City Council Minutes 2016 01 19 - Laserfiche WebLink

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City Council Special Meeting Minutes January 19, 2016 Page 8 of 25 Staff's response: Utilizing the Xceligent database, of the 29 retail properties within one mile of the location, there is a total of 511,540 square feet of leasable area and as of Q4 2015, there is 25,991 sf available resulting in a vacancy rate of 5.1%. In Q4 2012, there was a vacancy rate of 14.6% for the same area. Vacancy rates above 10% for retail is viewed as an early sign that challenges exist for the market. 2) How many properties have been required or will be required to remove driveways from HWY42 as part of the HWY 42 Plan and what is our City Traffic Engineers opinion/recommendation of the driveway onto 42? Staff's response: 8 driveways will be removed; the plan was approved by the City Traffic Engineer. 3) Could you include the Fire Departments Referral Comments? Staff response: The Fire Marshal comment letter was submitted. 4) Can you make a table explaining the property tax structure on this property (including metro district) and how the mills change with the change in zoning - including a comparison showing one commercial property to the many broken up areas. Staff's response: Commercial property is taxed at 29% of market valuation, while residential is taxed at 7.96% of market valuation. According to the model, the proposed development would generate $22,000 per year in property tax at buildout, with a 20 year cumulative total of $408,000. The original GDP would have generated $29,000 per year and $517,000 cumulatively. A table was presented. COUNCIL QUESTIONS Council member Stolzmann addressed tracts A through D and Blocks 1 — 6 and asked if there were individual properties. Interim Planning and Building Safety Director Russ explained tracts are typically public property /public shared spaces (Parks and Plazas). Those tracts are not revenue generating properties. Council member Stolzmann asked if either the City or the Metro District would receive any revenue from those tracts. City Attorney Light explained if tracts are owned by an association, they would not have their own separate tax ID and separate tax bill. Under the Common Interest Act, the value of the residential and commercial property is parceled out and assumed as part of the value of the private land. None of the entities would realize the benefit of the land on a tax bill specific to a common area. Council member Stolzmann inquired how the benefit would be distributed to a parking area in a commercial area. Mr. McClure explained parking for the commercial uses would be valued for the commercial units and would be collected with the commercial units' tax bills. The driveways and parking spaces for the residential uses would be valued for condominium units and would be collected with the residential tax bills. Council member Stolzmann explained this Metro District has a steep mill rate and she wanted to ensure each parcel was paying their fair share.