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December 9, 2019 URA Agenda E RIC S WENSON,C HAIR D EBBIE C ABRALES,B OARD M EMBER W ARD 1 C ITY OF W OODBURN L ISA E LLSWORTH,B OARD M EMBER W ARD II R OBERT C ARNEY,B OARD M EMBER W ARD III U RBAN R ENEWAL A GENCY S HARON S CHAUB,B OARD M EMBER W ARD IV M ARY B ETH C ORNWELL,B OARD M EMBER W ARD V E RIC M ORRIS,B OARD M EMBER W ARD VI A GENDA D ECEMBER 9,2019–6:30 P.M. City Hall Council Chambers –270 Montgomery Street 1.CALL TO ORDER 2.ROLL CALL 3.CONSENT AGENDA A.Urban Renewalmeetingminutes ofNovember 12,20191 Recommended Action:Approve the minutes. 4.PRESENTATIONS A.Urban Renewal Agency AuditReport2 5.PUBLIC HEARINGS None. 6.GENERAL BUSINESS A.Woodburn Public Art Program 34 Recommendation Action:Approve the expenditure of URAfunds in the amount of up to $25,000 for a mural of the historic PIX Theater on the building wall of its former location at 461 N. First Street. B.URG 2019.04: 425 N. First Street (Monte Alban) –NEW SIGNAGE36 Recommendation Action:Approve grant funds for the Building Improvements Program Grant Application (Program) from Tienda Monte Alban (Applicant) for $6,527; 50% of the overall cost of $13,054 for installation of signage on their business location at 425 N. First Street. 7.PUBLIC COMMENT 8.ADJOURNMENT COUNCIL GOALS 2019-2021 December 9,2019Urban Renewal Agency Page i Thematic Goals 1.Create an inclusive environment where residents participate and are engaged in the community (that is vibrant, safe and active). 2.Promote an environment that encourages sustainable economic health maximizing our geographic, workforce, cultural and community assets. Strategic Goals 3.Create an inclusive environment where Woodburn residents want to participate and are engaged in the community. 4.Develop innovative funding sources to help support the completion of capital improvement projects. 5.Grow and support strategic partnerships for economic health. 6.Explore the development of a non-profit consolidation facility. 7.Improve Communication and Coordination with School District on matters of mutual interest. 8.Completion of the First Street remodel. 9.Completion of Phase 1 & 2 of the Community Center Project including the formation of an ad hoc steering committee to review and recommend design. 10.Creation of the Dick Jennings Community Leadership Academy. 11.Develop a strategy to limit PERS liability. 12.Establishment of a Woodburn 20 year community-visioning plan. December 9, 2019 URBAN RENEWAL AGENCY BOARD MEETING MINUTES NOVEMBER 12,2019 DATECOUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY OF MARION, STATE OF OREGON, NOVEMBER 12, 2019 CONVENEDThe meeting convened at 6:50 p.m. with Chair Swenson presiding. ROLL CALL Chair Swenson Present Member SchaubPresent Member Cornwell Present Member CarneyPresent Member MorrisPresent – 7:13 p.m Member EllsworthPresent Staff Present:City Administrator Derickson, City Attorney Shields, Economic Development Director Johnk,Community Development Director Kerr, Project and Engineering DirectorLiljequist, Finance Director Montoya, Operations Director Stultz,City Recorder Pierson CONSENT AGENDA Urban Renewal Agency minutes ofOctober 14, 2019 A. Carney/Ellsworth… adopt the Consent Agenda. The motion passed unanimously. A RESOLUTION APPROVING TRANSFERS OF FY 2019-2020 APPROPRIATIONS AND APPROVING A SUPPLEMENTAL BUDGET FOR THE CREATION OF A PERS SIDE ACCOUNT Finance Director Montoya provided a staff report. Carney/Ellsworth…adopt Resolution No. 2019- 03 authorizing a $10,000 transfer to the Public Employees Retirement System (PERS) Reserve Fund. The motion passed unanimously. ADJOURNMENT Ellsworth/Schaub…meeting be adjourned. The motion passed unanimously. The meeting adjourned at 7:15 p.m. APPROVED