ED & Planning Committee Meeting Summary for January 28, 2009 Page 1 COMMITTEE AGENDA TOPICS I. Subject: Action: FY2010/FY2011 ED FOCUS AREA PLAN Final review by Committee prior to the Council Retreat. II. Subject: Action: SMALL BUSINESS and ENTREPRENEURIAL DEVELOPMENT Review of information requested by the Committee on: Resources for Start-Up Entrepreneurs Small Business Resource Event III. Subject: Action: NORTH TRYON RFP Update Committee on RFP changes and input from private sector developers. IV. Subject: Action: FIRST WARD PARK/PARKING DECK Update Committee on status and discuss “Workforce Housing” component. COMMITTEE INFORMATION Present: Time: Council members: John Lassiter, James Mitchell, Nancy Carter, Anthony Foxx, and Patsy Kinsey 12:00p.m. – 1:15 p.m. ATTACHMENTS 1. 2. 3. 4. 5. 6. FY2010/2011 ED Strategic Focus Area Plan Resources for Start-Up Entrepreneurs Small Business Resource Event North Tryon RFP Uptown Residential Market Issues and Policy Implications for First Ward Park Project Existing Public/Private Partnerships: Affordable/Workforce Housing Requirements DISCUSSION HIGHLIGHTS I. Subject: FY2010/FY2011 ED Focus Area Plan John Lassiter, Chair: The first item on the agenda is a review of the latest draft of our ED Focus Area Plan, you have that in front of you. Ron has one change on there and then I will open it up for discussion. Kimble: This is not your final review, but your final review before the retreat. You will have plenty of time to talk about the Focus Area Plan at that retreat. I know Economic Development Initiative Number One you have three different numbers, 1, 2, & 3 in the first initiative. I would suggest that there was not an action verb. Starting with number 2, it says “with close attention to needs of Charlotte’s largest employers”. I think putting an action verb addressing the needs of Charlotte’s largest employer would read better, so it’s just a readability issue. That is the only change, everything else is as we thought that you wanted it, redrafted for this meeting today. If there are last minute reviews that you want to conduct and tweak this better; it’s up to you as a Committee. (Comment by Foxx (?) Kimble: We had not explored that in depth, one of the things we could do is we could receive feedback from many different groups including the Council Members yourselves. Also conduct some focus group follow-ups to some of the things we have done including, ED & Planning Committee Meeting Summary for January 28, 2009 Page 2 Foxx: Kimble: Carter: Kimble: Lassiter: Carter: Lassiter: Carter: Carter: Lassiter: Kimble: Lassiter: Kimble: Lassiter: NAIOP, the National Association of Industrial and Office Properties, the Chambers Land Use Committee and residents in this community. We can talk about that in focus group studies and make sure we are getting a list of those things that represent barriers and some of the trip-ups that have occurred in the past. We could work toward a list and then work toward how would attempt to rectify the barriers that some people are facing. I think we have some great data from past focus groups that probably need to be updated in light of the present economic climate. Doing that as an update is one way of going forward. I think that is wise. Mr. Foxx is referring to two days ago when we met for Transportation Committee. They added in their draft, creating clear lines of authority to the Planning Director for application of USDG, Urban Street Design Guidelines standards, in the development, rezoning review process. It was specific to USDG and that is why it was appropriate for the Transportation Committee. I think it fits in to the large context of eliminating barriers. There is a development that I found out about today, in Matthews that is reconstructing their code for rezoning. What they are doing there is allied to a healthier environment. I hope that along the way we can partner with them. We will reach out to them and maybe others to see what they are doing and maybe include that in the research work that we are doing. There is effort underway to study some of this. I had a conversation several weeks ago about potentially matching up some of that data in analysis. That may be another source, better information, as well as coming up with a measure so that we know where we are. As we look at that we will find a tool that will help us figure out what that is. Regarding the introductory page of the FY 2010/2011 ED Strategic Focus Area Plan, I understand you have economic challenges, but the statement as a whole is negative; that concerns me. I wonder how widespread this whole entity will be? I am not sure I want this on a national website. I don’t want to publish what we see as our challenges I would rather those challenges be seen as opportunities. The third paragraph, second from the bottom, I propose an additional sentence that would read, “however a well educated workforce and the availability of office space and a vibrant City Center can be viewed as positive”. I am really concerned at what the perception is, because I do think there are some challenges. I think we can turn it around and not present what we face but a face of opportunity. Anyone can pick up the paper and see that this is not news. Is what we have following that shows we are working aggressive issues, that shows a proactive strategy. The