21-1956 Urban Renewal Amendment for Union District ADA COUNTY RECORDER Phil McGrane 2021-178259
BOISE IDAHO Pgs=67 BONNIE OBERBILLIG 12/20/2021 01:42 PM
CITY OF MERIDIAN, IDAHO NO FEE
CITY OF MERIDIAN ORDINANCE NO. 21-1956
BY THE CITY COUNCIL: BERNT, BORTON, CAVENER,
HOAGLUN PERREAULT,
STRADER
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MERIDIAN, IDAHO,
APPROVING THE FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR THE
UNION DISTRICT URBAN RENEWAL PROJECT, WHICH FIRST AMENDMENT
SEEKS TO ANNEX CERTAIN PARCELS TO THE EXISTING UNION DISTRICT
PROJECT AREA; WHICH FIRST AMENDMENT INCLUDES REVENUE ALLOCATION
FINANCING PROVISIONS; AUTHORIZING THE CITY CLERK TO TRANSMIT A
COPY OF THIS ORDINANCE AND OTHER REQUIRED INFORMATION TO COUNTY
AND STATE OFFICIALS AND THE AFFECTED TAXING ENTITIES; PROVIDING
SEVERABILITY; APPROVING THE SUMMARY OF THE ORDINANCE; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Meridian City Council and Mayor of Meridian respectively on or about
July 24, 2001, adopted and approved a resolution creating the Urban Renewal Agency of Meridian,
Idaho, also known as the Meridian Development Corporation ("MDC" or the "Agency"),
authorizing it to transact business and exercise the powers granted by the Idaho Urban Renewal
Law of 1965, Chapter 20, Title 50, Idaho Code, as amended (hereinafter the "Law"), and the Local
Economic Development Act, Chapter 29, Title 50, Idaho Code, as amended (hereinafter the "Act")
upon making the findings of necessity required for creating said Agency;
WHEREAS, on October 8, 2002, the City Council (the "City Council") of the City of
Meridian, Idaho (the "City"), 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 on December 3, 2002, adopted
Ordinance No. 02-987 approving the Downtown District Plan, making certain findings and
establishing the Downtown District revenue allocation area (the "Downtown District Project
Area");
WHEREAS, the City Council, after notice duly published, conducted a public hearing on
the Urban Renewal Plan for the Ten. Mile Road -A Urban Renewal Project (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");
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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 from the Downtown District Project Area and making certain findings;
WHEREAS, the City Council, after notice duly published, conducted a public hearing on
the Urban Renewal Plan for the Union District Urban Renewal Project(the "Union District Plan");
WHEREAS, following said public hearing, the City Council adopted its Ordinance No. 20-
1882 on June 9, 2020, approving the Union District Plan, making certain findings, and establishing
the Union District revenue allocation area, which included the parcels deannexed pursuant to the
First Amendment to the Downtown District Plan(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 from the Downtown District Project Area 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, there are two additional urban renewal plans and their respective revenue
allocation project areas that may or will be considered by the City Council prior to December 31,
2021, specifically, the Urban Renewal Plan for the Northern Gateway District Urban Renewal
Project and the Urban Renewal Plan for the Linder District Urban Renewal Project, collectively
referred to as the "Proposed Urban Renewal Plans" and their respective revenue allocation project
areas are collectively referred to as the "Proposed 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, an urban renewal plan shall (a) conform to the general plan for the
municipality as a whole, except as provided in§ 50-2008(g), Idaho Code; and (b) shall be
sufficiently complete to indicate such land acquisition, demolition and removal of structures,
redevelopment, improvements, and rehabilitation as may be proposed to be carried out in the urban
renewal area, zoning and planning changes, if any, land uses, maximum densities, building
requirements, and any method or methods of financing such plan, which methods may include
revenue allocation financing provisions;
Item#7.
WHEREAS, Idaho Code Section 50-2906, also requires that in order to adopt an urban
renewal plan containing a revenue allocation financing provision, the local governing body must
make a finding or determination that the area included in such plan is a deteriorated area or
deteriorating area;
WHEREAS, based on inquiries and information presented by certain interested parties and
property owners, MDC commenced certain discussions concerning examination of an additional
area as appropriate 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 1.461 acres in size, which area was
deannexed from the Downtown District Project Area. The area is located generally in the central
part of the City on the block bounded by Main Street on the west, Idaho Avenue on the north, NE
2nd Street on the east, and Broadway Avenue on the south. The area is adjacent and contiguous to
the Union District Project Area. The eligibility study area is commonly referred to as the Idaho
Block Annexation Study Area(the "Study Area");
WHEREAS, MDC obtained an eligibility report entitled Idaho Block Annexation to Union
District (Proposed) Eligibility Report, dated June 2021 (the "Report"), which examined the Study
Area, for the purpose of determining whether such area is 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. age or obsolescence;
b. faulty lot layout in relation to size, adequacy, accessibility, or usefulness; obsolete
platting; and
C. diversity of ownership;
WHEREAS, the effects of the listed conditions cited in the Report result in economic
underdevelopment of the area, constitutes an economic or social liability, and is a menace to the
public health, safety, morals, or welfare in its present condition or use;
WHEREAS, the Report finds there is no open land within the Study Area as contemplated
in Idaho Code Sections 50-2018(9), 50-2903(8)(c), and 50-2008(d), and there are not any
agricultural operation parcels subject to property owner consent pursuant to Idaho Code Sections
50-2903(8)(f) and 50-2018(8) and(9);
WHEREAS, the MDC Board, on June 9, 2021, adopted Resolution No. 21-027 accepting
the Report and authorizing 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 amendment for the
Study Area, which plan amendment may include a revenue allocation provision as allowed by the
Act;
Item#7.
