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Union District Plan with all attachments URBAN RENEWAL PLAN FOR THE UNION DISTRICT URBAN RENEWAL PROJECT MERIDIAN URBAN RENEWAL AGENCY (also known as Meridian Development Corporation) CITY OF MERIDIAN, IDAHO Ordinance No. Adopted Effective TABLE OF CONTENTS Page 100 INTRODUCTION.............................................................................................................. 1 101 General Procedures of the Agency ......................................................................... 4 102 Procedures Necessary to Meet State and Local Requirements: Conformance with Idaho Code Sections 50-2008 and 50-2906............................................................ 5 103 History and Current Conditions of the Area........................................................... 5 104 Purpose of Activities............................................................................................... 7 200 DESCRIPTION OF PROJECT AREA............................................................................... 9 300 PROPOSED REDEVELOPMENT ACTIONS.................................................................. 9 301 General.................................................................................................................... 9 302 Urban Renewal Plan Objectives ........................................................................... 12 303 Participation Opportunities and Participation Agreements................................... 13 304 Cooperation with Public Bodies........................................................................... 15 305 Property Acquisition............................................................................................. 16 305.1 Real Property 16 305.2 Personal Property...................................................................................... 17 306 Property Management.......................................................................................... 17 307 Relocation of Persons (Including Individuals and Families), Business Concerns, and Others Displaced by the Project..................................................................... 17 308 Demolition, Clearance and Site Preparation......................................................... 18 309 Property Disposition and Development................................................................ 18 309.1. Disposition by the Agency........................................................................ 18 309.2 Disposition and Development Agreements .............................................. 19 309.3. Development by the Agency.......--......................................................... 20 310 Development Plans ............................................................................................... 21 311 Personal Property Disposition.............................................................................. 21 312 Participation with Others ...................................................................................... 21 313 Conforming Owners..............................................................................................22 314 Arts and Cultural Funding .................................................................................... 22 400 USES PERMITTED IN THE PROJECT AREA.............................................................. 22 401 Designated Land Uses........................................................................................... 22 402 Public Rights-of-Way........................................................................................... 22 403 Other Public, Semi-Public, Institutional, and Nonprofit Uses............................. 23 404 Interim Uses.......................................................................................................... 23 405 Development in the Project Area Subject to the Plan........................................... 23 406 Construction Shall Comply with Applicable Federal, State, and Local Laws and Ordinances and Agency Development Standards................................................. 24 407 Minor Variations................................................................................................... 24 408 Design for Development under a Disposition and Development Agreement or Owner Participation Agreement........................................................................... 24 409 Nonconforming Uses ............................................................................................ 25 i 500 METHODS OF FINANCING THE PROJECT............................................................... 26 501 General Description of the Proposed Financing Methods.................................... 26 502 Revenue Allocation Financing Provisions............................................................ 26 502.1 Economic Feasibility Study...................................................................... 27 502.2 Assumptions and Conditions/Economic Feasibility Statement................ 28 502.3 Ten Percent Limitation ............................................................................. 29 502.4 Financial Limitation.................................................................................. 29 502.5 Participation with Local improvement Districts and Business Improvement Districts .............................................................................. 31 502.6 Issuance of Debt and Debt Limitation...................................................... 31 502.7 Impact on Other Taxing Districts and Levy Rate..................................... 31 503 Lease Revenue, Parking Revenue, and Bonds.......................................... 504 Membership Dues and Support of Community Economic Development ............ 34 600 ACTIONS BY THE CITY AND OTHER PUBLIC ENTITIES...................................... 34 601 Maintenance of Public Improvements.................................................................. 35 700 ENFORCEMENT............................................................................................................. 36 800 DURATION OF THIS PLAN, TERMINATION, AND ASSET REVIEW.................... 36 900 PROCEDURE FOR AMENDMENT OR MODIFICATION.......................................... 37 1000 SEVERABILITY.............................................................................................................. 38 1100 ANNUAL REPORT AND OTHER REPORTING REQUIREMENTS.......................... 38 1200 APPENDICES, ATTACHMENTS, EXHIBITS, TABLES ............................................. 38 ii Attachments Attachment I Boundary Map of Union District Urban Renewal Project Area and Revenue Allocation Area Attachment 2 Legal Description of Union District Urban Renewal Project Area and Revenue Allocation Area Attachment 3 Properties Which May be Acquired by the Agency Attachment 4 Map Depicting Expected Land Uses and Current Zoning Map of the Project Area Attachment 5 Economic Feasibility Study iii 100 INTRODUCTION This is the Urban Renewal Plan (the "Plan") for the Union District Urban Renewal Project (the "Project") in the city of Meridian (the "City"), county of Ada, state of Idaho. Attachments 1 through 5 attached hereto (collectively, the "Plan Attachments") are incorporated herein and shall be considered a part of this Plan. The term "Project"is used herein to describe the overall activities defined in this Plan and conforms to the statutory definition of an urban renewal project. Reference is specifically made to Idaho Code §§ 50-201 S(10) and 50-2903(13) for the various activities contemplated by the term "Project." Such activities include both private and public development of property within the urban renewal area. The term "Project" is not meant to refer to a specific activity or development scheme. The Union District Project Area is also referred to as the"Project Area." This Plan was prepared by the Board of Commissioners (the "Agency Board") of the Meridian Urban Renewal Agency, also known as Meridian Development Corporation (the "Agency"), its consultants and staff and reviewed and recommended by the Agency pursuant to the Idaho Urban Renewal Law of 1965, Chapter 20, Title 50, Idaho Code, as amended (the "Law"), the Local Economic Development Act, Chapter 29, Title 50, Idaho Code, as amended (the "Act"), and all applicable local laws and ordinances. Idaho Code § 50-2905 identifies what information the Plan must include with specificity as follows: (1) A statement describing the total assessed valuation of the base assessment roll of the revenue allocation area and the total assessed valuation of all taxable property within the municipality; (2) A statement listing the kind, number, and Iocation of all proposed public works or improvements within the revenue allocation area; (3) An economic feasibility study; (4) A detailed list of estimated project costs; (5) A fiscal impact statement showing the impact of the revenue allocation area, both until and after the bonds are repaid, upon all taxing districts levying taxes upon property on the revenue allocation area; (6) A description of the methods of financing all estimated project costs and the time when related costs or monetary obligations are to be incurred; (7) A termination date for the plan and the revenue allocation area as provided for in section 50-2903(20), Idaho Code. In determining the termination date, the plan shall recognize that the agency shall receive allocation of revenues in the calendar 1 year following the last year of the revenue allocation provision described in the urban renewal plan; and (8) A description of the disposition or retention of any assets of the agency upon the termination date. Provided however,nothing herein shall prevent the agency from retaining assets or revenues generated from such assets as long as the agency shall have resources other than revenue allocation funds to operate and manage such assets. This Plan includes the above information with specificity. The proposed redevelopment of the Project Area as described in this Plan conforms to the City of Meridian Comprehensive Plan (the "Comprehensive Plan"), adopted by the Meridian City Council (the "City Council") on December 17, 2019, by Resolution No. 19-2179. The Agency intends to rely heavily on the City's applicable zoning and design standards. This Plan is subject to the Plan modification limitations and reporting requirements set forth in Idaho Code § 50-2903A. Subject to limited exceptions as set forth in Idaho Code § 50-2903A, if this Plan is modified by City Council ordinance, then the base value for the year immediately following the year in which modification occurs shall include the current year's equalized assessed value of the taxable property in the revenue allocation area, effectively eliminating the Agency's revenue stream. Should the Agency have any outstanding financial obligations, the City shall not adopt an ordinance modifying this Plan unless modification is deemed to have not occurred as provided in Idaho Code § 50- 2903A(1)(a)(i)-(iv) and written consent has been obtained by any creditors, including but not limited to lending institutions and developers who have entered into reimbursement agreements with the Agency. A modification shall not be deemed to occur when "[tjhere is a plan amendment to support growth of an existing commercial or industrial project in an existing revenue allocation area . . . ." Idaho Code § 50-2903A(l)(a)(iv). The proposed development of the Project Area is primarily a commercial and/or industrial project. Any adjustment to the list of improvements and/or revenue stream to support growth of the proposed commercial and/or industrial project is not a modification under Idaho Code § 50-2903A. Further, a modification shall not be deemed to occur when i{[tjhere is a plan amendment to make technical or ministerial changes to a plan that does not involve an increase in the use of revenues allocated to the agency." Idaho Code § 50-2903A(1)(a)(i). Annual adjustments as more specifically set forth in the Agency's annual budget will be required to account for more/less estimated revenue and prioritization of projects. Any adjustments for these stated purposes are technical and ministerial and are not modifications under Idaho Code § 50-2903A. This Plan provides the Agency with powers, duties, and obligations to implement and further the program generally formulated in this Plan for the redevelopment, rehabilitation, and 2 revitalization of the area within the boundaries of the Project Area. The Agency retains all powers allowed by the Law and Act. This Plan presents a process and a basic framework within which plan implementation, including contracts, agreements and ancillary documents will be presented and by which tools are provided to the Agency to fashion, develop, and proceed with plan implementation. The Plan has balanced the need for flexibility over the twenty (20)-year timeframe of the Plan to implement the improvements identified in Attachment 5, with the need for specificity as required by Idaho Code § 50-2905. The Plan narrative addresses the required elements of a plan set forth in Idaho Code § 50-2905(1), (5), (7) and (8). Attachment 5, together with the Plan narrative, meets the specificity requirement for the required plan elements set forth in Idaho Code § 50-2905(2)-(6), recognizing that actual Agency expenditures are prioritized each fiscal year during the required annual budgeting process. Allowed projects are those activities which comply with the Law and the Act and meet the overall objectives of this Plan. The public-private relationship is crucial in the successful development and redevelopment of the Project Area. Typically, the public will fund enhanced public improvements like utilities, streets, and sidewalks which, in turn, establish the necessary infrastructure to support adjacent private investment, which in this case includes industrial and commercial facilities, The purposes of the Law and Act will be attained through, and the major goals of this Plan, are: a. The installation and construction of public improvements, improvements to existing roadways and intersections, including the installation of traffic signals; installation of curbs, gutters and streetscapes,which for purposes of this Plan, the term "streetscapes" includes sidewalks, lighting, landscaping, benches, bike racks, public art and similar amenities between the curb and right of way line; installation and/or improvements to fiber optic facilities; improvements to public utilities including water and sewer improvements, and fire protection systems; removal, burying, or relocation of overhead utilities; extension of electrical distribution lines and transformers; improvement of irrigation and drainage ditches and laterals; and improvement of storm drainage facilities; b. The planning, design and construction of a community center, useable public gathering space and a public structured parking facility or facilities; c. The planning, design and construction of a private development multi-purpose commercial and residential facility, and a public surface parking lot; d. The replanning, redesign, and development of undeveloped or underdeveloped areas which are stagnant or improperly utilized because of unusual conditions of title, underserved utilities, and other-site conditions; 3 e. The strengthening of the economic base of the Project Area and the community by the installation of needed public improvements to stimulate new private development providing employment and economic growth; f The provision of adequate land for open space, street rights-of-way and pedestrian rights-of-way, including pathways; g. The reconstruction and improvement of street corridors to allow traffic flows to move through the Project Area along with the accompanying utility connections, through the Project Area; h. The provision of public service utilities, which are necessary to the development of the Project Area, such as water system improvements, sewer system improvements and improvements to storm drainage facilities; i. In conjunction with the City, the establishment and implernentation of performance criteria to assure high site design standards and environmental quality and other design elements which provide unity and integrity to the entire Project Area, including commitment of firnds for planning studies, achieving high standards of development, and leveraging such development to achieve public objectives and efficient use of scarce resources; j. The strengthening of the tax base by encouraging private development, thus increasing the assessed valuation of properties within the Project Area as a whole and benefiting the various taxing districts in which the urban renewal area is located; and k. The funding of necessary public infrastructure to accommodate both public and private development. 101 General Procedures of the Agency The Agency is a public body, corporate and politic, as defined and described under the Law and the Act. The Agency is also governed by its bylaws as authorized by the Law and adopted by the Agency. Under the Law, the Agency is governed by the Idaho open meeting law, the Public Records Act and the Ethics in Government Act of 2015, Chapters 1, 2 and 4 of Title 74, Idaho Code; reporting requirements pursuant to Idaho Code §§ 67-450B, 67-450E, 50-2903A and 50-2913; and the competitive bidding requirements under Chapter 28, Title 67,Idaho Code, as well as other procurement or other public improvement delivery methods. Subject to limited exceptions, the Agency shall conduct all meetings in open session and allow meaningful public input as mandated by the issue considered or by any statutory or regulatory provision. 