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Minutes - City Council - 08/18/2015
CITY COUNCIL 18 AUGUST 2015 The South Burlington City Council held a regular meeting on Tuesday, 18 August 2015, at 6:30 p.m., in the Conference Room, South Burlington Police Station, 19 Gregory Drive. MEMBERS PRESENT: P. Nowak, Chair; H. Riehle, C. Shaw, M. Emery, T. Chittenden ALSO PRESENT: K. Dorn, City Manager; T. Hubbard, Deputy City Manager; T. Whipple, Police Chief and other members of the Police Department; J. Barlow, City Attorney; P. Conner, Director of Planning & Zoning; I. Blanchard, Project Manager; A. Lafferty, Attorney for the City; A. Bortz, K. Mackin, B. Servis, B. Nowak, S. Dooley, T. McKenzie, S. Dopp, L. Yankowski 1. Agenda Review: Additions, deletions or changes in order of agenda items: Agenda Item #8 was postponed to the next meeting. Ms. Nowak noted the recent passing of South Burlington’s first Fire Chief, Bud Monell, and the presence at this meeting of the Monell family. Ms. Nowak reviewed Chief Monell’s accomplishments as Fire Chief. Mr. Shaw commented that the city’s residence sleep well at night because of what Mr. Monell started. 2. Tour of Police Station – upper floor construction project: Chief Whipple conducted a tour of the upper floor of the building which is being renovated for two tenants and discussed the future plans for the building. 3. Comments & Questions from the public not related to the agenda: Ms. Servis addressed the Council on the topic of water conservation. She felt that because of the water billing system there is no incentive for residents to conserve water. She suggested eliminating the base charge and billing people for every gallon of water that is used. Ms. Nowak noted that part of the minimum charge goes for maintenance of hydrants, water mains, etc. She said she would pass along Ms. Servis’ comments to the Public Works Director. Ms. Nowak noted receipt of comments from a gentleman concerned with the traffic lights across from Trader Joe’s, northbound where people are making a left turn into Hannaford’s. He felt the lights “get stuck” and he has to wait several cycles before there is a turn light. A Police officer noted that if a car isn’t up to the line at the light, the light will not always recycle. 4. Announcements and City Manager’s Report: Mr. Dorn: Cited the people who made CityFest happen including: The Rotary, Maggie Leugers and the Recreation Team, Public Works Dept., Police and Fire Departments, City Clerk, Library people, Tom Hubbard and Ilona Blanchard. The city is starting enforcement on East Terrace for those in violation of the “no more than 4 unrelated people” in a single family rental house. A fine of up to $200 per day can be imposed for non-compliance. A flyer is being prepared with a letter to all property owners reminding them of the ordinance. Council members reported on meetings and events they had attended. 5. Consent Agenda: a. Sign Disbursement b. Approve Minutes for 3 August and 13 August 2015: Ms. Emery noted that in the 3 August Minutes, p. 6, she had also included City Hall near the top of the project list. Ms. Riehle moved to approve the Consent Agenda with the above addition. Mr. Shaw seconded. Motion passed unanimously. 6. Presentation on Police Department Operations: Chief Whipple highlighted work being done by the Department. He said CityFest was a great event with none of the expected traffic issues. He cited accurate signage as a very positive contributor. The Department’s #1 focus is on problems related to opiate addition, specifically trying to identify the pipelines for heroin, which frequently comes from out of state. Chief Whipple specifically cited the efforts of a new police officer in a “think on your feet” effort in traffic with a drug overdose victim at the wheel of a car. There are now 3 police officers in training at the Police Academy. All are doing well. When their academy training is completed, they will get additional training “on the job” with ride‐along supervision. There is still one vacancy for which the Department is actively recruiting. South Burlington is a leader in the state in the “human trafficking task force.” Issues include people being smuggled over the border, opiate addicted individuals forced into servitude to get drugs, etc. South Burlington is particularly vulnerable because of the large number of motels in the city and because of the number of officers who have learned how to investigate these cases. Chief Whipple noted that he and another officer attended a seminar last week on strategic planning for law enforcement agencies. Areas of particular interest were staffing, technology, policing, and professional development. The Department is working with a consultant on data and what it may indicate. When there are common problems, locations, and/or people, the hope is to use the data to reduce the problems. 7. Consider and Possibly Ratify Tentative Agreement on the South Burlington Police Officers Association Collective Bargaining Agreement: Following a brief discussion, Mr. Shaw moved that the Council meet in executive session to consider a labor relations agreement with employees where premature general public knowledge would place the City of South Burlington at a substantial disadvantage, the executive session to include the City Manager, Deputy City Manager, and City Attorney. Ms. Riehle seconded. Motion passed unanimously. Following the executive session, Ms. Riehle moved to ratify the tentative agreement with the South Burlington Police Officers Association Collective Bargaining Agreement as presented. Mr. Shaw seconded. Motion passed unanimously. 8. Consider and possibly approve City Manager employment contract: This item was postponed to the next meeting. 9. Consider and possibly approve amended settlement agreement among the parties in in re Highlands Development Company, LLC, and JAM Golf, LLC, Docket No. 194-10-03 Vtec (Vt. Super. Ct. Envtl. Div.); and JAM Golf Long Drive Subdivision Application Completeness, Docket No. 38-3-11 Vtec (Vt. Super. Ct. Envtl. Div.). Mr. Barlow said he felt it would be proper to go into Executive Session, if the Council so wishes, so that the Council can receive legal counsel. Mr. Chittenden moved that the Council meet in executive session to discuss the amended settlement agreement among the parties in the Highlands Development Company, LLC, and JAM Golf, LLC, Docket Nos. 194-10-03 and 38-3-11 Vtec, where the premature general public knowledge would put the City of South Burlington at a substantial disadvantage. Ms. Riehle seconded. Motion passed 4-1 with Mr. Shaw opposing. Following the executive session, members voted on the previously tabled motion to approve the amended settlement agreement as presented. The motion passed 3-1 with Mr. Shaw opposing and Mr. Chittenden abstaining. 10. Review and Potentially Adopt Changes to the Investment Policy Statement: Mr. Hubbard noted that SEI had introduced a new “core property” option to diversify the city’s portfolio. The current yield is 4.3%. Ms. Nowak said she supports the addition and the Pension Advisory Committee has approved it. SEI brought in their highest level real estate manager to go through this with the Committee. No fees will be assessed for this addition. Ms. Riehle moved to adopt the changes to the investment policy statement as presented. Mr. Shaw seconded. Motion passed unanimously. 11. Public Comment Period and Council Discussion Related to the Tax Increment Financing (TIF) Policy that will guide TIF investment in the South Burlington TIF District: Mr. McKenzie said the policy seems to go against the Form Based Code. He was concerned that design standards are not right up front, and that this policy introduces a lot of design standards that would hinder review. He felt design standards should be in the zoning document, not in the TIF document. Ms. Nowak noted that additional standards can mean additional cost to developers. She asked Mr. McKenzie how detrimental would those standards be to getting developers for City Center. Mr. McKenzie said one standard that jumped out at him was the parking standard of “no more than 2.5 spaces per 1000 sq. ft.” He noted that Trader Joe’s got 4.5 spaces per 1000. Mr. McKenzie acknowledged that the balance of spaces could go into a parking structure; however, the developer can’t know for certain that there will be a parking structure. He stressed that if the city can’t meet the requirements of a developer, the developer will go elsewhere. He added that as the language is written, a developer won’t know if there will be a parking structure until “the back end.” Mr. Chittenden said he had similar concerns and saw this as raising financial barriers. Ms. Emery said Form Based Code set the standard for City Center, but what is in the TIF is for developers who go beyond the standard to provide things that the citizens have said many times that they want to see in City Center. She felt the TIF standards can result in “special buildings” much like buildings when there is a competition for design. Mr. Dorn said the Form Based Code “threads the