Idaho Falls Redevelopment Agency

IDAHO FALLS REDEVELOPMENT AGENC Y P.O. BOX 50220 IDAHO FALLS, ID 83405 January 27, 2022 Regular Meeting Minutes Council Chambers Call to Order: Lee Radford called the meeting to order at 12:10. Members Present: Lee Radford, Brent Thompson, Chris Harvey (Via WebEx), Kirk Larsen (via Webex) Members Absent: Jon Walker, Thomas Halley, Terri Gazdik Also Present: Brad Cramer; Ryan Armbruster Esq. (via Webex,), Abigail Germaine, Esq. (via Webex); and interested citizens. 1. Modification to Agenda. Item #3 will not be addressed (Finance Report) because Mark Hagedorn is out of the Country and unable to prepare the Finance Report. 2. Approval of Minutes November 18, 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. None. 4. Resolution Accepting Pancheri-East Bank Eligibility Report. Cramer introduced the Eligibility report for the proposed Pancheri-East Bank Urban Renewal Area. Cramer stated that it would need to be adopted by Resolution. Renee Magee. Magee introduced herself as Brad Cramer’s predecessor and served from 1997 – 2016. Magee has completed 2 eligibility studies prior to this Study. Magee is currently the Administrator for the Dover Urban Renewal Agency (West of Sandpoint, Idaho). Magee stated that she did not visit Idaho Falls to do this study and had Kerry Beutler do the site visits for photos and contacted the City Departments. Beutler also reviewed the draft study. Caitlin Long completed the maps. Renee presented the purpose of an eligibility study is to determine if all or a portion of the 33 acres of this site will meet the criteria as outlined in the Idaho Statute for Urban Renewal. Magee showed a map with the study area outlined in red which encompasses almost all of the old Pancheri-Yellowstone Urban Renewal District. Magee indicated that the area includes 15 private parcels and 5 public parcels including the Idaho Falls Substation, right of way for Capital Avenue Extension, right of way for South Yellowstone Highway, and parcels for Riverwalk. Magee noted that this encompasses all of the old Pancheri-Yellowstone District, with the exception of Candlewood Suites and the Riverwalk immediately adjacent to Candlewood Suites. Magee listed 11 criteria for Urban Renewal Areas, leaving off 3 criteria that are listed in the law as she did not find diversity of ownership; did not research unusual condition of title; or tax delinquency. Magee indicated that the Agency needs to find one or more of these 11 criteria is found in the study area. Magee stated that historically access to the interior of this study area was difficult as there is no developed interior road pattern. Magee stated that the characteristics of the study area meet the criteria due to inadequate street layout, out moded street patterns and lack of correlation with other streets. Magee showed the proposed Idaho Falls Comprehensive Plan that would provide a solution to the issues of the 1 Idaho Falls Redevelopment Agency January 27, 2022 streets with a concept of extending Capital Avenue south through the study area all the way to Yellowstone Highway. Magee stated that some places in the study list 32 acres, but at the end of her research they added an acre immediately adjacent to the Snake River that encompasses the Riverwalk, because that portion of the Riverwalk is the right of way of the Capital Avenue Extended, and they wanted to ensure that it would be in the study area, so there is a difference within the study of 32 and 33 acres for that reason. Magee stated that the parcels are irregular in shape and most of the parcels have not been platted (13 of the 15 are not platted) and platting is a requirement of redevelopment. Magee indicated that there are no public easements for water or sewer and access is a problem in this area as the private driveways do not meet modern standards for width and spacing. Magee added that some of the lots lack the adequate depth for modern redevelopment. Magee indicated that the characteristics of the study area meet the criteria of a faulty lot layout in relationship to size, accessibility, adequacy, and usefulness. Magee indicated that the west side of Yellowstone Highway in this area has poor and deficient pedestrian facilities. There are no streetlights or sidewalks in the interior of the study area and the water main is not looped. Magee indicated that there are unsafe conditions in this study area. Magee stated that 4 of the buildings are over 65 years of age. Magee stated that it is too hard to redo an older building and the value of the land exceeds the value of improvements on over 60% of the private parcels. Magee stated that the largest building that was the former manufacturing facility for King B has been vacant for 6 years and many of the former industrial uses have closed and moved which resulted in a vacancy rate of over 60% of the acreage in the private parcels. Magee stated that this area is either vacant or underutilized. Magee indicated that the characteristics meet the criteria of age and economic underdevelopment, which underdevelopment substantially impairs the growth of Idaho Falls. Magee showed an aerial photo from 1992 and a photo from 2016. Magee showed in comparing the photos that the growth of vacant land from 1992-2016, and the only