4 The Agency may adopt separate policy statements. Any modification to any policy statement is a technical or ministerial adjustment and is not a modification to this Plan under Idaho Code § 50-2903A. 102 Procedures Necessary to Meet State and Local Requirements: Conformance with Idaho Code Sections 50-2008 and 50-2906 Idaho law requires that the City Council, by resolution, must determine a geographic area be a deteriorated area or a deteriorating area, or a combination thereof, and designate such area as appropriate for an urban renewal project prior to preparation of an urban renewal plan. A consultant was retained to study a proposed project area and prepare an eligibility report. The area studied was originally reviewed for eligibility in 2001, and was deannexed from the boundaries of the existing Meridian Revitalization Plan Urban Renewal Project, adopted by City Council Ordinance No. 02-987, on December 3, 2002 (the "Downtown District Plan"), by the First Amendment to the Downtown District Plan, adopted by City Council Ordinance No. on 2020. The eligibility report was submitted to the Agency. The Agency accepted the eligibility report by Agency Resolution No. 20-003 on February 26, 2020, and thereafter submitted the eligibility report to the City Council for its consideration. The area studied was deemed by the City Council to be a deteriorating area and/or a deteriorated area and therefore eligible for an urban renewal project by adoption of Resolution No. 20-2188 on March 10, 2020. With the adoption of Resolution No. 20-2188, the City Council authorized the preparation of an urban renewal plan. The Plan was prepared and submitted to the Agency for its review and approval. The Agency approved the Plan by the adoption of Agency Resolution No. on , 2020, and submitted the Plan to the City Council with its recommendation for adoption. In accordance with the Law, this Plan was submitted to the Planning and Zoning Commission of the City. After consideration of the Plan, the Commission,by resolution, reported to the City Council that this Plan is in conformity with the City's Comprehensive Plan. Pursuant to the Law and Act, the City Council having published due notice thereof, a public hearing was held on this Plan. Notice of the hearing was published in the Meridian Press, a newspaper having general circulation in the City. The City Council adopted this Plan on [ _j, 2020, by Ordinance No. r 103 History and Current Conditions of the Area The Project Area is geographically discrete and contains approximately 16 acres of underdeveloped land and right-of-way near the City's downtown core and is generally bounded by E. Idaho Avenue to the north, E, Third Street to the east, a portion of the railroad right-of-way 5 to the south and N. Main Street to the west. The Project Area is zoned Old Town (OT), which is intended to encourage 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." Currently, a significant portion of the Project Area is under the ownership of public entities and older commercial buildings on the northerly end of the Project Area have been converted to public use as adjunct library space and an interim community center. This portion of the Project Area also includes a small, City park. The southerly end of the Project Area is occupied by older dilapidated structures located on large parcels and previously used for the sale and storage of building materials. This area also includes a portion of railroad right-of-way. The Project Area includes a total of fifteen (15) tax parcels. Despite the increasing development in the City, the Project Area has remained virtually unchanged over the last nineteen (19) years and does not reflect the vision for the area provided in City planning documents. While generally the roadways surrounding the block north of E. Broadway Avenue have been improved to current City standards with curbs, gutters, street lighting and storm drainage facilities, the area south of E. Broadway Avenue requires further investment in the public improvements. A portion of the south side of E. Broadway Avenue remains unimproved as does the east side of E. Yd Street. The west side of E. Yd Street south of E. Broadway Avenue 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. Improvements to the pedestrian facilities will serve the increased number of pedestrians anticipated in the Project Area and will help with connectivity. While water lines serve the Project Area, the water line located on the south side of the railroad property does not extend the fiill length of the property and therefore is not looped into the Main Street line. Further, the water main located in E. .3 Street will likely need to be upsized to a 12"main to serve the Project Area. These deficiencies are critical and require remediation to support the necessary fire flows required for increased density in the Project Area. A significant impediment to development has been the railroad parcels with attendant title issues. Multiple attempts at conveyance and development have occurred over the last several decades; however, the unusual conditions of title have likely stalled development, resulting in vacant, underutilized parcels. The E. Yd Street railroad crossing is currently protected only by stop signs. With increased density, additional protections at the crossing may be needed as the rail line is active and serves as the primary transit corridor for freight movements from Boise and Meridian to the railroad mainline connection in Nampa. Finally, the Project Area includes a portion of an open ditch lateral, the Hunter Lateral, which crosses E. Yd Street near the intersection with Broadway. As the lateral turns north across 6 E. Broadway Avenue, the lateral is piped and undergrounded. The open ditch in this area creates safety concerns for pedestrians. The Plan proposes improvements to public infrastructure and other publicly-owned assets throughout the Project Area, creating the framework for the development of a mixed-use, retail, office, residential project, including the development of a community/recreation center, as well as other public facilities and improvements, including but not limited to streets, streetscapes, water and sewer improvements, environmental and floodptain remediation/site preparation, public parking, other community facilities,parks, and pedestrian/bike paths and trails. The Project Area is underdeveloped and is not being used to its highest and best use due to the presence of a substantial number of deteriorating structures, deterioration of site, age and obsolescence, a predominance of defective or inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility or usefiulness, insanitary or unsafe conditions, and defective or unusual conditions of title. The foregoing conditions have resulted in economic underdevelopment of the area and has arrested or impaired growth in the Project Area. The preparation and approval of an urban renewal plan, including a revenue allocation financing provision, gives the City additional resources to solve the public infrastructure problems in this area. Revenue allocation financing should help to improve the situation. In effect, property taxes generated by new developments within the area may be used by the Agency to finance a variety of needed public improvements and facilities. Finally, some of the new developments may also generate new jobs in the community that would, in tuna., benefit area residents. It is unlikely individual developers will take on the prohibitive costs of constructing the necessary infrastructure in the Project Area without the ability of revenue allocation to help offset at least some of these costs. But for urban renewal and revenue allocation financing the proposed commercial and community developments and related public improvements would not occur. 104 Purpose of Activities Attachment 5 includes identification of the proposed public improvements necessary for the contemplated development in the Project Area with specificity. The description of activities, public improvements, and the estimated costs of those items are intended to create an outside limit of the Agency's activity. Due to the inherent difficulty in projecting future levy rates, future taxable value, and the future costs of construction, the Agency reserves the right to: a. Change funding amounts from one Project to another b. To re- prioritize the Projects described in this Plan and the PIan Attachments c. Retain flexibility in funding the various activities in order to best meet the Plan and the needs of the Project Area. d. Retain flexibility in determining whether to use the Agency's funds or funds generated by other sources. 7 e. Alter the location of proposed improvements set forth in Attachment 5 to support development when it occurs. The information included in Attachment 5 presents realistic alternative development scenarios recognizing it is difficult to project with any certainty where the improvements will be sited until any future projects submit plans to the City for design review and permitting. The Agency intends to discuss and negotiate with any owner or developer of the parcels within the Project Area seeping Agency assistance during the duration of the Plan and Project Area. During such negotiation, the Agency will determine, on an individual basis, the eligibility of the activities sought for Agency funding, the amount the Agency may fund by way of percentage or other criteria including the need for such assistance. The Agency will also take into account the amount of revenue allocation proceeds estimated to be generated from the developer's activities. The Agency also reserves the right to establish by way of policy, its funding percentage or participation,which would apply to all developers and owners and may prioritize certain projects or types of projects. Throughout this Plan, there are references to Agency activities, Agency funding, and the acquisition, development, and contribution of public improvements. Such references do not necessarily constitute a Rill, final, and formal commitment by the Agency but,rather, grant to the Agency the discretion to participate as stated subject to achieving the objectives of this Plan and provided such activity is deemed eligible under the Law and the Act. The activities listed in Attachment 5 will be determined or prioritized as the overall Project Area develops and through the annual budget setting process. The activities listed in Attachment 5 are also prioritized by way of importance to the Agency by the amounts funded, and by year of funding, with earlier years reflecting the more important activities, achievement of higher objectives, long term goals, and commitments. The projected timing of funding is primarily a function of market conditions and the availability of financial resources but is also strategic, considering the timing of private development partnership opportunities and the ability of certain strategic activities to stimulate development at given points in time within the planned 20-year period of the urban renewal district and revenue allocation area. The Study (Attachment 5) has described a list of prioritized public improvements and other related activities with an estimated cost in 2020 dollars of approximately $15,040,000.00 for improvements related to construction of a community center, public open spaces, construction of a public parking structure or structures and/or public surface parking facilities, and public improvements related to private development of mixed-use commercial, office, and residential buildings. This amount does not take into account inflationary factors, such as increasing construction costs,which would increase that figure depending on when the owner, developer and/or Agency is able to develop, construct or initiate those activities. The Study has concluded the capacity of revenue allocation funds through the term of the Plan based on the assumed development projects and assessed value increases will likely generate an estimated $16,286,437.00. Subject to the City's annual budgeting requirements and the availability of hinds, the City may contribute to the construction of the community facility in the amount of 8 $3,000,000.00. The Agency reserves the discretion and flexibility to use revenue allocation proceeds in excess of the amounts predicted in the event higher increases in assessed values occur during the term of the Plan for the improvements and activities identified. Additionally, the Agency reserves the discretion and flexibility to use other sources of funds unrelated to revenue allocation to assist in the funding of the improvements and activities identified. 200 DESCRIPTION OF PROJECT AREA The boundaries of the Project Area and the Revenue Allocation Area are shown on the Project Area and Revenue Allocation Boundary Map, attached hereto as Attachment l and incorporated herein by reference, and are described in the Legal Description of the Project Area and Revenue Allocation Area, attached hereto as Attachment 2 and incorporated herein by reference. For ptuposes of boundary descriptions and the use of proceeds for payment of improvements, the boundary shall be deemed to extend to the outer boundary of rights-of-way or other natural boundary unless otherwise stated. 300 PROPOSED REDEVELOPMENT ACTIONS 301 General The Agency proposes to eliminate and prevent the spread of deteriorating conditions and deterioration in the Project Area by employing a strategy to improve and develop public and private lands, and to grow the economy in the Project Area. Implementation of the strategy includes, but is not limited to the following actions: a. The engineering, design, installation, construction, and/or reconstruction of streets and streetscapes, including but not limited to improvements and upgrades to E. Broadway Avenue,N. Main Street, E. 2nd Street, and E. 3rd Street and related pedestrian facilities, curb and gutter, intersection and rail crossing improvements, and traffic signals; b. The engineering, design, installation, construction, and/or reconstruction of storm water management infrastructure to support compliance with federal, state, and local regulations for storm water discharge and to support private development; C. The engineering, design, installation, construction, and/or reconstruction of utilities (within and outside of the Project Area) including but not limited to improvements and upgrades to the water distribution system, water capacity improvements,water storage upgrades, sewer system improvements and upgrades, gravity interceptor, and improvements, and upgrades to power, gas, fiber optics, communications and other such facilities. Construction of utilities outside of the Project Area are directly related to the growth and development within the Project Area, but cannot be sited within the Project Area; 9 d. Removal, burying, or relocation of overhead utilities; removal or relocation of underground utilities; extension of electrical distribution lines and transformers; improvement of irrigation and drainage ditches and laterals; undergrounding or piping of laterals; addition of fiber optic lines or other communication systems; public parking facilities, and other public improvements, including but not limited to, fire protection systems, roadways, curbs, gutters, and streetscapes, which for purposes of this Plan, the term streetscapes includes sidewalks, lighting, landscaping, benches, signage, bike racks, public art, and similar amenities between the curb and right-of-way line; and other public improvements, including public open spaces that may be deemed appropriate by the Board; e. The engineering, design, installation, and/or construction of a community/recreation facility, and related public improvements; f-. The engineering, design, installation, and/or construction of a public parking structure or structures and/or public surface parking lot and related public improvements; g. The provision for participation by property owners and developers within the Project Area to achieve the objectives of this Plan; h. The management of any property acquired by and under the ownership and control of the Agency; i. The provision for relocation assistance to displaced Project Area occupants and/or businesses as a result of any Agency activity, as may be required by law; j. The development or redevelopment of land by private enterprise or public agencies for uses in accordance with this Plan; k. The acquisition of real property for public right-of-way improvements, pedestrian facilities,utility undergrounding,public parking facilities, useable public space, pathways, and streetscape improvements to create development opportunities consistent with the Plan, including but not limited to fiiture disposition to qualified developers and for qualified developments, including economic development, and/or other public entities; 1. The demolition or removal of certain buildings and/or improvements for public rights-of-way, pedestrian facilities,utility undergrounding,public parking facilities, useable public space,pathways and streetscape improvements to encourage and enhance transportation and mobility options, decrease underutilized parcels, to eliminate unhealthful, unsanitary, or unsafe conditions, eliminate obsolete or other uses detrimental to the public welfare or otherwise to remove or to prevent the spread of deteriorating or deteriorated conditions and to promote economic growth and development or redevelopment; 10 m. The disposition of real property through a competitive process in accordance with this Plan, Idaho law, including Idaho Code § 50-2011, and any disposition policies adopted by the Agency; n. The rehabilitation and adaptive reuse and repurposing of existing structures and improvements; o. The preparation and assembly of adequate sites for the development and construction of facilities for mixed-use, residential, commercial,retail areas, transit facilities, educational facilities and community and recreation facilities; P. To the extent allowed by law, lend or invest federal or state funds to facilitate redevelopment; q. The environmental assessment and remediation of brownfield sites, or sites where environmental conditions detrimental to redevelopment exist; r. In collaboration with property owners and other stakeholders, working with the City to amend zoning regulations (if necessary) and standards and guidelines for the design of streetscape, plazas,pedestrian corridors, parks, open space and other like public spaces applicable to the Project Area as needed to support implementation of this Plan; S. Agency and/or owner-developer construction,participation in the constriction and/or management of public parking facilities that support a desired level and farm of development to enhance the vitality of the Project Area; t. The construction and financial support of cultural facilities and the enhancement and construction of parks, open spaces, and public recreational facilities; U. The provision of financial and other assistance to encourage and attract business enterprise including but not limited to start-ups and microbusiness, unique cultural businesses, mid-sized companies, and large-scale corporations; V. In conjunction with the City, the establishment and implementation of performance criteria to assure high site design standards and environmental quality and other design elements which provide unity and integrity