Idaho Falls Redevelopment Agency

IDAHO FALLS REDEVELOPMENT AGENC Y P.O. BOX 50220 IDAHO FALLS, ID 83405 December 20, 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, Brent Thompson, Terri Gazdik, Thomas Hally Members Absent: David Radford Also Present: Brad Cramer; Ryan Armbruster, Esq. (via telephone); and interested citizens. 1. Modifications to Agenda: Brad Cramer indicated that item #7, Request for Funds to Improve Civitan Plaza needs to be removed as Parks and Recreation is not ready to present that item. 2. Minutes November 15, 2018: Kirk Larsen moved to approve the minutes for November 15, 2018, Thomas Hally seconded the motion and it passed unanimously. 3. Approval of Expenditures and Financial Report. Cramer reported that Mark Hagedorn was not currently available and was unsure if he would make it to the meeting with the Financial Report. 4. Agreement with IFDDC for Downtown intersection improvements. Armbruster stated that the sequencing of payments needs to be altered, and there is a request for the Agency to commit to pay for the ordering of the trees for landscaping. Cramer explained that the understanding was that as the intersections are built 2 corners at a time, and when the 2 corners were complete, they would be reimbursed, and they can move to the next two corners. Cramer indicated that there is a request to pre-order the trees as a cost saving measure. Catherine Smith, IFDDC. Smith indicated that trees are dug in the Spring and the Fall and in order to have all the trees they need they need to place the order soon, so they don’t have to wait for the spring dig to order the 47 trees. Smith stated that the landscaper has suggested putting a deposit down on the trees, so they can pre-order. Smith explained the trees are from Oregon and 47 trees at $500/each = $23,500 and they want a ½ deposit ($11,750), to order the trees and they will be held at the landscapers (Dave Lawrence, Lawrence Landscaping) yard ready for the intersections, and as the trees are installed the balance owing for the trees being installed will be paid as the intersections are completed. Thompson indicated he understood there was a cost saving measure if the landscaping and irrigation equipment could be committed to this year. Smith indicted that they are anticipating a 10% increase in cost for the pavers, with the total cost going from $80,000 to $88,000. Smith indicated that Dave Lawrence believed he could work with the paver provider and see if they commit to ordering if they can work through the price increase and possibly have a smaller price increase. Armbruster stated that a motion is needed to change the Agreement with the changes for the payment sequencing and the pre-order of the trees is approved. Thompson moved to amend the Agreement previously agreed to in October, to authorize the payment of ½ of landscape materials (trees) that are pre-ordered for cost savings, Hally seconded the motion and it passed unanimously. 1 Idaho Falls Redevelopment Agency December 20, 2018. 5. Agreement with Idaho Falls Public Works for Assistance with Broadway Streetscape Improvements. Armbruster stated that they received comments back from City Public Works and the comments were technical in nature. Armbruster stated that they are trying to avoid several change orders because this is not a City project and so any change order would be paid by the Agency, and the commitment is intended to be a not to exceed figure. Armbruster stated that Public Works is willing to cap their fees to a number that would equal 15% of the contract amount, and hopefully they can get to limited change orders. Cramer stated that they would like the agreement to include very specific language regarding a guaranteed maximum price built within the agreement and overages would be on the contractor’s end, not the Agency or City. Lee Radford stated that he wants it designed on a conservative level so there are not overages, and it shouldn’t be designed to 100% so if there are change orders they can be dealt with. Radford stated that if the bids come in too high, they will have to reevaluate. Hally stated that the stricter the bid on the exact, the higher the bid will be because the contractor will be mediating risk, and change order flexibility will be needed, because there is never a major project that doesn’t have something happen that will cause cost increases. Larsen clarified that if the bids come in that are inconsistent is there time to modify what the Agency is asking for. Armbruster stated that if the Agency isn’t willing to accept the proposal from the contractor you can always reject and redesign. Armbruster stated that they need a sum certain in writing and spend as much, if not all, by the September 30, 2019 deadline. 6. Approval of Engagement Letter with Rudd and Company for Annual Audit. Lee Radford indicated that this is an engagement letter for a not to exceed price of $7500 for the audit of the fiscal year 2018. Radford indicated that the City has changed auditors, and this is the wrong year for the Agency to change with the closing out of the District. Kirk Larsen moved to approve the Engagement Letter with Rudd and Company for the Annual Audit for Fiscal Year 2018, Terri Gazdik seconded the motion and it passed unanimously. 