Idaho Falls Redevelopment Agency

IDAHO FALLS REDEVELOPMENT AGENC Y P.O. BOX 50220 IDAHO FALLS, ID 83405 November 15, 2018 Regular Meeting Minutes Annex Building Conference Room Call to Order: Lee Radford called the meeting to order at 12:00. Members Present: Lee Radford, Kirk Larsen, Chris Harvey, Bren Thompson Members Absent: Terri Gazdik, Thomas Halley, David Radford Also Present: Brad Cramer; Ryan Armbruster, Esq. and interested citizens. 1. Modifications to Agenda: Kirk Larsen moved to add an item after item #8, for Brent Thompson to give a brief update on The Broadway, Chris Harvey seconded the motion and it passed unanimously. 2. Minutes October 18, 2018: Brent Thompson moved to approve the minutes for October 18, 2018, Kirk Larsen seconded the motion and it passed unanimously. 3. Approval of Expenditures and Financial Report. Lee Radford presented the finance report dated November 15, 2018. The following bills were presented to be paid from the Snake River Allocation Fund: Elam and Burke, $888.27 for legal services; Rebecca Thompson, $110.00 for transcription of minutes, Redevelopment Association of Idaho, $1,650 for annual dues and contribution to efforts on Legislative Advocacy; Idaho Counties Risk Management Program, $2,290.00 for insurance. There was a bill to be ratified in the sum of $142,542.14, to Woodbury Inc. Brent Thompson moved to approve the Finance Report, Chris Harvey seconded the motion and it passed unanimously. 4. Agreement with IFDDC for Downtown intersection improvements. Armbruster indicated there is a draft Grant Participation Agreement that mirrors other recent grants that provide funding as activities are completed and provides a not to exceed amount of $320,000.00. Armbruster included a process that upon inspection and acceptance by the City the amounts can be paid as they are completed. Catherine Smith, IFDDC. Smith indicated that Park and “A” Street is half way done (3 sides completed) before the asphalt plant shut down. They will begin in the Spring at Park and “B” Street. Kirk Larsen moved to approve the Grant Participation Agreement as presented subject to technical changes/corrections and authorize the Chair to sign the Agreement, Brent Thompson seconded the motion and it passed unanimously. 5. Agreement with Idaho Falls Public Works for Assistance with Broadway Streetscape Improvements. Armbruster proposed to use the model on the Greenbelt improvements near the Westbank where the Agency and the City enter into an Agreement where City Public Works designs and engineers the improvements for the Streetscape projects and will manage the construction contract process, prepare the bid specs, go out to bid, select the contractor, and manage the project. The Agency will agree to pay a not to exceed amount of $525,000.00. Armbruster indicated that the City will provide the Agency a copy of the design drawings, and information concerning the selection of the contractor. Armbruster stated that the City will be reimbursed for time and materials with design and engineering work. Cramer asked what level the Agency wants to be involved in the design. There was a consensus to 1 Idaho Falls Redevelopment Agency November 15, 2018. have the design brought to the Board prior to going to bid to ensure that the landscaping project is what the Agency envisioned. Brent Thompson moved to approve the Agreement with Idaho Falls Public Works for Assistance with the Broadway in a not to exceed amount of $525,000.00, subject to any technical corrections/changes, and that the design will be brought before the Agency prior to going out for bid to ensure the Board approves of the landscaping design, Kirk Larsen seconded the motion and it passed unanimously. 6. Memorandum Agreement, EPA Brownfield Grant. Cramer explained that the Agency agreed to be a coalition partner with the EPA Brownfield Grant that was received by the City for $600,000. Cramer indicated that in order to move forward each coalition partner needs to sign the agreement that says that the Agency is a partner and will work within the guidelines of the grant, and does not bind the Agency to anything. Cramer has signed this document so the funding can move forward as they had agreed to cover a phase I on the Pfaff building. Radford indicated that he revised the document and there is no obligation on the part of the Agency. Cramer explained that the total grant is for $600,000 and it is divided into sections for use. Cramer indicated that some of the main projects slated to happen will be a City wide Brownfields inventory, and will cover the cost of Phase I and Phase II environmental studies as areas that are designated as priorities, including Northgate Mile, Warehouse District, 1st Street, Lomax, Holmes. Cramer indicated that the Grant can pay for remediation planning, but not any actual remediation. Cramer indicated that the money can be used for feasibility studies on how to redevelop areas. Thompson asked if in 2019 will the Agency drop off as a partner. Armbruster indicated that they can continue to be a partner because there are other project areas. Radford asked what the Agency’s jurisdiction/Charter is for the rest of the community. Armbruster indicated that the Agency will continue to exist as an entity, and they can continue to administer and implement on the other Project Areas, and they have the authority to examine other areas within the City that might qualify for urban renewal planning. Thompson asked if the Agency can go back into an expired District. Armbruster stated that there have been efforts to go back and indicate that a piece of the area has not redeveloped and examine whether a new project area needs to be created for that area, assuming that it meets all the criteria. Armbruster stated that they have met some resistance in Boise. Kirk Larsen moved to ratify the signature on the Memorandum Agreement to be a partner with the City on the EPA Brownfield Grant, Chris Harvey seconded the motion and it passed unanimously. 7. Pfaff Building Project Proposals. Cramer indicated that the Agency received no proposals. Cramer stated that there was a lot of interest, but the feedback was that do to the current structural state of the building it is not feasible to do a project, unless the building came at no cost with a significant cash contribution from the Agency. Cramer stated that there are no eligible costs at the amounts that were needed ranging from $250,000 – 600,000. Kirk Larsen indicated that due to the constraints of the building having no back door the use is limited and it is not worth putting a lot of money into the project. Larsen asked what happens next and what are likely outcomes. Cramer stated that the owners believe they can do the repairs and fix the building into a leasable space, or the building is at risk to fall. Larsen asked if one of the adjacent property owners might be interested in the property. Cramer stated that there is likely not much interest. 