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PZ-21-06 First Amendment to the Union District Urban Renewal Project Mayor Robert E. Simison E IDIA N� Treg BeCity Council Members: rnt Brad Hoaglun Joe Borton Jessica Perreault H O Luke Cavener Liz Strader TRANSMITTAL MEMO FOR PZ-04, PZ-05, PZ-06 TO: Meridian Planning & Zoning Commission DATE: October 7, 2021 FROM: Ted Baird, Deputy City Attorney Kurt Starman, Deputy City Attorney RE: Resolutions for October 7, 2021 Agenda On your agenda there are three resolutions for your consideration. The task before the commission is to consider whether the proposed Urban Renewal Projects are consistent with Meridian's Comprehensive Plan. AGENDA Items 3 & 4: The first two Resolutions (PZ-21-04 and PZ-21-05)both relate to the Northern Gateway District Urban Renewal Project. The only difference is that Option A includes a large 17-acre parcel north and west of the corner of Meridian Road and Cherry Lane (the "McFadden Property"). Option B does not include the McFadden Property. The analysis is similar for both Options A & B—in fact the Memorandum attached as Exhibit A to each of these two Resolutions is identical, and the differences between the Options A &B are discussed in the Memorandum. By the time this matter gets to the City Council for consideration, one of the options will become the clear choice for moving forward, but in order to comply with Idaho Code Section 50-2008(b) and to move this matter forward, the Planning and Zoning Commission will review both Option A and Option B for conformity with the Comprehensive Plan tonight. Staff is recommending that the Commission move to approve the Resolutions associated with BOTH Options A and B, identifying the proposed Gateway Plans as conforming to the City of Meridian's Comprehensive Plan. AGENDA item#5 Resolution PZ-21-06 pertains to the proposed annexation of 1.46 acres to the existing Union District Urban Renewal Project. Staff recommends that the Commission move to approve the associated Resolution identifying the proposed First Amendment to the Union District Urban Renewal Project as conforming to the City of Meridian's Comprehensive Plan. For additional information and analysis,please refer to the September 30, 2021 Planning Division Memoranda, which are identified as exhibits to the Resolutions. City of Meridian . 33 E. Broadway Avenue . Meridian, ID 83642 Phone 208-888-4433 . www.meridiancity.org PZ-21-06 CITY OF MERIDIAN BY THE PLANNING AND ZONING COMMISSION A RESOLUTION OF THE PLANNING AND ZONING COMMISSION FOR THE CITY OF MERIDIAN, IDAHO,VALIDATING CONFORMITY OF THE FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT URBAN RENEWAL PROJECT WITH THE CITY OF MERIDIAN'S COMPREHENSIVE PLAN WHEREAS, the Urban Renewal Agency of the City of Meridian(the "City"), Idaho, also known as Meridian Development Corporation (hereinafter"MDC"), the duly constituted and authorized urban renewal agency of the City, has submitted the proposed First Amendment to the Urban Renewal Plan for the Union District Urban Renewal Project(the"First Amendment") to the City; and WHEREAS, the Mayor and Meridian City Council referred the First Amendment to the City Planning and Zoning Commission for review and recommendations concerning the conformity of said First Amendment with the City's Comprehensive Plan, as amended(the "Comprehensive Plan"); and WHEREAS, on October 7, 2021, the City Planning and Zoning Commission met to consider whether the First Amendment conforms with the Comprehensive Plan as required by Idaho Code § 50-2008(b); and WHEREAS, the City Planning and Zoning Commission has reviewed said First Amendment in view of the Comprehensive Plan; and WHEREAS, the City Planning and Zoning Commission has determined that the First Amendment is in all respects in conformity with the Comprehensive Plan. NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING AND ZONING COMMISSION FOR THE CITY OF MERIDIAN, IDAHO: Section 1. That the First Amendment, submitted by MDC and referred to this Commission by the Mayor and City Council for review, is in all respects in conformity with the City's Comprehensive Plan. Section 2. That Exhibit A, the memorandum from Brian McClure, Comprehensive Associate Planner dated September 30, 2021, outlining the analysis supporting the determination that the First Amendment is in conformity with the City's Comprehensive Plan, is hereby adopted and incorporated as part of this Resolution. Section 3. That the City Clerk is hereby authorized and directed to provide the Mayor and Meridian City Council with a signed copy of this Resolution relating to said First Amendment. PZ-21-06 Section 4. That this Resolution shall be in full force and effect immediately upon its adoption and approval. ADOPTED by the Planning and Zoning Commission of the City of Meridian, Idaho, this 7th day of October 2021. APPROVED: ATTEST: Chair, Planning and Zoning Commission City Clerk Chris Johnson 10-07-2021 4810-4341-8296,v. 1 Item 5. Mayor Robert E. SimisonEl E IDIANT City Council Members: ram/ Treg Bernt Brad Hoaglun Joe Borton Jessica Perreauit I A H O Luke Cavener Liz Strader EXHIBIT A TO PZ-21-06 (1st Amendment to Union District) September 30, 2021 MEMORANDUM TO: Mayor Robert Simison Meridian City Council Meridian Planning & Zoning Commission CC: David Miles, Chief of Staff Cameron Arial, Community Development Director Victoria Cleary, Economic Development Administrator Caleb Hood, Planning Division Manager FROM: Brian McClure, Comprehensive Associate Planner RE: First Amendment to the Urban Renewal Plan for the Union District Urban Renewal Project This memo is intended to confirm consistency of the City's Comprehensive Plan with the proposed amendment to the Union District Urban Renewal Plan. The proposed Union District plan amendment(Plan Amendment) is to annex an additional 1.46 acres into the existing Union District boundary. The amendment language indicates that there are no substantive changes to the Union District(District), other than to generally update facts and figures based on or derived from the new total District physical area. This memo assumes that Comprehensive Plan analysis in 2020, for the original District, is still applicable and current for the following reasons: • no vertical construction has occurred within the Union District(District); • no appreciable changes to taxable revenue as a result of development have occurred; Community Development Department . 33 E. Broadway Avenue, Suite 102, Meridian, ID 83642 Phone 208-884-5533 - Fax 208-888-6854 . www.meridiancity.org Item 5. F338] • no new projects types outside of the original District plan are proposed in the Plan Amendment; • the originally described activities and projects are still valid and may support efforts to reach the desired vision of the Comprehensive Plan; and • no amendments to the Comprehensive Plan have been approved which influence land use decisions or development review. Additionally, the proposed annexation is relatively small at 1.46 acres. The Plan Amendment area includes 11 parcels, two of which are extraordinarily narrow strips (totaling 0.005 acres or 217 square-feet), and three of which are vacant(0.250 acres). Additionally, 0.407 acres are public right-of-way which include a portion of Idaho Ave and the east-west mid-block alley. Of the 11 parcels (9 functional), there are 5 primary owners. There are 4 primary owners of existing buildings, some of which are divided into smaller tenant spaces. Recommendation Based on the activities in the original Union District and limited scope of the annexation, Staff believes establishing this annexation may be an effective tool in implementing the City of Meridian Comprehensive Plan. Accordingly, Staff recommends that the Commission move to approve the associated Resolution identifying the proposed First Amendment to the Urban Renewal Plan for the Union District Urban Renewal Project, as conforming to the City of Meridian's Comprehensive Plan. General Comprehensive Plan Analysis While the Union District annexation is limited in scope, the following text describes general applicable policies that should be considered with future activities and development. This analysis is in consideration of future needs, concerns, and activities, and how the annexed area of the Union District may fit within a broader context, but not of the proposed amendment and annexation itself. The following analysis is narrowed to the amendment only, and not the broader Union District. For context, the Union District amended description of principles states, 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 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. The Plan Amendment includes other updates to text and attachments of the original Plan. Where the original Union District was clearly intended to make use of tax increment financing (TIF) to address new and well-defined opportunities, such as development of the former Union Pacific property, this annexation is less clear. The stated amendment principles are admirable, but it is not clear why the original downtown Urban Renewal District did not previously address the 2 Item 5. F339] same identified short-comings prior to de-annexation. Further, it is unclear what circumstances have changed in the context of the described issues, or what specific public participation may be necessary to address identified short-comings in the context of new opportunities. While the area proposed for inclusion in the Union District is small in geographic area, the purpose for inclusion is not evident. Regardless, no specific development is proposed and the general list of principles and activities are generally desired by the Comprehensive Plan. This annexation into the Union District is a new