Idaho Falls Redevelopment Agency

IDAHO FALLS REDEVELOPMENT AGENC Y P.O. BOX 50220 IDAHO FALLS, ID 83405 November 18, 2021 Regular Meeting Minutes Council Chambers Call to Order: Lee Radford called the meeting to order at 12:00. Members Present: Lee Radford, Thomas Halley, Terri Gazdik, Brent Thompson, Chris Harvey (Via WebEx), Kirk Larsen (via Webex) Members Absent: Jon Walker Also Present: Brad Cramer; Ryan Armbruster Esq. (via Webex,), Meghan Conrad, Esq. (via Webex) Abbey Germaine, Esq. (via Webex); and interested citizens. 1. Modification to Agenda. None. 2. Approval of Minutes October 21, 2021. Armbruster had typographical errors requested to be fixed. Thompson moved to approve the Minutes with modifications for October 21, 2021, Thomas Halley seconded the motion and the motion passed unanimously. 3. Approval of Expenditures and Finance Report. Lee Radford presented the Finance Report dated November 18, 2021. In the River Commons Fund: Rebecca Thompson $87.50 for transcription; Elam and Burke $1,135.20 for legal. Kirk Larsen moved to approve the Finance Report dated November 18, 2021, Thomas Halley seconded the motion. The Motion passed unanimously. 4. Approval of Engagement Letter with Rudd and Company for Financial Audit. Mark Hagedorn stated that the City went out to bid on its financial audit services, and the company (Ide Bailey) was asked to give a quote on the Redevelopment Association and the quote was almost double than what was expected, and Hagedorn doesn’t feel it is warranted to have the price double, so they decided to stay with Rudd and Company. Radford indicated that they had discussed switching auditors when the City switched periodically, but the bid was higher than anticipated and Radford consulted with Gazdik and after a bid from Rudd and Company that was substantially lower (Rudd and Company = $6,750 – Ide Bailey = $12,000) they feel it is good to stay with Rudd and Company. Gazdik added that the Agency has diminished involvement in the various Districts currently, the overall financial activity is lessened and so they had expected that the fee would go down, and Ide Bailey’s bid did include travel cost, so it was substantially higher. Radford agrees that the number of transactions has been reduced and there is not a need to incur a higher bill. Hagedorn indicated that they have already proceeded and so this is basically a ratification, as they need a signed approval. 1 Idaho Falls Redevelopment Agency November 18, 2021. Terri Gazdik moved to ratify the approval and approve the Engagement Letter to Rudd and Company, Thompson seconded the motion. The motion passed unanimously. 5. MOU with Ryan Weimer for City Heights Urban Renewal District. Cramer stated that this is the beginning to create an urban renewal district that will be named The City Heights Project. Cramer showed on the aerial map the proposed boundaries that include the entire alley behind the old Melina’s building, the property, the right of way along the block on 1st Street and Lee. Cramer explained that the right of way is included because there are some potential improvements at the intersections that could be done, and they didn’t want to limit the ability of the Agency to participate and expend funds on the rights of way. Cramer explained that the MOU would authorize the consultant Renee Magee to work on the eligibility report, as well as Elam and Burke to work on it. Cramer showed on item 5 page 3 there is a requirement for the developer to supply $2500 in funding to get the projects going, and assuming the eligibility report comes back that a district can be created, then there is a second portion where the developer would supply $20,000 to proceed with the creation of the plan ($10,000 up front - $10,000 later.) Cramer pointed out item 8 on page 4 which includes that the Agency will match the contributions of the developer up to $25,000. Armbruster indicated that this MOU has come out of a work session that Cramer and Armbruster attended with the developer, representative, and Renee Magee, and they feel that this MOU incorporates the items discussed at the work session. Armbruster stated that the boundaries shown on the map are proposed boundaries and ultimately those might be reduced. Armbruster stated that they wanted to start broad at the outset and as the process continues to evolve, they can reduce the boundaries if they desire. Armbruster stated that the Agency is contributing on a pro-rata basis with the developer (dollar for dollar), and based on the anticipated workflow, the combined resources of the developer and Agency should meet the cost of putting the District together. Thompson asked how the boundaries interface with he proposed lane change that the City was going to do on the north bound lane of Northgate Mile. Cramer stated that the proposed plan was to put an extended left hand turn where traffic would cross and it would potentially involve moving the small triangle building and cutting