Urban Renewal Agency

November 2, 2023 This regular meeting of the Jerome Urban Renewal Agency was called to order at 3:00 p.m. Council Chambers were open to the public, and the meeting was held in person and by teleconference. The video conference was conducted via Zoom and was made available to all members of the public in a format that allowed all participants to hear the meeting, including all deliberations by members of the Urban Renewal Agency board and other speakers addressing the board, whether in person or via virtual connection, and to comment if so desired, all of which was noted in the agenda, email, and notices at council chambers and on the city’s website. Present were Chairman Kathy Cone, Commissioner Jason Peterson, Commissioner Bryan Craig, Commissioner Shonna Fraser, and Commissioner B.J. Hess. Also present were City Clerk Bernadette Coderniz, City Administrator Mike Williams, Finance Director Ross Hyatt, City Engineer Tyson Carpenter, Planning and Zoning Manager Ida Clark, and IT Technician Andy Newbry. Legal Counsel Ryan Armbruster and Meghan Conrad joined via Zoom. PLEDGE OF ALLEGIANCE: Chairman Cone led the audience in recitation of the pledge of allegiance. CONSENT CALENDAR: Items in the consent calendar are as follows: A. Approve minutes of the October 12, 2023 special meeting B. Review and approve claims for November 2023 • Elam & Burke Inc., $2,557.06 C. Review and approve staff financial reports for October 2023 Commissioner Craig made a motion to approve the consent calendar as presented. Second to the motion was made by Commissioner Peterson. After consideration the motion passed unanimously by the following vote: AYES: Chairman Cone, Commissioner Peterson, Commissioner Craig, Commissioner Fraser, and Commissioner Hess. NAYES: None. REQUEST FOR PROPOSALS, BLOCKS 55/66 PROJECT: Mr. Williams spoke of the process of issuing a Request for Proposals (RFP) and presented a draft version for the board to review pertaining to the Blocks 55/66 project along with a map of the property. The focus of the RFP will be the back portion of the property and to advertise a multi-family residential project to match the property zoning of residential R-3. A lot line adjustment will be required in the near future. The property is approximately four acres, and developers will be asked to provide solutions including: multi-family uses, open space, and other ancillary uses to accommodate a family development (i.e. playground, etc.). Developers will also be asked to conform to the Area 3 downtown Urban Renewal area plan, and to put character into the buildings. The URA will have significant input on the final product. The RFP will also request the following: a summary of proposed construction ideas; information pertaining to business partners and design professionals; their development team; successful past projects; proof/identification of eligible financing; preliminary concepts for floor plans and building elevations; project viability; and,their willingness to enter into a development agreement and understand that all submittals will be subject to public examination. Staff is hopeful that multiple responses will be received; one developer has already shown interest. Mr. Williams stated other goals and objectives outlined in the RFP include consideration for the building materials and overall fit with the neighborhood and surrounding uses, enhancement of open spaces, landscaping and sidewalks, and the consideration for connectivity, transportation enhancements and safety. Other considerations include parking for the development and compliance with the zoning of the property, and what the development contribution would mean to downtown and the local economy. The probability of success and market analysis of the developer will also be requested along with their expectations of the Agency and what type of assistance they will be seeking. Improvements on N. Alder and along N. Birch where it is devoid of curb, gutter and sidewalk are examples of what the Agency could assist with. Mr. Williams proposed the following timeline: RFP be published twice in November with a due date in early December; review of the proposals by the board in January 2024; execution of an Exclusive Right to Negotiate agreement in February 2024; and, execute a development agreement by June 2024. The timeline, while aggressive, could expedite the process if a quality proposal is received. Staff will exercise discretion with accepting or rejecting submissions. Mr. Armbruster stated he is hopeful this RFP will be successful; sometimes these projects go through multiple steps. The RFP was drafted to provide a wide array of potential responses concerning housing, and there were no limits to housing components. The Agency is required to publish a short-form notice in the Times News with a minimum of thirty days for developers to respond. Upon publication Mr. Williams will be able to provide the RFP notice and materials to those who express interest in the site. A release and waiver document will be created to eliminate liability on the part of the Agency or City. Upon inquiry by Commissioner Craig, Mr. Williams stated there are two homes on Birch near the property. Additionally, “comfortable