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HomeMy Public PortalAbout2011 - Revitalization of Old Town 2nd Ad Hoc CommitteeREPORT OF THE SECOND AD HOC COMMITTEE ON REVITALIZATION OF OLD TOWN SUBMITTED TO THE JEFFERSON CITY COUNCIL ON JANUARY 3, 2011 AD HOC COMMITTEE MEMBERS Ron Medin, Chair Jim Crabtree, Vice Chair Brad Bates Mike Berendzen Donna Deetz Dave Griffith Charles Lansford Jude Markway Dr. Bryan Pope Steve Rasmussen Eric Struemph REPORT OF THE SECOND AD HOC COMMITTEE ON REVITALIZATION OF OLD TOWN Introduction The second Ad Hoc Committee on Revitalization of Old Town' was created by Resolution 2010-019 adopted by unanimous vote of the City Council on July 19, 2010. Mayor John Landwehr's appointments of its members were approved by the City Council on August 16, 2010. The purpose of the second Ad Hoc Committee was "to explore, gather input from constituent interests, identify, and recommend actions to the City Council that local government might undertake to effectively encourage commercial development in the Old Town sector of our community". It was directed to report its finding and make recommendations to the Mayor and the City Council at the first council meeting of 2011. The task undertaken by the second Ad Hoc Committee on Revitalization of Old Town is a matter of great consequence. Old Town is an incalculable asset with its distinctive architecture and historic, established neighborhoods harboring the seats of local and state governments, the former Missouri State Penitentiary complex, the new federal courthouse, Lincoln University, several business districts including downtown and the Southside, and some of Jefferson City's largest and most stable employers. But Old Town is also a potential liability. Streets and sidewalks need to be maintained, police cars need to patrol, and fire trucks need to respond to fires in Old Town — notwithstanding the fact that the property taxes contributed to the public coffers by the average residential property in Old Town are nearly half of that paid elsewhere in Jefferson City. The renewed vitality and prosperity of the older established commercial and residential neighborhoods of Old Town are vital to the future of our entire community. Old Town's neighborhoods can be assets or liabilities tomorrow depending upon what is done today. While the second Ad Hoc Committee on Revitalization of Old Town was charged with addressing the commercial revitalization of Old Town, it did so with the understanding that commercial and residential revitalization are inextricably interwoven. Residential areas need ready access to retail and commercial venues. Commercial and retail establishments, in turn, need a residential community around them — people who do more than drive into Old Town at 7:30 in the morning and then drive back home to a neighboring community at 4:30 in the afternoon. The The Old Town area was officially designated by a vote of the City Council in the spring of 2007 and is roughly described as the area within lines running from Dix Road on the west to Stadium Boulevard on the south to Moreau Drive on the east and then back to the Missouri River on the north. 2 The individuals appointed to serve on the second Ad Hoc Committee were Brad Bates (businessman); Mike Berendzen (architect and former chair of Planning and Zoning Commission); Jim Crabtree, vice chairman ( member of Board of Directors of Old Town Revitalization Company); Donna Deetz (Old Town property owner and developer); Dave Griffith (5`h Ward Councilman); Charlie Lansford (interim director of Department of Community Development); Jude Markway (contractor and representative of Home Builders Association); Ron Medin, chairman (5`h Ward Councilman); Bryan Pope (3`d Ward Councilman); Steve Rasmussen (City Administrator), and Eric Struemph (4`h Ward Councilman). single most important thing required to revitalize the residential and commercial neighborhoods of Old Town is also the most difficult — those neighborhoods must be filled with people who own their own homes and businesses. The relatively simple, albeit expensive, tasks of providing essential services like street improvements, police and fire protection, and code enforcement must always be provided, but public services only support a community — they don't build it. Old Town is at risk unless and/or until it is filled with people who care about their homes, their businesses and their neighborhoods. Revitalization of Old Town is not an emotional response to some nostalgic memory of the past glories of our established neighborhoods. It is a dollars and cents calculation. Do we want deteriorating neighborhoods draining public coffers or do we want revitalized neighborhoods attracting residents, tourists and businesses? Without attention the property values of our older neighborhoods will decline even as they require more and more attention. Investing in Old Town will pay off for years to come as property values increase and the revitalized neighborhoods increasingly contribute to our tax base and attract tourists and customers to our community. That is the backdrop against which the second Ad Hoc Committee on Revitalization of Old Town pursued its work. 2 The Work of the Committee The Ad Hoc Committee met every two weeks from late August to early December of 2010. Much of its time was devoted to information gathering. Developers, property owners and other interested parties were invited to share their experiences in commercial redevelopment in Old Town and to suggest how further redevelopment might be better facilitated and encouraged .3 Input was not limited to the private sector. Ralph Rognstad, director of planning for the City of Springfield, Missouri, joined the committee by conference call and outlined the approach and experience of his community in promoting revitalization in older, established neighborhoods. Also, several members of city staff (in addition to committee members Administrator Steve Rasmussen and Community Development Interim Director Charlie Lansford) attended meetings and were invaluable sources of information and insights.4 The Ad Hoc Committee met in several venues outside of City Hall as part of its information -gathering, including O'Donoghue's Steaks and Seafoods, Brews Coffee House in the old Warwick Village, 124 E Dunklin Street in the Southside redevelopment project, and 206 E High Street (the old Exchange Bank building). Committee members returned to City Hall for two final meetings to discuss the information gathered over the prior eight weeks and to arrive at a consensus on recommendations to be submitted to the City Council. Recommendations It should be noted at the outset that the second Ad Hoc Committee on Revitalization had a narrower focus than its predecessor, specifically focusing on commercial revitalization within Old Town. The report of the first Ad Hoc Committee issued in 2008 concluded that the Jefferson City Area Chamber of Commerce should be primarily responsible for such commercial revitalization. This report does not alter that conclusion, but it does suggest action items which — though essential for the success of commercial revitalization efforts - are beyond the immediate control of the Chamber of Commerce. While they should not supplant the Chamber's leadership role, the cooperation of local governments and other agencies acting in concert with the Chamber is essential to commercial renaissance in Old Town. Accordingly, the following recommendations are categorized by the entities or groups which could be responsible for initiating them. 3 Those accepting the invitation to visit with the Ad Hoc Committee included Michael p g Berry, Cindy Blosser, Debbie Brown, Sam Bushman, Carrie Carroll, Ron Dawson, Juanita Donehue, Phil Freeman, Ryan Freeman, Darrell Hubble, Connie Hubble, Larry Kolb, Beth McGeorge, Mark Mehmert, Steve Rollins, Hank Stratman, and Jim Wisch 4 Assistant City Administrator Melva Fast served as staff liaison to the committee and coordinated meetings and testimony in additional to providing her expertise. City planner Janice McMillan, senior code enforcement officer Ron Davenport, and Matt Morasch, deputy director of Community Development, each contributed greatly to the committee's knowledge base. 3 City Council 1. Incentives for Condominium Lofts in Old Town. While at first blush incentives for residential living might appear to fall outside of the purview of commercial revitalization, reversing the decades -old trend of allowing the upper levels of commercial buildings to sit vacant is a key to greater vibrancy in the downtown area and other areas of Old Town. The Ad Hoc Committee heard the familiar litany that longtime owners of the buildings have no real incentive to utilize the upper floors even though those spaces are readily filled when they become available.5 The structure of the incentives is something for the City Council to decide, but the Ad Hoc Committee suggests that one approach might be providing incentives based upon condominized commercial buildings where ownership of the upper living spaces could be separated from ownership of the retail space at the street level. Such an approach would provide building owners with an immediate return on upper floor space that would otherwise sit vacant, and could be further encouraged with the following incentives: a. Expand the existing down payment incentive program currently available to purchasers of vacant property in Old Town to include those purchasing upper levels of commercial buildings in Old Town. The new condominium owners — like the new homeowners under the existing program — would receive up to $5,000 in down payment assistance for purchasing space previously vacant and if the space is used for residential living there for five years. b. Expand the existing tax reimbursement program currently available to purchasers of vacant property in Old Town to include those purchasing upper levels of commercial buildings in Old Town. The new condominium owners — like the new homeowners under the existing program — would receive reimbursement for their real estate taxes for five years following their purchase of previously vacant space if the space is used for residential living for five years. The two programs described above already have funding with annual limits on the number of participants. Expanding them to include purchasers of condominium lofts in Old Town would not require increased funding in the near term because the funds already appropriated are not fully utilized by the existing programs. 2. Planning and Design Commission A number of witnesses appearing before the Ad Hoc Committee expressed concern with an indifferent reception at City Hall when developers, sophisticated or otherwise, approach city ' Among others, see testimony of Sam Bushman on September 17, 2010, Ron Dawson on October 1, 2010, and Carrie Carroll On October 15, 2010. 4 staff with proposals for projects within Old Town.b There is any number of circumstances that might give rise to that perception. The Ad Hoc Committee did not determine whether the perception is reality, but notes with approval that City Administrator Steve Rasmussen has already initiated measures in response to it.7 Hopefully, those measures will allow most issues to be amicably resolved to the mutual satisfaction of both developers and city staff. Nonetheless, the Ad Hoc Committee believes there should be an appeals panel available for those situations where the parties are unable to resolve their differences. It is anticipated that the appeals process would rarely be invoked, but having the apparatus in place would both encourage conciliation early in the process and, if that does not occur, serve as a neutral forum short of a hearing before the City Council. The Ad Hoc Committee recommends the creation of a Planning and Design Commission as an appeals body to promptly hear disputes between developers and staff regarding non -zoning matters. The precise composition and operation of the appeals tribunal is left to the City Council, but the Ad Hoc Committee suggests two possible alternatives: • Option A. Members would be appointed from the professions of architecture, engineering, building/construction inspection, etc. The members would be appointed by the Mayor with the concurrence of the City Council, and the Commission Chairman would serve an ombudsman between City departments and development community.$ Decisions of the Commission would be appealable to the City Council. • Option B. The Commission would be comprised of specific city department heads (i.e., deputy directors from Community Development) from the fields of building/code enforcement, public works and planning. Decisions would be appealable first to the City Administrator and ultimately to the City Council. 