City of Des Moines, Iowa 2021 Des Moines City Council, 19 Jul 2021

Previous Meeting Next Meeting

⏯

youtube image

►

From YouTube: 7-19-21 City Council work session

Description

Des Moines City Council morning work session on Monday, July 19, 2021.

View the agenda: https://DSM.city/CouncilMeetings

A

B

A

Are we ready to go.

C

D

A

Okay, we're ready.

D

E

One second.

A

All right seconds up.

C

A

Okay, we can go ahead right good morning. Everybody welcome to our monday july 19th work session, uh we're going to jump right in and call this meeting to order, and our first item on the agenda is the central iowa economic development, district and scott will quickly kick it over to you and then let's get going.

F

All right, thank you mayor, so this is an opportunity to initiate a new organization that would have access to additional funds and resources, so the mpo has presented this gunner is going to do it and some of our own staff have been involved throughout.

G

Good morning, mayor and council pleasure to be with you, as always, I'd like to acknowledge my director todd ashby, which he wishes he could be here uh if this is being streamed, live he's watching. I also acknowledge andrew collings on our staff. He's been very involved in this throughout the entire process, also like to acknowledge carrie cruz who's been on our steering committee. uh It's been very good uh work to work with.

G

um There are copies of the presentation here. Do you guys have those yet yeah? Okay, and where are my slides? That's all.

G

Right, I assume you can all see them on your screens, so we'll do this all together: okay, okay, great okay!

G

So, as mentioned, my name is gunner olsen and we have been talking about possibility of an economic development district uh for nearly two years now it started shortly after the pandemic hit, and I remembered something that andrew told me is we'll we don't typically qualify for an economic development district in normal times, because central iowa is wealthy enough in many regards many measures to not meet the traditional metrics to become an economic development district, but in times of disaster, or in this case a pandemic, you can qualify so for today's presentation, I'm going to go through the background of what is it.

G

Why should we care uh we're? Also going to give you an update on where we are in the process? We are mid process. We're also going to look ahead at some of those next steps. I'll address. Some of the frequently asked questions that we've been getting and then also speak to questions that you may have so background. What is it? Why should we care central iowa is the only edd in the state that does not have an edd we've missed out on significant dollars?

G

Because of that, um and as mentioned because of the national emergency declaration, we are now qualified for for the first time, uh and this is the first time since the 2008, plus that we have had that opportunity. um Indianapolis and st louis are also exploring edds. So we explore, I personally have a goal to get to that edd destination before they do.

G

um You can see on the screen there, the seven county region that does not have the edd.

G

So what is it it's a couple of things: uh it is a designation um of a region as an economic development district. It is also the thing that is being designated. Is a entity typically made up of multiple jurisdictions, commonly cities and counties within that region? It's important to note a few things that it is not people hear economic development and they think. Oh, this is the partnership. It's not it's, not a chamber of commerce. Nor is it like the partnership uh it does not recruit.

G

Businesses is very much on the community infrastructure end of economic development, so very much related, but a different part of the spectrum of economic development. Similarly, not like the economic development offices, either cities or counties, it is not a council of governments. An edd can be a standalone entity.

G

There are a few different benefits here that are worth highlighting and I'll start with the regional plan. In order to have an edd, you need to have a comprehensive economic development strategy. This is regional plan, supports all your local plans, your comp plans, the tomorrow plan, etc, does not supplant them? Really, it's meant to enhance and support them. Probably the closest analogy would be the long-range transportation plan that the mpo uh maintains for the region, but rather this is about economic development projects.

G

uh The big interest for most parties is funding. uh This does open up potential funding opportunities. uh There is a project list on the included in the seds. What that tells the feds is that this has been already identified as a regional priority. So when there are stimulus dollars flowing it becomes, it makes it easier for those applications.

G

Occasionally, when there are large stimulus dollars coming through for disasters, uh money will go directly to an edd. uh So as an example, central iowa missed out on 470 thousand dollars of no match funding from the cares act. There's also annual funding to help administer the entity which requires a local match which we will get into. uh It also improves your overall applications for federal funding. Lastly, because there is staff, they can be supportive and to help act as a conduit between the local entities and uh agencies that are grantees. Yes,.

H

uh Say we missed out on 470 thousand dollars in no match funding from cares. Was that a miss mistake um oversight? Do we know why.

G

Purely because central iowa would not have an edd, oh and so, and I don't know why they didn't go after it in 2008, but because we didn't have one.

G

um So. As an example, um we've heard up in story county where an agency has been working with an edd grant and we've heard it from both sides, both the eda staff and the local staff. They really wish there was that middle agency to help make it more smooth.

G

So on the screen here, I've put up a few funding examples, uh and this is a little bit different than typical. It's a it's about a three year period uh from january of 18 to 21 and funding is higher because of the cares act. uh Typically you're. Looking at you know, couple million dollars in the state each year, um but you can see here. There's some high dollar amounts that got funded uh when the stimulus money opened up.

G

I've also included a handful of the local examples uh at the bottom there, and the thing I want to note is that the spending per capita is much higher outside the central iowa region. It's been much lower inside the region and that's due primarily the fact that there's nothing here.

G

So uh where are we at? What would it take uh the basics here? We need the disaster declaration that is done. uh The agency requesting funding must have adequate representation on the board. We need to create that entity. First, we need the support of the counties in the edd. We need concurrence from the state, we need to procure a local match and then we also need to develop the comprehensive economic development strategy, as mentioned.

G

So I put this together as an overarching timeline to help you get a sense of what it takes and the basics is. You have to understand. If there is support you have to create an entity, then you have to ask that entity to be designated and then once you have that entity designated, then you can get into fully operations um so phase.

G

One update we're pleased to tell you that all seven counties have passed resolutions of support unanimously um and we had a lot of conversations and we feel very good about the level of support that exists.

G

We also initiated a conversation with the state uh had a meeting with debbie durham. She expressed strong support for having edds. We described it as a no-brainer to us uh and when the time comes for us to get that letter of concurrence from the state sheet, because our conduit to the governor's office.

G

So excuse me looking ahead, we are now midway through phase we're into phase two. uh So far into phase two, where we're creating the entity, we formed a steering committee uh conducted a swot analysis and goal setting session with stakeholders drafted the vision, statement, goals, objectives for the seds and solicited feedback by a survey, and then in july, we've updated those vision, goals and objectives, and we are starting to review incorporation documents.

G

So I'm not going to read this to you. Hopefully you have all this on your screen ahead of you and there's printouts here. If you want to take this with you, but we do have a vision statement. This is required. It's not going to have a major effect on the overall operations.

G

Similarly, we put together goals and objectives. These are intentionally broad. uh A lot of projects could fit under these goals. uh So when we'll be asking for projects to be included in the sets we'll be asking which goal? Does it fit under um and that'll be pretty easy to find find.

G

So as we continue through phase two, the next steps include finalizing this as draft document. That's going to happen yet this month and in august, we'll open a comment period for stakeholders to look at bedsides, we'll incorporate the entity with the state, have the bylaws reviewed, submit for irs status and see concurrence from the governor's office and then the first week of september, we're reviewing improving bylaws, approving and reviewing the sets and reviewing improving the edd designation application.

G

If this feels like we are going blazingly fast, it's because we are working very hard to meet a specific deadline, specifically we're trying to get this submitted prior to the start of the next next federal fiscal year. On october, 1.

A

Governor quick.

C

A

You noted the districts that are out there and that the central iowa is not one, but I noticed that iowa state university was awarded some money and did you kind of explain since they're in story county? Did they apply separately or did they? How did they get that.

G

um Yes, they applied separately. More broadly, uh individual jurisdictions can go after these funds separately without an ed. It's harder to do so. You lack the support and the feds. Don't know you have the regional support for that's a regional priority, so there are advantages to having it within an edd which, if I go back to the funding examples, you saw that there was funding coming into the central iowa region, but at a much lower rate than elsewhere. In this.

A

I just want to if anybody was watching. I just noticed that right, horry county, that particular entity got.

G

Money right, that's a good case in point. It is happening, but it's not happening as much.

A

G

So, as I was saying, we're trying to work toward the a deadline of getting things submitted prior to um the october start of a federal fiscal year, and the reason for that is, we've been working very closely with eda staff. I want to make a side note. They've been really fantastic to work with at the federal level, they're encouraging us. They want to see this happen. They're helping they'll help make sure that we're going to hit all of our steps in stride.

G

By submitting ahead of their october start to their fiscal year, they're able to make a budget request for the next fiscal year uh to help begin that administrative match dollars for the local entity. So that's what we're working back from. I do want to note that a lot of stuff that we're talking about here can be changed and revised and updated once it's established.

G

So next steps, uh as mentioned we're going to submit the edd designation application in early september. This is a hurry up and wait scenario once we push it in, we wait for the review. It does take a while we're told it can take up to three months and needs to go be signed off on by a deputy administrator and the reason they take it so slow is that once it is once designated, it is a permanent designation.

G

It doesn't sunset at any point, but we're going to take advantage of that waiting period and start phase 4 in september. This is when we'll be meeting with eligible jurisdictions and talking to them about possible membership.

G

It is during this period that will begin conversations about funding commitments which we will need prior to applying to their participation program or their partnership program. What we're looking for is seventy thousand dollars in local funds on an annual basis to match the seventy thousand dollar annual grant awarded from the eda.

G

uh We do anticipate that we can be operational by early 2022.

G

So I'm going to tell them to frequently ask questions. Now: we've covered a lot of ground. I imagine there's a few things that you've had thoughts about um one of the basic ones that we've gotten is what is the relationship with the mpo and the edd? These are going to be separate organizations, different boards, dues, bylaws, etc.

G

There will, however, be a contractual relationship, uh we're taking uh the arrangement from the serp to certa, which is our central iowa regional transportation alliance, it's kind of a regional planning for kind of the ring around the metro, and we provide staffing for that entity on a contractual basis, even though it's a separate entity, so we're borrowing that model and using it again here so the edd will effectively hire the mpo to administer the entity.

G

How much will it cost, as mentioned, there's a partnership program uh that the eda offers to local edds? This is to provide that administrative support and that grant is up to seventy thousand dollars annual if matched locally by seventy thousand dollars, and that hundred forty 000 total annual budget would then help cover the costs of staffing.

G

uh The real question that you're wondering is: how much is this going to cost my jurisdiction? um A couple of notes here: there's no cost to you. If you choose not to participate, your participation is local decision. um There is no deadline to join. You can join at any time. um We have done some conservative estimates of 15 cents per person uh within your jurisdiction, uh so you can see some projections of what that would cost on the annual basis of the various size cities throughout the region.

G

We have started to outline an initial approach to funding because we don't know exactly when it's going to start. We also don't know exactly how many members are going to be in this organization to begin with. So what we're proposing is using that 15 cent per person as a starting point, and so in year, one which is a partial or a half year, how we're having the 15 cents saying, 7.5 cents per person and then the first full year of operation, we're saying it would be 15 cents per person um and then by year three.

