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  • Motion: BOARDMEMBER FLAKE MOVED TO APPROVE THE CONSENT ITEM AS PRESENTED. COUNCILMEMBER WELSH SECONDED THE MOTION. CHAIR FULLMER, BOARDMEMBERS FLAKE, RASMUSSEN, AND WELSH VOTED YES. BOARDMEMBER SIFUENTES WAS ABSENT. THE MOTION CARRIED WITH ONE ABSENT.    3.      BUSINESS ITEMS 3.1  Public hearing – Extending the Life of the RDA (Resolution U2023-08) City Manager Ezra Nair will present a request to extend the collection period for certain portions of the Geneva Urban Renewal Area. The RDA Board will act to adopt (or deny) this request by resolution.   Chair Fullmer called for a motion to open the public hearing.
  • Motion: BOARDMEMBER FLAKE MOVED TO OPEN THE PUBLIC HEARING AT 8:16 PM. BOARDMEMBER RASMUSSEN SECONDED THE MOTION. CHAIR FULLMER, BOARDMEMBERS FLAKE, RASMUSSEN, AND WELSH VOTED YES. BOARDMEMBER SIFUENTES WAS ABSENT. THE MOTION CARRIED WITH ONE ABSENT.
  • Mr. Nair gave a brief presentation on the RDA and the reason for the requested extension.   Chair Fullmer called for public comments.
  • Resident Jordan Christensen, living in The Preserves subdivision, asked what the financial position would be if the board did not take action tonight. Mr. Nair explained that they would be less equipped to pay back the current debt.   Chair Fullmer called for further public comments. Hearing none, she called for a motion to close the public hearing.
  • Motion: BOARDMEMBER FLAKE MOVED TO CLOSE THE PUBLIC HEARING AT 8:25 PM. BOARDMEMBER RASMUSSEN SECONDED THE MOTION. CHAIR FULLMER, BOARDMEMBERS FLAKE, RASMUSSEN, AND WELSH VOTED YES. BOARDMEMBER SIFUENTES WAS ABSENT. THE MOTION CARRIED WITH ONE ABSENT.   Chair Fullmer called for comments from the board or a motion.
  • Motion: BOARDMEMBER FLAKE MOVED THAT THE RDA APPROVE AND ADOPT RESOLUTION U2023-08 TO EXTEND THE LIFE OF THE RDA IN THE MAPPED AREAS, ALL REMAINING UNTRIGGERED. BOARDMEMBER RASMUSSEN SECONDED THE MOTION. ROLL CALL WENT AS FOLLOWS: CHAIR FULLMER, BOARDMEMBERS FLAKE, RASMUSSEN, AND WELSH VOTED YES. BOARDMEMBER SIFUENTES WAS ABSENT. THE MOTION CARRIED WITH ONE ABSENT. 3.2  Public hearing – Amending the Vineyard RDA Fiscal Year 2023 – 2024 Budget Amendment #1 (Resolution U2023-09) Finance Director David Mortensen will present amendments to the Fiscal Year 2023-2024 RDA budget. The RDA Board will act to adopt (or deny) this request by resolution.   Chair Fullmer called for a motion to open the public hearing.
  • Motion: BOARDMEMBER RASMUSSEN MOVED TO OPEN THE PUBLIC HEARING AT 8:26 PM. BOARDMEMBER WELSH SECONDED THE MOTION. CHAIR FULLMER, BOARDMEMBERS FLAKE, RASMUSSEN, AND WELSH VOTED YES. BOARDMEMBER SIFUENTES WAS ABSENT. THE MOTION CARRIED WITH ONE ABSENT.
  • Finance Director David Mortensen gave a brief overview of the budget amendments. Chair Fullmer called for public comments. Hearing none, she called for a motion to close the public hearing.
  • Motion: BOARDMEMBER RASMUSSEN MOVED TO CLOSE THE PUBLIC HEARING AT 8:27 PM. BOARDMEMBER WELSH SECONDED THE MOTION. CHAIR FULLMER, BOARDMEMBERS FLAKE, RASMUSSEN, AND WELSH VOTED YES. BOARDMEMBER SIFUENTES WAS ABSENT. THE MOTION CARRIED WITH ONE ABSENT.
  • Motion: CHAIR FULLMER MOVED TO CONTINUE THIS ITEM TO NOVEMBER 8, 2023 MEETING. BOARDMEMBER RASMUSSEN SECONDED THE MOTION. CHAIR FULLMER, BOARDMEMBERS FLAKE, RASMUSSEN, AND WELSH VOTED YES. BOARDMEMBER SIFUENTES WAS ABSENT. THE MOTION CARRIED WITH ONE ABSENT.  4.      ADJOURNMENTChair Fullmer called for a motion to adjourn the meeting.
