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Director Corrigan provided an overview of the process, which includes the petition of residents <br /> to establish the SID and establishment of the articles of incorporation for the organization. They <br /> were received in early March 2022, and must be acted upon in 60 days by the legislative <br /> authority. If approved, a non-profit is formed for the SID and a board of 5 trustees is installed, <br /> with 1 member being appointed by Council, and another being appointed by the mayor. <br /> Director Corrigan noted that the majority of the properties affected are between Webb and <br /> Summit. The program is voluntary and interested participants can choose to back out of the SID <br /> after they receive their project estimates. <br /> Kevin Butler of McDonald Hopkins provided an overview of the SID process as well, noting that <br /> there are 3 main touches with the government in its formation/existence. The 3 include: 1)the <br /> resolution being considered, which allows for the formation of the non-profit 2) Council sending <br /> a member to the board, who does not have to be an elected official 3) legislation that approves <br /> the final improvement petition, which will occur annually as members of the SID decide to move <br /> forward with their respective projects. He noted that the map could expand to cover the entire <br /> shoreline, however the initial participants had reservations about including everyone initially, <br /> thinking the program might be difficult to get off the ground if advertised to everyone. He added <br /> the structure is intended to be inclusive, and anyone with a shoreline erosion problem will be <br /> able to join. <br /> Mr. Butler likened the establishment of a SID similar to the formation of a homeowner's <br /> association where participation is completely voluntary. The assessments can be passed to other <br /> owners and do not need to be paid off upon sale of the property. SIDS can provide competitive <br /> market rates when engaging with financial institutions on loan terms for the projects. <br /> Chairman Baker posed a hypothetical inquiring whether the creation of multiple SIDS would be <br /> beneficial for oncoming waves of participants. Mr. Butler stated that the method of assessment is <br /> going to be based on the cost of one's own project, and that the simplicity of the process does not <br /> warrant the creation of multiple SIDS. It was clarified that the only soft cost sharing would <br /> involve legal fees. The non-profit acts as a pass through to the contractors. <br /> Councilmember Kepple asked whether there is any mechanism to decline the entry of a shoreline <br /> property owner seeking to be a part of the SID. Mr. Butler indicated that the mechanism is <br /> controlled by the board, and would be used in the rare case that property improvements would <br /> not involve erosion control and jeopardize the tax-exempt status of the non-profit. Improvements <br /> have to be for the public good, which entails erosion control. Clarifications were made about an <br /> address that did not appear to touch the shoreline. Mr. Butler added that the SID law was <br /> recently expanded to benefit in-land properties on waterways. <br /> Councilmember Rader asked what type of oversight will be provided by the non-profit board. <br /> Mr. Butler stated the board would ultimately approve the final improvement plan, which is the <br /> financing aspect of the SID. Mr. Butler's firm will go out as a public-finance law firm and <br /> attempt to find the bank that will give residents the best rate for the improvements. The board <br /> ultimately approves that finance package and the individual projects proposed. <br /> 2 <br />