WHEREAS, the City Council on July 6, 2021, adopted Resolution No. 21-2274, declaring
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 amendment for the area designated;
WHEREAS, MDC seeks to amend the Union District Plan pursuant to Idaho Code
Sections 50-2033 and 50-2903A(I)(a)(ii), which amendment contains provisions of revenue
allocation financing, to redevelop a portion of the City pursuant to the Law and the Act, as
amended;
WHEREAS, a modification is not deemed to have occurred under Idaho Code Section 50-
2903A when there is a plan amendment to accommodate an increase in the revenue allocation area
boundary as permitted in Idaho Code Section 50-2033. The First Amendment (defined below) is
not a modification pursuant to Idaho Code Sections 50-2033 and 50-2903A(I)(a)(ii), and therefore,
the base value of the existing Union District Project Area will not be adjusted upwards;
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 undertaken the planning process during 2021;
WHEREAS, pursuant to the Law and Act, as amended, the MDC prepared the First
Amendment to the Urban Renewal Plan for the Union District Urban Renewal Project (the "First
Amendment"), and the corresponding additional urban renewal/revenue allocation area, as set forth
in Exhibit 3 attached hereto, seeking to add the Study Area to the Union District Project Area and
further, to provide updates to certain provisions and financial information from the Union District
Plan, to provide an updated projection concerning the existing and additional improvements,
projected expenses, and anticipated revenues through the Union District Plan termination;
WHEREAS, the area to be added to the Union District Project Area is shown on the
"Boundary Map of the Additional Area" and described in the "Legal Description of the Boundary
of the Additional Area," which are attached to the First Amendment as Attachments IA and 2A
respectively;
WHEREAS, the Act authorizes MDC to adopt revenue allocation financing provisions as
part of an urban renewal plan or plan amendment;
WHEREAS, the First Amendment contains revenue allocation financing provisions as
allowed by the Act;
WHEREAS, MDC and the City Council reviewed and considered the proposed public
improvements within the First Amendment during a joint meeting on August 24, 2021;
WHEREAS,the Agency Board considered all comments and information submitted to the
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Agency during several earlier Board meetings throughout 2021, and the Board meeting held on
September 22, 2021;
WHEREAS, on September 22, 2021, the Agency Board passed Resolution No. 21-038
proposing and recommending the approval of the First Amendment;
WHEREAS,the Agency submitted the First Amendment to the Mayor and City Council;
WHEREAS, the Mayor and City Clerk have taken the necessary action in good faith to
process the First Amendment consistent with the requirements set forth in Idaho Code Sections 50-
2906 and 50-2008;
WHEREAS, pursuant to the Law, at a meeting held on October 7, 2021, the Meridian
Planning and Zoning Commission considered the First Amendment and found by P& Z Resolution
No 21-03 that the First Amendment is in all respects in conformity with the City of Meridian
Comprehensive Plan, as may be amended(the "Comprehensive Plan") and forwarded its findings to
the City Council, a copy of which is attached hereto as Exhibit 1;
WHEREAS, the notice of public hearing of the First Amendment was caused to be
published by the Meridian City Clerk in the Idaho Press on October 15 and 29, 2021, a copy of said
notice is attached hereto as Exhibit 2;
WHEREAS, as of October 15, 2021, the First Amendment was submitted to the affected
taxing entities and separately to the Ada County Highway District ("ACHD"), available to the
public, and under consideration by the City Council;
WHEREAS, the City Council during its regular meeting of November 23, 2021, held such
public hearing as noticed;
WHEREAS, as required by Idaho Code sections 50-2905 and 50-2906, the First
Amendment contains the following information with specificity which was made available to the
general public and all affected taxing districts prior to the public hearing on November 23, 2021,
the regular meeting of the City Council, at least thirty (30) days but no more than sixty (60) days
prior to the date set forth final reading of the Ordinance: (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) 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, notes and/or other
obligations are repaid, upon all taxing districts levying taxes upon property in the revenue
allocation area; (6) a description of the methods of financing all estimated project costs and the time
when related costs or monetary obligations are to be incurred; (7) a termination date for the plan
and the revenue allocation area as provided for in section 50-2903(20), Idaho Code. In determining
the termination date, the plan shall recognize that the agency shall receive allocation of revenues in
the calendar year following the last year of the revenue allocation provision described in the urban
renewal plan; and (8) a description of the disposition or retention of any assets of the agency upon
the termination date. Provided however, nothing herein shall prevent the agency from retaining
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assets or revenues generated from such assets as long as the agency shall have resources other than
revenue allocation funds to operate and manage such assets;
WHEREAS, the First Amendment authorizes certain projects to be financed by
owner/developer participation agreements and proceeds from revenue allocation. Revenue
allocation bonds, or loans are permissible;
WHEREAS, appropriate notice of the First Amendment and revenue allocation provision
contained therein has been given to the affected taxing districts and to the public as required by
Idaho Code §§ 50-2008 and 50-2906;
WHEREAS, it is necessary and in the best interest of the citizens of the City, to adopt the
First Amendment and to adopt, as part of the First Amendment, revenue allocation financing
provisions that will help finance urban renewal projects to be completed in accordance with the
First Amendment, in order to: encourage private development in the urban renewal area; prevent
and arrest decay of the Amended Project Area (as defined in the First Amendment) due to the
inability of existing financing methods to provide needed public improvements; encourage the
affected taxing districts to cooperate in the allocation of future tax revenues arising in the Amended
Project Area in order to facilitate the long-term growth of their common tax base; encourage private
investment within the City; and to further the public purposes of the Agency;
WHEREAS, the City Council finds that the equalized assessed valuation of the taxable
property in the revenue allocation area as shown and described in Attachments IA and 2A of the
First Amendment is likely to increase, and continue to increase, as a result of initiation and
continuation of urban renewal projects in accordance with the First Amendment;
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
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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 the Law, 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, pursuant to Chapter 14, Title 40, Idaho Code, the ACHD is granted certain
authority and jurisdiction over public rights of way within the Amended Project Area, as that term
is defined in the First Amendment;
WHEREAS, ACHD also has the opportunity to provide comments on the proposed First
Amendment;
WHEREAS, the base assessment roll of the area added by the First Amendment, together
with the base assessment roll values of the Existing Project Areas, cannot exceed ten percent (10%)
of the current assessed values of all the taxable property in the City;
WHEREAS, it is necessary, and in the best interests of the citizens of the City to adopt the
First Amendment;
WHEREAS, the City Council at its regular meeting held on November 23, 2021,
considered the First Amendment as proposed and made certain comprehensive findings.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF
THE CITY OF MERIDIAN,IDAHO:
SECTION 1: It is hereby found and determined that:
(a) The area to be added to the existing Union District Project Area as defined in the
First Amendment is a deteriorated area or a deteriorating area as defined in the Law
and the Act and qualifies as an eligible urban renewal area under the Law and Act.
(b) The rehabilitation, conservation, development and redevelopment of the urban
renewal area pursuant to the First Amendment are necessary in the interests of public
health, safety, and welfare of the residents of the City.
(c) There continues to be a need for the Agency to function in the City.
(d) The First Amendment conforms to the City of Meridian Comprehensive Plan as a
whole.
(e) The First Amendment 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 components of the First Amendment and the need for
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overall public improvements), and shows consideration for the health, safety, and
welfare of any children, residents or businesses in the general vicinity of the urban
renewal area covered by the First Amendment.
