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Home My WebLink AboutCommittee of the Whole - 04 May 2020 - Agenda - Pdf CITY OF RENTON AGENDA Committee of the Whole Meeting 5:15 PM - Monday, May 4, 2020 VIDEOCONFERENCE 1. Affordable Housing Update a) Presentation b) Handout 2. Civic Core and Downtown Update a) Presentation 3. Renton Municipal Arts Commission Update a) Presentation SHB 1406 Update Concerning the State Sales Tax Credit for Affordable Housing AGENDA ITEM #1. a) Overview •SHB 1406 •EHB 2797 Update •Policy Choices •Staff Recommendations •Next Steps AGENDA ITEM #1. a) Substitute House Bill 1406 •SHB 1406 was enacted during the 2019 legislative session •Over $500 million in state investment was committed to local governments through a 20-year state sales tax credit •This is a credit against existing sales tax that would stay local rather than being sent to the state -meaning no increase for Renton residents AGENDA ITEM #1. a) Collection of Funds •The state sales tax credit is available to cities and counties for 20 years at either .0073% or .0146% •Rate of local collection depends upon county participation and if the local jurisdiction has adopted a qualifying local tax (QLT) by July 2020 •To collect funds, jurisdictions must pass a Resolution of Intent by January 28, 2020 and an authorizing ordinance by July 28, 2020 AGENDA ITEM #1. a) SHB 1406 –Qualifying Local Tax A qualifying local tax must be either: •10-year property tax levy, subject to voter approval, of up to .50/$1000 •1/10th of 1 cent sales tax, subject to voter approval •Mental health and chemical dependency sales tax •6-year excess property tax levy, subject to voter approval AGENDA ITEM #1. a) Usage of Funds •Funds must be targeted towards assisting people with incomes at or below 60% AMI •For acquisition, construction, or rehabilitation of housing, as well as supporting the maintenance and operations costs of new housing units AGENDA ITEM #1. a) SHB 1406 in Renton .0073% •$236,380/year OR •$4,727,600 over 20 years .0146% •$472,760/year OR •$9,455,200 over 20 years + QLT funds City Collection Rates (based on 2018 estimates)AGENDA ITEM #1. a) SHB 1406 in Renton •Renton City Council passed a Resolution of Intent to authorize the state sales tax credit on August 12, 2019 •In late 2019, polling was conducted on support for a QLT showing potential support for a November 2020 10-year property tax levy Note: Without adopting a QLT, Renton is only eligible to access the .0073% credit AGENDA ITEM #1. a) Engrossed House Bill 2797 •EHB 2797 was introduced and passed in the 2020 legislative session as an amendment to SHB 1406 to extend the timeline to adopt a QLT to December 31, 2021 •The bill was vetoed the governor in April due to concerns over potential fiscal impacts •Therefore, the QLT deadline remains July 28, 2020 -barring Special Session action by the Legislature, which is under discussion AGENDA ITEM #1. a) Policy Choices 1.Should Renton adopt an ordinance to authorize the collection of the .0073% base state sales tax credit? 2.Should Renton commit to pool the base state sales tax credit with SKHHP member cities?AGENDA ITEM #1. a) Issue #1 Should Renton adopt an ordinance to authorize the collection of the .0073% state sales tax credit?AGENDA ITEM #1. a) Issue #1 •An ordinance is required to authorize the collection of the tax and amend Renton Municipal Code •Collection of the sales tax credit begins immediately after authorization Staff recommends adopting the ordinance as soon as possible so the City can begin collecting the funds immediately.AGENDA ITEM #1. a) Issue #2 Should Renton commit to pool the base state sales tax credit with SKHHP member cities?AGENDA ITEM #1. a) Issue #2 •Renton joined SKHHP in May 2019 •The SKHHP Executive Board passed a resolution in November 2019 urging all member cities to pool SHB 1406 funds •So far, six of the nine member cities have passed pooling resolutions Staff recommends that Council pass a resolution to pool SHB 1406 funds to SKKHP.AGENDA ITEM #1. a) PRO CON PRO CON Impacts to Partners Lack of Representation Less Money Partner Pipeline Predictable Revenue More Autonomy Pooling Not Pooling AGENDA ITEM #1. a) Next Steps •Prepare legislation and agenda bill for SHB 1406 ordinance and pooling resolution for Council action •Track EHB 2797 during 2020 Special Session •Monitor progress of HB 1590 –recent legislation that could result result in several hundred thousand dollars a year for affordable housing and homeless efforts in Renton AGENDA ITEM #1. a) Questions? msantosjohnson@rentonwa.gov AGENDA ITEM #1. a) SHB 1406 POLICY OPTIONS FOR COUNCIL Renton