HomeMy WebLinkAboutOrd No 1201 - Termination of Washington School Urban Renewal DistrictInstrument # 419062
REXBURG, MADISON, IDAHO
9-27-2018 02:07:30 PM No. of Pages: 11
Recorded for: CITY OF REXBURG
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ORDINANCE NO. 1201
Termination of the Washington School Urban Renewal District
BY THE COUNCIL:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
REXBURG, IDAHO, IMMEDIATELY TERMINATING THE
REVENUE ALLOCATION AREA FOR THE WASHINGTON
SCHOOL URBAN RENEWAL PROJECT URBAN RENEWAL
PLAN AREA; REQUIRING DISTRIBUTION OF ANY SURPLUS
DETERMINED TO EXIST AS OF SEPTEMBER 30, 2019,
PURSUANT TO SECTION 50-2909, IDAHO CODE;
AUTHORIZING THE CITY CLERK OR THE URBAN RENEWAL
AGENCY OF THE CITY OF REXBURG, ALSO KNOWN AS
REXBURG REDEVELOPMENT AGENCY TO FILE THE
ORDINANCE, TOGETHER WITH THE BOUNDARY MAP AND
LEGAL DESCRIPTION, WITH THE OFFICE OF THE COUNTY
RECORDER, THE COUNTY ASSESSOR AND THE IDAHO
STATE TAX COMMISSION AS PROVIDED IN SECTION 63-215,
IDAHO CODE; PROVIDING THAT A COPY OF THIS
ORDINANCE SHALL BE GIVEN TO EACH OF THE TAXING
ENTITIES AFFECTED BY SAID REVENUE ALLOCATION
AREA; APPROVING THE SUMMARY OF THE ORDINANCE;
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Mayor and City Council (the "City Council') of the city of
Rexburg, Idaho (the "City"), respectively, on or about November 6, 1991, adopted and
approved a resolution creating the Urban Renewal Agency of the city of Rexburg, 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, Title
50, Chapter 20, Idaho Code, as amended (the "Law"), and the Local Economic
Development Act, Title 50, Chapter 29, Idaho Code, as amended (the "Act'), upon
making the findings of necessity required for creating said Agency;
WHEREAS, the City Council, after notice duly published, conducted a public
hearing on the Washington School Urban Renewal Project Urban Renewal Plan (the
"Washington School Plan");
WHEREAS, following said public hearing, the City Council adopted its
Ordinance No. 794 on June 3, 1997, approving the Washington School Plan, and making
certain findings;
WHEREAS, the Washington School Plan contained a revenue allocation
financing provision pursuant to the Act;
WHEREAS, the termination date for this revenue allocation area, as set forth in
the Washington School Plan, is December 31, 2017, except for revenues to be received in
2018, as authorized pursuant to Idaho Code § 50-2905(7);
WHEREAS, a substantial portion of identified projects have been completed in
the Washington School Plan area;
ORDINANCE NO. 1201 - Page - I
WHEREAS, it appears there are remaining projects to be completed under the
Washington School Plan, which will not be fully completed by the end of the Agency's
current fiscal year ending September 30, 2018;
WHEREAS, it is expected most of the expenses from any remaining
improvements to be completed under the Washington School Plan are 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 over $276,000. An estimate
of the remaining project costs and other administrative fees and costs are set forth in the
Termination Plan attached hereto as Exhibit A. The Termination Budget is attached
hereto as Exhibit B;
WHEREAS, pursuant to Exhibit A, and as shown on Boundary Map of the
Terminating Revenue Allocation Area, attached hereto as Exhibit C, the Agency intends
to retain the Agency owned parcel and will seek redevelopment proposals. If
unsuccessful, the Agency intends to transfer the parcel to the City.
WHEREAS, the Agency does not intend to receive delinquent property taxes due
to the Agency that were levied for calendar year 2017, or earlier;
WHEREAS, the Agency will have sufficient funds on deposit for payment of all
final project costs and administrative fees;
WHEREAS, the Agency has reviewed the remaining improvements and/or
projects and based on projected revenues and expenses of the Washington School Plan,
has determined there are sufficient funds for payment of all final improvement costs and
Agency expenses and has further determined the revenue allocation area can be
terminated on or before December 31, 2018;
WHEREAS, pursuant to Exhibit A. the Agency estimates a minimal surplus will
be available for distribution on or before September 30, 2018, and which will be included
in the Agency's amended FY 2018 budget;
WHEREAS, the Agency on June 7, 2018, passed Resolution No. 2018-02
recommending the City Council adopt an ordinance terminating the revenue allocation
area on or before December 31, 2018;
WHEREAS, a copy of the boundary map and legal description of the revenue
allocation area are attached hereto as Exhibit C and Exhibit D. respectively.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL
OF THE CITY OF REXBURG, IDAHO:
Section 1: That the above statements are true and correct.
Section 2: That the revenue allocation area contained in the Washington
School Plan, as more particularly shown and described in Exhibit C and Exhibit D, is
hereby terminated, consistent with the termination provisions set forth in the Act.
