CITY OF TALLAHASSEE
CITY COMMISSION AGENDA ITEM
ACTION REQUESTED ON: September 23, 2009
SUBJECT/TITLE: Discussion of Application for Temporary Economic Emergency Concurrency Relief—Mahan Village/New Horizon Development
TARGET ISSUE: N/A

STATEMENT OF ISSUE

On April 22, 2009, the City Commission adopted the Temporary Economic Emergency Concurrency Relief Program to assist the private sector in withstanding the current economic crisis. The program was designed to provide a time-limited incentive to stimulate development activity and job creation in the short-term. Representatives for the Mahan Village/New Horizon Development have submitted an application for concurrency relief under this program.

RECOMMENDED ACTION

Option 1: Adopt the concurrency agreement included as Attachment #1, which provides a 75% reduction in transportation concurrency mitigation dollars required for the project.

FISCAL IMPACT

Approval of the request reduces the amount of transportation concurrency mitigation dollars collected by $2.625 million (from approximately $3.5 million to approximately $875,000). This item is related to the Linear Infrastructure Application for the Weems Road extension and the developer has committed to $1.25 million for roadway construction and associated stormwater facility. Plus, the developer will dedicate additional right-of-way with an estimated value of $250,000. It is important to note that these figures are based upon the consultant’s estimates. A formal application has not been submitted for review so the actual numbers may vary slightly from the estimated figures. The Budget Office has reviewed this agenda item and concurs that it meets City budget guidelines.

Robert L. Herman, Growth Management Department

Anita Favors Thompson, City Manager

For information, please contact: Karen M. Jumonville, 891-7030/Robert L. Herman, 891-7015.

SUPPLEMENTAL MATERIAL/ISSUE ANALYSIS

HISTORY/FACTS & ISSUES

On April 22, 2009, the City Commission adopted the Temporary Economic Emergency Concurrency Relief Program. The program was designed to facilitate progress on development projects while providing the Commission with assurances that the projects will be built in a timely manner and provide an overall community benefit. Since there is no single formula applicable to all potential development scenarios, the program utilized a more open-ended approach that provides flexibility to consider design elements, on a case-by-case basis, so that the overall character of the development could be taken into account. Rather than implementing an exhaustive or mandatory list of enhancements required to demonstrate that a project has provided a community benefit, the program identified the following guiding elements that may be deemed to constitute a public benefit: mixed-use developments; buildings with green roofs; the use of low-impact development techniques; preservation of existing trees (in excess of what is already required by the Land Development Code); energy efficient buildings/green buildings; inclusionary housing; developments that facilitate the creation of new jobs; and transit enhancements such as park and ride facilities.

The adopted program established an application process that runs through December 1, 2009, and allows the City Commission (through a concurrency agreement) to reduce concurrency fees by a maximum of 50% for new development and a maximum of 75% for redevelopment for all non-residential projects outside the multi-modal transportation area. The program also established that the Commission may reduce concurrency fees by a maximum of 50% for new development and a maximum of 75% for redevelopment for all projects (residential and non-residential) within the multi-modal transportation area. The program specified that the amount of reduction would be established through the provisions of the concurrency agreement. Finally, in keeping with the overall goal of stimulating the economy in the short-term, the program stipulated that construction commence no later than December 31, 2010, and show continuous progress. Continuous progress is defined as a minimum of one approved inspection every 180 days.

Representatives for the Mahan Village/New Horizon project have submitted an application for consideration under this program (Attachment #1, Exhibit D). The project is located on the north side of Mahan Drive, just east of Capital Circle Northeast. (Attachment #1, Exhibit B). Specifically, the application includes a request to reduce the traffic concurrency mitigation dollars by 75% (from $3.5 million to $875,000). The application identifies a number of community benefits associated with the project, including 168 permanent jobs and 568 construction jobs. The applicant indicated that the projected number of permanent jobs reflects the additional jobs anticipated as a result of the new development (not including the jobs associated with the existing grocery store across the street that will be moving to this development).