needle” between good and excellent design standards and does not hamper developers. This policy said if you meet the Form Based Code, you’ve met the base standard; however, if you’re willing to go above that, provide more of what the city wants, the city will invest in that. He stressed the need for a policy for how the city will invest those dollars. Mr. Dorn said he felt it is a benefit to being in at the beginning of the TIF. Mr. McKenzie said he gets the concept, but he is struggling to see how it works. He asked how would a developer of a 5-building project know there will be a parking structure. Mr. Dorn said there are 2 classifications of TIF funding: public infrastructure and direct investment. Ms. Nowak asked if there can be a “bullet point” list of issues for the Council to consider. She wanted all the information the Council can get so this will be collaboratively workable. Mr. McKenzie said the single most determining factor in City Center is going to be where to park cars. Mr. Dorn stressed that as long as a project meets the code, it will get funded. Mr. Conner then explained how staff arrived at the Policy. The Form Based Code is what the private sector can arrive at without much difficulty/assistance. To get more quality, more public participation is needed. Staff didn’t want a Form Based Code where the standards were so high that everyone needed public participation. Mr. McKenzie said he didn’t anticipate any development not being of high quality. He also explained a concern with “abutting buildings.” Ms. Emery said she felt the community vision is important. The closer you can get to assuring that the vision will get met, the better chance there is of getting a positive public vote. Ms. Nowak said she understood from the developers’ side the need for assurance that there will be a parking structure, and that need hasn’t fallen on deaf ears. Mr. Shaw said he understood the concern with hard numbers a developer can put a pencil to. He also understood the city’s perspective. He suggested the possibility of a list of items from which a developer could pick a certain number of “musts.” Ms. Dooley felt the policy as written could promote public/private partnership. She also felt that things that are above the standards will help all development. 12. Consider and possibly adopt recommendations on initial round of TIF District projects. Review ballot language: Mr. Dorn noted that the city received a legal opinion that both the vote to identify projects and the vote for bonding for projects should be one vote. Staff is not sure both of these can be done in November because of warning times. He hoped to have the answer to that by the first meeting in September. The City will need to understand the components of a Library (e.g., land costs, etc.), and the question is whether this can be accomplished in a month. Ms. Nowak asked if Mr. Dorn saw something happening before the March election. Mr. Dorn replied that there may be an opportunity relating to the purchase of property that may give the voters more clarity with regard to projects. Mr. Conner added that they are looking very carefully at the level of detail that will make the public comfortable and how to get that level of detail. Ms. Dopp stressed the need for public education as she felt the public has a very low understanding of this. 13. Council discussion regarding dedicating ½ cent of the annual 1 cent Open Space Fund allocation to improvements of existing public lands: Mr. Dorn and Mr. Conner noted that the Natural Resources Committee had discussed this and was very supportive of the plan. Ms. Yankowski was very supportive and cited specific needs at Red Rocks Park. Ms. Riehle asked why the ½ cent would be backed off to ¼ cent in 10 years. Mr. Hubbard said if the city took out a $1,500,000 loan, it could be paid off in 10 years at the ½ cent level ($150,000 a year). A public vote will be required to do this. 14. Council feedback and discussion about CityFest: Ms. Emery felt seating for the under-21 age group would be nice. Ms. Nowak suggested having Ms. Leugers come up with more events to be held in the beautiful park. Members cited the great sound system. They also applauded the use of music with the fireworks. The opening of the time capsule was also praised as was the advertising for the event. 15. Other Business: A. Items Held from Consent Agenda No items were held. As there was no further business to come before the Council, Mr. Shaw moved to adjourn. Ms. Riehle seconded. Motion passed 4-0. The meeting was adjourned at 9:30 p.m. Published by ClerkBase ©2019 by Clerkbase. No Claim to Original Government Works. SOUTH BURLINGTON CITY COUNCIL MEETING MINUTES 13 AUGUST 2015 1 The South Burlington City Council held a special meeting on Thursday, 13 August 2015, at 7:00 p.m., beginning at the Wheeler Homestead, 1100 Dorset Street. MEMBERS PRESENT: C. Shaw, T. Chittenden, M. Emery ALSO PRESENT: P. Conner, Director of Planning & Zoning; A. Lafferty; D. Marshall; S. Fead 1. City Council Site Visit of “JAM Settlement” properties – possible multiple locations Mr. Shaw opened the meeting and indicated that he would like to start by visiting the site of the land to be exchanged from the city. Members agreed. The site visit walked over to the southwest corner of the Wheeler Nature Park. Members reviewed the location of the TREEage nursery and inquires as to which rows had been and would be displaced. Members then walked to the corner of Dorset Street and Park Road, and east along Park Road. The approximately boundaries of the land exchange in this area was identified. Members walked along the recreation path in an easterly direction, identifying elements of the land swap. Members then decided to visit the area to be exchanged by JAM Golf / Highlands Development. The site visit continued into the trails of the Wheeler Nature Park to a point near the southeast corner of the park and the northeast corner of the JAM Gold / Highland Development site. The approximate location of the land exchange was identified. The site visit then returned to the Wheeler Homestead parking lot. 2. Adjourn Ms. Emery moved the meeting be adjourned. Mr. Chittenden seconded. Motion passed. All councilors thanked those in attendance for participating. As there was no further business to come before the Council, the meeting was adjourned at 4:02 p.m. ___________________________________ Clerk City of South Burlington South Burlington Retirement Income Plan INVESTMENT POLICY STATEMENT January 2014 September 2015 TABLE OF CONTENTS Introduction ............................................................................................................................................................ 1 Duties and Responsibilities .................................................................................................................................... 1 Pension Advisory Committee ............................................................................................................... 1 Investment Manager ............................................................................................................................. 2 Statement of Objectives .......................................................................................................................................... 2 ERISA Compliance .............................................................................................................................. 2 Primary Plan Objective ......................................................................................................................... 2 Plan Financial Objectives ..................................................................................................................... 2 Statement of Investment Policy .............................................................................................................................. 2 Asset Allocation Targets ....................................................................................................................... 2 Adherence to Policy Targets ................................................................................................................ 3 Investment Securities and Diversification ............................................................................................ 3 Proxy Statements .................................................................................................................................. 4 Execution of Security Trades ................................................................................................................ 4 Control Procedures ................................................................................................................................................. 4 Review of Liabilities ............................................................................................................................. 4 Review of Investment Objectives ......................................................................................................... 