1 00:00:55,600 --> 00:01:04,000 26. Madam clerk or Ms. Secretary will you please call the roll? Everyone as I call 2 00:01:04,000 --> 00:01:08,220 roll if you could just please confirm your attendance. Chip Collins. Present. Andy 3 00:01:08,220 --> 00:01:15,920 Bowman. Here. Tasha Battle. Absent. Hardy Dorsey. Present. Joe Housman. Here. Sonny Park. 4 00:01:16,420 --> 00:01:22,820 Here. Ed O'Connor. Absent. We have a quorum. Great. I need a motion to approve 5 00:01:22,820 --> 00:01:26,160 the meeting agenda, which is in front of you. 6 00:01:29,360 --> 00:01:33,360 Moved. I have a second. Second. Moved by Mr. Park, 7 00:01:33,560 --> 00:01:41,080 seconded by Mr. Housman to approve the meeting agenda on favor say aye. Aye. Opposed? The motion 8 00:01:41,080 --> 00:01:51,280 passes. I need a motion to approve the meeting minutes from last meeting. Are those in front of 9 00:01:54,400 --> 00:01:54,960 Yes. 10 00:01:55,760 --> 00:01:56,660 So moved. 11 00:02:02,930 --> 00:02:03,930 I have a second. 12 00:02:05,760 --> 00:02:05,960 All right. 13 00:02:06,060 --> 00:02:07,140 Moved by Mr. Dorsey. 14 00:02:07,700 --> 00:02:10,740 Seconded by Mr. Hausman for approval of the meeting. 15 00:02:11,200 --> 00:02:12,920 Meeting minutes all in favor say aye. 16 00:02:13,220 --> 00:02:13,680 Aye. 17 00:02:13,780 --> 00:02:13,960 Opposed? 18 00:02:17,320 --> 00:02:18,280 Motion passes. 19 00:02:19,380 --> 00:02:21,680 We'll now move to the next agenda item. 20 00:02:22,260 --> 00:02:23,120 New business. 21 00:02:23,820 --> 00:02:26,700 We have the introduction of a new staff member apparently. 22 00:02:26,980 --> 00:02:27,600 Yes, we do. 23 00:02:28,620 --> 00:02:30,780 We'd like to introduce you to Mary Adkins. 24 00:02:30,780 --> 00:02:36,260 Mary joined us in January after three, three and a half years with the Georgia 25 00:02:36,260 --> 00:02:40,180 State Senate as a policy writer in economic development and regulated 26 00:02:40,180 --> 00:02:45,000 industries, attended law school at the University of Kentucky and has been a 27 00:02:45,000 --> 00:02:50,760 great addition to our team and doing great work for us. And so you will see 28 00:02:50,760 --> 00:02:55,040 Mary's face around frequently. We've sort of splitting duties to some degree. 29 00:02:55,440 --> 00:02:59,040 We've got so much real estate work that we're doing in the city right now 30 00:02:59,040 --> 00:03:02,900 that I spend a lot of my time on real estate initiatives and Mary is spending 31 00:03:02,900 --> 00:03:08,500 her time on corporate recruitment and retention and servicing our business 32 00:03:08,500 --> 00:03:14,580 community of close to 6,000 businesses strong here in the city. So, welcome, Mary. 33 00:03:14,820 --> 00:03:20,520 Welcome, Mary. Glad to have you. Chip, I would also like to, of course, Jim Woodward, 34 00:03:20,660 --> 00:03:24,640 our council is here with us from Pope and Flynn. We all know Jim and I 35 00:03:24,640 --> 00:03:30,280 I would like to introduce Patrick Cason and Brett Bowden from Woodfield Development. 36 00:03:30,900 --> 00:03:36,660 They're going to be joining us today and they attended also our City Council meeting last 37 00:03:36,660 --> 00:03:41,880 Tuesday and we'll be talking about their project today on the North River Shopping Center site. 38 00:03:43,970 --> 00:03:44,970 Welcome, gentlemen. 39 00:03:45,210 --> 00:03:45,830 We're glad you're here. 40 00:03:46,870 --> 00:03:49,570 We look forward to hearing more about your project. 41 00:03:50,470 --> 00:03:58,270 Before we get to that, we have to elect our development authority officers for 2026. 42 00:03:58,530 --> 00:04:03,050 This is the first meeting we've had in 2026, so we have to do that. 43 00:04:04,230 --> 00:04:05,670 I have served as chair. 44 00:04:06,090 --> 00:04:07,850 Mr. Bowman has served as vice chair. 45 00:04:08,530 --> 00:04:13,630 I believe we're both willing to serve again, but I opened it up for nominations. 46 00:04:13,990 --> 00:04:15,530 Let's vote for vice chair first. 47 00:04:16,350 --> 00:04:18,110 I have a nomination for vice chair. 48 00:04:19,230 --> 00:04:26,310 Nominate Andy Baumann. Okay, I don't have a second of that nomination. We've got a nomination from Mr. 49 00:04:26,430 --> 00:04:34,370 Houseman, seconded by Mr. Dorsey for Andy Baumann as vice chair. Are there any other nominations? 50 00:04:36,010 --> 00:04:42,110 All in favor of Andy Baumann as vice chair, say aye. Opposed? All right, Andy, congratulations. 51 00:04:42,110 --> 00:04:54,830 Thank you. Now we need to nominate a chair for 2026. Is there a nomination? Yes, a current 52 00:04:54,830 --> 00:05:02,790 chair. Okay. And a second of that. Second. All right. Mr. Dorsey nominates some character 53 00:05:02,790 --> 00:05:09,830 named Chip Collins. Houseman seconds. All in favor say aye. Aye. Opposed? All right. 54 00:05:10,370 --> 00:05:13,370 For the record, I don't think there was any other mayors. 55 00:05:13,590 --> 00:05:18,430 I will remain. Oh, yeah, I didn't ask for any of a self-serving or were there any other 56 00:05:18,430 --> 00:05:23,650 nominations? No. Okay. All right. Well, I'm sure Mr. 57 00:05:23,710 --> 00:05:30,590 Bellman is happy to serve as vice chair and thank you for reallecting me to this position. 58 00:05:31,730 --> 00:05:39,810 Okay. Now we get to the meat of the meeting. And let's see. Well, first, before we 59 00:05:39,810 --> 00:05:47,270 Before we get to the real meat, I asked Chris to remind us of, since we haven't had a meeting 60 00:05:47,270 --> 00:05:50,610 in so long, to remind us of our mission statement. 61 00:05:50,890 --> 00:05:56,510 You will recall, I think we all know that we're authorized by a Statstorey authority 62 00:05:56,510 --> 00:06:02,630 from the state, but within that authority, we also, a few years ago, worked hard and 63 00:06:02,630 --> 00:06:06,910 developed a mission statement so that we have something to internally guide us. 64 00:06:06,910 --> 00:06:12,030 I mean, our first question is always, do we have the statutory authority to take whatever 65 00:06:12,030 --> 00:06:12,750 measure we're doing? 66 00:06:13,170 --> 00:06:20,290 But then second, the mission statement should be sort of our guide as to, you know, whether 67 00:06:20,290 --> 00:06:22,250 we want to vote in favor of something or not. 68 00:06:22,690 --> 00:06:23,570 So I'll just read it. 69 00:06:23,670 --> 00:06:28,390 The primary mission of our authority is to support city sponsored projects, redevelopment 70 00:06:28,390 --> 00:06:34,050 initiatives, economic development goals, educational institutions, and other nonprofit 71 00:06:34,050 --> 00:06:38,290 organizations within the city that's already accomplished it accomplishes this 72 00:06:38,290 --> 00:06:43,010 by providing taxable and tax exempt bond financing opportunities and other 73 00:06:43,010 --> 00:06:47,230 incentives pursuant to the Georgia Development Authority's law of where 74 00:06:47,230 --> 00:06:51,250 everybody's seen that mission statement but it's always good to reread it and 75 00:06:51,250 --> 00:06:55,350 remind ourselves especially since we're about to hear something in real 76 00:06:55,350 --> 00:07:02,130 time of what we're here for. Is there a discussion about I don't think it's 77 00:07:02,130 --> 00:07:07,270 It's an action item, but is there any discussion, is everybody pleased with the way the mission 78 00:07:07,270 --> 00:07:13,170 statement currently reads anything that jumps out to anyone that might need changing? 79 00:07:15,610 --> 00:07:19,250 Yeah, we worked hard on it, and I think this pretty much covers everything. 80 00:07:19,910 --> 00:07:22,750 All right, with that, let's move to the next agenda item. 81 00:07:23,550 --> 00:07:30,490 And that is a review of the tax abatement proposal for Woodfield Development in North 82 00:07:30,490 --> 00:07:31,350 River Apartments. 83 00:07:31,350 --> 00:07:35,070 And Chris Burnett, I believe, is going to make that presentation. 