Options for First State Bank of NW Arkansas Property M ace Curve - - PowerPoint PPT Presentation

Options for First State Bank of NW Arkansas Property – M ace Curve 391

STAFF PRESENTATION Special M eeting of Davis City Council J une 11, 2013

Overview

Consent Calendar vs. Regular Session

• Staff was aware it would be pulled by Council.
• Was intended to allow flexibility to Council for when they heard item

after it was pulled.

• M uch of current discussion is not fully vetted and ready for Council

presentation… NRCS Grant timing is driving schedule.

City Goal T ensions, Policies and Realities

• Council Goals - Fiscal Stability, Economic Development, Sustainability
• General Plan Land Use Designations and M ap – Business Park,

University-Related Research Park, Urban Agricultural Transition Area

• M easures J/ R and O
• Fiscal uncertainty – Structural budget deficit, deferred maintenance,

rising personnel costs

Overview of M easure O

• Approved November 7th 2000 - 70.4% approval created Ordinance for the Open Space Protection Tax.
• Purpose is to “collect funding for the acquisition, operation and maintenance of open space and related public

facilities necessary for operation of the land as open space

• Generates Approx. $600,000/ year
• Approx. 80% goes towards acquisition
• Open Space means:
• Land in a predominantly natural state or altered for natural resource based uses (i.e. farming, parks)
• M ay include, but is not limited to riparian areas, agricultural lands, watersheds, forests, floodplains, and

habitat areas Revenue can be spent on:

• Acquisition in fee or easement of open space lands within the Davis Planning Area
• Improvement, operation, maintenance and/or monitoring of OS lands
• Acquisition, improvement, and operation of only those bicycle trails designated to connect Davis to open

space areas outside the city and with other regional bicycle facilities.

• Construction and maintenance of facilities necessary to preserve or enhance OS properties for OS purposes

(wells, irrigation, access)

• Incidental expenses incurred in the administration of the tax including but not limited to the cost of elections,

cost of collection, operate, maintain and monitor OS properties owned in fee or easement

• Sunsets in June 30, 2031
• Approx. 1848 acres acquired with M easure O funds (whole or partial)

M ace Curve 391 Purchase

How we acquired M ace Curve 391

• City presented with opportunity by local broker to

purchase the property

• M et City’s Sustainability goals
• Used City funds to purchase

M easure O – appropriate for easements Loan from Road Impact Fee – specified use, not

available for general road maintenance

M ace Curve 391

Purchased by city in July 2011 – $3,800,000

• $1,325,000 – M easure O
• $2,475,000 – Internal Loan (Roadway Impact Fee)

Intent of Ag Conservation of 391 acres

(estimated completion of M arch 2014)

• Purchase of Conservation Easement

$1,125,000 – NRCS Grant $1,325,000 – M easure O Part of funds go to repayment of City Loan

• Repayment of Remaining City Internal Loan

$1,350,000 – Upon sale of Fee Title to third party

Mace 391/ Arkansas (City-owned) = 391 + / - acres

Innovation Park Task Force

Concurrent Policy Effort

• Innovation Task Force met for 1½ years

(mid 2010 – late 2012)

• Used guiding principles of City economic development goals of:

cultivate diversified economy, workforce and tax base; capitalize on resources of university town, including human capital; and promote appropriate partnerships with the private sector and university

community

• Council adopted Task Force recommendations in November 2012

Key Recommendation: Pursue dispersed innovation center strategy,

including centers at the east and west edges of the City

Capitol Corridor Ventures Concept

• Enter into exclusive negotiations for acquisition of the M ace Curve 391 Property.
• CCV proposes escrow deposit of $100,000
• Reimburse YL

T for costs incurred in the NRCS and land acquisition process and City costs for negotiating the agreement with CCV.

• Essentially swap 234 acre portion of the M ace Curve 391 Property for a

conservation easement on the Shriner property (234 acres)

• CCV holds an option on the Shriner’s Property.
• Conservation easements proposed for the north east 157 acres of the M ace

Curve 391 Property.

• The M easure O funds are proposed to pay for the easements described in this

proposal.

• City and the Y
• lo Land Trust would be made “ whole” at the conclusion of the

addition of the Shriner’s Property into the transaction.

