To be replaced - Second Amended Downtown District Plan (Deannexation)SECOND AMENDMENT TO THE
MERIDIAN REVITALIZATION PLAN
URBAN RENEWAL PROJECT
MERIDIAN URBAN RENEWAL AGENCY
(also known as the Meridian Development Corporation)
CITY OF MERIDIAN, IDAHO
Ordinance No. 02-987
Adopted December 3, 2002
Effective December 2002, publication
First Amendment to the Plan
Ordinance No. 20-1881
Adopted June 9, 2020
Effective June 19, 2020, publication
Second Amendment to the Plan
Ordinance No.
Adopted , 2021
Effective , 2024, publication
SECOND AMENDMENT TO THE MERIDIAN REVITALIZATION PLAN URBAN
RENEWAL PROJECT- 1
BACKGROUND
This Second Amendment ("Second Amendment") to the Meridian Revitalization Plan
Urban Renewal Project (the "Plan") amends the Plan for the following purposes: (1) to deannex
approximately [77] acres (including right-of-way) generally bounded by Meridian Road on the
west and E. Fairview Avenue on the north. The eastern boundary extends south along what would
be E. 4ch Street if extended, over to 3rd Street. The southern boundary extends to E. Pine Avenue
between E. 3rd Street and E. 2nd Street, and then travels up E. 2nd Street and over E. Washington
Avenue to connect back to Meridian Road. This deannexation is from the plan area/revenue
allocation area created by the Plan commonly referred to as the "Downtown District Project Area,"
adopted by Meridian City Council Ordinance No. 02-987, on December 3, 2002, as amended by
the First Amendment to the Plan in 2020, which deannexed approximately 16 acres from the
Downtown District Project Area, as adopted by Meridian City Council Ordinance No. 20-1881,
on June 9, 2020 (the "First Amendment") ; and (2) to deannex approximately [1.46] acres
(including right-of-way) from the Downtown District Project Area, as amended by the First
Amendment, and generally bounded by E. Idaho Avenue on the north, E. 2nd Street on the east, a
portion of Broadway Avenue on the south, and E. Main Street on the west. The scope of this
Second Amendment is limited to addressing the deannexation of certain parcels from the
Downtown District Project Area, as amended by the First Amendment. It is important to note this
Second Amendment to the Plan does not extend the Plan's duration. The Plan terminates on
December 31, 2026; however, revenue allocation proceeds will be received in 2027 pursuant to
Idaho Code § 50-2905(7).
As a result of this second deannexation, in 2021 through the remaining years of the Plan,
the Urban Renewal Agency of the City of Meridian, Idaho, also known as the Meridian
Development Corporation (the "MDC") will cease receiving an allocation of revenues from the
deannexed parcels. The increment value of the parcels deannexed from the Downtown District
Project Area pursuant to this Second Amendment shall be included in the net taxable value of the
taxing district when calculating the subsequent property tax levies pursuant to section 63-803,
Idaho Code. The increment value shall also be included in subsequent notification of taxable value
for each taxing district pursuant to section 63-1312, Idaho Code, and subsequent certification of
actual and adjusted market values for each school district pursuant to section 63-315, Idaho Code.
The Ada County Assessor's Office maintains the value information, including the increment value,
if any, included on the new construction roll for new construction associated with the deannexed
parcels.
House Bill 606, effective July 1, 2016, amended the Local Economic Development Act,
Chapter 29, Title 50, Idaho Code, as amended (the "Act") firmly establishing "[f]or plans adopted
or modified prior to July 1, 2016, and for subsequent modifications of those urban renewal plans,
the value of the base assessment roll of property within the revenue allocation area shall be
determined as if the modification had not occurred." Idaho Code § 50-2903(4). Though the
provisions of Idaho Code § 50-2903A do not apply to the Plan, a plan amendment or modification
to accommodate a de -annexation in the revenue allocation area boundary is a specifically identified
exception to a base reset. Idaho Code § 50-2903A(1)(a)(iii). This highlights the legislative support
for these types of amendments.
