Economic Development Subcommittee — Columbia, SC
Date: 2018-07-31
Time: 09:00

COLUMBIA ECONOMIC DEVELOPMENT SUBCOMMITTEE MEETING AGENDA
 TUESDAY, JULY 31, 2018


The Columbia Economic Development Subcommittee will conduct a Meeting on Tuesday,
July 31, 2018 at 2:00 p.m. in the Mayor's Conference Room at City Hall, 1737 Main Street,
2nd Floor, Columbia, SC 29201.

Prior to entering the meeting please turn all electronic communication devices to the silent, vibrate or off
 position. All presenters are asked to speak directly into the microphone for recording purposes.

CALL TO ORDER
DISCUSSION OF CONSTRUCTION STRATEGIES AND GROWTH

1. Land Use and Design Development Policy

2. Affordable Housing Special Source Revenue Credit Incentive

OTHER MATTERS FOR CONSIDERATION ON AUGUST 14, 2018

3. Demolition Delay Ordinance

4. Partnership Approach for Completing Demolitions




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COLUMBIA ECONOMIC DEVELOPMENT SUBCOMMITTEE MEETING AGENDA
 TUESDAY, JULY 31, 2018


The Columbia Economic Development Subcommittee will conduct a Meeting on Tuesday,
July 31, 2018 at 2:00 p.m. in the Mayor's Conference Room at City Hall, 1737 Main Street,
2nd Floor, Columbia, SC 29201.

Prior to entering the meeting please turn all electronic communication devices to the silent, vibrate or off
 position. All presenters are asked to speak directly into the microphone for recording purposes.

CALL TO ORDER
DISCUSSION OF CONSTRUCTION STRATEGIES AND GROWTH

1. Land Use and Design Development Policy

2. Affordable Housing Special Source Revenue Credit Incentive

OTHER MATTERS FOR CONSIDERATION ON AUGUST 14, 2018

3. Demolition Delay Ordinance

4. Partnership Approach for Completing Demolitions




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MEETING DATE: July 31, 2018

DEPARTMENT: City Clerk

FROM: Erika Moore, City Clerk

SUBJECT: Land Use and Design Development Policy
FINANCIAL IMPACT:




Updated: 7/23/2018 9:21 AM Page 1
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MEETING DATE: July 31, 2018

DEPARTMENT: City Clerk

FROM: Erika Moore, City Clerk

SUBJECT: Affordable Housing Special Source Revenue Credit Incentive
FINANCIAL IMPACT:

STRATEGIC GOALS: Collaborate and partner with entities, Foster a healthy quality
 of life, Provide high quality municipal services


ATTACHMENTS:
  Draft_Affordable_Housing_Resolution (DOCX)
  Charleston Mixed Use Workforce Housing Ordinance (PDF)
  Resolution_2014_024_adopt_criteria_and_policy_On_real_property_multi_county_ind
 ustrial_park (PDF)
  Resolution_2014_045_amend_special_source_revenue_credit (PDF)
  Resolution_2015_049_sunset_tax_credit_for_student_housing (PDF)




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 RESOLUTON NO.: R-2018-XXX

Adopting a Policy and Criteria to Consider the Inclusion of Real Property in a Multi-County Industrial Park




 Attachment: Draft_Affordable_Housing_Resolution (4460 : Affordable Housing Special Source Revenue Credit Incentive)
to Apply Richland County’s Special Source Revenue Credit incentive to Real Property within the Corporate
 Limits of the City of Columbia developed for Affordable and Workforce Housing Projects

 WHEREAS, Columbia City Council desires to provide incentives for Affordable and Workforce
Housing Developments within the corporate limits that will help address the Affordable Housing
Shortage that currently exists, and

 WHEREAS, Affordable Housing for rental and homeownership will serve families with household
income at or below 80% Area Median Income (AMI) as defined by the US Department of Housing and
Urban Development (HUD) annually and adjusted by the City of Columbia Community Development
Department.

 WHEREAS, Workforce Housing for rental and homeownership will serve families with household
incomes at 81% but not to exceed 120% of the AMI as defined by HUD annually and adjusted by the City
of Columbia Community Development Department.

