Idaho Falls Redevelopment Agency

IDAHO FALLS REDEVELOPMENT AGENC Y P.O. BOX 50220 IDAHO FALLS, ID 83405 November 16, 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, Terri Gazdik, Tom Hally Members Absent: Chris Harvey, Jon Walker. Also Present: Wade Sanner, Executive Director; Brian Stevens, Brad Cramer; Megan Conrad, Esq. (via Teams); Renee Magee (via Teams) and interested citizens. 1. Modification to Agenda. None. 2. Approval of Minutes September 21, 2023. Larsen moved to accept the Minutes for September 21, 2023, Gazdik seconded the motion, and the motion passed unanimously. 3. Approval of Expenditures and Finance Report. Lee Radford presented the Finance Report Dated October 19, 2023. In the River Commons Area: $100.00 to Rebecca Thompson for transcription of minutes; $1,068.50 Brad Cramer- Perspective Planning and Consulting, LLC; $6,692.75 to Elam and Burke for legal services; $1,880.00 to City of Idaho Falls for administrative fees; $3,111 to ICRMP for insurance. In Eagle Ridge $2,317.50 to Elam and Burke for legal fees; $200.00 to City of Idaho Falls for administrative services. In Jackson Hole Junction $200.00 to City of Idaho Falls for administrative fees. Larsen asked about the amount going to Elam and Burke seemed high is there something that generated the increase. Cassie Auten indicated that Elam and Burke had invoices from August and September. Lee Radford presented the Finance Report dated November 16, 2023. In the River commons Area: $1,775.00 to Renee Magee for feasibility report; $270.00 to Brad Cramer – Perspective Planning and Consulting, LLC; $3,010.00 to Elam and Burke for legal services; $1,890.00 to City of Idaho Falls for Administrative Services. In Eagle Ridge $227.50 to Brad Cramer – Perspective Planning and Consulting; $590.00 to Elam and Burke for legal services; $200.00 to the City of Idaho Falls for Administrative Services. In Jackson Hole Junction $200.00 to the City of Idaho falls for Administrative Services. Gazdik moved to approve the Finance Report dated October 19, 2023, and November 16, 2023, Hally seconded the motion and the motion passed unanimously. 4. Resolution Approving the Memorandum of Understanding with U.S. Development, Inc. Regarding Funding Costs Related to a Plan Amendment to Deannex Parcels and Right-of- Way from the Eagle Ridge Project Area and Proposed New Allocation Area. Conrad presented a proposed Memorandum of Understanding with the developer US Development, Inc. It is a standard agreement that has been used in preparation for eligibility study and planning costs for a new urban renewal plan and district. Conrad indicated that there is a change beginning on Paragraph 6. Conrad stated that during the September meeting they looked at the Eagle Ridge Project Area and US Development is proposing to do a project that is in an area that is adjacent to the existing Eagle Ridge Project Area and contemplates potential improvements to public infrastructure that exists within the Eagle Ridge Project Area. Radford asked for a geographical orientation. Conrad indicated that the map shows a portion of the existing Eagle Ridge Revenue Allocation Area and the area outlined in yellow contemplates the triangle parcel and portion of Pioneer Drive and is within the boundaries of the existing Eagle Ridge Revenue Allocation Area. The pink area that is immediately south of Pioneer Road is not within the boundaries of the Eagle Ridge Revenue Allocation Area, and that parcel has been acquired by US Development for development. With the development of that parcel in pink there is an opportunity to do public infrastructure improvements that are within the boundaries of the yellow generated line along Pioneer Road. Conrad stated that the concept is that the area outlined in yellow would be deannexed from the existing Eagle Ridge Revenue Allocation Area. The outlined area in Green on Exhibit B is the proposed boundaries of a new revenue allocation area, and it consists of the area that was deannexed plus the property that is ownership by US Development. Radford clarified and Conrad confirmed that the storage sheds were not included in the new revenue allocation area. Conrad stated that in paragraph 5 of the MOU there is a 2-pronged approach with the first action to address the deannexation of the parcel in yellow (Exhibit A). The deannexation requires a plan amendment, and that requires some economic feasibility work and there are changes that are made to the original plan for Eagle Ridge to accommodate the deannexation. Upon signing of the MOU $10,000 would be deposited by US Development to begin that process of deannexation. At the same time, or later, they can start the process for planning of the new area intended to be called Snake River West. The eligibility report phase is similar to what you have seen in the past, and it would review the area to be deannexed, and the new area for an eligibility determination as to whether the statutory