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URBAN RENEWAL PLAN FOR THE
NORTH INTERCHANGE URBAN RENEWAL PROJECT
THE URBAN RENEWAL AGENCY FOR THE CITY OF REXBURG,
IDAHO
Ordinance No. 1134
Adopted December 02, 2015
Effective December 08, 2015
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TABLE OF CONTENTS
Page
100 INTRODUCTION .............................................................................................................. 5
101 General Procedures of the Agency ......................................................................... 8
102 Provisions Necessary to Meet State and Local Requirements ................................ 8
102.1 Conformance with the Idaho Urban Renewal Law of 1965, as
Amended .................................................................................................... 9
103 History and Current Conditions of the Area ......................................................... 10
104 Purpose of Activities ............................................................................................. 12
105 Open Land Criteria ............................................................................................... 12
200 DESCRIPTION OF PROJECT AREA ............................................................................. 13
300 PROPOSED REDEVELOPMENT ACTIONS ................................................................ 13
301 General .................................................................................................................. 13
302 Urban Renewal Plan Objectives ........................................................................... 14
303 Participation Opportunities and Agreement.......................................................... 16
303.1 Participation Agreements .......................................................................... 16
303.2 [Reserved] ................................................................................................ 18
304 Cooperation with Public Bodies ........................................................................... 18
305 Property Acquisition ............................................................................................. 19
305.1 Real Property ............................................................................................ 19
305.2 Personal Property ...................................................................................... 21
306 Property Management ........................................................................................... 21
307 Relocation of Persons (Including Individuals and Families), Business Concerns,
and Others Displaced by the Project ..................................................................... 22
308 Demolition, Clearance, and Building and Site Preparation .................................. 22
308.1 Demolition and Clearance ......................................................................... 22
308.2 Preparation of Building Sites .................................................................... 22
309 Property Disposition and Development ................................................................ 23
309.1 Real Property Disposition and Development ............................................ 23
309.1.1 General .............................................................................. 23
309.1.2 Disposition and Development Documents ........................ 23
309.1.3 Development by the Agency ............................................. 26
309.1.4 Development Plans ........................................................... 27
310 Personal Property Disposition............................................................................... 27
311 Rehabilitation and Conservation ........................................................................... 27
312 Participation with Private Development or Public Development ......................... 27
313 Conforming Owners.............................................................................................. 28
314 [Reserved] ............................................................................................................ 28
400 USES PERMITTED IN THE PROJECT AREA.............................................................. 28
401 Redevelopment Plan Map and Development Strategy ......................................... 28
402 Designated Land Uses........................................................................................... 28
403 [Reserved] ............................................................................................................. 28
404 Public Rights-of-Way ........................................................................................... 29
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405 Other Public, Semi-Public, Institutional, and Nonprofit Uses .............................. 29
406 Interim Uses .......................................................................................................... 30
407 General Controls and Limitations ......................................................................... 30
407.1 Construction .............................................................................................. 30
407.2 Rehabilitation and Retention of Properties ............................................... 30
407.3 Limitation on Type, Size, and Height of Buildings .................................. 30
407.4 Open Spaces, Landscaping, Light, Air, and Privacy ................................ 30
407.5 Signs 31
407.6 Utilities ...................................................................................................... 31
407.7 Incompatible Uses ..................................................................................... 31
407.8 Nondiscrimination and Nonsegregation ................................................... 31
407.9 Subdivision of Parcels............................................................................... 31
407.10 Minor Variations ....................................................................................... 31
408 Design for Development ....................................................................................... 32
409 Off-Street Loading ................................................................................................ 32
410 Off-Street Parking ................................................................................................. 33
411 Nonconforming Uses ............................................................................................ 33
412 Design Guidelines for Development under a Disposition and Development
Agreement or Owner Participation Agreement .................................................... 33
500 METHODS OF FINANCING THE PROJECT ............................................................... 34
501 General Description of the Proposed Financing Method ...................................... 34
502 Revenue Bond Funds ............................................................................................ 34
503 Other Loans and Grants ........................................................................................ 34
504 Revenue Allocation Financing Provisions ............................................................ 34
504.1 Economic Feasibility Study ...................................................................... 36
504.2 Assumptions and Conditions/Economic Feasibility Statement ................ 36
House Bill 315 adopted by the 62nd Idaho Legislature amends Idaho Code Section
63-602KK, and provides for personal property tax exemption to
businesses. Application of the exemption may have the effect of reducing
the increment value and the base value. The Agency, for this Project
Area, will not receive any backfill funds from the State to replace revenue
lost by the imposition of the personal property tax exemption. The Study
has taken HB315 into account. ................................................................. 37
504.3 Ten Percent Limitation ............................................................................. 37
504.4 Financial Limitation .................................................................................. 38
504.5 [Reserved] ................................................................................................ 39
504.6 Participation with Local Improvement Districts and Business
Improvement Districts .............................................................................. 39
504.7 Issuance of Debt and Debt Limitation ...................................................... 39
504.8 Impact on Other Taxing Districts and Levy Rate ..................................... 39
Likewise, the Study has taken into account the following legislative changes
impacting the revenues that flow to the Agency: (1) House Bill 697,
adopted by the 61st Idaho Legislature amending Idaho Code § 50-2908 to
provide that urban renewal agencies no longer receive an allocation from
levies for the payment of judgments pursuant to section 63-1305A, Idaho
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Code, until after July 1, 2017; and (2) House Bill 76 adopted by the 63rd
Idaho Legislature amending Idaho Code § 50-2908 to provide that urban
renewal agencies no longer receive an allocation from the school
emergency levies after July 1, 2015. ......................................................... 42
505 Phasing and Other Fund Sources .......................................................................... 42
506 Lease Revenue and Bonds .................................................................................... 42
This Plan contemplates the Agency’s issuance of a bond in the estimated amount of
$5,385,000 to be used to complete the first three years of planned construction of
public infrastructure. Construction beyond that amount will be funded on a pay-
as-you-go basis, unless further bonding is deemed necessary at a later date.
Additional details are included in Attachment 5C. ............................................... 43
507 [Reserved] ............................................................................................................ 43
600 ACTIONS BY THE CITY AND THE COUNTY ........................................................... 43
601 Maintenance of Public Improvements .................................................................. 44
700 ENFORCEMENT ............................................................................................................. 45
800 DURATION OF THIS PLAN, TERMINATION, AND ASSET REVIEW .................... 45
900 PROCEDURE FOR AMENDMENT ............................................................................... 46
1000 SEVERABILITY .............................................................................................................. 47
1100 ANNUAL REPORT AND OTHER REPORTING REQUIREMENTS .......................... 47
1101 APPENDICES, ATTACHMENTS, EXHIBITS, TABLES ............................................. 47
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Attachments
Attachment 1 Map of Urban Renewal Project Area and Revenue Allocation Area
Attachment 2 Description of Urban Renewal Project Area and Revenue Allocation Area
Attachment 3 Private Properties Which May be Acquired by the Agency (Limited to
Public Improvements and Facilities)
Attachment 4 Map Depicting Expected Land Use and Current Zoning Map of the Project
Area
Attachment 5 Statement of Proposed Public Improvements, Costs, Revenue, Tax
Impacts, and Financing Methods
Attachment 5A Estimated Net Taxable Value of New Private Development
(Commercial/Residential)
Attachment 5B Estimated Annual Revenue Allocations (Economic Feasibility Study)
Attachment 5C Estimated Annual Revenues and Costs
Attachment 6 Madison County Board of County Commissioners Resolution No. 375
Attachment 7 Sugar City City Council Resolution No. 2014-2
Attachment 8 Rexburg City Council Resolution No. 2014-16
Attachment 9 Madison County Board of County Commissioners Resolution No. 392
Attachment 10 Rexburg City Council Resolution No. 2015-10
Attachment 11 Agricultural Consents, without attachments
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URBAN RENEWAL PLAN FOR THE
NORTH INTERCHANGE URBAN RENEWAL PROJECT
THE URBAN RENEWAL AGENCY FOR THE CITY OF REXBURG
CITY OF REXBURG, IDAHO
100 INTRODUCTION
This is the Urban Renewal Plan (the “Plan”) for the North Interchange Urban Renewal
Project (the “Project”) in the City of Rexburg (the “City”), state of Idaho, and consists of the text
contained herein and the following attachments:
Map of the Urban Renewal Project Area and Revenue Allocation Area Map
(Attachment 1),
The Description of the Urban Renewal Project Area Boundaries and Revenue
Allocation Area (Attachment 2),
Private Properties Which May be Acquired by Agency (Limited to Public
Improvements and Facilities) (Attachment 3),
Map Depicting Expected Land Uses and Current Zoning within Project Area
(Attachment 4),
Statement of Proposed Public Improvements, Costs, Revenue, Tax Impacts, and
Financing Methods (Attachment 5),
Estimated Net Taxable Value of New Private Development (Commercial/Residential)
(Attachment 5A),
Estimated Annual Revenue Allocations (Economic Feasibility Study) (Attachment 5B),
Estimated Annual Revenues and Costs (Attachment 5C),
Madison County Board of County Commissioners Resolution No. 375 (Attachment 6),
Sugar City City Council Resolution No. 2014-2 (Attachment 7),
Rexburg City Council Resolution No. 2014-16 (Attachment 8),
Madison County Board of County Commissioners Resolution No. 392 (Attachment 9),
Rexburg City Council Resolution No. 2015-10 (Attachment 10), and
Agricultural Consents, without attachments (Attachment 11).
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The term “Project” is used herein to describe the overall activities defined in this Plan
and is in conformity with the statutory definition of an urban renewal project. Reference is
specifically made to Idaho Code Sections 50-2018(10) and 50-2903(13) for the various activities
contemplated by the term “Project.” Such activities include both private and public development
of property within the urban renewal area. The term “Project” is not meant to refer to a specific
activity or development scheme. The North Interchange Project Area is also referred to as the
Project Area.
This Plan was prepared by the Board of Commissioners, consultants, and staff of the
Urban Renewal Agency for the City of Rexburg (the “Agency”) and reviewed and recommended
by the Agency pursuant to the Idaho Urban Renewal Law of 1965, Chapter 20, Title 50, Idaho
Code, as amended (the “Law”), the Local Economic Development Act, Chapter 29, Title 50,
Idaho Code, as amended (the “Act”), and all applicable local laws and ordinances.
The proposed redevelopment of the Project Area as described in this Plan conforms to the
The City of Rexburg Vision 2020 Comprehensive Plan, as amended (the “Comprehensive
Plan”), and adopted by the Rexburg City Council (the “City Council”).
The Agency may create several planning documents that generally describe the overall
Project and identify certain specific public and private capital improvement projects. Because of
the changing nature of the Project, these documents, by necessity, must be dynamic and flexible.
The Agency anticipates that these documents will be modified as circumstances warrant. Any
modification, however, shall not be deemed as an amendment of this Plan. No modification will
be deemed effective if it is in conflict with this Plan. The planning documents are purposely
flexible and do not constitute specific portions of the Plan. Provided, however, prior to the
adoption of any planning document or proposed modification to any planning document, the
Agency shall notify the City and publish a public notice of such proposed modification at least
thirty (30) days prior to the consideration of such proposed modification, thus providing the City
and any other interested person or entity an opportunity to comment on said proposed
modification. The Board of Commissioners of the Agency (the “Board”) shall consider any such
comments and determine whether to adopt the modification. The planning documents apply to
redevelopment activity within the Project Area as described herein. In the event of any conflict
between this Plan and the appended documents, the provisions of this Plan shall control. The
Agency intends to rely heavily on any applicable City design standards which may cover all or
part of the Project Area.
This Plan provides the Agency with powers, duties, and obligations to implement and
further the program generally formulated in this Plan for the redevelopment, rehabilitation, and
revitalization of the area within the boundaries of the Project Area. The Agency retains all
powers allowed by the Law and Act. Because of the long-term nature of this Plan, and the need
to retain in the Agency flexibility to respond to market and economic conditions, property owner
and developer interests, and opportunities from time to time presented for redevelopment, this
Plan does not present a precise plan or establish specific projects for the redevelopment,
rehabilitation, and revitalization of any area within the Project Area, nor does this Plan present
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specific proposals in an attempt to solve or alleviate the concerns and problems of the
community relating to the Project Area. Instead, this Plan presents a process and a basic
framework within which specific plans will be presented, specific projects will be established,
and specific solutions will be proposed, and by which tools are provided to the Agency to
fashion, develop, and proceed with such specific plans, projects, and solutions.
Implementation of this Plan will require public co-investment to help stimulate desired
private development. Typically, the public will fund enhanced public improvements like
utilities, streets, and sidewalks which, in turn, create an attractive setting for adjacent private
investment for industrial, office, residential and commercial facilities.
The particular projects or redevelopment projects by private entities described herein are
not intended to be an exclusive or exhaustive list of potential redevelopment activity. Allowed
projects are those activities which comply with the Law and the Act and meet the overall
objectives of this Plan. The public-private relationship is crucial in the successful redevelopment
of the Project Area.
The purpose of the Urban Renewal Law will be attained through and the major goals of
this Plan are:
a. The elimination of environmental deficiencies in the Project Area, including,
among others, deteriorated and inadequate public improvements including certain
streets and improvements; improvements to roadways and traffic signals;
sidewalk, curb and gutter improvements; improvements to public utilities
including water and sewer improvements and fire protection systems; streetlights;
other public improvements (including public buildings and facilities); removal,
burying, or relocation of overhead utilities; extension of electrical distribution
lines and transformers; improvement of irrigation and drainage ditches and
laterals; improvement of storm drainage facilities; and environmental remediation
of brownfield sites;
b. The assembly of land into parcels suitable for modern, integrated development
with improved pedestrian and vehicular circulation in the Project Area;
c. The re-planning, redesign, and development of undeveloped or underdeveloped
areas which are stagnant or improperly utilized because of limited traffic access,
underserved utilities, and other site conditions;
d. The strengthening of the economic base of the Project Area and the community
by the installation of needed site improvements to stimulate new private
development providing, employment, and economic growth;
e. The provision of adequate land for parks, open space, street rights-of-way and
pedestrian rights-of-way; sidewalks, street lights, parking facilities, traffic signals;
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f. The reconstruction and improvement of street corridors to allow traffic flows to
move through the Project Area along with the accompanying utility connections,
through the Project Area;
g. The provision of public service utilities such as water system improvements,
sewer system improvements and improvements to storm drainage facilities (which
may be located outside the Project Area);
h. The establishment and implementation of performance criteria to assure high site
design standards and environmental quality and other design elements which
provide unity and integrity to the entire Project Area, including commitment of
funds for planning studies, achieving high standards of development, and
leveraging such development to achieve public objectives and efficient use of
scarce resources;
i. The strengthening of the tax base by encouraging private development, thus
increasing the assessed valuation of properties within the revenue allocation area
and the Project Area as a whole and benefiting the various taxing districts in
which the urban renewal area is located; and
j. The funding of necessary public infrastructure to accommodate both public and
private development.
101 General Procedures of the Agency
The Agency is a public body, corporate and politic, as defined and described under the
Law and the Act. The Agency is also governed by its bylaws as authorized by the Law and
adopted by the Agency. Under the Law, the Agency is governed by the Idaho open meeting law,
(Chapter 2, Title 74, Idaho Code), the Public Records Act (Chapter 1, Title 74, Idaho Code), the
Ethics in Government Act (Chapter 4, Title 74, Idaho Code), financial reporting requirements,
and the competitive bidding requirements under Chapter 28, Title 67, Idaho Code.
Generally, the Agency shall conduct all meetings in open session and allow meaningful
public input as mandated by the issue considered or by any statutory or regulatory provision.
Whenever in this Plan it is stated that the Agency may modify, change, or adopt certain policy
statements or contents of this Plan not requiring a formal amendment to the Plan as required by
the Law or the Act, it shall be deemed to mean a consideration by the Board of such policy or
procedure, duly noticed upon the Agency meeting agenda and considered by the Agency at an
open public meeting and adopted by a majority of the Board members present, constituting a
quorum, unless any bylaw, provision of law, or provision herein provides otherwise.
102 Provisions Necessary to Meet State and Local Requirements
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102.1 Conformance with the Idaho Urban Renewal Law of 1965, as
Amended
a. The laws of the state of Idaho require that an urban renewal plan be
prepared for an area certified as an urban renewal area by the City
Council.
b. As certain properties within the studied area are outside of the boundaries
of the City and within the boundaries of unincorporated Madison County,
and in accordance with Idaho Code § 50-2018(18), the Madison County
Board of County Commissioners adopted Resolution No. 375, on July 28,
2014, finding the area to be a deteriorated and deteriorated area and
finding a need for an urban renewal plan. A copy of Resolution No. 375
is attached hereto as Attachment 6.
c. As certain properties within the studied area are outside of the boundaries
of the City and within the city limits of the city of Sugar City, and in
accordance with Idaho Code § 50-2018(18), the Sugar City City Council
adopted Resolution No. 2014-2, on July 24, 2014, finding the area to be a
deteriorated and deteriorated area and finding a need for an urban renewal
plan. A copy of Resolution No. 2017-2 is attached hereto as Attachment
7.
d. The initially proposed urban renewal area was certified by the Rexburg
City Council by Resolution No. 2014-16 on August 20, 2014. With the
adoption of Resolution No. 2014-16, the City Council found the area to be
a deteriorated and deteriorating area existing in the City as defined by the
Law and Act, and authorized the preparation of an urban renewal plan. A
copy of Resolution No. 2014-16 is attached hereto as Attachment 8.
e. It became apparent that additional property adjacent and contiguous to the
certified area was deteriorating or deteriorated and it was examined to
determine whether such additional area was eligible for urban renewal
planning purposes.
f. Certain properties within the proposed additional area are outside of the
boundaries of the City and within the boundaries of unincorporated
Madison County, and in accordance with Idaho Code § 50-2018(18), the
Madison County Board of County Commissioners adopted Resolution No.
392, on June 15, 2015, finding the additional area adjacent and contiguous
to the previously certified area to be a deteriorated and deteriorated area
and finding a need for an urban renewal plan. A copy of Resolution No.
