Idaho Falls Redevelopment Agency

IDAHO FALLS REDEVELOPMENT AGENC Y P.O. BOX 50220 IDAHO FALLS, ID 83405 September 21, 2023 Regular Meeting Minutes Council Chambers Call to Order: Lee Radford called the meeting to order at 12:00. Members Present: Lee Radford, Kirk Larsen, Chris Harvey, Brent Thompson, Terri Gazdik, Jon Walker (via Teams) Members Absent: Tom Hally. Also Present: Wade Sanner Executive Director, Brad Cramer; Megan Conrad, Esq. (via Teams); Renee Magee (via Teams) and interested citizens. 1. Modification to Agenda. None. 2. Approval of Minutes August 17, 2023. Gazdik moved to accept the Minutes for August 17, 2023, Larsen seconded the motion, and the motion passed unanimously. 3. Approval of Expenditures and Finance Report. Lee Radford presented the Finance Report Dated September 21, 2023. In the River Commons Area: $125.00 to Rebecca Thompson for transcription of minutes; $3,147.50 to Brad Cramer- Perspective Planning and Consulting, LLC; $5,167.50 to Elam and Burke for legal services; $2,771.50 to City of Idaho Falls for administrative fees; $307,641.55 to BV Lending for OPA payment; $9,448.73 to Bandon River for OPA payment. In Eagle Ridge $300.00 to City of Idaho Falls for administrative services; $9,965.88 to Eagle Ridge Development for OPA. In Jackson Hole Junction $300.00 to City of Idaho Falls for administrative fees; $82,591.21 to Jackson Hole Junction for OPA payments. Larsen moved to approve the Finance Report dated September 21, 2023, Harvey seconded the motion and the motion passed unanimously. 4. Engagement Letter with Rudd and Company for the Fiscal Year 2023 Audit. Radford indicated the Agency has received an Engagement letter signed by Scott Bond of Rudd and Company for the Audit for 2023. Radford asked for comments. Wade Sanner had no comments. Cassie Auten had no comments. Larsen moved to approve the Engagement Letter with Rudd and Company for the Fiscal Year 2023 Audit, Gazdik seconded the motion and the motion passed unanimously. 5. Resolution Approving the Yellowstone Square Eligibility Study for the proposed Yellowstone Square Urban Renewal District. Radford recused himself and asked Terri Gazdik to conduct the meeting for this portion. Gazdik indicated that the action item is a resolution. Gazdik asked for questions and discussion. Larsen asked if Magee had anything she wanted to share. Magee indicated that she is available, and the only comment that she has is that there has been a change in the 10% Limitation Table, as the study now includes the Northgate Mile as well as Yellowstone Square, and the percentage is still slightly less than 1% of the total assessed valuation of the City of Idaho Falls. The Resolution includes all the qualifying conditions found in the study area. This area was a prime commercial area in the 1970’s – 1990’s, and now contains multiple vacancies. Conrad asked if it would be ok for the resolution to do a roll call vote. Gazdik agreed to perform a roll call vote. Magee stated that Steve Keim is online and available to answer any questions. Gazdik stated that they had a question about Starbucks on the property and whether that is moving forward. Keim indicated that the Starbucks tenant is firmed up and some of the other uses are soon to be in approval. Keim is encouraged that there will be a lot of redevelopment quickly. Conrad read Resolution No 2023-17 by title. A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF THE CITY OF IDAHO FALLS, IDAHO, ALSO KNOWN AS THE IDAHO FALLS REDEVELOPMENT AGENCY, ACCEPTING THAT CERTAIN REPORT ON ELIGIBILITY FOR CERTAIN PROPERTY REFERRED TO AS THE YELLOWSTONE SQUARE AREA AS AN URBAN RENEWAL AREA AND REVENUE ALLOCATION AREA AND JUSTIFICATION FOR DESIGNATING THE AREA AS APPROPRIATE FOR AN URBAN RENEWAL PROJECT; TO MAKE ANY NECESSARY TECHNICAL CHANGES TO THE REPORT; AUTHORIZING AND DIRECTING THE CHAIRMAN OR ADMINISTRATOR TO TRANSMIT THE REPORT AND THIS RESOLUTION TO THE CITY COUNCIL OF THE CITY OF IDAHO FALLS REQUESTING ITS CONSIDERATION FOR DESIGNATION OF AN URBAN RENEWAL AREA AND SEEKING FURTHER DIRECTION FROM THE COUNCIL; AND PROVIDING AN EFFECTIVE DATE Larsen moved to approve the Resolution Approving Resolution 2023-17, Harvey seconded the motion. Gazdik called for roll call vote: Radford, recused; Walker, yes; Larsen, yes; Gazdik, yes; Harvey, yes; Thompson, yes. The motion passed unanimously. 