00:00:11,730	Good afternoon, everyone. It’s, uh, four o’clock on Thursday. June 13th 2024, which is the Time and place for the regular or the called meeting of the Renaissance Authority of Bismarck, and I see that we have a quorum present. So.

00:00:29,030	We will proceed the first item of business would be to consider the minutes from the May 9th meeting. It changes corrections questions. If not Is there a motion to approve. I’ll make that motion. Is there a 2nd 2nd All in favor signify by saying, I I that motion carries We will now move on to the regular agenda.

00:00:52,000	Which include requests for Renaissance on and or downtown design, review approval, and the first item is regarding unit 301 at Broadway Center, and I believe Isaac is gonna Present. Explain it to us. Yes. Thank you chair, Christensen.

00:01:16,430	Uh, so authority members are first regular agenda item that Renaissance own product comes to us from Lee and Renes Nelson, who are requesting approval of a primary residential purchase Renaissance Zone product at 100 West Broadway Avenue unit 301, along with the associated local property tax and state income tax exemptions, And. Of course there is no associated Downtown design review with this particular project. So on the screen before you’re there.

00:01:38,170	You can just see a general outline of where the Broadway center in this particular project is within the boundaries of the Renaissance zone itself. The adjacent land uses to this particular area includes some residential and offices, uh, with some other uses, such as auto equipment stores and a bakery. And as I mentioned this project itself is located within the Broadway Center building, which was a previous new construction Renaissance Zone project and that was completed in 2015.

00:02:02,430	That project received the full property tax exemption at the time, except for the 17 residential condo units and these UN Are classified as single family residents under the state guidelines for the Renaissance own program, so the building minus the condos, uh, receive the new Property tax exemption and then came back onto the local tax rules in 2020 so

00:02:27,370	under the state guidelines for a residential primary residential purchase project. There is no minimum level of investment, but projects must receive all necessary approvals prior to the residents occupying them so of the 17.

00:02:52,770	Of, the 17 residential condominiums, 11 have utilized the program and most of those have finished their exemption period and come back on to the tax rolls as well. And. Then. Some units have been purchased, but, uh we’re occupied without applying for the Renaissance zone, so those are no longer eligible for the program in the same way that this one is applying for so if this project were to be approved, there would still be

00:03:09,100	two units that are still eligible for this type of project and staff have received a certificate of good standing. From the North Dakota Office of state tax Comm.

00:03:26,630	from the applicant and they would be eligible for a single family residence tax credits, which is an income tax credit through the state if they choose to apply for it, and some information has been provided by staff to the applicant for their awareness. The public was notified of this request via publications in the Bismarck Tribune on May, 31st and June, 7th and 32 Letters were mailed to nearby property owners on May 31st.

00:03:47,670	To my knowledge staff have not received any public comments regarding this project. And as a cumulative result of all the findings contained in the staff reports in front of you. City of Bismarck staff find that the proposed Renaissance zone project would not adversely impact public health safety and general welfare and is consistent with the development plan.

00:04:09,370	Comprehensive Plan Bismarck Code of ordinances and relevant state law. So. Uh, I’ll give the recommendation here, but I’ll also give a little back, uh, round onto why we’re giving this recommendation in particular because it’s a little unique compared to what we’re proposing in general for the development plan.

00:04:25,830	But staff are proposing a full local property tax exemption on the assessed value of the building for five years. Given the following facts, there is no minimum level of investment for eligibility for this type of project under state guidelines.

00:04:49,030	The Broadway Center Project as a whole back in 2015 when it was constructed was a new construction project, which was eligible for the full property tax exemption minus the residential condos at first and subsequent renaissance on Of, the residential condominiums within the Broadway Center building were then eligible for the full property tax exemption, given that they were part of the previously approved new construction project.

00:05:13,430	Therefore staff recommends approval of the primary residential purchase Renaissance Zone Project at 100 West Broadway Avenue Unit 301 as a 100% property tax exemption on the building for five years, as well as the state income tax exemption through the single family residence tax credit If the Were to choose to apply for that as well. Does the authority have any questions for me at this time? Any questions of Isaac? Questions. Thank you for the presentation, Isaac. Your wishes. So.

00:05:38,600	I think that this is kind of a sticky issue? Because you’ve got a The Fairness side of it. Is that everybody else that applied got the deal so The From from a fairness to the taxpayer standpoint. It would You’d want to approve it. But. The question is whether the county Is going to agree with that.

00:06:05,570	So before we move any further with this discussion, could we open the public hearing? Sorry about that. Thank you for reminding me of that, Isaac? Yes. So With the chair person. Some of that of our discussion may implement some of the public here. I. Guess I was not a lot here.

