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HomeMy WebLinkAbout08-15-22 - Study Session Agenda PacketSTUDY SESSION AGENDA CITY COUNCIL CITY OF WHEAT RIDGE, COLORADO 7500 W. 29th Ave. Wheat Ridge CO August 15, 2022 This meeting will be conducted as a virtual meeting, and in person, at 7500 West 29th Avenue, Municipal Building, if allowed to meet on that date per COVID-19 restrictions. Some City Council members or City staff members will be physically present at the Municipal building for this meeting. The public may participate in these ways: 1. Attend the meeting in person at City Hall. Use the appropriate roster to sign up to speak upon arrival 2. Provide comment in advance at www.wheatridgespeaks.org (comment by noon on August 15, 2022) 3. Virtually attend and participate in the meeting through a device or phone: • Click here to join and provide public comment • Or call +1-669-900-6833 with Access Code: 857 2698 5871 • Passcode: 965243 4. View the meeting live or later at www.wheatridgespeaks.org, Channel 8, or YouTube Live at https://www.ci.wheatridge.co.us/view Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. Contact the Public Information Officer at 303-235-2877 or wrpio@ci.wheatridge.co.us with as much notice as possible if you are interested in participating in a meeting and need inclusion assistance. 3:30 – 5:30 p.m. City Council Workshop on Affordable Housing – City Hall, 2nd Floor Conference Room – this meeting will not be recorded or televised 5:30 – 6:15 p.m. City Council working dinner – City Hall, Council Chambers – this meeting will not be recorded or televised 6:30 p.m. – Study Session – City Hall, Council Chambers – recorded and televised as normal Study Session Agenda Public Comment on Agenda Items 1. Affordable Housing Discussion 2. 2023 Budget Requests – Carnation Festival, Wheat Ridge Business District and Localworks 3. Staff Report(s) 4. Elected Officials’ Report(s) MEMORANDUM To: Wheat Ridge Mayor and Council Through: City Staff Project Team From: Eric Ameigh and Charles Buki, czb RE: City Council Affordable Housing Discussion on August 15, 2022 Date: August 5, 2022 Introduction and Background Since being engaged by the City of Wheat Ridge to complete an Affordable Housing Strategy and Action Plan, and meeting initially with City Council on May 2, 2022, czb has begun a scope of work that includes research and data analysis as well as evaluation of affordable housing needs, various opportunity site types, and affordable housing tools. This work continues but we now know enough to begin exploring potential strategic options from which the City can choose. Guidance from City Council on August 15 will help us narrow the focus and move ahead toward a draft strategy and action plan for future consideration in the coming months. It is our understanding that the study session on August 15 will have three main sub-topics for discussion: 1.Data illustrating market conditions and affordability implications2.Potential target markets for housing assistance3.Concepts for housing interventions The information contained in this memo is not exhaustive. Rather, it is a curated selection of our work to date, chosen specifically to support the upcoming Council study session. The memo provides important background related to these sub-topics within the broader subject of affordable housing policy. The presentation of information and analysis is structured in alignment with the three items above. Some of this information has been previously presented to City Council, Planning Commission, and the Housing Authority board, as well as at the July 6 open house event. Some, however, is new. Attachment 1: Memo from czb to Wheat Ridge – August 5, 2022 2 Market Conditions and Affordability Owner-Occupied Home Values The median value of owner-occupied housing units in Wheat Ridge has grown in recent years. According to data from the U.S. Census Bureau’s American Community Survey (ACS) Five Year Estimates, values grew slowly or not at all between 2010 and 2014 before picking up in 2015 and achieving double-digit annual growth rates above 10% between 2016 and 2020. This pattern is nearly indistinguishable from the Region’s (see Fig. 1). Source: ACS Five Year Estimates Owner Incomes and Affordability Between 2010 and 2020, the median owner income grew faster in Wheat Ridge than it did in the Denver Metro Region (44% vs 33%). Despite this rate of increase, in 2020 the median owner income in Wheat Ridge was still lower than in the Denver Metro Region (see Fig. 2). $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 Fig. 1 -Median Owner-Occupied Value, 2010-2020 Wheat Ridge Denver Metro $15,000 $25,000 $35,000 $45,000 $55,000 $65,000 $75,000 $85,000 $95,000 $105,000 $115,000 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 Fig. 2 -Median Owner Income, 2010-2020 Wheat Ridge Denver Metro Source: ACS Five Year Estimates Attachment 1: Memo from czb to Wheat Ridge – August 5, 2022 3 The median owner income was sufficient to buy the median-valued owner-occupied unit from 2010 to 2015 (see Fig. 3). In subsequent years, however, as values rose, the income needed to buy the median-valued owner-occupied unit outpaced the median owner income. As of 2020, the median-valued unit required an income of about $120,000. If median sale prices are now consistently near $600,000, then the annual income required will increase to over $150,000. Source: czb analysis of data from ACS Five Year Estimates ACS data on the value of owner-occupied units is self-reported and is subject to error for that reason, but it has the added benefit of accounting for all owner-occupied units even if they do not change hands. Data from actual sales, by contrast, offers information only about houses that are sold, but it paints a more relevant