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16-1119 Eligibility Report Ten Mile Urban Renewal DistrictCITY OF MERIDIAN RESOLUTION NO. I �p BY THE CITY COUNCIL: BIRD, BORTON, CAVENER, MILAM, PALMER, LITTLE ROBERTS A RESOLUTION OF THE MAYOR AND THE CITY COUNCIL OF THE CITY OF MERIDIAN ACCEPTING THAT CERTAIN REPORT ON ELIGIBILITY FOR THE TEN MILE URBAN RENEWAL DISTRICT AS AN URBAN RENEWAL AREA AND JUSTIFICATION FOR DESIGNATING THE AREA AS APPROPRIATE FOR AN URBAN RENEWAL PROJECT; DETERMINING THAT THE AREA IDENTIFIED IN THE REPORT IS DETERIORATED OR DETERIORATING; DESIGNATING SUCH AREA AS APPROPRIATE FOR AN URBAN RENEWAL PROJECT; AUTHORIZING THE URBAN RENEWAL AGENCY TO PREPARE AN URBAN RENEWAL PLAN FOR THE AREA TO INCLUDE A REVENUE ALLOCATION PROVISION AS ALLOWED BY LAW; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Meridian Development Corporation (MDC) is an independent public body, corporate and politic, an urban renewal agency created by and existing under the authority of and pursuant to the Idaho Urban Renewal Law of 1965, being Idaho Code, Title 50, Chapter 20, as amended and supplemented ("Law"); WHEREAS, on December 2, 2002, the Meridian City Council adopted Ordinance No. 02-987 approving an urban renewal Revitalization Plan; WHEREAS, based on inquiries and information presented, it has become apparent that additional property within the City may be deteriorating or deteriorated and should be examined as to whether such an area is eligible for urban renewal planning purposes; WHEREAS, the City and MDC commenced certain discussions concerning examination of the additional area as appropriate for an urban renewal project; WHEREAS, during 2015, the City and MDC authorized the commencement of an eligibility study and preparation of an eligibility report of an area located between I-84 and the West Franklin Road east of Ten Mile Road; WHEREAS, MDC has obtained an eligibility report (the "Report"), which examined an area in Meridian, Idaho, in an area known as the Ten Mile Area for the purpose of determining whether such area was a deteriorating area and deteriorated area as defined by Idaho Code Sections 50-2018(9) and 50-2903(8); WHEREAS, the Report dated November 2015, a copy of which is attached hereto as Exhibit A, found the existence of one or more of the statutory criteria for the area to be considered eligible for urban renewal activities; WHEREAS, pursuant to Idaho Code Section 50-2008, an urban renewal project may not be planned or initiated unless the local governing body has, by resolution, determined such area to be a deteriorated area or deteriorating area, or combination thereof, and designated such area as appropriate for an urban renewal project; WHEREAS, Idaho Code Section 50-2906, also requires that in order to adopt an urban renewal plan containing a revenue allocation financing provision, the local governing body must make a finding or determination that the area included in such plan is a deteriorated area or deteriorating area. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF MERIDIAN, IDAHO, AS FOLLOWS: Section 1. That the City Council acknowledges acceptance and receipt of the Report. Section 2. The City Council has determined that the Ten Mile Urban Renewal Area identified in the Report is a deteriorated or deteriorating area and qualifies as an urban renewal project and justification exists for designating the area as appropriate for an urban renewal project. Section 3. Having made such designation, the City Council hereby authorizes MDC to proceed with the preparation of an Urban Renewal Plan for the area, which Plan may include a revenue allocation provision as allowed by law. Section 4. That this Resolution shall be in full force and effect immediately upon its adoption and approval. ADOPTED by the City Council of the City of Meridian, Idaho, this q day of February, 2016. 2016. APPROVED by the Mayor of the City of Meridian, Idaho, this day of February, APPROVED: Mayor TaoKy de Weerd ATTEST: OV'Teo At, City By. P -P -1DIA�.,�, Jayce olman, City Clerk Ds,,,, o �1 SEAL, T ��rh,, rrse,�saeE°P�� EXHIBIT A – Report attachment 1 | P a g e Ten Mile Urban Renewal District (Proposed) Eligibility Report Prepared for The City of Meridian and The Meridian Development Corporation November 2015 Kushlan | Associates Boise, Idaho 2 | P a g e Introduction: Kushlan | Associates was retained by the City of Meridian to assist in their consideration of establishing a new urban renewal district in the City of Meridian, Idaho. Elected Officials serving the City of Meridian are: Mayor: Tammy de Weerd Council President: Charles Rountree Council Vice President: Keith Bird Council Members: Joe Borton Luke Cavener Genesis Milam David Zaremba City Staff Community Development Director: Bruce Chatterton Planning Division Manager: Caleb Hood Economic Development Administrator: Brenda Sherwood Idaho statutes, at Title 50-2006 states: “URBAN RENEWAL AGENCY. (a) There is hereby created in each municipality an independent public body corporate and poli tic to be known as the "urban renewal agency" that was created by resolution as provided in section 50-2005” to carry out the powers enumerated in the statutes.” The Meridian City Council adopted Resolution 01-397 on July 24, 2001 bringing forth those powers within the City of Meridian. The Mayor, with the confirmation of the City Council, has appointed nine members to the Urban Renewal Agency of the City of Meridian, also doing business as the Meridian Development Corporation (MDC). The MDC currently oversees the implementation of one urban renewal district focused on the revitalization of downtown Meridian that was established by the City Council’s adoption of Ordinance No. 02-987 on December 3, 2002. The current membership of the Commission is as follows: Chair: Jim Escobar Vice Chairman Dan Basalone Secretary David Winder Commissioners Calvin Barrett Keith Bird Tammy de Weerd Kit Fitzgerald Eric Jensen Callie Zamzow Staff: Urban Renewal Administrator: Ashley Squyres Legal Counsel: Todd Lakey 3 | P a g e Map of Existing Downtown Meridian Urban Renewal District 4 | P a g e Background: While Native Americans inhabited the area for centuries, the development of the community of Meridian, as we know it today, evolved through the late nineteenth century. European settlement started in the 1880s and was originally located on a farm owned by the Onweiler family. A school was opened in 1885. The U.S. Postal Service established a mail drop along the Oregon Short Line Railroad and the site was named Hunter after its superintendent. Community activity grew around this mail stop focused on the railroad. In 1893 an Odd Fellows lodge was organized and called itself Meridian, acknowledging that it was located on the Boise Meridian the primary North-South survey benchmark for Idaho. That name grew in primary use as the name of the settlement and the Village of Meridian was incorporated in 1903 with a population of approximately 200. The economy had traditionally been focused on the support of the surrounding agricultural activities. A major creamery was established in the community in 1897 to support the nearby dairies. Fruit orchards were located throughout the area. Meridian was a significant stop on the Interurban electric railway from 1908 to 1928. This service provided convenient access for passengers and freight in both easterly and westerly directions. Throughout most of the 20th century, Meridian remained a relatively quiet community focused on its agricultural roots. US Census Bureau data, reflects a 1910 population of 619 people growing to 2,616 by 1970. However, starting in 1970 the pace of growth in Southwest Idaho quickened and Meridian’s growth initially reflected, and then exceeded the regional rates by significant margins. Over the past twenty-five years the rate of growth has been startling by any reasonable standard. The following table reflects that population growth over the city’s history. 