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Home My WebLink AboutITEM V-BCITY OF_ * * ~ WASHINGTON AGENDA BILL APPROVAL FORM Agenda Subject: Date: Communit Center & Activi Center Pro'ects "Strate ic Plan" Jul 14, 2009 Department: Attachments: Budget Impact: Administration/Finance Strate ic Plan & Financial Overview $11,950,000 Administrative Recommendation: City Council approve the Community Center & Activity Center Projects Strategic Plan and Financial Plan. Background Summary: . Over the last few months, a work group comprised of City staff has been meeting to discuss the financial challenges and tasks that need to be accomplished in order to commence construction of the Community and Activity Centers. The outcome of this effort has resulted in the preparation of a"Strategic Plan" and a means for being able to fund both of these facilities ("Financial Overview"). N0720-1 04.4.13 Reviewed by Council & Committees: Reviewed by Departments & Divisions: ❑ Arts Commission COUNCIL COMMITTEES: ❑ Building ❑ M&O ❑ Airport 0 Finance ❑ Cemetery ❑ Mayor ❑ Hearing Examiner ❑ Municipal Serv. ED Finance ❑ Parks ❑ Human Services ❑ Planning & CD ❑ Fire • ❑ Planning ❑ Park Board ~ Public Works [D Legal ❑ Police ❑ Planning Comm. ❑ Other ❑ Public Works ❑ Human Resources ❑ Information Services Action: Committee Approval: ❑Yes ❑No Council Approval: ❑Yes ❑No Call for Public Hearing Referred to Until Tabled Until Councilmember: Backus Staff: Coleman Meetin Date: Jul 20, 2009 Item Number: A(J$j,JM *tvIORE THAN YOU IMAGINED Communitv Center & Activitv Center Proiects Strateqic Plan July 15, 2009 I. Project/Program Definition/Goals: Reconfirm or redefine the project scope and goals. Project Definition: Fund and construct a 22,000 s.f. community center facility and parks administrative office space; and fund and construct an 8,000 s.f. activity center/gym and remodel existing 7,000 s.f. building into a Youth Center at the Les Gove. Goal: Create a community gathering place to be used for educational, cultural, social activities and large non-programmed community meeting spaces that will contribute to community pride and foster a sense of community. Goal: Provide an activity center/gymnasium facility that will serve the Auburn community by offering a broad range of activities that promotes recreation, social interaction, fitness and healthy lifestyles. Goal: Develop a regional human services center that would house various human and social service providers into a common campus setting in order to enhance the level of services to the community. II. Challenges/Obstacles/Opportunities: What are the challenges, obstacles and opportunities in being able to carry out the tasks and ultimately the successful accomplishment of the projects? The challenges, obstacles and opportunities that exist and need to be addressed: 1) Partnership aqreements - Partner with the King County Housing Authority and the King County Boys and Girls Club of Auburn. 2) Communitv Center and Activitv Center proqrams/qoals - Programs that will be provided in the Community Center and Activity Center. 3) Community/Activity Center projects - Scope of the finro capital facility projects. 4) Fundina/Financinq - Financing/funding challenges/opportunities: a) New Market Tax Credit program (NMTC) - low income community development), b) limit City's financial liability, c) partner's contributions, and d) grant funding. 5) Bid Awards - Action to be taken on the Community Center/Activity Center bids. 6) Property acquisition - Additional property purchases. 7) Human Services proqram - Comprehensive human services program component to the planned use of the Les Gove complex. 8) City Council - Policy decision making process. 9) Timelines - All applicable timelines/deadlines. III. Game Plan: What is the game plan? How are we going to accomplish the goals? Define tasks. The following is a listing of tasks that need to be accomplished: 1) Scope of Communitv Center and Activity Center proqram - No modifications to the programs are required at this time; however, program changes will need to be made when "partners" are secured. 2) Scope of the Numan Services regional center - Is there a current program statement that has defined the development and use of a human services center? 