Idaho Falls Redevelopment Agency

IDAHO FALLS REDEVELOPMENT AGENC Y P.O. BOX 50220 IDAHO FALLS, ID 83405 June 18, 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, Thomas Hally, Brent Thompson, Kirk Larsen Members Absent: Lee Staker, Linda Martin Also Present: Renee Magee, Executive Director; Thayne Sparks, Agency Treasurer; Ryan Armbruster, Legal Counsel (via telephone); Ed Marohn, City Council Member; Brad Cramer, Community Development Services Director; Tahri Malifua, Ball Ventures. Modifications to Agenda: None Approval of Minutes: Brent Thompson moved to approve the minutes of the May 21, 2015 meeting, Kirk Larsen seconded the motion and it passed unanimously. Approval of Bills: Lee Radford presented the finance report dated June 18, 2015. The following bills were presented to be paid from the Snake River Allocation fund: Leland Consulting Group, $6,750.00 for payment on the housing study, and Douglas N. Hix, D&A Commercial Warehousing, $92,600.00 for improvements on Simplot Circle. The following bill was paid from River Commons Revenue Allocation fund: Post Register, $88.35 for publication. Hally moved to approve the finance report, Thompson seconded the motion and it passed unanimously. Resolution Authorizing Tax Exempt Note to BV Lending for Public Improvements for Snake River Landing Divisions, No. 6 and 7: Ryan Armbruster explained the $250,000 note authorized by the Agency to Ball Ventures permits Ball Ventures to take the necessary steps to have the note deemed tax exempt. A tax exempt note allows Ball Ventures to not pay taxes on any interest earned on the note. Since the May meeting, Ball Ventures has engaged the law firm Hawley Troxell to prepare the necessary documents. A resolution has been prepared for Agency adoption today. The other documents in the meeting packet will be signed when the note is closed in thirty days. Armbruster does not have any issues with the documents. These documents are similar to those approved in 2009 when the Agency approved the existing $8 million note. Tahri Malifua addressed the Board and stated the intent of Ball Ventures had been to postpone the filing for tax exempt status due to the cost. However, Ball Ventures was advised by their legal counsel, the longer they waited, the less likely they were to receive the tax exempt status. Radford read the resolution by title. Radford stated the note for $250,000 has the 4.5% interest rate discussed previously by the Board. Hally moved to approve the resolution authorizing the tax exempt note, Thompson seconded the motion. Radford called for vote by roll call: Gazdik, yes; Hally, yes; Larsen, yes; Radford, yes; Thompson, yes. Martin and Staker were absent. The motion passed 5-0. Idaho Falls Redevelopment Agency June 18, 2015 1 Radford asked Malifua for an update on the Snake River Landing projects. Malifua advised the hotel is near completion and there are other projects in the works, but he has no specifics at this time. Request for Additional Funding, Greenbelt Project Contiguous to Taylor Crossing, Idaho Falls Department of Parks and Recreation. Radford advised this agenda item has been withdrawn by Parks and Recreation. He met with Greg Weitzel to discuss some of the items requested. Weitzel will prepare a new request and return next month. The Phase 2 ribbon cutting is scheduled for today. Hally said he will be at the ribbon cutting in place of the Mayor and will recognize the Redevelopment Agency. Radford summarized the funding for the improvements in Phase 2: the Agency authorized $390,000 and Rotary authorized $60,000 for a total of $450,000. Downtown Housing Market Analysis and Land Use Study. Magee reviewed the estimated demand for housing units formulated by Leland Consulting in the Downtown Housing Market Analysis. This information is found on pages 29 and 30 of the report. Leland Consulting estimated there is a demand for 455 units, 217 are potential owner occupied, 238 are renter occupied units. Leland Consulting used a second methodology based on the employment in the downtown area. Using that analysis, Leland Consulting determined a potential for 500 additional housing units in the downtown area. Magee quickly reviewed needed corrections in the study. She also thought an executive summary with the potential units in the first few pages would be helpful. Thompson found a few minor errors and will send those to Magee. Thompson asked how many units are pending in the Montgomery Ward building. Magee stated five units at the most. Thompson asked if there could be an exception for the Montgomery Ward building listed in the conclusions. Hally asked if Leland could put emphasis on the statement found on page 30: “Ordinarily Private Investment Follows Public Investment, not the other way around. The Challenge facing Idaho Falls is priming the pump to create a public and private partnership that develops a residential demonstration project in the downtown.” Radford asked Thompson if he felt this housing study will be a good resource for developers. Thompson stated he believes it has all the information they could want. Thompson suggested, after the developers review the study and corrections are made to the housing study, the Board telephonically meet with Leland to go over the study. Completion of Simplot Circle and River Walk Drive Project, Taylor Crossing. Radford stated he and City