20-2188 Union District as an Urban Renewal Area and Justification CITY OF MERIDIAN RESOLUTION NO. 20-2188
BY THE CITY COUNCIL: BERNT, BORTON, CAVENER,
HOAGLUN, PERREAULT, STRADER
A RESOLUTION OF THE MAYOR AND THE CITY COUNCIL OF THE CITY OF
MERIDIAN ACCEPTING THAT CERTAIN REPORT ON ELIGIBILITY FOR THE
UNION DISTRICT AREA AS AN URBAN RENEWAL AREA AND REVENUE
ALLOCATION 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; DIRECTING THE URBAN RENEWAL AGENCY TO PREPARE AN
URBAN RENEWAL PLAN FOR THE AREA TO INCLUDE A REVENUE
ALLOCATION PROVISION AS ALLOWED BY LAW; DIRECTING THE URBAN
RENEWAL AGENCY TO PREPARE A PLAN AMENDMENT TO THE DOWNTOWN
DISTRICT PLAN TO DEANNEX THE UNION DISTRICT AREA; AND PROVIDING
AN EFFECTIVE DATE.
WHEREAS, the City Council (the "City Council") of the City of Meridian, Idaho (the
"City"), found that deteriorating areas exist in the City, therefore, for the purposes of the Idaho
Urban Renewal Law of 1965, Chapter 20, Title 50, Idaho Code, as amended (the "Law"), created
an urban renewal agency pursuant to the Law, authorizing the agency to transact business and
exercise the powers granted by the Law and the Local Economic Development Act, Chapter 29,
Title 50, Idaho Code, as amended (the "Act") upon making the findings of necessity required for
creating the Urban Renewal Agency of the city of Meridian, Idaho, also known as the Meridian
Development Corporation(the "Agency");
WHEREAS, the Mayor has duly appointed the Board of Commissioners of the Agency
(the "Agency Board"), which appointment was confirmed by the City Council;
WHEREAS, on October 8, 2002, the City Council after notice duly published, conducted
a public hearing on the Meridian Revitalization Plan Urban Renewal Project, which is also
referred to as the Downtown District (the "Downtown District Plan");
WHEREAS, following said public hearing, on December 2, 2002, the City Council
adopted Ordinance No. 02-987 approving the Downtown District Plan;
WHEREAS, on June 14, 2016, the City Council, after notice duly published, conducted
a public hearing on The Ten Mile Road Urban Renewal Plan (the "Ten Mile Plan"). The public
hearing was continued to June 21, 2016, for further testimony;
RESOLUTION ACCEPTING ELIGIBILITY FOR THE UNION DISTRICT AREA AS AN URBAN RENEWAL AREA-PAGE 1 OF 4
WHEREAS, following said public hearing, on June 21, 2016 the City Council adopted
Ordinance 16-1695 approving the Ten Mile Plan;
WHEREAS, the Downtown District Plan and the Ten Mile Plan and their project areas
are collectively referred to herein as the "Existing Project Areas;"
WHEREAS,based on inquiries and information presented by certain interested parties
and property owners, the Agency commenced certain discussions concerning examination of an
underdeveloped area of approximately 16 acres in size and currently within the Downtown
District Plan Project Area boundaries as appropriate for an urban renewal project. The area is
generally east of Main Street, south of Idaho Avenue, west of E. 3rd Street, and north of the
Union Pacific Railroad right-of-way. The area is commonly referred to as the Union District
Area;
WHEREAS,the City and Agency commenced certain further discussions concerning
examination of the Union District Area as appropriate for an urban renewal project;
WHEREAS, during 2019, Kushlan and Associates and SMR Development LLC
commenced an eligibility study and prepared an eligibility report for the Union District Area,
which area may be subject to de-annexation from the Downtown District Plan Project Area;
WHEREAS,the Agency obtained Union District Urban Renewal District Eligibility
Report, dated February 2020 (the "Report"), which examined the Union District Area for the
purpose of determining whether such area was a deteriorating area and/or deteriorated area as
defined by Idaho Code Sections 50-2018(9) and 50-2903(8);
WHEREAS,the Report, 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, the effects of the listed conditions cited in the Report result in economic
underdevelopment of the area, substantially impairs or arrests the sound growth of a
municipality, constitutes an economic or social liability, and is a menace to the public health,
safety, morals, or welfare in its present condition or use;
WHEREAS, the Agency, on February 26, 2020, adopted Resolution No. 20-003 (a copy
of which is attached hereto as Exhibit B and incorporated herein by this reference, without
attachments thereto) accepting the Report and authorizing the Chairman, Vice-Chairman or
Administrator of the Agency to transmit the Report to the City Council requesting its
consideration for designation of an urban renewal area and requesting the City Council to direct
the Agency to prepare an urban renewal plan for the Union District Area, which plan may
include a revenue allocation provision as allowed by law;
RESOLUTION ACCEPTING ELIGIBILITY FOR THE UNION DISTRICT AREA AS AN URBAN RENEWAL AREA-PAGE 2 OF 4
WHEREAS, the Report includes a preliminary analysis concluding the base assessment
roll value for the Union District Area along with the base assessment rolls for the Existing
Project Areas do not exceed 10% of the overall current(2019)taxable property value of the City;
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; and
WHEREAS, it is desirable and in the best public interest that the Agency prepare an
urban renewal plan for the area identified as the Union District Area in the Report located in the
city of Meridian, county of Ada, state of Idaho.