4 Review of Investment Manager and Investments ................................................................................. 4 Performance Expectations .................................................................................................................... 4 Rev. 11-10 INTRODUCTION This document establishes the Investment Policy Statement (“Investment Policy”) for the City of South Burlington Retirement Income Plan (the “Plan”). The City of South Burlington Pension Advisory Committee (“Committee”) is responsible for managing the investment process of the Plan in a prudent manner on behalf of the City Council with regard to preserving principal while providing reasonable returns. The City of South Burlington Pension Advisory Committee has arrived at this Investment Policy through careful study of the returns and risks associated with alternative investment strategies in relation to the current and projected liabilities of the Plan, after consulting with such outside Investment Manager (as defined below) as is deemed appropriate. This Investment Policy has been chosen as the most appropriate policy for achieving the financial objectives of the Plan which are described in the “Statement of Objectives” section of this document; however, the City of South Burlington Pension Advisory Committee shall be free to deviate from this Investment Policy when it concludes that it is prudent and in the interest of the Plan to do so and may amend the Investment Policy at any time, with approval from the City Council. The City of South Burlington Pension Advisory Committee has adopted a long-term investment horizon such that the chances and duration of investment losses are carefully weighed against the long term potential for appreciation of assets. In addition to the Investment Policy defined herein, the management of the Plan will be in compliance with all provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), the Investment Managers Act of 1940 and other applicable laws. DUTIES AND RESPONSIBILITIES The City of South Burlington Pension Advisory Committee is responsible for managing the investment process in a prudent manner with regard to preserving principal while providing reasonable returns. In carrying out these duties, the City of South Burlington has retained an Investment Manager, SEI Investments Management Corporation (the “Investment Manager”), to assist in managing the assets of the Plan. The Investment Manager’s role is to provide guidance to the City of South Burlington on matters pertaining to the investment of Plan assets including Investment Policy, investment selection, monitoring the Plan’s performance and compliance with the Investment Policy. All decisions pertaining to the Investment Policy and guidelines for the Investment Policy’s implementation will be made by the City of South Burlington Pension Advisory Committee, with approval from the City Council. The Investment Manager, in carrying out the Investment Policy defined in this document, has authority and responsibility to select appropriate investments in the specific asset classes mandated by this Investment Policy, in accordance with (and subject to) the terms of an terms of the investment management agreement dated July 2, 2013 executed between the Investment Manager and the Plan (the “Investment Management Agreement”). Duties and responsibilities are described in detail below. City of South Burlington Pension Advisory Committee The City of South Burlington will retain a qualified Investment Manager to assist in the development and implementation of the Investment Policy and guidelines. The City of South Burlington Pension Advisory Committee will establish the Investment Policy of the Plan, with approval from the City Council. This includes, but is not limited to, allocation between equity and fixed income assets, selection of acceptable asset classes and investment performance expectations. The committee will periodically review the Investment Policy. The City of South Burlington Pension Advisory Committee will regularly review the investment performance of the Plan including the performance of the Investment Manager to assure the Investment Policy is being followed and progress is being made toward achieving the objectives. Rev. 11-10 Investment Manager The Investment Manager retained by the City of South Burlington will assist the City of South Burlington Pension Advisory Committee in establishing the Investment Policy and guidelines contained in this Investment Policy. In accordance with the terms of the Investment Management Agreement, the Investment Manager will be responsible for managing the asset allocation, determining investment strategy and implementing security selection decisions through the investment sub-advisers for the mutual funds managed by the Investment Manager, within the Investment Policy and as otherwise provided by the City of South Burlington Pension Advisory Committee. The Investment Manager will monitor asset allocation across and among asset classes. The Investment Manager will monitor investment performance of the Plan. Performance reports will be provided to the City of South Burlington Pension Advisory Committee quarterly, and additionally, an annual presentation and review with the City Council at a regular public meeting. The Investment Manager will report in a timely manner any substantive developments that may affect the management of Plan assets. STATEMENT OF OBJECTIVES ERISA Compliance The assets of the Plan will be invested in accordance with all applicable laws in a manner consistent with fiduciary standards including ERISA (if applicable). Specifically: 1. The safeguards and diversity that a prudent investor would adhere to must be present in the investment program. 2. All transactions undertaken on behalf of the Plan must be in the best interest of plan participants and their beneficiaries. Primary Plan Objective The primary objective of the Plan is to provide a source of retirement income for its participants and beneficiaries. The financial objectives of the Plan have been established in conjunction with a comprehensive review of the current and projected financial requirements. Plan Financial Objectives The primary financial objective of the Plan is to improve the funded status of the Plan. A secondary financial objective is, where possible, to minimize pension expense volatility. The objective is based on a long-term investment horizon, so that interim fluctuations should be viewed with appropriate perspective. There can be no assurance that these objectives will be met. The City of South Burlington and the Pension Advisory Committee also realize and agree that historical performance is no guarantee of future performance. STATEMENT OF INVESTMENT POLICY Asset Allocation Targets It will be the policy of the Plan to invest assets with an allocation as shown below: Asset Class Target Allocation Permitted Variance Equity 60% +/- 5% Fixed Income 35% +/- 5% Alternatives 5% +/- 5% Within each asset class, assets will be invested in accordance with the Guidelines set out below. Rev. 11-10 In accordance with the terms of the Investment Management Agreement, Manager will retain discretion with respect to the SEI mutual funds utilized by Manager to implement the Strategy. Additionally, Investment Manager will retain discretion with respect to modifications required to the asset allocation identified above. In the event the Investment Manager exercises its discretion as noted in this paragraph, Investment Manager will develop and adopt a revised draft Investment Policy Statement on behalf of the Plan. Investment Manager shall notify the Pension Advisory Committee, and likewise, the City Council as soon as practicable after implementing any change to the asset allocation or the SEI Funds used to implement the asset allocation as soon as practicable. Adherence to Policy Targets The asset allocation established by this Investment Policy Statement represents a long-term perspective. As such, rapid unanticipated market shifts or changes in economic conditions may cause the asset mix to fall outside of the policy range. These divergences should be of a short-term nature. To ensure divergence from the target policy is within acceptable limits, rebalancing of assets may be necessary. Rebalancing procedures are authorized in accordance with the Investment Management Agreement and are implemented by the Investment Manager. Notwithstanding the foregoing, under certain circumstances, the Investment Manager may (i) make active investment decisions for the Plan in accordance with the terms of the target variance noted above, (ii) modify the target variance(s) applicable to the strategy, (iii) modify its standard rebalancing operating procedures, and/or (iv) suspend some or all of the rebalancing procedures affecting the strategy. Investment Manager shall only modify or suspend its rebalancing procedures as outlined in this paragraph if it has prudently determined that such suspension is in the best interest of the Plan, its participants and beneficiaries in its reasonable sole discretion. If the Investment