[Vision2020] Alturas Phase II
bill london
london@moscow.com
Tue, 09 Mar 2004 14:40:59 -0800
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B-
As I understood it, when the Phase II development of Alturas was
discussed and reported over the last year or two, the focus was on
cutting the taxpayers' share of the development. As Duncan, a URA
commissioner, noted in his email (below): "Gary Riedner's recommendation
of two years ago that the URA should only pay for a portion of a
project, such as 10%, and let private developers pay the rest."
What happened to that recognition that the taxpayers should not (again,
as with Phase I) fund the whole project and assume all the risks?
BL
Barbara Richardson Crouch wrote:
>All-
>
>I believe Duncan Palmatier has stated misleading facts in his e-mail.
>Please request a copy of minutes for the URA over the past 18 months. The
>possibility of Alturas Phase II was raised more than 18 months ago. The
>LEDC and the Alturas Park Association have been working with the URA and
>the City of Moscow to design a Phase II that will be successful and keep
>with the current mission of the RTO Zoning and to develop a cost for the
>public improvements. At the last URA meeting, Gary Reidner under the
>direction of the majority of the URA commissioners was asked to "fast track"
>this project because we have a high tech business that has signed a letter
>of intent for Phase II. Because of the loss of their lease, they must start
>construction this summer and vacate their current building by February 2005.
>In order to secure the recruitment of this company, the URA commissioners
>authorized Gary Riedner to start the background for Phase II. In fact, the
>URA commissioners requested a meeting last week for an update. So the fact
>that with a one week notice, Duncan cannot make the meeting is unfortunate.
>
>As far as my comments about private development of Phase II, Duncan
>specifically asked why no private developer could do Phase to as a Research
>and Technology Park. I explained to him that the Moscow market had not
>changed for RTO type zoning, a private developer's first interest is
>normally to generate the greatest return on his/her investment, as it should
>be. The URA's goal and missions are to invest in public infrastructure so
>that it leverages the type of development ( job creation) that is best for
>the community.
>
>I don't ask that you take my word for this, please review the URA minutes
>(of which Duncan voted in approval of most) and you will clearly see that
>Phase II of Alturas has not been "fast tracked" - it has been publicly
>discussed for the past 18 months. In fact, the Lewiston Daily News did a
>feature article on Alturas and Phase II last summer and the Moscow-Pullman
>Daily News had an article and an OP-ED piece about 1 year ago.
>
>Barbara Richardson Crouch
>Latah Economic Development Council
>121 Sweet Ave.
>Moscow, Idaho 83843
>(208) 885-2832
>(208) 885-3803 (fax)
>edc@moscow.com
>www.moscow.com/edc
>
>
>-----Original Message-----
>From: vision2020-admin@moscow.com [mailto:vision2020-admin@moscow.com]On
>Behalf Of bill london
>Sent: Monday, March 08, 2004 4:09 PM
>To: Vision2020
>Subject: [Vision2020] Alturas Phase II
>
>
>The message below was written by Duncan Palmatier, a Moscow Urban
>Renewal Agency commissioner, about the plan to use tax money to expand
>Alturas Technology Park.
>BL
>
>Law Office of Duncan Palmatier wrote:
>
>
>
>>Dear Moscow City Council:
>>
>>I am concerned about the haste to move forward with Alturas Phase II.
>>After three years as a URA commissioner, during which time there was
>>very little activity, there is suddenly a rush to fund Phase II and
>>start construction this coming summer. I have the feeling that "Hoover
>>time" has come to Moscow.
>>
>>City Supervisor Gary Riedner is pushing for a fast start to Alturas
>>Phase II. A short notice URA meeting is scheduled for this coming
>>Friday, March 12, at 7:00 am, to vote on URA funding of the project. I
>>probably cannot attend, but the meeting will proceed anyway. As far as
>>I can tell, I am the only commissioner to voice reservations about the
>>project. As I understand it, URA money will be used for infrastructure
>>(streets, lighting, and the like). The proposal is to have the URA
>>fund the full amount of the work. This contradicts Gary Riedner's
>>recommendation of two years ago that the URA should only pay for a
>>portion of a project, such as 10%, and let private developers pay the
>>rest. Hodge & Associates has estimated the cost of the project at
>>approximately $275,000. This is less than Phase I, I assume because
>>Phase II involves less land and fewer parcels. By funding Phase II,
>>"tax increment financing" means that a portion of tax revenues from
>>the Alturas area will continue to pay off bonds rather than go into
>>the general city tax revenues. If Phase II is not developed with URA
>>bonds, Phase I will be paid off within a few years and these taxes
>>will go to the city. The benefit of funding Phase II is that, if the
>>project is a success, then new taxes generated by employees of high
>>tech business, through income and sales and property taxes, will bring
>>in more revenue than if the project were not undertaken. I do not know
>>whether anyone has done a study to see if this was true with Phase I
>>or any other similar URA project in Idaho.