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 finds and declares that the Union District Area identified
in the Report, which area may be subject to de-annexation, is a deteriorated or deteriorating area,
as defined in Title 50, Chapter 20 and 29, Idaho Code, as amended, 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 directs the
Agency to commence preparation of a plan amendment to the Downtown District Plan to
deannex the Union District Area from the Downtown District Plan Project Area for consideration
by the Agency Board and, if acceptable, final consideration by the City Council in compliance
with Title 50, Chapters 20 and 29, Idaho Code, as amended.
Section 4. Having made such designation, the City Council hereby directs the
Agency to commence preparation of an urban renewal plan for the Union District Area for
consideration by the Agency Board and, if acceptable, final consideration by the City Council in
compliance with Title 50, Chapters 20 and 29, Idaho Code, as amended.
RESOLUTION ACCEPTING ELIGIBILITY FOR THE UNION DISTRICT AREA AS AN URBAN RENEWAL AREA-PAGE 3 OF 4
Section 5. 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 loth day of
March, 2020.
APPROVED by the Mayor of the City of Meridian, Idaho, this loth day of March, 2020
APPROVED:
Mayor Robert E. Simison
ATTEST:
By:
Chris Johnson, City Clerk
RESOLUTION ACCEPTING ELIGIBILITY FOR THE UNION DISTRICT AREA AS AN URBAN RENEWAL AREA-PAGE 4 OF 4
EXHIBIT A
ELIGIBILITY
REPORT
Union District
Urban Renewal District
Eligibility Report
Prepared for
Galena Opportunity Inc.
Meridian Development Corporation
City of Meridian
February 2020
Kushlan I Associates
SMR Development, LLC
Boise, Idaho
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EXHIBIT A-ELIGIBILITY REPORT—UNION DISTRICT URBAN RENEWAL DISTRICT
Introduction:
Kushlan I Associates and SMR Development, LLC were retained by the Galena
Opportunity Inc. to assist them in their discussions with the Urban Renewal
Agency of the City of Meridian, Idaho, also known as Meridian Development
Corporation(the"Agency' or"MDC") and the City of Meridian (the "City") with
regard to establishing a new urban renewal district in the City.
The Mayor,with the confirmation of the City Council,has appointed nine members
to the Agency Board to guide the development of urban renewal plans and oversee
their implementation.The current membership of the Agency Board is as follows:
Chair: David Winder
Vice Chair Nathan Mueller
Secretary Steve Vlassek
Commissioners Dan Basalone
Treg Bernt
Diane Bevan
Tammy de Weerd
Kit Fitzgerald
Rob McCarvel
Urban Renewal
Administrator: Ashley Squyres
Idaho Code §50-20o6 states: "URBAN RENEWAL AGENCY. (a)There is hereby
created in each municipality an independent public body corporate and politic to
be known as the"urban renewal agency"that was created by resolution as provided
in section 50-2005,Idaho Code,before July 1,2011,for the municipality.."to carry
out the powers enumerated in the statutes. The Meridian City Council adopted
Resolution 01-367 on July 24,20o1 bringing forth those powers within the City of
Meridian.
The MDC currently oversees the implementation of two urban renewal districts.
The Meridian Revitalization Plan is the original district, which focuses on the
revitalization of the downtown (the"Downtown District"). It was established by
the City Council's adoption of Ordinance No. 02-987 on December 3, 2002. The
Downtown District is set to expire in 2026.
The Urban Renewal Plan forthe Ten Mile Road-A Urban Renewal Project(the"Ten
Mile District")was created by the Meridian City Council on June 21,2016 through
the adoption of Ordinance No. 16-1695. It is scheduled to expire on December 31,
2o36.
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EXHIBIT A-ELIGIBILITY REPORT—UNION DISTRICT URBAN RENEWAL DISTRICT
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Background:
The development of the community of Meridian started in the i88os 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,and
1893 is generally regarded as the year of the City's founding. That name grew in
primary use as the name of the settlement and the Village of Meridian was
incorporated in 19o3 with a population of approximately 200.
Meridian's traditional economy focused on the support of the surrounding
agricultural activities. A maj or creamery was established in the community in 1897
to support the nearby dairies. Fruit orchards were located throughout the area.
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EXHIBIT A-ELIGIBILITY REPORT—UNION DISTRICT URBAN RENEWAL DISTRICT
Meridian was a significant stop on the Interurban electric railway from 19o8 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 61g people growing to 2,616 by 196o. However,starting in 1970 the
pace of growth in Southwest Idaho quickened. Meridian's growth initially
reflected, and then exceeded the regional growth 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
196o 2,616
1970 6,658
1990 9,596
2000 34,919
2010 75,092
2019 (Estimate) 1o61804
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 and other systems are all integral elements of an
economically viable community. With the significant growth rate and
corresponding extension of infrastructure Meridian has a significant amount of
capital maintenance and capital improvements looming on the near horizon.