Section 3: That the tax year 2018 revenues from the increment value as levied
upon within the revenue allocation area are not needed for the payment of any Agency
indebtedness or Agency projects to be completed before September 30, 2019.
Section 4: That any surplus will be distributed prior to the end of the
Agency's 2019 fiscal year on or before September 30, 2019. Any surplus funds 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. See I.C. 50-2909(4).
Further, any other remaining funds in subsequent fiscal years received by the Agency
from delinquent taxes after September 30, 2019, shall be disbursed in the same manner
each fiscal year.
ORDINANCE NO. 1201 - Page - 2
Commission, together with a boundary map and legal description, to provide notice of
termination of the revenue allocation area in the Washington School Plan by either the
City Clerk or Agency representatives.
Section 6: That this Ordinance shall be in full force and effect immediately
upon its adoption, approval and publication.
Section 7: The Summary of this Ordinance, a copy of which is attached
hereto as Exhibit E, is hereby approved.
PASSED by the Council of the City of Rexburg, Idaho, this 12`h day of September
2018.
APPROVED by the Mayor of the City of Rexburg, Idaho, this 121h day of
September 2018.
ATTEST:
Deborah Lovejoy, City C er
STATE OF IDAHO )
ss:
County of Madison )
r
Serry L. errill, ayor
I, DEBORAH LOVEJOY, City Clerk of the city of Rexburg, Idaho, do hereby
certify: That the above and foregoing is a full, true and correct copy of the Ordinance
Entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF REXBURG,
IDAHO, IMMEDIATELY TERMINATING THE REVENUE ALLOCATION
AREA FOR THE WASHINGTON SCHOOL URBAN RENEWAL PROJECT
URBAN RENEWAL PLAN AREA; REQUIRING DISTRIBUTION OF ANY
SURPLUS DETERMINED TO EXIST AS OF SEPTEMBER 30, 2019, PURSUANT
TO SECTION 50-2909, IDAHO CODE; AUTHORIZING THE CITY CLERK OR
THE URBAN RENEWAL AGENCY OF THE CITY OF REXBURG, ALSO
KNOWN AS REXBURG REDEVELOPMENT AGENCY TO FILE THE
ORDINANCE, TOGETHER WITH THE BOUNDARY MAP AND LEGAL
DESCRIPTION, WITH THE OFFICE OF THE COUNTY RECORDER, THE
COUNTY ASSESSOR AND THE IDAHO STATE TAX COMMISSION AS
PROVIDED IN SECTION 63-215, IDAHO CODE; PROVIDING THAT A COPY
OF THIS ORDINANCE SHALL BE GIVEN TO EACH OF THE TAXING
ENTITIES AFFECTED BY SAID REVENUE ALLOCATION AREA;
APPROVING THE SUMMARY OF THE ORDINANCE; AND PROVIDING AN
EFFECTIVE DATE.
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GGRPDR�T Deborah Lovejoy,
City Clerk
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ORDINANCE NO. 1201 - Page - 3
CITY 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 Budeet Summ
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 2"d 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.
1
Real Pronertv Disposition:
The Agency currently owns a parcel consisting of approximately one and one-third acre
generally located at the corner of 2nd West and 1 st 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 1 st 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.
2
Exhibit B
Rexburg Urban Renewal Agency
Washington School District
FY 2018 Termination Budget
Construction/Demolition Costs Owed to City $431,695.17
Estimated Future Administrative Costs
$ 30,000.00
Total Estimated Costs to Closeout
$461,695.17
Current Cash Balance as of 4130118
Estimated Tax Receipts through 9130118
$ 95,497.26
$ 90,000.00
Total Available Funds through 9130/18
$185,497.26
Estimated Net Deficit Owed to City
$ 276,197.91
Estimated Possible City Writeoff
$276;197.91
Estimated Payment to City by 9/30/18
Estimated Administrative Costs before 9/30/18
$155,000.00
$ 151000.00
Total Budgeted Expenditures for FY 2018
$170,000.00
Estimated Carryover for FY 2019 $ 16,000.00
Estimated Expenses for FY 2019 $ 161000.00
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EXHIBIT D
WASHINGTON SCHOOL PLAN
LEGAL DESCRIPTION OF URBAN RENEWAL PROJECT AREA AND
REVENUE ALLOCATION AREA
REXBURG, IDAHO
A tract of land described as follows:
Parcel located in the City of Rexburg, Idaho, commencing at a point that is North 69°55'40"
West a distance of 2375.37 feet from the Southeast corner of Section 19 Township 6 North,
Range 40 East, Boise Meridian, Madison County, Idaho, with said point located at the Southwest
corner of Rexburg City Block 23 Lot 3, thence West a distance of 1612 feet along the North
right-of-way line of 1St North Street to the Southeast corner of Rexburg City Block 26 Lot 4,
thence South a distance of 891 feet along the West right-of-way line of 3`d West Street to the
Northeast corner of Rexburg City Block 42 Lotl, thence East a distance of 1612 feet along the
South right-of-way line of Main Street to the Southwest corner of Rexburg City Block 39 Lot 2,
thence North a distance of 891 feet along the East right-of-way line of 1St West Street to the point
of beginning.
