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Home My WebLink AboutPCD 2022-10-03 Item 1A - Budget - Proposed 2023-2024 Biennial Budget: Urban RenewalCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Community Development Committee FROM: Derek Speck, Economic Development Administrator CC: Mayor Ekberg DATE: September 26, 2022 SUBJECT: Proposed 2023-24 Biennial Budget for Urban Renewal Fund 302 ISSUE Recommended 2023-24 budget for Fund 302 (Urban Renewal). BACKGROUND The Urban Renewal Fund was established for tracking certain redevelopment projects such as Tukwila Village and the City's purchase of motels on Tukwila International Boulevard. DISCUSSION The proposed 2023-24 budget and related Capital Improvement Program (CIP) sheets are attached. The projects within the Urban Renewal Fund are nearly complete and staff plans to close the fund after the 2023-24 biennium. FINANCIAL IMPACT Revenues and expenditures are shown on the attachments. RECOMMENDATION For information and discussion. The Council is being asked to consider this item at the October 10, 2022 Committee of the Whole meeting. ATTACHMENTS Draft Proposed Biennial Budget for the Urban Renewal Fund 302 Draft CIP sheets for projects within the Urban Renewal Fund 302 1 2 DEPARTMENT: FUND: Urban Renewal RESPONSIBLE MANAGER: Derek Speck Description FUND NUMBER: 302 POSITION: Economic Development Administrator The Urban Renewal fund has been established to provide future funding needs to encourage redevelopment in specific areas throughout the City. 2021-2022 Accomplishments ♦ Tukwila Village developer completed construction of final building (Building B). Strategic Plan Goals 1, 3 & 5 ♦ Executed an agreement to sell the former Traveler's Choice motel property to Tukwila Community Coalition, LLC and closed on the sale. Strategic Plan Goals 1, 3 & 5 ♦ Terminated billboard lease and cleared due diligence under the agreement to sell the former motels site (Great Bear, Spruce, and Boulevard motels plus the Smoke Shop) to HealthPoint. Strategic Plan Goals 1, 3 & 5 ♦ Executed an agreement providing HealthPoint access and maintenance responsibilities for the property they are purchasing from the City. Strategic Plan Goals 1, 3 & 5 2023-2024 Outcome Goals ♦ Close escrow for the sale of the former motels site to HealthPoint. ♦ Sell the former Newporter motel property. 2023-2024 Indicators of Success ♦ City receives final payment on the HealthPoint site. ♦ City sells Newporter site. 3 Revenue and Expenditure Summary Urban Renewal Projects Actual Budget Percent Change 2020 2021 Projected 2022 2022 2023 2024 2022-2023 2023-2024 Revenue Investment Earnings Sale of Capital Assets $ 35,328 - $ 2,629 1,400,000 $ 8,200 1,300,000 $ 10,000 1,850,000 $ - 1,350,000 $ - -100.0% -27.0% 0.0% -100.0% Total Revenue 35,328 1,402,630 1,308,200 1,860,000 1,350,000 - -27.4% -100.0% Projects Tukwila Village 6,416 8,312 12,710 10,000 - - -100.0% 0.0% TIB Redevelopment Project 13,157 13,017 20,000 -- - 0.0% 0.0% Total Project Expenditures 19,573 21,329 32,710 10,000 - - Transfer Out to General Fund 400,000 786,184 2,553,951 3,186,000 300,000 200,000 -90.6% -33.3% Transfer out to 305 2,753,000 - - - - - 0.0% 0.0% Total Expenditures 3,172,573 807,513 2,586,661 3,196,000 300,000 200,000 -90.6% -33.3% Beginning Fund Balance 5,004,388 1,867,144 2,462,261 2,462,261 1,183,800 2,233,800 -51.9% 88.7% Change in Fund Balance (3,137,245) 595,117 (1,278,461) (1,336,000) 1,050,000 (200,000) -178.6% -119.0% Ending Fund Balance $ 1,867,144 $ 2,462,261 $ 1,183,800 $ 1,126,261 $ 2,233,800 $ 2,033,800 98.3% -9.0% 4 General Ledger Code Details Revenues Expenses GL Account Code Account Description MR302300-524000 Industrial Insurance Actual 2020 2021 (12) - Actual Projected Budget 2023 - Budget Total Personnel Benefits GL Account Code Account Description 2020 2021 2022 2022 2023 2024 Revenues 2,000 10,000 - MR302300-541002 Attorney Services- - MR302300-361110 Investment Interest $ 35,328 $ 2,629 $ 8,200 $ 10,000 $ - $ - MR302300-395100 Proceeds From Sales Of Capital - 1,400,000 1,300,000 1,850,000 1,350,000 - Total Revenues $ 35,328 $ 1,402,630 $ 1,308,200 $ 1,860,000 $ 1,350,000 $ - Expenses GL Account Code Account Description MR302300-524000 Industrial Insurance Actual 2020 2021 (12) - Projected 2022 - 2022 - Budget 2023 - 2024 Total Personnel Benefits (12) - - - - - MR302300-541000 