conditions for a new revenue allocation area have been met. That contemplates $8,000 being paid upon the effective date of the MOU to also get that process started. If the first amendment does not go through, or the eligibility determinations are not consistent with the statute requirements, then the process can stop, but if the processes are successful, the next step would be Section 8 with the anticipated urban renewal plan for the Snake River West. Upon the City Council’s consideration of the first amendment and the eligibility study, US Development would then deposit $20,000 to kick start the planning effort of Snake River West. Everything else in the MOU is consistent with prior MOU’s. US. Development, Inc. The developer indicated that they have been working with the neighbor that owns the corner property to get the annex of his property for the City Road, and working with Ball Ventures to finalize the developer agreement so they can work out the bridge. They have determined that the storage units don’t have any more growth potential for tax payback, and the neighbor’s (Jon) piece doesn’t have benefit of tax growth and that is the reason they settled on the boundary that is being presented. Radford asked about the status of working with the existing developer in the Eagle Ridge Area. Radford wanted to clarify that the developer is ok with deannexation of the portion of property. The developer indicated that they have not spoke with the developer specifically but did speak with someone early on and expressed that the developer is on a mission to get the improvements made on Pioneer Road up to the portion that would touch their improvements, and to get the bridge completed which would complete circulation for the entire portion of the community. The developer feels that the products they will be presenting will be complementary to the developer for Eagle Ridge. The developer feels there is a friendly attitude to make the area grow and develop. The developer stated that they have been working with Jon Burtenshaw on the triangle shape piece and they are in the process with the City, the annexation of part of the road, which Burtenshaw has agreed to contribute for the road. They have also been working with people from the Event Center and they are close with a hotel development opportunity on the site. Developer stated that if they are successful in pursuing this new area, and build this much public infrastructure, and they are successful the hotel, as well as the multi-family development, they will have serious tax dollars coming into the City. Larsen asked about the Burtenshaw property, and if it extends Pioneer Road parallel to the Interstate. The developer agreed that they should include in their budget of Pioneer Road, that portion in front of the storage units to get it all connected. Ther is a battle as the storage units are not annexed, and they are trying to do the neighbor approach and have her give up some ground for the road, even at the expense of having to redevelop her entry in. If they are spending money on Pioneer Road in front of them, they would like to have it connect to the Eagle Ridge section, so they are working through that. The developer clarified the question from Larsen, that Pioneer will not be moved, it will stay with its current jog. Larsen asked for clarification on the location of the bridge that will be built. The developer indicated that the bridge would go from White Water across the canal as another artery to get to restaurants and other things. Radford asked Conrad to explain how this relates to the Eagle Ridge Portion. Conrad indicated that the Eagle Ridge and related OPA reimbursement provisions are specifically related to a specific portion of the development site, so the reimbursement is not based on the parcels that are being discussed, as the parcels do not generate revenue for the Eagle Ridge OPA. Gazdik asked if they are able to move forward without permission from the developer in Eagle Ridge to denannex the property. Conrad stated that they will continue to be in conversations with Eagle Ridge, but they generally would not have a right to oppose this action because it does not impact their reimbursement under the OPA. Conrad read the Resolution by Title. A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF IDAHO FALLS, IDAHO DBA IDAHO FALLS REDEVELOPMENT AGENCY, APPROVING THAT CERTAIN MEMORANDUM OF UNDERSTANDING BETWEEN THE IDAHO FALLS REDEVELOPMENT AGENCY AND U.S. DEVELOPMENT, INC. CONCERNING THE ADVANCE FUNDING OF CERTAIN COSTS RELATED TO THE DEANNEXATION OF CERTAIN AREA FROM THE EAGLE RIDGE REVENUE ALLOCATION AREA AND THE ESTABLISHMENT OF A NEW URBAN RENEWAL/REVENUE ALLOCATION AREA; DIRECTING THE CHAIR OR VICE-CHAIR AND SECRETARY 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 CHANGES, SUBJECT TO CERTAIN CONDITIONS; AND PROVIDING AN EFFECTIVE DATE. Larsen moved to approve Resolution 2023-19 Memorandum of Understanding between the US Development, Inc, and the Idaho Falls Redevelopment Agency as read, Hally seconded the motion and the motion passed unanimously. 