Idaho Falls Redevelopment Agency

IDAHO FALLS REDEVELOPMENT AGENC Y P.O. BOX 50220 IDAHO FALLS, ID 83405 December 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, Tom Hally, Brent Thompson Members Absent: Chris Harvey, Jon Walker, Terri Gazdik Also Present: Wade Sanner, Executive Director; Ann Peterson; Brad Cramer; Megan Conrad, Esq. (via Teams); Renee Magee (via Teams) and interested citizens. 1. Modification to Agenda. None. 2. Approval of Minutes November 16, 2023. Thompson moved to accept the Minutes for November 16, 2023, Hally seconded the motion, and the motion passed unanimously. 3. Approval of Expenditures and Finance Report. Lee Radford presented the Finance Report dated December 21 2023. In the River commons Area: $100.00 to Rebecca Thompson for transcription of Minutes; $1,850.00 to Renee Magee for feasibility report for Yellowstone Project; $2,805.00 to Elam and Burke for legal services; $1, 650.00 to City of Idaho Falls for Administrative Services; $2,600.00 to RAI. In Eagle Ridge $2,491.00 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. Larsen moved to approve the Finance Report dated December 21, 2023, Thompson seconded the motion and the motion passed unanimously. 4. Approval of Task Order #4 Authorizing Brad Cramer to Prepare an Updated Economic Feasibility Study for the First Amendment to the Eagle Ridge Urban Renewal Plan Deannexing Certain Parcels from the Revenue Allocation Area. Radford indicated that this is the split that was agreed to move forward last month and it now requires an economic feasibility study. Conrad stated that there is a Consultant Agreement with Brad Cramer dated August, 2023. Pursuant to that Agreement tasks orders can be issued to direct Cramer to do certain identified scopes of work. Task Order #4 is related to the deannexation of parcels from the existing Eagle Ridge Revenue Allocation Area. That scope of work to accomplish the deannexation is a Plan amendment and there will need to be an updated economic feasibility study and that data will look at the revenue allocation area proceeds to be accrued through the remaining life of the District and the remaining projects within the remaining portion of the project area and that data will provide transparency to the remaining years of the project area. The First Amendment will start this effort and this is anticipated to be completed by the fourth Monday in July with the updated Economic Feasibility Study being presented in February. The scope of work is estimated to cost $6,000 at $130/hour. Conrad stated that because they are taking out of the District potentially revenue generating parcels, they need an analysis to provide an updated projection of what will be generated through the life of the District. Thompson moved to approve Task order #4 Authorizing Brad Cramer to prepare an Updated Economic Feasibility Study for the First Amendment of the Eagle Ridge Urban Renewal Plan Deannexing Certain Parcels from the Revenue Allocation Area, Hally seconded the motion. The motion passed unanimously. 5. Approval of Task Order #5 Authorizing Brad Cramer to Prepare Eligibility Report for the Proposed Snake River West Project. Conrad explained that pursuant to the Consultant Agreement, this Task Order #5 will direct Brad Cramer to review the specific geographic area and determine if the parcels meet the statutory conditions of deterioration that warrant the establishment of a revenue allocation area. This is for the proposed Snake River West Area, which is the portion that is being deannexed from the existing Eagle Ridge Project Area and the addition of adjacent property. This draft will be available for January draft review and February meeting approval, and City Council approval in March. Moving forward is contingent upon City Council. They have not done a second scope related to the economic feasibility for the Snake River West, as this is the first phase establishing a new project area. The estimated cost is $4,500 at $130/hour. Radford confirmed that this is the new part, that will be apartments. Conrad agreed that it is the new area. Larsen asked if it is the 272 new apartments, Radford agreed. Thompson moved to Approve Task Order #5 Authorizing Brad Camer to Prepare Eligibility Report for the Proposed Snake River West Project, Larsen seconded the motion. The motion passed unanimously. 6. Owner Participation Agreement with 2700 Boge Ave LLC Regarding the Proposed Industrial Business Park Project Within the Stanley Boge Revenue Allocation Area. Conrad went to page 25 of the OPA that shows the map of the Stanley Boge Project Area. North Boulevard on the western boundary, north of union pacific, and Boge Ave, goes through the project. Attachment 3 page 28 of the OPA shows where the project site is located on the northern end of the project. There is a preliminary concept design showing a three phase build out. This is a standard OPA form. The proposed eligible costs are centered around blasting, excavation, and fill. Phase I will move forward and Phase II and III will be dependent on full lease of Phase I. First Phase will commence in April 2024 (at earliest). They are working on designs and will be submitting documents to the