  • Motion: BOARDMEMBER WELSH MOVED TO ADJOURN THE MEETING AT 8:27 PM. BOARDMEMBER RASMUSSEN SECONDED THE MOTION. CHAIR FULLMER, BOARDMEMBERS FLAKE, RASMUSSEN, AND WELSH VOTED YES. BOARDMEMBER SIFUENTES WAS ABSENT. THE MOTION CARRIED WITH ONE ABSENT.     MINUTES APPROVED ON:    November 8, 2023                                                                      CERTIFIED CORRECT BY:   Pamela Spencer, CIty Recorder
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Transcript

Hey, we're rolling. 00:00:00
Alright. 00:00:03
Come here. 00:00:06
I am going to now start our Redevelopment Agency board meeting. The time is 8/16. It is October 25th, 2023. I need a motion to 00:00:10
approve the minutes. 00:00:16
Madam Mayor, I move. We approve and send items. Yes. Second. First by tie. Second by Christie. All in favor? Aye. All right. We're 00:00:22
going to go into a public hearing on extending the life of the RDA. I need a motion to go into a public hearing. 00:00:29
Thank you, guys. Second, second by Amber, all in favor, aye. All right, Ezra. OK. Welcome back, everybody. We had this item on the 00:00:36
agenda for last week and so I have my presentation again for this week. This is a similar item where we are extending the life of 00:00:43
the RDA on certain parcels within the RDA. This will actually complete the extension for all of the untriggered parcels within the 00:00:51
RDA. So we split it up to do the downtown Area 1st and now we're doing just the rest of the. 00:00:58
Parcels throughout the RDA South of 800 N, so I'll give a more abbreviated version this time, but I think it's an important 00:01:06
concept that our residents understand because of how important the RDA is for the city. 00:01:12
So once again, I'll go through the background, how tax income works, notable projects, how it works with our property taxes. I'll 00:01:17
give an example there as well and then talk about what area this extends as well. 00:01:24
So a little background on the RDA. The Geneva urban renewal area was created in 2010. So this is back before all the time on the 00:01:31
Council. 00:01:35
The purpose of this area was to redevelop the old steel site. So steel mill was out there on the Geneva steel site and relocated 00:01:42
to China. They actually took the steel plant and they took it over to China and started their operations there. So it left a 00:01:48
significant blighted parcel where cleanup was needed and additional infrastructure was needed to be able to develop that area to 00:01:55
help accommodate with the growth happening in Utah County due to the high amount of children that we have here and also the the 00:02:01
interest in. 00:02:08
Other. 00:02:15
Other places moving here? 00:02:16
This area is being redeveloped to help support that growth that we're experiencing here. 00:02:18
So tax increment financing is the main tool that the RDA uses to fund these projects. So essentially. 00:02:25
Tax increment financing helps you finance projects based on the future growth of an area. 00:02:33
So when you look at an old blighted area, there's no potential for development, there's no potential for property taxes to grow on 00:02:39
there. And So what happens is a bunch of the tax collecting agencies, so in this case, the school district, our water Conservancy 00:02:44
district. 00:02:49
Our city, Our county. 00:02:55
And our special service districts, they all got together and decided, you know what, it's better for this property to be developed 00:02:57
for, for our benefit and to help with this growth and for it to sit as vacant pollutant land and so. 00:03:03
All of this tax increment that's generated off the site helps to grow and develop that blighted area. 00:03:10
And parks, trails are overpass roads. Different different infrastructure projects throughout throughout the throughout the city. 00:03:49
So how this works with property taxes is if you live in Utah County, you've seen this chart on your property tax bill or whoever 00:03:57
pays your property taxes have seen it. That shows the breakdown of all the different taxing agencies and how much property tax 00:04:03
they they collect on your parcel. This is. 00:04:08
A property tax statement for medium sized home for vineyard within Vineyard. And so roughly you're seeing a $2600 of total 00:04:15
assessed taxes for the 2022 year. So we're going to take this example and do a little bit of rounding to show what happens on an 00:04:23
untriggered parcel since we're talking about extending the life of the RDA when property taxes when a parcel is triggered, then 00:04:31
the agency has 25 years to collect the tax increment on that, on that. 00:04:38
Property tax. So here we're assuming that this house was built on a blighted area with zero growth, so their base value for 00:04:47
property taxes is 0. And now the incremental value for the value above that base value would be $3000 in total annual taxes. And 00:04:54
you'll see here roughly the school district would collect 1800 of that, the city 850, the county 250 and the special districts 150 00:05:01
for a total annual tax bill for that home of $3000. 00:05:08
And that would result in $850 going to the benefit of Vineyard. 00:05:16
Alternatively, when we have a triggered parcel. 00:05:22
