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To be replaced - Second Amendment to the Meridian Revitalization Plan FINAL.Rev5.28.21SECOND AMENDMENT TO THE MERIDIAN REVITALIZATION PLAN URBAN RENEWAL PROJECT- 1 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 ___________, 2021, publication SECOND AMENDMENT TO THE MERIDIAN REVITALIZATION PLAN URBAN RENEWAL PROJECT- 2 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. 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 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- 3 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 by 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 1A Legal Description of the Boundary of the Deannexed Area Attachment 1B 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- 4 Legal Description of the Project Area and Revenue Allocation Area Boundaries (Attachment 1); Legal Description of the Boundary of the Deannexed Area (Attachment 1A); 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). 5 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- 5 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- 6 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 1A 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 1B 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- 7 prepared by Kushlan | 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 5B 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- 8 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. Attachment 1B Legal Description of the Boundaries of the 2021 Deannexed Areas [Legal Description of Remaining Deannxed Areas To Be Inserted Upon Completion] EXHIBIT A URBAN RENEWAL DISTRICT BOUNDARY DESCRIPTION FOR MERIDIAN DEVELOPMENT CORPORATION IDAHO BLOCK A description for Urban Renewal District purposes located in the NW 1/4 of the SW 1/4 of Section 7, Township 3 North, Range 1 East, Boise Meridian, and being a part of Block 4 of the amended plat of the TOWNSITE OF MERIDIAN as found in Book 1 of plats at Page 30 in the office of the Recorder, Ada County, Idaho, more particularly described as follows: Commencing at a 5/8 inch diameter iron pin marking the intersection of N Main Street and E Idaho Avenue, from which a brass cap monument marking the intersection of NE 2nd Street and E Idaho Avenue bears S 88°43'59" E a distance of 380.05 feet; Thence S 88°43'59" E along the centerline of said E Idaho Avenue a distance of 40.00 feet to the POINT OF BEGINNING; Thence continuing S 88°43'59" E a distance of 300.04 feet to a point on an extension of the easterly boundary of said Block 4; Thence leaving said centerline S 0°31'47" W a distance of 40.00 feet to a point marking the northeasterly corner of said Block 4; Thence continuing S 0°31'47" W along said easterly boundary a distance of 256.13 feet to a point marking the southeasterly corner of said Block 4; Thence N 88°44'00" W along the southerly boundary of said Block 4 a distance of 90.05 feet to a point marking the southwesterly corner of Lot 8 of said Block 4; Thence leaving said southerly boundary N 0°32'12" E along the westerly boundary of said Lot 8 a distance of 120.07 feet to a point marking the northwesterly corner of said Lot 8; Thence N 88°43'59" W along the northerly boundary of Lots 1 - 7 of said Block 4 a distance of 210.08 feet to a point on the westerly boundary of said Block 4, said point being the northwesterly corner of Lot 1 of said Block 4; Thence N 0°33'09" E along said westerly boundary a distance of 136.07 feet to a point marking the northwesterly corner of said Block 4; Page 1 of 2 Thence continuing N 0°33'09" E on an extension of said westerly boundary a distance of 40.00 feet to the POINT OF BEGINNING. This parcel contains approximately 1.461 acres. NOTE: This description was prepared using record information including Record of Surveys, Subdivision Plats and Deeds acquired from the Ada County Recorder's office. No field survey has been performed. Prepared by: Kyle A. Koomler, PLS Civil Survey Consultants, Incorporated May 26, 2021 £1878 otc 33 Page 2 of 2 EXHIBITA DE -ANNEXATION BOUNDARY DESCRIPTION FOR MERIDIAN