picture of market conditions for would-be homebuyers. Sales data is also more up-to-date than the ACS data. Recent Sales from MLS Data from actual home sales, reported here as median sales prices for selected west metro communities, reflect a general upward trend. The median sale price for a house in Wheat Ridge is now approaching $600,000. Table 1 - Median Single-Unit Detached Sale Price by Year, Selected Communities, 2017-2021 Year Arvada Golden Lakewood Wheat Ridge 2017 $458,000 $532,500 $411,000 $412,000 2018 $463,000 $620,000 $440,000 $452,000 2019 $484,500 $640,000 $450,000 $475,000 2020 $526,900 $746,000 $490,000 $505,000 2021 $600,000 $800,000 $580,000 $580,000 $15,000 $35,000 $55,000 $75,000 $95,000 $115,000 $135,000 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 Fig. 3 -Ownership Affordability, 2010-2020 Median Owner Income Income Needed to Buy at Median Source: MLS Attachment 1: Memo from czb to Wheat Ridge – August 5, 2022 4 Sale Prices By Housing Type Median sale prices for townhouses and condos are significantly lower in Wheat Ridge than for single-unit detached houses (see Fig. 4). This was especially true prior to 2020 when the median sale price for a townhouse jumped 56% year over year, likely due to numerous new townhouse units that were built and sold beginning in 2019. The median price for condos has tracked the single-unit detached price, but remains roughly $400,000 below the single-unit detached median and $200,000 below the townhouse median as of 2021. Single-unit detached houses represented 77% of all sales 2017-2021. Condos represented 11% and townhouses 12%. Renter-Occupied Housing and Rents During the previous decade, Wheat Ridge’s median gross rent was consistently lower than that of the Denver Metro Region. One possible explanation is the age of the city’s rental stock relative to the Region’s. In Wheat Ridge, according to 2020 ACS data, 75% of occupied rental units were built before 1980. Across the Denver Region, that figure is 48%. $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 20 1 7 20 1 8 20 1 9 20 2 0 20 2 1 Fig. 4 -Median Sale Price by Housing Type, 2017-2021 Condo Townhouse Single-Family Detached $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 Fig. 5 -Median Gross Rent, 2010-2020 Wheat Ridge Denver Metro Source: MLS Source: ACS Five Year Estimates Attachment 1: Memo from czb to Wheat Ridge – August 5, 2022 5 More recent data, in the form of median rent estimates from Apartment List (see Fig. 6), suggest that renters in 2022 may be under increased strain if seeking a new lease. Estimated median rents for a one-bedroom approached $1,200 per month in the spring of 2022, while the price for a two-bedroom exceeded $1,400. This data, along with the historical ACS data, suggest that rents are on the rise along with the rest of the Region, but Wheat Ridge still offers a measure of relative rental affordability. Source: Apartment List Renter Incomes and Affordability The median renter income in Wheat Ridge increased by 39% between 2010 and 2020, which is slower than the Region’s 65% increase (and slower than the city’s 44% median income increase for owners). Source: ACS Five Year Estimates $800 $1,000 $1,200 $1,400 $1,600 $1,800 Fig. 6 -Median Two Bedroom Rent, Month by Month May 2019-April 2022 Wheat Ridge Two Bedroom Denver Metro Two Bedroom $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 $60,000 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 Fig. 7 -Median Renter Income, 2010-2020 Wheat Ridge Denver Metro Attachment 1: Memo from czb to Wheat Ridge – August 5, 2022 6 As of 2020, a renter household needed just over $45,000 in annual income to afford the median-priced rental unit in Wheat Ridge (see Fig. 8). If more recent data is to be believed, the required income is now surpassing $50,000. But renter households in search of a bargain are still better off in Wheat Ridge than in most other locations within the metro Region. Source: czb analysis of data from ACS Five Year Estimates Rental Gaps and Cost Burdens Gap analysis measures the difference between the number of households in a given income range and the number of units affordable to that income range. A deficit results if there are fewer units than households, and a surplus results if the number of units exceeds the number of households. In Wheat Ridge’s case, as of 2020, there were more rental units priced for households with incomes between $35,000 and $74,999 than there were renter households with those incomes. There were deficits for households with incomes below $35,000. This is a common pattern in which those renters impacted by the shortage at the bottom of the income distribution must “rent up” into the surplus supply which is priced above what they can afford. It is the reason that so many low-income renters are cost-burdened. There are over 1,200 renter households in Wheat Ridge with incomes less than $35,000 for whom there is no corresponding affordable unit. Table 2 – Renter Household Unit Gaps and Cost Burdens, by Income, 2020 Income Range Households Units Affordable to Income Range Paying No Cash Rent Shortage/ Surplus Paying 30 - 49.99% Paying 50% Less than $20,000 1812 691 212 -909 308 1001 $20,000 to $34,999 1265 887 59 -319 554 606 $35,000 to $49,999 795 2130 14 1349 405 20 $50,000 to $74,999 1111 1946 8 843 318 42 $75,000 or more 1741 754 23 -964 150 0 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 Fig. 8 -Renter Affordability, 2010-2020 Median Renter Income Income Needed to Rent at Median Source: 2016-2020 ACS Five Year Estimates Attachment 1: Memo from czb to Wheat Ridge – August 5, 2022 7 Cost burden (or rent burden in the case of renters) is defined as a household spending 30% or more of its gross income on housing costs. As of 2020, the clear affordability