3. Call Before You Start. Various representatives of city staff suggested that among the reasons that would-be developers become disenchanted and/or frustrated is that they begin the development/adaptive re- use process before being totally acquainted with the challenges posed by their particular project. As a result the unsophisticated developer loses both time and money correcting course after getting off on the wrong foot. To encourage developers within Old Town to consult with city staff before committing to a project, the Ad Hoc Committee recommends a one-time tax abatement of the developer's city real estate tax bill for the year immediately following completion of the project. The tax abatement would be available only to those working within Old Town who: (a) consult with a pre -approved expert about the feasibility of the project and cooperatively review the "Developer Checklist (see p.12); and (b) meet with city staff regarding the proposal 6 Among others, see testimony of Phil Freeman on September 3, 2010, Connie Hubble and Debbie Brown on September 17, 2010, and Hank Stratman on October 1, 2010. 7 Mr. Rasmussen's actions are described in the Staff recommendations of this report. 8 Among others, Michael Berry expressed support for the ombudsman concept in his testimony on September 3, 2010. 5 before redevelopment begins; and (c) do not qualify for the facade improvement program. The one-time tax abatement would not be available until the tax year following completion of the proposed project. 4. Adaptive Re -use Incentive Currently there are "adaptive re -use" projects within Old Town that add greatly to revitalization efforts but fall outside the parameters of existing incentive -based programs. Adaptive re -use is a process where buildings that have outlived their original purposes are adapted for new uses while retaining their historic features. For example, an old factory may become an apartment building or a rundown church may find new life as a restaurant. The Ad Hoc Committee recommends that an incentive program be developed to encourage adaptive re -use by providing two years of tax abatement for qualifying projects. The requirements for the two-year tax abatement on an adaptive re -use project might include: * qualifying for and completing the Call Before You Start program; * investing at least $10,000 in the adaptive re -use project; * ineligible for any other city incentive program (other than the Call Before You Start incentive); compliance with all city code requirements; * occupied at completion and throughout the tax abatement period; and * all back taxes and city liens against the adaptive -reuse project are paid. Tax Increment Financing (TIF) Within Old Town A possible source of funding of parking and other mandated public accommodations associated with projects in Old Town could be Tax Increment Financing (TIF). While TIF does require an overall redevelopment plan and a determination of blight, the TIF statute is flexible enough to provide for the phasing in of multiple redevelopment projects. TIF does not alter the current revenue stream to taxing entities, since only the proceeds from the increment are used to fund public improvements. Additionally, the Old Town area meets the TIF "but for" condition in that redevelopment is unlikely to take place without such an incentive. Juanita Donehue, a pioneer in the revitalization of Old Town, told the Ad Hoc Committee that TIF was absolutely essential to the success of her restaurant project.9 To mitigate the redevelopment barrier posed by infrastructure inadequacies, the Ad Hoc Committee recommends the City Council encourage developers to establish TIF districts in Old Town to fund public infrastructure improvements and direct city staff to assist in those efforts. 6. Land Assemblage As the Ad Hoc Committee conducted its public input meetings, it became apparent that properties are not islands unto themselves. Neighboring properties in poor condition often discourage the rehabilitation of buildings by otherwise willing property owners. This scenario was 9 See Juanita Donehue's testimony on September 17, 2010. 6 recently successfully overcome by developers Larry Kolb and Steve Rollins who bought an entire block of Southside properties before beginning their redevelopment. In their testimony before the Ad Hoc committee, both men emphasized the importance of assembling blocks of properties as a precursor to renovation projects.' 0 While the Southside project was fortunate to have both willing buyers and willing sellers, that is not always the case. In some instances, the intervention of local governments and other entities might be necessary to acquire and/or combine adjacent properties to achieve the necessary economy of scale that will facilitate revitalization goals. Vacant, under-utilized buildings and blighted properties might become available through foreclosure or estate consolidation. Although each situation is unique, the City of Jefferson should work cooperatively with other parties to combine properties for consolidated redevelopment. As a last resort, the Ad Hoc Committee believes the City Council should explore whether the eminent domain capacity of the Land Clearance for Redevelopment Authority (which is currently combined with the Jefferson City Housing Authority's functions) should be restructured to make the eminent domain process clearer, more practical and more accessible.' The Ad Hoc Committee is mindful that private property rights are well -ingrained in the fabric of our law and culture, and agrees that the power of eminent domain should be used sparingly but it should nonetheless be considered for use in narrowly -prescribed circumstances. 7. Open Beverage Container Districts The work of the Second Ad Hoc Committee on the Revitalization of Old Town took place in tandem with (and at times overlapped) the community strategic planning process undertaken by the Jefferson City Area Chamber of Commerce. The Ad Hoc committee notes that among the more readily attainable objectives identified by Chamber focus groups was the creation of one or more "festival" districts within Old Town. A key feature of such a festival district would be to allow open containers of alcohol on the public streets within the district in connection with whatever entertainment is being offered. It would permit/encourage the movement of attendees throughout the various venues within the festival district and might boost attendance at special events already occurring with Old Town such as the annual Salute to America and Thursday Night Live! in the downtown area. 12 Such a proposal is not without its concerns including crowd control and public safety, but the Ad Hoc Committee believes City Council should consider the pros and cons of an open beverage container district ordinance, beginning with one or more hearings before the City Council's public safety committee. 10 See the testimony of Larry Kolb and Steve Rollins on October 15, 2010. 11 Mark Mehmert of the Jefferson City Area Chamber of Commerce was supportive of this concept at the meeting on December 3, 2010. 12 Festival districts might also be centered in the near Eastside in the vicinity of Prison Brews and The Mission or in the Millbottom area which is currently the subject of a Greening of America grant. 7 8. Abandoned Building Redemption Three years ago the first Ad Hoc Committee on Revitalization of Old Town noted that a "disturbing trend within Old Town has been the willingness of some commercial property owners to allow their buildings to sit idle as they wait for the rising tide of economic development to improve their property values. This has a number of negative results including increased oversight by police, fire and code enforcement and a general `dragging down' of the neighborhoods where these properties sit vacant". It was suggested at the time that registration of vacant buildings might be desirable. The second Ad Hoc Committee on Revitalization of Old Town would like to underscore that recommendation — vacant properties within Old Town should be registered. Springfield City Planner Ralph Rognstad cited his community's vacant property registration program as one of the tools that has helped revitalize Springfield's urban core. The details of such registration should be left to the City Council but the model offered by the first Ad Hoc Committee still seems workable: a. A building owner would be required to register if the property sits vacant for more than six months. b. Registration would include completion of a vacant building form, a plan to maintain the building's exterior, and registration fee. c. Registration would be renewed semi-annually for as long as the building remained vacant. Registration would not only discourage vacant buildings and recoup some of the city's administrative expenses in dealing with them, it would also provide a registry of potentially available properties to anyone interested in investing in Old Town. 9. Parking in Old Town Several witnesses appearing before the Ad Hoc Committee identified current parking requirements as an obstacle to redevelopment of Old Town. 13 Projects otherwise viable are sidetracked because parking requirements developed for projects in newly developed areas of town are ill-suited for the confines of older, established neighborhoods. The Ad Hoc Committee recommends that parking requirements for in -fill development be relaxed and that the City should be alert for opportunities to create off-street parking for nearby businesses within Old Town. Further recommendations on the parking issue appear under the Staff section of this report. 13 Amon other, see the testimony of Phil Freeman and Michael Among y Berry on September 3, 2010; Juanita Donehue, Debbie Brown, and Sam Bushman on September 17, 2010; and Ron Dawson on October 1, 2010. 8 10. The Southside Redevelopment Plan 14 In July of 2009 the Southside Redevelopment Plan was finalized by the Arcturis consulting group. After an extensive study of the existing conditions on the Southside, the plan outlined recommendations for future redevelopment options with a particular emphasis on funding from state and federal resources. The three partners for the project — the City of Jefferson, the Jefferson City Area Chamber of Commerce and the Housing Authority — have yet to formally adopt the Southside Redevelopment Plan and it should not be overlooked as the revitalization of Old Town is pursued. The Ad Hoc Committee believes that the Southside Development Plan should be reviewed and evaluated in light of the evolving reality within Old Town so that there is a shared philosophy and vision for that crucial area of our community. That review should ultimately include, among others, the Old Town Revitalization Company, the strategic planning process under taken the Jefferson City Area Chamber of Commerce, and the Housing Authority, but might begin with the City Council's Administration Committee working together with the Planning & Zoning Commission. Old Town Revitalization Company Mentoriniz Program Renovations of existing buildings draw a greater number of "unsophisticated developers" than new construction. Perhaps it appears less challenging to renovate an existing building than to start from scratch. In fact, the opposite is often true. These unsophisticated developers would benefit from the experience of others who understand and appreciate the considerable challenges inherent in renovation. 15 The Ad Hoc Committee recommends that the Old Town Revitalization Company create a mentoring program in which experienced developers would be paired with newcomers to advise them about both the promise and the perils of building renovation. 2. Involvement of Cole County Government and Jefferson City Public Schools The Old Town Revitalization Company was created by action of the City Council, but any local economic development effort necessarily requires interaction and cooperation with Cole County government and the Jefferson City School District. Along with the City of Jefferson, they are stakeholders who benefit as property values and their tax bases increase with the commercial revitalization of Old Town. Spurring revitalization through economic incentives and governmental policies should not fall solely upon the City of Jefferson. The Jefferson City School District, for example, could greatly advance an influx of investment into Old Town by examining its elementary school district lines to reduce the high concentrations of low-income students in 14 A subcommittee comprised of Jim Crabtree, Mike Berendzen, and Janice McMillan contributed heavily to this portion of the Ad Hoc Committee's report. 15 Among others, see the testimony of Connie Hubble on September 17, 2010, and Hank Stratman on October 1, 2010, about the challenges facing "unsophisticated" developers. 9 elementary schools within Old Town and by considering the placement of new and enhanced facilities within Old Town. 16 The Ad Hoc Committee suggests that the Old Town Revitalization Company is uniquely suited to be at the crossroads where the interests of the City of Jefferson, Cole County government, and the Jefferson City School District intersect. It encourages the Old Town Revitalization Company to solicit the support of both Cole County government and the Jefferson City School District and to recruit their representatives to its board of directors. 