Loading...
2020-07-21 Work Session with Meridian Development Corporation w IDIAN:--- CITY COUNCIL WORK A � SESSION MINUTES City Council Chambers 33 East Broadway Avenue Meridian, Idaho Tuesday, July 21, 2020 at 4:30 PM 1. Roll-Call Attendance Meridian City Council x Liz Strader Joe Borton x Brad Hoaglun x Treg Bernt x Jessica Perreault 5:00 Luke Cavener x Mayor Robert E.Simison Meridian Development Corporation Board of Commissioners x Dave Winder— Chairman x Diane Bevan — Member x Dan Basalone - Member x Treg Bernt— Member 4:37 Nathan Mueller—Vice-Chairman _x_Kit Fitzgerald - Member 4:45 Tammy de Weerd — Member _x_Todd Lakey— Counsel Steve Vlassek— Secretary/Treasurer _x—Ashley Squyres —Administrator _x—Rob McCarvel — Member 2. Adoption of Agenda — Adopted Item 3: Joint Meeting between the City of Meridian City Council and Meridian Development Corporation A. Civic Block Project Update Item 4: Executive Session per Idaho Code 74-206A(1)(a) To deliberate on a labor contract offer or to formulate a counteroffer; 74-206(1)(d) To consider records that are exempt from disclosure as provided in chapter 1, title 74 of Idaho Code,; and 74-206(1)(f) To communicate with legal counsel for the public agency to discuss the legal ramifications of and legal options for pending litigation, or controversies not yet being litigated but imminently likely to be litigated. In to Executive Session: 5:21 pm Out of Executive Session: 6:02 pm Adjournment: 6:03 pm CAE ���AN ITEM SHEET IDAHO Council Agenda Item - 1.A. Presenter: Estimated Time for Presentation: 0 Title of Item - Meridian Development Corporation Board of Commissioners Meridian City Council Meeting Agenda July 21,2020— Page 4 of 16 CAE ���AN ITEM SHEET IDAHO Council Agenda Item - 3.A. Presenter: Estimated Time for Presentation: 45 Title of Item - Civic Block Project Update ATTACHMENTS: Descri ti loa Galena Concept Plan Exhibit 7/15/2020 Project Update - Corrected Cover Memo 7/20/2020 Meridian City Council Meeting Agenda July 21,2020— Page 5 of 16 PF 40 Unit Low Income Senior Housing 1st & 2nd Floor Project 4 stories above the parking Community Center 9,0006f , structure. Total of 7 stories. 1 parking per floor, 2 stories, Green stall per unit roof for weddings/events 18,000sf total Parking Structure is i 155 stalls, 4" 3 Stories. f � N 1 Centennial Plaza - I r } lfacate Alley Green /►Walkable f 60 unit housing project....4 stories Benches f Gathering above the parking structure. Total • , ' w Areas of 7 stories. One parking stall per } unit. M Parking Count: Community Center- 35 - 1 st floor in Parking Structure is a Senior Housing - �� ff Terry Reilly Health Clinic 90005E Work Faroe Housing - 60 + Terry Reilly - 20 _ Total in garage- 155 ti Surface Parking 17 + �� Street Parking 30 After Hours Terry Reilly will be clost4 so evening events after 5pm TR ;w parking is available — 46 i 'ty kgenda Jdk,�I,2020— Page 6 of 16 MERIDIAN WEIDIAN �a° development core. 1` REVIVE•RENEW•REDEFINE \ JULY 21, 2020 MEMORANDUM TO: Mayor Robert Simison Meridian City Council Chairman Dave Winder Meridian Development Corporation Board of Commissioners FROM: Cameron Arial, Community Development Director Ashley Squyres, Meridian Development Corporation Administrator RE: Civic Block Project Update This report outlines activities to-date and provides an overview of the future development opportunities being considered for the downtown Civic Block properties. City and Meridian Development Corporation (MDC) staff are not seeking any official Council or Board action at this time, but would welcome and encourage discussion and guidance from both bodies regarding preferences and future direction. Project History and Description With the June 9, 2020 City Council approval of the ordinance adopting a new urban renewal district,the City and MDC stand ready to move forward to implement the Urban Renewal Plan for the new Union District (District Maps: Attachment A). The City and MDC have been collaborating to accomplish key initiatives of the City's Strategic and Comprehensive Plans and MDC's Destination Downtown plan for quite some time, working to revitalize parcels, upgrade critical infrastructure, and spur private investment within the downtown area. An RFP for a downtown development concept was broadly distributed in August 2019 to solicit redevelopment proposals for City- and MDC-owned properties between Idaho and Broadway and 2nd and 3rd Streets on the collective site known as the Civic Block.The process and project have continued to move forward since that time (Timeline: Attachment B). A third party developer, Galena Opportunity Fund ("Galena"),was unanimously selected by the Proposal Review Committee comprised of City and MDC staff