G

We anticipate that membership will have solidified and so that any overages from those first two years could go into a reserve fund or could be used to reduce rates for year.

G

Three, so what kind of organization will it be? um We do have to have a legal entity to be designated in the application, um and our legal counsel will recommend a 504 non-profit. It does meet eda's requirements. It is much quicker and simpler to form than a 2080 which would require uh membership conversations to be front loaded and it would require resolutions of support from the 89 there's 89 cities in the seven county region um going within the 504 non-profit route, allows us to use a temporary board of directors to get us off the ground.

G

um It also allows jurisdictions to join at any time very easily. It's important to note that uh also going with the 504, we don't have to have fees and membership determined.

D

G

We can create the entity, have it designated and then have those conversations.

G

When will the board be formed, we're going to start with a temporary board of directors, our steering committee to be used to establish the non-edd designated uh legal entity, and then the permanent board can be established after the entity is designated as an edd and membership is determined basically until it becomes real, we'll use the temporary board and once it becomes real money starts flowing, that's kind of the point where it transitions to a permanent board.

G

um Once we are in that permanent phase, we see there being a board of director for the big full board of directors for big decisions. uh This would have authority over key decisions such as budget one-time stimulus spending, bylaws membership fees, said adoption, etc. uh We're envisioning one member per uh excuse me one rep per jurisdiction. That's a member uh plus one, each from uh the partnership uh in dmacc and isu.

G

We anticipate them meeting monthly excuse me annually and then the executive committee uh helps to oversee the day-to-day operations, oversight and guidance for the planning process. Administration.

A

Gunner, we have a question over here.

I

Yeah just a question gunner and I I know we've- we went over this a few times at the mpo, but uh we haven't talked about board steering committee and temporary boards, and things like that. So can we go into a little bit more detail who's on the steering committee? How many electeds are on there? um You know for us being a population of over two hundred thousand. Where do you see us on the executive committee? Is there an automatic seat? Is there two seats?

I

um Questions like that I think is is is important, at least for me. I can't speak for everyone up here, but I think if, if we're going to be the largest contributor which it looks like we are because we have the most population- I I would say our representation on the board should be uh reflect. That also.

G

So we're anticipating questions like this and the the biggest thing that I want to remind everyone is that this is going to be a very different organization than the mpo it. We hope it is not going to be a political body uh because the funding is between the individual jurisdictions and the entities.

G

So, unlike the npo, the mpo is a very political body, as you know, and and there's a funding subcommittee and there's significant influence at the local level of where the federal dollars come into the mpo and then are distributed within the region.

G

There's none of that political process through an edd.

I

The if, if but the the funding, still comes from the federal government as a political uh firm as you'd say so I know that you feel like that. It's it's not political in any type of the funding, but we still need to have current representation.

J

Is this essentially like for an edd, it's a prerequisite to be able to apply for funding. Is that, whereas with the npo, the funding comes here and then it's distributed?

J

So are you saying that what what this means is the city of des moines for a project would be able to apply because we have the edd, whereas otherwise we wouldn't or or we're.

G

Close yes at the mpo, the money comes into the region and then is sub-allocated out. That is a local decision influenced heavily by the board of directors and the funding subcommittee within edd.

G

That process is different rather than there being any local decisions at the board level about who applies how much who gets what those decisions are not at the local level uh and any member jurisdiction that did want to go for funding would have that direct application process with the federal entity entity and the edd's role would just be there to help facilitate and help guide and coach et cetera or to identify those opportunities in the first place.

G

uh Is it a prerequisite? No, um you can go after those dollars now, without an add it's harder to do so. I I started said stated earlier. uh There was a example up in story county where the local jurisdiction says yeah. We went after this and it has been such a headache and then we heard the exact same thing from the eda yeah. We have one in story, county gosh. It would be great if we had to be there to help make this.

I

What's more than just story historic county I mean there's warren county. There's I mean there's, there's multiple sorry josh, but there's multiple places where right where it's been given out. I think maybe everyone on here. I don't know. If the city of council bluffs, we can go back to the map. They're, not they're, not in an edd. They are. They are okay.

K

Directly, this new board, where we file them if they file or go through.

G

uh I think we think we can determine those processes, but the application right. The application would be from the city to the feds and the edd would be a support organization.

J

So hypothetically des moines is in the edd west des moines chooses not to join. What you're saying is that the benefit is, is that it's going to be easier and more likely to be successful for des moines. So what? If you're an entity that doesn't want to join until they're until you have an application you want to submit so des moines spends.

J

I don't know, I don't know when the next disaster will be, that we'll we'll open things up for for additional money. But this is an annual contribution right. So the morning spends the next seven years contributing we have our next disaster anthony which hasn't joined because they didn't want to and didn't see the benefit but then wants to join so that they have a better application.

J

What do we do, then?.

G

G

I think the way that that is handled is through the project list, and so you would have had your project lists on at the time of the disaster, and then there would be it wouldn't get on the right.

J

But I I guess, but I would prefer for for a gaming of the system like that right I mean if someone doesn't want to contribute because they don't see value, but then all of a sudden they see the value, because it's the same value that you.

G

J

Made the case for they just didn't, want to pay for it on an ongoing.

G

J

There there should be something to address that some sort of mechanism.

G

That's a really good question and I genuinely appreciate your challenging our thinking on this because we are new, we're still trying to figure everything out and maybe the solution would be to say it takes a year joint so that you know you can't just join at moment's notice. But rather, if you want to join, you could join us.

I

So a great question josh and I'll ask kind of a similar. So what how would you handle competing grants to say we put one in and can you put one in we've all got one in they're paid we're all in this? How do you score or who scores it, and how? How do you handle competing grants through this process?

I

I

Who decides I mean if it's not going to be the board uh or or the steering to I mean who, who decides it so.

G

I'll first, let me say the purest example or the the purest approach would just be to say: anyone who wants to apply can apply understandable, we'll go for it, and then it would be up to the granting agency to make decisions on funding.

G

Now, if the board so chose, they could put together a policy that tried to prioritize those applications, so they only had one going on. That would be a decision.

F

But I think you're missing your gunner that that denver's making those decisions, the federal government in the region is making a decision on who gets rewarded. Who does correct? So it's a pre, I I thought of it as kind of a free certification process, so we have to submit a project that we want in advance. That's the plan right, ced, yes and as pain members, I'm hoping if you could double check on this because is a great question.

F

When there is a cycle available, hopefully denver the feds are looking at. Who truly is a paid paying participant and not just that. We happen to be in a county that is qualified right, so that there's.

G

A distinction there there is- and we have had that conversation with the eda, and there is preference given to two regions that are showing themselves to be working together economically. Having said uh and having that support government that shows that, yes, this is a priority of the region. They've done the late work, but to josh's.

I

Point if certain folks don't join in and pay to be in this, but then I then, and then they decided to put the application in. How is the feds going to know that they're, not even part of this edd,.

F

That's what yeah same thing yeah. We need to.

I

Check that that's because that's that that's very important that you know all of us are going to participate, except for some, but when they get an application, then they're going to oh okay. Here, let me give you my three thousand dollars all right.

G

Has been acutely aware that equity is going to be a big issue among the potential participating members. um I do want to reiterate that the bylaws would be a place where a lot of those things could potentially be worked out and that that will be something that can evolve with the board, as it is placed.

I

I know, but at some point in time, you're going to have so many applications, somebody's going to have to decide whether it be the feds or this board right or okay. How are we prioritizing all these grants?

I

I mean there's just because you're, a contributing member, you know everyone's at equal playing field or and or does this board or steering committee or temporary board of directors or they they prioritize. Okay. This is in our region, we'd like to see one two and three, and this is how we'd like to see the funding. I I think that we need to before before. We would be all in and be very committal to this.

I

There's there's a lot of very important questions that uh for me that I'm going to need, I'm going to need answered and it sounds like we've had some really pointed questions that we don't have an answer for and we'll need to we'll need to get those details out before I I don't know it.

F

Sounds like it might come.

I

Forward above it, I don't know about anyone else,.

F

Might be helpful to see some other examples, ced yep are they? Are they categorized at all, or is it every jurisdiction? Has the ability to put a project or two or three on that list and they're treated all equally.

I

Yeah I mean that, but there's just no way you're ever going, I mean you can't treat everyone equal to every project I mean we might put 10 projects in west des moines might have one there's all 10 of ours better than the one project of of west des moines. I mean we've got to figure out a way how we prioritize it. I guess.

G

So I want to express appreciation because you're giving voice to a lot of the decisions that local jurisdictions are having to weigh in and it helps to illustrate the issues that we're have to work through. There was one other point I wanted to make. There was questions about whether jurisdictions were going to be in or not so far, everything that we've encountered. Our people are saying why not they're saying uh from what the dollar amount is.

G

The reaction that we commonly get is not oh, my gosh. This is so much money, but rather oh my gosh. I could I could put this in for 10 years and if I get one hit in 10 years, my return on investment is really really high. So from what we've seen so far we're anticipating higher membership, I don't anticipate there being a lot of jurisdictions.

G

Again, that's just a prediction. Take what's worth.

A

All right, let's keep moving.

G

uh So permanent next slide will the board of directors uh control grants branding. The answer is short. Answer is no not like the npo. I think I'm I'm repeating information here um longer answer most of the time, the predominant oversight on funding that the board will have was on the administrative budget and then in the cases of one-time stimulus money like we were talking about previously. uh That would be a local decision as well.

G

uh I just want to re-emphasize current applications are between member governments, and the granting agency will not need authorization uh from a border.

G

uh So what about the project list? uh We're gonna have that finalized and added as an appendix to the seds in early 22 after the entity is designated as an edd and membership is determined a benefit here showing the eda that the project is supported as a regional priority um and in times of media stimulus spending, products on the list will receive favorable and faster review.

G

So eligibility parameters, you would need to be an edd member, as mentioned, there are 89 incorporated cities within the seven county regions that are eligible. The counties as jurisdictions are eligible themselves um and then the projects, any project supporting the goals or objectives of the cd of the seds would be eligible to be included and that the members would also be encouraged to submit projects that support the investment priorities of the eda uh timeline is on. The right will be having those conversations over the next six months.

G

I'm not going to read each of these, but the federal government does have investment priorities at the eda equity, recovering resilience, workforce development, manufacturing, technology-based economic development, environmental, sustainable development and then exports, and the other thing that I will note is something that has been hammered home with us. In almost every conversation we've had with eda staff is, it needs to be tied to jobs um if you can show that your improvements are going to create or retain jobs?

G

That is a key uh consideration for them.

G

uh That concludes uh the slides I had prepared for you I'd be happy to answer any more questions.

A

A

Governor, thank you thank you, and uh we appreciate your not only being here and presenting, but take our concerns back and let everybody know what we're.

G

Yeah, I'm genuine in my appreciation of hearing all this that, as mentioned, uh we have an opportunity and we are moving at a very fast flip in order to get that opportunity open to the to the government as soon as possible. But we hear you let me understand. Thank.

