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RESOLUTION R-1516-11: A RESOLUTION OF THE COUNCIL OF THE CITY OF NORMAN, OKLAHOMA, ACKNOWLEDGING THE RECEIPT OF THE ASSESSMENT ROLL AND ASSESSMENT PLAT FOR THE UNIVERSITY NORTH PARK BUSINESS IMPROVEMENT DISTRICT, INSTRUCTING THE CITY CLERK TO GIVE NOTICE OF A HEARING ON THE PROPOSED ASSESSMENT ROLL; AND CONTAINING OTHER PROVISIONS RELATED THERETO.
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BACKGROUND: The Project Plan for the UNP TIF District (Ordinance 0506-66; adopted May, 2006) provides for the development of Legacy Park. Development Agreement Number Three (adopted in 2007) escalated the Park construction schedule ahead of the Lifestyle Center construction schedule that was anticipated when the Project Plan was adopted. Development Agreement No. 3 also provided that the Developer donate the Park property to the City, the City then construct the Park, and the Developer would then maintain the Park (excluding capital maintenance items). Development Agreement No. 3 also provided for $900,000 in TIF revenues to serve as Development Assistance for the purpose of helping to establish a viable maintenance matching fund for the Park.
The Legacy Park design was completed in the fall of 2009. The Park design, by Howard-Fairbairn Associates and accepted by the Norman Tax Increment Finance Authority (NTIFA)/Council, was recognized by the American Society of Landscape Architecture as the recipient of the Central States Design Honor Award.
Development Agreement No. 5 was adopted by Council in 2012 and it, among other things, solidified funding for Legacy Park construction and solidified the Legacy Park and Legacy Trail maintenance structure. University Town Center LLC (the “Developer”) and University North Park, LLC (a wholly owned subsidiary of the OU Foundation and owner of most of the northern portion of the TIF increment district) agreed to request that the City create a Business Improvement District (BID) to provide funding for maintenance for both Legacy Park and the portions of Legacy Trail within University North Park. The $900,000 in Development Assistance referenced in Development Agreement No. 3 was structured to provide BID funding of $200,000 per year through allocation of a combination of TIF funds and BID assessments over the ten years of the life of the BID. The first year started with a $200,000 TIF Fund allocation. The second year is composed of a $25,000 BID assessment and a $175,000 TIF Fund allocation. The third and subsequent years increase the BID assessment by $25,000 and reduce the TIF Fund allocation by $25,000 until a total of $2,000,000 is provided for BID maintenance and improvements over the ten year period.
After receiving a petition from more than 80% of the property owners in University North Park requesting the BID be created, Council adopted Resolution R-1415-11 creating the University North Park Business Improvement District, in July 2014. Ordinance O-1415-4 was later approved adopting the assessment roll as proposed. Because the assessments will vary from year to year based upon the City TIF Fund’s declining annual contribution and the corresponding increase in the property owner’s contribution to the BID, as well as additional development in the district (the pro-rata share of the property owner’s cost will change with changes in the number and value of properties within the BID area), the City must hold a hearing on the proposed assessments each year.
DISCUSSION: Resolution R-1516-11acknowledges receipt by the City Clerk of the University North Park Business Improvement District 2016 Assessment Roll and corresponding Assessment Plat. The Resolution also authorizes the Clerk to provide notice to the property owners in the district of a hearing on the assessments on August 25, 2015 at 6:30 p.m. This process also requires an Ordinance officially levying the assessments and granting the City authority to place a lien on property if assessments are not paid. The first assessment was collected from all property owners and no liens have been required. The $25,000 assessed and collected last fiscal year was included in the Budget for Legacy Park in FYE16. Similarly, the $50,000 in assessments will be levied and collected this fiscal year and included in the budget for FYE17. On August 25, 2016 the ordinance allowing the levy and collection of the $50,000 will be considered by Council on second reading following the public hearing on the assessments.
RECOMMENDATION: Staff recommends adoption of Resolution R-1516-11.