City Council

November 9, 2017 The City Council of the City of Idaho Falls met in Regular Council Meeting, Thursday, November 9, 2017, in the Council Chambers in the City Annex Building located at 680 Park Avenue in Idaho Falls, Idaho at 7:30 p.m. Call to Order: There were present: Mayor Rebecca L. Noah Casper Councilmember Thomas Hally Councilmember David M. Smith Councilmember Michelle Ziel-Dingman Councilmember Barbara Ehardt Councilmember Ed Marohn Councilmember John B. Radford Also present: Randy Fife, City Attorney Kathy Hampton, City Clerk All available department directors Pledge of Allegiance: Mayor Casper invited Noah Beattie, a fifth-grade student at Mountain Valley Elementary School and Boy Scout Troop #388, to lead those present in the Pledge of Allegiance. Public Comment: Mayor Casper requested any public comment not related to items on the agenda or noticed for a public hearing. No one appeared. Consent Agenda: Office of the Mayor requested reappointment of Nolan Taylor to the Traffic Safety Committee. Municipal Services requested approval of Comprehensive Annual Financial Audit Services Professional Contract; Cayenta Managed Services Plan (CMS); and, renaming of the Civic Auditorium to Idaho Falls Civic Center for the Performing Arts. The City Clerk requested approval of the Treasurer’s Report for the month of September, 2017; minutes from the October 23, 2017 Council Work Session and October 26, 2017 Council Meeting; and, license applications, including Beer Licenses to Bigs Bar LLC and Chinese Garden, all carrying the required approvals. It was moved by Councilmember Marohn, seconded by Councilmember Radford, to approve, accept, or receive all items on the Consent Agenda according to the recommendations presented. Roll call as follows: Aye – Councilmembers Marohn, Dingman, Ehardt, Hally, Radford, Smith. Nay – none. Motion carried. Regular Agenda: Public Works Subject: Environmental Systems Research Institute (ESRI) Small Enterprise Agreement for Geographic Information Systems (GIS) 1  November 9, 2017 For consideration is a Small Enterprise Agreement with ESRI for GIS software and services. This agreement will provide GIS software licensing and services to serve GIS needs of the City The agreement is for three (3) years and consists of an annual cost to the City of $51,000.00. The cost of the agreement will be shared by Public Works GIS (73.6%), Idaho Falls Power (16.00%), and Community Development Services (10.4%). Councilmember Ehardt stated this software and services will be utilized by staff on hand-held devices. It was moved by Councilmember Ehardt, seconded by Councilmember Dingman, to approve the Environmental Systems Research Institute (ESRI) Small Enterprise Agreement for Geographic Information Systems, and give authorization for the Mayor and City Clerk to execute the necessary documents. Roll call as follows: Aye – Councilmembers Smith, Hally, Dingman, Radford, Ehardt, Marohn. Nay – none. Motion carried. Community Development Services Subject: Public Hearing - Annexation and Initial Zoning of R-1, Annexation and Zoning Ordinances, and Reasoned Statements of Relevant Criteria and Standards, M&B: 91.09 Acres, Sec. 25&36, T3N, R37E For consideration is the application for Annexation and Initial Zoning of R-1, Annexation and Zoning Ordinances, and Reasoned Statement of Relevant Criteria and Standards, M&B: 91.09 Acres, Sections 25 & 36, T3N, R37E (NW Corner of N 5th West and E 65th North). The Planning and Zoning Commission considered this application at its October 3, 2017 meeting and recommended approval by unanimous vote. Staff concurs with this recommendation. Mayor Casper opened the public hearing and ordered all information presented be entered into the record. Community Development Services Assistant Director Kerry Beutler appeared with the following: Slide 1 – Property under consideration in current zoning Slide 2 – Aerial photo of property under consideration Slide 3 – Additional aerial photo of property under consideration Slide 4 – Comprehensive Plan Future Land Use Map Slide 5 – Photo looking west down power plant road Slide 6 – Photo looking north east from upper power plant Slide 7 – Photo looking south west from East River Road near the Bureau of Land Management (BLM) boat ramp Slide 8 – Photo looking west from East River Road, also showing fenced area of BLM Assistant Director Beutler stated this property is contiguous to the City and is also a Category A annexation. The northern portion of this property is within the Area of Impact (AOI), other portions of this property are outside of AOI. State Statue allows the annexation due to the Category A. Discussed followed regarding modification of the zoning ordinance