CITY COUNCIL SPECIAL MEETING August 24, 2015 5:30 p.m.
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CITY COUNCIL SPECIAL MEETING August 24, 2015 5:30 p.m.
CITY COUNCIL SPECIAL MEETING August 24, 2015 5:30 p.m. Multipurpose Room of Municipal Annex 1304 W Main Blue Springs, Missouri PLEASE NOTE: Anyone wishing to address the Mayor and Council, either in a Public Hearing or in the Visitors Section of the Agenda, must fill out a Speaker’s Appearance Form. Forms are located at the entrance of the Multipurpose Room. After completion, the form is to be given to the Assistant City Administrator. 1. Call meeting to order 2. Pledge of Allegiance 3. Motion to Renew support for The Gardens of Blue Springs 4. Presentation – The Gardens of Blue Springs 5. Adopt Resolution No. 60-2015 supporting The Gardens of Blue Springs 6. Adopt Resolution No. 61-2015 regarding local control 7. Mayoral Announcements Thoughts to Ponder 8. Visitors 9. Adjourn Miscellaneous Items Planning Commission Meeting – Monday, August 24, 6:30 p.m., Municipal Annex, 1304 W. Main Parks & Recreation Commission Meeting – Tuesday, September 1, 6:00 p.m., East Conference Room of City Hall, 903 W. Main Street Labor Day Holiday – City Offices Closed – Monday, September 7 Public Safety Citizens Advisory Board Meeting – Tuesday, September 8, 6:00 p.m., East Conference Room of City Hall, 903 W. Main Street City Council Meeting – Wednesday, September 9, 6:30 p.m., Municipal Annex, 1304 W. Main TO: Mayor, City Council, Department Directors, and Press FROM: Eric Johnson City Administrator DATE: August 21, 2015 SUBJECT: Agenda Explanations Item 3 – Motion to Renew Consideration of a Motion to Renew the Resolution Regarding City support for Rainen Companies, LLC’s Application for Low Income Housing Tax Credits (LIHTC) for The Gardens of Blue Springs development project. Refer to the Council Information Form from City Attorney, Nancy Yendes, for further information. Item 4 – Presentation – The Gardens of Blue Springs Rainin Companies, LLC will share a PowerPoint presentation regarding The Gardens of Blue Springs. Item 5 – Resolution supporting the Gardens of Blue Springs Resolution will support Rainen Companies, LLC’s application for Low Income Housing Tax Credits with the Missouri Housing Development Commission for The Gardens of Blue Springs senior housing development. Refer to Council Information Form from Deputy City Administrator, Adam Norris, for further information. Item 6 – Local Control Resolution will express the concern for legislative actions that erode local control and abilities to react to local needs. Refer to Council Information Form from Mayor Carson Ross for further information. Council Meeting Date: 8/24/2015 Agenda Item #: 3 Page 1 of 2 CITY OF BLUE SPRINGS CITY COUNCIL INFORMATION FORM DATE: August 20, 2015 SUBMITTED BY: Nancy Yendes Ordinance Agreement Resolution Discussion DEPARTMENT: City Attorney Presentation Rezoning Public Hearing Other ISSUE/REQUEST Consideration of a Motion to Renew the Resolution Regarding City support for Rainen Companies, LLC’s Application for Low Income Housing Tax Credits (LIHTC) for The Gardens of Blue Springs development project. BACKGROUND/JUSTIFICATION On August 17, 2015, the developers of The Gardens of Blue Springs requested the City Council support its application for Missouri Housing Development Commission (MHDC) LIHTCs to develop a mixed-income, age-restricted housing development. City Council considered such request; the motion to adopt Resolution No. 58-2015 failed to gain a majority of the Council’s votes. A Council member on the prevailing side of the vote has asked that the Council review the Resolution that was not adopted on August 17th. A motion to reconsider is not in order as it may only be made during the meeting at which the matter was voted. For the City Council to again consider this Resolution at a different meeting, it must first vote on a motion to renew the Resolution that was defeated. Such a motion does not adopt the Resolution, but only brings it back up again for discussion and a vote. If Council wishes to revisit the Resolution, Staff is requesting that a new Resolution number be used for purposes of the minutes and records of the City Council and the motion set out below does that. To renew the Resolution for new discussion and a vote, the following motion