Title 50, Chapters 20 and 29, the Urban Renewal Law of 1965 and the Local
Economic Development Act contain some of the few tools that are available to
cities to help fund public improvements. New sources of State support are not
likely to become available in the foreseeable future,thus the Agency's interest in
exploring the potential for establishing their third urban renewal district is
appropriate. Coupling that State support with the private sector investment
potential created by the Opportunity Zone program created under the 2017 Tax
Cuts and Jobs Act Tax Reform and further implemented by the IRS under Internal
Revenue Code §1400Z-1 and §1400Z-2 could catalyze significant future
revitalization.
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EXHIBIT A-ELIGIBILITY REPORT—UNION DISTRICT URBAN RENEWAL DISTRICT
Demographics:
According to the US Census Bureau,the estimated 2019 population of the City is
io6,804 which is a 38.8%increase since 2010.This growth rate is more than three
times of that experienced statewide which was 11.9%during that period. Meridian
has been acknowledged as one of the fastest growing cities in the United States.
At 28.5%, the City's percentage of people under 18 years of age exceeds the
statewide percentage of 25.5% by 3.0%. The percentage of population under 5
years of age exceeds the statewide figure by 0.3% (6.9%vs. 6.6%).The percentage
of the City's population over 65 years of age (12.1%) is less than the statewide
percentage (15.9%) by 3.8%. These statistics reflect a population base that is
considerably younger than that found statewide.
Housing units are 76.2% owner-occupied as opposed to the statewide statistic of
69.2%.Median value of owner-occupied housing units is$221,300 as compared to
$176,80o statewide. Monthly owner costs with mortgage is$1,381 as compared to
the statewide figure of$1,195.Median gross rent in the City of Meridian is reported
as$1,016 as compared to$792 statewide.
When income statistics are compared to statewide numbers, we see that the
population of the City exceeds the rest of Idaho in these categories as well. The
median household income in the City is $64,375, approximately 26% above the
statewide figure of$50,985.Per capita monthly income for the City's population is
$29,857 as compared to the statewide number of$25,471. The percentage of the
City's population below poverty level is 9.8%as compared to the statewide number
of 11.8%.
These statistics suggest that the City's population is in an enviable position as
compared to many Idaho communities. However,the capital and service delivery
demands presented by the startling level of growth,when considered in the context
of the fiscal limitations on Idaho local government suggest that utilizing existing
investment mechanisms such as found in Title 50,Chapters 20 and 29 is a prudent
exercise of local legislative authority.
Statistics are derived from the latest United States Census Bureau Report.
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. We have called this 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:
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EXHIBIT A-ELIGIBILITY REPORT—UNION DISTRICT URBAN RENEWAL DISTRICT
1. The Presence of a Substantial Number of Deteriorated or
Deteriorating Structures and Deterioration of Site 150-2018(9) and
50-2903(8)(b)]
2. Age or Obsolescence 150-2018(8)and 50-2903(8)(a)]
3. Predominance of Defective or Inadequate Street Layout 150-2018(9)
and 50-2903(8)(b)]
4. Faulty Lot Layout in Relation to Size, Adequacy, Accessibility, or
Usefulness 150-2018(9)and 50-2903(8)(b)]
5. Insanitary or Unsafe Conditions 150-2018(9)and 50-2903(8)(b)]
6. Diversity of Ownership 150-2018(9)and 50-2903(8)(b)]
7. Tax or Special Assessment Delinquency 150-2018(9) and 50-
2903(8)(b)]
8. Defective or Unusual Conditions of Title 150-2o18(9) and 50-
2903(8)(b)]
9. Results in Economic Underdevelopment of the Area[50-2903(8)(b)]
10. Substantially Impairs or Arrests the Sound Growth of a Municipality
150-2018(9)and 50-2903(8)(b)]
If the Eligibility Report finds that one or more of the conditions noted above exists
within the Study Area,then the Agency may accept the findings and forward the
Eligibility Report to the City Council for their consideration. If the City Council
concurs with the determination of the Agency, they may direct that an Urban
Renewal Plan be developed for the area that addresses the issues raised in the
Eligibility Report.
The 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 Agency Board forwards it to the
City Council for their consideration.
The City Council must refer the Urban Renewal Plan to the Planning and Zoning
Commission to determine whether the Plan, as presented, is consistent with the
City's Comprehensive Plan and make a corresponding finding.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
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EXHIBIT A-ELIGIBILITY REPORT—UNION DISTRICT URBAN RENEWAL DISTRICT
Plan,their concurrence is not required for the City Council to proceed with formal
consideration.
Once the Planning and Zoning Commission makes their finding of conformity and
the thirty-day comment period 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 must also find that the taxable value of the district to be created
plus the Base Assessed Value of any existing Urban Renewal/Revenue Allocation
Area does not exceed the statutory maximum of lo% 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 Agency then proceeds to implement the Plan.
Description of the Union District Study Area:
The Study Area subject to the current review(Union District) is located primarily
in the central part of the City, on the edge of the traditional downtown area and
consists of 15 parcels located on 1.512 acres. Eleven(11)of those parcels are under
the ownership of public entities and thus are statutorily exempt from property
taxes. Four(4) of those parcels represent condominium units located within the
Second and Broadway Condominium project and are occupied by the Community
Planning Association of Southwest Idaho(COMPASS)and Valley Regional Transit.
