Meeting Agenda State College Borough Redevelopment Authority November 15, 2017 Room 241 / 12 p.m

Transcription

1 Meeting Agenda State College Borough Redevelopment Authority Room 241 / 12 p.m I. II. III. IV. V. VI. Call to Order Roll Call Approval of Minutes Chair Report Public Hour - Hearing of Citizens Financial Issues A. B. August 2017 Expense Voucher Approvals Review of Proposed 2018 Redevelopment Authority Budget VII Meeting Calendar A. Draft 2018 Meeting Calendar VIII. IX. X. Official Reports and Correspondence Upcoming Meetings Adjournment Documents: Complete Redevelopment Authority Agenda pdf

2 I. Call to Order Meeting Agenda State College Borough Redevelopment Authority Room 241 / 12 p.m. Redevelopment Authority Agenda Page 1 of 15 II. Roll Call Sally Lenker, Chairman Donald Hahn, Vice-Chairman Rebecca Misangyi Colleen Ritter James Shincovich III. Approval of Minutes October 25, 2017 IV. Chair Report V. Public Hour - Hearing of Citizens VI. Financial Issues A. August 2017 Expense Voucher Approvals A recommendation of the Borough s 2017 audit was for the Redevelopment Authority (RDA) to begin formally approving expenses. Beginning July 1 st, the RDA will be approving expenditures at regularly scheduled meetings. Action Needed: Review and approve September and October expenditures B. Review of Proposed 2018 Redevelopment Authority Budget Staff will review the proposed 2018 Redevelopment Authority Budget. This review will include projections for the costs of operation for the Neighborhood Sustainability Program and economic development activities related to the State College Town Centre project. Action Needed: Staff recommends the RDA review the proposed budget and recommend it s forwarding to Council for their review as part of the 2018 municipal budget process. VII Meeting Calendar A. Draft 2018 Meeting Calendar VIII. Official Reports and Correspondence A. Borough Council

3 Page 2 of 15 B. Planning Commission C. Staff Reports IX. Upcoming Meetings December 20, 2017 at 12:00 p.m. X. Adjournment

4 Meeting Minutes State College Borough Redevelopment Authority October 25, 2017 The State College Borough Redevelopment Authority (RDA) met on Wednesday, October 25, 2017, in the Municipal Building, 243 South Allen Street. Chairman Lenker called the meeting to order at 12:05 p.m. Members Present Sally Lenker, Chairman; Donald Hahn, Vice-Chairman; Rebecca Misangyi, Colleen Ritter, and James Shincovich Others Present Ed LeClear, Planning Director; Anne Messner, Planner/Zoning Officer; Jenna Wargo, Planner; Maureen Safko, Senior Planner; Rhonda Johannesen, Planner-Housing Redevelopment Specialist; Denise L. Rhoads, Administrative Assistant; Bud Sweet, National Development Council (NDC); Chris Rand, Highland Holding Group; Lori McGarry, State College Area School District s Delta Program Teacher; and other interested parties Approval of Minutes A motion to approve the September 27, 2017 minutes as submitted was made by Vice- Chairman Hahn and seconded by Ms. Ritter. The vote was unanimously in favor. Chair Report Chairman Lenker stated she had been in a meeting earlier where they discussed a proposed new apartment complex behind the current Retreat which would be called Waupelani II. She stated it was a very interesting discussion. She also noted there was a possible sewer issue at 706 South Allen Street an Neighborhood Sustainability Program home staff just sold. Public Hour Mr. LeClear asked Lori McGarry of the State College Area School District s Delta Program to introduce herself. Ms. McGarry stated she was a Social Studies teacher and the class she brought along was discussing deliberating public issues. She noted they would be hosting a community forum and would share the details with the Authority. Economic Development Program State College Town Centre (SCTC) Redevelopment Authority Agenda Page 3 of 15 Mr. LeClear introduced Rhonda Johannesen who was recently hired as the Borough s Planner-Redevelopment Specialist. Ms. Johannesen stated she had a Real Estate

