Item 2b_AEDC Consultant Presentation — original pdf

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SOUTH CENTRAL WATERFRONT Austin Economic Development Corporation DECEMBER 21, 2020 SCWAB Update - AEDC | 1 Update: Austin Economic Development Corporation § City Council approved the creation of the AEDC in Resolution No. 20201001-055 § AEDC Major Projects § South Central Waterfront § Cultural Trust § Huston-Tillotson Master Planning Support § International Investment Fund § Ongoing City-Wide Projects § Support on P3 negotiations § Public Pipeline Coordination § Other Projects as directed by Council SCWAB Update - AEDC | 2 Public Real Estate Developer § Why? A public developer can… § Move at the pace of the market § Speed approvals, but with the direct oversight of the City § Reduce the burdens of government with new funding sources § Own and operate real estate to generate cash § Accept charitable donations § Accept investment dollars § Blend the best of public and private deal-making § Generate more money for COA from under-performing real estate SCWAB Update - AEDC | 3 South Central Waterfront Purpose: Manage P3 Negotiations, Regulating Plan and TIF/TIRZ Multiple South Central Waterfront plans have called for the creation of a dedicated local government corporation to manage the implementation of the plan and serve as a steward for the project over the next 20 years – we propose that is Austin Economic Development Corporation. SCWAB Update - AEDC | 4 AEDC Organizational Chart Three Year Stabilized View City of Austin Board of Directors President & CEO Admin Chief Financial Officer General Counsel Chief Operating Officer Chief of Staff (GovCo & PR) IIF Manager Budget Analyst Chief Transactions Officer (CXO) Asset Management Planner SCWAB Update - AEDC | 5 AEDC – COA Master Contract AEDC will propose an annual contract, becoming a public developer on behalf of COA § Real Estate Projects (Three Types) § Lease Administration: AEDC will manage properties on behalf of the City. The City will retain title. AEDC will be paid out of proceeds from the property and will follow all City rules for procurement and disposition. The City retains title. § Transaction Support: AEDC will perform a transaction (lease, sale, purchase) on direction from the City. AEDC will follow all City procurement and disposition requirements, as applicable. AEDC must comply with all Texas law and will obtain appropriate licenses and certifications including a Broker’s license. AEDC will never have any property interest. Payments to AEDC will be made from the transaction. § Public Development: The transfer of property to AEDC will be done with an explicit contractual requirement to achieve a public purpose. AEDC will take title to the property. However, if AEDC does not use the property for the public purpose, the City will revert the property. If AEDC must abide by all City procurement rules, even should it determine to perform a further disposition—any such further disposition must still comply with achieving the public purpose. § Contracts for Services: § COA directs AEDC to provide services to reduce the burdens of government. These services can be paid for directly via contract, or can be funded as offsets to rent, real estate or other payments due from AEDC to COA. § A Master Development Agreement for the SCW will be proposed by AEDC to the City Council in February 2021. § AEDC will provide a detailed, public annual report to COA SCWAB Update - AEDC | 6 South Central Waterfront Status Update § Process § Tasks § Weekly task work meeting with City § Monthly Advisory Board Meeting: SCWAB § Evaluate previous analysis and precedent documents § Investigate and call the question on the “but for” case § Determine options for Statesman (with and without TIF) § Determine policy outcomes (affordable housing, infrastructure) with/without TIF § Engage as directed by Finance with outside market research & municipal advisors § Enter into a Master Development Agreement with COA to manage the district § Outcomes § Statesman recommendation § TIRZ Feasibility recommendation § Proposal for Master Development Agreement SCWAB Update - AEDC | 7 Proposed Timeline & Next Steps 12/14/20 12/16/20 1/18/21 1/25/21 2/4/21 2/18/21 Dec Dec Dec Jan Jan Feb Feb week of 12/14/20 Council One-on-Ones Council TIRZ Worksession Council Meeting (TIRZ Hearing) Council Meeting (Approval of: AEDC Master Development Agreement & TIRZ) AEDC Board Meeting Stakeholder presentation (Board nominees) SCWAB Meeting (AEDC Progress Review) SCWAB Update - AEDC | 8 Proposed Timeline & Next Steps § Week of Dec 14th AEDC Board Meeting Stakeholder Meetings § December 21st SCWAB Meeting SCWAB Meeting (Estimated) Council work session on “but-for” Council Meeting (Potential) TIRZ hearing § January 18th § January 25th § January 27th § February 4th § March § Feb – May § April – May § May 2021 § February 18th (Potential) Vote on TIRZ & MDA with AEDC Complete Statesman negotiation & infrastructure plan Finance & municipal advisor diligence AEDC negotiations with individual landowners Earliest Potential Bond Vote (if TIF is selected) SCWAB Update - AEDC | 9 SCWAB Update - AEDC | 10