1903 (Incorporation Estimate) 200 1910 619 1920 1,013 1930 1,004 1940 1,465 1950 2,081 1960 2,616 1970 6,658 1990 9,596 2000 34,919 2010 75,092 2014 (Estimate) 85,000 When income statistics are compared to statewide numbers, the population of Meridian compares favorably with the rest of Idaho in these categories. The median household income in Meridian is $63,571, approximately 37% above the statewide figure of $46,767. Per capita money income for the Meridian population is $26,377 as compared 5 | P a g e to the statewide number of $22,568. The percentage of the Meridian population below poverty level is 8.4% as compared to the statewide number of 15.5%. Investment Capacity: Cities across the nation actively participate in the economic vitality of their communities through investment in infrastructure. Water and sewer facilities as well as transportation, communication, electrical distribution and other systems are all integral elements of an economically viable community. Idaho cities have a significant challenge in responding to these demands along with the on-going need to reinvest in their general physical plant to ensure it does not deteriorate to the point of system failure. They face stringent statutory and constitutional limitations on revenue generation and debt as well as near total dependence upon state legislative action to provide funding options. These strictures severely constrain capital investment strategies. The tools made available to cities in Title 50, Chapters 20 and 29, the Urban Renewal Law and Economic Development Act are some of the few that are available to assist communities in their efforts to support economic vitality. New sources of State support are unlikely to become available in the foreseeable future, thus the City of Meridian’s interest in exploring the potential for establishing their second urban renewal district is an appropriate public policy consideration. The City of Meridian initially established its Urban Renewal Agency in 2001. As noted above, its exclusive focus, limited by the boundaries of the district, is on the traditional downtown area of Meridian. Ten Mile Interchange Specific Area Plan The Idaho Transportation Department initiated planning for the development of a new interchange with Interstate 84 at Ten Mile Road in the 1990s. Construction of the interchange was completed in 2012. In support of the State’s investment and in anticipation of the resultant development pressure from the opening of the new interchange on the area immediately west of the Meridian City limits, the City initiated a broad-based planning effort for the general area. The Plan that was produced was the Ten Mile Interchange Specific Area Plan and was adopted by the City Council on June 19, 2007. The Plan remains in effect and is intended to guide development decisions within the study area. A map of the Ten Mile Interchange Specific Area Plan is provided below: 6 | P a g e As indicated in the Plan map, substantial public infrastructure is called for in implementing the development patterned envisioned. Thus far, development opportunities considered for the area covered by the Plan have been insufficient in scale to support the required public facility investment. This imbalance has thwarted the orderly implementation of the planning undertaken by the City and the property owners. This lack of progress has stimulated the current interest in exercising the powers granted under State Law in the establishment of a second urban renewal district in Meridian. Steps in Consideration of an Urban Renewal District: The first step in consideration of establishing an urban renewal district in Idaho is to define a potential area for analysis as to whether conditions exist within it to qualify for redevelopment activities under the statute. In this report, the lands evaluated are called the “Study Area”. The next step in the process is to review the conditions within the Study Area to determine whether the area is eligible for creating a district. The State Law governing urban renewal sets out the following criteria, at least one of which must be found, for an area to be considered eligible for urban renewal activities. 1. The Presence of a Substantial Number of Deteriorated or Deteriorating Structures; and Deterioration of Site; [50-2018(9); and 50-2903(8)(b) and (8)(c); and 52008(d)(4)(2) 2. Age or Obsolescence [50-2018(8) and 50-2903(8)(a)] 3. Predominance of Defective or Inadequate Street Layout [50-2018(9) and a. 50-2903(8) 4. Outmoded Street Patterns [50-2008(d)(4)(2) 5. Need for Correlation of Area with Other Areas of a Municipality by Streets; and Modern Traffic Requirements [50-2008(d)(4)(2)]. 6. Faulty Lot Layout in Relation to Size, Adequacy, Accessibility or Usefulness [50- 2018(9) and 50-2903(8)(b)] 7. Unsuitable Topography or Faulty Lot Layouts [50-2008(d)(4)(2)] 8. Insanitary or Unsafe Conditions [50-2018(9)] and [50-2903(8)(b)] 9. Diversity of Ownership [50-2018(9); [50-2903(8)(b) and (8)(c)]; and [50- a. 2008(d)(4)(2)] 10. Tax or Special Assessment Delinquency; [50-2018(9) 11. Defective or unusual condition of title; [50-2018(9) 12. Substantially Impairs or Arrests the Sound Growth of a Municipality a. [50-2018(9) and [50-2903(8)(b) 7 | P a g e 13. Conditions Which Retard Development of the Area [50-2008(d)(4)(2)] 14. Results in Economic Underdevelopment of the Area [50-2903(8)(b)]; and Economic Disuse [50-2008(d)(4)(2)] If the Eligibility Report finds that one or more of the conditions noted above exist within the Study Area, then the Urban Renewal Agency may adopt it and forward it to the City Council for their consideration. If the City Council concurs with the determination of the Urban Renewal Agency, they may direct that an Urban Renewal Plan be developed for the area that addresses the issues raised in the Eligibility Report. The Urban Renewal Agency, then acts to prepare the Urban Renewal Plan for the new District and determines whether to also recommend the establishment of a Revenue Allocation Area to fund improvements called for in the Plan. Once the Plan for the District and Revenue Allocation Area are completed, the Urban Renewal Board of Commissioners forwards it, along with their recommendation, to the City Council for their formal consideration. The City Council must refer the proposed Urban Renewal Plan to the Planning and Zoning Commission for a finding that the Plan, as presented, is consistent with the City’s Comprehensive Plan. The Planning and Zoning Commission has 60 days to complete their review. At the same time, other taxing entities levying property taxes within the boundaries of the proposed Urban Renewal District are provided a thirty- day opportunity to comment on the Plan to the City Council. While the taxing entities are invited to comment on the Plan, their concurrence is not required for the City Council to proceed with their consideration. In the case of the Ten Mile Study Area, the effected taxing districts for those properties located within the city limits of Meridian are:  The City of Meridian  The West Ada School District (School District No. 2)  Ada County  Emergency Medical District  Mosquito Abatement District  The Ada County Highway District  Meridian Library District  Meridian Cemetery District  Western Ada Recreation District  College of Western Idaho For those properties located in unincorporated Ada County, the effected taxing districts are:  The West Ada School District (Joint School District No. 2)  Ada County  Emergency Medical District  Mosquito Abatement District  The Ada County Highway District 8 | P a g e  Meridian Library District  Meridian Cemetery District  Western Ada Recreation District  College of Western Idaho  Meridian Fire District  Pest Extermination District Once/If the Planning and Zoning Commission makes their finding of consistency and the thirty-day comment period for the various taxing entities has passed, the City Council is permitted to hold a public hearing and formally consider the Adoption of the Plan creating