5 Page 4 of 15 background in multi-family and student housing. She had also been head of development for new construction for properties across the nation. Mr. LeClear gave a brief overview of how the SCTC proposal came about nearly one and half years ago. He noted it started with wanting to keep Discovery Space (DS) in the Borough. He stated from that point, the SCTC proposal came to be. Mr. LeClear stated the Request-for-Proposals (RFP) for the SCTC were due on September 15. At the September 27, 2017 meeting, representatives from the Highland Holding Group, Inc., the one team responding to the RFP, presented their response. Mr. LeClear discussed Why is a Town Centre Compelling : It would provide a unique opportunity for a transformative development. There was a need for an activated place where a mix of community focused uses intersected with: DS, modern office spaces, restaurants, retail, and owner-occupied housing. Visitors could be better engaged by the community. He noted the area would include: The Post Office, First National Bank drivethrough, the former Verizon building, the Allen Street lot, and the current Verizon building. Mr. LeClear noted the final evaluation findings were in favor of moving forward with this proposal. Mr. Sweet s presentation included: He explained, for the benefit of the Delta Program class, one way to make money was to become a real estate owner, but it was also one of the ways that had the most risks. He stated his company was confident the Highland Holding Group had the ability to take on a project such as this one. He noted there was a gap of funding which could be closed with equity. Equity was not debt. It was cash which would go into the project that could come from tax credits. It would increase the return for the developer and allow banks to underwrite loans. Mr. Sweet also stated his company had reviewed other companies who took on this kind of project around the country and this proposal fit well within the parameters. Mr. LeClear stated staff was looking for approval of a Memorandum-of-Understanding (MOU) or a Developers Funding Agreement (DFA). RDA s comments included: Vice-Chairman Hahn stated he was concerned about feasibility. He asked if two questions listed on NDC s memorandum to staff, asking if the Highland Holding Group had the ability to finance the proposal, and if they would ask the Borough for assistance, had been answered. Mr. Sweet stated yes to both.

6 Mr. LeClear stated, by asking to the Authority to consider an MOU or DFA, it did not mean they were moving forward with the proposal just yet. RDA shared their comments: Ms. Ritter asked what the proposed rent would be for DS. Mr. Rand stated his group had informal discussions with DS and talked about $12 to $12.50 per square feet. He noted the numbers were not concrete at this point. Mr. Sweet stated the number was a generous rate considering the location. Mr. LeClear stated Council had discussed the possibility of leasing the DS proposed space, should they not want it, to another non-profit group. Vice-Chairman Hahn made a motion recommending staff and the Borough Solicitor move forward with drafting an MOU or DFA and it was seconded by Ms. Misangyi. The vote was unanimously in favor. Official Reports and Correspondence Borough Council (BC): Mr. LeClear reported the Historical and Architectural Review Board discussion was continuing with the consultant. The consultant would be giving a report to Council on November 8, 2017 at 5:30 p.m. Real Estate Advisory Committee (REAC): Mr. LeClear reported REAC met earlier this month. They would be updating last year s annual report. He noted one point of discussion was to look at criteria for when we should stop trying to sell properties that were currently under rental leases and the leases expired. They also discussed working on a grant to be able to purchase student licenses. Mr. LeClear noted staff would then do some student home licensee prospecting and they would also look at employer supported housing discussions with Penn State University and other entities. Chairman Lenker asked Mr. LeClear to explain the NSP to the Delta Program class. Staff Reports: Mr. LeClear reported he and Mr. Sweet discussed some training opportunities for Authority members which would probably happen early in He noted there would be additional information in the future. Upcoming Meetings at 12:00 p.m. Adjournment Redevelopment Authority Agenda Page 5 of 15 With no further business to discuss, Chairman Lenker adjourned the meeting at 1:12 p.m. Respectfully submitted, Denise L. Rhoads, Administrative Assistant

