HomeMy WebLinkAboutOrd 1201 Exhibit A Termination PlanCITY OF REXBURG ORDINANCE NO. 1201 EXHIBIT A
THE URBAN RENEWAL AGENCY OF REXBURG, IDAHO, ALSO KNOWN AS REXBURG REDEVELOPMENT AGENCY
TERMINATION PLAN FOR THE REVENUE ALLOCATION AREA SET FORTH IN THE WASHINGTON SCHOOL URBAN RENEWAL PROJECT URBAN RENEWAL PLAN
The Rexburg Urban Renewal Agency of Rexburg, Idaho, also known as Rexburg Redevelopment Agency (“Agency”) intends to terminate the revenue allocation area adopted at the time of the
original adoption of the Washington School Urban Renewal Project Urban Renewal Plan in Rexburg, effective June 5, 1997, (the “Plan”) for the Washington School Project Area. The termination
date for this revenue allocation area as set forth in the Plan is December 31, 2017; except for revenues to be received in 2018, as authorized pursuant to Idaho Code § 50-2905(7).
The Agency has reviewed the projected revenues and expenses of the Plan and has determined the revenue allocation area can be terminated by December 31, 2018, effective retroactive
to January 1, 2018, as it relates to assessed values within the project area. As a result, the Agency does not intend to take revenue allocation funds in calendar year 2019, generated
from the 2018 assessed values, and the allocation of revenues under § 50-2908, Idaho Code, shall cease effective January 1, 2018.
Intent Regarding Delinquencies:
The Agency does not intend to receive revenue allocation funds from delinquency tax payments in calendar year 2019, or subsequent years, generated from the 2017 assessed values, or earlier.
Fiscal Year 2019 Budget Summary:
The Agency expects most of the expenses from any remaining improvements to be completed under the Plan to be incurred and satisfied by the Agency’s current fiscal year ending September
30, 2018, with the exception of possible project carryover costs on the street reconstruction project at the corner of 2nd West and 1st North in the estimated amount of $300,000. Additionally,
there are administrative fees and costs due to termination that will be incurred during the Agency’s next fiscal year (FY2019). An estimate of the remaining administrative fees and
costs is $30,000. The Agency will not have sufficient funds on deposit for payment of all final project costs owed to the City of Rexburg, but will have sufficient funds for any remaining
administrative costs and fees.
At this point, the Agency is anticipating there will not be a surplus to be distributed prior to the end of the Agency’s 2018 fiscal year, September 30, 2018, nor a final surplus to
be distributed prior to the end of the Agency’s 2019 fiscal year, September 30, 2019. If there are any available funds at the end of the Agency’s 2019 fiscal year, they will be remitted
to the County Treasurer to be distributed to the taxing districts in the same manner and proportion as the most recent distribution to the taxing districts of the taxes on the taxable
property located within the revenue allocation area.
Real Property Disposition:
The Agency currently owns a parcel consisting of approximately one and one-third acre generally located at the corner of 2nd West and 1st North (the “Site”). The Agency has recently
awarded development rights to a developer for the redevelopment of the Site in conformance with the Washington School Plan. The developer and Agency intend to refine the proposed scope
of development and other development details within the next few months, ultimately entering into a Disposition and Development Agreement (“DDA”). The DDA will include a schedule of
performance and will address the purchase price to be paid by the developer, subject to certain conditions.
The Agency will comply with the disposition requirements set forth in Idaho Code section 50-2011. The Agency anticipates the DDA will be approved and executed by September 30, 2018;
however, disposition of the Site may not occur until after that date. Any proceeds from the sale of the Site shall be used to reimburse the City of Rexburg for funds the City advanced
for the public improvements related to the reconfiguration and reconstruction of the corner of 2nd West and 1st North.
The Agency previously committed to reimburse the City for the costs of those public improvements. The reimbursement amount due the City totals over $431,000. The Agency anticipates
paying the city about $155,000 on or before September 30, 2018. Any sale proceeds from the Site will be applied to the remaining amount due to the City.
If sale proceeds are less than sufficient to pay the remaining amount due the City, the Agency will be relieved of any additional reimbursement requirement. If sale proceeds exceed the
remaining amount due, the excess will be disbursed to Madison County for distribution to the taxing entities on or before September 30, 2019.
In the event the disposition of the Site to the developer does not occur prior to September 30, 2019, the Agency intends to transfer the Site to the City on or before September 30, 2019,
which will relieve the Agency of any further commitment to the City in behalf of this project.