A

You all right, scott. Let's move on to uh development intake priorities for policies, I'm sorry and tax increment financing, review.

F

Mayor, I believe that we've actually got this into two pieces, so we'll start with matt.

A

L

Matt, yes, so this uh I'll start we'll get this set up. um My presentation this morning is in response to a request that the council had of staff about at the beginning of the year regarding a developer default policy. This discussion came up, uh I think. In january february, staff was asked to go back and research that policy, which we've done with economic development, staff, finance and jeff's staff.

L

What you're going to see is we're recommending we stop short of an actual developer default policy, but create kind of a more formal step within our process. To have council provide input and direct staff on some of the more difficult projects that we work with before they actually hit your agenda for preliminary terms of agreement and certainly before a final agreement would come for you. So it's creating kind of a pause in our step to allow some more council input.

L

So there's a there's, a first point of contact a developer has a has. An idea: has a project has a piece of land to call up, aaron or me or carrie, or someone on the economic development staff. We schedule a meeting we come in and it's you know that first hour meeting's, really high level we're not getting into details, we're not offering up any tiff or anything we're trying to get the who. What when, where why the location market demand zoning parking financial ability?

L

So if you do have a financial gap or you think you might, when you get all of your design done what is out there to help you close that gap, what what federal state or local programs, what what private or or equity or debt are available that, maybe you haven't thought of yet and that's where staff brings their expertise into a project, we'll even look at the wow factor that happens a lot you get.

L

You get a projects that are kind of run-of-the-mill they don't quite move a needle, but then you get some projects that are like. Okay, that's that's so impactful. We need to roll up our sleeves and find a way to try to make that happen that we like to have more of those types of projects.

L

We analyzed two things both the developer feasibility, which I think is something that was really what what council was getting at back at the beginning of the year when, when the request was for developer default policy, so we we underwrite the developer and we underwrite the project.

L

So, when you're going to underwrite I've kind of set these into the three buckets of a green light, yellow light red light- and I I'm going to do that theme throughout the process- a green light developer, when we, when we underwrite that developers, it's a known developer with the track record of successful projects in des moines, it's very simple, hubble or jake christensen come in and they've got a 100 unit, multi-family project. You know that you know the developer. What they're developing is right in their wheelhouse. It's a it's! It's a green light.

L

It's a project that you would all feel car a developer, doing that project, something you'd all feel comfortable with, uh or it's a it's a developer new to the market, but with the track record of successful projects in similar markets. So an out-of-town developer comes to town we've researched, so a twg comes to town.

L

um Aurora's investments comes to town, we research them because we don't know them, but we will talk to our peers in the other cities, we'll we'll um we'll look for the news articles to see how they're doing in their other cities- and so we we want to make sure that we know who we're dealing with, particularly when they're coming from out of town um a yellow light, something that might cause a little pause but we'd still move forward with is a maybe it's a known developer. That's scaling up!

L

It's your developers, who are typically doing five million dollar projects and they come in and meet with. Staff and they've got a 25 million dollar project. We're like oh, okay! Well, that's good! But let's, let's make sure you have the ability to do that or maybe it's a a project. Maybe it's a developer that we know um but is changing product types. A an industrial developer suddenly wants to develop a hotel. Well that causes pause.

L

They maybe are great in their in their wheelhouse of industrial or or whatever product type it is and when they switch product types, and we do have a lot of developers that that dabble in commercial and residential and hotel um and they're very, very good at it. But when you make that shift, you have to make sure that the developer has the staff and the expertise to to make that shift um and then obviously a red light, which is kind of where we were talking about that led to this is a developer.

L

That's got a scattered track record they've got hits and misses they miss deadlines, um maybe there's straight up default or bankruptcies. That's really going to be a red light for us and you'll see in in these future slides of what we're going to do when we encounter something like that. So it really in light of just having in in in lieu of having a hard list that has those developers on it and we have to say no sorry you're you're on.

L

We have a developer default policy you're on the list, we're not going to work with you we're going to have processes along the way to have checks and balances.

L

So we've we've moved from developer feasibility to project feasibility. We we need to if we've got a qualified developer undertaking a project. Now, when you know the project itself is, is uh feasible, um so a green light project going to be a typical project type with a proven demand in our market standard sources and uses that we're used to seeing it's not a lot of complicated. You know: 10 layers of financing, a standard risk and a project request that falls within our tif policy.

L

Kerry's, going to follow up here with the tif uh discussion, we have a policy, a general framework of how we process tiff requests and as long as it's falling within the parameters that we're used to seeing it's kind of your normal green light project, a yellow light. That's going to cause us a little more work, take a little more time you might be in a softening or a new emerging type of market, the every every real estate. Every type of real estate goes in cycles. They go up and down. Linda knows this.

L

I mean it happens from single family to to retail, to industrial when there's when there's high demand low vacancy um developers swoop in start developing a whole lot of product next thing, you know: you've got too much product on the market and you just go in cycles. Every every real estate type does it. So you will you're going to look at where you are in the cycle of that real estate development. Are they catching it at the high or the low um we're doing it with hotel rooms right?

L

We started that before kobet we had a rush of hotel rooms, particularly downtown. It was very popular and then we all started questioning boy. Are we getting too many hotel rooms? We were. We were hitting that that downward part in the cycle, because we had just gotten we've gotten a lot of inventory, complex sources and uses. We have some developers who are really good at complex sources and uses.

L

I always use frank levy as an example that he can run a spreadsheet like no one else and he's he can balance 10 different different sources of funds, and do it really well some developers, don't have that track record um or a project that has a very large financial ass, that's in excess of our policy framework or maybe they're just unusual policy terms.

L

Maybe it's some policy terms that are putting the city a little more at risk. Maybe there's a request for upfront tiff, which we don't do very often where we're we have more up more at risk than if it were just a developer, generated or project generated tif or if there's city, land or other non-standard city participation in the request.

L

Are we there's an opportunity cost to that if you're tying up land in a complicated process and we can't project- and we can't- we can't do something else with it um and then what's a red light project, uh it's going to be a development. That's probably intriguing: we've gotten it this far, but it's just setting off way too. Many of those yellow light risks and we have in the policy that kerry's going to talk about. We have we have a debt review committee.

L

That's made up of a couple members of the finance team myself and kerry, where we review projects that fall outside of that. That tiff request a lot of the time. The projects that we're looking at to do that, maybe they're historic preservation um or they have they- have a significant amount of affordable housing in them or or or unusual site constraints, they're driving up the cost and therefore the financial gap. Those are the types of projects that the debt review committee is usually giving the nod to go outside the normal tif policy with.

L

But if we've got a project that is maybe doesn't check those boxes and is still not getting support from the debt review committee. It's a project that we generally don't want to move forward with.

L

So the process to the right is where I'm introducing a new step in the process that we don't typically do a green light in the approval process. It's basically, you were green lighted at the developer and the project phase that project proceeds through the normal pre-application conference with city staff.

L

They go through preliminary design, oed staff works through their financial gap, um kerry, aaron and myself have regular meetings with scott once a month. We've got our monthly one. Is this week where we review everything. That's on the oed docket. You know a green light project, we'll share it with scott get his nod. Then it's coming to you. It's coming to the council for first look at preliminary terms of agreement and then it's going through urban design review board and all the normal steps.

L

The yellow light is going to be a process. A project will go to the debt review committee. That review committee will then either they'll review it and they'll either recommend support or or sometimes we'll offer up recommendations to oed staff to modify the terms they come into us, and maybe it's a maybe we want to reduce the 20-year tif down to a 15-year tif or something like that.

L

More front load, less front load with debt review tries to tries to help oed staff get to something that's more palatable, but scott's more likely to approve that you're going to feel more comfortable with the risk that the city is is taking on the project. A project like that would then would get massaged and then come through the green light steps and preliminary terms of agreement.

L

The red light is where we we want to introduce a new step if, if, if the project just isn't able to clear those hurdles with the debt review committee and with scott in our regular reviews, because it has too many of those yellow light concerns, um we will not advance it through preliminary terms of agreement. It will not see a council, it will not see the council at that point and we're going to hit a new process and a pause in our step. um We've.

L

We did this in the past and it was probably it was when I was the economic development director and we haven't done it as much in the in now, but I think we're going to kind of reintroduce the stuff that we've done before, and that is when we get one of these projects. That's solidly in the red light and we're concerned. We like it, but we have concerns about it.

L

What we do is we set up a subcommittee of the council, the ward council person, the mayor and an at large to sit down with me and scott and oed staff, and probably nick and legal and and we will go through it step by step and we'll look for guidance from from that three-member council committee on what you want to do with the project.

L

Do you is it important enough in your ward and important enough in the city and impactful enough that, despite the risks you'd like to see it come through, or would you like staff to go back and modify some terms? Take some of the risk out of it make us less exposed on a front end or or or whatever it is that that we think we can over come the hurdles, and maybe we can't overcome the hurdles and you may you may scratch your head and think you know.

L

I just don't think this project is worth the risk to the city and to the taxpayers and direct staff not to bring it forward. We do we kind of pride ourselves around here of being able to find solutions to every project and every problem, but that's not doesn't necessarily have to be the case.

L

Sometimes a project just just bears too much risk to to us and the taxpayers and, frankly, to the developer themselves, and maybe it shouldn't move forward in our processes, and so that would give you that opportunity, without creating a hard developer default list, to take it on a project by project developer by developer basis and and help guide staff at that back end to help us get to a project that you're comfortable with and if you just can't get comfortable with it. We won't see the light of day and we won't bring it forward.

L

That's our recommendation and we've had a team from finance, oed and legal working on that. This is what we think is probably um the most palatable going forward and again, if, if you like this, it can be our policy going forward. If you don't, we can try it and if you say you know what matt that that that that process just isn't working, we want to come back and read and re-uh re-look at that developer default policy. We can absolutely do that too.

A

Okay, anybody have any questions at this time.

A

Yeah, okay, matt. Thank you. Thank.

A

D

All right, good morning, mayor members of the council, carrie cruz with the city's office of economic development. Thank you for the opportunity to present to you this morning. We thought this would be a timely opportunity to bring back an urban renewal and tiff kind of review refresher with the council. What is tiff, what does the city of des moines use it for and what are our our team's kind of internal policies that we follow when we're out negotiating tiff on a variety of economic development deals.

D

So what is tift, if is an acronym for tax, increment financing? It's a flexible economic development tool. It's one of the very few economic development tools that we have to be able to incent economic development initiatives across the city.

D

It works by freezing the property tax base in a designated area and it can only be used in a designated urban renewal area, so the process of adopting and implementing an urban renewal area and or a tif district within that area, there's a pretty lengthy, transparent public process that we follow in order to implement a new urban renewal plan for the city.

D

It all kind of starts, with our team doing research of a general area really looking at all the properties within an area where we're interested in implementing a plan documenting property conditions, evaluations if there's slum and blighted conditions making that documentation in case that would be put in the plan to be able to include a sum and blight designation in an urban renewal area working through uh goals and objectives for a plan to be put in place. Taking a review of the plan dsm our comprehensive land use plan.