(f) The First Amendment affords maximum opportunity consistent with the sound needs
of the City as a whole for the rehabilitation, development and redevelopment of the
urban renewal area by private enterprises.
(g) Pursuant to Idaho Code §§ 50-2007(h) and 50-2008(d)(1), the First Amendment
provides a feasible method for relocation obligations of any displaced families
residing within the Amended Project Area and there is not anticipated to be any
activity by the Agency that would result in relocation.
(h) The collective base assessment rolls for the revenue allocation areas under the
Existing Project Areas, the Proposed Project Areas and the area added by the First
Amendment, do not exceed ten percent (10%) of the assessed values of all the
taxable property in the City.
(i) The area to be added by the First Amendment does not exceed ten percent (10%) of
the geographical area contained within the existing Union District Project Area, and
the area to be added is contiguous to the existing Union District Project Area.
(j) The First Amendment includes the requirements set forth in Idaho Code § 50-2905
with specificity.
(k) The First Amendment is sufficiently complete to indicate such land acquisition,
demolition and removal of structures, redevelopment, improvements, and
rehabilitation as may be proposed to be carried out in the urban renewal area, zoning
and planning changes (if any) land uses, maximum densities, building requirements,
and any method or methods of financing such plan, which methods may include
revenue allocation financing provisions.
(1) The urban renewal area, which includes the deteriorating area, as defined in Idaho
Code section 50-2018(9) and Idaho Code section 50-2903(8)(f), does not include any
agricultural operation requiring consent.
(m) The portion of the Amended Project Area which is identified for non-residential uses
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.
(n) The portion of the Amended Project Area which is identified for residential uses is
necessary and appropriate as 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
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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.
SECTION 2: The City Council finds that the area added by the First Amendment does not
include open land, that the Agency may acquire land within the Amended Project Area, and that the
Amended Project Area is planned to be redeveloped in a manner that will include both residential
and nonresidential uses.
SECTION 3: The City Council finds that one of the First Amendment objectives to increase
the residential opportunity does meet the sound needs of the City and will provide housing
opportunities in an area that does not now contain such opportunities, and the portion of the
Amended Project Area which is identified for nonresidential uses are necessary and appropriate to
facilitate the proper growth and development standards in accordance with the objectives of City's
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.
SECTION 4: The First Amendment, a copy of which is attached hereto and marked as
Exhibit 3-and made a part hereof by attachment, be, and the same hereby is, approved. As directed
by the City Council, the City Clerk and/or the Agency may make certain technical corrections or
revisions in keeping with the information and testimony presented at the November 23, 2021,
hearing and incorporate changes or modifications, if any.
SECTION 5: The boundaries of the area added by the First Amendment overlap the
boundaries of the ACHD, which has the responsibility for the maintenance of roads and highways
within the City. The Agency has negotiated an agreement with the ACHD pursuant to Idaho Code
Section 50-2908(2)(a)(iv) for the area added by the First Amendment.
SECTION 6: The City Council declares that nothing within the First Amendment is
intended or shall be interpreted to usurp the jurisdiction and authority of ACHD as defined in
chapter 14, Title 40, Idaho Code. Further, pursuant to Section 40-1415, Idaho Code, ACHD has
authority over the planning, location, design, construction, reconstruction, and maintenance of the
City rights of way and accompanying curbs, gutters, culverts, sidewalks, paved medians, bulkheads,
and retaining walls. In the planning process, ACHD shall take into consideration the principles
contained in the First Amendment.
SECTION 7: No direct or collateral action challenging the First Amendment shall be
brought prior to the effective date of this Ordinance or after the elapse of thirty (30) days from and
after the effective date of this Ordinance adopting the First Amendment.
SECTION 8: Upon the effective date of this Ordinance, the City Clerk is authorized and
directed to transmit to the County Auditor and Ada County Assessor, and to the appropriate
officials of Ada County Board of County Commissioners, City of Meridian, Ada County Highway
District, West Ada School District, Ada County Ambulance/EMS, Meridian Cemetery Maintenance
District, College of Western Idaho, Meridian Free Library District, Mosquito Abatement District,
the Western Ada Recreation District, and the State Tax Commission a copy of this Ordinance, a
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copy of the legal description of the boundaries of the area added, and a map indicating the
boundaries of the area added.
SECTION 9: The City Council hereby finds and declares that the Revenue Allocation
Area, as amended to include the additional area as defined in the First Amendment, the
equalized assessed valuation of which the City Council hereby determines is likely to increase
and/or continue to increase as a result of the initiation and completion of urban renewal projects
pursuant to the First Amendment.
SECTION 10: The City Council hereby approves and adopts the following statement policy
relating to the appointment of City Council members as members of the Agency's Board of
Commissioners: If any City Council members are appointed to the Board, they are not acting in an
ex officio capacity but, rather, as private citizens who, although they are also members of the City
Council, are exercising their independent judgment as private citizens when they sit on the Board.
Except for the powers to appoint and terminate Board members and to adopt the First Amendment,
the City Council recognizes that it has no power to control the powers or operations of the Agency.
SECTION 11: So long as any Agency bonds, notes or other obligations are outstanding, the
City Council will not exercise its power under Idaho Code section 50-2006 to designate itself as the
Agency Board.
SECTION 12: This Ordinance shall be in full force and effect immediately upon its
passage, approval, and publication and shall be retroactive to January 1, 2021, to the extent
permitted by the Act, for the area added by the First Amendment, with the existing Union District
Project Area maintaining its base assessment roll as of January 1, 2020.
SECTION 13: The provisions of this Ordinance are severable, and if any provision of this
Ordinance or the application of such provision to any person or circumstance is declared invalid for
any reason, such determination shall not affect the validity of remaining portions of this Ordinance.
SECTION 14: The Summary of this Ordinance, a copy of which is attached hereto as
Exhibit 4, is hereby approved.
SECTION 15: All ordinances, resolutions, orders, or parts thereof in conflict herewith are
hereby repealed, rescinded, and annulled.
SECTION 16: Savings Clause. This Ordinance does not affect an action or proceeding
commenced or right accrued before this Ordinance takes effect.
PASSED by the City Council of the City of Meridian, Idaho, this 7th day of December
2021.
APPROVED by the Mayor of the City of Meridian, Idaho, this 7th day of December
2021.
Item#7.
APPROVED: ATTEST: l-
(� w,, r✓ ac .-7-2021
Robert imiso M or 12-7-2021 Chris Johns , City
Item#7.