6. Resolution Approving the Northgate Mile Eligibility Study for the Proposed Northgate Mile Urban Renewal District. Brad Cramer was present and presented as follows: Cramer presented the eligibility report for the Northgate Mile. Cramer stated that this is being presented the first time as a final draft as it fell off the radar, but if the Commission has questions that need to be resolved that is up to the Commission. Cramer presented the slides showing why this area is eligible pursuant to the Statute. Radford confirmed that Conrad can see the slides. Slide 1 - Cramer stated that there are 50 parcels in the proposed boundary covering 29 acres, and 17 are privately held, and the other acres are owned by a public entity or right of way. Mixed land use exists, including light industrial, residential, commercial, and some professional services. Slide 2 - Summary of Criteria showing the ones that were the most obvious issues in the area. The area met all the criteria except 2 and the area only has to meet one to be eligible. Cramer reminded the Commission that just because the area is eligible, it doesn’t obligate the City to create a district. Slide 3- Deteriorating structures and infrastructure. Cramer showed a picture of broken concrete and stated that it is common throughout the entire site. The old Foundry building has broken windows and weeds are starting to pop through sidewalk and the building is deteriorating rapidly. There are 15 structures that are appearing vacant, and more than 15 have signs of deterioration. Slide 4 – Outmoded/inadequate street pattern and faulty lot layout. Northgate is a traditional grid pattern, but the challenge in this area for traffic patterns is because Northgate mile bisects the area and creates awkward angles and street patterns within a mostly traditional neighborhood running north/south. Cramer stated that Northgate, due to the odd angle, creates triangle shaped parcels, and that creates a faulty lot layout. The lot on Garfield and Emerson is triangle, and surrounded by right of ways, and that would create difficulty in development. The lots are narrow 125x25 lots. The grid pattern isn’t faulty but does create a unique challenge versus a green field development. Slide 5- Unsuitable topography. This area isn’t as bad as some areas in the City. The elevation rises as you move north, and this area has basalt. The north end of the site has basalt in sub surface, and the changes in topography. Slide 6 – shows a picture of a very quick drop in elevation where the new police station sits in comparison to the grade of the street. Where you have drops in elevation you have streets that have never been developed with curb sidewalk and gutter, and that can create an increased risk of damage to buildings with flooding. Slide 7 – Economic Underdevelopment, Age and obsolescence of the area. Cramer showed the south side of the foundry and the back side of Muddy’s. There is a lack of infrastructure, as the public streets have no infrastructure, and streets that are not connecting. There are high vacancy rates (at least 15 are partially vacant). The average age is 50, and several over 80 years old and will not meet building, fire, and safety codes. Due to that it will take additional funds to rehabilitate the buildings. The water department indicated that there are issues with the water system, and it needs upgraded. Slide 8- Shows a picture of the core of the City, showing vacant parcels and no structures. Where some of the car dealerships have moved out, there are large expanses of asphalt. The traffic counts are in the report and since the year 2000 the traffic count on Northgate mile has dropped by half since 2000. As business leaves traffic counts have reflected it. Slide 9- shows an auto sales lot that has left the area, and it is for sale. Slide 10- Unsanitary or unsafe conditions. The City and the Agency had a Brownfield analysis done, and the map shows that within this boundary there were 11 sites identified as brownfield or potential brownfield sites. This is an area that qualifies as insanitary or unsafe. Idaho Falls did a healthy community study, and the factors and data points used show that your health is based on your zip code. The study showed that this is one of the lowest scoring areas, including higher crime rates, lower incomes, and higher vacancies. Slide 11- Diversity of Ownership. This does not often come up, but 25 landowners’ control 17 acres of land and that indicates diversity of ownership, and the largest amount of land was under 3 acres, and those parcels are separated by public streets. Slide 12- Ten Percent Limitation on assessed Valuation. Idaho Falls historically is a long way off from the 10% limitation. The Northgate proposed and the two that are proposed are still less than 1%. The report found the area is eligible. Only 2 of the criteria were not met, as they were not evaluated. Gazdik stated that the area needs redevelopment, and have they explored outside of the boundary to make sure they encompassed as much as they can for this District. Cramer stated that they did not evaluate all the areas that could be eligible in the report, and that is because of the limited amount of time the District can be open and the limited amount of