ERIC SWENSON, CHAIR ATTEST Heather Pierson,City Recorder City of Woodburn, Oregon Page 1 – URA Board Minutes, November 12, 2019 1 WOODBURN URBAN RENEWAL AGENCY (A COMPONENT UNIT OF THE CITY OF WOODBURN, OREGON) ANNUAL FINANCIAL REPORT Year Ended June 30, 2019 2 WOODBURN URBAN RENEWAL AGENCY (A Component Unit of the City of Woodburn, Oregon) TABLE OF CONTENTS JUNE 30, 2019 Page INTRODUCTORY SECTION FINANCIAL IMPACT REPORT i-v AGENCY OFFICIALS vi FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS BASIC FINANCIAL STATEMENTS REQUIRED SUPPLEMENTARY INFORMATION COMPLIANCE SECTION 3 INTRODUCTORY SECTION 4 )­³±®£´¢³¨®­ 4§¤5±¡ ­2¤­¤¶ «#®­¢¤¯³ - i - 5 4 ·)­¢±¤¬¤­³&¨­ ­¢¨­¦ - ii - 6 7®®£¡´±­Ȍ²5±¡ ­2¤­¤¶ «0« ­ 5±¡ ­2¤­¤¶ «)¬¯ ¢³ - iii - 7 Budget 2019-20 50,000 150,000 3,088,500 75,000 400,000 100,000 3,863,500 %¥¥¤¢³®¥5±¡ ­2¤­¤¶ «®­4 ·¨­¦$¨²³±¨¢³² “post” - iv - 8 - v - 9 WOODBURN URBAN RENEWAL AGENCY (A Component Unit of the City of Woodburn, Oregon) AGENCY OFFICIALS JUNE 30, 2019 MAYOR AND COUNCIL MEMBERS Name Term Expires Mayor Council Members Staff - vi - 10 FINANCIAL SECTION 11 475 Cottage Street NE, Suite 200, Salem, Oregon 97301 (503) 581-7788 INDEPENDENT AUDITOR’S REPORT Report on the Financial Statements Management’s Responsibility for the Financial Statements Auditor’s Responsibility - 1 - 12 Opinions Other Matters Required Supplementary Information Other Information Report on Other Legal and Regulatory Requirements GROVE, MUELLER & SWANK, P.C. CERTIFIED PUBLIC ACCOUNTANTS - 2 - 13 MANAGEMENT’S DISCUSSSION AND ANALYSIS 14 June 30, 20192018 ASSETS Total Assets LIABILITIES Total Liabilities NET POSITION (DEFICIT) - 3 - 15 Statements of Activities Year Ended June 30, 20192018 REVENUES Total Revenues EXPENSES REVENUES OVER EXPENSES TRANSFERS TO PRIMARY GOVERNMENT CHANGE IN NET POSITION NET POSITION, beginning of year NET POSITION (DEFICIT), end of year - 4 - 16 June 30, 20192018 - 5 - 17 BASIC FINANCIAL STATEMENTS 18 WOODBURN URBAN RENEWAL AGENCY (A Component Unit of the City of Woodburn, Oregon) STATEMENT OF NET POSITION – GOVERNMENTAL ACTIVITIES JUNE 30, 2019 ASSETS Total Assets LIABILITIES Total Liabilities NET POSITION (DEFICIT) The accompanying notes are an integral part of the financial statements. - 6 - 19 WOODBURN URBAN RENEWAL AGENCY (A Component Unit of the City of Woodburn, Oregon) STATEMENT OF ACTIVITIES – GOVERNMENTAL ACTIVITIES YEAR ENDED JUNE 30, 2019 Revenues Total Revenues Expenses Revenues Over Expenses Transfer to Primary Government CHANGE IN NET POSITION NET POSITION, beginning of year NET POSITION (DEFICIT), end of year The accompanying notes are an integral part of the financial statements. - 7 - 20 WOODBURN URBAN RENEWAL AGENCY (A Component Unit of the City of Woodburn, Oregon) BALANCE SHEET – GOVERNMENTAL FUND JUNE 30, 2019 ASSETS Total Assets LIABILITIES, DEFERRED INFLOWS, AND FUND BALANCE Liabilities Deferred Inflows Fund Balance Total Liabilities, Deferred Inflows, and Fund Balance RECONCILIATION TO THE STATEMENT OF NET POSITION Fund Balance Net Position (Deficit) of Governmental Activities The accompanying notes are an integral part of the financial statements. - 8 - 21 WOODBURN URBAN RENEWAL AGENCY (A Component Unit of the City of Woodburn, Oregon) STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE – GOVERNMENTAL FUND YEAR ENDED JUNE 30, 2019 REVENUES Total Revenues EXPENDITURES Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCE FUND BALANCE, Beginning of year FUND BALANCE, End of year RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Net Change in Fund Balance Change in Net Position The accompanying notes are an integral part of the financial statements. - 9 - 22 WOODBURN URBAN RENEWAL AGENCY (A Component Unit of the City of