Good evening, everyone.

Welcome to the committee on finance regular meeting.

It is Tuesday, December 30, 2025 at 53 p.m.

Madam Kurt, would you kind of lead on the room?

Present.

Vice Chairman Taylor is a safe counselor and the bar.

Present.

Councilwoman Grace is absent.

Counselor Sanchez.

We have three present and two absolutely out of bottom.

But the record reflect that we are joined this evening by Councilman Oscar Vaugus.

Thank you for joining us.

Larry Nancy.

And uh staffed by our famous city solicitor that is fancy who's dressed very fancy.

Yeah, I'm free.

I was free to get like that.

It's a good look.

That's a more okay.

Um Madam Clerk, kind of read item one into the record, please.

An ordinance for healing ordinance chapter number two thousand nineteen dash fifty-five number fifty-four approved December thirteenth, two thousand nineteen as a negative twenty-few dash seventy-two number four twenty-nine adding taking a fact by December twenty-first, two thousand twenty-two, entitled an ordinance establishing a tax stabilization agreement for E two thousand reality lc located on Assessors Play 13 class 232, 233, 234, and 235 by 41 Walkman Avenue.

Okay, who do we have here tonight?

Chief, will you testify on this matter?

Can you please send your name and then put the record?

Well, I was saying she's buying to also sit above it.

Thank you.

Thank you very much, Chief.

So the matter before us tonight is to repeal a TSA that was given by this body on that as the clerk finally uh read December 13, 2019.

Um it's my understanding that the uh the owner has requested that this matter be repealed.

They do not want the TSA, and as I understand it, they have not benefited from the TSA.

They haven't built the building, they um earned no tax credit or abatement or any tax advantage.

Could you please um tell us about that?

Some out of it.

It was uh intended to be a uh part of that included combination of commercial and residential properties.

The owner was unable to secure adequate financing, and tried on multiple occasions, and then uh finally uh had to uh give way of no time during any time to that intervening years of adoption of tool of the tax legalization and the cardiac that they receive a tax bill lower than all the amount of taxes would have been as a result of those changes.

So it's fairness working with the assessors office perhaps spoken to uh uh assistances was a shop.

We thought that uh there was no benefit, therefore we expect that uh there will be no reason to interfere with the TSA orders for its entire uh in its totality.

Okay, so uh so administration is a support, I read the administration of work of the administration.

I briefly administration, I've worked with the administration as I said I've talked about the assessment in this particular matter.

Um we see no reason why we would uh we would stand with the opposition.

Okay.

Uh committee members, any questions?

No, so we're gonna end the block.

Um just a quick question.

So have they been paying taxes on it as a vacant piece of property?

Like they've been paying.

It's just so no tax benefits, they were making their payments.

Yeah.

Well, thank you.

Uh Chief, so they've been paying the regular taxes as that's being uh can I note yes, please.

Are they able to let's say in the future they can they reapply again?

I would defer to solicit.

I think these matters taken with all that register, I think.

Uh yeah, I think they could provided they meet the criteria at the at the later date.

Yeah, I think if they follow the criteria for solicit mentions and they fill up proper paperwork and it's deemed to be a benefit that uh they would uh provide to city and city residents or the year of which is located.

I think the council can take it on consideration then again and perhaps arrive at the same decision, but this one did not move forward because they could not find adequate or uh substantial financing.

Would be a new application correct?

So they'd have to go.

Your goals just need to be seen to repeal repeals it its entire doesn't do them any harm, no.

They can come back to the table should they want to or uh be in a position.

Council and Sanchez.

Thank you.

Uh thank you, G for uh presentation.

Uh my question is like what like what what does like what's this level process like the city used to kind of keep charge of this?

Like it seems like a kind of a long time, but I don't know, is that kind of uh normal and the application is that they have generally done online?

And there's a range based on classification based on the size of the project that give that that determines the length that the TSA can be contemplated, and we use the current value of the base year.

The first two years are at base, and then from that point on, we make a determination how they would stabilize and how they would gradually increase over the time of the ration of the agreement if it's a 10-year agreement.

And we always say that the county have that uh that's subject to the change in case during the period of reval, a building or land should change during that period, then the the calculation would be reset again, meant to be the benefit of the city.

If this is the higher tax, if the applicant would have to yield back some of the savings that they would entitled to work.

It's a pretty straightforward process.

There's a number of documents that must be included.

Um as you may recall, three weeks ago we gave testimony on behalf of three others at the chair.

You have uh uh scheduled them before a public hearing.

And in that regard, with those uh those documents we presented the fiscal notes that show what the act the stages to the applicants be discussed in full.