7 Page 6 of 15 SCB RDA Voucher Report Check Date Range: 9/1/2017 to 9/30/2017 Page 1 of 2 VENDOR NAME ACCOUNT DESCRIPTION DESCRIPTION ACCOUNT CHECK NO NATIONAL COUNCIL FOR COMMUNITY DEVELOPMENT AMOUNT PROFESSIONAL SERVICES TECHNICAL ASSISTANCE - JUNE & JULY B , Check Number Total: 15, STATE COLLEGE BORO WATER AUTH WATER AND SEWER 461 E FOSTER - 4/26-7/25-0 MGAL B HIP Check Number Total: WEST PENN POWER COMPANY ELECTRICITY 63 KWH E FOSTER - 7/27-8/25 B HIP Check Number Total: CHRISTIAN T AUMILLER PROFESSIONAL SERVICES PROFESSIONAL SERVICES 7/12 & 8/22 B , WEST PENN POWER COMPANY ELECTRICITY 26 KWH N ALLEN - 8/15-8/29 B NSP05 Check Number Total: 4, Check Number Total: AMAZON CAPITAL SERVICES, INC AMAZON CAPITAL SERVICES, INC NITTANY PRINTING & PUBLISHING CO COLUMBIA GAS OF PENNSYLVANIA COLUMBIA GAS OF PENNSYLVANIA NATIONAL COUNCIL FOR COMMUNITY DEVELOPMENT PRINTING / COPIER SUPPLIES YELLOW TONER B PRINTING / COPIER SUPPLIES MAGENTA TONER B Check Number Total: ADVERTISING SEPT 11 REDEVEL AUTHORITY B NATURAL GAS 11 CCF N ALLEN - 8/10-9/5 B NSP05 NATURAL GAS 41 CCF N ALLEN - 8/10-9/5 B NSP05 Check Number Total: Check Number Total: PROFESSIONAL SERVICES TECHNICAL ASSISTANCE - AUGUST B ,500.00

8 Page 7 of 15 SCB RDA Voucher Report Check Date Range: 9/1/2017 to 9/30/2017 Page 2 of 2 VENDOR NAME ACCOUNT DESCRIPTION DESCRIPTION ACCOUNT CHECK NO PETTY CASH CAP PURCHASES - BUILDINGS REIMB - PETTY CASH B NSP08 AMOUNT Check Number Total: 7, , Check Number Total: 5, PHILADELPHIA INSURANCE COMPANIES PROPERTY INSURANCE PROPERTY INSURANCE N ALLEN B NSP Check Number Total: , Fund B114 Total: 32, Grand Total 32,549.54

9 Page 8 of 15 SCB RDA Voucher Report Check Date Range: 10/1/2017 to 10/31/2017 Page 1 of 1 VENDOR NAME ACCOUNT DESCRIPTION DESCRIPTION ACCOUNT CHECK NO WEST PENN POWER COMPANY ELECTRICITY 149 KWH E FOSTER - 8/26-9/22 B HIP04 J C EHRLICH CO INC REPAIRS & MAINT - BUILDINGS GENERAL PESTS SERVICE B HIP04 AMOUNT Check Number Total: Check Number Total: NATIONAL COUNCIL FOR COMMUNITY DEVELOPMENT PROFESSIONAL SERVICES TECHNICAL ASSISTANCE - SEPTEMBER B , Check Number Total: 7, NITTANY OIL COMPANY NATURAL GAS HEATING OIL B HIP04 JOSEPH C HAZEL INC REPAIRS & MAINT - BUILDINGS REPAIR - BOILER B HIP Check Number Total: Check Number Total: PHILADELPHIA INSURANCE COMPANIES PROPERTY INSURANCE ADD W LOGAN B NSP Check Number Total: URBAN LAND INSTITUTE DUES/MEMBERSHIPS/SUBSCRIPTI ONS MEMBERSHIP - LECLEAR B Check Number Total: , Fund B114 Total: 9, Grand Total 9,474.62