Exhibit I
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
Page 435
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.
Page 436
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: TEST:
6-
Chair, Planning and Zoning Commission 64XIerk Chris Johnson 147-2021
By Andrew Seal Vice Chairperson By Adrienne Weatherly, Deputy City Clerk
4810-4341-8296,v. 1
Item#7. Mayor Robert E.Simison
E IDIAN City Council Members:
r��� Treg Bernt Brad Haaglun
Joe Borton Jessica Perreault
D 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 Page 438
Phone 208-884-5533 - Fax 208-888-6854 - www.meridiancity.org
Item#7.
• 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
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Item#7.
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
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Item#7.
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
Page 441
Item#7.
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 of Meridian'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:
hllps:Hmeridiancit. .or lannin /g coMpplan/resources.
Page 442
Item#7.
Attachment A: Union District (Urban Renewal District)
Future Land Uses
Civic u WJ—
Old Town E PINE A'VE
I
o
z
z
- - ■r ■araaa i�_r_■ E IDAHO AVE z
Ll
z � y
a M
w- - - — E BROADWAY-AVE z
Z
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A n nexatio n Area N
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rn I] Parcels
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Page 443
Item#7.
Attachment B: Downtown Meridian Street Cross-section Master Plan Examples
Idaho Avenue
CORRIDOR: Idaho Avenue
•• = andfamilies interested in more urban and pedestrian
Idaho is an iconic downtown corridor in Meridian, friendly environment.
providing connectivity to Generations Plaza,Centen- 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 imity to several key community resources,provides a =nRLTON 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- d
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.in thefuture,Idaho may framework. --r
be extended further east to Locust,though Broadway
Is the preferred alignment extension. s y
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 °
district supports greater densities of mixed use ell 7a 1LJEwdt 1!
opment,iconic to traditional downtowns.The NPA are £ £
intended to preserve historic housing,promote resi- D-Pne,.vet'cane in, on be h sides of me street,heavy...face parkfug, nrty infra.
dentialinfill,andprovidealocalbaseofresidentsto AnAsr and go--ntowneapnope yIimi«—WyonpaKofIdahobetweenMerfdranRoad
participate in events,frequent restaurants and shops, and Main.With the exception of sunrise cafe and she Hariage Building,there are li rereed askaag
and to provide residential opportunities for individuals uses on this segmenr or ldaho wld,daoy co—,,,d—i—the down—a,.
o-
IA .� Fr I
CLQSED Y
Looking west along Idaho,k—te Meddlen and 11,n t,I Looking weztalong Min n, Lookingwe
Jill 11
LAIU
_ 1I _
DOWNTOWN MERi DIAN CITY CORE STREET CROSS-5ECTION MASTER PLAN v STREET DESIGN
Page 444
Item#7.
IDAHO AVENUE: Main Street to East 2nd Street
E {Bunn Facing East}
EResign is hanad I,e.tento
pressrrauos m { o'.. ofedating ROVI.
_ S }
r Perking
fir Sidewalks
Sreet.cage Raiicr u �
m
r Perkway R.ffsr S � -" if i pill nor
r Formturecan
r u9n1,9 2
Izcg,red,o besired
' — z
W
Existing edge of RRIV boring edge of R Qon sT
Pedestrian
i
I I
and aesthetic enhancements such as street furnishings,way IMPLEMENTATION PROCESS:
Main Street to fast 2nd 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
CONSIDERATIONS: allowfor both safe pedestrian facilities and business uses. Cross-section riidtg SR-feet{RbW1 go feet
P changes to finished grade,this street segment should
This segment of Idaho between Main and East 2nd is Y DESCRIPTION OF ULTIMATE CONDITIONS: be reconstructed all at once.Curbs may be included,but Road T,ve-w, iws-wap
the definitively classic downtown street.Businesses are Parking Parallel ihath aideel Perpeadl.slar fine-eidel
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 reci l- Parking CnPamty' IR 21
services,the buildings are older,and the street is spatially streetuses a unique cross-section to address parking con- opment project is envisioned to occur as a public-private Wolk-7s lea.oidol 4tr 5-feet lure 14-fort
constrained.The streetscape is important for pedestrian siderations while maximizing the pedestrian environment. or public-public partnerships.In the interim,maintenance Suffer(ea..,do) Varies Varies
connectivity;sharing a special connection with Main Street Parallel parking which currentlyexists on both sides ofthe should continue to occurand efforts madeto ensure safe Pathway gene Nee.
and Generations Plaza,and connecting to both the Merid- street has been relocated and converted to perpendicular conditions of existing walkways and other improvements. aikn sn t pane R.n.
ian Community Center and Centennial Park. parking on the north side.Existing curb cuts for a park- Pear
The unique design of this street will require further con- «Parkin impacts and fdure veluse are coo—res.do not indicate interim
ing lot on the south side of the street,currently serving g g
I NTE NT: siderations,additional refinement,and coordination with conditions
en and assume lull ao IW Ids,wah cross So,Po.Driveways,lire h;-
a bank,greatly reduces the effectiveness of on-street ACHD. aranto.and mhar.eaaitiona map alter final.oenr.Sea Parklag aa.tloa radar
This cross-section is intended to enhance the streetscape parallel parking configurations and parking availability Street0osigo.
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.
LOW
DOWNTOWN MERIDIAN CITY CORE STREET CROSS-SECTION MASTER PLAN STREET DESIGN
Page 445
Item#7.
Exhibit 2
Notice Published in the Idaho Press
Page 446
{{ SOAD#
ItP,ITI#7. LEGAL NOTICE
NOTICE OF REGULAR MEETING AND PUBLIC
HEARING BY THE CITY COUNCIL OF THE CITY OF
MERIDIAN,IDAHO TO CONSIDER THE FIRST AMEND
-
MENT TO THE URBAN RENEWAL PLAN FOR THE UNION
DISTRICT URBAN RENEWAL PROJECT OFTHE URBAN
RENEWAL AGENCY OF MERIDIAN,IDAHO,ALSO KNOWN
AS MERIDIAN DEVELOPMENT CORPORATION
NOTICE IS HEREBY GIVEN that on Tuesday,November
23,2021,at 6:00 p.m.in City Council Chambers,Meridian City
Hall,33 E.Broadway Avenue,Meridian,Idaho,83642,and/or in
virtual meeting as may be noticed on the City,w,bar,(www.
meridiancity.org),the City Council of the City of Meridian,Ida-
ho("Cffy')will hold,during its regular meeting,a public has,
ing to consider for adoption the proposed First Amendment to
the Urban Renewal Plan for the Union District Urban Renew-
al Project("First Amendment"),concerning the Union District
Urban Renewal Plan and Revenue Allocation Area("Existing
Union District Project Area")of the Urban Renewal Agency of
Meridian,Idaho,also known as Meridian Development Corpo-
ration('Agency").The general scope and objective of the Fast
Amendment is the add It-of approximately 1.46 acres(in-
cluding ng,h,-of-way)of land contiguous to the northwestern
boundary of the Existing Union District Pmject Ara.The urban
renewal and revenue allocation area boundary for the area to
be added is coterminous and is hereinafter described.
