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HomeMy WebLinkAbout2017-11-13 URA Minutes CALDWELL URBAN RENEWAL AGENCY MINUTES 7:00 P.M. Monday,November 13,2017 (ROLL CALL) The regularly scheduled meeting of the Caldwell Urban Renewal Agency convened at 7:00 p.m. in the Caldwell Police Department Community Room with Vice-Chairman Porter presiding. The secretary called roll. Present: Commissioner Porter, Commissioner Warwick, Commissioner Stadick (via phone),Commissioner Allgood,and Commissioner Ramirez. Absent: Commissioner Hopper. (CONFLICT OF INTEREST DECLARATION) None. (AMEND/APPROVE AGENDA) MOVED by Warwick, SECONDED by Allgood to amend the agenda by: Adding Item 43 under the Consent Calendar to read: Approve Resolution authorizing the dedication of right-of-way from the Urban Renewal Agency for property known as 5221 E. Linden Street for the purpose of future development. REASON: This item was not available until after the agenda was posted. Adding an item under New Business adding an item requesting invoice approval to read: Vendor: Kristi Dyer, Amount: $1,045.4, Description: Reimbursement for damaged crops associated with the Capitol Distributing site. REASON: This item was not available until after the agenda was posted. MOTION CARRIED (SPECIAL PRESENTATIONS) None. (PUBLIC COMMENTS) None. (CONSENT CALENDAR) 1) Approve minutes from the Urban Renewal Agency Regularly Scheduled Meeting held on October 9, 2017; 2) Approve request to void URA Resolution No. 2017-37 concerning Warranty Deed (Instrument No. 2017-033603)—Badger Creek Investments,LLC. 3) Approve Resolution No. 2017-40 authorizing the dedication of right-of-way from the Urban Renewal Agency for property known as 5221 E. Linden Street for the purpose of future development. [ADDED] MOVED by Allgood, SECONDED by Warwick to approve the Consent Calendar as amended. MOTION CARRIED OLD BUSINESS: Page 1 of 7 (OCTOBER ECONOMIC DEVELOPMENT REPORT—STEVE FULTZ) Project Rice (Capitol Distributing): Continue to work with the company finalizing details in preparation for closing. Project Cold: Currently under construction. Working now on potential acquisition of second lot for expansion/related industry. Project Russell: Continue working with this project...primary interest is in Sky Ranch and Skyway Business Parks (Van Auker site), needing 15-20 acres for an international food processing business. 300+jobs with$20+million investment. Decision on final site expected after first of the year. New Project from BVEP lead, 450 jobs, non-food related manufacturer. Early stage, employer interviews. Follow-up with site selector on location review Project Racing: Continued communication with this project...their projected timing on location decision is by the end of 2017, construction in 2018. Currently operating in Utah, looking to build shop for a unique business type. Needs 1.5-acre site to build first phase 10,000 sq.ft. shop and office. Continue to work with Idaho Power and Intermountain Gas on expansion of power and gas to the Sky Ranch area in order to accommodate current and future demands. Project Reagan: This is a new project. The company is strongly considering a site in Skyway Business Park for warehousing/distribution and office space. The current status of the project is under contract for the lots,with an expected closing date in mid-January. Project Arrow: This is a new project. An aerospace business from California, they are considering a site in Skyway Business Park. Initial facility of 30,000 sq. ft. Working with a brokerage firm on this project,total investment and job creation is not yet available. Potential tenant for Strider Group building...working with business and brokerage firm on securing a user for the full 60,000 sq.ft.building in Sky Ranch. Project Plastic: This is a new project. The business is considering relocation from California to the Sky Ranch Business Center and in operation by summer 2018. The company is in the plastics production industry and will build approximately 12,000 sq. ft. of space for production and office. Discussion followed concerning the company's interest in the property at 5221 E.Linden. Discussion followed. MOVED by Allgood, SECONDED by Ramirez recommend that Mr. Fultz negotiate the opportunity for the sale of property at 5221 E.Linden with the interested buyer. MOTION CARRIED (OCTOBER ECONOMIC DEVELOPMENT REPORT—KERI SIGMAN) Indian Creek Plaza: Weekly construction/design meetings. Ice Ribbon/Rink pre-construction meeting. Ongoing alleyway utility coordination, including connections to the new utility services. Continued fundraiser/donor development