Idaho Falls Redevelopment Agency

IDAHO FALLS REDEVELOPMENT AGENC Y P.O. BOX 50220 IDAHO FALLS, ID 83405 May 21, 2015 Regular Meeting Minutes Council Chambers Call to Order: Chair Radford called the meeting to order at 12:00 Members Present: Lee Radford, Terri Gazdik, Linda Martin, Thomas Hally, Brent Thompson, Kirk Larsen. Members Absent: Lee Staker. Also Present: Ryan Armbruster, Legal Counsel (via telephone), Renee Magee, Executive Director; Thayne Sparks, Agency Treasurer; Ed Marohn, City Council member, Brad Cramer, Community Development Services Director; Tahri Malifua and Tana Barney, Ball Ventures; Brent Martin, Park and Recreation Division. Modifications to Agenda: None Approval of Minutes: Thomas Hally moved to approve the minutes of the March 19, 2015 meeting, Terri Gazdik seconded the motion and it passed unanimously. 1 Approval of Bills: Lee Radford presented the finance report dated May 21, 2015. The following bills were presented to be paid from the Snake River Allocation fund: Elam and Burke, $3,405.37 for legal services; Unitarian Universalist Church, $2,760.00 for parking fees; Leland Consulting Group, $7,509.59 for housing study (partial payment); Renee Magee, $63.52 for reimbursement for office supplies. The following bill was paid from River Commons Revenue Allocation fund: Elam and Burke, $425.50 for legal services. Brent Thompson moved to approve the finance report, Linda Martin seconded the motion and it passed unanimously. Ball Ventures Note for $250,000.00: Tahri Malifua explained Ball Ventures is interested in obtaining a tax exempt note and understands the Agency will not finance the documentation to establish eligibility. Ball Ventures has drafted language allowing Ball Ventures to obtain the eligibility certification for tax exempt status and Armbruster has revised the language. The revisions are acceptable to Ball Ventures. Ryan Armbruster stated Ball Ventures drafted a proposed section of the note stating it may return to the Agency with the appropriate documentation to show the note qualifies for tax exempt treatment. This will be done at no cost to the Agency. Armbruster explained he added a sentence clarifying the agency is not representing or warranting the note is tax exempt. Ball Ventures will have to provide all the information in order to receive the tax exempt status. Radford explained the added language puts off of the tax exempt status of the note and clarifies Ball Ventures is responsible to get the documentation and approval they need for the tax exempt status. Hally asked if note approval is contingent on obtaining tax exemption status. Malifua clarified the note is not contingent upon Idaho Falls Redevelopment Agency, May 21, 2015 Ball Ventures getting the exemption. Instead, the tax exempt status is contingent upon Ball Ventures getting the appropriate documentation. Thomas Hally moved to approve the note to Ball Ventures, including the language discussed as to tax exempt status. Linda Martin seconded the motion and it passed unanimously. Tahri Malifua asked the Board about improvements for Snake River Landing, Division No. 8. Magee explained Ball Ventures is requesting $665,000 in additional assistance for rock removal in Division No. 8. The note previously discussed was for assistance on Divisions No. 6 and 7, i.e. Scientech and Bandon River Apartments for the construction of streets, water, sewer and storm drainage facilities. Magee stated the Agency approved approximately $1 million in assistance to complete Lochsa Drive, Whitewater Drive and White Sand Creek Way and portions of Bluff Street. Magee did not remember a specific discussion as to the improvements and allocation of the approximately $665,000 under the urban renewal plan. Malifua reminded the Board the Agency had agreed to allocate the remaining balance in the urban renewal plan, i.e., $665,000, in February for lava remediation and offsite improvements in Division No. 8. Ball Ventures asked if they could use the 2013 pricing used for Divisions No. 6 and No. 7 and if such pricing could be used to commence work without an executed Owner Participation Agreement (OPA). Could they proceed without competitively rebidding under the Agency’s guidelines? In addition to these two questions (use of 3013 bid prices and proceeding without executed OPA), Ball ventures is asking if it possible to use the remaining $665,000 in locations other than Snake River Landing, Division No. 8. Ball Ventures is not sure there will be $1.3 million of eligible cost in that division alone. Ball Ventures is requesting the amended OPA include more than 2 improvements to Division No. 8. One area in which there may be eligible public improvements is in Riverside Village. Radford stated the Agency took action on the $665,000. Magee clarified the issue in amending the OPA is obtaining a clear description of the public improvements and their location. Magee also discussed the issue of the 2013 bid with legal counsel. The Agency needs substantiation the unit costs are still reasonable, including concurrence by the engineering