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HomeMy WebLinkAboutPackets - Council Packets (1173)Council Meeting Regular Session September 18, 2019 1 Town Council Meeting Announcements 2 Upcoming Meetings 3 4 Fiscal Year 2018/2019 Financial Update Through June 2019 (Year-End, Unaudited) September 18, 2019 Thank you Mayor and Council, I’m pleased to report that the Town’s finances continue to perform well and within budget through the month of April 5 General Fund In the General Fund, total revenues collected this year through Apr are $32.5M compared to $32M collected last year through this month. We are about 83% of the way through the fiscal year, and trending right in line with where we expect to be. Expenditures through Apr total $31.1M compared to $28.4M spent last fiscal year through this month. So through the month of April total collected revenues exceed expenditures by approx. $1.4M. 6 General Fund Highlights - Revenues Local sales taxes exceeded budget by $1.6M, or 8.3% License and permit revenues exceeded budget by $220K, or 10.3% State-shared revenues exceeded budget by $170K, or 1.5% Charges for services exceeded budget by $140K, or 5.8% Interest income exceeded budget by $500K Total revenues estimated to exceed budget by $2.3M, or 5.9% A few highlights in the General Fund : Local sales taxes are trending to end the year over budget by $564K, driven primarily by construction sales tax collections over the past few months. Meanwhile, State shared revenues are trending right on budget at year-end Overall, we are estimating to end the year with revenues coming in over budget by $560,000 or 1.4% Gen Fund expenditures are estimated to come in under budget by about $2.3M, with about $600K due to personnel savings, $1M in estimated O&M savings, of which about $260K in savings is due to the expiration of the OV Marketplace sales tax rebate ending as of December 31st. Additional savings of $550K is due to not making the subsidy transfer to the Highway Fund. And remaining savings are being seen in areas across the budget such as utilities, fleet maintenance, and outside professional services. As a result, the ending fund balance is estimated at $16.4M. 7 General Fund Highlights - Expenditures Personnel savings of $680K, or 2.5% Operations and maintenance savings of $990K, or 10.4% Capital outlay savings of $180K, or 24.3% $550K transfer to Highway Fund not necessary Total expenditures estimated under budget by $2.4M, or 5.7% Total revenues in the fund exceeded expenditures by $1.6M Year-end fund balance estimated at $18.2M, or 46% of expenditures A few highlights in the General Fund : Local sales taxes are trending to end the year over budget by $564K, driven primarily by construction sales tax collections over the past few months. Meanwhile, State shared revenues are trending right on budget at year-end Overall, we are estimating to end the year with revenues coming in over budget by $560,000 or 1.4% Gen Fund expenditures are estimated to come in under budget by about $2.3M, with about $600K due to personnel savings, $1M in estimated O&M savings, of which about $260K in savings is due to the expiration of the OV Marketplace sales tax rebate ending as of December 31st. Additional savings of $550K is due to not making the subsidy transfer to the Highway Fund. And remaining savings are being seen in areas across the budget such as utilities, fleet maintenance, and outside professional services. As a result, the ending fund balance is estimated at $16.4M. 8 Highway Fund In the Highway Fund, total revenues collected this year through Apr are $3.1M compared to $2.8M collected last year through this month. The total revenue budget is $4.1M. Expenditures through Apr total $2.5M compared to $3M spent last fiscal year through this month. Total expenditure budget is $4.6M. So through the month of April total collected revenues exceed expenditures by just over $600,000. 9 Highway Fund Highlights HURF gas tax revenues exceeded budget by $270K, or 8.3% Total revenues estimated under budget by $230K, or 5.6% No subsidy transfer from General Fund Total expenditures estimated under budget by $480K, or 10.4% Year-end fund balance estimated at $694K For Highway Fund highlights, HURF gas tax revenues are still trending over budget by $328K Overall, revenues are estimated to come in under budget by $232K mainly due to the eliminated need for the General Fund subsidy transfer Expenditures are estimated to come in under budget by $312K due primarily to the Tangerine Access to Safeway CIP project of $250,000 rolling over to next year’s budget. Year –end fund balance is estimated at $523K 10 Community Center Fund In the Community Center Fund, total revenues collected this year through Apr are $5.6M compared to $5.7M collected last year through this month. The total revenue budget is $6.7M. Expenditures through Apr total $4.9M compared to $5.4M spent last fiscal year through this month. Total expenditure budget is $6.6M. So through the month of April total collected revenues within the fund exceed expenditures by nearly $770K. (savings – tennis, water, management fee) 11 Community Center Fund Highlights Total revenues estimated to end year over budget by $90K, or 1.3% Total expenditures estimated to end year under budget by $325K, or 4.9% Total revenues in the fund exceeded expenditures by $502K Year-end fund balance estimated at $312K Restated beginning fund balance attributable to prior period adjustment of donation revenues Overall, total revenues at year-end are estimated to come in about .6% or $39K underbudget Total expenditures are estimated to end the year under budget by $295K With a year-end fund balance in the fund of $273K 12 QUESTIONS? 