3. Institutions of Higher Learning in Old Town The importance of Lincoln University to Old Town cannot be overstated. Not only does Lincoln University's history and impressive buildings serve as a bulwark against the deteriorating urbanscape found in some areas of Old Town, but it also revitalizes our community with each new incoming class of students. Moreover, Lincoln University's status as a black land grant institution and its important research for Department of Defense presents many opportunities for an influx of federal dollars into Old Town and the greater Jefferson City community. The Ad Hoc Committee notes with approval that there is currently a representative of Lincoln University on the board of directors for Old Town Revitalization Company. Such involvement should be encouraged and strengthened. There are other colleges and universities with a presence in Jefferson City, but not currently within Old Town. Satellite and extended campus opportunities within Old Town should be explored for Columbia College, University of Missouri, William Woods University, State Fair College and Linn State Technical College." While such opportunities might not match the impact of Lincoln University, the daily presence of college students within Old Town would help spur economic activity in the area. 4. Involvement of Jefferson City Area Chamber of Commerce As noted at the outset, the first Ad Hoc Committee on Revitalization of Old Town recommended that commercial revitalization of Old Town be coordinated through the Jefferson City Area Chamber of Commerce. The Chamber has followed through on that recommendation by offering a meeting place for Old Town Revitalization Company and having its representatives in attendance at those meetings. In the nearly three years since the report of the first Ad Hoc Committee on Revitalization of Old Town, the importance of a revitalized Old Town to the economic well-being of the entire community has become increasingly apparent. The on-going strategic planning process conducted by the Chamber of Commerce is the most recent and far- reaching acknowledgement of that reality. 16 Among others, see the comments of committee member Brad Bates on October 15, 2010. 17 The strategic planning process undertaken by the Jefferson City Area Chamber of Commerce has identified the current St. Mary's Hospital campus as a possible site for satellite university programs when the hospital is moved to a new facility. 10 Revitalization of Old Town should move to the front of the Chamber of Commerce's agenda. That should be reflected in funding by the Chamber of Commerce in support of revitalizing Old Town (including the activities of Old Town Revitalization Company) as part of its continuing role as the economic development arm of Jefferson City and Cole County governments. 5. Award Program The Historic City of Jefferson City has had considerable success drawing attention to noteworthy renovation projects with its periodic "Golden Hammer Awards". Most of the projects recognized have been residential. Old Town Revitalization Company, in cooperation with the Chamber of Commerce, should develop an award program to recognize good examples of design, execution and maintenance in areas of rehabilitation, renovation, adaptive reuse and infill/new construction in the commercial sector. 6. Participation of City Staff in Old Town Revitalization Company The Old Town Revitalization Company's regular interaction with city government is usually limited to a city staff person acting as secretary for the non-profit corporation and a councilperson serving as liaison between it and the City Council. City staff and representatives of Old Town Revitalization Company typically find themselves on opposite sides of the table even when working towards common goals. That isn't all bad. Part of the legitimacy and effectiveness of the Old Town Revitalization Company is rooted in its independence from city government. However, as the community comes together in the promotion of Old Town it seems advisable that both city government and Old Town Revitalization Company have the opportunity to interact on a regular basis so that the right hand knows what the left hand is doing (and vice versa). Accordingly, the Ad Hoc Committee asks the Old Town Revitalization Company to consider amending its by-laws to add selected members of the city staff as advisory directors. City Staff City Ombudsman/Problem Solver A comment heard repeatedly from those working with city staff on revitalization projects in Old Town is that they heard different things at different times from different staff people. The Ad Hoc Committee was considering how best to address this concern when City Administrator Steve Rasmussen advanced the following framework to ensure expeditious resolution of complex redevelopment issues: "Deputy directors or professional engineers in the Department of Community Development 11 will be charged with specific duty of serving as ombudsman' a and problem solvers for both the novice and experienced developers with difficult or multi -faceted redevelopment projects in Old Town. Specifically, the Advocate will serve as coordinator for the City's review of redevelopment projects, bringing appropriate staff=, whether from planning, public works, building codes, fire department, etc. to make sure all aspects of a redevelopment are anticipated, and worked though to a successful conclusion. The Director of the Department of Community development will still serve as sounding board for the Advocates and for developers. The Director will ensure that all department resources have been exhausted prior to referring a project on to the City Administrator or other appeals body." The Ad Hoc Committee commends City Administrator Steve Rasmussen for his initiative in this area and sees no reason to add to it at this juncture. The suggested framework, however, does not obviate the need for the Planning and Design Commission discussed above and, in fact, anticipates such an appeals process. 2. Developer Checklist City Administrator Steve Rasmussen presented the committee with pamphlets currently available to the public from the Department of Community Development addressing a wide variety of issues confronting developers in Old Town and elsewhere. While these pamphlets appear to be very useful for discrete topics, there is no single document providing an overview of the development process. The Ad Hoc Committee recommends that the Department of Community Development prepare a comprehensive guide to the development process in older, established neighborhoods of Jefferson City which should include, among other things, a checklist of items common to all projects that need to be done by the developer in consultation with city staff' 9 Copies of this comprehensive guide should be distributed through the Jefferson City Area Chamber of Commerce. 3. Just Say Yes Witnesses before the committee expressed frustration with some staff persons who appeared all too ready to say they couldn't do the project in the way it had been presented, but offered no alternatives or solutions to the problems raised .20 The Ad Hoc Committee believes that that staff members need to buy into the idea that they are as much responsible for "community building" as they are for enforcing codes and regulations. While "just say yes" is an oversimplification (and ultimately an undesirable outcome), staff persons need to work 18 Among others, see the testimony of Michael Berry on September 3, 2010, and Hank Stratman on October 1, 2010, in support of the ombudsman concept. 19 Among others, see the testimony of Debbie Brown, Connie Hubble and committee member Donna Deetz on September 17, 2010, in support of developer checklist. 20 Among others, see the see the testimony of Debbie Brown, Connie Hubble and committee member Donna Deetz on September 17, 2010, and Hank Stratman on October 1, 2010. 12 cooperatively with developers to find reasonable solutions to the conflicts that inevitably arise in the development process. Personnel evaluations of staff persons should include criteria measuring their ability to work and cooperate with developers and other members of the general public. 4. Re -Evaluation of Downtown Parking Assignments Developer Ron Dawson questioned whether the current assignment of downtown parking in public facilities takes into account the revitalization of Old Town.'' For example, does it serve the interest of a revitalized downtown to have parking spaces in the Jefferson Street garage rented by lobbyists who only use them four months of the year? Would it not be better to have those spots available to those who might live and work in the downtown area on a full time basis if they had ready access to parking. The Ad Hoc Committee recommends that downtown parking assignments be re-evaluated to determine how the available parking might be better utilized to encourage living and working in the downtown area. 5. Loan Program Currently the City of Jefferson receives Community Development Block Grant funding from the federal government which is passed on as grants to qualifying projects within the community. Springfield Planner Ralph Rognstad described another approach — a revolving loan program in which CGBG funds are loaned rather than given to deserving projects. As the loans are repaid they are pooled with additional CDBG funds to finance additional projects. In that way, the same funds can be used many times over. While Jefferson City does not receive the same level of CDBG funding as Springfield, the Ad Hoc Committee recommends that a loan program involving at least some of those federal funds be explored further. For example, it might be productive to incentivize, through a favorable loan program or gap financing, specific retail businesses (like a small grocery store) that would add to the livability of Old Town. 13 Conclusion The second Ad Hoc Committee on Revitalization of Old Town would be remiss if it did not acknowledge the work of so many people throughout our community since "Old Town" was officially designated as a unique sector of Jefferson City in the spring of 2007. Much has been accomplished. The foregoing recommendations are offered not to replace, but to build upon, the foundation that has been laid. The Old Town Revitalization Company needs to continue growing and working to revitalize Old Town. Existing progratns to attract both businesses and residents to Old Town need to continue to be funded. Code enforcement to improve both the safety and the appeal of Old Town needs to continue as a priority.22 Funding and tools for commercial and residential development available from state and federal govenunents23 should continue to be pursued and used locally. The word is out on Old Town.'` ` The ranks of those committed to its revitalization have grown .25 As demonstrated by the on-going strategic planning process undertaken by the Jefferson City Area Chamber of Commerce, the need for a revitalized Old Town is more widely recognized each day. The future of Jefferson City rests to a large degree in the area where it all began — in Old Town. 21 Michael Berry expressed a similar concern in his testimony on September 3, 2010. 22 The city's Community Development Department initiated the so-called "NICE" program several years ago where inspectors visit neighborhoods and warn residents of violations before they rise to the level of complaints. 23 Federal incentives include Historic Tax Credits and Brownfield Assessment Grants and Loans. State incentives currently available are Tax Increment Financing (TIF), Community Improvement Districts (CID), Neighborhood Improvement Districts (NID), Missouri Historic Tax Credits and Chapter 99 Tax Abatement. 