>>
>>At the last URA meeting, the URA was asked to fund preliminary
>>engineering work by Hodge & Associates. Gary Riedner estimated the
>>cost would be less than $3,000.00. There was no suggestion the work
>>would be put up for bid. I suggested a cap of $3,000.00, but the other
>>Commissioners felt this was inappropriate, and one Commissioner argued
>>that all available URA cash ($8,000.00) should be made available for
>>the work. I voted against the appropriation. In light of the UI's
>>Boise project, which allowed unlimited bills for preliminary work that
>>turned out to wildly extravagant, I felt some URA control was advisable.
>>
>>I questioned why Alturas Phase II could not be privately developed; to
>>wean private enterprise of government assistance by pushing it out of
>>the nest and seeing if it can fly.
>>
>>Gary Riedner argued that Phase II will not happen without government
>>assistance. Apparently, the cost of private commercial development in
>>Moscow is too high.
>>
>>LEDC Director Barbara Richardson Crouch spoke for the project on the
>>theory that, if the URA does not develop Phase II in accordance with
>>the RTO restrictions of Phase I (high tech businesses only), private
>>development will develop it in the more lucrative, but undesirable,
>>mini-mart fashion. It was argued that such a development would lower
>>property values at the existing Alturas.
>>
>>Everyone seems very optimistic about the project and convinced it will
>>be a great success. Of course, everyone felt that way about Phase I,
>>too, before it flopped and the bonds had to be refinanced. We were
>>told that letters of intent had been signed by prospective tenants. My
>>inquires revealed that there are no signed letters of intent; rather,
>>a number of prospective tenants have expressed interest. This was, as
>>I recall, the same situation before Phase I was started. It was noted
>>that Schweitzer Engineering has started taking over more property at
>>the Port of Whitman development in Pullman, and that, as a
>>consequence, there are several tenants who must relocate and are
>>willing or want to move to Moscow. Some of these companies have
>>expressed interest in Alturas Phase II. However, at this time, no
>>company has signed on to build on a lot in Phase II.
>>
>>Other than standard notices, no effort has been made to publicize the
>>URA involvement in Phase II.
>>
>>I am concerned that this project is proceeding with too much haste and
>>not enough solid support from prospective tenants or the public.
>>
>>Faithfully
>>
>>Duncan Palmatier
>>Tel: (208) 892-2962
>>Fax: (208) 892-3853
>>Email: dpalm@dpalmlaw.com
>>
>>.
>>
>>
>>
>
>_____________________________________________________
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> serving the communities of the Palouse since 1994.
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> mailto:Vision2020@moscow.com
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>
>
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B-<br>
As I understood it, when the Phase II development of Alturas was
discussed and reported over the last year or two, the focus was on
cutting the taxpayers' share of the development. As Duncan, a URA
commissioner, noted in his email (below): "Gary Riedner's
recommendation of two years ago that the URA should only pay for a
portion of a project, such as 10%, and let private developers pay the
rest."<br>
What happened to that recognition that the taxpayers should not (again,
as with Phase I) fund the whole project and assume all the risks?<br>
BL<br>
<br>
Barbara Richardson Crouch wrote:<br>
<blockquote type="cite"
cite="midLDEDLGHGEJJPONKFHAFBCEAADHAA.edc@moscow.com">
<pre wrap="">All-
I believe Duncan Palmatier has stated misleading facts in his e-mail.
Please request a copy of minutes for the URA over the past 18 months. The
possibility of Alturas Phase II was raised more than 18 months ago. The
LEDC and the Alturas Park Association have been working with the URA and
the City of Moscow to design a Phase II that will be successful and keep
with the current mission of the RTO Zoning and to develop a cost for the
public improvements. At the last URA meeting, Gary Reidner under the
direction of the majority of the URA commissioners was asked to "fast track"
this project because we have a high tech business that has signed a letter
of intent for Phase II. Because of the loss of their lease, they must start
construction this summer and vacate their current building by February 2005.
In order to secure the recruitment of this company, the URA commissioners
authorized Gary Riedner to start the background for Phase II. In fact, the
URA commissioners requested a meeting last week for an update. So the fact
that with a one week notice, Duncan cannot make the meeting is unfortunate.
As far as my comments about private development of Phase II, Duncan
specifically asked why no private developer could do Phase to as a Research
and Technology Park. I explained to him that the Moscow market had not
changed for RTO type zoning, a private developer's first interest is
normally to generate the greatest return on his/her investment, as it should
be. The URA's goal and missions are to invest in public infrastructure so
that it leverages the type of development ( job creation) that is best for
the community.
I don't ask that you take my word for this, please review the URA minutes
(of which Duncan voted in approval of most) and you will clearly see that
Phase II of Alturas has not been "fast tracked" - it has been publicly
discussed for the past 18 months. In fact, the Lewiston Daily News did a
feature article on Alturas and Phase II last summer and the Moscow-Pullman
Daily News had an article and an OP-ED piece about 1 year ago.