13 14 Fiscal Year 2019/2020 Financial Update Through July 2019 September 18, 2019 Thank you Mayor and Council, I’m pleased to report that the Town’s finances continue to perform well and within budget through the month of April 15 General Fund In the General Fund, total revenues collected this year through Apr are $32.5M compared to $32M collected last year through this month. We are about 83% of the way through the fiscal year, and trending right in line with where we expect to be. Expenditures through Apr total $31.1M compared to $28.4M spent last fiscal year through this month. So through the month of April total collected revenues exceed expenditures by approx. $1.4M. 16 General Fund Highlights All revenues estimated on budget at this time Local sales tax collections total $1.6M, or 8.0% of budget License and permit revenues total $343K, or 17.3% of budget State-shared revenues total $947K, or 7.6% of budget Charges for services revenues total $259K, or 10.1% of budget Expenditures estimated to end year under budget by $114K due to personnel savings Year-end fund balance estimated at $15.7M A few highlights in the General Fund : Local sales taxes are trending to end the year over budget by $564K, driven primarily by construction sales tax collections over the past few months. Meanwhile, State shared revenues are trending right on budget at year-end Overall, we are estimating to end the year with revenues coming in over budget by $560,000 or 1.4% Gen Fund expenditures are estimated to come in under budget by about $2.3M, with about $600K due to personnel savings, $1M in estimated O&M savings, of which about $260K in savings is due to the expiration of the OV Marketplace sales tax rebate ending as of December 31st. Additional savings of $550K is due to not making the subsidy transfer to the Highway Fund. And remaining savings are being seen in areas across the budget such as utilities, fleet maintenance, and outside professional services. As a result, the ending fund balance is estimated at $16.4M. 17 Highway Fund In the Highway Fund, total revenues collected this year through Apr are $3.1M compared to $2.8M collected last year through this month. The total revenue budget is $4.1M. Expenditures through Apr total $2.5M compared to $3M spent last fiscal year through this month. Total expenditure budget is $4.6M. So through the month of April total collected revenues exceed expenditures by just over $600,000. 18 Highway Fund Highlights HURF gas tax revenues expected to come in over budget by about $200K, due to one-time allocation approved in final state budget Total revenues estimated to end year over budget by $227K Expenditures estimated on budget at this time Year-end fund balance estimated at $584K For Highway Fund highlights, HURF gas tax revenues are still trending over budget by $328K Overall, revenues are estimated to come in under budget by $232K mainly due to the eliminated need for the General Fund subsidy transfer Expenditures are estimated to come in under budget by $312K due primarily to the Tangerine Access to Safeway CIP project of $250,000 rolling over to next year’s budget. Year –end fund balance is estimated at $523K 19 Community Center Fund In the Community Center Fund, total revenues collected this year through Apr are $5.6M compared to $5.7M collected last year through this month. The total revenue budget is $6.7M. Expenditures through Apr total $4.9M compared to $5.4M spent last fiscal year through this month. Total expenditure budget is $6.6M. So through the month of April total collected revenues within the fund exceed expenditures by nearly $770K. (savings – tennis, water, management fee) 20 Community Center Fund Highlights Revenues total $523K, or 7.8% of budget, and are estimated just over budget, by $24K or 0.4% Expenditures total $624K, or 9.7% of budget, and are estimated just under budget, by $14K or 0.2% Total revenues in the fund projected to exceed total expenditures by $335K Year-end fund balance estimated at $647K Overall, total revenues at year-end are estimated to come in about .6% or $39K underbudget Total expenditures are estimated to end the year under budget by $295K With a year-end fund balance in the fund of $273K 21 QUESTIONS? 