24 While the term "Old Town" has become familiar to local government and those involved in the development, public education needs to continue. Improved communications and media coverage is critical to the long term community "re -building" and the revitalization of Old Town. Two "no -cost" examples come to mind, the Jefferson City Area Chamber of Commerce has a monthly newsletter that should consistently include a section on Old Town; the City of Jefferson has a semi-annual report to citizens that should always include an article on Old Town. 25 As more groups and individuals become involved in the Old Town revitalization efforts, coordinated calendars and cooperation among business associations, the arts community and the Convention and Visitors Bureau should be encouraged. Currently the Jefferson City Arts Committee, the Convention and Visitors Bureau the business community are creating community calendars. Perhaps a composite calendar from all of these sources could highlight events and venues within Old Town to create a synergy of activity within Old Town. 14 Ad Hoc Committee on Old Town Meeting Minutes Tuesday - August 24, 2010 Members Present: Ron Medin-Chr, Jim Crabtree, Dave Griffith, Mike Berendzen, Eric Struemph, Donna Deetz, Brad Bates, Bryan Pope, Steve Rasmussen, Jude Markway(arrived late) Staff Present: Melva Fast, Charles Lansford, Janice McMillan, Matt Morasch Guests: Ben Yarnell -News Tribune The meeting was called to order at 7:35 a.m.; roll call was taken- a quorum was present. By unanimous consent: Ron Medin was selected Chairman; Jim Crabtree was selected Vice -Chairman. Chairman Medin reviewed the Final Report prepared by the Ad Hoc Committee on Revitalization of Old Town in 2008. Many of the foundational and residential investment priorities have been accomplished. However, the commercial investment/ revitalization priorities have not been fully addressed. The purpose of this committee will be to foster and encourage commercial investment and revitalization in Old Town. Future meetings will be conducted informally by inviting individuals who are involved in or experienced with various aspects of commercial redevelopment. It was also suggested to get input from city staff and outside communities. Meeting will be twice monthly -the first and third Fridays at 7 a.m. at City Hall. Following that schedule the next meeting will be September 3. Meeting adjourned at 7:55 a.m. Ad Hoc Committee on Old Town Meeting Minutes Friday - September 17, 2010 At O'Donohue's Restaurant Members Present: Ron Medin-Chr, Jim Crabtree, Dave Griffith, Jude Markway, Mike Berendzen, Eric Struemph, Donna Deetz, Brad Bates, Steve Rasmussen; Staff Present: Melva Fast, Ron Davenport, Janice McMillan; Guests: Juanita Donehue, Debra Brown, Connie Hubble, Sam Bushmann, Mark Mehmert The meeting was called to order at 7:35 a.m.; roll call was taken- a quorum was present. Minutes from the September 3 meeting were approved. Juanita Donehue presented her experience in the redevelopment of her property at 900 E High. She noted the negativity that surrounded her efforts - especially the TIF. Future needs for Old Town are incentives for businesses to rehab older properties and financing to locate here; long range planning for parking with supportive code enforcement. Debra Brown agreed that parking is an issue; everyone needs to be creative in solving the problem. She cited getting different answers from various city staff; need different guidelines for old and new development, recommended that there be something in writing -guidelines or a checklist. Her recent project at Warwick village has been much smoother -more time taken by city staff to go through the process and assist her. In response to the parking dilemma, the notion of shared parking was cited as a creative response. Blackwell's Garage was cited as an example of possible shared space. Public works recently completed a parking study in the area. That study will be distributed to the Committee at the next meeting. Connie Hubble noted that she had used historic preservation tax credits and was pleased with the result. Currently the Hubbles are trying to purchase 628 E High and have been discouraged. Don't know how to determine feasibility of project balanced against the cost for architectural assistance, new developers need good advice and proactive city staff to be successful. Eric Struemph asked if an "Old Town Specialist" was needed, and recommended that a Council Work Session be dedicated to discuss Old Town problems. Steve Rasmussen identified Ron Davenport as the Old Town Specialist for developers to contact. He also stated that the city was offering a free analysis/feasibility study to all prospective developers. It was noted that the public was not aware of these services. Perhaps the Committee should look at other cities to see successful models of how developers and staff work together on the difficult projects. It was noted that positivity is required. Sam Bushmann stated that the downtown had the same problems; parking is perceived to be too limited. Second and third floors are vacant and property owners will not fix them up even though there is a desire by younger folks to living in loft apartments in the downtown area; need a downtown manager and events to connect the various neighborhoods and produce a unique and interesting venue and atmosphere. The next meeting is at Warwick Village- Brews Coffee House on October 1; meeting adjourned at 8:40 a.m. Ad Hoc Committee on Old Town Meeting Minutes Friday - October 1, 2010 At Brews Coffee House Members Present: Ron Medin-Chr, Jim Crabtree, Dave Griffith, Donna Deetz, Mike Berendzen, Eric Struemph, Brad Bates; Staff Present: Melva Fast, Ron Davenport, Janice McMillan; Guests: Debra Brown, Darryl Et Connie Hubble, Sam Bushmann, Mark Mehmert, Ron Dawson, Hank Et Linda Stratman The meeting was called to order at 7:35 a.m.; roll call was taken- a quorum was present. Minutes from the September 17 meeting were approved. Hank Stratman presented his experiences in the redevelopment of his property Warwick Village at 1507 E. McCarty St. He noted the two most significant challenges were parking and zoning compliance-- the requirements are not suited for Old Town redevelopment. Stratman noted that he spent significant money for engineering and design -beyond what was necessary -issues were too black and white Then as a follow-up, inspectors do not measure and check for exact compliance with the specific plans that were required. A recommendation is that there is a need for an advocate at city hall for "rookies" who do not know all of the rules and do not have experience. They need someone to talk to. State and federal funds were too difficult; also recommended a source for advice about funding. Ron Dawson advised that he (his property) is the parking solution for the 800- 900 blocks of E. High redevelopers. Since he has a large lot, several other businesses claim his parking and it is never used. His experience on the 100 block of E. High is that owners and tenants of High Street properties are not given assistance or preference for their parking needs; the state always gets it. (Example is Lot #1- when legislature is not in session, half of that lot remains empty;) re -assign parking and give preference to owners/tenants. On the 300 block of E. High property owners lost significant parking for the county jail. Dawson suggested that upper floors are good for residential and the commercial/ retail development will follow. it was cited that code compliance is not required in older buildings until ownership changes; many property owners are not in compliance with building codes, but they are allowed to continue to operate while developers must comply to their economic disadvantage. Facade improvement program is helpful and could also be advantageous for loft development - the same way. Dawson further recommended giving an advantage to developers who come to Old Town; reduce sales tax, give tax abatement or "penalize" green field development outside of Old Town by assessing an extra assessment. He stated that the prison redevelopment has been slower than expected and his tenants at 800 block of E. High experience "petty" vandalism, skateboarding on private property etc and police seem slow to respond. This increases the negative perception of operating a business in Old Town. Connie Hubble agreed that "old" property owners were not required to comply with codes but if you had recently upgraded your property there was consistent City oversight and code requirements brought to your attention. Chairman Medin suggested that after the next meeting, the committee would begin to look at recommendations for actions to assist the Old Town Redevelopment efforts. Eric Struemph requested a map that shows the public school elementary school boundaries. The next meeting is October 15 at 124 E. Dunklin Street; meeting adjourned at 8:00 a.m. Minutes Ad Hoc Committee on Old Town October 15, 2010 At 124 East Dunklin Street Committee Members Present: Ron Medin (Chairman), Brian Pope, Dave Griffith, Eric Struemph, Jim Crabtree, Dave Griffith, Donna Deetz, Mike Berendzen Staff Present: Ron Davenport, Janice McMillan Guests: Larry Kolb, Steve Rollins, Jim Wisch, Sam Bushmann, Mark Mehmert, Carrie Carroll. Chairman Medin called the meeting to order at 7:00 a.m., at 124 East Dunklin Street. Everyone introduced themselves. A quorum was present. Minutes from the October 1 meeting were approved. Ron Medin asked Larry Kolb, Steve Rollins, and Jim Wisch about redeveloping in Old Town, in particular the 100 block of East Dunklin Street. He said the committee was interested in their candid testimony regarding the machinery of city government, external factors, and processes, as well as their suggestions on how to make things work better. Larry Kolb remarked that all-in-all everything went pretty well. He described the deterioration of the block, and how they wanted to include the entire block in their redevelopment plans to address its deficiencies and turn it around. He said it is easier to address issues block by block rather than one building at time. Steve Rollins said the project presented many unknowns, and the renovation grew from what it was originally envisioned to be. Originally they talked about doing a facelift, but it turned into a total gut job. It is difficult to know two years in advance of construction what problems will be encountered. He said Ron Davenport and the building inspectors (building, electrical, plumbing) took a common sense approach with the project. The owners wanted to have a top quality job and comply with the codes. He felt the building inspectors helped them achieve those goats. Jim Wisch said that Ron Davenport and his inspectors were very good about offering options for the building renovations. He said their experience with the outside renovations were difficult. Larry Kolb concurred that dealing with code compliance was easier on the building interiors. Ron Medin asked if there was sufficient flexibility built into the code or was it something just done for this project? Ron Davenport said the code does offer some flexibility for the code official. He felt the intent of the code could be achieved while offering some flexibility, however the code official has responsibility to ensure the project provides safety for the public. He said the building official has some flexibility to find common ground with the project manager. Jim Wisch said this project forced them to deal with the regulatory requirements of various agencies. The experience with sidewalks in front of the buildings was offered as an Minutes October 15, 2010 Ad Hoc Committee on the Redevelopment of Old Town page 2 example. Jim Wisch explained that the interpretation of Americans with Disabilities Act (ADA) rules by engineering staff appeared to conflict with the requirements of the State Historic Preservation Office and National Park Service, so much so that they could not do what city engineers suggested if they wanted to keep their eligibility for historic tax credits. In addition to addressing ADA requirements, they wanted an area for sidewalk dining. In the end they paid $40,000 more for their sidewalk survey and plan, which was an extra, unanticipated cost. Since the project had previously been approved for Tax Increment Financing (TIF), they had already estimated their fixed costs; they couldn't go back and include the additional costs in the TIF. Steve Rollins said their first sidewalk plan showed a 3 -foot sidewalk; city engineers replied it needed to be 4 feet, then 5, 6 or 7 feet. He said they made a scale model of the sidewalk and streetscape to show how it would all work and eventually settled on a width of six feet. He said that after this was agreed to on-site, the city's plan reviewers hesitated to approve the plan. Jim Wisch said another problem arose when they discovered a manhole in the middle of the Texas T building. After smoke testing, they finally located the extent of the stormwater network under the building. Unfortunately, they had not anticipated this either, and there was no funding to take care of this additional expense. The developers questioned what prior process at the city would have allowed construction of a building on top of the storm sewer. Ron Medin asked if there was a need to codify flexibility for redevelopment projects. Ron Davenport said there are mechanisms in the building code that permit flexibility, however he can't speak for other departments' procedures. Steve Rollins said another of their frustrations was regarding signage. What seemed like a simple thing took a long time to be resolved. The National Park Service would not allow certain sign types to be placed on the building since they could not document they had been there in the 1920s. Signs posts were seen as an acceptable solution, but the posts would be on right-of-way. The length of time to get the issue resolved was a concern. He felt they needed a common sense solution to the problem. Ron Medin asked if there was a way to mesh the need for signage, historic restrictions and city code. Janice responded that these particular signs posed a concern about private use of public right-of-way, which was eventually resolved through a permissive use of right-of- way permit. She said while the Law Department would weigh in on sign code changes, it was her opinion that special signage needs could be addressed through overlay districts. Larry Kolb said that redevelopment is very tough the first time, and that people need to educate themselves. Carrie Carroll agreed that it required a lot of paperwork to get through the historic tax credit process, and she appreciated Jim Winch's expertise. Minutes October 15, 2010 Ad Hoc Committee on the Redevelopment of Old Town Page 3 Ron Medin remarked that the committee had discussed the "unsophisticated developer" who could be helped by having a caseworker at City Hall assist them with their projects. He asked the three guest developers for their reaction to creating such an ombudsman and the possibility of having a review board to mediate adverse decisions by staff. The guest developers responded