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Northern Gateway_Option B_Agency Resolution 4850-3179-2890 v.4 MERIDIAN DEVELOPMENT CORPORATION THE URBAN RENEWAL AGENCY OF THE CITY OF MERIDIAN RESOLUTION NO. 21-037 BY THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF MERIDIAN, IDAHO, A/K/A THE MERIDIAN DEVELOPMENT CORPORATION: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF MERIDIAN, IDAHO, ALSO KNOWN AS THE MERIDIAN DEVELOPMENT CORPORATION, RECOMMENDING AND ADOPTING THE (OPTION B) URBAN RENEWAL PLAN FOR THE NORTHERN GATEWAY DISTRICT URBAN RENEWAL PROJECT, WHICH PLAN INCLUDES REVENUE ALLOCATION FINANCING PROVISIONS SUBJECT TO CERTAIN CONDITIONS; AUTHORIZING AND DIRECTING THE CHAIR, VICE-CHAIR, OR ADMINISTRATOR AND THE SECRETARY OF THE AGENCY TO MAKE CERTAIN TECHNICAL CHANGES; AUTHORIZING AND DIRECTING THE CHAIR, VICE- CHAIR AND ADMINISTRATOR TO TAKE APPROPRIATE ACTION; PROVIDING FOR THIS RESOLUTION TO BE EFFECTIVE UPON ITS PASSAGE AND APPROVAL; AND PROVIDING AN EFFECTIVE DATE. THIS RESOLUTION, made on the date hereinafter set forth by the Urban Renewal Agency of Meridian, Idaho, also known as the Meridian Development Corporation, an independent public body, corporate and politic, authorized under the authority of the Idaho Urban Renewal Law of 1965, Chapter 20, Title 50, Idaho Code, as amended (the "Law") and the Local Economic Development Act, Chapter 29, Title 50, Idaho Code, as amended (the "Act"), a duly created and functioning urban renewal agency for Meridian, Idaho, hereinafter referred to as the "MDC"; WHEREAS, on July 24, 2001, the City Council (the "City Council") of the City of Meridian, Idaho (the "City"), adopted Resolution No. 01-367 establishing MDC pursuant to the Law; WHEREAS, the City Council, after notice duly published, conducted a public hearing on the Meridian Revitalization Plan Urban Renewal Project, which is also referred to as the Downtown District (the "Downtown District Plan"); WHEREAS, following said public hearing, the City Council adopted its Ordinance No. 02-987 on December 3, 2002, approving the Downtown District Plan, making certain findings, and establishing the Downtown District revenue allocation area (the "Downtown District Project Area"); RESOLUTION NO. 21-037 - 1 WHEREAS, the City Council, after notice duly published, conducted a public hearing on the Ten Mile Road Urban Renewal Plan (the "Ten Mile Plan"). The public hearing was continued to June 21, 2016, for further testimony; WHEREAS, following said public hearings, the City Council adopted its Ordinance No. 16-1695 on June 21, 2016, approving the Ten Mile Plan, making certain findings and establishing the Ten Mile revenue allocation area (the `Ten Mile Project Area); WHEREAS, the City Council, after notice duly published, conducted a public hearing on the First Amendment to the Meridian Revitalization Plan Urban Renewal Project (the "First Amendment to the Downtown District Plan"); WHEREAS, following said public hearing, the City Council adopted its Ordinance No. 20-1881 on June 9, 2020, approving the First Amendment to the Downtown District Plan deannexing certain parcels and making certain findings; WHEREAS, the City Council, after notice duly published, conducted a public hearing on the Union District Urban Renewal Project (the "Union District Plan"); WHEREAS, following said public hearing, the City Council adopted its Ordinance No. 20-1882 on June 9, 2020, approving the Union District Plan, making certain findings, and establishing the Union District revenue allocation area (the "Union District Project Area"); WHEREAS, the City Council, after notice duly published, conducted a public hearing on the Second Amendment to the Meridian Revitalization Plan Urban Renewal Project (the "Second Amendment to the Downtown District Plan"); WHEREAS, following said public hearing, the City Council adopted its Ordinance No. 21-1933 on July 13, 2021, approving the Second Amendment to the Downtown District Plan deannexing certain parcels and making certain findings (collectively, the Downtown District Plan, and amendments thereto, are referred to as the "Existing Downtown District Plan," and the Downtown District Project Area, and amendments thereto, are referred to as the "Existing Downtown District Project Area"); WHEREAS, the Existing Downtown District Plan, the Ten Mile Plan, and the Union District Plan are collectively referred to as the "Existing Urban Renewal Plans" and their respective revenue allocation project areas are collectively referred to as the "Existing Project Areas;" WHEREAS, pursuant to Idaho Code Section 50-2008, an urban renewal project may not be planned or initiated unless the local governing body has, by resolution, determined such area to be a deteriorated area or deteriorating area, or combination thereof, and designated such area as appropriate for an urban renewal project; WHEREAS, Idaho Code Section 50-2906, also requires that in order to adopt an urban renewal plan containing a revenue allocation financing provision, the local RESOLUTION NO. 21-037 - 2 governing body must make a finding or determination that the area included in such plan is a deteriorated area or deteriorating area; WHEREAS, based on inquiries and information presented by certain public entities, certain interested parties and property owners, MDC commenced certain discussions concerning examination of an area, most of which is located within the City, and a portion of which is located within the City's area of operation within unincorporated Ada County and subject to a pending voluntary annexation