by any member of the Council would be appropriate: I move that the City Council renew consideration of a Resolution Supporting Rainen Companies, LLC’s Application for Low Income Housing Tax Credits for The Gardens of Blue Springs project previously numbered as Resolution No. 582015, which was not adopted for failure to obtain a majority of votes at the August 17, 2015 meeting of the City Council, and that the renewed Resolution be given a new number for consideration for purposes of the minutes of this body. The motion may be seconded by any member of the Council. The motion is made in this manner because it is treated as a motion to add new business to the agenda. If this motion is not made and adopted, Agenda items 4 and 5 relating to The Gardens request would not be taken up. STAFF RECOMMENDATION If Council wishes to revisit the matter presented in Resolution No. 58-2015, the motion should be made, seconded and adopted. Rev. 6/01/2015 Council Meeting Date: 8/24/2015 Agenda Item #: 3 Page 2 of 2 LIST OF REFERENCE DOCUMENTS ATTACHED 1. None Requesting Director: Legal: Rev. 6/01/2015 REVIEWED BY Budget: City Administrator: Council Meeting Date: 8/24/2015 Agenda Item #: 4 and 5 Page 1 of 2 CITY OF BLUE SPRINGS CITY COUNCIL INFORMATION FORM DATE: August 20, 2015 SUBMITTED BY: Ordinance Agreement Adam Norris DEPARTMENT: Administration Resolution Discussion Presentation Rezoning Public Hearing Other ISSUE/REQUEST Presentation and consideration of a renewed resolution supporting Rainen Companies, LLC’s application for Low Income Housing Tax Credits (LIHTC) with the Missouri Housing Development Commission (MHDC) for The Gardens of Blue Springs senior housing development project. BACKGROUND/JUSTIFICATION On November 17, 2014 the City Council approved Ordinance 4519 authorizing the White Oak TIF Plan (Redevelopment Plan) and projects, establishing a redevelopment area, and designating Development Associates, LLC as the developer. The Redevelopment Plan provides for the redevelopment of the designated area in two projects—Redevelopment Projects A and B. Rainen Companies, LLC’s proposed project is consistent with Redevelopment Project B of the Redevelopment Plan. The proposed project would ultimately consist of a 180 unit mixed-income, senior apartment community at 1132 SW Luttrell Rd (White Oak Plaza). Buildout would consist of three phases each with 60 units. After the initial phase, the second phase would commence two years later and the third phase would likely commence in the preceding two years. The proposed project meets several of the goals and objectives of the Comprehensive Plan: Address the need for expanded housing choice that can adequately meet demand from the City’s aging population which is projected to continue to grow. Convert obsolete commercial properties for residential use. Locate housing within ½ mile of a transit stop. Redevelop this specific area of White Oak Shopping Center into High Density Residential. The applicant, Rainen Companies, LLC is applying for Low Income Housing Tax Credits with MHDC and requests the support of the City in its application. Representatives from Rainen Companies, LLC and the developer of the White Oak redevelopment project will be available to make a presentation and address any questions. Contractor: Amount of Request/Contract: Funding Source/Account #: Rev. 6/01/2015 FINANCIAL IMPACT N/A Council Meeting Date: 8/24/2015 Agenda Item #: 4 and 5 Page 2 of 2 PROJECT TIMELINE Estimated Start Date Estimated End Date N/A STAFF RECOMMENDATION Staff recommends approval OTHER BOARDS & COMMISSIONS ASSIGNED Name of Board or Commission: City Council Date: August 17, 2015 Action: Denial of Proposed Resolution Name of Board or Commission: City Council Date: November 17, 2014 Action: Approval of Ordinance 4519 Name of Board or Commission: Tax Increment Financing Commission Date: August 28, 2014 Action Recommend Approval of Redevelopment Plan, Redevelopment Area, and Redevelopment Projects. LIST OF REFERENCE DOCUMENTS ATTACHED 1. Presentation from Rainen Companies, LLC 2. Letter from Rainen Companies, LLC dated August 11, 2015 3. Proposed Resolution supporting Rainen Companies, LLC’s application for Low Income Housing Tax Credits for construction of The Gardens of Blue Springs in the White Oak Redevelopment Area. IF CONTRACT REQUIRED: 1. E-Verify Affidavits Required? Parent Company: 4. Contract Executed? 