• Any future, voter-approved development proposed by CCV in the M ace Curve

proposed to include a continuous, substantial and sustainable annual funding source for the City

• In excess of traditional development fees

Shriner’s/ Mace Covell Gateway = 234 + / - acres Howatt R anch (City-owned) = 776 + / - acres Mace 391/ Arkansas (City-owned) = 391 + / - acres

Potential 157 acre Ag Conservation Easement Potential 234 acre Ag/Open Space Conservation Easement

Proposed Ag E asement = 157 + / - acres

Balancing City Goals and Priorities

Open Space Preservation/ Economic Development

City staff must balance goals…

§ Acquire open space and conservation easements

Council Goals - sustainability General Plan Policy – Urban Agricultural Transition Area City M easures J/ R & O

§ Support of entrepreneurship, access to business support services

and local business growth

Council Goals – fiscal responsibility & economic development General Plan Policy – Business Park, University-Related Research Park Innovation Park Task Force – Adopted resolution Losing businesses - revenue

Balancing Priorities

Advantages

• Y
• lo Land Trust receives NRCS grant

for $1,125,000

• substantially offset the City’s
• riginal acquisition costs
• partially pay back the Road

Impact Feel internal loan

• Permanently preserved for

agricultural use

• City would have an opportunity site

to establish an urban farm

• City likely able to repay the rest of

the Road Impact Fee internal loan

• Implement a portion of the Urban

Agricultural Transition Area

Disadvantages

• Land use restrictions - greenhouse

structures or other impervious surface area

• Potentially difficult to identify

purchaser of the land with a planned easement

• Potential sale of easement-

encumbered land not at minimum of $1,350,000

• internal loan, pay broker fees, nor

set up YL T endowment for on- going enforcement of the easement,

• Potential inability to utilize the property

for leverage to acquire more complete conservation buffer on the northeast side of the City.

NRCS Grant Acceptance

Balancing Priorities

Advantages

• Potentially acquire alternative

configurations for conservation

• Retains maximum flexibility to

appropriately locate and scale a potential innovation center

• Close proximity to critical

infrastructure

• Cost-sharing strategies could be

explored to create a long term revenue stream for the City

• Conservation easements could

include commercial greenhouses,

• pen space recreation and wildlife

conservation areas

Disadvantages

• Real estate acquisition or development

concepts are always speculative

• There are details that would need to be

negotiated in the CCV proposal and exploration and vetting of concepts will be necessary

• The City would lose the NRCS grant

funding

Decline NRCS Grant

NRCS Relationship Assurance

Gore, James - NRCS, Washington, DC James.Gore@wdc.usda.gov To: Rob White Cc: Boozer, Astor - NRCS, Washington, DC; Suarez, Carlos - NRCS, Davis, CA Re: DC M tg Followup - Davis, CA Wed 5/ 15/ 2013 6:06 AM I am cc ing Astor Boozer here. I spoke with Carlos after our meeting, and don't see an option to trade out the easement for another property. Y

• u can follow up with Astor and Carlos.

No hard feelings if you guys have to rescind your application. Best to you in all your endeavors. James Gore Assistant Chief Natural Resources Conservation Service | USDA Office: 202-720-4525 | James.Gore@wdc.usda.gov Helping People Help the Land

Email – emphasis added

Staff Recommendation

• Determine that exploring options for M ace Curve 391

Policy consistent with Council stated goals of Fiscal Stability,

Economic Development and Sustainability

Outweighs the current value of USDA NRCS grant

• Authorize staff to notify the Y
• lo Land Trust (YL

T) that the City will decline to proceed with USDA Natural Resource Conservation Service (NRCS) grant funding NOTE: Action by Council is required at June 11th City Council meeting

Lack of Council action will have the default effect of staff

implementing previously adopted Council actions

Accepts the NRCS grant and executes the conservation

easement agreement

Conclusions

• City staff are working to give the City Council

maximum flexibility in balancing the communities goals, priorities and directives NRCS Grant schedule requires June 15th decision Declining grant preserves options Additional public vetting would be ideal, but cannot be

done with NRCS grant acceptance

• Any project proposal that converts land to urban

use continues to be subject to M easure J/ R

• Value relationship with Y
• lo Land Trust (YL

T) and look forward to working with them on future

• ptions/opportunities