Idaho Falls Redevelopment Agency

IDAHO FALLS REDEVELOPMENT AGENC Y P.O. BOX 50220 IDAHO FALLS, ID 83405 December 19, 2019 Regular Meeting Minutes Council Chambers Call to Order: Lee Radford called the meeting to order at 12:00. Members Present: Lee Radford, Kirk Larsen, Thomas Halley, Brent Thompson Members Absent: Teri Gazdik, Dave Radford, Chris Harvey Also Present: Brad Cramer; Ryan Armbruster Esq. (via telephone); and interested citizens. 1. Modifications to Agenda: None. 2. Minutes October 17,2019: Kirk Larsen moved to approve the minutes for October 17, 2019, Brent Thompson seconded the motion and it passed unanimously 3. Approval of Expenditures and Financial Report. Lee Radford presented the Finance Report dated December 19, 2019. The following bills were presented to be paid from the River Commons Revenue Allocation Fund: Rebecca Thompson, $50.00 for transcription of Minutes; Elam and Burke $841.20 for legal. The Following Bills was presented to be paid from the Pancheri Yellowstone Revenue Allocation Fund: Elam and Burke $340.00 for legal. The Following Bill was presented to be paid from the Eagle Ridge Revenue Allocation Fund: Elam and Burke, $88.10 for legal. The Following bill was presented to be paid from the Jackson Hole Junction Revenue Allocation Fund: Elam and Burke, $84.20 for legal services. Thomas Halley moved to approve the Financial Report dated December 19, 2019, Kirk Larsen seconded the motion and it passed unanimously. 4. Yellowstone Streetscape Upgrades. Cramer indicated that they had been working with Matt Berry, Loran Walker and Mr. Burggraaf to widen the sidewalk, install landscaping and streetlights. Cramer stated that Berry wanted wider driveways than what would be allowed and ITD would not approve the access that Berry requested and did not commit to the 50’ wide sidewalks. Cramer stated that Public Works provided a new design that provided a turn radius that would allow trucks to turn in and out easier without running over landscaping but still had a 40’ wide access and the owners were not interested in participating. Cramer stated that the project will likely happen in some form because it is a high priority project for the City due to the safety concerns with the Homeless Shelters and the lack of places for people to walk. Cramer stated that the City will continue to look for funding to do the projects and at that time the access points will narrow and the project will be done without the landscaping and the Berrys have indicated that is their preference is to wait for that to happen. Cramer indicated that the City would be interested in having the Agency participate in some way, but the feelings from the Board have been that without the landscaping and the beautification that there is no interest. Radford asked if it makes any sense to participate with the other property owners and not the Berry property. Radford indicated that Berry property is the best in its current status for pedestrians and the other two properties are more difficult. Cramer stated that the Burggraaf’s were doing it contingent on Berry and Walkers and he senses that if everyone is not involved then it would not work. Cramer asked if the Board is interested in pouring a sidewalk with the City to improve the safety of the area. Thompson 1 Idaho Falls Redevelopment Agency December 19, 2019. asked if that is the roll of the Agency or are, they supposed to be looking for projects that create growth. Larsen agreed. Thompson stated that all but the Burggraaf property are approved and people don’t normally tear down buildings unless there is a real strong direction of change, and it would seem that all the buildings are likely going to stay for some period of time and so the only thing that would be accomplished would be some incentives for Burggraaf’s to develop, and is that enough to justify favoring the project. Larsen agreed and stated that sidewalks are valuable, but they don’t push toward the concept of enhancing economic development in the area. Radford asked about the timing of the District. Radford stated that if there is an important project that can be done to enhance the economic value to help the property taxpayers, but if nothing comes up then the money should just be returned to the City and County. Radford indicated that they should continue to remind them that this is a one-time opportunity. Armbruster indicated that they will be following the same schedule for the Snake River Termination so in early 2020 they will advise the taxing entities and Tax Commission that they intend to close out the District and will do the paper work necessary by mid-2020 and they need to keep the eye on the ball to avoid coming down to the wire in terms of expending funds before September 30, 2020. 5. Eagle Ridge Note. Cramer explained that the Eagle Ridge property owners have requested that the Agency execute the Promissory Note. Cramer stated that the agreement as once they built the improvements and infrastructure along (Crane Ave.) Utah and then extend Snake River Parkway to connect to Pioneer Drive. Cramer showed 2008 aerial that shows no improvements and then a 2016 aerial that does show the improvements. Cramer has reviewed the invoices and they are all clear. Cramer showed a summary of the invoices. Cramer had a question on the Rocky Mountain Power invoice and was unsure if it was an eligible cost. Cramer stated that it was a relocation of a power line in the area so they can widen the road. Cramer stated that the invoices are well below the maximum allowed in the OPA and Cramer is asking for authorization to fill in the blanks of the promissory note, circulate for signature and start getting reimbursements. Radford asked about the line item of $20,000 to the Redevelopment Agency. Cramer stated that there was some advance made for the creation of the Plan and District that has been repaid