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HomeMy WebLinkAbout4502 RESOLUTION NO. 4 5 0 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DESIGNATING I A REVITALIZATION AREA, AND AUTHORIZING AN ' APPLICATION TO THE STATE DEPARTMENT OF REVENUE FOR LOCAL REVITALIZATION FINANCING, AS PROVIDED FOR IN CHAPTER 270, : LAWS OF 2009 WHEREAS, Second Substitute Senate Bill 5045, enrolled as Chapter 270, Laws of 2009 (the "Act") provides for the allocation of seventy-five percent (75%) of property tax and a sales and use tax credit of up to one hundred (100%) of the amount generated from new development within a designated Revitalization Area ("RA") to finance public infrastructure that promotes community and economic development; and WHEREAS, the Act does not increase the total amount of local or State sales, use, or property taxes paid by a property owner; an.d WHEREAS, the City of Auburn may qualify for up to $250,000 per year for a period of twenty five years in local revitalization financing under the Act; and WHEREAS, pursuant to public notice published on July 2, 2009, and posted in accordance with the Act, the City Council held a public hearing on July 20, 2009, to receive public comment on this proposed Resolution; and WHEREAS, the local taxing jurisdictions listed in Section 7 below have provided to the City copies of ordinances or resolutions duly passed by their governing bodies indicating that they do not want to participate in this program; and Resolution No. 4502 August 3, 2009 Page 1 of 7 WHEREAS, the City Council believes that the use of local revitalization financing to fund certain public improvements will act as a catalyst to attract new private investment and the creation of new jobs. : NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, HEREBY RESOLVES as follows: Section 1. As provided for in the Act, the City Council authorizes the use of local revitalization financing, and hereby designates an RA for the purposes of, and as further described in, the Act and this Resolution. Section 2. The name of the RA is the "Auburn Revitalization Area." Its boundaries are generally co-located with the Urban Center boundaries adopted in the City's Comprehensive Plan by Ordinance No. 5891 and adopted as part of the King County Countywide Planning Policies, as shown on the map at Exhibit A, which is attached hereto and irrcorporated herein by reference. Section 3. The "Public Improvements" to be constructed by the City within the RA and financed in part by the local revitalization funding shall include but not be limited to the reconstruction of South Division Street including three blocks of roadway pavement, crosswalks, sidewalks, pedestrian & street lighting, relocation and replacement of undersized water/storm/sewer utility improvements, undergrounding power, aesthetic treatments and landscaping. Section 4. The estimated cost of the Public Improvements is $8,000,000. The portion of these costs to be financed by local revitalization financing is approximately $6,650,000, which includes the local revitalization funding match. Resolution No. 4502 August 3, 2009 Page 2 of 7 Section 5. The estimated time during which local property tax allocation revenues and other revenues from local public sources are to be used for; local revitalization financing is up to finrenty-five years. Section 6. The date when the use of local property tax allocation revenues and other revenues from local public sources for local revitalization financing will commence is not earlier than July 1, 2010. Section 7. The following taxing jurisdictions adopted an ordinance or resolution as required in Section 106 of the Act, and therefore will not be participating in the local revitalization financing: Valley Regional Fire Authority - Resolution No. 62 King County Rural Library District - Resolution No. 2009-06 Port of Seattle - Resolution No. 3626 King County Ferry District - Resolution No. FD2009-12.1 King County Flood Control Zone District - Resolution No. FCD2009-10 King County - Ordinance No. 16611 Section 8. The Council finds that use of local revitalization financing in the RA meets the criteria of Section 103 of the Act, to wit: A. The Public Improvements proposed to be financed in whole or in part using local revitalization financing are expected to encourage private development within the revitalization area and to increase the fair market value of real property with in the RA; Resolution No. 4502 August 3, 2009 Page 3 of 7 B. The City has entered into a Master Plan Development Agreement ("MPDA") on October 6, 2008, with Alpert International, LLP, that provides for the development of private improvements within the RA (Attached as Exhibit B); C. The private development that is anticipated to occur within the RA is consistent with the land use policies of the King County Countywide Planning Policies, dated October 2008, with the Land Use and Comprehensive Plan Map elements of the City's Comprehensive Plan, most recently updated on December 1, 2008, and with the City's development regulations found in Titles 12, 13, 14, 15, 16, 17, and 18 of the Auburn City Code in effect as of the date of this Resolution. D. The RA does not contain more than finrenty-five percent (25%) of the total assessed value of the taxable real property within the City as of the effective date of this Resolution. The total assessed value of the taxable real property in the City is $8,719,721,892; the total assessed value of the real property within the RA is $259,513,700. E. If awarded a state contribution under the Act, the anticipated rate of sales and use tax under section 601 of the Act that the City will impose shall be .05%. F. The anticipated date when the criteria for the sales and use tax in section 601 of the Act will be met is not earlier than July 1, 2010. The anticipated date when the sales and use tax in section 601 of the act will be imposed is not earlier than July 1, 2010. Section 9. The City Council finds that local revitalization financing: Resolution No. 4502 August 3, 2009 Page 4 of 7 A. Will not be used for the purposes of relocating a business from outside the RA, but inside this state, into the RA unless convincing evidence is provided that the firm being relocated would otherwise leave the state; B. Will improve the viability of existing business entities within the RA; C. Will be used exclusively in areas within the City that the City has deemed in need of either economic development or redevelopment or both, and absent the use of local revitalization financing the proposed economic development or redevelopment more than likely not occur; Section 10. The City Council further finds that the public improvements proposed to be financed in whole or in part using local revitalization financing are reasonably likely to: A. Increase private investment within the RA; B. Increase employment within the RA; C. Generate, over the period of time that the local sales and use tax will be imposed under Section 601 of the Act, increases in state and local property, sales and use tax revenues that are equal to or greater than the respective state and local contributions made under the Act; and D. Provide for direct positive business and economic impacts in the RA. Section 11. In order for the City to finance the Public Improvements using local revitalization financing, the City Council acknowledges and agrees that the City will shall meet and adhere to all of the conditions, limitations and requirements provided in the Act. Resolution No. 4502 August 3, 2009 Page 5 of 7 Section 12. Financing. The City intends to fund the Public Improvements by utilizing a$3,000,000 Economic Development Administration grant and the balance of the project cost through the issuance of general obligation debt. The G.O. debt will be repaid using local revitalization funding, increases in local property, sales and use tax revenues from participating local governments and participating taxing districts, increases in local property, sales and use tax revenues from the City, applicable real estate taxes and general governmental revenues. The City intends to incur general indebtedness, including general obligation bonds to finance the public improvements and to retire the indebtedness in whole or in part from local revitalization financing it receives. The maximum amount of indebtedness the City will incur is $6,650,000. Section 13. The Mayor is authorized to submit applications and reports to the State Department of Revenue as provided for in the Act, and to take such other administrative actions consistent with this Resolution as he deems necessary. Section 14. That this Resolution shall take effect and be in full force upon passage and signatures hereon. Dated and Signed this ';Jti, day of 12009. T TER B. LEWIS MAYOR Resolution No. 4502 August 3, 2009 Page 6 of 7 ATTEST: • ` ~A, ~ Danielle E. Daskam, City Clerk APPROV~D A TO FORM: . Danie B. Heid,'City Att ey\ \ II Resolution No. 4502 'August 3, 2009 I Page 7 of 7