2021-08-24 Work Session Joint Meeting with Meridian Development Corporation Item#3.
Joint Meridian City Council - Meridian Development Corporation August 24, 2021.
A Meeting of the Meridian City Council was called to order at 4:30 p.m., Tuesday, August
24, 2021, by Mayor Robert Simison.
Members Present: Robert Simison, Luke Cavener, Treg Bernt, Jessica Perreault, Brad
Hoaglun and Liz Strader.
Members Absent: Joe Borton.
Also present: Chris Johnson, Bill Nary, Cameron Arial, Brian Caldwell, Joe Bongiorno
and Dean Willis.
ROLL-CALL ATTENDANCE
Liz Strader Joe Borton
_X_ Brad Hoaglun _X_Treg Bernt
X Jessica Perreault _X Luke Cavener
_X_ Mayor Robert E. Simison
MERIDIAN DEVELOPMENT CORPORATION ROLL CALL ATTENDANCE PRESENT
_X Dave Winder - Chairman _X—Dan Basalone
_X Diane Bevan _X—Nathan Mueller
_X Kit Fitzgerald
_X_Ashley Squyers -Administrator
ABSENT: Rob McCarvel. Tammy de Weerd. Treg Bernt (City Council)
Simison: Call the meeting to order. For the record is Tuesday, the 24th of August at 4.30
p.m. We will begin today's City Council Work Session joint meeting with Meridian
Development Corporation with roll call attendance for the City of Meridian.
Squyers: For Meridian Development Corporation roll call.
ADOPTION OF AGENDA
Simison: All right. Well, with that we will -- we will go on to our adoption of the agenda.
Bernt: Mr. Mayor?
Simison: Councilman Bernt.
Bernt: I move that we adopt the agenda as published.
Hoaglun: Second.
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Simison: Motion and second to adopt the agenda. Any discussion? If not, all in favor
signify by saying aye. Opposed nay. The ayes have it and the agenda is adopted.
MOTION CARRIED: FIVE AYES. ONE ABSENT.
DISCUSSION TOPICS [Action Item]
1. Draft Urban Renewal Plan for the Northern Gateway Urban Renewal
Project
Simison: First item up is a discussion items, No. 1, Draft Urban Renewal Plan for the
Northern Gateway Urban Renewal Project and I will turn this over to Cameron.
Arial: Mr. Mayor, Members of the Council and Members of the MDC Board, it's good to
be with you. It's time -- it's time to start talking a little bit more about the details of the
plans, particularly the Northern Gateway Urban Renewal Plan, as well as the Civic Block
Urban Renewal Plan and that's really the purpose of the discussion today is to give you
guys a really good update as to where we are in the process, give you a little bit more
meat on the bone as to the plans themselves. Some of the projects that we have identified
within those -- we have our consultants here with us as well to detail some of those
projects. Also talk about the numbers associated with the plans and, then, really to gather
any feedback you have. This is the Council's and the board's opportunity to provide us
as staff that feedback that we need to -- to really put these plans in place and to continue
to move them forward, so that really is kind of the game plan for today. So, we will -- we
will start with the Northern Gateway and -- and, then, move on from there. So, real quick,
just to orient you, kind of drive here a little bit. So, really want to just talk through the
purpose of this plan. You know, this as you know, is a -- is a -- kind of a -- a part of -- a
part of town that -- that continues to need a little love. It needs some additional attention
and, therefore, the purpose of this plan is to continue to focus those efforts of
redevelopment going forward. We really do take a hard look at the transportation
elements in particular. There is also -- in conjunction with our Public Works Department
there is a number of identified Public Works projects that could really help this area of
town. But, more than anything, it's to make it a -- a gateway to both ends of -- of the
downtown. And, then,just this last bullet-- use --truly using, you know, MDCs Destination
Downtown past plan as a foundation, but really let's modernize it, let's -- let's take a look
at really where are the area has gone in the past, you know, some odd years since the
original plan and, then, move forward into the -- move into the new plan. So, I wanted to
kind of give you just a streetscape view of some of this. On the far right it's kind of hard
to see here. Hopefully you can see it more in your packet, but some of the areas that --
that we have identified -- and I think it's this is probably a good place to maybe turn it to
Don, Don if you want to kind of chime in here. Our consultant on the transportation side
of thanks.
Kostelec: Thanks, Cameron. Yeah. Don Kostelec with Vitruvian Planning here in Boise.
Been working in tandem with Ashley and the staff, as well as meeting -- and thanks to
Christy Little and Tom Laws at ACHD to think through some of the streets stuff and your
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utilities department and as Cameron said in that last bullet, we wanted to take the plans
that had been done -- not just -- you had done some downtown cross-section plans to
complement the comp plan and downtown efforts. You have a large CIP and projections
for your utility projects and, then, ACHD about a decade ago did a downtown Meridian
pedestrian and bicycle plan. They are starting to update those about every ten years.
So, you will be due for a refreshing of that and they have changed some street design
concepts and things since then. So, it was an opportunity to talk with them about those
projects. They are starting a design of sidewalks on 2nd 1/2 and 3rd Street both in this
area and to the south to Franklin that will be coming on board in the 2024-2025 range.
So, it was good to discuss that part with them and -- and talk about those, if you want to
go to the next slide. This is the more detailed map from your utilities department of what
they are planning in that area and so in general the blue line is a water main, the green
line is wastewater, and, really, the -- the big red L up on Fairview is a major CIP project.
Those were the really major underground utility projects for this, but what they also
wanted to see was those yellow lines on that map are the utility lines that run on the back
property lines and through alleys of parcels, which are both a maintenance burden, but
also can limit the consolidation of parcels. So, the more the funds from the agency can
help move those utilities out of those alley locations and under the streets, A, easier for
you to maintain; B, less public right of way mainly for ACHD and, C, greater opportunities
for redevelopment, because you don't have this parceling out of parcels with that kind of
stuff. So, the utility elements that are in there mainly reflect those improvements. When
we get above the street level -- and if you can go to the next slide,just a couple examples.
As Cameron said, this area kind of needs a little bit of love and we look at those as kind
of what finishing the street would mean and, essentially, calling that an urban cross
section. So, to the best extent possible this slide that showed the street cross-sections,
we tried to base the cost estimates on those, but as you will see in the bottom left one,
you know, you have some new townhomes there on Fourth Street and to get all that in
and the sidewalks there, you know, the things like the tree buffers and other parts just
weren't attainable. We are not saying go in there, rip those out, and build something new.
In the top one, though, however, if we look at the sidewalks in front of Cole Valley -- and
we all know that the future there is -- is predicated a lot on their plans and master plans,
but those are the types of sidewalks that probably need to be replaced and if you are
redeveloping those parcels that's where you would get those sidewalk buffers and as you
see in the top right slide, just 2nd 1/2 looking north, really, a street that's incomplete and
a discussion with ACHD that I think once you get through this process will be -- you know,
did we -- do they put sidewalks on one side at this stage waiting for redevelopment on the
west side to get something functional, but that's a conversation you will need to have with
them and they are prepared to have as you go through this process. If you want to go to
the next slide, Cameron. Really, the -- you know, the streets, the primary arterials, like
Main and Meridian Road and Fairview and Cherry, for the most part are kind of
constructed, but this is an example -- especially in that northeast parcel of Meridian Road
and Cherry with the Albertsons, as well as the northwest parcel, you have got the Bud
Porter Pathway that comes in north of there and kind of cuts across --ACHD has recently
changed their roadway cross-sections to no longer build the traditional bike lane within
the curb confines and do the pathway type segments. So, that would be the type of thing
that if you were to get redevelopment of that main Albertsons parcel to, then, look to get
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more of a buffered pathway to make that L-shaped connection and link your pathway
system to the land uses and things, that would -- so, in terms of these streets where it's
already that curb, gutter, sidewalk and finished look, that's the only thing we really costed
out as a change. There is something like Main Street, there is just not a lot to change in
its current configuration. So, that's just a little bit of how we develop those and if you want
to go to the next slide, this is our -- careful to say planning level cost estimates. If you
have been on any of your boards approving bids lately, you know, that cost estimates
might as well be written on an etch-a-sketch. So, we used estimates that both from your
bidding, from work the utilities department was doing, as well as working closely with
CCDC just to see how they were estimating just linear footage for a local street, a collector
street, sidewalks, street lighting and other things that would go into that and you will see
with that we put a -- put a pretty good contingency on top of those, just to account for
those things. Where you see the higher numbers per project are generally where you
also have a utility project plan. So, almost just as much going on under the ground as
above the ground, but the total linear feet of the roads in that boundary are about three
miles -- a little less than three miles and 15,000 linear feet. So, again, that was just our
philosophy and background in coming up with those estimates for the capital projects
within the proposed district.
Arial: Thank you, Don. Appreciate that. So, I wanted to turn just a little time now to our
legal advice, Meghan, who helped us craft the plan for this area and, then, kind of close
out with Phil, who helped -- Phil Kushlan, who helped us with the numbers as well. So,
Meghan, did you want to touch on the plan a little bit.
Conrad: Okay. Well, thank you for having us here today and I think this is a great next
step in our process in moving both of these initiatives forward. So, thank you for your
time. First, before you is the Northern Gateway Plan and I believe that actually -- there
was a packet of documents circulated; correct? Everyone got packets? Okay. So, you
do have what is considered to be a full or complete draft of that document. It is in draft
form. There are drafting notes. There are some highlighted provisions and there are
some things that will be changed as a result of this meeting. There is a photo -- let's see.
Cameron, do you know if this presentation is uploaded at all? Okay. I will move forward.
You all are really familiar with the boundaries of the proposed Northern Gateway area.
The de -- there is a significant portion that was de-annexed from your existing downtown
area, plus there are a few parcels that are north of Cherry and Fairview and west and
east of Meridian Road, including a 17 acre parcel that's currently in unincorporated Ada
county. So, when we look at initiating an urban renewal plan we first start with what are
the plan elements and those are outlined in Idaho Code 50-2905 and that provides a
pretty good roadmap as to what our next steps are and what we need to include within
the confines of that document. The first -- and I will just hit these really quickly, because
I know you all have been through this planning process before, but I have highlighted
where in the planning document itself you can find where we have met these plan
elements. The first is a statutory requirement that is a statement describing the total
assessed value of the combined basis estimate roles cannot exceed ten percent of the
total taxable value of the city. So, what we do in calculating that is we take all of the
existing revenue allocation areas, look at their adjusted base assessment rolls, add in the
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projected base assessment for the proposed project area and the proposed amended
area -- that cannot exceed ten percent of your total taxable value. That formula has been
run and you have a significant amount of capacity left. I think you are in about the three
percent range. For purposes of planning, we did use the 2020 certified values. We do
recognize there has been a significant increase in those values in 2021. However, even
with a significant increase that is not going to change the ten percent analysis. You still
are going to fall well within that leeway there. The second -- and that is -- specifically as
found in Section 502.3. The second requirement is a statement listing the kind, number,
and location of all proposed Public Works or improvements in the area -- so the time,
number and location of all the proposed Public Works projects. This is found in two
(Technical audio problems) area of expertise. That is your economic feasibility study, but
it also includes your project list as part of that analysis. The third is an economic feasibility
study. That is attachment number five. Number four -- number four is a detailed list of
estimated contract costs. That is also found in Attachment Five. Afiscal impact statement
showing the impact of the revenue allocation area on the overlapping effect. That is
shown in Section 5.2 -- 502.8 in Attachment Five. The impact is primarily based on a
deferred ability to tap budget capacity increases from new development that is occurring
during that 20 year period. Number six is a description of the methods of financing. All
estimated product costs and the time when related costs or obligations are being incurred.
Again, this is in Section 501-B. How we intend to build the project is there is different
mechanisms and vehicles we can use and that is also in Assessment Five. As you know,
it's based on statutory changes over the past several years for revenue allocation and not
be in place for more than 20 years. So, there is recognition in the plan that the agency
will receive dollars in the year following the formal termination date and this plan will be
adopted by 12/31 this year. The base period is January 1, 2021. The termination date
would be December 31, 2041. Revenues would flow to the agency in 2022. And, then,
that is in Section 800 and, finally, the description of the disposition of assets on
termination. In general, if you don't have a revenue stream, your revenue allocation
proceeds, you're not able to retain real property assets and so there is a provision in the
plan. It typically addresses the disposition of those assets to the city upon termination or
if there is a better public education process at that -- at that time a determination is made.
The third is an economic feasibility study that is Attachment Five. Number four is a
detailed list of estimated project costs. That is also found in Attachment Five. A fiscal
impact statement showing the impact of the revenue allocation area on the overlapping
effect of taxing districts. That is shown in Section 5.2, 502.8, and Attachment Five. The
impact is primarily based on a deferred ability to tap budget capacity increases from new
development that is occurring during that 20 year period. Number six is a description of
the methods of financing, all estimated project costs, and the time when related costs or
obligations are to be incurred. Again, this is in Section 501, which discusses the -- how
we intend to fund these projects and the different mechanisms and vehicles we can use
and mostly is planned as a pay as you go project area and it's also found in Attachment
Five. The requirements also include a required termination date. As you know, based on
statutory changes over the past several years, a revenue allocation area cannot be in
place for more than 20 years. So, there is recognition in the plan that the agency will
receive dollars in the year following the formal termination date. If this plan were to be
adopted by 12/31 of this year the base year would be January 1 , 2021. The termination
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date would be December 31, 2041. Revenues would flow to the agency in 2042. Thank
you. And, then, that is in Section 800. And, then, finally, the description of the disposition
of assets upon termination. In general if you don't have a revenue stream beyond
revenue allocation proceeds you are not able to retain real property assets and so there
is a provision in the plan that typically addresses the disposition of those assets to the
city upon termination or if there is a better public entity to have those assets at that time
the determination is made. Another qualification in the plan is that when you have a parcel
that has been used for an ag operation within the last three years, the property owner has
to provide consent to be included within the district. In this case in this project area there
is a 17 acre parcel that is -- had I believe an ag exemption on it, or for sure has been used
as an agricultural operation. Ag operation under the statute is a defined term and it's
very broad. It doesn't take much to fall within that ambit. So, that consent has been
obtained for that specific personal. Next slide, Cameron. So, in determining the projects
in the project list, the plannings form the basis of a wealth of information and informed
Attachment Five. There is also the city's Comprehensive Plan, Destination Downtown,
conversations with property owners and developers and as well as city and MDC staff.
So, data came from all sources. And, then, I think next we are getting into those Phil's
Attachment Five.
Kushlan: Thank you, Meghan. Again, those of us who have been through this before can
kind of recognize the --the approach that we take here and the first thing that I have done
is try to forecast what the revenue allocation revenue will be over the life of the district
and in doing so you have to make a lot of assumptions, because, you know, you really
don't know at this point what it's going to look like 20 years hence and so what we have
done is tried to forecast what's going to happen to property values in the area absent
anything else occurring and so we basically looked at what's happened in the community
over the last ten years and, then, kind of took a look at that and, then, basically increased
what we have traditionally been looking at for a growth figure and checking off what has
occurred here. So, what we have done is looking at land values escalating at an eight
percent per year pace and improvement values escalating at ten percent per year. That's,
again, given what's gone on here in the last five or ten years, that's really eager
assumption at this point. But as you are looking 20 years into the future, recognizing dips
and so forth in the world of real estate, we thought having that fairly robust amount of
growth assumed going forward is probably unwise in a conservative revenue estimating
scenario and so after five years we reduced that by about half of that. So, we are looking
at beyond that five year period four percent on land and five percent on property and so
we have got that spreadsheet there that shows what basically happens to your valuation
over the 20 year period of the plan. Then we assume that something's going to happen
out there. Somebody is going to build something. So, we plugged in a number of fairly
significant taxable investments over time, which are not all going to happen at once and
we kind of schedule it over a number of years and, then, also assumed in those years
when those major projects were not occurring, that there would be about 500,000 dollars
taxable of investment in the general district on an annual basis that we can't identify. So,
we plug those numbers in and came up with an estimate of about 310 million dollars of
taxable investment in the district over the 22 year life of the -- of the plan and so we,
basically, ran the numbers through our model and concluded that the number would --
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those properties would produce about 35 million dollars in tax increment proceeds over
time. We assumed that about ten percent of the proceeds would be retained by the
agency for administrative purposes and we capped out at 50,000 dollars a year, so we
wound up with about -- a little over 34 million dollars available for project expenses
through the life of the district and I think if you look at the plan, we, again, worked with
various sources that told us, you know, what kinds of projects would be expected there.
We plugged in about four million dollars for the undeveloped parcel that is on the
northeast -- northwest corner of the district. Yeah. There it is. And, then, took a look at
the area which I call the -- kind of the redevelopment part of the district and, again, the
major amount of resources there are dedicated at about 11 million dollars for
transportation. Then there is additional streetscape work probably going to happen there,
about a million dollars worth. Utilities. A number came from the city about 5.2 million.
Hopefully, we are going to see some transit improvements in the area, so we provided
some resources for that. Recognizing the agency's ongoing facade improvement
program, we wanted to make sure that that was covered. Expansion of the historic
lighting districts. Provided resources for property acquisition to provide those
opportunities to consolidate ownerships where small parcels are more difficult to -- to
redevelopment. Wayfinding as -- we see some parking was provided for public plaza is
a significant amount of money. It is there for the parks and open space. Environmental
immediate remediation and planning studies for a total of about 33,900,000 dollars over
the life of the district. Are these numbers the ones that are exactly what we are going to
hit? No. But one of the things that we have learned over the last several years is the
legislation has changed and it requires plans be developed with specificity and so while
we try to be as specific as we can, you don't want to tie your hands too much and so what
we have tried to do is encourage staff to let us know at least those areas in which you
want to spend money over the years, so we have a listing of areas and categories that
will be receiving funds from the new district. Are you stuck with these numbers? No.
Over time the -- the board will have the opportunity to budget annually. Some of these
numbers may go down. Some may go up. The total revenue yield is probably not going
to be exactly what we said it was either and so if there are additional resources --
additional money could be put into these categories. The rule of thumb is if you want to
do it you have to put it on the list, because if it's not on the list you can't do it. If it's on the
list you don't have to do it and so what we tried to do is cast as broad a net as we could
to give as much flexibility to the agency going forward to do the things that at least we
have the ability to understand at this point might be needed and, again, it's fairly important
that these issues be listed here, because you cannot modify the plan going forward. So,
you have to basically say what you are going to do here and be committed to that. So,
guess with that we will be happy to entertain questions about the assumptions that have
driven the revenue estimates and also if you have questions about any of the specifics in
the -- in the project list, I'm sure that the staff could help us out here and can try to find
some focus on those numbers as well. So, happy to answer any question that you might
have at this point.
Strader: Mr. Mayor?
Simison: Council Woman Strader.
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Strader: Maybe it would be helpful to recap a little bit our conversations today. So, I have
met with the Planning Department and with our consultant today and with the Planning
Department probably three or four times and I'm a big believer in developing downtown.
I think that's really important. What I think is important, though -- I don't think it's enough
to say we think there will be a huge increase in value from creating an urban renewal
district, I think we owe it to ourselves and to the city to take it a step further and actually
do the analysis of the return on investment to the city. I mean there is a cost associated
with an urban renewal district. We are forgoing some growth in the future in our tax base.
So, I think it sounded to me like the consulting group would be able to do that analysis for
us and actually take a look at two scenarios, so a scenario where we don't create the
urban renewal district and one using our projections where we do and really compare the
cost associate -- associated with the benefits that come. That's just important to me.
That's just one person. But I would really like to see that. And, then, I would like to hear
from the Finance Department at least if this doesn't -- because of the SH-39 that -- with
the 80 percent of new construction once the URD sunsets, that this doesn't -- they could
opine on this and that it doesn't imperil our long term financial plan. Those are just two
follow-ups that I have. I think intuitively -- and everything points to this being a great tool
to use in this area. I just -- I think for me personally I want to see that -- that additional
analysis as well.
Simison: Councilman Strader, if I could answer the second one for you. Just as a general
rule for our long range CFP planning process, we do not -- we do not add in any
anticipated dollars for an urban -- retiring urban rural district for our purposes. So, at least
from a very practical standpoint I would say there is no impact. The other part of it, though,
would be, you know, how is pre-development applied into our new construction roles.
That would be the question that maybe is the most relevant, because simple math 20
years, three percent, you can't write these dollars -- even through just the urban renewal
TIF dollars would not equal what the city could generate from our budget overall, unless
new construction is the component that is added into it and I don't know how that's
applied. So, through the -- that would be the analysis that I would say would need to be
-- to help answer your question.
Strader: Yeah. So, I have done a little -- a little bit of preliminary discussion on it and I
think you are right, I think what we need to do is take a look at the new construction
aspects. I think even if we don't count on the new construction portion I still think there is
-- there is an opportunity cost to doing nothing and there is also a cost -- incremental cost
associated with the improvements that would take place if we did not do an urban renewal
district. So, Cameron and I have talked about those assumptions I think in the market
and that this area wouldn't redevelop in this robust way on its own and I do -- I do buy
into that and we have had a lot of discussion today and they can maybe go through what
they are planning to do, but I do think it's important to look at the full picture, instead of
just saying, okay, we are going to have -- this is going to be great, we are going to have
this huge increase in value from doing this. I think it's important to say, okay, here is the
cost associated with what we are doing and so here is the return to frame the decision,
because to me I just think looking at a value in isolation is not sufficient to frame the
decision.
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Simison: Additional questions, comments on that topic? Dave.
Winder: Mr. Mayor -- can you hear me now. Concern from MDC standpoint on that is I
don't know that that analysis is in the scope of work that we have with you. Would that
be something that would be in addition to what we have done or what we have with you?
Kushlan: Specifically it's not included. But, again, I have done some work on it already
today and it's -- I don't think -- depending on the level of detail you want and specificity in
the analysis, because whatever you do is going to be a forecast. I really don't know what's
going to happen. What I have done today is put together a model that takes the City of
Meridian's current property tax levy and inflates that out at eight percent per year, which
is the maximum that your capacity is allowed under state law with a recent change and
that produced X amount of money out 20 years and, then, basically, took this analysis
and looked at the 688 million dollar increase, which is the increment and, then, took 80
percent of that and, then, multiplied that against your -- the city's tax rate, which is .0022
and that produced an additional tax capacity eligible for the city to access in 2042 of about
1.2 million dollars and so there -- there was a bump and in our conversation with Council
Members Strader, we looked at the post-urban renewal benefit. So, we ran that out
another 20 years and what does that look like and that -- you know, ultimately out there
in -- in 2016 when we are all sitting around this table again discussing this, it would
produce about an additional four million dollars tax capacity to the City of Meridian. That's
basically a fact that we were able to access the incremental value, not only in terms of
the new construction value in an urban renewal, they also allow you to capture the
inflationary value during the term of the district and so that produced -- those two things
together produced quite a bit of money that you would apply the tax rate against. Is the
tax rate going to be the same in -- over that life? No, it's going to change. Did some
sensitivity analysis looking at higher tax rates and lower tax rates, but in no place did it
ever go negative and so if that level of analysis is what you need, then, I think that's easily
done. If you want specificity that's going to pass more rigorous analysis, then, I think we
would have talked about that.
Strader: Mr. Mayor?
Simison: Council Woman Strader.
Strader: It sounds like you did it. Thank you so much. No. I appreciate that. I think that
-- I think that's really helpful information for us, right, and so what that says to me is --
wow, you are quick. Oh, my goodness. Look at that. No. I think this is fantastic, because
I think it shows not only do we think something good will happen in the future from a value
perspective, but from where we are sitting today around our financial decision in terms of
-- we are not foregoing growth in our tax base as a tradeoff, we are making this decision,
and so I think from a long-term perspective -- and this is a long-term decision --that thank
you for doing that, because I think that -- that really helps at least me get comfortable with
that decision, so thanks. Awesome.
Simison: Any additional questions, comments?
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Cavener: Mr. Mayor?
Simison: Councilman Cavener.
Cavener: I'm not sure who I'm posing this question to, so it's I guess to the field and I will
let kind of whoever responds respond. The conversation talked about -- a lot about that
this is an area that is in need of a little more love. So, I like that we are reframing it that
way. I'm just curious -- there is a -- there is a lot of stakeholders in this area and I'm just
curious what has the engagement been with that group or when is that part going to
happen? When are we going to communicate with our residents and our business owners
what is being proposed and what's the response been if we have already been doing
that?
Squyers: Mr. Mayor?
Simison: Yes, Ashley.
Squyers: We have been having ongoing conversations with larger property owners -- we
are having -- can you hear me? Okay. We are having conversations with larger property
owners because we know there are several redevelopment opportunities working on
plans right now. So, we are keeping them appraised as to what our plans are, what we
are trying to achieve, what that looks like, what our schedule is. We are having a State
of the Downtown on October 1 and there will be a fairly significant presentation on the
new URD, so we are inviting everyone within the proposed area -- all businesses, all
residents, all property owners, because they are not necessarily the same and we will be
presenting on this and -- and, hopefully, being able to answer their questions. We will
have fliers. We will have additional information for them to take. And, then, we will be
available for questions afterwards as well.
Arial- And if I might add just real quickly, the -- there is also this process. So, this is a
major component of that, you know, public record, public process. We will also have the
presentation of the formal plan. The three readings and so on. So, we do anticipate a
fairly robust public outing.
Simison: Any further questions regarding item one? Or comments?
Conrad: Mr. Mayor, I have one more slide to go through with some wildcards that are out
there. Cameron. Okay. So, there is -- there is two overlain issues as well that we have
to consider as we formalize this effort moving forward and the first, as I mentioned, the
17 acre parcel is currently located in unincorporated Ada county. This concept is
premised on the fact that that will be annexed into the city and that ordinance adopted
prior to this ordinance coming down the track. So, we are closely monitoring that situation.
To the extent one or the other kind of falls off schedule, that, you know, could be impacted
to how we move forward. The second point is based on legislative changes over the last
couple of years there is now -- the highway district is able to retain its portion of the levy
on increment, unless there is an agreement entered into between the highway district and
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the urban renewal agency. Those conversations between MDC and ACHD are occurring.
That is moving forward. But that's just another additional nuance piece that we have to
consider moving forward. So, that's all I had on this one.
2. Draft First Amendment to the Urban Renewal Plan for the Union
District Urban Renewal Project
Strader: Thank you. Any questions? Okay. Great. Well, then, let's move on to item two,
Draft First Amendment to the Urban Renewal Plan for the Union District Urban Renewal
Project.
Arial: Excellent. Thank you, Mr. Mayor, Members of the Council and Board. So, this --
this section of town you are -- you are already very well aware of, the civic block, and now
this is just the addition of the -- the north -- we will call it the northeast portion of that for
another addition to the existing district. So, this is an actual de-annexation from the old
district and now an annexation into the new civic block district, so -- thank you, Don. So,
with that we will -- we will turn this back over to Meghan as well. There is a little bit
different nuance, because this is an annexation into an already existing district, so,
Meghan, do you want to take it?
Conrad: Sure. Thanks, Cameron. So, you will see a slide similar to the Northern
Gateway slide where we have outlined what the plan requirements are. This is a first
amendment to your Union District project area and so what the --what the --the approach
that we have taken is -- is identifying those sections that in your Union District plan that
will be changed as a result of this first amendment effort. We still have to look at the plan
requirements and elements that are set forth in 50-2905 and on your screen, again,
identified the sections where we have made tweaks to the original plan pursuant to this
amendment. I -- in the -- in the first, again, we have updated that ten percent analysis
and that's in -- that's in the -- there is -- in the body of that first amendment you will just
see the limited section and the texts that are changing and that's found in an amendment
to 502.3. There is some tweaks to the project list and how that's explained in the plan
narrative. There has been a few updates there as a result of some proposed new
improvement projects within that 1.461 acre annexation that we are talking about. So,
that's an amendment in 2-301 and also Attachment Five. And what we have done -- so,
the original Union District plan had an economic feasibility study that was premised on a
certain number of assumptions. What has been done is an update of that, recognizing
existing conditions and perhaps changing some of the assumptions from -- that were
underlying that original, but also forecasting from here forward and identifying what new
growth and development is anticipated to occur in that annexation area and adding that
into the calculation. So, there is that supplement to the economic feasibility study, which
we are referring to as Attachment 5-A. The fiscal impact statement -- there has just been
a few minor tweaks to that to recognize updated certified levy rate analysis and
assumptions moving forward on that front and, then, you know, finally, I think it's important
to note that this first amendment does not extend the duration of the plan. That plan is
still 20 years from the adoption of the Union District project area. This amendment does
not make it go longer. All right. Next slide, Cameron. So, for this particular project area
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Item#3. August 24,2021
Page 12 of 15
the Union District area plan was adopted post July 1 , 2019, which means that a new
statutory provision is now in play, which, essentially, stands for the proposition that you
can't amend a post July 1, 2016, plan without risk of resetting the base and when you
reset the base, obviously, you eliminate your revenue stream going forward. There are
four exceptions in that statutory provision that are not considered a modification of the
plan under that statute and one of them is the annexation of area pursuant to another
statutory reference 50-2033. 50-2033 says that you have a one-time opportunity to take
in up to ten percent of the geographic area of-- the existing revenue allocation area. So,
the Union District project was originally 16 acres. Ten percent of that is 1.6. Well, we are
contemplating an annexation size of just 1.461 acres. So, it's a very small annexation.
Similar to the Northern Gateway effort, there have been communications -- or the project
list was derived, essentially, from looking at the city's Comprehensive Plan, Destination
Downtown, conversations with city and MDC staff, as well as property owners and
developers in that project area. Vitruvian did not conduct a planning study in this area,
but that is -- that's okay, because we are only taking in a portion of the right of way on
Idaho and some of that analysis is contained within your city planning documents and
within the knowledge of city staff, so that's -- that's why they are not related to this project
area. So, the next two slides will jump into Phil's Attachment 5-A.
Kushlan: Thank you, Meghan. Again, on this one we kind of had to launch off of the
adopted plan for the Union District that the Council adopted last year and so what we did
was we basically restated the elements of the plan that were there and, then, kind of
added the -- the new addition, which is basically is only 11 tax parcels, which is very very
small and so we updated that by basically bringing forward the -- the assumptions that I
described in the Northern Gateway and bringing those into this plan as well, so that the
two plans are basically being driven by the same assumptions. We basically forecast
what the union block -- original union block people said they were going to do and, then,
added some level of taxable investment for the new block as well and so with that
machination we came up with about a total of 28 million dollars to spend over the -- the
remaining 19 years now of the district and so one of the major components, if you recall
in your district was participation in the potential civic center on the civic block site. So,
that was in the plan and so we left that there and, then, we added a substantial component
for parking and then, provided resources for open space, property acquisition,
environmental remediation, so forth, again, under the theory that you wanted to provide
a checklist of areas that you might want to be called upon to invest in during the 20 year
life of the project. So, that is what we have done. The other question that might come up
is given the -- the small nature of the project, is this likely to take 20 years to do and
maybe, maybe not, and -- but as Meghan indicated, now through legislative change you
have a maximum 20 year life on your project and in the good old days you might be able
to go amend the plan and extend the termination date, which can't do that anymore and
so also you have to be specific in terms of what you are going to do in the plan and so
that goes back into first the list of projects that we have here. If at some point at ten or
15 years into the process you have basically exhausted your list of activities and you can't
add anymore, then, basically, what you are facing to do is an early termination of the
district. Since you have the ability to terminate early, but you don't have the ability to
extend, we have basically brought forth the position that you should adopt it to the full
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Joint Meridian City Council-Meridian Development Corporation
Item 43. August 24,2021
Page 13 of 15
length of the authority and, then, recognizing that at some point in the future you may find
yourself in a situation where you would want to pursue an early termination. So, that's
kind of how we dealt with that 20 year issue and -- and is there really enough work there
to last 20 years and maybe, maybe not, but that will be a discretionary act on the part of
the agency of the Council. So, with that I will be happy to answer any questions that you
might have.
Strader: Mr. Mayor?
Simison: Council Woman Strader.
Strader: Yeah. That was my main question or concern previously was if for some reason
that community center didn't happen or some of these improvements did not happen,
what would happen with the length of the term of the URD. I guess my only follow-up
question on that would be --you just said it's discretionary. Does it happen automatically?
