Idaho Falls Redevelopment Agency

IDAHO FALLS REDEVELOPMENT AGENC Y P.O. BOX 50220 IDAHO FALLS, ID 83405 July 16, 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, Lee Staker, and Linda Martin. Members Absent: None. 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; Greg Weitzel, Parks and Recreation. Modifications to Agenda: None Approval of Minutes: Brent Thompson moved to approve the minutes of the June 18, 2015 and July 2, 2015 meetings, Lee Staker seconded the motion and it passed unanimously. Approval of Bills: Lee Radford presented the finance report dated July 16, 2015. The following bills were presented to be paid from the Snake River Allocation fund: Rebecca Thompson, $180.00 for transcription of minutes; and Elam and Burke, $937.75 for legal services. The following bills were paid from River Commons Revenue Allocation fund: Elam and Burke, $462.50 for legal services; and Post Register, $88.35 for publication. Brent Thompson moved to approve the finance report, Thomas Hally seconded the motion and it passed unanimously. Amended Owner Participation Agreement for Ball Ventures, Improvements at Snake River Landing, and Note Documents, Snake River Landing, Divisions No. 6 and No. 7. Magee showed slides to orient the Board to the location of Snake River Landing, Division No. 8, which is south of Whitewater Drive and west of White Sand Creek Way. The slides also reviewed the major points in the amended OPA. Ryan Armbruster stated this is the third version of the OPA. The recent commitment was approved a year ago. Armbruster stated the second amended OPA addresses $665,000 of construction in Division No. 8 and the neighboring areas, including the sidewalk improvements located within an easement for utilities. Earlier agreements include the process Ball Ventures should use for bidding and verification of incurred costs. The final amount of eligible costs will be inserted into the third note between the Agency and the developer. Armbruster stated the interest rate is 4.5%. Whether all of the $665,000 in costs is tax exempt is open to question and that issue will be handled when the project is completed and the Agency is ready to issue the note. The resolution to be passed by the Board will formally approve the agreement and authorize the chair to sign the necessary documents after any technical corrections are made. Magee stated the urban renewal plan anticipates over $10 million worth of assistance from the Agency. This commitment of $665,000 will complete the amount envisioned in the plan. Armbruster explained the first OPA did not exceed $8.3 million and the second one committed about a million dollars to Ball Ventures and Bandon River. Armbruster stated the $665,000 will bring the Agency very close to the $10 million allocated in the River Commons Urban Renewal Plan. Staker noted the draft OPA contains the number $650,000 on page 3. Radford requested the draft be changed to state $665,000 consistently. Idaho Falls Redevelopment Agency July 16, 2015 1 Tahri Malifua, Ball Ventures, stated he concurs with everything described. Malifua offered to add technical language clarifying the amount of additional assistance. Malifua stated he reviewed the documents and, with a few technical changes, this process should be smoother than the last one. Radford asked for status on the project. Malifua responded he is unsure on the status of the permit from the buyer, but ground has been broken on the site. Radford asked if the use is confidential. Malifua stated it is an apartment complex around 240 units of higher end one to three bedroom units. Gazdik asked if they are anticipating the cost of the improvements will be less than the $665,000. Malifua stated he does not know: $300,000 has already been used. The amount of lava remediation needed is unknown. Gazdik clarified and Malifua agreed the assistance is limited to eligible projects and the entire amount may not be used. Radford requested a motion on the approval of the resolution. Kirk Larsen moved to approve the resolution approving the Second Amended Owner Participation Agreement and authorize the necessary signatures, Terri Gazdik seconded the motion and it passed unanimously. Request for Additional Funding, Greenbelt Project Contiguous to Taylor Crossing, Idaho Falls Department of Parks and Recreation. Greg Weitzel, Parks and Recreation director, stated the City is working with the Idaho Transportation Department on the west side Greenbelt redevelopment project located north of Broadway to John Hole’s bridge. The City received approval to start in early September. Construction will end when it snows and be completed in the spring. Weitzel apologized for the confusion at the last meeting. River Gardens Phase 2 project is near completion and was in completed within budget. There were some surprise change orders and overages. After the bids had been favorable, it had been hoped there would be enough funding left to complete lighting for safety and security. He is now requesting additional funding for lighting. There are two options: thirty-five bollards at $1,446.00 each installed for a total cost of $50,600 or seventeen LED light fixtures with an installed cost of $5,238 each for a total cost of $89,100. The park has won two state awards, a state parks award for “Best Park” in Idaho last year, and an award from the Association of Idaho Cities. In response to numerous questions from the Board members, Weitzel clarified the acorn lights will last longer and be less costly to maintain, although they cost more initially. They are also less subject to vandalism and provide more light. Radford clarified the acorn lights are the same type of lights on Memorial Drive. In response to Radford, Weitzel said the stubs or stakes will be capped off. Hally asked if the capped units could be used for outlets. Weitzel answered it has been discussed, especially for weddings and celebrations. The bollard and acorn lights have power outlets in them. Magee explained there is about $302,000 in