Uh they'll go before a public hearing now, and then they'll come back before this committee to be considered there as a bowl to be taken out of grade, and then once again, before the full council for votes hours.

So it's uh it's an involved process, but one that's necessary as well.

Um can I please yeah, no, I I definitely understand like the like the kind of like a general TSA, but I guess what I'm asking is they um is it out of the ordinary for uh a project to get approved a TSA?

Um, and then just did nothing get built there.

Is that like what happened?

Was that one as was unable to secure financing?

Is that like what does that have like any like locations for the city?

Is it by no I think each individual developer or applicant uh would need to be assured of themselves?

Um could they complete the project, or do they have the ability of their own means to provide financing, or whether they were seeking capital to a to a bank or anything of some sort of um I don't know what the conditions were that led to them not being able to secure financing, but I presume it was because neither market rates would have not as affordable or the access to credit capital was not there.

Yes, anything else?

May I entertain a motion?

Motion to um recommend that we repeal this uh sorry motion made by councilman and law second by councilman Sanchez all in favor of size application carries the matter um is uh we're recommending it to be repealed.

Okay, okay, item two.

Please read that one.

In ordinance, repealing ordinance chapter number 2021-15 number 426, having taken effect on November 15, 2021, a title and ordinance establishing a tax stabilization plan for 321 next street.

second right councilman sanchez all in favor size application carries the matter um is uh we're recommending it to be repealed okay okay item two now please read that one in ordinance repealing ordinance chapter number 2021 number 426 having taken effect on november 15 2021 a title an ordinance establishing a tax stabilization plan for 321 next street um if do you want me to do a bit of an introduction if i could proceed your testimony uh for the benefit of of uh my committee uh members on this is a property that had a tsa that was functioning active on and the property was transferred to swap on and um they are moving in a different direction they're trying to um try to figure out what uh direction they want to go in there's more information that we need to have before us before we can make a decision on this but at this juncture i think that the best posture not to hurt anyone on is to continue this matter now on chief do you have any testimony that can provide um any further uh depth of knowledge that are committee you've uh provided uh eloquent testimony i think it's in the interest of all bodies that it be continued but until the determination can be made on whether or not maybe forthcoming with a war application if you will it may be the best purposes of all bodies they included to leave it standing in place because a repeal is an entire appeal they would not enjoy any benefit that's already in motion okay and given that and given it in the spirit of public service and thinking that and thinking aloud we amongst ourselves assessor of part of finance but perhaps this may be premature and maybe we should have a further discussion with swap and explain those details so then no harm will file today I think it stays in place as it is but I think if they're going to move that direction it should be aware of what that really means and I would agree with your suggestion that once again if we would consider continuous matter for further discussion I think we will be serving everybody's best efforts.

I think that's fair to say any other any questions maybe member to announcement so by continuous who's going to be is going to be on the TSA or is it continue on the TSA which is already activated.

Okay and only motion with different name on the swap TSA's transfer on purchase so swap now has uh the building as well as the TSA that's associated with it okay that's thank you okay yes councilman thank you just to confirm so they are um like using that TSA like they're paying like their portion that's correct that's correct the taxes on credit the ability if you will the place um and swap is getting the benefit of that that's correct um and again it was transferred when the property was the TSA transferred with the property ownership um so more work needs to be done on that we're gonna discuss it again when we have more information before us as well as when we have an opportunity to speak with the new owner okay um may I have motion we can take this one motion aid by councilman second by councilman sanchez all in favor and aye any opposed ayes have it mission carries passes okay um three please in ordinance establishing a tax stabilization agreement for 70-70 while that all that okay I've asked uh first of all the developer um could not be with us this evening or could this any um due to holiday travel on I as you know we have a number of TSAs that are going before uh for public hearing I wanted to get this one in so that we could tag this along with the other public hearing so that we're not you know advertising uh multiple times so with that I asked the chief if he could come before us today to just summarize um there is a revised fiscal note on this transaction I'd like to get testimony from the chief on this project um as well as the uh the revision to the uh fiscal note thank you member committee about this uh the application for this we uh stabilization at the address of 70 railroad drivers the applicant is a generation yield llc uh it represents a property that um was acquired in 2023 at a price of six point five million and prior to any additional investment the investment under consideration produced tax stabilization will total two million five hundred and seventy thousand in addition to what was it for acquisition plus a property is the formal triple A location in the in the Silver Spring Industrial Park will give them the North Bend reward form is a significant spacious problem it is all fitted it was upfitted a mission for automobile use it would make it a spam property from the use of this particular problem the common application

And prior to any additional investment, the investment under consideration for this tax stabilization will total 2,570,000 in addition to what was paid for acquisition plus.