SECOND AMENDMENT TO THE MERIDIAN REVITALIZATION PLAN URBAN
RENEWAL PROJECT- 2
AMENDMENTS TO THE PLAN
1. Definitions. Capitalized terms not otherwise defined herein shall have the respective
meanings ascribed to such terms in the Plan, as amended by the First Amendment to the Plan.
2. The following defined terms are amended throughout the Plan, as amended b. the
First Amendment to the Plan, as follows:
(a) Delete "Amended Project Area" and replace with "Second Amended
Project Area" except where specifically referenced in this Second Amendment.
(b) Delete references to "Attachment 5" and replace with "Attachment 5, as
supplemented by Attachments 5A and 5B" except where specifically referenced in this Second
Amendment.
3. Amendment to List of Attachments. The List of Attachments on page vi of the
Plan, as amended by the First Amendment to the Plan, is further amended by deleting the list of
attachments and replacing it as follows:
Attachment 1 Legal Description of the Project Area and Revenue
Allocation Area Boundaries
Attachment IA Legal Description of the Boundary of the Deannexed Area
Attachment 1 B Legal Description of the Boundaries of the 2021 Deannexed
Areas
Attachment 2 Project Area -Revenue Allocation Area Boundary Map
Attachment 2A Boundary Map of the Deannexed Area
Attachment 2B Boundary Maps of the 2021 Deannexed Areas
Attachment 3 Properties Which May be Acquired by the Agency
Attachment 4 Map Depicting Expected Land Uses and Current Zoning
Within the Second Amended Project Area
Attachment 5 Economic Feasibility Study, Meridian Urban Renewal Area
Attachment 5A Supplement to the Economic Feasibility Study: Financial
Analysis Related to the 2020 Deannexation
Attachment 5B Second Supplement to the Economic Feasibility Study:
Financial Analysis Related to the 2021 Deannexation
4. Amendment to Section 100 of the Plan, as amended by the First Amendment to the
Plan. Section 100, as amended by the First Amendment to the Plan, is amended by deleting the
list of attachments and replacing it as follows:
SECOND AMENDMENT TO THE MERIDIAN REVITALIZATION PLAN URBAN
RENEWAL PROJECT- 3
Legal Description of the Project Area and Revenue Allocation Area Boundaries
(Attachment 1);
Legal Description of the Boundary of the Deannexed Area (Attachment
IA);
Legal Description of the Boundaries of the 2021 Deannexed Areas
(Attachment 1B);
Project Area -Revenue Allocation Area Boundary Map (Attachment 2);
Boundary Map of the Deannexed Area (Attachment 2A);
Boundary Maps of the 2021 Deannexed Areas (Attachment 2B);
Properties Which May be Acquired by the Agency (Attachment 3);
Map Depicting Expected Land Uses and Current Zoning Within the Second
Amended Project Area (Attachment 4);
Economic Feasibility Study, Meridian Urban Renewal Area (Attachment 5);
Supplement to the Economic Feasibility Study: Financial Analysis Related
to the 2020 Deannexation (Attachment 5A);
Second Supplement to the Economic Feasibility Study: Financial Analysis
Related to the 2021 Deannexation (Attachment 5B).
Amendment to Section 102.1 of the Plan, as amended by the First Amendment to
the Plan.
(a) Section 102.1 entitled "CONFORMANCE WITH STATE OF IDAHO URBAN
RENEWAL LAW OF 1965, AS AMENDED" is amended by adding new paragraphs to the end
of the language added by the First Amendment to the Plan as follows:
Subsequent to the First Amendment, in 2021, the Agency and City
reviewed two additional areas for deannexation from the original
Project Area, as amended by the First Amendment, as follows:
approximately [77] acres (including right-of-way) generally
bounded by Meridian Road on the west and E. Fairview Avenue on
the north. The eastern boundary extends south along what would be
E. 4th Street if extended, over to 3rd Street. The southern boundary
extends to E. Pine Avenue between E. 3rd Street and E. 2nd Street,
and then travels up E. 2nd Street and over E. Washington Avenue to
connect back to Meridian Road; and approximately [1.46] acres
(including right-of-way) generally bounded by E. Idaho Avenue on
the north, E. 2nd Street on the east, a portion of Broadway Avenue
on the south, and E. Main Street on the west.
