To: Honorable Mayor and Members of Town Council
From: David Corliss, Town Manager
Kevin Tilson, DDA Executive Director
Title
Discussion/Direction: Authorization to continue negotiations for possible public/private partnership for private redevelopment and publically-owned downtown parking spaces at the proposed Festival Park Commons project
Body
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Overview Summary of Possible Redevelopment Project
This memorandum provides a brief overview of the proposed Festival Park Commons Project. Last year Town Council authorized a Request for Proposals for possible use of the Town owned parking lot south of Town Hall as part of possible downtown redevelopment. Council authorized staff to negotiate with Castle Brae (Tom Kahn Construction) for a possible public/private redevelopment in this area. Negotiations and analysis have continued and this memo provides some public highlights and updates.
Understanding, that many variables are under analysis and all numbers are current approximations, the proposed private redevelopment would consist of approximately 106 for-sale residential units, 22,000 square feet of retail and 17,500 square feet of office space.
The parking garage would contain a public/private grand total of approximately 406 spaces (subject to confirmation after Project parking requirements are determined) on three-levels located on a 2.077-acre parcel, inclusive of the existing Town Hall parking lot parcel (.964 acres), existing Town alley (.15 acres), and 3 adjacent privately owned parcels (.321 acres each). The Town would own legal rights to 300 parking spaces for exclusive public use as the Town determines, and the Developer will acquire (106) spaces for the exclusive use of owners/patrons of the for-sale residential units.
In order to pay for the Town public parking spaces, the Town would receive revenue generated from the project (in either whole or shared revenue mix): Incremental property tax, Town sales tax, an add-on Public Improvement Fee, and revenue from a General Improvement District (GID) which would be imposed on the privately owned for-sale residential units, the office and retail property. The developer would pay up to $900,000 toward the cost of train horn quiet zone improvements.
Additional Next Steps
Town Council is receiving a confidential briefing on potential negotiation points in this public/private redevelopment. Among the continuing issues which are being analyzed: analysis of the adequacy of the proposed revenue stream with the cost of the parking spaces as proposed by the developer; Town conditions for encumbering the property as collateral for Certificates of Participation to finance the Town’s costs, site development approvals, GID formation, several important aspects of a possible redevelopment agreement, and other issues associated with the general deal points for the project.
The proposed project will be discussed by the Downtown Development Authority at a future meeting as well.
The proposed project has several merits to the community, including substantial downtown redevelopment, for-sale living units, funding for a train horn quiet zone, and a revenue source to pay for public parking spaces. There are few likely acceptable alternatives (e.g. Taxes) to provide revenue for the substantial cost associated with an off-street parking facility on available land at a good location near the downtown core.
Proposed Motion: Direct staff to continue negotiation and analysis work with the Festival Park Commons team and provide a proposed redevelopment agreement and other necessary documents as appropriate.