Does MDC recognize that that has taken place and, then, notifies the city and we shorten
it or how does that -- how does that mechanism actually work to end one early?
Kushlan: Pardon my predilection to give legal advice. I will defer to Counsel.
Conrad: No. Thank you, Council Woman Strader. That -- that's a great question and,
you know, the statute addresses a lot of components, but it doesn't address -- address
every scenario, but there are some limited provisions in the statute that address the
termination process and that termination process is commenced by the agency board.
They would have to adopt a resolution of intent to terminate. I do think, because the
impact of going out of a district are so significant, if we are nearing that time period
oftentimes you will find a city council and -- and agency boards working very closely
together to kind of make that determination as to what works best for both.
Strader: And, then, I guess my only other question -- I did see the city contribution, which
I guess is an assumption, because we have not approved any kind of budgetary spending
or a community center, but I did see the 3.8 million dollars and, then, on the previous slide
I saw a six million dollar figure, so I was just curious -- curious what the delta was there,
community center construction 6.4 million -- I guess to that -- and, then, there is our
contribution. Net project group -- anyway, maybe just a follow up.
Kushlan: I think the -- the issue was -- and this got a little complicated, because of the
city's contribution coming into that in terms of the financial model. We wanted to
recognize -- at least, again, going back to the original adoption -- that contribution was
recognized in that plan and so if we are going to --to amend the plan, we wanted to make
sure that we kept as much of the plan whole as we could. We were advised there was
some conversation about the contribution expanding from three to three-eight, but the --
the expenditure side of what's the -- it's really going to cost was where that other number
came from. So, it's a -- basically a money in, money out kind of situation and, again, we
put the -- the city's contribution not in the assured column, because until the actual
agreement is signed or resources are provided, it's one of those speculative issues that
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Item 43. August 24,2021
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we wanted to make sure, back to our specificity requirement, has got as much including
in that listing as we could. So, I don't think there is anybody suggesting this is an
obligation on your part, but it's a pathway to recognize the -- at least the preliminary
conversations that had occurred.
Strader: Thank you.
Simison: Is there more presentation? I know we kind of stopped -- we are good? Okay.
Any further questions or comments?
Conrad: Mr. Mayor?
Simison: Yes, Meghan.
Conrad: One more slide. Similar to the Northern Gateway, we have to also address the
ACHD agreement only with regard to the annexation piece. So, there does not have to
be an ACHD agreement concerning the Union District, but there would need to be one
concerning the annexation area and that's the final point.
Simison: Thank you. Council, any additional questions or comments? MDC Board?
Then do I have a motion? Or final comments from staff?
Arial: Maybe just really quickly, Mr. Mayor and Members of the Board, it's been really
good to be in front of you --
Johnson: Cameron, we can't hear you. If you could grab the mic.
Arial: It's been really good to be in front of you. I don't want to belabor this, but just really
appreciate the opportunity. You know, there is a lot going into these things. We are
working fast and furious, but we feel that these are really moving forward on good footing
and we are making good progress with property owners and others to -- to really make
these steps forward in our downtown. So, really appreciate the opportunity today.
Simison: Thank you. With that do I have a motion?
Bernt: Mr. Mayor?
Simison: Councilman Bernt.
Bernt: I move that we adjourn the meeting.
Cavener: Second the motion.
Simison: Motion and second the adjourn the meeting. All in favor signify by saying aye.
Opposed nay. The ayes have it. We are adjourned.
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Joint Meridian City Council-Meridian Development Corporation
August 24,2021
Page 15 of 15
MOTION CARRIED: FOUR AYES. ONE ABSENT.
MEETING ADJOURNED AT 5:25 P.M.
(AUDIO RECORDING ON FILE OF THESE PROCEEDINGS)
9-7-2021
MAYOR ROBERT E. SIMISON DATE APPROVED
ATTEST:
CHRIS JOHNSON - CITY CLERK
Page 119
CITY COUNCIL WORK SESSION/JOINT MEETING WITH
THE MERIDIAN DEVELOPMENT CORPORATION
City Council Chambers, 33 East Broadway Avenue Meridian, Idaho
Tuesday, August 24, 2021 at 4:30 PM
Minutes
MERIDIAN CITY COUNCIL ROLL CALL ATTENDANCE
PRESENT
Councilwoman Liz Strader
Councilman Brad Hoaglun
Councilman Treg Bernt
Councilwoman Jessica Perreault
Councilman Luke Cavener
Mayor Robert E. Simison
ABSENT
Councilman Joe Borton
MERIDIAN DEVELOPMENT CORPORATION ROLL CALL ATTENDANCE
PRESENT
Dave Winder - Chairman
Dan Basalone
Diane Bevan
Nathan Mueller
Kit Fitzgerald
ABSENT
Rob McCarvel
Tammy de Weerd
Treg Bernt (City Council)
ADOPTION OF AGENDA Adopted
DISCUSSION TOPICS \[Action Item\]
1. Draft Urban Renewal Plan for the Northern Gateway Urban Renewal Project
2. Draft First Amendment to the Urban Renewal Plan for the Union District Urban
Renewal Project
ADJOURNMENT 5:25 pm
7/tem 77
E IDIAN
'aAHO
AGENDA ITEM
ITEM TOPIC: Draft Urban Renewal Plan for the Northern Gateway Urban Renewal Project
Page 2
Item#1.
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Memo to Meridian City Council and
Meridian Development Corporation Board of Commissioners
Request to Include Topic on Joint City Council - Meridian Development Corporation Agenda
From: Cameron Arial, Community Development Meeting Date: August 24, 2021
Director, City of Meridian
Ashley Squyres,Administrator, Meridian
Development Corporation
Presenter: Cameron Arial Estimated Time: 20 minutes
Topic: Draft Urban Renewal Plan for the Northern Gateway Urban Renewal Project
Recommended City Council/Meridian Development Corporation Action
Review and provide input to the Draft Urban Renewal Plan for the Northern Gateway Urban
Renewal Project.
Background
The Second Amendment to the Meridian Revitalization Plan, providing for the deannexation of the
Northern Gateway area from the original downtown Meridian Revitalization District ("original
District"),was approved by the City Council and Meridian Development Corporation ("MDC")
Board of Directors, and formally adopted on July 13, 2020. On July 6, 2020, Council accepted the
Eligibility Report for the proposed Northern Gateway District and directed MDC to prepare an
urban renewal plan for the area.
The proposed Northern Gateway Urban Renewal Plan ("Plan") encompasses 150 parcels within
126.226 acres.Approximately 77 acres, 133 parcels, were deannexed from the original District.
The process to prepare the Plan began with identification of needed infrastructure improvements
as well as potential projects that may be funded through future tax increment generated by
development and redevelopment of properties within the proposed Northern Gateway District.
The economic feasibility study (Attachment 5) estimates a total tax increment revenue of
$35,085,665 to be generated over the 20-year life of the Plan, based on projected private
investment of$310,000,000.
The projected revenue is sufficient to fund the proposed $33,925,000 in public improvements
cited in the Plan. The figures above were determined using the following assumptions:
• Annual land value increase of 8% for five years, then 4% for remaining life of the
district
• Improvement value increase of 10% for five years,then 5% for remaining life of
the district
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Item#1.
• Tax rate is reduced 10% and held constant throughout the life of the district
• Tax rate does not include levies such as voter-approved bonds/levies,judgment
levies, or school district plant/supplemental levies pursuant to Idaho code 50-
2908
Future Actions
Following feedback and direction, MDC will finalize the Plan. The remainder of the timeline is
summarized below:
August- September
• Circulate Northern Gateway Urban Renewal Plan
• Intergovernmental Agreement negotiated and approved between MDC and Ada County
Highway District
• MDC Approval of Plan
October
• Public Noticing Period
• Planning and Zoning Commission Validates Northern Gateway Urban Renewal Plan
Conformity with City Comprehensive Plan
• Intergovernmental Agreement negotiated and approved between MDC and Ada County
November- December
• Three Ordinance Readings
• Public Hearing
• Final Council Adoption of Plan
Attachment:
Draft Urban Renewal Plan for the Northern Gateway Urban Renewal Project
2
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Item#1.
(Option A)
URBAN RENEWAL PLAN FOR THE
NORTHERN GATEWAY DISTRICT URBAN RENEWAL PROJECT
MERIDIAN URBAN RENEWAL AGENCY
(also known as Meridian Development Corporation)
CITY OF MERIDIAN, IDAHO
Ordinance No.
Adopted
Effective
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Item#1.
TABLE OF CONTENTS
Page
100 INTRODUCTION.............................................................................................................. 1
101 General Procedures of the Agency ......................................................................... 4
102 Procedures Necessary to Meet State and Local Requirements: Conformance with
Idaho Code Sections 50-2008 and 50-2906............................................................ 5
103 History and Current Conditions of the Area........................................................... 6
104 Purpose of Activities............................................................................................... 7
105 Open Land Criteria ................................................................................................. 9
200 DESCRIPTION OF PROJECT AREA............................................................................. 10
300 PROPOSED REDEVELOPMENT ACTIONS................................................................ 10
301 General.................................................................................................................. 10
302 Urban Renewal Plan Objectives ........................................................................... 13
303 Participation Opportunities and Agreements........................................................ 14
303.1 Participation Agreements.......................................................................... 14
304 Cooperation with Public Bodies........................................................................... 16
305 Property Acquisition............................................................................................. 17
305.1 Real Property ............................................................................................ 17
305.2 Personal Property...................................................................................... 19
306 Property Management.......................................................................................... 19
307 Relocation of Persons (Including Individuals and Families), Business Concerns,
and Others Displaced by the Project..................................................................... 19
308 Demolition, Clearance and Site Preparation......................................................... 19
309 Property Disposition and Development................................................................ 20
309.1 Disposition by the Agency........................................................................ 20
309.2 Disposition and Development Agreements .............................................. 20
309.3 Development by the Agency..................................................................... 22
310 Development Plans ............................................................................................... 22
311 Personal Property Disposition.............................................................................. 22
312 [Reserved]............................................................................................................ 22
313 Participation with Others ...................................................................................... 23
314 Conforming Owners.............................................................................................. 23
315 Arts and Cultural Funding .................................................................................... 23
400 USES PERMITTED IN THE PROJECT AREA.............................................................. 24
401 Designated Land Uses........................................................................................... 24
402 [Reserved]............................................................................................................. 24
403 Public Rights-of-Way........................................................................................... 24
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Item#1.
404 Other Public, Semi-Public, Institutional, and Nonprofit Uses.............................. 25
405 Interim Uses.......................................................................................................... 25
406 Development in the Project Area Subject to the Plan........................................... 25
407 Construction Shall Comply with Applicable Federal, State, and Local Laws and
Ordinances and Agency Development Standards................................................. 26
408 Minor Variations................................................................................................... 26
409 Nonconforming Uses............................................................................................ 27
410 Design Guidelines for Development under a Disposition and Development
Agreement or Owner Participation Agreement.................................................... 27
500 METHODS OF FINANCING THE PROJECT ............................................................... 28
501 General Description of the Proposed Financing Method...................................... 28
502 Revenue Allocation Financing Provisions ........................................................ 28
502.1 Economic Feasibility Study...................................................................... 30
502.2 Assumptions and Conditions/Economic Feasibility Statement................ 30
502.3 Ten Percent Limitation ............................................................................. 32
502.4 Financial Limitation.................................................................................. 32
502.5 [Reserved]................................................................................................ 34
502.6 Participation with Local Improvement Districts and/or Business
Improvement Districts .............................................................................. 34
502.7 Issuance of Debt and Debt Limitation...................................................... 34
502.8 Impact on Other Taxing Districts and Levy Rate..................................... 35
503 Phasing and Other Fund Sources.......................................................................... 37
504 Lease Revenue, Parking Revenue, and Bonds...................................................... 38
505 Membership Dues and Support of Community Economic Development ............ 38
600 ACTIONS BY THE CITY AND OTHER PUBLIC ENTITIES...................................... 38
601 Maintenance of Public Improvements..................................................................40
700 ENFORCEMENT.............................................................................................................40
800 DURATION OF THIS PLAN, TERMINATION, AND ASSET REVIEW.................... 40
900 PROCEDURE FOR AMENDMENT OR MODIFICATION.......................................... 41
1000 SEVERABILITY.............................................................................................................. 42
1100 ANNUAL REPORT AND OTHER REPORTING REQUIREMENTS.......................... 42
1200 APPENDICES, ATTACHMENTS, EXHIBITS, TABLES............................................. 42
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Item#1.
Attachments
Attachment 1 Boundary Map of Northern Gateway District Urban Renewal Project Area
and Revenue Allocation Area
Attachment 2 Legal Description of Northern Gateway District Urban Renewal Project
Area and Revenue Allocation Area
Attachment 3 Private Properties Which May be Acquired by the Agency
Attachment 4 Map Depicting Expected Land Use and Current Zoning Map of the Project
Area
Attachment 5 Economic Feasibility Study
Attachment 6 Agricultural Operation Consent
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Item#1.
100 INTRODUCTION
This is the Urban Renewal Plan (the "Plan") for the Northern Gateway District Urban
Renewal Project(the "Project") in the city of Meridian(the "City"), county of Ada, state of
Idaho. Attachments 1 through 6 attached hereto (collectively, the "Plan Attachments") are
incorporated herein and shall be considered a part of this Plan.
The term"Project" is used herein to describe the overall activities defined in this Plan
and conforms to the statutory definition of an urban renewal project. Reference is specifically
made to Idaho Code Sections 50-2018(10) and 50-2903(13) for the various activities
contemplated by the term"Project." Such activities include both private and public development
of property within the urban renewal area. The Northern Gateway District Project Area is also
referred to as the "Project Area" or the "Revenue Allocation Area."
This Plan was prepared by the Board of Commissioners (the "Agency Board") of the
Meridian Urban Renewal Agency, also known as Meridian Development Corporation(the
"Agency" or"MDC"), its consultants, and staff, and reviewed and recommended by the Agency
pursuant to the Idaho Urban Renewal Law of 1965, Chapter 20, Title 50, Idaho Code, as
amended(the "Law"), the Local Economic Development Act, Chapter 29, Title 50, Idaho Code,
as amended(the "Act"), and all applicable local laws and ordinances.
Idaho Code Section 50-2905 identifies what information the Plan must include with
specificity as follows:
(1) A statement describing the total assessed valuation of the base assessment roll of
the revenue allocation area and the total assessed valuation of all taxable property
within the municipality;
(2) A statement listing the kind, number, and location of all proposed public works or
improvements within the revenue allocation area;
(3) An economic feasibility study;
(4) A detailed list of estimated project costs;
(5) A fiscal impact statement showing the impact of the revenue allocation area, both
until and after the bonds are repaid, upon all taxing districts levying taxes upon
property on the revenue allocation area;
(6) A description of the methods of financing all estimated project costs and the time
when related costs or monetary obligations are to be incurred;
(7) A termination date for the plan and the revenue allocation area as provided for in
Section 50-2903(20), Idaho Code. In determining the termination date, the plan
shall recognize that the agency shall receive allocation of revenues in the calendar
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Item#1.
year following the last year of the revenue allocation provision described in the
urban renewal plan; and
(8) A description of the disposition or retention of any assets of the agency upon the
termination date. Provided however, nothing herein shall prevent the agency
from retaining assets or revenues generated from such assets as long as the agency
shall have resources other than revenue allocation funds to operate and manage
such assets.
This Plan includes the above information with specificity.
The proposed development and redevelopment of the Project Area as described in this
Plan conforms to the City of Meridian Comprehensive Plan (the "Comprehensive Plan"),
adopted by the Meridian City Council (the "City Council") on December 17, 2019,by
Resolution No. 19-2179. The Agency intends to rely heavily on any applicable City zoning and
design standards. This Plan also conforms to the goals set forth in Destination: Downtown,
which is a vision plan for the long-term future of the downtown area of the City, which seeks to
establish downtown as a premier destination and home to local business.
This Plan is subject to the Plan modification limitations and reporting requirements
set forth in Idaho Code Section 50-2903A. Subject to limited exceptions as set forth in
Idaho Code Section 50-2903A, if this Plan is modified by City Council ordinance, then the
base value for the year immediately following the year in which modification occurs shall
include the current year's equalized assessed value of the taxable property in the revenue
allocation area, effectively eliminating the Agency's revenue stream.
A modification shall not be deemed to occur when "[t]here is a plan amendment to
make technical or ministerial changes to a plan that does not involve an increase in the use
of revenues allocated to the agency." Idaho Code § 50-2903A(1)(a)(i). Annual adjustments
as more specifically set forth in the Agency's annual budget will be required to account for
more/less estimated revenue and project timing, including prioritization of projects. Any
adjustments for these stated purposes are technical and ministerial and are not
modifications under Idaho Code Section 50-2903A.
This Plan provides the Agency with powers, duties, and obligations to implement and
further the program generally formulated in this Plan for the development, redevelopment,
rehabilitation, and revitalization of the area within the boundaries of the Project Area. The
Agency retains all powers allowed by the Law and Act. This Plan presents a process and a basic
framework within which plan implementation, including contracts, agreements and ancillary
documents will be presented and by which tools are provided to the Agency to fashion, develop,
and proceed with plan implementation. The Plan has balanced the need for flexibility over the
twenty (20)-year timeframe of the Plan to implement the improvements identified in Attachment
5, with the need for specificity as required by Idaho Code Section 50-2905. The Plan narrative
addresses the required elements of a plan set forth in Idaho Code Section 50-2905(1), (5), (7) and
(8). Attachment 5, together with the Plan narrative, meet the specificity requirement for the
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required plan elements set forth in Idaho Code Section 50-2905(2)-(6), recognizing that actual
Agency expenditures are prioritized each fiscal year during the required annual budgeting
process.
Allowed projects are those activities which comply with the Law and the Act and meet
the overall objectives of this Plan. The public-private relationship is crucial in the successful
development and redevelopment of the Project Area. Typically, the public will fund enhanced
public improvements like utilities, streets, and sidewalks which, in turn, create an attractive
setting for adjacent private investment for a mix of uses including residential, (including but not
limited to increased density, and mixed income projects such as affordable and/or workforce
housing), light industrial, commercial facilities, including office and retail, recreational, or other
community facilities.
The purpose of the Law and Act will be attained through the implementation of the Plan.
The priorities of this Plan are:
a. The installation and construction of public improvements, including new local,
collector and arterial streets; improvements to existing roadways and
intersections, including the installation of traffic signals; installation of curbs,
gutters and streetscapes, which for purposes of this Plan, the term"streetscapes"
includes sidewalks, lighting, landscaping, benches, bike racks, public art, signage,
way-finding, and similar amenities between the curb and right-of-way line, and
other public improvements; installation and/or improvements to fiber optic
facilities; improvements to public utilities including water and sewer
improvements, and fire protection systems; removal, burying, or relocation of
overhead utilities; extension of electrical distribution lines and transformers;
improvement of irrigation and drainage ditches and laterals; installation and
construction of pathways; and improvement of storm drainage facilities;
b. The planning, design, construction and reconstruction of local roads and pathways
to support access management, connectivity, and pedestrian mobility;
C. The replanning, redesign, and development of undeveloped or underdeveloped
areas which are stagnant or improperly utilized because of limited traffic access,
underserved utilities, and other site conditions;
d. The strengthening of the economic base of the Project Area and the community
by the installation of needed public improvements to stimulate new private
development providing greater housing density and diversity of housing stock,
increased employment opportunities and economic growth;
e. The provision of adequate land for open space, street rights-of-way and pedestrian
rights-of-way, including pathways along Meridian Road, East Fairview
Avenue/West Cherry Lane, future 3rd Street, and Washington;
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Item#1.
f. The reconstruction and improvement of street corridors to allow traffic flows to
move through the Project Area, along with the accompanying utility connections;
g. The provision of public service utilities, which are necessary to the development
of the Project Area, such as water system improvements, sewer system
improvements, and improvements to the storm drainage facilities;
h. In conjunction with the City, the establishment and implementation of
performance criteria to assure high site design standards and environmental
quality and other design elements which provide unity and integrity to the entire
Project Area, including commitment of funds for planning studies, achieving high
standards of development, and leveraging such development to achieve public
objectives and efficient use of scarce resources;
i. The strengthening of the tax base by encouraging private development, thus
increasing the assessed valuation of properties within the Project Area as a whole
and benefiting the various taxing districts in which the urban renewal area is
located;
j. The acquisition of real property to support development and/or redevelopment
initiatives consistent with the Law and Act; and
k. The funding of necessary public infrastructure to accommodate both public and
private development.
101 General Procedures of the Agency
The Agency is a public body, corporate and politic, as defined and described under the
Law and the Act. The Agency is also governed by its bylaws as authorized by the Law and
adopted by the Agency. Under the Law, the Agency is governed by the Idaho open meeting law;
the Public Records Act; the Ethics in Government Act of 2015, Chapters 1, 2 and 4 of Title 74,
Idaho Code; reporting requirements pursuant to Idaho Code Sections 67-45013, 67-450E1, 50-
2903A and 50-2913; and the competitive bidding requirements under Chapter 28, Title 67, Idaho
Code, as well as other procurement or other public improvement delivery methods.
Subject to limited exceptions, the Agency shall conduct all meetings in open session and
allow meaningful public input as mandated by the issue considered or by any statutory or
regulatory provision.
The Agency may adopt separate policy statements. Any modification to any policy
statement is a technical or ministerial adjustment and is not a modification to this Plan under
Idaho Code Section 50-2903A.
1 Pursuant to House Bill 73,passed during the 2021 Legislative Session,significantly effective as of January 1,
2021,with the remaining sections in full force and effect on and after January 1,2022,Idaho Code Section 67-450E
is amended to Idaho Code Section 67-1076.
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102 Procedures Necessary to Meet State and Local Requirements: Conformance
with Idaho Code Sections 50-2008 and 50-2906
Idaho law requires that the City Council,by resolution, must determine a geographic area
be a deteriorated area or a deteriorating area, or a combination thereof, and designate such area
as appropriate for an urban renewal project prior to preparation of an urban renewal plan. A
consultant was retained to study a proposed project area(the "Study Area") and prepare an
eligibility report. The Northern Gateway Urban Renewal District (Proposed) Eligibility Report
(the "Report")was submitted to the Agency. The Agency accepted the Report by Agency
Resolution No. 21-026 on June 9, 2021, and thereafter submitted the Report to the City Council
for its consideration.
The Study Area was deemed by the City Council to be a deteriorating area and/or a
deteriorated area and therefore eligible for an urban renewal project by adoption of Resolution
No. 21-2273 on July 6, 2021. With the adoption of Resolution No. 21-2273, the City Council
declared the Study Area described in the Report to be a deteriorated area and/or a deteriorating
area as defined by the Law and Act, and further directed the Agency to commence preparation of
an urban renewal plan.
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.
In accordance with the Law and Act, the necessary agricultural operation consent was
obtained from the owner of the agricultural operation within the Project Area for property that
has been used as an agricultural operation within the last three (3)years. A copy of the
agricultural operation consent is attached hereto as Attachment 6.
An underdeveloped seventeen (17) acre parcel located in the northwest corner of the
Project Area and generally bounded by Meridian Road on the east and Cherry Lane on the south
was originally located within unincorporated Ada County. The parcel was annexed into the City
prior to City Council consideration of this Plan.
The Plan was prepared and submitted to the Agency for its review and approval. The
Agency approved the Plan by the adoption of Agency Resolution No. , on
, and submitted the Plan to the City Council with its recommendation for
adoption.
In accordance with the Law, this Plan was submitted to the Planning and Zoning
Commission of the City. After consideration of the Plan, the Commission reported to the City
Council that this Plan is in conformity with the City's Comprehensive Plan.
2 Following adoption of Agency Resolution No.21-026,technical minor edits were made to the Report.
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Pursuant to the Law and Act, the City Council having published due notice thereof, a
public hearing was held on this Plan. Notice of the hearing was duly published in the Meridian
Press, a newspaper having general circulation in the City. The City Council adopted this Plan on
by Ordinance No.
103 History and Current Conditions of the Area
As more specifically described in the Report, this Project Area is generally located in
central Meridian, northeast of the City's downtown core. The Project Area contains
approximately 126 acres, inclusive of rights-of-way, and is generally east of Meridian Road and
south of. Fairview Avenue. A portion of the Project Area fronts the north side of Fairview
Avenue east of Meridian Road. The Project Area also includes a 17.64 acre parcel located at the
northwest corner of Meridian Road and Cherry Lane.
The Project Area includes mixed zoning for primarily commercial and residential uses.
Current uses may not be wholly consistent with zoning and/or the City's vision set forth in the
Comprehensive Plan and/or Destination: Downtown, wherein the vision for this area
contemplates four(4)main goals promoting livability, mobility,prosperity, and sustainability.
The use of the urban renewal tool to support these goals is critical to the success of the vision.
Current conditions reflect aged residences converted to commercial uses over time with nineteen
(19) vacant parcels. More than half of the Project Area is devoted to commercial uses and/or
vacant parcels zoned for commercial use, with residential uses being the next most significant
land use category. The Project Area's largest single parcel is the 17.64-acre underdeveloped
parcel located in the northwest corner of Meridian Road and Cherry Lane. In its totality the
Project Area is reflective of the shifting urban geography of the City. The Report cites a number
of deteriorating conditions existing within the Project Area, including a substantial number of
deteriorating or deteriorated structures, deterioration of site, age or obsolescence, the
predominance of defective or inadequate street layout, faulty lot layout in relation to size,
adequacy, accessibility or usefulness, obsolete platting, insanitary and unsafe conditions, and
diversity of ownership. Together with deteriorating infrastructure, diversity of ownership
represents a significant impediment to development: 105.63 parcel acres in the Project Area are
owned by one hundred and fifty (150) entities,which can create issues with necessary property
assemblage to support economic development and/or housing opportunities. The foregoing
conditions have arrested or impaired growth in the Project Area.
The Plan proposes installation and improvements to rights-of-way (arterials, collectors,
and local roads),pathways, sidewalks, curbs, gutters, and other streetscape improvements; transit
infrastructure; public infrastructure, including improvements to sewer and water infrastructure,
power and fiber installation and/or upgrades; property acquisition to support economic
development and housing opportunities and other publicly owned assets throughout the Project
Area, as more specifically set forth in Attachment 5, creating the opportunity to revitalize the
Project Area and to support transportation infrastructure, as well as mixed-use residential and
commercial development consistent with the City's Comprehensive Plan and Destination:
Downtown. Other identified improvements include fagade improvements; historic lighting;
wayfinding/signage; installation and/or improvements to public plazas,parks, and open space;
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environmental remediation; and related planning studies to best implement the proposed public
infrastructure improvements.
The 17-acre undeveloped parcel, together with the other 19 vacant parcels are
underdeveloped and are not being used to their highest and best use. A goal of this Plan is to
support development opportunities of this site that will ultimately contribute significantly to the
tax base.
The preparation and approval of an urban renewal plan, including a revenue allocation
financing provision, gives the City additional resources to solve the transit,public infrastructure,
and development impediment issues in this area. Revenue allocation financing should help to
improve the situation. In effect,property taxes generated by new developments within the
Project Area may be used by the Agency to finance a variety of needed public improvements and
facilities. Finally, some of the new developments may also generate new jobs in the community
that would, in turn, benefit area residents long-term. Additionally, the proposed infrastructure
improvements could support a variety of housing opportunities with diverse rental and income
ranges, which supports and adds to the fabric of the Project Area.
It is unlikely individual developers or public partners will take on the prohibitive costs of
constructing the necessary infrastructure in the Project Area without the ability of revenue
allocation to help offset at least some of these costs. But for urban renewal and revenue
allocation financing, the proposed public improvements to support revitalization of the Project
Area would not occur.
104 Purpose of Activities
Attachment 5 includes the public improvements lists identifying with specificity the
proposed public improvements and projects contemplated in the Project Area. The description of
activities, public improvements, and the estimated costs of those items are intended to create an
outside limit of the Agency's activity. Due to the inherent difficulty in projecting future levy
rates, future taxable value, and the future costs of construction, the Agency reserves the right to:
a. Change funding amounts from one Project to another.
b. Re-prioritize the Projects described in this Plan and the Plan Attachments.
C. Retain flexibility in funding the various activities in order to best meet the Plan
and the needs of the Project Area.
d. Retain flexibility in determining whether to use the Agency's funds or funds
generated by other sources.
e. Alter the location of proposed improvements set forth in Attachment 5 to support
development when it occurs. The information included in Attachment 5 describes
a realistic development scenario recognizing it is difficult to project with any
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certainty where the improvements will be sited until any future projects submit
plans to the City for design review and permitting.
The Agency intends to discuss and negotiate with any owner or developer of the
parcels within the Project Area seeking Agency assistance during the duration of the Plan
and Project Area. During such negotiation, the Agency will determine the eligibility of the
activities sought for Agency funding, the amount the Agency may fund by way of percentage or
other criteria including the need for such assistance. The Agency will also take into account the
amount of revenue allocation proceeds estimated to be generated from the developer's activities.
The Agency also reserves the right to establish,by way of policy, its funding percentage or
participation, which would apply to all developers and owners and may prioritize certain projects
or types of projects.
Throughout this Plan, there are references to Agency activities, Agency funding, and the
acquisition, development, and contribution of public improvements. Such references do not
necessarily constitute a full, final, and formal commitment by the Agency but, rather, grant to the
Agency the discretion to participate as stated subject to achieving the objectives of this Plan and
provided such activity is deemed eligible under the Law and the Act. The activities listed in
Attachment 5 will be determined or prioritized as the overall Project Area develops and through
the annual budget setting process.
The activities listed in Attachment 5 are not prioritized but are anticipated to be
completed as determined by available funds. As required by the Law and Act, the Agency will
adopt more specific budgets annually. The projected timing of funding is primarily a function of
the availability of market conditions and financial resources but is also strategic, considering the
timing of private development partnership opportunities and the ability of certain strategic
activities to stimulate development at given points in time within the planned 20-year period of
the urban renewal district and revenue allocation area.
The Study(Attachment 5)has described a list of public improvements and other related
activities with an estimated cost in 2021 dollars of approximately $33,925,000. This amount does
not take into account inflationary factors, such as increasing construction costs, which would
increase that figure depending on when the owner, developer and/or Agency is able to develop,
construct or initiate those activities. The Study has concluded the capacity of revenue allocation
funds through the term of the Plan based on the assumed development projects and assessed
value increases will likely generate an estimated $35,085,665. The Agency reserves the
discretion and flexibility to use revenue allocation proceeds in excess of the amounts predicted in
the event higher increases in assessed values occur during the term of the Plan for the
improvements and activities identified. Additionally, the Agency reserves the discretion and
flexibility to use other sources of funds unrelated to revenue allocation to assist in the funding of
the improvements and activities identified.
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105 Open Land Criteria
This Plan contemplates Agency acquisition of property within the Project Area, in part, to
support economic development/demonstration projects and housing. The Project Area is not
predominantly open, and it does not include any agricultural zoning districts; however, the
Project Area includes parcels that are vacant and/or transitioning agricultural operations that
could meet the undefined "open land"requiring the area meet the conditions set forth in Idaho
Code Section 50-2008(d). These conditions include defective or unusual conditions of title,
diversity of ownership, tax delinquency, improper subdivisions, outmoded street patterns,
deterioration of site, and faulty lot layout, all of which are included in one form or another in the
definitions of deteriorated area or deteriorating area set forth in Idaho Code Sections 50-2018(8),
(9) and 50-2903(8). The issues listed only in Idaho Code Section 50-2008(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."
Open land areas qualify for Agency acquisition and development for residential uses if
the City Council determines there is a shortage of housing of sound standards and design which
is decent, safe and sanitary in the City, that the need for housing will be increased as a result of
the clearance of deteriorated areas, that the conditions of blight in the area and the shortage of
decent, safe and sanitary housing contributes to an increase in the spread of disease and crime
and constitutes and 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 City. Due to the City's expected growth, the need for housing, including affordable and/or
workforce housing, is significant and integral to a successful mixed-use Project Area. Further,
the existing zoning designations in the Project Area allow for mixed-density residential, and the
future land use map shows areas of projected increased residential density, including surrounding
potential commercial projects.