84 00:07:38,220 --> 00:07:38,580 Okay. 85 00:07:51,020 --> 00:07:57,260 And I'll acknowledge for the record that Tasha Paddle has just entered the meeting and 86 00:07:57,260 --> 00:07:59,040 we can record her as present. 87 00:08:00,220 --> 00:08:00,500 Welcome. 88 00:08:02,970 --> 00:08:08,830 So we are going to talk today about a project in terms of fulfilling the mission of our 89 00:08:08,830 --> 00:08:13,010 body here, the Development Authority, and how that correlates to initiative of 90 00:08:13,010 --> 00:08:13,390 the city. 91 00:08:13,390 --> 00:08:18,870 and this is sort of the epitome of one of those projects. The North River 92 00:08:18,870 --> 00:08:25,270 redevelopment, which is in North Sandy Springs. We're going to start out with a 93 00:08:25,270 --> 00:08:30,010 little history lesson. Andy will remember this, but going back as far as I 94 00:08:30,010 --> 00:08:38,230 believe it was 2016-2017, City Council appointed a North End task force to 95 00:08:38,230 --> 00:08:42,910 evaluate ways to stimulate growth in the North End of the city, which had 96 00:08:42,910 --> 00:08:49,530 been a number of years without any new projects done. That was followed later on 97 00:08:49,530 --> 00:08:54,210 by an engagement with a group called TSW, architectural and engineering firm, 98 00:08:54,370 --> 00:08:58,930 design firm that focused on four shopping centers in the north end of the 99 00:08:58,930 --> 00:09:05,650 city that are fairly old and were large enough sized pieces of land that 100 00:09:05,650 --> 00:09:10,010 could be ripe for redevelopment. So TS study did a study of those four 101 00:09:10,010 --> 00:09:17,110 properties including some concept designs for potential site work and let's look at North River 102 00:09:17,110 --> 00:09:22,450 in particular. So this is the property roughly, well not quite because some of it's been demoed, 103 00:09:22,670 --> 00:09:27,850 but this was the property at the time of the study. This was an image that was in TSW's report. 104 00:09:28,330 --> 00:09:32,950 This is a total of 13 acres of land to get your bearings. This is Roswell Road, 105 00:09:33,890 --> 00:09:39,690 Dunwoody Place comes in right here and just north of this site is the river. So this 106 00:09:39,690 --> 00:09:44,910 This is very close to the most northern point on Rosalind Road in terms of being in the 107 00:09:44,910 --> 00:09:45,850 city of Sandy Springs. 108 00:09:47,030 --> 00:09:49,670 I'm sure you've driven by this center plenty of times. 109 00:09:49,970 --> 00:09:52,070 It's currently anchored by a dollar general store. 110 00:09:52,930 --> 00:09:56,670 Sumat's restaurant, for those of you who might know that, has also been in there 111 00:09:56,670 --> 00:09:57,490 for a number of years. 112 00:09:58,650 --> 00:09:59,510 So let's look at the next. 113 00:10:00,250 --> 00:10:04,330 So with this piece of land, basically a rectangular piece of land, these were 114 00:10:04,330 --> 00:10:12,190 the ideas presented in TSW's study that was done in 2021. It calls for a variety of mixed 115 00:10:12,190 --> 00:10:20,570 uses, food hall with restaurants, multi-family, retail stores, basically anchored around a 116 00:10:20,570 --> 00:10:29,390 public park in the center of the property. Also some townhomes, some live work units. 117 00:10:29,950 --> 00:10:32,890 were all part of this concept drawing that they did. 118 00:10:33,450 --> 00:10:36,050 I don't think we'll see this, but this was the idea of the park 119 00:10:36,050 --> 00:10:38,630 and some of the buildings surrounding at this park 120 00:10:38,630 --> 00:10:39,730 fronting Roswell Road. 121 00:10:41,650 --> 00:10:45,290 So fast forward to concepts of group random. 122 00:10:45,430 --> 00:10:46,930 What we looked at was in 2021. 123 00:10:47,270 --> 00:10:49,990 In 2026, February of this year, 124 00:10:50,070 --> 00:10:52,050 we met with Mayor and Council on our retreat. 125 00:10:52,690 --> 00:10:54,350 And these were some concept drawings 126 00:10:54,350 --> 00:10:55,470 that were shared with them. 127 00:10:55,650 --> 00:10:56,670 So let's look at the next slide. 128 00:10:57,590 --> 00:11:02,070 First of all, this was a tactic you all may remember this site. This was the 129 00:11:02,070 --> 00:11:08,170 original site design once Woodfield got engaged in this project. The original 130 00:11:08,170 --> 00:11:12,410 fault was that multifamily would be on this portion of the property. This would 131 00:11:12,410 --> 00:11:17,350 be the southern section of the property. Orthale townhome units would be on the 132 00:11:17,350 --> 00:11:22,870 northern part and this was basically leaving the old retail that's there 133 00:11:22,870 --> 00:11:28,350 And it's been there for decades, including a dollar general store, which was in this 134 00:11:28,350 --> 00:11:29,410 center part of retail. 135 00:11:30,170 --> 00:11:35,810 And Patrick, it was 23,000 square feet, roughly, of retail that would have remained under this 136 00:11:35,810 --> 00:11:36,590 original plan. 137 00:11:37,390 --> 00:11:43,830 And it was like this in large part because the belief was that the retailers were there, 138 00:11:43,850 --> 00:11:46,410 that were there were going to stay for perpetuity. 139 00:11:46,410 --> 00:11:53,330 And to make a broader project work, he really had to take down all of the retail, meaning 140 00:11:53,330 --> 00:11:55,910 you had to buy out all of the leases that were there. 141 00:11:56,590 --> 00:12:01,930 And so it was believed that that was going to be very difficult and expensive to do, 142 00:12:02,030 --> 00:12:03,790 so this was the first concept drawing. 143 00:12:04,650 --> 00:12:11,810 Next slide will show what Matthew Amsbach, our city senior planner, conceived if we 144 00:12:11,810 --> 00:12:16,330 We could dream big enough to say, okay, if we could scrape the whole site, meaning the 145 00:12:16,330 --> 00:12:21,530 tenants that are there left, what could be done in place of the old retail that was originally 146 00:12:21,530 --> 00:12:22,050 drawn on? 147 00:12:23,230 --> 00:12:27,590 Incorporating the city park that had been designed in the TSW study in 2021. 148 00:12:28,410 --> 00:12:33,090 Doing retail, some jewel box restaurants here, some retail here as well. 149 00:12:33,950 --> 00:12:35,670 So that was Matthew's concept. 150 00:12:36,070 --> 00:12:40,830 We showed that to Mayor and Council in February and talked about if they would empower 151 00:12:40,830 --> 00:12:45,950 staff to move forward working with Insignia, the current landowner, and with 152 00:12:45,950 --> 00:12:51,030 Woodfield to determine can we get to a bigger vision than just leaving the old 153 00:12:51,030 --> 00:12:57,110 retail place. Next slide please. So let's look at what has transpired since the 154 00:12:57,110 --> 00:13:03,750 retreat in February of this year. This is probably one of the, if not the 155 00:13:03,750 --> 00:13:08,210 most recent, certainly a current design. What you see shaded here is now 156 00:13:08,210 --> 00:13:13,670 This contemplates the whole site being scraped. So all of the tenants moving out 157 00:13:15,150 --> 00:13:19,910 Everything coming down the whole 13 acres being scraped. This would be a city park 158 00:13:19,910 --> 00:13:25,710 This is shaded in sort of pinkish or mob. These are new retail buildings or restaurants 159 00:13:27,270 --> 00:13:32,950 These are the now the apartments so they stretch more into a little more of an L-shaped building 160 00:13:32,950 --> 00:13:37,810 these are still the town homes as was originally contemplated. So this is 161 00:13:37,810 --> 00:13:41,430 basically the center of sight this is an existing curb cut already on Roswell 162 00:13:41,430 --> 00:13:47,110 Road in there. So very much you know similar to what was designed back in 163 00:13:47,110 --> 00:13:52,270 2021 by TSW. Let's look at another image of that. You can see here the green 164 00:13:52,270 --> 00:13:57,630 space playground areas here. This is an outdoor pavilion with public 165 00:13:57,630 --> 00:14:01,950 restaurants, a jewel box restaurant here, additional retail and restaurant 166 00:14:01,950 --> 00:14:07,970 space there. These are the apartments with their swimming pool and common 167 00:14:07,970 --> 00:14:12,190 areas in the center and then these are the for sale town home units on the 168 00:14:12,190 --> 00:14:18,130 north end of the property. And the park itself would be the piece we looked at 169 00:14:18,130 --> 00:14:23,030 here is about 0.71 acres of land area but when you take into 170 00:14:23,030 --> 00:14:27,630 consideration the right of way which will also be heavily streetscaped it 171 00:14:27,630 --> 00:14:30,010 It ends up being close to about one acre in total. 