00:06:25,970	I just don’t wanna Hash out something. Or give some misleading, hypothetical situation because we haven’t discussed it because I think more than one of us at this table agree that this is a slippery slope and Approving this at 100 per cent.

00:06:44,970	I, don’t I, Don’t think meets the The intent of the memorandum of understanding that we have with the county. That would be. That would be my perspective. OK, so procedurally or Legally or do we need to hold a public hearing before we discuss it, OK? So. At this point we will open the public hearing on this request. Anyone wishing to appear on this matter. Anyone wishing to appear I.

00:07:07,230	See in here No. One so I’ll ask a third time is in anyone’s wishing to appear on this matter. If, not we’ll close the public hearing. I know we will have discussion. Thank you attorney Combs Appreciate it you it’s all Chair Christiansen. And When. I read this, Um II. I agree that this is It’s a double edged sword.

00:07:29,570	Everybody else is been qualifying for the program. But with the memorandum of understanding that we have entered into with With the other subs. This doesn’t qualify for the same type of tax. Fund or the funding that The. Others have have received and so I would not be in support of this. Are.

00:07:52,030	You saying You’re not in support of any or of a diminished or zero or that would be more of a question. Maybe for staff. I’m not sure how we arrive at that, right. So. So. What has been the annual Property tax that’s been received. Or or been The fee of charge to this unit for the last five years.

00:08:15,970	Sure I can respond to that. Uh, Comm. Munson. So for this particular unit. The current assessed value, including both land, and the unit itself is $490,000 490,200 dollars, So the annual property tax from that unit itself would be about 5700.

00:08:42,370	As for the the Building as a whole, the whole building, including the land is currently assessed at 20,000,300 or so So. If you were to approve this as a 100% tax exemption. It would just be on that 500 or so 1000 of that one particular unit and previous precedent, you know, staff are recommending going forward with that previous precedent because it was part of a new construction project at a time when the whole

00:09:05,570	building was eligible for that, and at the time prior to immediately prior to the project. Uh, of course, this project is the the whole block, so the block has Had a assessed value of 175,000. And.

00:09:28,130	Then there was 24 million or so, uh, verified investment put into the building, thus getting us to the current assessed value now, so that’s a little more, Uh, background on staffs reasoning up until this point. But the property tax that has been paid for the last five years on this unit. Is 5733. Approximately Yes. So that’s what Our agreement is, is that Value doesn’t change. That’s being collected.

00:10:00,800	That has been the understanding specifically for new construction rehabilitations again. This is a a more unique example in which, given that there is no required minimum level of investment. There will be no direct increase in the value, um, based off of simply occupying the unit in the same way that if you were specifically renovating it, or building something where there used to be nothing But.

00:10:22,030	You’re still taking that $5700 off the tax rolls for the next five years. If. You were to, uh do the 100% exemption on just the building, Not the land, But. You know the building? Yes? That would be true.

00:10:44,970	The Authority does have the power to approve a less than 100% exemption staff was not comfortable giving a specific recommended value because there was no past precedent to base that value off of for a reduced or partial exemption. Other questions. Comments. Oops other questions or comments since we’re open for discussion. Chair Chris and, um Isaac. So is the unit fully finished? 100%.

00:11:08,970	And if they’re just Buying it now and then trying to get the property tax. Uh, Comm. Zenker and authority members from my understanding. Yes, the unit is fully finished in the sense of it being a new construction project.

00:11:28,770	Anything Beyond that would be you know up to whoever were to occupy, but it has not been occupied before now, so it’s I mean it’s new to them New No one, and no one’s lived in there, but it is 100% finished as far as I’m aware that value of that unit is $472,000 give or take 4 94 90 ok, half million bucks. Sure? Yes, so that that’s and that’s Um I mean, My.

00:11:50,800	Biggest concern is that we took a large Effort to get this back to be even to have the conversations with this and with the county so I would I would not support Um, a benefit for this unit. Unless. They can have something or they make some Improvements that are north of the of the current assessed value. That’s.

00:12:15,170	I mean that would be I think that’s kind of my same thing. Um are they? Are? They making any updates? I mean when we say finish? Does it have, like a kitchen bathroom. I mean Is it livable or are we just talking? It’s four walls and they’re adding You know utilities to it and those kind of things authority member.

00:12:32,770	I can authority members from my understanding the unit is finished in the same way that any other apartment style condominium would be finished. In the sense of having a kitchen and bathroom and all of that, beyond details for that.