cash allocated to Taylor Crossing. This request will reduce the cash and, therefore, the amount of money for River Walk Drive. The OPA with Tavlor Crossing had been amended to approve expenditure of $390,000 for River Gardens Phase 2 from the Taylor Crossing allocation. She suggested another amendment to the OPA to cover this request for lighting. Armbruster stated he could do a short amended OPA. Magee said it will make it clear to all the parties why the allocation is down $90,000. Radford explained, if this additional funding is approved, it will have to be subject to the approval by the Walkers. Hally commented the Parks and Recreation department has had to maintain an additional 160 acres without an increase in work force: security and adequate lighting is important. He prefers the acorn lighting. Gazdik noted this area has traditionally attracted a lot of homeless people and it is important to have adequate lighting in the area. Gazdik stated, due to a conflict of interest, she needs to recuse herself from the vote on this matter. Lee Staker moved to approve $89,100 in additional funding requested for River Gardens Phase 2 for the acorn style lighting, subject to the approval of an amended OPA covering the expenditure, Hally seconded the motion and it passed unanimously. Idaho Falls Redevelopment Agency July 16, 2015 2 Proposed Budget and Authorization for Advertising Public Hearing. Sparks stated the public hearing on the 2016 budget will be on August 20, 2015, and the publication dates will be August 9 and August 16, 2015. Sparks reviewed the budget. The major change for the next year is an additional district, Eagle Ridge. Any changes in revenue are due to additional increments from improvements. The Redevelopment Agency does not set any levies, but receives the incremental taxes on the property. The interest revenue is not much different from the previous years. There are some contingencies in the River Commons district and in the new Eagle Ridge for improvements being completed. Sparks stated one of the notes, $665,000, in River Commons was discussed today. When there are notes or expenditures, there is construction to balance the note. There are capital projects in both Eagle Ridge and Rivers Common. Since the Snake River Allocation Fund is close to its sunset, there are projects in the planning and the capital projects reflect $5.6 million. Gazdik asked Sparks to clarify his discussion of notes. Sparks replied the developer is paying for the construction and then the Agency writes a note for costs for that construction. He has to account for those expenses as if the Agency completed the construction, although the developer is doing it and is paying the costs. Gazdik stated it is not actual cash expense. Gazdik moved to approve the proposed budget and authorize the publication of the notice for the public hearing, Martin seconded the motion and it passed unanimously. River Walk Drive Project. Radford explained he has been trying to meet with the Walkers about the River Walk Drive project. He has told the Walkers the Agency will not proceed with the project until there is a common vision for the drive. One of the main issues is whether the drive is a public or private street. The Walkers wish to continue the private drive. The Agency prefers a public street with city design and administration of construction and city maintenance in the future. Radford has invited them to make a presentation to the Agency to discuss the matter. Staker asked why the Walkers wish to have a private street. Magee said the Agency agreed to a private street on the first projects completed and it had to do with parking and layout. Radford said the street in front of the Cooper Norman building and the Alliance Title building is private at this point. Cooper Norman has to be approached about assistance to make the road public. To avoid any unnecessary expenditures, the project will be suspended until everyone is on the same page. Legislative Interim Committee and RAI Updates. Armbruster stated he has not seen a formal agenda from the interim committee for the August meetings. Armbruster believes the August 10 meeting will be more organizational and the August 24 meeting may be open to testimony from those who are in favor and those who are opposed. There have been some entities that have provided material to the committee members and the RAI Board is meeting this afternoon to outline material it may present. Armbruster will be presenting the history and overview of urban renewal to them on August 10. Due to budget constraints, the committee may stay in Boise. Magee added Representative Wendy Horman emailed Magee and asked if Magee is willing to talk to Representative Youngblood, one of the co-chairs of the interim committee. Magee agreed to speak to him. Final Version, Downtown Housing Study. Magee has distributed a final copy of the downtown housing study. Corrections were made and an executive summary prepared. The study concludes housing in the downtown area will require a public/private partnership. It was suggested the study be placed on the Agency webpage and distributed to the Idaho Falls Downtown Development Corporation and commercial realtors. 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: Brent Thompson moved to enter into executive session pursuant to Idaho Code Section Idaho Falls Redevelopment Agency July 16, 2015 3 67-2345(1)(c), and Hally seconded the motion. Radford called for vote by roll call: Thompson, yes; Gazdik, yes; Hally, yes; Larsen, yes; Martin, yes; Radford, yes; Staker, yes. Motion passed 7-0. Brent Thompson moved to exit executive session, Terri Gazdik seconded the motion. Radford called for vote by roll call: Thompson, yes; Gazdik, yes; Hally, yes; Larsen, yes; Radford, yes; Marin, yes; Staker, abstain. Motion passed Kirk Larsen moved to adjourn the meeting, Terri Gazdik seconded the motion and it passed unanimously. Respectfully Submitted: Beckie Thompson Idaho Falls Redevelopment Agency July 16, 2015 4