5. Resolution Approving the First Amendment to the Owner Participation Agreement With Eagle Ridge Development, LLC to Remove and Replace the Legal Description and Map of the Site. Conrad directed the Board to Exhibit C (page 60) to familiarize with the geographic area for this Agenda item and the next Agenda item, as they are related. Radford asked Conrad to consider both Agenda items together to save time. Conrad stated that Roundhouse development proposed a multi-family housing development south of Pancheri and north of South Utah, above the parcels outlined in Blue on the map. The northern part of the Eagle Ridge Revenue Allocation Area is outlined in orange. The purple area is the area that is not within a revenue allocation area. The Eagle Ridge Development OPA that is currently in place addressed the public infrastructure improvements along Snake River Parkway and a little portion of South Utah, was addressed in the OPA with Eagle Ridge Development. The improvements were made and the actual costs that were eligible for reimbursement were memorialized in a note, and there have been 3 payments made against that note, based on revenue allocation proceeds. The OPA contemplated reimbursement from this site, (orange area). The developer came and indicated it had a purchase right for that parcel to develop multi-family housing and that required the Agency to have a conversation with the existing developer under the OPA to determine if there is a willingness to release that portion of the site from the OPA to allow the excised parcel’s tax revenue generating from the new development to be placed to this new developer Roundhouse. The parcel is split with part of it being in a revenue allocation area, and part of it is outside of the revenue allocation area. They have talked with the County and developer in terms of site plan to understand how the ultimate valuations would work and what would drive the increment to be available for reimbursement. Conrad stated there was a meeting that occurred where the existing developer under the OPA did agree to release the property. Before the Board is two action items including: First Amendment to the OPA, which amends the description of the site that is pledged for reimbursement of the note and clarifies which parcels are generating revenue to be paid back to the developer, and second a new OPA with Roundhouse to develop the multi-family housing and to be reimbursed for certain public infrastructure that will help the entire Eagle Ridge Area. Conrad showed on Exhibit D the revised area under the existing OPA is outlined in yellow. Radford stated that Attachment 3 to the new OPA with Eagle Ridge Project LLC shows the second portion north of the southern portion. Radford stated that the Eagle Ridge Development LLC has agreed to give up its right to reimbursement on a portion of that property so Roundhouse can get the property and do an OPA with the Agency. Gazdik clarified that all the property for Roundhouse developer is not being put into the District, as there is a portion to the north that is not included in any district. Radford asked how that portion has to be handled when Roundhouse is building. Radford moved to Attachment 3 of the OPA with Eagle Ridge Project LLC. Conrad stated that the area immediately south of Pancheri Drive has had discussion as to whether there should be an annexation to the Eagle Ridge Project Area to take in the full parcel, and in the end, it didn’t make sense in terms of potential revenue generation for that portion that is already within the existing revenue allocation area. The decision was made by the developer not to proceed with seeking an amendment. There are separate tax areas and tracked separately by the County. The new development that is outside of the district will not generate revenue for the Agency. It just goes on the tax rolls and flows into the valuation calculation for the overlapping taxing district. Radford confirmed that the developer (Roundhouse) will be building on the non-reimbursable area, and that is understood and put into the developer’s calculations. Gazdik clarified that there is not any crossover between the two parcels. Conrad stated that the site plan does contemplate buildings that will be partially within and outside of the revenue allocation area, and that created a delay in moving forward, because they wanted to have an understanding from the County as to how that would be handled, and the way it is addressed, is wherever the majority portion of the improvement lied is where it will be tracked. So, if more than ½ of the improvement is within the revenue allocation area, that value will be included in the revenue allocation area. It only impacts 2 or 3 buildings, and the developer is aware. Larsen asked about the funds coming from