392 is attached hereto as Attachment 9.
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g. The additional area adjacent and contiguous to the originally certified area
was certified by the Rexburg City Council by Resolution No. 2015-10 on
June 17, 2015. With the adoption of Resolution No. 2015-10, the City
Council found the additional area adjacent and contiguous to the originally
certified area to be a deteriorated and deteriorating area existing in the
City as defined by the Law and Act, and authorized the preparation of an
urban renewal plan for the entire certified area, including the additional
area. A copy of Resolution No. 2015-10 is attached hereto as Attachment
10.
h. In accordance with the Law and Act, the necessary agricultural consents
were obtained from owners of any agricultural operations within the
Project Area that have been used as an agricultural operation for three
consecutive years. A copy of the agricultural consents are attached hereto
as Attachment 11.
i. In accordance with the Law, this Plan was submitted to the Planning and
Zoning Commission of the City. After consideration of the Plan, the
Commission reported to the City Council stating that this Plan is in
conformity with the Comprehensive Plan of the city of Rexburg.
f. Pursuant to the Law, and Act, the City Council having published due
notice thereof, a public hearing was held on this Plan. Notice of the
hearing was duly published in a newspaper having general circulation.
The City Council adopted this Plan on ___________ __, 2015, by
Ordinance No. _____.
103 History and Current Conditions of the Area
This Project Area includes the U.S. Highway 20 and North 2nd East interchange, and is
generally bounded on the south by E. Moran View Road, and to the east by South Railroad
Avenue. The Project Area contains an estimated total of [679] acres. In general, the Project Area
is under-developed and requires infrastructure improvements to generate development. The area
lacks an internal street system connecting the real property to the existing roadways. The parcels
included in the Project Area are large and are not usable until developed. Little investment has
been made within the Project Area. Many of the streets within the Project Area generally reflect
rural standards of development and often lack curb, gutter, sidewalks, street lighting, safe
intersections or storm drainage facilities.
The Project Area is generally not served by a public water system; therefore,
development potential is restricted due to inadequate water capacity and fire flow issues.
Improvements are also needed to the sewer system. The interchange itself is insufficient to
handle traffic flow to serve development in the area requiring widening and signal
improvements.
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Approximately [302 acres] are located within Madison County outside of the city limits
of the City and Sugar City. With regard to the properties located outside the City limits and
within the boundaries of Madison County, and to meet the requirements of Idaho Code § 50-
2018(18), the Madison County Board of County Commissioners, by Resolution No. 375,
determined the area reviewed for eligibility to be a deteriorated or deteriorating area and adopted
the Agency’s findings made on June 17, 2014, in Resolution No. 2014-3. Additionally, the
Madison County Board of County Commissioners, by Resolution No. 392, determined the
additional area adjacent and contiguous to the original study area to be deteriorated or
deteriorating area and adopted the Agency’s supplemental findings made on June 4, 2015, in
Resolution No. 2015-2. The Madison County Board of County Commissioners further found
there is a need for an urban renewal plan for the area. The properties that remain outside of the
City limits and within the boundaries of Madison County will be governed by an
intergovernmental agreement between the City and Madison County. As required by Idaho Code
§ 50-2906(3)(b), an intergovernmental agreement will be entered into by, between, and among
Madison County and the City. In order to support development, this area will require
improvements to roadways and intersections, sidewalks and other pedestrian pathways, water
and sewer facilities and lines.
Approximately [78] acres are currently located within the city limits of the City of Sugar
City. With regard to the properties located within the boundaries of Sugar City, and to meet the
requirements of Idaho Code § 50-2018(18), the Sugar City City Council, by Resolution No.
2014-2, determined the area reviewed for eligibility to be a deteriorated or deteriorating area and
adopted the Agency’s findings made on June 17, 2014, In Resolution No. 2014-3. The Sugar
City City Council further found there is a need for an urban renewal plan for the area. The
properties that remain outside of the City limits and within the boundaries of Sugar City will be
governed by an intergovernmental agreement between the City and Sugar City. In order to
support development, this area will require improvements to roadways and intersections,
sidewalks and other pedestrian pathways, water and sewer facilities and lines.
The Plan will primarily include improvements to public infrastructure, creating the
framework for the development of commercial property and enhancement of public parks, open
spaces and/or other public recreation areas. Most of the Project Area is underdeveloped and is
not being used to its highest and best use due to deteriorating structures, the age and
obsolescence of infrastructure, the predominance of defective or inadequate street layout,
outmoded street patterns, need for modern traffic requirements, insanitary and unsafe conditions,
faulty lot layout and inadequate utility infrastructure needed for a larger development. The
foregoing conditions have arrested or impaired growth in the Project Area.
The preparation and approval of an urban renewal plan, including a revenue allocation
financing provision, gives the City additional resources to solve the public infrastructure
problems in this area. Revenue allocation financing should help to improve the situation. In
effect, property taxes generated by new developments within the Project Area may be used by
the Agency to finance a variety of needed public improvements and facilities. Finally, some of
the new developments may also generate new jobs in the community that would, in turn, benefit
the Project Area, City, Sugar City and Madison County residents.
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104 Purpose of Activities
The description of activities, public improvements, and the estimated costs of those items
are intended to create an outside limit of the Agency’s activity. The Agency reserves the right to
change amounts from one category to another, as long as the overall total amount estimated is
not substantially exceeded. The items and amounts are not intended to relate to any one
particular development, developer, or owner. Rather, the Agency intends to discuss and
negotiate with any owner or developer who seeks Agency assistance. During such negotiation,
the Agency will determine, on an individual basis, the eligibility of the activities sought for
Agency funding, the amount the Agency may fund by way of percentage or other criteria
including the need for such assistance. The Agency will also take into account the amount of
revenue allocation proceeds estimated to be generated from the developer’s activities. The
Agency also reserves the right to establish by way of policy, its funding percentage or
participation, which would apply to all developers and owners.
Throughout this Plan, there are references to Agency activities, Agency funding, and the
acquisition, development, and contribution of public improvements. Such references do not
necessarily constitute a full, final, and formal commitment by the Agency but, rather, grant to the
Agency the discretion to participate as stated subject to achieving the objectives of this Plan and
provided such activity is deemed eligible under the Law and the Act. In some respects the
activities listed in Attachment 5C are concepts which will be determined or prioritized as the
overall Project Area develops.
The Agency reserves the right to prioritize the projects described in this Plan. The
Agency also reserves the right to retain its flexibility in funding the various activities. The
Agency also reserves its discretion and flexibility in deciding which improvements should be
funded and what level, whether using its own funds or funds generated by other sources.
The activities listed in Attachment 5C are also prioritized by way of importance to the
Agency by the amounts funded, and by year of funding, with earlier years reflecting the more
important activities, achievement of higher objectives, long term goals, and commitments. As
required by the Law and Act, the Agency will adopt more specific budgets annually.
105 Open Land Criteria
Such open land areas may be acquired by the Agency and developed for nonresidential
uses if such acquisition is needed to solve various problems, associated with the land or the
public infrastructure, that have delayed its development. These problems include defective or
unusual conditions of title, diversity of ownership, tax delinquency, improper subdivisions,
outmoded street patterns, deterioration of site, and faulty lot layout, all of which are included in
one form or another in the Section 50-2903(8)(b) definition of deteriorated area. The problems
that are listed only in Section 50-2008(d)(4)(2) (the open land section) include economic disuse,
unsuitable topography, and “the need for the correlation of the area with other areas of a
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municipality by streets and modern traffic requirements, or any combination of such factors or
other conditions which delay development of the area.”
Such areas qualify if any of the standard 50-2018(8), (9) and 50-2903(8) characteristics
apply. But such areas also qualify if any of the problems listed only in 50-2008(d)(4)(2)
apply. Clearly, lack of water and sewer facilities, a deficient street system and lack of fire
protection facilities are all conditions which delay development of the open land areas.
200 DESCRIPTION OF PROJECT AREA
The boundaries of the Project Area and the Revenue Allocation Area are shown on the
Project Area and Revenue Allocation Boundary Map, attached hereto as Attachment 1 and
incorporated herein by reference, and are described in the Description of the Project Area and
Revenue Allocation Area, attached hereto as Attachment 2 and incorporated herein by
reference. For purposes of boundary descriptions and use of proceeds for payment of
improvements, the boundary shall be deemed to extend to the outer boundary of rights-of-way or
other natural boundary unless otherwise indicated or stated.
300 PROPOSED REDEVELOPMENT ACTIONS
301 General
The Agency proposes to eliminate and prevent the spread of deteriorating conditions and
deterioration in the Project Area by:
a. The acquisition of certain real property (if needed);
b. The demolition or removal of certain buildings and improvements for public
rights-of-way for streets, utilities, walkways, and other improvements, for public
facility building sites, to eliminate unhealthful, unsanitary, or unsafe conditions,
enhance density, eliminate obsolete or other uses detrimental to the public welfare
or otherwise to remove or to prevent the spread of deteriorating or deteriorated
conditions;
c. The provision for participation by property owners within the Project Area to
achieve the objectives of this Plan;
d. The management of any property acquired by and under the ownership and
control of the Agency;
e. The provision for relocation assistance to displaced Project Area occupants, as
required by law;
f. The installation, construction, or reconstruction of streets and intersections,
utilities, including electrical distribution and transmission lines in underground
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configuration, if needed to encourage new developments, fiber optic or other
communication systems, parking facilities, and other public improvements,
including, but not limited to, irrigation and drainage laterals and ditches, canal
crossings, storm drain systems, water and sewer improvements, fire protection
systems, streetlights, sidewalks, curbs, gutters, and other public improvements,
including public or other community facilities or buildings owned or occupied by
the Agency or other public agencies, including the City’s walkways, public open
spaces, city hall, courthouse, community centers, cultural centers and visitors or
information centers as may be deemed appropriate by the Board;
g. The disposition of property for uses in accordance with this Plan;
h. The redevelopment of land by private enterprise or public agencies for uses in
accordance with this Plan;
i. The rehabilitation of structures and improvements by present owners, their
successors, and the Agency;
j. The preparation and assembly of adequate sites for the development and
construction of facilities for industrial, commercial, residential, retail, and
governmental use;
k. To the extent allowed by law, lend or invest federal funds to facilitate
redevelopment; and
l. The construction of foundations, platforms, and other like structural forms
necessary for the provision or utilization of air rights, sites for buildings to be
used for residential, commercial, industrial, and other uses contemplated by the
Plan, and to provide utilities to the development site.
In the accomplishment of these purposes and activities and in the implementation and
furtherance of this Plan, the Agency is authorized to use all the powers provided in this Plan and
all the powers now or hereafter permitted by law.
302 Urban Renewal Plan Objectives
Urban renewal action is necessary in the Project Area to combat problems of physical
deterioration or deteriorating conditions.
The Project Area and revenue allocation area consist of approximately [679] acres of
property, including parcels currently located outside the City limits and within the boundaries of
Madison County and parcels located within the boundaries of the City of Sugar City. Those
properties that remain outside the City limits will be governed by a negotiated intergovernmental
agreements between the City and Madison County, and the City and Sugar City. The Project
Area boundaries are specifically identified on Attachment 1. As set forth in greater detail in
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Section 103, the Project Area has a history of a slow-growing tax base primarily attributed to
undeveloped or underdeveloped properties, deteriorated and vacant lots, faulty lot layout, lack of
adequate public infrastructure, potential environmental issues and other deteriorating factors.
Site preparation, remediation of any environmental issues, enhancement of open areas
and public recreation facilities, enhancement of infrastructure, including roadways, intersections
and interchanges, sidewalk, curb, gutter, improvements to water and sewer facilities, as well as,
remediating any drainage issues will enhance the overall development of the Project Area.
Hence, the Plan for the Project Area is primarily a proposal for street and utility
improvements to provide an improved environment for new retail, residential and commercial
facilities, public improvements or facilities, including but not limited to construction of public
facilities or buildings, the elimination of unsafe conditions, and to otherwise prevent the
extension of deterioration and reverse the deteriorating action of the area.
Air rights and subterranean rights may be disposed of for any permitted use within the
Project Area boundaries.
Less than fee acquisition may be utilized by the Agency when and if necessary to
promote redevelopment in accordance with the objectives of the Plan.
Temporary project improvements shall be provided to facilitate adequate vehicular and
pedestrian circulation.
The provisions of this Plan are applicable to all public and private property in the Project
Area. The provisions of the Plan shall be interpreted and applied as objectives and goals,
recognizing the need for flexibility in interpretation and implementation, while at the same time
not in any way abdicating the rights and privileges of the property owners which are v ested in
the present and future zoning classifications of the properties. All development under an owner
participation agreement shall conform to those standards specified in Section 303.1 of this Plan.
This Plan must be practical in order to succeed. Particular attention has been paid to how
it can be implemented, given the changing nature of market conditions. Transforming the
Project Area into a vital, thriving part of the community requires an assertive strategy. The
following list represents the key elements of that effort:
a. Initiate simultaneous projects designed to revitalize the Project Area. From street
and utility improvements to significant new development, the Agency plays a key
role in creating the necessary momentum to get and keep things going.
b. Develop new commercial opportunities and encourage economic development.
c. Pursue development across all land-use sectors.
d. Develop parking facilities.
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e. Install, construct, or reconstruct public facilities or buildings, including but not
limited to fire stations and/or police stations.
Without direct public intervention, much of the Project Area could conceivably remain
unchanged for the next several years. It is anticipated success will come through at least one
public-private partnership. The Plan creates the necessary flexible framework for the Project
Area to support the City’s economic development.
Land use in the Project Area will be modified to the extent that buildings currently vacant
and land now devoted to scattered inconsistent uses will be converted to professional offices,
residential housing, commercial, public and private parking, and/or public/semi-public uses. In
implementing the activities described in this Plan, the Agency shall give due consideration to the
provision of adequate park and recreational areas and facilities that may be desirable for
neighborhood improvement, with special consideration for the health, safety and welfare of
residents in the general vicinity of the site covered by the Plan.
303 Participation Opportunities and Agreement
303.1 Participation Agreements
The Agency shall enter into an owner participation agreement with any existing or future
owner of property, in the event the property owner seeks and/or receives assistance from the
Agency in the redevelopment of the property. In that event, the Agency may allow for an
existing or future owner of property to remove his property and/or structure from future Agency
acquisition subject to entering into an owner participation agreement.
Each structure and building in the Project Area to be rehabilitated or to be constructed as
a condition of the owner participation agreement between the Agency and the owner pursuant to
this Plan will be considered to be satisfactorily rehabilitated and constructed, and the Agency
will so certify, if the rehabilitated or new structure meets the following standards through an
executed owner participation agreement to meet conditions described below.
a. Any such property within the Project Area shall be required to conform to all
applicable provisions, requirements, and regulations of this Plan. The owner
participation agreement may require as a condition of financial participation by
the Agency a commitment by the property owner to meet the greater objectives of
the land use elements identified in the Comprehensive Plan, and applicable zoning
ordinances. Upon completion of any rehabilitation each structure must be safe
and sound in all physical respects and be refurbished and altered to bring the
property to an upgraded marketable condition that will continue throughout an
estimated useful life for a minimum of twenty (20) years.
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b. All such buildings or portions of buildings which are to remain within the Project
Area shall be rehabilitated in conformity with all applicable codes and ordinances
of the City.
c. Any new construction shall also conform to all applicable provisions,
requirements, and regulations of this Plan.
d. Any new construction shall also conform to all applicable codes and ordinances of
the City.
e. Participant shall be charged a fee of one percent (1%) to pay overhead expenses
calculated on the private development investment identified in any approved
reimbursement agreement or disposition and development agreement or on any
public infrastructure project funded by the Agency, setting aside one percent (1%)
of the infrastructure project costs for overhead expenses.
f. That the Agency receives actual notice within two (2) business days of filing of
any tax appeals and applications for property tax exemption, and that the
developer will not challenge the Agency’s standing to participate in the
proceedings as a party.
All such agreements will address phasing issues, justification and eligibility of project costs,
and achievement of the objectives of the Plan. Agency shall retain its discretion in the
funding level of its participation, considering among other factors, other economic
development benefits obtained or to be pursued by the property owner, including property
tax exemption.
In such participation agreements, participants who retain real property shall be required
to join in the recordation of such documents as may be necessary to make the provisions of this
Plan applicable to their properties. Whether or not a participant enters into a participation
agreement with the Agency, the provisions of this Plan are applicable to all public and private
property in the Project Area.
In the event a participant fails or refuses to rehabilitate, develop, use, and maintain its real
property pursuant to this Plan and a participation agreement, the real property or any interest
therein may be acquired by the Agency in accordance with Section 305.1 of this Plan and sold or
leased for rehabilitation or development in accordance with this Plan.
Owner participation agreements may be used to implement the following objectives:
a. Encouraging established businesses to revitalize deteriorating areas of their
parcels to accelerate the enhancement of the street environment in the Plan area.
b. Subject to the limitations of the Law and the Act, providing incentives to existing
business owners to encourage continued utilization and expansion of existing
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permitted uses to prevent properties from falling into disuse, a proliferation of
vacant and deteriorated parcels and a reduction in area employment.
c. Allowing existing nonconforming uses to continue in accordance with local
regulations and to accommodate improvements and expansions allowed by local
regulations.
d. Subject to the limitations of the Act, providing incentives to improve
nonconforming properties so they implement the design guidelines contained in
this Plan to the extent possible and to encourage an orderly transition from
nonconforming to conforming uses over the next twenty (20) years.
303.2 [Reserved]
304 Cooperation with Public Bodies
Certain public bodies are authorized by state law to aid and cooperate, with or without
consideration, in the planning, undertaking, construction, or operation of this Project. The
Agency shall seek the aid and cooperation of such public bodies and shall attempt to coordinate
this Plan with the activities of such public bodies in order to accomplish the purposes of
redevelopment and the highest public good.
The Agency, by law, is not authorized to acquire real property owned by public bodies
without the consent of such public bodies. The Agency will seek the cooperation of all public
bodies which own or intend to acquire property in the Project Area. All plans for development
of property in the Project Area by a public body shall be subject to Agency approval, in the event
the Agency is providing any financial assistance.