into the City, may be deteriorating or deteriorated and should be examined as to whether such an area is eligible for an urban renewal project; WHEREAS, in 2021, MDC authorized Kushlan I Associates to commence an eligibility study and preparation of an eligibility report for an area 126.226 acres in size, approximately 77 acres of which was deannexed from the boundaries of the Downtown District Project Area. The area is generally located in the central part of Meridian, northeast of the City's downtown core, and east of Meridian Road and south of Fairview Avenue extending to Pine Avenue between NE 2nd Street and E. 3rd Street, and which area also includes a commercial area east of Meridian Road fronting Fairview Avenue on the north and a 17.64-acre parcel located on the northwest corner of Meridian Road and Cherry Lane. The eligibility study area is commonly referred to as the Northern Gateway District Study Area (the "Study Area"); WHEREAS, MDC obtained an eligibility report entitled Northern Gateway Urban Renewal District (Proposed) Eligibility Report, dated May 2021 (the "Report"), which examined the Study Area, which area also included real property located within unincorporated Ada County that is currently subject to a pending voluntary annexation, for the purpose of determining whether such area was a deteriorating area, a deteriorated area, or a combination of both a deteriorating area and a deteriorated area, as those terms are defined by Idaho Code Sections 50-2018(8), (9) and 50-2903(8); WHEREAS, pursuant to Idaho Code Sections 50-2018(8), (9) and 50-2903(8), which define the qualifying conditions of a deteriorating area and a deteriorated area, several of the conditions necessary to be present in such an area are found in the Study Area, i.e., a. the presence of a substantial number of deteriorated or deteriorating structures; and deterioration of site; b. age or obsolescence; G. the predominance of defective or inadequate street layout; d. faulty lot layout in relation to size, adequacy, accessibility, or usefulness; obsolete platting; e. insanitary or unsafe conditions; and f. diversity of ownership; WHEREAS, the Study Area contains open land; WHEREAS, under the Act a deteriorated area includes any area which is predominantly open and which, because of obsolete platting, diversity of ownership, deterioration of structures or improvements, or otherwise, results in economic RESOLUTION NO. 21-037 - 3 underdevelopment of the area or substantially impairs or arrests the sound growth of a municipality. See, Idaho Code § 50-2903(8)(c); WHEREAS, Idaho Code Sections 50-2018(9), 50-2903(8) and 50-2008(d) list the additional conditions applicable to open land or open areas, including open land areas to be acquired by MDC, which are the same or similar to the conditions set forth in the definitions of"deteriorating area" and "deteriorated area;" WHEREAS, the Study Area is not "predominantly" open; however, the Report addresses the necessary findings concerning including open land within any urban renewal area as defined in Idaho Code Sections 50-2018(9), 50-2903(8)(c), and 50- 2008(d); WHEREAS, the effects of the listed conditions cited in the Report result in economic underdevelopment of the area, substantially impairs or arrests the sound growth of a municipality, constitutes an economic or social liability, and is a menace to the public health, safety, morals, or welfare in its present condition or use; WHEREAS, the MDC Board, on June 9, 2021, adopted Resolution No. 21-026, accepting the Report and authorized the Chair, Vice-Chair, or Administrator of MDC to transmit the Report to the City Council requesting its consideration for designation of an urban renewal area and requesting the City Council to direct MDC to prepare an urban renewal plan for the Study Area, which plan may include a revenue allocation provision as allowed by the Act; WHEREAS, the City Council on July 6, 2021, adopted Resolution No. 21-2273, declared the Study Area described in the Report to be a deteriorated area or a deteriorating area, or a combination thereof, as defined by Chapters 20 and 29 of Title 50, Idaho Code, as amended, that such Study Area is appropriate for an urban renewal project, and directed MDC to commence preparation of an urban renewal plan for the area designated; WHEREAS, MDC has embarked on an urban renewal project referred to as the (Option B) Urban Renewal Plan for the Northern Gateway District Urban Renewal Project (the "Northern Gateway District Plan") to redevelop a portion of the City, pursuant to the Law and the Act, as amended; WHEREAS, the Northern Gateway District proposes to create an urban renewal area commonly known as the Northern Gateway District Project Area, which area is shown on the "Boundary Map of Northern Gateway District Urban Renewal Project Area and Revenue Allocation Area" and described in the "Legal Description of Northern Gateway District Urban Renewal Project Area and Revenue Allocation Area," which are attached to the Northern Gateway District Plan as Attachments 1 and 2 respectively; WHEREAS, the Northern Gateway District Project Area is smaller than the Study Area as the 17.64-acre parcel located on the northwest corner of Meridian Road and Cherry Lane and currently located within unincorporated Ada County is not included; RESOLUTION NO. 21-037 -4 WHEREAS, under the Law and Act, Idaho Code Sections 50-2903(8)(f) and 50- 2018(8) and (9), the definition of a deteriorating area shall not apply to any agricultural operation as defined in Section 22-4502(2), Idaho