challenge resided with renter households with incomes under $35,000. Smaller groups of renters with incomes between $35,000 and $74,999 were also impacted. Potential Target Markets for Assistance Target Markets By Income Category It is our assessment that Wheat Ridge’s housing market challenges can be divided primarily at $50,000 in annual household income. The nature of the issues above and below this line are distinct from a policy perspective. Furthermore, above $150,000, households have sufficient income to participate in the housing market without facing affordability challenges. This results in two broad categories: • Households with incomes below $50,000 who are primarily renters. • Households with incomes of $50,000 to $150,000 who are primarily renters today if they live in Wheat Ridge, with many in the higher end of the range potentially on the path to homeownership. Annual Household Income: $0 to $50,000 The most vulnerable households are those with incomes below $50,000. Amongst these households, 35% are owners, half of whom have no mortgage, and 65% are renters. Because recent housing cost data suggest rents are on the rise, it is our assessment that any renter household with an income of less than $50,000 faces serious risk in the housing market. This describes an estimated 3,564 Wheat Ridge renter households. Over half of all Wheat Ridge renters are cost-burdened but this figure rises to 75% for renter households with incomes below $50,000. Extreme cost burdens (paying 50% or more of income toward housing) are common in renter households with incomes below $35,000. The gap analysis in Table 2 shows that there is a shortage of just over 1,200 affordable units for renter households with incomes below $35,000 and a surplus of just over 1,300 affordable units for renter households with incomes from $35,000 to $49,999. Absent significant intervention, the former category of renters (roughly 3,000 households or 20% of all Wheat Ridge households) will continue to struggle given their very low incomes and the latter category (roughly 800 households) will likely see their challenges increase over time as rents increase. Annual Household Income: $50,000 to $150,000 Working households, altogether annually earning between $50,000 and $150,000, provide critical services to the Wheat Ridge community. They include educators, health care providers, first responders, and others whose work is unquestionably critical to daily life in the community yet whose earnings are less and less sufficient to secure quality housing at market prices in Wheat Ridge. The City does not maintain data about the total household income of employees, but for point of reference, 83% of the City’s 233 standard employees individually have salaries within this range in 2022. The diversity of housing needs in this group is wide. In the bottom half of the income range, whether the household has a single earner, two earners, or somewhere in between, affordable rental options will exist but market changes could be disruptive in the near-term in two ways: Attachment 1: Memo from czb to Wheat Ridge – August 5, 2022 8 1. Existing tenants may see rents rise faster than their incomes. 2. Even if existing tenants are on a trajectory that will take them to a larger and more expensive rental, or to homeownership, those who come in to replace the upwardly mobile may also face rents that are resetting faster than their incomes are rising. These households also have some amount of choice, and may simply choose at some point to seek employment and residence outside Wheat Ridge or even the region altogether, depriving the community of their service. As of 2020, there were roughly 1,800 Wheat Ridge renter households who could fit this description in some way: • 1,100 households with incomes from $50,000 to $74,999; and • 700 households with incomes from $75,000 to $99,999. In the top half of the range, households have even greater choice, and this group would have been potential homeowners in Wheat Ridge as recently as 2015. If homeownership is off the table for households with incomes between $100,000 and $150,000, and such households have the ability to locate employment and good quality of life in many places less expensive than the Denver metro region, they too are a flight risk that Wheat Ridge can ill afford. As of 2020, there were roughly 800 renter households in Wheat Ridge with incomes from $100,000 to $149,999 who could fit this description in some way. Concepts for Housing Interventions Understanding existing market conditions that are likely not to fundamentally change in the coming years, and its potential housing needs a few opportunities emerge. The descriptions here are general, with much detail that would require further exploration. We anticipate more in-depth discussion of these options on August 15, and if Council expresses interest, additional analysis that would become part of future public deliverables and discussion. Facilitate Low-Income Housing by Partnering with Local Agencies For those households with incomes below $50,000, significant assistance is needed and can only be provided by the existing system of federal supports that is in place to do the job, including housing authorities, low-income housing tax credits, and housing vouchers. This system’s local provider is traditionally a housing authority and sometimes another nonprofit agency or agencies. Although the City can only respond when these agencies propose a project, it is critical that the City have a supportive posture and a policy framework for providing assistance. Forms of assistance the City may consider for projects proposed by partner agencies include but are not limited to: • Waiver of development fees. • Reduction in parking minimums if transit opportunities