Subject to applicable authority, the Agency may impose on all public bodies the planning
and design controls contained in this Plan to insure that present uses and any future development
by public bodies will conform to the requirements of this Plan. The Agency is authorized to
financially (and otherwise) assist any public entity in the cost of public land, buildings, facilities,
structures, or other improvements of the Project Area.
The Agency specifically intends to cooperate to the extent allowable with the City, Sugar
City and the County (as the case may be) for the construction of street and utility improvements.
The Agency shall also cooperate with the City, Sugar City and County on various relocation,
screening, or underground projects, the providing of fiber optic capability, and the funding of
water and sewer improvements. To the extent any public entity, including the City, Sugar City
and the County, has funded certain improvements such as water and sewer facilities, the Agency
may reimburse those entities for those expenses. The Agency shall also cooperate with any
public entity having jurisdiction over rights-of-way for the improvement of roads within the
Project Area and with the public bodies responsible for water and sewer improvements. The
Agency also intends to cooperate and seek available assistance from state and federal sources for
economic development.
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In the event the Agency is participating in the public development by way of financial
incentive or otherwise, the public body shall enter into a participation agreement with the
Agency and then shall be bound by the Plan and other land use elements and shall conform to
those standards specified in Section 303.1 of this Plan.
305 Property Acquisition
305.1 Real Property
Generally, the Agency intends to acquire any real property or interests in real property
through voluntary measures; however, the Agency is not required to acquire any real property
located in the Project Area. Any acquisition shall be by any means authorized by law, including,
but not limited to, the Law, the Act, the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, and the Idaho Eminent Domain laws set forth in Title 7,
Chapter 7, Idaho Code. The Agency is authorized to acquire either the entire fee or any other
interest in real property less than a fee, including structures and fixtures upon the real property
without acquiring the land upon which those structures and fixtures are located.
The Agency may, in consideration of the obligations of the developer or owner in any
development agreement, waive its rights to acquire the real property covered by the development
agreement, if the developer or owner fully performed under the development agreement.
Idaho Code Section 7-701A specifically limits the Agency’s ability to exercise eminent
domain to involuntarily acquire real property in the Project Area for purposes of conveying
property for non-public uses:
7-701A. Limitation on eminent domain for private parties, urban renewal or
economic development purposes. (1) This section limits and restricts the use of
eminent domain under the laws of this state or local ordinance by the state of
Idaho, its instrumentalities, political subdivisions, public agencies, or bodies
corporate and politic of the state to condemn any interest in property in order to
convey the condemned interest to a private interest or person as provided herein.
(2) Eminent domain shall not be used to acquire private property:
(a) For any alleged public use which is merely a pretext for the transfer of
the condemned property or any interest in that property to a private party;
or
(b) For the purpose of promoting or effectuating economic development;
provided however, that nothing herein shall affect the exercise of eminent
domain:
(i) Pursuant to chapter 15, title 70, Idaho Code, and title 42, Idaho
Code; or
20
(ii) Pursuant to chapters 19, 20 or 29, title 50, Idaho Code, except that
no private property shall be taken through exercise of eminent domain
within the area of operation of a housing authority or within an urban
renewal area or within a deteriorated or deteriorating area or within a
competitively disadvantaged border community area unless the
specific property to be condemned is proven by clear and convincing
evidence to be in such condition that it meets all of the requirements:
1. The property, due to general dilapidation, compromised
structural integrity, or failed mechanical systems, endangers life or
endangers property by fire or by other perils that pose an actual
identifiable threat to building occupants; and
2. The property contains specifically identifiable conditions that
pose an actual risk to human health, transmission of disease,
juvenile delinquency or criminal content; and
3. The property presents an actual risk of harm to the public health,
safety, morals or general welfare; or
(iii) For those public and private uses for which eminent domain is
expressly provided in the constitution of the state of Idaho; or
(c) For trails, paths, greenways or other ways for walking, running,
hiking, bicycling or equestrian use, unless adjacent to a highway, road or
street.
(3) This section shall not affect the authority of a governmental entity to condemn
a leasehold estate on property owned by the governmental entity.
(4) The rationale for condemnation by the governmental entity proposing to
condemn property shall be freely reviewable in the course of judicial proceedings
involving exercise of the power of eminent domain.
It is in the public interest and is necessary, in order to eliminate the conditions requiring
redevelopment and in order to execute this Plan, for the power of eminent domain to be retained
by the Agency to acquire real property in the Project Area, which cannot be acquired by gift,
devise, exchange, purchase, or any other lawful method, for a public purpose or for private
redevelopment within the limits described above. However, the Agency’s authority to invoke
eminent domain to acquire real property for disposition to private parties for economic
development is limited by Idaho Code § 7-701A.
Under the provisions of the Act, the urban renewal plan “shall be sufficiently complete to
indicate such land acquisition, demolition, and removal of structures, redevelopment,
improvements, and rehabilitation as may be proposed to be carried out in the urban renewal
area.” Idaho Code § 50-2018(12). At the present time the Agency has not identified any
particular parcel for acquisition for the construction of public improvements or for private
21
redevelopment. These activities are generally described in Attachment 3. Properties which
may be subject to acquisition are those parcels which may be vacant or abandoned, parcels which
are currently limited in use such as surface parking lots, small parcels that could be assembled
for redevelopment and those which are significantly deteriorated, parcels which may be adjacent
to right-of-way to improve configuration and enlarge parcels for redevelopment, adapt and
possibly enlarge an existing building for a new use, reconfigure sites for development and
possible extension street or pathway. Other parcels may be acquired for the purpose of
facilitating catalyst or demonstration projects, constructing public parking, constructing new
streets or pathways, enhancing public spaces, or to implement other elements of the Plan
strategy.
Generally, the Agency reserves the right to determine which properties, if any, should be
acquired. The Agency intends to acquire any real property through voluntary or consensual gift,
devise, exchange, or purchase. Such acquisition of property may be for the development of any
public improvements identified in this Plan, for the assembly of properties for the purpose of
redevelopment of those properties to achieve the objectives of this Plan, and/or for purposes of
redevelopment and reuse as identified in the Plan. Such properties may include properties
owned by private parties or public entities. The Agency shall coordinate any voluntary property
acquisition with any other public entity, as may be necessary.
305.2 Personal Property
Generally, personal property shall not be acquired. However, where necessary in the
execution of this Plan, the Agency is authorized to acquire personal property in the Project Area
by any lawful means, including eminent domain. For purposes of this Plan, acquisition of certain
permanent fixtures or improvements upon real property shall be governed by this section. The
Agency retains the right to purchase those fixtures or improvements (including buildings) for the
purpose of eliminating certain deteriorated or deteriorated structures to facilitate the
redevelopment of the real property upon which the buildings and structures are located. Such
acquisition shall be based upon appraised value of the structures and negotiation with the owner
of the structures. The Agency shall take into account, before committing to such acquisition, any
environmental or other liability present or potentially present in such structures. In the event, the
Agency determines to acquire such property; it shall do so upon the successful negotiation of an
owner participation agreement in compliance with the terms of Section 303.1 of this Plan. In
addition, such owner shall commit to the redevelopment of the real property and to maintain the
real property in a safe and clean manner. The Agency shall acquire such property by way of any
acceptable conveyance.
306 Property Management
During the time property, if any, in the Project Area is owned by the Agency, such
property shall be under the management and control of the Agency. Such property may be
rented or leased by the Agency pending its disposition for redevelopment, and such rental or
lease shall be pursuant to such policies as the Agency may adopt.
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307 Relocation of Persons (Including Individuals and Families), Business
Concerns, and Others Displaced by the Project
If the Agency receives federal funds for real estate acquisition and relocation, the Agency
shall comply with 24 C.F.R. Part 42, implementing the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970, as amended. The Agency may also undertake
relocation activities for those not entitled to benefit under federal law, as the Agency may deem
appropriate for which funds are available. The Agency’s activities should not result in the
displacement of families within the area. In the event the Agency’s activities result in
displacement, the Agency shall compensate such residents by providing reasonable moving
expenses into decent, safe, and sanitary dwelling accommodations within their means and
without undue hardship to such families. The Agency will not participate in any private
redevelopment activity which will result in displacement of families unless a method exists for
the relocation of displaced families in decent, safe, and sanitary dwelling accommodations within
their means and without undue hardship to such families. For any other activity, the Agency will
comply with the provisions of the Law regarding relocation.
The Agency reserves the right to extend benefits for relocation to those not otherwise
entitled to relocation benefits as a matter of state law under the Act or the Law. The Agency
may determine to use as a reference the relocation benefits and guidelines promulgated by the
federal government, the state government, or local government, including the State Department
of Transportation. The intent of this section is to allow the Agency sufficient flexibility to award
relocation benefits on some rational basis, or by payment of some lump sum per case basis. The
Agency may also consider the analysis of replacement value for the compensation awarded to
either owner occupants or businesses displaced by the Agency to achieve the objectives of this
Plan. The Agency may adopt relocation guidelines which would define the extent of relocation
assistance in non-federally-assisted projects and which relocation assistance to the greatest extent
feasible would be uniform. The Agency shall also coordinate with the various local, state, or
federal agencies concerning relocation assistance.
For displacement of families, the Agency shall comply with, at a minimum, the standards
set forth in the Law. The Agency shall also comply with all applicable state laws concerning
relocation benefits. If such a program is considered, it shall be adopted by resolution of the
Agency Board.
308 Demolition, Clearance, and Building and Site Preparation
308.1 Demolition and Clearance
The Agency is authorized (but not required) to demolish and clear buildings, structures,
and other improvements from any real property in the Project Area as necessary to carry out the
purposes of this Plan.
308.2 Preparation of Building Sites
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The Agency is authorized (but not required) to prepare, or cause to be prepared, as
building sites any real property in the Project Area owned by the Agency, including rock
removal and site preparation. In connection therewith, the Agency may cause, provide for, or
undertake the installation or construction of streets, utilities, storm drainage facilities, and other
public improvements necessary to carry out this Plan. The Agency is also authorized (but not
required) to construct foundations, platforms, and other structural forms necessary for the
provision or utilization of air rights sites for buildings to be used for industrial, commercial,
private, public, and other uses provided in this Plan. To the extent allowed by the Law and Act,
the Agency may assist in the preparation of building sites by way of reclamation, remediation, or
elimination of deteriorated conditions. The Agency is also authorized (but not required) to
purchase certain site or building improvements for purpose of site preparation and development.
309 Property Disposition and Development
309.1 Real Property Disposition and Development
309.1.1 General
For the purposes of this Plan, the Agency is authorized to sell, lease, exchange,
subdivide, transfer, assign, pledge, encumber by mortgage or deed of trust, or otherwise dispose
of any interest in real property under the reuse provisions set forth in Idaho Code Section 50-
2011. To the extent permitted by law, the Agency is authorized to dispose of real property by
negotiated lease, sale, or transfer without public bidding.
Real property acquired by the Agency may be conveyed by the Agency and, where
beneficial to the Project Area, without charge to any public body as allowed by law. All real
property acquired by the Agency in the Project Area shall be sold or leased to public or private
persons or entities for development for the uses permitted in this Plan.
All purchasers or lessees of property acquired from the Agency shall be obligated to use
the property for the purposes designated in this Plan, to begin and complete development of the
property within a period of time which the Agency fixes as reasonable, and to comply with other
conditions which the Agency deems necessary to carry out the purposes of this Plan.
The Agency shall give due consideration to the provision of adequate park and
recreational areas and facilities that may be desirable for neighborhood improvement, with
special consideration for the health, safety and welfare of residents residing in the general
vicinity of the site covered by the Plan.
309.1.2 Disposition and Development Documents
24
To provide adequate safeguards to ensure that the provisions of this Plan will be carried
out and to prevent the recurrence of deteriorating conditions, all real property sold, leased, or
conveyed by the Agency, as well as all property subject to participation agreements, is subject to
the provisions of this Plan.
The Agency shall reserve such powers and controls in the disposition and development
documents as may be necessary to prevent transfer, retention, or use of property for speculative
purposes and to ensure that development is carried out pursuant to this Plan.
Leases, deeds, contracts, agreements, and declarations of restrictions of the Agency may
contain restrictions, covenants, covenants running with the land, rights of reverter, conditions
subsequent, equitable servitudes, or any other provisions necessary to carry out this Plan. Where
appropriate, as determined by the Agency, such documents, or portions thereof, shall be recorded
in the office of the Recorder of Madison County.
All property in the Project Area is hereby subject to the restriction that there shall be no
discrimination or segregation based upon race, color, creed, religion, sex, age, national origin, or
ancestry in the sale, lease, sublease, transfer, use, occupancy, disability/handicap, tenure, or
enjoyment of property in the Project Area. All property sold, leased, conveyed, or subject to a
participation agreement shall be expressly subject by appropriate documents to the restriction
that all deeds, leases, or contracts for the sale, lease, sublease, or other transfer of land in the
Project Area shall contain such nondiscrimination and non-segregation clauses as required by
law.
The land and/or air rights and subterranean rights acquired by the Agency will be
disposed of subject to an agreement between the Agency and the developers. The developers
(including owner/participants) will be required by the contractual agreement to observe the Land
Use and Building Requirements provision of this Plan and to submit a redevelopment schedule
satisfactory to the Agency. Schedule revisions will be made only at the option of the Agency.
As required by law or as determined in the Agency’s discretion to be in the best interest
of the Agency and the public, the following requirements and obligations shall be included in the
agreement.
That the developers, their successors, and assigns agree:
a. That a plan and time schedule for the proposed development shall be submitted to
the Agency.
b. That the purchase or lease of the land and/or subterranean rights and/or air rights
is for the purpose of redevelopment and not for speculation.
c. That the building of improvements will be commenced and completed as jointly
scheduled and determined by the Agency and the developer(s).
25
d. That there will be no discrimination or segregation based upon race, color, creed,
religion, sex, age, national origin, or ancestry in the sale, lease, sublease, transfer,
use, occupancy, disability/handicap, tenure, or enjoyment of the premises or any
improvements erected or to be erected thereon, therein conveyed; nor will the
developer himself or any person claiming under or through him establish or
permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use, or occupancy of tenants, lessees,
sublessees, or vendees in the premises or any improvements erected, or to be
erected thereon, therein conveyed. The above provision will be perpetual and will
be appended to the land disposed of within the Project Area by the Agency.
e. That the site and construction plans will be submitted to the Agency for review as
to conformity with the provisions and purposes of this Plan.
f. All new construction shall have a minimum estimated life of no less than twenty
(20) years.
g. That rehabilitation of any existing structure must assure that the structure is safe
and sound in all physical respects and be refurbished and altered to bring the
property to an upgraded marketable condition which will continue throughout an
estimated useful life for a minimum of twenty (20) years.
h. That the Agency receives adequate assurance acceptable to the Agency to ensure
performance under the contract for sale.
i. All such buildings or portions of the buildings which are to remain within the
Project Area shall be reconstructed in conformity with all applicable codes and
ordinances of the City.
j. That the Agency receives actual notice within two (2) business days of filing of
any tax appeals and applications for property tax exemption, and that the
developer will not challenge the Agency’s standing to participate in the
proceedings as a party.
k. All disposition and development documents shall be governed by the provisions
of Section 408 and 412 of this Plan.
l. The developer shall be charged a fee of one percent (1%) to pay overhead
expenses calculated on the private development investment identified in any
approved reimbursement agreement or disposition and development agreement or
on any public infrastructure project funded by the Agency, setting aside one
percent (1%) of the infrastructure project costs for overhead expenses.
26
The Agency also reserves the right to determine the extent of its participation based upon the
achievements of the objectives of this Plan
309.1.3 Development by the Agency
To the extent now or hereafter permitted by law, the Agency is authorized to pay for,
develop, or construct any publicly-owned building, facility, structure, or other improvement
within the Project Area for itself or for any public body or entity, which buildings, facilities,
structures, or other improvements are or would be of benefit to the Project Area. Specifically,
the Agency may pay for, install, or construct the buildings, facilities, structures, and other
improvements identified in Attachment 5C, attached hereto and incorporated herein by
reference, and may acquire or pay for the land required therefore.
The Agency may also prepare properties for development by renovation or other means
as allowed by law. The Agency may also, as allowed by law, assist in the development of
private projects.
In addition to the public improvements authorized under Idaho Code Section 50-2007,
50-2018, and 50-2903(9), (13), and (14), the Agency is authorized to install and construct, or to
cause to be installed and constructed, within the Project Area for itself or for any public body or
entity, public improvements and public facilities, including, but not limited to, the following:
(1) utilities; (2) telecommunications (including fiber-optic) facilities; (3) parks, plazas, open
space, recreational facilities and pedestrian paths; (4) landscaped areas; (5) street improvements;
(6) improvements to intersections; (7) sidewalk, curb and gutter improvements; (8)
improvements to lighting; (9) sanitary sewers and lift stations; (10) flood control facilities and
storm drains; (11) water mains and pumps; (12) canal crossings; (13) fire prevention; (14)
community facilities; (15) remediation of environmental conditions; and (16) other public
infrastructure or improvements, including but not limited to construction of public buildings and
facilities.
Any public facility ultimately owned by the Agency shall be operated and managed in
such a manner to preserve the public purpose nature of the facility. Any lease agreement with a
private entity or management contract agreement shall include all necessary provisions sufficient
to protect the public interest and public purpose.
The Agency may enter into contracts, leases, and agreements with the City, Sugar City,
Madison County or other public body or private entity pursuant to this section, and the obligation
of the Agency under such contract, lease, or agreement shall constitute an indebtedness of the
Agency as described in Idaho Code Section 50-2909 which may be made payable out of the
taxes levied in the Project Area and allocated to the Agency under subdivision (2)(b) of
Section 50-2908 of the Act and Section 504 to this Plan or out of any other available funds.
27
309.1.4 Development Plans
All development plans (whether public or private) prepared, pursuant to disposition and
development or owner participation agreements, shall be submitted to the Agency for approval
and architectural review. All development in the Project Area must conform to those standards
specified in Sections 408 and 412, infra.
