Idaho Falls Redevelopment Agency

IDAHO FALLS REDEVELOPMENT AGENC Y P.O. BOX 50220 IDAHO FALLS, ID 83405 February 15, 2024 Regular Meeting Minutes Council Chambers Call to Order: Lee Radford called the meeting to order at 12:00. Members Present: Lee Radford, Chris Pelkola, Lisa Burtenshaw, Chris Harvey, Brent Thompson, Terri Gazdik Members Absent: Jon Walker Also Present: Wade Sanner Executive Director; Ann Peterson; Brad Cramer; Meghan Conrad, Esq. (via Teams); Brian Stevens, Cassie Auten, Catherine Smith, and interested citizens. 1. Modification to Agenda. None. 2. Approval of Minutes January 18, 2024. Thompson moved to accept the Minutes for January 18, 2024, Gazdik seconded the motion, and the motion passed. 3. Approval of Expenditures and Finance Report. Lee Radford presented the Finance Report dated February 15, 2024. In the River Commons Area: $112.50 to Rebecca Thompson for transcription of Minutes; $747.50 to Brad Cramer with Perspective Planning and Consulting; $4,343.00 to Elam and Burke for legal services; $1,960.00 to City of Idaho Falls for Administrative Services; $476,069.86 to BV Lending for OPA payment; $9,387.25 to Bandon River for OPA payment. In Eagle Ridge Area: $1,300.00 to Brad Cramer with Perspective Planning and Consulting; $300.00 to City of Idaho Falls for administrative services; $27,516.03 to Eagle Ridge Development, LLC for OPA payment. In Jackson Hole Junction: $91,649.73 to Jackson Hole Junction for OPA Payment; $300.00 to the City of Idaho Falls for Administrative Services. Thompson moved to approve the Finance Report dated February 15, 2024, Gazdik seconded the motion and the motion passed unanimously. 4. Resolution to Accept the Snake River West Eligibility Study for the Proposed Snake River West Urban Renewal District. Cramer indicated there were no changes. Thomspon suggested that if this is a current document, they need to make changes on page 5 to correct the current members of the Agency. Radford and Burtenshaw have recused themselves in this matter. Thompson chaired this agenda item. Thompson asked for comments on the Eligibility Study. Conrad’s call was dropped. Thompson stated that pursuant to the report this area qualifies under many criteria. Conrad resumed her call for the meeting. Conrad asked if she was directed to change the constitution of the Board Members. Thompson stated that it would be appropriate since this is a current document. Conrad stated that at the time of consideration of the Resolution, please note the change that will be made to the study and that will direct staff to make the change. Pelkola asked if Radford could sign as the Chair, since he recused himself. Conrad stated that they will change it to have Thompson Vice-Chair sign it. Conrad read the resolution 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 SNAKE RIVER WEST 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 indicated that the technical changes would include the change in the Constitution of the Board at the time of the vote and technical changes that staff should make. Pelkola moved to approve the Resolution to Accept the Snake River West Eligibility Study for the Proposed Snake River West Urban Renewal District, Harvey seconded, Radford called for roll call vote: Pelkola, yes; Burtenshaw, abstain; Harvey, yes; Thompson, yes; Gazdik, yes; Radford, Abstain. The motion passed. Radford continued chairing the meeting for the remainder of the agenda items. 5. Resolution to Approve Assignment of Owner Participation Agreement with Eagle Ridge, LLC for Eagle Ridge Apartments to Project Lender. Radford feels it would be helpful to have a map for everyone to look at so they can see the assignment. Conrad stated that in the packet there are documents related to the new Roundhouse Project that will straddle the Eagle Ridge Revenue Allocation Area and included area outside of the Revenue Allocation Area (northeast section of existing project area). They have worked to amend the existing OPA with the original developer to clarify what the definition of site and what will generate revenue to reimburse the developer over the life of the district. They entered into a new OPA for the new multi-family development. The lender has asked for collateral and security from the developer, so in the event of default, if the developer had performed and was entitled to receive payment pursuant to the OPA, the funds would be paid thereafter to the lender. The original OPA does contemplate the ability to assign. The original scope of the assignment was broad so they clarified there are trigger points so that the lender cannot come in and claim the ability to receive revenue allocation funds when trigger funds haven’t been met. There is a proposed final in the packet and Conrad is asking for a resolution to approve the assignment and give the Chair ability to work out final comments and edits to get it into final form, so they wouldn’t have to come back to the board. Radford wants to make sure that everyone is clear. Page 2, Attachment 5 of Eagle Ridge Economic Feasibility Study shows the map of the area. Radford stated