AEDC Board Update Presentation — original pdf

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Update to Austin Economic Development Corporation (AEDC) Board of Directors South Central Waterfront March 21, 2022 Agenda ❑ Key Ingredients for Implementation ❑ Austin’s Past Experience Implementing Projects ❑ How Past Projects Inform AEDC Role ❑ City and AEDC Roles ❑ Governance ❑ Next Steps C I T Y O F A U S T I N EC ON OMI C D EVEL OP M EN T 2 3 Key Ingredients for Vision Implementation ❑ Governance and Organization ➢ Creation of external development entity (AEDC) ➢Dedicated City staff working group /leads ❑ Physical Framework through Regulation ❑ Public Financing Tools (selected): ➢ City capital improvements program (CIP)/ Voter approved bonds ➢ Redeveloping City-owned land (1 parcel: One Texas Center) ➢Economic development agreements ➢Tax Increment Reinvestment Zone ➢Public Improvement District ➢Affordable housing incentives ➢Density bonuses / Transfer of Development Rights C I T Y O F A U S T I N EC ON OMI C D EVEL OP M EN T 3 C I T Y O F A U S T I N EC ON OMI C D EVEL OP M EN T 4 SEAHOLM DISTRICT • 1990s- 2004 City dialogue, planning, and studies to redevelop City owned parcels downtown, sites of major utility infrastructure Seaholm Power Plant and Green Water Treatment Plant • 2004-2022 Seaholm and Green WTP redeveloped with Central Library, retail, housing, and offices • Housing Components – 741 Ownership: The Independent (363); Austin Proper (98); Seaholm Residence (280) – 439 Rental at Northshore of which 50 affordable units (min. 10%) • Generates $5+ million annually in taxes • Other Community Benefits: Great Streets, LEED/Green Building, public art ($200,000 private), local business required (> 30%) C I T Y O F A U S T I N EC ON OMI C D EVEL OP M EN T 5 Mueller Redevelopment Overview 700 acres, Former airport site Long-term planning, citizen INPUT Public private partnership Mixed-use, mixed-income community 25% FOR-SALE and rental units in affordable homes program 20% PARKS AND OPEN SPACE UT-Austin Downtown Credit: McCann Adams Studio Residential Commercial Institutional Retail 1993 Decision to move airport 1997 Planning Begins 1999 Airport Closes 2000 Plan Adopted by Council 2002 Develope r Selected 2004 Agreeme nt Signed 2007 First Projects Built Greenspace 2021 Develop ment Continue s Infrastructure 2024 Estimate d Completi on C I T Y O F A U S T I N EC ON OMI C D EVEL OP M EN T 6 Mueller Development Program Development Program Complete/Unde r Construction At Completion Single and Multi-Family Residential Units Affordable Units Commercial/Institutional/Retail Current Jobs 4,800 6,900 1,460 3 M sf 8,100 1,725 5.5 M sf 16,700 Parks/Open Space 125 acres 140 acres Property Taxes $9.2 M TIF revenue (2020) 7 C I T Y O F A U S T I N EC ON OMI C D EVEL OP M EN T 7 8 In Process: Colony Park Sustainable Community ❑ 208 acres of City owned land (AHFC) ❑ Town Center / Innovation District ❑ Proposed Green Line TOD stop ❑ +3,000 housing units ❑ 20% affordable units ❑ + 960,000 SF commercial ❑ 46 acres open space ❑ Adjacent elementary school, 95 acre district park and recreation center ❑ City Council adopts Plan and PUD 2014 ❑ Imagine Austin Comprehensive Plan amended to include Colony Park 2016 ❑ Master Developer RFQS/RFP solicitation: City Council consideration of selected master developer (Catellus) 10/4/2018 C I T Y O F A U S T I N EC ON OMI C D EVEL OP M EN T 8 9 SCW Unique Initiative of Past City “Projects” C I T Y O F A U S T I N EC ON OMI C D EVEL OP M EN T 9 Past Land Development ProjectsSouth Central Waterfront Former City-owned land Many privately-owned parcels City procures private sector partner(s) to implement plan over entire acreage City owns only 1 parcel out of entire 118 acres of property in districtCity puts in place land use regulations in partnership with development partner Land use regulations in process of development TIRZ created after land use regulations in place TIRZ initiated prior to regulatory plan adoption TIRZ only one of many public financing tools that makes up the funding "plan"TIRZ only one of many public financing tools that makes up the funding "plan"All public financing commitment in place to implement the plan City still in process of analyzing and establishing the entire funding plan City - private developer master development agreement executes planMany customized agreements with private property owners to do planNo private development would occur without City Council action / inducementPrivate development occuring Past Master Developer Obligations Acquires land from City and contracts to build or builds directly: • Infrastructure (City may pay / share cost) o Roads o Utilities o Detention ponds o Parks / amenities • Vertical development (residential / commercial) C I T Y O F A U S T I N EC ON