One of the parcels is the common-area land on which the condominium units are
constructed and the 0.54 acre parcel to the east serves as surface parking in
support of the condominium project and other adjacent uses. Older commercial
buildings on the northerly portion of the Study Area have been converted to public
use as adjunct library space and as an interim community center. A small
municipal park is located at the extreme northeast corner of the Study Area.
Currently,the Study Area is located within the Downtown District; however, the
Agency is taking steps to amend the Downtown District Plan to de-annex the Study
Area parcels.
The southerly portion of the Study Area is occupied by older structures located on
large parcels and used for the storage and sale of building materials. The extreme
southern boundary of the Study Area is occupied by the Right-of-Way of the Union
Pacific Railroad.
The Study Area encompasses fifteen (15) individual tax parcels. Only the area in
the southern portion of the Study Area is taxable. The railroad right-of-way is
regarded as"Utility Operating Property"under State Law and as such is assessed
separately by the Idaho State Tax Commission.
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EXHIBIT A-ELIGIBILITY REPORT—UNION DISTRICT URBAN RENEWAL DISTRICT
Table 1 reflects the data for each of the 15 tax parcels represented in the Study Area:
Table 1
Tax Parcel Owner Acres Land Value Improvem Total Value %Impr.
ent value Value/
Land Value
Publicly Owned Parcels
R5672000856 City of Meridian 0.33 $o $0 $0 N/A
R5672000870 Meridian Free Library 0.05 $o $0 $0 N/A
District
R7596000080 City of Meridian o.16 $o $o $0 N/A
R7596000075 City of Meridian 0.08 $o $0 $0 N/A
R7596000065 City of Meridian o.16 $o $0 $0 N/A
R7596000092 Meridian Development 0.54 $o $o $0 N/A
Corporation
R7794650100 Second&Broadway N/A $o $o $o N/A
Condominium Owners
Association
R7794650200 Second&Broadway N/A $o $o $0 N/A
Condominium Owners
Association
R7794650300 Second&Broadway N/A $o $0 $0 N/A
Condominium Owners
Association
R7794650400 Second&Broadway N/A $o $0 $0 N/A
Condominium Owners
Association
R7794650500 Second&Broadway N/A $o $o $0 N/A
Condominium Owners
Association
Subtotal Publicly Owned $o $0 $0
Privately Owned Parcels
S1107325600 Oregon Short Line R R 44 $1,322,800 $168,800 $1,491,600 13%
Co
S1107325700 Oregon Short Line R R o.96 $43o,600 $105,100 $535,700 24%
Co
R7596000545 Oregon Short Line R R o.832 $680,400 $444,800 $1,125,200 65%
Co
R7596000545-A Oregon Short Line R R R-O-W $o $o $0
Co
Subtotal Privately Owned 6.192 $i,8i6,goo $346,480 $2,163,380
Grand Total 12 $1 816 oo $346,48o $2,i63,38o
The Study Area is+/-15.86 acres,of which+/-7.512 acres include privately and
publicly owned parcels. The differential includes public and railroad rights-of-
way.
Please see the map below for a graphic representation of the Union
District Study Area.
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EXHIBIT A-ELIGIBILITY REPORT—UNION DISTRICT URBAN RENEWAL DISTRICT
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Analysis of the Study Area:
The Study Area consists of 15 tax parcels representing 7.512 acres(not including
rights-of-way)located in the central part of the City. It is located generally east of
Main Street and south of Idaho Avenue. It is a mixture of commercially and
industrially zoned properties. The portion of the Study Area fronting the western
edge of NE 3rd Street, south of Broadway Avenue currently is designated as City
of Meridian I-L Light Industrial. The remaining properties located both north
and south of Broadway Avenue are designated as City of Meridian O-T Old Town.
The City of Meridian Code under Title ii details the purpose of the O-T zoning
designation as follows:
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EXHIBIT A-ELIGIBILITY REPORT—UNION DISTRICT URBAN RENEWAL DISTRICT
"Old Town District(O-T): The purpose of the O-T District is to accommodate and
encourage further intensification of the historical City center in accord with the
Meridian Comprehensive Plan. The intent of the 0-T District is to delineate a
centralized activity center and to encourage its renewal,revitalization and growth as
the public,quasi-public,cultural,financial and recreational center of the City.Public
and quasi-public uses integrated with general business, and medium high to high
density residential is encouraged to provide the appropriate mix and intensity of
activities necessary to establish a truly urban City center."
None of the parcels included within the Study Area have been used for agricultural
or forestry purposes during the past three years,negating the requirement to gain
specific consent of any property owner of such a property for inclusion in an urban
renewal district.
While public entities have made significant investment in the portions of the
northern part of the Study Area with park and parking improvements and a
building to house regionally focused governmental organizations,a detailed review
of the Study Area reflects a pattern of underinvestment and disinvestment over
time. The American Institute of Appraisers suggests that an economically viable,
developed property would reflect a ratio of 30%land to 70%improvements.After
initial improvements are made, without continuing reinvestment, the
improvement ratio declines;and as it approaches par,a condition of disinvestment
or deterioration is assumed.