2 Idaho Falls Redevelopment Agency November 15, 2018. Jake Durtsche, Durtshce indicated that the cost became an issue with the building. Durtsche had done a lot of research on the building and under the current construction conditions (8 months ago) it might have been possible to do it with a budget and schedule, however at this point he doesn’t believe that it could be completed in the timeline. Durtsche explained that the floor joist go into the brick and so there was anxiety amongst the contractors to assume the liability of “domino collapse of Downtown”. Durtsche stated that the foot print is 100’ x 25’ and Bateman Hall indicated that even if the bid was overpriced it wasn’t worth the time compared to the liability. Durtsche stated that he spoke with Chip Langerack (owner of Villa). Durtsche stated that they had discussed the back egress and the potential of paying for an easement. Durtsche and Langerack walked the area with Reggi, the building administrator, and tried to figure out if they could cut a hole and access the Villa’s alley access to give the Pfaff building back egress so they could look at change of use. Durtsche indicated that Reggi and the Fire Department agreed that it would work, however he was unable to come to an agreement with Langerack. Durtsche indicated that Langerack did seem potentially interested in the building, however it was cost prohibitive. Radford indicated that the owners and adjoining building owners need to be notified of the information that has been found so they can use it in a positive way. Greg Croft, Resign Architecture. Croft indicated that they had looked at using the building for their company as an office space on first floor with residential above. Croft had a third party review the design skematics and do a cost analysis that came back approximately 2x more than they anticipated. Croft stated that the proforma presented a negative ROI for the foreseeable future. Croft stated that rents downtown are around $1/sq. ft. per month, and they needed $2/sq. ft. per month to make the project work. Croft indicated that they had two options one with a 3rd floor penthouse unit and that came in at $1.2 million; and without the penthouse it was $950,000.00. Croft indicated they sent the proposal to Bateman Hall and Big D Construction and they confirmed that the numbers were correct. Thompson asked Durtsche if there is a required second access out the back. Durtsche stated that the current use for mercantile/office then the back access would not be necessary, however, if they change the use they would have to be brought up to current standards and the back access would be an issue. Thompson clarified that the idea was to go through the Villa for the back access. Radford indicated that they need to give notice to the owners to terminate the option. Kirk Larsen moved to notify the owner of the Pfaff building that the Agency will terminate the option on the Pfaff building because no acceptable proposals were received; and provide information to the adjoining owners and if possible the entire block and give them the information that has been found about the building, Brent Thompson seconded the motion and it passed unanimously. 8. Execution of Note with Eagle Ridge Development, LLC. Cramer indicted that the developers for the Eagle Ridge District have some other projects in mind and that brought them back to the table and brought up the unsigned note that was discussed in the OPA. Cramer stated that he now has all documents he needs to review the costs and by the next meeting should have a report. Radford asked if there has been any increment in the District. Cramer indicated that Guns N Gear site is the only one that was captured. Radford confirmed that Cramer was talking with the owner Jack Hunsaker. 9. Update on The Broadway. Brent Thompson indicated that Jeremy Malone has given an update on the project as follows: Smokin Fins has temp CO and will open on December 3; Concrete on Plaza has been poured with one exception; garage is almost completed, ramp is still in progress, synthetic stucco will commence next week to be completed by December 3; State Elevator Inspection on December 3; 3 Idaho Falls Redevelopment Agency November 15, 2018. Garage can be used for parking once it receives its final CO after elevator inspection; lots of inquires regarding vacant space, but no new leases; Smokin Fins, Lucy’s Pizza, Bank of Idaho, and Parsons Bailey have leases and are slated to be completed in the first quarter of 2019. 10. Annual Audit. Cramer stated that they received the initial notice from Rudd and Company to proceed with he Audit, however with the City changing auditors there is a question on whether or not the Agency should change auditors. Mark Hagedorn indicated that the City changed auditors so they only had to employ one and it requires a specialized auditor to do energy generation. Hagedorn indicated that the City likes to change auditors every 3-7 years. Hagedorn stated that if the Board wants to change on a regular basis that is fine. Hagedorn asked if the Agency wants to change auditors in the middle of closing a District, and have to teach the District to a new auditor. Hagedorn indicated that usually they would change auditors before year end. Radford indicated that they City switched 2 years ago and the new auditor did find some things that the old auditor hadn’t seen. Armbruster indicated that with the Snake River Area closing out it would need to also do the year ending September 2019. Armbruster suggested that the Agency stick with Rudd & Company for the next 2 years. Kirk Larsen asked if they should use the same auditor as the City. Armbruster indicated that it is up to the Agency, but there is nothing in the statute that requires it to be done a certain way. Hagedorn stated that the City plans to change auditors in 2 years. Radford indicated that it is a complicated Audit and Rudd & Company understand the finances. Armbruster stated that the array of candidates is likely small because accounting firms will not touch government funds. There was a consensus to stay with Rudd and Company and then look into other firms after Snake River District closes. Next Regular Meeting: December 20, 2018 Brent Thompson moved to adjourn the meeting, Kirk Larsen seconded the motion and it passed unanimously. Respectfully Submitted: Beckie Thompson 4 Idaho Falls Redevelopment Agency November 15, 2018.