Local Revitalization Financing District

Wenatchee Waterfront

Presentation Goals

Staff is beginning the process of pursuing a state Local Revitalization Financing (LRF) grant and desires council feedback.

We will provide an overview of the LRF program in preparation for potential council action near the end of August

Answer questions regarding the process

Introduction The City has made significant progress in implementation of projects

identified in the 2004 waterfront subarea plan. These projects include Riverwalk Crossing, Fifth Street Bicycle Lanes, Thurston Underpass, Walla Walla Avenue and the Town Toyota Center, and Riverside Drive. All of the proactive planning and associated accomplishments to date have provided us with the opportunity to pursue multiple grant programs to further encourage economic development and revitalization of the waterfront.

The City’s investment in providing public infrastructure has generated momentum in private development as predicted in the waterfront subarea plan; specifically adaptive reuse of an abandoned steel fabrication facility to create public market with low cost space designed to facilitate new business development (incubator). This Pybus Market becomes the anchor supporting the growing farmers market, a hotel, restaurant, and other economic development.

The Local Revitalization Financing legislation is designed to support these efforts.

Objectives

Continued Implementation of Waterfront Subarea Plan

Continue to Enhance Uniqueness of the Wenatchee Waterfront Through Development of Additional Public Amenities and Private Investment

Improve Economic Vitality of Wenatchee

Address Municipal Brownfield at former Public Works

Approach Build Infrastructure to Facilitate Revitalization Leverage Funding (Potential Funding Sources)

Local Revitalization Funding (LRF): Maximum of $14M Port of Chelan County US Economic Development Authority: $1.0-1.5M Federal Congressional Appropriation: $1.5M Brownfield (EPA/DOE): $2.0M Recreation and Conservation Office (RCO): $1M Storm Water Utility: $0.5M Dept. of Commerce (CTED): $2.0M (Revolving Fund Loan

Program for Brownfield Cleanups)

Total Identified Potential Funding: $22M

What Is Local Revitalization Financing? The Local Revitalization Financing (LRF) Program was created by

Second Substitute Senate Bill 5045 (2SSB 5045), passed by the WA State Legislature in 2009. The LRF program authorizes cities and counties to create “revitalization areas” and allows certain increases in local sales and use tax revenues and local property tax revenues generated from within the revitalization area, additional funds from other local public sources, and a state contribution to be used for payment of bonds issued for financing local public improvements within the revitalization area. The state contribution is provided through a new local sales and use tax that is credited against the state sales and use tax (sometimes referred to as the “LRF tax”). This tax does not increase the combined sales and use tax rates paid by consumers.

Local Revitalization Financing Process Identify Redevelopment Area Identify Infrastructure Projects Benefiting Revitalization Area Notify Taxing Districts of Intent to Create a Revitalization Area Develop Tax Increment Estimates Gather Letters of Intent from Private Developers Dev. Interlocal Agreements with Participating Local Governments Consider Taxing District Ordinances (Participation) Pass an Ordinance Creating the Revitalization Area (Public Hearing) Submit Grant Application to State Department of Revenue Begin Collecting Increment Issue Bonds within Five Years Construct Projects Process Completed within 25 Years of Creation Ordinance

Proposed Public Projects Pybus Market:$1.5M

Public Works Brownfield Remediation / Eco-Marina – est. project cost: $7M

Treatment Plant - Odor and Visual Mitigations: $8M (included as match)

Waterfront Gateway Enhancements / Extend Orondo Street: $0.5M

Row and Paddle Facility – Parking and Development: $0.5M

Total: $17.5M

Schedule

2009-2011: Secure funding (LRF Grant) 2010-2012: Pybus Market Construction/Private Construction 2010: Update Targeted Brownfield Assessment and Prepare

Remedial Action Plan 2011: Parking Lot Enhancements (Row and Paddle Club) 2012: PW Site Remediation Design 2014-2015: PW Site Remediation Construction