22 23 Comprehensive Economic Development Strategy (CEDS) Town Council September 18, 2019 24 CEDS Plan Justifies expanding economic development efforts Builds on public input from Your Voice, Our Future General Plan Provides current and projected situation analysis Identifies key strategies and tactics Creates framework to implement key ED goals from the General Plan and Strategic Leadership Plan 25 Overarching Goals 26 Initial Priorities Retain, expand and attract primary employers Retain and attract new retail Develop an annexation blueprint Improve Town responsiveness to Economic Development opportunities Develop an integrated and dynamic community marketing strategy 27 Process 28 CEDS Updates Condensed CEDS from 16 pages to 9 pages Focused on key goals and actions Removed analytical information Tightened language Aligned with suggestions from March 20th Study Session 29 CEDS Updates Closely aligned with Town Council’s SLP Goal 1A- Economic Vitality Retain, expand and attract primary employers Goal 1B- Attract Investment Invest in retail and commercial centers Complete targeted retail study Facilitate industry specific presentations to clients and prospects Goal 1C- Develop Comprehensive Annexation Blueprint 30 Summary and Recommendation CEDS Plan Expands five-year economic development strategy to: Retain, expand and attract employers, retail, talent and investment Enable job growth Aligned with the Strategic Leadership Plan and provides the framework for implementing key ED goals Recommend adoption of five year CEDS 31 32 Proposed Rezoning and Two Conditional Use Permits for a Self-Storage and Business Center Northwest corner of Calle Concordia and Oracle Road Town Council September 18, 2019 33 Good evening… Purpose Applicant’s requests for a proposed self-storage and business center A. Rezoning from large-lot residential (R1-144) to Tech-Park (T-P) B. Conditional Use Permit to allow a building size over 15,000 square feet C. Conditional Use Permit to allow a self-storage use Planning and Zoning Commission recommended conditional approval of all three items Oracle Road Calle Concordia Our purpose here tonight is to consider… - What is a CSP? - Use the Zoning Code (Design Principles and Standards) – subdivision design, connectivity, compatibility PAD Development Standards 34 Future Moore Road Palisades South Oracle Road Linda Vista Blvd. Oracle Road Calle Concordia Shadow Mountain Estates James D. Kriegh Park OV Aquatic Center Canyon Del Oro Baptist Church Future Tech Park 300’ 35 A. Rezoning Request Large-lot residential (R1-144) to Technological Park Review Tools Your Voice, Our Future General Plan Zoning Code Analysis Development standards Compatibility Environmental standards Existing Zoning R1-144 (3.3 acre residential lots) R1-144 R1-36 Private School and Church 36 A. Alignment with the General Plan Commerce/Office Park Areas where commercial, office and/or light manufacturing is appropriate Business-park environment Mix of light industrial, professional office, office/showroom, office/warehouse, retail services and related uses Tier I Growth Area Envisioned entire area as one, larger and cohesive Tech-Park campus 37 A. Tentative Development Plan Self-Storage and Business Center 115,086 sf including basement Up to 1,000 storage spaces, a business center and 13 Executive Office Suites Building Height Allowed: 34’ Proposed: 16’ max (1st floor); 25’ max (2nd floor) Building Placement Regulated by the Oracle Road Scenic Corridor (ORSCOD) Proximity to OV Aquatic Center Critical wash on the southern portion of the site Oracle Road Calle Concordia 150’ 100’ 38 A. Tentative Development Plan Oracle Road Calle Concordia 300’ Compatibility Conserves 48% open space Provides a 300’ foot buffer from adjacent residences Impact to views Access and Circulation Shared access drive from Oracle Road Anticipates future connection to development north of the site Loading Zones Screened by existing and dense vegetation and wall 6’10” wall to screen from OV Aquatic Center 39 B. Increased Building Size Conditional Use Permit to allow a 115,086 sf building Aligns with rezoning Tentative Development Plan Any permitted use in Tech-Park zoning could occupy the space Light manufacturing Office or communication studios Government, religious institutions and public schools Professional offices Technical services Recreation facilities Architectural design key aspect of review 40 B. Technological Park Architectural Design 41 B. Architectural Design View facing Oracle Road View facing Aquatic Center View facing future Tech Park View facing residences (300’ buffer) 42 B. Architectural Design Colors and materials More industrial as permitted Desert and natural hues Screen wall with landscaping 6’10” for moving vehicles Designed to match building Sets theme for future tech-park development Colors and materials Design elements such as a flat roof Elements to reduce massing 43 C. Self-Storage Use Conditional Use Permit to allow a self-storage use Review criteria focuses on compatibility to adjacent uses 44 C. Impact on Tech-Park Uses Self-storage is consistent with other Tech-Park uses (I.E. warehousing) Larger buildings are common in Tech-Park areas Foothills Business Park Self-Storage Religious institution Office Light Manufacturing Foothills Business Park 45 C. Employment Space in T-P Town initiated code amendment to increase Tech-Park (employment) space Allow low-impact Tech-Park uses in Commercial zones Request includes 5,414 sf of office space Rental office Business center 13 executive office suites 46 All requests reviewed for conformance with the General Plan General Plan Conformance Guiding Principle and Policies Principle: Grow the number of high quality employment opportunities, including research/tech parks, light industry and profession office complexes Policy SD.4: Protect and conserve healthy native vegetation during the development review process Policy LU.5: Provide diverse land uses that meet the Town's overall needs and effectively transition in scale and density adjacent to neighborhoods.  