 WHEREAS, City of Columbia 2016-2019 Consolidated Plan indicated there were 11,069 renters
and 3,860 homeowners that pay 30% of their income in housing cost and defined by HUD as being cost
burdened.

 WHEREAS, the Columbia Housing Authority received over 23,266 applications in 27 hours for its
Section 8 program in July 2017.

 WHEREAS, Columbia City Council desires to incentivize projects designed and developed for a
blended income target market, and

 WHEREAS, the City of Columbia desires to promote mixed-income housing to reduce
concentration of low income housing in targeted neighborhoods. Concentration is defined as the
existence of housing problems, low-income households, or ethnic/racial minorities in a Census Tract at a
rate of 10 percent or higher than the City as a whole.

 WHEREAS, Affordable rents shall be an amount equal to 30% of an Affordable (80%) or
Workforce Housing (120%) household AMI. Affordable rent is the high HOME rent as published annually
by HUD and adjusted by the City of Columbia Community Development Department.

 WHEREAS, Initial maximum allowable sales price shall be an amount equal to 3 times 80% AMI
and 3 times the 120% AMI as determined annually by HUD and the City of Columbia Community
Development Department.

 NOW THEREFORE,

 BE IT RESOLVED by the Mayor and City Council this XXX, 2018, that the following criteria are
hereby adopted in order for Columbia City Council to determine when it is appropriate to include a real

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property or real properties developed as affordable housing projects located within the corporate limits
of the City of Columbia in a Multi-County Industrial Park in order for the development to qualify for
Richland County’s Special Source Revenue Credit Incentive:




 Attachment: Draft_Affordable_Housing_Resolution (4460 : Affordable Housing Special Source Revenue Credit Incentive)
 1. A minimum private investment of $10,000,000 in total project costs as allowed by
 Richland County and City of Columbia with no use of JEDA funds;
 2. The development must contain at least ___units of housing affordable to residents
 making between 30% to 80% AMI and ____ units of housing affordable to residents
 making between 80% to 120% AMI;
 3. The period of affordability shall be for 30 years, which shall be the subject of deed
 restrictions;
 4. Project must be completed within three years of approval of the ordinance from City
 Council certifying the project;
 5. Affordable units shall be dispersed throughout the development and shall be
 comparable in size, number of bedrooms, materials and parking to dwelling units in the
 development in which they are located. Exteriors of affordable units shall be consistent
 with and indistinguishable from the exteriors of other units in the project;
 6. Columbia City Council reserves the right to review (cost benefit analysis) and approve or
 deny any other Assistance that may already be available to development project.
 7. What kinds of projects is Council looking to incentivize: Density, Income, Mixed-Use

 BE IT FURTHER RESOLVED, that inclusion of a real property or real properties developed
 privately owned affordable housing projects located within the corporate limits of the City of
 Columbia in a Multi-County Industrial Park shall be ordinance and the enactment of such an
 ordinance is in the sole exclusive legislative discretion of Columbia City Council.

Requested by:

____________________________ ____________________________________

 Mayor

Approved by:

________________________________

City Manager



Approved as to form: ATTEST:

_________________________________ ____________________________________

City Attorney City Clerk


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 Attachment: Charleston Mixed Use Workforce Housing Ordinance (4460 : Affordable Housing Special Source Revenue Credit Incentive)
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 Attachment: Charleston Mixed Use Workforce Housing Ordinance (4460 : Affordable Housing Special Source Revenue Credit Incentive)
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 Attachment: Charleston Mixed Use Workforce Housing Ordinance (4460 : Affordable Housing Special Source Revenue Credit Incentive)
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 Attachment: Charleston Mixed Use Workforce Housing Ordinance (4460 : Affordable Housing Special Source Revenue Credit Incentive)
Packet Pg. 10 2.b
 Attachment: Charleston Mixed Use Workforce Housing Ordinance (4460 : Affordable Housing Special Source Revenue Credit Incentive)
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 Attachment: Charleston Mixed Use Workforce Housing Ordinance (4460 : Affordable Housing Special Source Revenue Credit Incentive)
Packet Pg. 12 2.b
 Attachment: Charleston Mixed Use Workforce Housing Ordinance (4460 : Affordable Housing Special Source Revenue Credit Incentive)
Packet Pg. 13 2.c
 Attachment: Resolution_2014_024_adopt_criteria_and_policy_On_real_property_multi_county_industrial_park (4460 : Affordable Housing
Packet Pg. 14 2.c
 Attachment: Resolution_2014_024_adopt_criteria_and_policy_On_real_property_multi_county_industrial_park (4460 : Affordable Housing
Packet Pg. 15 2.d
 Attachment: Resolution_2014_045_amend_special_source_revenue_credit (4460 : Affordable Housing Special Source Revenue Credit
Packet Pg. 16 2.e
 Attachment: Resolution_2015_049_sunset_tax_credit_for_student_housing (4460 : Affordable Housing Special Source Revenue Credit
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MEETING DATE: July 31, 2018