00:12:52,570	Staff is not sure we have not seen the inside of the unit, of course, and I agree with Thinker that You know if they’re not doing anything to improve it, and they’re just asking for a tax break that doesn’t quite sit well with me either. So, so I’ve got two thoughts here. Number one. I think that it Proving it would conflict with the memorandum of understanding. Uh However.

00:13:13,900	I think that perhaps the county commission should look at how it this has been done in the past and how others have taken advantage of it. If not if we’re not going to prove it, then we probably have to start talking about closing down the block, because if we’re not going to approve this one, we shouldn’t approve the other ones in the future.

00:13:29,470	So might as well close the block off. OK? I. Guess. We get to that bridge. At some point. I have a question for the city attorney. She just loves I know. Our. Um, Is there any concern about any Liability or unfair treatment.

00:13:56,200	Um, based on the precedent that we previously approved 11 of these So what? What’s your What are your thoughts on that janella, chair Christensen and zone members. You are changing the rules for the program as a whole. So as long as you’re changing the rules as a whole, I don’t have a concern about that.

00:14:17,970	At this point, um You have the right to modify your program that you’ve approved and so you have modified it as it’s grown so Yeah. So. You feel comfortable if we were to deny Or give a lesser than 100% or anything in between. OK, I.

00:14:38,000	I can’t guarantee no one won’t sue us, but I feel comfortable with it can never do that other questions for, uh, Janelle while we have her anyone. I think Chair. I would move that we deny the request. Is joe here? I keep hearing Yeah. I was trying to OK, Sorry ju I. I thought I heard your voice. So. Please feel free to weigh in if you don’t mind there, there’s been a motion.

00:14:54,770	I’ll I’ll wait for Correct order. OK. There’s a motion to deny 100% Deny it in entirety. I will make that second. There’s a motion a second, any further discussion. Mr chair if I could, Joel Uh, just let the record show I was here. Um, to hear, uh, Isaac’s entire OK, spiel. So don’t show up on the monitor.

00:15:20,130	That’s why we didn’t know you were with us. Sorry about that? No. Um uh uh. I want to just walk through my understanding, and and I think I’m understanding? Um, where Where the county is coming from on this. The. The project itself was was a new construction. Uh, it was If. I’m not mistaken.

00:15:43,000	There may have been some stuff there they had to demolish. In order to put this block up. But if not, it was like there was a significant investment that was made the Renaissance Zone project itself was approved and the owner had to make a decision on whether they took that property tax exemption on the building and as its

00:16:02,170	entirety and all the units, uh or Just the commercial space, uh, as they lease those things out and then as a selling feature or an option, have those units, um, as a selling feature, be able to apply to the Renaissance Zone for approval now.

00:16:24,600	Time may be the The bearer of bad news like the programs changed. Uh And if the program has changed, it changed, But. Um, as far as precedent is concerned, um My concern with is kind of what Um Mr Carlo was talking about was If. A. Similar residential project came up and they and the owner Goes to occupy. One of those units.

00:16:50,170	Is that also just not OK anymore, or is it Is it simply the length of time that it has been for someone to use the Renaissance? Um, exemption on that particular unit within that particular building like And you know, we we may have some pretty significant changes that we need to make to the current plan when it comes to

00:17:12,500	the single family or the residential pieces, if if the county Says that there’s now there’s a time limit on that as well. I think the, um Dustin framed it in a matter of fairness. Is that kind of what you’re saying. You’re agreeing with that, Joe? Not. So much a fair.

00:17:31,230	I mean the program can change and II? I think I. The city Attorney has it right on the city decides how the program runs, Uh, but the city needs the county to approve that that plan. But It seems like It seems like when we get to the door of OK. This looks good. This this fine.

00:17:48,030	There’s a new Well. We don’t like this. And. I’m. I’m becoming concerned that it will continue Well I. I think that from the matter of good faith to the county, the the idea of of rejecting it is probably the the safe way to go with the accounting side of it, But.

00:18:10,270	Uh we certainly you know, I think you’re right that if this is going to be A thing. Maybe. We need to talk about putting in place time limits on each project that and and that would apply to both condo purchases, leases stuff like that, just so that future situations Everybody knows the rules going in and we get the county’s buy

00:18:30,600	in on it that way. We’re not making discretionary decisions on the fly as much Yeah. I mean sorry to sorry to interject there again, But I mean The idea that this property this unit didn’t exist before the new construction began, And now it’s worth $500,000, and it’s being tax assessed as such.

00:18:52,530	This is the first benefit anyone’s going to see from that zero value to now 490 value and the answer is Yeah, but they’ve been paying it for five years. So we’re good. We’re not gonna exempt any more. They’ve been paying it because they decided to wait to have anyone.

