21-2273 Urban Renewal Northern Gateway Area Eligibility as an Urban Renewal Area Item#23.
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MEMO TO CITY COUNCIL
Request to Include Topic on the City Council Agenda
From: Cameron Arial, Community Development Meeting Date: July 6, 2021
Presenter: Cameron Arial Estimated Time: 15 minutes
Topic: Resolution No. 21-2273: A Resolution of the Mayor and the City Council of the City of
Meridian, Idaho,Accepting that Certain Report on Eligibility for the Northern
Gateway Area as an Urban Renewal Area and Revenue Allocation Area and
Justification for Designating the Area as Appropriate for an Urban Renewal Project;
Determining the Area Identified in the Report to be a Deteriorated Area or a
Deteriorating Area, or a Combination Thereof, as Defined by Idaho Code Sections 50-
2018(9) and 50-2903(8); Directing the Urban Renewal Agency of the City of
Meridian, Idaho, also Known as the Meridian Development Corporation,to
Commence the Preparation of an Urban Renewal Plan for the Area Subject to Certain
Conditions,which Plan May Include Revenue Allocation Provisions For All or Part of
the Area; and Providing an Effective Date
Background
While downtown Meridian is beginning to experience renewed interest, the challenges in
revitalizing aging downtown properties are still apparent. New private investment in the original
downtown Meridian Revitalization District ("original District") has been hampered by the 2008-
2009 recession and, more recently, by uncertainties surrounding COVID-related changes in the
commercial real estate market and rising development costs.
Meridian Development Corporation ("MDC") has been engaged in urban renewal efforts in the
original District since its adoption in late 2002. The original District will sunset in 2026.With
limited time to utilize the urban renewal tools available to assist in funding public infrastructure
improvements, many properties are likely to remain underutilized without intervention.
It is difficult for property owners to justify redevelopment of the small, infill sites that make up the
majority of the original District and fund the required public infrastructure improvements that
condition development.
Historically,the majority of infrastructure improvements and facade improvement projects in the
original District have been in the downtown core. With increasing interest in downtown extending
north to Fairview Avenue/Cherry Lane, MDC retained Kushlan I Associates to prepare an
Eligibility Report to assess the viability of the Northern Gateway Study Area as an urban renewal
project and evaluate its concurrence with Idaho Code requirements. The Eligibility Report (Exhibit
A of the proposed resolution) cites the conditions necessary as well as the financial findings
required.
Page 447
Item#23.
Northern Gateway Study Area
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Current market rents cannot support development costs or produce the returns necessary to
secure private equity investment or traditional bank financing for redevelopment of the small
parcels in the Study Area. The assemblage of parcels can spread soft development costs over a
larger area and when coupled with MDC's ability to fund public infrastructure improvements
required of new development, can spur development interest.
MDC accepted the Northern Gateway Study Area Eligibility Report and, through MDC Resolution
21-026 adopted on June 9, 2021 (Exhibit B of the proposed resolution), authorized its transmittal
to the City Council for consideration and, if accepted as appropriate for an urban renewal project,
subsequent direction for MDC to proceed with preparation of an urban renewal plan.
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Item#23.
The Northern Gateway Study Area encompasses 150 parcels within 126.226 acres.Approximately
77 acres, 133 parcels, are currently within the boundaries of the original District, and the subject
of a deannexation action.
A study area is required to meet at least one of ten conditions specified in Idaho Code Sections 50-
2018(9) and 50-2903(8) to qualify for urban renewal activities. The Eligibility Report finds that
the Study Area meets eight of the ten criteria (Eligibility Report, page 15).
Approval of this resolution provides for:
• Acceptance of the Northern Gateway Study Area Eligibility Report,
• Determination that the Study Area meets the findings and characteristics stipulated in Idaho
Code to establish an urban renewal plan, and
• Directs MDC to prepare a Northern Gateway District Urban Renewal Plan.
Future Actions
The public hearing and second reading of the ordinance to adopt the Second Amendment to the
Meridian Revitalization Urban Renewal District providing for the deannexation of that portion of
the Northern Gateway properties from the original District included in the Study Area also appear
on this evening's agenda for Council consideration.
Following Council acceptance of the Eligibility Report and direction for MDC to begin preparation
of an urban renewal plan, staff and consultants will prepare the Northern Gateway Urban Renewal
Plan. City and MDC staff will inform and engage property owners. In addition, the Planning and
Zoning Commission must review the proposed plan to validate its conformity with the City
Comprehensive Plan.
The Northern Gateway Urban Renewal Plan will then be brought to the City Council for
consideration and adoption following three ordinance readings and a public hearing. It is
anticipated that these final actions will occur mid-November through early December 2021.
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Item#23.
CITY OF MERIDIAN RESOLUTION NO. 21-2273
BY THE CITY COUNCIL: BERNT, BORTON, CAVENER,
HOAGLUN, PERREAULT, STRADER
A RESOLUTION OF THE MAYOR AND THE CITY COUNCIL OF THE CITY OF
MERIDIAN, IDAHO, ACCEPTING THAT CERTAIN REPORT ON ELIGIBILITY FOR
THE NORTHERN GATEWAY AREA AS AN URBAN RENEWAL AREA AND
REVENUE ALLOCATION AREA AND JUSTIFICATION FOR DESIGNATING THE
AREA AS APPROPRIATE FOR AN URBAN RENEWAL PROJECT; DETERMINING
THE AREA IDENTIFIED IN THE REPORT TO BE A DETERIORATED AREA OR A
DETERIORATING AREA, OR A COMBINATION THEREOF, AS DEFINED BY
IDAHO CODE SECTIONS 50-2018(9) AND 50-2903(8); DIRECTING THE URBAN
RENEWAL AGENCY OF THE CITY OF MERIDIAN, IDAHO, ALSO KNOWN AS THE
MERIDIAN DEVELOPMENT CORPORATION, TO COMMENCE THE
PREPARATION OF AN URBAN RENEWAL PLAN FOR THE AREA SUBJECT TO
CERTAIN CONDITIONS, WHICH PLAN MAY INCLUDE REVENUE ALLOCATION
PROVISIONS FOR ALL OR PART OF THE AREA; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City Council (the "City Council") of the City of Meridian, Idaho (the
"City"), found that deteriorating areas exist in the City, therefore, for the purposes of the Idaho
Urban Renewal Law of 1965, Chapter 20, Title 50, Idaho Code, as amended(the "Law"), created
an urban renewal agency pursuant to the Law, authorizing the agency to transact business and
exercise the powers granted by the Law and the Local Economic Development Act, Chapter 29,
Title 50, Idaho Code, as amended (the "Act") upon making the findings of necessity required for
creating the Urban Renewal Agency of the city of Meridian, Idaho, also known as the Meridian
Development Corporation ("MDC");
WHEREAS, the Mayor has duly appointed the Board of Commissioners of MDC (the
"MDC Board"), which appointment was confirmed by the City Council;
WHEREAS, on October 8, 2002, the City Council, after notice duly published, conducted
a public hearing on the Meridian Revitalization Plan Urban Renewal Project, which is also
referred to as the Downtown District(the "Downtown District Plan");
WHEREAS, following said public hearing, the City Council adopted its Ordinance No.
02-987 on December 3, 2002, approving the Downtown District Plan, making certain findings
and establishing the Downtown District revenue allocation area (the "Downtown District Project
Area");
WHEREAS, the City Council, after notice duly published, conducted a public hearing on
the Ten Mile Road Urban Renewal Plan (the "Ten Mile Plan"). The public hearing was
continued to June 21, 2016, for further testimony;
RESOLUTION NO. 21-2273 - 1 Page 450
Item#23.
WHEREAS, following said public hearings, the City Council adopted its Ordinance No.
16-1695 on June 21, 2016, approving the Ten Mile Plan, making certain findings and
establishing the Ten Mile revenue allocation area(the "Ten Mile Project Area");
WHEREAS, the City Council, after notice duly published, conducted a public hearing on
the First Amendment to the Meridian Revitalization Plan Urban Renewal Project ("First
Amendment to the Downtown District Plan");
WHEREAS, following said public hearing, the City Council adopted its Ordinance No.