The First Amendment proposes that the Agency undertake
urban renewal projects,including identifying public facilities
for funding,pursuant to the Idaho Urban Renewal Law of
1965,chapter 20,title 50,Idaho Code,as amended.The Fret
Amendment being considered for adoption contains a revenue
allocation financing provision pursuant to the Local Economic
Development Act,chapter 29,title 50,Idaho Cotle,as amend.
ad,that for the area added will cause property taxes resulting
from any increase in eq,,I,wd assessed valuation in excess
of the equalized assessed valuation as shown on the base
sonmsment roll as of January 1,2021,to be allocated to the
Agency for urban renewal purposes.The boundary of the addi-
tional area includes both urban renewal and revenue allocation
as.The Existing Union District Project Area contains a previ-
o sy adopted revenue at-often financing provision pursuant
to the Act that will continue to cause property taxes resulting
from any increase in equalized assessed valuation in excess
of the equalized assessed valuation as shown on the base
ment mil as of January 1,2020,to be allocated to the
Agency for urban renewal purposes.The Agency has adopted
and recommended approval of the First Amentlment,The City
Council will be considering the second reading of an ordinance
to adopt the First Amendment at the meeting scheduled for No-
vember 23,2021,at 6:00 p.m.An additional reading will follow
consistent with the
City's ordinance approval process.The First
Amendment does not extend the du
retion of the Existing Union
District Project Area.
The general scope and objectives of the First Amendment
The First Amendment proposes improvements to public in-
frastructure and other publicly owned assets throughout the
amendment area,creating the framework for the development
of mixed-use,retail,office,commercial,and residential pmj-
eMs,as well as tarred,improvements,planning studies and
installation and improvements to other public facilities,includ.
ing,but not limited to,streets,ske,tscap-,water and sewer
improvements,environmental and 0oodplain remetliation/site
preparation,public parking,other community facilities,parks,
plazas,open space,and pedestrian/bike amenities,as more
fully described in the First Amendment.
Any such land uses as described in the First Amendment will
be in conformance with zoning for the City and the Citys Com-
prehensive Plan,a ended.Land made available will be
tleveloped by private enterprises or public agencies as autho-
ized by law.The Rest Amendment identifies various public and
private improvements which may be made within the Amended
ProjeclAnea.
The Fast Amendment shall add the following area to the Ex-
isting Union District Project Area described as follows:
An area consisting of approximately 1.46 acres(including
rights-of-way)of land contiguous to the northwestern boundary
of the Existing Union District Project Area and generally bound-
ed by E.Idaho Avenue on the north,HE 2nd Street on the east,
a portion of Broadway Avenue on the south,and E.Main Street
on the west,an area returned to as the"Idaho Block'and as
ore particularly described in the First Amendment and depict-
ed in the Map below:
fxN�I R
S,YLTGW)0 AGCOMP RBaN RCNEWAL 0/S 11E 10K OCSCRI
!0.R MFR/04W 0£vFLOPMENI GYWPORA1ON LOGIEO/N ME
SCC—,)OWNSN/P J NORM,
RANGE!FAS/,BOISE MERMNN Aa4 COUNTY.IQAHO
a I
u
i 4
} 8)0
Copies of the proposed First Amendment and the existing
Union District Urban Renewal Plan are an file for public inspec-
tion and copying at the office of Me City Clerk,Meridian City
Hall,33 E.Broadway Avenue,Meridian,Idaho 83642,between
the hours of 8:00 a.m.and 5:00 p.m.,Monday through Friday,
exclusive of holidays.Costs for copying are outlined in Idaho
Code Section 74-102.The proposed First Amendment can also
be acoessed online at hdps//balyUnionFirstAmend—rit.For
atld0ional assistance in obtaining a copy of the Rat Amend
ment in the event of business,ce interruptions,contact the
office of the City Clerk at 208-888-4433.
At the hearing date,time,and place noted above(November
23,2021,at 6:00 fore),all persons interested in the above mat-
ters may appear and be heard.Because social distancing or-
ders may be in effect at the time of the hearing,written testimo-
ny is encouragetl.Written testimony must be submitted at least
I.working days prior to the hearing.Oral testimony may be
limited to three minutes per person.Information on assessing
the meeting remotely will be posted oa the published agendas,
no later than 48 hours prior to the meeting at htfps:Hmeridi-
anc0yo4agendas.Additional information regarding providing
testimony in compliance with any social distancingg orders in
effect may be obtained by calling 208-888-4433 or by email at
cffvclerk@mer dianc'(y gJg,
Meritlian City Hall is accessible to persons with disabilities.
All information presented in the hearing shall also be available
upon advance request in a form usable by persons with hear-
ing o visual impairments.Individuals with other disabili es
e may receive assistance by connecting the City 24 hours prior
to the hearing.
DATED:October 8,2021.
Chris Johnson,City Clerk
October 15,29,2021 156880
Page 447
Item#7.
Exhibit 3
First Amendment to the Urban Renewal Plan for the Union District Urban Renewal Project
Page 448
Item#7.
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. 21-1954
Adopted 12/07/2021
Effective 12/12 2021, publication
FIRST AMENDMENT TO THE URBAN RENEWAL
PLAN FOR THE UNION DISTRICT URBAN RENEWAL PROJECT- 1 Page 449
Item#7.
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 Page 450
Item#7.
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 Page 451
Item#7.
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. 21-038 on September 22, 2021 and
FIRST AMENDMENT TO THE URBAN RENEWAL
PLAN FOR THE UNION DISTRICT URBAN RENEWAL PROJECT-4 Page 452
Item#7.
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 21-06 dated
October 7, 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. 21-1956
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 Page 453
Item#7.
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 Page 454
Item#7.
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 Page 455
Item#7.
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 Page 456
Item#7.
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 Page 457
Item#7.
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 Page 458
Item#7.
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 Page 459
Item#7.
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 Page 460
Item#7.