department. Malifua stated the reason the apartment project on Division No. 8 has not proceeded is the buyer is trying to understand the pricing and cost themselves. Malifua stated Ball Ventures agrees they or the buyer will have three competitive quotes. Ball Ventures wishes to move forward with the pricing subject to lowest pricing and will not expect the Agency to reimburse anything more than the lowest bid. Hally clarified and Malifua agreed the 2013 bid will be the ceiling. Radford asked if any action can be taken on this matter without it being on the agenda. Armbruster replied the Board can direct staff to begin the paperwork for the OPA amendment for discussion at the next meeting. Radford stated there are several issues to be addressed, including pricing and delineating the public improvements. Malifua asked if Ball Ventures may move forward with turning dirt before the Agency formally approves any amendments. Ball Ventures is under contract to sell this land and is ready to close once the buyer completes their due diligence. Ball Ventures anticipates closing between now and the next Agency meeting. There is a possibility Ball Ventures will commence the improvements eligible under the OPA guidelines without formal approval by the Agency. Malifua asked, assuming Ball Ventures proceeded under Idaho Falls Redevelopment Agency, May 21, 2015 the Agency guidelines, if the allocation could apply to reimbursing Ball Ventures for work prior to formal approval by the Agency. Armbruster stated, in the past, the Agency has not been inclined to grant any reimbursement if the developer comes to the Agency after the fact and provided no information beforehand to allow the Agency to participate or comment. In this matter, two things are being asked. One is to increase the amount of the OPA by approximately $665,000, and the second is, if the amended OPA is executed after Ball Ventures begins construction, will the Agency reimburse those expenses incurred prior to completion of the paperwork. Armbruster stated, given the project and the amount of discussion and communication, there is no legal problem if Ball Ventures begins work. Ball Ventures is at risk if there is no formal approval before they start the work; however, prior work could be considered in reimbursement. Hally stated this puts a cloud over the price of the sale. Malifua stated whether or not Ball Ventures receives the reimbursement determines how feasible it is to sell the land. Radford stated the Agency took action on the $665,000 and agreed $665,000 could be spent on rock removal. Magee read the motion made in February: “Linda Martin moved to approve an amendment to the OPA to allocate an amount not to exceed $665,000 to be used for lava rock removal, Thomas Hally seconded the motion and it passed unanimously.” Magee stated the issues are extending the improvements under the amended OPA to more than rock removal and using February 19, 2015, as the date of authorization for the expenditure of the $665,000 under an amended OPA. Malifua added the commitment may have to encompass more ground than Division No. 8. Armbruster stated the amendment to the OPA will have a maximum of $665,000 and describe the activities to which that reimbursement may be applied. The other underlying principles of the agreement still apply. Ball Ventures will still have to provide 3 verification of reasonable costs for the activities, i.e. bids, etc., and only the eligible activities will be paid. Radford stated Ball Ventures may move forward under the existing approval given in February with the understanding there will have to be documentation in the amended OPA. Armbruster added the Agency can direct staff to prepare an agreement corresponding to what has been stated and the agreement will come back for formal approval at the next meeting. Brent Thompson moved to direct staff to prepare the documentation and agreement as discussed, Linda Martin seconded the motion, and it passed unanimously. Tahri Malifua provided the Board with a map of Riverside Village. There are still plans for 200 multifamily units in Division No. 8. Hally asked about plans for the property near Teton Volkswagen. Malifua stated Ball Ventures has conceptual plans for the area between Snake River Parkway and Teton Toyota. Request for Additional Funding, Greenbelt Project Contiguous to Taylor Crossing. Brent Martin, Superintendent of Parks and Cemetery, read the memorandum dated May 18, 2015, from Greg Weitzel outlining the basis for the additional funding and overages incurred on the Greenbelt project adjacent to Taylor Crossing north of Pancheri Drive and south of Broadway. Magee clarified the requested $163,000.00 is for additional items and not the cost overruns. Martin replied the additional funds are for both. Magee explained the Walkers need to agree to the allocation of any additional funds coming from the Taylor Crossing allocation. Additional funding reduces the amount available for Riverwalk Drive. In addition, she is concerned about legal public access to this portion of the Greenbelt. Magee suggested