are deemed sufficient. • Expedited review processes if specified design criteria are met. • Financial support. Preservation of Existing Affordability by Partnering with Existing Owners Wheat Ridge has a large number of aging but affordable rental units. They exist in a variety of housing types, from single-unit attached houses all the way up to multi-unit structures of more than ten units. Investing in these properties in exchange for stable affordable rents is a cost-effective way to maintain affordability, especially for households with incomes between $50,000 and $75,000. Ownership generally will not be an option in this income range. Attachment 1: Memo from czb to Wheat Ridge – August 5, 2022 9 New Construction with Inclusionary Requirements For households with incomes in the $75,000-$150,000 range, new market-rate rental is generally an affordable option, but ownership is generally not. Additional construction of new market-rate rental units will benefit this group. For those households between roughly $75,000 and $90,000, new rental may not actually be affordable, but an inclusionary requirement on new rental projects could provide units affordable to these incomes. Inclusionary housing is a tool in use in Denver, Boulder, Longmont and other communities, made legally enforceable via local law, that requires some percentage of new housing units in a project to be affordable, with the percentages and the affordability requirements to be determined by the jurisdiction. Ownership opportunities for households between $100,000 and $150,000 could also become possible through inclusionary requirements. Purchase and Deed-Restriction for Affordable Ownership Although expensive to begin, the City might consider the acquisition of ownership units or a program to assist income-qualified buyers linked to a deed restriction and/or shared equity arrangement. Such a program would preserve affordable ownership opportunities in perpetuity. There may be a role for a land trust within this approach. Memorandum TO: Mayor and City Council THROUGH: Patrick Goff, City Manager FROM: Allison Scheck, Administrative Services Director DATE: August 8, 2022 (for Study Session on August 15, 2022) SUBJECT: 2023 Budget Requests – Carnation Festival, Wheat Ridge Business District and Localworks ISSUE: Representatives from Wheat Ridge Business District, Localworks and Carnation Festival have submitted 2023 budget requests for Council’s consideration. Staff requests feedback on the attached proposals with consensus to proceed so that the appropriate levels of funding are included in the 2023 proposed budget. While representatives from all three partners are available for questions, only Localworks will make a presentation. PRIOR ACTION: Representatives from each organization last presented to City Council on August 16, 2021 for the 2022 budget. Council’s consensus moved each organization’s contribution into the 2022 proposed budget. FINANCIAL IMPACT: The 2023 budget request per organization is as follows: Carnation Festival - $125,000 Wheat Ridge Business District - $90,000 Localworks - $253,500 MEMO PREPARED/REVIEWED BY: Allison Scheck, Administrative Services Director Patrick Goff, City Manager ATTACHMENTS: 1. Carnation Festival Budget Request 2. Wheat Ridge Business District Budget Request 3. Localworks Budget Request Item No. 2 8/9/2022 To: Wheat Ridge City Council From: The Carnation Festival Board Re: 2023 Carnation Festival Budget Appropriation The Carnation Festival has been a Wheat Ridge tradition for over 50 years and is a tremendously popular event that the community looks forward to each year. The festival provides a great opportunity to bring people together to have fun and celebrate what makes Wheat Ridge special. The festival features a parade, carnival, circus, games, three days of live entertainment, two nights of fireworks, a wide variety of food vendors and other fun attractions. The festival showcases local businesses and service organizations that provide community impact far beyond this 3-day event. This year, we had over 50 local food and merchant vendors and 3 community service organizations participating in the festival. We faced unexpected challenges with producing the 2022 festival. Our longstanding carnival vendor sold their business and despite the popularity and success of the carnival in prior years, the new owners decided to re-route the carnival to other larger events, citing high fuel costs and labor shortages. Additionally, our fireworks vendor canceled last minute citing their inability to secure fireworks due to supply chain issues. Despite these challenges we were able to pivot and find alternative vendors to provide each of these attractions at the 2022 festival. We are asking for a 2023 budget appropriation of $125,000 which is the same amount City Council appropriated in 2022. While the dust is still settling on the actuals for the 2022 festival, we have provided for your consideration our 2021 actual revenue and expenses and our 2022 budget. This document illustrates the various services and costs it takes to produce the festival each year. We appreciate the city’s continued sponsorship. Thank you for your consideration of our request. ATTACHMENT 1 The Carnation Festival Inc. 2022 Proposed Budget Revenues  2021 Actual  2022 Budget  Carryover Fund Balance  $‐     $15,000  City Sponsorship  $75,000  $125,000  Carnival  $20,709  $15,000  Parking  $1,311  $1,200  Spaghetti Dinner  $1,500  $1,500  Car Show  $6,535  $5,000  Parade Fees  $600  $600  Merchant Vendor Fees  $8,810  $8,800  Food Vendor Fees  $6,119  $6,200  Rotary Beer  $23,700  $23,000  Optimist Beer  $10,000  $10,000  Kiwanis Beer  $4,521  $4,500  Food Court Beer  $14,857  $15,000  ATM fees  $327  $400  Sponsorships  $11,300  $17,000  