the portion that Roundhouse will develop does not go and pay against the obligation for the original developer, so where do the funds go. Radford stated that this agreement by doing two OPA’s with two different developers, the developers are agreeing to a line, and above this line Eagle Ridge Project LLC will get the reimbursement, and below this line, the old Eagle Ridge Development LLC will get the reimbursement, and the portion that is not within Eagle Ridge Revenue Allocation District, no one will get any reimbursement. Stevens stated that the original LLC currently owns the land, so they will benefit from the land sale, and they will be obligated to make the improvements otherwise, if Roundhouse doesn’t make the improvements. It is a win/win and changing who is responsible for making the improvements and who carries the risk of repayment. Ultimately there is not a lot of change in the overall benefit or harm to the City other than there will be some good infrastructure built. Radford stated that Eagle Ridge is being split into three parts 1) US Development is taking a portion; 2) the original development with a new hotel; and 3) Roundhouse portion. Gazdik confirmed that the feasibility work that was done for Roundhouse incorporated only the buildings that are on that specific piece of property. Radford stated that feasibility was determined a long time ago, that the area was eligible, but reimbursable under an OPA it has been determined by the two developers and Roundhouse has agreed that the portion available in pink is sufficient. Stevens stated that Eagle Ridge originally in their division 3 made the improvements. In the original agreement, they are responsible for more improvement than what has been done. Roundhouse will already have construction on site, so it makes sense to have Roundhouse take the County road up to the City Standard and Eagle Ridge Project will go up to make the entire connection to get the full City road, and they will use the money allocated within the outlined area. The same thing happened on South Utah, as there is a gap with City street and County road section. Roundhouse’s primary entrance to their development will come through and so they will improve the sections to City standards. Stevens clarified that the improvement requirements remain the same, and it is changing hands as to who has to provide the improvements. Radford stated that they need to look at the Resolutions separately, but it is contingent that if they agree to one, they have to agree to the other, or no agreement. Radford asked Conrad to read Resolution 2023 – 20 and it will be voted on, and then read Resolution 2023-21. Conrad confirmed that the First Amendment has been fully reviewed by Eagle Ridge Development and they have signed off on the First Amendment and the OPA with Eagle Ridge Project/Roundhouse has been reviewed and signed off by that developer. Conrad read Resolution 2023-20 by Title. A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF IDAHO FALLS, IDAHO, ALSO KNOWN AS THE IDAHO FALLS REDEVELOPMENT AGENCY, AUTHORIZING AGENCY TO ENTER INTO A FIRST AMENDMENT TO OWNER PARTICIPATION AGREEMENT WITH EAGLE RIDGE DEVELOPMENT, LLC; AUTHORIZING THE CHAIR OR VICE-CHAIR AND THE SECRETARY OF AGENCY TO EXECUTE AND ATTEST SAID AGREEMENT AND ANY NECESSARY DOCUMENTS, SUBJECT TO CERTAIN CONDITIONS; AUTHORIZING THE CHAIR, VICE-CHAIR, OR ADMINISTRATOR TO TAKE APPROPRIATE ACTION TO IMPLEMENT THE AGREEMENT AND MAKE ANY NECESSARY TECHNICAL CORRECTIONS TO THE AGREEMENT SUBJECT TO CERTAIN CONDITIONS; AUTHORIZING THE APPROPRIATION OF FUNDS PURSUANT TO THE AGREEMENT; AND PROVIDING FOR THIS RESOLUTION TO BE EFFECTIVE UPON ITS PASSAGE AND APPROVAL Larsen moved to approve the Resolution 2023-20 Approving the First Amendment to the Owner Participation Agreement With Eagle Ridge Development, LLC to Remove and Replace the Legal Description and Map of the Site, Hally seconded the motion and the motion passed unanimously. 6. Resolution Approving the Owner Participation Agreement with Eagle Ridge Project, LLC Regarding a New Project in the Eagle Ridge Project Area. Conrad read Resolution 2023-21 by Title. A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF IDAHO FALLS, IDAHO, ALSO KNOWN AS THE IDAHO FALLS REDEVELOPMENT AGENCY, AUTHORIZING AGENCY TO ENTER INTO AN OWNER PARTICIPATION AGREEMENT WITH EAGLE RIDGE PROJECT, LLC; AUTHORIZING THE CHAIR OR VICE-CHAIR AND THE SECRETARY OF AGENCY TO EXECUTE AND ATTEST SAID AGREEMENT AND ANY NECESSARY DOCUMENTS, SUBJECT TO CERTAIN CONDITIONS; AUTHORIZING THE CHAIR, VICE-CHAIR, OR ADMINISTRATOR TO TAKE APPROPRIATE ACTION TO IMPLEMENT THE AGREEMENT AND MAKE ANY NECESSARY TECHNICAL CORRECTIONS TO THE AGREEMENT SUBJECT TO CERTAIN CONDITIONS; AUTHORIZING THE APPROPRIATION OF FUNDS PURSUANT TO THE AGREEMENT; AND PROVIDING FOR THIS RESOLUTION TO BE EFFECTIVE UPON ITS PASSAGE AND APPROVAL. Hally moved to approve Resolution 2023-21 Approving the Owner Participation Agreement with Eagle Ridge Project, LLC Regarding a New Project in the Eagle Ridge Project Area, Gazdik seconded the motion and the motion passed unanimously. 