Policy E.4: Support the Oro Valley workforce and residents through education and training programs and needed services and amenities. 47 Public Participation One neighborhood meeting held in June 2018 Key Concerns View impacts from the OV Aquatic Center and adjacent residences Hours of operation (lighting and safety) Permanent protection of open space area Mitigation Measures Varied building height Placement of building Restricted hours, onsite manager and surveillance Recorded conservation easement View from residences View from Oracle View parking lot 48 Planning and Zoning Commission Meeting held on May 7, 2019 with the following key concerns: Architectural design Job creation and employment in Tech Park space Impact of self-storage on the future Tech Park development to the north Reconsidered on August 6, 2019 to address a technical discrepancy. Applicant revised requests to include the following: Provided more faux windows to most visible sides Added 13 executive offices suites and parking spaces to accommodate 49 Summary and Key Factors Aligned with General Plan land use designation and vision for entire area Transitional Land Use: Low impact use between larger lot residential and future tech-park Building placement and lower building heights Added value as a Tech-Park Use: Self-storage is consistent with Tech-Park uses Does not deter other Tech-Park uses Sets foundation for future tech-park development to the north Concerns from residents were minimal and mitigated Calle Concordia Future Tech Park Linda Vista Blvd. Oracle Rd. 50 Recommendation All items are in conformance with the Your Voice, Our Future General Plan and Zoning Code Planning and Zoning Commission recommended conditional approval of all items, subject to the conditions in Attachment 1, Attachment 2 and Attachment 3. Requires 3 separate motions Item A (rezoning request) and Item B (CUP for larger building size) must be aligned Natural Open Space Significant Wash Proposed Building 51 New State Law and Testimony to Town Council Calle Concordia Oracle Rd. 300’ 52 53 Oro valley self-storage & Business center Mayor & council meeting September 18, 2019 54 Storage Facilities are Utilized for both Personal AND Business Use! Home and Office Space Savings Less expensive to lease smaller space and pay for offsite storage Storage of equipment & supplies during offseason Empty nesters looking to downsize, but keep their family possessions Millennials with expensive belongings Construction Industry Commonly use mobile trailers that aren’t always permitted Mobile trailers cost more and require additional delivery fees Storage units are more secure with 24-hour surveillance and onsite manager Restaurants and Catering Most restaurant space devoted to the dining area to maximize profits Storage needed for large appliances, tables and chairs for events Caterers typically only have commercial kitchen space to keep overhead costs down, need space for supplies General Commercial Use Storing business files, legal paperwork and other documents takes up a lot of space Retailers with stores and online-only sales need extra storage space for display models, additional inventory and trade show booth supplies Safety, Security and Convenience Secure, climate-controlled storage units keep items safe from theft or damage Long access hours and loading dock are ideal for startups and those that regularly need to retrieve items With starting a business comes the need for space, but many businesses and startups do not have the budget for large leased space with room for inventory and supplies in addition to their employees. Therefore, when thinking about how much space is needed, self-storage is a cost-effective way of making the most of a company’s space budget. 55 55 Foothills Business Park Compatible uses creating a successful T-P zoned campus Sigma Technologies Two pharmaceutical providers, medical providers and medical support companies Automotive parts supplier Freeport-McMoRan Copper & Gold Traditional self-storage facility Small businesses and space for startups Foothills Business Park is similar in size to OVSS&BC and future T-P land up to Linda Vista Foothills Business Park 32 AC Arizona Self Storage 5 AC vs. OVSS&BC & neighboring T-P property 42± AC OVSS&BC 5.7 AC (less than half developable) 56 Oracle Road Honeywell Aerospace 5 AC Traditional Self-Storage Facility Sigma Technologies Int’l, LLC Foothills Business Park Approximately 32 AC 56 Total Site Area is 5.69 AC Buildable Area Limited to 2.25 AC 61.5% of total site will remain natural or revegetated Net site area is too small, not what Primary Employers are looking for 57 Developable Area Site and regulatory constraints limit developable area to 2.25 AC 50’ Building Setback 45’ Building Setback Critical Resource Area (5% Max Disturbance) 150’ Setback (ORSCOD) 2.25 acres remaining 57 58 Logistics Sought by Primary Employers Most primary tech. employers need