Security Reimbursement  $3,476  $4,000  Total  $188,765  $252,200  Expenses  2021 Actual  2022 Proposed  Festival Administration Event Production  $                        7,500  $                     20,600  General Admin. $                        3,258  $                        7,000  Printing (Signage/Marketing) $                        1,800  $                     11,000  Insurance  $                        4,368  $                        4,500  Sponsorship Commission  $                        1,000  $                        3,000  Website  $                           950  $                        1,000  Bank and Merchant Fees  $                           819  $                           900   $                     19,694  $                     48,000  Bands Bands  $                     18,750  $                     23,000  Band Administration  $                        4,640  $                        5,000  Band Stage  $                     12,700  $                     13,000   $                     36,090  $                     41,000  Programs Circus  $                              ‐     $                     20,000  Carnival  $                              ‐     $                              ‐    Fireworks  $                     13,000  $                     15,000  Car Show (Offset by Fees) $                        6,415  $                        5,000  Parade  $                        3,497  $                     10,000  Community Area Programming  $                     12,000  Volunteer Program  $                        5,000  Carnation Mile  $                        3,700  Pie Contest  $                           500  Carnations/Flowers  $                        1,200   $                     22,912  $                     72,400  Facilities General  $                     13,713  $                     14,500  Tents  $                     12,314  $                     13,000  Power  $                     10,100  $                     11,000  Portable Potties  $                        7,578  $                        8,000  Shuttle  $                        8,720  $                        6,000  Fencing  $                        5,606  $                        6,000  Waste Services  $                        4,006  $                        4,000  Security  $                        3,476  $                        4,000  Golf Carts  $                        2,165  $                        3,500  Radios  $                           780  $                        1,000   $                     68,458  $                     71,000  Beverages Beer  $                     13,730  $                     15,000  Soft Drinks  $                        1,353  $                        1,300  Wine  $                        1,446  $                        1,500  Ice  $                        2,701  $                        2,000   $                     19,229  $                     19,800  Total  $                   166,384  $                   252,200  Gain/(Loss)$22,381 $0  August 4, 2022 Patrick Goff, City Manager City of Wheat Ridge 7500 W. 29th Ave. Wheat Ridge, CO 80033 Re: 2023 Funding Request for Wheat Ridge Business District Dear Patrick, On behalf of the Board of Directors of the Wheat Ridge Business District, I am writing you to request funding of $90,000.00 total in 2023: •$45,000.00 for the matching grants programs •$45,000.00 for the Façade Plus program The Wheat Ridge Business District (WRBD) is a 501c3 nonprofit organization that offers matching grant funds to commercial businesses in the City of Wheat Ridge in order to improve the appearance of individual buildings, as well as the overall look of the city. Most eligible improvements must be to areas visible from the public right-of-way or for public accessibility. The goal of the organization is to leverage private improvements while making revitalization efforts affordable, creative, and community-based. The WRBD is governed by a volunteer board comprised of Wheat Ridge business owners, property owners and civic leaders. In 2021, the Wheat Ridge Business District reimbursed grants to 14 properties, totaling over $95,900 for sign, façade, architectural, landscape, paint, murals, accessibility, and visual impact projects. The disbursed matching grants have leveraged over $345,000 in private investment dollars to commercial properties in Wheat Ridge in 2021. To date in 2022, the Wheat Ridge Business District has reimbursed grants to 6 properties totaling over $27,900 and has active pending grant awards to 5 properties totaling over $67,000. A complete list of recent projects and the details about each of our grants programs can all be found on our website: WRBusinessDistrict.org. In 2023, the Wheat Ridge Business District will continue to promote our matching grant incentives and support revitalization and improvements to commercial properties throughout Wheat Ridge. We thank you for your past and continued support of the Wheat Ridge Business District. Sincerely, Joseph DeMott Board Chair, Wheat Ridge Business District ATTACHMENT 2 To: Mayor and City Council From: Paige Piper, Executive Director, Localworks Date: Monday, August 15th, 2022 Re: Localworks 2022 Accomplishments & 2023 Budget Request Executive Summary: Localworks and the City of Wheat Ridge share a long-standing partnership in the revitalization, beautification, and engagement of the Wheat Ridge community. Localworks was formed in 2005 as a result of the first Neighborhood Revitalization Strategy. Formed as Wheat Ridge 2020 and later rebranded to Localworks, the organization was formed to be a partner with the City through the development of strategies to position the City of Wheat Ridge as a vibrant and sustainable community. Through this partnership, Localworks has implemented business loan