officials met with Woodbury. Woodbury is proposing to build an extended stay motel, Springhill Suites, south of the railroad tracks. The hotel will be a four story hotel with parking surrounding it. The building will be rectangular with one side facing the Snake River. It will not disturb the Greenbelt. Simplot Circle could be redeveloped as a round-about lining up with the roundabout on Bridgeport Drive. Thompson asked if Woodbury will get an easement across the railroad property. Radford responded they are working with the Walkers and Lorin Walker has worked with the railroad. Radford explained Woodbury is planning to use railroad property for access. One access will cross to the east of the Marriott Inn through the existing easement. The other will be to the west of Marriott Inn to access the proposed parking lot. Woodbury is willing to provide public parking. Radford said the largest issue with constructing River Walk Drive is the title issues. Woodbury is willing to move forward and that is positive news. Cooper Norman bought a rectangular parcel directly north of the current Cooper Norman building to expand their parking lot. Radford will speak to the attorney of Cooper-Norman about the sale. Radford asked for feedback from the Board members about moving forward with River Walk Drive. Hally stated River Walk Drive will lever additional development. The new hotel is a starting point for added valuations that support the expenditure on River Walk Drive. Gazdik stated the initial concept for Taylor Crossing had restaurant sites. The development of a road will spur interest in the area. In response to a question from Larsen, Radford replied the tie into Simplot Idaho Falls Redevelopment Agency June 18, 2015 2 Circle will most likely be a roundabout. Larsen agreed, with a new hotel, there will be a lot of interest, especially for the sites right along the Snake River for restaurants. Larsen added River Walk Drive, if built by the Agency, will benefit the contiguous land which is owned by private land owners, the Walkers. There will no control over whether the Walkers sell their land or hold onto it. This is a risk. Thompson believes there will be a perception the Agency is directly aiding them. Magee replied it will not be any greater risk than the initial risk. The Agency funded the construction of Utah Avenue through Taylor Crossing, although the Agency did not finance the fountain. The Agency also funded Bridgeport Drive and the bridge. The Agency has funded the public water, sewer, streets and power conduit for Taylor Crossing. Gazdik stated, on several occasions, the Agency has discussed this road needs to be reconstructed and improved with parking. The Agency can justify road improvement and parking development. It would be done, not just to assist the developer, but to finish what the Agency has begun. Radford stated there are three components to River Walk Drive: road improvements, public parking, and access easements. The Agency needs to ensure there are easements from River Walk Drive to the Greenbelt. There is now a beautiful park extending from north of Bridgeport Drive to Pancheri which needs parking access and easement access for the public. Woodbury is very cooperative: their parking lot will be on the path and they are willing to give public parking spaces for access to the path. Along the former Milligan Road, there is no provision for parking. Radford said there is a consensus of the Board is to move forward. Legislative Interim Committee and RAI Updates. Armbruster stated the State Legislative interim committee on urban renewal will meet on August 10 and August 24, 2015 in Boise. The formal agenda has not been posted. Armbruster suspected the first meeting will be primarily organizational: the committee will map out what they intend to do over the next several months, including whether they will hold any sessions throughout the State. Armbruster suspects the same issues discussed in the Legislative session will be the issues for the committee: funding public buildings and parks, the need for accountability, commissioner eligibility, and more oversight. Senator Siddoway is on the committee and he has been extremely helpful in the past. Armbruster stated the challenge will be to try to get as many developers who benefited from tax increment financing to the committee meetings and hearings, e.g, Courtney Liddiard would be a great person to testify to the committee. Motion to Enter Executive Session Pursuant to Idaho Code Section 67-2345(1)(c) to Conduct Deliberations Concerning Acquiring an Interest in Real Property Which is Not Owned by a Public Agency: Thompson moved to enter into executive session pursuant to Idaho Code Section 67- 2345(1)(c). Hally seconded the motion. Radford called for vote by roll call: Thompson, yes; Gazdik, yes; Hally, yes; Larsen, yes; Radford, yes. Martin and Staker were absent. Motion passed 5-0. Thompson moved to exit executive session, Hally seconded the motion. Radford called for vote by roll call: Thompson, yes; Gazdik, yes; Halley, yes; Larsen, yes; Radford, yes. Martin and Staker were absent. Motion passed 5-0. Next meeting of Agency is scheduled for July 16, 2015. Hally moved to adjourn the meeting, Larsen seconded the motion and it passed unanimously. Respectfully Submitted: Beckie Thompson Idaho Falls Redevelopment Agency June 18, 2015 3