major investment in the area in that time as a construction of a cold storage facility south of Pancheri, but that cold storage that was constructed in 1996 is now 25 years old. Magee stated that there is no public easement for water and sewer utilities and therefore the water department and sewer department consider the utilities in the area to be private and there is little documentation of the age and condition of the utilities. Magee stated that the documentation that does exist shows the water main in the area is not looped, but rather dead ends in the southern center portion of the site, and the water main would not provide consistent water service and would not provide adequate fire protection. Magee again showed the proposed Idaho Falls Comprehensive Plan. Magee showed the two land use classifications consisting of a mixed-use corridor that would be adjacent to the Snake River and the other use is urban core which is adjacent to the intersection of Pancheri and Yellowstone. Magee stated that citizens look at this area of a potential place for people to eat, shop and gather, which would include mixed use buildings, pedestrian facilities, restaurants, hotels, apartments, offices. Magee stated that it will take substantial reinvestment to implement the City’s vision of area, including public and private investment. Magee stated that without that investment the characteristics of this area will continue to impair Idaho Falls. Magee concluded that this Study Area does meet one or more of the criteria in Idaho Statute for an Urban Renewal Area. Magee stated that this study area is eligible for an Urban Renewal Area. Magee added 2 Idaho Falls Redevelopment Agency January 27, 2022 that this finding does not commit the Agency or the City Council to include any or all portions of the study are in an urban renewal area, but that would be the next step in the process. Magee reiterated that the study area does not include Candlewood Suites and the adjacent Riverwalk. Beutler researched the approval drawings for Candlewood Suite, and it was determined that the tax increment assistance was only used in the past for Candlewood Suites and the immediately adjacent Riverwalk. Thompson asked that what could or should happen in this District seems to be oriented around the extension of Capital Avenue. Thompson asked about the section of future Capital Avenue that is not in the study area and as it transitions into the study area and questioned if the right of way is big enough to accommodate the extension of Capital, plus retain the walkway along the River. Magee showed that all of the right of way for Capital Avenue with one exception is included in the study area. Magee stated that there is an issue on the northern end because the right of way for Capital Ave is approximately 50’ wide by King B Plant. Beutler discussed this issue with Public Works and if the Agency has enough funds in the future to fund the construction of Capital Avenue Extended, Public Works will propose a cross section similar to what was used in Taylor Crossing next to the hotel which is a street layout similar to Memorial that has 24’ width with one parking lane and a sidewalk adjacent. Magee stated that the very northern tip is not in the study area, and it cannot be in an Urban Renewal Area because it was previously assisted, the City would have to step up to help with the expansion of that portion of Capital Ave. Radford asked if they should include the other parcel at the southern corner that is owned by Mora Properties and that would get some additional property next to the Capital right of way. Magee indicated that they did not research that and it is in private ownership, but they could go back and research that parcel. Magee stated that she felt that if they needed more right of way, they could acquire that right of way to the north. Radford stated that if you are doing sidewalks on the front, you’d want the extra width. Radford stated that one problem that he sees is that the current parcel for Capital is not where the street goes and is not likely where the street will go. Radford stated that it shows Capital, but Candlewood and the riverwalk are right there, so it would likely not go there, and this isn’t the correct pattern. Magee stated that they do not know the exact pattern. Magee stated that Public Works feels that if they use that location, it is good because of the signalization on the intersection and it would work better than other alternatives. Magee stated that with the Pancheri-Yellowstone district they had talked about a loop street through the area, but that was not successful with the staff, and Public Works would rather have an extension of Capital that moves along the Snake River and then curves to Yellowstone Highway because of the signalized intersection on Pancheri. Radford feels that can be addressed as the property develops. Magee feels it needs to be addressed in the plan. Cramer stated that the southeast parcel is something that should be discussed more. Cramer stated that the project along that right of way that almost happened, had an issue because they couldn’t spend any money to create the ADA Ramp on the other side of the intersection, and that was a barrier to that project. Cramer asked if the Board