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1982 11-22~ __ /~~~uL~e--// ~ ~~ ~ ~ ~e°G'DfjGL 5 k • .O ~• o 1~1 E'er MERIDIAN CITY COUNCIL MEETING ~ a V ~ F•i Before ~+ MAYOR JOSEPH GLAISYER LaWana Niemann, City Clerk Grant Kingsford ~ [.y Ron Tolsma - Rick Orton Bill Brewer Q • w H ~ ~ Location: Meridian Primary School 48 West State Meridian, Idaho ~ Date: November 22, 1982 ~ d; Time: 7:32 p.m. ~ w H THE COURT REPORTERS T U ~E R & A550CIATES O 605 West Fort Street Boz 1625 Boise, Idaho 83701 Telephone (208) 345-3704 SPEAKERS. PAUL QUONG W. J. HARBECK MARIO DELISIO RALPH McALLISTEIt JAMES V. POTTER ROY GOODW~Di DON 'STOREY VICTOR..KUNZ KEVIN D. LODER DORIS OLIASOp RICHARD C.,WILLIAMS MARVTN 80DTNE -RON NAHAS JAQUES GOURGUECHON CO~LIN CONNELL MONTIE RALSTIN, JR. Z ~~~ 1 ~ ?. v s~ i ro J ~ ~, ~~~ ~ ~ d ~ Y. "'~ !f _ -` `+~ ~~T~_ A S ~p ~ f ff , E~~-. I -f f l 1 3 l S ~ G ,t~ 's u ~ 3i' ~ i. ~ ~. l ~ A s. ' ~ f N ~ '. ~ :NS' ~ ~ ~ :~~ a ~ '~"` ~ 3 z~l _ f ~ ~ ~' . } v . r c k • ~ y. ' ~ ~ . 3 ~~ w„ - ~ .' ~,{r ~N~jn'~j F T~y~ ' ~,. 'Rk~ d i'v"' ~ y f ~ : ,tr ~ ~ ~ •~~~ ~~~S~ n i ~~ ~ j '~ ~ -f; ~ ~wFr - _ - ~ ~k~y'F~ ~ 7 ., p '1? y' f ~~ ~ ' ~~_ s i ;.~ ;F g ~ \ ~f' '~ ~ ~ F Y; 3c s X ~ ~ ,~' 1 }~ ~~,:. ~ t ~ ~5 ~.Y~ ~~ a ^ J ~r E~ a ; ' -~~d _ _, ; ~, x , ~,' r ~z ~` ~ ~ ; ~ ~y ^ y t y ~y~~/~ er MF~ 4 ~ yy • ~~ ~~~r~ S fi i ~ ~ ~? y ,, 4tS ~ dJ` ' _ ~ ~, ~ M1.~~{-r T?~ ;~ . ~ „r l ~ ~ * ~ _ ..~ iy~ ~ k ry r ~~L.ti . S r ~ - - !~ P~ ~ 1~~ i ~ ~ _ ~ ~ i \} -# fi '~ " t f r, ti ~, ~~ } ^~ ~ `~E4 ~ ~ ,~ ~ ~~r. ~" ti's ~ a ~ ~: ,'. ~ } Y ~ ~ eS~ , L f' ~ i 5 , ~ a ~ . - - `SS` i 2i.,i } L` _ •~~ "~ ~, ;- fY > ~ t~~ '2~ s 7 ~3 l i .k ~~,( 1h . 3~ rai ~ - 1~L. - 1 f ES~ 1 • • • • • • • 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MERIDIAN, IDAHO, Monday, November 22, 1982, 7:32 p.m. MAYOR GLAISYER: Good evening, Ladies and Gentlemen and welcome to the second public hearing for the amendment to the comprehensive plan and for the first hearing for the annexation of the Paul Quong request for a regional shopping center at Eagle Road. City Clerk, I would now entertain the roll call. MRS. NIEMANN: Mayor Glaisyer. MAYOR GLAISYER: Present. MRS. NIEMANN: Grant Kingsford. MR. KINGSFORD: Present. A1R5. NIEMANN: Ron Tolsma. MR. TOLSMA: Present. MRS. NIEMANN: Rick Orton. MR. ORTON: Present. MRS. NIEMANN: Bill Brewer. MR. BREWER: Present. MAYOR GLAISYER: Can everybody hear without the microphone -- or is it better with the microphone on? A VOICE: Yes. MAYOR GLAISYER: We will start our openings for people who wish to speak. If. you have not signed up, ~ i ~ 2 C~ • • i • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 would you please go to the back table and sign up to be a speaker this evening. The first speaker tonight is Mr. Paul Quong. PAUL QUONG, came forward and gave the following statement: MR. QUONG: Thank you, Mr. Mayor, Gentlemen of the City Council. I would like to make my presentation in two parts this evening; one in regards to the comprehensive plan change, and the second in regards to annexation and zoning. I am respectfully requesting that the City Council adopt the changes as recommended by the Planning and Zoning Commission due to the following reasons: One is that the comprehensive plan as described on page one is not a product but a process. It's an ongoing process for directing changes that occur in inevitably in the community. It's not a document that is written once and for all, but it's a thing to be used to guide a City for changes as the City progresses from one point to another. I also urge the adoption because it meets the ~ L ~ • 1 2 3 ~ ~ 4 5 6 • • • • • • • 7 8 9 10 11 i2 13 14 15 16 17 18 19 20 21 22 23 24 25 3 policy and goals of the City of Meridian as set forth on page 8 of the Meridian comprehensive plan; that is, to become an economically self-sufficient community in this valley. It gives Meridian an opportunity to control the development and land use of the property around the Eagle Road interchange and the land adjacent to the freeway between the freeway and Overland Road. Ladies and Gentlemen, this is your window to your City. You should control it. You should know what~s going on in that area and be able to dictate what goes on in that area. Even if a regional shopping center cannot be developed at the Eagle Road interchange, your new interchange enterprise area of designation on your recommended change on the comprehensive plan will help achieve the goals of Meridian. Because with a new freeway on and off ramp there will be additional buildings and construction that will take place as I have seen it happen in many other parts of the country. So therefore, based upon the above, I recommend to the City Council that the comprehensive plan change be adopted as presented to the City Council. As far as the annexation and zone changes are concerned, I would like to request from the City Council • ~ ~ u ~ 1 2 3 • ~ 5 6 • ~ 8 9 ~ 10 11 12 ~ 13 14 15 ~ 16 17 18 ~ 1g 20 21 ~ 22 23 24 ~ 25 to annex and change the none at the Eagle Road interchange to give Meridian a second chance for the development of a regional shopping center in the City of Meridian. The reasons why, because I believe that the department stores are the ones that's going to be making the decision, and it is apparent that they are not interested in the Meridian Road interchange at the present time as they have not been in the past. And to expand on that particular area, I would like to call Mr. Bill Harbeck to speak to you folks in that regard. He has basically been the head of the development and construction for Wards Department Store in Chicago. He will give you a look and presentation and a view from the department store's side. Bill? J 5 • • • • • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1b 17 18 19 20 21 22 23 24 25 W. J. HARBECK, came Forward and gave the following statement: MR. HARBECK: Thank you. I would like to introduce myself a little bit more, if I may, because I think it will have some bearing on what I have to say. I recently retired from ~~dards after 31 years with the company in real estate and related areas of the company. The last 12 years of my spending with the company I served as Vice President of Facilities Development in complete charge of all corporate real estate, design, engineering, construction and market research activities. I also served as president and chief executive officer of Montgomery lards Properties Corporation. I~ow, in these respective capacities I personally developed- or managed the development of over ~0-million square feet of retail store space or related facilities, and in the development as a corporate partne r of approximately twenty regional shopping centers. As a department~~store occupant, I have participated in the development of an additional 175 shopping centers approximately. ~ ~ i t • 6 C~ • • • • • • • 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 iT 18 19 20 21 22 23 24 25 Ism a member of the Urban Land Institute and member of the International Council of Shopping Centers where I served a maximum term as a member of the Board of Trustees, and also as a member of the Executive Committee. I currently serve as an active member in four other standing committees of the Council. Now, in these various capacities I have become well acquainted with all of the facets of the retail and shopping center industries with my counterparts in other major department stores within the country and with major shopping center development companies also in the country and abroad; and, of course, also in that connection, with their general strategies and objectives. ~Jith this introduction and with your permission, it is my intention to concentrate on the department store aspect of the question before you. While I obviously cannot speak for them, it would not be proper, I can speak as one of the department stores for I just left them. I strongly believe that this is very, very important since by and large it is the major department stores, whether we like it or not, who will determine whether, when and where a regional shopping center will ~ ~ ~ • C~ • • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 be developed. That is even truer today in these very, very uncertain economic times. The development of a regional shopping center in the Boise market has been a long, somewhat tedious process. I can recall from my personal experience that this has been going on for a little over 15 years. And a market of this size, I think that's unparalleled in our country. Some of these serious people that have been involved in this effort are still involved. Others have become frustrated and have bowed out. And I have known each of these people personally. I witnessed this at Irdards. We were very seriously interested in the Boise market but gave up for other priorities. Now, there are some reasons for these frustrations. There are today and have been for at least 12 years. Two sites are zoned and ready to go. And a number of developers have tried and have failed to develop it because they couldn't secure sufficient department store commitments, particularly -- and I 'emphasize particularly -- the mass merchants such as Sears, Penney's and Wards. Why do I say particularly? Because in ~ ~ ~ C, 8 C • • • • • • C~ • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 today's environment, today's shopping center complex, it would take at least two of these to make a regional shopping center in a market such as Boise. These two sites are, of course, the downtown Boise redevelopment project and the Meridian Road site here in Meridian. Not wishing to sound disrespectful, so dedicated and so stubborn has been the Boise administrative commitment to the downtown project that they did not listen to what the department stores mere saying directly or indirectly. And so other project opportunities were killed for lack of political blessing and, therefore, the necessary zoning. This damage could become permanent. Meridian, I belief, is -- and, again, respectfully -- is coming dangerously close to making the same mistake by its seeming resistance to the annexation and zoning 'of the Eagle Road site. And that's even after the State and federal governments have selected that site for the new I-84 interchange. If, as it currently seems to be the case, the City Council should prefer the development of the Meridian Road site, it should clearly recognize several things: That it's been there for 12 or 15 years with no department store interest exhibited during that period of ~ ~ ~ 9 • • • • • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 °6 17 18 19 20 21 22 23 24 25 time. It has been considered by a succession of developers who have all failed so far. A11 of this occurred during the period of time when shopping center development in this country was at its peak and, therefore, getting commitments was relatively easy. And, of course, during all that period of time both had an interchange and adequate zoning. Even the efforts of a good friend of mine, Mr. Melvin Simon and his associates, probably the No. 2 developer in the country today and certainly without doubt one of the most respected and one of the most capable of the development organizations in this country,, with its clout has not succeeded when thereafter the Penney's Company committed to the Cloverdale site which had no interchange, annexation or zoning, and thus joining Sears. Now, what does this all really mean? trJhat does this tell us? It's got to tell us something. From my experience, I think it tells us what is rather obvious. It tells us on the one hand that downtown has been declared inappropriate by the mass merchants, Sears and Penney's, as no longer being centrally positioned in the market, as not having adequate ingress and egress, and as not being a conducive environment for the sale of hard goods, and emphasize, • ~ ! C~ 10 • • • • • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 particularly, big ticket hard goods and that they obviously, therefore, prefer an out-of-downtown location. Developers tell us, on the other hand, that these same department stores have rejected the Meridian Road site as being too far out. For the Bon and, of course, Penney's, they also considered it too close to their existing stores in Nampa. Now, with these two extreme sites, I believe clearly disqualified as the regional shopping center site. And I don't believe there is serious doubt in anyone's mind that there will only be one regional shopping center in this market. We're left with what is in between: Eagle Road, which is in the Meridian sphere; Cloverdale Road, which is in the Boise sphere; and the recently ressurected Cole Road site, which is also in the Boise sphere. In general, all department stores want to get as close to the center of current and projected population as is possible. Of course, assuming proper size and access. With Meridian Road, thus disqualified, that leaves only Eagle Road at which has the size, has adequate access, already approved as the only practical opportunity for a regional shopping center in Meridian. 11 • ~• • • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 It needs only your approval to amend the comprehensive plan, to then grant annexation and zoning. Tt would then be the only intermediate site that could meet all of these requirements. Now, certainly Cloverdale and Cole Road are further inboard, but they are in the Boise sphere of influence, and they each have serious physical problems. Cloverdale Road has no access off of Interstate 84, and none in site. Cole Road lacks proper or adequate size and faces massive ingress and egress problems with a hazardous interchange situation. Though, of course, this might in the years ahead and with tremendous expenditures have to in the allotted time be corrected. It too is not yet included in the comprehensive plan of Boise. Now, I want to emphasize that~it might be accomplished, and it would be P9eridian's loss eventually. One very important question remains to be answered. With these serious physical problems facing the Cloverdale and the Cole Road sites, why does the Cloverdale Road site boast commitments from Sears, Penney's, ZCh2I and Lamont's. Now, Sears might be explained away as being made prior to the interchange decision, but that's not • ~ • • • • C~ • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 12 true of the other department stores. I submit that the answer should be obvious. It was to me. They were not making a decision to physically locate at Cloverdale Road. That would be foolish under the circumstances. Rather, they were making a decision not to locate in either downtown Boise or at the other extreme, at Meridian Road. And they thus relieve themselves of the heavy pressures that they were receiving from both of these two extremes. In a sense, they signed an insurance policy to align themselves together on whichever in-between site could finally meet their qualifications. They have a profit motive, and they will make the decision. While, as I said before, I cannot and I do not speak for these department stores, I feel confident that I can still speak as one of them. I dust left a short time ago. I can honestly tell you that I would have done exactly the same thing they did, under the circumstances. They may not have spoken verbally, but they have spoken very clearly by their actions. I do not believe that you want to lose this project to Boise; by default, that is. Eagle Road is in the best position to capitalize on this current situation, to overcome the longstanding confusion and ' • • • -~~~ ,ti ; :- - 1 frustration. that has existed. t,.-" 2 ,~ I urge your prompt enabling action iii '~fi's.~~. 3 area and to give these people an alternative snd~to,~~t - 4 them then mare the decision that. they feed tr~ #~s. ~;;;~ 4~~ ~ ~~ 5 their needs. - ~. ' ~/ ; _ i i a 6 Thank you. ~ ~ ~ ,~_` ? `; ~ ~ ., 8 _ ~ ~ , . i i 9 ~ :;: ~ ~,~ 10 , 1 1 - -` ' ~, 13 -- ~ ~ ~r •J y.~ . ~ f ,- 14 °., 15 f 16 - _, ~.. -~~ _ ,.~ b 18 ~ ,:~, ~ ~ ~; ~; " 19 ~ ~ ~. 2 0 ~ `r 21 ~ >, _ ~ ~` r~; 2 2 ~ . 