Open land areas qualify for Agency acquisition and development for primarily
nonresidential uses if acquisition is necessary and appropriate to facilitate the proper growth and
development of the community in accordance with sound planning standards and local
community objectives if any of the deteriorating area conditions set forth in Idaho Code Sections
50-2018(8), (9) and 50-2903(8) apply. But such areas also qualify if any of the issues listed only
in Idaho Code Section 50-2008(d)(4)(2) apply. The substantial number of deteriorating
structures, a predominance of defective or inadequate street layout, faulty lot layout in relation to
size, adequacy, accessibility or usefulness, insanitary or unsafe conditions, deterioration of site or
other improvements, diversity of ownership, and economic disuse, are all conditions which delay
or impair development of the open land areas and satisfy the open land conditions as more fully
supported by the Report, which was prepared by Kushlan I Associates.
This Plan does anticipate Agency acquisition of property within the Project Area;
however,the acquisition of specific parcels is unknown at this time. Should the Agency
determine the need to acquire property as further set forth in Attachment 3, then the open land
areas qualify for Agency acquisition and development.
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200 DESCRIPTION OF PROJECT AREA
The boundaries of the Project Area and the Revenue Allocation Area are shown on the
Boundary Map of Northern Gateway District Urban Renewal Project Area and Revenue
Allocation Area, attached hereto as Attachment 1 and incorporated herein by reference, and are
described in the Legal Description of Northern Gateway District Urban Renewal Project Area
and Revenue Allocation Area, attached hereto as Attachment 2 and incorporated herein by
reference. For purposes of boundary descriptions and use of proceeds for payment of
improvements, the boundary shall be deemed to extend to the outer boundary of rights-of-way or
other natural boundary unless otherwise stated.
300 PROPOSED REDEVELOPMENT ACTIONS
301 General
The Agency proposes to eliminate and prevent the spread of deteriorating conditions and
deterioration in the Project Area by employing a strategy to improve and develop public and
private lands, to increase connectivity and transit options, and to grow the economy in the
Project Area. Implementation of the strategy includes, but is not limited to the following actions:
a. The engineering, design, installation, construction, and/or reconstruction of streets and
streetscapes, including but not limited to improvements and upgrades to Northeast 2nd
Street,Northeast 2 1/2 Street, and Northeast 3rd Street and related pedestrian facilities,
curb and gutter, intersection and rail crossing improvements, and traffic signals;
b. The engineering, design, installation, construction, and/or reconstruction of storm water
management infrastructure to support compliance with federal, state, and local
regulations for storm water discharge and to support private development;
c. The provision for participation by property owners and developers within the Project
Area to achieve the objectives of this Plan;
d. The engineering, design, installation, construction and/or reconstruction of sidewalks and
related pedestrian facilities, curb and gutter and streetscapes, including but not limited to
improvements to Northeast 2nd Street,Northeast 2 %2 Street, and Northeast 3rd Street;
e. The engineering, design, installation, construction, and/or reconstruction of utilities
including but not limited to improvements and upgrades to the water distribution system,
including extension of the water distribution system, water capacity improvements, water
storage upgrades, sewer system improvements and upgrades, including extension of the
sewer collection system, lift station, and improvements, and upgrades to power, gas, fiber
optics, communications, and other such facilities;
f. Removal, burying, or relocation of overhead utilities; removal or relocation of
underground utilities; extension of electrical distribution lines and transformers;
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improvement of irrigation and drainage ditches and laterals; undergrounding or piping of
laterals; addition of fiber optic lines or other communication systems; public parking
facilities, and other public improvements, including but not limited to fire protection
systems, floodway and flood zone mitigation; and other public improvements that may be
deemed appropriate by the Board;
g. The engineering, design, installation, and/or construction of a public parking structure or
structures and/or public surface parking lot and related public improvements;
h. The acquisition of real property for public right-of-way and streetscape improvements,
utility undergrounding, extension,upgrades, public parks and trails, pedestrian facilities,
pathways and trails, recreational access points and to encourage and enhance housing
affordability and housing diversity, enhance transit options and connectivity, decrease
underutilized parcels, create development opportunities consistent with the Plan,
including but not limited to future disposition to qualified developers for qualified
developments;
i. The disposition of real property through a competitive process in accordance with this
Plan, Idaho law, including Idaho Code Section 50-2011, and any disposition policies
adopted by the Agency;
j. The demolition or removal of certain buildings and/or improvements for public rights-of-
way and streetscape improvements, pedestrian facilities, utility undergrounding extension
and upgrades, public facilities, and to encourage and enhance housing affordability and
housing diversity, enhance mobility options and connectivity, decrease underutilized
parcels and surface parking lots, eliminate unhealthful,unsanitary, or unsafe conditions,
eliminate obsolete or other uses detrimental to the public welfare or otherwise to remove
or to prevent the spread of deteriorating or deteriorated conditions;
k. The management of any property acquired by and under the ownership and control of the
Agency;
1. The development or redevelopment of land by private enterprise or public agencies for
uses in accordance with this Plan;
in. The construction and financial support of infrastructure necessary for the provision of
improved transit and alternative transportation;
n. The engineering, design, installation, construction, and/or reconstruction of below ground
infrastructure to support the construction of certain municipal buildings pursuant to Idaho
Code Section 50-2905A;
o. The provision of financial and other assistance to encourage and attract business
enterprise, including but not limited to start-ups and microbusinesses, mid-sized
companies, and large-scale corporations;
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p. The provision of financial and other assistance to encourage greater density and a diverse
mix of rental rates and housing options;
q. The rehabilitation of structures and improvements by present owners, their successors,
and the Agency;
r. The preparation and assembly of adequate sites for the development and construction of
facilities for mixed-use residential (including affordable and/or workforce housing when
and if determined to be a public benefit), commercial, retail areas, medial facilities, and
educational facilities;
s. The environmental assessment and remediation of brownfield sites, or sites where
environmental conditions detrimental to redevelopment exist;
t. In collaboration with property owners and other stakeholders, working with the City to
amend zoning regulations (if necessary) and standards and guidelines for the design of
streetscape,plazas multi-use pathways,parks, and open space and other like public
spaces applicable to the Project Area as needed to support implementation of this Plan;
u. In conjunction with the City, the establishment and implementation of performance
criteria to assure high site design standards and environmental quality and other design
elements which provide unity and integrity to the entire Project Area, including
commitment of funds for planning studies, achieving high standards of development, and
leveraging such development to achieve public objectives and efficient use of scarce
resources;
v. To the extent allowed by law, lend or invest federal funds to facilitate development
and/or redevelopment;
w. The provision for relocation assistance to displaced Project Area occupants, as required
by law, or within the discretion of the Agency Board for displaced businesses;
x. Agency and/or owner-developer construction,participation in the construction and/or
management of public parking facilities and/or surface lots that support a desired level
and form of development to enhance the vitality of the Project Area;
y. Other related improvements to those set forth above as further set forth in Attachment 5.
In the accomplishment of these purposes and activities and in the implementation and
furtherance of this Plan, the Agency is authorized to use all the powers provided in this Plan and
all the powers now or hereafter permitted by Law and Act.
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302 Urban Renewal Plan Objectives
Urban renewal activity is necessary in the Project Area to combat problems of physical
deterioration or deteriorating conditions. As set forth in greater detail in Section 103,
the Project Area has a history of stagnant growth and development compared to other areas of
the City based on deteriorated or deteriorating conditions that have arrested or impaired growth
in the Project Area primarily attributed to: a substantial number of deteriorating or deteriorated
structures, widespread deterioration of site, underdeveloped properties; inadequate connectivity;
lack of multi-use paths; the predominance of defective or inadequate street layout, faulty lot
layout, , insanitary and unsafe conditions, and diversity of ownership. The Plan for the Project
Area is a proposal to work in partnership with public and private entities to improve, develop,
and grow the economy within the Project Area by the implementation of a strategy and program
set forth in Section 301.
The provisions of this Plan are applicable to all public and private property in the Project
Area. The provisions of the Plan shall be interpreted and applied as objectives and goals,
recognizing the need for flexibility in interpretation and implementation, while at the same time
not in any way abdicating the rights and privileges of the property owners which are vested in
the present and future zoning classifications of the properties. All development under an owner
participation agreement shall conform to those standards specified in Section 303.1 of this Plan.
It is recognized that the Ada County Highway District has exclusive jurisdiction
over all public street rights-of-way within the Project Area, except for state highways.
Nothing in this Plan shall be construed to alter the powers of the Ada County Highway
District pursuant to Title 40,Idaho Code.
This Plan must be practical in order to succeed. Particular attention has been paid to how
it can be implemented, given the changing nature of market conditions. Transforming the
Project Area into a vital, thriving part of the community requires an assertive strategy. The
following list represents the key elements of that effort:
a. Initiate simultaneous projects designed to revitalize the Project Area. From street
and utility improvements to significant new public or private development, the
Agency plays a key role in creating the necessary momentum to get and keep
things going.
b. Develop new mixed-use residential, retail, and commercial areas including
opportunities for community, cultural, educational, medical, and recreational
facilities, as well as encourage economic development opportunities.
C. Secure and improve certain public open space in critical areas.
d. Initiate projects designed to increase affordable and workforce housing options
and increased transportation and connectivity options.
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Without direct public intervention, much of the Project Area could conceivably remain
unchanged and in a deteriorated and/or deteriorating condition for the next twenty(20)years.
The Plan creates the necessary flexible framework for the Project Area to support the City's
economic development while complying with the "specificity"requirement set forth in Idaho
Code Section 50-2905.
Land use in the Project Area will be modified to the extent that underutilized,
underdeveloped, deteriorated, deteriorating and vacant land and land now devoted to uses
inconsistent with the future land uses of the area will be converted to mixed-use, retail residential
(including affordable and/or workforce housing) and commercial areas, cultural centers, food
halls, transit oriented development, educational facilities, other public facilities and
improvements, including but not limited to streets, streetscapes, water and sewer improvements,
environmental and floodplain remediations/site preparation, public parking, community
facilities,parks,plazas and pedestrian/bike pathways. In implementing the activities described
in this Plan, the Agency shall give due consideration to the provision of adequate open space,
park and recreational areas and facilities that may be desirable for neighborhood improvement,
with special consideration for the health, safety, and welfare of residents in the general vicinity
of the Project Area covered by the Plan.
303 Participation Opportunities and Agreements
303.1 Participation Agreements
The Agency may enter into various development participation agreements with any
existing or future owner of property in the Project Area, in the event the property owner seeks
and/or receives assistance from the Agency in the development and/or redevelopment of the
property. The terms "owner participation agreement," "participation agreement," or
"development agreement" are intended to include all participation agreements with a property
owner, including reimbursement agreements, grant agreements or other participation agreements.
In that event, the Agency may allow for an existing or future owner of property to remove the
property and/or structure from future Agency acquisition subject to entering into an owner
participation agreement. The Agency may also enter into owner participation agreements with
other future owners and developers within the Project Area throughout the duration of the Plan in
order to implement the infrastructure improvements set forth in this Plan.
Each structure and building in the Project Area to be rehabilitated or to be constructed as
a condition of the owner participation agreement between the Agency and the owner pursuant to
this Plan will be considered to be satisfactorily rehabilitated and constructed pursuant to the
requirements of the Law and Act, and the Agency will so certify, if the rehabilitated or new
structure meets the standards set forth in an executed owner participation agreement and
complies with the applicable provisions of this Plan, local codes and ordinances and the Idaho
Code. Additional conditions described below:
• Any such property within the Project Area shall be required to conform to
applicable provisions, requirements, and regulations of this Plan. The owner
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participation agreement may require as a condition of financial participation by
the Agency a commitment by the property owner to meet the greater objectives of
the land use elements identified in the Comprehensive Plan, Destination:
Downtown and applicable zoning ordinances and other requirements deemed
appropriate and necessary by the Agency. Upon completion of any rehabilitation
each structure must be safe and sound in all physical respects and be refurbished
and altered to bring the property to an upgraded marketable condition that will
continue throughout an estimated useful life for a minimum of twenty (20)years.
• All such buildings or portions of buildings which are to remain within the Project
Area shall be rehabilitated or constructed in conformity with all applicable codes
and ordinances of the City.
• Any new construction shall also conform to all applicable provisions,
requirements, and regulations of this Plan, as well as all applicable codes and
ordinances of the City.
All owner participation agreements will address development timing,justification
and eligibility of project costs, and achievement of the objectives of the Plan. The Agency
shall retain its discretion in the funding level of its participation. Obligations under owner
participation agreements shall terminate no later than the termination date of this Plan,
December 31, 2041. The Agency shall retain its discretion to negotiate an earlier date to
accomplish all obligations under the owner participation agreement.
In all owner participation agreements,participants who retain real property shall be
required to join in the recordation of such documents as may be necessary to make the provisions
of this Plan applicable to their properties. Whether or not a participant enters into an owner
participation agreement with the Agency, the provisions of this Plan are applicable to all public
and private property in the Project Area.
In the event a participant under an owner participation agreement fails or refuses to
rehabilitate, develop,use, and maintain its real property pursuant to this Plan and an owner
participation agreement, the real property or any interest therein may be acquired by the Agency
in accordance with Section 305.1 of this Plan and sold or leased for rehabilitation or
development in accordance with this Plan.
Owner participation agreements may be used to implement the following objectives:
a. Encouraging property owners to revitalize and/or remediate deteriorated areas or
deteriorating areas of their parcels to accelerate development in the Project Area.
b. Subject to the limitations of the Law and the Act, providing incentives to property
owners to encourage utilization and expansion of existing permitted uses during
the transition period to prevent a decline in the employment base and a
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proliferation of vacant and deteriorated parcels in the Project Area during the
extended redevelopment of the Project Area.
C. To accommodate improvements and expansions allowed by City regulations and
generally consistent with this Plan for the Project Area.
d. Subject to the limitations of the Law and Act,providing incentives to improve
nonconforming properties so they implement the design guidelines contained in
this Plan to the extent possible and to encourage an orderly transition from
nonconforming to conforming uses through the term of the Plan.
e. Provide for advance funding by the developer/owner participant of those certain
public improvements related to or needed for the private development and related
to the construction of certain public improvements. In that event, the Agency will
agree as set out in the participation agreement to reimburse a portion of, or all of,
the costs of public improvements identified in the participation agreement from
the revenue allocation generated by the private development. Though no specific
advance funding by a developer/owner participant is shown in the cash analysis
attachments,this Plan specifically allows for such an advance.
304 Cooperation with Public Bodies
Certain public bodies are authorized by state law to aid and cooperate, with or without
consideration, in the planning, undertaking, construction, or operation of this Project. The
Agency shall seek the aid and cooperation of such public bodies and shall attempt to coordinate
this Plan with the activities of such public bodies in order to accomplish the purposes of
redevelopment and the highest public good.
The Agency, by law, is not authorized to acquire real property owned by public bodies
without the consent of such public bodies. The Agency will seek the cooperation of all public
bodies which own or intend to acquire property in the Project Area. All plans for development
of property in the Project Area by a public body shall be subject to Agency approval, in the event
the Agency is providing any financial assistance.
Subject to applicable authority, the Agency may impose on all public bodies the planning
and design controls contained in this Plan to ensure that present uses and any future development
by public bodies will conform to the requirements of this Plan; provided, however, the Ada
County Highway District has exclusive jurisdiction over Ada County Highway District streets.
The Agency is authorized to financially(and otherwise) assist any public entity in the cost of
public land, buildings, facilities, structures, or other improvements of the Project Area as allowed
by the Law and Act.
The Agency intends to cooperate to the extent allowable with the City and the Ada
County Highway District (or the Idaho Transportation Department), as the case may be, for the
engineering, design, installation, construction, and/or reconstruction of public infrastructure
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improvements, including, but not limited to those improvements set forth in Section 301. The
Agency shall also cooperate with the City and the Ada County Highway District(or the Idaho
Transportation Department) on various relocation, screening, or undergrounding projects and the
providing of fiber optic capability. To the extent any public entity, including the City and/or the
Ada County Highway District, has funded certain improvements, the Agency may reimburse
those entities for those expenses. The Agency also intends to cooperate and seek available
assistance from state, federal and other sources for economic development.
In the event the Agency is participating in the public development by way of financial
incentive or otherwise, the public body shall enter into a participation agreement with the
Agency and then shall be bound by the Plan and other land use elements and shall conform to
those standards specified in Section 303.1 of this Plan.
This Plan does not financially bind or obligate the City, Agency and/or any other public
entity to any project or property acquisition; rather, for purposes of determining the economic
feasibility of the Plan certain projects and expenditures have been estimated and included in the
analysis. Agency revenue and the ability to fund reimbursement of eligible Project Costs is
more specifically detailed in any participation agreement and in the annual budget adopted by the
Agency Board.
305 Property Acquisition
305.1 Real Property
Only as specifically authorized herein, the Agency may acquire, through the voluntary
measures described below, but is not required to acquire, any real property located in the Project
Area where it is determined that the property is needed for construction of public improvements,
required to eliminate or mitigate the deteriorated or deteriorating conditions, to facilitate
economic development, including acquisition of real property intended for disposition to
qualified developers through a competitive process, and as otherwise allowed by law. The
acquisition shall be by any means authorized by law, including,but not limited to, the Law, the
Act, and the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970,
as amended, but shall not include the right to invoke eminent domain authority except as
authorized by Idaho law and provided herein. The Agency is authorized to acquire either the
entire fee or any other interest in real property less than a fee, including structures and fixtures
upon the real property, without acquiring the land upon which those structures and fixtures are
located.
The Agency intends to acquire any real property through voluntary or consensual gift,
devise, exchange, or purchase. Such acquisition of property may be for the development of the
public improvements identified in this Plan. Acquisition of property may be for the assembly of
properties for redevelopment to achieve Plan goals including public benefits such as affordable
and/or workforce housing. Such properties may include properties owned by private parties or
public entities. This Plan anticipates the Agency's use of its resources for property acquisition.
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In the event the Agency identifies certain property which should be acquired to develop
certain public improvements intended to be constructed under the provisions of this Plan, the
Agency shall coordinate such property acquisition with any other public entity(e.g., without
limitation, the City, the state of Idaho, or any of its authorized agencies), including the assistance
of Agency funds to acquire said property either through a voluntary acquisition or the public
entity's invoking of its eminent domain authority as limited by Idaho Code Section 7-701A.
The Agency is authorized by this Plan to acquire the properties identified in Attachment 3
hereto, including but not limited to property to be acquired for the extension or expansion of
certain rights-of-way.
The Agency is authorized by this Plan and Idaho Code Sections 50-2010 and 50-
2018(12) to acquire the properties identified in Attachment 3 hereto for the purposes set forth in
this Plan. The Agency has identified its intent to acquire and/or participate in the development
of certain public improvements, including, but not limited to those identified in Section 301 of
the Plan and/or Attachment 5 hereto. Further, the Agency intends to acquire real property to
facilitate commercial and/or economic development projects and/or high-density residential
development by assembling and disposing of developable parcels. The Agency's property
acquisition will result in remediating deteriorating conditions in the Project Area by facilitating
the development of mixed-use,residential (including affordable and/or workforce housing),
commercial and retail areas. The public improvements are intended to be dedicated to the City
and/or other appropriate public entity, as the case may be, upon completion. The Agency
reserves the right to determine which properties identified, if any, should be acquired. The open
land areas qualify for Agency acquisition as further set forth in Section 105 of this Plan.
It is in the public interest and may be necessary, in order to eliminate the conditions
requiring redevelopment and in order to execute this Plan, for the power of eminent domain to be
employed by the Agency, or by the City with the Agency acting in an advisory capacity', to
acquire real property in the Project Area for the public improvements identified in this Plan,
which cannot be acquired by gift, devise, exchange,purchase, or any other lawful method.
Under the provisions of the Act, the urban renewal plan"shall be sufficiently complete to
indicate such land acquisition, demolition, and removal of structures, redevelopment,
improvements, and rehabilitation as may be proposed to be carried out in the urban renewal
area." Idaho Code Section 50-2018(12). The Agency has generally described those properties
by use as set out in Attachment 3 for acquisition for the construction of public improvements.
The Agency may also acquire property for the purpose of developing streetscape and public
utilities. The Agency reserves the right to determine which properties, if any, should be
acquired.
s House Bill 1044,adopted by the Idaho Legislature during the 2021 Legislative Session,limited the Agency's
ability to exercise eminent domain.
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305.2 Personal Property
Generally,personal property shall not be acquired. However,where necessary in the
execution of this Plan, the Agency is authorized to acquire personal property in the Project Area
by any lawful means, including eminent domain as limited by Idaho Code Section 7-701A for
the purpose of developing the public improvements described in Section 305.1.
306 Property Management
During the time real property, if any, in the Project Area is owned by the Agency, such
property shall be under the management and control of the Agency. Such property may be
rented or leased by the Agency pending its disposition for development and/or redevelopment,
and such rental or lease shall be pursuant to such policies as the Agency may adopt.
307 Relocation of Persons (Including Individuals and Families), Business
Concerns, and Others Displaced by the Project
If the Agency receives federal funds for real estate acquisition and relocation, the Agency
shall comply with 24 C.F.R. Part 42, implementing the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970, as amended.
The Agency reserves the right to extend benefits for relocation to those not otherwise
entitled to relocation benefits as a matter of state law under the Act or the Law. The Agency
may determine to use as a reference the relocation benefits and guidelines promulgated by the
federal government, the state government, or local government, including the State Department
of Transportation and the Ada County Highway District. The intent of this section is to allow
the Agency sufficient flexibility to award relocation benefits on some rational basis, or by
payment of some lump-sum per case basis. The Agency may also consider the analysis of
replacement value for the compensation awarded to either owner occupants or businesses
displaced by the Agency to achieve the objectives of this Plan. The Agency may adopt
relocation guidelines which would define the extent of relocation assistance in non-federally
assisted projects and which relocation assistance to the greatest extent feasible would be uniform.
The Agency shall also coordinate with the various local, state, or federal agencies concerning
relocation assistance as may be warranted.
In the event the Agency's activities result in displacement of families, the Agency shall
comply with, at a minimum, the standards set forth in the Law. The Agency shall also comply
with all applicable state laws concerning relocation benefits and shall also coordinate with the
various local, state, or federal agencies concerning relocation assistance.
308 Demolition, Clearance and Site Preparation
The Agency is authorized(but not required)to demolish and clear buildings, structures,
and other improvements from any real property in the Project Area as necessary to carry out the
purposes of this Plan.
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Further, the Agency is authorized(but not required) to prepare, or cause to be prepared,
as building sites any real property in the Project Area owned by the Agency including site
preparation and/or environmental remediation. In connection therewith, the Agency may cause,
provide for, or undertake the installation or construction of streets, utilities, parks,pedestrian
walkways, parking facilities, drainage facilities, and other public improvements necessary to
carry out this Plan.
309 Property Disposition and Development
309.1 Disposition by the Agency
For the purposes of this Plan, the Agency is authorized to sell, lease, lease/purchase,
exchange, subdivide, transfer, assign, pledge, encumber by mortgage or deed of trust, or
otherwise dispose of any interest in real property under the reuse provisions set forth in Idaho
law, including Idaho Code Section 50-2011 and pursuant to any disposition policies adopted by
the Agency. To the extent permitted by law, the Agency is authorized to dispose of real property
by negotiated lease, sale, or transfer without public bidding.
Real property acquired by the Agency may be conveyed by the Agency and, where
beneficial to the Project Area, without charge to any public body as allowed by law. All real
property acquired by the Agency in the Project Area shall be sold or leased to public or private
persons or entities for development for the uses permitted in this Plan.
Air rights and subterranean rights may be disposed of for any permitted use within the
Project Area boundaries.
309.2 Disposition and Development Agreements
To provide adequate safeguards to ensure that the provisions of this Plan will be carried
out and to prevent the recurrence of deteriorating conditions, all real property sold, leased, or
conveyed by the Agency is subject to the provisions of this Plan.
The Agency shall reserve such powers and controls in the disposition and development
documents as the Agency deems may be necessary to prevent transfer,retention, or use of
property for speculative purposes and to ensure that development is carried out pursuant to this
Plan.
Leases, lease/purchases, deeds, contracts, agreements, and declarations of restrictions of
the Agency may contain restrictions, covenants, covenants running with the land, rights of
reverter, conditions subsequent, equitable servitudes, or any other provisions necessary to carry
out this Plan. Where appropriate, as determined by the Agency, such documents, or portions
thereof, shall be recorded in the office of the Recorder of Ada County, Idaho.
All property in the Project Area is hereby subject to the restriction that there shall be no
discrimination or segregation based upon race, color, creed, religion, sex, age, national origin, or
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ancestry in the sale, lease, sublease, transfer,use, occupancy, disability/handicap, tenure, or
enjoyment of property in the Project Area. All property sold, leased, conveyed, or subject to a
disposition and development agreement shall be expressly subject by appropriate documents to
the restriction that all deeds, leases, or contracts for the sale, lease, sublease, or other transfer of
land in the Project Area shall contain such nondiscrimination and nonsegregation clauses as
required by law.
As required by law or as determined in the Agency's discretion to be in the best interest
of the Agency and the public, the following requirements and obligations shall be included in the
disposition and development agreement.
That the developers, their successors, and assigns agree:
a. That a detailed scope and schedule for the proposed development shall be
submitted to and agreed upon by the Agency.
b. That the purchase or lease of the land and/or subterranean rights and/or air rights
is for the purpose of redevelopment and not for speculation.
C. That the building of improvements will be commenced and completed as jointly
scheduled and determined by the Agency and the developer(s).
d. That the site and construction plans will be submitted to the Agency for review as
to conformity with the provisions and purposes of this Plan.
e. All new construction shall have a minimum estimated life of no less than twenty
(20)years.
f. That rehabilitation of any existing structure must assure that the structure is safe
and sound in all physical respects and be refurbished and altered to bring the
property to an upgraded marketable condition which will continue throughout an
estimated useful life for a minimum of twenty(20)years.
g. That the Agency receives adequate assurance acceptable to the Agency to ensure
performance under the contract for sale.
h. All such buildings or portions of the buildings which are to remain within the
Project Area shall be reconstructed in conformity with all applicable codes and
ordinances of the City.
i. All disposition and development documents shall be governed by the provisions
of Section 409 of this Plan.
j. All other requirements and obligations as may be set forth in any participation
policy established and/or amended by the Agency.
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The Agency also reserves the right to determine the extent of its participation based
upon the achievements of the objectives of this Plan. Obligations under any disposition and
development agreement and deed covenants, except for covenants which run with the land
beyond the termination date of this Plan, shall terminate no later than December 31, 2041.
The Agency shall retain its discretion to negotiate an earlier date to accomplish all
obligations under any disposition and development agreement.
309.3 Development by the Agency
To the extent now or hereafter permitted by law, the Agency is authorized to pay for,
develop, or construct public improvements within the Project Area for itself or for any public
body or entity, which public improvements are or would be of benefit to the Project Area.
Specifically, the Agency may pay for, install, or construct the public improvements authorized
under Idaho Code Sections 50-2007, 50-2018(10) and(13), and 50-2903(9), (13), and(14), and
as otherwise identified in Attachment 5, attached hereto and incorporated herein by reference,
and may acquire or pay for the land required, therefore.
Any public facility ultimately owned by the Agency shall be operated and managed in
such a manner to preserve the public purpose nature of the facility. Any lease agreement with a
private entity or management contract agreement shall include all necessary provisions sufficient
to protect the public interest and public purpose.
The Agency may enter into contracts, leases, and agreements with the City, the Ada
County Highway District or other public body or private entity pursuant to this section, and the
obligation of the Agency under such contract, lease, or agreement shall constitute an
indebtedness of the Agency as described in Idaho Code Section 50-2909 which may be made
payable out of the taxes levied in the Project Area and allocated to the Agency under Idaho Code
Section 50-2908(2)(b) and Section 500 of this Plan or out of any other available funds.
310 Development Plans
All development plans (whether public or private)prepared pursuant to disposition and
development agreements or participation agreements shall be submitted to the Agency Board for
approval and architectural review. All development in the Project Area must conform to those
standards specified in Section 409. Additionally, development must be consistent with all City
ordinances.
311 Personal Property Disposition
For purposes of this Plan, the Agency is authorized to lease, sell, exchange, transfer,
assign,pledge, encumber, or otherwise dispose of personal property which is acquired by the
Agency.
312 [Reserved]
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313 Participation with Others
Under the Law, the Agency has the authority to lend or invest funds obtained from the
federal government for the purposes of the Law if allowable under federal laws or regulations.
The federal funds that may be available to the Agency are governed by regulations promulgated
by the Department of Housing and Urban Development for the Community Development Block
Grant Program("CDBG"), the Economic Development Administration, the Small Business
Administration, or other federal agencies. In order to enhance such grants, the Agency's use of
revenue allocation funds is critical.
Under those regulations the Agency may participate with the private sector in the
development and financing of those private projects that will attain certain federal objectives
including the creation or redevelopment of affordable and/or workforce housing or transit
improvements.
The Agency may, therefore, use the federal funds for the provision of assistance to
private for-profit business, including, but not limited to, grants, loans, loan guarantees, interest
supplements, technical assistance, and other forms to support, for any other activity necessary or
appropriate to carry out an economic development project.
As allowed by law, the Agency may also use funds from any other sources or participate
with the private or public sector with regard to any programs administered by the Idaho
Department of Commerce for any purpose set forth under the Law or Act.
The Agency may enter into contracts, leases, and agreements with the City, ACHD, or
other public body or private entity, pursuant to this section, and the obligation of the Agency
under such contract, lease, or agreement shall constitute an indebtedness of the Agency as
described in Idaho Code Section 50-2909 which may be made payable out of the taxes levied in
the Project Area and allocated to the Agency under Idaho Code Section 50-2908(2)(b) and
Section 500 of this Plan or out of any other available funds.
314 Conforming Owners
The Agency may, at the Agency's sole and absolute discretion, determine that certain real
property within the Project Area presently meets the requirements of this Plan, and the owner of
such property will be permitted to remain as a conforming owner without an owner participation
agreement with the Agency, provided such owner continues to operate, use, and maintain the real
property within the requirements of this Plan.
315 Arts and Cultural Funding
The Agency may dedicate resources for the construction or purchase of facilities for the
placement and maintenance of public art and arts projects may be selected and provided by the
Agency, separately from any construction costs of developers. Though not required, the Agency
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Board generally makes selections of the works of art with assistance from the City and the
Meridian Arts Commission and may include review and approval of the City Council.
When possible, any Agency arts funding will be used to leverage additional contributions
from developers, other private sources, and public or quasi-public entities for purposes of
including public art within the streetscape projects identified in this Plan.
400 USES PERMITTED IN THE PROJECT AREA
401 Designated Land Uses
The Agency intends to rely upon the overall land use designations and zoning
classifications of the City, as may be amended, and as depicted on Attachment 4 and as set forth
in the City's Comprehensive Plan and within the Meridian zoning ordinance and requirements,
including the future land use map and zoning classifications, as may be amended. For the most
part, the Project Area includes a mix of uses including mixed-use residential (mixed density and
income), commercial, retail and office development, as well as public open spaces, and public
structured parking and/or surface lots. Such improvements are consistent with the current zoning
designations. Provided, however, nothing herein within this Plan shall be deemed to be granting
any particular right to zoning classification or use.
402 [Reserved]
403 Public Rights-of-Way
The Project Area contains existing maintained public rights-of-way included within the
boundaries, as set forth on Attachments 1. Any new roadways, including new collectors and/or
local roads to be engineered, designed, installed, and constructed in the Project Area,will be
constructed in conjunction with any applicable policies and design standards of the City or Ada
County Highway District (and State and Federal standards, as the case may be)regarding
dedicated rights-of-way. Additional public streets, alleys, and easements may be created in the
Project Area as needed for proper development, and other potential roadways generally
described in Attachment 5.
