DATE: February 24, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Vernon Gerth, Assistant City Administrator - Community and Economic Development
Paul Holzen, Engineering Department Director
SUBJECT:title
Consideration Of Two Requests By Harpeth Associates, LLC Developer Of The Proposed Harpeth Square Development In Historic Downtown Franklin For Additional Financial Assistance With Required Improvements Within The Public Right-Of-Way Specifically, Improvements To Traffic Control Devices And Streetscape. (02/24/15 WS)
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Purpose
The purpose of this memorandum is to provide information to the Board of Mayor and Alderman (BOMA) about the two recent requests submitted by Harpeth Associates, LLC developer of the proposed Harpeth Square Development for additional financial assistance with required improvements within the public right-of-way.
Background
Road Impact Fee Request
Harpeth Associates, LLC is asking the Board of Mayor and Alderman to reconsider the improvements receiving off-sets in their Road Impact Agreement as previously discussed during a recent BOMA work session. Their request and additional improvements are outlined in the attached letter. While the additional improvements appear to be supported by the Harpeth Associates traffic engineer, the City's Road Impact Fee Ordinance (Title 16, Chapter 4 of the Municipal Code) only allows for off-sets to arterial roadways for capacity-added improvements required to support the impact of the proposed development. Furthermore, Section 16-417 (7) states "In no event may the city apply an offset which is greater than the applicable impact fees due from the development project." In this latest request, Harpeth Associates is requesting the City to consider existing traffic conditions and to reimburse the developer an additional amount for a portion of the improvements. As previously discussed, the road impact fees generated from the entitlements associated with this development do not allow the developer to re-capture the entire value of the required improvements to needed to support this development. However, should the BOMA decide to assist with lessening the financial obligations to this development, these funds should be appropriated from a fund other than the Road Impact Fee Fund or the BOMA should amend Title 16 of the Municipal Code to allow for the Road Impact Fee Fund to either offset or reimburse a development project for more than the applicable road impact fees due from a development project.
Streetscape Request
As discussed during a recent work session Harpeth Associates has requested assistance with streetscape improvements associated with their proposed development. Their request, as discussed in the enclosed letter has merit yet reveals a broader policy issue for the BOMA as it relates to encouraging private investment through redevelopment where the City is investing in streetscape. Streetscape is a widely used economic development tool that begins with a community's commitment to supporting revitalizing a portion of the community. This community investment in streetscape encourages private property improvements thus creating a more desirable destination and economic vibrancy. Franklin is an excellent example. Streetscape improvements are historically been funded by the local jurisdiction or included in a specific improvement district or assessment to property owners.
It would be appropriate for the BOMA to consider assisting private property owners with streetscape improvements that are located along public roads that were not included in the streetscape improvement project and that would be viewed as a naturally extension to streetscape. For example, such assistance could be considered for those out-of-pocket expenses that are above the normal improvements associated with any project. Examples of normally required improvement include public concrete sidewalks, multiuse trails, standard street lighting, traffic control signage, and street trees. In formulating a policy, the BOMA may choose to allow developer reimbursement through the City's Hotel/Motel Tax Fund or other funding mechanism upon completion and confirmation of expenses.
Financial Impact
Redevelopment presents a variety of economic opportunities and challenges to communities. The millions of dollars being invested in our historic central business district will contribute to tourism and maintaining its economic vibrancy. The true financial impact of the City-supported redevelopment requires in-depth analysis. The developer, Harpeth Associates has commission MTSU to complete an economic analysis for their project that will be shared as a separate item.
Recommendation.rec
Road Impact Fee Off-set Request Staff Recommendation
Staff does not recommend supporting this request. As previously discussed, the City's Road Impact Ordinance does not allow the developer to recapture an amount greater than road impact fees they would be required to pay. In addition, the road impact fee agreement as previously drafted and discussed with BOMA at the January work session (attached) is consistent with the policy of allocating Road Impact fees and offsets only to those improvements that provide improvements to the capacity of arterial roadways. However, should the BOMA decide to assist with lessening the financial obligations to this development, said funds should be appropriated from a fund other than the Road Impact Fee Fund or, the BOMA should amend Title 16 of the Municipal Code to allow for the Road Impact Fee Fund to allow reimbursement to a development project for more than the applicable road impact fees due (generated) from the project. If changes are needed to the previously discussed Road Impact Fee Off-Set Agreement it is recommended the Harpeth Square Re-Zoning and Development Plan Public Hearing and, consideration of the Harpeth Square Road Impact Fee Off-Set and Water and Sanitary Sewer Development Agreements scheduled for consideration on March 10 be deferred to the May 12 BOMA Meeting to allow time for these changes to be made.
Streetscape Request Staff Recommendation
It would be appropriate for the BOMA to consider assisting private property owners with streetscape improvements that are located along public roads that were not included in the streetscape improvement project and that would be viewed as a natural extension to streetscape. For example, such assistance could be considered for those out-of-pocket expenses that are above the normal improvements associated with any development project. Examples include public concrete sidewalks, multiuse trails, street lighting, traffic control signage, and street trees. In formulating a policy the BOMA may choose to allow developer reimbursement through the City's Hotel/Motel Tax Fund upon completion and appropriately documenting expenses. Guidance on crafting a formal policy for similar projects is requested.