DEVELOPMENT CORPORATION NORTHERN GATEWAY A description for De -Annexation purposes located in the NE 1/4 of the NE 1/4 of Section 12, Township 3 North, Range 1 West, also being in the NW 1/4 of Section 7, and in the N 1/2 of the SW 1/4 of Section 7, Township 3 North, Range 1 East, Boise Meridian, Ada County, Idaho, more particularly described as follows: Commencing at a brass cap monument marking the northeasterly corner of said NW 1/4 of Section 7, from which a brass cap monument marking the northwesterly corner of said Section 7 bears S 88"35'17" W a distance of 2404.78 feet; Thence S 88"35'17" W along the northerly boundary of said Section 7 a distance of 630.19 feet to the POINT OF BEGINNING; Thence continuing S 88"35'17" W a distance of 1774.59 feet to a point marking the northwesterly corner of said Section 7; Thence leaving said northerly boundary N 89°26'54" W along the northerly boundary of said NE 1/4 of the NE 1/4 a distance of 357.11 feet to a point; Thence leaving said northerly boundary 5 0"33'06" W a distance of 57.00 feet to a point on the southerly right-of-way of W Cherry Lane; Thence along said southerly right-of-way the following described courses Thence 5 62°43'15" E a distance of 12.62 feet to a point on the westerly right-of-way of NW 1st Street; Thence leaving said westerly right-of-way S 86'48'50" E a distance of 60.07 feet to a point on the easterly right-of-way of NW 1st Street; Thence leaving said easterly right-of-way N 66"24'13" E a distance of 12.07 feet to a point; Thence S 89"26'54" E a distance of 182.01 feet to a point; Page 1 of 6 Thence S 45'34'48" E a distance of 41.81 feet to a point on the westerly right-of-way of N Meridian Road; Thence leaving said southerly right-of-way and along said westerly right-of-way the following described courses: Thence S 3"25'19" E a distance of 81.40 feet to a point; Thence S 0"23'29" W a distance of 119.26 feet to a point; Thence leaving said westerly right-of-way S 89°3631" E a distance of 57.50 feet to a point on the westerly boundary of said NW 1/4 of Section 7; Thence N 0'23'29" E along said westerly boundary a distance of 9.32 feet to a point on the extension of the northerly boundary of PARCEL A as shown on Record of Survey No. 10448, Instrument No. 2016-028560, found in said office of the Recorder; Thence N 89'36'58" E along said extension a distance of 46.00 feet to a point marking the northwesterly corner of said PARCEL A; Thence continuing N 89'36'58" E along the northerly boundary of said PARCEL A a distance of 194.02 feet to a point marking the northeasterly corner of said PARCEL A; Thence S 0'23'29" W along the easterly boundaries of said PARCEL A and of PARCEL 8 of said Record of Survey No. 10448 a distance of 233.00 feet to a point marking the southeasterly corner of said PARCEL 8; Thence S 89'36'58" W along the southerly boundary of said PARCEL 8 a distance of 50.01 feet to a point; Thence leaving said southerly boundary 5 0'23'29" W a distance of 106.39 feet to a point; Thence S 89"36'05" W a distance of 150.01 feet to a point on the easterly right-of-way of N Meridian Road; Thence along said right-of-way the following described courses: Thence 5 0"23'29" W a distance of 1015.39 feet to a point; Thence S 23'44'59" E a distance of 9.44 feet to a point on the northerly right-of-way of E Washington Street; Page 2 of 6 Thence leaving said easterly right-of-way N 89"36'04" E along said northerly right-of-way a distance of 440.45 feet to a point on the westerly right-of-way of N Main Street; Thence leaving said northerly right-of-way N 0"33'24" E along said westerly right-of-way a distance of 256.24 feet to a point on the extension of the northerly boundary of that PARCEL as shown on Record of Survey No. 1171, Instrument No. 8761859, found in said office of the Recorder; Thence leaving said westerly right-of-way N 89`58'13" E along said extension a distance of 80.00 feet to a point marking the northwesterly corner of said PARCEL; Thence continuing N 89"58'13" E along the northerly boundary of said PARCEL a distance of 249.98 feet to a point marking the northeasterly