DEPARTMENT: City Clerk

FROM: Erika Moore, City Clerk

SUBJECT: Demolition Delay Ordinance
FINANCIAL IMPACT:

STRATEGIC GOALS: Foster a healthy quality of life, Provide high quality municipal
 services




Updated: 7/23/2018 9:21 AM Page 1
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MEETING DATE: July 31, 2018

DEPARTMENT: City Clerk

FROM: Erika Moore, City Clerk

SUBJECT: Partnership Approach for Completing Demolitions
FINANCIAL IMPACT:

STRATEGIC GOALS: Foster a healthy quality of life, Provide high quality municipal
 services




Updated: 7/23/2018 9:26 AM Page 1
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COLUMBIA ECONOMIC DEVELOPMENT SUBCOMMITTEE MEETING MINUTES
 TUESDAY, JULY 31, 2018

CALL TO ORDER
The meeting was called to order at 2:19 PM by Chairman Daniel J. Rickenmann.
 Attendee Name Present Absent Late Arrived
 Daniel J. Rickenmann   
 Tameika Isaac Devine   
 Howard E. Duvall   
DISCUSSION OF CONSTRUCTION STRATEGIES AND GROWTH

1. Affordable Housing Special Source Revenue Credit Incentive

Councilor Rickenmann said we need to look at how we balance historical and character
preservation with property owners' rights. We said in the beginning that there should be deed
restrictions. We have to develop standard incentive packages for our community. We have to
discuss how our committees effect the overall economic growth of the city. I would encourage
people to ask questions and be involved without jumping to conclusions.


Mayor Benjamin said this could be an opportunity to create more incentives for people to invest
in mixed-use, mixed-income housing. We can use levers of public policy to attract more private
sector capital. In terms of land use and design development, if we hadn't put the designations in
place so many of our historic neighborhoods would've lost their character. We must figure out
how to deal with that now.


Councilor Duvall suggested designating target areas for credits in addition to the general
ordinance.


Mayor Benjamin said we haven't seen the level of coordination that allows us to coordinate all
public assets. Our focus should be citywide. You can incentivize the behavior you want to see.
There is an imbalance in commercial property taxes; our businesses bear a significant burden. If
we worked to attract industrial development, the two school districts are interested in sharing
the benefits of economic development regardless of where it is located in the county.


Councilor Devine said we started with the template for student housing. Staff did some research,


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COLUMBIA ECONOMIC DEVELOPMENT SUBCOMMITTEE MEETING MINUTES
 TUESDAY, JULY 31, 2018
the Legal Department looked at it and drafted a proposed resolution for the committee's
consideration. This will make it easier for private developers to bring their resources to bear.


Ms. Melissa Gentry, P.E., Assistant City Manager explained that the resolution will precede any
project specific action. The resolution will be approved by both the City and it will have more
impact if the County adopts it as well. As we deem that projects meet the criteria you will be
asked to approve an ordinance. We need more guidance on what will be attractive. This is set to
offer a 50% tax credit. Is that the right amount? The City recognizes the value in offering
incentives, but also the need to continue to capitalize on the increased taxes for our general fund
operations. Does there need to be a mixed-use component or is it affordable housing units only?
Also, do the drafted criteria meet the vision of this Council?