OMI C D EVEL OP M EN T 10 11 AEDC as “Master Developer” per ILA for SCW ❑ Provides critical market intelligence and private sector perspective to inform City policy ❑ Provides private sector intelligence to creation and deployment of capital improvement plan ❑ Markets and engages private sector in partnering on implementing the Vision ❑ Negotiates incentives / resources to structure partnerships with private developers ❑ Administer tax increment reinvestment zone ❑ Take lease or ownership positions on specific real estate transactions ❑ Raise private sector funding C I T Y O F A U S T I N EC ON OMI C D EVEL OP M EN T 11 Economic Development Department Overview South Central Waterfront Plan Implementation The City Manager tapped Economic Development Department (EDD) to lead the City’s effort to implement the SCW Vision Plan October 1, 2021. EDD has initiated a two-step approach to develop and coordinate essential components of Plan’s success. Administrative Actions ❑ Administrator for AEDC ILA ❑ Dedicated staff position with management support ❑ SCW Advisory Board Oversight ❑ Interdepartmental Working Group with AEDC • Key task confirming City cost estimates Coordination with Key Departments and AEDC ❑ Regulating Plan – Housing & Planning Department lead ❑ Financial Tools, including TIRZ19 – Financial Services lead ❑ One Texas Center Redevelopment – Financial Services lead ❑ Implementation – AEDC per the Interlocal Agreement + EDD C I T Y O F A U S T I N EC ON OMI C D EVEL OP M EN T 12 13 City Role – Policy Formation informed by AEDC ❑ City responsible for obtaining Council- approved financing and land use policies ➢ Financial Services (Financial): Tax Increment Reinvestment Zone Public Improvement District Bonds ➢ Housing & Planning (Regulatory): Regulatory/ Land Use Plan Affordable housing incentives ❑ Utility departments outline capital improvements needed (CIP) ➢ Austin Transportation ➢ Public Works ➢ Austin Water ➢ Watershed protection ➢ Telecom. and Regulatory Affairs C I T Y O F A U S T I N EC ON OMI C D EVEL OP M EN T 13 14 AEDC Operationalizes and Executes Philanthropy Public Incentives City Policy Financial Regulatory CIP AEDC Private Sector C I T Y O F A U S T I N EC ON OMI C D EVEL OP M EN T 14 15 Governance ❑ City of Austin City Council ❑ AEDC Board (authority from City Council) ❑ South Central Waterfront Advisory Board (advises City Council) ❑ Tax Increment Reinvestment Zone Board (same members as City Council) ❑ Potential AEDC contract to administer TIRZ (Enabled and annually appropriated by City Council) C I T Y O F A U S T I N EC ON OMI C D EVEL OP M EN T 15 16 Recent Implementation Actions Date 3/15/2021 6/10/2021 9/2021 10/1/2021 10/21/2021 11/16/2021 12/20/2021 02/01/2022 Key Milestones AEDC Presentation to SCWAB Matt Kwatinetz TIRZ and AEDC Briefing (Item 2c @ 42:00) City Council unanimously approve Interlocal Agreement (ILA) Addenda 1 – 3 including South Central Waterfront (#3) Council Work Session Presentation 6/8/2021 AEDC hires first full-time staff: Chief Transaction Officer (CXO) Housing and Planning transfer SCW initiative to Economic Development Department: City Memo to SCWAB 8/11/2021 EDD organization and staffing changes + internal working group City Memo to Mayor and City Council October 21, 2021 Council Resolution 20211021-044 City Council Work Session Briefing on TIRZ and SCW update Council adopts Ordinance 20211220-002 establishing TIRZ #19 City Council Work Session Briefing on SCW TIRZ #19 (Preliminary Project and Finance Plan) 2/14/2022 EDD hires Project Manager for South Central Waterfront initiative C I T Y O F A U S T I N EC ON OMI C D EVEL OP M EN T 16 17 Key Ingredients for Vision Implementation ❑ Governance and Organization ➢ Creation of external development entity (AEDC) [completed] ➢Dedicated City staff working group /leads [completed] ➢Governance coordination [in progress] ❑ Land Use Regulations [in progress] ❑ Public Infrastructure Plan [in progress] ❑ Affordable Housing [in progress] ❑ Public Financing Tools (selected): ➢ City capital improvements program (CIP)/ Voter approved bonds ➢ Redeveloping City-owned land (1 parcel: One Texas Center) [on hold] ➢ Economic development agreements ➢ Tax Increment Reinvestment Zone [in progress] ➢ Public Improvement District ➢ Affordable housing incentives ➢ Density bonuses / Transfer of Development Rights C I T Y O F A U S T I N EC ON OMI C D EVEL OP M EN T 17 18 Near Term Actions C I T Y O F A U S T I N EC ON OMI C D EVEL OP M EN T 18 Questions? Thank you. Christine Maguire, AICP, EDFP Division Manager, Redevelopment Economic Development Department 20 Theoretical TIRZ Operation C I T Y O F A U S T I N EC ON OMI C D EVEL OP M EN T 20 21 “But For” the TIRZ: Market Analysis Capital Market Research (CMR) C I T Y O F A U S T I N EC ON OMI C D EVEL OP M EN T 21