Table 1 above shows that all the privately held properties located within the Study
Area reflect this condition.The property located at 632 North Main Street reflects
improvement value at only 13%of land assessed value and for the property located
at 415 East Broadway, the improvement value is only 65% of land value. The
structures are old and occupy only a small portion of the applicable sites. A recent
site survey has indicated that the light industrial uses formerly conducted on these
parcels have terminated and the properties now stand vacant, except for the
unused buildings and surface parking. This condition stands in stark contrast to
the vision expressed for the area in various City planning documents.
Streets: The north half of Broadway Avenue as well as Idaho Avenue, end Street
and the westerly portion of 3rd street north of Broadway have been improved to
current City of Meridian standards with curbs,gutters,street lighting and storm
drainage facilities.A portion of the south side of Broadway remains unimproved
as does the east side of 3rd Street through the Study Area. The west side of 3rd Street
south of Broadway has curb and gutters in place with an adjacent narrow sidewalk
which is interrupted by several unused curb cuts. The sidewalk appears
unmaintained and is of insufficient width to accommodate the high-density
activity envisioned in City planning documents.
Water: As identified in the recent ALTA Survey conducted by Sawtooth Land
Surveyors and dated 12/2019, water lines exist in Main Street, 3rd Street and
Broadway Avenue as well as on the south side of the Railroad property. However,
the latter water line does not extend the full length of the property and therefore is
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EXHIBIT A-ELIGIBILITY REPORT—UNION DISTRICT URBAN RENEWAL DISTRICT
not looped into the Main Street line. The water main in 3rd Street will likely have
to be increased from a 6"to a 12"main. This represents a serious deficiency with
respect to fire flows required for the proposed project.
Sewer Collection: Although a proposed project has not been reviewed by the City
Public Works Department, existing sewer lines may be adequate to serve future
development.
Pedestrian facilities: Significant investment has been made in the pedestrian
facilities in the northerly block of the Study Area. However, the system is
incomplete. No facilities exist of the east side Of 3rd Street, nor the south side of
Broadway Avenue. The introduction of the large number of residents anticipated
will require the completion of the pedestrian network.
Storm Drainage: Although a proposed project has not been reviewed by the City
Public Works Department, existing storm drainage may be adequate to serve
future development.
Rail Crossing: The extreme southerly portion of the Study Area consists of the
right-of-way for the Union Pacific Railway. The tracks located within the right-of-
way accommodate active freight rail service and are used on a daily basis. These
tracks serve as the primary transit corridor for freight movements from Boise and
Meridian to the Union Pacific Mainline connection located in Nampa. The 3ra
Street crossing of the rail line is protected only by stop signs. Given the high-
density development envisioned in the area and the resultant increase in vehicular
and pedestrian traffic,the limited crossing protection currently affordedwill prove
inadequate.
Irrigation Facilities: The Hunter Lateral is a historic irrigation facility that enters
the study area from the east crossing 3rd Street near the intersection with Broadway
Avenue and fronts the easterly parcels in the Study Area facing Broadway on the
south side of the street. The lateral had existed within the Ada County Highway
District Right-of-way but recent actions by the developer of the proposed project
adjacent to the area have resulted in the acquisition of that portion of the right-of-
way in which the lateral exists. The Nampa — Meridian Irrigation District, who
owns and maintains the lateral, has retained an easement across the property to
allow its continued operation and maintenance. The existence of the easement will
limit the use of that area for development.
The lateral currently exists in an open ditch configuration along the Broadway
frontage and along most of the east side of the 3ra Street frontage. As the lateral
turns north across Broadway it enters an underground configuration and
continues in this piped arrangement throughout downtown. The open ditch
configuration can be considered adequate for the current light industrial uses but
as the area transitions to more intense uses the lateral will need to be enclosed
consistent with its treatment throughout the rest of downtown Meridian.
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EXHIBIT A-ELIGIBILITY REPORT—UNION DISTRICT URBAN RENEWAL DISTRICT
Required Findings Regarding Eligibility for the Study Area:
In order to make a finding that the Study Area is, in fact, eligible for being
considered for the establishment of an urban renewal district,one must compare
the conditions found in the area with the statutory criteria noted above. For the
convenience of the reader those criteria are repeated here:
1. The Presence of a Substantial Number of Deteriorated or
Deteriorating Structures and Deterioration of Site 150-2018(9);and
50-2903(8)(b)]
2. Age or Obsolescence 150-2018(8)and 50-2903(8)(a)]
3. Predominance of Defective or Inadequate Street Layout 150-2oi8(9)
and 50-2903(8)(b)]
4. Faulty Lot Layout in Relation to Size, Adequacy, Accessibility or
Usefulness 150-2018(9)and 50-2903(8)(b)]
5. Insanitary or Unsafe Conditions 150-2oi8(9)and 50-2903(8)(b)]
6. Diversity of Ownership 150-2018(9);50-2903(8)(b)]
7. Tax or Special Assessment Delinquency 150-2018(9) and 50-
2903(8)(b)]
8. Defective or Unusual Conditions of Title 150-2oi8(9) and 50-
2903(8)(b)]
9. Results in Economic Underdevelopment of the Area[50-2903(8)(b)]
10. Substantially Impairs or Arrests the Sound Growth of a Municipality
150-2018(g)and 50-2903(8)(b)]
Criterion #1: The Presence of a Substantial Number of Deteriorated or
Deteriorating Structures; and Deterioration of Site: As noted above all the
privately owned properties in the Study Area reflect improvement values less than
land values. This suggests that deteriorated or deteriorating structures exist or
properties are vacant. A site visit confirms the data — there are a substantial
number of old, dilapidated vacant structures in the Study Area with the
corresponding properties containing crumbling cement pads and other decaying
improvements.Therefore,Criterion#1 is met.