Councilor Rickenmann said it is very important to have mixed-income. We want to integrate our
communities. Can we scale the criteria using a minimum and maximum incentive? We need a
mechanism for ensuring the affordability period is adhered to. We need to be specific on each
expectation.


Ms. Melissa Gentry, P.E., Assistant City Manager said we mirrored the Low Income Housing
Tax Credit (LITC) 30-year affordability period.


Councilor Duvall said the Charleston ordinance has a lot of elements that our proposal doesn’t
have. It has a more vivid description of making sure the affordable housing isn’t distinguishable
from market rate housing. They have a mechanism for establishing an affordable workforce
housing account. Developers without affordable housing could pay a fee into this account, which
would serve as a revolving fund for other projects.


Ms. Melissa Gentry, P.E., Assistant City Manager asked if this is intended to be an incentive or a
requirement?


Ms. Krista Hampton, Director of Planning and Development Services said Charleston’s [policy]
is voluntary. It is an overlay that you can apply for. The incentive is unlimited density or a
reduced parking requirement; it’s not a financial incentive. A lot of our places already have
unlimited density. Extra density may or may not be helpful.


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COLUMBIA ECONOMIC DEVELOPMENT SUBCOMMITTEE MEETING MINUTES
 TUESDAY, JULY 31, 2018


Councilor Devine said we were hoping to do something that’s incentive based and see how that
works. We were hoping some of these questions will be answered if Rebecca Best [Building
Industry Association of Central South Carolina] can help get developers to the table. The biggest
hindrance to them is the financial cost. If this doesn’t work, then we might need to add some things to
it.


Councilor Rickenmann said homeowners have the benefit of the tax relief, but commercial and
rentals don’t. Landlords are having to pay three months’ worth of rent for property taxes. That
affects affordable housing and development. These incentives can help.


Councilor Duvall said I want it to be mixed-use in terms of housing and retail. We should look at
Charleston’s ordinance and use it as an extra incentive if they develop mixed-use.


Councilor Devine said there are areas in the City where we’d like to encourage that kind of
development. There needs to be language to set the parameters if we want to encourage that.


Councilor Davis said we don’t want to saturate an area, because that creates a stigma.


Councilor Devine asked that the number of people on the waiting list for housing needs to be
added to the findings.


Ms. Melissa Gentry, P.E., Assistant City Manager said we reduced the minimum private
investment criteria to $10 million. We need to look at the recommended blend for the mixture of
income units. Is the 30-year affordability period acceptable? We set a project specific sunset
clause of three years for the developer to complete the project. Do you want to make that a
different length of time?


Mr. Ryan Coleman, Economic Development Director said with student housing, the investment
threshold included soft costs for financing, legal, and engineering. Would this be for
construction and land acquisition alone?



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COLUMBIA ECONOMIC DEVELOPMENT SUBCOMMITTEE MEETING MINUTES
 TUESDAY, JULY 31, 2018


Councilor Rickenmann said that will depend on where the development is and our process. We
need to create an expedited permitting process. You can go across the river and get a permit
within three weeks. We need growth where there is existing infrastructure.


Ms. Teresa Wilson, City Manager said our staff is giving a lot of their time and energy to the
Business Friendly Taskforce meetings that have started up again. If you all direct us to, we will
participate. For me, this is where the City is going to make a difference when we implement
these tools and policy changes with our processes with staff and/or the boards and commissions.
By working on these things that should help to move the other process forward.


Councilor Rickenmann said we are also working on a parking incentive. Some of the costs we
are offsetting are created by our own processes and committees.


Councilor Duvall asked that the definitions are made to exclude dormitories.


Ms. Melissa Gentry, P.E., Assistant City Manager said we need guidance on the amount of tax
credit that will be available. We might want to start at 30% for housing only and go up to 50%
for mixed-use. She recommended that the ceiling be 50%.


Councilor Duvall asked what impact Act 388 has on our businesses.


Councilor Devine said we talked about setting aside some of the money we are getting from
student housing. That would be our workforce development fund. We also talked about
inclusionary zoning and establishing an opt-out provision for developers who would then pay a
fee. We don't think it's permissible right now.


Councilor Rickenmann said a penalty would push more people away.


Ms. Gloria Saeed, Community Development Director said the idea is to provide more equity in
housing between those areas that may not have as much and those areas that have too much.