23 r _ ,; 24 ,- ~ , 25 . b - ., ~. ,~ ~„ . ~, . ~ . _~ .. ~. s 14 s f • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 i7 18 19 20 21 22 23 24 25 PAUL QUONG, came forward and continued his statement as follows: MR. QUOPdG: Thank you, Bill. Ladies and Gentlemen, I would like to point out some positive aspects of our development of the regional mall at Eagle Road. Things that I have said in the past is that: Our site will pay for an interchange. We have committed to pay $4-million to the State for the development of the interchange at Eagle Road. We have agreed to bring utilities to that area which would serve not only our project but in the future will serve the technical park development that is on the south side of the freeway. trJe will bring employment into this area so that we will meet the policy goals of the comprehensive plan; that is, to provide employment to the people in this area. 4de~re talking about two thousand permanent jobs after the center opens, five hundred part-time jobs for the students here in this school district. We will bring many people throughout the Valley into the A7eridian area, but without bringing in your traffic congestion to your Old Town or downtown ~ ~ i 15 • • i • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 area. You presently have about ?,500 vehicles a day going through town. In shopping malls located at Meridian Road, dust for Phase 1 will bring in another 15,000 traffic -- or cars per day. When the mall is fully developed out, that will bring in another 22,000 cars to the area. It has been estimated by our competitor's own engineering study that there will be 77,000 car trips a day generated by the mall. A good portion of that will be coming through downtown and yet there is a lot of traffic now at 7,500 cars a day. Another benefit that this will create is an enlarged base for taxes for this taxing district. Now, I would like to call in a consultant to enlarge on this point. I would like to ask Mr. Mario Delisio to address this particular issue. Mario? • ~ 16 • • • • 1 2 3 4 5 6 7 8 9 10 11 12 i3 14 15 16 17 16 1g 20 21 22 23 24 25 MARIO DELTSIO, came forward and gave the following statement: MR. DELISIO: I am Mario Delisio. I am a location site analyst and urban geographer of Boise State University and Director of Professional Business Consultants. I have been looking at and observing and studying the situation in Boise Treasure Valley since the mid-1960's when the whole concept of urban renewal, in downtown Boise and then later on with the ideas of putting malls in Meridian or along the freeway. I, Based on my study since the~mid-1960's, I have looked really in detail at all of the aspects and all of the parameters in all of the sites, and based on my independent analyses felt very strongly that the site that had the most positive attributes was the Quong-4latkins site at Eagle Road. Based on that, Quong asked me to share with you some of the information and data that we have been able to accumulate and to gather in our studies, some of those. Particularly, the area that Mr. Quong asked me to address were areas where the questions that have been raised by the Mayor and people on the Council and ~ L a 17 • C: i i • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2S some of the others that have been concerned. One of the things that I observed is, there has been so little data base presented at meetings. There has been an awful lot of emotional response, but really very little data. And the position that we have tried to establish for this presentation and for Mr. Quong is to establish some kind of sound data base. And that~s what I want to share with you this evening. I gave a small preliminary statement to Mr. Quong during the first part of November which was meant to give him a little bit of clue of the direction we were going. Tonight we have the accumulated results, ' really, in terms of a final report. Let me address the issues that have been raised in the past and in the present by people on the Council and others. One of the mayor questions has been this need.. for fire protection costs, What~s it going to entail, What are the costs involved. Somehow the view has come about that with the development of the mall there is going to be required a full-time fire department. Now, our studies have shown that this is not the case at all. And I will elaborate. The second point was police protection needs ~ ~ 18 • • C7 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 and costs relative to the mall. A third point, property taxes and effects relative to the project; that is, What is going to happen to taxes, What is going to happen to the income that is generated by the mall. The effect of the 50 percent or $50,000 homeowners exemption is an area that we investigated too. Let me share with you the results of our studies. First of all, the costs of fire protection will be minimal on the City of Meridian in a number of aspects: No. 1 , we all know P~9r. Quong has offered to build a fire station and supply a vehicle. No. 2, the continuing costs, manpower, what II have you; this can be alleviated by adopting the Moscow, Idaho Volunteer Fire Plan in which they utilize University of Idaho students. The system has been in usel in Moscow for a decade; it has been very successful. The students are highly competent and effective. They serve in a number of capacities. Their effects are enormous. First of a11, the system, which will be elaborated on after my presentation, the system helps to reduce response time enormously. The students can live above the fire station. You have 2~1 hour coverage. The ~ ~ ~ 19 • i • C~ • 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 costs are minimal because the students are provided with rooms and Chief McAllister will elaborate further. Another point is the fact that the track record of malls in terms of fire hazards, the track record is excellent in terms of not having fire hazards. They are built to the latest and highest codes. kle have investigated malls locally and throughout the United States and without reservation the mall managers, the security and the fire officials involved have given malls a clean bill of health. Their track record is excellent, and really they present practically no hazard at all. One of the benefits of having an additional fire station in the area is the fact that -- you see, the fire station is not going to be serving only the mall; it is going to be serving the community. This does a number of things. First of all, you have got two response systems. You have a backup for the downtown, and the downtown has a backup with the auxiliary station. In terms of saving property, this is going to be enormous; and in terms of saving lives, you cant place a value on it, although no real cost to the City. Costs that the taxes that the Quong project will generate will easily pay -- more than pay for continuing costs for ~ ~ ~ a 20 • • • • C~ • C7 • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 29 22 23 24 25 the fire station. There is gust no need and there is no evidence, Folks, that a full-time paid fire department costing a half a million or three-quarter million dollars, there is no evidence that they exist. The evidence is to the contrary, and tae will present evidence of a model that is efficient, competent and cost-effective. Tn terms of additional police protection, one of the things that we have found out in our investigation, we have gone to Karcher gall; we have also investigated the irJoodfield Mall in Shaumburg, Illinois, I the largest enclosed mall in the United States, according ', to their claim. The incidents of calling police to Karcher Mall, according to their security, is less than about -five times per month; not more than five times per month are the Nampa police called to Karcher P9a11. Karcher h1a11 has three security officers; they handle virtually all of the security problems. Most of the security problems are shoplifting, and only about five times are the calls serious enough that the Nampa Police Department has to be brought in; five times. The Woodfield Mall in Illinois has a population serving somewhere in the neighborhood of ~ ~ 21 • • • C~ • 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 8-million people but 2-million square feet, and their track record, again, is extremely low. Very low. And you can investigate the two malls in Moscow, Idaho: the Empire Mall, the "Faleese" Mall. All of the malls that we have investigated the need for additional police protection have been minimal. With internal security, adequately trained and communicative, we find, to the shopowners -- if they will communicate with the shopowners and set up a system of communication, that minimizes the problem. The other mayor aspect is that they communicate with the mall developer in terms of lighting, parking, bicycle parking, entrance -- all of those factors where there may be possible problems. If security works with the developers, with the shopowners and with the local police department, the police needs are minimal. And in no way can we see a need for adding to the Meridian Police Department. Mr. Quong is going to have, and will provide, internal security. One of the things interesting, too, at Karcher Mall: A11 three of the full-time personnel are also reserve officers. So they are really integrated in the Nampa Police Department. In terms of Meridian, this will also give 22 • • E] • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 employment, part-time employment, to Peridian reserve officers. It will also help to solidify the bond and communication between the developer and the Peridian Police Department as well as the City officials. In terms of taxes generated by this project, in hearings that I have attended I have heard numbers as low as $17,000 a year, and I think the highest that I ever heard was $80,000. ~~Je investigated with the Idaho State Tax Commission, and ran through the figures and the numbers and came up with the data. And based on a $90-million II market value, the Idaho State Tax Commission is talking in terms of the Quong project generating something in the neighborhood of $860,000 a year; not seventeen, not eighty, but somewhere in the neighborhood of $860,000, an enormous amount of revenue that can be here. The revenue will be used for budgetary needs, and also because the budget of Meridian is somewhere around, what, $1,300,000, that can be used to help alleviate some of the property taxes. It can provide tax relief. The fifty thousand or 50 percent homeowners exemption, what's the effect in the community. Okay. According to the Idaho Planing ~ i i 23 • • r~ • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Association, they commissioned a study by 1Jhitney & t~Jhitney consulting firm giving the idea of what the 20 percent or ten thousand did. Statewide, $5.2-million in property taxes were shifted away in 1981. «ith the 50 percent of fifty thousand it would have caused a further $18-million in shift. The homeowners property taxes are being reduced. The burden is being shifted to another sphere. The community needs development like Quong~s, Quong-6aatkins project, to take up the slack where the homeowners exemption is providing relief. The "mining" has to come from a commercial interest to support the needs of the community. And this one will. So, in summary, basically what we have found out is, No. 1, there is no data and no need for a full-time paid fire department with the Quong-tiaatkins project. 6ae have a model that works; the you models are extremely well built, a minimal need, minimal major hazard, police department needs with internal security and maintenance communication is all involved. The Incidents are low in areas of, like, Karcher I~1all, and even one of the largest ones. The taxes generated are enormous; they are not on the micro scale that have been talked about, so ~ i i [~ 24 • • • 7 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 their impact in the community will be great. And the 50 percent homeowners are going to shift the burden, and .M r. Quong's project is needed to help. Now, in terms of traffic flow, I want to say one other thing, the question of the effect of the Nahas site and the Eagle Road site. In a letter that rlayor Glaisyer wrote to Roger Powell on July 30th, 1981, he made note of the fact that he really wanted the Eagle interchange developed because one of the major problems at that time was just the sheer numbers of traffic coming through Meridian. With a major mall at Meridian Road -- and you want to see traffic, you will have traffic. With the site at Eagle Road, there are a number of options to alleviate traffic. It won't all funnel through downtown Meridian. ', Another major point is the effect on downtown) businesses. In one of the fictions that has been passed around is the fact that the Eagle Road site will somehow impact downtown greater than the Nahas site -- somehow the Nahas site would seem to make downtown great. The real gravity that we find is the fact that the Nahas site is so close to downtown, shoppers will pass through downtown to go to the Meridian site; it's just too much of a magnet. ~ L ! 0 • 25 • C~ n .~ • • 1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 1~ 19 20 21 22 23 24 25 The relative isolation, however, of the Eagle Road site makes it such that, No. 1, people will have to deliberately want to go to the Eagle Road site. And with its relative isolation downtown, that they will maintain itself with some kind of identity and as a commercial oenter. The Eagle Road site will not hurt to anywhere near the extent that the site at Meridian and I-34 will. It will have a mayor impact on the businesses. At this time, I would like to show some slides dealing with the fire department, the model that we suggest using University of Idaho students in Moscow, and here using Boise State University students. One last comment I want to make is that, if you look at the comprehensive plan, you can see that not only Mayor Glaisyer's letter, but also the diagram that is featured there, one dealing with services -- high tech services -- it is very clear and obvious that there has been intent all along to develop the area. Somehow it's been the illusion in the past that the area is going to be pristine; in reality, the intent in the comprehensive plan is to develop the area, which means that the intended services will ultimately -- though there is no addressing that the developer is going to pay for the mall, that the intended services will be ~ , ~ 26 • • • • • 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 taken care of. The area is programmed to be developed. Quong-Watkins site is the best development, because, No. 1, he is going to pay the costs; No. 2, it can be argued the safest and highest and best use of the land. But the area is meant to be developed, Folks; it's not meant to be primeval. I do want to show on the opaque projector first, and then I will introduce Chief r1cAllister. Here is what we are talking about. Irle have the Interstate, the Meridian Road, Eagle Road. Here we show essentially kitty-corner from Quong-l~latkins site we can see that we have intent for development here, ah igh-tech technological area. The whole area is -- the area here is planned from the beginning to be developed; it is not meant to simply sit there. So the Quong-ddatkins proposal is not something out of the norm. It is in the area that is planned to be developed. In terms of fire hazards, technological or industrial park is much higher than a regional shopping mall with all its fire preventative materials and construction. A high-tech area would prevent much greater risk; besides that, nothing has been addressed in terms of developers providing everything. Mr. Quong is going to provide all of the ~ L ! 27 • • • • L i • • • 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 connections and the fire equipment and the police equipment. Let me put one more on there. So here we have, if you can read it, a couple of points. July 30th, 1981. Okay. Here we can see it's the policy of the City of Meridian to encourage and provide development of an interchange, a plan further to address the quality and development of a technological park. So the area at the interchange, you can see, has been planned for development. Secondly, we address the question that its imperative that the Eagle site is selected at this interchange would relieve northbound Highway 55 traffic which is currently being routed through downtown 1~9eridian. Traffic is a burden with the present situation and with the enormous traffic being funneled through to the Meridian mall site, you haventt seen the traffic yet. The Eagle site would alleviate, would have much less of an impact than at Meridian and I-84. At this time I would like to have Chief Ralph McAllister of the .Moscow, Idaho Fire Department make his presentation. If we can have the lights on temporarily, I A 28 • • • • • • r • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 '17 8 9 0 1 2 3 4 5 will set the slide projector up and then introduce Chief McAllister. So if you can give me a few seconds, please. lJe have asked Chief Ralph McAllister, the Fire Chief of Moscow, Idaho Fire Department to kind of communicate to us the history that they have had and the impact of malls, fire protection in the Moscow, Idaho area. Chief McAllister is the president of the 4destern Fire Chief's Association, a member of the Moscow ;Fire Department since 1955, recipient of the Distinguished Citizen's Award in 1975 and listed in Who's Who in 1975.. At this time I present to you ~ Chief Ralph McAllister. Thank you. ~ I ~ ' 29 :~ • • ._ • n .