affordable housing options” will be changed to “housing” on the RFP so as to not limit the type of housing projects desired. The term “affordable” could be interpreted as “low income” whereby tax credits would be obtained through the housing authority. Brief discussion ensued regarding The Oaks complex, those who do not qualify for low-income housing, and the need for affordable housing that is not income based. Staff is hopeful the new housing complex will present an opportunity for others paying high rent to move, and Mr. Williams spoke of the current housing market, expensive construction costs and high interest rates. Mr. Armbruster spoke of retaining the sentence “lack of available housing in Jerome for employees” and let the market respond as to the type of housing that would be appropriate at this location. Both he and Mr. Williams are optimistic that a good proposal will be submitted. Commissioner Craig made a motion to authorize Mr. Williams and legal counsel to move forward with the completion of the RFP as discussed, and take steps to publish and distribute the RFP when completed. Second to the motion was made by Commissioner Peterson. After consideration the motion passed unanimously by the following vote: AYES: Chairman Cone, Commissioner Peterson, Commissioner Craig, Commissioner Fraser, and Commissioner Hess. NAYES: None. LEGISLATIVE UPDATE:  Mr. Armbruster spoke of indications that the legislature could review previously passed house bills regarding the 8% budget cap and the new construction values for annexations and URA’s to determine if the legislation implemented is working. Additionally, tax relief is expected on the upcoming tax bills if the property tax legislation was implemented correctly. Election years usually result in a shorter legislative session, and efforts to schedule sessions with state departments for next year’s budget are beginning. Mr. Armbruster also stated there was no new information to report regarding the informal ad hoc group that assembled with Representative Monks, House Speaker Moyle, the Idaho Association of Counties director, and Kelley Packer with the Association of Idaho Cities. This group was to address different concerns or thoughts, but he is uncertain if they met again. STAFF REPORTS: Mr. Williams reported on the College of Southern Idaho’s (CSI) new building and provided preliminary renderings of the site plan including building elevations. A pre- development meeting with staff is scheduled for next week to review the site plan. The building will be 20,000 square feet on the corner of 3rd Avenue W and N Lincoln; the site is in the Central Business District (CBD) with zero lot lines allowing the building to be closer to the road. Internal renderings were also shown to the board and will include an assortment of uses including: industrial work force training labs (technical instruction for HVAC, electrical trades, etc); labs for food processing which will require cool space; work force training to support TrueWest Beef; classrooms for nursing, science and biology programs; a large gathering room (including space for food prep but not a formal kitchen); student lounge areas; and, storage space. Mr. Williams stated the exterior will include sixty-six parking spaces and a common area with a walking path; a digital copy of the plans will be forwarded to the board once they are finalized and received. All renderings are preliminary at this time. The American Falls Reservoir District purchased property for their new building on 1st Avenue W, and Mr. Williams stated staff is negotiating with them on streetscapes to tie in with the City’s updated streetscape standards. Mr. Williams stated work will be done on N. Alder (pavers, a tree well, etc.) and Mr. Carpenter stated they will be doing the work on 1 st Avenue. Some of the City improvements will be stubbed out for future lighting in that area. The Pantera Market is currently in the permitting phase of their project, and their plans include the demolition of the old NAPA building on S. Lincoln. Mr. Williams stated staff has reviewed the City’s streetscape standards with the owner, and other utility issues are being resolved. The property falls outside of the existing Agency improvements project area, however, a reimbursement agreement could be considered based on their investment and tax increment as a result of the project. A formal agreement will need to be executed. Upon inquiry by Commissioner Peterson, Mr. Williams stated the market is a Hispanic grocery store based out of the Treasure Valley. An attractive building, the new store design was approved by the Planning and Zoning Commission. Staff worked well with the developer to meet setback requirements, and Mr. Williams stated other buildings that face redevelopment in the future will also be required to meet setback requirements as close as possible while accommodating drainage issues. Construction is expected to start in the spring. Upon inquiry by Commissioner Peterson, Mr. Williams stated Northwest Equipment is within City limits, but that the project will not be developed for sometime as there are infrastructure improvements, plat and road access issues to be resolved. Commissioner