Attachment IA
Boundary Map of the Additional Area
Page 461
Item#7. X ISI7- 3
SKETCH TO ACCOMPANY URBAN RENEWAL DISTRICT DESCRIPTION
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 S9" E 380.Q5'
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Page 462
Item#7.
Attachment 2A
Legal Description of the Boundary of the Additional Area
Page 463
Item#7.
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 TOWN5ITE OF MERIDIAN as found in Book 1 of plats at Page 30 in the
office of the Recorder, Ada County, Idaho, more particularly described as follows:
Commencing at a 5/8 inch diameter iron pin marking the intersection of N Main Street and
E Idaho Avenue, from which a brass cap monument marking the intersection of NE 2nd Street
and E Idaho Avenue gears S 88'43'S9" E a distance of 380.05 feet;
Thence S 88'43'59" E along the centerline of said E Idaho Avenue a distance of 40.00 feet to the
POINT OF BEGINNING;
Thence continuing S 88043'59" E a distance of 300.04 feet to a point on an extension of the
easterly boundary of said Block 4;
Thence leaving said centerline S 0'31`47" W a distance of 40.00 feet to a point marking the
northeasterly corner of said Block 4;
Thence continuing S 0'31'47" W along said easterly boundary a distance of 256.13 feet to a
point marking the southeasterly corner of said Block 4;
Thence N 88°44'00" W along the southerly boundary of said Block 4 a distance of 90.05 feet to
a point marking the southwesterly corner of Lot 8 of said Block 4;
Thence leaving said southerly boundary N 0'32'12" E along the westerly boundary of said Lot 8
a distance of 120.07 feet to a point marking the northwesterly corner of said Lot 8;
Thence N 88°4359" W along the northerly boundary of Lots 1 —7 of said Block 4 a distance of
210.08 feet to a point on the westerly boundary of said Block 4, said point being the
northwesterly corner of Lot 1 of said Block 4;
Thence N 0'33'09" E along said westerly boundary a distance of 136.07 feet to a point marking
the northwesterly corner of said Block 4;
Page 1 of 2
Page 464
Item#7.
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
A. KOa
Page 2 of 2
Page 465
Item#7.
Attachment 4A
Map Depicting Expected Land Uses and Current Zoning Within the Areas Added by the First
Amendment
Page 466
Item#7.
u ure Land Uses
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Page 467
Item#7.
onin
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JPage 468
Item#7.
Attachment 5A
Supplement to the Economic Feasibility Study:
Financial Analysis Related to the 2021 Annexation
4835-4848-9712,v.7
Page 469
Item#7.
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
Page 470
Item#7.
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.
Page 471
Item#7.
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.
Page 472
Item#7.
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.
Page 473
Item#7.
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.
Page 474
Item#7.
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,
Page 475
Item#7.
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
Page 476
Item#7.
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
$ 225,737,000 MIM "qmm $ 25,389,904 $ 802,183 $ 24,587,721
Page 477
Item#7.
tions:
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.
Page 478
Item#7.
Union District, as amended by the First Amendment,
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
Page 479
Item#7.
Union District, as amended by the First Amendment,
Cash Flow Analysis
Assumptions
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
Page 480
Item#7.
Exhibit 4
Summary of Ordinance No. 21-1956
4832-4104-2941, v. 1
Page 481
NOTICE AND PUBLISHED SUMMARY
OF ORDINANCE PURSUANT TO I.C. §50-901(A)
CITY OF MERIDIAN ORDINANCE NO. 21-1956
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MERIDIAN, IDAHO,
APPROVING THE FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR
THE UNION DISTRICT URBAN RENEWAL PROJECT, WHICH FIRST
AMENDMENT SEEKS TO ANNEX CERTAIN PARCELS TO THE EXISTING UNION
DISTRICT PROJECT AREA; WHICH FIRST AMENDMENT INCLUDES REVENUE
ALLOCATION FINANCING PROVISIONS; AUTHORIZING THE CITY CLERK TO
TRANSMIT A COPY OF THIS ORDINANCE AND OTHER REQUIRED
INFORMATION TO COUNTY AND STATE OFFICIALS AND THE AFFECTED
TAXING ENTITIES; PROVIDING SEVERABILITY; APPROVING THE SUMMARY
OF THE ORDINANCE; AND PROVIDING AN EFFECTIVE DATE.
NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY
OF MERIDIAN, IDAHO:
SECTION 1: It is hereby found and determined that:
(a) The area to be added to the existing Union District Project Area as defined in the First
Amendment is a deteriorated area or a deteriorating area as defined in the Law and the Act and
qualifies as an eligible urban renewal area under the Law and Act.
(b) The rehabilitation, conservation, development and redevelopment of the urban renewal
area pursuant to the First Amendment are necessary in the interests of public health, safety, and
welfare of the residents of the City.
(c) There continues to be a need for the Agency to function in the City.
(d) The First Amendment conforms to the City of Meridian Comprehensive Plan as a whole.
(e) The First Amendment 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 components of the First Amendment and the need for overall public
improvements), and shows consideration for the health, safety, and welfare of any children,
residents or businesses in the general vicinity of the urban renewal area covered by the First
Amendment.
(f) The First Amendment affords maximum opportunity consistent with the sound needs of
the City as a whole for the rehabilitation, development and redevelopment of the urban renewal
area by private enterprises.
(g) Pursuant to Idaho Code §§ 50-2007(h) and 50-2008(d)(1), the First Amendment provides
a feasible method for relocation obligations of any displaced families residing within the
ORDINANCE SUMMARY - 1
Page 482
Item#7.
Amended Project Area and there is not anticipated to be any activity by the Agency that would
result in relocation.
(h) The collective base assessment rolls for the revenue allocation areas under the Existing
Project Areas, the Proposed Project Areas and the area added by the First Amendment, do not
exceed ten percent(10%) of the assessed values of all the taxable property in the City.
(i) The area to be added by the First Amendment does not exceed ten percent (10%) of the
geographical area contained within the existing Union District Project Area, and the area to be
added is contiguous to the existing Union District Project Area.
(j) The First Amendment includes the requirements set forth in Idaho Code § 50-2905 with
specificity.
(k) The First Amendment is sufficiently complete to indicate such land acquisition,
demolition and removal of structures, redevelopment, improvements, and rehabilitation as may
be proposed to be carried out in the urban renewal area, zoning and planning changes (if any)
land uses, maximum densities, building requirements, and any method or methods of financing
such plan, which methods may include revenue allocation financing provisions.