the new Urban Renewal District and Revenue Allocation Area. The City Council also must find that the taxable value within the district to be created, plus the Base Assessed Value of any existing Urban Renewal / Revenue Allocation areas do not exceed the statutory maximum of 10% of the citywide assessed valuation. If the City Council, in their discretion, chooses to proceed, they will officially adopt the Urban Renewal Plan and Revenue Allocation Area and provide official notification of that action to the County Assessor and Idaho State Tax Commission. The Urban Renewal Agency then proceeds to implement the Plan. Description of the Ten Mile Study Area: The Study Area subject to the current review is located on the east side of Ten Mile Road, north of the Interstate 84 right-of-way and south of Franklin Road. All properties included are within the boundaries of the Ten Mile Interchange Specific Area Plan. The Study Area consists of twenty (20), relatively large, tax parcels. To provide the Agency and the City maximum flexibility in considering the ultimate extent of the District, the Study Area has been divided into sub-districts, defined primarily by ownership, for analysis. This will allow convenient decision-making by the Agency and City on which properties to include in the formation of a District should that be their determination. The Study Area has been divided into four Sub-districts designated as TM-1 through TM- 4 as noted in the following map and table. The size and value information presented in Table 1 was derived from the Ada County Assessor’s on-line parcel information system. The current taxable value of the Study Area is $4,482,400. However, a substantial portion of that area maintains an agricultural property tax exemption. This is important because State Law requires that when such properties transition from this exemption, the resultant increase in taxable value accrues to the Base Assessed Value instead of the Incremental Value. This requires estimating the impact of this transition. In reviewing the values ascribed to the various parcels, values range from $.04 to $.08 per square foot for agricultural exempt land. The consultant met with the staff of the Ada County Assessor to determine the value they place on the subject parcels before the exemption is applied. They indicated that a per square foot value of between $2.00 and $3.00 would be consistent with values they place on similarly zoned properties within the immediate area. They indicated that value, absent other information, is what should be used in considering the non-exempt values. Therefore, the taxable values have been adjusted to reflect this higher number as a basis for making the 10% calculation. Using the higher value ($3.00) to be conservative, we calculate that the Base Assessed Value of the Ten 9 | P a g e Mile URD moves from the $4,482,400 amount with the agricultural exemptions to $39,539,125 with those exemptions removed. It should be noted that the mere inclusion of a parcel within an urban renewal district does not have any effect on the agricultural exemption. That status would change only upon a change of use away from agricultural Ten Mile Urban Renewal District Study Area & Sub-Districts Table 1 Sub-District Ownership Parcel # Acreage 2015 Taxable AV Est. 2015 Base AV w/o ag. Exemption TM-1 SCS Brighton LLC South Parcel S1214314810 75.52 $265,600 $9,868,954 North Parcels S1214223260 34.63 $2,494,200 $4,525,448 S1214212560 3.631 $138,500 $474,499 S1214212800 2.875 $4,600 $375,705 Sub-District TM-1 Total 116.656 $2,902,900 $15,244,606 TM-2 Treasure Valley Investments LLC S1214233665 111.572 $235,300 $14,580,229 S1214234020 4.211 $9,500 $550,293 S1214223567 2.131 $4,800 $278,479 Sub-District TM-2 Total 117.914 $249,600 $15,409,002 10 | P a g e  Note: These acreages are exclusive of adjacent public rights -of-way for Ten Mile and Franklin Roads that should be included in the ultimate boundaries of any district established. Publicly owned properties are assigned no value in Idaho assessments, so including them makes no difference to the value calculation, but will slightly increase the ultimate acreage. Only half of the right-of way for Ten Mile Road and Franklin Road adjacent to TM-1 (northern portion) are included as only half of the right -of way has been annexed into the City. Description of the sub-districts: Sub-District TM-1; As noted in the table above, Sub-District TM-1 consists of four tax parcels. The largest parcel (75.25 acres) is located at the southern limits of the Sub- district immediately adjacent to the freeway interchange. It remains primarily in agricultural use. Of the total acreage, 4.0 acres has been designated by the Assessor as the homesite and thus not subject to the agricultural exemption accruing to the balance of the property. The homesite is assessed at $143,100. Associated with the homesite, there was a residence constructed in 1969 with an assessed value of $14,100. However, that residence has been removed from the property, but a large equipment shed remains on the property and in use. The balance of the property (67.8 acres) carries a valuation of $108,400. The relatively low taxable value of the majority of the land is a result of the agricultural land property tax exemption available to owners of property dedicated to agricultural uses under Idaho law. TM-3 SCS Brighton LLC S1214212580 6.557 $10,700 $856,869 S1214212820 5.443 $8,900 $711,291 S1214212740 1.286 0 0 S1214212720 0.686 0 0 SCS Brighton LLC Sub- total 13.972 $19,600 $1,568,160 Kostka Calnon Enterprises Limited Partnership S1214120710 2.201 $163,100 $287,1627 S1214121133 20.18 $32,600 $2,637,122 S1214212622 12.912 $21,000 $1,687,340 S1214121134 12.2 $47,700 $1,594,296 S1214121172 5.41 0 0 Sub-total Kostka Calnon 52.903 $264,400 $6,206,385 Bainbridge S1214120631 0.972 $167,300 $127,021 S1214120331 2.104 $169,600 $274,951 Sub-total Bainbridge 3.076 $336,900 $401,972 Sub-District TM-3 Total 69.951 $620,900 $8,176,561 TM-4 Twelve Oakes LLC R8580480010 1.438 $108,174 $108,174 R8580480020 7.987 $600,826 $600,826 Sub-District TM-4 Total 9.425 $709,000 $709,000 Consolidated 313.946 $4,482,400 $39,539,125 11 | P a g e When the improvement value assigned to a parcel is less than the land value, a deteriorated or deteriorating condition is present. National real estate appraisal standards suggest that in an economically viable property, land value should contribute approximately 30% of the total value leaving 70% to the improvements. As that ratio shifts, with improvement value declining as a proportion of the total, a condition of disinvestment is determined to be present. At a point when the improvement value represents less than 50% of the total (i.e. improvement value is less than land value) such condition represents a “deteriorating condition” for the purposes of this analysis. A random survey of Ada County Assessor property records of parcels in the immediate proximity of the proposed Ten Mile Urban Renewal District Study Area reflects these ratios. Sample residential properties constructed within the past 20 years reflect a land value of between 27% and 39% of the total values. Commercial properties, where appraisals are determined on an income basis instead of cost or comparable properties, reflected land values of between 20% and 29% of total value. When the homesite in Subdistrict TM-1 is analyzed, an improvement value was found that is less than 10% (9.85%) of the land value. However, the resi dence and various outbuildings on the property have been removed, even though they are still recognized on Ada County Assessor records. The Ten Mile Road frontage has been improved to current urban standards but the balance of the property has no public infrastructure to support the development pattern envisioned in the Ten Mile Interchange Specific Area Plan. A short portion of the Ten Mile Drain extends from the east into the northern Brighton properties, but is not part of that ownership and various