SECOND AMENDMENT TO THE MERIDIAN REVITALIZATION PLAN URBAN
RENEWAL PROJECT- 4
This Second Amendment to the Plan (the "Second Amendment")
deannexes certain parcels from the original Project Area, as
amended by the First Amendment, resulting in a "Second Amended
Project Area" as further described and shown in Attachments 1, 1A,
1B, 2, 2A, and 2B.
This Second Amendment was prepared and submitted to MDC for
its review and approval. MDC approved the Second Amendment
by the adoption of Resolution No. 21-023 on May 12, 2021 and
submitted the Second Amendment to the City Council with its
recommendation for adoption.
In accordance with the Law, this Second Amendment was submitted
to the Planning and Zoning Commission of the City of Meridian.
After consideration of the Second Amendment, the Commission
filed a Resolution dated , 2021, with the City Council
stating that the Second Amendment is in conformity with the
Comprehensive Plan for the City of Meridian, adopted on December
17, 2019, by Resolution No. 19-2179.
Pursuant to the Law, the City Council, having published due notice
thereof, held a public hearing on the Second Amendment. Notice of
the hearing was duly published in a newspaper having general
circulation in the City. The City Council adopted the Second
Amendment on , 2021, pursuant to Ordinance No.
6. Amendment to Section 200 of the Plan, as amended by the First Amendment to the
Plan.
(a) Section 200, as amended by the First Amendment to the Plan, entitled
"DESCRIPTION OF THE AMENDED PROJECT AREA" is deleted and replaced as follows:
DESCRIPTION OF THE SECOND AMENDED PROJECT
AREA
The boundaries of the Project Area and of the Revenue Allocation
Area are described in Attachment 1, which is attached hereto and
incorporated herein by reference, and are shown on the Project Area
and Revenue Allocation Area Boundary Map, attached hereto as
Attachment 2 and incorporated herein by reference. The Project
Area includes several parcels of property which are located outside
the geographical boundaries of the City but within the City's impact
area. MDC has an existing agreement with Ada County related to
such parcels. The First Amendment and the Second Amendment
have no impact on that agreement.
SECOND AMENDMENT TO THE MERIDIAN REVITALIZATION PLAN URBAN
RENEWAL PROJECT- 5
Pursuant to the First Amendment, the boundaries of the deannexed
area are described in the Legal Description of the Boundary of the
Deannexed Area in Attachment IA and are shown on the Boundary
Map of the Deannexed Area in Attachment 2A.
Pursuant to the Second Amendment, the boundaries of the
deannexed areas are described in the Legal Description of the
Boundaries of the 2021 Deannexed Areas in Attachment 1 B and are
shown on the Boundary Maps of the 2021 Deannexed Areas in
Attachment 2B.
The attachments referenced above are attached hereto and are
incorporated herein by reference.
7. Amendment to Section 302 of the Plan, as amended by the First Amendment to the
Plan.
(a) Section 302, as amended by the First Amendment to the Plan, is further amended
by deleting the first sentence of the second paragraph and replacing it as follows:
The Second Amended Project Area includes the area as described in
Section 200.
8. Amendment to Section 504 of the Plan, as amended by the First Amendment to the
Plan.
(a) Section 504, as amended by the First Amendment to the Plan, is further amended
by deleting the second sentence of the first paragraph and replacing it as follows: Revenue
allocation financing authority for the deannexed parcels pursuant to the First Amendment was
terminated effective January 1, 2020, and revenue allocation financing authority for the deannexed
parcels pursuant to the Second Amendment will be terminated effective January 1, 2021.