Manager has suspended its rebalancing procedures applicable to the Plan, the Investment Manager shall seek to notify City of South Burlington as promptly as possible of such decision. Investment Securities, Strategies and Diversification As described in the Investment Management Agreement, the Investment Manager implements this Investment Policy through investments in mutual funds and other pooled asset portfolios. It is the responsibility of the Investment Manager to provide a prospectus for each investment and the responsibility of the committee and the City to read and understand the information contained in the prospectus. Mutual funds may utilize shorting strategies as outlined in the prospectus. Further, certain mutual funds may participate in securities lending as determined by the prospectus. Such investments are acceptable investments provided they conform to the diversification restrictions set forth by the Investment Company Act of 1940, as amended (the “1940 Act”) below. Additionally, the funds may invest in derivative instruments within a portion of their portfolios. Portfolios may purchase derivatives, generally using only a fraction of the assets that would be needed to purchase equity or fixed income securities directly. As a result the derivatives could be backed by a wide range of asset classes including but not limited to: U.S, and foreign equities, U.S. and foreign fixed income securities of different types and maturities, mortgage-backed or other asset-backed securities, securities rated below investment grade, non-U.S. equities, limited partnerships, currencies, commodities, and repurchase or reverse repurchase agreements. The investment goal of such a strategy would be to add diversifying alpha sources within that fund, while maintaining the beta exposure to the asset class. Investments will be diversified within asset classes with the intent to minimize the risk of large losses to the Plan. The portfolio is comprised of mutual funds that are managed in accordance with the diversification and industry concentration restrictions set forth in the Investment Company Act of 1940, as amended (the “1940 Act”). Pursuant to the provisions of the 1940 Act, a mutual fund may not, with respect to 75% of its assets, (i) purchase securities of any issuer (except securities issued or guaranteed by the United States Government, its agencies or instrumentalities) if, as a result, more than 5% of its total assets would be invested in the securities of such issuer; or (ii) acquire more than 10% of the outstanding voting securities of any one issuer. This restriction does not apply to the International Fixed Income Fund or the Emerging Markets Debt Fund. Rev. 11-10 No mutual fund may purchase any securities which would cause more than 25% of its total assets to be invested in the securities of one or more issuers conducting their principal business activities in the same industry, provided that this limitation does not apply to investments in securities issued or guaranteed by the United States Government, its agencies or instrumentalities. Volatility Consistent with the desire for adequate diversification, the investment policy is based on the assumption that the volatility of the combined equity investment will be similar to that of the market opportunity available to institutional investors with similar return objectives. The volatility of fixed income portfolios may be greater than the market during periods when the portfolio duration exceeds that of the market. Proxy Statements Proxies, tender offers and the like will be voted in accordance with the terms of the Investment Management Agreement. Execution of Security Trades The Plan expects the purchase and sale of its securities to be made in a manner designed to receive the combination of best price and execution. The City of South Burlington Pension Advisory Committee recognizes that mutual fund shares are purchased and sold at the net asset value next determined after receipt of the order and that accordingly, best price and execution may not be applicable to such transactions. CONTROL PROCEDURES Review of Liabilities All major liability assumptions regarding number of participants, compensation, benefit levels and actuarial assumptions will be subject to an annual review by the City of South Burlington and its Pension Advisory Committee. This review will focus on an analysis of major differences between the Plan’s assumptions and actual experience. Review of Investment Objectives Investment performance will be reviewed annually to determine the continued feasibility of achieving the investment objectives and the appropriateness of the Investment Policy for achieving these objectives. In addition, the validity of the stated objective will be reviewed annually. It is not expected that the Investment Policy will change frequently. In particular, short-term changes in the financial markets should not require an adjustment to the Investment Policy. Review of Investment Manager and Investments The Investment Manager will report on a quarterly basis to review the total Plan investment performance, and annually before the City Council at a regularly scheduled public meeting. The Investment Manager will be responsible for keeping the City of South Burlington and the Pension Advisory Committee advised of any material change in its personnel, the investment strategy, or other pertinent information potentially affecting performance of all investments. Performance reviews will focus on: Comparison of investment results to appropriate benchmarks, as well as market index returns in both equity and debt markets. Investment adherence to this Investment Policy and guidelines. Material changes in the investment organizations, such as in investment philosophy and personnel, etc. Rev. 11-10 Performance Expectations The most important performance expectation is the achievement of long-term investment results that are consistent with the Plan’s Investment Policy. Implementation of the policy will be directed toward achieving this return and not toward maximizing return without regard to risk. The City of South Burlington and its Pension Advisory Committee recognize that this real return objective may not be meaningful during some time periods. In order to ensure that investment opportunities available over a specific time period are fairly evaluated, comparative performance statistics (including benchmark indices) will be used to evaluate investment results. ADOPTION OF INVESTMENT POLICY STATEMENT The City of South Burlington Pension Advisory Committee and City Council has reviewed, approved and adopted this Investment Policy Statement, prepared with the assistance of SEI Investments Management Corporation. ____________________________________________ _______________________ Signature (Chair, South Burlington City Council) Date 575 Dorset Street South Burlington, VT 05403 tel 802.846.4107 fax 802.846.4101 www.sburl.com TO: Kevin Dorn, City Manager FROM: Ilona Blanchard, Project Director SUBJECT: Public Comment on the City Center TIF Investment Policy Followed by Council Discussion DATE: August 14, 2015 BACKGROUND: Since March, the City Council has been discussing a framework for a policy to establish parameters, processes, and guidance City use of TIF District Financing to directly benefit private development. The policy is distinct from a regulation in that a regulation sets the lowest common denominator, whereas the policy would establish a threshold that rewards excellence while protecting the public interest. The Goal and Criteria contained in this draft policy have been reviewed and discussed by the Planning Commission, with changes made in response. The Council has indicated that they would appreciate public comments on the policy draft prior to approval and has scheduled a public comment period. In the interim, language related to Affordable Housing has been updated. Policy Background How will the City ensure that public monies spent on private projects are not subsidizing projects that do not meet the goals and extensive planning and visioning work of the Background, Continued, Page 2 public? How will the City ensure that the tax payers do not end up paying for improvements that result in no appreciable tax revenues? How will the City ensure that we are not moving tenants from one part of the City to another, raising tax revenues in one place while lowering them in another? How will the increment be set aside for community infrastructure that is critical to the downtown character but not directly within a private development? Will the process be transparent and developers be giving an equal opportunity to qualify for funding? These are all important questions. Fortunately, the City is not alone in administering a TIF District. 