20-1881 on June 9, 2020, approving the First Amendment to the Downtown District Plan
deannexing certain parcels and making certain findings (collectively, the Downtown District
Plan, and amendments thereto, are referred to as the "Existing Downtown District Plan," and the
Downtown District Project Area, and amendments thereto, are referred to as the "Existing
Downtown District Project Area");
WHEREAS, the City Council, after notice duly published, conducted a public hearing on
the Urban Renewal Plan for the Union District Urban Renewal Project (the "Union District
Plan");
WHEREAS, following said public hearing, the City Council adopted its Ordinance No.
20-1882 on June 9, 2020, approving the Union District Plan, making certain findings and
establishing the Union District revenue allocation area(the "Union District Project Area");
WHEREAS, the Existing Downtown District Plan, the Ten Mile Plan, and the Union
District Plan and their project areas are collectively referred to as the "Existing Project Areas;"
WHEREAS, it has become apparent that additional property, most of which is located
within the City, and a portion of which is located within the City's area of operation within
unincorporated Ada County, may be deteriorating or deteriorated and should be examined as to
whether such an area is eligible for an urban renewal project;
WHEREAS, in 2021, Kushlan I Associates commenced an eligibility study and
preparation of an eligibility report for an area 126.226 acres in size, approximately 77 acres of
which is currently located within the boundaries of the Existing Downtown District Project Area,
which area is subject to a deannexation. The area is generally located in the central part of
Meridian, northeast of the City's downtown core, and east of Meridian Road and south of
Fairview Avenue extending to Pine Avenue between NE 2nd Street and E. 3rd Street, and which
area also includes a commercial area east of Meridian Road fronting Fairview Avenue on the
north and a 17.64-acre parcel located on the northwest corner of Meridian Road and Cherry
Lane. The eligibility study area is commonly referred to as the Northern Gateway District Study
Area(the"Study Area");
WHEREAS, MDC obtained an eligibility report entitled Northern Gateway Urban
Renewal District (Proposed) Eligibility Report, dated May 2021 (the "Report"), which examined
the Study Area, which area also includes real property located within unincorporated Ada
County, for the purpose of determining whether such area was a deteriorating area and/or a
deteriorated area as defined by Idaho Code Sections 50-2018(8), (9) and 50-2903(8);
RESOLUTION NO. 21-2273 - 2 Page 451
Item#23.
WHEREAS, the Report, a copy of which is attached hereto as Exhibit A, found the
existence of one or more of the statutory criteria for the area to be considered eligible for urban
renewal activities;
WHEREAS, pursuant to Idaho Code Sections 50-2018(8), (9) and 50-2903(8), which
define the qualifying conditions of a deteriorating area and a deteriorated area, many of the
conditions necessary to be present in such an area are found in the Study Area, i.e.,
a. the presence of a substantial number of deteriorated or deteriorating structures;
and deterioration of site;
b. age or obsolescence;
C. the predominance of defective or inadequate street layout;
d. faulty lot layout in relation to size, adequacy, accessibility, or usefulness; obsolete
platting;
e. insanitary or unsafe conditions;
f. diversity of ownership;
g. results in economic underdevelopment of the area; and
h. substantially impairs or arrests the sound growth of a municipality.
WHEREAS, the Study Area contains open land;
WHEREAS, under the Act a deteriorated area includes any area which is predominantly
open and which, because of obsolete platting, diversity of ownership, deterioration of structures
or improvements, or otherwise, results in economic underdevelopment of the area or
substantially impairs or arrests the sound growth of a municipality;
WHEREAS, Idaho Code Sections 50-2018(9), 50-2903(8) and 50-2008(d) list the
additional conditions applicable to open land or open areas, including open land areas to be
acquired by MDC, which are the same or similar to the conditions set forth in the definitions of
"deteriorating area" and"deteriorated area;"
WHEREAS, the Study Area is not "predominantly" open; however, the Report addresses
the necessary findings concerning including open land within any urban renewal area as defined
in Idaho Code Sections 50-2018(9), 50-2903(8)(c), and 50-2008(d);
WHEREAS, the effects of the listed conditions cited in the Report result in economic
underdevelopment of the area, substantially impairs or arrests the sound growth of a
municipality, constitutes an economic or social liability, and is a menace to the public health,
safety, morals, or welfare in its present condition or use;
WHEREAS, MDC, on June 9, 2021, adopted Resolution No. 21-026 (a copy of which is
attached hereto as Exhibit B and incorporated herein by this reference, without attachments
thereto) accepted the Report and authorized the Chair, Vice-Chair, or Administrator of MDC to
transmit the Report to the City Council requesting its consideration for designation of an urban
renewal area and requesting the City Council to direct MDC to prepare an urban renewal plan for
the Study Area, which plan may include a revenue allocation provision as allowed by law;
WHEREAS, under the Law and Act, Idaho Code Sections 50-2903(8)(f) and 50-2018(8)
RESOLUTION NO. 21-2273 - 3 Page 452
Item#23.
and (9), the definition of a deteriorating area shall not apply to any agricultural operation as
defined in Section 22-4502(2), Idaho Code, absent the consent of the owner of the agricultural
operation except for an agricultural operation that has not been used for three (3) consecutive
years;
WHEREAS, the Study Area includes a parcel subject to such consent. While the
necessary consent has not been obtained, it is anticipated the consent will be obtained prior to
City Council consideration of any urban renewal plan;
WHEREAS, Idaho Code Section 50-2018(18) provides that an urban renewal agency
cannot exercise jurisdiction over any area outside the city limits without the approval of the other
city or county declaring the need for an urban renewal plan for the proposed area;
WHEREAS, the portion of the Study Area lying outside the City limits and within
unincorporated Ada County includes a parcel which is anticipated to proceed through the formal
annexation process of the City;
WHEREAS, though a portion of the Study Area lies outside the City limits, because that
parcel is anticipated to proceed through the voluntary annexation process, no formal resolution
from Ada County, Idaho, has been requested. In the event annexation of that parcel has not been
obtained by the time the City Council considers approval of a new urban renewal plan, it is
anticipated the City would seek to obtain an agreement with Ada County, Idaho, as required by
Idaho Code Section 50-2906(3);
WHEREAS, the Report includes a preliminary analysis concluding the base assessment
roll value for the Study Area along with the base assessment rolls for the Existing Project Areas
and any proposed revenue allocation areas or amendments thereto, do not exceed 10% of the
current assessed valuation of all taxable property within the City;
WHEREAS, pursuant to Idaho Code Section 50-2008, an urban renewal project may not
be planned or initiated unless the local governing body has, by resolution, determined such area
to be a deteriorated area or a deteriorating area, or combination thereof, and designated such area
as appropriate for an urban renewal project;
WHEREAS, Idaho Code Section 50-2906 also requires that in order to adopt an urban
renewal plan containing a revenue allocation financing provision, the local governing body must
make a finding or determination that the area included in such plan is a deteriorated area or a
deteriorating area; and
WHEREAS, it is desirable and in the best public interest that MDC prepare an urban
renewal plan for the area identified as the Northern Gateway District Study Area in the Report
located in the city of Meridian, county of Ada, state of Idaho.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL
OF THE CITY OF MERIDIAN, AS FOLLOWS:
Section 1. That the City Council acknowledges acceptance and receipt of the Report.
RESOLUTION NO. 21-2273 -4 Page 453
Item#23.
Section 2. That the City Council finds and declares that the Northern Gateway
District Study Area identified in the Report, attached hereto as Exhibit A, which a portion of
such area is subject to deannexation from the Existing Downtown District Project Area, is a
deteriorated area and/or a deteriorating area existing in the City and the City's area of operation,
as defined in Title 50, Chapters 20 and 29, Idaho Code, as amended, and qualifies as an urban
renewal project and justification exists for designating the area as appropriate for an urban
renewal project.