Professional Services 8,402 9,767 2,000 10,000 - MR302300-541002 Attorney Services- - 4,120 - - MR302300-541007 Contracted Services- - 22,040 - - MR302300-547021 Electric Utility (143) - - - - MR302300-547026 Surface Water utility 11,325 11,562 4,000 - - MR302300C-541000 Professional Services -- - - - MR302300C-547021 Electric Utility -- - - - MR302300C-547025 Water/Sewer Utility -- 550 - - - MR302300C-547026 Surface Water utility -- - - - - Total Services & Passthrough Pmts 19,584 21,329 32,710 10,000 - - MR302300-750000 Transfer Out to General Fund 400,000 786,185 2,553,951 3,186,000 300,000 200,000 MR302300-750305 Transfer Out to 305 2,753,000 - - - - - Total Expenditures $ 3,172,573 $ 807,513 $ 2,586,661 $ 3,196,000 $ 300,000 $ 200,000 5 6 CIP Page # PROJECT TITLE City of Tukwila CAPITAL IMPROVEMENT PROGRAM for 2021 - 2026 URBAN RENEWAL 302 Fund **Other After Six 2023 2024 2025 2026 2027 2028 TOTAL Sources Years 42 Tukwila Village 43 TIB Redevelopment (Motels) 5 0 0 0 0 0 5 0 0 10 0 0 0 0 0 10 1,350 0 Grand Total Changes from 2021 to 2023 CIP: None. 15 0 0 0 0 0 15 1,350 0 ** Denotes other funding sources, grants, or mitigation. 2021 -2026 Capital Improvement Program 41 CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2023 to 2028 PROJECT: Tukwila Village Project No. 90030222 DESCRIPTION: The City purchased and sold 5.76 acres of property at Tukwila International Boulevard and South 144th Street for a mixed-use development including senior apartments, a library, plaza, office, and retail. JUSTIFICATION: The new development will help revitalize the neighborhood. STATUS: The library was completed in 2017. Buildings D and E, Sullivan Center, and plaza were completed in 2018. Final land sale occurred in 2019. Building A opened in 2020 and Building B opened in 2021. MAINT. IMPACT: Land sale reflects sale of the Library parcel for $500,000 and Phase 1 for $2,252,000. Phase 2 revenue of COMMENT: $2,753,000 is shown in the Public Safety Plan. The project also purchased the Gregor House and Newporter properties. The value of those properties (estimated over $1.3 million) is not shown here. FINANCIAL Through Estimated (in $000's) 2021 2022 2023 2024 2025 2026 2027 2028 BEYOND TOTAL EXPENSES Project Location , ,VP - h it ,: Bs 1ii1 INN'," Design/Engineering 1,805 ' 'lif i )} e k S \ 1,805 Land (R/W) 7,604 20 5 V-{ ,: 7,629 Construction 230 230 TOTAL EXPENSES 9,639 20 5 0 0 0 0 0 0 9,664 FUND SOURCES Awarded Grant 0 Proposed Grant 0 Land Sale 2,755 2,755 Bonds 5,550 5,550 302 Fund Balance 1,334 20 5 0 0 0 0 0 0 1,359 TOTAL SOURCES 9,639 20 5 0 0 0 0 0 0 9,664 2021 - 2026 Capital Improvement Program 42 7 Project Location , ,VP - h it ,: Bs 1ii1 INN'," r ' 'lif i )} e k S \ ,50. V-{ ,: 1-__i i6N y GIS 2021 - 2026 Capital Improvement Program 42 7 8 CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2023 to 2028 PROJECT: TIB Redevelopment (Motels) Project No. 91330201 DESCRIPTION: Tukwila International Blvd (TIB) Redevelopment Project is for the acquisition and disposition of properties within and adjacent to the City's Urban Renewal Area. JUSTIFICATION: Improve the neighborhood's safety by eliminating the high amounts of crime associated with the Boulevard Motel, Great Bear Motel, Smoke Shop, Spruce Motel, and Travelers Choice Motel. The City sold the Traveler's Choice parcel to a consortium of businesses displaced by the Justice Center and is STATUS: selling land to HealthPoint for a new health and wellness center. An additional $265,000 of revenue from the Traveler's Choice sale is shown in Public Safety Plan funding. MAINT. IMPACT: Upkeep of property until development. COMMENT: Debt service costs are not shown below (see Attachment A). FINANCIAL Through Estimated (in $000's) 2021 2022 2023 2024 2025 2026 2027 2028 BEYOND TOTAL EXPENSES Project Location FER r T Engineering 403 All 403 Land (R/W) 5,205 A lT 4 itiiii 5,205 Const. Mgmt. 175 '.N 175 Construction 636 20 10 666 TOTAL EXPENSES 6,419 20 10 0 0 0 0 0 0 6,449 FUND SOURCES Awarded Grant 0 Land Sales - Traveler 400 400 Land Sales - HealthR 1,200 1,300 1,350 3,850 Bonds 6,100 6,100 302 Fund Balance (1,281) (1,280) (1,340) (3,901) TOTAL SOURCES 6,419 20 10 0 0 0 0 0 0 6,449 2021 - 2026 Capital Improvement Program 43 Project Location FER r T I 1 All NI 14 i A lT 4 itiiii '.N li 4 2021 - 2026 Capital Improvement Program 43