property owners ready to develop. There are more opportunities for future districts, but they were looking for what is ready to do things now. Gazdik asked if in a year they find more acreage, they would have to set up a new District. Radford agreed that the property owners are ready to move forward. Thompson asked Cramer to describe the legend of the Brownfield Study. Cramer stated that they are scoring and assuming age, and land use. The study doesn’t suggest that the consultant went in every building, the study is based on expertise on lands that are probable to have contamination. The study is based on factors they identify with records search etc. Thompson confirmed that the colored areas are not unimproved but contribute to the classification of Brownfield. Cramer agreed and stated that it could be an old building with possible asbestos. Conrad read resolution No. 2023-18 by title. A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF THE CITY OF IDAHO FALLS, IDAHO, ALSO KNOWN AS THE IDAHO FALLS REDEVELOPMENT AGENCY, ACCEPTING THAT CERTAIN REPORT ON ELIGIBILITY FOR CERTAIN PROPERTY REFERRED TO AS THE NORTHGATE MILE AREA AS AN URBAN RENEWAL AREA AND REVENUE ALLOCATION AREA AND JUSTIFICATION FOR DESIGNATING THE AREA AS APPROPRIATE FOR AN URBAN RENEWAL PROJECT; TO MAKE ANY NECESSARY TECHNICAL CHANGES TO THE REPORT; AUTHORIZING AND DIRECTING THE CHAIRMAN OR ADMINISTRATOR TO TRANSMIT THE REPORT AND THIS RESOLUTION TO THE CITY COUNCIL OF THE CITY OF IDAHO FALLS REQUESTING ITS CONSIDERATION FOR DESIGNATION OF AN URBAN RENEWAL AREA AND SEEKING FURTHER DIRECTION FROM THE COUNCIL; AND PROVIDING AN EFFECTIVE DATE. Thompson moved to approve Resolution 2023-18 Approving the Northgate Mile Eligibility Study, Gazdik seconded the motion. Radford called for roll call vote: Gazdik, yes; Harvey, yes; Larsen, yes; Radford, Yes; Thompson, yes; Walker, yes. The motion passed unanimously. 7. Request for Agency Assistance by Roundhouse for a Project within the Eagle Ridge Urban Renewal District. Sanner stated that the Applicant from Roundhouse is available on Teams. Patrick Wahl from Roundhouse Development from Boise, Idaho. Roundhouse owns and operates 6500 units across the mountain west. Roundhouse is set up to hold all their projects for the long term and own and operate in house, so they design and build high quality projects because they maintain ownership. They have a 15-acre site at the end of Snake River Parkway. It sits at the end of Snake River Parkway in between Pioneer and South Utah. It was recently platted with commercial lots surrounding it on South Utah. Roundhouse has submitted a site plan for 288 apartment community, with 1-, 2-, and 3-bedroom units, including a 5,000 square foot club house, pool, spa, community garden, and playgrounds. Roundhouse estimates the project value of close to $83 million, and the property within the IFRA Boundary would be $50 million. Estimated taxes on the IFRA Boundary are $476,000. They need to make off-site improvements on S. Utah Ave., and Pioneer Road to match the street sections to the west. There may be a need for some rock blasting. Roundhouse included photos and renderings of what the project when completed would look like. Radford asked Sanner and Brian Stevens what the duration of the Eagle Ridge Plan was. Sanner indicated that Eagle Ridge has until 2034 until it is completed. Larsen asked what the 1 bedroom would rent for. Roundhouse stated they are expecting a $1300 range. Thompson asked if Utah Ave, frontage would have commercial lots. Roundhouse agreed that the Utah frontage would have commercial, and they would also wrap around the Snake River Parkway piece. Radford asked how this would work with the current OPA where they have promised tax increment to the Eagle Ridge Development developers. Conrad stated that they would need to look at that obligation, but she thinks this is out of the reimbursement of the Eagle Ridge Area. Stevens stated that there was a plat that was Division 3 of Eagle Ridge and this falls into Division 4 of Eagle Ridge, and the OPA that exists was for Division 3. The District itself takes in a greater area, and the OPA is reimbursing where they’ve made the street improvements and from the Snake River Parkway Bridge, they have improved that section, built a hotel, and Guns and Gear on right. They have developed around that intersection, and the gap is in a different division of platting and the OPA would deal with that separate division. This shouldn’t have a significant affect. Stevens stated that they will need to look at that with accounting and legal. Radford wants the developers contacted. Roundhouse is buying this project from Eagle Ridge LLC. Roundhouse is not purchasing the commercial, only the 15-acre residential. Radford asked what the next step is. Conrad stated that