opportunity to correct historical deficiencies within a defining block of Downtown. Plan Text The Evolving Community section(Chapter 3) of the Comprehensive Plan, defines future land use typologies. The only land use designation in this area is Old Town: This designation includes the historic downtown and the true community center. The boundary of the Old Town district predominantly follows Meridian's historic plat boundaries. In several areas, both sides of a street were incorporated into the boundary to encourage similar uses and complimentary design of the facing houses and buildings. Sample uses include offices, retail and lodging, theatres, restaurants, and service retail for surrounding residents and visitors. A variety of residential uses are also envisioned and could include reuse of existing buildings, new construction of multi family residential over ground floor retail or office uses. The City has developed specific architectural standards for Old Town and other traditional neighborhood areas. Pedestrian amenities are emphasized in Old Town via streetscape standards. Additional public and quasi public amenities and outdoor gathering area are encouraged. Future planning in Old Town will be reviewed in accordance with Destination Downtown, a visioning document for redevelopment in Downtown Meridian. Please see Chapter 2 Premier Community for more information on Destination Downtown. Sample zoning include O-T. The Old Town future land use is the most diverse designation in the City's land use portfolio. It has the greatest combined range of residential and non-residential uses and no caps on density or intensity of developed uses. Further, the City's complimentary zoning, also named Old Town(O- T), has zero setbacks for structures, reduced parking requirements, and reduced landscape setbacks aside from pedestrian streetscape infrastructure. All parcels in the proposed amendment boundary are already zoned O-T. Plan Policies The following text reference policies that are applicable to the proposed Plan Amendment text. The first number of a policy ID references the Chapter. • 2.02.02C, Support infill development that does not negatively impact the abutting, existing development. Infill projects in Downtown should develop at higher densities, irrespective of existing development. Neither the original District plan or this Plan Amendment are clear in how redevelopment may be respectful of existing development. Public participation may however be able to 3 Item 5. ■ greatly mitigate private development impacts. The Plan Amendment describes a thorough list of public improvements that may help to offset costly redevelopment, and both the Plan Amendment and the original District plan indicate opportunities for the Meridian Development Corporation to negotiate additional standards along with public participation. • 2.09.01B, Establish incentives to develop gathering spaces and civic facilities within Downtown. The Plan Amendment lists a number of public improvements that could improve public spaces, including community facilities and streetscape enhancements. These types of improvements would likely require public private projects due to the cost, size, and location within public right-of-way and given the limited size of the Plan Amendment area. • 2.09.02A, Actively implement action items in the Destination Downtown Plan. Destination Downtown was created by the Meridian Development Corporation for the original downtown Urban Renewal District (URD), and adopted by the City. This plan was extremely broad in land use diversity, area, and scope. Within Destination Downtown, the relevant area in the Plan Amendment is entirely within the Traditional City Core area. This area is focused on traditional architecture themes, construction between 2 and 4 stories, continuous urban edge, vertical integration, and diversity of uses. With the existing downtown URD set to expire in the coming years, the Plan amendment is an opportunity for more renewed and focused efforts, both geographically and in implementation activities. • 2.09.02B, Pursue grants and public-private partnerships to enhance Downtown. Continuation of TIF funding could both provide grants and make more competitive applications for grants, by utilizing a dedicated funding source. • 2.09.02G, Implement the City of Meridian Design Standards and City of Meridian Architectural Standards Manual to ensure that Downtown remains the historic center for mixed-use tourism,business, retail, residential, and governmental activities. This policy is not directly related to the Plan Amendment, but warrants re-review due to recent decisions and concerns elsewhere in the Union District and larger Downtown area. The City has land use authority over the project area and implementation of design and architectural standards must be met. However, these standards while allowing for the full range