172 00:14:30,950 --> 00:14:32,950 All right, next slide will show us 173 00:14:33,380 --> 00:14:36,130 what the development would look like under this scenario. 174 00:14:36,350 --> 00:14:38,810 Woodfield, WF would be the site developer. 175 00:14:39,410 --> 00:14:41,810 They would build and own the apartment units. 176 00:14:42,170 --> 00:14:43,570 There will be separate builders 177 00:14:43,570 --> 00:14:46,310 for the construction of the town homes and the retail. 178 00:14:47,350 --> 00:14:49,710 The tenant leases will need to terminate. 179 00:14:49,850 --> 00:14:51,770 All tenant leases will need to terminate. 180 00:14:52,110 --> 00:14:55,150 And the overall 13 acre site would be totally scraped 181 00:14:55,150 --> 00:14:59,970 prepped for new construction including the park project. So what would be 182 00:15:00,050 --> 00:15:07,670 Our proposed is Woodfield building 336 traditional stack-flight multifamily units. There were before 183 00:15:07,670 --> 00:15:13,290 sale product here. These simple townhomes, 85 units. We're not ready to talk about who 184 00:15:13,290 --> 00:15:18,250 the builder is yet. They've asked that we keep that quiet while they're continuing to work 185 00:15:18,250 --> 00:15:23,970 through a few issues. But it is, we know who it is, and it's definitely a builder who 186 00:15:23,970 --> 00:15:28,590 can deliver. They absolutely have the financial capacity and history to build the units 187 00:15:28,590 --> 00:15:36,270 if they proceed. Restaurants in retail space about 10,000 square feet of retail. I mentioned 188 00:15:36,270 --> 00:15:41,170 the outdoor covered pavilion and some bathroom space that would be built kind of overlooking 189 00:15:41,170 --> 00:15:46,710 the park area. As I mentioned the 0.71 acre park that would be built and funded by Woodfield 190 00:15:46,710 --> 00:15:52,170 and then deeded to the city after completion of the park. And Woodfield would also include 191 00:15:52,170 --> 00:15:58,410 70 public parking spaces there would be basically an inter-party agreement so the 192 00:15:58,410 --> 00:16:03,090 public parking would be available for patrons to the retail stores patrons to 193 00:16:03,090 --> 00:16:10,170 the park as well and we would have once the city took ownership of the park 194 00:16:10,170 --> 00:16:15,090 once it was deeded and conveyed to us and the city would manage and program 195 00:16:15,090 --> 00:16:19,330 the park from that point going forward so it would be our park would feel 196 00:16:19,330 --> 00:16:25,410 would build it and then deed it to us. Next slide will show us the estimated 197 00:16:25,410 --> 00:16:29,350 budget. It's about a six and a half million dollar project that includes 198 00:16:29,350 --> 00:16:34,390 hard cost of 3.9 million which there are budgeted items for playground 199 00:16:34,390 --> 00:16:38,770 equipment. It's also full architectural and signage and anything related to 200 00:16:38,770 --> 00:16:43,230 actually building the park. We've also estimated about 2.1 million in land 201 00:16:43,230 --> 00:16:48,550 value for that portion of the park, the land that would be deeded to the 202 00:16:48,550 --> 00:16:54,330 city post completion. And finally we've prorated the 70 public parking spaces 203 00:16:54,330 --> 00:16:59,130 because you'll park what about four spaces per thousand so you're gonna need 204 00:16:59,130 --> 00:17:04,030 about 40 parking spaces just to comfortably park the retail which would 205 00:17:04,030 --> 00:17:08,270 leave roughly between 25 and 30 spaces that would be more public in nature 206 00:17:08,270 --> 00:17:13,110 for park events. So while the parking is a good bit more expensive for 70 207 00:17:13,110 --> 00:17:18,270 spaces we said about 35% of the parking spaces would be some sort of 208 00:17:18,270 --> 00:17:23,970 earmark as available for park and public usage related to the city park. So we 209 00:17:23,970 --> 00:17:32,510 allocated $525,000 for that component. To incentivize Woodfield, compensate them 210 00:17:32,510 --> 00:17:36,830 for this project, which is to build the cost, I'm sorry, to build the park at 211 00:17:36,830 --> 00:17:40,710 their expense, buy the land at their expense, and then donate it to the 212 00:17:40,710 --> 00:17:45,730 city post completion. We're proposing really two different incentive 213 00:17:45,730 --> 00:17:49,710 makes this one is our traditional 10-year tax abatement. It would be only 214 00:17:49,710 --> 00:17:53,830 apartments only, would not include the retail, and cannot include the 215 00:17:53,830 --> 00:17:57,030 residential. Those are not eligible. The for sale 216 00:17:57,030 --> 00:18:02,170 residential are not eligible for abatements. The value of that on a net 217 00:18:02,170 --> 00:18:06,410 present value discounted basis is about 2.5 million dollars. 218 00:18:07,210 --> 00:18:10,930 City Council voted last Tuesday to also approve a waiver 219 00:18:10,930 --> 00:18:17,050 or a credit for what we call impact fees, which is about $4,400 per apartment unit. 220 00:18:17,450 --> 00:18:24,630 That total is about $1,525 in credit towards recreation impact fee waivers plus building 221 00:18:24,630 --> 00:18:28,490 permit fee waivers that are valued at about another $250,000. 222 00:18:28,870 --> 00:18:34,890 So when you put the total package together, it's on a net present value basis. 223 00:18:35,370 --> 00:18:39,330 It's about $4.3 million against a $6.5 million project. 224 00:18:39,330 --> 00:18:45,930 In real dollars, it's probably about $5.3 to $5.5 million in undiscounted dollars, but 225 00:18:45,930 --> 00:18:49,950 we discount it because those tax savings occur over a 10-year period. 226 00:18:50,330 --> 00:18:54,430 So they have to earn those out over the decade term of five months. 227 00:18:55,670 --> 00:19:01,550 The estimated net positive impact to the city, and this is net of the waiver of 228 00:19:01,550 --> 00:19:05,070 permitting and impact fees, is about $6.7 million. 229 00:19:05,070 --> 00:19:11,750 dollars. And the reason for that is right now this property is over a 10-year 230 00:19:11,750 --> 00:19:16,250 term if nothing were done on this site the city's portion of the taxes would be 231 00:19:16,250 --> 00:19:22,090 about 182,000 over a 10-year term. So that's not per year that's over the 232 00:19:22,090 --> 00:19:27,550 full duration of 10 years. Under this with the value of what will be on the 233 00:19:27,550 --> 00:19:32,270 site it's about a 200 million dollar total anticipated to praise value for 234 00:19:32,270 --> 00:19:36,890 the assets to be built on the site, the city's portion of the tax is over the next 10 years. 235 00:19:37,130 --> 00:19:40,590 Even netting out the abated piece is approximately $2 million. 236 00:19:41,350 --> 00:19:46,210 So it's about a 10-fold increase over the next 10 years of what we would currently 237 00:19:46,210 --> 00:19:47,990 receive if nothing were done on the site. 238 00:19:49,310 --> 00:19:54,010 Next slide will show us the spreadsheet. 