10 Page 9 of 15 B114 SCB REDEVELOPMENT AUTHOR 42 COMMUNITY DEVELOPMENT REVENUE: Account # Account Description 2015 Actual 2016 Actual 2017 Budget 2017 YE Proj Proposed % Change INTEREST AND RENTS RENT OF HOUSE/APARTMENT , , % This line item includes rent projected for Neighborhood Sustainability Program properties held by the Redevelopment Authority at an average of $1,500 per unit with the following unit inventory by quarter: Quarter : 7 units Quarter : 13 units Quarter : 17 units Quarter : 10 units INTEREST AND RENTS TOTAL $39,000 $201, % SPECIAL ASSESSMENTS SALE OF GENERAL FIXED ASSETS - 676,795 1,785, ,000 1,528, % This account reflects the estimated revenue of selling seven units (21 beds) in 2018 at a 20% reduction from purchase price to account for the removal of the Student Home license. All seven units are projected to be sold near the expiration of the current lease, which is typically in the July-August timeframe. SPECIAL ASSESSMENTS TOTAL - $676,795 $1,785,000 $589,000 $1,528, % DEBT PROCEEDS DEBT PROCEEDS - GO - NON ELEC 780,294-1,995,000 2,303,768 3,006, % This account reflects the estimated acquisition cost of ten units, three beds per unit, at an average price of $90,000 per bed, for the Neighborhood Sustainability Program. DEBT PROCEEDS TOTAL $780,294 - $1,995,000 $2,303,768 $3,006, % TOTAL REVENUE $780,294 $676,795 $3,780,000 $2,931,768 $4,735, % EXPENDITURES: OPERATING FUEL & LUBRICANTS HIP02 HEATING FUEL % FUEL & LUBRICANTS TOTAL $ % PROFESSIONAL SERVICE HIP03 LEGAL SERVICES % HIP01 TAXES/ASSESSMENTS - 9, %

11 Page 10 of 15 B114 SCB REDEVELOPMENT AUTHOR 42 COMMUNITY DEVELOPMENT Account # Account Description 2015 Actual 2016 Actual 2017 Budget 2017 YE Proj Proposed % Change CONTRACTED PUBLIC SVCS - 38,336 41,063 41, , % This appropriation is for Planning Department staff services relative to the administration of the Neighborhood Sustainability Program OTHER CONTRACTED SERVICES ,521 98,175 32, , % This line item includes funding for realtor fees and other carrying costs, such as taxes and utilities, of homes purchased and sold through the Neighborhood Sustainability Program. Projected inventory by quarter: Quarter : 7 units Quarter : 13 units Quarter : 17 units Quarter : 10 units PROFESSIONAL SERVICE TOTAL $800 $88,953 $139,238 $73,712 $238, % LAND/BLDG/FACILITIES REPAIRS & MAINT - BUILDINGS 4,222 6,647 43,750 25, , % This appropriation is for the rehabilitation costs for properties purchased through the Neighborhood Sustainability Program. This budget assumes a $25,000 expenditure for rehabilitation before selling the property. LAND/BLDG/FACILITIES TOTAL $4,222 $6,647 $43,750 $25,525 $175, % UTILITIES ELECTRICITY 1, % HIP03 NATURAL GAS % HIP01 SOLID WASTE DISPOSAL % HIP01 WATER AND SEWER % UTILITIES TOTAL $2,027 $1, % INSURANCE/RISK MGMT PROPERTY INSURANCE 825 1, , % INSURANCE/RISK MGMT TOTAL $825 $1, $1, % OPERATING TOTAL $8,671 $98,686 $182,988 $99,237 $415, % CAPITAL CAPITAL CONSTRUCTION