that Eagle Ridge Project Development, which had the original OPA with, agreed that they would sell a portion of the land to a new developer to build an apartment complex. The new developer agreed as a condition to buy the land that they would split with the original project owner the TIF revenue. The owner of the new area can develop the apartments and they will get the taxes that are generated from the apartments to help with the infrastructure they are doing for the apartments. The money will now go to the new developer Eagle Ridge Property Project Developer, LLC. The bank that is financing the apartments for the new developer and wants to make sure the money will go to the bank, instead of the developer, and the developer approved of that. The Agency tries to not get involved in financing for projects, as the developer can get it cheaper, faster, more efficiently. Sun West Bank is providing financing, and they want a surety to get the TIF revenue. Thompson clarified that they are redirecting the flow of the funds from the TIF. Radford agreed it will go Urban Renewal Agency to Sun West Bank to pay the developers obligation. Conrad stated that the lender only steps in in the event of a default. Radford clarified that they will only send checks to Sun West Bank if there is notice that there has been a default on the part of the borrower. Thompson clarified that there are no significant problems or consequences for the Agency. Radford stated that the only obligation is to comply with the agreement. Burtenshaw asked about a question in the map discrepancy along Utah showing a little triangle. Brian Stevens stated that when he first drew the shape, he didn’t realize that there was sidewalk on the one side, so the discrepancy has been fixed in a second image. Conrad clarified that they are close to final form but have not received final sign off from Roundhouse and Sun West Bank, but wanted to get it through the Board so they are not the delaying party. If they choose, approve the assignment and direct Chair to sign once it is final, subject to technical changes and corrections. Conrad read the resolution 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, APPROVING AN ASSIGNMENT OF OWNER PARTICIPATION AGREEMENT BETWEEN EAGLE RIDGE PROJECT PROPERTY OWNER, LLC AND SUNWEST BANK; AUTHORIZING THE CHAIR OR VICE-CHAIR AND THE SECRETARY OF AGENCY TO EXECUTE AND ATTEST A CONSENT TO ASSIGNMENT OF OWNER PARTICIPATION AGREEMENT AND ANY OTHER NECESSARY DOCUMENTS, SUBJECT TO CERTAIN CONDITIONS; AUTHORIZING THE CHAIR, VICE-CHAIR, OR ADMINISTRATOR TO TAKE APPROPRIATE ACTION TO IMPLEMENT THE ASSIGNMENT AND CONSENT AND MAKE ANY NECESSARY TECHNICAL CORRECTIONS TO THE ASSIGNMENT AND CONSENT SUBJECT TO CERTAIN CONDITIONS; AND PROVIDING FOR THIS RESOLUTION TO BE EFFECTIVE UPON ITS PASSAGE AND APPROVAL. Thomspon moved to approve the Resolution to Approve Assignment of Owner Participation Agreement with Eagle Ridge, LLC for Eagle Ridge Apartments to Project Lender, Burtenshaw seconded the motion. Radford called for roll call vote: Pelkola, yes; Burtenshaw, yes; Harvey, yes; Thompson, yes; Gazdik, yes; Radford, yes. The motion passed. 6. Review of the Draft First Amendment to the Urban Renewal Plan for the Eagle Ridge Urban Renewal Project. Conrad asked for a map of the deannexation area for the screen visual. Conrad stated that as part of the discussion with the developer for the property along Pioneer Road, that was outside of the revenue allocation area, there were discussions, on how to incorporate this project into a district, and they chose to deannex the triangle piece that contains the single family residence and a cherry stem of Pioneer Road from the existing area, and combine the property to be developed into the multi-family housing project. The first phase is the formal amendment to the existing Eagle Ridge Plan to take that property out. The Eligibility Study has been addressed earlier in the meeting. The Eligibility piece is moving simultaneously with the deannexation. The deannexation is a formal plan amendment to the exiting Eagle Ridge District. It is the same process that they go through for a new plan, except no eligibility study. The Agency Board will consider the first amendment, the City would transmit the amendment and attachments to overlapping taxing district, 30 days’ notice, and publication for hearing with City Council and City Council would consider the First Amendment at a public hearing. This is the early stages of the first amendment. There is a draft narrative First Amendment in the packet to make minimal changes to the existing plan. They provide the surveyed map and legal for the area coming out, and an updated economic feasibility study to identify the deannexation will not have long term financial impact on the revenue allocation area. The updated economic feasibility study will run an updated projection of revenues through the life of the District and list the intended projects for the area. Burtenshaw asked if they reestablish the base in the feasibility study. Conrad stated that the existing district, if it has