Section 3. That the City Council finds and declares there is a need for MDC, an
urban renewal agency, to function in accordance with the provisions of Title 50, Chapters 20 and
29, Idaho Code, as amended, within a designated area for the purpose of establishing an urban
renewal plan.
Section 4. That having made such designation, the City Council hereby directs MDC
to commence preparation of an urban renewal plan for the Northern Gateway District Study Area
described in the Report for consideration by the MDC Board and, if acceptable, final
consideration by the City Council in compliance with Title 50, Chapters 20 and 29, Idaho Code,
as amended.
Section 5. That the City Council directs MDC to obtain the required agricultural
consent from the property owner(s)prior to formally submitting the proposed urban renewal plan
to the City Council for its consideration.
Section 6. That in the event annexation of the parcel currently located within
unincorporated Ada County has not been obtained by the time the City Council considers
approval of a new urban renewal plan, it is anticipated the City Council would seek to obtain an
agreement with Ada County, Idaho, as required by Idaho Code Section 50-2906(3).
Section 7. That this Resolution shall be in full force and effect immediately upon its
adoption and approval.
ADOPTED By the Council of the City of Meridian, Idaho, this 6th day of July 2021.
APPROVED By the Mayor of the City of Meridian, Idaho, this 6th day of July 2021.
APPROVED:
MAYOR Robert E. Simison
ATTEST:
CITY CLERK Chris Johnson
RESOLUTION NO. 21-2273 - 5 Page 454
Item#23. Exhibit A
C/` WER11 �1
Northern Gateway Urban Renewal District
(Proposed)
Eligibility Report
Prepared for
The City of Meridian
and
The Meridian Development Corporation
May 2021
planning and management services
post office I*ox 8463 Boise,ID$37
Kushlan I Associates
Boise, Idaho
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Item#23.
Introduction: Kushlan I Associates was retained by the Urban Renewal Agency of
the City of Meridian, Idaho, also known as the Meridian Development Corporation (the
"MDC")to assist in their consideration of establishing a new urban renewal district,[in the
City of Meridian, Idaho, and its area of operation.
Elected Officials serving the City of Meridian are:
Mayor: Robert Simison
Council President: Treg Bernt
Council Vice President: Brad Hoaglun
Council Members: Joe Borton
Luke Cavener
Liz Strader
Jessica Perreault
City Staff
Community Development Director: Cameron Arial
Idaho Code§50-2006 states: "URBAN RENEWAL AGENCY. (a)There is hereby created
in each municipality an independent public body corporate and politic to be known as the
"urban renewal agency" that was created by resolution as provided in section 50-2005,
Idaho Code, before July 1, 2011, for the municipality..." to carry out the powers
enumerated in the statutes. The Meridian City Council adopted Resolution 01-397 on July
24, 2001 bringing forth those powers within the City of Meridian.
The Mayor,with the confirmation of the City Council,has appointed nine members to the
MDC Board of Commissioners(the"MDC Board").The MDC Board currently oversees the
implementation of three urban renewal districts. Two are focused on the revitalization of
downtown Meridian. The first, the Meridian Revitalization Plan Urban Renewal Project
(the "Downtown District") was established by the City Council's adoption of Ordinance
No. 02-987 on December 3, 2002. The second district, the Urban Renewal Plan for the
Union District Urban Renewal Project (the "Union District") was established with the
adoption of Ordinance No. 20-1882 on June 9, 2020. Both the Downtown District and the
Union District are focused on redevelopment activities in and around the City's downtown
core. The third district,the Urban Renewal Plan for the Ten Mile Road-A Urban Renewal
Project (the "Ten Mile District") was established by Ordinance No. 16-1695 adopted on
June 21, 2016, and is focused on economic development outside of the City's core to
support implementation of the Ten Mile Interchange Specific Area Plan.
The current membership of the Commission is as follows:
Chair: David Winder
Vice Chairman Nathan Mueller
Secretary/Treasurer Steve Vlassek
Commissioners Dan Basalone
Rob McCarvel
Treg Bernt
Tammy deWeerd
Diane Bevan
Kit Fitzgerald
' Throughout this Study,urban renewal/revenue allocation area will be referred to as an"urban renewal
district."
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Staff:
Urban Renewal Administrator: Ashley Squyres
Legal Counsel: Todd Lakey
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Background:
While Native Americans inhabited the area for centuries, the development of the
community of Meridian,as we know it today,evolved through the late nineteenth century.
European settlement started in the 188os and was originally located on a farm owned by
the Onweiler family. A school was opened in 1885. The U.S. Postal Service established a
mail drop along the Oregon Short Line Railroad and the site was named Hunter after its
superintendent. Community activity grew around this mail stop focused on the railroad.
In 1893 an Odd Fellows lodge was organized and called itself Meridian, acknowledging
that it was located on the Boise Meridian the primary North-South survey benchmark for
Idaho. That name grew in primary use as the name of the settlement and the Village of
Meridian was incorporated in 1903 with a population of approximately 200.
The economy had traditionally been focused on the support of the surrounding
agricultural activities. A major creamery was established in the community in 1897 to
support the nearby dairies. Fruit orchards were located throughout the area.
Meridian was a significant stop on the Interurban electric railway from 19o8 to 1928. This
service provided convenient access for passengers and freight in both easterly and westerly
directions.
Throughout most of the loth century, Meridian remained a relatively quiet community
focused on its agricultural roots.US Census Bureau data,reflects a 1910 population of 619
people growing to 2,616 by 1970. However, starting in 197o the pace of growth in
Southwest Idaho quickened and Meridian's growth initially reflected, and then exceeded
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Item#23.
the regional rates by significant margins. Over the past twenty-five years the rate of
growth has been startling by any reasonable standard. The following table reflects that
population growth over the city's history.
1903 (Incorporation Estimate) 200
1910 619
1920 1,013
1930 1,004
1940 1,465
1950 1,500
196o 2,100
1970 2,600
198o 6,658
1990 9,596
2000 34,919
2010 75,092
2020 114,200
2021(Estimate) 129,555
When income statistics are compared to statewide numbers, the population of Meridian
compares favorably with the rest of Idaho in these categories. The median household
income in Meridian is $71,389, approximately 28%above the statewide figure Of$55,785•
Per capita money income for the Meridian population is $33,328 as compared to the
statewide number of$27,970. The percentage of the Meridian population below poverty
level is 8.6% as compared to the statewide number Of 11.2%.
Investment Capacity: Cities across the nation actively participate in the economic
vitality of their communities through investment in infrastructure. Water and sewer
facilities as well as transportation, communication, electrical distribution and other
systems are all integral elements of an economically viable community. Idaho cities have
a significant challenge in responding to these demands along with the on-going need to
reinvest in their general physical plant to ensure it does not deteriorate to the point of
system failure. They face stringent statutory and constitutional limitations on revenue
generation and debt as well as near total dependence upon state legislative action to
provide funding options.These strictures severely constrain capital investment strategies.
The tools made available to cities in Title 50,Chapters 20 and 29,the Urban Renewal Law
and the Local Economic Development Act are some of the few that are available to assist
communities in their efforts to support economic vitality. New sources of State support
are unlikely to become available in the foreseeable future, thus the City of Meridian's
interest in exploring the potential for establishing another urban renewal district is an
appropriate public policy consideration.
The City of Meridian initially established its Urban Renewal Agency in 2oo1. As noted
above, the Downtown District's exclusive focus, limited by the boundaries of the district,
is on the traditional downtown area of Meridian. The Ten Mile District was created in
2016 and was designed to support the implementation of the Ten Mile Interchange
Specific Area Plan. A third urban renewal district was created in 2020 from an area de-
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Item#23.
annexed from the original Downtown District to support a significant mixed use-project.
The Northern Gateway Urban Renewal District would, if approved by the MDC Board of
Commissioners and Meridian City Council, would remove 133 parcels from the existing
Downtown District2 and combine those with other properties and rights-of-way north of
Fairview Avenue and southeast of Fairview Avenue to establish a new district. One large
property(Kobe property~ 17.64 acres) currently under consideration for inclusion in the
district remains outside the city limits and in unincorporated Ada County. To include this
parcel in a district under the jurisdiction of MDC, an agreement would be required
between the City and Ada County to permit this inclusion. Should annexation of this
parcel be effectuated prior to the establishment of the district by the City Council, no
agreement would be required.