~ C7 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 RALPH McALLISTER, came forward and gave the following statement: MR. McALLISTER: Thanks, Mario. After that, I don't know whether you have introduced me or not (laughter). My purpose hear is not to probably quite convince you to make a decision whether you should have a mall or whether you shouldn't or where you should put it. But I think my purpose here is to explain to you about the Fire Department we use in Moscow and how it can work, how it has worked for several years and is still working and is anticipated it will continue to work as a volunteer fire department. I think Mario has some slides we made up there at the Department to try to explain a little bit for you, and then maybe go through on dust exactly how we operated and why it's working for us and try to give you an idea that a volunteer fire department can provide fire protection. This is the main station in Moscow. This station was built -- the right-hand side of it was built in 1827. And the other side, you can see, was built in 1954. It was finished in 1955. This was built with volunteer funds. It's ~ i ~ 30 • • C C C~ • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 owned by the volunteers, lock, stock and barrel. The City does not have a penny into it. No tax moneys involved. This is some of the equipment in it. The truck right in the middle there happens to be a rural fire district truck. ti~Je maintain the rural fire district out of the station as well as the City fire truck. They both run in the same administration and we use the same people for the rural that we use in the City-. A VOICE: Excuse me, Chief. Could you talk a little closer to the microphone; T'm having a little difficulty. MR. McALLISTER: Pardon me. I'll turn around here so I'm talking into it. I'll say it again for the people that didn't hear, that we do run the rural fire district out of the same station as we do on the City, and also with the same personnel and the same administration. This happens to be the alarm center upstairs in the main station. We have capabilities of doing the dispatching either upstairs or downstairs; it doesn't matter. And it's small, compact. The console itself is in the main bay station just downstairs. This is a console which is used • 1 31 • • C C ~' • • • • • 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 upstairs for dispatch. This happens to be out at Station 2, and we will get a little bit into the student program in a little later bit here, but this is where the recreation rooms are out there and also off to the other side is the kitchen that's used out there for the students that live at the station. And they do their studying there. This happens to be the upstairs in the main station you have seen before, the recreation part. That happens to be one of the University of Idaho students that lives with us. Back there you see the doors to the rooms that we have there that they live in. Entertainment is provided. Those of you that noticed the "barricades" -- remember, I told you that the station belongs to volunteers. The City cannot -- can't have miracles. They don't sell it. This is one of the students; he is sitting at a downstairs desk with the alarm system and with all of the dispatching right there, notice above his head there on the right-hand corner is an automatic alarm system board there that we have. Every one of the mall stores are tied into it; we have the campus and whoever would like to be tied into it. And again, the dispatch man calls out of right here. ~ ~ ~ 32 • • • • C7 • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 By the way, also the dispatcher that is on duty at night sleeps in that office so we have got 24 hour coverage at the automatic board. Here's one of the students' rooms and closets that are provided; they turn out here by the door ready to go. One of the students' rooms; two students to a room, bunkbeds. The typical housekeeping of students, but we have no problem with them. They do a pretty good fob. They are responsible for their own linen, bedmaking, house cleaning. This is the exterior of Station 2 and -the training tower. This training tower was built and finished in 1966 at a cost of about thirty, thirty-five thousand dollars of volunteer moneys. The station there itself, main station, was completed in 1972. It cost about $90,000 for the main station and it has rooms in it, about four University of Idaho students out there. That building was built with half City funds and half volunteer funds. ~i45,000 each. A better shot of Station 2. L~Je also house some of the rural equipment out there. The tanker you see there, the inspector's car, ambulance. The interior -- by the way, the ambulance 33 • • • C C~ • • • C~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 service is fully owned by the volunteer fire department. Therets not a dime in it of tax money or subsidies in the ambulances. The Fire Department runs the ambulance service on volunteer labor. And repairs, fuel and department vehicles go to the City shop. They bill us every month; we write them a check to pay for it. The ambulance service has three fully equipped ambulances. Like I say, it is totally operated by the volunteers. No tax funds are involved. For training, we have certification. This happens to be one of the ones we had just rewritten for our training program, and these people that you see here on this particular slide are those that are starting out for the fire science degree, so their records are kept as they get their attendance past a certain level. We have prescribed a training program for thee, students as well as volunteers. They are required to take a certain amount of training. MR. DELISIO: That~s all, Chief. Could T have the lights, please. MR. McALLISTER: Ind like to go ahead and explain just how our system works. It has been working for years and years and years. The Fire Department also was organized back in 1892 as a volunteer fire department. ~ i ~ 34 • • • • L • i • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 It is incorporated, registered with the State of Idaho and is still volunteer. Ede pay no small pay; no pay whatsoever. And the service is self-supporting. Rloney is to purchase the ambulance, to the fire station. That is operated by the fire department. The student program that we have, we have used students in there -- in fact, they were there when I 0 first had gone there, and I think they have been there for years. When the first part of that station was built, they built some rooms up there to house live-in people. I think when it first started, why, some of the firemen -- bachelor firemen lived there. And then the student program came along, and we started taking in University of Idaho students. This program has worked real well for them. Very well. We turn down more students, I think, than we take in. Right at the present time I think at me desk I have applications of about ten students wanting in. They're up for next fall. The place is full now, and it looks like it will stay full. Last year we had sixteen students in there for the summer. It stayed clear full. Those students are required to take the same training as a regular volunteer fireman. A lot of those ~ ~ 35 • 1 students come and they stay with us four years. ode have • • • t • • 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 had them stay as long as seven years. We have had four brothers in one family there at one time. Students are trained and they operate all the equipment, trained to fight fires. They are required to take the basic thirty-hour course. They are required to take any other training courses that we lay on them. And I mentioned a while ago, we have dust rewritten our -- rewrote our training program, and this will be put into the requirement when they come in; particularly, in the driving and communication part. They are to respond with the equipment. They're the first responders by having those students live there, where they are out the door in one minute or less, and generally at a place of business district and the towns precinct, why, they're there within two or three minutes and set up there to fight a fire. The training is in all phases of fire fighting. They operate pumps, start to the fire base with the volunteer truck. Actually, the students are some of our probably better fire fighters. We have paid them with a room; you have seen them in the picture. That~s what they get from us, except for the training. I would mention also that we have had times ~ ~ ~ • 36 C7 i • • 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 where those people go on through to be professional fire fighters and made that their life work. As far as the program, the training, they are run through a screening process, letters of recommendation, character references, this type of thing, from home. Not their family, but other people who have known them. They are run through a private interview. They are required to take the training and in the screening process we have had very, very few students that have given us any problems. I think in the past .ten years or better we have asked two students to leave, which were minor infractions -- or one was a minor infraction and °one was afraid of fire fighting and afraid of the equipment. But, again, the students have really worked, getting no pay, and then turn around and get more applications to be taken in. Now, in reference to the mall creating problems for us, we have noticed no difference. The mall is generally now being built to code. There are sprinklers, internal alarm systems, generally a lot of them tied into the fire stations. Our calls have not increased because of the mall. In fact, I don't think that we have had, as I r 37 C: f t 1 s 1 2 3 4 S 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 recall, a fire call to the mall. We have had system malfunctions, and you will have that many times when you put in a new system. You~re going to have a system malfunction. But we have had some close call threats. But I think I can recall they werentt all from smoke being present. That was the balance of whether or not the smoke got into the air conditioning system and got down so that they got alarmed -- in fact; the alarm would not go off at all. But it has not created a problem for us. 1~Je have not had to add people to the process. Were still static in our membership. And the calls that we have had, they dontt create the problems. The older building s create more problems; chimneys create more problems. We also furnish the fire protection for the ' University of Idaho. And I imagine we have more calls -- I know we have more calls up there than we have anywhere i in those malls. As I say, I know the malls have been there three, four years. We have had no fire calls out there, no fire loss at the mall. That is not creating a problem with us. In fact, those buildings are good, well built, by code, of course, we have the the Life Safety Codes, the Uniform Fire Code, the Building Code, R1echanical Code, Electrical Code, Plumbing Code, and this 7 ~ ~ 38 • t • • i • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 type, adopted in the City of Moscow, and they are important. .The building is built to Code when they're put up. They create a lot less problems than the older buildings create. I think probably the best way -- I can probably rattle on here for a long time and probably not answer any of your questions. If somebody has a question -- for a couple of minutes if they want to ask any questions, maybe I can answer them for you. MAYOR GLAISYER: Grant. MR. KINGSFORD: Chief, what is the size of the malls in square foot? MR. McALLISTER: I don't have that exactly. But we do have 66 stores in the two malls. ' MR. KINGSFORD: Are you familiar with the ~i Cherry Plaza here; are they any larger than those at Cherry Plaza? MR. McALLISTER: Maybe Mario could answer that question. If the larger store -- MR. YOU NT: About half -- roughly half the size of the property we're talking about. MR. McALLISTER: But, again, all of them are with sprinklers. They do have both the stores there tied into, alarm systems. And we have had no problems with it. ~ L ~ 39 • r • • i i C~ 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Thank you. PAUL QUONG, came forward and continued his statement as follows: MR. QUONG: Thank you, Chief McAllister. Ladies and Gentlemen, we do have an alternative also, if the City of Meridian does not want an all-volunteer fire department; that will be presented at a later time. In closing my portion of the presentation, I once again urge the City Council for annexation and zoning of the Eagle Road site to give Meridian an alternative for a regional shopping center. I think that with the second site designated as the enterprise area, Meridian will have a better chance of getting a regional mall in the near future. Thank you. MAYOR GLAISYER: Okay. The next speaker will be -- and when you come up, please repronounce your name so we can get it right. It's Marvin Rebsin. (No response.) MAYOR GLAISYER: Okay. We will go down to Jim Potter. f ~ ~ ! 40 • • • • E 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 1~ 19 20 21 22 23 24 25 JAMES V. POTTER, came forward and gave the following statement: MR. POTTER: Mayor Glaisyer and Councilmen, I am one of Paul Quong's consultants. We have and would like to submit to you this evening two documents. One is a document which we submitted to the Planning and Zoning Commission in July of this year regarding the proposed comprehensive plan amendments. This document includes excerpts from the Idaho Code relating to the preparation of a comprehensive plan or amendments and specific comments to several items at. the request of the Planning and Zoning Commission and its development and its relationship to those items. This includes the developments, relationship or impact to population, economic development, land use, hookup facilities and services, transportation, housing, community design, environmental considerations and implementation. Also in this document is some information which basically has been repeated by Mr. Delisio regarding the impact on the property tax. It has in it our analysis of the property tax implications for the City and the Meridian School District, public testimony that was provided by a couple A 41 r 1t 1 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 of people, particularly related to property tax and sales. tax, and supporting documentations. The second document which we will be transmitting to you is this small document (indicating) prepared by our firm this past couple of weeks. Its a financial impact analysis of the estimated costs to the City together with the estimated benefits. This analysis is based on the folloa~ing: The sewer and water extension requirements were based on a study prepared by JUB Engineers for Mr. Paul Quong in July of 1981 and the sizes were amended to provide additional oversizing of the sewer mains as has been previously discussed by the City. The unit prices for the water and sewer were obtained from McKay Construction Company. The sewer and water hookup fees were based on the wastewater flow analysis prepared by JUB Engineers in 1981 . The permit fee was compiled from the City ordinance. The sewer and water user Fees were based upon the JUB report. The property tax revenues were drawn from our analysis prepared from the information provided us from the State Tax Commission. • 42 i • i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 1- 8 19 20 21 22 23 24 25 The sealer and water operation and maintenance City operation and maintenance for these facilities. The cost of increased "police" protection was based on discussions with Officer Worley of the Boise City Police Department, Planning Division, and it was drawn from his analysis of impact for a regional mall in Boise. An additional officer and vehicle were added beyond that that was deemed necessary by the City of Boise. Increased fire protection. We discussed this with the Fire Chief of the City of Boise. His suggestions as an alternative to what Mario presented were that a part-time, full-member staff -- or, in other words, part volunteer and part full-time -- could be used; that if the City elected this method, that his recommendations would be a full-time staff of six people and the remainder of volunteers may be provided to the full-time people at both stations on a 24 hour basis. In addition to the recommendations made by him we added in a squad car and a pumper truck beyond what the department specified by him. He stated that because of the mutual aid, contractual wager between the various cities in Ada County, that some of that equipment ~ ' ' 43 t i C-~ i t • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 may not be necessary. Our analysis indicates that the City of Meridian could expect a benefit cost ratio of 1.86:1, or $1.86 revenue for each dollar of costs that Eagle Road mall would generate. aJe have based this, dust in brief, on the following: estimated construction costs of the sewer and water to be extended to the Eagle Road mall site would be approximately $794,000. Although no monetary figure was assigned to this, the benefit to the City would be significant by allowing additional industrial, commercial and residential development to the east of the City at a minimal off-site cost and be a significant aid in balancing the general configuration of the City having the opportunity to have growth at the east as well as the growth you now have at the west. The sewer and water estimated hookup fees were taken from the JUB flow criteria, and the City's ordinance amounts to approximately $797,000. The building permit fees on $70-million, according to the City ordinance, would be $175,000. Those two -- the sewer and water and building permit fee -- would total $972,000. If this amount were invested in certificates of deposit at 12 percent, the annual benefit for the City would be $117,000. 44 C7 i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 The sewer and water user fee, according to the estimate prepared by JUB for a flow in the City ordinance would amount to $128,000 A year. The direct property tax increase would be $75,000 a year. To relate this back to our present situation so that we have a direct relationship to taxes now, assume that an increase revenue was available to the zero effect bond election -- that is, to hold the present assessment at a current level, rather than letting them reduce it, you would have -- under the growth factor of the one percent initiative, that would effectively be reached at a $95,000 annual infringement. Total annual estimated increase in revenue would be $390,966 a year. The estimated cash benefit of amenities offered the City, excluding the freeway interchange, would, therefore, be $450,000 a year. The estimated savings to the City in interest and principal if these amenities -- the fire station or a truck, et cetera -- were acquired through an eight percent bond election for thirty years would be $40,000 a year. The total annual benefits, excluding the secondary economic benefits of the interchange and 45 i • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 utility extensions would be 8455,000 a year. The cost to the City, sewer and water operation and maintenance, estimated 824,000 a year. Increase police protection adding, like I say, the additional officer and a car, their estimate was for West Park or the Maple Grove site, would be three additional officers and one additional police car properly equipped, less the differential. And that would be an average of $90,000 a year, less officer salary and burden rate differential -- that is, the Boise Police Department rate is slightly higher than we do. And their benefits were slightly more. Then adding onto that, the vehicle cost and operation, reducing that amount by the car and the funding of that car, since Mr. Quong has offered to provide it, that would add 883,000 a year to the Meridian Police Department study. Increased fire protection costs, if the City did not elect to institute a student type course, four volunteers and elected to go to part or full-time, adding six full-time students at $11,000 each, one part time • 23 24 25 secretary, five, salary burden rate at twenty percent, we would have a salary cost of 885,000. Out of that we have the squad car, 835,000, ~ ~ 46 • f 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 another tanker pumper truck, $120,000, miscellaneous equipment at $15,000, for $170,000. This again would require at eight percent for five years would be one hundred twenty-six -- or excuse me, $41,000 a year for a total cost to the City of $126,000 a year. It also should be pointed out that the City of Meridian and the City of Boise do have this mutual aid contract which would negate their demand for certain of this equipment. The total benefits estimated to the City are two hundred thirty-three -- cost, excuse me. Full cost to the City would be $233,000 a year leaving a net benefit to the City of $221,000 a year or a benefited cost ratio of 1.36:1. The total effect on the City budget of • i 17 18 19 20 21 22 23 24 25 $1,30,000 mould be an increase of non-allocated funds of approximately 17 percent. Also, I should point out that this income and analysis does not include several other mayor types of taxes that are a benefit to the City, such as sales tax which is minor in its significance, liquor and tobacco tax which could be very significant, revenue sharing fund, adjustment, another minor but still significant factor in the overall income of the City. !