Additional improvements to existing streets, alleys and easements may be created,
improved, or extended in the Project Area as needed for development. Existing dirt roadways,
streets, easements, and irrigation or drainage laterals or ditches may be abandoned, closed, or
modified as necessary for proper development of the Project Area, in accordance with any
applicable policies and standards of the Idaho Transportation Department, the City or Ada
County Highway District regarding changes to dedicated rights-of-way, and appropriate
irrigation or drainage districts regarding changes to laterals or ditches.
Any development, maintenance and future changes in the existing interior or exterior
street layout shall be in accordance with the objectives of this Plan and the standards of the City,
the Ada County Highway District, or the Idaho Department of Transportation as may be
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applicable; shall be effectuated in the manner prescribed by State and local law; and shall be
guided by the following criteria:
a. A balancing of the needs of proposed and potential new developments for
adequate pedestrian and vehicular access (including cars, trucks, bicycles, etc.),
vehicular parking, and delivery loading docks with the similar needs of any
existing developments permitted to remain. Such balancing shall take into
consideration the rights of existing owners and tenants under the rules for owner
and tenant participation adopted by the Agency for the Project and any
participation agreements executed thereunder;
b. The requirements imposed by such factors as topography, traffic safety, and
aesthetics; and
C. The potential need to serve not only the Project Area and new or existing
developments, but to also serve areas outside the Project Area by providing
convenient and efficient vehicular access and movement.
The public rights-of-way may be used for vehicular and/or pedestrian traffic, as well as
for public improvements, public and private utilities, and activities typically found in public
rights-of-way.
404 Other Public, Semi-Public, Institutional, and Nonprofit Uses
The Agency is also authorized to permit the maintenance, establishment, or enlargement
of public, semi-public, institutional, or nonprofit uses, including park and recreational facilities;
educational, fraternal, and employee facilities; philanthropic and charitable institutions; utilities;
governmental facilities; railroad rights-of-way and equipment; and facilities of other similar
associations or organizations. All such uses shall, to the extent possible, conform to the
provisions of this Plan applicable to the uses in the specific area involved. The Agency may
impose such other reasonable requirements and/or restrictions as may be necessary to protect the
development and use of the Project Area.
405 Interim Uses
Pending the ultimate development of land by developers and participants, the Agency is
authorized to use or permit the use of any land in the Project Area for interim uses that are not in
conformity with the uses permitted in this Plan. However, any interim use must comply with
applicable City Code or Ada County Code.
406 Development in the Project Area Subject to the Plan
All real property in the Project Area,under the provisions of either a disposition and
development agreement or participation agreement, is made subject to the controls and
requirements of this Plan. No such real property shall be developed, rehabilitated, or otherwise
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changed after the date of the adoption of this Plan, except in conformance with the provisions of
this Plan.
407 Construction Shall Comply with Applicable Federal, State, and Local Laws
and Ordinances and Agency Development Standards
All construction in the Project Area shall comply with all applicable state laws, the
Meridian City Code, as may be amended from time to time, and any applicable City Council
ordinances pending codification, including but not limited to, regulations concerning the type,
size, density and height of buildings; open space, landscaping, light, air, and privacy; the
undergrounding of utilities; limitation or prohibition of development that is incompatible with
the surrounding area by reason of appearance, traffic, smoke, glare, noise, odor, or similar
factors; parcel subdivision; off-street loading and off-street parking requirements.
In addition to applicable codes, ordinances, or other requirements governing development
in the Project Area, additional specific performance and development standards may be adopted
by the Agency to control and direct redevelopment activities in the Project Area in the event of a
disposition and development agreement or participation agreement.
408 Minor Variations
Under exceptional circumstances, the Agency is authorized to allow a variation from the
limits, restrictions, and controls established by this Plan. In order to allow such variation, the
Agency must determine that:
a. The application of certain provisions of this Plan would result in practical
difficulties or unnecessary hardships inconsistent with the general purpose and
intent of this Plan;
b. There are exceptional circumstances or conditions applicable to the property or to
the intended development of the property which do not apply generally to other
properties having the same standards, restrictions, and controls;
C. Allowing a variation will not be materially detrimental to the public welfare or
injurious to property or improvements in the area; and
d. Allowing a variation will not be contrary to the objectives of this Plan.
No variation shall be granted which changes a basic land use or which permits other than
a minor departure from the provisions of this Plan. In allowing any such variation, the Agency
shall impose such conditions as are necessary to protect the public peace, health, safety, or
welfare and to assure compliance with the purposes of the Plan. Any variation allowed by the
Agency hereunder shall not supersede any other approval required under City codes and
ordinances and shall not be considered a modification to the Plan.
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409 Nonconforming Uses
This Section applies to property owners seeking assistance from the Agency regarding
their property. The Agency may permit an existing use to remain in an existing building and site
usage in good condition, which use does not conform to the provisions of this Plan,provided that
such use is generally compatible with existing and proposed developments and uses in the
Project Area. The owner of such a property must be willing to enter into a participation
agreement and agree to the imposition of such reasonable restrictions as may be necessary to
protect the development and use of the Project Area.
The Agency may authorize additions, alterations, repairs, or other improvements in the
Project Area for uses which do not conform to the provisions of this Plan where such
improvements are within a portion of the Project Area where, in the determination of the
Agency, such improvements would be compatible with surrounding Project uses and
development.
All nonconforming uses shall also comply with the City codes and ordinances.
410 Design Guidelines for Development under a Disposition and Development
Agreement or Owner Participation Agreement
Within the limits, restrictions, and controls established in this Plan, the Agency is
authorized to establish heights of buildings, density, land coverage, setback requirements, design
criteria, traffic circulation, traffic access, and other development and design controls necessary
for proper development of both private and public areas within the Project Area. Any
development must also comply with the City's zoning ordinance regarding heights, setbacks,
density, and other like standards.
In the case of property which is the subject of a disposition and development agreement
or owner participation agreement with the Agency, no new improvement shall be constructed,
and no existing improvement shall be substantially modified, altered, repaired, or rehabilitated,
except in accordance with this Plan. Under a disposition and development agreement or owner
participation agreement, the design guidelines and land use elements of the Plan shall be
achieved to the greatest extent feasible, though the Agency retains the authority to grant minor
variations under this Plan and subject to a negotiated agreement between the Agency and the
developer or property owner.
Under those agreements, the architectural, landscape, and site plans shall be submitted to
the Agency and approved in writing by the Agency. In such agreements, the Agency may
impose additional design controls. One of the objectives of this Plan is to create an attractive
pedestrian environment in the Project Area. Therefore, such plans shall give consideration to
good design and amenities to enhance the aesthetic quality of the Project Area. The Agency
shall find that any approved plans do comply with this Plan. The Agency reserves the right to
impose such design standards on an ad hoc basis through the approval process of the disposition
and development agreement or owner participation agreement. Any change to such approved
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design must be consented to by the Agency and such consent may be conditioned upon reduction
of Agency's financial participation towards the Project.
In the event the Agency adopts design standards or controls, those provision will
thereafter apply to each site or portion thereof in the Project Area. These additional design
standards or controls will be implemented through the provisions of any disposition and
development agreement or owner participation agreement. These controls are in addition to any
standards and provisions of any applicable City building or zoning ordinances; provided,
however, each and every development shall comply with all applicable City zoning and building
ordinances.
500 METHODS OF FINANCING THE PROJECT
501 General Description of the Proposed Financing Method
The Agency is authorized to finance this Project with revenue allocation funds, financial
assistance from the City(loans, grants, other financial assistance), the state of Idaho, the federal
government or other public entities, interest income, developer advanced funds, donations, loans
from private financial institutions (bonds, notes, line of credit), the lease or sale of Agency-
owned property,public parking revenue, or any other available source,public or private,
including assistance from any taxing district or any public entity.
The Agency is also authorized to obtain advances, lines of credit, borrow funds, and
create indebtedness in carrying out this Plan. The Agency may also consider an inter-fund
transfer from other urban renewal project areas. The principal and interest on such advances,
funds, and indebtedness may be paid from any funds available to the Agency. The City, as it is
able, may also supply additional assistance through City loans and grants for various public
improvements and facilities. The City, or any other public agency, as properly budgeted, may
expend money to assist the Agency in carrying out this Project.
As allowed by law and subject to restrictions as are imposed by law, the Agency is
authorized to issue notes or bonds from time to time, if it deems appropriate to do so, in order to
finance all or any part of the Project. Neither the members of the Agency nor any persons
executing the bonds are liable personally on the bonds by reason of their issuance.
502 Revenue Allocation Financing Provisions
The Agency hereby adopts revenue allocation financing provisions as authorized by the
Act, effective retroactively to January 1, 2021. These revenue allocation provisions shall apply
to all taxing districts which are located in or overlap the Revenue Allocation Area shown and
described on Attachments 1 and 2 to this Plan. The Agency shall take all actions necessary or
convenient to implement these revenue allocation financing provisions. The Agency specifically
finds that the equalized assessed valuation of property within the Revenue Allocation Area is
likely to increase as a result of the initiation of the Project.
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The Agency, acting by one or more resolutions adopted by its Board, is hereby authorized
to apply all or any portion of the revenues allocated to the Agency pursuant to the Act to pay as
costs are incurred(pay-as-you-go) or to pledge all or any portion of such revenues to the
repayment of any moneys advance-funded by developers or property owners,borrowed,
indebtedness incurred, or notes or bonds issued by the Agency to finance or to refinance the
Project Costs (as defined in Idaho Code Section 50-2903(14)) of one or more urban renewal
projects.
The Agency may consider a note or line of credit issued by a bank or lending institution
premised upon revenue allocation funds generated by a substantial private development
contemplated by the Study, as defined in Section 502.1,which would allow the Agency to more
quickly fund the public improvements contemplated by this Plan. Likewise, a developer/owner
advanced funding of certain eligible public infrastructure improvements to be reimbursed
pursuant to an owner participation agreement could achieve the same purpose.
Upon enactment of a City Council ordinance finally adopting these revenue allocation
financing provisions and defining the Revenue Allocation Area described herein as part of the
Plan, there shall hereby be created a special fund of the Agency into which the County Treasurer
shall deposit allocated revenues as provided in Idaho Code Section 50-2908. The Agency shall
use such funds solely in accordance with Idaho Code Section 50-2909 and solely for the purpose
of providing funds to pay the Project Costs, including any incidental costs, of such urban renewal
projects as the Agency may determine by resolution or resolutions of its Board.
A statement listing proposed public improvements and facilities, a schedule of
improvements, an economic feasibility study, estimated project costs, fiscal impact upon other
taxing districts, and methods of financing project costs required by Idaho Code Section 50-2905
is included in this Plan and in Attachment 5 to this Plan. This statement necessarily incorporates
estimates and projections based on the Agency's and consultants' present knowledge and
expectations. The Agency is hereby authorized to adjust the presently anticipated urban renewal
projects and use of revenue allocation financing of the related Project Costs to effectuate the
general objectives of the Plan in order to account for revenue inconsistencies, market
adjustments, future priorities, developers/owners seeking Agency assistance pursuant to an
owner participation agreement, and unknown future costs. Agency revenue and the ability to
fund reimbursement of eligible Project Costs is more specifically detailed in the annual budget.
The Agency may appropriate funds consisting of revenue allocation proceeds on an
annual basis without the issuance of notes or bonds. The Agency may also obtain advances or
loans from the City or Agency, or private entity and financial institutions in order to immediately
commence construction of certain of the public improvements. Developer advanced funding of
public improvements could also achieve the same purpose. The revenue allocation proceeds are
hereby irrevocably pledged for the payment of the principal and interest on the advance of
monies or making of loans or the incurring of any indebtedness such as bonds, notes, and other
obligations (whether funded, refunded, assumed, or otherwise)by the Agency to finance or
refinance the Project in whole or in part, including reimbursement to developers for the cost of
eligible public improvements.
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Revenues will continue to be allocated to the Agency until termination of the revenue
allocation area as set forth in Section 800. Attachment 5 incorporates estimates and projections
based on the Agency's and its consultants' present knowledge and expectations concerning the
length of time to complete the improvements and estimated future revenues. The activity may
take longer depending on the significance and timeliness of development. Alternatively, the
activity may be completed earlier if revenue allocation proceeds are greater, or the Agency
obtains additional funds from another source.
The revenue allocation proceeds are hereby irrevocably pledged for the payment of the
principal and interest on the advance of monies or making of loans or the incurring of any
indebtedness such as bonds, notes, and other obligations (whether funded, refunded, assumed, or
otherwise)by the Agency to finance or refinance the Project in whole or in part, including
reimbursement to any owner/developer for the cost of eligible public improvements pursuant to
an owner participation agreement.
The Agency is authorized to make such pledges as to specific advances, loans, and
indebtedness as appropriate in carrying out the Project.
The Agency reserves the right to either pay for Project Costs from available revenue
(pay-as-you-go basis) or borrow funds by incurring debt through notes or other obligations.
Revenue allocation proceeds are deemed to be only a part of the proposed funding
sources for the payment of public improvements and other project improvements. Additionally,
project funding is proposed to be phased for the improvements, allowing various sources of
funds to be accumulated for use.
502.1 Economic Feasibility Study
Attachment 5 constitutes the Economic Feasibility Study (the "Study"), prepared by
Kushlan I Associates. The Study constitutes the financial analysis required by the Act and is
based upon existing information from property owners, developers, the Agency, the City, and
others.
502.2 Assumptions and Conditions/Economic Feasibility
Statement
The information contained in Attachment 5 assumes certain completed and projected
actions. All debt is projected to be repaid no later than the duration period of the Plan. The total
amount of bonded indebtedness (and all other loans or indebtedness), developer reimbursement
and the amount of revenue generated by revenue allocation are dependent upon the extent and
timing of private development. Should all of the proposed development take place as projected,
the project indebtedness could be extinguished earlier, dependent upon the bond sale documents
or other legal obligations. Should private development take longer to materialize, or should the
private development be substantially less than projected, then the amount of revenue generated
will be substantially reduced and debt may continue for its full term.
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The Plan and the Plan Attachments incorporate estimates and projections based on the
Agency's and consultants' present knowledge and expectations. The Plan proposes certain
public improvements as set forth in Attachment 5, which will facilitate mixed-use commercial,
residential, office and retail development in the Revenue Allocation Area.
The assumptions set forth in the Study are based upon the best information available to
the Agency and its consultants through public sources or discussions with property owners,
developers, the City, and others. The information has been analyzed by the Agency and its
consultants in order to provide an analysis that meets the requirements set forth under the Law
and Act. At the point in time when the Agency may seek a loan from lenders or others, a more
detailed and then-current financial pro forma will be presented to those lenders or underwriters
for analysis to determine the borrowing capacity of the Agency. As set forth herein, the Agency
reserves the right to fund the Project on a"pay-as-you-go"basis. The Agency Board will
prioritize the activities set forth in this Plan and determine what funds are available and what
activities can be funded. The Agency will establish those priorities through its mandated annual
budgetary process.
The list of public improvements, or activities within Attachment 5 are prioritized by way
of feasibility based on estimated revenues to be received, amounts funded, and by year of
funding. The projected timing of funding is primarily a function of the availability of financial
resources and market conditions but is also strategic, considering the timing of anticipated or
projected private development partnership opportunities and the ability of certain strategic
activities to stimulate development at a given point in time within the duration of the Plan and
Project Area.
The assumptions concerning revenue allocation proceeds are based upon certain
anticipated or projected new developments, assessed value increases, and assumed tax levy rates
as more specifically set forth in Attachment 5. Further, the financial analysis set forth in
Attachment 5 has taken into account and excluded levies that do not flow to the Agency
consistent with Idaho Code § 50-2908. In projecting new construction, the Study considered
parcels identified as expected to develop over the life of the Project Area, communications with
potential developers and City staff, and historical market absorption rates for commercial, retail,
and residential improvements.
The types of new construction expected in the Project Area are mixed-use
residential(including affordable and workforce housing), commercial, office and retail projects,
and related public improvements, including streetscapes, installation and/or improvements to
public open spaces and plazas. The Project Area has potential for a significant increase in
mixed-use, high-density residential, commercial, and retail growth due to the location of the
Project Area. However, without a method to construct the identified public improvements such
as main water and sewer lines, street infrastructure, and pedestrian amenities, development is
unlikely to occur in much of the Project Area.
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It is understood that application of certain exemptions, including the homeowner's
exemption and Idaho Code Section 63-602K,which provides for personal property tax
exemption to businesses may have the effect of reducing the increment value,which in turn
reduces revenue.
502.3 Ten Percent Limitation
Under the Act, the base assessed valuation for all revenue allocation areas cannot exceed
gross/net ten percent(10%) of the current assessed taxable value for the entire City. According to
the Ada County Assessor, the current non-equalized assessed taxable value for the City as of
January 1, 2021,4 less homeowners' exemptions, is $10,375,837,804. Therefore, the 10% limit is
$1,037,583,780.
The adjusted base assessed value of each of the existing revenue allocation areas as of
January 1, 2021, is as follows:
Downtown Districts $146,334,050
Ten Mile District $39,539,125
Union District $2,144,360
Proposed Northern Gateway District $68,832,974
Proposed Linder District $11,978,500
Proposed Union District Addition $3,414,100
The adjusted base values for the combined existing and proposed revenue allocation areas
and the estimated base value for the proposed Project Area, less homeowners' exemptions, is
$272,243,109, which is less than 10% of the City's 2021 taxable value.
502.4 Financial Limitation
The Study identifies a number of capital improvement projects. Use of any particular
funding source for any particular purpose is not assured or identified. Use of the funding source
shall be conditioned on any limitations set forth in the Law, the Act, by contract, or by other
federal regulations. If revenue allocation funds are unavailable, then the Agency will need to use
a different funding source for that improvement.
The amount of funds available to the Agency from revenue allocation financing is
directly related to the assessed value of new improvements within the Revenue Allocation Area.
Under the Act, the Agency is allowed the revenue allocation generated from inflationary
increases and new development value. Increases have been assumed based upon the projected
a Due to the timing of the assessment process and creation of this Plan,the 2021 (non-equalized)values have been
used to establish compliance with the 10%limitation.Using the 2021 values,the total adjusted base value of the
existing and proposed revenue allocation areas combined with the value of this Project Area are less than 2.62%of
the total taxable value of the City.
5 Less area deannexed by the First Amendment to the Meridian Revitalization Plan Urban Renewal Project,and the
Second Amendment to the Meridian Revitalization Plan Urban Renewal Project.
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value of new development as that development occurs along with possible land reassessment
based on a construction start.
The Study, with the various estimates and projections, constitutes an economic feasibility
study. Costs and revenues are analyzed, and the analysis shows the need for public capital funds
during the project. Multiple financing sources including annual revenue allocations, developer
contributions, city contributions, interfund loan, property disposition and other funds are shown.
This Study identifies the kind, number, and location of all proposed public works or
improvements, a detailed list of estimated project costs, a description of the methods of financing
illustrating project costs, and the time when related costs or monetary obligations are to be
incurred.6 Based on these funding sources, the conclusion is that the Project is feasible.
The Agency reserves the discretion and flexibility to use revenue allocation proceeds in
excess of the amounts projected in the Study for the purpose of funding the additional identified
projects and improvements. The projections in the Study are based on reasonable assumptions
and existing market conditions. However, should the Project Area result in greater than
anticipated revenues, the Agency specifically reserves the ability to fund the additional activities
and projects identified in this Plan. Further, the Agency reserves the discretion and flexibility to
use other sources of funds unrelated to revenue allocation to assist in the funding of the
improvements and activities identified, including but not limited to disposition and development
agreements and owner participation agreements. The Agency may also re-prioritize projects
pursuant to market conditions,project timing, funding availability, and other considerations as
more specifically detailed in the annual budget.
The proposed timing for the public improvements may have to be adjusted depending
upon the availability of some of the funds and the Agency's ability to finance any portion of the
Project. Any adjustment to Project timing or funding is technical or ministerial in nature
and shall not be considered a modification of the Plan pursuant to Idaho Code Section 50-
2903A.
Attachment 5 lists those public improvements the Agency intends to construct or fund
through the term of the Plan. The costs of improvements are estimates only as it is impossible to
know with any certainty what the costs of improvements will be in future years. There is general
recognition that construction costs fluctuate and are impacted by future unknowns, such as, the
cost of materials and laborers. Final costs will be determined by way of construction contract
public bidding or by an agreement between the developer/owner and Agency. The listing of
public improvements does not commit the Agency, City, or other public entity, to any particular
level of funding; rather, identification of the activity in the Plan allows the Agency to negotiate
the terms of any reimbursement with the developer and/or the public entities. This Plan does not
financially bind or obligate the Agency to any project or property acquisition; rather, for
purposes of determining the economic feasibility of the Plan certain projects and expenditures
have been estimated and included in the analysis. Agency revenue and the ability to fund
reimbursement of eligible Project Costs is more specifically detailed in any participation
agreement and in the annual budget adopted by the Agency Board. The proposed location and
'See Idaho Code§ 50-2905.
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siting of the proposed public infrastructure and other improvement projects in the Project Area
are generally described in Attachment 5 recognizing that the specific location of the projects will
depend on the type and timing of development. The change in the location of the improvements
shown in Attachment 5 does not constitute a modification to the Plan.
The Agency reserves its discretion and flexibility in deciding which improvements are
more critical for development or redevelopment, and the Agency intends to coordinate its public
improvements with associated development by private developers/owners. Where applicable,
the Agency also intends to coordinate its participation in the public improvements with the
receipt of certain grants or loans which may require the Agency's participation in some
combination with the grant and loan funding.
Generally, the Agency expects to develop those improvements identified in Attachment 5
first, in conjunction with private development within the Project Area generating the increment
as identified in Attachment 5.
The Plan has shown that the equalized valuation of the Revenue Allocation Area as
defined in the Plan is likely to increase as a result of the initiation and completion of urban
renewal projects pursuant to the Plan.
502.5 [Reserved]
502.6 Participation with Local Improvement Districts and/or Business
Improvement Districts
Under the Idaho Local Improvement District ("LID") Code, Chapter 17, Title 50, Idaho
Code, the City has the authority to establish local improvement districts for various public
facilities, including,but not limited to, streets, curbs, gutters, sidewalks, storm drains,
landscaping, and other like facilities. To the extent allowed by the Law and the Act, the Agency
reserves the authority,but not the obligation, to participate in the funding of local improvement
district facilities. This participation may include either direct funding to reduce the overall cost
of the LID or to participate as an assessed entity to finance the LID project. Similarly, to the
extent allowed by the Law and the Act, the Agency reserves the authority, but not the obligation,
to participate in the funding of the purposes specified under the Business Improvement Districts
Code, Chapter 26, Title 50, Idaho Code.
502.7 Issuance of Debt and Debt Limitation
Any debt incurred by the Agency as allowed by the Law and Act shall be secured by
revenues identified in the debt resolution or revenue allocation funds as allowed by the Act. All
such debt shall be repaid within the duration of this Plan, except as may be authorized by law.
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502.8 Impact on Other Taxing Districts and Levy Rate
An estimate of the overall impact of the revenue allocation project on each taxing district
is shown in the Study through the new development projections set forth in Attachment 5.
The assessed value for each property in a revenue allocation area consists of a base value
and an increment value. The base value is the assessed value as of January 1 of the year in
which a revenue allocation area is approved by a municipality,with periodic adjustments
allowed by Idaho law. The increment value is the difference between the adjusted base assessed
value and current assessed taxable value in any given year while the property is in a revenue
allocation area. Under Idaho Code Section 63-802, taxing entities are constrained in establishing
levy rates by the amount each budget of each taxing district can increase on an annual basis.
Taxing entities submit proposed budgets to the County Board of Commissioners, which budgets
are required to comply with the limitations set forth in Idaho Code Section 63-802. Therefore,
the impact of revenue allocation on the taxing entities is more of a product of the imposition of
Idaho Code Section 63-802, then the effect of urban renewal.
The County Board of Commissioners calculates the levy rate required to produce the
proposed budget amount for each taxing entity using the assessed values which are subject to
each taxing entity's levy rate. Assessed values in urban renewal districts which are subject to
revenue allocation(incremental values) are not included in this calculation. The combined levy
rate for the taxing entities is applied to the incremental property values in a revenue allocation
area to determine the amount of property tax revenue which is allocated to an urban renewal
agency. The property taxes generated by the base values in the urban renewal districts and by
properties outside revenue allocation areas are distributed to the other taxing entities. Properties
in revenue allocation areas are subject to the same levy rate as they would be outside a revenue
allocation area. The difference is how the revenue is distributed. If the overall levy rate is less
than assumed, the Agency will receive fewer funds from revenue allocation.
In addition, without the Revenue Allocation Area and its ability to pay for public
improvements and public facilities, fewer substantial improvements within the Revenue
Allocation Area would be expected during the term of the Plan; hence, there would be lower
increases in assessed valuation to be used by the other taxing entities. The Study's analysis is
premised upon the fact the proposed development would not occur but for the ability to use
revenue allocation funds to fund certain significant public infrastructure improvements.
One result of new construction occurring outside the revenue allocation area(see Idaho
Code §§ 63-802 and 63-301A) is the likely reduction of the levy rate as assessed values increase
for property within each taxing entity's jurisdiction$. From and after December 31, 2006, Idaho
7 House Bill 389 passed during the 2021 Legislative Session,effective in significant part as of January 1,2021,
further limits a taxing entity's ability to increase the property tax portion of its budget. The Study has considered the
impact of House Bill 389 on the Project's overall feasibility.
8 House Bill 389 amended Idaho Code Sections 63-802 and 63-301A limiting the value placed on the new
construction roll and available to a taxing district for a budget capacity increase. This could result in lower levy
rates over time.
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Code Section 63-301A prohibits taxing entities from including, as part of the new construction
roll, the increased value related to new construction within a revenue allocation area until the
revenue allocation authority is terminated. Any new construction within the Project Area is not
available for inclusion by the taxing entities to increase their budgets. Upon termination of this
Plan and Project Area or deannexation of area, the taxing entities will be able to include a
percentage of the accumulated new construction roll value in setting the following year's budget
and revenue pursuant to Idaho Code Sections 63-802 and 63-301A.
As the 2021 certified levy rates are not determined until late September or October 2021,
the 2020 certified levy rates have been used in the Study for purposes of the analysis.10 Further,
it is anticipated that the parcel located in unincorporated Ada County will be annexed in prior to
City Council consideration of this Plan, and therefore, the affected taxing districts for the City
have been identified. Those taxing districts and their 2020 certified levy rates are as follows:"
Taxing Districts: Lew Rates:
The City of Meridian .002230856
The West Ada School District(School District No. 2) .000014472
Ada County .002149935
Emergency Medical District/Ada County Ambulance .000118422
Mosquito Abatement District .000021106
The Ada County Highway District .000701539
Meridian Library District .000430489
Meridian Cemetery District .000048343
Western Ada Recreation District .000037736
College of Western Idaho .000124266
TOTAL12 .005877164
House Bill 587, as amended in the Senate, effective July 1, 2020, amends Idaho Code
Section 50-2908 altering the allocation of revenue allocation funds to the Agency from the Ada
County Highway District levy 13. This amendment will apply to this Project Area and provides:
"[i]n the case of a revenue allocation area first formed or expanded to include the property on or
after July 1, 2020, all taxes levied by any highway district,unless the local governing body that
created the revenue allocation area has responsibility for the maintenance of roads or highways"
9 Pursuant to House Bill 389,80%of the total eligible increment value is added to the new construction roll.
10 Due to the timing of the taxing districts'budget and levy setting process,certification of the 2021 levy rates did
not occur until this Plan had been prepared. In order to provide a basis to analyze the impact on the taxing entities,
the 2020 levy rates are used. Use of the 2020 levy rates provides a more accurate base than estimating the 2021
levy rates.
11 It is unclear how the personal property tax exemption set forth in Idaho Code Section 63-602KK,and as amended
by House Bill 389,effective January 1,2022,may impact the levy rate.
12 Net of voter approved bonds and levies.
" Senate Bill 1107,as amended in the Senate,effective July 1,2021,made a corresponding amendment to Idaho
Code Section 40-1415(3)to address the responsibility for funding certain urban renewal projects.
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will be allocated to the applicable highway district, which in this case is the Ada County
Highway District.
However, amended Idaho Code Section 50-2908 further provides the highway district
and Agency may enter into an agreement for a different allocation. A copy of any agreement is
required to be submitted to the Idaho State Tax Commission and to the Ada County Clerk by the
Ada County Highway District as soon as practicable after the parties have entered into the
agreement and by no later than September 1 of the year in which the agreement takes effect. The
Plan includes significant transportation elements, and the Agency intends to work with the Ada
County Highway District to enter into an agreement allowing the Agency to retain the revenues
from the highway district levies.
The Study has made certain assumptions concerning the levy rate. The levy rate is
estimated to be 10% lower than the combined 2020 certified levy rate to adjust for the impact of
House Bill 389, as well as considering the rapidly increasing property values. The levy rate is
anticipated to remain level for the life of the Project Area, As the actual impact of the property
value fluctuations on the levy rate is unknown, the Study has assumed a combined conservative
levy rate of.0053. Land values are estimated to inflate at 8%/year for five (5)years and then
inflate at a rate of 4%/year for the remaining duration of the Project Area. Improvement values
are estimated to inflate at a rate of 10%/year for five (5)years, and thereafter are estimated to
inflate at a rate of 5%/year for the duration of the Project Area. Estimated new development is
anticipated to be fully on the tax rolls in years 2025, 2027, 2028, 2029, 2030, 2032, 2033 and
2035. It is further estimated the properties in the district will generate $500,000 in taxable value
annually. If the overall levy rate is less than projected, or if expected development fails to occur
as estimated, the Agency shall receive fewer funds from revenue allocation.
Pursuant to Idaho Code Section 50-2908, the Agency is not entitled to revenue allocation
proceeds from certain levy increases which are allowed by either specific statutory authorization
or approved by an election of the qualified electors of the particular taxing district. Therefore,
for any levy election, the Agency will not receive revenue allocation funds which would have
been generated by imposing that levy on the assessed valuation within the Project Area. The
Study has taken this statute into account.
503 Phasing and Other Fund Sources
The Agency anticipates funding only a portion of the entire cost of the public
improvements shown on Attachment 5. Other sources of funds may include City, other public
entity partners, and developer participation. It is important to note this Plan does not financially
bind or obligate the City, Agency and/or any other public entity to any project or property
acquisition. Agency and/or other public entity participation in any project shall be determined by
the amount of revenue allocation funds generated and pursuant to the annual budgeting process.
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504 Lease Revenue, Parking Revenue, and Bonds
Under the Law(see Idaho Code § 50-2012), the Agency is authorized to issue revenue
bonds to finance certain public improvements identified in the Plan. Under that type of
financing, the public entity would pay the Agency a lease payment annually which provides
certain funds to the Agency to retire the bond debt. Another variation of this type of financing is
sometimes referred to as conduit financing, which provides a mechanism where the Agency uses
its bonding authority for the Project, with the end user making payments to the Agency to retire
the bond debt. These sources of revenues are not related to revenue allocation funds and are not
particularly noted in the Study, because of the "pass through" aspects of the financing. Under
the Act, the economic feasibility study focuses on the revenue allocation aspects of the Agency's
financial model.
These financing models typically are for a longer period of time than the 20-year period
set forth in the Act. However, these financing models do not involve revenue allocation funds,
but rather funds from the end users which provide a funding source for the Agency to continue to
own and operate the facility beyond the term of the Plan as allowed by Idaho Code Section 50-
2905(8) as those resources involve funds not related to revenue allocation funds.
505 Membership Dues and Support of Community Economic Development
The Act is premised upon economic development being a valid public purpose. To the
extent allowed by the Law and the Act, the Agency reserves the authority to use revenue
allocation funds to contract with non-profit and charitable organizations established for the
purpose of supporting economic development and job creation. Additionally, the Agency
reserves the authority to expend revenue allocation funds to join, participate and support non-
profit organizations established to support Agency best practices and administration. The
District Operating Expenses identified in the Study shall be deemed to include expenditures for
the purposes described in this section as may be deemed appropriate during the annual budgetary
process.