programs, home loan programs, community engagement events, educational events, and community clean up and beautification projects. In this year’s budget request, the format of the budget proposal will be a bit different, as the Localworks Board of Directors in partnership with staff is looking forward to strategically redefining what Localworks does to remain an impactful partner to the City of Wheat Ridge. Rather than having the report focus on the accomplishments that Localworks facilitated in 2022, this budget request will be focusing on the future of Localworks, how we are currently strategically redefining what we do to better impact the Wheat Ridge community, upcoming programs we will revisit or newly launch, and a preview of our strategic roadmap over the next five years. The strategic planning priorities that Localworks is committed to focusing on that continue to drive daily operations and our strategic roadmap include: ●Economic Development ○Events and programs ○Business corridor improvements (branding, including Ridge @ 38) ●Community connection & communication ATTACHMENT 3 ○Events and programs ○Developing and implementing methods to prevent community deterioration ○Developing access and activities to greater community member involvement, including getting community members involved in task forces, boards and commissions, etc. ●Promoting an improved image for Wheat Ridge ○Information hub ○Business Loan Program ○Home Improvement Loan Program Below is a short, comprehensive list of 2022 accomplishments: ●By the end of summer, will have managed 4 TLC Dumpster Days resulting in an average of 18 dumpsters per event, having special dumpsters for each event such as tires etc. These events removed approximately 1200 yards of waste and debris. ●Localworks launched the prototype for a Community Calendar, allowing community groups, residents, businesses etc. to submit events for posting. A full, more interactive calendar will launch in the Fall of 2022 with the newly redesigned Localworks website. This accomplishment aligns with our strategic planning priorities of providing a more sustainable Wheat Ridge for our residents, getting them involved and connected. ●There have been 9 total dumpster grants this summer and counting. Thus far, 180 cubic yards in neighborhoods have been collected, roughly equaling 100 large (33 gallon) trash bags. ●Block parties are also ramping up in this summer and Fall season. Three total have been hosted thus far, and Localworks continues to reimagine what a Block Party grant can mean, including hosting them for businesses. ●Localworks has re-launched and rebranded of our e-newsletter, now called the “Local Word”. ●The Makerspace: Tools purchases to continue to move this mission forward ○Most popular tool: Glowforge laser printer ■Able to cut and engrave leather, plastic, wood, felt and more ■7 people have learned how to use the Glowforge so far ●Projects include: ○Custom leather cattle ranch themed wedding invitations ○Tabletop dice towers (which were for sale at ridgefest!) ○Felt wall decorations ○The cardboard castle children’s activity seen at ridgefest ○Coasters with company logos ○Other tools purchased: ■Crafting tools: Vinyl cutter, heat press, and sublimation printer ●Allows for custom branded t-shirts, hats, mugs, etc. ●Vinyl cutter can produce window signage, wall art, etc. ●Vinyl cutter can also cut paper, and emboss for scrapbooking, custom stationary, etc. ■3D Printer: ●Capable of printing Nylon parts (think mountain bike pedals) ●3D printers can be used to: ○Prototype an idea or invention ○Print replacement parts for vehicles, appliances, etc (knobs, clips, brackets) ●The Makerspace: Volunteers activated and enabled ○400+ cumulative volunteer hours ○109 emails on our volunteer list ○47 people have joined the makerspace Slack channel 2023 Budget Request Wheat Ridge Creates Wheat Ridge Creates, and the programming that Localworks champions inside of this strategic planning priority is extremely exciting, and an initiative that Localworks is extremely excited to make an investment in. The largest program that Localwroks is in the process of creating, launching, and growing, is a Makerspace. A makerspace, and our makerspace, will be an entrepreneurial ecosystem, that leans into the creative roots that this City knows and loves. A makerspace is a place for people, tools, and ideas, and it incubates entrepreneurship, collaboration, and creativity. This concept can be one that is hard to see and feel without it being live. But, let me paint a picture. People come to a makerspace to learn new skills, build new things, try new ideas, and when the two come together, business incubation occurs. It is a place where originally something felt impossible, but makerspaces make the impossible, possible. We will hold classes to incubate this knowledge sharing. How to Weld. 3D printing 101. How to pitch your product. Classes will focus on how to make, build, and sell, a startup feel. A makerspace is an adult playground that both feeds businesses but also personal creativity and passion for the arts. This space, in the many facets it will be used, continues to make Wheat Ridge a more vibrant and sustainable place. Our makerspace has already started with community meeting nights of makers taking place every Tuesday. From this, we have received in-kind donations of new equipment and tools totaling over $7000 to only continue to make our Makerspace more functional and attractive to Wheat Ridge residents. We are looking to move into a new space, and launch our memberships and immediate class schedule in early 2023. Due to the viability we have already seen for this program, and the need in the community, Localworks is proud to invest $200,000 from our reserve account in our 2023 budget for