Woodburn, Oregon) NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2019 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reporting Entity Urban Renewal Areas Measurement Focus and Basis of Accounting Basic Financial Statements Government-wide financial statements - 10 - 23 WOODBURN URBAN RENEWAL AGENCY (A Component Unit of the City of Woodburn, Oregon) NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2019 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Measurement Focus and Basis of Accounting (Continued) Basic Financial Statements (Continued) Fund financial statements Basis of Presentation Fund Balance - 11 - 24 WOODBURN URBAN RENEWAL AGENCY (A Component Unit of the City of Woodburn, Oregon) NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2019 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Measurement Focus and Basis of Accounting (Continued) Fund Balance (Continued) Governmental Fund Financial Statements Cash and Investments Receivables and Deferred Inflows Long-term debt Budget and Budgetary Accounting - 12 - 25 WOODBURN URBAN RENEWAL AGENCY (A Component Unit of the City of Woodburn, Oregon) NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2019 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Budget and Budgetary Accounting (Continued) Use of Estimates CASH AND INVESTMENTS Deposits Investments - 13 - 26 WOODBURN URBAN RENEWAL AGENCY (A Component Unit of the City of Woodburn, Oregon) NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2019 CASH AND INVESTMENTS (Continued) Interest Rate Risk Custodial Credit Risk - Deposits Custodial Risk - Investments - 14 - 27 WOODBURN URBAN RENEWAL AGENCY (A Component Unit of the City of Woodburn, Oregon) NOTES TO BASIC FINANCIAL STATEMENTS (Continued) YEAR ENDED JUNE 30, 2019 LONG-TERM LIABILITIES OutstandingMatured/Outstanding July 1, RedeemedJune 30,Due Within 2018IssuedDuring Year2019One Year DEFICIT NET POSITION CONTINGENCIES - 15 - 28 REQUIRED SUPPLEMENTARY INFORMATION 29 WOODBURN URBAN RENEWAL AGENCY (A Component Unit of the City of Woodburn, Oregon) SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL - URBAN RENEWAL FUND YEAR ENDED JUNE 30, 2019 Budgeted Amounts OriginalFinalActualVariance REVENUES Total Revenues EXPENDITURES Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCE FUND BALANCE, Beginning ofyear FUND BALANCE, End of year - 16 - 30 COMPLIANCE SECTION 31 475 Cottage Street NE, Suite 200, Salem, Oregon 97301 (503) 581-7788 INDEPENDENT AUDITOR’S REPORT REQUIRED BY OREGON STATE REGULATIONS Compliance and Other Matters - 17 - 32 Internal Control Over Financial Reporting Restriction on Use GROVE, MUELLER & SWANK, P.C. CERTIFIED PUBLIC ACCOUNTANTS - 18 - 33 Agenda Item December 9, 2019 :Urban Renewal Agency Chair and Members TO FROM:Public Arts and Mural Committee McKenzie Granum, Assistance City Attorney Chris Kerr, Community Development Director Jamie Johnk, Economic Development Director SUBJECT:Woodburn Public Art Program RECOMMENDATION: Approvethe expenditure of URA funds in the amount ofup to$25,000 for a mural of the historic PIX Theater onthe building wall ofits former location at 461 N.First Street. BACKGROUND: The City purchased the former PIX Theater in 2018. Dueto years ofneglect and disrepair, the City wasnot able to salvagethe building and demolished the dilapidated structure. The PIX Theater was aniconic building inthe community and held many stories for families andresidents inthe area. Therefore, in order to commemoratethe PIX Theater,the Public Arts andMural Committee has worked with a muralist to design a mural toinstall onthe remaining wall ofthe PIX Theater. DISCUSSION: The Public Arts andMural Committee identified the former PIX Theater location as a priority for installing public art. Working with J and SSigns out