00:19:13,300	Benefit from the Renaissance zone approval that was given on the project back when the project was done until the first owner of this the the first occupant owner were were to take. Possession of the of the unit. And. Now that that’s here. Our program.

00:19:31,330	I don’t know if we’ve changed that within our within our program right now, but it doesn’t sound like that’s going to be acceptable to most of the board. Mr Zenker. So just to just to clarify. My concern is not the duration of the project or anything like that.

00:19:55,900	My concern is that, um, we’ve we’ve entered in the memorandum of understanding with the county that there will only be, uh, a benefit in tax reduction of the current assessed value and above that, at this scenario, the current assessed value is has been determined and there is no improvement above that. To give that tax benefit, too. That’s. That’s mine has nothing to do with time. Am. I concerned about time.

00:20:16,630	Yeah, a little bit, but not that is not my deciding factor. My Deciding factor is the year it took for staff in the county to get on the same page and that we don’t in any way, um deter or or make a detriment As to, uh, how we got to that memorandum of understanding time is not a not an issue for me. This Guy.

00:20:39,730	Well, Authority members anchor kind of stole my thunder, but it in my mind, it’s it’s less about the timeline and it’s all about no increment of improvement beyond the the assessed value here, so we really don’t have Any amount that we can Give them a break on Um and I I am also weighing the fairness

00:21:03,170	aspect in my mind, but You know, it’s We have to make a decision today whether we’re going to apply our new Plan. Uh, To this purchase or if we’re gonna grandfather the ones that are eligible left in this development? And. I don’t think that would be the right thing to do either.

00:21:25,730	I think we should apply our new plan guidelines and move on. And if we end up having to close off the block as a result, then I think we should go ahead and do that. So. There isn’t a question in the future. Isaac the, uh remaining two units are shells. Is that correct. Do you know that? They’re show.

00:21:45,370	They’re unimproved units. I believe. Uh, the exact conditions of the units. I cannot specify any That’s not the state of them. We would want to determine before we close out the block, because, obviously if it was a shell can close the block today. No. No? No.

00:22:05,670	Not today? No, although chair Chris and if I may sort of to your point of if they are shells or not, I will just add that so? Yes these were these are residential condominiums, And. That was the idea of the building. Uh, owner and constructor at the time, so all I would add, is that The.

00:22:23,470	The owner, of course, chose to not take the exemption on those condominiums such that someone who would come in and buy them would experience that benefit themselves at a later point in time, whether or not that would be immediately after the construction was finished, or in this case several years afterwards if the property owner had built this in more of

00:22:39,870	an apartment style for renting, they then could have still been a new construction received the property tax exemption on the whole value of the building. So in the in the in between And. Some of these residential condominiums were not sold.

00:22:59,500	The property owner itself was still is still paying the property tax on those units that were not purchased by someone else. So I just wanted to add that for clarification. Correct. Thank you. Other comments, questions Um Believe we have a motion in the second and if there’s no further discussion, call the roll, please. The motion would be to deny and that was authority member, Munson and do thank you. Uh, authority members, Zenker. Yes.

00:23:32,100	Think No. Dvorak. Yes. Gavrilo? Yes. Guy? Yes Monson? Yes Chair Christiansen. No. The motion carries move on to Item three on the agenda. Development plan public hearing. Yeah and Daniel’s gonna walk us through that good evening Chair Christiansen Authority members. So.

00:24:02,100	This is the public hearing for the amendments to the city of Bismarck Renaissance on development plan? Uh, there should be no surprises to you in this text. It’s very much resembles what was present at the last month with a few tweaks. A few changes suggested by 40 member Guy and some others.

00:24:21,770	Otherwise, it’s it reads a very similarly, uh as a recap and also for the benefit of anyone listening from the public. I’ll just cover some of the The major changes that do occur here. There are a lot of minor changes, new definitions.

00:24:42,800	Uh, some, um, things that were added for the purpose of clarity, but the big changes were that the baseline would not be included within the exemption value for any projects, so we would only include exemptions for the incremental value from the time of the application to the time of completion of the construction. Uh, the assessed value would be used by default to determine what the baseline value is, however, uh you as authority would have the ability to make some adjustments for demolitions, either in the past or after a.

00:25:05,600	The application occurs, Uh, basing it on a case by case analysis of the value of the building and the historic nature of the building. So that is all part of this development plan. Uh, there are other changes related to the Constitution of the ransom.

00:25:22,570	Authority, uh, this county schools and the parks would all have the option of appointing a voting member from among that board to you, and that would be done at their option if they choose not to. The City Commission could also appoint an at large member in their stead.