Comprehensive Plan:
The City of Meridian Comprehensive Plan, updated in 2019 calls for a mixture of Office,
High Density Residential, Commercial and Mixed-Use development in the Study Area
under current review. The Study Area is in transition from a predominately single-family
residential area dating back to the early years of the community. While many of the
residences remain in their original use, many others have been converted to office uses
creating a patchwork of uses with more intense commercial activity along the arterial
streets.
2 The Second Amendment to the Meridian Revitalization Plan seeking to deannex certain parcels from the
existing Downtown District,including those parcels that are contemplated to be considered for inclusion in
the proposed Northern Gateway District,has been approved by the MDC Board and submitted to the City
for its consideration.
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Item#23.
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Steps in Consideration of an Urban Renewal District:
The first step in consideration of establishing an urban renewal district in Idaho is to
define a potential area for analysis as to whether conditions exist within it to qualify for
redevelopment activities under the statute.We have called this the"Study Area."
The next step in the process is to review the conditions within the Study Area to determine
whether the area is eligible for creating a district.The State Law governing urban renewal
sets out the following criteria, at least one of which must be found, for an area to be
considered eligible for urban renewal activities:
1. The Presence of a Substantial Number of Deteriorated or Deteriorating
Structures and Deterioration of Site or Other Improvements 150-2018(9)
and 50-2903(8)(b); 50-2903(8)(c)]
2. Age or Obsolescence 150-2018(8) and 50-2903(8)(a)]
3. Predominance of Defective or Inadequate Street Layout L50-2018(9) and
50-2903(8)(b)]
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Item#23.
4. Faulty Lot Layout in Relation to Size, Adequacy, Accessibility, or
Usefulness; Obsolete Platting 150-2018(9) and 50-2903(8)(b); 50-
2903(8)(c)]
5. Insanitary or Unsafe Conditions L50-2oi8(9) and 50-2903(8)(b)]
6. Diversity of Ownership 150-2018(9) and 50-2903(8)(b); 50-2903(8)(c)]
7. Tax or Special Assessment Delinquency 150-2018(9) and 50-2903(8)(b)]
8. Defective or Unusual Conditions of Title L50-2oi8(9) and 50-2903(8)(b)]
9. Results in Economic Underdevelopment of the Area 150-2903(8)(b); 50-
2903(8)(c)]
10. Substantially Impairs or Arrests the Sound Growth of a Municipality 150-
2018(9) and 50-2903(8)(b); 50-2903(8)(c)]
If the Eligibility Report finds that one or more of the conditions noted above exists within
the Study Area,then the Agency may accept the findings and forward the Eligibility Report
to the City Council for their consideration. If the City Council concurs with the
determination of the Agency, they may direct that an Urban Renewal Plan be developed
for the area that addresses the issues raised in the Eligibility Report.
The Agency then acts to prepare the Urban Renewal Plan for the new District and
establishing a Revenue Allocation Area to fund improvements called for in the Plan. Once
the Plan for the District and Revenue Allocation Area are completed, the Agency Board
forwards it to the City Council for their consideration.
The City Council must refer the Urban Renewal Plan to the Planning and Zoning
Commission to determine whether the Plan, as presented, is consistent with the City's
Comprehensive Plan and make a corresponding finding. At the same time, other taxing
entities levying property taxes within the boundaries of the proposed Urban Renewal
District are provided a thirty-day opportunity to comment on the Plan to the City Council.
While the taxing entities are invited to comment on the Plan, their concurrence is not
required for the City Council to proceed with formal consideration.
Based on legislative changes to Idaho Code § 50-2908(2)(a), effective July 1, 2020, the
Ada County Highway District (ACHD) is allocated all of the taxes levied by ACHD within
a revenue allocation area first formed or expanded to include property on or after July 1,
2020(including taxes levied on the base and increment values),which would apply to this
proposed district,if formed. However,ACHD and MDC may enter into an agreement for
a different allocation, which agreement shall be submitted to the State Tax Commission
and to the Ada County Clerk by ACHD as soon as practicable after the parties have entered
in the agreement and by no later than September i of the year in which the agreement
takes effect. In the case of the Northern Gateway Study Area,the affected taxing districts
for those properties located within the city limits of Meridian are:
• The City of Meridian
• The West Ada School District (School District No. 2)
• Ada County
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• Emergency Medical District/Ada County Ambulance
• Mosquito Abatement District
• The Ada County Highway District
• Meridian Library District
• Meridian Cemetery District
• Western Ada Recreation District
• College of Western Idaho
For the parcel located in unincorporated Ada County,the affected taxing districts are:
• The West Ada School District(Joint School District No. 2)
• Ada County
• Emergency Medical District/Ada County Ambulance
• Mosquito Abatement District
• The Ada County Highway District
• Meridian Library District
• Meridian Cemetery District
• Western Ada Recreation District
• College of Western Idaho
• Meridian Fire District
• Pest Extermination District
Once the Planning and Zoning Commission makes their finding of conformity and the
thirty-day comment period has passed, the City Council is permitted to hold a public
hearing and formally consider the adoption of the Plan creating the new Urban Renewal
District and Revenue Allocation Area.
The City Council must also find that the taxable value of the district to be created plus the
Base Assessed Value of any existing Urban Renewal / Revenue Allocation Area does not
exceed the statutory maximum of io%of the citywide assessed valuation.
If the City Council, in their discretion chooses to proceed, they will officially adopt the
Urban Renewal Plan and Revenue Allocation Area and provide official notification of that
action to the affected taxing districts, County Assessor and Idaho State Tax Commission.
The Agency then proceeds to implement the Plan.
Description of the Northern Gateway Study Area:
The Study Area subject to the current review is generally located in the central part of
Meridian, northeast of the City's downtown core, and is generally bounded by Meridian
Road on the west to the intersection of Meridian Road and W.Cherry Lane travelling west
and E. Fairview Avenue travelling east. The Study Area then includes a large 17.64-acre
parcel(Kobe Property)bounded by W.Cherry Lane to the south and Meridian Road to the
east. The Study Area also includes the commercial area east of Meridian Road and north
of Fairview Avenue. The eastern boundary extends south along NE 5t'Avenue and then
over to what would be NE 4th Street if extended, and then over to NE 3rd Street. The
southern boundary extends to E. Pine Avenue between NE 3rd Street and NE end Street,
and then travels up NE end Street and over E. Washington Avenue to connect back to
Meridian Road.
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The size and value information presented in Attachment i was derived from the Ada
County Assessor's on-line parcel information system3. The 2O20 taxable value of the
portion of the Study Area located in unincorporated Ada County,represents exceptionally
low assessed value as compared to the more developed area surrounding it located within
the corporate limits of the City of Meridian. Land values in the more developed,
commercially zoned areas range from approximately$5.00 to$15.00 per square foot. The
unincorporated agricultural land reflects a current assessed value of$.04 per square foot
consistent with assessed values assigned to agricultural properties in the broader area. As
a comparison,the vacant parcel across Meridian Road within the city limits and zones for
commercial purposes has an assessed value of$8.50 per square foot.
Northern Gateway Urban Renewal Area
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The Study Area
The Northern Gateway Study Area consists of one hundred fifty(15O)tax parcels located
in central Meridian,northeast of the City's downtown core,and generally east of Meridian
Road and south of Fairview Avenue.A portion of the Study Area fronts the north side of
Fairview Avenue east of Meridian Road and there is a 17.64 acre parcel (Kobe Property)
s For purposes of this Study,the 2020 taxable values were reviewed as at the time of this review the 2021
value information was not available. Use of the 2020 values provides a more conservative analysis as it is
generally understood significant value increases will occur in 2021.Further,based on the adoption of
H389,effective retroactive to January 1,2021,the Homeowner Property Tax Exemption will increase to a
maximum of$125,000. This is anticipated to further reduce the base. Again,as the 2021 tax assessments
were not yet available at the time this Study was prepared,the 2020 data has been used. The 10%analysis
set forth below will ultimately be revisited in any further urban renewal plan.