5. Affidavits Executed Requesting Director: Legal: Rev. 6/01/2015 REVIEWED BY Budget: City Administrator: The Gardens of Blue Springs A proposed 180 unit mixed-income, age restricted to households aged 55+, multifamily housing development from Rainen Companies, LLC Building Rendering Site Plan Building Layout and Unit Mix Unit Layouts Phase 1 Unit and Rent Mix Utility Annual Gross Rent Per Sqft. Unit Description # Bedrooms #Units Affordable Units Allowance Net Rent Gross Rent Possible Rent 1BR 1 3 0 $85 $913 $998 $32,868 $1.10 1BR 1 6 6 $85 $676 $761 $48,645 $0.81 1BR+Den 1 5 0 $85 $1,010 $1,095 $60,588 $0.99 1BR+Den 1 10 10 $85 $727 $812 $87,247 $0.71 2BR 1BA 2 5 0 $112 $1,020 $1,132 $61,188 $1.01 2BR 1BA 2 10 10 $112 $737 $849 $88,447 $0.73 2BR 2BA 2 6 0 $112 $1,114 $1,226 $80,208 $1.00 2BR 2BA 2 15 15 $112 $824 $936 $148,385 $0.74 $0 $0 $0 $0 $0 $0 Total 60 41 $607,575 Project Details 180 unit mixed-income, seniors apartment community Comprised of up to 70% affordable units and 30% market rate units. Phase 1 is 68% affordable and 32% market rate. Age restricted to households of 55+. Phased project to be built in three phases totaling $36 million. Phase 1 will be a $12 million, 60-Unit development. Phase 2 and Phase 3 would also be 60 units each. Each building will include a craft room, game room, fitness center and library. Addresses the significant and growing demand for seniors housing in Blue Springs. Our market study indicates pent up demand for 369 affordable and 82 market rate seniors apartments in the Primary Market Area (Blue Springs City Limits). Will be an especially attractive place to live, being part of a mixed use development next to a brand new Cosentino’s Price Chopper. Requires Federal and State Low Income Housing Tax Credits awarded by MHDC. The market study confirms that a purely market rate development is not feasible. Financed with Low Income Housing Tax Credits (LIHTCs) and US Bank/MHDC debt. No Section 8 financing. No City financial resources required. Economic Impact Replaces existing blight with attractive and valuable improved property. Utilizes the portion of the White Oak site that is least conducive to commercial development. Phase 1 is a $12 million investment which will create 54 new permanent construction jobs and 2.5 new property management jobs. $36 million total investment for Phase 1, 2 and 3. $150,000-$180,000 or more in total additional property taxes. 243 total seniors residents retained (assumes 291 bedrooms as shown on the building layout plan, less the 2nd Bedroom in the 48 2BR 1BA Units). $8.75 million in retained income/spending power for the area (assumes conservative estimate of $36,000/person). Allows Blue Springs seniors to age in place, in new, high quality housing, close to amenities and their social networks/families. Our market study indicates significant pent up demand for affordable and market rate seniors apartments in the Primary Market Area. Rainen Companies, LLC A Proven Track Record with Seniors Mixed Income Housing The proposed Gardens of Blue Springs project is modeled after Rainen Companies’ highly successful Gardens at Northgate Village development, a four phase, 318-unit mixed-income seniors property in North Kansas City, Missouri. Winner of a 2013 Clay County EDC Keystone Award, the property is part of the larger, ULI Development of Distinction and Capstone Award winning Northgate Village, a 55-acre mixeduse, infill redevelopment. Photos of the Gardens at Northgate Village are included in the slides that follow. Rainen Companies, LLC have been awarded tax credits by MHDC on each of the 4 phases at Northgate. The firm has established a great reputation with MHDC for delivering high quality mixed income seniors housing. Testimonial “My name is Bill Sanders, my wife and I have leased an apartment here at the Gardens of Northgate Village Senior Living Complex for almost seven years. We could not be more pleased with our decision to move into our apartment. The property is secure, well maintained and the apartment staff are always prompt and helpful when a question comes up. As a City Councilman here in North Kansas City I cannot remember an issue with this property.” – Bill Sanders, NKC City Councilman and Gardens at Northgate Resident Phase 1 – 114 Units Phase 2 – 66 Units Phase 3 – 78 