Criterion#2:Age or Obsolescence:Substantial investment has been made in the
northerly block of the Study Area,but the existing structure owned by the city is
old and does not meet the current needs of the community which has experienced
the aforementioned expansive growth. The majority of the Study Area south of
Broadway is either vacant or lightly used industrial property.The buildings that do
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EXHIBIT A-ELIGIBILITY REPORT—UNION DISTRICT URBAN RENEWAL DISTRICT
exist on the properties south of Broadway are old,in poor outdated condition and
not currently utilized.Given the designation in the City's Comprehensive Plan and
zoning documents,the current use as an essentially abandoned light industrial use
is obsolete.Therefore Criterion#2 is met.
Criterion #3: Predominance of Defective or Inadequate Street Layout.
Adequate right-of way exists to accommodate the new investment consistent with
the City's Comprehensive Plan. However, only part of the streets have been
improved to full urban standards as required under City of Meridian development
regulations. Full improvement to 3rd Street between Broadway Avenue and the
Union Pacific right-of-way will be required to accommodate the high-density
development. The pedestrian system will need to be completed and full crossing
protection will be needed. Therefore,Criterion#3 is met.
Criterion#4:Faulty Lot Layout in Relation to Size,Adequacy,Accessibility or
Usefulness.The lots located in the northern block of the Study Area are regularly
configured and consistent with the rest of the parcels in downtown Meridian. All
of the parcels in the northern block are owned by public entities and dedicated to
public activities.
The four(4) privately owned parcels within the south block of the Study Area are
large, and mostly vacant. One parcel is impacted by a 4o-foot-wide easement
benefitting the Nampa — Meridian Irrigation District that is located on the
southwest quadrant of the 3ra and Broadway intersection. This easement severely
limits the flexibility of development options in this location.
Currently the eastern-most parcels in the development vision are designated as
part of the parcels east of 3ra Street by the Ada County Assessor. Additionally,part
of the development vision is located on a part of the Union Pacific Railroad right-
of-way. These property anomalies will need to be rectified before the vision
expressed for the properties can be realized. Therefore,Criterion#4 is met.
Criterion #5: Insanitary or Unsafe Conditions. The substandard condition of
major portions of the streets, the lack of adequate storm drainage facilities, the
incomplete street lighting system and the lack of adequate pedestrian facilities,
inadequate fire flows point to current unsafe conditions that will be exacerbated as
development occurs consistent with the City's Comprehensive Plan. Therefore,
Criterion#5 is met.
Criterion#6:Diversity of Ownership.The 15 parcels examined in this study are
under the ownership or control of 4 entities; three public and one private.
Preliminary discussions with respect to the development proposal currently under
consideration suggests mutual support among the various property owners.
Therefore,Criterion#6 is not met.
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EXHIBIT A-ELIGIBILITY REPORT—UNION DISTRICT URBAN RENEWAL DISTRICT
Criterion #7: Tax or Special Assessment Delinquency: The records of the Ada
County Assessor do not reflect any tax or special assessment delinquency.
Therefore,Criterion#7 is not met.
Criterion#8:Defective or Unusual Conditions of Title:The property,currently
owned by the Oregon Short Line Railroad,includes certain reversionary clauses in
the deeds leading to potential conflicting claims of ownership. The known entities
or individuals who are heirs of the last living deeded owners of the fee interest in
the property,the Smith and Ellis families,have agreed to convey all of their interest
after significant efforts ("Known Underlying Fee Owners"). These Known
Underling Fee Owners or KFOs were determined by extensive genealogical and
other research. However,because of the unique and complex nature of the chain
of title, doubt and uncertainty still exists as to even the state of title even of the
KFOs, thereby necessitating a quiet title/declaratory judgment action. Further
there is an operating lease and easement that Oregon Short Line Railroad has
encumbering the entire property. These conditions are specifically what has
prevented the redevelopment of the property for more than 12 years of active
attempts to acquire. This condition provides sufficient information to make a
determination for most of the property in the Study Area and therefore Criterion 8
has been met.
Criterion #9: Results in Economic Underdevelopment of the Area: The
northerly block of the Study Area has seen investment in recent years in support
of various public uses. However, the majority of the land within the Study Area
remains underutilized and, in some cases, we see deteriorating and/or obsolete
uses.Therefore,Criterion#9 is met.
Criterion #io: Substantially Impairs or Arrests the Sound Growth of a
Municipality. The Study Area exists within the corporate limits of the City of
Meridian and abuts dense urban development on the north, and west sides.