positively to that idea. Jim Wisch remarked that for developers "time is money" and he felt that staff sometimes does not understand that. He referenced his differences with city engineers on keeping sidewalks open during the downtown facade renovations. Jim Crabtree said that what he is hearing from the guest developers is that city staff may not expect or offer consistent solutions. Larry Kolb said that staff is sometimes in a box to enforce the code. He agreed that it would help to have a single point of contact to advise people, especially with financing of redevelopment. Jim Wisch said they have a lot of tools in the toolbox, but coordination is lacking. He mentioned a presentation he had made to several organizations recently, including the city manager's association, and a state historic preservation group. Donna Deetz agreed it would help to have something in writing, a list of things to consider when embarking on redevelopment projects. Mark Mehmert asked what made this project successful; what helped to remove barriers, and how can redevelopment be incentivized? Brian Pope suggested part of what made this project successful was its scale and that the developers were willing to make significant investments. Steve Rollins said the fact there were motivated sellers, motivated buyers and the interest of all the neighbors made it work. Brian Pope asked if there were no state tax credits, what would it take to have a successful project such as this? It was mentioned that RSMO Chapter 99 benefits would help (such as in the old urban renewal areas). The need for grocery stores in neighborhoods was cited as important to draw residential redevelopment. The developers agreed that having a larger project area contributed to their success, citing the positive impact of Central Dairy's renovation of the storefront on the north side of the street. When asked about other development opportunities in the area, Larry Kolb said the Blattner building would be a great site for loft apartments if a partnership could be put together to finance it. They would certainly have a need for architectural fees and parking for tenants, such as the city -owned parking lot located across the street. Eric Struemph asked if parking was an issue for them. Steve Rollins said they got creative about parking, and there is a concern for the future if uses come in that demand more parking. Jim Wisch suggested the city explore changes that would bring the southside area more in line with downtown parking requirements. With discussion ending, the meeting adjourned at 8:05 a.m. Minutes Ad Hoc Committee on the Redevelopment of Old Town Page 2 Discussion about what was necessary to improve the downtown and influence property owners to rehab their properties included: peer pressure among owners, vibrant lower level business development, encourage owner -occupied living to reduce vacancy, educate lending institutions, use of Chapter 99 for ten year tax freeze. Brad Bates presented information about the socio-economic disparity among the elementary schools. He stated that parity among these schools was necessary to make the Old Town more attractive to potential buyers and property owners. Families will avoid those school areas that are low performing/ tower income and perceived as less safe. It was agreed that balancing the elementary school areas was critical by adjusting school boundaries and integrating all economic strata. The next meeting will be at City Hall and the Committee will begin to categorize the problems/issues presented over the past two months. Meeting adjourned at 8:00 a.m. Cindy Blosser gave a tour of the building -204 E High Street and discussed the potential. Members also went next door to the Beth McGeorge loft apartment to see a complete owner -occupied living space. Minutes Ad Hoc Committee on Old Town November 19, 2010 7 a.m. - City Hall Committee Members: Ron Medin (Chairman), Bryan Pope, Brad Bates, Jim Crabtree, Jude Markway, Donna Deetz, Mike Berendzen, Steve Rasmussen Staff: Ron Davenport, Janice McMillan, Melva Fast Guests: Mark Mehmert Chairman Medin called the meeting to order at 7:05 a.m. A quorum was present. Minutes from the October 29 meeting were approved. Chairman Medin opened the meeting with comments about the conference call with Ralph Rognstad the day before. A review board, a loan program, a vacancy program and the college presence in downtown was discussed. The draft list of Ad Hoc Committee Recommendations was reviewed and discussed item by item; (discussion notes are in italics after each recommendation): Construction Appeals Panel — made up of elected officials, staff and public appointees to promptly review decisions of code inspectors and other community development staff -discussed the need to clarify and have equal membership among the constituency; use this panel as a "last resort" after the issue had worked through all levels of staff,- later after issue is resolved than could be addressed as an ordinance if necessary; could be codified as a Redevelopment Authority) 2. Developer Resource Officer — designated staff person(s) assigned to assist developers in their interactions with city departments (cited as a good idea if combined with other recommendations such as #12, #8 & #6, for example; chamber role was discussed) 3. Revisions to Parking Code — revise off-street parking requirements within the densely developed areas of Old Town possibly considering developing small city - owned parking infill -(good idea for staff to develop pocket parking or reduce the parking requirements in older neighborhoods if possible, don't adhere to the modern parking code standards always which tends to require parking for maximum utilization) 4. Downtown Parking Assignments — examine whether current parking lot locations and designations optimize city resources for revitalization of Old Town(staff is currently looking at this specifically in, the Jefferson St parking facility) 5. Loft Incentives Program — provide tax abatements to building owners in Old Town to promote residential living in upper levels (look at parking and standardized condominium documents to assist owners in dividing ownership of Minutes Ad Hoc Committee on the Redevelopment of Old Town Page 2 larger mixed use buildings in the older commercial areas) 6. Developer Checklist — a single source publication outlining the development process as it interfaces with city government (good idea to be incorporated with the developer rehab officer and chamber effort) 7. Just Say "Yes" — an initiative within city government encouraging staff persons to work cooperatively with developers to find reasonable solutions to the inevitable conflicts between developer needs and the public interest (basically customer service approach for staff interaction with redevelopers) 8. Call Before You Develop — a public relations campaign encouraging developers to consult with City Hall before embarking on redevelopment or construction projects in Old Town and elsewhere (part of the effort to improve the communication between redevelopers, especially novices, and city staff,- ties in with #6&#2) 9. Dialogue with Jefferson City Schools — explore how the school district might encourage by revitalization of Old Town through participation in tax abatements and school policies regarding concentrations of low -come students in elementary schools and encourage a positive perception of the schools serving the Old Town Area (endorse an effort by the school district to improve public education and re- draw elementary school lines in a more uniform manner -school officials need to hear this message from this Ad Hoc Committee, City Council and Old Town Revitalization Company; currently the school district is undertaking a new public school strategic plan and reviewing the entire public school system) 10. Dialogue with Cole County government - explore how the school district might encourage by revitalization of Old Town through participation in tax abatements / incentive programs (continued communication from City Council and Old Town Revitalization Company supported; cooperative capital improvement projects are one way to garner support.) 11. Code Enforcement — develop an enforcement process that is firm yet reasonable and fair. Develop a communication process that impartially administers the enforcement program (geared to existing property owners; necessary to continue to improve Old Town) 12. Mentoring Program — match -up experienced and non -experienced rehab property owners within the Old Town Area. (Good idea to assist inexperienced redevelopers in gaining knowledge and confidence in their project before beginning any work; identify volunteers that would include architects, engineers and experienced developers) Minutes Ad Hoc Committee on the Redevelopment of Old Town Page 3 13. Available Properties — promote redevelopment opportunities through a web based data base of available properties within the Old Town Area. (Old Town Revitalization looking at a website; discussed the realtors participation and hesitancy about offering a site for listing of properties to include "for sale by owner", needs to be looked at closely to gain broad acceptance and cooperation.) 14. Modify Commercial Facade Program - make it available for mix -use application. Currently, a building that was originally a residence in 1900 but that has been in commercial use for over 80 years and is zoned commercial does not qualify for commercial facade program because it was initially a residence. (Discussion about including commercial mixed-use incentive and/or a `do-it-yourselfer" incentive into the existing program; after discussion it was agreed that such incentives were necessary but probably needs to be separate from existing fagade improvement program so new legislation may be implemented.) 15. Encourage Cooperation of Utility Companies - make upgrades and renovations easier for developers. Replacing "their" lead water pipes --those that connect the street meter to the main --for the water company and allowing connections before the building is ready for move in so that contractors have water to use for work; Allow overhead lines to be installed below ground, etc. (discussion about MO American Work exemption from paying for upgrades of their lines from the meter to the main recognized the long term PSC allowance not likely to be changed; Old Town Revitalization representatives have met with the local utility companies to encourage cooperation with redevelop to replace and underground lines. Ameren has a Power On initiative but does not support individuals during redevelopment unless that project has priority with Ameren) 16. Work with local business, redevelopment associations to promote development. The Eastside Association is good example where the residential committee is putting together neighborhood workdays for cleaning up residences with painting, landscaping, etc. as a group effort. (The cooperation of various neighborhood and business groups has been initiated within the past 3 months and seems to have interest in meeting quarterly and devising a community calendar; Donna Deetz is spearheading this effort.) 17. Public Relations Campaign - a coordinated public relations campaign to let folks know what is available, what can be done, and how. Have a direct mail campaign, a door to door campaign, church announcements, etc. (This effort is being led by the Old Town Revitalization Company.) At the end of the meeting the following additional items were brought forward to Minutes Ad Hoc Committee on the Redevelopment of Old Town Page 4 the Committee: - "Board up" fees, similar to Springfield's program; -Zoning overlay district that would include design standards -Janice McMillan, Mike Berendzen, Jim Crabtree were asked to meet and come up with a recommendation; -Assemblage of parcels for a larger redevelopment; -Presence of Lincoln University and Linn Tech in the downtown to bring vibrancy; -Security, dialogue with the police department to enhance the image of safety in the older neighborhoods. Chairman Medin announced that the next meeting would be December 3 at City Hall and that a draft report would be distributed prior to the meeting. Members should review and bring their comments to the next meeting. Meeting adjourned at 8:40 a.m. Minutes Ad Hoc Committee on Old Town December 3, 2010 7 a.m. - City Hall Committee Members: Ron Medin (Chairman), Brad Bates, Jim Crabtree, Jude Markway, Donna Deetz, Mike Berendzen, Councilman Bryan Pope, Councilman Eric Struemph, Councilman Dave Griffith Staff: Ron Davenport, Janice McMillan, Melva Fast Guests: Mark Mehmert Chairman Medin called the meeting to order at 7:05 a.m. A quorum was present. Minutes from the November 19 meeting were approved. Chairman Medin asked for comments about the Recommendations on Planning and Zoning Matters prepared by the subcommittee consisting of Mike Berendzen, Jim Crabtree and Janice McMillan. A sheet with 5 recommendations was distributed; see attached. Recommendation 1, to establish a Planning and Design Committee as an appeals body, had two options. Option A would be an independent commission of professionals; Option B would be a commission comprised of city staff department heads. After considerable discussion, it was