City Council passed a Resolution of Intent to authorize the collection of an existing state sales tax credit for affordable housing on August 12, 2019. Staff is looking for direction on next steps. See below for more detail on staff recommended options. ➀PASS AN ORDINANCE TO COLLECT BASE SALES TAX CREDIT (.0073%) To move forward with the collection of SHB 1406 funds,Council must authorize the use of the state sales and use tax credit through an ordinance by July 28,2020.Collection of base sales tax credit begins immediately after authorization by ordinance.This also begins the 20-year “collection clock.” Staff recommends adopting the ordinance as soon as possible so the City can begin collecting funds immediately. 27 April 2020 1 ➁PASS A RESOLUTION TO POOL BASE CREDIT (.0073%) TO SKHHP Renton joined the South King County Housing and Homelessness Partners (SKHHP)through an Interlocal Agreement (ILA)in May 2019.The ILA highlights cooperative action and pooling public and private resources as the most efficient and expeditious way for member cities to address affordable housing needs in South King County. In November,2019,the SKHHP Executive Board passed Resolution 2019-06 urging all member cities to pool the base sales tax credit revenues collected under HB 1406 to SKHHP.So far,six of the nine SKHHP member cities have passed resolutions to pool SHB 1406 funds to SKHHP; two more cities have action pending.All of our partners’resolutions contain provisions to pool their funds only if all SKHHP members choose to do so. SKHHP ’s 2020 draft work plan contains an objective to establish a South King County Affordable Housing Capital Fund in order to leverage 2021 County and State resources to fund a project next year. There are pros and cons to pooling,described on the following page.Staff recommends that Council pass a resolution to pool the base tax credit (.0073)funds to SKHHP. AGENDA ITEM #1. b) POOLING SHB 1406 FUNDS WITH SKHHP PROS CONS Less Autonomy and Renton Control:Decisions for awarding the $1M annually would be made by the SKHHP Executive Board,on which Renton has a seat,rather than Renton awarding its own $236K each year. Competition for Funds:Renton Housing Authority and other Renton projects would have to compete for funding with projects by other entities and in other SKHHP cities. SHB 1406 POLICY OPTIONS FOR COUNCIL 27 April 2020 2 More Money Available:$1M would be annually available for affordable housing projects in South King County by pooling.SKHHP can also bond against its future $20M revenue stream.Rather than access to $236K annually,the City could tap into a potential $1M or greater stream annually; therefore,it is likely that Renton projects will get more money over time.Renton Housing Authority (RHA)will likely be a strong funding candidate as it has a demonstrated history of building projects and competing for and securing resources. Leverage for More Dollars:SKHHP is and will continue to work to leverage private and public funds to bolster the capital fund.One potential leverage is Microsoft match.Microsoft has been asked to match all pooled SKHHP SHB 1406 funds for five years,resulting in potentially $5M more for the SKHHP capital fund. A Seat at the Funding Table:With a capital fund, SKHHP could represent South King County as part of funding coalitions to help allocate county and state resources to support local projects. ARCH—the Eastside’s housing coalition—gives their cities a unique voice at county-and state- level funding forums;with a capital fund,SKHHP can provide this voice for South King County. More Efficient Administration:Rather than all nine SKHHP jurisdictions administering their own funds,the pooled SHB 1406 funds can be administered by SKHHP as one entity.Pooling maximizes efficiency and expedites collective efforts to address affordable housing needs in South King County. Renton is a SKHHP and South King County Leader:Renton was key to the formation of SKHHP and is a recognized leader in the collective effort to address South King County’s affordable housing needs.Renton’s efforts are notable,but regional needs are best addressed collaboratively with other invested partners. Working together is the most effective way to address needs that extend beyond city boundaries. Alternative Funding for Renton Available:House Bill 1590 (HB 1590)–enacted by the 2020 Legislatures and signed by the Governor – enables King County to ‘councilmanically’enact a 1/10th of 1 cent sales tax increase for affordable housing and homelessness.If King County acts by September 30,2020 to access this additional tax, at least 30%of the money collected must