Idaho Falls Redevelopment Agency

IDAHO FALLS REDEVELOPMENT AGENC Y P.O. BOX 50220 IDAHO FALLS, ID 83405 July 21, 2022 Regular Meeting Minutes Council Chambers Call to Order: Lee Radford called the meeting to order at 12:00. Members Present: Lee Radford, Brent Thompson, Terri Gazdik, Chris Harvey, Kirk Larsen (via Webex), Thomas Hally, John Walker. Members Absent: Also Present: Kerri Beutler; Ryan Armbruster Esq. (via Webex,), Abigail Germaine, Esq. (via Webex); Renee Magee (via Webex) and interested citizens. 1. Modification to Agenda. None. 2. Approval of Minutes June 16, 2022. Armbruster had typographical errors requested to be fixed. John Walker moved to accept the Minutes for June 16, 2022 with technical changes, Terri Gazdik seconded the motion, and the motion passed unanimously. 3. Approval of Expenditures and Finance Report. Lee Radford presented the Finance Report Dated July 21, 2022. In the River Commons Area: $50.00 to Rebecca Thompson for transcription of minutes; $1,404.80 to Elam and Burke. Brent Thompson moved to approve the Finance Report dated July 21, 2022, Terri Gazdik seconded the motion and the motion passed unanimously. 4. Potential Micro-District along Stanley Street and Boge Ave. Cramer was approached months ago by the development team. Cramer stated that they are planning expansions to the building on the west of Boge Ave, and the east of Boge Ave. Cramer stated that most of the infrastructure is there including, road, sidewalk, utilities. Cramer stated that they are interested in rock. Cramer stated that they had originally approached the owners of another parcel in the area, and they are hoping to create a larger overall area, but the property owner is not ready to move forward. Cramer wants to gauge interest on a micro-district. Cramer stated that he has asked them for some preliminary numbers and other things and has not yet received those. Cramer stated that the information he has is the boundary that they would like to pursue, and they are wanting assistance with rock removal on the sites. Cramer has not seen the applicant join the meeting. Cramer stated that they can continue until next month and he can continue to get the information from the applicant. Radford asked what kind of development they are wanting to create. Cramer stated that it is more of the same of what you see. Cramer showed the supply company on the corner of Stanley and Boge and that would be extended, and the east side would be warehouse/industrial type uses. Radford requested that they continue that item until there is an applicant that can answer questions. 5. Tentatively Approve the Proposed 2023 Budget and Schedule a Public Hearing. Cramer showed the proposed budget. Cramer noted that they have a public hearing notice for August 18, but Beutler and Cramer will be out of town and so that meeting needs to be moved to August 25, 2022, if it works for the other Board Members. Cramer stated that there was a change to office expenses that were originally listed at $300,000 and those have been reduced to $10,000. Cramer stated that they are trying to budget for all anticipated revenues and any expenditures. Mark Hagedorn presented that in the River Commons they project property taxes to be $1.35 million; projected available cash would be $1.6 million and that leaves the expenditures for the River Commons with professional fees etc. The projected OPA payments are 75% of the property tax collections, and the remaining amount is placed as capital projects as the Board has discretion to do. Mark Hagedorn presented that in Jackson Hole Junction the OPA percentages are different and are 80%. Mark Hagedorn presented that Eagle Ridge OPA percentages are 85%. Radford asked if Jackson Hole Junction will still only be $200,000 even though there are more buildings coming online in that area. Hagedorn stated that it has not hit the property tax roles, and so if they get their CO before they finish it could go higher, but in the event the CO is not issued they have $120,000 in capital projects and in City budgeting they try to move funds between funds through a council approved action. Radford feels there should be higher numbers than $200,000 after the dealership and the health care center come online. Hagedorn hasn’t heard that they have been issued a CO yet, and if they haven’t, they are not yet on the tax roles. Cramer stated that the dealership is a ways away from the CO and the medial building has been issued. Hagedorn stated that they can increase and make the revenue $300,000 and increase the OPA payments. Radford feels it is fine. Thompson asked what is generating taxes in Eagle Ridge. Cramer stated that most of the revenue is coming from Guns and Gear. Hagedorn stated that they had over $50,000 in property tax collections so they rounded up. 6. Update on Blacktail Project. Cramer stated that they have started the eligibility report and the project is progressing on the IFRA side and the City side. Cramer stated that they have submitted the geo-tech report. Cramer stated that it is moving forward. Blake Jumper, Tailwater Development. Jumper presented that they have completed the soil report and have found that the integrity of the soil is good with no concerns. Jumper stated that rock is found in two-thirds of the site on the west portion from middle of Anderson to the west border has the majority and it is 1 foot subsurface, and the east portion of the lot the rock is deeper at 6-7 feet. Jumper stated that depending on how much fill they bring into some portions of the site, they might not have to dig too much, but the west two-thirds of the site they will have to dig for utilities. Jumper stated that it is doable, but financing is going to be important to make the numbers work. Jumper is thankful to the Board for working with them. Radford asked what they are thinking for the development. Jumper stated that it is residential/low-income housing. Jumper stated that he owns an affordable housing development group. Jumper stated that it is 156 units of family