CITY OF REXBURG ORDINANCE NO. 1201 EXHIBIT E
SUMMARY OF ORDINANCE NO. 1201
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
REXBURG, IDAHO, IMMEDIATELY TERMINATING THE REVENUE
ALLOCATION AREA FOR THE WASHINGTON SCHOOL URBAN
RENEWAL PROJECT URBAN RENEWAL PLAN AREA; REQUIRING
DISTRIBUTION OF ANY SURPLUS DETERMINED TO EXIST AS OF
SEPTEMBER 30, 2019, PURSUANT TO SECTION 50-2909, IDAHO
CODE; AUTHORIZING THE CITY CLERK OR THE URBAN
RENEWAL AGENCY OF THE CITY OF REXBURG, ALSO KNOWN AS
REXBURG REDEVELOPMENT AGENCY TO FILE THE ORDINANCE,
TOGETHER WITH THE BOUNDARY MAP AND LEGAL
DESCRIPTION, WITH THE OFFICE OF THE COUNTY RECORDER,
THE COUNTY ASSESSOR AND THE IDAHO STATE TAX
COMMISSION AS PROVIDED IN SECTION 63-215, IDAHO CODE;
PROVIDING THAT A COPY OF THIS ORDINANCE SHALL BE GIVEN
TO EACH OF THE TAXING ENTITIES AFFECTED BY SAID REVENUE
ALLOCATION AREA; APPROVING THE SUMMARY OF THE
ORDINANCE; AND PROVIDING AN EFFECTIVE DATE.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE
CITY OF REXBURG, IDAHO:
Section 1: That the revenue allocation area contained in the Washington School Plan,
as more particularly shown and described in Exhibit C and Exhibit D to City Council Ordinance
No. 1201, is hereby terminated, consistent with the termination provisions set forth in the Local
Economic Development Act, Chapter 29, Title 50, Idaho Code, as amended.
Section 2: That the tax year 2018 revenues from the increment value as levied upon
within the revenue allocation area are not needed for the payment of any Agency indebtedness or
Agency projects to be completed before September 30, 2019.
Section 3: That any surplus will be distributed prior to the end of the Agency's 2019
fiscal year on or before September 30, 2019. Any surplus funds 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. See I.C. 50-2909(4). Further, any other remaining funds in subsequent
fiscal years received by the Agency from delinquent taxes after September 30, 2019, shall be
disbursed in the same manner each fiscal year.
Section 4: That a copy of this Ordinance shall be sent to and/or filed with the
Madison County Assessor's Office, the County Auditor/Recorder and the Idaho State Tax
Commission, together with a boundary map and legal description, to provide notice of
SUMMARY OF ORDINANCE NO. 1201- Page - 1
termination of the revenue allocation area in the Washington School Plan by either the City
Clerk or Agency representatives.
Section 5: That this Ordinance shall be in full force and effect immediately upon its
adoption, approval and publication.
Section 6: Approval of Summary.
EXHIBITS TO THE ORDINANCE
Exhibit A Termination Plan setting forth an estimate of remaining project costs and other
administrative fees and costs, together with an estimate of any surplus that may be
available for distribution on or before September 30, 2019
Exhibit B Termination Budget
Exhibit C Boundary Map of the Terminating Revenue Allocation Area
Exhibit D Legal Description of the Terminating Revenue Allocation Area
Exhibit E Ordinance Summary
PASSED by the Council of the City of Rexburg, Idaho, this 12th day of September 2018.
APPROVED by the Mayor of the City of Rexburg, Idaho, this 12th day of September
2018.
The full text of Ordinance No. 1201 is available at the offices of the City Clerk, Rexburg
City Hall, 35 North 1St East, Rexburg, Idaho, 83440.
This summary is approved by the Rexburg City Council at its meeting of September 12th,
2018.
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ayorJ 4MenUll
ATTEST:
7!De:b-oorah
Lovejoy, City Clerk
SUMMARY OF ORDINANCE NO. 1201- Page - 2
I, Stephen P. Zollinger, City Attorney for the city of Rexburg, Idaho, hereby declare and
certify that in my capacity as City Attorney of the city of Rexburg, pursuant to Idaho Code
Section 50-901A(3) of the Idaho Code, as amended, I have reviewed a copy of the above
Summary of Ordinance, have found the same to be true and complete, and said Summary of
Ordinance provides adequate notice to the public of the contents, including the exhibits, of
Ordinance No. 1201.
DATED this 12th day of September 2018.
Stephed P. Zollinger, Ci / kttomey
Rexburg, Idaho
4826-6345-2781. v. 1
SUMMARY OF ORDINANCE NO. 1201- Page - 3