239 00:19:56,350 --> 00:19:58,710 We ran our own spreadsheet as well. 240 00:19:58,950 --> 00:20:00,530 We're actually both very close. 241 00:20:00,530 --> 00:20:05,450 this is Ryan tax services which would field use and their calculations we 242 00:20:05,450 --> 00:20:09,010 have an in-house model they were very very close you'll see because of the way 243 00:20:09,010 --> 00:20:14,170 our tax abatement burns down you running this can you recording there's no way 244 00:20:14,170 --> 00:20:22,430 to make it bigger larger yeah this is probably a little tough I mean I'm not 245 00:20:22,430 --> 00:20:31,060 2020 let's see if we could blow that if you can't well so you know the way 246 00:20:31,060 --> 00:20:35,180 the tax abatement works is you start out once the project is completed and it's 247 00:20:35,180 --> 00:20:39,760 reached its basis, then in your taxes are sort of at full value at that point. 248 00:20:40,240 --> 00:20:46,140 Then in your first year, there's a 50% reduction in property taxes. In year two, 249 00:20:46,260 --> 00:20:52,700 it goes to 45%. In year three, it goes to 40%, and etc. It declines by 5% a 250 00:20:52,700 --> 00:20:57,720 year, burning to zero at the end of the 10th year. So it's going to be 251 00:20:57,720 --> 00:21:01,880 front-enloaded, obviously your greatest tax savings is going to be in your first 252 00:21:01,880 --> 00:21:07,540 full year. That's a $551,000 tax savings and you can see it stepping down 253 00:21:07,540 --> 00:21:15,120 each year because of the burn-off of the percentage. We ran into a net 7% net 254 00:21:15,120 --> 00:21:21,280 present value discount, about $2,530ish to $2,550ish on the net present value, 255 00:21:21,640 --> 00:21:26,220 again about 3.3 millionish if you don't do any discount and that's over 256 00:21:26,220 --> 00:21:27,340 with a 10 year charge. 257 00:21:29,680 --> 00:21:31,900 Any questions on that before we move on? 258 00:21:32,880 --> 00:21:35,880 So great to see that brighten up that notice in. 259 00:21:38,040 --> 00:21:41,380 Have you all done any estimate 260 00:21:41,380 --> 00:21:45,760 at the traffic count before and after the project? 261 00:21:46,720 --> 00:21:48,380 Sonny, I'm honestly, Chris, 262 00:21:48,480 --> 00:21:50,300 and I don't know if we did any evaluation. 263 00:21:50,620 --> 00:21:52,980 Roswell Rowe's got some pretty hefty traffic counts 264 00:21:52,980 --> 00:21:57,160 already, certainly this will add more population density, 265 00:21:57,160 --> 00:22:02,500 No doubt about it, but I don't know you all were not required to do traffic study in this site 266 00:22:02,500 --> 00:22:08,520 But sunny, I think given the size of Roswell Road, you know, it's four lanes right there with center-turn lanes 267 00:22:08,520 --> 00:22:16,100 If you're requiring about a traffic impact, I really think it's it's going to be relatively minimal because you've got such a large road already there 268 00:22:17,840 --> 00:22:19,420 Well, I'll go ahead 269 00:22:19,420 --> 00:22:21,620 I was going to ask if 270 00:22:21,620 --> 00:22:28,360 for the apartments and the townhomes. Are you thinking that it'll be residents 271 00:22:28,360 --> 00:22:34,080 that are already here maybe relocating or is that to bring in new residents into 272 00:22:34,080 --> 00:22:38,700 the city? So I think it will likely be a combination of the two. 273 00:22:40,880 --> 00:22:42,820 The town, well 274 00:22:42,820 --> 00:22:47,220 let's jump ahead then and then we may be able to talk a little further. Before we 275 00:22:47,220 --> 00:22:52,840 move before we move through. I've got two just two questions and then we can you 276 00:22:52,840 --> 00:22:54,080 know kind of break it up a little bit. 277 00:22:56,100 --> 00:22:58,160 Two things when I was looking at the 278 00:22:58,160 --> 00:23:04,300 PowerPoint before I came here, two things popped out. First the construction 279 00:23:04,300 --> 00:23:11,260 costs of the park $3.9 million for a less than an acre park seems really 280 00:23:11,260 --> 00:23:16,840 high. Where did that number come from? Are we in that number? So our parks and 281 00:23:16,840 --> 00:23:21,400 Director Brent Walker has been working with Woodfield's architectural team on the 282 00:23:21,400 --> 00:23:25,300 park design. One of the things you've got some site challenges, you know, this 283 00:23:25,300 --> 00:23:28,220 falls off pretty sharply from Roswell Road to you can have a series of 284 00:23:28,220 --> 00:23:32,860 retaining walls. They will be fairly sizable areas of playground space. We 285 00:23:32,860 --> 00:23:37,760 use probably the best materials available for building playgrounds. It's 286 00:23:37,760 --> 00:23:42,440 the rubber-sympathic material that you use, safer for kids if they fall. 287 00:23:46,460 --> 00:23:46,460 I 288 00:23:46,460 --> 00:23:53,920 equipment play equipment within the playgrounds. Heavy landscaping so but 289 00:23:53,920 --> 00:23:59,200 those numbers have been provided by Woodfields GC and you guys want to 290 00:23:59,200 --> 00:24:02,980 speak to this you're welcome to. I think Brent has felt like they are 291 00:24:02,980 --> 00:24:06,500 reflective of what it would cost us if we were going to build it as a city. 292 00:24:07,160 --> 00:24:13,900 And then the next question you had the net positive impact of the city at 293 00:24:13,900 --> 00:24:20,560 6.7 million dollars but you said that includes the park which you valued at 294 00:24:20,560 --> 00:24:24,980 6. something so is it fair to say most of the net impact value in the first ten 295 00:24:24,980 --> 00:24:29,200 years comes from that park not cash into the city? It is Chip yeah we talked 296 00:24:29,200 --> 00:24:33,620 about the benefits to the city from a tax perspective were about 10 about 2 297 00:24:33,620 --> 00:24:39,160 million dollars over the next 10 years and the cost of our waivers on the 298 00:24:39,160 --> 00:24:45,180 front-end or million 775. So a high percentage. The good news is, is that the 299 00:24:45,180 --> 00:24:51,320 increase in tax value and the revenue the city will receive, only slightly, but 300 00:24:51,320 --> 00:24:58,540 does exceed the value of the fees given up today. So, but it really is in the cost 301 00:24:58,540 --> 00:25:02,200 of having the park. And I don't think the addition of a new park is anything 302 00:25:02,200 --> 00:25:05,980 to sniff that. I mean I think it's a great thing. So, but I just wanted to 303 00:25:05,980 --> 00:25:07,980 I'm sure everybody was clear on that. 304 00:25:08,300 --> 00:25:08,840 And you had something? 305 00:25:08,840 --> 00:25:12,460 Yeah, so I appreciate Sonny's question on traffic. 306 00:25:12,560 --> 00:25:16,140 But would it also be fair to say that this is a less intense 307 00:25:16,140 --> 00:25:19,220 use than 100% retail, which it could otherwise? 308 00:25:19,980 --> 00:25:25,820 I mean, if this had been fully renovated retail, 309 00:25:25,980 --> 00:25:28,360 more of a hundred and something thousand square feet, 310 00:25:28,580 --> 00:25:30,940 which I'm just in round, it was somewhere between 100 311 00:25:30,940 --> 00:25:32,960 and 200,000 square feet if I had to guess. 312 00:25:33,220 --> 00:25:34,080 Yeah, I don't recall. 313 00:25:34,080 --> 00:25:38,140 I mean, you had the bowling alley, you had all that other stuff there that a residential, 314 00:25:38,460 --> 00:25:46,420 which is going to be an 85% residential use or more, is actually a lower intensity of 315 00:25:46,420 --> 00:25:52,300 use than a retail with lots of curb cuts, a vibrant retail with groceries and all that 316 00:25:52,300 --> 00:25:52,620 other thing. 