Craig inquired about the new pizza restaurant planned for the old Instant Auto Credit building (owned by Con Paulos), and Mr. Carpenter stated improvements to the building have not yet commenced. Mr. Williams stated site plan adjustments will need to be made prior to the issuance of an occupancy permit, but a building permit has been issued for The Pizza Factory. The Lincoln Courtyards project is progressing, and Mr. Williams stated sidewalks have been poured and there are now spaces for tree wells and pavers. The completion date of the project is unknown at this time. A signed contract was sent to J-U-B Engineers for the Avenue A/Alder improvements, and staff is hopeful the project will be bid and constructed in 2024. Mr. Williams spoke of the Main/Lincoln project and stated that the Idaho Transportation Department (ITD) is waiting on their final report of the Geotech analysis to be approved. Old concrete sits underneath the surface, and ITD will have to decide how to proceed with reconstruction. Once the scope of work is settled and construction estimates are in place, Mr. Williams stated he believed that ITD will ‘piggy back” on the J-U-B agreement and have their project managed through the City contract. Staff is hopeful that the Main/Lincoln project will be designed in 2024 and constructed in 2025. Mr. Williams spoke of the financing and earned interest; he anticipates spending by the end of 2025. Mr. Armbruster stated the bond was issued in August 2022, and the Agency has three years to complete the project. He will reach out to bond counsel to see where the Agency stands with Area 3 and Area 5 financing, and he stated the Agency may have to pay some arbitrage or rebate at the end of the project term. In Area 4, Mr. Williams stated the Nelson-Jameson building is progressing; some exterior work is completed, and the project along with the Western Dairy project should result in significant increment value. Improvements in Area 4 include the connection of the water line on Yakima from the railroad tracks to Tiger, and the roadway itself is in need of improvements. The Agency may be in the position next year to consider potential advanced funding to make those improvements as they should be supported by the Area 4 plan; ten years remain in the life of Area 4, and staff will need to consider revenues to strategize for future improvements. Mr. Williams stated staff is also looking for solutions on a bypass route for large trucks to keep them from traveling on Lincoln; ideas are being explored. In Area 5, Mr. Williams spoke of the gravity sewer line and stated Keller Associates is working on a design of the project; there may be delays to the project when considering culverts, irrigation lines, etc., and completion of the project may be delayed into 2025. He noted the wastewater staff is appreciative of the upgrade to the gravity sewer line considering the present condition of the lift stations in that area. Mr. Williams stated the park project is also moving forward. Mr. Carpenter stated the entire road into the park may not be paved completely until the park is near completion. Bid items for Phase II (bathrooms, playground, etc.) will be prepared, and once contracts are in place work can begin in the spring. Regarding the site where CSI will ultimately be located, Mr. Williams stated the Boys and Girls Club will no longer be considering the site for their new facility due to certain needs (a full size gym, an acre of open space, etc.). However, the option of housing their facility near the new park was discussed as there would be ample room for their gym, and there is an abundance of open space on city-owned acres. A potential partnership with the Jerome Recreation District could be explored as they have also expressed the need for an additional gym, and long-term plans include access to the site from Lincoln. Upon inquiry by Commissioner Craig, Mr. Williams stated a land deal or infrastructure improvements could be negotiated with the URA if that site were to be chosen for their new facility; there may be a presentation to the board in the near future. Additionally, once the new CSI building is in place, it is anticipated that other entities will express interest in relocating to the site. Commissioner Craig commented on the tennis courts and the attractiveness of the new pavers. He spoke of rock on the east side of the tennis courts and inquired if the rock was to remain or be replaced. Mr. Williams stated that Buchanan falls outside of the City streetscape standards area; the Americans with Disabilities Act (ADA) sidewalk is now in place, and the rock is expected to stay in place and added to the empty areas. Trees will be planted in the spring, and the new streetscaping makes for an exciting project at Avenue A/Alder. Mr. Williams stated the December meeting date could change; it will be Mr. Armbruster’s last meeting as the URA legal counsel. If there is inclement weather or other issues, the date of the meeting may be adjusted to allow for Mr. Armbruster and Ms. Conrad’s attendance. ADJOURN: There being nothing further to discuss, Chairman Cone adjourned this November 2, 2023 regular meeting at 4:01 p.m. Chairman Kathy Cone Secretary Jason Peterson