maps show this small parcel remains outside the incorporated area of the City of Meridian. Since this small parcel is not in the city limits, it is included in TM-3, not TM-1. The drain physically continues in a northwesterly direction cross the Brighton parcels, but it is not recognized as a separate parcel in this area. The parcels located within the northerly portion of the sub-district have recently been platted for commercial development, but no investment has been made. Some preliminary planning has been conducted on potential development consistent with the Specific Area Plan, but no formal process implementing the Plan has been pursued. One lot (S1214212800) containing 2.875 acres has no access to a public street. While the parcels included in Sub-District TM-1 are under one ownership, they are not all contiguous. The statute does not require contiguity in the establishment of a district, however, the State Tax Commission maintains a policy that does. This contiguity can be achieved by including the Ten Mile Road right-of-way that is adjacent to the intervening parcel to establish one contiguous district boundary should the City determine to not include the TM-2 Sub-District. Sub-District TM-2: This Sub-District consists of three (3) parcels, all of which remain in active agricultural use. One parcel contains 111.572 acres, one contains 4.211 acres and one contains 2.131 acres for a total of 117.914 areas. As in TM-1, the properties located in TM-2 have no infrastructure installed other than the improvements to Ten 12 | P a g e Mile Road. No structures or other improvements are located within the boundaries of Sub-District TM-2. One lot (S1214223567) has no access to a public street. A dedicated but unimproved right-of-way separates the larger parcel from the 4-acre lot. Questions exist with regard to the sufficiency of the right-of-way, both in terms of width and alignment. According to representatives of the property owner, a low spot exists at the extreme southeast corner of the larger parcel allowing for the ponding of run -off from neighboring properties. The Kennedy Lateral extends in an east-west direction across most of the site. These properties are annexed and a general concept for development of the sub -district exists but no active progress has been made toward implementation. Sub-District TM-3: Sub-District TM-3 contains eleven (11) parcels under three ownerships. SCS Brighton LLC owns four parcels consisting of 6.065 acres located along the westerly edge of the sub-district and adjacent to their holdings in TM-1. The lot located south of the Ten Mile Drain has no access to a public street . One of the parcels is the extension of the Ten Mile Drain and another is designated as “wasteland” by the County Assessor, and thus carry no value. Steven J. Bainbridge owns two residential parcels located at the easterly end of the sub - district fronting on West Franklin Road and consisting of 3.076 acres. One parcel (S1214120631) consists of 0.972 acres and carries a land value of $93,200 and improvement value of $74,100 (80% 0f land value) thus suggesting disinvestment. The other parcel (S1214120661) is 2.104 acres in size and has a land value of $117,700 and improvement value of $51,900 (44% of land value) also suggesting a condition of disinvestment. The majority of the sub-district is held in the ownership of Kostka-Calnon Limited Partnership. This ownership is made up of five (5) parcels containing 52.903 acres. The Ten Mile drainage facility consisting of 5.41 acres traverses the Kostka-Calnon ownership and is classified as “wasteland” by the Ada County Assessor and therefore has been assigned no assessed value for taxation purposes. The total area of Sub-District TM-3, including the three ownerships and the “waste” parcels is 69.951 acres. The Kostka – Calnon parcels also remain in active agricultural usage, but 1.5 acres have been designated as the homesite (S1214121134), with an assessed value of $20,000. The residential improvement on the homesite includes a residence constructed in 1916 and carries a valuation of $10,300 or 51.5% of the associated land value. The remaining value on the homesite parcel ($17,400) and the values of the other two parcels ($53,600) used for agricultural purposes are subject to the agricultural exemption. An additional residential parcel (S1214120710) consists of 2.201 acres and has an assessed value of $163,100 for both land and improvement values. In this case the improvement value is assessed at 40% of the land value, suggesting disinvestment. An open irrigation lateral runs through the properties. 13 | P a g e The Brighton parcels remain fully in agricultural usage and no structures are present on the properties. The Ten Mile drain separates the two Brighton parcels creating a land - locked parcel. One lot under Kostka – Calnon ownership (S1214121133) consisting of 20.18 acres is situated south of the Ten Mile Drain and, like the Brighton parcel, has no access to a public street. No active development planning is evident on the properties located within the sub- district. The entire extent of Sub-District TM-3 remains in unincorporated Ada County. Should the Agency and City conclude that the properties located within this area be included in an urban renewal district, the parcels to be included would need to be either annexed into the City of Meridian prior to the effective date of the creation of the district, or be subject to an agreement between the City of Meridian and Ada County permitting the unincorporated parcels to be included. The Brighton and Kostka / Calnon properties have petitioned for annexation and that process is currently underway. The Bainbridge properties are not part of the annexation petition. Sub-District TM-4: Sub-District TM-4 consists of two tax parcels under the ownership of Twelve Oakes LLC, according to the records of the Ada County Assessor. The ownership is divided between a commercial tract located along the Franklin Road frontage and the majority (7.987 acres) designated for mixed-use development. There are no improvements or structures on the property. As noted above, the property has received initial entitlements for development but no schedule for installation of improvements has been established. The only public infrastructure serving the site, at this time, is the fully improved frontage of Franklin Road and an irrigation lateral located along the west property line. The north-south portion of the irrigation lateral separating TM-4 from TM-3 has been piped as required by City approvals. Analysis of the Study Area: A review of the Study Area reflects a pattern of delayed investment or an area in transition. This is particularly notable given the area’s proximity to substantial public investment in the Ten Mile interchange and street and utility improvements to both Ten Mile Road and Franklin Road. The Ten Mile Interchange Specific Area Plan provides a clearly articulated vision for a high-density mixed-use development pattern in this area that would capitalize on the access and utility investments already made by public entities. To date, however, while some planning has been done consistent with the Plan, little progress has been made to implement the vision. The Plan calls for substantial investment in public infrastructure but the market to date has proven incap able of supporting the capital costs. It appears as though meaningful progress may depend upon some level of public intervention to support the desired private investment to bring the Plan to reality. The individual sub-districts will be analyzed in the context of the adopted Specific Area Plan, and then the Study Area as a whole will be looked at to determine a final recommendation. 