317 00:25:52,880 --> 00:25:57,540 I have to say that wouldn't be one is an inferior, but I think there's less intense 318 00:25:58,280 --> 00:26:04,100 traffic use as a result of the substantial residential component as opposed to 319 00:26:04,100 --> 00:26:10,220 fully a retail deal here. I mean I'm hoping that, I mean we're hoping that 320 00:26:10,220 --> 00:26:13,620 people don't, people can drive to the park but we're hoping that people in 321 00:26:13,620 --> 00:26:17,440 this area are walking to the park and walking to the retail. I mean that's 322 00:26:17,440 --> 00:26:22,400 sort of the hope. Well certainly the residents, the apartment residents, 323 00:26:22,460 --> 00:26:25,840 but this to be very clear is a public park. This is not just for those 324 00:26:25,840 --> 00:26:30,700 residents. That's correct. It's fully public. One of the things I know that we've talked about 325 00:26:30,700 --> 00:26:37,900 with Brent and his team in Rec and Park is programming the park and you know we'll be doing what's 326 00:26:37,900 --> 00:26:44,580 Kristen a night market because that's sort of testing the waters on events but you know the 327 00:26:44,580 --> 00:26:51,500 key to not just having a place to go but for place making is our team the Parks and Rec team 328 00:26:51,500 --> 00:26:57,120 needs to evaluate how to utilize this park to really attract the community 329 00:26:57,120 --> 00:27:00,560 here, not just the residents that are living in development. The people that 330 00:27:00,560 --> 00:27:03,020 are, you know, all the residents, there's a lot of people that live in the 331 00:27:03,020 --> 00:27:08,640 North End. How do we get them into this park? Because right now, if they're 332 00:27:08,640 --> 00:27:13,760 going to a park, they may be going down to Morgan Falls, but in terms of 333 00:27:13,760 --> 00:27:17,400 having a place right there in the North End, this will sort of become 334 00:27:17,400 --> 00:27:24,420 the signature park I think. What can you do on 0.7 acres? What kind of activities could the city 335 00:27:25,140 --> 00:27:29,580 have? So that's a great question. I unfortunately don't know the size of the green. Kristen, 336 00:27:29,780 --> 00:27:34,760 you might. So one of the things that we looked at with Woodfield was programming that park, 337 00:27:34,840 --> 00:27:40,460 as Chris said. So first of all, there will be, we're looking at sort of like two contiguous 338 00:27:41,020 --> 00:27:45,020 playgrounds there. So that in and of itself is a big activity and then you have a smaller 339 00:27:45,020 --> 00:27:50,140 green space that will be adjacent to the retail there so folks can have their kids out playing 340 00:27:50,140 --> 00:27:54,680 while they're waiting or while they're eating or whatever that looks like but we've also looked at 341 00:27:54,680 --> 00:27:59,800 what this can look like if we want to do something like a market or a festival there. 342 00:28:00,140 --> 00:28:04,960 Something smaller it's not huge but it's enough space to do something like we're doing in the 343 00:28:04,960 --> 00:28:08,740 north end with that night market we can move that there once we own this space 344 00:28:09,560 --> 00:28:13,540 so that we have the we will have the room there to program that sort of thing as well. 345 00:28:14,380 --> 00:28:19,800 But we want, I mean, and I think Chip's question is the right one, a question. 346 00:28:20,300 --> 00:28:24,780 We actually, as the economic development authority, we want to place into consideration the conditions 347 00:28:25,380 --> 00:28:28,280 to support the retail and restaurants that are going in there, right? 348 00:28:28,640 --> 00:28:32,800 Like, I mean, I know that I go over to the perimeter area on the Dunwoody side. 349 00:28:33,560 --> 00:28:39,740 They literally took away some parking lot and put in a little center green around 350 00:28:39,740 --> 00:28:46,200 those superacus there and jennies and a couple of those restaurants and they're playing cornhole 351 00:28:46,200 --> 00:28:51,920 so it attracts people to the businesses that are going in there and that's what I saw as the value 352 00:28:51,920 --> 00:28:59,960 here was this is a way to support successful business in the north end. Certainly a component 353 00:28:59,960 --> 00:29:05,400 and you do see it in downtown Alpharetta when that was developed and Park was put with 354 00:29:05,400 --> 00:29:10,400 dual box restaurants around it, same as the case in downtown Woodstock, the 355 00:29:10,400 --> 00:29:15,440 Ashford Lane, which is where the Super League is now. Right, that green space with 356 00:29:15,440 --> 00:29:20,600 cornhole there. So it's being done in other places successfully and this 357 00:29:20,600 --> 00:29:27,340 would certainly help to engage and probably better promote the success 358 00:29:27,340 --> 00:29:32,440 of the restaurants that go in because it is especially being downgrade a bit 359 00:29:32,440 --> 00:29:37,380 from Roswell Road, it's still a busy road, but because you're below grades, I think it's 360 00:29:37,380 --> 00:29:38,240 going to feel safer. 361 00:29:38,640 --> 00:29:40,200 It's going to feel a little more renewed. 362 00:29:40,380 --> 00:29:44,100 It is below street level before the parking lot. 363 00:29:44,620 --> 00:29:45,240 Who's going to pay? 364 00:29:45,360 --> 00:29:47,360 Who's going to pay for the maintenance of the park on going? 365 00:29:47,740 --> 00:29:48,120 The city. 366 00:29:48,440 --> 00:29:49,600 The city will pay for the maintenance. 367 00:29:50,540 --> 00:29:58,320 No cost sharing with the common area in terms of the retail that their customers 368 00:29:58,320 --> 00:29:59,980 are going to be waiting in this park, which is... 369 00:30:00,050 --> 00:30:04,450 Fine, but the city is undertaking. We'll have the D to this space. 370 00:30:04,750 --> 00:30:05,310 Correct. 371 00:30:06,310 --> 00:30:09,430 Any more questions on what has covered so far? Sorry. 372 00:30:10,750 --> 00:30:11,830 Okay, keep going. 373 00:30:12,090 --> 00:30:12,910 Let's go to the next slide. 374 00:30:17,470 --> 00:30:22,170 All right, so we're going to touch on sort of the job and financial calculations for this project. 375 00:30:22,350 --> 00:30:29,210 In years one through three, an estimate of approximately 700 construction jobs on the project. 376 00:30:29,210 --> 00:30:33,650 But that's really related, I think, to apartments only, right? 377 00:30:34,330 --> 00:30:39,430 The townhomes will have a different set of contractors because that will be a different 378 00:30:39,430 --> 00:30:40,270 development group. 379 00:30:41,530 --> 00:30:45,530 Upon completion of the apartments, Woodpeel would expect to employ about seven to ten 380 00:30:45,530 --> 00:30:46,310 people there. 381 00:30:46,930 --> 00:30:51,410 And then this is a rough estimate on the restaurants in retail, 25 to 35 additional 382 00:30:51,410 --> 00:30:52,210 jobs there. 383 00:30:52,350 --> 00:30:56,690 So you're talking about conceivably between 40 and 50 jobs that would be their long 384 00:30:56,690 --> 00:31:03,730 term after construction is completed. Total project value expected at about 200 million 385 00:31:03,730 --> 00:31:09,430 at completion. Over the next 10 years the city's property tax collections as I mentioned 386 00:31:09,430 --> 00:31:14,830 are expected to exceed two million dollars and that's net of the tax abatement we're 387 00:31:14,830 --> 00:31:20,290 considering today. Upon completion the city would be deeded to park with Woodfield 388 00:31:20,290 --> 00:31:26,030 about 6.5 million in and that would include title to the land that we would take our ship off. 389 00:31:26,710 --> 00:31:35,890 So the summary is net of the million 775 and city fee waivers projected net positive impact to the city, 390 00:31:36,170 --> 00:31:40,890 mostly chipped through the park itself, and the value is about 6.7 million dollars. 391 00:31:41,770 --> 00:31:47,150 And finally, and very importantly, first major development project in the north end of the decade. 392 00:31:48,110 --> 00:31:52,790 And we believe that this could be catalytic to the redevelopment of the water. 