Idaho Falls Redevelopment Agency

IDAHO FALLS REDEVELOPMENT AGENC Y P.O. BOX 50220 IDAHO FALLS, ID 83405 August 19, 2021 Regular Meeting Minutes Council Chambers Call to Order: Lee Radford called the meeting to order at 12:00. Members Present: Lee Radford, Terri Gazdik, Brent Thompson, Chris Harvey (Via WebEx), Kirk Larsen (via Webex) Members Absent: Thomas Halley Also Present: Brad Cramer; Ryan Armbruster Esq. (via Webex); and interested citizens. 1. Modification to Agenda. None. 2. Approval of Minutes July 15, 2021. Ryan Armbruster had some modifications to be made to the Minutes. Brent Thompson moved to approve the Minutes for July 15, 2021 with the changes requested, Kirk Larsen seconded the motion and the motion passed unanimously. 3. Approval of Expenditures and Finance Report. Lee Radford presented the Finance Report dated August 19, 2021. In the River Commons Fund: Rebecca Thompson $62.50 for transcription; Elam and Burke $1,615.50 for legal; Ball Ventures $376,725.81 for OPA payment; Bandon River $9,099.95 for OPA payment. In the Eagle Ridge Development Fund: Eagle Ridge $8,096.20 for OPA payment. In Jackson Hole Junction Fund: Jackson Hole Junction $65,305.72 for OPA payment. Mark Hagedorn commented on the Jackson Hole Junction that the OPA payment caused the fund to be over budget, as they had only estimated that Jackson Hole Junction Fund would bring in about $50,000 and $60,000 was budgeted for the accumulation. Hagedorn stated that this year they received over $100,000 which caused the OPA payment to be higher which caused the fund to be over budget. Hagedorn indicated that he would discuss the remedy for the over budget issue with Armbruster. Hagedorn explained that in City Government they would transfer funds to maintain a budget balance, but he is unsure if that is an acceptable practice with Urban Renewal Districts. Radford clarified that the Fund received more income than what was expected so you have to pay more in the OPA payment. Hagedorn agreed and indicated that the previous year had zero collected and this is the first year to collect and pay out, so it is higher. Gazdik asked if since the fund has sufficient funds if they can just amend the budget. Hagedorn stated that he would not advocate for an amended budget, it would just be a budget adjustment within the Districts, however Hagedorn will discuss the options with Armbruster. Terri Gazdik moved to approve the Finance Report dated August 19, 2021, Brent Thompson seconded the motion. The Motion passed unanimously. 4. Approval of the Budget Resolution for FY 2022 Idaho Falls Redevelopment Agency. Armbruster indicated that this is the time and place as noticed in the publication for the public hearing on the proposed FY 2022 budget. Armbruster stated that it is appropriate for anyone who is in attendance to appear and testify concerning the proposed budget, as well as any written comment that has been received by the Agency since the date of the publication. Radford opened the public hearing. 1 Idaho Falls Redevelopment Agency August 19, 2021. No public appeared to provide testimony. Thompson asked if the small expenses on 1st Street need to be shown. Hagedorn stated that those expenses have been allocated to River Commons Fund and they did not create a separate District/Fund for the 1st Street items. Radford agreed and stated that the Idaho Falls Redevelopment Agency keeps things allocated to actual funds, but it is an Agency effort on 1st Street. Cramer indicated that no written comment was received. Gazdik asked if I all funds they are expending more than what they are projecting revenues. Hagedorn stated that in all funds they budget the expenditures to equal the projected cash balance and the projected revenues to maximize the ability to have flexibility and options. No one appeared on Webex. Radford closed the public hearing. Armbruster read the Resolution by Title. A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE IDAHO FALLS REDEVELOPMENT AGENCY OF IDAHO FALLS, IDAHO, TO BE TERMED THE “ANNUAL APPROPRIATION RESOLUTION,” APPROPRIATING SUMS OF MONEY AUTHORIZED BY LAW AND DEEMED NECESSARY TO DEFRAY ALL EXPENSES AND LIABILITY OF THE URBAN RENEWAL AGENCY, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2021, AND ENDING SEPTEMBER 30, 2022, FOR ALL GENERAL, SPECIAL AND CORPORATE PURPOSES; DIRECTING THE CHAIR OR EXECUTIVE DIRECTOR TO SUBMIT THE RESOLUTION AND BUDGET TO THE CITY OF IDAHO FALLS AND ANY OTHER ENTITY ENTITLED TO A COPY OF THE RESOLUTION AND BUDGET; AND PROVIDING AN EFFECTIVE DATE. Brent Thompson moved to approve the FY 2022 Budget Resolution, Terri Gazdik seconded the motion. Radford called for Roll Call Vote: Harvey, yes; Larsen, yes; Gazdik, yes; Thompson, yes; Radford, yes. The motion passed unanimously. 