14 | P a g e For the convenience of the reader, the statutory criteria are reiterated, at least one of which must be found to qualify an area for urban renewal activities. Those conditions are: 1. The Presence of a Substantial Number of Deteriorated or Deteriorating Structures; and Deterioration of Site; [50-2018(9); and 50-2903(8)(b) and (8)(c); and 52008(d)(4)(2)] 2. Age or Obsolescence [50-2018(8) and 50-2903(8)(a)] 3. Predominance of Defective or Inadequate Street Layout [50-2018(9) and 50-2903(8)] 4. Outmoded Street Patterns [50-2008(d)(4)(2)] 5. Need for Correlation of Area with Other Areas of a Municipality by Streets; and Modern Traffic Requirements [50-2008(d)(4)(2)]. 6. Faulty Lot Layout in Relation to Size, Adequacy, Accessibility or Usefulness [50- 2018(9) and 50-2903(8)(b)] 7. Unsuitable Topography or Faulty Lot Layouts [50-2008(d)(4)(2)] 8. Insanitary or Unsafe Conditions [50-2018(9)] and [50-2903(8)(b)] 9. Diversity of Ownership [50-2018(9)]; [50-2903(8)(b) and (8)(c)]; and [50- 2008(d)(4)(2)] 10. Tax or Special Assessment Delinquency; [50-2018(9)] 11. Defective or unusual condition of title; [50-2018(9)] 12. Substantially Impairs or Arrests the Sound Growth of a Municipality a. [50-2018(9) and [50-2903(8)(b)] 13. Conditions Which Retard Development of the Area [50-2008(d)(4)(2)] 14. Results in Economic Underdevelopment of the Area [50-2903(8)(b)]; and Economic Disuse [50-2008(d)(4)(2)] Analysis: Sub-District TM-1 Criterion #1: The Presence of a Substantial Number of Deteriorated or Deteriorating Structures; and Deterioration of Site: The structures associated with these properties are located at the extreme south end of the Study Area and are adjacent to the recently constructed interchange. As noted above, the house and other outbuildings on the homesite have been removed, leaving only a large equipment shed on the property. That structure is relatively new and is appropriate to support a continued agricultural use but is inconsistent with the vision inherent in the Specific Area Plan. Since the majority of the structures previously located on the property have been removed, no deteriorated or deteriorating structures remain. Therefore, criterion #1 is not met. 15 | P a g e Criterion #2: Age or Obsolescence: Again, as noted above the structures were built to serve the historic agricultural use. While the remaining structure is not old, it is not of a nature to support the high-density mixed-use envisioned in the Plan. Additionally a significantly large and open drainage channel traverses the northerly parcels. This remains a common method of providing drainage to agricultural lands, but is inconsistent with high-density urban uses envisioned for the area. Therefore the remaining equipment shed and the open drainage channel are obsolete in this context and as such, criterion #2 is met. Criterion #3: Predominance of Defective or Inadequate Street Layout: As noted above, it is recommended to include the Ten Mile Road and Franklin Road rights -of- way within the boundaries of the sub-district. As such, the improvements made to these facilities in recent years appear adequate to serve the anticipated development. However, there are no streets in place to serve the internal development of these relatively large parcels. Implementation of the Specific Area Plan requires circulation throughout the planning area and since no streets currently exist to serve the anticipated interior development, criterion #3 is met. Criterion #4: Outmoded Street Patterns: This criterion is addressed in the same manner as the previous one and since there is no interior circulation pattern in place, criterion #4 is met. Criterion #5: Need for Correlation of Area with Other Areas of a Municipality by Streets; and Modern Traffic Requirements: While the Ten Mile Interchange and the Ten Mile Road and Franklin Road improvements provide good access to the area for the broader Meridian and regional community, the internal circulation system is non- existent at this point in time. The Specific Area Plan calls-out specific locations for access points into the sub-district so as to coordinate access into adjacent properties and thus allowing future signalization enhancing traffic safety in the area. While curb returns have been installed at specific locations, no means of providing streets connecting to these access points is currently in place so criterion #5 is met. Criterion #6: Faulty Lot Layout in Relation to Size, Adequacy, Accessibility or Usefulness: The parcels in the sub-district are of a size and configuration appropriate for the historic agricultural use for which they have been deployed for several decades. However, as the City and region have developed around these properties, the large lots in the sub-district are not properly configured to accommodate the development pattern envisioned in the Specific Area Plan. A more fine -grained and high-density development pattern is represented in the adopted Plan. Also, as noted above, one of the lots in the northerly section of TM-1 has no access to a public right-of-way. Therefore criterion #6 is met. Criterion #7: Unsuitable Topography or Faulty Lot Layouts: While the topography of the sub-district presents no difficulty for implementation of the Plan the lot layout as noted above is inappropriate for the uses envisioned and one parcel is land-locked. Thus criterion # 7 is met. Criterion #8: Insanitary or Unsafe Conditions: Again, given the current agricultural use “insanitary and unsafe conditions” are not present. However, when considering the anticipated development pattern, the sub-area is completely devoid of public water 16 | P a g e supply and distribution facilities. No provision for required fire flows nor any provision of sanitary sewer or storm drainage facilities adequate to the demand has been made. Therefore, criterion #8 is met. Criterion #9: Diversity of Ownership: There are four parcels included in Sub-District TM-1. All of these parcels are under the ownership of a single entity. Therefore, criterion # 9 is not met. Criterion #10: Tax or Special Assessment Delinquency: According to Ada County Assessor records, no delinquencies exist. Therefore, criterion #10 is not met Criterion #11: Defective or unusual condition of title: The two smaller parcels in the northern section of TM-1 appear to have been created by an informal “Lot split” and not through formal subdivision. Therefore they do not represent a legal lot of record, but merely a separate parcel for taxation purposes. While this is a legal process in the Sta te of Idaho such tax parcels may not comply with zoning and other site requirements . This can be viewed as an unusual condition of title. Therefore, criterion #11 is met. Criterion #12: Substantially Impairs or Arrests the Sound Growth of a Municipality: The State of Idaho, the City of Meridian and the Ada County Highway District have made substantial investment in the transportation and utility facilities serving this and the surrounding areas. The City of Meridian has expressed its vision for this ar ea in the creation and adoption of the Ten Mile Interchange Specific Area Plan, but without the capacity to provide public infrastructure, the Study Area will remain an under -utilized area in the midst of the fastest growing area in the State of Idaho. Criterion #12 is met. Criterion #13: Conditions Which Retard Development of the Area: See discussion of Criterion #12 above. Criterion #13 is met. Criterion #14: Results in Economic Underdevelopment of the Area: See discussion of Criterion #12 above. Criterion #14 is met. Findings: Sub-District TM-1: Conditions exist within the sub-district to allow the Board of Commissioners of the Meridian Development Corporation and the Meridian City Council to determine that the area is eligible for urban renewal activities as prescribed in State Law. Analysis: Sub-District TM-2 Criterion #1: The Presence of a Substantial Number of Deteriorated or Deteriorating Structures; and Deterioration of Site: Sub-District TM-2 consists of approximately 118 acres of undeveloped farmland. The entire acreage is used for agricultural purposes with no structures present on the properties. Therefore, criterion #1 is not met. Criterion #2: Age