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located at the northwest corner of Meridian Road and Cherry Lane included as well. The
Kobe Property is undeveloped and retains its historic agricultural use. The Kobe Property
is currently located in unincorporated Ada County necessitating an inter-governmental
agreement between MDC and Ada County to permit its inclusion within the boundaries of
any future revenue allocation area. The area contains 105.63 acres in 150 separate tax
parcels not including public rights-of-way. The properties within the Study Area carry
zoning designations consistent with its historic usage. Commercial zoning designations
are in place on 59.55 acres (56.4% of the district). Residential zoning of R-8 and R-15
predominate in the area. One parcel is zoned R-40. Commercial zoning is in place on 104
of the parcels. Residential zoning of R-8 occupies 11.61 acres, R-15 occupies 14.54 acres
and R-40 occupies 2.29 acres. Properties designated as residential constitute 26.9%of the
total acreage. The balance of the area is zoned Rural Urban Transition (RUT) in
unincorporated Ada County. Ada County Assessor records show that 28 of the residential
properties reflect a Homeowners Property Tax Exemption indicating they are owner
occupied residences.
Nineteen(19)vacant parcels represent 28.75%of the total land area of the Study Area.
Religious and fraternal institutions and governmental entities occupy 13 tax parcels
representing 8%of the total.
The Study Area is one of the older developed areas in the community. As noted above,
Meridian was established in the 188os and eventually incorporated as a Village under
Idaho law in 1903. Most of the structures constructed as residences date to the first 20
years of the loth Century and most predate 1960. Many of these residential structures
have transitioned into commercial uses over time.
When the improvement value assigned to a parcel is less than or approaches the land
value, a deteriorated or deteriorating condition is present.National real estate appraisal
standards suggest that in an economically viable property,land value should contribute
approximately 30%of the total value leaving 70%to the improvements.As that ratio
shifts,with improvement value declining as a proportion of the total, a condition of
disinvestment is determined to be present.At a point when the improvement value
represents less than 50%of the total(i.e. improvement value is less than land value)
such condition represents a"deteriorated condition"for the purposes of this analysis.We
have assumed for this Study that those properties with improvement values less than 150
of land value approach the "deteriorated condition" and thus can be classified as
"deteriorating" under the definitions in state law. With these benchmarks in mind, we
find that 33 properties (20.4%) reflect improvement values less than land values and an
additional 23 properties(14.2%)reflect improvement values less than 150%of land values.
When considered together, 56 properties representing 34.6% of the total taxable parcels
reflect a deteriorated or deteriorating condition.
Streets: Fairview/Cherry Lane, Meridian Road, Main Street and Pine Avenue constitute
the backbone of the street network in the Study Area. These streets have received recent
investment with their condition reflecting current urban standards. The 17.64-acre Kobe
property has not been subdivided to accommodate the vision expressed in the City's
Comprehensive Plan, so no street network has been established in this property which
represents the largest single land holding in the Study Area. The 4.o-acre parcel located
at the extreme northerly edge of the Study Area has no direct access to a public street and
therefore is landlocked. The area south of Fairview reflects a fine-grained grid pattern
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common to communities developed in the early loth century. However, the grid is
incomplete in a number of places. For example, NE 3rd Street is interrupted in three
places. Similar interruptions can be found on Gruber Avenue, Bradley Avenue and
Washington Avenue. Improvement conditions reflecting current City and ACHD
standards are in place in parts of the Study Area, but significant portions still lack curb,
gutter and sidewalks. Pavement conditions vary from Good to Poor. Sections of East
Washington and East Carlton located east of NE 21/2 Street appear to provide only half of
the street width.
Illumination: Street lighting levels are inconsistent creating a hazard as drivers'eyes must
frequently adjust to differing light levels potentially obscuring pedestrians and roadway
obstructions. Spacing between standard lighting fixtures varies throughout the Study
Area and some arterial sections have smaller-scale decorative lighting in lieu of the
standard fixture.
Sidewalks: Pedestrian facilities are incomplete. Even where curb and gutter sections have
been installed, sidewalks are often nonexistent. The fine-grained street grid pattern
invites movements through the area on foot. Yet, in many situations in the Study Area,
pedestrian traffic is forced to walk in the street due to a lack of facilities to accommodate
that type of traffic.
Storm Drainage: Those areas without modern curb and gutter sections in place also do
not provide a means to collect and dispose of storm drainage or snow melt. This condition
allows for surface ponding undermining the integrity of the street surface and obscuring
hazards in wet conditions.
Water System: A major portion of the Study Area is served by an 8"pipe grid providing
looping for sufficient redundancy in case of a failure of a section of pipe. However, the
City's Water System Master Plan notes several locations where 6" pipes remain in place
and one location, north of Pine Avenue, on NE end Street is served by a 4"pipe. These 6"
and 4" pipes would provide insufficient capacity to support fire flows as the area
redevelops as envisioned in the Comprehensive Plan.
Sewage Collection System: No deficiencies in this area were noted.
Analysis of the Study Area:
A review of the Study Area reflects an area in transition. Much of the traditional housing
stock has been converted to commercial uses and investment in multi-family structures
has occurred in some instances. These investments reflect the vision expressed in the
City's Comprehensive Plan. However, many of the residential structures remain in that
use suggesting an area in transition. Substantial investment in public infrastructure
throughout the entire Study Area will be required to support the achievement of the City's
vision. The Kobe property will require investment as it currently has no infrastructure,
other than the peripheral arterial streets, to support development consistent with the
Comprehensive Plan. Meaningful progress may depend upon some level of public
intervention to support the private investment envisioned in the Plan.
For the convenience of the reader,the statutory criteria are reiterated,at least one of which
must be found to qualify an area for urban renewal activities. Those conditions are:
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1. The Presence of a Substantial Number of Deteriorated or Deteriorating Structures
and Deterioration of Site or Other Improvements 150-2o18(g)and 50-2903(8)(b);
50-2903(8)(c)]
2. Age or Obsolescence L50-2018(8) and 50-2903(8)(a)]
3. Predominance of Defective or Inadequate Street Layout 150-2018(9) and 50-
2903(8)(b)]
4. Faulty Lot Layout in Relation to Size, Adequacy, Accessibility, or Usefulness;
Obsolete Platting 150-2018(9) and 50-2903(8)(b); 50-2903(8)(c)]
5. Insanitary or Unsafe Conditions L50-2o18(9) and 50-2903(8)(b)]
6. Diversity of Ownership 150-2018(9) and 50-2903(8)(b); 50-2903(8)(c)]
7. Tax or Special Assessment Delinquency 150-2018(9) and 50-2903(8)(b)]
8. Defective or Unusual Conditions of Title 150-2018(9) and 50-2903(8)(b)]
9. Results in Economic Underdevelopment of the Area 150-2903(8)(b); 50-
2903(8)(c)]
10. Substantially Impairs or Arrests the Sound Growth of a Municipality 150-2018(9)
and 50-2903(8)(b), 50-2903(8)(c)]
Analysis: Northern GatewaX
Criterion #1: The Presence of a Substantial Number of Deteriorated or Deteriorating
Structures; and Deterioration of Site: We found that 33 properties (20.4%) reflect
improvement values less than land values and an additional 23 properties(14.2%) reflect
improvement values less than 150% of land values. When considered together, 56
properties representing 34.6% of the total taxable parcels reflect a deteriorated or
deteriorating condition. Therefore, criterion #1 is met.
Criterion #2: Age or Obsolescence: Most of the structures within the Study Area date
from the first half of the loth Century.Most were constructed as residential buildings and
while many having been converted to office uses, modern requirements for commercial
use suggests the converted homes will eventually transition into more up-to-date
office/commercial designs. A manufactured home community occupies land along NE 3rd
Street that is designated for High Density Residential uses in the Comprehensive Plan.