5. Northgate/1st Street Project Updates. Cramer presented that they are continuing to work with the new owner of the Malina’s building. Cramer met this morning with the sub-committee and the next step would be to approach the owner with the template that was created for an Eligibility Report to see if they are willing to go through the process. Cramer stated that the template makes it simple when combined with the Stantec Plan. Cramer asked Stantec to go through each of the Urban Renewal Criteria and identify whether or not the area in general met it, and then it could be narrowed down to that site. Cramer stated that if they are willing to go through the RFP it would be fairly simple, however it pushes the Agency to work with the new owner to find out what they are wanting in terms of assistance, and what those costs look like and start to develop a revenue project as they move forward, and the specific properties they are interested in need to be identified. Radford asked if the new owner was able to close and obtain Title. Cramer stated that as far as he understands, but he is still trying to track down all details. Thompson reported that one of the things that needs to be asked of the potential developer is what kind of involvement they might want to look at with other available properties including the Chinese Restaurant and the Thrift Shop on the corner of Lomax. Thompson stated that they need to determine how the Agency will participate and it might be an OPA type of agreement. 2 Idaho Falls Redevelopment Agency August 19, 2021. Larsen stated that through an OPA process they could help reduce the cost of the property for the pharmacy building. Thompson stated that he has some information on the Sayer properties and design material. Thompson stated that he approached Kelly Sayer briefly and he indicated that he was interested in talking about it, but he hasn’t called Thompson back to discuss it. Thompson expects to see Sayer tomorrow and will present some of this conceptual information to him to see if it sparks some interest to discuss things. Thompson would assume that he would want to do something with these unused properties. Cramer asked staff to think about the question of whether the Agency would want to use of the unused EPA funds to do a feasibility report on the Sayer property. Cramer has instructed Stantec to hold off until there is support from the property owner and support from the Board. Thompson indicated that it is the logical thing to do if it does promote interest on Sayer’s part that either he in selling his property or a developer later on could have it as a tool to give to the developer to make it more feasible project for a developer and encourage purchase and redevelopment of the property by someone other than Sayer. Thompson feels spending those monies on a design concept seems to be a logical step. Larsen asked as they move forward with that concept, is it Kosher and wise to talk to Kelly Sayer to determine who or what types of projects have expressed interest in the property and use information. Thompson agreed to ask Sayer that question. 7. RAI/Legislative Updates. Armbruster stated that they have received notice that the Property Tax Interim Committee will meet next Friday, and the Agenda items have not been posted yet. Armbruster stated that one issue that has received media attention is a result of a trip that Senator Rice, Representative Addis and few County folks went to Nevada and are trying to learn about Nevada’s process in how it accesses residential property which they do on a replacement cost basis as opposed to fair market value. Armbruster is unsure how that would work in Idaho, and apparently there is an Attorney General Guidance letter out there that stated that if the Legislature did that by way of an exemption like a Homeowners Exemption it might pass Constitutional muster, but details are not yet available. Armbruster stated that if there is less money coming from one segment of the economy then other segments of the economy pick up the difference, so it will be interesting to see how industrial and commercial property owners will react to a shift when residential property owners are paying less than their “fair” share. Radford confirmed that the theory is that the replacement cost would be less than fair market value. Armbruster agreed, and stated that it doesn’t work all the time, especially in this climate. Next Regular Meeting: TBD Terri Gazdik moved to adjourn the meeting, Brent Thompson seconded the motion and it passed unanimously. Radford adjourned the meeting at 12:20 p.m. Respectfully Submitted: Beckie Thompson 3 Idaho Falls Redevelopment Agency August 19, 2021.