49 States enable TIF Districts. Many cities have multiple TIF Districts throughout their communities and use it as a principle form of financing public infrastructure to obtain community goals. Many these communities also have established TIF district policies, applications for funding, and project review processes. Independent policy analysis has been conducted to study these policies and their effects on the community and broader tax base. While every state’s enabling statute, regulatory framework, development pattern and program is different, there are some commonalities across TIF Districts. These include the following: Funded projects are those that align with and achieve the community vision or goals. Projects meet a ‘but for’ statement. They are projects that would not be possible without the public support because they are above and beyond what the market supports. The TIF only provides “gap” funding. Funded applicants are those that are able and capable of holding up their end of the deal and that provide a security that they will build their project as planned and on schedule. Projects and performance are monitored. Staff has reviewed the many policy documents related to City Background, Continued, Page 3 Center visioning which have been either adopted or are in draft form. These include the TIF District Plan, the Comprehensive Plan (draft and adopted), and the adopted and proposed Land Use Regulations. In South Burlington, under City’s development regulations many developers build their own roads which become public or private, their own stormwater treatment, undertake their own wetland mitigation, and build both private and public parks. Over the next seven years, the City will have the opportunity to invest 23.2 million dollars in private sector projects to provide these items that the City would not provide elsewhere in South Burlington. Based on the framework discussed last March, the visioning, planning and regulatory public outreach and policy work the City has engaged in over the past few years, and examinations of the local built environment as well as best practices and other policies, a TIF District Public‐Private Partnership Policy has been drafted. The policy has these main elements which follows the discussion points covered in the framework: Statement of purpose Definitions Base eligibility requirements Amount of community investment Developer capacity criteria Project surety requirements Options for direct benefit community investment Options for destination community investment Review process Development agreement contents Annual reporting requirements Exclusions Effective date and sunset date Background, Continued, Page 4 ATTACHMENTS: City Center Public Private Partnership Policy RECOMMENDATION: Listen to the public comments and discuss. ADDITIONAL CONSIDERATION: TIF District Financing funds would be raised through public financing that is “double barreled”; i.e. bond that are backed by future TIF District tax increment revenues, but also back by the full faith and credit of the City; otherwise known as general obligation bonds against the property tax base. The direct project investment opportunity (23.2 million dollars) represents approximately 40% of the potential increment expenditures. The City has also identified 31.7 million dollars of potential increment expenditures as fulfilling downtown infrastructure needs to create the community envisioned downtown for which the City has secured the TIF District. Many of these projects also provide direct benefit to private projects; e.g., Market Street. Some provide network capacity for new development but may not be part of a public private partnership, such as improvements to Midas Drive, recreational path improvements, water system upgrades; others create value for adjacent developments such as high quality parks and public facilities. These combined represent the remaining approximately 60% of potential increment expenditures. City Center Public‐Private Partnership Policy draft 8/3/2015 Page 1 of 11 City Center Public‐Private Partnership 1 Policy draft 7/31/2015 2 Purpose: The City’s Tax Increment Financing District was approved by the City of South Burlington and 3 the State of Vermont to support development that would not otherwise occur “but for” public 4 investment. The intention is to support a new urban land development market that results in a South 5 Burlington downtown. The TIF District Plan includes public projects that directly benefit private 6 development in order to remove financial barriers to the development of a downtown for South 7 Burlington. This policy outlines the criteria by which projects will be considered eligible for City 8 partnerships to directly benefit from South Burlington TIF District financing. 9 Development proposals supported by public investment are expected to meet not just the development 10 standards as outlined by the City’s adopted land development regulations which apply to all properties 11 but also to demonstrate innovative design, a commitment to sustainable transportation modes and 12 efficient use of land. A successful proposal requires high quality in building materials, architecture and 13 site design to achieve visual interest and human scale. Successful projects will place a premium on 14 developing land sustainably and efficiently and enhancing the value and function of adjacent properties. 15 Public investment will foster development that achieves the following goal: 16 A downtown for South Burlington that is diverse, dynamic and 17 people‐oriented; economically vibrant supporting a mix of shopping, 18 dining, housing and workspaces; featuring a safe transportation 19 system that encourages pedestrian, bicycle and transit options while 20 accommodating the automobile; with public open space, art and civic 21 facilities that establish pride and community identity and a built 22 environment that reinforces a culture of conservation and efficiency. 23 Meeting policy criteria does not guarantee the award of Community Investment in a project. The 24 provision of financial assistance or investment is the sole discretion of the City, and meeting the policy 25 does not guarantee the award of assistance. Furthermore, the approval or denial of one project is not 26 intended to set a precedent for approval or denial of another project. The City’s decision to participate 27 in any agreement should be viewed as a contribution that will aide in a sense of community and add 28 long‐term value to the community. 29 Final approval of investment in a development project will be by the City Council. 30 Developers are encouraged to meet with the City early in their planning process. 31 City Center Public‐Private Partnership Policy draft 8/3/2015 Page 2 of 11 I. Definitions 32 Community Investment: City pledged funding to finance and construct infrastructure that directly 33 benefit a development project. The maximum potential Community Investment value is the Base Value 34 plus Bonus Value plus 10% Value plus visibility value as calculated in worksheet X but shall not exceed 35 either the cost of Direct Benefit Infrastructure (including debt costs) or 90% of the total Project 36 Generated Increment, whichever is less. Community investment may only be used for the infrastructure 37 as described in this policy (see Section VI). 38 Destination Investment. Several projects have been approved in the TIF District that function as 39 destination infrastructure or improvements and directly aide in the establishment of City Center as the 40 community center for South Burlington. The City will fund up to 100% of these improvements in order 41 to establish a downtown. Increment invested in the listed destination projects not counted in the 42 Community Investment in an eligible Development Project. 43 Development Project: A lot or set of lots on which proposed improvements meet the minimum criteria 44 and for which a developer has applied for the use of Community Investment to build TIF District pre‐45 approved infrastructure in their project. A development project is all proposed development on this lot 46 or subdivision. 47 Equity Investment: Cash or un‐leveraged value in land or prepaid costs attributable to the Development 48 Project. Donated developer or construction management fees shall not be constituted as equity 49 investment. 50 Increment: Estimated or actual tax revenue generated in accordance with Vermont Statues and placed 51 in a segregated account for the purpose of financing Tax Increment Financing District improvements. 52 Estimates will be generated from the City form included in the application. 53 Project Generated Increment: The calculation of increment amount generated by a project will per a 54 worksheet in the application using values that are updated annually by the City. Only increment 55 generated from the area of the defined development project that meets the development project 56 criteria 100% is counted as project generated increment. 57 Site Area: The total area of the Development Project lot or subdivision excluding the area of protected 58 wetlands and wetland buffers. 59 Tax Increment Financing District: The area approved for Tax Increment Financing by the Vermont 60 Economic Progress Council. This area is not contiguous with City Center. 61 II. Eligible Development Projects 62 1. Development Project that generate Increment. 