600 ACTIONS BY THE CITY AND OTHER PUBLIC ENTITIES
The City shall aid and cooperate with the Agency in carrying out this Plan and shall take
all actions necessary to ensure the continued fulfillment of the purposes of this Plan and to
prevent the recurrence or spread in the area of conditions causing deterioration. Actions by the
City may include, but not be limited to, the following:
a. Institution and completion of proceedings necessary for changes and
improvements in private and publicly owned public utilities within or affecting
the Project Area.
b. Revision of zoning (if necessary)within the Project Area to permit the land uses
and development authorized by this Plan.
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C. Imposition, wherever necessary, of appropriate controls within the limits of this
Plan upon parcels in the Project Area to ensure their proper development and use.
d. Provision for administrative enforcement of this Plan by the City after
development. The City and the Agency may develop and provide for
enforcement of a program for continued maintenance by owners of all real
property, both public and private,within the Project Area throughout the duration
of this Plan.
e. Building Code enforcement.
f. Performance of the above actions and of all other functions and services relating
to public peace, health, safety, and physical development normally rendered in
accordance with a schedule which will permit the development and/or
redevelopment of the Project Area to be commenced and carried to completion
without unnecessary delays.
g. The undertaking and completing of any other proceedings necessary to carry out
the Project.
h. Administration of Community Development Block Grant funds that may be made
available for this Project.
i. Appropriate agreements with the Agency for administration, supporting services,
funding sources, and the like.
j. Joint funding of certain public improvements, including but not limited to those
identified in this Plan and Attachment 5 to the Plan.
k. Use of public entity labor, services, and materials for construction of the public
improvements listed in this Plan.
1. Assist with coordinating and implementing the public improvements in the
Project Area identified in the Study.
The foregoing actions, if taken by the City and/or the Ada County Highway District,
do not constitute any commitment for financial outlays by the City.
In addition to the above, other public entities shall aid and cooperate with the Agency in
carrying out this Plan and shall take all actions necessary to ensure the continued fulfillment of
the purposes of this Plan.
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601 Maintenance of Public Improvements
The Agency has not identified any commitment or obligation for long-term maintenance
of the public improvements identified. The Agency will need to address this issue with the
appropriate entity,public or private, who has benefited from or is involved in the ongoing
preservation of the public improvement. The Agency expects to dedicate public improvements
to the City.
700 ENFORCEMENT
The administration and enforcement of this Plan, including the preparation and execution
of any documents implementing this Plan, shall be performed by the Agency and/or the City.
800 DURATION OF THIS PLAN, TERMINATION,AND ASSET REVIEW
Except for the nondiscrimination and nonsegregation provisions which shall run in
perpetuity, the provisions of this Plan shall be effective, and the provisions of other documents
formulated pursuant to this Plan, shall be effective for twenty (20)years from the effective date
of the Plan subject to modifications and/or extensions set forth in Idaho Code Section 50-2904.
The revenue allocation authority will expire on December 31, 2041, except for any revenue
allocation proceeds received in calendar year 2042, as contemplated by Idaho Code Section 50-
2905(7). The Agency may use proceeds in 2042 to complete the projects set forth herein. As
stated in the Plan, any disposition and development agreement or owner participation agreement
obligations will cease as of December 31, 2041.
Idaho Code Section 50-2903(5)provides the Agency shall adopt a resolution of intent to
terminate the revenue allocation area by September 1. In order to provide sufficient notice of
termination to the affected taxing districts to allow them to benefit from the increased budget
capacity, the Agency will use its best efforts to provide notice of its intent to terminate this Plan
and its revenue allocation authority by May 1, 2042, or if the Agency determines an earlier
terminate date, then by May 1 of the early termination year:
a. When the Revenue Allocation Area plan budget estimates that all financial
obligations have been provided for, the principal of and interest on such moneys,
indebtedness, and bonds have been paid in full or when deposits in the special
fund or funds created under this chapter are sufficient to pay such principal and
interest as they come due, and to fund reserves, if any, or any other obligations of
the Agency funded through revenue allocation proceeds shall be satisfied and the
Agency has determined no additional project costs need be funded through
revenue allocation financing, the allocation of revenues under Idaho Code Section
50-2908 shall thereupon cease; any moneys in such fund or funds in excess of the
amount necessary to pay such principal and interest shall be distributed to the
affected taxing districts in which the Revenue Allocation Area is located in the
same manner and proportion as the most recent distribution to the affected taxing
districts of the taxes on the taxable property located within the Revenue
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Allocation Area; and the powers granted to the urban renewal agency under Idaho
Code Section 50-2909 shall thereupon terminate.
b. In determining the termination date, the Plan shall recognize that the Agency shall
receive allocation of revenues in the calendar year following the last year of the
revenue allocation provision described in the Plan.
C. For the fiscal year that immediately predates the termination date, the Agency
shall adopt and publish a budget specifically for the projected revenues and
expenses of the Plan and make a determination as to whether the Revenue
Allocation Area can be terminated before January 1 of the termination year
pursuant to the terms of Idaho Code Section 50-2909(4). In the event that the
Agency determines that current tax year revenues are sufficient to cover all
estimated expenses for the current year and all future years,by May 1, but in any
event, no later than September 1, the Agency shall adopt a resolution advising and
notifying the local governing body, the county auditor, and the State Tax
Commission, recommending the adoption of an ordinance for termination of the
Revenue Allocation Area by December 31 of the current year, and declaring a
surplus to be distributed as described in Idaho Code Section 50-2909 should a
surplus be determined to exist. The Agency shall cause the ordinance to be filed
with the office of the county recorder and the Idaho State Tax Commission as
provided in Idaho Code Section 63-215.
Upon termination of the revenue allocation authority of the Plan to the extent the Agency
owns or possesses any assets, subject to the following paragraph, the Agency intends to dispose
of any remaining assets by granting or conveying or dedicating such assets to the City, unless
based on the nature of the asset, disposition to another public entity is more appropriate.
As allowed by Idaho Code Section 50-2905(8), the Agency may retain assets or revenues
generated from such assets as long as the Agency shall have resources other than revenue
allocation funds to operate and manage such assets. Similarly, facilities which provide a lease
income stream to the Agency for full retirement of the facility debt will allow the Agency to
meet debt services obligations and provide for the continued operation and management of the
facility. For those assets which do not provide such resources or revenues, the Agency will
likely convey such assets to the City, depending on the nature of the asset.
900 PROCEDURE FOR AMENDMENT OR MODIFICATION
To the extent there are any outstanding loans or obligations, this Plan should not be
modified pursuant to the provisions set forth in Idaho Code Section 50-2903A. Modification of
this Plan results in a reset of the base value for the year immediately following the year in which
the modification occurred to include the current year's equalized assessed value of the taxable
property in the revenue allocation area, effectively eliminating the Agency's revenue stream as
more fully set forth in Idaho Code Section 50-2903A subject to certain limited exceptions
contained therein. As more specifically identified above, the Agency's projections are based on
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estimated values, estimated levy rates, estimated future development, and estimated costs of
future construction/improvements. Annual adjustments, as more specifically set forth in the
Agency's annual budget, will be required to account for more/less estimated revenue and
prioritization of projects. Any adjustments for these stated purposes are technical and ministerial
and are not deemed a modification under Idaho Code Section 50-2903A(1)(a)(i).
1000 SEVERABILITY
If any one or more of the provisions contained in this Plan to be performed on the part of
the Agency shall be declared by any court of competent jurisdiction to be contrary to law, then
such provision or provisions shall be null and void and shall be deemed separable from the
remaining provisions in this Plan and shall in no way affect the validity of the other provisions of
this Plan.
1100 ANNUAL REPORT AND OTHER REPORTING REQUIREMENTS
Under the Law, the Agency is required to file with the City, on or before March 31 of
each year, a report of the Agency's activities for the preceding calendar year,which report shall
include the financial data and audit reports required under sections 67-1075 and 67-1076, Idaho
Code. This annual report shall be considered at a public meeting to report these findings and
take comments from the public.
Additionally, the Agency must comply with certain other reporting requirements as set
forth in Idaho Code Section 67-450E14, the local government registry portal, the tax commission
plan repository,see Idaho Code § 50-2913, and the tax commission's plan modification annual
attestation, see Idaho Code § 50-2903A. Failure to report the information requested under any of
these statutes results in significant penalties, including loss of increment revenue, and the
imposition of other compliance measures by the Ada County Board of County Commissioners.
1200 APPENDICES,ATTACHMENTS, EXHIBITS, TABLES
All attachments and tables referenced in this Plan are attached and incorporated herein by
their reference. All other documents referenced in this Plan but not attached are incorporated by
their reference as if set forth fully.
14 House Bill 73,passed during the 2021 Legislative Session,significantly effective as of January 1,2021,with the
remaining sections in full force and effect on and after January 1,2022,establishes a uniform accounting system for
local governmental entities,including urban renewal agencies,which is to be administered by the State Controller.
Going forward,Idaho Code Section 67-450E is amended to Idaho Code Section 67-1076.
42 Page 50
Item#1.
Attachment 1
Boundary Map of Northern Gateway District Urban Renewal Project Area and Revenue
Allocation Area
Page 51
Item#1.
EXHIBIT B
SKETCH TO ACCOMPANY URBAN RENEWAL DISTRICT DESCRIPTION
FOR MERIDIAN DEVELOPMENT CORPORATION LOCATED IN THE
SE 114 OF THE SE 114 OF SECTION 1, AND IN THE NE 114
OF THE NE 114 OF SECTION 72, TOWNSHIP 3 NORTH, RANGE
1 WEST, ALSO BEING IN THE S 112 OF THE SW 114 OF
SECTION 6, AND IN THE NW 114 OF SECTION 7, AND IN THE
N 11.E OF THE Sly 114 OF SECTION 7, TOWNSHIP J NORTH,
RANGE 7 EAST, BOISE MERIDIAN, ADA COUNTY, IDAHO
714
ry
LEGEND
URD BOUNDARY ko
� ko
s V76 Cs V76
- - -
URD AREA N 89'08'.51" E 24p4.26'
{Q m
SEE SHEET 2 OF 5 p
SEE SHEET 3 OF 5 Z
/BASIS �F EEAR G, Z
14 1 6 .58 34 4. 1�4
-dkly
-
S 892653" E 2,555.27' 21117 AIRIN
W CHERRY LANE
SEE SHEET 3 OF .5
EES E 4OF5
Zq a
p�A AN Z E SHEET 5 OF .5 Z
Ns D L
c fi
4 U n o V4 C 114
18 7 N 59'35 22 E —2394.97'
-V P E PINE AVENUE
A . K()()
CIVIL SURVEY CONSULTANTS, INC.
2893 SOUTH MERIDIAN ROAD SCALE 1'=1000'
MERIDIAN, IDAHO 83642
(208)8$$-4312
SHEET I Page 52
Item#1.
E. HISIT B (CONTINUED)
5EE 5HECT 3 OF 5 SEE
12 7 N 0'18'09" E 1324,40' DETAIL B S V 16
7 6 ` ERID R 1.?fi 19"E 43.51
-+ 197 79' L-12
L-10
C-1 0
L- q-
L-11
o,W N O'18 09"E E--12
,z , 28.88'
6�
N 126'19" E
DETAIL B
No SCALE
I CS 7�16
^� Co
l� L-5 �E 5'e C/ LEGEND
a 1 s� ❑ URD 80UNDARY
�l I UU
¢ �9 O f �` URD AREA
F � \4'
o �A , Ko fj
GIVIL SURVEY CONSULTANTS,INC.
2893 SOUTH MERIDIAN ROAD
5EE MERIDIAN,IDAHO 83642
DETAIL A (208)8884312
L-4 62. 19'
L-1 707• LINE DATA
PRINT OF 4-2 �
L-3 6.324 �P LINE BEARING DISTANCE
BEGINNING L-2 L-1 s 88'35'17" W 35.03,
E BAR RA L-2 N 1 24�43" W 54.39'
DRIVE L-3 N 27'07'54" W 75.58'
V L-4 N 51-70'43" W 78,50'
L-5 N d'29'39" E 5.24'
DETAIL A L-6 s 38.57'10" W 70o.83'
N0 SCALE 4-7 N 64.55'1 1" W 97.10'
1 4 N 0'18'19" E L--8 s 38.72:39" W 48.77'
13OO.92' 4-9 N 89.4229" W 783.94'
CS V16 L-10 N 65'44 09" W 8.70'
L-1 7 N 69'37 07' W 4.50'
L-12 N 0-18'09" E 90.62'
CURVE DATA
SHEET 2 OF S CURVE DELTA I RADIUS ARC TANGENT I CHARD I CHO
C-1 52.04 52" 35.00 31.81 17.10 1 .30.73 I S 641 Page 56
Item#1.
EXHISIT S (CONTINUED)
� o
1
� z
N 89'41'51" W 669,50' S 1/16
6 1.50'
48.00' W
Q
cz
SCALE- 1 —.3Q0' �
LEGEND
UR0 BOUNDARY
P
URU AREA �
o�p LA
EN S _ 1979.77 S 89 26 S 357 11' 7 6
O �� —S 69'26 54" E 2655.27' 318 39' —17 7 7
-4 W CHERRY LANE L-13 L- 16 �v
18 SV L-14sr
L-15 L-19
�1- 9rE of �QP '� W '' L-22
A . K09��
❑ � L—21 "-u ❑ �
� Z �
LINE DATA o q
LINE BEARING DISTANCE
L—73 5 0'33'06" W 5T.00'
L—14 5 62"43'15" E 12.62' zt
L—75 5 86'48'50" E 60.07'
L-16 N 6624'13" E" 72.07'
L-77 5 8926'54" E 782.07' CIVIL SURVEY CONSULTANTS, INC.
L-18 S 4534 48" E 47.87' 2893 SOUTH MERIDIAN ROAD 114
L-79 5 J25'19" E 87.40' MERIDIAN, IDAHO83642
L-20 5 02J29" W 119.26' t208)888-4392
L-21 5 59.35'31" E 5T 50' SHEET 3 Page 54
L-22 N 0'23 29" E 9_J2'
Item#1.
EXHIBIT B (CONTINUED)
N MERIOMN ROAD
N D 23 29" E 2652.11' SEE .SHEET 3 aF 5 12 1
S D'2 29" O 15 9' L-2�
�j 46.00' R, I
C 25
+v
SCALE- 1=.30D' p
ul
zo
LEGEND NE 2ND 112 STREET ("I
URD BOUNDARY m
Is
U90 AREA W Q a
� Z
� N 3RO 5
J 9.78' N D 35 DO" C 714 6 '
652,57' 2
18780 52 05' 19
to 49 199'
�F A , K p'3 N 0-36�25" E
31C1.05'
POINT OF
f BEGINNING
LINE DATA 114
LINE BEARING DISTANCE — --
L—22 N ❑23 29" E 9.32' N ❑'34 47" E 2694.28'
L-23 N 89 3658" E 240,02'
L-24 5 89'36 58" W 50.01' CIVIL SURVEY CONSULTANTS,INC.
L-25 5 02329" W 106.39' 2893SOUTH MERIDIAN ROAD
L-26 5 69-3605" W 750.01' MERIDIAN,IDAHO83642
L-27 N 45 J4'47" E 27,60' (208)888-0312
L-40 IV 45 J4 47" E 2130, SHEET 41
L-41 5 88-2J 46" E 1 62.3S' Page 55
Item#1.
EXHIBIT B (CONTINUED)
N MERIDIAN ROAD
.SCALE 1'-.300' 1/4 N D'23 29" E 26.52.11'
S od�.3 9 W-
LEGEND5 'r
URD BOUNDARY o
URD AREA Q
W W
N MAIN STREET'
= J
*p L L N M
4\C E S I 340.01' oi b;"'
L-31 4 5 0`3,3'24'W L-29 ry ZJ
U7 O I 80.0 290.72'
❑ ' 0 0?' 25 99' 0 01 O'JJ' 4" W
P� aa.o l�OF
f£A . K(Jo
o NE 2ND 1/2 S77?E
°j
_ Z �
0'3T' 3"` 591. 8
25 3' BD.O!' 25 93'
Ql)
Na`3 47
-39
NE 4TH S7REET N 4m
L-37
60.Q 1'
a L 34 E 4TT 57F?EET
L-33
� 4
NE 5TH STREET fll E 57H 5 EET
LINE DATA
LINE BEARING DISTANCE
L-28 5 2344 59" E 9.44' I
L-29 N 89.2636" W 37.00'
L-30 N 89-J547" E 87.19' W
L-31 5 0:32'08" W go.01' C 114 N 0'3447" E 2694,28'
L-32 N 058 55" E Ho.02'
L-33 N 03447" E 60.01' I
L-34 5 89'3547" W 71-98' CIVIL SURVEY CONSULTANTS.INC.
L-55 N 0 J5 03" E 120.38' 2893 SOUTH MERIDIAN ROAD
L-36 N 89-3547" E 11.00' MERIDIAN, IDAHO83642
L-37 N 0-J5 00" E 120.38, (208)888.4312
L-38 N 89.3.5`¢7" E 10.60' SHEET 5
L-39 5 89'36'17" W 70.00' Page 56
Item#1.
Attachment 2
Legal Description of Northern Gateway District Urban Renewal Project Area and Revenue
Allocation Area
Page 57
Item#1.
EXHI BIT A
URBAN RENEWAL DISTRICT BOUNDARY DESCRIPTION
FOR
MERIDIAN DEVELOPMENT CORPORATION
NORTHERN GATEWAY
A description for Urban Renewal District purposes located in the SE 1/4 of the SE 1/4 of Section
1, and in the NE 1/4 of the NE 1/4 of Section 12, Township 3 North, Range 1 West, also being in
the S 1/2 of the SW 1/4 of Section 6, and 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 southeasterly corner of said S 1/2 of the
SW 1/4 of Section 6, from which a brass cap monument marking the southwesterly corner of
said Section 6 bears S 88'35'17" W a distance of 2404.78 feet;
Thence S 88'35'17" W along the southerly boundary of said Section 6 a distance of 389.74 feet
to the POINT OF BEGINNING;
Thence continuing S 88'35'17" W a distance of 35.08 feet to a point;
Thence leaving said southerly boundary N 1'24'43" W a distance of 54.39 feet to a point
marking the southwesterly corner of that PARCEL as shown on Record of Survey No. 2969,
Instrument No. 94082169, found in the office of the Recorder, Ada County, Idaho;
Thence N 27*07'54" W along the southwesterly boundary of said PARCEL a distance of 75.58
feet to a point marking the westerly corner of said PARCEL, said point being the southerly
corner of PARCEL A as described in Warranty Deed Instrument No. 96048180 as found in said
office of the Recorder,-
Thence leaving said southwesterly boundary of said PARCEL and along the southwesterly
boundary of said PARCEL A the following described courses:
Thence N 51'10'43" W a distance of 78.50 feet to a point;
Thence N 71'30'43" W a distance of 684.82 feet to a point;
Thence N 0'29'39" E a distance of.5.24 feet to a point marking the southeasterly corner
of LA PLAYA MANOR ESTATES SUBDIVISION as found in Book 70 of plats at Pages 7187 —
7188 in said office of the Recorder;
Page 1 of 8
Page 58
Item#1.
Thence leaving said Southwesterly boundary of said PARCEL A and along the southwesterly
boundary of said LA PLAYA MANOR ESTATES SUBDIVISION the following described courses:
Thence S 88'51'10" W a distance of 100.93 feet to a point;
Thence N 64a55'11" W a distance of 91.10 feet to a point;
Thence N 52°28'52" W a distance of 886.26 feet to a point on the southerly right-of-way
of E Carmel Drive;
Thence continuing N 52'28'52" W a distance of 60.00 feet to a point on the northerly
right-of-way of E Carmel Drive;
Thence leaving said southwesterly boundary of LA PLAYA MANOR ESTATES SUBDIVISION and
along said northerly right-of-way the following described courses:
Thence 5 38°12'39" W a distance of 48.77 feet to a point;
Thence a distance of 3 1.8 1 feet along the arc of a 35.00 foot radius curve right, said
curve having a central angle of 52'04'52" and a tong chord bearing S 64"15'05" W a
distance of 30.73 feet to a point;
Thence N 89'42'29" W a distance of 183.94 feet to a point:
Thence N 65'44'09" W a distance of 8,70 feet to a point on the easterly right-of-way of
N Meridian Road;
Thence leaving said northerly right-of-way and along said easterly right-of-way the following
described courses:
Thence N 1'26'19" E a distance of 197.79 feet to a point;
Thence N 0a18'09" E a distance of 28.88 feet to a point;
Thence N 89'37'07" W a distance of 4.50 feet to a point;
Thence N 0`18'09" E a distance of 90.62 feet to a point an the northerly boundary of
said 5 1/2 of the SW 1/4 of Section 6;
Pap-e 2 of 8
V Page 59
Item#1.
Thence leaving said easterly right-of-way S 89'08'51" W along said northerly boundary a
distance of 43.51 feet to a point marking the northwesterly corner of said S 1/2 of the SW 1/4
of Section 6;
Thence N 89041'51" W along the northerly boundary of said SE 1/4 of the SE 1/4 of Section 1 a
distance of 48.00 feet to a point on the westerly right-of-way of N Meridian Road, said point
being on the northerly boundary of that PARCEL as shown on Record of Survey No. 9135,
Instrument No. 112011184, found in said office of the Recorder;
Thence continuing N 89°41'51" W along said northerly boundaries a distance of 621.50 feet to a
point marking the northwesterly corner of said PARCEL;
Thence leaving said northerly boundaries S 0'33'44" W along the westerly boundary of said
PARCEL a distance of 1278.48 feet to a point on the right-of-way of W Cherry Lane;
Thence continuing S 0'33'44" W along an extension of said westerly boundary a distance of
43.00 feet to a point on the southerly boundary of said SE 1/4 of the SE 1/4 of Section 1;
Thence leaving said extension S 89'26'54" E along said southerly boundary a distance of 318.39
feet to a point;
Thence leaving said southerly 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 S 62'43'15" E a distance of 12.62 feet to a point on the westerly right-of-way of
NW 2nd 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 2nd 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;
Thence 5 45'34'48" E a distance of 41.81 feet to a point on the westerly right-of-way of
N Meridian Road;
Page 3 of 8
Page 60
Item#1.
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 5 89'36'31" 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 an 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 6;
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 S 0023'29" W a distance of 106.39 feet to a point;
Thence S 89'36'O5" 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 S 0'23'29" W a distance of 1015.39 feet to a point;
Thence S 23'44'S9" E a distance of 9.44 feet to a point on the northerly right-of-way of
E Washington Street;
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;
Page 4 of 8
Page 61
Item#1.
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 5 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 NOURSFSSECOND
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 F A NOURSES SECOND ADDITION;
Thence continuing S 0031'57" 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;
Page S of 8
Page 62
Item#1.
Thence 5 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}Mats 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 0658'55" E a distance of 80.02 feet to a point
marking the southwesterly corner of Block 3 of COTTAGE HOME ADDITION 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 HOME ADDITION;
Thence continuing N 0037'13" 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 89035'47" 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 89'3547" E a distance of 99.67 feet to a point the northwesterly corner of
Lot 1 of Block 1 of EASTSIDE PA RK SUBDIVISION as found in Book 20 of plats at Pages 1312—
1313 in said office of the Recorder;
Page 6 of 8
Page 63
Item#1.
Thence continuing N 89035'47" 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" £ a distance of 60.01 feet to the
southeasterly corner of said Lot 1 of Block 3-1
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 89'3547" 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 60.01
feet to a point on said easterly right-of-way;
Thence continuing N 0'34'47" E along said easterly right-of-way a distance of 301.48 feet to a
point on the southerly boundary of FORTY THREE NORTH SUBDIVISION as found in Book 116 of
plats at Pages 17417— 17419 in said office of the Recorder;
Thence S 89°36'17" W along said southerly boundary a distance of 10.00 feet to a point marking
the southwesterly corner of said FORTY THREE NORTH SUBDIVISION;
Thence along the westerly boundary of said FORTY THREE NORTH SUBDIVISION the following
described courses:
Thence N 0'34'47" E a distance of 349.78 feet to a point;
Thence N 45'34'47" E a distance of 27.80 feet to a point marking the northwesterly
corner of said FORTY THREE NORTH SUBDIVISION;
Page 7 of 8
Page 64
Item#1.
Thence leaving said westerly boundary S 88'23'46" E along the northerly boundary of said
FORTY THREE NORTH SUBDIVISION a distance of 62.38 feet to a point on the extension of the
easterly boundary of that PARCEL as shown on record of Survey No. 10184, Instrument No.
2015-067809, found in said office of the Recorder,-
Thence N 0'35'00" E along said extension a distance of 62.05 feet to a point marking the
southeasterly corner of said PARCEL;
Thence continuing N 0°35'00" E along the easterly boundary of said PARCEL a distance of
652.57 feet to a point marking the southwesterly corner of that PARCEL as shown on Record of
Survey No. 2532, Instrument No. 9353397, found in said office of the Recorder;
Thence leaving said easterly boundary N 89'10'54" E along the southerly boundary of said
PARCEL as shown on Record of Survey No. 2532 a distance of 240.25 feet to a point marking the
southeasterly corner of said PARCEL as shown on Record of Survey No. 2532;
Thence N 0'36'25" E along the easterly boundary of said PARCEL as shown on Record of Survey
No. 2532 a distance of 260.06 feet to a point on the southerly right-of-way of E Fairview
Avenue;
Thence leaving said easterly boundary and continuing N 0'36'25" E along and extension of said
easterly boundary a distance of 49.99 feet to the POINT OF BEGINNING.
This parcel contains approximately 126.226 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 NAL SN SG
Civil Survey Consultants, Incorporated �! G
May 26, 2021
187
06- s, -2G 21 o �-
A Koa��kr
Page 8 of 8
Page 65
Item#1.
Attachment 3
Private Properties Which May Be Acquired by the Agency
1. The Agency has not identified any particular parcel for the construction of public
improvements or for private redevelopment. Properties which may be subject to
acquisition include parcels to:
a) assemble with adjacent parcels to facilitate development and/or redevelopment;
b) assemble with adjacent rights-of-way to improve configuration and enlarge
parcels for development and/or redevelopment;
c) reconfigure sites for development and possible extension of streets or pathways;
d) assemble for future transfer to qualified developers to facilitate the development
of mixed-use, residential (including affordable and/or workforce housing),
commercial, office and retail areas; or
e) assemble for the construction of certain public improvements, including but not
limited to streets, streetscapes, water and sewer improvements, environmental and
floodplain remediation/site preparation,public parking, community facilities,
parks,pedestrianibike paths and trails, recreation access points, and other public
facilities.
2. The Agency reserves the right to acquire any additional right-of-way or access routes near
or around existing or planned rights-of-way.
3. The Agency reserves the right to acquire property needed to provide adequately sized sites
for high priority projects for the development of public improvements (the exact location
of which has not been determined).
4. Other parcels may be acquired for the purpose of facilitating catalyst or demonstration
projects, constructing public parking, constructing new streets or pathways, enhancing
public spaces, or to implement other elements of the urban renewal plan strategy and/or
any master plan for the Project Area, including support for affordable and/or workforce
housing projects.
Page 66
Item#1.
Attachment 4
Map Depicting Expected Land Uses and Current Zoning Map
of the Project Area
Page 67
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Item#1.
Attachment 5
Economic Feasibility Study
Page 70
Item#1.
ATTACHMENT 5.1
(Option A)
Public Improvements within the Revenue Allocation Area
This attachment includes a projected list of proposed public works or improvements
within the Northern Gateway District Project Area (the "Project Area"). The proposed
improvements within the Project Area include improvements to streets, utilities, and
other public rights-of-way amenities as well as improvements to parks and open space,
transit improvements, fagade improvements, historic lighting, wayfinding,
environmental remediation, planning studies and public parking. Property acquisition to
support development goals is also contemplated.
The Northern Gateway District Improvement List set forth below identifies needed
investments to support private investment in capital facilities. Capital facilities generally
have long useful lives and significant costs. The overall project and the infrastructure to
support it are all consistent with the vision articulated in the City of Meridian
Comprehensive Plan, Destination: Downtown Plan, the future land use map and as
required in City development regulations. The cost estimates provided by the City are
based upon prices for similar construction in the area.
Estimated costs expected to be incurred in implementing the urban renewal plan are as
follows:
Northern Gateway District Improvement List
Open Area Development Costs
Utilities $3,000,000
Collector Roadways $1,000,000
Sub-total Open Area Development Costs $4,000,000
Redevelopment Project Area Costs
Street Improvements $11,000,000
Other Streetscapes $ 1,000,000
Utilities $ 5,200,000
Transit improvements $ 1,500,000
Fagade Improvements $ 1,000,000
Historic Lighting $ 750,000
Property Acquisition $ 3,000,000
Wayfinding/Signage $ 250,000
Parking $ 2 000 000
Public Plazas, Parks & Open Space $ 2,500 000
Environmental Remediation $ 1,500,000
Planning Studies $ 236,000
Page 71
Item#1.
Sub-total Redevelopment Area Costs $29,925,000
Grand Total $33,925,000
The projects and estimated costs have been derived from the City of Meridian,
the Meridian Development Corporation (MDC) and Vitruvian Planning, the
transportation consultant, in part, based upon similar works being carried out in the
broader community. The costs are estimated in 2021 dollars and are not inflated. Costs
will likely vary from the costs detailed here, as they will be subject to inflation and
further project refinement and timing. The cost estimates used in this analysis are
considered estimates for the purpose of financial planning.
The Project Area is estimated to generate $35,085,665 in tax increment revenue
between 2022 and 2041 in addition to the initial $75,000 loan from MDC to activate the
program. (Note: As the Idaho property tax system provides for taxes being paid in
arears, revenue allocation proceeds will be received in FY 2042. However, the final year
of income has not been considered in determining the economic feasibility of the
District.)
The total from both sources is estimated to be $35,160,665. There are presently
$33,925,000 of project costs identified in the Northern Gateway District Improvement
List. It is generally understood that projects will occur on a pay-as-you-go basis
recognizing there may be an opportunity for owner/developer advanced funding of
projects, which eligible costs would then be reimbursed through an Owner Participation
Agreement (OPA), or other similar agreement, from resources derived from the Project
Area.
Administrative costs over the 20-year life of the district are estimated at
$975,000 or approximately 2.6% of total estimated revenue. The initial inter-district
loan to support startup costs is assumed to be repaid at 5% interest for a total obligation
of$112,500. (Note: The amount of revenue allocation proceeds dedicated to the
administration of the District[$855,283 shown in the revenue model]is supplemented by
the Inter-district loan to produce the full amount over the life of the District.)
The total estimated expenditures equal $35,012,500, leaving a $148,165 positive
program balance of at the end of the 20-year term. See attached cash flow analysis for
detailed estimates.
The Urban Renewal Plan for the Northern Gateway District Project (the "Plan")
provides for the Plan and Project Area to extend through its maximum term of 20 years.
Protect Funding
Secure funding includes revenue allocation funds and is money MDC is highly likely to
receive. The funds may not be in MDC's possession at the beginning of the Plan period,
Page 72
Item#1.
but it is virtually certain that MDC will receive the funds. MDC may need to take specific
actions to generate the funding, but those actions are within its powers. Despite the
high probability of secure funding, no project can proceed until a specific, enforceable
funding plan is in place.
Potential funding is money that might be received by MDC. In every case MDC is eligible
for the funding, and the source of funding exists under current law. However, each
potential funding source requires one or more additional steps or decisions before MDC
can obtain the resources, and the ultimate decision is outside of MDC's independent
control. The City's capital contributions or Community Development Block Grant
funding are examples of potential funding. Thus, potential funding is not assumed in
determining financial feasibility.
Unfunded projects, or portions of projects lack secure or potential funding. At this time,
all projects are anticipated to be funded.
The amount of tax increment contributed to the project will may vary depending upon
the actual cost of infrastructure.
The Plan proposes certain public improvements that will facilitate development in the
Project Area. The overall investment package will be funded from a variety of financing
methods and sources. The primary method of financing MDC's obligation will be
through the use of tax increment revenue (i.e., incremental property taxes from the
revenue allocation area). This Plan anticipates that at least a portion of the tax
increment revenue will be used to reimburse an owner/developer through a negotiated
agreement for some or all of the eligible improvement costs. The issuance of bonds is
not anticipated in this analysis of financial feasibility.