or Obsolescence: Again, no structures are present on the property and the only infrastructure serving the property is the recently improved Ten Mile Road which meets current standards. The Kennedy Lateral serves the current agricultural uses, but the open nature of the facility is not compatible with the development pattern envisioned in the Specific Area Plan and thus can be considered obsolete. Therefore, criterion #2 is met. 17 | P a g e Criterion #3: Predominance of Defective or Inadequate Street Layout: The only street serving this sub-district is Ten Mile Road which fronts the westerly edge of the sub- district. An unimproved right-of-way exists in the Southwest corner of the Sub -district This dedicated right-of-way extending into the property in a curvilinear fashion is viewed by the property owner as inadequate both in terms of width and alignment to support development plans for the property. No mechanism is in place to install required infrastructure. Effective development of the 118 acres requires public street access to the full extent of the property. Such street network does not exist at this time. Therefore, criterion # 3 is met. Criterion #4: Outmoded Street Patterns: This criterion is addressed in the same manner as the previous one and since there is no interior circulation pattern in place, criterion #4 is met. Criterion #5: Need for Correlation of Area with Other Areas of a Municipality by Streets; and Modern Traffic Requirements: While the Ten Mile Interchange and the Ten Mile Road and Franklin Road improvements provide good access to the area for the broader Meridian and regional community, the internal circulation system is non- existent at this point in time. The Specific Area Plan calls out specific locations for access points into the sub-district so as to coordinate access into adjacent properties and thus allowing future signalization enhancing traffic safety in the area. While curb returns have been installed at specific locations, no means of providing streets connecting to these access points is currently in place. The right-of–way extending into the property is viewed as inadequate by the property owner. Therefore, criterion #5 is met. Criterion #6: Faulty Lot Layout in Relation to Size, Adequacy, Accessibility or Usefulness: The parcels in the sub-district are of a size and configuration appropriate for the historic agricultural use for which they have been deployed for several decades. However, as the City and region has developed around these properties, the large lots in the sub-district are not properly configured to accommodate the development pattern envisioned in the Specific Area Plan. A more fine -grained and high-density development pattern is represented in the adopted Plan. One land-locked lot has no access to public right-of-way. Therefore, criterion #6 is met. Criterion #7: Unsuitable Topography or Faulty Lot Layouts: A low area at the southeast corner of the largest parcel acts as an informal drainage basin, receiving run- off from adjacent residential properties. The topography of the rest of the sub-district presents no difficulty for implementation of the Specific Area Plan. The lot layout as noted above is inappropriate for the uses envisioned. Again, one lot has no access to a public street. Thus, criterion # 7 is met. Criterion #8: Insanitary or Unsafe Conditions: Again, given the current agricultural use “insanitary and unsafe conditions” are not present. However, when consid ering the anticipated development pattern, the sub-district is completely devoid of public water supply and distribution facilities. No provision for required fire flows nor any provision of sanitary sewer or storm drainage facilities adequate to the demand has been made. The open configuration of the Kennedy Lateral would create an unsafe condition under the development pattern envisioned in the Specific Area Plan. Therefore, criterion #8 is met. 18 | P a g e Criterion #9: Diversity of Ownership: There are three parcels included in Sub-District TM-2. All of these parcels are under the ownership of a single entity. Therefore, criterion # 9 is not met. Criterion #10: Tax or Special Assessment Delinquency: According to Ada County Assessor records, no delinquencies exist. Therefore, criterion #10 is not met. Criterion #11: Defective or unusual condition of title: No defective or unusual conditions of title exist. Therefore, criterion #11 is not met. Criterion #12: Substantially Impairs or Arrests the Sound Growth of a Municipality: The State of Idaho, the City of Meridian and the Ada County Highway District have made substantial investment in the transportation and utility facilities serving this and the surrounding areas. City of Meridian has expressed its vision for this area in the creation and adoption of the Ten Mile Interchange Specific Area Plan, but without the capacity to provide public infrastructure, the Study Area will remain and under-utilized area in the midst of the fastest growing areas in the State of Idaho. Criterion #12 is met. Criterion #13: Conditions Which Retard Development of the Area: See discussion of Criterion #12 above. Criterion #13 is met. Criterion #14: Results in Economic Underdevelopment of the Area: See discussion of Criterion #12 above. Criterion #14 is met. Findings: Sub-District TM-2: Conditions exist within the sub-district to allow the Board of Commissioners of the Meridian Development Corporation and the Meridian City Council to determine that the area is eligible for urban renewal activities as prescribed in State Law. Analysis: Sub-District TM-3 Criterion #1: The Presence of a Substantial Number of Deteriorated or Deteriorating Structures; and Deterioration of Site: As with the other sub-districts previously reviewed, the properties included within Sub-District TM-3 have been dedicated to agricultural pursuits for many decades. Structures, both residences and outbuildings were developed on the properties fronting on West Franklin Road to support that use. The Ada County Assessor recognizes four residential structures and several outbuildings in this sub-district, all of which reflect improvement values less than the values assigned to the parcels on which they are located. These residences reflect values ranging from 28% to 80% of the land value. This situation suggests a deteriorating condition of the improvements. While the condition of many of the structures remains serviceable for their historic use, the higher intensity uses envisioned in the Specific Area Plan are incompatible with the older buildings. Therefore, criterion #1 is met. Criterion #2: Age or Obsolescence: The County Assessor recognizes four residential structures in the sub-district two of which approach 100 years of age and one being 85 years old. The other dwelling was constructed in 1980. A variety of out buildings exist on the properties. The age of the majority of the buildings suggests that the structures on the properties are functionally obsolete. It is most likely that implementation of the City’s plans for the area will require demolition or relocation of most of the structures currently in place. 