the Board wait at least one Idaho Falls Redevelopment Agency, May 21, 2015 month in order to sort out ownership and public access issues to the Greenbelt in this area. This portion of the Greenbelt, since there was no public access for a portion of it, was originally designed to be a trail. The trail provided the only public access. There is still no public street through the entire area. Gazdik stated there is increased use of the park and people are parking alongside a road not constructed for public parking. The Board had discussed the need for parking access by the park. Linda Martin stated $108,000 is almost 30% of the total amount allocated by the Agency. She asked what were the change orders and how did the extra cost occur. Brent Martin replied there were necessary repairs to the work due to the rainy August and related work stoppages. Winter caused the construction to go slower. An archway bridge was removed at the request of the engineering department due to safety concerns. Linda Martin asked if there is documentation for all of the changes. Brent Martin stated there may be meeting notes but no other documentation. Radford asked for clarification as to whether the request is to make up the overages or for additional items. Martin replied the $163,000 will make up the shortfall and finish the project as it was originally designed. Brent Martin added the $60,000 the Rotary contributed was for the amenities, but Rotary money had to be used on another part of the project. Magee asked if the Rotary money was to be used for the playground. Brent Martin stated that the money from Rotary has been spent on the project. Brent Thompson asked if the Agency would then be paying for the overages since the money is just being shuffled around. Magee replied the Agency will be giving $163,000 more. Thompson asked, if Rotary was going to pay $60,000 for the playground but that money was spent on overages, is the Agency now paying for the playground 4 which was donated by Rotary. Brent Martin stated the overages were $108,000. Thompson asked if Rotary agreed the $60,000 was to be used for overages. Brent Martin stated Rotary just directed them to deposit the check and use it for the project. Magee explained, when there are overages, the overages are discussed with the Board during the process. The contract states the City will come back to the Agency and advise the Agency about the overages. Linda Martin asked if all of the things in the original plan were done. Brent Martin stated there are overages to the construction and we have not completed the project as presented. The money received for the project was deposited into an account and all payments came from that account. Magee asked, if it is only the overages being requested, is the amount $108,000, and not $163,000. Brent Martin responded $108,000.00 will cover the overages, and the $163,000 will complete the project. Radford asked what the time line is. Brent Martin responded finishing of the project, other than the playground, i.e., laying down the sod, without amenities, will be done in two weeks. The conduit is already in place: the bases and switches are needed. Playground equipment has to be ordered and an additional couple months is needed to complete the playground. Radford stated there are a lot of questions needing to be addressed. Thompson would like to get Rotary’s comments and understand how the notification of the overages was handled. Linda Martin would like notification before the overages are incurred. She is concerned about the original cost estimates and the work completed. Linda Martin wants to know the original plan, what has been done, and what is left undone with accurate estimates of what it will cost to finish. Brent Thompson moved to table the request for additional funding. Linda Martin seconded the motion and it passed unanimously. Idaho Falls Redevelopment Agency, May 21, 2015 Request for Land Transfer, Right-of-Way for Snake River Parkway and South Utah Avenue, Eagle Ridge Development. Magee explained the staff of Idaho Falls is requesting the Board consider completing a land transfer in the Eagle Ridge urban renewal district. Idaho Falls has a deed to the Snake River Parkway and Utah Avenue immediately north of Porter Canal. At the time of the construction of the bridge over the Porter Canal and the road between Snake River Parkway and South Utah Avenue, the property was not platted: the City accepted a deed for the right-of-way for the road. Now Eagle Ridge Development is proposing to plat the area and extend Snake River Parkway west to Pioneer Road. If the city signs the plat for the future right-of-way, small portions of public land will be left outside the right-of-way. The simplest way to fix the right-of-way issue is to have the City of Idaho Falls deed its property to the Agency and the Agency execute a deed to Eagle Ridge Partnership as part of the assistance to the developer for public improvements. The developer will then record the plat for the right-of-way and obtain title to very small portions of land outside the