HomeMy WebLinkAboutMinutes - Minutes - Planning Commission - Meeting Date: 4/4/2019WORKSHOP MINUTES
PLANNING COMMISSION
GLENDALE CITY HALL
CONFERENCE ROOM 2-A
5850 WEST GLENDALE AVENUE
APRIL 4, 2019
5:30 PM
CALL TO ORDER
The meeting was called to order at approximately 5:30 pm.
ROLL CALL
Commissioners Present: Commissioners Froke, Crow, Harper, Wilfong, Nowakowski, Vice
Chairperson Lenox, and Chairperson Hirsch were present.
Commissioners Absent: None
City Staff Present: Tabitha Perry, Special Projects Executive Officer, Thomas Ritz, AICP, Senior
Planner, Jessi Pederson, Assistant Director, Economic Development, James Gruber, Chief Deputy
City Attorney, David Williams, AICP, Planning Administrator, and Diana Figueroa, Recording
Secretary.
WORKSHOP ITEM:
OPPORTUNITY ZONES
Jessi Pederson, Assistant Director, Economic Development, provided information to the Planning
Commission regarding this item.
Ms. Pederson stated that Opportunity Zones are designed to spur economic development by
providing tax benefits to investors. There were 669 tracts that were eligible.
She said Glendale has six census tracts that were selected for Opportunity Zone benefits. She noted
these tracts include Glendale's downtown and industrial districts. However, actual census tracks
that met qualifications were approximately twelve and were all concentrated primarily in the
downtown redevelopment area.
Chairperson Hirsch asked what determined the qualifying factor on how they were selected. He
asked if it is the size of community, population or geography. Ms. Pederson said it was their
understanding that it was population demographics.
Ms. Pederson noted the area of 43`d Avenue, north of Glendale Avenue as seen on the map, did
not meet the qualifications for Opportunity Zone. She explained the areas with the most potential
to benefit in terms of new investments and redevelopment were the ones that were chosen.
Ms. Pederson explained the benefits for investors. First, investors can defer tax on any prior gains
invested in a Qualified Opportunity Fund (QOF) until the earlier of the date on which the
investment in a QOF is sold or exchanged, or December 31, 2026. She explained that if the QOF
investment is held for longer than 5 years, there is a 10% exclusion of the deferred gain. If held
for more than 7 years, the 10% becomes 15%. Second, if the investor holds the investment in the
Opportunity Fund for at least ten years, the investor is eligible for an increase in basis of the QOF
investment equal to its fair market value on the date that the QOF investment is sold or exchanged.
She noted that Opportunity Zone investments can be made through purchase of stock, partnership
interest or business property. She stated the Economic Development Department will help with
business and site information to any investors that were interested. She explained this was a
complex item with many moving elements. She was happy to answer any questions.
Chairperson Hirsch asked the Commissioners if they had any questions. There were none from the
Commissioners.
Chairperson Hirsch asked if there had been a committee that selected the six census tracts that
qualified. He would like to know how those six came to be selected and who selected them. Ms.
Pederson explained that when the information was rolled out in December, the Governor's Office
provided a short time frame for replies to be sent within a matter of weeks to the Commerce
Authority. She noted the time frame was such that they had to act fast to be included and select the
six before they were selected for them. Therefore, the Economic Development Department was
asked by the City Manager to identify the most lucrative investment opportunities using their
software called Costar.
Chairperson Hirsch thought that made sense. He added that this project seems to be pretty much
data driven in order to comprise the likelihood of investing. Ms. Pederson stated he was correct.
David Williams, AICP, Planning Administrator, agreed with Ms. Pederson assessment of the time
line in which this item had to be completed. He also remarked on the Manistee Ranch Townhomes,
proposed at 53`d Avenue, south of Northern Avenue, which relates to this item.
REPORTS AND COMMENTS
Mr. Williams thanked Ms. Pederson for her presentation and for taking the time to attend this
Workshop. Ms. Pederson stated she was happy to always come before them to provide them with
information since this was a complex item to understand.
NEXT MEETING
The next workshop of the Planning Commission is scheduled for May 2, 2019, at 5:OOpm in
Conference Room 2A, Glendale City Hall, located at 5850 W. Glendale Ave, Glendale, Arizona,
85301.
ADJOURNMENT
With no further business, the meeting was adjourned at 5:51 p.m.
Submitted by:
Diana Figueroa
Recording Secretary