of uses described within the original District plan, does not necessarily cater to or encourage them in a context or towards any purpose. Neither the original District plan or the Plan Amendment describe historical context as something to preserve or build upon, but it is central to the Destination Downtown plan, and more specifically the Traditional City Core. Additional work is necessary if downtown specific and historical context are desired. • 3.03.01E, Encourage infill development. The unstated purpose of both the original District plan and the Plan Amendment, through virtually all of the goals,principles, and implementation strategies, is to encourage infill and greater density through redevelopment. • 3.03.03G, Require urban infrastructure be provided for all new developments, including curb and gutter, sidewalks, water and sewer utilities. The City has land use authority over the project area and urban infrastructure will be required with all redevelopment. Further, the Plan Amendment calls out specific 4 Item 5. E implementation strategies including road, curb, gutter, streetscape, lighting, stormwater, and others. • 5.02.01A, Maintain and implement design and building standards for historically significant buildings and resources in Old Town. As noted in policy 2.09.02G, the Plan Amendment does not emphasize consideration for the historic character and quality of the overall Downtown area. If this element is important, then standards are needed to protect and/or enhance the general area character. Currently, the City cannot enforce consideration of historic elements or general thematic qualities with administrative level approvals. In Old-Town, this includes multi family permits and multi-story buildings. Referenced Plans The following plans are adopted by reference in the City of Meridian Comprehensive Plan, and are relevant material to the proposed Plan Amendment. • Downtown Meridian Street Cross-section Master Plan The Cross-section most specific for the Plan Amendment is Idaho Ave, where half of the street is included in the annexation area. Other bordering streets including Main, 2-112, and Broadway, and are either already in the Union District, or excluded. The applicable cross- sections are included as Attachment B. Because the Plan Amendment area does not take in the entire right-of-way of Idaho Ave, it is likely that a public public partnership will be required to make improvements. Alternatively, improvements could wait until after the road is resurfaced by ACHD (reducing the crown and correcting drainage), or to constrain improvements to behind the existing curb. A significant number of stakeholders have changed since the original cross-section was adopted. Regardless of the final cross-section, an innovative design may be desired to increase placemaking opportunities and awareness of the block. • Historic Preservation Plan The Historic Preservation Commission and City adopted the Historic Preservation Plan in 2014. Several goals from the plan are relevant to the Union District Plan, including: o Goal I Preserve and enhance Meridian's historical, cultural and agricultural heritage. o Goal 3 Heighten public awareness of historic preservation in the community and improve preservation education efforts for various audiences. o Goal 4 Maintain and strengthen support for historic preservation from individuals, commercial property owners, local organizations and neighborhood groups. These goals for the Commission (and City) are not just about preserving, but also enhancing and generating awareness ofMeridian's history. Additional objectives for these goals are described within the plan. Since areas of the Plan Amendment are near to historic structures and sites, awareness and care of both public and private efforts is important. These plans are available on the City's Comprehensive Plan website at: hltps:Hmeridiancit. .or lannin /g coMpplan/resources. 5 Item 5. F 42 Attachment A: Union District (Urban Renewal District) Future Land Use Civic Old Town E PINE A'VE I o I z N z y IL]— = Q - - - — ■ - ■uau I W4M E IDAHO AVE W z z � y a I 4 � I r, - — E BROADWAY-AVE z :7 � F I Z I zLegend in I MIL Annexation Area N z Q Union District rn 0 Parcels A ld �o o -■— Railroad z 0 y z N h 0 200 40Feet 6 Item 5. F 43 Attachment B: Downtown Meridian Street Cross-section Master Plan Examples Idaho Avenue CORRIDOR: Idaho Avenue •• = and families interested in more urban and pedestrian Idaho is an iconic downtown corridor in Meridian, friendly environment. providing connectivity to Generations Plaza,Certain- Idaho due to its location within downtown,the con- nial Park,and the Meridian Community Center.This nectivity of the local roadway network,and its prox- street also provides primary access for a number of unit to several key community resources,provides a ° - Y Y Y P ="LTON Avg popular shops and services between Main