310 Personal Property Disposition
For the purposes of this Plan, the Agency is authorized to lease, sell, exchange, transfer,
assign, pledge, encumber, or otherwise dispose of personal property which is acquired by the
Agency.
311 Rehabilitation and Conservation
The Agency is authorized to rehabilitate, renovate, and conserve, or to cause to be
rehabilitated, renovated, and conserved, any building or structure in the Project Area owned by
the Agency for preparation of redevelopment and disposition. The Agency is also authorized
and directed to advise, encourage, and assist in the rehabilitation and conservation of property in
the Project Area not owned by the Agency.
As necessary in carrying out this Plan, the Agency is authorized to move, or to cause to
be moved, any substandard structure or building or any structure or building which can be
rehabilitated to a location within or outside the Project Area.
312 Participation with Private Development or Public Development
Under the Law, the Agency has the authority to lend or invest funds obtained from the
federal government for the purposes of the Law if allowable under federal laws or regulations.
The federal funds that may be available to the Agency are governed by regulations promulgated
by the Department of Housing and Urban Development for the Idaho Community Development
Block Grant Program (“ICDBG”), the Economic Development Administration, the Small
Business Administration, or other federal agencies. In order to enhance such grants, the
Agency’s use of revenue allocation funds is critical.
Under those regulations the Agency may participate with the private sector in the
development and financing of those private projects that will attain certain federal objectives.
The Agency may, therefore, use the federal funds for the provision of assistance to
private for-profit business, including, but not limited to, grants, loans, loan guarantees, interest
supplements, technical assistance, and other forms to support, for any other activity necessary or
appropriate to carry out an economic development project.
As allowed by law, the Agency may also use funds from any other sources for any
purpose set forth under the Law or Act.
28
The Agency may enter into contracts, leases, and agreements with the City, Sugar City,
Madison County or other public body or private entity, pursuant to this section, and the
obligation of the Agency under such contract, lease, or agreement shall constitute an
indebtedness of the Agency as described in Idaho Code Section 50-2909 which may be made
payable out of the taxes levied in the Project Area and allocated to the Agency under subdivision
2(b) of Section 50-2908 of the Local Economic Development Act and Section 504 to this Plan or
out of any other available funds.
313 Conforming Owners
The Agency may, at the Agency’s sole and absolute discretion, determine that certain real
property within the Project Area presently meets the requirements of this Plan, and the owner of
such property will be permitted to remain as a conforming owner without a participation
agreement with the Agency, provided such owner continues to operate, use, and maintain the real
property within the requirements of this Plan.
314 [Reserved]
400 USES PERMITTED IN THE PROJECT AREA
401 Redevelopment Plan Map and Development Strategy
The Urban Renewal Project Area Map, the Revenue Allocation Map, and the Description
of the Urban Renewal Project Area Boundaries, are attached hereto as Attachments 1 and 2,
and are incorporated by reference. The proposed land uses and permitted land uses in the Project
Area for all land, public and private, are described in Attachment 4.
402 Designated Land Uses
The Agency intends to rely upon the overall land use designations and zoning
classifications of the local entity, as depicted on Attachment 4 and as set forth in the applicable
comprehensive plan, including the future land use map and zoning classifications. For the most
part, the Project Area is proposed as commercial development. Provided, however, nothing
herein within this Plan shall be deemed to be granting any particular right to zoning classification
or use.
403 [Reserved]
29
404 Public Rights-of-Way
The major public streets within the Project Area are portions of U.S. Highway 20, North
2nd East, South Railroad Avenue (North Yellowstone Highway), Moody Road, Moran View
Road, and any others not listed, including new streets to facilitate traffic as necessary, but within
the boundaries of the Project Area as more specifically set forth in Attachment 1.
Additional improvements to existing streets, newly created streets, and easements may be
created, improved, or extended in the Project Area as needed for development. Existing streets,
easements, and irrigation or drainage laterals or ditches may be abandoned, closed, or modified
as necessary for proper development of the Project Area, in conjunction with any applicable
policies and standards of the local entity regarding changes to dedicated rights-of-way, and
appropriate irrigation or drainage districts regarding changes to laterals or ditches.
Any changes in the existing interior or exterior street layout shall be in accordance with
the objectives of this Plan and the applicable local design standards; shall be effectuated in the
manner prescribed by State and local law; and shall be guided by the following criteria:
a. A balancing of the needs of proposed and potential new developments for
adequate vehicular access, vehicular parking, and delivery loading docks with the
similar needs of any existing developments permitted to remain. Such balancing
shall take into consideration the rights of existing owners and tenants under the
rules for owner and tenant participation adopted by the Agency for the Project
Area and any participation agreements executed thereunder;
b. The requirements imposed by such factors as topography, traffic safety, and
aesthetics; and
c. The potential need to serve not only the Project Area and new or existing
developments, but to also serve areas outside the Project Area by providing
convenient and efficient vehicular access and movement.
The public rights-of-way may be used for vehicular and/or pedestrian traffic, as well as
for public improvements, public and private utilities, and activities typically found in public
rights-of-way.
405 Other Public, Semi-Public, Institutional, and Nonprofit Uses
The Agency is also authorized to permit the maintenance, establishment, or enlargement
of public, semi-public, institutional, or nonprofit uses, including park and recreational facilities;
educational, fraternal, employee; philanthropic and charitable institutions; utilities; governmental
facilities; equipment; and facilities of other similar associations or organizations. All such uses
shall, to the extent possible, conform to the provisions of this Plan applicable to the uses in the
specific area involved. The Agency may impose such other reasonable requirements and/or
restrictions as may be necessary to protect the development and use of the Project Area.
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406 Interim Uses
Pending the ultimate development of land by developers and participants, the Agency is
authorized to use or permit the use of any land in the Project Area for interim uses that are not in
conformity with the uses permitted in this Plan. However, any interim use must comply with
applicable city code.
407 General Controls and Limitations
All real property in the Project Area, under the provisions of either a disposition and
development agreement or owner participation agreement, is made subject to the controls and
requirements of this Plan. No such real property shall be developed, rehabilitated, or otherwise
changed after the date of the adoption of this Plan, except in conformance with the provisions of
this Plan.
407.1 Construction
All construction in the Project Area shall comply with all applicable state and local laws
and codes in effect from time to time. In addition to applicable codes, ordinances, or other
requirements governing development in the Project Area, additional specific performance and
development standards may be adopted by the Agency to control and direct redevelopment
activities in the Project Area in the event of a disposition and development agreement or owner
participation agreement.
407.2 Rehabilitation and Retention of Properties
Any existing structure within the Project Area, subject to either a disposition and
development agreement or owner participation agreement, approved by the Agency for retention
and rehabilitation, shall be repaired, altered, reconstructed, or rehabilitated in such a manner that
it will be safe and sound in all physical respects and be attractive in appearance and not
detrimental to the surrounding uses.
407.3 Limitation on Type, Size, and Height of Buildings
Except as set forth in other sections of this Plan, the type, size, and height of buildings
shall be as limited by applicable federal, state, and local statutes, ordinances, and regulations.
407.4 Open Spaces, Landscaping, Light, Air, and Privacy
The issues of open space, landscaping, light, air, and privacy shall be governed by
applicable federal, state, and local laws and ordinances.
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407.5 Signs
All signs shall conform to local sign ordinances as they now exist or are hereafter
amended.
407.6 Utilities
The Agency shall require that all utilities be placed underground whenever physically and
economically feasible.
407.7 Incompatible Uses
No use or structure which by reason of appearance, traffic, smoke, glare, noise, odor, or
similar factors which would be incompatible with the surrounding areas or structures shall be
permitted in any part of the Project Area.
407.8 Nondiscrimination and Nonsegregation
There shall be no discrimination or segregation based upon race, color, creed, religion,
sex, age, marital status, disability/handicap, national origin, or ancestry permitted in the sale,
lease sublease, transfer, use, occupancy, tenure, or enjoyment of property in the Project Area.
407.9 Subdivision of Parcels
Any parcel in the Project Area shall be subdivided only in compliance with the applicable
local subdivision ordinance.
407.10 Minor Variations
Under exceptional circumstances, the Agency is authorized to permit a variation from the
limits, restrictions, and controls established by this Plan. In order to permit such variation, the
Agency must determine that:
a. The application of certain provisions of this Plan would result in practical
difficulties or unnecessary hardships inconsistent with the general purpose and
intent of this Plan;
b. There are exceptional circumstances or conditions applicable to the property or to
the intended development of the property which do not apply generally to other
properties having the same standards, restrictions, and controls;
c. Permitting a variation will not be materially detrimental to the public welfare or
injurious to property or improvements in the area; and
d. Permitting a variation will not be contrary to the objectives of this Plan.
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No variation shall be granted which changes a basic land use or which permits other than
a minor departure from the provisions of this Plan. In permitting any such variation, the Agency
shall impose such conditions as are necessary to protect the public peace, health, safety, or
welfare and to assure compliance with the purposes of the Plan. Any variation permitted by the
Agency hereunder shall not supersede any other approval required under applicable local codes
and ordinances.
408 Design for Development
Within the limits, restrictions, and controls established in this Plan, the Agency is
authorized to establish heights of buildings, land coverage, setback requirements, design criteria,
traffic circulation, traffic access, and other development and design controls necessary for proper
development of both private and public areas within the Project Area. Any development must
also comply with the applicable local zoning ordinance regarding heights, setbacks, and other
like standards.
In the case of property which is the subject of a disposition and development or
participation agreement with the Agency, no new improvement shall be constructed, and no
existing improvement shall be substantially modified, altered, repaired, or rehabilitated, except in
accordance with this Plan. Under those agreements the architectural, landscape, and site plans
shall be submitted to the Agency and approved in writing by the Agency. One of the objectives
of this Plan is to create an attractive and pleasant environment in the Project Area. Therefore,
such plans shall give consideration to good design, open space, and other amenities to enhance
the aesthetic quality of the Project Area. The Agency shall not approve any plans that do not
comply with this Plan. The Agency reserves the right to impose such design standards on an ad
hoc, case by case basis through the approval process of the owner participation agreement or
disposition and development agreement. Any change to such approved design must be
consented to by the Agency and such consent may be conditioned upon reduction of Agency’s
financial participation towards the Project.
In the event the Agency adopts design standards or controls, those provisions will
thereafter apply to each site or portion thereof in the Project Area. Those controls and standards
will be implemented through the provisions of any disposition and development agreement or
owner participation agreement or by appropriate covenants appended to the land and instruments
of conveyance executed pursuant thereto. These controls are in addition to any standards and
provisions of any applicable local building or zoning ordinances; provided, however, each and
every development shall comply with all applicable local zoning and building ordinance.
409 Off-Street Loading
Any development and improvements shall provide for off-street loading as required by
the applicable local ordinances as they now exist or are hereafter amended.
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410 Off-Street Parking
All new construction in the area shall provide off-street parking as required by the
applicable local ordinances as they now exist or are hereafter amended. The off-street parking
requirement may be met by a public parking facility, including a parking garage and/or parking
lot within proximity to the new construction.
411 Nonconforming Uses
The Agency may permit an existing use to remain in an existing building and site usage
in good condition, which use does not conform to the provisions of this Plan, provided that such
use is generally compatible with existing and proposed developments and uses in the Project
Area. The owner of such a property must be willing to enter into a participation agreement and
agree to the imposition of such reasonable restrictions as may be necessary to protect the
development and use of the Project Area.
The Agency may authorize additions, alterations, repairs, or other improvements in the
Project Area for uses which do not conform to the provisions of this Plan where such
improvements are within a portion of the Project Area where, in the determination of the
Agency, such improvements would be compatible with surrounding Project Area uses and
development.
All nonconforming uses shall also comply with the applicable local ordinances.
412 Design Guidelines for Development under a Disposition and Development
Agreement or Owner Participation Agreement
Under an owner participation agreement or a disposition and development agreement the
design guidelines and land use elements of the Plan shall be achieved to the greatest extent
feasible, though the Agency retains the authority to grant minor variations under Section 407.10
of this Plan and subject to a negotiated agreement between the Agency and the developer or
property owner.
Under those agreements, the architectural, landscape, and site plans shall be submitted to
the Agency and approved in writing by the Agency. In such agreements, the Agency may
impose additional design controls. One of the objectives of this Plan is to create an attractive
pedestrian environment in the Project Area. Therefore, such plans shall give consideration to
good design and amenities to enhance the aesthetic quality of the Project Area. These additional
design standards or controls will be implemented through the provisions of any disposition and
development agreement or owner participation agreement or by appropriate covenants appended
to the land and instruments of conveyance executed pursuant thereto. These controls are in
addition to any standard and provisions of any applicable local building or zoning ordinances;
provided, however, each and every development shall comply with all applicable local zoning
and building ordinances.
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500 METHODS OF FINANCING THE PROJECT
501 General Description of the Proposed Financing Method
The Agency is authorized to finance this Project with financial assistance from the City,
state of Idaho, federal government, interest income, Agency bonds, donations, loans from private
financial institutions, the lease or sale of Agency-owned property, or any other available source,
public or private, including assistance from any taxing district or any public entity.
The Agency is also authorized to obtain advances, borrow funds, and create indebtedness
in carrying out this Plan. The Agency may also consider an inter-fund transfer from other urban
renewal project areas. The principal and interest on such advances, funds, and indebtedness may
be paid from any funds available to the Agency. The City, as it is able, may also supply
additional assistance through City loans and grants for various public facilities.
The City, Sugar City, County or any other public agency may expend money to assist the
Agency in carrying out this Project.
502 Revenue Bond Funds
As allowed by law and subject to restrictions as are imposed by law, the Agency is
authorized to issue bonds from time to time, if it deems appropriate to do so, in order to finance
all or any part of the Project. Neither the members of the Agency nor any persons executing the
bonds are liable personally on the bonds by reason of their issuance.
503 Other Loans and Grants
Any other loans, grants, guarantees, or financial assistance from the United States, the
state of Idaho CDBG funds, or any other public or private source will be utilized if available.
The Agency may consider funding sources through Local Improvement Districts as authorized
by state law. Neither the members of the Agency nor any persons executing such loans or grants
shall be liable on the loans or grants by reason of their issuance.
The Agency also intends to seek appropriate private contributions, where applicable, to
assist in the funding of the activities described herein.
504 Revenue Allocation Financing Provisions
The Agency hereby adopts revenue allocation financing provisions as authorized by the
Act, effective retroactively to January 1, 2015. These revenue allocation provisions shall apply
to all taxing districts which are located in or overlap the Revenue Allocation Area described on
Attachments 1 and 2 to this Plan. The Agency shall take all actions necessary or convenient to
implement these revenue allocation financing provisions. The Agency specifically finds that the
equalized assessed valuation of property within the Revenue Allocation Area is likely to increase
as a result of the initiation of the Project.
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The Agency, acting by one or more resolutions adopted by its Board, is hereby authorized
to apply all or any portion of the revenues allocated to the Agency pursuant to the Act to pay as
costs are incurred or to pledge all or any portion of such revenues to the repayment of any
moneys borrowed, indebtedness incurred, or bonds issued by the Agency to finance or to
refinance the Project Costs (as defined in Idaho Code Section 50-2903(14)) of one or more urban
renewal projects.
Upon enactment of an ordinance by the governing body of the City finally adopting these
revenue allocation financing provisions and defining the Revenue Allocation Area described
herein as part of the Plan, there shall hereby be created a special fund of the Agency into which
the County Treasurer shall deposit allocated revenues as provided in Idaho Code Section 50-
2908. The Agency shall use such funds solely in accordance with Idaho Code Section 50-2909
and solely for the purpose of providing funds to pay the project costs, including any incidental
costs, of such urban renewal projects as the Agency may determine by resolution or resolutions
of its Board.
A statement listing proposed public improvements and facilities, an economic feasibility
study, estimated project costs, fiscal impact upon other taxing districts, and methods of financing
project costs required by Idaho Code Section 50-2905 is included in Attachments 5, 5A, 5B, and
5C to this Plan. This statement necessarily incorporates estimates and projections based on the
Agency’s present knowledge and expectations. The Agency is hereby authorized to modify the
presently anticipated urban renewal projects and use of revenue allocation financing of the
related project costs if the Board deems such modification necessary or convenient to effectuate
the general objectives of the Plan.
The Agency may also appropriate funds consisting of revenue allocation proceeds on an
annual basis without the issuance of bonds. The Agency has also provided for bonding,
obtaining advances or loans from the City or from the Agency’s other revenue allocation area, or
pursuant to the terms of an owner participation agreement, or private entity and financial
institutions in order to immediately commence construction of certain of the public
improvements. Revenues will continue to be allocated to the Agency until the improvements
identified in Attachment 5C are completely constructed or until any obligation to the City or
any other public entity, other revenue allocation area, or private entity are fulfilled.
Attachments 5A, 5B, and 5C incorporate estimates and projections based on the Agency’s
present knowledge and expectations concerning the length of time to complete the
improvements. The activity may take longer depending on the significance and timeliness of
development. Alternatively the activity may be completed earlier if revenue allocation proceeds
are greater or the Agency obtains additional funds.
The revenue allocation proceeds are hereby irrevocably pledged for the payment of the
principal and interest on the advance of monies or making of loans or the incurring of any
indebtedness such as bonds, notes, and other obligations (whether funded, refunded, assumed, or
otherwise) by the Agency to finance or refinance the Project in whole or in part.
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The Agency is authorized to make such pledges as to specific advances, loans, and
indebtedness as appropriate in carrying out the Project.
The Agency reserves the right to either pay for Project Costs from available revenue (pay
as you go basis) or borrow funds by incurring debt through notes or other obligations.
The Agency is authorized to make such pledges as to specific advances, loans, and
indebtedness as appropriate in carrying out the Project.
Revenue allocation proceeds are deemed to be only a part of the proposed funding
sources for the payment of public improvements and other project improvements. Additionally,
project funding is proposed to be phased for the improvements, allowing various sources of
funds to be accumulated for use.