D

Looking at the goals in that plan and how it would apply to the specific area where we're looking to implement a new plan, making sure that that's consistent about this point in time, we'll meet with the ward council member, make sure they're comfortable with the area we're looking at.

D

Is there anything major that we're missing within close proximity that we should take a closer look at and then at that point in time we bring it forward for the council to set a date of public hearing that really kicks off kind of the public engagement process that we go through to implement a plan. So at that point, once we've set the date, a public hearing we'll start engaging with the neighborhood associations. Sometimes we have one neighborhood. We might have multiple neighborhoods, we'll do joint neighborhood meetings, if need be, we'll work with.

D

If there's non-profits that are doing great work in the area, we might meet with them just to get their input on the area and kind of what they're seeing what they think would be great for goals to include in an urban renewal plan by state code, we're required to host a taxing entities, consultation meeting on a new plan, and so that is a formal meeting that is set. We send notice ahead of time that includes dmacc dart, the school district as well as polk county that often attend those meetings.

D

That's an opportunity for them to ask us questions. What are intended uses of any tif that we would be utilizing in that plan. They have an opportunity to if they have objections to anything the city's proposing. They can give that to us in writing, which would be presented to the council ahead of the the public hearing.

D

We also have board and commission review of plans, so the plan and zoning commission is required to make a finding that any plan that's being brought forward is consistent with the city's comprehensive land use plan, and then the urban design review board also reviews the plans and provides the council a recommendation on whether or not to approve the plan as drafted, and then we finish up with a public hearing here at the city council.

D

M

Taking this recommendation to p and z and urban design review board, why wouldn't just come straight to the council.

D

Council starts the process by setting the date of public hearing and then that's just another couple of layers of overview and providing recommendations to the council ahead of you having the public hearing and making a final recommendation to implement the plan. So pnz makes a finding whether or not it's it's consistent with plan dsm the comprehensive land use plan.

D

That's really their role to make sure we're following that long-term comprehensive plan with any urban renewal planning process, so everything's consistent with your long-term vision and planning, and then the urban design review board since they're charged with any project that's receiving tiff. They they provide a recommendation to you, the council, on. If the level of assistance is reasonable and appropriate, given the project, they also weigh in on the the project's design and quality, so they're they're involved in that review process for any projects coming forward.

D

So we have them review the plan from the very beginning and anytime that we make amendments to that plan. So they're just providing a recommendation to the.

M

D

We want to do it, they certainly could um and that's up to the council to decide whether or not you want to take that recommendation or not. It.

M

Seems like a lot of setups.

M

I question why even take it to pdc, if the council wants to go move forward on a project to create a 10th district and pnz says no, I I guess I'm challenged.

M

The council probably has their own direction that they want to follow, and you know sometimes pnc doesn't agree with council we've seen that before so I mean. If this is a process, I guess we could follow it, but I just think it's kind of cumbersome not to throw pnz in there. Just my importance. Okay,.

I

Thank you also.

C

N

I don't know why: why do we need that anymore?.

F

Real quick, please, I think carrie briefly mentioned this- that with the pnz. What I guess what's important is that in the urban renewal area plan you talk the plan talks about uses it talks about land use and that's pretty important to make sure that that's remaining consistent with what the comprehensive plan and what pnz understands a specific area to be. So it's more about the urban renewal plan and less about the tif district.

F

When it comes to the pnz discussion and then I'd say it kind of shifts a little bit with udrb, where there may be a little more focused on on the finance aspect of it. But the pnz for sure is is an opportunity to make sure that the urban renewal plan is consistent with the with the land use and.

I

Yeah, but is it isn't that the role of staff to communicate that with the council I mean these folks are a volunteer advisory board, both of them sure and we've put a lot of. um I don't know how delicately to say this, but we've dropped a lot of things on their lap. That recently, you've got a lot of new board members on that board that, I think sometimes maybe don't understand some of their role as as as their role as uh as an advisory board, or maybe they do.

I

But they've they've put a lot of things to us where, consistent with a super majority vote on items that I believe that we all voted 7-0 for. So we we've got this role of an advisory committee of volunteers.

I

That's maybe not on the same page, as is all of us that are sitting here, but we're going to need to run all these things through both of these boards. Where, if we're consistent with staff in in the seven of us, I don't understand why we would ever do that extra layer, as connie had said another step and continuing the process and and making it go longer. um You know with obviously with development time is money. We've all heard it we're adding weeks or months.

I

By doing it. This way, if we want to add something like that.

A

I've got to say something. I know I've served for a long time on on there and I got to tell you we never slowed a project up if they. If the city manager wanted us to review something quickly, we did it before the next meeting and and gave input. We didn't always agree with the city council, but nevertheless the city council went the direction they wanted to. It doesn't necessarily slow it up.

A

We appoint these people because that we think that they're going to be good in that and I've talked about all of us that have appointments to those boards and commissions, and- and I I I trust their input- I don't always agree with it.

A

As you point out, some of our 7-0 votes have uh have done that, but I appreciate their uh you know. uh Zboa is one of the boards that really bugs me and- and we've talked about that in the past, because they they do stuff and we can't fix it. uh Even if we totally disagree, but um it you know, I'd I'd.

A

I appreciate the input of of our boards and commissions and the people that have committed to serve on them and I don't want to dismiss their input.

I

I'm not saying dismiss their input and I'm in and I, with all due respect, I appreciate the job that you did on the pnc. I think it's my, I think it's much much different now than when you served on it to be perfectly honest, because I've watched some of those meetings and it's uh it'll it'll make your skin crawl with what things are being said and and how projects are going through this uh to this. It's not it's not on it's not the norm.

I

It's not how it's been and so we're just adding an extra layer of red tape to be able to do things.

D

Yeah one point of clarification: this is these are the steps we take the first time that we're implementing a brand new plan. So, each time that we amend the plan, which you see on a regular basis, it does not go to pnz as plans are mended. It's really that first step, here's the plan, here's the goals, objectives, land uses, zoning boundaries.

F

D

Boundaries making sure that everything's consistent with the long-range plan, because that the initial plan is really what sets the long term stage for the development and what we want to see occur in this area. um 20 years to you know, could be 30 40 50 years, depending on the designation that that plan has.

J

I certainly think that's appropriate for the initial claims and planning and zoning to continue to have a rule there and continue to give the council, as we set initial plans for new new uh new potential districts.

N

If I could just ask one thing in ward 2, I know that we have areas that really could use some cleanup and they would benefit from the reels. We have a couple. We've got the east 30th there along where hubble is.

N

I know that we've got some other areas on the north part of hubble, like where the quick start is. I went looking the other day trying to find on the city's website all of the tiff areas, and I had I never did fine. I just had to search and go back to council resolutions.

N

Is there some place that will that will show me where the urban renewal areas are because anything that's urban renewal is eligible for deaf, correct.

I

It's on page 17.

D

I don't know yeah, we do. We do have a map that shows all of them and we can make sure that we have that included on the website, for anybody to be able to easily find so we'll take a look at that, and I know it's. um We have it on the the city maps, but I don't know if it's a layer, that's accessible if you're not on the city's network. So I can check on that too, to see if that's something that could be added and yeah, often wonder why.

N

We can't get into those.

D

Yeah and one one thing I'll mention too: some of our newer plans so oak park island park, for example, there's a larger urban renewal area there, but we're doing tiff districts for individual projects as they come forward. So it won't necessarily always be the case that, because there's an urban renewal area there that it's also a tif district. Yet if there's a project that comes forward, that would kind of check the boxes that you need in order to legally be able to use those types of incentives, then yes, it would be.

N

Going to the assessors page and see.

D

Oh yes, yes, it will have a tag on that on the.

N

D

Yep, so it could vary by distance, but yeah we'll make sure that we have a map or something out there. That's easy to find.

I

So carrie are we any closer? I know that we have one large tiff area in in ward 4, that's really the southridge mall area. Are we any closer, and I know aaron- and I have discussed this of developing um other corridors that we see you know a lot of the big box stores are gone. um You know that we we need a jolt of uh incentive to get the developers to figure out what we can do, whether it be army post, road corridor southwest 9th corridor southeast 14th.

I

um Those type of when can we come up with, and maybe I can work with scott and aaron of um when can we come up with something that would incentivize that area? So we can see uh some better development and and really get some things jump started in that area.

D

Yeah, our uh director recently uh mentioned that same area along 14 that you just mentioned, so our team is starting to look at those commercial corridors all across the city, including that one we do have a few urban renewal plans that we're working on. Currently we have one up on douglas avenue that we're working on there's one in the drake area that we're working on the airport area has one. So it's on.

D

It's definitely on our list of things to take a close, look at and see if there's an ability to work more on those commercial corridors that where the our comprehensive land use plan has those commercial nodes or those designated nodes in the plan, which is what directs us to look at.

I

D

I

What is the thinking behind? For the last seven years, we've worked on a southwest ninth revitalization uh portion of it. You know recently josh and I have partnered with that before that it was christine, but none of that is included in any uh urban urban area.

I

um I mean we're looking at seven years since we've started this process and staff hasn't come up with anything for that area and we we've seen very limited um development, and I think that that would really increase um some of the eyes of some developers that could possibly come in there and- and you know, help us help us keep the momentum going. We've had a few things, we've had a few things, get cleaned up in that area, but uh I mean what's.

A

Your thoughts on that.

D

Yeah, I think this the southwest night, the friends of south west, ninth funding that the council initially initially set aside for that to get kick-started was great. We saw some really great revitalization grants that that group was.

B

D

Do with those funds? um It's definitely an area that I think is one that's worthy of being looked at for a potential urban renewal plan. It's on the list of many areas that that have needs honestly, and it does take months of time to do the research put a plan together and I think, what's challenging too you'll see in the next few slides.

D

We have 20 urban renewal areas across the city right now, the more you continue to spread out areas of urban renewal opportunity for investment, the less concentrated your efforts are going to be so you're going to see that being spread out more and probably more targeted in areas where economics are going to be stronger for a private entity looking to invest, but.

A

You know, and let me throw into this it's it was interesting to me and- and I think that uh I've watched uh southwest ninth uh in the work that all of you guys have done on that. But I remember back in the uh late 80s 90s early 2000s, and then we wrote the 2020 plan and identified southwest 9th as a very important corridor with commercial nodes. And what should that look like and of course here we are now 20 years later and it has yet evolved again and it's sort of like jump starts it.

A

You know it's okay, we got something going, but no that didn't work, and so now we're gonna do something else and uh we're gonna revitalize. No, I guess we're not gonna. Do that now we're going to totally demolish and tear it down and start over with some other kind of a development.

A

It has been an ever-evolving corridor and I don't know how we we get our arms around it to try to figure out what it looks like long term and put development in there. That is long term, as opposed to you know, just sort of a hit and miss kind of thing. But I I'd love to see the process and see how that that could work for the long term as opposed to just one little deal well.