Units Phase 4 – Groundbreaking October 2015 60 Units The Surrounding Neighborhood Market Rate Apartments and Homes from $210,000-$325,000. This proposal is consistent with the TIF Redevelopment Plan unanimously approved by the TIF Commission on August 28, 2014 and the City Council on November 17, 2014 Introduced by Councilman ___________ Resolution No. 60-2015 A RESOLUTION SUPPORTING THE GARDENS OF BLUE SPRINGS’ APPLICATION FOR LOW INCOME HOUSING TAX CREDITS WHEREAS, The Gardens of Blue Springs is a proposed redevelopment of the property which is located at 1132 SW Luttrell Rd; and Whereas, The Gardens of Blue Springs is consistent “Project B” of the Redevelopment Plan for White Oak approved by the City Council by Ordinance 4519 on November 17, 2014; and WHEREAS, The Gardens of Blue Springs plans to apply to the Missouri Housing Development Commission (MHDC) for Low Income Housing Tax Credits; and WHEREAS, the City of Blue Springs supports this application. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BLUE SPRINGS, MISSOURI, as follows: 1. The City hereby expresses its support for The Gardens of Blue Springs’ application to the MHDC for Low Income Housing Tax Credits to redevelop Project B of the Redevelopment Plan for the area currently known as the White Oak Plaza shopping center. PASSED by the City Council of the City of Blue Springs, Missouri, and approved by the Mayor of Blue Springs, this 24th day of August, 2015. ________________________ Carson Ross, Mayor ATTEST: _______________________ Sheryl Morgan, City Clerk Council Meeting Date: 8/24/2015 Agenda Item #: 6 Page 1 of 2 CITY OF BLUE SPRINGS CITY COUNCIL INFORMATION FORM DATE: August 19, 2015 SUBMITTED BY: Ordinance Agreement Mayor Carson Ross Resolution Discussion DEPARTMENT: Council Presentation Rezoning Public Hearing Other ISSUE/REQUEST To approve a Resolution expressing the concern for legislative actions that erode local control and abilities to react to local needs. BACKGROUND/JUSTIFICATION Missouri governmental structure is comprised of state and local entities with each having certain responsibilities and duties with respect to their residents and voters. In the past, Missouri as a State has been supportive of local governance and particularly home rule cities. Missouri was the first state in the union to allow the creation of charter cities by a provision in its 1875 Constitution. In 1971, the voters of Missouri expanded the class of city that could be converted to a Constitutional Charter City. In 1994, the voters of Blue Springs affirmatively elected to have a Constitutional Charter City form of government and thereby to have all the rights that self-governance entails. By choosing to reside in a Constitutional Charter City, the residents, through their locally elected officials, are permitted under the Missouri Constitution to make choices for how they will be governed as long as the choices are consistent with the State Constitution and applicable laws. In the recent past there has been a trend by the General Assembly to intrude into areas that were previously left to local choice. Senate Substitute No. 2 for House Committee Substitute for House Bill No. 722 (hereinafter “HB No. 722”) is an example of this type of legislation that removes choice from local voters. This Resolution expresses the concern the City Council has with respect to the continued eroding of local control and voter choice over how the residents will be governed. The Resolution also asks that the General Assembly not override a gubernatorial veto of the Bill as a means of honoring the intent and letter of the State Constitution in creating home rule powers. Contractor: Funding Source/Account #: Funding Source/Account #: FINANCIAL IMPACT N/A PROJECT TIMELINE Estimated Start Date N/A Years and Months Contract in effect Rev. 6/01/2015 Estimated End Date Number of times renewable Council Meeting Date: 8/24/2015 Agenda Item #: 6 Page 2 of 2 STAFF RECOMMENDATION OTHER BOARDS & COMMISSIONS ASSIGNED Name of Board or Commission: N/A Date: Action: LIST OF REFERENCE DOCUMENTS ATTACHED 1. Proposed Resolution Requesting Director: Legal: Rev. 6/01/2015 REVIEWED BY Budget: City Administrator: Introduced by Councilman_______________ Resolution No. 61-2015 A RESOLUTION EXPRESSING CONCERN FOR LEGISLATIVE ACTIONS THAT ERODE LOCAL CONTROL AND ABILITIES TO REACT TO