(b) Section 504, as amended by the First Amendment to the Plan, is further amended
by deleting the last sentence of the fourth paragraph and replacing it as follows: No modifications
to the analysis set forth in Attachment 5 have been made as a result of the First Amendment or the
Second Amendment. The estimated financial impact to the MDC as a result of the deannexation
of certain underdeveloped parcels from the original Project Area pursuant to the First Amendment
is set forth in Attachment 5A. The estimated financial impact to the MDC as a result of the 2021
deannexation of certain parcels from the Amended Project Area pursuant to the Second
Amendment is set forth in Attachment 5B.
9. Amendment to Section 504.1 of the Plan, as amended by the First Amendment to
the Plan_
(a) Section 504. 1, as amended by the First Amendment to the Plan, is further amended
by deleting the last sentence at the end of the paragraph and replacing it as follows: No
modifications to the Study have been made as a result of the First Amendment or this Second
Amendment; however, Attachment 5A includes the estimated financial impact to the MDC
SECOND AMENDMENT TO THE MERIDIAN REVITALIZATION PLAN URBAN
RENEWAL PROJECT- 6
prepared by Kushlan I Associates and SMR Development, LLC as a result of the first deannexation
of certain underdeveloped parcels from the original Project Area pursuant to the First Amendment,
and Attachment 5B includes the estimated financial impact to the MDC prepared by Kushlan
Associates as a result of the second deannexation of certain parcels from the original Project Area,
as amended by the First Amendment, pursuant to the Second Amendment.
10. Amendment to Section 504.3 of the Plan, as amended by the First Amendment to
the Plan.
(a) Section 504.3, as amended by the First Amendment to the Plan, is further amended
by deleting the sentence at the end of the paragraph and replacing it as follows: The deannexation
of parcels from the original Project Area pursuant to the First Amendment and the Second
Amendment does not substantively change this analysis. As a result of the deannexations, the base
assessment roll value will decrease.
11. Amendment to Section 504.4 of the Plan. as amended by the First Amendment to the Plan.
(a) Section 504.4, as amended by the First Amendment to the Plan, is further amended
by deleting the sentence at the end of the second paragraph and replacing it as follows: The
deannexation of parcels from the original Project Area pursuant to the First Amendment reduced
the amount of revenue generated by revenue allocation as set forth in Attachment 5A. The
deannexation of parcels from the original Project Area pursuant to this Second Amendment is
estimated to reduce the amount of revenue generated by revenue allocation as set forth in
Attachment 5B.
(b) Section 504.4, as amended by the First Amendment to the Plan, is further amended
by adding a new sentence at the end of the third paragraph as follows: Attachment 513 includes the
estimated financial impact to the MDC as a result of the second deannexation of certain parcels
from the original Project Area, as amended by the First Amendment to the Plan. Based on the
findings set forth in Attachment 5B, the conclusion is the second deannexation of certain parcels
from the original Project Area, as amended by the First Amendment to the Plan, does not materially
reduce revenue allocation and the Project continues to be feasible.
12. Amendment to Section 800 of the Plan, as amended by the First Amendment to
the Plan.
(a) Section 800, as amended by the First Amendment to the Plan, is further amended
by adding a new sentence at the end of the first paragraph as follows: The deannexation of parcels
from the original Project Area, as amended by the First Amendment, pursuant to this Second
Amendment has no impact on the duration of this Plan.
13. Amendment to Plan, as amended by the First Amendment to the Plan. to add new
Attachment 1B. The Plan, as amended by the First Amendment to the Plan, is further amended to
add new Attachment 1B entitled "Legal Description of the Boundaries of the 2021 Deannexed
Areas," attached hereto.
SECOND AMENDMENT TO THE MERIDIAN REVITALIZATION PLAN URBAN
RENEWAL PROJECT- 7
14. Amendment to Plan. as amended by the First Amendment to the Plan. to add new
Attachment 2B. The Plan, as amended by the First Amendment to the Plan, is further amended to
add new Attachment 2B entitled "Boundary Maps of the 2021 Deannexed Areas," attached hereto.