504.1 Economic Feasibility Study
Attachments 5, 5A, 5B and 5C constitute the Economic Feasibility Study (“Study”) for
the urban renewal area prepared by Richard Horner, former City of Rexburg Finance Officer and
Agency Chairman. The Study constitutes the financial analysis required by the Act and is based
upon existing information from the Agency, City and Madison County. Projections are based
upon input from the Agency, property owners, developers, and others.
504.2 Assumptions and Conditions/Economic Feasibility
Statement
The information contained in Attachments 5, 5A, 5B, and 5C assumes certain
completed and projected actions. Under the provisions of the Act, the revenue allocation shall
continue until the debt or other obligations or other project activity is completed or satisfied. All
debt is projected to be repaid no later than the duration period of the Plan. The total amount of
bonded indebtedness (and all other loans or indebtedness) and the amount of revenue generated
by revenue allocation are dependent upon the extent and timing of private development. Should
all of the development take place as projected, the project indebtedness could be extinguished
earlier, dependent upon the bond sale documents or other legal obligations. Should private
development take longer to materialize or should the private development be substantially less
than projected, then the amount of revenue generated will be substantially reduced and debt may
continue for its full term.
The Plan and attachments incorporate estimates and projections based on the Agency’s
present knowledge and expectations. The Agency may modify the project if the Agency Board
deems such modifications necessary to effectuate the Plan. The Plan proposes certain public
improvements, including utility and street improvements, which will facilitate development in
the Revenue Allocation Area.
The assumptions set forth in the Study are based upon the best information available to
the Agency through public sources or discussions with property owners, developers, and others.
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The information has been analyzed by the Agency and its consultants in order to provide an
analysis that meets the requirements set forth under the Law and Act. At the point in time when
the Agency may seek the issuance of a bond or a loan from lenders or others, a more detailed and
then-current financial pro forma will be presented to those lenders or underwriters for analysis to
determine the borrowing capacity of the Agency. As set forth herein, the Agency reserves the
right to fund the Project on a “pay as you go” basis. The Agency Board will prioritize the
activities set forth in this Plan and determine what funds are available and what activities can be
funded. The Agency will establish those priorities through its mandated annual budgetary
process.
The assumptions concerning revenue allocation proceeds are based upon certain assessed
value increases and assumed tax levy rates.
House Bill 1 adopted by the 58th Idaho Legislature convening in Special Session in
August 2006 (codified at Idaho Code Section 33-802) repealed the operation and maintenance
property tax levy imposed by school districts. House Bill 1 also repealed Idaho Code
Section 50-2908(2)(a)(iii) which required certain revenue allocation funds to be disbursed to
school districts. The financial analysis set forth in Attachments 5, 5A, 5B, and 5C has taken
into account the provisions of Idaho Code § 33-802.
House Bill 315 adopted by the 62nd Idaho Legislature amends Idaho Code Section 63-
602KK, and provides for personal property tax exemption to businesses. Application of the
exemption may have the effect of reducing the increment value and the base value. The Agency,
for this Project Area, will not receive any backfill funds from the State to replace revenue lost by
the imposition of the personal property tax exemption. The Study has taken HB315 into account.
504.3 Ten Percent Limitation
Under the Act, the base assessed valuation for all revenue allocation areas cannot exceed
gross/net ten percent (10%) of the current assessed valuation for the entire City. According to the
Madison County records, the total assessed value for the City (less homeowner’s exemptions and
personal property tax exemption) as of January 1, 2015, is $951,868,331. Therefore, the 10%
limit is $95,186,833.
The estimated adjusted base values for the City’s four (4) existing revenue allocation
areas, plus the Project Area, less homeowner’s exemptions are as follows:
North Highway $ 6,614,852
Washington School $ 1,953,766
Downtown Rexburg $35,015,209
University Boulevard – S. 12th W. $ 8,337,015
North Interchange $ 4,551,342
TOTAL: $56,472,184
The base values for the combined revenue allocation areas total $56,472,184, which is
less than 10% of the City’s 2015 value.
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504.4 Financial Limitation
The Study identifies several capital improvement projects. Use of any particular
financing source for any particular purpose is not assured or identified. Use of the funding
source shall be conditioned on any limiting authority. If revenue allocation funds are
unavailable, then the Agency will need to use a different funding source for that improvement.
The amount of funds available to the Agency from revenue allocation financing is
directly related to the assessed value of new improvements within the Revenue Allocation Area.
Under the Act, the Agency is allowed the revenue allocation generated from inflationary
increases and new development value. Increases have been assumed based upon the projected
value of new development as that development occurs along with possible land reassessment
based on a construction start.
The Study, with the various estimates and projections, constitutes an economic feasibility
study. Costs and revenues are analyzed, and the analysis shows the need for public capital funds
during the project. Multiple financing sources including proposed revenue allocation notes and
bonds, annual revenue allocations, developer contributions, city contributions, and other funds
are shown. This Study identifies the kind, number, and location of all proposed public works or
improvements, a detailed list of estimated project costs, a description of the methods of financing
illustrating project costs, and the time when costs or monetary obligations are to be incurred. See
Idaho Code § 50-2905. Based on these funding sources, the conclusion is that the project is
feasible.
The information contained in the Study assumes certain projected actions. Under the
provisions of the Act, the revenue allocation may continue until the end of the Plan term. The
total amount of indebtedness and the amount of revenue generated by revenue allocation is
dependent upon the extent and timing of private development. Should the development take
place as projected, indebtedness would be extinguished earlier, dependent upon the note
documents and legal obligations therein. Should private development take longer to materialize
or should the private development be substantially less than projected, then the amount of
revenue generated will be substantially reduced and bonds or other legal obligations may
continue for their full term.
The proposed timing for the public improvements may very well have to be modified
depending upon the availability of some of the funds and the Agency’s ability to sell an initial
issue of notes or bonds.
Attachment 5C list those public improvements the Agency intends to construct through
the term of the Plan. The costs of improvements are estimates only. Final costs will be
determined by way of construction contract public bidding or by an agreement between the
developer/owner and Agency.
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The listing of public improvements does not commit the Agency to any particular
improvement, any particular cost, or any particular order of construction. The Agency reserves
its discretion and flexibility in deciding which improvements are more critical for
redevelopment, and the Agency intends to coordinate its public improvements with associated
development by private developers/owners. The Agency also intends to coordinate its
participation in the public improvements with the receipt of certain grants or loans which may
require the Agency’s participation in some combination with the grant and loan funding.
Generally, the Agency expects to develop those improvements identified in
Attachment 5C first, in conjunction with private development within the Project Area
generating the increment as identified in Attachments 5A and 5B.
The Plan has shown that the equalized valuation of the Revenue Allocation Area as
defined in the Plan is likely to increase as a result of the initiation and completion of urban
renewal projects pursuant to the Plan.
504.5 [Reserved]
504.6 Participation with Local Improvement Districts and Business
Improvement Districts
Under the Idaho Local Improvement District Code, Chapter 17, Title 50, Idaho Code, the
City has the authority to establish local improvement districts for various public facilities,
including, but not limited to, streets, curbs, gutters, sidewalks, storm drains, landscaping, and
other like facilities. To the extent allowed by the Law and the Act, the Agency reserves the
authority to participate in the funding of local improvement district facilities. This participation
may include either direct funding to reduce the overall cost of the LID or to participate as an
assessed entity to finance the LID project. The Agency also may participate, as allowed by law,
in a Business Improvement District (BID) as set forth in Chapter 26, Title 50, Idaho Code.
504.7 Issuance of Debt and Debt Limitation
Any debt incurred by the Agency as allowed by the Law and Act shall be secured by
revenues identified in the debt resolution or revenue allocation funds as allowed by the Act. All
such debt shall be repaid within the duration of this Plan, except as may be authorized by law.
504.8 Impact on Other Taxing Districts and Levy Rate
A specific delineation of tax dollars generated by revenue allocation upon each taxing
district has not been prepared. The overall impact of the revenue allocation project is shown in
the Study. Pursuant to Idaho Code, Section 63-802, taxing entities are constrained in
establishing levy rates by a function of the amount each budget of each taxing district can
increase on an annual basis. The amounts set forth in the Study would constitute the amounts
distributed to other taxing entities from the Revenue Allocation Area if there were no urban
renewal project. Each individual district’s share of that amount would be determined by its
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particular levy rate as compared to the other districts in any given year. Therefore, the impact of
revenue allocation is more a product of the imposition of Section 63-802 than the creation of the
Project Area.
The assessed value for each property in a revenue allocation area consists of a base value
and an increment value. The base value is the assessed value as of January 1 of the year in
which a revenue allocation area is approved by a municipality, with periodic adjustments
allowed by Idaho law. The increment value is the difference between the base assessed value
and current assessed value in any given year while the property is in a revenue allocation area.
Under Section 63-802, Idaho Code, taxing entities are constrained in establishing levy rates by
the amount each budget of each taxing district can increase on an annual basis. Taxing entities
submit proposed budgets to the County Board of Commissioners, which budgets are required to
comply with the limitations set forth in Section 63-802, Idaho Code.
The County Board of Commissioners calculates the levy rate required to produce the
proposed budget amount for each taxing entity using the assessed values which are subject to
each taxing entity’s levy rate. Assessed values in urban renewal districts which are subject to
revenue allocation (incremental values) are not included in this calculation. The combined levy
rate for the taxing entities is applied to the incremental property values in a revenue allocation
area to determine the amount of property tax revenue which is allocated to an urban renewal
agency. The property taxes generated by the property values in the urban renewal districts that
are not subject to revenue allocation and by properties outside revenue allocation areas are
distributed to the other taxing entities. Properties in revenue allocation areas are subject to the
same levy rate as they would be outside a revenue allocation area. The difference is how the
revenue is distributed.
In addition, without the Revenue Allocation Area and its ability to pay for public
improvements and public facilities, fewer substantial improvements within the Revenue
Allocation Area would be expected in the next five to ten years; hence, there would be lower
increases in assessed valuation to be used by the other taxing entities. If the overall levy rate is
less than as assumed, the Agency shall receive fewer funds from revenue allocation.
One result of Section 63-802, Idaho Code and Section 63-301A, Idaho Code is the likely
reduction of the levy rate as assessed values increase for property within each taxing entity’s
jurisdiction. If the overall levy rate is less than as assumed, the Agency shall receive fewer funds
from revenue allocation. Section 63-301A, Idaho Code, prohibits taxing entities from including,
as part of the new construction roll, the increased value related to new construction within a
revenue allocation area until the revenue allocation authority is terminated. Any new
construction within the Project Area is not available for inclusion by the taxing entities to
increase their budgets. Less tax revenue will be available to those taxing entities. Upon
termination of this Plan, the taxing entities will be able to include the accumulated new
construction roll value in setting the following year’s budget and revenue from such value is not
limited to the three percent increase allowed in Section 63-802(1)(a).
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Generally, the impact on the taxing entities would be to determine the Agency’s projected
revenue and disburse those funds in the same ratio as the respective levy rates in the Revenue
Allocation Area of each taxing district. For Tax Year 20141, those districts and rates are as
follows for properties located within the Revenue Allocation Area:
The 2014 levy rates as set forth above, together with additional detail set forth in
Attachment 5B hereto, are net of voter approved bonds and levies.
As noted above, Section 63-802, Idaho Code, may have the effect of reducing the levy
rate as assessed values increase for property within each taxing entity’s jurisdiction; however, it
is unclear how Section 63-602KK may impact the levy rate. The Study has made certain
assumptions concerning the levy rate. The levy rate is estimated to increase 1% in 2015, and
thereafter 1.5% per year for the life of the revenue allocation area. The annual increment value
is expected to increase by approximately 3% a year with larger increases expected in tax years
2016, through 2024 due to probable commercial developments. If the overall levy rate is less
than projected, the Agency shall receive fewer funds from revenue allocation. Since most of the
property expected to be developed during the life of this revenue allocation area is located north
of Moody Road and is or will be annexed into the City before it is developed, the 2014 levy rate
for the Rexburg North of Moody Road area, plus an estimated 1% increase to the levy rate for
2015, then the estimated levy rate of .012100099 will be used for the Agency’s revenue
projections and Study. To obtain City services, developments are required to annex into the
City’s limits.
1 Due to the timing of the taxing districts’ budget and levy setting process, certification of the 2015 levy rates did not
occur until the this Plan had been prepared and considered by the Agency. In order to provide a basis to analyze the
impact on the taxing entities, the 2014 levy rates are used. The 2014 levy rates are estimated to increase 1% in
2015.
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The 2008 Idaho Legislature passed and Governor Otter signed House Bill 470 as
amended in the Idaho Senate, which bill became effective retroactive to January 1, 2008 (Session
Laws, Chapter 253). The bill amended Idaho Code Sections 50-2908, 63-803, and 63-811. In
brief, the bill provided that an urban renewal agency shall not be entitled to revenue allocation
proceeds from certain levy increases which are allowed by either specific statutory authorization
or approved by an election of the qualified electors of the particular taxing district. Therefore,
for any levy election held after January 1, 2008, the Agency will not receive revenue allocation
funds which would have been generated by imposing that levy on the assessed valuation within
the Project Area. Additionally, as this Plan has been adopted after January 1, 2008, any voter
approved levy adopted prior to January 1, 2008, will not be available for use by the Agency.
Likewise, the Study has taken into account the following legislative changes impacting
the revenues that flow to the Agency: (1) House Bill 697, adopted by the 61st Idaho Legislature
amending Idaho Code § 50-2908 to provide that urban renewal agencies no longer receive an
allocation from levies for the payment of judgments pursuant to section 63-1305A, Idaho Code,
until after July 1, 2017; and (2) House Bill 76 adopted by the 63rd Idaho Legislature amending
Idaho Code § 50-2908 to provide that urban renewal agencies no longer receive an allocation
from the school emergency levies after July 1, 2015.
The Study which is attached as Attachments 5, 5A, 5B, and 5C has taken the foregoing
amendments into account in estimating the levy rates. The levy rates shown above are the
aggregate levy rates as of 2014, less certain levies as described above.
505 Phasing and Other Fund Sources
The Agency anticipates funding only a portion of the entire cost of the public
improvements shown on Attachment 5C. Other sources of funds shall include developer
contributions and City participation. Agency participation shall be determined by the amount of
revenue allocation funds generated.
506 Lease Revenue and Bonds
Under the Law, the Agency is authorized to issue revenue bonds to finance certain public
improvements identified in the Plan. Under that type of financing, the public entity would pay
the Agency a lease payment annually which provides certain funds to the Agency to retire the
bond debt. Another variation of this type of financing is sometimes referred to as conduit
financing, which provides a mechanism where the Agency uses its bonding authority for the
Project, with the end user making payments to the Agency to retire the bond debt. These sources
of revenues are not related to revenue allocation funds and may not be particularly noted in the
Study, because of the “pass through” aspects of the financing. Under the Act, the economic
feasibility study focuses on the revenue allocation aspects of the Agency’s financial model.
These financing models typically are for a longer period of time than the 20-year period
set forth in the Act. However, these financing models do not involve revenue allocation funds,
43
but rather funds from the end users which provide a funding source for the Agency to continue to
own and operate the facility beyond the term of the Plan as allowed by Idaho Code Section 50-
2905(8) as those resources involve funds not related to revenue allocation funds.
This Plan contemplates the Agency’s issuance of a bond in the estimated amount of
$5,385,000 to be used to complete the first three years of planned construction of public
infrastructure. Construction beyond that amount will be funded on a pay-as-you-go basis, unless
further bonding is deemed necessary at a later date. Additional details are included in
Attachment 5C.
507 [Reserved]
600 ACTIONS BY THE CITY AND THE COUNTY
The City, the County, and Sugar City shall aid and cooperate with the Agency in carrying
out this Plan and shall take all actions necessary to ensure the continued fulfillment of the
purposes of this Plan and to prevent the recurrence or spread in the area of conditions causing
deterioration. Actions by the City, Sugar City and County shall include, but not be limited to,
the following:
a. Institution and completion of proceedings necessary for changes and
improvements in private and publicly owned public utilities within or affecting
the Project Area.
b. Revision of zoning (if necessary) within the Project Area to permit the land uses
and development authorized by this Plan.
c. Imposition wherever necessary or appropriate controls within the limits of this
Plan upon parcels in the Project Area to ensure their proper development and use.
d. Provision for administrative enforcement of this Plan by the City after
development. The City, Sugar City, County and the Agency may develop and
provide for enforcement of a program for continued maintenance by owners of all
real property, both public and private, within the Project Area throughout the
duration of this Plan.
e. Building Code enforcement.
f. Performance of the above actions and of all other functions and services relating
to public peace, health, safety, and physical development normally rendered in
accordance with a schedule which will permit the redevelopment of the Project
Area to be commenced and carried to completion without unnecessary delays.
44
g. Institutional and completion of proceedings necessary for the establishment of a
local improvement district under Chapter 17, Title 50, Idaho Code, or a BID
under Chapter 26, Title 50, Idaho Code.
h. The undertaking and completing of any other proceedings necessary to carry out
the Project.
i. Administration of Community Development Block Grant funds that may be made
available for this Project.
j. Appropriate agreements with the Agency for administration, supporting services,
funding sources, and the like.
k. Imposition, whenever necessary of controls within the limits of this Plan upon
parcels in the Project Area to ensure their proper development and use.
l. Joint funding of certain public improvements, including but not limited to
improvements to sewer treatment facilities.
m. Use of public entity labor, services, and materials for construction of the public
improvements listed in this Plan.
n. Waiver of any hookup or installation fee for sewer, water, or other utility services
for any facility owned by any public agency, including any Agency facility.
n. Preservation of historical sites (if possible).
The foregoing actions to be taken by the City do not constitute any commitment for
financial outlays by the City.
Actions by the County shall include, but not be limited to, entering into an agreement
with the Agency and/or the City as may be necessary to make improvements to the portion of the
Project Area located within the boundaries of the County. The foregoing actions to be taken by
the County do not constitute any commitment for financial outlays by the County.