3) Capital Improvements - Define capital facilities and infrastructure improvements to be funded by the City (i.e., community center, activity center and infrastructure). 4) Propertv acquisitions - Additional property may be needed to satisfy pending parking requirements. 5) Partnership aqreements - a) execute agreements with the King County Housing Authority regarding NMTC funding program, street vacation, right of way acquisition, potential use of facilities; and b) execute agreements with the Auburn Boy's & Girl's Club for capital facilities funding contributions and use of facilities. 6) Financial - a) Dept. of Treasury NMTC program, b) grant funding for the activity and community center (i.e., energy block grant), c) negotiate partner capital contributions for use of the facilities, d) secure Community Block Grant loan, and e) other potential interim and long-term funding. 7) Timelines - Clarify or define all timelines/deadlines. IV. Roles/Responsibilities: Who is responsible for doing what? Determine and define task assignments. C ity Staff: Daryl Faber - parks/recreation/service program planning Michael Hursh - human services plan ning/coord ination Brenda Heineman - contract negotiations, construction project management Shelley Coleman - financing/funding coordination, NMTC Dan Heid/Stephen Gross - review/approve contracts, legal advice Dennis Dowdy - transportation and utility issues Cindy Baker - development, planning, land use issues Pete Lewis - policy/program direction Rich Wagner - Council committee representative Michael Wilson - team coordination, NMTC, project funding Other aqencies/parties: Bond Counsel (Foster/Pepper) - counsel on financing issues King County Housing Authority - partnership agreement Boys & Girls Club of Auburn - partnership agreement V. Deadlines: When do we need to complete the project - target date? What are the deadlines for accomplishing various tasks/assignments? The following is a listing of projected completion dates for accomplishing goals/tasks: Goals/Tasks Tarqet Dates 1) Commence construction of new community center April, 2010 2) Commence construction of new activity center/gymnasium April, 2010 3) Secure final financing for the project(s) Feb., 2010 4) Complete NMTC funding process Dec., 2009 5) Execute agreement(s) with King County Housing Authority Sept., 2009 6) Initiate NMTC funding process Sept, 2009 7) Negotiate agreement(s) with Boys & Girls Club Aug., 2009 8) Apply for Community Development Block Grant loan Aug, 2009 9) Execute agreements with Bond Counsel, NMTC consultant Aug., 2009 10) Complete assessment for securing NMTC financing and other sources for funding projects, Council approval of strategic plan July, 2009 11) Update and refine project costs, prepare revised budget June, 2009 2 Communitv Center / Activitv Center Proiects Financial Overview NMTC Financial Structure Descriqtion ' Amount NMTC Investment Fund - Project Cost Balance 11,200,000 - Project Expended to Date 1,550,000 - Land Value 400,000 - NMTC transaction fees (2%, plus 25 basis points annually) 530,000 - Finance Cost - legal, audit, underwriting, accounting 420,000 Total Investment Fund ,14,100,000 Equity Investor's initial investment - NMTC 4,041,000 Tax credit Investment Fund 14,100,000 Tax credit value to Equitry Investor (39% over 7 yrs) - Year 1 705,000 - Year 2 705,000 - Year 3 705,000 - Year 4 846,000 - Year 5 846,000 - Year 6 846,000 - Year 7 846.000 5,499,000 NMTC Benefit to City of Aubum - Activity Center 1,252,719 31 % - Community Center 2,788,291 69% Total 4,041,000 II. Project Cost (Balance) Project budget - Activity Center 3,889,102 3,410,000 - Community Center 8,834,492 7,590,000 - NMTC/Finance Costs - legal, transaction fees, audits, underwriting costs 950,000 Total 11,950,000 III. Revenue City of Auburn - reserved REET funds or other reserves 3,300,000 Solid Waste Utility Fund 500,000 NMTC Structured Finance - Investor's Contribution 4,041,000 Boy's & Girl's Club (50%/50% partnership) 1,900,000 CDBG Loan (max. loan; 5 times annual CDBG payment) 2,050,000 Unfunded 159,000 Total 11,950,000 Annual Debt Payment - 20 year (CDBG Capital Funds) 210,000 annual funding limitation using CDBG funds -$250,000 IV. NMTC Benefit Equiry Investor ($4,041,000) less NMTC Finance Charges ($950,000) _$3,091,000 or 22% of project value Revised: 7/15/2009