00:25:42,970	The Amendment process would change so each political subdivision would have the ability to review amendments to this plan. Uh and it would go through all of those boards and then upon approval from all of them would be sent to the state for their final concurrence. The, uh and that does apply to boundary changes. It applies to text changes. Um, anything that would change within this plan. So.

00:26:01,100	Those are are the the major changes here? Uh, procedurally. Uh, there were also changes to the ordinance that are being introduced to the city commission at the same time as this plan, so we will time them so they both go to the City Commission for one review. Uh, you did already make some changes to your bylaws. That’s, uh, been finished. So.

00:26:17,630	Uh, this is the public hearing for this. So if you do wish to move forward and recommend approval, we will bring it to the City Commission next. So at this point, we’ll open the public hearing. Is there anyone wishing to Here on this item. Anyone wishing to appear anyone wishing to appear on Item three downtown plan.

00:26:37,370	Development plan hearing and seeing none will close the public hearing. So What are your wishes? So, I I’d like to see a discussion as to whether we need to inject any new amendments to address the What? We just Discussed into this now, because if we’re gonna do it, we might as well do it now. What.

00:27:01,970	Were you thinking of an amendment? Let’s start there. Um Number one. Well, I we I, daniel would we need to have another public hearing for any amendments to this or OK for ordinance? So? This is the plan. Not the ordinance plan? Yeah.

00:27:30,970	The Ordinance would require republication if there are major major changes, probably, but we’re doing that at City Commission with the public hearing for the ordinance portion. Is that correct. That’s right. OK so as long as we do That for the ordinance portion of it. It may not be as An issue for this, OK? So Are there any other projects? Where Situation that we just were discussing would be applicable.

00:27:54,770	So, Uh, 30 member Gau? Yeah, we had a little sidebar conversation during this to to ask this exact question. The answer, in my opinion is no. The. Only. Other ones were are potentially those other two unsold units, uh, within the Broadway Center Broadway Center was a little bit unique.

00:28:13,000	It was a condominium building that was built as a new construction. Uh and the owner did opt to wait until all the condos were sold. Before, that exemption period would begin so that that’s the only one that would take For. That purpose.

00:28:31,500	Uh, any new, uh, buildings like if a new Broadway center were to come in, and a new construction were to be approved, Uh, you could simply just have that conversation at that time and then determine Uh what, When that exemption period would take effect, and they may wish to just take it up front. If if there were to be a timeline period. So I. I don’t think it would.

00:28:49,300	I think it could still fit within the existing development plan as long as any new condominium building were to be discussed. OK? Thanks daniel. Other questions so I think I’d like to make a motion to Recommend closing the Broadway center block. And, then adding into the development plan. A fiveyear time limit on any condominiums. In future approved projects. To utilize the exemption.

00:29:18,670	Would that make sense? The closing of the block. That’s not part of our You can’t do that at all. Oh OK that you could separate process, OK but separate from this. OK.

00:29:49,630	Then then I would retract that motion and just make the motion to add a five year time limit on utilizing the exemption for a condominiums in future approved projects. Or a second. Is there, a second to the motion. I. Second for discussion moved in seconded and open for discussion. Nancy I. Guess, I.

00:30:23,200	I’m feeling like the timeline is is Arbitrary because You know if if if the condos are built, and they’re just a shell In a might take five years to sell all of them. Then. The buyer that buys it. You know. Five years and one day after You know that one day after the five years runs out You know that feels to me like that’s unfair because they now are going to invest in there’s gonna be an incremental improvement in that property.

00:30:46,630	Um, I think that You know as long as if if we have to, um, maybe amend the plan to make it clear if there is zero incremental improvement on a property As in this case, and maybe it’s the case with these other two units that are eligible.

00:31:07,130	Um Then there is no uh There is no, um, benefit to the buyer. So I know that’s kind of how I feel about it. OK? Yes, Christa. I was just I agree with Guy that, uh, if it’s for improvement of the building, and not just because I bought a unit and um, but if there’s an incremental You know,

00:31:30,000	And. If. You’re just buying the shell. You’re making an improvement to that building and it could be that they buy the show and they make it into an office so that still could be, you know, and not just a private apartment, either or condo.

00:31:50,270	Others well and and exactly so the Renaissance zone is to help with the improvements. So if you buy a shell and you make the improvements, that’s where the benefit is coming from ground zero to If. You will the completion of that project. I also agree. If, you’re buying a completely furnished unit to try to get the Renaissance on that doesn’t wash.

00:32:10,000	But if there’s improvements, Of course it should be in the plant. So. That kind of answers The question that we don’t need five years. 10 years. I don’t think you need a time I agree. Mr chair if I could just jump on the back of that, so that’s exactly what just happened. We approved.