(1) The urban renewal area, which includes the deteriorating area, as defined in Idaho Code
section 50-2018(9) and Idaho Code section 50-2903(8)(f), does not include any agricultural
operation requiring consent.
(m) The portion of the Amended Project Area which is identified for non-residential uses 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.
(n) The portion of the Amended Project Area which is identified for residential uses is
necessary and appropriate as 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.
SECTION 2: The City Council finds that the area added by the First Amendment does not
include open land, that the Agency may acquire land within the Amended Project Area, and that
the Amended Project Area is planned to be redeveloped in a manner that will include both
residential and nonresidential uses.
SECTION 3: The City Council finds that one of the First Amendment objectives to increase the
residential opportunity does meet the sound needs of the City and will provide housing
ORDINANCE SUMMARY- 2
Page 483
Item#7.
opportunities in an area that does not now contain such opportunities, and the portion of the
Amended Project Area which is identified for nonresidential uses are necessary and appropriate
to facilitate the proper growth and development standards in accordance with the objectives of
City's 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.
SECTION 4: The First Amendment, a copy of which is attached hereto and marked as Exhibit 3
and made a part hereof by attachment, be, and the same hereby is, approved. As directed by the
City Council, the City Clerk and/or the Agency may make certain technical corrections or
revisions in keeping with the information and testimony presented at the November 23, 2021,
hearing and incorporate changes or modifications, if any.
SECTION 5: The boundaries of the area added by the First Amendment overlap the boundaries
of the ACHD, which has the responsibility for the maintenance of roads and highways within the
City. The Agency has negotiated an agreement with the ACHD pursuant to Idaho Code Section
50-2908(2)(a)(iv) for the area added by the First Amendment.
SECTION 6: The City Council declares that nothing within the First Amendment is intended or
shall be interpreted to usurp the jurisdiction and authority of ACHD as defined in chapter 14,
Title 40, Idaho Code. Further, pursuant to Section 40-1415, Idaho Code, ACHD has authority
over the planning, location, design, construction, reconstruction, and maintenance of the City
rights of way and accompanying curbs, gutters, culverts, sidewalks, paved medians, bulkheads,
and retaining walls. In the planning process, ACHD shall take into consideration the principles
contained in the First Amendment.
SECTION 7: No direct or collateral action challenging the First Amendment shall be brought
prior to the effective date of this Ordinance or after the elapse of thirty (30) days from and after
the effective date of this Ordinance adopting the First Amendment.
SECTION 8: Upon the effective date of this Ordinance, the City Clerk is authorized and
directed to transmit to the County Auditor and Ada County Assessor, and to the appropriate
officials of Ada County Board of County Commissioners, City of Meridian, Ada County
Highway District, West Ada School District, Ada County Ambulance/EMS, Meridian Cemetery
Maintenance District, College of Western Idaho, Meridian Free Library District, Mosquito
Abatement District, the Western Ada Recreation District, and the State Tax Commission a copy
of this Ordinance, a copy of the legal description of the boundaries of the area added, and a map
indicating the boundaries of the area added.
SECTION 9: The City Council hereby finds and declares that the Revenue Allocation Area, as
amended to include the additional area as defined in the First Amendment, the equalized
assessed valuation of which the City Council hereby determines is likely to increase and/or
continue to increase as a result of the initiation and completion of urban renewal projects
pursuant to the First Amendment.
SECTION 10: The City Council hereby approves and adopts the following statement policy
relating to the appointment of City Council members as members of the Agency's Board of
ORDINANCE SUMMARY - 3
Page 484
Item#7.
Commissioners: If any City Council members are appointed to the Board, they are not acting in
an ex officio capacity but, rather, as private citizens who, although they are also members of the
City Council, are exercising their independent judgment as private citizens when they sit on the
Board. Except for the powers to appoint and terminate Board members and to adopt the First
Amendment, the City Council recognizes that it has no power to control the powers or operations
of the Agency.
SECTION 11: So long as any Agency bonds, notes or other obligations are outstanding, the City
Council will not exercise its power under Idaho Code section 50-2006 to designate itself as the
Agency Board.
SECTION 12: This Ordinance shall be in full force and effect immediately upon its passage,
approval, and publication and shall be retroactive to January 1, 2021, to the extent permitted by
the Act, for the area added by the First Amendment, with the existing Union District Project
Area maintaining its base assessment roll as of January 1, 2020.
SECTION 13: The provisions of this Ordinance are severable, and if any provision of this
Ordinance or the application of such provision to any person or circumstance is declared invalid
for any reason, such determination shall not affect the validity of remaining portions of this
Ordinance.
SECTION 14: The Summary of this Ordinance, a copy of which is attached hereto as Exhibit 4,
is hereby approved.
SECTION 15: All ordinances, resolutions, orders, or parts thereof in conflict herewith are
hereby repealed, rescinded, and annulled.
SECTION 16: Savings Clause. This Ordinance does not affect an action or proceeding
commenced or right accrued before this Ordinance takes effect.
PASSED by the City Council of the City of Meridian, Idaho, this 7th day of December 2021.
APPROVED by the Mayor of the City of Meridian, Idaho, this 7th day of December 2021.
EXHIBITS TO THE ORDINANCE
Exhibit 1 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
Exhibit 2 Notice Published in the Idaho Press
Exhibit 3 First Amendment to the Urban Renewal Plan for the Union District Urban
Renewal Project
ORDINANCE SUMMARY -4
Page 485
Item#7.
Exhibit 4 Ordinance Summary
SUMMARY OF THE FIRST AMENDMENT TO THE URBAN RENEWAL PLAN FOR
THE UNION DISTRICT URBAN RENEWAL PROJECT
The First Amendment ("First Amendment") to the Urban Renewal Plan for the Union
District Urban Renewal Project("Plan") was prepared by the Urban Renewal Agency of the City
of Meridian aka the Meridian Development Corporation("MDC" or the "Agency")pursuant to
the Idaho Urban Renewal Law of 1965, Chapter 20, Title 50, Idaho Code, as amended(the
"Law"), the Local Economic Development Act, Chapter 29, Title 50, Idaho Code, as amended
(the "Act"), and all applicable laws and ordinances and was approved by the Agency. The First
Amendment amends the Plan and the existing Project Area to add approximately 1.46 acres of
land(including rights-of-way) adjacent and contiguous to the northwestern boundary of the
existing Project Area. The First Amendment proposes that the Agency undertake urban renewal
projects, including identifying public facilities for funding pursuant to the Law and the Act. The
First Amendment contains a revenue allocation financing provision pursuant to the Act, that for
the area added will cause property taxes resulting from any increase in equalized assessed
valuation in excess of the equalized assessed valuation as shown on the base assessment roll as
of January 1, 2021, to be allocated to the Agency for urban renewal purposes. The boundary of
the additional area includes both urban renewal and revenue allocation areas. The existing
Project Area contains a previously adopted revenue allocation financing provision pursuant to
the Act that will continue to cause property taxes resulting from any increase in equalized
assessed valuation in excess of the equalized assessed valuation as shown on the base assessment
roll as of January 1, 2020, to be allocated to the Agency for urban renewal purposes.