to the entire Project Area, including commitment of funds for planning studies, achieving high standards of development, and leveraging such development to achieve public objectives and efficient use of scarce resources. W. Other related improvements to those set forth above as further set forth in Attachment S. 11 In the accomplishment of these purposes and activities and in the implementation and furtherance of this Plan, the Agency is authorized to use all the powers provided in this Plan and as permitted by the Law and the Act. 302 Urban Renewal Plan Objectives Urban renewal activity is necessary in the Project Area to combat problems of physical deterioration or deteriorating conditions. As set forth in greater detail in Section 103, the Project Area has a history of stagnant growth and development compared to the greater downtown area of the City based on deteriorated or deteriorating conditions that have arrested or impaired growth in the Project Area primarily attributed to: underdeveloped properties; inadequate pedestrian and bicycle connectivity and mobility; the presence of a substantial number of deteriorating structures; deterioration of site; age and obsolescence; a predominance of defective or inadequate street layout; faulty lot layout in relation to size, adequacy, accessibility or use-fulness; unsanitary or unsafe conditions; and defective or very unusual conditions of title. The Plan for the Project Area is a proposal to work in partnership with public and private entities to improve, develop, and grow the economy within the Project Area by the implementation of a strategy and program set forth in Section 301. The provisions of this Plan are applicable to all public and private property in the Project Area. The provisions of the Plan shall be interpreted and applied as objectives and goals, recognizing the need for flexibility in interpretation and implementation, while at the same time not in any way abdicating the rights and privileges of the property owners which are vested in the present and future zoning classifications of the properties. All development under an owner participation agreement shall conform to those standards specified in Section 303 of this Plan. It is recognized that the Ada County Highway District has exclusive jurisdiction over all public street rights-of-way within the Project Area, except for state highways. Nothing in this Plan shall be construed to alter the powers of the Ada County Highway District pursuant to Title 40, Idaho Code. This Plan must be practical in order to succeed. Particular attention has been paid to how it can be implemented, given the changing nature of market conditions. Transforming the Project Area into a vital, thriving part of the community requires a proactive strategy. The following represents the key elements of that effort: a. Initiate simultaneous projects designed to revitalize the Project Area. From street and utility improvements to significant new public or private development, the Agency plays a key role in creating the necessary momentum to get and keep things going. b. Develop new mixed-use residential, commercial, and retail areas including the development of a community and recreation facility, as well as encourage other economic development opportunities. 12 C. Secure and improve certain public open space in critical areas. d. Initiate projects designed to encourage affordable and workforce housing options and increased transportation and mobility options. Without direct public intervention, the Project Area has and could conceivably remain unchanged and in a deteriorated and/or deteriorating condition for the next twenty (20)years. The Plan creates the necessary flexible framework for the Project Area to support the City's economic development while complying with the "specificity" requirement set forth in Idaho Code § 50-2905. Land use in the Project Area may be modified to the extent that the existing brownftelds, and underutilized,underdeveloped, deteriorated, deteriorating and vacant land, and land now devoted to scattered inconsistent uses may be converted to a inixed-use, commercial,retail, and residential area, including a community recreation facility,public open spaces, and a public parking structure and/or a public surface parking lot. In implementing the activities described in this Plan, the Agency shall give due consideration to the provision of adequate park, open space and community and recreational areas and facilities that may be desirable for neighborhood improvement, with special consideration for the health, safety, and welfare of residents in the general vicinity of the Project Area covered by the Plan, recognizing the mixed-use nature of the Project Area. 303 Participation Opportunities and Participation Agreements The Agency may enter into various development participation agreements with any existing or future owners of property in the Project Area, in the event such a property owner seeks and/or receives assistance from the Agency in the development and/or redevelopment of the property. The teen "participation agreement" is intended to include all participation agreements with a property owner, including reimbursement agreements, grant agreements, disposition and development agreements or owner participation agreements. In that event, the Agency may allow for an existing or fiiture owner of property to remove the property and/or structure fi-om future Agency acquisition subject to entering into an owner participation agreement. It is anticipated the Agency will enter into an owner participation agreement with the current owner/developer of property within the Project Area and/or its related entities. The Agency may also enter into owner participation agreements with other future owners and developers within the Project Area throughout the duration of this Plan in order to implement the infrastructure improvements set forth in this Plan. Each structure and building in the Project Area to be rehabilitated or to be constructed as a condition of the owner participation agreement between the Agency and the owner pursuant to this Plan will be considered to be satisfactorily rehabilitated and constructed pursuant to the requirements of the Law and Act, if the rehabilitated or new structure meets the standards set forth in an executed owner participation agreement and complies with the applicable provisions of this Plan, local codes and ordinances and the Idaho Code. 13 All owner parligWationggreernents will address development timing,justification and eligibility of project costs, and achievement of the objectives of the PIan. The Agency shall retain its discretion in the funding level of its participation. Obligations under owner participation agreements shall terminate no later than the termination date of this Plan— December 31, 2040. The Agency shall retain its discretion to negotiate an earlier date to accomplish all obligations under any owner participation agreement. In all owner participation agreements, participants who retain real property shall be required to join in the recordation of such documents as may be necessary to make the provisions of this Plan applicable to their properties. Whether or not a participant enters into an owner participation agreement with the Agency, the provisions of this Plan are applicable to all public and private property in the Project Area. In the event a participant under an owner participation agreement fails or refuses to rehabilitate, develop, use, and maintain its real property pursuant to this Plan and an owner participation agreement, the real property or any interest therein may be acquired by the Agency in accordance with Section 305.1 of this Plan and sold or leased for rehabilitation or development in accordance with this Plan. Owner participation agreements may be used to implement the following objectives: Encouraging property owners to revitalize and/or remediate deteriorated areas or deteriorating areas of their parcels to accelerate development in the Project Area. e Subject to the limitations of the Law and the Act, providing incentives to property owners to encourage utilization and expansion of existing permitted uses during the transition period to prevent a decline in the employment base and a proliferation of vacant and deteriorated parcels in the Project Area during the extended development and/or redevelopment of the Project Area. • To accommodate improvements and expansions allowed by City regulations and generally consistent with this Plan for the Project Area. • Subject to the limitations of the Law and Act,providing incentives to improve nonconforming properties so they implement the design guidelines contained in this Plan to the extent possible and to encourage an orderly transition from nonconforming to conforming uses through the term of the Plan. • Provide for advance funding by the developer/owner participant of those certain public improvements related to or needed for the private development and related to the construction and certain public improvements related to the community/recreation facility,public open spaces, and public parking structures and/or surface lots. In that event, the Agency will agree as set out in the owner participation agreement to reimburse a portion of, or all of, the costs of public 14 improvements identified in the participation agreement from the revenue allocation generated by the private development. 304 Cooperation with Public Bodies Certain public bodies are authorized by state law to aid and cooperate,with or without consideration, in the planning, undertaking, construction, or operation of this Project. The Agency shall seek the aid and cooperation of such public bodies and shall attempt to coordinate this Plan with the activities of such public bodies in order to accomplish the purposes of redevelopment and the highest public good. The Agency, by law, is not authorized to acquire real property owned by public bodies without the consent of such public bodies. The Agency will seek the cooperation of all public bodies which own or intend to acquire property in the Project Area. All plans for development of property in the Project Area by a public body shall be subject to Agency approval, in the event the Agency is providing any financial assistance. Subject to applicable authority, the Agency may impose on all public bodies the planning and design controls contained in this Plan to ensure that present uses and any future development by public bodies will conform to the requirements of this Plan; provided, however, the Ada County Highway District has exclusive jurisdiction over Ada County Highway District streets. The Agency is authorized to financially (and otherwise) assist any public entity in the cost of public land, buildings, facilities, structures, or other improvements of the Project Area as allowed by the Law and Act. The Agency intends to cooperate to the extent allowable with the City and ACHD, as the case may be, for the engineering, design, installation, construction, and/or reconstruction of public infi-astructure improvements, including, but not limited to water, sewer, storm drainage, electrical, natural gas, telecommunication, or other similar systems and lines, streets,roads, curbs, gutters, sidewalks, walkways, public parking facilities and a community/recreation facility. The Agency shall also cooperate with the City and ACHD on various relocation, screening, or underground projects and the providing of fiber optic capability_ To the extent any public entity, including the City, has funded certain improvements such as roadway improvements,pedestrian facilities, water and sewer facilities or storm drainage improvements, the Agency may reimburse those entities for those expenses. The Agency also intends to cooperate and seek available assistance from state, federal and other sources for economic development. In the event the Agency is participating in the public development by way of financial incentive or otherwise, the public body shall enter into an agreement with the Agency and then shall be bound by the Plan and other land use elements and shall take into consideration those standards specified in Section 303 of this Plan. This Plan does not financially bind or obligate the Agency to any project or property acquisition; rather, for purposes of determining the economic feasibility of the Plan certain 15 projects and expenditures have been estimated and included in the analysis. Agency revenue and the ability to fund reimbursement of eligible Project Costs is more specifically detailed in any owner participation agreement and in the annual budget adopted by the Agency Board. 305 Property Acquisition 305.1 Real Property Only as specifically authorized herein, the Agency may acquire, through the voluntary measures described below, but is not required to acquire, any real property located in the Project Area where it is determined that the property is needed for construction of public improvements, required to eliminate or mitigate the deteriorated or deteriorating conditions, to facilitate economic development, including acquisition of real property intended for disposition to qualified developers through a competitive process, and as otherwise allowed by law. The acquisition shall be by any means authorized by law, including, but not limited to, the Law, the Act, and the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, but shall not include the right to invoke eminent domain authority except as authorized by Idaho law and provided herein. The Agency is authorized to acquire either the entire fee or any other interest in real property less than a fee, including structures and fixtures upon the real property, without acquiring the land upon which those structures and fixtures are located, The Agency intends to acquire any real property through voluntary or consensual gift, devise, exchange, or purchase. Such acquisition of property may be for the development of the public improvements identified in this Plan. Acquisition of property may be for the assembly of properties for redevelopment to achieve Plan goals including public benefits. Such properties may include properties owned by private parties or public entities. This Plan anticipates the Agency's use of its resources for property acquisition. In the event the Agency identifies certain property which should be acquired to develop certain public improvements intended to be constructed under the provisions of this Plan, the Agency shall coordinate such property acquisition with any other public entity (e.g., without limitation, the City, the state of Idaho, or any of its authorized agencies), including the assistance of Agency fiends to acquire said property either through a voluntary acquisition or the invocation of eminent domain authority as limited by Idaho Code § 7-701A. The Agency is authorized by this Plan and Idaho Code §§ 50-2010 and 50-2018(12) to acquire the properties identified in Attachment 3 hereto for the purposes set forth in this Plan. The Agency has identified its intent to acquire and/or participate in the development of certain public improvements, including, but not limited to streets, streetscapes, lighting,water and sewer improvements, improvements to the lateral, drainage facilities, intersection improvements, including the installation of traffic signals and/or rail crossings, parking, parks and open space, multi-use paths and trails, power and gas improvements and/or relocations, and other related public infi•astuucture improvements, such as a community recreation facility and public stnuctured parking facility and/or surface lots. Further, the Agency may acquire real property to 16 facilitate commercial development by assembling and disposing of developable parcels. The Agency's property acquisition will result in remediating deteriorating conditions in the Project Area by facilitating the development of a mixed-use, office, residential, commercial, and retail area, as well as a community recreation facility and public structured parking and/or surface lots. The public improvements are intended to be dedicated to the City upon completion. The Agency reserves the right to determine which properties identified, if any, should be acquired. It is in the public interest and is necessary, in order to eliminate the conditions requiring development and/or redevelopment and in order to execute this Plan, for the power of eminent domain to be employed by the Agency to acquire real property in the Project Area for the public improvements identified in this Plan,which cannot be acquired by gift, devise, exchange, purchase, or any other lawful method, subject to the limitations set forth in Idaho Code § 7- 701A. Under the provisions of the Act, the urban renewal plan "shall be sufficiently complete to indicate such land acquisition, demolition, and removal of structures, redevelopment, improvements, and rehabilitation as may be proposed to be carried out in the urban renewal area." Idaho Code § 50-2018(12). The Agency has generally described those properties by use as set out in Attachment 3 for acquisition for the construction of public improvements. The Agency may also acquire property for the purpose of developing streetscape and public utilities. The Agency reserves the right to determine which properties identified, if any, should be acquired. 305.2 Personal Property Generally, personal property shall not be acquired. However, where necessary in the execution of this PIan, the Agency is authorized to acquire personal property in the Project Area by any lawful means, including eminent domain as limited by Idaho Code § 7-701A for the purpose of developing the public improvements described in section 305.1. 306 Property Management During the time real property, if any, in the Project Area is owned by the Agency, such property shall be under the management and control of the Agency, Such property may be rented or leased by the Agency pending its disposition for development and/or redevelopment, and such rental or lease shall be pursuant to such policies as the Agency may adopt. 