Item3_2022-11-14_AEDC_URB Presentation_DistrictPrecedents — original pdf

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Implementing inclusive and equitable public development services as a non-profit partner to the City of Austin November 14, 2022 Urban Renewal Board Urban District Precedents ▪ Urban Renewal Statute-Structure ▪ District Goals & Purposes ▪ District Structure Precedents ▪ Discussion Any consideration of district or neighborhood work starts with a broader discussion about purpose, activities, then governance and capacity/sustainability. The following presentation is meant to be a springboard for discussion, and is not a recommendation for future district structure. Austin EDC 2 Urban Renewal Statute ▪ Under Chapter 374, of the Texas Local Government Code, the City carries out Urban Renewal activities through an Urban Renewal Agency (URA). ▪ Created December 7, 1959 , 11 Modifications ▪ 6 urban renewal areas were created – 4 terminated Jan 1, 2005 ▪ Remaining plans: ▪ East 11th - 12th Streets ▪ University East Project - Non-active plan. ▪ Plan expires December 31, 2028, with an evaluation in December 2024 to determine if the Plan should remain in effect. ▪ Urban Renewal Statute and powers are a ‘tool’ in the toolbox for revitalization Austin EDC 3 Urban Renewal Statute The Urban Renewal Agency (URA) powers are defined in Chapter 374 of the Texas Local Government Code. ▪A municipality may exercise urban renewal project powers through a board or through municipal officers selected by the governing body of the municipality by resolution. The municipality may exercise those powers through an urban renewal agency created under this subchapter if the governing body by resolution determines that the creation of an urban renewal agency is in the public interest. An urban renewal agency created under this subchapter may exercise all the urban renewal project powers of the municipality. Austin EDC 4 Urban Renewal Statute The Urban Renewal Agency (URA) powers are defined in Chapter 374 of the Texas Local Government Code. State law authorizes the URA to: ▪ prepare property under its control for sale or transfer; ▪ conduct preliminary surveys to determine if undertaking an urban renewal project is feasible; ▪ conduct urban renewal projects described in an urban renewal plan; and ▪ develop, test, and report methods and techniques for the prevention of slums and urban blight and conduct demonstrations and other activities in connection with those methods and techniques, and apply for, accept, and use federal grants made for those purposes. Austin EDC 5 Urban Renewal Statute As defined in Chapter 374 of the Texas Local Government Code, the URA does not have the authority to: ▪Determine if an area is, due to being blighted or a slum, appropriate for a project; ▪Approve, amend or hold public hearings related to urban renewal plans; ▪Establish general plans for the locality as a whole; ▪Make findings related to slum or blighted areas; ▪Formulate programs, exercise zoning power, or enforce other land use regulations; or ▪Cause the relocation of persons displaced as a result of redevelopment undertaken pursuant to a plan. Austin EDC 6 Urban Renewal Districts Boston: 19 Districts, 3000 Acres Last updated 2016-2022 Sunsetting Districts this year “achieved economic development purposes” San Antonio: 12 Districts, Last updated 2017 Affiliated with ‘Neighborhood Improvements Bond’ • Urban Renewal laws are determined state by state (structure, plan process and uses) • Urban Renewal is still a tool used by many cities to address redevelopment—often managed by one centralized Atlanta: 22 Districts, 49,000 Acres Last updated 2011 planning and development agency tasked with supporting and staffing the district (often an LGC) • Requires City Council & State Approval Austin EDC 7 Where does the Urban Renewal District Fit in? Six Square District • 2030 Vision plan in motion • Official Texas Cultural District Board of Directors + Staff (501C3) AAHCD District • City Resolution Urban Renewal District • NCCD alignment LGC Appointed Board Blocks 16 & 18 • Last 2 parcels in Urban Renewal District Urban Renewal District Map 11th & 12th Streets • Subset of Six Square District • Blocks 16 & 18 are the last two Urban Renewal owned parcels. Six Square Map What else might the District need? Start with ‘Purpose’ ▪ Clean & safe services ▪ Business recruitment / incubation ▪ Collective marketing ▪ Community steward of vision/development and experience ▪ Redevelopment support for other parcels/support other property owners Depending on what the community might need, you would identify/select the right revenue/governance/capacity model that fits those uses. Any evaluation of future district needs should be a community conversation/aligned with other larger district vision plans Austin EDC 11 District Models-Summaries Regulatory/Enforcement SETTING AND OVERSEEING RULES • Goal to achieve and monitor specific development or public health plans • Regulatory Plan/Managed by City Staff Association/Convener/ Representation FACILITATING AN EXPERIENCE • Merchants association with volunteers and/or paid staff • ‘Main Street’ that would assess MEMBERS fees/support from municipality/State Special Purpose Districts in Statute— PERFORMING FUNCTIONS • Urban Renewal • PID for maintenance and marketing • TIRZ for infrastructure projects Development Strategy & Implementation A MIX OF MULTIPLE DISTRICT MODELS • Urban Renewal + TIRZ + PID • EcoDistricts Austin EDC 12 Main Street Districts/Merchants Associations Main Street • Boundaries/districts not required to be mapped, but usually associated with a geography • No special assessments, all funding from typical non- profit sources Funds flexible • • Often State organizations, City supplemental funding • No ‘approval’ necessary • Difficult to sustain without ongoing City or philanthropic support Main Streets in the US: (None in Austin) Austin EDC 13 Non Profit Heritage Conservancy Conservancy • Boundaries/districts not required to be mapped, but usually associated with a geography • No special assessments, all funding from typical non- • profit sources Funds can be used however the Board of Directors determines • No ‘approval’ necessary • Difficult to sustain without ongoing City or philanthropic support Houston: Freedman’s Town Conservancy Austin EDC 14 Special Purpose Districts- Public Improvement Districts PID • Defined geographies • Assessments • agreed to by owners Funds can be used for infrastructure, supplemental services, maintenance • City Council approval necessary Austin: Downtown Austin San Antonio: Westside Development Corporation Proposed (Already a PID downtown) Austin EDC 15 Special Purpose Districts- Municipal Management Districts MMA • Defined geographies • Assessments • agreed to by owners Funds can be used for infrastructure, supplemental services, economic development, recruitment • Business focus • City Council approval necessary 16 Houston: Greater East End Management District Austin EDC Special Purpose Districts- Tax Increment Reinvestment Zone TIRZ • Defined • geographies • City allocates incremental property tax towards District needs Funds can be used for infrastructure, affordable housing in a defined plan • City Council approval necessary Austin: Mueller & Seaholm City of Austin uses TIRZ for City owned property Houston: East Downtown Austin EDC 17 Special Purpose Districts- TIRZ TIRZ • Defined • geographies • City allocates incremental property tax towards District needs Funds can be used for infrastructure, affordable housing in a defined plan • City Council approval necessary Austin EDC 18 Development & Implementation District Hybrids ▪ Often an ‘umbrella organization’ ▪ District focused or ▪ Larger, defined to do a particular redevelopment function for a City ▪ Assembly of ‘tools’ and programs to support the work/purpose ▪ Diversified revenue stream to provide for human capacity and services, as well as redevelopment support. Austin EDC 19 TDI METHODOLOGY TDI STORY 1. TDI Assistance Empty lot, empty buildings 2015 Downtown Activation Strategy 2 TDI Fellow Paint & install art on empty building 2016 3 TDI Places Activate lot with placemaking (monthly summer) 2017-8 TDI Fellow Create & recruit young professionals group to run ops 4 TDI Felllow Recruit local biz to do pop up, recruit developers, focus on diverse biz that reflect the local market 2018 5 TDI Local Businesses across street from lot upgraded with storefront improvements 2019 6 MA Housing 9% Empty lot develops into affordable/market housing 2021 7 MDFA Financing Adjacent parcels financed for rehab, market rate development 8 TDI Fellow Developer recruits local business from pop ups, business assistance 9 MDFA Financing Financing helps secure business with retail and distribution Brockton MA-Strategic Focus on Downtown Downtown Action Strategy (2015) • Provided initial framework for activation and strategic focus • Supported by TDI Program • Evaluation of Public Finance Tools (DIF, Urban Renewal, BID) • Re-energize Brockton Redevelopment Agency (dormant) DIF (same as TIRZ in TX) (2015) • Provided initial slow-accumulating funds for infrastructure and district administration; capture value from future development Urban Renewal Plan (larger area) (2016) • Enabled the acquisition of property, identification of properties for redevelopment BID (PID in TX) (in progress) • Provides additional funds for human capacity Austin EDC 22 Discussion ▪ What is the overall goal/purpose of the Urban Renewal Board/What is needed in the District— Regulatory Experience Special Purpose Combination ▪ During the disposition of Blocks 16 & 18 ▪ After the Development of Block 16 & 18 ▪ Things to consider: ▪ Function ▪ Governance ▪ Revenue ▪ Human Capacity Austin EDC 23 Block 16 & 18 Disposition- Proposed Community Engagement ▪ Community Conversations ▪ September 28: 4-7pm at TBD ▪ September 30: 11am-2pm at TBD ▪ October 2: 12-2pm at TBD ▪ These are not formal presentations, but chances to meet the team and provide feedback and input on the various uses the community would like to see in the future development ▪ Video Update: Monday October 3 at 5pm ▪ Please email anne@austinedc.org if you would like to be notified of all meetings directly, or have input to share. Austin EDC 24