decided to include Option A in the final report. It was felt that Option B would occur anyway and that there would be broader community support if an independent board was created. Recommendations 2 Et 4 which recommends the Old Town Revitalization Company pursue neighborhood plans for "unplanned" areas and establish an awards program were adopted by the Committee. The Planning Et Zoning Commission and City Council should adopt the Southside Plan prepared by Arcturis, pursue a strategic plan for the central business district (Recommendation 2) and create an overlay district for Old Town (Recommendation 4). Jim Crabtree volunteered to assist Chairman Ron Medin with the final wording for incorporation into the Final Report. The Draft Report was reviewed and some comments were made to fine tune it. Additions to the report include: some incentive or program for adaptive re -use. Melva Fast will incorporate some ideas into the report. Code Enforcement should be cited in the report -continue and encourage. Lincoln University and other institutions of higher learning should be added to the report. Existing state and federal programs that are available should be cited -TIF, CID, NID, Chapter 99, Historic Tax Credits. The idea/issue of a Festival District was discussed. Recommendations on Planning and Zoning Matters for the Old Town Area (by Mike Berendzen, Jim Crabtree, Janice McMillan) 1. Establish a Planning and Design Commission as an appeals body for non -zoning matters and adopt a formal appeals procedure (state statute prescribes zoning matters are appealed to the Board of Adjustment). • Option A. Members should be appointed from the professions of architecture, engineering, building/construction inspection, etc. The Commission would be appointed by the Mayor, and the Chairman would serve an ombudsman between City departments and development community. Decisions of the Commission would be appealable to the City Council. Professional liability insurance requirement issue? • Option B. The Commission would be comprised of specific City department heads (i.e., deputy directors from Community Development) from the fields of building/code enforcement, public works and planning. Decisions would be appealable to the City Administrator — then Council committee (Administration or Public Works) — then City Council. 2. Pursue neighborhood plans for "unplanned" areas... weave applicable solutions from the Chamber's Strategic Plan into area plans. Pursue rezoning of areas, and other solutions, as recommended by the subarea and neighborhood plans. • Adopt the plan for the Southside prepared by Arcturis... by the Old Town Corporation, Planning & Zoning Commission and City Council. • Pursue a strategic plan for the central business district to help create a vision for sustainable improvements, including types of commercial uses, residential conversions/areas for residential development; historic preservation, design standards, parking solutions, activities, marketing. 3. Create overlay districts and subdistricts, as applicable, within Old Town to address specific issues, unique challenges and provide opportunities for solutions in areas of parking, design standards, historic preservation. 4. Establish an award program within the Old Town Corporation to recognize and uplift good examples of design, execution and maintenance in areas of rehabilitation, renovation, adaptive reuse, and infill/new construction. 5. Perfect the communication and cooperation between the Old Town Corporation and City departments to capitalize on professional expertise and create a framework for active problem - solving, thus leading to a shared vision for Old Town. • Appoint deputy directors within the Department of Community Development as advisors to the Old Town Corporation. INAL REP(, RT AD HOC COMMITTEE- O REVITALIZATION OF OLD TOWN APRIL 2008 Sky Vic-ty of "Old Town " ,Jefferson City, 310 PRIORITIES AND RECOMMENDATIONS FROM THE AD HOC COMMITTEE ON REVITALIZATION OF OLD TOWN Foundational Priorities (page 4) 1. Old Town Revitalization Action Center 2. Old Town Development Corporation 3. Target Areas of Old Town for City and Financial Resources Residential Investment Priorities (page 7) 4. Down Payment Assistance for Residential Purchases in Targeted Areas of Old Town 5. Bank Loans for Residential Purchases in Targeted Areas of Old Town 6. Financial Assistance for Conversion from Multi -Unit to Low Density Rentals 7. Incentives for Neighborhood Improvement Districts Commercial Investment Priorities (page 10) 8. Incentives for Community Improvement Districts 9. Bank Loans for Commercial Development 10. Tax Increment Financing Districts Other Recommendations (page 12) 11. Mixed-use Rezoning 12. Vacancy Registration for Properties in C-2 Zoning 13. New Job Creation Incentive 14. Building Codes Specific to Old Town REPORT OF THE AD HOC COMMITTEE ON REVITALIZATION OF OLD TOWN Introduction The Ad Hoc Committee on Revitalization of Old Town' was created by vote of the City Council on December 3, 2007, and its membersZ were appointed by Mayor John Landwehr on December 17, 2007. The Ad Hoc Committee was charged with investigating ways that the City of Jefferson might foster investment and revitalization in the Old Town area of Jefferson City, and to report its findings to the meeting of the City Council on April 7, 2008. Investment and revitalization contemplates more than the restoration of aging buildings and infrastructure. The Ad Hoc Committee's overarching objective was to identify initiatives that together might serve as an economic stimulus package for Old Town and, ultimately, the entire City of Jefferson. Support of "attractive redevelopment in central neighborhoods" is one of the seven objectives identified by Market Street Services, Inc. in its Economic Development Strategic Plan submitted to the Jefferson City Area Chamber of Commerce on October 17, 2006. At the same time, the Ad Hoc Committee recognized that the City of Jefferson has limited resources and sought to leverage those resources by focusing on mechanisms that could either be coupled with existing programs or offered in partnership with other funding sources. The Ad Hoc Committee met ten times in its three months of existence with most members The Old Town area was officially designated by a vote of the City Council in the spring of 2007 and is roughly described as the area within lines running from Dix Road on the west to Stadium Boulevard on the south to Moreau Drive on the east and then back to the Missouri River on the north. 2 The individuals appointed to serve on the Ad Hoc Committee were Brian Crane, Phil Freeman, Cindy Layton, Ron Medin, Mark Mehmert, Alan Mudd, Bob Robuck, and Jim Wisch. City Administrator Steve Rasmussen, Assistant City Administrator Melva Fast, and Finance Director Steve Schlueter have also been active participants in the Ad Hoc Committee's work. 3 The mission statement adopted by the Ad Hoc Committee at its organizational meeting states: "The Ad Hoc Committee on Revitalization of Old Town shall explore, gather input from constituent interests, identify and recommend financial incentives that the City of Jefferson, alone or in combination with other funding sources, might provide to initiate, sustain and augment investment and revitalization in the Old Town sector of our community." in attendance at each meeting. Even though the Ad Hoc Committee included a banker, a realtor, a representative of the Jefferson City Chamber of Commerce, a commercial developer, a representative of a local neighborhood associations, and three council persons, it first sought to broaden the input it received by spending a little over two months meeting with people who had either invested in the Old Town area or had special expertise in spurring economic activity.4 The information -gathering culminated in a public hearing on February 28, 2008, in which over twenty residents participated.5 The Ad Hoc Committee then met four times in March to discuss what it had heard and to arrive at a consensus of recommended actions in response to its findings. This report identifies ten priorities for revitalization of Old Town and provides both the Ad Hoc Committee's rationale for the identified priorities as well as an explanation of how the initiatives might interact to promote revitalization in Old Town. In addition, the Ad Hoc Committee submits four recommendations for further study and consideration. These recommendations involve items not strictly within the scope of the Ad Hoc Committee's mission statement but the Ad Hoc Committee nonetheless believes they could encourage investment in Old Town and merit further exploration. 4 Those accepting the invitation to visit with the Ad Hoc Committee included Judge Jon Beetem, Randy Schen, Darryl Hubble, Juanita Donehue, Ron Dawson, Reggie Walker, and Mark Mathers. Foundational Priorities The revitalization of Old Town breaks down into two distinct challenges - promoting residential investment and spurring commercial redevelopment. These challenges intersect at some points where they can be commonly addressed, but generally require separate responses. However, any sustained efforts in revitalizing Old Town first requires a foundation that can support revitalization independent of the transitory interests of elected officials or the piecemeal efforts of city staff already consumed in a host of equally pressing matters. Both residential revitalization and commercial development in Old Town will be advanced by the creation of two entities which are the Ad Hoc Committee's top two priorities. #I OLD TOWN REVITALIZATION ACTION CENTER Nearly everyone who appeared before the Ad Hoc Committee lamented the lack of a clearinghouse where those interested in investing in or rehabilitating structures could go for guidance concerning potential sites and available financial assistance. The Ad Hoc Committee strongly recommends the creation of such a clearinghouse that would not only provide information but also serve as a counselor and guide through the matrix of available resources.' The precise organizational outline of the Old Town Revitalization Action Center must necessarily be left to others, but it should initially be headquartered at the Jefferson City Area Chamber of Commerce. A single point of entry for interested persons is desirable — even though some might be interested in commercial development while others might be inquiring about residential opportunities (or both commercial and residential opportunities). It should be as simple as possible to contact the Old Town Revitalization Action Center; maintaining separate portals to access residential and commercial assistance would needlessly complicate the process. However, it is anticipated that after the initial contact at the Jefferson City Area Chamber of Commerce the inquiries involving residential revitalization would be forwarded to the City of Jefferson while Chamber personnel would handle inquiries related to commercial revitalization. With the possible exception of some reallocation of staff resources and incidental overhead expenses at both the Jefferson City Area Chamber of Commerce and the City of Jefferson, the Old Town Revitalization Action Center would not require the appropriation of any additional funds for its operations.' 5 Articles by reporter Michelle Brooks appearing in March 1, 2008, edition of the News Tribune that summarize the public meeting are included in Addendum #1. 6 Lists of financial resources presently available to qualifying projects appear on Addendum #2. 7 A project that neatly coincides with this priority is already underway. The City of Jefferson is already working on a historic preservation manual funded by a state grant that will list available funding sources and programs. 