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<br /> May discourage higher density development and redevelopment due to the cost and risk <br />? <br /> <br />associated with standard absorption period vacancy. <br /> Imposition of penalties and fess may detract from a positive downtown business climate. <br />? <br /> <br /> Possible legal challenges associated with fees and property tax laws. <br />? <br /> <br /> <br />Should council decide to move this discussion from a work session to an action item, several questions <br />would need to be addressed: <br /> <br />a)What is the definition of “occupied?” (percentage, collecting rent, duration, hours of operation) <br /> <br />b)Is occupancy limited to certain portions of buildings? (ground floors, street fronts, etc.) <br /> <br />c)What is the size of the fee/fine? How is it determined? At what level would fees on unoccupied <br />buildings positively impact occupancy levels downtown? <br /> <br />d)Would there be exceptions? <br /> <br />e)Will it be possible to legally charge a fee on an occupied but underused space as it relates to <br />property tax law? <br /> <br />f)What are causes of vacancies? Are the vacancies concentrated in certain areas of downtown? <br /> <br /> <br />RELATED CITY POLICIES <br />The following policies and implementation strategies included in the Downtown Plan consistently <br />emphasize facilitating and supporting development: <br /> <br />Downtown development shall support the urban qualities of density, vitality, livability and diversity <br />? <br /> <br /> to create a downtown, urban environment. <br />Actively pursue public/private development opportunities to achieve the vision for an active, vital, <br />? <br /> <br /> growing downtown. <br />Use downtown development tools and incentives to encourage development that provides character <br />? <br /> <br /> and density downtown <br />Facilitate downtown development by re-designating and rezoning underutilized properties such as <br />? <br /> <br /> surface parking lot, to a commercial land use designation and a commercial zone such as C-2 or C-3. <br /> <br />In addition, the following Growth Management policies similarly encourage downtown redevelopment: <br /> <br />Policy 2: Encourage in-fill, redevelopment, and higher density development <br />Policy 3: Encourage a mix of businesses and residential uses downtown using incentives and zoning. <br /> <br /> <br />COUNCIL OPTIONS <br /> <br /> <br />1.Direct staff to perform additional research and bring back a recommendation regarding imposing a <br />fee on unoccupied space downtown. <br /> <br />2.Postpone the discussion and consider this issue in the context of an action plan on the “Downtown” <br />council goal. <br /> <br />3.Take no action. <br /> <br /> <br />CITY MANAGER’S RECOMMENDATION <br /> <br />The City Manager recommends that council postpone the discussion and consider this issue in the <br />context of an action plan on the “Downtown” council goal. <br /> L:\CMO\2007 Council Agendas\M070228\S070228A.doc <br /> <br />