and East framework for the corridor to act as a centerpiece of 2nd.Similarly to Broadway,Idaho is important foreast- vibrancy and activity.Moving forward it should con- west connectivity,and with the exception of Pine,is tinue to host events,activities,and provide exciting _ significantly longerthan every other east-west corridor opportunities for a variety of businesses and uses. A E In downtown.Currently,Idaho extends between West The proposed cross-sections for]daho establish this 6th and approximately East6th.Inthefuture,Idahomay framework. be extended further east to Locust,though Broadway _ Is the preferred alignment extension. Idaho currently serves the Traditional City Core(TCC) district and both of the Neighborhood Preservation — G Areas(NPA)within the urban renewal area.The TCC N ° h district supports greater densities of mixed usedevel- a 1LJEwdr fY opment,iconic to traditional downtowns.The NPA are £ £ intended to preserve historic housing,promote resi- D-we, seavein, onboms id-ofinestreet,heavy...face parking,nastyinfra. dentialinfill,andprovidealocalbaseofresidentsto AnAsr andgovernmento Mpmperglnnits—Wy,—p.,.fidzhobe,--Merfdr—Road participate in events,frequent restaurants and shops, and Main.With the exception of sunrise cafeand the Hanage Building,there are limited-kiang andto provide residential opportunities for individuals usesnnthis segmeneofl&hov.rd,d.il,- munaydr i—thedownwwnarea. � s SIDEWALK CLOSED Looking west along Idaho,kt—Meddlen and Mala- f,I �'" zwuun E 3rd and E d. - DOWNTOWN MERIDIAN CITY CORE STREET CRO 55-5 ECTI ON MASTER PLAN v STREET DESIGN 7 Item 5. F 44 IDAHO AVENUE: Main Street to East 2nd Street E {4iZ oo racing East} EResign is has,R auto to Preserrau,n a m { o', of eclsting RRV1. _ S v r Parking fir Sidewalks r PathwuP Strestsnape Ruffar 1 m r Ping Perkwap Ratter z r Furniture v �' = nv, r u9rr,9 2 Nop rad,.i ' - z F F W Existing edge of ROIV &isting edge of RRW Qon s7 piol l,n Wtrvista CLnfgnadfrnrien) -9' Wb CI Pedeanian — and aesthetic enhancements such a5 street furnishings,way IMPLEMENTATION PROCESS: Main Street to 1 a f 2rod Street finding,and banners.Parking is important,but considered Because a rebuild of this street is a total re-configuration secondary to unique place-making opportunities which that calls for removal of curbs,relocation of all trees,and CON segment ofI allowfor both safe pedestrian facilities and business uses. Cross-section fY dtk 80-foetfRCW1 go hot P changes to finished grade,this street segment should This segment of Idaho between Main and East end is be reconstructed all at once.Curbs may be included,but Nag to-wa i,c-wap DESCRIPTION OF ULTIMATE CONDITIONS: Y the definitively classic downtown street.Businesses are Parking Parallel Thoth sldeel Perpeodlralar fine-eldel reduce emphasis on the pedestrian.Full closure is likely a traditional downtown mix of restaurants,shops,and Due to the central location and importance ofldahothis unnecessary aselements maystill be phased.This mot l- Parking CnPoaay' IR 21 services,the buildings are older,and the street is spatially street uses a unique cross-section to address parking con- opment project is envisioned to occur as a public-private Waikwioa lea.rldrl 4tr 5-fart IN to 14-feet constrained.The streetscape is important for pedestrian siderations while maximizing the pedestrian environment. or public-public partnerships.In the interim,maintenance Ruffer(ea.aida) Varieu Varies connectivity;sharing a special connection with Main Street Parallel parking which currentlyexists can both sides ofthe should continue to occurand efforts madeto ensure safe Pathway Nano Nan. and Generations Plaza,and connecting to both the Merid- street has been relocated and converted to perpendicular conditions of existing walkways and other improvements. Rikn Sn t Rano N ian Community Center and Centennial Park. parking on the north side.Existing curb cuts for a park- Pear ann The unique design of this street will require further con- «parkin Im acts and future values ere estimate s.do not iodlcate interior ing lot on the south side of the street,currently serving g o INTENT[ Aerations,additional refinement,and coordination with Front,lrns.andassum a tulle naplaloe,with cross Setlon.Rrlc,w,7a.fin hy er a bank,greatly reduces the effectiveness of on-street ACHD. drante.and other naoaitlaua map altar Final nuant.See Parklog a„tlao under This cross-section is intended to enhance the streetscape parallel parking configurations and parking availability Street0esign. and provide greater opportunities for pedestrian and busi- for other businesses.Without dedicated turn lanes at ness use.The priority improvements with this cross section intersections and because the street corridor does not are pedestrian safety,creating greater opportunities for serve as throughway,drive speeds are envisioned to be businesses streetscape presence(such as outdoor dining), slower with limited impacts to safety by back out parking. DOWNTOWN MERIDIAN CITY CORE STREET CROSS-5ECTION MASTER PLAN STREET DESIGN 8 Item 5. F 45 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 URBAN RENEWAL PROJECT- 1 Item 5. F346] 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 Union District Project Area and is less than ten percent (10%) of the existing revenue allocation area, which is 15.86 acres. 