property pulled out, it will not trigger a reset of the base in the existing revenue allocation area. The existing properties in the existing Eagle Ridge Revenue Allocation Area will remain the same. There is language in the statute for a pre-2016 plan that amendments do not reset the base. Post 2016 Plans and from a policy perspective, deannexation is not considered a modification that would reset the base in a post 2016 plan. The parcels coming out will have the base reset to the current tax value to be put into the new area. Radford stated that the bit of Pioneer in front of the storage units will likely be developed by the new district. Radford stated that the new amended urban renewal plan does add some things from Roundhouse and Radford would like that explained. Conrad stated Cramer has relied significantly on the existing developers within the area. Radford asked what Roundhouse is doing that adds up to $1.5 million. Cramer stated that Roundhouse will not do a lot in terms of public infrastructure. 288-unit multifamily development and 75% of the tax revenue with a project total of $50 million in valuation upon completion, that value is lower than what they originally submitted. On the south boundary that encompasses a portion of Utah Ave., which will be Roundhouse’s responsibility for construction, and the northwest section of Pioneer has improvements that need to be made. Radford stated that $50 million will generate $231,000.00 a year and will pay off the $1.5 million quickly. Cramer stated that the OPA contemplates that the project will take 48 months, and the project comes on the tax roles and in the conservative estimates it doesn’t pay off the obligation for the OPA. Cramer looked again and assumed that there will be COs issued throughout the 48 months, and Cramer assumed that 1/3 of the project would be completed earlier (every year), and if COs are issued throughout the project, the entire project can be paid off with money to spare ($256,000). Cramer stated that it will depend on when properties come onto the tax rolls. Radford stated that there are portions of Pioneer and Utah that will be developed by the new developer. Burtenshaw asked in a development agreement when would the roads be built, and which would be built first. Stevens stated that they will operate with a phasing plan, and it will depend on where they place the front door for the beginning phase. Stevens stated that the developer will pick how they will phase out the project. Burtenshaw suggested that could be why the total amount doesn’t come into effect, as expense and revenue are coming online at different times. Cramer stated that unless the OPA is different, there is no obligation to pay the revenues until the City has accepted and CO’s have been issued. Cramer stated that it will be staggered. 7. Tentatively Approve the Draft of the 2023 Annual Report, Schedule Meeting to Make Public Comment and Authorize Publication of the Meeting Notice. Wade Sanner drafted the document and indicated there will be a more final document in the March meeting. Sanner stated that it will be sent off to look more professional, and they are waiting on numbers to be updated. Sanner asked the Board what they want to see in the Report. Sanner asked if Northgate Mile should be included, as not much has been done with it. Sanner stated that there are other districts in the pipeline and should he include those districts. Radford asked about the vendor for the final product. Cramer indicated it is IE Productions. Radford stated that Northgate Mile has been approved by City Council for the Eligibility Report, but no plan has been adopted as the owners have stated that they are not moving forward. There are other owners in the area that could use the foundation that has been created and could be moved forward. Radford feels they could include that in the report. Radford stated that Anderson Bush needs to be included as it is going forward. Radford stated that Pancheri East needs to be included. Radford stated that Stanley Boge needs to be included as it is approved. Radford stated that Yellowstone Square needs to be included, they have an eligibility report, and a plan to move forward. Thompson asked if they should make a generic comment about others that are in progress. Sanner stated that they have Snake River West included as they are working on it even though it bleeds into 2024. Radford agreed they should include where they are at with Snake River West. Radford wants to put things that they are working on and where they left off, so if someone wants to pick up where they were left off and complete the plan process. Sanner didn’t know if there was a standard in the past of what was included. Radford stated that it is a good question to discuss what should be included. Radford provided the 2022 Report so Legislators could see it in a meeting this week. The Report shows effort that is being made. Sanner stated that the report needs to be approved in the next meeting. Conrad agreed that they will take direction on finalizing the report today, and next month there will