I

The 20-year tiff in that area with that I mean that that gets us that gets us at least 20 years out on a good project that we can put in there. I mean that. That's to your point exactly I mean I I I agree: we've seen him come we've seen him go, but there isn't any incentive to to stay or to do a successful development, and you know I've asked this for seven years I mean we went, got a smith in that area. I mean it's, it's probably I don't know I mean I.

I

I just think it's time for us to really look at the corridors and you know downtown's on its own. In my opinion, and it's I understand it's a neighborhood, and I understand that you know we're doing a lot of things. We've got a significant investment in the market district we've got a significant investment all through the western gateway, but I mean we've always said we want to get in the neighborhoods in the in the main corridors.

I

Well, for me, I don't have any incentive for any developers to get into those corridors, and- and I'm here publicly to ask you, scott and- and you guys to to make that happen, so we can get some significant investment in that area. That's that's long-lasting, as the mayor to this point go ahead.

J

But I just want to read: I mean I agree with joe particularly right now we're making major investments in the crate park, which is sort of a gateway to that southwest. Ninth corridor. I mean I, I think, there's real potential, particularly in that corridor, where we don't have those tools, and so I'd like to see us look. Look for something like that in the southwest.

J

K

Priorities can I just sense the process: okay, because there's corridors all over this whole city. I can name a five that, besides southwest, so what is the process that you have to go through to develop that we can get out into those corridors hubble's one from easton up, you know to probably east 30th. I mean.

K

Yeah, but I'm just saying: where is that there's corridors all the way along the roads, so how so? How do we identify them and how do we get it in place and how many can you have and is it staff? Is it? What is that process that holds back doing more development within these nets.

D

Historically, a lot of it has been council priority, driven as well as staff recommendations on kind of where to implement urban renewal plans, but we've also had project driven purposes for implementing new plans. So if we have a worthy project, that's got a location, that's not in a current urban renewal area. It's one we'll bring forward for your consideration, um but there are, like you said, there's so many corridors across the city. Are we limited by state law?

D

We're not limited in the number of plans we can have, but I do think it's really important that we're very for this tool to work the best that it can. It's important that we're very strategic with the tool and that we're very responsible with the tools so we're not just making the whole city one giant urban renewal plan.

K

We need to be very easier. We need to be very strong, I'm just saying that. That's why I just understand the process.

K

If it's the time of you know how many can we have is it do we have enough staff and because it does take time or what are the obstacles to create the corridors out in the neighborhoods that we say we need redevelopment understanding.

D

Yeah and generally, I would say the the length of time for us to be able to bring forward a new plan from start to finish, you're, looking anywhere from probably seven to nine month process to get through the entirety of the implementing a brand new plan.

F

Manager- I don't- I don't want to underscore that we're in a transition at this point, because I'm hearing from almost all seven of the council that you're wanting to to be more proactive in economic development versus reactive, and so I'm going to be very clear with you. No, we don't have enough staff to go out and do all the corridors that I have a feeling. You would like to see proactively going out and finding sometimes it's going to take going on finding developers and finding projects that you know would fit well within those corridors.

F

So that's that is something very new for des moines. um Typically, it is truly a response driven with then looking at what our land use plans and our other plans look like to make sure they're being consistent.

F

This is an opportunity for us to to to take a southwest nine and actually say here's the plan for it and we have a limited amount of time. Typically, these are going to be 20-year time frames in a window of only 20 years.

F

So if the current property owners are not in arrested invested in those plans, we're going to have to be more aggressive in in our tactics in that sense, possibly getting more uh buying out of property things of that nature with additional resources. So it is a different approach to go proactive with these types of corridors.

F

uh I think that, to be honest with you, I think it's time to do that. I think that is smart, but it is different than what's been in the past and, and it is again a 20-year window, so momentum is what was brought up is going to be crucial, the project generated uh or a project that comes to us. We don't have to worry about that. We've got a property owner that says I want to do something great. This will be different. This will be a plan for a corridor.

F

That says we need to entice and bring new partners into uh the.

I

F

And I think it's the right way to do it, though.

I

Just with that being said, you know, southeast 14th has had some interest in some of the you know. I have many vacant properties on there and it's not fair to to to the rooftops that I have in that area that you know everybody has just left that area because of whether it be online buying or whatever you know the big box stores are leaving. So we've got to find an alternative use for those stores. They can't just sit there empty and vandalized, and we have to do a proactive way of we've.

I

Had we've had developers come and talk to us about some of those buildings and strip areas, and so now it's time to to to really sit down and put a pencil to it and make make those things happen, because otherwise we're going to lose a certain part of our city.

I

If we don't entice better development, it's I mean slum and blight is going to stay and and no one's going to want to invest in that, and I don't want to see that, and you know I would encourage my at large council members and obviously to drive around in that area and see what I'm talking about I've seen it. I know, and it's you know it's sad to see, but we have to be proactive and we have to do something and I I can't sit on my hands and and wait any longer.

I

I know it's seven to nine months and I know aaron and I've had many conversations about this. I can't wait any longer, so we're gonna need to to be proactive, and you know I I'd like to see a timeline of when this could happen and and when we can, when we can move full speed ahead on a couple of these corridors,.

K

I think, though, the to what scott brought up that we as a council are going to have to if it's going to take more staff.

K

I think then we need to invest and get on the proactive end of it to get people out there recruiting and getting the businesses and how we want it to look instead of just taking whatever somebody comes in. uh I think we need to be diligent on how what is that we're going to do get the best return on our investment right, and I would I would be supportive getting the step, that's necessary, because, quite honestly, if we can redevelop some of our areas, it more than pays for any additional staff.

N

Which I could just.

K

That's my take on it just.

N

Say a couple of comments I remember in 2015, when I sat out in the audiences that council discussed the spider webs for dart and said we want to have affordable housing along the dart routes.

N

We looked at those chris coleman was instrumental in getting those spider webs and I I didn't necessarily agree with those spider webs, because I I think we've we've eliminated some people from getting tax abatement, but in any case one of those areas was sixth avenue, and you know, we've got the sixth avenue corridor that goes right up to the bridge that we've done all this redevelopment in then highland park. I worked really hard. It took me.

N

I think I worked on that highland park tip for a long long time, and I kept saying when is it going to happen? When is it going to happen, but it it happened, but now we have that area from the brew from the river up to highland park that is full of homes that there are vacant homes. There are vacant lots along there and you know we just opened up a three million dollar park at riverview and we have empty buildings there, and I've said we should be focusing to me.

N

We should be focusing on that area to make an urban renewal. That's an ideal place to have affordable housing. It's on the on the dart route. It's easy to get to and we've not done anything. So I would like to add make make sure that we continue on that. That seems pretty important because you've got it to the south and you've got it to the north, and then you have nothing, but vacant lots boarded up houses.

N

D

N

Still homes there that people live in, I'm not discounting that, but there are, there are boarded up houses and there are vacant houses. And then, when we talk about the tiff, I know that I haven't had a developer that you visited with a couple weeks ago and it's in a tip area, and but they came back and you said, there's really nothing we can do, and that was that was a disappointment. And I know that's a different conversation than what we're having today.

N

But just because you're in an urban renewal area doesn't mean you get tip.

D

Correct our staff recommendation will be based on on a true demonstrated, need of public assistance going into a project. So if it's an industry, that's highly profitable and there aren't major infrastructure lifts or um if you're, not undergrounding, utilities, something that's uh there's got to be a gap. There's got to be a financing gap, a demonstrative financing gap for for us to make a recommendation to use those limited dollars.

A

If I might throw one other thought in- and we have so many different tools that that we try to use to push areas forward and some are organized as a result of neighborhood work, uh beaverdale is a good example. They did a smed, sherman hill did a smid and they have been successful and they continue to do it. And I remember what sherman hill used to look like 25 years ago, and everybody thought they were going to have to knock everything down and start all over, but they redid all those areas.

A

And I look at what happened up in beaverdale.

A

You know it was struggling a little bit, but that whole area at urbandale, avenue and beaverdale on all the way around this mid worked, and so I think, there's a variety of tools and we just have to see what the interest is of a certain area, whether it's a neighborhood, whether it's whatever and those two cases. Those were neighborhood associations that came forward and said. We need to do something to this whole area and we want to work. What are our options?

A

And I think that.

D

You saw the same thing at ingersoll grand as well that that smid was created before the tif district was implemented and put in place and that that was decades of work from the neighborhood groups in that area as well. Yeah and.

N

Me if I can just get one final comment, we're not in the real estate business. We can't tell a private property owner who he can sell his property to a private property owner can sell his property to anyone. He wants to sell it to and what they do with. It is a private issue. It's not something that the city gets involved in.

I

Yeah, but we get to we get to choose how your staff and all.

N

I

Us get to choose what incentive we're going to do for certain.

K

I

Right of projects.

C

Things like that.

I

They can buy what yep linda's absolutely right. You can sell it to whoever you want and if the land use fits the need, then we can't say you know you can't do x, y or z, but I mean that you know we also get to choose what type of incentive package we're giving correct. Also.

N

That's what we get to do.

I

But I mean to not even have a choice in some of the worst slums light areas in our city. I I just don't think that that's fair to to to those rooftops and that corridors that that we've we've you know identified today and I think that we need to have a plan to come up with. Let's fix it.

I

F

I could proactive. I.

K

Was just gonna say we just be proactive and have plans for the net. You know what is the because everything could be a little different in each area, so I think we just need to be proactive and I would be supportive getting whatever we need to do. That.

F

So timing is good- um let's, let's plan to have, of course, a bit large portion of our october quarterly work session to talk about economic development strategy. This was meant for more of the basics and understanding of how it works, but I think you've all shown that you grasp that fairly.

F

Well, so we'll go through the rest of this presentation, but we will come back with more strategic, but I do want to underscore that, and it somewhat got brought up that there are other times within tif districts where a project doesn't pencil out, because the tif is predicated on growth in valuation and so turning industrial buildings into parking. Lots doesn't get that done, and so we've got to be creative on probably bringing additional resources other than tiff into the conversation ie or cip.

F

So we will need to look at what roads and utilities are in the area and whether or not they need to be engaged in the planning and the strategy as well, because the tif itself may not be able to show that the growth is going to pay for all.

K

The infrastructure that's necessary.

F

It's a balance, yeah and we'll bring it back in october. If that's okay, then so.

I

You're gonna bring some of the specific areas that we talked about in october. Then it's another seven to nine to twelve months before we before we get anything else done. So then, by that time, the people that are interested in the property on southeast 14th we're looking at another year down the road before we ever come up with the decision or actually it just we're, just kicking the can down the road. Again like we've done, and I yeah that's fine.

I

We can talk about it, scott, but I think that uh you know I I don't know how else if there's people that are interested and we can incentivize them to really kick off the southeast 14th corridor like we know that there is folks that are interested.

F

Sure let me let me ask this we'll do very quick analysis on the slum and blight question, because I always look at the borders and work my way in of what what are the limitations that we have to work within and if we have to work within 20-year economic development, then we have to start the clock at the right time and we have to be ready to move with the with the current property owners.