00:32:28,800	A Renaissance project to build new It took a long time for that unit to sell. Because. What was the value of that unit. When. There was nothing there. Zero, right? Now. The value is 500. We’re seeing the first person after that new construction tried to take a benefit, and we just said no. Yeah, that That’s exactly what just happened.

00:33:00,700	The, the the previous units that sold Where When. We’re talking about a shell versus this one with no improvement. How was there. No Improvement. I’m sorry, but how is there no improvement when there was no building. It was not existent when this renaissance project was approved, right? Yeah. Am. I am I incorrect Here am I understanding this incorrectly? I don’t think you are.

00:33:27,470	OK? You can see my confusion, then, right? Yeah. Chair. If. I could sure 30 member once in the difference here, though. In the county’s eyes. We’ve been collecting taxes on that completed project for the last X amount of years. Now.

00:33:53,300	You want an exemption to go to zero tax collection for the next five? That’s the concern that the county has Now that tax burden is gonna go on to the rest of the residents in burly county because we’re giving a tax exemption on a completed project now, if there was improvements on it, and this went from 5 million to $6 million Then.

00:34:17,570	Absolutely there would be a Renaissance zone program for that million dollars of increase without a doubt, because that’s the improvement part of it. But. The taxes have been collected for this property for the last X amount of years, and that’s the concern. The county has OK so if we hold off on assessing a unit that wasn’t occupied, we’d be OK. But.

00:34:40,700	What? What confuses me Is this discussion of a shell versus non shell because the sh the shells are going for close to a half million dollars so they’re half million dollar units to begin with Whether. There’s a piece of carpet in there or not. So so. It’s irrelevant Whether it it there’s improvement past the Shell point.

00:34:59,730	It’s either a unit qualified for the exemption or it’s not. Yes, I I’m Sorry 100% agree. So it and and if we don’t know which ones are sold as shells and which ones are sold, ready to move into by the builder, then there’s no way for us to make that distinction anyway. But. In. This case, The Proposed investment is zero.

00:35:26,500	So that’s the concern I would have with it. There’s no improvements being proposed. I think there’s I think there’s a fundamental disagreement? Maybe on my part. On when this project was approved for a Renaissance zone. That was when there was nothing there. But. Can.

00:35:53,100	I ask a technical question when the individual who For for applied for the Renaissance zone to build the building. They had the option to take the Renaissance zone as a choice, whether or not he had the condo sold, not from the beginning. Correct so or not, so they they did take the renaissance on for the commercial portions of the building.

00:36:10,770	So there were the Broadway Grill and other things so that that has already that exemption period is already come and gone. They had that the five year period went and ended. Each of the condos have entered into their own five year periods. One Two to recall is there is a income tax exemption per, um, component to this as well.

00:36:28,430	So if the developer had taken the property tax exemption at the front end and got in the five years while it was sitting empty, uh, they would not have been able to utilize that income tax portion of the exemption, so by waiting until they become occupied They? That’s, They could get both income and the property tax exemptions.

00:36:46,270	So right, so he he is. Basically saying as an incentive to buy these condos. You will then be qualified for the you possibly it. I’m to say possibly could get on the third of being exempt based on the Renaissance, Correct. So. He sent it as an incentive. Not necessarily as hey, I.

00:37:11,130	Put the investment in so guess what? You get the tax break. Right. He’s using this as a selling point for his condos. If, I can enlighten everyone. The, Uh, cell coverage isn’t great down here, but there is a unit for sale in the building right now for 549 9 that’s fully finished. Just to correct the occupied or not. Yeah, So.

00:37:34,570	It’s occupied Now. It’s fully finished so so my contention is that we’ve moved the goal posts on the project in front of us earlier so that we’re in sync with the county and not aggravating the situation with the county. I’m just suggesting that we create a permanent finish line for future projects.

00:37:55,300	So future buyers know what they’re getting themselves into in future projects. Mr chair if I could, Joel Uh, just to kind of follow up on that. Doesn’t I. The reason I wouldn’t support it is because it’s too.

00:38:14,730	It’s too narrow of a of a it fixes this particular problem, I think, but I think we need to look wider off and say And and and make sure that we’re encompassing. The problem is that it was assessed. It was the the the The Renaissance owner was approved The prior the project was approved for Renaissance Own. And, the first benefit of a portion of that project was deferred. Uh, we we’ve heard a couple of times timeline doesn’t matter.

00:38:38,030	But in this case, it does because At some point between completion. That property, All of it, Even. This unit is assessed. And. What I’m hearing is that the county says once it’s assessed And. You have to have even more incremental value increase. To get this program’s benefit. And.