be outreach for the public to make public comments, and formal consideration will be at the March meeting. Burtenshaw wants a strike out changing the (4) urban renewals districts since 1988 in the executive summary. Radford stated that in the past years they have not included maps in the final project, but it might be helpful to include maps. The Board agreed that maps are helpful to show people where the projects are located. Sanner agreed to incorporate maps. Radford feels the website and the report are very effective. Sanner offered to add more to the website to fit whatever the Board wants. Pelkola would like her middle name (Pelkola) referenced in the report as there are many Chris Lee. Pelkola would like it referenced as Pelkola for minutes as well. 8. Urban Renewal Workshop, Wednesday, March 27- Thursday March 28, 2024, in Coeur D’Alene, ID. Sanner indicated that on March 27 8:30 -4:30 March 28th is 8:30 - 2:30 at Kootenai County Building and if the Board members are interested in attending, he wanted to give them the information. Sanner will be there. The fee is $250 per person with a March 15 registration deadline. Pelkola asked if there is another training as she will have a conflict with the March date. Sanner is not aware of another currently, but they do them throughout the year. Burtenshaw is unavailable to attend the March training. 9. RAI and Legislative Update. Conrad stated there has been a draft of some potential legislation that would impact urban renewal to use the tool for economic development purposes. The same Bill has a replacement tool that is like a Community Infrastructure District which is also similar as a Local Infrastructure District, Local Improvement District, and Business Improvement District. Those are all premised on being financing tools and provide the ability to overlay an assessment or issue bonds and the proceeds would fund needed public infrastructure to support industrial or commercial projects and exclude residential. There is still a draft form, and it has not been formally released and put into an RS Form. An RS form is considered by a committee for print. It is premature still in actively providing comment. The challenge is real, and the amendments do significantly restrain the ability of an urban renewal agency and would have precluded many of the project areas from moving forward. Key take away points are there is no stake holder input that has used the CID tool when the discussion was occurring. The tools are not comparable. The problem is with discussions as to whether the tool is appropriate as a replacement for urban renewal. Conrad stated that it is important to reach out to community members who use the tool and urge them to talk to Legislators and Agency Board Members need talk to Legislators and make sure they have good information going forward. There could be misinformation out there and every community uses the tool differently, but the representatives need to understand how the tool is used in this community. Radford asked which project area would be impacted. Conrad stated that as a threshold there are limitations on the types of properties that that could be included, ag, undeveloped property and single family residential. Pelkola asked if there is a Bill #. Conrad stated that it is just a draft and not issued a Bill number until it is formally RS’d before committee and formally printed. Pelkola asked how to get in front of it as an organization. Pelkola is texting her government guy right now. Catherine Smith has been monitoring this closely and working with the Chamber of Commerce and Idaho Economic Development Association in Boise, and they are hearing all sorts of concerning details coming through the drafts. Right now, a Bill hasn’t been printed, so they need to connect with local legislators and let them know of the successes they have had and how the tool has spurred economic development and has been used well and correctly. They are looking to understand TIF as there are misinformed ideas, that local taxpayer is funding development. The Legislators don’t understand how the base tax works and how the financing is created. Smith has a meeting today with local Legislators and they are very concerned. Pelkola asked who is bringing the Bill forward. It is important to House Speaker Mike Moyle. They are not sure what committee, but likely Barb Earhart with local government. Smith stated that they have thought about organizing a tour on the weekend for local Legislators to see what urban renewal has done in this area. Conrad stated that House Local Government often times has urban renewal bills allocated to that committee and sometimes they end up in House Reven Tax are most likely committees. Radford provided an email with a summary of all the districts. Smith suggested sending it out to the full board. Radford will send it to the entire board through Ann. Pelkola moved to adjourn the meeting, Burtenshaw seconded the motion passed unanimously. Next Regular Meeting: March 21, 2024. Radford adjourned the meeting at 1:00 p.m. Respectfully Submitted: Beckie Thompson