of Portland, the Committee designed amural that illustrates thePIX Theater as well asother key elements ofdowntown. Ifexpenditureapprovalby the Urban Renewal Agency isreceived, staff will work withthe Public Arts andMural Committeeto schedule, notice, andhold a public hearing to approvethe final design and move forward withthe project. Oncethe hearing is concluded and the Committeehas its final decision, itwill beforwarded to the City Council asa call up item on the next agenda following the public hearing. Following approval ofthemural project, the City will formally enter into a contract with J andSSigns tocompletethe scope of work. Agenda Item Review:City Administrator __x____City Attorney __x____Finance __x___ 34 HonorableMayor and City Council 9, 201 Page2 For FY2019-20the budget forthePublic Arts and Mural Programwas $100,000.Sufficientfundsremainin the budget to fund thisrequest. 35 Urban Renewal Agenda Item December 9,2019 TO: Urban Renewal Agency FROM:Downtown Advisory Review Subcommittee (DARS) Jamie Johnk, Economic Development Director SUBJECT:URG 2019.04: 425 N. First Street (Monte Alban) – NEW SIGNAGE RECOMMENDATION: Approvegrant funds for theBuilding Improvements Program Grant Application (Program) from Tienda Monte Alban(Applicant) for $6,527;50% of the overall cost of $13,054for installation of signage on their business location at 425 N. First Street. : BACKGROUND The Applicant leased the property at 425 N. First Street for a retail market and has completed substantial improvements with more than $137,198 investment in the building, funded in part by URA. (Total URA funds committed to date are below the maximum allowed per applicant/per property of $50,000 at $34,300.) PROPOSAL: With the interior investments made, the Applicant is putting the final touch on the building with a new sign (see attached). The Applicant has provided one estimate for the sign. He had reached out to other companies and did not receive additional bids. With the need to get signage in place to better market his business, the Applicant has requested consideration of the single proposal. Staff reviewed the proposal and does not feel itis excessive.DARS is recommending to the Urban Renewal Agency approval The overall cost of the signage for the building located at 425 N. First Street: Building Improvements Program Grant$ 6,527 Estimated cost of all improvements$13,054 Percentage of grant50% FINANCIAL IMPACT: For FY 2019-20 the budget for the Urban Renewal Building Improvements Agenda Item Review:City Administrator ____x__City Attorney ___x___Finance __x___ 36 URG 2019.04: 425 N. First Street (Tienda Monte Alban) Page 2 Program was $150,000. Sufficient funds remain in the budget to fund this grant request. SUMMARY AND CONCLUSION: The Program is intended to encourage and assist business and property owners to invest in the Urban Renewal District. This Application reflects the intent of the program by making improvements to the property and maintaining the useful life of the building. In addition, a retail occupant in the building will add value to the business environment to downtown Woodburn. CONDITIONS OF APPROVAL: 1.There is a 50% match requirement required for exterior improvements through the Program. Invoices must be submitted for reimbursement. No grant money will be disbursed until the project is completed and is approved by the Agency. 2.Grant and loan funds may be used for materials and services provided by licensed contractors. 3.Projects shall be completed within one year of approval in order to be eligible for reimbursement. Grants provide for a single payment after receipts are provided and all completed work is accepted by the City. 4.Licensed contractors will complete all work. 37 38 39 40 41 42 43