work. Brick Campaign started: www.indiancreekplazabricks.com. Coordination with DC/ICP Executive Director; assisted with interviews for Administrative Assistant, Marketing Director,and Events Director. Coordination with DC on the management agreement. Facade & Downtown Incentives: Hosted a mandatory pre-bid meeting for the Local Business Improvement District(LBID). One bid was received for the Local Business Improvement District; it was rejected. Worked with Public Works&Engineering to move the program forward. Worked with other plaza property owners on the Hire and Reimburse program. Nearly all property owners surrounding the plaza are participating in some form. Helped property owners with Design Review applications and submittals for October approvals. Indian Creek Musical Art Park: Selected final artist and began final design proposal. Trolley Square Project: Reel Theater is under construction. Coordination with theater regarding parking and trash enclosures. Projected opening:May,2018 (depends on winter conditions). Page 2 of 7 Community Development Block Grant (CDBG): Coordinated overlapping CDBG and downtown revitalization projects with Elizabeth McNannay. College Marketplace: Coordination with Rocky Mountain Development regarding retail pads. Grace Assisted Living is under construction. Buxton: Buxton Company representative attended the October Urban Renewal to review year one results. Beginning to prepare for 2'year site selection. Discussion followed concerning the "priority area" for the 2nd year site selection. Ms. Sigman stated that the two areas have been discussed with Buxton Company: 1)Ustick Road area; or 2) 2111 Avenue/Franklin Road to Smeed Parkway. It was determined that the emphasis should be the 21 st Avenue/Franklin Road to Smeed Parkway area. Saratoga: Ms. Sigman reported that she recent met with Caldwell Hospitality Group, reviewed significant cost increases and re-reviewed the Urban Renewal's Request for Proposal and the developers' response to the Urban Renewal Agency. She read into the record an email received by Devinder Singh of Caldwell Hospitality, LLC: "The downtown hotel project was started with sincere intensions. However; when we started the preliminary plan and shared with few contractors, the cost did not justify the project to continue to build a hotel compared to the revenue projections. Even though we have spent some funds which are not recoverable. If City proposes, more incentives such as no cost for land, outside work such as sidewalks, will make this project more affordable to build. We are thankful for the city and Ms. Sigman for providing their assistance for this project." The development team will be working on the project. She noted that it will be a City Council driven project and a recommendation will be forthcoming to the URA Commissioners for final approval. In response to questions from Commissioner Ramirez, E1Jay Waite reported that URA provided demolition/clearing/purchase of the land. Approximately $1.5 million has been invested by the Urban Renewal Agency to prepare the site for development. Ms. Sigman stated that she has been working with members of the Sunnyslope Wine Commission who has facilitated a study for the purpose of determining future growth of the Sunnyslope Wine Trail Region in relationship to tourism. The study identified downtown Caldwell as the location of a "boutique"hotel. Project Duke: Potential downtown restaurant. BiMart is coming to the vacant site on 10"Avenue -previously the site of Paul's Market. Four economic development marketing videos have been completed and will soon be released. Recruitment: All listed recruitment projects are still active and are in some form of business development, site selection,or start-up. • Restaurants • Retailer • Specialty Store • Multi-Family Residential • Hospitality • Brewery • Special Event Center Other ...... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... • Professional meetings with various industries regarding downtown redevelopment and other commercial retail development throughout the City. • Downtown Business Coordination: Continued working with businesses and property owners on construction/revitalization efforts in downtown(utility relocations,facades,street improvements,etc.). Page 3 of 7 • Design Review Commission: Supported the P&Z Department and local property owners at the first Design Review Commission hearing. Three cases were heard for revitalization efforts of three historic buildings downtown in the City Center District. • 2111 Ave Surplus: Worked with possible restaurant user and expanding business regarding