programming, building improvements for the new space and equipment. Ridgefest will also be taking on a new role in our WR Creates initiatives. This year, on June 18th, 2022 thousands of people celebrated the return of Ridgefest, a premiere community event right in the heart of Wheat Ridge. With the return of Ridgefest came a Maker Faire, a multidisciplinary celebration of artists, crafters, engineers and hobbyists. From homemade hot sauce to electronic steampunk tricycles, visitors got to see the amazing range of hobbies and skills that define a growing culture of makers in the area. Those visiting Ridgefest enjoyed live music, sampled drinks from local breweries (and distilleries, AND wineries), watched their kids play games, shopped for handmade goods at vendor booths, and learned new skills from demonstrators. Creativity is teeming in Wheat Ridge, and the makers at Ridgefest exemplify a passion that reinforces a growing movement that both bolsters and enriches our local community. Those who took a stroll past the maker booths had the opportunity to try their hand (and strength) at traditional letterpress printing thanks to Al Gallo, a local maker and letterpress enthusiast. Al brought his personal press and offered interactive demonstrations for free. Resident feedback on the 2022 Ridgefest Maker Faire has been extremely positive. Attendees loved to see the event back after its COVID-19 hiatus and felt that the addition of the Maker Faire helped capture and bring out the deep creative spirit of Wheat Ridge. This year’s live music lineup, curated by Swallow Hill Music, was a smashing success - and of course, the food and drink options were a hit too! Attendees happily danced on the Green into the evening, glad to be able to connect with friends and neighbors at a well-loved local event once again. All in all, after the successful return of Ridgefest, Localworks is already looking forward to 2023. Live Local, getting foot traffic and residents connected to local businesses Livin’ Local is back, and better than ever. Evaluating our mission and steering events back to our roots of providing economic development to the City of Wheat Ridge, both retaining businesses and residents in our community, Live Local events have a new focus of getting residents into businesses, to learn, participate, and thrive. For example, On Thursday, July 14th over 25 community members gathered in Stylus in Crate to learn about the origin, tradition and art of coffee. Tadd Overstreet, the Owner of Stylus and Crate impressed community members with facts such as that coffee beans are not actually beans, light roast coffee actually has more caffeine than dark roast, and even with three different coffee beans that Tadd presented that evening (Ethiopia, Columbia and Sumatra) your blending of roasts can be unlimited. Tadd has provided testimonial that he now has received several new regulars from this event. Community members left caffeinated, smiling and with their custom roast in hand, having made new connections, friends and moreover, connected and were inspired by one of our local entrepreneurs. Our 2023 budget request surrounds assistance in staff time and expenses to keep these events going in our community, with the spirit of sustaining and supporting the economic development peice of the Localworks mission. One of the bigger Live Local events on the docket that will promote increased foot traffic and retention of important businesses and entrepreneurs in our community is the first ever “Business Block Party” that we will hold at Gold’s Marketplace. Business Corridors, branding Wheat Ridge businesses to increase detection and connection in the community Localworks is proud to have been a part of stewarding the Ridge @38 brand. Since its inception, we have heard positive feedback from countless residents and businesses along 38th Ave. that this has brought increased foot traffic and recognition to their business. Localworks does not want to stop here, so as a strategic initiative to help support our mission and strategic priority of making Wheat Ridge a more vibrant and sustainable place for businesses and residents, Localworks will be facilitating and exploring other business corridor identities. Possible business corridor identities that may be explored and executed are along 44th Ave, 29th Ave and the Applewood corridor. Business outreach, redefined and reinvented communication Localworks is also looking forward to increased business outreach and streamlined communication, acting as a bridge and steward of communication for the entire Wheat Ridge community. A large initiative that will begin in Fall of 2022 and remain in progress through early Spring 2023 is a complete Localworks website redesign, facilitating a community calendar, business directory (of all Wheat Ridge businesses), better management of Ridge @ 38 brand by encompassing this on the main Localworks website, information for any prospective business and links to resources that they should visit, including the City website and other appropriate stakeholder organizations. Localworks will also be re-implementing a business welcome program, reinvent and host business roundtables, (at least two in the 2023 calendar year), develop a Wheat Ridge passport (or program similar) to encourage spending within the Wheat Ridge business corridors and market to a younger resident demographic, to encourage small business shopping, eating and experiences. This year’s Trunk or Treat event will also mirror the new excitement and initiatives in redefined programs and communications for businesses. Rather than having a food truck at this year’s event, Localworks will be creating “Trunk or Treat” cash. This cash can be used at businesses the night of the event, and for some businesses, may have