Code, absent the consent of the owner of the agricultural operation except for an agricultural operation that has not been used for three (3) consecutive years; WHEREAS, the Northern Gateway District Project Area does not include any parcels subject to such consent; WHEREAS, in order to implement the provisions of the Act and the Law either MDC may prepare a plan, or any person, public or private, may submit such plan to MDC; WHEREAS, MDC and its consultants have prepared the proposed Northern Gateway District Plan for the area previously designated as eligible for urban renewal planning; WHEREAS, the Act authorizes MDC to adopt revenue allocation financing provisions as part of an urban renewal plan; WHEREAS, the Northern Gateway District Plan contains revenue allocation financing provisions as allowed by the Act; WHEREAS, in order to implement the provisions of the Law and the Act, MDC shall prepare and adopt the Northern Gateway District Plan and submit the Northern Gateway District Plan and recommendation for approval thereof to the City; WHEREAS, MDC reviewed and considered the proposed public improvements within the Northern Gateway District Plan during a joint meeting with the City Council on August 24, 2021; WHEREAS, as required by the Law and the Act, MDC has reviewed the information within the Northern Gateway District Plan concerning the use of revenue allocation funds and approved such information and considered the Northern Gateway District Plan at several MDC Board meetings in 2021, including at its meeting on September 22, 2021; WHEREAS, the Northern Gateway District Plan will be tendered to the Planning and Zoning Commission and to the City Council for their consideration and review as required by the Law and the Act; WHEREAS, under the Act, the Northern Gateway District Plan shall include with specificity the following: (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 RESOLUTION NO. 21-037 - 5 and after the bonds are repaid, upon all taxing districts levying taxes upon property in the revenue allocation area; and (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 Idaho Code § 50-2903(20); and (8) a description of the disposition or retention of any assets of the agency upon the termination date; WHEREAS, it is necessary and in the best interests of the citizens of the City to recommend approval of the Northern Gateway District Plan and to adopt, as part of the Northern Gateway District Plan, revenue allocation financing provisions that will help finance urban renewal projects to be completed in accordance with the Northern Gateway District Plan in order to (1) encourage private development in the urban renewal area; (2) to prevent and arrest decay of the Northern Gateway District Plan due to the inability of existing financing methods to provide needed public improvements; (3) to encourage taxing districts to cooperate in the allocation of future tax revenues arising in the Northern Gateway District Plan in order to facilitate the long-term growth of their common tax base; (4) to encourage the long-term growth of their common tax base; (5) to encourage private investment within the City and (6) to further the public purposes of MDC; WHEREAS, the MDC Board finds that the equalized assessed valuation of the taxable property in the revenue allocation area described in Attachments 1 and 2 of the Northern Gateway District Plan is likely to increase as a result of initiation of urban renewal projects in accordance with the Northern Gateway District Plan; WHEREAS, under the Law and Act, any such plan should provide for (1) a feasible method 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 should conform to the general plan of the municipality as a whole; (3) the urban renewal plan should give 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 the children residing in the general vicinity of the site covered by the plan; and (4) the urban renewal plan should 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; WHEREAS, 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 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 RESOLUTION NO. 21-037 - 6 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; WHEREAS, the base assessment roll of the Northern Gateway District Plan, together with the base assessment roll values of the Existing Project Areas, and the proposed First Amendment to the Union District Project Area and the proposed Linder District Project Area, cannot exceed ten percent (10%) of the current assessed values of all the taxable property in the City; WHEREAS, the boundaries of the Northern Gateway District Project Area overlap the boundaries of the Ada County Highway District, which has the responsibility for the maintenance of roads and highways within the City. MDC is currently negotiating an agreement with the Ada County Highway District pursuant to Idaho Code Section 50-2908(2)(a)(iv) for the Northern Gateway District Project Area; WHEREAS, MDC staff and consultants recommend the MDC Board accept the Northern Gateway District Plan and forward it to the City Council; WHEREAS, the MDC Board finds it in the best interests of MDC and the public to formally adopt the Northern Gateway District Plan, as set forth in Exhibit 1 attached hereto, and to forward it to the Mayor and City Council, and recommend its adoption, subject to certain conditions. NOW, THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF MERIDIAN, IDAHO, AS FOLLOWS: Section 1. That the above statements are true and correct. Section 2. It is hereby found and determined that the Northern