Actions by Sugar City shall include, but not be limited to, entering into an agreement
with the Agency and/or the City as may be necessary to make improvements to the portion of the
Project Area located within the boundaries of Sugar City. The foregoing actions to be taken by
Sugar City do not constitute any commitment for financial outlays by Sugar City.
601 Maintenance of Public Improvements
The Agency has not identified any commitment or obligation for long-term maintenance
of the public improvements identified. The Agency will need to address this issue with the
appropriate entity, public or private, who has benefited from or is involved in the ongoing
preservation of the public improvement.
45
700 ENFORCEMENT
The administration and enforcement of this Plan, including the preparation and execution
of any documents implementing this Plan, shall be performed by the Agency and/or the City.
The provisions of this Plan or other documents entered into pursuant to this Plan may
also be enforced by court litigation instituted by either the Agency or the City. Such remedies
may include, but are not limited to, specific performance, damages, reentry, injunctions, or any
other remedies appropriate to the purposes of this Plan. In addition, any recorded provisions
which are expressly for the benefit of owners of property in the Project Area may be enforced by
such owners.
800 DURATION OF THIS PLAN, TERMINATION, AND ASSET REVIEW
Except for the nondiscrimination and non-segregation provisions which shall run in
perpetuity, the provisions of this Plan shall be effective, and the provisions of other documents
formulated pursuant to this Plan, shall be effective for twenty (20) years from the effective date
of the Plan subject to modifications and/or extensions set forth in Idaho Code § 50-2904. The
revenue allocation authority will expire on December 31, 2035, except for any revenue allocation
proceeds received in calendar year 2036, as contemplated by Idaho Code § 50-2905(7).
This Plan shall terminate no later than December 31, 2035, except for revenues which
may be received in 2036. Idaho Code § 50-2093(5) provides the Agency shall adopt a resolution
of intent to terminate the revenue allocation area by September 1. In order to provide sufficient
notice of termination to the affected taxing districts to allow them to benefit from the increased
budget capacity, the Agency will use its best efforts to provide notice of its intent to terminate
this Plan and its revenue allocation authority by May 1, 2036, or if the Agency determines an
earlier terminate date, then by May 1 of the early termination year:
a. When the Revenue Allocation Area plan budget estimates that all financial
obligations have been provided for, the principal of and interest on such moneys,
indebtedness, and bonds have been paid in full or when deposits in the special
fund or funds created under this chapter are sufficient to pay such principal and
interest as they come due, and to fund reserves, if any, or any other obligations of
the Agency funded through revenue allocation proceeds shall be satisfied and the
Agency has determined no additional project costs need be funded through
revenue allocation financing, the allocation of revenues under Section 50-2908,
Idaho Code, shall thereupon cease; any moneys in such fund or funds in excess of
the amount necessary to pay such principal and interest shall be distributed to the
affected taxing districts in which the Revenue Allocation Area is located in the
same manner and proportion as the most recent distribution to the affected taxing
districts of the taxes on the taxable property located within the Revenue
Allocation Area; and the powers granted to the urban renewal agency under
Section 50-2909, Idaho Code, shall thereupon terminate.
46
b. In determining the termination date, the Plan shall recognize that the Agency shall
receive allocation of revenues in the calendar year following the last year of the
revenue allocation provision described in the Plan.
c. For the fiscal year that immediately predates the termination date, the Agency
shall adopt and publish a budget specifically for the projected revenues and
expenses of the Plan and make a determination as to whether the Revenue
Allocation Area can be terminated before January 1 of the termination year
pursuant to the terms of Section 50-2909(4), Idaho Code. In the event that the
Agency determines that current tax year revenues are sufficient to cover all
estimated expenses for the current year and all future years, by May 1, but in any
event, no later than September 1, the Agency shall adopt a resolution advising and
notifying the local governing body, the county auditor, and the State Tax
Commission, recommending the adoption of an ordinance for termination of the
Revenue Allocation Area by December 31 of the current year, and declaring a
surplus to be distributed as described in Section 50-2909, Idaho Code, should a
surplus be determined to exist. The Agency shall cause the ordinance to be filed
with the office of the county recorder and the Idaho State Tax Commission as
provided in Section 63-215, Idaho Code.
Upon termination of the revenue allocation authority of the Plan to the extent the Agency
owns or possesses any assets, the Agency shall dispose of any remaining assets by granting or
conveying or dedicating such assets to the applicable local entity.
As allowed by Idaho Code Section 50-2905(8), the Agency may retain assets or revenues
generated from such assets as loans; the Agency shall have resources other than revenue
allocation funds to operate and manage such assets. Similarly, facilities which provide a least
income stream to the Agency for full retirement of the facility debt will allow the Agency to
meet debt services obligations and provide for the continued operation and management of the
facility.
For those assets which do not provide such resources or revenues, the Agency will likely
convey such assets to the City, depending on the nature of the asset.
Upon termination of the revenue allocation authority of the Plan, to the extent the Agency
owns or possesses any assets, the Agency shall dispose of any remaining assets by granting or
conveying or dedicating such assets to the applicable local entity.
900 PROCEDURE FOR AMENDMENT
The Plan may be further modified at any time by the Agency provided that, if modified
after disposition of real property in the Project Area, the modifications must be consented to by
the developer or developers or his successor or successors of such real property whose interest is
substantially affected by the proposed modification. Where the proposed modification will
47
substantially change the Plan, the modifications must be approved by the City Council in the
same manner as the original Plan. Substantial changes for City Council approval purposes shall
be regarded as revisions in project boundaries, land uses permitted, land acquisition, or extending
the years of the Plan, and other changes which will violate the objectives of this Plan.
Amendments are subject to certain limitations as set forth in Idaho Code § 50-2033; however,
amendments that do not seek to increase the geographic area of the plan, or do not seek to extend
the years of the plan beyond the maximum term allowed are permissible, and include
amendments to add additional projects that were not originally anticipated.
1000 SEVERABILITY
If any one or more of the provisions contained in this Plan to be performed on the part of
the Agency shall be declared by any court of competent jurisdiction to be contrary to law, then
such provision or provisions shall be null and void and shall be deemed separable from the
remaining provisions in this Plan and shall in no way affect the validity of the other provisions of
this Plan.
1100 ANNUAL REPORT AND OTHER REPORTING REQUIREMENTS
Under the Law, the Agency is required to file with the City, on or before March 31 of
each year, a report of the Agency’s activities for the preceding calendar year, which report shall
include a complete financial statement setting forth its assets, liabilities, income, and operating
expenses as of the end of such calendar year. This annual report shall be considered at a public
meeting to report these findings and take comments from the public.
Additionally, House Bill 560 adopted by the 62nd Idaho Legislature, Second Regular
Session, codified at Idaho Code Section 67-450E, requires the Agency to comply with certain
reporting requirements. On or before December 1 of each year, the Agency must submit to the
online central registry certain administrative information and financial information, including
information regarding bonds or other indebtedness. Failure to comply with the mandatory
reporting requirements may result in compliance measures imposed by the Madison County
Board of County Commissioners.
1101 APPENDICES, ATTACHMENTS, EXHIBITS, TABLES
All attachments and tables referenced in this Plan are attached and incorporated herein
by their reference. All other documents referenced in this Plan but not attached are incorporated
by their reference as if set forth fully.
Attachment 1
Project Area and Revenue Allocation Area Boundary Map
Supplemental map (Attachment 1 to the Plan)
Attachment 2
Description of Project Area and Revenue Allocation Area
This Project Area includes the U.S. Highway 20 and North 2nd East interchange, and is
generally bounded on the south by E. Moran View Road, and to the east by South Railroad Avenue.
The Project Area consists of approximately [679] acres as more particularly described as
follows:
1) All parcels that border North 2nd East from the Highway 20 Interchange on the north, to
Moran View Road on the south.
2) All parcels that border Moody Road from 1800 feet west of North 2nd East and east to
Railroad Avenue, except for one parcel, the fertilizer plant on the southwest corner of the
intersection of Moody Road and Railroad Avenue.
3) All parcels not included above that are between Highway 20 on the north, Railroad
Avenue on the east, Moody Road on the south and North 2nd East on the west.
4) The Highways 20 North Rexburg interchange area that borders the above parcels.
Attachment 3
Private Properties Which May Be Acquired by Agency
1. Property is intended to be acquired that is necessary for the extension or expansion of certain rights-
of-way. No other particular properties have been identified for acquisition by the Agency. The
Agency does not intend to purchase property for future development by private persons.
2. The Agency reserves the right to acquire any additional right-of-way or access routes near or around
existing or planned rights-of-way.
3. The Agency reserves the right to acquire property needed for the development of public
improvements and public facilities and/or to further remediation of environmental conditions that
may exist on private property.
4. The Agency may reimburse the City for property acquired by the City to fulfill the needs of this
plan.
Attachment 4
Map Depicting Expected Land Uses and Current Zoning
Within Revenue Allocation Area and Project Area
Attachment 5
North Interchange Urban Renewal Project Area
Statement of Proposed Public Improvements, Costs, Revenue, Tax Impacts, and Financing
Methods
Introduction
The Plan’s termination date is December 31, 2035, however, recognizing Idaho Code § 50-
2905(7) allows the agency to receive the allocation of revenues in the calendar year following the
last year of the revenue allocation provision in the Plan, expenditure of funds for projects is
anticipated through 2036.
Anticipated costs of the urban renewal project, revenue sources, estimated revenue
allocations, and the amount of indebtedness required to complete the project are shown in
Attachments 5A, 5B, and 5C. Attachments 5A, 5B and 5C necessarily incorporate estimates and
projections based on the Agency’s present knowledge, and expectations. The Agency may modify
the presently anticipated urban renewal projects and use of revenue allocation financing or the
related project costs if the Agency Board deems such modification necessary or convenient to
effectuate the general objectives of the Plan. Any further modification will affect the estimate.
Attachment 5A depicts estimated assessments of the property value located in the revenue
allocation area through 2036. Attachment 5B sets forth the anticipated tax revenues allocated to the
revenue allocation area through the same period.
Attachment 5B also demonstrates the overall estimated impact of revenue allocation
financing on all taxing districts in which the revenue allocation area is located. The impact on
individual taxing districts would be determined by those districts’ levies at the time of the
establishment of the revenue allocation area and the projected addition of private investment within
the revenue allocation area. As set forth in this Plan, the taxing districts have independent authority
concerning the setting of their levies.
The information contained in Attachment 5A, 5B and 5C assumes certain projected actions.
Under the provisions of the act, the revenue allocation shall continue until any obligation is satisfied.
All debt is projected to be repaid no later than the duration period of the Plan. Second, the total
amount of bonded indebtedness and the amount of revenue generated by revenue allocation is
dependent upon the extent and timing of private development. Attachment 5C projects
expenditures through the term of the Plan. If all of the planned development takes place as
projected, bonded or other indebtedness could be extinguished earlier, dependent upon the bond sale
documents or other legal obligations. If private investment takes longer to materialize, or should the
private development be substantially less than projected, then the amount of revenue generated will
be substantially reduced. In that instance certain public improvement projects may not be
completed.
This Plan and Attachments 5A, 5B, and 5C incorporate estimates and projections based on
the Agency’s present knowledge and expectations. The Agenc y may modify the project if the
Agency Board deems such modifications necessary to implement this Plan. This Plan proposes
certain public improvements, including utility improvements, the improvements to streetscapes,
street improvement, improvements to intersections and traffic signals, sidewalks, curb and gutters,
street lighting, and other infrastructure cost, which will facilitate development in the revenue
allocation area.
Economic Feasibility Statement
Attachments 5A, 5B, and 5C, with their various estimates and projections, constitute an
economic feasibility study. Costs and revenues are analyzed, and the analysis shows the need for
public capital funds during the project. Multiple financing sources including proposed revenue
allocation notes and bonds, annual revenue allocations, developer contributions, grant funds, in-kind
services, and other public funds are shown. Attachment 5C identifies the kind, number, and
location of all proposed public works or improvements, a detailed list of estimated project costs, a
description of the methods of financing illustrating project cost, and the time when related costs or
monetary obligations are to be incurred (See Idaho Code 50-2905). Based on these funding sources,
the conclusion is that the project is feasible.
The proposed timing for the public improvements may very well have to be modified
depending upon the availability of some of the funds and the agency’s ability or desire to sell an
initial issue of notes or bonds, including a developer note.
Attachment 5A, Estimated Net Taxable Value of New Private Development
(Commercial/Residential), projects estimated increases in assessed value resulting from new private
development in the revenue allocation area beginning in 2016, and illustrates how the Project Area’s
new development would generate net revenue to the Agency.
Attachment 5B, Estimated Annual Revenue Allocations, shows the estimated sources of
funds through 2036.
Attachment 5C, Estimated Annual Revenues and Costs, shows the estimated sources and
uses of funds through 2036.
The analysis has assumed certain levy rates as a result of current statutory provisions and
projections.
Description of Public Financing Sources
Revenue Allocation-Revenue allocation financing (sometimes referred to as tax increment
financing) applies the increase in property taxes within a defined area to public infrastructure
improvements. The improvements are designed to enhance the private development potential, thus
creating the additional assessed valuation. The process is initiated upon action of a municipality,
whereupon the county assessor will establish the assessed valuation within the revenue allocation
area for a base year. The incremental revenue may be applied directly as it is received by the
authorized redevelopment agency or, more commonly, applied as a long-term revenue stream for the
issuance of bonds or other debt obligations. Once this Plan has been fully implemented and/or the
bonds or debt obligations have been retired, the incremental revenue flows back to the appropriate
taxing districts in the same proportion as the base revenue. Revenue allocation has been available in
Idaho since 1988 and is anticipated to be the major, and thus most essential, component for Plan
financing.
Loans and Notes – The time delay from initiation of Plan implementation and the
establishment of the base assessment role is problematic with revenue allocation. Several years may
elapse before the incremental tax revenue stream can adequately demonstrate the strength necessary
to issue bonds. Short term notes or loans issued by local lenders or others are a means of providing
the bridge financing necessary to begin development work. Bond proceeds can then be used to “take
out” the notes. The Agency may borrow other funds from other sources as needed and authorized
under the Plan.
Local Improvement Districts (LIDs) – This financing mechanism is used to fund capital
improvements and distribute the cost among a number of property owners. Cities, Counties, and
highway districts often use LIDs for local street and sewer projects. A series of ordinances are
adopted to create the district, approve the assessment roll, and issue construction warrants and long-
term bonds. The tax-exempt bonds are issued through bid or negotiated sale with revenue collection
tied to the property tax system. Bond terms are usually twenty years.
Community Reinvestment - Local lenders are making funds available at below-market inters
rates in order to meet their Community Reinvestment Act obligations.
Community Development Block Grant (CDBG) – The City may choose to submit an
application from time to time for Idaho Community Development Block Grant funding in order to
achieve the objectives set forth in this plan. A block grant application must meet certain eligibility
requirements, and is constrained to a specific list of eligible activities. However, Community
Development Block Grant funding may be some assistance in completing portions of the Agency’s
funding objectives.
Developer Advances – Developer Advances may be a desirable approach to initiate
development projects given the delayed flow of revenue under tax increment financing. The terms
of the advance are negotiable on a project-by-project basis, but possible uses include; master
planning, project administration, necessary legal work, and even preliminary public infrastructure
work.
City or Agency Advances – A city or agency may provide advances or contributions for
certain public improvements from another existing project area.
Conduit Financing – The Agency reserves the right to participate as a conduit financing
vehicle for those projects described in the Plan, using lease or revenue proceeds, rather than revenue
allocation proceeds.
Brownfield Loans/Grants - The City may choose to pursue a brownfield grant to assist a
private property owner or municipality clean up a contaminated site located within an Urban
Renewal Area.
Financing Conclusion
This Plan has shown that the equalized valuation of the revenue allocation area as defined in
the Plan is likely to increase as a result of the initiation and completion of urban renewal projects
pursuant to the Plan.
Construction
Year Tax Year
Fiscal
Year
Ending
Beginning
Balance
New
Construction 3% Inflation Cumulative Total
2015 2016 2017 18,000,000 - 18,000,000
2016 2017 2018 18,000,000 4,000,000 540,000 22,540,000
2017 2018 2019 22,540,000 10,000,000 676,200 33,216,200
2018 2019 2020 33,216,200 10,000,000 996,500 44,212,700
2019 2020 2021 44,212,700 5,000,000 1,326,400 50,539,100
2020 2021 2022 50,539,100 5,000,000 1,516,200 57,055,300
2021 2022 2023 57,055,300 3,000,000 1,711,700 61,767,000
2022 2023 2024 61,767,000 1,000,000 1,853,000 64,620,000
2023 2024 2025 64,620,000 1,000,000 1,938,600 67,558,600
2024 2025 2026 67,558,600 - 2,026,800 69,585,400
2025 2026 2027 69,585,400 - 2,087,600 71,673,000
2026 2027 2028 71,673,000 - 2,150,200 73,823,200
2027 2028 2029 73,823,200 - 2,214,700 76,037,900
2028 2029 2030 76,037,900 - 2,281,100 78,319,000
2029 2030 2031 78,319,000 - 2,349,600 80,668,600
2030 2031 2032 80,668,600 - 2,420,100 83,088,700
2031 2032 2033 83,088,700 - 2,492,700 85,581,400
2032 2033 2034 85,581,400 - 2,567,400 88,148,800
2033 2034 2035 88,148,800 - 2,644,500 90,793,300
2034 2035 2036 90,793,300 - 2,723,800 93,517,100
1 New Construction for the period of 2015-2023 is based largely on projections
of development for the area forecasted by WalMart officials
2 Inflation reflects estimated net property value increases based on 75% of the
past inflation in the construction cost index.
3 As most of the development is expected to occur in the City of Rexburg,
or in areas that will be annexed into the City of Rexburg in order to obtain City services,
new construction was not calculated for the area within the Sugar City limits.
