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HomeMy WebLinkAbout2023-03-13 URA MinutesWORKSHOP SESSION FOR DISCUSSION OF CURRENT AND PROJECTED CALDWELL URBAN RENEWAL PROJECTS MARCH 13, 2023 5:00 P.M. Chairman Porter opened the workshop at 5:00 p.m. Raelynn North, URA Treasurer, led the discussion, and began by reviewing the fiscal year 2023 budget, highlighting budget projections for both the recently sunsetted East Urban Renewal Project area, and the new North Caldwell Urban Renewal project area. Working from a handout provided to the Commissioners, she reviewed the budget amounts line by line and noted that the budget for FY2023 was approved in August 2022, and finalized expenditures were completed in December 2022. She also clarified that the final closeout budget for the East Urban Renewal project area will show actual expenditures approved by the Agency. Ms. North then outlined amounts obligated to current approved URA Projects, and identified where each project was in terms of budgeted amounts expended versus what was left to be expended before project completion. Upon the request of the Commissioners, Robb MacDonald gave a summary overview of a couple of the specific projects that are still in process. The workshop ended at 5:19 p.m. CALDWELL URBAN RENEWAL AGENCY REGULARLY SCHEDULED MEETING March 13, 2023 b:00 P.M (ROLL CALL) The regularly scheduled meeting of the Caldwell Urban Renewal Agency convened at 6:00 p.m. in the Caldwell Police Department Community Room with Chairman Porter presiding. The URA Secretary called the roll. Present: Commissioner Porter, Commissioner Doty, Commissioner Warwick, Commissioner Brooks, Commissioner Moore, Commissioner Allgood, and Commissioner Garcia. Absent: None. (CONFLICT OF INTEREST DECLARATION) None. (SPECIAL PRESENTATIONS) None. (PUBLIC COMMENTS) None. (CONSENT CALENDAR) [AU Consent Calendar items are considered action items] 1) Approve minutes from the Urban Renewal Agency Regularly Scheduled Meeting held on February 13, 2023, MOVED BY Warwick, SECONDED by Doty to approve the Consent Calendar as printed. Pagel of 7 Roll call vote: Those voting yes: Warwick, Brooks, Moore, Allgood, Garcia, Porter, and Doty. Those voting no: none. Absent or not voting: None. MOTION CARRIED OLD BUSINESS (ECONOMIC DEVELOPMENT ACTIVITY REPORT FROM STEVE JENKINS [FEBRUARY 20231) Current Projects Miscellaneous Updates: Project Stillwater- Industrial park concept on a large parcel near the Sky Ranch Business Park. This project will soon launch phase l of development which will feature a 300k facility. Users have already been predetermined for this business park and the proposed buildings within it. Project Richard- a boutique hotel operator will be visiting Caldwell to further investigate the deChase downtown property. They will be responding to the RFQ and are following up with additional visits to Caldwell. Project Smooth- Juicery in the Boise area that is considering a location in Caldwell. They are investigating multiple locations within our market, including North Ranch. PEG Companies- finalizing plans for their build -for -rent project. The project is valued at $150m across 39 across in East Caldwell, Fat Guys Fresh Deli- would like to open in May. They will be occupying a drive-thru facility in the new BVA retail pad within North Ranch. Project Russ- a manufacturing facility focused on the airplane industry. 50k SF facility that manufactures turbine equipment. Out-of-state enterprise looking to enter our market. Copium Investments- Purchased the Edmark Plaza on the Blvd. They're working on attracting new tenants and constructing buildings within the complex. Working on doing more projects in the near future. Project Yanke- Continue working with a large grocer interested in the Caldwell area. Communication is ongoing with ITD to meet their access needs for the location of interest. Project Greenbriar: visited Caldwell recently and has determined two locations that will likely suit their needs. Phelan Development — they'll be breaking ground in the spring on four industrial buildings on highway 20;26 and Smeed Pkwy (252k SF). Project St. George- large scale mixed -use development along highway 55. They're looking at commercialiresidential opportunities within the area. City & Commerce Magazine- Mr. Jenkins noted that Caldwell will be highlighted as their March feature. North Caldwell URA: District 26: working with this group regarding plans to annex. As we review their site plan, we continue investigating the timing for utility infrastructure planned for the area. Project Grizzly: financing, planning, and coordination continue to move forward. Project Family- family -oriented entertainment concept that is interested in the Caldwell region. Met with them and their engineer recently to discuss utility infrastructure in North Caldwell. Project Ag- manufacturer visiting Caldwell in April. They've identified 40 acres in North Caldwell. Downtown Updates: Page 2 of 7 613 Main Street closed recently. They are planning on demolishing the building and constructing a new two-story concept at the location. Dechase Miksis- the hotel RFQ closes at the end of March. Continuing to work with Dechase Miksis on their parking agreement downtown. This agreement refers to parking permits and the location(s) of the available off-street parking. Loading zones needed downtown Parking workshop discussion recently. Plans to approach City Council with a request to conduct a parking study and disseminate an RFP. Takeaways: • Caldwell is continuing to receive retailicommercial interest from national users • Industrial activity continues to grow and this hasn't slowed down • Supplies are still high cost and the supply chain continues to be challenging • Residential activity is slowing but we have 1500 units or so in the pipeline, which will put our community in a great position moving forward for housing. Chairman Porter asked Mr. Jenkins to give a quick review for our new Commissioners of Steven's role in Economic Development: Mr. Jenkins replied that overall, the Economic Development role is to help create jobs and a flow of wealth within the community. Attract different business groups to come into our market. 