19 | P a g e Another infrastructure element located in the sub-district is the Ten Mile Drainage facility. It is an open ditch that traverses the sub-district actually separating the southerly lot from those fronting on Franklin Road and thus creating a relatively large parcel with no public access. The ditch may be adequate for the current use of the property, but the higher density uses envisioned in the planning documents render this facility obsolete in the more urban context that has evolved around this property. Finally, the property is served by an irrigation lateral (Vaughan Lateral) that runs along the east boundary of the sub-district then traverses the area in an east-west configuration before returning to the north boundary at Franklin Road. As long as the properties remain in agricultural use the open facility f unctions adequately. However, as the development on the properties intensifies, the open nature of the lateral will present a potentially hazardous condition and therefore would be rendered obsolete. The lateral has been piped along the easterly boundary of TM-3 suggesting that a similar treatment of the east-west section will be required as a condition of development at some time in the future. Therefore, criterion #2 is met. Criterion #3: Predominance of Defective or Inadequate Street Layout: West Franklin Road has been improved to full urban standards across the northerly frontage of this sub-district. An unimproved private roadway provides the only access to the interior part of the sub-district. To fully respond to the vision expressed in the Spe cific Area Plan, a more robust system of public streets will be required. The southerly lot has no access to a public street. Since those streets do not exist at this time, criterion #3 is met. Criterion #4: Outmoded Street Patterns: This criterion is addressed in the same manner as the previous one and since there is no interior circulation pattern in place, criterion #4 is met. Criterion #5: Need for Correlation of Area with Other Areas of a Municipality by Streets; and Modern Traffic Requirements: While the Ten Mile Interchange and the Ten Mile Road and Franklin Road improvements provide good access to the area for the broader Meridian and regional community, the internal circulation system is non- existent at this point in time. The Plan called out specific locations for access points into the sub-district so as to coordinate access into adjacent properties and thus allowing future signalization enhancing traffic safety in the area. While curb returns have been installed at specific locations, no means of providing streets connecting to these access points is currently in place so criterion #5 is met. Criterion #6: Faulty Lot Layout in Relation to Size, Adequacy, Accessibility or Usefulness: The parcels in the sub-district are of a size and configuration appropriate for the historic agricultural use for which they have been deployed for several decades. Three parcels fronting West Franklin Road have been divided off from the original property but even these lots range from approximately one acre to 2.2 acres making them ill-suited for the type of development envisioned in the adopted plans. A more fine- grained and high-density development pattern is represented in the adopted Plan. The largest lot in TM-3 (20.13 acres) has no public access. Therefore, criterion #6 is met. 20 | P a g e Criterion #7: Unsuitable Topography or Faulty Lot Layouts: While the topography of the sub-district presents no difficulty for implementation of the Specific Area Plan the lot layout as noted above is inappropriate for the uses envisioned. The largest lot has no access to a public right-of-way. Thus, criterion # 7 is met. Criterion #8: Insanitary or Unsafe Conditions: While public water and sewer facilities are available to the site in the recently improved Franklin Road, City policy precludes providing utility service to properties outside the city limits. Therefore the existing residences located in Sub-District TM-3 do not currently have access to public water and sewer service. This condition will be rectified if the current annexation petition ultimately results in their inclusion within the city limits. The property is served by an open irrigation channel (Vaughan Lateral). That portion of the Lateral running along the east property line of Sub -District TM-3 has recently been piped. The portion traversing the area in an east-west direction remains open and unprotected creating a potentially hazardous condition as activities intensify in the area. Criterion #8 is met. Criterion #9: Diversity of Ownership: The 62.485 acres included within Sub-District TM-3 are held under three separate ownerships: (Brighton, Kostka / Calnon and Bainbridge) with the majority (53 acres) being controlled by Kostka / Calnon. A large number of small parcels with diverse ownerships make reinvestment difficult. However, the properties located here are relatively large and one can expect three sophisticated property owners to work together. Therefore, it is determined that criterion#9 is not met. Criterion #10: Tax or Special Assessment Delinquency: According to Ada County Assessor records, no delinquencies exist. Therefore, criterion #10 is not met. Criterion #11: Defective or unusual condition of title: The two smaller parcels at the westerly end of TM-3 appear to have been created by an informal “Lot split” and not through formal subdivision. Therefore they do not represent a legal lot of record, but merely a separate parcel for taxation purposes. The larger 20 acre parcel appears to be created in a similar manner. While this is a legal process in the State of Idaho such tax parcels may not comply with zoning and other site requirements. This can be viewed as an unusual condition of title. Therefore, criterion #11 is met. Criterion #12: Substantially Impairs or Arrests the Sound Growth of a Municipality: The State of Idaho, the City of Meridian and the Ada County Highway District have made substantial investment in the transportation and utility facilities serving this and the surrounding areas. City of Meridian has expressed its vision for this area in the creation and adoption of the Ten Mile Interchange Specific Area Plan, but without the capacity to provide public infrastructure, the Study Area will remain and under-utilized area in the midst of the fastest growing areas in the State of Idaho. Criterion #12 is met. Criterion #13: Conditions Which Retard Development of the Area: See discussion of Criterion #12 above. Criterion #13 is met. Criterion #14: Results in Economic Underdevelopment of the Area: See discussion of Criterion #12 above. Criterion #14 is met. 21 | P a g e Findings: Sub-District TM-3: Conditions exist within the sub-district to allow the Board of Commissioners of the Meridian Development Corporation and the Meridian City Council to determine that the area is eligible for urban renewal activities as prescribed in State Law. While the entire area of Sub-District TM-3 currently remains in unincorporated Ada County a petition for annexation to the City of Meridian has been filed for the Brighton and Kostka / Calnon properties. Should that annexation become effective prior to the creation of an urban renewal district in this area, the inclusion of these parcels could occur without hindrance. The Bainbridge parcels were not included in the annexation petition. And while statute allows for inclusion of unincorporated areas in an urban renewal district created by a city in Idaho, that can only be accomplished by way of an intergovernmental agreement between the city and the county permitting such inclusion. This option would create complexity and potential delay, especially if any opposition surfaces. We are unaware of any interest of this ownership to be included. Analysis: Sub-District TM-4 Criterion #1: The Presence of a Substantial Number of Deteriorated or Deteriorating Structures; and Deterioration of Site: The properties located within this sub-district have no structures on them; therefore, criterion #1 is not met. Criterion #2: Age or Obsolescence: Again, given the fact that no structures exist on the properties, age and obsolescence are not an issue. The irrigation lateral, previously existing in an open-ditch condition has been enclosed in a piped system. Therefore, criterion #2 is not met. Criterion #3: Predominance of Defective or Inadequate Street Layout: While the property fronts on a street improved to full urban standards, no internal circulation is currently in place. However, this sub-district is relatively small and current plans call for the property to be served by private streets. Given that this development is planned in isolation from the surrounding properties and the relatively small traffic demand anticipated, the private streets should be