307 Relocation of Persons (Including Individuals and Families),Business Concerns, and Others Displaced by the Project If the Agency receives federal fiends for real estate acquisition and relocation, the Agency shall comply with 24 C.F.R. Part 42, implementing the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended. The Agency reserves the right to extend benefits for relocation to those not otherwise entitled to relocation benefits as a matter of state law under the Act or the Law. The Agency 17 may determine to use as a reference the relocation benefits and guidelines promulgated by the federal government, the state government, or local government, including the State Department of Transportation and the Ada County Highway District. The intent of this section is to allow the Agency sufficient flexibility to award relocation benefits on some rational basis, or by payment of some limp-sum per case basis. The Agency nnay also consider the analysis of replacement value for the compensation awarded to either owner occupants or businesses displaced by the Agency to achieve the objectives of this Plan. The Agency may adopt relocation guidelines which would define the extent of relocation assistance in non-federally- assisted projects and which relocation assistance to the greatest extent feasible would be uniform. The Agency shall also coordinate with the various local, state, or federal agencies concerning relocation assistance as may be warranted. In the event the Agency's activities result in displacement of families, the Agency shall comply with, at a minimum, the standards set forth in the Law. The Agency shall also cornply with all applicable state laws concerning relocation benefits and shall aIso coordinate with the various local, state, or federal agencies concerning relocation assistance. 308 Demolition, Clearance and Site Preparation The Agency is authorized (but not required) to demolish and clear buildings, structures, and other improvements from any real property in the Project Area as necessary to carry out the purposes of this Plan. Farther, the Agency is authorized (but not required) to prepare, or cause to be prepared, as building sites any real property in the Project Area owned by the Agency including site preparation and/or environmental remediatiou. 309 Property Disposition and Development 309.1. Disposition by the Agency For the purposes of this Plan, the Agency is authorized to sell, lease, lease/purchase, exchange, subdivide, transfer, assign, pledge, encumber by mortgage or deed of trust, or otherwise dispose of any interest in real property under the reuse provisions set forth in Idaho law, including Idaho Code § 50-2011 and pursuant to any disposition policies adopted by the Agency. To the extent permitted by law, the Agency is authorized to dispose of real property by negotiated lease, sale, or transfer without public bidding. Real property acquired by the Agency may be conveyed by the Agency and, where beneficial to the Project Area, without charge to any public body as allowed by law. All real property acquired by the Agency in the Project Area shall be sold or leased to public or private persons or entities for development for the uses permitted in this Plan. Air rights and subterranean rights may be disposed of for any permitted use within the Project Area boundaries. 18 309.2 Disposition and Development Agreements To provide adequate safeguards to ensure that the provisions of this Plan will be carried out and to prevent the recurrence of deteriorating conditions, all real property sold, leased, or conveyed by the Agency is subject to the provisions of this Plan. The Agency shall reserve such powers and controls in the disposition and development documents as the Agency deems may be necessary to prevent transfer, retention, or use of property for speculative purposes and to ensure that development is carried out pursuant to this Plan. Leases, lease/purchases, deeds, contracts, agreements, and declarations of restrictions of the Agency may contain restrictions, covenants, covenants running with the land, rights of reverter, conditions subsequent,'equitable servitudes, or any other provisions necessary to carry out this Plan. Where appropriate, as determined by the Agency, such documents, or portions thereof, shall be recorded in the office of the Recorder of Ada County, Idaho. All property in the Project Area is hereby subject to the restriction that there shall be no discrimination or segregation based upon race, color, creed, religion, sex, age, national origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, disability/handicap, tenure, or enjoyment of property in the Project Area. All property sold, leased, conveyed, or subject to a disposition and development agreement shall be expressly subject by appropriate documents to the restriction that all deeds, leases, or contracts for the sale, lease, sublease, or other transfer of land in the Project Area shall contain such nondiscrimination and nonsegregation clauses as required by law. As required by law or as determined in the Agency's discretion to be in the best interest of the Agency and the public, the following requirements and obligations shall be included in the disposition and development agreement. That the developers, their successors, and assigns agree: a. That a detailed scope and schedule for the proposed development shall be submitted to and agreed upon by the Agency. b. That the purchase or lease of the land and/or subterranean rights and/or air rights is for the purpose of redevelopment and not for speculation. C. That the building of improvements will be commenced and completed as jointly scheduled and determined by the Agency and the developer(s). d. That the site and construction plans will be submitted to the Agency for review as to conformity with the provisions and purposes of this Plan. 19 e. All new construction shall have a minimum estimated life as may be reasonable for the proposed development. f. That rehabilitation of any existing structure must assure that the structure is safe and sound in all physical respects and be refurbished and altered to bring the property to an upgraded marketable condition which will continue throughout an estimated useful life as may be reasonable for the proposed development. g That the Agency receives adequate assurance acceptable to the Agency to ensure performance under the contract for sale. h. All such buildings or portions of the buildings which are to remain within the Project Area shall be reconstructed in conformity with all applicable codes and ordinances of the City. i. All disposition and development documents shall be governed by the provisions of Section 408 of this Plan. The Agency also reserves the right to determine the extent of its participation based upon the achievements of the objectives of this Plan. Obligations under any disposition and development agreement and deed covenants, except for covenants which run with the land, beyond the termination date of this Plan, shall terminate no later than December 31, 2040. The Agency shall retain its discretion to negotiate an earlier date to accomplish all obligations under any disposition and development agreement. 309.3. Development by the Agency To the extent now or hereafter permitted by law, the Agency is authorized to pay for, develop, or construct public improvements within the Project Area for itself or for any public body or entity, which public improvements are or would be of benefit to the Project Area. Specifically, the Agency may pay for, install, or construct the public improvements authorized under Idaho Code Section 50-2007, 50-2018(10) and (13), and 50-2903(9), (13), and (14), and as otherwise identified in Attachment 5 and may acquire or pay for the land required therefore. Any public facility ultimately owned by the Agency shall be operated and managed in such a manner to preserve the public purpose nature of the facility. Any lease agreement with a private entity or management contract agreement shall include all necessary provisions sufficient to protect the public interest and public purpose. The Agency may enter into contracts, leases, and agreements with the City or other public body or private entity pursuant to this section, and the obligation of the Agency under such contract, lease, or agreement shall constitute an indebtedness of the Agency as described in Idaho Code § 50-2909 which may be made payable out of the taxes levied in the Project Area and allocated to the Agency under Idaho Code § 50-2908(2)(b) and Section 504 to this Plan or out of any other available funds. 20 310 Development Plans All development plans (whether public or private) prepared,pursuant to disposition and development agreement or owner participation agreement, shall be submitted to the Agency Board for approval and review. All development in the Project Area must conform to those standards specified in Section 408 and all applicable City ordinances. 311 Personal Property Disposition For the purposes of this Plan, the Agency is authorized to lease, sell, exchange, transfer, assign, pledge, encumber, or otherwise dispose of personal property which is acquired by the Agency. 312 Participation with Others Under the Law, the Agency has the authority to lend or invest finds obtained fi-om the federal government for the purposes of the Law if allowable under federal laws or regulations. The federal funds that may be available to the Agency are governed by regulations promulgated by the Department of Housing and Urban Development for the Community Development Block Grant Program ("CDBG"), the Economic Development Administration, the Small Business Administration, or other federal agencies. In order to enhance such grants, the Agency's use of revenue allocation funds is critical. Under those regulations the Agency may participate with the private sector in the development and financing of those private projects that will attain certain federal objectives. The Agency may, therefore, use the federal fiends for the provision of assistance to private for-profit business, including, but not limited to, grants, loans, loan guarantees, interest supplements, technical assistance, and other forms to support, for any other activity necessary or appropriate to carry out an economic development project:. As allowed by law, the Agency may also use funds from any other sources or participate with the private or public sector with regard to any programs administered by the Idaho Department of Commerce for any purpose set forth under the Law or Act. The Agency may enter into contracts, leases, and agreements with the City, or other public body or private entity,pursuant to this section, and the obligation of the Agency under such contract, lease, or agreement shall constitute an indebtedness of the Agency as described in Idaho Code § 50-2909 which may be made payable out of the taxes levied in the Project Area and allocated to the Agency under Idaho Code § 50-2908(2)(b) and Section 504 to this Plan or out of any other available funds. 21 313 Conforming Owners The Agency may, at the Agency's sole and absolute discretion, determine that certain real property within the Project Area presently meets the requirements of this Plan. 314 Arts and Cultural Funding The Agency may dedicate resources for the construction or purchase of facilities for the placement and maintenance of public art and arts projects may be selected and provided by the Agency, separately from any construction costs of developers. Though not required, the Agency Board generally makes selections of the works of art with assistance from the City and the Meridian Arts Commission and may include review and approval of the City Council. When possible, any Agency arts funding will be used to leverage additional contributions from developers, other private sources, and public or quasi-public entitles for purposes of including public art within the streetscape projects identified in this Plan. 400 USES PERMITTED IN THE PROJECT AREA 401 Designated Land Uses The Agency intends to rely upon the overall land use designations and zoning classifications of the City, as may be amended, and as tentatively depicted on Attachment 4 and as set forth in the City's Comprehensive Plan and within the Meridian zoning ordinance and requirements, including the future land use map and zoning classifications, as may be amended. For the most part, the Project Area will include a mixed-use commercial, retail, office and residential project, as well as, a community recreation facility, public open spaces, and public structured parking and/or surface lots. Such improvements are consistent with the OT zoning designation, Provided, however, nothing herein within this Plan shall be deemed to be granting any particular right to zoning classification or use. 402 Public Rights-of-Way The Project Area contains existing maintained public rights-of-way as set forth on Attachment 1, including but not limited to E. Broadway Avenue, E. Idaho Avenue, E. 2"d Avenue and E. Yd Avenue. Additional public streets, alleys, and easements may be created in the Project Area as needed for development. Existing streets, alleys, and easements may be improved, abandoned, closed, vacated, expanded or modified as necessary for proper development of the Project Area, in accordance with any applicable policies and standards of the Idaho Transportation Department, the City or Ada County Highway District regarding changes to dedicated rights-of-way. Any development, maintenance and future changes to the existing interior or exterior street layout shall be in accordance with the objectives of this Plan, and the City, the Ada County Highway District, or the Idaho Department of Transportation's design standards as may be 22 applicable shall be effectuated in the manner prescribed by State and local law; and shall be guided by the following criteria: a. A balancing of the needs of proposed and potential new developments for adequate pedestrian and vehicular access (including cars,trucks, bicycles, etc.), vehicular parking, and delivery loading docks with the similar needs of any existing developments permitted to remain. Such balancing shall take into consideration the rights of existing owners and tenants under the rules for owner and tenant participation adopted by the Agency for the Project and any participation agreements executed thereunder; b. The requirements imposed by such factors as topography, traffic safety, and aesthetics; and C. The potential need to serve not only the Project Area and new or existing developments, but to also serve areas outside the Project Area by providing convenient and efficient vehicular access and movement. The public rights-of-way may be used for vehicular and/or pedestrian traffic, as well as for public improvements, public and private utilities, and activities typically found in public rights-of-way. 403 Other Public, Semi-Public, Institutional, and Nonprofit Uses The Agency is also authorized to permit the maintenance, establishment, or enlargement of public, semi-public, institutional, or nonprofit uses, including park and recreational facilities; educational, fraternal, employee; philanthropic and charitable institutions; utilities; governmental facilities; railroad rights-of-way and equipment; and facilities of other similar associations or organizations. All such uses shall, to the extent possible, conform.to the provisions of this Plan applicable to the uses in the specific area involved. The Agency may impose such other reasonable requirements and/or restrictions as may be necessary to protect the development and use of the Project Area, 404 Interim Uses Pending the ultimate development of land by developers and participants, the Agency is authorized to use or allow the use of any land in the Project Area for interim uses that are not in conformity with the uses permitted in this Plan. However, any interim use must comply with applicable City Code. 405 Development in the Project Area Subject to the Plan All real property in the Project Area, under the provisions of either a disposition and development agreement or an owner participation agreement, is made subject to the controls and requirements of this Plan, No such real property shall be developed, rehabilitated, or otherwise 23 changed after the date of the adoption of this Plan, except in conformance with the provisions of this Plan. 406 Construction Shall Comply with Applicable Federal, State, and Local Laws and Ordinances and Agency Development Standards All construction in the Project Area shall comply with all applicable state laws, the Meridian City Code, as may be amended from time to time, and any applicable City Council ordinances pending codification, including but not limited to, regulations concerning the type, size, density, and height of buildings; open space, landscaping, light, air, and privacy; the undergrounding of utilities; limitation or prohibition of development that is incompatible with the surrounding area by reason of appearance, traffic, smoke, glare, noise, odor, or similar factors; parcel subdivision; off-street loading and off-street parking requirements. In addition to the Meridian City Code, ordinances, or other requirements governing development in the Project Area, additional specific perfor7rnance and development standards may be adopted by the Agency to control and direct redevelopment activities in the Project Area in the event of a disposition and development agreement or owner participation agreement. 407 Minor Variations Under exceptional circumstances, the Agency, in its discretion, is authorized to allow a variation from the limits,restrictions, and controls established by this Plan. In order to allow such variation, the Agency must determine that the variation is not contrary to the objectives of this Plan, is not materially detrimental to the public interest and is not contrary to Idaho law. No variation shall be granted which permits other than a minor departure from the provisions of this Plan. In allowing any such variation, the Agency shall impose such conditions as are necessary to protect the public peace, health, safety, or welfare and to assure compliance with the purposes of the Plan. Any variation allowed by the Agency hereunder shall not supersede any other approval required under City codes and ordinances and shall not be considered a modification to the Plan. 408 Design for Development under a Disposition and Development Agreement or Owner Participation Agreement Within the limits,restrictions, and controls established in this Plan, the Agency is authorized to incorporate heights of buildings, density, land coverage, setback requirements, design criteria, traffic circulation, traffic access, and other development and design controls necessary for proper development of both private and public areas within the Project Area as conditions of approval in applicable Agency agreements, including but not limited to disposition and development agreements and owner participation agreements. Any development must also comply with the City's zoning ordinance regarding heights, setbacks, density and other like standards. 