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HomeMy WebLinkAbout07-14-97 Finance Committe Minutes - Old Dublin loanFinance Committee of Dublin City Council Minutes of Meeting July 14, 1997 6 p.m. - Council Conference Room Attending Joel Campbell, Chairperson Cathy Boring Tom McCash Marsha Grigsby Melody Kennedy Joan Eggspuehler, Old Dublin Association Mr. Campbell called the meeting to order at 6:10 p.m. Old Dublin Financial Incentives Ms. Grigsby provided a brief history of this matter, stating that staff has been reviewing various programs to help facilitate business development in Old Dublin. She summarized what the City has done over the past years to improve the Old Dublin area - capital improvements including street lights, sidewalks, landscaping, and the Kiwanis Park. The Division of Community Relations has staged events in Old Dublin and holiday sales to boost pedestrian traffic in the shopping district. Staff is proposing that Council offer a low-interest loan program to assist with business development. This program is structured as a "Linked Deposit Program" wherein the City sets aside money for the program in a special fund at a bank and the bank offers loans to qualified applicants at areduced interest rate of up to 3 percent below prime. In response to questions from the Committee, Ms. Grigsby stated that a Community Reinvestment Area would not be feasible for this area. She noted that a recent article in The Columbus Dispatch described a special property tax assessment set up for the Short North area of Columbus to help improve it. A coordinator was hired for this program. The assessments are voluntary. Mr. Campbell noted that Mrs. Stillwell had faxed a memo to the Committee today with some ideas of how other cities have dealt with improvements for special areas. He pointed out that the City has invested lots of dollars in the Old Dublin capital improvements over the past years. He asked Mrs. Eggspuehler how much interest there would be in subsidized loan programs for businesses. Mrs. Eggspuehler responded that there would likely be interest, but typically, people think more in terms of property tax abatement incentives. Personally, she has been involved in recent renovation work in the Old Dublin area which turned out to be very costly. Mr. Campbell added that the Community Development Committee is reviewing the Dublin Code for possible revisions for the Old Dublin area. They are looking into a "one -stop -shopping" type of process for variances for the older buildings. The Committee is considering the possibility of a special district for the Old Dublin area in view of the nature of the buildings. This would then allow Finance Committee July 14, 1997 Page 2 applicants to appear before one body regarding all of their requests. He added that tax abatements and TIF's would not work for Old Dublin as there would not be a significant increase in tax that would result from development. However, the low interest loan program is a good option. The applicants would likely have to meet some established criteria. Mrs. Eggspuehler noted that any assistance provided by the City would be helpful. Purchasing and renovating buildings in Old Dublin is very cost prohibitive, and the review process with the City is also expensive. Mr. Campbell stated that he would like to have some type of informational brochure developed for businesses in Old Dublin to inform them of the process for fee waivers for applications, about the low interest loan program, and various things the City does for the Old Dublin area Mrs. Eggspuehler noted that the Old Dublin Association is searching for a downtown coordinator who would provide this information to business owners. Presently, people call the Chamber of Commerce to find out information about starting a business in Old Dublin. The fees involved and approval process is overwhelming to some prospective business owners. Mr. Campbell commented that Mary Bearden serves as the City's Economic Development Coordinator and it sounds as if there is a need to have a coordinated effort with the City to respond when these calls come in. If the low interest loan program is approved, there will be some other efforts needed to make sure it is effective. At this time, Mrs. Boring and Mr. McCash arrived. Ms. Grigsby stated that the low interest loan program could be fashioned in whatever way Council wants it defined - the terms of the loan, stipulations on types of businesses, and the criteria for applying. Mr. Campbell stated that as a follow-up to the recommendation from this Committee and the Community Development Committee regarding facilitating business development in Old Dublin, he would like to have a process in place in the Development Department to disseminate the information. While the City has a tendency to respond quickly to the multi-million dollar development proposals, it is important as well to respond to requests about Old Dublin to maintain the sense of community and establish a focal point for the center of town. Mr. McCash stated that he has spoken with a representative of Fifth Third Bank in Dublin who is interested in some type of community reinvestment area for Old Dublin. He and Larry Frimerman met with the Department of Liquor Control regarding re -working the liquor license laws to exempt the licensing provisions for Old Dublin. If Council concurs, they would pass a resolution stating that the City supports having an additional liquor license issued. The State would also to have to approve legislation to effect this. The City would have to identify a sponsor for this type of Finance Committee