The property is the former triple A location in the Silver Spring Industrial Park.

We'll give it in the North Bend reward form.

It is a significant spacious problem.

It is outfitted.

It was upfitted emission for automobile use.

The current applicant generation guilt meeting the problem total body, 43-year-old business in the city's north end.

And they intend to use this facility to expand their workforce from today 40 employees to additional 10 to 50 employees, all of whom will be given training in state-of-the-art automobile repair at the finest repair companies, and they're looking to power with trade schools and automobile dealership schools that will train folks for high-paying, highly skilled positions over the next several decades.

And uh the uh the owners' intent is to do that.

Um bodies current location in the same area at 350 Silversman Street is currently uh space, if you will, and they look to expand it will remove that operation to work level drive.

Um they are the leader in auto body repair with all national major manufacturing uh automobile bakers.

And so this process by the chair, but it's a five-year TSA.

The savings to the applicant will be a total of 152,202 over the uh five-year periods.

Taxes that will be paid.

Uh the base year currently is at 99,320.

We will graduate from 99,320 to 172 following 177 over the remaining four years.

Uh the taxes that will be the savings to the advanced is 152,000.

This will also carry a pocket recreation fee, boxing uh in section 3.11 based on the savings for the applicant of 152,000 at 7%.

It would generate a parks and rec fee of 10,654 in total over the five-year period.

Similarly, there will be a monitoring fee under section 314 of the TSA at 0.01% of the total project cost for $2,570 annually over the five years for a total of 12,850.

This, Madam Chairman's of the trading council of August, is similar to what was presented to you two weeks ago on the prior three TSA that are now ending towards the public hearing.

All of them carry the park and rent fee as well as the uh farming fee.

Uh and this in this case, uh, again, it's a uh investment of 3.57 million that is being subjected to the TSA in addition to the already purchase price of 6.5 million.

So very good.

Thank you.

Committee members, any questions on this?

Again, all we're only here today to uh schedule a public hearing for this.

So we if you have any questions for the chief members you go to council and no, it'll be sorry.

I'm happy here.

I like the way you put it out.

It's very interesting.

If they're going to be teaching the new generation to work in the UR generation, because today they is like, for example, her electric one is we don't have no certified mechanics for that sample vehicle yet.

And no schools are update yet.

And I think the idea that they have these uh realtors is a great idea to teach and sortify because that's what we're looking for as certification.

But you can have the spin, but we don't have sort of one number.

So I like it.

I agree, and then uh knowing the nature of this business and knowing that it's um it is a highly skilled field, and you need training.

The training actually has to come from the manufacturer in this instance.

This facility will allow the manufacturer to send their representatives to the site locally, sparing travel costs and travel expense to the individuals or their employer, but yet getting the training that they need to have what I consider life skills, and they will in fact have careers that will pay well.

Um it's a very exciting project.

The regulator is um I did meet with uh the councilman from the neighborhood, and he's asked the developer to come to his community meeting.

He was excited about the opportunity of presenting to his neighbors on the full aspect of what they will bring to his neighborhood in his community.

And the facility manager, members of the community telling the bodies, the facility already exists within an industrial park.

Well, no, uh triple A, they're all to see if they have number all the businesses that are industrial commercial facilities, zero impact on residential hearing, but clearly formal biological point of the playbook.

Okay.

Any other questions?

Motion to schedule, recommend scheduling a public hearing made by council and walking by Councilman Sanchez.

All in favor I those eyes have it.

Um we will set the public hearing with the other on matters and we're looking at.

I know you guys have to figure that out on, but I'm thinking it's the end of January that last week that Tuesday.

It was either the last uh second to last or not last but I think we opted for the 27th, but we need to check because we've got a lot of people that are coming to that.

So could I ask the clerks to just circle the wagons and ask the uh attorneys or the developers, whoever you can connect with if that date works for everyone first and foremost, is that date work?

We've talked about that.

Yeah, you know what we're I think yeah, I think we discussed that last time in that okay.

Does that work for you?

It does matter, Sherry.

I'm the exact communication of the day before, so it does work very well.

Oh, nice.

I appreciate that.

Okay, nice and fresh.

So listen to Shaberini, will that date work for you?

Absolutely.

What a party.

Councilman Barnes, will you be able to join us?

I hope so.

Okay.

Oh, sure.

We need you.

Okay.

Um so I think we're looking at that date with further conference of the clerks.

Being there no further business, may I have a motion to adjourn and advise councilwoman and drawing second by councilman Sanchez or in favor?

Aye.

Opposed, eyes have it.

We are given that.

Thank you very much.

I can eat you have a person.