ACTION REQUESTED:
Title
Communication from the City Manager and the Community Development Director with a Request to Concur with the Recommendation from the East Village Growth Cell Tax Increment Financing Economic Development Advisory Committee, and the East Village Growth Cell TIF Redevelopment Plan and Project, for the following:
A. APPROVE the EAST VILLAGE GROWTH CELL (EVGC) Housing Program and Associated Program Guidelines; and
B. APPROVE the Designation of $250,000.00 in Available TIF Increment to the EVGC HOUSING PROGRAM for 2016 and 50% of the Unrestricted TIF Fund Balance to the HOUSING PROGRAM for Subsequent Years Thereafter, for the Remaining Life of the TIF.
Body
BACKGROUND:
The EVGC Advisory Committee has been working diligently with residents of the neighborhood, for almost 5 years, to develop the guidelines for a housing program that will assist in the rehabilitation of existing housing stock and the increase of the overall value and attractiveness of the neighborhood. The process has been a very public and inclusive process, in an effort to create of program that would best serve the residents of the neighborhood.
Background on the EVGC TIF Redevelopment Plan:
On March 22, 2011, Council approved the EVGC TIF Redevelopment Program Plan and Project Area. The Study found that the Project Area is eligible for designation as a blighted area, due to the predominance and extent of the following blighting factors:
• Deterioration of buildings and site improvements,
• Code violations,
• Inadequate utilities,
• Excessive Vacancies and
• Lag in growth of equalized assessed value.
Due to the large amount of housing in the Project Area, a Housing Impact Study was required. The Study found that the area contained an estimated 3,232 residential units and based on the 2009 HUD Income Data, approximately 88% of the households within the study area qualify as very low, low, or moderate income.
To mitigate the blighting factors, the following Goal and Objectives were included in the Redevelopment Plan:
Goal: To create a safe, vibrant, attractive, walkable and affordable neighborhood within an existing urban setting that provides convenient access to jobs, shopping, parks, schools, and churches.
Objectives:
• Improve the quality of life for homeowners and residents in the East Bluff and North Side
Neighborhoods by assisting them with repairs and/or property improvements.
• Enhance the public improvements and infrastructure such as streets and utilities in the East Village Growth Cell to bring them up to modern standards and improve the safety and wellbeing of residents.
• Continue to work closely with OSF Saint Francis Medical Center to accommodate additional enhancements to their campus while ensuring continued compatibility with the surrounding neighborhood.
• Provide for new housing opportunities within walking distance to major employers such as OSF
Saint Francis Medical Center and other nearby employers in downtown Peoria.
• Better capitalize on the retail and commercial potential of the Knoxville Corridor, which has a traffic count of over 26,000 ADT.
• Strengthen and revitalize the Wisconsin Avenue Business District.
• Promote efforts to increase homeownership and curtail crime.
• Promote permanent job creation and employment within the medical complex and along Knoxville Avenue while providing construction jobs throughout the Project Area.
TIF Increment Update:
The following graph provides a summary of the TIF increment actual TIF increment for 2012 - 2014, estimated increment for 2015, and projected increment for 2016 - 2018:
Please note that there will be approximately $290,000 in TIF increment available, excluding increment generated by the OSF Master Redevelopment Area, at the start of 2016. This amount may vary slightly depending on the actual amount collected from taxes paid in 2015.
Currently Proposed EVGC Housing Program:
The Advisory Committee determined that it would facilitate the writing of a Housing Program to address the blighting factors in the TIF Redevelopment Plan. Prior to the final approval of the East Village Growth Cell Tax Increment Financing (TIF) Redevelopment Plan and Project on March 22, 2011, work had already begun on the creation of a Housing Program for residents within the East Village Growth Cell Boundary. City Staff began conducting research of other residential TIF programs in the fall of 2010, in conjunction with public meetings associated with the TIF Redevelopment Plan and Project. The EVGC Housing Program has undergone many changes since the start of the process, as well as significant changes since the last time the Council saw the document in March of 2011, and again in Issues Update in April 2012. The attached document of program guidelines (Attachment A) represents the most recent approval by the EVGC Advisory Committee on July 7, 2015. Please note that the program has changed from a grant/loan program to a 50/50 matching grant program. Please see the attached timeline for a history of the process involved in the creation of the program (Attachment B). The table below summarizes the key components of the program:
|
Program Element |
Detail |
EVGC Recommendation |
Staff Recommendation |
|
1. Program Type |
50/50 matching grant program |
Support |
Support |
|
2. Matching Grant Amount |
The East Village Growth Cell Housing Program will provide up to $15,000 in assistance to home owners for qualifying residential improvements. The minimum project is $2,000, with a minimum matching grant of $1,000 and the maximum project is $30,000, with a maximum grant match of $15,000. |
Support |
Support |
|
2. Qualified structures |
2. Owner Occupied Structures |
Support |
Support |
|
3. CDBG Fund Match |
If an individual lives in an owner-occupied house and has an income less than 80% of the area median income, the individual may qualify for a 100% grant. Community Development Block Grant (CDBG) funds, when available, may be used to pay for the owners match. |
Support |
Support |
|
4. Eligible Improvements |
1. Exterior Improvements 2. Mechanical Systems Upgrades 5. 3. Energy Efficiency Improvements |
Support |
Support |
|
5. Application Window |
Applications will be made available in January 2016. The City will begin receiving completed applications on February 15, 2016. Applications will be reviewed by City of Peoria staff, on a first come first serve basis in the order received. |
Support |
Support |
|
8. Contractor List |
A preapproved contractor list, specific to the EVGC Housing Program, will be created through a Request for Qualifications for General Contractors. |
Support |
Support |
|
9. Grant Administration |
The Community Development Department, Specifically the Neighborhood Enhancement Coordinator, will oversee the administration of this program. Grant applications will be reviewed by City Staff; individual applications will not be brought to City Council for review and approval. |
Support |
Support |
FINANCIAL IMPACT: $250,000 of TIF increment will be devoted the East Village Growth Cell Housing Program for 2016. For the consecutive years thereafter, 50% of the unrestricted TIF fund balance would be devoted to the Housing Program.
NEIGHBORHOOD CONCERNS: Significant public input was obtained through this process and the proposed program
IMPACT IF APPROVED: $250,000 of TIF increment will be devoted the East Village Growth Cell Housing Program for 2016. For the consecutive years thereafter, 50% of the unrestricted TIF fund balance would be devoted to the Housing Program.
IMPACT IF DENIED: TIF funds would not be devoted to a Housing Program.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Attractive Neighborhoods with Character: Safe and Livable
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
DEPARTMENT: Community Development