F

If we're going to be limited to 20 years, if we have the ability to actually designate slum and blight, I'm with you, let's just get, let's just put what we need to and resources to get slum and blights designated. But that's not that. Let us do that real quickly. Let's.

I

See, let's get in the car and we'll drive and I'll show you where I agree where there's slum and blight and there's been slumming vacant buildings for years now and I'm tired of looking at it- and I so and I know the people that I represent, that is the biggest and the the mayor, and I heard it when we were up for re-election.

I

The the folks on the on the southeast side are tired of the empty buildings in the development that is not non-existent, going there other than people just leaving, and if we don't step up and do something and we we said it at every neighborhood meeting that we were gonna. We were gonna work hard to get this done.

I

Well, it's two years later and we haven't did anything, and so I want to I I I've said it from the very beginning and, like I said, and I've invited you and I've invited aaron to get in the car and I'll drive you where I believe they're slum and blight and there's vacant buildings and been that way for years, and we did nothing, allow them only just to sit vacant.

I

That's not okay, we're doing a disservice to to to our residents and that's that is not all right and you know what we're focused on downtown we're focused on new development, but we, you know, we say we want to help out the neighborhoods and the corridors, but we did nothing, at least in my ward. We did nothing so we have responded.

F

C

F

We've responded to every property owner that comes to us. What we need to do is be proactive and say: we've got a plan and we need your help as a property you're.

I

Going to get developers that are going to step in they wouldn't look at the south side because they understand okay. You know there is an opportunity to revitalize this area and be able to use some of the tiff to help with some of the and maybe other.

K

Others right it's going to take more than that to get in some of our areas.

F

Would be a good start.

K

Yeah, but it's absolutely probably going to take more than just 10, so we have to be prepared.

I

I mean there's houses on southwest 9th when, when we went through seven years ago and identified properties that we'd like to see gone, there's two of those houses sitting there for sale empty.

I

That me and my wife walked through and said man it'd be nice to get rid of those and they've sat there empty and for sale for probably three months right now and you know it and but you know, they're they're going to get sold, they're going to be rentals again and and we're going to be in the same position that we've been in for the last 20 years on that street, because we refused to look at that corridor like I've said in you know I I know I'm not the brains of economic development, but I feel like that.

I

I've watched it throughout the entire city when you put a tiff area in whether it be merle hay, whether it be ingersoll, whether you put on put these in you see where the developers go and they and they're incentivized, and they do it. Well. I want that to happen for the for the residents of southeast south because they deserve it. Just like everyone else in the city, it's not fair to them and we're giving them a disservice.

D

All right, we will continue to take a look at those commercial corridors and uh plan for an october quarterly work session on it.

D

um I'm in the interest of time I'm going to kind of fly through a few of these so uh length of a tif district's going to vary depending on whether or not you have that slam and blight case that you can make in the urban real plan or if it's really economic development.

D

This is a tip example. You've seen similar examples in the past just showing that how project generated tax increment is calculated from what a project was assessed at the beginning versus after the project. This example is a little bit over simplified, but for the interest of explaining how that increment works at the beginning of the project, it's assessed at 100 000 at the end of the project. It's 300 000 property taxes that that property would have paid at the beginning, approximately 4 400 after the project, 13 200..

D

So there's a growth in taxes there of about 8 800 per year. What's important to recognize is that that full growth is not eligible to be um directed into the the tif special revenue fund, a portion of those dollars, and that growth is still for protected levies, that a variety of taxing entities have so for the city. That's our debt service levy, the school has um instructional support, levy and property plant equipment, levies that are protected.

D

The county has a debt service levy, that's protected, so in this example, a growth of about 8 800 in taxes above the base. uh 7200 of that would flow into tiff if needed. 1600 at a minimum is protected and will continue to flow to those specific taxing entities. The other thing I want to mention, too, is: if the city had an agreement to rebate a hundred percent of the project generated taxes.

D

That would be the 7200 of that growth, but if we were to enter an agreement that was rebating back 50 percent of those taxes, the other half of that that we don't certify are asked to be directed to the tif bond will flow out to all the taxing entities, on their pro rata share of their proportionate share of the the property tax levy.

D

So it's important to know that that any dollar that we're requesting to use in tiff there's a direct impact to all the taxing entities, kind of operational levies for us, that's our general fund. So, on the next slide here we show how the taxes are distributed, so the city being 34 percent of a property's tax liability, every dollar that we pull into the urban into the tif bond 34 cents, that's coming out of our out of our operating levees. So that's important to understand that.

D

That's why we have to have a very delicate balance of the amount of tif that we use and certify versus what gets released if we're able to release some of that growth in valuation. It's a direct benefit to us and all the taxing entities, so how is tiff used in des moines? There's really two kind of primary categories for how we have traditionally used tif for the city of des moines. Our capital improvements project is one major area where tiff is utilized.

D

You can see a list of examples of projects that we've utilized tif4 in our cip streets. We've got our repaving program. Downtown we've got second avenue up in central place, repairs. We've got some beautification efforts going on downtown right now with the the banner arms that have different banners throughout the year downtown they're doing some repairs and replacements of those.

D

The parking system receives some funding from tiff the bridges, downtown, civic and recreational examples. Principal park improvements are funded partially through tiff, the botanical gardens expansions. The restrooms at the state park are some examples of that.

D

The other major category is the one you're used to seeing more frequently on your council agendas, which is our economic development projects, which you see through urban renewal development agreements. Those projects need to need to check various boxes in order for the for staff to be comfortable, making a recommendation to you to provide diff incentives into those, whether it's increasing the tax base growing and retaining jobs addressing slum and blight extraordinary development costs. Most of those discussions are highly focused on gap financing.

D

So, as I said earlier, there really needs to be a demonstrated need for that public assistance.

D

You know any project coming in the door that is financially feasible without the city's help. That's not one that we're going to want to bring forward and use those limited dollars to assist, get completed.

D

This is the map that we'll make sure is on the website so that everybody can easily find uh shows all of our current active uh or all of our current approved urban renewal areas across the city, primarily uh centered around our commercial nodes and industrial parks. There are a few um kind of one-off project driven urban renewal areas that have been implemented as well and.

N

I do appreciate the ones in wood too: it has, it has definitely helped.

D

We're happy to see the this energy. That's um especially oak park. Island park. That's been a great success story in such a short amount of time. Just some high-level urban renewal area statistics. We have 20 total urban renewal areas currently in the city. 16 of those are active with an economic development, urban renewal agreement in place and construction that has started. So we have four areas where we don't necessarily have construction that have started yet active development agreements and project phases. We have about 110.

D

It really depends on how you count but 110 agreements that we're calculating annual or semi-annual payments for each year. I do like to point out one like one. For example, graystation has hundreds and we'll have hundreds more parcels as part of that calculation, which counts as one because it's one agreement in here.

D

So, uh while it's 110 projects that we're calculating current payments for it's um there's a lot of work behind the scenes to make all of that go and our team does a great job with that and then overall utilization of the increment that's available to the city across all of our plans across the entirety of the city. In this current fiscal year that just started we're asking for 42.3 percent of the total available increment.

D

The bulk of the increment being released is from downtown metro center, that's being released to all the taxing entities, um I think about 80 percent of what's being released, is from the the metro center billion. So we do have some plans that are nearly maxed out some that aren't using a lot. But this is how it averages out across the entirety of the renewable plans across the city goals and objectives of tiff. A lot of the same reoccurring themes that you've heard from before.

D

I have a couple up there that are highlighted in green as areas that have been areas of focus for us, since our last update with you a few years ago, so encouraging equitable housing opportunities. Any kind of housing project that's coming forward, seeking public dollars or tif assistance, we're looking for a variety of both.

C

D

Types and a variety of affordability across those, so that's been a priority for us, as we've been negotiating with tiff and then enhancing sustainable development, so making sure that we're getting the highest quality and sustainability that's feasible for a project because they'll go forward if they're getting public dollars.

I

What's the dollar amount that goes into our use that we put back into our general fund of all the tips? Do we have a dollar amount.

D

Yeah but then it's only 34 of that right, total because there's people, because all the tax committees get a share of it. So we only get a slice of what gets released, but we can get that number for.

I

You, yes, I would like to know what that is. Yep.

D

Tiff best practices just making sure any project receiving public dollars is following good public policy criteria that it's meeting the goals and objectives of the plan and of the city council um at or below 15. This is a a general kind of gut check internal policy for for our team. That doesn't mean that projects um won't necessarily be above that request. There are reasons why some projects have a need to go above and beyond.

D

15 of the total financing stack some of those same things I said earlier: major infrastructure lifts major extraordinary costs if you've got a historic building that has severely deferred maintenance on it. Some of those are very costly in order to save a building that we think is worth saving.

D

So there are definitely reasons to go above that, but that's kind of our gut check project generated is our preferred structure, so we mo the most most of our deals that we bring to the council you'll see in the financial impact statement that it says a project generated schedule.

D

What that means is that we're we're rebating back portions of the taxes over time as that growth in taxes comes online rather than a lump sump front, lump sump amount up front or any kind of frickin loan up front, but there are some cases where we will have some upfront funding requests and usually there's uh infrastructure needs or major costs associated with those requests.

D

But we try to highlight that in the fiscal impact section so that you know if it's project generated it'll pay itself over time or if there's money up front, that's being asked the debt review committee matt touched on this, but any project that is exceeding a request for 15 years of assistance at 75 or more above what it would generate. That's what triggers us to take the project, the debt review committee, that has city manager's office, economic development and finance representatives on it, um that's kind of a threshold for us for like well.

D

You know this project is asking for a pretty high incentive. Let's get more eyes on it, let's get more brains on it. Let's make sure that we have more of areas of expertise within the city internally, taking a look at that and making sure that we're bringing forward the best structure that we can for your consideration and then. Lastly, yes, I can't.

O

Tell microphone.

D

Maybe if I go closer to the microphone.

D

I think I'm a soft voice, so it's going to be hard to hear um and then lastly, I'm going to.

O

Be using that microphone in the evening, perhaps.

D

And then just the last bullet point making sure any developer applicants not in breach of existing agreements that they're paying their property taxes on their other projects, that they're not um delinquent on any debt if they have loans with the city.

D

Anything like that, if those cases exist we'll be sure to raise those issues up, there's an awareness of those and then this goes back to kind of our best practices earlier, making sure that any projects that have housing that they do include a mix of affordability and a mix of unit types on the sustainability side. Specifically, what we've been doing is having projects comply or sign up for the mid-american energy, commercial, commercial, new construction program and making sure that they're exceeding applicable energy codes and or sustainability requirements.

D

So we've seen some really interesting partnerships over the last couple of years, partnerships with dart, we have a project, doing solar and then we've had several projects that were able to at the point in time when we were entering into the agreement, give us specifics on if they could exceed energy code by 10 to 20 percent.