for R-1 designation and Parks, Recreation Zone. Assistant Director Beutler believes residential development will occur near the facility due to the R-1 designation. Mayor Casper requested any public comment. No one appeared. Mayor Casper closed the public hearing. Councilmember Dingman believes the security of the public power source should be a priority. Councilmember Radford indicated this property has been contiguous for a while and he questioned the delay of the annexation. At the advice of the City Attorney, it was moved by Councilmember Radford, seconded by Councilmember Dingman, to re-open the public hearing. Roll call as follows: Aye – Councilmembers Marohn, Dingman, Ehardt, Hally, Radford, Smith. Nay – none. Motion carried. 2  November 9, 2017 Assistant Director Beutler believes this item is being presented at this time due to additional safety concerns at the facility as well as the preference to annex City property which is contiguous to the City. Idaho Falls Power Assistant Director Bear Prairie stated additional use of the recently replaced upper plant boat launch is anticipated. He also believes there should be continuity of ordinances. Mr. Fife stated the entrance from the west onto the property, which was being used as a public access road, was also an issue. He indicated Bonneville County will be required to change their designation map to indicate there is no longer a road. Mayor Casper once again closed the public hearing. It was moved by Councilmember Dingman, seconded by Councilmember Smith, to approve the Ordinance annexing M&B: 91.09 Acres, Sections 25 & 36, T3N, R37E (NW Corner of N 5th West and E 65th North), under the suspension of the rules requiring three complete and separate readings and that it be read by title and published by summary. Roll call as follows: Aye – Councilmembers Hally, Marohn, Radford, Dingman, Ehardt, Smith. Nay – none. Motion carried. At the request of Mayor Casper, the City Clerk read the ordinance by title only: ORDINANCE NO. 3140 AN ORDINANCE OF THE CITY OF IDAHO FALLS, IDAHO, A MUNICIPAL CORPORATION OF THE STATE OF IDAHO; PROVIDING FOR THE ANNEXATION OF APPROXIMATELY 91.092 ACRES DESCRIBED IN EXHIBIT A OF THIS ORDINANCE, AMENDING THE LEGAL DESCRIPTION OF THE CITY WITH THE APPROPRIATE COUNTY AND STATE AUTHORITIES; AND PROVIDING SEVERABILITY, PUBLICATION BY SUMMARY, AND ESTABLISHING EFFECTIVE DATE. It was moved by Councilmember Dingman, seconded by Councilmember Smith, to approve the Reasoned Statement of Relevant Criteria and Standards for the annexation for M&B: 91.09 Acres, Sections 25 & 36, T3N, R37E (NW Corner of N 5th West and E 65th North), and give authorization for the Mayor to execute the necessary documents. Roll call as follows: Aye – Councilmembers Ehardt, Radford, Smith, Marohn, Dingman, Hally. Nay – none. Motion carried. It was moved by Councilmember Dingman, seconded by Councilmember Smith, to approve the Ordinance assigning a Comprehensive Plan Designation of “Parks, Recreation” and establishing the initial zoning for M&B: 91.09 Acres, Sections 25 & 36, T3N, R37E (NW Corner of N 5th West and E 65th North) as R-1 (Residence Zone), under the suspension of the rules requiring three complete and separate readings and that it be read by title and published by summary, that the Comprehensive Plan be amended to include the area annexed herewith, and that the City Planner be instructed to reflect said annexation, zoning, and amendment to the Comprehensive Plan on the Comprehensive Plan and Zoning Maps located in the Planning Office. Roll call as follows: Aye – Councilmembers Radford, Ehardt, Hally, Smith, Marohn, Dingman. Nay – none. Motion carried. At the request of Mayor Casper, the City Clerk read the ordinance by title only: ORDINANCE NO. 3141 AN ORDINANCE OF THE CITY OF IDAHO FALLS, IDAHO, A MUNICIPAL CORPORATION OF THE STATE OF IDAHO; PROVIDING FOR THE INITIAL ZONING OF APPROXIMATELY 91.092 ACRES DESCRIBED IN EXHIBIT A OF THIS ORDINANCE AS R-1 ZONE; AND PROVIDING SEVERABILITY, PUBLICATION BY SUMMARY, AND ESTABLISHING EFFECTIVE DATE. It was moved by Councilmember Dingman, seconded by Councilmember Smith, to approve the Reasoned Statement of Relevant Criteria and Standards for the Initial Zoning of R-1 Residence Zone for M&B: 91.09 Acres, Sections 25 & 36, T3N, R37E (NW Corner of N 5th West and E 65th North), and give authorization for the Mayor 3  November 9, 2017 to execute the necessary documents. Roll call as follows: Aye – Councilmembers Marohn, Dingman, Ehardt, Hally, Radford, Smith. Nay – none. Motion carried. Subject: Public Hearing - Urban Renewal Plan for the Jackson Hole Junction Urban Renewal Project For consideration is the Urban Renewal Plan for the Jackson Hole Junction (JHJ) Urban Renewal Project. The Council adopted a resolution on July 13, 2017 determining that the area is eligible for an urban renewal project. The Idaho Falls Redevelopment Renewal Agency (IFRA) reviewed the Urban Renewal Plan at its September meeting and approved a plan with a $4 million cap and a 13-year time limit by a vote of 5-2. The Planning and Zoning (P&Z) Commission considered the plan at its October 3, 2017 meeting and found it to conform to the City’s Comprehensive Plan. Mayor Casper opened the public hearing and ordered all information presented be entered into the record. Assistant Director Beutler appeared with the following: Slide 1 – Aerial photo of property under consideration, approximately 45 acres Slide 2 – Proposed urban renewal plan - this plan will provide the Agency with a process and a basic framework within which to consider and proceed with specific projects. Plan recommended for approval by the Agency: Plan duration specified at 13 years; and, Plan improvements are limited to $4m. Table identifying potential projects, including utility and street improvements, basalt removal, engineering, and, management fees. Ryan Armbruster, attorney with Elam & Burke, Boise, Idaho, appeared. Mr. Armbruster stated he has served as the IFRA counsel for several years. Mayor Casper requested any public comment. Debra Nelson, attorney with Givens Pursley LLP, Boise, Idaho, appeared. Ms. Nelson presented the following: Slide 1 – Where are we today? • JHJ proposes a new commercial center at I-15 and Sunnyside • IFRA and City Council already decided the JHJ area is eligible under state law for an urban renewal district by approving the Eligibility Plan • IFRA prepared and approved an Urban Renewal Plan for the district, which describes the scope of improvements eligible for reimbursement • P&Z reviewed the approved Plan to confirm it is consistent with the City’s planning goals • The same Plan approved by IFRA and the P&Z is now presented to the Council Slide 2 – Why is urban renewal needed here? • One of the biggest hurdles to development of this area – the fragmented land ownership – required significant $$ to overcome • Safety issues require new infrastructure: new traffic signal, improved streets and water pressure for fire protection • City requested developer to expand improvements to serve larger area – including 5-lane Commercial Drive and new backbone sewer, water and power to connect to North • Basalt discovered in seismic study limits ability to widen streets and install deep utilities; construction costs are increasing • Cannot add these extra costs into pricing; discussions with national tenants: pricing must compete with shovel-ready sites Slide 3 – Why this location for a district? • Comprehensive Plan designates this site for a new regional shopping and employment center • Key gateway to the City; state designated route to Jackson Hole • New streets and backbone utilities will provide needed connection between this key entryway and City properties to north Slide 4 – Why this development? 4  November 9, 2017 • Thriving commercial center with national tenant hotels, retail, dining, professional offices at this new gateway will entice people to visit, live and invest in Idaho Falls • Experienced development team with local track record so City can have confidence in feasibility analysis and quality of development Slide 5 – Developer-funded; no public debt • Developer has already paid to assemble land • Developer has invested $100,000 in this process with IFRA • There will be no public debt for this district • Tax base will increase in short term by elimination of ag exemption and due to expiration of other large districts • Tax base will increase significantly over long term due to $110M private investment in site • Developer will fund over $10M in eligible improvements • Tax increment will only reimburse $4M of these costs, and only if the private investment sufficiently increases tax base within 13 years Slide 6 – Consistent with State Law • Plan meets general criteria in Idaho Code 50-2008: • Does not displace families, • Conforms to the general plan of the City, • Improves pedestrian, bike and vehicle safety, and • Promotes rehabilitation of the area by private enterprise • Plan meets additional criteria for development of “open land”: • Facilitates proper growth and development of the community in accordance with sound planning standards and local community objectives, • Addresses site deficiencies specified in state law, including: diversity of ownership, outmoded street patterns, economic disuse, faulty lot layouts, and the need to connect an area with other areas of a City Slide 7 – IFRA decision sets conservative precedent • Priority area within the City for development of type proposed here – evidenced by Comprehensive Plan • Large site with multiple businesses • Known, experienced developer with local track record so City can have confidence in economic feasibility and quality of project • Hurdles to development where urban renewal can even the playing field and incentivize private investment • Significant $$ contribution by developer for public improvements, so carrying own weight • Improvements exceed requirements and benefit a larger area • Reduced term from standard 20 to 13 years, with risk on developer to build out • Developer fronts money; no public debt Slide 8 – Conclusion • IFRA studied this issue extensively, formed a subcommittee, considered different options, solicited input from the taxing districts, and voted to approve it • Plan meets all of the legal criteria the City Council must consider and is consistent with IFRA mission • Decision here sets a conservative precedent • With the opportunity for reimbursement in this Plan (even though limited in $$ and term), JHJ is ready to invest in this site and the expanded public infrastructure At the request of Mayor Casper regarding taxing districts input, Ms. Nelson stated there was no formal solicitation because taxing districts are not a decision maker or a formal commenting agency. She indicated the agency did reach out to the school district and Bonneville County. No comments were offered from the school district as they are exempt. Ms. Nelson indicated the County Commissioners expressed their appreciation for the conversation and the limited scope. She stated Commission Dave Radford, who is an agency board member, voted in favor of this 5  November 9, 2017 project. To the response of Councilmember Radford, Ms. Nelson stated there were no specific comments on scope or specific dollar amounts. She also stated at that time the developer had compromised to a lower cap amount. She indicated Commissioner Christensen made several comments regarding impacts on revenues and the County budget process. She also indicated Commission Reed commented he was a newly-elected commissioner and did not have any experience with the plan. Joe Belloff, Idaho Falls, appeared. Mr. Belloff stated he has a Master’s Degree in Business Administration and has been engaged in land development business for the previous 27 years. Mr. Belloff stated he is in favor and endorses the JHJ plan. He believes the Sunnyside Road exit of I-15 has become a well-utilized access to the expanding areas of Idaho Falls. He also believes the proposed utility infrastructure, the traffic control additions, and the landscaping amenities will be an excellent addition to Idaho Falls. Mr. Belloff indicated joint cooperative effort between government and a private sector, when done in and for the right reasons, generally solves problems and results in highly favorable outcomes. Mr. Belloff reviewed the airport project on the west side of town including the support and cooperation of several groups. He believes the JHJ needs support and cooperation to succeed. He clarified he has not, or does not, anticipate any involvement with the development of this project. At the request of Councilmember Radford, Mr. Armbruster confirmed he is the attorney for the IFRA. Councilmember Radford requested from Mr. Armbruster reasons for the two (2) opposition votes. Mr. Armbruster stated Lee Radford, Chair of the IFRA, has submitted his comments for the opposition. He indicated, in his experience, it is unusual for the Chair to oppose. He was unaware of the concerns from the remaining opposition vote. Mr. Armbruster clarified all taxing entities that have an over-running levy in the area was given written notice, no response was received. Councilmember Marohn believes it is better to have a business partner in line. He also believes in the partnership of government and businesses to proceed forward. Mr. Armbruster believes a partnership provides the opportunity for a successful project. At the request of Councilmember Hally, Matt Morgan, Managing Developer for Morgan Construction Development, appeared. Mr. Morgan stated the land assembly with the land owners has been on-going for three (3) years. The signalization assembly with Idaho Transportation Department (ITD), which had been a point of contention for several years, took approximately two (2) years. At that point Mr. Morgan believed annexation was in the best interest for the development and the City as the sewer and water utilities were contiguous with the growing area. He indicated he has previous development with the City along Sunnyside Road and is hopeful future development can continue with the City. Councilmember