would be ok with Cramer and Beutler discussing with the Magee the addition of the parcel. Radford suggested also looking at the next parcel that is owned by Connie Pace. Radford wants to avoid going to the Amcor portion of Yellowstone. Radford stated that it will help the entrance and if that is a signalized intersection it is going to have to be substantial and it would benefit the property owners. Armbruster suggested that if they are going to look at the parcels to the south, they should not adopt the Eligibility Study yet. Armbruster feels that there is plenty of time to process the Urban Renewal Plan, because after the Agency approves the report, it goes to City Council for their approval, then they would draft the actual Urban Renewal Plan that goes back to the City Council and Planning and Zoning for a public hearing. Armbruster suggested having Cramer, Beutler and Magee look at the two southern 3 Idaho Falls Redevelopment Agency January 27, 2022 parcels and discuss it with the property owners and if they expand the boundaries, they can modify the report and then move forward. Radford asked if this delay would be too much for the developers needs. Cramer stated that he doesn’t have a good enough sense of what the developer’s time frame is to answer. Cramer stated that if they wait 3 weeks until the next meeting it might be ok. Radford asked what the other members think about waiting. Thompson agreed it is a good idea. Larsen agreed with Radford. Harvey is concerned about the time pressures of the project, but if they can wait 3 weeks to be able to consider the other parcel then it is ok. Cramer stated that if he worked with Armbruster to have the Resolution that the Council would need to adopt in process so that he can take it to Council quickly after the next Agency meeting and that would reduce some of the delay. Armbruster agreed that they can crank out a City Council Resolution quickly. Armbruster stated that Abigail Germain will create a timeline that gets them from this point to the end of the process. Armbruster stated that they can always have a special meeting. Cramer stated that right now if the Board approved the Resolution it is unlikely that he could get it in front of the City Council before the 4th Thursday in February, and this Board would meet before that meeting in their regularly scheduled meeting, and if there are no specific timelines for noticing, waiting till next month would not delay this movement at all, and he would be in front of Council on the same date. Radford feels that the consensus is it would be good to include those parcels. Radford asked if there are any concerns about eligibility. Larsen stated that he is not concerns of the eligibility but asked if there are issues with Magee not visiting the site. Armbruster stated that is not a problem as Beutler has been out there and she has aerial photos. Radford added that Magee has spent a lot of time on this property in the past. Kirk Larsen moved to table Action Item #4 Resolution Accepting Pancheri-East Bank Eligibility Report, until the next scheduled Board meeting on February 17, 2022, Thompson seconded the motion. The motion passed unanimously. 5. Annual Report. Cramer stated that he is in the process of working on it and collecting data. Cramer asked for suggestions or commentary that is wanted in the report let him know. Radford asked that he include something about the 1st Street/Northgate area that they are working on it, but it hasn’t moved forward yet. 6. RAI/Legislative Updates. Armbruster stated that it is quiet on the Urban Renewal front, but this is the time between now and mid-February where things start to appear. Armbruster stated that they will keep the Agency advised if things show up. Armbruster stated that there is an effort to amend House Bill 389 which passed last year, and it is the Property Tax Relief Bill. Armbruster stated there have been problems with that Bill including it does not incentivize project areas to close out early because the value of new construction in a project area is within the 8% budget count. Armbruster stated that there is an effort to fix that along with a few other things, but whether it goes through the process is uncertain. Armbruster stated that there is a separate Bill that is being introduced to fix the Circuit Breaker Provision in the Bill that if fully implemented would cut people off of qualifying for the Circuit Breaker. Armbruster stated that there is big media coverage on the income tax cuts and rebates and that has gone through both Houses and he assumes the Governor will sign that as soon as it gets through the system. Armbruster stated that there is some talk about other property tax revisions. Armbruster stated that RAI Board met last week and focused on Legislative and compliance with the various information documents that have to be filed with either LSO and/or Tax Commission. Armbruster stated that Urban Renewal Agencies are not yet part of the change in the reporting process that would go to the Controllers Office on Transparent Idaho. 4 Idaho Falls Redevelopment Agency January 27, 2022 Next Regular Meeting: February 17, 2022 Brent Thompson moved to adjourn the meeting, Kirk Larsen 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 January 27, 2022