if the project is desirable, the next step would be to direct step to work on an OPA with the develo9pment group and they will analyze how they need to work through existing OPA’s. Radford clarified that they would need to be consistent with the current developer and make sure the additions Roundhouse is presenting will work with that. Thompson is asking about the commercial lots. Roundhouse stated that they have agreed with the seller to make improvements on their behalf as part of the purchase and sell agreement. The motion would be to direct Counsel to prepare an OPA for consideration. Thompson moved to direct legal counsel to analyze and formulate a proposed Owner Participation Agreement for this portion of the Eagle Ridge District, Larsen seconded the motion. The motion passed unanimously. 8. Consider Request for Agency Assistance by US Development for Projects within, and adjacent to, the Eagle Ridge Urban Renewal District, including De- annexation of parcels from existing urban renewal districts, and a proposed new project area. Dan Brightonstein thanked the staff and introduced Matt Brightonstein. Matt Brightonstein, Layton, Utah. Is new to this side of development and used to work construction. They have done hotels and have not been working on multi-family residential, as well as movie theatres for the Miller Group. They have purchased two parcels next to the Mountain America Center on Pioneer Road. Their property is between Eagle Ridge Urban Renewal District and River Commons Renewal District. They have a few concepts and believe there are some potential funds to be accessed to tie in White Water Road with a bridge over the canal, and the improvements to fill in the puzzle pieces of the area. They like the area and are impressed with the connection and trails around the Snake River. They feel the bridge component would make it easier to assess the trails, Stockman’s, and opening the main road to access White Water as a second road in. They feel that White Water would open another main arterial road to cycle traffic out of the Event Center. Brightonstein gave some facts on population growth and employment growth. Brightonstein stated that in the last 10 years there has been 18% growth and 15% increase for employment opportunities, with low un-employment rates at 2.3% in Bonneville County. This is a big parcel of an entertainment district, and it is underutilized currently with a barn on it. There is an underperforming road, and they want to create a bridge connecting White Water to create access point as well as complete the puzzle with Pioneer Road and White Water. They have talked to the adjacent property owners, and they are potentially willing to work with the developer to improve this and bring value to the area. The estimate is under $3 million in assistance, and that can be repaid with their 272-unit development. Radford clarified that the proposal is not to change any district, but just take this piece of land and make a new district. Brightonstein indicated that they would potentially include the storage units. The developer is open and seeking counsel from the Agency if they should de-annex the Burtenshaw piece and the storage units and add to create a new district. The monetary advantage to the City and tax increment financing to build infrastructure would be the 272 units that the developer would build and a 140-unit hotel that they are trying to explore on the Burtenshaw site. The revenue from a 120-unit hotel would be exceptional and play well to the Mountain America Center as they would benefit from the Auditorium Tax. They are asking for assistance to build public infrastructure and in their 3-year plan, revenue would be coming in. They are prepared to pay the fees to have the study done. Radford asked Conrad to orient and give counsel on the de-annexation of the areas including Burtenshaw and storage units. Conrad stated that there are two problems, with how to help pay for things that are outside of a District if they just took the green parcel and put it in a new revenue allocation area, that wouldn’t capture all the improvements the developer is wanting to make. The concept that is being discussed and seeking counsel on is whether the triangle piece along with the right of way along the parcel the developer owns, and de- annexing the stub of the right of way that would like to be improved and leaving the storage units within the existing boundaries, perhaps that can be combined with the developer owned property to create a new district starting with a new 20-year district. Conrad stated that the second half is the bridge that goes over the River is in the existing River Commons District, and that would be reimbursed as part of the Eagle Ridge improvements. The goal is to figure out how best to accommodate making