be spent in cities with a population over 60,000. City of Renton’s Finance staff estimates this could raise about $850,000 a year in the city. AGENDA ITEM #1. b) NOT POOLING SHB 1406 FUNDS PROS CONS Less Money Overall: Renton projects would not have access to the additional $750K/year in pooled SHB 1406 funds from SKHHP funds. Renton would also not qualify for any potential SHB 1406 matching funds (such as Microsoft) and may not qualify for other leveraged SKHHP funds. Renton projects will likely get less money over time without pooling, given the loss of access to the SKHHP capital funds. No Representation at the Table: Without a SKHHP capital fund, South King County and Renton will not have access to coalition funding forums. Renton would also likely be excluded from voting on the use of the potential SKHHP pooled funds. Renton projects may also be ineligible to apply for other SKHHP funds. Impacts to South King Partner Cities: If Renton decides not to pool funds, other SKHHP cities will need to start over and decide whether to pool their funds without Renton’s participation. Renton and RHA are making a difference, but we will miss the opportunity to help SKHHP create a capital fund to collaboratively address South King County affordable housing needs. SHB 1406 POLICY OPTIONS FOR COUNCIL 27 April 2020 3 More Autonomy and Renton Control: By not pooling, the City gets to decide how to allocate the annual $236K –either to support Renton Housing Authority or other Renton projects. Predictable Funding Source: The City would have a reliable source of funds to support Renton projects annually, potentially being able to support a project each year. The City can also choose to bond against future revenue, but this is less feasible given the amount of the City’s SHB 1506 funds. Existing Partner Pipeline: Renton Housing Authority is an established partner of the City and has an existing pipeline of projects that would benefit from funding. AGENDA ITEM #1. b) Civic Core Update AGENDA ITEM #2. a) Civic Core Update Introduction Business Support Events and Festivals Capital Projects Art Integration AGENDA ITEM #2. a) Introduction AGENDA ITEM #2. a) Business Support AGENDA ITEM #2. a) Business Assistance •Façade Improvement Grant •Downtown Business Forum •Free Workshops and access to services •Startup425 •Free Foundation workshops •Women in Business Conference •Spanish Business Expo •Score Mentors AGENDA ITEM #2. a) Business Outreach •Websites •Downtown •Visit Renton •Economic development •Videos •Economic Development Highlights •Renton Business Minute •Retail Broker AGENDA ITEM #2. a) Policy Updates •Code Modifications •Food Truck •Window Screens •Development Height Bonus AGENDA ITEM #2. a) Future Policy Updates Parking Standards Garage On street Alleys Downtown Sign code update Business Improvement District Study Designate Downtown as a “Main Street” through Washington's Main Street Program AGENDA ITEM #2. a) Events and Festivals AGENDA ITEM #2. a) Capital Projects AGENDA ITEM #2. a) Intersection improvements AGENDA ITEM #2. a) 200 Mill AGENDA ITEM #2. a) Pavilion RFP AGENDA ITEM #2. a) Renton Connector AGENDA ITEM #2. a) Future Capital Projects The Pavilion The “Backyard” The Piazza The Festival Street The Junction Tonkin Park Alley Activation Increase the urban tree canopy Intersection Improvements Implement adopted streetscape The Big 5 Site Development AGENDA ITEM #2. a) Art Integration AGENDA ITEM #2. a) Questions?AGENDA ITEM #2. a) 2020 Update Renton Municipal Arts Commission AGENDA ITEM #3. a) Summary & Highlights Public Art Community Events Support for the Arts Future of the Arts AGENDA ITEM #3. a) Public Art is alive in Renton! Erasmuscelebrated the first anniversary of Hatch Day! on April 13, 2020 AGENDA ITEM #3. a) South Renton •Hydrant program •Burnett Linear “mini murals” •Market Melody mural (coming soon) Art in the Neighborhoods AGENDA ITEM #3. a) Sunset/Highlands •Sunset Fence Project •Utility box wraps •Sunset Community Park art AGENDA ITEM #3. a) Renton Hill •Utility boxes AGENDA ITEM #3. a) Benson Hill •Mural project AGENDA ITEM #3. a) Kennydale •Watertower •Turtle •Hydrant AGENDA ITEM #3. a) Downtown •Storefronts program •Downtown storefront Art Walk •Renton Loop AGENDA ITEM #3. a) AGENDA ITEM #3. a) Community Events Arts & Culture programmingAGENDA ITEM #3. a) Funding for the Arts •Grant Support •Renton River Days •RenCon •Student Art Show PSESD •Evergreen City Ballet •Ascendance AGENDA ITEM #3. a) Future of the Arts AGENDA ITEM #3. a) Follow us in 2020! FACEBOOK RentonArts Rentonwa.gov/RMAC Arts@rentonwa.gov INSTAGRAM RentonArtsCommission AGENDA ITEM #3. a)