across parking lots, and when the plans were proposed it was assumed that the Agency would be able to pick up options on the other buildings and those buildings sold, so this doesn’t anticipate the full intersection change, but it does include the intersection of 1st and Northgate Mile if there are upgrades needed to provide better access to 1st Street. Radford reminded the Board that the money to help this developer is coming from the funds that City Council reserved for the Agency ($200,000) from the distribution the Agency returned last year. Armbruster stated that they have looked back at the agreement between the City and the Agency, and the agreement does allow the Agency to use the monies for purposes of paying for the cost of consultants and others to prepare an Urban Renewal Plan, so it is an appropriate use of funds moving forward. Radford asked if they have confirmed that this developer owns the property and has an LLC. Cramer indicated that the LLC name was provided by the developer who is the owner of the property. Radford feels these smaller districts will help with infill projects that are around town and if this is a successful model, they could encourage more dense urban development. Kirk Larsen moved to approve the execution of the MOU with City Heights, Thomas Halley seconded the motion. The Motion passed unanimously. 2 Idaho Falls Redevelopment Agency November 18, 2021. 6. MOU with Derek Ence for Pancheri- East Bank Urban Renewal District. Cramer showed the former Pancheri Yellowstone Boundary and indicted that this District would be within that old District. Cramer showed the proposed project area, including the Old King B Jerky Plant existed. Cramer indicated that they will be demolishing the building and build a new hotel. Cramer stated that they cannot create a new District with the same boundaries of an old District. Cramer stated that the boundaries will be fluid as they move through the process of creating the District and they are trying to protect potential access points to Yellowstone, and the most ideal access point is to come further south on Yellowstone, and they would have to work with another property owner. Cramer stated that the access point that is straight east of the property has some potential issues and would require engagement with other property owners. Cramer stated that they are trying to meet the needs of the new District without creating the old Pancheri-Yellowstone District. Cramer stated that the agreement is very similar to the previous agreement with City Heights with the difference being the amounts due to the Agency not being able to contribute to this project like it can with City Heights. Cramer stated that this will begin the process of an eligibility report and anticipates leading to an Urban Renewal Plan that would be approved by this Board and City Council. Armbruster stated that the boundaries will be fluid and this MOU anticipates questions that will arise about the previous Pancheri-Yellowstone area. Derek Ence stated that they created Sentinel Properties more than a decade ago to hold various properties and it owns the land and the building on this property, as well as Ball Packing cold storage building that is leased out to an ice manufacturer. Ence stated that they intend to demolish the King B Plan and develop a hotel on the site along with the Hansen Family. Ence has looked at the agreement and is in agreement with the terms and understands his obligations. Radford asked if they have started the discussions with the other property owners to participate. Ence stated that they have not discussed it with the owners yet and they have talked about how to approach the property owners. Ence stated that the only obstacle they see is the parcel to the south that is owned by another owner, and they would have to discuss with them and see if they can get them on board. Ence stated that they feel that Cramer will be the best person to approach that property owner on behalf of the City. Radford asked if they would have to create city standard streets. Cramer stated that if they have access to the south yes, they would, but if it goes north, it would be more of a modified access point. Brent Thompson moved to approve the MOU with Sentinel Properties for the Pancheri-East Bank Urban Renewal District, Terri Gazdik seconded the motion. The Motion passed unanimously. 