sure those areas that are needing improvements are within a District, so they are eligible for the reimbursement, and the first part is de-annexation, and the second part is using existing River Commons funds to reimburse the developer for White Water and the Bridge. Tana, Ball Ventures. Tana is responsible for ¾ of the bridge crossing white water and they would take that responsibility and use it in the River Commons Urban Renewal District. Conrad stated that is the next level of discussion as there is an outstanding obligation with a developer in that area, and they need to coordinate that with the Agency and the new developer. Radford asked what the impact of de-annexation on Eagle Ridge would be. Conrad stated that the triangle portion is generating revenue for Eagle Ridge, the right of way that extends is not generating revenue, so by removing the tax generating parcel there would be an impact to the Eagle Ridge District that would need to be quantified and identified. Conrad stated that the storage units are generating $14,000/year and removing the storage units would cause revenue impact to Eagle Ridge. Conrad stated that if a parcel is de-annexed it is put back into the district at its current taxable value, so you cannot count on that $14,000 for being revenue for the new district. Conrad stated that they would need to look at the overall revenue impact and how it would impact the overlapping obligations. Conrad stated that once that analysis is made, if they can separate the right of way from the storage units and keep the storage units in the existing district. Radford stated that right now they need an expression of interest from the Board and what is the next step. Stevens stated that he suggests that they take three actions, to have the Board recommend the study of de-annexation, start on eligibility study to include the de- annexed area for the new area, and use the river commons to build ¾ of the bridge and figure the other 1/3 out. They want to get going on the bridge immediately while the canal is empty and then the other stuff can come after. They need the money to take the project forward. Conrad stated that this is only set for a discussion item and only intended to inform the Board and direct staff to keep working on it or not. Gazdik stated that the outline of the pink is existing eagle ridge, the green will be segregated for the development. Gazdik asked if they want the tiny triangle included within the new district as well. Gazdik clarified it is all the property from Pioneer to the interstate. Larsen asked if there are statutory issues in taking that parcel out of the current district. Conrad stated that de-annexation is the first step and then the only thing they need to make sure is have an understanding as it would impact the eagle ridge district. Conrad stated that when you put parcels into a new revenue allocation area, they have to meet the standards and statutes. The new parcels go in at the current assessed value, and they would not generate. Larsen asked if there is an issue with restarting the clock. Brightonstein stated that the motivation is to get a new fresh start, and after listening to Council that they don’t think it is great to complicate existing district with removing the storage units, and he is happy to not de-annex the storage units and just the Burtenshaw parcel and the road in front of his parcel. Brightonstein stated that there are missing portions of the area that need to be developed. Harvey thinks this is the type of project that the Agency needs to be involved in and they need to make sure it will work with accounting. Thompson agreed that this will be interesting going forward to see what the attitude is about de-annexing the triangle. Thompson wants to see how the discussion process goes with Eagle Ridge relinquishing the triangle as part of the property that is within their revenue stream. Thompson likes the general idea especially the bridge. Walker thinks it would be nice to have additional traffic patterns over there. Radford feels that there is interest, and the staff should keep looking into it and staff needs to figure out which is the best way to do this project. Radford asked staff to bring a proposal on what they want to do next month. Gazdik stated that traffic would be a concern if they added 500 + units to an area. Thompson stated that if they get the bridge done that would help. Gazdik will recuse herself of any decision making. 12. RAI and Legislative Update. Radford skipped RAI. Thompson moved to adjourn the meeting, Gazdik seconded the motion passed unanimously. Next Regular Meeting: November 7, 2023. Thompson moved to adjourn the meeting, Larsen seconded the motion and it passed unanimously. Radford adjourned the meeting at 1:30 Respectfully Submitted: Beckie Thompson