Over 28 acres in the Study Area,which is located in the central part of the City, northeast
of the City's downtown core,remains vacant despite the City's articulated vision calling for
a significantly more intense development pattern. Therefore, criterion #2 is met.
Criterion #3: Predominance of Defective or Inadequate Street Layout: As noted above,
certain streets in the Study Area are interrupted creating breaks in the traditional street
grid pattern, which impairs traffic circulation and mobility goals. Several sections do not
meet current urban street development standards. Therefore, criterion #3 is met.
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Criterion #4: Faulty Lot Layout in Relation to Size, Adequacy, Accessibility or
Usefulness; Obsolete Platting: One 4-acre parcel located north of Fairview Avenue has no
direct access to a public right-of-way. The Kobe 17.67-acre parcel has not been subdivided
to accommodate the development pattern envisioned in City planning documents. Large
vacant parcels south of Fairview interrupt the historic grid pattern of streets. The small
residential parcel sizes impair development consistent with the Comprehensive Plan as
property assembly would be necessary. Therefore, criterion #4 is met.
Criterion #5: Insanitary or Unsafe Conditions: The lack of a complete system of
sidewalks forcing pedestrians into the street creates an unsafe condition. This condition
forces vehicles,bicycles and pedestrians to share roadways in an inconsistent manner and
impairs multi-modal usages and overall mobility. Inconsistent street lighting patterns
contribute to an unsafe driving situation. Therefore, criterion #5 is met.
Criterion #6: Diversity of Ownership: The ownership of the 105.63 acres in the Study
Area is in the hands of one hundred fifty(150)entities. Such diversity of ownership creates
significant issues with property assemblage necessary to support the goals of the City's
Comprehensive Plan. Therefore, criterion #6 is met.
Criterion#7. Tax or Special Assessment Delinquency: According to Ada County Assessor
records, no delinquencies exist. Therefore, criterion#7 is not met.
Criterion #8:Defective or unusual condition of title: No defective or unusual conditions
of title are reflected in Ada County records. Therefore, criterion #8 is not met.
Criterion #9: Results in Economic Underdevelopment of the Area: Current uses within
the Study Area are inconsistent with the goals set forth in the City's Comprehensive Plan.
Additionally, as set forth above, a significant number of parcels reflect deteriorated or
deteriorated conditions showing significant disinvestment in the Study Area. More than
Twenty-eight(28.75)vacant acres in the central part of the City,one of the fastest growing
communities in the nation, further suggests "Economic Underdevelopment" exists in the
Study Area.Therefore, criterion#9 is met.
Criterion#10:Substantially Impairs orArrests the Sound Growth of a Municipality:The
State of Idaho, the City of Meridian and the Ada County Highway District have made
substantial investment in the transportation and utility facilities serving this and the
surrounding areas. The City of Meridian has expressed its vision for this area in the
creation and adoption of the Comprehensive Plan,but without the capacity to provide full
public infrastructure,the Study Area will remain an under-utilized area in the midst of the
fastest growing area in the State of Idaho. Criterion#10 is met.
Findings: Northern Gateway Conditions exist within the Study Area to allow the
Board of Commissioners of the Meridian Development Corporation and the Meridian City
Council to determine that the area is eligible for urban renewal activities as prescribed in
State Law.
Summary of Findings
Criteria Met Not
Met
1 The Presence of a Substantial Number of Deteriorated X
or Deteriorating Structures; and Deterioration of Site
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Item#23.
2 Age or Obsolescence X
3 Predominance of Defective or Inadequate Street X
Layout
4 Faulty Lot Layout in Relation to Size,Adequacy, X
Accessibility or Usefulness; Obsolete Platting
5 Insanitary or Unsafe Conditions X
6 Diversity of Ownership X
7 Tax or Special Assessment Delinquency X
8 Defective or unusual condition of title X
9 Results in Economic Underdevelopment of the Area X
io Substantially Impairs or Arrests the Sound Growth of X
a Municipality
Analysis: Open Land Conditions: In addition to the eligibility conditions
identified above, the geographic area under review also considers the "open land"
conditions.Idaho Code Section 50-2903(8)(c)states: "[a]ny area which is predominately4
open and which because of obsolete platting, diversity of ownership, deterioration of
structures or improvements, or otherwise, results in economic underdevelopment of the
area or substantially impairs or arrests the sound growth of a municipality.The provisions
of section 50-2oo8(d), Idaho Code,shall apply to open areas."
The eligibility criteria set forth in Idaho Code Section 50-2903(8)(c) for predominantly
open land areas mirror or are the same as those criteria set forth in Idaho Code Sections
50-2o18(9) and 50-2903(8)(b). "Diversity of ownership" is the same, while "obsolete
platting" appears to be equivalent to "faulty lot layout in relation to size, adequacy,
accessibility,or usefulness.""Deterioration of structures or improvements"is the same or
similar to "a substantial number of deteriorated or deteriorating structures" and
"deterioration of site or other improvements."There is also an additional qualification that
the provisions of Idaho Code Section 50-2oo8(d)shall apply to open areas.
Idaho Code Section 50-2008 primarily addresses the urban renewal plan approval process
and Idaho Code Section 50-20o8(d)(4) sets forth certain conditions and findings for
agency acquisition of open land as follows:
the urban renewal plan will afford maximum opportunity, consistent with
the sound needs of the municipality as a whole, for the rehabilitation or
redevelopment of the urban renewal area by private enterprise: Provided,
that if the urban renewal area consists of an area of open land to be acquired
by the urban renewal agency, such area shall not be so acquired unless (1)
if it is to be developed for residential uses, the local governing body shall
determine that a shortage of housing of sound standards and design which
is decent, safe and sanitary exists in the municipality; that the need for
4 The statutes governing urban renewal set forth in Title 50,Chapters 20 and 29,Idaho Code,do not
provide any guidance as to the definition of"predominantly." It is assumed for purposes of this Study that
predominantly means more than 50%of the Study Area is"open land." Less than 25%of the parcels
within the Study Area could conceivably fall within an open land designation.While the Study Area
includes parcels that likely qualify as"open land,"making the findings pursuant to Idaho Code Section 50-
2903(8)(c)is not required.
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housing accommodations has been or will be increased as a result of the
clearance of slums in other areas; that the conditions of blight in the area
and the shortage of decent, safe and sanitary housing cause or contribute
to an increase in and spread of disease and crime and constitute a menace
to the public health, safety, morals, or welfare; and that the acquisition of
the area for residential uses is an integral part of and essential to the
program of the municipality,or(2)if it is to be developed for nonresidential
uses, the local governing body shall determine that such nonresidential
uses are necessary and appropriate to facilitate the proper growth and
development of the community in accordance with sound planning
standards and local community objectives, which acquisition may require
the exercise of governmental action, as provided in this act, because of
defective or unusual conditions of title, diversity of ownership, tax
delinquency, improper subdivisions, outmoded street patterns,
deterioration of site, economic disuse, unsuitable topography or faulty lot
layouts, the need for the correlation of the area with other areas of a
municipality by streets and modern traffic requirements, or any
combination of such factors or other conditions which retard development
of the area.
In sum,there is one set of findings if the area of open land is to be acquired and developed
for residential uses and a separate set of findings if the land is to be acquired and developed
for nonresidential uses.
Basically,open land areas may be acquired by an urban renewal agency and developed for
nonresidential uses if such acquisition is necessary to solve various problems, associated
with the land or the infrastructure, that have delayed the area's development. These
problems include defective or usual conditions of title, diversity of ownership, tax
delinquency, improper subdivisions, outmoded street patterns, deterioration of site, and
faulty lot layout. All of the stated conditions are included in one form or another in the
definition of a deteriorated area and/or a deteriorating area set forth in Idaho Code
Sections 50-2903(8)(b) and 50-2o18(g). The conditions listed only in Section 50-
2oo8(d)(4)(2) (the open land section) include economic disuse, unsuitable topography,
and"the need for the correlation of the area with other areas of a municipality by streets
and modern traffic requirements, or any combination of such factors or other conditions
which retard development of the area."