00:39:00,500	If and if that’s a Yes, then it’s not just condos right it. It’s anyone that builds a building and the first benefit is after it is first assessed. That would be lease projects that would be owns that would be new construction. Reno, like all of that matters. And. It isn’t just condos. It’s not just properties that end up being for sale.

00:39:30,970	It’s how the program fundamentally works. Currently And. Uh, the the the fact that it gets assessed is that trigger for the county from what I’m hearing. Yes, it has to be assessed in order to get the exemption. So yes. Yeah.

00:39:54,970	So any new construction any new construction at all? Would Where they where that is going to be further sold, or that benefit is going to be passed on to someone else. Other than the developer who develops it. Would would potentially be at risk for getting assessed. And then Selling that and allowing that other that future party to have that benefit. If I made.

00:40:21,100	My understanding is based on this proposed development plan for a new construction project that would be approved going forward, the baseline would be taken at the time of that approval and is not what I’m hearing from the county today. The County says. Once. It’s assessed. We’re done. Well I. I.

00:40:36,670	Guess I’m, and I don’t want to put words into any of the authority members mouths but I. I think this project is being treated differently because it was approved prior to these changes being made anything going forward, we would use the baseline is that if that some how I understand it That’s our understanding. Mhm. So Other discussion. Uh, there was a motion that was there a second.

00:41:01,200	I think you second for Mr Munson. I like Dustin’s thought process in this, but I’m sure, I’m Not. Sure, five years is the right Target, because if you take another condo situation like this And. It takes 2 to 3 years to build. You start after the construction is done. But. Then you start selling condos.

00:41:27,300	Dustin’s example is it’s five years from when the job or the project is done. So if you don’t get your condo sold in that first five years Then they fall into, you know, they don’t fall into this program is five years enough. In this case it’s been nine years, so I’m.

00:41:43,530	I’m guessing the developer would agree with you. Five years probably isn’t enough, and that’s why I wanted to question the five years and and the five years was just a starting point to suggest, you know, because the program’s five, you know, just as a consistency in numbers, But if if there’s an a desire to go with a different

00:41:59,300	number, you know, I. I think that the issue here is more of having a policy in place so that Investors and buyers know what they’re getting into. Well my personal opinion. We continue to water down and and neuter this plan. Um At the request of one political sub.

00:42:19,700	We’re not going to have any more developers that are going to be worried about this. That’s for some, the intent. I believe, mister Chair. What’s up, Joel. I believe that’s the intent by some Could be. I don’t know That’s an editorial comment So II.

00:42:37,870	I think a program should be fair whether or not we like it or not, you know existing or not, so it should have rules and structure where everyone can make sense of it. And. We can’t we gotta? We’ve gotta iron that out and make it correct and So that we know and everyone knows what they’re getting into. Yeah. OK other discussion. Go ahead.

00:42:55,900	So for the purpose of that if we go based off of this nine years Do. We do 1015. I mean we could say 25, but then we’re back down to again A timeline That doesn’t seem realistic, either.

00:43:16,200	At the same time the program didn’t exist for a short period so they couldn’t get it if they wanted to in that window, either. So, you know, I mean there’s there’s so many variables in this Other discussion. If, not we will call the roll. He’s ready for that, Sandro Um, So. This is for the five year time limit. This is for a five year time limit on unfinished or no. Excuse me well.

00:43:41,370	You didn’t use the word unfinished did you for for For units sold within a previously approved project. I just call Ro. You’ll be all right. See a video. All right? Well. Go ahead and call, please. Authority member fink. No. Of work. No. Gavrilo? Yes. Guy? No. M in no. Anchor. No. Christiansen. No, that motion fails. So Daniel Well. We.

00:44:27,330	You come to a make up. So. Uh, you could either choose to, uh, prove, as is or, uh, make any other changes. You would like I as I mentioned opinion the way this is written right now, you would have the ability.

00:44:50,770	Uh, when you face a new new construction project that comes before you to, uh, put any terms on the, uh on when in that that exemption period would apply, recall you You already have. There’s an 18 months.

00:45:10,500	Um, time period already in place for completion of our project, and if they don’t complete within that 18 months, they come back to you and ask for ask for an extension and if they’re moving along usually grant that, uh so you could certainly have that conversation at time. If. You do have condo projects that you that are here.

00:45:28,100	Just so everyone understands what those would be, but the way this is written, they would still be entitled to that entire incremental improvement value, which I think is everyone Agree with Okay? Mr Chair. I do like the way you’re dusted. I do like the way you you’re going to. I Think you’re too again.