Gateway District Project Area as defined in the Northern Gateway District Plan is a deteriorated area, a deteriorating area, or a combination thereof, as defined in the Law and the Act and qualifies as an eligible urban renewal area under the Law. Section 3. That MDC specifically adopts the Northern Gateway District Plan along with any changes discussed at the September 22, 2021, MDC Board meeting, including but not limited to finalization of the Attachments to the Northern Gateway District Plan, confirmation of levy rates, confirmation of the affected taxing districts, updated list of projects, estimated location or siting of improvements, updated map or legal description and any modifications to the economic feasibility study prepared by MDC consultant Kushlan I Associates. RESOLUTION NO. 21-037 - 7 Section 4. That MDC recommends that the Northern Gateway District Plan, a copy of which is attached hereto as Exhibit 1, and incorporated herein by reference, be adopted by the City Council, including those sections, modifications, text, and/or replacement of Attachments as discussed at the September 22, 2021, MDC Board meeting. Section 5. That this Resolution constitutes the necessary action of MDC under the Act, Idaho Code § 50-2905, recommending approval by the City and that the Northern Gateway District Plan includes with specificity the following: (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 in the revenue allocation area; and (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 Idaho Code § 50-2903(20); and (8) a description of the disposition or retention of any assets of the agency upon the termination date. Section 6. It is hereby found and determined that: (a) The Northern Gateway District Plan gives due consideration to the provision of adequate park and recreation areas and facilities that may be desirable for neighborhood improvement (recognizing the mixed-use residential and commercial components of the Northern Gateway District Plan and the need for public improvements), and shows consideration for the health, safety, and welfare of any residents or businesses in the general vicinity of the urban renewal area covered by the Northern Gateway District Plan. (b) The Northern Gateway District Plan affords maximum opportunity consistent with the sound needs of the City as a whole for the rehabilitation, development, and redevelopment of the Northern Gateway District Project Area by private enterprises. (c) The Northern Gateway District Plan provides a feasible method for relocation of any displaced families residing within the Northern Gateway District Project Area. (d) The Northern Gateway District Project Area contains areas, which may be considered "open land" areas, that MDC may acquire any open land, that the Northern Gateway District Project Area is planned to be redeveloped in a manner that may include both RESOLUTION NO. 21-037 - 8 residential and non-residential uses and that the "open land" criteria set forth in the Law and Act have been met. (e) The portion of the area added by the Northern Gateway District Plan which may be identified for residential uses is necessary and appropriate as the City Council may find 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 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 City. (f) The portion of the area added by the Northern Gateway District Plan which may be identified for non-residential uses, the City Council may find is necessary and appropriate to facilitate the proper growth and development standards in accordance with the objectives of the Comprehensive Plan to overcome economic disuse, the need for improved traffic patterns and the need for the correlation of this area with other areas of the City. (g) The base assessment roll of the Northern Gateway District Project Area, together with the base assessment roll values of the Existing Project Areas, and the proposed First Amendment to the Union District Project Area and the proposed Linder District Project Area, do not exceed ten percent (10%) of the current assessed values of all the taxable property in the City. (h) The Northern Gateway District Plan includes a revenue allocation provision and MDC has determined that the equalized assessed valuation of the revenue allocation area will likely increase as the result of the initiation of an urban renewal project. Section 7. That this Resolution constitutes the necessary action of MDC under the Law, Section 50-2008, Idaho Code, and the Act. Section 8. The Chair, Vice-Chair, or Administrator, and the Secretary of MDC are hereby authorized and directed to take all steps necessary and convenient to submit the proposed Northern Gateway District Plan for approval by the City Council, including but not limited to the preparation of the notice of public hearing on adoption of the revenue allocation financing provisions by the City and submittal of the Northern Gateway District Plan to the various taxing entities as required by Idaho Code § 50- 2906. RESOLUTION NO. 21-037 - 9 Section 9. That this Resolution shall be in full force and effect immediately upon its adoption and approval. PASSED by the Urban Renewal Agency of Meridian, Idaho, on September 22, 2021. Signed by the Chair of the Board of Commissioners and attested by the Secretary to the Board of Commissioners, on September 22, 2021. APPROVED: By Chair of the Board ATTEST: ByzA I ;a- 'c� S cretary RESOLUTION NO. 21-037 - 10 Exhibit 1 The Urban Renewal Plan for the Northern Gateway District Urban Renewal Project 4850-3179-2890,v.2 RESOLUTION NO. 21-037 - 11