4 #2 OLD TOWN DEVELOPMENT CORPORATION The informal restructuring of resources at the Jefferson City Area Chamber of Commerce and the City of Jefferson City to create the Old Town Revitalization Center is not sufficient to meet the need for sustained revitalization efforts in Old Town. A non-profit corporation should be created with the sole focus of promoting commercial and residential revitalization in Old Town.8 The Old Town Development Corporation could be the vehicle for carrying forward revitalization on several fronts. Among them: a. Serving as a conduit for state and federal funding for Old Town projects. b. Serving as a repository for the commercial historic fagade easements that would make property owners eligible for federal tax deductions (20 U.S.C. Section 170 h) if they restore their buildings to their original facades.9 C. Serving as an umbrella organization to help guide and coordinate the activities of a variety of business and neighborhood groups already at work within Old Town. d. As a tax-exempt organization, the Old Town Development Corporation could independently raise funds to support revitalization efforts in Old Town and could accept donations of real estate. e. As it became more financially established, the Old Town Development Corporation could purchase, develop and sell properties to advance revitalization in Old Town. f. At some point the Old Town Development Corporation would assume the operations of and be responsible for the Old Town Revitalization Action Center. Most immediately, a board of directors appointed by the Mayor with the approval of the City Council for an Old Town Development Corporation would bring the City of Jefferson's imprimatur to revitalization efforts in Old Town. The directors' first task would be recommending target areas of Old Town where the City of Jefferson's resources would be best be focused (to be discussed more fully below as Priority #3). Like the previous priority, creation of the Old Town Development Corporation would not require any additional outlay of city funds. Although it would initially require the administrative support of city staff, it would be an independent entity committed to the revitalization of Old Town. ° Concurrently with the Ad Hoc Committee's work, a consultant working with the Southside Business League separately concluded that a redevelopment corporation is a necessary tool for Old Town. 9 The tax deductions come from the federal government but the "easement" assuring that the original fagade will be maintained after it is restored necessarily must be given to a local organization that can monitor the property owner's observance of the easement. Presently, no local organization fulfills that role in Jefferson City. 5 #3 TARGET AREAS OF OLD TOWN FOR CITY AND FINANCIAL RESOURCES The Old Town area of Jefferson City is large and the resources available for its revitalization are limited. Rather than spreading the available resources so thinly that results are not readily discernible, the Ad Hoc Committee believes that targeting areas and/or properties within Old Town for focused support will breed the kind of success that will lead to further successes beyond the targeted areas throughout the rest of Old Town and the City of Jefferson. The third foundational priority essential to laying the groundwork for Old Town's revitalization efforts is the designation of a handful of designated target areas that would be the focal points of financial incentives and support from the City of Jefferson. The target areas would be designated by the board of directors of the Old Town Redevelopment Corporation. Criteria should include not only the needs of a particular area but also the extent to which a neighborhood engages in "self-help" by undertaking its own revitalization with established plans independent of governmental assistance. Like the first two foundational priorities for revitalization of Old Town, the designation of target areas would not require any outlay of city funds. However, designation as targeted areas would have financial consequences for the areas so designated. A target area would be given some deference when city officials divide up the available resources for public infrastructure improvements and code enforcement. A target area would also be eligible for a number of financial incentives hereinafter described. 0 Residential Investment Priorities The prototypical residential investor that the Ad Hoc Committee hopes to attract to Old Town is a young person with a stable income who is probably unable to afford a comparable home in other areas of town.10 The following programs, alone or in combination with other incentives, would allow homebuyers in a designated target area to purchase houses of a size and quality that they could not otherwise afford. In return, Old Town would gain homeowners interested in improving and preserving their homes who would stabilize the area and improve property values throughout Old Town. The ultimate returns on the proposed investments would be an improved tax base for the City of Jefferson and reduced city expenditures for police, fire, and code enforcement in the former "problem areas" of Old Town. #4 DOWNPAYMENT ASSISTANCE FOR RESIDENTIAL PURCHASES IN TARGETED AREAS OF OLD TOWN This initiative would provide down payment assistance to homebuyers making purchases in a targeted area of Old Town. A qualifying homebuyer must purchase a house in a target area built before 1951, must live in the home for five years after purchase, and must bring the house into compliance with the city codes. The homeowner's obligations would be secured by a mortgage held by the City of Jefferson that would be forgiven incrementally each year until it was completely forgiven after five years. This initiative would be capped with a given number of homeowners receiving down payment assistance per year and would automatically expire after three years unless extended by the City Council. #5 BANK LOANS FOR RESIDENTIAL PURCHASES IN TARGETED AREAS OF OLD TOWN A would-be homeowner qualifying for down payment assistance from the City of Jefferson would automatically be considered for a bank loan with more favorable terms than are otherwise available. The loan would be made by a participating lender chosen by the borrower. The degree to which local banks participate as well as terms which they would offer to borrowers would be 10 There is no requirement that the persons purchasing house in Old Town be young or that it be their first home purchase. The prototype merely reflects the Ad Hoc Committee's expectation of who would likely be interested. left to the marketplace, but in each case a bank loan under this initiative would be linked to the down payment assistance program. A potential homebuyer that did not qualify for down payment assistance from the City of Jefferson would not be eligible for a bank loan under this program. Because the loan program would be linked to the down payment assistance initiative, it also would be limited to a give number of homeowners each year and would automatically expire after three years unless extended by the City Council. #6 FINANCIAL ASSISTANCE FOR CONVERSION FROM MULTI -UNIT RENTALS TO LOW DENSITY RENTALS It has become almost an article of faith among policymakers that the goal for Old Town should be owner -occupied housing and that most problems of code enforcement and substandard housing can be laid at the doorsteps of landlords trying to squeeze profits out of structures never intended to be multi -unit rentals. At least one person" appearing before the Ad Hoc Committee challenged those assumptions and suggested that rental housing will inevitably be part of mix of residential living in Old Town. The Ad Hoc Committee, too, believes it is unrealistic to expect that rental housing will completely disappear from Old Town. Nor is it desirable. Responsible landlords and responsible tenants add to the efforts to revitalize Old Town. However, it should be a priority to encourage landlords to reduce the number of tenants living in what were originally built as single-family homes. Financial assistance should be made available to landlords in targeted areas who will commit to reducing the number of rental units in houses ill-equipped to accommodate such occupancy rates. #7 INCENTIVES FOR NEIGHBORHOOD IMPROVEMENT DISTRICTS Old Town developer Ron Dawson suggested to the Ad Hoc Committee that public funds applied to target areas be directed primarily to public improvements rather than to improvement of private properties. Mr. Dawson reasoned that the increased market values achieved by improving a private property might be realized by a single owner who might quickly sell the property — taking the profit and city's investment out of Old Town. In contrast, public improvements like sidewalks or street lighting also improve neighborhoods but remain even after turnover in private ownership of property. Mr. Dawson's suggestion should be taken a step further by encouraging mechanisms for self-help already available to neighborhoods. Rather than arbitrarily funding public improvements in selected areas, the City of Jefferson should reward those areas demonstrating a commitment to contributing funds for own their public improvements. Two programs already authorized by state statutes are available to neighborhoods wishing to engage in self-help — Neighborhood Improvement Districts in residential neighborhoods and Community Improvement Districts for commercial areas (to be discussed more fully below). Both of these special benefit districts allow 11 Judge Jon Beetem 8 neighbors to assess or tax themselves for common improvements and services within their districts. This self-help should be encouraged with an incentive offered by the City of Jefferson in which city property taxes collected within an area which has created a Neighborhood Improvement District would be earmarked for public improvements in that same area for a given number of years following creation of the Neighborhood Improvement District. The City of Jefferson would match the money spent by the Neighborhood Improvement District dollar for dollar but only to the extent of the city property taxes collected within the district. The Neighborhood Improvement District could not sit on the money indefinitely; after a prescribed number of years the earmarked property taxes collected within the Neighborhood Improvement District would no longer be restricted and would be available for use by the City of Jefferson in its sole discretion. Commercial Investment Priorities Commercial development which might seem out of place in outlying residential neighborhoods is desirable in most areas of Old Town. Part of the appeal of Old Town for would-be residents is the ready access to shopping, entertainment, schools and churches within walking distance. It is a symbiotic relationship — retail establishments require nearby residents for regular patronage while residents require establishments to patronize. Consequently, the Ad Hoc Committee suggests the following priorities to foster commercial development. #8 INCENTIVES FOR COMMUNITY IMPROVEMENT DISTRICTS A mechanism similar to that discussed immediately above for Neighborhood Improvement Districts should also be available to encourage the creation of Community Improvement Districts for commercial neighborhoods. Like Neighborhood Improvement Districts, the mechanism permitting creation of Community Improvement Districts already exists. In fact, one area has already has already formed a Community Improvement District 12 and its members are taxing themselves to pay for public improvements in their area. The Ad Hoc Committee was told at its public meeting on February 28, 2008, that another group of property owners situated along Capitol Avenue is also interested in the concept. 13 Incentives to create Community Improvement Districts would again take the form of earmarked tax dollars being applied on a matching funds basis to public improvements within a target area for a limited number of years following creation of the Community Improvement District. This approach allows a "leveraging" of public funds far beyond what they might otherwise achieve if merely appropriated to fully fund public improvements within the target areas. #9 LOAN PROGRAM FOR COMMERCIAL DEVELOPMENT For many years the State of Missouri has promoted economic development in targeted areas with a program administered by the State Treasurer's office in which state funds deposited with a participating bank earn a reduced rate of interest and, in turn, the bank lends money at a reduced rate of interest to a borrower engaged in the activity the State of Missouri wants to encourage. The deposit made by the State of Missouri is equal to the amount of the loan. Put another way, the state deposit earning a reducing rate of interest "buys down" the interest rate on the loan to the borrower. There is no guarantee of the loan by the State of Missouri. No state 12 Southside Munichburg Community Improvement District 13 Comments of Steve Veile of the newly -formed Capitol Avenue Landmark League. 