Idaho Falls Redevelopment Agency

IDAHO FALLS REDEVELOPMENT AGENC Y P.O. BOX 50220 IDAHO FALLS, ID 83405 October 20, 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, Chris Harvey, Kirk Larsen, Jon Walker, Tom Hally (via Webex). Members Absent: Terri Gazdik Also Present: Brad Cramer; Ryan Armbruster Esq. (via Webex); Renee Magee (via Webex) and interested citizens. 1. Modification to Agenda. None. 2. Approval of Minutes September 15, 2022. Armbruster had some typographical changes. Kirk Larsen moved to accept the Minutes for September 15, 2022, Brent Thompson seconded the motion, and the motion passed unanimously. 3. Approval of Expenditures and Finance Report. Lee Radford presented the Finance Report Dated October 20, 2022. In the River Commons Area: $100.00 to Rebecca Thompson for transcription of minutes; $4,450.00 to Renee Magee for preparation of the eligibility report and feasibility study for Pancheri East Bank Project; $4,391.95 to Elam and Burke; $2,705.00 to EICRMP for insurance payment for the entire year. Renee Magee clarified that her bill was for both the feasibility study for Pancheri East Bank and the Eligibility Study to include all work that has been done since August. Brent Thompson moved to approve the Finance Report dated October 20, 2022, Kirk Larsen seconded the motion and the motion passed unanimously. 4. Approval of Engagement Letter with Rudd and Company for the Annual Audit. Cramer received the letter yesterday. Cramer asked Cassie if there is anything different about this year that Mark Hagedorn has indicted. Cassie stated that this is a standard engagement letter and if the Agency wants to, they can look into local firms. Radford asked if it is the same rate as last year. Thompson indicated that the letter stated to not exceed $7,000.00. Armbruster stated it is a standard engagement letter that all the public entity auditors prepare and send out, and he sees nothing of concern. Radford stated that they had a discussion to change last year, but he feels everyone is satisfied with Rudd. Brent Thompson moved to approve the engagement letter with Rudd and Company for the Annual Audit, Kirk Larsen seconded the motion and it passed unanimously. 5. Consideration Resolution with Brenden Dohs and Treespring Partners for Urban Renewal District for Boge and Stanley. Cramer stated that last month they discussed an urban renewal district to include 2 phases for industrial and flex spaces on Boge Ave., and the Board approved preparing the MOU to begin the eligibility report. Cramer stated that they did consider modifying the boundary to include more area than the original request, because this area has development issues, including shallow rock, and gaps in the utility system. Cramer showed on the map gaps in the utilities on the southern end of Boge Ave., as well as a gap in the sewer line near this property and another gap in the sewer on the west side of the proposed area. Cramer stated that this is a starting point to discuss. Cramer explained why the line doesn’t include all property because the line follows City limits and along North Boulevard there are larger buildings that are owned by the Federal Government as part of the INL Facilities. Cramer explained that this boundary would encompass the privately owned parcels that are annexed into the City already. Cramer indicated that as they move forward with the eligibility report, if there are not enough willing partners to justify the larger boundary it can be shrunk back. Radford asked about the property to the east. Cramer stated that the developers on Boge have discussed it with the property owners, and staff has discussed it with the property owner and they do have plans for the area, but they are not ready to execute them and with the short time frames that are available for districts, the developer wanted to wait until they were closer to development. Thompson asked who owns the property flanking the east side of Boulevard. Cramer stated that it is owned by Teton Communications, and they have recently submitted some site plans for development on the site. Cramer stated that they have not approached Cramer about participation. Thompson asked if they know about the Agency. Cramer stated that he only learned yesterday about the site plan, and they will be reaching out through a coordination with the Economic Development Administrator and have him contact the property owners in the area to make them aware. Radford stated that if they do not need the help there is no need to get involved. Radford gave background for Jon Walker and indicated that they discussed it last month and were reluctant to move into urban renewal for the more industrial/commercial area, but on the ground the basalt is so significant that these parcels won’t develop well if the basalt is not dealt with. Armbruster explained the Memorandum of Understanding. Armbruster stated that it is the standard MOU dealing with a developer that has approached the Agency and is willing to pay the planning costs to get the analysis going and the plan. Armbruster stated that the MOU reflects that the developer has indicated what the assessed value increase of the project and the figures are what has been used in the past. Armbruster stated that the developer will deposit $8,000 to complete the eligibility report through the City Council level, $4000 after the approval of the MOU and $4000 at the time City Council considers the eligibility report, and if City Council approves the Eligibility Report, the developer will be required to deposit $15,000 within 7 days after the City Council action and then $15,000 30 days thereafter. The $30,000 is to cover fees and costs of the Agency to prepare the plan. Radford concluded that the developer