Attachment 5A
Estimated Net Taxable Value of New Private Development (Commercial/Residential)
Rexburg North Interchange Urban Renewal Project
Final 9/2/2015
Construction
Year
Tax Year
Assessed
Fiscal Year
Taxes Received
Estimated
Valuation Tax Levy Rate
Agency
Revenue
2015 2016 2017 18,000,000 0.012130835 218,355
2016 2017 2018 22,540,000 0.012312798 277,530
2017 2018 2019 33,216,200 0.012497490 415,119
2018 2019 2020 44,212,700 0.012684952 560,836
2019 2020 2021 50,539,100 0.012875226 650,702
2020 2021 2022 57,055,300 0.013068355 745,619
2021 2022 2023 61,767,000 0.013264380 819,301
2022 2023 2024 64,620,000 0.013463346 870,001
2023 2024 2025 67,558,600 0.013665296 923,208
2024 2025 2026 69,585,400 0.013870275 965,169
2025 2026 2027 71,673,000 0.014078330 1,009,036
2026 2027 2028 73,823,200 0.014289505 1,054,897
2027 2028 2029 76,037,900 0.014503847 1,102,842
2028 2029 2030 78,319,000 0.014721405 1,152,966
2029 2030 2031 80,668,600 0.014942226 1,205,368
2030 2031 2032 83,088,700 0.015166359 1,260,153
2031 2032 2033 85,581,400 0.015393855 1,317,428
2032 2033 2034 88,148,800 0.015624762 1,377,304
2033 2034 2035 90,793,300 0.015859134 1,439,903
2034 2035 2036 93,517,100 0.016097021 1,505,347
1 Estimated valuation is from Attachment 5A.
2 The tax levy rates are estimated to generally increase 1.5% per year, starting in 2016.
3 New construction was not calculated for the area within the Sugar City limits.
Therefore, the Sugar City levy amount was not used in the levy calculation.
Total levies in Sugar City limits are very similar to those in Rexburg.
4 The Fire District levy vs. the Rexburg city levy on properties not annexed
to the City of Rexburg was not considered since very little value resides in those properties.
5 New development will be required to be annexed into a city limits in order to receive
water and sewer services; therefore, the city levy should be the one used in the projection of revenue.
6 An estimate of the 2015 Madison County Ambulance levy is used (as opposed to the 2014 levy rate)
as the levy is likely to be increased to .0004 for 2015 per County officials.
Attachment 5B
Estimated Annual Revenue Allocations
Rexburg North Interchange Urban Renewal Project
Final 9/2/2015
2014
Levy Rates
Rexburg South of
Moody Road
Rexburg
North of
Moody Road
County
South of
Moody Road
County North
of Moody
Road Sugar City Government
0.004804785 0.004804785 0.004804785 0.004804785 0.004804785 Madison County
0.001670826 0.001670826 0.001670826 0.001670826 0.001670826 Madison County Road & Bridge
0.004171820 0.004171820 0.000000000 0.000000000 0.002495077 City Levy
0.000046965 0.000016533 0.000046965 0.000016533 0.000016533 School District Levy
0.000595122 0.000595122 0.000595122 0.000595122 0.000595122 Madison Library District
0.000400000 0.000400000 0.000400000 0.000400000 0.000400000 Madison Ambulance District
0.000269840 0.000269840 0.000269840 0.000269840 0.000269840 Mad. Cty. Mosquito Abatement
0.000051370 0.000051370 0.000051370 0.000051370 0.000051370 Cemetery Levy
0.000000000 0.000000000 0.001093664 0.001093664 0.001093664 Fire District
0.012010728 0.011980296 0.008932572 0.008902140 0.011397217 TOTAL
0.012130835 0.012100099 0.009021898 0.008991161 0.011511189 added1%
Fiscal Year>2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Totals
Beginning Balance (20) 582 96 250 318 (581) (961) (728) (367) (645) (176) (909) (447) (263) (609) (35) 571 548 1,408 2,331 3,182
Sources of Funds:
Revenue Allocation Estimate 218 278 415 561 651 746 819 870 923 965 1,009 1,055 1,103 1,153 1,205 1,260 1,317 1,377 1,440 1,505 18,870
Sale of Property 350 350
Clawback from Developers 463 463 State Highway Dept.
Contribution 1,400 442 180 2,022
City Utility Reimbursement 1,836 1,836
Borrowing 5,385 5,385
Total Sources of Funds - 9,084 660 628 415 741 651 746 819 870 923 965 1,009 1,055 1,103 1,153 1,205 1,260 1,317 1,377 1,440 1,505 28,926
Total Funds Available - 9,064 1,242 724 665 1,059 70 (215) 91 503 278 789 100 608 840 544 1,170 1,831 1,865 2,785 3,771 4,687 28,926
Admin./Prof. Services 20 5 5 5 5 5 5 5 5 3 3 3 3 3 3 3 3 3 3 3 3 10 106
Bond Reserve & Capitalized
Interest 733 - (455) 278
Bond Costs 250 250
Bond Payments - 161 216 322 436 454 454 453 452 451 454 451 453 455 455 450 455 453 451 453 455 8,385
Right-of-Way & Property
Acquisition 900 900
15th North Widening 90 48 276 48 462
17th North Signal 360 360
17th North Widening 48 276 48 372 2nd East ID20 North Ramp
Signal 720 720
2nd East ID20 North Ramp
Widening 163 18 84 18 283 2nd East Moody-ID20
Widening 306 36 210 36 588
2nd East Moody-Moran View
Widening 300 48 276 48 672 2nd East Widening by
Walmart 84 12 90 30 216 2nd East & Moody Road
Signal 77 77
Curb & Gutter 422 422
Interior Streets 3rd Lane 120 600 120 840
Lighting 672 144 144 144 1,104
Moody Road Widening 600 84 240 48 266 108 84 1,430
Moody Road Canal Bridge 120 120
Moody Road/Hwy 33 Signal 360 360
Moody Road/RR Intersection 1,400 1,400
Moodly Road Sidewalk 41 41
Paths Walking/Biking 360 600 960
Water & Sewer Oversizing 228 228 67 523
Wastewater Liftstations 240 240 480 Wastewater Lines (City
payback) 660 660
Water Lines (City payback) 1,176 1,176
Contingency @10% 260 88 23 2 108 52 5 - 62 - 112 8 37 89 11 13 74 - - 12 - 957
Overhead Charges @1% 38 9 2 0 11 5 0 - 6 - 11 1 4 9 1 1 7 - - 1 - 108
Total Uses of Funds 20 8,482 1,146 474 347 1,640 1,032 512 458 1,148 454 1,698 548 870 1,450 578 600 1,283 456 454 589 10 24,249
Ending Balance (20) 582 96 250 318 (581) (961) (728) (367) (645) (176) (909) (447) (263) (609) (35) 571 548 1,408 2,331 3,182 4,677 4,677
Attachment 5C
Estimated Annual Revenues and Costs (Figures Shown in 000)
Rexburg North Interchange Urban Renewal Project
Final 9/2/2015
Uses of Funds:
Attachment 6
Madison County Board of County Commissioners Resolution No. 375
Attachment 7
Sugar City City Council Resolution No. 2014-2
Attachment 8
Rexburg City Council Resolution No. 2014-16
RESOLUTION NO. 2014-16
Y THE COUNCIL: A RESOLUTION BY THE REXBURG CITY COUNCIL DETERMINING A
CERTAIN AREA WITHIN THE CITY TO BE A DETERIORATED OR
DETERIORATING AREA AS DEFINED BY IDAHO CODE SECTIONS 50-2018(9)
AND 50-2903(8); DIRECTING THE URBAN RENEWAL AGENCY OF REXBURG
TO COMMENCE THE PREPARATION OF AN URBAN RENEWAL PLAN
SUBJECT TO CERTAIN CONDITIONS, WHICH PLAN MAY INCLUDE REVENUE
ALLOCATION PROVISIONS FOR ALL OR PART OF THE AREA; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Council and Mayor of Rexburg respectively on or about November 6, 1991,
adopted and approved a resolution creating the Rexburg Redevelopment Agency (the “Agency”),
authorizing it to transact business and exercise the powers granted by the Idaho Urban Renewal Law
of 1965, as amended, Chapter 20, Title 50, Idaho Code as amended (hereinafter the “Law”), and the
Local Economic Development Act, Chapter 29, Title 50, as amended (hereinafter the “Act”) upon
making the findings of necessity required for creating said Agency;
WHEREAS, the City Council of the city of Rexburg, Idaho (the “City”), after notice duly
published, conducted a public hearing on the North Highway Urban Renewal Project pursuant to the
North Highway Urban Renewal Plan (the “North Highway Plan”) to redevelop a portion of the City,
pursuant to the Law and the Act;
WHEREAS, following said public hearing, the City Council adopted its Ordinance
No. 728 on December 27, 1991, approving the North Highway Urban Renewal Plan and making
certain findings;
WHEREAS, the City Council, after notice duly published, conducted a public
hearing on April 9, 1997, and passed Resolution No. 97.01, finding the Washington School Site Area
as "deteriorated" or a "deteriorating area" as defined by Idaho Code Section 50-2018(h), (i) and 50-
2903(b) (now codified as Idaho Code Section 50-2018(8) and (9), and 50-2903(8) respectively),
declaring such area as an urban renewal area, making the necessary findings as required by Idaho
Code Section 50-2008(a) and authorizing the Agency to prepare an urban renewal plan;
WHEREAS, the Rexburg City Council, after notice duly published, conducted a public
hearing on the Washington School Urban Renewal Plan (the “Washington School Urban Renewal
Plan”);
WHEREAS, following said public hearing, the City Council adopted its Ordinance
No. 794 on June 3, 1997, approving the Washington School Urban Renewal Plan, and making
certain findings;
WHEREAS, the City Council, after notice duly published, conducted a public hearing on the
North Highway Amended and Restated Urban Renewal Plan (the “North Highway Amended and
Restated Plan”);
WHEREAS, following said public hearing, the City Council adopted its Ordinance
No. 815 on December 30, 1998, approving the North Highway Amended and Restated Plan and
making certain findings;
WHEREAS, the City Council, after notice duly published, conducted a public hearing on the
Downtown District Redevelopment Plan (the “Downtown Plan”);
WHEREAS, following said public hearing, the City Council adopted its Ordinance No. 910,
on December 17, 2003, approving the Downtown District Redevelopment Plan, and making certain
findings;
WHEREAS, the City Council, after notice duly published, conducted a public hearing on the
Second Amended and Restated Urban Renewal Plan, North Highway Urban Renewal Project,
Including South Addition (the “Second Amended and Restated Plan”);
WHEREAS, following said public hearing, the City Council adopted its Ordinance No. 950,
on December 21, 2005, approving the Second Amended and Restated Plan;
WHEREAS, the City Council, after notice duly published, conducted a public hearing on the
University Boulevard-South 12th West Urban Renewal Plan (“University Boulevard Plan”);
WHEREAS, following said public hearing, the City Council adopted its Ordinance No. 996
on December 19, 2007, approving the University Boulevard Plan, and making certain findings;
WHEREAS, the City Council, after notice duly published, conducted a public hearing on the
Amended and Restated Downtown District Redevelopment Plan (“Amended and Restated
Downtown Plan”);
WHEREAS, following said public hearing, the City Council adopted its Ordinance No. 1035
on December 2, 2009, approving the Amended and Restated Downtown Plan, and making certain
findings;
WHEREAS, the above referenced plans and project areas are collectively referred to as the
Project Areas;
WHEREAS, it has become apparent that additional property within the City may be
deteriorating or deteriorated and should be examined as to whether such an area is eligible for urban
renewal planning purposes;
WHEREAS, the Agency commenced certain discussions concerning examination of the new
area as appropriate for an urban renewal project (the “North Interchange Area”);
WHEREAS, the North Interchange Area was originally examined by Harlan W. Mann in
2006 concerning eligibility;
WHEREAS, in August 2013, the Agency authorized Terry Butikofer, Community
Development Consultant (the “Consultant”) at the Development Company, to commence an
eligibility study and preparation of an eligibility report of the North Interchange Area and
surrounding properties;
WHEREAS, the Agency obtained The North Interchange Area Urban Renewal Eligibility
Report (the “Original Report”), which examined an area in Rexburg known as the North Interchange
Urban Renewal Project Area, which area also included property located in Sugar City and Madison
County for the purpose of determining whether such area was a deteriorating area and deteriorated
area as defined by Idaho Code Sections 50-2018(9) and 50-2903(8);
WHEREAS, the Agency, on December 13, 2013, adopted Resolution No. 2013-3 accepting
the Original Report and authorized the Chairman of the Agency to transmit the Original Report to
the City Council requesting its consideration for designation of an urban renewal area and requesting
the City Council to direct the Agency to prepare an urban renewal plan for the North Interchange
Urban Renewal Project Area, which plan may include a revenue allocation provision as allowed by
law;
WHEREAS, the Agency also authorized the transmittal of the Original Report to Sugar City
and Madison County for purposes of obtaining resolutions determining such area to be deteriorated
and/or deteriorating and appropriate for an urban renewal project;
WHEREAS, based on further inquiries by and at the request of Sugar City, it became
apparent that additional property within the city limits of the city of Sugar City and certain properties
in unincorporated Madison County and adjacent and /or contiguous to the North Interchange Urban
Renewal Project Area may be deteriorating or deteriorated and should be examined as to whether
such additional area is eligible for urban renewal planning purposes;
WHEREAS, the Agency, during 2014, requested review of an additional area within the city
limits of the city of Sugar City and certain properties in unincorporated Madison County adjacent
and contiguous to the North Interchange Urban Renewal Project Area and preparation of a new
eligibility report for the area;
WHEREAS, the Agency has obtained the 2014 North Interchange Area Urban Renewal
Eligibility Report (the “2014 Report”), which examined an area in Rexburg known as the North
Interchange Urban Renewal Project Area, including the additional property within the city limits of
the city of Sugar City and certain properties in unincorporated Madison County, for the purpose of
determining whether such area is a deteriorating area or deteriorated area as defined by Idaho Code,
Sections 50-2018(9) and 50-2903(8);
WHEREAS, pursuant to Idaho Code Sections 50-2018(9) and 50-2903(8), which lists the
definition of deteriorating and a deteriorated area, many of the conditions necessary to be
present in such an area are found in the North Interchange Urban Renewal Project Area, i.e.,
a. substantial number of deteriorated or deteriorating structures;
b. predominance of defective or inadequate street layout;
c. faulty lot layout in relation to size, adequacy, accessibility or usefulness;
d. unsanitary or unsafe conditions;
e. deterioration of site and other improvements;
f. diversity of ownership;
g. tax and special assessment delinquency;
h. defective and unusual conditions of title;
i. existence of conditions which endanger life or property by fire and other causes; and
j. any combination of such factors.
WHEREAS, the effects of the listed conditions cited in the 2014 Report result in economic
underdevelopment of the area, substantially impairs or arrests the sound growth of a municipality,
constitutes an economic or social liability, and is a menace to the public health, safety, morals or
welfare in its present condition or use;
WHEREAS, the 2014 Report dated June 10, 2014, was submitted to the Agency, a copy of
which is attached hereto as Exhibit A;
WHEREAS, the Agency, on June 17, 2014, adopted Resolution No. 2014-3 (a copy of which
is attached hereto as Exhibit B) accepting the Report and authorizing the Chairman of the Agency to
transmit the Report to the City Council requesting its consideration for designation of an urban
renewal area and requesting the City Council to direct the Agency to prepare an Urban Renewal Plan
for the North Interchange Area, which Plan may include a revenue allocation provision as allowed
by law;
WHEREAS, the 2014 Report includes a preliminary analysis concluding the base assessment
roll value for the North Interchange Area along with the base assessment rolls for the Project Areas
does not exceed 10% of the overall property value of the City;
WHEREAS, under the Law and Act, Sections 50-2018(9) and 50-2903(8)(f), the definition
of a deteriorating area shall not apply to any agricultural operation as defined in section 22-4502(1),
Idaho Code, absent the consent of the owner of the agricultural operation except for an agricultural
operation that has not been used for three (3) consecutive years;
WHEREAS, additional analysis concerning any agricultural operations and additional
requests for consent of property owners who may have such agricultural operations within the past
three (3) consecutive years continues;
WHEREAS, Idaho Code Section 50-2018(18) states that an urban renewal agency cannot
exercise jurisdiction over any area outside the city limits without the approval of the other city or
county declaring the need for an urban renewal plan for the proposed area;
WHEREAS, a portion of the North Interchange Area includes certain properties within the
city limits of the city of Sugar City and certain properties in unincorporated Madison County;
WHEREAS, both Madison County and the city of Sugar City were asked to adopt a
resolution finding the need for an urban renewal project for the proposed North Interchange area;
WHEREAS Sugar City adopted the Agency’s findings concerning the proposed North
Interchange Area by adopting Resolution No. 2014-2 on July 24, 2014, which is attached hereto as
Exhibit C.2
WHEREAS Madison County adopted the Agency’s finding concerning the proposed North
Interchange Area by adopting Resolution No. 375 on July 28, 2014, which is attached hereto as
Exhibit D.1
WHEREAS, pursuant to Idaho Code Section 50-2008, an urban renewal project may not be
planned or initiated unless the local governing body has, by resolution, determined such area to be a
deteriorated area or deteriorating area, or combination thereof, and designated such area as
appropriate for an urban renewal project;
WHEREAS, Idaho Code Section 50-2904, also requires that in order to adopt an urban
renewal plan containing a revenue allocation financing provision, the local governing body must
made a finding or determination that the area included in such plan is a deteriorated area or
deteriorating area;
WHEREAS, it is desirable and in the best public interest that the Agency prepare an urban
renewal plan for the area identified as the North Interchange Area in the 2014 Report located in the
city of Rexburg, county of Madison, state of Idaho;
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE
CITY OF REXBURG, IDAHO:
Section 1: That the City Council of Rexburg finds and declares:
(a) That the North Interchange Area described in the 2014 Report is a deteriorated
or deteriorating area existing in Rexburg as defined by Chapters 20 and 29, Title 50, Idaho
Code, as amended;
(b) That there is a need for the Agency, an urban renewal agency, to
function in accordance with the provisions of said Chapters 20 and 29, Title 50, Idaho
Code, as amended, within a designated area for the purpose of establishing an urban renewal
plan;
(c) That the area identified as the North Interchange Area in the 2014 Report is
determined to be a deteriorated or deteriorating area, or a combination thereof, and such area
is designated as appropriate for an urban renewal project;
(d) That the area identified as the North Interchange Area in the 2014 Report
includes certain properties within the city limits of the city of Sugar City and certain
properties in unincorporated Madison County. Both Madison County and the city of Sugar
City have adopted resolutions finding the need for an urban renewal project for the proposed
North Interchange area; and
(e) That the Agency will need to receive the required consents from the property
owners prior to formally submitting the proposed urban renewal plan to the city of Rexburg
for its consideration.