15. Amendment to Plan, as amended by the First Amendment to the Plan, to add new
Attachment 5B. The Plan, as amended by the First Amendment to the Plan, is further amended to
add new Attachment 5B entitled "Second Supplement to the Economic Feasibility Study: Financial
Analysis Related to the 2021 Deannexation," attached hereto.
16. Downtown District Plan, as amended by the First Amendment to the Plan, Remains
in Effect. Except as expressly modified in this Second Amendment, the Plan and the Attachments
thereto, as amended by the First Amendment to the Plan, remain in full force and effect.
SECOND AMENDMENT TO THE MERIDIAN REVITALIZATION PLAN URBAN
RENEWAL PROJECT- 8
Attachment 1 B
Legal Description of the Boundaries of the 2021 Deannexed Areas
[To Be Inserted Upon Completion]
Attachment 2B
Boundary Maps of the 2021 Deannexed Areas
[To Be Inserted Upon Completion]
[Non -Surveyed Maps Attached]
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the data provided, and assumes no legal responsibility for the information contained on this map. ��
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Attachment 5B
Second Supplement to the Economic Feasibility Study:
Financial Analysis Related to the 2021 Deannexation
4851-4344-7734, v. 3
Attachment 56
Memo to: Meridian Development Corporation Board of Commissioners
Ashley Squyres, MDC Administrator
Meghan Conrad, Counsel
From: Phil Kushlan, Principal, Kushlan I Associates
Subject: Fiscal Impact of de -annexation
Date: April 28, 2021
We have been retained to analyze the fiscal impact of removing two distinct geographic areas
from the existing Meridian Revitalization Plan Urban Renewal Project Area, also referred to as
the Downtown District. The first area is generally bounded by Meridian Road on the west and
E. Fairview Avenue on the north. The eastern boundary extends south along what would be E.
4th Street if extended, over to 3rd Street. The southern boundary extends to E. Pine Avenue
between E. 3rd Street and E. 2nd Street, and then travels up E. 2nd Street and over E. Washington
Avenue to connect back to Meridian Road. This area is generally referred to as the "Northern
Gateway Area." The purpose of the de -annexation of the Northern Gateway Area would be to
allow the inclusion of these properties into a proposed Northern Gateway Urban Renewal
District.
The second area is generally bounded by E. Idaho Avenue on the north, E. 2nd Street on the
east, a portion of Broadway Avenue on the south, and E. Main Street on the west. This area is
generally referred to as the "Idaho Block." The purpose of the de -annexation of the Idaho Block
would be to allow the inclusion of this block into a proposed amendment to the existing Union
District Project Area.
Removing taxable properties from a revenue allocation area, as suggested here, would release
the incremental value of those tax parcels back to the general property tax rolls thus
eliminating the revenue currently generated by the existing district from those properties. In
making a decision on the de -annexation question one must understand the fiscal impact upon
the existing Downtown District in the context of that District's ongoing financial obligations.
Our study has done that.
In our analysis of the Northern Gateway Area, we reviewed each of the 133 tax parcels that are
currently within the boundaries of the existing Downtown District that are to be deannexed. In
each case we segregated the base value from the incremental value and calculated the revenue
generated by each factor. From that analysis, we demonstrated that the 133 parcels generated
a total of $379,648 in property taxes in 2020, the latest year for which we have certified values
and tax yields. Of that amount $162,121 was generated from the Base Assessed Value and
1
allocated to the various taxing entities levying property taxes within the Downtown District.
The Incremental Values on those properties generated $217,526 in 2020, which was allocated
to the Urban Renewal Agency of the City of Meridian, Idaho, also known as the Meridian
Development Corporation (MDC). This latter number is the estimated amount of foregone
revenue that the Downtown District will experience annually though the de -annexation of
these tax parcels, from calendar year 2022, through calendar year 2027, the termination year of
the Downtown District.