and the funds came from the Snake River District. Cramer explained that the Snake River District had an excess of funds so it lent money to Eagle Ridge District to cover the cost of creating the District and Plan and the agreement points out that they have to pay that money back with interest to the Snake River District, which has already happened. Armbruster indicated that they had an MOU and it appears that they did provide $20,000 of planning cost out of their own pocket and the Agency was to pay that back, and it has been paid back and the $20,000 is not an eligible expense on this list as it has already been paid. Armbruster stated that they are good to go with the Note to repay the developer over time for the $1.5 million. Larsen asked about the Rocky Mountain Power cost. Radford believes the cost is eligible as the power lines needed to be moved for the project. Cramer stated that he wanted to double check as it wasn’t something he’d seen for other projects. Thompson believes there was some relocation of utility lines for the motorcycle shop. Halley asked if there will be a buyout of Rocky Mountain with Idaho Falls Power. Cramer indicated that if it is requested, but he is unaware of any current requests. 2 Idaho Falls Redevelopment Agency December 19, 2019. Thompson indicated that there is $72,000 in the account. Thompson asked when the reimbursements start. Cramer stated that the reimbursements start once the note is executed and they receive 85% of the revenues received with no interest. Armbruster clarified that this one still has a note as an exhibit to the Agreement. Armbruster clarified that the note states they will pay 85% of in the increment received beginning after the effective date of the note, so the payment in January for the project area will be remitted (85%) to the developer. Armbruster stated that they will fill in the blanks with the correct numbers. Kirk Larsen moved to approve the Limited Recourse Promissory Note with the numbers adjusted minus the $20,000 owed to Idaho Falls Redevelopment Agency and allowing the eligibility of the Rocky Mountain Power amount of $24,868.00, Brent Thompson seconded the motion and it passed unanimously. 6. Project Updates. Cramer stated that they are coming up on the deadline for Dr. Lee to provide proof of ownership on the property in Taylor Crossing. Cramer indicated that there is a closing scheduled for tomorrow (Dec. 20), and then all the rock will need to be blasted by the end of June 2020. Cramer stated that the Broadway had $107,000 held in Escrow until final items were completed. Cramer inspected the property after the funds were requested. Cramer found all the items to have been completed and the funds have been released. Thompson asked about promotion to the public about the availability of the parking garage. Cramer stated that the City passed an agreement to let the Oppenheimers manage the parking garage until the warranty has expired, and then likely it will transfer to the IFDDC who does a good job promoting Downtown parking. Radford agreed there is plenty of parking that is not being used. Radford stated that they are working out some kinks with the parking and that needs fixed before they invite a lot of people in. Radford asked Cramer to speak to Catherine about that promotion. Thompson asked about how the parking works after hours. Cramer stated that the leased stalls are guaranteed from 7 a.m. – 6 p.m. and then after that you have to pay to park, but all stalls are available after 6 p.m. and on weekends. Cramer stated that he did talk with Jeremy Malone and the revenue on the parking will go to Oppenheimers instead of the City as they intend to purchase some signs and equipment as they get revenue from the leases. 7. Bonneville Hotel Grand Opening. Radford has met with the Mayor and Dana Briggs and the Museum of Idaho and Bonneville County Historical Society to figure out how to do the opening. Cramer indicated that the Grand opening will be either January 30 or February 5 or 6. Cramer indicated that the marketing group for the investors funding the project would like to combine their efforts and invite the Governor and make a big deal and Cramer will have the posters and open house for public to walk through. Radford stated that in order to promote Downtown living the idea is to have an open house where people can walk through the Bonneville and see the apartments. Radford stated that the Museum and Bonneville County Historical Society are helping with posters to present what the Bonneville means to Idaho Falls. Radford is doing a poster about the history of the financing. Thompson asked if there is any progress on leasing the commercial spaces. Cramer stated that there is interest, but nothing has been signed. 8. RAI Update. Armbruster stated that RAI Board will meet today to discuss the status of potential legislation. RAI may consider hiring a contract lobbyist on a session basis to help. Armbruster anticipates that by virtue of the property tax group working meetings there will be some legislation that will impact property tax revenues which will directly impact urban renewal agencies. Armbruster stated that there was an appeal filed in Ada County by the Idaho Freedom Foundation challenging the most recent approvals by Boise City of two Urban Renewal Plans, alleging that the plan creates a contractual 3 Idaho Falls Redevelopment Agency December 19, 2019. obligation of the City through the 20 year life cycle of the plan and therefore violates the Constitution. Armbruster stated that there may be a request that RAI serve as a friend of the Court as the case goes through the Supreme Court. Armbruster stated that the early part of the session will deal with rules and the session starts on January 6. Next Regular Meeting: January 16, 2020 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 December 19, 2019.