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 Union District 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 URBAN RENEWAL PROJECT- 2 Item 5. F347] 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 Area 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 URBAN RENEWAL PROJECT- 3 Item 5. F348] 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 IA, 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. 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 Idaho Block 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 Plan and Project Area in 2021 pursuant to the Second Amendment to the Meridian Revitalization Plan. 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 FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT URBAN RENEWAL PROJECT-4 Item 5. F349] 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. 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 City's Comprehensive Plan. Pursuant to the Law and Act,the City Council,having published due notice thereof,held a public hearing on the First Amendment. Notice of the hearing was duly published in the Idaho Press, 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. In Section 103, the term "Project Area" is now replaced with the term"Amended Project Area." 7. Amendment to Section 103 of the Plan. Section 103 of the Plan is amended by the addition of new Section 103.1 entitled"History and Current Conditions of the Expansion Area" 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, retail, office, commercial, and residential, FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT URBAN RENEWAL PROJECT- 5 Item 5. F350] projects, as well as, fagade improvements,planning studies and installation and improvements to other public facilities, including, but not limited to, streets, streetscapes, water and sewer improvements, environmental and floodplain remediation/site preparation, public parking, other community facilities, parks, plazas, open space, and pedestrian/bike 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 in relation to size, adequacy, accessibility or usefulness, obsolete platting, and diversity of ownership. The foregoing conditions have resulted in economic underdevelopment of the expansion area and has arrested or impaired growth in the expansion area. The preparation and approval of an urban renewal plan amendment including a revenue allocation financing provision,gives the City additional resources to solve the public infrastructure problems in this area. Revenue allocation financing should help to improve the situation. In effect,property taxes generated by new developments within the Amended 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. It is unlikely individual developers will take on the prohibitive costs of constructing the necessary infrastructure in the expansion 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 commercial, office, residential and related public improvements would not occur. 8. 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." FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT URBAN RENEWAL PROJECT- 6 Item 5. F351] 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. 9. 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: X. The provision of financial and other assistance to encourage and support the Agency's fagade improvement program C. Section 301 is amended by adding a new subsection(y) as follows: Y. The funding in whole, or in part,any planning studies within the Amended Project Area. 10. Amendment to Section 302 of the Plan. Section 302 is amended by deleting the first paragraph and replacing it as follows: Urban renewal activity is necessary in the Amended Project Area to combat problems of physical deterioration or deteriorating conditions. As set forth in greater detail in Sections 103 and 103.1, the Amended Project Area has a history of stagnant growth and development compared to the greater downtown area of the City based on deteriorated or deteriorating conditions that have arrested or impaired growth in the Amended Project Area primarily attributed to: underdeveloped properties; inadequate pedestrian and bicycle connectivity and mobility; the presence of a substantial number of deteriorating structures; deterioration of site; age and obsolescence; a predominance of defective or inadequate street layout; faulty lot layout in relation to size, adequacy, accessibility or usefulness; unsanitary or unsafe conditions; diversity of ownership; and defective or very unusual conditions of title. The Plan for the Amended Project Area is a proposal to work in partnership with public and private entities to improve, develop, and grow the economy within the Amended Project Area by the implementation of a strategy and program set forth in Section 301, as amended. FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT URBAN RENEWAL PROJECT- 7 Item 5. F352] 11. 