Other sources of funding for project may include, but are not limited to:
• Local Improvement District (LID)
• Business Improvement District (BID)
• Development Impact Fees
• Franchise Fees
• Grants from federal, state, local, regional agencies and/or private entities
• Other bonds, notes and/or loans
• Improvements and/or payments by developers
The total project costs and the amount of tax increment are estimates. The estimated
project costs and revenues are based on MDC's present knowledge and expectations
supported by detailed information from property owners, City and MDC staff and MDC's
consultants based in part upon current construction projects in the broader community.
Page 73
Item#1.
Map of Proposed Northern Gateway District
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Summary of Projects
Based on the Northern Gateway District Improvement List set forth above, the
estimated total costs for the public improvements are $33,925,000.
Cost of Operations and Improvements by Year (2021-2042)
Year Secure Potential District Capital and Total Project
Funding Funding Operating Program Liabilities
(TIF Expenses Expenses
& And
MDC Loan) Repay Inter-
district Loan
2021 $75,000 $0 $0 $0
2022 $38,172 $0 $25,000 $25,000
2023 $79,830 $0 $50,000 $50,000 $100,000
2024 $125,301 $0 $50,000 $125,000 $175,000
2025 $333,941 $0 $50,000 $262,500 $312,500
2026 $475,588 $0 $50,000 $400,000 $450,000
2027 $598,223 $0 $50,000 $550,000 $600,000
2028 $912,403 $0 $50,000 $850,000 $900,000
Page 74
Item#1.
2029 $1,215,713 $0 $50,000 $1,000,000 $1,050,000
2030 $1,428,075 $0 $50,000 $1,500,000 $1,550,000
2031 $1,756,969 $0 $50,000 $1,700,000 $1,750,000
2032 $1,863,706 $0 $50,000 $1,800,000 $1,850,000
2033 $2,055,176 $0 $50,000 $2,000,000 $2,050,000
2034 $2,362,110 $0 $50,000 $2,300,000 $2,350,000
2035 $2,631,278 $0 $50,000 $2,600,000 $2,650,000
2036 $2,781,286 $0 $50,000 $2,700,000 $2,750,000
2037 $2,938,672 $0 $50,000 $2,900,000 $2,950,000
2038 $3,103,800 $0 $50,000 $3,100,000 $3,150,000
2039 $3,277,052 $0 $50,000 $3,200,000 $3,250,000
2040 $3,458,829 $0 $50,000 $3,400,000 $3,450,000
2041 $3,649,551 $0 $50,000 $3,600,000 $3,650,000
2042 $0 $0 0 $0
Total $35,160,665 $0 $975,000 $34,037,500 $35,012,500
Note: This analysis anticipates a positive fund balance of$148,165 the end of the
project.
Page 75
Item#1.
ATTACHMENT 5.2
Economic Feasibility Study
The Plan, as currently envisioned, is economically feasible because the proposed
development is sufficient to fully cover the anticipated cost of redevelopment program.
The economic feasibility of the Plan is based on the following factors:
• The amount of development anticipated in the Project Area
• The timing of the proposed taxable development
• The nature of the proposed development
• The amount of tax revenue to be generated by the proposed development
• The cost of public improvement projects
• If revenue equals or exceeds project costs, the Plan is economically feasible.
The following is a summary of the analysis and estimates of the factors used to
determine the economic feasibility of the Plan.
The Economic Feasibility Analysis
Summary:
Over the course of the Plan and the Northern Gateway District, $35,085,665 of Tax
Increment Revenue will be generated using the development scenarios proposed by the
City and MDC, in consultation with its consultants and property owners within the
Northern Gateway District. The Economic Feasibility Study assumes 10% of annual
revenue allocation area process, or TIF revenue, will be used for administration of the
Northern Gateway District with that amount capped at $50,000 per year, for a total of
$975,000 for administration costs over the 20-year lifespan of the District.
The attached spreadsheets entitled "Northern Gateway District Revenue Model" and
"Northern Gateway District Cash Flow Analysis" gives a more detailed outlook on the
revenues and expenses of the development scenario.
The following assumptions were made in the formulation of the Financial Feasibility
Analysis:
o Land Value Increase @ 8%/Year for 5 years, then 4%/year for the
balance of the term.
o Improvement Value Increase @ 10%/Year for 5 years, then 5%/year for
the balance of the term.
o Tax Rate is reduced 10% and held constant through the life of the Plan
o Total Cost of Improvements over the life of the project: $33,925,000 (City
and consultants' estimates)
Page 76
Item#1.
o Tax rate does not include levies excluded pursuant to Idaho Code 50-
2908, such as voter approved bonds/levies after 2007,judgment levies or
the School District Plant or supplemental levies excluded by law.
The Economic Feasibility Analysis shows that the project will generate adequate
funds within the Project Area to fund the necessary capital improvements.
Page 77
Ei]
DRAFT
Alternative A Moderate Forecast with 10%tax Rate Reduction - Includes County Property
Land Value Initial Imprv. Cum.New
(+8% Value(+10% Total Annual New Const Value+ Cum total Cumulative Increment Levy Tax Admin Funding for
Year annually for Annually for Assessed Const.Value Inflation @ Taxable Homeowner Taxable Value Value (H• Rate Increment Costs Capital
5 years then 5 years then Value on tax roll 10%for 5 Value s1 Base Value) (Flat) Yield (10%) Projects/
years then Exemption Debt Service
4%) 5%) 5%)
2021 $27,641,100 $ 46,297,100 $ 73,938,200 $ - $ - $ 73,938,200 $ 2,775,726 $ 71,162,474 $ - 0.0053
2022 $29,852,388 $ 50,926,810 $ 80,779,198 $ 500,000 $ 500,000 $ 81,279,198 $ 2,914,512 $ 78,364,686 $ 7,202,212 0.0053 $ 38,172 $ 3,817 $ 34,355
2023 $32,240,579 $ 56,019,491 $ 88,260,070 $ 500,000 $ 1,025,000 $ 89,285,070 $ 3,060,238 $ 86,224,832 $ 15,062,358 0.0053 $ 79,830 $ 7,983 $ 71,847
2024 $34,819,825 $ 61,621,440 $ 96,441,265 $ 500,000 $ 1,576,250 $ 98,017,515 $ 3,213,250 $ 94,804,266 $ 23,641,792 0.0053 $ 125,301 $ 12,530 $ 112,771
2025 $37,605,411 $ 67,783,584 $105,388,996 $ 30,500,000 $ 32,155,063 $137,544,058 $ 3,373,912 $ 134,170,146 $ 63,007,672 0.0053 $ 333,941 $ 33,394 $ 300,547
2026 $40,613,844 $ 74,561,943 $115,175,787 $ 15,500,000 $ 49,262,816 $164,438,602 $ 3,542,608 $ 160,895,995 $ 89,733,521 0.0053 $ 475,588 $ 47,559 $ 428,029
2027 $42,238,398 $ 78,290,040 $120,528,438 $ 15,500,000 $ 67,225,956 $187,754,394 $ 3,719,738 $ 184,034,656 $ 112,872,182 0.0053 $ 598,223 $ 50,000 $ 548,223
2028 $43,927,934 $ 82,204,542 $126,132,476 $ 50,500,000 $ 121,087,254 $247,219,730 $ 3,905,725 $ 243,314,005 $ 172,151,531 0.0053 $ 912,403 $ 50,000 $ 862,403
2029 $45,685,051 $ 86,314,769 $131,999,820 $ 45,500,000 $ 172,641,617 $304,641,437 $ 4,101,011 $ 300,540,426 $ 229,377,952 0.0053 $ 1,215,703 $ 50,000 $ 1,165,703
2030 $47,512,453 $ 90,630,507 $138,142,961 $ 25,500,000 $ 206,773,698 $344,916,658 $ 4,306,062 $ 340,610,596 $ 269,448,122 0.0053 $ 1,428,075 $ 50,000 $ 1,378,075
2031 $49,412,952 $ 95,162,033 $144,574,984 $ 45,500,000 $ 262,612,383 $407,187,367 $ 4,521,365 $ 402,666,002 $ 331,503,528 0.0053 $ 1,756,969 $ 50,000 $ 1,706,969
2032 $51,389,470 $ 99,920,134 $151,309,604 $ 500,000 $ 276,243,002 $427,552,606 $ 4,747,433 $ 422,805,172 $ 351,642,698 0.0053 $ 1,863,706 $ 50,000 $ 1,813,706
2033 $53,445,048 $104,916,141 $158,361,189 $ 15,500,000 $ 305,555,152 $463,916,341 $ 4,984,805 $ 458,931,536 $ 387,769,062 0.0053 $ 2,055,176 $ 50,000 $ 2,005,176
2034 $55,582,850 $110,161,948 $165,744,798 $ 35,500,000 $ 356,332,909 $522,077,708 $ 5,234,045 $ 516,843,662 $ 445,681,188 0.0053 $ 2,362,110 $ 50,000 $ 2,312,110
2035 $57,806,164 $115,670,045 $173,476,210 $ 25,500,000 $ 399,649,555 $573,125,765 $ 5,495,748 $ 567,630,017 $ 496,467,543 0.0053 $ 2,631,278 $ 50,000 $ 2,581,278
2036 $60,118,411 $121,453,548 $181,571,958 $ 500,000 $ 420,132,033 $601,703,991 $ 5,770,535 $ 595,933,456 $ 524,770,982 0.0053 $ 2,781,286 $ 50,000 $ 2,731,286
2037 $62,523,147 $127,526,225 $190,049,372 $ 500,000 $ 441,638,634 $631,688,007 $ 6,059,062 $ 625,628,945 $ 554,466,471 0.0053 $ 2,938,672 $ 50,000 $ 2,888,672
2038 $65,024,073 $133,902,536 $198,926,609 $ 500,000 $ 464,220,566 $663,147,175 $ 6,362,015 $ 656,785,161 $ 585,622,687 0.0053 $ 3,103,800 $ 50,000 $ 3,053,800
2039 $67,625,036 $140,597,663 $208,222,699 $ 500,000 $ 487,931,594 $696,154,294 $ 6,680,116 $ 689,474,178 $ 618,311,704 0.0053 $ 3,277,052 $ 50,000 $ 3,227,052
2040 $70,330,038 $147,627,546 $217,957,584 $ 500,000 $ 512,828,174 $730,785,758 $ 7,014,121 $ 723,771,636 $ 652,609,162 0.0053 $ 3,458,829 $ 50,000 $ 3,408,829
2041 $73,143,239 $155,008,923 $228,152,163 $ 500,000 $ 538,969,583 $767,121,745 $ 7,364,827 $ 759,756,918 $ 688,594,444 0.0053 $ 3,649,551 $ 50,000 $ 3,599,551
$310,000,000 $35,085,665 $855,283 $ 34,230,382
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DRAFT
Assumptions
Land Values inflate at 8%per year for 5 years( consistent with recent assessed value history)then at 4%for remainder of the Plan term
Improvement Values inflate at 10%per year for 5 years(consistent with recent assessed value history)then at 5%for remainder of the Plan ter
Tax rate reduced by 10%from 2020 certified rate then held constant for the remainder of the Plan term
Homeowners' Property Tax Exemption increases at 5% per year
Revenue Allocation proceeds flow to the District in the year after Certificate of Occupancy(C.O.)
Unincorporated area taxable investment estimated at: (uninflated cost estimate)
$30,000,000 with C.O. in 2024
$15,000,000 with C.O in 2026
$15,000,000 with C.O. in 2030
$15,000,000 with C.O. in 2031
$15,000,000 with C.O. in 2034
Potential Development Projects within District based upon staff discussions with Developers(Total Taxable Investment @ $210,000,000)
Value estimates based upon 2021 projects in Meridian
Project A-Phase 1: C.O. in 2025^ $15,000,000
Project A-Phase 2: C.O. in 2027^ $30,000,000
Project B: C.O. in 2027—$20,000,000
Project C- Phase 1: C.O. in 2028—$15,000,000
Project C- Phase 2: C.O. in 2030—$30,000,000
Project D- Phase 1: C.O. in 2028—$30,000,000
Project D- Phase 2: C.O. in 2029— 10,000,000
Project D- Phase 3: C.O. in 2033—$20,000,000
Project E: C.O. in 2032^ $15,000,000
Project F: C.O. in 2035 "25,000,000
Other properties within District will generate$500,000 in taxable investment annually
10%of annual revenue allocation yield will be paid to the Meridian Development Corporation for administrative costs
Balance of Revenue Allocation yield will be available for capital investment and program expenses
Notes
Note 1: 2021 Assessed Values Used in forecast.
Note 2: MDC will receive revenue allocation funds in 2042, but that amount has not been considerd in determining economic feasibility.
Note 3: The 17 acre parce at Meridian Road and Cherry is currently outside the city limits but is seeking annexation.
Note 4: It is anticiapted that the annexation willl be completed prior to plan adoption
Page 79
Item#1.
DRAFT Northern Gateway Urban Renewal District
Cash Flow Analysis N Current Tax Rate Reduced by 10% Then Remains Constant N Alternate A
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Beainnina Balance $ $ 75,000 $ 88,172 $ 68,002 $ 18,303 $ 39,744 $ 65,332 $ 63,555 $ 75,958 $ 241,661 $ 119,736
Source of Funds
Total Revenue Allocation $ $ 38,172 $ 79,830 $ 125,301 $ 333,941 $ 475,588 $ 598,223 $ 912,403 $ 1,215,703 $ 1,428,075 $ 1,756,969
MDC Inter-District Loan* $ 75,000 $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Funds Available $ 75,000 $ 113,172 $ 168,002 $ 193,303 $ 352,244 $ 515,332 $ 663,555 $ 975,958 $ 1,291,661 $ 1,669,736 $ 1,876,705
Use of Funds
District Operating Expenses $ - $ 25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
Repay Inter-District Loan @ 5% $ $ - $ 50,000 $ 50,000 $ 12,500 $ - $ - $ - $ - $ - $ -
Capital&Program Expenses $ - $ - $ 75,000 $ 250,000 $ 400,000 $ 550,000 $ 850,000 $ 1,000,000 $ 1,500,000 $ 1,700,000
Total Use of Funds $ $ 25,000 $ 100,000 $ 175,000 $ 312,500 $ 450,000 $ 600,000 $ 900,000 $ 1,050,000 $ 1,550,000 $ 1,750,000
Ending Balance $ 75,000 $ 88,172 $ 68,002 $ 18,303 $ 39,744 $ 65,332 $ 63,555 $ 75,958 $ 241,661 $ 119,736 $ 126,705
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 Total
Beginning Balance $ 126,705 $ 140,411 $ 145,587 $ 157,697 $ 138,975 $ 170,261 $ 158,933 $ 112,733 $ 139,785 $ 148,614
Source of Funds
Total Revenue Allocation $ 1,863,706 $ 2,055,176 $ 2,362,110 $ 2,631,278 $ 2,781,286 $ 2,938,672 $ 3,103,800 $ 3,277,052 $ 3,458,829 $ 3,649,551 $ 35,085,665
MDC Inter-District Loan $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 75,000
Total Funds Available $ 1,990,411 $ 2,195,587 $ 2,507,697 $ 2,788,975 $ 2,920,261 $ 3,108,933 $ 3,262,733 $ 3,389,785 $ 3,598,614 $ 3,798,165 $ 35,160,665
Use of Funds
District Operating Expenses $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 975,000
Repay Inter-district Loan @ 5% $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 112,500
Capital&Program Expenses $ 1,800,000 $ 2,000,000 $ 2,300,000 $ 2,600,000 $ 2,700,000 $ 2,900,000 $ 3,100,000 $ 3,200,000 $ 3,400,000 $ 3,600,000 $ 33,925,000
Total Use of Funds $ 1,850,000 $ 2,050,000 $ 2,350,000 $ 2,650,000 $ 2,750,000 $ 2,950,000 $ 3,150,000 $ 3,250,000 $ 3,450,000 $ 3,650,000 $ 35,012,500
Ending Balance $ 140,411 $ 145,587 $ 157,697 $ 138,975 $ 170,261 $ 158,933 $ 112,733 $ 139,785 $ 148,614 $ 148,165
Assumi2tions
Initial District Start-up costs supported by MDC Inter-district Loan of$75,000 to be repaid at 5%Interest
10%of annual TIF yield dedicated to Meridian Development Corporation for District operating Expenses,capped at$50,000,Yr.
Land Values will increase at an average of 8010 annually for 5 years then at 4010 over the remaining life of the District
Improvement Values will increase at a rate of 10%for 5 years then at 5%over the remaining life of the District
Includes $90,000,000 in taxable investment on the property currently located in unincorporated Ada County but will be annexed to the City of Meridian prior to development
Page 80
Item#1.
Attachment 6
Agricultural Operation Consent
4837-9029-4001,v.5
Page 81
Item#1.
AGRICULTURAL OPERATION CONSENT FORM
COMES NOW [Name], [Title] of[Entity Name], an Idaho [Type of Entity]
(" "), and states that [Property Owner- Individual or Entity] owns that certain
property generally described as Parcel Identification Number in the real
property records of Ada County, Idaho,and more particularly described on Exhibit A attached
hereto and incorporated herein by reference (the "Property"), and hereby certifies:
(1) that the Property has been used, within the last three (3) years, as an
agricultural operation; and
(2) that the undersigned has reviewed the materials provided in Exhibit B, and
has had an opportunity to review the urban renewal eligibility report, dated May 2021, entitled
Northern Gateway Urban Renewal District Eligibility Report, prepared by Kushlan I Associates
and as attached hereto as Exhibit C.
Further, [Name], [Title] of[Entity Name], an Idaho [Type of Entity], hereby provides his
consent and approval that the subject Property may be included within a proposed urban renewal
area and may be deemed appropriate for inclusion within an urban renewal project area as
defined by the Idaho Urban Renewal Law of 1965, Chapter 20, Title 50, Idaho Code, as
amended, and the Local Economic Development Act, Chapter 29, Title 50, Idaho Code, as
amended, as the property possesses certain characteristics of eligibility.
DATED this day of , 2021.
[Entity Name]
Name:
Title:
STATE OF IDAHO )
ss:
County of )
On this day of , 2021, before me, a Notary Public for the state of
Idaho, personally appeared , known or identified to me to be the
of the that executed the instrument or the person
who executed the instrument on behalf of said and acknowledged to me
that such executed the same.
Notary Public
My Commission Expires on
Page 82
Item#1.
EXHIBIT A
PARCEL NUMBER
ADDRESS
DESCRIPTION
Page 83
Item#1.
EXHIBIT B
EXCERPTS OF STATUTES
IDAHO CODE §§ 50-2018(8)AND (9)
(8) "Deteriorated area" shall mean an area in which there is a
predominance of buildings or improvements, whether residential or
nonresidential, which by reason of dilapidation, deterioration, age
or obsolescence, inadequate provision for ventilation, light, air,
sanitation, or open spaces, high density of population and
overcrowding, or the existence of conditions which endanger life or
property by fire and other causes, or any combination of such factors
is conducive to ill health, transmission of disease, infant mortality,
juvenile delinquency, or crime, and is detrimental to the public
health, safety, morals or welfare. Provided however, this definition
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 or to any forest land as defined in section 63-
1701 (4) , Idaho Code, absent the consent of the forest landowner, as
defined in section 63-1701 (5) , Idaho Code, except for an agricultural
operation or forest land that has not been used for three (3)
consecutive years .
(9) "Deteriorating area" shall mean an area which by reason of
the presence of a substantial number of deteriorated or deteriorating
structures, predominance of defective or inadequate street layout,
faulty lot layout in relation to size, adequacy, accessibility or
usefulness, insanitary or unsafe conditions, deterioration of site or
other improvements, diversity of ownership, tax or special assessment
delinquency exceeding the fair value of the land, defective or unusual
conditions of title, or the existence of conditions which endanger
life or property by fire and other causes, or any combination of such
factors, substantially impairs or arrests the sound growth of a
municipality, retards the provision of housing accommodations or
constitutes an economic or social liability and is a menace to the
public health, safety, morals or welfare in its present condition and
use; provided, that if such deteriorating area consists of open land
the conditions contained in the proviso in section 50-2008 (d) , Idaho
Code, shall apply; and provided further, that any disaster area
referred to in section 50-2008 (g) , Idaho Code, shall constitute a
deteriorating area. Provided however, this definition 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
or to any forest land as defined in section 63-1701 (4) , Idaho Code,
absent the consent of the forest landowner, as defined in section 63-
1701 (5) , Idaho Code, except for an agricultural operation or forest
land that has not been used for three (3) consecutive years .
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Item#1.
IDAHO CODE § 50-2008
50-2008 . PREPARATION AND APPROVAL OF PLAN FOR URBAN RENEWAL
PROJECT. (a) An urban renewal project for an urban renewal area shall
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 a combination thereof and designated such area
as appropriate for an urban renewal project.
(b) An urban renewal agency may itself prepare or cause to be
prepared an urban renewal plan, or any person or agency, public or
private, may submit such a plan to an urban renewal agency. Prior to
its approval of an urban renewal project, the local governing body
shall submit such plan to the planning commission of the municipality,
if any, for review and recommendations as to its conformity with the
general plan for the development of the municipality as a whole. The
planning commission shall submit its written recommendations with
respect to the proposed urban renewal plan to the local governing body
within sixty (60) days after receipt of the plan for review. Upon
receipt of the recommendations of the planning commission, or if no
recommendations are received within said sixty (60) days, then without
such recommendations, the local governing body may proceed with the
hearing on the proposed urban renewal project prescribed by subsection
(c) hereof.
(c) The local governing body shall hold a public hearing on an
urban renewal project, after public notice thereof by publication in
a newspaper having a general circulation in the area of operation of
the municipality. The notice shall describe the time, date, place and
purpose of the hearing, shall generally identify the urban renewal
area covered by the plan, and shall outline the general scope of the
urban renewal project under consideration.
(d) Following such hearing, the local governing body may approve
an urban renewal project and the plan therefor if it finds that (1) a
feasible method exists for the location of families who will be
displaced from the urban renewal area in decent, safe and sanitary
dwelling accommodations within their means and without undue hardship
to such families; (2) the urban renewal plan conforms to the general
plan of the municipality as a whole; (3) the urban renewal plan gives
due consideration to the provision of adequate park and recreational
areas and facilities that may be desirable for neighborhood
improvement, with special consideration for the health, safety and
welfare of children residing in the general vicinity of the site
covered by the plan; and (4) 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 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
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Item#1.
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.
(e) An urban renewal plan may be modified at any time: Provided
that if modified after the lease or sale by the urban renewal agency
of real property in the urban renewal project area, such modification
may be conditioned upon such approval of the owner, lessee or successor
in interest as the urban renewal agency may deem advisable and in any
event shall be subject to such rights at law or in equity as a lessee
or purchaser, or his successor or successors in interest, may be
entitled to assert.
(f) Upon the approval by the local governing body of an urban
renewal plan or of any modification thereof, such plan or modification
shall be deemed to be in full force and effect for the respective
urban renewal area, and the urban renewal agency may then cause such
plan or modification to be carried out in accordance with its terms .
(g) Notwithstanding any other provisions of this act, where the
local governing body certifies that an area is in need of redevelopment
or rehabilitation as a result of a flood, fire, hurricane, earthquake,
storm, or other catastrophe respecting which the governor of the state
has certified the need for disaster assistance under 42 U. S.C. section
5121, or other federal law, the local governing body may approve an
urban renewal plan and an urban renewal project with respect to such
area without regard to the provisions of subsection (d) of this section
and the provisions of this section requiring a general plan for the
municipality and a public hearing on the urban renewal project.
(h) Any urban renewal plan containing a revenue allocation
financing provision shall include the information set forth in
section 50-2905, Idaho Code.
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IDAHO CODE §50-2903(8)
(8) "Deteriorated area" means :
(a) Any area, including a slum area, in which there is a predominance
of buildings or improvements, whether residential or nonresidential,
which by reason of dilapidation, deterioration, age or obsolescence,
inadequate provision for ventilation, light, air, sanitation, or open
spaces, high density of population and overcrowding, or the existence
of conditions which endanger life or property by fire and other causes,
or any combination of such factors, is conducive to ill health,
transmission of disease, infant mortality, juvenile delinquency, or
crime, and is detrimental to the public health, safety, morals or
welfare.
(b) Any area which by reason of the presence of a substantial number
of deteriorated or deteriorating structures, predominance of defective
or inadequate street layout, faulty lot layout in relation to size,
adequacy, accessibility or usefulness, insanitary or unsafe
conditions, deterioration of site or other improvements, diversity of
ownership, tax or special assessment delinquency exceeding the fair
value of the land, defective or unusual conditions of title, or the
existence of conditions which endanger life or property by fire and
other causes, or any combination of such factors, results in economic
underdevelopment of the area, substantially impairs or arrests the
sound growth of a municipality, retards the provision of housing
accommodations or constitutes an economic or social liability and is
a menace to the public health, safety, morals or welfare in its present
condition and use.
(c) Any area which is predominately 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 50-2008 (d) , Idaho Code, shall
apply to open areas .
(d) Any area which the local governing body certifies is in need of
redevelopment or rehabilitation as a result of a flood, storm,
earthquake, or other natural disaster or catastrophe respecting which
the governor of the state has certified the need for disaster
assistance under any federal law.
(e) Any area which by reason of its proximity to the border of an
adjacent state is competitively disadvantaged in its ability to attract
private investment, business or commercial development which would
promote the purposes of this chapter.
(f) "Deteriorated area" does not mean not developed beyond
agricultural, or any agricultural operation as defined in section 22-
4502 (1) , Idaho Code, or any forest land as defined in section 63-
1701 (4) , Idaho Code, unless the owner of the agricultural operation
or the forest landowner of the forest land gives written consent to
be included in the deteriorated area, except for an agricultural
operation or forest land that has not been used for three (3)
consecutive years .
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EXHIBIT C
ELIGIBILITY REPORT
4837-6502-2952,v. 1
Page 88
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1 �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#1.
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
Map of the Downtown District (excluding shaded area)
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Item#1.
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Map of Ten Mile Road District
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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#1.
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#1.
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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i
I
I
cm
4 ,[
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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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 L50-2903(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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Item#1.
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
� LegeM
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1
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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Item#1.
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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Item#1.
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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Item#1.
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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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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Item#1.
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 50-29O3(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-
29O3(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#1.
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#1.
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 $1,037,583,780 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#1.
ATTACHMENT i
(Parcel Information)
4852-0604-1321,v. 6
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Item#1.
Parcel Number Site Address
Lot size Lot Size Sq Zoning Total Taxable Total Land Assessed Total Improvement Homeowners Net Taxable
Acres Feet Value Assessed Value Exemption Value
R6129020781 35 East Fairview Avenue 1.78 77406 Com Bus $ 967,600 $ 1,714,000 $ 2,681,600 $ $ 2,681,600
R6129020742 1615 N Main St 0.36 15812 Com Misc $ 189,700 $ 126,300 $ 316,000 $ $ 316,000
R6129020725 1603 N Main 0.68 29708 Com Bus $ 356,500 $ 44,400 $ 400,900 $ $ 400,900
R6129020670 1635 N Main 0.59 25700 Com Misc $ 308,400 $ 581,100 $ 889,500 $ $ 889,500
R6129020650 1519 N Main Street 0.72 31363 Com Misc $ 282,300 $ 111,400 $ 393,700 $ $ 393,700
R6129020611 1508 N Meridian RD 0.53 23087 Com Bus $ 127,300 $ 156,100 $ 283,400 $ $ 283,400
R6129020520 1434 N Meridian Rd 0.26 11238 Com Misc $ 112,400 $ 172,800 $ 285,200 $ $ 285,200
R6129020540 1428 N Meridian Rd 0.2 8712 Com Bus $ 91,400 $ 121,200 $ 212,600 $ $ 212,600
R6129020490 1422 N Meridian Rd 0.2 8712 Com Bus $ 91,400 $ 173,200 $ 264,600 $ $ 264,600
R6129020500 1423 N Main St 0.31 13504 Com Misc $ 121,500 $ 187,300 $ 308,800 $ $ 308,800
R6129020510 1414 N Meridian Rd 0.14 6184 Com Bus $ 79,500 $ 135,200 $ 214,700 $ $ 214,700
R6129020532 1402 N Meridian Rd 0.28 12284 Com Bus $ 96,400 $ 132,700 $ 229,100 $ $ 229,100
R6129020560 1332 N Meridian Rd 0.64 28096 Com Bus $ 210,700 $ - $ 210,700 $ $ 210,700
R6129020360 1324 N Meridian Rd 0.4 17424 Com Bus $ 115,100 $ 244,600 $ 359,700 $ 100,000 $ 259,700
R6129020330 1308 N Meridian Rd 0.22 9583 Com Misc $ 105,400 $ 5,100 $ 110,500 $ - $ 110,500
R6129020311 N Meridian Rd 0.07 2919 Com Misc $ 32,100 $ - $ 32,100 $ - $ 32,100
R6129020300 1304 N Meridian Rd 0.2 8712 Com Bus $ 91,400 $ 140,500 $ 231,900 $ 100,000 $ 131,900
R6129020295 1234 N Meridian Rd 0.68 29839 Com Bus $ 145,500 $ 118,700 $ 264,200 $ - $ 264,200
R8193140010 1220 N Meridian RD 0.39 16945 Com Misc $ 152,500 $ 332,400 $ 484,900 $ - $ 484,900
R6129020167 16 E.Washington Ave 0.23 9975 R-15 $ 86,300 $ 165,000 $ 251,300 $ 100,000 $ 151,300
R6129020180 26 E Washington Ave 0.24 10454 R-15 $ 91,400 $ 108,600 $ 200,000 $ 100,000 $ 100,000
R6129020195 38 E Washington Ave 0.16 6970 R-15 $ 82,900 $ 147,700 $ 230,600 $ 82,276 $ 148,324
R6129020205 46 E Washington 0.16 6970 R-15 $ 82,900 $ 8,900 $ 91,800 $ - $ 91,800
R6129020215 1203 N Main Street 0.4 17424 Com Misc $ 191,700 $ 82,600 $ 274,300 $ $ 274,300
R8193140020 1225 N Main Street 0.44 19123 Old Town $ 115,100 $ 215,000 $ 330,100 $ $ 330,100
R6129020260 1233 N Main Street 0.22 9583 Com Misc $ 95,800 $ 210,100 $ 305,900 $ $ 305,900
R6129020320 1303 N Main Street 0.29 12632 Com Misc $ 126,300 $ 64,200 $ 190,500 $ $ 190,500
R6129020315 1311 N Main Street 0.54 23653 Com Misc $ 236,500 $ 164,200 $ 400,700 $ $ 400,700
R6129020341 1323 N Main Street 0.64 27878 Com Misc $ 278,600 $ 231,400 $ 510,000 $ 100,000 $ 410,000
R6129020370 1335 N Main Street 0.14 6098 Com Misc $ 61,000 $ 167,600 $ 228,600 $ - $ 228,600
R6129020385 1403 Nmain Street 0.52 22521 Com Misc $ 225,200 $ 100,000 $ 325,200 $ $ 325,200
R6129020431 1409 N Main Street 0.23 10019 Com Misc $ 100,200 $ 101,500 $ 201,700 $ $ 201,700
R6129020450 N Main Street 0.27 11761 Com Misc $ 105,800 $ 9,000 $ 114,800 $ $ 114,800
R6129020420 N Main Street 0.3 13068 Com Misc $ 130,700 $ - $ 130,700 $ $ 130,700
R6129020400 1423 N Main St 0.32 13939 Com Misc $ 139,400 $ 227,400 $ 366,800 $ $ 366,800
R6129020570 1515 N Main St 0.52 22651 Com Misc $ 226,500 $ 143,400 $ 369,900 $ $ 369,900
S1107223270 1682 N Main St 0.92 40075 Com Misc $ 521,000 $ 493,200 $ 1,014,200 $ $ 1,014,200
S1107223280 1626 N Main St 0.89 38768 Com Misc $ 310,100 $ 981,000 $ 1,291,100 $ $ 1,291,100
S1107223268 207 E Fairview Ave 1.1 48134 Com Misc $ 575,600 $ 477,600 $ 1,053,200 $ $ 1,053,200
S1107223200 1600 N Main St 2.72 118483 Com Bus $ 947,900 $ 2,836,200 $ 3,784,100 $ $ 3,784,100
S1107223350 1518 N Main St 0.62 27007 Com Misc $ 270,100 $ 640,200 $ 910,300 $ $ 910,300
S1107223370 1510 N Main St 0.28 12197 Com Misc $ 122,000 $ 216,800 $ 338,800 $ $ 338,800
S1107223380 1504 N Main St 0.25 10890 Com Misc $ 108,900 $ 79,700 $ 188,600 $ $ 188,600
S1107223400 1420 N Main St 0.35 15246 Com Misc $ 152,500 $ 103,300 $ 255,800 $ $ 255,800
S1107223420 1412 N Main St 0.35 15246 Com Misc $ 152,500 $ 189,600 $ 342,100 $ $ 342,100
S1107223435 1406 N Main St 0.72 31363 Com Bus $ 282,300 $ 1,135,600 $ 1,417,900 $ $ 1,417,900
S1107223480 1404 N Main St 0.35 15246 Com Bus $ 152,500 $ 839,100 $ 991,600 $ $ 991,600
S1107223500 1332 N Main St 0.35 15246 Com Bus $ 152,500 $ 147,400 $ 299,900 $ $ 299,900
S1107223510 1326 N Main St 0.35 15246 Com Bus $ 152,500 $ 145,700 $ 298,200 $ $ 298,200
S1107223520 1320 N Main St 0.35 15246 Com Bus $ 97,100 $ 81,800 $ 178,900 $ $ 178,900
S1107223530 1310 N Main St 0.35 15246 Com Bus $ 152,500 $ 136,400 $ 288,900 $ $ 288,900
S1107223599 1302 N Main St 0.51 22216 R-15 $ 222,200 $ 320,800 $ 543,000 $ $ 543,000
S1107223160 1435 NE 2nd 1/2 Street 0.32 13939 Old Town $ 97,600 $ - $ 97,600 $ $ 97,600
S1107223150 1431 NE 2nd 1/2 Street 0.32 13939 Old Town $ 97,100 $ $ 97,100 $ $ 97,100
S1107223125 1421 NE 2nd 1/2 Street 0.18 7841 Old Town $ 81,500 $ $ 81,500 $ $ 81,500
S1107223100 1421 NE 2nd 1/2 Street 0.48 21127 Old Town $ 147,900 $ $ 147,900 $ $ 147,900
S1107223090 1411 NE 2nd 1/2 Street 0.06 2744 Old Town $ 19,200 $ $ 19,200 $ $ 19,200
S1107223085 1411 NE 2nd 1/2 Street 0.16 7187 Old Town $ 50,300 $ $ 50,300 $ $ 50,300
S1107223082 1403 NE 2nd 1/2 Street 0.15 6534 Old Town $ 45,700 $ $ 45,700 $ $ 45,700
S1107223080 1403 NE 2nd 1/2 Street 0.24 10280 Old Town $ 72,000 $ $ 72,000 $ $ 72,000
S1107223070 1349 NE 2nd 1/2 Street 0.49 21344 Old Town $ 149,400 $ $ 149,400 $ $ 149,400
S1107223065 NE 2nd 1/2 Street 0.35 15290 Old Town $ 107,000 $ $ 107,000 $ $ 107,000
S1107223055 1331 NE 2nd 1/2 Street 0.25 10890 R-15 $ 92,600 $ $ 92,600 $ $ 92,600
S1107223040 1323 NE 2nd 1/2 Street 0.33 14375 R-15 $ 122,200 $ $ 122,200 $ $ 122,200
S1107223030 1313 NE 2nd 1/2 Street 0.33 14375 R-15 $ 97,100 $ 94,400 $ 191,500 $ $ 191,500
S1107223020 1305 NE 2nd 1/2 Street 0.33 14375 R-15 $ 97,100 $ 74,700 $ 171,800 $ $ 171,800
S1107223010 1237 NE 2nd 1/2 Street 0.33 14375 R-15 $ 97,100 $ - $ 97,100 $ $ 97,100
R7745460030 1225 NE 2nd 1/2 Street 1.35 58719 L-0 $ - $ $ - $ $ -
R7745460040 1175 NE 2nd 1/2 Street 0.22 9409 L-0 $ $ $ $ $
R7745460020 1153 NE 2nd 1/2 Street 0.53 23087 R-15 $ $ $ $ $
R7745460010 200 E Carlton Ave 1.32 57281 L-0 $ $ $ $ $
R6129010210 211 E Carlton Ave 0.32 13939 Old Town $ $ $ $ $
R1578000275 211 E Carlton Ave 0.14 6098 Old Town $ $ $ $ $
R1578000280 1029 NE Third St. 0.28 12197 Old Town $ 96,400 $ 259,900 $ 356,300 $ 100,000 $ 256,3 Page 109
R1578000262 1013 NE Third Ave 0.15 Old Town $ 79,500 $ 183,900 $ 263,400 $ $ 263,4
R1578000264 234 E State Street 0.12 Old Town $ 71,100 $ 171,900 $ 243,000 $ $ 243,000
Item#1.
