Idaho Falls Redevelopment Agency

IDAHO FALLS REDEVELOPMENT AGENC Y P.O. BOX 50220 IDAHO FALLS, ID 83405 June 20, 2024 Regular Meeting Minutes Council Chambers Call to Order: Lee Radford called the meeting to order at 12:00. Members Present: Lee Radford, Terri Gazdik, Lisa Burtenshaw, Jon Walker. Members Absent: Brent Thompson, Chris Harvey, Chris Pelkola Lee Also Present: Wade Sanner, Meghan Conrad, Esq. (via Teams); Renee Magee (via Teams); Brian Stevens, Cassie Auten, and interested citizens. 1. Modification to Agenda. None. 2. Approval of Minutes May 16, 2024. Gazdik moved to accept the Minutes for May 16, 2024, Burtenshaw seconded the motion, and the motion passed unanimously. 3. Approval of Expenditures and Finance Report. Lee Radford presented the Finance Report dated June 20, 2024. In the River Commons Area: $37.50 to Rebecca Thompson for transcription of Minutes; $942.50 to Brad Cramer for work on River Commons Close Out Analysis; $2,414.60 to Elam and Burke for legal services; $2,408.65 to City of Idaho Falls for administrative services. In Eagle Ridge Area: $1,386.00 to Elam and Burke for legal services; $200.00 to City of Idaho Falls for administrative services. In Jackson Hole Junction: $50.00 to Elam and Burke for legal services; $200.00 to the City of Idaho Falls for administrative services. Burtenshaw moved to approve the Finance Report dated June 20, 2024, Walker seconded the motion and the motion passed unanimously. 4. Review of the Draft Economic Feasibility Study and Urban Renewal Plan for Yellowstone Square Urban Renewal Project. This item is only for discussion. Radford will recuse himself if there is an action for this item. Renee Magee is present via Teams. Magee stated that this is not in a power point, but in a general draft, as they are trying to spur discussions with the developer, engineer, and Board Members. After recent discussions they anticipate higher cost estimates for public utilities on site, additional projects including rock removal, blasting, excavation, repair or replacement of curb and gutter, sidewalks, and driveway entrance to public rights of way, and potentially an additional development. They are reaching out to City of Idaho Falls to see if there are any other projects for this area that may fit within the projected revenues for Yellowstone Square. The Summary of Projects Table will change before the Board sees the draft again in July or August. This draft has 2 tables for revenues and expenses with a second analysis on page 12 to reflect a delay in construction and possible reduced valuations for planned improvements. The next draft will have one table for revenues and expenses, and it will reflect a new timeline for construction and estimated valuation. Magee stated that the revenues seem low, as they used to use a rule of thumb to make projections with developers when TIF was anticipated to be used. With 2023 tax levies a new 1 million development will generate approximately $8,000 in Tax Increment annually, and that only applies if the levy rate does not go down. A $4 million project will generate $32,000 in annual increment and the developer will get $24,000 annually. It takes a sizeable project to repay quickly with today’s tax levies. Radford stated that they need a bigger picture from the developer on what is needed for infrastructure and what is the anticipated development. Steve Keim and Jeff Freiberg are in the meeting to discuss. Magee doesn’t think there will be a public water line or sewer line, but a classification that says public utilities, and rock removal, and infrastructure improvements for curb, gutter, sidewalk. Steve Keim Yellowstone Management Group -developer of property. There has been an evolution and currently they are under contract for 2 developments. They are ready to initiate and slated for completion in 2025. A 3rd project surfaced and under contract indue diligence for a site by Java Express. They have identified a lateral common utility sewer line that needs to be considered and things to work out. It adds on the revenue side and is a timeline that they should be able to nail down. They are looking for a 2026 opening for the retail establishment. There is a warehouse up top and that is slated to begin this fall with 2025 completion. It has been a moving target to get estimates on rock removal and they are close to going forward with guesstimates on rock removal issues. Curb, gutter, sidewalk and new approaches will be on 2 of the 3 frontage developments. Radford asked if there will be 3 developments on frontage. Keim stated that the entrance at Tacoma Screw will be scooted back, and Pony Express Car wash will begin when they get the City approvals and adjoining that will be the 8,000-foot retail for Starbucks and other tenants, and further west on Anderson is where the new project will surface. Radford confirmed that the additional warehouse space on the northwest corner. Keim agreed that a 45,000 square foot warehouse facility. Keim stated that the rock removal is all over the area, and the rock is down about 2 feet. The parking lot is right on the rock. There won’t be any public utilities serving the building up top, but there will be public improvements on the perimeter. Radford asked if the new projects add up to $11 million. Magee stated that it doesn’t reflect the new project. Keim stated that it is $11 million on the warehouse and the first 2 buildings on the frontage, and the new development that is under contract is approximately $6.5 million. Magee stated that there is rock removal, replacement of sidewalk in the public right of way, and replacement of curb and gutter and potential for another entrance. These are costs that have been funded in the past. Magee stated that water and sewer are in the utility group. Magee added that there might be some additional improvements that would show up under the OPA. Radford asked about rock removal. Jeff Freiberg stated that they are bringing the footprint down to match the other buildings as it is currently sitting on a mound of rocks. Keim stated that the plan is to bring the plan forward in July. Freiberg will talk with the City sewer department for easements and rights of way as there are random City sewer lines that traverse the property that are not in easements. Burtenshaw asked if they are talking about active sewer lines that are in the parking lot. Freiberg stated that Yellowstone Plaza is served and drained to a lift station and from the lift station there is pressure sewer that goes to a manhole in the parking lot and gravity flows to another manhole in Anderson, and that is behind Java Express. The gravity line is right through the parcel that Keim is talking about. They need to talk to the sewer department about relocating the sewer line as the manhole is pretty shallow. The lift station will stay, and they aren’t sure yet how it will work out. Burtenshaw clarified there is a City maintained lift station in the middle of the parking lot. Magee will continue to work with Keim and Freiberg to get this draft together for July. Radford stated that they are talking about moving the meeting to July 11 for the next meeting to ensure a quorum. Magee stated that they will try for July 11, but it may go to August meeting. 