A key part of the project is about improving utility infrastructure. Utility reserve funds are being used for utility improvements. The City will not be borrowing money for utility infrastructure improvements. • What was promised? Contingencies, are they contractual or vague? - State and federal money is earmarked for Phase 1 of the project, but there are some time constraints attached to that funding. Phase 1 is fully funded, which is why it will be constructed first. • How many utilities are cooperating? — All utilities will all be offered opportunities to install when trenches are opened. All utilities are being encouraged to take advantage of that opportunity. • What is the cost of removing power poles, cost to property owners? - Poles will be moved back from their current position, but won't be removed. Utilities and the City will share the cost of moving the poles. Property owners will not bear any cost of moving the poles. • Are fiber optics available on North 1St Street? - Yes. • Will there be empty conduit to facilitate utility installation? - Yes. • Artwork at entrances to the project? - That hasn't been discussed. Public safety/traffic: • Police presence, police presence at night — crime/homelessness issues? - YPD is recruiting new officers, using data -driven research, bicycle officers, etc. to improve its North 1St Street presence. Eyes on the street? - Police are working within legal constraints. It is not a crime to loiter on public property. Long term goal is to implement Neighborhood Resource Officers...similar to the School Resource Officer model. 9 • Presence of Union Gospel Mission/plans to address issues? - Again, loitering is not a crime on public property. Police are bringing in resource people to address mental health, chemical dependence, etc. issues. Union Gospel Mission staff wants to engage with people it serves throughout the day and with the neighborhood. UGM plans an outreach to help clean up neighboring properties. • Can the pedestrian light by UGM be moved to the north? - Yes, it can be moved. • Crosswalk improvements/emphasis? - No additional crosswalks are planned. • Bike lanes: Regular from I Street to R Street, and protected bike lanes south of I Street? No, all bike lanes will be regular. • Will there be 4 lanes for the entire corridor? — Yes. • Losing turn lanes? - Generally, no. Only less -used turn lanes, based on traffic studies, will be removed. • Any problems with fire suppression/drinking water from the same pipe? - No. It's not abnormal, and actually cost effective, to use the same pipe for drinking water and fire suppression. • What can property owners do to help address blight? — Property owners can pay attention to outdoor lighting design, special paints can deter graffiti, ornaments are available for outside furniture to discourage loitering. Property owners are encouraged to connect with police and City code enforcement to learn how best to use design to deter blight. • How about a foot patrol on North 1St Street? - Bike patrol have been proven to be more effective and cover more ground while getting officers out into the community. • What can we do besides calling 911 regarding homeless issues? — Calling 911 is OK for reporting issues related to homelessness. All calls are recorded and, by receiving calls for that specific type of assistance, can help police determine if there is a trend in a specific area. Unaddressed comments/questions: • How does North 1St Street revitalization fit in with the East West Corridor project? • Possibility of forming Business Improvement District? • Condemning properties/code enforcement.