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Home My WebLink About08/08/2006 Special Meeting / Study Session 129 SPECIAL MEETING /STUDY SESSION AUGUST 8, 2006 - 8:00 A.M. - 9:30 A.M. COUNCIL CHAMBERS - YAKIMA CITY HALL 1. Roll CaII Present: Council: Mayor Pro Tem Neil McClure, presiding, Council Members Ron Bonlender, Micah Cawley, Norm Johnson, Bill Lover and Susan Whitman Staff: City Manager Zais, Assistant City Attorney Cutter and City Clerk in Training Moore Absent: Dave Edler (excused) 2. Study Session regarding Proposed Downtown Housing Property Tax Abatement Program Council Member Johnson reported on the Economic Development Committee's recent review of this program. They clarified the goals, guidelines and a definitive map that will be presented to the City Council at their next business meeting. Council Member Johnson described the boundaries and noted that the area can be redefined at any time. Bill Cook, Community Economic Development Director, described the target area. [Yakima Avenue from the railroad tracks to 7 Street and 7 Avenue, Yakima Avenue was the western border, and the eastern border was Martin Luther King Boulevard to Chestnut Avenue (frontage on both sides)]. Mr. Cook read the four main goals: • Create a downtown residential community • 500 new market -rate housing units • Stimulate the use of upper floors for residential • Mixed -use development or redevelopment, retail on lower floors and permanent housing on the upper floors The program guidelines were not revised and Mr. Cook reviewed them at this time. He also addressed a number of items where there had been misunderstandings. This program does not reduce existing property taxes. It postpones for ten years the assessment and collection on the new investment. Buildings over fifty years old must be reviewed by the Historic Preservation Committee. There had been a question about income eligibility, but that is not recommended. Staff is also not recommending that a certain number of .units be dedicated for low income or special populations at this time. It may be something to look at in the future once the downtown market is strong. Gary Bodenstab, Johnson - Barrow, Inc., described the plans for renovating the old Bon Marche building. They will change it to a 23 -unit condominium with commercial space on the lower floor. They will sell the residential condos and the commercial space as business condos. That approach was used successfully in Tacoma. 130 ADJOURNED MEETING — STUDY SESSION AUGUST 8, 2006 During discussion, questions were raised about how the parking requirement would affect apartment buildings already in existence that do not currently supply parking. Although that may have to be modified, current requirements state they would have to supply parking in order to receive the tax abatement. Parking was still a concern to Council members. Relocation costs were also discussed if it became necessary to relocate residents in order to renovate a building. The developer would have to find a suitable unit and would have to pay any difference between what the family was paying and what the new place costs for a five -year period. Also discussed were the requirements to meet current code with renovations. Assistant City Attorney Cutter clarified that one of the requirements on rehabilitation is that it must have code violations to qualify for tax abatement on the improvements. He also advised that if the map were to be changed, it could be done by adopting a new ordinance defining the new area. 3. Audience comments (9:15 a.m. — 9:30 a.m.) Mike Morrisette, President and CEO of the Greater Yakima Chamber of Commerce, spoke in support of the program. He believes that the number of units required should be higher than four and he recommended thirty units with a cost per unit of at least $150,000, including all soft costs. That is what other cities are doing and it insures no additional low income housing in the downtown corridor. He said, although that sounds cruel, setting a minimum cost is important to upscale the downtown. Jamie Stickel, Vice Chair of the Committee for Downtown and the Yakima Downtown Association, noted that there is a perception of a parking problem in the downtown area. There are 4,600 parking spots in the core business district and the city -owned lots are running at 47% occupancy. He believes we don't have a parking problem downtown. He strongly recommended taking the three -block parking restriction off. Elizabeth from Housing Help for Yakima said she was disappointed with the recommendation to specifically leave out affordable housing in the tax abatement area. She also warned that homeless people will be living on the sidewalk in front of the upscale housing. She commented that if a project is privately funded, the relocation requirements are hard to enforce. Craig Rath, a member of the Downtown Committee, and the Affordable Housing Chair for Central Washington Homebuilders, said we have a number of low income housing units in downtown today. If we are to make a viable and sustainable downtown, we need to bring in market -rate housing. Gary Bodenstab emphasized that time is of the essence because construction costs are going up. He said the competition is out there and if we bring people downtown, everything will follow. Barbara Greco, For A Better Tomorrow, said she understands the low income housing issue but that this is another topic. Encouraging economic development downtown will benefit all of us no matter what our economic level. 2 13'1 ADJOURNED MEETING — STUDY SESSION AUGUST 8, 2006 • John Christopherson, Committee for Downtown Yakima and Communications Director of Urban Place Consultant Group, said they have a goal of revitalizing the downtown . through many programs, but housing is currently the most important. The history of downtown revitalization shows it is most successful when the market base is the first to go downtown. He said it ultimately brings in the work force and affordable housing. A discussion regarding when and what to send to the Historical Preservation Committee ensued. Yakima County Assessor, Dave Cook, commented that he did not think it necessary to send every application to the Historical Committee. The property owner should be made aware that if they renovate the outside and maintain it, they may be eligible for historical exemption in addition to the multi -unit exemption. BONLENDER MOVED AND LOVER SECONDED TO ELIMINATE ITEM #8 REGARDING DEMOLITION AND EXTERIOR MODIFICATIONS TO BUILDINGS MORE THAN 50 YEARS OLD. The motion failed by a 3 -3 voice vote, Cawley, McClure and Whitman voting nay; Edler absent. BONLENDER MOVED AND JOHNSON SECONDED TO CHANGE THE WORDING IN ITEM #8 FROM "SHALL" TO "MAY ". The motion failed by a 4 -2 voice vote; Cawley, Lover, McClure, and Whitman voting nay. CAWLEY MOVED AND WHITMAN SECONDED TO DIRECT STAFF TO BRING FORWARD LEGISLATION ON THIS ITEM. The motion carried by unanimous roll call vote. 4. Adjournment The meeting adjourned at 9:40 a.m. ll READ AND CERTIFIED ACCURATE BY _ / ' 6U CIL MEMBER DATE L17�� COUNCIL MEMBER DATE ATTEST: CITY CLERK NEIL McCLURE, MAYOR PRO TEM Minutes prepared.by Linda Watkins. An audio and video tape of this meeting are available in the City Clerk's Office 3