and legal counsel and several downtown stakeholders.The City Council and MDC Board approved the selection and directed staff to proceed with negotiations under a set of contingencies (Approved Contingencies: Attachment C) for the redevelopment of the Civic Block properties in a true Public Private Partnership (PPP). Meridian City Council Meeting Agenda July 21,2020— Page 7 of 16 The developer proposed to harness tax increment financing (TIF) revenues of urban renewal to be generated from its conceptual Union 93 mixed-use project on the Union Pacific properties to the south and channel those revenues to public improvements to accomplish many common City and MDC strategic goals. The existing downtown urban renewal district will sunset in 2026. In analyzing TIF revenue projections, the short timeframe would not be sufficient to generate enough revenue to fund necessary public infrastructure improvements related to the Civic Block project and encourage private investment in the area. Galena proposed to fund the costs to undertake the fiscal analysis and legal and administrative procedures necessary to de-annex relevant parcels from the existing district through an amendment to the Meridian Revitalization Plan and establish a new urban renewal district. Galena also engaged and funded the services of architectural firm GGLO to lead the design of the Civic Block site and Community Center facility. An Executive Committee ("Committee")with participants from the City's Community Development, Parks and Recreation, and City Attorney Departments, MDC staff and legal counsel, as well as Galena and other consultants has been meeting on a weekly basis since the approval of Galena as the selected developer in order to advance these revitalization efforts.The two major tasks have been the creation of the new 16-acre Union District and ongoing site design of the Civic Block, where a new Community Center, residential and/or commercial uses, parking, and a plaza/open space are envisioned. (Civic Block Map: Attachment D) While Galena's initial proposal included a charter school and small auditorium,these uses present significant challenges, largely due to traffic impacts and parking constraints.Through discussions and the approved contingencies,the City and MDC reiterated the desire for revenue-generating and/or job- creating commercial uses. The Committee has been exploring complementary uses with the Community Center. Considerations include housing and commercial space. Office and/or retail space could be part of the Community Center structure or a second, stand-alone structure.There have been promising preliminary discussions with a few potential long-term tenants that would be mutually beneficial to the City, MDC as well as the tenant being located in the downtown area. Community Development Department Update The Committee has been working with other stakeholders (Meridian Library District, COMPASS/VRT, MDBA, and the Meridian Chamber of Commerce)throughout the process to keep them informed and solicit their feedback.This has helped in the approval process of the Union District and the height exception for the Union 93 project, as well as site design for the Civic Block, input regarding parking solutions,future public transit planning, and integrating the Meridian Library District's new unBound location into the overall Civic Block concept. The Community Development Department has been working with the Parks and Recreation Department to provide an operations pro forma to estimate operational costs as well as space planning to determine square footage requirements to create a quality community center that will meet the current and future needs of the community. 2 Meridian City Council Meeting Agenda July 21,2020— Page 8 of 16 Parks and Recreation Department Update Site visits have been conducted to learn from the operations at several existing facilities, such as the Barber Park Education & Event Center, BSU Event Services,JUMP, and the Nampa Civic Center. Online virtual tours were conducted this spring with three existing community centers in Utah to gather any lessons-learned.Virtual tours included community centers in Springville, Lehi and Draper, Utah. A project update was presented to the Parks and Recreation Commission on July 8, 2020.At this time, the Department is working to develop operational cost projections. (RFP Community Center Programming and Guidelines: Attachment E) Meridian Development Corporation Update With the approval of the Union District by the Meridian City Council on June 9, 2020 and the final transmittals to the appropriate agencies, including the Idaho State Tax Commission,the new urban renewal district is officially in place. With