Radford briefly reviewed a recent lawsuit against the Idaho Commerce Department, which has recently been overruled. He questioned the risk involved in a similar situation. Mr. Armbruster believes this particular issue is a standing case and it is difficult to access risk. He stated this plan has gone through the statutory proceedings and meets the requirements of said statues. Councilmember Radford questioned the $4m. Mr. Armbruster stated the developer will pre-fund all improvements and will only be paid back if, and only if, the development at an assessed value and at the levy rate returns enough money to pay back that $4m. He believes the site is eligible and has met the statutory laws. There being no additional comments, Mayor Casper closed the public hearing. Councilmember Dingman believes this is a gateway to the City and believes the entryway will be a foundation for economic development and growth. She believes the terms will ensure the developer is highly motivated. Councilmember Hally stated he is a member of the IFRA and indicated discussion has occurred with money being put at risk. He stated following the eligibility study, there was discussion to reduce the amount of money as well as the terms which he believes creates incentive. He believes in better quality development with IFRA funding. Councilmember Hally commended the developer and believes this is an important corridor. He is strongly in favor of the development. Councilmember Marohn concurred with Councilmember Dingman stating the process was followed per the legal terms. He believes this becomes a partnership with the business entity and the government. He also reminded the Council that Snake River Urban Renewal District will expire December 31, 2018 and the Pacheri/Yellowstone District will expire in 2019. Councilmember Marohn believes the additional district is 6  November 9, 2017 important for the growth and business community of the City. He believes it would be erroneous to reject this district and is a valuable project to endorse. He also believes urban renewal district is a model in the State. Councilmember Radford expressed his appreciation to the developer. He concurred with Councilmember Marohn with the stellar reputation of the IFRA. He believes the criteria to create a Redevelopment Agency across the State is broad. He also believes this project should proceed forward and there should be assistance with the basalt and the roadway for project but he expressed his concern with tax dollars being used for services. He also expressed his concern for future similar requests. Councilmember Radford believes this is greenfill development and the developer should develop. Councilmember Hally briefly reviewed the Eagle Ridge Urban Renewal District stating expenses are similar. He believes the IFRA is a good way to leverage taxpayer money. He also believes this is a valuable tool for Cities to create growth. Councilmember Marohn briefly reviewed costs for the Eagle Ridge Urban Renewal District. He believes the process has been validated. Councilmember Radford believes the taxpayer protected approach is to not approve the plan. Councilmember Ehardt expressed similar sentiments to Councilmember Radford. She believes Idaho Falls has been a model but this appears to be a deviation. She indicated she is not opposed to some money but is unsure of $4m. She expressed her appreciation to the businesses but is more favorable of other amounts. Councilmember Smith is hopeful for more developers. Councilmember Dingman believes the only deviation would be to deny a project that meets all the IFRA requirements. It was moved by Councilmember Dingman, seconded by Councilmember Smith, to approve the Ordinance approving the Urban Renewal Plan for the Jackson Hole Junction Urban Renewal Project, under the suspension of the rules requiring three complete and separate readings and that it be read by title and published by summary. Roll call as follows: Aye – Councilmembers Marohn, Hally, Smith, Dingman. Nay – Councilmember Ehardt, Radford. none. Motion carried. At the request of Mayor Casper, the City Clerk read the ordinance by title only: ORDINANCE NO. 3142 AN ORDINANCE OF THE CITY OF IDAHO FALLS, IDAHO, APPROVING THE URBAN RENEWAL PLAN FOR THE JACKSON HOLE JUNCTION URBAN RENEWAL PROJECT, WHICH PLAN INCLUDES REVENUE ALLOCATION FINANCING PROVISIONS; AUTHORIZING THE CITY CLERK TO TRANSMIT A COPY OF THIS ORDINANCE AND OTHER REQUIRED INFORMATION TO COUNTY AND STATE OFFICIALS; PROVIDING SEVERABILITY, CODIFICATION, PUBLICATION BY SUMMARY, AND ESTABLISHING AN EFFECTIVE DATE. There being no further business, the meeting adjourned at 8:43 p.m. s/ Kathy Hampton s/ Rebecca L. Noah Casper CITY CLERK MAYOR 7