~ ~ ' s 47 • f • C7 i 1 z 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I would like to give each one of you a copy of this, and I'll close. MAYOR GLAISYER: The next speaker is Roy Goodwin. ROY GOODWIRI, came forward and gave the following statement. MR. GOODWIRI: Mayor and Councilmen, after hearing all these figures I don't know if I can speak or not. I dust wanted to say that I speak here as a taxpayer and resident of Meridian since 1944. I was elected on the Council in 1950 and spent two years, and I know the position these boys are in. And T would like to say tonight that I would dust like to give my vote of thanks for their decision and I know that they're going to make it for the benefit of the people like me and you that have to pay the debt from here on. And I'm not being envious of their decision; they might have to pay for it. Thank you. MAYOR GLAISYER: W. J. Harbeck. MR. HARBECK: I already spoke. MAYOR GLAISYER: Oh, excuse me. All right. Gordon Harris. ~ ~ 48 • C~ C7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. HARRIS: I didn't want to speak. MAYOR GLAISYER: Don Storey. DON STOREY, came forward and gave the following statement: MR. STORY: T urge you, the City Council, to approve the changes in the Meridian comprehensive plan. The A~leridian Planning and Zoning Commission, their hard work on the comprehensive plan and their designation of the interchange enterprise areas are to be commended. If plan changes are approved by the City Council, the Eagle Road/T-84 enterprise area can become a reality and Aleridian can reap the benefits of development and community improvements in the form of a regional mall or otherwise. The Planning and Zoning Commission's recommendation to you, the Council, should not been taken lightly. They have studied this issue and taken much into consideration. I disagree with Mayor Glaisyer's attitude on this very crucial development. It would seem to me that he is betraying a trust in going against the recommendation of the P&Z and the citizens of Meridian. ' ' ~: 49 • • t C1 • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Meridian's leadership must take a positive and decisive position and take care of these plans and changes once and for all. If the comprehensive plans are not approved, Meridian will be set back twenty years or more, and Meridian will end up a bedroom community. The people of Meridian will be the ones to benefit from the necessary comprehensive plan changes. Thank you very much. P~9AYOR GLATSYER: Si V~darden? Is that correct? (No response.) MAYOR GLATSYER: Vic "King"? MR. KUNZ: Tt~s Kunz. MAYOR GLAISYER: Kunz. ~ ~ 50 • i • • • • 1 2 3 4 5 6 7 8 9 10 11 1.2 13 14 15 16 17 18 19 20 21 22 23 2 ~- 25 VICTOR KUNZ, came forward and gave the following statement: MR. KUNZ: Mayor, Councilmen, my name is Victor Kunz, and I'm a long-time resident of the South Eagle Road area. I'm about two miles south of this location. After all the positive input tonight, it's hard to add much relevant data, but I'd still like to make some comparisons. As you know, downtown is still active. Nordstrom was in the news tonight. One of their considerations is that nothing happens elsewhere first. Nothing new. It's been seventeen years in that making. I believe the New Yorker magazine stated a year ago in an article that Boise is the first town in the western hemisphere that has committed suicide. I hate to see a void for Meridian in that light. west Park is probably a possible location. If sufficient compromise is made, Boise will be forced to embrace West Park. It's close to what they want, and I think that John Price is forceful enough that that location would fly ff those people are willing to compromise and make it happen. ~ i i 51 • • t 1 • a • • • i 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 It is not a good location. It has a lot of drawbacks as far as access. It's going to muddy up the Franklin access. And it's going to be some time down the road. We have a possibility for a clean access site at Eagle Road. It's not too far from Boise. In my opinion, if there were an ofF ramp on the east side of Boise up the free4ray, there's access for a location for a mall to be made on the east side. People will go to the freeway and go to the mall if it is within two or three miles. But this gives us an interchange at no cost to the taxpayers, access to the road to McCall and a benefit to the Boise area. I went through the Sunday Statesman and Larry Leisure's reasons for wanting tJest Park. And they could apply to this site for Meridian's benefit as well as they could apply to west Park for Boise's benefit. I see the reasons that Meridian has given for not wanting it, and they're the same reasons that Boise wants it. T know it's a hard decision, and I know you people are under a lot of pressure from different sources. No matter what you say, there are five locations and four people are going to be unhappy with . 1 ~ 52 • • • • • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 whatever is decided. But we need to compromise. Seventeen years is too long. It needs to be done. It's a good location. Meridian needs it. And I don't think it will hurt downtown Meridian. It's my request -- and I hope many of yours -- that this will be accepted into the Meridian plan. P9AYOR GLAISYER: Thank you. Next, I believe, is Kevin Loder. KEVIN D. LODER, came forward and gave the following statement: MR. LODER: My name is Kevin Loder, and first of all, I would like to ask the City Council: d~ihat's the big problem? We all fought so hard for the interchange at Eagle Road, and why? 4~e want to get the traffic out of downtown Meridian. Now you hesitate to let the free enterprise system work to determine where the regional mall should go. Perhaps it's best to restrict our chances in Meridian just to one location, and at that location, the one that would bring more traffic to downtown than the highway system would have ever brought. • • • • • C7 i 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24. 25 53 You know, let's reroute the traffic in downtown Meridian to one way; let's put it one way down Main Street and bring it back one way the other way and let's just write off downtown all together. T mean that sounds really good. It sounds great. In fact, it sounds so intelligent it sounds like downtown Boise. And it seems like the respective Mayors are playing the same role. And I'm trying to figure out who is representing whom. Now, if you're going to represent the citizens of Meridian, don't try to fool us by voting against something that we've said time and time and time and again that we want. You have heard the testimony at numerous public hearings on what the people want. But yet you seem to want to delay things. And I don't want to point to you specifically, because I know there is a lot of political pressure that's been involved. And the delays have been ridiculous; we have had one right after the other, like I have said. The political maneuvering has been unprecedented. Nothing in Meridian has ever reached this level before. The deception has been uncalled for and it's really unacceptable on this level. 54 • • • C • • • 1 2 3 4 5 6 7 3 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I mean look at the mockery of the Planning and Zoning Commission; four members resigning all at the same time, all with the same reasons: The regional mall controversy, the Quong-Watkins annexation. Their role in planning and zoning had been reduced to a 3oke, and they knew it. And that~s why they resigned. The services of these four commissioners is gone. They didn~t want to waste their time anymore. T mean after the aspiring politicians who got their toes stepped on and that are now the same ones that are dead-set on evening the score. T mean revenge. What a marvelous moral ethic. I mean its one that we should all live by, and die by. Or maybe they should live by and they should die by. Well, this is a public hearing and the public has spoken before and its speaking again tonight. The Transportation Soard wasn~t swayed with their decision. They chose Eagle Road. Donut let it sway you. Donut let Mr. Nahas or P9r. Simon or dir. Glaisyer or all of the attorneys and any of the other schemers sway you. Mr. Nahas said June ? that within 45 to 60 days we would hear the good news. And you know what; we sure chid. t ~ 55 • • • • C~ • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 We heard that Penney's, ZCN1T and Lamont's all committed to Mr. Price's site. Let's wake up before Boise steals the show. They are dust now pulling their heads out of the sand after 17 years of hassles, and now it's getting all screwed up again with the Nordstrom and The Bon wanting to go downtown. Now they don't know where they're going to go. They're going to have the blue ribbon committee come in with a totally opposite opinion on what they should do downtown. Mayor Eardley, you know he's .going to push for downtown development with the mall. So we still have a little bit of time. But we have already lost a lot of time. Meridian needs the mall. Your decision on the annexation isn't going to decide where the mall goes. The free enterprise system is. All you are doing is giving Meridian another choice. You know, with all these conditions attached to this annexation, if Paul Quong doesn't perform, we haven't lost anything. But if all we have is the Nahas site and he doesn't perf orm, we lost the mall. So I ask you, What's the big problem? ~ 1 ~ • • • • • i 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 56 Well, I'll tell you what the big problem is. Mayor Eardley has made Boise a laughing stock with the mayor retailers. And now you're letting our mayor make a mockery out of Meridian. Please take the initiative to stop this fiasco and get the show on the road. The vote will be close, but the public will see who is really representing their interests and who is representing themselves. Thank you. MAYOR GLAISYER: The next speaker is Doris Oliason. DORIS OLIASON, came forward and gave the following statement: MS. OLIASON: Mr. Mayor, City Council members, I would certainly hope that you gentlemen do not have preconceived ideas about how you're going to vote tonight like the County Commissioners and Boise City Council people did on the Emission Control Program. Because they had already voted for it at the APA level, which is the regional level, so they had to hold a public hearing, which I considered a sham, because the Ada Planning Association is a regional agency, it's another way of government over a constitutional L 57 • • • • • C7 • • • 1 2 3 4 5 6 7 8 9 - 10 11 12 13 14 15 16 17 13 19 20 21 22 23 2~ 25 government, and so they had to hold a public hearing at the lower level, which is what cae still think we operate under in this country. And so that's why they held a hearing. But, you see, they already applied for the federal grant to get the program going. Now, I say this and I mention this because I guess I have in-built suspicions about public officials, as much as I love them. Now, I want to bring out some things tonight that I think you people should be made aware of. And I might say if you wonder where I get all my facts and figures, I do research work. And it's very interesting where A leads you to before you get to Z. You always come up with the answer. And you have to do a little digging. And I have some information here tonight, and T also do research for legislators, for the Idaho legislature. And I have got loads of files, and I should get rid of a lot of them, I guess. But anyway, I have been trying for two years to get the total amount of money that has been spent for downtown Boise, and I want to bring out a few facts to you because the reason we are here tonight and the reason we have been here at every hearing is because of the ~ i ~ 58 • • • C~ • • • C7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 State Land Use law and the mess it gets us in, plus Boise is responsible for the mess we're in here in Meridian in trying to get something like this through. Now, I have tried for two years to find out from the federal government how much money has been allocated for Boise, Idaho, for the downtown development. For two years I have not been able to get that information because it is such a mess that nobody knows how much anything is. Well, the other day through Senator Steve Simms' office, I managed to get something that they haven't given me before, although I have a stack of material from the BRA that is about a foot high; but I do happen to have this. And maybe you all have it; I don't know. I didn't have it. But Senator Simms sent me this, and it's the Financial Background and History of Urban Renewal in Boise, Idaho. Okay. 1Vow, I want to start out with this; that since you people have decided that our farms should be the location of the interchange for the benefit of you, the public, it gives me and my family rather great concern with the economy getting worse all the time, that the way they have plotted or platted or whatever you want to call it, the off-ramp off of Eagle Road to our farm, • 59 • • i • • • • 1 2 3 4 5 6 7 8 9 10 11 92 13 14 15 16 17 18 19 20 21 22 23 24 25 we're going to come out the losers. It's going to be a long stretch. It's going to go through about three-fourth of the half mile. And it's going to come out on the other side the same way. And then on the west side we're going to have some sort of a loop thing. Okay. The State Transportation is holding off on what they're going to do pending what you people are going to do. So they're sitting there waiting, and so we don't know what to do. And naturally we're interested, before they level our house out there. Nora, Larry Leisure at lJest Park -- you know, the City Council is going to have a little hearing and try to figure out what it's going to do with him. But it is my opinion from my observations and from my contact with various people -- when I was on the Planning Commission i saw lots of things. And it is my opinion that anything Larry Leisure wants, Larry Leisure gets. So I have no doubt in my mind but that 6Jest Park will be approved. Now, you've got to understand, Folks, politics plays a big game here in all of this stuff. Now, this thing also says that Boise and the County Commissioners cooperate very, very closely. I would say the County Commissioners have cooperated so ~ i ~ • • • • • • • 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 60 closely with Boise City, that they've given Boise City everything it wants with their cooperation. And on page 25, to prove that I'm not just talking through my h'at, it says here: The influence of urban renewal in Boise has been considerable and ongoing. It has generated better rapport and communication betwee n the principal local government entities. The elected officials of Ada County and Boise City produce a steadfastly backed comprehensive plan that pinpoints downtown Boise as a location for the Boise trade area Now, another thing you've got to understand -- and I brought this out before, but I want to refresh your mind -- is that the urban renewal complex, the part they want to develop -- and I'm not talking about a whole urban renewal area, but the urban renewal complex that Wynmar got and half a dozen others, by judicial order has been taken off the tax rolls. And so any of you living in Ada County, unless you're off in some other county or some other State, have been picking up the tab for that part that is exempt by judicial order. In other words, Boise has not been paying the tax load. But the County Treasurer has to have 61 • • • • C CJ • 1 2 3 4 5 6 7 8 9 10 11 12 13 1u 15 16 17 18 19 20 21 22 23 24 25 X number of dollars to run all the services you want in Ada County. So you have had to pay the bill. I did research on this for the legislature, and as closely as I could come by the cooperation of the assessor's office, or he with me, was $5-million in taxes that we have had to pay that downtown Boise has been exempt from in 1978. These were the figures. You add on the escalating figure of inflation and, as I testified before the legislature last year, it was assumed that it could be $8-million that we had to pay. And so that's why -- one of the reasons your taxes are going up, plus a few more things. Now, on page 12 they mention that -- to back up what I say -- since property acquired by the BRA from private ownership were taken off the tax rolls, the revenue lost thereby became an expense to the City directly attributable to the urban renewal project. And listen to this: HUD considered it a cash contribution to the gross project cost. Interesting. Now, two years ago I called Los Angeles, and I talked to the manager of one of the biggest store chains in America, as I understand it, and he said at that time they had -- nora, this is when the economy was even better. ~ ~ i • • • 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 62 He said they had no interest in coming to Boise, into downtown Boise. I have also called LJashington, D.C., Portland and Seattle and some other cities, getting information. And it really is interesting what you get out of those places. Now, I want to show you very briefly something else here. Now, on page 22, if I might beg your indulgence here for just a little bit, now, this comes from the BRA, and it is entitled, Project Completion. According to the developer, who was 4dynmar when this was written, starting construction of the Boise City Center is tied for the national economy. Prospective department store anchors are not expected to commit to the project until lower interest rates are encouraged barring for expansion. Then commitments will be forthcoming and construction can begin. Reasonable optimism permits the prediction that construction can start by mid- to late 1982. This means the center can be completed and open by mid-1984. Therefore, projections of the expenditures necessary to complete the downtown project there is considerable significance. Current estimates are -- and I want you to 63 • • i 7 • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1? 