the creation of the district,this allows MDC to enter into a Development Agreement (DA) and/or Owner Participation Agreement(OPA)with the developer.The purpose of the agreement is to outline what site improvements would be reimbursed by MDC. In cases like this, reimbursement is generally provided through the tax increment that the project creates and is reimbursed as expenditures are documented and increment is received by MDC. In order to enter into an agreement,there are a number of items that need to be provided or completed including but not limited to: • An approved development plan providing specific project details and the appropriate approvals for the project. • A formal request by the developer outlining the site improvements they believe are in compliance with the urban renewal district's specific plan.This request is specific in nature and outlines the estimated costs per item as well as the timelines for completion. • Review of the request by the Meridian Development Corporation Board of Commissioners for discussion, potential negotiation, and a decision. The timing of an agreement will be dependent on the developer's ability to provide enough project specifics in order to generate an agreement. MDC is committed to working with the developer on an agreement that meets the vision and goals of the specific plan. Galena Opportunity Fund Update Galena is working with ACHD and Nampa-Meridian Irrigation District to explore moving the Hunter Lateral (see Civic Block Map: Attachment D) into the right-of-way along 3rd Street. Galena will be submitting an application to the Idaho Housing and Finance Association (IHFA) in early fall for consideration of funding to support affordable housing on the Civic Block site.There is a strong belief that the application has all the merits of a highly competitive project. Decisions on application awards 3 Meridian City Council Meeting Agenda July 21,2020— Page 9 of 16 will be made in late 2020. Last month,the City and MDC submitted a joint letter to IHFA supporting and demonstrating the need for affordable housing in the downtown area. Work with GGLO has paused until such time as the optimal site use mix and Community Center space needs have been determined. Challenges The Hunter Lateral bisects the Civic Block site, limiting the development of leasable building area. If relocating the Hunter Lateral into the 3rd Street right-of-way is not possible,the Committee will explore moving the southerly portion of the lateral to the west, providing approximately 5,000 square feet of additional structure footprint area. The current commercial real estate market is in flux due to the COVID-19 challenges and uncertainties. Many commercial developers of office and retail space, as well as potential tenants, have paused major financial long-term commitments. One option to be considered is phasing the project, leaving the existing Community Center in place until market conditions improve. 4 Meridian City Council Meeting Agenda July 21,2020— Page 10 of 16 1 1 ff• Il1111�� 111■ IIII■ 11111 ■11■ 1!� �� ffffff .. illllll ■1111 ■�I� !11 1: :1■■ ■�■1� ■ ■■ :� ■■ 11■!■11 ill�i 1■!I!1 111l: 111111 �111� ��■ �■ 11111 ■■ :111' 1111! ■■1111 �. • . ::1■: ;mill :1�l11 ■1111 ■11�11111 ffffff-� -:li■1 �� ■Ir � IffF ��II 11111 ■11■ !!1■ era �I�I 11! . 1 I!� ■■ ■ !! ■l1111 :111 11 ���� �= '■= III ■i �� ■� . JEW 4-�. I Aw ARM Bit. Y } f. - f ' JJW Ew- w Attachment B Timeline August 2019 RFP issued October 4, 2019 Proposals due. Proposal received from Galena Opportunity Fund October 8-15, 2019 Proposal Review Committee meetings October 22, 2019 In a joint session, City Council and MDC approved Review Committee selection of Galena and directed staff to proceed with negotiations using Committee's proposed contingencies November 2019 Analysis begins to determine eligibility and viability of a new downtown urban renewal district February 26, 2020 MDC accepted Eligibility Report for proposed new district and forwarded to City Council for consideration March 10, 2020 City Council approved Resolution No. 20-2188 accepting Eligibility Report and directing MDC to prepare First Amendment to the Meridian Revitalization Plan ("Amendment") and Urban Renewal Plan for the Union District Urban Renewal Project("Union District Plan") March 11, 2020 MDC reviewed draft Amendment and draft Union District Plan and transmitted to City March 17, 2020 City Council reviewed draft Amendment and draft Union District Plan March 25, 2020 MDC approved Amendment and Union District Plan and transmitted to City for approval April 16, 2020 Planning and Zoning Commission adopted Resolution No. 20-01, validating conformity of Plan Amendment and Resolution 20-02 validating