D

That can be difficult depending on how far along a project is in designing their their their project. They may not have those specifics at the time that we're entering into a development agreement, but those are areas that um we've been really focused on making sure that projects getting incentives are definitely hitting those two best practice areas.

J

And are we at a point where we can start specifying that, for example, we've been targeting 10 affordability, but we don't always specify. Is that 80 percent in mind is 60?

J

Are we at a point where we can start specifying so that we set up that expectation up front so that projects are designed to meet that rather than negotiating on the back end, because I think it's easier for projects to immediately just set a very clear expectation.

D

J

Same on the same on the efficiency side,.

D

Yeah I'd be interested to know um from kind of a council policy standpoint. If that's something that you would like our team to pursue a recommendation to you for a policy on affordability requirements, the work that we did with virginia tech on the workforce, housing study and the um the follow-up with the recommendations from czb.

D

What what those recommendations stated were for the city to have a goal of getting to 20 of the units being at 50 or less of the area. Median income currently we're negotiating on a case-by-case basis and trying to make sure we have a mix. It's been a challenge to get down to that 50 percent, ami or less level. 65 percent we've been easily able to negotiate those in, but I think, as we continue to build those expectations, it would be nice to have a policy around that.

D

It certainly makes the negotiation side much easier if we just have a housing policy on what we want to see for affordability,.

J

I think that that recommendation of getting to 20 percent at 50 of ams, I think, makes sense for us to be working towards so I'd like the policy and maybe steps for how we get to that.

J

Get to that as the end goal is what I'd like to see.

D

Great we'll definitely um work continue to work on that and bring something forward for your consideration. On that front, that's we launched the affordable or the workforce. Housing study, unfortunately right as the pandemic was kind of unfolding, and it's definitely time for us to get back to that topic and have some policy considerations around us. I appreciate that comment.

K

It would just be easier that way up front and then.

D

Any other questions of tip urban renewal and or process.

J

So are we gonna have a similar policy for the efficiency sustainability piece? I mean, I think we probably could so that we're not negotiating that on a case-by-case basis as well.

D

Ideally that that would be what we would like to see. It is difficult to negotiate on a case-by-case basis. I think in my experience, it's also not being an expert in that field, in particular, but a one-size-fits-all policy for all construction types and building types. I think it's going to be somewhat of a challenge, but we have engaged in conversations with the city's sustainability manager and with jeremy. We'll continue to do that, and I know there's also talks on the tax abatement side for sustainability requirements.

D

So we want to make sure tiff is meeting or exceeding wherever those policy kind of decisions line up with the tax abatement side as well, so um definitely want to continue the work on that.

J

And what about other practices? Could we like prevailing wage, for example? Is that something that that could be part.

D

Of I'm going to look at our city attorney for that.

P

One of the supreme court.

K

I think there's, if there's any other things that would make for what you are doing with developers, instead of a clearer picture that you always have to negotiate. If there's any other policies too, I would say to make it easier and more streamlined.

D

Consistency and predictability are.

B

D

Things for development yeah, the flexibility is also a big piece of it too. So we'll definitely take that in mind and come back with some recommendations.

D

Thank you great. Thank you.

A

All right we're going to jump into intergov.

F

The council is able I'd sure like to because this was requested by several council members yep. Let's go.

E

E

Good morning, good morning morning, new york city council, I'll I'll step to the to the microphone as we go forward, intergov the permitting and licensing software placement is now live, so it is down, live and operating. We wanted to give you a an update on some of the pieces of that.

E

However, it's been a team effort um and you've seen these names before, but specifically, I want to call out the special teams, and those are really the frontline people that worked on the project from the beginning, also beginning in january, started testing the software and have been the ones that are on the front line now using the software.

E

Quick review- and I I won't go into this in depth- you've seen this before it was approved by you all in august of 2018.

E

um estimated a two-year implementation and a go live late in 2020, um and then we had some challenges coded a major security incident and so the go live, got pushed to june 2021.

E

The project goals were to replace tidemark, which was an outdated system, end of life, to improve convenience and efficiency for staff, to offer customer self-service and streamline transactions and reviews, as well as increase mobility from field to office.

E

Another piece of that is providing information on trends and performance, and I think one of the challenges of that very old system was when we were asked for information that was a very manual process to collect that with intergov. You can see on a dashboard what the inspections are for the day. What the uh requested inspections are, what tests do inspections and you can also see completed inspections, so we're able to provide performance and trends on an up-to-date and really live.

E

Situation go live the cut over to the new system took place over the weekend of july 18th to the 20th we converted over a million legacy records. The migration of legacy reports and attachments is still in progress. um We had 2.5 terabytes, so that's a whole lot of stuff to to come over.

E

uh The initial cutover identified 165 issues. Many of those were addressed in the first few days. That's not unusual to have that many issues on this big of a change um and work continues on current issues. We currently have 39 high priority issues, so it's come down, but as we identify new issues, uh we continue to work on that because of that, some of the areas are um dealing with workarounds. Until issues can be resolved.

E

And, as I mentioned, a big change so from a 20 year old system to something new, so not from something that was current day, which presented us with opportunities to make changes in processes and also as we go forward, that will continue as we work in the system will continue to to make changes.

E

Some of the challenges of that are the division and department's time, um as I mentioned, all those frontline folks and those those areas of uh a focus were permitting development center, the development services as a whole neighborhood inspections and the city clerk's office. They were doing their regular jobs and working on converting to the new system.

E

The other challenge is, we have one fte system analysis, so the changes as they come have that bottleneck so we'll continue to implement and make changes, but we have we have one system analyst and then that amount of legacy data in a conversion like this, it doesn't match up one to one so you're still for a while dealing with old legacy data that was started because we moved forward to go, live with just basic functionality.

E

There's still implementation work. That's that's going on.

I

One person handling this, uh that, through inner gov or through somebody that can help us get through some of these issues.

E

So yes, in a way um we were very lucky and that the person that we hired had intergov experience. So that's been really helpful.

E

The other thing that we're doing is we're hanging on to tyler implementation people, because just bringing in a contractor that doesn't know the intergov system, they wouldn't have the expertise to work within the intergov system, but we're hanging on to tyler implementers that can come alongside.

I

So like, as we hire a summer employee of some sort, you know it's a seven month employee. We can't find someone that has experience like we found with intergov and fill out an application and get someone to come in and help us through this process.

E

Not not with the expertise that that we would need it's highly sought after.

K

Skills. Okay, so is this? What I'm sorry is this? What we anticipated is it worse than we thought or is the better than we thought when you transfer over to a whole new system, it's.

E

What we anticipated this is this is that big of a change.

F

Which is painful, we anticipated.

N

Just an observation: didn't we let go some of our I.t people once we went to interva because they didn't know it. I mean I know, there's one person that comes to some neighboring.

E

Meeting so we converted, we converted a position. The the client server skill set is different than this skill set and what we've been operating in the past with these old systems are so you've got somebody that can work on a 1950s, 57 ship.

E

You now have we don't have a tesla, maybe we've got a prius. We've now got a modern vehicle to use and we have to have people that can work on that type of system, so different skill set from what we were working on and this new web-based system operates.

N

N

It's just bothersome that we had to let go a long-time employee and now we're in we have we've switched over to a new program, so we only have one person that can work on it and it really is creating some issues.

E

So the the possibility is always there for retraining. In this case, the need was for an entirely different skill set. So it's not it's not quite the same as.

F

It's not one software to a next, it's actually the infrastructure. That's built on that.

N

I just I just wonder why we have a system that is so specific that we can't get that we can't hire people to.

F

It's actually the opposite, we're moving in a direction, that's web-based, so that we don't have as many staff worried about our own server systems. In-House.

F

Yeah, you know we're well past the time where 1it might be able to fill in for another I.t person. There's a strong distinction.

E

And it's not sorry, scott, it's not necessarily the system itself. It's really the skill set. That's it's different as it was when we moved from you, know, sort of the the old database type systems to sql servers and things that operate differently.

E

The first 20 days as you can see, we started processing things. These are permits licenses code cases.

K

How does that compare to what you did before it's.

E

About what we were doing so, the first.

C

E

It the first week was slow. um We did encounter that first week. Some we encountered a bug actually in the system and had to do a very quick upgrade, um so the first few days were slow after that, as you can see, it picks up.

E

And in collecting fees also about what we expect, this is the first 20 days in the fees collected and a total for the days.

M

Tried the first few days and got frustrated and dropped out and didn't complete like a building permit or any other permits.

E

I don't believe so cody do we.

P

We don't we don't, did you what.

M

We did find this on the waste paper.

P

What we did find is we, when we shut off the system that previous wednesday, we left our our previous application forms live, so applications continued to accumulate while the system was being converted and then once we went live all of our staff started, plugging in all those old type applications, and then we shut off the old applications when the new system came, live and started, directing new applicants to the system to apply through the new new application software.

P

So that's some of the numbers that you see. You see that spike the initial spike it's because we had people that were applying online. At the same time, the staff were, and now the numbers that you see have leveled out because we've gotten through loading, the backlog into the system and now all the numbers that you see are coming through that online application portal.

P

But as far as how many tried and gave up, we don't have those.

M

Most of the contractors know how to get in and use it, I'm assuming that. But what about the homeowner that first time encounters it and they're lost? Do we have any like a helpline or something to get them through that.

P

We've had a number of a number of those basic calls come into our office, and what we have found is our customer service reps. Now they don't have to enter some just duplicate data transmitted from the application form into the system.

A

Cody, you probably should step in the microphone, so we can keep the record of this response.

P

Certainly, um question being what do we do with the homeowners that aren't sure how to run the system? um What we found is that our customer service reps, once they got done logging. A lot of the a lot of the backlog with our old application forms a lot of that data entry is now done by the customers or by the citizens.

P

So now our customer service reps have transitioned into being more of a of a help line for the people that are having problems with the system, and we talk a lot of people through that process. We're still working on the the issues with people creating logins and things like that.

P

Mary lee can probably talk a little bit more about that that helpline, but we also have a public-facing kiosk in the permit development center, and when people do have problems, they can come into the office and we can help them create their login and work them through the process.

E

I think one of the one of the interesting things was: we had set up some workarounds so on the website. You could apply for a permit pay a fee during covet, but it was a very manual process. You could fill out a form, but then that had to be entered by staff. You could pay a fee, but then that had to be entered by staff. What this does is makes that all part of the system so, as cody described someone goes on and they fill out the information they can pay their fees it.

E

What what I've been hearing is it's already sort of reducing that foot traffic because it already makes it so that you can do all of that without coming into the office. However, you can also come into the office and and do those things we did develop a help document on how to sign up for an account.

E

We also are working on some additional help documents. But what we're hearing is it's pretty easy once you get your account created, it's pretty easy to go in and and it's clear what to do.

E

We did have one problem with uh somebody trying to apply for a permit that we couldn't figure out why on earth it didn't work well, they were trying to apply for a permit in des moines washington so that that.

E

The project timeline you can see there and linda that that council, member westergard, that addresses a little bit of your question, the build and configure we are staying in implementation mode. One of the things that has come about is that there still are some things that need to be configured so there is that that spot in the building configured, where there's still additional work to be done, and we are working through those things.