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COLUMBIA ECONOMIC DEVELOPMENT SUBCOMMITTEE MEETING MINUTES
 TUESDAY, JULY 31, 2018


Councilor Davis suggested that the policy specify areas for development over a period of time.


Councilor Devine said we don't need to dictate where development occurs. If we see that this is
working, but it's not occurring citywide, then we can bring developers to the table. We might
have to help with assembling land.


Councilor Rickenmann said we want to encourage growth in all areas.


Mr. Thom Chumney said the LITC Program is a good place to start. Around the country,
agencies are looking at income averaging. The City has great programs for those who are
economically challenged and a developer needs to see that. The South Carolina LITC offers a
provision for a developer to request an exit in the twelfth year without penalty. The development
can be sold and the new owner who can keep it in compliance or turn it into market rate. The
Columbia Housing Authority was successful with the Celia Saxon and Rosewood mixed-income
housing. My concern with mixed-use is what will happen if the businesses close.


Ms. Teresa Wilson, City Manager said Gloria’s area is working on how to develop the capacity
of builders who want to do this type of work. There are certifications that are required to take
advantage of federal dollars.


Ms. Gloria Saeed, Community Development Director said that’s what we need to do moving
forward. Each funding pot has different criteria. It’s our responsibility to educate developers
and non-profits. We are in a different place now in terms of needs, requirements, and
regulations. It’s important to have the developers at the table in order to determine the
attractiveness of this.


Ms. Teresa Wilson, City Manager said we’ve identified targeted areas and it is very important to
me that we gain traction in those areas. We are already assembling land internally.


Councilor Rickenmann said we don’t always have to be involved financially.



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COLUMBIA ECONOMIC DEVELOPMENT SUBCOMMITTEE MEETING MINUTES
 TUESDAY, JULY 31, 2018


Ms. Melissa Gentry, P.E., Assistant City Manager sought guidance on when to begin the process
with Richland County.


Councilor Devine said once we have a draft, we will start discussions with the County.


There was a consensus of the committee to review the revised affordable housing resolution on
Tuesday, August 21, 2018 at 9:00 a.m. With the assistance of Rebecca Best, developers will be
invited to the meeting. The proposed resolution may be presented to City Council in September.

2. Land Use and Design Development Policy

This matter will be discussed on August 14, 2018 at 9:00 a.m.

OTHER MATTERS FOR CONSIDERATION ON AUGUST 14, 2018

3. Proposed Demolition Delay Ordinance - Ms. Krista Hampton, Planning and Development
 Services Director and Ms. Robin Waites, Executive Director for the Historic Columbia
 Foundation

Councilor Rickenmann said we need to get the demolition ordinance on the table for input and to
come up with something that makes sense. We need to look at how we work through changes in
historic districts. It would be different if we had deed restrictions. You can't do solar panels.
There are inconsistencies. We need to look at what Seminary Ridge has done. Windows, doors,
and paint seem to be the biggest issues. It is out of our purview to determine how much a house
should be rented for. That's a discussion we need to have about the DDRC. They are out of their
purview a lot. The cost they are pushing on to development is becoming an issue. The DDRC was
originally created as a Landmark Commission that was incentive driven. This should be
discussed first on August 14, 2018.


Ms. Krista Hampton, Planning and Development Services Director explained that the proposed
ordinance has been revised based on the feedback received.


Councilor Rickenmann said we may want to attach the list that has been compiled by the historic
preservation community. I discussed the time frame with Robin Waites; 180-days is too long.


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COLUMBIA ECONOMIC DEVELOPMENT SUBCOMMITTEE MEETING MINUTES
 TUESDAY, JULY 31, 2018


This matter will be discussed on August 14, 2018 at 9:00 a.m.

4. Partnership Approach for Completing Demolitions

Councilor Devine said we do need to discuss the partnership approach for completing
demolitions, because I've been hearing from the community about the structures that need to
come down.


This matter will be discussed on August 14, 2018 at 9:00 a.m.

The meeting was adjourned at 3:45 p.m.

Respectfully submitted by:



Erika D. Moore, CMC
City Clerk




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