12 Page 11 of 15 B114 SCB REDEVELOPMENT AUTHOR 42 COMMUNITY DEVELOPMENT Account # Account Description 2015 Actual 2016 Actual 2017 Budget 2017 YE Proj Proposed % Change CAP PURCHASES - BUILDINGS 781, ,418 1,995,000 2,303,769 2,700, % This line item funds the purchase of 10 units (30 beds) at $90,000 per bed. The budget assumes 5 units will be acquired in the second quarter of 2018 and 5 additional units will be acquired in the third quarter of CAPITAL CONSTRUCTION TOTAL $781,262 $307,418 $1,995,000 $2,303,769 $2,700, % CAPITAL TOTAL $781,262 $307,418 $1,995,000 $2,303,769 $2,700, % DEBT DEBT LOSS ON SALE-FIXED ASSETS , % DEBT SERVICE - PRINCIPAL - 257,970 1,352, ,000 1,528, % This line item represents repayment of the Neighborhood Sustainability Program (NSP) line-of-credit. This budget assumes the loans associated with homes that were sold are repaid in-full to properly reflect the total cost of the program DEBT SERVICE - INTEREST 6,984 14,610 35,670 27,670 84, % Interest incurred on the Neighborhood Sustainability Program line-of-credit is posted to this line item DEBT ISSUANCE COSTS % DEBT TOTAL $6,984 $272,580 $1,597,715 $592,670 $1,612, % DEBT TOTAL $6,984 $272,580 $1,597,715 $592,670 $1,612, % TOTAL EXPENDITURES $796,917 $678,684 $3,775,703 $2,995,675 $4,728, % EXCESS (DEFICIT) OF REV OVER EXP ($16,623) ($1,889) $4,297 ($63,907) $7, % OTHER SOURCES (USES) OTHER USES INDIRECT COSTS (2,670) (4,297) (4,297) (4,297) (7,150) 66.4% This line item appropriation reimburses the General Fund for Central Services provided including Administration, Human Resources, Financial Services, Information Technology, and Facilities. Cost recovery amounts are determined annually through the Cost Allocation Plan. Current amounts are based upon actual costs from the 2017 Cost Allocation Plan. OTHER USES TOTAL ($2,670) ($4,297) ($4,297) ($4,297) ($7,150) 66.4% NET OTHER SOURCES (USES) ($2,670) ($4,297) ($4,297) ($4,297) ($7,150) 66.4% COMMUNITY DEVELOPMENT TOTAL: ($19,293) ($6,186) - ($68,204) $ %

13 Page 12 of 15 Account # Account Description 2015 Actual 2016 Actual 2017 Budget 2017 YE Proj Proposed % Change B114 SCB REDEVELOPMENT AUTHOR 44 ECONOMIC DEVELOPMENT REVENUE: INTEREST AND RENTS INTEREST EARNINGS % INTEREST AND RENTS TOTAL - $ % DEBT PROCEEDS SMALL BORROWING - CAPITAL 35,944-36,000 36,000 36, % Revenue received from Housing Transitions, Inc. for payment on the Kemmerer Road loan is included in this account. DEBT PROCEEDS TOTAL $35,944 - $36,000 $36,000 $36, % TOTAL REVENUE $35,944 $789 $36,000 $36,000 $36, % EXPENDITURES: PERSONNEL EMPLOYEE SUPPLY/EXPN PROFESSIONAL DEVELOPMENT ,250 2,250 5, % This line item funds two staff to take the Real Estate Finance (ED202) course through the National Development Council. EMPLOYEE SUPPLY/EXPN TOTAL - $997 $2,250 $2,250 $5, % PERSONNEL TOTAL - $997 $2,250 $2,250 $5, % OPERATING OFFICE SUPPLIES SUPPLIES % COMPUTER/COPIER SUPPLIES % POSTAGE % OFFICE SUPPLIES TOTAL $10 $86 $800 $800 $ % PROGRAM EXPENSES MEALS & MEETINGS % This line item covers lunch meetings for the Redevelopment Authority board. PROGRAM EXPENSES TOTAL $602 $716 $750 $400 $ % PROFESSIONAL SERVICE