The conclusion of this discussion concerning open land areas is that the area qualifies if
any of the eligibility conditions set forth in Idaho Code Sections 50-2018(g) and 50-
2903(8)(b) apply. Alternatively, the area under consideration qualifies if any of the
conditions listed only in Idaho Code Section 50-2oo8(d)(4)(2) apply.The size of some of
the parcels, the lack of water and sewer facilities in the undeveloped portion of the Study
Area; a nonexistent access and internal street system; an inadequate storm drain system;
and lack of fire protection, are all conditions which delay development of the large
undeveloped properties in the Study Area.
Based on the above analysis, to the extent the Study Area is "predominantly open land,"
which is not a defined term, obsolete platting/faulty lot layout and economic
underdevelopment are conditions found in the Study Area, and therefore, the open land
condition is satisfied.
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Item#23.
Other Relevant Issues:
Agricultural Landowners Concurrence:
The statutory provisions concerning the creation of an urban renewal district prohibit
inclusion of any land used for an agricultural operation without the express written
consent of the property owner.An agricultural operation is broadly defined in Idaho Code
§ 22-4502(2) and means "an activity or condition that occurs in connection with the
production of agricultural products for food, fiber, fuel and other lawful uses..." One
method of determining whether there exists an agricultural operation on a parcel is the
presence of an agricultural property tax exemptions.As of the date of this Eligibility Study,
one parcel, the Kobe property, particularly located in the northwest corner of the Study
Area,maintains assessed values consistent with other agricultural lands and appears,from
a visual inspection, to be an active agricultural operation. As a result, property owner
consent is required prior to final consideration of the proposed district's creation.
CONCLUSION:
Based upon the data and the conditions that exist within the Study Area as noted above,
the Meridian Development Corporation Board and Meridian City Council may determine
that the Northern Gateway Study Area is eligible for the establishment of an urban renewal
district.
lo% Analysis: In addition to the findings reported above, verification that the
assessed value of the proposed Study Area is within the statutory limits is needed. State
Law limits the percentage of values on the combined base assessment rolls that can be
included in urban renewal / revenue allocation districts to lo% of the current assessed
valuation of all taxable property within the City. According to Ada County Assessor
records, the 20206 total certified value for the City of Meridian is $13,230,528,301 (does
not include operating property). This number does not reflect exemptions. Therefore,
taking a more conservative approach, the net taxable value for this calculation is used.
That number is $10,375,837,804. As shown in the analysis in Table 1 the current taxable
value of the entire Study Area is estimated to be $68,832,947• This value then must be
added to the Base Assessed Values of the Downtown District,the Ten Mile District and the
Union District to test for the io%limitation. Given that at this time the City and MDC are
considering the potential creation of an additional urban renewal district (the Linder
URD) and an amendment to the Union URD to add additional area pursuant to Idaho
Code Section 50-2033,we added their assessed values to this analysis to provide decision
makers with the scale of the various districts compared to the statutory limitation. The
analysis for these purposes in presented in Table 1,below. The combined base assessment
roll values remain well below the statutory limit.
Table i
Statutory io%Limitation Analysis
s With House Bill 560(2020)effective July 1,2020,eliminating the property tax exemption for agricultural
land and replacing it with a method to value agricultural land,going forward the method to determine the
existence of an agricultural operation will change.
6 At the time this Study was prepared the 2021 values were not available. It is generally understood the
2021 values will increase;therefore,using the 2020 assessed values may be more conservative than the
current conditions.
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Item#23.
Area Taxable Value Percentage
Total City $10,375,837,804 100%
Downtown URD Base Value $146,334,050 1.41%
Ten Mile URD $ 39,539,125 0.38%
Union URD $2,144,36o 0.02%
Proposed Northern Gateway URD $68,832,974 o.66%
*Proposed Linder URD $11,978,500 0.12%
*Proposed Union District Addition (est.) $3,414,100 0.03%
Total UR Base Assessed Value Percentagej $272,2439109 2.62%
*The MDC Board has considered and accepted the proposed Linder District
Eligibility Study. The MDC Board is anticipated to consider the eligibility of the
proposed Union District Addition in June.
The effect of creating this district on the capacity of the City and MDC to consider future
districts should they choose to do so is also explored. The table below shows there is
capacity to consider additional districts.
Table 2
Remaining Urban Renewal Capacity
Maximum 1o% Limitation $1,037,583,78o 10%
Downtown URD $146,334,779 1.41%
Ten Mile URD $39,539,125 0.38%
Union URD $2,144,36o 0.02%
Proposed Northern Gateway URD $68,832,947 o.66%
Proposed Linder URD $11,996,035 0.12%
Proposed Union District Addition(est.) $3,414,100 0..03%
Available AV within limitation $765,340,671 7.38%
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Item#23.
Exhibit B
MERIDIAN DEVELOPMENT CORPORATION
THE URBAN RENEWAL AGENCY OF THE CITY OF MERIDIAN
RESOLUTION NO. 21-026
BY THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY
OF MERIDIAN, IDAHO, AIK/A THE MERIDIAN DEVELOPMENT CORPORATION:
A RESOLUTION OF THE BOARD OF COMMISSIONERS
OF THE URBAN RENEWAL AGENCY OF MERIDIAN,
IDAHO, ALSO KNOWN AS THE MERIDIAN
DEVELOPMENT CORPORATION, ACCEPTING THAT
CERTAIN REPORT ON ELIGIBILITY FOR CERTAIN
PROPERTY REFERRED TO AS THE NORTHERN
GATEWAY DISTRICT AREA AS AN URBAN RENEWAL
AREA AND REVENUE ALLOCATION AREA AND
JUSTIFICATION FOR DESIGNATING THE AREA AS
APPROPRIATE FOR AN URBAN RENEWAL PROJECT;
TO MAKE ANY NECESSARY TECHNICAL CHANGES TO
THE REPORT; AUTHORIZING AND DIRECTING THE
CHAIR, VICE-CHAIR OR ADMINISTRATOR TO TRANSMIT
THE REPORT AND THIS RESOLUTION TO THE CITY
COUNCIL OF THE CITY OF MERIDIAN REQUESTING ITS
CONSIDERATION FOR DESIGNATION OF AN URBAN
RENEWAL AREA AND SEEKING FURTHER DIRECTION
FROM THE COUNCIL; AND PROVIDING AN EFFECTIVE
DATE.