18 19 20 21 22 23 24 25 Current estimates are that total public and private costs -- private costs, it says, too -- to see the pro~eet through, will be more than x100-million. The public costs mainly for parking facilities will amount to about one quarter of that. So, you see, they expect to get you into downtown Boise, when they get it developed. Realization of the urban renewal goal can bring economic benefits that will let the good times roll right off into the 21st Century in Boise. You see, they are really optimistic here. For example, money earmarked f or the construction period, public and private, will multiply itself many times by creating at least five hundred worker fobs. Dollars for materials and equipment cai11 be multiplied also through local supplier and subcontractor channels. In addition to the immediate economic. stimulus of this massive construction project, continuing benefits can be expected from operation of the completed Boise City Center. When it opens for business, approximately 1,500 to 2,000 full and part time jobs will be created generating a yearly payroll of at least X10-million to enrich the local economy. ~ 1 ~ 64 i ~7 f • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 The greater share of area retail sales it is expected to capture is an added bonus. Finally, the high evaluation resulting from development improvements will strengthen the City tax base, and so on and so forth. Now, -- okay. Boise has been trying to develop for, what is it, going on 18 years, and here they right this kind of a thing. Now, since Boise -- since 6Jynmar is pulling out -- but he's still dreaming a little bit though, you know. He's been contacting some stores. But since idynmar -- you know, it seems like he can't pull out. And we've got this committee now trying to revitalize downtown Boise. And you've got Larry Leisure out here a little bit this side of Boise, and I'm sure he's going to get what he wants. What is really going to happen to downtown Boise? Now, I want you folks to understand, I didn't want to tear down downtown Boise, and it sounds like I am attacking them, and I am. I have been for 20 years. I wrote a letter to the editor, and I still have it for the Meridian paper, way back in 1962 I think it was, objecting to urban renewal. The whole theory of it has been a miserable failure filled with graphs and Greek and everything else all over the nation. ~ ~ i 65 • • • i • C~ • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Once in a while it works, but it isn't too Now, I want to go to something else. In a letter from HUD to Senator Simms, it says hear that: ~~~e are writing in response to your letter of October 22, 1982 in which you request information for a constituent, the litany, regarding the total amount of federal funds that have been given to the Boise urban renewal project. From 1969 through 1980, the downtown redevelopment project received a total of X36,823,912 from the following HUD programs. Now, Folks, the reason I bring all this out ', is because this is your tax money, plus the fact you have been paying the tab for downtown Boise, tax exempt status. This whole program in downtown Boise has cost us nothing but money, and what do they have to show for it. Now, I don't know whether Paul Quong is going to use some federal grants or not for his program. I have never heard him say so. But if he is going to develop his project -- and T want you to bear in mind, the State and federal government is going to take our place anyway. It doesn't make any difference what happens to our farm. That's not why I'm up here. I don't really want to lose it. But if Paul Quong is going to use private ~ ~ ~ r1 U 66 ~, u ~~ J >y r, :~ • ., u -, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 money to develop this complex that he has here, and since downtown Boise has been a miserable failure, and since there is room for ~~Jest Park if he wants in there, since Boise - - downtown Boise can't make it, and if Quong wants to make it, what's the matter with private enterprise? Half a dozen shopping centers, if somebody has got the money to bring them in. But with the economy like it is, they're not going to get here. And downtown Boise is not going to get the stores from what I've been able to find out. And they have given me their reasons, and they're not all publicized in the paper. And you're not always getting the truth through the Statesman either. So anyway, I dust wanted to bring these figures out for you because T don't think they're really public knowledge., how much money has been spent for downtown Boise. And, Paul, are you going to get some federal grants for your project? R~IR. QUONG: I don't believe in it. r9S. OLIASON: He said he doesn't believe in it. 47e11, thank you, Gentlemen. Like I said, I want to end up and~say again, PAayor Glaisyer, T hope you people don't have preconceived ideas about what you're going to do and we're dust coming here for nothing a • 67 • • • • •' C~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 tonight. However, I must say I share your concern for the expense to the taxpayer. But Ism concerned about the expenses generated already from downtown Boise. I don't see how this could be any worse. Thank you very much. MAYOR GLAISYER: The next speaker is D~.ek Williams. - RICHARD C. WILLIAMS, came forward and gave the following statement: MR. WILLIAMS: PRy name is Dick Williams. T live at 917 Storey Avenue here in Meridian. And I guess the way it looks, Ism the third person here to testify tonight that actually lives in the City. Ind like to address both the comprehensive plan changes and the proposed annexation. I hope to make it brief and concise. On June 30th, 1882 I wrote the Meridian P&Z Commission a letter expressing my objections to the amendment to~the comprehensive plan. I attached a copy of that letter for your reading. Basically, though, I urge you at this time to delay on the proposed amendments any action until you ~ ~ ~ 68 r-, u J • • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1g 20 21 22 23 24 25 have completed your area of impact negotiations with Ada County and the City of Boise. I feel that this is a must so that you don't wind up reinventing the wheel, and I know you are close to that area of impact decision. Secondly, in all my years in the City government I have never seen or heard of a more tortured annexation request to a city entity than the annexation request proposed by Quong-1~Jatkins to the City of Meridian. This annexation request will destroy Meridian's rural buffer areas. It contorts the City's boundaries, bisects the City into nearly two separate entities, and I believe will be financially devastating to such a degree that it will endanger the City's ability to provide basic services to its present inhabitants. As a City resident and former City Council member, T have taken a great interest in these proceedings leading up to the final City Council hearing tonight on the amendments to the comprehensive plan and the annexation request. I have read the Pd~Z Commission's request of findings of fact and conclusions and P~Z's recommendations to the City. I must take some strong issues to their ~ ~ i 69 • • • • C7 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2~ 25 recommendation as well as to certain of their full findings and conclusions. My comments are specifically as follows; No. 1, Orderly Growth and Development. It is my firm opinion that there is simply no way this annexation can be reasonably assumed to be used for Meridian's orderly development. All one needs to do is look at a map of the proposed annexation. The property in the annexation proposal is a snake configuration down the freeway. How can you get any semblance of orderly development out of an annexation request which must jump the freeway four times and Eagle Road once just to remain, quote, contiguous. Second of all is, Control of Eagle Road. There has been much speculation and professed desire by the P&Z Commission and a lot of people in Meridian to annex the Eagle Road simply to have the City of Meridian gain control over this area. In P&Z's own conclusions, they said it would be in the best interests of the City to annex the area so that they would get control over the area. This misperceived need to annex to gain control flies in the very face of P&Z's conclusions and their finding of fact, and finding of fact with Idaho lata. ~ L ~ ?0 • • • • • • • • 1 2 3 u 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 As we all know, the statute of the Idaho Code i requires the City of Boise and Meridian and Ada County to negotiate each other's respective areas of impacts. Once this negotiation is completed, then Meridian will have complete control over when those uses of the land that their area of impact is, and they will be able to regulate all future development. Now the City of Meridian is being asked to annex some 350 acres of prime agricultural land when the uses of that land are not completely known. No. 3, Maybe Develop, I feel, is a definite harm to the City of Meridian. Even if one were to assume that this annexed area were to be developed as proposed, the cost to the City is astronomical and most harmful to this small community's financial structure. As a citizen, I am alarmed at the potential costs. Assuming the proposed development occurs, the initial capital costs to the City for fire protection could reach well over a million dollars for new buildings and equipment. Even if the developer were to pay the costs as evidenced by the P&Z's Commission, quote, requirements of the developer, these costs are only X375,000, leaving the City -- that's you and me -- to come up with an ~ J CJ 71 • • 1 2 3 4 official $625,000 for the first year. In addition, the City runs a possible risk of over $500,000 per year in fire costs for manpower, repair, maintenance and et cetera. • C • • • • 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 z3 24 25 This is a Maybe Development: The Planning and Zoning Commission after it recognizes that the whole development of this proposed annexation is maybe at best, i the P&Z~s Commission did also conclude that the proposals, of a petitioner are only that; proposals. And there is no guarantee of development or use. This is No. 33 of their conclusion. Planning and Zoning then went on to conclude that, quote, It is in the best interest of the City to provide some mechanism whereby the area is not annexed and zoned until evidence of this development is shown. This very mechanism was provided to the City by agreement with t~1r. Quong in 1 g81 . I find it hard to believe that P&Z omitted from its findings of fact, certain pertinent facts, which aaere introduced into evidence by myself before the P&Z. These facts are: One, Paul Quong entered into an agreement with the City of Meridian. That this agreement was titled Acknowledgement of Developer's Intent. ~ , 72 • C • • • • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Three, that this agreement was entered into on January 15, 1981. Four, that this agreement provided that Paul Quong will not initiate annexation proceedings, quote, until developer has obtained signed letters of intent from the major tenants for the shopping center, unquote. And, five, that it is a fact that Paul Quong has, in fact, no signed letters of intent from any major tenants. I was the president of the City Council when this agreement was signed. This agreement was entered into at the specific request of Mr. Quong. It was entered into in good faith by the City. Mr. Quong has clearly violated this agreement. EJere this agreement adhered to, we would not now be faced with an annexation request based on pure speculation as to development uses in that annexation. tide would not have to face an annexation which brould, quote, self-destruct in three years. Why go through all this expense, arork, pain, division of the City for something that may never happen. This agreement we signed in 1981 was entered into to prevent this very occurrence we are now debating. These facts alone plus the P~Z~s above stated conclusion ~ ~ ~ 73 • • • • • • • C7 • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 alone justify the City Council in denying the Quong-~datkins annexation request. There is more, but I think that if you read it, you will find out what some of the specifics are as far as the points of P&Z's recommendations and conclusions. 1 I also have a concern about .downtown Meridian. We have heard tonight that the proposed annexation will not have any effect on the downtown development. I question what will happen if the mall is developed only two and a half miles from the City center. I am very concerned about the livelihoods and investments of our business community that now pays taxes', if the mall is developed at Eagle Road. I feel Old Town would be a very, very correct description of that area, because it would ruin it. Also, I would like to address one comment that was made earlier regarding the water and sewer hookup fees. As a sewer commissioner for four years prior to this, I would like to make a correction and say that the sewer hookup fees that are paid by any developer must be used to repay the bonds. You cannot invest ~,-ith excess money and earn interest rates higher than the bond rates. This is called arbitrage. And it is illegal. • ~ ' 7'+ • • • • • • C~ • 1 2 3 ~# 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2 ~1 25 In summary, the Quong-b~atkins annexation will be financially devastating to the City with or without any development of the proposed mall. Therefore, I feel that the annexation is not in the best interests of the City of Meridian and that the annexation request be denied by the City Council. MAYOR GLAISYER: The next speaker will be Marvin Bodine. l~1ARUIN BODINE, came forward and gave the following statement: MR. BODINE: My name is Rlarvin Bodine. I live at 917 Camellia Street; not tell miles from h1eridian or a couple thousand miles. But I have lived here in Meridian for over 50 years. And Ism pretty proud of the City. And Ism damned. proud of our mayor; I think weave got a good mayor. And I sure give him my support. And by the way, Dick, you~re a hard act to follow. You did a real good fob. It is the most complete report that weave had all night, as far as I am concerned. It was real good. But to go on with what I want to say, I voted, for you, Joe, to run the City; I didn't vote for Quong; I didn't vote for anybody else. But I voted for Joe. And ~ i ~ 1 2 3 • ~ 5 6 • 7 8 9 ~ 10 11 12° ~ 13 14 15 ~ 16 17 18 ~ 19 20 21 ~ 22 23 24 ~ 25 • 75 I think you have done a good fob. ale have heard one fella speak on the Fire Department a little while ago. I know that Boise State lost to Moscow, to Idaho, with their football team, but Ism not ready to see -- Ism not ready to see us hire Boise City boys part time or have a part-time fire department. Doth of our fire departments have been on the force for 23 years, a good many years. And they~re trained. They do a good fob. I donut want a five-year department, or a four-year at the very most I guess I should say, protecting my wife and children. Somebody also mentioned earlier about -- Ism trying to think back; I get myself worked up too much (laughter). Maybe it was a lie. I~11 go on. Ism sorry. I donut need that (indicating) thing, anyway. But anyway, there is no way in the world Meridian can afford the Quong annexation. The money that he offers as far as building the interchange was not the full amount of the interchange. The money that~s been offered for a fire department is not the full cost to build the fire department. 76 • • • • • • • • C~ 1 I was on the group that studied for the 2 Meridian Chamber of Commerce on the interstate highway 3 and where it should go. And at no time were we told that 4 should we give any thought towards the shopping mall 5 being located there that's had any bearing on the road 6 coming through there. 7 This was put into our mind by the people from 8 Texas that were hired by the State to study it. The g shopping mall would have no bearing whatsoever. 10 Now, it's been reflected tonight that it did 11 have a bearing. But this is not true. They told us that 12 there was no bearing whatsoever, if the shopping mall 13 would be there or it wouldn't. 14 Consequently, I feel that there is no way in 15 the world that we can afford the shopping mall at 16 Eagle Road. And I hope that it won't come to that. 17 MAYOR GLAISYER: The next speaker is Ron Nahas. 