Despite considerable interest in redeveloping this underutilized area on the edge
of the historic downtown area, no progress has been made during the ten-year
effort to transform the area consistent with the vision expressed in the City's
planning documents. The ownership and title issues and lack of adequate
infrastructure within most of the Study Area inhibits the development envisioned
in the City's Comprehensive Plan.Therefore,Criterion#io is met.
Findings: Union District Study Area: Conditions exist within the
Study Area to allow the Board of Commissioners of the Agency and the City Council
to determine that the area is eligible for urban renewal activities as prescribed in
State Law.
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EXHIBIT A-ELIGIBILITY REPORT—UNION DISTRICT URBAN RENEWAL DISTRICT
Criteria Met Not
Met
1 The Presence of a Substantial Number of Deteriorated X
or Deteriorating Structures;and Deterioration of Site
2 Age or Obsolescence X
3 Predominance of Defective or Inadequate Street X
Layout
4 Faulty Lot Layout in Relation to Size,Adequacy, X
Accessibility or Usefulness
5 Insanitary or Unsafe Conditions X
6 Diversity of Ownership X
7 Tax or Special Assessment Delinquency X
8 Defective or unusual condition of title X
9 Results in Economic Underdevelopment of the Area X
10 Substantially Impairs or Arrests the Sound Growth of X
a Municipality
Analysis: Open Land Conditions: The parcels located within the
Study Area have been located within the City limits of Meridian for decades and
have been dedicated to various urban uses. Therefore,the provisions of Idaho
Code Section 50-2903(8)(c)and 50-20o8(d)do not apply.
Conclusion: Based upon our review of the data and the conditions that exist
within the Study Area as noted above, one or more of the necessary criteria have
been met and therefore the Meridian City Council may determine that the Union
District Urban Renewal District, as proposed, is eligible for the establishment of
an urban renewal district.
Other Relevant Issues:
Agricultural Landowners Concurrence: None of the area within the
Study Area maintains an agricultural land property tax exemption as authorized
under state law. The statutory provisions concerning the creation of an urban
renewal district prohibit inclusion of any land used for agricultural purposes
without the express written consent of the property owner. Given that no such
exemptions exist nor have existed during the previous three years,consent is not
required.
10% Analysis: In addition to the findings reported above, we also sought to
verify that the assessed value of the proposed Study Area is within the statutory
limits.As noted above, State Law limits the percentage of assessed value that can
be included in urban renewal / revenue allocation districts to io% of the total
valuation of the City.According to Ada County Assessor records,the most recent
certified value for the City is $9,465,76o,oii.The taxable value of the Study Area
is $2,162,38o representing 0.023% of the total City assessed value. The Base
15 1 Page
EXHIBIT A-ELIGIBILITY REPORT—UNION DISTRICT URBAN RENEWAL DISTRICT
Assessed Value of the Downtown District is $131,252,90o and the Ten Mile Road
District is $12,582,900. The Table below shows the result compared to the
statutory requirement.
tatut0ry io%Limitation Analysis
Area Base Assessed Percentage
Value
Total City $ 465 760 oil 100%
• Downtown District URD $131,252,900 1.39%
• Ten Mile Road URD $12,582,900 0.133%
• Proposed Union District URD $2,163,380 0.023%
Total UR Base Assessed Value Percentage $145 8 180 1.54%
We also explored the effect of creating this district on the capacity of the Urban
Renewal Agency to consider future districts should they choose to do so.The table
below shows that even if a new district similar to Union District were to be
established, approximately 8.46% of the citywide assessed value would remain
uncommitted.
Remaining Urban Renewal Capacity
• Maximum lo%Limitation $946,576,001 10%
• Downtown District URD $131,252,900 1.387%
• Ten Mile Road URD $12,582,900 0.133%
• Proposed Union District URD $2,162,380 0.023%
• Total AV in Revenue Allocation Areas $145,998,18o 1.54%
• Available AV under limitation $800,576,00i 8.46%
4838-5478-2132,v.3
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EXHIBIT A-ELIGIBILITY REPORT—UNION DISTRICT URBAN RENEWAL DISTRICT
EXHIBIT B
MDC AGENCY
RESOLUTION
I
MERIDIAN DEVELOPMENT CORPORATION j
THE URBAN RENEWAL AGENCY OF THE CITY OF MERIDIAN
RESOLUTION NO.20-003
BY THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY
OF MERIDIAN, IDAHO,A/K/A THE MERIDIAN DEVELOPMENT CORPORATION:
i
A RESOLUTION OF THE BOARD OF COMMISSIONERS
OF THE URBAN RENEWAL AGENCY OF MERIDIAN,
IDAHO,ALSO KNOWN AS THE MERIDIAN
DEVELOPMENT CORPORATION,ACCEPTING THAT
CERTAIN REPORT ON ELIGIBILITY FOR CERTAIN
PROPERTY REFERRED TO AS THE UNION DISTRICT j
AREA AS AN URBAN RENEWAL AREA AND REVENUE
ALLOCATION AREA AND JUSTIFICATION FOR
DESIGNATING THE AREA AS APPROPRIATE FOR AN
URBAN RENEWAL PROJECT;AUTHORIZING AND
DIRECTING THE CHAIRMAN,VICE-CHAIRMAN OR
ADMINISTRATOR TO TRANSMIT THE REPORT AND
THIS RESOLUTION TO THE CITY COUNCIL OF THE CITY
OF MERIDIAN REQUESTING ITS CONSIDERATION FOR
DESIGNATION OF AN URBAN RENEWAL AREA AND
SEEKING FURTHER DIRECTION FROM THE COUNCIL;
AND PROVIDING AN EFFECTIVE DATE.