corner of said PARCEL, said point being the northwesterly corner of SCHOOL PLAZA SUBDIVISION NO. 1 as found in Book 64 of plats at Pages 6501-6502 in said office of the Recorder; Thence along the easterly boundary of said PARCEL and the westerly boundary of said SCHOOL PLAZA SUBDIVISION NO. 1 the following described courses: Thence S 0"33'24" W a distance of 290.72 feet to a point; Thence N 89"26'36" W a distance of 37.00 feet to a point; Thence S 0`33'24" W a distance of 280.00 feet to a point marking the southeasterly corner of said PARCEL and marking the southwesterly corner of said SCHOOL PLAZA SUBDIVISION NO. 1; Thence leaving said boundaries S 0"33'24" W along an extension of said boundaries a distance of 60.01 feet to a point on the northerly boundary of Block 5 of FA NOURSES SECOND ADDITION as found in Book 2 of plats at Page 64 in said office of the Recorder; Thence leaving said extension N 89"35'47" E along said northerly boundary a distance of 87.19 feet to a point marking the northeasterly corner of said Block 5; Thence S 0`31'57" W along the easterly boundary of said Block 5 a distance of 255.99 feet to a point marking the southeasterly corner of said Block 5; Thence continuing S 0`31'57" W a distance of 80.01 feet to a point marking the northeasterly corner of Block 2 of said FA NOURSES SECOND ADDITION; Page 3 of 6 Thence continuing S 0'31'57" W along the easterly boundary of said Block 2 a distance of 256.02 feet to a point marking the southeasterly corner of said Block 2; Thence S 0°32'08" W a distance of 80.01 feet to a point on the southerly right-of-way of E Pine Avenue as shown on Record of Survey No. 11653, Instrument No. 2018-119154, found in said office of the Recorder; Thence along said southerly right-of-way the following described courses: Thence N 89'35'22" E a distance of 80.01 feet to a point marking the northwesterly corner of that right-of-way vacated to adjoining owners, as described in Instrument No. 98218, of Block 7 of the amended plat of the TOWNSITE OF MERIDIAN as found in Book 1 of plats at Page 30 in said office of the Recorder; Thence continuing N 89`35'22" E a distance of 308.78 feet to a point marking the northeasterly corner of said vacated right-of-way of Block 1 of the amended plat of ROWAN ADDITION as found in Book 2 of plats at Page 52 in said office of the Recorder; Thence continuing N 89'35'22" E a distance of 80.04 feet to a point marking the northwesterly corner of said vacated right-of-way of Bock 6 of said amended plat of ROWAN ADDITION; Thence leaving said southerly right-of-way N 0'58'55" E a distance of 80.02 feet to a point marking the southwesterly corner of Block 3 of COTTAGE HOMEADDITION as found in Book 1 of plats at Page 42 in said office of the Recorder; Thence N 0"37'13" E along the westerly boundary of said Block 3 a distance of 256.03 feet to a point marking the northwesterly corner of said Block 3; Thence continuing N 0'37'13" E a distance of 80.01 feet to a point marking the southwesterly corner of Block 6 of said COTTAGE HOMEADDITION; Thence continuing N 0`37'13" E along the westerly boundary of said Block 6 a distance of 255.93 feet to a point marking the northwesterly corner of said Block 6; Thence N 89"35'47" E along the northerly boundary of said Block 6 a distance of 299.64 feet to a point marking the northeasterly corner of said Block 6; Thence continuing N 89'35'47" E a distance of 99.67 feet to a point the northwesterly corner of Lot 1 of Block 1 of EASTSIDE PARKSUBDIVISION as found in Book 20 of plats at Pages 1312 — 1313 in said office of the Recorder; Page 4 of 6 Thence continuing N 89`35'47" E along the northerly boundary of said Lot 1 a distance of 12.32 feet to a point on an extension of the easterly boundary of Lot 1 of Block 3 of said EASTSIDE PARK SUBDIVISION, Thence leaving said northerly boundary N 0`34'47" E a distance of 60.01 feet to the southeasterly corner of said Lot 1 of Block 3; Thence S 89'35'47" W along the southerly boundary of said Lot 1 a distance of 71.98 feet to the southwesterly corner of said Lot 1; Thence N 0"35'03" E along the westerly