special deals running all week. An example of Trunk or Treat cash will be to grab a cup of coffee at Stylus and Crate prior to the event, and with your Trunk or Treat Cash in hand, you will receive one free cup of coffee. A similar scenario may be setup at Colorado Plus, and after the event, with your Trunk or Treat cash, you will receive a free kid’s meal and one free adult beverage. Localworks will contribute a financial contribution to businesses that participate to help with any incurred expenses. Localworks is redefining and resetting– understanding our commitment As discussed in the Executive Summary, and included in more detail in the sections of this report, Localworks is really strategically working to understand how to best impact the community, including continuing new programs such as the Makerspace, but allowing ourselves to also revisit our roots and truly refocus on economic development. Localworks is also committed to changing our funding structure, and diversifying our funds to make an even larger impact in our community and be the best steward to the City of Wheat Ridge and facilitate a stronger partnership. Localworks will be diversifying our funds in the following ways to remain viable and sustainable, and grow our impact in the community. Grants: Localworks will be facilitating relationships with private funders to assist with operating costs and the investment in the Makerspace project. Localworks began this project in early 2022, and under new leadership has identified eight funders that align with the Localworks mission, vision and programs. Colorado Gives:Localworks will redefine participation in Colorado Gives Day, and have a large fundraising campaign. Localworks under new leadership has begun to facilitate individual donor relationships, and is reengaging our community supporters. Farmer Scramble: Localworks will be hosting our first ever annual fundraising event in the Fall of 2023, a golf scramble. Funds raised will assist in program funding for core Localworks programs, economic development, community connection and promoting an improved image for Wheat Ridge. Makerspace:A core program that we have discussed will also provide revenue generation for Localworks that will continue to allow our programs to flourish to continue to meet our mission of stewarding Wheat Ridge to be a more vibrant and sustainable place. The Makerspace membership structure will launch at the beginning of the 2023 calendar year, and by the end of 2024, membership revenue alone is expected to generate $59,400 of revenue each year. We are budgeting as we get our membership structure off the ground to generate a revenue of $5,000. The makerspace is not only a viable program through monthly membership, but classes that get the community engaged and allow us to facilitate learning for diverse interests. It is anticipated by the end of 2024 that classes have the potential to generate $12,000 of revenue each year, in the 2023 fiscal year budgeting $3,000 of revenue to allow us to get classes off the ground, hosting one per quarter in the 2023 fiscal year. Conclusion: Localworks, in partnership with the Board of Directors and staff, has a very new, exciting energy. This year’s budget request reflects our excitement to embrace change, redefine and revisit our roots, and continue the exciting programming of the Makerspace. Localworks is hitting a “reset” button that will bring us to new heights. Appendix A Historical budget request Appendix B As seen in Appendix B, the approved contribution from the City of Wheat Ridge to Localworks for our 2022 fiscal year budget was $390,000. As Localworks has partnered with the City in future planning of programs that are being shifted to the City’s management with Localwroks support as seen fit, this year’s budget follows a new format, eliminating several sections, and now only including core Localworks programs that are simplified for a more comprehensive understanding of funds,Wheat Ridge Creates and Business Promotion. Please note the 2022 adopted section in this document does not reflect the full City contribution for 2022. To refer to the full City contribution for the 2022 year, please refer to Appendix A. 2023 Localworks Budget 2022 Adopted 2023 Proposed budget City Grant Line Item(s) Wheat Ridge Creates Ridgefest $85,000.00 $35,000.00 Trunk or Treat $10,000.00 $0.00 Holiday Festival $15,000.00 $0.00 Makerspace $0.00 $50,000.00 Subtotal $110,000.00 $85,000.00 Business Promotion Live Local $43,000.00 $53,500.00 Business Corridors $50,000.00 $65,000.00 Community Outreach/Business Promotion $57,000.00 $50,000.00 Subtotal $150,000.00 $168,500.00 Total City Grant Contribution $260,000.00 $253,500.00 Non-City Revenue/Fundraising Goals Ridgefest $24,700.00 $1,500.00 Tour- MidMod/Urban Farm $0.00 $2,500.00 Trunk or Treat $1,000.00 $500.00 Holiday Celebration $2,200.00 Live Local sponsorships $925.00 $6,000.00 Colorado Gives $1,000.00 $12,000.00 Grants $0.00 $25,000.00 Memberships $120.00 $0.00 Makerspace- Localworks reserve transfer $15,000.00 $200,000.00 Makerspace-Classes $400.00 $3,000.00 Makerspace Membership $1,500.00 $5,000.00 Localworks annual fundraiser $0.00 $19,500.00 Total Non-City Revenue/Fundraising Goals $46,845.00 $275,000.00 Total Localworks reserve operating transfer $200,000.00 Total Revenue with Fundraising $306,845.00 $528,500.00 Operating Expenses Total Salaries and Wages $186,529.00 $221,160.00 Total Makerspace Equipment Expense $15,000.00 $225,000.00 Total Rent $9,000.00 $36,000.00 Total Travel and Meetings $5,000.00 Total Operations (office operations)$11,508.00 $13,212.05 Total Insurance $1,764.00 $1,299.00 Total Professional Services $5,417.00 $18,600.00 Total Expense- Organizational operating expenses + Makerspace $520,271.05 Total Net Revenue $8,228.95