24 In the case of property which is the subject of a disposition and development agreement or an owner participation agreement with the Agency, no new improvement shall be constructed, and no existing improvement shall be substantially modified, altered, repaired, or rehabilitated, except in accordance with this Plan. Under those agreements the architectural, landscape, and site plans shall be submitted to the Agency and approved in writing by the Agency. One of the objectives of this Plan is to create an attractive and pleasant environment in the Project Area. Therefore, such plans shall give consideration to good design, open space, and other amenities to enhance the aesthetic quality of the Project Area. The Agency shall find that any approved plans do comply with this Plan. The Agency reserves the right to impose such design standards on an ad hoc, case by case basis through the approval process of the owner participation agreement or disposition and development agreement. Any change to such approved design must be consented to by the Agency and such consent may be conditioned upon reduction of Agency's financial participation towards the Project. In the event the Agency adopts design standards or controls related to receipt of assistance from the Agency, those provisions will thereafter apply to each site or portion thereof in the Project Area. Those controls and standards will be implemented through the provisions of any disposition and development agreement or owner participation agreement. These controls arc in addition to any standards and provisions of any applicable City building or zoning ordinances; provided, however, each and every development shall comply with all applicable City zoning and building ordinance. 409 Nonconforming Uses This Section applies to property owners seeking assistance fiom the Agency regarding their property. The Agency may allow an existing use to remain in an existing building and site usage in good condition,which use does not conform. to the provisions of this Plan, provided that such use is generally compatible with existing and proposed developments and uses in the Project Area. The owner of such a property must be willing to enter into an owner participation agreement and agree to the imposition of such reasonable restrictions as may be necessary to protect the development and use of the Project Area. The Agency may authorize additions, alterations,repairs, or other improvements in the Project Area for uses which do not conform to the provisions of this Plan where such improvements are within a portion of the Project Area where, in the determination of the Agency, such improvements would be compatible with surrounding Project uses and development. All nonconfonnimrg uses shall also comply with the City codes and ordinances. 25 500 METHODS OF FINANCING THE PROJECT 501 General Description of the Proposed Financing Methods The Agency is authorized to finance this Project with revenue allocation fiends, financial assistance from the City (loans, grants, other financial assistance), state of Idaho, federal government or other public entities, interest income, developer advanced funds, donations, loans from private financial institutions (bonds, notes, line of credit), the lease or sale of Agency- owned property,public parking revenue, or any other available source, public or private, including assistance from any taxing district or any public entity. The Agency is also authorized to obtain advances, lines of credit, borrow funds, and create indebtedness in carrying out this Plan. The Agency may also consider an inter-fund transfer from other urban renewal project areas. The principal and interest on such advances, fiends, and indebtedness may be paid from any funds available to the Agency. The City, as it is able, may also supply additional assistance through City loans and grants for various public facilities. As allowed by law and subject to restrictions as are unposed by law, the Agency is authorized to issue notes or bonds from time to time, if it deems appropriate to do so, in order to finance all or any part of the Project. Neither the members of the Agency nor any persons executing the bonds are liable personally on the bonds by reason of their issuance. 502 Revenue Allocation Financing Provisions The Agency hereby adopts revenue allocation financing provisions as authorized by the Act, effective retroactively to January 1, 2020. These revenue allocation provisions shall apply to all taxing districts which are located in or overlap the Revenue Allocation Area shown and described on Attachments 1 and 2 to this Plan. The Agency shall take all actions necessary or convenient to implement these revenue allocation financing provisions. The Agency specifically finds that the equalized assessed valuation of property within the Revenue Allocation Area is likely to increase as a result of the initiation of the Project. The Agency, acting by one or more resolutions adopted by its Board, is hereby authorized to apply all or any portion of the revenues allocated to the Agency pursuant to the Act to pay as costs are incurred (pay-as-you-go) or to pledge all or any portion of such revenues to the repayment of any moneys advance-funded by developers or owners, borrowed, indebtedness incurred, or notes or bonds issued by the Agency to finance or to refinance the Project Costs (as defined in Idaho Code § 50-2903(14)) of one or more urban renewal projects. The Agency may consider a note or line of credit issued by a bank or lending institution premised upon revenue allocation funds generated by a substantial private development contemplated by the Study as defined in section 502.1, which would allow the Agency to more quickly Rind the public improvements contemplated by this Plan. Likewise, a developer/owner advanced funding could achieve the same purpose. 26 Upon enactment of a City Council ordinance finally adopting these revenue allocation financing provisions and defining the Revenue Allocation Area described herein as part of the Plan, there shall hereby be created a special fund of the Agency into which the County Treasurer shall deposit allocated revenues as provided in Idaho Code § 50-2908. The Agency shall use such funds solely in accordance with Idaho Code § 50-2909 and solely for the purpose of providing funds to pay the Project Costs, including any incidental costs, of such urban renewal projects as the Agency may determine by resolution or resolutions of its Board. A statement listing proposed public improvements and facilities, a schedule of improvements, an economic feasibility study, estimated project costs, fiscal impact upon other taxing districts, and methods of financing project costs required by Idaho Code § 50-2905 is included in this Plan and in Attachment 5 to this Plan. This statement necessarily incorporates estimates and projections based on the Agency's and the consultants' present knowledge and expectations. The Agency is hereby authorized to adjust the presently anticipated urban renewal projects and use of revenue allocation financing of the related Project Costs if the Board deems such adjustment necessary or convenient to effectuate the general objectives of the Plan in order to account for revenue inconsistencies, market adjustments, fiiture priorities, and unknown future costs. Agency revenue and the ability to fund reimbursement of eligible Project Costs is more specifically detailed in the annual budget. The Agency may appropriate funds consisting of revenue allocation proceeds on an annual basis without the issuance of notes or bonds. The Agency may also obtain advances or loans frorn the City or Agency, or private entity and financial institutions in order to immediately commence construction of certain of the public improvements. Developer advanced funding of public improvements could also achieve the same purpose. The revenue allocation proceeds are hereby irrevocably pledged for the payment of the principal and interest on the advance of monies or making of loans or the incurring of any indebtedness such as bonds, notes, and other obligations (whether funded, refunded, assumed, or otherwise) by the Agency to finance or refinance the Project in whole or in part, including reimbursement to developers for the cost of eligible public improvements. Revenues will continue to be allocated to the Agency until termination of the revenue allocation area as set forth in Section 800, Attachment 5 incorporates estimates and projections based on the Agency's and the consultants' present knowledge and expectations concerning the length of time to complete the improvements and estimated future revenues. The activity may take longer depending on the significance and timeliness of development. Alternatively, the activity may be completed earlier if revenue allocation proceeds are greater or the Agency obtains additional funds. 502.1 Economic Feasibility Study Attachment 5 constitutes the Economic Feasibility Study ("Study") for the urban renewal area prepared by Kushlan I Associates and SMR Development, LLC. The Study constitutes the 27 financial analysis required by the Act and is based upon existing information from property owners, developers, the Agency, City and others. 502.2 Assumptions and Conditions/Economic Feasibility Statement The information contained in Attachment 5 assumes certain completed and projected actions. All debt is projected to be repaid no later than the duration period of the Plan. The total amount of bonded indebtedness, developer reimbursement and all other loans or indebtedness, and the amount of revenue generated by revenue allocation are dependent upon the extent and timing of private development. Should all of the proposed development take place as projected, the project indebtedness could be extinguished earlier, dependent upon the bond sale documents or other legal obligations. Should private development take longer to materialize, or should the private development be substantially less than projected, then the amount of revenue generated will be substantially reduced and debt may continue for its full term. The Plan and the Plan Attachments incorporate estimates and projections based on the Agency's and consultants' present knowledge and expectations. The Plan proposes certain public improvements as set forth in Attachment 5,which will facilitate mixed-use commercial, residential, office and retail development in the Revenue Allocation Area. The assumptions set forth in the Study are based upon the best information available to the Agency and consultants through public sources or discussions with property owners, developers, City staff and others. The information has been analyzed by the Agency and its consultants in order to provide an analysis that meets the requirements set forth under the Law and Act. At the point in time when the Agency may seek a loan from lenders or others, a more detailed and then-current financial pro forma will be presented to those lenders or underwriters for analysis to determine the borrowing capacity of the Agency. As set forth herein, the Agency reserves the right to fund the Project on a"pay as you go" basis. The Agency Board will prioritize the activities set forth in this Plan and determine what funds are available and what activities can,be funded. The Agency will establish those priorities through its mandated annual budgetary process. The list of public improvements, or activities within Attachment 5 are prioritized by way of importance to the Agency, by feasibility based on estimated revenues to be received, amounts funded, and by year of funding. The projected timing of funding is primarily a function of the availability of financial resources and market conditions but is also strategic, considering the timing of private development partnership opportunities and the ability of certain strategic activities to stimulate development at given points in time within the duration of the Plan and Project Area. The assumptions concerning revenue allocation proceeds are based upon certain anticipated development, assessed value increases and assumed levy rates as more specifically set forth in Attachment 5. Further, the financial analysis set forth in Attachment 5 has taken into 28 account and excluded levies that do not flow to the Agency consistent with Idaho Code § 50- 2908. The types of new construction expected in the Project Area are mixed-use, residential, commercial, office and retail projects, and related public improvements, as well as a community recreation facility, public open spaces, and public structured parking facility and/or surface parking lots. The Project Area has potential for a significant increase in residential, commercial, and retail growth due to the location of the Project Area. However, without a method to construct the identified public improvements such as water lines, street infrastructure, and pedestrian amenities, development is unlikely to occur in much of the Project Area. 502.3 Ten Percent Limitation Under the Act, the base assessed valuation for all revenue allocation areas cannot exceed gross/net ten percent (10%) of the current assessed taxable value for the entire City. According to the Ada County Assessor, the assessed taxable value for the City as of January 1, 20191, less homeowner's exemptions is $9,465,760,011.00. Therefore, the 10% limit is $946,576,001.00. The adjusted base assessed value of each of the existing or proposed revenue allocation areas as of January 1, 2019, is as follows: Meridian Revitalization Plan (Downtown District Plan)' $131,252,900 Ten Mile District $12,582,900 Union District $2,163,380 The adjusted base values for the combined revenue allocation areas total $145,998,180, which is less than 10% of the City's 2019 taxable value. 502.4 Financial Limitation The Study identifies several capital improvement projects. Use of any particular financing or funding source for any particular purpose is not assured or identified. Use of the fiinding source shall be conditioned on any limitations set forth in the Law, the Act, by contract, or by other federal regulations. If revenue allocation funds are unavailable, then the Agency will need to use a different funding source for that improvement. The amount of funds available to the Agency from revenue allocation financing is directly related to the assessed value of new improvements within the Revenue Allocation Area. Under the Act, the Agency is allowed the revenue allocation generated from inflationary Due to the timing of the assessment process and creation of this Plan,the 2019 values have been used to establish compliance with the 10%limitation. Using the 2019 values, the total adjusted base value of the existing and proposed revenue allocation areas combined with the value of this Project Area are less than 2%of the total taxable value of the City. Even assuming an increase in values for 2020,the combined adjusted base values of the revenue allocation areas would not exceed 10%of the current assessed taxable value for the entire City. '-Less area deannexed by the First Amendment to the Meridian Revitalization Plan Urban Renewal Project,adopted by City Council Ordinance No. on.tune 2020. 29 increases and new development value. Increases have been assumed based upon the projected value of new development as that development occurs along with possible land reassessment based on a construction start. The Study, with the various estimates and projections, constitutes an economic feasibility study. Costs and revenues are analyzed, and the analysis shows the need for public capital funds during the project. Multiple financing sources including annual revenue allocations, developer contributions, City contributions, interfund loan, property disposition, and other funds are shown. This Study identifies the kind, number, and location of all anticipated public works or improvements, a detailed list of estimated project costs, a description of the methods of financing the estimated project costs, and the time when related costs or monetary obligations are to be incurred. See Idaho Code § 50-2905. Based on these funding sources, the conclusion is that the project is feasible. The Agency reserves the discretion and flexibility to use revenue allocation proceeds in excess of the amounts projected in the Study for the purpose of funding the additional identified projects and improvements. The projections in the Study are based on reasonable assumptions and existing market conditions. However, should the Project Area result in greater than anticipated revenues, the Agency specifically reserves the ability to -fund the additional activities and projects identified in this Plan. Further, the Agency reserves the discretion and flexibility to use other sources of funds unrelated to revenue allocation to assist in the funding of the improvements and activities identified, including but not limited to owner participation agreements and disposition and development agreements. The Agency may also, re-prioritize projects pursuant to market conditions, project timing, funding availability, etc. as more specifically detailed in the annual budget. The proposed timing for the public improvements may very well have to be adjusted depending upon the availability of sorne of the funds and the Agency's ability to finance any portion of the Project. Any adjustment to Project tuning or funding is technical or ministerial in nature and shall not be considered a modification of the Plan pursuant to Idaho Code § 50-2903A. Attachment 5 lists those public improvements the Agency intends to construct through the terra of the Plan. The costs of improvements are estimates only as it is impossible to know with any certainty what the costs of improvements will be in future years. There is general recognition that construction costs fluctuate and are impacted by future unknowns, such as, the cost of materials and laborers. Final costs will be determined by way of construction contract public bidding or by an agreement between the developer/owner and Agency. The listing of public improvements does not commit the City or Agency to any particular level of funding; rather, identification of the activity in the Plan allows the Agency to negotiate the terms of any reimbursement with the developer and/or City, This Plan does not financially bind or obligate the City or Agency to any project or property acquisition; rather, for purposes of determining the economic feasibility of the Plan