new right-of-way. This property exchange could be included in the Owner participation Agreement (OPA). Magee clarified all of the property is within the urban renewal district and the final plat was approved by the City Council. Thompson asked if there are multiple slivers of public land outside the proposed right- of-way. Magee responded there is one sliver of ground north of South Utah Avenue and a narrower sliver west of Snake River Parkway. Radford clarified the slivers of land are pieces the developer does not own presently: the City owns them. Radford summarized the City will deed the right-of-way to the Agency, the Agency will then deed the property to the developer and then the developer will then dedicate the right-of-way to the City. Linda Martin clarified this land transfer will be part of the OPA. Radford stated the question is will the Agency accept the deed 5 from the City in order to finalize the final plat in the urban renewal district. Brent Thompson moved to accept a deed from the City of Idaho Falls and then convey a deed to Eagle Ridge Development, LLC, provided the transfer of land is part of the OPA with Eagle Ridge Development, LLC. Martin seconded the motion and it passed unanimously. Payment for Simplot Circle Improvements. Magee requested authorization to provide to D and A Commercial Warehousing a check for $92,600 as a contribution to the construction costs of Simplot Circle as outlined in the construction agreement for Simplot Circle. D and A Commercial Warehousing executed a confirmation of costs document. Magee has reviewed the invoices received from Depatco and Briggs Builder for the road and bridge construction, including utilities. Using her most conservative estimate, the cost of the project, including the bridge was approximately $207,000. The agreement with D and A Commercial Warehousing provides reimbursement in the amount of $92,600 or 50% of the cost, whichever is less. Thompson asked if there was a question left about the excavation costs. Magee arrived at the reimbursement of $92,600 by totaling the invoices for a cost of $266,000. She then subtracted the payment by the City for sewer repairs ($28,000). She also subtracted the costs for 160 additional cubic yards for base, 115 tons of paving, and 1/3 of the excavation cost and, adding back the cost of bridge construction, arrived at the amount of $207,000. Radford said the bottom line is D and A has costs exceeding twice $92,600 which the Agency agreed to pay, so now the Agency is justified in approving the payment of the $92,600. Radford stated these costs included a road and a bridge from Utah to Simplot Circle. Terri Gazdik moved to authorize the Idaho Falls Redevelopment Agency, May 21, 2015 delivery of a check to D and A Commercial Warehousing provided the Certification of Cost has been executed, Thomas Hally seconded the motion and it passed unanimously. Downtown Housing Analysis and Land Use Study. Magee provided the map to the Board which she gave to Leland Consulting to illustrate the boundaries of the downtown study area. According to the Bonneville Metropolitan Planning Organization, there are 158 housing units and 3,000 employees in this same area. There were no objections by the Board as to the definition of the downtown area shown on the map. Riverwalk Drive Project in Taylor Crossing. Magee explained the chair requested a title search on the property adjacent to the proposed Riverwalk Drive. The title work has been completed and provided to staff. Radford asked Cramer or Magee to review the information and give a summary at next month’s meeting. Ryan Armbruster will assist staff in reviewing the title work. RAI Activities. Ryan Armbruster stated a legislative interim committee to study urban renewal legislation has been appointed. It is a ten member committee, five house members, and five senate members. Senator Siddoway has been appointed to the committee from the eastern part of Idaho. The two co-chairs of the committee, Senator Johnson from Lewiston and Representative Youngblood from Nampa, will have an organizational meeting and RAI will provide the Agency with a schedule. Cost Estimate and Owner Participation Agreement for Eagle Ridge Development. Magee said the issue has been covered under the land transfer item. 6 Linda Martin moved to enter executive session pursuant to Idaho Code Section 67- 2345(1)(c) to conduct deliberations concerning acquiring an interest in real property not owned by a public agency. Hally seconded the motion. Radford called for vote by roll call: Martin, yes; Thompson, yes; Gazdik, yes; Hally, yes; Larsen, yes; Radford, yes. Motion passed 6-0. Terri Gazdik moved to exit executive session, Thomas Hally seconded the motion. Radford called for vote by roll call: Martin, yes; Thompson, yes; Gazdik, yes; Hally, yes; Larsen, yes; Radford, yes. Motion passed 6-0. Next meeting of Agency is scheduled for June 18, 2015. Hally moved to adjourn the meeting, Martin seconded, and it passed unanimously. Respectfully Submitted: Beckie Thompson Idaho Falls Redevelopment Agency, May 21, 2015