18 1g 20 21 22 23 24 25 C~ 77 C~ • • • • • • • 1 2 3 4 5 6 7 3 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 RON NAHAS, came forward and gave the following statement: MR. NAHAS: Ladies and Gentlemen, P~embers of the City Council, my name is Ron Nahas; Ism here representing the Nahas family. In case there is any confusion, we own the site on Meridian Road. We bought that site in 1972. We came into the town of Meridian and looked at it, bought the site because it was zoned for a regional shopping center, and it was dedicated by this City Council for that purpose. UJe felt that it would reinforce the existing development patterns of Meridian, that it would protect the quality of resale in downtown Meridian. And we think so today, that it will do all those things. Fortunately, this evening we have a lot of testimony regarding the impact that will fall on Meridian.- The question before the City Council is not ' what the impact of this comprehensive zoning -- comprehensive plan change is going to have on department stores. The question is: What impact is it going to have on P~ieridian. And we in the process of our discussions with the department stores, which are going on weekly at this time, they are going on between the ~ ~ ~ 1 2 3 ~ ~ 5 6 ~ 7 8 9 ~ 10 11 12 ~ 13 14 15 ~ 16 T 18 ~ 19 20 21 ~ 22 23 24 ~ 25 • 78 Simons, our partners in this pro,~ect, and the department stores. ode undertook to examine all of the alternate sites including the Meridian site. In order to get the best possible information, we hired an expert firm from Chicago, Camiros, a firm that specializes in working for the municipalities to determine fiscal impacts. Seventy percent of their clients are with municipalities. They have done over one hundred of these studies in cities across the United States. Currently they are specializing in the fiscal impact of municipalities of real estate development; primarily regional malls. Now, we have with us this evening Jaques Gourguechon representing -- or Jaques, if you prefer the French pronunciation -- representing Camiros. He is a graduate with an Economics Degree from Michigan State. He has a Master's Degree in City Planning and Regional Planning from Illinois Institute of Technology. He is a member of the American Institute of Certified Planners, and he has been doing this type of consulting work for 15 years. Jaques has come to Idaho; he has studied Idaho Tax Law. He has studied the City of Meridian, ?9 • • • • C~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 talked to people of the City of Meridian; also in the City of Boise and other proposed regional shopping cente r sites. I would like to take this opportunity to introduce Jaques and have him come up and give you his perspective on the costs of the Eagle Road annexation for the City of Meridian, and the relative costs between that site and the one which is currently and still designated in the comprehensive plan -- that's the one on Aeridian Road -- for the regional site. ° So, Jaques? JAQUES GOURGUECHON, came forward and gave the following statement: A1R. GOURGUECHON: I would like to set this up so that both the City Council and members of the audience can see it and hope for the best that this easel will hold. I think if T put this up, everybody can have a better shot at it. Again, my name is Jaques Gourguechon. I am with the consulting firm of Camiros, Limited in Chicago. 4Je are a firm that runs and specializes in consulting to municipalities, and we also work for private developers t 80 • • • i • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 as well as to municipalities. Our experience across the country with regard to this issue is one cahich is directly related to the development of cost revenue assessments; that is, to understand how the imposition or placement of usually major land use developments will affect the budget of its host communities. In this case, we originally came to Meridian two years ago. It was a very similar assignment; at that time it was the request of Dayton-Hudson Company. And at that time we did extensive research which resulted in this 150 page report that took a look at the land .u se impact, the fiscal impact and the impact on the consumer market in the Meridian area. And at that time it was a comparable study of the Treasure Valley site, or the site of the Meridian Road intersection, and the proposed site at Eagle Road. With the Quong-Watkins annexation, we were requested to come back and update that study and to look at it now not in terms of simply a comparison of one shopping center site versus another, but to answer the question which has been posed. And I haven't heard that in the projection of data in cost tonight. What is being projected here is the annexation of 347 or 350 acres of land. It's not just a i ~ u 81 • :7 .~ u • 1 2 3 4 5 6 7 8 9 10 11 12 13 1~ 15 16 17 18 1g 20 21 22 23 24 25 shopping center that is going to affect the police, fire department, sewer and water -- provision of the sewer and water services, and so on. It's the annexation of all that land, each of those property owners, future homeowners or commercial businesses that do locate there, all have equal access to the services of the City. And so in assessing this, we had to look at the entire impact of the annexation; not simply the impact of the proposed shopping center. That's the assignment, and I'll give you the results of that, and I'll try to be brief. I think that it's incumbent on me, however, to discuss a little bit with you about the methodology because you have heard a number of different proposals tonight, a number of different assessment data. The clearest and cleanest gray to do a study of this type -- and there are all kinds of different formulas, some of which deal with ratios and assessed evaluation; others which deal with per capita cost, that means we have so much cents or percentage of cents of police costs per capita. All those are very interesting and theoretical. But what it gets down to, a real clear assessment of costs, is a case study method. And that ~ - ~ 82 • • 7 ~~ :~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1g 20 21 22 23 24 25 is, Whatts going on in the community at present. We have heard tonight about systems of providing services at Moscow, systems of providing services in Boise. Those are all very interesting models; they~re interesting theories. But the issue here is what the impact is on Meridians services. And the case study approach looks at exactly what the case is in 1~leridian. In other words, we're not dealing with the theoretical; we are dealing with a police department that is currently over capacity. Were not dealing with a police department that has a lot of room for additional activities to come in without expanding the staff. Were not dealing with a City that has a university adjacent to its downtown; were dealing with Meridian, Tdaho that has a long history of operating a volunteer fire department. ° So the case study methodology does two things: It looks at what the existing systems of delivering services are, and particularly what the existing capacity is. Is their existing excess capacity to expand the City through this annexation and provide those services in a cost-effective way, or Is there not that existing capacity? Are we now over capacity and have to double the interest structure and corresponding ~ ~ ~ 83 • G • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 costs? And this is the approach that was taken in our analysis. The analysis is also a modeling exercise. And I want to bring that outright from the start, because there is no way to project the future. I mean City planners pride themselves on being future thinkers. UJell, in reality, we deal with what I hope is organized foresight. L^Jhether we're dealing with fiscal impacts or whether were dealing with plans, and this is a model. The exact costs are going to be dealt with on a year-to-year basis. But we think it is an honest assessment of what the likely impacts will be, and certainly it's done with a system of common sense, and I think if I walk you through this, you will see that. What it does is, it tries to say, If we have , this development on-line, what would it cost us to service for a year. And that is, it's an analysis year. ~)e take a typical year and say, If this were on-line in 1881 -- given the tax rates in 1881, given the way our police department is structured in 1981 -- what would it have cost us. Well, we know it will never be in 1981; it will be, if at ever, realized in 1983 or -4, or something fl --~ ~~ 84 ., .~ ~~ U s • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 like that. But it's a good way of looking at what the likely costs will be. The other thing I wanted to distinguish here, there are two kinds of costs involved. There are one-time costs. A sewer hookup fee or a tap-on fee is a one-time cost -- or a one-time revenue to the City. A building permit fee is a one-time revenue to the City. You get it one time and one time only. There are also certain one-time costs associated. You have to build a fire station; it's a one-time cost. You have to buy certain pieces of equipment; until that piece of equipment wears out, it's a one-time cost. On the other hand, there are continuing costs. If you have to hire six new policemen, they have to be paid each and every year; not just the first year. The critical costs we are looking at in this analysis are the continuing costs, because this is the cost which Meridian is committing itself to. These are the ongoing costs. Now, the last point I would like to make before I take you through this is that the State of Idaho has passed a series of tax laws which make it unique in the country. There is at present no other State in the ~ ~ ~ 35 • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 i6 17 18 19 20 21 22 23 24 25 country that I know of -- and T'm quite sure I'm right -- that has quite the setup for local government taxation that Idaho has,. Usually, one can come in and do the study and with a big smile say to the community, This regional shopping center is going to bring you X hundreds of thousands of dollars of revenue a year, and your costs are going to be only one-quarter of that. That's not the case in Idaho. Idaho has structured its State tax laws so that the City cannot raise its budget by property tax more than five percent a year. All of the numbers that you have been hearing about in terms of how much taxes are going to be paid are true. You can pay the taxes, but you can't raise the City budget. ~~That it does is lower the tax rate for everyone else. The problem is, that that new unit, that regional shopping center wherever it is located, on h9eridian Road or on Eagle Road, simply the services that it demands cannot be recaptured by the revenues that are generated. And that's not because it doesn't have the potential; it's because of the way the State laws are set up. Now, we, too, work extensively with the State ~ L ~ 86 i i • • i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 95 16 17 18 19 20 21 22 23 24 25 Tax Commission, looking not only at what presently exists but also what the tax history of the one-percent initiative was and has been and what is likely to happen in the future. And it's apparent to people who have been involved in research at the Tax Commission that it is not going to change in the near future. So as unrealistic as I think it is from a planning point of view, from the point of view of a City Planner in trying to see how this community and other communities are going to operate their municipality, I think you have got to live with this fact for Suite a while. Let me talk about some of the costs specifically. Let me, before that, give you a little background on the annexation, because it's an important question. I'm going to try to talk loud so I can use the chart. If anybody in the back can't hear me, just raise your hand, and I'll shout louder. The annexation that has been requested is an extensive one that involves approximately 350 acres and could be varied from that. And it runs from a point west of Locust Grove Road to a point near contiguing with the City of Meridian out to the Quong-Watkins site which is shown in that blue-black cross pattern. ~ i ~ 87 i f t Ci • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 As you can see, it creates a long corridor of land which stretches along Interstate 84. In total, from this (indicating) point here to the Quong-Watkins site, is approximately a mile and four-tenths. The other point down here (indicating) is the existing zone shopping center site which is the Nahas site. Now, in doing our studies, we took a look at the impact of that entire 350 acre parcel of land, or series of parcels of land. Its particularly important because it requires taking municipal services south of the freeway on a continuing basis that turned out to be not quite as bad as we thought it would be. But it still is a substantial cost. In addition to that, the provision of sewer ~! and water service down to those areas becomes an extremely sensitive undertaking because at least two passes have to be made under that freeway in order to get it there. But those are costs that will be absorbed by the developers of those parts of the land. In order to take a look at what the revenue impact would be, we have to assume land uses for the various parcels in the annexation. And in doing so, we took a look at not only the plans of the community but 1 ~ 88 r • • • • a • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 assessed valuation records, the market for comrercial development and the pattern in terms of development in the P~leridian area. Based on that, we came up with two scenarios of land use. The scenario is just a best-guess look at what's going to happen. One of those, assume that the shopping center at Eagle Road would go ahead, and if it did obviously there would be spin-off developments along Eagle Road and other types of developments along Overland. In extending that work, we developed, in effect, in looking at the future as what the land uses would likely be. It's our conclusion that, given the market and access points, that your spin-off development would be primarily along Eagle Road both north and south of the freeway. And naturally it would extend on other parcels outside the annexation, but since we're addressing the annexation itself, we haven't shown that. t^Je do not anticipate there would be extensive commercial development along Overland Road, because it is out of the direction of traffic flow and that it would not be a natural place to develop ancillary community convenience centers. And I think the commercial zoning that's been i ~ ~ 89 • • • • • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 and would tend to lead to strip development. A residential development pattern would be more appropriate for that area regardless of whether the shopping center develops or not. There is a force of likelihood that a shopping center may not be realized at that location and may go elsewhere. If the annexation goes ahead, that will not change the fact that this land will be in the City of Meridian. And so we had to take a look at what the cost impact could be, given that set of circumstances. And for this circumstance, we also had to develop some land uses in order to check the market value for assessment purposes of that land in order to take a look at what revenue there would be and what types of land uses would be there and on that basis fudge what types of municipal services would be required. And this (indicating) map indicates the results of that set of studies. Our findings, Ism afraid, are not clever. There fs no one good solution as far as municipal cost revenue goes. There is not one bad site or one good site. And I think the comparison here is an essential one for the City Council to make their decision. ~ i 90 • • • 1 • • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 The provision of the police services is a critical one in any City. And it's usually the service which. has the highest budget line item; it's the service which is most highly valued in almost every community. The basis for our development of the costs that are shown on this chart come from extensive work throughout the country. I think it is an unusual circumstance that one of my client communities is Schaumburg, Illinois where I had been a City Planner for the last eight years. Schaumburg was mentioned earlier as a close community for jaoodfield Mall. And a number of the figures and cost factors that have been taken into account here come from a study of an eight-year history of 4Joodfield Mall itself. That history shows us a number of things: the types of police service that can be accommodated as usually called for at regional malls, the types of services that are needed, and can project a demand, if you will, a demand for police services, in terms of calls for service and for patrol by the police department. That's one side of the equation. The other side is, How are things currently set up at Meridian to provide that to meet that demand. The situation in Peridian at present is as follows: • a 91 • • C~ • • • r 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 1q 20 21 22 23 24 25 The police department, according to the Chief of Police, is stretched to the limit currently with no mall development without one additional house. He feels that even now one or two extra policemen would be justified. Given the way the police department is set up, the way the patrols are set up, that a regional mall in ~9eridian, regardless of where it is located, would require six additional men. That is in response to provide protection, not to the mall particularly, but to make .sure that on a 24 hour basis there are two patrol cars available in the City at all times, because in this projected call for service of two per day at any time you have to have available one car to be directed to the large regional mall where youtre going to have severe calls for service on occasion and still have an extra car to service the rest of the City. Its not particularly the number of calls that you have to respond to; its the fact of having a backup to service the entire City. The question of two calls per day is an interesting one. Actually, the projection of this, based on our data base, comes out to be 2.41 calls