7. Request for Extension for Dr. Lee Project. Dr. Brian Lee. Lee stated that they were able to get a grant from the Agency for lava blasting and rock removal, and they have used those funds and the building is progressing, but because of many factors they have needed to extend deadlines. Lee stated that last May he partnered with Dr. Dan Marshall (Dermatologist), and this is now a joint project. Lee stated that the building is progressing, but it is taking longer than anticipated due to supply chain problems, worker shortages, etc. Lee stated that the exterior of the building is 95% complete, the second level is painted and getting ready to put in cabinets and flooring and the main level is behind the second. Lee stated that they have an estimated completion date in a few months. Lee stated that they had an extension on an original deadline that was extended to the end of the year, and they are now requesting another extension to March 31 to make sure that they don’t have to ask again. Radford asked if they are planning on occupancy in January or February. Lee stated that the upper level is trying to get occupancy then, but the main level is behind that. Radford confirmed that Dr. Marshall 3 Idaho Falls Redevelopment Agency November 18, 2021. will have the second floor. Lee stated that he has a lot of medical MedGas piping and that was hard to get fixtures for that, and a lot of the drywall had to be delayed getting the MedGas fixtures in. Radford indicated that they have to keep the County apprised because the District ended 2 years ago. Radford does appreciate the building that is being built and it will be worth the patience. Radford knows the building is going to get done, but the Agency is accountable to the taxpayers. Radford stated that currently the agreement is they have to have a CO by the end of the year. Radford asked if they are asking for a certain fixed date. Cramer stated that Dr. Lee is requesting a date certain. Dr. Lee stated that the fixed dates have been helpful for goals, but sometimes things are out of their hands, and they just can’t get the materials. Radford stated that the risk to the Agency was that they would invest in the building, and it wouldn’t be completed in a way that wouldn’t pay property taxes, but clearly this building is going to be completed and put in operation to start paying for what Dr. Lee has invested. Cramer stated that the Agency needs to consider that in order to get a CO (not just temporary) they need to push farther than March 31st because the City requires landscaping and parking lots done before they issue CO and if the landscaping is not done, it won’t be done by the end of March with winters the way they are in Idaho. Cramer suggested pushing out until June. Gazdik agreed and thought June 30th would be a better date to give them the opportunity to get into the building. Thompson asked about the criteria for temporary CO. Cramer stated that if they have passed all the other inspections other than the zoning inspection for landscaping, they can have a temporary CO. Radford stated that this building will start generating property taxes in 2022 and the risk to the Agency and the taxpayers has passed. Radford doesn’t feel that they need to be too tight. Dr. Lee is anxious to get into the building and see patients, as well as Dr. Marshall. Dr. Lee wants to get in as soon as possible. Thomas Halley moved to extend the project to June 30, 2022 for Dr. Lee to obtain a Certificate of Occupancy, Terri Gazdik seconded the motion. The motion passed unanimously. 8. RAI/Legislative Updates. Armbruster stated that the Redevelopment Association Board will be meeting later today to address issues and try to outline what 2022 might have in store for them on the Legislative front. Armbruster stated that the reconvened Legislator came into town on Monday and despite the fact that there were 29 Bills offered, no Bill went through the whole process. There were a few Bills approved by the House, but the Senate rejected the Bills or didn’t take them at all. Armbruster stated that the only thing that came out of the session was a joint memorial between the House and the Senate expressing the Legislators opposition to the Federal Administration Vaccine Mandate. Armbruster stated that the Property Tax Interim Committee was scheduled to meet tomorrow, but that has been cancelled, and they may or may not meet again before Legislature reconvenes the 1st part of January. Halley asked Armbruster if he will be at the AIC Legislative on December 3rd. Armbruster will be in attendance, and he will go in and register for that session. Radford stated that they have been asked for their input for the Idaho Falls Chamber of Commerce Annual Legislative Priorities for redevelopment agencies. Radford has asked RAI and Armbruster to give a one sentence of what they feel they need to advocate for to have the best processes for urban renewal and tax increment financing, and Armbruster will get back to Radford so he can give his input to the Chamber and to the local Legislators. 4 Idaho Falls Redevelopment Agency November 18, 2021. Radford asked if the Eligibility Reports will be done by December 20th. Cramer feels that they will be done in January, so they might be able to cancel the December meeting. Next Regular Meeting: December 20, 2021. Thomas Halley moved to adjourn the meeting, Brent Thompson seconded the motion and it passed unanimously. Radford adjourned the meeting at 12:45 p.m. Respectfully Submitted: Beckie Thompson 5 Idaho Falls Redevelopment Agency November 18, 2021.