63 2. Development Projects which the market does not support and that meet the goals of the 64 Community. This criteria is met if 100% of the development project meets 100% of the 65 City Center Public‐Private Partnership Policy draft 8/3/2015 Page 3 of 11 following Community Goal Development Project Eligibility Criteria Minimums. The City Manager 66 may request a due diligence review to ensure this criteria is met. 67 a. Development project belongs to a Transportation Demand Management Organization. 68 (Community Goal: Sustainable (multi‐modal) and sociable transportation) 69 b. Durable hard surface paths connect across parcel to sidewalks or other paths or transit 70 facilities on other parts of the development project, adjacent properties, and public 71 rights‐of‐way. (Community Goal: Sustainable (multi‐modal) and sociable transportation) 72 c. Covered and secure bicycle storage is provided. (Community Goal: Sustainable (multi‐73 modal) and sociable transportation) 74 d. Onsite non‐residential unstructured surface parking does not exceed maximums in 75 Table 1 (parking above maximums may be structured parking and/or an agency 76 managed parking shared or leased facility or on‐street). (Community Goal: Sustainable 77 (multi‐modal) and sociable transportation) 78 Table 1 79 Use Maximum Surface Parking Spaces Retail 2.5 spaces per 1,000 square feet Office/Mixed Use Commercial 2.5 spaces per 1,000 square feet Restaurant, stand alone 3.0 spaces per 1,000 square feet Hotel 0.7 spaces per room Places of Assembly 0.1 spaces per maximum permitted occupancy 80 e. Residential parking is sold or leased separately from multifamily units. (Community 81 Goal: Sustainable (multi‐modal) and sociable transportation) 82 f. All parking for commercial units is shared and unreserved. (Community Goal: 83 Sustainable (multi‐modal) and sociable transportation) 84 g. Where requested by public transit providers covered transit accommodations with 85 seating are provided in right‐of‐way or onsite in accordance with service provider’s 86 standards for enroute transit stops. (Community Goal: Sustainable (multi‐modal) and 87 sociable transportation) 88 h. Buildings are at least three stories in height in the T‐4 Form Based Code District. 89 (Community Goal: high quality human‐scale, walkable environment) 90 i. Buildings are at least five stories in height in the T‐5 Form Based Code District. 91 (Community Goal: high quality human‐scale, walkable environment) 92 j. Buildings edge Primary Streets, abutting each other with no openings between buildings 93 unless providing for an alley or pathway, in which case the opening is no more than 30 94 feet in width. Consider zero lot lines on at least one side of a building TBD. (Community 95 Goal: high quality human‐scale, walkable environment) 96 k. Building facades on primary streets are textured and establish interest on public streets, 97 pathways and open space for pedestrians and other users. This is to be achieved 98 City Center Public‐Private Partnership Policy draft 8/3/2015 Page 4 of 11 through design quality but is not to be interpreted as to require or limit design to a 99 specific style. Buildings have at a minimum: 100 i. A hierarchy of materials and surface textures distinguish the ground floor from 101 upper floors and the topmost level with the most detail on the ground floor on 102 public streets, pathways and open space and complementary detail on the top. 103 (Community Goal: high quality human‐scale, walkable environment) 104 ii. High quality entrances with legible addresses and appropriate lighting, 105 articulated with frames and transoms and the use as appropriate of a 106 combination of side lights, awnings, indented bays and other embellishments. 107 (Community Goal: high quality human‐scale, walkable environment). 108 iii. Window frames highlighted by changes in materials, color, texture, depth and 109 other embellishments. (Community Goal: high quality human‐scale, walkable 110 environment). 111 iv. Materials that are not “faux”. 112 l. Lighting is consistent across all pathways. (Community Goal: high quality human‐scale, 113 walkable environment). 114 m. 45% of dwelling units have an outdoor porch, patio, balcony or terrace of at least 6 feet 115 in depth. (Community Goal: high quality human‐scale, walkable environment) 116 n. The ratio of developed Floor Area to development project Site Area is at least 1.5. 117 (Community Goal: resource efficient) 118 o. Project is Energy Star Certified. Properties or portions of properties are exempt from 119 this minimum criteria if the use is not included in categories that are certified by Energy 120 Star (i.e. Energy Star will only certify a retail space of 5,000 square feet or more; 121 whereas retail spaces smaller than 5,000 square feet may also be efficient but do not fit 122 into a category certifiable by Energy Star). (Community Goal: resource efficient) 123 III. TIF Increment Community Investment in Projects 124 1. Community Investment Limit. In no case may the overall Community Investment value exceed 125 the cost of providing the Direct Benefit Infrastructure Community Investment (see options in 126 section VI) or 90% of the total Project Generated Increment, whichever is less. 127 2. Base Community Investment. Project Agreements for which both parties have signed in the 128 calendar year as noted in Chart 1 shall be eligible for the corresponding base percent of 129 estimated Project Generated Increment. This percentage is the base component of total 130 Community Investment for which Development Projects are eligible: 131 132 Chart 1: Base percentage of total estimated project generated increment eligible to become Community 133 Investment 134 Year 2015 2016 2017 2018 2019 2020 2021 2022 Percent 40% 40% 35% 25% 15% 10% 5% 0% 135 City Center Public‐Private Partnership Policy draft 8/3/2015 Page 5 of 11 3. Bonus Community Investment. Development projects that in addition to the base eligible 136 criteria, meet any of the Bonus Criteria may offset these additional project costs to the 137 developer by increasing the amount of total Community Investment in the Development Project 138 by an additional dollar for dollar of the cost to provide the Bonus item. For the first Bonus, the 139 additional Community Investment may not to exceed 15% of the total project generated 140 increment, for the second bonus 10%, and for the third bonus 5%. 141 a. Project includes public structured parking signed for and accessible to the public 142 (minimum of 20 spaces) with an entrance within 300 feet of 10 businesses. (community 143 goal: Sustainable (multi‐modal) and sociable transportation) 144 b. Showers and changing facilities for bicycle commuters are provided. (community goal: 145 Sustainable (multi‐modal) and sociable transportation) 146 c. Publically reviewed and accepted art is included in the project above and beyond art 147 required in Land Development Regulations. (Community Goal: high quality human‐scale, 148 walkable environment) 149 d. Walkway, plaza, and open space paving materials are not “faux”, and are of a higher 150 quality than concrete, such as stone or clay brick. (Community Goal: high quality human‐151 scale, walkable environment) 152 e. Project is LEED Platinum Certified. (Community goal: resource efficiency) 153 4. 10% Increase Community Investment Opportunity. Projects meeting at least one of the 10% 154 Increase Opportunity criteria may increase the Community investment by 10% of the project 155 generated increment. 156 a. The ratio of developed Floor Area to development project site area is at least 2. 157 b. At least 25,000 square feet, or one quarter of the development, whichever is larger, of 158 the development is Class A office. 159 c. 10% of retail floor area is set aside permanently for occupation by businesses registered 160 only in Vermont with no affiliation with an out of state headquarters or corporate office 161 and does not include a local business owner of a franchise or national chain. 162 d. The Affordable Housing that is provided in the project is 1) 400% above that required by 163 the Land Development Regulations, 2) is permanently affordable, 3) is managed and 4) 164 provides social support services and/or is affordable housing that is rented or sold to 165 households having an income less than 60% of area median household income. 166 e. Building(s) is (are) verified by Efficiency Vermont as Net Zero. (Community goal: 167 resource efficiency) 168 f. Existing businesses onsite are accommodated in the new Development Project. 169 (Community goal: resource efficiency) 170 5. Visibility Community Investment. Development projects meeting the following criteria are 171 eligible for an extra 10% of the project generated increment to be used as Community 172 Investment: 173 a. At least 10% of the total linear footage of building facade (measured horizontally 174 around the building) is on a primary street corner. Facades abutting structured parking 175 City Center Public‐Private Partnership Policy draft 8/3/2015 Page 6 of 11 are not included in the total measurement. (Community Goal: high quality human‐scale, 176 walkable environment) 177 b. Existing vehicle traffic volumes are at least 12,000 ADT on one facade of the project. 