third sentence in that targeted paragraph. “However, the loss of Wachovia’s headquarters will result in job losses and increased Center City office vacancy.” Something to amend that sentence, such as, “The workforce that Charlotte offers has educated industries, prime office space is now available in our area.” Taking the negative and turning it positive. The City will market a talented workforce and available Center City office space. I think the point is a good one, and we will ask staff as we prepare for the Retreat, to create something that will give us a less pessimistic outlook. We will be glad to do that as an alternative. I think what Ms. Carter may be saying is not necessarily eliminated any verbiage but making another sentence that tags on to the end of it, that makes it clear that there is an opportunity. Are there any additional suggestions on this draft? We don’t have to have a vote; I would like just a consensus for the Council Retreat. Right. The next item on the agenda, I give credit to Mr. Mitchell for suggesting. Trying to find some ways during this economy, to redouble our efforts to work with small businesses. To do that we will begin a process to come up with a simple strategy. ED & Planning Committee Meeting Summary for January 28, 2009 Page 3 II. Subject: Small Business and Entrepreneurial Development Flynn: As part of your last conversation, you raised questions, what do we need to do to assist businesses in developing plans for success? There is a list of business development resources attached to your agenda, including website addresses for the U.S. Business Advisor, SBA, SBA Office of Advocacy, Minority Business Online Community and many others listed in the handout. Additionally to that on our website we share this and other information with companies. How will people know how to find this, do people just walk in or call on the phone? We have printed information at our front desk as well as answer inquires by phone. The question is what are we doing to help at this time to help small businesses? Attached is an idea supporting a small business resource event. What are the areas that we need to focus on? Our focus is on SBEs and other corridor businesses. The goal is to communicate and provide information to the public sector on the economy. There needs to be more discussion around what are the financial issues confronting small businesses? What are some of the other resources that are available? Is that appropriate? Is that what you are looking for? There was significant effort put out on the Central Avenue corridor, I think it underlines ways and resources to be helpful in the community. I think we talked about this at our last meeting. We did a similar advent about three years ago. I think there would be more interest now because folks are trying to find a way to get a business started and find access to information. I think even meeting on Saturday morning so it will not interrupt a business day. Working eight to five and trying to start something new during the week is difficult. We think this is a good idea, you think this is a good idea. What we need to figure out is when and how you bump it up to the full Council, so that you can get blessings on this. We think it’s a great idea so when you go to Retreat and go over the Focus Area Plan, it may come out as an idea there. Eventually we need to bubble it up to full Council, get their blessing, because we are going to be spending some money. Why don’t we just put that in there as an initiative to be accomplished in the quarter? Remember this is for next year. I failed to plan on that one. I do think we really need to watch spending and that we need to do it where it won’t cost us any money. Provide soft drinks and coffee, not dinner. Are there any additional thoughts or comments? You and I had a good conversation, good job. The third item on our agenda is an update on the North Tryon RFP. Foxx: Flynn: Carter: Lassiter: Kimble: Lassiter: Kimble: Lassiter: Mitchell: Lassiter: III. Subject: North Tryon RFP Warshauer: At the last meeting, we were talking to developers to get an opinion about releasing the RFP’s for this project. The comments we heard were regarding the availability of financing and the fact that there were no other projects of this type. Reasons to release the RFP at a later time include securing financing and the possibility that finding tenants will be difficult. If you have no interest from developers when the RFP is released there could be further damage to the North Tryon image. Mitchell: We don’t have a North Tryon Streetscape plan do we? Warshauer: We have developed a plan in our study. Kimble: It only goes from where to where? Warshauer: It goes from Brookshire to about 36th Street. Kimble: Now that you are making the decision about where the light rail is going to stay there is a gap there that needs to be addressed. Kimble: Knowing how we are structuring the Retreat next week, we pose this question to you to stimulate discussion among Council Members on North Tryon Corridor. Lassiter: We don’t have active development in this corridor. If we were to get too far out ahead, would we strain the stretch we are trying to develop? What I am asking is, are ED & Planning Committee Meeting Summary for January 28, 2009 Page 4 Warshauer: Lassiter: Lassiter: there places where we might want