Idaho Falls Redevelopment Agency

IDAHO FALLS REDEVELOPMENT AGENC Y P.O. BOX 50220 IDAHO FALLS, ID 83405 December 21, 2017 Regular Meeting Minutes Council Chambers Call to Order: Lee Radford called the meeting to order at 12:00. Members Present: Brent Thompson, Kirk Larsen, Thomas Halley, Dave Radford, Lee Radford, Terri Gazdik, Chris Harvey. Members Absent: None. Also Present: Brad Cramer; Ryan Armbruster (via telephone); and interested citizens. Modifications to Agenda: None. Minutes: Dave Radford moved to approve the minutes of November 16, 2017, Thomas Halley seconded the motion and it passed unanimously. Approval of Bills: Lee Radford presented the finance report dated December 21, 2017. The following bills were presented to be paid from the Snake River Allocation Fund: Elam and Burke, $2,607.50 for legal services; Rebecca Thompson, $40.00 for transcription of minutes; Woodbury Corp, $1,272,968.07 for OPA payment (subject to more discussion later in the meeting); IF-1 LLC, $400,000.00 needs to be ratified. The following bill was presented to be paid from Eagle Ridge Revenue Allocation Fund: Elam and Burke, $200.00 for legal services. The following bill was presented to be paid from the Jackson Hole Junction Revenue Allocation Fund: Elam and Burke, $8,199.25 for legal services. Brent Thompson moved to approve the Finance Report, Thomas Halley seconded the motion and it passed unanimously. Request for Reimbursement- Riverwalk Drive. Cramer indicated that the OPA that the Agency has with Woodbury Corp for the construction of Riverwalk Drive and site improvements for Springhill Suites, had a maximum reimbursement of $3,489,000.00. Cramer stated that the Agency has paid $2,216,031.93. Cramer stated that the invoices have been reviewed with Public Works to ensure accuracy and everything is in order. Cramer stated that at the last meeting the Board approved an additional $285,000 to be paid when the Agency has finances available. Cramer stated that there was still $1.27 million in expenses that was verified and consistent with the original proposals in the OPA and he would recommend approval of the reimbursement. Jeff Stokes, Woodbury. Stokes stated that they might come in below the additional $285,000. Radford asked if the project is complete. Stokes stated that the road has been accepted, and they are working with the contractor and City on some change orders that were outside of what the original OPA was, and they are verifying some of the unit costs and quantities. Radford asked if the hotel has its CO. Stokes stated that the hotel has been open for 4 months and has outperformed its budgets. Radford asked if the Greenbelt improvements are complete including grass and irrigation. Halley asked if the bathrooms are done. Stokes stated that the restroom is funded and budgeted for Parks and Rec to put in the restroom. Stokes stated that they donated building materials including stone that will match the stone on the hotel to make sure the bathroom looks great. 1 Idaho Falls Redevelopment Agency December 21, 2017 Brent Thompson moved to approve the payment of $1,272,968.07 to fulfill he OPA Commitment of $3,489,000.00, (not including the additional $285,000.00), Dave Radford seconded the motion and it passed unanimously. Bonneville Hotel Discussion and Consideration of Revised Disposition and Development Agreement and Actions Necessary for Response to Changes in Federal Tax Law Regarding Historic Preservation Credits. Radford stated that the with the new tax bill the impact on the housing tax credits has been unknown. Cramer stated that the proposed tax bill by Congress and Pres. Trump originally eliminated the Historic Tax Preservation Credit. Cramer stated that the Low-Income Tax Credits were not affected and the Bonneville has been awarded those tax credits. Cramer stated that the Republican version eliminated the historic preservation credit which was 20% of the financing for the Bonneville ($1.7 million). Cramer stated that the Senate version reinstated the Historic tax credits and there were over 300 amendments proposed to the Tax Bill and approximately12 were accepted and one was to leave the historic preservation credit, with the change being instead of a 1- year credit, it is now spread over 5 years, so the actual value of the credit goes down a bit. Cramer stated that at this point they do not have to worry about getting out of the option. Cramer stated that the project is still moving forward. Dave Radford asked about the need to reconvene the Board. Cramer stated that there will be no need to reconvene the Board at this point. Halley stated that the inflation factor will impact the tax credits because of the deficit. Lee Radford stated that the basic financing stack remains in tact and they can keep moving forward. Amend Note Discussion – Ball Ventures. Cramer stated that 1 year ago the Board amended the OPA with Ball Ventures to increase it $665,000.00 to do some extra work by White Water Drive. Cramer stated that the project has been completed and instead of putting the entire $665,000 into the note, Ball Ventures asked for a cash payment of a portion. Cramer stated that Mark Hagedorn and himself decided that $532,000 was the max recommendation and the Board approved the payment, but no motion was made to add the remaining $133,000 to the existing note balance. Cramer stated that the remaining 20% balance needs to be added to Ball Ventures existing OPA note. Lee Radford questioned if the $532,000 is under the Pancheri Yellowstone Fund. Mark Hagedorn indicated that $532,000 shows as a YTD expenditure that was paid last month, and the way the spread sheet printed it looks as if it is under Pancheri Yellowstone, but it is in a separate sub-section. Hagedorn stated that there are no commitments for additional expenditures in the River Commons Fund and they are just paying the 75% of property taxes as they come in. Lee Radford confirmed that there is $198,937.77 as a cushion. Terri Gazdik moved to put the remaining $133,000.00 into the existing OPA Note Balance, Kirk Larsen seconded the motion and it passed unanimously. Armbruster stated that he will coordinate with Ball Ventures to do an Amended note and get it out for signature. Project Update – The Broadway. Cramer stated that they removed 25 million lbs. of Rock. Cramer stated that they are making up for lost time during rock removal. Lee Radford stated that it appears they are forming up the elevator bank for the office building. Dave Radford asked about the parking projections for the building. Cramer stated that there are approximately 49 sub-surface parking stalls and an additional 22 surface parking, as well as a public plaza 2 Idaho Falls Redevelopment Agency December 21, 2017 that will feature amenities such as public water feature and the ability to host events. Dave Radford asked how the parking will be managed. Cramer stated that they have a parking management agreement where that will be determined, and some will be available for leases monthly, some may be hourly, some may be all day parking. Dave Radford asked if the Agency will have any input on the parking management. Cramer stated that the parking management it is stipulated clearly that it is public parking and not reserved for the tenants of the building. Next Regular Meeting: January 18, 2018. Thomas Halley moved to adjourn the meeting, Dave Radford seconded the motion and it passed unanimously. Respectfully Submitted: Beckie Thompson 3 Idaho Falls Redevelopment Agency December 21, 2017