boundary of said Lot 1 a distance of 120.38 feet to the northwesterly corner of said Lot 1; Thence N 89"35'47" E along the northerly boundary of said Lot 1 a distance of 11.00 feet to a point; Thence leaving said northerly boundary N 0`35'00" E a distance of 120.38 feet to a point on the northerly boundary of said Block 3; Thence N 89'35'47" E along said northerly boundary a distance of 10.60 feet to a point on the extension of the easterly right-of-way of NE 4th Street; Thence leaving said northerly boundary N 0`34'47" E along said extension a distance of 30.00 feet to a point on the centerline of E Washington Avenue; Thence leaving said extension S 89"35'47" W along said centerline a distance of 30.00 feet to a point marking the intersection of said E Washington Avenue and NE 4th Street; Thence leaving said centerline of E Washington Avenue N 0"3447" E along the centerline of said NE 4th Street a distance of 731.98 feet to a point marking the intersection of said NE 4th Street and E Badley Avenue; Thence leaving said centerline of NE 4th Street and continuing N 0"34'47" E along an extension of said centerline of NE 4th Street a distance of 30.00 feet to a point on the southerly boundary of that PARCEL as shown on Record of Survey No. 10184, Instrument No. 2015-067809, found in said office of the Recorder; Thence leaving said extension S 89'32'57" E along said southerly boundary a distance of 102.03 feet to a point marking the southeasterly corner of said PARCEL; Page 5 of 6 Thence N 0'35'00" E along the easterly boundary of said PARCEL a distance of 912.62 feet to a point on the southerly right-of-way of E Fairview Avenue; Thence leaving said easterly boundary and continuing N 0"35'00" E along an extension of said easterly boundary a distance of 47.50 feet to the POINT OF BEGINNING. This parcel contains approximately 77.090 acres. NOTE: This description was prepared using record information including Record of Surveys, Subdivision Plats and Deeds acquired from the Ada County Recorder's office. No Feld survey has been performed. Prepared by: Kyle A. Koomler, PLS Civil Survey Consultants, Incorporated June 8, 2021 Page 6 of 6 Attachment 2B Boundary Maps of the 2021 Deannexed Areas [To Be Inserted Upon Completion] [Non-Surveyed Maps Attached] EXHIBIT B SKETCH TO ACCOMPANY URBAN RENEWAL DISTRICT DESCRIPTION FOR MERIDIAN DEVELOPMENT CORPORATION LOCATED IN THE NW 1/4 OF THE SW 1/4 OF SECTION 7, TOWNSHIP J NORTH, RANGE 1 EAST, BOISE MERIDIAN, ADA COUNTY, IDAHO E IDAHO AVENUE BASIS OF BEARING S 88-4/59" E 580.05' POINT OF BEGINNING Q- v§ 40.00'18'43 ‘59" E 300.04'40.00 '$\o' X No SoN §•. 'OoUj\Cjo3 \-Q o oo51O' X (o ^1-S'fc ►n O'fc'O ^ aS\ft\\5 -.‘o Si$N 88'4359" W 2W.08 ‘.ALL o5 9011g360.02'30.01 ’9 120.05 ’\\N tNO g ^au>N 9 ^1^O o99a9 \rv\ O' 5 "N 9 940'X\\ /O.Q2‘/\40.0/s\20.0l ‘ N 88‘44'00" W 90.05' 40 \ § 'h S 88'44 ’00" E 380.18'6- E BROADWAY AVENUE LEGEND URD BOUNDARY \c-' URD AREA '18780 p tEsj of '?yS CIVIL SURVEY CONSULTANTS, INC. 2893 SOUTH MERIDIAN ROAD MERIDIAN, IDAHO 83642 (208)888-4312 4. K00 SCALE: / ”=60 ’ EXHIBIT B SKETCH TO ACCOMPANY DE -ANNEXATION DESCRIPTION FOR MERIDIAN DEIIELOPMENT CORPORATION LOCATED IN THE NE 114 OF THE NE 1/4 OF SECTION 12, TOWNSHIP 3 NORTH, RANGE 1 WEST, ALSO BEING IN THE NW 114 OF SECTION 7, AND IN THE N 112 OF THE SW 114 OF SECTION 7 TOWNSHIP 3 NORTH, RANGE 1 EAST, BOISE MERIDIAN, ADA COUNTY, IDAHO LEGEND URD BOUNDARY mDE-ANNEXAT/ON AREA �114 S 89'2654" E 2655.27' W CHERRY LANE BASIS OF BEARING 1�4 1 , 6 S 68'35'17" W 2404.78' SEE SHEET 2 OF 3 h E OF3 ry N W W n � M h 2 0 0 = S SHEET 3 OF 3 � 1 0 1C 114 N 69'3522 E 2394.97' �A E PINE AVENUE CIVIL SURVEY CONSULTANTS, INC. 2893 SOUTH MERIDIAN ROAD MERIDIAN, IDAHO 83642 (208)888-4312 SCALE 1 "=1000' SHEET 1 OF 3 EXHIBIT B (CONTINUED) N MERIDIAN ROAO SCALE. 1 "=300' 114 N 0'2329" E 2652. 11' LEGEND s 0o'�'JZ$,"� j � W 'S u -� . URO BOUNDARY v2 QI o Wryg ti 2aa DE -ANNEXATION AREA u� 2 Wm W W 3` N AWN SIFEET 50.00' ^ y LA a Mp S m h 0 G I J40.01' BO.O7L-18 /I . 