adequate. Therefore, criterion #3 is not met. Criterion #4: Outmoded Street Patterns: The analysis for this criterion is essentially the same as for criterion #3 and thus, criterion #4 is not met. Criterion #5: Need for Correlation of Area with Other Areas of a Municipality by Streets; and Modern Traffic Requirements: Again, Sub-District TM-4 is relatively small (9.425 acres) and the proposed development does not negatively impact development potential around it. The Ten Mile Interchange Specific Area Plan that covers this property does not call for street extensions through this area. Therefore, criterion #5 is not met. Criterion #6: Faulty Lot Layout in Relation to Size, Adequacy, Accessibility or Usefulness: The property within this sub-district has recently been divided to accommodate a specific development scheme; therefore the lot layout is appropriate for the anticipated uses. Criterion #6 is not met. 22 | P a g e Criterion #7: Unsuitable Topography or Faulty Lot Layouts: As noted above, the lot configuration is suitable for the proposed development having recently been divided and the site is relatively flat allowing services to be extended. Therefore, criterion #7 is not met. Criterion #8: Insanitary or Unsafe Conditions: No insanitary conditions exist on the site and public sewers will be extended throughout the property with the proposed development. The Vaughan Lateral has been piped thereby eliminating that potentially unsafe condition. Criterion #8 is not met. Criterion #9: Diversity of Ownership: The entire sub-district is under one ownership; therefore Criterion #9 is not met. Criterion #10: Tax or Special Assessment Delinquency: According to Ada County Assessor records, no delinquencies exist. Therefore, criterion #10 is not met Criterion #11: Defective or unusual condition of title: No defective or unusual conditions of title exist. Therefore, criterion #11 is not met. Criterion #12: Substantially Impairs or Arrests the Sound Growth of a Municipality: The State of Idaho, the City of Meridian and the Ada County Highway District have made substantial investment in the transportation and utility facilities serving this and the surrounding areas. City of Meridian has expressed its vision for this area in the creation and adoption of the Ten Mile Interchange Specific Area Plan. The proposed development is consistent with the Plan. The relatively small area and isolation from the rest of the Specific Area Plan properties suggest no substantial impact on the development of nearby areas or the community as a whole. The sub -district is separated from the other in-city sub-districts by the unincorporated areas included in Sub-District TM-3. Criterion #12 is not met. Criterion #13: Conditions Which Retard Development of the Area: See discussion of Criterion #12 above. Criterion #13 is not met. Criterion #14: Results in Economic Underdevelopment of the Area: See discussion of Criterion #12 above. Criterion #14 is not met. Findings: Sub-District TM-4: Conditions do not exist within the sub-district to allow the Board of Commissioners of the Meridian Development Corporation and the Meridian City Council to determine that the area is eligible for urban renewal activities as prescribed in State Law. Should the Agency and City Council want to bring urban renewal tools to assist in the development of this sub-district, appending it to Sub-District TM-3 may be a better option than a stand-alone, geographically isolated district. Consolidated Sub-District Analysis: Having reviewed the existing conditions in the four sub-districts separately, the Study Area as a whole will be evaluated. Conditions exist in Sub-Districts TM-1, TM-2 and TM-3 that warrant a finding that these areas may be included in an urban renewal district. Sub-District TM-4, in a stand-alone condition, would prove difficult to justify. However, it could legitimately be included in a larger district, associated with an area or areas where the conditions/findings were met. 23 | P a g e A significant issue in determining what areas to include is the timing of potential development. Recent amendments to the Urban Renewal Law and Economic Development Act have limited the maximum life of a district to 20 years. The longer development is delayed after creation of an urban renewal district, the fewer years of incremental revenue are thus available to support required infrastructure investments. Should the City Council direct the creation of an urban renewal plan in this area, one of the required elements of that Plan is a financial feasibility analysis. In that analysis, one will need to consider the cost of installation of public facilities against the anticipated revenue produced by the private, taxable investment. This suggests that a district wherein development in not foreseen in the very near future may prove financially infeasible. Another significant factor is the type of development anticipated in the area under consideration. Of particular concern is the proportion of owner-occupied residential properties. These uses enjoy a substantial property tax exemption prescribed by State Law, thereby reducing the revenue yield needed to support infrastructure investment. Such residential uses need properties carrying their full tax burden to supplement their limited yields. CONCLUSION: Based upon the data and the conditions that exist within the Study Area as noted above, the Meridian Development Corporation Board and Meridian City Council may determine that Sub-Districts TM-1, TM-2 and TM-3 are eligible for the establishment of an urban renewal district and could be combined into a single urban renewal district. Sub-District TM-4 appears ineligible as a stand-alone district but could be included in a larger district. A variety of configurations are available at the discretion of the City Council. 10% Analysis: In addition to the findings reported above, verification that the assessed value of the proposed Study Area is within the statutory limits is needed. As noted above, State Law limits the percentage of assessed value that can be included in urban renewal / revenue allocation districts to 10% of the total valuation of the City. According to Ada County Assessor records, the most recent total certified value for the City of Meridian is $ 8,890,841,600. This number does not reflect exemptions. Therefore taking a more conservative approach, the net taxable value for this calculation is used. That number is $6,848,682,967. As shown in the analysis in Table 1 the current taxable value of the entire Study Area after the agricultural exemptions are lifted is estimated to be $39,539,125. This value then must be added to the Base Assessed Value of the Downtown Meridian Urban Renewal District to test for the 10% limitation. The Base Assessed Value of the Downtown District established at the time of its creation, is $146,334,050. The analysis for these purposes in presented in Table 2, below. The combined amounts are well below the statutory limit. Reducing the area to be included in the new district would reduce the percentage. 24 | P a g e Table 2 Statutory 10% Limitation Analysis Area Taxable Value Percentage Total City $6,848,682,967 100% Downtown Meridian URA Base Value $146,334,050 2.14% Proposed Ten Mile URA $39,539,125 0.58% Total UR Base Assessed Value Percentage $185,873,175 2.714% The effect of creating this district on the capacity of the City and MDC to consider future districts should they choose to do so is also explored. The table below shows that even if a new district similar to the Ten Mile URD were to be established, appro ximately 7.66% of the citywide taxable value would remain uncommitted. Remaining Urban Renewal Capacity  Maximum 10% Limitation $684,868,297 10%  Downtown Meridian URA $146,334,779 (2.14%)  Proposed Ten Mile URA $13,482,643 (0.58%) Available AV within limitation $615,275,932 7.286% 25 | P a g e Images: Sub-District #1 Images: Sub-District #2 Images: Sub-District #3 26 | P a g e Images: Sub-District #4