Idaho Falls Redevelopment Agency

IDAHO FALLS REDEVELOPMENT AGENC Y P.O. BOX 50220 IDAHO FALLS, ID 83405 July 2, 2015 Special 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, Brent Thompson, Lee Staker. Members Absent: Kirk Larsen, Tom Hally. Also Present: Renee Magee, Executive Director; Ryan Armbruster, Legal Counsel (Telephonic); Ed Marohn, City Council; Jeff Freiberg, Freiberg Engineering. Modifications to Agenda: None. Resolution Approving Owner Participation Agreement with Eagle Ridge Development LLC and Authorizing the Necessary Signatures: Lee Radford explained Eagle Ridge Development was ready to begin construction on the roadway connection between Snake River Parkway, Utah Avenue, and Pioneer Road. In order not to delay construction, the Agency Board called a special meeting to approve the owner participation agreement (OPA) and authorize the issuance of a deed for the roadway. Jeff Freiberg, representative for Eagle Ridge Development LLC, stated HK Contractors, who submitted the lowest bid, received a notice to proceed on June 15. The improvements will encompass Eagle Ridge, Division No. 3, including the intersection of Utah Avenue, Snake River Parkway, and the extension to Pioneer Road. The road profile will match the profile of Snake River Parkway. Ryan Armbruster discussed the commitment in the owner participation agreement to repay Eagle Ridge Development eight-five percent of the tax increment. This reflects the urban renewal plan. The consultant felt the administrative costs would be low in this district and repayment may be more likely with this percentage. This is different than the Agency standard OPA. Freiberg explained the location and need for the right-of-way deed. The agreement provides for the exchange of right-of-way between the City of Idaho Falls, the Agency, and the developer. Radford clarified the names of the bidders and bid amounts. Freiberg said the difference between the bid for Division No. 3 and the amount in the OPA will finance the remaining construction of Utah Avenue to approximately Guns and Gear. Magee stated there will be another agreement for the improvements on Pioneer Road in the Amended Snake River urban renewal district. She also reviewed the location of the improvements, the land exchange, the bid tabulation, the major points of the owner participation agreement, and the relocation of the Rocky Mountain Power lines. Thompson asked about the remaining portion of Utah Avenue which not be improved. Freiberg explained the improvements will be blended into the existing road until Eagle Ridge Development is prepared to improve Utah Avenue to Robertson Supply. Armbruster quickly reviewed the owner participation agreement. It creates the commitment for the Agency to repay the developer an amount not to exceed $1,750,000 for public improvements. After acceptance of the improvements by the City, the Agency will enter into a note. The developer will be repaid for the cost of the improvements over the life of the plan. Lee Staker moved to approve the resolution authorizing execution of the owner participation agreement and the quit claim deed for 1.3 acres of road right-of-way. Terri Gazdik seconded the motion. Lee Radford clarified it was unusual for the Agency to authorize notes at 85% of the tax increment and this is not a Idaho Falls Redevelopment Agency, July 2, 2015 1 pattern the Agency will follow. This was done since the developer is undertaking a major risk (there may not be any properties sold as of yet), the period of time for the district is short, and eighty-five percent was discussed in the urban renewal plan. A roll call vote was taken: Gazdik, yes; Martin, yes; Radford, yes; Staker, yes; Thompson, yes. Larsen and Hally were absent. The motion passed 5-0. Motion to Enter Executive Session Pursuant to Idaho Code Section 74-206(1)(c) to Conduct Deliberations Concerning Acquiring an Interest in Real Property Which is Not Owned by a Public Agency: Brent Thompson moved to enter into executive session pursuant to Idaho Code Section 74-206(1)(c), and Lee Staker seconded the motion. Radford called for vote by roll call: Gazdik, yes; Hally, absent; Larsen, absent; Martin, yes; Staker, yes; Radford, yes; Thompson, yes. Motion passed 5-0. Terri Gazdik moved to exit executive session, Brent Thompson seconded the motion. Radford called for vote by roll call: Martin, yes; Thompson, yes; Gazdik, yes; Staker, yes; Radford, yes. Hally and Larsen were absent. Motion passed 6-0. Next meeting of Agency is scheduled for July 16, 2015. Lee Staker moved to adjourn the meeting, Terri Gazdik seconded the motion and it passed unanimously. Respectfully Submitted: Renee Magee Idaho Falls Redevelopment Agency, July 2, 2015 2