Parcel Number Site Address
Lot size Lot Size Sq Zoning Total Taxable Total Land Assessed Total Improvement Homeowners Net Taxable
Acres Feet Value Assessed Value Exemption Value
R1578000270 226 E State Ave 0.14 6098 Old Town $ 79,500 $ 153,300 $ 232,800 $ 100,000 $ 132,800
R6129010205 216 E State Ave 0.08 3485 Old Town $ 71,100 $ 77,100 $ 148,200 $ - $ 148,200
R6129010195 206 E State Ave 0.16 6970 old Town $ 82,900 $ 112,200 $ 195,100 $ $ 195,100
R6129010190 1014 NE 2nd St 0.08 3485 Old Town $ 55,000 $ 109,700 $ 164,700 $ $ 164,700
R6129010170 211 E State Ave 0.32 13939 1 Old Town $ 102,800 $ 50,100 $ 152,900 $ $ 152,900
R1578000242 221 E State Ave 0.19 8276 Old Town $ 86,300 $ 169,500 $ 255,800 $ 100,000 $ 155,800
R1578000246 E State St 0.16 6970 Old Town $ 82,900 $ 5,000 $ 87,900 $ - $ 87,900
R1578000251 237 E State Ave 0.18 7841 Old Town $ - $ - $ - $ - $ -
R1578000220 238 E Pine Ave 0.14 6098 Old Town $ 75,300 $ 134,500 $ 209,800 $ 100,000 $ 109,800
R1578000225 232 E Pine Ave 0.1 4356 Old Town $ 71,100 $ 94,400 $ 165,500 $ - $ 165,500
R1578000230 226 E Pine Ave 0.1 4356 Old Town $ 71,100 $ 127,500 $ 198,600 $ 100,000 $ 98,600
R1578000235 220 E Pine Ave 0.11 4792 Old Town $ 75,300 $ 104,300 $ 179,600 $ - $ 179,600
R6129000160 214 E Pine Ave 0.22 9365 old Town $ 91,400 $ 133,600 $ 225,000 $ $ 225,000
R6129000150 914 NE 2nd St 0.16 6970 Old Town $ 79,500 $ 121,500 $ 201,000 $ $ 201,000
R5672000940 211 E Pine Ave 0.42 18208 old Town $ 163,900 $ 538,600 $ 702,500 $ $ 702,500
R7596000010 235 E Pine Ave 0.53 23217 Old Town $ - $ - $ - $ $ -
R7596000040 240 E Idaho Ave 0.47 20473 old Town $ $ $ $ $
R5672000915 800 NE 2nd St 0.32 13939 Old Town $ $ $ $ $
S1107244450 1108 NE 2nd 1/2 St 3.55 154725 R-15 $ $ $ $ $ -
S1107244600 1210 NE 2nd 1/2St 0.39 16988 R-15 $ 97,100 $ 50,400 $ 147,500 $ $ 147,500
S1107244572 272 E Washington Ave 0.23 9975 R-15 $ 86,300 $ 91,500 $ 177,800 $ 100,000 $ 77,800
S1107244550 302 E Washington Ave 0.36 15812 R-15 $ 102,800 $ 78,200 $ 181,000 $ - $ 181,000
S1107244500 312 E Washington Ave 0.48 21083 R-15 $ 115,100 $ 81,900 $ 197,000 $ 100,000 $ 97,000
S1107244425 358 E Washington Ave 0.22 9583 R-15 $ 91,400 $ 62,500 $ 153,900 $ 93,450 $ 60,450
S1107244410 372 E Washington Ave 0.44 19166 R-15 $ 115,100 $ 218,900 $ 334,000 $ - $ 334,000
S1107244400 1233 NE 4th St 1.08 47045 R-15 $ 235,200 $ 981,300 $ 1,216,500 $ $ 1,216,500
S1107244650 1226 NE 2nd 1/2 St 0.36 15551 Old Town $ 77,800 $ 277,000 $ 354,800 $ $ 354,800
R8533900020 123 NE 2nd 1/2 St 0.17 7536 R-15 $ 82,900 $ 219,200 $ 302,100 $ $ 302,100
R5518460010 NE 2nd 1/2 St 0.5 21562 R-15 $ - $ - $ - $ $ -
R5518460030 1260 NE 2nd 1/2 St 0 0 R-15 $ $ 119,900 $ 119,900 $ $ 119,900
R5518460050 1266 NE 2nd 1/2 St 0 0 R-15 $ $ 113,700 $ 113,700 $ $ 113,700
R5518460060 1278 NE 2nd 1/2 St 0 0 R-15 $ $ 121,200 $ 121,200 $ $ 121,200
R5518460080 1296 NE 2nd 1/2 St 0 0 R-15 $ $ 115,000 $ 115,000 $ $ 115,000
R5739800100 1304 NE 2nd 1/2 St 0.14 6098 R-15 $ 75,100 $ 109,500 $ 184,600 $ $ 184,600
R5739800010 1312 NE 2nd 1/2 St 0.25 10860 R-15 $ 86,300 $ 191,700 $ 278,000 $ $ 278,000
R5739800050 NE 3rd St 1.72 74923 R-15 $ 206,000 $ - $ 206,000 $ $ 206,000
R6492000005 1335 NE 4th St 0.31 13373 R-8 $ 97,100 $ - $ 97,100 $ $ 97,100
R6492000015 1330 NE 3rd St 0.14 6142 R-8 $ 75,100 $ 154,300 $ 229,400 $ $ 229,400
R6492000045 1331 NE 3rd St 0.14 6142 R-8 $ 75,100 $ 154,300 $ 229,400 $ $ 229,400
R6492000055 1328 NE 2nd 1/2 St 0.35 15246 R-8 $ 97,100 $ 161,900 $ 259,000 $ 100,000 $ 159,000
R6492000065 1334 NE 2nd 1/2 St 0.14 6098 R-8 $ 75,100 $ 154,300 $ 229,400 $ - $ 229,400
R6492000075 206 E Bad ley Ave 0.18 7841 R-8 $ 81,500 $ 146,400 $ 227,900 $ $ 227,900
R6492000085 1335 NE 3rd St 0.14 6098 R-8 $ 75,100 $ 154,300 $ 229,400 $ $ 229,400
R6492000025 1336 NE 3rd St 0.14 6098 R-8 $ 75,100 $ 154,300 $ 229,400 $ $ 229,400
R6492000036 371 E Badley Ave 0.16 7144 R-8 $ 78,300 $ 137,600 $ 215,900 $ 100,000 $ 115,900
R6492000037 399 E Bad ley Ave 0.16 7144 R-8 $ 78,300 $ 156,300 $ 234,600 $ 100,000 $ 134,600
R1366010075 1410 NE 2nd 1/2 St 0.26 11326 R-8 $ 91,100 $ 131,400 $ 222,500 $ 100,000 $ 122,500
R1366010080 276 E Bad ley Ave 0.26 11326 R-8 $ 91,100 $ 194,100 $ 285,200 $ 100,000 $ 185,200
R1366010070 1420 NE 2nd 1/2 St 0.38 16727 R-8 $ 103,100 $ 173,500 $ 276,600 $ 100,000 $ 176,600
R1366010062 1432 NE 2nd 1/2 St 0.15 6534 R-8 $ 75,100 $ 130,300 $ 205,400 $ - $ 205,400
R1366010060 301 E Gruber Ave 0.11 4748 R-8 $ 67,100 $ 105,400 $ 172,500 $ - $ 172,500
R1366010065 303 E Gruber Ave 0.4 17293 R-8 $ 103,100 $ 169,400 $ 272,500 $ 100,000 $ 172,500
S1107212707 403 E Fairview Ave 7.64 332886 R-8 $ 1,952,900 $ 2,191,500 $ 4,144,400 $ - $ 4,144,400
R1366010020 302 E Gruber Ave 2.29 99752 R-40 $ 498,800 $ 3,829,900 $ 4,328,700 $ - $ 4,328,700
R1366010013 1620 NE 2nd 1/2 St 0.25 11021 R-8 $ 76,100 $ 108,900 $ 185,000 $ 100,000 $ 85,000
R1366010015 225 E Fairview Ave 0.3 12937 R-8 $ 129,400 $ 232,100 $ 361,500 $ - $ 361,500
R1366010005 227 E Fairview Ave 0.21 9191 CG $ 110,300 $ 130,900 $ 241,200 $ $ 241,200
S1107212556 519 E Fairview Ave 1.44 62639 C-G $ 626,400 $ 1,001,200 $ 1,627,600 $ $ 1,627,600
S1106346911 412 E Fairview Ave 0.46 20038 C-G $ 152,500 $ 149,400 $ 301,900 $ $ 301,900
S1106346900 400 E Fairview Ave 0.63 27443 C-G $ 237,300 $ 126,100 $ 363,400 $ $ 363,400
S1106346834 360 E Fairview Ave 0.47 20473 C-G $ 143,800 $ 439,400 $ 583,200 $ $ 583,200
S1106346832 300 E Fairview Ave 1.24 54014 C-G $ 480,900 $ 836,700 $ 1,317,600 $ $ 1,317,600
S1106346750 220 E Fairview Ave 0.75 32670 C-G $ 257,900 $ 176,500 $ 434,400 $ $ 434,400
S1106346540 216 E Fairview Ave 0.8 34848 C-G $ 290,100 $ 618,200 $ 908,300 $ $ 908,300
S1106336530 210 E Fairview Ave 1.75 76230 C-G $ 686,100 $ 1,541,100 $ 2,227,200 $ $ 2,227,200
S1106336410 200 E Fairview Ave 0.38 16553 C-G $ 165,500 $ 213,300 $ 378,800 $ $ 378,800
S1106336401 132 E Fairview Ave 1.46 63554 C-G $ 572,000 $ 484,700 $ 1,056,700 $ $ 1,056,700
R8956180200 34 E Fairview Ave 4.52 196717 C-G $ 1,672,100 $ 5,560,000 $ 7,232,100 $ $ 7,232,100
R8956180100 14 E Fairview Ave 0.48 20952 C-G $ 314,300 $ - $ 314,300 $ $ 314,300
S1106336370 20 E Fairview Ave 3.85 167837 C-G $ 1,426,600 $ 2,518,900 $ 3,945,500 $ $ 3,945,500
S1106336197 1830 N Meridian Rd 1 43560 C-G $ 290,800 $ 891,000 $ 1,181,800 $ $ 1,181,800
S1106336086 55 E Carmel Dr 1.11 48352 C-G $ - $ - $ - $ $ -
S1106336200 255 E Carmel Dr 4 174240 C-G $ 609,800 $ $ 609,800 1 $ $ 609,8
S1201449707 104 W Cherry Ln 17.64 768573 Ada RUT $ 27,500 $ $ 27,500 1 $ $ 27,5 Page 110
103.34 $ 26,665,100 $ 44,343,600 $ 71,008,700 1 $ 2,175,726 $ 68,832,9
7/tem 77
E IDIAN
'aAHO
AGENDA ITEM
ITEM TOPIC: Draft First Amendment to the Urban Renewal Plan for the Union District Urban
Renewal Project
Page 111
Item#2.
C�VE Nty
® � MERIDIAN
�� development corp.
,' ;: REVIVE.RENEW•REDEFINE
Memo to Meridian City Council and
Meridian Development Corporation Board of Commissioners
Request to Include Topic on Joint City Council - Meridian Development Corporation Agenda
From: Cameron Arial, Community Development Meeting Date: August 24, 2021
Director, City of Meridian
Ashley Squyres,Administrator, Meridian
Development Corporation
Presenter: Cameron Arial Estimated Time: 10 minutes
Topic: Draft First Amendment to the Urban Renewal Plan for the Union District Urban
Renewal Project
Recommended City Council/Meridian Development Corporation Action
Review and provide input to the Draft First Amendment to the Urban Renewal Plan for the Union
District Urban Renewal Project.
Background
The Second Amendment to the Meridian Revitalization Plan, providing for the deannexation of the
area referred to as the "Idaho Block" from the original downtown Meridian Revitalization District
("original downtown District"),was approved by the City Council and Meridian Development
Corporation ("MDC") Board of Directors, and formally adopted on July 13, 2020. On July 6, 2020,
Council accepted the Eligibility Report for the Idaho Block Study Area and directed MDC to
prepare an amended urban renewal plan for the area to be annexed into the existing 16-acre
Union District.
The proposed First Amendment to the Urban Renewal Plan for the Union District Urban Renewal
Project ("Amended Plan") encompasses the 11 parcels within 1.461 acres which were deannexed
from the original downtown District. Idaho Code Section 50-2033 permits a one-time annexation
of up to ten percent of the acreage of an existing district, providing the area to be added is adjacent
and contiguous to the existing district.
The Amended Plan does not reset the base for the existing Union District parcels. The assessed
values on January 1, 2021 will establish the base year value only for the 11-parcel Idaho Block
area to be annexed. The Amended Plan does not extend the life of the Union District,which will
still sunset on December 31, 2040.
The economic feasibility analysis (Attachment 5) shows projected private investment of
$225,737,000 over the life of the Union District. This includes the Union 93 project, the Civic Block
project, and anticipated development of the Idaho Block area.
Page 112
Item#2.
Future Actions
Following feedback and direction, MDC will finalize the Amended Plan. The remainder of the
timeline is summarized below:
August- September
• Circulate Amended Plan
• Intergovernmental Agreement negotiated and approved between MDC and Ada County
Highway District
• MDC Approval of Amended Plan
October
• Public Noticing Period
• Planning and Zoning Commission Validates Amended Plan Conformity with City
Comprehensive Plan
• Intergovernmental Agreement negotiated and approved between MDC and Ada County
November- December
• Three Ordinance Readings
• Public Hearing
• Final Council Adoption of Amended Plan
Attachment: First Amendment to the Urban Renewal Plan for the Union District Urban Renewal Project
Link: Urban Renewal Plan for the Union District Urban Renewal Project
2
Page 113
Item#2.
FIRST AMENDMENT TO THE
URBAN RENEWAL PLAN FOR THE UNION DISTRICT URBAN RENEWAL
PROJECT
MERIDIAN URBAN RENEWAL AGENCY
(also known as Meridian Development Corporation)
CITY OF MERIDIAN, IDAHO
Ordinance No. 20-1882
Adopted June 9, 2020
Effective June 19, 2020,publication
First Amendment to the Union District Plan
Ordinance No.
Adopted
Effective 2021, publication
FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT page 114
URBAN RENEWAL PROJECT- 1
Item#2.
BACKGROUND
This First Amendment ("First Amendment") to the Urban Renewal Plan for the Union
District Urban Renewal Project (the "Plan") amends the Plan for the following purpose: to add
approximately 1.46 acres (including rights-of-way) of land contiguous to the northwestern
boundary of the Union District Project Area and generally bounded by E. Idaho Avenue on the
north, NE 2nd Street on the east, a portion of Broadway Avenue on the south, and E. Main Street
on the west, an area referred to as the"Idaho Block." The scope of this First Amendment is limited
to addressing the addition of the Idaho Block to the Union District Project Area. It is important to
note this First Amendment to the Plan does not extend the Plan's duration. The Plan terminates on
December 31, 2040; however, revenue allocation proceeds will be received in 2041 pursuant to
Idaho Code Section 50-2905(7).
This First Amendment to the Plan, seeking to add the Idaho Block to the Union District
Project Area pursuant to Idaho Code Section 50-2033, is not deemed to be a modification under
Idaho Code Section 50-2903A. "Modification shall not be deemed to have occurred when:...(ii)
There is a plan amendment to accommodate an increase in the revenue allocation area boundary
as permitted in section 50-2033, Idaho Code..." Idaho Code Section 50-2903A(1)(a)(ii).
Idaho Code Section 50-2033 permits an urban renewal agency, after July 1, 2011, to add
area to an existing revenue allocation area one (1)time"so long as the total area to be added is not
greater than ten percent (10%) of the existing revenue allocation area and the area to be added is
contiguous to the existing revenue allocation area . . . ."Idaho Code § 50-2033. Contiguity cannot
be established solely by a shoestring or public railroad right-of-way. See Idaho Code § 50-2033.
The geographic area to be added to the Union District Project Area is contiguous to the existing
Project Area and is less than ten percent(10%) of the existing revenue allocation area.
A separate base assessment value will be established for the area to be added to the Union
District Project Area, effective retroactive to January 1, 2021. The Agency will receive an
allocation of revenues from the added area from any increases in value above the base value
through the remaining years of the Plan. The base values for the original Project Area will continue
to be retroactive to January 1, 2020.
The area to be added to the Union District Project Area was deemed to be a deteriorated
area and/or a deteriorating area under the Law and Act and, therefore, eligible for inclusion into
the existing revenue allocation area pursuant to the Idaho Block Annexation to Union District
(Proposed) Eligibility Report,prepared by Kushlan I Associates, dated June 2021 (the "Eligibility
Report"). The Eligibility Report was submitted to the Agency, which by adoption of Resolution
No. 21-027 on June 9, 2021, found the additional area to be eligible and authorized the
transmission of the Eligibility Report and Resolution to the Meridian City Council, together with
the Agency's recommendation that the area be designated as appropriate for an urban renewal
project, and seeking direction from the City Council to proceed with urban renewal plan
amendment. The Meridian City Council,by adoption of Resolution No. 21-2274 on July 6, 2021,
found the area under consideration to be a deteriorating area or a deteriorated area in the City, as
defined by the Law and the Act, and authorized preparation of a plan amendment.
FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT page 115
URBAN RENEWAL PROJECT- 2
Item#2.
AMENDMENTS TO THE PLAN
1. Definitions. Capitalized terms not otherwise defined herein shall have the respective
meanings ascribed to such terms in the Plan.
2. The following defined terms are amended throughout the Plan as follows:
a. Delete "Project Area" and replace with"Amended Project Area" except
where specifically referenced in this First Amendment.
b. Delete references to "Attachment 1" and replace with"Attachment 1, as
supplemented by Attachment IA" except where specifically referenced in this First Amendment.
C. Delete references to "Attachment 2" and replace with"Attachment 2, as
supplemented by Attachment 2A" except where specifically referenced in this First Amendment.
d. Delete references to "Attachment 4" and replace with "Attachment 4, as
supplemented by Attachment 4A" except where specifically referenced in this First Amendment
e. Delete references to "Attachment 5" and replace with"Attachment 5, as
supplemented by Attachment 5A" except where specifically referenced in this First Amendment.
3. Amendment to List of Attachments. The List of Attachments on page iii of the Plan is
amended by deleting the list of attachments and replacing it as follows:
Attachment 1 Boundary Map of Union District Urban Renewal Project
Area and Revenue Allocation Area
Attachment 1A Boundary Map of the Additional Area
Attachment 2 Legal Description of Union District Urban Renewal Project
Area and Revenue Allocation Area
Attachment 2A Legal Description of the Boundary of the Additional Area
Attachment 3 Properties Which May be Acquired by the Agency
Attachment 4 Map Depicting Expected Land Uses and Current Zoning
Map of the Project Area
Attachment 4A Map Depicting Expected Land Uses and Current Zoning
Within the Areas Added by the First Amendment
Attachment 5 Economic Feasibility Study
Attachment 5A Supplement to the Economic Feasibility Study: Financial
Analysis Related to the 2021 Annexation
FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT page 116
URBAN RENEWAL PROJECT- 3
Item#2.
4. Amendment to Section 100 of the Plan. Section 100 is amended by deleting the last
sentence of the first paragraph and replacing it as follows:
Attachments 1 through 5, as supplemented by Attachments 1A, 2A, 4A and 5A,
attached hereto (collectively, the "Plan Attachments, as supplemented") are
incorporated herein and shall be considered a part of this Plan.
5. Amendment to Section 102 of the Plan.
(a) Section 102 entitled"Procedures Necessary to Meet State and Local Requirements:
Conformance with Idaho Code Sections 50-2008 and 50-2906" is amended by adding new
paragraphs to the end of the existing language as follows:
Subsequent to the adoption of this Plan in 2020,in 2021,the Agency
retained a third-party consultant to review approximately 1.46 acres
of land adjacent and contiguous to the Project Area for an eligibility
determination for an urban renewal project. The area reviewed
included land contiguous to the northwestern boundary of the Union
District Project Area and generally bounded by E. Idaho Avenue on
the north,NE 2nd Street on the east, a portion of Broadway Avenue
on the south, and E. Main Street on the west(the "Idaho Block").
The additional area to be added to the Project Area was reviewed
and determined to be a deteriorated area and/or a deteriorating area
under the Law and the Act and,therefore, eligible for inclusion into
the existing revenue allocation area pursuant to the Idaho Block
Annexation to Union District Eligibility Report (proposed),
prepared by Kushlan I Associates, dated June 2021 (the "Eligibility
Report"). The Eligibility Report was submitted to the Agency,
which by adoption of Resolution No. 21-027 on June 9,2021, found
the additional area to be eligible and authorized the transmission of
the Eligibility Report and Resolution to the City Council, together
with the Agency's recommendation that the area be designated as
appropriate for an urban renewal plan amendment. The City Council
by adoption of Resolution No. 21-2274 on July 6, 2021, found the
area under consideration to be a deteriorating area or a deteriorated
area in the City, as defined by the Law and the Act, and authorized
preparation of a plan amendment. The 1.46 acres being added to the
Project Area hereby creates the "Amended Project Area" as further
described and shown in Attachments 1, 1A, 2, and 2A.
This First Amendment to the Plan (the "First Amendment") adds
certain parcels that were deannexed from the Downtown District in
2021 pursuant to the Second Amendment to the Meridian
Revitalization Plan.
FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT Page 117
URBAN RENEWAL PROJECT- 4
Item#2.
This First Amendment was prepared and submitted to the Agency
for its review and approval. The Agency approved the First
Amendment by the adoption of Resolution No. on
, 2021 and submitted the First Amendment to the City
Council with its recommendation for adoption.
In accordance with the Law,this First Amendment was submitted to
the Planning and Zoning Commission of the City of Meridian. After
consideration of the First Amendment, the Commission filed
Resolution dated ,2021,with the City Council stating
that the First 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 First Amendment. Notice of
the hearing was duly published in a newspaper having general
circulation in the City. The City Council adopted the First
Amendment on , 2021,pursuant to Ordinance No.
6. Amendment to Section 103 of the Plan. Section 103 is amended by adding new
paragraphs following the last paragraph as follows:
During 2021, the City, Agency, and other interested parties began to examine the
need to expand the Project Area to include additional area adjacent and contiguous to the
Project Area that continued to be underdeveloped.
The approximately 1.46 acres to be added to the Project Area includes eleven(11)
tax parcels with an Old Town (OT) zoning designation and are located within the older
developed area within the community. None of the parcels appear to be owner-occupied
residences. Only the south half of Idaho Avenue between Main Street and NE 2nd Street
is included. The area reviewed exhibited deteriorated conditions due to the age or
obsolescence of the structures. The area is transitioning to a modern commercial center
and the configuration of small lots does not accommodate modern commercial
development rendering redevelopment economically infeasible. Similarly, the eleven
(11)parcels range in size with the majority of lots under 5,000 square feet, which is an
insufficient size to accommodate economical economic development. Diversity of
ownership is also present, which makes land assemblage challenging. These above
conditions result in economic underdevelopment of the area and are conditions that
substantially impair and arrest the sound growth of the City.
The First Amendment embraces the principles set forth in the Plan and proposes
improvements to public infrastructure and other publicly owned assets throughout the
expansion area, creating the framework for the development of mixed-use, residential,
commercial, and retail areas, improvements to other public facilities, including, but not
limited to, streets, streetscapes, water and sewer improvements, environmental
remediation/site preparation,public parking, community facilities, and pedestrian/bike
FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT page 118
URBAN RENEWAL PROJECT- 5
Item#2.
amenities. The expansion area is underdeveloped and is not being used to its highest and
best use due to age and obsolescence, as well as faulty lot layout and diversity of
ownership.
7. Amendment to Section 200 of the Plan.
(a) Section 200 entitled "DESCRIPTION OF THE PROJECT AREA" is deleted and
replaced as follows:
DESCRIPTION OF THE AMENDED PROJECT AREA
The boundaries of the Project Area and of the Revenue Allocation
Area are shown on Attachment 1, Boundary Map of Union District
Urban Renewal Project Area and Revenue Allocation Area, and are
described in Attachment 2, Legal Description of Union District
Urban Renewal Project Area and Revenue Allocation Area.
The boundaries of the area added to the Project Area,pursuant to the
First Amendment, are shown on Attachment IA, Boundary Map of
the Additional Area, and are described in Attachment 2A, Legal
Description of the Boundary of the Additional Area. Collectively,
the Project Area, as amended, may be referred to as the "Amended
Project Area."
For purposes of boundary descriptions and use of proceeds for
payment of improvements, the boundary shall be deemed to extend
to the outer boundary of rights-of-way or other natural boundary
unless otherwise specified.
The attachments referenced above are attached hereto and are
incorporated herein by reference.
8. Amendment to Section 301 of the Plan. Section 301 is amended as
follows:
a. Section 301 is amended by deleting subsection (t) and
replacing it as follows:
t. The construction and financial support of cultural
facilities and the enhancement, installation and/or
construction of parks, open spaces, plazas, and public
recreational facilities;
b. Section 301 is amended by adding a new subsection (x) as
follows:
FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT page 119
URBAN RENEWAL PROJECT- 6
Item#2.
X. The provision of financial and other assistance to
encourage and support the Agency's facade improvement
program
9. Amendment to Section 502 of the Plan.
(a) Section 502 is amended by deleting the first sentence of the first paragraph and
replacing it as follows: The Agency hereby adopts revenue allocation financing provisions as
authorized by the Act, effective retroactively to January 1, 2020 for the original Project Area and
effective retroactively to January 1, 2021 for the area added to the Project Area by the First
Amendment.
(b) Section 502 is amended by deleting the first and second sentences of the fifth
paragraph and replacing them as follows: A statement listing proposed public improvements and
facilities, an economic feasibility study, estimated project costs, fiscal impact upon other taxing
districts, and methods of financing project costs required by Idaho Code Section 50-2905 is
included in Attachment 5 for the Project Area, and as supplemented in Attachment 5A for the area
added by the First Amendment. The information contained in Attachment 5A necessarily
incorporates estimates and projections based on the Agency's present knowledge and expectations
and includes analysis and assessment based on the additional 1.461 acres added to the Project Area.
10. Amendment to Section 502.1 of the Plan. Section 502.1 is amended by deleting
Section 502.1 and replacing it as follows:
Attachment 5 consists of the Economic Feasibility Study for the Union District
Urban Renewal Area prepared by Kushlan I Associates and SMR Development, LLC.
Attachment 5A consists of the Economic Feasibility Study for the area added to the Project
Area by the First Amendment prepared by Kushlan I Associates (collectively,Attachments
5 and 5A are referred to as the "Study"). The Study constitutes the financial analysis
required by the Act.