certain projects and expenditures have been estimated and included in the analysis. Agency revenue and the ability to fund reimbursement of eligible 30 Project Costs is more specifically detailed in any participation agreement and in the annual budget adopted by the Agency Board, The Agency reserves its discretion and flexibility in deciding which improvements are more critical for development, and the Agency intends to coordinate its public improvements with associated development by private developers/owners. The Agency also intends to coordinate its participation in the public improvements with the receipt of certain grants or loans which may require the Agency's participation in some combination with the grant and loan funding. Generally, the Agency expects to develop those improvements identified in Attachment 5 first, in conjunction with private development within the Project Area generating the increment as identified in Attachment 5, The Plan has shown that the equalized valuation of the Revenue Allocation Area as defined in the Plan is likely to increase as a result of the initiation and completion of urban renewal projects pursuant to the Plan. 502.5 Participation with Local Improvement Districts and Business Improvement Districts Under the Idaho Local Improvement ("LID") District Code, Chapter 17, Title 50, Idaho Code, the City has the authority to establish local improvement districts for various public facilities, including, but not limited to, streets, curbs, gutters, sidewalks, storm► drains, landscaping, and other like facilities. To the extent allowed by the Law and the Act, the Agency reserves the authority, but not the obligation, to participate in the firnding of local improvement district facilities. This participation may include either direct funding to reduce the overall cost of the LID or to participate as an assessed entity to finance the LID project. Similarly, to the extent allowed by the Law and the Act, the Agency reserves the authority, but not the obligation, to participate in the funding of the purposes specified under the Business Improvement Districts, Chapter 26, Title 50, Idaho Code. 502.6 Issuance of Debt and Debt Limitation Any debt incurred by the Agency as allowed by the Law and Act shall be secured by revenues identified in the debt resolution or revenue allocation funds as allowed by the Act. All such debt shall be repaid within the duration of this Plan, except as may be authorized by law. 502.7 Impact on Other Taxing Districts and Levy Rate An estimate of the overall impact of the revenue allocation project on each taxing district is shown in the Study through the new development projections set forth in Attachment 5. The assessed value for each property in a revenue allocation area consists of a base value and an increment value. The base value is the assessed value as of January 1 of the year in 31 which a revenue allocation area is approved by a municipality, with periodic adjustments allowed by Idaho law. The increment value is the difference between the adjusted base assessed value and current assessed taxable value in any given year while the property is in a revenue allocation area. Under Idaho Code § 63-802, taxing entities are constrained in establishing levy rates by the amount each budget of each taxing district can increase on an annual basis. Taxing entities submit proposed budgets to the County Board of Commissioners, which budgets are required to comply with the limitations set forth in Idaho Code § 63-802. Therefore, the impact of revenue allocation is more of a product of the imposition of Idaho Code § 63-802, than the effect of urban renewal. The County Board of Commissioners calculates the levy rate required to produce the proposed budget amount for each taxing entity using the assessed values which are subject to each taxing entity's levy rate. Assessed values in urban renewal districts which arc subject to revenue allocation (incremental values) are not included in this calculation. The combined levy rate for the taxing entities is applied to the incremental property values in a revenue allocation area to determine the amount of property tax revenue which is allocated to an urban renewal agency. The property taxes generated by the base values in the urban renewal districts and by properties outside revenue allocation areas are distributed to the other taxing entities. Properties in revenue allocation areas are subject to the same levy rate as they would be outside a revenue allocation area. The difference is how the revenue is distributed. If the overall levy rate is less than assumed, the Agency will receive fewer funds from revenue allocation. In addition, without the Revenue Allocation Area and its ability to pay for public improvements and public facilities, fewer substantial improvements within the Revenue Allocation Area would be expected during the term of the Plan; hence, there would be lower increases in assessed valuation to be used by the other taxing entities. The Study's analysis is premised upon the fact the proposed development would not occur but for the ability to use revenue allocation fiends to fund certain significant public infrastructure improvements. One result of new construction occurring outside the revenue allocation area (Idaho Code §§ 63-802 and 63-301A) is the likely reduction of the levy rate as assessed values increase for property within each taxing entity's jurisdiction. From and after December 31, 2006, Idaho Code § 63-301A prohibits taxing entities from including, as part of the new construction roll, the increased value related to new construction within a revenue allocation area until the revenue allocation authority is terminated. Any new construction within the Project Area is not available in the short term for inclusion by the taxing entities to increase their budget capacity. Under current law, upon termination of this Plan or deannexation of area, the taxing entities will be able to include the accumulated new construction roll value in setting the following year's budget and revenue from such value is not limited to the three percent increase allowed in Idaho Code § 63- 802(1)(a). 32 As 2019 certified levy rates are not determined until late September 2020, the 2019 certified levy rates have been used in the Study for purposes of the analysis.3 Those taxing districts and rates area as follows: Taxing District Levies: Ada County 002549212 Ada County Highway District .000771526 City of Meridian .003083910 West Ada School District .000014448 Ada County Ambulance .000121i 963 Mosquito Abatement District .000021765 College of Western Idaho .000128506 Meridian Cemetery .000037985 Meridian Free Library .000441567 Western Ada Recreation 000042391 TOTAL: .007213273 The Study has made certain assumptions concerning the levy rate primarily based on the Idaho Legislature's intended study of the property tax system, as well as the recognition of the termination of the Meridian Revitalization Plan Urban Renewal Project during the life of this Plan and Project Area. For purposes of this Plan and the Study, the levy rate is estimated conservatively to be .0065, which is an almost 10% reduction of the estimated applicable levy rate set forth above. The levy rate is estimated to stay level for the life of the revenue allocation area. If the overall levy rate is less than projected, or the land values do not increase as expected, or expected development fails to occur as estimated, the Agency shall receive fewer fiends from revenue allocation. Pursuant to Idaho Code § 50-2908, the Agency is not entitled to revenue allocation proceeds from certain levy increases which are allowed by either specific statutory authorization or approved by an election of the qualified electors of the particular taxing district. Therefore, for any levy election, the Agency will not receive revenue allocation funds which would have been generated by imposing that levy on the assessed valuation within the Project Area. The Study has taken this statute into account. 503 Lease Revenue, Parking Revenue, and Bonds Under the Law (Idaho Code § 50-2012), the Agency is authorized to issue revenue bonds to finance certain public improvements identified in the Plan. Under that type of financing, the public entity would pay the Agency a lease payment annually which provides certain funds to the Agency to retire the bond debt. Another variation of this type of financing is sometimes referred to as conduit financing, which provides a mechanism where the Agency uses its bonding 3 Due to the timing of the taxing districts' budget and levy setting process, certification of the 2020 levy rates did not occur until after this Plan had been prepared and considered by the Agency. In order to provide a basis to analyze the impact on the taxing entities,the 2019 levy rates are used. Use of the 2019 levy rates provides a more accurate base than estimatuig the 2020 levy rates. 33 authority for the Project, with the end user making payments to the Agency to retire the bond debt. These sources of revenues are not related to revenue allocation funds and are not particularly noted in the Study, because of the "pass through" aspects of the financing. Under the Act, the economic feasibility study focuses on the revenue allocation aspects of the Agency's financial model. These financing models typically are for a longer period of time than the 20-year period set forth in the Act. However, these financing models do not involve revenue allocation fiends, but rather funds from the end users which provide a funding source for the Agency to continue to own and operate the facility beyond the term of the Plan as allowed by Idaho Code § 50-2905(8) as those resources involve funds not related to revenue allocation Rinds. 504 Membership Dues and Support of Community Economic Development The Act is premised upon economic development being a valid public purpose. To the extent allowed by the Law and the Act, the Agency reserves the authority to use revenue allocation funds to contract with non-profit and charitable organizations established for the purpose of supporting economic development and job creation. Additionally, the Agency reserves the authority to expend revenue allocation funds to join, participate and support non- profit organizations established to support Agency best practices and administration. The District Operating Expenses identified in the Study shall be deemed to include expenditures for the purposes described in this section as may be deemed appropriate during the annual budgetary process. 600 ACTIONS BY THE CITY AND OTHER PUBLIC ENTITIES The City shall aid and cooperate with the Agency in carrying out this Plan and shall take all actions necessary to ensure the continued fulfillment of the purposes of this Plan and to prevent the recurrence or spread in the area of conditions causing deterioration. Actions by the City shall include, but not be limited to, the following: a. Institution and completion of proceedings necessary for changes and improvements in private and publicly owned public utilities within or affecting the Project Area, b. Revision of zoning (if necessary) within the Project Area to permit the land uses and development authorized by this Plan. C. Imposition wherever necessary of appropriate controls within the limits of this Plan upon parcels in the Project Area to ensure their proper development and use. d. Provision for administrative enforcement of this Plan by the City after- development. The City and the Agency may develop and provide for enforcement of a program for continued maintenance by owners of all real 34 property, both public and private, within the Project Area throughout the duration of this Plan. e. Building Code enforcement. f. Performance of the above actions and of all other functions and services relating to public peace, health, safety, and physical development normally rendered in accordance with a schedule which will permit the development and/or redevelopment of the Project Area to be commenced and carried to completion without unnecessary delays. g. The undertaking and completing of any other proceedings necessary to carry out the Project. h. Administration of Community Development Block Grant funds that may be made available for this Project. i. Appropriate agreements with the Agency for administration, supporting services, funding sources, and the like. j. Use of public entity labor, services, and materials for construction of the public improvements listed in this Plan. k. Coordination of the development agreements entered into by the City and developer with the goals of the Plan. 1. Assist with coordinating and implementing the public improvements in the Project Area identified in the Study. Tn addition to the above, the City may elect to waive hookup or installation fees for sewer, water, or other utility services for any facility owned by any public entity or Agency facility and waive any city impact fee for development within the Project Area. The foregoing actions to be taken by the City do not constitute any commitment for financial outlays by the City or other applicable public entity. 601 Maintenance of Public Improvements The Agency has not identified any commitment or obligation for Iong-term maintenance of the public improvements identified. The Agency will need to address this issue with the appropriate entity, public or private,who has benefited from or is involved in the ongoing preservation of the public improvement. The Agency expects to dedicate public improvements to the City. 35 700 ENFORCEMENT The administration and enforcement of this Plan, including the preparation and execution of any documents implementing this Plan, shall be performed by the Agency and/or the City. 800 DURATION OF THIS PLAN, TERMINATION, AND ASSET REVIEW The provisions of this Plan shall be effective, and the provisions of other documents formulated pursuant to this Plan, shall be effective for twenty (20) years from the effective date of the Plan subject to modifications and/or extensions set forth in Idaho Code §§ 50-2904 and 50-2905(7). The revenue allocation authority will expire on December 31, 2040, except for any revenue allocation proceeds received in calendar year 2041, as contemplated by Idaho Code § 50-2905(7). The Agency may use proceeds in 2041 to complete the projects set forth herein. As stated in the Plan, any owner participation agreement or disposition and development agreement obligations will cease as of December 31, 2040. Idaho Code § 50-2903(5) provides the Agency shall adopt a resolution of intent to terminate the revenue allocation area by September 1 of the termination year. In order to provide sufficient notice of termination to the affected taxing districts to allow them to benefit from the increased budget capacity, the Agency will use its best efforts to provide notice of its intent to terminate this Plan and its revenue allocation authority by May 1, 2041, or if the Agency determines an earlier terminate date, then by May I of the early termination year: a. When the Revenue Allocation Area plan budget estimates that all financial obligations have been provided for, the principal of and interest on such moneys, indebtedness, and bonds have been paid in full or when deposits in the special fund or fluids created under this chapter are sufficient to pay such principal and interest as they come due, and to Rind reserves, if any, or any other obligations of the Agency funded through revenue allocation proceeds shall be satisfied and the Agency has determined no additional project costs need be funded through revenue allocation financing, the allocation of revenues under Idaho Code § 50- 2908 shall thereupon cease; any moneys in such fund or funds in excess of the amount necessary to pay such principal and interest shall be distributed to the affected taxing districts in which the Revenue Allocation Area is located by the County Clerk in the same manner and proportion as the most recent distribution to the affected taxing districts of the taxes on the taxable property located within the Revenue Allocation Area; and the powers granted to the urban renewal agency under Idaho Code § 50-2909 shall thereupon terminate. b. In determining the termination date, the Plan shall recognize that the Agency shall receive allocation of revenues in the calendar year following the last year of the revenue allocation provision described in the Plan. e. For the fiscal year that immediately predates the termination date, the Agency shall adopt and publish a budget specifically for the projected revenues and 36 expenses of the Plan and make a determination as to whether the Revenue Allocation Area can be terminated before January I of the termination year pursuant to the terms of Idaho Code § 50-2909(4). In the event that the Agency determines that current tax year revenues are sufficient to cover all estimated expenses for the current year and all future years, by May 1,but in any event, no later than September 1, the Agency shall adopt a resolution advising and notifying the local governing body, the county auditor, and the State Tax Commission, recommending the adoption of an ordinance for termination of the Revenue Allocation Area by December 31 of the current year, and declaring a surplus to be distributed as described in Idaho Code § 50-2909 should a surplus be determined to exist. The Agency shall cause the ordinance to be filed with the office of the county recorder and the Idaho State Tax Commission as provided in Idaho Code § 63-215. Upon termination of the revenue allocation authority of the Plan to the extent the Agency owns or possesses any assets, the Agency shall dispose of any remaining assets by granting or conveying or dedicating such assets to the City. As allowed by Idaho Code § 50-2905(8), the Agency may retain assets or revenues generated from such assets as loans; the Agency shall have resources other than revenue allocation funds to operate and manage such assets. Similarly, facilities which provide a lease income stream to the Agency for frill retirement of the facility debt will allow the Agency to meet debt services obligations and provide for the continued operation and management of the facility. For those assets which do not provide such resources or revenues, the Agency will likely convey such assets to the City, depending on the nature of the asset. 