393 00:31:54,940 --> 00:32:00,200 It is at the gateway, really, as you come down from Roswell across the river. 394 00:32:00,560 --> 00:32:04,880 It's going to be the first major project you see as you come into the north end of Sandy Springs. 395 00:32:06,200 --> 00:32:10,280 And this has been a target asset for us for a number of years. 396 00:32:10,840 --> 00:32:15,440 We've been through sort of starts and stops at times with a previous owner. 397 00:32:15,440 --> 00:32:22,060 and now with Woodfield coming in the future looks extremely bright but we've 398 00:32:22,060 --> 00:32:25,720 got someone's got to be the first kid in the pool as I use the analogy somebody's 399 00:32:25,720 --> 00:32:29,760 got to get it started in the North End and they have stepped up and we're 400 00:32:29,760 --> 00:32:32,980 working together to make that happen so we do believe this will be a catalyst 401 00:32:32,980 --> 00:32:39,480 for more projects to come in the North End and then finally final slide we'll 402 00:32:39,480 --> 00:32:45,140 look at, going back to what we read earlier in the mission statement, your 403 00:32:45,940 --> 00:32:49,980 charge as development authority members to support the city-sponsored 404 00:32:49,980 --> 00:32:54,380 development projects through taxable and tax-exempt bond financing, which we're 405 00:32:54,380 --> 00:32:58,180 discussing today, and that is deemed, projects that are deemed to be in the 406 00:32:58,180 --> 00:33:01,780 public good of the citizens the same experience. We believe that the 407 00:33:01,780 --> 00:33:05,460 construction of the park, its conveyance to the city upon completion 408 00:33:05,460 --> 00:33:09,600 and the catalytic impact that this project should have in the North and the 409 00:33:09,600 --> 00:33:15,420 city are the epitome of public good. While it will unquestionably be enjoyed by 410 00:33:15,420 --> 00:33:19,340 the residents of the North River project, we think it will be enjoyed by a lot 411 00:33:19,340 --> 00:33:24,000 more than just that. This could become, should become a gathering point for 412 00:33:24,000 --> 00:33:28,340 many of the residents of North River. So finally, as our recommendation that we, 413 00:33:28,900 --> 00:33:32,200 to Chip's point, we believe the transaction is legally meets the 414 00:33:32,200 --> 00:33:35,440 statutory requirements of the Development Authority and its mission in 415 00:33:35,440 --> 00:33:39,540 intent and we recommend the request of debate that's on the table today. 416 00:33:41,860 --> 00:33:42,040 Now 417 00:33:42,040 --> 00:33:48,720 we'll open it for more Q&A. All right does anybody have any additional 418 00:33:48,720 --> 00:33:52,760 questions? We'll get a motion and we'll have a discussion on the motion I think 419 00:33:52,760 --> 00:33:56,440 that's how we're supposed to do it but you can certainly ask questions if 420 00:33:56,440 --> 00:34:00,040 you want to gather. If you want to do Robert's Rules we'll do a motion in a 421 00:34:00,040 --> 00:34:04,840 second, then we can open the forward question. Yeah, but we can ask questions now and then 422 00:34:04,840 --> 00:34:11,920 we can have discussions. With regards to the builder, you said that they have the capacity 423 00:34:11,920 --> 00:34:19,380 to do this. Did they go out to bid? You said somebody has the capacity. Did you have a 424 00:34:19,380 --> 00:34:25,620 bid process to see who would be eligible and was there other potential capacity people 425 00:34:25,620 --> 00:34:27,680 that could actually do the same work? 426 00:34:27,680 --> 00:34:32,600 So the city is not driving this process at all in terms of the construction of 427 00:34:32,600 --> 00:34:39,440 the apartments, the retail for the town homes. So it really is, it's a public 428 00:34:39,440 --> 00:34:43,540 private partnership but we're relying a lot more on the private, meaning that 429 00:34:43,540 --> 00:34:47,460 Woodfield, which has secured their debt and equity for the apartment piece of 430 00:34:47,460 --> 00:34:52,440 this, they're gonna do the site work on the overall 13 acres. I don't think 431 00:34:52,440 --> 00:34:56,520 you all will pull utilities to the town home sites with you, but you'll 432 00:34:56,520 --> 00:35:02,560 basically get it. You'll get it scraped and then whoever the builder ultimately 433 00:35:02,560 --> 00:35:07,700 is will come in and they'll pull the utilities to the 85 count home sites 434 00:35:07,700 --> 00:35:12,040 will be there. But Woodfield has assured us that they've secured their financing 435 00:35:12,040 --> 00:35:17,380 capacity to close on the land in October. The goal would be to close the 436 00:35:17,380 --> 00:35:22,360 abatement simultaneous with their land closing. Demo has actually already 437 00:35:22,360 --> 00:35:27,740 begun on some portion of the retail and the demo would be completed on the 438 00:35:27,740 --> 00:35:32,000 overall site when the last of the tenants moves out we expect by November 439 00:35:32,000 --> 00:35:37,700 end of November November and so all of the retail would then come down after 440 00:35:37,700 --> 00:35:41,140 that and site work would begin they would then do construction of the 441 00:35:41,140 --> 00:35:44,420 apartments I guess you all had the retail site here right while you're 442 00:35:44,420 --> 00:35:49,120 building the park you get it pad ready but they will not build the retail 443 00:35:49,120 --> 00:35:52,220 Those will likely be built by another retail specialist. 444 00:35:54,220 --> 00:36:00,020 So they have, they've demonstrated to us they have the capacity and then if I mentioned 445 00:36:00,020 --> 00:36:05,280 the home builder name, people would go, yeah, they're the real deal. 446 00:36:05,640 --> 00:36:07,740 Public company with very deep name. 447 00:36:08,760 --> 00:36:09,360 Thanks. 448 00:36:11,180 --> 00:36:11,480 Questions. 449 00:36:14,580 --> 00:36:19,520 And I suppose gentlemen from Whitfield might be able to answer a field of question if 450 00:36:19,520 --> 00:36:21,040 if anybody had one specific to them. 451 00:36:21,900 --> 00:36:29,390 If not, then requests of some sort. 452 00:36:30,070 --> 00:36:31,510 Anybody would like to make one. 453 00:36:32,290 --> 00:36:33,610 And then we'll have a discussion. 454 00:36:34,690 --> 00:36:35,190 And then we'll put it. 455 00:36:35,230 --> 00:36:37,450 I think it is a good opportunity for city 456 00:36:37,450 --> 00:36:39,310 to brighten up that North End 457 00:36:39,710 --> 00:36:42,850 and not give my motion to approve. 458 00:36:43,250 --> 00:36:47,950 Okay, and before that, our attorney wants to say something. 459 00:36:48,330 --> 00:36:50,670 And regardless of what you want to say, 460 00:36:50,670 --> 00:36:56,670 one thing I want you to weigh in on is that first threshold question of is this something that is 461 00:36:56,670 --> 00:37:01,650 within our statutory authority? It is, yes. So, and this is something similar to what this 462 00:37:01,650 --> 00:37:06,050 developer has done in the past. There's a lot of ways, similar to the Tremel Crow project 463 00:37:06,590 --> 00:37:12,390 that we met on last year and approved. A similar project is economic development in nature and 464 00:37:12,390 --> 00:37:15,650 we're doing a very similar tax incentive that we've done for several other deals, 465 00:37:16,310 --> 00:37:19,470 whether it's apartment homes or other type of projects in the city in the past. So, 466 00:37:20,630 --> 00:37:22,730 Is there anything else you wanted to add? 467 00:37:23,630 --> 00:37:27,550 So the motion, if you do want to move forward with the tax incentive, what we have in front 468 00:37:27,550 --> 00:37:32,150 of you today is a bond resolution, which is your official action to approve all the taxes 469 00:37:32,150 --> 00:37:32,710 in the documents. 470 00:37:33,070 --> 00:37:37,290 What that includes is a document called the Memorand of Understanding, which is the 471 00:37:37,290 --> 00:37:41,810 agreement that covers the tax incentive, but also the other incentives for providing 472 00:37:41,810 --> 00:37:42,490 for this project. 