Barbara Richardson Crouch
Latah Economic Development Council
121 Sweet Ave.
Moscow, Idaho 83843
(208) 885-2832
(208) 885-3803 (fax)
<a class="moz-txt-link-abbreviated" href="mailto:edc@moscow.com">edc@moscow.com</a>
<a class="moz-txt-link-abbreviated" href="http://www.moscow.com/edc">www.moscow.com/edc</a>
-----Original Message-----
From: <a class="moz-txt-link-abbreviated" href="mailto:vision2020-admin@moscow.com">vision2020-admin@moscow.com</a> [<a class="moz-txt-link-freetext" href="mailto:vision2020-admin@moscow.com">mailto:vision2020-admin@moscow.com</a>]On
Behalf Of bill london
Sent: Monday, March 08, 2004 4:09 PM
To: Vision2020
Subject: [Vision2020] Alturas Phase II
The message below was written by Duncan Palmatier, a Moscow Urban
Renewal Agency commissioner, about the plan to use tax money to expand
Alturas Technology Park.
BL
Law Office of Duncan Palmatier wrote:
</pre>
<blockquote type="cite">
<pre wrap="">Dear Moscow City Council:
I am concerned about the haste to move forward with Alturas Phase II.
After three years as a URA commissioner, during which time there was
very little activity, there is suddenly a rush to fund Phase II and
start construction this coming summer. I have the feeling that "Hoover
time" has come to Moscow.
City Supervisor Gary Riedner is pushing for a fast start to Alturas
Phase II. A short notice URA meeting is scheduled for this coming
Friday, March 12, at 7:00 am, to vote on URA funding of the project. I
probably cannot attend, but the meeting will proceed anyway. As far as
I can tell, I am the only commissioner to voice reservations about the
project. As I understand it, URA money will be used for infrastructure
(streets, lighting, and the like). The proposal is to have the URA
fund the full amount of the work. This contradicts Gary Riedner's
recommendation of two years ago that the URA should only pay for a
portion of a project, such as 10%, and let private developers pay the
rest. Hodge & Associates has estimated the cost of the project at
approximately $275,000. This is less than Phase I, I assume because
Phase II involves less land and fewer parcels. By funding Phase II,
"tax increment financing" means that a portion of tax revenues from
the Alturas area will continue to pay off bonds rather than go into
the general city tax revenues. If Phase II is not developed with URA
bonds, Phase I will be paid off within a few years and these taxes
will go to the city. The benefit of funding Phase II is that, if the
project is a success, then new taxes generated by employees of high
tech business, through income and sales and property taxes, will bring
in more revenue than if the project were not undertaken. I do not know
whether anyone has done a study to see if this was true with Phase I
or any other similar URA project in Idaho.
At the last URA meeting, the URA was asked to fund preliminary
engineering work by Hodge & Associates. Gary Riedner estimated the
cost would be less than $3,000.00. There was no suggestion the work
would be put up for bid. I suggested a cap of $3,000.00, but the other
Commissioners felt this was inappropriate, and one Commissioner argued
that all available URA cash ($8,000.00) should be made available for
the work. I voted against the appropriation. In light of the UI's
Boise project, which allowed unlimited bills for preliminary work that
turned out to wildly extravagant, I felt some URA control was advisable.
I questioned why Alturas Phase II could not be privately developed; to
wean private enterprise of government assistance by pushing it out of
the nest and seeing if it can fly.
Gary Riedner argued that Phase II will not happen without government
assistance. Apparently, the cost of private commercial development in
Moscow is too high.
LEDC Director Barbara Richardson Crouch spoke for the project on the
theory that, if the URA does not develop Phase II in accordance with
the RTO restrictions of Phase I (high tech businesses only), private
development will develop it in the more lucrative, but undesirable,
mini-mart fashion. It was argued that such a development would lower
property values at the existing Alturas.
Everyone seems very optimistic about the project and convinced it will
be a great success. Of course, everyone felt that way about Phase I,
too, before it flopped and the bonds had to be refinanced. We were
told that letters of intent had been signed by prospective tenants. My
inquires revealed that there are no signed letters of intent; rather,
a number of prospective tenants have expressed interest. This was, as
I recall, the same situation before Phase I was started. It was noted
that Schweitzer Engineering has started taking over more property at
the Port of Whitman development in Pullman, and that, as a
consequence, there are several tenants who must relocate and are
willing or want to move to Moscow. Some of these companies have
expressed interest in Alturas Phase II. However, at this time, no
company has signed on to build on a lot in Phase II.
Other than standard notices, no effort has been made to publicize the
URA involvement in Phase II.
I am concerned that this project is proceeding with too much haste and
not enough solid support from prospective tenants or the public.
Faithfully
Duncan Palmatier
Tel: (208) 892-2962
Fax: (208) 892-3853
Email: <a class="moz-txt-link-abbreviated" href="mailto:dpalm@dpalmlaw.com">dpalm@dpalmlaw.com</a>
.
</pre>
</blockquote>
<pre wrap=""><!---->
_____________________________________________________
List services made available by First Step Internet,
serving the communities of the Palouse since 1994.
<a class="moz-txt-link-freetext" href="http://www.fsr.net">http://www.fsr.net</a>
<a class="moz-txt-link-freetext" href="mailto:Vision2020@moscow.com">mailto:Vision2020@moscow.com</a>
/////////////////////////////////////////////////////
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</pre>
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