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 5 incorporated estimates and projections based on the Agency's and the consultants' knowledge and expectations at that time. 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.' 12. 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 for the original Project Area. 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. Portions of the data from Attachment 5 are restated in Attachment 5A to the extent additional information was available related to the timing of projects impacting revenue generation and project funding in the expansion area (collectively, Attachments 5 and 5A are referred to as the "Study"). The Study constitutes the financial analysis required by the Act. 13. Amendment to Section 502.3 of the Plan. Section 502.3 of the Plan is amended by the addition of new Section 502.3.1 entitled "Updated Ten Percent Value Limitation and the Ten Percent Geographic Limitation" 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 1, 20202 less ' See also Section 301 to the Plan,as amended. 2 Due to the timing of the assessment process and creation of this Plan,the 2020 values have been used to establish compliance with the 10%limitation.Using the 2020 values,the total adjusted base value of the existing and proposed revenue allocation areas combined with the value of this annexation into the Project Area are less than 2.62%of FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT URBAN RENEWAL PROJECT- 8 Item 5. F353] 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 and the proposed revenue allocation areas, as of January 1, 2020, is as follows: Downtown District3 $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 District4 $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 2020 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 15.86 acres; therefore, the 10% geographic limit is approximately 1.59 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. 14. 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 bases; 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. the total taxable value of the City. Even assuming an increase in values for 2022,the combined adjusted base values of the revenue allocation areas would not exceed 10%of the current assessed taxable value for the entire City. 3 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. a May not be established until calendar year 2022. s See Idaho Code Sections 50-2903A(l)(a)(ii)and 50-2033. FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT URBAN RENEWAL PROJECT- 9 Item 5. F354] 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 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 (subject to any applicable cap)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 Attachment 5A for purposes of the analysis.7 Those taxing districts and 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 TOTAL' .005877164 6 Pursuant to House Bill 389,80%of the total eligible increment value is added to the new construction roll. 7 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. 8 Net of voter approved bonds and levies. FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT URBAN RENEWAL PROJECT- 10 Item 5. F355] 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 levy9.This amendment will apply to the expansion area10 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. 9 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. 10 The amendment to Idaho Code Section 50-2908 does not apply to the original Project Area. FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE UNION DISTRICT URBAN RENEWAL PROJECT- 11 Item 5. F356] 15. 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. 16. Amendment to Plan to add new Attachment IA. The Plan is amended to add new Attachment 1A entitled"Boundary Map of the Additional Area," attached hereto. 17. 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. 18. 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. 19. 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. 20. 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 URBAN RENEWAL PROJECT- 12 Item 5. F357] Attachment IA Boundary Map of the Additional Area Item 5. F35 EXHISI 7- Q SKETCH TO ACCOMPANY URBAN RENEWAL DISTRICT DESCRIPTION T FOR MERIDIAN DEVELOPMENT CORPORATION LOCATED IN THE NW 114 OF THE SW 114 OF SECTION 7, TOWNSHIP J 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' 4D.40' 0 E J001.014 40.00' D q h I a 0 0 ZN 3k "' W sp.42' 30-01' 120.05' o ry W � ry 0' �\ 40, a.02' 40.o ' 20.01' N 88'44 00" W 9Q 05' a . _ S 88'44 00" E 380. 