conformity of Union District Plan with the City's Comprehensive Plan April 24, 2020 Required notices mailed to taxing districts. Public hearing notice posted in Meridian Press May 1, 2020 Public hearing notice posted in Idaho Statesman May 26, 2020 First reading of Ordinance 20-1881 to approve Amendment and Ordinance 20- 1882 to approve Union District Plan June 2, 2020 Second reading of Ordinance 20-1881 and Ordinance 20-1882 and opening of official public hearing June 9, 2020 Public hearing closed, final reading and approval of Ordinance 20-1881 adopting First Amendment to the Meridian Revitalization Plan and Ordinance 20-1882 approving Urban Renewal Plan for the Union District Urban Renewal Project July 8, 2020 Project update presented to Parks and Recreation Commission Fall 2020 Galena to submit Low Income Housing Tax Credit project application to Idaho Housing and Finance Association for 2021 funding allocation 6 Meridian City Council Meeting Agenda July 21,2020— Page 12 of 16 Attachment C Contingencies developed by RFP Review Committee, approved by City of Meridian and Meridian Development Corporation at October 22, 2019 joint meeting, and accepted by Galena Opportunity Fund Civic Block & Community Center RFP Review Committee Recommendation Contingencies The Committee recommends approval of the proposal with contingencies offered below. It is important to note that the development agreement with the respondent will place all of the risk on the developer whether the tax increment generated will be sufficient to cover reimbursement of the cost of the project and corresponding improvements. If the required contingencies are not met, the project will not move forward, and the City and MDC will not have expended any funds. • Developer shall provide an updated pro forma, subject to audit by an independent third party retained by the City/MDC. • Developer shall have secured bridge funding as well as a performance-based surety bond prior to construction and transfer of any property to ensure final delivery of Civic Block site. • The project should include office or other revenue-generating and/or job-creating commercial use(s) in lieu of the charter school. • The final project must include funded, adequate parking. Any off-site must meet a specified, approved, alternate location. • Developer shall cover all project design costs, up to and including construction documents, for all buildings, site improvements, parking, and required public infrastructure improvements. The Developer agreed to cover the costs associated with the creation of a new urban renewal district. • Project funding will be based on a tax increment financing (TIF) performance-based reimbursement model. Reimbursement is made upon successful completion of the improvements and only from a portion of the tax increment dollars received by MDC. • Any new Urban Renewal District(URD) must be approved, independent of any action related to the Civic Block project and prior to final negotiations for a detailed Civic Block Development Agreement. The creation of a new District is a public process and there is no commitment that it will be approved. If a new district is not approved, then the community center project does not move forward. • Developer shall cover any costs associated with de-annexation and creation of a new URD. • The final project must address the Guiding Principles and Basis for Selection criteria outlined in the RFP. • Developer agrees that its proposal will remain valid for sufficient time to allow for the decision whether to de-annex property from the current URD and create a new URD to be made and, if applicable, execution of a development agreement. 7 Meridian City Council Meeting Agenda July 21,2020— Page 13 of 16 Attachment D Existing Civic Block Aerial Map qr 174 . I �} E IDAHO AYE ti sting Existing �Communi Center ;: !� r; m r,.,7 7ty + Z x rX z C�M PASS r. w 0■ ■ '.� a Y \� � i t. ■♦ . . E BROADWAY AVE -A. hwav ` �, s Meridian City Council Meeting Agenda July 21,2020— Page 14 of 16 Attachment E Community Center Programming and Guidelines contained in the RFP, issued August 2019 Civic Block & Community Center RFP Community Center Programming and Guidelines The Vision: The new Meridian Community Center will be much more than just a place to attend a class or camp. The goal is to contribute to the quality of life and fill unmet needs of our community through quality activities and services that enhance the physical, mental and social well-being of our citizens, provide diverse recreational opportunities, and create lasting memories. We aim to accomplish these goals by providing classes, programs, and activities for children, teens, adults, seniors, and families