5. Update on Eagle Ridge Urban Renewal District. Sanner stated that the City Council did annex the triangle piece that was part of Eagle Ridge on April 11, 2024. They can now move forward with Snake River West Urban Renewal District Eligibility Report and that was approved the same day by City Council. Sanner indicated that on June 13, 2024, the City Council approved the deannexation of the piece of Eagle Ridge and piece of Pioneer Road. They are now in the process of creating Snake River West Urban Renewal District. Radford concluded that Snake River West is ready to go forward, and Eagle Ridge is moving forward. 6. Review of Draft Economic Feasibility Study for Snake River West Urban Renewal District. Burtenshaw and Lee have a conflict on this item, and no action is needed today as it is listed as a discussion item. Conrad stated that this was in the packet last month. The deannexation was approved by City Council, and the Plan Amendment was approved, and they are now working through publication, recordation, and then formal transmittal next week. The goal is to get this completed before the 4th Monday in July and they are on target. They are now focusing on the goals of the Commission and the City within the boundaries of the proposed Snake River West. The preliminary review identified the first shot at public infrastructure improvements that may be covered by the OPA will be centered on improvements to Pioneer Road. There is opportunity for more significant public infrastructure improvements in this area. As they continue to work with the developer to refine the project list, they have added to the list a pedestrian bridge project and potential other right of way improvements. They are still coordinating the survey and mapping of this area and are trying to determine where the pedestrian bridge will cross and if it is realistic to include in this plan. They will bring this back for more conversations on potential projects and make sure that the developer, City and Cramer continue to discuss. They might be able to bring the draft plan in July, but it could slip to August. The timing is based on when map and legal can be completed. Radford asked for an explanation on the pedestrian bridge. Conrad stated that the concept is that there is potentially a need to connect over I15 to get to the event center. Burtenshaw asked if they know if this is an acceptable project for urban renewal. Conrad stated that it would be public infrastructure improvements that would fall within an acceptable project list. They are trying to identify the full scope of public infrastructure projects that the Agency or the developer can be funded through the life of the District, and because they need to be specific, they need to identify anything they might want to fund. They are trying to make sure they are encompassing the full list of projects and how they could fund those moving forward. Gazdik stated that they talked about a pedestrian bridge, but she didn’t know it was over I15 and thought it was over White-Water Drive. Radford stated that that is a discussion of the River Commons Closeout and Ball Ventures potentially is interested in doing that. Burtenshaw thought it was just a bridge over the canal. Brian Stevens stated that they were looking at this project and when he turned on Connecting Communities, it shows that there should be a pedestrian bridge over the Interstate. There could be a surplus of money if Snake River West is built according to plan and it could fund this pedestrian bridge, and ¾ of the Bridge for White Water is the responsibility of River Commons and ¼ is Snake River West. There is a question between the developers, and they are working on it, but the City may need to get involved. They are trying to connect Skyline Highschool and the Event Center with an easy foot path to the event Center. The island from Pancheri to Sunnyside and the River to Freeway, so they are looking for connections. Radford asked if the Connecting Community would go along the canal. Stevens stated that it is planned on the Battlecreek, and he would like it to move to the other side of the road, and the landing for the pedestrian connection would be cheaper and make more sense on the other side of Pioneer. Stevens stated that nothing has been figured out, they just want to add it as a project so if there are additional funds, they can spend the money before it is returned. Radford stated that it sounds like the project is still moving forward and the developers are still interested. Conrad stated that it is a work in progress, but they want to protect the right to use the funds. 8. RAI and Legislative Update. Conrad stated that there is not much to update. The RAI Membership and Board meeting is tonight, and they will have a planning and legislative workshop in July. Next Regular Meeting: July 18, 2024 or July 11, 2024 and they will continue to confirm what date works. Gazdik stated that if Yellowstone Square and Snake River West are not ready, cancel July meeting and move everything to August. Conrad stated that they need to tentatively approve the budget so it can be published in August. Sanner stated that they will work with the Board members to find a date that works. Gazdik moved to adjourn the meeting, Burtenshaw seconded the motion passed unanimously. Radford adjourned the meeting at 12:45 p.m. Respectfully Submitted: Beckie Thompson