The First Amendment 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).
The general scope and objectives of the First Amendment area are limited to addressing the
annexation of the additional area into the existing Project Area, recognizing certain portions of
the Economic Feasibility Study may be restated to the extent additional information is available
related to the timing of projects impacting revenue generation and project funding in the
expansion area:
The First Amendment proposes improvements to the Amended Project Area
generally including 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,planning studies and brownfield and/or environmental clean-up.
Any such land uses as described in the First Amendment will be in conformance with zoning for
the City and the City's Comprehensive Plan, as amended. Land made available will be developed
by private enterprises or public agencies as authorized by law. The First Amendment identifies
ORDINANCE SUMMARY- 5
Page 486
Item#7.
various public and private improvements which may be made within the Amended Project Area.
The area added to the existing Union District Project Area and Revenue Allocation Area by the
First Amendment is generally described as follows:
An area consisting of 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" and as more particularly described in the First
Amendment and depicted in the Map below:
ORDINANCE SUMMARY - 6
Page 487
Item#7.
EXHIBIT 8
SKETCH TO ACCOMPANY URBAN RENEWAL DISTRICT DESCRIPTION
FOR MERIDIAN DEVELOPMENT CORPORATION LOCATED IN THE
NW 114 OF THE SW 114 OF SECTION 7, TOWNSHIP 3 NORTH,
RANGE I EAST, BOISE MERIDIAN, ADA COUNTY, IDAHO
POINT- OF E 44HO AVENUE
EFOINIVING BASIS OF BEARING
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LEGEND
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CIVIL SURVEY CONSULTANTS, INC.
2883 SOUTH MERIDIAN ROAD F 19t' �Q'-
MERIDIAN, IDAHO83642 A.�Kd��
(208)8884312 sr�r✓_ 1"=sa'
Section 100 is amended to update references to the Plan Attachments, the procedural
history and history of the area added by the First Amendment.
ORDINANCE SUMMARY - 7
Page 488
Item#7.
Section 200 is amended to update references to the Amended Project Area maps and legal
descriptions.
Sections 300 is amended to update the proposed redevelopment actions.
The First Amendment also updates the revenue allocation financing provisions in Section 500.
Among other sources, the First Amendment will utilize revenue allocation financing as
authorized by the Act.
Increases in assessed valuation of real and personal property in the area added by the First
Amendment that occur after January 1, 2021, and for the existing Project Area that occur after
January 1, 2020, will generate revenue for the Agency to pay project costs. The assessed
valuation of real and personal property on the base assessment roll is still available for use by the
other taxing districts, Ada County Board of County Commissioners, City of Meridian, Ada
County Highway District, West Ada School District, Ada County Ambulance/EMS, Meridian
Cemetery Maintenance District, College of Western Idaho, Meridian Free Library District,
Mosquito Abatement District, Western Ada Recreation District to finance their operations. The
First Amendment authorizes the Agency to sell revenue bonds to finance project costs and to use
annual revenue allocations to pay debt service, as well as developer/owner participation
agreements and revenue allocation proceeds.
Attachment 5 is supplemented to include the financial analysis related to the 2021 annexation
and describes in detail the cost and financing methods for complete repayment of any debt
incurred used to finance projects and to also fund the additional described activities for the area
added by the First Amendment.
The First Amendment follows the underlying zoning classifications of the City.
The First Amendment does not extend the duration of the existing Plan and Project Area, which
will terminate on December 31, 2040, except for any revenue allocation proceeds received in
calendar year 2041, as contemplated by Idaho Code § 50-2905(7).
ATTACHMENTS TO THE FIRST AMENDMENT
Attachment IA Boundary Map of the Additional Area
Attachment 2A Legal Description of the Boundary of the Additional Area
Attachment 4A Map Depicting Expected Land Uses and Current Zoning Within the Area
Added by the First Amendment
Attachment 5A Supplement to the Economic Feasibility Study: Financial Analysis Related
to the 2021 Annexation
This Ordinance shall be in full force and effect immediately upon its passage, approval, and
publication and shall be retroactive to January 1, 2021, to the extent permitted by the Act.
ORDINANCE SUMMARY - 8
Page 489
Upon the effective date of this Ordinance , the City Clerk is authorized and directed to transmit to
the County Auditor and Ada County Assessor, and to the appropriate officials of Ada County
Board of County Commissioners , City of Meridian , Ada County Highway Di ,,13trict, West kda
School District, Ada County Ambulance/EMS , Meridian Cemetery Maintenance District,
College of Western Idaho ; Meridian Free Library District, Mosquito Abatement District,
Western Ada Recreation Di" stri" ct, and the State Tax Commission a copy of this Ordinance , a
copy of the legal description of the boundaries of the area added , and a map indicating the
boundaries of the area added .
A full text of this ordinance and the. Iavailable for inspection at ,City I lail ,
City cridian , 33 East Broad Avenue , Mer Idaho .
40 lk
U LU
A 0
J
J
Ci* of M rid n 1 21
ayor a ty uncil
By : Chrl& on , City Cleric a«,,e ��`�P
First Reading : 11 / 16/2021 ; Second Reading and Public Hearing : 11 /23 /2021 ; ThirdR eading :
12/7/2021
STATEMENT OF MERIDIAN CITY ATTORNEY AS TO ADEQUACY OF SUMMARY
OF O RDINANCE NO . 21 - 1956
The undersigned , William L . M . Nary, - City Attorney of the City of Meridian-, Idaho , hereby
No
certifies that he is the legal advisor of the City and has reviewed a copy of the attached
Ordinance No . 21 - 1956 of the City of Meridian , Idaho , and has found the same to be true and
complete and provides adequate notice to the public pursuant to Idaho Code § 50 - 90 ]. A (3 ) 0
DATED this nth day of December, 2021 .
Apie 1111111111P
William . L . M . Nary, C ty Attorney
4847-3467-39171 V. 1
ORDINANCE SUMMARY - 9
Page 490