1. Help create jobs and a flow of wealth within the community. 2. Attract different business groups to come into our market. Look to fill gaps for our citizens. 3. Business retention meet their needs and what they are needing to do. 4. Expand like to see businesses expand. Specific to Mr. Jenkins' role; his focus is more on industrial prospects, attracting businesses, and developing in Urban Renewal areas. Ms. Morales works to promote the downtown for new business and business owner follow-up. In response to a question from Commissioner Moore regarding collaboration with other City development teams, Mr. Jenkins responded that they work and meet with regional partners on a regular basis and share ideas. Great relationships with the community. (ECONOMIC DEVELOPMENT ACTIVITY REPORT FROM OFELIA MORALES IFEBRUARY 20231) Downtown Updates: Project Strong (Update): local retail business that is seeking other location options within our downtown closer to the plaza. Connected business with another business for upstairs space. There is now one more year left on the lease, connected them with possible future space on the plaza. New Space available until the fall. Their last day in their current space will be April 15, Project Falcon (Update): Connected with this this business as it was recently acquired by local family, business seeking to expand to Canyon County in the near future. They found a location in another Canyon County community, but will consider Caldwell in the future. Project Corn (Update): Working with family to purchase franchise. This franchise would be the first in the state of Idaho. Franchise wanted 3 units purchased at $300K per unit and assets of 2 million. Family was only interested in purchasing one unit. Project Family (Update): Salon seeking space to open a full service salon. Space has been identify. The owner of the space has them on a list of potential tenants. Project Duck (Update): working with this business to help fill their restaurant space. The space has been vacant for about 2 years ago. They have a potential end user (Restaurant) that is seeking to lease the space for I Oyears New Projects: Page 3 of 7 Project House: This business would be a first concept to downtown, in the early stages of identifying space and exploring the concept. Project Line: seeking a space that will allow for quick pick-ups;'small drive through Project Athletic: Local Business out of Ada County that is seeking to expand, will combined outdoor door space with indoor space. Project Genius: Local Caldwell family seeking to offer Services to ages 4-12 Project Collect: Business owners from Ada County considering a new concept in Caldwell. They currently have two different concepts in Ada County. Ofelia Morales, Economic Development, added to Mr. Jenkins' comments and stated that much of the feedback received from those they meet with centers around their ability to provide a thorough overview of what is available in our community, and that makes them want to come back and do business in our community. In response to a question from Commissioner Moore regarding whether downtown parking issues comes up in discussions with developers as a detriment, Ms. Morales stated that it is rarely brought up as an issue. She further noted that most of the business looking to possibly locate in the downtown are local (primarily from Ada County), and don't see parking as an issue in our community. NEW BUSINESS (ACTION ITEM. PUBLIC HEARING (LEGISLATIVE) FOR PUBLIC COMMENT ON THE CALENDAR YEAR 2022 ANNUAL ACTIVITIES REPORT FOR THE CALDWELL URBAN RENWAL AGENCY) Raelynn North, URA Treasurer provided copies of the report to the Commissioners, and noted that the Annual Report is an Idaho State requirement. The report and the financial statements primarily highlight the Agency projects of the past year, and how they fit the purpose and goals of the Agency, as well as funding allocations for each project in the East Urban Renewal project area. Ms. North reported that in 2022, the Agency paid off three of five bonds, and that the budget complies with requirements of the Idaho Controllers Office. Chairman Porter noted that there was no one signed up to speak on this item. MOVED by Warwick, SECONDED by Doty to close the public hearing. MOTION CARRIED (ACTION ITEM. CONSIDER URA RESOLUTION NO. 2023-03 ACCEPTING THE 2022 CALENDAR YEAR ANNUAL ACTIVITIES REPORT FOR THE CALDWELL URBAN RENEWAL AGENCY) MOVED by Allgood, SECONDED by Warwick to accept the 2022 Calendar Year Annual Activities Report for the Caldwell Urban Renewal Agency. Roll call vote: Those voting yes: Allgood, Garcia, Porter, Doty, Warwick, Brooks, and Moore. Those voting no: none. Absent or not voting: none. MOTION CARRIED (ACTION ITEM. ACCEPT THE URA AUDIT REORT FROM EIDE BAILLY FOR THE YEAR ENDED SEPTEMBER 30, 2022) Rachelle Castleberry, City Treasurer, commented that she had prepared a detailed project summary showing the major projects in the East Urban Renewal project