logistics: Major Interstate Highway Airport Rail Infrastructure Warehousing and Distribution Small-scale logistics are needed to support existing businesses & FUTURE employers that will be located on the property to the north. Logistic alternatives are needed to support existing businesses & FUTURE employers that will be located on the property to the north. Oro Valley’s lack of air, rail & interstate logistics challenges its potential to attract certain tech users Creates a need for logistic alternatives 58 Executive Suites Dynamic office spaces for 2-3 tenants each 25-30 Tenants Small, affordable office space for startups Virtual Office & Business Center Flexible space can accommodate 10-15 “Solopreneurs” 40 to 50 NEW Jobs Incuding at least 5 self-storage/business center positions 59 Project Goal Increase total employment opportunities by providing additional office space and needed storage for a wide range of residents and businesses 59 PRIMARY EMPLOYER 10 ACRES 60 Draft Comprehensive Economic Development Strategy (CEDS) 2018-2023 1 ACRE 150 New Jobs 15 New Jobs ORO VALLEY SELF-STORAGE & BUSINESS CENTER 40-50 New Jobs 2.25 ACRES (Net) OVER 22 JOBS PER ACRE 60 Movable internal walls No costly removal of tenant improvements Convenient storage space for incubators and other small businesses Easy conversion of unit sizes to adapt to shifts in space needs as companies grow 61 Tentative Development Plan Building can be easily converted into additional office space Loading Areas Cross Access Undisturbed Open Space Set Aside as Conservation Easement 100’ CCV Buffer (Undisturbed Open Space) Proposed Building ORACLE ROAD (PUBLIC ROW) CALLE CONCORDIA (PUBLIC ROW) Trail 61 Less traffic than traditional office development More diverse economic base Not a big loss if company relocates Relocations often mean companies are successful and outgrowing their space Catalyst for Tech Park growth to the north Conference rooms and other virtual office resources open to anyone in the community Millennials and Baby Boomers make up over 50% of Oro Valley’s population “By 2020, 40% of millennials will work from home.” Business center and virtual office space is perfect for startups, entrepreneurs, consultants, retirees seeking smaller office space with low overhead Flexible space that can be expanded to meet growing needs Benefits of Virtual Office Space and “Solopreneurs”/Freelancers 62 Draft CEDS: “Identify opportunities to facilitate the creation of co-working space to help accommodate the emerging independent workforce.” 62 $1.8MM 30 Executive Office Tenants 15 Freelancers using Virtual Office Space 19% at $90,000 = $769,500 12% at $125,000 = $675,000 5% at $175,000 = $393,750 + Sales tax revenue from consumer spending $13MM Construction price tag with a half million dollars in construction sales tax directly to Oro Valley + Future rental tax from 900-1,000 storage units could also provide sizable annual revenue to the Town 63 Economic Impact 1 Projected annual income for Freelancers per Draft CEDS Game Plan 2018-2023 63 64 Town of Oro Valley Major Employers 4,316 employees, TOV Website - June 2018 Technology Roche Honeywell Aerospace Securaplane Medical Oro Valley Hospital Casa de la Luz Hospice Splendido Business Simpleview Hilton El Conquistador Education Amphitheater School District Civic Town of Oro Valley Existing diversity of employment base Need for dynamic office space that can accommodate a variety of business professionals and industry types  64 Transitional use Quiet, low intensity Low amount of traffic generated from self-storage Minimal parking required = more preservation Asked how to ensure southern open space could remain undisturbed in perpetuity Conservation easement to be dedicated to the Town or a local environmental organization (developer also willing to donate land) Beautiful building screened from view on all sides, particularly from the OV Aquatic Center Potential for job creation | Catalyst for new tech employment north to Linda Vista 65 Neighborhood Feedback Project well-received at first neighborhood meeting, second mandatory meeting not required 65 66 Summary Project promotes: Local job growth and retention Diverse economic base T-P (Tech Park) expansion High-quality development Vegetation and view preservation Helps fulfill Oro Valley’s need for self-storage Meets the well-underserved need for self-storage in the community (4.9sf/person in OV vs. 8sf/person, which is equilibrium) 100% AC high-tech climate-controlled self-storage appealing to large and small businesses, startups, Solopreneurs and residents Catalyst for T-P development to the north Business center and executive suites component ideal for Solopreneurs and startups, fulfulls General Plan goals and policies of growing employement opportunities and supporting a diverse economy Movable internal walls allow building to be easily converted into additional office space Diversity of office tenants working differing hours → reduces typical AM/PM peak hour office traffic and doesn’t compete with morning and afternoon school traffic Transitional use: Quiet Ample open space Low traffic Blends into site with beautiful architecture resembles an office building large setbacks with vegetative screening 66