10 funds are at risk. The state cost is the reduction of interest it would have otherwise received for a deposit accruing interest at market rates. The model of the state program can be adopted and modified by the City of Jefferson to spur commercial development in Old Town. Rather than a direct outlay of city funds to commercial developers, the City of Jefferson could leverage some of its available resources to encourage local banks to make loans for commercial development within Old Town on more favorable terms than would otherwise be available for such commercial projects. The City of Jefferson's only involvement would be to make a deposit in the amount of the loan which would accrue interest at something less than the market rate. The city money would be deposited with the participating lender for five years or for the term of the loan, whichever is shorter. The City of Jefferson's expenditure on the program would be limited to the difference between the lower interest rate its deposits accrue in exchange for the more favorable bank loans and the interest rate those deposits would have otherwise earned. The number of loans and consequently the number of low interest deposits should be capped so that the reduced interest income for the City of Jefferson would not exceed a given amount in any fiscal year. #10 TAX INCREMENT FINANCING DISTRICTS Tax increment financing (TIF) can be controversial and has not been readily accepted by the local community. But TIF has its place and Old Town might just be it. TIF is a tool to use future gains in taxes to finance the current improvements that will generate those gains. When a public project is carried out, there is an increase in the value of surrounding real estate and often further investment and development by the private sector. The increased site value and investment create more taxable property, which increases tax revenues. The increased tax revenues are the "tax increment" that is dedicated to finance the debt issued to pay the initial public project. Old Town appears to be just the sort of venue for which TIF is intended and could allow funding for public projects that would not otherwise occur. It should be noted that while TIF districts are often based on property tax revenues, it is also possible to use increased sales tax revenues to repay TIF financing or to apply both increased property tax and sales tax revenues to repayment. Presently, TIF authority resides with the Housing Authority of Jefferson which has used it sparingly. This is an under-utilized tool that could play a significant role in the revitalization of Old Town. 11 Other Recommendations Inevitably the discussions of how best to stimulate economic development in Old Town led to subjects not strictly within the purview of the Ad Hoc Committee's mission statement. While the Ad Hoc Committee does not believe it has authority to identify the following items as priorities, it nonetheless considers them to be potentially valuable tools and worthy of further consideration. #11 MIXED USED REZONING Development over nearly two centuries in Old Town has been a haphazard affair with commercial, residential, entertainment, and public properties all existing within a stone's throw of one another. That is not necessarily undesirable and might even be viewed as among the potential attractions of Old Town. Still, current zoning ordinances are ill-suited to assuring that property owners in mixed-use areas can co -exist and prosper together. City planning officials should re-evaluate all areas within Old Town currently zoned C-2 to determine whether they might better be served with a new zoning category called "Mixed Use Zoning". Mixed Use Zoning would strive to accommodate residential, commercial and entertainment components. It would allow for the preservation of historic buildings, new construction compatible with existing buildings, and on -street and shared off-street parking where possible. Further conversion of older homes into multi -unit rentals would be discouraged by minimum living space standards and by requirements for off-street parking. #12 VACANCY REGISTRATION A disturbing trend within Old Town has been the willingness of some commercial property owners to allow their buildings to sit idle as they wait for the rising tide of economic development to improve their property values. This has a number of negative results including increased oversight by police, fire and code enforcement and a general "dragging down" of the neighborhoods where these properties sit vacant. Don Trabue appeared before the public meeting on February 28, 2008, and described another community's "use it or lose it" approach towards vacant properties where property owners were given the option of either improving their properties or risking condemnation. The Ad Hoc Committee would not suggest a similar approach, but believes a requirement that vacant properties within C-2 zoned areas of Old Town be registered should be studied further. An owner of a building might be required to register if the property sits vacant for more than six months. Registration could include completion of a vacant building form, a plan to maintain the building's exterior, and registration fee. The registration would be renewed annually 12 for as long as the building remained vacant. Registration would not only discourage vacant buildings and recoup some of the city's administrative expenses in dealing with them, it would also provide a registry of potentially available properties to anyone interested in investing in Old Town that could be maintained at the Old Town Revitalization Action Center. #13 NEW JOB CREATION INCENTIVE The Jefferson City Area Chamber of Commerce is not an agency of the City of Jefferson and has its own priorities and obligations to its membership. However, the local chamber receives financial support from city and county governments to foster economic development. Moreover, a key objective of the Economic Development Strategic Plan prepared by Market Street Services, Inc. for the Jefferson City Area Chamber of Commerce was to "foster greater entrepreneurial spirit". In furtherance of that objective, the Ad Hoc Committee encourages the Jefferson City Area Chamber of Commerce to consider incentives it might provide to businesses creating new jobs and retail opportunities within the Old Town. #14 BUILDING CODES SPECIFIC TO OLD TOWN Renovation of older structures built before the advent of modern building codes can be complicated by strict adherence to such standards. The Ad Hoc Committee is informed that strict compliance may be waived on a case by case basis by code enforcement, but suggests that a less arbitrary and more comprehensive approach might be achieved by an alternative building code within Old Town. Uniform codes applicable to older structures have promulgated by nationally - recognized authorities. While the Ad Hoc Committee does not propose anything that would undermine the safety and soundness of structures in Old Town, the possibility that those goals might be achieved with less expense by property owners is worthy of further investigation. 13 Conclusion Revitalization of Old Town is a serious matter and is a key to the economic prosperity of the entire community. As noted in the Economic Development Strategic Plan by Market Street Services, Inc. dated October 17, 2006, "[a] downtown area is the heart and soul of a community — it can embody the overall characteristics of a city..... A thriving downtown requires a public and private commitment to developing a dynamic area for residents, visitors and businesses." The Ad Hoc Committee appreciated the importance of the task to which it was assigned and spent many hours working to arrive at the priorities and recommendations discussed in this report. At the same time, the Ad Hoc Committee is mindful that its work is advisory only. It has no authority or responsibility for setting policy, enacting legislation, or appropriating public funds. These findings and recommendations provide a framework for addressing issues long neglected so that Old Town might reclaim its place as a vital and vibrant center of our community. It is now incumbent upon the City of Jefferson to act. This report should be referred to the City Council's Administration Committee for further study and implementation of the priorities identified herein. 14 ADDENDUM #1 Entrepreneurs look for guidance with Old Town efforts By Michelle Brooks mbrooks@newstribune.com At the south end of Old Munichburg, a typical, German -built brick building stood vacant for nearly 30 years. Then, young entrepreneur Gloria Baker came along with the dream of opening her own business. She had the client base and the Jefferson Street building wasn't contributing to the tax rolls. i ne 1 nerapeutic I ouch Wellness Center on Jefferson Street is a historic building that has just been renovated and put to But problems arose when she a new use. (Stephen Brooks/News Tribune photo) sought funding for the project, when city codes based on modern construction hampered the rehabilitation of the older structure, and when access to her newly -opened business was blocked by construction crews repairing the Jefferson Street bridge. Her business is open. But with these setbacks, Baker is concerned whether she will remain in business, much less complete the building's rehabilitation. "I think I've done a great service and added economic development," Baker told the city's ad hoc committee on Old Town revitalization Thursday. "But I didn't know where to go (for help)." Baker's story is not isolated. Others would like to pursue their dream to renovate an older building but don't know where to begin. That is the dilemma the Old Town revitalization committee hopes to address. Baker and others shared their stories as part of the committee's public hearing Thursday. Committee wants to promote revitalization in the area By Michelle Brooks mbrooks@newstribune.com More than 20 property owners within the Old Town boundaries attended a public forum hosted Thursday by the city's Ad Hoc Committee on Old Town Revitalization. The committee is charged with investigating and making recommendations to the City Council about pursuits that would promote investment and revitalization of the Old Town area, from Dix Road to Stadium Boulevard to Moreau Drive and back to the Missouri River. Those who spoke said they appreciated the city taking an interest in the older neighborhoods and the problems they face. The recurrent theme seemed to be infrastructure improvements. From East Capitol Avenue to Ash Street to Old Munichburg, sidewalks, curbs, gutters and lighting seem to be essential to provide a sense of safety and pride. Once that is improved, those who spoke agreed that property owners probably would take a greater interest in their own properties. The recently -formed Capitol Avenue Landmark League believes the extension of the downtown's historic lighting and sidewalk improvements will be essential to maintaining and improving their historic area. That group is interested in learning more about forming a community development district to place an additional tax on properties in the area for the purpose of funding those improvements, said member Steve Veile. "East Capitol - most people can agree - is a pretty historic area," Veile said. "We'd like to see that maintained." A companion issue to the infrastructure improvement would be increased code enforcement. Other troubles include low-income housing, apathetic landlords or renters, high vacancy rates, a perception of crime, fear of assessed valuation exceeding the investment. Suggestions for the committee's consideration included: * Targeting specific neighborhoods for infrastructure improvements. * Offering specific help to those wanting to open small businesses in the older neighborhoods. * Market the older neighborhoods to potential homeowners in their 20s and 30s. * Develop an incentive program for city staff to renovate and live in the older neighborhoods. * Make better use of the city ordinances for neighborhood overlay districts and historic conservation districts. * Better public education about the development progress in the east side and on the Missouri State Penitentiary site. * Establish an aggressive plan for property owners to either fix, sell or demolish deteriorating properties. * Modify city codes for repairs and renovations to older homes to alleviate unnecessary expenses in retrofitting modern standards. * Maximize use of Channel )CTV channel 3. * Explore funding streams available through the Housing and Urban Development for cultural institutions. * Enlist the help of community service organizations like the Boy Scouts to volunteer to help paint deteriorating front porches. * Encourage the conversion of multi -family dwellings back to single family. The committee is charged with investigating and making recommendations to the City Council pursuits that would promote investment and revitalization of the Old Town area, roughly Dix Road to Stadium to Moreau and back to the Missouri River. Baker's plight added validity to the committee's purpose, said committeeman Alan Mudd. "We need to know this kind of information, what's keeping people for doing the work," Mudd said. "We applaud what you've done. Hopefully, we can come up with things that could help you and others." Chairman Ron Medin noted a top consideration for the committee has been a clearinghouse of information, one location where potential developers of older properties may go to find out what resources are available. The city recently received a State Historic Preservation grant, allowing it to create a how-to manual for historic rehabilitation with local success stories and contact information for tax credits, other funding streams and materials. "The problem is each problem is unique," said committeeman Mark Mehmert. `There's no one -size -fits -all solutions." ADDENDUM #2 EXISTING FINANCIAL RESOURCES AVAILABLE TO QUALIFYING PROJECTS Commercial Projects - 20% Federal program for certified historic structures - 10% Federal program non -certified, pre -1936 structures; - 25% State program for certified historic structures; - $10,000 Federal & State disabled access credits; - Facade easement for charitable contribution; - Tax Reimbursement Program for Commercial facades w/$25,000 low interest loans from banks; Free parking for downtown residents. Residential Projects - 20% Federal program for certified historic structures - 10% Federal program non -certified, pre -1936 structures; - 25% State program for certified historic structures; - $5,000 Code Deficiency Program-LNH; - Five-year Tax Reimbursement Program for vacant/rentals converted to owner -occupied; - UMB Low Interest Loans; _ - Free parking for downtown residents. - Neighborhood Preservation Tax Credits - Facade Program encourages upper floor - Overlay districts Neighborhood Watch/Community Action Team