The Economic Development Council (EDC) estimates that the development will generate a projected economic output (the value of goods and services produced across the local economy due to construction of the shopping center) of $23.4 million and $69.8 million, respectively. The application (Attachment 1, Exhibit D) also identifies community benefits associated with the project, including positive economic impacts, sound site design principles, energy efficiency/green building practices, employment, transportation, and redevelopment of an existing site. The specific commitments, which are outlined in a Concurrency Agreement (Attachment #1), include the following:

• Use of the stormwater management facility as an underground cistern to collect runoff to be used for irrigation;
• Dedication of right-of-way for future roadway connection on the parcel adjacent to the north;
• Use of porous materials for a minimum of 13% of the parking spaces;
• A minimum of 50% of the trees planted for landscaping will exceed the minimum 2’’ caliper requirement;
• Use of drought tolerant landscape materials to minimize irrigation needs;
• Wood used on the project will come from sustainably-harvested forest, as certified by the Florida Stewardship Council;
• Benches and other enhancements will be constructed from recycled materials;
• Designated preferred parking areas will be provided for hybrid vehicles and employee carpools;
• The number of bicycle racks provided will exceed the minimum code requirements;
• The roofs will consist of highly reflective white EPDM roofs to reduce heat loads;
• All structures will be equipped with high efficiency HVAC units with a minimum SEER rating of 15;
• All storefront windows will have Low-E glazing in order to reduce heat;
• All building insulation in walls will exceed the Florida Building Code requirements by providing a minimum R21 rating;
• Building waste from the demolition of the existing Proctor Buick and GMC automotive dealership buildings will be recycled;
• On-site recycling of cardboard, plastic, and glass will be provided;
• Restaurant uses will be required to install water efficient 1 gallon per flush toilets and waterless urinals in men’s rooms;
• All non-anchor tenants will be required to use low volatile organic compounds (VOC) paints, sealants, and other adhesives; and
• All non-anchor tenants will be required to use solar powered water heater systems.

It is important to note that the enhancements stipulated above do not apply to the proposed grocery store site, which is referred to as “Building 6.” However, they do apply to the second anchor store and all non-anchor stores. The applicant has proposed the following enhancements to Building 6:

• Larger service sinks will contain ultra low-flow aerators to reduce water consumption;
• The hot water storage tank has equipment installed to reclaim waste heat from the refrigeration units;
• The HVAC includes secondary cooling technology;
• The a/c uses R410-A, the latest non-chlorine refrigerant which is more efficient;
• Use of an energy management system to control energy usage;
• Use of LED technology for freezer and cooler lighting applications;
• Occupancy sensors will be utilized on individual aisles to control lighting;
• Track lighting will be utilized for new high-efficiency lamps; and
• Recycling food waste.
  

Staff Recommendation:

Based upon the information outlined above, staff recommends a 75% reduction in concurrency mitigation dollars required for this project. Specifically, this would reduce the amount of concurrency dollars collected from an estimated $3.5 million to $875,000, which represents a reduction of $2.625 million. Staff is recommending the maximum reduction based upon the commitments outlined in the Concurrency Agreement (Attachment #1) including energy efficiency/green building practices, job creation, and the use of sound site design principles. Staff also believes the proposed application furthers the City’s overall goal of stimulating the economy in the short-term, because, consistent with the terms of the program adopted by the Commission, the proposed concurrency agreement (Attachment #1) stipulates that construction must commence no later than December 31, 2010 and show continuous progress. Continuous progress is defined as a minimum of one approved inspection every 180 days.

CHARITABLE CONTRIBUTIONS

N/A

OPTIONS

1. Adopt the concurrency agreement included as Attachment #1, which provides a 75%
reduction in transportation concurrency mitigation dollars required for the project.

Pros:

• Creates jobs.
• Provides incentives for a project that exceeds code requirements for energy efficiency.
• Reduces the cost associated with development for the private sector.
• Stimulates economic development.

Cons:

• Reduces the amount of concurrency fees collected for transportation improvements.

2. Adopt the concurrency agreement included as Attachment #1 but revise the document to reflect a different percentage of reduction in transportation concurrency fees.

Pros:

• Creates jobs.
• Provides incentives for a project that exceeds code requirements for energy efficiency.

Cons:

• Reduces the amount of concurrency fees collected for transportation improvements.

3. Do not adopt the concurrency agreement included as Attachment #1.

Pros:

• Allows full amount of transportation concurrency fees to be collected for transportation improvements.

Cons:

• Does not provide incentives for short and long-term job creation.
• Does not provide incentives for a project that exceeds code requirements for energy efficiency.
• May discourage future applicants from submitting for reductions under the concurrency relief program.

4. Provide alternative direction to staff.

ATTACHMENTS/REFERENCES

1. Concurrency Agreement for the Mahan Village/New Horizon development.