7. Northgate Mile Update. Sanner stated that the MOU was signed and approved on 5-18-23 and the eligibility went to the City Council on 10-26-23. After the Eligibility Report was approved, there was word from the developer that they did not want to move forward, and staff will be reaching out to property owners to discuss broader potential. Radford asked Catherine Smith if she has been in contact with other property owners in the area. Catherine Smith stated that there is still interest with one of the landowners and she will follow up with Sanner and tag team with the property conversations. 8. Yellowstone Square Update. Sanner stated that the MOU was signed in July, 2023 and they took the Eligibility Report with the Northgate Mile, and they were both approved and passed by the City Council on October 26, 2023. Yellowstone Square has deposited their first payment. Cassie Auten indicated that Yellowstone Square paid in June the amount of $5,000. Stevens indicated that they are waiting on the remaining balance to be paid by the applicant on both of the phase one eligibilities. Once the deposit is made to move the plan forward. Renee Magee stated that she spoke with Steve a few times and has emailed asking for a timeline. Magee stated that Steve indicated that they should start demolition in the first part of January to begin the Starbucks building and they are planning to have the Pony Express Car Wash started Spring 2024 and planning for a warehouse to be constructed this summer. Magee asked Steve about the second payment, and he told her that the City should be receiving it within a week. Steve has some additional costs that he did not give to Magee originally, and she has asked for those costs to replace and repair portions of the sidewalks and the driveways in the public right of way and has asked for demolition costs and has asked Steve to update the costs that were given as they were from May, 2023. Radford asked what is next. Sanner indicated that after they receive the next payment, they can prepare the plan. Magee indicated that Steve asked her some questions, and she answered the questions, but suggested that Steve confirm the answers through Conrad. 9. Stanley Boge Update. Sanner stated that the MOU was October, 2022 and the Eligibility Study was completed and approved in January 2023. The District just went through the City Council and was approved by the Planning Commission on 10-26-23. The deposit balance was sent on 4-17, but they haven’t received payment yet. Cassie Auten indicated that they have received one check from Tree Spring Partners that was dated April, 2023. Part of that amount went to the eligibility report and part went to the completion of the urban renewal plan. They have sent $19,000 and that has been deposited. Radford asked what the next step would be for Stanley Boge. Sanner stated that the plan has now been approved. Stevens indicated that the phase III owner participation agreement would need to be prepared. Conrad stated that they have not drafted an OPA for the Stanley Boge area. Conrad stated that the plan was just approved, and the ordinance summary was published, and the plan was recorded. The City just recently sent out all the post approval transmittals to the overlapping taxing districts and the State Tax Commission. Conrad will begin work on the OPA, but they are contemplating bringing that to the Board in January. Stevens and Sanner agreed that it should be available for the January meeting. Gazdik asked about the Northgate Mile Project, and asked if the Agency incurred any expenses, or did the developer pay any obligations that were outstanding with the Agency. Auten stated that the only other check that was received besides Stanely Boge and Yellowstone, was one from Mellow R Holdings, and that is not Northgate. Gazdik asked if they were obligated to pay anything to get the process to the point it is at now. Stevens confirmed that they did a $5,000 deposit to kick it off. Auten stated she would review what money she received. Radford asked Conrad about the MOU. Conrad was pulling it up, and she thought that they paid the preliminary eligibility study down payment, and she will follow up with Auten. 10. RAI and Legislative Update. Conrad stated that they are preparing for the upcoming Legislative Session. The Agency members are starting to submit success stories as well as increasing conversations between Agency’s and Legislators in providing educational materials and opening lines of communication. There is nothing specific to report in terms of legislation or concepts. Larsen moved to adjourn the meeting, Gazdik seconded the motion passed unanimously. Next Regular Meeting: December 21, 2023. Radford adjourned the meeting at 1:00 p.m. Respectfully Submitted: Beckie Thompson