THIS RESOLUTION, made on the date hereinafter set forth by the Urban
Renewal Agency of Meridian, Idaho,also known as the Meridian Development
Corporation,an independent public body, corporate and politic,authorized under the
authority of the Idaho Urban Renewal Law of 1965,Chapter 20,Title 50, Idaho Code,as
amended (the"Law"), a duly created and functioning urban renewal agency for
Meridian, Idaho, hereinafter referred to as the"MDC."
WHEREAS,on July 24, 2001,the City Council (the"City Council")of the City of
Meridian, Idaho(the"City"), adopted Resolution No.01-367 establishing MDC;
WHEREAS,on October 8,2002,the City Council, after notice duly published,
conducted a public hearing on the Meridian Revitalization Plan Urban Renewal Project,
which is also referred to as the Downtown District(the"Downtown District Plan");
WHEREAS,following said public hearing, the City Council adopted its Ordinance
No. 02-987 on December 3, 2002, approving the Downtown District Plan and making
certain findings;
RESOLUTION NO.20-003- 1
EXHIBIT B—MDC RESOLUTION 20-003
WHEREAS, on June 14, 2016,the City Council, after notice duly published, j
conducted a public hearing on The Ten Mile Road Urban Renewal Plan (the"Ten Mile
Plan"). The public hearing was continued to June 21, 2016, for further testimony;
WHEREAS,following said public hearing,the City Council adopted its Ordinance
No. 16-1695 on June 21, 2016, approving the Ten Mile Plan and making certain
findings;
WHEREAS, based on inquiries and information presented by certain interested
parties and property owners, MDC commenced certain discussions concerning
examination of an area as appropriate for an urban renewal project;
WHEREAS, in 2019, Kushlan I Associates and SMR Development, LLC
commenced an eligibility study and preparation of an eligibility report for an area about
16 acres in size and currently located within the boundaries of the Downtown District
Plan,which area may be subject to de-annexation. The area is generally east of Main
Street, south of Idaho Avenue, west of E. 3rd Street, and north of the Union Pacific
Railroad right-of-way. The eligibility study area is commonly referred to as the Union
District area;
WHEREAS, MDC has obtained an eligibility report(the"Report"),which
examined the Union District Area for the purpose of determining whether such area was
a deteriorating area and/or a deteriorated area as defined by Idaho Code Sections 50-
2018(9)and 50-2903(8);
WHEREAS, the Report, dated February 2020, has been submitted to MDC, a
copy of which is attached hereto as Exhibit A;
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;
WHEREAS,the MDC Board finds it in the best public interest to accept the
Report.
NOW,THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE BOARD
OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF MERIDIAN, IDAHO,
AS FOLLOWS:
Section 1. That the above statements are true and correct.
RESOLUTION NO.20-003-2
EXHIBIT B—MDC RESOLUTION 20-003
Section 2. That the Board acknowledges acceptance and receipt of the
Report.
Section 3. That there are one or more areas within the City that are a
deteriorating area or a deteriorated area as defined by Idaho Code Sections 50-2018(9)
and 50-2903(8).
Section 4. That one such area is an area approximately 16 acres in size and
currently located within the boundaries of the Downtown District Plan,which area may
be subject to de-annexation, and more commonly known as the Union District area.
The area is generally east of Main Street, south of Idaho Avenue,west of E. 3rd Street,
and north of the Union Pacific Railroad right-of-way.
Section 5. That the rehabilitation, conservation, and redevelopment, or a
combination thereof,of such area is necessary in the interest of the public health,
safety, and welfare of the residents of the City.
Section 6. That the Chairman or Vice-Chairman of the Board of
Commissioners,or the Administrator are hereby authorized to transmit the Report to the
Meridian City Council requesting that the City Council:
a. Determine whether the Union District area identified in the Report
qualifies as an urban renewal project and there is justification for designating the area,
as appropriate,for an urban renewal project;
b. If such designation is made,whether MDC should proceed with the
preparation of an urban renewal plan for the area, which plan may include a revenue
allocation provision as allowed by law;
C. If such designation is made whether MDC should proceed with the
preparation of a plan amendment to the Downtown District Plan to deannex the Union
District Area.
Section 7. That this Resolution shall be in full force and effect immediately
upon its adoption and approval.
RESOLUTION NO.20-003-3
EXHIBIT B—MDC RESOLUTION 20-003
I
PASSED AND ADOPTED by the Urban Renewal Agency of the City of Meridian, I
Idaho, also known as the Meridian Development Corporation, on February 26, 2020.
Signed by the Chairman of the Board of Commissioners and attested by the Secretary
to the Board of Commissioners, on February 26, 2020.
APPROVED:
By
C air of the Board
ATTEST:
Secreta !
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RESOLUTION NO.20-003-4
EXHIBIT B—MDC RESOLUTION 20-003