178 (Community Goal: vibrant downtown) 179 IV. Developer Capacity Criteria 180 The City will only partner with developers that have the capacity to implement the Development 181 Project. 182 1. Individuals requesting TIF assistance in the form of a Community Investment must demonstrate, 183 to the satisfaction of the City, Equity Investment in an amount not less than ten percent (10%) of 184 the project budget and financing for the remainder (or TIF assistance shall not exceed the 185 amount of equity provide by the Developer. . 10% is the most common) 186 2. Primary lender or equity investor has provided a letter of interest and acknowledgement of the 187 Development Surety (see section V). 188 3. Developer has site control. 189 4. Developer had agreed to provide full Project Development Surety (see section V). 190 5. For Development Projects that involve multiple phases of private capital investment that 191 request an up‐front Community Investment benefiting all phases of the Development Project, 192 the amount of private Equity Investment for a phase of development must be at least twice the 193 portion of Community Investment that directly benefits those phases of the Development 194 Project. (Or a guarantee will be provided for the public revenue relative to each phase’s portion 195 of the overall project) 196 6. Each Development Project eligible for a Community Investment must demonstrate the 197 probability of economic success. The developer must be able to demonstrate to the City’s 198 satisfaction an ability to construct operate, and maintain the proposed Development Project 199 based on past experience, general reputation, and credit history. The developers shall initiate 200 this effort by submitting to the City: 201 a. preliminary sales, rental, and other projections and/or pro forma analysis concerning 202 the Development Project. Existing sales or transfer sales from existing South Burlington 203 businesses must be accounted for any Development Project projection. 204 b. any market and financial feasibility studies, appraisals 205 c. all information provided to private lenders for the Development Project 206 d. any other information or data which the City or its financial consultants may require in 207 order to ensure success of the Development Project. 208 City Center Public‐Private Partnership Policy draft 8/3/2015 Page 7 of 11 V. Project Development Surety 209 Project Development Surety shall be provided in one or more of the following forms and shall ensure 210 that should the Development Project never or only partially be built, any debt incurred to build the 211 Community Investment is repaid in full in the absence of Project Generated Increment: 212 1. Full agreement to have a special assessment placed on the property for the construction of the 213 public infrastructure which would be removed once the project is built and generating taxable 214 revenue. 215 2. A bond in the amount of the Community Investment pledged to be released once the 216 Development Project is completed and generating taxable revenue. 217 3. Letter of credit, cash escrow, or other personal guarantee if financially advisable. 218 VI. Direct Benefit Infrastructure Community Investment Options 219 These projects are eligible for Community Investment as a Direct Benefit. These projects would 220 otherwise be provided by the private developer (are private responsibilities). As they are in the TIF 221 District and contained in the TIF District Financing Plan, if approved by the Council, the City may 222 undertake these improvements as Community Investments in order to offset costs incurred to create 223 Development Projects that meet the Community Goals. The public funding source for these Community 224 Investments will be Project Generated Increment financed debt. 225 1. Garden Street 226 2. Williston Road Streetscape (50%) 227 3. Shared, signed and accessible public structured parking 228 4. Combined stormwater treatment practice 229 5. Wetland mitigation or improvements to existing wetlands 230 6. Park infrastructure to connect a development to Dumont Park as part of an open space 231 requirement 232 7. Other improvements not listed above. Other improvements may be considered on a case‐by‐233 case basis; for such improvements a year should be added to any schedule to ensure adequate 234 time to obtain approval from the City Council, the State, and the voting public (not guaranteed). 235 The Applicant shall bear all costs of obtaining approval. 236 VII. Destination Investment 237 In special, limited cases, the City may agree to invest additional increment and public funds into 238 Destination Improvements that establish City Center as a downtown. These limited cases include the 239 following improvements: 240 1. Public facilities that can serve as anchor institutions, such as a community center or civic center, 241 library, recreation center and/or City Hall. 242 2. Dumont – City Center Park Expansion 243 City Center Public‐Private Partnership Policy draft 8/3/2015 Page 8 of 11 3. Central Urban Park 244 4. Streets surrounding a Central Urban Park which may be closed for park functions and events. 245 5. Bicycle/Pedestrian bridge over I‐89 246 VIII. Review Process 247 This process may include public outreach, a public vote and other public involvement and notification. 248 1. Pre‐Application Meeting with City Staff. Potential applicants are welcome to meet while still in 249 the conception stage and are required to contact the City Manager’s office to set up a meeting 250 with City staff prior to submitting an application. 251 2. Application. Applicants will submit a full application. The information in this application is 252 subject to the public records request. Certain information may be able to be held confidential in 253 accordance with V.S.A. XXXX and if this is so, these parts of the application must be clearly 254 marked as such. 255 3. Preliminary Review. City Staff will review the application. Staff may consult with the applicant 256 to gain additional information during this process. Applications will receive the following 257 recommendations to the City Manager: 258 a. Incomplete; no further action recommended. 259 b. Does not appear to meet minimum eligibility criteria for receiving increment. 260 c. Meets criteria for receiving increment requested (as is, or with conditions). 261 d. Additional material or review would be required to determine if the project merits 262 increment. 263 4. Due Diligence Review. 264 a. Concurrent Development Project Partner Policy Compliance Reviews will be as follows: 265 i. Design Review Committee will review the Development Project and make a 266 recommendation regarding compliance with all portions of Section II related to 267 a high quality/human scale development. 268 ii. A Financial Analysis Committee appointed by the City Manager will review the 269 Development Project and make a recommendation regarding compliance with 270 Developer Capacity requirements (Section IV), any Community Investment that 271 directly correlates with Development Project costs (e.g. Bonus Criteria sec. 272 III. 3.), and/or Community Investment proposed as a direct payment to the 273 applicant for TIF infrastructure that the applicant is constructing. 274 iii. Public Art Selection Committee will review and make a recommendation on any 275 proposed Public Art above and beyond that required by the Land Development 276 Regulations. 277 iv. Staff and/or a Consultant will review the remainder of the application and make 278 a recommendation regarding compliance with the Policy. Review costs such as 279 outside consultant services will be covered by the applicant in consultation with 280 the applicant. A fee may be set by the Council for application review. 281 City Center Public‐Private Partnership Policy draft 8/3/2015 Page 9 of 11 5. Recommendation. The City Manager will generate a recommendation incorporating all relevant 282 recommendations which will be passed to the City Council with any terms or conditions, the 283 staff estimate of Project Generated Increment and Community Investment cost and any other 284 considerations. 285 6. Approval of Terms. The Council will review the project and recommend whether or not to 286 proceed to a negotiation for a development agreement based on the recommended term sheet. 287 7. Contract. Negotiation of an agreement and execution by the City Manager if so authorized by 288 the City Council. 289 IX. Development Agreement. 290 The Development Agreement will include 291 1. A site plan and elevation drawings or renderings of the project, 292 2. A funding sources and uses table that identifies the various sources of public and private project 293 funds and how they will be used. 294 3. The Development Agreement will include a schedule for the Development Project construction 295 and completion with clearly identifiable milestones. 