5OW' W 231870 f Q" I ' nnL0-1164 Wry = - 7 L tor \ F Kp) n WI NE 2ND 1/2 STR a J � W Q N W a 0.04' Nn'T71T� r 59f. B y 25 3' rr01' 25 93' Y I ryl I � W N NE 47N STREET L-22 L-24 E 4 STREET 12. L- m � L 21 Ze I L-20 — 0 2 e � NE 57N STREET �I E 57N S EE/ LINE DATA LINE I BEARING I DISTANCE I Q 3 L-75 S 234459" E 9.44' L-18 N 89'26'36" W 3Z00• -� — W L-17 N 8935'47" E 8Z 19' W L-19 N O'5855" E 60. 02' C 114 N O'3447" E 2594,26' L-20 N 0'34'47" W 60.01' L-21 5 89'3547" W 71.98• L-22 N 0'35'03" E 120.38' CIVIL SURVEY CONSULTANTS, INC. L-23 N B9'35'47" E 71.00, 2893 SOUTH MERIDIAN ROAD L-24 N 0'35.00" E 120.38MERIDIAN, IDAHO 83642 L-25 N 89'J5'47" E )0.60• (208W8-4312 L-26 N o'J4.47" E 30.00• SHEET 3 OF 3 L-27 S B9'35'47" wi 0.00' Meridian Urban Renewal #1 Legend Northern Gateway Existing URD City Limits Parcels Future Road Northern Gateway 0 1,000500 Feet [ The information shown on this map is compiled from various sources and is subject to constant revision. The City of Meridian makes no warranty or guarantee as to the content, accuracy, timeliness, or completeness of any of the data provided, and assumes no legal responsibility for the information contained on this map. Print Date: 4/27/2021 | User: bmcclure Meridian Urban Renewal #1 3rd3rd4th2ndBadleyMaple CathyMainGruber 3rdCarlton JanieInezCherry Carlton Washington Main5thWashington1st4th 3rdElm 2 And A Half2ndState MapleCreekCamelliaMidtownCherry MeridianPine Fairview Meridian Urban Renewal #1 Union District Idaho BroadwayMain 2ndLegend Idaho Block Existing URD Parcels Idaho Block 0 100 200 30050 Feet [ The information shown on this map is compiled from various sources and is subject to constant revision. The City of Meridian makes no warranty or guarantee as to the content, accuracy, timeliness, or completeness of any of the data provided, and assumes no legal responsibility for the information contained on this map. Print Date: 4/30/2021 | User: bmcclure Meridian Urban Renewal #1 Union DistrictMain2ndIdaho BroadwayBroadway Idaho Attachment 5B Second Supplement to the Economic Feasibility Study: Financial Analysis Related to the 2021 Deannexation 4851-4344-7734, v. 3 1 Attachment 5B Memo to: Meridian Development Corporation Board of Commissioners Ashley Squyres, MDC Administrator Meghan Conrad, Counsel From: Phil Kushlan, Principal, Kushlan | 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 Stre et 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 2 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 $1,700,000 was assigned to the Nine -Mile Floodplain project. The Staff and Commission should use their discretion is weighing the importance of the current program funding levels versus the importance of including these parcels in a new Revenue Allocation Area. It appears as though there is sufficient capacity in the fiscal program of the Downtown District to accommodate this loss of revenue should the MDC and City Council choose to do so. MDC Audited Funds FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Beginning Fund Balance 790,596$ 728,099$ 619,459$ 928,551$ 1,463,391$ 2,035,561$ 2,601,567$ Downtown District Revenue Allocation Income 693,754$ 847,571$ 887,546$ 1,075,786$ 1,392,019$ 1,499,374$ 1,610,499$ Other Available Income 11,078$ 629$ 8,021$ 46,856$ 40,326$ 792,265$ 193,450$ Total Available Current Income 704,832$ 848,200$ 895,567$ 1,122,642$ 1,432,345$ 2,291,639$ 1,803,949$ Total Availalble Resources 1,495,428$ 1,576,299$ 1,515,026$ 2,051,193$ 2,895,736$ 4,327,200$ 4,405,516$ Office and Operating Expenses 403,727$ 498,748$ 283,447$ 263,808$ 557,755$ 838,079$ 332,165$ Professional Services 189,596$ 177,119$ 170,758$ 180,198$ 177,586$ 188,087$ 186,657$ Public Education and Marketing 19,793$ 24,951$ 6,338$ 19,671$ 1,215$ 8,563$ 12,628$ Debt Service Principal 99,213$ 95,269$ 99,145$ 103,527$ 107,685$ 111,519$ 115,520$ Interst 36,019$ 29,565$ 25,687$ 20,598$ 15,934$ 12,100$ 8,097$ Capital Outlay 18,981$ 131,188$ 1,100$ -$ -$ 567,285$ -$ Total Expenditures 767,329$ 956,840$ 586,475$ 587,802$ 860,175$ 1,725,633$ 655,067$ Ending Fund Balance 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$ 6.15% 3,519,860$ Total Revenue Impact of De-annexation % Net after De-annexation Reduction