473 00:37:42,490 --> 00:37:50,370 Also, the parameters of the project, their capital investment goal plus the city park, 474 00:37:50,790 --> 00:37:57,030 definition of city park, plus they'll provide and maintain bathroom facilities and parking 475 00:37:57,030 --> 00:37:58,230 through the park as well. 476 00:37:58,390 --> 00:37:59,310 I'll be that part of there. 477 00:37:59,450 --> 00:38:03,310 And so we'll be doing separate agreements for the park and those parts and facilities 478 00:38:03,310 --> 00:38:04,810 and bathrooms can actually close. 479 00:38:05,450 --> 00:38:10,590 But also it attaches the tax agreement that goes before the board of tax accessors 480 00:38:10,590 --> 00:38:15,590 which is required for every Fulton County tax incentive deal, that form document as well. 481 00:38:15,830 --> 00:38:19,010 We're presenting that to the Board of Tax Accessors, like we do for other tax incentive deals, 482 00:38:19,390 --> 00:38:22,230 plus all the tax incentive documents, which is that lease agreement, 483 00:38:22,650 --> 00:38:27,150 where the development authority takes title to the apartment homes and leases it to the bond 484 00:38:27,150 --> 00:38:32,450 for titles for tax payment deals. Leases it to determine the tax incentive, which would be 485 00:38:32,450 --> 00:38:36,390 construction period plus 10 years, and then all the rest of the tax incentive documents, 486 00:38:36,390 --> 00:38:40,490 which is Bond Structured Documents, called Fresno Ventures Bond Purchase Agreement, 487 00:38:41,010 --> 00:38:46,430 all relate solely to the tax incentive, not regarding financing, you know, obligations 488 00:38:46,430 --> 00:38:51,330 to the city or development authority to find this project. Everything else is on the company 489 00:38:51,330 --> 00:38:55,910 to build, finance, and do it on their own. And I think that's important for everybody 490 00:38:55,910 --> 00:39:00,310 to know because we haven't done that many of these. And I'm sure we all have to sort of 491 00:39:00,310 --> 00:39:05,570 remind ourselves of how it all works. And it's that big, big set of documents that Jim does. 492 00:39:05,570 --> 00:39:13,850 But at the end of the day, it's just a pass-through mechanism through which a city through an authority 493 00:39:13,850 --> 00:39:17,650 can do these tax payments because the city can't just do it directly. 494 00:39:18,810 --> 00:39:22,570 And so the authority, you tell me if I'm saying anything wrong, the authority will 495 00:39:22,570 --> 00:39:27,710 take title to this property, but everything's a pass-through, either the city nor the 496 00:39:27,710 --> 00:39:31,470 authority nor anybody sitting in this room has any risk or exposure. 497 00:39:31,470 --> 00:39:38,070 the risk and exposure remains with the owners and farmers but Jim if for 498 00:39:38,070 --> 00:39:43,430 purposes of a motion can you boil down what you just said to one sentence we 499 00:39:43,430 --> 00:39:48,010 would be moving to approve the bottom resolution okay in connection with the 500 00:39:48,010 --> 00:39:53,410 ad no we have an agenda item sufficient to I think so yeah move that 501 00:39:53,410 --> 00:39:58,570 agenda item okay bottom resolution that's what we'll need all right so the 502 00:39:58,570 --> 00:40:01,570 The motion and Mr. Park, I believe you were about to make one. 503 00:40:03,650 --> 00:40:08,890 If you wanted to approve it, then the motion would be for approval of the bond resolution 504 00:40:08,890 --> 00:40:11,410 as presented by Mr. Burnett and staff. 505 00:40:11,890 --> 00:40:12,790 So do we have a motion? 506 00:40:14,810 --> 00:40:15,650 So moved. 507 00:40:15,770 --> 00:40:20,290 I'll second that due to the appropriate sign-offs that have already taken place. 508 00:40:20,530 --> 00:40:20,730 Okay. 509 00:40:20,770 --> 00:40:22,050 Second by Mr. Dorsey. 510 00:40:24,840 --> 00:40:26,460 I'll open it up for discussion. 511 00:40:26,460 --> 00:40:34,060 I would first like to take my Chairman's prerogative and just frame it a little bit. 512 00:40:36,160 --> 00:40:41,400 First, we've already talked about a reminder of what we are and what we have the authority to do. 513 00:40:41,500 --> 00:40:48,920 We're not a zoning board, so it's not up to us to debate whether or not this is the proper land use that has already been decided. 514 00:40:49,500 --> 00:40:56,140 It's not up to us to debate whether this project fits the parameters in the city code. 515 00:40:56,140 --> 00:41:03,220 that's up for city staff to do in the permitting process. Our job is to evaluate this project 516 00:41:03,220 --> 00:41:08,620 in light of our statutory authority and our mission statement of which I think the three 517 00:41:08,620 --> 00:41:15,220 that apply would be city sponsored project because the city is by granting and approving 518 00:41:16,840 --> 00:41:21,960 the incentives that it can. They've already shown they've the city councils voted 519 00:41:21,960 --> 00:41:27,020 signalling the city is in favor of this project. It's clearly a redevelopment 520 00:41:27,020 --> 00:41:31,560 initiative. We're scraping and we're building something new and it fits our 521 00:41:31,560 --> 00:41:35,640 economic development goal that we've talked about in this group a lot which 522 00:41:35,640 --> 00:41:41,240 is we should be incentivizing development and redevelopment where 523 00:41:41,240 --> 00:41:46,560 it's not happening as much. So do we need to incentivize development in 524 00:41:46,560 --> 00:41:50,540 city springs or inside 25? Maybe not as much but the north end we've all 525 00:41:50,540 --> 00:41:55,420 talked about is a great place for us as an authority to focus our efforts. 526 00:41:56,780 --> 00:42:02,080 So with that, I'll open it up for anything else anybody else wants to say. 527 00:42:04,580 --> 00:42:09,920 Typically we get a fee, so what is the fee for the Economic Development Authority? 528 00:42:10,360 --> 00:42:11,460 You want to go through the fee? 529 00:42:12,040 --> 00:42:14,460 One-eighth and one-percent of $110 million. 530 00:42:15,100 --> 00:42:20,540 So we charge a one-eighth and one-percent fee, do it one time at closing to the Economic 531 00:42:20,540 --> 00:42:21,320 Development Authority. 532 00:42:21,320 --> 00:42:26,960 to receive. So that would be what? $100,000 or so? 533 00:42:27,040 --> 00:42:34,710 $150,000. Okay. All right. Anybody else? 534 00:42:37,390 --> 00:42:41,710 All right. We've got a motion on the table for approval of the bond resolution. It's been 535 00:42:41,710 --> 00:42:49,930 seconded. All in favor say aye. Opposed? All right. The ayes have it. The motion passes. 536 00:42:50,830 --> 00:42:55,310 We look forward to seeing some activity up there on the north end, gentlemen. 537 00:42:56,110 --> 00:42:59,410 Mr. Chairman, I just, in fact, if you guys can head out if you'd like. 538 00:42:59,530 --> 00:43:02,830 While they're here, I just want to say it's a real pleasure to work with them. 539 00:43:03,290 --> 00:43:03,570 They're approved. 540 00:43:04,570 --> 00:43:08,670 This has not been an always easily navigatable transaction. 541 00:43:10,150 --> 00:43:12,310 You know, there's been some bumps along the road. 542 00:43:13,790 --> 00:43:19,010 So, by Dave, Dave just been persistent and we've worked closely with them for a month now. 543 00:43:19,190 --> 00:43:21,530 I just want to thank them publicly. 544 00:43:22,590 --> 00:43:23,830 And ready for use. 545 00:43:24,290 --> 00:43:24,710 Did it close? 546 00:43:25,310 --> 00:43:26,190 Thank you guys. 547 00:43:26,330 --> 00:43:26,970 I really appreciate it. 548 00:43:27,030 --> 00:43:27,330 Thank you. 549 00:43:27,430 --> 00:43:27,790 Thank you, Chris. 550 00:43:28,150 --> 00:43:28,250 Yeah. 551 00:43:30,660 --> 00:43:31,100 Okay. 552 00:43:31,180 --> 00:43:32,180 Thank you gentlemen. 