City property to be declared as surplus/ • Idaho Conference on Recreation & Tourism: Attended the annual conference in Coeur D'Alene, Idaho from October 17-19. Focus of conference was on downtown revitalization and Agritourism. • Media Interviews: Idaho Press Tribune and Idaho Business Review (UPDATE REPORT FROM DESTINATION CALDWELL) Kelli Jenkins provided an update report concerning Destination Caldwell. She noted that they recently hired the Indian Creek Executive Director(Wisti Rosenthal) approximately six weeks ago. The Events Director has also been hired this week. Fundraising is the priority at this time. NEW BUSINESS: (CONSIDER INVOICES FOR PAYMENT FROM THE URBAN RENEWAL AGENCY TREASURER E1Jay Waite,URA Treasurer at 411 Blaine Street,provided the list of invoices for payment: VENDOR AMOUNT DESCRIPTION HMH $4,500.00 October Attorney Fees City of Caldwell—Econ.Dev. $18,000.00 November Economic Development Contribution Electric Wholesale Supply $40,650.00 Indian Creek Plaza—Electrical City of Caldwell $352,731.49 Reimbursement for City Project Costs Paid City of Caldwell $2,910.37 Reimbursement for URA Expenses Paid Redevelopment Association $3,250.00 Membership Dues/Legislative of Idaho Contribution FY-2018 Suzy Crisci $380.00 Reimbursement/Home Inspection 5221 E.Linden Skinner Land Survey $2,500.00 Record of Survey/0 KCID Barnes Construction $9,185.25 Building Repairs/217 S.Kimball/ Painted Lad AMFEC Inc. $25,000.00 BIG—Payment 43 Johnson Thermal Systems $12,500.00 BIG—Payment 47 GGLO $185,962.50 Indian Creek Plaza/Design Services: August& September Caldwell Irrigation Lateral $2,721.92 Irrigation Assessments 2018 Pioneer Irrigation Lateral $6,317.76 Irrigation Assessment 2018 McAlvain Construction $308,539.20 Indian Creek Plaza/Construction/ October Kristi Dyer $1,045.44 Reimbursement for damaged associated with the Capitol Development site. TOTAL $976,193.93 RATIFICATION $449,722.29 Indian Creek Plaza/ McAlvain Construction,Inc. Construction/October MOVED by Allgood, SECONDED by Warwick to approve the invoices for payment as presented. MOTION CARRIED Ratify Page 4 of 7 (APPROVE RESOLUTION NO. 2017-41 AUTHORIZING THE EXECUTION OF THE REAL ESTATE LEASE AGREEMENT FOR PROPERTY KNOWN AS 215 S. KIMBALL EFFECTIVE JANUARY 1,2018—DECEMBER 31,2018) E1Jay Waite, 411 Blaine Street, provided an update report concerning tenant leases at the URA properties located at 215 and 217 S. Kimball. He noted Carol Mitchell met with each of the tenants and reviewed the lease information with them. Each tenant will be responsible for their building's electrical utility billing as outlined within the lease agreements. MOVED by Warwick, SECONDED by Allgood to approve Resolution No. 2017-41 authorizing the execution of the lease agreement at 215 S.Kimball as printed. MOTION CARRIED (APPROVE RESOLUTION NO. 2017-42 AUTHORIZING THE EXECUTION OF THE REAL ESTATE LEASE AGREEMENT FOR PROPERTY KNOWN AS MEZANINE AT 217 S. KIMBALL EFFECTIVE JANUARY 1,2018—DECEMBER 31,2018) MOVED by Warwick, SECONDED by Ramirez to approve Resolution No. 2017-42 authorizing the execution of the lease agreement at 217 S.Kimball(Mezanine)as printed. MOTION CARRIED (APPROVE RESOLUTION NO. 2017-43 AUTHORIZING THE EXECUTION OF THE REAL ESTATE LEASE AGREEMENT FOR PROPERTY KNOWN AS 217 S. KIMBALL EFFECTIVE JANUARY 1,2018—DECEMBER 31,2018) MOVED by Ramirez, SECONDED by Warwick to approve Resolution No. 2017-43 authorizing the execution of the lease agreement at 217 S.Kimball as printed. MOTION CARRIED (TREASURER'S REPORT) E1Jay Waite, URA Treasurer at 411 Blaine Street, presented the Monthly Cash Reconciliation Report and recommended its approval: First Interstate Bank-Checking Ending Balance as of October 31,2017 $6,303,209.27 Restricted amount(Other Tax Districts) $3,919,592.42 Restricted(Caldwell) $1,238,552.28 Restricted(URA Job Creation) $1,145,064.57 Bank of the Cascades Time CD 41 Ending Balance as of October 31,2017 $250,000.00 (Balance will remain constant. Interest earnings deposited to Business Checking) Local Government Investment Pool Ending Balance as of October 31,2017: $110,010.39 Zions Bank(Bond Debt Service) Ending Balance as of October 31,2017: $3,516,898.66 MOVED by Allgood, SECONDED by Warwick to approve the financial report as presented. MOTION CARRIED UPDATE REPORTS: Page 5 of 7 • Hickman Property: E1Jay Waite reported that if the parcel is sold for the appraised price, the funds could be used to negotiate for the Crisci property. The two properties are appraised at approximately the same amount. • Plaza Financing: E1Jay provided a handout outlining possible options to pay off the plaza