Planning Commission soon. Conrad will be making changes to the draft OPA based on those changes. The reimbursement procedure on Page 8 of the Agreement shows that the reimbursement doesn’t commence until CO for the entire first phase of the private development, then there is completion of all Agency funded eligible improvements, execution of the Confirmation of Reimbursement Form for the completed scope of work, completion within a certain time period and the fact that the revenue allocation proceeds from the first phase of the development are actually received by the Agency. There is some lack of certainty as to whether they will mobilize and do all of the blasting and excavation and fill for all three Phases at once or undertake each scope as they take on each Phase. The reimbursement procedure will be on completion of the Agency Funded eligible improvements related to the phase that is being undertaken. If they take all off the work contemplated for blasting and excavation but only build Phase I, they are aware they might not be fully reimbursed by the end of the district, so there is incentive to have all three phases built out quickly. The developer had a question regarding planning cost. The MOU had estimated planning costs at $38,000 and now that they are towards the end of the OPA negotiations, they will do an accounting to determine actual planning costs and that will be memorialized in a confirmation of reimbursement form and those planning costs are not reimbursed until there is taxable development on the site. The planning costs are reimbursed at the same methodology as the reimbursement obligation under the Agreement, if there is not private development on the site the planning costs will not be reimbursed. All three phases built out are anticipated to be $11 million in new development taxable value, and the reimbursement rate is 75% of the TIF generated from the site. Radford confirmed that if they incur all of the blasting cost, but only build the first building they will only get the revenue from one building. They could blast only what is needed for Phase I and get revenue to cover that. Conrad stated that part of the comments and changes to the Agreement will further outline the phased approach, and they could break out the eligible project costs and do those by phase, and that concept needs to be better defined in the Draft OPA. Thompson asked if the $38,000 is reimbursable up front when funds come in. Conrad stated that the $38,000 will be less once they get through an internal audit and they will memorialize that amount in the confirmation of reimbursement form. The costs are reimbursed using the same methodology as the reimbursement of the reimbursement obligation of the actual eligible costs. They will need CO on the first Phase and the Agency will have to be receiving revenue from the development. Those costs will be first paid out because it will be the first confirmation of reimbursement form, but if they do not move forward with development, they do not get paid for the planning costs. Thompson confirmed that Engineering will approve hard costs that are reimbursable per phase. Conrad agreed that as they move through their design and get better numbers, they will have a better understanding of the costs. They are estimated at $885,000 and that could go up or down based on the hard bids they get. Conrad stated that once they perform the scopes of work they have to submit cost documentation and that is reviewed by City Staff for commercial reasonableness, they make sure the costs were incurred. Larsen asked if the first Phase ends up costing more than a third of the total, it doesn’t change the grand total that can be reimbursed. Conrad agreed and stated that with this OPA they have to go off of estimates, and it is a do not exceed amount that can be broken out in Phases. Conrad stated that if their ultimate engineers estimates are higher they would have to come back to the Board and ask for the Board to increase the OPA do not exceed amount. Conrad stated that this is a draft and there will be changes and this will come back in January or February. 7. RAI and Legislative Update. Conrad stated that RAI continues to receive success stories that are being compiled and shared with certain organizations to help drive the conversation with Legislators and others. There is likely going to be legislation that will impact urban renewal and they are working to find replacements to the program. They are continuing to monitor. Hally stated that it is election year, and these ideas take time, so he thinks a lot of the things that are controversial will drift and not pass. Conrad agreed and there is a drive to have this be a shorter session and it is hard to know the timing on when legislation will be addressed. Hally moved to adjourn the meeting, Thompson seconded the motion passed unanimously. Kirk Larsen will now be the City Council. Hally stated that someone will be appointed, and he has been on City Council for 20 years. He has been on the Board for 1.5 decades. Thank you for your service, Tom Hally Next Regular Meeting: January 18, 2024. Radford adjourned the meeting at 12:30 p.m. Respectfully Submitted: Beckie Thompson