area, and will forward it to any of the Commissioners who wish a copy. Ms. Castleberry reviewed the financial statements and outlined the information in the audit report to the URA Commissioners, focusing specifically on pages 12 and 13. She noted that the remaining bond payments would be completed in the current 2023 year, and detailed the items that bring the fund balance to match the projected expenditures on the final project list. Page 4 of 7 Commissioner Doty noted that the audit report identifies two significant risks, and asked if anything had been done to reduce those risks. Ms. Castleberry responded that the risk identified is new this year, likely due the delay between the resignation of the Finance Director and the hiring of a new Director. She also stated that the Finance Department has already taken steps to mediate the risk by taking the City Treasurer out of the preparation and presentation of URA financial statements. The Finance Director will assume those responsibilities, thus providing the necessary internal controls. MOVED BY Doty, SECONDED by Warwick to accept the URA Audit Report as presented. Roll call vote: Those voting yes: Doty, Warwick, Brooks, Moore, Allgood, Garcia, and Porter. Those voting no: none. Absent or not voting: None. MOTION CARRIED (ACTION ITEM. CONSIDER INVOICES FOR PAYMENT FROM THE URBAN RENEWAL AGENCY TREASURER) Raelynn North, URA Treasurer presented the following invoices for payment and recommended approval. VENDOR AMOUNT DESCRIPTION City of Caldwell $ 18,000.00 March Economic Development Contributions Hamilton, Michaelson, Hilty Attorneys at Law $ 9,805.00 February Attorney Services Canyon County $420,087.90 Fair Expo Site Improvements February 2023 DeChase Development $ 53,449.03 Creekside Mixed Use Project January 2023 EideBaill . $ 14,000.00 2022 Annual URA Audit Fee TOTAL $515,341.93 In response to a question by Commissioner Allgood regarding attorney services fees, Ms. North stated that the amount listed is the monthly contracted amount for the current fiscal year. She also noted that the contract is realigned each year, and the increase this year is due to the large uptick in the number of projects and the legal staff time needed for project documents. Commissioner Moore reported that he had asked for specific details regarding the development amounts that appear on the monthly invoice list. He expressed appreciation to Ms. North for the explanations provided and to Ms. Castleberry for providing supporting documents. MOVED by Doty, SECONDED by Moore to approve the invoices for payment as presented. Roll call vote: Those voting yes, Doty, Warwick, Brooks, Moore, Allgood, Garcia and Porter. Those voting no: none. Absent or not voting: None. MOTION CARRIED (ACTIONITEM. TREASURER'S REPORT) MONTHLY CASH RECONCILIATION REPORTS: Raelynn North, URA Treasurer, provided a summary of each of the items in the report, and noted that the increment funds included here do not have the two project areas separated out. Future reports will show them as separate line items. Banner Bank TOTAL LGIP Banner Bank, CD Banner Bank Operating Account Restricted TOTAL Restricted Other Tax District 754,956.09 19,131,793.54 $ 12,909,467.80 $19,886,749.63 $19,131,793.54 Page 5 of 7 Restricted Projects S 5,880,448.81 Restricted URA North S 38,880.67 Unrestricted Operations S 302,996.26 Ms. North clarified the difference between restricted and unrestricted funds. Rachelle Castleberry, City Treasurer, provided the history behind the restricted and unrestricted fund categories and noted that these amounts will likely look different going forward. MOVED by Warwick, SECONDED by Garcia to approve the monthly cash reconciliation report as presented by Ms. North. Roll call vote: Those voting yes: Warwick, Brooks, Moore, Allgood, Garcia, Porter, and Doty. Those voting no: none. Absent or not voting: none. MOTION CARRIED (ATTORNEY'S REPORT) a) Update: Tax Delinquencies and Penalties as Increment Revenue. Douglas Waterman, Agency Attorney, reported that House Bill 150 introduced state legislation which was intended to clarify this issue, however it is likely the issue will not be resolved within the current session. b) Update: Aztec Development (Kimball & Arthurl. Mr. Waterman noted that a change to the footprint of the project will be needed for the purpose of burying overhead power lines. He stated that Mr. Hilty is regularly communicating with City and Development staff to move this along quickly. Mr. Waterman provided a summary of the project and progress seen thus far for the new Commissioners. (COMMISSIONER REPORTS) Commissioner Warwick welcomed the two new Commissioners. Commissioner Allgood reported that the House Bill mentioned in the Attorney's report was introduced because other cities around the State are also raising the same question regarding increment revenue. He summarized other bills that are moving forward during this legislative session. Commissioner Moore expressed appreciation to the late Governor Phil Batt, a long-time Canyon County resident, and a hard-working member of the community. (CHAIRMAN REPORT) No report. (ADJOURNMENT) MOVED by Warwick, SECONDED by Doty to adjourn at 7:05 p.m.. Roll call vote: Those voting yes: Warwick, Brooks, Moore, Allgood, Garcia, Porter, and Doty. Those voting no: none. Absent or not voting: none. MOTION CARRIED Page 6of7 Appro d as wr' t is 10" da of April, 2023_ 4ommissioner/t-orter :o miss' ner Warwi i mmissione A C-) 1 _K--, ChTfnissioner Moore Commissio r Doty Commissioner Allgood GC Zrrs ATTEST: 11RA Secretary or beput OF THE S°fir CO : Page 7 of 7