8. Execution of Note with Eagle Ridge Development, LLC. Cramer stated that Eagle Ridge developers have completed the public improvements they committed to in the OPA and they are ready to work towards the execution of the note. Cramer has reviewed the submitted invoices and there are a few things that will be pulled out due to eligibility requirements. Cramer stated that they can begin working towards the note and they came in below the original budget that was approved. Cramer stated that the original OPA approved a maximum of $1.7 million and the final costs were closer to $1.4 million. Cramer indicated that there are developers interested in the land and some of the available funds to help. Lee Radford clarified that the costs were incurred a few years ago 2015/2016. Cramer agreed and indicated that this is construction of Utah Avenue to Pioneer and the intersection at the Western end of the road. Armbruster stated that the agreement is 4 years old and the developer advanced costs for the Agency to get through the planning process and Cramer has been able to find verification that they sent a check in the amount of $20,000 for those planning costs. Armbruster stated that piece of the reimbursement is handled differently than the infrastructure improvements. Armbruster stated that if there is a way to pay 2 Idaho Falls Redevelopment Agency December 20, 2018. off the pre-plan costs that will save the problem of having to issue a small note for those costs that would bear interest at 4.5% and the infrastructure cost has no interest component at all. Armbruster stated that they will pay 85% of the increment received each payment in January and July of each calendar year until the $1.4 is paid off. Thompson asked if there is $20,000 available. Cramer stated that there might be $20,000 in the account. Thompson indicated that the $20,000 could be paid shortly. Gazdik indicated that this item cannot have action taken because it is listed as a Discussion Item. 9. Parking Management Agreement with Oppenheimer and closing on The Broadway Plaza and Garage. Brent Thompson asked about the extra costs regarding the elevator for $75,000. Cramer indicated he doesn’t recall the note from McAlvain regarding that issue. Cramer indicated that the Parking Management Agreement issue is that within the Purchase and Sale Agreement for the Plaza and Garage, there was reference to a parking management agreement that stipulates that Oppeneheimer will manage the parking garage, but it references another document that was supposed to spell out the details. Cramer stated that neither party is prepared with the details and it needs to circle in with the City and make sure that it contains what the City wants too because the property will likely be turned over to the City for management. Cramer stated that they are close to wanting to close and prior to closing they want the document in place so there are no questions about how the garage will be managed. Cramer stated that the Purchase and Sale Agreement indicates that the Agency will purchase the Plaza and Garage once there is a certificate of occupancy and they do have now, but there are some unfinished elements, including parking lot striping and the plaza needs to be finished. Cramer indicated that some of the plaza work cannot be finished until spring. Cramer stated that there is a question about closing with unfinished elements. Thompson asked when they will complete the parking garage. Cramer stated that it is technically done. Thompson indicated that it is not open to the public. Larsen suggested escrowing funds at closing for the spring time costs. Armbruster agreed with Larsen and indicated that they would get a rough estimate and hold that amount of the purchase price back to create an escrow instruction letter and then it can be dealt with in the spring when final work can be completed. Cramer indicated that they Agency owes $1.3 million on the project to purchase the property and the goal is to be ready to do that by January 17, 2019 and have the City ready to accept the property by the end of the January. Thompson was concerned about having an auditable cost that the City can review. Cramer stated that they would look at the costs and it might take a few weeks to go through the final costs. Thompson asked if the audit needs to be done before they can get everything but the escrow amount. Cramer stated that he can ask for the costs, so he can start reviewing them now in preparation for closing. Thompson stated that one of the costs he is concerned with is there was an extra garage support and part of that is attributable to the main building itself, so the Agency isn’t liable for that, but there is some sort of extra cost for the garage and the costs need to be split out as well as examining other costs. Cramer indicated that they did pay an engineer to review the extra cost and Cramer will review the minutes to see how they decided to handle that cost breakdown. 3 Idaho Falls Redevelopment Agency December 20, 2018. Thompson indicated that he has no problem with holding money in escrow for work to be completed in the spring or when weather permits and subject to audit, paying the balance as agreed upon to Oppenheimers. Armbruster stated that he and Cramer will move forward with putting together an escrow instruction letter and move forward to the Purchase and Sale Closing of the Garage and Plaza and work on the parking management agreement and the other agreement that spells out more details on how the parking is operated. Thompson indicated that he would be willing to be involved in a meeting with the City pertaining to parking. Next Regular Meeting: January 17, 2019 Thomas Hally moved to adjourn the meeting, Brent Thompson seconded the motion and it passed unanimously. Respectfully Submitted: Beckie Thompson 4 Idaho Falls Redevelopment Agency December 20, 2018.