900 PROCEDURE FOR AMENDMENT OR MODIFICATION To the extent there are any outstanding loans or obligations, this Plan shall not be modified pursuant to the provisions set forth in Idaho Code § 50-2903A. Modification of this Plan results in a reset of the base value for the year immediately following the year in which the modification occurred to include the current year's equalized assessed value of the taxable property in the revenue allocation area, effectively eliminating the Agency's revenue stream as more fully set forth in Idaho Code § 50-2903A subject to certain limited exceptions contained therein, including the exception to allow an amendment to support growth of an existing commercial or industrial project. I.C. § 50-2903A(1)(a)(iv).. As more specifically identified above, the Agency's projections are based on estimated values, estimated levy rates, estimated future development, and estimated costs of future construction/improvements. Annual adjustments as more specifically set forth in the Agency's annual budget will be required to account for snore/less estimated revenue and prioritization of projects. Any adjustments for these stated purposes are technical and ministerial and are not deemed a modification under Idaho Code § 50-2903A(l)(a)(i). 37 1000 SEVERABILITY If any one or more of the provisions contained in this Plan to be performed on the part of the Agency shall be declared by any court of competent jurisdiction to be contrary to law, then such provision or provisions shall be null and void and shall be deemed separable from the remaining provisions in this Plan and shall in no way affect the validity of the other provisions of this Plan. 1100 ANNUAL REPORT AND OTHER REPORTING REQUIREMENTS Under the Law, the Agency is required to file with the City, on or before March 31 of each year, a report of the Agency's activities for the preceding calendar year, which report shall include a complete financial statement setting forth its assets, liabilities, income, and operating expenses as of the end of such calendar year. This annual report shall be considered at a public meeting to report these findings and take comments from the public. Additionally, the Agency must comply with certain other reporting requirements as set forth in Idaho Code § 57-450E, the local government registry portal, Idaho Code § 50-2913, the tax commission plan repository, and Idaho Code § 50-2903A, the flax commission's plan modification annual attestation. Failure to report the information requested under any of these statutes results in significant penalties, including loss of increment revenue, and the imposition of other compliance measures by the Ada County Board of County Commissioners. 1200 APPENDICES, ATTACHMENTS,EXHIBITS, TABLES All attachments and tables referenced in this Plan are attached and incorporated herein by their reference. All other documents referenced in this Plan but not attached are incorporated by their reference as if set forth fully. 38 UNION DISTRICT CITY OF MERIDIAN, ADA COUNTY, .IDAHO i E PINE AVE z 3: i z m IT A D z CJ z z -�] [ Q S 8°3829"E 464.8 ' E IDAHO AVE N k6 m �n n M Q S 88°4224"E 38 0.05 rn E B ROAC}WAY AVE v, 3 kn a7l1EI(A�: ......................... ............................................. `-" o *r r y :• �•SC•. Lu _M M �1 O Fit : , 1A�.......-. / N 88030'19"W 831,04' �3ootily6 � '� t?/ti9 G w 1 574 , R E FRANKLIN RD `�?�OF --- -- Y N 89°32'43"W l 1I y� -—-—-—-—-—-— I318.I2' 3 8 �,F BEXG NT5 PROJECT: OWNER/DEVELOPER: 2030 S. WASHING70N AVE. DWG# UNION DISTRICT EMMETF,ID 83617 120018-Ex ANNEXATION EXHIBIT EERIDIAN,LL I „ P: 208)396-8104 PRo1Ecr# MERIDIAN, 1 F: �208)398-8105 120018 SEC, 7, T3N, ROE, B.M. 208-914.6131 dWr007- ADA COUNTY, 1DAH0 SNEEr DATE: W2020 Lprrd�uruc�i /GG WWW.SAWTOOTHLS.COM 1 OF 1 Attachment 1 Project Area and Revenue Allocation Area Boundary Map Attachment 2 Legal Description of Project Area and Revenue Allocation Area An area consisting of approximately 16 acres as more particularly described as follows: Sawtooth Land Surveying, LLC AW ODT/ F: (208) 398-8I 04 F: (208) 398-8105 2030 S. Washington Ave., Emmett, ID 836 17 De-Annexation & Annexation Legal Description for Union District A tract of land consisting of approximately 15.90 acres being a portion of Section 7, Township 3 North, Range 1 East, Boise Meridian, City of Meridian, Ada County, Idaho, more particularly described as follows: COMMENCING at the Section Corner common to Sections 12 and 13 of Township 3 North, Range 1 West and Sections 7 and 18 of Township 3 North, Range 1 East of the Boise Meridian, thence along the section line common to said Sections 12 and 13, being the centerline of Franklin Road North 89°32'43" West 1328.12 feet to the East 1/16th Corner on said section line;thence North 53°01'09" East, 2291.26 feet to the intersection of the southerly right of way of Union Pacific Railroad and the westerly right of way of N. Main St. and the POINT OF BEGINNING; thence North 0'33'11" East, coincident with said westerly right of way of N. Main St., 639.69 feet to the northerly right of way of E. Broadway Ave.; thence South 88°42'24" East, coincident with said northerly right of way of E. Broadway Ave., 390.05 feet to the westerly right of way of E. 2nd St.; thence North 0°33'15" East, coincident with said westerly right of way of E. 2nd St., 336.24 feet to the northerly right of way of E. Idaho Ave.; thence South 88°38'29" East, coincident with said northerly right of way of E. Idaho Ave.,464.82 feet to the easterly right of way of E. 3rd St.; thence South 1°21'54" West, coincident with said easterly right of way of E. 3rd St., 978.24 feet to said southerly right of way of Union Pacific Railroad; thence North 88'30'19"West, coincident with said southerly right of way of Union Pacific Railroad, 831.04 feet to the POINT OF BEGINNING. 1. 11574 ' ; !j 4�E OF ,0�� Attachment 3 Properties (Public and/or Private) Which May Be Acquired by Agency 1. Properties which may be subject to acquisition by the Agency included parcels to: a) assemble with adjacent parcels to facilitate development and/or redevelopment; b) assemble with adjacent rights-of-way to improve configuration and enlarge parcels for development and/or redevelopment, c) reconfigure sites for development and possible extension of streets or pathways d) assemble for future transfer to qualified developers to facilitate the development of mixed-use, residential, commercial, office and retail areas. e) assemble for the construction of certain public improvements, including but not limited to streets, streetscapes, water and sewer improvements, environmental and floodplain remediation/site preparation, public parking, community and recreation facilities, parks, pedestriaii/bike paths and trails, and open space. 2. The Agency reserves the right to acquire any additional right-of-way or access routes near or around existing or planned rights-of way. 3. The Agency reserves the right to acquire property needed to provide adequately sized sites for high priority projects for the development of public improvements (the exact location of which has not been determined). 4. Other parcels may be acquired for the purpose of facilitating catalyst or demonstration projects, constructing public parking, constructing new streets or pathways, enhancing public spaces, or to implement other elements of the urban renewal plan strategy and/or the Plan for the Project Area. Attaclunent 4 Map Depicting Expected Land Uses and Current Zoning Within Revenue Allocation Area and Project Area Z U •L -Af71 Y O� N H19 3 �' o"- a� LO c O O o IS HIS 3N 3Ad N HIS D CL la� f++ 3 N 1 1 T ,t o a I IS HIP 3N Q a' 0 ouj ins a m a. is 1S Q21£3N 0.; F .u+ W 1 W a ■ - 3 W s - m ■ ■ ■ ■ _ 1S QNZ 3N' ■�■�■E■I� tSaNZ3N ■ Q j ui W %f■f■f■,■f■f■f■ ■r W * , moo uj P Clb-N` IC31N3LU W N L C V W a m Q �o is IS[ MN3_-- J c111T tS UNZ MN a 0 3 U U 3 � O > ad ANO � CLO'�: n -� _1S 421E MN •� N1 At 1S_H19 3N . o" uO 1S H1S 3N ❑ 3AV N f His W 3N o J T a 1S HIP 3N a 3 a O 0in W =, LU r- a -� �1S a8E 3N ■ _ a a W 2 3r H 'o W W Ell H 71 IS CINZ dN 1S 4NZ 3N t� P -cc Ll M l W' W — a� _ W� W 4 Nb'1 . 1 3w-N N'M�❑ 11 I I I I ~ W fe N c �o co LLI Q 1S 1S[ MN W 3 oc jrV �a c a1 0 iIS CNZ MN -0 c 11 E 3 � a�Jm o x FIR 3 ::E -9 U 0 :�i o1S Qb£MN - - u LJ Attachment 5 Economic Feasibility Study 4840-3668-4470,v.4 ECONOMIC FEASIBILITY STUDY ATTACHMENT 5.1 Public Improvements within the Revenue Allocation Area This Attachment includes a statement listing the kind, number, and proposed location of all proposed public works or improvements proposed to be installed within the Project Area, together with the estimated costs of such improvements pursuant to Idaho Code § 50-2905. This Attachment also sets forth a finding as to the economic feasibility of the proposed Project recognizing the specific assumptions used in the modeling, including a description of the methods of financing the estimated project costs, the timing of development and cash flow analysis. As more fully set forth in the Plan, the proposed Project to be funded by revenue allocation funds includes fully improved streets, utilities, and other public rights-of-way amenities, as well as park and open spaces, a community center and associated public parking facilities and/or structures. The Meridian Development Corporation ("MDC") Public Improvement List set forth below identifies with specificity needed investments to support private investment in capital facilities. Capital facilities generally have long useful lives and significant costs. The overall Project and the infrastructure to support it are all consistent with the vision articulated in the City of Meridian Comprehensive Plan and as required in City development regulations. The cost estimates provided by architects and consulting engineers are based upon prices for similar construction in the broader area for 2020 and have not been adjusted for inflation. Estimated costs proposed to be incurred in implementing the Plan are as follows: Public Improvement List Proposed Public Infrastructure, Including Engineering, Design, Installation, Construction, and/or Reconstruction of: Improvements to 3rd Street Improvements to Broadway Avenue Intersection Improvements and Rail Crossing Safety Enhancements Pedestrian Improvements Streetscape Improvements Sewer Infrastructure Improvements Water Infrastructure Improvements Electrical Distribution Improvements Right-of-Way Landscaping Improvements Utility Relocations Lateral Relocation and Improvements Attachment 5 - 1 Irrigation and Drainage Improvements Sub-total $1,215,000 Additional Public Parking Facilities and Open Space $1,510,000 Civic Block Improvements Civic Block Site Improvements $1,615,000 Structured Public Parking $4,250,000 Sub-Total $5,865,000 Community Center Construction $6,450,000 City of Meridian Community Center Contribution (53,000,000) Net Project Area Cost Construction $3,450,000 Total Civic Block and Structure Parking Cost $12,315,0001 Grand Total $12,040,000 It is understood the estimated costs detailed above will change over the life of the Plan due to inflation, further project refinement, timing and bidding. The cost estimates are a necessary assumption in determining economic feasibility and are estimates for the purpose of financial planning. Based on the assumptions made in the Study, the Project Area is estimated to generate $16,286,437 in tax increment/revenue allocation proceeds between 2020 and 2040. Initial urban renewal planning costs are estimated to be funded by a $75,000 interfund loan from MDC. Additionally, the Study assumes a $3,000,000 contribution from the City to support the construction of the proposed community center.The City's anticipated contribution is from Parks and Recreation impact fees that have been collected for a community center. At this time the City has not obligated any funds from impact fees or the general fund for the proposed community center. The estimated total resources for the Project are estimated to be $19,361,437. As identified above, there are presently$12,040,000 of estimated total Project Costs related to the Project after the City of Meridian's contribution. The feasibility analysis assumes Projects will be implemented and advance-funded by property owners and/or ' Includes City Community Center Contribution. Attachment 5 - 2 developers. For purposes of Idaho Code § 50-2905 and the Study, it is assumed that any owner or developer participant in the Project will be reimbursed with tax increment/revenue allocation proceeds through an owner participation agreement (OPA) negotiated by and between MDC and any owner and/or developer participant. Based on information from MDC staff, MDC currently administers OPAs in existing project areas utilizing 75% or 90% reimbursement to the owner or developer participant from tax increment/revenue allocation proceeds, In analyzing the economic feasibility of the proposed Project, an assumption of a 75/25 split is used recognizing the actual split will be subject to any negotiated OPA. For purposes of determining economic feasibility of the Project, administrative costs (District Operating Expenses) over the 20-year life of the Project Area are estimated to be $968,105 or approximately 6% of total estimated revenue. This amount was calculated using the assumption of 10% of annual tax increment/revenue allocation proceeds for administration of the Project Area or $50,000 per year. The actual amount of administrative costs will be set forth and determined in the MDC's annual budget; however, for purposes of economic feasibility an estimate of costs is necessary. The initial interfund loan from MDC for preliminary Project Area costs is estimated in the Study to be repaid at 5%simple interest for a total obligation of$112,500. Considering the estimated revenue allocation proceeds over the life of the Project Area less the estimated Project costs, there is estimated to be a $100,000 positive balance of at the end of the 20-year term, rendering the Project economically feasible. Attachments 5.3 and 5.4 provide detailed information concerning revenue estimates and cash flow analysis. In analyzing the methods of financing, secure funding includes revenue allocation funds and is money the MDC is highly likely to receive should private development occur within the Project Area. The funds may not be in the MDC's possession at the beginning of the Plan period, but it is virtually certain MDC will receive the funds should private development proceed as proposed. MDC may need to take specific actions to generate the funding, but those actions are within its powers. Despite the high probability of secure funding, no Project can proceed until a specific, enforceable funding plan is in place, Potential funding is money that might be received by the MDC over the life of the Project Area. It is funding the MDC is eligible for and exists under current law; however, each potential funding source requires one or more additional steps or decisions before the MDC can obtain the resources, and the ultimate decision is outside of the MDC's independent control. The proposed City capital contribution to the community center and grant funds are examples of potential funding. Additionally, the issuance of bonds is not anticipated in this analysis. Potential funding is not assumed in determining economic feasibility. Attachment 5 -3 Unfunded Projects, or portions of Projects are those lacking secure or potential funding. Unfunded Projects are not considered or assumed in determining economic feasibility. It is generally understood, the amount of tax increment/revenue allocation contributed to the Project will vary from the assumptions and estimates used in the economic feasibility study depending upon actual revenue and the actual cost of the Projects. Other sources of funding for Projects may include, but are not limited to: • Local Improvement Districts (LID) + Business Improvement Districts (BID) = Development Impact Fees + Franchise Fees + Grants from federal, state, local, regional agencies and/or private entities + Other bonds, notes and/or loans Summary of Estimated Cost of Operations and Improvements by Year Based on Assumptions(2020-2041) Year Secure Fuznd[ng Potent[ VIAG Lear, OPR DebC r £dotal Pra�eaC (T(F al Operat[n petit Serv[ce Servi ce(7'5�rr L[al�fhties , & l F -05 40' J, NOW expenses r � ' @ 2 65 �y 2020 $75,000 $0 $25,000 $0 h$25,00p 2021 $0 $0 $25,000 $0 $25,O;OQ 2022 $0 $0 $25,000 $0 2023 $447,366 $0 $44,737 $40,000 $335,525 2024 $456,578 $0 $48,368 $45,000 $342,434 ;'$935A02;'� 2025 $823,409, $0 $S0,000 $27,500 $617,557 2026 $840,141 $0 $50,000 $0 $630,106 6 2027 $857,207 $0 $50,00o $0 $643,475 2028 $874,615 $0 $50,000 $0 $824,615 2029 $892,371 $0 $50,000 $0 $842,371892,37 2030 $910,482 $0 $50,000 $0 $860482 $90,�k82: 2031 $928,955 $0 $50,000 $0 $878,955 2032 $947,797 $0 $50,000 $0 $897,797 2033 $967,016 $0 $50,000 $0 $917,016 2034 $986,619 $0 $50,000 $0 $936,619 $986,b�:19 2035 $1,006,614 $0 $50,000 $0 $956,615 2036 $1,027,008 $0 $50,000 $0 $977 008 2037 $1,047,811 $0 $50,000 $0 $997,8111,047,81 2038 $1,069,029 $0 $50,000 $0 $1,019,029 2039 $1,090,672 $0 $50,000 $0 $1,040 672 2040 $1,112,747 $0 $50,000 $0 $1,462,746 2,761 2041 $0 $0 0 $112,SKIM5 3 $33 � 6 26X,437 < Attachment 5 -4 ATTACHMENT 5.2 Determination of Economic Feasibility Based on Assumptions Based upon reasonable assumptions and recognizing MDC's ability to prioritize Projects in its budget and negotiate the terms of any owner participation agreement with an owner and/or developer, the Plan is deemed to be economically feasible as the estimated revenue in the Project Area exceeds the estimated Project costs. The economic feasibility of the Plan is based, in part, on the following factors: • The value of new taxable private development proposed in the Project Area • The timing of the proposed taxable development • The nature of the propose taxable development The amount of tax increment/revenue allocation proceeds to be generated by proposed development • The estimated cost of public improvement projects in 2020 dollars • That the Projects are assumed to be advance funded by any owner or developer in the Project Area to be reimbursed with tax increment/revenue allocation proceeds overtime pursuant to negotiated owner participation agreements. • If estimated revenue projections equal or exceed estimated project costs, the Plan is deemed to be economically feasible. The following is a summary of the analysis and estimates of the factors used to determine the economic feasibility of the MDC Union District Urban Renewal Plan. Attachments 5.3 and 5.4 provide a more detailed outlook on the revenues and expenses in determining economic feasibility. The following assumptions were used in Attachments 5.3 and 5.4 to support of finding the Project meets the requirements of economic feasibility: a Land Value Increases @ 1%/Yr. o Improvement Value Increases @ 2%/Yr. a Applicable Levy Rate is reduced from the 2019 certified applicable levy rates by an estimated 10% and held constant through the life of the Plan and Project Area. The Applicable Levy Rate does not include any exempted levies as identified in Idaho Code § 50-2908 o Total estimated Cost of Improvements over the life of the project: $12,040,000, afterthe City of Meridian's contribution to the community center in the amount of$3,000,000 a Attachment 5.4 assumes 75% of the annual available tax increment/revenue allocation will be committed to reimburse an owner Attachment 5 -5 or developer for advance-funded public improvements. It is understood and recognized the actual reimbursement percentage is a term to be negotiated under any OPA o Attachment 5.4 provides for "Additional Principal" payments to any owner or developer if sufficient funds are available and provided for in any OPA In summary, based on the assumptions as set forth in Attachments 5.1 and 5.2, and as supported by Attachments 5.3 and 5.4, it is evident the Project will generate adequate revenue within the Project Area to fund the necessary Projects rendering the Project economically feasible. 