is paying the costs upfront until a point that it is approved. Brendon Dohs, Dohs reiterated that the sites are filled with basalt, and they are looking to develop the property into flex spaces for local contractors. Dohs stated that it will be a great project. Radford asked about the estimate for the basalt removal costs. Dohs stated that they have done an estimate and it was substantial with an estimate of $900,000 including the basalt removal, connection to utilities, etc., to make the site developable. Cramer verified that number as reflected in the MOU as the anticipated cost. Armbruster stated that this is the first step and there are many details moving forward and contemplating that if the plan is approved it would be an owner participation agreement between the Agency and the developer and the standard protocol is that the developer pays for the costs of the site remediation and other public infrastructure improvements and then the Agency repays the developer over time from the taxes generated from the tax increment of the private development. Thompson asked how does the approval of the micro district fit in with the larger district outlying. Cramer showed the smaller district that is specific to the proposed development and indicated that they thought it would be good to take a larger look at all the issues in the area to get this area going. Cramer stated that the relationship is that while they are here looking, look at the larger utility/infrastructure system as well as the rock to see if there are other potential partners in projects. Thompson asked if they decide to move with the entire area, what would the developer be responsible for as far as expenses relative to whatever ultimate size district is approved. Cramer stated that it is similar to what was done in the Eagle Ridge District where the developer in the initial OPA was responsible for the public infrastructure in division 1 of the plat and as that portion develops, they are reimbursed for that portion. Cramer stated that they now are having a division 2, and there is discussion on whether a new OPA needs to be developed with that developer. Cramer stated that it would be similar here, and an OPA would be developed specific to this portion of the district and as other development happened there could be additional OPAs created. Thompson asked about the eligibility report for the entire larger district. Radford stated that the initial developer that moves forward is taking the burden of that cost, and this is the normal way they do it, and the developer could weigh in and state that they only want a micro district analyzed and that could be decided. Radford stated that the more the whole area improves it will be better for everyone. Armbruster stated that assuming everything goes forward the developer would be reimbursed for the planning costs from increment generated from the project; and costs make little difference if it is 2 blocks or 200 blocks. Armbruster stated that the process is the same for small versus large. Armbruster stated that the numbers in the MOU are bare bones to get them through the process. Dohs indicated that they have reviewed the MOU and are in agreement and want to move forward. Armbruster read the Resolution by Title. A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF IDAHO FALLS, IDAHO D/B/A IDAHO FALLS REDEVELOPMENT AGENCY, APPROVING THAT CERTAIN MEMORANDUM OF UNDERSTANDING BETWEEN THE IDAHO FALLS REDEVELOPMENT AGENCY AND TREESPRING PARTNERS, LLC; DIRECTING THE CHAIR OR VICE-CHAIR TO EXECUTE AND ATTEST SAID AGREEMENT; AUTHORIZING THE CHAIR OR VICE-CHAIR TO EXECUTE ALL NECESSARY DOCUMENTS REQUIRED TO IMPLEMENT THE AGREEMENT; AUTHORIZING ANY TECHNICAL CHANGTES, SUBJECT TO CERTAIN CONDITIONS; AND PROVIDING AN EFFECTIVE DATE. Brent Thompson moved approve the Resolution with Brenden Dohs and Treespring Partners, Jon Walker seconded the motion. Radford called for roll call vote: Walker, yes; Harvey, yes; Thompson, yes; Larsen, yes; Hally, yes; Radford, yes. The motion passed unanimously. 6. Update on Anderson Bush. Cramer presented that the Eligibility Report was presented to City Council and approved, and they are not authorized to proceed with development of the plan, and they are getting ready to contact the developer on the next payment per the MOU and then initiate the process with legal and Renee Magee. Cramer added that the developer was awarded the tax credits for the project and the tax credits are contingent on the successful establishment of the district. Thompson clarified and Cramer agreed the project is for subsidized housing. Radford indicated that this is a low-income housing west of AH Bush Elementary School. Radford stated that there is a ton of basalt in this area, and difficult topography. 7. Update on Pancheri East Bank. Cramer stated that the process of getting the plan approved continues and they have sent out the required letters and packets to the taxing districts, the Mayor, and City Clerk; the ads have been published and one pending and this will go before the City Council on November 10, 2022. 8. RAI/Legislative Updates. Armbruster stated that there is nothing substantive to report and they are coordinating compliance issues with various members of the association and nothing new on Legislative, but next time they will have had an election and know Representatives and Senators throughout the State and can prepare for the 2023 session. Radford stated that they might be able to cancel the November 17, 2022, meeting. Next Regular Meeting: November 17, 2022. Brent Thompson moved to adjourn the meeting, Kirk Larsen seconded the motion and it passed unanimously. Radford adjourned the meeting at 12:30 p.m. Respectfully Submitted: Beckie Thompson