Section 2: That the Agency commence preparation of an Urban Renewal Plan for
consideration by the Agency Board and, if acceptable, final consideration by the City
Council in compliance with Chapters 20 and 29, Title 50, Idaho Code, as amended.
Section 3: That this Resolution shall be in full force and effect immediately upon its
adoption and approval.
ADOPTED By the Council of the City of Rexburg, Idaho, this 20th day of August, 2014.
APPROVED By the Mayor of the City of Rexburg, Idaho, this 20th day of August, 2014.
APPROVED:
____________________________________
RICHARD S. WOODLAND, MAYOR
ATTEST:
________________________________________
BLAIR D. KAY, CITY CLERK
4818-4208-6938, v. 1
Attachment 9
Madison County Board of County Commissioners Resolution No. 392
Attachment 10
Rexburg City Council Resolution No. 2015-10
RESOLUTION NO. 2015-10
BY THE COUNCIL:
A RESOLUTION BY THE REXBURG CITY COUNCIL DETERMINING
CERTAIN ADDITIONAL AREAS WITHIN THE CITY TO BE A
DETERIORATED OR DETERIORATING AREA AS DEFINED BY IDAHO
CODE SECTIONS 50-2018(9) AND 50-2903(8); DIRECTING THE URBAN
RENEWAL AGENCY OF REXBURG TO COMMENCE THE PREPARATION
OF AN URBAN RENEWAL PLAN SUBJECT TO CERTAIN CONDITIONS,
WHICH PLAN MAY INCLUDE REVENUE ALLOCATION PROVISIONS
FOR ALL OR PART OF THE AREA; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the Rexburg City Council (“City Council”) and Mayor of Rexburg
respectively on or about November 6, 1991, adopted and approved a resolution creating
the Rexburg Urban Renewal Agency, also known as the Rexburg Redevelopment Agency
(the “Agency”), authorizing it to transact business and exercise the powers granted by the
Idaho Urban Renewal Law of 1965, Chapter 20, Title 50, Idaho Code, as amended
(hereinafter the “Law”), and the Local Economic Development Act, Chapter 29, Title 50,
Idaho Code, as amended (hereinafter the “Act”) upon making the findings of necessity
required for creating said Agency;
WHEREAS, the City Council of the city of Rexburg, Idaho (the “City”), after
notice duly published, conducted a public hearing on the North Highway Urban Renewal
Project pursuant to the North Highway Urban Renewal Plan (the “North Highway Plan”)
to redevelop a portion of the City, pursuant to the Law and the Act;
WHEREAS, following said public hearing, the City Council adopted its
Ordinance No. 728 on December 27, 1991, approving the North Highway Urban
Renewal Plan and making certain findings;
WHEREAS, the City Council, after notice duly published, conducted a public
hearing on the Washington School Urban Renewal Plan (the “Washington School Urban
Renewal Plan”);
WHEREAS, following said public hearing, the City Council adopted its
Ordinance No. 794 on June 3, 1997, approving the Washington School Urban Renewal
Plan, and making certain findings;
WHEREAS, the City Council, after notice duly published, conducted a public
hearing on the North Highway Amended and Restated Urban Renewal Plan (the “North
Highway Amended and Restated Plan”);
WHEREAS, following said public hearing, the City Council adopted its
Ordinance No.815 on December 30, 1998, approving the North Highway Amended and
Restated Plan and making certain findings;
WHEREAS, the City Council, after notice duly published, conducted a public
hearing on the Downtown District Redevelopment Plan (the “Downtown Plan”);
WHEREAS, following said public hearing, the City Council adopted its
Ordinance No.
910, on December 17, 2003, approving the Downtown District Redevelopment
Plan, and making certain findings;
WHEREAS, the City Council, after notice duly published, conducted a public
hearing on the Second Amended and Restated Urban Renewal Plan, North Highway
Urban Renewal Project, Including South Addition (the “Second Amended and Restated
Plan”);
WHEREAS, following said public hearing, the City Council adopted its
Ordinance No. 950, on December 21, 2005, approving the Second Amended and Restated
Plan;
WHEREAS, the City Council, after notice duly published, conducted a public
hearing on the University Boulevard-South 12th West Urban Renewal Plan (“University
Boulevard Plan”);
WHEREAS, following said public hearing, the City Council adopted its
Ordinance No.
996 on December 19, 2007, approving the University Boulevard Plan, and making
certain findings;
WHEREAS, the City Council, after notice duly published, conducted a public
hearing on the Amended and Restated Downtown District Redevelopment Plan
(“Amended and Restated Downtown Plan”);
WHEREAS, following said public hearing, the City Council adopted its
Ordinance No. 1035 on December 2, 2009, approving the Amended and Restated
Downtown Plan, and making certain findings;
WHEREAS, the City Council, after notice duly published, conducted a public
hearing on the Second Amended and Restated Downtown District Redevelopment Plan,
Downtown Urban Renewal Project (the “Second Amended and Restated Downtown
Plan”);
WHEREAS, following said public hearing, the City Council adopted its
Ordinance No. 1123 on November 5, 2014, approving the Second Amended and Restated
Downtown Plan, and making certain findings;
WHEREAS, the above referenced plans and project areas are collectively referred
to as the Project Areas;
WHEREAS, it has become apparent that additional property within the City may
be deteriorating or deteriorated and should be examined as to whether such areas are
eligible for urban renewal planning purposes;
WHEREAS, the Agency commenced certain discussions concerning examination
of the new area as appropriate for an urban renewal project (the “North Interchange
Area”);
WHEREAS, the eligibility of the North Interchange Area was originally
examined by Harlan W. Mann in 2006;
WHEREAS, in August 2013, the Agency authorized Terry Butikofer, Community
Development Consultant (the “Consultant”) at The Development Company, to commence
an eligibility study and preparation of an eligibility report of the North Interchange Area
and surrounding properties;
WHEREAS, the Agency obtained The North Interchange Area Urban Renewal
Eligibility Report (the “2013 Eligibility Report”), which examined an area in the City
known as the North Interchange Urban Renewal Project Area, which area also included
property located in the city of Sugar City and Madison County for the purpose of
determining whether such areas were deteriorating areas and deteriorated areas as defined
by Idaho Code Sections 50-2018(9) and 50- 2903(8);
WHEREAS, the Agency, on December 13, 2013, adopted Resolution No. 2013-3
accepting the 2013 Eligibility Report and authorized the Chairman of the Agency to
transmit the 2013 Eligibility Report to the City Council requesting its consideration for
designation of an urban renewal area and requesting the City Council to direct the
Agency to prepare an urban renewal plan for the North Interchange Urban Renewal
Project Area, which plan may include a revenue allocation provision as allowed by law;
WHEREAS, the Agency also authorized the transmittal of the 2013 Eligibility
Report to the Sugar City “City Council” and the Madison County Board of County
Commissioners for purposes of obtaining resolutions determining such areas outside the
boundaries of the City to be deteriorated and/or deteriorating and appropriate for an urban
renewal project;
WHEREAS, based on further inquiries by and at the request of the Sugar City
“City Council”, it became apparent that additional property within the city limits of the
city of Sugar City and certain properties in unincorporated Madison County and adjacent
and/or contiguous to the North Interchange Urban Renewal Project Area may be
deteriorating or deteriorated and should be examined as to whether such additional areas
were eligible for urban renewal planning purposes;
WHEREAS, the Agency, during 2014, requested the Consultant review certain
additional areas within the city limits of the city of Sugar City and certain properties in
unincorporated Madison County adjacent and contiguous to the property subject to an
eligibility determination in the 2013 Eligibility Report and prepare a new eligibility
report for the area;
WHEREAS, the Agency obtained the North Interchange Area Urban Renewal
Eligibility Report, dated June 10, 2014 (the “2014 Eligibility Report”), which examined
an area in the City known as the North Interchange Urban Renewal Project Area that was
originally reviewed in the 2013 Eligibility Report and also included an examination of the
additional property within the city limits of the city of Sugar City and certain properties
in unincorporated Madison County for the purpose of determining whether such areas are
deteriorating areas or deteriorated areas as defined by Idaho Code, Sections 50-2018(9)
and 50-2903(8);
WHEREAS, the 2014 Eligibility Report was submitted to the Agency;
WHEREAS, the Agency, on June 17, 2014, adopted Resolution No. 2014-3
accepting the 2014 Eligibility Report and authorizing the Chairman of the Agency to
transmit the 2014 Eligibility Report to the City Council requesting consideration for
designation of an urban renewal area and requesting the City Council to direct the
Agency to prepare an Urban Renewal Plan for the North Interchange Area, which plan
may include a revenue allocation provision as allowed by law;
WHEREAS, Idaho Code Section 50-2018(18) states that an urban renewal agency
cannot exercise jurisdiction over any area outside the city limits without the approval of
the other city or county declaring the need for an urban renewal plan for the proposed
area;
WHEREAS, the area considered within the 2014 Eligibility Report included
certain properties within Sugar City and certain properties within unincorporated
Madison County;
WHEREAS, the 2014 Eligibility Report was submitted to the Sugar City “City
Council” and the Madison County Board of County Commissioners, and both the
Madison County Board of County Commissioners and the Sugar City “City Council”
were asked to adopt a resolution finding the need for an urban renewal project for the
proposed North Interchange Area;
WHEREAS, the Sugar City “City Council” adopted the Agency’s findings
concerning the proposed North Interchange Area by adopting Resolution No. 2014-2 on
July 24, 2014;
WHEREAS, the Madison County Board of County Commissioners adopted the
Agency’s finding concerning the proposed North Interchange Area by adopting
Resolution No. 375 on July 28, 2014;
WHEREAS, the City Council, by Resolution No. 2014-16, dated August 20,
2014, declared the North Interchange Area described in the 2014 Eligibility Report to be
a deteriorated or deteriorating area as defined b y Chapters 20 and 29, Title 50, Idaho
Code, as amended, that such area is appropriate for an urban renewal project, that both
the Sugar City City Council and the Madison County Board of County Commissioners
adopted the necessary resolutions and directed the Agency to commence preparation of
an urban renewal plan;
WHEREAS, preparation of the urban renewal plan was delayed in order to obtain
the required property owner consents for agricultural property included within the North
Interchange Area;
WHEREAS, it has further become apparent that additional property adjacent and
contiguous to the North Interchange Area, as described in the 2014 Eligibility Report,
may be deteriorating or deteriorated and should be examined as to whether such area is
eligible for urban renewal planning purposes;
WHEREAS, the Agency, during 2015, authorized the Consultant and Richard
Horner, the Agency Chairman, to review such additional areas within unincorporated
Madison County and the City adjacent and contiguous to the North Interchange Area and
requested preparation of a supplemental eligibility report for such areas;
WHEREAS, the Agency obtained The North Interchange Area Urban Renewal
Supplemental Eligibility Report, dated June 4, 2015 (the “2015 Supplemental Eligibility
Report”), which examined additional property within unincorporated Madison County
and the City that is adjacent and contiguous to the North Interchange Area as described in
the 2014 Eligibility Report, for the purposes of determining whether such areas are
deteriorating areas or deteriorated areas as defined by Idaho Code Sections 50-2018(9) an
50-2903(8);
WHEREAS, pursuant to Idaho Code Sections 50-2018(9) and 50-2903(8), which
lists the definition of deteriorating and a deteriorated area, many of the conditions
necessary to be present in such an area are found in the additional areas adjacent and
contiguous to the North Interchange Area as more fully set forth in the 2015
Supplemental Eligibility Report, i.e.,
a. predominance of defective or inadequate street layout;
b. faulty lot layout in relation to size, adequacy, accessibility or
usefulness;
c. unsanitary or unsafe conditions;
d. deterioration of site and other improvements;
e. existence of conditions which endanger life or property by fire and
other causes; and
f. any combination of such factors.
WHEREAS, the effects of the listed conditions cited in the 2015 Supplemental
Eligibility Report result in economic underdevelopment of the area, substantially impairs
or arrests the sound growth of a municipality, constitutes an economic or social liability,
and is a menace to the public health, safety, morals, or welfare in its present condition or
use;
WHEREAS, the 2015 Supplemental Eligibility Report includes a preliminary
analysis concluding the base assessment roll value for the North Interchange Area, as
supplemented by the 2015 Supplemental Eligibility Report, along with the base
assessment rolls for the Project Areas does not exceed 10% of the overall property value
of the City;
WHEREAS, the Agency accepted the 2015 Supplemental Eligibility Report by
way of Resolution No. 2015-2 at the June 4, 2015, meeting of the Agency Board.
Attached hereto as Exhibit A is a true and correct copy of the adopted Agency
Resolution, which includes the 2015 Supplemental Eligibility Report and a map of the
North Interchange Area;
WHEREAS, under the Law and Act, Sections 50-2018(9) and 50-2903(8)(f), the
definition of a deteriorating area shall not apply to any agricultural operation as defined in
section 22-4502(1), Idaho Code, absent the consent of the owner of the agricultural
operation except for an agricultural operation that has not been used for three (3)
consecutive years;
WHEREAS, additional analysis concerning any agricultural operations and
additional requests for consent of property owners who may have such agricultural
operations within the past three (3) consecutive years continues;
WHEREAS, Idaho Code Section 50-2018(18) states that an urban renewal agency
cannot exercise jurisdiction over any area outside the city limits without the approval of
the other city or county declaring the need for an urban renewal plan for the proposed
area;
WHEREAS, the proposed additional areas adjacent and contiguous to the North
Interchange Area as described in the 2015 Supplemental Eligibility Report include certain
properties within unincorporated Madison County;
WHEREAS, the Madison County Board of County Commissioners was asked to
adopt a resolution finding the need for an urban renewal project for the proposed
additional areas adjacent and contiguous to the North Interchange area;
WHEREAS the Madison County Board of County Commissioners adopted the
Agency’s findings concerning the proposed additional areas adjacent and contiguous to
the North Interchange Area as set forth in the 2015 Supplemental Eligibility Report by
adopting Resolution No. 392 on June 15, 2015, which is attached hereto as Exhibit B.1
WHEREAS, pursuant to Idaho Code Section 50-2008, an urban renewal project
may not be planned or initiated unless the local governing body has, by resolution,
determined such area to be a deteriorated area or deteriorating area, or combination
thereof, and designated such area as appropriate for an urban renewal project;
WHEREAS, Idaho Code Section 50-2906, also requires that in order to adopt an
urban renewal plan containing a revenue allocation financing provision, the local
governing body must made a finding or determination that the area included in such plan
is a deteriorated area or deteriorating area;
WHEREAS, it is desirable and in the best public interest that the Agency prepare
an urban renewal plan for the overall area, including the area identified as the North
Interchange Area in the 2014 Eligibility Report, as previously determined by the City
Council to be a deteriorated or deteriorating area and appropriate for an urban renewal
project by Resolution No. 2014-16, and including the area described in the 2015
Supplemental Eligibility Report adjacent and contiguous to the area described in the 2014
Eligibility Report, located in the city of Rexburg, county of Madison, state of Idaho;
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL
OF THE CITY OF REXBURG, IDAHO:
Section 1: That the City Council of Rexburg finds and declares:
That the areas described in the 2015 Supplemental Eligibility Report adjacent and
contiguous to the North Interchange Area are deteriorated or deteriorating areas existing
in the City as defined by Chapters 20 and 29, Title 50, Idaho Code, as amended;
(a) That there is a need for the Agency, an urban renewal agency, to function
in accordance with the provisions of said Chapters 20 and 29, Title 50, Idaho Code, as
amended, within a designated area for the purpose of establishing an urban renewal plan;
(b) That the additional areas adjacent and contiguous to the North Interchange
Area as identified in the 2015 Supplemental Eligibility Report are determined to be
deteriorated or deteriorating areas, or a combination thereof, and such areas are
designated as appropriate for an urban renewal project;
(c) That the additional areas adjacent and contiguous to the North Interchange
Area as set forth in the 2015 Supplemental Eligibility Report include certain properties
within unincorporated Madison County. The Madison County Board of County
Commissioners has adopted a resolution finding the need for an urban renewal project for
the proposed additional areas; and
(d) That the Agency will need to receive the required consents from the
property owners prior to formally submitting the proposed urban renewal plan to the City
for its consideration.
(e) That the areas described in the 2015 Supplemental Eligibility Report
adjacent and contiguous to the North Interchange Area are deteriorated or deteriorating
areas existing in the City as defined by Chapters 20 and 29, Title 50, Idaho Code, as
amended;
Section 2: That the Agency commence preparation of an Urban Renewal Plan
for consideration by the Agency Board and, if acceptable, final consideration by the City
Council in compliance with Chapters 20 and 29, Title 50, Idaho Code, as amended. This
Urban Renewal Plan is for the overall area, including the area identified as the North
Interchange Area in the 2014 Eligibility Report, as previously determined by the City
Council to be a deteriorated or deteriorating area and appropriate for an urban renewal
project by Resolution No. 2014-16, and including the area described in the 2015
Supplemental Eligibility Report adjacent and contiguous to the area described in the 2014
Eligibility Report.
Section 3: That this Resolution shall be in full force and effect immediately
upon its adoption and approval.
ADOPTED By the Council of the City of Rexburg, Idaho, this 17th day of June, 2015.
APPROVED By the Mayor of the City of Rexburg, Idaho, this 17th day of June, 2015.
APPROVED:
___________________________________________ Richard S. Woodland, Mayor
ATTEST
Blair D. Kay, City Clerk
Attachment 11
Agricultural Consents