THIS RESOLUTION, made on the date hereinafter set forth by the Urban
Renewal Agency of Meridian, Idaho, also known as the Meridian Development
Corporation, an independent public body, corporate and politic, authorized under the
authority of the Idaho Urban Renewal Law of 1965, Chapter 20, Title 50, Idaho Code, as
amended (the "Law") and the Local Economic Development Act, Chapter 29, Title 50,
Idaho Code, as amended (the "Act"), a duly created and functioning urban renewal
agency for Meridian, Idaho, hereinafter referred to as the "MDC";
WHEREAS, on July 24, 2001, the City Council (the "City Council") of the City of
Meridian, Idaho (the "City"), adopted Resolution No. 01-367 establishing MDC pursuant
to the Law;
WHEREAS, on October 8, 2002, the City Council, after notice duly published,
conducted a public hearing on the Meridian Revitalization Plan Urban Renewal Project,
which is also referred to as the Downtown District(the "Downtown District Plan");
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WHEREAS, following said public hearing, the City Council adopted its Ordinance
No. 02-987 on December 3, 2002, approving the Downtown District Plan, making
certain findings and establishing the Downtown District revenue allocation area (the
"Downtown District Project Area");
WHEREAS, the City Council, after notice duly published, conducted a public
hearing on the Ten Mile Road Urban Renewal Plan (the "Ten Mile Plan"). The public
hearing was continued to June 21, 2016, for further testimony;
WHEREAS, following said public hearings, the City Council adopted its
Ordinance No. 16-1695 on June 21, 2016, approving the Ten Mile Plan, making certain
findings and establishing the Ten Mile revenue allocation area (the "Ten Mile Project
Area");
WHEREAS, the City Council, after notice duly published, conducted a public
hearing on the First Amendment to the Meridian Revitalization Plan Urban Renewal
Project ("First Amendment to the Downtown District Plan");
WHEREAS, following said public hearing, the City Council adopted its Ordinance
No. 20-1881 on June 9, 2020, approving the First Amendment to the Downtown District
Plan deannexing certain parcels and making certain findings (collectively, the
Downtown District Plan, and amendments thereto, are referred to as the "Existing
Downtown District Plan," and the Downtown District Project Area, and amendments
thereto, are referred to as the "Existing Downtown District Project Area");
WHEREAS, the City Council, after notice duly published, conducted a public
hearing on the Urban Renewal Plan for the Union District Urban Renewal Project (the
"Union District Plan");
WHEREAS, following said public hearing, the City Council adopted its Ordinance
No. 20-1882 on June 9, 2020, approving the Union District Plan, making certain findings
and establishing the Union District revenue allocation area (the "Union District Project
Area");
WHEREAS, the Existing Downtown District Plan, the Ten Mile Plan, and the
Union District Plan and their project areas are collectively referred to as the "Existing
Project Areas;"
WHEREAS, it has become apparent that additional property, most of which is
located within the City, and a portion of which is located within the City's area of
operation within unincorporated Ada County, may be deteriorating or deteriorated and
should be examined as to whether such an area is eligible for an urban renewal project;
WHEREAS, in 2021, Kushlan I Associates commenced an eligibility study and
preparation of an eligibility report for an area 126.226 acres in size, approximately 77
acres of which is currently located within the boundaries of the Existing Downtown
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District Project Area, which area is subject to a de-annexation. The area is generally
located in the central part of Meridian, northeast of the City's downtown core, and east
of Meridian Road and south of Fairview Avenue extending to Pine Avenue between NE
2nd Street and NE 31d Street, and which area also includes a commercial area east of
Meridian Road fronting Fairview Avenue on the north and a 17.64-acre parcel located
on the northwest corner of Meridian Road and Cherry Lane. The eligibility study area is
commonly referred to as the Northern Gateway District Study Area (the "Study Area");
WHEREAS, MDC has obtained the Northern Gateway Urban Renewal District
(Proposed) Eligibility Report, dated May 2021 (the "Report"), a copy of which is attached
hereto as Exhibit A, which examined the Study Area, which area also included real
property located within unincorporated Ada County, for the purpose of determining
whether such area was a deteriorating area and/or a deteriorated area as defined by
Idaho Code Sections 50-2018(8), (9) and 50-2903(8);
WHEREAS, pursuant to Idaho Code Sections 50-2018(8), (9) and 50-2903(8),
which lists the definition of deteriorating area and deteriorated area, many of the
conditions necessary to be present in such an area are found in the Study Area;
WHEREAS, the effects of the listed conditions cited in the Report result in
economic underdevelopment of the areas, substantially impairs or arrests the sound
growth of a municipality, constitutes an economic or social liability, and is a menace to
the public health, safety, morals, or welfare in its present condition or use;
WHEREAS, the Report includes a preliminary analysis concluding the base
assessment roll value for the Study Area along with the base assessment rolls for the
Existing Project Areas and any proposed revenue allocation areas or amendments
thereto, do not exceed 10% of the current assessed valuation of all taxable property
within the City;
WHEREAS, under the Act, a deteriorated area includes any area which is
predominantly open and which, because of obsolete platting, diversity of ownership,
deterioration of structures or improvements, or otherwise, results in economic
underdevelopment of the area or substantially impairs or arrests the sound growth of a
municipality. See Idaho Code § 50-2903(8)(c);
WHEREAS, Idaho Code Sections 50-2018(9), 50-2903(8) and 50-2008(d) list
additional conditions applicable to open land areas, including open land areas to be
acquired by the Agency;
WHEREAS, the Study Area is not "predominantly" open; however, the Report
addresses the necessary findings concerning including open land within any urban
renewal area as defined in Idaho Code Sections 50-2018(9), 50-2903(8)(c), and 50-
2008(d);
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WHEREAS, under the Law and Act, Idaho Code Sections 50-2903(8)(f) and 50-
2018(8) and (9), the definition of a deteriorating area shall not apply to any agricultural
operation as defined in Section 22-4502(2), Idaho Code, absent the consent of the
owner of the agricultural operation except for an agricultural operation that has not been
used for three (3) consecutive years;
WHEREAS, the Report includes a parcel subject to such consent. While the
necessary consent has not been obtained, the consent shall be obtained prior to City
Council consideration of any urban renewal plan;
WHEREAS, Idaho Code Section 50-2018(18) provides that an urban renewal
agency cannot exercise jurisdiction over any area outside the city limits without the
approval of the other city or county declaring the need for an urban renewal plan for the
proposed area;
WHEREAS, the portion of the Study Area lying outside the City limits and within
unincorporated Ada County includes a parcel which is anticipated to proceed through
the formal annexation process of the City;
WHEREAS, though a portion of the Study Area lies outside the City limits,
because that parcel is anticipated to proceed through the voluntary annexation process,
no formal resolution from Ada County, Idaho, has been requested. In the event
annexation of that parcel has not been obtained by the time the City Council considers
approval of a new urban renewal plan, it is anticipated the City would seek to obtain an
agreement with Ada County, Idaho, as required by Idaho Code Section 50-2906(3);
WHEREAS, pursuant to Idaho Code Section 50-2008, an urban renewal project
may not be planned or initiated unless the local governing body has, by resolution,
determined such area to be a deteriorated area or deteriorating area, or combination
thereof, and designated such area as appropriate for an urban renewal project;
WHEREAS, Idaho Code Section 50-2906, also requires that in order to adopt an
urban renewal plan containing a revenue allocation financing provision, the local
governing body must make a finding or determination that the area included in such
plan is a deteriorated area or deteriorating area;
WHEREAS, the MDC Board finds it in the best public interest to accept the
Report.
NOW, THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE BOARD
OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF MERIDIAN, IDAHO,
AS FOLLOWS:
Section 1. That the above statements are true and correct.
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Section 2. That the MDC Board acknowledges acceptance and receipt of the
Report, attached hereto as Exhibit A, recognizing technical changes or corrections
which may be required before transmittal to the City Council for its consideration.
Section 3. That there are one or more areas within the City and within
unincorporated Ada County that are a deteriorating area or a deteriorated area as
defined by Idaho Code Sections 50-2018(8), (9) and 50-2903(8).
Section 4.. That one such area is 126.226 acres in size, approximately 77
acres of which is currently located within the boundaries of the Downtown District, which
area is subject to a de-annexation, and is commonly referred to as the Northern
Gateway District Study Area, as more fully described in the Report. The area studied
consists of both properties located within the City limits as well as within the area of City
impact, in unincorporated Ada County, however, the parcel within unincorporated Ada
County is anticipated to proceed shortly through the formal annexation process of the
City.
Section 5. That the rehabilitation, conservation, and redevelopment, or a
combination thereof, of such area is necessary in the interest of the public health,
safety, and welfare of the residents of the City.
Section 6. That the Chair or Vice-Chair of the MDC Board of Commissioners,
or the Administrator, are hereby authorized to transmit the Report to the Meridian City
Council requesting that the City Council:
a. Determine whether the Study Area identified in the Report qualifies
as an urban renewal project and there is justification for designating the area, as
appropriate, for an urban renewal project;
b. If such designation is made, whether MDC should proceed with the
preparation of an urban renewal plan for the area, which plan may include a revenue
allocation provision as allowed by law;
C. Coordinate with MDC to obtain the required agricultural consent
from the property owner.
Section 7. That this Resolution shall be in full force and effect immediately
upon its adoption and approval.
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PASSED AND ADOPTED by the Urban Renewal Agency of the City of Meridian,
Idaho, also known as the Meridian Development Corporation, on June 9, 2021. Signed
by the Chair of the Board of Commissioners and attested by the Secretary to the Board
of Commissioners, on June 9, 2021.
APPROVED:
By-
Chair of the Board
ATTEST:
i
ecretary
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