553 00:43:32,520 --> 00:43:32,820 Take care. 554 00:43:32,960 --> 00:43:33,120 Good luck. 555 00:43:34,400 --> 00:43:35,160 Let's see. 556 00:43:35,560 --> 00:43:39,020 Now we've got other business open discussion and Q&A. 557 00:43:39,700 --> 00:43:43,040 I believe Mr. Bowman did have a question about. 558 00:43:43,940 --> 00:43:47,600 No, just Chris, can you update us on the project we approved last year? 559 00:43:48,320 --> 00:43:52,220 Yeah, so obviously you can see it's wide open right now. 560 00:43:52,340 --> 00:43:56,960 They've started wrapping the garage with the first layer of new apartments 561 00:43:56,960 --> 00:44:02,740 and they're already framing the town homes on the western side of the site. 562 00:44:03,180 --> 00:44:06,500 They're still targeting a 2027 delivery date. 563 00:44:06,500 --> 00:44:13,440 That seems pretty optimistic. It may be Q4 of 27, but you know you think about that still 12 14 months out 564 00:44:14,960 --> 00:44:16,920 Yeah, it's it's a big project 565 00:44:17,600 --> 00:44:21,180 19,000 square feet of retail any announcements on the retail yet 566 00:44:21,740 --> 00:44:27,140 None that they want to share publicly, but yes, there's some real strong interest in some tenants 567 00:44:27,140 --> 00:44:30,880 I think we'd all be pleased to have come there's some good restaurants. Okay 568 00:44:32,200 --> 00:44:34,420 One could potentially be a relocation 569 00:44:34,420 --> 00:44:41,100 and then others would be new but so that's moving moving ahead well we're 570 00:44:41,100 --> 00:44:45,460 funding that project on a percentage of completion basis in fact we got a draw 571 00:44:45,460 --> 00:44:50,880 request again today so our inspector Dave Wells and his inspection team they 572 00:44:50,880 --> 00:44:56,120 go out they look at the pay request make sure that the work they're getting 573 00:44:56,120 --> 00:44:59,740 paid for the work that's already been done comes back it goes through so 574 00:44:59,740 --> 00:44:59,980 Tony 575 00:45:00,000 --> 00:45:07,700 And so we've got to pay requests by now. So we'll, by the time we fully fund the city's 576 00:45:07,700 --> 00:45:13,820 investment, the parking garage should be finished. And of course we'll have 111 spaces that are 577 00:45:13,820 --> 00:45:20,280 city-owned spaces that we will own. There is a buyout agreement, if I remember correctly, 578 00:45:20,360 --> 00:45:25,200 Jim. They can buy us out of two times cost leave. That sound right? 579 00:45:27,080 --> 00:45:35,720 I think they can buy us out if they so choose. I don't think they will. And the there's good 580 00:45:35,720 --> 00:45:43,020 probability that they're going to use 12 Oaks parking as their parking service company as 581 00:45:43,020 --> 00:45:49,940 well. That's who the city uses here at our facility. They do a good job for us. And 582 00:45:49,940 --> 00:45:52,020 And Kristen, hopefully, you feel the same. 583 00:45:53,900 --> 00:45:56,560 So they're in those negotiations now. 584 00:45:56,780 --> 00:45:59,980 If they do use 12 Oaks, it will make it a little more seamless 585 00:46:00,520 --> 00:46:03,660 since 12 Oaks is already doing our parking, probably 586 00:46:03,660 --> 00:46:07,700 the same equipment and same revenue oversight 587 00:46:07,700 --> 00:46:09,920 that would be done there as well. 588 00:46:11,540 --> 00:46:11,900 OK. 589 00:46:12,720 --> 00:46:15,760 Chris, how about the movie theater? 590 00:46:18,410 --> 00:46:18,930 Parkside. 591 00:46:19,090 --> 00:46:19,350 Parkside. 592 00:46:19,350 --> 00:46:28,550 So Parkside met with Jamestown just two weeks ago and the the challenge with 593 00:46:28,550 --> 00:46:33,730 that plan right now centers around the 80,000 square foot office building that 594 00:46:33,730 --> 00:46:38,670 is built into that plan. You all may not remember the conceptual site plan but 595 00:46:38,670 --> 00:46:44,470 it included a combination of apartments, townhomes, restaurants, retail, a park, 596 00:46:44,470 --> 00:46:49,870 and an office building. And it all has to be built around the theater because the 597 00:46:49,870 --> 00:46:56,070 theater has a long-term lease in the theater and has in their lease they have 598 00:46:56,070 --> 00:46:59,930 parking space commitments. Obviously you've got to park theater for your 599 00:46:59,930 --> 00:47:04,310 patrons. Well most of the potential development would go where the parking 600 00:47:04,310 --> 00:47:09,850 spaces are now. The surface asphalt. It's a good 601 00:47:09,850 --> 00:47:13,330 complimentary use to have an office building because the theater is 602 00:47:13,330 --> 00:47:17,450 filling up at night as the office tenants are leaving. So shared parking 603 00:47:17,450 --> 00:47:21,290 between an office building and the theater actually works really well. But 604 00:47:21,290 --> 00:47:26,330 it's almost impossible today to get financing until you have at least 50% 605 00:47:26,330 --> 00:47:31,250 of your office building pre-leased with credit worthy tenants. And that's a 606 00:47:31,250 --> 00:47:36,630 very heavy lift in this market. I mean our rents generally in the downtown 607 00:47:36,630 --> 00:47:42,730 office market are in the mid 20s, maybe high 20s of square foot in some 608 00:47:42,730 --> 00:47:47,670 of our buildings, but to build a new building today, you need to have rents between $50 609 00:47:47,670 --> 00:47:50,610 and $60 square foot to even get close. 610 00:47:51,210 --> 00:47:56,310 And when you're in a market of rents in the $25 to $28 range, leasing a building at $50 611 00:47:56,310 --> 00:47:58,210 or more square foot is hard to do. 612 00:47:58,670 --> 00:48:03,490 So as a result, there are no leases yet for the office building, but once they're 613 00:48:03,490 --> 00:48:09,030 able to get to a 50% lease pre-lease mark, I think you'll see that start to get 614 00:48:09,030 --> 00:48:09,950 traction to move forward. 615 00:48:10,350 --> 00:48:10,830 Great. 616 00:48:10,830 --> 00:48:15,610 Does anybody else have any questions for Chris or any of the other staff that's here? 617 00:48:16,690 --> 00:48:18,310 That knows all the stuff. 618 00:48:19,350 --> 00:48:19,450 No? 619 00:48:20,370 --> 00:48:25,090 Okay, well then we will, I'll get a motion to adjourn. 620 00:48:25,210 --> 00:48:30,830 But before that, I want to make sure everybody knows we're having our first ever development 621 00:48:31,410 --> 00:48:33,870 authority cocktail party downstairs in the city park. 622 00:48:34,330 --> 00:48:37,970 Even though our $150,000 fee would buy a lot of booze, 623 00:48:37,970 --> 00:48:42,470 We have learned that authority funds cannot be used for such nefarious activities. 624 00:48:43,270 --> 00:48:47,850 So, and I have to say this law firm of burn form is happy to be sponsoring this today. 625 00:48:48,090 --> 00:48:52,590 I encourage any of the staff and Jim, of course, to come join us. 626 00:48:53,190 --> 00:48:55,830 And Mayor Paul will be meeting us there momentarily as well. 627 00:48:56,110 --> 00:48:56,890 So please come down. 628 00:48:57,070 --> 00:48:58,750 We'll have drinks and snacks in City Bar. 629 00:48:59,850 --> 00:49:03,830 And we would have done this after our morning meeting, but that just didn't seem appropriate. 630 00:49:05,890 --> 00:49:08,610 But now I do need a motion to adjourn. 631 00:49:10,250 --> 00:49:12,590 All right, we've got a motion on favor, aye. 632 00:49:12,750 --> 00:49:12,970 Aye. 633 00:49:13,310 --> 00:49:13,630 Opposed? 634 00:49:14,350 --> 00:49:14,790 Passes. 635 00:49:15,290 --> 00:49:16,110 Thank you everybody. 636 00:49:16,930 --> 00:49:17,350 Great job. 637 00:49:20,710 --> 00:49:21,590 Thank you. 638 00:49:21,690 --> 00:49:21,790 Appreciate it. 639 00:49:21,790 --> 00:49:22,170 Appreciate it. 640 00:49:22,690 --> 00:49:24,030 Thank you. 641 00:49:24,030 --> 00:49:25,090 Thank you very much.