Transportation Benefit DistrictsThe Ridgefield Interchange Project
Fall Conference of theAmerican Public Works Association
Washington State ChapterOctober 22, 2009
Justin L. Clary, P.E.City Manager
City of Ridgefield, Washington
Ridgefield Location
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2008 Ridgefield Comprehensive Plan Map
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Recent Residential Growth
Pre-2004 – Relatively Stable Population Base 2004-Present
825 New Homes Constructed Population grew from 2,195 to 4,215; ranked No. 8 in State of
Washington for Percentage of Population Growth Rate (2000-2009)
Approximately 1,900 residential lots have gained, at a minimum, preliminary plat approval
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2005 2007
Recent Employment Growth
Employment-based growth has taken longer to realize than residential growth Approximately 500 jobs created since 2004
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Economic Development on the Horizon
Ridgefield’s Comprehensive Growth Plan projects 20,000 jobs will be created over the 20-Year planning horizon
There are a number of large-scale developments under planning and two under build-out
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Economic Development on the Horizon
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Union Ridge Master Planned Business Park
Economic Development on the Horizon
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Southwest Washington Health System Medical Campus
Economic Development on the Horizon
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Port of Ridgefield’s Waterfront Master Plan
Economic Development Attributes
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Ridgefield Junction Employment Area Approximately 1,500 acres of land zoned for employment-
based development – the largest volume of developable land in the Greater Portland/Vancouver Metropolitan area
Direct access to an international trade corridor (Interstate-5) 25-minute drive to Portland International Airport Four deep-water ports within 30 miles (Vancouver, Portland,
Kalama and Longview) Two major railroad lines within 20 miles (BNSF and Union
Pacific)
Transportation Challenge
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I-5/SR 501 Interchange Built in 1964 to serve a rural community Sole access to Interstate 5 for Ridgefield Existing capacity rapidly eroding due to recent growth Development community has long identified the existing
interchange as a detriment to recruiting quality businesses
A New Interchange
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I-5/SR 501 Interchange Sized to serve 2030 traffic flows Design initiated in 2005 through WSDOT-City partnership
Pre-Benefit District Funding Deficit
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30% Design Completed in 2006 Projected an estimated total project cost of $38 million
Funding Secured through 2006 Federal SAFETEA-LU - $9 million State Transportation Partnership Account - $10 million State CTED Economic Development Grant - $2 million City Traffic Impact Fees - $2 million
Projected Funding Deficit = $15 million
Consistent message from legislators Has the City used all local options?
Transportation Benefit District Feasibility Study
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2007 Public-Private Partnership to conduct Feasibility Study Public – City of Ridgefield, Port of Ridgefield, CTED Grant Private – Individual Developer Donations
Stakeholder/Consultant Team FCS Group – Financial Analysis K&L Preston Gates Ellis LLP – Legal Analysis City, Port, developer and citizen representatives
Scope Conduct legal analysis of RCW 36.73 Evaluate Allowed Revenue Mechanisms Create Revenue Projections based on Land Use Designations Define District Boundaries Assist in TBD Implementation
Feasibility Study Analysis
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Legal Analysis Benefit District Creation Process Benefit District Board of Directors Bondable Revenue Streams
Funding Mechanisms Sales & Use Tax Vehicle Fee Fee or Charge (e.g., traffic impact fee) Vehicle Tolls Property Tax Local Improvement District Assessments
Land Use Projections Created model of buildable lands in the interchange influence area Developed revenue projections based on land use designations
- Used actual increases in assessed valuation of properties near other area interchanges that were replaced over the past decade- Created sales & use tax projections for commercially-zoned properties
Went through an iterative process with the community on revenue streams and district boundary delineation
Feasibility Study Results
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Challenges Encountered Public Approval Process: Registered Voter (TBD) vs. Property
Owner (LID) TBD Boundary Delineation – raised a question of
proportionality Bonding Constraints (TBD sunset of 10 years on sales tax
revenues does not allow for revenue bonding) Revenues increase only as development occurs Agriculture-designated lands were exempt from property
taxes Concern from property owners not intending to develop
Recommended TBD Parameters Revenue Stream – 0.2% Sales & Use Tax would create $1-2
million over the 10 year life of the TBD District Boundary – encompassed land zoned for
employment-based development (industrial, professional and commercial)
Transportation Benefit District Boundary
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TBD Creation and Approval
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District Creation In June 2008, Ridgefield City Council approved an ordinance
adopting the TBD and directed placement of the 0.2% sales & use tax on the November 2008 General Election ballot
Public Process & District Justification City conducted informational mailings and open houses Yes on Ridgefield TBD Committee formed by citizens Common Message – Everyone using the new interchange to
purchase goods that locate within the District will pay their “fair share” for using the interchange
Cost/Benefit Analysis – consumer would need to spend over $1,300 at the nearest commercial location before the 0.2% sales tax increase would be offset by the cost of fuel
November 2008 General Election Outcome TBD approved by 66%
TBD “Side Effects”
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Protection of Existing Project Funds 2008 Legislative session – existing State funds were nearly
reallocated to fully fund other transportation projects Governor’s draft 2009-2011 budget released in Fall 2008
again proposed reallocation of project funds City was able to effectively argue during the 2009
Legislative session that the Project has wide community support based on its approval of a sales tax increase despite a faltering economy
Positioned Interchange Project for ARRA Funds Project visibility created by voter approval of the TBD was
instrumental in the receipt of $10 million in ARRA funds
Ridgefield Interchange Project Funding
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Federal SAFETEA-LU (2005) American Recovery and Reinvestment Act (2009)
State Transportation Partnership Account (2005) CTED Economic Development Grant (2005) Pre-existing Funds (secured 2007, available 2011-2013)
Local Traffic Impact Fees (2005) Transportation Benefit District (2008)
Questions?
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