LOCAL NEEDS WHEREAS, the State of Missouri governmental structure is comprised of governmental entities at the state and local level with differing responsibilities and abilities with respect to the residents of the entity; and WHEREAS, historically, certain areas of control were exercised by either the state or local government based on the ability to address problems and meet needs of respective residents such as the provision of police and fire protection, parks, streets and highways, water and sanitary utilities; and WHEREAS, to meet the needs and desires of its citizens, in 1875 Missouri became the first state to allow for the right of the voters to form home rule cities through a Constitutional provision, and the voters have since enjoyed the benefits of local home rule, allowing residents to fashion the type of communities they desire; and WHEREAS, in 1971 the voters of Missouri amended the Constitution to allow more communities to become home rule cities and enjoy the benefits of same; and WHEREAS, in 1994 when local voters elected to affirmatively select a charter city form of government under Section 19 of Article VI of the Missouri Constitution, they became entitled to certain rights of self-determination by virtue of Sections 19(a) and 22 of Article VI, and are entitled to exercise such rights for themselves; and WHEREAS, the City of Blue Springs is a Constitutional Charter City and its residents are entitled through their elected leaders to exercise all powers consistent with the Constitution and state law of Missouri; and WHEREAS, the General Assembly has the ability to enact legislation impacting how residents decide to govern themselves through their elected officials, with some Constitutional restrictions, but each time it does the rights of local voters and residents are diminished; and WHEREAS, the General Assembly continues to enact legislation which diminishes the ability of residents to act in their own best interests through their locally elected officials, and most particularly Charter Cities, and to tailor the community and government they desire; and WHEREAS, the General Assembly has in recent years enacted legislation that preempts local voter control over their own communities and Senate Substitute No. 2 for House Committee Substitute for House Bill No. 722 (hereinafter “HB No. 722”) is an example of such legislation; and WHEREAS, the Governor has vetoed HB No. 722, but it is possible the General Assembly may override such veto; and WHEREAS, the residents and voters of the Charter City of Blue Springs have a distinct interest in whether or not legislation such as HB No. 722 becomes law or similar bills continue to be introduced, amended and enacted which strip away areas of authority that are best left to local control by those closest to, and selected by, the voters. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BLUE SPRINGS, MISSOURI, as follows: SECTION 1. The City Council hereby states and reaffirms its support for the rights to self-determination in all areas of local concern for the voters and residents of Blue Springs, a Constitutional Charter City. SECTION 2. The City Council hereby requests the General Assembly to honor the intent and letter of the Missouri Constitution on home rule contained in Article VI, Sections 19, et seq., (Mo. Const. 1945 as amended in 1971), as well as Missouri’s long history of local governance, and not enact legislation which impinges and diminishes the peoples’ rights of selfgovernance at the local level. SECTION 3. The City Council hereby requests that the General Assembly not override the gubernatorial veto of HB No. 722 as recognition of the right of the people to self-governance. SECTION 4. That the Mayor is hereby empowered and authorized to send a letter on behalf of the entire City Council requesting that the veto of HB 722 not be overridden and to send such letter to the leadership of the General Assembly and the local area State Representatives and Senators together with this Resolution. SECTION 5. This Resolution shall take effect and be in full force immediately after its adoption by the City Council. PASSED by the City Council of the City of Blue Springs, Missouri, and approved by the Mayor of Blue Springs, this 24th day of August, 2015. CITY OF BLUE SPRINGS Carson Ross, Mayor ATTEST: Sheryl Morgan City Clerk