00:45:44,530	I think you’re too narrow and I would I wouldn’t mind a little bit of time being able to mull over the right way to handle this, uh and be able to work with Dustin Between meetings to to try and figure out something that I think would make sense. But I, I don’t wanna be too narrow and I wanna be exact enough where people can understand what it is. We’re doing. In.

00:46:00,170	The meantime, do we hold up the approval of the plan, which has to go through a lot more vetting steps, I. I would move to approve the plan as presented. Even, though we know there might be you might be more that we don’t even know about yet. There’s gonna be adjustments throughout its entirety, You know, but let’s we’ve worked six months on this.

00:46:16,300	Let’s get this moving so that it can get back to all the subs and we can get second. OK. It’s been moved and seconded that we approve the plan, as is or as Currently is Any further discussion on that. Yes, of course, I swear it’s not.

00:46:33,770	How hard, is it to to change it then? Like if we need to make an amendment to the plan, does it have to go through the whole process again? Or like, so if we come back and say we’re gonna say it’s 25 years, whatever right and then do we have to like, say we’re gonna do this and then take it all the way back through again.

00:46:47,800	So So, The men of our, uh yes, it would to demand the planet would to put a condition on a particular project. I don’t believe you would have to go as long as you’re not as long as you’re staying under the amount. You can question there. No.

00:47:06,370	That’s all I wanted just for my own my understanding of the agreement was any changes would go back to all the political subs for approval. Commissioner’s anchor. Um, I’ll just remind everybody that we only have six months left on the period. Yeah. Right, so we’re gonna be back here in Bef before you know it. Yeah exactly.

00:47:27,430	We’re gonna have to amend that plan again to include the hopefully five years scenario. Any further discussion, Joel Oh, just to make the comment that once we do this approval That. That’s what the trigger is to go in front of all the other political subs to get approval on any other changes. Correct correct.

00:47:47,530	Yeah so so kind of to to follow up on your answer to to Mr bark it like once we do this approval, then any change needs to go to all political subs If we if we wanna make a change an amendment to the plan? Yes correct. That is correct. Joe.

00:48:07,170	Is there a number that you would prefer, or do you think that perhaps that, uh, we should just recommend the developers take the full exemption on the front end so that it’s not an issue for them. Yeah. I mean I? I don’t I don’t see why. Given Given. What happened today. I. Don’t see why a developer would ever risk Not taking that all up front. OK? Any further discussion.

00:48:31,100	If I may add one thing and maybe maybe I wasn’t entirely clear in this So. My impression was that this change would also be requesting the extension of the Renaissance own program and that we wouldn’t go through all of the boards twice to do that.

00:48:46,700	But if if we wanna make sure everyone is understand that and when we do present it to the City Commission and the boards, we will include that as part of the request, and then can I make a request so long as it’s not in motion. No make a request of just train it like as we go through these and make This sort of stuff comes along kind of make a running list.

00:49:02,100	Just so we when we goes back to changing our amendments that we highlight things like this things to discuss. Daniel. Isaac are good at that. I’m just That’s it. Um, any further discussion on the motion. If not You. Anything else On the any discussion ready to go? So. Thank you chair please call the roll. Sandra.

00:49:26,130	Authority member Devora. Uh, yes, Gavrilo? Yes Guy? Yes Monson? Yes. Zenker? Yes. Think Yes. Christiansen. Yes, the motion carries. Thank you everyone, Um, Item four on the agenda would be a report from the Downtowner. Kate asked me to tell you that, uh, she and dawn are busy.

00:49:48,670	It is their annual wine and art and wine walk downtown this evening if you haven’t signed up for that, you can probably still still get in on that. Yeah. And so she was not here. She did not, uh, I talked to her earlier today at the parking authority, and there was nothing earth shaking to report there. Um, the next regularly scheduled meeting would be July 11th.

00:50:05,300	Isaac. I just have one item of other business. Uh, churches and authority members. Just a brief update that moving forward, we’re going to be changing a little bit of how we deliver packets to you. You will still so starting at the next meeting.

00:50:22,430	You will still get the Virtual packets sent by email at the same regular time, But, then we will not mail the packet to you, Uh, for a physical copy. If. You want a physical copy for the meeting itself? We will ask that when we are doing our quorum calls and we will bring one for you at the meeting, so you don’t have to worry about you know ta

00:50:36,700	taking yours from home or or forgetting it. Save a tree. That is all I have chair. All, right? Anybody else have anything for the good of the order or technical advances have been strangely quiet to be just enjoying the circus, right? Um and again, assuming we have a reason to meet our next

00:50:57,970	meeting would be July 11th, and if there’s no objection, we