296 4. Among all other provisions, the Development Agreement will set forth method and manner for 297 disbursement of funds by the respective parties to pay for eligible project costs as well as the 298 responsibilities, milestones, and remedies of the respective parties in project completion. 299 5. It is the responsibility of the applicant to ensure that every element included in the 300 Development Project is approvable under City and State/Federal Land Use/Environmental 301 applicable regulations and the draft South Burlington land use regulations as of the date of 302 submittal. Remedies shall also provide for an event in which the applicant violates other 303 contractual arrangements and land use approvals. 304 6. The assignment of Development Agreement rights to any third party assignee will require prior 305 written consent of the City, which may be granted or withheld at the sole discretion of the City. 306 7. Agreements may include financing of Community Investment that may be subject to obtaining 307 voter approval prior to provision of the requested infrastructure. 308 X. Annual Reporting 309 Developers shall provide an annual report to the City no later than 30 days after the end of the City’s 310 Fiscal Year (June 30). The annual report shall provide: 311 1. An account of all sources and uses of funds to pay private costs of the project. The City reserves 312 the right to audit the account at its discretion and expense. 313 2. Detail on the developer’s progress towards completing all responsibilities and milestones of the 314 project completion identified in the Development Agreement. 315 City Center Public‐Private Partnership Policy draft 8/3/2015 Page 10 of 11 3. An accounting of all Vermont firms that have received funds and the amount of funds they have 316 received in the development or construction of the project as required by the State. 317 4. An accounting of businesses and types of businesses that have moved into the project, number 318 of employees and how many jobs are new versus moved from other locations and if they have 319 moved from other jurisdictions, which ones. 320 5. Any other information as required in the development agreement. 321 XI. EXCLUSIONS 322 The following, if included will cause a development proposal to be ineligible for Community Investment 323 or fall out of compliance with a Development Agreement. 324 1. The Development Project places extraordinary, unmet demands on City infrastructure or 325 services. 326 2. Community Investment will not be used in projects when the developer’s credentials, in the sole 327 judgment of the City, are inadequate due to past track record in relation to: completion of 328 projects, and or financial stability and are in good standing and responsive to municipal and 329 state laws, or other problems or issues considered relevant by the City. 330 3. The Development Project construction has not met scheduled milestones established in the 331 Development Agreement, and where the City has not agreed to extensions of the schedule. 332 4. Projects that do not receive project land use approvals. To be eligible for TIF financing a project 333 must receive project land use approvals. Projects that do not obtain land use approvals shall 334 release the City from any obligations but shall still cause the developer to be responsible for any 335 investments incurred by the public per the public investment development agreement. 336 5. TIF will not be used in projects that would give a significant, competitive advantage over similar 337 projects due to the use of tax increment subsidies. The City Council may require additional 338 market studies, remedies within the contract or “look‐back” provisions or remedies to ensure 339 that the following are met: 340 a. The intent is not to provide below‐market sales prices or rent subsidies to assisted 341 projects, except as applied to assist affordable housing with wrap‐around services or 342 similar community goals. 343 b. TIF will not be used to increase land sales prices. 344 c. TIF will not be used to increase profit above what the South Burlington market 345 reasonably is expected to provide or otherwise create uneven markets. 346 d. Additional considerations may be given as to whether existing local options tax revenue 347 is substantially impacted by relocation of existing retail development into a TIF project 348 whereby local sales are simply moving from one location within the City to another. Any 349 market analysis shall include: 350 i. the population areas that will be drawn from, and 351 ii. South Burlington Businesses which would be competed with by businesses of a 352 similar type to be locating in the project. 353 City Center Public‐Private Partnership Policy draft 8/3/2015 Page 11 of 11 iii. whether a substantial part of its total products and/or services are either 354 exported from the South Burlington City limits or they would add jobs and 355 replace purchases now being made by area residents in areas outside of the 356 City. 357 XII. EFFECTIVE DATE 358 This policy shall take effect upon adoption. 359 XIII. SUNSET DATE 360 This policy shall automatically expire April 1, 2022, unless extended by Council. 361 South Burlington Natural Resources Committee 575 Dorset Street South Burlington, VT 05403 (802) 846-4106 www.sburl.com Wednesday, August 5, 2015 6:00pm South Burlington Municipal Offices, 575 Dorset Street MEETING MINUTES for Regular Monthly Meeting Present: Betty Milizia (NRC Chair), Larry Michaels (NRC Vice Chair), Jeff Dixon (Member), Melissa Cuke (member), Paul Conner (Staff), The meeting was called to order at 6:03pm. 1. Additions, deletions or changes in the order of agenda items. No changes. 2. Comments and questions from the public not related to the agenda. None. 3. Introductions and welcome to new member Melissa Cuke. Ms. Milizia welcomed Ms. Cuke as the newest member of the NRC. Mr. Michaels asked if she would share a little of her background. She said that she had a background in ecology and has done work in a variety of fields – camera trapping in the tropics, science-based outreach, NOAA surveys of Lake Champlain, and was excited to be joining the Committee. All other members present gave a short introduction of their backgrounds and interests as well. 4. Approval of July meeting minutes. Mr. Michaels moved to approve the draft minutes of 1 July 2015 and Mr. Dixon seconded. The motion passed unanimously. 5. Discussion and provide feedback to City Council on concept to use a larger portion of the Open Space Fund ($0.01 tax rate) for natural area and open space maintenance and enhancement. Mr. Conner provided a brief background. He said that the City Council has, in the past year, received three significant reports related to the City’s natural and open space areas: the Red Rocks Park Management Plan, the Underwood Property Vision Framework, and the Wheeler Nature Park Management Plan. Each of these specifies maintenance and improvement projects to be undertaken. In this light, The City Council asked staff to provide a summary of project categories. The memo provided to Council was included in the NRC’s packet for this meeting. Following their initial discussion, the City Council is seeking input on the possibility of dedicating ½ cent of the $0.01 Open Space Fund towards these types of projects over the next 10 years. Mr. Conner said that the fund brings in approximately $280,000 per year in total. Mr. Michaels asked about the status of the fund at present and of the Underwood property purchase. Mr. Conner said that the Underwood property was purchased in February 2013. An initial payment was made at that time, followed by three subsequent payments in August of 2013, 2014, and this month (upcoming) of $220,000 each. The City will have no more payments once this one is made. The fund will have a balance of ~$250,000 in it as of the end of this fiscal year. Mr. Michaels said he supported the idea of a dedicated ½ cent for the types of projects outlined. He suggested that perhaps after 10 years it should automatically drop to ¼ cent. Mr. Dixon said that he could not think of a better use for these funds. Ms. Milizia said she agreed and asked whether any of these funds would or could be for staffing. There is a need for continuity, she said. Mr. Michaels moved that the Committee approve using ½ Cent of the Open Space Fund for Open Space and Natural Areas maintenance and enhancement. Ms. Cuke seconded. The motion was approved unanimously. 6. Updates and Staff announcements a. Wheeler Management Plan and VYCC Work. Ms. Milizia said that the work done up at the Wheeler Nature Park by the VYCC crew over the last three weeks had been excellent. She said that she could not say enough about the work of the Recreation Department’s intern, Emmitt, in guiding this work. She explained that the City was able to use the crew, for just a few hundred dollars’ worth of materials, because another project of the VYCC with the State had been postponed. b. Updates on CityFest. Ms. Milizia gave a brief update on the planned tours of the Wheeler Nature Park during CityFest. 7. Adjourn. Meeting adjourned at 7:08pm. Respectfully submitted, Paul Conner, Director of Planning & Zoning