July 14, 1997 Page 3 legislation at the State level. Mrs. Boring asked how the City would select lending institutions for a low interest loan program. Ms. Grigsby responded that the bank would likely be the one with which the City has a depository arrangement. Discussion continued regarding the low interest loan program and what impact it would have and on how many businesses. The types of uses for the loans was discussed as well. The consensus of the Committee was to support retail and restaurant uses because of the flavor of what they would like to see develop in the Old Dublin area. Mr. McCash stated that he discussed with Peter Lenz the building codes presently in place for the historic district. Mr. McCash suggested having architectural students from OSU do some of the preliminary review work in the Old Dublin area on a volunteer basis. Perhaps some bed tax monies could be allocated to support this effort. Discussion continued regarding the low interest loan program. Ms. Grigsby explained that the City would deposit money in a Certificate of Deposit and instead of receiving 6 percent interest, the City would receive 3 percent interest. The remaining 3 percent would be used to write down the cost of the loans. The cap for the loans and the length of the terms would be up to Council to determine. Mr. Campbell asked how much the City could realistically deposit into this program. Ms. Grigsby responded that in terms of cash availability, an amount of $500,000 would be realistic. Mr. McCash stated that he would like to see the money used for long-term improvements and have a cap in an amount of $20,000. He suggested reviewing each application as it comes in, as some of the buildings need major renovation. Discussion followed about loan caps and the possibility of having two separate loans for a unique application. Mrs. Eggspuehler noted that assembly uses such as a restaurant or bar could easily cost $100,00 to $300,000 in renovation work. Following discussion, Mr. Campbell summarized that the Committee is considering recommending to Council a Linked Deposit program in the amount of $500,000; the program would be for 5 -year loans with a maximum amount of $50,000 per loan, with the possibility that in unique circumstances more than one loan application could be considered for a property; the review process would be coordinated by the Finance Committee similar to the bed tax process; and the funding would be for projects unique to Old Dublin. The criteria for the loans would be that it be located in Old Dublin, that it be a commercial/retail venture, and that it complies with the zoning in that area In addition, the Finance Committee recommends support ofthe Community Development Committee's efforts to Finance Committee July 14, 1997 Page 4 create a one-stop shopping process for applications in Old Dublin. Mr. McCash suggested that applications for the low interest loans also be reviewed by the Architectural Review Board. Mr. Campbell concurred. Ms. Grigsby suggested that the architectural students could work in the Building Division in an intern capacity. Mrs. Boring added that the 3 percent interest rate assistance would be her preference. She is not ready to endorse the architectural student intern concept at this time without further investigation. Mr. McCash suggested that he could arrange to have architects in the community volunteer to supervise the students' work. Mr. Campbell moved thatthe Finance Committee recommend to Council that Council authorize staff to prepare legislation for the Linked Deposit Program subject to all of the terms and conditions as outlined in the minutes of this meeting, and that this be reported to Council at the neat meeting following distribution of the minutes. Mrs. Boring seconded the motion. Mrs. Boring asked that information about these loans be included in the neat Council packet along with a staff recommendation. Mr. Campbell stated that he would like to amend the motion to endorse the one-stop Code variance process being investigated by the Community Development Committee. Mrs. Boring seconded the amended motion. Motion carried. Code Enforcement Ms. Grigsby stated that the issue with code enforcement is that some violators simply pay the fee and do not comply with Code. The goal is compliance with the Code, not to generate revenue from fees. Staff is therefore recommending that in the Cost of Services study update this year that a note be added that this issue be reviewed further. Mrs. Boring noted that she discussed this with Greg Jones and he has a proposal for dealing with enforcement which would require additional computer equipment. Ms. Grigsby responded that Mr. Jones' plan is similar to the way the Police Division handles Code enforcement violations in that if they don't comply, there is a mandatory court date. Mr. Campbell moved that the staff's recommendation be adopted in the Cost of Services study update this year, with the stipulation that this be reviewed neat year and consideration given to change this from a fee to a citation. Finance Committee July 14, 1997 Page 5 Mrs. Boring seconded the motion. Motion carried. Other Business Mrs. Boring asked if the park issues could be considered during the first session of the CIP review. Ms. Grigsby stated that this year's CIP presentations will include the status of projects instead of focusing on the revenue portions. Mr. Campbell stated that he is agreeable with the Parks portion being considered first on the CIP agenda. The meeting is scheduled for Wednesday, July 23 at 7 p.m. The meeting was adjourned at 7:15 p.m. wlm�620�1eX4 Clerk of Council