to help shape development? Yes, when we developed that plan we looked at the long range plan. There were developers buying property for development. The infrastructure does get changed as development occurs. Can we come up with strategy choices where we would take some of our available funds and begin to deploy those in a way that gets things happening? Get those things cued within our capital improvement plan. The message I hear is that there is no money for rebuilding, there are no tenants. There is limited money for office and very little money for apartments. IV. Subject: First Ward Park/Parking Deck Lassiter: The last item on our agenda is an update on the First Ward Park and Parking Deck. Flynn: I am going to give you an update and then I am going to ask Peter Zeiler to walk you through the “Workforce Housing” component of this project. The Infrastructure Grant Agreement is estimated to be $4.5 million to $5 million. This was confirmed by bids received from contractors Jones Lang LaSalle. The price does not include cost upgrades to 8th Street nor does it include cost of wires and cables underground. Now I am going to turn you over to Peter for a status and discussion on Workforce Housing. Zeiler: There are two handouts in front of you one is “Existing Public/Private Partnerships: Affordable/Workforce Housing Requirements” and the other is “Uptown residential market Issues and Policy Implications for First Ward Park Project”. When considering public-private redevelopment partnerships, it makes sense for the City to explore how other public policy goals may be achieved as a result of the partnership. The First Ward Park project accomplishes several public policy goals. Higher education campus, open/park space and new residential, office and retail opportunities with an increased tax base. Given the recent dramatic growth of residential space in Uptown, it is prudent to ensure the housing market is well balanced and open to many. The primary need in Uptown is expanded access to rental units affordable to households at 80% AMI. Only 11% of the built for sale units are affordable for someone in the 125% range or less. In the rental market area an average 2 bedroom unit is affordable to 100% AMI. From our prospective and looking at the market, our recommendation is that we negotiate terms in development agreements that ensure a base level of rental residential units affordable to 80% - 110% AMI. This would be for an extended period of time, such as twenty (20) years with appropriate damages for failure to meet obligations. No additional public monies are provided to the developer for these units. Kinsey: What is the AMI? Zeiler: It’s 54,000 AMI regionally for a house of four. Foxx: I appreciate the work and the struggle with affordable housing or rather the lack of housing at 80%. I am a resident in a neighborhood with 30% or more of affordable housing. Lassiter: I am not encouraging or promoting subsidized housing. I think the issue raised, to encourage workforce housing, as part of this simply because of the gap in opportunity. There is going to be, I think, more for purchase priority in Center City in the short term. Part of what is planned here is a mix of rental and purchase at more of a market rate, workforce housing. I don’t want to try and figure out how to derive additional public housing. Stimulate economic development in the area convenient with parks and public institutions. Finding a way to have workforce available within that area that fits. You can literally walk under the 9th Street Bridge and have significant affordable housing, all within walking distance. Then you have the Blue-line extended all the way out. I think we should have staff look at this, there seems to be a gap in willingness on the part of the developer. Before we get too far along I want to get a sense, that this is that what the Committee wants us to do? I don’t want to send staff on a snipe hunt. If in fact the Committee wants more analysis, then figure out what that cost would be. Jeff Brown is here. ED & Planning Committee Meeting Summary for January 28, 2009 Page 5 Jeff Brown King & Spalding: I think this is a great discussion. We agree with staff as to the for sale units. Kinsey: I agree with both of my colleagues on the 30%, but this is probably not the place to put that. Mitchell: It would be important to show ratio between rental and ownership in First Ward as it is at this time and then show the possible impact. Lassiter: We may have to work with the developer on various scenarios. Carter: I do not know the mix in the I-277/77 area, I don’t think it’s limited to just First Ward. Lassiter: I think the consensus is that the Committee supports the idea of some Workforce Housing, integrated into the site, knowing there is no public land to support that. We would like for you to continue this conversation to do that, do you need a formal? Flynn: Not really we were just looking for direction. Foxx: I want to restate and make clear that I do appreciate the conversation. Lassiter: That is the last item on the agenda. Our next meeting is on February 18th. Kimble: We probably should have conversation with you about whether you want to change that program or leave it as it is. V. Next Meeting The next meeting date is scheduled for February 18, 2009 at 3:30pm. The meeting adjourned at 1:15 p.m.