18' E BRa4DWAY AVENUE LEGEND URD 90UNDARY A L A N URD AREA a 187 0 CIVIL SURVEY CONSULTANTS, INC. 2893 SOUTH MERIDfAN ROAD MERIDIAN, IDAHO 83542 � 'A K013 (208)888-4312 SCALE' 1"=B0' Item 5. F359] Attachment 2A Legal Description of the Boundary of the Additional Area Item 5. F360] 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 Item 5. F361] 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 � .4 TE OF vloW. A. KO� Page 2 of 2 Item 5. F362] Attachment 4A Map Depicting Expected Land Uses and Current Zoning Within the Areas Added by the First Amendment Item 5. Future Land Uses 363 Civic L� Old Town E-PINE AVE z N W z LU N 2 H �� - - -- 4■a■J■4■It1■1�1-■ ■ E IDAHO;AVE z - - G _Q N 404-0 _0 M - E --- - E BROADWAY AVE Z —! f- N Z Q z Legend .P'E N �■ Annexation Area z Q Union District m 0 Parcels Railroad Z z N h 0 200 40Feet Item 5. Zoning 364 I-L o-T E PINE AVE R-8 R-15 H Z N W Z H t/! H � � i""""""■'■ E IDAHO AVE - z i ■ I i o M z f- N _z Q z Legend ; Annexation Area or z 0 Union District � 0 Parcels �o 0 } Railroad y W Z � 0 200 400 Z Z N v> Feet Item 5. F365] Attachment 5A Supplement to the Economic Feasibility Study: Financial Analysis Related to the 2021 Annexation 4835-4848-9712,v.7 Item 5. F366] 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, facade 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 Item 5. F367] 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 Facade 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 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 As the Idaho property tax system provides for taxes being paid in arears, Revenue Allocation funds will be received in FY2041. However, the final year of income has not been considered in determining the economic feasibility of the Union District, as amended. Item 5. F368] 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 developers, property owners 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 by 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 analysis 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. 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. z The amount of revenue allocation proceeds dedicated to the administration of the Union District, as amended [$80Z183 shown in Forecast]is supplemented by the Inter-district loan to produce the full amount over the life of the District. Item 5. F369] 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 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. Summary of Projects 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. Item 5. F370] Cost of Operations and Improvements by Year 2020-2041 Year Secure Potential District MDC Funds for Total Funding Funding Operating Loan Program, Project (TIF Expenses Debt Capital, and Liabilities & Service 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 *$3,800,000 $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. Item 5. F371] 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, 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, 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 Project Area, 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 o Improvement Value Increase @ 10%/Year then 5%/year through the remainder of the term, Item 5. F372] 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. 6 Item 5. F373] Land Value Impr.Value Cum.New Total Annual New Cumulative Increment Tax Funding for (+8%annually (+10%for 5 Const Value+ Levy Rate Admin Year Assessed Const.Value Homeowners' Taxable Value Value (H- Increment Capital Projects for 5 years years then Inflation @ (-10%) Costs(10%) Value on tax roll Exemption Base Value) Yield /Debt Service then 4%) 5%) 10%and 5% 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 ELM AM $ 225,737,000 $ 25,389,904 $ 802,183 $ 24,587,721 Item 5. 374 ssumptions: Values based on Ada County Assessor 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 Tax Rate reduced by 10%in consideration of impacts of HB389;anticipation of potential further modifications to the property tax system;and the further termination oft 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 Community Center within the District. This does not represent a commitment by the City; rather is included to assess potentially available funds to support projects. item s. Union District, as amended by the First Amendment, F375] Cash Flow Analysis 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 annual 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 $ 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 Beginning 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 Item 5. Union District, as amended by the First Amendment, F376] Cash Flow Analysis 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 remaining 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