All the taxes are the same, so you'll see School District tax 1800, City tax 850, County tax 250, and the Special District tax 150 00:05:26
as well for that same total annual tax bill. But. 00:05:32
The triggered amount is 75% of all of those agencies. 00:05:38
For all those agencies have agreed to pay 75% of the taxes that they would collect to the RDA. And they did that because if the 00:05:44
school district gets 25% of developed property, that's way more than 100% of undeveloped property where you have $0.00 of value. 00:05:51
And so this actually benefits Vineyard greatly because the Vineyard RDA now gets jurisdiction over $2250 of that tax bill to help 00:05:58
with some of these big infrastructure projects. 00:06:05
As many of you know, Vineyard was a very small town, 200 residents, not too long ago. And all of the infrastructure, the roads, 00:06:13
the businesses, everything that's been built here would never have been able to be paid for by that small group of residents. And 00:06:19
they're, they're very tiny tax bills. And so the RDA helped. 00:06:24
Pay for a lot of this development and helped us bond against that future property tax growth. 00:06:31
So today's agenda item again extends the life of the RDA so that we can delay the triggering of those certain parcels, so we can 00:06:40
maximize that full 25 year collection period where the city is receiving 75% or the city's RDA is receiving 75% of all the taxes 00:06:46
from those other agencies. 00:06:52
So there's a huge benefit to Vineyard. It helps really County with all the growth that is experiencing, helps provide efficient 00:06:58
use of our land. 00:07:03
Have these wasted, blighted parcels throughout throughout the area. 00:07:08
And so this is a great benefit to the city. 00:07:14
With that, do you have any questions? Any questions from the product? 00:07:18
OK, seeing as there are none. Oh, come on up. 00:07:24
Seeing as there's one. 00:07:27
Sorry, it should be more front. My name is Jordan Christensen. 00:07:30
I'm just wondering if you have any projections. 00:07:35
I guess first. 00:07:41
Understanding how much debt we currently have maybe associated with these parcels and what our financial position would be if we 00:07:44
didn't take this action. 00:07:48
Yeah, That's a good question. The second part of your question, um? 00:07:56
If we didn't take this action, we would just be less equipped to pay back the debt that we have now. We wouldn't be unequipped to 00:08:00
do that. We're still in a very. 00:08:04
Sound position with the RDA, we have about $4 million of annual payments on our bonds that extend out for about 20 years and we 00:08:10
have $10 million of annual increment currently that's being produced in the RDA. And so future years that $10 million is going to 00:08:17
continue to grow and then our bond payments are going to continue to shrink based on our projections right now. 00:08:24
And add that if we didn't do this. 00:08:32
Then we would lose value. We would lose money. 00:08:34
Well, and additionally, we wouldn't be able to clean up the rest of what we're doing. 00:08:38
OK. Any other questions? Any other questions? 00:08:44
Then I need a lesson to go out of the public hearing. Thank you, Ty. Second and second by Amber. All in favor? Aye. All right, 00:08:47
Council. Just getting RDA board. What would you would you like to discuss this, or can I get a motion? 00:08:54
I have a motion if there's no questions. 00:09:04
I move that the RDA board approve and adopt. 00:09:08
2023-08 to extend the life of the RDA. 00:09:14
In the mapped. 00:09:20
All remaining untrig. 00:09:22
Can I get a second second Thank you. First by tie, Second by Amber Tice. Yay, Amber. I yay. Marty's not here, Christy. 00:09:24
I OK, let's go into another public hearing. This is the amending of the Vineyard RDA Fiscal Year 2023-2024, Budget Amendment #1, 00:09:33
Resolution U2023-09. It moves to go into a public hearing. Thank you, Amber. 00:09:41
Second Chrissy. All in favor? Aye? All right, David. 00:09:51
Thank you. I'm a little bit offended that the crowd has gone for this, but I guess it really wasn't for me after all. 00:09:57
I appreciate you guys. 00:10:05
That would be great. I wouldn't. I wouldn't mind. Yeah. Thank you. 00:10:12
And so this will be pretty quick. So the budget amendment for the RDA is all just carry over funds from the RDAS capital expense 00:10:16
account. So the various projects that you see on the screen are projects that were started in the prior fiscal year that were not 00:10:23
completed during the fiscal year, but we still would like to complete. And so with the Board's approval, we would like to amend 00:10:31
the budget for these items in the total of 860,000 and 64 dollars. Any questions from the public? 00:10:38
OK. Seeing as there are no questions from the public, I'm going to go out of the public hearing. 00:10:47
Absolutely. First by Amber. Second by Christy. All in favor? Aye. Hardy aboard. I would love it if we could move this to the 00:10:52
November 8th meeting, if that's OK. 00:10:56
That's my motion. 00:11:02
Second, all in favor. 00:11:04
Hi. Great motion to adjourn. And 2nd, 2nd all in favor. All right. 00:11:07
Glory Halloween. 00:11:15