In our analysis of the Idaho Block we reviewed ten (10) tax parcels in a similar manner as the
process described above. Those parcels produced a total of $28,434 in property tax payments
in 2020. Of that amount $15,371 was generated from the Base Assessed Value and thus
allocated to the taxing entities. The remainder ($13,063) was allocated to MDC and represents
the annual foregone amount upon deannexation of these parcels from the Downtown District.
The MDC Annual Financial Statements indicated that the incremental revenue generated by the
Downtown District in 2020 was $1,610,499. A reduction of $217,526 from the Northern
Gateway Area would be a 13.5% reduction in annual revenue. A reduction of $13,063 from the
Idaho Block would be a 0.81% reduction in annual revenue. In addition, we reviewed the
Financial Statements for FY 2014, 2015, 2016, 2017, 2018 and 2019. See attached spreadsheet
for details. In each of those fiscal years the fiscal results of MDC activities reflected significant
Fund Balances. The audited Fund Balance for FY 2020 was $3,750,449. If the $217,526 and
$13,063 reductions had been in place in 2020, the Agency would have experienced a 14.32%
reduction ($230, 589) in annual revenue for the Downtown District. The Debt Service
commitments for the District are relatively small when compared to its overall fiscal strength.
The 2020 Debt Service Principal amount was $115,520 and the Interest amount was $8,097.
The Agency's 2021 Budget reflected a conservative approach to revenue, appropriating only
$1,600,000 in current property tax revenue. Undefined "Special Project" funding was set at
$1,179,598 in the 2021 Budget and $1,700,000 was assigned to the Nine -Mile Floodplain
project. The Staff and Commission should use their discretion is weighing the importance of
the current program funding levels versus the importance of including these parcels in a new
Revenue Allocation Area. It appears as though there is sufficient capacity in the fiscal program
of the Downtown District to accommodate this loss of revenue should the MDC and City
Council choose to do so.
2
Beginning Fund Balance
Downtown District Revenue Allocation Income
Other Available Income
Total Available Current Income
Total Availalble Resources
Office and Operating Expenses
Professional Services
Public Education and Marketing
Debt Service
Principal
Interst
Capital Outlay
Total Expenditures
Ending Fund Balance
NEW9 Fy 202Q�
$ 790,596 $ 728,099 $ 619,459 $ 928,551 $ 1,463,391 $ 2,035,561 $ 2,601,567
$ 693,754 $ 847,571 $ 887,546 $ 1,075,786 $ 1,392,019 $ 1,499,374 $ 1,610,499
$ 11,078 $ 629 $ 8,021 $ 46,856 $ 40,326 $ 792,265 $ 193,450
$ 704,832 $ 848,200 $ 895,567 $ 1,122,642 $ 1,432,345 $ 2,291,639 $ 1,803,949
$ 1,495,428 $ 1,576,299 $ 1,515,026 $ 2,051,193 $ 2,895,736 $ 4,327,200 $ 4,405,516
$ 403,727 $ 498,748 $ 283,447 $ 263,808 $ 557,755 $ 838,079 $ 332,165
$ 189,596 $ 177,119 $ 170,758 $ 180,198 $ 177,586 $ 188,087 $ 186,657
$ 19,793 $ 24,951 $ 6,338 $ 19,671 $ 1,215 $ 8,563 $ 12,628
$ 99,213 $ 95,269 $ 99,145 $ 103,527 $ 107,685 $ 111,519 $ 115,520
$ 36,019 $ 29,565 $ 25,687 $ 20,598 $ 15,934 $ 12,100 $ 8,097
$ 18,981 $ 131,188 $ 1,100 $ - $ - $ 567,285 $ -
$ 767,329 $ 956,840 $ 586,475 $ 587,802 $ 860,175 $ 1,725,633 $ 655,067
$ 728,099 $ 619,459 $ 928,551 $ 1,463,391 $ 2,035,561 $ 2,601,567 $ 3,750,449
De -annexation Revenue Reduction in Dollars $ 230,589
Total Revenue Impact of De -annexation % 6.15%
Net after De -annexation Reduction $ 3,519,860