E

The production cutover has happened, but we continue to work on not only issues but improvements.

E

So current focus, as I mentioned, the remaining issues, there were some components of the project that we delayed so that we could focus on getting that basic functionality live and we'll be working with the the tyler team on locking down a timeline for those additional pieces, as well as planning an upgrade.

M

I see upgrades being scheduled. Are these normal upgrades or purchase upgrades.

E

These are normal upgrades that are a part of our maintenance agreement.

E

Wanted to call out just a little bit something that is different, that we couldn't offer with the old system and that's the customer self-service it's an evolving process, it's a separate module, but it allows citizens to do business in a variety of ways. We have basic functionality. Now all divisions are not online with it yet, but the things that that customers can do is they create an account and then they can apply for a permit apply for a license.

E

They can track their progress. So does it need to be a phone call to answer where? Where am I in the process? They can access their documents and they can search records and request an inspection.

E

Anything cody that you wanted to to say about that.

P

um Yeah, so with with css, I guess the one thing I would bring forward is. This is a huge change for staff as well as customers, and we're really pushing our customers to use css as much as possible.

P

You may receive some complaints about it right out of the shoot. It is a huge change, for example, with our contractors. Our contractors are used to calling in or or sending an email to request inspections and we're going to be pushing them to submit their inspection requests using the css portal.

P

The reason for that is, it will be more efficient. It will save our staff a lot of time. Making phone calls returning phone calls in the morning and afternoon, and it also gives us a good, a good dashboard to see how well we're performing.

P

So when someone submits an inspection request through this portal, it documents when they requested it, and it gives us a very easy way to see how quickly we accommodated that request.

P

So you may receive some complaints about how css is, is it's unfamiliar and it requires them to use the internet when maybe they don't really want to which we still offer we'll still offer the inspections through phone calls and things like that. But we're going to prioritize the use of this online platform because of the efficiencies and because of the transparency and because the way that it allows us to give ourselves a scorecard on how well we're doing.

C

E

So, what's next, we will continue resolution of all the issues that have been reported. We will continue the onboarding of the areas that are still outstanding and will continue development of reports and and those dashboards.

E

We would see implementing customer self-service. Those additional areas by this fall.

E

The upgrades to intergovern the the tyler software includes some server upgrades and that would need to be done by the end of 2021 and then the implementation of which 311 did separate as part of the project, and that would be to be determined on the implementation of that questions.

K

I've heard from uh on inspections that it's difficult, it's more difficult as far as trying to get caught up the process isn't as friendly as maybe it could have been. Is that one of the areas you guys are working on.

E

The as far as the staff side, right, yes, that is one of the areas, that's part of the the reason for keeping implementation staff engaged from the vendors.

K

Right because, if we're you know, I know with code, we.

B

Probably got a little behind and so try to get.

K

Caught up, you know to give them, I don't know if they have the laptop and go in and do it all and download it. I mean I don't know what the system is, but whatever we need to do so we can keep up these discussions.

O

uh Two questions refresh my memory. What three one one is about, please.

E

So three one one would be a system where citizens could contact either on the website or through the system itself, with a request reported issue not dissimilar to what city sourced is today, but would take that request and route it to the inner go system or other systems like lucity that we use at public works and our onboarding and engineering. What we couldn't do before was interface with taiwan, because the the technology was too old.

E

This would would allow that intake in one system, which again would then allow us to do some reporting and some trends. Okay,.

O

Second question: this is for cody. So what are your uh inspectors saying in the field that are using tablets.

P

um There's there's a lot of stress the first few days when they started out with it much much like we all expected, we've been using tithemark for the last 20 years and the pandemic helped us transition to more of a digital environment, so that was kind of a good half step towards where we're headed now going to the tablets.

P

It was stressful, but the inspectors have been pretty quick to figure out how to use them, and I'd say that the the perception of how how it works now is a lot better than it was on june 22nd, but when they were trying to figure out how to use those things. um So it's it's. I guess it's gone as expected.

P

It's been it's been kind of a rough start, but any sort of a change like this is definitely gonna come with some with some rough patches. So.

I

Have you given it to them as user friendly as possible? My understanding, there's some type of upgrade that could make it easier. Is that true, or is there something else that's coming to help them, or so? Where are we at.

P

In that process, so with the with the system with intergov right now, they're in the they're in the process of transitioning, their system to be html and that's basically from internet explorer to google chrome is essentially where the, where the system is transitioning and right now, they're in the process of pushing everything over and reprogramming it. So it works with the google chrome style platform.

P

So what we're? What we're working with is the like the first draft of the software in this new form and with each upgrade that comes we'll.

A

P

More improvements that come with with that system because the software developers have had to cram a lot of their stuff that had been had been worked on for the last 10 years, refined and polished and shove it over into a new operating platform. So there are still some there are still some things that could be improved. That we expect will be improved considerably as with each upgrade that comes out.

P

I think a lot of the inspector frustration comes with just a unfamiliarity.

P

They were, they were trained on how to use this weeks before we went live, and what we found is that, as as the inspectors spend more time using the using the tablets using the software, um they figure out how to make it work. It takes time to use it. I've been working with it for a year now and it uh it just takes hours. I mean it takes hours being in the system using it and uh and working with each other to figure out how the process has worked most efficiently.

K

So can you say take time to learn, that's one thing, but take time to inspect I mean: are we more efficient when we go and inspect and get better information with the system.

P

Well, what I can say is what now the inspector walks in with the tablet has the inspection on that tablet has a checklist of items to look at for, depending on the type of inspection can mark each item on the checklist can make notes they can they can do that in a in a voice to text format? They can take pictures that are imported directly into the system and they can have the contractor sign and acknowledge that they were there for the.

K

Inspection and then.

P

K

Gets downloaded and I'll print it for whatever, whatever.

P

So that that then pushes directly into the system, they can also send an email directly from the tablet to the contractor, so they can have that list of inspection items.

P

The process before would require the inspector to go out, take take notes on a pad of paper and then go back to the office enter those notes into the system and then, if the contractor wasn't present, then also type an email was sent to the contractor or make a phone call to the contractor to give that person the list of production items.

P

So it's it's much more efficient. um Our we probably still have staff that are uncomfortable using newer technology.

P

Center inspectors they they dove in head first and initially there was. There was a a lot of frustration with it, but it quickly subsided and a lot of the inspectors. You know this is this is kind of nice. We can pull open a map that shows each inspection um on a map of the city and they can see where, where each inspection is and what time it's going to be. For.

K

The home inspection part of it is it very similar.

P

It functions on a similar platform.

A

Any other questions.

M

No uh actually dashboard and reports, I'm assuming all those are historical reports, but do we have any real time so that, like, for example, I saw one category had 230 applications in one day, do we have the capability of real time seeing that somebody looking at it and being able to fill in uh customer service at peak times, yep nodding heads, so I'm thinking the right direction here.

P

Yep, there's there's a there's, a number of dashboards that are available with the system, which is a very good management tool. We can see how many inspections are requested for the day for each division.

P

We can see how many are scheduled, how many are completed now with mary lee talked about the the millions of records that were converted, we we have a little bit of overlap, a little bit of cleanup to do with that, because a lot of those older records are kind of cluttering up some of those dashboards.

P

So some portions of the dashboards are still a little messy. um Those are some of the things we're working on refining right now,.

I

So um is it the same for rental inspectors too they're? Obviously using this is, are we seeing the number of inspections going down? Are we staying about the same? What we were expecting I mean, is this speeding up the process? Is it? Is it working for rental inspections.

P

I'd have to have some of their staff weigh in on that. What what I can say is that I think the rental inspections have have faced a few more difficulties. um I think the is there.

I

Something here that can speak to that- or I thought chris is here.

P

We've, what we noticed when we were having the system built is that we had between pdc and nid. We had more staff time dedicated to the build out earlier on in the process, and I think that may be why the pdc is having a different level, a different type of experience. At this point, where I think the nid staff are maybe a bit behind where the pdc staff were and the build out and learning of the system. But.

B

Chris chris johansen neighborhood service director, as kind of talked about the presentation, there's a couple areas, some bugs we're still working through. I think one point you were referring to just to kind of give you some evidence what they're facing right now there's you know they could see the the list of tasks they have to do for the day, but it's kind of hard to sort out. You know what type of inspections they're doing, so they have to go back into the system to figure out what it is.

B

That's just something they're going to work through right now. It's nothing that that's the way the system works, but that's just one of the things they're facing um there's some notices that they're still sorting through so it's kind of too early to tell that's kind of where we're at, but there's there's some difficulties we're having. But it's not saying that's the way the system is always going to be. That's just where we're at today with it do.

I

We have a timeline of when that's some of the issues that will be corrected, so they can actually get out and do the inspections that we were open and timely fashion fashion as we purchased this yeah we're really.

E

So, on the things that that chris mentioned, we are prioritizing the issues, that's one of the the things that's top of the list, that's what we're working on with the tyler staff and with the inspection staff right now and.

I

The tyler staff is who we bought intergov through the software. Is that.

E

That's referring.

I

To them yeah, I assume that's what it is, so the tyler staff is is on board, we're paying them a fee to help us kind of get through some of these issues. So I imagine that they have a whole separate support group that can help us through some of these things in a timely fashion. So we do kind of have some outside support.

I

C

I

Just one full-time city, we do have this tyler group, that's helping us right.

E

Right, well, that's good to know, and there have been challenges there. um We.

I

We've no candy coated for us because you know what's going on because we're the ones getting the same staff that they have. What.

E

They mean so in the last week we lost three people on the tiger side: okay,.

K

E

Is something that's happening across the country? Okay, um it's um in.

I

The news is that a maintenance fee that we're paying with them.

E

It's a it's! It's a part of the implementation fee that we paid so we're not yeah, so they obviously.

I

Have to get some additional staff to help us correct, or I would hope that we're not going to pay them if they're not doing what they're.

E

We have been, we have been withholding payment- okay, and we have worked up the chain on the tyler side to make sure that we are getting competent, the people that you need people- okay, that can address specifically those areas where, uh where we need help, our person in having some experience with the system already has been a great help in making sure that we are getting competent people.

E

So um it's it's been challenging, uh but I I also think that that holding that implementation phase and making sure that they are focusing on those most immediate needs, like the inspections, uh will help us get through. That.

K

Yeah, because we I you know my concern- is we were kind of behind, probably because of coba anyway, and if we get another, how many months behind the frustration of frustration, for you know absolutely of us that get to hear about rental, when specialists not being done.

E

Absolutely anything.

M

Else all right.

E

All right, thank you for your time. We will.

A

E

Provide updates, as things go forward.

A

uh Scott any final closing remarks all right. Thank you all for attending uh appreciate all the presentations, and uh this was a little longer than we expected today, but I think it's necessary- and I appreciate everybody uh being here so with that this meeting's adjourned we'll see this evening.

B

I

Going to put this.

A

B

I

I