14 Page 13 of 15 B114 SCB REDEVELOPMENT AUTHOR 44 ECONOMIC DEVELOPMENT Account # Account Description 2015 Actual 2016 Actual 2017 Budget 2017 YE Proj Proposed % Change PROFESSIONAL SERVICES - 42,620 65,500 87,217 40, % This account is for professional services related to real estate and/or economic activities of the Redevelopment Authority. Such services could include appraisals, pro forma development, assistance for request for proposal development, site survey and analysis, and engineering and other professional design costs. The 2018 appropriation funds the continuation of the Allen Street Civic District and State College Town Centre projects ACCOUNTING & AUDITING 2,700-2,700 2,700 2, % LEGAL SERVICES ,000 15,000 15, % DUES/MEMBERSHIPS/SUBSCRIPTIONS % CONTRACTED PUBLIC SVCS 34,497-20,530 20,530 46, % This line item includes a reimbursement to the General Fund for the costs associated with administration and delivery of economic development programs and services. PROFESSIONAL SERVICE TOTAL $37,597 $43,020 $104,130 $125,887 $105, % COMMUNICATIONS ADVERTISING 119 1,547 1,500 1,000 1, % COMMUNICATIONS TOTAL $119 $1,547 $1,500 $1,000 $1, % CONTRIBUTIONS/GRANTS COMMUNITY GRANTS/GIFTS 27,800 34,595 25,000 25, % This line item provides support for the Centre County Economic Development Partnership. CONTRIBUTIONS/GRANTS TOTAL $27,800 $34,595 $25,000 $25, % HOME OWNERSHIP ECONOMIC DEVELOPMENT PARTNERSH - - 6,000 6,000 6, % This line item provides funding for the Centre County Economic Development Partnership marketing and firm recruitment assistance. HOME OWNERSHIP TOTAL - - $6,000 $6,000 $6, % OPERATING TOTAL $66,127 $79,964 $138,180 $159,087 $113, % DEBT DEBT DEBT SERVICE - PRINCIPAL 6,600 8,200 9,200 9,200 9, % This line item provides for payment on the Kemmerer Road loan.

15 Page 14 of 15 B114 SCB REDEVELOPMENT AUTHOR 44 ECONOMIC DEVELOPMENT Account # Account Description 2015 Actual 2016 Actual 2017 Budget 2017 YE Proj Proposed % Change DEBT SERVICE - INTEREST 27,094 26,778 26,395 26,395 26, % DEBT TOTAL $33,694 $34,978 $35,595 $35,595 $35, % DEBT TOTAL $33,694 $34,978 $35,595 $35,595 $35, % TOTAL EXPENDITURES $99,821 $115,939 $176,025 $196,932 $154, % EXCESS (DEFICIT) OF REV OVER EXP ($63,877) ($115,150) ($140,025) ($160,932) ($118,335) -15.5% OTHER SOURCES (USES) OTHER SOURCES INTERFUND OPERATING TRANSFERS 174, , , , , % The line item appropriation is an Interfund Transfer of Realty Transfer Tax revenue from the General Fund to the Redevelopment Authority to support the activities and operations of the component unit. OTHER SOURCES TOTAL $174,564 $291,051 $177,000 $183,000 $147, % NET OTHER SOURCES (USES) $174,564 $291,051 $177,000 $183,000 $147, % ECONOMIC DEVELOPMENT TOTAL: $110,687 $175,901 $36,975 $22,068 $29, % SCB REDEVELOPMENT AUTHOR TOTAL $91,394 $169,714 $36,975 ($46,136) $29, %

16 2018 REDEVELOPMENT AUTHORITY MEETING CALENDAR-Draft Redevelopment Authority Agenda Page 15 of 15 JANUARY FEBRUARY MARCH S M T W T F S S M T W T F S S M T W T F S New Years/MLK Holiday President's Day PSU Spring Break APRIL MAY JUNE S M T W T F S S M T W T F S S M T W T F S Memorial Day JULY AUGUST SEPTEMBER S M T W T F S S M T W T F S S M T W T F S Independence Day/ Arts Fest Labor Day OCTOBER NOVEMBER DECEMBER S M T W T F S S M T W T F S S M T W T F S Veteran's Day/Thanksgiving Winter Holiday - Holiday - Arts Fest Noon RDA PSU Spring Break