together. We want to make the facility as self-sustaining as possible through revenue sources, such as rentable space for weddings, birthday parties, and business meetings. Also critical to our success is the development of partnerships with other non-profit and community organizations and businesses, as well as exemplary management of the center and its activities. Street Presence/Form/Materials: The Community Center will have a presence at street level, with a plaza for indoor/outdoor activities and events. The center may be multiple stories, but the ground floor should include a large gathering area/lobby for informal meetings, visiting, and hanging out with friends. Materials should be quality, long- lasting, durable, and low maintenance. We envision a significant amount glass at the both the storefront and upper levels for views. Community Center Uses: Use types for the Community Center will include multiple classes and camps for all ages, activity/play space, performances, banquets, weddings, birthday parties, fitness, and business/group meeting rooms. Some uses will be scheduled and reserved (i.e. classes, performances, weddings, etc.); others will be drop-in (lobby/activity space visitors). The facility will need to accommodate multiple user groups at the same time. Size: The minimum size of the Community Center is 17,000 s.f. The anticipated maximum size is 22,000 s.f. Actual size will depend on the form and function of the spaces as we work through design development with the successful respondent to the RFP. Funding: The Parks & Recreation Department anticipates contributing up to $3,850,000 for Community Center construction through impact fees, in addition to providing the land from the existing Community Center and Centennial Park to the overall project. [Note: The park space must be replaced in some fashion as part of the overall project, though the replacement may take on many forms, from the public plaza described for the front of the new Community Center, to offsite replacement in another location that serves downtown, or other ideas from the respondent.] 9 Meridian City Council Meeting Agenda July 21,2020— Page 15 of 16 Sample Building Program: Following is a sample program for the Community Center, subject to refinement as we work with the winning proposer: • Entry Plaza o Seating, Shade o Amenities/Art Lobby o Informal Gathering Space o Location for Coffee Kiosk Concession o Drop-in Activity Area ■ Pool/Foosball/Ping Pong o Play Space for Kids o Connect to Entry Plaza o Information desk with view of lobby and entrances • 1 Large Community Room. +/- 5,000 s.f. o For large gatherings, weddings, plays, performances, banquets, etc. o Divisible into thirds 2-3 Medium/Large Multi-Purpose Rooms. +/-900-1000 s.f. o For classes, parties, meetings, etc. • 2-3 Small Multi-Purpose Rooms. +/- 500-600 s.f. o For smaller classes, parties, meetings, etc. • 1-2 Conference Rooms. +/-300-500 s.f. o For business meetings, possible business incubator • Fitness/Yoga Room. +/-700-800 s.f. o For a variety of exercise classes • Kitchen o Definitely a Catering Kitchen for warming/serving. Maybe a Cooking Kitchen, TBD. o Common Service Area with access to kitchen area and large community room • Outdoor Patio o Connected to Community Room • Storage o Lots of it. Exact needs TBD during design development of the facility • Parking o Parking will be part of the parking planned for the overall development 10 Meridian City Council Meeting Agenda July 21,2020— Page 16 of 16 Meridian CDBG 1, 2020 TO SEPTEMBER 30, 2021OCTOBER Program The Action Plan identifies strategies to in the upcoming year.meet the goals of the Consolidated Plan Encouraged community involvement Public Hearing•Two (2) public presentations•Public comment period•Involvement with stakeholders•identified in Con Plan: Admin and Fair Housing Projects Streetlight modernization-Backup projects •W. Chief Joseph Streetlights•Year 2 of Fairview Ave. Sidewalk Connection•AccessibilityHome RepairOccupied -Owner-NeighborWor ks Boise •-Ada County Housing Authority •HousingScholarships for Youth-Boys and Girls Club •Emergency Rental Assistance-Jesse Tree •Public Services Excerpts from Public Jessica Peters, Citizen Ali Rabe, Jesse TreeBoiseNeighborWorksMichael Shepard, 03 up financially..."who may not be able to keep for folks in the community continue to provide support important than ever that we rising so much, it's more prices and cost of living are growing so quickly and home "At a time when our city is community."and homelessness in the working to prevent eviction resource for nonprofits "CDBG is an excellent 02 their homes in good repair."financial resources to make individuals do not have the Many