per day based on the pro3ected size of the Eagle Road mall. C7 92 • • • • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Because the Treasure Valley mall is somewhat smaller, the projected calls per day is about 1.7. Really, those are averages in theoretical models. On heavy days, on Friday nights, you~re going to have the occasion where you have ten calls per day. And these are the occasions that one cannot predict. But these are occasions which the Chief of Police feels that he has to be prepared for, and I agree with them. In this case, we are dealing with the addition of six patrolmen, one detective in the case of the Eagle Road mall. And because the Treasure Valley mall is smaller by a significant factor, he does not feel that the police detective work would require an additional policeman. In both cases two patrol cars would be necessary. How does that translate into dollars? Its a simple process. You take the average salary, multiply it by the salary cost factor of .23 and you divide it by the number of men and you have a cost on a continuing basis to the city of about $141,350. And this is for the entire annexation area, remember; not just the mall, for the annexation request assuming the mall is developed. If the mall is not developed, the service requirements are less, and depending on the land use, it ~ ~ 93 • • • • • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1b 17 18 19 20 21 22 23 24 25 can rate from one additional patrolman up to three to four additional patrolmen. The highest of that, three to four, would be based on a commercial development of the Overland Road corridor which is what the zoning request is fir. I personally don't think you will have full commercial development there, but since the zoning has been requested in that category, you have to anticipate it. Based on the same factors of costs, we project this at approximately b70,000 police cost for the annexation if the mall is not developed; essentially about half. The police costs for the Treasure Valley mall are also substantial. There is no getting aa~ay from that. Tn this case, we're looking at $122,000, also based on the need for six additional patrolmen. And believe me, if that weren't the case, I wouldn't be standing up here saying it. This is based on extensive time spent with the Chief of Police and the research that we have done on the calls per service at a mall. (Brief interruption.) t~(R. GOURGUECHON: Okay. Let me continue. This next chart summarizes the research that we did to ~ i ~ ~ 1 2 3 ~ 4 5 6 • 7 8 9 ~ 10 11 12 ~ 13 14 15 ~ 16 17 18 ~ 19 20 21 ~ 22 ° 23 24 ~ 25 1 94 determine what fire protection, fire control costs would be of the annexation, with the mall and with the Treasure Valley -- comparative to the Treasure Valley site. You will notice on here that the annexation without the mall is not included on here. A.nd that is because it would be the same as the Treasure Valley site, and not really cost anything additional based on the land use scenario that we developed. We are showing things a little differently here. ~1e are trying to indicate here the one-type capital costs 'to the City because they are so substantial. In effect, the gold bar on the far left-hand side indicates the construction of the buildings that would have to be built and the costs of those buildings in order to provide proper fire coverage to the annexation area, particularly the Eagle Road zone itself. The red area indicates the additional equipment that would be required to give that station -- to properly equip the station. It was said to me, there is no reason to build a building if you donut have anything to put into it. On the right-hand side of this chart we are showing annual operating costs. Here again, if the mall. is developed under this annexation, if its felt by all :~ 95 • • ~, ~. .. • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 1~ 15 16 17 13 19 20 21 22 23 24 25 those who deal with fire service in Meridian, that a full-time fire department would be required, when you have two different fire stations. The mayor impact of this, as you can see from the chart, is manpower, the amount of them. In the blue column here indicates the annual costs of providing manpower for both Eagle Road station and the main station. The gold area indicates the building maintenance that would be required, additional building maintenance by having sleeping quarters not only at the new station but at the old station as well. And finally, the red area is the annual costs,. of maintaining equipment and depreciation of those pieces l', of equipment that only last a couple of years. In total dollars amount, I think it is significant to note that the capital costs of adjusting fire service in Meridian to account for this annexation, should the mall develop, exceeds a million dollars. And that includes the building of a fire station in the vicinity of Eagle Road, the construction of sleeping quarters above the main station in downtown Meridian or, with the full-time fire department, sleeping quarters have to be provided there. The provision of a ladder, truck, at the ~ L ~ 96 • • [~ • • CJ • • • 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Eagle Road station, this is an ecological piece of equipment for the fire department, and again, a truck has to be provided at that station, a squad truck for the station and probably an additional car. It's from this million dollars, or the excess of a million dollars, this is what has to be paid in order to get fire service to the Eagle Road area. It's from that million dollars that one then deducts whatever donation promises that have been made. It is from that, the resulting amount of money after you have deducted those donations -- and I frankly don't know what they are -- is what the citizens of P9eridian will have to finance. You will likely have to finance that by bonds and the bonds themselves will turn over into a 25 or 30 year payback schedule that will turn into a continuing cost. tr]e have not calculated that, but it's a significant amount. Certainly, the bond would exceed a half million dollars and would be an additional financial burden on the community. In terms of annual operating costs, we are looking here at the need for 15 full-time firemen at competitive salaries and salary benefits and the amounts to maintain their equipment and buildings as well as ~ ~ ~ 97 C7 L • • • • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 their living quarters. It's my understanding that the it's the tradition of this community and its fire department, it would be most logical to provide that fire service by converting to a full-time fire department rather than looking for ways to shoehorn in at some type of mixed development. That's not my opinion; it's the opinion of people that run the fire department here in the community. There are other minor costs. There's the cost of extending general government services. Those costs in both cases run into the few hundreds of dollars. ~Je haven't bothered to map those out. I think what's much more important to look at here is the revenue picture, because you have been getting a lot of conflicting numbers. And we decided to show this with a chart over a period of time because the laws in Idaho it reflects are not simple. And this chart indicates for you the effect of those laws, and the best way to take a look at what Meridian will really get is to take a look at the five-year tax flow. If you take a look at revenues coming into the City over five years and average them out for that period of time, you get a much truer picture of how much ~ 1 ~ 98 • C7 [7 • • • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 money Meridian is going to get. Now, these revenues come from property taxes. Obviously, there are some other revenues that come to the City. Let's consider sales tax for an example. The sales tax laws in the State of Idaho are so structured that the City of Meridian will get its share of sales tax if this mall is located in Tdaho Falls. The mall would have to be located outside the State of Idaho to keep Meridian from getting its share of State taxes that would come from the addition of a mall. So whether the mall in the City or out -- and this holds true for whether we're talking about the Treasure Valley site or the Eagle Road site, makes not one iota of difference, which is really all insignificant because the amount of money that is likely to accrue to the City in sales tax is X193• In the case of the size of the Treasure Valley mall, it's even a more magnificent number in the area of probably a little under X100. So the issue of this thing producing hundreds of thousands of dollars in sales tax is simply not correct. This can be verified by a simple reading of the Idaho State laws that relate to sales tax. There are other one-time fees that come in, ~ ~ i 99 • C • • • • • • 2 3 4 5 6 7 8 9 10 1i 12 13 14 15 16 17 18 19 20 21 22 23 24 25 building permits and so on. Those one-time fees are usually structured so they pay more cost of inspections and there is a direct trade-off there. 1Jhat is really important is what happens to property tax and what happens to the City budget, because those extra police costs of X140,000 and with those extra Fire costs which could exceed a half million have to be paid each and every year; not just one time. ~1ow, frankly, I donut know how it possibly can be paid given the situation that exists in the State regarding property tax. It goes this way. The State provides two methods for any City to raise its City budget on property tax. I emphasize the City budget because Ism not talking about how much taxes they can get out of one developer or one property owner versus another property owner. That property owner is going to pay a substantial amount of taxes. He is going to pay his market value of his land For assessment purposes times the same tax rate that each of you homeowners pay. And I guess that is now -- now that Idaho law has changed in the last election. Actually, the tax rate will be the same. Your assessment will be cut by 50 percent.. Okay. Let me go over that again. The tax • ~ ' 100 • • • • f • • 1 2 3 4 5 6 7 8 9 10 11 i2 13 14 15 16 17 13 19 20 21 22 23 24~ 25 rate which a commercial developer will pay is the same as anyone else pays, except your assessment would be cut by 50 percent. Commercial developers will not. Your market value for assessment purposes will be cut, and the commercial developers will not. The issue here, however, is, What kind of revenues will come from these developers. Idaho law says that a community can raise its budget by five percent over its previous year or the highest -- or the highest budget year in years 197 to '~1, I believe. The way it works out is, the last preceding year is almost always the highest budget year. So you have the possibility with no development of raising your City budget by five percent. u7e11, we've indicated that on this (indicating) chart by titling that to five percent increment deals. Over five years, that would allow an average annual gain of X14,500. That's with no development. You get the X14,500 gain simply by applying the five percent rule. There is another method, however, that the State legislature has provided for communities that have increments of growth. Now, this obviously is an increment of growth. And the new growth increment says • 1 I 101 • • • • • • 1 2 3 4 5 6 7 3 9 10 11 12 13 14 15 16 17 1~ 19 20 21 22 23 24 25 says you can pay half of that growth increment, the assessed evaluation of the new growth increment, and apply half of that times last year's tax rate, and you can raise the budget by that amount, in the first year. And that's why we have on this chart a revenue flow that is higher in that first year. And it's for the first year only. What happens in this case, we are showing the results of the Quong-tdatkins annexation; not just the center, but of all the value of the 350 acres that comes into the City, and gives you a big hit of money in the first year. In the second year, that new tax increment of X111,000 I believe we calculated out, is added to the tax base. And then that amount is an increase by five years both by five percent over the next year. So the net result is that you have a tax gain over five years of approximately X38,000 a year. Without the mall, you have a tax gain of less than the five percent amount, and that's the lowest line here (indicating). It's under $14,500; just a little bit over X14,000. So if the mall is not developed, the new growth increment doesn't help you at all. The Treasure Valley mall provides you with i ~ ' 102 4 C 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 just about the same amount of average annual revenue as does the Eagle Road. Since it's smaller, it's value is somewhat less. If they're the same size, which they're really .likely to be when everything is shaken out, you know, any developer is going to take full advantage of the market, so they're going to really end up the same size. So the revenues you are talking about gill probably be the same. But for our purposes, they're close enough here. The Treasure Valley mall will end up at approximately $32,000 on the average over five years. The summary of this situation, as far as continuing costs versus continuing revenues that affect the general fund of the City -- that's the City that pays for your fire and police and general government -- are as follows: The Quong-Watkins annexation request with the mall produces a total cost on a continuing basis of around $688,000. The average revenue yield over that five-year study period is $39,000 a year. That gives you a net loss per year of almost $650,000. Quong-Watkins, without the mall, gives you a much reduced cost of $70,600, a lower revenue yield on ` ~ i s Z i • i ,~ 1 i i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 103 the average basis of fourteen-five, for a net deficit annually of X56,000. The Treasure Valley mall has a cost of $122,350, most of which is police service. Its average yield would be X32,300 for a net deficit of X90,000, Now, this is why I said to you at the beginning of this that there are really no good answers here. My good answer would be a net revenue gain to the City. The way the laws are structured right now, its not possible. And I think it also should be pointed out that there is a substantial difference in these deficits, that the proposed annexation would create a net deficit seven times the amount of the existing cost if you proceed with trying to get the mall built on the Nahas or Treasure Valley site. I have for the City Council a letter which summarizes the study that we did on the Treasure Valley site which uses the exact same factors based on the same parameters and the same budget assumptions as was the study that you received previously on the Quong-~Jatkins annexation. In addition to that, I prepared a letter, a memorandum, to the City Council and R1r. Nahas cuhich discusses some of the implications of sewer and water 1 >~ i i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 104 costs that have been brought to light by members of the City Board and Sewer Department and also a discussion of the effects of changing the shopping center site sizes to reflect what I feel is more the reality of the situation; and that is the phasing of shopping centers so that we are comparing apples with apples here and not apples with oranges. In summary, that, in effect, the phasing of the centers will make them both end up in the 750- to 900,000 square foot range, in my opinion. If there are any questions I can answer, I would be happy to. (No response.) MR. GOURGUECHON: All right. If not, I am available through Mr. Nahas to give you further clarification whenever you desire. Thank you. ~ ~ i 105 i C~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ROIV NAHAS, came forward and continued his statement as follows: MR. NAHAS: Thank you, Jaques. I want to talk a little bit, and hopefully briefly, about the I~1eridian Road site which P4r. Harbeck has pronounced to be dead this evening. I am one fella who doesn't believe it is dead. Another group that doesn't believe it is dead is the Simon organization, and they are the largest and most powerful influential regional shopping center developer ever to be involved in the Soise market. They came to look at this market partially at the invitation of h9r. Harbeck to come and look at Mr. Quong's site. They came and analy2ed the entire market area and decided the site on Meridian Road was the best site, most economic site and the most likely site for a regional shopping center to be developed here. P1r. Gourguechon worked very hard, as I said earlier, on a weekly basis talking with necessary tenants to make that come about. Mr. Harbeck traditionally said that the site on Meridian Road was simply unacceptable to mass merchandisers. L ~ 9 06 z ~~ • i • ~f 1 2 3 4 5 6 7 8 9 10 11 92 13 94 95 16 17 18 99 20 29 22 23 24 25 Now, -- and I feel a little like Alice in Wonderland. I think you're going to get curiouser and curiouser. At one time we had a commitment with Mr. Harbeck's former employer, LJards, for this site, prior to the time they were acquired by Mobile Oil. Furthermore, I was at a meeting at the ICSC in New Orleans not two years ago when the real estate department of Wards had dust completed comparative studies of Meridian and the Treasure Valley area for potential sites and determined that the site on Meridian Road could produce a store with volume of 525-million a year and that the difference, the incremental difference between that location and the location immediately suburban to Boise was less than ten percent; not something that was, in his opinion in any ease, an overwhelming factor in deciding where to locate the market. So I don't believe Meridian site is dead; I don't believe the department stores have said it was dead. The department stores committed to Mr. Price for a variety of reasons. They certainly did not commit to-him because he has zoning, or because he has an interchange, or because he has inexpensive services, or because he has ~ ~ 107 i • • • s 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 any of the other things that Mr. Quong has said he has to have to get the department store commitment. They committed there, one, because of a very special relationship with one of the department stores and, two, because Mr. Price offered to give away most of the mall to them to commit. Now, the community can say, How important is that for us, what Mr. Price is willing to give away. Well, it is important. It is important because there are only two sources of dollars; two sources. Shoppers' dollars and taxpayers' dollars. That's very important to understand. There are two sources of dollars. What the shoppers spend in the stores and what the taxpayers pay in their taxes. I can assure you that no developer goes into a community with the idea of making a permanent commitment of his money there and leaving it there forever. If he thought he was going to do that, he urould never build a shopping center. I can also assure you that no lender is going to go into the community with the idea of making a . contribution of that City permanently. He expects to get his money back and to get it back with interest. So all of the things that are going to be ~ ~ ~ 108 i • i f C~ i • • 1 2 3 4 5 6 7. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 paid for by the developer, they're not paid for by the developer. They are paid for by shoppers, or they are paid for by taxpayers. So the economics of the mall are important. They're important to the community, to be sure that the mall tenants are not paying excessive rent so that you can actually rent these stores. The Simon organization is building malls, and has built malls, all around the country in smaller communities. They know what theses mall stores can pay. P9any people here in Meridian, and some poeple aren't even its merchants in the City of Meridian, and they know what kind of rents they can pay. And if too much money is spent, too much money is committed on things other than the construction of that mall, then the rents in that mall, or the rents they have to get would simply be too high to service the community. Now, we have studied, as I have said earlier, all of the competitive sites in the Treasure Valley. Ede have studied the 6dest Park site. Ed`e agree with a lot of the comments today. I don't believe it's a shopping center site. T don't believe they can solve the traffic problems. I don't believe they can solve the questions ~ ~ 109 i i i i • 1 2 3 4 5 6 7 8 9 10 11 12 13 1~ 15 16 17 18 19 20 21 22 23 2 ~6 25 of covenants running with the land with some of its neighbors. ~Je have studied the Cloverdale site. It's interesting to note that we arentt the only ones that have studied the Cloverdale site. The City of Boise did. They prepared a very extensive study and memoranda for the City of Boise regarding the costs to Boise of annexing the Cloverdale site. And I want to leave a copy of this, and there are other copies of it, with the City Council. But we had nothing to do with that study prepared by a woman named Susan Stacy with the Planning Department in the City. of Boise. And the results of that study was that there would be a net deficit to the City of Boise for the Cloverdale site of X610,000 a year. This shows a net deficit for Quong-Watkins to the City of Meridian of X649,000 a year. And, you know, they say that figures donut lie, but liars figure. Here is two completely independent studies, two different cities, both open-space sites. That~s what the Eagle Road site is. Its designated open space. So is the Cloverdale site. And the deficit to the municipalities are almost precisely the same. When arrived at, one by a consultant in Chicago, the other from the planning staff 110 7 i • • • 1 • i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 in Hoise. So we don't -- we do not believe, in that ease, that t~tr. Price, when the truth came out about the cost of his site in the City of Hoise, he was gracious enough to say, This is a very expensive thing for the City of Hoise. I am very concerned about it. And I am going to turn my attention to the ~^Jest Park mall which is closer in cahere I feel the def icits will be less pronounced than they are at Cloverdale. He at least eras upfront enough about it to say that. Our situation -- you know, what is it. You ~ know, what's happened to Pdieridian Road. ~~1e are -- and I'll be the first to admit it. ate bought the property over nine years ago. We made a big commitment. We own it, we struggled for years to pay it off. We are in -- you know, we have waited with bated breath for this mall longer than anyone, and worke d harder than anyone has. j°Je have the finest developer, I believe, of this kind of shopping center in the country; certainly the largest of this kind of small-town shopping center. They are committed to the site and they are meeting daily' with the tenants. I believe we don't have. a center in this I' 1 111 • i i • L' i 1 2 3 ~4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 '21 22 23 2k 25 marketplace for a variety of reasons. One is that the department stores did not all have a specific time table in mind. They didn't feel any pressure to build a store so they could linger, you know, with commitments on the site. Say to a developer, Go take your best shot. You know, Let's see what you can come up with. They could pick and choose their site. That's one of the reasons. Another reason is that several new interests of the market -- Montgomery Wards being one; Mervin's being another -- decided because of corporate acquisition not to go into a market like Boise, but to concentrate on major metropolitan markets. That's another reason. 1Vobody came in from the outside to create pressure for movement. And the third reason is that there is mass confusion about the sites. There are sites, and have been for years, being proposed as regional shopping center sites that aren't, and everybody has been confused. Cities have been confused, department stores have been confused, all kinds of people have been confused. ~(r. Harbeck has said that the determination of where this center is going to go is made by the • ' 112 • i • • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 department stores. I dontt agree with that. I think the people of Idaho have demonstrated year in and year out that that determination is being made by what is best for the City. And I think that now -- we believe strongly that now the department stores have a time table. 4Je believe that some of the key department stores have a time table, and they~re going to move to those sites that are going to be available, that can be built more economically. And the most economical available site is the one that the City has designated for the regional shopping center for nine years and should continue to so designate today. So I appreciate this opportunity to speak before the City Council. I believe also that the h9ayor can make the right decision. And I am amused by the concern of the tenants of downtown Hoise that excess traffic would create -- or downtown P~leridian, excuse me. I believe that the traffic situation in Nteridian can be resolved. I think the Eagle interchange a good idea. I donut see anything wrong with the Eagle interchange. However, there are cities, small cities all across this country that would die for traffic in their downtown. ~ ~ ~ 113 • • • • r • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 They would die because the traffic has been sucked one mile, two miles, three miles outside of their downtown to a regional mall. You couldn't list the number of cities under that circumstance. Cities do not die retailwise because they've got too much traffic passing their shops; they die because there's no traffic. And that is what will occur when all of the vitality is sucked outside of this City. So, you know, there has been a lot of pressure. There have been lawsuits in this situation, there have pressures and threats, there has been intimidations, calls for resignation. As far as I am concerned, the service of this) City who have taken that kind of abuse, you know, have done an enormous job for the people of this City. They are trying to protect the tenants, they are trying to protect the investment, and they are trying to protect the City financing so that there will be policemen out there, and firemen. You know, I'd like to go to the ISO underwriter in terms of insurance rates and tell him I'm going to build a X60-million shopping center and protect it with university students part time. I'd like to know what kind of fire rating i would get for buying my insurance. ~ ~ [~ 11~ 1 • • • • • i 1 Now, that is -- 2 MR. McALLISTER: The h1oscow Fire Department -- 3 MR. NAHAS: -- a unique -- 4 MR. McALLISTER: -- is fully staffed. 5 MR. NAHAS: dell, Moscow is a unique 6 circumstance; there is no question about it. I have 7 great administration for both the students and the 8 Fire Chief. I didn't mean that with any sort of a slam. 9 Sut I deal with ISO on projects all over, and 10 I know, you know, how they rate volunteer fire 11 departments. The point is, you've got three-story 12 buildings; you have got a huge, huge facility that has 13 got to be protected. 14 So, you know, I appreciate the opportunity to 15 speak. This has been a long hearing. I appreciate 16 everybody staying around. 17 I want .you to know we are still here, and we 18 have got an incredibly powerful development organizatio n 19 working for a site that will reinforce the City of 20 P4eridian. And I have every reason to believe that we are 21 closer today in realizing that than we ever have been. 22 Thank you. 23 MAYOR GLAISYER: The next speaker is 24 Colin Connell. 25 • 115 • • n • r~ u • • i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 1~ 19 20 21 22 23 24 25 COLIN COP~JNELL, came forward and gave the following statement: MR. CONNELL: I'm Colin Connell. I've been in commercial investment real estate in Boise and helped put some investors into the Meridian market based upon your comprehensive plan and other things like that, so I had to kind of come and protect some of the interests that I put in based upon the thing. My concern is with your Meridian area being split too much. I think you'd end up with an east and west, you know, Meridian. You're going to end up with the east down at Cloverdale if you approved the thing docJn there. I think all of your other development is leaning towards Boise there than come out here. I have to agree with Ron, that in working in commercial investment real estate, I have never run into property that had a real high traffic count for the month that the land value has been overachieved. where the cheap land is, you don't have any traffic. I'm also a businessman here in Boise -- or in Meridian, and in Boise. But, you know, I'm concerned about that, not having the traffic and having to relocate out where the traffic is. Because you've got to have that traffic around. • 1 116 C C~ L C~ • i • C~ 1 2 3 4 5 6 9 10 11 12 13 1 ~! 15 16 17 1S 19 20 21 22 23 24 25 You can still take care of a lot of the other traffic out here with the Franklin improvements and stuff like that near Eagle; not all that traffic coming out of Boise, you know, is going to come out the interstate and stuff like that. Wetve got to have that traffic around town here, too. MAYOR GLAISYER: Montie Ralstin. The next speaker is MONTIE RALSTTN, JR., came forward and gave the following statement: MR. RALSTIN: My name is P~iontie Ralstin. I live at 935 Crestwood Drive in the City of Meridian. I would like to address the Council with just a few comments. Some of these things will be repeated, and I~11 keep them very brief, if I can. Mr. Nahas has said some of them. Someone said about five sites have been proposed. Therets actually six. I think Jess Groves would be very indignant if he thought of the fact that they were leaving his site out. Between Boise and Meridian, there are two sites, however, that are approved. And that~s downtown ~: 117 C C, • C~ • • 1 • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Boise, and that's the site that we have here in the City of Meridian. One of those sites out of the six right now says that they have department stores committed. I think everybody here needs to remember that those are letters of intent. And those shopping centers -- or excuse me, those department stores can change their minds just as rapidly as a developer can change his mind about sites. The argument that the Nahas site, they have had it for nine or ten years and nothing has happened. You know, why haven't they done something if they're such great developers. All these other sites were available at the same time Nahas has acquired their site. IrJhy weren't they acquired then? They have had the same power, they stayed in there and fought for what they believe this community needed, and that was a regional shopping center. It. hasn't happened. The timing is not correct. Obviously, it is correct because all of a sudden we've got six sites being considered, and everybody wants in the act now. So obviously the time is correct for a regional center. Some other things to be considered. Right now in Sunday's paper announced Nordstrom's and The Bon ~ ~ ' C~ 118 • • • • • • • • • 1 ~ would both go downtown if one other store would commit. 2 Mayor Eardley approved a comrnittee; a week 3 from ~~ednesday we'll come up with their report. I'm kind 4 of interested to see what that has to say. 5 Tomorrow night Poise is going to sit down and 6 have a donnybrook downtown over whether or not 7 Larry Leisure~s site is going to be accepted. 8 I disagree with the former speaker saying g that Larry Leisure was going to get his way, because I 10 doubt very seriously if that decision will be made before 11 the blue ribbon committee is heard. 12 ~ And tonight we sit here in Meridian and ask 13 the City Council to make a decision to obtain a workable 14 comprehensive plan that we already have to accommodate a 15 regional mall at Eagle Road. 16 ~Je have a viable regional shopping center 17 site right now in the City limits of Meridian, with the 18 necessary services already based here, and within a 19 workable distance of that site and obviously within 20 workable costs. 21 Meridian Road site developers have never 22 ~ changed their mind about their site or their intent as to 23 what they were going to do with that site. They always 24 have been forthright in their intent and letting people 25 of this community know when they had something that • 119 .~ ~, u • • • • • • 1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 1~ 19 20 21 22 23 24 25 needed to be brought forth, when they had people that they were talking to as far as possible shopping center tenants, they let us know that. They haven't made commitments and come in and said, We have letters of intent from this person and this person and this person. They haven't raised our hopes falsely as far as I can see. lrle have observed them for a long time; nine years is a long time. And I don't think a little longer is going to hurt anything. And I urge the City Council to say no to this annexation and change in the comprehensive plan. Thank you. MAYOR GLAISYER: Okay. Gentlemen, that concludes all of the registered speakers. MR. QUONG: Mr. Mayor? MAYOR GLAISYER: Mr. Quong. MR. QUONG: Can we have a chance for rebuttal? MAYOR GLAISYER: I was hoping that the Council would take this under advisement and give it ten days for written rebuttal, because I'm sure that we would be here going back and forth all evening. Does the Council have any opinion on that? MR. KINGSFORD: I would think it would be a good idea to leave some time for written rebuttal on both L ~ 120 • • • • [~ • [~ • • 1 sides. I agree with the Mayor; weed probably be here a 2 few hours. 3 f~1R. BREWER: Could we limit the time? 4 MR. KINGSFORD: Are you talking about now, Bill? 5 I~1R. BREWER: Yes. 6 MR. fCINGSFORD: I thought we were -- 7 P1R. TOLSMA: It might be appropriate to leave 8 the record open, to g et the information. Ind advise we 9 leave the record open for a week to ten days for written 10 rebuttal. I believe that will be the most efficient. 11 MR. KINGSFORD: Mr. Mayor, I move that we take 12 the matter under advi sement except for written testimony 13 for a period of ten d ays, and at our earliest convenience 1~1 schedule workshops to begin deliberation on the paperwork 15 that we have received and will be receiving. 16 h1R. ORTON: I second it. 17 h1AY0R GLAISYER: There has been a motion made 18 and seconded to take the issue of the comprehensive plan 19 amendments and the an nexation of Mr. Paul Quong under 20 advisement and to inf orm the public that they have ten 21 days to make written comment pro or con again and that 22 the City Council will start scheduling workshop sessions 23 to digest the materia l that has been presented this 24 evening. 25 All those in favor? • • 121 • • C~ • • • • • 1 2 3 4 5 6 7 8 9 10 11 12 13 i4 15 16 17 18 1g 20 21 22 23 24 25 (Unanimous affirmative response by Council members.) MAYOR GLAISYER: Opposed? (No response.) MAYOR GLAISYER: Motion carries. Thank you very much, Ladies and Gentlemen, for staying. (Discussion off the record.) (Whereupon it was moved by A1r. Orton to adjourn the hearing and seconded by Mr. ~Cingsford and unanimously carried, in favor of the motion, by Council members.) (The hearing concluded at 10:36 p.m.) --00000000-- ~0~4 0~- ~ y cs ,. ~ ~ ~ 'h' s'.Y i "r~ i S? 9yf.'i` .~ PAZ ;.y f". rj•~ F^ "f~ ~ ~:^a~ ">5 ~M F., f ,~ r iy ~ ,~ ~b'i .t f #F S 4 ~~ ~ _ M1~. "~ _q T't i ^}c~~ k ~ fi' i„ ;.;f ~' .'` j .. ~ fk -, ~. ^,a ~{d -~ '~:.~ 'v '"> )} #t '~' .~?;( ~ e{ ~ :~. ~ t X' ` '~' r'' °. r ~ r ~. ~ tf s w.~ ~'~ 'P ~ii r ~ F~. ~} `~` y ~•~,G OFF ~ + .} ( t. ~ ~-~.r f 7 } ~ k' ~ I~ v t ~G'!~~ .,. ~ dos `y r '} c ' V ! ~ ~ ~ .. ~ - F ~ S 3 h' ` ~ ~ ~ ..' rT --t ,- `F 1Y ~' t ~ !~ ' f -. -~ 3s ~ i o c •- ,. ~ .a f z -,. {V •K`" ~ k tti ~ S }, :: k:. 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