housing. The buildings are garden style three story walkups with a club house, playground designated for families in the units. Jumper stated that 153 of the 156 units will be rent restricted. Radford asked if they are building along the front of Anderson now and asked what they want to do with the rest of the property. Jumper clarified stated that they have seven acres under contract and 13 acres that will remain to the north. Jumper stated that ITD is proposing a highway improvement project which might take the majority of the thirteen acres behind the site. Jumper is in discussion and if ITD does not proceed with the improvements, they may look into that property. Radford asked what the next step is for the process. Jumper stated that they want to execute an MOU and they are working on the resolution, and Renee Magee is working on the eligibility report. Jumper stated that they are in a good spot. Radford asked if the credit markets are going to impact the ability of the credits. Radford asked how they foresee the qualifications. Jumper stated that it is always competitive, and it is hard to know who is going to be participating, but this project scores well in the competition and the TIF money goes a long way. Jumper stated this project is more straight forward than the Bonneville. Jumper stated that the market itself, the financing rates are volatile, and they have to be conservative with their expectations and move forward. Radford asked if they have estimates for fill and trenching. Jumper stated that they had a predevelopment meeting to talk through different aspects and he was hoping for a roadway to connect to the northern parcel, so they don’t landlock that northern property. Jumper stated that they are bringing all the utilities to this property, and they will set those out on the north boundary. Jumper is hoping to dedicate the roadways that connect the north parcel, but the right of way has to be extended and they need 60’ right of ways for roadway if they are dedicated to the City and he doesn’t think those are eligible costs, which is disappointing. Jumper stated he is trying to figure out other items that he hadn’t considered initially that might qualify under TIF and one of those was along Anderson there is an 8’ right of way for sidewalk curb gutter landscape and utilities and Idaho Falls Power is requiring easements. Jumper asked if those costs for right of ways that are not a private benefit to the development, could they be included in TIF. Armbruster stated that he would need to look at it, but generally public easements in the right of way are typically eligible expenses. Armbruster stated that they would need to analyze that as they prepare the eligibility report and the plan. Armbruster stated that they will continue to assess how that is going to work out. Thompson asked if the right of ways aren’t adequate how can the land be approved if it will cut off the northern parcel. Cramer stated that typically the City will require that they record a cross access agreement so that the access to the property to the north remains. 7. Pancheri East Bank Status. Cramer hoped he would have a report back from the title company as they are trying to determine who owns the right of way. Cramer stated that the report has not come back. Cramer stated that he is going to talk to Mr. Burggraaf and see if he is interested, regardless of what the report says. Cramer stated that the Burggraaf might be interested in including this property in the District and if they are, there is no need to wait on the status of the boundary without having the title report summary in hand. Cramer stated that if Burggraaf is not comfortable until he knows, then it does affect the boundary. Cramer stated that a lot of the area is remnant pieces, and the title company is trying to sort it out. Radford asked if they are ok on the timeline for what the Balls need for their development. Cramer stated that they do not need to start until next spring. Armbruster stated that they will get to crunch time to complete the plan by the middle of calendar year if they get any substantial delay. Radford asked why they need to resolve the title issue, and why cannot they just include the roadway as it is a problem in the area that there is conflicting ownership and that is one of the criteria, and that ownership and property lines can be straightened out. Cramer stated that staff was trying to resolve it to determine whether or not Mr. Burggraaf would be supportive of his property being included, and if there is no reason to wait for him to include his property they can move forward with the boundary. Radford asked Armbruster if they need permission to include property. Armbruster stated that they don’t need his permission, but if there is an objection it makes the approval more difficult. Armbruster stated that they can move on and figure the ownership out. Armbruster stated that because of the timeline that could be the better strategy. Armbruster stated that they would keep him involved. Radford stated that the hotel needs to go forward to improve the community, so this needs to keep moving, and include all the property in the description and move forward with the district. Radford asked if that can happen by next month. Armbruster stated that the plan is to have a good working draft of the Plan by August meeting. Armbruster stated that they can then go to the steps to get approval by City Council. Radford would like to have the draft plan by next meeting. 8. RAI/Legislative Updates. Armbruster stated that there is no legislative update, and some talk about filing requirements with the controller’s office, but business as usual with RAI. There is an effort to consider whether or not there will be legislation to allow taxing entities to provide local auction sales. Next Regular Meeting: August 18, 2022. Brent Thompson moved to adjourn the meeting, ____ seconded the motion and it passed unanimously. Radford adjourned the meeting at 12:30 p.m. Respectfully Submitted: Beckie Thompson