4852-5500-2807,v.7 Attachment 5 - 6 tO co m r-I h In rt N Vl h LO m Q 00 ,-5 m ry h rl t O Q O r i� GO to Cil r1 ri l4 C oz N n Q ' m VI N tD M Q a1 h p tD tip O 00 O to n h C3 M O C� Q St O 00 M n t0 t0 n of m n IV m a h Ol a N Q to h 01 W m m h al r-I Q to M Q h n 00 00 00 00 00 � m m [il CT CR a a O V} VT V} to th V} Vy to V} VT i!? 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"'2 1,0 M -2, 4� X, I r ",14C M 21 A -"7 Al! 2.1 gig MERIDIAN DEVELOPMENT CORPORATION THE URBAN RENEWAL AGENCY OF THE CITY OF MERIDIAN RESOLUTION NO. 20-009 BY THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF MERIDIAN, IDAHO, AIKIA THE MERIDIAN DEVELOPMENT CORPORATION: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF MERIDIAN, IDAHO, ALSO KNOWN AS THE MERIDIAN DEVELOPMENT CORPORATION, RECOMMENDING AND ADOPTING THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT URBAN RENEWAL PROJECT, WHICH PLAN INCLUDES REVENUE ALLOCATION FINANCING PROVISIONS; AUTHORIZING AND DIRECTING THE CHAIR OR VICE-CHAIR OF THE AGENCY, OR THE AGENCY ADMINISTRATOR, TO TAKE APPROPRIATE ACTION; AUTHORIZING AND DIRECTING THE AGENCY ADMINISTRATOR AND SECRETARY OF THE AGENCY TO MAKE CERTAIN TECHNICAL CHANGES; PROVIDING FOR THIS RESOLUTION TO BE EFFECTIVE UPON ITS PASSAGE AND APPROVAL; 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"), and the Local Economic Development Act, Chapter 29, Title 50, Idaho Code, as amended (the "Act"), 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-�J - 1 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; 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, the Downtown District Plan and the Ten Mile Plan and their project areas are referred to as the Existing Project Areas; WHEREAS, pursuant to Idaho Code § 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 § 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, 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 is currently the subject of a plan amendment to the Downtown District Plan to de-annex the proposed area. The area is generally east of Main Street, south of Idaho Avenue, west of E. 311 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 obtained the 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 a deteriorated area as defined by Idaho Code Sections 50-2018(9) and 50-2903(8); WHEREAS, pursuant to Idaho Code §§ 50-2018(9) and 50-2903(8), which define a deteriorating area and a deteriorated area, many of the conditions necessary to be present in such an area are found in the Union District Area; WHEREAS, the effects of the listed conditions cited in the Report result in economic underdevelopment of the area, substantially impairs or arrests the sound RESOLUTION NO. 20- - 2 growth of a municipality, constitutes an economic or social liability, and is a menace to the public heath, safety, morals, or welfare in tis present condition or use; WHEREAS, the MDC Board, on February 26, 2020, adopted Resolution No. 20- 00E accepting the Report and authorized the MDC Chair, Vice-Chair or Administrator 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 MDC to prepare an urban renewal plan for the Union District Area, which plan may include a revenue allocation area as allowed by the Act; WHEREAS, the City Council, by Resolution No. 20-2188, dated March 10, 2020, declared the Union District Area described in the Report to be a deteriorated area or a deteriorating area as defined by Chapters 20 and 29 of Title 50, Idaho Code, as amended, that such area is appropriate for an urban renewal project and directed MDC to commence preparation of an urban renewal plan for the area designated; WHEREAS, MDC has embarked on an urban renewal project referred to as the Urban Renewal Plan for the Union District Urban Renewal Project ("Union District Plan") to redevelop a portion of the City, pursuant to the Law and the Act, as amended; WHEREAS, the Union District Plan proposes to create an urban renewal area commonly known as the Union District Project Area, which area is shown on the Project Area and Revenue Allocation Boundary Map and generally described in the Description of the Project Area and Revenue Allocation Area, which are attached to the Union District Plan as Attachments 1 and 2 respectively. The Union District Project Area includes area to be deannexed from the Downtown District Plan, to be amended by the First Amendment to the Meridian Revitalization Plan; WHEREAS, in order to implement the provisions of the Act and the Law either MDC may prepare a plan, or any person, public or private, may submit such plan to MDC; WHEREAS, MDC and interested property owners, developers and consultants have prepared the proposed Union District Plan for the area previously designated as eligible for urban renewal planning; WHEREAS, the Act authorizes MDC to adopt revenue allocation financing provisions as part of an urban renewal plan; WHEREAS, the Union District Plan also contains provisions of revenue allocation financing as allowed by the Act; WHEREAS, in order to implement the provisions of the Law and the Act, MDC shall prepare and adopt the Union District Plan and submit the Union District Plan and recommendation for approval thereof to the City; RESOLUTION NO. 20- - 8 WHEREAS, as required by the Law and the Act, MDC has reviewed the information within the Union District Plan concerning the use of revenue allocation funds and approved such information and considered the Union District Plan at its meeting on March 25, 2020; WHEREAS, the MDC Board, at several MDC Board meetings during 2020, has considered public improvements related to the Union District Project Area; WHEREAS, the Union District Plan will be tendered to the Planning and Zoning Commission and to the City for their consideration and review as required by the Law and the Act,- WHEREAS, under the Act, the Union District Plan shall include with specificity the following; (1) a statement describing the total assessed valuation of the base assessment roll of the revenue allocation area and the total assessed valuation of all taxable property within the municipality; (2) a statement listing the kind, number, and location of all proposed public works or improvements within the revenue allocation area; (3) an economic feasibility study; (4) a detailed fist of estimated project costs; (5) a fiscal impact statement showing the impact of the revenue allocation area, both until and after the bonds are repaid, upon all taxing districts levying taxes upon property in the revenue allocation area; and (6) a description of the methods of financing all estimated project costs and the time when related costs or monetary obligations are to be incurred; (7) a termination date for the plan and the revenue allocation area as provided for in Idaho Code § 50-2903(20); and (8) a description of the disposition or retention of any assets of the agency upon the termination date; WHEREAS, it is necessary and in the best interests of the citizens of the City to recommend approval of the Union District Plan and to adopt, as part of the Union District Plan, revenue allocation financing provisions that will help finance urban renewal projects to be completed in accordance with the Union District Plan in order to (1) encourage private development in the urban renewal area; (2) to prevent and arrest decay of the Union District Project Area due to the inability of existing financing methods to provide needed public improvements; (3) to encourage taxing districts to cooperate in the allocation of future tax revenues arising in the Union District Project Area in order to facilitate the long-term growth of their common tax base; (4) to encourage the long-term growth of their common tax base; (5) to encourage private investment within the City and (6) to further the public purposes of MDC; WHEREAS, the MDC Board finds that the equalized assessed valuation of the taxable property in the revenue allocation area described in Attachments 1 and 2 of the Union District Plan is likely to increase as a result of initiation of urban renewal projects in accordance with the Union District Plan; RESOLUTION NO. 20- -4 WHEREAS, under the Law and Act, any such plan should provide for (1) a feasible method for the location of families who will be displaced from the urban renewal area in decent, safe and sanitary dwelling accommodations within their means and without undue hardship to such families; (2) the urban renewal plan should conform to the general plan of the municipality as a whole; (3) the urban renewal plan should give due consideration to the provision of adequate park and recreational areas and facilities that may be desirable for neighborhood improvement, with special consideration for the health, safety and welfare of the children residing in the general vicinity of the site covered by the plan; and (4) the urban renewal plan should afford maximum opportunity, consistent with the sound needs of the municipality as a whole, for the rehabilitation or redevelopment of the urban renewal area by private enterprise; WHEREAS, if the urban renewal area consists of an area of open land to be acquired by the urban renewal agency, such area shall not be so acquired unless (1) if it is to be developed for residential uses, the local governing body shall determine that a shortage of housing of sound standards and design which is decent, safe and sanitary exists in the municipality; that the need for housing accommodations has been or will be increased as a result of the clearance of slums in other areas; that the conditions of blight in the area and the shortage of decent, safe and sanitary housing cause or contribute to an increase in and spread of disease and crime and constitute a menace to the public health, safety, morals, or welfare; and that the acquisition of the area for residential uses is an integral part of and essential to the program of the municipality, or (2) if it is to be developed for nonresidential uses, the local governing body shall determine that such nonresidential uses are necessary and appropriate to facilitate the proper growth and development of the community in accordance with sound planning standards and local community objectives, which acquisition may require the exercise of governmental action, as provided in this act, because of defective or unusual conditions of title, diversity of ownership, tax delinquency, improper subdivisions, outmoded street patterns, deterioration of site, economic disuse, unsuitable topography or faulty lot layouts, the need for the correlation of the area with other areas of a municipality by streets and modern traffic requirements, or any combination of such factors or other conditions which retard development of the area; WHEREAS, the base assessment roll of the proposed Union District Project Area., together with the base assessment roll values of the Existing Project Areas, cannot exceed ten percent (10%) of the current assessed values of all the taxable property in the City; WHEREAS, the MDC Administrator and consultants recommend the MDC Board accept the Union District Plan and forward it to the City Council; WHEREAS, the MDC Board finds it in the best interests of MDC and the public to formally adopt the Union District Plan, as set forth in Exhibit 1 attached hereto, and to forward it to the Mayor and City Council, and recommend its adoption, subject to certain conditions. RESOLUTION NO. 20- - 5 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. Section 2. It is hereby found and determined that the Union District Project Area as defined in the Union District Plan is a deteriorated area or a deteriorating area as defined in the Law and the Act and qualifies as an eligible urban renewal area under the Law. Section 3. That MDC specifically adopts the Union District Plan along with any changes discussed at the March 25, 2020, MDC Board meeting, including but not limited to confirmation of levy rates, impacted taxing districts, updated list of projects, estimated location or siting of improvements, updated map or legal description, or other attachments, and any modifications to the financial analysis previously prepared by consultants, Kushlan I Associates and SMR Development, LLC. Section 4. That MDC recommends that the Union District Plan, a copy of which is attached hereto as Exhibit 1, and incorporated herein by reference, be adopted by the City Council, including those sections, modifications, or text, or replacement of attachments as discussed at the March 25, 2020, MDC Board meeting. Section 5. That this Resolution constitutes the necessary action of MDC under the Act, Idaho Code § 50-2905, recommending approval by the City Council and that the Union District Plan includes with specificity the following: (1) a statement describing the total assessed valuation of the base assessment roll of the revenue allocation area and the total assessed valuation of all taxable property within the municipality; (2) a statement listing the kind, number, and location of all proposed public works or improvements within the revenue allocation area; (3) an economic feasibility study; (4) a detailed list of estimated project costs; (5) a fiscal impact statement showing the impact of the revenue allocation area, both until and after the bonds are repaid, upon all taxing districts levying taxes upon property in the revenue allocation area; and (6) a description of the methods of financing all estimated project costs and the time when related costs or monetary obligations are to be incurred; (7) a termination date for the plan and the revenue allocation area as provided for in Idaho Code § 50-2903(20); and (8) a description of the disposition or retention of any assets of the agency upon the termination date. Section 6. It is hereby found and determined that: (a) The Union District Plan gives due consideration to the provision of adequate park and recreation areas and facilities that may be desirable for neighborhood improvement (recognizing the RESOLUTION NO. 20- - 6 commercial and mixed-use components of the Union District Plan and the need for public improvements), and shows consideration for the health, safety, and welfare of any residents or businesses in the general vicinity of the Union District Project Area covered by the Union District Plan. (b) The Union District Plan affords maximum opportunity consistent with the sound needs of the City as a whole for the rehabilitation, development and redevelopment of the Project Area by private enterprises. (c) The Union District Plan provides a feasible method for relocation of any displaced families residing within the Union District Project Area. (d) The portion of the Union District Project Area which is identified for residential uses is necessary and appropriate as there is a shortage of housing of sound standards and design which is decent, safe and sanitary in the City; that the need for housing accommodations has been or will be increased as a result of the clearance of slums in other areas; that the conditions of blight in the area and the shortage of decent, safe and sanitary housing cause or contribute to an increase in and spread of disease and crime and constitute a menace to the public health, safety, morals, or welfare; and that the acquisition of the area of residential uses is an integral part of and essential to the program of the City. (e) The portion of the Union District Project Area which is identified for non-residential uses is necessary and appropriate to facilitate the proper growth and development standards in accordance with the objectives of the Comprehensive Plan to overcome economic disuse, the need for improved traffic patterns and the need for the correlation of this area with other areas of the City. (f) The base assessment roll of the proposed Union District Project Area, together with the base assessment roll values of the Existing Project Areas, do not exceed ten percent (10%) of the current assessed values of all the taxable property in the City. (g) The Union District Plan includes a revenue allocation provision and MDC has determined that the equalized assessed valuation of the revenue allocation area will likely increase as the result of the initiation of an urban renewal project. RESOLUTION NO. 20- -7 Section 7. That this Resolution constitutes the necessary action of MDC under the Law, Section 50-2008, Idaho Code and the Act. Section 8. The Chair, Vice-Chair, or Administrator and the Secretary of MDC are hereby authorized and directed to take all steps necessary and convenient to submit the proposed Union District Plan for approval by the City Council, including but not limited to the preparation of the notice of public hearing on adoption of the revenue allocation financing provisions by the City and submittal of the Union District Plan to the various taxing entities as required by Idaho Code § 50-2906. Section 9. That this Resolution shall be in full force and effect immediately upon its adoption and approval. PASSED AND ADOPTED by the Urban Renewal Agency of the City of Meridian, Idaho, also known as the Meridian Development Corporation, on March 25, 2020, Signed by the Chairman of the Board of Commissioners and attested by the Secretary to the Board of Commissioners, on March 25, 2020. APPROVED; By Z gZe�'6— /,Z4 Chair of the Board ATTEST; 2 Secret 4832-9165-1255, v. 1 RESOLUTION NO. 20- - 8