of these repair.efficient and in good housing stock more energy help make the existing "The rehab completed will 01 Comments Received Updates to PY19 Pg. 23 Updated the summary of comments received.with.District Health to the list of groups consulted Included Unity Through Inclusion and Central Updated the summary of public comments.Pg. 16Pg. 2 Action Plan Updates to PY19 Pg. 44 hazards.based paint -description of actions to reduce leadIncluded coordination efforts with CDH to the maintain affordable housing.description of Meridian's efforts to foster and Owner Rehab program to the -Included the Homebenefitting from Accessibility Projects.Included an estimate of 2,000 households Pg. 43Pg. 34 Updates to PY19 Pg. 67 certifications.Included signed grant application documents and the Idaho Statesman and Meridian Press Tribune.Included copies of the public notices provided in that were received.Updated chart to include the public comments Pg. 64Pg. 48 Charlene Way From:Zach Clegg <zach@galenafund.com> Sent:Friday, January 08, 2021 2:11 PM To:City Clerk Subject:FW: Support for Meridian Civic Block Development Extension Attachments:GALENA_OPPORTUNITY_FUND_MOA_Suport_Letter.pdf External Sender - Please use caution with links or attachments. Please see the attached letter of support for Galena Opportunity Fund’s Request for Extension on the Civic Block Development Memorandum of Agreement. Thank you, Z ACH C LEGG Chief Operating Officer Mobile (208) 596-2161 Office (208) 844-7061 www.galenafund.com G ALENA O PPORTUNITY F UND Impact Investing, Development, Performance From: Nick Aldinger <nick@ibleventsinc.com> Sent: Friday, January 8, 2021 1:45 PM To: Zach Clegg <zach@galenafund.com> Subject: RE: Support for Meridian Civic Block Development Extension Zach, Attached is my letter of support. Please let me know if you need anything else. Regards, Nick Aldinger IBL Events 208.376.0464 (office) 208.870.8572 (direct) 1 This message (including any attachments) may contain confidential, proprietary, privileged and/or private information. The information is intended to be for the use of the individual or entity designated above. If you are not the intended recipient of this message, please notify the sender immediately, and delete the message and any attachments. Any disclosure, reproduction, distribution or other use of this message or any attachments by an individual or entity other than the intended recipient is prohibited. 2 EVENTS 01/08/2021 To Whom It May Concern: I am writing to express my support for Galena Opportunity Fund's request for extension on their Civic Block Development Memorandum of Agreement with the City of Meridian and Meridian Development Corp. The Galena Opportunity Fund's work with the Union 93 project and Civic Block site is critical to our long-term downtown success. Their continued community outreach and project transparency is another example on why I support this extension. I would appreciate your approval in extending their request. Sincerely, Nick Aldinger Co-owner &Vice President Idaho Business League Events, Inc. (dba IBL Events) RE: Support for Meridian Civic Block Development Extension 208.376.0464 nick@ ibleventsinc.com www.iblevents.com PO Box 415 Meridian, ID 83680 A Ryan Steinbroner 116 Broadway Ave. Meridian, Idaho 83642 January 11, 2021 City of Meridian 33 E Broadway Ave. Meridian, Idaho 83642 To whom it may concern: My name is Ryan Steinbroner. I am the sole member of 116 Broadway LLC. Owner of 116 Broadway Ave, 126 Broadway Ave, and 128 Broadway Ave. Meridian, Idaho 83642. 1 am writing to support the Galena Fund request for extension of Civic Block Development Memorandum of Agreement with the City of Meridian and Meridian Development Corp. Due to the unique circumstances of the pandemic in 2020 1 think it is best for all parties to allow an extension to get the design of this project completed the right way for Meridian. I'm still excited for this project and look forward to it coming to fruition. Sincerely, Ryan Steinbroner E IDIAN DAHO CITY COUNCIL Item 4: Executive Session per Idaho Code 74-206A (1)(a) To deliberate on a labor contract offer or to formulate a counteroffer; 74- 206 (1)(d) To Consider records that are exempt from disclosure as provided in chapter 1, title 74 of Idaho Code and 74-206(1)(f) To communicate with legal counsel for the public agency to discuss the legal ramifications of and legal o9ptions for pending litigation, or controversies not yet being litigated but imminently likely to be litigated. Into Executive Session: 5:21pm Out of Executive Session: 6:02pm Adjournment: 6:03pm Meeting Notes: Next Steps July 31 Submit to HUD•Resolution•Final Report•July 28 periodClose public comment ••July 21