project by April 2018. He noted that the Urban Renewal Agency could contact the taxing districts to request availability to incorporate increment revenues and participate in a "Project Construction Investment Pool" by December 1,2017. The investment pool would carry an annual interest rate of 2.5%. Invested funds would be repaid over a period of four (4) years but no later than November 30, 2021. E1Jay is currently working with the City Attorney concerning this matter. He noted that the City uses this method with its internal funds to finance its own projects. • Capitol Distributing: E1Jay reported on the crop damage, which happened when the developer hired a firm to investigate the property site. The crop damage to the farmer is $7,930.00 (calculated by Brent Orton). He also noted that when the parcel was purchased, there was an active farm lease on the parcel. The URA portion of the farm lease amounts to $6,884.56. The City Attorney will send an invoice to Capitol Distributing for reimbursement of the$7,930.00 since they were responsible for the crop damage. • 2018 Increment Estimate: Mr. Waite distributed a handout outlining the current estimated URA tax increment as provided by County Controller Zach Wagoner. The total value of the real and personal property is $425,435,766 for Canyon County. The City of Caldwell's total value of the real and personal property is $419,744,406. With the addition of the operating value, the amount totals $435,440,885. Calculations with the tax rate of 0.008936479, brings the projected increment tax revenue to $3,891,308.32. He noted that increment payments are received bi-annually from Canyon County. Mr. Waite provided a handout showing the projected tax increment from Southwark Metal,American Foods, Manufacturing, Gem State Manufacturing, and Project Fresh. He reported that the Urban Renewal Agency increment sunsets in 2022 and increment revenue ceases in 2023. Caldwell has benefited by establishing the Urban Renewal Agency in light of job creation and community investment. • Movie Theater: The Mayor provided an update report on the Movie Theater Project in downtown Caldwell. The property transfer handled through Pioneer Title is near completion. A check will be issued to the Urban Renewal Agency in the approximate amount of$25,000 at the time of closing. He noted that the developer is planning to open the theater in May 2018. Keri Sigman has been very active in meeting with potential developers and business owners concerning the downtown area. • Smeed Parkwav Realignment Project The Mayor reported that the realignment project has been completed by employees of the Street Department, Water Department, and Parks Department. Landscaping will be installed in the spring 2018. He expressed appreciation to the City crews for their outstanding work on this project. • Crisci Property: The Mayor reported that he recently met with Ms. Crisci. There is no longer a desire by the Crisci family to trade properties involving the Hickman site. City staff have been working with Idaho Power to identify the 2.5 acres next to the Fresca site,to be used for the substation. (ATTORNEY'S REPORT) Maren Erickson of Hamilton, Michaelson, and Hilty reported that City Attorney Mark Hilty has been involved with the numerous URA development projects. (CHAIRMAN'S REPORT) Page 6 of 7 Chairman Porter reported that the Caldwell Housing Authority recently obtained three pieces of property at the corner of Chicago and Kimball for future development from the Canyon County tax deed sale. (COMMISSIONER REPORTS) Commissioner Warwick expressed her excitement with the progress of development within Caldwell. (EXECUTIVE SESSION PURSUANT TO IDAHO CODE,SECTION 74-206,SUBSECTION(C)FOR THE PURPOSE OF DISCUSSING THE ACQUISITION OF OR AN INTEREST IN REAL PROPERTY NOT OWNED BY A PUBLIC AGENCY) MOVED by Allgood, SECONDED by Warwick to convene into Executive Session pursuant to Idaho Code, Section 74-206, Subsection(c)for the purpose of discussing the acquisition of or an interest in real property not owned by a public agency at 8:22 p.m. Roll call vote. Those voting yes: Allgood, Ramirez, Porter, Warwick, and Stadick. Those voting no: none. Absent and/or not voting:Hopper. MOTION CARRIED MOVED by Warwick, SECONDED by Ramirez to reconvene into Regular Session. MOTION CARRIED (ADJOURNMENT) MOVED by Allgood, SECONDED by Warwick to adjourn at 8:37 p.m. Approved as written this 111n day of December 2017. Commissioner Hopper Commissioner Porter Commissioner Warwick Commissioner Stadick Commissioner Allgood Commissioner Ramirez ATTEST: Debbie Geyer,URA Secretary Page 7 of 7