11. Amendment to Section 502.3 of the Plan. Section 502.3 is amended by deleting
Section 502.3 and replacing it as follows:
Under the Act, the base assessed valuation for all revenue allocation areas cannot
exceed gross/net ten percent(10%) of the current assessed taxable value for the entire City.
According to the Ada County Assessor,the assessed taxable value for the City as of January
FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT Page�20
URBAN RENEWAL PROJECT- 7
Item#2.
1, 20211 less homeowners' exemption is $10,375,837,804. Therefore, the 10% limit is
$1,037,583,780.
The adjusted base assessed value of each of the existing revenue allocation areas,
plus the expansion area, as of January 1, 2021, is as follows:
Downtown District2 $146,334,050
Ten Mile District $39,539,125
Union District $2,144,360
Proposed Union District Project Area Amendment $3,414,100
Proposed Northern Gateway District $68,832,974
Proposed Linder District $11,978,500
TOTAL: $272,243,109
The adjusted base values for the combined revenue allocation areas total
$272,243,109, which is less than 10% of the City's (non-equalized) 2021 taxable value.
Further, Idaho Code Section 50-2033 provides that after July 1, 2011: "[a]n urban
renewal plan that includes a revenue allocation area may be extended only one (1) time to
extend the boundary of the revenue allocation area so long as the total are to be added is
not greater than ten percent (10%) of the existing revenue allocation area and the area to
be added is contiguous to the existing revenue allocation area but such contiguity cannot
be established solely by a shoestring or strip of land which comprises a railroad or public
right-of-way." The Project Area consists of approximately 16 acres; therefore, the 10%
geographic limit is approximately 1.6 acres. The area to be added to the Project Area,which
is adjacent and contiguous to the Project Area, consists of approximately 1.461 acres,
which is less than 10% of the acreage included in the Project Area.
12. Amendment to Section 502.7 of the Plan.
(a) Section 502.7 is amended by adding a new sentence at the end of the second
sentence of the second paragraph as follows: The addition of the geographic area to the Project
Area pursuant to the First Amendment does not reset the base; however, for the area added, the
base value is the assessed value as of January 1 of the year in which the municipality approved the
expansion or, in this instance, January 1, 2021.
(b) Section 502.7 is amended by adding a new footnote following the fourth sentence
of the second paragraph as follows: House Bill 389 passed during the 2021 Legislative Session,
effective in significant part as of January 1, 2021, further limits a taxing entity's ability to increase
1 Due to the timing of the assessment process and creation of this Plan,the 2021 (non-equalized)values have been
used to establish compliance with the 10%limitation.Using the 2021 values,the total adjusted base value of the
existing and proposed revenue allocation areas combined with the value of this Project Area are less than 2.62% of
the total taxable value of the City.
2 Less area deannexed by the First Amendment to the Meridian Revitalization Plan Urban Renewal Project,and the
Second Amendment to the Meridian Revitalization Plan Urban Renewal Project.
FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT page 121
URBAN RENEWAL PROJECT- 8
Item#2.
the property tax portion of its budget. The Supplement to the Economic Feasibility Study:
Financial Analysis Related to the 2021 Annexation, included as Attachment 5A, has considered
the impact of House Bill 389 on the Project's overall feasibility.
(c) Section 502.7 is amended by adding a new footnote following the first sentence of
the fifth paragraph as follows: House Bill 389 amended Idaho Code Sections 63-802 and 63-301A
limiting the value placed on the new construction roll and available to a taxing district for a budget
capacity increase. This could result in lower levy rates over time.
(d) Section 502.7 is amended by deleting the last sentence of the fifth paragraph and
replacing it as follows: Upon termination of this Plan, as amended by the First Amendment, and
the Amended Project Area, the taxing entities will be able to include a percentage of the
accumulated new construction roll value in setting the following year's budget and revenue
pursuant to Idaho Code Sections 63-802 and 63-301A.
(e) Section 502.7 is amended by adding new paragraphs following the end of the
seventh paragraph as follows:
Pursuant to the First Amendment and Attachment 5A concerning the expansion, as 2021
certified levy rates are not determined until late September 2021,the 2020 certified levy rates have
been used in the Study.4 Those taxing districts and rates are as follows:
Taxinfz Districts: Lew Rates:
The City of Meridian .002230856
The West Ada School District(School District No. 2) .000014472
Ada County .002149935
Emergency Medical District/Ada County Ambulance .000118422
Mosquito Abatement District .000021106
The Ada County Highway District .000701539
Meridian Library District .000430489
Meridian Cemetery District .000048343
Western Ada Recreation District .000037736
College of Western Idaho .000124266
TOTAL .005877164
House Bill 587, as amended in the Senate, effective July 1, 2020, amends Idaho Code
Section 50-2908 altering the allocation of revenue allocation funds to the Agency from the Ada
s Pursuant to House Bill 389,80%of the total eligible increment value is added to the new construction roll.
4 Due to the timing of the taxing districts'budget and levy setting process,certification of the 2021 levy rates did
not occur until this First Amendment had been prepared and considered by the Agency.In order to provide a basis to
analyze the impact on the taxing entities,the 2020 levy rates are used.Use of the 2020 levy rates provides a more
accurate base than estimating the 2021 levy rates.
5 Net of voter approved bonds and levies.
FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT Page 122
URBAN RENEWAL PROJECT- 9
Item#2.
County Highway District levy 6. This amendment will apply to the expansion area added by this
First Amendment and provides: "[i]n the case of a revenue allocation area first formed or
expanded to include the property on or after July 1, 2020, all taxes levied by any highway
district,unless the local governing body that created the revenue allocation area has
responsibility for the maintenance of roads or highways"will be allocated to the applicable
highway district, which in this case is the Ada County Highway District.
However, amended Idaho Code Section 50-2908 further provides the highway district
and Agency may enter into an agreement for a different allocation. A copy of any agreement is
required to be submitted to the Idaho State Tax Commission and to the Ada County Clerk by the
Ada County Highway District as soon as practicable after the parties have entered into the
agreement and by no later than September 1 of the year in which the agreement takes effect. The
Agency intends to work with the Ada County Highway District to enter into an agreement
allowing the Agency to retain the revenues from the highway district levies for the expansion
area. No agreement is required for the original Project Area.
The Study has made certain assumptions concerning the levy rate. The levy rate is
estimated to be 10% lower than the combined 2020 certified levy rate to adjust for the impact of
House Bill 389, as well as considering the rapidly increasing property values. The levy rate is
anticipated to remain level for the life of the Project Area. As the actual impact of the property
value fluctuations on the levy rate is unknown, the Study has assumed a combined conservative
levy rate of.0053. Land values are estimated to inflate at 8%/year for five (5) years and then
inflate at a rate of 4%/year for the remaining duration of the Project Area. Improvement values
are estimated to inflate at a rate of 10%/year for five (5)years, and thereafter are estimated to
inflate at a rate of 5%/year for the duration of the Project Area. Estimated new development is
anticipated occur annually and be fully on the tax rolls from year 2025 through 2029. If the
overall levy rate is less than projected, or if expected development fails to occur as estimated, the
Agency shall receive fewer funds from revenue allocation. The Study has also considered the
timing of the original projects identified in the Plan and pushed back the completion timeline
where necessary to account for current market conditions.
13. Amendment to Section 800 of the Plan.
Section 800 is amended by adding a new sentence at the end of the first paragraph as
follows: The addition of parcels to the original Project Area pursuant to this First Amendment
has no impact on the duration of this Plan.
14. Amendment to Plan to add new Attachment 1A. The Plan is amended to add new
Attachment lA entitled"Boundary Map of the Additional Area," attached hereto.
15. Amendment to Plan to add new Attachment 2A. The Plan is amended to add new
Attachment 2A entitled "Legal Description of the Boundary of the Additional Area," attached
hereto.
6 Senate Bill 1107,as amended in the Senate,effective July 1,2021,made a corresponding amendment to Idaho
Code Section 40-1415(3)to address the responsibility for funding certain urban renewal projects.
FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT page 123
URBAN RENEWAL PROJECT- 10
Item#2.
16. Amendment to Plan to add new Attachment 4A. The Plan is amended to add new
Attachment 4A entitled"Map Depicting Expected Land Uses and Current Zoning Within the Areas
Added by the First Amendment," attached hereto.
17. Amendment to Plan to add new Attachment 5A. The Plan is amended to add new
Attachment 5A entitled "Supplement to the Economic Feasibility Study: Financial Analysis
Related to the 2021 Annexation," attached hereto.
18. Union District Plan Remains in Effect. Except as expressly modified in this First
Amendment, the Plan and the Attachments thereto remain in full force and effect.
FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT page 124
URBAN RENEWAL PROJECT- 11
Item#2.
Attachment IA
Boundary Map of the Additional Area
Page 125
F
EXHISI T B
H TO ACCOMPANY URBAN RENEWAL DISTRICT DESCRIPTION
FOR MERIDIAN DEVELOPMENT CORPORATION LOCATED IN THE
NW 114 OF THE SW 114 OF SECTION 7, TOWNSHIP 3 NORTH,
RANGE 1 EAST, BOISE MERIDIAN, ADA COUNTY, IDAHO
POINT OF E IDAHO AVENUE
BEGINNING BAS15 OF BEARING
5 88'43`59" E 380.05'
4a00' 0 E 50004' 40.00'
D °
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60.42' 3G.01' 120.n5'
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S 88'44 00" E ..380. 18'
E BROAD WAY AVENUE
LEGEND
URD BOUNDARY ��A L A N
\ \ URD AREA
18�
CIVIL SURVEY CONSULTANTS, INC.
2893 SOUTH MERIDIAN ROAD
MERIDIAN, IDAHO 83642 A K013
(208)886-4312 SCALE 1"=50'
Page 126
Item#2.
Attachment 2A
Legal Description of the Boundary of the Additional Area
Page 127
Item#2.
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 TOWNSITF 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 gears S 88'43'S9" 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 88043'59" 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°4359" 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
Page 128
Item#2.
Thence continuing N 0'33'09" E on are 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. Koornler, PLS rI QNpL Aly �
Civil survey Consultants, Incorporated ' C NSIS G�
May 26, 2021
1078 0
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A. KO�
Page 2 of 2
Page 129
Item#2.
Attachment 4A
Map Depicting Expected Land Uses and Current Zoning Within the Areas Added by the First
Amendment
Page 130
Item#2.
u ure Land Uses
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Page 131l
Item#2.
ornng
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Page 132
Item#2.
Attachment 5A
Supplement to the Economic Feasibility Study:
Financial Analysis Related to the 2021 Annexation
4851-4344-7734,v.3
Page 133
Item#2.
ATTACHMENT 5.1A
Public Improvements within the Revenue Allocation Area
This attachment includes a projected list of proposed public works or improvements
within the Union District Project Area, as amended by the First Amendment to the
Urban Renewal Plan for the Union District Urban Renewal Project (the "First
Amendment"), which added approximately 1.46 acres to the Union District Project Area
pursuant to Idaho Code Sections 50-2903A(1)(a)(ii) and 50-2033 (the "Amended Project
Area"). This Attachment 5A, the Supplement to the Economic Feasibility Study:
Financial Analysis Related to the 2021 Annexation, is intended to address the scope of
projects related to the expansion area; however, portions of the Economic Feasibility
Study may be restated if additional information is available related to the timing of
projects impacting revenue generation and project funding in the expansion area. The
proposed improvements within the Amended Project Area include improvements to
streets, utilities, and other public rights-of-way amenities as well as construction and/or
improvements to parks, plazas and open space, a community center, fagade
improvements, public parking (structured and surface parking), property acquisition to
support development and/or redevelopment goals, and brownfield and/or
environmental clean-up.
The Union District Improvement List set forth below identifies needed investments to
support private investment in capital facilities. Capital facilities generally have long
useful lives and significant costs. The overall project and the infrastructure to support it
are all consistent with the vision articulated in the City of Meridian Comprehensive Plan,
Destination: Downtown Plan, the future land use map and as required in City
development regulations. The cost estimates provided by owner/developers and the
City are based upon prices for similar construction in the area.
Estimated costs expected to be incurred in implementing the Urban Renewal Plan for
the Union District Urban Renewal Project (the "Plan") as amended by the First
Amendment are as follows:
Union District Improvement List
Community Center Construction $6,450,000
Net District Cost Construction $6,450,000
Community Center Site Improvements $1,615,000
Structured Public Parking $4,250,000
Sub-Total $5,865,000
Total Community Center Cost $12,315,000
Page 134
Item#2.
Proposed Public Infrastructure, including Engineering, Design, Installation,
Construction, and/or Reconstruction of:
Improvements to 3rd Street
Improvements to Broadway Avenue
Intersection Improvements and Rail Crossing Safety Enhancements
Pedestrian improvements
Streetscape Improvements
Sewer Infrastructure Improvements
Water Infrastructure Improvements
Electrical Distribution Improvements
Right-of-Way Landscaping Improvements
Utility Relocations
Lateral Relocation and Improvements
Irrigation and Drainage Improvements
Public Improvements Sub-total $1,215,000
Additional Public Parking $3,810,000
Other Eligible Public Infrastructure Improvements
Fagade Improvements $ 750,000
Property Acquisition $ 3,500,000
Public Plazas, Parks & Open Space $ 3,000,000
Environmental Remediation $ 2,250,000
Idaho Avenue Improvements $ 1,000,000
Planning Studies $ 259,000
Grand Total $28,099,000
The projects and estimated costs have been derived from Galena Opportunity Fund and
updated by the City and the Meridian Development Corporation (MDC) based upon
similar works being carried out in the broader community and existing market
conditions. The costs related to the expansion area improvements are estimated in
2021 dollars and are not inflated. Costs will likely vary from the costs detailed here, as
they will be subject to inflation and further project refinement and timing. The cost
estimates used in this analysis are considered estimates for the purpose of financial
planning.
The Amended Project Area is estimated to generate $25,389,904 in tax increment
revenue between 2020 and 20401 in addition to the initial $100,000 loan from the MDC
'As the Idaho property tax system provides for taxes being paid in arears, Revenue Allocation funds will be
received in FY 2041 after formal closure of the Union District, as amended. However, the final year of
income has not been considered in determining the economic feasibility of the Union District, as amended.
Page 135
Item#2.
to activate the program. Additional potential sources of funding for the identified
projects may include funding in the amount of$3,800,000 from the City to support the
Community Center project recognizing the City is not committing funds to this Project
and any commitment would occur through the City's appropriations/budget process.
Further funding may be available through grants.
The total from all sources is estimated to be $29,289,904. There are presently
$28,099,000 of project costs identified in the Union District Improvement List provided
by the developer and the City. The fiscal analysis generally assumes projects will be
implemented by developers as part of certain private developments within the Union
District Project Area, as amended, specifically related to the Meridian Station Project
and the Civic Block Project as contemplated in the original Plan, and the Idaho Block
project in the expansion area. It is assumed that the developers will be reimbursed
through Owner Participation Agreements (OPA) from resources derived from the
Amended Revenue Allocation Area established with the Union District Project Area, as
amended by the First Amendment. Projects are also anticipated to occur on a pay-as-
you-go basis, in addition to funding from other public entities, if available, and any
available grant funding.
Administrative costs over the 20-year life of the district are estimated at $920,000 or
approximately 3.16% of total estimated revenue. The initial inter-district loan to
support startup costs is assumed to be repaid at 5% simple interest for a total obligation
of$115'0002.
The total estimated expenditures equal $29,134,000, leaving a $155,903 positive
program balance of at the end of the 20-year term. See attached cash flow analyses for
detailed estimates.
The Plan, as amended by the First Amendment, provides for the Plan and Amended
Project Area to extend through its maximum term of 20 years. This First Amendment
will constitute the one-time annexation to the Union District Project Area as permitted
in Idaho Code 50-2033.
Secure funding includes revenue allocation funds and is money MDC is highly likely to
receive. The funds may not be in MDC's possession at the beginning of the Plan period,
but it is virtually certain that MDC will receive the funds. MDC may need to take specific
actions to generate the funding, but those actions are within its powers. Despite the
high probability of secure funding, no project can proceed until a specific, enforceable
funding plan is in place.
z The amount of revenue allocation proceeds dedicated to the administration of the Union District, as
amended[$802,183 shown in Forecast]is supplemented by the Inter-district loan to produce the full
amount over the life of the District)
Page 136
Item#2.
Potential funding is money that might be received by MDC. In every case MDC is eligible
for the funding, and the source of funding exists under current law. However, each
potential funding source requires one or more additional steps or decisions before MDC
can obtain the resources, and the ultimate decision is outside of MDC's independent
control. The City's potential capital contribution and grant funds are an example of
potential funding. Thus, potential funding is not assumed in determining financial
feasibility.
Unfunded projects, or portions of projects lack secure or potential funding. At this time,
all projects are anticipated to be funded.
The amount of tax increment contributed to the project will may vary depending upon
the actual cost of infrastructure.
The Plan, as amended by the First Amendment, proposes certain public improvements
that will facilitate development in the Amended Project Area. The overall investment
package could be funded from a variety of financing methods and sources. The primary
method of financing MDC's obligation will be through the use of tax increment revenue
(i.e., incremental property taxes from the revenue allocation area). This Plan, as
amended by the First Amendment, anticipates that at least a portion of the tax
increment revenue will be used to reimburse an owner/developer through a negotiated
agreement for some or all of the eligible improvement costs or through direct
investment by MDC.
Other sources of funding for project may include, but are not limited to:
• Local Improvement District (LID)
• Business Improvement District (BID)
• Development Impact Fees
• Franchise Fees
• Grants from federal, state, local, regional agencies and/or private entities
• Other bonds, notes and/or loans
• Improvements and/or payments by developers
The total project costs and the amount of tax increment are estimates. The estimated
project costs and revenues are based on MDC's present knowledge and expectations
supported by detailed information from property owners, developers, City and MDC
staff and MDC's consultants based in part upon current construction projects in the
broader community.
Page 137
Item#2.
Summary of Protects
Based on the Union District Improvement List, as amended by the First Amendment, set
forth above, the estimated total costs for the public improvements are $28,099,000.
Cost of Operations and Improvements by Year (2020-2041)
Year Secure Potential District MDC Loan Funds for Total Project
Funding Funding Operating Debt Program, Liabilities
(TIF Expenses Service Capital,and
& Debt Service
MDC Loan) Expenses
2020 $75,000 $0 $25,000 $0 $25,000
2021 $25,000 $0 $25,000 $0 $25,000
2022 $3,430 $0 $25,000 $0 $25,000
2023 $7,167 $0 $25,000 $0 $0 $25,000
2024 $11,237 $0 $20,000 $0 $0 $20.000
2025 $390,630 *$3,800,0000 $50,000 $0 $4,100,000 $4,150,000
2026 $676,794 $0 $50,000 $115,000 $475,000 $640,000
2027 $1,003,700 $0 $50,000 $0 $900,000 $950,000
2028 $1,187,991 $0 $50,000 $0 $1,100,000 $1,150,000
2029 $1,381,483 $0 $50,000 $0 $1,350,000 $1,400,000
2030 $1,452,136 $0 $50,000 $0 $1,400,000 $1,450,000
2031 $1,526,307 $0 $50,000 $0 $1,500,000 $1,550,000
2032 $1,604,171 $0 $50,000 $0 $1,550,000 $1,600,000
2033 $1,685,912 $0 $50,000 $0 $1,550,000 $1,600,000
2034 $1,771,724 $0 $50,000 $0 $1,800,000 $1,850,000
2035 $1,861,809 $0 $50,000 $0 $1,800,000 $1,850.000
2036 $1,956,381 $0 $50,000 $0 $1,900,000 $1,950,000
2037 $2,055,662 $0 $50,000 $0 $2,000,000 $2,050,000
2038 $2,159,889 $0 $50,000 0 $2,100,000, $2,150,000
2039 $2,269,306 $0 $50,000 $0 $2,250,000 $2,300,000
2040 $2,384,174 $0 $50,000 $0 $2,324,000 $2,374,000
2041 $0 $0 0 $0 $0
Total $25,489 903 $3,800,000 $920,000 $115,000 $28,099,000 $29,134,000
Note: This analysis anticipates a positive fund balance of$155,903 the end of the
project.
*Potential City contribution to the Community Center Project. Not a binding
commitment. Any City funding would be subject to annual appropriations/budgeting
considerations.
Page 138
Item#2.
ATTACHMENT 5.2A
Economic Feasibility Study
The Plan as amended by the First Amendment, is economically feasible because the
proposed development is sufficient to fully cover the anticipated cost of the
redevelopment program.
The economic feasibility of the Plan, as amended by the First Amendment, is based on
the following factors:
• The amount of development anticipated in the Amended Project Area
• The timing of the proposed taxable development
• The nature of the proposed development
• The amount of tax revenue to be generated by the proposed development
• The cost of public improvement projects.
• If revenue equals or exceeds project costs, URA Plan is economically feasible.
The following is a summary of the analysis and estimates of the factors used to
determine the economic feasibility of the Plan, as amended by the First Amendment.
The Economic Feasibility Analysis
Summary:
Over the course of the Plan and the Union District Project Area, as amended by the First
Amendment, $25,389,904 of Tax Increment Revenue is estimated to be generated
using the development scenarios proposed by property owners/developers within the
Union District Project Area, as amended by the First Amendment, the City and MDC, in
consultation with its consultants. The Economic Feasibility Study assumes 10% of
annual revenue allocation area proceeds, or TIF revenue, will be used for administration
of the Union District, as amended by the First Amendment, with that amount capped at
$50,000 per year, for a total of$920,000 for administration costs over the 20-year
lifespan of the District.
The attached spreadsheets entitled "Union District Revenue Model, as amended by the
First Amendment" and "Union District, as amended by the First Amendment, Cash Flow
Analysis" gives a more detailed outlook on the revenues and expenses of the
development scenario.
The following assumptions were made in the formulation of the Financial Feasibility
Analysis:
o Land Value Increase @ 8%/Year for 5 years then 4%/year through the
remainder of the term
Page 139
Item#2.
o Improvement Value Increase @ 10%/Year then 5%/year through the
remainder of the term,
o Tax Rate reduced by 10% and then held constant through the life of the
Plan
o Total Cost of Improvements over the life of the project: $28,099,000
o Tax rate does not include levies excluded pursuant to Idaho Code 50-
2908, such as voter approved bonds/levies after 2007,judgment levies or
the School District Plant or supplemental levies excluded by law.
The Economic Feasibility Analysis shows that the project will generate adequate funds
within the Amended Project Area to fund the necessary capital improvements.
4831-7174-6294,v.4
Page 140
Item#2.
DRAFT
Land Value Impr.Value Cum.New
Total Annual New Cumulative Increment Tax Funding for
6(+8%annually (+10%for 5 Const Value+ Taxable Levy Rate Admin
Year Assessed Const.Value Homeowners' Value (H Increment Capital Projects
for 5 years years then Value Inflation @ (-10%) Costs(10%)
5% Value on tax roll 10%and 5% Exemption � Base Value) Yield /Debt Service
then 4%) )
AL
2020 $ 4,033,200 $ - $ 4,033,200 $ $ - $ $ 4,033,200 $ 0.0053
2021 $ 4,355,856 $ 2,987,700 $ 7,343,556 $ $ $ $ 7,343,556 $ - 0.0053 $ - $ - $ -
2022 $ 4,704,324 $ 3,286,470 $ 7,990,794 $ $ $ $ 7,990,794 $ 647,238 0.0053 $ 3,430 $ 343 $ 3,087
2023 $ 5,080,670 $ 3,615,117 $ 8,695,787 $ $ $ $ 8,695,787 $ 1,352,231 0.0053 $ 7,167 $ 717 $ 6,450
2024 $ 5,487,124 $ 3,976,629 $ 9,463,753 $ $ $ $ 9,463,753 $ 2,120,197 0.0053 $ 11,237 $ 1,124 $ 10,113
2025 $ 5,926,094 $ 4,374,292 $ 10,300,386 $ 70,747,000 $ 70,747,000 $ $ 81,047,386 $ 73,703,830 0.0053 $ 390,630 $ 50,000 $ 340,630
2026 $ 6,163,138 $ 4,593,006 $ 10,756,144 $ 50,000,000 $ 124,284,350 $ $ 135,040,494 $ 127,696,938 0.0053 $ 676,794 $ 50,000 $ 626,794
2027 $ 6,409,663 $ 4,822,656 $ 11,232,320 $ 54,990,000 $ 185,488,568 $ $ 196,720,887 $ 189,377,331 0.0053 $ 1,003,700 $ 50,000 $ 953,700
2028 $ 6,666,050 $ 5,063,789 $ 11,729,839 $ 25,000,000 $ 219,762,996 $ $ 231,492,835 $224,149,279 0.0053 $ 1,187,991 $ 50,000 $ 1,137,991
2029 $ 6,932,692 $ 5,316,979 $ 12,249,671 $ 25,000,000 $ 255,751,146 $ $ 268,000,816 $260,657,260 0.0053 $ 1,381,483 $ 50,000 $ 1,331,483
2030 $ 7,209,999 $ 5,582,828 $ 12,792,827 $ $ 268,538,703 $ $ 281,331,530 $273,987,974 0.0053 $ 1,452,136 $ 50,000 $ 1,402,136
2031 $ 7,498,399 $ 5,861,969 $ 13,360,369 $ $ 281,965,638 $ $ 295,326,007 $287,982,451 0.0053 $ 1,526,307 $ 50,000 $ 1,476,307
2032 $ 7,798,335 $ 6,155,068 $ 13,953,403 $ $ 296,063,920 $ $ 310,017,323 $302,673,767 0.0053 $ 1,604,171 $ 50,000 $ 1,554,171
2033 $ 8,110,269 $ 6,462,821 $ 14,573,090 $ $ 310,867,116 $ $ 325,440,206 $318,096,650 0.0053 $ 1,685,912 $ 50,000 $ 1,635,912
2034 $ 8,434,680 $ 6,785,962 $ 15,220,642 $ $ 326,410,472 $ $ 341,631,113 $334,287,557 0.0053 $ 1,771,724 $ 50,000 $ 1,721,724
2035 $ 8,772,067 $ 7,125,260 $ 15,897,327 $ $ 342,730,995 $ $ 358,628,322 $351,284,766 0.0053 $ 1,861,809 $ 50,000 $ 1,811,809
2036 $ 9,122,949 $ 7,481,523 $ 16,604,472 $ $ 359,867,545 $ $ 376,472,018 $369,128,462 0.0053 $ 1,956,381 $ 50,000 $ 1,906,381
2037 $ 9,487,867 $ 7,855,599 $ 17,343,467 $ $ 377,860,922 $ $ 395,204,389 $387,860,833 0.0053 $ 2,055,662 $ 50,000 $ 2,005,662
2038 $ 9,867,382 $ 8,248,379 $ 18,115,761 $ $ 396,753,969 $ $ 414,869,730 $407,526,174 0.0053 $ 2,159,889 $ 50,000 $ 2,109,889
2039 $ 10,262,077 $ 8,660,798 $ 18,922,876 $ $ 416,591,667 $ $ 435,514,542 $428,170,986 0.0053 $ 2,269,306 $ 50,000 $ 2,219,306
2040 $ 10,672,561 $ 9,093,838 $ 19,766,399 $ $ 437,421,250 $ $ 457,187,649 $449,844,093 0.0053 $ 2,384,174 $ 50,000 $ 2,334,174
$225,737,000 $ 25,389,904 $ 802,183 $ 24,587,721
Assumptions:
Values based on Ada County Assesor 2019 Data for original District properties(latest available)then 2020 values for Idaho Block expansion area
Land values inflate at 8%per year for 5 years,then 4%for the remainder of the Plan term
Improvement values inflate at 10%per year for 5 years then 5%for the remainder of the term
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Item#2.
Tax Rate reduced by 10%in consideration of impacts of HB389;anticipation of potential further modifications to the property tax system;and the further termin
Idaho Block Annexed to original Union District in 2021
New construction values based upon developer's estimates
Earliest C.O for private development projects will be in 2024
Residential units will not be owner occupied and thus not subject to the Homeowners Property Tax Exemption
Residential units will all be market rate rental units
10%of annual Revenue Allocation yield will be paid to Meridian Development Corporation for administration-Capped at$50,000/year
Balance of Revenue Allocation Yield will be available for capital investment and/or program expenses
City of Meridian,subject to available funds pursuant to annual appropriations and budgeting,may provide$3,800,000 in 2025 to support development of a Comrr
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Item#2.
DRAFT Union District, as amended by the First Amendment,
Cash Flow Analysis DRAFT
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Beginning Balance $ $ 50,000 $ 50,000 $ 28,430 $ 10,597 $ 1,834 $ 42,464 $ 79,258 $ 132,958 $ 170,949 $ 152,432
Source of Funds
Total Revenue Allocation $ $ - $ 3,430 $ 7,167 $ 11,237 $ 390,630 $ 676,794 $1,003,700 $1,187,991 $ 1,381,483 $ 1,452,136
MDC Inter-District Loan* $ 75,000 $ 25,000 $ - $ - $ - $ - $ - $ - $ - $ - $ -
City Community Center Contribution $3,800,000
Total annnual Funds Available $ 75,000 $ 75,000 $ 53,430 $ 35,597 $ 21,834 $4,192,464 $ 719,258 $1,082,958 $1,320,949 $ 1,552,432 $ 1,604,568
Use of Funds
District Operating Expenses $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 20,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
Repay Inter-District Loan @ 5% $ - $ - $ - $ - $ - $ - $ 115,000 $ - $ - $ - $ -
Program,Capital and Debt Service Expenses $ - $ - $ - $ - $4,100,000 $ 475,000 $ 900,000 $1,100,000 $ 1,350,000 $ 1,400,000
Total Use of Funds $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 20,000 $4,150,000 $ 640,000 $ 950,000 $1,150,000 $ 1,400,000 $ 1,450,000
Ending Balance 5 50,000 $ 50,000 $ 28,430 $ 10,597 $ 1,834 $ 42,464 $ 79,258 $ 132,958 $ 170,949 $ 152,432 $ 154,568
2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Total
Beoinning Balance $ 154,568 $ 130,875 $ 135,046 $ 220,958 $ 142,682 $ 154,491 $ 160,872 $ 166,534 $ 176,423 $ 145,729
Source of Funds
Total Revenue Allocation $ 1,526,307 $ 1,604,171 $ 1,685,912 $ 1,771,724 $1,861,809 $1,956,381 $2,055,662 $2,159,889 $2,269,306 $ 2,384,174 $25,389,903
MDC Inter-District Loan $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 100,000
City Community Center Contribution $ 3,800,000
Total Funds Available $ 1,680,875 $ 1,735,046 $ 1,820,958 $ 1,992,682 $2,004,491 $2,110,872 $2,216,534 $2,326,423 $2,445,729 $ 2,529,903 $29,289,903
Use of Funds
District Operating Expenses $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 920,000
Repay Inter-district Loan @ 5% $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 115,000
Program,Capital and Debt Service Expenses $ 1,500,000 $ 1,550,000 $ 1,550,000 $ 1,800,000 $1,800,000 $1,900,000 $2,000,000 $2,100,000 $2,250,000 $ 2,324,000 $28,099,000
Total Use of Funds $ 1,550,000 $ 1,600,000 $ 1,600,000 $ 1,850,000 $1,850,000 $1,950,000 $2,050,000 $2,150,000 $2,300,000 $ 2,374,000 $29,134,000
Ending Balance $ 130,875 $ 135,046 $ 220,958 $ 142,682 $ 154,491 $ 160,872 $ 166,534 $ 176,423 $ 145,729 $ 155,903
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Item#2.
DRAFT Union District, as amended by the First Amendment,
Cash Flow Analysis DRAFT
Assumigtions
Initial District Start-up costs supported by MDC Inter-district Loan of$100,000 to be repaid at 5%Interest
10%of annual TIF yield dedicated to Meridian Development Corporation for District operating Expenses,capped at$50,000,Yr.
Land Values will increase at an average of 8%annually for 5 years then at 4010 over the remaining life of the District
Improvement Values will increase at an average of 10%annually for 5 years then at 5%over the remaing life of the District
$28,124,000 available for District Program Expenses, Capital Investment and Debt Service*
*Includes$3,800,000 City of Meridian contribution to Community Center;not a binding commitment
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